Investors Presentation
September 2022
Copyright © 2022 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)
Jun. 21 | Mar. 22 | Jun. 22 | |
USD | 110.61 | 122.41 | 136.64 |
EUR | 131.63 | 136.81 | 142.65 |
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 |
(GM) | Market / Treasury related businesses |
Copyright © 2022 Sumitomo Mitsui Financial Group. | 2 |
All Rights Reserved. |
Agenda
I | Summary of Financial Results | 4 |
II | Aim for growth with quality | 25 |
III | Capital Policy | 36 |
IV | Initiatives for Sustainability | 43 |
Appendix | 48 |
Copyright © 2022 Sumitomo Mitsui Financial Group. | 3 |
All Rights Reserved. |
I. Financial Results
Income statement
Progress rate of 1Q results toward FY3/23 full-year target:
Consolidated net business profit 28%, Profit attributable to owners of parent 35%
1Q | YoY | FY3/23 | |||||
(JPY bn) | FY3/23 | target | |||||
1 | Consolidated gross profit | 796.9 | +105.1 | ||||
2 | G&A expenses | 484.0 | +46.0 | ||||
Overhead ratio | 60.7% | (2.6)% | |||||
3 | Equity in gains (losses) | 32.7 | +19.4 | ||||
of affiliates | Progress | ||||||
4 | Consolidated | 28% | 345.6 | +78.5 | 1,235 | ||
net business profit | |||||||
5 | Total credit cost | 32.1 | +21.8 | 210 | |||
6 | Gains (losses) on stocks | 36.8 | (3.5) | ||||
7 | Other income (expenses) | (0.7) | +9.2 | ||||
8 | Ordinary profit | 349.7 | +62.4 | 1,060 | |||
9 | Extraordinary gains (losses) | (1.0) | +1.4 | ||||
10 | Income taxes | 94.0 | +14.0 |
Consolidated gross profit: increased YoY due to loan growth and fee income in WS and GB Business Units.
Impact of FX: JPY+ 44 bn.
G&A expenses: increased YoY mainly due to overseas expense related to inflation and resource allocation for strategic investment. Impact of FX: JPY + 21 bn.
Equity in gains of affiliates: increased YoY mainly due to real estate business in SMFL and gains on change in equity related to Bank of East Asia.
Total credit cost: increased due to the rebound of COVID-19 related loan reversal in FY3/22.
No additional cost from exposure to Russia.
Gains on stocks: ETF sales decreased YoY, while gains on sales of strategic shareholdings increased (JPY 22 bn, YoY JPY 19 bn)
Consolidated impact of Fullerton India (Approx. JPY bn)
11 | Profit attributable to | 35% | 252.4 | +49.2 | 730 | |
owners of parent | ||||||
12 | ROE | 10.1% | +1.6% | |||
Consolidated gross profit | +12 | |
G&A expenses | +11*1 |
Consolidated | +1 |
net business profit | |
Total credit cost | +3 |
Profit attributable to | (3) |
owners of parent | |
*1 Including the amortization of goodwill | Copyright © 2022 Sumitomo Mitsui Financial Group. | 5 |
All Rights Reserved. |
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Sumitomo Mitsui Financial Group Inc. published this content on 01 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2022 00:19:07 UTC.