6-K 1 d138878d6k.htm FORM 6-K Form 6-K
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of November 2020

Commission File Number 001-34919

SUMITOMO MITSUI FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

     Form 20-F ☒      Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

     

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

     

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

   Yes ☐    No ☒

*If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

   82-                   


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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Sumitomo Mitsui Financial Group, Inc.

By:    

 

  /s/ Masahiko Tsutsui

 

Name:

  Masahiko Tsutsui
 

Title:

  General Manager, Financial Accounting Dept.

Date:    November 13, 2020


Table of Contents

 

 

Financial Results

for the Six Months

ended September 30, 2020

- Supplementary Information -

 

Sumitomo Mitsui Financial Group, Inc.


Table of Contents

Table of contents

Page

 

1.

  Income analysis      Consolidated          Non-consolidated          …        1  

2.

  Interest spread (domestic)         Non-consolidated               3  

3.

  Gains (losses) on securities         Non-consolidated               3  

4.

  Unrealized gains (losses) on securities      Consolidated          Non-consolidated               4  

5.

  Balance of securities, classified by maturity         Non-consolidated               5  

6.

  Notional amount of interest rate swaps
(under deferred hedge accounting),
classified by remaining maturity
        Non-consolidated               5  

7.

  Employee retirement benefits      Consolidated          Non-consolidated               6  

8.

  Classification based on self-assessment and
the Financial Reconstruction Act, and
write-offs / reserves
        Non-consolidated               7  

9.

  Risk-monitored loans      Consolidated          Non-consolidated               8  

10.

  Reserve for possible loan losses and reserve ratio      Consolidated          Non-consolidated               8  

11.

  Non-performing loans (NPLs) based on the
Financial Reconstruction Act and coverage
     Consolidated          Non-consolidated               9  

12.

  Results of off-balancing of NPLs         Non-consolidated               10  

13.

  Loan portfolio, classified by industry         Non-consolidated               11  

14.

  Loan portfolio, classified by country         Non-consolidated               13  

15.

  Balance of deposits and loans         Non-consolidated               14  

16.

  Deferred tax assets and liabilities         Non-consolidated               15  

17.

  Capital ratio (BIS guidelines)      Consolidated          Non-consolidated               16  

18.

  ROE      Consolidated                    16  

19.

  Earnings targets and dividends forecast for FY3/2021      Consolidated          Non-consolidated               17  
 Reference : Financial statements of SMBC         Non-consolidated               18  

 

Notes:    1.    Consolidated: Consolidated figures of Sumitomo Mitsui Financial Group, Inc.
   2.    Non-consolidated: Non-consolidated figures of Sumitomo Mitsui Banking Corporation (“SMBC”)

 

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; our ability to successfully implement our business strategy through our subsidiaries, affiliates and alliance partners; exposure to new risks as we expand the scope of our business; incurrence of significant credit-related costs; and declines in the value of our securities portfolio. 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.


Table of Contents

Sumitomo Mitsui Financial Group

 

1. Income analysis   

 

Consolidated         (Millions of yen)
        Six months ended
Sep. 30, 2020
      Six months ended
Sep. 30, 2019
      Change
Consolidated gross profit     1     1,377,371          (5,833)         1,383,204       
   

Net interest income

    2     632,060          (13,953)         646,013       
   

Trust fees

    3     2,253          124          2,129       
   

Net fees and commissions

    4     498,520          (21,049)         519,569       
   

Net trading income

    5     139,334          18,878          120,456       
   

Net other operating income

    6     105,203          10,168          95,035       
General and administrative expenses     7     (836,421)         22,289          (858,710)      
Equity in gains (losses) of affiliates     8     10,223          (19,875)         30,098       
                 

Consolidated net business profit

    9     551,174          (3,418)         554,592       
                    
Total credit cost     10     (200,201)         (135,810)         (64,391)      
   

Credit costs

    11     (206,559)         (135,785)         (70,774)      
          

Write-off of loans

    12     (54,347)         (10,429)         (43,918)      
     

Provision for reserve for possible loan losses

    13     (140,724)         (115,953)         (24,771)      
     

Others

    14     (11,487)         (9,404)         (2,083)      
   

Recoveries of written-off claims

    15     6,358          (24)         6,382       
Gains (losses) on stocks     16     36,294          (33,986)         70,280       
Other income (expenses)     17     (40,972)         (38,851)         (2,121)      
                  

Ordinary profit

    18     346,294          (212,065)         558,359       
                 
Extraordinary gains (losses)     19     (4,359)         (24,977)         20,618       
   

Gains (losses) on disposal of fixed assets

    20     (54)         (116)         62       
   

Losses on impairment of fixed assets

    21     (3,983)         (2,542)         (1,441)      
   

Gains on step acquisitions

    22     —           (21,997)         21,997       
Income before income taxes     23     341,934          (237,044)         578,978       
Income taxes - current     24     (87,704)         16,789          (104,493)      
Income taxes - deferred     25     16,322          47,489          (31,167)      
Profit     26     270,553          (172,764)         443,317       
Profit attributable to non-controlling interests     27     (422)         10,939          (11,361)      
                     

Profit attributable to owners of parent

    28     270,130          (161,825)         431,955       
                 
Notes:   1.   Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.
    2.   Consolidated gross profit = (Interest income - Interest expenses) + Trust fees + (Fees and commissions - Fees and commissions payments)
   

+ (Trading income - Trading losses) + (Other operating income - Other operating expenses)

  3.   The Company changed the recognition of installment-sales-related income and installment-sales-related expenses from this period and the change in accounting policies is applied retroactively for the six months ended September 30, 2019. As a result, comparing before and after the retroactive application, Net interest income increased by 16,995 million yen, and Net other operating income decreased by 16,995 million yen.
  Number of consolidated subsidiaries and affiliates
              Sep. 30, 2020       Mar. 31, 2020
        Change
 

Consolidated subsidiaries

    29               175          1                    174       
 

Equity method affiliates

    30     117                    16          101       

 

- 1 -


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Sumitomo Mitsui Financial Group

 

SMBC non-consolidated

              (Millions of yen)
                    Six months ended
      Six months ended
                    Sep. 30, 2020   Change   Sep. 30, 2019

Gross banking profit

      1       748,562          12,775            735,787       
    Gross domestic profit       2       345,135          (34,354)           379,489       
      Net interest income       3       271,641          (5,752)           277,393       
      Trust fees       4       872          (45)           917       
      Net fees and commissions       5       68,387          (12,266)           80,653       
      Net trading income       6       (47)         (584)           537       
      Net other operating income       7       4,282          (15,704)           19,986       
             
       Gains (losses) on bonds       8       3,326        (10,778)         14,104   
    Gross international profit       9       403,426          47,128            356,298       
      Net interest income       10       163,971          164            163,807       
      Net fees and commissions       11       75,779          5,768            70,011       
      Net trading income       12       49,840          (7,451)           57,291       
      Net other operating income       13       113,835          48,648            65,187       
             
       Gains (losses) on bonds       14       101,692        29,931          71,761   

Expenses (excluding non-recurring losses)

