6-K 1 d141104d6k.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-________  

 


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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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Financial Results

Fiscal Year 3/2021

  - Supplementary Information -  

 

Sumitomo Mitsui Financial Group, Inc.


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Table of contents

Page

 

  1.

  Income analysis   Consolidated     Non-consolidated                  1

  2.

  Interest spread (domestic)     Non-consolidated                  3

  3.

  Gains (losses) on securities     Non-consolidated                  3

  4.

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

  5.

  Balance of securities, classified by maturity     Non-consolidated                  5

  6.

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

  7.

  Employee retirement benefits   Consolidated     Non-consolidated                  6

  8.

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

  9.

  Risk-monitored loans   Consolidated     Non-consolidated                  8

10.

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

11.

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

12.

  Results of off-balancing of NPLs     Non-consolidated                  10

13.

  Loan portfolio, classified by industry     Non-consolidated                  11

14.

  Loan portfolio, classified by country     Non-consolidated                  13

15.

  Balance of deposits and loans     Non-consolidated                  14

16.

  Deferred tax assets and liabilities        Non-consolidated                  15

17.

  Capital ratio (BIS guidelines)   Consolidated     Non-consolidated                  16

18.

  ROE   Consolidated                  16

19.

  Earnings targets and dividends forecast for FY3/2022   Consolidated     Non-consolidated                  17

Reference: Financial statements of SMBC

    Non-consolidated                  18

 

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

 

This document contains “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of us and our managements with respect to our future financial condition and results of operations. In many cases but not all, these statements contain words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “risk,” “project,” “should,” “seek,” “target,” “will” and similar expressions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward-looking statements contained or deemed to be contained herein. The risks and uncertainties which may affect future performance include: deterioration of Japanese and global economic conditions and financial markets; declines in the value of our securities portfolio; our ability to successfully implement our business strategy through our subsidiaries, affiliates and alliance partners; exposure to new risks as we expand the scope of our business; and incurrence of significant credit-related costs. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the date of this document. We undertake no obligation to update or revise any forward-looking statements.

Please refer to our most recent disclosure documents such as our annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as our earnings press releases, for a more detailed description of the risks and uncertainties that may affect our financial conditions and our operating results, and investors’ decisions.


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Sumitomo Mitsui Financial Group

 

 1. Income analysis

 

 Consolidated         (Millions of yen)
        FY3/2021       FY3/2020
     

 

    Change        

 

         

Consolidated gross profit

    2,806,187      37,600      2,768,587   
           
   

Net interest income

    1,335,216      28,288      1,306,928   
           
   

Trust fees

    4,895      194      4,701   
           
   

Net fees and commissions

    1,094,021      10,671      1,083,350   
           
   

Net trading income

    199,647      (63,179)     262,826   
           
   

Net other operating income

    172,406      61,627      110,779   
         
General and administrative expenses     (1,747,144)     (7,541)     (1,739,603)  
         
Equity in gains (losses) of affiliates     24,972      (31,079)     56,051   
 
         
Consolidated net business profit     1,084,015      (1,019)     1,085,034   
 
         
Total credit cost   10    (360,520)     (189,871)     (170,649)  
           
   

Credit costs

  11    (373,371)     (190,307)     (183,064)  
             

    

        

Write-off of loans

  12    (117,415)     (12,108)     (105,307)  
             
     

Provision for reserve for possible loan losses

  13    (233,875)     (163,304)     (70,571)  
             
     

Others

  14    (22,080)     (14,894)     (7,186)  
           
   

Recoveries of written-off claims

  15    12,850      436      12,414   
         
Gains (losses) on stocks   16    92,556      12,072      80,484   
         
Other income (expenses)   17    (105,032)     (42,228)     (62,804)  
 
         
Ordinary profit   18    711,018      (221,046)     932,064   
 
         
Extraordinary gains (losses)   19    (38,781)     4,637      (43,418)  
           
   

Gains (losses) on disposal of fixed assets

  20    4,096      4,150      (54)  
           
   

Losses on impairment of fixed assets

  21    (42,525)     22,581      (65,106)  
           
   

Gains on step acquisitions

  22    404      (21,636)     22,040   
         
Income before income taxes   23    672,237      (216,409)     888,646   
         
Income taxes - current   24    (225,523)     (11,997)     (213,526)  
         
Income taxes - deferred   25    69,177      23,335      45,842   
         
Profit   26    515,890      (205,072)     720,962   
         
Profit attributable to non-controlling interests   27    (3,077)     14,001      (17,078)  
 
Profit attributable to owners of parent   28    512,812      (191,071)     703,883   
 
Notes:  

1. Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.

 

2. Consolidated gross profit = (Interest income - Interest expenses) + Trust fees + (Fees and commissions - Fees and commissions payments)

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

 

3. The Company changed the recognition of installment-sales-related income and installment-sales-related expenses from the fiscal year

    ended March 31, 2021 and the change in accounting policies is applied retroactively for the year ended March 31, 2020.

    As a result, comparing before and after the retroactive application, Net interest income increased by 30,335 million yen,

    and Net other operating income decreased by 30,335 million yen.

 

Number of consolidated subsidiaries and affiliates

       
            Mar. 31, 2021         Mar. 31, 2020
     

 

Change

 

 

Consolidated subsidiaries

  29              177      3                 174   
 

Equity method affiliates

  30   98      (3)     101   

 

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Sumitomo Mitsui Financial Group

 

SMBC non-consolidated         (Millions of yen)
                      FY3/2021           FY3/2020
         

 

        Change        

 

Gross banking profit   1          1,481,662          69,655          1,412,007     
   

Gross domestic profit

  2     766,195          3,502          762,693     
          

Net interest income

  3     583,507          21,829          561,678     
     

Trust fees

  4     2,022          (19)         2,041     
     

Net fees and commissions

  5     176,183          (6,226)         182,409     
     

Net trading income

  6     (352)         (1,466)         1,114     
     

Net other operating income

  7     4,835          (10,614)         15,449     
             
     

  Gains (losses) on bonds

  8     3,044      5,474     (2,430) 
   

Gross international profit

  9     715,466          66,152          649,314     
     

Net interest income

  10     352,855          36,442          316,413     
     

Net fees and commissions

  11     154,555          13,638          140,917     
     

Net trading income

  12     17,136          (93,404)         110,540     
     

Net other operating income

  13     190,919          109,477          81,442     
             
     

  Gains (losses) on bonds

  14     76,938      304     76,634 
Expenses (excluding non-recurring losses)   15     (816,488)         (8,436)         (808,052)    
         

Overhead ratio

  16     55.1%      (2.1%)     57.2% 
    Personnel expenses   17     (326,773)         (7,218)         (319,555)    
    Non-personnel expenses   18     (439,914)         (1,632)         (438,282)    
    Taxes   19     (49,801)         413          (50,214)    
 
Banking profit (before provision for
general reserve for possible loan losses)
  20     665,173          61,218          603,955     
         

Gains (losses) on bonds

  21     79,983      5,780     74,203 
   

Core Banking Profit (20-21)

