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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 July 2022

Commission File Number 001-34919

SUMITOMO MITSUI FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

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

(Address of principal executive offices)

 

 

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

   Form 20-F  ☒    Form 40-F  ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):      
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):      
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.    Yes  ☐    No  ☒
*If ‘‘Yes’’ is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):    82-                   

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF SUMITOMO MITSUI FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-261754) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED, EXCEPT FOR THE STATEMENTS REGARDING OUR EARNINGS FORECAST UNDER THE CAPTION “3. EARNINGS FORECAST ON A CONSOLIDATED BASIS (FOR THE FISCAL YEAR ENDING MARCH 31, 2023).”


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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:    July 29, 2022


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July 29, 2022

 

LOGO   

Sumitomo Mitsui Financial Group, Inc.

Consolidated Financial Results for the three months ended June 30, 2022

<Under Japanese GAAP>

   LOGO

Head Office: 1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

Stock Exchange Listings: Tokyo Stock Exchange, Nagoya Stock Exchange, New York Stock Exchange

URL: https://www.smfg.co.jp/english/

President: Jun Ohta

Quarterly Securities Report (Shihanki hokokusho) issuing date: August 12, 2022

Investors meeting presentation for quarterly financial results: Not scheduled

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

1. Consolidated financial results (for the three months ended June 30, 2022)

  (1) Operating results

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

        Ordinary income      Ordinary profit      Profit attributable to
owners of parent
 
             

Three months ended June 30, 2022

       ¥  1,331,703            39.9        ¥   349,674          21.7        ¥   252,439          24.2

Three months ended June 30, 2021

       951,725            (1.9      287,240          143.2        203,243          136.1  
Notes:   1.   Comprehensive income:                    
    (a) for the three months ended June 30, 2022:     ¥      391,625 million [50.4%]

 

    (b) for the three months ended June 30, 2021:     ¥      260,319 million [(25.9)%]

 

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

 

                       
            Earnings per share                Earnings per share    
(Diluted)
               

Three months ended June 30, 2022

       ¥  184.14          ¥  184.08          

Three months ended June 30, 2021

         148.30          148.24        
                       
  (2) Financial position                       
                             (Millions of yen, except percentages)  
                Total assets                      Net assets                      Net assets ratio          

June 30, 2022

       ¥  269,691,834        ¥  12,445,416                4.6%  

March 31, 2022

           257,704,625            12,197,331                4.7     
Notes:   1.   Stockholders’ equity:

 

    (a) as of June 30, 2022: ¥12,345,016 million   (b) as of March 31, 2022: ¥12,098,215 million

 

  2.   Net assets ratio = {(Net assets – stock acquisition rights – non-controlling interests) / total assets} X 100

 

2. Dividends on common stock

(Yen)  

     Cash dividends per share  
        1st quarter           2nd quarter            3rd quarter             4th quarter                Annual         

Fiscal year ended March 31, 2022

    ¥  —            ¥  105.00        ¥  —            ¥  105.00        ¥  210.00   

Fiscal year ending March 31, 2023

        —                               

Fiscal year ending March 31, 2023 (Forecast)

            110.00        —            110.00       220.00   
Note: Dividend forecast remains unchanged.          

3. Earnings forecast on a consolidated basis (for the fiscal year ending March 31, 2023)

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

                                                                                                                                                                         
         Profit  attributable to owners of parent       Earnings per  share

Fiscal year ending March 31, 2023

  ¥  730,000   3.3%   ¥  542.39
Notes:   1.   Earnings forecast remains unchanged.
  2.   Percentage shown in profit attributable to owners of parent is the increase (decrease) from the previous fiscal year.
  3.   Forecasted earnings per share is calculated by dividing forecasted profit attributable to owners of parent by the number of issued common stocks (excluding treasury stocks) as of June 30, 2022. The Board of Directors resolved on November 12, 2021 to repurchase its own shares, and the number of issued common stocks (excluding treasury stocks) is taking into account the impact of repurchase of its own shares.


