Sumitomo Mitsui Trust Group (8309) Q1 2027 earnings summary

Executive summary

• Net business profit before credit costs rose 64% year-over-year to ¥122.5bn, reaching 29% of the FY26 target, driven by higher interest rates and robust fee-based businesses.

• Net income increased 56.6% year-over-year to ¥142.2bn, achieving 37% of the annual forecast.

• Ordinary income rose 20.5% year-over-year to ¥786.4bn for the quarter ended June 30, 2026.

• Comprehensive income nearly doubled year-over-year, reaching ¥231.0bn, reflecting strong performance across business lines.

• Gains on sales of strategic shareholdings and strong market-related profits contributed significantly to results.

Financial highlights

• Substantial gross business profit grew by ¥63.9bn year-over-year to ¥286.4bn.

• EPS increased to ¥204.72 from ¥128.10 year-over-year.

• Total assets grew to ¥84.2trn from ¥82.2trn at March 31, 2026.

• Net assets rose to ¥3.70trn, with shareholders’ equity at ¥3.66trn.

• Net gains on stocks surged to ¥61.4bn, mainly from strategic shareholdings sales.

Outlook and guidance

• FY26 net business profit before credit costs forecast at ¥420.0bn; 1Q progress at 29%.

• Net income forecast for FY26 is ¥380.0bn; 1Q progress at 37%.

• Dividend forecast for FY2027 is ¥47.50 per share (post-split), equivalent to ¥190 if not split.

• Share split (4-for-1) planned for August 2026.

• EPS forecast at ¥137.67 post-stock split.