Sumitomo Mitsui to open brokerages in New York and London

8 September 2010

Japanese bank Sumitomo Mitsui is planning to open new brokerage divisions in New York, London and Hong Kong.

It is hoped that the new businesses will be up and running by March 31st 2011, reports Bloomberg.

Sumitomo Mitsui's securities unit Nikko Cordial will be responsible for running the global units.

The bank is looking to expand its brokerage operations after bringing an end to capital alliances with Goldman Sachs and Daiwa Securities.

Takehito Yamanaka, a Tokyo-based analyst at Global FXA Securities, said: "The bank is now on the starting line by setting up the basic overseas franchise.

"We will wait and see whether the bank can actually generate a profit out of the businesses."

Earlier this year, a World Bank report forecast that Japan's economy will grow at a slower rate to that of its east Asian counterparts.

It predicted 2.1 per cent growth in 2011 for Japan, compared to an average 7.8 per cent growth for the developing nations close to it.

By Asim Shah

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