      15       (397,874)         4,927            (402,801)      
         
    Overhead ratio       16       53.2%        (1.5%)          54.7%    
    Personnel expenses       17       (161,798)         (45)           (161,753)      
    Non-personnel expenses       18       (209,613)         5,961            (215,574)      
    Taxes       19       (26,463)         (990)           (25,473)      
 

Banking profit (before provision for general reserve for possible loan losses)

      20       350,687          17,702            332,985       
         
    Gains (losses) on bonds       21       105,018        19,153          85,865   
    Core banking profit (20-21)       22       245,669          (1,451)           247,120       
         excluding gains (losses) on cancellation of investment trusts       23       234,048          (3,083)           237,131       
 

Provision for general reserve for possible loan losses

      24       (92,275)         (92,275)           —       

Banking profit

      25       258,411          (74,574)           332,985       

Non-recurring gains (losses)

      26       (67,438)         (26,524)           (40,914)      
    Credit costs       27       (36,333)         (27,057)           (9,276)      
    Gains on reversal of reserve for possible loan losses                               28       —          (833)           833       
    Recoveries of written-off claims       29       20          0            20       
    Gains (losses) on stocks       30       34,250          (38,783)           73,033       
    Other non-recurring gains (losses)       31       (65,375)         40,150            (105,525)      
 

Ordinary profit

      32       190,973          (101,098)           292,071       
 

Extraordinary gains (losses)

      33       (1,653)         (36)           (1,617)      
    Gains (losses) on disposal of fixed assets       34       157          499            (342)      
    Losses on impairment of fixed assets       35       (1,810)         (536)           (1,274)      

Income before income taxes

      36       189,320          (101,133)           290,453       

Income taxes - current

      37       (65,829)         14,587            (80,416)      

Income taxes - deferred

      38       20,922          36,931            (16,009)      
 

Net income

      39       144,413          (49,614)           194,027       
 
                             

Total credit cost (24+27+28+29)

      40       (128,589)         (120,167)           (8,422)      
    Provision for general reserve for possible loan losses       41       (92,275)         (89,277)           (2,998)      
    Write-off of loans       42       (20,904)         (13,542)           (7,362)      
    Provision for specific reserve for possible loan losses       43       (9,650)         (13,482)           3,832       
    Losses on sales of delinquent loans       44       (5,778)         (3,864)           (1,914)      
    Provision for loan loss reserve for specific overseas countries       45       (0)         0            (0)      
    Recoveries of written-off claims       46       20          0            20       
Note: Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.

 

 

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Sumitomo Mitsui Financial Group

 

2. Interest spread (domestic)

 

SMBC non-consolidated                 (%)
             

 

Six months
ended
Sep. 30, 2020

           

 

Six months  
ended  
Sep. 30, 2019  

     Three months  
ended  
Jun. 30, 2020  
   Three months  
ended  
Sep. 30, 2020  
   Change  
Yield on interest earning assets (A)             0.73           (0.09)      0.82   
   

Interest earned on loans and bills discounted (C)

   0.84      0.82     0.83           (0.08)      0.91   
   

Interest earned on securities

            0.60           (0.27)      0.87   
Total cost of funding (including expenses) (B)             0.50           (0.05)      0.55   
   

Cost of interest bearing liabilities

            0.02           (0.01)      0.03   
         

Interest paid on deposits, etc. (D)

   0.00      0.00     0.00           (0.00)      0.00   
       

Interest paid on other liabilities

            0.15           (0.04)      0.19   
   

Expense ratio

            0.48           (0.04)      0.52   
Overall interest spread (A) - (B)             0.23           (0.04)      0.27   
   

Interest spread (C) - (D)

   0.84      0.82     0.83           (0.08)      0.91   
                   
  Reference: After deducting loans to the Japanese government, etc.          
  Interest earned on loans and bills discounted (E)    0.87      0.85     0.86           (0.08)      0.94   
 

Interest spread (E) - (D)

   0.87      0.85     0.86           (0.08)      0.94   

3. Gains (losses) on securities

               
SMBC non-consolidated        (Millions of yen)
       

 

Six months
ended
Sep. 30, 2020

            Six months  
ended  
Sep. 30, 2019  
             Change  
Gains (losses) on bonds   105,018           19,153       85,865   
   

Gains on sales

  111,728           8,928       102,800   
   

Losses on sales

  (6,538)          2,323       (8,861)  
   

Gains on redemption

  0           0       0   
   

Losses on redemption

  (172)          7,901       (8,073)  
   

Losses on devaluation

  —           —       —   
                   
Gains (losses) on stocks   34,250           (38,783)      73,033   
   

Gains on sales

  53,489           (38,663)      92,152   
   

Losses on sales

  (2,756)          10,712       (13,468)  
   

Losses on devaluation

  (16,482)          (10,832)      (5,650)  

 

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Sumitomo Mitsui Financial Group

 

4. Unrealized gains (losses) on securities

 

Consolidated           (Millions of yen)
                Sep. 30, 2020   Mar. 31, 2020
          Balance sheet  amount     Net unrealized gains (losses)     Balance sheet  amount        Net unrealized   gains (losses)   (b)  
                       
              (a)    (a) - (b)     Gains     Losses  

        

  Held-to-maturity securities      22,300        (12)     (152)     15      27      282,379          140   
    Other securities      29,063,318        2,425,432      533,103      2,536,618      111,186      26,649,206          1,892,329   
   

        

 

Stocks

     3,182,213        1,742,009      472,446      1,804,331      62,322      2,736,807          1,269,563   
     

Bonds

     13,447,898        23,624      2,107      37,159      13,535      10,067,396          21,517   
     

        

  Japanese government bonds       10,289,319        (4,684)     2,444      5,159      9,844      7,087,934          (7,128)  
     

Others

     12,433,206        659,798      58,550      695,127      35,328      13,845,002          601,248   
            Foreign bonds      10,191,867        169,382      (86,300)     185,448      16,065      11,649,523          255,682   
    Other money held in trust      333        —      —      —      —      353          —   
   

Total

     29,085,951        2,425,420      532,951      2,536,633      111,213      26,931,938          1,892,469   
     

Stocks

   10    3,182,213        1,742,009      472,446      1,804,331      62,322      2,736,807          1,269,563   
     

Bonds

   11    13,470,198        23,611      1,954      37,174      13,562      10,349,775          21,657   
       

Others

   12    12,433,540          659,798      58,550      695,127      35,328      13,845,355          601,248   
SMBC non-consolidated           (Millions of yen)
                Sep. 30, 2020   Mar. 31, 2020
           

 Balance sheet 

amount

     Net unrealized  gains (losses)    Balance sheet  amount        Net unrealized   gains (losses)    (b)  
                           
                  (a)    (a) - (b)     Gains     Losses  

        

  Held-to-maturity securities    13    22,300        (12)     54      15      27      22,300          (66)  
    Stocks of subsidiaries and affiliates    14    4,257,075        (144,979)     (18,139)     3,145      148,125      4,182,047          (126,840)  
   

