REG-Sumitomo Mitsui Bnkg 1st Quarter Results
* Reuters is not responsible for the content in this press release.
TOKYO--(Business Wire)--
Sumitomo Mitsui Financial Group, Inc. (SMFG)
Consolidated Financial Results for the Three Months ended June 30, 2009
Head Office: 1-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo, Japan
Stock Exchange Listings: Tokyo Stock Exchange, Osaka Securities Exchange, Nagoya Stock Exchange (code: 8316)
URL: http://www.smfg.co.jp
President: Teisuke Kitayama
Amounts less than one million yen have been omitted.
1. Financial Results (for the three months ended June 30, 2009)
(1) Operating Results
(Millions of yen, except per share data and percentages)
Ordinary Income Ordinary Profit Net Income
Three Months ended June 30, 2009 ¥ 764,985 (19.6) % ¥ 115,248 56.5 % ¥ 72,773 25.3 %
Three Months ended June 30, 2008 951,902 - 73,635 - 58,096 -
Net Income Net Income
Per Share Per Share (Diluted)
Three Months ended June 30, 2009 ¥ 86.09 ¥ 82.78
Three Months ended June 30, 2008 7,523.83 7,223.18
(2) Financial Position
(Millions of yen, except per share data and percentages)
Total Assets Net Assets Net Assets Ratio Net Assets per Share
June 30, 2009 ¥ 116,894,603 ¥ 5,631,930 3.3 % ¥ 3,527.60
March 31, 2009 119,637,224 4,611,764 2.1 2,790.27
Notes: 1. Stockholders` equity - as of June 30, 2009: ¥3,808,655 million - as of
March 31, 2009: ¥2,469,788 million
2. Net assets ratio = {(Net assets - Stock acquisition rights - Minority
interests) / Total assets} X 100
2. Dividends on Common Stock per Share
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Fiscal Year ended March 31, 2009 ¥ - ¥ 7,000 ¥ - ¥ 20 ¥ -
Fiscal Year ending March 31, 2010 -
Fiscal Year ending March 31, 2010 (Forecast) 45 - 45 90
Notes: 1. Dividend forecast remains unchanged.
2. Dividends on unlisted preferred stock are reported below.
3. Earnings Forecast (for the fiscal year ending March 31, 2010)
(Millions of yen, except per share data and percentages)
Ordinary Ordinary Net Net Income
Income Profit Income Per Share
Six Months ending September 30, 2009 ¥1,650,000 (9.2) % ¥ 200,000 4.7 % ¥ 90,000 8.1 % ¥ 91.71
Fiscal Year ending March 31, 2010 3,400,000 (4.3) 510,000 - 220,000 - 217.60
Note s: 1. Earnings forecast remains unchanged.
2. Percentages shown in Ordinary Income, Ordinary Profit and Net Income are the
increase (decrease) from the results of the previous fiscal year.
4. Other Information
(1) There was no change in material consolidated subsidiaries in the three
months ended June 30, 2009.
(2) Simplified accounting methods and particular accounting methods for
preparing quarterly consolidated financial statements were adopted. For more
details, please refer below.
(3) There was no change in accounting principles, procedures and presentation
when preparing quarterly consolidated financial statements.
(4) Number of Shares Issued (common stock)
As of June 30, 2009 As of March 31, 2009
(a) Number of shares issued (including treasury shares) 1,008,780,477 shares 789,080,477 shares
(b) Number of treasury shares 17,044,266 shares 17,028,466 shares
Three Months ended Three Months ended
June 30, 2009 June 30, 2008
(c) Average number of shares issued in the period 845,274,702 shares 7,721,717 shares
[Dividends Information]
Dividends on Preferred Stock per Share
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Preferred stock Fiscal Year ended March 31, 2009 ¥ - ¥67,500 ¥ - ¥67,500 ¥135,000
(Type 4)
Fiscal Year ending March 31, 2010 - 135,000
Fiscal Year ending March 31, 2010 (Forecast) 67,500 - 67,500
Preferred stock Fiscal Year ended March 31, 2009 - 44,250 - 44,250 88,500
(Type 6)
Fiscal Year ending March 31, 2010 - 88,500
Fiscal Year ending March 31, 2010 (Forecast) 44,250 - 44,250
Calculation for Index
- Forecasted Net Income per Share:
Forecasted net income - Forecasted preferred stock dividends
Forecasted average number of common stocks during the period (excluding treasury stock)
(Note) The number of shares of common stock increased 8,931,300 due to the
issuance of new shares by way of third party allotment on July 27, 2009.
Accordingly, the average number of common shares used to calculate "Forecasted
Net Income per Share" was 922,971,106 shares for the six months ending September
30, 2009 and 961,819,308 shares for the fiscal year ending March 31, 2010.
[Retroactive Adjustment for Stock Split]
SMFG implemented a 100 for 1 stock split of common stock on January 4, 2009. If
the stock split had been implemented at the beginning of the fiscal year,
dividends on common stock per share and other per share information would be as
follows.
(Yen)
Dividends on Common Stock per Share
Record Date 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual
Fiscal Year ended March 31, 2009 ¥ - ¥ 70 ¥ - ¥ 20 ¥ 90
Net Income per Share Net Income per Share
(Diluted)
Three months ended June 30, 2008 ¥ 75.24 ¥ 72.23
This document contains certain forward-looking statements. Such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and actual results may materially differ from those contained in
the forward-looking statements as a result of various factors.
The following items are among the factors that could cause actual results to
differ materially from the forward-looking statements in this document: business
conditions in the banking industry, the regulatory environment, new legislation,
competition with other financial services companies, changing technology and
evolving banking industry standards and similar matters.
