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 August 2019
Commission file number 001-34919
SUMITOMO MITSUI FINANCIAL GROUP, INC.
(Translation of registrants 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 ☒ or 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NO. 333-228913) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
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/ Toru Nakashima |
|
Name: Toru Nakashima | ||
Title: Senior Managing Executive Officer Group Chief Financial Officer |
Date: August 20, 2019
UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS
AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2019
On August 14, 2019, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2019 prepared in accordance with accounting principles generally accepted in Japan, or Japanese GAAP, as part of our quarterly securities report ( shihanki hokokusho ) for the same period filed by us with the relevant Japanese authorities. This document is an English translation of the unaudited quarterly consolidated financial statements and the notes thereto included in such quarterly securities report. Japanese GAAP differs in certain respects from International Financial Reporting Standards as issued by the International Accounting Standards Board, or IFRS, and generally accepted accounting principles in the United States. For a description of certain differences between IFRS and Japanese GAAP, see Item 5.A Operating ResultsReconciliation with Japanese GAAP in our most recent annual report on Form 20-F filed with the SEC.
UNAUDITED QUARTERLY
CONSOLIDATED FINANCIAL STATEMENTS (JAPANESE GAAP)
QUARTERLY CONSOLIDATED BALANCE SHEETS
Millions of yen |
Millions of
U.S. dollars |
|||||||||||||||||||
March 31, 2019 | June 30, 2019 | June 30, 2019 | ||||||||||||||||||
Assets: |
||||||||||||||||||||
Cash and due from banks |
¥ | 57,411,276 | ¥ | 58,018,346 | $ | 538,453 | ||||||||||||||
Call loans and bills bought |
2,465,744 | 1,552,415 | 14,408 | |||||||||||||||||
Receivables under resale agreements |
6,429,365 | 5,959,002 | 55,304 | |||||||||||||||||
Receivables under securities borrowing transactions |
4,097,473 | 3,583,687 | 33,259 | |||||||||||||||||
Monetary claims bought |
4,594,578 | 4,625,271 | 42,926 | |||||||||||||||||
Trading assets |
5,328,778 | 6,778,464 | 62,909 | |||||||||||||||||
Money held in trust |
390 | 366 | 3 | |||||||||||||||||
Securities |
*2 | 24,338,005 | *2 | 24,076,935 | 223,452 | |||||||||||||||
Loans and bills discounted |
*1 | 77,979,190 | *1 | 77,964,216 | 723,566 | |||||||||||||||
Foreign exchanges |
1,719,402 | 2,329,290 | 21,618 | |||||||||||||||||
Lease receivables and investment assets |
247,835 | 256,908 | 2,384 | |||||||||||||||||
Other assets |
7,307,305 | 7,796,441 | 72,357 | |||||||||||||||||
Tangible fixed assets |
1,504,703 | 1,501,670 | 13,937 | |||||||||||||||||
Intangible fixed assets |
769,231 | 793,314 | 7,363 | |||||||||||||||||
Net defined benefit asset |
329,434 | 336,206 | 3,120 | |||||||||||||||||
Deferred tax assets |
40,245 | 20,731 | 192 | |||||||||||||||||
Customers liabilities for acceptances and guarantees |
9,564,993 | 9,451,934 | 87,721 | |||||||||||||||||
Reserve for possible loan losses |
(468,808) | (472,682) | (4,387) | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total assets |
¥ | 203,659,146 | ¥ | 204,572,522 | $ | 1,898,585 | ||||||||||||||
|
|
|
|
|
|
1
QUARTERLY CONSOLIDATED BALANCE SHEETS
Millions of yen |
Millions of
U.S. dollars |
|||||||||||||||||||
March 31, 2019 | June 30, 2019 | June 30, 2019 | ||||||||||||||||||
Liabilities and net assets: |
||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Deposits |
¥ | 122,325,038 | ¥ | 121,432,599 | $ | 1,126,985 | ||||||||||||||
Negotiable certificates of deposit |
11,165,486 | 10,931,951 | 101,457 | |||||||||||||||||
Call money and bills sold |
1,307,778 | 1,435,254 | 13,320 | |||||||||||||||||
Payables under repurchase agreements |
11,462,559 | 10,782,691 | 100,071 | |||||||||||||||||
Payables under securities lending transactions |
1,812,820 | 1,675,108 | 15,546 | |||||||||||||||||
Commercial paper |
2,291,813 | 2,136,549 | 19,829 | |||||||||||||||||
Trading liabilities |
4,219,293 | 4,730,915 | 43,906 | |||||||||||||||||
Borrowed money |
10,656,897 | 11,547,138 | 107,166 | |||||||||||||||||
Foreign exchanges |
1,165,141 | 1,294,507 | 12,014 | |||||||||||||||||
Short-term bonds |
84,500 | 172,500 | 1,601 | |||||||||||||||||
Bonds |
9,227,367 | 9,131,716 | 84,749 | |||||||||||||||||
Due to trust account |
1,352,773 | 1,578,275 | 14,648 | |||||||||||||||||
Other liabilities |
4,873,630 | 6,411,607 | 59,504 | |||||||||||||||||
Reserve for employee bonuses |
70,351 | 28,933 | 269 | |||||||||||||||||
