TOKYO, July 8 (Reuters) - Sumitomo Mitsui Financial Group expects its acquisition of Citigroup's Japanese brokerage to contribute as much as 40 billion yen ($424 million) a year to its earnings, the president of Japan's third-largest bank said on Wednesday.
The bank will also discuss the details of a possible alliance with Daiwa Securities Group once the brokerage completes a recently announced share offering, Teisuke Kitayama told the Reuters Japan Investment Summit.
SMFG bought Citigroup's Japanese broker and key investment banking units in May.
"The contribution of Nikko Cordial ... we estimate to be around 35 billion to 40 billion yen," Kitayama said.
However, on a net basis the bank is expecting an annual net profit contribution of about 20 to 30 billion yen, he said. (Reporting by David Dolan and Taro Fuse; Editing by Hugh Lawson)