...June 22, 2022 TOKYO (S&P Global Ratings) June 22, 2022--A Sumitomo Mitsui Financial Group Inc. (SMFG) investment in SBI Holdings Inc. would eventually increase revenues of its retail segment if it materializes as reported. Media reports have said SMFG (A-/Stable/--) is in the final stage of negotiations to acquire about a 10% stake in SBI Holdings. Neither financial group has announced a business alliance. However, SBI has strengths in retail securities business, and an alliance would help SMBC Group, of which SMFG is the nonoperating holding company and Sumitomo Mitsui Banking Corp. is the lead bank. The alliance should increase the group's retail segment's revenue over the long term if it eventuates. Major financial institutions, including SMBC Group, want to reach younger customers in their brokerage businesses. An alliance may help SMBC Group in such efforts, including broadening its customer base, improving convenience to customers, and acquiring potential future customers. However,...
