6-K 1 d141890d6k.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 May 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NO. 333-228913) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED, EXCEPT FOR THE STATEMENTS REGARDING OUR EARNINGS FORECAST UNDER THE CAPTIONS “3. EARNINGS FORECAST ON A CONSOLIDATED BASIS (FOR THE FISCAL YEAR ENDING MARCH 31, 2022)” AND “(2) EARNINGS FORECAST FOR THE FISCAL YEAR ENDING MARCH 31, 2022 (FISCAL 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/ Jun Okahashi

  Name:    Jun Okahashi
  Title:      General Manager, Financial Accounting Dept.

Date:      May 14, 2021


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  May 14, 2021
  Sumitomo Mitsui Financial Group, Inc.   
  Consolidated financial results for the fiscal year ended March 31, 2021
  <Under Japanese GAAP>

 

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
Date of ordinary general meeting of shareholders: June 29, 2021    Date of payment of year-end dividends: June 30, 2021
Annual securities report (Yukashoken hokokusho) issuing date: June 29, 2021
Investors meeting presentation for financial results: Scheduled

 

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

1. Consolidated financial results (for the fiscal year ended March 31, 2021)

 

 

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

 

           Ordinary income         

 

              Ordinary profit            

        Profit attributable to     

  owners of parent

 
Fiscal year ended March 31, 2021    ¥     3,902,307              (15.0 )%    ¥        711,018              (23.7 )%    ¥     512,812              (27.1 )% 

Fiscal year ended March 31, 2020

     4,591,873              (4.4     932,064              (17.9     703,883              (3.1

 

     Notes:   1.   Comprehensive income:
   

(a) for the fiscal year ended March 31, 2021: ¥1,465,014 million [292.8%]

(b) for the fiscal year ended March 31, 2020: ¥372,971 million [(53.1)%]

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

 

                                                                                                                                                     
      Earnings
per share
   Earnings per
  share (Diluted)  
   Return on
net assets
   Ordinary profit
on total assets
       Ordinary profit     
on ordinary
income

Fiscal year ended March 31, 2021

   ¥    374.26      ¥    374.08    4.6%    0.3%    18.2%

Fiscal year ended March 31, 2020

         511.87            511.57     6.6         0.4        20.3   

     Note:     Equity in gains (losses) of affiliates:

  (a) for the fiscal year ended March 31, 2021: ¥24,972 million            (b) for the fiscal year ended March 31, 2020: ¥56,051 million

 

  (2) Financial position    (Millions of yen, except per share data and percentages) 
          Total assets        Net assets        Net assets ratio        Net assets per  share

As of March 31, 2021

   ¥  242,584,308      ¥      11,899,046        4.9%    ¥        8,629.73

As of March 31, 2020

       219,863,518              10,784,903        4.9                  7,827.50

 

     Notes:   1.   Stockholders’ equity:
    (a) as of March 31, 2021: ¥11,826,418 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

 

  (3) Cash flows    (Millions of yen) 
     

Cash flows from  

 operating activities   

  

Cash flows from  

investing activities  

  

Cash flows from  

financing activities  

  

Cash and cash  

equivalents at  

year-end  

Fiscal year ended March 31, 2021

   ¥      18,795,951    ¥      (7,679,878)    ¥      (562,580)    ¥      66,811,212

Fiscal year ended March 31, 2020

             7,087,460            (3,011,660)         (1,024,554)            56,097,807

 

2. Dividends on common stock    (Millions of yen, except per share data and percentages) 
      Cash dividends per share    Total  
dividends  
(annual)  
  

Dividend  

payout  

ratio  

   Ratio of
dividends
to net
assets
  

1st  

 quarter   

  

2nd  

 quarter   

  

3rd  

 quarter   

  

4th  

 quarter   

   Annual  

Fiscal year

                                       

ended March 31, 2020

   ¥ —    ¥ 90    ¥ —    ¥100    ¥190    ¥260,205    37.0%    2.4%

ended March 31, 2021

      —       95       —        95      190      260,381    50.8       2.3   

ending March 31, 2022 (forecast)

      —     100       —     100      200         45.7%     

 

 

     Notes:   1.   Dividend payout ratio = (Total dividends on common stock / Profit attributable to owners of parent) X 100
 

2.

  Ratio of dividends to net assets = Total dividends on common stock / {(Beginning balance of Stockholders’ equity + Ending balance of Stockholders’ equity) / 2}X 100

3. Earnings forecast on a consolidated basis (for the fiscal year ending March 31, 2022)

 

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

             Profit attributable to owners of  parent              

 

  

                   Earnings per share                  

 

Fiscal year ending March 31, 2022

               ¥    600,000    17.0%      ¥    437.82
     Notes:

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 March 31, 2021.


