ANNUAL REPORT
YEAR ENDED MARCH 31, 2013
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Beyond our boundaries. Beyond our imagination.
We are qualified professionals to provide valuable financial services to our customers based
on our three core strengths — “Spirit of Innovation,” “Speed” and “Solution & Execution.”
Spirit of Innovation
We lead the market by providing innova-
tive, globally competitive services that
meet customer needs.
Solution & Execution
We lead the business by using all the
knowledge and experiences of our
group to solve the issues of our custom-
ers, whether individuals or corporates,
identified through a deep understanding
of their needs and financial situations.
Our Three Core Strengths
Speed
We lead the pace by providing our cus-
tomers with desirable services in a timely
manner with speed and determination.
CONTENTS
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6
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8
• Message from Top Management ............................
• Business Overview .................................................
Consumer Banking .................................................................
Services for Corporate Clients ................................................
Services for Business Owners,
High-Net Worth Individuals and Employees ......................... 12
Investment Banking ................................................................ 13
International Banking .............................................................. 14
Treasury Markets .................................................................... 16
Transaction Banking Business ................................................ 16
• Group Companies .................................................. 18
• Financial Highlights ................................................. 21
• Financial Review ..................................................... 25
• Risk Management .................................................. 33
• Corporate Social Responsibility (CSR) .................... 48
• Initiatives for Enhancing Customer Satisfaction (CS)
and Quality ........................................................... 50
• Corporate Governance ........................................... 51
• Internal Audit System ............................................. 52
• Compliance ............................................................ 53
• Environmental Preservation Initiatives ..................... 55
• Social Contribution Activities .................................. 59
• Human Resources .................................................. 63
• Financial Section and Corporate Data .................... 69
Financial Section .................................................................... 70
Corporate Data ...................................................................... 239
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This document contains “forward-looking statements” (as 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 condition and results of operations.
In many cases but not all, these statements contain words such
as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,”
“plan,” “probability,” “risk,” “project,” “should,” “seek,” “target,” “will”
and similar expressions. Such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties,
and actual results may differ from those expressed in or implied
by such forward-looking statements contained or deemed to be
contained herein. The risks and uncertainties which may affect future
performance include: deterioration of Japanese and global economic
conditions and financial markets; declines in the value of our securities
portfolio; our ability to successfully implement our business strategy
through our subsidiaries, affiliates and alliance partners; exposure to
new risks as we expand the scope of our business; and incurrence
of significant credit-related costs. Given these and other risks and
uncertainties, you should not place undue reliance on forward-looking
statements, which speak only as of the date of this document. We
undertake no obligation to update or revise any forward-looking
statements.
Please refer to our most recent disclosure documents such as our
annual report or registration statement on Form 20-F and other docu-
ments submitted to the U.S. Securities and Exchange Commission, as
well as our earnings press releases, for a more detailed description of
the risks and uncertainties that may affect our financial conditions and
our operating results, and investors’ decisions.
September 2013
Sumitomo Mitsui Financial Group, Inc.
Public Relations Department
1-2, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-0005, Japan
TEL: +81-3-3282-8111
Sumitomo Mitsui Banking Corporation
Public Relations Department
1-2, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-0005, Japan
TEL: +81-3-3282-1111
1
SMFG 2013
Message from Top Management
Dear Fellow Stakeholders,
We sincerely thank you for your continued support and patronage. In this annual report, we would
like to present our initiatives implemented in fiscal 2012 (fiscal year ended March 2013) and our
management policies going forward.
In fiscal 2012, SMFG achieved record-high net income of ¥794.1 billion, a ¥275.5 billion
increase year-on-year, with a ROE of 14.8%, and all of the financial targets of the medium-term
management plan one year ahead of schedule.
We consider fiscal 2013, the last year of the medium-term management plan, as the year to
“proactively contribute to the revitalization of the Japanese economy, and as a result achieve the
growth of SMFG” and “create new business models and challenge for innovation for our next leap
forward.” We will proactively support the revitalization of the Japanese economy through SME
financing and other measures, and at the same time address changes in the financial needs of our
clients and business environment in order to position us for medium- to long-term growth.
Principal Initiatives in Fiscal 2012
The European economy decelerated in fiscal 2012 as
the sovereign debt crisis intensified, but there were
signs of economic recovery notably in the U.S. and
China. In Japan, although industrial production and
exports decreased markedly, a certain level of recov-
ery was observed toward the end of the fiscal year
mainly due to the yen’s depreciation.
Against this backdrop, we had set fiscal 2012, the
second year of the medium-term management plan
for the three years from fiscal 2011 to 2013, as the
year for moving forward steadily toward the targets
of the medium-term management plan, capturing
opportunities with proactive ideas and actions, and
we proactively strengthened initiatives to achieve the
twin management targets of aiming for top quality
in strategic business areas and establishing a solid
financial base and corporate infrastructure to meet the
challenges of financial regulations and highly competi-
tive environment.
Specifically, we enhanced the product line-up of
SMBC in the securities intermediary business and
insurance business for our retail clients to better
accommodate their diversifying asset management
needs. We also actively supported our corporate cli-
ents by financing their restructuring and other needs,
resulting in a year-on-year increase in loan balance
Koichi Miyata
President
Sumitomo Mitsui Financial Group, Inc.
2
SMFG 2013
of SMBC’s Middle Market Banking Unit. In the inter-
national business, we provided high quality services
in areas such as project finance and loan syndica-
tion where we have a global competitive advantage,
as demonstrated by SMBC being awarded “Global
Bank of the Year” by the magazine Project Finance
International. In the securities business, SMBC and
SMBC Nikko Securities strengthened their collabo-
ration in the retail securities business and released
an on-line account linkage service called “Bank and
Trade.” In addition, SMBC Nikko Securities continued
to enhance its capabilities in the wholesale securities
business by launching Japanese stock brokerage and
M&A advisory services in Singapore. In the consumer
finance business, we concentrated our business
resources into specific companies: Promise was
made a wholly-owned subsidiary and renamed SMBC
Progress of financial targets
in the medium-term management plan
Common Equity Tier 1
capital ratio*1
Mar. 2011 Mar. 2013
Mar. 2014
Target
Basel III fully-loaded basis*2 above 6%
8.6%
8%
Consolidated net
income RORA
Consolidated overhead
ratio
SMBC non-consolidated
overhead ratio
Overseas banking profit
ratio*3
FY3/2011
FY3/2013
FY3/2014
Target
0.8%
1.3%
0.8%
52.5%
52.4%
50%-55%
45.6%
47.3%
45%–50%
23.3%
30.2%
30%
*1 SMFG consolidated
*2 Based on the definition as of Mar. 31, 2019
*3 Based on the medium-term management plan assumed exchange rate of
1USD = JPY85 for FY3/2012 to FY3/2014
Management Policies for Fiscal 2013
Consumer Finance; shares of ORIX Credit were
In line with our basic policy for fiscal 2013 — “proactively
sold back to ORIX; and SMBC Consumer Finance
contribute to the revitalization of the Japanese economy,
decided to make the loan business of Mobit into a
and as a result achieve the growth of SMFG” and “cre-
wholly-owned subsidiary. In the leasing business, we
ate new business models and challenge for innovation
completed the joint acquisition of the aircraft leas-
for our next leap forward” — we will proactively finance
ing business from The RBS Group, named it SMBC
business activities, and capture opportunities presented
Aviation Capital, and integrated our group’s major
by the shift from savings to investment in Japan and the
aircraft leasing companies into the company.
As a result of these steady performances by the
marketing units of SMBC and other group companies
and low credit cost, SMFG’s consolidated ordinary
profit increased ¥138.2 billion to ¥1,073.7 billion, and
net income increased ¥275.5 billion to record-high
¥794.1 billion with a ROE of 14.8%. We also achieved
all of the financial targets of the medium-term man-
agement plan one year ahead of schedule.
Takeshi Kunibe
President and CEO
Sumitomo Mitsui Banking Corporation
3
SMFG 2013 growth of Asia and other emerging markets. Further, as
build up knowledge on a global basis. Furthermore,
fiscal 2013 is the last year of the medium-term manage-
SMBC Nikko Securities will continue to enhance its
ment plan, we will focus on quality as we proactively
capabilities in the wholesale securities business such
capture opportunities, and continue to implement our
as equity and debt underwriting and M&A advisory,
medium- to long-term initiatives to enhance our client
as well as to intensify its collaboration with SMBC to
base for the sustainable growth of SMFG.
accommodate our clients’ diversifying and increas-
◎ Initiatives by business line
We will reinforce the functions of our group compa-
nies in order to provide even higher quality services to
our clients.
● Consumer banking
Our group companies will provide leading-edge prod-
ucts and services according to the needs and life stage
of our retail clients. Specifically, SMBC will expand its
own line-up of consumer loan and investment prod-
ucts, and also strengthen its collaboration with SMBC
Nikko Securities in asset-management to capture
opportunities presented by the shift from savings to
investment in Japan. In addition, we will serve the
needs for business and asset succession of business
owners and landowners through the enhanced testa-
mentary trust planning and other functions of SMBC.
● Corporate banking
SMBC will continue to meet the financing and busi-
ness restructuring needs of our corporate clients,
mainly medium-sized companies and small and
medium-sized enterprises (SMEs), and thereby con-
tribute to the revitalization of Japanese economy, as
well as continue to provide tailored support to SMEs
after the expiration of SME Financing Facilitation Act.
In addition, SMBC will further enhance its research
and advisory capabilities and strengthen its ability to
support the strategy planning of globally active large
corporations from the planning stage by concentrat-
ing industry experts in the Corporate Advisory Division
which will also deploy overseas representatives to
ingly sophisticated needs.
● International banking
We will continue to strengthen our capabilities in infra-
structure finance and trade finance which demand is
expected to continue to expand around the world,
as well as in transaction banking business, including
ancillary financing, mainly in Asia where commercial
flows are increasing in step with the economic devel-
opment of the region. We will also continue our efforts
to secure stable foreign-currency funding in order to
accommodate the increase in our overseas assets.
In Asia and other rapidly growing emerging markets,
we aim to become a “globally active financial services
group with Asia as our home market” by firmly estab-
lishing a full-scale commercial banking franchise in
those markets. SMBC’s equity investment in PT Bank
Tabungan Pensiunan Nasional Tbk, a commercial
bank in Indonesia, is a good example.
◎ Strengthening our corporate infrastructure
We will further reinforce our corporate infrastructure in
line with our group-wide and global business opera-
tions by enhancing our group-wide risk-management
structure and globally developing human resources
with diverse capabilities. Furthermore, we will intensify
our commitment to diversity by more actively hiring and
promoting talented staff regardless of gender or nation-
ality. We will also continue to reinforce our compliance
and internal control system in line with the expansion
of our group-wide and global business operations to
more effectively comply with laws and regulations gov-
erning our businesses in Japan and other countries.
4
SMFG 2013 Capital and Shareholder Return Policies
profit of ¥1,030 billion and net income of ¥580 billion.
In the medium-term management plan, we have set a
Common Equity Tier 1 capital ratio (fully-loaded basis)
target of 8% as of March 31, 2014. This means that
we aim to achieve a Common Equity Tier 1 capital
ratio of approximately 1 percentage point higher than
the Basel III required level of 7% five years earlier than
the Basel III full implementation deadline of March
2019. The Common Equity Tier 1 capital ratio as of
March 31, 2013 was 8.6% compared to the targeted
8% as of March 31, 2014.
Looking ahead, Global Systemically Important
Financial Institutions (G-SIFIs) may be required to
have additional loss absorption capacity in the form
of a capital surcharge. We believe we will be able
to secure a sufficient level of capital for the pos-
sible G-SIFI capital surcharge by implementing the
initiatives in our medium-term management plan and
maintaining our globally top-level operational effi-
ciency, thereby steadily building up retained earnings.
Meanwhile, SMFG’s basic shareholder return
policy is to secure a payout ratio of over 20% on a
consolidated net income basis through the stable
and consistent distribution of profit, while enhancing
retained earnings to maintain financial soundness in
light of the public nature of our business as a bank
holding company; and to achieve sustainable growth
of enterprise value.
Regarding dividends, we increased the annual
ordinary dividend per share on common stock by ¥10
due mainly to the favorable earnings and achievement
of Common Equity Tier 1 capital ratio target of the
medium-term management plan one year ahead of
schedule. We also added a commemorative dividend
of ¥10 per share for the 10th anniversary of SMFG’s
establishment, resulting in an annual cash dividend
Financial
objectives
per share of ¥120.
For fiscal 2013, we forecast consolidated ordinary
Meanwhile, in line with our basic shareholder return
policy of securing a payout ratio of over 20% on a
consolidated net income basis, we forecast an annual
cash dividend per share for fiscal 2013 of ¥110. This
is the same as in fiscal 2012 excluding the com-
memorative dividend, and the half of which, ¥55, will
be paid as an interim dividend.
We believe that we can meet your expectations
through the initiatives we have described. We hope
that we can continue to count on your understanding
and support in the years ahead.
September 2013
Koichi Miyata
President
Sumitomo Mitsui
Financial Group, Inc.
Takeshi Kunibe
President and CEO
Sumitomo Mitsui
Banking Corporation
Overview of the medium-term
management plan (Announced May 2011)
Basic Policy
To be a globally competitive and trusted financial services group
by maximizing our strengths of Spirit of Innovation, Speed and
Solution & Execution.
Management plan for the coming three years
Medium-term Management Plan (Fiscal 2011 - Fiscal 2013)
Management
targets
(cid:127) Top quality in strategic business areas
(cid:127) A solid financial base and corporate infrastructure to
meet the challenges of financial regulations and
highly competitive environment
Steadily improve financial soundness,
profitability and growth in a balanced way
(cid:127) Achieve the level of Common Equity Tier 1 capital
ratio required for a global player
(cid:127) Enhance risk-return profile by improving asset quality
(cid:127) Aim for top-level cost efficiency among global players
(cid:127) Expand overseas business especially in Asia by
capturing growing business opportunities
Key initiatives to achieve management targets and financial objectives
Strategic
business areas
Financial consulting
for retail customers
5
Tailor-made solutions
for corporate clients
Commercial banking
in emerging markets,
especially Asia
Broker-dealer/
Investment banking
Non-asset business including
payment & settlement services
and asset management
Corporate base
(cid:127) Implement best practice in management throughout the SMFG group
(cid:127) Develop a solid corporate infrastructure to support the growing international network
(cid:127) Maximize operational efficiency
SMFG 2013
Business Overview
■ Consumer Banking
SMFG group companies work cooperatively to provide better
and highly appreciated services for individual clients.
SMBC strives to enhance its products and services to
appropriately meet the diverse needs of individual clients in
accordance with one of its corporate values of “Providing value
added services to each client.”
Asset Management
SMBC has a wide range of investment
trust products to meet the diversifying
asset management needs of its clients.
In fiscal 2012, we implemented an invest-
ment fund of publicly offered investment
trust in Japan for short-term, high-yield
corporate bonds, denominated in US
dollars. We enhanced our portfolio of
overseas publicly offered investment
trusts by implementing Australian-dollar-
denominated fund for investment in high-yield bonds in newly
emerging markets.
As for deposits in foreign currency, we added to the port-
folio, the Brazilian real fund and Chinese renminbi in April 2012
and July 2012, respectively, in order to respond to the growing
needs of clients for management of assets in foreign currencies.
Furthermore, as we received growing request from retail clients,
we began to accept in September, renminbi-denominated remit-
tances made in Japan, while accommodating management
needs of clients for investment by implementing measures to
offer preferential interest rates.
Working with SMBC Nikko Securities, SMBC continues
to offer its wide-ranging clients intermediary services for
financial products, in areas such as foreign-currency and yen-
denominated bonds. In fiscal 2012, we further expanded our
portfolio by adding a new line of products and products espe-
cially made for high-net worth individuals, to further promote the
cooperative business of the bank and securities firm.
Life Insurance and Estate
SMBC offers life insurance policies over the counter at its
branches throughout Japan. We additionally provide services
enabling our clients to request information materials without
visiting our branches, as long as they make such requests by
using ATMs or the internet. In fiscal 2012, as for single premium
type permanent life insurance products, we enhanced the port-
folio by offering new life insurance products enabling clients to
select a periodical payment plan according to their life plan, or
newly offering insurance policies guaranteeing substantial death
benefits, with functions for asset formation in the long-term.
As for level-premium insurance products, we enhanced our
products for further accommodating the “estate-related” needs
of clients by introducing foreign-currency denominated whole
life insurance and medical insurance with coverage for nursing
care. In addition, the bank meets the inheritance-related needs
of its customers by offering testamentary trust services for
6
storage and execu-
tion of wills, including
“inheritance disposi-
tion” services assist-
ing with complicated
procedures required
inheritance, or
for
“Relay of Trust to
Family”
services
enabling clients and
family to regularly receive funds.
We also began to offer in February 2013, a new deposit
product of “Support Plan for Newly Employed” especially made
for the young generation of graduated and newly employed
(mainly targeting those newly becoming
non-dependent on their family and living
independently) by offering ordinary bank
accounts with free casualty insurance
coverage. We intend to provide the
young generation with the opportunity to
consider insurance matters and needs.
Our staff at the call-center will periodically
provide information appropriate for such
newly-employed young clients with insur-
ance needs.
Consumer Loans and Settlement
We are working to develop products and
enhance our services in order to be able
to accommodate the diverse needs of
clients for housing loans with critical illness
insurance and housing loans with partial
relief for mortgage payment in the event of
natural disasters.
We also substantially improved con-
venience for clients requesting housing
loans by enabling them to complete their
applications for making either full or partial
prepayments, or changing the interest
rate to floating or fixed, by utilizing SMBC
Direct, the online banking service.
In other
improvements, SMBC
has assigned “Financing Facilitation
Consultant Experts” at all branches and
eight other locations throughout Japan
where a special department is established
for loan support services to provide consultations for clients.
For housing finance for clients affected by the Great East Japan
Earthquake, we offer housing loans with special rates, and we
also offer our existing clients consultation services on more
flexible loan repayments for those who have already taken out
SMBC housing loans. We continue to provide meticulous sup-
port for, and promptly and appropriately respond to, clients who
have difficulties making housing loan repayments.
As for SMBC unsecured consumer loans (card loans), guar-
anteed by SMBC Consumer Finance Co., Ltd.*1, the total loan
SMFG 2013
balance as of March 2013 has exceeded ¥410 billion due to the
steady increase of loans.
Further, we began to provide in February 2013, the “Life
Event Support Package” for the card loan, offering special inter-
est rates for clients who borrow from housing loan. We intend
to accommodate financial needs for
clients, who acquired housing, for major
life events such as childbirth,
education and renovation.
*1 SMBC Consumer Finance Co.,
Ltd. was formerly known as
Promise Co., Ltd. The corporate
name was changed on July 1,
2012.
Transaction Channels
As for SMBC Direct, the online banking services, we consis-
tently enhance services and improve the convenience to
accommodate the needs of clients while developing advanced
services and strengthening security.
Since August 2012, SMBC has provided the “e-Report
Service” enabling clients to be able to view various transaction
reports on SMBC Direct. Those clients who applied to receive
such service will be able to electronically view and save various
reports in PDF-format on SMBC
Direct, instead of receiving such
reports by mail.
In October 2012, SMBC
started a new service for SMBC
Direct members to be able to receive basic price information
for investment trust of their choice by e-mail, according to the
timing they prefer to receive such e-mails. There is also a noti-
fication function to inform clients when the pre-selected basic
price was reached.
Additionally, we have began offering a convenient branch
and ATM location search function and the “SMBC Application”
especially made for smart-phone users enabling clients to easily
verify account balance and make deposits, for improving conve-
nience for clients.
Furthermore, SMBC Direct made the “One-time Password
Service*2” free of charge in March 2013 for further enhancing
security for our clients.
*2 The service which enhances security for internet banking by providing
different password each time.
Our call centers, located in Tokyo, Kobe and Fukuoka for
retail clients, receive calls from online clients who prefer to speak
with our staff on important issues. The operations of these
three call centers improve our system of offering services by
telephone in areas such as consultations for asset management
and loans, direct-marketing of level-premium insurance and
providing information for financial services, by accommodating
to the lifestyle and needs of our clients.
Topics
◆ Business Jointly-Operated by SMBC and SMBC
Nikko Securities
SMBC and SMBC Nikko Securities, as the group, are
improving their capabilities to provide individual clients with
financial products and services by focusing on business
operations of intermediary services for individual clients:
financial instruments, fund wrap services, clients referrals and
banking agency services.
In October 2012, SMBC
began offering “Bank and
Trade” service, especially
made for the internet, by coor-
dinating SMBC bank account with general securities account
of SMBC Nikko Securities. Further, in November 2012,
SMBC Nikko Securities commenced offering testamentary
trust agency services for SMBC.
Additionally, the two companies continue to integrate
their solid platforms, which were built based on know-how for
consulting business, for individual businesses such as their
client base and network of offices and branches.
Specifically, each of SMBC and SMBC Nikko Securities
plans to develop business promotion model for integrating
bank and securities businesses by taking advantage of
strengths of each business, in order to optimize products and
services provided to clients. To develop this business model,
the Securities Business Collaboration Planning Department
was established in the Planning Department, Consumer
Banking Unit and it has been experimentally in operation
since May 2013.
◆ Measures to Address Customers’ Inheritance-
Related Needs
In addition to the testamentary trust services that it has
provided to date, SMBC has commenced the handling of
“inheritance disposition” services at all domestic branches
in February 2013. In March 2013, SMBC began providing
the “Relay of Trust to Family” in order to precisely meet the
inheritance needs of customers.
“Relay of Trust to Family” is a jointly
managed money trust marketed
to individuals that supplements the
principal. SMBC will continue meeting
various customer needs by enhancing
its products, services and consulta-
tion capabilities.
7
SMFG 2013
■ Services for corporate clients
Providing funding to medium-sized compa-
nies and SMEs
SMBC proactively implements appropriate measures for
finance facilitation and economic vitalization by meticulously
understanding circumstances of each client and making diverse
proposals for finance facilitation, as we strongly believe that our
social responsibilities are to proactively provide funding to meet
the needs of our medium-sized and SME clients and to support
measures for their management improvement.
Specifically, our product of “Business Select Loan,” which
offers unsecured or unguaranteed loans to clients, is being
utilized by many clients.
Additionally, in conjunction with the Business Select Loan,
as for the loans guaranteed by the National Federation of Credit
Guarantee Corporations, SMBC accommodates the funding
needs of clients by offering our specially-designed loans jointly
guaranteed by SMBC and the local credit guarantee corporation
of each region.
We continue to proactively provide funds and support the
management of medium-sized companies and SMEs which
support the Japanese economy.
Support for the establishment of new industry,
new businesses and growing company
At SMBC, a department specializing in supporting clients of
growing companies has been established at its head office.
By cooperating with SMBC Venture Capital Co., Ltd. and
SMBC Nikko Securities, we provide solutions appropriate to the
specific growth stage, such as providing loans especially made
for growing companies, supporting the initial public offering of
shares, or supporting the alliance with the major company.
In April 2012, SMBC and the NEC group jointly established
a venture fund for the purpose of supporting technology venture
companies. We have invested in companies that develop the
packaging business of next-generation semi-conductors, pro-
vide advanced solutions for the Machine-to-Machine and Mobile
Device Management, and develop advanced distributed pro-
cessing technology for the game cloud service. Further, SMBC
and the Osaka University jointly established a “Cooperative Unit
for Creating New Industry” in November 2012, for the purpose
of creating and developing new venture businesses initiated by
the Osaka University.
SMBC and the Group companies are all committed to sup-
porting growing companies while cooperatively working with
diverse external entities.
Support for IPOs (IPO Navigator)
SMBC and SMBC Nikko Securities jointly started providing
free information service exclusively for the registered members
of the “IPO Navigator” since July 2010, for consistently and
comprehensively supporting clients who are considering going
8
public. The IPO Navigator has become the one-stop platform
for enabling clients to access any necessary information for
IPO, enhanced by information provided by ten affiliated advi-
sory companies and two sponsoring companies. As of March
2013, the IPO Navigator is registered by clients of approximately
600 companies. In February 2013, SMBC and SMBC Nikko
Securities held their fifth “IPO Seminar.”
Mr. Mitsuru Izumo, the president of euglena Co., Ltd., spoke
on his “experience for listing” at the seminar, invited by SMBC
Nikko Securities, the lead manager for the euglena listing for
Mothers on the Tokyo Stock Exchange in December 2012. Mr.
Tomotaka Goji of the University of Tokyo Edge Capital (“UTEC”)
also spoke on the “Points to bear in mind for the growth of ven-
ture company.” SMBC and SMBC Nikko Securities continue to
support clients who wish to go public.
Development of solutions responding to the
corporate needs such as environment, risk
and food safety
The issues for clients, such as measures for environmental
problems of resource and energy conservation or global warm-
ing, countermeasures for natural disasters, or ensuring food
safety, are yearly becoming diversified.
SMBC developed and offered a series of products since
2006, as follows, for supporting clients who promptly respond
to such issues: 1) “SMBC-ECO Loan” which support the
measures taken by SMEs which obtained the certification for
environment management system; 2) “SMBC Environmental
Assessment Loans and Private Placement Bonds” which assess
the measures taken by clients for environment; 3) “SMBC
Environmental Assessment Loans and Private Placement
Bonds, eco Value-Up” which assess the measures taken by
clients of medium-sized companies and SMEs for environment;
4) “SMBC Sustainable Building Assessment Loans and Private
Placement Bonds” which assess environment-friendliness and
measures taken for risk management for the building owned or
to be constructed by clients; 5) “SMBC Business Sustainability
Assessment Loans and Private Placement Bonds” which assess
the measures taken by clients for business sustainability in the
event of emergencies such as earthquakes, floods, etc.; and
6) ”SMBC Food and Agriculture Assessment Loans and Private
SMFG 2013
Placement Bonds” which assess measures taken by clients for
safety and security of food, and agriculture. In 2013, SMBC
began offering “SMBC Sustainability Assessment Loans and
Private Placement Bonds” which assess the measures taken for
environment, society and governance, and appropriateness of
information disclosure.
We continue to support clients who take innovative mea-
sures by developing solutions such as the above.
Measures for finance facilitation
Basic policy
SMBC strives to provide sincere and meticulous services to
clients, facilitate funding, and enhance consultation services, in
accordance with SMBC’s “Basic Policy for Finance Facilitation.”
In particular, we put all of our efforts for facilitating finance
by providing thorough explanations for clients to feel assured
regarding our position for financing, especially after the expiry of
the SME Financing Facilitation Act (March 2013).
SME and
individual clients
● Changing terms and
conditions of a loan
● New borrowing
● Management
consultation and
management support
● Complaints and
consultation
● Corporate Business
Department
● Business Support Plaza
● Branches, etc.
Person in charge
for consultation of
Person in charge for
receiving complains
Consultation desk for
receiving complaints
Basic policy for finance facilitation
1. Conduct appropriate review of applications submitted to
apply for a new loan or request to ease loan conditions
2. Provide support appropriate to the measures taken by
clients for management consultation, management guid-
ance and management improvement
3. Strive to improve the ability to appropriately assess the
value of client’s business
4. Provide appropriate and thorough explanations to clients
for the consultation and application for new loans or for
easing loan conditions
5. Respond appropriately and adequately to clients for their
requests or complaints regarding the consultation or appli-
cation for a new loan or for easing loan conditions
6. In case that there are other relevant financial institutions
involved in the consultation for easing loan conditions or
any other requests, we maintain close liaison with such
financial institutions
System improvement
Head office and branches of SMBC continue to provide consul-
tation services in an integrated manner.
● Each department of
Middle Market/
Consumer Finance
Facilitation Department
Planning and management
of measures associated
facilitation
Information sharing and
in charge of Middle
Market/Consumer
departments, Risk
Management department
and relevant departments
● External organizations
● External experts/professionals
(cid:127) Council supporting vitalization of SMEs
(cid:127) Regional Economy Vitalization Corporation of Japan
(cid:127) Corporation supporting regeneration of businesses
affected by the Great East Japan Earthquake
(cid:127) SMBC Consulting
(cid:127)
(cid:127)
9
SMFG 2013
Support for career education
In accordance with the amendment adopted for the University
Establishment Criteria in April 2011, the “Career Education/
Guidance Program” of each university is being enhanced.
SMBC puts its efforts into connecting the “needs of career edu-
cation of universities” and “industrial affiliated needs of clients.”
Specifically, SMBC cooperates with each university to support
career education, and we also ask our clients to become
instructors for the education programs to support the program.
For instance, our client presents the business issue of “market-
ing of a new product development.” Students and the person in
charge of the company discuss in the program to jointly come
up with the proposal for resolving such issue. Our clients also
speak on the trends of industry or business.
Through this practical experience of working with participat-
ing companies, students may be able to increase their social
awareness and develop their abilities required in the society for
“working as a team, such as expressing and listening abilities,”
“the ability to think to identify an issue, and creativity.” On the
other hand, our clients appreciate unconventional concepts
and ideas of students which may give our clients new ideas or
perspectives for their businesses.
We continue to contribute to our clients’ business develop-
ment by providing assistance and support while cooperating
beyond our business framework.
Support for overseas development
As the number of clients moving into overseas markets
increases, so their need for fund procurement and management
solutions, and also for help in understanding local business
customs, cultures and systems, has grown. SMBC’s Global
Advisory Department responds, in an integrated manner, to
resolving issues for clients by transmitting overseas informa-
tion of respective economy and holding seminars prepared for
respective country in China, Asia, Europe and U.S.
We provide clients with the up-to-date information of local
conditions, relevant regulations and industrial trends. As for
clients who have already expanded their business to overseas,
we provide high quality support and solutions tailored to each
of their needs. We also support foreign exchange transactions
for clients by giving advices on their trading business or holding
seminars.
Support for management improvement, busi-
ness regeneration and business conversion
Even after the expiry of the SME Financing Facilitation Act,
SMBC continues to provide efficient financial intermediary
services and focus on management issues which clients are
faced with, and to propose solutions appropriate to respective
management issues or life phase in the client’s perspective.
We strive to improve our consultation services by spending
adequate time with the clients.
Specifically, we provide numerous and diverse loan prod-
ucts in order to accommodate the needs of clients for financ-
ing and resolving management issues; and we also provide
solutions for business referrals (as explained below), overseas
business development, or support for business succession
(please refer to p.12 for “Support for business and asset suc-
cession”). Further, we also support clients for management
improvement or business regeneration, while cooperating with
external experts/professionals*1 or external organizations*2, by
supporting measures for the plan of management improvement
or giving advices for management improvement issues such as
expense reduction or sale of assets.
*1 SMBC Consulting, certified tax accountants, certified public
accountants, etc.
*2 Council supporting revitalization of SMEs, Regional Economy
Vitalization Corporation of Japan, etc.
In particular, we continue to propose the most appropriate
solutions and provide support for execution, while cooperat-
ing with the corporation supporting regeneration of businesses
affected by the Great East Japan Earthquake or industrial res-
toration organizations, in order to provide solutions for clients
affected by the Great East Japan Earthquake.
Measures for business referrals
SMBC strives to refer or introduce new business partners
appropriate to the needs of clients by utilizing SMBC’s “busi-
ness referral service” for individually referring and introducing
clients individually, in addition to referring or introducing a group
of clients to the purchasing department of major corporations.
Under the current trend of globalization, the needs are even
more diversified such as expanding distribution channels to
a new overseas market or increasing suppliers mainly in the
emerging countries.
In fiscal 2012, SMBC started to offer the “global business
referral” service which is the business-matching with non-
Japanese companies overseas. We provide support and solu-
tions for clients’ overseas business development through the
process of business referral with non-Japanese companies
overseas. Currently, the business-referral is limited in certain
areas of Asia; however, we are in the process of expanding
the service in order to appropriately accommodate the diverse
needs of clients, through the global business-referral by taking
advantage of SMFG’s domestic and overseas network.
10
SMFG 2013
medical-related industries in Kobe city and for strategic develop-
ment of growing industry in Kita-Kyushu. In fiscal 2008, Miyagi
Prefecture became the main prefecture in Japan with which
we signed an industrial development cooperation agreement.
We continue to financially assist local governments affected
by the Great East Japan Earthquake for their restoration plan.
Furthermore, SMBC has executed a business alliance agree-
ment to support overseas businesses with THE MINATO BANK,
LTD., Kansai Urban Banking Corporation, Mie Bank, Ltd. and
six other banks.
Topics
◆ Kobe Medical Industrial City
Kobe City is promoting the “Kobe Medical Industrial City
(Kobe Cluster)” project for medical-related industries. This
project started as the restoration business after the Kobe
earthquake, and it consolidates “highly-specialized hospital
facilities,” “advanced medical research facilities,” and “sophis-
ticated computation and science facilities, as represented
by the super-computer ‘K’,” to the Port Island in Kobe. It
works on the clinical application and commercialization of
pharmaceutical products, regeneration medicine and medical
equipment. It is also a national project and designated as
one of the areas for the “Kansai Special District of Integrated
International Strategy for Innovation.”
SMBC has been deeply involved since the conceptual
phase of the “Kobe Medical Industrial City” project, and it has
participated in the project as one of the members of the local
company. In fiscal 2013, we financially supported by provid-
ing the start-up capital for the establishment of the “Kobe
minimally invasive cancer medical center,” a major medical
center for the advanced cancer medical treatment which may
significantly reduce the burdens for the cancer patient. The
development of medical industries is an important measure
taken not only for, the improvement of medical standards, but
also for vitalization of the local economy. SMBC continues to
cooperate for the promotion of the “Kobe Medical Industrial
City” project.
Enhancement of measures for the Greater
China region
Due to the economic slowdown in China, financial results of cer-
tain Japanese companies seem to be adversely affected; how-
ever, the importance of the Greater China market (PRC, Hong
Kong and Taiwan) has not declined and the company’s entry to
the market and business development seem to continue.
SMBC designates Greater China region as an important
market, and we have improved our domestic and overseas
structure to be able to integrally and efficiently provide high-
quality services, while cooperating with SMFG group compa-
nies, in order to respond to the diverse needs of clients of the
region.
In China, Sumitomo Mitsui Banking Corporation (China)
Limited (“SMBCCN”), SMBC’s subsidiary in China, became
the first Japanese bank’s subsidiary to establish a branch in
Chongqing in August 2012 in order to provide meticulous ser-
vices for clients to develop their businesses to the inland of the
mainland China.
As a result, the number of offices in the mainland China
has grown to fifteen, consisting of SMBCCN’s eight branches,
including the Shanghai Head Office, four representative offices,
and two SMBC branches*. Together with SMBC’s Hong Kong
and Taiwan branches, we have established a very adequate
office network in China.
*Representative office in Dalian and Shanghai Branch
Our South China Dept, which was established two years
ago, promptly and consistently provides information regarding
relevant regulations and trends in south China. As the needs
of clients for renminbi-related services are growing steadily,
we thoroughly respond to such needs by cooperating with the
transaction business department established in Tokyo in April
2012.
Our domestic and overseas offices integrally continue to fur-
ther enhance their services provided in Greater China, in order
to appropriately respond to the confidence of clients.
Measures taken for vitalization of local
regions in Japan
Measures taken jointly with local government entities
and regional financial institutions
As the economy changes, the responsibilities and roles of local
government entities and regional financial institutions are also
diversifying. Consequently, the expectation for the support for
local industrial development and overseas development of local
companies continues to increase. The extensive network over-
seas and accurate and timely information collection will become
necessary for such local government entities and regional finan-
cial institutions. To serve such needs, we are forming partner-
ships with local governments and regional financial institutions
using SMBC group networks within Japan and overseas to
provide a wide range of services.
SMBC has been proactively involved since the concep-
tual phase of the industrial development for accumulation of
11
SMFG 2013
■ Services for Business Owners,
High-Net Worth Individuals and
Employees
Private Advisory Division
SMBC’s Private Advisory Division (“PAD”) provides services for
both individuals and corporate clients by working with other
SMBC Group companies and alliance partners.
To ensure that business owners and high-net worth indi-
viduals can facilitate succession of their important businesses
and assets, PAD offers the following services: (1) support of
business and asset transfers for which we present proposals
and provide information based on our extensive experience and
knowledge accumulated over years, and the additional expertise
provided through alliance partners with major tax accounting
firms; (2) asset management and support services which pro-
vide comprehensive financial services tailored to meet the finan-
cial asset needs of high-net worth individuals; and (3) corporate
employees business which support the HR and financial strat-
egies of our corporate clients to assist with the development
and management of benefit programs and defined-contribution
pension systems.
Business owners
Customers
High-net worth individuals
Heads of wealthy families
Sumitomo Mitsui Financial Group
Sumitomo Mitsui Banking Corporation
Corporate Business Office
Branches
Private Advisory Department
Business
succession
needs
Asset
succession
needs
Asset
management
needs
Financial benefit
program needs
Revised
defined-contribution
pension plan needs
provide our clients with up-to-date information and advice. We
are also asked to provide consultations from many business
owners and high-net worth individuals.
Support for Asset Management
Understanding and sharing client’s attitude toward financial
assets, we offer comprehensive financial advices on asset allo-
cation and management. In June 2010, SMBC, SMBC Nikko
Securities Inc. and Barclays PLC of Great Britain collaborated
to establish the “SMBC Barclays Department” in SMBC Nikko
Securities Inc. for better accommodating the diverse asset-
management needs of our clients.
Specifically, we offer products and asset-allocation propos-
als appropriate for our clients and their portfolio performance by
efficiently utilizing Barclays’ global research capabilities and the
Financial Personality Assessment (“FPA”) based on behavioral
economics (the tool used for understanding investment prefer-
ences and behaviors), and also taking advantage of the diverse
products and services created by the product development
team in the SMBC Barclays Department.
SMBC Group
Partnership
(cid:127) Provide wide range of comprehensive
(cid:127) Provide wide range of comprehensive
life-plan services
life-plan services
(cid:127) Propose asset management using
(cid:127) Propose asset management using
SMBC-transacted instruments
SMBC-transacted instruments
Take stake
0.66% stake
(as of July 2013)
SMBC Barclays
Department
Customers
(cid:127) Provide array of
(cid:127) Provide array of
asset management
asset management
services leveraging
services leveraging
Barclays’ expertise
Barclays’ expertise
SMBC Nikko Securities
SMBC Barclays Department
SMFG Group
companies
Outside specialists (major tax accounting firms and other professionals)
Barclays PLC
Topics
Support for Business and Asset Succession
PAD presents customized proposals for clients who may be
concerned or have problems with succession of their busi-
nesses and assets. We also offer a variety of seminars to
In 2012, SMBC Barclays Department
was named “Best Private Bank Japan”
by The Asset’s “Investment Award.”
Topics
In April 2013, SMBC consolidated and enhanced branches’
assistance and support functions associated with its
inheritance-related services to PAD. Wtih such enhancement,
we will be able to comprehensively accommodate our cor-
porate clients and high-net worth individual clients for their
needs for business and assets succession and any other
inheritance-related needs such as testamentary trust. SMBC
also strives to improve the quality of its consultation services
by facilitating its information sharing and knowledge accumu-
lation within the bank.
Life Planning Support for Employees
Changes in the social environment, such as the increasing aged
population and greater mobility in employment and diversifica-
tion in life planning, may substantially affect corporate clients’
management strategies.
PAD supports clients in creating and managing employees’
financial benefit programs and defined-contribution pension
plans by using the products and services offered
by the bank and its affiliated companies for
responding to personnel and
financial issues that corporate
clients are faced with.
12
SMFG 2013
■ Investment Banking
SMFG offers and provides the most appropriate financial
products and comprehensive solutions for our clients’ diverse
needs, such as fund raising and fund management, M&A, and
risk hedging, in order to assist their business development or
enhancement of their corporate value. This is achieved by con-
solidating resources of the Group companies, including SMBC
and SMBC Nikko Securities Inc.
Cooperation with SMBC Nikko Securities
As a core securities brokerage within the Group, SMBC Nikko
Securities has been expanding both retail and wholesale
operations in partnership with the bank. Through its securities
intermediary and business introduction services for individuals,
it is developing retail transactions through joint bank-brokerage
formats. Our entire Group continues to respond to offer services
appropriate for the needs of clients by taking advantage of
strengths of both SMBC and SMBC Nikko Securities.
In wholesale operations, the Group was ranked 4th in the
“league table” published by Thomson Reuters for fiscal 2012
(“Global Equity & Equity-Related: Bookrunner”) with a market
share of 11.9%. It also ranked 4th in the “M&A advisory services
category for publicly announced mergers involving Japanese
companies,” with a market share of 17.8% (Thomson Reuters).
It ranked 2nd in the ranking of the “25th Analysts Votes” for the
Nikkei Veritas analysts. As for overseas operations, SMBC Nikko
Securities’ Singapore office has made steady progress, includ-
ing the launch of brokerage services for Japanese stocks and
M&A advisory services. The number of corporate client referrals
made by the bank to SMBC Nikko Securities is increasing, due
to the measures taken for corporate clients. In fiscal 2012, the
total number of client referrals made reached to approximately
4,300 (an increase of 14% compared to the previous fiscal
year). Our entire Group continues to integrally work to enhance
services provided to corporate clients.
SMBC Nikko Securities: Medium-Term
Management Plan (during fiscal years of 2013
to 2015)
SMBC Nikko Securities developed its medium-term manage-
ment plan starting fiscal 2013. We strive to provide value-added
services to clients based on the concepts of “Speed and Scale”
by moving forward from the “Framework Development” phase
to the “Growth” phase, as set forth in the plan.
• Retail Unit: Expand the client base by the aggressive injection
of resources and strategy of integrating banking and securities
business operations.
• Wholesale Unit: Realization of competitive front operation
structure; increase of earning capacity for sales and trad-
ing businesses by the aggressive injection of management
resources; selective and effective overseas business expan-
sion by taking advantage of the banking and securities busi-
ness cooperation and alliance.
• Other: Sophistication of the management infrastructure, stra-
tegic injection of systems and human resources, acceleration
of human resource development.
SMBC Nikko Capital Markets Limited
London
Luxembourg
SMBC Nikko Bank (Luxembourg) S.A.
SMBC Nikko Investment Consulting (Shanghai) Limited
New York
SMBC Nikko Securities America, Inc.
Shanghai
Hong Kong
SMBC Nikko Securities (Hong Kong) Limited
SMBC Nikko Securities (Singapore) Pte. Ltd.
Singapore
Jakarta
P.T. Nikko Securities Indonesia
As of April 1, 2013
Sydney
SMBC Nikko Capital Markets Limited
13
SMFG 2013
Measures for growth areas
In the emerging countries in Asia, the needs for infrastructure
and development are increasing. SMBC is strengthening its
measures for infrastructure financing by cooperating with the
government-affiliated financial institutions which financially
supports infrastructure projects in Singapore and Indonesia. In
June 2013, we successfully established an infrastructure fund
specifically made for investment in India, together with Kotak
Mahindra group, one of India’s largest private financial groups,
the Brookfield Asset Management Inc., a major asset manage-
ment company in Canada, and the Japan Bank for International
Cooperation.
We continue to provide high-value added services in order
to contribute to the improvement of infrastructure and economic
development of each country by utilizing the expertise and
knowledge accumulated especially in the project finance area.
Our Growth Industry Cluster Department identifies four
fields of “renewable energy,” “environment,” “water” and
“natural resources” as growing fields to promote creating new
business opportunities for clients. It supports the solar power
business and it researches smart city development overseas
and wastewater treatment of industrial complexes by utilizing
the accumulated knowledge and network of the “industry-
government-academia.” It also contributes to the expansion
of clients’ businesses by further venturing into “medical” and
“nursing care” fields.
■ International Banking
SMFG strives to provide high value-added services tailored
to the specific local needs of its globally-operating clients,
including business corporations, financial institutions, govern-
mental organizations and public entities, mainly through the
International Banking Unit of SMBC.
SMBC strives to become the global commercial bank which
is capable of consistently providing up-to-date information
and services by closely cooperating with other SMFG group
companies and overseas subsidiaries throughout the world,
concentrating mainly on the three regional divisions of Asia-
Pacific, Americas and Europe.
Enhancement of our competitive products
In recognition of its strengths in project finance, SMBC was
awarded the Global Bank of the Year 2012 by Project Finance
International. It also placed No. 1 in the Asia Syndicated
Loan Mandated Arrangers ranking (all international currency
syndicated and club loans, Thomson Reuters), and was highly
rated as a foreign bank in many Asian countries in the Cash
Management Poll carried out by ASIAMONEY. It was No. 1
among Japanese banks for the seventh successive year. As
such achievements show, SMBC is making its presence felt
across the board.
Topics
◆ Project Finance
In the project finance field, SMBC was awarded the “Global Bank
of the Year 2012”* for being the most successful bank in project
finance. This was the Bank’s second time winning this award as
a result of our specialized and innovative project finance services,
especially for the energy and resource development businesses
around the world.
* The “Global Bank of the Year” is the prestigious award
given by “Project Finance International” magazine pub-
lished by Thomson Reuters.
14
SMFG 2013
Expansion of overseas networks
SMBC is expanding overseas networks, to further enhance
services for Japanese corporate clients operating overseas
and strengthen its capability to develop banking businesses in
emerging and growth markets.
Date of
establishment
Country
May 2012
Peru
Lima Representative Office
August 2012
Myanmar
Yangon Representative Office
August 2012
China
Sumitomo Mitsui Banking
Corporation (China) Limited
Chongqing Branch
March 2013
India
New Delhi Branch
April 2013
Australia
Perth Branch
May 2013
Chile
Santiago Representative Office
May 2013
Thailand
Chonburi Exchange Office
Strengthening relationships with local finan-
cial institutions
In order to fully accommodate the needs of clients in emerg-
ing and growth markets, SMBC continues to strengthen its
relationships with local financial institutions in overseas market.
In May 2012, we executed a memorandum of understanding
with the Kanbawza Bank, the largest private bank in Myanmar,
for technical assistance and support; and in August 2012, we
also executed a memorandum for business alliance with the
Acleda Bank Plc., the largest private bank in Cambodia, for
cooperatively working on businesses in Cambodia. In February
2013, we executed an agreement for cooperation with Garanti
Bankasi A.S., one of the largest banks in Turkey, for financial
advisory services for guaranteed or insured projects and project
finance, and also for business cooperation for financial services
provided for Japanese clients.
In India, where a further growth is expected in the foresee-
able future, SMBC and SMBC Nikko Securities entered into an
alliance in December 2012 with the investment bank of Kotak
Mahindra Group, a leading comprehensive financial services
group in India, for providing advisory services for cross-border
M&A between Japanese and Indian companies.
Enhancing measures for businesses in emerg-
ing markets
In April 2013, SMBC established the Emerging Markets
Business Division for strategic planning and business promo-
tion, in order to further strengthen its commitment to the rap-
idly growing emerging markets especially Asia, and to boldly
develop as the full-line commercial bank with Asia as its mother
market. Also in April 2013, we established the Global Business
Planning Department in SMFG for strengthening collaboration
among Group companies in overseas businesses mainly in
emerging markets.
Topics
◆ Investment in local Indonesian bank
On May 8, 2013, SMBC publicly announced that it plans to
acquire up to 40% shares of PT bank Tabungan Pensiunan
Nasional Tbk, upon approval by the Indonesian authorities.
The bank has a solid retail business in Indonesia which is
expected to maintain a high sustainable growth in view of its
world’s 4th largest population and expanding middle class. In
this and other ways, we will continue to diversity our business
in Asia.
◆ Elected to become the “Financial Holding
Company” in the United States of America
On May 7, 2013, SMFG and SMBC were elected by the
Board of Governors of the Federal Reserve System to offi-
cially become Financial Holding Company (FHC) pursuant
to the Bank Holding Company Act in the U.S., enabling us
to significantly expand the scope of services we provide in
the U.S., including the underwriting and trading of securities
and other investment banking services. Our Group continues
to provide better financial services in the U.S., the leading
financial market in the world.
15
SMFG 2013
■ Treasury Markets
Topics
◆ Expanded Offerings of Currencies of Asia and
Other Emerging Markets
In order to meet our clients’ market transactional needs,
we propose diverse hedging strategies for foreign curren-
cies, mainly Asian and other emerging-market currencies.
We also brief our clients on the latest changes affecting
foreign-exchange transactions through seminars conducted
by economists specialized in Asian financial markets and
through various foreign-exchange-related tools that we pro-
vide to our clients.
◆ Expanded Online Foreign Exchange Transaction
Services
We have upgraded the i-Deal system, which allows our
clients to execute their foreign exchange transactions on
the Internet. In order to ensure attentive handling for clients’
limit orders, we have substantially improved the convenience
for transactions by enhancing the leave orders function and
strengthening the price quote function.
■ Transaction Banking Business
Strengthening Transaction Banking Business
At SMBC, the “Transaction Business Division,” which con-
sists of “Global Advisory Department,” “Transaction Banking
Department,” “Global Transaction Banking Department” and
“Asset Finance Department,” is being established in order to
integrally and flexibly provide products and services for appro-
priately accommodating the needs for transactions, trade
finance and financing associated with clients’ commercial
distribution.
SMFG and SMBC established the “Transaction Business
Planning Department” in order to strengthen functions of stra-
tegic and business planning for the entire Transaction Banking
Business and also improve the settlement system and infra-
structure, in terms of mid-to-long term and cross-departmental
plan for the Transaction Banking Business.
We, SMFG, integrally support transaction banking busi-
ness for our domestic and overseas clients under this new
framework.
Through the Treasury Unit of SMBC, the Group offers higher
value-added services to meet further sophisticated and diverse
needs of its clients for transactions in the money, foreign
exchange, bond and derivative markets.
More Solutions and Services for Clients’
Market Transactions
SMBC’s Treasury Unit offers solutions appropriate for the
market transactional needs of its clients through its network in
Japan and overseas by working with branches to present to
its corporate clients with pertinent proposals for such as hedg-
ing transactions, reflecting the shifting trends in the financial
markets. The Unit also continues to improve the functions of
i-Deal, a system which allows our clients to execute their foreign
exchange transactions on the Internet. It will continue to support
clients by meeting their market transactional needs and offering
the highest level of services in the industry.
ALM and Trading Operations
The Treasury Unit strives to ensure sound Asset-Liability
Management (“ALM”) and stable earnings by comprehensively
controlling the balance of assets, such as loans’ and liabilities’
including deposits, through ALM operations. The Unit is com-
mitted to maximizing its earnings in trading operations by the
accurate assessment made on the trend of the global financial
market by experts of diverse products such as interest-rate,
foreign-exchange and commodity derivatives.
Customers
Corporate Business Offices, Branches
Treasury Unit
Planning Dept.
Treasury Marketing Dept.
Enhance customer convenience by improving our services
Planning and research
Transactions with customers
Customer order flow
Trading Dept.
Efficient operations
based on
order-initiated trades
and ALM hedging
Foreign exchange
transactions
Derivative
transactions
Bond
transactions
CD, CP
transactions
ALM
operations
Deposits
Loans
Bonds
Alternative
investments
Treasury Dept.
International
Treasury Dept.
Precise ALM
operations and
liquidity
management
Trading
ALM (Asset Liability Management)
Fund and bond transactions
Interbank Market
16
SMFG 2013
Transaction Business
Clients
Identifying needs
Small and Medium
Corporations
Front office operations
Large Corporations
Global Corporations
Global Supply Chain
Finance Dept.
Providing information,
solutions
Transaction Business Division
Global Advisory Dept.
(Foreign exchange, overseas business advisory services)
Global Transaction Banking Dept.
Overseas transaction solution, global fund management services
Transaction Banking Dept.
Domestic exchange, domestic transaction solution services
Asset Finance Dept.
Transaction financing, SCF planning and promotion support services
I
n
t
e
g
r
a
t
e
d
m
a
n
a
g
e
m
e
n
t
Collaboration
Transaction Business Planning Dept.
Transaction-related departments/
Transaction-related group companies
Topics
◆ Establishment of the Global Supply Chain Finance
Department
In April 2013, SMBC established the “Global Supply Chain
Finance Department” in Global Trade Finance Department to
strengthen the promotion system for finance business associ-
ated with the transactions in overseas. We will appropriately
respond to the diverse needs of clients who globally conduct
their businesses, by further enhancing cooperation with each
department of transaction business division and providing
the supply-chain finance especially focused on commercial
distribution.
Strengthening Transaction Banking Products
to Respond to Clients’ Needs
SMBC is enhancing transaction banking products to respond to
domestic and overseas clients’ transactions and cash manage-
ment needs.
We continue to improve and enhance electronic bank-
ing services, for the “PC Bank Web21” and a new means of
settlement of “Densai Net” in order to support our clients’ daily
cash management, “Global e-Trade Service” in order to sup-
port foreign exchange and trade transactions in Japan, and
“SMAR&TS” in overseas etc.
We also continue to strengthen our support for our clients in
Japan and overseas by providing high value-added information;
providing the system to support cash and financial management
for the corporate group; improving foreign currency transactions
including renminbi; and allocating specialized professionals.
High Value-Added Services integrally provided
by SMFG
SMFG works at providing high value-added services with
respect to the transaction banking business of clients.
The services provided by SMBC Finance Service are mainly
the “Convenience store’s payment collection agency business”
and “Collection agency service (account transfer payment).” The
handling volumes for these services are the largest in Japan.
On the other hand, as for yearly expanding EC market, we
provide diverse settlement solutions as one of core companies
in charge of transaction banking business for SMFG, by provid-
ing the “Settlement Station” which collectively manages multiple
means of settlements.
Further, Financial Link integrally provides “SMFG-BPO
Service” (BPO: Business Process Outsourcing) by appropriately
accommodating the substantial needs for outsourcing service
associated with the fund collection and payment.
Enhancing each Settlement System and
Settlement Infrastructure
It is imperative that we appropriately enhance the settlement
system and settlement infrastructure which support the provi-
sion of secure settlement services for our clients. We are actively
involved in various industrial initiatives, such as SWIFT* and
BOJ-Net. We also engage in the Japanese Government Bond
settlement cycle reform to reduce settlement-related risks.
* Society for Worldwide Interbank Financial Telecommunication
A member-owned cooperative that provides the communica-
tions platform connected more than 10,000 financial institu-
tions in 210 countries.
Group Companies mainly associated with Settlement
Corporate Name:
Business Description:
Establishment Date:
Location of Head Office: 5-27, Mita 3-chome, Minato-ku,
Tokyo
SMBC Finance Service Co., Ltd.
Collecting agent, factoring business
December 5, 1972
Representative Director: Kazuhiko Kashikura
(Appointed on June 28, 2013)
Number of Employees: 422
Corporate Name:
Business Description:
Financial Link Company, Limited
Data processing service and consultation
business
April 1, 2004
Establishment Date:
Location of Head Office: 1-11, Shinbashi 3-chome, Minato-ku, Tokyo
Representative Director: Koichi Okamura
Number of Employees: 22
17
SMFG 2013
Group Companies (as of March 31, 2013)
The companies of the Sumitomo Mitsui Financial Group (SMFG) offer a
diverse range of financial services, centered on banking operations, and
including leasing, securities, consumer finance, system development and
information services.
Business Mission
• To found our own prosperity on providing valuable
services which help our customers to build their
prosperity
• To create sustainable value for our shareholders
founded on growth in our business
• To provide a challenging and professionally reward-
ing work environment for our dedicated employees
www.smfg.co.jp/english/
Company Name: Sumitomo Mitsui Financial Group, Inc.
Business Description:
Management of banking subsidiaries (under the stipulations of Japan’s Banking
Act) and of non-bank subsidiaries, as well as the performance of ancillary functions
Establishment: December 2, 2002
Head Office: 1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan
Chairman of the Board: Masayuki Oku
President: Koichi Miyata
(Concurrent Director at Sumitomo Mitsui Banking Corporation)
Capital: ¥2,337.8 billion
Stock Exchange Listings:
Tokyo Stock Exchange (First Section)
Osaka Securities Exchange (First Section)
Nagoya Stock Exchange (First Section)
Note: American Depositary Receipts (ADRs) are listed on the New York Stock
Exchange.
SUMITOMO MITSUI Banking Corporation
SUMITOMO MITSUI Banking Corporation
www.smbc.co.jp/global/index.html
Sumitomo Mitsui Banking Corporation (SMBC)
was established in April 2001 through the
merger of two leading banks: The Sakura
Bank, Limited, and The Sumitomo Bank,
Limited. Sumitomo Mitsui Financial Group, Inc.,
was established in December 2002 through
a stock transfer as a bank holding company,
and SMBC became a wholly owned subsidiary
of SMFG. In March 2003, SMBC merged with
The Wakashio Bank, Ltd.
SMBC’s competitive advantages include a
strong customer base, the quick implementa-
tion of strategies, and an extensive lineup of
financial products and services that leverage
the expertise of strategic Group companies in
specialized areas. SMBC, as a core member
of SMFG, works together with other members
of the Group to offer customers highly sophisti-
cated, comprehensive financial services.