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* Notes

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

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

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

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

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

   : Yes

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

   : No

(c) Changes in accounting estimates

   : No

(d) Restatements

   : No

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

(4) Number of shares issued (common stocks)

 

   

   As of June 30, 2022   

         

    As of March 31, 2022      

                           

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

  1,374,362,102 shares     1,374,362,102 shares   

(b) Number of treasury stocks

         3,466,493 shares            3,542,321 shares   
   

Three months ended  
June 30, 2022

     

Three months ended  
June 30, 2021  

    

(c) Average number of shares issued in the period

  1,370,881,291 shares     1,370,486,421 shares   

[Note on quarterly review process]

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

 

 

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

 


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Sumitomo Mitsui Financial Group, Inc.

 

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1.

   Matters related to summary information (Notes)      2  
  

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

     2  
  

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

     2  

2.

   Consolidated financial statements      3  
  

(1)    Consolidated balance sheets

     3  
  

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

     4  
  

(3)    Note on going concern

     4  
  

(4)    Material changes in stockholders’ equity

     4  

Appendix: Financial results for the three months ended June 30, 2022 supplementary information

 

- 1 -


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Sumitomo Mitsui Financial Group, Inc.

 

1. Matters related to summary information (Notes)

 

(1)

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

The Company and certain domestic consolidated subsidiaries calculated tax expenses by multiplying Income before income taxes by an effective tax rate that was reasonably estimated by applying tax effect accounting to estimated Income before income taxes for the fiscal year ending March 31, 2023 including the period for the three months ended June 30, 2022. Amounts of Income taxes include Income taxes-deferred.

 

(2)

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

Application of Implementation Guidance on Accounting Standard for Fair Value Measurement

The Company applied “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, June 17, 2021) from the beginning of the period for the three months ended June 30, 2022. In accordance with the transitional treatment set forth in Paragraph 27-2 of Implementation Guidance on Accounting Standard for Fair Value Measurement, the Company has prospectively adopted the new accounting policy set forth in Implementation Guidance on Accounting Standard for Fair Value Measurement. There are no effects on consolidated financial statements due to the application of the Implementation Guidance.

 

- 2 -


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Sumitomo Mitsui Financial Group, Inc.

 

2. Consolidated financial statements

    (1) Consolidated balance sheets

 

     Millions of yen  
         March 31, 2022            June 30, 2022      

 

Assets:

     

Cash and due from banks

   ¥ 74,792,123        ¥ 74,646,634    

Call loans and bills bought

     1,965,134          2,091,072    

Receivables under resale agreements

     6,035,507          5,231,799    

Receivables under securities borrowing transactions

     5,649,632          4,777,896    

Monetary claims bought

     5,370,377          5,760,257    

Trading assets

     7,351,878          8,297,478    

Money held in trust

     310          6,810    

Securities

     38,538,724          39,347,789    

Loans and bills discounted

     90,834,056          96,688,452    

Foreign exchanges

     2,812,104          4,448,520    

Lease receivables and investment assets

     228,608          226,746    

Other assets

     10,175,873          12,657,021    

Tangible fixed assets

     1,457,254          1,493,839    

Intangible fixed assets

     898,817          920,660    

Net defined benefit asset

     623,045          634,325    

Deferred tax assets

     66,720          75,710    

Customers’ liabilities for acceptances and guarantees

     11,722,239          13,098,225    

Reserve for possible loan losses

     (817,784)         (711,407)   
  

 

 

    

 

 

 

Total assets

   ¥ 257,704,625        ¥ 269,691,834    
  

 

 

    

 

 

 

Liabilities:

     

