Sumitomo Mitsui Financial Group Considers Increasing Jefferies Stake to 20%

Sumitomo Mitsui Financial Group is considering increasing its stake in Jefferies to around 20%. The move follows the Japanese financial institution's acquisition of a 2.6% stake in the US investment bank last year. As a major player in the global financial market, Sumitomo Mitsui Financial Group aims to expand its presence in the US and strengthen its position in the global financial landscape.

Sumitomo Mitsui Financial Group (SMFG), a major player in the global financial market, is considering a significant increase in its stake in Jefferies, a prominent US investment bank. The Japanese financial institution recently acquired a 2.6% stake in Jefferies last year and is now reportedly exploring the possibility of boosting its holding to around 20% Ascent Group LLC Takes $235,000 Position in Sumitomo Mitsui Financial Group Inc $SMFG^[1].

The move is part of SMFG's broader strategy to expand its presence in the US and strengthen its position in the global financial landscape. By increasing its stake in Jefferies, SMFG aims to gain a more influential role in the US financial sector, leveraging the bank's extensive network and expertise.

SMFG's decision to increase its stake in Jefferies comes amidst a series of strategic acquisitions and investments in other financial institutions. In the first quarter of 2025, SMFG purchased 15,205 shares of Sumitomo Mitsui Financial Group Inc (NYSE:SMFG) valued at approximately $235,000, indicating a growing interest in its own stock Ascent Group LLC Takes $235,000 Position in Sumitomo Mitsui Financial Group Inc $SMFG^[1]. Additionally, several hedge funds have recently increased their positions in SMFG, with Lindbrook Capital LLC raising its stake by 3.8% and D Orazio & Associates Inc. raising it by 8.5% Ascent Group LLC Takes $235,000 Position in Sumitomo Mitsui Financial Group Inc $SMFG^[1].

The potential increase in SMFG's stake in Jefferies is also supported by recent analyst upgrades. Nomura Securities, Wall Street Zen, and Zacks Research have all upgraded SMFG shares to a "strong-buy" rating, with two analysts rating the stock as a "strong-buy" Ascent Group LLC Takes $235,000 Position in Sumitomo Mitsui Financial Group Inc $SMFG^[1].

The current financial performance of SMFG is also encouraging. The company reported $0.40 earnings per share for the quarter, topping analysts' consensus estimates of $0.31 by $0.09. The firm had revenue of $16.41 billion for the quarter, compared to analysts' expectations of $1,094.67 billion Ascent Group LLC Takes $235,000 Position in Sumitomo Mitsui Financial Group Inc $SMFG^[1].

In addition to its strategic investments, SMFG has been active in cross-border transactions. Recently, State Bank of India (SBI) completed the divestment of a 13.18% stake in Yes Bank Limited (YBL) to Sumitomo Mitsui Banking Corporation (SMBC), a significant cross-border investment in the Indian banking sector SBI completes divestment of 13.18% stake in Yes Bank Limited (YBL) to Sumitomo Mitsui Banking Corporation (SMBC)^[2].