  22     585,189          55,437          529,752     
             
       

excluding gains (losses) on cancellation of investment trusts

  23     551,401          45,616          505,785     
 
Provision for general reserve for possible loan losses   24     (162,493)         (145,279)         (17,214)    
Banking profit   25     502,679          (84,062)         586,741     
Non-recurring gains (losses)   26     (66,617)         36,179          (102,796)    
    Credit costs   27     (80,259)         (47,807)         (32,452)    
    Gains on reversal of reserve for possible loan losses   28     -          -          -       
    Recoveries of written-off claims   29     21          (1)         22     
    Gains (losses) on stocks   30     63,532          11,668          51,864     
    Other non-recurring gains (losses)   31     (49,911)         72,320          (122,231)    
 
Ordinary profit   32     436,062          (47,882)         483,944     
 
Extraordinary gains (losses)   33     (667)         2,299          (2,966)    

    

  Gains (losses) on disposal of fixed assets   34     4,743          4,733          10     
    Losses on impairment of fixed assets   35     (5,410)         (2,433)         (2,977)    
Income before income taxes   36     435,394          (45,583)         480,977     
Income taxes - current   37     (156,024)         258          (156,282)    
Income taxes - deferred   38     58,666          65,979          (7,313)    
 
Net income   39     338,036          20,655          317,381     
 
           
Total credit cost (24+27+28+29)   40     (242,731)         (193,088)         (49,643)    
    Provision for general reserve for possible loan losses   41     (162,493)         (145,279)         (17,214)    
    Write-off of loans   42     (21,424)         (1,625)         (19,799)    
    Provision for specific reserve for possible loan losses   43     (44,551)         (36,834)         (7,717)    
    Losses on sales of delinquent loans   44     (14,030)         (9,096)         (4,934)    
    Provision for loan loss reserve for specific overseas countries   45     (253)         (253)         (0)    
    Recoveries of written-off claims   46     21          (1)         22     

Note: Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.

 

- 2 -


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Sumitomo Mitsui Financial Group

 

 2. Interest spread (domestic)

 

 SMBC non-consolidated           (%)
                           
            FY3/2021       Six months
ended
Sep. 30, 2020
  Six months
ended
Mar. 31, 2021
        FY3/2020    
Yield on interest earning assets (A)   0.77     0.73      0.81        0.83 
   

Interest earned on loans and bills discounted (C)

  0.84     0.83      0.84        0.91 
   

Interest earned on securities

  0.74     0.60      0.85        0.91 
Total cost of funding (including expenses) (B)   0.49     0.50      0.48        0.55 
   

Cost of interest bearing liabilities

  0.02     0.02      0.02        0.03 
     

Interest paid on deposits, etc. (D)

  0.00     0.00      0.00        0.00 
     

Interest paid on other liabilities

  0.13     0.15      0.11        0.19 
   

Expense ratio

  0.47     0.48      0.46        0.52 
Overall interest spread (A) - (B)   0.28     0.23      0.33        0.28 
   

Interest spread (C) - (D)

  0.84     0.83      0.84        0.91 
  Reference: After deducting loans to the Japanese government, etc.      
 

Interest earned on loans and bills discounted (E)

  0.86     0.86      0.86        0.93 
 

Interest spread (E) - (D)

  0.86     0.86      0.86        0.93 

 3. Gains (losses) on securities

 

SMBC non-consolidated       (Millions of yen)
        FY3/2021         FY3/2020
       

 

Change

 

Gains (losses) on bonds   79,983     5,780     74,203  
   

Gains on sales

  129,627     11,138     118,489  
   

Losses on sales

  (49,427)    (29,687)    (19,740) 
   

Gains on redemption

  0     0     0  
   

Losses on redemption

  (217)    24,328     (24,545) 
   

Losses on devaluation

  -     -     -  
 
Gains (losses) on stocks   63,532     11,668     51,864  
   

Gains on sales

  92,499     (59,939)    152,438  
   

Losses on sales

  (6,693)    21,903     (28,596) 
   

Losses on devaluation

  (22,273)    49,705     (71,978) 

 

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Sumitomo Mitsui Financial Group

 

 4. Unrealized gains (losses) on securities

 

 Consolidated                   (Millions of yen)
        Mar. 31, 2021   Mar. 31, 2020
     

Balance sheet 

amount 

   

Net unrealized gains (losses)

 

 

Balance sheet 

amount 

   

Net unrealized

gains (losses)

(b)

               
      (a)   (a) - (b)   Gains   Losses
                       
   

Held-to-maturity securities

  1     22,300        (60)     (200)     1      61      282,379        140   
                       
   

Other securities

  2     36,411,230        2,931,830      1,039,501      3,110,073      178,243      26,649,206        1,892,329   
                         
          

Stocks

  3     3,693,283        2,255,637      986,074      2,282,673      27,035      2,736,807        1,269,563   
                         
     

Bonds

  4     17,655,237        8,032      (13,485)     29,657      21,624      10,067,396        21,517   
                           
        Japanese government bonds   5     14,293,610        (14,074)     (6,946)     2,132      16,206      7,087,934        (7,128)  
                         
     

Others

  6     15,062,708        668,159      66,911      797,741      129,582      13,845,002        601,248   
                           
        Foreign bonds   7     12,110,092        1,342      (254,340)     122,199      120,856      11,649,523        255,682   
                       
   

Other money held in trust

  8     309        -      -      -      -      353        -   
                       
   

Total

  9     36,433,840        2,931,769      1,039,300      3,110,074      178,304      26,931,938        1,892,469   
                       
     

Stocks

  10     3,693,283        2,255,637      986,074      2,282,673      27,035      2,736,807        1,269,563   
                       
     

Bonds

  11     17,677,537        7,972      (13,685)     29,659      21,686      10,349,775        21,657   
                       
       

Others

  12     15,063,018          668,159      66,911      797,741      129,582      13,845,355          601,248   
 SMBC non-consolidated                   (Millions of yen)
        Mar. 31, 2021   Mar. 31, 2020
     

Balance sheet 

amount 

   

Net unrealized gains (losses)

 

 

Balance sheet 

amount 

   

Net unrealized

gains (losses)

(b)

               
      (a)   (a) - (b)   Gains   Losses
                       
   

Held-to-maturity securities

  13     22,300        (60)     6      1      61      22,300        (66)  
                       
   

Stocks of subsidiaries and affiliates

  14     4,239,133        (120,169)     6,671      761      120,930      4,182,047        (126,840)  
                       
   

Other securities

  15     33,009,866        2,393,102      936,951      2,562,302      169,199      23,541,406        1,456,151   
                         
     

Stocks

  16     3,509,647        2,174,744      964,002      2,200,430      25,685      2,576,557        1,210,742   
                         
     

Bonds

  17     17,571,190        7,915      (13,530)     29,531      21,615      9,978,420        21,445   
                           
        Japanese government bonds   18     14,288,609        (14,074)     (6,947)     2,132      16,206      7,083,933        (7,127)  
                         
     

