Sumitomo Mitsui Financial Group Inc. has agreed to buy Nikko Cordial Securities Inc. and part of Nikko Citigroup Ltd. from troubled U.S. financial giant Citigroup Inc. for ¥545 billion, the two sides reported Friday.

The purchase of the brokerage operations is seen as a move by SMFG to close the gap on industry leader Nomura Holdings Inc.

Industry experts noted SMFG is the first Japanese bank to buy a major brokerage.