6-K 1 d42975d6k.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 February 2021

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-                   

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF SUMITOMO MITSUI FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-228913) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED, EXCEPT FOR THE STATEMENTS REGARDING OUR EARNINGS FORECAST UNDER THE CAPTION “3. EARNINGS FORECAST ON A CONSOLIDATED BASIS (FOR THE FISCAL YEAR ENDING MARCH 31, 2021).”


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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:    February 2, 2021


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February 2, 2021

 

LOGO   

Sumitomo Mitsui Financial Group, Inc.

Consolidated Financial Results for the Nine Months Ended December 31, 2020

<Under Japanese GAAP>

   LOGO

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: February 12, 2021

Investors meeting presentation for quarterly financial results: Not scheduled

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

1. Consolidated financial results (for the nine months ended December 31, 2020)

  (1) Operating results

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

        Ordinary income     Ordinary profit     Profit attributable to
owners of parent
 
             

Nine months ended December 31, 2020

       ¥  2,894,820            (16.8 )%        ¥   594,881          (26.7 )%        ¥   433,929          (29.0 )% 

Nine months ended December 31, 2019

       3,479,100            (4.4     811,829          (12.8     610,830          (4.2
Notes:   1.   Comprehensive income:                  
    (a) for the nine months ended December 31, 2020:     ¥     1,080,200 million     [52.4%]

 

    (b) for the nine months ended December 31, 2019:     ¥        708,774 million     [40.0%]

 

  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)
              

Nine months ended December 31, 2020

       ¥  316.70        ¥  316.55        

Nine months ended December 31, 2019

          443.60          443.33       

 

  (2) Financial position

                     
                            (Millions of yen, except percentages)    
                Total assets                     Net assets                     Net assets ratio          

December 31, 2020

       ¥  233,005,116       ¥  11,513,726               4.9%  

March 31, 2020

           219,863,518           10,784,903               4.9     
Notes:   1.   Stockholders’ equity:

 

    (a) as of December 31, 2020: ¥ 11,443,818 million   (b) as of March 31, 2020: ¥ 10,719,969 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, 2020

 

 

 

 

 

 

¥  —     

 

 

 

 

 

 

 

 

 

¥  90.00 

 

 

 

 

 

 

 

 

 

¥  —     

 

 

 

 

 

 

 

 

 

¥  100.00 

 

 

 

 

 

 

 

 

 

¥  190.00 

 

 

 

 

Fiscal year ending March 31, 2021

 

   

 

    —     

 

 

 

   

 

    95.00 

 

 

 

   

 

    —     

 

 

 

               

Fiscal year ending March 31, 2021 (Forecast)

 

                            95.00          190.00   
Note: Dividend forecast remains unchanged.          

3. Earnings forecast on a consolidated basis (for the fiscal year ending March 31, 2021)

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

                                                                                                                                                                         
         Profit  attributable to owners of parent       Earnings per  share

Fiscal year ending March 31, 2021

  ¥  400,000   (43.2)%   ¥  291.88
Notes:   1.   Earnings forecast remains unchanged.
  2.   Percentages shown in profit attributable to owners of parent is the increase (decrease) from the previous fiscal year.
  3.   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 December 31, 2020.


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* Notes

(1) There were no changes in material consolidated subsidiaries in the period.

(2) Special accounting methods used for preparing quarterly consolidated financial statements were adopted.

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

(3) 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)

   : Yes

(c) Changes in accounting estimates

   : No

(d) Restatements

   : No

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

(4) Number of shares issued (common stock)

 

   

   As of December 31, 2020   

         

    As of March 31, 2020      

                           

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

  1,374,040,061 shares     1,373,171,556 shares   

(b) Number of treasury stocks

         3,608,963 shares            3,645,043 shares   
   

Nine months ended  
December 31, 2020  

     

Nine months ended  
December 31, 2019  

    

(c) Average number of shares issued in the period

  1,370,141,779 shares     1,376,994,639 shares   

[Note on quarterly review process]

This report is out of the scope of the external auditor’s review procedure.

 

 

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.

 


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Sumitomo Mitsui Financial Group, Inc.

 

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1.

   Matters related to summary information (Notes)      2  
  

(1)     Application of special accounting methods used for preparing quarterly consolidated financial statements

     2  
  

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

     2  
  

(3)     Changes in accounting policies due to reasons other than above (2)

     2  

2.