Deposits

   ¥ 148,585,460        ¥ 153,172,245    

Negotiable certificates of deposit

     13,069,796          13,792,741    

Call money and bills sold

     1,129,999          1,018,146    

Payables under repurchase agreements

     19,359,965          19,045,789    

Payables under securities lending transactions

     1,580,580          1,388,565    

Commercial paper

     1,866,366          1,992,918    

Trading liabilities

     6,377,968          7,119,225    

Borrowed money

     18,877,990          17,951,970    

Foreign exchanges

     1,216,893          1,859,257    

Short-term bonds

     442,000          433,500    

Bonds

     9,808,107          10,543,167    

Due to trust account

     2,443,873          2,395,740    

Other liabilities

     8,415,621          13,006,313    

Reserve for employee bonuses

     89,894          31,915    

Reserve for executive bonuses

     4,064          —    

Net defined benefit liability

     40,864          40,569    

Reserve for executive retirement benefits

     1,087          923    

Reserve for point service program

     25,000          26,360    

Reserve for reimbursement of deposits

     5,767          4,254    

Reserve for losses on interest repayment

     135,084          126,586    

Reserves under the special laws

     3,902          3,902    

Deferred tax liabilities

     275,570          164,908    

Deferred tax liabilities for land revaluation

     29,193          29,192    

Acceptances and guarantees

     11,722,239          13,098,225    
  

 

 

    

 

 

 

Total liabilities

     245,507,293          257,246,417    
  

 

 

    

 

 

 

Net assets:

     

Capital stock

     2,341,878          2,341,878    

Capital surplus

     693,664          693,809    

Retained earnings

     6,916,468          7,024,916    

Treasury stock

     (13,402)         (13,116)   
  

 

 

    

 

 

 

Total stockholders’ equity

     9,938,608          10,047,488    
  

 

 

    

 

 

 

Net unrealized gains (losses) on other securities

     1,632,080          1,264,690    

Net deferred gains (losses) on hedges

     (80,061)         1,394    

Land revaluation excess

     36,320          36,324    

Foreign currency translation adjustments

     450,143          879,507    

Accumulated remeasurements of defined benefit plans

     121,123          115,611    
  

 

 

    

 

 

 

Total accumulated other comprehensive income

     2,159,606          2,297,528    
  

 

 

    

 

 

 

Stock acquisition rights

     1,475          1,226    

Non-controlling interests

     97,641          99,173    
  

 

 

    

 

 

 

Total net assets

     12,197,331          12,445,416    
  

 

 

    

 

 

 

Total liabilities and net assets

   ¥       257,704,625        ¥       269,691,834    
  

 

 

    

 

 

 

 

- 3 -


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Sumitomo Mitsui Financial Group, Inc.

 

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

    (Consolidated statements of income)

     Millions of yen  
  

 

 

 
Three months ended June 30                  2021                                      2022                

 

      

 

 

 

Ordinary income

   ¥ 951,725           ¥ 1,331,703     

Interest income

     442,051             637,403     

Interest on loans and discounts

     321,811             441,177     

Interest and dividends on securities

     74,476             108,984     

Trust fees

     1,237             1,478     

Fees and commissions

     327,317             336,330     

Trading income

     67,364             4,543     

Other operating income

     34,369             255,237     

Other income

     79,386             96,710     

Ordinary expenses

     664,484             982,028     

Interest expenses

     87,808             205,653     

Interest on deposits

     20,749             63,559     

Fees and commissions payments

     54,712             56,222     

Trading losses

     1,582             90,643     

Other operating expenses

     36,457             85,556     

General and administrative expenses

     437,980             484,021     

Other expenses

     45,943             59,932     
  

 

 

      

 

 

 

Ordinary profit

     287,240             349,674     
  

 

 

      

 

 

 

Extraordinary gains

     16             10     

Extraordinary losses

     2,445             998     
  

 

 

      

 

 

 

Income before income taxes

     284,812             348,686     
  

 

 

      

 

 

 

Income taxes

     79,973             93,962     
  

 

 

      

 

 

 

Profit

     204,838             254,724     
  

 

 

      

 

 

 

Profit attributable to non-controlling interests

     1,595             2,284     
  

 