Reserve for executive bonuses |
3,091 | | | |||||||||||||||||
Net defined benefit liability |
31,816 | 33,325 | 309 | |||||||||||||||||
Reserve for executive retirement benefits |
1,374 | 1,056 | 10 | |||||||||||||||||
Reserve for point service program |
23,948 | 24,698 | 229 | |||||||||||||||||
Reserve for reimbursement of deposits |
7,936 | 5,798 | 54 | |||||||||||||||||
Reserve for losses on interest repayment |
147,594 | 137,418 | 1,275 | |||||||||||||||||
Reserves under the special laws |
2,847 | 2,847 | 26 | |||||||||||||||||
Deferred tax liabilities |
378,220 | 373,969 | 3,471 | |||||||||||||||||
Deferred tax liabilities for land revaluation |
30,259 | 30,237 | 281 | |||||||||||||||||
Acceptances and guarantees |
9,564,993 | 9,451,934 | 87,721 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
192,207,534 | 193,351,035 | 1,794,441 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Net assets: |
||||||||||||||||||||
Capital stock |
2,339,443 | 2,339,443 | 21,712 | |||||||||||||||||
Capital surplus |
739,047 | 691,542 | 6,418 | |||||||||||||||||
Retained earnings |
5,992,247 | 6,075,295 | 56,383 | |||||||||||||||||
Treasury stock |
(16,302) | (68,274) | (634) | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total stockholders equity |
9,054,436 | 9,038,005 | 83,879 | |||||||||||||||||
|
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|
|
|
|
|||||||||||||||
Net unrealized gains (losses) on other securities |
1,688,852 | 1,624,151 | 15,073 | |||||||||||||||||
Net deferred gains (losses) on hedges |
(54,650) | (5,675) | (53) | |||||||||||||||||
Land revaluation excess |
36,547 | 36,497 | 339 | |||||||||||||||||
Foreign currency translation adjustments |
50,379 | 8,617 | 80 | |||||||||||||||||
Accumulated remeasurements of defined benefit plans |
(7,244) | (6,534) | (61) | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total accumulated other comprehensive income |
1,713,884 | 1,657,056 | 15,379 | |||||||||||||||||
|
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|
|
|
|
|||||||||||||||
Stock acquisition rights |
4,750 | 4,062 | 38 | |||||||||||||||||
Non-controlling interests |
678,540 | 522,362 | 4,848 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total net assets |
11,451,611 | 11,221,487 | 104,144 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total liabilities and net assets |
¥ | 203,659,146 | ¥ | 204,572,522 | $ | 1,898,585 | ||||||||||||||
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|
|
|
|
2
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
Millions of yen |
Millions of
U.S. dollars |
|||||||||||||||||||
Three months ended June 30 |
2018 | 2019 | 2019 | |||||||||||||||||
Ordinary income |
¥ | 1,426,372 | ¥ | 1,334,510 | $ | 12,385 | ||||||||||||||
Interest income |
578,790 | 625,540 | 5,805 | |||||||||||||||||
Interest on loans and discounts |
384,609 | 446,534 | 4,144 | |||||||||||||||||
Interest and dividends on securities |
85,399 | 68,240 | 633 | |||||||||||||||||
Trust fees |
1,086 | 1,002 | 9 | |||||||||||||||||
Fees and commissions |
302,911 | 307,293 | 2,852 | |||||||||||||||||
Trading income |
47,293 | 63,959 | 594 | |||||||||||||||||
Other operating income |
425,980 | 273,844 | 2,541 | |||||||||||||||||
Other income |
*1 | 70,310 | *1 | 62,868 | 583 | |||||||||||||||
Ordinary expenses |
1,094,479 | 1,073,067 | 9,959 | |||||||||||||||||
Interest expenses |
245,182 | 322,841 | 2,996 | |||||||||||||||||
Interest on deposits |
98,903 | 128,398 | 1,192 | |||||||||||||||||
Fees and commissions payments |
48,959 | 52,569 | 488 | |||||||||||||||||
Trading losses |
1,154 | | | |||||||||||||||||
Other operating expenses |
341,631 | 214,209 | 1,988 | |||||||||||||||||
General and administrative expenses |
428,772 | 432,641 | 4,015 | |||||||||||||||||
Other expenses |
*2 | 28,778 | *2 | 50,805 | 472 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Ordinary profit |
331,893 | 261,442 | 2,426 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Extraordinary gains |
*3 | 136 | *3 | 22,010 | 204 | |||||||||||||||
Extraordinary losses |
*4 | 1,405 | *4 | 1,069 | 10 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Income before income taxes |
330,624 | 282,383 | 2,621 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Income taxes |
82,937 | 60,688 | 563 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Profit |
247,687 | 221,695 | 2,057 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Profit attributable to non-controlling interests |
20,602 | 5,967 | 55 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Profit attributable to owners of parent |
¥ | 227,084 | ¥ | 215,727 | $ | 2,002 | ||||||||||||||
|
|
|
|
|
|
3
QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions of yen |
Millions of
U.S. dollars |
|||||||||||||||||||
Three months ended June 30 |
2018 | 2019 | 2019 | |||||||||||||||||
Profit |
¥ | 247,687 | ¥ | 221,695 | $ | 2,057 | ||||||||||||||
Other comprehensive income |
67,608 | (55,999) | (520) | |||||||||||||||||
Net unrealized gains (losses) on other securities |
107,188 | (65,526) | (608) | |||||||||||||||||
Net deferred gains (losses) on hedges |
(8,639) | 53,910 | 500 | |||||||||||||||||
Foreign currency translation adjustments |
(1,322) | (45,657) | (424) | |||||||||||||||||
Remeasurements of defined benefit plans |
(2,804) | 748 | 7 | |||||||||||||||||
Share of other comprehensive income of affiliates |
(26,813) | 525 | 5 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total comprehensive income |
315,295 | 165,695 | 1,538 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Comprehensive income attributable to owners of parent |
275,153 | 158,949 | 1,475 | |||||||||||||||||
Comprehensive income attributable to non-controlling interests |
40,142 | 6,746 | 63 |
4
NOTES TO UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS
(Basis of presentation)
Sumitomo Mitsui Financial Group, Inc. (the Company) was established on December 2, 2002 as a holding company for the SMBC group through a statutory share transfer ( kabushiki iten ) of all of the outstanding equity securities of Sumitomo Mitsui Banking Corporation (SMBC) in exchange for the Companys newly issued securities. The Company is a joint stock corporation with limited liability ( Kabushiki Kaisha ) incorporated under the Companies Act of Japan. Upon formation of the Company and completion of the statutory share transfer, SMBC became a direct wholly owned subsidiary of the Company.
The Company has prepared the accompanying consolidated financial statements in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan (Japanese GAAP), which are different in certain respects as to application and disclosure requirements from International Financial Reporting Standards (IFRS).
The accounts of overseas subsidiaries and affiliated companies are, in principle, integrated with those of the Companys accounting policies for purposes of consolidation unless they apply different accounting principles and standards as required under U.S. GAAP or IFRS, in which case a certain limited number of items are adjusted based on their materiality.
These consolidated financial statements are translated from the consolidated financial statements contained in the quarterly securities report filed under the Financial Instruments and Exchange Act of Japan (FIEA based financial statements) except for the addition of U.S. dollar figures.
Amounts less than 1 million yen have been rounded down. As a result, the totals in Japanese yen shown in the financial statements do not necessarily agree with the sum of the individual amounts.
The translation of the Japanese yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan, using the prevailing exchange rate at June 30, 2019 which was ¥107.75 to US$1. These translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at that rate.
5
(Changes in the scope of consolidation or in the scope of equity method)
(1) |
Significant changes in the scope of consolidation |
Not applicable.
(2) |
Significant changes in the scope of equity method |
Daiwa SB Investments Ltd. was excluded from the scope of equity method affiliates from the three months ended June 30, 2019 as it ceased to be an affiliate due to a merger.
(Applied special accounting methods used for preparing quarterly consolidated financial statements)
Accounting treatment of tax expenses
The Company and certain domestic consolidated subsidiaries calculated tax expenses by multiplying Income before income taxes by an effective tax rate that was reasonably estimated by applying tax effect accounting to estimated Income before income taxes for the fiscal year ending March 31, 2020 including the period for the three months ended June 30, 2019.
Amounts of Income taxes include Income taxes-deferred.
(Notes to quarterly consolidated balance sheets)
*1 |
Risk-monitored loans |
Risk-monitored loans at March 31, 2019 and June 30, 2019 were as follows:
Millions of yen | ||||||||
March 31, 2019 | June 30, 2019 | |||||||
Bankrupt loans |
¥ | 12,806 | ¥ | 14,549 | ||||
Non-accrual loans |
456,802 | 462,457 | ||||||
Past due loans (3 months or more) |
13,444 | 15,821 | ||||||
Restructured loans |
193,427 | 209,359 | ||||||
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|
|
|
|||||
Risk-monitored loans |
¥ | 676,481 | ¥ | 702,188 |
The amounts of loans presented above are the amounts before deduction of reserve for possible loan losses.
