* April-June net profit Y117.8 bln, vs 206.6 bln a year
* Impairment losses on its equity portfolio hurt profits
TOKYO, July 30 Sumitomo Mitsui Financial Group
on Monday reported a 43 percent f all in its financial
first quarter profit, dragged down by impairment losses on its
equity portfolio amid a market slump.
SMFG, Japan' third-largest lender by assets, was the first
among the country's top banks to announce April-June results,
with Mitsubishi UFJ Financial Group and Mizuho
Financial Group due to follow on Tuesday.
The bank said its quarterly net profit was 117.8 billion yen
($1.5 billion), down from 206.6 billion y en a year earlier.
SMFG and its domestic rivals suffered sharp falls in the
value of their equity holdings during the April-June period,
when the benchmark Nikkei average declined 10.7 percent.
Japanese banks have massive share portfolios due to the
traditional business practice of taking equity stakes in their
With little exposure to Europe's troubled economies,
Japanese banks are seen as well-positioned to take advantage of
European rivals' retreat from Asia and other regions, while weak
growth prospects at home have put further pressure on Japanese
lenders to accelerate their overseas push.
Last month, SMFG completed the $7.3 billion acquisition of
Royal Bank of Scotland's aircraft leasing business.
SMFG kept its full-year net profit forecast at 480 billion
yen, down 7.4 percent from a year earlier, below an average
estimate of 494.4 billion yen in a poll of 16 analysts by
Shares of SMFG have risen 16 percent so far this year,
outperforming a 1.9 percent gain in benchmark Nikkei average