   Consolidated financial statements      3  
  

(1)    Consolidated balance sheets

     3  
  

(2)     Consolidated statements of income and consolidated statements of comprehensive income

     4  
  

(3)    Note on going concern

     4  
  

(4)    Material changes in stockholders’ equity

     4  

Appendix: Financial results for the nine months ended December 31, 2020 supplementary information

 

- 1 -


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Sumitomo Mitsui Financial Group, Inc.

 

1. Matters related to summary information (Notes)

 

(1)

Application of special accounting methods used for preparing quarterly consolidated financial statements

The Company and certain domestic consolidated subsidiaries calculated tax expenses by multiplying Income before income taxes by an effective tax rate that was reasonably estimated by applying tax effect accounting to estimated Income before income taxes for the fiscal year ending March 31, 2021 including the period for the nine months ended December 31, 2020. Amounts of Income taxes include Income taxes-deferred.

 

(2)

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

Accounting Standard etc. for Fair Value Measurement

The Company applies “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4, 2019) and “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, July 4, 2019) from the beginning of the period for the three months ended June 30, 2020.

Due to the application, the measurement of the fair value of stocks with market price (including foreign stocks, hereinafter the same) in other securities is changed from the fair value method based on their average prices during the final month of fiscal year to the fair value method based on their fiscal year-end market prices. Derivative transactions are carried at fair value reflecting one’s own credit risks and counterparty’s credit risks etc.

As for stocks with market price, in accordance with transitional treatment stipulated in Item 19 of “Accounting standards for fair value measurement” and Item 44-2 of “Accounting standard for financial instrument”, (ASBJ Statement No.10, July 4, 2019) the company has applied new accounting policies since the beginning of the period for the three months ended June 30, 2020. As for fair value of derivative transactions, in accordance with transitional treatment stipulated in Item 20 of Accounting standards for fair value measurement, the cumulative effects are adjusted to “Retained earnings” of the beginning of the period for the nine months ended December 31, 2020, in the case that the new accounting policy is retroactively applied previous to the beginning of the period for the three months ended June 30, 2020.

As a result, “Trading assets” decreased by ¥66,010 million, “Other assets” decreased by ¥29,768 million, “Deferred tax assets” increased by ¥2,306 million, “Trading liabilities” decreased by ¥21,557 million, “Other liabilities” decreased by ¥14,495 million, “Deferred tax liabilities” decreased by ¥15,570 million, and “Retained earnings” decreased by ¥41,849 million at the beginning of the period for the nine months ended December 31, 2020.

 

(3)

Changes in accounting policies due to reasons other than above (2)

Changes in Recognition of installment-sales-related income and installment-sales-related expenses

As for recognition of installment-sales-related income and installment-sales-related expenses, Sumitomo Mitsui Finance and Leasing Company, Limited (Hereinafter, “SMFL”), which conducts leasing business, had been applying a method for which installment-sales-related income and installment-sales-related expenses are recognized on a due-date basis over the full period of the installment sales in accordance with “Implementation Guidance on Accounting Standards for Leasing Transactions” (ASBJ Guidance No.16, March 25, 2011). However, from the beginning of the period for the three months ended June 30, 2020, the net amount, which is calculated by deducting installment-sales-related expenses from installment-sales-related income, is recorded as “Interest on deferred payment.”

The change is made to properly reflect the fund transaction under the financial type installment-sales transactions on the consolidated financial statements due to SMFL became an equity method affiliate and other reasons.

These changes in accounting policies are applied retroactively, and therefore the quarterly consolidated financial statements for the nine months ended December 31, 2019 and the consolidated financial statements for the fiscal year ended March 31, 2020 reflect the retroactive application. As a result, comparing before and after the retroactive application, “Ordinary income”, “Ordinary expenses”, and “Other operating expenses” decreased by ¥542,446 million respectively, “Interest income” increased by ¥23,844 million, and “Other operating income” decreased by ¥566,291 million, and there are no effects on “Ordinary profit”, “Income before income taxes”, “Profit” and “Profit attributable to owners of parent” for the nine months ended December 31, 2019. There is also no cumulative effect on “Net assets” at the beginning of the fiscal year ended March 31, 2020.

 

- 2 -


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Sumitomo Mitsui Financial Group, Inc.