Other securities

   15    25,875,800        1,908,771      452,619      2,015,778      107,007      23,541,406          1,456,151   
   

        

 

Stocks

   16    2,990,242        1,653,917      443,174      1,714,211      60,294      2,576,557          1,210,742   
     

Bonds

   17    13,362,782        23,468      2,023      37,002      13,533      9,978,420          21,445   
     

        

  Japanese government bonds     18    10,284,317        (4,684)     2,442      5,159      9,844      7,083,933          (7,127)  
     

Others

   19    9,522,775        231,385      7,421      264,564      33,179      10,986,427          223,964   
           

Foreign bonds

   20    7,762,624        110,173      (73,179)     124,529      14,356      9,253,087          183,353   
   

Total

   21    30,155,175        1,763,779      434,534      2,018,939      255,160      27,745,753          1,329,245   
     

Stocks

   22    3,472,415        1,657,063      445,903      1,717,357      60,294      3,057,077          1,211,159   
     

Bonds

   23    13,385,082        23,456      2,077      37,017      13,561      10,000,720          21,378   
       

Others

   24    13,297,677          83,259      (13,447)     264,564      181,304      14,687,955          96,707   

 

Notes:    1.   The figures above include negotiable certificates of deposit in “Cash and due from banks” and beneficiary claims on loan trust in “Monetary claims bought.”
   2.   “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30) and “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31) are applied from the fiscal year ending March 31, 2021.
     Due to the application, the net unrealized gains (losses) for the six months ended September 30, 2020 are measured based on market prices of the securities as of the balance sheet date. For the year ended March 31,2020, stocks within Other securities and foreign stocks within Others of Other securities are measured at the average market price during the final month of the period. The rest of the securities are measured at market prices as of the balance sheet date.
   3.   Other securities and other money held in trust are measured at market prices. Unrealized gains (losses) indicate the difference between the acquisition costs (or amortized costs) and the balance sheet amounts.
     Net unrealized gains (losses) on Other securities include gains (losses) which are recognized in the statements of income by applying fair value hedge accounting and accordingly not recorded directly to Net assets. Losses of 8,495 million yen and losses of 26,403 million yen were recognized in the statements of income for the six months ended September 30, 2020 and for the year ended March 31, 2020, respectively.

 

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Sumitomo Mitsui Financial Group

 

5. Balance of securities, classified by maturity

Balance of other securities with maturities and bonds of held-to-maturity

 

SMBC non-consolidated

              (Billions of yen)
        Sep. 30, 2020    Mar. 31, 2020 
                         
       

1 year  

or less  

  More than   1 year to   5 years     More than   5 years to   10 years     More than   10 years     Total      1 year   or less     More than   1 year to   5 years     More than   5 years to   10 years     More than   10 years     Total 
                     

Bonds

  4,199.4     6,870.2     1,445.6     869.8     13,385.1     3,550.4     4,044.1     1,411.0     995.2     10,000.7  
    Japanese government
bonds
  4,016.6     5,551.2     395.2     321.3     10,284.3     3,387.3     2,790.5     454.7     451.4     7,083.9  
    Japanese local
government bonds
  5.3     128.4     390.0     12.5     536.3     2.9     45.0     202.0     12.8     262.7  
    Japanese corporate
bonds
  177.5     1,190.6     660.4     536.0     2,564.5     160.2     1,208.6     754.3     531.1     2,654.1  
                     

Others

  2,446.8     1,951.5     1,131.5     2,513.6     8,043.4     2,209.7     2,259.6     1,814.0     3,395.6     9,678.9  
                     

Total

  6,646.2     8,821.7     2,577.1     3,383.5     21,428.5     5,760.1     6,303.7     3,225.0     4,390.8     19,679.6  

6. Notional amount of interest rate swaps (under deferred hedge accounting), classified by remaining maturity

 

SMBC non-consolidated

               (Billions of yen)
        Sep. 30, 2020    Mar. 31, 2020 
                           
        1 year   or less     More than   1 year to   5 years     More than   5 years     Total      1 year   or less     More than   1 year to   5 years     More than   5 years     Total 
    Receivable fixed rate
/ payable floating rate
  7,444.3     16,739.7     9,488.3     33,672.3     7,637.8     17,653.2     11,127.3     36,418.4  
    Receivable floating rate
/ payable fixed rate
  1,731.3     4,622.5     5,914.6     12,268.5     1,074.1     5,445.7     8,028.4     14,548.1  
                 

Total

  9,175.6     21,362.2     15,402.9     45,940.8     8,711.9     23,098.9     19,155.7     50,966.5  

 

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Sumitomo Mitsui Financial Group

 

7. Employee retirement benefits

Consolidated

(1) Projected benefit obligation

(Millions of yen)

           

 

 

 

 

At the beginning
of FY3/2021

 

 

 
 

 

         

At the beginning
of FY3/2020

 

         

 

Change

 

 

 

Fair value of plan assets   (A)     1,318,775       (102,603   1,421,378 
Projected benefit obligation   (B)     1,123,979       219     1,123,760 
Net surplus (deficit)   (A-B)     194,795       (102,822   297,617 
    Net defined benefit asset         230,573       (98,861   329,434 
    Net defined benefit liability         35,777       3,961     31,816 
       
Measurements of defined benefit plans (before tax effect deduction)     128,085       119,790     8,295 
    Unrecognized prior service cost (deductible from the obligation)     (159     141     (300)
    Unrecognized net actuarial gain (loss)     128,245       119,649     8,596 

 

 

(2) Retirement benefit expenses

(Millions of yen)
           

 

 

 

 

Six months ended
Sep. 30, 2020

 

 

 
 

 

         

Six months ended
Sep. 30, 2019

 

             

 

Change

 

 

 

Retirement benefit expenses         9,089       (3,445   12,534 

 

 

SMBC non-consolidated

 

(1) Projected benefit obligation
      (Millions of yen)
           

 

 

 

 

At the beginning
of FY3/2021

 

 


 

 

         

At the beginning
of FY3/2020    

 

           

 

Change

 

 

 

Projected benefit obligation   (A)     985,099        (1,094   986,193 
                    <Discount rate>                         <0.28%>        <—>      <0.28%> 
    Fair value of plan assets   (B)     1,205,306        (99,353   1,304,659 
    Reserve for employee retirement benefits   (C)     —        —       — 
    Prepaid pension cost   (D)     344,481                      23,450     321,031 
    Unrecognized prior service cost (deductible from the obligation)    (E)     —        —      — 
    Unrecognized net actuarial gain (loss)   (A-B-C+D-E)     124,273        121,708     2,565 

 

(2) Retirement benefit expenses

  (Millions of yen)
              

 

Six months ended
Sep. 30, 2020

 

          

Six months ended
Sep. 30, 2019

 

             

Change

 

 

Retirement benefit expenses

    2,094       (582   2,676 
   

Service cost

        12,121       (2,324   14,445 
    Interest cost on projected benefit obligation         1,480       100     1,380 
    Expected returns on plan assets         (18,297     1,675     (19,972)
    Amortization of unrecognized prior service cost         (883     (883   — 
    Amortization of unrecognized net actuarial gain (loss)         4,276       2,389     1,887 
    Others         3,397       (1,538   4,935 

