Sumitomo Mitsui Financial : Earnings Document

November 14, 2022

Sumitomo Mitsui Financial Group, Inc.

Consolidated Financial Results for the six months ended September 30, 2022

Head Office: 1-2, Marunouchi 1-chome,Chiyoda-ku, Tokyo, Japan

Stock Exchange Listings: Tokyo Stock Exchange, Nagoya Stock Exchange, New York Stock Exchange

URL: https://www.smfg.co.jp/english/

President: Jun Ohta

Quarterly Securities Report (Shihanki hokokusho) issuing date: November 29, 2022

Dividend payment date: December 2, 2022

Investors meeting presentation for quarterly financial results: Scheduled

Note: Amounts less than one million yen have been rounded down.

1. Consolidated financial results (for the six months ended September 30, 2022)

1. Operating results

(Millions of yen, except per share data and percentages)

			Ordinary income		Ordinary profit	Profit attributable to
				owners of parent
Six months ended September 30, 2022		¥ 2,916,911	48.4 %		¥ 726,071	15.2 %	¥ 525,427	15.2 %
Six months ended September 30, 2021		1,965,482	0.8		630,028	81.9	456,068	68.8
Notes: 1. Comprehensive income:
(a) for the six months ended September 30, 2022:	¥	705,361	million [ 14.7%]
(b) for the six months ended September 30, 2021:	¥	614,901	million [(11.0)%]

2. Percentages shown in ordinary income, ordinary profit, profit attributable to owners of parent and comprehensive income are the increase (decrease)

from the same period in the previous fiscal year.
		Earnings per share		Earnings per share
			(Diluted)
Six months ended September 30, 2022		¥ 383.23		¥ 383.10
Six months ended September 30, 2021		332.74		332.59
(2) Financial position
				(Millions of yen, except percentages)
		Total assets		Net assets	Net assets ratio
As of September 30, 2022		¥ 271,748,777		¥ 12,760,842	4.7 %
As of March 31, 2022		257,704,625		12,197,331	4.7
Notes: 1. Stockholders' equity:
(a) as of September 30, 2022: ¥ 12,652,776 million	(b) as of March 31, 2022: ¥	12,098,215 million

2. Net assets ratio = {(Net assets - stock acquisition rights - non-controlling interests) / total assets} X 100

2. Dividends on common stock

					(Yen)
		Cash dividends per share
	1st quarter	2nd quarter	3rd quarter	4th quarter	Annual
Fiscal year ended March 31, 2022	¥ ―	¥ 105.00	¥ ―	¥ 105.00	¥ 210.00
Fiscal year ending March 31, 2023	―	115.00
Fiscal year ending March 31, 2023 (Forecast)			―	115.00	230.00

Note: Dividend forecast which was announced in May 2022 is revised.

3. Earnings forecast on a consolidated basis (for the fiscal year ending March 31, 2023)

(Millions of yen, except per share data and percentage)

	Profit attributable to owners of parent	Earnings per share
Fiscal year ending March 31, 2023	¥ 770,000	9.0 %	¥ 580.35

Notes: 1. Earnings forecast which was announced in May 2022 is revised.

1. Percentage shown in profit attributable to owners of parent is the increase (decrease) from the previous fiscal year.
2. Forecasted earnings per share is calculated by dividing forecasted profit attributable to owners of parent by the number of issued common stocks (excluding treasury stocks) as of September 30, 2022. The Board of Directors resolved on November 14, 2022 to repurchase its own shares, and the number of issued common stocks (excluding treasury stocks) is taking into account the impact of repurchase of its own shares.

• Notes

1. There were no changes in material consolidated subsidiaries in the period.
2. Changes in accounting policies, changes in accounting estimates and restatements

(a) Changes in accounting policies due to application of new or revised accounting standards	: Yes
(b) Changes in accounting policies due to reasons other than above (a)	: No
(c) Changes in accounting estimates	: No
(d) Restatements	: No

Note: For more details, see page 2 "1. Matters related to summary information (Note)."

(3) Number of shares issued (common stocks)

As of September 30, 2022

As of March 31, 2022

(a) Number of shares issued (including treasury stocks)

1,374,691,194 shares

1,374,362,102 shares

(b) Number of treasury stocks

3,466,127 shares

3,542,321 shares

Six months ended

Six months ended

September 30, 2022

September 30, 2021

(c) Average number of shares issued in the period

1,371,054,006 shares

1,370,657,068 shares

(Summary of financial information on a non-consolidated basis)

Non-consolidated financial results (for the six months ended September 30, 2022)

(1) Operating results

(Millions of yen, except per share data and percentages)

Operating income

Operating profit

Ordinary profit

Net income

Six months ended

September 30, 2022

¥ 181,031

26.0 %

¥

47,872

9.1 %

¥

44,467

16.1 %

¥ 47,421

13.2 %

September 30, 2021

143,717

(13.0)

43,883

(37.3)

38,309

(41.4)

41,886

(37.8)

Earnings

per share

Six months ended

September 30, 2022

¥

34.59

September 30, 2021

30.56

Note: Percentages shown in operating income, operating profit, ordinary profit and net income are the increase (decrease) from the same period in the previous year.

(2) Financial position

				(Millions of yen, except percentages)
	Total assets		Net assets		Net assets ratio
As of September 30, 2022	¥ 16,943,793		¥ 6,003,138		35.4 %
As of March 31, 2022	16,253,088		6,105,832		37.6
Note: Stockholders' equity:
(a) as of September 30, 2022: ¥ 6,001,937 million	(b) as of March 31, 2022: ¥ 6,104,357 million

[Note on interim audit procedures]

This report is out of the scope of the interim audit procedures.