 

      

 

 

 

Profit attributable to owners of parent

   ¥ 203,243           ¥ 252,439     
  

 

 

      

 

 

 

(Consolidated statements of comprehensive income)

       
     Millions of yen  
  

 

 

 
Three months ended June 30    2021          2022  

 

      

 

 

 

Profit

   ¥ 204,838           ¥           254,724     

Other comprehensive income (losses)

     55,480             136,901     

Net unrealized gains (losses) on other securities

     14,503             (365,102)    

Net deferred gains (losses) on hedges

     1,606             71,230     

Foreign currency translation adjustments

     26,720             393,295     

Remeasurements of defined benefit plans

     (4,329)            (5,525)    

Share of other comprehensive income of affiliates

     16,979             43,003     
  

 

 

      

 

 

 

Total comprehensive income

              260,319             391,625     
  

 

 

      

 

 

 

Comprehensive income attributable to owners of parent

     258,184             390,357     

Comprehensive income attributable to non-controlling interests

     2,135             1,268     

(3) Note on going concern

Not applicable.

(4) Material changes in stockholders’ equity

Not applicable.

 

- 4 -


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Sumitomo Mitsui Financial Group

 

 

Financial results

for the three months

ended June 30, 2022

- Supplementary information -

 

  Table of contents

 

  

1.

  Operating results   Consolidated           Non-consolidated             1  

2.

  Interest spread (domestic)     Non-consolidated             3  

3.

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

4.

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

5.

  Deposits and loans     Non-consolidated             5  

6.

  ROE   Consolidated                       5  

Notes

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

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

3. Capital ratio as of June 30, 2022 will be announced when it is fixed.


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Sumitomo Mitsui Financial Group

 

1. Operating results

 

Consolidated      

(Millions of yen)

 

           
      Three months
ended
June 30, 2022 (A)
  Change
     (A) - (B)     
    Three months
ended
June 30, 2021 (B)
Consolidated gross profit   1     796,917     105,139         691,778 
   

Net interest income

  2     431,750     77,508         354,242 
   

Trust fees

  3     1,478     241         1,237 
   

Net fees and commissions

  4     280,107     7,503         272,604 
   

Net trading income

  5     (86,099)    (151,880)        65,781 
   

Net other operating income

  6     169,681     171,768         (2,087)
General and administrative expenses   7     (484,021)    (46,041)        (437,980)
Equity in gains (losses) of affiliates   8     32,712     19,437       13,275 
 
Consolidated net business profit   9     345,609     78,536         267,073 
 
Total credit cost   10     (32,101)    (21,764)        (10,337)
   

Credit costs

  11     (35,839)    (6,269)        (29,570)
     

Write-off of loans

  12     (26,898)    (732)        (26,166)
        

Provision for reserve for possible loan losses

  13     (2,285)    (2,285)        — 
       

Others

  14     (6,654)    (3,250)        (3,404)
    Gains on reversal of reserve for possible loan losses   15     —    (10,477)        10,477 
   

Recoveries of written-off claims

  16     3,737     (5,019)      8,756 
Gains (losses) on stocks   17     36,835     (3,526)        40,361 
Other income (expenses)   18     (669)    9,188         (9,857)
 
Ordinary profit   19     349,674     62,434         287,240 
 
Extraordinary gains (losses)   20     (987)    1,441         (2,428)
   

Gains (losses) on disposal of fixed assets

  21     (358)    252         (610)
   

Losses on impairment of fixed assets

  22     (629)    1,161         (1,790)
Income before income taxes   23     348,686     63,874         284,812 
Income taxes   24     (93,962)    (13,989)        (79,973)
Profit   25     254,724     49,886         204,838 
Profit attributable to non-controlling interests   26     (2,284)    (689)        (1,595)
 
Profit attributable to owners of parent   27     252,439     49,196         203,243 
 
 

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

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

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

3.   Amounts of Income taxes include Income taxes-deferred.

   