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[Notes]

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

(2) Changes in accounting policies, changes in accounting estimates and restatements

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

  :   Yes     

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

  :   Yes     

(c) Changes in accounting estimates

  :   No     

(d) Restatements

  :   No     

 

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

  

(3) Number of shares issued (common stock)

    

As of March 31, 2021

  

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

   3,612,302 shares                3,645,043 shares            
    

Fiscal year ended
March 31, 2021

  

Fiscal year ended
March 31, 2020

(c) Average number of shares issued in the year

   1,370,213,741 shares                1,375,118,034 shares            

 

  Note: Number of shares used in calculating “Earnings per share” (on a consolidated basis) is reported on page 15 “(Per share data)”.

[Reference] Summary of financial information on a non-consolidated basis

Non-consolidated financial results (for the fiscal year ended March 31, 2021)

    (1) Operating results                        (Millions of yen, except per share data and percentages)    
            Operating income      Operating profit      Ordinary profit        Net income  
   

Fiscal year

ended March 31, 2021

   ¥ 483,459      (42.0)%      ¥ 288,137      (54.9)%      ¥ 279,402      (55.6)%      ¥ 281,966      (55.7)%  
   

ended March 31, 2020

   833,835       59.6           639,310       83.7           629,263       84.4           636,128       34.1       
                         
           

Earnings  

per share  

  

Earnings  

per share (diluted)  

                   
 

Fiscal year

ended March 31, 2021

   ¥205.78    ¥205.68            
 

ended March 31, 2020

     462.60      462.33            
         Note: Percentages shown in operating income, operating profit, ordinary profit and net income are the increase (decrease) from the previous fiscal year.
    (2) Financial position                        (Millions of yen, except per share data and percentages)  
                  Total assets              Net assets      Net assets ratio      Net assets per share  
 

As of March 31, 2021

   ¥ 15,025,382    ¥ 5,983,656      39.8%      ¥ 4,364.96  
 

As of March 31, 2020

      14,225,470       5,966,267      41.9             4,354.94   

        Note: Stockholders’ equity

                (a) as of March 31, 2021: ¥5,981,865 million      (b) as of March 31, 2020: ¥5,964,203 million

[Note on audit procedures]

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

 

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

 


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Sumitomo Mitsui Financial Group, Inc.

 

Table of contents

 

I.

   Matters related to summary information (Notes)      2  

  1.

  

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

     2  

  2.

  

Changes in accounting policies due to reasons other than above 1.

     2  

II.

   Operating and financial review      3  

  1.

  

Consolidated operating results for the fiscal year ended March 31, 2021 (fiscal 2020)

     3  

  2.

  

Consolidated financial position as of March 31, 2021

     4  

III.

   Basic approach to the selection of accounting standards      4  

IV.

   Consolidated financial statements      5  

  1.

  

Consolidated balance sheets

     5  

  2.

  

Consolidated statements of income and consolidated statements of comprehensive income

     7  

  3.

  

Consolidated statements of changes in net assets

     9  

  4.

  

Consolidated statements of cash flows

     12  

  5.

  

Notes to consolidated financial statements

     14  
  

Note on going concern

     14  
  

Segment information

     14  
  

Per share data

     15  
  

Significant subsequent events

     15  

* Appendix: Financial results for the fiscal year ended March 31, 2021 supplementary information

 

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Sumitomo Mitsui Financial Group, Inc.

 

I. Matters related to summary information (Notes)

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

Accounting Standard etc. for Fair Value Measurement

The Company has applied “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 fiscal year ended March 31, 2021.

Due to this 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 Instruments,” (ASBJ Statement No.10, July 4, 2019), the Company has applied new accounting policies since the beginning of the fiscal year ended March 31, 2021. 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 fiscal year ended March 31, 2021, in the case that the new accounting policy is retroactively applied previous to the beginning of the fiscal year ended March 31, 2021.

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, “Retained earnings” decreased by ¥41,849 million, and “Net assets per share” decreased by ¥30.56 at the beginning of the fiscal year ended March 31, 2021.

2. Changes in accounting policies due to reasons other than above 1.

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 fiscal year ended March 31, 2021, the net amount, which is calculated by deducting installment-sales-related expenses from installment-sales-related income, has been recorded as “Interest on deferred payment.”

This 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 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 ¥722,440 million respectively, “Interest income” increased by ¥30,335 million, and “Other operating income” decreased by ¥752,775 million, and there are no effects on “Ordinary profit”, “Income before income taxes”, “Profit” and “Profit attributable to owners of parent” for the fiscal year ended March 31, 2020. There is also no cumulative effect on “Net assets” at the beginning of the fiscal year ended March 31, 2020.

 

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Sumitomo Mitsui Financial Group, Inc.

 

II. Operating and financial review

1. Consolidated operating results for the fiscal year ended March 31, 2021 (fiscal 2020)

 

  (1)  

Operating results

In fiscal 2020, net business profit decreased by ¥1.0 billion to ¥1,084.0 billion. The primary reasons were decrease in equity in gains of affiliates due to an increase in credit costs at SMBC Aviation Capital Limited and investees in Asia, despite an increase in gross profit resulting from strong performance in wealth management business and overseas securities business, and success of nimble portfolio management in the Global Markets Business Unit.

