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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 February 2021
Commission File Number 001-34919
SUMITOMO MITSUI FINANCIAL GROUP, INC.
(Translation of registrant’s name into English)
1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: | Form 20-F ☒ | Form 40-F ☐ | ||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): | ☐ | |||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): | ☐ | |||
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. | Yes ☐ | No ☒ | ||
*If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): | 82- |
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF SUMITOMO MITSUI FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-228913) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED, EXCEPT FOR THE STATEMENTS REGARDING OUR EARNINGS FORECAST UNDER THE CAPTION “3. EARNINGS FORECAST ON A CONSOLIDATED BASIS (FOR THE FISCAL YEAR ENDING MARCH 31, 2021).”
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Sumitomo Mitsui Financial Group, Inc. | ||||
By: | /s/ Masahiko Tsutsui | |||
Name: | Masahiko Tsutsui | |||
Title: | General Manager, Financial Accounting Dept. |
Date: February 2, 2021
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February 2, 2021
Sumitomo Mitsui Financial Group, Inc. Consolidated Financial Results for the Nine Months Ended December 31, 2020 <Under Japanese GAAP> |
Head Office: 1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan
Stock Exchange Listings: Tokyo Stock Exchange, Nagoya Stock Exchange, New York Stock Exchange
URL: https://www.smfg.co.jp/english/
President: Jun Ohta
Quarterly Securities Report (Shihanki hokokusho) issuing date: February 12, 2021
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 nine months ended December 31, 2020)
(1) Operating results
(Millions of yen, except per share data and percentages)
Ordinary income | Ordinary profit | Profit attributable to owners of parent | ||||||||||||||||||||||||||
Nine months ended December 31, 2020 | ¥ 2,894,820 | (16.8 | )% | ¥ | 594,881 | (26.7 | )% | ¥ | 433,929 | (29.0 | )% | |||||||||||||||||
Nine months ended December 31, 2019 | 3,479,100 | (4.4 | ) | 811,829 | (12.8 | ) | 610,830 | (4.2 | ) | |||||||||||||||||||
Notes: | 1. | Comprehensive income: | ||||||||||||||||||||||||||
(a) for the nine months ended December 31, 2020: ¥ 1,080,200 million [52.4%] |
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(b) for the nine months ended December 31, 2019: ¥ 708,774 million [40.0%] |
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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.
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Earnings per share | Earnings per share (Diluted) | |||||||||||||||||||||||||||
Nine months ended December 31, 2020 | ¥ 316.70 | ¥ 316.55 | ||||||||||||||||||||||||||
Nine months ended December 31, 2019 | 443.60 | 443.33 | ||||||||||||||||||||||||||
(2) Financial position | ||||||||||||||||||||||||||||
(Millions of yen, except percentages) | ||||||||||||||||||||||||||||
Total assets | Net assets | Net assets ratio | ||||||||||||||||||||||||||
December 31, 2020 | ¥ 233,005,116 | ¥ 11,513,726 | 4.9% | |||||||||||||||||||||||||
March 31, 2020 | 219,863,518 | 10,784,903 | 4.9 | |||||||||||||||||||||||||
Notes: | 1. | Stockholders’ equity: |
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(a) as of December 31, 2020: ¥ 11,443,818 million (b) as of March 31, 2020: ¥ 10,719,969 million |
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2. | Net assets ratio = {(Net assets – stock acquisition rights – non-controlling interests) / total assets} X 100 |
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2. Dividends on common stock
(Yen)
Cash dividends per share | ||||||||||||||||||||
1st quarter | 2nd quarter | 3rd quarter | 4th quarter | Annual | ||||||||||||||||
Fiscal year ended March 31, 2020
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¥ —
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¥ 90.00
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¥ —
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¥ 100.00
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¥ 190.00
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Fiscal year ending March 31, 2021
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| 95.00
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| �� | ||||||||||
Fiscal year ending March 31, 2021 (Forecast)
| 95.00 | 190.00 | ||||||||||||||||||
Note: Dividend forecast remains unchanged. |
3. Earnings forecast on a consolidated basis (for the fiscal year ending March 31, 2021)
(Millions of yen, except per share data and percentage)
Profit attributable to owners of parent | Earnings per share | |||||||||
Fiscal year ending March 31, 2021 | ¥ 400,000 | (43.2)% | ¥ 291.88 |
Notes: | 1. | Earnings forecast remains unchanged. | ||
2. | Percentages 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 December 31, 2020. |
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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) | : Yes | |
(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 stock) |
As of December 31, 2020 | As of March 31, 2020 | |||||||
(a) Number of shares issued (including treasury stocks) | 1,374,040,061 shares | 1,373,171,556 shares | ||||||
(b) Number of treasury stocks | 3,608,963 shares | 3,645,043 shares | ||||||
Nine months ended | Nine months ended | |||||||
(c) Average number of shares issued in the period | 1,370,141,779 shares | 1,376,994,639 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.