Company Name: Sumitomo Mitsui Banking Corporation
Business Profile: Banking
Establishment: June 6, 1996
Head Office: 1-2, Marunouchi 1-chome, Chiyoda-ku,
Tokyo, Japan
President and CEO: Takeshi Kunibe (Concurrent
Director at Sumitomo Mitsui
Financial Group)
Number of Employees: 22,569
Number of branches and other business locations:
In Japan:
Branches:
1,554*
505
(Including 46 specialized deposit account branches)
151
Sub-branches:
Banking agencies:
4
Offices handling non-banking business: 23
871
Automated service centers:
36
Overseas:
16
Branches:
12
Sub-branches:
8
Representative offices:
* The number of domestic branches excludes ATMs located
at the business sites of companies and at retail convenience
stores. The number of overseas branches excludes overseas
subsidiaries.
Credit Ratings (as of June 30, 2013)
Moody’s
Standard & Poor’s
Fitch Ratings
R&I
JCR
Long-term Short-term
P–1
A–1
F1
a–1
J–1+
Aa3
A+
A–
AA–
AA
Financial Information (Consolidated basis, years ended March 31)
2013
Billions of yen
2011
2012
2010
For the Year:
Ordinary income .....
Ordinary profit .......
Net income (loss) ....
At Year-End:
¥8,257.0
Net assets...............
Total assets ............ 143,203.1
¥2,810.6
928.7
734.5
¥2,687.9
857.9
533.8
¥2,711.3
751.2
450.8
¥2,579.9
557.7
332.4
¥7,276.7
138,251.6
¥6,983.1
132,715.6
¥6,894.5
120,041.3
Sumitomo Mitsui Finance and Leasing
Company, Limited (SMFL) was formed in
October 2007 as a result of the merger
of SMBC Leasing Company, Limited and
Sumisho Lease Co., Ltd., striving to become
one of the top leasing companies in Japan
in terms of both quantity and quality. SMFL
meets the diversifying needs of our clients
by consolidating and leveraging the client
portfolios and expert knowledge of the bank-
affiliated leasing company, SMBC Leasing
Company and the trading-firm-affiliated leas-
ing company, Sumisho Lease Company.
In June 2012, SMFL acquired a glob-
ally renowned aircraft leasing company, as
part of our progression to a new stage
of growth. Through provision of global
18
www.smfl.co.jp/english/
leasing and other financial solutions, SMFL
aims to establish a reputation for unrivaled
excellence.
Credit Ratings (as of June 30, 2013)
R&I
JCR
Long-term Short-term
a–1
J–1+
A+
AA–
Financial Information (Years ended March 31)
2013
Billions of yen
2011
2012
2010
For the Year:
Leasing transaction
volume ....................
Operating revenue ....
Operating profit ........
¥855.1
754.6
48.6
¥770.9
816.8
59.4
¥800.8
812.8
50.2
¥733.6
894.7
43.8
Company Name: Sumitomo Mitsui Finance and
Leasing Company, Limited
Business Profile: Leasing
Establishment: February 4, 1963
Head Office:
Tokyo Head Office: 3-9-4, Nishi-Shimbashi, Minato-ku, Tokyo
Osaka Head Office: 3-10-19, Minami-Semba, Chuo-ku, Osaka
President & CEO: Yoshinori Kawamura
Number of Employees: 1,495
SMFG 2013
Company Name: SMBC Nikko Securities Inc.
Business Profile: Securities services
Establishment: June 15, 2009
Head Office: 3-1, Marunouchi 3-chome,
Chiyoda-ku, Tokyo
President & CEO: Tetsuya Kubo
(Appointed on April 1, 2013)
Number of Employees: 7,541
www.smbcnikko.co.jp/en
Credit Ratings (as of June 30, 2013)
Moody’s
Standard & Poor’s
R&I
JCR
Long-term Short-term
P–1
A–1
a–1+
—
A1
A+
AA–
AA
Financial Information (Years ended March 31)
2013
2012
2011
Billions of yen
2010
*1
*2
For the Year:
Operating
revenue ........... ¥280.5
Operating
income ............
72.7
¥233.6
¥218.6
¥85.6
¥104.9
39.9
38.5
20.9
23.5
*1 Formerly Nikko Cordial Securities (1H)
*2 Nikko Cordial Securities, June 2009 (expenses related
to preparatory costs prior to the start of operations were
posted during the period from June to September)
www.smbc-friend.co.jp
(Japanese only)
Company Name: SMBC Friend Securities Co., Ltd.
Business Profile: Securities services
Establishment: March 2, 1948
Head Office: 7-12, Kabuto-cho, Nihonbashi,
Chuo-ku, Tokyo
President & CEO: Koichi Danno
Number of Employees: 1,929
(Appointed on June 24, 2013)
Financial Information (Years ended March 31)
For the Year:
Operating revenue ...
Operating profit ......
2013
¥59.6
18.0
Billions of yen
2011
2012
¥47.5
8.3
¥53.2
10.2
2010
¥67.4
22.7
SMBC Nikko Securities Inc. (formerly Nikko
Cordial Securities Inc.), which was estab-
lished in July 1918, has developed solid
relationships of trust with its individuals and
corporate clients over the last nine decades.
It became a member of the SMFG Group
in October 2009. In April 2011, its corpo-
rate name was changed to SMBC Nikko
Securities from Nikko Cordial Securities.
Consistently working closely with SMBC,
SMBC Nikko Securities provides comprehen-
sive and highly sophisticated securities and
investment banking services.
As a core member of SMFG, SMBC Nikko
Securities strives to become the leading
securities and investment banking company
in Japan.
SMBC Friend Securities Co., Ltd. is a securi-
ties company with one of the best financial
foundations and efficient operations in the
industry, and provides a full range of securi-
ties services focusing mainly on retail clients.
SMBC Friend Securities provides highly effi-
cient nationwide network operations offering
services closely tailored to the needs of its
clients and the communities while operating
a new business model of online financial con-
sulting services.
SMBC Friend Securities will continue
to develop consistently toward its goal of
becoming “one of the leading Japanese
securities companies in the retail securities
market,” offering high-quality products and
services accommodating the needs of its cli-
ents and building trust for its clients.
As the pioneer in the issuance of the Visa
Card in Japan and a leader in the domestic
credit card industry, Sumitomo Mitsui Card
Company, Limited, enjoys the strong support
of its many customers and plays a major role
as one of the strategic businesses of SMFG.
Leveraging its strong brand image and its
excellent capabilities across a wide range of
card-related services, the company provides
settlement and financing services focused
around providing credit services that meet
customer needs. Through its credit card busi-
ness operations, the company aims to actively
contribute to the realization of comfortable
and affluent consumer lifestyles and make fur-
ther dramatic advances as a leading brand in
its industry sector.
Company Name: Sumitomo Mitsui Card
Company, Limited
Business Profile: Credit card services
Establishment: December 26, 1967
Head Office:
Tokyo Head Office: 1-2-20, Kaigan,
Minato-ku, Tokyo
Osaka Head Office: 4-5-15, Imab ashi,
Chuo-ku, Osaka
President & CEO: Hideo Shimada
Number of Employees: 2,353
www.smbc-card.com
(Japanese only)
Credit Ratings (as of June 30, 2013)
R&I
JCR
Long-term Short-term
a–1+
J–1+
AA–
AA–
Financial Information (Years ended March 31)
2013
Billions of yen
2011
2012
2010
For the Year:
Revenue from credit
card operations ........ ¥8,194.6
185.6
Operating revenue ......
Operating profit ..........
44.7
At Year-End:
Number of cardholders
(in thousands) ...........
22,400
¥7,560.6
182.2
43.1
¥6,896.2
185.2
32.6
¥6,209.0
183.5
24.3
21,647
20,770
20,504
19
SMFG 2013 www.cedyna.co.jp/english/
Cedyna Financial Corporation was formed in
April 2009 as a result of the merger of OMC
Card, Inc., Central Finance Co., Ltd. and
QUOQ Inc., consolidating their client bases,
marketing capabilities and expert knowledge.
As a member of SMFG, it strives to become
“the number one credit card business entity
in Japan” by closely working with Sumitomo
Mitsui Card.
Concurrently, as a leading consumer
finance company, it also provides the highest
level of service for diverse consumer finan-
cial needs including credit cards, consumer
credit, and solution marketing.
Company Name: Cedyna Financial Corporation
Business Profile: Credit card services, consumer
credit
Establishment: September 11, 1950
Head Office:
Head Office: 3-23-20 Marunouchi, Naka-ku,
Nagoya
Tokyo Head Office: 2-16-4 Konan, Minato-ku,
Tokyo
President & CEO: Satoshi Nakanishi
(Appointed on June 28, 2013)
Number of Employees: 2,776
Credit Ratings (as of June 30, 2013)
JCR
Long-term Short-term
J–1
A+
Financial Information (Years ended March 31)
For the Year:
Operating revenue ......
Operating profit ..........
At Year-End:
Number of cardholders
(in thousands) ................
2013
Billions of yen
2011
2012
2010
¥164.0
13.4
¥176.2
(27.6)
¥203.2
0.8
¥223.9
(40.8)
19,480
21,091
22,513
24,933
Since its establishment in 1962, with the original
goal of striving to be the best in offering innova-
tive financial services for consumers, Promise
Co., Ltd., currently known as SMBC Consumer
Finance Co., Ltd., has developed convenient
loan products for individuals to accommodate
to the changing times and has created an
appropriate system for offering loan consulta-
tion services and executing loan agreements.
Based on a corporate philosophy “Be
appreciated by customers and cooperate
with society to realize mutual harmony and
benefit together with employees,” SMBC
Consumer Finance, as a member of SMFG,
will continue to develop its specialized ser-
vices in pursuit of sustainable growth.
www.smbc-cf.com/english/
Credit Ratings (as of June 30, 2013)
Long-term Short-term
R&I
JCR
A
A–
Financial Information (Years ended March 31)
—
—
2010
Billions of yen
2011
2012
¥172.2
(166.6)
¥187.5
(54.1)
¥212.7
11.7
For the Year:
Operating revenue ....
Operating profit ........
2013
¥164.6
42.3
Company Name: SMBC Consumer Finance Co., Ltd.
Business Profile: Consumer finance business
Establishment: March 20, 1962
Head Office: 1-2-4, Otemachi, Chiyoda-ku, Tokyo
President & CEO: Ryoji Yukino
Number of Employees: 1,867
The Japan Research Institute, Limited (JRI),
an intelligence engineering company, pro-
vides high value-added information system,
consultation and think-tank services. In addi-
tion to providing financial consultation ser-
vices on management reform, IT, the planning
and development of strategic information
systems and outsourcing, it also conducts
diverse activities including domestic and
international economic research and analy-
sis, policy recommendations and business
incubation.
Company Name: The Japan Research Institute,
Limited
Business Profile: Systems engineering, data
processing, management
consulting, think-tank services
Establishment: November 1, 2002
Head Office:
Tokyo Head Office: 2-18-1 Higashi-Gotanda,
Shinagawa-ku, Tokyo
Osaka Head Office: 2-2-4, Tosabori,
Nishi-ku, Osaka
President & CEO: Junsuke Fujii
Number of Employees: 2,136
www.jri.co.jp/english/
Financial Information (Years ended March 31)
For the Year:
Operating revenue ....
Operating profit ........
2013
¥96.2
1.8
Billions of yen
2011
2012
¥87.5
0.8
¥84.8
1.5
2010
¥81.7
0.9
20
SMFG 2013 Financial Highlights
Sumitomo Mitsui Financial Group
◆ Consolidated
Year ended March 31
For the Year:
2013
2012
Total income ................................................................
Total expenses .............................................................
Net income (loss) .........................................................
Comprehensive income ...............................................
¥ 4,326,809
3,262,775
794,059
1,458,107
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Risk-monitored loans ...................................................
Reserve for possible loan losses .................................
Net unrealized gains (losses) on other securities .........
Number of employees ..................................................
¥ 8,443,218
148,696,800
1,687,049
928,866
1,121,598
64,635
Selected Ratios:
Capital ratio ..................................................................
Total capital ratio (International Standard) ...................
Tier 1 capital ratio (International Standard) ..................
Common equity Tier 1 capital ratio
(International Standard) ..............................................
Return on Equity ..........................................................
Price Earnings Ratio .....................................................
/
14.71%
10.93%
9.38%
13.74%
6.44x
Per Share (Yen):
Net assets ....................................................................
Net income (loss) .........................................................
Net income — diluted .................................................
¥4,686.69
586.49
585.94
¥ 3,973,075
3,020,108
518,536
665,232
¥ 7,254,976
143,040,672
1,804,951
978,933
474,984
64,225
16.93%
/
/
/
10.27%
7.28x
¥3,856.37
374.26
373.99
Millions of yen
2011
¥ 3,862,660
3,035,346
475,895
413,375
¥ 7,132,073
137,803,098
1,646,369
1,058,945
370,899
61,555
16.63%
/
/
/
9.76%
7.68x
¥3,533.47
336.85
336.78
2010
2009
¥ 3,184,688
2,626,590
271,559
803,705
¥ 7,000,805
123,159,513
1,529,484
1,068,329
586,414
57,888
15.02%
/
/
/
7.63%
12.44x
¥3,391.75
248.40
244.18
¥ 3,556,536
3,527,040
(373,456)
—
¥ 4,611,764
119,637,224
1,586,317
1,077,852
(33,176)
48,079
11.47%
/
/
/
—%
—x
¥2,790.27
(497.39)
—
Notes: 1. “Net unrealized gains (losses) on other securities” represent the difference between the market prices and acquisition costs (or amortized costs) of “other
securities.” In principle, the values of stocks are calculated using the average market prices during the final month. For details, please refer to page 26.
2. “Number of employees” has been reported on the basis of full-time workers. “Number of employees” includes locally hired overseas staff members but
excludes contract employees and temporary staff.
3. For the calculation of consolidated comprehensive income for fiscal 2009, SMFG has retroactively adopted the “Accounting Standard for Presentation of
Comprehensive Income” (ASBJ Statement No. 25, issued on June 30, 2010).
4. SMFG has retroactively adopted the “Guidance on Accounting Standard for Earnings per Share,” (ASBJ Guidance No. 4) to “Net income — diluted” per
share for fiscal 2010. This change has a little impact on the calculation of diluted net income per share.
21
SMFG 2013
◆ Nonconsolidated
Year ended March 31
For the Year:
2013
2012
Operating income ........................................................
Dividends on investments in subsidiaries and affiliates ...
Operating expenses .....................................................
Net income ...................................................................
At Year-End:
Total net assets (A).......................................................
Total assets (B) ............................................................
Total net assets to total assets (A) / (B) ......................
Capital stock ................................................................
Number of shares issued
¥ 179,560
165,441
24,341
147,981
¥4,641,005
6,266,864
74.04%
2,337,895
¥ 181,372
166,272
24,902
149,919
¥4,527,629
6,153,461
73.57%
2,337,895
Millions of yen
2011
¥ 222,217
206,865
24,467
191,539
¥4,842,914
6,237,655
77.64%
2,337,895
2010
2009
¥ 133,379
118,818
16,641
66,176
¥4,805,574
6,152,774
78.10%
2,337,895
¥ 134,772
117,051
8,790
103,468
¥2,977,547
4,057,313
73.39%
1,420,877
Common stock .................................................... 1,414,055,625
Preferred stock ....................................................
—
Number of employees ..................................................
231
1,414,055,625
—
215
1,414,055,625
70,001
192
1,414,055,625
70,001
183
789,080,477
103,401
167
Selected Ratios:
Return on Equity ..........................................................
Price Earnings Ratio .....................................................
Dividend payout ratio ...................................................
3.23%
35.98x
114.36%
3.27%
25.43x
92.55%
4.02%
19.68x
76.09%
1.59%
57.41x
213.41%
3.52%
28.79x
75.96%
Per Share (Yen):
Net assets ....................................................................
Dividends:
Common stock ........................................................
Preferred stock (1st series Type 4) ..........................
Preferred stock (2nd series Type 4) .........................
Preferred stock (3rd series Type 4)..........................
Preferred stock (4th series Type 4) ..........................
Preferred stock (9th series Type 4) ..........................
Preferred stock (10th series Type 4) ........................
Preferred stock (11th series Type 4) ........................
Preferred stock (12th series Type 4) ........................
Preferred stock (1st series Type 6) ..........................
Net income ..................................................................
Net income — diluted .................................................
¥3,290.23
¥3,317.44
¥3,282.75
¥3,256.32
¥3,389.38
120
/
/
/
/
/
/
/
/
/
104.93
104.89
100
/
/
/
/
/
/
/
/
/
107.06
107.04
100
/
/
/
/
/
/
/
/
88,500
131.42
131.42
100
67,500
67,500
67,500
67,500
67,500
67,500
67,500
67,500
88,500
53.82
—
90
135,000
135,000
135,000
135,000
135,000
135,000
135,000
135,000
88,500
118.43
—
Notes: 1. All SMFG employees are on secondment assignment from SMBC, etc.
2. “Net income — diluted” per share for fiscal 2010 was calculated by retroactive application of “Guidance on Accounting Standard for Earnings per Share,”
(ASBJ Guidance No. 4). Had this Guidance not been applied, “Net income — diluted” per share would have come to ¥131.41 in fiscal 2010.
3. The ¥120 dividend per share for the fiscal year ended March 31, 2013 includes a ¥10 commemorative dividend.
22
SMFG 2013
Sumitomo Mitsui Banking Corporation
◆ Consolidated
Year ended March 31
For the Year:
2013
2012
Total income ................................................................
Total expenses .............................................................
Net income (loss) .........................................................
Comprehensive income ...............................................
¥ 2,810,902
1,889,068
734,514
1,373,623
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Risk-monitored loans ...................................................
Reserve for possible loan losses .................................
Net unrealized gains (losses) on other securities .........
Number of employees ..................................................
¥ 8,257,091
143,203,127
1,493,807
806,702
1,072,906
47,852
Selected Ratios:
Capital ratio (International standard) ............................
Total capital ratio (International standard) ...................
Tier 1 capital ratio (International standard) ..................
Common equity Tier 1 capital ratio
(International standard) ..............................................
Return on Equity ..........................................................
/
16.84%
12.69%
11.26%
11.72%
Per Share (Yen):
¥ 2,715,700
1,838,390
533,816
632,889
¥ 7,276,706
138,251,602
1,659,306
867,653
390,602
50,768
19.63%
/
/
/
9.63%
Millions of yen
2011
¥ 2,714,944
1,972,065
450,832
363,689
¥ 6,983,132
132,715,674
1,529,587
943,077
305,968
48,219
19.16%
/
/
/
8.42%
2010
2009
¥ 2,597,675
2,039,296
332,497
835,851
¥ 6,894,564
120,041,369
1,498,271
1,007,160
523,444
47,837
16.68%
/
/
/
8.64%
¥ 2,991,839
2,941,009
(317,306)
—
¥ 4,518,647
115,849,385
1,561,824
1,011,845
(59,758)
37,345
13.54%
/
/
/
—%
Net assets ....................................................................
Net income (loss) .........................................................
Net income — diluted .................................................
¥64,031.58
6,913.18
6,908.19
¥53,960.98
5,024.23
5,023.33
¥50,344.52
4,184.89
4,184.07
¥49,036.12
4,240.20
4,236.01
¥41,492.54
(5,740.34)
—
Notes: 1. “Net unrealized gains (losses) on other securities” represent the difference between the market prices and acquisition costs (or amortized costs) of “other
securities.” In principle, the values of stocks are calculated using the average market prices during the final month.
2. “Number of employees” has been reported on the basis of full-time workers. “Number of employees” includes locally hired overseas staff members but
excludes contract employees and temporary staff.
3. For the calculation of consolidated comprehensive income for fiscal 2009, SMBC has retroactively adopted the “Accounting Standard for Presentation of
Comprehensive Income” (ASBJ Statement No. 25, issued on June 30, 2010).
23
SMFG 2013
◆ Nonconsolidated
Year ended March 31
For the Year:
Total income ................................................................
Total expenses .............................................................
Net income (loss) .........................................................
(Appendix)
Gross banking profit (A) ...........................................
Banking profit ..........................................................
Banking profit (before provision for general
reserve for possible loan losses) ...........................
Expenses (excluding nonrecurring losses) (B) .........
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Deposits .......................................................................
Loans and bills discounted ..........................................
Securities .....................................................................
Risk-monitored loans ...................................................
Problem assets based on the
Financial Reconstruction Act .....................................
Reserve for possible loan losses .................................
Net unrealized gains (losses) on other securities .........
Trust assets and liabilities ............................................
Loans and bills discounted ......................................
Securities .................................................................
Capital stock ................................................................
Number of shares issued (in thousands)
Common stock ....................................................
Preferred stock ....................................................
Number of employees ..................................................
Selected Ratios:
Capital ratio (International standard) ............................
Total capital ratio (International standard) ...................
Tier 1 capital ratio (International standard) ..................
Common equity Tier 1 capital ratio
(International standard) ..............................................
Return on Equity ..........................................................
Dividend payout ratio ...................................................
Overhead ratio (B) / (A) .................................................
Per Share (Yen):
Net assets ....................................................................
Dividends:
Common stock ........................................................
Preferred stock (1st series Type 6) ..........................
Net income (loss) .........................................................
Net income — diluted .................................................
2013
2012
Millions of yen
2011
2010
2009
¥ 2,121,412
1,456,011
617,791
¥ 2,021,042
1,329,050
477,973
¥ 2,110,588
1,521,748
421,180
¥ 2,087,777
1,633,026
317,995
¥ 2,548,073
2,520,286
(301,116)
1,540,095
812,358
812,358
727,736
¥ 6,554,446
125,910,020
91,928,337
59,770,763
41,347,000
1,062,290
1,532,511
856,796
813,015
719,495
¥ 5,709,663
119,037,469
84,392,835
56,411,492
42,441,134
1,143,053
1,531,759
844,897
832,562
699,197
¥ 5,559,293
115,484,907
82,443,286
55,237,613
39,853,432
1,090,605
1,455,275
778,589
769,522
685,752
¥ 5,397,949
103,536,394
77,630,639
56,619,058
28,536,200
1,068,017
1,524,856
747,647
823,377
701,479
¥ 2,546,493
107,478,218
76,905,708
60,241,266
28,000,515
1,137,058
1,093,465
616,593
1,040,660
2,693,092
131,913
1,076,225
1,770,996
106,248
70
22,569
/
18.62%
13.92%
11.75%
10.07%
29.04%
47.3%
1,182,847
689,215
388,982
1,891,853
235,829
424,478
1,770,996
106,248
70
22,686
21.91%
/
/
/
8.64%
33.00%
46.9%
1,126,269
711,522
305,621
1,576,094
237,383
444,664
1,770,996
106,248
70
22,524
21.45%
/
/
/
7.87%
35.53%
45.6%
1,100,685
758,178
521,377
1,403,236
221,970
457,585
1,770,996
106,248
70
22,460
18.28%
/
/
/
8.28%
48.06%
47.1%
1,194,170
791,885
(42,701)
1,262,993
222,030
392,812
664,986
56,355
70
21,816
13.85%
/
/
/
—%
—%
46.0%
¥61,689.83
¥53,738.81
¥50,317.86
¥48,799.31
¥41,404.62
1,689
/
5,814.59
—
1,485
/
4,498.64
—
1,388
88,500
3,905.80
—
1,620
88,500
4,051.75
—
1,638
88,500
(5,453.06)
—
Notes: 1. Please refer to page 168 for the definitions of risk-monitored loans and problem assets based on the Financial Reconstruction Act.
2. “Net unrealized gains (losses) on other securities” represent the difference between the market prices and acquisition costs (or amortized costs) of “other
securities.” The values of stocks are calculated using the average market prices during the final month. For details, please refer to page 31.
3. “Number of employees” has been reported on the basis of full-time workers. “Number of employees” includes locally hired overseas staff members but
excludes contract employees, temporary staff, and executive officers who are not also Board members.
4. “Net income — diluted” per share is not reported because no potentially dilutive shares have been issued.
24
SMFG 2013
Financial Review
Sumitomo Mitsui Financial Group (Consolidated)
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
The following is a summary of SMFG’s consolidated financial results for the fiscal year ended March 31, 2013.
1. Operating Results
Operating results for fiscal 2012 include the results of 323
consolidated subsidiaries and 44 subsidiaries and affiliates
accounted for by the equity method.
In fiscal 2012, gross profit increased by ¥198.4 billion
year-on-year to ¥2,792.8 billion as a result of the following
factors, among others: SMBC Consumer Finance Co., Ltd.
became a consolidated subsidiary in December 2011 and
contributed to earnings; and SMBC achieved growth in net
interest income, mainly due to an increase in the balance
of overseas loans and bills discounted, and in net fees and
commissions, primarily due to an increase in fees related
to loan syndication. Ordinary profit after adjustment for
general and administrative expenses, credit cost, net losses
on stocks, equity in losses of affiliates and other items
increased by ¥138.1 billion year-on-year to ¥1,073.7 billion.
Net income after adjustment for extraordinary gains (losses)
and income taxes increased by ¥275.5 billion to ¥794.0
billion.
Number of Consolidated Subsidiaries, and Subsidiaries and Affiliates Accounted for by the Equity Method
March 31
Consolidated subsidiaries .............................................................................................
Subsidiaries and affiliates accounted for by the equity method ...................................
2013 (A)
2012 (B)
323
44
337
43
Income Summary
Year ended March 31
Consolidated gross profit ..............................................................................................
Net interest income ...................................................................................................
Trust fees ...................................................................................................................
Net fees and commissions ........................................................................................
Net trading income ....................................................................................................
Net other operating income .......................................................................................
General and administrative expenses ...........................................................................
Credit cost (A) ................................................................................................................
Write-off of loans .......................................................................................................
Provision for specific reserve for possible loan losses ..............................................
Provision for general reserve for possible loan losses ..............................................
Others ........................................................................................................................
Recoveries of written-off claims (B) ..............................................................................
Net losses on stocks .....................................................................................................
Equity in gains (losses) of affiliates ................................................................................
Net other expenses .......................................................................................................
Ordinary profit ...............................................................................................................
Extraordinary gains (losses)...........................................................................................
Gains on step acquisitions ........................................................................................
Gains (losses) on disposal of fixed assets .................................................................
Losses on impairment of fixed assets .......................................................................
Income before income taxes and minority interests .....................................................
Income taxes:
Current ......................................................................................................................
Deferred .....................................................................................................................
Income before minority interests ...................................................................................
Minority interests in net income ...................................................................................
Net income ....................................................................................................................
Net total credit cost (A) + (B) .........................................................................................
[Reference]
Consolidated net business profit (Billions of yen) .........................................................
2013 (A)
¥2,792,891
1,392,636
1,871
908,168
166,617
323,597
(1,496,294)
(183,552)
(133,639)
(104,180)
67,530
(13,262)
10,436
(20,973)
5,309
(34,072)
1,073,745
(9,711)
140
(5,480)
(4,314)
1,064,033
(279,898)
133,930
918,065
(124,006)
¥ 794,059
¥ (173,115)
Millions of yen
2012 (B)
¥2,594,482
1,341,369
1,770
823,580
198,192
229,568
(1,421,363)
(126,055)
(90,305)
(111,227)
106,512
(31,035)
4,800
(27,880)
(31,122)
(57,289)
935,571
17,395
25,050
(3,765)
(3,861)
952,966
(103,478)
(207,860)
641,627
(123,090)
¥ 518,536
¥ (121,255)
Increase (decrease)
(A) – (B)
(14)
1
Increase (decrease)
(A) – (B)
¥198,409
51,267
101
84,588
(31,575)
94,029
(74,931)
(57,497)
(43,334)
7,047
(38,982)
17,773
5,636
6,907
36,431
23,217
138,174
(27,106)
(24,910)
(1,715)
(453)
111,067
(176,420)
341,790
276,438
(916)
¥275,523
¥ (51,860)
Notes: 1. Consolidated gross profit = (Interest income – Interest expenses) + Trust fees + (Fees and commissions – Fees and commissions payments)
+ (Trading income – Trading losses) + (Other operating income – Other operating expenses)
2. Consolidated net business profit = SMBC’s nonconsolidated banking profit (before provision for general reserve for possible loan losses)
+ SMFG’s ordinary profit + Other subsidiaries’ ordinary profit (excluding nonrecurring factors) + Equity method affiliates’ ordinary profit
✕ Ownership ratio – Internal transactions (dividends, etc.)
25
¥ 1,166.2
¥ 1,013.9
¥ 152.3
SMFG 2013
Deposits (excluding negotiable certificates of deposit) as of
March 31, 2013 increased by ¥4,953.2 billion year-on-year
to ¥89,081.8 billion, and the negotiable certificates of deposit
increased by ¥3,162.0 billion to ¥11,755.6 billion.
Meanwhile, loans and bills discounted as of March 31,
2013 totaled ¥65,632.0 billion, a year-on-year increase of
¥2,911.4 billion, mainly in Asia and the U. S., and securities
Assets, Liabilities and Net Assets
totaled ¥41,306.7 billion, a decrease of ¥1,223.2 billion.
Net assets were ¥8,443.2 billion. Of this amount,
stockholders’ equity was ¥5,680.6 billion mainly due to the
recording of net income, and the payment of cash dividends.
March 31
Assets ............................................................................................................................ ¥148,696,800
41,306,731
65,632,091
140,253,582
89,081,811
11,755,654
8,443,218
Securities ...................................................................................................................
Loans and bills discounted ........................................................................................
Liabilities ........................................................................................................................
Deposits.....................................................................................................................
Negotiable certificates of deposit ..............................................................................
Net assets .....................................................................................................................
2013 (A)
Millions of yen
2012 (B)
¥143,040,672
42,529,950
62,720,599
135,785,696
84,128,561
8,593,638
7,254,976
Increase (decrease)
(A) – (B)
¥5,656,128
(1,223,219)
2,911,492
4,467,886
4,953,250
3,162,016
1,188,242
2. Unrealized Gains (Losses) on Securities
Net unrealized gains on securities as of March 31, 2013
increased by ¥638.6 billion year-on-year to ¥1,182.7 billion,
primarily because of an increase in the unrealized gains
of stocks. Of this amount, net unrealized gains on other
securities (including other money held in trust), which are
directly recorded to net assets, were ¥1,121.6 billion, a
year-on-year increase of ¥646.6 billion.
Unrealized Gains (Losses) on Securities
Consolidated
balance sheet
amount
Net unrealized
gains (losses)
(A)
March 31
Held-to-maturity securities ................. ¥ 5,852,111 ¥ 61,150
Other securities .................................. 35,776,786
1,121,598
Stocks .............................................
771,237
2,806,706
Bonds ............................................. 24,525,328
108,320
Others .............................................
242,040
8,444,750
Other money held in trust ...................
10
22,789
Total .................................................... 41,651,687
1,182,759
Stocks .............................................
771,237
2,806,706
Bonds ............................................. 30,365,341
169,467
Others .............................................
242,054
8,479,639
Millions of yen
2013
Unrealized
gains
(A) – (B)
¥ (8,034) ¥ 61,191
1,256,572
646,614
867,109
499,776
112,202
(3,495)
277,260
150,332
10
56
1,317,774
638,637
867,109
499,776
173,390
(11,531)
277,274
150,392
2012
Consolidated
balance sheet
amount
¥ 5,286,267
37,558,730
2,406,170
27,684,484
7,468,076
22,430
42,867,429
2,406,170
32,957,653
7,503,605
Net unrealized
gains (losses)
(B)
¥ 69,184
474,984
271,461
111,815
91,708
(46)
544,122
271,461
180,998
91,662
Unrealized
gains
¥ 69,288
746,928
490,074
118,164
138,689
—
816,216
490,074
187,444
138,697
Unrealized
losses
¥ 41
134,973
95,872
3,881
35,220
—
135,015
95,872
3,922
35,220
Unrealized
losses
¥ 103
271,943
218,613
6,348
46,981
46
272,093
218,613
6,445
47,034
Notes: 1. The figures above include unrealized gains (losses) on negotiable certificates of deposit in “Cash and due from banks” and “Deposits with banks” and
beneficiary claims on loan trusts in “Monetary claims bought,” etc.
2. Unrealized gains (losses) on stocks (including foreign stocks) are mainly calculated using the average market price during the final month of the respective
reporting period. The rest of the securities are valuated at the market price as of the balance sheet date.
3. “Other securities” and “Other money held in trust” are valuated and recorded on the consolidated balance sheet at market prices. The figures in the table
above indicate the differences between the acquisition costs (or amortized costs) and the consolidated balance sheet amounts.
Net unrealized gains (losses) on other securities, as of March 31, 2013 and 2012, included gains of ¥29,831 million and ¥196 million, respectively, which
were recognized in the statements of income by applying fair value hedge accounting. As a result, the amounts recorded in net assets, as of March 31,
2013 and 2012, were reduced by ¥29,831 million and ¥196 million, respectively.
4. Floating-rate Japanese government bonds which SMFG held as “Other securities” are carried on the consolidated balance sheet at their reasonably
estimated amounts in accordance with the “Practical Solution on Measurement of Fair Value for Financial Assets” (Accounting Standards Board of Japan
(“ASBJ”) Practical Issues Task Force No. 25).
26
SMFG 2013
3. Consolidated Capital Ratio
The total capital ratio as of March 31, 2013, stood at
14.71%, the Tier 1 capital ratio was 10.93%, and the com-
mon equity Tier 1 capital ratio was 9.38%.
Please note that from March 31, 2013, the consoli-
dated capital ratio has been calculated according to the
formula specified in the Financial Services Agency (“FSA”)
Notification No. 20 issued in fiscal 2006, which is based on
Article 52-25 of the Banking Act of Japan, amended March
30, 2012.
This provision is used in deciding whether or not capital
should be increased to reflect assets, etc. held by compa-
nies under bank holding companies and their subsidiaries.
Consolidated Capital Ratio (International Standard)
March 31
Common equity Tier 1 capital ...................................................................................
Common equity Tier 1 capital ratio ...........................................................................
Additional Tier 1 capital .............................................................................................
Tier 1 capital ..................................................................................................................
Tier 1 capital ratio ..........................................................................................................
Tier 2 capital ..................................................................................................................
Total capital ...................................................................................................................
Total capital ratio ...........................................................................................................
Risk weighted assets.....................................................................................................
Millions of yen
2013
5,855,852
9.38%
973,168
6,829,021
10.93%
2,356,989
9,186,010
14.71%
62,426,124
4. Dividend Policy
The basic shareholder return policy of SMFG is to sustain
a consolidated payout ratio of over 20% through the stable
and consistent distribution of profit, while enhancing retained
earnings to maintain financial soundness in light of the public
nature of its business as a bank holding company, by ensur-
ing the sustainable growth of enterprise value. Dividends
from retained earnings are basically distributed twice a year
in the form of an interim dividend and a yearend dividend. An
interim dividend can be declared by the Board of Directors,
with September 30 of each year as the recorded date, but
the approval of shareholders at the annual general meeting is
required to pay a yearend dividend.
In light of current earnings trends and other factors, we
have increased the dividend per share of common stock for
the fiscal year under review by ¥10 year-on-year.
In addition, we have incorporated a commemorative ele-
ment amounting to ¥10 per share into the year-end dividend,
to mark the 10th anniversary of the foundation of the Group
in December 2012.
As a result of the above, the annual dividend per share of
common stock has risen by ¥20 year-on-year to ¥120.
SMFG will employ its retained earnings to increase its
enterprise value by aiming for top quality in strategic business
areas, and establishing a solid financial base and corporate
infrastructure to meet the challenges of financial regulations
and highly competitive environment.
27
SMFG 2013 Sumitomo Mitsui Banking Corporation (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
The following is a summary of SMBC’s nonconsolidated financial results for the fiscal year ended March 31, 2013.
1. Operating Results
Gross banking profit in fiscal 2012 increased by ¥7.5 billion
year-on-year to ¥1,540.0 billion, and expenses (excluding
nonrecurring losses) increased by ¥8.2 billion to ¥727.7 bil-
lion. As a result, banking profit (before provision for general
reserve for possible loan losses) decreased by ¥0.6 billion to
¥812.3 billion.
Ordinary profit — banking profit (before provision for
general reserve for possible loan losses) adjusted for nonre-
curring items such as credit cost and net gains (losses) on
stocks — decreased by ¥24.4 billion year-on-year to ¥670.8
billion.
Net income after adjustment for ordinary profit for extraor-
dinary gains and losses, and income taxes increased by
¥139.8 billion year-on-year to ¥617.7 billion.
2. Income Analysis
Gross Banking Profit
Gross banking profit increased by ¥7.5 billion year-on-year
to ¥1,540.0 billion despite a ¥38.6 billion decrease in gains
on bonds. This was due to an increase in fees and commis-
sions from syndicated loan and loan arrangement services; a
robust sales of investment trusts supported by the recovery
in the stock market in the second half of the fiscal year; and
an increase in net interest income of International Banking
Unit, mainly in Asia and the Americas.
Expenses
Expenses (excluding nonrecurring losses) increased by ¥8.2
billion year-on-year to ¥727.7 billion. This was due to a com-
bination of an increase in personnel and operational expenses
accompanying the expansion of overseas business and the
yen’s depreciation which outweighed a reduction from the reex-
amination and control of ordinary expenses.
Banking Profit
Banking profit (before provision for general reserve for pos-
sible loan losses) decreased by ¥0.6 billion year-on-year to
¥812.3 billion.
Banking Profit
Year ended March 31
Gross banking profit ......................................................................................................
[Gross domestic banking profit] ................................................................................
[Gross international banking profit] ...........................................................................
Net interest income ...................................................................................................
Trust fees ...................................................................................................................
Net fees and commissions ........................................................................................
Net trading income ....................................................................................................
Net other operating income .......................................................................................
[Gains (losses) on bonds] ..........................................................................................
Expenses (excluding nonrecurring losses) ....................................................................
Personnel expenses ..................................................................................................
Nonpersonnel expenses ............................................................................................
Taxes..........................................................................................................................
Banking profit (before provision for general reserve for possible loan losses) ....
[Gains (losses) on bonds] ..........................................................................................
Provision for general reserve for possible loan losses ..................................................
Banking profit ................................................................................................................
2013 (A)
¥1,540,095
[1,098,912]
[441,182]
971,202
1,823
343,738
(3,781)
227,112
[113,849]
(727,736)
(270,091)
(419,203)
(38,440)
812,358
[113,849]
—
812,358
Banking Profit by Business Unit
Millions of yen
2012 (B)
¥1,532,511
[1,097,760]
[434,750]
956,878
1,736
318,887
84,051
170,957
[152,536]
(719,495)
(259,782)
(422,854)
(36,858)
813,015
[152,536]
43,780
856,796
Increase (decrease)
(A) – (B)
¥ 7,584
[1,152]
[6,432]
14,324
87
24,851
(87,832)
56,155
[(38,687)]
(8,241)
(10,309)
3,651
(1,582)
(657)
[(38,687)]
(43,780)
(44,438)
Year ended March 31, 2013
Banking profit (before provision for
general reserve for possible loan losses) .................
Year-on-year increase (decrease) ...............................
Consumer
Banking Unit
Middle Market
Banking Unit
Corporate
Banking Unit
Billions of yen
International
Banking Unit
Treasury
Unit
Head Office
Account
Total
¥90.5
9.8
¥195.5
(2.7)
¥168.4
2.0
¥167.6
24.6
¥274.3
(25.5)
¥(83.9)
(8.8)
¥812.4
(0.6)
Notes: 1. Year-on-year comparisons are those used for internal reporting and exclude changes due to interest rate and foreign exchange rate fluctuations.
2. “Head Office Account” consists of (1) financing costs on preferred securities and subordinated debt, (2) profit earned on investing the Bank’s own capital,
and (3) adjustment of inter-unit transactions, etc.
28
SMFG 2013
Nonrecurring Losses (Credit Cost, etc.)
Nonrecurring losses decreased by ¥19.9 billion year-on-year to
¥141.5 billion. This was mainly due to a ¥39.1 billion decrease
to ¥19.5 billion in total credit cost, after adjustments regarding
reversal of reserve for possible loan losses for credit cost, as a
result of our individualized efforts to assist certain borrowers to
improve their business and financial conditions.
Ordinary Profit
As a result of the foregoing, ordinary profit decreased by ¥24.4
billion year-on-year to ¥670.8 billion.
Extraordinary Gains (Losses)
Extraordinary losses increased by ¥2.1 billion year-on-year to
¥5.4 billion.
Net Income
Due to elimination of tax loss carryforwards, current income
taxes came to ¥209.7 billion, a ¥165.0 billion increase in
expenses, but deferred income taxes came to ¥162.0 billion,
an improvement of ¥331.4 billion from the previous year.
This was due to a change in tax effect accounting treat-
ment in line with the elimination of tax loss carryforwards in
the current year, with the effect that the total of deferred tax
assets recognized increased.
Ordinary Profit and Net Income
Year ended March 31
Banking profit (before provision for general reserve for possible loan losses) ..............
Provision for general reserve for possible loan losses (A) .............................................
Banking profit ................................................................................................................
Nonrecurring gains (losses) ...........................................................................................
Credit cost (B) ............................................................................................................
Gains on reversal of reserve for possible loan losses (C) ..........................................
Recoveries of written-off claims (D) ...........................................................................
Net gains (losses) on stocks ......................................................................................
Gains on sale of stocks .........................................................................................
Losses on devaluation of stocks ...........................................................................
Others ........................................................................................................................
Ordinary profit ...............................................................................................................
Extraordinary gains (losses)...........................................................................................
Gains (losses) on disposal of fixed assets .................................................................
Losses on impairment of fixed assets .......................................................................
Income taxes:
Current .......................................................................................................................
Deferred .....................................................................................................................
Net income ....................................................................................................................
Net total credit cost (A) + (B) + (C) + (D) ........................................................................
Provision for general reserve for possible loan losses ..............................................
Write-off of loans .......................................................................................................
Provision for specific reserve for possible loan losses ..............................................
Losses on sales of delinquent loans .........................................................................
Provision for loan loss reserve for specific overseas countries .................................
Recoveries of written-off claims ................................................................................
2013 (A)
¥812,358
—
812,358
(141,505)
(46,326)
26,747
54
(35,662)
469
(36,131)
(86,319)
670,852
(5,451)
(2,200)
(3,250)
(209,704)
162,095
¥617,791
¥ (19,523)
71,680
(40,258)
(45,102)
(6,067)
168
54
Millions of yen
2012 (B)
¥813,015
43,780
856,796
(161,453)
(103,662)
—
1,234
(15,153)
13,488
(28,642)
(43,871)
695,342
(3,349)
(717)
(2,632)
(44,703)
(169,315)
¥477,973
¥ (58,647)
43,780
(15,797)
(59,196)
(28,767)
98
1,234
Increase (decrease)
(A) – (B)
¥ (657)
(43,780)
(44,438)
19,948
57,336
26,747
(1,180)
(20,509)
(13,019)
(7,489)
(42,448)
(24,490)
(2,102)
(1,483)
(618)
(165,001)
331,410
¥139,818
¥ 39,124
27,900
(24,461)
14,094
22,700
70
(1,180)
29
SMFG 2013 3. Assets, Liabilities and Net Assets
Assets
Total assets as of March 31, 2013 increased by ¥6,872.5
billion year-on-year to ¥125,910.0 billion. This was largely
due to a ¥3,359.2 billion increase in loans and bills dis-
counted, principally in Asia and the Americas.
Liabilities
Liabilities as of March 31, 2013 increased by ¥6,027.7 bil-
lion year-on-year to ¥119,355.5 billion, mainly due to a
¥4,202.3 billion increase in deposits. Both individual and
corporate deposits increased in Japan, and in other parts of
the world, deposits increased from the expansion of over-
seas business.
Net Assets
Net assets as of March 31, 2013 amounted to ¥6,554.4
billion. Of this amount, stockholders’ equity was ¥5,762.9
billion, comprising ¥1,770.9 billion in capital stock, ¥2,481.2
billion in capital surplus (including ¥710.2 billion in other
capital surplus), ¥1,720.7 billion in retained earnings, and a
deduction of ¥210.0 billion in treasury stock.
Valuation and translation adjustments were ¥791.4 billion,
comprising ¥742.3 billion in net unrealized gains on other
securities, ¥23.3 billion in net deferred gains on hedges, and
¥25.8 billion in land revaluation excess.
Assets, Liabilities and Net Assets
March 31
Assets ............................................................................................................................ ¥125,910,020
41,347,000
59,770,763
119,355,573
80,006,438
11,921,899
6,554,446
Securities ...................................................................................................................
Loans and bills discounted ........................................................................................
Liabilities ........................................................................................................................
Deposits.....................................................................................................................
Negotiable certificates of deposit ..............................................................................
Net assets .....................................................................................................................
2013 (A)
Millions of yen
2012 (B)
¥119,037,469
42,441,134
56,411,492
113,327,806
75,804,088
8,588,746
5,709,663
Increase (decrease)
(A) – (B)
¥6,872,551
(1,094,134)
3,359,271
6,027,767
4,202,350
3,333,153
844,783
30
SMFG 2013 4. Unrealized Gains (Losses) on Securities
Net unrealized gains on securities as of March 31, 2013
increased by ¥648.9 billion year-on-year to ¥1,084.2 billion,
mainly due to an increase in the unrealized gains of stocks.
Of this amount, net unrealized gains on other securities
Unrealized Gains (Losses) on Securities
(including other money held in trust), which are directly
recorded to net assets, amounted to ¥1,040.6 billion, a
year-on-year increase of ¥651.7 billion.
2013
2012
Millions of yen
Non-
consolidated
balance sheet
amount
Net unrealized
gains (losses)
(A)
March 31
Held-to-maturity securities ................. ¥ 5,735,948 ¥ 59,904
Stocks of subsidiaries and affiliates ...
(16,326)
2,474,054
Other securities .................................. 33,655,434
1,040,660
Stocks .............................................
769,685
2,792,916
Bonds ............................................. 23,126,292
95,261
Others .............................................
175,713
7,736,225
Other money held in trust ...................
10
2,372
Total .................................................... 41,867,810
1,084,249
Stocks .............................................
764,286
3,900,774
Bonds ............................................. 28,862,241
155,165
Others .............................................
164,797
9,104,794
Unrealized
gains
(A) – (B)
¥ (7,998) ¥ 59,941
7,274
1,165,723
862,237
98,552
204,933
10
1,232,949
869,511
158,494
204,943
5,173
651,678
541,232
(9,095)
119,541
56
648,911
547,137
(17,094)
118,867
Non-
consolidated
balance sheet
amount
¥ 5,163,764
2,324,041
35,440,979
2,250,672
26,306,672
6,883,634
5,805
42,934,589
3,472,964
31,470,436
7,991,189
Net unrealized
gains (losses)
(B)
¥ 67,902
(21,499)
388,982
228,453
104,356
56,172
(46)
435,338
217,149
172,259
45,930
Unrealized
gains
¥ 67,993
622
672,572
466,871
109,504
96,196
—
741,188
467,494
177,497
96,196
Unrealized
losses
¥ 37
23,600
125,062
92,551
3,291
29,219
—
148,699
105,224
3,328
40,146
Unrealized
losses
¥ 90
22,122
283,590
238,418
5,148
40,024
46
305,850
250,345
5,238
50,266
Notes: 1. The figures above include unrealized gains (losses) on negotiable certificates of deposit in “Cash and due from banks” and “Deposits with banks” and
beneficiary claims on loan trusts in “Monetary claims bought,” etc.
2. Unrealized gains (losses) on stocks (excluding stocks of subsidiaries and affiliates) (including foreign stocks) are mainly calculated using the average market
price during the final month of the respective reporting period. The rest of the securities are valuated at the market price as of the balance sheet date.
3. “Other securities” and “Other money held in trust” are valuated and recorded on the balance sheet at market prices. The figures in the table above indicate
the differences between the acquisition costs (or amortized costs) and the balance sheet amounts.
Net unrealized gains (losses) on other securities, as of March 31, 2013 and 2012, included gains of ¥29,831 million and ¥196 million, respectively, which
were recognized in the statements of income by applying fair value hedge accounting. As a result, the amounts recorded in net assets, as of March 31,
2013 and 2012, were reduced by ¥29,831 million and ¥196 million, respectively.
4. Floating-rate Japanese government bonds which SMBC held as “Other securities” are carried on the balance sheet at their reasonably estimated amounts
in accordance with the “Practical Solution on Measurement of Fair Value for Financial Assets” (ASBJ Practical Issues Task Force No. 25).
31
SMFG 2013
Exposure of Securitized Products (Sumitomo Mitsui Financial Group (Consolidated))
The figures contained in this section have been compiled on a managerial accounting basis.
1. Securitized Products
Cards
CLO
CMBS
RMBS, etc.
Total
March 31, 2013
(Billions of yen)
March 31, 2012
Balances
(after provisions
and write-offs)
¥ 97.8
0.5
8.5
0.1
¥106.9
Change from
Mar. 31, 2012
¥48.3
(0.2)
(10.9)
0.0
¥37.3
Overseas
¥ 97.8
0.5
8.5
0.1
¥106.9
Change from
Mar. 31, 2012
¥48.3
(0.2)
1.1
(0.0)
¥49.3
Net unrealized
gains/losses
(after write-offs)
¥0.4
2.1
0.5
0.2
¥3.2
Change from
Mar. 31, 2012
¥0.1
0.6
(0.1)
0.1
¥0.8
Balances
(after provisions
and write-offs)
¥49.4
0.7
19.4
0.1
¥69.6
Overseas
¥49.4
0.7
7.4
0.1
¥57.6
Net unrealized
gains/losses
(after write-offs)
¥0.2
1.5
0.6
0.1
¥2.4
Notes: 1. There is no amount of ABCP.
2. Excludes RMBS issued by GSE and Japan Housing Finance Agency, and SMBC’s exposure to subordinated beneficiaries owned through the securitization
of SMBC’s loan receivables.
2. Transactions with Monoline Insurance Companies (Credit Derivatives)
Exposure to CDS transactions with
monoline insurance companies
3. Leveraged Loans
Europe
Japan
United States
Asia (excluding Japan)
Total
(Billions of yen)
March 31, 2013
March 31, 2012
Net
exposure
Change from
Mar. 31, 2012
Amount of
reference
assets
Change from
Mar. 31, 2012
Net
exposure
Amount of
reference
assets
¥1.0
¥(2.0)
¥185.9
¥(50.2)
¥3.0
¥236.1
March 31, 2013
(Billions of yen)
March 31, 2012
Change from
Mar. 31, 2012
Undrawn
commitments
Change from
Mar. 31, 2012
Loans
Undrawn
commitments
¥(41.8)
49.8
(1.8)
(2.2)
¥ 4.0
¥ 16.6
36.2
76.5
5.6
¥135.0
¥ (4.0)
14.0
25.4
(0.1)
¥35.3
¥151.2
131.0
75.6
62.0
¥419.8
¥20.7
22.3
51.1
5.7
¥99.8
Loans
¥109.4
180.8
73.8
59.8
¥423.8
4. Asset Backed Commercial Paper (ABCP) Programs as Sponsor
We sponsor issuance of ABCP, whose reference assets are
such as clients’ receivables, in order to fulfill clients’
financing needs. Most of the reference assets are high-
grade claims of corporate clients.
Reference assets related to ABCP programs as sponsor
March 31, 2013
March 31, 2012
(Billions of yen)
Notional
amount
Change from
Mar. 31, 2012
Overseas
¥562.8
¥(37.0) ¥308.9
Change from
Mar. 31, 2012
¥78.0
Notional
amount
Overseas
¥599.9
¥230.9
Reference: In addition, we provide liquidity supports for ABCP programs which are sponsored by other banks. Total notional amount of reference assets of such
programs are approximately ¥52.6 billion.
5. Others
We have no securities issued by structured investment vehicles.
32
SMFG 2013
Risk Management
Basic Approach
As risks in the financial services increase in diversity and complexity,
response to changes in the operating environment. The Corporate
Risk Management Department works with the Corporate Planning
risk management—identifying, measuring, and controlling risk—has
Department to comprehensively and systematically manage all
never been more important in the management of a financial holding
these categories of risk across the entire Group.
company.
SMFG has established the basic principles of Groupwide risk
(2) Basic Policies for Risk Management
SMFG has established the “Principal Policy for Group Risk
management in the “Regulations on Integrated Risk Management.”
Management” for the comprehensive risk and risks to be managed,
In the regulations, we identify the location and the type of risk to
and we set forth the specific operational policies for appropriately
be managed in accordance with strategic goals and business struc-
conducting the risk management of the Group companies. Further,
tures. We have set forth the fundamental principles for integrated risk
the Principal Policy is being reviewed regularly and as necessary.
management; managing risk on a consolidated accounting basis,
Under SMFG’s Groupwide basic policies for risk management,
managing risk using quantification methods, ensuring consistency
all Group companies periodically carry out reviews of the basic
with business strategies, setting up a system of checks and bal-
management policies for each risk category, or whenever deemed
ances, contingency planning for emergencies and serious situations
necessary, thus ensuring that the policies followed at any time
and verifying preparedness to handle all conceivable risk situations.
are the most appropriate. The management of SMFG constantly
We manage each risk appropriately according to its characteristics.
monitors the conduct of risk management at Group companies,
Through this approach, we aim to develop sound risk culture.
providing guidance when necessary.
(1) Types of Risk to Be Managed
At SMFG, we classify risk into the following categories:
(1) credit risk, (2) market risk, (3) liquidity risk and (4) operational
risk (including processing risk and system risk). In addition, we
provide individually tailored guidance to help Group companies
identify categories of risk that need to be addressed. Risk catego-
ries are constantly reviewed, and new categories may be added in
Risk Management System
Top management plays an active role in determining SMFG’s
Groupwide basic policies for risk management. The system works
as follows: The basic policies for risk management are determined
by the Management Committee before being authorized by the
Board. The Management Committee, the designated board
■SMFG’s Risk Management System
SMFG
Board of Directors
Corporate Auditors
Management Committee
External Audit
Designated Board Members
Audit Dept.
Guidance for
drafting of basic
policies
Monitoring
Corporate-wide
Risk Management
Corporate Planning Dept./
Corporate Risk
Management Dept.
Report
Corporate Risk
Management
Dept.
Credit Risk
Market Risk
Liquidity Risk
Operational Risk
General Affairs Dept.
Processing Risk
IT Planning Dept.
System Risk
Board of Directors
Management
Committee
Credit Risk
Management Committee
Market Risk
Management Committee
Corporate Auditors
External Audit
Designated
Board Members
Board Member in Charge of Risk Management Unit
Internal Audit Unit
Bank-wide
Risk Management
Settle-
ment
Risk
Corporate Planning
Dept./Corporate Risk
Management Dept.
Credit & Investment
Planning Dept.
Credit Risk
Risk
Manage-
ment Unit
Corporate Risk
Management
Dept.
Market Risk
Liquidity Risk
Operational Risk
Operations Planning Dept.
Processing Risk
IT Planning Dept.
System Risk
Transaction Business Planning Dept.
Other Departments
Other Risks
SMBC
SMBC Nikko
Securities
Sumitomo Mitsui
Finance & Leasing
SMBC
Friend
Securities
SMFG
Card & Credit
Sumitomo
Mitsui Card
Cedyna
SMBC
Consumer
Finance
Japan
Research
Institute
33
SMFG 2013
members, and the relevant risk management departments perform
Committee, which are subcommittees of the Management
risk management according to the basic policies.
Committee. The Management Committee is also attended by the
Risk management systems are in place at the individual Group
relevant department heads.
companies in accordance with SMFG’s Groupwide basic policies
for risk management. For example, at SMBC, specific departments
Integrated Risk Management
have been appointed to oversee the handling of the four risk cat-
egories listed above, in addition to risks associated with settlement.
Each risk category is managed taking into account the particular
characteristics of that category. In addition, the Risk Management
Unit has been established—independent of the business units—
and the risk management framework has been strengthened by
consolidating the functions for managing major risks—credit, mar-
ket, liquidity and operational—into the Risk Management Unit and
enhancing our across-the-board risk monitoring ability. A board
(1) Risk Capital-Based Management
In order to maintain a balance between risk and return as well as
ensure the soundness of the Group from an overall perspective, we
employ the risk capital-based management method. We measure
“risk capital” based on value at risk (VaR), etc. as a uniform basic
measure of credit, market, and operational risk, taking account of
the special characteristics of each type of risk and the business
activities of each Group company. We then allocate capital appro-
priately and effectively to each unit to keep total exposure to various
member is assigned to oversee the Risk Management Unit com-
risks within the scope of our resources, i.e., capital.
prising the Corporate Risk Management Department and Credit &
Investment Planning Department. The Corporate Risk Management
Department—the unit’s planning department—comprehensively and
systematically manages all categories of risk in cooperation with
the Corporate Planning Department. Moreover, the Internal Audit
Unit—independent of all business units—conducts periodic audits
to ensure that the management system is functioning properly.
Furthermore, under our system top management plays an
active role in the approval of basic policies for risk management.