*2 |
Guaranteed amount to privately-placed bonds |
The amounts guaranteed by SMBC and its banking subsidiaries to privately-placed bonds (stipulated by Article 2-3 of the Financial Instruments and Exchange Act) in Securities at March 31, 2019 and June 30, 2019 were as follows:
Millions of yen | ||||||||
March 31, 2019 | June 30, 2019 | |||||||
Guaranteed amount to privately-placed bonds |
¥ | 1,662,777 | ¥ | 1,622,205 |
6
(Notes to quarterly consolidated statements of income)
*1 |
Other income |
Other income for the three months ended June 30, 2018 and 2019 included the following:
Three months ended June 30, 2018 |
Millions of yen |
Three months ended June 30, 2019 |
Millions of yen | |||||
Gains on sales of stocks |
¥ 33,015 |
Gains on sales of stocks |
¥ | 37,186 |
*2 |
Other expenses |
Other expenses for the three months ended June 30, 2018 and 2019 included the following:
Three months ended June 30, 2018 |
Millions of yen |
Three months ended June 30, 2019 |
Millions of yen | |||||
Write-off of loans |
¥ 18,147 |
Provision for reserve for possible loan losses |
¥ | 23,031 |
*3 |
Extraordinary gains |
Extraordinary gains for the three months ended June 30, 2018 and 2019 included the following:
Three months ended June 30, 2018 |
Millions of yen |
Three months ended June 30, 2019 |
Millions of yen | |||||
Gains on disposal of fixed assets |
¥ 136 |
Gains on step acquisitions |
¥ | 21,997 |
*4 |
Extraordinary losses |
Extraordinary losses for the three months ended June 30, 2018 and 2019 included the following:
Three months ended June 30, 2018 |
Millions of yen |
Three months ended June 30, 2019 |
Millions of yen | |||||||
Losses on impairment of fixed assets |
¥ | 610 | Losses on impairment of fixed assets | ¥ | 650 | |||||
Losses on disposal of fixed assets |
613 | Losses on disposal of fixed assets | 419 |
7
(Notes to quarterly consolidated statements of cash flows)
Quarterly consolidated statements of cash flows are not prepared for the three months ended June 30, 2019. Depreciation (including amortization of intangible fixed assets other than goodwill) and Amortization of goodwill for the three months ended June 30, 2018 and 2019 are as follows:
Millions of yen | ||||||||
Three months ended June 30 |
2018 | 2019 | ||||||
Depreciation |
¥ | 70,701 | ¥ | 50,803 | ||||
Amortization of goodwill |
5,725 | 4,337 |
(Notes to stockholders equity)
Dividends paid in the three months ended June 30, 2018
Date of resolution |
Type of shares | Millions of yen, except per share amount | ||||||||||||||||
Cash dividends |
Cash
dividends per share |
Record date | Effective date |
Source of
dividends |
||||||||||||||
Ordinary general meeting of shareholders
|
Common stock | ¥ | 126,950 | ¥ | 90 | March 31, 2018 | June 29, 2018 |
Retained
earnings |
Dividends paid in the three months ended June 30, 2019
|
Date of resolution |
Type of shares | Millions of yen, except per share amount | ||||||||||||||||
Cash dividends |
Cash
dividends per share |
Record date | Effective date |
Source of
dividends |
||||||||||||||
Ordinary general meeting of shareholders
|
Common stock | ¥ | 132,582 | ¥ | 95 | March 31, 2019 | June 28, 2019 |
Retained
earnings |
8
(Notes to segment and other related information)
[Segment information]
1. Information on profit and loss amount by reportable segment
Millions of yen | ||||||||||||||||||||||||||||
Three months ended June 30, 2018 |
Wholesale
Business Unit |
Retail
Business Unit |
International
Business Unit |
Global Markets
Business Unit |
Head office
account and others |
Total | ||||||||||||||||||||||
Consolidated gross profit |
¥ | 182,380 | ¥ | 315,662 | ¥ | 163,711 | ¥ | 105,497 | ¥ | (48,117) | ¥ | 719,133 | ||||||||||||||||
Expenses |
(86,009) | (258,271) | (78,680) | (13,125) | 7,314 | (428,772) | ||||||||||||||||||||||
Others |
9,408 | 1,398 | 9,692 | 4,543 | (1,014) | 24,028 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Consolidated net business profit |
¥ | 105,779 | ¥ | 58,789 | ¥ | 94,724 | ¥ | 96,915 | ¥ | (41,817) | ¥ | 314,389 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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. |
Millions of yen | ||||||||||||||||||||||||||||
Three months ended June 30, 2019 |
Wholesale
Business Unit |
Retail
Business Unit |
International
Business Unit |
Global Markets
Business Unit |
Head office
account and others |
Total | ||||||||||||||||||||||
Consolidated gross profit |
¥ | 144,341 | ¥ | 302,568 | ¥ | 159,833 | ¥ | 135,020 | ¥ | (59,742) | ¥ | 682,021 | ||||||||||||||||
Expenses |
(68,978) | (252,729) | (90,719) | (14,279) | (5,936) | (432,641) | ||||||||||||||||||||||
Others |
10,468 | 430 | 15,465 | 6,902 | (13,469) | 19,796 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Consolidated net business profit |
¥ | 85,830 | ¥ | 50,270 | ¥ | 84,579 | ¥ | 127,644 | ¥ | (79,147) | ¥ | 269,176 | ||||||||||||||||
|
|
|
|
|
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|
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|
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|
||||
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. |
2. |
Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on quarterly consolidated statements of income (adjustment of difference) |
Note: Figures shown in the parenthesis represent the loss.