Appendix: Financial results for the nine months ended December 31, 2020 supplementary information
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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, 2021 including the period for the nine months ended December 31, 2020. Amounts of Income taxes include Income taxes-deferred.
(2) | Changes in accounting policies due to application of new or revised accounting standards |
Accounting Standard etc. for Fair Value Measurement
The Company applies “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4, 2019) and “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, July 4, 2019) from the beginning of the period for the three months ended June 30, 2020.
Due to the application, the measurement of the fair value of stocks with market price (including foreign stocks, hereinafter the same) in other securities is changed from the fair value method based on their average prices during the final month of fiscal year to the fair value method based on their fiscal year-end market prices. Derivative transactions are carried at fair value reflecting one’s own credit risks and counterparty’s credit risks etc.
As for stocks with market price, in accordance with transitional treatment stipulated in Item 19 of “Accounting standards for fair value measurement” and Item 44-2 of “Accounting standard for financial instrument”, (ASBJ Statement No.10, July 4, 2019) the company has applied new accounting policies since the beginning of the period for the three months ended June 30, 2020. As for fair value of derivative transactions, in accordance with transitional treatment stipulated in Item 20 of Accounting standards for fair value measurement, the cumulative effects are adjusted to “Retained earnings” of the beginning of the period for the nine months ended December 31, 2020, in the case that the new accounting policy is retroactively applied previous to the beginning of the period for the three months ended June 30, 2020.
As a result, “Trading assets” decreased by ¥66,010 million, “Other assets” decreased by ¥29,768 million, “Deferred tax assets” increased by ¥2,306 million, “Trading liabilities” decreased by ¥21,557 million, “Other liabilities” decreased by ¥14,495 million, “Deferred tax liabilities” decreased by ¥15,570 million, and “Retained earnings” decreased by ¥41,849 million at the beginning of the period for the nine months ended December 31, 2020.
(3) | Changes in accounting policies due to reasons other than above (2) |
Changes in Recognition of installment-sales-related income and installment-sales-related expenses
As for recognition of installment-sales-related income and installment-sales-related expenses, Sumitomo Mitsui Finance and Leasing Company, Limited (Hereinafter, “SMFL”), which conducts leasing business, had been applying a method for which installment-sales-related income and installment-sales-related expenses are recognized on a due-date basis over the full period of the installment sales in accordance with “Implementation Guidance on Accounting Standards for Leasing Transactions” (ASBJ Guidance No.16, March 25, 2011). However, from the beginning of the period for the three months ended June 30, 2020, the net amount, which is calculated by deducting installment-sales-related expenses from installment-sales-related income, is recorded as “Interest on deferred payment.”
The change is made to properly reflect the fund transaction under the financial type installment-sales transactions on the consolidated financial statements due to SMFL became an equity method affiliate and other reasons.
These changes in accounting policies are applied retroactively, and therefore the quarterly consolidated financial statements for the nine months ended December 31, 2019 and the consolidated financial statements for the fiscal year ended March 31, 2020 reflect the retroactive application. As a result, comparing before and after the retroactive application, “Ordinary income”, “Ordinary expenses”, and “Other operating expenses” decreased by ¥542,446 million respectively, “Interest income” increased by ¥23,844 million, and “Other operating income” decreased by ¥566,291 million, and there are no effects on “Ordinary profit”, “Income before income taxes”, “Profit” and “Profit attributable to owners of parent” for the nine months ended December 31, 2019. There is also no cumulative effect on “Net assets” at the beginning of the fiscal year ended March 31, 2020.
