Japan's second-biggest bank pushes through with overseas expansion

The move contrasts the downsizing planned by other global firms HSBC and Deutsche.

SMBC Nikko Securities, the securities arm of Japan’s second-biggest bank, plans to open branches in Paris and Abu Dhabi, its President Yuichiro Kondo told Bloomberg in an interview.

It also intends to hire about 10 people for its North American bond underwriting team by March 2023, bringing the total to roughly 40, partly to win more high-yield debt business in the US, he said.

“Overall, we are on the offensive,” said Kondo, 57, who took the helm on 1 April. “Tough times bring opportunities.”

The move matches the strategy of the firm’s parent, Sumitomo Mitsui Financial Group, which is seeking to boost headcount overseas as the economic fallout from the pandemic further undercuts Japan’s growth potential. The foray contrasts with the downsizing planned at European banks, including HSBC Holdings and Deutsche Bank AG, in the face of the worst global recession in decades.

Here’s more from Bloomberg.