Sumitomo Mitsui CEO Jun Ohta Has Passed Away

Jun Ohta, the Chief Executive Officer of Sumitomo Mitsui Financial Group Inc., known for his assertive global expansion strategies during his four-year tenure at Japan’s second-largest bank, has passed away at the age of 65.

The Tokyo-based institution confirmed Ohta’s passing on Saturday, attributing it to pancreatic cancer, as communicated by a spokesperson on Monday.

Concerns about Ohta’s health arose earlier this month when he was absent from an earnings briefing, which the bank attributed to health issues. In the interim, Deputy President Toru Nakashima has assumed the responsibilities of the CEO. The company plans to designate and announce a successor in due course.

With prior experience as a mid-level manager in Singapore, Ohta advocated for expanding comprehensive banking services in key Asian markets during his tenure. He oversaw substantial investments in Jefferies Financial Group Inc. to bolster Sumitomo Mitsui’s investment banking presence in the United States.

Emphasizing that “banking is a GDP business” in several interviews, Ohta highlighted the correlation between the company’s prosperity and the economic growth of home countries. To this end, Sumitomo Mitsui focused on four key Asian nations—Indonesia, India, Vietnam, and the Philippines—as primary markets for investment. While the domestic economy in Japan faced sluggish growth and intermittent deflation, the bank allocated billions across these regions under Ohta’s leadership.

A former college American football player, Ohta was recognized within the industry for his straightforwardness and unpretentious demeanor. He implemented a more relaxed office dress code and encouraged younger employees to initiate in-house startups, leaving behind a legacy that is expected to persist, according to Toyoki Sameshima, an analyst at SBI Securities Co. in Tokyo.

Under Ohta’s leadership since April 2019, Sumitomo Mitsui’s stock has soared by more than 90%, rising 42% this year alone. The bank revised its net income forecast to 920 billion yen ($6.2 billion) for the fiscal year ending in March, marking a record. Plans for stock repurchases of up to 150 billion yen were also announced.

Despite these accomplishments, Ohta’s tenure witnessed setbacks, notably a probe into block trading at SMBC Nikko Securities Inc., the group’s investment banking arm, resulting in market manipulation findings earlier this year. Some former executives remain on trial, and Ohta accepted a six-month pay cut in response.

Concurrently, Ohta prioritized bolstering the bank’s digital initiatives, solidifying an alliance with SBI Holdings Inc. by acquiring a stake in Japan’s largest online brokerage to attract younger, tech-savvy clientele.

In March, Sumitomo Mitsui launched an all-in-one mobile app offering rewards to attract users. Ohta anticipated that as Japan’s interest rates increase, the bank’s size and deposits would confer significant advantages for its profits.

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