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Sumitomo Mitsui Financial Group, Inc.
2. Consolidated financial statements
(1) Consolidated balance sheets
Millions of yen | ||||||||
March 31, 2020 | December 31, 2020 | |||||||
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Assets: | ||||||||
Cash and due from banks | ¥ | 61,768,573 | ¥ | 69,296,024 | ||||
Call loans and bills bought | 896,739 | 2,567,080 | ||||||
Receivables under resale agreements | 8,753,816 | 4,403,022 | ||||||
Receivables under securities borrowing transactions | 5,005,103 | 4,991,008 | ||||||
Monetary claims bought | 4,559,429 | 4,590,434 | ||||||
Trading assets | 7,361,253 | 6,764,256 | ||||||
Money held in trust | 353 | 310 | ||||||
Securities | 27,128,751 | 34,118,251 | ||||||
Loans and bills discounted | 82,517,609 | 83,936,025 | ||||||
Foreign exchanges | 2,063,284 | 2,183,342 | ||||||
Lease receivables and investment assets | 219,733 | 222,938 | ||||||
Other assets | 8,298,393 | 8,665,573 | ||||||
Tangible fixed assets | 1,450,323 | 1,471,043 | ||||||
Intangible fixed assets | 753,579 | 749,354 | ||||||
Net defined benefit asset | 230,573 | 381,035 | ||||||
Deferred tax assets | 26,314 | 29,356 | ||||||
Customers’ liabilities for acceptances and guarantees | 9,308,882 | 9,208,815 | ||||||
Reserve for possible loan losses | (479,197) | (572,756) | ||||||
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Total assets | ¥ | 219,863,518 | ¥ | 233,005,116 | ||||
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Liabilities: | ||||||||
Deposits | ¥ | 127,042,217 | ¥ | 139,722,833 | ||||
Negotiable certificates of deposit | 10,180,435 | 10,445,344 | ||||||
Call money and bills sold | 3,740,539 | 1,646,879 | ||||||
Payables under repurchase agreements | 13,237,913 | 12,925,633 | ||||||
Payables under securities lending transactions | 2,385,607 | 2,135,263 | ||||||
Commercial paper | 1,409,249 | 1,810,686 | ||||||
Trading liabilities | 6,084,528 | 5,510,831 | ||||||
Borrowed money | 15,210,894 | 17,530,442 | ||||||
Foreign exchanges | 1,461,308 | 961,256 | ||||||
Short-term bonds | 379,000 | 517,500 | ||||||
Bonds | 9,235,639 | 8,605,083 | ||||||
Due to trust account | 1,811,355 | 2,098,414 | ||||||
Other liabilities | 7,011,967 | 7,571,272 | ||||||
Reserve for employee bonuses | 73,868 | 49,073 | ||||||
Reserve for executive bonuses | 3,362 | — | ||||||
Net defined benefit liability | 35,777 | 36,059 | ||||||
Reserve for executive retirement benefits | 1,270 | 1,050 | ||||||
Reserve for point service program | 26,576 | 26,821 | ||||||
Reserve for reimbursement of deposits | 4,687 | 783 | ||||||
Reserve for losses on interest repayment | 142,890 | 114,682 | ||||||
Reserves under the special laws | 3,145 | 3,663 | ||||||
Deferred tax liabilities | 257,384 | 538,990 | ||||||
Deferred tax liabilities for land revaluation | 30,111 | 30,009 | ||||||
Acceptances and guarantees | 9,308,882 | 9,208,815 | ||||||
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Total liabilities | 209,078,615 | 221,491,390 | ||||||
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Net assets: | ||||||||
Capital stock | 2,339,964 | 2,341,274 | ||||||
Capital surplus | 692,003 | 693,196 | ||||||
Retained earnings | 6,336,311 | 6,412,912 | ||||||
Treasury stock | (13,983) | (13,687) | ||||||
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Total stockholders’ equity | 9,354,296 | 9,433,696 | ||||||
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Net unrealized gains (losses) on other securities | 1,371,407 | 2,014,427 | ||||||
Net deferred gains (losses) on hedges | 82,257 | 80,915 | ||||||
Land revaluation excess | 36,878 | 37,047 | ||||||
Foreign currency translation adjustments | (32,839) | (123,383) | ||||||
Accumulated remeasurements of defined benefit plans | (92,030) | 1,114 | ||||||
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Total accumulated other comprehensive income | 1,365,673 | 2,010,122 | ||||||
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Stock acquisition rights | 2,064 | 1,798 | ||||||