Others

  19     11,929,029        210,442      (13,522)     332,341      121,898      10,986,427        223,964   
                           
        Foreign bonds   20     9,516,268        (40,681)     (224,034)     72,768      113,449      9,253,087        183,353   
                       
   

Total

  21     37,271,300        2,272,873      943,628      2,563,065      290,192      27,745,753        1,329,245   
                       
     

Stocks

  22     3,972,906        2,175,506      964,347      2,201,191      25,685      3,057,077        1,211,159   
                       
     

Bonds

  23     17,593,490        7,855      (13,523)     29,532      21,677      10,000,720        21,378   
                       
       

Others

  24     15,704,903          89,512      (7,195)     332,341      242,828      14,687,955          96,707   

 

Notes    1.   The figures above include negotiable certificates of deposit in “Cash and due from banks” and beneficiary claims on loan trust in “Monetary claims bought.”
   2.   “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30) and “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31) are applied from the fiscal year ending March 31, 2021.
     Due to the application, the net unrealized gains (losses) for the year ended March 31, 2021 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. Gains of 399 million yen and losses of 26,403 million yen were recognized in the statements of income for the year ended March 31, 2021 and for the year ended March 31, 2020, respectively.

 

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Sumitomo Mitsui Financial Group

 

 5. Balance of securities, classified by maturity

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

 

 SMBC non-consolidated

 

 

               

 

(Billions of yen)

 

          Mar. 31, 2021     Mar. 31, 2020
                           
         1 year
or less
    More than
1 year to
5 years
    More than
5 years to
10 years
    More than
10 years
    Total     1 year
or less
    More than
1 year to
5 years
    More than
5 years to
10 years
    More than
10 years
    Total
                     
Bonds     6,078.0        8,260.0        2,411.8        843.6        17,593.5        3,550.4        4,044.1        1,411.0        995.2      10,000.7 
    Japanese government  
bonds
    5,896.8        6,671.5        1,418.5        301.8        14,288.6        3,387.3        2,790.5        454.7        451.4      7,083.9 
    Japanese local
government bonds
    7.2        206.7        528.9        12.2        754.9        2.9        45.0        202.0        12.8      262.7 
    Japanese corporate
bonds
    174.1        1,381.9        464.4        529.6        2,550.0        160.2        1,208.6        754.3        531.1      2,654.1 
                     
Others     2,128.4        3,818.5        1,863.0        2,363.2        10,173.1        2,209.7        2,259.6        1,814.0        3,395.6      9,678.9 
                     
Total     8,206.4        12,078.5        4,274.8        3,206.8        27,766.6        5,760.1        6,303.7        3,225.0        4,390.8      19,679.6 
                                                                                                                                                                                                                                   

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

 

 SMBC non-consolidated

 

  

    (Billions of yen)

 

        Mar. 31, 2021   Mar. 31, 2020
                       
      1 year
or less
  More than
1 year to
5 years
  More than
5 years
  Total   1 year
or less
  More than
1 year to
5 years
  More than
5 years
  Total
    Receivable fixed rate
/ payable floating rate
  6,047.3    17,230.0    8,448.7    31,726.0    7,637.8    17,653.2    11,127.3    36,418.4 
    Receivable floating rate  
/ payable fixed rate
  959.1    4,338.3    6,305.1    11,602.5    1,074.1    5,445.7    8,028.4    14,548.1 
                 

Total

  7,006.3    21,568.3    14,753.8    43,328.5    8,711.9    23,098.9    19,155.7    50,966.5 
                                                                                                                                                                                         

 

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Sumitomo Mitsui Financial Group

 

 7. Employee retirement benefits

 Consolidated

 (1) Projected benefit obligation

 

(Millions of yen)
             Mar. 31, 2021         Mar. 31, 2020
       

 

Change

 

Fair value of plan assets   (A)   1,627,741     308,966     1,318,775 
Projected benefit obligation   (B)   1,097,541     (26,438)    1,123,979 
Net surplus (deficit)   (A-B)   530,200     335,405     194,795 
   

Net defined benefit asset

      565,534     334,961     230,573 
   

Net defined benefit liability

      35,334     (443)    35,777 
                    
Measurements of defined benefit plans (before tax effect deduction)   (185,025)    (313,110)    128,085 
   

Unrecognized prior service cost (deductible from the obligation)

  (21,653)    (21,494)    (159)
   

Unrecognized net actuarial gain (loss)

  (163,372)    (291,617)    128,245 

 

 (2) Retirement benefit expenses

 

(Millions of yen)
             FY3/2021          FY3/2020
       

 

Change

 

Retirement benefit expenses       18,237     (4,747)    22,984 

 

 SMBC non-consolidated

 

 (1) Projected benefit obligation
  (Millions of yen)
             Mar. 31, 2021          Mar. 31, 2020
       

 

Change

 

Projected benefit obligation   (A)   949,274     (35,825)    985,099 
                                      <Discount rate>     <0.42%>     <0.14%>     <0.28%> 
   

Fair value of plan assets

  (B)   1,504,648     299,342     1,205,306 
   

Reserve for employee retirement benefits

  (C)   -     -    
   

Prepaid pension cost

  (D)   366,298     21,817     344,481 
    Unrecognized prior service cost (deductible from the obligation)   (E)   (21,652)    (21,652)   
   

Unrecognized net actuarial gain (loss)

  (A-B-C+D-E)     (167,423)    (291,696)    124,273 

 

 (2) Retirement benefit expenses

 

  (Millions of yen)
              FY3/2021          FY3/2020
       

 

Change

 

Retirement benefit expenses       2,303     (1,944)    4,247 
   

Service cost

      23,147     (5,744)    28,891 
   

Interest cost on projected benefit obligation

      3,011     250     2,761 
   

Expected returns on plan assets

      (37,022)    2,922     (39,944)
   

Amortization of unrecognized prior service cost

      (2,209)    (2,209)   
   

Amortization of unrecognized net actuarial gain (loss)

      8,552     4,777     3,775 
   

Others

      6,824     (1,940)    8,764 

 

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Sumitomo Mitsui Financial Group

 

8. Classification based on self-assessment and the Financial Reconstruction Act,

      and write-offs / reserves

 

 

*1   Includes direct reduction of 115.3 billion yen.
*2  

Includes reserve for assets that are not subject to disclosure based on the Financial Reconstruction Act standards.

(Bankrupt/Effectively bankrupt borrowers: 3.6 billion yen, Potentially bankrupt borrowers: 2.5 billion yen)

*3   Reserve ratios for claims on Bankrupt borrowers, Effectively bankrupt borrowers, Potentially bankrupt borrowers, Substandard borrowers and Borrowers requiring caution including Substandard borrowers are the proportion of the reserve for possible loan losses to each category’s total claims, excluding the portion secured by collateral or guarantees, etc.
*4   Reserve ratios for claims on Normal borrowers and Borrowers requiring caution (excluding claims to Substandard borrowers) are the proportion of the reserve for possible loan losses to the respective claims of each category.
  The reserve ratio for unsecured claims on Borrowers requiring caution (excluding claims to Substandard borrowers) is shown in [     ].
*5   Includes Specific reserve for Borrowers requiring caution totaling 0.2 billion yen.
*6   The proportion of the reserve to the claims, excluding the portion secured by collateral or guarantees, etc.