Sumitomo Mitsui Financial Group ("SMFG") reports the financial results for the
three months ended June 30, 2009.
1. Operating Results
In the 1st quarter of fiscal year 2009 (FY2009), SMFG`s consolidated gross
profit increased ¥64.2 billion year on year to ¥536.2 billion as a result of
recording of an increase in gross profit by Sumitomo Mitsui Banking Corporation
("SMBC"), a major consolidated subsidiary of SMFG, mainly due to an increase in
gains on bond-related transactions by quickly responding to fluctuation in
market interest rates.
Consolidated general and administrative expenses decreased ¥7.2 billion year on
year to ¥268.0 billion attributable mainly to the aggressive efforts to reduce
expenses under the severe business environment.
Consolidated credit cost remained almost unchanged from the previous year.
Though SMBC decreased credit cost by ¥14.5 billion year on year due mainly to a
reversal of provision for loan losses, an overseas subsidiary incurred loan
losses.
As a result of the factors mentioned above, on a consolidated basis, SMFG
recorded ordinary profit of ¥115.2 billion, a year-on-year increase of ¥41.6
billion, and net income of ¥72.8 billion, a year-on-year increase of ¥14.7
billion.
(Billions of Yen)
Three months Change from the Fiscal Year ended
ended June 30, three months ended March 31, 2009
2009 June 30, 2008 (reference)
Gross profit ¥ 536.2 ¥ 64.2 ¥ 2,165.9
General and administrative expenses (268.0 ) 7.2 (1,063.4 )
Total credit cost (119.8 ) (5.8 ) (767.8 )
Gains (losses) on stocks (2.5 ) 2.6 (183.7 )
Ordinary profit 115.2 41.6 45.3
Net income (loss) 72.8 14.7 (373.5 )
Gross banking profit ¥ 371.0 ¥ 62.7 ¥ 1,524.9
Expenses (excluding non-recurring losses) (175.6 ) 4.2 (701.5 )
Banking profit (*) 195.4 66.9 823.4
Net gains (losses) on bonds 40.5 70.8 26.1
Total credit cost (69.3 ) 14.5 (550.1 )
Gains (losses) on stocks (1.2 ) (0.6 ) (220.4 )
Ordinary profit 109.3 67.5 36.1
Net income (loss) 107.9 51.7 (301.1 )
(*) Banking profit (before provision for general reserve for possible loan
losses)
2. Financial Position
On a consolidated basis, SMFG`s total assets as of June 30, 2009 decreased
¥2,742.7 billion to ¥116,894.5 billion, compared with March 31, 2009. Net assets
increased ¥1,020.1 billion to ¥5,631.8 billion. Stockholders` equity increased
¥883.3 billion to ¥3,482.5 billion as a result of the public offering in June
and recording of net income.
On a consolidated basis, deposits increased ¥2,260.0 billion to ¥77,829.5
billion from March 31, 2009. Loans and bills discounted also increased ¥224.3
billion to ¥65,359.6 billion. Of this amount, SMBC, on a non-consolidated basis,
accounted for ¥59,917.3 billion, a decrease of ¥324.0 billion. Though SMBC
recorded an increase in its domestic loan balance, it recorded a decrease in its
overseas loan balance mainly because of a cautious stance on asset operations
overseas and the transfer of most of its branches in China to a newly
established subsidiary.
On a consolidated basis, problem assets (non-performing loans as defined under
the Financial Reconstruction Law) increased ¥120.1 billion to ¥1,755.3 billion
from March 31, 2009. Problem asset ratio was 2.42%.
3. Earnings Forecasts
Consolidated net income for the first quarter of FY2009 was approximately 80%
and 33% of the figures forecasted in May for the first half and the full year of
FY2009, respectively, due mainly to the favorable performance of SMBC. However,
SMFG does not revise the earnings forecast for the first half and the full year
of FY2009 because of the expected continuation of the severe business
environment.
4. Other
Simplified accounting methods and Particular accounting methods for preparing
quarterly consolidated financial statements
(1) Depreciation
Depreciation cost on tangible fixed assets which are depreciated using the
straight-line method has been calculated by proportionally allocating the
estimated annual cost to the 1st quarter.
(2) Tax Effect Accounting
On the premise that transfer to and from the reserve for losses on overseas
investments will be conducted through appropriation of retained earnings at this
fiscal year-end of consolidated domestic subsidiaries, current and deferred
income taxes are recorded in the amount corresponding to the 1st quarter.
5. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Millions of yen)
June 30, 2009 March 31, 2009
(condensed)
Cash and due from banks ¥ 4,584,065 ¥ 5,241,694
Call loans and bills bought 570,844 633,655
Receivables under resale agreements 24,021 10,487
Receivables under securities borrowing transactions 2,131,005 1,820,228
Monetary claims bought 954,631 1,024,050
Trading assets 4,665,037 4,924,961
Money held in trust 9,369 8,985
Securities 27,264,071 28,698,164
Loans and bills discounted 65,359,642 65,135,319
Foreign exchanges 886,798 885,082
Lease receivables and investment assets 1,969,252 1,968,347
Other assets 3,695,399 4,257,251
Tangible fixed assets 1,022,889 1,008,801
Intangible fixed assets 359,015 361,884
Deferred tax assets 772,360 857,658
Customers' liabilities for acceptances and guarantees 3,715,226 3,878,504
Reserve for possible loan losses (1,089,029) (1,077,852)
Total assets ¥116,894,603 ¥119,637,224
Deposits ¥ 77,829,472 ¥ 75,569,497
Negotiable certificates of deposit 7,824,511 7,461,284
Call money and bills sold 2,763,874 2,499,113
Payables under repurchase agreements 969,718 778,993
Payables under securities lending transactions 2,193,261 7,589,283
Trading liabilities 3,531,542 3,597,658
Borrowed money 4,407,067 4,644,699
Foreign exchanges 286,463 281,145
Short-term bonds 1,067,474 1,019,342
Bonds 3,571,326 3,683,483
Due to trust account 70,640 60,918
Other liabilities 2,897,281 3,803,046
Reserve for employee bonuses 8,236 27,659
Reserve for executive bonuses - 513
Reserve for employee retirement benefits 34,864 35,643
Reserve for executive retirement benefits 7,159 7,965
Reserve for reimbursement of deposits 10,516 11,767
Reserves under the special laws 358 432
Deferred tax liabilities 26,516 27,287
Deferred tax liabilities for land revaluation 47,160 47,217
Acceptances and guarantees 3,715,226 3,878,504
Total liabilities 111,262,672 115,025,460
Capital stock 1,834,572 1,420,877
Capital surplus 474,976 57,245
Retained earnings 1,297,083 1,245,085
Treasury stock (124,023) (124,024)
Stockholders' equity 3,482,608 2,599,183
Net unrealized gains (losses) on other securities 419,576 (14,649)
Net deferred losses on hedges (32,393) (20,835)
Land revaluation excess 35,235 35,159
Foreign currency translation adjustments (96,370) (129,068)
Valuation and translation adjustments 326,047 (129,394)
Stock acquisition rights 71 66
Minority interests 1,823,203 2,141,908
Total net assets 5,631,930 4,611,764
Total liabilities and net assets ¥116,894,603 ¥119,637,224
(2) Consolidated Statements of Income
(Millions of yen)
Three months ended June 30, 2008 2009
Ordinary income ¥ 951,902 ¥ 764,985
Interest income 547,299 433,278
Interest on loans and discounts 398,074 333,865
Interest and dividends on securities 81,564 60,852
Trust fees 565 251
Fees and commissions 165,259 154,370
Trading income 6,744 33,495
Other operating income 223,099 139,185
Other income 8,933 4,405
Ordinary expenses 878,267 649,737
Interest expenses 217,154 96,341
Interest on deposits 99,988 42,818
Fees and commissions payments 30,591 30,674
Trading losses 91,921 -
Other operating expenses 131,324 97,370
General and administrative expenses 275,185 268,024
Other expenses 132,090 157,326
Ordinary profit 73,635 115,248
Extraordinary gains 1,902 358
Extraordinary losses 974 1,494
Income before income taxes and minority interests 74,563 114,111
Income taxes-current 23,229 28,888
Income taxes-deferred (27,732) (16,956)
Minority interests in income 20,970 29,405
Net income ¥ 58,096 ¥ 72,773
(3) Note on the Assumption as a Going Concern
Not applicable.
(4) Segment Information
Three months ended June 30, 2008
(Millions of yen)
Banking Leasing Other Total Elimination Consolidated
business business business
Ordinary income
(1) External customers ¥ 751,388 ¥ 90,231 ¥ 110,282 ¥ 951,902 ¥ - ¥ 951,902
(2) Intersegment 15,050 667 81,045 96,763 (96,763) -
Total 766,439 90,898 191,327 1,048,665 (96,763) 951,902
Ordinary profit ¥ 43,238 ¥ 11,529 ¥ 43,683 ¥ 98,451 ¥ (24,816) ¥ 73,635
(Notes)
1. The business segmentation is classified based on SMFG's internal
administrative purpose. Ordinary income and ordinary profit are presented as
counterparts of sales and operating profit of companies in other industries.
2. "Other business" includes securities, credit card business, investment
banking, loans, venture capital, system development and information processing.
Three months ended June 30, 2009
(Millions of yen)
Banking Leasing Other Total Elimination Consolidated
business business business
Ordinary income
(1) External customers ¥ 581,877 ¥ 78,814 ¥ 104,294 ¥ 764,985 ¥ - ¥ 764,985
(2) Intersegment 15,852 1,872 67,733 85,458 (85,458) -
Total 597,729 80,686 172,027 850,444 (85,458) 764,985
Ordinary profit ¥ 105,068 ¥ 10,540 ¥ 13,587 ¥ 129,197 ¥ (13,949) ¥ 115,248
(Notes)
1. The business segmentation is classified based on SMFG's internal
administrative purpose. Ordinary income and ordinary profit are presented as
counterparts of sales and operating profit of companies in other industries.
2. "Other business" includes securities, credit card business, investment
banking, loans, venture capital, system development and information processing.
(5) Material Change in Stockholders' Equity
(Millions of yen)
Three months ended June 30, 2009 Capital stock Capital surplus Retained earnings Treasury stock Stockholders' equity
Balance at March 31, 2009 ¥ 1,420,877 ¥ 57,245 ¥ 1,245,085 ¥ (124,024) ¥ 2,599,183
Changes in the period:
Issuance of new shares (Note) 413,695 417,790 831,485
Cash dividends (20,793) (20,793)
Net income 72,773 72,773
Purchase of treasury stock (83) (83)
Disposal of treasury stock (59) 84 24
Increase due to increase in subsidiaries 0 0
Increase due to decrease in subsidiaries 0 0
Decrease due to increase in subsidiaries (3) (3)
Decrease due to decrease in subsidiaries (0) (0)
Reversal of land revaluation excess 20 20
Net changes in the period 413,695 417,730 51,997 1 883,424
Balance at June 30, 2009 ¥ 1,834,572 ¥ 474,976 ¥ 1,297,083 ¥ (124,023) ¥ 3,482,608
(Note)
Increases in "Capital stock" of ¥413,695 million and "Capital surplus" of
¥417,790 million were due to the issuance of new shares by way of public
offering on June 22, 2009.