Number of consolidated subsidiaries and affiliates

     
            June 30, 2022           March 31, 2022
        Change    
    Consolidated subsidiaries   28     183           181 
    Equity method affiliates   29     114           112 

 

- 1 -


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Sumitomo Mitsui Financial Group

 

SMBC non-consolidated           (Millions of yen)
               
          Three months
ended
June 30, 2022 (A)  
  Change
     (A) - (B)     
    Three months
ended
  June 30, 2021 (B)  
Gross banking profit   1     471,536     122,781         348,755 
   

Net interest income

  2     329,030     93,084         235,946 
   

Trust fees

  3     512     31         481 
   

Net fees and commissions

  4     103,712     22,690         81,022 
   

Net trading income

  5     (135,071)    (158,619)        23,548 
   

Net other operating income

  6     173,352     165,597         7,755 
             
   

     Gains (losses) on bonds

  7     (33,117)    (43,270)      10,153 
Expenses (excluding non-recurring losses)   8     (221,696)    (13,897)        (207,799)
   

Personnel expenses

  9     (96,375)    (14,128)        (82,247)
   

Non-personnel expenses

  10     (109,987)    991         (110,978)
   

Taxes

  11     (15,333)    (760)        (14,573)
 
Banking profit (before provision for general reserve for possible loan losses)   12     249,839     108,883       140,956 
           
    Gains (losses) on bonds   13     (33,117)    (43,270)      10,153 
   

Core banking profit (12-13)

  14     282,957     152,155         130,802 
     

excluding gains (losses) on cancellation of investment trusts

  15     253,733     141,500         112,233 
 
Provision for general reserve for possible loan losses   16     13,587     13,587         —  
Banking profit   17     263,426     122,470         140,956 
Non-recurring gains (losses)   18     16,213     (17,026)        33,239 
   

Credit costs

  19     (34,522)    (32,097)        (2,425)
   

Gains on reversal of reserve for possible loan losses

  20     —     (11,250)        11,250 
   

Recoveries of written-off claims

  21     17     (5,128)        5,145 
   

Gains (losses) on stocks

  22     29,560     (9,219)        38,779 
        

Gains on sales of stocks

  23     47,527     6,839         40,688 
     

Losses on sales of stocks

  24     (14,029)    (13,711)        (318)
     

Losses on devaluation of stocks

  25     (3,937)    (2,347)        (1,590)
   

Other non-recurring gains (losses)

  26     21,158     40,668         (19,510)
 
Ordinary profit   27     279,640     105,445         174,195 
 
Extraordinary gains (losses)   28     (405)    1,804         (2,209)
   

Gains (losses) on disposal of fixed assets

  29     (220)    279         (499)
   

Losses on impairment of fixed assets

  30     (185)    1,525         (1,710)
Income before income taxes   31     279,234     107,248         171,986 
Income taxes   32     (70,310)    (14,846)        (55,464)
 
Net income   33     208,924     92,403         116,521 
 
           
         
Total credit cost (16+19+20+21)   34     (20,918)    (34,888)        13,970 
   

Provision for general reserve for possible loan losses

  35     13,587     8,942         4,645 
   

Write-off of loans

  36     (3,902)    (3,892)        (10)
   

Provision for specific reserve for possible loan losses

  37     (29,568)    (36,176)        6,608 
   

Losses on sales of delinquent loans

  38     (623)    1,792         (2,415)
   

Provision for loan loss reserve for specific overseas countries

  39     (428)    (426)        (2)
   

Recoveries of written-off claims

  40     17     (5,128)        5,145 
Notes:   1. Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.
  2. Amounts of Income taxes include Income taxes-deferred.