9
(Notes to financial instruments)
There are no significant matters to be disclosed regarding financial instruments.
(Notes to securities)
The amounts shown in the following tables include negotiable certificates of deposit classified as Cash and due from banks and beneficiary claims on loan trust classified as Monetary claims bought, in addition to Securities stated in the consolidated balance sheets.
1. Bonds classified as held-to-maturity
10
2. Other securities
Millions of yen | ||||||||||||||||
March 31, 2019 |
Acquisition cost |
Consolidated
balance sheet amount |
Net unrealized
gains (losses) |
|||||||||||||
Stocks |
¥ | 1,444,638 | ¥ | 3,347,577 | ¥ | 1,902,938 | ||||||||||
Bonds |
8,923,365 | 8,983,731 | 60,365 | |||||||||||||
Japanese government bonds |
6,211,070 | 6,234,326 | 23,255 | |||||||||||||
Japanese local government bonds |
98,428 | 99,164 | 735 | |||||||||||||
Japanese corporate bonds |
2,613,866 | 2,650,240 | 36,374 | |||||||||||||
Other |
10,725,378 | 11,083,416 | 358,038 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total |
¥ | 21,093,383 | ¥ | 23,414,725 | ¥ | 2,321,342 | ||||||||||
|
|
|
|
|
|
Notes: | 1. |
Consolidated balance sheet amounts of stocks (including foreign stocks) are carried at their average market prices during the final month of the fiscal year, and bonds and others are carried at their fiscal year-end market prices. |
||
2. |
Net unrealized gains on other securities shown above include losses of ¥12,277 million for the fiscal year ended March 31, 2019 which are recognized in the earnings by applying fair value hedge accounting. |
|||
3. |
Consolidated balance sheet amounts of other securities whose fair values are extremely difficult to determine are as follows: |
March 31, 2019 |
Millions of yen | |||
Stocks |
¥ | 139,051 | ||
Other |
246,765 | |||
|
|
|||
Total |
¥ | 385,817 | ||
|
|
These amounts are not included in 2. Other securities since there are no market prices and it is extremely difficult to determine their fair values. |
||||
4. |
In light of the Practical Solution on Measurement of Fair Value for Financial Assets (ASBJ Practical Issue Task Force No. 25), the fair values of floating rate government bonds are based on the present value of future cash flows (the government bond yield is used to discount and estimate future cash flows). Bond yield and yield volatility are the main price parameters. |
Millions of yen | ||||||||||||||||
June 30, 2019 |
Acquisition cost |
Consolidated
balance sheet amount |
Net unrealized
gains (losses) |
|||||||||||||
Stocks |
¥ | 1,417,783 | ¥ | 3,149,594 | ¥ | 1,731,811 | ||||||||||
Bonds |
8,985,408 | 9,051,977 | 66,568 | |||||||||||||
Japanese government bonds |
6,207,018 | 6,234,379 | 27,360 | |||||||||||||
Japanese local government bonds |
121,671 | 122,422 | 750 | |||||||||||||
Japanese corporate bonds |
2,656,718 | 2,695,175 | 38,457 | |||||||||||||
Other |
10,524,871 | 10,970,524 | 445,653 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total |
¥ | 20,928,062 | ¥ | 23,172,096 | ¥ | 2,244,033 | ||||||||||
|
|
|
|
|
|
Notes: | 1. |
Quarterly consolidated balance sheet amounts of stocks (including foreign stocks) are carried at their average market prices during the final month of the period, and bonds and others are carried at their period-end market prices. |
||
2. |
Net unrealized losses on other securities shown above include losses of ¥11,751 million for the three months ended June 30, 2019 that are recognized in the earnings by applying fair value hedge accounting. |
|||
3. |
Consolidated balance sheet amounts of other securities whose fair values are extremely difficult to determine are as follows: |
June 30, 2019 |
Millions of yen | |||
Stocks |
¥ | 140,466 | ||
Other |
255,059 | |||
|
|
|||
Total |
¥ | 395,525 | ||
|
|
These amounts are not included in 2. Other securities since there are no market prices and it is extremely difficult to determine their fair values. |
||||
4. |
In light of the Practical Solution on Measurement of Fair Value for Financial Assets (ASBJ Practical Issue Task Force No. 25), the fair values of floating rate government bonds are based on the present value of future cash flows (the government bond yield is used to discount and estimate future cash flows). Bond yield and yield volatility are the main price parameters. |
11
3. Write-down of securities
Bonds classified as held-to-maturity and other securities (excluding securities whose fair values are extremely difficult to determine) are considered as impaired if the fair value decreases materially below the acquisition cost and such decline is not considered as recoverable. The fair value is recognized as the consolidated balance sheet amount and the amount of write-down is accounted for as valuation loss. Valuation losses for the fiscal year ended March 31, 2019 and for the three months ended June 30, 2019 were ¥9,013 million and ¥3,583 million, respectively. The rule for determining material decline is as follows and is based on the classification of issuers under the rules of self-assessment of assets.