Non-controlling interests | 62,869 | 68,109 | ||||||
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Total net assets | 10,784,903 | 11,513,726 | ||||||
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Total liabilities and net assets | ¥ | 219,863,518 | ¥ | 233,005,116 | ||||
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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 | ||||||||||
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Nine months ended December 31 | 2019 | 2020 | ||||||||
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Ordinary income | ¥ | 3,479,100 | ¥ | 2,894,820 | ||||||
Interest income | 1,915,252 | 1,369,224 | ||||||||
Interest on loans and discounts | 1,319,430 | 1,019,011 | ||||||||
Interest and dividends on securities | 249,199 | 196,888 | ||||||||
Trust fees | 3,396 | 3,385 | ||||||||
Fees and commissions | 961,201 | 947,126 | ||||||||
Trading income | 165,376 | 195,689 | ||||||||
Other operating income | 244,856 | 234,697 | ||||||||
Other income | 189,017 | 144,698 | ||||||||
Ordinary expenses | 2,667,271 | 2,299,939 | ||||||||
Interest expenses | 933,048 | 412,803 | ||||||||
Interest on deposits | 357,417 | 120,076 | ||||||||
Fees and commissions payments | 160,255 | 156,336 | ||||||||
Other operating expenses | 123,307 | 110,596 | ||||||||
General and administrative expenses | 1,299,281 | 1,279,352 | ||||||||
Other expenses | 151,379 | 340,851 | ||||||||
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Ordinary profit | 811,829 | 594,881 | ||||||||
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Extraordinary gains | 23,765 | 824 | ||||||||
Extraordinary losses | 4,163 | 8,633 | ||||||||
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Income before income taxes | 831,431 | 587,071 | ||||||||
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Income taxes | 204,996 | 151,654 | ||||||||
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Profit | 626,434 | 435,417 | ||||||||
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Profit attributable to non-controlling interests | 15,603 | 1,487 | ||||||||
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Profit attributable to owners of parent | ¥ | 610,830 | ¥ | 433,929 | ||||||
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(Consolidated statements of comprehensive income) | ||||||||||
Millions of yen | ||||||||||
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Nine months ended December 31 | 2019 | 2020 | ||||||||
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Profit | ¥ | 626,434 | ¥ | 435,417 | ||||||
Other comprehensive income | 82,340 | 644,783 | ||||||||
Net unrealized gains (losses) on other securities | 121,424 | 641,402 | ||||||||
Net deferred gains (losses) on hedges | 9,380 | (5,587) | ||||||||
Foreign currency translation adjustments | (36,623) | (91,191) | ||||||||
Remeasurements of defined benefit plans | 2,985 | 92,798 | ||||||||
Share of other comprehensive income of affiliates | (14,826) | 7,360 | ||||||||
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Total comprehensive income | 708,774 | 1,080,200 | ||||||||
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Comprehensive income attributable to owners of parent | 691,402 | 1,077,620 | ||||||||
Comprehensive income attributable to non-controlling interests | 17,371 | 2,580 |
Not applicable.
(4) Material changes in stockholders’ equity
Not applicable.
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Sumitomo Mitsui Financial Group
Financial results
for the nine months
ended December 31, 2020
- Supplementary information -
Table of contents |
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1. | Operating results | Consolidated | Non-consolidated | … | 1 | |||||||||
2. | Interest spread (domestic) | Non-consolidated | … | 3 | ||||||||||
3. | Non-performing loans (NPLs) based on the Financial 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 December 31, 2020 will be announced when it is fixed.