Total credit cost increased by ¥189.9 billion year-on-year to ¥360.5 billion, due to incurring credit costs both in domestic and global businesses resulting from the spread of the novel coronavirus disease (COVID-19), and precautionary provisions recorded in order to prepare for possible future losses.

As a result, ordinary profit decreased by ¥221.0 billion year-on-year to ¥711.0 billion.

In addition, profit attributable to owners of parent decreased by ¥191.1 billion year-on-year to ¥512.8 billion, because impairment losses on goodwill of Sumitomo Mitsui DS Asset Management Company, Limited were recognized.

 

Consolidated       (Billions of yen)        
                         
         

    Fiscal year ended    

March 31, 2021

 

    Change from the    

    fiscal year ended    
    March 31, 2020     

       
   

Net business profit

  ¥ 1,084.0        ¥ (1.0)                                                  
   

Gross profit

  2,806.2        37.6         
   

General and administrative expenses

  (1,747.1)       (7.5)        
   

Equity in gains of affiliates

  25.0        (31.1)        
   

Total credit cost

  (360.5)       (189.9)        
   

Ordinary profit

  711.0        (221.0)        
   

Profit attributable to owners of parent

  512.8        (191.1)        

SMBC non-consolidated

         
   

Banking profit *

  ¥ 665.2        ¥ 61.2         
   

Gross banking profit

  1,481.7        69.7         
   

Expenses (excluding non-recurring losses)

  (816.5)       (8.4)        
   

Total credit cost

  (242.7)       (193.1)        
   

Ordinary profit

  436.1        (47.9)        
   

Net income

  338.0        20.7         

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

 

  (2)

Earnings forecast for the fiscal year ending March 31, 2022 (fiscal 2021)

Earnings forecast for profit attributable to owners of parent is expected to amount to ¥ 600.0 billion.

 

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Sumitomo Mitsui Financial Group, Inc.

 

2. Consolidated financial position as of March 31, 2021

 

(1)    Assets and liabilities
  

Total assets as of March 31, 2021 were ¥242,584.3 billion, a year-on-year increase of ¥22,720.8 billion.

As for major account balances, loans and bills discounted increased by ¥2,615.1 billion to ¥85,132.7 billion year-on-year and deposits increased by ¥14,983.9 billion to ¥142,026.2 billion year-on-year.

(2)    Net assets
  

Net assets were ¥11,899.0 billion, a year-on-year increase of ¥1,114.1 billion. Stockholders’ equity within net assets was ¥9,513.4 billion, a year-on-year increase of ¥159.1 billion due to the contribution of profit attributable to owners of parent and the payment of cash dividends.

(3)    Cash flows
  

The Company generated ¥18,796.0 billion in cash flows from operating activities including interest received and paid, net changes in loans and bills discounted and deposits, a year-on-year increase in cash flows of ¥11,708.5 billion, used ¥7,679.9 billion in cash flows from investing activities including purchases and sale of securities and tangible fixed assets, a year-on-year decrease in cash flows of ¥4,668.2 billion, and used ¥562.6 billion in cash flows from financing activities including payment of dividends, a year-on-year increase in cash flows of ¥462.0 billion. Consequently, cash and cash equivalents amounted to ¥66,811.2 billion, a year-on-year increase of ¥10,713.4 billion.

III. Basic approach to the selection of accounting standards

The Company selects Japanese GAAP as our accounting standards.

Since American depository receipts (ADRs) of the Company are listed on the New York Stock Exchange, the Company separately prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), and the Company is considering the possibility of application of IFRS in the future.

 

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Sumitomo Mitsui Financial Group, Inc.

 

IV. Consolidated financial statements

1. Consolidated balance sheets

 

    Millions of yen  

March 31,

  2020     2021  

Assets:

   

Cash and due from banks

    ¥             61,768,573         ¥             72,568,875    

Call loans and bills bought

    896,739         2,553,463    

Receivables under resale agreements

    8,753,816         5,565,119    

Receivables under securities borrowing transactions

    5,005,103         5,827,448    

Monetary claims bought

    4,559,429         4,665,244    

Trading assets

    7,361,253         6,609,195    

Money held in trust

    353         309    

Securities

    27,128,751         36,549,043    

Loans and bills discounted

    82,517,609         85,132,738    

Foreign exchanges

    2,063,284         2,173,189    

Lease receivables and investment assets

    219,733         236,392    

Other assets

    8,298,393         8,590,785    

Tangible fixed assets

    1,450,323         1,458,991    

Assets for rent

    506,755         465,147    

Buildings

    341,505         370,531    

Land

    423,346         457,920    

Lease assets

    28,933         23,589    

Construction in progress

    46,138         17,394    

Other tangible fixed assets

    103,645         124,408    

Intangible fixed assets

    753,579         738,759    

Software

    440,407         475,360    

Goodwill

    194,289         147,508    

Lease assets

    986         769    

Other intangible fixed assets

    117,896         115,120    

Net defined benefit asset

    230,573         565,534    

Deferred tax assets

    26,314         29,840    

Customers’ liabilities for acceptances and guarantees

    9,308,882         9,978,396    

Reserve for possible loan losses

    (479,197)        (659,017)   
 

 

 

   

 

 

 

Total assets

    ¥           219,863,518         ¥           242,584,308    
 

 

 

   

 

 

 

 

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Sumitomo Mitsui Financial Group, Inc.