This document contains "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of Sumitomo Mitsui Financial Group, Inc. ("the Company") and its management with respect to the Company's future financial condition and results of operations. In many cases but not all, these statements contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "probability," "risk," "project," "should," "seek," "target," "will" and similar expressions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward- looking statements contained or deemed to be contained herein. The risks and uncertainties which may affect future performance include: deterioration of Japanese and global economic conditions and financial markets; declines in the value of the Company's securities portfolio; incurrence of significant credit-related costs; the Company's ability to successfully implement its business strategy through its subsidiaries, affiliates and alliance partners; and exposure to new risks as the Company expands the scope of its business. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the date of this document. The Company undertakes no obligation to update or revise any forward-looking statements. Please refer to the Company's most recent disclosure documents such as its annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as its earnings press releases, for a more detailed description of the risks and uncertainties that may affect its financial conditions, its operating results, and investors' decisions.

Sumitomo Mitsui Financial Group, Inc.

		Table of contents
1.	Matters related to summary information (Note)	2
	Changes in accounting policies due to application of new or revised accounting standards	2
2.	Consolidated financial statements	3
	(1)	Consolidated balance sheets	3
	(2)	Consolidated statements of income and consolidated statements of comprehensive income	4
	(3)	Consolidated statements of changes in net assets	5
	(4)	Note on going concern	7

Appendix: Financial results for the six months ended September 30, 2022 supplementary information

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Sumitomo Mitsui Financial Group, Inc.

1. Matters related to summary information (Note)

Changes in accounting policies due to application of new or revised accounting standards

Application of Implementation Guidance on Accounting Standard for Fair Value Measurement

The Company applied "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No.31, June 17, 2021) from the beginning of the period for the six months ended September 30, 2022. In accordance with the transitional treatment set forth in Paragraph 27-2 of Implementation Guidance on Accounting Standard for Fair Value Measurement, the Company has prospectively adopted the new accounting policy set forth in Implementation Guidance on Accounting Standard for Fair Value Measurement. There are no effects on consolidated financial statements due to the application of the Implementation Guidance.

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Sumitomo Mitsui Financial Group, Inc.

2. Consolidated financial statements

(1) Consolidated balance sheets

			Millions of yen
		March 31, 2022			September 30, 2022
Assets:
Cash and due from banks	¥	74,792,123	¥	70,792,739
Call loans and bills bought		1,965,134				6,966,151
Receivables under resale agreements		6,035,507				4,939,894
Receivables under securities borrowing transactions		5,649,632				5,164,745
Monetary claims bought		5,370,377				5,750,967
Trading assets		7,351,878				9,457,976
Money held in trust		310				9,698
Securities		38,538,724				32,550,380
Loans and bills discounted		90,834,056				100,873,464
Foreign exchanges		2,812,104				2,867,296
Lease receivables and investment assets		228,608				232,348
Other assets		10,175,873				15,309,545
Tangible fixed assets		1,457,254				1,545,628
Intangible fixed assets		898,817				927,683
Net defined benefit asset		623,045				642,198
Deferred tax assets		66,720				94,666
Customers' liabilities for acceptances and guarantees		11,722,239				14,425,845
Reserve for possible loan losses		(817,784)				(802,454)
Total assets	¥	257,704,625			¥	271,748,777
Liabilities:
Deposits	¥	148,585,460	¥	157,082,471
Negotiable certificates of deposit		13,069,796				14,513,066
Call money and bills sold		1,129,999				1,157,518
Payables under repurchase agreements		19,359,965				16,409,654
Payables under securities lending transactions		1,580,580				1,155,189
Commercial paper		1,866,366				2,161,263
Trading liabilities		6,377,968				8,630,950
Borrowed money		18,877,990				11,977,900
Foreign exchanges		1,216,893				1,576,112
Short-term bonds		442,000				317,000
Bonds		9,808,107				10,595,969
Due to trust account		2,443,873				2,354,852
Other liabilities		8,415,621				16,251,302
Reserve for employee bonuses		89,894				57,076
Reserve for executive bonuses		4,064				―
Net defined benefit liability		40,864				36,224
Reserve for executive retirement benefits		1,087				995
Reserve for point service program		25,000				27,227
Reserve for reimbursement of deposits		5,767				2,846
Reserve for losses on interest repayment		135,084				117,817
Reserves under the special laws		3,902				3,902
Deferred tax liabilities		275,570				103,612
Deferred tax liabilities for land revaluation		29,193				29,132
Acceptances and guarantees		11,722,239				14,425,845
Total liabilities		245,507,293				258,987,935
Net assets:
Capital stock		2,341,878				2,342,537
Capital surplus		693,664				694,052
Retained earnings		6,916,468				7,297,926
Treasury stock		(13,402)				(13,116)
Total stockholders' equity		9,938,608				10,321,399
Net unrealized gains (losses) on other securities		1,632,080				960,324
Net deferred gains (losses) on hedges		(80,061)				42,636
Land revaluation excess		36,320				36,307
Foreign currency translation adjustments		450,143				1,179,188
Accumulated remeasurements of defined benefit plans		121,123				112,919
Total accumulated other comprehensive income		2,159,606				2,331,376
Stock acquisition rights		1,475				1,201
Non-controlling interests		97,641				106,864
Total net assets		12,197,331				12,760,842
Total liabilities and net assets	¥	257,704,625			¥	271,748,777

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