 

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Sumitomo Mitsui Financial Group

 

 9. Risk-monitored loans

 

 Consolidated         (Millions of yen, %)
        Mar. 31, 2021       Mar. 31, 2020
       
      (a)       Ratio    
(b)
  (a) - (c)   (c)   Ratio
(d)
Bankrupt loans   69,452     0.1     55,474     13,978     0.0  
Non-accrual loans   422,551     0.5     44,378     378,173     0.5  
Past due loans (3 months or more)   16,784     0.0     2,384     14,400     0.0  
Restructured loans   430,080     0.5     208,792     221,288     0.3  
Total   938,868     1.1     311,028     627,840     0.8  
                        
Total loans (period-end balance)   85,132,738     100.0     2,615,129     82,517,609     100.0  
             
  Amount of direct reduction   125,304          12,050     113,254       
 SMBC non-consolidated         (Millions of yen, %)
        Mar. 31, 2021       Mar. 31, 2020
       
      (a)   Ratio
(b)
  (a) - (c)   (c)   Ratio
(d)
Bankrupt loans   68,769     0.1     55,791     12,978     0.0  
Non-accrual loans   333,421     0.4     27,834     305,587     0.4  
Past due loans (3 months or more)   6,460     0.0     1,992     4,468     0.0  
Restructured loans   202,301     0.2     111,963     90,338     0.1  
Total   610,952     0.7     197,580     413,372     0.5  
                        
Total loans (period-end balance)   81,937,725     100.0     1,750,343     80,187,382     100.0  
             
  Amount of direct reduction   92,023          13,959     78,064       
 10. Reserve for possible loan losses and reserve ratio      
 Consolidated         (Millions of yen, %)
        Mar. 31, 2021       Mar. 31, 2020
       
      (a)  

Reserve Ratio  

(b)

  (a) - (c)   (c)  

Reserve Ratio

(d)

Reserve for possible loan losses   659,017     70.19     179,820     479,197     76.32  
   

General reserve

  499,815         163,726     336,089      
   

Specific reserve

  158,947         15,840     143,107      
    Loan loss reserve for specific overseas countries   254         254     0      
             
  Amount of direct reduction   163,185       20,351     142,834       

 

 SMBC non-consolidated         (Millions of yen, %)
        Mar. 31, 2021       Mar. 31, 2020
       
      (a)  

Reserve Ratio  

(b)

  (a) - (c)   (c)  

Reserve Ratio

(d)

Reserve for possible loan losses   456,405     74.70     176,703     279,702     67.66  
   

General reserve

  351,065         162,493     188,572      
   

Specific reserve

  105,084         13,956     91,128      
    Loan loss reserve for specific overseas countries   254         254     0      
             
  Amount of direct reduction   115,282       19,872     95,410    

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

 

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Sumitomo Mitsui Financial Group

 

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

 

Consolidated       (Millions of yen, %)
        Mar. 31, 2021
(a)
      Mar. 31, 2020
(b)
        (a) - (b)
   

Bankrupt and quasi-bankrupt assets

  128,112      40,255      87,857 
   

Doubtful assets

  392,161      65,278      326,883 
   

Substandard loans

  446,246      210,707      235,539 
Total (A)   966,520      316,240      650,280 
             
   

Normal assets

  98,159,165      2,885,970      95,273,195 
   

Grand total (B)

  99,125,686      3,202,210      95,923,476 
NPL ratio (A/B)   0.98      0.30      0.68 
        (Millions of yen)
        Mar. 31, 2021
(a)
      Mar. 31, 2020
(b)
        (a) - (b)

Total coverage (C)

  640,380      173,895      466,485 
   

Reserve for possible loan losses (D)

  212,588      59,586      153,002 
   

Amount recoverable by guarantees, collateral and others (E)

  427,791      114,308      313,483 
         
        (%)
Coverage ratio (C) / (A)   66.26      (5.48)     71.74 

Coverage ratio calculated with total reserve for possible loan losses

included in the numerator

  112.45      (9.45)     121.90 
        (%)
Reserve ratio to unsecured assets (D) / (A - E)   39.46      (5.97)     45.43 

Reserve ratio calculated with total reserve for possible loan losses

included in the numerator

  122.33      (19.95)     142.28 
SMBC non-consolidated       (Millions of yen, %)
        Mar. 31, 2021
(a)
      Mar. 31, 2020
(b)
        (a) - (b)
   

Bankrupt and quasi-bankrupt assets

  112,697      39,721      72,976 
   

Doubtful assets

  306,336      45,503      260,833 
   

Substandard loans

  208,761      113,954      94,807 

Total (A)

  627,795      199,178      428,617 
           
   

Normal assets

  95,426,746      2,629,356      92,797,390 
   

Grand total (B)

  96,054,542      2,828,535      93,226,007 

NPL ratio (A/B)

  0.65      0.19      0.46 
Note: NPLs based on the Financial Reconstruction Act include loans, acceptances and guarantees, suspense payments, and other credit-type assets.
    (Millions of yen)
        Mar. 31, 2021
(a)
      Mar. 31, 2020
(b)
        (a) - (b)
Total coverage (C)   512,960      140,075      372,885 
   

Reserve for possible loan losses* (D)

  157,991      45,787      112,204 
   

Amount recoverable by guarantees, collateral and others (E)

  354,969      94,288      260,681 
* Sum of general reserve for substandard loans and specific reserve
        (%)
Coverage ratio (C) / (A)   81.71      (5.29)     87.00 

Coverage ratio calculated with total reserve for possible loan losses

included in the numerator

  129.24      3.16      126.08 
        (%)
Reserve ratio to unsecured assets (D) / (A - E)   57.91      (8.90)     66.81 

Reserve ratio calculated with total reserve for possible loan losses

included in the numerator

  167.29      0.74      166.55 

 

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Sumitomo Mitsui Financial Group

 

12. Results of off-balancing of NPLs

SMBC non-consolidated

(Billions of yen)

                                                                                                                                                                       
       

  Mar. 31, 2021  

(a)

             

Mar. 31, 2020

(b)

                 
                   

 

      (a) - (b)      

 

NPLs

newly classified 

during

FY3/2021

 

Amount of

  off-balancing  

             

    

 

 

Bankrupt and quasi-bankrupt assets

 

 

      112.7    39.7    66.6    (26.9)    73.0 
             
   

 

Doubtful assets

 

 

      306.3    45.5    186.7    (141.2)    260.8 
           
   

 

Total

 

              419.0    85.2    (*1)    253.3    (*1)    (168.0)    333.8 
               
Result of measures connected to off-balancing (*2)   96.5          38.5 
                
       

  Breakdown of  

off-balancing

by factor (*3)

 

 

 

   

 

Disposition by borrowers’ liquidation

 

 

 

(2.2) 

 

 
       

 

Reconstructive disposition

 

 

 

(1.1) 

 

 
        Improvement in debtors’ performance due to reconstructive disposition  

—   

 
       

 

Loan sales to market

 

 

 

(45.1) 

 

 
       

 

Direct write-offs

 

 

 

(3.4) 

 

 
       

 

Others

 

 

 

(116.2) 

 

 
         

 

Collection / repayment, etc.