 

(continued)

    Millions of yen  

March 31,

  2020     2021  

Liabilities:

   

Deposits

    ¥           127,042,217        ¥         142,026,156   

Negotiable certificates of deposit

    10,180,435        12,570,617   

Call money and bills sold

    3,740,539        1,368,515   

Payables under repurchase agreements

    13,237,913        15,921,103   

Payables under securities lending transactions

    2,385,607        2,421,353   

Commercial paper

    1,409,249        1,686,404   

Trading liabilities

    6,084,528        5,357,649   

Borrowed money

    15,210,894        17,679,690   

Foreign exchanges

    1,461,308        1,113,037   

Short-term bonds

    379,000        585,000   

Bonds

    9,235,639        9,043,031   

Due to trust account

    1,811,355        2,321,223   

Other liabilities

    7,011,967        7,741,638   

Reserve for employee bonuses

    73,868        89,522   

Reserve for executive bonuses

    3,362        4,408   

Net defined benefit liability

    35,777        35,334   

Reserve for executive retirement benefits

    1,270        1,081   

Reserve for point service program

    26,576        24,655   

Reserve for reimbursement of deposits

    4,687        9,982   

Reserve for losses on interest repayment

    142,890        140,758   

Reserves under the special laws

    3,145        3,902   

Deferred tax liabilities

    257,384        532,193   

Deferred tax liabilities for land revaluation

    30,111        29,603   

Acceptances and guarantees

    9,308,882        9,978,396   
 

 

 

   

 

 

 

Total liabilities

    209,078,615        230,685,262   
 

 

 

   

 

 

 

Net assets:

   

Capital stock

    2,339,964        2,341,274   

Capital surplus

    692,003        693,205   

Retained earnings

    6,336,311        6,492,586   

Treasury stock

    (13,983)       (13,698)  
 

 

 

   

 

 

 

Total stockholders’ equity

    9,354,296        9,513,367   
 

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

    1,371,407        2,094,605   

Net deferred gains (losses) on hedges

    82,257        14,723   

Land revaluation excess

    36,878        36,251   

Foreign currency translation adjustments

    (32,839)       40,390   

Accumulated remeasurements of defined benefit plans

    (92,030)       127,080   
 

 

 

   

 

 

 

Total accumulated other comprehensive income

    1,365,673        2,313,051   
 

 

 

   

 

 

 

Stock acquisition rights

    2,064        1,791   

Non-controlling interests

    62,869        70,836   
 

 

 

   

 

 

 

Total net assets

    10,784,903        11,899,046   
 

 

 

   

 

 

 

Total liabilities and net assets

    ¥           219,863,518        ¥         242,584,308   
 

 

 

   

 

 

 

 

- 6 -


Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

2. Consolidated statements of income and consolidated statements of comprehensive income

(Consolidated statements of income)

 

    Millions of yen  

Year ended March 31,

  2020     2021  

Ordinary income

    ¥               4,591,873         ¥             3,902,307    

Interest income

    2,486,699         1,853,039    

Interest on loans and discounts

    1,693,016         1,367,726    

Interest and dividends on securities

    346,822         283,786    

Interest on call loans and bills bought

    15,890         11,896    

Interest on receivables under resale agreements

    31,449         10,056    

Interest on receivables under securities borrowing transactions

    21,247         4,407    

Interest on deposits with banks

    80,924         17,891    

Interest on lease transactions

    7,307         6,540    

Interest on deferred payment

    30,335         24,712    

Other interest income

    259,705         126,021    

Trust fees

    4,701         4,895    

Fees and commissions

    1,287,538         1,298,373    

Trading income

    262,826         199,647    

Other operating income

    297,290         365,761    

Lease-related income

    39,123         32,155    

Other

    258,166         333,606    

Other income

    252,816         180,589    

Recoveries of written-off claims

    12,414         12,850    

Other

    240,401         167,739    

Ordinary expenses

    3,659,809         3,191,288    

Interest expenses

    1,179,770         517,822    

Interest on deposits

    441,477         152,094    

Interest on negotiable certificates of deposit

    131,849         35,876    

Interest on call money and bills sold

    10,284         1,786    

Interest on payables under repurchase agreements

    131,320         7,097    

Interest on payables under securities lending transactions

    1,111         203    

Interest on commercial paper

    31,525         6,029    

Interest on borrowed money

    57,632         37,667    

Interest on short-term bonds

    29         63    

Interest on bonds

    220,874         204,509    

Other interest expenses

    153,666         72,492    

Fees and commissions payments

    204,188         204,352    

Other operating expenses

    186,511         193,354    

Lease-related expenses

    26,514         23,419    

Other

    159,997         169,935    

General and administrative expenses

    1,739,603         1,747,144    

Other expenses

    349,734         528,613    

Provision for reserve for possible loan losses

    70,571         233,875    

Other

    279,163         294,737    
 

 