Bankrupt/Effectively bankrupt/Potentially bankrupt issuers: | Fair value is lower than acquisition cost. | |||
Issuers requiring caution: | Fair value is 30% or lower than acquisition cost. | |||
Normal issuers: | Fair value is 50% or lower than acquisition cost. |
Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt.
Effectively bankrupt issuers: Issuers that are not legally bankrupt but regarded as substantially bankrupt.
Potentially bankrupt issuers: Issuers that are not bankrupt now, but are perceived to have a high risk of falling into bankruptcy.
Issuers requiring caution: Issuers that are identified for close monitoring.
Normal issuers: Issuers other than the above 4 categories of issuers.
(Notes to money held in trust)
1. Money held in trust classified as held-to-maturity
Fiscal year ended March 31, 2019
There are no corresponding transactions.
Three months ended June 30, 2019
There are no corresponding transactions.
2. Other money held in trust (Other than trading and held to maturity)
12
(Notes to derivative transactions)
(1) |
Interest rate derivatives |
Millions of yen | ||||||||||||
March 31, 2019 |
Contract amount | Fair Value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Interest rate futures |
¥ | 59,431,284 | ¥ | 618 | ¥ | 618 | ||||||
Interest rate options |
134,241,530 | 22,079 | 22,079 | |||||||||
Over-the-counter |
||||||||||||
Forward rate agreements |
54,470,715 | (542) | (542) | |||||||||
Interest rate swaps |
444,871,798 | 294,408 | 294,408 | |||||||||
Interest rate swaptions |
12,036,115 | (480) | (480) | |||||||||
Caps |
59,064,895 | (51,326) | (51,326) | |||||||||
Floors |
2,193,601 | 780 | 780 | |||||||||
Other |
9,288,882 | 28,837 | 28,837 | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | 294,374 | ¥ | 294,374 | |||||||
|
|
|
|
|
|
|
||||||||||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income. Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
Millions of yen | ||||||||||||
June 30, 2019 |
Contract amount | Fair Value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Interest rate futures |
¥ | 97,479,668 | ¥ | (1,031) | ¥ | (1,031) | ||||||
Interest rate options |
160,307,366 | 14,081 | 14,081 | |||||||||
Over-the-counter |
||||||||||||
Forward rate agreements |
75,362,356 | 4 | 4 | |||||||||
Interest rate swaps |
458,415,099 | 385,641 | 385,641 | |||||||||
Interest rate swaptions |
12,063,197 | (7,742) | (7,742) | |||||||||
Caps |
60,239,746 | (26,161) | (26,161) | |||||||||
Floors |
2,625,168 | 308 | 308 | |||||||||
Other |
9,496,502 | 25,115 | 25,115 | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | 390,215 | ¥ | 390,215 | |||||||
|
|
|
|
|
|
|
||||||||||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income. Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
13
(2) |
Currency derivatives |
Millions of yen | ||||||||||||
March 31, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Currency futures |
¥ | 3,942 | ¥ | 21 | ¥ | 21 | ||||||
Over-the-counter |
||||||||||||
Currency swaps |
46,383,650 | 82,884 | 76,881 | |||||||||
Currency swaptions |
1,158,840 | 855 | 855 | |||||||||
Forward foreign exchange |
81,510,434 | 24,012 | 24,012 | |||||||||
Currency options |
5,708,189 | 5,294 | 5,294 | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | 113,069 | ¥ | 107,066 | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income. Derivative transactions to which the hedge accounting method is applied are not included in the table above. In addition, transactions related to financial assets and liabilities denominated in foreign currencies and recognized in the consolidated balance sheets, or transactions related to financial assets and liabilities denominated in foreign currencies which have been eliminated in the consolidation are not included in the above table. |
Millions of yen | ||||||||||||
June 30, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Currency futures |
¥ | 2,891 | ¥ | 814 | ¥ | 814 | ||||||
Over-the-counter |
||||||||||||
Currency swaps |
49,827,239 | 48,041 | 62,642 | |||||||||
Currency swaptions |
1,135,522 | 1,348 | 1,348 | |||||||||
Forward foreign exchange |
77,023,959 | (73,713) | (73,713) | |||||||||
Currency options |
5,552,695 | 8,047 | 8,047 | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | (15,462) | ¥ | (860) | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income. Derivative transactions to which the hedge accounting method is applied are not included in the table above. In addition, transactions related to financial assets and liabilities denominated in foreign currencies and recognized in the quarterly consolidated balance sheets, or transactions related to financial assets and liabilities denominated in foreign currencies which have been eliminated in the consolidation are not included in the above table. |