Financial Results
for the Three Months
ended June 30, 2009
- Supplementary Information -
1. Operating Results [SMFG]
2. Operating Results [SMBC]
3. Interest Spread (Domestic)
4. Problem Assets Based on the Financial
Reconstruction Law
5. Net Unrealized Gains on Securities
6. Overview of Derivative Transactions
(on Deferred Hedge Accounting Basis)
7. Deposits and Loans
8. Return on Equity
9. Exposure of Securitized Products
… SMFG's consolidated figures
… SMBC's non-consolidated figures
Capital ratio as of June 30, 2009 will be announced when it is fixed.
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation
1. Operating Results
(Millions of yen)
Three months ended Change Three months Year
June 30, 2009 (A) - (B) ended ended
(A) June 30, 2008 March 31, 2009
(B)
Consolidated gross profit 1 536,194 64,217 471,977 2,165,880
Net interest income 2 336,937 6,792 330,145 1,338,453
Trust fees 3 251 (314) 565 2,122
Net fees and commissions 4 123,695 (10,973) 134,668 557,178
Net trading income 5 33,495 118,671 (85,176) 211,738
Net other operating income 6 41,814 (49,960) 91,774 56,386
General and administrative expenses 7 (268,024) 7,161 (275,185) (1,063,419)
Credit costs 8 (120,067) (5,791) (114,276) (769,484)
Write-off of loans 9 (45,224) (12,643) (32,581) (302,353)
Provision for specific reserve for possible loan losses 10 (81,753) (5,496) (76,257) (297,400)
Provision for general reserve for possible loan losses 11 11,632 12,748 (1,116) (104,145)
Other credit cost 12 (4,722) (401) (4,321) (65,585)
Gains (losses) on stocks 13 (2,465) 2,561 (5,026) (183,677)
Equity in earnings (losses) of affiliates 14 (23,530) (25,005) 1,475 (94,876)
Other income (expenses) 15 (6,857) (1,528) (5,329) (9,111)
Ordinary profit 16 115,248 41,613 73,635 45,311
Extraordinary gains (losses) 17 (1,136) (2,064) 928 (15,815)
Losses on impairment of fixed assets 18 (1,022) (293) (729) (7,363)
Recoveries of written-off claims 19 283 (48) 331 1,708
Income before income taxes and minority interests 20 114,111 39,548 74,563 29,495
Income taxes-current 21 (28,888) (5,659) (23,229) (72,238)
Income taxes-deferred 22 16,956 (10,776) 27,732 (262,405)
Minority interests in income 23 (29,405) (8,435) (20,970) (68,308)
Net income 24 72,773 14,677 58,096 (373,456)
(Notes)
1. Amounts less than one million yen have been omitted. 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 expenses) + (Other operating income - Other
operating expenses)
Total credit cost (8)+(19) 25 (119,784) (5,840) (113,944) (767,775)
(Billions of yen)
Consolidated net business profit 26 196.4 40.3 156.1 728.7
(Note) Consolidated net business profit = (SMBC Non-consolidated banking profit
(before provision for general reserve for possible loan losses))
+ (Other consolidated subsidiaries' ordinary profit (excluding non-recurring
items) + (Affiliates' ordinary profit) X (Ownership ratio)
- (Internal transaction (dividends, etc.))
(Number of consolidated subsidiaries and equity method affiliates)
June 30, 2008
June 30, 2009 Change March 31, 2009
Consolidated subsidiaries 27 292 4 288 275
Equity method affiliates 28 78 (1) 79 77
2. Operating Results
(Millions of yen)
Three months Change Three months Year
ended (A) - (B) ended ended
June 30, 2009 June 30, 2008 March 31, 2009
(A) (B)
Gross banking profit 1 370,986 62,693 308,293 1,524,856
Excluding gains (losses) on bonds 2 330,499 (8,064) 338,563 1,498,728
Net interest income 3 261,271 9,423 251,848 1,018,389
Trust fees 4 244 (311) 555 2,074
Net fees and commissions 5 60,200 (4,786) 64,986 293,824
Net trading income 6 17,189 110,092 (92,903) 175,038
Net other operating income 7 32,081 (51,725) 83,806 35,530
Gains (losses) on bonds 8 40,487 70,757 (30,270) 26,128
Expenses (excluding non-recurring losses) 9 (175,586) 4,188 (179,774) (701,479)
Personnel expenses 10 (65,281) (1,834) (63,447) (236,966)
Non-personnel expenses 11 (101,889) 5,370 (107,259) (426,231)
Taxes 12 (8,415) 652 (9,067) (38,282)
Banking profit (before provision for general reserve for possible loan losses) 13 195,400 66,881 128,519 823,377
Excluding gains (losses) on bonds 14 154,913 (3,876) 158,789 797,248
Provision for general reserve for possible loan losses 15 23,741 16,147 7,594 (75,730)
Banking profit 16 219,142 83,029 136,113 747,647
Non-recurring gains (losses) 17 (109,794) (15,481) (94,313) (711,591)
Credit costs 18 (93,082) (1,690) (91,392) (474,358)
Gains (losses) on stocks 19 (1,206) (589) (617) (220,429)
Gains on sale of stocks and other securities 20 2,458 (642) 3,100 7,066
Losses on sale of stocks and other securities 21 (96) 63 (159) (4,348)
Losses on devaluation of stocks and other securities 22 (3,569) (12) (3,557) (223,147)
Other non-recurring gains (losses) 23 (15,505) (13,202) (2,303) (16,803)
Ordinary profit 24 109,347 67,548 41,799 36,055
Extraordinary gains (losses) 25 (1,236) (1,390) 154 (8,269)
Gains (losses) on disposal of fixed assets 26 (265) (987) 722 (2,139)
Losses on impairment of fixed assets 27 (1,007) (439) (568) (6,138)
Recoveries of written-off claims 28 36 36 0 8
Income before income taxes 29 108,110 66,156 41,954 27,786
Income taxes-current 30 (9,348) (8,048) (1,300) (23,748)
Income taxes-deferred 31 9,149 (6,351) 15,500 (305,154)
Net income (loss) 32 107,911 51,757 56,154 (301,116)
Total credit cost (15)+(18)+(28) 33 (69,303) 14,494 (83,797) (550,079)
Provision for general reserve for possible loan losses 34 23,741 16,147 7,594 (75,730)
Write-off of loans 35 (32,898) (1,553) (31,345) (231,412)
Provision for specific reserve for possible loan losses 36 (57,526) (1,420) (56,106) (182,346)
Losses on sales of delinquent loans 37 (2,664) 1,276 (3,940) (60,182)
Provision for loan loss reserve for specific overseas countries 38 7 7 - (417)
Recoveries of written-off claims 39 36 36 0 8
(Note) Amounts less than one million yen have been omitted. Figures in
parenthesis indicate the amount of loss or decrease.