 

   

 

 

 

Ordinary profit

    932,064         711,018    
 

 

 

   

 

 

 

 

- 7 -


Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

(continued)

 

    Millions of yen  

Year ended March 31,

  2020     2021  

Extraordinary gains

    ¥                    23,896        ¥             9,440   

Gains on disposal of fixed assets

    1,855        9,035   

Other extraordinary gains

    22,040        404   

Extraordinary losses

    67,314        48,222   

Losses on disposal of fixed assets

    1,910        4,939   

Losses on impairment of fixed assets

    65,106        42,525   

Provision for reserve for eventual future operating losses from financial instruments transactions

    297        757   
 

 

 

   

 

 

 

Income before income taxes

    888,646        672,237   
 

 

 

   

 

 

 

Income taxes-current

    213,526        225,523   

Income taxes-deferred

    (45,842)       (69,177)  
 

 

 

   

 

 

 

Income taxes

    167,684        156,346   
 

 

 

   

 

 

 

Profit

    720,962        515,890   
 

 

 

   

 

 

 

Profit attributable to non-controlling interests

    17,078        3,077   
 

 

 

   

 

 

 

Profit attributable to owners of parent

    ¥                703,883        ¥                512,812   
 

 

 

   

 

 

 

(Consolidated statements of comprehensive income)

 

    Millions of yen  

Year ended March 31,

  2020     2021  

Profit

    ¥                  720,962        ¥                515,890   

Other comprehensive income

    (347,990)       949,124   

Net unrealized gains (losses) on other securities

    (314,792)       718,428   

Net deferred gains (losses) on hedges

    166,177        (82,494)  

Land revaluation excess

    (39)       —   

Foreign currency translation adjustments

    (74,052)       80,177   

Remeasurements of defined benefit plans

    (84,420)       217,424   

Share of other comprehensive income of affiliates

    (40,864)       15,587   
 

 

 

   

 

 

 

Total comprehensive income

    372,971        1,465,014   
 

 

 

   

 

 

 

Comprehensive income attributable to owners of parent

    355,302        1,460,228   

Comprehensive income attributable to non-controlling interests

    17,669        4,785   

 

- 8 -


Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

3. Consolidated statements of changes in net assets

 

    Millions of yen        
    Stockholders’ equity        

Year ended March 31, 2020

  Capital
stock
    Capital
surplus
    Retained
earnings
    Treasury
stock
    Total        

Balance at the beginning of the fiscal year

   ¥ 2,339,443       ¥ 739,047       ¥ 5,992,247       ¥ (16,302)      ¥ 9,054,436     

Changes in the fiscal year

           

Issuance of new stock

    521        521            1,043     

Cash dividends

        (255,834)         (255,834)    

Profit attributable to owners of parent

        703,883          703,883     

Purchase of treasury stock

          (100,088)       (100,088)    

Disposal of treasury stock

      (250)         733        483     

Cancellation of treasury stock

      (101,673)         101,673        —     

Changes in shareholders’ interest due to transaction with non-controlling interests

      (47,565)           (47,565)    

Decrease due to decrease in subsidiaries

        (945)         (945)    

Decrease due to decrease in affiliates accounted for by the equity method

        (679)         (679)    

Reversal of land revaluation excess

        (435)         (435)    

Transfer from retained earnings to capital surplus

      101,923        (101,923)         —     

Net changes in items other than stockholders’ equity in the fiscal year

           
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Net changes in the fiscal year

    521        (47,044)       344,064        2,318        299,860     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Balance at the end of the fiscal year

   ¥ 2,339,964       ¥ 692,003       ¥ 6,336,311       ¥ (13,983)      ¥ 9,354,296     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   
    Millions of yen  
    Accumulated other comprehensive income  

Year ended March 31, 2020

    Net unrealized  
gains (losses)
on other
securities
    Net deferred
  gains (losses)  

on hedges
    Land
  revaluation  
excess
    Foreign
currency
translation
  adjustments  
    Accumulated
  remeasurements  
of defined
benefit plans
    Total  

Balance at the beginning of the fiscal year

   ¥ 1,688,852       ¥ (54,650)      ¥ 36,547       ¥ 50,379       ¥ (7,244)      ¥ 1,713,884   

Changes in the fiscal year

           

Issuance of new stock

           

Cash dividends

           

Profit attributable to owners of parent

           

Purchase of treasury stock

           

Disposal of treasury stock

           

Cancellation of treasury stock

           

Changes in shareholders’ interest due to transaction with non-controlling interests

           

Decrease due to decrease in subsidiaries

           

Decrease due to decrease in affiliates accounted for by the equity method

           

Reversal of land revaluation excess

           

Transfer from retained earnings to capital surplus

           

Net changes in items other than stockholders’ equity in the fiscal year

    (317,445)       136,907        331        (83,219)       (84,785)       (348,211)  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net changes in the fiscal year