 

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Sumitomo Mitsui Financial Group

 

8. Classification based on self-assessment and the Financial Reconstruction Act, and write-offs / reserves

 

 

LOGO

 

*1   Includes direct reduction of 115.7 billion yen.
*2   Includes reserve for assets that are not subject to disclosure based on the Financial Reconstruction Act standards.
(Bankrupt/Effectively bankrupt borrowers: 3.9 billion yen, Potentially bankrupt borrowers: 1.6 billion yen)
*3   Reserve ratios for claims on Bankrupt borrowers, Effectively bankrupt borrowers, Potentially bankrupt borrowers, Substandard borrowers and Borrowers requiring caution including Substandard borrowers are the proportion of reserve for the possible loan losses to each category’s total claims, excluding the portion secured by collateral or guarantees, etc.
*4   Reserve ratios for claims on Normal borrowers and Borrowers requiring caution (excluding claims to Substandard borrowers) are the proportion of the reserve for possible loan losses to the respective claims of each category.
  The reserve ratio for unsecured claims on Borrowers requiring caution (excluding claims to Substandard borrowers) is shown in [    ].
*5   Includes Specific reserve for Borrowers requiring caution totaling 0.2 billion yen.
*6   The proportion of the reserve to the claims, excluding the portion secured by collateral or guarantees, etc.

 

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Sumitomo Mitsui Financial Group

 

9. Risk-monitored loans

 

Consolidated

            (Millions of yen, %)
       Sep. 30, 2020                  Mar. 31, 2020   
         
           
        

  Ratio    

  (b)    

 

 

          

  Ratio    

  (d)   

       (a)            (a) - (c)           (c)    
           

Bankrupt loans

     69,664         0.1         55,686         13,978       0.0  
           

Non-accrual loans

     400,202         0.5         22,029         378,173       0.5  
           

Past due loans (3 months or more)

     23,676         0.0         9,276         14,400       0.0  
           

Restructured loans

     246,463         0.3         25,175         221,288       0.3  
           

Total

     740,006         0.9         112,166         627,840       0.8  
             
           

Total loans (period-end balance)

     84,516,005         100.0             1,998,396         82,517,609       100.0  

          Amount of direct reduction

     137,993           24,739         113,254      

 

SMBC non-consolidated

            (Millions of yen, %)
       Sep. 30, 2020                  Mar. 31, 2020  
         
           
        

  Ratio    

  (b)    

 

 

          

  Ratio    

  (d)   

       (a)            (a) - (c)           (c)    
           

Bankrupt loans

     68,527         0.1         55,549         12,978       0.0  
           

Non-accrual loans

     316,773         0.4         11,186         305,587       0.4  
           

Past due loans (3 months or more)

     16,407         0.0         11,939         4,468       0.0  
           

Restructured loans

     88,554         0.1         (1,784)        90,338       0.1  
           

Total

     490,264         0.6         76,892         413,372       0.5  
           
           

Total loans (period-end balance)

     81,078,883         100.0         891,501         80,187,382       100.0  

          Amount of direct reduction

     98,579           20,515         78,064      

 

10. Reserve for possible loan losses and reserve ratio

 

    

 

Consolidated

            (Millions of yen, %)
           Sep. 30, 2020                  Mar. 31, 2020  
           
           
            
  Reserve Ratio    
  (b)      
 
 
          

  Reserve Ratio  

  (d)     

           (a)            (a) - (c)           (c)    
           
Reserve for possible loan losses      564,094         76.23         84,897         479,197       76.32  
             
   

General reserve

     420,926             84,837         336,089        
           
   

Specific reserve

     143,167             60         143,107        
           
   

Loan loss reserve for specific overseas countries

     1                        0        

          Amount of direct reduction

     166,936           24,102         142,834      

 

SMBC non-consolidated

            (Millions of yen, %)
           Sep. 30, 2020                  Mar. 31, 2020  
           
            
  Reserve Ratio    
  (b)      
 
 
          

  Reserve Ratio  

  (d)     

           (a)            (a) - (c)           (c)    
           
Reserve for possible loan losses      365,231         74.50         85,529         279,702       67.66  
             
   

General reserve

     280,848             92,276         188,572        
             
   

Specific reserve

     84,381             (6,747)        91,128        
             
   

Loan loss reserve for specific overseas countries

     1                        0        

          Amount of direct reduction

     115,741           20,331         95,410      

Note: Reserve ratio: Reserve for possible loan losses / Risk-monitored loans. After direct reduction.

 

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Sumitomo Mitsui Financial Group

 

11. Non-performing loans (NPLs) based on the Financial Reconstruction Act and coverage

 

Consolidated      (Millions of yen, %)  
           Sep. 30, 2020          Mar. 31, 2020   
       (a)      (a) - (b)       (b)  
         
    Bankrupt and quasi-bankrupt assets    133,310     45,453     87,857 
         
    Doubtful assets    360,429     33,546     326,883 
         
    Substandard loans    270,764     35,225     235,539 
       
Total (A)    764,504     114,224     650,280 
                
       
    Normal assets    96,842,733     1,569,538     95,273,195 
       
    Grand total (B)    97,607,237     1,683,761     95,923,476 
       
NPL ratio (A/B)    0.78     0.10     0.68 
        (Millions of yen)
         Sep. 30, 2020         Mar. 31, 2020  
       (a)      (a) - (b)       (b)  
       

Total coverage (C)

   561,155     94,670     466,485 
         
   

Reserve for possible loan losses (D)

   154,959     1,957     153,002 
         
   

Amount recoverable by guarantees, collateral and others (E)

   406,196     92,713     313,483 
           (%)
       

Coverage ratio (C) / (A)

   73.40     1.66     71.74 

Coverage ratio calculated with total reserve for possible loan losses included in the numerator

   126.92     5.02     121.90  
           (%)
       

Reserve ratio to unsecured assets (D) / (A - E)

   43.25     (2.18)     45.43 

Reserve ratio calculated with total reserve for possible loan losses included in the numerator

   157.43     15.15     142.28  

SMBC non-consolidated

      (Millions of yen, %)
         
       Sep. 30, 2020         Mar. 31, 2020  
       
         (a)      (a) - (b)       (b)  
         
   

Bankrupt and quasi-bankrupt assets

   117,606     44,630     72,976 
         
   

Doubtful assets

   280,743     19,910     260,833 
         
   

Substandard loans

   104,962     10,155     94,807 
       

Total (A)

   503,312     74,695     428,617 
                
       
   

Normal assets

   93,345,499     548,109     92,797,390 
       
   

Grand total (B)

   93,848,812     622,805     93,226,007 
       

NPL ratio (A/B)

   0.54     0.08     0.46 

Note: NPLs based on the Financial Reconstruction Act include loans, acceptances and guarantees, suspense payments, and other credit-type assets.