3. Interest Spread (Domestic)
(%)
Three months Year
ended ended
June 30, 2008 March 31, 2009
(B)
Three months Change
ended (A) - (B)
June 30, 2009
(A)
Interest earned on loans and bills discounted (A) 1.81 (0.21) 2.02 1.99
Interest paid on deposits, etc. (B) 0.16 (0.09) 0.25 0.23
Interest spread (A) - (B) 1.65 (0.12) 1.77 1.76
4. Problem Assets Based on the Financial Reconstruction Law
(Billions of yen)
June 30, 2009 March 31, 2009 June 30, 2008
Change from March 31, 2009
Bankrupt and quasi-bankrupt assets 1 524.7 19.0 505.7 225.9 4,859
Doubtful assets 2 939.1 73.5 865.6 586.7 14,091
Substandard loans 3 291.5 9.6 281.9 412.2 14,412
Total (A) 4 1,755.3 102.1 1,653.2 1,224.8 33,362
Normal assets 5 70,733.7 (160.9) 70,894.6 71,803.4 561,275
Total (B) 6 72,489.0 (58.8) 72,547.8 73,028.2 594,637
Problem asset ratio (A/B) 7 2.42% 0.14% 2.28% 1.68% 5.6%
Amount of direct reduction 772.5 55.5 717.0 576.6 12,361
(Billions of yen)
June 30, 2009 March 31, 2009 June 30, 2008
Change from March 31, 2009
Bankrupt and quasi-bankrupt assets 8 330.5 10.9 319.6 127.0 3,616
Doubtful assets 9 738.7 60.4 678.3 477.4 12,027
Substandard loans 10 205.2 8.9 196.3 275.2 12,469
Total (A) 11 1,274.4 80.2 1,194.2 879.6 28,112
Normal assets 12 65,282.8 (745.7) 66,028.5 66,538.2 528,744
Total (B) 13 66,557.2 (665.5) 67,222.7 67,417.8 556,856
Problem asset ratio (A/B) 14 1.91% 0.13% 1.78% 1.30% 5.0%
Amount of direct reduction 522.4 42.9 479.5 386.2 8,894
(Note)
Problem Assets Based on the Financial Reconstruction Law include loans, acceptances and guarantees, suspense payments, and other credit-type assets.
5. Net Unrealized Gains on Securities
(Billions of yen)
June 30, 2009 March 31, 2009
Balance sheet amount Net unrealized gains (losses) Balance sheet amount Net unrealized gains (losses)
Change from Mar.2009 Gains Losses Gains Losses
Held-to-maturity securities 1 2,660.1 40.1 13.3 40.6 (0.5) 2,081.7 26.8 28.2 (1.4)
Other securities 2 24,561.8 457.9 491.1 690.3 (232.4) 26,602.9 (33.2) 356.8 (390.0)
Stocks 3 2,774.0 471.7 464.6 602.9 (131.2) 2,317.5 7.1 287.4 (280.3)
Bonds 4 17,013.0 34.3 37.2 36.6 (2.3) 16,909.8 (2.9) 21.5 (24.4)
Others 5 4,774.8 (48.1) (10.7) 50.8 (98.9) 7,375.6 (37.4) 47.9 (85.3)
Other money held in trust 6 7.9 (0.2) 0.1 0.0 (0.2) 7.6 (0.3) - (0.3)
Total 7 27,229.8 497.8 504.5 730.9 (233.1) 28,692.2 (6.7) 385.0 (391.7)
Stocks 8 2,774.0 471.7 464.6 602.9 (131.2) 2,317.5 7.1 287.4 (280.3)
Bonds 9 19,652.8 74.7 50.3 77.2 (2.5) 18,972.3 24.4 49.7 (25.3)
Others 10 4,803.0 (48.6) (10.4) 50.8 (99.4) 7,402.4 (38.2) 47.9 (86.1)
(Notes)
1. The figures above include valuation difference on negotiable certificates of deposit bought in "Cash and due from banks" and beneficiary claims on loan trust in "Monetary claims bought."