 

 

(93.0) 

 

 
          Improvement in debtors’ performance   (23.2)   
                   
       

 

Total

 

 

 

(168.0) 

 

 

 

*1

   The amount of NPLs newly classified during the six months ended Sep. 30, 2020 and off-balanced in the six months ended Mar. 31, 2021 was 29.8 billion yen.

*2

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

*3

   1.    “Disposition by borrowers’ liquidation” refers to abandonment or write-off of loans involved in bankruptcy liquidation proceedings (bankruptcy or special liquidations).
   2.    “Reconstructive disposition” refers to abandonment of loans involved in reconstructive bankruptcy proceedings (corporate reorganization and civil rehabilitation), debt forgiveness involved in special mediation or other types of civil mediation, or debt forgiveness for restructuring involved in private reorganization.

 

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Sumitomo Mitsui Financial Group

 

13. Loan portfolio, classified by industry

SMBC non-consolidated

 

(1) Loans and bills discounted, classified by industry    (Millions of yen, %)
               

Mar. 31, 2021  

 

           

Mar. 31, 2020  

 

    
            (a)        Ratio        (a) - (b)     (b)      Ratio

Domestic offices

(excluding Japan offshore banking accounts)

  56,909,430       100.0       2,296,102      54,613,328       100.0   
    Manufacturing   8,523,121       15.0       1,330,035      7,193,086       13.2   
    Agriculture, forestry, fisheries and mining   262,451       0.5       4,960      257,491       0.5   
    Construction   735,840       1.3       (17,376)     753,216       1.4   
    Transportation, communications and public enterprises   5,297,336       9.3       169,155      5,128,181       9.4   
    Wholesale and retail   5,061,401       8.9       676,103      4,385,298       8.0   
    Finance and insurance   6,613,461       11.6       (516,815)     7,130,276       13.1   
    Real estate   8,026,779       14.1       405,664      7,621,115       13.9   
    Goods rental and leasing   2,302,189       4.0       721,480      1,580,709       2.9   
    Various services   4,795,440       8.4       516,319      4,279,121       7.8   
    Municipalities   546,849       1.0       (237,424)     784,273       1.4   
    Others   14,744,557       25.9       (756,000)     15,500,557       28.4   
Overseas offices and Japan offshore banking accounts   25,028,295       100.0       (545,759)     25,574,054       100.0   
    Public sector   132,216       0.5       (42,081)     174,297       0.7   
    Financial institutions   1,997,239       8.0       67,675      1,929,564       7.5   
    Commerce and industry   20,938,451       83.7       (547,224)     21,485,675       84.0   
    Others   1,960,387       7.8       (24,130)     1,984,517       7.8   

Total

          81,937,725       -       1,750,343      80,187,382       -   
  Risk-monitored loans           (Millions of yen, %)
             

Mar. 31, 2021  

 

           

Mar. 31, 2020  

 

    
      (a)        Ratio        (a) - (b)       (b)      Ratio
  Domestic offices
(excluding Japan offshore banking accounts)
  380,614       100.0       79,406      301,208       100.0   
      Manufacturing   62,502       16.4       16,801      45,701       15.2   
      Agriculture, forestry, fisheries and mining   1,739       0.5       107      1,632       0.5   
      Construction   8,066       2.1       (1,896)     9,962       3.3   
      Transportation, communications and public enterprises   22,646       6.0       (16,662)     39,308       13.1   
      Wholesale and retail   70,405       18.5       5,168      65,237       21.7   
      Finance and insurance   6,547       1.7       1,289      5,258       1.7   
      Real estate   38,936       10.2       5,641      33,295       11.1   
      Goods rental and leasing   849       0.2       548      301       0.1   
      Various services   124,679       32.8       69,801      54,878       18.2   
      Municipalities   -       -       -      -       -   
        Others   44,239       11.6       (1,392)     45,631       15.1   
  Overseas offices and Japan offshore banking accounts   230,337       100.0       118,173      112,164       100.0   
      Public sector   -       -       -      -       -   
      Financial institutions   -       -       -      -       -   
      Commerce and industry   207,274       90.0       149,330      57,944       51.7   
          Others   23,062       10.0       (31,158)     54,220       48.3   
 

Total

  610,952       -       197,580      413,372       -   

 

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Sumitomo Mitsui Financial Group

 

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

 

          (Millions of yen, %)
          Mar. 31, 2021             Mar. 31, 2020
     

 

(a)

 

    Reserve   ratio  

 

     (a) - (b)     

 

 

 

(b)

 

Domestic offices
(excluding Japan offshore banking accounts)

  390,325     65.0     82,852      307,473  
   

Manufacturing

  66,150     72.1     18,073      48,077  

 

 

Agriculture, forestry, fisheries and mining

  3,720     59.2     1,387      2,333  
   

Construction

  8,245     56.4     (1,940)     10,185  
   

Transportation, communications and public enterprises

  23,297     76.4     (16,169)     39,466  
   

Wholesale and retail

  71,373     64.6     5,461      65,912  
   

Finance and insurance

  6,640     62.3     1,268      5,372  
   

Real estate

  40,501     62.6     5,757      34,744  
   

Goods rental and leasing

  849     59.2     548      301  
   

Various services

  125,182     51.8     69,931      55,251  
   

Municipalities

  -     -     -      -  
   

Others

  44,362     100.0     (1,466)     45,828  

Overseas offices and Japan offshore banking accounts

  237,470     50.1     116,326      121,144  
   

Public sector

  -     -     -      -  
   

Financial institutions

  -     -     -      -  
   

Commerce and industry

  214,092     50.4     147,954      66,138  
   

Others

  23,378     42.6     (31,627)     55,005  

 

Total

 

 

 

627,795  

 

 

 

57.9  

 

 

 

199,178   

 

 

 

428,617  

 

Notes     1.   NPLs based on the Financial Reconstruction Act include loans, acceptances and guarantees, suspense payments,
and other credit-type assets.
    2.  

Reserve ratio

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

 

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

(3) Consumer loans outstanding

 

          (Millions of yen)
                Mar. 31, 2021                                             Mar. 31, 2020    
       

 

    (a)    

 

 

 

    (a) - (b)    

 

 

 

    (b)    

 

Consumer loans               12,002,500                   (424,501)                   12,427,001  

    

 

Housing loans

  11,239,293     (344,537)     11,583,830  

 

   

Self-residential purpose

  9,081,691     (185,787)     9,267,478  

 

 

Other consumer loans

  763,207     (79,964)     843,171  

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

 

      (Millions of yen, %)
        Mar. 31, 2021                                             Mar. 31, 2020    
   

 

    (a)    

 

 

 

    (a) - (b)    

 

 

 

    (b)    

 

Outstanding balance               33,528,406                    433,373                    33,095,033  
Ratio to total loans    58.9     (1.7)     60.6  

Note:  Outstanding balance includes loans to individuals.