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Sumitomo Mitsui Financial Group
Consolidated | (Millions of yen)
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Nine months ended December 31, 2020 (A) | Change (A) - (B) | Nine months ended December 31, 2019 (B) | ||||||||||
Consolidated gross profit | 1 | 2,070,386 | (3,086) | 2,073,472 | ||||||||
Net interest income | 2 | 956,420 | (25,783) | 982,203 | ||||||||
Trust fees | 3 | 3,385 | (11) | 3,396 | ||||||||
Net fees and commissions | 4 | 790,789 | (10,157) | 800,946 | ||||||||
Net trading income | 5 | 195,689 | 30,313 | 165,376 | ||||||||
Net other operating income | 6 | 124,101 | 2,553 | 121,548 | ||||||||
General and administrative expenses | 7 | (1,279,352) | 19,929 | (1,299,281) | ||||||||
Equity in gains (losses) of affiliates | 8 | 19,586 | (28,009) | 47,595 | ||||||||
Consolidated net business profit | 9 | 810,620 | (11,166) | 821,786 | ||||||||
Total credit cost | 10 | (234,765) | (138,307) | (96,458) | ||||||||
Credit costs | 11 | (244,339) | (138,377) | (105,962) | ||||||||
Write-off of loans | 12 | (90,761) | (20,506) | (70,255) | ||||||||
Provision for reserve for possible loan losses | 13 | (139,306) | (107,102) | (32,204) | ||||||||
Others | 14 | (14,271) | (10,769) | (3,502) | ||||||||
Recoveries of written-off claims | 15 | 9,573 | 69 | 9,504 | ||||||||
Gains (losses) on stocks | 16 | 72,712 | (21,139) | 93,851 | ||||||||
Other income (expenses) | 17 | (53,685) | (46,334) | (7,351) | ||||||||
Ordinary profit | 18 | 594,881 | (216,948) | 811,829 | ||||||||
Extraordinary gains (losses) | 19 | (7,809) | (27,410) | 19,601 | ||||||||
Gains (losses) on disposal of fixed assets | 20 | (562) | (951) | 389 | ||||||||
Losses on impairment of fixed assets | 21 | (7,134) | (4,491) | (2,643) | ||||||||
Gains on step acquisitions | 22 | 404 | (21,593) | 21,997 | ||||||||
Income before income taxes | 23 | 587,071 | (244,360) | 831,431 | ||||||||
Income taxes | 24 | (151,654) | 53,342 | (204,996) | ||||||||
Profit | 25 | 435,417 | (191,017) | 626,434 | ||||||||
Profit attributable to non-controlling interests | 26 | (1,487) | 14,116 | (15,603) | ||||||||
Profit attributable to owners of parent | 27 | 433,929 | (176,901) | 610,830 | ||||||||
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. 4. The Company changed the recognition of installment-sales-related income and installment-sales-related expenses from the beginning of this period and the change in accounting policies is applied retroactively for the nine months ended Decmber 31, 2019. As a result, comparing before and after the retroactive application, Net interest income increased by 23,844 million yen, and Net other operating income decreased by 23,844 million yen. | ||||||||||||
Number of consolidated subsidiaries and affiliates | ||||||||||||
�� | December 31, 2020 | March 31, 2020 | ||||||||||
Change | ||||||||||||
Consolidated subsidiaries | 28 | 177 | 3 | 174 | ||||||||
Equity method affiliates | 29 | 95 | (6) | 101 |
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Sumitomo Mitsui Financial Group
SMBC non-consolidated | (Millions of yen) | |||||||||||
Nine months ended December 31, 2020 (A) | Change (A) - (B) | Nine months December 31, 2019 (B) | ||||||||||
Gross banking profit | 1 | 1,075,373 | 8,440 | 1,066,933 | ||||||||
Net interest income | 2 | 643,667 | (8,514) | 652,181 | ||||||||