2. Net unrealized gains (losses) on stocks are mainly calculated with the average market prices during the final month of the corresponding period. Rest of the securities is valued at the market prices as of the balance sheet date.
3. Other securities and Other money held in trust are valued and recorded on the balance sheet at market prices. Valuation difference in the table above indicates the difference between the acquisition cost (or amortized costs) and the balance sheet amounts.
4. Floating-rate Japanese government bonds which SMFG held as "Other securities - AFS securities" are carried at their reasonably estimated amounts in accordance with the "Practical Solution on Measurement of Fair Value of Financial Assets" (Accounting Standard Board of Japan Practical Issues Task Force No. 25, issued on October 28, 2008).
(Billions of yen)
June 30, 2009 March 31, 2009
Balance sheet amount Net unrealized gains (losses) Balance sheet amount Net unrealized gains (losses)
Change from Mar.2009 Gains Losses Gains Losses
Held-to-maturity securities 11 2,598.4 40.5 12.6 40.5 - 2,051.7 27.9 28.2 (0.3)
Stocks of subsidiaries and affiliates 12 1,487.3 (3.8) (0.3) 7.1 (10.9) 1,370.2 (3.5) - (3.5)
Other securities 13 22,864.2 436.1 478.8 660.6 (224.5) 24,975.0 (42.7) 337.5 (380.2)
Stocks 14 2,710.9 445.8 462.3 580.8 (135.0) 2,249.8 (16.5) 273.1 (289.6)
Bonds 15 15,885.6 29.2 30.4 29.8 (0.6) 15,797.3 (1.2) 16.9 (18.1)
Others 16 4,267.7 (38.9) (13.9) 50.0 (88.9) 6,927.9 (25.0) 47.5 (72.5)
Other money held in trust 17 7.9 (0.2) 0.1 0.0 (0.2) 7.6 (0.3) - (0.3)
Total 18 26,957.8 472.6 491.2 708.2 (235.6) 28,404.5 (18.6) 365.7 (384.3)
Stocks 19 3,136.6 442.0 462.0 587.9 (145.9) 2,674.5 (20.0) 273.1 (293.1)
Bonds 20 18,484.0 69.7 43.0 70.3 (0.6) 17,849.0 26.7 45.1 (18.4)
Others 21 5,337.2 (39.1) (13.8) 50.0 (89.1) 7,881.0 (25.3) 47.5 (72.8)
(Notes)
1. The figures above include valuation difference on negotiable certificates of deposit bought in "Cash and due from banks" and beneficiary claims on loan trust in "Monetary claims bought."
2. Net unrealized gains (losses) on stocks (excluding stocks of subsidiaries and affiliates) are calculated with the average market prices during the final month of the corresponding period. Rest of the securities is valued at the market prices as of the balance sheet date.
3. Other securities and Other money held in trust are valued and recorded on the balance sheet at market prices. Valuation difference in the table above indicates the difference between the acquisition cost (or amortized costs) and the balance sheet amounts.
4. Floating-rate Japanese government bonds which SMFG held as "Other securities - AFS securities" are carried at their reasonably estimated amounts in accordance with the "Practical Solution on Measurement of Fair Value of Financial Assets" (Accounting Standard Board of Japan Practical Issues Task Force No. 25, issued on October 28, 2008).
6. Overview of Derivative Transactions (on Deferred Hedge Accounting Basis)
(Billions of yen)
June 30, 2009 March 31, 2009
Assets Liabilities Net assets Net deferred gains (losses) Assets Liabilities Net assets Net deferred gains (losses)
Interest rate swaps 87.8 29.6 58.2 (75.9) 106.3 39.1 67.2 (64.4)
Currency swaps 143.2 4.1 139.1 17.4 124.5 1.9 122.6 25.9
Others 0.2 1.5 (1.3) 77.3 2.0 2.8 (0.8) 69.8
Total 231.2 35.2 196.0 18.8 232.8 43.8 189.0 31.3
(Notes)
1. Derivative transactions are valuated at fair value in the balance sheet.
2. SMBC applies individual deferred hedge or fair value hedge accounting based on Practical Guidelines for Accounting Standard for Financial
Instruments as well as deferred hedge accounting for banking industry based on JICPA Industry Audit Committee Report No.24 and No.25.
3. Net deferred gain (loss) shows the amounts before applying tax effect accounting.
(Appendix) Contract amount of interest rate swaps (on deferred hedge accounting basis), classified by maturity
(Billions of yen)
June 30, 2009 March 31, 2009
1 year or less 1-5 years Over 5 years Total 1 year or less 1-5 years Over 5 years Total
Receivable fixed rate /payable floating rate 4,999.1 12,450.1 3,420.9 20,870.1 3,822.8 11,964.6 3,325.7 19,113.1
Receivable floating rate /payable fixed rate 2,230.4 5,401.4 4,093.2 11,725.0 2,207.1 5,173.5 3,828.6 11,209.2
Receivable floating rate /payable floating rate 20.0 30.5 - 50.5 - 50.5 - 50.5
Total contract amount 7,249.5 17,882.0 7,514.1 32,645.6 6,029.9 17,188.6 7,154.3 30,372.8
7. Deposits and Loans
(Billions of yen)
June 30, 2009 March 31, 2009 June 30, 2008
Change from Mar. 31, 2009
Domestic deposits 66,838.5 614.1 66,224.4 64,564.8
Individual 35,557.2 668.0 34,889.2 34,633.4
(Note) Calculation based on the numbers before elimination of temporary inter-office accounts,
excluding "negotiable certificates of deposit" and offshore banking accounts.
