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▼ New SMFG CEO Nakashima Vows To 'Restrengthen' Business In Japan
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Executive seeks to catch up to rivals in wholesale as he takes bank's reins
Sumitomo Mitsui Financial Group has named Deputy President Toru Nakashima as its next president and group CEO, choosing a manager with extensive political and government connections to succeed Jun Ohta, who died this past Saturday.
Nakashima was already acting president and acting group CEO. The permanent appointments were approved by SMFG's board on Thursday and take effect Friday.
"I would like to maintain the positive trend [of strong earnings] and lead the group to even greater heights," Nakashima told a news conference Thursday.
Nakashima served as group chief financial officer for four years starting in fiscal 2019, supporting Ohta at the helm. He had long been favored to succeed Ohta, who had recommended him by name.
At the news conference, Nakashima expressed his intention to continue Ohta's legacy. "I'd like to tell our employees that we will carry on with Mr. Ohta's wishes and that this will be our way of honoring him," he said.
Takeshi Kunibe remains chairman without representative rights.
"I want him to apply his logical, scientific way of thinking to management," Kunibe said of Nakashima at the news conference.
A graduate of the University of Tokyo's Faculty of Engineering, Nakashima will be SMFG's first head with a background in the sciences.
Nakashima's career has centered on business planning, a core function of management. He was also involved in negotiating the merger between the former Sumitomo Bank and Sakura Bank that created Sumitomo Mitsui Banking Corp.
SMBC is known for its extensive dealings with smaller and midtier companies. But Nakashima since April had been in charge of business with large corporations.
"Looking at [Japan's] top three banks, it's difficult to say we do enough business with big domestic companies," Nakashima said Thursday of the challenges ahead.
The wholesale business unit, co-headed by Nakashima, posted a 558.5 billion yen ($3.77 billion) consolidated net business profit for the year ended March 31. Although it achieved year-on-year growth, its customer base pales beside that of Mizuho Financial Group, which does business with roughly 70% of Japan's listed companies.
While such others as Mitsubishi UFJ Financial Group are honing their ability to appeal to businesses by integrating banking, trust and securities operations, SMFG is relatively weak in trusts.
"I want to restrengthen our domestic business," Nakashima said.
He also emphasized the importance of the group's three-year management plan, which began this fiscal year and also targets a bottom-line profit of more than 1 trillion yen in fiscal 2028.
"I worked together with Mr. Ohta to create that plan as his chief strategy officer and CFO," he said.
Sumitomo Mitsui Financial Group has named Deputy President Toru Nakashima as its next president and group CEO, choosing a manager with extensive political and government connections to succeed Jun Ohta, who died this past Saturday.
Nakashima was already acting president and acting group CEO. The permanent appointments were approved by SMFG's board on Thursday and take effect Friday.
"I would like to maintain the positive trend [of strong earnings] and lead the group to even greater heights," Nakashima told a news conference Thursday.
Nakashima served as group chief financial officer for four years starting in fiscal 2019, supporting Ohta at the helm. He had long been favored to succeed Ohta, who had recommended him by name.
At the news conference, Nakashima expressed his intention to continue Ohta's legacy. "I'd like to tell our employees that we will carry on with Mr. Ohta's wishes and that this will be our way of honoring him," he said.
Takeshi Kunibe remains chairman without representative rights.
"I want him to apply his logical, scientific way of thinking to management," Kunibe said of Nakashima at the news conference.
A graduate of the University of Tokyo's Faculty of Engineering, Nakashima will be SMFG's first head with a background in the sciences.
Nakashima's career has centered on business planning, a core function of management. He was also involved in negotiating the merger between the former Sumitomo Bank and Sakura Bank that created Sumitomo Mitsui Banking Corp.
SMBC is known for its extensive dealings with smaller and midtier companies. But Nakashima since April had been in charge of business with large corporations.
"Looking at [Japan's] top three banks, it's difficult to say we do enough business with big domestic companies," Nakashima said Thursday of the challenges ahead.
The wholesale business unit, co-headed by Nakashima, posted a 558.5 billion yen ($3.77 billion) consolidated net business profit for the year ended March 31. Although it achieved year-on-year growth, its customer base pales beside that of Mizuho Financial Group, which does business with roughly 70% of Japan's listed companies.
While such others as Mitsubishi UFJ Financial Group are honing their ability to appeal to businesses by integrating banking, trust and securities operations, SMFG is relatively weak in trusts.
"I want to restrengthen our domestic business," Nakashima said.
He also emphasized the importance of the group's three-year management plan, which began this fiscal year and also targets a bottom-line profit of more than 1 trillion yen in fiscal 2028.
"I worked together with Mr. Ohta to create that plan as his chief strategy officer and CFO," he said.
- December 1, 2023
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