Barclays is ending a partnership with a Japanese firm established six years ago. Under the agreement, about 20 private bankers will go across from the UK-listed lender.

Japan’s Sumitomo Mitsui Financial Group is to hire about 20 private bankers from UK-listed Barclays in the Asian country as the two companies bring a six-year alliance to an end. 

“Barclays’ Wealth business, Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities Inc. (Nikko) have agreed to change the Japan Joint Venture we started in July 2010. 
“From 4 April 2017, SMBC and Nikko will take control of the business, while Barclays will work with them under a service agreement, continuing to provide products and services to clients,” Barclays told this publication in an emailed statement. 

“The change to the structure of the joint venture is consistent with Barclays’ global business plan announced in early 2016 that focuses our Asia business on the areas where our international reach gives us a competitive advantage. Barclays has had a significant presence in Asia for close to 50 years, and our strategy ensures that we will be an even stronger player in the region in the years ahead,” it added. 

Barclays has already sold off its private bank in Hong Kong and Singapore, as part of restructuring moves that have also seen it scale back its Africa business.

The business will pay up to $104 million to Barclays to end the partnership, Bloomberg reported. 

The Japanese bank plans to hire more wealth managers from competitors and transfer employees from other divisions to strengthen the operation, the firm was quoted as saying. Barclays will continue to provide Sumitomo Mitsui with financial products for its wealth business.

This publication attempted to reach SMFG for further details, and will update in due course.