SMBC – Like a Phoenix from the Ashes

Tough times remain for the shipping financiers in Asia. Although companies in Asia tend to reply on bank borrowings to raise capital, the global liquidity glut especially in this region has not only intensified competition among the usual players but has also attracted new entrants to the ship finance arena particularly in debt financing amid the current buoyant shipping market. Margins have been going down the slope and in order to stay on top of the game, banks are on their toes and rethinking their strategies.

To increase their profit margins, some banks choose to focus on the emerging markets and do businesses with lesser-known clients. Others set sights on top tier shipping companies, working hard to come up with products tailored to their needs while identifying cross selling opportunities. Some are all out to underbid their competitors to build brand awareness and increase market share. Others are simply out of the market, waiting for the conditions to improve.

From our earlier pages, you would have probably noticed that Sumitomo Mitsui Banking Corporation (SMBC)’s strategy appears to be doing extremely well in this challenging environment. The bank’s shipping portfolio size in 2006 is ranked fifteenth in our latest league table and the bank has clinched a commendable seventh position in Dealogic’s bookrunner table on syndicated shipping loans for 2006. As one of the few Asian banks that shine in the spotlight when it comes to ship financing, Marine Money pries into SMBC’s mind to find out its formula for success in this exclusive article.

This is only an excerpt of SMBC – Like a Phoenix from the Ashes

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