 

2. Consolidated financial statements

    (1) Consolidated balance sheets

 

     Millions of yen  
         March 31, 2020            December 31, 2020      

 

 

Assets:

     

Cash and due from banks

   ¥ 61,768,573        ¥ 69,296,024    

Call loans and bills bought

     896,739          2,567,080    

Receivables under resale agreements

     8,753,816          4,403,022    

Receivables under securities borrowing transactions

     5,005,103          4,991,008    

Monetary claims bought

     4,559,429          4,590,434    

Trading assets

     7,361,253          6,764,256    

Money held in trust

     353          310    

Securities

     27,128,751          34,118,251    

Loans and bills discounted

     82,517,609          83,936,025    

Foreign exchanges

     2,063,284          2,183,342    

Lease receivables and investment assets

     219,733          222,938    

Other assets

     8,298,393          8,665,573    

Tangible fixed assets

     1,450,323          1,471,043    

Intangible fixed assets

     753,579          749,354    

Net defined benefit asset

     230,573          381,035    

Deferred tax assets

     26,314          29,356    

Customers’ liabilities for acceptances and guarantees

     9,308,882          9,208,815    

Reserve for possible loan losses

     (479,197)         (572,756)   
  

 

 

    

 

 

 

Total assets

   ¥ 219,863,518        ¥ 233,005,116    
  

 

 

    

 

 

 

Liabilities:

     

Deposits

   ¥ 127,042,217        ¥ 139,722,833    

Negotiable certificates of deposit

     10,180,435          10,445,344    

Call money and bills sold

     3,740,539          1,646,879    

Payables under repurchase agreements

     13,237,913          12,925,633    

Payables under securities lending transactions

     2,385,607          2,135,263    

Commercial paper

     1,409,249          1,810,686    

Trading liabilities

     6,084,528          5,510,831    

Borrowed money

     15,210,894          17,530,442    

Foreign exchanges

     1,461,308          961,256    

Short-term bonds

     379,000          517,500    

Bonds

     9,235,639          8,605,083    

Due to trust account

     1,811,355          2,098,414    

Other liabilities

     7,011,967          7,571,272    

Reserve for employee bonuses

     73,868          49,073    

Reserve for executive bonuses

     3,362          —    

Net defined benefit liability

     35,777          36,059    

Reserve for executive retirement benefits

     1,270          1,050    

Reserve for point service program

     26,576          26,821    

Reserve for reimbursement of deposits

     4,687          783    

Reserve for losses on interest repayment

     142,890          114,682    

Reserves under the special laws

     3,145          3,663    

Deferred tax liabilities

     257,384          538,990    

Deferred tax liabilities for land revaluation

     30,111          30,009    

Acceptances and guarantees

     9,308,882          9,208,815    
  

 

 

    

 

 

 

Total liabilities

     209,078,615          221,491,390    
  

 

 

    

 

 

 

Net assets:

     

Capital stock

     2,339,964          2,341,274    

Capital surplus

     692,003          693,196    

Retained earnings

     6,336,311          6,412,912    

Treasury stock

     (13,983)         (13,687)   
  

 

 

    

 

 

 

Total stockholders’ equity

     9,354,296          9,433,696    
  

 

 

    

 

 

 

Net unrealized gains (losses) on other securities

     1,371,407          2,014,427    

Net deferred gains (losses) on hedges

     82,257          80,915    

Land revaluation excess

     36,878          37,047    

Foreign currency translation adjustments

     (32,839)         (123,383)   

Accumulated remeasurements of defined benefit plans

     (92,030)         1,114    
  

 

 

    

 

 

 

Total accumulated other comprehensive income

     1,365,673          2,010,122    
  

 

 

    

 

 

 

Stock acquisition rights

     2,064          1,798    

Non-controlling interests

     62,869          68,109    
  

 

 

    

 

 

 

Total net assets

     10,784,903          11,513,726    
  

 

 

    

 

 

 

Total liabilities and net assets

   ¥       219,863,518        ¥       233,005,116    
  

 

 

    

 

 

 

 

- 3 -


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Sumitomo Mitsui Financial Group, Inc.