Trust fees | 3 | 1,366 | (72) | 1,438 | ||||||||
Net fees and commissions | 4 | 228,189 | (7,309) | 235,498 | ||||||||
Net trading income | 5 | 61,102 | (2,104) | 63,206 | ||||||||
Net other operating income | 6 | 141,048 | 26,439 | 114,609 | ||||||||
Gains (losses) on bonds | 7 | 107,412 | 18,350 | 89,062 | ||||||||
Expenses (excluding non-recurring losses) | 8 | (605,464) | 2,783 | (608,247) | ||||||||
Personnel expenses | 9 | (240,178) | 1,974 | (242,152) | ||||||||
Non-personnel expenses | 10 | (323,139) | 4,744 | (327,883) | ||||||||
Taxes | 11 | (42,146) | (3,935) | (38,211) | ||||||||
Banking profit (before provision for general reserve for possible loan losses) | 12 | 469,909 | 11,223 | 458,686 | ||||||||
Gains (losses) on bonds | 13 | 107,412 | 18,350 | 89,062 | ||||||||
Core banking profit (12-13) | 14 | 362,496 | (7,127) | 369,623 | ||||||||
excluding gains (losses) on cancellation of investment trusts | 15 | 341,238 | (4,163) | 345,401 | ||||||||
Provision for general reserve for possible loan losses | 16 | (102,468) | (101,626) | (842) | ||||||||
Banking profit | 17 | 367,441 | (90,402) | 457,843 | ||||||||
Non-recurring gains (losses) | 18 | (42,252) | (8,962) | (33,290) | ||||||||
Credit costs | 19 | (37,747) | (27,073) | (10,674) | ||||||||
Gains on reversal of reserve for possible loan losses | 20 | — | — | — | ||||||||
Recoveries of written-off claims | 21 | 20 | (1) | 21 | ||||||||
Gains (losses) on stocks | 22 | 47,462 | (48,290) | 95,752 | ||||||||
Gains on sales of stocks | 23 | 77,170 | (43,606) | 120,776 | ||||||||
Losses on sales of stocks | 24 | (3,922) | 15,004 | (18,926) | ||||||||
Losses on devaluation of stocks | 25 | (25,784) | (19,688) | (6,096) | ||||||||
Other non-recurring gains (losses) | 26 | (51,988) | 66,401 | (118,389) | ||||||||
Ordinary profit | 27 | 325,188 | (99,365) | 424,553 | ||||||||
Extraordinary gains (losses) | 28 | (4,427) | (2,357) | (2,070) | ||||||||
Gains (losses) on disposal of fixed assets | 29 | (144) | (365) | 221 | ||||||||
Losses on impairment of fixed assets | 30 | (4,283) | (1,991) | (2,292) | ||||||||
Income before income taxes | 31 | 320,761 | (101,722) | 422,483 | ||||||||
Income taxes | 32 | (93,222) | 49,197 | (142,419) | ||||||||
Net income | 33 | 227,538 | (52,525) | 280,063 | ||||||||
Total credit cost (16+19+20+21) | 34 | (140,194) | (128,699) | (11,495) | ||||||||
Provision for general reserve for possible loan losses | 35 | (102,468) | (101,626) | (842) | ||||||||
Write-off of loans | 36 | (17,289) | (9,755) | (7,534) | ||||||||
Provision for specific reserve for possible loan losses | 37 | (11,948) | (12,138) | 190 | ||||||||
Losses on sales of delinquent loans | 38 | (8,508) | (5,178) | (3,330) | ||||||||
Provision for loan loss reserve for specific overseas countries | 39 | (0) | (0) | (0) | ||||||||
Recoveries of written-off claims | 40 | 20 | (1) | 21 |
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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Sumitomo Mitsui Financial Group
SMBC non-consolidated
|
| (%)
|
| |||||||||||||||||||||
Nine months ended | | Nine months ended December 31, 2019 (B) | ||||||||||||||||||||||
December 31, 2020 (A) | | Change (A) - (B) | ||||||||||||||||||||||
| April 1 - June 30 | | July 1 - September 30 | | October 1 - December 31 | |||||||||||||||||||