In the case of credit and market risk, we set maximum risk
capital limits, which indicate the maximum risk that may be taken
during the period, taking account the level of stress stipulated in
business plans. In addition, for operational risk, we also allocate
risk capital, and, for the Group as a whole, we set total risk capital
allocations within SMFG’s capital. Risk capital limits are subdivided
into guidelines or ceilings for each business including VaR and loss
limits. Therefore, by strictly observing the VaR and loss limits, and
other factors, SMFG maintains the soundness of the Group as a
The decision-making process for addressing credit, market, and
whole.
liquidity risk at the operating level is strengthened by the Credit
Risk Management Committee and the Market Risk Management
In this framework, risk capital includes credit concentration
risk and interest rate risk in the banking book which are taken into
■ Risk Management Framework
Framework
Risk Category
Credit Risk
Credit risk is the possibility of a loss arising from a credit event, such as deterioration in the financial condition of
a borrower, that causes an asset (including off-balance sheet transactions) to lose value or become worthless.
Market
Risk
Risk
Capital-Based
Management
Banking Risk/Trading Risk
Strategic Equity Investment Risk
Market risk is the possibility that fluctuations in interest rates, foreign exchange rates, stock prices,
or other market prices will change the market value of financial products, leading to a loss.
Other Market-Related Risks
Operational Risk
Processing Risk
System Risk
Operational risk is the possibility of losses arising from inadequate or failed internal
processes, people, and systems or from external events.
Processing risk is the possibility of losses arising from negligent processing by
employees, accidents, or unauthorized activities.
System risk is the possibility of a loss arising from the failure, malfunction, or
unauthorized use of computer systems.
ALM/
Funding Gap
Liquidity Risk
Liquidity risk is the risk that there may be difficulties in raising funds needed for settlements,
as a result of the mismatching of uses of funds and sources of funds or unexpected outflows
of funds, which may make it necessary to raise funds at higher rates than normal levels.
Management
by Risk Type
Other Risks
(Settlement Risk and Others)
—
34
SMFG 2013
account under the Pillar 2 of Basel Capital Accord. In addition, we
risk-weighted assets.
conduct risk capital-based management activities on a consolidated
(a) Additional recognition of counterparty risk in derivative trans-
basis, including each Group company.
actions (Credit Valuation Adjustment risk)
Liquidity risk is managed within the framework by setting upper
New capital charges for market-price fluctuation risk of credit due to
limit for funding gap, etc. Other risk categories are managed with
deteriorated creditworthiness of a counterparty (counterparty for a
procedures closely attuned to the nature of the risk, as described in
derivatives transaction).
the following paragraphs.
(2) Stress Testing
(a) Use of stress testing in business operations
In the current volatile business environment, stress testing to
analyze and estimate the adverse effects of events such as an eco-
nomic recession and market volatility on the business and financial
conditions of financial institutions is increasingly essential.
When establishing a management plan or as required, we cre-
ate some scenarios such as a global economic slowdown or a JGB
rate rising sharply, and conduct stress testing to appraise the likely
financial impact on the Group, so that we can prepare action to deal
(b) Increase in risk weight on exposures to financial institutions
A multiplier of 1.25 is applied to the correlation parameter of all
exposures to financial institutions.
(c) Capital charge on exposures to central counterparty (CCP)
New capital charges on the exposure related to CCP which was not
levied for the equity capital pursuant to Basel II.
(d) Revised definition of capital
Certain items deducted from capital in Basel II are now required to
be recorded as risk-weighted assets.
■ Main impact on risk-weighted assets in the transition to
with emerging stress events as they occur in advance.
Basel III
We also have in place a system enabling flexible control of
Sumitomo Mitsui Financial Group (Consolidated)
(¥ trillion)
operations at a time of sudden changes in our business environ-
ment, by having a regular meetings between the Risk Management
Unit and the business units and relevant departments for the pur-
pose of reaching a common understanding of the macroeconomic
environment, discussing stress events impacting business opera-
tions, and reviewing responses at the time of occurrence of such
stress events.
(b) Implementation process
Implementation of stress-testing falls broadly into two processes,
establishment of scenarios and analysis and full appraisal of finan-
cial impact. Based on the economic environment and global trends
at the time, highly probable scenarios on macroeconomic indica-
tors including GDP, stock price, interest rate and foreign exchange
rate are created. Based on the degree of macroeconomic impact
of each of the established scenarios on various different financial
items, we analyze and fully appraise the impact on financial items
such as the common equity Tier 1 ratios etc.
Implementation of Basel Capital Accord
Basel III is an international agreement on minimum capital require-
Impact on
risk-weighted assets
Additional recognition of counterparty
risk in derivative transactions
Increase in risk weight on exposures to
financial institutions
Capital charge on exposures to
central counterparty (CCP)
Revised definition of capital
+2.4
+1.2
+0.1
+2.3
Details of our initiatives are provided below, and detailed informa-
tion on the capital ratio is provided in the discussion on Capital Ratio
Information appearing in the Financial Section and Corporate Data.
Credit Risk
1. Basic Approach to Credit Risk Management
(1) Definition of Credit Risk
Credit risk is the possibility of a loss arising from a credit event, such
as deterioration in the financial condition of a borrower, that causes
an asset (including off-balance sheet transactions) to lose value or
ments for internationally active banks. The standard has been
become worthless.
applied in Japan since March 31, 2013.
Overseas credits also include an element of country risk, which
The framework of Basel III is a continuation of Basel II, with
is closely related to credit risk. This is the risk of loss caused by
multiple approaches to calculating capital requirements. With regard
changes in foreign exchange, or political or economic situations.
to credit risk, SMFG has been using the Advanced Internal Ratings-
Based (AIRB) approach since March 31, 2009, and for operational
risk the Advanced Measurement Approach (AMA), since March 31,
2008.
The following are four major changes associated with the transi-
tion from Basel II to Basel III, and their respective implications on
(2) Fundamental Principles for Credit Risk Management
All Group companies follow the fundamental principles established
by SMFG to assess and manage credit risk on a Groupwide basis
and further raise the level of accuracy and comprehensiveness of
Groupwide credit risk management. Each Group company must
comprehensively manage credit risk according to the nature of its
business, and assess and manage credit risk of individual loans and
35
SMFG 2013
credit portfolios quantitatively and using consistent standards.
Credit risk is the most significant risk to which SMFG is
2. Credit Risk Management System
At SMBC, the Credit & Investment Planning Department within
exposed. Without effective credit risk management, the impact of
the Risk Management Unit is responsible for the comprehensive
the corresponding losses on operations can be overwhelming.
management of credit risk. This department drafts and administers
The purpose of credit risk management is to keep credit risk
credit policies, the internal rating system, credit authority guidelines,
exposure to a permissible level relative to capital, to maintain the
and credit application guidelines, and manages non-performing
soundness of Groupwide assets, and to ensure returns commen-
loans (NPLs) and other aspects of credit portfolio management. The
surate with risk. This leads to a loan portfolio that achieves high
department also cooperates with the Corporate Risk Management
returns on capital and assets.
Department in quantifying credit risk (risk capital and risk-weighted
(3) Credit Policy
SMFG’s Group credit policy comprises clearly stated universal
assets) and controls the bank’s entire credit risk. Further, the Credit
Portfolio Management Department within the Credit & Investment
and basic operating concepts, policies, and standards for credit
Planning Department has been strengthening its active portfolio
operations, in accordance with our business mission and rules of
management function for stable credit portfolios mainly through
conduct.
credit derivatives and the sales of loans.
SMFG is promoting the understanding of and strict adherence
The Credit Departments within each business unit conduct
to its Group credit policy among all its managers and employees.
credit risk management along with branches, for loans handled by
By fostering a culture of appropriate levels of risk-taking, and by
their units and manage their units’ portfolios. The credit approval
providing still high-value-added financial services, SMFG aims to
authority is determined based on the credit amount and internal
enhance shareholder value and play a key contributory role in the
grades, while credit departments focus on the analysis and man-
community.
agement of customers and transactions with relatively high credit
risk.
■ SMBC’s Credit Risk Management System
Board of Directors
Corporate Auditors
Management Committee
External Audit (Auditing Firm)
Risk Management Unit
Corporate Risk Management Dept.
(cid:127)Aggregates risk for comprehensive management
(cid:127)Plans and proposes risk quantification methods
Credit & Investment Planning Dept.
(cid:127)Aggregates credit risk for unified management
(cid:127)Plans and proposes basic credit policies
(cid:127)Drafts, administers, and examines internal rating system
Credit Portfolio Management Dept.
(cid:127)Undertakes active portfolio management
Internal Audit Unit
Internal Audit Dept.
(cid:127)Audits credit risk management
Credit Review Dept.
(cid:127)Audits self-assessments, grading (obligors and facilities), and
effectiveness of write-offs and reserves
Corporate Services Unit
Credit Administration Dept.
(cid:127)Manages problem assets (plans, implements corporate rehabilitation
program, sells off the revitalized company)
Consumer Banking Unit
Middle Market Banking Unit
Corporate Banking Unit
International Banking Unit
Business Units
Credit Dept.
Credit Dept.
I & II
Credit Dept.
Credit for Individuals
Small and Medium-Sized Enterprises
Large Domestic Corporations
Structured Finance Credit Dept.
Structured Finance
(Investment Banking Unit, Japan)
Credit Dept., Americas Div.
Credit Dept., Europe Div.
Asia Credit Dept.
Credit Management Dept.
Overseas Corporations
Structured Finance
Corporate Research Dept.
(cid:127)Industry trend research
(cid:127)Credit assessment of major industry players
Credit
Dept.
36
SMFG 2013
Through industrial and sector-specific surveys, and studies of
borrower and loan using an internal rating system, and quantify that
individual companies, the Corporate Research Department works to
risk for control purposes.
form an accurate idea of the circumstances of borrower companies
(a) Internal Rating System
and quickly identify those with potentially troubled credit positions as
There is an internal rating system for each asset control category
well as promising growth companies.
set according to portfolio characteristics. For example, credits to
The Credit Administration Department of the Corporate Services
commercial and industrial (C&I) companies, individuals for business
Unit is responsible for handling NPLs of borrowers classified as
purposes (domestic only), sovereigns, public-sector entities, and
potentially bankrupt or lower, and draws up plans for their workouts,
financial institutions are assigned an “obligor grade,” which indi-
including write-offs. It works to efficiently reduce the amount of NPLs
cates the borrower’s creditworthiness, and/or “facility grade,” which
through Group company SMBC Servicer Co., Ltd., which engages in
indicates the collectibility of assets taking into account transaction
related services, and by such means as the sell-off of claims.
conditions such as guarantee/collateral, and tenor. An obligor grade
The Internal Audit Unit, operating independently of the business
is determined by first assigning a financial grade using a financial
units, audits asset quality, accuracy of gradings and self-assessment,
strength grading model and data obtained from the obligor’s
and state of credit risk management, and reports the results directly
financial statements. The financial grade is then adjusted taking
to the Board of Directors and the Management Committee.
into account the actual state of the obligor’s balance sheet and
SMBC has established the Credit Risk Committee, as a con-
qualitative factors to derive the obligor grade. In the event that the
sultative body, to round out its oversight system for undertaking
borrower is domiciled overseas, internal ratings for credit are made
flexible and efficient control of credit risk, and ensuring the overall
after taking into consideration country rank, which represents an
soundness of the bank’s loan operations.
3. Credit Risk Management Methods
(1) Credit Risk Assessment and Quantification
At SMBC, to effectively manage the risk involved in individual loans
as well as the credit portfolio as a whole, we first acknowledge that
every loan entails credit risks, assess the credit risk posed by each
assessment of the credit quality of each country, based on its politi-
cal and economic situation, as well as its current account balance
and external debt. Self-assessment is the obligor grading process
for assigning lower grades, and the borrower categories used in
self-assessment are consistent with the obligor grade categories.
Obligor grades and facility grades are reviewed once a year,
and, whenever necessary, such as when there are changes in the
credit situation.
■SMBC’s Obligor Grading System
There are also grading systems for small and medium-sized
Obligor Grade
Domestic
(C&I), etc.
Overseas
(C&I), etc.
Definition
J1
G1
Very high certainty of debt repayment
J2
G2
High certainty of debt repayment
J3
G3
Satisfactory certainty of debt repayment
Borrower
Category
Financial Reconstruction
Act Based Disclosure
Category
(Domestic)
Normal
Borrowers
J4
G4
Debt repayment is likely but this could change in cases of
significant changes in economic trends or business
environment
J5
G5
No problem with debt repayment over the short term, but not
satisfactory over the mid to long term and the situation could
change in cases of significant changes in economic trends or
business environment
J6
G6
Currently no problem with debt repayment, but there are
unstable business and financial factors that could lead to debt
repayment problems
J7
G7
Close monitoring is required due to problems in meeting loan
terms and conditions, sluggish/unstable business, or financial
problems
Borrowers
Requiring Caution
J7R
G7R
(Of which Substandard Borrowers)
Substandard Borrowers
Substandard Loans
J8
G8
Currently not bankrupt, but experiencing business difficulties,
making insufficient progress in restructuring, and highly
likely to go bankrupt
J9
G9
Though not yet legally or formally bankrupt, has serious
business difficulties and rehabilitation is unlikely; thus,
effectively bankrupt
J10
G10
Legally or formally bankrupt
Potentially
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Bankrupt
Borrowers
Doubtful Assets
Bankrupt and
Quasi-Bankrupt
Assets
Normal Assets
of main assets following the procedures manual
once a year, to ensure their effectiveness and
enterprises (SME) loans, loans to individuals,
and project finance and other structured finance
tailored according to the risk characteristics of
these types of assets.
The Credit & Investment Planning Department
centrally manages the internal rating systems,
and properly designs, operates, supervises, and
validates the grading models. It validates the
grading models (including statistical validation)
suitability.
(b) Quantification of Credit Risk
Credit risk quantification refers to the process of
estimating the degree of credit risk of a portfolio
or individual loan taking into account not just
the obligor’s Probability of Default (PD), but also
the concentration of risk in a specific customer
or industry and the loss impact of fluctuations in
the value of collateral, such as real estate and
securities.
Specifically, first, the PD by grade, Loss Given
Default (LGD), credit quality correlation among
37
SMFG 2013
obligors, and other parameter values are estimated using historical
of clarifying lending conditions utilizing financial covenants.
data of obligors and facilities stored in a database to calculate the
SMBC is also making steady progress in streamlining its credit
credit risk. Then, based on these parameters, we run a simulation of
assessment process. To respond proactively and promptly to cus-
simultaneous default using the Monte Carlo method to calculate our
tomers’ funding needs—particularly those of SMEs—we employ a
maximum loss exposure to the estimated amount of the maximum
standardized credit risk assessment process for SMEs that uses a
losses that may be incurred. Based on these quantitative results,
credit-scoring model. With this process, we are building a regime
we allocate risk capital.
for efficiently marketing our Business Select Loan and other SME
Risk quantification is also executed for purposes such as to
loans.
determine the portfolio’s risk concentration, or to simulate economic
In the field of housing loans for individuals, we employ a credit
movements (stress tests), and the results are used for making
assessment model based on credit data amassed and analyzed
optimal decisions across the whole range of business operations,
by SMBC over many years. This model enables our loan officers
including formulating business plans and providing a standard
to efficiently make rational decisions on housing loan applications,
against which individual credit applications are assessed.
and to reply to the customers without delay. It also facilitates the
(2) Framework for Managing Individual Loans
(a) Credit Assessment
At SMBC, credit assessment of corporate loans involves a variety
of financial analyses, including cash flow, to predict an enterprise’s
capability of loan repayment and its growth prospects. These
quantitative measures, when combined with qualitative analyses of
industrial trends, the enterprise’s R&D capabilities, the competitive-
ness of its products or services, and its management caliber, result
in a comprehensive credit assessment. The loan application is
analyzed in terms of the intended utilization of the funds and the
repayment schedule. Thus, SMBC is able to arrive at an accurate
and fair credit decision based on an objective examination of all
relevant factors.
Increasing the understandability to customers of loan conditions
and approval standards for specific borrowing purposes and loan
categories is a part of SMBC’s ongoing review of lending practices,
which includes the revision of loan contract forms with the chief aim
■SMBC’s Credit Monitoring System
effective management of credit risk, as well as the flexible setting of
interest rates.
We also provide loans to individuals who rent out properties
such as apartments. The loan applications are subjected to a
precise credit risk assessment process utilizing a risk assessment
model that factors in the projected revenue from the rental busi-
ness. The process is also used to provide advice to such customers
on how to revise their business plans.
(b) Credit Monitoring System
At SMBC, in addition to analyzing loans at the application stage,
the Credit Monitoring System is utilized to reassess obligor grades
and review self-assessment and credit policies so that problems
can be detected at an early stage, and quick and effective action
can be taken. The system includes periodic monitoring carried out
each time an obligor enterprise discloses financial results, as well
as continuous monitoring performed each time credit conditions
change, as indicated in the diagram below.
Obligor Information
Processing
Registration
of Financial
Statements/
Creation and
Revision of
Corporate
Card
Flow of Obligor Grading/Grading Outlook/Credit Policies/Action Plans/Facility Grading Assignment
Nonconsoli-
dated
Financial
Grade
Consolidated
Financial
Grade
Effective
Financial
Grade
Not Flagged
Flagging
According to
Self-
Assessment
Criteria
Flagged
Self-Assessment
Logic
Quantitative
Assessment
Financial
Assessment
Credit Status
Qualitative
Assessment
Normal
Borrowers
Borrowers
Requiring
Caution
Potentially
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Bankrupt
Borrowers
Grading Outlook Assessment
Performance
Trends
+
Qualitative
Risk
Factors
Final
Obligor
Grade
•Positive
•Flat
•Negative
Determination of
Credit Policies
Credit Policy Segment
Policy for Handling
Each Individual
Company
Action Plan Formulation
Restructuring
Feasibility
Basic
Approach
Specific
Action Plan
Facility Grading Assignment
38
Obligor Information
Processing
Registration
of Financial
Statements/
Creation and
Revision of
Corporate
Card
Flow of Obligor Grading/Grading Outlook/Credit Policies/Action Plans/Facility Grading Assignment
Nonconsoli-
dated
Financial
Grade
Consolidated
Financial
Grade
Effective
Financial
Grade
Not Flagged
Flagging
According to
Self-
Assessment
Criteria
Flagged
Self-Assessment
Logic
Quantitative
Assessment
Financial
Assessment
Credit Status
Qualitative
Assessment
Normal
Borrowers
Borrowers
Requiring
Caution
Potentially
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Bankrupt
Borrowers
Final
Obligor
Grade
Grading Outlook Assessment
Performance
Trends
+
Qualitative
Risk
Factors
•Positive
•Flat
•Negative
Determination of
Credit Policies
Credit Policy Segment
Policy for Handling
Each Individual
Company
Action Plan Formulation
Restructuring
Feasibility
Basic
Approach
Specific
Action Plan
Facility Grading Assignment
SMFG 2013
(3) Framework for Credit Portfolio Management
In addition to managing individual loans, SMBC applies the follow-
ensuring SMBC’s asset quality and calculating the appropriate level
of write-offs and provisions. Each asset is assessed individually
ing basic policies to the management of the entire credit portfolio to
for its security and collectibility. Depending on the borrower’s cur-
maintain and improve its soundness and profitability over the mid to
rent situation, the borrower is assigned to one of five categories:
long term.
(a) Risk-Taking within the Scope of Capital
Normal Borrowers, Borrowers Requiring Caution, Potentially
Bankrupt Borrowers, Effectively Bankrupt Borrowers, and Bankrupt
To keep credit risk exposure to a permissible level relative to capital,
Borrowers. Based on the borrower’s category, claims on the bor-
SMBC sets credit risk capital limits for internal control purposes.
rower are classified into Classification I, II, III, and IV assets accord-
Under these limits, separate guidelines are issued for each business
ing to their default and impairment risk levels, taking into account
unit and marketing unit, such as for real estate finance, fund invest-
such factors as collateral and guarantees. As part of our efforts to
ment, and investment in securitization products. Regular monitoring
bolster risk management throughout the Group, our consolidated
is conducted to make sure that these guidelines are being followed,
subsidiaries carry out self-assessment in substantially the same
thus ensuring appropriate overall management of credit risk.
manner.
(b) Controlling Concentration Risk
As the equity capital of the bank may be materially impaired in the
Borrower Categories, Defined
event that the credit concentration risk becomes apparent, SMBC
implements measures to manage credit towards an industrial sector
Normal Borrowers
Borrowers with good earnings performances and no
significant financial problems
with excessive risk concentration, introduces credit limit guideline
Borrowers Requiring Caution
Borrowers identified for close monitoring
and conducts intensive loan review for obligors with large exposure.
Potentially Bankrupt Borrowers
To manage country risk, SMBC also has credit limit guidelines
based on each country’s creditworthiness.
Effectively Bankrupt Borrowers
Borrowers perceived to have a high risk of falling into
bankruptcy
Borrowers that may not have legally or formally declared
bankruptcy but are essentially bankrupt
(c) Researching Borrowers More Rigorously and Balancing Risk
Bankrupt Borrowers
Borrowers that have been legally or formally declared bankrupt
and Returns
Against a backdrop of drastic change in the business environ-
ment, SMBC rigorously researches borrower companies’ actual
conditions. It runs credit operations on the basic principle of earning
returns that are commensurate with the credit risk involved, and
makes every effort to reduce credit and capital costs as well as
general and administrative expenses.
(d) Prevention and Reduction of Non-Performing Loans
On NPLs and potential NPLs, SMBC carries out regular loan
reviews to clarify handling policies and action plans, enabling it to
swiftly implement measures to prevent deterioration of borrowers’
business situations, support business recoveries, collect on loans,
and enhance loan security.
(e) Toward Active Portfolio Management
SMBC makes active use of credit derivatives, loan asset sales, and
other instruments to proactively and flexibly manage its portfolio to
stabilize credit risk.
(4) Self-Assessment, Asset Write-Offs and Provisions,
and Disclosure of Problem Assets
(a) Self-Assessment
SMBC conducts rigorous self-assessment of asset quality using
criteria based on the Financial Inspection Manual of the Financial
Services Agency and the Practical Guideline published by the
Japanese Institute of Certified Public Accountants. Self-assessment
is the latter stage of the obligor grading process for determining the
borrower’s ability to fulfill debt obligations, and the obligor grade
criteria are consistent with the categories used in self-assessment.
At the same time, self-assessment is a preparatory task for
Asset Classifications, Defined
Classification I
Classification II
Classification III
Assets not classified under Classifications II, III, or IV
Assets perceived to have an above-average risk of
uncollectibility
Assets for which final collection or asset value is very doubt-
ful and which pose a high risk of incurring a loss
Classification IV
Assets assessed as uncollectible or worthless
(b) Asset Write-Offs and Provisions
In cases where claims have been determined to be uncollectible,
or deemed to be uncollectible, write-offs signify the recognition of
losses on the account books with respect to such claims. Write-
offs can be made either in the form of loss recognition by offsetting
uncollectible amounts against corresponding balance sheet items,
referred to as a direct write-off, or else by recognition of a loan
loss provision on a contra-asset account in the amount deemed
uncollectible, referred to as an indirect write-off. Recognition of
indirect write-offs is generally known as provision for the reserve for
possible loan losses.
SMBC’s write-off and provision criteria for each self-assessment
borrower category are shown in the next page. As part of our over-
all measures to strengthen risk management throughout the Group,
all consolidated subsidiaries use substantially the same standards
as SMBC for write-offs and provisions.
39
SMFG 2013
Self-Assessment
Borrower Categories
Standards for Write-Offs and
Provisions
self-assessments, asset write-offs and provisions, and disclosure of
problem assets at March 31, 2013, please refer to page 169.
Normal Borrowers
Borrowers Requiring Caution
Potentially Bankrupt Borrowers
Effectively Bankrupt/ Bankrupt
Borrowers
General reserve
Notes
Specific reserve
The expected loss amount for the next 12 months is
calculated for each grade based on the grade’s historical
bankruptcy rate, and the total amount is recorded as “provi-
sion for the general reserve for possible loan losses.”
These assets are divided into groups according to the level
of default risk. Amounts are recorded as provisions for the
general reserve in proportion to the expected losses based
on the historical bankruptcy rate of each group. The groups
are “claims on Substandard Borrowers” and “claims on other
Borrowers Requiring Caution.” The latter group is further
subdivided according to the borrower’s financial position,
credit situation, and other factors. Further, when cash flows
can be estimated reasonably accurately, the discounted
cash flow (DCF) method is applied mainly to large claims for
calculating the provision amount.
A provision for the specific reserve for possible loan losses
is made for the portion of Classification III assets (calculated
for each borrower) not secured by collateral, guarantee, or
other means. Further, when cash flows can be estimated
reasonably accurately, the DCF method is applied mainly to
large claims for calculating the provision amount.
Classification III asset and Classification IV asset amounts
for each borrower are calculated, and the full amount of
Classification IV assets (deemed to be uncollectible or of no
value) is written off in principle and provision for the specific
reserve is made for the full amount of Classification III assets.
Provisions made in accordance with general inherent default
risk of loans, unrelated to specific individual loans or other
claims
Provisions made for claims that have been found uncollect-
ible in part or in total (individually evaluated claims)
Discounted Cash Flow Method
SMBC uses the discounted cash flow (DCF) method to calculate
the provision amounts for large claims on Substandard Borrowers
and Potentially Bankrupt Borrowers when the cash flow from
repayment of principal and interest received can be estimated
reasonably accurately. SMBC then makes provisions equivalent
to the excess of the book value of the claims over the said cash
inflow discounted by the initial contractual interest rate or the
effective interest rate at the time of origination. One of the major
advantages of the DCF method over conventional methods of
calculating the provision amount is that it enables effective evalua-
tion of each individual borrower. However, as the provision amount
depends on the future cash flow estimated on the basis of the
borrower’s business reconstruction plan and the DCF formula
input values, such as the discount rate and the probability of the
borrower going into bankruptcy, SMBC makes every effort to uti-
lize up-to-date and correct data to realize the most accurate esti-
mates possible.
(c) Disclosure of Problem Assets
Problem assets are loans and other claims of which recovery of
either principal or interest appears doubtful, and are disclosed in
accordance with the Banking Act (in which they are referred to
as “risk-monitored loans”) and the Financial Reconstruction Act
(where they are referred to as “problem assets”). Problem assets are
classified based on the borrower categories assigned during
self-assessment. For detailed
information on
results of
40
4. Risk Management of Marketable Credit Transactions
Financial products, such as investments in funds, securitized
products, and credit derivatives, that bear indirect risk arising from
underlying assets such as bonds and loan obligations, are consid-
ered to be exposed to both credit risk from the underlying assets as
well as “market risk” and “liquidity risk” that arise from their trading
as financial products. This is referred to as marketable credit risk.
For these types of products, we manage credit risk analyzing
and assessing the characteristics of the underlying assets, but, for
the sake of complete risk management, we also apply the methods
for management of market and liquidity risks.
In addition, we have established guidelines based on the char-
acteristics of these types of risk and appropriately manage the risk
of losses.
Market and Liquidity Risks
1. Basic Approach to Market and Liquidity Risk
Management
(1) Definitions of Market and Liquidity Risks
Market risk is the possibility that fluctuations in interest rates, foreign
exchange rates, stock prices, or other market prices will change the
market value of financial products, leading to a loss.
Liquidity risk is the risk that there may be difficulties in raising
funds needed for settlements, as a result of the mismatching of
uses of funds and sources of funds or unexpected outflows of
funds, which may make it necessary to raise funds at higher rates
than normal levels.
(2) Fundamental Principles for Market and Liquidity
Risk Management
SMFG is working to further enhance the effectiveness of its quan-
titative management of market and liquidity risks across the entire
Group by setting allowable risk limits; ensuring the transparency
of the risk management process; clearly separating front-office,
middle-office and back-office operations; and establishing a highly
efficient system of mutual checks and balances.
2. Market and Liquidity Risk Management System
On the basis of SMFG’s Groupwide basic policies for risk
management, SMBC’s Board of Directors authorizes important
matters relating to the management of market and liquidity risks,
such as basic policies and risk limits, which are decided by the
Management Committee. Additionally, at SMBC, the Corporate Risk
Management Department, which is the planning department of the
Risk Management Unit, an independent of the business units that
directly handle market transactions, manages market and liquidity
risks in an integrated manner. The Corporate Risk Management
SMFG 2013
■ SMBC’s Market Risk and Liquidity Risk Management
SMBC’s limits on market and liquidity risks, and to review and dis-
System
Market
Risk
Manage-
ment
Board of Directors
Management Committee
Market Risk Management Committee
ALM Committee
Board Member in Charge of
Risk Management Unit
Policy
Reporting
Liquidity
Risk
Manage-
ment
Corporate
Auditors
External
Audit
(auditing firm)
Internal
Audit Dept.
Back Office
(Back offices of Japan
and overseas branches)
Middle Office
(Corporate Risk Management Dept.)
Inspection and verification
of transactions
Final approval and Management of Model,
new products and risk limits
Managing Depts.
Other market-
related
operations
Market
operations
(Treasury Unit)
Market
operations
(International
Banking Unit)
Market
operations
(Group companies)
cuss the SMBC’s ALM operation.
To prevent unforeseen processing errors as well as fraudulent
transactions, it is important to establish a system of checks on the
business units (front office). At SMBC, both the processing depart-
ments (back office) and the administrative departments (middle
office) conduct the checks. In addition, the Internal Audit Unit of
SMBC periodically performs comprehensive internal audits to verify
that the risk management framework is functioning properly.
3. Market and Liquidity Risk Management Methods
(1) Market Risk Management
SMBC manages market risk by setting maximum limits for VaR and
maximum loss. These limits are set within the “risk capital limit”
which is determined taking into account the bank’s shareholders’
equity and other principal indicators of the bank’s financial position
and management resources.
Market risk can be divided into various factors: foreign
exchange rates, interest rates, equity prices and option risks. SMBC
manages each of these risk categories by employing the VaR
method as well as supplemental indicators suitable for managing
the risk of each risk factor, such as the BPV.
Please note that, in the case of interest rate fluctuation risk, the
methods for recognizing the dates for maturity of demand depos-
its (current accounts and ordinary deposit accounts that can be
withdrawn at any time) and the method for estimating the time of
cancellation prior to maturity of time deposits and consumer loans
differ substantially. At SMBC, the maturity of demand deposits
Front Office
Front/Middle/Back Offices
that are expected to be left with the bank for a prolonged period is
regarded to be five years (2.5 years on average). The cancellation
prior to maturity of time deposits and consumer loans is estimated
based on historical data.
Department not only monitors the current risk situations, but also
(a) VaR Results
reports regularly to the Management Committee and the Board
The results of VaR calculations for fiscal 2012 are shown in the table
of Directors. Furthermore, SMBC’s ALM Committee meets on a
below. SMBC’s internal VaR model makes use of historical data
monthly basis to examine reports on the state of observance of
to prepare scenarios for market fluctuations and, by conducting
■VaR Results
June 2012
Sept. 2012
Dec. 2012
Mar. 2013
Maximum
Minimum
Average
SMFG (consolidated)
SMBC (consolidated)
SMBC (nonconsolidated)
Trading Book
Banking Book
Trading Book
Banking Book
Trading Book
Banking Book
(Billions of yen)
8.2
11.4
20.9
15.0
25.9
7.1
13.5
30.4
31.2
26.5
31.1
35.2
23.6
29.5
7.3
10.8
20.3
14.3
24.9
6.3
12.7
29.7
30.5
25.8
30.4
34.4
23.1
28.8
2.9
2.4
5.2
2.5
6.7
1.0
3.0
26.6
27.4
22.8
27.4
30.9
20.3
25.7
Note: VaR for a one-day holding period with a one-sided confidence interval of 99.0% [computed daily using the historical simulation
method (based on four years of historical observations)].
41
SMFG 2013
Actual Profit or Loss (¥ billion)
Actual Profit or Loss (¥ billion)
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
Actual Profit or Loss (¥ billion)
0
2.0
4.0
6.0
8.0
10.0
VaR (¥ billion)
0
2.0
4.0
6.0
8.0
10.0
VaR (¥ billion)
SMBC (nonconsolidated)
Actual Profit or Loss (¥ billion)
0
2.0
4.0
6.0
8.0
10.0
VaR (¥ billion)
0
2.0
4.0
6.0
8.0
10.0
VaR (¥ billion)
SMBC (consolidated)
Actual Profit or Loss (¥ billion)
0
2.0
4.0
6.0
8.0
10.0
VaR (¥ billion)
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
■Back-Testing Results (Trading Book)
SMFG (consolidated)
Actual Profit or Loss (¥ billion)
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
0
2.0
4.0
6.0
8.0
10.0
VaR (¥ billion)
■ Decline in Economic Value Based on Outlier Framework
SMBC (consolidated)
SMBC (nonconsolidated)
March 31, 2012 March 31, 2013 March 31, 2012 March 31, 2013
(Billions of yen)
240.2
144.3
87.3
1.3
96.2
60.5
6.8
16.5
233.9
142.7
85.5
1.1
88.6
56.3
4.6
16.5
Impact of Yen
interest rates
Impact of U.S. dollar
interest rates
Impact of Euro
interest rates
Percentage of total capital
2.6%
1.0%
2.6%
1.0%
Notes: 1. “Decline in economic value” is the decline of present value after interest
rate shocks (1st and 99th percentile of observed interest rate changes
using a 1-year holding period and 5 years of observations).
6.0
2. Figures for the year ended March 31, 2012 are percentages of Tier 1 +
8.0
Tier 2.
10.0
VaR (¥ billion)
■ Composition, by Industry, of Listed Equity Portfolio
(%)
25
20
15
10
5
0
i
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(March 31, 2013)
SMBC Portfolio
TOPIX
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Total
Actual Profit or Loss (¥ billion)
simulations of gains and losses, the model estimates the maximum
losses that may occur (this is known as the historical simulation
method). This internal SMBC model is evaluated periodically by
an independent auditing firm to assess its appropriateness and
accuracy.
4.0
(b) Back-Testing Results
Actual Profit or Loss (¥ billion)
At SMBC, the relationship between the VaR calculated with the
6.0
model and the actual profit and loss data is back-tested daily. The
back-testing results for SMBC’s trading accounts for fiscal 2012 are
2.0
shown at the top of this page. The data point below the diagonal
0
line indicates a loss exceeding VaR for that day. Only one day during
-2.0
the period had an actual loss that exceeded VaR. It demonstrates
-4.0
that the SMBC VaR model is sufficiently reliable, with a one-sided
4.0
8.0
0
confidence interval of 99.0%.
10.0
VaR (¥ billion)
-6.0
6.0
2.0
2.0
4.0
0
(c) Stress Testing
The market occasionally undergoes extreme fluctuations that
exceed projections. To manage market risk, therefore, it is important
to run simulations of unforeseen situations that may occur in finan-
cial markets (stress testing). SMBC conducts stress tests regularly,
assuming various scenarios, and has measures in place for irregular
Actual Profit or Loss (¥ billion)
events.
(d) Outlier Framework
In the event the economic value of a bank declines by more than
20% of total capital as a result of interest rate shocks, that bank
would fall into the category of “outlier bank,” as stipulated under the
Pillar 2 of Basel Framework.
This ratio, known as the outlier ratio, was 1.0% at SMBC on a
consolidated basis at March 31, 2013, substantially below the 20%
8.0
0
criterion.
10.0
VaR (¥ billion)
2.0
6.0
4.0
(e) Managing Risk of Stocks Held for Strategic Purposes
The Corporate Risk Management Department establishes limits on
allowable risk for strategic equity investments, and monitors the
observance of those limits in order to control stock price fluctuation
risk.
SMBC has been reducing its strategic equity investments and
the outstanding amount is now significantly below the amount
of Tier 1 capital, the maximum level permitted under the Act on
Financial Institutions (,etc.)’, Limits for Share, etc. Holdings.
42
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
SMFG 2013
(2) Liquidity Risk Management
At SMBC, liquidity risk is regarded as one of the major risks.
conduct of operational risk management across the entire Group.
Under these regulations, SMFG and SMBC have been working to
SMBC’s liquidity risk management is based on a framework consist-
enhance the operational risk management framework across the
ing of “setting upper limits for funding gaps,” “maintaining highly liq-
whole Group by establishing an effective system for identification,
uid supplementary funding sources,” and “establishing contingency
assessment, controlling, and monitoring of material operational risks
plans.”
and a system for executing contingency and business continuity
A funding gap means the funding amount required in the future,
plans. Based on the framework of Basel Capital Accord, SMFG has
occurring as a result of mismatched operation and funding. SMBC
been continuously pursuing sophisticated quantification of opera-
manages appropriate funding liquidity by setting the upper limit for
tional risks and advanced Groupwide management.
the funding gap amount, and by avoiding overreliance on short-term
funding. Limits are set Bankwide and for each branch, taking into
account cash management planning, external environment, funding
2. Operational Risk Management System
SMFG has designed and implemented an operational risk manage-
status, characteristics of local currencies of each country and other
ment framework for Groupwide basic policies for risk management.
factors. Additionally, risk limits are set by currency as needed for
At SMBC, the Management Committee makes decisions on
more rigorous management. Limit observance is monitored on a
important matters such as basic policies for operational risk man-
daily basis.
agement, and these decisions are authorized by the SMBC’s Board
Further, the stress tests are regularly conducted by simulating
of Directors. In addition, SMBC has established the system to com-
the situations such as the outflow of deposits or having difficulties
prehensively manage operational risks by setting up the Corporate
funding from the money market, in order to thoroughly comprehend
Risk Management Department to oversee overall management of
the funding amount required when the liquidity risk becomes appar-
operational risks together with other departments responsible for
ent. Additionally, the means of funding are secured for maintaining
processing risks and system risks.
the funding liquidity to supplement the liquidity by holding assets,
As the brief overview, this system operates by collecting and
such as U.S. government bonds, which can be immediately con-
analyzing internal loss data occurred at each department or branch
verted to cash, or establishing the framework for borrowing for
as well as comprehensively specifying scenarios involving opera-
emergency, in order not to affect the funding even during market
tional risks based on the operational procedures of each branch on
disruption.
regular-basis and estimating the loss amount and frequency of the
Furthermore, the contingency plan is developed for respond-
occurrence of such losses based on each scenario. Risk severities
ing to the situation of liquidity risk becoming apparent, by creating
are quantified for each scenario and for those scenarios having high
the detailed action plan such as lowering the upper limit for the
severities the risk mitigation plan will be developed by the relevant
funding gap, according to assumed situations (of normal situation,
department and the status on the progress of such risk mitiga-
concerned situation, critical situation) and respective circumstances.
tion plan will be followed up by the Corporate Risk Management
Operational Risk
1. Basic Approach to Operational Risk Management
(1) Definition of Operational Risk
Operational risk is the risk of loss resulting from inadequate or failed
internal processes, people and systems or from external events.
Specifically, Basel Capital Accord—which, in addition to process-
ing risk and system risk, also covers legal risk, personnel risk, and
physical asset risk—defines the following seven types of events
that may lead to the risk of loss: (1) internal fraud, (2) external fraud,
(3) employment practices and workplace safety, (4) clients, products
and business practices, (5) damage to physical assets, (6) busi-
ness disruption and system failures, and (7) execution, delivery, and
process management.
(2) Fundamental Principles for Operational Risk Management
SMFG and SMBC have set forth the Regulations on Operational
Risk Management to define the basic rules to be observed in the
Department. Furthermore, operational risks are quantified, and
quantitatively managed by utilizing the collected internal loss data
and scenarios.
These occurrences of internal loss data, severity of scenarios
and status on risk mitigation are regularly reported to the director in
charge of the Corporate Risk Management Department. In addition,
there is the Operational Risk Committee, comprising all relevant
units of the bank, where operational risk information is reported and
risk mitigation plans are discussed. In this way, we realize a highly
effective operational risk management framework. The operational
risk situation is also reported to the Management Committee and
the Board of Directors on a regular basis, for review of the basic
policies on operational risk management. Moreover, the bank’s
independent Internal Audit Department conducts periodic audits to
ensure that the operational risk management system is functioning
properly.
43
SMFG 2013
■SMBC’s Operational Risk Management System
Corporate Auditors
External Audit
(Auditing Firm)
Internal Audit Dept.
Board of Directors
Management Committee
Direction
Reporting
Operational Risk Committee
Audit
Board Member in Charge of Risk Management Unit
Direction
Reporting
Corporate Risk Management Dept.
Supervisor of overall operational risk management
Measurement of operational risk
Feedback of measurement results related to operational risk
Monitoring of progress in risk mitigation plans
Generation of scenarios and development of risk
mitigation actions
Reflection of internal loss data, external
loss data and BEICFs in scenarios
Reporting
Reporting
Internal loss data
Head Office departments
Consumer
Banking
Middle Market
Banking
Corporate
Banking
Treasury
Investment
Banking
International
Banking
3. Operational Risk Management Methodology
As previously defined, operational risks cover a wide-range of
by 8%) is calculated. In addition, external loss data and BEICFs
along with internal loss data are used for verifying the assessment
cases, including the risks of losses due to errors in operation,
of scenarios to increase objectivity, accuracy and completeness.
system failures, and natural disasters. Also, operational risk events
SMFG, including the Group companies to which the AMA is
can occur virtually anywhere and everywhere. Thus, it is essential
applied, collect the four elements. This is outlined as follows.
to check whether material operational risks have been overlooked,
monitor the overall status of risks, and manage/control them. To this
Corporate Auditors
Board of Directors
end, it is necessary to be able to quantify risks using a measure-
ment methodology that can be applied to all types of operational
Management Committee
External Audit
(Auditing Firm)
risks, and to comprehensively and comparatively capture the status
Direction
of and changes in potential operational risks of business processes.
Internal Audit Dept.
Also, from the viewpoint of internal control, the measurement meth-
Board Member in Charge of Risk Management Unit
Audit
odology used to create a risk mitigation plan must be such that the
Direction
Auditing of management
and measurement system
implementation of the plan quantitatively reduces operational risks.
Corporate Risk Management Dept.
Reporting
(BEICFs)
At the end of March 2008, SMFG and SMBC adopted the
Operational Risk Management Dept.
Advanced Measurement Approach (AMA) set forth by Basel Capital
Accord for calculation of operational risk equivalent amount. The
Reporting
approach has been utilized for the management of operational risks
since then.
Generation of scenarios and development of risk
mitigation actions through risk control assessments
The basic framework for quantifying operational risks consists
Reflection of internal loss data,
external loss data and BEICFs in scenarios
Measurement of
operational risk
Integrated Operational Risk
Supervisory Dept.
(1) Internal Loss Data
Internal loss data are defined as “the information for events which
Decision and authorization of important matters related
SMFG incur losses due to operational risks.”
to operational risk management
(2) External Loss Data
External loss data are defined as “the information for events which
Reporting
other banks, etc. incur losses due to operational risks.”
Operational Risk Committee
(3) Business Environment and Internal Control Factors
Reporting on operational
risk information,
discussion on measures
for risk mitigation
BEICFs are defined as “factors affecting operational risks which are
control of SMFG.”
associated with conditions of business environment and internal
Feedback of
measurement
results related to
operational risk
(4) Scenario Analysis
and direction for
Scenario analysis is defined as a “methodology which identifies
risk mitigation
Internal loss data
Reporting
assumed cases involving any material operational risks and describe
Head Office departments
them in terms of risk scenario, and estimate the frequency and
severity of risk scenarios.” SMFG’s principal business operations are
applicable for this methodology.
Treasury
Investment
Banking
International
Banking
The purposes of scenario analysis are to identify any potential
risks underlying in our business operations; to measure risks based
on the possibility of occurrence of the said potential risks; and to
review and execute any required measures. Furthermore, another
of internal loss data, external loss data, Business Environment and
Internal Control Factors (BEICFs) and scenario analysis. Out of the
above-mentioned four factors, internal loss data and the results
Consumer
Banking
Middle Market
Banking
Corporate
Banking
of scenario analysis (hereinafter, the “assumption data”) are input
into the internal measurement system (hereinafter, the “quantifica-
tion model”) developed by SMBC; and operational risk equivalent
amount and risk asset (operational risk equivalent amount is divided
44
Decision and authorization of important matters
related to operational risk management
Reporting on operational
risk information,
discussion on measures
for risk mitigation
Auditing of management
and measurement system
SMFG 2013
and loss severity based on the internal loss data and scenario
External Loss Data
Verifi-
cation
Scenario Data
purpose of the scenario analysis is to estimate the frequency of low-
frequency and high-severity events for each scenario (which may be
difficult to estimate using internal loss data alone).
(5) Measurement Using the Quantification Model
The quantification model produces the distribution of loss frequency
data; and it also produces the loss distribution based on the said
distribution of loss frequency (distribution of losses in a year) and
the distribution of loss severity (distribution of loss amount per case)
by making scenarios of the various combination of frequencies
and amount of losses according to the Monte Carlo simulations;
and it calculates the maximum amount of loss expected, due to
operational risks, based on the assumption of one-sided confidence
interval of 99.9% and the holding period of one year. The measure-
■ Basic Framework of Operational Risk Measurement
Internal Loss Data
Data
input
Calculation of
Operational Risk
Equivalent Amount
Using Quantification
Model
BEICFs
Risk Mitigation Initiatives
(6) Risk Mitigation Initiatives
To mitigate risks using the quantitative results of the AMA, SMFG
ment units are SMFG consolidated basis, SMBC consolidated basis
and SMBC implement risk mitigation measures for high severity
and SMBC non-consolidated basis; and it is measured according
scenarios. Furthermore, the risk assets calculated by quantification
to each of seven event types set forth by Basel Capital Accord. The
are allocated to each business unit of SMBC and other Group com-
operational risk equivalent amount is calculated based on AMA by
panies for increasing awareness of operational risks internally in the
simply consolidating the amounts of all event types.
Group companies, improving the effectiveness of their operational
The measurement accuracy is ensured by implementing the
risk management and mitigating operational risks of the entire Group.
regularly conducted verifications of the said quantification model at
pre- and post-occurrences.
Meanwhile, as for the operational risk equivalent amount of
4. Processing Risk Management
Processing risk is the possibility of losses arising from negligent
other Group companies not applicable for AMA and in preparation
processing by employees, accidents, or unauthorized activities.
to become applicable for AMA, it is calculated according to the
SMFG recognizes that all operations entail processing risk.
Basic Indicator Approach (BIA), and the operational risk equivalent
We are, therefore, working to raise the level of sophistication of
amount for SMFG consolidated basis and SMBC consolidated
our management of processing risk across the whole Group by
basis are calculated by consolidating such amount calculated
ensuring that each branch conducts its own regular investigations
based on BIA with the operational risk equivalent amount calculated
of processing risk; minimizing losses in the event of processing
based on AMA.
errors or negligence by drafting exhaustive contingency plans; and
carrying out thorough quantification of the risk under management.
■Measurement Using the Quantification Model
Distribution of Loss Frequency
0.20
0.15
0.10
0.05
0
0
5
10
15
Number of incidents/year
20
Sampling of the
number of losses
from the distribution
(e.g., 5 incidents)
25
30
0.30
0.25
0.20
0.15
0.10
0.05
0
0
Distribution of Loss Severity
2
4
6
8
10
Loss per incident
Sampling of the amounts
of losses corresponding
to the above number of
losses from the distribution
of losses (e.g., 50, 100, 80,
150, 70)
(
f
r
e
q
u
e
n
c
y
)
(
f
r
e
q
u
e
n
c
y
)
P
r
o
b
a
b
i
l
i
t
y
o
f
o
c
c
u
r
r
e
n
c
e
P
r
o
b
a
b
i
l
i
t
y
o
f
o
c
c
u
r
r
e
n
c
e
Repeat (e.g., 1 million times)
Calculate aggregated
annual loss amount
(e.g., 450)
Total
Aggregated Loss Distribution
Frequency x Severity
99.9%
Aggregated annual loss amount
(
f
r
e
q
u
e
n
c
y
)
0.4
0.3
0.2
0.1
0
P
r
o
b
a
b
i
l
i
t
y
o
f
o
c
c
u
r
r
e
n
c
e
45
x conversion factor
99.0%
SMFG 2013
In the administrative regulations of SMBC, in line with
Settlement Risk
Settlement risk is the possibility of a loss arising from a transaction
that cannot be settled as planned. As this risk crosses over numer-
ous risks, including credit, liquidity, processing and system risks, it
is required to appropriately manage according to characteristics of
such risks.
At SMBC, the Transaction Business Planning Department and
the Corporate Risk Management Department jointly manage risks
according to the kinds of risks, and each risk is managed by its
respective department in charge: the Credit & Investment Planning
Department for credit risk, the Corporate Risk Management
Department for liquidity risk, the Operations Planning Department
for processing risk and the IT Planning Department for system risk.
SMFG’s Groupwide basic policies for risk management, the basic
administrative regulations are defined as “comprehending the
risks and costs of administration and transaction processing, and
managing them accordingly,” and “seeking to raise the quality of
administration to deliver high-quality service to customers.” Adding
new policies or making major revisions to existing ones for process-
ing risk management requires the approval of both the Management
Committee and the Board of Directors.
In the administrative regulations, SMBC has also defined specific
rules for processing risk management. The rules allocate processing
risk management tasks among six types of departments: operations
planning departments, compliance departments, operations depart-
ments, transaction execution departments (primarily front-office
departments, branches, and branch service offices), internal audit
departments, and the customer support departments. In addi-
tion, there is a specialized group within the Operations Planning
Department to strengthen administrative procedures throughout the
Group.
5. System Risk Management
System risk is the possibility of a loss arising from the failure, mal-
function, or unauthorized use of computer systems.
SMFG recognizes that reliable computer systems are essential
for the effective implementation of management strategy in view
of the IT revolution. We strive to minimize system risk by drafting
regulations and specific management standards, including a security
policy. We also have contingency plans with the goal of minimizing
losses in the event of a system failure. The development of such a
system risk management system ensures that the Group as a whole
is undertaking adequate risk management.
At SMBC, safety measures are strengthened according to risk
assessment based on the Financial Services Agency’s Financial
Inspection Manual, and the Security Guidelines published by the
Center for Financial Industry Information Systems (FISC).
Computer-related trouble at financial institutions now has great
potential to impact society, with system risk diversifying owing to
advances in IT and expansion of business fields. To prevent any
computer system breakdowns, we have taken numerous measures,
including constant maintenance of our computer system to ensure
steady and uninterrupted operation, duplication of various systems
and infrastructures, and the establishment of a disaster-prevention
system consisting of computer centers in eastern and western
Japan. And to maintain the confidentiality of customer information
and prevent information leaks, sensitive information is encrypted,
unauthorized external access is blocked, and all known counter-
measures to secure data are implemented. There are also contin-
gency plans and training sessions held as necessary to ensure full
preparedness in the event of an emergency. To maintain security,
countermeasures are revised as new technologies and usage pat-
terns emerge.
46
SMFG 2013
Glossary
ALM
Abbreviation for Asset Liability Management
Method for comprehensive management of assets and liabilities, with
appropriate controls on market risk (interest rates, exchange rates, etc.).
LGD
Abbreviation for Loss Given Default
Percentage of loss assumed in the event of default by obligor; ratio of
uncollectible amount of the exposure owned in the event of default.
Advanced Measurement Approach (AMA)
Based on the operational risk measurement methods used in the inter-
nal management of financial institutions, this is a method for obtaining
the operational risk equivalent amount by calculating the maximum
amount of operational risk loss expected over a period of one year, with
a one-sided confidence interval of 99.9%.
Back-testing
Method of verifying the validity of models by comparing the model value
and actual value. For instance, in the case of VaR, comparing and verify-
ing the value of VaR and the profit or loss amount.
Monte Carlo simulation method
General term used for a simulation method which uses random
numbers.
Outlier framework
Monitoring standard for interest rate risk in the banking book, as set
forth in the Pillar 2 of the Basel Capital Accord.
Operational risk equivalent amount
Operational risk capital requirements under the Basel Capital Accord
capital adequacy regulations.
Banking
Market operations which gain profits by controlling interest rates and
term period for assets (funds, bonds, etc.) and liabilities (deposits, etc.).
PD
Abbreviation for Probability of Default
Probability of becoming default by obligor during one year.
Basel II
The Basel Capital Accord, an international agreement, was amended
in June 2004 for ensuring the soundness of banks (minimum capital
requirements) for appropriately responding to the diversification of
banking operations and sophistication of risk management. It has been
implemented in Japan since March 31, 2007.
Basel III
The Basel Capital Accord, an international agreement, was amended in
December 2010 for ensuring the soundness of banks (minimum capital
requirements) for the purpose of enhancing the capabilities of appropri-
ately responding to any financial and economic crisis and reducing risks
which may have originated from financial sector to adversely affect the
actual economy. It has been implemented incrementally since 2013.
Basic Indicator Approach (BIA)
A calculation approach in which an average value for the most recent
three years derived by multiplying gross profit for the financial institution
as a whole by certain level (15%) is deemed to be the operational risk
equivalent amount.
BPV
Abbreviation for Basis Point Value
Potential change in present value of financial product corresponding to
0.01-percentage-point increase in interest rates.
Present value
A future amount of money that has been discounted to reflect its current
value taking into account the interest rate and the extent of credit risk.
Risk capital
The amount of required capital, which is statistically calculated from
the historical market fluctuations, default rates, etc., to cover an unex-
pected loss arising from risks of business operations. It differs from the
minimum regulatory capital requirements, and it is being used in the risk
management framework voluntarily developed by financial institutions for
the purpose of internal management.
Risk factor
Anything which may become a factor for risk. In the case of market risk,
it would be the share price or interest rate; in the case of credit risk, it
would be the default rate or economic environment.
Risk-weighted assets
• Credit risk
Total assets (lending exposures, including credit equivalent amount of
off-balance sheet transactions, etc.) which is reevaluated according to
the level of credit risk.
• Operational risk
Amount derived by dividing the operational risk equivalent amount by
8%.
CCP
Abbreviation for Central Counterparty
In addition to functions of delivering shares, receiving funds, netting
to reduce the unsettled balance (margin settlement), it also serves as
the body guaranteeing the settlement by assuming liabilities, or as an
obligor, it gives instructions to the settlement agency for money transfers
for shares or funds.
Supplementary funding sources for liquidity
Assets or funding method which can be immediately converted to cash
in the event of unexpected occurrence of outgoing funds.
Trading
Market operations which gain profits by taking advantage of fluctuations
of market prices in the short-term or price differences among markets.
Contingency plan
Predetermined countermeasures and procedures for minimizing dam-
ages and losses resulted from foreseen events under the assumption
that unforeseen events such as incidents, accidents and disasters may
occur.
Credit cost
Average losses expected to occur during the coming year.
Historical simulation method
Method of simulating future fluctuations without the use of random num-
bers, by using historical data for risk factors.
Underlying assets
General term used for assets which serve as the source of payments for
principal and interest for securitization exposures, etc.
VaR
Abbreviation for Value at Risk
Forecasted maximum loss incurred by the relevant portfolio under cer-
tain probability.
47
SMFG 2013 Corporate Social Responsibility (CSR)
Key Items of CSR Activities
The key items of our CSR activities are as follows:
First, we shall develop a solid management system by improv-
ing and enhancing corporate governance, internal audit, compliance
and risk management systems.
Second, we shall provide greater value for our four major
groups of stakeholders as follows:
• We shall advance together with our clients by providing highly
valued products and services.
• We shall strive to maintain a sound management and maxi-
mize shareholder value by having appropriate disclosure of
information and improving the internal control system.
• We shall strive to contribute to the society and preserve the
earth’s environment by consistently and proactively involving
and participating in the social and environmental activities and
programs.
• We shall promote free-spirited and open-minded business
culture under which individual employees are respected and
allowed to exercise each individual’s full potential.
Lastly, we shall strive to ultimately contribute to the sustainable
development of society through such activities.
■ CSR Values for SMFG
Contributing to the Sustainable Development of Society
Customers
Shareholders and
the Market
The Environment
and Society
Employees
CSR Group Initiatives
Highly-valued
products and
services
Sound
Management
Social and
environmental
activities and
programs
Corporate
culture respecting
the individuals
Solid Management Structure
(corporate governance, internal controls, compliance, risk
management, information disclosure, etc.)
Contributing to
the Sustainable Development of Society
Today, mankind is faced with diverse issues such as global warm-
ing, rapid population growth, and declining birthrate and aging
of the population in the advanced countries. How can we, as a
provider of comprehensive financial services, contribute to resolving
such social issues for the sustainable development of the society.
We believe that it would be our corporate social responsibility to
practice by asking ourselves what we could and should do.
Basic CSR Policies
SMFG has set forth the definition and common principles for “busi-
ness ethics” for CSR in order to clearly describe and effectively
promote CSR activities in the Group.
SMFG’s Definition of CSR
In the conduct of its business activities, SMFG fulfills its social responsibilities
by contributing to the sustainable development of society as a whole through
offering higher added value to (i) customers, (ii) shareholders and the market,
(iii) the environment and society, and (iv) employees.
