Profits could be slashed by up to $900,000 over the next three years.
In the era of negative interest rates, Japan’s second-largest bank finds itself having to run just to stand still, according to Bloomberg.
"Takeshi Kunibe, who took over as chief executive officer at Sumitomo Mitsui Financial Group Inc. in April, has set a new net-income target of about 700 billion yen ($6.3 billion) in the year ending March 2020. That’s roughly the same as in the latest 12-month period. With negative rates, diminishing loan margins and higher foreign-currency costs expected to shave about 100 billion yen off profit over the next three years, Kunibe finds himself with no choice but to intensify an overseas expansion," added Bloomberg.
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