Sumitomo Mitsui Financial Group (8316) investor relations material

Executive summary

• Achieved record-high net income of JPY 1.58tn in FY3/26, surpassing targets, with strong domestic core business performance and improved ROE above 10%.

• Net business profit rose by JPY 611.6bn YoY to JPY 2.33tn, driven by higher domestic net interest and fee income, and strong performances in wealth management, payments, and consumer finance.

• Set medium- to long-term ROTE target of 15%, with FY3/29 milestones of 13% ROTE and JPY 2tn net income.

• Committed to annual dividend increases, a stock split, and enhanced shareholder benefit programs to attract long-term investors.

Financial highlights

• Gross profit rose to JPY 4.84tn (+JPY 717.9bn YoY), driven by higher net interest income and fee income.

• Ordinary profit reached JPY 2.3tn (+JPY 583.9bn YoY), despite higher credit costs and losses from the sale of a US banking subsidiary.

• Profit attributable to owners of parent was JPY 1.58tn, up 34.4% YoY.

• EPS increased to JPY 412 (+JPY 110 YoY).

• Dividend per share (DPS) set at JPY 180 for FY3/27 (+JPY 23 YoY), with a 40% payout ratio and up to JPY 180bn in share buybacks.

Outlook and guidance

• Targeting net income of JPY 1.7tn for FY3/27, maintaining flexibility to address downside risks, especially from the Middle East.

• Medium-term goal of 15% ROTE, with FY3/29 targets of 13% ROTE and JPY 2tn net income.

• Forecasted EPS for the next fiscal year is JPY 223.75, reflecting the impact of a planned stock split and share repurchase.

• Continued focus on cost discipline, RORA improvement, and leveraging technology as a management pillar.