[Company analysis] Sumitomo Mitsui Trust Holdings, Inc. (三井住友トラスト・ホールディングス)

「Sumitomo Mitsui Trust Holdings, Inc. (三井住友トラスト・ホールディングス)」is a holding company that owns「Sumitomo Mitsui Trust Bank(三井住友信託銀行)」which is the only megatrust bank in Japan. Like「Sumitomo Mitsui Financial Group(三井住友フィナンシャルグループ)」, this bank belongs to「Mitsui Group」and「Sumitomo Group」, but there is no direct capital relationship. The number of consolidated employees is approximately 20,890.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Sumitomo Mitsui Trust Holdings, Inc.
Company name (Japanese)	三井住友トラスト・ホールディングス
Date of establishment	Friday, February 1, 2002
Headquarters location	〒100-6611 東京都千代田区丸の内一丁目4番1号
Capital	261,608
Consolidated sales	1,467,916
Consolidated operating profit	256,411
Consolidated total assets	57,029,113
Consolidated capital	2,730,356
Capital adequacy ratio	4.8%
Consolidated number of employees	20,890

 

 

 

2. Summary and Features

 
「Sumitomo Trust Bank(住友信託銀行)」did not participate in any M&A even though there was business restructuring trend in 2000s. In the meantime, May 2004,「UFJ Holdings」which owns「UFJ Trust Bank」confronted business crisis, so「Sumitomo Trust Bank」prepared this merger. But this negotiation was cancelled by a one-sided notification from UFJ side. Instead of aforesaid M&A,「UFJ Holdings」choose「Mitsubishi Financial」and consequantly, 「Mitsubishi UFJ Financial Group(三菱UFJフィナンシャル・グループ)」was established.

After that,「Sumitomo Trust Bank」envisioned a business integration with「Mitsui Trust Holdings(三井信託銀行)」, and in 2005, the negotiation was proceeded to just before the agreement. But both could not agreed with the conditions such as personnel management and merger ratio, etc. And all of sudden, Subprime mortgage crisis of 2008 appears, in order to improve operational efficiency due to scale expansion, both companies finally agreed that business integration. This is the begining of current「Sumitomo Mitsui Trust Bank」, the only megatrust bank in Japan.

As a trustee,「Sumitomo Mitsui Trust Bank」has the largest scale in Japan and it is mainly engaged in pension, asset management services. For individual customers, this bank provide asset management services, but for corporate customers, they provide consulting services and M & A related services.

As an aside, the relationship between「Sumitomo Mitsui Trust Holdings」and「Sumitomo Mitsui Financial Group」is not so good.  Although both companies conduct some cooperation on an individual business level, there is no affiliated service at all. Even「Sumitomo Mitsui Financial Group」operates a separate trust bank called「SMBC Trust Bank」which is a direct competitor of「Sumitomo Mitsui Trust Bank」. Regarding the withdrawal of「City Bank」from Japan,「Sumitomo Mitsui Trust Holdings」purchased credit card division of the「City Bank」for about ¥ 40 billion and strengthened its own credit card division. Meanwhile,「Sumitomo Mitsui Financial Group」purchased the retail division of「City Bank」through「SMBC Trust Bank」and strengthened its own trust division. In other words, they are expanding their business in the direction of a head-on collision between the two!

 

 

 

3. Major Business

 

■ Bank business

 

 

 

4. Financial information

 

※Unit is JPY million

	2016	2017	2018
Consolidated sales	1,261,272	1,350,946	1,467,916
Consolidated operating profit	196,383	232,661	256,411
Consolidated total assets	65,453,725	68,356,798	57,029,113
Consolidated net assets	2,791,682	2,872,325	2,730,356