        (Millions of yen)
         Sep. 30, 2020
        Mar. 31, 2020  
       
       (a)      (a) - (b)       (b)  
       

Total coverage (C)

   441,866     68,981      372,885 
         
   

Reserve for possible loan losses* (D)

   106,258     (5,946)     112,204 
         
   

Amount recoverable by guarantees, collateral and others (E)

   335,608     74,927      260,681 

*  Sum of general reserve for substandard loans and specific reserve

        
           (%)
       

Coverage ratio (C) / (A)

   87.79     0.79     87.00 

Coverage ratio calculated with total reserve for possible loan losses included in the numerator

   139.25     13.17     126.08  
           (%)
       

Reserve ratio to unsecured assets (D) / (A - E)

   63.36     (3.45)     66.81 

Reserve ratio calculated with total reserve for possible loan losses included in the numerator

   217.78     51.23     166.55  

 

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Sumitomo Mitsui Financial Group

 

12. Results of off-balancing of NPLs

SMBC non-consolidated

                (Billions of yen)
                         
                     

        

       

Sep. 30, 2020  

(a)

 

 

 

     (a) - (b)       

 

 

  NPLs newly classified  during the six months ended Sep. 30, 2020  

Amount of    off-balancing   

 

 

 

Mar. 31, 2020

(b)

 

 

   

 

Bankrupt and quasi-bankrupt assets

 

 

 

117.6 

 

 

 

44.6 

 

 

 

61.3 

 

 

 

(16.7) 

 

 

 

73.0 

 

   

 

Doubtful assets

 

 

 

280.7 

 

 

 

19.9 

 

 

 

85.8 

 

 

 

(65.9) 

 

 

 

260.8 

 

   

 

Total

 

 

 

398.4 

 

 

 

64.5 

 

 

 

147.1 

 

 

 

(82.6) 

 

 

 

333.8 

 

               

Result of measures connected to off-balancing (*1)

 

96.4 

 

       

38.5 

 

               

        

         

 

Disposition by borrowers’ liquidation

 

 

 

(1.3) 

 

 
         

 

Reconstructive disposition

 

 

 

(0.0) 

 

 
          Improvement in debtors’ performance due to reconstructive disposition   —     
   

     Breakdown of       

off-balancing

by factor (*2)

   

 

Loan sales to market

 

 

 

(19.3) 

 

 
     

 

Direct write-offs

 

 

 

(4.8) 

 

 
     

 

Others

 

 

(57.1) 

 

 
           

 

Collection / repayment, etc.

 

 

(43.9) 

 

 
            Improvement in debtors’ performance   (13.2)   
                 
       

 

Total

         

 

(82.6) 

 

 

 

*1    The measures connected to off-balancing are legal reorganizations and other similar measures, corporate splits to good companies and bad companies, partial direct write-offs of retail exposure to individuals and small- and medium-sized enterprises, and trusts to RCC for the purpose of revitalization which is scheduled to be off-balanced before the maturity.
*2   

1. “Disposition by borrowers’ liquidation” refers to abandonment or write-off of loans involved in bankruptcy liquidation proceedings (bankruptcy or special liquidations).

  

2. “Reconstructive disposition” refers to abandonment of loans involved in reconstructive bankruptcy proceedings (corporate reorganization and civil rehabilitation), debt forgiveness involved in special mediation or other types of civil mediation, or debt forgiveness for restructuring involved in private reorganization.

 

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Sumitomo Mitsui Financial Group

 

 

13. Loan portfolio, classified by industry

 

SMBC non-consolidated

 

(1) Loans and bills discounted, classified by industry

 

     (Millions of yen,  %) 
               Sep. 30, 2020                   Mar. 31, 2020         
              (a)     Ratio       (a) - (b)     (b)     Ratio  

Domestic offices

(excluding Japan offshore banking accounts)

    57,295,200       100.0       2,681,872       54,613,328       100.0  
   

Manufacturing

    10,160,336       17.7       2,967,250       7,193,086       13.2  
   

Agriculture, forestry, fisheries and mining

    254,422       0.5       (3,069     257,491       0.5  
   

Construction

    763,656       1.3       10,440       753,216       1.4  
   

Transportation, communications and public enterprises

    5,355,288       9.4       227,107       5,128,181       9.4  
   

Wholesale and retail

    4,425,484       7.7       40,186       4,385,298       8.0  
   

Finance and insurance

    6,142,094       10.7       (988,182     7,130,276       13.1  
   

Real estate

    7,793,782       13.6       172,667       7,621,115       13.9  
   

Goods rental and leasing

    1,685,817       2.9       105,108       1,580,709       2.9  
   

Various services

    4,697,684       8.2       418,563       4,279,121       7.8  
   

Municipalities

    502,781       0.9       (281,492     784,273       1.4  
   

Others

    15,513,852       27.1       13,295       15,500,557       28.4  
Overseas offices and Japan offshore banking accounts     23,783,682       100.0       (1,790,372     25,574,054       100.0  
   

Public sector

    178,323       0.7       4,026       174,297       0.7  
   

Financial institutions

    1,734,810       7.3       (194,754     1,929,564       7.5  
   

Commerce and industry

    19,874,221       83.6       (1,611,454     21,485,675       84.0  
   

Others

    1,996,327       8.4       11,810       1,984,517       7.8  
Total     81,078,883       —         891,501       80,187,382       —    
 

Risk-monitored loans

      (Millions of yen, %)  
              Sep. 30, 2020                                                     Mar. 31, 2020                          
              (a)     Ratio       (a) - (b)     (b)     Ratio  
 

Domestic offices

(excluding Japan offshore banking accounts)

    333,855       100.0       32,647       301,208       100.0  
    Manufacturing     51,261       15.3       5,560       45,701       15.2  
    Agriculture, forestry, fisheries and mining     1,606       0.5       (26     1,632       0.5  
    Construction     8,828       2.6       (1,134     9,962       3.3  
   

Transportation, communications and public enterprises

    32,887       9.8       (6,421     39,308       13.1  
    Wholesale and retail     68,039       20.4       2,802       65,237       21.7  
    Finance and insurance     5,233       1.6       (25     5,258       1.7  
    Real estate     34,917       10.5       1,622       33,295       11.1  
    Goods rental and leasing     951       0.3       650       301       0.1  
    Various services     80,860       24.2       25,982       54,878       18.2  
    Municipalities     —         —         —         —         —    
      Others     49,268       14.8       3,637       45,631       15.1  
  Overseas offices and Japan offshore banking accounts     156,408       100.0       44,244       112,164       100.0  
    Public sector     —         —         —         —         —    
    Financial institutions     —         —         —         —         —    
    Commerce and industry     126,073       80.6       68,129       57,944       51.7  
    Others     30,334       19.4       (23,886     54,220       48.3  
 

Total

    490,264       —         76,892       413,372       —    

 

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Sumitomo Mitsui Financial Group

 

(2) NPLs based on the Financial Reconstruction Act classified by industry, and reserve ratio

 

                    (Millions of yen,  %) 
               Sep. 30, 2020                   Mar. 31, 2020     
              