Loans and bills discounted 59,917.3 (324.0) 60,241.3 59,203.9
Domestic offices (excluding offshore banking account) 51,502.0 260.2 51,241.8 49,638.7
Overseas offices and offshore banking accounts 8,415.3 (584.2) 8,999.5 9,565.2
8. Return on Equity
Three months ended June 30, 2009 Three months ended June 30, 2008 Year ended
March 31, 2009
Change
Fully-diluted ROE 9.3% 2.8% 6.5% (12.3)%
(Note) (Net income) X (number of days in a year) / (number of days in the relevant period)
{(Net assets at beginning of period)-(Stock acquisition rights at beginning of period)-(Minority interests at beginning of period)}
+ {(Net assets at period-end - Stock acquisition rights at period-end - Minority interests at period-end)} / 2
9．Exposure of Securitized Products
1. Securitized products
(1) As of June 30, 2009, we held 0.2 billion yen in sub-prime related securitized products and 36.8 billion yen other than sub-prime related products after write-offs and provisions. Those figures exclude Government Sponsored Enterprises ("GSE") etc.
(2) The amount of loss on securitized products for the 1st quarter of FY2009 was 0.1 billion yen for sub-prime related products. We had no loss on products other than sub-prime.
(1) Sub-prime related products
(Billions of yen)
June 30, 2009 March 31, 2009 Ratings of underlying assets, etc.
Balances (after provisions and write-offs) Net unrealized gains/losses (after write-offs) Balances (after provisions and write-offs) Net unrealized gains/losses (after write-offs)
Overseas Overseas
Change from Mar. 2009 Change from Mar. 2009 Change from Mar. 2009
Investments to securitized products 0.2 (0.1) 0.2 (0.1) (0.0) (0.0) 0.3 0.3 - Speculative ratings
Total 0.2 (0.1) 0.2 (0.1) (0.0) (0.0) 0.3 0.3 -
(2) Products other than sub-prime related (Excludes GSE etc.)
(Billions of yen)
June 30, 2009 March 31, 2009 Ratings of underlying assets, etc.
Balances (after provisions and write-offs) Net unrealized gains/losses (after write-offs) Balances (after provisions and write-offs) Net unrealized gains/losses (after write-offs)
Overseas Overseas
Change from Mar. 2009 Change from Mar. 2009 Change from Mar. 2009
Cards 4.0 (0.1) 4.0 (0.1) 0.0 0.4 4.1 4.1 (0.4) BBB
CLO 4.9 (0.2) 4.9 (0.2) (0.9) 0.2 5.1 5.1 (1.1)
Senior 4.8 (0.2) 4.8 (0.2) (0.9) 0.2 5.0 5.0 (1.1) AAA
Equity 0.1 0.0 0.1 0.0 0.0 0.0 0.1 0.1 - No ratings
CMBS 20.9 0.1 - - (0.2) (0.0) 20.8 - (0.2) AAA-BBB
Investments to securitized products 29.8 (0.2) 8.9 (0.3) (1.1) 0.6 30.0 9.2 (1.7)
Warehousing Loans etc. 7.0 0.4 7.0 0.4 - - 6.6 6.6 -
Total 36.8 0.2 15.9 0.1 (1.1) 0.6 36.6 15.8 (1.7)
(Notes)
1. "Senior" means the upper tranche under senior-subordinate structure."Senior" means the upper tranche under senior-subordinate structure.
2. Warehousing loans represent lendings to SPV established for the securitization with collateral of SPV's assets.
3. Credit ratings are in principle indicated by the lower of S&P ratings and Moody's ratings. Notation of credit ratings is followed by the notation system of S&P.
4. There is no amount of RMBS (excludes GSE etc.) and ABCP.
5. Excludes GSE and SMBC's exposure to subordinated beneficiaries owned through the securitization of SMBC's loan receivables (see next page for details).
（Reference 1）RMBS issued/guaranteed by GSEs etc.
(Billions of yen)
June 30, 2009 March 31, 2009 Ratings
Balances Net unrealized gains/losses Balances Net unrealized gains/losses
Overseas Overseas
Change from Mar. 2009 Change from Mar. 2009 Change from Mar. 2009
Guaranteed by GSEs etc. 97.3 (177.9) 97.3 (177.9) (0.7) (3.8) 275.2 275.2 3.1 AAA
(Notes)
1. GSE etc. includes GNMA, FNMA and FHLMC. Besides RMBS, SMFG held bonds issued by GSEs (FNMA, FHLMC and Federal Home Loan Banks) of 195.2 billion yen.
2. Credit ratings are in principle indicated by the lower of S&P ratings and Moody's ratings. Notation of credit ratings is followed by the notation system of S&P.
（Reference）
SMBC's exposure to subordinated beneficiaries owned through the securitization of SMBC's loan receivables
Most of the securitized assets are domestic residential mortgage loans with low default rates.
SMBC properly conducts self-assessment and has made the necessary write-offs and provisions for the subordinated beneficiaries.
(Billions of yen)
June 30, 2009 March 31, 2009
Balances Reserve for possible loan losses Balances Reserve for possible loan losses
Overseas Overseas
Subprime-related Subprime-related
Change from Mar.2009
Receivables of residential 248.6 (2.2) - - - 250.8 - - -
mortgage loans
Receivables of loans to corporations 7.0 (0.1) - - 2.3 7.1 - - 1.5
Total 255.6 (2.3) - - 2.3 257.9 - - 1.5
(Notes)
1. No subsidiary other than SMBC has those subordinated beneficiaries mentioned above.
2. Reserves do not include general reserve for possible loan losses for normal borrowers.
2. Transactions with monoline insurance companies
Monoline insurance companies guarantee payment on underlying or reference assets. Our recognition of profit or loss on the transactions with monoline insurance companies is basically affected by the credit conditions and prices of underlying or reference assets, and is also affected by the credit conditions of monoline insurance companies.
