Sumitomo Mitsui Trust Bank Ltd (SMTB) is expected to shut down its Hong Kong branch by June 2026, with most client operations to be relocated to its Singapore office, according to sources familiar with the decision.
The Hong Kong branch, which currently oversees general corporate lending, shipping finance and aviation finance, has reportedly struggled amid intensifying competition from international banks, making it increasingly difficult to sustain operations.
The same sources also stated that a separate subsidiary in Hong Kong, engaged in investment advisory services, will remain operational. This unit will continue to address the ongoing demand for asset management, they said.
The move marks a shift in strategy for the Japanese lender, which opened the Hong Kong branch in August 2013 to cover clients in Northeast Asia. That role had previously been managed by the Singapore office. The branch was SMTB’s first new overseas outlet following the merger that formed the bank in April 2012.
A spokesperson for SMTB declined to comment on the development, which was earlier reported by Sing Tao Daily, citing unnamed individuals.
Bloomberg
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