    (317,445)       136,907        331        (83,219)       (84,785)       (348,211)  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the fiscal year

   ¥        1,371,407       ¥            82,257       ¥            36,878       ¥          (32,839)      ¥          (92,030)      ¥        1,365,673   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 9 -


Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

(Continued)

Year ended March 31, 2020

  Millions of yen                    
  Stock
acquisition
rights
    Non-
controlling
interests
    Total net
assets
                   

Balance at the beginning of the fiscal year

   ¥ 4,750        ¥ 678,540        ¥ 11,451,611                                           

Changes in the fiscal year

           

Issuance of new stock

        1,043          

Cash dividends

        (255,834)         

Profit attributable to owners of parent

        703,883          

Purchase of treasury stock

        (100,088)         

Disposal of treasury stock

        483          

Cancellation of treasury stock

        —          

Changes in shareholders’ interest due to transaction with non-controlling interests

        (47,565)         

Decrease due to decrease in subsidiaries

        (945)         

Decrease due to decrease in affiliates accounted for by the equity method

        (679)         

Reversal of land revaluation excess

        (435)         

Transfer from retained earnings to capital surplus

        —          

Net changes in items other than stockholders’ equity in the fiscal year

    (2,685)        (615,671)        (966,568)         
 

 

 

   

 

 

   

 

 

       

Net changes in the fiscal year

    (2,685)        (615,671)        (666,708)         
 

 

 

   

 

 

   

 

 

       

Balance at the end of the fiscal year

   ¥               2,064       ¥           62,869        ¥      10,784,903          
 

 

 

   

 

 

   

 

 

       

Year ended March 31, 2021

  Millions of yen        
  Stockholders’ equity        
  Capital
stock
    Capital
surplus
    Retained
earnings
    Treasury
stock
    Total        

Balance at the beginning of the fiscal year

   ¥ 2,339,964        ¥ 692,003        ¥ 6,336,311        ¥ (13,983)       ¥ 9,354,296      

Cumulative effects of changes in accounting policies

        (41,849)          (41,849)     

Restated balance

    2,339,964         692,003         6,294,462         (13,983)        9,312,447      

Changes in the fiscal year

           

Issuance of new stock

    1,309         1,308             2,618      

Cash dividends

        (267,143)          (267,143)     

Profit attributable to owners of parent

        512,812           512,812      

Purchase of treasury stock

          (61)        (61)     

Disposal of treasury stock

      (65)          347         281      

Changes in shareholders’ interest due to transaction with non-controlling interests

      (106)            (106)     

Decrease due to decrease in affiliates accounted for by the equity method

        (48,054)          (48,054)     

Reversal of land revaluation excess

        574           574      

Transfer from retained earnings to capital surplus

      65         (65)          —      

Net changes in items other than stockholders’ equity in the fiscal year

           
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Net changes in the fiscal year

    1,309         1,202         198,123         285         200,920      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Balance at the end of the fiscal year

   ¥    2,341,274        ¥    693,205        ¥    6,492,586        ¥           (13,698)       ¥        9,513,367      
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

- 10 -


Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

(Continued)

 

     Millions of yen  
     Accumulated other comprehensive income  

Year ended March 31, 2021

     Net unrealized  
gains (losses)
on other
securities
     Net deferred
  gains (losses)  
on hedges
     Land
  revaluation  
excess
     Foreign
currency
translation
  adjustments  
     Accumulated
remeasurements
of defined
benefit plans
     Total  

Balance at the beginning of the fiscal year

    ¥ 1,371,407         ¥ 82,257         ¥             36,878         ¥ (32,839)        ¥ (92,030)        ¥ 1,365,673    

Cumulative effects of changes in accounting policies

                 

Restated balance

     1,371,407          82,257          36,878          (32,839)         (92,030)         1,365,673    

Changes in the fiscal year

                 

Issuance of new stock

                 

Cash dividends

                 

Profit attributable to owners of parent

                 

Purchase of treasury stock

                 

Disposal of treasury stock

                 

Changes in shareholders’ interest due to transaction with non-controlling interests

                 

Decrease due to decrease in affiliates accounted for by the equity method

                 

Reversal of land revaluation excess

                 

Transfer from retained earnings to capital surplus

                 

Net changes in items other than stockholders’ equity in the fiscal year

     723,198          (67,533)         (627)         73,229          219,110          947,377    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net changes in the fiscal year

     723,198          (67,533)         (627)         73,229          219,110          947,377    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Balance at the end of the fiscal year

    ¥ 2,094,605         ¥ 14,723         ¥ 36,251         ¥ 40,390         ¥ 127,080         ¥ 2,313,051    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     Millions of yen                       

Year ended March 31, 2021

   Stock
acquisition
rights
     Non-
controlling
interests
     Total net
assets
                      

Balance at the beginning of the fiscal year

    ¥               2,064         ¥           62,869         ¥      10,784,903             

Cumulative effects of changes in accounting policies

           (41,849)            

Restated balance

     2,064          62,869          10,743,054             

Changes in the fiscal year

                 

