Japanese giant Sumitomo Mitsui Financial Group (SMFG) has become the third Japanese firm in less than a fortnight to unveil plans to open a business in Germany that will act as its EU hub following Brexit.

The company, which has the headquarters for its European operations in London, announced that both its main banking business and its investment banking division would set up subsidiaries in Frankfurt.

SMFG said it was taking the step because it believed it “could face future restrictions in certain services it provides” after Brexit and that establishing subsidiaries in the German city would ensure that it “can continue offering banking services to clients with no disruption once the UK leaves the EU”.

It joins Nomura and Daiwa, two other large Japanese securities groups with big EU businesses based in London, in unveiling plans to open subsidiaries in Frankfurt, a process that will require them to apply for banking licences from the German regulator. Daiwa announced its move on June 22 and Nomura followed just days later.