 

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Table of Contents

Sumitomo Mitsui Financial Group

 

2. Interest spread (domestic)

 

SMBC non-consolidated

 

               

(%)

 

     

   Three months   

ended
June 30, 2022 (A)

         

Three months
ended
June 30, 2021 (B)

      Change
     (A) - (B)     
 

Interest earned on loans and bills discounted (a)

 

        

  0.83       (0.02)          0.85 
Interest paid on deposits, etc. (b)       0.00        (0.00)          0.00 
Interest spread (a) - (b)       0.83       (0.02)          0.85 
Reference: After excluding loans to the Japanese government, etc.        

Interest earned on loans and bills discounted (c)

      0.85       (0.01)          0.86 
Interest spread (c) - (b)       0.85       (0.01)          0.86 

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

 

Consolidated

 

       

(Billions of yen)

 

                June 30, 2022                     March 31, 2022  
          Change from    March 31, 2022    
   

Bankrupt and quasi-bankrupt loans

  1     145.0       45.7          99.3 
   

Doubtful loans

  2     532.1       (111.8)         643.9 
   

Substandard loans

  3     395.4       (19.0)         414.4 
       

Past due loans (3 months or more)

  4     15.3       1.8          13.5 
   

Restructured loans

  5     380.1       (20.7)         400.9 
   

Total (A)

  6     1,072.6       (85.0)         1,157.6 
                             
   

Normal assets

  7     115,119.4       9,099.9          106,019.5 
   

Grand total (B)

  8     116,191.9       9,014.9          107,177.0 
             

 

(%)

 

   

NPL ratio (A/B)

  9     0.92       (0.16)         1.08 
           
 

Amount of direct reduction

    299.9       140.7        159.3 

 

SMBC non-consolidated

 

       

(Billions of yen)

 

                June 30, 2022                     March 31, 2022
          Change from    March 31, 2022    
   

Bankrupt and quasi-bankrupt loans

  10     127.3       48.2          79.2 
   

Doubtful loans

  11     408.1       (114.2)         522.3 
   

Substandard loans

  12     182.4       (21.4)         203.8 
       

Past due loans (3 months or more)

  13     4.8       0.6          4.2 
   

Restructured loans

  14     177.6       (22.1)         199.7 
   

Total (A)

  15     717.8       (87.5)         805.3 
                             
   

Normal assets

  16     111,861.8       8,538.3          103,323.5 
   

Grand total (B)

  17     112,579.6       8,450.8          104,128.8 
             

 

(%)

 

   

NPL ratio (A/B)

  18     0.64       (0.13)         0.77 
           
 

Amount of direct reduction

    255.8       140.6        115.2 

 

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Table of Contents

Sumitomo Mitsui Financial Group

 

4. Unrealized gains (losses) on securities

 

Consolidated                    

(Billions of yen)

 

                        June 30, 2022     March 31, 2022
             Balance sheet   amount      Net unrealized    gains (losses)              
 Balance sheet   
 amount   
 
 
     Net unrealized     gains (losses)   
                         
           

 

 Change from  March 31, 2022  

      Gains         Losses    
    Held-to-maturity securities      1       40.9        (0.4)    (0.2)        0.0        0.4        25.7        (0.2) 
    Other securities      2       38,805.7        1,747.7     (529.5)        2,659.5        911.8        38,114.9          2,277.2  
      Stocks      3       3,275.4        1,908.5     (125.1)        1,932.2        23.7        3,403.4          2,033.7  
      Bonds      4       19,664.3        (66.8)    (16.8)        15.6        82.5        19,560.3          (50.1) 
        Japanese government bonds      5       15,779.2        (52.7)    (5.6)        1.2        53.9        15,774.2          (47.1) 
     

Others

     6       15,866.0        (94.0)    (387.6)        711.6        805.6        15,151.2          293.6  
            Foreign bonds      7       13,297.4        (729.6)    (280.8)        33.8        763.4        12,055.6          (448.8) 
    Other money held in trust      8       0.3        —     —            —        0.3          —  
    Total      9       38,846.9        1,747.3     (529.7)        2,659.5        912.2        38,141.0          2,277.0  
        Stocks      10       3,275.4        1,908.5     (125.1)        1,932.2        23.7        3,403.4          2,033.7  
        Bonds      11       19,705.2        (67.2)    (16.9)        15.6        82.8        19,586.1          (50.3) 
            Others      12       15,866.3          (94.0)    (387.6)        711.6        805.6         15,151.5            293.6  
SMBC non-consolidated              

