Sumitomo Mitsui Financial : Earnings Document

Overview of 3Q FY3/2023

January 30, 2023

Copyright © 2023 Sumitomo Mitsui Financial Group. All Rights Reserved.

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; incurrence of significant credit-related costs; our ability to successfully implement our business strategy through our subsidiaries, affiliates and alliance partners; and exposure to new risks as we expand the scope of our 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. 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.

Exchange rates (TTM)

	Dec.21	Mar.22	Dec.22
USD	JPY 115.01	JPY 122.41	JPY 132.71
EUR	JPY 130.51	JPY 136.81	JPY 141.43

Definitions

SMFG	Sumitomo Mitsui Financial Group, Inc.
SMBC	Sumitomo Mitsui Banking Corporation
SMBC Trust	SMBC Trust Bank
SMFL	Sumitomo Mitsui Finance and Leasing
SMBC Nikko	SMBC Nikko Securities
SMCC	Sumitomo Mitsui Card Company
SMBCCF	SMBC Consumer Finance
SMDAM	Sumitomo Mitsui DS Asset Management
SMBCAC	SMBC Aviation Capital
Major local subsidiaries	SMBC Bank International, SMBC Bank EU,
SMBC (China)
Consolidated	SMFG consolidated
Non-consolidated	SMBC non-consolidated
Expenses	Excluding non-recurring losses
(non-consolidated)
Net business profit	Before provision for general reserve for possible
loan losses
Retail Business Unit (RT)	Domestic retail business
Wholesale Business Unit (WS)	Domestic wholesale business
Global Business Unit (GB)	International business
Global Markets Business Unit	Market / Treasury related businesses
(GM)

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Income statement

Progress rate of 1-3Q: Consolidated net business profit 81%, Profit attributable to owners of parent 99% Full-year target remains unchanged considering uncertain global economy.

				1-3Q	YoY	FY3/23
	(JPY bn)		FY3/23	target
1	Consolidated gross profit		2,377.4	+195.4
2	G&A expenses			1,427.7	+97.3
Overhead ratio			60.1%	(0.9)%
3	Equity in gains (losses)	Progress 79.5	+25.4
of affiliates
4	Consolidated	81%	1,029.2	+123.5	1,265
net business profit
5	Total credit cost			111.1	(46.6)	210
6	Gains (losses) on stocks			138.2	+3.5
7	Other income (expenses)		(23.7)	(8.4)
8	Ordinary profit			1,032.6	+165.2	1,120
9	Extraordinary gains (losses)		(2.5)	+2.7
10	Income taxes			256.5	+24.2
11	Profit attributable to	99%	766.0	+141.2	770
owners of parent
12	ROE			10.0%	+1.4%

Consolidated gross profit: increased YoY due to

1. loan growth and related transactions in WS and GB, and
2. strong performance of payment business.

Impact of FX: +119

G&A expenses: maintained the same level YoY, excluding

the impact of FX (+66) and consolidation of Fullerton India (+32).

Equity in gains of affiliates: increased YoY mainly due to gains on change in equity of Bank of East Asia.

Impact of FX: +10

Total credit cost: decreased YoY mainly due to the absence of reserves recorded for large borrowers in 3Q FY3/22.

Gains on stocks: increased YoY due to larger gains on sales of strategic shareholdings (108, YoY +33), while ETF sales decreased.

Impact of consolidating Fullerton India (JPY bn)

.

Consolidated gross profit	+40	Total credit cost	+7
G&A expenses	+32	Profit attributable to	(3)
(incl. goodwill amortization)		owners of parent

Consolidated	+8
net business profit

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(Ref.) Group companies

SMBC		Other major group companies

					1-3Q	YoY	FY3/23
					FY3/23	target
				(JPY bn)
1	Gross banking profit	1,287.9	+156.7
2		o/w Net interest income	871.3	+128.4
3				o/w Gains (losses) on	31.8	(6.9)
			cancellation of investment trusts
4			Domestic	473.3	+46.5
5			Overseas	398.0	+81.9
6		o/w Net fees and commissions	336.5	+60.9
7			Domestic	146.6	+10.8
8			Overseas	189.9	+50.1
9		o/w Net trading income+	78.4	(32.7)
			Net other operating income
10				o/w Gains (lossses) on bonds	(77.9)	(95.7)
11	Expenses	653.4	+23.7
12	Banking profit	634.4	+133.1	840
13	Total credit cost	54.3	(33.5)	80
14	Gains (losses) on stocks	127.9	+45.3
15	Extraordinary gains (losses)	19.9	+5.7
16	Net income	563.7	+219.2	590

				(left : results of 1-3Q FY3/22 / right : YoY)
	SMCC			*1				*2
(JPY bn)		SMBCCF		SMBC Nikko
Gross profit	331.5	+27.1	208.6	+3.9	188.8	(124.4)
Expenses	272.8	+22.4	91.2	+0.9	235.2	(10.6)
Net business	59.0	+5.1	110.4	(4.1)	(46.4)	(113.8)
profit
Net income	26.4	+1.8	55.4	(6.5)	(41.3)	(88.8)
					(Equity method affiliate)
	SMBC Trust		SMDAM				*3
		50%	SMFL		50%
Gross profit	40.8	+6.4	27.1	(1.6)		191.2	+29.1
Expenses	27.3	(6.1)	22.9	+0.5		85.4	+10.7
Net business	13.4	+12.5	4.2	(2.2)		113.4	+20.3
profit
Net income	11.2	+11.4	2.5	(1.4)		61.2	+4.3

*1	YoY includes the impact of group reorganization
*2 Incl. profit from overseas equity-method affiliates of SMBC Nikko (consolidated subsidiaries of SMFG)	Copyright © 2023 Sumitomo Mitsui Financial Group.	4
*3	Managerial accounting basis	All Rights Reserved.

Consolidated net business profit

Remains solid with progress rate of 81.4% (YoY +123.5bn.) Profit decline in SMBC Nikko and the wealth management business was offset by strong growth of other businesses.

Breakdown of YoY

		Global
(JPY bn)	Global	Markets
	+108.1	+11.5
		Others
		(11.9)
	Wholesale
	+29.4
		1,029.2
	Retail
	(13.6)

Business (Gross profit)

					Full-year		1-3Q
（JPY bn）				（JPY bn）	Credit card
400		Wealth management	250	commissions
300						200
						150
200
						100
100						50
0	3/ 20	21	22	23（FY）	0	3/ 20	21	22	23 （FY）

（JPY bn）	Non interest income	Overseas income on
（JPY bn）

905.6

+123.5 (o/w SMBC Nikko(113.8))

1-3Q

1-3Q

FY3/22

FY3/23

600	(domestic wholesale)	500
					400
400					300
200					200
					100
0	3/ 20	21	22	23（FY）	0

loans and deposits

3/ 20

21

22

23 （FY）

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