Interest earned on loans and bills discounted (a) | 0.84 | 0.82 | 0.84 | 0.83 | (0.08) | 0.91 | ||||||||||||||||||
Interest paid on deposits, etc. (b) | 0.00 | 0.00 | 0.00 | 0.00 | (0.00) | 0.00 | ||||||||||||||||||
Interest spread (a) - (b) | 0.84 | 0.82 | 0.84 | 0.83 | (0.08) | 0.91 | ||||||||||||||||||
Reference: After excluding loans to the Japanese government, etc. |
| |||||||||||||||||||||||
Interest earned on loans and bills discounted (c) | 0.87 | 0.85 | 0.87 | 0.86 | (0.07) | 0.93 | ||||||||||||||||||
Interest spread (c) - (b) | 0.87 | 0.85 | 0.87 | 0.86 | (0.07) | 0.93 |
3. Non-performing loans (NPLs) based on the Financial Reconstruction Act
Consolidated
| (Billions of yen)
| |||||||||
December 31, 2020 | March 31, 2020 | |||||||||
Change from March 31, 2020 | ||||||||||
Bankrupt and quasi-bankrupt assets | 1 | 128.5 | 40.6 | 87.9 | ||||||
Doubtful assets | 2 | 353.0 | 26.2 | 326.9 | ||||||
Substandard loans | 3 | 276.2 | 40.7 | 235.5 | ||||||
Total (A) | 4 | 757.7 | 107.5 | 650.3 | ||||||
Normal assets | 5 | 96,578.7 | 1,305.5 | 95,273.2 | ||||||
Grand total (B) | 6 | 97,336.4 | 1,412.9 | 95,923.5 | ||||||
(%)
| ||||||||||
NPL ratio (A/B) | 7 | 0.78 | 0.10 | 0.68 | ||||||
Amount of direct reduction | 160.1 | 17.3 | 142.8 | |||||||
SMBC non-consolidated
| (Billions of yen)
| |||||||||
December 31, 2020 | March 31, 2020 | |||||||||
Change from March 31, 2020 | ||||||||||
Bankrupt and quasi-bankrupt assets | 8 | 113.4 | 40.4 | 73.0 | ||||||
Doubtful assets | 9 | 270.9 | 10.0 | 260.8 | ||||||
Substandard loans | 10 | 104.1 | 9.3 | 94.8 | ||||||
Total (A) | 11 | 488.3 | 59.7 | 428.6 | ||||||
Normal assets | 12 | 93,742.0 | 944.6 | 92,797.4 | ||||||
Grand total (B) | 13 | 94,230.3 | 1,004.3 | 93,226.0 | ||||||
(%)
| ||||||||||
NPL ratio (A/B) | 14 | 0.52 | 0.06 | 0.46 | ||||||
Amount of direct reduction | 109.2 | 13.8 | 95.4 | |||||||
Note: NPLs based on the Financial Reconstruction Act include loans, acceptances and guarantees, suspense payments, and other credit-type assets. |
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Sumitomo Mitsui Financial Group
4. Unrealized gains (losses) on securities
Consolidated | (Billions of yen)
| |||||||||||||||||||||||||||
December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
Balance sheet amount | Net unrealized gains (losses) | Balance sheet amount | Net unrealized gains (losses) | |||||||||||||||||||||||||
Change from March 31, 2020
| Gains | Losses | ||||||||||||||||||||||||||
Held-to-maturity securities | 1 | 22.3 | (0.0) | (0.2) | 0.0 | 0.0 | 282.4 | 0.1 | ||||||||||||||||||||
Other securities | 2 | 34,022.9 | 2,827.5 | 935.2 | 2,913.4 | 85.9 | 26,649.2 | 1,892.3 | ||||||||||||||||||||
Stocks | 3 | 3,485.4 | 2,038.2 | 768.6 | 2,082.8 | 44.6 | 2,736.8 | 1,269.6 | ||||||||||||||||||||
Bonds | 4 | 17,154.1 | 19.8 | (1.7) | 34.4 | 14.6 | 10,067.4 | 21.5 | ||||||||||||||||||||
Japanese government bonds | 5 | 13,843.1 | (6.6) | 0.5 | 4.1 | 10.7 | 7,087.9 | (7.1) | ||||||||||||||||||||
Others | 6 | 13,383.4 | 769.5 | 168.2 | 796.2 | 26.7 | 13,845.0 | 601.2 | ||||||||||||||||||||
Foreign bonds | 7 | 10,910.0 | 153.8 | (101.9) | 178.6 | 24.8 | 11,649.5 | 255.7 | ||||||||||||||||||||
Other money held in trust | 8 | 0.3 | — | — | — | — | 0.4 | — | ||||||||||||||||||||
Total | 9 | 34,045.5 | 2,827.5 | 935.0 | 2,913.4 | 86.0 | 26,931.9 | 1,892.5 | ||||||||||||||||||||