 

(2) Consolidated statements of income and consolidated statements of comprehensive income

    (Consolidated statements of income)

     Millions of yen  
  

 

 

 
Nine months ended December 31                  2019                                      2020                

 

      

 

 

 

Ordinary income

   ¥ 3,479,100           ¥ 2,894,820     

Interest income

     1,915,252             1,369,224     

Interest on loans and discounts

     1,319,430             1,019,011     

Interest and dividends on securities

     249,199             196,888     

Trust fees

     3,396             3,385     

Fees and commissions

     961,201             947,126     

Trading income

     165,376             195,689     

Other operating income

     244,856             234,697     

Other income

     189,017             144,698     

Ordinary expenses

     2,667,271             2,299,939     

Interest expenses

     933,048             412,803     

Interest on deposits

     357,417             120,076     

Fees and commissions payments

     160,255             156,336     

Other operating expenses

     123,307             110,596     

General and administrative expenses

     1,299,281             1,279,352     

Other expenses

     151,379             340,851     
  

 

 

      

 

 

 

Ordinary profit

     811,829             594,881     
  

 

 

      

 

 

 

Extraordinary gains

     23,765             824     

Extraordinary losses

     4,163             8,633     
  

 

 

      

 

 

 

Income before income taxes

     831,431             587,071     
  

 

 

      

 

 

 

Income taxes

     204,996             151,654     
  

 

 

      

 

 

 

Profit

     626,434             435,417     
  

 

 

      

 

 

 

Profit attributable to non-controlling interests

     15,603             1,487     
  

 

 

      

 

 

 

Profit attributable to owners of parent

   ¥ 610,830           ¥ 433,929     
  

 

 

      

 

 

 

(Consolidated statements of comprehensive income)

       
     Millions of yen  
  

 

 

 
Nine months ended December 31    2019          2020  

 

      

 

 

 

Profit

   ¥          626,434           ¥          435,417     

Other comprehensive income

     82,340             644,783     

Net unrealized gains (losses) on other securities

     121,424             641,402     

Net deferred gains (losses) on hedges

     9,380             (5,587)    

Foreign currency translation adjustments

     (36,623)            (91,191)    

Remeasurements of defined benefit plans

     2,985             92,798     

Share of other comprehensive income of affiliates

     (14,826)            7,360     
  

 

 

      

 

 

 

Total comprehensive income

     708,774             1,080,200     
  

 

 

      

 

 

 

Comprehensive income attributable to owners of parent

     691,402             1,077,620     

Comprehensive income attributable to non-controlling interests

     17,371             2,580     

(3) Note on going concern

Not applicable.

(4) Material changes in stockholders’ equity

Not applicable.

 

- 4 -


Table of Contents

Sumitomo Mitsui Financial Group

 

 

Financial results

for the nine months

ended December 31, 2020

- Supplementary information -

 

  Table of contents

 

  

1.

  Operating results   Consolidated           Non-consolidated             1  

2.

  Interest spread (domestic)     Non-consolidated             3  

3.

  Non-performing loans (NPLs) based on
   the Financial Reconstruction Act
  Consolidated           Non-consolidated             3  

4.

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

5.

  Deposits and loans     Non-consolidated             5  

6.

  ROE   Consolidated                       5  

Notes:

1. Consolidated : Consolidated figures of Sumitomo Mitsui Financial Group, Inc.

2. Non-consolidated : Non-consolidated figures of Sumitomo Mitsui Banking Corporation (“SMBC”)

3. Capital ratio as of December 31, 2020 will be announced when it is fixed.

 


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Sumitomo Mitsui Financial Group

 

1. Operating results

 

Consolidated    

(Millions of yen)

 

         
      Nine months
ended
 December 31, 2020 (A)  
  Change
     (A) - (B)     
  Nine months
ended
  December 31, 2019 (B)  
Consolidated gross profit   1     2,070,386     (3,086)    2,073,472 
   

Net interest income

  2     956,420     (25,783)    982,203 
   

Trust fees

  3     3,385     (11)    3,396 
   

Net fees and commissions

  4     790,789     (10,157)    800,946 
   

Net trading income

  5     195,689     30,313     165,376 
   

Net other operating income

  6     124,101     2,553     121,548 
General and administrative expenses   7     (1,279,352)    19,929     (1,299,281)
Equity in gains (losses) of affiliates   8     19,586     (28,009)    47,595 
 
Consolidated net business profit   9     810,620     (11,166)    821,786 
 
Total credit cost   10     (234,765)    (138,307)    (96,458)
   

Credit costs

  11     (244,339)    (138,377)    (105,962)
        

Write-off of loans

  12     (90,761)    (20,506)    (70,255)
     

