Japanese Banking Giant SMBC Group to Open Second U.S. Headquarters in Charlotte
In a significant move set to bolster the local economy, Japanese financial titan SMBC Group has announced its decision to establish a second U.S. headquarters in Charlotte, North Carolina. This development promises to create 2,000 jobs over six years, as SMBC invests $50.5 million in Mecklenburg County.
North Carolina Governor Josh Stein played a pivotal role in attracting SMBC to the state, following a business development trip to Tokyo where he engaged with company leaders. Expressing his enthusiasm about the announcement, Governor Stein remarked, “Japan is one of North Carolina’s top economic partners, and I’m honored to welcome another leading Japanese company to our state. Charlotte, the second biggest banking center in the United States, will be an ideal home for SMBC’s second North American headquarters as the bank continues to grow.”
SMBC, headquartered in Tokyo and part of the Sumitomo Mitsui Financial Group, Inc. (SMFG), is among Japan’s top three banking institutions. With a presence in nearly 40 countries and over 120,000 employees worldwide, the company offers extensive financial services spanning banking, leasing, securities, credit cards, and consumer finance. The new Charlotte headquarters will support the expansion of various business units and enhance the company’s talent diversity.
“As SMBC continues to grow substantially in the United States, Charlotte is a standout location for us to invest in North Carolina for the long term in a major expansion that will establish our roots in the community,” stated Hirofumi Otsuka, CEO for SMBC Americas. He added that Charlotte’s robust financial services sector and rich talent pool make it an ideal choice for the company’s long-term success and contribution to the local economy.
North Carolina Commerce Secretary Lee Lilley emphasized the importance of this investment, noting, “Charlotte is the premier destination for world-class financial services companies like SMBC to find talent and drive growth. Japanese companies are the top source of foreign direct investment into North Carolina, and SMBC is a welcome addition to the family of Japanese companies that call North Carolina home.”
Wages for the new positions will vary, with an average salary of $165,316, significantly higher than the current Mecklenburg County average wage of $90,706.
The state’s Economic Investment Committee has approved a Job Development Investment Grant (JDIG) to facilitate the project. This grant, expected to increase the state’s economy by $13.4 billion over 12 years, authorizes potential reimbursements to SMBC of up to $70,032,000, contingent on job creation and capital investment targets being met.
The JDIG agreement projects a 170 percent return on investment for public funds, which translates to $2.70 in state revenue for every dollar of potential cost. This ensures positive net tax revenue for North Carolina, even considering the grant’s reimbursements.
Due to the choice of Mecklenburg County, classified as a Tier 3 area, the JDIG agreement includes a provision to allocate $23,344,000 to the state’s Industrial Development Fund – Utility Account. This fund aids rural communities in upgrading infrastructure, thereby attracting future businesses. Even as jobs are created in Tier 3 counties, the additional tax revenue aids economically challenged regions across North Carolina.
N.C. Senator Caleb Theodros expressed pride in welcoming SMBC to the region, saying, “Charlotte is a major center for international commerce, and it’s a point of pride to add the SMBC name to our region’s calling card.” N.C. Representative Becky Carney also expressed readiness to assist the company, stating, “We understand the complexities and needs of the financial services industry, and everyone in Charlotte and Mecklenburg County welcomes SMBC. We stand ready to help this company make connections and expand opportunities for people in our region.”
The North Carolina Department of Commerce, in collaboration with several partners including the Economic Development Partnership of North Carolina, the North Carolina General Assembly, and local educational institutions, worked together to bring this project to fruition.
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