Overview of 3Q FY3/2023
January 30, 2023
Copyright © 2023 Sumitomo Mitsui Financial Group. All Rights Reserved.
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 us and our managements with respect to our 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 our securities portfolio; incurrence of significant credit-related costs; our ability to successfully implement our business strategy through our subsidiaries, affiliates and alliance partners; and exposure to new risks as we expand the scope of our 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. We undertake no obligation to update or revise any forward- looking statements.
Please refer to our most recent disclosure documents such as our annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as our earnings press releases, for a more detailed description of the risks and uncertainties that may affect our financial conditions and our operating results, and investors' decisions.
Exchange rates (TTM)
Dec.21 | Mar.22 | Dec.22 | |
USD | JPY 115.01 | JPY 122.41 | JPY 132.71 |
EUR | JPY 130.51 | JPY 136.81 | JPY 141.43 |
Definitions
SMFG | Sumitomo Mitsui Financial Group, Inc. |
SMBC | Sumitomo Mitsui Banking Corporation |
SMBC Trust | SMBC Trust Bank |
SMFL | Sumitomo Mitsui Finance and Leasing |
SMBC Nikko | SMBC Nikko Securities |
SMCC | Sumitomo Mitsui Card Company |
SMBCCF | SMBC Consumer Finance |
SMDAM | Sumitomo Mitsui DS Asset Management |
SMBCAC | SMBC Aviation Capital |
Major local subsidiaries | SMBC Bank International, SMBC Bank EU, |
SMBC (China) | |
Consolidated | SMFG consolidated |
Non-consolidated | SMBC non-consolidated |
Expenses | Excluding non-recurring losses |
(non-consolidated) | |
Net business profit | Before provision for general reserve for possible |
loan losses | |
Retail Business Unit (RT) | Domestic retail business |
Wholesale Business Unit (WS) | Domestic wholesale business |
Global Business Unit (GB) | International business |
Global Markets Business Unit | Market / Treasury related businesses |
(GM) | |
Copyright © 2023 Sumitomo Mitsui Financial Group. | 2 |
All Rights Reserved. |
Income statement
Progress rate of 1-3Q: Consolidated net business profit 81%, Profit attributable to owners of parent 99% Full-year target remains unchanged considering uncertain global economy.
1-3Q | YoY | FY3/23 | |||||
(JPY bn) | FY3/23 | target | |||||
1 | Consolidated gross profit | 2,377.4 | +195.4 | ||||
2 | G&A expenses | 1,427.7 | +97.3 | ||||
Overhead ratio | 60.1% | (0.9)% | |||||
3 | Equity in gains (losses) | Progress 79.5 | +25.4 | ||||
of affiliates | |||||||
4 | Consolidated | 81% | 1,029.2 | +123.5 | 1,265 | ||
net business profit | |||||||
5 | Total credit cost | 111.1 | (46.6) | 210 | |||
6 | Gains (losses) on stocks | 138.2 | +3.5 | ||||
7 | Other income (expenses) | (23.7) | (8.4) | ||||
8 | Ordinary profit | 1,032.6 | +165.2 | 1,120 | |||
9 | Extraordinary gains (losses) | (2.5) | +2.7 | ||||
10 | Income taxes | 256.5 | +24.2 | ||||
11 | Profit attributable to | 99% | 766.0 | +141.2 | 770 | ||
owners of parent | |||||||
12 | ROE | 10.0% | +1.4% | ||||
Consolidated gross profit: increased YoY due to
- loan growth and related transactions in WS and GB, and
- strong performance of payment business.
Impact of FX: +119
G&A expenses: maintained the same level YoY, excluding
the impact of FX (+66) and consolidation of Fullerton India (+32).
Equity in gains of affiliates: increased YoY mainly due to gains on change in equity of Bank of East Asia.
Impact of FX: +10
Total credit cost: decreased YoY mainly due to the absence of reserves recorded for large borrowers in 3Q FY3/22.
Gains on stocks: increased YoY due to larger gains on sales of strategic shareholdings (108, YoY +33), while ETF sales decreased.
Impact of consolidating Fullerton India (JPY bn)
.