Provision for reserve for possible loan losses

  13     (139,306)    (107,102)    (32,204)
     

Others

  14     (14,271)    (10,769)    (3,502)
   

Recoveries of written-off claims

  15     9,573     69     9,504 
Gains (losses) on stocks   16     72,712     (21,139)    93,851 
Other income (expenses)   17     (53,685)    (46,334)    (7,351)
 
Ordinary profit   18     594,881     (216,948)    811,829 
 
Extraordinary gains (losses)   19     (7,809)    (27,410)    19,601 
   

Gains (losses) on disposal of fixed assets

  20     (562)    (951)    389 
   

Losses on impairment of fixed assets

  21     (7,134)    (4,491)    (2,643)
   

Gains on step acquisitions

  22     404     (21,593)    21,997 
Income before income taxes   23     587,071     (244,360)    831,431 
Income taxes   24     (151,654)    53,342     (204,996)
Profit   25     435,417     (191,017)    626,434 
Profit attributable to non-controlling interests   26     (1,487)    14,116     (15,603)
 
Profit attributable to owners of parent   27     433,929     (176,901)    610,830 
 
 

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.   Amounts of Income taxes include Income taxes-deferred.

4.   The Company changed the recognition of installment-sales-related income and installment-sales-related expenses from the beginning of this period and the change in accounting policies is applied retroactively for the nine months ended Decmber 31, 2019. As a result, comparing before and after the retroactive application, Net interest income increased by 23,844 million yen, and Net other operating income decreased by 23,844 million yen.

   

Number of consolidated subsidiaries and affiliates

   
            December 31, 2020       March 31, 2020
        Change
    Consolidated subsidiaries   28     177    3     174 
    Equity method affiliates   29     95    (6)    101 

 

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Sumitomo Mitsui Financial Group

 

SMBC non-consolidated         (Millions of yen)
             
          Nine months
ended
December 31, 2020 (A)  
 

Change

     (A) - (B)     

 

Nine months
ended

  December 31, 2019 (B)  

Gross banking profit   1     1,075,373     8,440     1,066,933 
   

Net interest income

  2     643,667     (8,514)    652,181 
   

Trust fees

  3     1,366     (72)    1,438 
   

Net fees and commissions

  4     228,189     (7,309)    235,498 
   

Net trading income

  5     61,102     (2,104)    63,206 
   

Net other operating income

  6     141,048     26,439     114,609 
           
   

     Gains (losses) on bonds

  7     107,412     18,350     89,062 
Expenses (excluding non-recurring losses)   8     (605,464)    2,783     (608,247)
   

Personnel expenses

  9     (240,178)    1,974     (242,152)
   

Non-personnel expenses

  10     (323,139)    4,744     (327,883)
   

Taxes

  11     (42,146)    (3,935)    (38,211)
 
Banking profit (before provision for general reserve for possible loan losses)   12     469,909     11,223     458,686 
         
    Gains (losses) on bonds   13     107,412     18,350     89,062 
   

Core banking profit (12-13)

  14     362,496     (7,127)    369,623 
     

excluding gains (losses) on cancellation of investment trusts

  15     341,238     (4,163)    345,401 
 
Provision for general reserve for possible loan losses   16     (102,468)    (101,626)    (842)
Banking profit   17     367,441     (90,402)    457,843 
Non-recurring gains (losses)   18     (42,252)    (8,962)    (33,290)
   

Credit costs

  19     (37,747)    (27,073)    (10,674)
   

Gains on reversal of reserve for possible loan losses

  20     —     —     —  
   

Recoveries of written-off claims

  21     20     (1)    21 
   

Gains (losses) on stocks

  22     47,462     (48,290)    95,752 
        

Gains on sales of stocks

  23     77,170     (43,606)    120,776 
     

Losses on sales of stocks

  24     (3,922)    15,004     (18,926)
     

Losses on devaluation of stocks

  25     (25,784)    (19,688)    (6,096)
   

Other non-recurring gains (losses)

  26     (51,988)    66,401     (118,389)
 
Ordinary profit   27     325,188     (99,365)    424,553 
 
Extraordinary gains (losses)   28     (4,427)    (2,357)    (2,070)
   

Gains (losses) on disposal of fixed assets

  29     (144)    (365)    221 
   

Losses on impairment of fixed assets

  30     (4,283)    (1,991)    (2,292)
Income before income taxes   31     320,761     (101,722)    422,483 
Income taxes   32     (93,222)    49,197     (142,419)
 
