SMFG Cools on Acquisitions as Banking Giant Sets New Profit Goal

Sumitomo Mitsui Financial Group Inc. is targeting profits to increase by about a third as it seeks growth without large acquisitions, a shift from its appetite for deals that had driven billion-dollar transactions in recent years.

Japan’s second-largest lender is aiming for ¥2 trillion ($12.5 billion) in profit and a 13% return on tangible equity in three years, Chief Executive Officer Toru Nakashima said in an interview. To achieve that, the banking giant that has snapped up targets from India to Vietnam is looking to build on areas such as sales and trading through its tie-up with Jefferies Financial Group Inc. and transaction banking.