 

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Sumitomo Mitsui Financial Group

 

14. Loan portfolio, classified by country

SMBC non-consolidated

(1) Loans outstanding, classified by major domicile

(Millions of yen, %)

         

 

Mar. 31, 2021  

 

 

 

               

 

Mar. 31, 2020 

 

 

 

   
       

 

(a)

 

 

 

 

 

    Ratio    

 

   

 

(a) - (b) 

 

 

 

   

 

(b)

 

 

 

 

 

    Ratio    

 

Asia                 7,104,536      29.2                  352,697                     6,751,839      26.9 
       Indonesia     316,263      1.3      (13,657)        329,920      1.3 
    Thailand     817,780      3.4      100         817,680      3.2 
    Korea     302,624      1.2      20,872         281,752      1.1 
    Hong Kong     1,886,776      7.8      164,317         1,722,459      6.9 
    China     256,567      1.1      (54,443)        311,010      1.2 
    Taiwan     518,927      2.1      49,316         469,611      1.9 
    Singapore     1,629,658      6.7      109,190         1,520,468      6.1 
    India     618,613      2.5      39,963         578,650      2.3 
    Others     757,328      3.1      37,039         720,289      2.9 
Oceania     1,924,056      7.9      102,234         1,821,822      7.3 
    Australia     1,821,988      7.5      118,957         1,703,031      6.8 
    Others     102,068      0.4      (16,723)        118,791      0.5 
North America     7,791,070      32.0      (1,378,313)        9,169,383      36.5 
    United States     6,125,010      25.2      (1,391,341)        7,516,351      29.9 
    Others       1,666,060      6.8             13,028         1,653,032      6.6 
Central and South America     1,477,151      6.1      (186,227)        1,663,378      6.6 
    Brazil     260,764      1.1      2,306         258,458      1.0 
    Panama     401,813      1.7      (17,961)        419,774      1.7 
    Others     814,574      3.3      (170,572)        985,146      3.9 
Western Europe     3,894,594      16.0      205,203         3,689,391      14.7 
    United Kingdom     1,257,442      5.2      229,438         1,028,004      4.1 
    Ireland     421,270      1.7      108,635         312,635      1.2 
    Netherlands     682,160      2.8      (32,290)        714,450      2.9 
    Others     1,533,722      6.3      (100,580)        1,634,302      6.5 
Eastern Europe     181,446      0.7      (39,651)        221,097      0.9 
    Russia     125,272      0.5      12,276         112,996      0.5 
    Others     56,174      0.2      (51,927)        108,101      0.4 
Others     1,966,064      8.1      190,861         1,775,203      7.1 
                                     
Total     24,338,917      100.0      (753,196)        25,092,113      100.0 
                                                                                                                                                                                                         

Note:     Classified by domicile of debtors.

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

(Millions of yen, %)

            Mar. 31, 2021                           Mar. 31, 2020    
        (a)      

Reserve 

Ratio

 

 

    (a) - (b)       (b)  

Overseas Offices and

Japan offshore banking accounts

    237,470        50.1        116,326         121,144   

    

 

Asia

    60,806        45.2        30,923         29,883   
   

Oceania

    1,126        25.3        242         884   
   

North America

    88,672        47.9        36,839         51,833   
   

Central and South America

    45,094        76.6        32,494         12,600   
   

Western Europe

    25,205        53.8        11,162         14,043   
   

Eastern Europe

                        -                              (853)                        853   
   

Others

    16,565        36.0        5,520         11,045   
                                                                                                                                               
Notes      1.      NPLs based on the Financial Reconstruction Act include loans, acceptances and guarantees, suspense payments,
and other credit-type assets.
     2.      Reserve ratio
      = (Reserve for possible loan losses)/(Assets excluding amounts recoverable due to gurarantees, collateral and others) X 100
Reserve for possible loan losses is sum of general reserve for substandard loans and specific reserve.
     3.      Classified by domicile of debtors.

 

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Sumitomo Mitsui Financial Group

 

15. Balance of deposits and loans

SMBC non-consolidated

(1) Average balance of deposits and loans

          (Millions of yen)
           

 

FY3/2021

(a)

 

     

 

FY3/2020

(b)

 

       

 

(a) - (b)

 

       

Deposits

 

  129,978,122     14,261,780     115,716,342  
         

  

 

Domestic units

 

  104,819,023     10,489,495     94,329,528  

 

       

Loans

 

  83,424,385     6,968,781     76,455,604  
         
   

Domestic units

 

  53,771,421     4,571,390     49,200,031  

Note: Deposits do not include negotiable certificates of deposit.

 

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

 

          (Millions of yen)
              

 

Mar. 31, 2021

 

     

 

Mar. 31, 2020

         

(a)

 

 

 

(a) - (b)

 

 

(b)

 

       

Deposits

 

  134,685,582     14,712,258      119,973,324  

  

  Domestic deposits
(excluding Japan offshore banking accounts)
  112,672,262     10,488,265      102,183,997  
           
     

Individuals

 

  53,411,606     4,358,636      49,052,970  
           
       

Corporates

 

  59,260,656     6,129,629      53,131,027  

 

       

Loans

 

  81,937,725     1,750,343      80,187,382  
    Domestic offices
(excluding Japan offshore banking accounts)
  56,909,430     2,296,102      54,613,328  
         
    Overseas offices and Japan offshore banking accounts   25,028,295     (545,759)     25,574,054  

Note: Deposits do not include negotiable certificates of deposit.

 

Reference:

 

          (Billions of yen)
            Mar. 31, 2021
     

Mar. 31, 2020

(b)

 

  

      (a)  

(a) - (b)

 

       

Balance of investment trusts

 

  2,619.1     646.0      1,973.1  
         

  

 

Balance to individuals

 

  2,102.2     508.8      1,593.4  

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

 

          (Billions of yen)
    FY3/2021      

FY3/2020

(b)

    (a)  

(a) - (b)

 

Sales of investment trusts to individuals

 

  704.4     303.6      400.8  
         
Sales of pension-type insurance to individuals   42.1     (75.1)     117.2  

 

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Sumitomo Mitsui Financial Group

 

   16. Deferred tax assets and liabilities

 

(Billions of yen)
                   

  SMBC non-consolidated

 

     

  Mar. 31, 2021  

 

 

 

Change from  

Mar. 31, 2020  

 

 

  Mar. 31, 2020  

 

 

(a)

 

 

Total deferred tax assets

 

 

 

(b-c)  

 

 

 

    1     

 

 

 

247.5   

 

 

 

67.7   

 

 

 

179.8   

 

   

 

(b)

 

 

Subtotal of deferred tax assets

 

     

 

    2     

 

 

 

497.0   

 

 

 

37.4   

 

 

 

459.6   

 

     

 

Reserve for possible loan losses and

write-off of loans

 

     

 

 

 

 

177.6   

 

 

 