Net income   33     227,538     (52,525)    280,063 
 
         
       
Total credit cost (16+19+20+21)   34     (140,194)    (128,699)    (11,495)
   

Provision for general reserve for possible loan losses

  35     (102,468)    (101,626)    (842)
   

Write-off of loans

  36     (17,289)    (9,755)    (7,534)
   

Provision for specific reserve for possible loan losses

  37     (11,948)    (12,138)    190 
   

Losses on sales of delinquent loans

  38     (8,508)    (5,178)    (3,330)
   

Provision for loan loss reserve for specific overseas countries

  39     (0)    (0)    (0)
   

Recoveries of written-off claims

  40     20     (1)    21 
Notes:   1. Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.
  2. Amounts of Income taxes include Income taxes-deferred.

 

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Sumitomo Mitsui Financial Group

 

2. Interest spread (domestic)

 

                                                                                                                                               

SMBC non-consolidated

 

             

 

(%)

 

 

 

                                   Nine months ended
           


Nine months
ended
December 31,
2019 (B)


 
 
                                   December 31, 2020 (A)      
Change
  (A) - (B)  

 
     

April 1
-
 June 30  


 
   

July 1
-
 September 30  


 
   

October 1
-
 December 31 


 
 

Interest earned on loans and bills discounted (a)

    0.84       0.82       0.84         0.83         (0.08)       0.91  
Interest paid on deposits, etc. (b)     0.00       0.00       0.00       0.00       (0.00)       0.00  
Interest spread (a) - (b)     0.84       0.82       0.84       0.83       (0.08)       0.91  
       
Reference: After excluding loans to the Japanese government, etc.

 

     

Interest earned on loans and bills discounted (c) 

    0.87       0.85       0.87       0.86       (0.07)       0.93  
Interest spread (c) - (b)     0.87       0.85       0.87       0.86       (0.07)       0.93  

3. Non-performing loans (NPLs) based on the Financial Reconstruction Act

 

Consolidated

 

     

(Billions of yen)

 

            December 31, 2020                 March 31, 2020  
        Change from    March 31, 2020  
   

Bankrupt and quasi-bankrupt assets

  1     128.5       40.6       87.9 
   

Doubtful assets

  2     353.0       26.2       326.9 
   

Substandard loans

  3     276.2       40.7       235.5 
   

Total (A)

  4     757.7       107.5       650.3 
                     
   

Normal assets

  5     96,578.7       1,305.5       95,273.2 
   

Grand total (B)

  6     97,336.4       1,412.9       95,923.5 
         

 

(%)

 

   

NPL ratio (A/B)

  7     0.78       0.10       0.68 
         
 

Amount of direct reduction

       160.1       17.3       142.8 

SMBC non-consolidated

 

     

(Billions of yen)

 

            December 31, 2020                 March 31, 2020
        Change from    March 31, 2020  
   

Bankrupt and quasi-bankrupt assets

  8     113.4       40.4       73.0 
   

Doubtful assets

  9     270.9       10.0       260.8 
   

Substandard loans

  10     104.1       9.3       94.8 
   

Total (A)

  11     488.3       59.7       428.6 
                     
   

Normal assets

  12     93,742.0       944.6       92,797.4 
   

Grand total (B)

  13     94,230.3       1,004.3       93,226.0 
         

 

(%)

 

   

NPL ratio (A/B)

  14     0.52       0.06       0.46 
         
 

Amount of direct reduction

    109.2       13.8       95.4 
  Note: NPLs based on the Financial Reconstruction Act include loans, acceptances and guarantees, suspense payments, and other credit-type assets.

 

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Sumitomo Mitsui Financial Group

 

4. Unrealized gains (losses) on securities

 

Consolidated            

(Billions of yen)

 

                        December 31, 2020   March 31, 2020
             Balance sheet   amount        Net unrealized    gains (losses)            

 Balance sheet   

 amount   

     

 Net unrealized   

 gains (losses)   

                 
                       

 

 Change from    March 31, 2020  

 

    Gains         Losses    
    Held-to-maturity securities      1       22.3          (0.0)     (0.2)     0.0      0.0      282.4          0.1  
    Other securities      2       34,022.9          2,827.5      935.2      2,913.4      85.9      26,649.2          1,892.3  
     

