Societe Generale Strengthens Japan Operations with Key Hires
Societe Generale is bolstering its presence in Japan by making strategic hires aimed at capitalizing on the country’s booming bond market and the local banking sector’s growing appetite for higher-yield investments. Four senior salesmen are joining the French lender’s Tokyo securities unit, demonstrating the bank’s commitment to expanding its Japanese operations.
Leading the Charge: A Focus on Interest-Rate Offerings
Isao Sam Namba, formerly at NatWest Group Plc, is among the new recruits. Namba will lead a newly formed department focused on selling interest-rate products, leveraging his extensive experience and strong relationships with hedge funds and other global investors.
“One of our strategic priorities is strengthening our Japan business,” said Tomoyuki Sasai, head of global markets sales at Societe Generale, confirming the appointments.
Sasai highlighted Namba’s ability to tap into overseas demand for Japanese government debt, a key area of growth for the bank. He added that more people will be hired next year to sell interest-rate products to Japanese customers, reflecting the bank’s commitment to expanding its reach in the domestic market.
Tapping into Regional Bank Demand: A Strategic Move
Also joining the team is Akihide Kobayashi from UBS Group AG. He will focus on overseeing sales of structured products and other assets to regional lenders in Japan. There is a significant demand for bankers with strong ties to these smaller institutions, which are seeking high-yielding assets to boost returns in light of limited improvements in Japanese lending margins.
Takayuki Endo, a former Mitsubishi UFJ Morgan Stanley Securities Co. banker, will be leading sales of non-yen bonds under Namba’s guidance. Adding to this robust team is Kei Ohara, who arrives from Goldman Sachs Group Inc. and will join the financial institution cross-assets solutions team. Ohara will specialize in marketing products to insurers, distributors, and asset management companies, broadening Societe Generale’s reach across diverse sectors within the Japanese financial landscape.
Global Trend: Japan’s Appeal to International Banks
These hires come at a time of increasing activity among international banks in Japan. The country’s emergence from decades-long deflation has fueled a bond trading boom. JPMorgan Chase & Co. recently hired a former Goldman Sachs Group Inc. banker to led yen rates trading in Tokyo, further underscoring the attractiveness of the Japanese market for international financial institutions.
Societe Generale Scales Back Globally, Doubles Down on Japan: A Strategic Shift
The move comes after Societe Generale cut hundreds of jobs at its Paris headquarters and divested certain units as Chief Executive Officer Slawomir Krupa focuses on profitability and streamlining operations. Krupa’s strategy involves streamlining the bank’s operations and concentrating on its most profitable areas, a move that has seen the departure of several top managers in a bid to improve performance. These new hires signal a strategic shift for Societe Generale, indicating its intent to double down on the promising Japanese market while streamlining its global presence.
(The bank’s Japan securities subsidiary reported a 37% growth in net income last year, reaching ¥5.4 billion, the highest in three years. This success stemmed from strong performance in bond trading. The subsidiary celebrated its 50th anniversary in Japan last year and employed 214 people at the end of December 2023, up from 200 a year earlier.)
What is the main reason for Société Générale’s expansion in Japan?
## Societe Generale Doubles Down on Japan
**Interviewer:** Welcome to the show. Today we are joined by Tomoyuki Sasai, head of global markets sales at Societe Generale, to discuss the bank’s exciting expansion in Japan. Tomoyuki, thanks for being here.
**Tomoyuki Sasai:** My pleasure.
**Interviewer:** Societe Generale just announced a series of key hires for its Tokyo securities unit. Can you tell us more about these appointments and what they signify for the bank’s strategy in Japan?
**Tomoyuki Sasai:** Absolutely. Japan’s bond market is vibrant and there is a growing demand for higher-yield investments, particularly among regional banks. We see tremendous opportunities here. These hires, four highly experienced salesmen, demonstrate our commitment to strengthening our presence and capturing this growth.
**Interviewer:** You mentioned the booming bond market.
Is this the primary driver behind this expansion, and what specific areas are you targeting?
**Tomoyuki Sasai:** The bond market is definitely a key focus. Our new team, led by Isao Sam Namba, will be focusing on selling interest-rate products, tapping into overseas demand for Japanese government debt. We believe that is a key area for growth.
**Interviewer:** What about the domestic market?
**Tomoyuki Sasai:** Equally important.
We are also actively expanding our reach within Japan by hiring more talent to sell interest-rate products directly to Japanese customers. In addition, Akihide Kobayashi will be focusing on sales of structured products to regional lenders, addressing their specific needs for higher-yield investments.
**Interviewer:** This sounds like a multifaceted approach.
**Tomoyuki Sasai:** It is.
We are building a team with diverse expertise who understand the intricacies of the Japanese market. Takayuki Endo’s focus on non-yen bonds and Kei Ohara’s analytical skills from Goldman Sachs will further strengthen our capabilities in this dynamic landscape.
**Interviewer:** Tomoyuki, thank you for shedding light on Societe Generale’s exciting expansion in Japan.
We look forward to seeing the impact of these strategic hires in the coming months and years.
