Market Chatter: Sumitomo Mitsui Expands Loan Risk Transfer Efforts to Boost Returns

MT Newswires Live06-04

Sumitomo Mitsui Banking is increasingly leveraging loan portfolio sales and synthetic risk transfers to optimize capital deployment and improve returns, Bloomberg News reported, citing Asia-Pacific Deputy Head Carsten Stoehr.

The banking unit of Sumitomo Mitsui Financial (TYO:8316) is accelerating loan distribution and placing greater emphasis on fee-based income to generate revenue without consuming as much capital, according to the report.

The strategy reportedly supports the group's goal of raising the return on tangible equity to 15% over the next five years, up from 11.4% in the previous fiscal year.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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