(1) Credit derivatives (Credit Default Swap ["CDS"]) transactions with monoline insurance companies
In CDS*1 brokerage transactions, positions are covered through transactions with monoline insurance companies. As of June 30, 2009, the Group's exposure*2 to monoline insurance companies totaled approximately 98 billion yen.
Reference assets of these CDS transactions are rated investment grade or equivalent, and do not include subprime-related assets.
SMFG recorded no loss on such transactions in the 1st quarter of FY2009.
*1 Derivatives to hedge credit risks
*2 Mark-to-market value claimable to monoline insurance companies for net loss of reference assets on the settlement
(Billions of yen)
June 30, 2009 March 31, 2009 June 30, 2009 March 31, 2009
Net exposure Reserve for possible loan losses Net exposure Reserve for possible loan losses Amount of reference assets Amount of reference assets
Change from Mar.2009 Change from Mar.2009
Exposure to CDS transactions with monoline insurance companies 97.8 (34.2) 4.2 132.0 5.0 520.7 (16.0) 536.7
(2) Loans and investments guaranteed by monoline insurance companies etc.
Underlying assets are those of project finance and local government bonds rated investment grade or equivalent, and include no subprime-related assets. We conduct self-assessment to these loans and investments properly.
(Billions of yen)
June 30, 2009 March 31, 2009
Exposure Reserve for possible loan losses Exposure Reserve for possible loan losses
Change from Mar.2009
Loans and investments guaranteed or insured by monoline insurance companies 13.2 0.9 0.0 12.3 0.0
(Reference) In addition, we had approximately 0.8 billion yen in commitment contracts (undrawn) to insurance companies with monoline insurance as
group members.
3. Leveraged loans
(1) As of June 30, 2009, the Group's balance of financing for mergers and acquisitions of whole or part of companies
was approximately 750 billion yen and undrawn commitments for them was approximately 120 billion yen.
(2) In providing loans and commitment lines for mergers and acquisitions, we carefully scrutinize stability of cash flow
of the borrowers, and, diversify the exposure especially for overseas portfolio in order to reduce concentration risk.
At the same time, in credit risk management, we monitor each of such transactions individually, making loss
provisions properly, thereby maintaining the quality of both domestic and overseas portfolios.
(Billions of yen)
June 30, 2009 March 31, 2009
Loans Undrawn commitments Reserve for possible loan losses Loans Undrawn commitments Reserve for possible loan losses
Change from Mar.2009 Change from Mar.2009
Europe 319.6 13.6 34.5 0.3 3.2 306.0 34.2 2.8
Japan 187.8 7.9 9.4 (19.8) 13.8 179.9 29.2 13.4
United States 157.2 (21.8) 66.0 (4.0) 3.9 179.0 70.0 4.1
Asia 87.3 8.5 6.4 2.5 0.1 78.8 3.9 2.3
(excluding Japan)
Total 751.9 8.2 116.3 (21.0) 21.0 743.7 137.3 22.6
(*) 1. Above figures include the amount to be sold of approximately 15 billion yen.
In the 1st quarter of FY2009, we sold leveraged loans of approximately 6 billion yen, and loss on the sale amounted to approximately
3 billion yen.
2. Above figures do not include leveraged loans which are included in underlying assets of "1. Securitized products".
3. Reserves do not include general reserve for possible loan losses against normal borrowers.
4. ABCP programs as Sponsor
(1) The Group sponsors issuance of ABCP, whose reference assets are such as clients' receivables, in order to fulfill clients' financing needs.
Specifically, as a sponsor, we provide services to special purpose vehicles, which are set up for clients' financing needs, for purchase of claims, financing, issuance and sales of ABCPs. We also provide liquidity and credit supports for such special purpose vehicles. The Group sponsors issuance of ABCP, whose reference assets are such as clients' receivables, in order to fulfill clients' financing needs.
(2) As of June 30, 2009, the total notional amount of reference assets of sponsored ABCP programs was approximately 490 billion yen. Most of the reference assets are high-grade claims of corporate clients and do not include subprime loan related assets.
In addition, regarding the exposure of liquidity and credit supports, we properly conduct self-assessment, making provisions and write-offs properly.
(Billions of yen)
Types of reference assets June 30, 2009 March 31, 2009 Support for programs
Notional amount of reference Reserve for possible loan losses Notional amount of reference Reserve for possible loan losses Liquidity support Reserve for possible loan losses
assets assets
Overseas Overseas
Change from Mar.2009 Change from Mar.2009
Claims on corporations 441.5 (218.4) 191.5 (20.8) - 659.9 212.3 - yes yes
Claims on financial institutions 19.2 (0.5) 19.2 (0.5) - 19.7 19.7 - yes yes
Retail loan claims 24.9 (3.5) 24.9 (3.5) - 28.4 28.4 - yes yes
Other claims - (0.6) - (0.6) - 0.6 0.6 - yes yes
Total 485.6 (223.0) 235.6 (25.4) - 708.6 261.0 -
(Note) Reserves do not include general reserve for possible loan losses against normal borrowers.
(Reference) In addition, we provide liquidity and credit supports for ABCP programs which are sponsored by other banks.
Total notional amount of reference assets of such programs are approximately 54 billion yen.
5. Others
We have no securities issued by Structured Investment Vehicles.
Sumitomo Mitsui Bnkg
Copyright Business Wire 2009
http://www.businesswire.com/news/home/20090730005585/en
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Follow Reuters