Stocks | 10 | 3,485.4 | 2,038.2 | 768.6 | 2,082.8 | 44.6 | 2,736.8 | 1,269.6 | ||||||||||||||||||||
Bonds | 11 | 17,176.4 | 19.8 | (1.8) | 34.4 | 14.6 | 10,349.8 | 21.7 | ||||||||||||||||||||
Others | 12 | 13,383.7 | 769.5 | 168.2 | 796.2 | 26.7 | 13,845.4 | 601.2 | ||||||||||||||||||||
SMBC non-consolidated | (Billions of yen)
| |||||||||||||||||||||||||||
December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||
Balance sheet amount | Net unrealized gains (losses) | Balance sheet amount | Net unrealized gains (losses) | |||||||||||||||||||||||||
Change from March 31, 2020
| Gains | Losses | ||||||||||||||||||||||||||
Held-to-maturity securities | 13 | 22.3 | (0.0) | 0.1 | 0.0 | 0.0 | 22.3 | (0.1) | ||||||||||||||||||||
Stocks of subsidiaries and affiliates | 14 | 4,236.2 | (130.2) | (3.3) | 1.0 | 131.2 | 4,182.0 | (126.8) | ||||||||||||||||||||
Other securities | 15 | 30,660.2 | 2,304.7 | 848.5 | 2,386.6 | 82.0 | 23,541.4 | 1,456.2 | ||||||||||||||||||||
Stocks | 16 | 3,311.3 | 1,969.3 | 758.5 | 2,011.9 | 42.6 | 2,576.6 | 1,210.7 | ||||||||||||||||||||
Bonds | 17 | 17,068.0 | 19.7 | (1.7) | 34.3 | 14.6 | 9,978.4 | 21.4 | ||||||||||||||||||||
Japanese government bonds | 18 | 13,838.1 | (6.6) | 0.5 | 4.1 | 10.7 | 7,083.9 | (7.1) | ||||||||||||||||||||
Others | 19 | 10,281.0 | 315.7 | 91.7 | 340.5 | 24.8 | 10,986.4 | 224.0 | ||||||||||||||||||||
Foreign bonds | 20 | 8,322.5 | 99.5 | (83.8) | 122.8 | 23.2 | 9,253.1 | 183.4 | ||||||||||||||||||||
Total | 21 | 34,918.7 | 2,174.4 | 845.2 | 2,387.7 | 213.2 | 27,745.8 | 1,329.2 | ||||||||||||||||||||
Stocks | 22 | 3,774.5 | 1,970.3 | 759.2 | 2,012.9 | 42.6 | 3,057.1 | 1,211.2 | ||||||||||||||||||||
Bonds | 23 | 17,090.3 | 19.7 | (1.7) | 34.3 | 14.6 | 10,000.7 | 21.4 | ||||||||||||||||||||
Others | 24 | 14,053.9 | 184.4 | 87.7 | 340.5 | 156.0 | 14,688.0 | 96.7 |
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 nine months ended December 31, 2020 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. Losses of 4 billion yen and losses of 26.4 billion yen were recognized in the statements of income for the nine months ended December 31, 2020 and for the year ended March 31, 2020, respectively. |
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Table of Contents
Sumitomo Mitsui Financial Group
SMBC non-consolidated | (Billions of yen) | |||||||
December 31, 2020 | March 31, 2020 | |||||||
Change from March 31, 2020 | ||||||||
Domestic deposits | 111,149.3 | 8,965.3 | 102,184.0 | |||||
Individual | 53,163.3 | 4,110.4 | 49,053.0 | |||||
Note : The figures above exclude negotiable certificates of deposit and Japan offshore banking accounts.
| ||||||||
Loans and bills discounted | 80,835.0 | 647.6 | 80,187.4 | |||||
Domestic offices (excluding offshore banking accounts) | 57,151.8 | 2,538.4 | 54,613.3 | |||||
Overseas offices and offshore banking accounts | 23,683.2 | (1,890.8) | 25,574.1 | |||||
| ||||||||
Consolidated | (%) | |||||||
Nine months ended December 31, 2020 | Nine months ended December 31, 2019 | |||||||
Change | ||||||||
ROE (denominator: Total stockholders’ equity) | 6.1 | (2.8) | 8.9 |
Note : | (Profit attributable to owners of parent) X (Number of days in a year (365 days)) / | |||||||||||||||||
ROE |
=
| (Number of days in the period (275 days)) | 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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