 

(a) 

 

 

 

Reserve 

ratio 

 

 

 

      (a) - (b)     

 

   

 

(b)

 

 

Domestic offices
(excluding Japan offshore banking accounts)

  345,455    68.9       37,982       307,473  
   

  Manufacturing

  56,014    58.9       7,937       48,077  
   

  Agriculture, forestry, fisheries and mining

  3,097    56.9       764       2,333  
   

  Construction

  9,011    55.2       (1,174     10,185  
   

  Transportation, communications and public enterprises

  33,901    87.6       (5,565     39,466  

        

 

  Wholesale and retail

  68,736    59.7       2,824       65,912  
   

  Finance and insurance

  5,335    90.6       (37     5,372  
   

  Real estate

  36,542    68.2       1,798       34,744  
   

  Goods rental and leasing

  951    57.6       650       301  
   

  Various services

  82,422    58.9       27,171       55,251  
   

  Municipalities

  —    —              
   

  Others

  49,442    100.0       3,614       45,828  

Overseas offices and Japan offshore banking accounts

  157,856    53.2       36,712       121,144  
   

  Public sector

  —    —              
   

  Financial institutions

  —    —              
   

  Commerce and industry

  126,861    53.4       60,723       66,138  
   

  Others

  30,994    51.5       (24,011     55,005  

Total

      503,312    63.4       74,695       428,617  
Notes:  1.   NPLs based on the Financial Reconstruction Act include loans, acceptances and guarantees, suspense payments, and other credit-type assets.
2.   Reserve ratio
 

= (Reserve for possible loan losses) / (Assets excluding amounts recoverable due to guarantees, collateral and others) X 100

Reserve for possible loan losses is sum of general reserve for substandard loans and specific reserve.

(3) Consumer loans outstanding

 

                 (Millions of yen)
                      

Sep. 30, 2020

 

(a)   

 

        

Mar. 31, 2020

 

(b)  

 

                   

 

(a) - (b)   

 

Consumer loans

               12,155,098                  (271,903)      12,427,001  
          

Housing loans

   11,367,780      (216,050)      11,583,830  
   

        

  

Self-residential purpose

   9,133,065      (134,413)      9,267,478  
   

Other consumer loans

   787,318      (55,853)      843,171  
        

(4) Loans to small- and medium-sized enterprises, etc.

 

        
                 (Millions of yen, %)
                       Sep. 30, 2020          Mar. 31, 2020
                      

 

(a)   

 

  

 

(a) - (b)   

 

  

 

(b)  

 

Outstanding balance

   33,889,220      794,187      33,095,033  

Ratio to total loans

   59.1      (1.5)     60.6  

Note:  Outstanding balance includes loans to individuals.

        

 

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Sumitomo Mitsui Financial Group

 

14. Loan portfolio, classified by country

SMBC non-consolidated

(1) Loans outstanding, classified by major domicile

 

    (Millions of yen, %)

        

     

 

Sep. 30, 2020  

         

 

  Mar. 31, 2020  

   
       

(a)

 

    Ratio       (a) - (b)    

(b)

 

    Ratio    

Asia

  6,359,381    26.8    (392,458)    6,751,839    26.9 
   

Indonesia

  331,180    1.4    1,260     329,920    1.3 
   

Thailand

  776,143    3.3    (41,537)    817,680    3.2 
   

Korea

  312,565    1.3    30,813     281,752    1.1 
   

Hong Kong

  1,563,617    6.6    (158,842)    1,722,459    6.9 
   

China

  297,508    1.2    (13,502)    311,010    1.2 
   

Taiwan

  427,526    1.8    (42,085)    469,611    1.9 
   

Singapore

  1,419,960    6.0    (100,508)    1,520,468    6.1 
   

India

  541,238    2.3    (37,412)    578,650    2.3 
   

Others

  689,644    2.9    (30,645)    720,289    2.9 

Oceania

  1,781,447    7.5    (40,375)    1,821,822    7.3 
   

Australia

  1,675,728    7.1    (27,303)    1,703,031    6.8 
   

Others

  105,719    0.4    (13,072)    118,791    0.5 

North America

  8,354,273    35.2    (815,110)    9,169,383    36.5 
   

United States

  6,317,123    26.6    (1,199,228)    7,516,351    29.9 
   

Others

  2,037,150    8.6    384,118     1,653,032    6.6 

Central and South America

  1,571,144    6.6    (92,234)    1,663,378    6.6 
   

Brazil

  276,985    1.2    18,527     258,458    1.0 
   

Panama

  400,984    1.7    (18,790)    419,774    1.7 
   

Others

  893,175    3.7    (91,971)    985,146    3.9 

Western Europe

  3,532,057    14.9    (157,334)    3,689,391    14.7 
   

United Kingdom

  998,331    4.2    (29,673)    1,028,004    4.1 
   

Ireland

  287,350    1.2    (25,285)    312,635    1.2 
   

Netherlands

  654,649    2.8    (59,801)    714,450    2.9 
   

Others

  1,591,727    6.7    (42,575)    1,634,302    6.5 

Eastern Europe

  157,937    0.7    (63,160)    221,097    0.9 
   

Russia

  108,410    0.5    (4,586)    112,996    0.5 
   

Others

  49,527    0.2    (58,574)    108,101    0.4 

Others

  1,958,206    8.3    183,003     1,775,203    7.1 

    

                   

Total

  23,714,445        100.0    (1,377,668)    25,092,113        100.0 

Note:    Classified by domicile of debtors.

         

(2) NPLs based on the Financial Reconstruction Act, classified by domicile

(Millions of yen, %)

       

 

  Sep. 30, 2020  

     

 

  Mar. 31, 2020  

      (a)  

Reserve  

Ratio  

  (a) - (b)     (b)
Overseas Offices and
Japan offshore banking accounts
  157,856    54.3    36,712     121,144 
    Asia   53,348    44.2    23,465     29,883 
    Oceania   882    21.9    (2)    884 
    North America   54,250    67.2    2,417     51,833 
    Central and South America   31,224    100.0    18,624     12,600 
    Western Europe   13,590    64.6    (453)    14,043 
    Eastern Europe   —     —     (853)    853 
    Others   4,560    57.6    (6,485)    11,045 

 

Notes:

  1.   NPLs based on the Financial Reconstruction Act include Loans, acceptances and guarantees, suspense payments, and other credit-type assets.
  2.   Reserve ratio
    = (Reserve for possible loan losses)/(Assets excluding amounts recoverable due to guarantees, collateral and others) X 100
    Reserve for possible loan losses is sum of general reserve for substandard loans and specific reserve.
  3.   Classified by domicile of debtors.

 

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Sumitomo Mitsui Financial Group

 

15. Balance of deposits and loans

SMBC non-consolidated

(1) Average balance of deposits and loans

(Millions of yen)

               

Six months ended  

Sep. 30, 2020  

(a)

        

Six months ended  
Sep. 30, 2019  

(b)

              (a) - (b)  

Deposits

   126,236,678                  11,737,522      114,499,156
   

Domestic units

   103,071,816      9,512,668     

93,559,148

                        
Loans    82,958,217      7,113,953     

75,844,264

    Domestic units    53,790,863      4,909,063     

48,881,800

Note:    Deposits do not include negotiable certificates of deposit.

