At Sumitomo Mitsui Banking Corp.’s offices in Singapore, changes are unfolding that illustrate a broader strategic pivot taking place at Japan’s biggest banks.

There, recently hired investment bankers led by Asia-Pacific deputy head Carsten Stoehr have been pushing dozens of employees toward more complex financing deals to increase profitability.

Since Stoehr arrived at the unit of Sumitomo Mitsui Financial Group more than two years ago, the culture and risk appetite have shifted. Rather than just relying on interest income earned from keeping investment-grade loans on its balance sheet, SMBC is now offloading them more quickly and generating fee-based revenue that locks up less capital.