Consolidated gross profit | +40 | Total credit cost | +7 |
G&A expenses | +32 | Profit attributable to | (3) |
(incl. goodwill amortization) | owners of parent |
Consolidated | +8 |
net business profit | |
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All Rights Reserved. |
(Ref.) Group companies
SMBC | Other major group companies | |
1-3Q | YoY | FY3/23 | ||||||
FY3/23 | target | |||||||
(JPY bn) | ||||||||
1 | Gross banking profit | 1,287.9 | +156.7 | |||||
2 | o/w Net interest income | 871.3 | +128.4 | |||||
3 | o/w Gains (losses) on | 31.8 | (6.9) | |||||
cancellation of investment trusts | ||||||||
4 | Domestic | 473.3 | +46.5 | |||||
5 | Overseas | 398.0 | +81.9 | |||||
6 | o/w Net fees and commissions | 336.5 | +60.9 | |||||
7 | Domestic | 146.6 | +10.8 | |||||
8 | Overseas | 189.9 | +50.1 | |||||
9 | o/w Net trading income+ | 78.4 | (32.7) | |||||
Net other operating income | ||||||||
10 | o/w Gains (lossses) on bonds | (77.9) | (95.7) | |||||
11 | Expenses | 653.4 | +23.7 | |||||
12 | Banking profit | 634.4 | +133.1 | 840 | ||||
13 | Total credit cost | 54.3 | (33.5) | 80 | ||||
14 | Gains (losses) on stocks | 127.9 | +45.3 | |||||
15 | Extraordinary gains (losses) | 19.9 | +5.7 | |||||
16 | Net income | 563.7 | +219.2 | 590 | ||||
(left : results of 1-3Q FY3/22 / right : YoY) | |||||||||||||
SMCC | *1 | *2 | |||||||||||
(JPY bn) | SMBCCF | SMBC Nikko | |||||||||||
Gross profit | 331.5 | +27.1 | 208.6 | +3.9 | 188.8 | (124.4) | |||||||
Expenses | 272.8 | +22.4 | 91.2 | +0.9 | 235.2 | (10.6) | |||||||
Net business | 59.0 | +5.1 | 110.4 | (4.1) | (46.4) | (113.8) | |||||||
profit | |||||||||||||
Net income | 26.4 | +1.8 | 55.4 | (6.5) | (41.3) | (88.8) | |||||||
(Equity method affiliate) | |||||||||||||
SMBC Trust | SMDAM | *3 | |||||||||||
50% | SMFL | 50% | |||||||||||
Gross profit | 40.8 | +6.4 | 27.1 | (1.6) | 191.2 | +29.1 | |||||||
Expenses | 27.3 | (6.1) | 22.9 | +0.5 | 85.4 | +10.7 | |||||||
Net business | 13.4 | +12.5 | 4.2 | (2.2) | 113.4 | +20.3 | |||||||
profit | |||||||||||||
Net income | 11.2 | +11.4 | 2.5 | (1.4) | 61.2 | +4.3 | |||||||
*1 | YoY includes the impact of group reorganization | ||
*2 Incl. profit from overseas equity-method affiliates of SMBC Nikko (consolidated subsidiaries of SMFG) | Copyright © 2023 Sumitomo Mitsui Financial Group. | 4 | |
*3 | Managerial accounting basis | All Rights Reserved. |
Consolidated net business profit
Remains solid with progress rate of 81.4% (YoY +123.5bn.) Profit decline in SMBC Nikko and the wealth management business was offset by strong growth of other businesses.
Breakdown of YoY
Global | ||
(JPY bn) | Global | Markets |
+108.1 | +11.5 | |
Others | ||
(11.9) | ||
Wholesale | ||
+29.4 | ||
1,029.2 | ||
Retail | ||
(13.6) |
Business (Gross profit)
Full-year | 1-3Q | |||||||||
(JPY bn) | (JPY bn) | Credit card | ||||||||
400 | Wealth management | 250 | commissions | |||||||
300 | 200 | |||||||||
150 | ||||||||||
200 | ||||||||||
100 | ||||||||||
100 | 50 | |||||||||
0 | 3/ 20 | 21 | 22 | 23(FY) | 0 | 3/ 20 | 21 | 22 | 23 (FY) |
(JPY bn) | Non interest income | Overseas income on |
(JPY bn) |
905.6 | +123.5 (o/w SMBC Nikko(113.8)) | |||||||||||||
1-3Q | 1-3Q | |||||||||||||
FY3/22 | FY3/23 |
600 | (domestic wholesale) | 500 | |||
400 | |||||
400 | 300 | ||||
200 | 200 | ||||
100 | |||||
0 | 3/ 20 | 21 | 22 | 23(FY) | 0 |
loans and deposits
3/ 20 | 21 | 22 | 23 (FY) |
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Sumitomo Mitsui Financial Group Inc. published this content on 30 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2023 06:53:10 UTC.