(2) Balance of deposits and loans, classified by type of depositor

  
(Millions of yen)
               

Sep. 30, 2020   

(a)

  

 

    

 

  

Mar. 31, 2020

(b)

               

 

(a) - (b)  

 

Deposits

   130,587,536      10,614,212      119,973,324
    Domestic deposits
(excluding Japan offshore banking accounts)
   109,216,903      7,032,906      102,183,997
      Individuals    51,683,377      2,630,407      49,052,970
        Corporates    57,533,526      4,402,499      53,131,027
                        

Loans

   81,078,883      891,501      80,187,382
    Domestic offices
(excluding Japan offshore banking accounts)
   57,295,200      2,681,872      54,613,328
    Overseas offices and Japan offshore banking accounts    23,783,682      (1,790,372)     25,574,054

Note:    Deposits do not include negotiable certificates of deposit.

Reference:

        
                             (Billions of yen)
               

Sep. 30, 2020   

(a)

  

 

    

 

  

Mar. 31, 2020

(b)

             

 

(a) - (b)  

 

Balance of investment trusts

   2,201.2      228.1      1,973.1
   

Balance to individuals

   1,760.2      166.8      1,593.4

Note:    Balance of investment trusts is recognized on a contract basis and measured according to each fund’s net asset balance at the period-end.

                       (Billions of yen)
        

Six months ended
Sep. 30, 2020

(a)

       

Six months ended
Sep. 30, 2019
(b)

      (a) - (b)  

Sales of investment trusts to individuals

   242.1      122.6      119.5
            

Sales of pension-type insurance to individuals

   13.8      (63.9)     77.7

 

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Sumitomo Mitsui Financial Group

 

16. Deferred tax assets and liabilities

(Billions of yen)

 SMBC non-consolidated

           Sep. 30, 2020            Mar. 31, 2020  
            Change from
Mar. 31, 2020
 

 

(a) Total deferred tax assets

 

  (b-c)      1         210.5       30.7       179.8  
   

 

(b)

 

 

 

Subtotal of deferred tax assets

 

        2         492.4       32.8       459.6  
     

 

Reserve for possible loan losses and write-off of loans

 

        3         150.3       32.9       117.4  
     

 

Taxable write-off of securities

 

        4         223.7       (1.2     224.9  
     

 

Others

 

        5         118.4       1.1       117.3  
   

(c)

 

 

 

Valuation allowance

 

        6         281.9       2.1       279.8  

 

(d)

 

 

 

Total deferred tax liabilities

 

        7         649.4       138.9       510.5  
   

 

Net unrealized gains on other securities

 

        8         540.5       131.8       408.7  
   

 

Others

 

      9         108.9       7.1       101.8  

 

Net deferred tax assets

 

  (a-d)      10         (438.9     (108.2     (330.7
    Amount corresponding to net deferred losses on hedges included in line 5 and net unrealized gains on other securities included in line 8         11         (605.6     (142.7     (462.9
   

 

Others

 

        12         166.7       34.5       132.2  

 

 

SMBC recognized deferred tax assets pursuant to paragraph 19 (classification 2) of the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26). This is due to the fact that SMBC has generated steady taxable income, excluding amounts arising from extraordinary factors, in all of the current and past three fiscal years.

 

Reference: Income of final tax return before deducting operating loss carryforwards for the last 3 years

 

              (Billions of yen)
          FY3/2018            FY3/2019            FY3/2020       1H, FY3/2021 
Income of final tax return before deducting operating loss carryforwards    578.4     497.2     540.5    238.9

Note: The figure for 1H, FY3/2021 was estimated in interim closing.

 

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Sumitomo Mitsui Financial Group

 

17. Capital ratio (BIS guidelines)

(Basel III basis)

 

Consolidated

             (Billions of yen, %)
     Sep. 30, 2020
[Preliminary]
            Mar. 31, 2020    
     (a)    (a) - (b)      (b) 

(1) Total capital ratio (4) / (7)

   19.28      0.53       18.75  
       

(2) Tier 1 capital ratio (5) / (7)

   17.25      0.62       16.63  
       

(3) Common equity Tier 1 capital ratio (6) / (7)

   16.02      0.47       15.55  
       

(4) Total capital

   12,028.0      476.0       11,552.0  
       

(5) Tier 1 capital

   10,763.8      513.9       10,249.9  
       

(6) Common equity Tier 1 capital

   9,994.2      412.9       9,581.3  
       

(7) Risk weighted assets

   62,379.2      780.1       61,599.1  
       

(8) Required capital (7) X 8%

   4,990.3      62.4       4,927.9  
       

(9) Leverage Ratio

   5.85      1.54       4.31  

SMBC consolidated

        

(1) Total capital ratio

   18.16      0.10       18.06  
       

(2) Tier 1 capital ratio

   15.97      0.17       15.80  
       

(3) Common equity Tier 1 capital ratio

   13.73      0.03       13.70  
       

(4) Leverage Ratio

   5.32      1.35       3.97  

SMBC non-consolidated

        

(1) Total capital ratio

   17.63      0.02       17.61  
       

(2) Tier 1 capital ratio

   15.36      0.13       15.23  
       

(3) Common equity Tier 1 capital ratio

   13.01      (0.00)      13.01  
       

(4) Leverage Ratio

   5.20      1.35       3.85  

18. ROE

        

Consolidated

             (%)
     Six months ended
Sep. 30, 2020
           Six months ended Sep. 30, 2019
     (a)    (a) - (b)      (b)

ROE (denominator: Total stockholders’ equity)

   5.7      (3.7)      9.4  

 Note:

           

            ROE    (denominator: Total

  stockholders’ equity)

    =      (Profit attributable to owners of parent) x (Number of days in a year (365 days)) / (Number of days in the period (183 days))    X   100                         
   {(Total stockholders’ equity at the beginning of the period) + (Total stockholders’ equity at the end of the period)} / 2

 

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Sumitomo Mitsui Financial Group

 

19. Earnings targets and dividends forecast for FY3/2021

(1) Earnings targets

 

Consolidated

       

(Billions of yen)

 

  
       FY3/2021       

 

FY3/2020  

  
    

 

Result  

 

  

Consolidated net business profit

   970.0      1,085.0     

Total credit cost

   (450.0)     (170.6)    

Ordinary profit

   550.0      932.1     

Profit attributable to owners of parent

   400.0      703.9     
        

SMBC non-consolidated

     

(Billions of yen)

 

  
               FY3/2021       

 

FY3/2020  

  
        

 

Result  

 

  

Banking profit (before provision for

general reserve for possible loan losses)

   520.0      604.0     

Total credit cost

           (290.0)     (49.6)    

Ordinary profit

           240.0      483.9     

Net income

           170.0      317.4     

(2) Dividends forecast

        
        