SMFG’s Group-Wide CSR Philosophy: “Business Ethics”
I. Satisfactory Customer Services
We intend to be a financial services group that has the complete trust and
support of our customers. For this purpose, we will always provide services
that meet the true needs of our customers to assure their satisfaction and
earn confidence in the Group.
II. Sound Management
We intend to be a financial services group that maintains fair, transparent,
and sound management based on the principle of self-responsibility. For
this purpose, along with earning the firm confidence of our shareholders,
our customers, and the general public, we take a long-term view of our
business and operate it efficiently, and actively disclose accurate business
information about the Group. Through these activities, we work to maintain
continued growth based on a sound financial position.
III. Contributing to Social Development
We intend to be a financial services group that contributes to the healthy
development of society. For this purpose, we recognize the importance of
our mission to serve as a crucial part of the public infrastructure and also
our social responsibilities. With such recognition, we undertake business
operations that contribute to the steady development of Japan and the rest
of the world, and endeavor, as a good corporate citizen, to make a positive
contribution to society.
IV. Free and Active Business Environment
We intend to be a financial services group for which all officers and
employees work with pride and commitment. For this purpose, we respect
people and develop employees with extensive professional knowledge and
capabilities, thereby creating a free and active business environment.
V. Compliance
We intend to be a financial services group that always keeps in mind the
importance of compliance. For this purpose, we reflect our awareness
of Business Ethics in our business activities at all times. In addition, we
respond promptly to directives from auditors and inspectors. Through
these actions, we observe all laws and regulations, and uphold moral
standards in our business practices.
48
SMFG 2013
Support for initiatives in Japan and overseas
As a corporate citizen of the global society, SMFG is fully aware of
the social impact of the financial institution, and it shall support the
following initiatives in Japan and overseas (the action guidelines for
the corporate activities and principles).
its own checklist for the group companies to self-assess seven
core concepts. We continue to utilize ISO26000 based on the final
assessment made for fiscal 2012 to further strengthen our CSR
management.
Initiatives supported by SMFG in Japan and overseas
• United Nations Global Compact
Ten principles proposed by the United Nations concerning human rights,
labor, environment and corruption prevention
• UNEP Finance Initiative (UNEP FI)
Organization which pursues, develops and promotes the ideal financial
institutions which pay attention to the environment and sustainability.
• CDP (Carbon Disclosure Project)
Four prioritized issues faced by the Group as a
financial institution
As a comprehensive financial services provider, the Group
proactively promotes and pioneers initiatives for resolving four criti-
cal issues which may substantially affect the society (reconstruction
for earthquake damages, environment, declining birthrate and aging
of population and globalization).
Initiatives which measures, manages and reduces effects of climate changes
(1) Support for Reconstruction for the Great East
by prompting institutional investors and business managers to have
dialogues regarding such climate changes
• Equator Principles
Environmental and social standards which are set forth based on the
International Finance Corporation (IFC) guidelines for project finance projects
• Principles for Financial Action toward a Sustainable Society (Principles
for Financial Action for the 21st Century)
Japan Earthquake
The Group shall consistently address and accommodate major
issues for reconstruction of the areas affected by the earthquake
by partnering with diverse stakeholders such as businesses, local
governments and Non-Profit Organizations.
For details, please refer to page 62 (Supporting the Recovery
Principles of action for financial institutions in Japan for the purpose of
after the Great East Japan Earthquake).
expanding and improving the quality of environmental finance
Integral Implementation of CSR Activities and
Business Strategies
CSR activities are the foundation for SMFG Group’s business strate-
gies as well as the management policies and goals.
We consistently verify and confirm whether the direction of busi-
ness strategies of maximizing the “Spirit of Innovativeness,” “Speed”
and “Solution & Execution,” promoted by the Group, is appropri-
ately reflecting the basic CSR policy in our management policies of
“becoming a globally competitive financial group with the highest
trust of our clients and stakeholders.” Furthermore, we properly
reflect needs of our clients and society in our CSR activities.
Completely and fully achieving CSR is truly the “management
itself,” and we also believe that seriously committing to the imple-
mentation of CSR is thought to be the shortest path for achieving
our management policies and goals.
Strengthening CSR management by utilizing the
ISO26000 standards
The Group manages CSR by regularly having discussions with each
group company led mainly by the “Group CSR Committee.”
At the “CSR Liaison Conference” conducted by CSR depart-
ment of each group company since December 2010, the research
group with respect to the International Standard of “ISO26000”
(issued in November 2010) was established for understanding
the outline. ISO26000 is the “guide,” which consists of the basic
principle and seven core concepts (governance, human rights,
labor practices, the environment, fair operating practices, consumer
issues, and community involvement and development), for social
responsibilities of organizations. In fiscal 2012, the Group created
(2) Environment
The Group shall strengthen diverse initiatives, not limited to achiev-
ing the low-carbon society, but also resolving issues associated with
water, soil contamination, energy, biodiversity, etc.
For details, please refer to pages 55-58 (Environmental
Preservation Initiatives).
(3) Declining birthrate and aging of population
The Group shall contribute to developing initiatives which allow
senior citizens to have comfortable and active lives. In anticipation
that many employees may be involved with raising children and
caring for the elderly, the Group shall also enhance the system and
culture which support employees being able to balance work and
to raise children/caring for elderly. Additionally, we consider raising
issues and awareness in the society.
For details, please refer to page 62 (Measures for Addressing
Decreasing Birth Rate and Aging Population) and page 64 (Creating
a Corporate Culture which Derives Strength from Diversity).
(4) Globalization
In anticipation of further business development in the international
society, the Group is moving forward with globalization in Japan and
overseas. As for CSR, we strive to improve sharing of information
and to enhance cooperation with overseas branches to promote
resolving social issues on global-basis and commonly share diver-
sity in thinking in Japan and overseas.
For details, please refer to page 61 (Contributions Made to
Local Communities by Overseas Offices).
49
SMFG 2013
Initiatives for Enhancing Customer Satisfaction (CS) and Quality
The bank has set up the Quality Management Dept. which
is responsible for developing plans and preparing systems for
improvement of CS and Quality. Additionally, this department
holds meetings for the “CS and Quality Improvement Committee,”
which is chaired by the President, to discuss appropriate cross-
departmental measures for the entire bank in order to achieve
greater satisfaction by customers.
Clients always come first
SMBC sets forth detailed action principles under the “Clients
always come first” of the “Compliance Manual,” along with the
above-mentioned “Management Principles,” in order to enforce
the attitude of “Clients always come first.” Furthermore, the
bank raises awareness for the attitude of “Clients always come
first” for all employees through group training seminars and
study sessions conducted at branches. During such training
seminars and study sessions, the bank specifically incorporates
clients’ opinions and requests for the implementation of “Clients
always come first” attitude into daily business activities.
SMFG strives to improve CS and Quality of the entire Group
and to become the “highly-trusted” financial services group, through
implementation of such measures.
SMFG’s Initiatives
SMFG shall implement measures to improve CS and Quality while
cooperating among group companies by setting forth as one of
our management principles: “To found our own prosperity on pro-
viding valuable services which help our customers to build their
prosperity.”
SMFG regularly holds meetings for the “Group CS Committee”
which is chaired by the senior management executive of the general
affairs section of the Group for promoting cooperation among group
companies. The committee discusses and exchanges opinions and
ideas regarding opinions and suggestions received from our clients
or CS promotion policies, and it strives to further improve CS and
Quality of the entire Group.
Measures Taken by SMBC
The head office of SMBC analyzes opinions and suggestions
received from our clients and proactively incorporates such opinions
and suggestions received from our clients into our management
and training seminars for employees for improvement of products
and services based on such analysis.
Responding to customers’ opinions and requests
The customers’ opinions and requests, which are received at
branches or made through our toll-free telephone service, are
collected and registered into the database for “Voice of the
Customers” (VOC), along with data received from CS surveys and
questionnaires conducted by our bank. The registered data are
widely shared among all departments of the Bank.
Based on such registered data for VOC, there may be cases
in which the head office departments may advise branches, review
individual products and services, or consider measures to be taken
for the entire bank.
■ Measures to improve Customer Satisfaction (CS) and Quality of the Bank
Toll-free telephone service (domestic calls only), CS surveys and questionnaires
Customers
Opinions
Input
Voice of the
Customers (VOC)
Database
Analysis
Guidance at the branch
Branches
and other
offices
Response
Improvement of products and services
Management Principles / Compliance Manual
Training seminars and study sessions
Head office
departments
Reports
CS and
Quality
Improvement
Committee
Quality
Management
Dept.
Directives
50
SMFG 2013
Corporate Governance
Our Position on Corporate Governance
SMFG and its Group companies follow the SMFG manage-
ment philosophy set forth as the universal guide for the Group
management and consider this philosophy as the foundation for
any corporate activities. We believe that the strengthening and
enhancement of corporate governance is one of the top priori-
tized issues in order to achieve the management philosophy.
The SMFG Corporate Governance System
SMFG implements the corporate auditor system, whereby
six corporate auditors are appointed, out of which three are
outside auditors. The said appointed corporate auditors audit
business operations conducted by SMFG directors by attending
important meetings including the Board of Directors meetings
and receiving reports from directors on the business opera-
tions and reviewing material documents for major business
decisions while reading reports on interviews conducted by the
internal audit department, subsidiaries and external accounting
auditors.
As for the Board, the chairman of SMFG serves as the
chairman of the Board of Directors for SMFG. The role of the
chairman is clearly separated from responsibilities of the presi-
dent who oversees the overall business operations.
Furthermore, the establishment of internal governance com-
mittees under the Board and appointment of outside directors
enhance the effectiveness of the Board.
The Board set up
internal committees:
the
four
Auditing Committee, the Risk Management Committee, the
Compensation Committee, and the Nominating Committee. All
three outside directors have been appointed for these commit-
tees in order to objectively oversee corporate governance.
As the objectivity is explicitly required for both Accounting
Committee and Compensation Committee, the outside direc-
tors are appointed to further enhance such required objectivity.
The outside directors, who are expert professionals (certified
public accountants, attorneys, business management con-
sultants), are selected to ensure the execution of the Group’s
business operations in conformity with both legal regulations
and generally accepted practices.
The Group Management Committee is set up under the
Board to serve as the top decision-making body. The Group
Management Committee is chaired by the president of SMFG
and the directors are appointed by the president.
The committee members consider important management
issues based on policies set by the Board of Directors, and
the president has the authority to make the final decision after
considering the committee’s recommendations. The Group
Strategy Committee is set up for matters related to business
plans of each Group company and to exchange opinions, dis-
cuss and report on the management of SMFG and each of the
Group companies. Furthermore, nine directors (out of which
three directors are outside directors) out of twelve directors
(out of which three directors are outside directors) of SMFG
also serve as the directors for SMBC to oversee its business
execution. As for the four major Group companies of Sumitomo
Mitsui Finance and Leasing Company, Limited, SMFG Card &
Credit, Inc., SMBC Consumer Finance Co., Ltd, and The Japan
Research Institute, Limited the SMFG directors also serve as
the directors for each of these subsidiaries to oversee their busi-
ness. Furthermore, in order to maintain the sound management,
SMFG sets forth a system, which firmly maintains the appropri-
ateness of SMFG’s business operations, as the internal control
regulations, pursuant to the Japanese Company Law; and
SMFG considers that the development of a solid management
system is an important management issue by further improving
the internal control system.
The SMBC Corporate Governance System
SMBC implements the corporate auditor system by appointing
six corporate auditors, out of which three corporate auditors are
outside auditors. SMBC implements the executive officer system
by dividing functions of “business execution” and “overseeing
function” in order to increase the transparency and soundness of
management. The executive officers execute business operations
and the Board serves mainly as the overseeing function.
The chairman of the bank also serves as the chairman of
the Board; segregates his functions and duties from the presi-
dent of the bank who controls the overall business operations;
does not concurrently hold the position of executive officer; and
mainly oversees the business execution. Furthermore, SMBC
further strengthens the overseeing function by appointing
three outside directors out of sixteen directors for the bank.
The executive officers, who manage business operations, are
appointed by the Board. There are a total of seventy executive
officers, including the president, as of June 30, 2013 (out of
seventy executive officers, eleven executive officers concurrently
serve as directors).
The Management Committee is set up under the Board
to serve as the highest decision-making body for the bank.
The Management Committee is chaired by the president of the
bank, and the executive officers are appointed by the president.
The committee members consider important management
issues based on policies set by the Board of Directors, and
the president has the authority to make the final decision after
considering the committee’s recommendations.
Furthermore, pursuant to the decisions made by the Board,
the president designates certain members of the Management
Committee to be Authorized Management Committee members
in charge of particular Head Office departments or units. All of
these designated individuals are in charge of implementing the
directives of the Management Committee within the businesses
they oversee.
51
SMFG 2013
Internal Audit System
An Outline of the Group’s Internal Audit System
In addition to the SMFG Auditing Committee, which functions as
a governance committee reporting to the Board of Directors, the
Internal Auditing Committee is set up as part of the Management
Committee, taking into consideration its critical role and
responsibility for the internal audit for the management, in order
to effectively facilitate the internal audits. The Internal Auditing
Committee meets every quarter, and its members discuss on
important internal auditing matters based on reports prepared
by the departments responsible for conducting internal audits.
Under such structure, the Audit Department is set up as the
independently operated internal auditing unit of the Group.
The Audit Department conducts internal audits on the oper-
ations of all of the Group’s units and departments for optimal
management, proper operations of the Group and the sound-
ness of their assets. These audits also have the functions of
verifying whether the Group’s internal control systems, including
compliance and risk management, are appropriately and effec-
tively operated. Additionally the Audit Department is responsible
for the overall supervision of the internal audit systems of the
Group companies, for its appropriateness and effectiveness
by verifying the accumulated internal audit data and monitoring
activities, including inspections and any other activities based
on the actual sample data; and conducting audits as deemed
necessary. Based on these activities, the Audit Department
provides recommendations and guidance to the business units
and departments as well as to the Group companies.
At SMBC, we have established the Internal Audit which is
independently operated from other business activities. Under
the said Internal Audit Unit, the Internal Audit Department and
the Credit Review Department are set up. Similarly for SMFG,
SMBC also sets up an Internal Auditing Committee, which is
responsible for discussing and reporting important matters
proposed by the Internal Audit Unit, as the committee partially
constituting its Management Committee.
The Internal Audit Unit is responsible for auditing compli-
ance and risk management at SMBC (head office departments,
domestic and overseas branches) and SMBC Group compa-
nies. The audit of operations of the head office departments
is conducted by assessing for appropriateness of overall
internal control systems of each department, in perspective of
functionality of procedures for the “Plan, Do, Check and Act”
(PDCA) method. In addition to these individual audits for each
department, we also focus on specific businesses or specified
critical issues associated with risk management to conduct
the “Audit of Targeted Items” for verifying the bank’s overall
or cross-departmental conditions of the internal control sys-
tems. Moreover, audits of branches and offices are not limited
to simply inspecting for any inadequacies but also specifying
and pointing out issues for the overall internal control systems,
including any problem items associated with compliance and
risk management; and making proposals for improvement mea-
sures or corrective actions.
For other Group companies, internal audit departments
have been set up according to the respective business charac-
teristics of such Group companies.
Initiatives to Enhance the Sophistication and
Efficiency of Internal Audit
The Audit Department has adopted methods in accordance
with the standards of the Institute of Internal Auditors (IIA)*, an
international organization. The Audit Department conducts risk-
based audits and the Group companies also conduct the same.
The Audit Department, as the controlling department for
the Group’s overall internal audit systems, strives to enhance
the expertise of internal auditors such as collection of internal
and external up-to-date information related to internal audit and
forwarding such information to the Group companies; imple-
mentation of seminars conducted by outside professionals for
the Group companies; and promoting the acquisition of interna-
tional qualification for internal audit. Also, the Audit Department
organizes training programs taught by outside experts for the
staff of the Group companies, encouraging them to learn inter-
national standards to enhance their professional knowledge and
skills for internal audit.
To further improve the effectiveness of audit, we also proactively
take measures on a group-wide basis to assess the quality of our
internal audit while taking into account the IIA* standards.
* The Institute of Internal Auditors (IIA) was founded in 1941 in the United States as an
organization dedicated to helping raise the level of specialization and professionalism
of internal auditing staff. In addition to conducting theoretical and practical research on
internal auditing, the IIA administers examinations for Certified Internal Auditor (CIA),
which is the internationally recognized qualification in this field.
SMFG
Shareholders’ Meeting
Nominating
Committee
Board of Directors
Risk Management
Compensation
Committee
Committee
Auditing
Committee
Corporate Auditors/
Board of Corporate Auditors
Office of Corporate Auditors
SMBC
Shareholders’ Meeting
Board of Directors
Management Committee
Internal Auditing Committee
Corporate Auditors/
Board of Corporate Auditors
Office of Corporate Auditors
Group Strategy
Committee
Management Committee
Internal Auditing Committee
Business units subject
to auditing
Business units subject to auditing
All Departments
Internal
Audits
Audit
Department
Head Office/Business Units
Internal
Audits
Internal Audit Unit
Internal Audit Department
Credit Review Department
M
o
n
i
t
o
r
i
n
g
Auditing
52
SMFG 2013
Compliance
Compliance Systems at SMFG
Basic Compliance Policies
SMFG strives to further strengthen its compliance systems in
order to be able to fulfill its public mission and corporate social
responsibilities as a financial services group offering diversified
products and services for becoming a truly outstanding global
corporate group.
For compliance policies, SMFG sets forth its “Business
Ethics” (on page 48) as the common CSR principles for the
Group and considers the strengthening of such Business Ethics
as one of the critical issues for the management.
Group Management in Compliance Perspective
As a financial holding company, SMFG strives to maintain a
compliance system which provides the appropriate direc-
tions, guidance and monitoring for compliance for its Group
companies.
Specifically, SMFG manages and monitors the selfsustaining
compliance functions of individual Group companies through
regular meetings attended by all Group companies and meet-
ings with individual companies.
Reporting System for Inappropriate Accounting
and Auditing Activities
SMFG has established the “SMFG Group Alarm Line”, the
whistle-blowing system which can be used by all employees,
including employees of group companies for enhancing self-
control effect by promptly detecting and rectifying any actions
which may violate laws and regulations SMFG has implemented
the “SMFG Accounting and Auditing Hotline” to provide the
means for individuals in and out of the Group to report inap-
propriate accounting and auditing activities. This hotline quickly
identifies and takes appropriate actions against any fraudulent
activities or any misconduct associated with accounting and
auditing at SMFG and its consolidated subsidiaries.
SMFG Accounting and Auditing Hotline: Reports may be submitted by
regular mail or e-mail to the following addresses.
Mailing address:
SMFG Accounting and Auditing Hotline
Iwata Godo Attorneys and Counsellors at Law
10th floor, Marunouchi Building
2-4-1 Marunouchi, Chiyoda-ku, Tokyo 100-6310
E-mail address:
smfghotline@iwatagodo.com
* The hotline accepts any alerts of inappropriate activities concerning
accounting and auditing at SMFG or its consolidated subsidiaries.
* Anonymous reports are also accepted; however, if possible, providing
personal information such as your name and contact information would
be appreciated and helpful.
* Please provide as much detail as possible for such inappropriate activi-
ties. An investigation may not be feasible if adequate information is not
provided.
* Personal information will not be disclosed to any third parties without
your consent, unless such disclosure is required by law.
Corporate Auditors
Audit Dept.
Group Business
Management
Dept.
Audit/Monitoring
Group Company
Sumitomo Mitsui Financial Group, Inc.
Audit
Report
Board of Directors
Management Committee
Directions
Report
Compliance Committee
Audit
Audit/Monitoring
Group Company
General Affairs Dept.
Compliance System
Oversight and
Guidelines
Report
Departments and Offices
General Manager responsible for compliance
Compliance Officers to assist and monitor General Managers
Management Report
Group Companies
SMBC, Sumitomo Mitsui Finance and Leasing, SMBC Nikko Securities, SMBC Friend Securities,
Sumitomo Mitsui Card Cedyna, SMBC Consumer Finance, and JRI
* SMFG Card & Credit, Inc. is an intermediary holding company for Sumitomo Mitsui Card and Cedyna.
53
SMFG 2013
Compliance Systems at SMFG
Strengthening the Compliance System
It is generally required for all corporations to be in compliance
with laws, regulations and other social standards. It is essential
for banks to be fully in compliance to fulfill their public missions
and corporate social responsibilities as financial institutions.
In accordance with the basic policies of SMFG, SMBC
requires its management and staff to give utmost consideration
to people’s trust in the Bank, abide by laws and regulations,
maintain high ethical standards, and act fairly and sincerely.
Therefore, SMBC considers that being fully in compliance is
one of the most critical issues for management to appropriately
deal with the issues related to the Banking Law, the Financial
Instruments and Exchange Act, compliance with any other
related ordinances, and elimination of anti-social organizations.
Compliance System and its Management
The basic structure of SMBC’s compliance system is a dual
structure whereby firstly, each department and office will be
individually responsible for making preliminary decisions
to ensure that its conducts are in compliance with laws and
regulations, and secondly, an independent Internal Audit Unit
will conduct impartial audits of observance of the compliance
system by individual departments and offices.
In order for the basic dual structure to be maintained and
to effectively function, the Compliance Unit, consisting of the
General Affairs Department and the Legal Department will, at
the direction of management, plan and promote systems to
ensure observance of the compliance system. The Compliance
Unit will issue instructions to and monitor the conduct of each
department and office in SMBC, and assist such department
and offices to make appropriate judgments regarding their
observance of the compliance system.
SMBC commits to the following operations for the said
compliance structure to work effectively.
Preparation of a Compliance Manual
SMBC has prepared its Compliance Manual by stating its
objectives, guiding rules and 60 rules of action in order to assist
the management and staff in selecting optimal actions. This
manual has been approved by the Board of Directors.
Development of Compliance Program
The Board of Directors develops the detailed annual plan for
compliance-related activities for each fiscal year, including
amendments to the rules and regulations, training, etc. for the
effective operation of the compliance system for SMBC and
its consolidated subsidiaries. Especially during fiscal 2013,
SMBC proceeds to strengthen overall compliance system to
promptly respond to any environmental changes, such as the
further development of a system for sales of financial instru-
ments; strengthening of measures for anti-money laundering
or financial crimes; strengthening of the system to eliminate
54
any transactions associated with anti-social organizations; and
improvement of overseas compliance system.
Appointment of Compliance Officers
In addition to appointing compliance officers to each branch
and department of the bank, the “Area Compliance Officers”,
who independently operate from areas of business promo-
tion, are appointed for the Middle Market Banking Unit and
Consumer Banking Unit of branches and offices to directly
supervise and manage compliance activities.
Set up of the Compliance Committee
The Compliance Committee, which consists of crossde-
partmental compliance members, chaired by the director in
charge of compliance, has been created in order to compre-
hensively review and discuss compliance related issues. To
enhance fair and objective deliberations by the Compliance
Committee, outside members are also invited to participate
in such Compliance Committee meetings.
For the handling of any complaints received from and conflicts
with our clients, SMBC has executed agreements, respectively,
with the Japanese Bankers Association, a designated dispute
resolution agency under the Banking Act, and the Trust Companies
Association of Japan, a Designated Dispute Resolution
Organization under the Trust Business Act and Act on Provision,
etc. of Trust Business by Financial Institutions and the specified
non-profit organization of “Financial Instruments Mediation
Assistance Center”, one of “Designated Dispute Resolution
Agencies” under the Financial Instruments and Exchange Act.
Japanese Bankers Association:
Contact information: Consultation office,
Japanese Bankers Association
Telephone numbers: (Japan) 0570-017109 or 03-5252-3772
Business hours:
Mondays through Fridays
(except public and bank holidays)
9:00 am to 5:00 pm
Trust Companies Association of Japan:
Contact information: Consultation office, Trust Companies
Association of Japan
Telephone numbers: (Japan) 0120-817335 or 03-3241-7335
Business hours:
Mondays through Fridays
(except public and bank holidays)
9:00 am to 5:15 pm
Financial Instruments Mediation Assistance Center
Contact information: Financial Instruments Mediation
Assistance Center
Telephone numbers: (Japan) 0120-64-5005 or 03-3669-9833
Business hours:
Mondays through Fridays
(except public and bank holidays)
9:00 am to 5:00 pm
SMFG 2013
Environmental Preservation Initiatives
Basic views for environmental preservation
The Group recognizes environmental preservation as one of its most important management issues. Based on our Group Environmental
Policy, we are implementing initiatives to harmonize environmental preservation and corporate activities.
The Group Environmental Policy
Basic concepts
Recognizing the importance of realizing a sustainable society, SMFG is continuously making efforts to harmonize environmental pres-
ervation and pollution control with corporate activities, in order to support the economy and contribute to the betterment of society as
a whole.
Specific environmental policies
• We provide environment-friendly financial products, information and solutions which support our clients in their efforts to preserve
the eco-system.
• We devise means to reduce environmental risks posed by our own activities and the society.
• We are determined to fulfill our social responsibilities through the conservation of resources and energy, and the reduction of waste.
• We strictly comply with environment-related laws and regulations.
• We practice the highest level of information disclosure related to the Group’s environmental activities and consistently improve our
efforts to contribute to environmental preservation by communicating with our staff as well as the third parties.
• We place high priority on thoroughly educating our staff about our environmental principles to ensure that they conform to these prin-
ciples in the performance of their work.
• We actively and effectively implement “environmental management,” and make continuous efforts to improve our system to deal with
environmental issues by setting goals and targets for every fiscal year and reviewing them as deemed necessary.
• These policies are disclosed on the Group’s website, and the printed version is available upon request.
Three pillars of the Group’s activities
The three pillars of our environmental action plan are: 1) “Reduction of impacts on environment,” 2) “Management of environmental
risks,” and “Promotion of environmental businesses.” We have set environmental objectives for each environmental activity and follow
the procedures of Plan, Do, Check, and Act (PDCA) for such environmental activities.
Environmental Management System (EMS) based on ISO14001 certification
The environmental management certification of ISO14001 has been obtained by SMFG and its major companies (SMBC, Sumitomo
Mitsui Finance and Leasing (“SMFL”), SMBC Nikko Securities, SMBC Friend Securities, Sumitomo Mitsui Card and JRI ). In 1998,
SMBC was the first bank in Japan to obtain this certification. The Group has developed the structure to promote EMS which is orga-
nized and managed mainly by the Corporate Planning Department and senior environmental officers.
Signing of the “Principles for Financial Actions
(the principles for financial actions for the 21st
Century) for achieving the sustainable society”
“Principles for Financial Action towards a Sustainable Society”
were adopted in October 2011, by SMBC, SMBC Nikko
Securities, SMBC Friend Securities, Minato Bank, Kansai Urban
Banking Corporation (“KUBC”) and Japan Net Bank.
The principles have been set forth for the purposes of mak-
ing the environmental financing widely-known and improving the
quality of environmental financing. SMBC has participated since
2012 as a steering member for the Steering Committee which is
made up of 187 financial institutions (as of May 31, 2013).
The Group continues to expand its environmental financing
activities in Japan based on these principles.
Environmental Action Plan and PDCA Procedures
The Group Environmental
Policy
Implementation of
environmental initiatives
Reduce environmental
implications
Manage environmental risks
Promote environmental
businesses
SMFG
PLAN
DO
CHECK
ACT
Officer in charge of environmental issues:
Officer responsible for environment management: GM of Group CSR Dept., Corporate Planning Dept.
ISO14001 Secretariat:
Officer in charge of Corporate Planning Dept.
Group CSR Dept., Corporate Planning Dept.
55
SMFG Card & Credit
SMBC
Sumitomo Mitsui Card
SMBC Friend Securities
Japan Research Institute
Sumitomo Mitsui
Finance and Leasing
Corporate Planning Dept.
Corporate Planning Dept.
Corporate Planning Dept.
General Affairs Dept.
Operational Section
SMBC Nikko Securities
Communications Dept.
SMFG 2013
Managing Environmental Risks
• Environmental and social risks in loan (credit) activities
SMBC believes it is important to take into account the envi-
ronmental risks for conducting credit assessment. Factoring
environmental risks in the credit assessment (environmental
credit risks) is stipulated in SMBC’s Credit Policy, which sets
forth the universal and basic philosophies, guidelines and rules
for credit operations taking into consideration the management
principle and the rules of conduct. For example, to deal with the
risks of soil and asbestos contamination in real estate pledged
as collateral, SMBC requires contamination risk assessment
for such real estate collateral meeting certain criteria. If con-
tamination risks are found to be high, the assessed value of the
potential risks will be deducted from its value. Furthermore, our
Credit Policy clearly stipulates that the credit, which is used for
the production of cluster bombs, is prohibited.
• Managing environmental and social risks in large-scale
development projects
Large-scale development projects may have significant impacts
on society and the environment; therefore, the international
civil society requires financial institutions to assess social and
environmental impacts of the projects when providing financial
support. SMBC has adopted
the Equator Principles, a set
of principles for determining,
assessing and managing
social and environmental
risks in project financing and has established the Environment
Analysis Department (EAD) to assess the social and environ-
mental risks of large-scale development projects in accordance
with the principles. The Equator Principles are based on the
social and environmental policies and guidelines of International
Finance Corporation (IFC), the private sector arm of the World
Bank. These policies and guidelines cover variety of issues
such as social and environmental impact assessment process,
pollution prevention and abatement, considerations to local
communities and natural resources.
• Lawful disposal of properties at the expiration of leases
SMFL is completely in compliance with environment-related
laws and regulations to prevent contamination of the environ-
ment due to illegal disposals of industrial waste materials
triggered by the expiration of leases. In addition, multi-phased
assessment mainly in terms of compliance, local research and
interviews are conducted annually in order to prudently select
the most appropriate company which handles transportation
and disposing of waste materials at the time of expiration of
lease.
Reducing Environmental Impact
• Initiatives for Carbon Neutrality
SMFG sets environmental objectives for reducing energy con-
sumption each fiscal year such as electricity, and it assertively
strives to implement energy-saving measures to reach the
targeted goal.
SMBC has made its Head Office “carbon neutral” through
the purchases of “green energies and carbon credits*.” Osaka
head offices of SMFL are also carbon neutral.
In addition, SMBC Friend Securities is proceeding with
converting its corporate vehicles into more environment-friendly
vehicles while making the rest of unconverted vehicles carbon
neutral for the amount equivalent to CO2 emitted.
* In general, the “carbon credits” are also referred to as “emission allow-
ances.” In this annual report, we use “carbon credits.”
• Proactively using clean energies
In December 2011, we
reopened
the SMBC
branches in Shimo-Takaido
(Tokyo) and Konan (Hyogo)
after converting them into
environment-friendly model
branches. The discarded
forest thinning was partially
used for the architectural
design of these building structures of two branches. The
exterior walls were built by utilizing green plants; the roofs were
installed with solar panels and light collecting equipment; and
the interiors were installed with LED lighting and energy-saving
air-conditioning facilities. As for the Konan Branch, we have
installed wind-generated electricity system and mist-shower
equipment, taking advantage of the winds blowing from Rokko
mountain (only available during summer seasons).
Konan Branch
In
fiscal 2012, we
exceeded our initial target
of 30% reduction by reduc-
ing 40% of CO2 emissions.
Taking into consideration
this result, we continue to
proactively install highly
environment-friendly sys-
tems such as LED lightings
at the time of newly establishing offices or renovations. In July
2012, SMFG, SMBC and JRI, as part of their own energy-
saving measures, implemented the solar power generation
equipment in the SMFG’s main computer center in order to
control the energy provided during the peak business hours.
Solar power generation equipment at Group’s
main computer center
SMBC Friend Securities converts its branches to more
environment-friendly interiors such as LED lightings and tiled
carpets made of materials which have carbon credits, at the
time of relocation or renovation.
56
SMFG 2013
Environmental Businesses
• Environmental contributions through core businesses
The Group considers that environmental businesses are means
to preserve and improve the global environment while pursuing
its core business operations as a financial institution. Some of
the examples are: SMBC Environmental Assessment Loan/
Private Placement Bond is provided for clients for promoting
their environmental management. Growth Industry Cluster
Department of Project & Export Finance Department works on
the maintenance or improvement of the global environment
but also the economic development of each country through
providing support for infrastructure improvement projects, such
as the smart community in emerging countries mainly in Asia, or
renewable energy projects.
• Initiatives for Environmental Businesses by Group
Companies
Please refer to the chart shown below for details of the mea-
sures taken for environmental businesses.
Initiatives for Environmental Businesses by Group Companies
Company
SMFG
Program / Product
“SAFE” corporate environmental
magazine
SMFG Environmental Business Forum
SMBC*1 /
JRI*2
SMBC Environmental Assessment Loan/
Private Placement Bond
SMBC Sustainable Building Assessment
Loan/Private Placement Bond
SMBC Sustainability Assessment Loan/
Private Placement Bond
SMBC Environmental Assessment Loan
(Malaysia)
SMBC
SMBC-ECO Loan
Ministry of the Environment and
Ministry of Economy and Trade and
Industry subsidized-interest financing
program
Carbon-credit related business activities
(advisory and consultation services)
Carbon-credit trading
Strengthening alliances with interna-
tional and financial institutions
Environmental campaign program for
JGBs for individuals
DWS New Resource Technology Fund
Participation in the Tokyo Eco Finance
Project
Description
Started in 1996, this bimonthly magazine contains interviews with top management of environmentally advanced companies, analyses of
business trends, and other beneficial information for corporate environmental activities. In March 2013, the 100th issue of the magazine was
published. It can be viewed online at SMFG’s website (in Japanese).
SMFG organized a major three-day event at Eco-Products, one of Japan’s largest environmental exhibitions. Over 1,000 business meetings
were arranged under themes of “new energy” and “environment.” Approximately 40 “global business-matching” were conducted among
Japanese companies and overseas non-Japanese companies of five countries including South Korea, Hong Kong and Singapore.
Terms and conditions for these loans and bonds are set forth according to the assessment conducted on the company’s environmental mea-
sures pursuant to the environmental assessment standards originally created by SMBC and JRI, and SMBC determines terms and conditions for
loans or bonds options according to the results of such assessment.
Terms and conditions for those loans and bonds are set forth according to the assessment conducted on the buildings owned or to be
constructed by companies, pursuant to the assessment criteria created by SMBC and CSR Design & Landscape Co., Ltd., for environment-
friendliness for “energy” and “water,” etc.; seismic adequacy required to maintain the sustainability; and measures taken for “risk management”
of such as BCP.
Terms and conditions for those loans and bonds are set forth by SMBC, according to the assessment conducted on the measures taken by
clients for the Environment, Society and Governance (“ESG”) and appropriateness of information disclosure, pursuant to the assessment criteria
created by SMBC and CSR Design & Landscape Co., Ltd.
Terms and conditions for those loans are set forth according to the assessment conducted on the environmental measures taken by the
company in Malaysia utilizing the scheme as set forth in the “SMBC Environmental Assessment Loan.” The assessment report will be also
provided to further enhance the company’s eco-management related activities.
This loan product offers reductions of interest rates up to 0.25% for SMEs certified with environmental management systems by more than 20
organizations, including NPOs and local governments.
Under this program, companies may conditionally receive loans from financial institutions, with interest subsidized by the government, to
finance capital investment which reduces CO2 emissions. SMBC supports companies taking environmental initiatives as one of the financial
institutions authorized to provide loans under this program.
Through alliances with overseas bases, the bank is involved in a wide range of advisory, financing and other services supporting business and
transactions by our customers wishing to buy carbon credits from sellers in developing countries. In Brazil, SMBC has a consultancy subsidiary
supporting the Clean Development Mechanism project. SMBC’s Brazilian subsidiary has invested in the sustainability fund managed by the
Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social), and it also serves as the environment adviser for the
said fund. It also provides consultation services for the environmental innovation fund which was set up mainly by the Brazilian Development
Bank and other banks.
SMBC was the first Japanese bank to become a carbon-credits trader in June 2009 and began trading carbon credits directly with clients.
In March 2012, SMBC executed a Memorandum of Understanding with Development Bank of Mongolia for financial cooperation for environ-
ment and infrastructure projects which reduce greenhouse gas emissions. SMBC continues to develop the solid global network by MOUs
similarly executed with local financial institutions and economic organizations in Philippines, Brazil and other countries for the promotion of
financing for renewable energy projects and carbon credits trading businesses.
We have contributed to global environmental protection by: (1) trading the amount equivalent to 100kg of carbon credits; and (2) forestation
in the area equivalent to 1m2 per each individual who purchased JGBs. Concurrently, we also have initiatives for supporting the recovery and
reconstruction of areas affected by the Great East Japan Earthquake by obtaining the partial domestic credits generated from northeastern
Japan.
This fund invests mainly in shares of companies around the world with growth potential which conduct businesses associated with three most
discussed issues of (1) local infrastructure; (2) food; and (3) clean energy, in order to accommodate the fluctuating and/or increasing global
demand.
SMBC has been selected as the main financial institution in the Tokyo Eco Finance Project which was implemented in 2009 and in operation
for five years. This project supports individual and corporate clients to accommodate their diverse environmental needs by providing loan, lease,
housing loan, automobile loan and fixed-term deposit by utilizing the deposits accumulated by Tokyo.
57
SMFG 2013 Initiatives for Environmental Businesses by Group Companies
Company
Nikko*3
Program / Product
Nikko Eco Fund
Nikko DWS New Resources Fund
SMBC /
Nikko
SMFL*4
JRI
UBS Climate Change Fund
Nikko World Trust-Nikko Green New
Deal Fund
SMBC Nikko World Bank Bond Fund
Consultation Business for the Amended
Energy Saving Act
Purchase and Sale of Second-Hand
Machinery and Equipment
Support Program conducted by the
Ministry of the Environment
Promotion of CSR and environmental
management
Environmental advisory business
Proposals for energy-related policies
SMCC*5
Cooperation with the Eco-Point program
for housing
SMCC /
Cedyna
Cedyna
SMBCCF*6
Web registration campaign
Issuance of socially contributing
environmental cards
Electronic statement service
Friend*7
Environmental Sustainability Bond
Friend /
Nikko
Minato*8
Electronic statement service
“Minato Eco-Monogatari” Carbon Offset
Time Deposits
Minato ECO Loan/Private Placement
Bond
Minato ECO product purchase loan and
Minato ECO housing loan
KUBC*9
Eco-time deposit
Housing loans for smart homes
Environmental Assessment Loan/Private
Placement Bond
Kansai Urban Environment Support
Loan
Description
SMBC Nikko Securities Inc. was the first firm in Japan to start offering the SRI fund of Nikko Eco Fund taking into account the environmental
perspectives for investments.
This fund invests mainly in shares of companies around the world with growth potential which conduct businesses associated with three
most discussed issues of (1) water; (2) agriculture; and (3) alternate energy, in order to accommodate the fluctuating and/or increasing global
demand.
This fund invests in shares of countries around the world which have innovative technology with respect to preventive measures for global
warming.
This fund invests in shares of companies located in countries where high growth is anticipated through their environmental preservation
activities, focusing on “green new deals” for economic recovery based on measures required for global environment.
In February, 2010, SMBC and SMBC Nikko Securities Inc. started to offer the
Nikko World Bank Bond Fund which is the first fund in the world to invest in green bonds issued by the World Bank (data provided by Nikko
Asset Management Co., Ltd.).
A portion of earnings from the fund is donated to the Japan Committee for UNICEF and the Japanese Red Cross Society to be used to resolve
any social conflicts around the world.
*This fund invests in green bond which is one of the bonds issued by the World Bank
It strengthens its advisory services by appropriately accommodating the Amended Energy Saving Act for proposing comprehensive energy-
saving measures by utilizing the lease.
Real property with expired lease or machinery and equipment purchased from clients are being sold to clients who may need them. It strives to
become the leasing company which is environment-friendly implementing the measures for recycling and reuse by purchasing and selling the
second-hand machinery.
It promotes the implementation of leasing the eco-friendly equipment which meets the criteria set forth by the Ministry of the Environment, by
utilizing the subsidies provided by the Ministry of the Environment for such lease.
JRI supports companies in their CSR and environmental management by assisting them with the development of CSR management strategies
and conducting carbon-credit research and investigation.
It engages in numerous environmental projects mainly in the energy and smart community fields. It strives to contribute to the resolution of
global-warming issues and development of environment-friendly businesses by the creation of new businesses.
The Great East Japan Earthquake led to the substantial review of the Japan’s energy policy. JRI makes recommendations and proposals for
energy systems of next-generation, road map for the realization of separating electric power generation and transmission, measures for energy
of next-generation, and the vision for development of new industry.
SMCC participates in the Eco-Point program for housing promoted by the Ministry of Environment, and also provide Sumitomo Mitsui VISA
Gift Cards as gifts in exchange for eco points accumulated for the eco-points business. We also donate an amount equivalent to 0.1% of the
face value of the Gift Cards to non-profit organizations, for plantation work in deforested areas such as south Kyushu, and other environmental
protection activities.
SMCC is proactively promoting the use of online account statements (breakdown of credits and debits is e-mailed and the details are posted on
its website) for conserving paper and helping to reduce CO2 emissions.
We issue socially contributing environmental credit cards such as “Chikyuni Yasashii Card” and “Cedyna Card AXU,” and the part of payments
for such cards are donated to environmental preservation organizations.
It strives to reduce the consumption of paper resources and CO2 emissions, in addition to increasing convenience for clients by electronically
converting documents especially under the current circumstances that the ratio of contracts made on the internet out of new applications
submitted has the tendency to yearly increase.
SMBC Friend Securities sold the Environmental Sustainability Bonds issued by the European Bank for Reconstruction and Development (EBRD)
in October and November 2012. The funds raised by such bonds are used to support natural energy development, forestry regeneration and
other environmental projects selected by EBRD based on its evaluation standards.
Promoting the usage of online account statements
“Forestry carbon offset usage fee,” a sum equivalent to 0.05% of ¥6 billion (an amount of money to be raised), will be released by Minato
Bank. The money released will be used to maintain the forest environment in Hyogo Prefecture through Hyogo Prefectural Federations of Forest
Owners’ Cooperative Associations.
In certain cases, Minato Bank offers preferential interest rates for loans and preferential underwriting fees for private placement bonds only for
corporations which have obtained the certification for environmental management system.
Minato Bank offers environment-friendly loans especially made for clients who plan to purchase and install new-energy or energy-saving
equipment (solar power generation systems, ECOWILL, ENE-FARM, etc). It additionally offers housing loans with discounted interest rates to
clients who plan to purchase a home installed with such equipment or renovate the home with such equipment; or for those clients who plan to
purchase newly-constructed home which met the certain criteria set forth by Kobe city for residential environment-friendliness.
This fixed-term deposit makes donations to organizations in Osaka or Shiga prefectures, engaged in environmental protection activities, with the
amount equivalent to 0.01% of deposits received from clients.
It is now possible for KUBC to offer the same terms and conditions such as loan term and interest rate for loans for purchasing homes
preinstalled with solar power generation systems or for costs for installation of such systems.
Terms and conditions, and interest rates for those loans and bonds are set forth according to the assessment conducted on the measures taken
by clients for environment-friendliness. The financing method may be selected from either loan or bond.
The predetermined, preferential interest rate for the loan is given to clients who met certain requirements for environment (receipt of certifica-
tion for ISO14001 or Eco Action 21, etc.).
*1 Sumitomo Mitsui Banking Corporation *2 The Japan Research Institute, Limited *3 SMBC Nikko Securities Inc. *4 Sumitomo Mitsui Finance and Leasing Co., Ltd.
*5 Sumitomo Mitsui Card Company, Limited *6 SMBC Consumer Finance Co., Ltd. *7 SMBC Friend Securities Co., Ltd. *8 THE MINATO BANK, LTD. *9 Kansai Urban Banking Corporation
58
SMFG 2013 Social Contribution Activities
Fundamental approach for social contribution activities
SMFG and its Group companies recognize that it is important to consider the public nature of the financial institution and contrib-
ute to the development of society through business operations. In addition to the contribution to society through daily business
operations, we should act as a “responsible corporate citizen” by engaging in activities which may assist in making the better
society in the future. SMFG and its Group companies will pursue diverse social contribution activities in order to fulfill responsibili-
ties as a “responsible corporate citizen.”
Policy for social contribution activities
SMFG and its Group companies fully understand their roles as responsible corporate citizens, and perform social contribution activi-
ties for realizing a prosperous and sustainable society. We continue to plan and execute social contribution activities as the corporate
citizen while supporting volunteer activities of employees, in order to proactively perform social contribution activities.
The backbone for our social contribution activities
SMFG and its Group companies consider the following four areas as the core areas for social contributions activities:
1) social welfare; 2) local and international communities; 3) the environment; and 4) cultures, arts and education.
Social Welfare Activities
• Collection and Donation of Mistakenly-Written Postage-
Prepaid Postcards and Recycling of Other Used Items
SMFG collects mistakenly-written postage-prepaid postcards
from employees of the Group companies, exchanges them
for new postage stamps, and donates the stamps to volun-
teer organizations to help them cover their postage costs. In
addition, SMBC collects unused prepaid telephone cards,
and Sumitomo Mitsui Finance and Leasing (“SMFL”), SMBC
Nikko Securities, Sumitomo Mitsui Card, Cedyna, and SMBC
Consumer Finance and collect PET bottle caps. SMBC Nikko
Securities, SMBC Friend Securities, Sumitomo Mitsui Card, and
SMBC Consumer Finance collect used postage stamps from
employees, donating them to volunteer organizations. SMBC
and SMBC Friend Securities also donate products given by the
companies to their shareholders.
• Group Blood Donation Program
SMBC, SMBC Nikko Securities, Sumitomo Mitsui Card, and
SMBC Consumer Finance encourage employees to donate
their blood at the workplace. The total of 796 employees from
four companies participated in this program in fiscal 2012.
• Installation of Charitable Vending Machines
The head office of SMBC is installed with vending machines for
the program which make contributions to welfare organizations
every time a drink is purchased from these vending machines.
The bank also sells products made by organizations which
assist and support the physically-challenged.
Local and Overseas Communities
• SMBC Volunteer Fund
SMBC has a system for volunteering employees to have ¥100
deducted from their monthly salaries to donate to volunteer orga-
nizations. More than 11,000 employees participate in this program,
as of May 2013. The organizations are selected based on thor-
ough investigations and discussions by the panel of experts and
volunteering employees. In fiscal 2012, donations were made to
34 organizations which are supported by the volunteer employees
and work to resolve issues for economical difficulties in Japan and
overseas.
Overseas
• The establishment of literacy education environment for
women and children in Cambodia; the establishment of
libraries in refugee camps in Thailand; providing support for
schools attended by orphans in Zambia infected with AIDS,
as well as other projects.
Japan
• The operations of counseling program for children who
are victims of abuse, repairing the hospices facilities for
children, medical support for homeless, and support proj-
ects for vision- and hearing-impaired to be able to become
self-sustaining.
Sakura
935 employees of the Group
company,
KCS
(approximately 80% of the
company’s total employees),
have volunteered (as of May
2013) for welfare and environ-
mental contribution activities.
• Opening of Emergency Accounts and Accepting
Donations for Major Disasters
SMBC has set up an account having no transfer charges
through which clients may make donations in the event of major
disasters in Japan and overseas. Concurrently, it encourages
employees of SMBC and the Group to make donations. Since
fiscal 2012, we have been consistently accepting donations for
damages caused by the rainstorm in Kita-Kyushu, typhoons in
Philippines, and for the damages caused by Great East Japan
Earthquake. We also accepted donations from SMBC and
SMBC Nikko Securities for the damages caused by the hur-
ricane, ”Sandy” in U.S.
•SMBC Pro Bono Project
The bank is also engaged in pro bono activities in which
volunteers offer their business and professional expertise and
skills for the public. The bank set up the new “SMBC Pro Bono
59
SMFG 2013 Project” in fiscal 2012 by taking advantage of characteristics of
financial institutions. The Pro Bono Team, made up of volunteer
employees, supported three NPOs, which support child-raising
process in Tokyo, by giving advices to strengthen the NPOs’
business infrastructure such as organization and improvement
of necessary bookkeeping and administrative procedures for
handling donations and expenses, and information and data
management of contributors. Since fiscal 2011, the bank has
supported nonprofit organizations dedicated to revitalizing
the economy of the Kansai region and resolving social issues
through employees offering their time for pro bono activities. In
fiscal 2012, the team of volunteer employees supported three
NPOs through participation and sponsorship.
• Activities of YUI, SMBC’s Volunteer Organization
SMBC also provides support through the volunteer activities
of YUI, an in-house volunteer organization which provides
opportunities for SMBC employees to plan and perform volun-
teer activities. YUI regularly performs volunteer activities in the
community, including social events at schools for the hearing
impaired, beach cleaning, and the singing performances for
senior citizens.
•Contributing to Local Communities
SMBC has been promoting and performing volunteer activities
planned by its branches and other offices in Japan to contribute
to local communities. These activities include branch tours,
clean-ups of the local environment of such as parks and other
areas in the vicinity of SMBC branches, and participation in
local festivals and events. Similarly, SMBC Nikko Securities is
proactively involved in local clean-ups and volunteer activities.
•Development of “Customer Service Plaza”
SMBC Consumer Finance Co., Ltd. conducts business activi-
ties which appropriately respond to the needs of society and
clients in the local community, while serving as the center for
communication for the local community. It strives to sustain-
ably develop with the society, through providing household
budget counseling and financial education for local residents
and students, or having proactive measures to vitalize the local
community.
•Donation Boxes for Foreign Currency Coins
SMBC cooperates in fundraising activities by UNICEF. As a
member of the UNICEF foreign currency coin donation com-
mittee, it installs donation boxes for foreign currency coins at
the entrances of all manned branches and offices in Japan,
encouraging clients to donate, and it sorts such collected coins
by each currency for delivery to UNICEF.
• Support through Products and Services
SMBC offers clients an ordinary deposit account of which the
accrued interest (after tax) is donated to the UNICEF Donation
Account, and SMBC also matches the donations to the amount
donated by its clients. Sumitomo Mitsui Card collects dona-
tions from cardholders through the World Gifts Point Service of
VJA group companies, and it also provides matching donations
to UNICEF, Japan Red Cross Society, UNESCO, the World
Wildlife Fund Japan and the World Food Program, in addition
to donations given directly to UNICEF by the company. It also
accepts online credit card donations and credit card payments
60
of other social contributions and donates a portion of credit
card payments made by clients to charitable organizations.
Cedyna contributes to the Japan National Council of Protective
Care Homes for Children and other organizations by issuing
social contribution credit cards such as the ATOM Card, which
supports “Realizing children’s dreams.” It also collects dona-
tions from cardholders using “points” accumulated from their
purchases, and also accepts online donations.
• Participation in the “TABLE FOR TWO” Program
The head offices of SMBC, SMFL, and Sumitomo Mitsui Card
participate in the program which provides donations to the
non-profit organization of the “TABLE FOR TWO International”
to fund school meals in developing countries, for every low-
calorie meal ordered for lunch. In fiscal 2012, SMBC improved
the structure which enables all SMBC branches to participate
in this program. SMBC, SMFL, SMBC Nikko Securities, SMBC
Friend Securities, and Sumitomo Mitsui Card have also installed
vending machines which sell drinks donating part of their sales
to TABLE FOR TWO International.
• Social Contribution Activities of In-House Foundations
SMBC Global Foundation, based in the United States, has
provided scholarships to more than 6,000 university students
in Asian countries since its establishment in 1994. In the United
States, it supports educational trips to Japan organized by a
high school located in Harlem, New York City, and the participa-
tion in school beautification programs by volunteers from SMBC
and Japan Research Institute (JRI). The foundation also pro-
vides matching gifts for SMBC employees. SMBC Foundation
for International Cooperation, which was established in 1990,
strives to assist in developing human resources required to
achieve sustainable growth in developing economies as well as
to promote international exchange activities. Since its establish-
ment, the foundation has provided financial support for 7-8 stu-
dents from Asian countries every year, enabling them to attend
universities in Japan. The foundation also offers subsidies to
research institutes and researchers undertaking projects which
results to economic development of underdeveloped countries.
Environmental Activities
their
• Participation in Environmental Preservation Initiatives
SMFG organizes “SMFG Clean-Up Day” on which Group
employees volunteer to clean up beaches. In fiscal 2012,
approximately 350 employees
and
family members
participated in this activity in
Arakawa in Tokyo and Suma
Beach in Hyogo. The Minato
Bank independently organized
the beach-cleaning activities at
Suma Beach with 58 people
participation; staff of Kansai Urban Banking Corporation partici-
pated in the clean-up activities along the shore of Lake Biwa in
Shiga Prefecture. JRI participated in the Osaka Marathon clean-
up program, concurrently conducted with the Osaka Marathon.
Since autumn of 2010, SMBC Nikko Securities has designated a
“Green Week” for enhancement of environmental protection and
social contribution activities. In fiscal 2012, 7,265 employees
and their family members in total participated in the clean-up
SMFG 2013 and collection of PET bottle caps. Sumitomo Mitsui Finance and
Leasing, Cedyna and SMBC Consumer Finance continuously
conduct the clean-up activities in the vicinity of their offices.
• SMBC Environmental Program NPO C.C.C Furano Field
SMBC also provides support to the environmental project
in Furano in Hokkaido implemented by screenwriter Soh
Kuramoto. SMBC is providing support for forestation in the
closed-down golf course in Furano. It also supports environ-
mental education programs under which children explore nature
by using their five senses.
• Support for the EARTH PHOTO CONTEST
SMFL supports a photography contest for communicating the
importance of resolving environmental problems and encouraging
people to take action. The company presents the Sumitomo Mitsui
Finance and Leasing Prize for outstanding photographic entries.
• Support for Junior Eco Clubs’ All-Japan Festival
SMBC supported the 2012 Junior Eco Club’s All-Japan Festival,
organized by Japan Environment Association, by providing an
information booth at the event.
Contributing to Cultural, Artistic, and
Educational Activities
•SMBC Charity Concert
Since 2006, SMBC has been holding musical concerts for
charity performed by volunteer employees to support under-
privileged children worldwide, where our clients are invited for
free of charge. The donations are collected from the audiences
of concerts and also from the sales of employees’ handcrafted
products. In fiscal 2013, donations were sent to children affected
by the Great East Japan Earthquake and to children in Cambodia
and Vietnam. In addition, people taking refuge in Tokyo from the
earthquake were also invited to the concerts.
• Musical Concerts Held in the Reception Lobbies of
Branches
At the SMBC Tokyo Head Office, Osaka Head Office, KUBC’s
Head Office and Biwako Main Office, lobby concerts are held
for the general public with free of charge.
•Support for Cultural and Artistic Ventures
SMBC Friend Securities supports cultural and artistic activities
by sponsoring special art exhibitions at the Yamatane Museum
of Art. For supporting Kabuki and other traditional performing
arts in Japan, Sumitomo Mitsui Card donates stage curtains to
the National Theatre and the National Engei Hall. The company
also supports the development of classical arts and talented
performers by co-sponsoring children’s Kabuki performances.
SMBC, SMBC Nikko Securities and Cedyna support the pro-
motion of music culture by sponsoring classical music concerts.
•Financial and Economic Education
SMBC and SMBC Nikko Securities organize vocational work-
shops for elementary school students to experience working
in the financial industry. In addition to inviting students of
elementary school up to high school to visit the office as well as
having a special tour program of “Natsuyasumi Kodomo Ginko
Tankentai” participated by elementary school students, the bank
supports diverse financial and economic educational activities,
including publishing a book titled “What Does a Bank Do?,”
providing financial, educational games on the SMBC website, co-
sponsoring Kidzania (a vocational experience theme park for chil-
dren), and supporting Shinagawa Financial Park (economic train-
ing programs for junior high school students). SMBC Consumer
Finance organized the event of card games for elementary school
students to teach the origin and the functions of money and
offered lectures on finance for students and adults, primarily at
its “Customer Service Plaza” offices. A total of 2,137 of such
events were organized in fiscal 2012. Kansai Urban Banking
Corporation organizes a tour for elementary school students, and
also offers a work experience program. SMBC, SMFL, SMBC
Nikko Securities, Sumitomo Mitsui Card, JRI, and Minato Bank
also sent instructors to teach classes at universities.
Contributions Made to Local Communities by Overseas Offices
Overseas offices of the Group support projects which contribute to resolving poverty in developing countries, supporting education and
medical services, and supporting women for advancement or achieving equal treatment, through contributions made to non-profit and
non-governmental organizations, including SMBC’s Volunteer Fund, in addition to independent initiatives tailored to specific issues and
cultures of individual countries and regions.
• SMBC (China) established a scholarship program for students of Zhejiang University, Sun Yat-sen University, Soochow University, East China Normal University, Shanghai
International Studies University and Tianjin Foreign Studies University.
• SMBC (China) conducted forestation activities in Shanghai, Beijing, Suzhou, Tianjin and Guangzhou.