60.2   

 

 

 

117.4   

 

     

 

Taxable write-off of securities

 

     

 

 

 

209.0   

 

 

 

(15.9)  

 

 

 

224.9   

 

     

 

Others

 

     

 

 

 

110.4   

 

 

 

(6.9)  

 

 

 

117.3   

 

   

 

(c) Valuation allowance

 

   

 

 

 

249.5   

 

 

 

(30.3)  

 

 

 

279.8   

 

 

(d) Total deferred tax liabilities

 

     

 

 

 

735.5   

 

 

 

225.0   

 

 

 

510.5   

 

   

 

Net unrealized gains on other securities

 

     

 

 

 

667.6   

 

 

 

258.9   

 

 

 

408.7   

 

   

 

Others

 

     

 

 

 

67.9   

 

 

 

(33.9)  

 

 

 

101.8   

 

                           

 

Net deferred tax assets

 

 

 

(a-d)  

 

 

 

10 

 

 

 

(488.0)  

 

 

 

(157.3)  

 

 

 

(330.7)  

 

   

 

Amount corresponding to net deferred losses on

hedges included in line 5 and net unrealized

gains on other securities included in line 8

     

 

11 

 

 

 

(686.2)  

 

 

 

(223.3)  

 

 

 

(462.9)  

 

   

 

Others

 

     

 

12 

 

 

 

198.2   

 

 

 

66.0   

 

 

 

132.2   

 

 

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

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

 

        

(Billions of yen)

 

     
       
     

 FY3/2019    

 

  

FY3/2020   

 

  

FY3/2021  

 

         

Income of final tax return

before deducting operating loss carryforwards

   497.2      540.5      552.7        
Note: The figure for FY3/2021 was estimated at fiscal year closing.

 

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Sumitomo Mitsui Financial Group

 

 17. Capital ratio (BIS guidelines)

  (Basel III basis)

 

 Consolidated       (Billions of yen, %)
     Mar. 31, 2021 [Preliminary]         Mar. 31, 2020
     (a)    (a) - (b)    (b)
       
(1) Total capital ratio (4) / (7)    18.61     (0.14)     18.75 
       
(2) Tier 1 capital ratio (5) / (7)    16.96     0.33      16.63 
       
(3) Common equity Tier 1 capital ratio (6) / (7)    16.00     0.45      15.55 
       
(4) Total capital    12,289.3     737.3      11,552.0 
       
(5) Tier 1 capital    11,199.3     949.4      10,249.9 
       
(6) Common equity Tier 1 capital    10,562.8     981.5      9,581.3 
       
(7) Risk weighted assets    66,008.0     4,408.9      61,599.1 
       
(8) Required capital (7) X 8%    5,280.6     352.7      4,927.9 
       
(9) Leverage Ratio    5.65     1.34      4.31 
 SMBC consolidated         
       
(1) Total capital ratio    17.72     (0.34)     18.06 
       
(2) Tier 1 capital ratio    15.89     0.09      15.80 
       
(3) Common equity Tier 1 capital ratio    13.98     0.28      13.70 
       
(4) Leverage Ratio    5.21     1.24      3.97 
 SMBC non-consolidated         
       
(1) Total capital ratio    16.96     (0.65)     17.61 
       
(2) Tier 1 capital ratio    15.08     (0.15)     15.23 
       
(3) Common equity Tier 1 capital ratio    13.09     0.08      13.01 
       
(4) Leverage Ratio    5.05     1.20      3.85 

 18. ROE

 

        
Consolidated          (%)
    

 

FY3/2021

 

       

 

FY3/2020

 

     (a)    (a) - (b)    (b)
       
ROE (denominator: Total stockholders’ equity)    5.4     (2.2)     7.6 

  Note:

 

ROE (denominator: Total stockholders’ equity)  

=

  

Profit attributable to owners of parent

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

 

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Sumitomo Mitsui Financial Group

 

 19. Earnings targets and dividends forecast for FY3/2022

 

 (1) Earnings targets

 

 Consolidated

    (Billions of yen)  
    

 

FY3/2022

 

 

 

FY3/2021
Result

 

   

Consolidated net business profit

  1,120.0     1,084.0    

Total credit cost

  (300.0)    (360.5)   

Ordinary profit

  880.0     711.0    

Profit attributable to owners of parent

  600.0     512.8    

 SMBC non-consolidated

  (Billions of yen)  
    

 

FY3/2022

 

 

 

FY3/2021
Result

 

   
Banking profit (before provision for
general reserve for possible loan losses)
  615.0     665.2    

Total credit cost

  (170.0)    (242.7)   

Ordinary profit

  530.0     436.1    

Net income

  370.0     338.0    

 (2) Dividends forecast

 

      (Yen)
    

 

FY3/2022

 

 

 

FY3/2021

     Interim   Annual     

Dividend per share for common stock

  100    200    190 

 

 Reference:

      (Billions of yen)
    

 

FY3/2022

 

 

 

FY3/2021

     Interim   Annual     

Total dividend

  137.0    274.1    260.4 

 

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Sumitomo Mitsui Financial Group

 

Reference: Financial Statements of SMBC

1. Condensed balance sheet

 

 SMBC non-consolidated

(Millions of yen)

      Mar. 31, 2021
             Mar. 31, 2020
 
      (a)      (a) - (b)          (b)      
       

Assets

              
       

Cash and due from banks

                   68,872,236                    10,900,943                      57,971,293  
       

Call loans

     2,483,453        1,837,486        645,967  
       

Receivables under resale agreements

     2,564,708        (3,398,669      5,963,377  
       

Receivables under securities borrowing transactions

     1,587,813        643,873        943,940  
       

Monetary claims bought

     1,765,424        203,341        1,562,083  
       

Trading assets

     2,448,415        (741,565      3,189,980  
       

Securities

     36,487,225        9,428,592        27,058,633  
       

Loans and bills discounted

     81,937,725        1,750,343        80,187,382  
       

Foreign exchanges

     2,048,571        152,414        1,896,157  
       

Other assets

     4,291,338        113,075        4,178,263  
       

Tangible fixed assets

     780,803        (14,154      794,957  
       

Intangible fixed assets

     258,523        23,816        234,707  
       

Prepaid pension cost

     366,298        21,817        344,481  
       

Customers’ liabilities for acceptances and guarantees

     10,526,389        1,126,865        9,399,524  
       

Reserve for possible loan losses

     (456,405      (176,703      (279,702
       

Reserve for possible losses on investments

    

 

(115,791

 

 

    

 

11,465

 

 

 

    

 

(127,256

 

 

       

Total assets

    

 

  215,846,732

 

 

 

    

 

    21,882,941

 

 

 

    

 

  193,963,791

 

 

 

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

 

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Table of Contents

Sumitomo Mitsui Financial Group

 

(Millions of yen)

     

 

Mar. 31, 2021

 

             Mar. 31, 2020
 
     

(a)

 

    

 

(a) - (b)

 

    

(b)

 

 
       

Liabilities

              
       

