Interview transcript: Koichi Miyata, President and CEO, Sumitomo Mitsui Financial Group, Part 2
Koichi Miyata, President and CEO of SMFG discusses the group’s overseas’ growth, building an international consumer credit business, and the essence of a bank. August 30, 2012 | Editorial1. SMFG’s overseas growth Emmanuel Daniel (ED): What is your exposure to Europe at the moment? Is it correct to say that whether it’s in Asia, the Americas, or Europe, your real interest is in the emerging markets? Koichi Miyata (KM): Two or three years ago, our overseas portfolio was very simple and easy to understand – one-third from Asia, one-third from the Americas and one-third from Europe, the Middle East and Africa (EMEA). Now, the proportion had changed, with more than 40% from Asia, one-third from the Americas, whilst the EMEA has shrunk to about one quarter of the overall portfolio. ED: What is your target for fee-based revenue? KM: The goal is not something that we have been very explicit about today. The rough estimate is about 30%. The components of the fee business would be, of course fees and commissions generated out of the banking business. Other components would comprise the non-banking entities that need to work hard for further growth. These would be SMBC Nikko Securities, our brokerage business, the card business and the lease business. We have relationship with customers that can be served by non-banking entities in a great variety of business areas. ED: Fees also means costs in terms of technology and infrastructure. Where are you in terms of your cost income ratio? You need to reduce your cost income ratio, but you still need to invest in technology. How are you managing it? KM: The unique features of SMFG entities are that the majority of these group companies are 100% owned subsidiaries of SMFG. This means that we have a good... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
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