With a balance sheet of over $ 2,000 billion, Sumitomo Mitsui Banking Corp is one of the world’s largest commercial lenders, generally ranking 12-14 among the world’s largest banks, near Citigroup and Wells Fargo.
It has the ambition to develop again outside its home market, targeting Asia, in particular Indonesia, the Philippines, Vietnam and India, as well as the United States.
In March, it paid $ 384 million for 4.9% of Ares, a large non-bank lender that finances mid-sized US companies. In May, SMBC announced its goal of increasing its share of underwriting quality US bonds and moving from its current spot to No. 15 in the top 10 ranking.
However, this seems like a bad time to expand lending in overseas markets.
Even a determined fiscal and monetary policy response and good news on vaccines still leaves open the possibility of permanent damage to many sectors and businesses, more defaults to come and probably lower recovery rates.
There was no model for such a sudden and complete disruption
Sean Hunter, OakNorth
Lenders wishing to grow are always faced with the risk of negative selection: they will gain all the new customers that local banks – who know the territory much better – will not lend.