• SMBC’s Hong Kong Branch gave donations to support an orchestra made up of young Asian musicians.
• SMBC’s Seoul Branch gave donations to the “National Japanese Drama Competition for Students” to provide opportunities for Korean students to learn Japanese and further
understand Japanese cultures.
• SMBC’s Hanoi Branch provided international school students with vocational experiences.
• SMBC’s Sydney Branch participated in volunteer and donation activities associated with children, intractable diseases, refugees and earthquake disasters, provided by its CSR
committee.
• Manufacturers Bank employees participate in events which raise awareness for the prevention of heart disease and make donations to event-sponsoring groups.
• Employees of Sumitomo Mitsui Banking Corporation Europe (SMBCE) conducted volunteer activities in their spare time. SMBCE contributes to charitable organizations through
an in-house fund, and also uses a matching-gift program under which it donates a certain amount for every donation made by its employees.
• SMBCE provided opportunities for students to gain work experience and business skills and also provided opportunities for underprivileged young people to participate in the
student work experience program.
61
SMFG 2013 Measures for Addressing Decreasing Birth Rate
and Aging Population
• Implementation of Universal Design and Universal
Service at branches
The following initiatives were undertaken to assist clients at
branches of SMBC, Minato Bank and KUBC. SMBC has
completed in March 2013 the complete conversion of all ATMs
in domestic branches and ATMs located outside of SMBC
branches to the ones which can respond to vision- and hearing-
impaired clients.
• Installation of ATMs for the visually-impaired
• Installation of communication boards and similar devices
for writing messages for those clients having difficulties
hearing
• Installation of Automated External Defibrillators (AEDs)*
• Installation of hearing aids at branches (SMBC and Minato
Bank)
• Installation of walking-stick holding brackets (SMBC and
Minato Bank)
• Establishment of priority seating for senior citizens and
mobility-impaired people (Minato Bank)
* AEDs are also installed at SMBC Nikko Securities and SMBC Friend
Securities
Additionally, staffs, trained in the knowledge and the means
to support senior citizens and physically-challenged clients, are
allocated to all branches of SMBC and Minato Bank.
• Business development for accommodating the soci-
ety with extremely large number of senior citizens
SMBC has clarified guidelines for collateral management and
other matters to support building of rental housing for senior
citizens, demand for which is expected to increase hereafter. In
May 2013, we started to offer loans (loans affiliated with nursing-
care facilities) especially made for real estate properties of pay
nursing homes or serviced elderly homes.
We plan to assist and support in developing the system for
senior citizens to have safe and meaningful lives by adapting to
the needs of the society.
• Stakeholders dialogue on the subject of “Japan’s
declining birth rate”
In January 2013, SMBC discussed the issues and countermea-
sures regarding this concept. The internal system needs to be
improved and it is critical to make some kind of approach to the
greater society, taking into consideration the opinions received
from intellectual and influential individuals.
Supporting the Recovery after the Great East
Japan Earthquake
• Volunteer Activities for the areas affected by the
Great East Japan Earthquake
In April 2011, SMBC established the “special leave of absence
for disaster relief volunteer activities,” and it began allowing
executives and staff to regularly go to the disaster affected areas
for volunteering activities in May that year. Volunteer activities are
still ongoing at Ishinomaki, Watari-cho and Higashi-Matsushima
in Miyagi Prefecture. Approximately 280 staff participated in
total during fiscal years of 2011 and 2012. In August 2012,
62
approximately 30 families or 90 people in total participated in the
programs.
SMBC Nikko Securities
implemented the volunteer
vacation system in April 2011,
and in July 2011, 350 newly-
hired employees and attending
staff participated in the volun-
teer activities in the disaster-hit
areas.
• Support for the Affected Areas by staff of “Customer
Service Plaza”
SMBC Consumer Finance made good use of the “Service
Plaza” (“SP”) to serve clients in the affected areas. SP con-
ducted seminars, at the public conference rooms temporarily
constructed for the people living in the vicinity, on the subject
of “financial awareness to avoid fraudulent activities.” At 18 SP
locations nationwide, the meeting room is provided to support
the disaster-hit areas.
• Donation Activities by Redeeming Points Accumulated
from Using Credit Cards
Sumitomo Mitsui Card and Cedyna accepted donations from
clients using their credit cards, and also donated to the disaster
affected areas by redeeming the points accumulated by clients
from using credit cards.
• Support Fund for Great East Japan Earthquake
SMBC established the system of “Great East Japan Earthquake
Support Fund” for making donations to the disaster affected
areas by deducting ¥400 from employee’s monthly salaries. In
fiscal 2012, we made donations collected from our employees
and the matching donations made by the bank to volunteer
centers and NPO foundations in the disaster-hit areas, in addi-
tion to the volunteer activities conducted by executives and
staff.
• Donation for Disaster Affected Area
Sumitomo Mitsui Card donated 15 music instruments they have
been using within their company club to “Swing Dolphins,”
a jazz orchestra group formed by junior high and elementary
school students of Kesennuma-city, Miyagi.
• Volunteering for interaction with evacuees in Tokyo
The interaction meetings for the people evacuated to Tokyo
from disaster affected areas have been regularly held, par-
ticipated by volunteering employees of SMBC in addition to the
staff of the YUI volunteer organization.
•“Charity Film-Screeing” events
Kansai Urban Banking Corporation held a charity film-
screeing event as part of its support for the disaster-hit areas.
Contributions collected from participants for the film-screening
event and the matching contributions made by the bank were
donated to Fukushima, Iwate and Miyagi prefectures.
SMFG 2013
Human Resources
SMFG and its Group companies strive to create the kind of
work environment in which every employee feels proud and is
able to develop his or her full potential and capabilities. In the
following pages, we describe some of the activities initiated by
SMBC and other Group companies, including Sumitomo Mitsui
Finance and Leasing (“SMFL”), SMBC Nikko Securities, SMBC
Friend Securities, Sumitomo Mitsui Card, Cedyna, SMBC
Consumer Finance, the Japan Research Institute (“JRI”), The
Minato Bank, and Kansai Urban Banking.
Five Goals of SMBC’s Human Resources
Development
1. To develop professional and specialized employees who can
provide our clients with highly valued products and services.
2. To maintain and strengthen our sound business manage-
ment enabling SMBC to globally compete in the market.
3. To cultivate the kind of corporate culture which encourages
values of forward-looking, creative attitudes and mutual
cooperation.
4. To be conscious of the social responsibilities of the Group,
and cultivate the kind of corporate culture that contributes to
the sound development of society.
5. To encourage employees to respect their individuality based
on an understanding of diversity, and personal fulfillment.
Training Employees with Specialized
Professional Skills
• Education and Training System
In order to motivate and encourage younger employees and to
promote their personal development, the bank provides employ-
ees with training program consisting of basic practical training,
the Retail Banking College, and the Corporate Banking College.
Our employees may acquire the required business knowledge
and skills through on-the-job (OJT) training and seminars. The
bank creates more practical training programs by assigning
mentors and training instructors to newly hired employees and
regional head office departments, respectively (OJT training is
supported by the head office). SMFL has established “SMFL
Standards,” which annually set forth the human resources devel-
opment plan for sogoshoku (management-track) employees of
not more than five years with the company.
SMFL has created the “Young Employees’ Growth Plan &
Guide,” based on the SMFL Standards, and it has also estab-
lished an in-house business school which supplements OJT
training. SMBC Nikko Securities, as a comprehensive securi-
ties and investment banking firm, is further strengthening its
educational programs to develop employees with expert
knowledge and to improve their professional skills by provid-
ing its newly-hired employees with OJT personally assisted by
instructors, follow-up seminars and other programs such as the
“new employee instructor program.” SMBC Friend Securities
has started to offer its accredited in-house classes for our
young employees to acquire business skills to enhance their
knowledge and improve their skills, in order for the company to
respond appropriately to the continuously advancing sophis-
tication and diversification of the securities business. Under a
new business promoting system introduced in May 2012, we
are strengthening the training of subordinates by section chiefs
and the management functions, to make OJT more effective
for newly-hired employees. Following the amendments to
the Money Lending Business Act, Sumitomo Mitsui Card has
enhanced the development of professional expert employees
in the credit business. We have taken measures to proactively
support our employees in becoming licensed money lending
officers by regularly holding in-house seminars and educating
them in product knowledge and related subjects. Cedyna strives
to promote high professional standards and encourage the set-
ting of challenging goals. Younger employees are encouraged
to work in various departments to learn and gain business skills
and diverse work experience. They strengthen their professional
skills by taking programs at different levels for each type of busi-
ness and with specific objectives. SMBC Consumer Finance is
implementing the competency-development training based on
its personnel system for training human resources to have high
social values and responsibilities. Furthermore, we help employ-
ees grow and advance by promoting education that teaches
those subject matters required to be in full compliance with
the Money Lending Business Act and other legislation. SMBC
Consumer Finance has been supporting the development of
employees. JRI believes that its human resources provide added
value, which is translated into solutions and proposals. With that
in mind, it has established the Human Resources Development
Department in the Systems Development Division, and the
Human Incubation Center in the Research & Consulting Division
for the well-planned development of human resources. Minato
Bank has consistently implemented the Minato Retail-business
College (“MRC”) system which improves the quality of consul-
tation services offered to its individual clients. Kansai Urban
Banking has a basic training program designed for staff in their
first six years of employment with the bank, made for developing
energetic employees. Another training system is Kansai Urban
Business School, created to teach basic banking expertise and
foster employee self-awareness. The bank is also creating locally
based exams as a measure to become a bank which puts more
emphasis on the local area and which prospers with the local
community. We are further strengthening the training systems in
respective Group companies.
Training Seminar at Kansai Urban Banking
Employees’ Training Seminar at SMBC
Nikko Securities
63
SMFG 2013
•SMFG Joint Training Program
As Team SMFG, eight major group companies (SMBC, SMFL,
SMBC Nikko Securities, SMBC Friend Securities, Sumitomo
Mitsui Card, Cedyna, SMBC Consumer Finance, and JRI) jointly
conducted training seminars for newly-hired employees of those
group companies to be able to understand the SMFG’s vision
and management policy and to increase the sense of identity as
“Team SMFG.”
Creating a Corporate Culture which Derives
Strength from Diversity
•Human Resources Diversity
The Group is implementing its initiatives to create workplace
diversity (e.g. gender, nationality). In April 2008, the Diversity and
Inclusion Department was established in the Human Resources
Department, and other initiatives were implemented for creating
the kind of corporate culture which derives its strength from
diversity.
•Personnel System
In order to motivate employees to take more challenges in
performing difficult tasks for promotion, SMBC has introduced
a new workplace hierarchy system in which job rankings are
more finely subdivided. This system will make it possible for
talented individuals to be quickly promoted to mid-management
levels. In order to enhance a sense of unity as “Team SMBC”
and to achieve a proactive and energetic bank, our employees’
performances are evaluated not simply in terms of one fiscal
year’s achievements but also on their overall contributions to the
company.
•Developing Employees for Global Operations
In order to respond to the rapid globalization of society
and businesses, SMBC is striving to develop global human
resources with practical language skills and an international
business sense even doing business in Japan. In order to
enhance the overseas market presence and become more inter-
nationalized, the bank is increasing the number of employees
with overseas experience. In addition to the language class,
employment of those with overseas study experiences and of
foreign nationals, the bank encouraged training and appoint-
ment of highly capable national staff, and further expansion
of global personnel changes. At SMFL, overseas training pro-
grams were expanded mainly for young employees in order to
strengthen the training of global personnel, in addition to send-
ing employees to language schools.
•Employing Persons with Disabilities
SMBC has established a special company called SMBC Green
Service Co., Ltd. which provides employment opportunities for
the physically-challenged. In December 2008, the company
began the operations of its Kobe Branch, followed by its
Unagidani Office in Osaka,
February 2009 and Chiba
Office, March 2013. They
created jobs not only for
the physically-challenged
but also for the mentally-
challenged. As of March
2012, physically-challenged
employees accounted for
2.03% of our total number of employees, more than the legally
mandated level of 1.8% (it was modified to 2.0% as of April 1,
2013).
SMBC Global Corporate Banker Training
•Providing Support for a Better Work-Life Balance
The Group has an employee support program which provides
assistance and support for maintaining a proper work-life bal-
ance. In fiscal 2008, SMFL, SMBC Friend Securities, Sumitomo
Mitsui Card, and JRI, developed their “Work-Life Balance
Guidebook,” based on actual experiences at SMBC. All Group
companies have already implemented the programs of parental
leave, leave for taking care of ill children, and shorter working
hours. Such programs provide better employee benefits than
those mandated by law. In addition, SMBC, Sumitomo Mitsui
Card, JRI and Minato Bank provide child-care allowances,
while SMBC, SMFL, Sumitomo Mitsui Card, Cedyna, SMBC
Consumer Finance, Minato Bank and Kansai Urban Banking
have implemented a program for rehiring former employees.
These programs assist the Group’s employees in realizing a
good work-life balance. There are also four workplace-visiting
plans for employees’ children and other family members to give
them an opportunity to better understand what their parents
do for work. The program is available at SMBC, SMFL, SMBC
Friend Securities, Sumitomo Mitsui Card, SMBC Consumer
Finance, and JRI. SMFL and Cedyna encourage their employ-
ees to take their summer vacations and to reduce their overtime
hours, while SMBC conducts the “Go Home Early - Family
Day.” Further, SMBC organizes “Working Mother’s Meeting” and
JRI also organizes “Mama & Papa Lunches,” where employ-
ees exchange information on raising children. SMBC Nikko
Securities and SMBC Consumer Finance have introduced an
online support program for employees returning to work after
parental leave. SMBC, SMBC Consumer Finance, Minato Bank,
and Kansai Urban Banking regularly provide training seminars
for employees on maternity leave. SMBC and Kansai Urban
Banking provide training for employees taking maternity leave.
The above programs aim to support employees to settle in at
work after maternity leave.
SMBC, SMBC Nikko Securities, Sumitomo Mitsui Card,
Cedyna, SMBC Consumer Finance, JRI and Minato Bank have
all obtained “Kurumin certification” issued by the Japanese
Ministry of Health, Labour and Welfare, for programs in com-
pliance with the Law to Promote Measures to Support the
64
SMFG 2013
Development of the Next
Generation.
Children’s Visitation Day
SMBC Consumer Finance recovery support
seminar
Enhancing Awareness of Individual Rights
SMBC has implemented in its corporate principles of action
concepts which state that “we will respect the individual human
dignity of our clients and employees” and “we will not allow
Employees
◆ SMBC
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
Male
Female
2011
2012
2013
25,073
13,546
54.03%
11,527
45.97%
36 yrs 5 mos.
40 yrs 3 mos.
31 yrs 11 mos.
13 yrs 5 mos.
16 yrs 9 mos.
9 yrs 7 mos.
24,602
13,274
53.95%
11,328
46.05%
36 yrs 9 mos.
40 yrs 4 mos.
32 yrs 8 mos.
13 yrs 9 mos.
16 yrs 8 mos.
10 yrs 3 mos.
24,212
13,014
53.75%
11,198
46.25%
37 yrs 0 mos.
40 yrs 3 mos.
33 yrs 3 mos.
14 yrs 0 mos.
16 yrs 8 mos.
10 yrs 11 mos.
Number of women in
managerial positions**
Ratio of employees with
disabilities (% of total)***
*
327
398
447
*
1.95%
1.99%
2.03%
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employees is deducted from
the total number of employees: executive officers, employees on short-term
contracts, part-time employees, employees of temporary employment agencies,
and national staff at overseas branches.
** As of each March 31
*** As of March 1 of the respective years
2012
2011
April 1
Number of new hires
Number of newly employed female
graduates****
Ratio of newly employed females to
total new employees
**** Includes sogoshoku staff, sogoshoku (retail course) staff and consumer service
32.9%
37.1%
32.6%
2013
572
188
610
245
661
199
staff. Business Career Path employees are excluded.
Fiscal
Number of employees taking
parental leave
Number of career hires
2010
2011
2012
476
<26>
6
683
<27>
11
920
<55>
17
any discrimination.” Training seminars and study sessions
on human rights issues and discrimination are organized for
general managers of branches and departments, employees
newly-appointed to management positions, and newly hired
employees. The promotional campaigns for creating the
corporate statement of promoting individual human rights are
also organized to motivate our employees to reflect on indi-
vidual human rights and to come up with the statement for such
campaign. Kansai Urban Banking is implementing measures
to further enhance awareness of individual human rights by
organizing human rights awareness study sessions for each
regional group and inviting employees to reflect and come up
with an individual human rights statement. SMFG and its Group
companies participate in the “United Nations Global Compact,”
and also endorse and support its 10 principles in the areas of
human rights, labor standards, environment and anti-corruption
measures.
◆ Sumitomo Mitsui Finance and Leasing
2012
March 31
Number of employees*
2011
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
1,648
1,025
62.20%
623
37.80%
37 yrs 8 mos.
40 yrs 6 mos.
33 yrs 0 mos.
12 yrs 10 mos.
15 yrs 6 mos.
8 yrs 7 mos.
1,618
1,007
62.24%
611
37.76%
38 yrs 2 mos.
40 yrs 10 mos.
33 yrs 10 mos.
13 yrs 4 mos.
15 yrs 9 mos.
9 yrs 5 mos.
2013
1,620
1,017
62.78%
603
37.22%
38 yrs 11 mos.
41 yrs 5 mos.
34 yrs 9 mos.
14 yrs 0 mos.
16 yrs 3 mos.
10 yrs 2 mos.
Male
Female
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employees is deducted from
the total number of employees: employees seconded from other companies
and organizations, executive officers, employees on short-term contracts, part-
time employees, employees of temporary employment agencies, and full-time
employees of affiliates (including overseas subsidiaries).
April 1
Number of new hires
Number of newly employed female
graduates
Ratio of newly employed females to
total new employees
2011
2012
2013
22
3
19
3
20
4
13.6%
15.8%
20.0%
Fiscal
Number of employees taking
parental leave
2010
2011
2012
34
<0>
39
<0>
40
<0>
65
SMFG 2013 ◆ SMBC Nikko Securities
March*
Number of employees**
2011
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
7,094
4,449
62.71%
2,645
37.29%
38 yrs 11 mos.
40 yrs 3 mos.
36 yrs 8 mos.
11 yrs 11 mos.
12 yrs 4 mos.
11 yrs 2 mos.
2012
2013
7,513
4,771
63.50%
2,742
36.50%
38 yrs 11 mos.
40 yrs 2 mos.
36 yrs 10 mos.
11 yrs 10 mos.
12 yrs 2 mos.
11 yrs 4 mos.
7,656
4,863
63.52%
2,793
36.48%
39 yrs 3 mos.
40 yrs 4 mos.
37 yrs 3 mos.
12 yrs 3 mos.
12 yrs 6 mos.
11 yrs 10 mos.
◆ Sumitomo Mitsui Card
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
2011
2012
2013
2,300
1,146
49.83%
1,154
50.17%
36 yrs 8 mos.
40 yrs 0 mos.
33 yrs 5 mos.
11 yrs 0 mos.
12 yrs 0 mos.
10 yrs 0 mos.
2,323
1,141
49.12%
1,182
50.88%
37 yrs 1 mos.
40 yrs 4 mos.
34 yrs 0 mos.
11 yrs 7 mos.
12 yrs 8 mos.
10 yrs 7 mos.
2,353
1,157
49.17%
1,196
50.83%
37 yrs 7 mos.
40 yrs 6 mos.
34 yrs 8 mos.
12 yrs 2 mos.
13 yrs 1 mos.
11 yrs 4 mos.
Male
Female
As of March 1 of the respective years
*
** The number of full-time employees. The following list of employees is deducted
from the total number of employees: executive officers, part-time employees,
employees of temporary employment agencies, and national staff at overseas
branches.
*
Male
Female
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employees is deducted from
the total number of employees: executive officers, employees on short-term
contracts, part-time employees, employees of temporary employment agencies,
and national staff at overseas branches.
2011
April 1
Number of new hires***
Number of newly employed female
graduates
Ratio of newly employed females to
total new employees
*** Professional staff (Classes I-II), FA, and specialists
38.5%
190
493
2012
2013
388
165
293
111
42.5%
37.9%
April 1
Number of new hires
Number of newly employed female
graduates
Ratio of newly employed females to
total new employees
2011
2012
2013
72
43
49
24
55
29
59.7%
49.0%
52.7%
Fiscal
Number of employees taking
parental leave
2010
2011
2012
229
<0>
248
<1>
262
<0>
Fiscal
Number of employees taking
parental leave
2010
2011
2012
43
<2>
59
<6>
63
<5>
2012
2013
2011
2012
2013
◆ SMBC Friend Securities
March 31
Number of employees*
2011
Average age
Male
Female
Male
Female
Percentage of total
Percentage of total
1,897
1,359
71.64%
538
28.36%
37 yrs 7 mos.
39 yrs 8 mos.
32 yrs 5 mos.
14 yrs 0 mos.
15 yrs 9 mos.
9 yrs 5 mos.
1,846
1,336
72.37%
510
27.63%
38 yrs 4 mos.
40 yrs 4 mos.
33 yrs 1 mos.
14 yrs 9 mos.
16 yrs 6 mos.
10 yrs 2 mos.
1,814
1,309
72.16%
505
27.84%
38 yrs 11 mos.
40 yrs 11 mos.
33 yrs 9 mos.
15 yrs 3 mos.
Male
17 yrs 1 mos.
Female
10 yrs 8 mos.
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employees is deducted from
the total number of employees: executive officers, employees on short-term
contracts, part-time employees, employees of temporary employment agencies,
and national staff at overseas branches.
Average years of service
*
2011
April 1
Number of new hires
Number of newly employed female
graduates**
Ratio of newly employed females to
total new employees
** Both non-area specified and area specified staff
53.0%
149
79
2012
2013
151
74
159
74
49.0%
46.5%
Fiscal
Number of employees taking
parental leave
2010
2011
2012
25
<0>
25
<5>
25
<0>
66
◆ Cedyna
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
3,340
2,021
60.51%
1,319
39.49%
38 yrs 7 mos.
41 yrs 5 mos.
34 yrs 4 mos.
14 yrs 2 mos.
16 yrs 4 mos.
11 yrs 0 mos.
3,192
1,980
62.03%
1,212
37.97%
39 yrs 6 mos.
42 yrs 1 mos.
35 yrs 5 mos.
15 yrs 5 mos.
17 yrs 4 mos.
12 yrs 1 mos.
3,095
1,948
62.94%
1,147
37.06%
40 yrs 5 mos.
42 yrs 8 mos.
36 yrs 6 mos.
16 yrs 4 mos.
18 yrs 1 mos.
13 yrs 4 mos.
Male
Female
Excluding employees seconded from other companies, employees on short-
term contracts and part-time employees.
*
April 1
Number of new hires
Number of newly employed female
graduates
Ratio of newly employed females to
total new employees
2011
2012
2013
44
22
16
0
20
3
50.0%
0.0%
15.0%
Fiscal
Number of employees taking
parental leave
2010
2011
2012
62
<0>
63
<0>
71
<0>
SMFG 2013 2012
2013
2011
2012
2013
◆ SMBC Consumer Finance
2011
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
2,038
1,263
61.97%
775
38.03%
36 yrs 4 mos.
38 yrs 0 mos.
33 yrs 7 mos.
12 yrs 3 mos.
14 yrs 4 mos.
8 yrs 11 mos.
1,971
1,234
62.61%
737
37.39%
37 yrs 2 mos.
38 yrs 9 mos.
34 yrs 5 mos.
13 yrs 1 mos.
15 yrs 1 mos.
9 yrs 9 mos.
2,121
1,299
61.24%
822
38.76%
37 yrs 9 mos.
39 yrs 5 mos.
35 yrs 1 mos.
12 yrs 11 mos.
15 yrs 2 mos.
9 yrs 5 mos.
◆ THE MINATO BANK
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
1,897
1,226
64.63%
671
35.37%
40 yrs 7 mos.
44 yrs 1 mos.
34 yrs 2 mos.
16 yrs 10 mos.
20 yrs 1 mos.
10 yrs 9 mos.
1,911
1,225
64.10%
686
35.90%
41 yrs 0 mos.
44 yrs 5 mos.
34 yrs 11 mos.
17 yrs 1 mos.
20 yrs 4 mos.
11 yrs 4 mos.
1,921
1,220
63.51%
701
36.49%
41 yrs 3 mos.
44 yrs 8 mos.
35 yrs 5 mos.
17 yrs 4 mos.
20 yrs 7 mos.
11 yrs 8 mos.
*
Male
Female
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employees is deducted from
the total number of employees: executive officers, employees on short-term
contracts, part-time employees, employees of temporary employment agen-
cies, and national staff at overseas branches.
*
Male
Female
The number of full-time employees including employees seconded to other
companies or organizations.
The following list of employee is deducted from the total number of employees:
executive officers, employees on short-term contracts, and part-time
employees.
April 1
Number of new hires
Number of newly employed female
graduates
Ratio of newly employed females to
total new employees
2011
2012
2013
23
17
16
11
28
14
73.9%
68.8%
50.0%
Fiscal
Number of employees taking
parental leave
2010
2011
2012
91
<0>
83
<0>
88
<1>
2011
2012
April 1
Number of new hires
Number of newly employed female
graduates**
Ratio of newly employed females to
total new employees
** Includes only sogoshoku staff. Ippanshoku staff are excluded.
23.8%
20.5%
42
10
44
9
2013
51
6
11.8%
Fiscal
Number of employees taking
parental leave
2010
2011
2012
16
<1>
26
<2>
21
<1>
2012
2013
2012
2013
◆ Japan Research Institute
2011
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
2,323
1,782
76.71%
541
23.29%
39 yrs 1 mos.
39 yrs 9 mos.
36 yrs 4 mos.
9 yrs 9 mos.
10 yrs 3 mos.
8 yrs 6 mos.
2,272
1,726
75.97%
546
24.03%
39 yrs 3 mos.
40 yrs 1 mos.
36 yrs 7 mos.
10 yrs 2 mos.
10 yrs 6 mos.
8 yrs 11 mos.
2,265
1,705
75.28%
560
24.72%
39 yrs 9 mos.
40 yrs 6 mos.
37 yrs 3 mos.
10 yrs 8 mos.
11 yrs 1 mos.
9 yrs 6 mos.
*
Male
Female
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employees is deducted from
the total number of employees: executive officers, employees on short-term
contracts, part-time employees, employees of temporary employment agen-
cies, and national staff at overseas branches.
◆ Kansai Urban Banking
March 31
Number of employees*
2011
Average age
Male
Female
Male
Female
Percentage of total
Percentage of total
2,809
1,929
68.67%
880
31.33%
39 yrs 10 mos.
43 yrs 4 mos.
32 yrs 3 mos.
16 yrs 8 mos.
19 yrs 9 mos.
10 yrs 1 mos.
2,712
1,850
68.22%
862
31.78%
40 yrs 1 mos.
43 yrs 5 mos.
32 yrs 11 mos.
16 yrs 11 mos.
19 yrs 10 mos.
10 yrs 9 mos.
2,661
1,788
67.19%
873
32.81%
40 yrs 3 mos.
43 yrs 5 mos.
33 yrs 6 mos.
17 yrs 0 mos.
Male
19 yrs 8 mos.
Female
11 yrs 3 mos.
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employee is deducted from
the total number of employees: executive officers, employees on short-term
contracts, part-time employees, employees of temporary employment
agencies.
Average years of service
*
2011
2012
April 1
Number of new hires
Number of newly employed female
graduates**
Ratio of newly employed females to
total new employees
** Includes only sogoshoku staff. Ippanshoku staff are excluded.
37.7%
39.5%
53
43
17
20
2013
48
15
31.3%
April 1
Number of new hires
Number of newly employed female
graduates
Ratio of newly employed females to
total new employees
2011
2012
2013
86
50
91
55
96
55
58.1%
60.4%
57.3%
Fiscal
Number of employees taking
parental leave
2010
2011
2012
48
<7>
54
<6>
50
<4>
Fiscal
Number of employees taking
parental leave
2010
2011
2012
25
<0>
37
<0>
54
<1>
• The combined employment ratio for persons with disabilities for the above nine companies was 1.98% as of March 2013.
67
SMFG 2013 Main Work-Life Balance Support Systems (Employee Support Programs)
Parental leave
18 months or maximum of
2 years in case of inability
to place in daycare center
Leave for taking care of
sick children
Until March 31 of the 6th
grade (10 days per annum
per one child; 20 days for
two or more children)
SMBC
Sumitomo Mitsui
Finance and Leasing
1 year or maximum of 18
months in case of inability
to place in daycare center
No restrictions on children’s
age or number of days leave
Until 3 years of age
SMBC Nikko
Securities
the
entry
Until
into
elementary school (5 days
per annum per one child;
10 days for two or more
children)
18 months or maximum of
2 years in case of inability
to place in daycare center
Until March 31 of the 3rd
grade (5 days per annum
per child; 10 days for two or
more children)
SMBC Friend
Securities
Sumitomo Mitsui
Card
18 months or maximum of
2 years in case of inability
to place in daycare center
Until March 31 of the 6th
grade (5 days per annum
per child; 10 days for two or
more children)
Until 3 years of age
Until March 31 of the 3rd
grade (5 days per annum
per child; no upper limit)
Cedyna
1 year or maximum of 18
months in case of inability
to place in daycare center
Until the entry into elemen-
tary school (5 days per
annum per child; 10 days
for two or more children)
SMBC Consumer
Finance
Shorter working hours
Employees can choose
shorter working hours for
each day or fewer days
worked per week, both
applicable until March 31 of
the 6th grade
Employees can
reduce
daily working hours to a
minimum of 5 hours 30
minutes until March 31 of
the 6th grade
Employees may reduce daily
working hours in increments
of 30 minutes up to 2.5
hours until March 31 of the
6th grade
Until March 31 of the 3rd
grade
Employees can reduce daily
working hours to between
6 hours and 6 hours 50
minutes until March 31 of
the 3rd grade
Employees can choose
shorter working hours for
each day or fewer days
worked per week, both
applicable until March 31 of
the 3rd grade
Until March 31 of the 3rd
grade
(Employees can
choose to work 5, 6, or 7
hours a day).
the
Until March 31 of
3rd
Employees
grade
can reduce daily working
hours to a minimum of 6
hours (and a maximum
of 8 hours), by taking off
30-minute blocks
Restrictions on
overtime
Exemption from
late-night work
Until March 31 of the
6th grade
Until March 31 of the
6th grade
Other principal systems
• Short-term childcare leave
• Work relocations
• Child-care subsidies
• Leave for nursing care
• Shorter working hours allowed for
nursing care
• System for rehiring former employees
Until the entry into
elementary school
Until the entry into
elementary school
• Work relocations
• System for rehiring former employees
Until March 31 of the
6th grade
Until March 31 of the
6th grade
• Short-term childcare leave
• Use of designated day-care center at
discounted rates
• Leave for nursing care
• Special days off for nursing care
• Shorter working hours allowed for
nursing care
• Short-term leave for nursing care
• Staggered working hours
(shift
system)
Until March 31 of the
3rd grade
Until March 31 of the
3rd grade
• Leave for nursing care
• Shorter working hours allowed for
nursing care
Until March 31 of
the 3rd grade of
elementary school
Until March 31 of
the 3rd grade of
elementary school
Until the entry into
elementary school
Until the entry into
elementary school
Until the entry into
elementary school
Until the entry into
elementary school
Japan Research
Institute
18 months or maximum of
2 years in case of inability
to place in daycare center
Until March 31 of the 6th
grade (5 days per annum
per child; no upper limit)
Employees can choose to
work 4, 5, 6 or 7 hours per
day until March 31 of the
3rd grade (this system can
be combined with flextime).
Until the entry into
elementary school
For employees who
are pregnant or have
given birth within
previous 12 months
Until 3 years of age
THE MINATO BANK
Until the entry into elemen-
tary school (5 days per
annum per child; 10 days
for two or more children)
Until the entry into elemen-
tary school, employees can
opt for 6-hour working day
Until the entry into
elementary school
Until the entry into
elementary school
Kansai Urban
Banking
18 months or maximum of
2 years in case of inability
to place in daycare center
Until the entry into elemen-
tary school (5 days per
annum per child; 10 days
for two or more children)
Until the entry into elemen-
tary school, employees can
opt for 6-hour working day
Until the entry into
elementary school
Until the entry into
elementary school
68
• Work relocations
• Child-care subsidies
• Leave for nursing care
• Shorter working hours allowed for
nursing care
• System for rehiring former employees
• Maternity leave and work
• Short-term childcare leave
• Leave for nursing care
• System for rehiring former employees
• Maternity leave (for men)
• A grace period for job rotation
• Leave for nursing care
• Shorter working hours allowed for
nursing care
• Paid leave by the hour
• Half-day paid leave
• Leave before and after maternity
• Child-care leave (2 days)
• Company-visiting day (2 days a year)
• Rehiring of former employees who quit
for child-care or care-giving reasons
• Husband’s maternity leave (3 days)
• Child-care subsidies
• Leave for nursing care
• Shorter working hours allowed for
nursing care, etc
• More time off and shorter working
hours allowed for nursing care
• Days off for nursing care
• Maternity leave (to help spouse)
• Leave for nursing care
• Shorter working hours allowed for
nursing care
• Child-care allowance
• Short-term childcare leave (5 days)
• System for rehiring former employees
• Leave for nursing care
• Home helpers provided
SMFG 2013 Financial Section and Corporate Data
Financial Data
SMFG
Compensation
SMFG
Consolidated Balance Sheets ..................................... 70
Compensation (Consolidated) ..................................... 232
Consolidated Statements of Income and
Consolidated Statements of Comprehensive Income ... 72
SMBC
Consolidated Statements of
Changes in Net Assets .............................................. 73
Consolidated Statements of Cash Flows .................... 75
Notes to Consolidated Financial Statements .............. 77
Independent Auditor’s Report ..................................... 138
SMBC
Compensation ............................................................. 235
Corporate Data
Sumitomo Mitsui Financial Group, Inc.
Board of Directors, Corporate Auditors,
and Executive Officers .......................................... 239
Supplemental Information ........................................... 139
SMFG Organization ................................................. 239
SMFG
Income Analysis (Consolidated) .................................. 145
Assets and Liabilities (Consolidated)........................... 148
Capital (Nonconsolidated) ........................................... 151
SMBC
Sumitomo Mitsui Banking Corporation
Board of Directors, Corporate Auditors,
and Executive Officers .......................................... 240
SMBC Organization ................................................ 242
Income Analysis (Consolidated) .................................. 154
Principal Subsidiaries and Affiliates
Assets and Liabilities (Consolidated)........................... 157
Principal Domestic Subsidiaries ............................. 244
Income Analysis (Nonconsolidated) ............................ 159
Principal Overseas Subsidiaries ............................. 245
Deposits (Nonconsolidated) ........................................ 163
Principal Affiliates .................................................... 246
Loans (Nonconsolidated)............................................. 165
Securities (Nonconsolidated) ...................................... 170
International Directory ................................................. 247
Ratios (Nonconsolidated) ............................................ 172
Capital (Nonconsolidated) ........................................... 174
Others (Nonconsolidated)............................................ 175
Trust Assets and Liabilities (Nonconsolidated) ............ 177
Capital Ratio Information
SMFG
Capital Ratio Information (Consolidated) .................... 178
SMBC
Capital Ratio Information (Consolidated) .................... 213
Capital Ratio Information (Nonconsolidated) .............. 221
69
SMFG 2013
Consolidated Balance Sheets
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
March 31
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
Assets
Cash and due from banks (Notes 9 and 29) .........................................................
Deposits with banks (Notes 9 and 29)..................................................................
Call loans and bills bought (Notes 9 and 29) ........................................................
Receivables under resale agreements (Note 29) ..................................................
Receivables under securities borrowing transactions (Note 29) ..........................
Monetary claims bought (Notes 9 and 29) ...........................................................
Trading assets (Notes 3, 9 and 29) .......................................................................
Money held in trust (Notes 29 and 30) .................................................................
Securities (Notes 4, 9, 29 and 30) ........................................................................
Loans and bills discounted (Notes 5, 9 and 29) ...................................................
Foreign exchanges (Note 29) ...............................................................................
Lease receivables and investment assets (Notes 9, 28 and 29) ..........................
Other assets (Notes 6, 9, 29 and 31) ....................................................................
Tangible fixed assets (Notes 7, 9 and 15) .............................................................
Intangible fixed assets (Note 8) ............................................................................
Deferred tax assets (Note 24) ...............................................................................
Customers’ liabilities for acceptances and guarantees .......................................
Reserve for possible loan losses (Note 29) ..........................................................
Total assets ..........................................................................................................
¥ 5,202,119
5,597,172
1,353,746
273,217
3,494,398
1,540,516
7,765,554
22,789
41,306,731
65,632,091
2,226,427
1,684,800
4,367,634
1,983,772
790,860
374,258
6,009,575
(928,866)
¥148,696,800
¥ 4,588,858
3,127,432
1,291,818
227,749
4,539,555
1,361,289
8,196,944
23,878
42,529,950
62,720,599
1,280,636
1,699,759
4,622,756
1,180,522
799,773
404,034
5,424,045
(978,933)
¥143,040,672
$ 55,336
59,538
14,400
2,906
37,170
16,387
82,603
242
439,387
698,139
23,683
17,921
46,459
21,102
8,413
3,981
63,925
(9,881)
$1,581,713
70
SMFGSMFG 2013 (Continued)
March 31
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
Liabilities and net assets
Liabilities
Deposits (Notes 9, 10 and 29) ..............................................................................
Call money and bills sold (Notes 9 and 29) ..........................................................
Payables under repurchase agreements (Notes 9 and 29) ..................................
Payables under securities lending transactions (Notes 9 and 29) .......................
Commercial paper (Note 29) ................................................................................
Trading liabilities (Notes 9, 11 and 29)..................................................................
Borrowed money (Notes 9, 12 and 29).................................................................
Foreign exchanges (Note 29) ...............................................................................
Short-term bonds (Notes 13 and 29)....................................................................
Bonds (Notes 13 and 29) ......................................................................................
Due to trust account (Note 29) .............................................................................
Other liabilities (Notes 9, 14, 28, 29 and 31) ........................................................
Reserve for employee bonuses ............................................................................
Reserve for executive bonuses ............................................................................
Reserve for employee retirement benefits (Note 27) ............................................
Reserve for executive retirement benefits ............................................................
Reserve for point service program .......................................................................
Reserve for reimbursement of deposits ...............................................................
Reserve for losses on interest repayment ............................................................
Reserve under the special laws ...........................................................................
Deferred tax liabilities (Note 24) ...........................................................................
Deferred tax liabilities for land revaluation (Note 15) ............................................
Acceptances and guarantees (Note 9) .................................................................
Total liabilities ......................................................................................................
Net assets (Note 25)
Capital stock (Note 16) ........................................................................................
Capital surplus .....................................................................................................
Retained earnings ................................................................................................
Treasury stock .....................................................................................................
Total stockholders’ equity ...................................................................................
Net unrealized gains on other securities (Notes 23, 24 and 30) ...........................
Net deferred losses on hedges (Notes 23, 24 and 31) .........................................
Land revaluation excess (Notes 15 and 23) .........................................................
Foreign currency translation adjustments (Note 23) ............................................
Total accumulated other comprehensive income ..............................................
Stock acquisition rights (Note 32) ........................................................................
Minority interests .................................................................................................
Total net assets ....................................................................................................
Total liabilities and net assets .............................................................................
See accompanying notes to consolidated financial statements.
¥100,837,465
2,954,051
2,076,791
4,433,835
1,499,499
6,119,631
4,979,460
337,901
1,126,300
4,750,806
643,350
3,989,794
59,855
4,037
44,579
2,420
19,319
11,195
245,423
481
68,120
39,683
6,009,575
140,253,582
2,337,895
758,630
2,811,474
(227,373)
5,680,627
755,753
(32,863)
39,129
(97,448)
664,570
1,260
2,096,760
8,443,218
¥148,696,800
¥ 92,722,199
2,144,599
1,676,902
5,810,730
1,193,249
6,248,061
8,839,648
302,580
949,388
4,641,927
443,723
4,762,961
48,516
2,875
45,911
2,577
19,350
10,980
401,276
421
53,852
39,915
5,424,045
135,785,696
2,337,895
759,800
2,152,654
(236,037)
5,014,313
330,433
(32,122)
39,158
(141,382)
196,087
692
2,043,883
7,254,976
¥143,040,672
$1,072,625
31,423
22,091
47,163
15,950
65,096
52,967
3,594
11,981
50,535
6,843
42,440
637
43
474
26
205
119
2,611
5
725
422
63,925
1,491,901
24,869
8,070
29,906
(2,419)
60,426
8,039
(350)
416
(1,037)
7,069
13
22,304
89,812
$1,581,713
71
SMFGConsolidated Balance SheetsSMFG 2013 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
(Consolidated Statements of Income)
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
Year ended March 31
Income
Interest income .....................................................................................................
Interest on loans and discounts .......................................................................
Interest and dividends on securities .................................................................
Interest on receivables under resale agreements .............................................
Interest on receivables under securities borrowing transactions .....................
Interest on deposits with banks .......................................................................
Interest on lease transactions ...........................................................................
Other interest income .......................................................................................
Trust fees ..............................................................................................................
Fees and commissions (Note 17) .........................................................................
Trading income (Note 18) .....................................................................................
Other operating income (Note 19) ........................................................................
Other income (Note 21) ........................................................................................
Total income ........................................................................................................
Expenses
Interest expenses .................................................................................................
Interest on deposits ..........................................................................................
Interest on borrowings and rediscounts ...........................................................
Interest on payables under repurchase agreements ........................................
Interest on payables under securities lending transactions .............................
Interest on bonds and short-term bonds .........................................................
Other interest expenses ...................................................................................
Fees and commissions payments (Note 17) ........................................................
Trading losses ......................................................................................................
Other operating expenses (Note 20) ....................................................................
General and administrative expenses ..................................................................
Provision for reserve for possible loan losses ......................................................
Other expenses (Note 22) .....................................................................................
Total expenses .....................................................................................................
Income before income taxes and minority interests .........................................
Income taxes (Note 24):
¥1,707,513
1,292,930
251,675
6,240
6,565
33,191
64,425
52,483
1,871
1,040,126
206,741
1,283,776
86,780
4,326,809
314,876
137,802
56,530
6,301
6,284
87,755
20,200
131,957
40,124
960,179
1,496,294
36,475
282,867
3,262,775
1,064,033
Current ..............................................................................................................
Deferred ............................................................................................................
Income before minority interests ........................................................................
Minority interests in net income ...........................................................................
Net income ...........................................................................................................
279,898
(133,930)
918,065
124,006
¥ 794,059
¥1,631,592
1,226,546
242,086
5,890
6,823
29,742
68,943
51,560
1,770
955,680
198,192
1,110,566
75,272
3,973,075
290,223
134,476
51,522
3,694
6,852
77,816
15,860
132,099
—
880,998
1,421,363
4,244
291,179
3,020,108
952,966
103,478
207,860
641,627
123,090
¥ 518,536
$18,163
13,753
2,677
66
70
353
685
558
20
11,064
2,199
13,656
923
46,025
3,349
1,466
601
67
67
933
215
1,404
427
10,214
15,916
388
3,009
34,707
11,318
2,977
(1,425)
9,766
1,319
$ 8,447
(Consolidated Statements of Comprehensive Income)
Millions of yen
Year ended March 31
Income before minority interests ........................................................................
Other comprehensive income (Note 23) .............................................................
Net unrealized gains on other securities ..........................................................
Net deferred losses on hedges ........................................................................
Land revaluation excess ...................................................................................
Foreign currency translation adjustments ........................................................
Share of other comprehensive income of affiliates ..........................................
Total comprehensive income ..............................................................................
Comprehensive income attributable to shareholders of the parent ...................
Comprehensive income attributable to minority interests ...............................
See accompanying notes to consolidated financial statements.
2013
¥ 918,065
540,041
445,678
(1,076)
—
99,626
(4,187)
1,458,107
1,262,572
195,534
2012
¥641,627
23,605
69,103
(22,964)
5,613
(23,496)
(4,651)
665,232
541,270
123,961
Millions of
U.S. dollars (Note 1)
2013
$ 9,766
5,745
4,741
(11)
—
1,060
(45)
15,510
13,430
2,080
72
SMFGSMFG 2013 Consolidated Statements of Changes in Net Assets
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Year ended March 31
Stockholders’ equity
Capital stock
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
¥2,337,895
¥2,337,895
$24,869
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
—
¥2,337,895
—
¥2,337,895
—
$24,869
Capital surplus
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
759,800
978,851
8,082
Disposal of treasury stock ............................................................................
Cancellation of treasury stock ......................................................................
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
(1,170)
—
(1,170)
¥ 758,630
(9,047)
(210,003)
(219,050)
¥ 759,800
(12)
—
(12)
$ 8,070
Retained earnings
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
Cash dividends ............................................................................................
Net income ...................................................................................................
Increase due to increase in subsidiaries .......................................................
Increase due to decrease in subsidiaries .....................................................
Decrease due to increase in subsidiaries .....................................................
Decrease due to decrease in subsidiaries ....................................................
Decrease due to decrease in affiliates ..........................................................
Reversal of land revaluation excess .............................................................
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
Treasury stock
2,152,654
1,776,433
22,898
(135,252)
794,059
10
0
(9)
(16)
—
29
658,820
¥2,811,474
(142,010)
518,536
15
1
(7)
(16)
(90)
(208)
376,220
¥2,152,654
(1,439)
8,447
0
0
(0)
(0)
—
0
7,008
$29,906
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
(236,037)
(171,760)
(2,511)
Purchase of treasury stock ...........................................................................
Disposal of treasury stock ............................................................................
Cancellation of treasury stock ......................................................................
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
(263)
8,927
—
8,663
¥ (227,373)
(321,521)
47,242
210,003
(64,276)
¥ (236,037)
(3)
95
—
92
$ (2,419)
Total stockholders’ equity
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
Cash dividends .............................................................................................
Net income ...................................................................................................
Purchase of treasury stock ...........................................................................
Disposal of treasury stock ............................................................................
Cancellation of treasury stock ......................................................................
Increase due to increase in subsidiaries .......................................................
Increase due to decrease in subsidiaries .....................................................
Decrease due to increase in subsidiaries .....................................................
Decrease due to decrease in subsidiaries ....................................................
Decrease due to decrease in affiliates ..........................................................
Reversal of land revaluation excess .............................................................
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
5,014,313
4,921,419
53,338
(135,252)
794,059
(263)
7,756
—
10
0
(9)
(16)
—
29
666,313
¥5,680,627
(142,010)
518,536
(321,521)
38,194
—
15
1
(7)
(16)
(90)
(208)
92,893
¥5,014,313
(1,439)
8,447
(3)
83
—
0
0
(0)
(0)
—
0
7,088
$60,426
73
SMFGSMFG 2013 (Continued)
Year ended March 31
Accumulated other comprehensive income
Net unrealized gains on other securities
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
¥ 330,433
¥ 272,306
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
425,320
425,320
¥ 755,753
58,127
58,127
¥ 330,433
$ 3,515
4,524
4,524
$ 8,039
Net deferred losses on hedges
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
(32,122)
(9,701)
(342)
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
(741)
(741)
¥ (32,863)
(22,420)
(22,420)
¥ (32,122)
(8)
(8)
$ (350)
Land revaluation excess
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
39,158
33,357
417
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
(29)
(29)
¥ 39,129
5,800
5,800
¥ 39,158
(0)
(0)
$ 416
Foreign currency translation adjustments
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
(141,382)
(122,889)
(1,504)
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
43,933
43,933
¥ (97,448)
(18,493)
(18,493)
¥ (141,382)
Total accumulated other comprehensive income
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
196,087
173,073
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
468,483
468,483
¥ 664,570
23,013
23,013
¥ 196,087
Stock acquisition rights
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
692
262
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
567
567
¥ 1,260
429
429
¥ 692
Minority interests
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
2,043,883
2,037,318
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
52,877
52,877
¥2,096,760
6,564
6,564
¥2,043,883
Total net assets
Balance at the beginning of the fiscal year ......................................................
Changes in the fiscal year:
Cash dividends .............................................................................................
Net income ...................................................................................................
Purchase of treasury stock ...........................................................................
Disposal of treasury stock ............................................................................
Cancellation of treasury stock ......................................................................
Increase due to increase in subsidiaries .......................................................
Increase due to decrease in subsidiaries .....................................................
Decrease due to increase in subsidiaries .....................................................
Decrease due to decrease in subsidiaries ....................................................
Decrease due to decrease in affiliates ..........................................................
Reversal of land revaluation excess .............................................................
Net changes in items other than stockholders’ equity in the fiscal year ......
Net changes in the fiscal year.......................................................................
Balance at the end of the fiscal year ................................................................
7,254,976
7,132,073
(135,252)
794,059
(263)
7,756
—
10
0
(9)
(16)
—
29
521,928
1,188,242
¥8,443,218
(142,010)
518,536
(321,521)
38,194
—
15
1
(7)
(16)
(90)
(208)
30,008
122,902
¥7,254,976
See accompanying notes to consolidated financial statements.
74
467
467
$ (1,037)
2,086
4,983
4,983
$ 7,069
7
6
6
$ 13
21,741
562
562
$22,304
77,172
(1,439)
8,447
(3)
83
—
0
0
(0)
(0)
—
0
5,552
12,640
$89,812
SMFGConsolidated Statements of Changes in Net AssetsSMFG 2013 Consolidated Statements of Cash Flows
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Year ended March 31
Cash flows from operating activities:
Income before income taxes and minority interests ........................................
Depreciation .....................................................................................................
Losses on impairment of fixed assets ..............................................................
Amortization of goodwill ...................................................................................
Gains on negative goodwill ..............................................................................
Gains on step acquisitions ...............................................................................
Equity in (gains) losses of affiliates ...................................................................
Net change in reserve for possible loan losses ................................................
Net change in reserve for employee bonuses ..................................................
Net change in reserve for executive bonuses ..................................................
Net change in reserve for employee retirement benefits ..................................
Net change in reserve for executive retirement benefits ..................................
Net change in reserve for point service program .............................................
Net change in reserve for reimbursement of deposits .....................................
Net change in reserve for losses on interest repayment ..................................
Interest income .................................................................................................
Interest expenses .............................................................................................
Net gains on securities .....................................................................................
Net losses from money held in trust .................................................................
Net exchange (gains) losses .............................................................................
Net losses from disposal of fixed assets ..........................................................
Net change in trading assets ............................................................................
Net change in trading liabilities ........................................................................
Net change in loans and bills discounted ........................................................
Net change in deposits .....................................................................................
Net change in negotiable certificates of deposit ..............................................
Net change in borrowed money (excluding subordinated borrowings) ............
Net change in deposits with banks ..................................................................
Net change in call loans and bills bought and others ......................................
Net change in receivables under securities borrowing transactions ................
Net change in call money and bills sold and others .........................................
Net change in commercial paper .....................................................................
Net change in payables under securities lending transactions ........................
Net change in foreign exchanges (assets) ........................................................
Net change in foreign exchanges (liabilities) ....................................................
Net change in lease receivables and investment assets ..................................
Net change in short-term bonds (liabilities) ......................................................
Issuance and redemption of bonds (excluding subordinated bonds) ..............
Net change in due to trust account ..................................................................
Interest received ...............................................................................................
Interest paid ......................................................................................................
Other, net ..........................................................................................................
Subtotal ............................................................................................................
Income taxes paid ............................................................................................
Net cash provided by operating activities..........................................................
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
¥ 1,064,033
184,400
4,314
25,329
(3)
(140)
(5,309)
(45,596)
11,328
1,162
(1,572)
(98)
(30)
214
(155,083)
(1,707,513)
314,876
(91,432)
1,587
(859,265)
5,480
508,869
(217,461)
(2,837,157)
4,601,549
3,122,529
(4,349,415)
(2,195,718)
(187,455)
1,045,156
1,163,090
306,250
(1,376,894)
(912,372)
33,865
27,486
216,900
505,627
199,626
1,732,270
(323,687)
415,235
224,976
(133,520)
91,455
¥ 952,966
165,113
3,861
21,681
—
(25,050)
31,122
(90,007)
2,816
378
(5,083)
(194)
422
1,056
(25,756)
(1,631,592)
290,223
(130,612)
1,464
16,145
3,765
(1,588,903)
1,029,341
(828,051)
2,299,767
228,846
(1,994,204)
462,914
(793,288)
200,855
472,525
856,129
97,497
(205,926)
46,712
30,875
(233,809)
352,424
227,552
1,663,901
(295,539)
327,828
1,940,166
(101,981)
1,838,185
$ 11,318
1,961
46
269
(0)
(1)
(56)
(485)
120
12
(17)
(1)
(0)
2
(1,650)
(18,163)
3,349
(973)
17
(9,140)
58
5,413
(2,313)
(30,179)
48,947
33,215
(46,265)
(23,356)
(1,994)
11,117
12,372
3,258
(14,646)
(9,705)
360
292
2,307
5,378
2,123
18,426
(3,443)
4,417
2,393
(1,420)
973
75
SMFGSMFG 2013 (Continued)
Year ended March 31
Cash flows from investing activities:
Purchases of securities ....................................................................................
Proceeds from sale of securities ......................................................................
Proceeds from maturity of securities ................................................................
Purchases of money held in trust .....................................................................
Proceeds from sale of money held in trust .......................................................
Purchases of tangible fixed assets ...................................................................
Proceeds from sale of tangible fixed assets .....................................................
Purchases of intangible fixed assets ................................................................
Proceeds from sale of intangible fixed assets ..................................................
Purchases of stocks of subsidiaries .................................................................
Purchases of treasury stocks of subsidiaries ...................................................
Purchases of stocks of subsidiaries resulting in change in scope of
consolidation ..................................................................................................
Proceeds from sale of stocks of subsidiaries resulting in change in
scope of consolidation ...................................................................................
Net cash provided by (used in) investing activities ...........................................
Cash flows from financing activities:
Proceeds from issuance of subordinated borrowings ......................................
Repayment of subordinated borrowings ..........................................................
Proceeds from issuance of subordinated bonds and bonds with
stock acquisition rights ....................................................................................
Repayment of subordinated bonds and bonds with stock
acquisition rights .............................................................................................
Dividends paid ..................................................................................................
Repayment to minority stockholders ................................................................
Dividends paid to minority stockholders ..........................................................
Purchases of treasury stock .............................................................................
Proceeds from disposal of treasury stock ........................................................
Purchases of treasury stock of subsidiaries .....................................................
Proceeds from sale of treasury stock of subsidiaries .......................................
Net cash used in financing activities ..................................................................
Effect of exchange rate changes on cash and due from banks........................
Net change in cash and due from banks ...........................................................
Cash and due from banks at the beginning of the year ....................................
Increase in cash and due from banks from newly consolidated subsidiaries ..
Cash and due from banks at the end of the year ..............................................
See accompanying notes to consolidated financial statements.
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
¥(52,234,418)
46,632,816
7,224,688
(3,791)
3,191
(291,609)
96,692
(106,291)
212
(7,549)
—
¥(50,614,876)
32,372,433
15,925,697
(3,011)
1,540
(131,154)
30,343
(101,447)
24
—
(1,773)
(95,721)
(67,369)
34,916
1,253,136
50
(2,589,543)
33,200
(93,000)
106,000
(103,000)
127,263
557,360
(561,289)
(135,202)
(12,500)
(101,352)
(263)
23
(5)
178
(742,948)
11,616
613,260
4,588,858
0
¥ 5,202,119
(306,471)
(141,921)
—
(93,125)
(321,521)
2,390
(14)
183
(300,119)
(4,757)
(1,056,236)
5,645,094
—
¥ 4,588,858
$(555,626)
496,041
76,850
(40)
34
(3,102)
1,029
(1,131)
2
(80)
—
(1,018)
371
13,330
353
(989)
1,354
(5,971)
(1,438)
(133)
(1,078)
(3)
0
(0)
2
(7,903)
124
6,523
48,812
0
$ 55,336
76
SMFGConsolidated Statements of Cash FlowsSMFG 2013 Notes to Consolidated Financial Statements
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Years ended March 31, 2013 and 2012
1. Basis of Presentation
Sumitomo Mitsui Financial Group, Inc. (“SMFG”) was established
on December 2, 2002 as a holding company for the SMFG group
through a statutory share transfer (kabushiki iten) of all of the out-
standing equity securities of Sumitomo Mitsui Banking Corporation
(“SMBC”) in exchange for SMFG’s newly issued securities. SMFG
is a joint stock corporation with limited liability (Kabushiki Kaisha)
incorporated under the Companies Act of Japan. Upon formation of
SMFG and completion of the statutory share transfer, SMBC became
a direct wholly owned subsidiary of SMFG.