14
(3) |
Equity derivatives |
Millions of yen | ||||||||||||
Contract amount | Fair value |
Valuation
gains (losses) |
||||||||||
March 31, 2019 |
||||||||||||
Listed | ||||||||||||
Equity price index futures |
¥ | 931,225 | ¥ | 2,088 | ¥ | 2,088 | ||||||
Equity price index options |
1,259,342 | (27,469) | (27,469) | |||||||||
Over-the-counter |
||||||||||||
Equity options |
721,754 | (1,529) | (1,529) | |||||||||
Equity index forward contracts |
8,094 | 554 | 554 | |||||||||
Equity index swaps |
322,428 | 13,521 | 13,521 | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | (12,835) | ¥ | (12,835) | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income. Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
Millions of yen | ||||||||||||
Contract amount | Fair value |
Valuation
gains (losses) |
||||||||||
June 30, 2019 |
||||||||||||
Listed |
||||||||||||
Equity price index futures |
¥ | 1,201,661 | ¥ | 1,973 | ¥ | 1,973 | ||||||
Equity price index options |
1,214,247 | (23,140) | (23,140) | |||||||||
Over-the-counter |
||||||||||||
Equity options |
699,091 | (809) | (809) | |||||||||
Equity index forward contracts |
12,411 | 212 | 212 | |||||||||
Equity index swaps |
335,756 | 13,948 | 13,948 | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | (7,815) | ¥ | (7,815) | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income. Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
15
(4) |
Bond derivatives |
Millions of yen | ||||||||||||
March 31, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Bond futures |
¥ | 3,901,032 | ¥ | (2,233) | ¥ | (2,233) | ||||||
Bond futures options |
491,611 | (541) | (541) | |||||||||
Over-the-counter |
||||||||||||
Bond forward contracts |
1,328 | 2 | 2 | |||||||||
Bond options |
1,100,342 | (1,033) | (1,033) | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | (3,805) | ¥ | (3,805) | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income. |
|
Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
Millions of yen | ||||||||||||
June 30, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Bond futures |
¥ | 5,452,176 | ¥ | (28) | ¥ | (28) | ||||||
Bond futures options |
247,490 | (181) | (181) | |||||||||
Over-the-counter |
||||||||||||
Bond options |
693,218 | 126 | 126 | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | (83) | ¥ | (83) | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income. |
|
Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
16
(5) |
Commodity derivatives |
Millions of yen | ||||||||||||
March 31, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Commodity futures |
¥ | 28,823 | ¥ | 30 | ¥ | 30 | ||||||
Over-the-counter |
||||||||||||
Commodity swaps |
183,117 | 1,915 | 1,915 | |||||||||
Commodity options |
13,714 | (388) | (388) | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | 1,556 | ¥ | 1,556 | |||||||
|
|
|
|
|
|
|
||||
Notes: | 1. |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income. |
||
Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
||||
2. |
Underlying assets of commodity derivatives are fuels and metals. |
Millions of yen | ||||||||||||
June 30, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Listed |
||||||||||||
Commodity futures |
¥ | 63,672 | ¥ | (24) | ¥ | (24) | ||||||
Over-the-counter |
||||||||||||
Commodity swaps |
175,284 | 1,853 | 1,853 | |||||||||
Commodity options |
8,975 | (374) | (374) | |||||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | 1,453 | ¥ | 1,453 | |||||||
|
|
|
|
|
|
|
||||
Notes: |
1. |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income. |
||
Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
||||
2. |
Underlying assets of commodity derivatives are fuels and metals. |
17
(6) |
Credit derivative transactions |
Millions of yen | ||||||||||||
March 31, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Over-the-counter |
||||||||||||
Credit default options |
¥ | 1,504,765 | ¥ | (651) | ¥ | (651) | ||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | (651) | ¥ | (651) | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income. |
|
Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
Millions of yen | ||||||||||||
June 30, 2019 |
Contract amount | Fair value |
Valuation
gains (losses) |
|||||||||
Over-the-counter |
||||||||||||
Credit default options |
¥ | 1,621,285 | ¥ | (1,964) | ¥ | (1,964) | ||||||
|
|
|
|
|
|
|||||||
Total |
/ | ¥ | (1,964) | ¥ | (1,964) | |||||||
|
|
|
|
|
|
|
||
Note: |
The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income. |
|
Derivative transactions to which the hedge accounting method is applied are not included in the table above. |
18
(Business combination)
<Business combination through acquisition>
Merger between Sumitomo Mitsui Asset Management Company, Limited and Daiwa SB Investments Ltd.