Deposits

                 134,685,582                    14,712,258                    119,973,324  
       

Negotiable certificates of deposit

     12,703,900        2,123,639        10,580,261  
       

Call money

     671,522        (2,397,204      3,068,726  
       

Payables under repurchase agreements

     11,879,494        3,150,972        8,728,522  
       

Payables under securities lending transactions

     551,377        (19,718      571,095  
       

Commercial paper

     978,109        335,662        642,447  
       

Trading liabilities

     2,348,232        (611,381      2,959,613  
       

Borrowed money

     24,825,882        3,264,705        21,561,177  
       

Foreign exchanges

     1,193,427        (326,350      1,519,777  
       

Bonds

     1,084,913        (809,456      1,894,369  
       

Due to trust account

     2,218,601        482,712        1,735,889  
       

Other liabilities

     3,571,515        118,507        3,453,008  
       

Reserve for employee bonuses

     13,345        (449      13,794  
       

Reserve for executive bonuses

     1,154        215        939  
       

Reserve for point service program

     603        215        388  
       

Reserve for reimbursement of deposits

     9,245        5,345        3,900  
       

Deferred tax liabilities

     487,964        157,265        330,699  
       

Deferred tax liabilities for land revaluation

     29,603        (508      30,111  
       

Acceptances and guarantees

 

    

 

10,526,389

 

 

 

    

 

1,126,865

 

 

 

    

 

9,399,524

 

 

 

       

Total liabilities

 

    

 

207,780,865

 

 

 

    

 

21,313,293

 

 

 

    

 

186,467,572

 

 

 

       

Net assets

              
       

Capital stock

     1,770,996        -        1,770,996  
       

Capital surplus

     1,774,554        -        1,774,554  
       

    Capital reserve

     1,771,043        -        1,771,043  
       

    Other capital surplus

     3,510        -        3,510  
       

Retained earnings

     2,910,394        34,647        2,875,747  
       

    Other retained earnings

     2,910,394        34,647        2,875,747  
       

        Voluntary reserve for retirement allowances

     1,656        -        1,656  
       

        Voluntary reserve

     219,845        -        219,845  
       

        Retained earnings brought forward

     2,688,892        34,646        2,654,246  
       

Treasury stock

     (210,003      -        (210,003
       

Total stockholders’ equity

     6,245,942        34,647        6,211,295  
       

Net unrealized gains (losses) on other securities

     1,719,291        645,496        1,073,795  
       

Net deferred gains (losses) on hedges

     75,141        (110,022      185,163  
       

Land revaluation excess

     25,492        (472      25,964  
       

Total valuation and translation adjustments

 

    

 

1,819,924

 

 

 

    

 

535,001

 

 

 

    

 

1,284,923

 

 

 

       

Total net assets

 

    

 

8,065,866

 

 

 

    

 

569,647

 

 

 

    

 

7,496,219

 

 

 

       

Total liabilities and net assets

 

    

 

215,846,732

 

 

 

    

 

21,882,941

 

 

 

    

 

193,963,791

 

 

 

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

 

 

- 19 -


Table of Contents

Sumitomo Mitsui Financial Group

 

2. Condensed income statement

 

SMBC non-consolidated         
   (Millions of yen)
      
FY3/2021
(a)

 
             
FY3/2020
(b)

 
       (a) - (b)  

 

Ordinary income

 

  

 

 

 

 

                2,283,356 

 

 

 

 

  

 

 

 

 

               (567,806)

 

 

 

 

  

 

 

 

 

                 2,851,162

 

 

 

 

       
    Interest income      1,369,776         (530,331)        1,900,107  
     
        Interest on loans and discounts      958,835         (295,297)        1,254,132  
     
        Interest and dividends on securities      291,358         (37,794)        329,152  
     
    Trust fees      2,076         (34)        2,110  
     
    Fees and commissions      532,550         11,100         521,450  
     
    Trading income      17,235         (94,420)        111,655  
     
    Other operating income      248,584         105,730         142,854  
     

    Other income

 

    

 

113,133 

 

 

 

    

 

(59,850)

 

 

 

    

 

172,983

 

 

 

 

Ordinary expenses

 

  

 

 

 

 

1,847,294 

 

 

 

 

  

 

 

 

 

(519,924)

 

 

 

 

  

 

 

 

 

2,367,218

 

 

 

 

       
    Interest expenses      433,414         (588,601)        1,022,015  
     
        Interest on deposits      91,518         (256,218)        347,736  
     
    Fees and commissions payments      201,865         3,673         198,192  
     
    Trading losses      450         450         -  
     
    Other operating expenses      52,829         6,867         45,962  
     
    General and administrative expenses      828,186         8,763         819,423  
     

    Other expenses

 

    

 

330,546 

 

 

 

    

 

48,922 

 

 

 

    

 

281,624

 

 

 

       

Ordinary profit

 

    

 

436,062 

 

 

 

    

 

(47,882)

 

 

 

    

 

483,944

 

 

 

       
Extraordinary gains      8,987         7,763         1,224  
     

Extraordinary losses

 

    

 

9,654 

 

 

 

    

 

5,463 

 

 

 

    

 

4,191

 

 

 

       

Income before income taxes

 

    

 

435,394 

 

 

 

    

 

(45,583)

 

 

 

    

 

480,977

 

 

 

       
Income taxes - current      156,024         (258)        156,282  
     

Income taxes - deferred

 

    

 

(58,666)

 

 

 

    

 

(65,979)

 

 

 

    

 

7,313

 

 

 

       

Total income taxes

 

    

 

97,358 

 

 

 

    

 

(66,237)

 

 

 

    

 

163,595

 

 

 

       

Net income

 

    

 

338,036 

 

 

 

    

 

20,655 

 

 

 

    

 

317,381

 

 

 

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

 

- 20 -


Table of Contents

Sumitomo Mitsui Financial Group

 

3. Statement of changes in net assets

SMBC non-consolidated

 

Year ended March 31, 2021                                                 (Millions of yen)
              Capital surplus     Retained earnings               
                         Other retained earnings              
     

 

Capital
stock

    

 

Capital
reserve

   

 

Other capital
surplus

    Voluntary
reserve for
retirement
  allowances  
       Voluntary  
reserve
        Retained    
earnings
brought
forward
   

  Treasury  

stock

    

Total
stockholders’

equity

Balance

at the beginning of the period

     1,770,996        1,771,043           3,510          1,656          219,845       2,654,246       (210,003    6,211,295   

Cumulative effects of changes in accounting policies

                                               (30,910            (30,910)  
                 

Restated balance

 

    

 

1,770,996

 

 

 

    

 

1,771,043

 

 

 

   

 

3,510

 

 

 

   

 

1,656

 

 

 

    

 

219,845

 

 

 

   

 

2,623,335

 

 

 

   

 

(210,003

 

 

  

6,180,384   

 

                 

Changes in the period

 

                                                               
                 

Cash dividends

 

                                              

 

(272,952

 

 

          

(272,952)  

 

                 

Net income

 

                                              

 

338,036

 

 

 

          

338,036   

 

Reversal of land revaluation

excess