SMFG has prepared the accompanying consolidated financial
statements in accordance with the provisions set forth in the Japanese
Financial Instruments and Exchange Act and its related accounting
regulations, and in conformity with accounting principles gener-
ally accepted in Japan (“Japanese GAAP”), which are different in
certain respects as to application and disclosure requirements from
International Financial Reporting Standards.
The accounts of overseas subsidiaries and affiliated companies are
in principle integrated with those of SMFG’s accounting policies for
purposes of consolidation unless they apply different accounting prin-
ciples and standards as required under U.S. GAAP or International
Financial Reporting Standards in which case a certain limited
number of items are adjusted based on their materiality.
The accompanying consolidated financial statements have been
restructured and translated into English from the consolidated
financial statements of SMFG prepared in accordance with Japanese
GAAP.
Some supplementary information included in the statutory
Japanese language consolidated financial statements, but not
necessarily required for fair presentation, is not presented in the
accompanying consolidated financial statements.
Amounts less than 1 million yen have been omitted. As a result,
the totals in Japanese yen shown in the financial statements do
not necessarily agree with the sum of the individual amounts. The
translation of the Japanese yen amounts into U.S. dollars is included
solely for the convenience of readers outside Japan, using the prevail-
ing exchange rate at March 31, 2013, which was ¥94.01 to US$1.
These translations should not be construed as representations that
the Japanese yen amounts have been, could have been, or could in the
future be, converted into U.S. dollars at that rate.
2. Significant Accounting Policies
(1) Consolidation and equity method
(a) Scope of consolidation
Japanese accounting standards on consolidated financial
statements require a company to consolidate any subsidiary
when the company substantially controls the operations of
the enterprise, even if it is not a majority owned subsidiary.
Control is defined as the power to govern the decision-
making body of an enterprise.
(i) Consolidated subsidiaries
323 companies
Principal companies:
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Finance and Leasing Company, Limited
SMBC Nikko Securities Inc.
SMBC Friend Securities Co., Ltd.
Sumitomo Mitsui Card Company, Limited
Cedyna Financial Corporation
SMBC Consumer Finance Co., Ltd. (“Promise”)
The Japan Research Institute, Limited
THE MINATO BANK, LTD.
Kansai Urban Banking Corporation
Sumitomo Mitsui Banking Corporation Europe Limited
Sumitomo Mitsui Banking Corporation (China) Limited
SMBC Finance Service Co., Ltd.
SMBC Capital Markets, Inc.
Changes in the consolidated subsidiaries in the fiscal
year ended March 31, 2013 are as follows:
43 companies including SMBC Aviation Capital Limited
were included in the scope of consolidated subsidiaries as a
result of acquisitions of stocks and other reasons.
50 companies including ORIX Credit Corporation
were excluded from the scope of consolidated subsidiaries
because they were no longer subsidiaries as a result of sale
of stocks and other reasons.
7 companies including SMFL Speed Co., Ltd. were
excluded from the scope of consolidation and became
unconsolidated subsidiaries that are not accounted for by
the equity method because they became operators of silent
partnerships for lease transactions.
(ii) Unconsolidated subsidiaries
Principal company:
SBCS Co., Ltd.
186 subsidiaries including SMLC MAHOGANY CO.,
LTD. are operators of silent partnerships for lease transac-
tions and their assets and profits/losses do not belong to
them substantially. Therefore, they have been excluded
from the scope of consolidation pursuant to Article 5,
Paragraph 1, Item 2 of Consolidated Financial Statements
Regulations.
77
SMFGSMFG 2013 Other unconsolidated subsidiaries including SBCS Co.,
Ltd. are also excluded from the scope of consolidation
because their total amounts in terms of total assets,
ordinary income, net income and retained earnings are
immaterial, as such, they do not hinder a rational judg-
ment of SMFG’s financial position and results of operations
when excluded from the scope of consolidation.
(b) Application of the equity method
Japanese accounting standards also require that any
unconsolidated subsidiaries and affiliates which SMFG is
able to exercise material influence over their financial and
operating policies be accounted for by the equity method.
(i) Unconsolidated subsidiaries accounted for by the equity
method
5 companies
Principal company:
SBCS Co., Ltd.
PT. SBCS INDONESIA became an unconsolidated sub-
sidiary accounted for by the equity method from the fiscal
year ended March 31, 2013 because it became a subsidiary
due to establishment.
(ii) Equity method affiliates
39 companies
Principal companies:
Sumitomo Mitsui Auto Service Company, Limited
Daiwa SB Investments Ltd.
Changes in the equity method affiliates in the fiscal year
ended March 31, 2013 are as follows:
2 companies including China Post & Capital Fund
Management Co., Ltd. became equity method affiliates due
mainly to acquisitions of equity interest.
2 companies including Famima Credit Corporation were
excluded from the scope of equity method affiliates because
they were no longer equity method affiliates due mainly to
mergers.
(iii) Unconsolidated subsidiaries that are not accounted for
by the equity method
186 subsidiaries including SMLC MAHOGANY CO.,
LTD. are operators of silent partnerships for lease transac-
tions and their assets and profits/losses do not belong
to them substantially. Therefore, they have not been
accounted for by the equity method pursuant to Article 10,
Paragraph 1, Item 2 of Consolidated Financial Statements
Regulations.
(iv) Affiliates that are not accounted for by the equity
method
Principal company:
Daiwa SB Investments (USA) Ltd.
Affiliates that are not accounted for by the equity
method are also excluded from the scope of equity method
because their total amounts in terms of net income and
retained earnings are immaterial, and as such, they do not
hinder a rational judgment of SMFG’s financial position
and results of operations when excluded from the scope of
equity method.
78
(c) The balance sheet dates of consolidated subsidiaries
(i) The balance sheet dates of the consolidated subsidiaries
are as follows:
4 companies
June 30 .................................................
1 company
September 30 ........................................
1 company
October 31 ............................................
November 30 ........................................
2 companies
December 31 ......................................... 107 companies
51 companies
January 31 .............................................
7 companies
February 28 ...........................................
March 31 ............................................... 150 companies
(ii) The subsidiaries with balance sheets dated June 30,
September 30, November 30 are consolidated using the
financial statements as of March 31 for the purpose of
consolidation. The subsidiaries with balance sheets dated
October 31 are consolidated using the financial statements
as of January 31. Certain subsidiaries with balance sheets
dated December 31 and January 31 are consolidated using
the financial statements as of March 31. Other subsidiaries
are consolidated using them on their respective balance
sheet dates.
Appropriate adjustments were made for material transac-
tions during the periods between their respective balance
sheet dates and the consolidated closing date.
(d) Special purpose entities
(i) Outline of special purpose entities and transactions
SMBC, a consolidated subsidiary of SMFG, provides
credit lines, liquidity lines and loans to 13 special purpose
entities (“SPEs”) for their fund needs and issuing of
commercial paper. The SPEs are engaged in purchases of
monetary claims such as receivables from SMBC customers
and incorporated under the laws of the Cayman Islands or
as intermediate corporations with limited liabilities.
The combined assets and liabilities of the 13 SPEs as of
their most recent closing dates of 2013 were ¥1,994,975
million ($21,221 million) and ¥1,994,812 million
($21,219 million), respectively. SMBC has no voting rights
in the SPEs and sends no directors or employees.
(ii) The amount of principal transactions with the SPEs as
of and for the fiscal years ended March 31, 2013 and 2012
were as follows:
Millions of yen
2013
March 31
Loans and bills
discounted .................. ¥1,361,877 ¥1,486,284
723,383
Credit lines ...................
352,547
Liquidity lines ..............
715,809
460,059
2012
Year ended March 31
Interest on loans and
discounts ....................
Fees and commissions ...
Millions of yen
2013
2012
¥10,786
1,811
¥13,388
1,842
Millions of
U.S. dollars
2013
$14,487
7,614
4,894
Millions of
U.S. dollars
2013
$115
19
SMFGNotes to Consolidated Financial StatementsSMFG 2013 (2) Trading assets/liabilities and trading income/losses
Transactions for trading purposes (seeking gains arising from
short-term changes in interest rates, currency exchange rates,
or market prices of securities and other market related indices
or from variation among markets) are included in “Trading
assets” or “Trading liabilities” on the consolidated balance
sheet on a trade date basis. Profit and losses on trading-
purpose transactions are recognized on a trade date basis and
recorded as “Trading income” and “Trading losses” on the
consolidated statements of income.
Securities and monetary claims purchased for trading
purposes are stated at the fiscal year-end market value, and
financial derivatives such as swaps, futures and options are
stated at amounts that would be settled if the transactions
were terminated at the consolidated balance sheet date.
“Trading income” and “Trading losses” include interest
received or paid during the fiscal year. The year-on-year
valuation differences of securities and monetary claims are
also recorded in the above-mentioned accounts. As for the
derivatives, assuming that the settlement will be made in
cash, the year-on-year valuation differences are also recorded in
the above-mentioned accounts.
(3) Securities
(a) Debt securities that consolidated subsidiaries have the
positive intent and ability to hold to maturity are classified
as held-to-maturity securities and are carried at amortized
cost (straight-line method) using the moving-average
method.
Investments in unconsolidated subsidiaries and affiliates
that are not accounted for by the equity method are carried
at cost using the moving-average method.
Securities other than trading purpose securities, held-
to-maturity securities and investments in unconsolidated
subsidiaries and affiliates are classified as “other securities”
(available-for-sale securities). Stocks (including foreign
stocks) in other securities are carried at their average
market prices during the final month of the fiscal year, and
bonds and others are carried at their fiscal year-end market
prices (cost of securities sold is calculated using primarily
the moving-average method). However, other securities
which are extremely difficult to determine fair value with
no available market prices are carried at cost using the
moving-average method. Net unrealized gains (losses)
on other securities, net of income taxes, are included in
“Net assets,” after deducting the amount that is reflected
in the fiscal year’s earnings by applying fair value hedge
accounting.
(b) Securities included in money held in trust are carried using
the same method used for securities mentioned above.
(4) Derivative transactions
Derivative transactions, excluding those for trading purposes,
are carried at fair value.
(5) Depreciation
(a) Tangible fixed assets (excluding assets for rent and lease
assets)
Buildings owned by SMFG and SMBC are depreciated
using the straight-line method. Others are depreciated
using the declining-balance method. The estimated useful
lives of major items are as follows:
Buildings: 7 to 50 years
Others: 2 to 20 years
Other consolidated subsidiaries depreciate their tangible
fixed assets primarily using the straight-line method over
the estimated useful lives of the respective assets.
(Changes in accounting policies which are difficult to
distinguish from changes in accounting estimates)
In accordance with the amendment of the Corporation Tax
Act, effective from the fiscal year ended March 31, 2013,
SMFG and its consolidated domestic subsidiaries have
changed their depreciation method for those tangible fixed
assets acquired on or after April 1, 2012. This change has
little impact on income before income taxes and minority
interests for the fiscal year ended March 31, 2013.
(b) Intangible fixed assets
Intangible fixed assets are depreciated using the straight-
line method. Capitalized software for internal use owned
by SMFG and its consolidated domestic subsidiaries is
depreciated over its estimated useful life (basically 5 years).
(c) Assets for rent
Assets for rent are depreciated using the straight-line
method, over the rental period or expected lifetime of
assets as the depreciation period and estimated disposal
values at the expiration date as salvage values.
(d) Lease assets
Lease assets with respect to non-transfer ownership finance
leases, which are recorded in “Tangible fixed assets,” are
depreciated using the straight-line method, assuming that
lease terms are their expected lifetime and salvage values
are 0.
(6) Reserve for possible loan losses
The reserve for possible loan losses of major consolidated
subsidiaries is provided as detailed below in accordance with
the internal standards for write-offs and provisions.
For claims on borrowers that have entered into bankruptcy,
special liquidation proceedings or similar legal proceedings
(“bankrupt borrowers”) or borrowers that are not legally or
formally insolvent but are regarded as substantially in the
same situation (“effectively bankrupt borrowers”), a reserve
is provided based on the amount of claims, after the write-off
stated below, net of the expected amount of recoveries from
collateral and guarantees.
For claims on borrowers that are not currently bankrupt but
are perceived to have a high risk of falling into bankruptcy
(“potentially bankrupt borrowers”), a reserve is provided in the
amount deemed necessary based on an overall solvency assess-
ment of the claims, net of the expected amount of recoveries
from collateral and guarantees.
Discounted cash flows (“DCF”) method is used for claims
on borrowers whose cash flows from collection of principals
and interest can be rationally estimated and SMBC applies
it to claims on large potentially bankrupt borrowers and
claims on large borrowers requiring close monitoring that
have been classified as “Past due loans (3 months or more)” or
“Restructured loans,” whose total loans from SMBC exceed a
79
SMFGNotes to Consolidated Financial StatementsSMFG 2013
certain amount. SMBC establishes a reserve for possible loan
losses using the DCF method for such claims in the amount
of the difference between the present value of principal and
interest (calculated using the rationally estimated cash flows
discounted at the initial contractual interest rate) and the book
value.
For other claims, a reserve is provided based on the histori-
cal loan-loss ratio.
For claims originated in specific overseas countries, an
additional reserve is provided in the amount deemed necessary
based on the assessment of political and economic conditions.
Branches and credit supervision departments assess all
claims in accordance with the internal rules for self-assessment
of assets, and the Credit Review Department, independent
from these operating sections, audits their assessment.
The reserve for possible loan losses of SMFG and other
consolidated subsidiaries for general claims is provided in the
amount deemed necessary based on the historical loan-loss
ratios, and for doubtful claims in the amount deemed uncol-
lectible based on assessment of each claim.
For collateralized or guaranteed claims on bankrupt borrow-
ers and effectively bankrupt borrowers, the amount exceeding
the estimated value of collateral and guarantees is deemed to
be uncollectible and written off against the total outstanding
amount of the claims. The amount of write-off was ¥653,146
million ($6,948 million) and ¥685,871 million for the years
ended March 31, 2013 and 2012, respectively.
(7) Reserve for employee bonuses
The reserve for employee bonuses is provided for payment of
bonuses to employees, in the amount of estimated bonuses,
which are attributable to the respective fiscal year.
(8) Reserve for executive bonuses
The reserve for executive bonuses is provided for payment of
bonuses to executives, in the amount of estimated bonuses,
which are attributable to the respective fiscal year.
(9) Reserve for employee retirement benefits
The reserve for employee retirement benefits is provided for
payment of retirement benefits to employees, in the amount
deemed accrued at the fiscal year-end, based on the projected
retirement benefit obligation and the fair value of plan assets
at the fiscal year-end.
Unrecognized prior service cost is amortized using the
straight-line method, primarily over 9 years within the
employees’ average remaining service period at incurrence.
Unrecognized net actuarial gain or loss is amortized using
the straight-line method, primarily over 9 years within the
employees’ average remaining service period, commencing
from the next fiscal year of incurrence.
(10) Reserve for executive retirement benefits
The reserve for executive retirement benefits is provided for
payment of retirement benefits to directors, corporate auditors
and other executive officers, in the amount deemed accrued at
the fiscal year-end based on the internal regulations.
(11) Reserve for point service program
The reserve for point service program is provided for the
potential future redemption of points awarded to customers
under the “SMBC Point Pack,” credit card points programs,
and other customer points award programs. The amount
is calculated by converting the outstanding points into a
monetary amount, and rationally estimating and recognizing
the amount that will be redeemed in the future.
(12) Reserve for reimbursement of deposits
The reserve for reimbursement of deposits which were
derecognized as liabilities under certain conditions is provided
for the possible losses on the future claims of withdrawal based
on the historical reimbursements.
(13) Reserve for losses on interest repayment
The reserve for losses on interest repayment is provided for the
possible losses on future claims of repayment of interest based
on historical interest repayment experience.
(14) Reserve under the special laws
The reserve under the special laws is a reserve provided for
compensation for future eventual operational losses from
securities related transactions or derivative transactions, pursu-
ant to Article 46-5 of the Financial Instruments and Exchange
Act.
(15) Translation of foreign currency assets and liabilities
Assets and liabilities of SMFG and SMBC denominated in
foreign currencies and accounts of SMBC overseas branches are
translated into Japanese yen mainly at the exchange rates
prevailing at the consolidated balance sheet date, with the
exception of stocks of subsidiaries and affiliates translated at
rates prevailing at the time of acquisition.
Other consolidated subsidiaries’ assets and liabilities
denominated in foreign currencies are translated into Japanese
yen at the exchange rates prevailing at their respective balance
sheet dates.
(16) Lease transactions
(a) Recognition of income on finance leases
Interest income is allocated to each period, based on the
interest method.
(b) Recognition of income on operating leases
Primarily, lease-related income is recognized on a straight-
line basis over the full term of the lease, based on the
contractual amount of lease fees per month.
(c) Recognition of income and expenses on installment sales
Primarily, installment-sales-related income and installment-
sales-related expenses are recognized on a due-date basis over
the full period of the installment sales.
(17) Hedge accounting
(a) Hedging against interest rate changes
As for the hedge accounting method applied to hedging
transactions for interest rate risk arising from financial
assets and liabilities, SMBC applies deferred hedge
accounting.
SMBC applies deferred hedge accounting stipulated in
“Treatment for Accounting and Auditing of Application
of Accounting Standard for Financial Instruments in
Banking Industry” (Japanese Institute of Certified Public
Accountants (“JICPA”) Industry Audit Committee Report
No. 24) to portfolio hedges on groups of large-volume,
small-value monetary claims and debts.
As for the portfolio hedges to offset market fluctuation,
SMBC assesses the effectiveness of such hedges by clas-
sifying the hedged items (such as deposits and loans) and
the hedging instruments (such as interest rate swaps) by
their maturity. As for the portfolio hedges to fix cash flows,
SMBC assesses the effectiveness of such hedges by verifying
80
SMFGNotes to Consolidated Financial StatementsSMFG 2013 the correlation between the hedged items and the hedging
instruments.
As for the individual hedges, SMBC also assesses the
effectiveness of such individual hedges.
As a result of the application of JICPA Industry Audit
Committee Report No. 24, SMBC discontinued the
application of hedge accounting or applied fair value hedge
accounting to a portion of the hedging instruments using
“macro hedge,” which had been applied in order to manage
interest rate risk arising from large-volume transactions
in loans, deposits and other interest-earning assets and
interest-bearing liabilities as a whole using derivatives
pursuant to “Temporary Treatment for Accounting and
Auditing of Application of Accounting Standard for
Financial Instruments in Banking Industry” (JICPA
Industry Audit Committee Report No. 15). The deferred
hedge losses and gains related to such a portion of hedging
instruments are charged to “Interest income” or “Interest
expenses” over a 12-year period (maximum) according
to their maturity from the fiscal year ended March 31,
2004. Gross amounts of deferred hedge losses on “macro
hedge” (before deducting tax effect) at March 31, 2013
and 2012 were ¥70 million ($1 million) and ¥309 million,
respectively. Gross amounts of deferred hedge gains on
“macro hedge” (before deducting tax effect) at March 31,
2013 and 2012 were ¥17 million ($0 million) and ¥188
million, respectively.
(b) Hedging against currency fluctuations
SMBC applies deferred hedge accounting stipulated in
“Treatment of Accounting and Auditing Concerning
Accounting for Foreign Currency Transactions in Banking
Industry” (JICPA Industry Audit Committee Report
No. 25) to currency swap and foreign exchange swap trans-
actions executed for the purpose of lending or borrowing
funds in different currencies.
Pursuant to JICPA Industry Audit Committee Report
No. 25, SMBC assesses the effectiveness of currency swap
and foreign exchange swap transactions executed for
the purpose of offsetting the risk of changes in currency
exchange rates by verifying that there are foreign-currency
monetary claims and debts corresponding to the foreign-
currency positions.
In order to hedge risk arising from volatility of exchange
rates for stocks of subsidiaries and affiliates and other
securities (excluding bonds) denominated in foreign
currencies, SMBC applies deferred hedge accounting or
fair value hedge accounting, on the conditions that the
hedged securities are designated in advance and that suf-
ficient on-balance (actual) or off-balance (forward) liability
exposure exists to cover the cost of the hedged securities
denominated in the same foreign currencies.
(c) Hedging against share price fluctuations
SMBC applies fair value hedge accounting to individual
hedges offsetting the price fluctuation of the shares that are
classified under other securities, and that are held for the
purpose of strategic investment, and accordingly evaluates
the effectiveness of such individual hedges.
(d) Transactions between consolidated subsidiaries
As for derivative transactions between consolidated
subsidiaries or internal transactions between trading
accounts and other accounts (or among internal sections),
SMBC manages the interest rate swaps and currency swaps
that are designated as hedging instruments in accordance
with the strict criteria for external transactions stipulated
in JICPA Industry Audit Committee Report No. 24 and
No. 25. Therefore, SMBC accounts for the gains or losses
that arise from interest rate swaps and currency swaps in its
earnings or defers them, rather than eliminating them.
Certain other consolidated subsidiaries apply the
deferred hedge accounting or fair value hedge accounting
or the special treatment for interest rate swaps.
(18) Amortization of goodwill
Goodwill on SMBC Friend Securities Co., Ltd., Sumitomo
Mitsui Finance and Leasing Company, Limited, SMBC Nikko
Securities Inc., Kansai Urban Banking Corporation, Cedyna
Financial Corporation and SMBC Consumer Finance Co., Ltd.
is amortized using the straight-line method over 20 years.
Goodwill related to SMBC Aviation Capital is amortized
using the straight-line method over 10 years. Goodwill on
other companies is charged or credited to income directly
when incurred.
(19) Statements of cash flows
For the purposes of presenting the consolidated statements of
cash flows, cash and cash equivalents represent cash and due
from banks.
(20) Consumption taxes
National and local consumption taxes of SMFG and its
consolidated domestic subsidiaries are accounted for using the
tax-excluded method.
(21) Unapplied Accounting Standards, etc.
(a) Revisions of Accounting Standard for Consolidated
Financial Statements (ASBJ Statement No. 22, revised on
March 25, 2011)
(i) Outline
A special purpose entity (“SPE”) that meets certain require-
ments was previously assumed not to be regarded as a
subsidiary of the entity that either had invested in the SPE
or assigned assets to the SPE. Following the revisions of
the aforementioned accounting standard, the treatment is
only applied to a case where a company has assigned assets
to an SPE.
(ii) Date of application
SMFG intends to adopt the revised accounting standard
from the fiscal year beginning on April 1, 2013.
(iii) Effects of adoption of the revised accounting standard
Effects of adoption of the revised accounting standard are
immaterial.
(b) Accounting Standard for Retirement Benefits (ASBJ
Statement No. 26, revised on May 17, 2012)
(i) Outline
The accounting standard has been revised in light of
improving financial reporting and trend toward interna-
tional convergence, mainly on i) changes in accounting
methods for unrecognized net actuarial gains or loss and
unrecognized prior service cost, and enhancement of disclo-
sure items; as well as ii) changes of calculation methods for
projected benefit obligation and service cost.
81
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(ii) Date of application
SMFG intends to adopt i) to consolidated financial state-
ments as of the end of the fiscal year beginning on April
1, 2013, and to adopt ii) from the fiscal year beginning on
April 1, 2014.
(iii) Effects of adoption of the revised accounting standard
Effects of adoption of the revised accounting standard are
currently examined.
3. Trading Assets
Trading assets at March 31, 2013 and 2012 consisted of the following:
March 31
Trading securities ................................................................................................
Derivatives of trading securities ...........................................................................
Derivatives of securities related to trading transactions ........................................
Trading-related financial derivatives ....................................................................
Other trading assets .............................................................................................
Millions of yen
2013
¥3,220,858
3,614
26,044
4,327,085
187,952
¥7,765,554
2012
¥4,027,609
3,419
19,503
3,888,692
257,718
¥8,196,944
Millions of
U.S. dollars
2013
$34,261
38
277
46,028
1,999
$82,603
4. Securities
Securities at March 31, 2013 and 2012 consisted of the following:
March 31
Japanese government bonds*1 ..............................................................................
Japanese local government bonds .........................................................................
Japanese corporate bonds*2 ..................................................................................
Japanese stocks*1, 3, 4 ............................................................................................
Other*1, 3, 4 ..........................................................................................................
Millions of
U.S. dollars
2013
$287,144
3,786
32,071
32,285
84,101
$439,387
*1 Unsecured loaned securities for which borrowers have the right to sell or pledge in the amount of ¥50,716 million ($539 million) and ¥51,022 million are included in Japanese
2013
¥26,994,438
355,883
3,015,019
3,035,072
7,906,318
¥41,306,731
2012
¥29,327,057
474,884
3,155,712
2,615,168
6,957,128
¥42,529,950
Millions of yen
government bonds and Japanese stocks in Securities and in trading securities in Trading assets at March 31, 2013 and 2012, respectively.
SMBC has the right to sell or pledge, some of the unsecured borrowed securities, securities under resale agreements and securities borrowed with cash collateral. Of these securities,
¥1,238,199 million ($13,171 million) are pledged, and ¥821,378 million ($8,737 million) are held in hand at March 31, 2013. The respective amounts at March 31, 2012 were
¥1,961,135 million and ¥378,167 million.
*2 Japanese corporate bonds include private placement bonds (stipulated by Article 2-3 of the Financial Instruments and Exchange Act) which are guaranteed by banking subsidiaries in
the amount of ¥1,823,931 million ($19,401 million) and ¥1,851,841 million at March 31, 2013 and 2012, respectively.
*3 Japanese stocks and other include investments in unconsolidated subsidiaries and affiliates of ¥257,871 million ($2,743 million) and ¥231,200 million at March 31, 2013 and 2012,
respectively.
*4 Japanese stocks and other include investments in jointly controlled entities of ¥125,057 million ($1,330 million) and ¥107,866 million at March 31, 2013 and 2012, respectively.
5. Loans and Bills Discounted
(1) Loans and bills discounted at March 31, 2013 and 2012 consisted of the following:
March 31
Bills discounted ...............................................................................................
Loans on notes .................................................................................................
Loans on deeds .................................................................................................
Overdrafts .......................................................................................................
Millions of yen
2013
¥ 199,057
2,163,861
56,620,452
6,648,720
¥65,632,091
2012
¥ 202,971
2,070,729
53,647,541
6,799,356
¥62,720,599
(2) Loans and bills discounted included the following “Risk-monitored loans” stipulated in the Banking Act:
March 31
Risk-monitored loans:
Bankrupt loans*1..........................................................................................
Non-accrual loans*2 .....................................................................................
Past due loans (3 months or more)*3.............................................................
Restructured loans*4 ....................................................................................
Millions of yen
2013
2012
¥ 55,479
1,130,562
16,044
484,963
¥1,687,049
¥ 74,218
1,145,347
22,502
562,882
¥1,804,951
Millions of
U.S. dollars
2013
$ 2,117
23,017
602,281
70,724
$698,139
Millions of
U.S. dollars
2013
$ 590
12,026
171
5,159
$17,945
82
SMFGNotes to Consolidated Financial StatementsSMFG 2013 *1 “Bankrupt loans” are loans, after write-off, to legally bankrupt borrowers as defined in Articles 96-1-3 and 96-1-4 of the Enforcement Ordinance No. 97 of the Japanese Corporate
Tax Law (issued in 1965) and on which accrued interest income is not recognized as there is substantial doubt about the ultimate collectability of either principal or interest
because they are past due for a considerable period of time or for other reasons.
*2 “Non-accrual loans” are loans on which accrued interest income is not recognized, excluding “Bankrupt loans” and loans on which interest payments are deferred in order to
support the borrowers’ recovery from financial difficulties.
*3 “Past due loans (3 months or more)” are loans on which the principal or interest is past due for 3 months or more, excluding “Bankrupt loans” and “Non-accrual loans.”
*4 “Restructured loans” are loans on which terms and conditions have been amended in favor of the borrowers (e.g., reduction of the original interest rate, deferral of interest
payments, extension of principal repayments or debt forgiveness) in order to support the borrowers’ recovery from financial difficulties, excluding “Bankrupt loans,” “Non-accrual
loans” and “Past due loans (3 months or more).”
(3) Bills discounted are accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24. SMFG’s
banking subsidiaries have rights to sell or pledge bank acceptance bought, commercial bills discounted, documentary bills and foreign
exchanges bought without restrictions. The total face value at March 31, 2013 and 2012 was ¥887,690 million ($9,443 million) and
¥754,204 million, respectively.
(4) Commitment line contracts on overdrafts and loans are agreements to lend to customers, up to a prescribed amount, as long as there
is no violation of any condition established in the contracts. The amounts of unused commitments at March 31, 2013 and 2012 were
¥49,706,886 million ($528,740 million) and ¥47,220,313 million, respectively, and the amounts of unused commitments whose origi-
nal contract terms are within 1 year or unconditionally cancelable at any time at March 31, 2013 and 2012 were ¥40,403,061 million
($429,774 million) and ¥39,753,611 million, respectively.
Since many of these commitments are expected to expire without being drawn upon, the total amount of unused commitments does
not necessarily represent actual future cash flow requirements. Many of these commitments include clauses under which SMBC and
other consolidated subsidiaries can reject an application from customers or reduce the contract amounts in the event that economic
conditions change, SMBC and other consolidated subsidiaries need to secure claims, or other events occur. In addition, SMBC and other
consolidated subsidiaries may request the customers to pledge collateral such as premises and securities at the time of the contracts, and
take necessary measures such as monitoring customers’ financial positions, revising contracts when such need arises and securing claims
after the contracts are made.
6. Other Assets
Other assets at March 31, 2013 and 2012 consisted of the following:
March 31
Prepaid expenses ..................................................................................................
Accrued income ...................................................................................................
Deferred assets .....................................................................................................
Financial derivatives* ..........................................................................................
Other ..................................................................................................................
* Referred to in Note 31
7. Tangible Fixed Assets
Tangible fixed assets at March 31, 2013 and 2012 consisted of the following:
Millions of yen
2013
¥ 38,273
290,923
819,984
785,820
2,432,633
¥4,367,634
2012
¥ 35,779
259,380
779,599
1,264,676
2,283,320
¥4,622,756
Millions of
U.S. dollars
2013
$ 407
3,095
8,722
8,359
25,876
$46,459
Millions of yen
March 31
Assets for rent*1 ...................................................................................................
Buildings ............................................................................................................
Land*2 .................................................................................................................
Lease assets ..........................................................................................................
Construction in progress ......................................................................................
Other tangible fixed assets ...................................................................................
Total ....................................................................................................................
Accumulated depreciation ...................................................................................
*1 “Assets for rent,” which was included in “Buildings,” “Land” and “Other tangible fixed assets” in the previous fiscal year, has been separately presented for the fiscal year ended March
2012
¥ 298,167
297,067
462,428
9,063
12,585
101,210
¥1,180,522
¥ 750,082
2013
¥1,102,755
298,620
455,420
9,065
20,123
97,786
¥1,983,772
¥ 857,513
31, 2013, since its materiality has been increased. To reflect this change in presentation, the consolidated financial statements for the previous fiscal year have been reclassified.
As a result, ¥64,137 million, which was included in “Buildings,” ¥92,751 million, which was included in “Land,” and ¥141,278 million, which was included in “Other tangible
fixed assets” in the consolidated balance sheets for the previous fiscal year have been reclassified as “Assets for rent” of ¥298,167 million.
*2 Includes land revaluation excess referred to in Note 15.
83
Millions of
U.S. dollars
2013
$11,730
3,176
4,844
96
214
1,040
$21,102
$ 9,122
SMFGNotes to Consolidated Financial StatementsSMFG 2013 8. Intangible Fixed Assets
Intangible fixed assets at March 31, 2013 and 2012 consisted of the following:
March 31
Software ..............................................................................................................
Goodwill .............................................................................................................
Lease assets ..........................................................................................................
Other intangible fixed assets ................................................................................
9. Assets Pledged as Collateral
Assets pledged as collateral at March 31, 2013 and 2012 consisted of the following:
March 31
Assets pledged as collateral:
Millions of yen
2013
¥296,770
385,625
104
108,359
¥790,860
2012
¥282,797
397,537
200
119,237
¥799,773
Millions of yen
2013
2012
Cash and due from banks and Deposits with banks ..........................................
Call loans and bills bought ..............................................................................
Monetary claims bought ..................................................................................
Trading assets ..................................................................................................
Securities .........................................................................................................
Loans and bills discounted ...............................................................................
Lease receivables and investment assets ............................................................
Tangible fixed assets ........................................................................................
Other assets (installment account receivable, etc.) ............................................
Liabilities corresponding to assets pledged as collateral:
Deposits ..........................................................................................................
Call money and bills sold .................................................................................
Payables under repurchase agreements .............................................................
Payables under securities lending transactions ..................................................
Trading liabilities ............................................................................................
Borrowed money ..............................................................................................
Other liabilities ...............................................................................................
Acceptances and guarantees .............................................................................
¥ 207,675
496,342
1,744
2,528,418
5,343,900
1,649,598
5,463
12,496
790
20,968
1,045,000
2,067,392
3,520,709
502,841
1,202,622
41,407
125,009
¥ 294,382
490,255
7,096
3,715,510
7,281,341
2,572,382
7,740
14,336
4,412
19,144
825,000
1,676,902
5,180,034
513,941
4,312,097
10,149
109,212
Millions of
U.S. dollars
2013
$3,157
4,102
1
1,153
$8,413
Millions of
U.S. dollars
2013
$ 2,209
5,280
19
26,895
56,844
17,547
58
133
8
223
11,116
21,991
37,450
5,349
12,792
440
1,330
In addition to the assets presented above, the following assets were pledged as collateral for cash settlements, variation margins of futures
market transactions and certain other purposes at March 31, 2013 and 2012:
March 31
Cash and due from banks and Deposits with banks ..............................................
Trading assets ......................................................................................................
Securities .............................................................................................................
Loans and bills discounted ...................................................................................
2013
¥ 17,766
28,128
24,871,082
735,230
2012
¥ 23,993
86,879
24,367,992
—
Millions of yen
Millions of
U.S. dollars
2013
$ 189
299
264,558
7,821
Moreover, other assets included surety deposits, variation margins of futures market transactions, collateral money deposited for financial
instruments, and other variation margins, and the amount of at March 31, 2013 and 2012 is as follows.
March 31
Surety deposits ....................................................................................................
Variation margins of futures market transactions .................................................
Collateral money deposited for financial instruments ...........................................
Other variation margins.......................................................................................
2013
¥120,705
17,507
255,863
2,414
2012
¥124,516
17,906
—
66,197
Millions of yen
Millions of
U.S. dollars
2013
$1,284
186
2,722
26
84
SMFGNotes to Consolidated Financial StatementsSMFG 2013
10. Deposits
Deposits at March 31, 2013 and 2012 consisted of the following:
March 31
Current deposits ..................................................................................................
Ordinary deposits ................................................................................................
Savings deposits ...................................................................................................
Deposits at notice ................................................................................................
Time deposits ......................................................................................................
Negotiable certificates of deposit .........................................................................
Other deposits .....................................................................................................
11. Trading Liabilities
Trading liabilities at March 31, 2013 and 2012 consisted of the following:
March 31
Trading securities sold for short sales ...................................................................
Derivatives of trading securities ...........................................................................
Derivatives of securities related to trading transactions ........................................
Trading-related financial derivatives ....................................................................
Millions of yen
2013
¥ 8,232,048
42,424,870
704,081
6,106,278
27,687,948
11,755,654
3,926,583
¥100,837,465
2012
¥ 7,685,782
40,474,217
690,036
4,497,785
26,866,418
8,593,638
3,914,321
¥92,722,199
Millions of yen
2013
¥1,910,129
11,727
29,396
4,168,379
¥6,119,631
2012
¥2,172,857
7,453
17,455
4,050,294
¥6,248,061
Millions of
U.S. dollars
2013
$ 87,566
451,280
7,489
64,953
294,521
125,047
41,768
$1,072,625
Millions of
U.S. dollars
2013
$20,318
125
313
44,340
$65,096
12. Borrowed Money
Borrowed money at March 31, 2013 and 2012 consisted of the following:
March 31
Borrowed money*2 ...................................................... ¥4,979,460
2013
2012
¥8,839,648
Millions of yen
Millions of
U.S. dollars
2013
$52,967
Average
interest rate*1
2013
0.73%
Due
Jan. 2013–Perpetual
*1 Average interest rate represents the weighted average interest rate based on the balances and rates at respective year-end of SMBC and other consolidated subsidiaries.
*2 Includes subordinated borrowings of ¥314,450 million ($3,345 million) and ¥374,250 million at March 31, 2013 and 2012, respectively.
The repayment schedule over the next 5 years on borrowed money at March 31, 2013 was as follows:
March 31
Within 1 year .....................................................................................................................
After 1 year through 2 years ...............................................................................................
After 2 years through 3 years ..............................................................................................
After 3 years through 4 years ..............................................................................................
After 4 years through 5 years ..............................................................................................
Millions of yen
2013
¥2,845,802
541,508
406,249
157,702
118,887
Millions of U.S. dollars
2013
$30,271
5,760
4,321
1,678
1,265
85
SMFGNotes to Consolidated Financial StatementsSMFG 2013
13. Bonds
Bonds at March 31, 2013 and 2012 consisted of the following:
March 31
Issuer
Description
SMBC:
Short-term bonds, payable in Yen ..........................
Straight bonds, payable in Yen ..............................
Straight bonds, payable in Euroyen ........................
Straight bonds, payable in U.S. dollars ..................
Straight bonds, payable in British pound sterling .....
Straight bonds, payable in Australian dollars ............
Subordinated bonds, payable in Yen ......................
Subordinated bonds, payable in Euroyen ................
Subordinated bonds, payable in U.S. dollars ............
Subordinated bonds, payable in Euro .....................
Other consolidated subsidiaries:
Straight bonds, payable in Yen ..............................
Straight bonds, payable in U.S. dollars ..................
Straight bonds, payable in Renminbi .....................
Subordinated bonds, payable in Yen ......................
Short-term bonds, payable in Yen ..........................
Millions of yen*1
2013
2012
Millions of
U.S. dollars
2013
Interest rate*2
(%)
2013
Due
¥ 20,000
[20,000]
1,070,929
[187,091]
12,900
1,138,357
($12,108,898 thousand)
[155,095]
35,772
(£250,000 thousand)
116,439
(A$1,189,854 thousand)
1,339,476
[109,491]
229,400
169,904
($1,807,298 thousand)
129,375
(€1,072,231 thousand)
349,386
[58,950]
—
16,665
(RMB¥1,100,000 thousand)
[3,030]
142,200
1,106,300
[1,106,300]
¥5,877,106
¥ 19,999
[19,999]
1,233,795
[216,897]
15,900
574,424
($6,994,089 thousand)
$ 213
0.08
Apr. 2013
11,392
0.09571–1.36
Apr. 2013–Sep. 2024
137
12,109
0.00–1.57789
0.9–3.95
Mar. 2036–Feb. 2037
Jul. 2013–Jan. 2023
—
381
1.05688
Mar. 2016
82,799
(A$969,891 thousand)
[46,096]
1,586,411
[39,999]
346,494
209,352
($2,549,037 thousand)
[61,341]
117,717
(€1,072,787 thousand)
265,916
[49,700]
60,496
($500,000 thousand)
[60,496]
6,520
(RMB¥500,000 thousand)
1,239
3.29–4.28
Dec. 2014–Dec. 2016
14,248
0.87–2.8
Aug. 2013–Dec. 2026
2,440
1,807
0.71–2.97
4.85–5.625
Jun. 2018–Perpetual
Mar. 2022–Perpetual
1,376
4–4.375
Nov. 2020–Perpetual
3,716
0.23446–16.6
Apr. 2013–Mar. 2043
—
177
—
—
2.5–4
Sep. 2013–Aug. 2015
142,099
929,388
[929,388]
¥5,591,316
1,513
11,768
$62,516
2.19–4.5
0.1–0.43
Aug. 2018–Perpetual
Apr. 2013–Dec. 2013
*1 Figures in ( ) are the balances in the original currency of the foreign currency denominated bonds, and figures in { } are the amounts to be redeemed within 1 year.
*2 Interest rates indicate nominal interest rates which are applied at the consolidated balance sheet dates. Therefore, they may differ from actual interest rates.
The redemption schedule over the next 5 years on bonds at March 31, 2013 was as follows:
March 31
Within 1 year ....................................................................................................................
After 1 year through 2 years ...............................................................................................
After 2 years through 3 years ..............................................................................................
After 3 years through 4 years ..............................................................................................
After 4 years through 5 years ..............................................................................................
Millions of yen
2013
¥1,639,996
470,638
876,578
566,214
401,556
Millions of U.S. dollars
2013
$17,445
5,006
9,324
6,023
4,271
86
SMFGNotes to Consolidated Financial StatementsSMFG 2013 14. Other Liabilities
Other liabilities at March 31, 2013 and 2012 consisted of the following:
March 31
Accrued expenses .................................................................................................
Unearned income .................................................................................................
Income taxes payable ...........................................................................................
Financial derivatives*1 .........................................................................................
Lease liabilities*2 .................................................................................................
Other ..................................................................................................................
Millions of yen
2013
¥ 155,892
148,938
206,968
932,404
97,954
2,447,635
¥3,989,794
2012
¥ 137,287
154,480
59,789
895,750
54,169
3,461,483
¥4,762,961
Millions of
U.S. dollars
2013
$ 1,658
1,584
2,202
9,918
1,042
26,036
$42,440
*1 Referred to in Note 31
*2 Average interest rate on lease liabilities for the year ended March 31, 2013 was 4.25%. Non-transfer ownership finance lease with the lease term commenced before April 1, 2008 is
excluded from calculations of average interest rate.
The repayment schedule over the next 5 years on lease liabilities at March 31, 2013 was as follows:
March 31
Within 1 year .....................................................................................................................
After 1 year through 2 years ...............................................................................................
After 2 years through 3 years ..............................................................................................
After 3 years through 4 years ..............................................................................................
After 4 years through 5 years ..............................................................................................
Millions of yen
2013
¥19,801
16,224
13,440
9,865
8,310
Millions of U.S. dollars
2013
$211
173
143
105
88
15. Land Revaluation Excess
SMBC and another consolidated subsidiary revaluated their own land
for business activities in accordance with “Act on Revaluation of
Land” (the “Act”) (Act No. 34, effective March 31, 1998) and “Act
for Partial Revision of Act on Revaluation of Land” (Act No. 19,
effective March 31, 2001). The income taxes corresponding to the
net unrealized gains are reported in “Liabilities” as “Deferred tax
liabilities for land revaluation,” and the net unrealized gains, net
of deferred taxes, are reported as “Land revaluation excess” in “Net
assets.”
A certain affiliate revaluated its own land for business activities in
accordance with the Act. The net unrealized gains, net of deferred
taxes, are reported as “Land revaluation excess” in “Net assets.”
Date of the revaluation
SMBC:
March 31, 1998 and March 31, 2002
Another consolidated subsidiary and an affiliate:
March 31, 1999 and March 31, 2002
Method of revaluation (stipulated in Article 3-3 of the Act)
SMBC:
Fair values were determined by applying appropriate
adjustments for land shape and timing of appraisal to the
values stipulated in Article 2-3, 2-4 or 2-5 of “Order for
Enforcement of Act on Revaluation of Land” (Cabinet Order
No. 119 of March 31, 1998).
Another consolidated subsidiary and an affiliate:
Fair values were determined based on the values stipulated
in Articles 2-3 and 2-5 of “Order for Enforcement of Act on
Revaluation of Land” (Cabinet Order No. 119 of March 31,
1998).
16. Capital Stock
Capital stock consists of common stock and preferred stock. Common stock and preferred stock at March 31, 2013 and 2012 were as follows:
Number of shares
2013
2012
March 31
Common stock ........................................................................................ 3,000,000,000 1,414,055,625
—
Preferred stock (Type 5) ...........................................................................
—
Preferred stock (Type 6) ...........................................................................
—
Preferred stock (Type 7) ...........................................................................
—
Preferred stock (Type 8) ...........................................................................
Preferred stock (Type 9) ...........................................................................
—
Total ........................................................................................................ 3,000,634,001 1,414,055,625
167,000
70,001
167,000
115,000
115,000
Authorized
Issued
Authorized
Issued
3,000,000,000 1,414,055,625
—
—
—
—
—
3,000,634,001 1,414,055,625
167,000
70,001
167,000
115,000
115,000
87
SMFGNotes to Consolidated Financial StatementsSMFG 2013
17. Fees and Commissions
Fees and commissions for the fiscal years ended March 31, 2013 and 2012 consisted of the following:
Year ended March 31
Fees and commissions:
Deposits and loans ...........................................................................................
Remittances and transfers ................................................................................
Securities-related business ................................................................................
Agency ............................................................................................................
Safe deposits ....................................................................................................
Guarantees .......................................................................................................
Credit card business .........................................................................................
Investment trusts .............................................................................................
Other ...............................................................................................................
Fees and commissions payments:
Remittances and transfers ................................................................................
Other ...............................................................................................................
Millions of yen
2013
2012
¥ 112,723
130,742
91,999
18,172
5,991
79,376
225,444
162,951
212,725
¥1,040,126
¥ 44,244
87,712
¥ 131,957
¥ 92,397
126,984
90,350
18,896
6,325
71,066
208,853
142,940
197,865
¥955,680
¥ 33,301
98,797
¥132,099
18. Trading Income
Trading income for the fiscal years ended March 31, 2013 and 2012 consisted of the following:
Year ended March 31
Gains on trading securities ..................................................................................
Gains on securities related to trading transactions ................................................
Gains on trading-related financial derivatives ......................................................
Other ..................................................................................................................
Millions of yen
2013
¥202,087
4,286
—
367
¥206,741
2012
¥114,978
7,634
74,328
1,251
¥198,192
19. Other Operating Income
Other operating income for the fiscal years ended March 31, 2013 and 2012 consisted of the following:
Year ended March 31
Gains on sale of bonds .........................................................................................
Gains on redemption of bonds .............................................................................
Lease-related income ............................................................................................
Gains on foreign exchange transactions ................................................................
Other ..................................................................................................................
Millions of yen
2013
¥ 161,423
114
879,822
125,348
117,068
¥1,283,776
2012
¥ 176,344
119
789,509
23,270
121,322
¥1,110,566
20. Other Operating Expenses
Other operating expenses for the fiscal years ended March 31, 2013 and 2012 consisted of the following:
Year ended March 31
Losses on sale of bonds .........................................................................................
Losses on redemption of bonds .............................................................................
Losses on devaluation of bonds .............................................................................
Bond issuance costs ..............................................................................................
Lease-related expenses ..........................................................................................
Losses on financial derivatives ..............................................................................
Other ..................................................................................................................
Millions of yen
2013
¥ 34,825
6,614
12
3,235
781,211
6,040
128,239
¥960,179
2012
¥ 13,616
5,692
—
2,528
718,104
2,537
138,518
¥880,998
88
Millions of
U.S. dollars
2013
$ 1,199
1,391
979
193
64
844
2,398
1,733
2,263
$11,064
$ 471
933
$ 1,404
Millions of
U.S. dollars
2013
$2,150
46
—
4
$2,199
Millions of
U.S. dollars
2013
$ 1,717
1
9,359
1,333
1,245
$13,656
Millions of
U.S. dollars
2013
$ 370
70
0
34
8,310
64
1,364
$10,214
SMFGNotes to Consolidated Financial StatementsSMFG 2013 21. Other Income
Other income for the fiscal years ended March 31, 2013 and 2012 consisted of the following:
Year ended March 31
Gains on sale of stocks and other securities ..........................................................
Gains on money held in trust ...............................................................................
Equity in gains of affiliates ..................................................................................
Gains on disposal of fixed assets ...........................................................................
Recoveries of written-off claims ...........................................................................
Gains on step acquisitions ...................................................................................
Other ..................................................................................................................
Millions of yen
2013
¥38,412
71
5,309
240
10,436
140
32,168
¥86,780
2012
¥15,654
10
—
2,741
4,800
25,050
27,014
¥75,272
22. Other Expenses
Other expenses for the fiscal years ended March 31, 2013 and 2012 consisted of the following:
Year ended March 31
Write-off of loans.................................................................................................
Losses on sale of stocks and other securities ..........................................................
Losses on devaluation of stocks and other securities ..............................................
Losses on money held in trust ..............................................................................
Losses on sale of delinquent loans .........................................................................
Equity in losses of affiliates ..................................................................................
Losses on disposal of fixed assets ..........................................................................
Losses on impairment of fixed assets* ..................................................................
Other ..................................................................................................................
*Losses on impairment of fixed assets consisted of the following:
Millions of yen
2013
¥133,639
29,440
29,944
1,659
10,532
—
5,721
4,314
67,614
¥282,867
2012
¥ 90,305
11,659
31,875
1,474
25,364
31,122
6,507
3,861
89,008
¥291,179
Millions of
U.S. dollars
2013
$409
1
56
3
111
1
342
$923
Millions of
U.S. dollars
2013
$1,422
313
319
18
112
—
61
46
719
$3,009
Year ended
March 31
Tokyo metropolitan area ........................................ Branches (—)
Area
Purpose of use
2013
Kinki area ............................................................. Branches (5 branches)
Idle assets (34 items)
Other (2 items)
Idle assets (47 items)
Other (2 items)
Type
Land and buildings, etc.
Land and buildings, etc.
Other .................................................................... Branches (—)
Land and buildings, etc.
Idle assets (12 items)
Other (1 item)
Millions of yen
2013
2012
¥ — ¥ 198
1,168
2,523
58
55
393
206
1,630
1,169
2
22
27
—
381
274
—
62
Millions of
U.S. dollars
2013
$—
27
1
2
12
0
—
3
1
At SMBC, a branch, which continuously manages and determines its income and expenses, is the smallest unit of asset group for recognition
and measurement of impairment loss of fixed assets. Assets such as corporate headquarters facilities, training facilities, data and system centers,
and health and recreational facilities which do not produce cash flows that can be attributed to individual assets are treated as corporate assets.
As for idle assets, impairment loss is measured individually. At SMFG and other consolidated subsidiaries, a branch or other group is the small-
est asset grouping unit as well.
SMBC and other consolidated subsidiaries reduced the carrying amounts of long-lived assets of which investments are not expected to be
fully recovered to their recoverable amounts, and recognized the losses as “losses on impairment of fixed assets,” which is included in “Other
expenses.” SMBC reduced the carrying amounts of idle assets, and other consolidated subsidiaries reduced the carrying amounts of their
branches and idle assets. The recoverable amount is calculated using net realizable value which is basically determined by subtracting the
expected disposal cost from the appraisal value based on the Real Estate Appraisal Standard.
89
SMFGNotes to Consolidated Financial StatementsSMFG 2013 23. Other Comprehensive Income
Reclassification adjustment and tax effect of other comprehensive income
Years ended March 31
Net unrealized gains on other securities:
Amount arising during the fiscal year ..............................................................
Reclassification adjustment ..............................................................................
Before adjustment to tax effect .....................................................................
Tax effect .....................................................................................................
Net unrealized gains on other securities .......................................................
Net deferred losses on hedges:
Amount arising during the fiscal year ..............................................................
Reclassification adjustment ..............................................................................
Adjustment on the cost of the assets ................................................................
Before adjustment to tax effect .....................................................................
Tax effect .....................................................................................................
Net deferred losses on hedges .......................................................................
Land revaluation excess:
Amount arising during the fiscal year ..............................................................
Reclassification adjustment ..............................................................................
Before adjustment to tax effect .....................................................................
Tax effect .....................................................................................................
Land revaluation excess ................................................................................
Foreign currency translation adjustments:
Amount arising during the fiscal year ..............................................................
Reclassification adjustment ..............................................................................
Before adjustment to tax effect .....................................................................
Tax effect .....................................................................................................
Foreign currency translation adjustments .....................................................
Share of other comprehensive income of affiliates
Amount arising during the fiscal year ..............................................................
Reclassification adjustment ..............................................................................
Before adjustment to tax effect .....................................................................
Tax effect .....................................................................................................
Share of other comprehensive income of affiliates .........................................
Total other comprehensive income ............................................................
Millions of yen
2013
2012
¥696,090
(78,619)
617,471
(171,793)
445,678
(4,728)
3,658
(260)
(1,329)
253
(1,076)
—
—
—
—
—
99,611
15
99,626
—
99,626
(1,135)
(3,051)
(4,187)
—
(4,187)
¥540,041
¥241,713
(136,762)
104,950
(35,846)
69,103
(26,643)
(7,882)
(16)
(34,543)
11,578
(22,964)
—
—
—
5,613
5,613
(24,429)
1,059
(23,369)
(126)
(23,496)
(7,105)
2,453
(4,651)
—
(4,651)
¥ 23,605
Millions of
U.S. dollars
2013
$7,404
(836)
6,568
(1,827)
4,741
(50)
39
(3)
(14)
3
(11)
—
—
—
—
—
1,060
0
1,060
—
1,060
(12)
(32)
(45)
—
(45)
$5,745
90
SMFGNotes to Consolidated Financial StatementsSMFG 2013 24. Deferred Tax Assets and Liabilities
(1) Significant components of deferred tax assets and liabilities at March 31, 2013 and 2012 were as follows:
March 31
Deferred tax assets:
Millions of yen
2013
2012
Reserve for possible loan losses ...............................................................
Net operating loss carryforwards ............................................................
Write-off of securities ............................................................................
Write-off of loans ...................................................................................
Reserve for employee retirement benefits ...............................................
Net unrealized gains on other securities .................................................
Net deferred losses on hedges .................................................................
Depreciation ..........................................................................................
Other .....................................................................................................
Subtotal .................................................................................................
Valuation allowance ...............................................................................
Total deferred tax assets .........................................................................
Deferred tax liabilities:
Net unrealized losses on other securities .................................................
Gains on securities contributed to employee retirement benefits trust ....
Leveraged lease ......................................................................................
Securities returned from employee retirement benefits trust ...................
Undistributed earnings of subsidiaries ...................................................
Other .....................................................................................................
Total deferred tax liabilities ...................................................................
Net deferred tax assets ...............................................................................
¥ 483,074
364,406
211,445
127,601
65,743
20,182
18,667
15,346
207,499
1,513,968
(735,017)
778,950
(313,945)
(38,524)
(18,725)
(10,708)
(9,232)
(81,676)
(472,812)
¥ 306,137
¥ 506,971
383,270
224,012
115,438
68,402
39,485
18,425
12,554
212,036
1,580,597
(942,722)
637,874
(146,715)
(38,524)
(19,692)
(9,298)
(5,684)
(67,776)
(287,692)
¥ 350,182
Millions of
U.S. dollars
2013
$ 5,139
3,876
2,249
1,357
699
215
199
163
2,207
16,104
(7,818)
8,286
(3,339)
(410)
(199)
(114)
(98)
(869)
(5,029)
$ 3,256
(2) SMFG and its domestic consolidated subsidiaries are subject to Japanese national and local income taxes, which, in the aggregate, would
result in an effective statutory tax rate of approximately 38.01 and 40.69% for the years ended March 31, 2013 and 2012, respectively.
A reconciliation of the effective income tax rate reflected in the accompanying consolidated statements of income to the statutory tax
rate for the years ended March 31, 2013 and 2012 was as follows:
March 31
Statutory tax rate ...............................................................................................................................
Valuation allowance .......................................................................................................................
Difference in the effective statutory tax rate between SMFG and
consolidated overseas subsidiaries .................................................................................................
Dividends exempted for income tax purposes .................................................................................
Gains on step acquisitions ..............................................................................................................
Equity in (gains) losses of affiliates .................................................................................................
Effects of changes in the corporate income tax rate .........................................................................
Other .............................................................................................................................................
Effective income tax rate ....................................................................................................................
(3.61)
(0.99)
—
(0.19)
1.19
(0.63)
13.72%
—
(1.15)
(1.07)
1.33
4.42
0.21
32.67%
2013
38.01%
(20.06)
2012
40.69%
(11.76)
91
SMFGNotes to Consolidated Financial StatementsSMFG 2013 25. Changes in Net Assets
(1) Type and number of shares issued and treasury stock are as follows:
Year ended March 31, 2013
Shares issued
March 31,
2012
Number of shares
Increase
Decrease
March 31,
2013
Common stock ................................................... 1,414,055,625
Total .............................................................. 1,414,055,625
—
—
—
—
1,414,055,625
1,414,055,625
Treasury stock
Common stock ...................................................
Total ..............................................................
62,939,559
62,939,559
88,729*1
88,729
2,848,912*2
2,848,912
60,179,376
60,179,376
*1 Increase of 88,729 shares in the number of treasury common stock due to increase of 85,533 shares through purchase of fractional shares, increase of 396 shares through
acquisition of fractional shares incurred as a result of a share exchange associated with SMBC Consumer Finance Co., Ltd. (formerly Promise Co., Ltd.) becoming a wholly-
owned subsidiary and increase of 2,800 shares through acquisition of treasury stock associated with dissenting shareholders’ share purchase demand against such share
exchange.
*2 Decrease of 2,848,912 shares in number of treasury common stock due to sale of fractional shares, reduction of 8,836 shares through exercise of stock options and reduction
of 2,840,076 shares through the issuance of treasury stock as a result of a share exchange associated with SMBC Consumer Finance Co., Ltd. (formerly Promise Co., Ltd.)
becoming a wholly-owned subsidiary.