On April 1, 2019, Sumitomo Mitsui Asset Management Company, Limited (SMAM), a consolidated subsidiary of the Company, merged with Daiwa SB Investments Ltd. (DSBI), an equity method affiliate of the Company, under a merger agreement concluded on September 28, 2018 between SMAM and DSBI. The trade name of the merged company is Sumitomo Mitsui DS Asset Management Company, Limited.
The outline of the merger is as follows:
1. |
Outline of the business combination |
(1) |
Name of the acquired company and its business |
Name: |
Daiwa SB Investments Ltd. |
|
Business: |
Investment management (discretionary/advisory) and investment trust fund management |
(2) |
Main reasons for the business combination |
The asset management business is undergoing global growth, and the investment management capabilities and services desired by clients are progressively becoming more sophisticated. The merger aims to establish an asset management company that combines the strengths and expertise of SMAM and DSBI, and offers the highest quality of investment management performance and services based on its fiduciary duties, in order to address the aforesaid client needs.
(3) |
Date of the business combination |
April 1, 2019
(4) |
Legal form of the business combination |
The structure of the merger is an absorption-type merger with SMAM as the surviving company and DSBI as the absorbed company.
(5) |
Name of the entity after the business combination |
Sumitomo Mitsui Financial Group, Inc.
(6) |
The ratio of acquired voting rights |
Ratio of voting rights owned by the Company immediately prior to the business combination: 48.96%
Ratio of voting rights increased on the date of business combination: 1.16%
Ratio of voting rights after the merger: 50.12%
(7) |
Grounds for deciding on the acquirer |
The Company owns a majority of the voting rights of Sumitomo Mitsui DS Asset Management Company, Limited.
2. |
Period of the acquired companys financial result included in the quarterly consolidated statements of income of the Company |
From April 1, 2019 to June 30, 2019
3. |
Acquisition cost and consideration of the acquired company |
Fair value at the business combination of the common shares of DSBI held by the Company immediately prior to the business combination |
40,111 million yen | |
Consideration (shares of SMAM) for the common shares of DSBI additionally acquired by the Company on the date of business combination |
958 million yen | |
|
||
Acquisition cost of the acquired company |
41,070 million yen |
19
4. |
Merger ratio according to the type of shares, method of calculation of merger ratio and number of shares delivered |
(1) |
Type of shares and merger ratio |
Common share SMAM 1: DSBI 4.2156
(2) |
Method of calculation of merger ratio |
SMAM and DSBI conducted careful discussion on the merger ratio following a comprehensive consideration of the financial condition, asset condition and future prospects of the two companies based on the analysis by each third party appraiser regarding merger ratio, Ernst & Young Transaction Advisory Services Co., Ltd., appointed by SMAM, and PwC Advisory LLC, appointed by DSBI. As a result, SMAM and DSBI concluded that the merger ratio was appropriate and reached an agreement.
(3) |
Number of shares delivered |
Common share of SMAM 16,230,060 stocks
5. |
Difference between acquisition cost and total amount of acquisition cost of each transaction |
Acquisition cost |
41,070 million yen | |||
Sum of acquisition costs of each transaction resulting in the acquisition |
19,072 million yen | |||
|
||||
Difference (gains on step acquisitions) |
21,997 million yen |
6. |
Amount of goodwill, reason for recognizing goodwill, amortization method and the period |
(1) |
Amount of goodwill |
17,022 million yen
(2) |
Reason for recognizing goodwill |
The Company accounted for the difference between the acquisition cost and fair value of the acquired net assets on the date of the business combination as goodwill.
(3) |
Amortization method and the period |
Goodwill is amortized using the straight-line method over 14 years.
(Per share data)
Earnings per share, earnings per share (diluted) and each calculation method are as follows:
Millions of yen, except per share data
and number of shares |
||||||||||
Three months ended June 30 |
2018 | 2019 | ||||||||
(i) Earnings per share |
¥ | 161.78 | ¥ | 155.24 | ||||||
[The calculation method] |
||||||||||
Profit attributable to owners of parent |
227,084 | 215,727 | ||||||||
Amount not attributable to common stockholders |
| | ||||||||
Profit attributable to owners of parent concerning common stock |
227,084 | 215,727 | ||||||||
Average number of common stock during the period (in thousands) |
1,403,702 | 1,389,636 | ||||||||
(ii) Earnings per share (diluted) |
¥ | 161.67 | ¥ | 155.14 | ||||||
[The calculation method] |
||||||||||
Adjustment for profit attributable to owners of parent |
(3) | (7) | ||||||||
Adjustment of dilutive shares issued by consolidated subsidiaries and equity method affiliates |
(3) | (7) | ||||||||
Increase in the number of common stock (in thousands) |
927 | 846 | ||||||||
Stock acquisition rights (in thousands) |
927 | 846 |
20
(Significant Subsequent Events)
There are no significant subsequent events to be disclosed.
(Others)
Not applicable.
21