Fixed Income Investor Presentation
May 2021
Unless otherwise indicated, the financial figures for SMFG and SMBC included in this presentation are prepared in accordance with generally accepted accounting principles in Japan, or Japanese GAAP
Copyright © 2021 Sumitomo Mitsui Financial Group. All Rights Reserved.
This document contains "forward-looking statements" (as | Definitions | ||||||||||
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 | ||||||||
SMFG | Sumitomo Mitsui Financial Group, Inc. | ||||||||||
condition and results of operations. In many cases but not all, | |||||||||||
these statements | contain | words | such | as | "anticipate," | SMBC | Sumitomo Mitsui Banking Corporation | ||||
"believe," "estimate," "expect," "intend," "may," "plan," | |||||||||||
"probability," "risk," "project," "should," "seek," "target," "will" | SMBC Trust | SMBC Trust Bank | |||||||||
and similar expressions. Such forward-looking statements are | |||||||||||
not guarantees of future performance and involve risks and | SMFL | Sumitomo Mitsui Finance and Leasing | |||||||||
uncertainties, and actual results may differ from those | |||||||||||
expressed in or implied by such forward-looking statements | SMBC Nikko | SMBC Nikko Securities | |||||||||
contained or deemed to be contained herein. The risks and | |||||||||||
uncertainties which may affect future performance include: | SMCC | Sumitomo Mitsui Card Company | |||||||||
the COVID-19 pandemic and collateral events; deterioration | |||||||||||
of Japanese and global economic conditions and financial | SMBCCF | SMBC Consumer Finance | |||||||||
markets; declines in the value of our securities portfolio; | |||||||||||
incurrence of significant credit-related costs; our ability to | SMDAM | Sumitomo Mitsui DS Asset Management | |||||||||
successfully implement our business strategy through our | |||||||||||
SMBCAC | SMBC Aviation Capital | ||||||||||
subsidiaries, affiliates and alliance partners; and exposure to | |||||||||||
new risks as we expand the scope of our business. Given | |||||||||||
Major local subsidiaries | SMBC Bank International, SMBC Bank EU, | ||||||||||
these and other risks and uncertainties, you should not place | |||||||||||
SMBC (China) | |||||||||||
undue reliance on forward-looking statements, which speak | |||||||||||
only as of the date of this | document. We | undertake no | Consolidated | SMFG consolidated | |||||||
obligation to update or revise any forward-looking statements. | |||||||||||
Please refer to our most recent disclosure documents such | Non-consolidated | SMBC non-consolidated | |||||||||
as our annual report on Form 20-F and other documents | |||||||||||
Expenses | Expenses excluding non-recurring losses | ||||||||||
submitted to the U.S. Securities and Exchange Commission, | |||||||||||
(non-consolidated) | |||||||||||
as well as our earnings press releases, for a more detailed | Net business profit | Profit before provision for general reserve for | |||||||||
description of the risks and uncertainties that may affect our | |||||||||||
possible loan losses | |||||||||||
financial condition and our operating results, and investors' | |||||||||||
decisions. | Retail Business Unit (RT) | Domestic retail business | |||||||||
Wholesale Business Unit (WS) | Domestic wholesale business | ||||||||||
Exchange rates (TTM) | |||||||||||
Global Business Unit (GB) | International business | ||||||||||
Mar. 20 | Mar. 21 | ||||||||||
Global Markets Business Unit | Market / Treasury related businesses | ||||||||||
(GM) | |||||||||||
USD | JPY 108.81 | JPY 110.71 | |||||||||
OCI | Net unrealized gains on other securities | ||||||||||
EUR | JPY 119.52 | JPY 129.75 | |||||||||
Copyright © 2021 Sumitomo Mitsui Financial Group. | 1 |
All Rights Reserved. |
Agenda
Impact of
COVID-19
Results
Funding &
Capital
- Summary
- Business line breakdown
- Credit cost
- Aircraft leasing
- Key credit messages
- Financial results
- Balance sheet and loan balance
- Loans
- Asset quality
- Foreign currency assets and funding
- Foreign currency issuance and redemptions
- TLAC
- Capital strategy
- Credit ratings of selected G-SIBs
Copyright © 2021 Sumitomo Mitsui Financial Group. | 2 |
All Rights Reserved. |
Impact of COVID-19 (1) Summary
Negative impact of COVID-19 was smaller than our original forecast in FY3/21.
It is expected to be smaller YoY in FY3/22, while the uncertain environment continues.
Profit attributable to
owners of parent
(JPY bn)
800 COVID-19
Impact
600
400
513
200
0
FY3/21 | FY3/21 | FY3/22 |
target | target |
Consolidated
net business profit
Smaller COVID-19
1100 impact than expected
10001
1,084
900
800
FY3/21 | FY3/21 FY3/22 |
target | target |
Higher profits in Global
1 Markets Business Unit
RWA
(JPY tn)
95
90
COVID-19
8592
80
FY3/21 | FY3/21 | FY3/22 |
target | target |
Credit cost
Smaller COVID-19 | ||||||||||
500 | impact than | |||||||||
expected | ||||||||||
400 | ||||||||||
300 | 361 | |||||||||
200 | ||||||||||
FY3/21 | FY3/21 | FY3/22 | ||||||||
target | target |
CET1 ratio (post-Basel III exc. OCI)
Capital Management
10% | Result | Target | ||
10% | ||||
9% | ||||
8% | ||||
FY3/21 | Mid-long | Under |
term | COVID-19 | |
Copyright © 2021 Sumitomo Mitsui Financial Group. | 3 |
All Rights Reserved. |
Impact of COVID-19 (2) Business line breakdown
Many of our businesses have been recovering since 2H of FY3/21.
Monthly average net business profit *1 in RT/WS/GB increased from JPY 73 bn in 1H to JPY 87 bn in 2H.
FY3/20 FY3/21
(JPY bn)
30
15
0
Overseas securities | (JPY bn) | Non-interest income*2 | (IDR tn) | BTPN | (JPY bn) | Equity in gains | ||
(Domestic WS) | (Gross profit) | of affiliates | ||||||
50 | 4,000 | |||||||
30 | ||||||||
25 | 2,000 | 15 | ||
1Q | 2Q | 3Q | 4Q | 0 | 0 | 0 | ||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | |||||||||||||||||||||||
(JPY bn) Wealth management | (JPY bn) | Credit card | (JPY tn) | Card loan balance | |||||||||||||||||||||||||||
commissions | (SMBCCF) | ||||||||||||||||||||||||||||||
100 | 50 | 1.3 | |||||||||||||||||||||||||||||
50 | 25 | 1.2 | |||||||||||||||||||||||||||||
1.1 | |||||||||||||||||||||||||||||||
0 | 0 | ||||||||||||||||||||||||||||||
1.0 | |||||||||||||||||||||||||||||||
1Q 2Q 3Q 4Q | 1Q 2Q 3Q 4Q | Jun Sep Dec Mar | |||||||||||||||||||||||||||||
Positive | Impact of COVID-19 | Negative |
*1 | Calculated with the FX rates assumption in medium-term management plan (USD 1=JPY 105) | Copyright © 2021 Sumitomo Mitsui Financial Group. | 4 |
*2 | Syndicated loans, structured finance, real estate finance and securities business | All Rights Reserved. |
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Sumitomo Mitsui Financial Group Inc. published this content on 31 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 May 2021 08:15:06 UTC.