Year ended March 31, 2012
Shares issued
March 31,
2011
Number of shares
Increase
Decrease
March 31,
2012
Common stock ................................................... 1,414,055,625
70,001
Preferred stock (First series Type 6) ....................
Total .............................................................. 1,414,125,626
—
—
—
—
70,001*1
70,001
1,414,055,625
—
1,414,055,625
Treasury stock
Common stock ...................................................
Preferred stock (First series Type 6) ....................
Total ..............................................................
32,581,914
—
32,581,914
45,686,368*2
70,001*1
45,756,369
15,328,723*2
70,001*1
15,398,724
62,939,559
—
62,939,559
*1 Increase in number of treasury stock of the First Series Type 6 Preferred Stock:
• 70,001 shares due to acquisition of the treasury stock that was executed on April 1, 2011 in accordance with the provision of Article 18 of the Articles of Incorporation of
SMFG
Decrease in number of both treasury stock and shares issued of the First Series Type 6 Preferred Stock:
• 70,001 shares respectively due to cancellation of those shares that was executed on April 1, 2011
*2 Increase in number of treasury common shares issued:
• 45,686,368 shares due to purchase of fractional shares and also acquisition of SMFG shares through market purchases in accordance with the provision of Article 8 of the
Articles of Incorporation of SMFG that were subsequently delivered to the shareholders of SMBC Consumer Finance Co., Ltd. (formerly Promise Co., Ltd.) in consider-
ation for a share exchange
Decrease in number of treasury common shares issued:
• 15,328,723 shares due to reduction of 7,363 shares through sale of fractional shares and exercise of stock options and reduction of 15,321,360 shares through the alloca-
tion of SMFG shares held by SMFG Card & Credit, Inc., a consolidated subsidiary of SMFG for the purpose of acquiring 100% stake of Cedyna Financial Corporation, to
the shareholders of Cedyna Financial Corporation on May 1, 2011, and sale of SMFG shares by consolidated subsidiaries
92
SMFGNotes to Consolidated Financial StatementsSMFG 2013 Effective date
June 29, 2011
June 29, 2011
Effective date
(2) Information on stock acquisition rights is as follows:
Year ended March 31, 2013
SMFG ..............................
Consolidated subsidiaries ...
Total ................................
Year ended March 31, 2012
SMFG ..............................
Consolidated subsidiary ...
Total ................................
Detail of stock
acquisition rights
Stock options
—
Type of
shares
—
—
March 31,
2012
—
—
Number of shares
Increase
—
—
Decrease
—
—
March 31,
2013
—
—
Detail of stock
acquisition rights
Stock options
—
Type of
shares
—
—
March 31,
2011
—
—
Number of shares
Increase
—
—
Decrease
—
—
March 31,
2012
—
—
Millions of
U.S. dollars
March 31,
2013
$12
1
$13
Millions of yen
March 31,
2013
¥1,140
120
¥1,260
Millions of yen
March 31,
2012
¥598
94
¥692
(3) Information on dividends is as follows:
(a) Dividends paid in the fiscal year ended March 31, 2012
Type of shares
Common stock ......................................................
Preferred stock (First series Type 6) ........................
Aggregate amount
of dividends
¥70,514
3,097
Millions of yen, except per share amount
Cash dividends
per share
¥ 50
44,250
Record date
March 31, 2011
March 31, 2011
Date of resolution: Ordinary general meeting of shareholders held on June 29, 2011
Type of shares
Common stock ......................................................
Aggregate amount
of dividends
¥70,514
Date of resolution: Meeting of the Board of Directors held on November 14, 2011
Millions of yen, except per share amount
Cash dividends
per share
¥50
Record date
September 30, 2011 December 2, 2011
(b) Dividends paid in the fiscal year ended March 31, 2013
Type of shares
Common stock ......................................................
Aggregate amount
of dividends
¥68,230
Millions of yen, except per share amount
Cash dividends
per share
¥50
Record date
March 31, 2012
Effective date
June 28, 2012
Date of resolution: Ordinary general meeting of shareholders held on June 28, 2012
Type of shares
Common stock ......................................................
Aggregate amount
of dividends
¥70,513
Date of resolution: Meeting of the Board of Directors held on November 14, 2012
Millions of yen, except per share amount
Cash dividends
per share
¥50
Record date
September 30, 2012 December 4, 2012
Effective date
(c) Dividends to be paid in the fiscal year ending March 31, 2014
Type of shares
Common stock ......................................................
Aggregate amount
of dividends
¥98,713
Date of resolution: Ordinary general meeting of shareholders held on June 27, 2013
* Cash dividends per share of ¥70 includes ¥10 of the commemorative dividend.
Millions of yen, except per share amount
Source
of dividends
Retained earnings
Cash dividends
per share
¥70*
Record date
Effective date
March 31, 2013 June 27, 2013
93
SMFGNotes to Consolidated Financial StatementsSMFG 2013
26. Cash Flows
Fiscal year ended March 31, 2013
8 companies including SMBC Aviation Capital Limited were newly consolidated following the acquisition of shares by SMBC and Sumitomo
Mitsui Finance and Leasing Company, Limited. Major assets and liabilities as of the beginning of consolidation and a summary of share
acquisition cost and net expenses for the acquisition are as follows:
Assets ...................................................................................................................................
[Tangible fixed assets] .......................................................................................................
Liabilities .............................................................................................................................
[Borrowed money] ............................................................................................................
Minority interests .................................................................................................................
Goodwill ..............................................................................................................................
Millions of yen
¥668,091
568,479
(571,377)
(478,581)
(9,453)
7,484
Stock acquisition cost of the 8 companies .............................................................................
Cash and cash equivalents of the 8 companies .......................................................................
94,745
—
Difference: Expenses required for acquisition of the 8 companies ..........................................
¥ 94,745
Millions of U.S. dollars
$7,107
6,047
(6,078)
(5,091)
(101)
80
1,008
—
$1,008
Fiscal year ended March 31, 2012
7 companies including SMBC Consumer Finance Co., Ltd. (formerly Promise Co., Ltd.) were newly consolidated following a tender offer by
SMBC for shares and a subscription by SMFG for new shares by way of a third-party allotment. Major assets and liabilities as of the begin-
ning of consolidation and a summary of share acquisition cost and net expenses for the acquisition are as follows:
Millions of yen
¥1,671,681
795,148
564,528
(1,511,980)
(300,884)
(367,220)
(564,528)
(56)
(3,576)
57,300
Assets ...................................................................................................................................
[Loans and bills discounted] ..............................................................................................
[Customers’ liabilities for acceptances and guarantees] ......................................................
Liabilities .............................................................................................................................
[Borrowed money] ............................................................................................................
[Reserve for losses on interest repayment] .........................................................................
[Acceptances and guarantees] ............................................................................................
Stock acquisition rights ........................................................................................................
Minority interests .................................................................................................................
Goodwill ..............................................................................................................................
Stock acquisition cost of the 7 companies .............................................................................
Cash and cash equivalents of the 7 companies .......................................................................
Fair value of common stock of SMBC Consumer Finance Co., Ltd. owned before business
combination .......................................................................................................................
Fair value of common stock of SMBC Consumer Finance Co., Ltd. additionally acquired
through subscription for shares issued by way of third-party allotment ...............................
213,369
(4,300)
(21,699)
(119,999)
Difference: Expenses required for acquisition of the 7 companies ..........................................
¥ 67,369
94
SMFGNotes to Consolidated Financial StatementsSMFG 2013 27. Employee Retirement Benefits
(1) Outline of employee retirement benefits
Consolidated subsidiaries in Japan have contributory funded defined-benefit pension plans such as employee pension plans and lump-
sum severance indemnity plans. Certain domestic consolidated subsidiaries in Japan adopt the defined-contribution pension plan and
have a general type of employee pension plans. They may grant additional benefits when employees retire.
Some overseas consolidated subsidiaries adopt defined-benefit pension plans and defined-contribution pension plans. SMBC and some
consolidated subsidiaries in Japan contributed some of their marketable equity securities to employee retirement benefits trusts.
(2) Projected benefit obligation
Millions of yen
March 31
Projected benefit obligation
Plan assets
Unfunded projected benefit obligation
Unrecognized net actuarial gain or loss
Unrecognized prior service cost
Net amount recorded on the consolidated
balance sheet
Prepaid pension cost
Reserve for employee retirement benefits
(A) ...................................
(B) ...................................
(C)=(A)+(B).....................
(D) ..................................
(E) ...................................
2013
¥(1,117,085)
1,036,130
(80,955)
262,349
(1,254)
(F)=(C)+(D)+(E) ..............
(G) ..................................
(F)–(G) ...........................
180,139
224,719
¥ (44,579)
Note: Some consolidated subsidiaries adopt the simple method in calculating the projected benefit obligation.
2012
¥(990,449)
902,254
(88,194)
261,128
(6,624)
166,309
212,221
¥ (45,911)
(3) Pension expenses
Millions of yen
Year ended March 31
Service cost ................................................................................................
Interest cost on projected benefit obligation ..............................................
Expected return on plan assets ...................................................................
Amortization of unrecognized net actuarial gain or loss .............................
Amortization of unrecognized prior service cost .........................................
Other (nonrecurring additional retirement allowance paid and other) ........
Total ..........................................................................................................
2013
¥25,350
23,988
(27,788)
29,296
(4,773)
6,201
¥52,274
Notes: 1. Pension expenses of consolidated subsidiaries which adopt the simple method are included in “Service cost.”
2. Premium paid to defined-contribution pension is included in “Other.”
2012
¥24,646
24,013
(27,169)
38,736
(6,542)
5,136
¥58,820
(4) Assumptions
Millions of
U.S. dollars
2013
$(11,883)
11,021
(861)
2,791
(13)
1,916
2,390
$ (474)
Millions of
U.S. dollars
2013
$270
255
(296)
312
(51)
66
$556
The principal assumptions used in determining benefit obligation and pension expenses at or for the fiscal years ended March 31, 2013
and 2012 were as follows:
Year ended March 31
Discount rate .............................................................. Domestic consolidated subsidiaries
Overseas consolidated subsidiaries
Expected rate of return on plan assets ......................... Domestic consolidated subsidiaries
Overseas consolidated subsidiaries
2012
1.15% to 2.5%
4.7% to 7.0%
0% to 4.1%
3.8% to 5.5%
0.9% to 2.0%
4.1% to 6.0%
0% to 4.3%
3.8% to 4.5%
2013
Estimated amounts of retirement benefits are allocated to each period by the straight-line method.
Unrecognized prior service cost is amortized using the straight-line method within the employees’ average remaining service period
from the fiscal year of its incurrence, over mainly 9 years for the fiscal years ended March 31, 2013 and 2012.
Unrecognized net actuarial gain or loss is amortized using the straight-line method within the employees’ average remaining service
period, commencing from the next fiscal year of incurrence, over mainly 9 years for the fiscal years ended March 31, 2013 and 2012.
95
SMFGNotes to Consolidated Financial StatementsSMFG 2013
28. Lease Transactions
(1) Financing leases
(a) Lessee side
(i) Lease assets
Tangible fixed assets mainly consisted of branches, data centers and equipment. Intangible fixed assets are software.
(ii) Depreciation method of lease assets
Depreciation method of lease assets is reported in Note 2. (5) Depreciation.
(b) Lessor side
(i) Breakdown of lease investment assets
March 31
Lease receivables ...................................................................................
Residual value ......................................................................................
Unearned interest income .....................................................................
Total .....................................................................................................
2013
¥1,123,573
88,530
(164,413)
¥1,047,691
2012
¥1,172,940
89,463
(179,638)
¥1,082,766
Millions of yen
(ii) The scheduled collections of lease receivables and investment assets are as follows:
Lease payments receivable related to lease receivables
Millions of yen
March 31
Within 1 year .......................................................................................
More than 1 year to 2 years ...................................................................
More than 2 years to 3 years .................................................................
More than 3 years to 4 years .................................................................
More than 4 years to 5 years .................................................................
More than 5 years .................................................................................
Total .....................................................................................................
2013
¥244,425
153,383
101,441
73,707
37,667
111,437
¥722,062
2012
¥229,520
172,714
95,022
60,591
46,063
93,592
¥697,504
Lease payments receivable related to investment assets
Millions of yen
March 31
Within 1 year .......................................................................................
More than 1 year to 2 years ...................................................................
More than 2 years to 3 years .................................................................
More than 3 years to 4 years .................................................................
More than 4 years to 5 years .................................................................
More than 5 years .................................................................................
Total .....................................................................................................
2013
¥ 355,846
246,504
186,131
127,014
73,846
134,230
¥1,123,573
2012
¥ 365,967
283,506
185,126
126,973
73,022
138,342
¥1,172,940
Millions of
U.S. dollars
2013
$11,952
942
(1,749)
$11,144
Millions of
U.S. dollars
2013
$2,600
1,632
1,079
784
401
1,185
$7,681
Millions of
U.S. dollars
2013
$ 3,785
2,622
1,980
1,351
786
1,428
$11,952
(iii) Non-transfer ownership finance leases, which commenced in fiscal years beginning before April 1, 2008, are valued at their
appropriate book value, net of accumulated depreciation, as of March 31, 2008, and recorded as the beginning balance of fiscal 2008
of “Lease receivables and investment assets.” Moreover, interest on such non-transfer ownership finance leases during the remaining
term of the leases is allocated over the lease term using the straight-line method. As a result of this accounting treatment, “Income
before income taxes and minority interests” for the fiscal year ended March 31, 2013 and 2012 were ¥5,940 million ($63 million)
and ¥8,849 million, respectively, more than it would have been if such transactions had been treated in a similar way to sales of the
underlying assets.
(2) Operating leases
(a) Lessee side
Future minimum lease payments on operating leases which were not cancelable at March 31, 2013 and 2012 were as follows:
March 31
Due within 1 year .................................................................................
Due after 1 year ....................................................................................
Total .....................................................................................................
2013
¥ 45,180
286,516
¥331,697
2012
¥ 42,247
294,411
¥336,658
Millions of yen
Millions of
U.S. dollars
2013
$ 481
3,048
$3,528
96
SMFGNotes to Consolidated Financial StatementsSMFG 2013 (b) Lessor side
Future minimum lease payments on operating leases which were not cancelable at March 31, 2013 and 2012 were as follows:
March 31
Due within 1 year .................................................................................
Due after 1 year ....................................................................................
Total .....................................................................................................
2013
¥113,679
467,799
¥581,478
2012
¥ 35,329
158,814
¥194,143
Millions of yen
Millions of
U.S. dollars
2013
$1,209
4,976
$6,185
Future lease payments receivable on operating leases which were not cancelable at March 31, 2013 and 2012 amounting to ¥0
million ($0 million) and ¥0 million, respectively, on the lessor side were pledged as collateral for borrowings.
29. Financial Instruments
(1) Status of financial instruments
(a) Policies on financial instruments
The Group conducts banking and other financial services
such as leasing, securities, consumer finance, and system
development and information processing. Its banking
business includes deposit taking, lending, securities trad-
ing and investment, remittance, foreign exchange, bond
subscription agent, trust business, and over-the-counter
sales of securities investment trusts and insurance products.
These services entail holding of financial assets such as
loans and bills discounted, bonds, and stocks. Meanwhile,
SMFG raises funds through deposit taking, borrowing,
bond offering, etc. Furthermore, it undertakes derivative
transactions to meet customers’ hedging needs, to control
market risk associated with deposit taking and lending
(“ALM purposes”), and to make profit on short-term
fluctuations in interest rates, foreign exchange rates,
etc. (“trading purposes”). At SMBC, SMFG’s major
consolidated subsidiary, derivative transactions for ALM
purposes are undertaken by the Treasury Department and
the International Treasury Department of the Treasury
Unit, while derivative transactions for trading purposes
are undertaken by the Trading Department of the Treasury
Unit.
(b) Details of financial instruments and associated risks
(i) Financial assets
The main financial assets held by SMFG include loans
to foreign and domestic companies and domestic
individuals, and securities such as bonds (government
and corporate bonds) and stocks (foreign and domestic
stocks), etc. Bonds such as government bonds are held
for both trading and ALM purposes, and certain bonds
are held as held-to-maturity securities. Stocks are held
mainly for strategic purposes. These assets expose
SMFG to credit risk, market risk and liquidity risk.
Credit risk is the risk of loss arising from nonperfor-
mance of obligations by the borrower or issuer due to
factors such as deterioration in the borrower’s/issuer’s
financial conditions. Market risk is the risk stemming
from fluctuations in interest rates, exchange rates, or
share prices. Liquidity risk is the risk arising from
difficulty executing transactions in desired quantities
at appropriate prices due to low market liquidity. These
risks are properly monitored and managed based on
“(c) Risk management framework for financial instru-
ments” below.
(ii) Financial liabilities
Financial liabilities of SMFG include borrowed money
and bonds, etc. in addition to deposits. Deposits mainly
comprise deposits of domestic and foreign companies
and domestic individuals. Borrowed money and bonds
include subordinated borrowings and subordinated
bonds. Also, financial liabilities, like financial assets,
expose SMFG to not only market risk but also funding
liquidity risk: the risk of SMFG not being able to
raise funds due to market turmoil, deterioration in
its creditworthiness or other factors. These risks are
properly monitored and managed based on “(c) Risk
management framework for financial instruments”
below.
(iii) Derivative transactions
Derivatives handled by SMFG include foreign exchange
futures; futures, forwards, swaps and options related to
interest rates, currencies, equities, bonds and commodi-
ties; and credit and weather derivatives.
Major risks associated with derivatives include
market risk, liquidity risk, and credit risk arising
from nonperformance of contractual obligations due to
deterioration in the counterparty’s financial conditions.
These risks are properly monitored and managed based
on “(c) Risk management framework for financial
instruments” below.
Hedge accounting is applied to derivative transac-
tions executed for ALM purposes, as necessary. Hedging
instruments, hedged items, hedging policy and the
method to assess the effectiveness of hedging are
described in Note 2. (17) Hedge accounting.
(c) Risk management framework for financial instruments
The fundamental matters on risk management for
SMFG are set forth in “Risk Management Regulations.”
SMFG’s Management Committee establishes the basic
risk management policy, based on the Regulations, which
is then approved by the Board of Directors. SMFG has a
risk management system based on the basic policy. The
Corporate Risk Management Department, which, together
with the Corporate Planning Department, controls risk
management across SMFG by monitoring the development
and implementation of SMFG’s risk management system,
and gives appropriate guidance as needed. Under this
97
SMFGNotes to Consolidated Financial StatementsSMFG 2013 framework, SMFG comprehensively and systematically
manages risks.
(i) Management of credit risk
SMFG conducts integrated management of credit risk
according to its operational characteristics, and the
credit risk inherent in its entire portfolio as well as the
risk in individual credits are managed quantitatively
and continuously.
i. Credit risk management system
At SMBC, basic policies on credit risk management
and other significant matters require the resolution of
the Management Committee and the approval of the
Board of Directors.
The Credit & Investment Planning Department
of the Risk Management Unit is responsible for the
comprehensive management of credit risk. This depart-
ment establishes, revises or abolishes credit policies,
the internal rating system, credit authority regulations,
credit application regulations, and manages non-
performing loans and other aspects of credit portfolio
management. The department also controls SMBC’s
total credit risk by quantifying credit risk (i.e. calculat-
ing risk capital and risk-weighted assets) in cooperation
with the Corporate Risk Management Department.
The department also monitors risk situations and
regularly reports to the Management Committee and
the Board of Directors.
Moreover, the Credit Portfolio Management
Department within the Credit & Investment Planning
Department works to stabilize SMBC’s overall credit
portfolio through market transactions such as loan
securitization. In the Corporate Services Unit, the
Corporate Research Department analyzes industries
as well as investigates the borrower’s business situ-
ation to detect early signs of problems. The Credit
Administration Department is responsible for formu-
lating and implementing measures to reduce SMBC’s
exposures mainly to borrowers classified as potentially
bankrupt or lower.
The Credit Departments of Consumer Banking Unit,
Middle Market Banking Unit and other business units
play a central role in credit screening and managing
their units’ credit portfolios. Each business unit estab-
lishes its credit limits based on the baseline amounts
for each borrower credit grading category. Borrowers
or loans perceived to have high credit risk undergo
intensive evaluation and administration by the unit’s
Credit Department.
Moreover, the Credit Risk Committee, a consultative
body straddling the business units, rounds out SMBC’s
oversight system for undertaking flexible and efficient
control of credit risk and ensuring the overall soundness
of the bank’s loan operations.
In addition to these, the Internal Audit Unit, operat-
ing independently from the business units, audits asset
quality, credit grading accuracy, self-assessment, and
appropriateness of credit risk management system, and
reports the results directly to the Board of Directors
and the Management Committee.
ii. Method of credit risk management
SMBC properly manages the credit risk inherent in
individual loans and the entire portfolio by assessing
and quantifying the credit risk of each borrower/
loan using the internal rating system. In addition to
management of individual loans through credit screen-
ing and monitoring, it manages the credit portfolio
as described below in order to secure and improve
the credit portfolio’s soundness and medium-term
profitability.
— Appropriate risk-taking within the scope of capital
To limit credit risks to a permissible level relative to
capital, “credit risk capital limit” has been established
for internal control purposes. Under this limit, a
general guideline and designated guidelines for real
estate finance, investment in funds and securitization
products, etc. are set for each business unit. Regular
monitoring is conducted to ensure that these guidelines
are being followed.
— Controlling concentration risk
Concentration of risk in specific borrowers/industries/
countries could severely reduce a bank’s capital should
it materialize. SMBC therefore implements measures
to prevent concentration of credit risk in specific
industries, and control large exposures to individual
borrowers by setting guidelines for maximum loan
amounts and conducting thorough loan reviews. To
manage country risk, SMBC also has credit limit
guidelines based on each country’s creditworthiness.
— Greater understanding of actual corporate condi-
tions and balancing returns and risks
SMBC runs credit operations on the basic principle of
thoroughly understanding actual corporate conditions
and gaining profit commensurate with the level of
credit risk entailed, and makes every effort to improve
profit at after-cost (credit cost, capital cost and
overhead) level.
— Reduction and prevention of non-performing loans
On non-performing loans and potential non-performing
loans, SMBC carries out loan reviews to clarify credit
policies and action plans, enabling it to swiftly imple-
ment measures to prevent deterioration of borrowers’
business situations, support business recoveries, collect
on loans, and enhance loan security.
— Approaches to active portfolio management
SMBC is committed to agile portfolio management,
such as using credit derivatives and selling loan claims,
to stabilize its credit portfolio.
In regards to financial instruments such as invest-
ments in certain funds, securitized products and credit
derivatives that indirectly retain risks related to assets
such as corporate bonds and loan claims (underlying
assets), such instruments entail market and liquidity
risks in addition to credit risk, since such instruments
are traded on the market. Credit risk management for
98
SMFGNotes to Consolidated Financial StatementsSMFG 2013
these instruments involving detailed analysis and evalu-
ation of characteristics of underlying assets is performed
while market risk is comprehensively managed within
the framework for managing market and liquidity
risks. Moreover, guidelines have been established based
on the characteristics of each type of risk.
In regards to credit risk of derivative transactions,
the potential exposure based on the market price is
regularly calculated and properly managed. When
the counterparty is a financial institution with whom
SMBC frequently conducts derivative transactions,
measures such as a close-out netting provision, which
provide that offsetting credit exposures between the
2 parties will be combined into a single net payment
from one party to the other in case of bankruptcy or
other default event, are implemented to reduce credit
risk.
(ii) Management of market and liquidity risks
SMFG manages market and liquidity risks by setting
allowable risk limits; ensuring the transparency of the
risk management process; and clearly separating front-
office, middle-office, and back-office operations for a
highly efficient system of mutual checks and balances.
i. Market and liquidity risk management systems
At SMBC, important matters such as basic policies for
managing market and liquidity risks and risk manage-
ment framework are determined by the Management
Committee and then approved by the Board of
Directors.
The aforementioned Corporate Risk Management
Department, which is independent from the business
units that directly handle business transactions,
manages market and liquidity risks in an integrated
manner. The department also monitors market and
liquidity risk situations and regularly reports to the
Management Committee and the Board of Directors.
Furthermore, SMBC’s cross-departmental “ALM
Committee” reports on the state of observance of
market risk capital and liquidity risk capital limits, and
deliberates on administration of ALM policies. SMBC
also has a system whereby front-office departments,
middle-office departments and back-office departments
check each other’s work in order to prevent clerical
errors, unauthorized transactions, etc.
In addition, SMBC’s Internal Audit Unit, which
is independent from other departments, periodically
performs comprehensive internal audits to verify that
the risk management framework is properly function-
ing and reports the audit results to the Management
Committee, the Board of Directors and other concerned
committees and departments.
ii. Market and liquidity risk management methodology
— Market risk management
SMBC manages market risk by setting maximum loss
and VaR (value at risk: maximum potential loss for a
given probability) within the risk capital limit that is
set taking into account stockholders’ equity and other
factors and in accordance with the market transaction
policies.
SMBC uses the historical simulation method (a
method for estimating the maximum loss by running
simulations of changes in profit and loss on market
fluctuation scenarios based on historical data) to
measure VaR. Regarding banking book (market opera-
tions for generating profit through management of
interest rates, terms, and other aspects of assets (loans,
bonds, etc.) and liabilities (deposits, etc.)) and trading
book (market operations for generating profit by
taking advantage of short-term fluctuations in market
values and differences in value among markets), SMBC
calculates the maximum loss that may occur as a result
of market fluctuations in one day with a probability
of 1% based on four years of historical observation.
Concerning the holding of shares (listed shares) for the
purpose of strategic investment, SMBC calculates the
maximum loss that may occur as a result of market
fluctuation in one year with a probability of 1% based
on ten years of historical observation.
Regarding risks associated with foreign exchange
rates, interest rates, equity risk, option prices and
other market risk factors, SMBC manages such risks by
setting a maximum limit on the indicator suited for
each market risk factor such as BPV (basis point value:
denotes the change in value of a financial instrument
resulting from a 0.01 percentage-point change in the
yield).
— Quantitative information on market risks
As of March 31, 2013, total VaR of SMBC and other
major consolidated subsidiaries was ¥31.1 billion in the
banking book, ¥15.0 billion in the trading book and
¥977.4 billion in the holding of shares for the purpose
of strategic investment.
However, it should be noted that these figures are
statistical figures that change according to changes in
the assumptions and the calculation methods, and may
not cover the risk of future market conditions fluctuating
drastically compared to market fluctuations of the past.
— Liquidity risk management
At SMBC, funding liquidity risk is managed based on
a framework consisting of setting funding gap limits
and guidelines, maintaining a system of highly liquid
supplementary funding sources, and establishing con-
tingency plans. SMBC tries to avoid excessive reliance
on short-term funds by managing funding gap limits
and guidelines and has established a contingency plan
covering emergency action plans such as reducing fund-
ing gap limits and guidelines. In addition, to ensure
smooth fulfillment of transactions in face of market
turmoil, SMBC holds assets such as U.S. treasuries that
can be sold immediately and emergency committed
lines as supplemental liquidity.
Moreover, to manage the liquidity risk of marketable
instruments, derivative transactions, etc., SMBC has
trading limits for each business office classified by
99
SMFGNotes to Consolidated Financial StatementsSMFG 2013
currency, instrument, transaction period, etc. As for
financial futures, etc., risks are managed by restricting
positions within a certain percentage of open interest in
the entire market.
(d) Supplementary explanations about matters concerning fair
value of financial instruments
Fair values of financial instruments are based on their
market prices and, in cases where market prices are not
available, reasonably calculated prices. Such prices have
been calculated using certain assumptions, and may differ
if calculated based on different assumptions.
(2) Fair value of financial instruments
(a) “Consolidated balance sheet amount,” “Fair value” and “Net unrealized gains (losses)” of financial instruments as of March 31,
2013 and 2012 are as follows. The amounts shown in the following table do not include financial instruments whose fair values are
extremely difficult to determine, such as unlisted stocks classified as “other securities,” and stocks of subsidiaries and affiliates.
March 31
1) Cash and due from banks and Deposits with banks*1 .......................
2) Call loans and bills bought*1 ...........................................................
3) Receivables under resale agreements ................................................
4) Receivables under securities borrowing transactions ........................
5) Monetary claims bought*1 ...............................................................
6) Trading assets
Securities classified as trading purposes ........................................
7) Money held in trust .........................................................................
8) Securities
Bond classified as held-to-maturity ..............................................
Other securities ...........................................................................
9) Loans and bills discounted ...............................................................
Reserve for possible loan losses*1 .................................................
10) Foreign exchanges*1 ........................................................................
11) Lease receivables and investment assets*1 .........................................
Total assets ......................................................................................
1) Deposits ..........................................................................................
2) Negotiable certificates of deposit .....................................................
3) Call money and bills sold .................................................................
4) Payables under repurchase agreements .............................................
5) Payables under securities lending transactions .................................
6) Commercial paper ...........................................................................
7) Trading liabilities
Trading securities sold for short sales ...........................................
8) Borrowed money .............................................................................
9) Foreign exchanges ...........................................................................
10) Short-term bonds .............................................................................
11) Bonds ..............................................................................................
12) Due to trust account ........................................................................
Total liabilities ................................................................................
Derivative transactions*2
Consolidated balance
sheet amount
¥ 10,790,611
1,352,783
273,217
3,494,398
1,533,638
3,408,810
22,789
5,840,512
34,597,867
65,632,091
(695,077)
64,937,014
2,220,409
1,674,220
¥130,146,271
¥ 89,081,811
11,755,654
2,954,051
2,076,791
4,433,835
1,499,499
1,910,129
4,979,460
337,901
1,126,300
4,750,806
643,350
¥125,549,591
Millions of yen
2013
Fair value
¥ 10,798,156
1,354,011
274,216
3,494,398
1,545,517
3,408,810
22,789
5,901,662
34,597,867
66,306,879
2,224,866
1,742,524
¥131,671,699
¥ 89,084,089
11,755,929
2,954,050
2,076,791
4,433,835
1,499,503
1,910,129
5,016,127
337,901
1,126,291
4,920,741
643,350
¥125,758,742
Hedge accounting not applied .....................................................
Hedge accounting applied ...........................................................
Total ................................................................................................
¥ 167,039
[166,382]
¥ 657
¥ 167,039
[166,382]
¥ 657
Net unrealized gains
(losses)
¥ 7,544
1,228
998
—
11,879
—
—
61,150
—
1,369,865
4,457
68,303
¥1,525,427
¥ 2,277
275
(0)
—
—
4
—
36,666
—
(8)
169,935
—
¥ 209,150
¥ —
—
¥ —
100
SMFGNotes to Consolidated Financial StatementsSMFG 2013 March 31
1) Cash and due from banks and Deposits with banks*1 .......................
2) Call loans and bills bought*1 ...........................................................
3) Receivables under resale agreements ................................................
4) Receivables under securities borrowing transactions ........................
5) Monetary claims bought*1 ...............................................................
6) Trading assets
Securities classified as trading purposes ........................................
7) Money held in trust .........................................................................
8) Securities
Bond classified as held-to-maturity ..............................................
Other securities ...........................................................................
9) Loans and bills discounted ...............................................................
Reserve for possible loan losses*1 .................................................
10) Foreign exchanges*1 ........................................................................
11) Lease receivables and investment assets*1 .........................................
Total assets ......................................................................................
1) Deposits ..........................................................................................
2) Negotiable certificates of deposit .....................................................
3) Call money and bills sold .................................................................
4) Payables under repurchase agreements .............................................
5) Payables under securities lending transactions .................................
6) Commercial paper ...........................................................................
7) Trading liabilities
Trading securities sold for short sales ...........................................
8) Borrowed money .............................................................................
9) Foreign exchanges ...........................................................................
10) Short-term bonds .............................................................................
11) Bonds ..............................................................................................
12) Due to trust account ........................................................................
Total liabilities ................................................................................
Derivative transactions*2
Consolidated balance
sheet amount
¥ 7,711,078
1,290,685
227,749
4,539,555
1,354,400
4,285,328
23,878
5,277,668
36,403,944
62,720,599
(757,820)
61,962,778
1,276,510
1,690,977
¥126,044,556
¥ 84,128,561
8,593,638
2,144,599
1,676,902
5,810,730
1,193,249
2,172,857
8,839,648
302,580
949,388
4,641,927
443,723
¥120,897,808
Millions of yen
2012
Fair value
¥ 7,715,673
1,291,614
228,471
4,539,555
1,360,792
4,285,328
23,878
5,346,853
36,403,944
63,076,899
1,281,154
1,771,120
¥127,325,285
¥ 84,136,544
8,593,118
2,144,599
1,676,902
5,810,730
1,193,249
2,172,857
8,856,720
302,580
949,385
4,771,814
443,723
¥121,052,227
Hedge accounting not applied .....................................................
Hedge accounting applied ...........................................................
Total ................................................................................................
¥ [102,744]
308,082
¥ 205,338
¥ [102,744]
308,082
¥ 205,338
Net unrealized gains
(losses)
¥ 4,594
928
722
—
6,391
—
—
69,184
—
1,114,120
4,643
80,143
¥1,280,729
¥ 7,982
(519)
(0)
—
—
—
—
17,072
—
(3)
129,886
—
¥ 154,418
¥ —
—
¥ —
101
SMFGNotes to Consolidated Financial StatementsSMFG 2013 Millions of U.S. dollars
2013
March 31
1) Cash and due from banks and Deposits with banks*1 .......................
2) Call loans and bills bought*1 ...........................................................
3) Receivables under resale agreements ................................................
4) Receivables under securities borrowing transactions ........................
5) Monetary claims bought*1 ...............................................................
6) Trading assets
Securities classified as trading purposes ........................................
7) Money held in trust .........................................................................
8) Securities
Bond classified as held-to-maturity ..............................................
Other securities ...........................................................................
9) Loans and bills discounted ...............................................................
Reserve for possible loan losses*1 .................................................
10) Foreign exchanges*1 ........................................................................
11) Lease receivables and investment assets*1 .........................................
Total assets ......................................................................................
1) Deposits ..........................................................................................
2) Negotiable certificates of deposit .....................................................
3) Call money and bills sold .................................................................
4) Payables under repurchase agreements .............................................
5) Payables under securities lending transactions .................................
6) Commercial paper ...........................................................................
7) Trading liabilities
Trading securities sold for short sales ...........................................
8) Borrowed money .............................................................................
9) Foreign exchanges ...........................................................................
10) Short-term bonds .............................................................................
11) Bonds ..............................................................................................
12) Due to trust account ........................................................................
Total liabilities ................................................................................
Derivative transactions*2
Consolidated balance
sheet amount
$ 114,782
14,390
2,906
37,170
16,314
36,260
242
62,126
368,023
698,139
(7,394)
690,746
23,619
17,809
$1,384,388
$ 947,578
125,047
31,423
22,091
47,163
15,950
20,318
52,967
3,594
11,981
50,535
6,843
$1,335,492
Fair value
$ 114,862
14,403
2,917
37,170
16,440
36,260
242
62,777
368,023
705,317
23,666
18,536
$1,400,614
$ 947,602
125,050
31,423
22,091
47,163
15,950
20,318
53,357
3,594
11,981
52,343
6,843
$1,337,717
Hedge accounting not applied .....................................................
Hedge accounting applied ...........................................................
Total ................................................................................................
$ 1,777
[1,769]
$ 7
$ 1,777
[1,769]
$ 7
Net unrealized gains
(losses)
$ 80
13
11
—
126
—
—
650
—
14,571
47
727
$16,226
$ 24
3
(0)
—
—
0
—
390
—
(0)
1,808
—
$ 2,225
$ —
—
$ —
*1 The amounts do not include general reserve for possible loan losses and specific reserve for possible loan losses. The reserves for possible losses on “Cash and due from banks
and Deposits with banks,” “Call loans and bills bought,” “Monetary claims bought,” “Foreign exchanges,” and “Lease receivables and investment assets” are deducted
directly from “Consolidated balance sheet amount” since they are immaterial.
*2 The amounts collectively represent the derivative transactions which are recorded on “Trading assets,” “Trading liabilities,” “Other assets” and “Other liabilities.” Debts and
credits arising from derivative transactions are presented on a net basis. Debts and credits arising from derivative transactions are presented on a net basis, with a net debt
presented in square brackets.
(b) Fair value calculation methodology for financial
instruments
Assets
1) Cash and due from banks and Deposits with banks,
2) Call loans and bills bought, 3) Receivables under resale
agreements, 4) Receivables under securities borrowing
transactions, 9) Loans and bills discounted, 10) Foreign
exchanges, and 11) Lease receivables and investment assets:
Of these transactions, the book values of dues from banks
without maturity and overdrafts with no specified repay-
ment dates are regarded to approximate their fair values;
thus, their fair values are their book values.
For short-term transactions with remaining life as of the
end of the fiscal year not exceeding 6 months, their fair
values are, in principle, their book value as book values are
regarded to approximate fair values.
The fair value of those with a remaining life of more
than 6 months is, in principle, the present value of
future cash flows (calculated by discounting estimated
future cash flows, taking into account factors such as the
borrower’s internal rating and pledged collateral, using a
rate comprising a risk-free interest rate and an overhead
ratio). Certain consolidated subsidiaries of SMFG calculate
the present value by discounting the estimated future cash
flows computed based on the contractual interest rate,
using a rate comprising a risk-free interest rate and a credit
risk premium.
Regarding claims on bankrupt borrowers, effectively
102
SMFGNotes to Consolidated Financial StatementsSMFG 2013 bankrupt borrowers and potentially bankrupt borrowers,
expected losses on such claims are calculated based on
either the present value of expected future cash flows or the
expected recoverable amount from collateral or guarantees.
Since the claims’ balance sheet amounts at the closing
date minus the current expected amount of loan losses
approximate their fair values, such amounts are regarded as
their fair values.
5) Monetary claims bought:
The fair values of monetary claims bought with market
prices, such as beneficial interests in commodities invest-
ment trusts, are based on their market prices as of the end
of the fiscal year. The fair values of subordinated trust
beneficiary interests related to securitized housing loans
are based on the assessed value of underlying assets minus
the assessed value of senior beneficial interests, etc. The
fair values of other transactions are, in principle, based on
prices calculated using methods similar to the methods
applied to 9) Loans and bills discounted.
6) Trading assets:
The fair values of bonds and other securities held for trad-
ing purposes are, in principle, based on their market price
at the final date of the fiscal year.
7) Money held in trust:
The fair values of money held in trust are, in principle,
based on the market prices of securities held in trust
calculated using methods similar to the methods applied to
8) Securities.
8) Securities:
In principle, the fair values of stocks (including foreign
stocks) are based on the average market price during 1
month before the end of the fiscal year. The fair values of
bonds and securities with market prices other than stocks
are prices calculated based on their market prices on the
final date of the fiscal year.
In light of the “Practical Solution on Measurement of
Fair Value for Financial Assets” (ASBJ Practical Issues
Task Force No. 25), the fair values of floating-rate Japanese
government bonds are based on the present value of future
cash flows (the government bond yield is used to discount
and estimate future cash flows). Bond yield and yield
volatility are the main price parameters. The fair values
of those without market prices, such as private placement
bonds, are based on the present value of future cash flows
calculated by discounting estimated future cash flows tak-
ing into account the borrower’s internal rating and pledged
collateral by a rate comprising a risk-free interest rate and
an overhead ratio. However, the fair values of bonds issued
by bankrupt borrowers, effectively bankrupt borrowers and
potentially bankrupt borrowers are based on the bond’s
face value after the deduction of the expected amount of a
loss on the bond computed using the same method applied
to the estimation of a loan loss. The fair values of publicly
offered investment trusts are calculated based on the
published net asset value (NAV) per share, while those of
private placement investment trusts are calculated based on
the NAV published by securities firms and other financial
institutions.
Liabilities
1) Deposits, 2) Negotiable certificates of deposit and
12) Due to trust account:
The fair values of demand deposits and deposits without
maturity are based on their book values as at the end of the
fiscal year. The fair values of short-term transactions with
remaining life as of the end of the fiscal year not exceeding
6 months are also based on their book values, as their book
values are regarded to approximate their fair values. The
fair values of transactions with a remaining life of more
than 6 months are, in principle, based on the present value
of future cash flows calculated using the rate applied to the
same type of deposits that are newly accepted until the end
of the remaining life.
3) Call money and bills sold, 4) Payables under repurchase
agreements, 5) Payables under securities lending transac-
tions, 6) Commercial paper, 8) Borrowed money,
10) Short-term bonds and 11) Bonds:
The fair values of short-term transactions with remaining
life as of the end of the fiscal year not exceeding 6 months
are based on their book values, as their book values are
regarded to approximate their fair values. For transactions
with a remaining life of more than 6 months, their fair
values are, in principle, based on the present value of future
cash flows calculated using the refinancing rate applied to
the same type of instruments for the remaining life. The
fair values of bonds are based on the present value of future
cash flows calculated using the rate derived from the data
on the yields of benchmark bonds and publicly offered
subordinated bonds published by securities firms.
7) Trading liabilities:
The fair values of bonds sold for short sales and other
securities for trading purposes are, in principle, based on
their market prices on the final date of the fiscal year.
9) Foreign exchanges:
The fair values of foreign currency-denominated deposits
without maturity received from other banks are based on
their book values as at the end of the fiscal year.
The fair values of foreign exchange related short-term
borrowings are based on their book values, as their book
values are regarded to approximate their fair values.
Derivatives transactions
The fair values of exchange-traded derivatives are based on
their closing prices. With regard to OTC transactions, the
fair values of interest rate, currency, stock, bond and credit
derivatives are based on their settlement prices as at the
end of the fiscal year calculated based on the present value
of the expected future cash flows or using valuation tech-
niques such as the option pricing model. The fair values
of commodity derivatives transactions are based on their
settlement prices as at the end of the fiscal year, calculated
based on the derivative instrument’s components, includ-
ing price and contract term.
103
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(3) Consolidated balance sheet amounts of financial instruments whose fair values are extremely difficult to determine are as follows:
March 31
Monetary claims bought:
Millions of yen
2013
2012
Millions of U.S.
dollars
2013
Monetary claims bought without market prices*1 ........................................
¥ 5,845
¥ 6,062
$ 62
Securities:
Unlisted stocks, etc.*2, 4 ..............................................................................
Investments in partnership, etc.*3, 4 .............................................................
Total ................................................................................................................
*1 They are beneficiary claims that (a) behave more like equity than debt, (b) do not have market prices, and (c) it is difficult to rationally estimate fair values.
*2 They are not included in the scope of fair value disclosure since there are no market prices and it is extremely difficult to determine their fair values.
*3 They are capital contributions with no market prices. The above-stated amount includes the book value amount of investments in the partnership of which the SMFG records net
268,535
341,945
¥616,326
271,149
345,987
¥623,198
2,856
3,637
$6,556
changes in their balance sheets and statements of income.
*4 Unlisted stocks and investments in partnership totaling ¥5,603 million ($60 million) and ¥9,292 million were written-down in the fiscal years ended March 31, 2013 and 2012,
respectively.
(4) Redemption schedule of monetary claims bought and securities with maturities
March 31
Deposits with banks .....................................................
Call loans and bills bought ...........................................
Receivables under resale agreements .............................
Receivables under securities borrowing transactions .....
Monetary claims bought*1, 2 .........................................
Securities*1 ..................................................................
Bonds classified as held-to-maturity ..........................
Japanese government bonds ..................................
Japanese local government bonds ..........................
Japanese corporate bonds .......................................
Other ....................................................................
Other securities with maturity ..................................
Japanese government bonds ..................................
Japanese local government bonds ..........................
Japanese corporate bonds .......................................
Other ....................................................................
Loans and bills discounted*1, 2 ......................................
Foreign exchanges*1 .....................................................
Lease receivables and investment assets*1 ......................
Total .............................................................................
Within 1 year
¥ 9,772,670
1,333,721
205,025
3,494,398
1,013,317
9,733,436
1,314,759
1,180,000
57,477
77,282
—
8,418,676
6,935,299
28,145
527,501
927,729
14,162,034
2,221,938
529,689
¥42,466,232
Millions of yen
2013
After 1 year
through 5 years
¥ 11,211
20,024
68,192
—
216,129
23,314,246
4,403,679
4,215,000
101,175
87,504
—
18,910,566
12,023,326
163,468
1,908,257
4,815,515
25,421,519
1,868
877,062
¥49,930,255
After 5 years
through 10 years
¥ —
—
—
—
86,143
3,146,358
112,000
110,000
—
1,500
500
3,034,358
2,381,700
1,289
287,634
363,734
9,822,057
—
122,531
¥13,177,090
After 10 years
¥ —
—
—
—
200,559
635,641
—
—
—
—
—
635,641
5,000
40
61,081
569,519
8,662,488
—
36,684
¥9,535,374
104
SMFGNotes to Consolidated Financial StatementsSMFG 2013 March 31
Deposits with banks .....................................................
Call loans and bills bought ...........................................
Receivables under resale agreements .............................
Receivables under securities borrowing transactions .....
Monetary claims bought*2 ............................................
Securities*1 ..................................................................
Bonds classified as held-to-maturity ..........................
Japanese government bonds ..................................
Japanese local government bonds ..........................
Japanese corporate bonds .......................................
Other ....................................................................
Other securities with maturity ..................................
Japanese government bonds ..................................
Japanese local government bonds ..........................
Japanese corporate bonds .......................................
Other ....................................................................
Loans and bills discounted*1, 2 ......................................
Foreign exchanges*1 .....................................................
Lease receivables and investment assets*1 ......................
Total .............................................................................
March 31
Deposits with banks .....................................................
Call loans and bills bought ...........................................
Receivables under resale agreements .............................
Receivables under securities borrowing transactions .....
Monetary claims bought*1, 2 .........................................
Securities*1 ..................................................................
Bonds classified as held-to-maturity ..........................
Japanese government bonds ..................................
Japanese local government bonds ..........................
Japanese corporate bonds .......................................
Other ....................................................................
Other securities with maturity ..................................
Japanese government bonds ..................................
Japanese local government bonds ..........................
Japanese corporate bonds .......................................
Other ....................................................................
Loans and bills discounted*1, 2 ......................................
Foreign exchanges*1 .....................................................
Lease receivables and investment assets*1 ......................
Total .............................................................................
Within 1 year
¥ 6,723,816
1,264,667
168,028
4,539,555
950,515
8,586,192
310,255
210,000
17,934
81,321
1,000
8,275,936
7,128,558
44,336
551,651
551,389
13,712,810
1,276,515
522,191
¥37,744,292
Within 1 year
$103,954
14,187
2,181
37,170
10,779
103,536
13,985
12,552
611
822
—
89,551
73,772
299
5,611
9,868
150,644
23,635
5,634
$451,720
Millions of yen
2012
After 1 year
through 5 years
¥ 3,166
27,150
59,721
—
129,125
26,436,600
4,773,397
4,465,000
159,310
149,086
—
21,663,203
14,798,646
233,668
1,893,545
4,737,343
23,762,958
1,276
919,013
¥51,339,012
After 5 years
through 10 years
¥ —
—
—
—
69,604
3,252,686
181,500
170,000
—
8,000
3,500
3,071,186
2,399,100
12,738
348,066
311,281
8,932,653
—
114,458
¥12,369,403
Millions of U.S. dollars
2013
After 1 year
through 5 years
$ 119
213
725
—
2,299
247,998
46,843
44,836
1,076
931
—
201,155
127,894
1,739
20,298
51,223
270,413
20
9,329
$531,116
After 5 years
through 10 years
$ —
—
—
—
916
33,468
1,191
1,170
—
16
5
32,277
25,335
14
3,060
3,869
104,479
—
1,303
$140,167
After 10 years
¥ —
—
—
—
194,114
629,654
—
—
—
—
—
629,654
—
42
58,126
571,486
8,445,738
—
40,969
¥9,310,476
After 10 years
$ —
—
—
—
2,133
6,761
—
—
—
—
—
6,761
53
0
650
6,058
92,144
—
390
$101,429
*1 The amounts shown in the table above do not include amounts for claims on bankrupt borrowers, effectively bankrupt borrowers and potentially bankrupt borrowers and other
claims for which redemption is unlikely. The amounts for such claims are as follows:
March 31
Monetary claims bought ................................................................................................................
Securities .......................................................................................................................................
Loans and bills discounted .............................................................................................................
Foreign exchanges .........................................................................................................................
Lease receivables and investment assets ..........................................................................................
2013
¥ 69
33,995
1,080,983
2,620
20,513
2012
¥ —
28,667
1,116,378
2,845
5,960
Millions of yen
Millions of
U.S. dollars
2013
$ 1
362
11,499
28
218
*2 Does not include “Monetary claims bought” and “Loans and bills discounted” without tenure totaling ¥8,277 million ($88 million) and ¥6,482,020 million ($68,950 million) at
March 31, 2013, respectively. Does not include “Monetary claims bought” and “Loans and bills discounted” without tenure totaling ¥1,789 million and ¥6,750,883 million at
March 31, 2012, respectively.
105
SMFGNotes to Consolidated Financial StatementsSMFG 2013 (5) Redemption schedule of bonds, borrowed money and other interest-bearing debts
March 31
Deposits* ....................................................................
Negotiable certificates of deposit ..................................
Call money and bills sold ..............................................
Payables under repurchase agreements ..........................
Payables under securities lending transactions ..............
Commercial paper ........................................................
Borrowed money ..........................................................
Foreign exchanges ........................................................
Short-term bonds ..........................................................
Bonds ...........................................................................
Due to trust account .....................................................
Total .............................................................................
Within 1 year
¥ 84,003,627
11,266,119
2,954,051
2,076,791
4,433,835
1,499,499
2,845,802
337,901
1,126,300
513,696
643,350
¥111,700,975
March 31
Deposits* ....................................................................
Negotiable certificates of deposit ..................................
Call money and bills sold ..............................................
Payables under repurchase agreements ..........................
Payables under securities lending transactions ..............
Commercial paper ........................................................
Borrowed money ..........................................................
Foreign exchanges ........................................................
Short-term bonds ..........................................................
Bonds ...........................................................................
Due to trust account .....................................................
Total .............................................................................
Within 1 year
¥ 79,446,175
8,535,575
2,144,599
1,676,902
5,810,730
1,193,249
6,931,770
302,580
949,400
474,539
443,723
¥107,909,247
March 31
Deposits* .....................................................................
Negotiable certificates of deposit ..................................
Call money and bills sold ..............................................
Payables under repurchase agreements ..........................
Payables under securities lending transactions ..............
Commercial paper ........................................................
Borrowed money ..........................................................
Foreign exchanges ........................................................
Short-term bonds ..........................................................
Bonds ...........................................................................
Due to trust account .....................................................
Total .............................................................................
Within 1 year
$ 893,561
119,840
31,423
22,091
47,163
15,950
30,271
3,594
11,981
5,464
6,843
$1,188,182
* Demand deposits are included in “Within 1 year.” Deposits include current deposits.
Millions of yen
2013
After 1 year
through 5 years
¥4,504,407
489,535
—
—
—
—
1,224,348
—
—
2,314,988
—
¥8,533,279
After 5 years
through 10 years
¥ 310,546
—
—
—
—
—
573,101
—
—
1,615,690
—
¥2,499,338
Millions of yen
2012
After 1 year
through 5 years
¥4,052,815
58,062
—
—
—
—
1,349,848
—
—
1,995,686
—
¥7,456,413
After 5 years
through 10 years
¥ 362,805
—
—
—
—
—
323,272
—
—
1,912,623
—
¥2,598,701
Millions of U.S. dollars
2013
After 1 year
through 5 years
$47,914
5,207
—
—
—
—
13,024
—
—
24,625
—
$90,770
After 5 years
through 10 years
$ 3,303
—
—
—
—
—
6,096
—
—
17,186
—
$26,586
After 10 years
¥263,230
—
—
—
—
—
336,207
—
—
308,847
—
¥908,285
After 10 years
¥266,577
—
—
—
—
—
234,757
—
—
260,837
—
¥762,172
After 10 years
$2,800
—
—
—
—
—
3,576
—
—
3,285
—
$9,662
106
SMFGNotes to Consolidated Financial StatementsSMFG 2013 30. Fair Value Information
(1) Securities
The amounts shown in the following tables include trading securities and short-term bonds classified as “Trading assets,” negotiable
certificates of deposit bought classified as “Deposits with banks,” and beneficiary claims on loan trusts classified as “Monetary claims
bought,” in addition to “Securities” stated in the consolidated balance sheets.
(a) Securities classified as trading purposes
March 31
Valuation gains included in the earnings for the fiscal year ........................
2013
¥36,731
2012
¥16,879
Millions of yen
(b) Bonds classified as held-to-maturity
March 31
Bonds with unrealized gains:
Consolidated balance
sheet amount
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Bonds with unrealized losses:
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Total ...................................................................................................
¥5,244,786
158,758
165,154
500
¥5,569,198
¥ 269,713
373
1,227
11,599
¥ 282,913
¥5,852,111
March 31
Bonds with unrealized gains:
Consolidated balance
sheet amount
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Bonds with unrealized losses:
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Total ...................................................................................................
¥4,787,498
175,423
237,210
2,695
¥5,202,828
¥ 70,020
2,302
713
10,402
¥ 83,438
¥5,286,267
Millions of yen
2013
Fair value
¥5,301,500
160,657
167,728
503
¥5,630,390
¥ 269,676
372
1,223
11,599
¥ 282,871
¥5,913,262
Millions of yen
2012
Fair value
¥4,849,443
178,243
241,726
2,703
¥5,272,117
¥ 69,930
2,298
710
10,396
¥ 83,335
¥5,355,452
Millions of U.S.
dollars
2013
$391
Net unrealized
gains (losses)
¥56,714
1,899
2,574
3
¥61,191
¥ (37)
(0)
(3)
—
¥ (41)
¥61,150
Net unrealized
gains (losses)
¥61,944
2,819
4,515
8
¥69,288
¥ (90)
(3)
(3)
(6)
¥ (103)
¥69,184
107
SMFGNotes to Consolidated Financial StatementsSMFG 2013 Millions of U.S. dollars
2013
March 31
Bonds with unrealized gains:
Consolidated balance
sheet amount
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Bonds with unrealized losses:
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Total ...................................................................................................
$55,790
1,689
1,757
5
$59,240
$ 2,869
4
13
123
$ 3,009
$62,250
(c) Other securities
March 31
Other securities with unrealized gains:
Consolidated balance
sheet amount
Stocks .................................................................................................
Bonds .................................................................................................
Japanese government bonds ............................................................
Japanese local government bonds ....................................................
Japanese corporate bonds .................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Other securities with unrealized losses:
Stocks .................................................................................................
Bonds .................................................................................................
Japanese government bonds ............................................................
Japanese local government bonds ....................................................
Japanese corporate bonds .................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Total ...................................................................................................
¥ 2,143,981
22,538,258
19,823,867
194,380
2,520,010
5,705,192
¥30,387,433
¥ 403,579
1,987,069
1,656,071
2,371
328,627
2,382,377
¥ 4,773,026
¥35,160,459
March 31
Other securities with unrealized gains:
Consolidated balance
sheet amount
Stocks .................................................................................................
Bonds .................................................................................................
Japanese government bonds ............................................................
Japanese local government bonds ....................................................
Japanese corporate bonds .................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Other securities with unrealized losses:
Stocks .................................................................................................
Bonds .................................................................................................
Japanese government bonds ............................................................
Japanese local government bonds ....................................................
Japanese corporate bonds .................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Total ...................................................................................................
¥ 1,193,663
24,475,020
21,717,683
289,456
2,467,880
4,649,021
¥30,317,706
¥ 946,993
3,209,463
2,751,854
7,702
449,906
2,461,368
¥ 6,617,825
¥36,935,531
Fair value
$56,393
1,709
1,784
5
$59,891
$ 2,869
4
13
123
$ 3,009
$62,900
Millions of yen
2013
Acquisition cost
¥ 1,276,872
22,426,056
19,759,082
192,766
2,474,207
5,427,931
¥29,130,860
¥ 499,451
1,990,951
1,656,285
2,384
332,281
2,417,597
¥ 4,908,000
¥34,038,861
Millions of yen
2012
Acquisition cost
¥ 703,589
24,356,856
21,654,331
287,307
2,415,217
4,510,332
¥29,570,777
¥ 1,165,606
3,215,812
2,752,509
7,717
455,585
2,508,349
¥ 6,889,769
¥36,460,546
Net unrealized
gains (losses)
$603
20
27
0
$651
$ (0)
(0)
(0)
—
$ (0)
$650
Net unrealized
gains (losses)
¥ 867,109
112,202
64,785
1,614
45,802
277,260
¥1,256,572
¥ (95,872)
(3,881)
(214)
(13)
(3,653)
(35,220)
¥ (134,973)
¥1,121,598
Net unrealized
gains (losses)
¥ 490,074
118,164
63,351
2,149
52,663
138,689
¥ 746,928
¥(218,613)
(6,348)
(654)
(15)
(5,678)
(46,981)
¥(271,943)
¥ 474,984
108
SMFGNotes to Consolidated Financial StatementsSMFG 2013 March 31
Other securities with unrealized gains:
Stocks .................................................................................................