Issuance of new stock

           2,618             

Cash dividends

           (267,143)            

Profit attributable to owners of parent

           512,812             

Purchase of treasury stock

           (61)            

Disposal of treasury stock

           281             

Changes in shareholders’ interest due to transaction with non-controlling interests

           (106)            

Decrease due to decrease in affiliates accounted for by the equity method

           (48,054)            

Reversal of land revaluation excess

           574             

Transfer from retained earnings to capital surplus

           —             

Net changes in items other than stockholders’ equity in the fiscal year

     (272)         7,967          955,071             
  

 

 

    

 

 

    

 

 

          

Net changes in the fiscal year

     (272)         7,967          1,155,992             
  

 

 

    

 

 

    

 

 

          

Balance at the end of the fiscal year

    ¥ 1,791         ¥ 70,836         ¥  11,899,046             
  

 

 

    

 

 

    

 

 

          

 

- 11 -


Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

4. Consolidated statements of cash flows

 

     Millions of yen  

Year ended March 31,

   2020      2021  

Cash flows from operating activities:

                                                                                   

Income before income taxes

    ¥         888,646           ¥ 672,237      

Depreciation

     209,198            207,815      

Losses on impairment of fixed assets

     65,106            42,525      

Amortization of goodwill

     17,533            19,365      

Net (gains) losses on step acquisitions

     (22,040)           (404)     

Equity in net (gains) losses of affiliates

     (56,051)           (24,972)     

Net change in reserve for possible loan losses

     13,411            177,227      

Net change in reserve for employee bonuses

     3,103            15,158      

Net change in reserve for executive bonuses

     201            1,061      

Net change in net defined benefit asset and liability

     101,532            (335,174)     

Net change in reserve for executive retirement benefits

     (84)           (235)     

Net change in reserve for point service program

     2,627            (1,920)     

Net change in reserve for reimbursement of deposits

     (3,249)           5,294      

Net change in reserve for losses on interest repayment

     (4,703)           (2,132)     

Interest income

     (2,486,699)           (1,853,039)     

Interest expenses

     1,179,770            517,822      

Net (gains) losses on securities

     (143,877)           (174,302)     

Net (gains) losses from money held in trust

     (0)           (0)     

Net exchange (gains) losses

     118,815            (398,722)     

Net (gains) losses from disposal of fixed assets

     54            (4,096)     

Net change in trading assets

     (1,859,195)           578,416      

Net change in trading liabilities

     1,930,360            (223,323)     

Net change in loans and bills discounted

     (4,839,243)           (2,316,636)     

Net change in deposits

     5,064,595            14,626,281      

Net change in negotiable certificates of deposit

     (982,400)           2,388,038      

Net change in borrowed money (excluding subordinated borrowings)

     4,844,384            2,454,998      

Net change in deposits with banks

     (1,455,747)           (10,577)     

Net change in call loans and bills bought and others

     (812,970)           1,377,379      

Net change in receivables under securities borrowing transactions

     (907,630)           (822,344)     

Net change in call money and bills sold and others

     4,256,015            364,533      

Net change in commercial paper

     (882,878)           307,253      

Net change in payables under securities lending transactions

     572,787            35,745      

Net change in foreign exchanges (assets)

     (346,503)           (110,014)     

Net change in foreign exchanges (liabilities)

     296,890            (353,210)     

Net change in lease receivables and investment assets

     17,309            (3,878)     

Net change in short-term bonds (liabilities)

     294,500            206,000      

Issuance and redemption of bonds (excluding subordinated bonds)

     152,729            (97,531)     

Net change in due to trust account

     458,581            509,868      

Interest received

     2,501,815            1,909,880      

Interest paid

     (1,201,792)           (559,951)     

Other, net

     386,091            (189,032)     
  

 

 

    

 

 

 

Subtotal

     7,370,996            18,935,404      
  

 

 

    

 

 

 

Income taxes paid

     (283,536)           (139,452)     
  

 

 

    

 

 

 

Net cash provided by (used in) operating activities

                 7,087,460                    18,795,951      
  

 

 

    

 

 

 

 

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Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

(continued)

 

     Millions of yen  

Year ended March 31,

   2020      2021  

Cash flows from investing activities:

                                                                                   

Purchases of securities

     (35,544,708)           (41,807,504)     

Proceeds from sale of securities

     23,204,983            17,221,557      

Proceeds from redemption of securities

     9,550,000            17,208,608      

Purchases of money held in trust

     (284)           (0)     

Proceeds from sale of money held in trust

     321            44      

Purchases of tangible fixed assets

     (103,052)           (145,946)     

Proceeds from sale of tangible fixed assets

     19,206            26,434      

Purchases of intangible fixed assets

     (147,784)           (178,765)     

Purchases of stocks of subsidiaries resulting in change in scope of consolidation

     (17,365)           (4,305)     

Proceeds from sale of stocks of subsidiaries resulting in change in scope of consolidation

     27,021            —      
  

 

 

    

 

 

 