Stocks

     3       3,485.4          2,038.2      768.6      2,082.8      44.6      2,736.8          1,269.6  
     

Bonds

     4       17,154.1          19.8      (1.7)     34.4      14.6      10,067.4          21.5  
       

Japanese government bonds

     5       13,843.1          (6.6)     0.5      4.1      10.7      7,087.9          (7.1) 
     

Others

     6       13,383.4          769.5      168.2      796.2      26.7      13,845.0          601.2  
       

Foreign bonds

     7       10,910.0          153.8      (101.9)     178.6      24.8      11,649.5          255.7  
    Other money held in trust      8       0.3          —      —      —      —      0.4          —  
    Total      9       34,045.5          2,827.5      935.0      2,913.4      86.0      26,931.9          1,892.5  
       

Stocks

     10       3,485.4          2,038.2      768.6      2,082.8      44.6      2,736.8          1,269.6  
       

Bonds

     11       17,176.4          19.8      (1.8)     34.4      14.6      10,349.8          21.7  
           

Others

     12       13,383.7          769.5      168.2      796.2      26.7      13,845.4          601.2  
SMBC non-consolidated            

(Billions of yen)

 

                        December 31, 2020   March 31, 2020
             Balance sheet   amount        Net unrealized    gains (losses)            

 Balance sheet   

 amount   

     

 Net unrealized   

 gains (losses)   

                 
                       

 

 Change from    March 31, 2020  

 

    Gains         Losses    
    Held-to-maturity securities      13       22.3          (0.0)     0.1      0.0      0.0      22.3          (0.1) 
   

Stocks of subsidiaries and affiliates

     14       4,236.2          (130.2)     (3.3)     1.0      131.2      4,182.0          (126.8) 
    Other securities      15       30,660.2          2,304.7      848.5      2,386.6      82.0      23,541.4          1,456.2  
     

Stocks

     16       3,311.3          1,969.3      758.5      2,011.9      42.6      2,576.6          1,210.7  
     

Bonds

     17       17,068.0          19.7      (1.7)     34.3      14.6      9,978.4          21.4  
       

Japanese government bonds

     18       13,838.1          (6.6)     0.5      4.1      10.7      7,083.9          (7.1) 
     

Others

     19       10,281.0          315.7      91.7      340.5      24.8      10,986.4          224.0  
       

Foreign bonds

     20       8,322.5          99.5      (83.8)     122.8      23.2      9,253.1          183.4  
   

Total

     21       34,918.7          2,174.4      845.2      2,387.7      213.2      27,745.8          1,329.2  
       

Stocks

     22       3,774.5          1,970.3      759.2      2,012.9      42.6      3,057.1          1,211.2  
       

Bonds

     23       17,090.3          19.7      (1.7)     34.3      14.6      10,000.7          21.4  
           

Others

     24       14,053.9          184.4      87.7      340.5      156.0      14,688.0          96.7  

 

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 nine months ended December 31, 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 4 billion yen and losses of 26.4 billion yen were recognized in the statements of income for the nine months ended December 31, 2020 and for the year ended March 31, 2020, respectively.

 

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Table of Contents

Sumitomo Mitsui Financial Group

 

5. Deposits and loans

 

SMBC non-consolidated        (Billions of yen)
         December 31, 2020                  March 31, 2020      
     

 Change from   

 March 31, 2020   

Domestic deposits

  111,149.3      8,965.3   102,184.0
   

Individual

  53,163.3    4,110.4     49,053.0

Note : The figures above exclude negotiable certificates of deposit and Japan offshore banking accounts.

 

Loans and bills discounted

  80,835.0       647.6     80,187.4
    Domestic offices (excluding offshore banking accounts)   57,151.8    2,538.4     54,613.3
    Overseas offices and offshore banking accounts   23,683.2    (1,890.8)     25,574.1

 

6. ROE

 

      
Consolidated            (%)
    

    Nine months ended     

    December 31, 2020     

       

    Nine months ended     

    December 31, 2019     

             Change        
ROE (denominator: Total stockholders’ equity)              6.1                (2.8)                 8.9

 

Note :

    (Profit attributable to owners of parent) X (Number of days in a year (365 days)) /         

 

  ROE

 

 

=  

 

  (Number of days in the period (275 days))   X 100                                
  {(Total stockholders’ equity at the beginning of the period) + (Total stockholders’ equity at the end of the period)} / 2           

 

- 5 -