(Billions of yen)

 

                        June 30, 2022     March 31, 2022
             Balance sheet   amount      Net unrealized    gains (losses)              
 Balance sheet   
 amount   
 
 
     Net unrealized     gains (losses)   
                           
           

 

 Change from    March 31, 2022  

      Gains         Losses    
    Held-to-maturity securities      13       22.3      (0.3)     (0.1)       —        0.3        22.3        (0.2) 
    Stocks of subsidiaries and affiliates      14       4,680.4        12.5      (1.9)       12.6        0.1        4,649.7          14.5  
   

Other securities

     15       34,863.4        1,303.1      (479.3)       2,130.0        826.9        34,290.5          1,782.4  
      Stocks      16       3,070.2        1,843.4      (118.6)       1,864.7        21.3        3,202.2          1,961.9  
     

Bonds

     17       19,780.5        (65.8)     (16.4)       15.6        81.4        19,625.2          (49.4) 
        Japanese government bonds      18       15,779.2        (52.7)     (5.6)       1.2        53.9        15,769.2          (47.1) 
     

Others

     19       12,012.7        (474.4)     (344.3)       249.6        724.1        11,463.1          (130.1) 
        Foreign bonds      20       10,041.9        (653.3)     (250.2)       29.0        682.3        8,970.5          (403.1) 
    Total      21       39,566.1        1,315.3      (481.4)       2,142.6        827.3        38,962.5          1,796.6  
        Stocks      22       3,535.5        1,844.0      (118.5)       1,865.4        21.3        3,665.5          1,962.5  
        Bonds      23       19,802.8        (66.2)     (16.5)       15.6        81.8        19,647.5          (49.7) 
            Others      24       16,227.7          (462.6)     (346.3)       261.6        724.2        15,649.5            (116.2) 

 

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.    The net unrealized gains (losses) are measured based on market prices of the securities as of the balance sheet date.
   3.   

Other securities and Other money held in trust are measured at market prices. Unrealized gains (losses) indicate the difference between the acquisition costs (or amortized costs) and the balance sheet amounts.     

Net unrealized gains (losses) on Other securities include gains (losses) which are recognized in the statements of income by applying fair value hedge accounting and accordingly not recorded directly to Net assets. Losses of 17 million yen and gains of 2,122 million yen were recognized in the statements of income for the three months ended June 30, 2022 and for the year ended March 31, 2022 respectively.

 

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Table of Contents

Sumitomo Mitsui Financial Group

 

5. Deposits and loans

 

SMBC non-consolidated             (Billions of yen)
         June 30, 2022                        March 31, 2022      
     

 Change from   

 March 31, 2022   

    

Domestic deposits

  120,119.6    1,416.3       118,703.4
   

Individual

    57,168.7    1,046.6         56,122.1

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

 

Loans and bills discounted

  92,372.5    4,701.2         87,671.3
    Domestic offices (excluding offshore banking accounts)   58,340.6       360.8         57,979.7
    Overseas offices and offshore banking accounts   34,031.9    4,340.4         29,691.6

 

6. ROE

 

        
Consolidated                 (%)
    

    Three months ended     

    June 30, 2022     

            

    Three months ended     

    June 30, 2021     

             Change             
ROE (denominator: Total stockholders’ equity)            10.1                1.6                     8.5

 

Note:

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

 

  ROE

 

 

=  

 

  (Number of days in the period (91 days))   X 100                                
  {(Total stockholders’ equity at the beginning of the period) + (Total stockholders’ equity at the end of the period)} / 2            

 

- 5 -