Net cash provided by (used in) investing activities

     (3,011,660)           (7,679,878)     
  

 

 

    

 

 

 

Cash flows from financing activities:

     

Repayment of subordinated borrowings

     (8,000)           —      

Proceeds from issuance of subordinated bonds and bonds with stock acquisition rights

     139,405            194,103      

Redemption of subordinated bonds and bonds with stock acquisition rights

     (113,000)           (488,640)     

Dividends paid

     (255,771)           (267,119)     

Proceeds from issuance of common stock to non-controlling stockholders

     —            100      

Repayment to non-controlling stockholders

     (436,500)           —      

Dividends paid to non-controlling stockholders

     (16,922)           (1,244)     

Purchases of treasury stock

     (100,088)           (61)     

Proceeds from disposal of treasury stock

     483            281      

Purchases of stocks of subsidiaries not resulting in change in scope of consolidation

     (234,159)           0      
  

 

 

    

 

 

 

Net cash provided by (used in) financing activities

     (1,024,554)           (562,580)     
  

 

 

    

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (74,480)           159,912      
  

 

 

    

 

 

 

Net change in cash and cash equivalents

     2,976,764            10,713,405      
  

 

 

    

 

 

 

Cash and cash equivalents at the beginning of the fiscal year

     53,120,963            56,097,807      
  

 

 

    

 

 

 

Net change in cash and cash equivalents resulting from business combinations between subsidiaries

     79            —      
  

 

 

    

 

 

 

Cash and cash equivalents at the end of the fiscal year

    ¥         56,097,807          ¥         66,811,212      
  

 

 

    

 

 

 

 

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Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

5. Notes to consolidated financial statements

(Note on going concern)

     Not applicable.

(Segment information)

 

  1.   Information on profit and loss amount by reportable segment

 

     Millions of yen  

Fiscal year ended March 31, 2021

   Wholesale
Business
Unit
     Retail
Business
Unit
     Global
Business
Unit
     Global Markets
Business
Unit
     Head office
account and
others
     Total  

Consolidated gross profit

       ¥ 634,900              ¥ 1,127,400              ¥ 723,700              ¥ 460,700              ¥ (140,513)             ¥ 2,806,187      

General and administrative expenses

     (299,900)           (910,400)           (383,300)           (82,900)           (70,644)           (1,747,144)     

Others

     53,500            2,200            26,300            35,700            (92,728)           24,972      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Consolidated net business profit

       ¥ 388,500              ¥ 219,200              ¥ 366,700              ¥ 413,500              ¥ (303,885)             ¥ 1,084,015      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Notes:

  1.

Figures shown in the parenthesis represent the loss.

  2.

“Others” includes equity in profit and loss of affiliates and cooperated profit and loss based on internal managerial accounting.

  3.

“Head office account and others” includes profit or loss to be eliminated as inter-segment transactions.

  4.

“International Business Unit” was renamed as “Global Business Unit” as of April 1, 2020.

 

  2.   Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on consolidated statements of income (adjustment of difference)

 

Fiscal year ended March 31, 2021

  

  Millions of yen    

    

Consolidated net business profit

   ¥1,084,015      

Other ordinary income (excluding equity in gains of affiliates)            

   155,617      

Other ordinary expenses

   (528,613)     
  

 

  

Ordinary profit on consolidated statements of income

   ¥711,018      
  

 

  
Note: Figures shown in the parenthesis represent the loss.

 

 

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Table of Contents

Sumitomo Mitsui Financial Group, Inc.

 

(Per share data)

 

As of and year ended March 31, 2021

       Yen

Net assets per share

     ¥8,629.73  

Earnings per share

     374.26  

Earnings per share (diluted)

     374.08  

(Notes)

1. Earnings per share and earnings per share (diluted) are calculated based on the followings:

 

Year ended March 31, 2021        Millions of yen, except number of shares  

Earnings per share

    

Profit attributable to owners of parents

     ¥512,812  

Amount not attributable to common stockholders

     —  

Profit attributable to owners of parents attributable to common stock

     512,812  

Average number of common stock during the fiscal year (in thousands)

     1,370,213  

Earnings per share (diluted)

    

Adjustment for profit attributable to owners of parents

     (0) 

Adjustment of dilutive shares issued by consolidated subsidiaries and equity method affiliates

     (0) 

Increase in number of common stock (in thousands)

     658  

Stock acquisition rights (in thousands)

     658  

Outline of dilutive shares which were not included in the calculation of “Earnings per share (diluted)” because they do not have dilutive effect:

     —  

2. Net assets per share is calculated based on the followings:

 

March 31, 2021        Millions of yen, except number of shares  

Net assets

     ¥11,899,046  

Amount excluded from Net assets

     72,627  

Stock acquisition rights

     1,791  

Non-controlling interests

     70,836  

Net assets attributable to common stock at the fiscal year-end

     11,826,418  

Number of common stock at the fiscal year-end used for the calculation of Net assets per share (in thousands)

     1,370,427  

(Significant subsequent events)

There are no significant subsequent events to be disclosed.

 

- 15 -