(Yen)

 

            

 

FY3/2021

 

  

FY3/2020

 

             Interim     

 

  Annual     

   Result

Dividend per share for common stock

   95     190     190 

Reference:

        

(Billions of yen)

 

            

 

FY3/2021

 

  

FY3/2020

 

             Interim     

 

  Annual     

   Result

Total dividend

           130.2     260.4     260.2 

 

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Sumitomo Mitsui Financial Group

 

Reference: Financial Statements of SMBC

1. Condensed balance sheet

 

SMBC non-consolidated

   (Millions of yen)

 

           Sep. 30, 2020                       Mar. 31, 2020  
       (a)          (a) - (b)          (b)  
       

Assets

                                                                                                                                      
       

Cash and due from banks

     65,082,965          7,111,672          57,971,293   
       

Call loans

     2,052,324          1,406,357          645,967   
       

Receivables under resale agreements

     1,567,241          (4,396,136)         5,963,377   
       

Receivables under securities borrowing transactions

     1,254,809          310,869          943,940   
       

Monetary claims bought

     1,578,472          16,389          1,562,083   
       

Trading assets

     2,842,881          (347,099)         3,189,980   
       

Securities

     29,393,362          2,334,729          27,058,633   
       

Loans and bills discounted

     81,078,883          891,501          80,187,382   
       

Foreign exchanges

     1,908,391          12,234          1,896,157   
       

Other assets

     4,079,271          (98,992)         4,178,263   
       

Tangible fixed assets

     790,296          (4,661)         794,957   
       

Intangible fixed assets

     239,259          4,552          234,707   
       

Prepaid pension cost

     355,067          10,586          344,481   
       

Customers’ liabilities for acceptances and guarantees

     9,182,325          (217,199)         9,399,524   
       

Reserve for possible loan losses

     (365,231)         (85,529)         (279,702)  
       

Reserve for possible losses on investments

 

    

 

(148,125) 

 

 

 

    

 

(20,869) 

 

 

 

    

 

(127,256)

 

 

 

       

Total assets

 

    

 

200,892,198  

 

 

 

    

 

  6,928,407  

 

 

 

    

 

193,963,791 

 

 

 

Note: Amounts less than 1 million yen are rounded down.         

 

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Sumitomo Mitsui Financial Group

 

           (Millions of yen
           Sep. 30, 2020                       Mar. 31, 2020  
       (a)          (a) - (b)          (b)  
       

Liabilities

                                                                                                                                      
       

Deposits

     130,587,536          10,614,212          119,973,324    
       

Negotiable certificates of deposit

     10,469,033          (111,228)         10,580,261    
       

Call money

     683,438          (2,385,288)         3,068,726    
       

Payables under repurchase agreements

     7,078,409          (1,650,113)         8,728,522    
       

Payables under securities lending transactions

     852,074          280,979          571,095    
       

Commercial paper

     1,177,708          535,261          642,447    
       

Trading liabilities

     2,782,175          (177,438)         2,959,613    
       

Borrowed money

     22,912,843          1,351,666          21,561,177    
       

Foreign exchanges

     1,080,614          (439,163)         1,519,777    
       

Bonds

     1,436,660          (457,709)         1,894,369    
       

Due to trust account

     1,890,511          154,622          1,735,889    
       

Other liabilities

     2,358,934          (1,094,074)         3,453,008    
       

Reserve for employee bonuses

     12,443          (1,351)         13,794    
       

Reserve for executive bonuses

     —          (939)         939    
       

Reserve for point service program

     507          119          388    
       

Reserve for reimbursement of deposits

     1,313          (2,587)         3,900    
       

Deferred tax liabilities

     438,868          108,169          330,699    
       

Deferred tax liabilities for land revaluation

     30,047          (64)         30,111    
       

Acceptances and guarantees

 

    

 

9,182,325  

 

 

 

    

 

(217,199) 

 

 

 

    

 

9,399,524  

 

 

 

       

Total liabilities

 

    

 

192,975,447  

 

 

 

    

 

6,507,875  

 

 

 

    

 

186,467,572  

 

 

 

       

Net assets

              
       

Capital stock

     1,770,996          —          1,770,996    
       

Capital surplus

     1,774,554          —          1,774,554    
       

Capital reserve

     1,771,043          —          1,771,043    
       

Other capital surplus

     3,510          —          3,510    
       

Retained earnings

     2,944,676          68,929          2,875,747    
       

Other retained earnings

     2,944,676          68,929          2,875,747    
       

Voluntary reserve for retirement allowances

     1,656          —          1,656    
       

Voluntary reserve

     219,845          —          219,845    
       

Retained earnings brought forward

     2,723,174          68,928          2,654,246    
       

Treasury stock

     (210,003)         —          (210,003)   
       

Total stockholders’ equity

     6,280,224          68,929          6,211,295    
       

Net unrealized gains (losses) on other securities

     1,376,290          302,495          1,073,795    
       

Net deferred gains (losses) on hedges

     234,109          48,946          185,163    
       

Land revaluation excess

     26,126          162          25,964    
       

Total valuation and translation adjustments

 

    

 

1,636,526  

 

 

 

    

 

351,603  

 

 

 

    

 

1,284,923  

 

 

 

       

Total net assets

 

    

 

7,916,751  

 

 

 

    

 

420,532  

 

 

 

    

 

7,496,219  

 

 

 

       

Total liabilities and net assets

 

    

 

200,892,198  

 

 

 

    

 

6,928,407  

 

 

 

    

 

193,963,791 

 

 

 

Note: Amounts less than 1 million yen are rounded down.

 

 

- 19 -


Table of Contents

Sumitomo Mitsui Financial Group

 

2. Condensed income statement

 

SMBC non-consolidated

 

   (Millions of yen) 
       
    

 

    Six months ended     

Sep. 30, 2020 

(a)   

 

       

 

Six months ended 

Sep. 30, 2019 

(b)   

 

    

(a) - (b)    

 

 

Ordinary income

 

   1,178,938      (333,239)     1,512,177  

 

Interest income

 

   701,947      (291,753)     993,700  

Interest on loans and discounts

 

   494,053      (159,179)     653,232  

Interest and dividends on securities

 

   139,911      (32,556)     172,467  

Trust fees

 

   899      (49)     948  

Fees and commissions

 

   241,065      (11,533)     252,598  

Trading income

 

   50,136      (7,693)     57,829  

Other operating income

 

   126,866      17,117      109,749  

Other income

 

   58,022      (39,328)     97,350  

 

Ordinary expenses

 

   987,964      (232,142)     1,220,106  

 

Interest expenses

 

   266,334      (286,165)     552,499  

Interest on deposits

 

   57,978      (134,162)     192,140  

Fees and commissions payments

 

   96,926      (5,038)     101,964  

Trading losses

 

   343      343      —  

Other operating expenses

 

   8,748      (15,826)     24,574  

General and administrative expenses

 

   403,912      (5,054)     408,966  

Other expenses

 

   211,698      79,598      132,100  

 

Ordinary profit

 

   190,973      (101,098)