Bonds .................................................................................................
Japanese government bonds ............................................................
Japanese local government bonds ....................................................
Japanese corporate bonds .................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Other securities with unrealized losses:
Stocks .................................................................................................
Bonds .................................................................................................
Japanese government bonds ............................................................
Japanese local government bonds ....................................................
Japanese corporate bonds .................................................................
Other ..................................................................................................
Subtotal ..........................................................................................
Total ...................................................................................................
Millions of U.S. dollars
2013
Consolidated balance
sheet amount
Acquisition cost
Net unrealized
gains (losses)
$ 22,806
239,743
210,870
2,068
26,806
60,687
$323,236
$ 4,293
21,137
17,616
25
3,496
25,342
$ 50,771
$374,008
$ 13,582
238,550
210,181
2,050
26,319
57,738
$309,870
$ 5,313
21,178
17,618
25
3,535
25,716
$ 52,207
$362,077
$ 9,224
1,194
689
17
487
2,949
$13,366
$ (1,020)
(41)
(2)
(0)
(39)
(375)
$ (1,436)
$11,931
Notes: 1. Net unrealized gains (losses) on other securities shown above include gains of ¥29,831 million ($317 million) for the fiscal year ended March 31, 2013 and ¥196
million for the fiscal year ended March 31, 2012 that are recognized in the fiscal year’s earnings by applying fair value hedge accounting.
2. Other securities whose fair values are extremely difficult to determine are as follows:
March 31
Stocks .........................................................................................................................
Other .........................................................................................................................
Total ...........................................................................................................................
2013
¥259,145
357,180
¥616,326
2012
¥265,512
357,686
¥623,198
Millions of yen
Millions of U.S. dollars
2013
$2,757
3,799
$6,556
These amounts are not included in “(c) Other securities” since there are no market prices and it is extremely difficult to determine their fair values.
(d) Held-to-maturity bonds sold during the fiscal year ended March 31, 2013 and 2012
There are no corresponding transactions.
(e) Consolidated balance sheet amounts of other securities sold during the fiscal year ended March 31, 2013 and 2012
Year ended March 31
Stocks .....................................................................................................
Bonds .....................................................................................................
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other .....................................................................................................
Total .......................................................................................................
Sales amount
¥ 85,334
26,982,437
26,558,059
140,003
284,375
19,715,537
¥46,783,309
Year ended March 31
Stocks .....................................................................................................
Bonds .....................................................................................................
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other .....................................................................................................
Total .......................................................................................................
Sales amount
¥ 33,752
16,676,636
16,261,807
178,423
236,405
15,598,701
¥32,309,090
Millions of yen
2013
Gains on sales
¥ 19,436
60,772
59,471
542
758
110,118
¥190,326
Millions of yen
2012
Gains on sales
¥ 8,921
39,724
38,204
553
966
143,163
¥191,809
Losses on sales
¥(25,912)
(7,845)
(7,730)
(85)
(29)
(29,874)
¥(63,632)
Losses on sales
¥ (3,221)
(2,586)
(2,115)
(256)
(214)
(16,788)
¥(22,596)
109
SMFGNotes to Consolidated Financial StatementsSMFG 2013
Year ended March 31
Stocks .....................................................................................................
Bonds .....................................................................................................
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other .....................................................................................................
Total .......................................................................................................
Sales amount
$ 908
287,017
282,502
1,489
3,025
209,717
$497,642
Millions of U.S. dollars
2013
Gains on sales
$ 207
646
633
6
8
1,171
$2,025
Losses on sales
$(276)
(83)
(82)
(1)
(0)
(318)
$(677)
(f) Change of classification of securities
There are no corresponding transactions.
(g) Write-down of securities
Securities other than those classified as trading purpose, stocks of subsidiaries and affiliates (excluding securities whose fair value are
extremely difficult to determine) are considered as impaired if the fair value of the securities decreases materially below the acquisi-
tion cost and such decline is not considered to be recoverable. The securities are recognized at fair value on the consolidated balance
sheet and the amount of write-down is accounted for as valuation loss for the fiscal year. Valuation loss for the fiscal year ended March
31, 2013 and 2012 were ¥34,340 million ($365 million) and ¥27,988 million, respectively. The rule for determining “material
decline” is as follows and is based on the classification of issuers under the rules of self-assessment of assets.
Bankrupt/Effectively bankrupt/Potentially bankrupt issuers:
Issuers requiring caution:
Fair value is lower than acquisition cost.
Fair value is 30% or more lower than acquisition cost.
Fair value is 50% or more lower than acquisition cost.
Normal issuers:
Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt.
Effectively bankrupt issuers: Issuers that are not legally bankrupt but regarded as substantially bankrupt.
Potentially bankrupt issuers: Issuers that are not bankrupt now, but are perceived to have a high risk of falling into bankruptcy.
Issuers requiring caution: Issuers that are identified for close monitoring.
Normal issuers: Issuers other than the above 4 categories of issuers.
(2) Money held in trust
(a) Money held in trust classified as trading purposes
March 31
Valuation gains (losses) included in the earnings for the fiscal year .............
2013
¥—
2012
¥(2)
Millions of yen
(b) Money held in trust classified as held-to-maturity
There are no corresponding transactions.
(c) Other money held in trust
March 31
Consolidated balance sheet amount ............................................................
Acquisition cost .........................................................................................
Net unrealized gains (losses) ......................................................................
Unrealized gains ....................................................................................
Unrealized losses ....................................................................................
2013
¥22,789
22,778
10
10
—
2012
¥22,430
22,477
(46)
—
(46)
Millions of yen
Notes: 1. Consolidated balance sheet amount is calculated using market prices at the fiscal year-end.
2. “Unrealized gains” and “Unrealized losses” are breakdowns of “Net unrealized gains (losses)” respectively.
Millions of
U.S. dollars
2013
$—
Millions of
U.S. dollars
2013
$242
242
0
0
—
110
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(3) Net unrealized gains on other securities and other money held in trust
Millions of yen
March 31
Net unrealized gains ..................................................................................
Other securities .....................................................................................
Other money held in trust .....................................................................
(–) Deferred tax liabilities ..........................................................................
Net unrealized gains on other securities (before adjustment) ......................
(–) Minority interests .................................................................................
(+) SMFG’s interest in net unrealized gains on valuation of other
securities held by the equity method affiliates ....................................
Net unrealized gains on other securities .....................................................
2013
¥1,092,274
1,092,264
10
310,233
782,041
29,086
2,798
¥ 755,753
2012
¥474,803
474,849
(46)
138,439
336,363
13,124
7,194
¥330,433
Millions of
U.S. dollars
2013
$11,619
11,619
0
3,300
8,319
309
30
$ 8,039
Notes: 1. Gains of ¥29,831 million ($317 million) for the fiscal year ended March 31, 2013 and ¥196 million for the fiscal year ended March 31, 2012 recognized in the fiscal
year’s earnings by applying fair value hedge accounting are deducted from net unrealized gains on other securities.
2. Net unrealized gains included foreign currency translation adjustments on non-marketable securities denominated in foreign currencies.
31. Derivative Transactions
(1) Derivative transactions to which the hedge accounting method is not applied
The following tables set forth the contract amount or the amount equivalent to the principal, fair value, valuation gains (losses) and cal-
culation method of the relevant commodities by category with respect to derivative transactions to which the hedge accounting method
is not applied at the end of the fiscal year. Contract amount does not indicate the market risk relating to derivative transactions.
(a) Interest rate derivatives
March 31
Listed
Interest rate futures:
Millions of yen
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 21,572,140
20,511,203
¥ 4,963,621
4,707,254
¥ (5,339)
4,575
¥ (5,339)
4,575
Interest rate options:
Sold ....................................................................................................
Bought ...............................................................................................
254,486
11,402,713
123,780
4,063,212
(65)
450
(65)
450
Over-the-counter
Forward rate agreements:
Sold ....................................................................................................
Bought ...............................................................................................
Interest rate swaps: .................................................................................
Receivable fixed rate/payable floating rate ..........................................
Receivable floating rate/payable fixed rate ..........................................
Receivable floating rate/payable floating rate ......................................
3,097,651
2,649,874
396,830,384
184,255,645
186,042,853
26,416,803
—
—
316,834,888
150,002,766
148,516,797
18,223,607
Interest rate swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
2,921,053
2,404,120
Caps:
Sold ....................................................................................................
Bought ...............................................................................................
13,771,179
7,023,311
Floors:
Sold ...................................................................................................
Bought ...............................................................................................
Other:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
212,166
154,884
171,867
2,310,792
/
1,712,745
1,656,899
7,555,232
4,411,178
143,963
133,779
139,814
1,698,266
/
461
(507)
68,978
6,851,752
(6,780,304)
(7,528)
711
11,641
(624)
(2,553)
(3,534)
4,009
461
(507)
68,978
6,851,752
(6,780,304)
(7,528)
711
11,641
(624)
(2,553)
(3,534)
4,009
22,927
(6,433)
¥ 94,697
22,927
(6,433)
¥ 94,697
111
SMFGNotes to Consolidated Financial StatementsSMFG 2013
March 31
Listed
Interest rate futures:
Millions of yen
2012
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 13,701,646
12,963,619
¥ 2,323,383
1,931,357
¥ (9,067)
9,046
¥ (9,067)
9,046
Interest rate options:
Sold ....................................................................................................
Bought ...............................................................................................
16,413
49,239
—
—
(1)
5
(1)
5
Over-the-counter
Forward rate agreements:
Sold ....................................................................................................
Bought ...............................................................................................
Interest rate swaps: .................................................................................
Receivable fixed rate/payable floating rate ..........................................
Receivable floating rate/payable fixed rate ..........................................
Receivable floating rate/payable floating rate ......................................
4,433,489
4,386,457
369,468,218
169,758,863
173,687,207
25,888,092
37,687
68,390
281,215,701
132,573,198
132,110,404
16,402,974
Interest rate swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
4,070,533
3,114,421
2,032,320
1,987,178
Caps:
Sold ....................................................................................................
Bought ...............................................................................................
15,725,631
6,947,188
11,272,029
3,066,687
Floors:
Sold ...................................................................................................
Bought ...............................................................................................
Other:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
877,557
7,991,968
—
3,589,273
/
250,823
1,984,956
—
1,798,757
/
(166)
(148)
75,045
5,648,845
(5,573,527)
(3,475)
(56,297)
49,318
(6,675)
6,717
(4,549)
4,192
(166)
(148)
75,045
5,648,845
(5,573,527)
(3,475)
(56,297)
49,318
(6,675)
6,717
(4,549)
4,192
—
19,137
¥ 86,557
—
19,137
¥ 86,557
March 31
Listed
Interest rate futures:
Millions of U.S. dollars
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$ 229,466
218,181
$ 52,799
50,072
$ (57)
49
$ (57)
49
Interest rate options:
Sold ....................................................................................................
Bought ...............................................................................................
2,707
121,293
1,317
43,221
(1)
5
(1)
5
Over-the-counter
Forward rate agreements:
Sold ....................................................................................................
Bought ...............................................................................................
Interest rate swaps: .................................................................................
Receivable fixed rate/payable floating rate ..........................................
Receivable floating rate/payable fixed rate ..........................................
Receivable floating rate/payable floating rate ......................................
32,950
28,187
4,221,151
1,959,958
1,978,969
281,000
Interest rate swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
31,072
25,573
Caps:
Sold ....................................................................................................
Bought ...............................................................................................
146,486
74,708
Floors:
Sold ...................................................................................................
Bought ...............................................................................................
Other:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
2,257
1,648
1,828
24,580
/
—
—
3,370,225
1,595,604
1,579,798
193,848
18,219
17,625
80,366
46,922
1,531
1,423
1,487
18,065
/
5
(5)
734
72,883
(72,123)
(80)
8
124
(7)
(27)
(38)
43
5
(5)
734
72,883
(72,123)
(80)
8
124
(7)
(27)
(38)
43
244
(68)
$ 1,007
244
(68)
$ 1,007
Notes: 1. The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.
2. Fair value of transactions listed on exchange is calculated using the closing prices on the Tokyo Financial Exchange and others.
Fair value of OTC transactions is calculated using discounted present value and option pricing models.
112
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(b) Currency derivatives
March 31
Listed
Currency futures:
Millions of yen
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 47,549
21
¥ —
—
¥ 45
0
¥ 45
0
Over-the-counter
Currency swaps .......................................................................................
Currency swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
Forward foreign exchange .......................................................................
Currency options:
Sold ....................................................................................................
Bought ...............................................................................................
Total ......................................................................................................
March 31
Listed
Currency futures:
21,453,976
14,141,154
(4,479)
(21,243)
422,405
809,571
42,212,725
2,770,832
2,651,869
/
271,989
478,117
3,549,857
1,481,667
1,363,754
/
(3,142)
8,197
64,824
(179,925)
181,758
¥ 67,277
(3,142)
8,197
64,824
(179,925)
181,758
¥ 50,513
Millions of yen
2012
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 295,297
1,119,349
¥ —
—
¥ —
—
¥ —
—
Over-the-counter
Currency swaps .......................................................................................
Currency swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
Forward foreign exchange .......................................................................
Currency options:
Sold ....................................................................................................
Bought ...............................................................................................
Total ......................................................................................................
March 31
Listed
Currency futures:
19,742,032
12,527,350
(396,973)
(38,094)
654,616
702,295
36,189,143
2,904,319
2,744,179
/
473,930
530,318
2,989,559
1,623,064
1,504,605
/
(16,082)
27,032
84,518
(229,554)
315,643
¥(215,415)
Millions of U.S. dollars
2013
(16,082)
27,032
84,518
(229,554)
315,643
¥143,463
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$ 506
0
$ —
—
$ 0
0
Over-the-counter
Currency swaps .......................................................................................
Currency swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
Forward foreign exchange .......................................................................
Currency options:
Sold ....................................................................................................
Bought ...............................................................................................
Total ......................................................................................................
228,210
150,422
4,493
8,612
449,024
29,474
28,208
/
2,893
5,086
37,760
15,761
14,506
/
(48)
(33)
87
690
(1,914)
1,933
$ 716
Notes: 1. The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.
2. Fair value is calculated using discounted present value and option pricing models.
$ 0
0
(226)
(33)
87
690
(1,914)
1,933
$ 537
113
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(c) Equity derivatives
March 31
Listed
Equity price index futures:
Millions of yen
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥302,369
94,137
Equity price index options:
Sold ....................................................................................................
Bought ...............................................................................................
24,887
17,906
Over-the-counter
Equity options:
Sold ....................................................................................................
Bought ...............................................................................................
206,603
210,013
Equity index forward contracts:
Sold ....................................................................................................
Bought ...............................................................................................
Equity index swaps:
Receivable equity index/payable short-term floating rate ....................
Receivable short-term floating rate/payable equity index ....................
Total .......................................................................................................
—
16,984
13,650
21,885
/
¥ —
—
4,350
1,250
206,351
204,754
—
—
12,000
19,485
/
¥ (9,376)
1,391
(860)
436
(47,769)
47,653
—
745
(101)
84
¥ (7,796)
¥ (9,376)
1,391
(860)
436
(47,769)
47,653
—
745
(101)
84
¥ (7,796)
March 31
Listed
Equity price index futures:
Millions of yen
2012
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥298,239
71,550
¥ —
—
¥ (6,384)
913
¥ (6,384)
913
Equity price index options:
Sold ....................................................................................................
Bought ...............................................................................................
390
240
—
—
(1)
2
(1)
2
Over-the-counter
Equity options:
Sold ....................................................................................................
Bought ...............................................................................................
194,646
197,500
192,842
191,432
Equity index forward contracts:
Sold ....................................................................................................
Bought ...............................................................................................
Equity index swaps:
Receivable equity index/payable short-term floating rate ....................
Receivable short-term floating rate/payable equity index ....................
Total .......................................................................................................
—
21,965
8,795
9,495
/
—
—
7,295
7,895
/
(49,023)
49,205
—
822
(154)
152
¥ (4,467)
(49,023)
49,205
—
822
(154)
152
¥ (4,467)
114
SMFGNotes to Consolidated Financial StatementsSMFG 2013 March 31
Listed
Equity price index futures:
Millions of U.S. dollars
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
Equity price index options:
Sold ....................................................................................................
Bought ...............................................................................................
$3,216
1,001
265
190
Over-the-counter
Equity options:
Sold ....................................................................................................
Bought ...............................................................................................
2,198
2,234
Equity index forward contracts:
Sold ....................................................................................................
Bought ...............................................................................................
Equity index swaps:
Receivable equity index/payable short-term floating rate ....................
Receivable short-term floating rate/payable equity index ....................
Total .......................................................................................................
—
181
145
233
/
$ —
—
46
13
2,195
2,178
—
—
128
207
/
$(100)
15
(9)
5
(508)
507
—
8
(1)
1
$ (83)
$(100)
15
(9)
5
(508)
507
—
8
(1)
1
$ (83)
Notes: 1. The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.
2. Fair value of transactions listed on exchange is calculated using the closing prices on the Tokyo Stock Exchange and others.
Fair value of OTC transactions is calculated using option pricing models.
(d) Bond derivatives
March 31
Listed
Bond futures:
Millions of yen
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥4,093,218
3,875,544
¥ —
—
¥(28,436)
23,993
¥(28,436)
23,993
Bond futures options:
Sold ....................................................................................................
Bought ...............................................................................................
57,278
26,980
—
—
(145)
2
(145)
2
Over-the-counter
Bond options:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
138,870
198,900
/
—
104,126
/
(102)
558
¥ (4,130)
(102)
558
¥ (4,130)
March 31
Listed
Bond futures:
Millions of yen
2012
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥2,804,083
2,565,575
Bond futures options:
Sold ....................................................................................................
Bought ...............................................................................................
92,483
181,010
Over-the-counter
Forward bond agreements:
Sold ....................................................................................................
Bought ...............................................................................................
Bond options:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
1,150
2,924
38,894
38,894
/
¥—
—
—
—
—
—
—
—
/
¥(1,426)
1,791
¥(1,426)
1,791
35
(53)
126
30
35
(53)
126
30
(53)
115
¥ 566
(53)
115
¥ 566
115
SMFGNotes to Consolidated Financial StatementsSMFG 2013
March 31
Listed
Bond futures:
Millions of U.S. dollars
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$43,540
41,225
Bond futures options:
Sold ....................................................................................................
Bought ...............................................................................................
609
287
Over-the-counter
Bond options:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
1,477
2,116
/
$ —
—
—
—
—
1,108
/
$(302)
255
(2)
0
(1)
6
$ (44)
$(302)
255
(2)
0
(1)
6
$ (44)
Notes: 1. The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.
2. Fair value of transactions listed on exchange is calculated using the closing prices on the Tokyo Stock Exchange and others.
Fair value of OTC transactions is calculated using discounted present value and option pricing models.
(e) Commodity derivatives
March 31
Listed
Commodity futures:
Millions of yen
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 2,472
913
¥ —
—
¥ (84)
43
¥ (84)
43
Over-the-counter
Commodity swaps:
Receivable fixed price/payable floating price.......................................
Receivable floating price/payable fixed price.......................................
Receivable floating price/payable floating price ..................................
Commodity options:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
115,493
95,861
11,303
12,132
3,559
/
85,791
69,325
9,556
9,191
2,832
/
(18,951)
37,496
(333)
(99)
109
¥18,181
(18,951)
37,496
(333)
(99)
109
¥18,181
March 31
Listed
Commodity futures:
Millions of yen
2012
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 5,949
5,788
¥ —
—
¥ 107
(116)
¥ 107
(116)
Over-the-counter
Commodity swaps:
Receivable fixed price/payable floating price.......................................
Receivable floating price/payable fixed price.......................................
Receivable floating price/payable floating price ..................................
Commodity options:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
139,982
111,479
13,822
12,779
4,929
/
117,754
91,310
13,014
10,821
4,177
/
(29,523)
57,246
1,500
(223)
58
¥29,049
(29,523)
57,246
1,500
(223)
58
¥29,049
116
SMFGNotes to Consolidated Financial StatementsSMFG 2013
March 31
Listed
Commodity futures:
Millions of U.S. dollars
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$ 26
10
Over-the-counter
Commodity swaps:
Receivable fixed price/payable floating price.......................................
Receivable floating price/payable fixed price.......................................
Receivable floating price/payable floating price ..................................
Commodity options:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
1,229
1,020
120
129
38
/
$ —
—
913
737
102
98
30
/
$ (1)
0
(202)
399
(4)
(1)
1
$193
$ (1)
0
(202)
399
(4)
(1)
1
$193
Notes: 1. The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.
2. Fair value of transactions listed on exchange is calculated using the closing prices on the New York Mercantile Exchange and others.
Fair value of OTC transactions is calculated based on factors such as price of the relevant commodity and contract term.
3. Commodity derivatives are transactions on fuel and metal.
(f) Credit derivative transactions
March 31
Over-the-counter
Credit default options:
Millions of yen
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
¥876,007
930,144
/
¥622,577
668,544
/
¥ (744)
(444)
¥(1,189)
¥ (744)
(444)
¥(1,189)
March 31
Over-the-counter
Credit default options:
Millions of yen
2012
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
¥793,663
783,152
/
¥649,116
575,684
/
¥(18,420)
19,385
¥ 964
¥(18,420)
19,385
¥ 964
March 31
Over-the-counter
Credit default options:
Millions of U.S. dollars
2013
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
$9,318
9,894
/
$6,622
7,111
/
$ (8)
(5)
$(13)
$ (8)
(5)
$(13)
Notes: 1. The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.
2. Fair value is calculated using discounted present value and option pricing models.
3. “Sold” represents transactions in which the credit risk is accepted; “Bought” represents transactions in which the credit risk is transferred.
117
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(2) Derivative transactions to which the hedge accounting method is applied
The following tables set forth the contract amount or the amount equivalent to the principal, fair value and calculation method of the
relevant commodities by category with respect to derivative transactions to which the hedge accounting method is applied at the end of
the fiscal year. Contract amount does not indicate the market risk relating to derivative transactions.
(a) Interest rate derivatives
March 31
Hedge accounting method
Deferral hedge method
Interest futures:
Type of derivative
Sold .................................................................
Bought ............................................................
Interest rate swaps: ..............................................
Receivable fixed rate/payable floating rate .......
Receivable floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Interest rate swaptions:
Sold .................................................................
Bought ............................................................
Caps:
Sold .................................................................
Bought ............................................................
Principal items hedged
Interest-earning/bearing
financial assets/liabilities
such as loans and bills
discounted, other securi-
ties (bonds), deposits and
negotiable certificates of
deposits
Recognition of gain or loss
on the hedging instrument
Special treatment for
interest rate swaps
Interest rate swaps: .............................................. Loans and bills discounted
Receivable floating rate/payable fixed rate .......
Interest rate swaps: .............................................. Loans and bills discounted;
Receivable fixed rate/payable floating rate .......
Receivable floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Total ....................................................................
borrowed money; bonds
payable
March 31
Hedge accounting method
Deferral hedge method
Interest futures:
Type of derivative
Sold .................................................................
Bought ............................................................
Interest rate swaps: ..............................................
Receivable fixed rate/payable floating rate .......
Receivable floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Interest rate swaptions:
Sold .................................................................
Bought ............................................................
Caps:
Sold .................................................................
Bought ............................................................
Floors:
Sold .................................................................
Bought ............................................................
Principal items hedged
Interest-earning/bearing
financial assets/liabilities
such as loans and bills
discounted, other securi-
ties (bonds), deposits and
negotiable certificates of
deposits
Recognition of gain or loss
on the hedging instrument
Special treatment for
interest rate swaps
Interest rate swaps: .............................................. Loans and bills discounted
Receivable floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Interest rate swaps: .............................................. Loans and bills discounted;
Receivable fixed rate/payable floating rate .......
Receivable floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Total ....................................................................
borrowed money; bonds
payable
Millions of yen
2013
Contract amount
Total
Over 1 year
Fair value
¥ 94,056
1,985,000
39,492,082
25,598,136
13,877,319
16,626
¥ 94,056
—
36,189,984
23,250,742
12,922,615
16,626
¥ (18)
675
49,356
601,178
(551,782)
(39)
11,222
—
4,112
4,112
83,607
83,607
98,437
1,000
89,437
8,000
/
11,222
—
4,112
4,112
76,029
76,029
51,391
—
46,391
5,000
/
262
—
251
(251)
(6,879)
(6,879)
(Note 3)
¥ 43,395
Millions of yen
2012
Contract amount
Total
Over 1 year
Fair value
¥ 739,170
7,306,784
36,107,314
24,074,085
12,003,883
29,345
¥ — ¥ (146)
(96)
27,467
443,546
(416,369)
290
356,484
29,296,886
18,722,477
10,565,063
9,345
330,000
—
330,000
—
3,340
3,340
—
7,850
1,641
1,361
280
218,688
3,000
193,688
22,000
/
3,340
3,340
—
—
—
—
—
137,515
1,000
125,515
11,000
/
2,719
—
265
(265)
—
0
(43)
(39)
(3)
(Note 3)
¥ 29,900
118
SMFGNotes to Consolidated Financial StatementsSMFG 2013 March 31
Hedge accounting method
Deferral hedge method
Interest futures:
Type of derivative
Sold .................................................................
Bought ............................................................
Interest rate swaps: ..............................................
Receivable fixed rate/payable floating rate .......
Receivable floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Interest rate swaptions:
Sold .................................................................
Bought ............................................................
Caps:
Sold .................................................................
Bought ............................................................
Principal items hedged
Interest-earning/bearing
financial assets/liabilities
such as loans and bills
discounted, other securi-
ties (bonds), deposits and
negotiable certificates of
deposits
Recognition of gain or loss
on the hedging instrument
Special treatment for
interest rate swaps
Interest rate swaps: .............................................. Loans and bills discounted
Receivable floating rate/payable fixed rate .......
Interest rate swaps: .............................................. Loans and bills discounted;
Receivable fixed rate/payable floating rate .......
Receivable floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Total ....................................................................
borrowed money; bonds
payable
Millions of U.S. dollars
2013
Contract amount
Total
Over 1 year
Fair value
$ 1,000
21,115
420,084
272,292
147,615
177
$ 1,000
—
384,959
247,322
137,460
177
119
—
44
44
889
889
1,047
11
951
85
/
119
—
44
44
809
809
547
—
493
53
/
$ (0)
7
525
6,395
(5,869)
(0)
3
—
3
(3)
(73)
(73)
(Note 3)
$ 462
Notes: 1. SMFG applies deferred hedge accounting stipulated in “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in
Banking Industry” (JICPA Industry Audit Committee Report No. 24).
2. Fair value of transactions listed on exchange is calculated using the closing prices on the Tokyo Financial Exchange and others.
Fair value of OTC transactions is calculated using discounted present value and option pricing models.
3. Interest rate swap amounts measured by the special treatment for interest rate swaps are treated with the borrowed money or other transaction that is subject to the
hedge. Therefore such fair value is included in the fair value of the relevant transaction subject to the hedge in “29. Financial Instruments.”
(b) Currency derivatives
March 31
Hedge accounting method
Deferral hedge method
Recognition of gain or loss
on the hedging instrument
Allocation method
Type of derivative
Principal items hedged
Currency swap ..................................................... Foreign currency denomi-
Forward foreign exchange ....................................
nated loans and bills
discounted; other securities
(bonds); deposits; foreign
currency exchange, etc.
Currency swaps. ................................................... Loans and bills discounted;
Forward foreign exchange ....................................
Currency swap ..................................................... Other securities (bonds);
Forward foreign exchange ....................................
Total ....................................................................
foreign currency exchange
borrowed money
Millions of yen
2013
Contract amount
Total
¥4,439,554
18,153
Over 1 year
¥2,856,987
—
Fair value
¥(180,171)
(492)
31,665
277,155
10,897
3,179
/
28,208
—
9,087
3,179
/
(2,342)
(2,671)
(Note 3)
¥(185,677)
119
SMFGNotes to Consolidated Financial StatementsSMFG 2013
March 31
Hedge accounting method
Deferral hedge method
Type of derivative
Principal items hedged
Currency swap ..................................................... Foreign currency denomi-
Forward foreign exchange ....................................
nated loans and bills
discounted; other securities
(bonds); deposits; foreign
currency exchange, etc.
Millions of yen
2012
Contract amount
Total
¥3,315,230
244,547
Over 1 year
¥2,666,423
—
Fair value
¥278,690
211
Recognition of gain or loss
on the hedging instrument
Allocation method
Currency swap ..................................................... Deposits; borrowed
36,306
32,133
(383)
money; bonds payable
Currency swap ..................................................... Other securities (bonds);
Forward foreign exchange ....................................
Total ....................................................................
borrowed money
70,320
3,179
/
8,465
3,179
/
(Note 3)
¥278,518
March 31
Hedge accounting method
Deferral hedge method
Recognition of gain or loss
on the hedging instrument
Allocation method
Type of derivative
Principal items hedged
Currency swap ..................................................... Foreign currency denomi-
Forward foreign exchange ....................................
nated loans and bills
discounted; other securities
(bonds); deposits; foreign
currency exchange, etc.
Currency swap ..................................................... Loans and bills discounted;
Forward foreign exchange ....................................
Currency swap ..................................................... Other securities (bonds);
Forward foreign exchange ....................................
Total ....................................................................
foreign currency exchange
borrowed money
Millions of U.S. dollars
2013
Contract amount
Total
$47,224
193
Over 1 year
$30,390
—
Fair value
$(1,917)
(5)
337
2,948
116
34
/
300
—
97
34
/
(25)
(28)
(Note 3)
$(1,975)
Notes: 1. SMFG applies deferred hedge accounting stipulated in “Treatment for Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in
Banking Industry” (JICPA Industry Audit Committee Report No. 25).
2. Fair value is calculated using discounted present value.
3. Forward foreign exchange amounts treated by the allocation method are treated with the other securities or other transaction that is subject to the hedge. Therefore
such fair value is included in the fair value of the relevant transaction subject to the hedge in “29. Financial Instruments.”
(c) Equity derivatives
March 31
Hedge accounting method
Recognition of gain or loss
on the hedging instrument
March 31
Hedge accounting method
Recognition of gain or loss
on the hedging instrument
March 31
Hedge accounting method
Recognition of gain or loss
on the hedging instrument
Millions of yen
2013
Contract amount
Type of derivative
Equity price index swaps:
Principal items hedged
Other securities (equity)
Total
Over 1 year
Fair value
Receivable equity index/payable floating rate ...
Receivable floating rate/payable equity index ...
Total ....................................................................
¥ —
158,716
/
¥ —
66,668
/
¥ —
(24,100)
¥(24,100)
Type of derivative
Equity price index swaps:
Principal items hedged
Other securities (equity)
Total
Over 1 year
Fair value
Millions of yen
2012
Contract amount
Receivable equity index/payable floating rate ...
Receivable floating rate/payable equity index ...
Total ....................................................................
Type of derivative
Equity price index swaps:
Principal items hedged
Other securities (equity)
Receivable equity index/payable floating rate ...
Receivable floating rate/payable equity index ...
Total ....................................................................
¥ —
13,056
/
¥ —
9,175
/
¥ —
(335)
¥(335)
Millions of U.S. dollars
2013
Contract amount
Total
Over 1 year
Fair value
$ —
1,688
/
$ —
709
/
$ —
(256)
$(256)
Note: Fair value is calculated using discounted present value.
120
SMFGNotes to Consolidated Financial StatementsSMFG 2013
32. Stock Options
1. Share-based compensation expenses which were accounted for as general and administrative expenses in the fiscal years ended March 31,
2013 and 2012 are as follows:
Year ended March 31
Share-based compensation expenses .................................................................
2. Amount of profit by non-exercise of stock options in the fiscal year
Year ended March 31
Other income ..................................................................................................
3. Outline of stock options and changes is as follows:
(1) SMFG
(a) Outline of stock options
Date of resolution
Title and number of grantees .....
June 27, 2002
Directors and employees of
SMFG and SMBC: 677
Number of stock options*1 ......
Grant date ...............................
Condition for vesting ...............
Common shares: 162,000*2
August 30, 2002
N.A.
Requisite service period ...........
N.A.
Exercise period ........................
June 28, 2004 to June 27, 2012
Date of resolution
Title and number of grantees .....
Number of stock options*1 ......
Grant date ...............................
Condition for vesting ...............
Requisite service period ...........
July 29, 2011
Directors of SMFG: 9
Corporate auditors of SMFG: 3
Executive officers of SMFG: 2
Directors, corporate auditors,
executive officers of SMBC: 71
Common shares: 268,200
August 16, 2011
Stock acquisition right holders may exercise
stock acquisition rights from the day when they
are relieved of their positions either as a director,
corporate auditor or executive officer of SMFG
and SMBC.
June 29, 2011 to the closing of the ordinary
general meeting of shareholders of SMFG for the
fiscal year ended March 31, 2012.
August 16, 2011 to August 15, 2041
Exercise period ........................
*1 Reported in terms of shares of stock.
*2 Reported in consideration of the 100-for-1 stock split implemented on January 4, 2009.
Millions of yen
Millions of yen
2012
¥431
2012
¥—
2013
¥584
2013
¥10
Millions of
U.S. dollars
2013
$6
Millions of
U.S. dollars
2013
$0
July 28, 2010
Directors of SMFG: 8
Corporate auditors of SMFG: 3
Executive officers of SMFG: 2
Directors, corporate auditors,
executive officers of SMBC: 69
Common shares: 102,600
August 13, 2010
Stock acquisition right holders may exercise
stock acquisition rights from the day when they
are relieved of their positions either as a director,
corporate auditor or executive officer of SMFG
and SMBC.
June 29, 2010 to the closing of the ordinary
general meeting of shareholders of SMFG for the
fiscal year ended March 31, 2011.
August 13, 2010 to August 12, 2040
July 30, 2012
Directors of SMFG: 9
Corporate auditors of SMFG: 3
Executive officers of SMFG: 2
Directors, corporate auditors,
executive officers of SMBC: 71
Common shares: 280,500
August 15, 2012
Stock acquisition right holders may exercise
stock acquisition rights from the day when they
are relieved of their positions either as a director,
corporate auditor or executive officer of SMFG
and SMBC.
June 28, 2012 to the closing of the ordinary
general meeting of shareholders of SMFG for the
fiscal year ended March 31, 2013.
August 15, 2012 to August 14, 2042
121
SMFGNotes to Consolidated Financial StatementsSMFG 2013 (b) Stock options granted and changes
Number of stock options*
Date of resolution
Before vested
Previous fiscal year-end ..................
Granted .........................................
Forfeited ........................................
Vested............................................
Outstanding ..................................
After vested
Previous fiscal year-end ..................
Vested............................................
Exercised .......................................
Forfeited ........................................
Exercisable .....................................
* Reported in terms of shares of stock.
Price information (Yen)
Date of resolution
Exercise price .....................................
Average exercise price ........................
Fair value at the grant date ................
June 27, 2002
July 28, 2010
July 29, 2011
July 30, 2012
—
—
—
—
—
108,100
—
—
108,100
—
74,400
—
—
23,600
50,800
25,800
23,600
1,200
—
48,200
260,300
—
1,600
14,000
244,700
5,900
14,000
1,900
—
18,000
—
280,500
1,100
2,200
277,200
—
2,200
—
—
2,200
June 27, 2002
July 28, 2010
July 29, 2011
July 30, 2012
¥6,649
—
—
¥ 1
3,235
2,215
¥ 1
2,986
1,872
¥ 1
—
2,042
(c) Valuation technique used for valuating fair value of stock options
Stock options granted in the fiscal year ended March 31, 2013 were valued using the Black-Scholes option pricing model and the
principal parameters were as follows:
Date of resolution
Expected volatility *1 ........................................................................
Average expected life *2 .....................................................................
Expected dividends *3 ........................................................................
Risk-free interest rate *4 ....................................................................
*1 Expected volatility is calculated based on the closing price of common shares of SMFG on each trading day in the 4 years between August 16, 2008 and August 15, 2012.
*2 The average expected life could not be estimated rationally due to insufficient amount of data.
July 30, 2012
46.26%
4 years
¥100 per share
0.14%
Therefore, it was estimated based on average assumption periods of officers of SMFG and SMBC.
*3 Expected dividends are based on the expected dividends on common stock for the fiscal year ended March 31, 2013 of the date of grant.
*4 Japanese government bond yield corresponding to the average expected life.
(d) Method of estimating number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock
options that will be forfeited in the future.
(2) Kansai Urban Banking Corporation
(a) Outline of stock options
Date of resolution
Title and number of grantees ...........................................
Number of stock options* ................................................
June 27, 2002 June 27, 2003 June 29, 2004 June 29, 2005 June 29, 2006
Directors and
employees
44
Directors and
employees
65
Directors and
employees
174
Directors and
employees
183
Directors
9
Common shares
234,000
Common shares
306,000
Common shares
399,000
Common shares
464,000
Common shares
162,000
Grant date ....................................................................... July 31, 2002
Condition for vesting .......................................................
Requisite service period ...................................................
Exercise period ................................................................
N.A.
N.A.
June 28, 2004
to June 27,
2012
July 31, 2003
July 30, 2004
July 29, 2005
July 31, 2006
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
June 28, 2005
to June 27,
2013
June 30, 2006
to June 29,
2014
June 30, 2007
to June 29,
2015
June 30, 2008
to June 29,
2016
122
SMFGNotes to Consolidated Financial StatementsSMFG 2013
Date of resolution
Title and number of grantees ..........................................
June 29, 2006 June 28, 2007 June 28, 2007 June 27, 2008 June 26, 2009
Officers not
Officers not
Directors 11
doubling as
doubling as
Officers not
directors 14
directors 14
doubling as
Employees 48
Employees 46
directors 14
Employees 57
Directors 9
Officers not
doubling as
directors 16
Employees 45
Directors
10
Number of stock options* ................................................
Common shares
115,000
Common shares
174,000
Common shares
112,000
Common shares
289,000
Common shares
350,000
Grant date ....................................................................... July 31, 2006
Condition for vesting .......................................................
Requisite service period ...................................................
Exercise period ................................................................
N.A.
N.A.
June 30, 2008
to June 29,
2016
July 31, 2007
July 31, 2007
July 31, 2008
July 31, 2009
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
June 29, 2009
to June 28,
2017
June 29, 2009
to June 28,
2017
June 28, 2010
to June 27,
2018
June 27, 2011
to June 26,
2019
* Reported in terms of shares of stock.
(b) Stock options granted and changes
Number of stock options*
Date of resolution
Before vested
June 27, 2002 June 27, 2003 June 29, 2004 June 29, 2005 June 29, 2006
Previous fiscal year-end ................................................
Granted .......................................................................
Forfeited ......................................................................
Vested..........................................................................
Outstanding ................................................................
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
After vested
Previous fiscal year-end ................................................ 106,000
—
Vested..........................................................................
—
Exercised .....................................................................
Forfeited ...................................................................... 106,000
Exercisable ...................................................................
192,000
—
—
26,000
— 166,000
285,000
—
—
40,000
245,000
392,000
—
—
58,000
334,000
162,000
—
—
32,000
130,000
Date of resolution
Before vested
June 29, 2006 June 28, 2007 June 28, 2007 June 27, 2008 June 26, 2009
Previous fiscal year-end ................................................
Granted .......................................................................
Forfeited ......................................................................
Vested..........................................................................
Outstanding ................................................................
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
After vested
Previous fiscal year-end ................................................ 115,000
—
Vested..........................................................................
—
Exercised .....................................................................
29,000
Forfeited ......................................................................
86,000
Exercisable ...................................................................
174,000
—
—
16,000
158,000
112,000
—
—
7,000
105,000
289,000
—
—
—
289,000
350,000
—
—
—
350,000
* Reported in terms of shares of stock.
Price information (Yen)
Date of resolution
Exercise price ...................................................................
Average exercise price ......................................................
Fair value at the grant date ..............................................
Date of resolution
Exercise price ...................................................................
Average exercise price ......................................................
Fair value at the grant date ..............................................
June 27, 2002 June 27, 2003 June 29, 2004 June 29, 2005 June 29, 2006
¥202
—
—
¥490
—
138
¥179
—
—
¥313
—
—
¥131
—
—
June 29, 2006 June 28, 2007 June 28, 2007 June 27, 2008 June 26, 2009
¥461
—
96
¥302
—
37
¥490
—
138
¥193
—
51
¥461
—
96
(c) Method of estimating number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock
options that will be forfeited in the future.
123
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(3) THE MINATO BANK, LTD. (“MINATO”)
(a) Outline of stock options
Date of resolution
Title and number of grantees ...............
Number of stock options* ..................
Grant date .........................................
Condition for vesting .........................
Requisite service period .....................
Exercise period ..................................
* Reported in terms of shares of stock.
(b) Stock options granted and changes
Number of stock options*
Date of resolution
Before vested
Previous fiscal year-end ..................
Granted .........................................
Forfeited ........................................
Vested............................................
Outstanding ..................................
After vested
Previous fiscal year-end ..................
Vested............................................
Exercised .......................................
Forfeited ........................................
Exercisable .....................................
* Reported in terms of shares of stock.
June 28, 2012
Directors: 7,
Officers: 12
Common shares: 368,000
July 20, 2012
Stock acquisition right holders may exercise
stock acquisition rights from the day when
they are relieved of their positions either as a
director or executive officer of MINATO.
June 28, 2012 to the closing of the ordinary
general meeting of shareholders of MINATO for
the fiscal year ended March 31, 2013.
July 21, 2012 to July 20, 2042
June 28, 2012
—
368,000
12,000
44,000
312,000
—
44,000
—
—
44,000
Price information (Yen)
Date of resolution
Exercise price .....................................
Average exercise price ........................
Fair value at the grant date ................
June 28, 2012
¥ 1
—
132
(c) Valuation technique used for valuating fair value of stock options
Stock options granted in the fiscal year were valuated using the following valuation technique.
- Valuation technique: Black-Scholes option-pricing model
- Principal parameters used in the option-pricing model
Date of resolution
Expected volatility *1 ........................................................................
Average expected life *2 .....................................................................
Expected dividends *3 ........................................................................
Risk-free interest rate *4 ....................................................................
*1 Calculated based on the actual stock prices during 2 years from July 21, 2010 to July 20, 2012.
*2 The average expected life could not be estimated rationally due to insufficient amount of data.
Therefore, it was estimated based on average assumption periods of officers of MINATO.
June 28, 2012
34.34%
2 years
¥5 per share
0.10%
*3 Expected dividends are based on the actual dividends on common stock for the fiscal year ended March 31, 2012.
*4 Japanese government bond yield corresponding to the average expected life.
(d) Method of estimating number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock
options that will be forfeited in the future.
124
SMFGNotes to Consolidated Financial StatementsSMFG 2013 33. Segment Information
Fiscal years ended March 31, 2013 and 2012
1. Outline of reportable segments
SMFG Group’s reportable segment is defined as an operating segment for which discrete financial information is available and reviewed by
the Board of Directors regularly in order to make decisions about resources to be allocated to the segment and assess its performance.
Besides banking business, SMFG Group companies conduct businesses such as leasing, securities, consumer finance, and system develop-
ment and information processing. The primary businesses, “Banking business,” “Leasing,” “Securities services,” and “Consumer finance,” are
separate, reportable segments, and other businesses are aggregated as “Other business.”
“Banking business” includes deposit taking, lending, securities trading and investment, remittance, foreign exchange, bond subscription
agent, trust business, and over-the-counter sales of securities investment trusts and insurance products. SMBC assesses business performance
by classifying businesses into 5 business units based on client segment: Consumer banking unit, Middle market banking unit, Corporate
banking unit, International banking unit and Treasury unit.
SMFG’s consolidated subsidiary, SMBC Consumer Finance Co., Ltd. (formerly Promise Co., Ltd.), became a wholly owned subsidiary fol-
lowing a share exchange that went into effect on April 1, 2012. As a result, certain reportable segment changed during the fiscal year ended
March 31, 2013. Specifically, Consumer finance has been established as a new reportable segment, which includes the formerly Credit card
services segment.
From the fiscal year ended March 31, 2013 onward, the column designating consolidated net business profit for major SMFG Group
companies, excluding SMBC, has been moved from operating income to ordinary profit, and the column designating consolidated net busi-
ness profit for Sumitomo Mitsui Finance and Leasing Co., Ltd. is listed under consolidated operating profit for Sumitomo Mitsui Finance and
Leasing Co., Ltd.
Information on profit and loss amount by reportable segment for the fiscal year ended March 31, 2012 has been formulated based on the
above changes.
2. Method of calculating profit and loss amount by reportable segment
Accounting method applied to the reported business segment is the same as described in “Significant Accounting Policies.” However, profit or
loss of the equity method affiliates is recorded in “Other profit or loss” in the amount of ordinary profit multiplied by the ownership ratio.
SMFG does not assess assets by business segment.
3. Information on profit and loss amount by reportable segment
Millions of yen
Banking business
Consumer
banking unit
Year ended March 31, 2013
Gross profit ........................... ¥374,927
307,746
67,181
(284,389)
(26,893)
—
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit ..................... ¥ 90,538
Sumitomo Mitsui
Finance and
Leasing Company,
Limited
Year ended March 31, 2013
Gross profit ........................... ¥114,814
40,825
73,988
(51,722)
(4,003)
(4,086)
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit ..................... ¥ 59,006
Middle market
banking unit
¥412,200
236,170
176,030
(216,726)
(22,625)
—
Corporate
banking unit
¥208,013
128,212
79,801
(39,616)
(5,603)
—
SMBC
International
banking unit
¥240,516
141,958
98,558
(72,920)
(8,928)
—
Treasury
unit
¥295,304
125,485
169,819
(20,997)
(3,972)
—
Subtotal
Head office
account
¥ 9,135 ¥1,540,095
971,202
568,892
(727,736)
(79,240)
31,631
(22,496)
(93,088)
(11,219)
—
Others
Total
¥258,466 ¥1,798,561
1,127,159
155,956
671,402
102,509
(876,944)
(149,207)
(89,702)
(10,462)
(30,334)
— (30,334)
¥195,474
¥168,397
¥167,596
¥274,307
¥(83,953) ¥ 812,358
¥ 78,923 ¥ 891,282
Leasing
Securities services
Millions of yen
Others
¥ 5,544
5,372
171
908
(561)
3,857
Total
¥120,358
46,198
74,160
(50,813)
(4,565)
(228)
SMBC
Nikko
Securities
Inc.
¥268,913
(720)
269,634
(194,920)
(2,826)
(557)
SMBC
Friend
Securities
Co., Ltd.
¥59,409
432
58,976
(41,415)
(1,861)
(3)
Others
¥13,130
232
12,897
(10,933)
(1,249)
(1,470)
Total
¥341,452
(55)
341,508
(247,269)
(5,937)
(2,030)
¥10,310
¥ 69,316
¥ 73,435
¥17,990
¥ 726
¥ 92,152
125
SMFGNotes to Consolidated Financial StatementsSMFG 2013
Millions of yen
Sumitomo
Mitsui Card
Company,
Limited
¥183,050
15,477
167,573
(132,594)
(9,796)
(5,657)
Consumer finance
SMBC
Consumer
Finance
Co., Ltd.
¥165,777
117,628
48,148
(66,198)
(2,720)
(47,715)
Cedyna
Financial
Corporation
¥153,542
29,422
124,120
(118,184)
(9,221)
(21,704)
Others
¥24,132
1,486
22,645
(14,252)
(1,733)
1,996
Total
¥526,503
164,014
362,488
(331,229)
(23,471)
(73,081)
Other
Grand total
business
¥15,525 ¥2,802,402
61,584 1,398,901
(46,058) 1,403,501
61,799 (1,444,457)
(134,641)
(10,964)
(191,770)
(86,095)
¥ 44,799
¥ 13,653
¥ 51,863
¥11,876
¥122,192
¥ (8,770) ¥1,166,174
Year ended March 31, 2013
Gross profit ...........................
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit .....................
Millions of yen
Banking business
Consumer
banking unit
Year ended March 31, 2012
Gross profit ........................... ¥383,666
326,923
56,743
(289,506)
(27,400)
—
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit ..................... ¥ 94,160
Middle market
banking unit
¥422,825
256,800
166,025
(222,756)
(23,177)
—
Corporate
banking unit
¥212,650
136,592
76,058
(38,214)
(5,558)
—
SMBC
International
banking unit
¥197,436
111,625
85,811
(64,941)
(7,102)
—
Treasury
unit
¥319,333
123,120
196,213
(19,206)
(3,443)
—
Subtotal
Head office
account
¥ (3,398) ¥1,532,511
956,878
575,632
(719,495)
(75,503)
1,818
(5,217)
(84,872)
(8,823)
—
Others
Total
¥231,326 ¥1,763,837
1,113,505
156,627
650,331
74,698
(851,257)
(131,761)
(85,858)
(10,354)
(20,529)
— (20,529)
¥200,069
¥174,436
¥132,495
¥300,127
¥(88,271) ¥ 813,015
¥ 79,035 ¥ 892,050
Leasing
Securities services
Millions of yen
Sumitomo Mitsui
Finance and
Leasing Company,
Limited
¥99,062
58,813
40,249
(43,208)
(3,486)
7,011
Others
¥3,059
3,477
(417)
611
(410)
1,289
Total
¥102,122
62,290
39,831
(42,597)
(3,896)
8,300
SMBC
Nikko
Securities
Inc.
¥222,116
(1,674)
223,790
(180,076)
(3,044)
(1,736)
SMBC
Friend
Securities
Co., Ltd.
¥47,981
503
47,477
(39,083)
(1,862)
(7)
Others
¥7,771
423
7,348
(5,356)
(655)
(797)
Total
¥277,869
(747)
278,617
(224,516)
(5,561)
(2,541)
¥62,865
¥4,960
¥ 67,825
¥ 40,303
¥ 8,890
¥1,617
¥ 50,811
Year ended March 31, 2012
Gross profit ...........................
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit .....................
Millions of yen
Consumer finance
Sumitomo
Mitsui Card
Company,
Limited
Cedyna
Financial
Corporation
Year ended March 31, 2012
Gross profit ........................... ¥179,328 ¥160,083
36,379
123,704
(120,545)
(9,888)
(67,198)
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit ..................... ¥ 43,151 ¥ (27,660)
18,544
160,784
(126,589)
(8,839)
(9,587)
126
Total
Others
¥96,787 ¥436,199
111,634
324,564
(291,861)
(23,053)
(134,622)
56,710
40,076
(44,726)
(4,325)
(57,836)
Other
business
Grand total
¥30,053 ¥2,610,082
62,827 1,349,510
(32,773) 1,260,572
35,705 (1,374,526)
(129,403)
(11,032)
(221,609)
(72,217)
¥ (5,774) ¥ 9,715
¥ (6,457) ¥1,013,946
SMFGNotes to Consolidated Financial StatementsSMFG 2013 Millions of U.S. dollars
Banking business
Year ended March 31, 2013
Gross profit ...........................
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit .....................
Consumer
banking unit
$3,988
3,274
715
(3,025)
(286)
—
Middle market
banking unit
$4,385
2,512
1,872
(2,305)
(241)
—
Corporate
banking unit
$2,213
1,364
849
(421)
(60)
—
SMBC
International
banking unit
$2,558
1,510
1,048
(776)
(95)
—
Treasury
unit
$3,141
1,335
1,806
(223)
(42)
—
Head office
account
$ 97
336
(239)
(990)
(119)
—
Subtotal
$16,382
10,331
6,051
(7,741)
(843)
—
Others
$2,749
1,659
1,090
(1,587)
(111)
(323)
Total
$19,132
11,990
7,142
(9,328)
(954)
(323)
$ 963
$2,079
$1,791
$1,783
$2,918
$(893)
$ 8,641
$ 840
$ 9,481
Sumitomo Mitsui
Finance and
Leasing Company,
Limited
$1,221
434
787
(550)
(43)
(43)
Leasing
Others
$ 59
57
2
10
(6)
41
Millions of U.S. dollars
Securities services
SMBC
Nikko
Securities
Inc.
$2,860
(8)
2,868
(2,073)
(30)
(6)
SMBC
Friend
Securities
Co., Ltd.
$632
5
627
(441)
(20)
(0)
Total
$1,280
491
789
(541)
(49)
(2)
Others
$140
2
137
(116)
(13)
(16)
Total
$3,632
(1)
3,633
(2,630)
(63)
(22)
$ 628
$110
$ 737
$ 781
$191
$ 8
$ 980
Year ended March 31, 2013
Gross profit ...........................
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit .....................
Millions of U.S. dollars
Sumitomo
Mitsui Card
Company,
Limited
$1,947
165
1,783
(1,410)
(104)
(60)
Consumer finance
SMBC
Consumer
Finance
Co., Ltd.
$1,763
1,251
512
(704)
(29)
(508)
Cedyna
Financial
Corporation
$1,633
313
1,320
(1,257)
(98)
(231)
Others
$257
16
241
(152)
(18)
21
Total
$5,600
1,745
3,856
(3,523)
(250)
(777)
Other
business
$165
655
(490)
657
(117)
(916)
Grand total
$29,810
14,880
14,929
(15,365)
(1,432)
(2,040)
$ 477
$ 145
$ 552
$126
$1,300
$ (93)
$12,405
Year ended March 31, 2013
Gross profit ...........................
Interest income ..................
Non-interest income ..........
Expenses ................................
Depreciation ......................
Other profit or loss ................
Consolidated net
business profit .....................
Notes: 1. Consolidated net business profit = SMBC’s nonconsolidated banking profit + SMFG’s nonconsolidated ordinary profit + Other subsidiaries’ ordinary profit (excluding
nonrecurring factors) + Equity method affiliates’ ordinary profit ✕ Ownership ratio – Internal transactions (dividends, etc.)
2. Other profit or loss = Nonoperating profit or loss of consolidated subsidiaries except SMBC + Equity method affiliates’ ordinary profit ✕ Ownership ratio, etc.
3. For the fiscal year ended March 31, 2013, Consolidated net business profit = Consolidated operating profit of each company for Sumitomo Mitsui Finance and Leasing
Company, Limited and SMBC Consumer Finance Co., Ltd., and Consolidated net business profit = Operating profit of each company for SMBC Nikko Securities Inc.,
SMBC Friend Securities Co., Ltd., Sumitomo Mitsui Card Company, Limited, and Cedyna Financial Corporation.
For the fiscal year ended March 31, 2012, Consolidated net business profit = Consolidated operating profit of Sumitomo Mitsui Finance and Leasing Company, Limited
and Consolidated net business profit = Operating profit of each company for SMBC Nikko Securities Inc., SMBC Friend Securities Co., Ltd., Sumitomo Mitsui Card
Company, Limited, and Cedyna Financial Corporation.
4. “Other business” includes profit or loss to be offset as internal transactions between segments.
127
SMFGNotes to Consolidated Financial StatementsSMFG 2013
4. Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on consolidated statements of
income (adjustment of difference)
Year ended March 31
Profit
Consolidated net business profit .....................................................................................................
Total credit cost of SMBC ...............................................................................................................
Losses on stocks of SMBC ...............................................................................................................
Amortization of unrecognized retirement benefit obligation of SMBC ............................................
Ordinary profit of consolidated subsidiaries other than reportable segment .....................................
Amortization of goodwill other than reportable segment ................................................................
Adjustment of profit or loss of equity method affiliates ...................................................................
Others ............................................................................................................................................
Ordinary profit on consolidated statements of income .....................................................................
Millions of yen
2013
¥1,166,174
(19,523)
(35,662)
(23,303)
89,523
(17,964)
(3,952)
(81,545)
¥1,073,745
Millions of
U.S. dollars
2013
$12,405
(208)
(379)
(248)
952
(191)
(42)
(867)
$11,422
Notes: 1. Total credit cost = Write-off of loans + Losses on sales of delinquent loans – Gains on reversal of reserve for possible loan losses – Recoveries of written-off claims
2. Losses on stocks = Gains on sale of stocks – Losses on sale of stocks – Losses on devaluation of stocks
3. Adjustment of profit or loss of equity method affiliates = Equity method affiliates’ net income ✕ Ownership ratio – Equity method affiliates’ ordinary profit ✕ Ownership ratio
Year ended March 31
Profit
Consolidated net business profit .....................................................................................................
Total credit costs of SMBC ..............................................................................................................
Losses on stocks of SMBC ...............................................................................................................
Amortization of unrecognized retirement benefit obligation of SMBC ............................................
Ordinary profit of consolidated subsidiaries other than reportable segment .....................................
Amortization of goodwill other than reportable segment ................................................................
Adjustment of profit or loss of equity method affiliates ...................................................................
Others ............................................................................................................................................
Ordinary profit on consolidated statements of income .....................................................................
Millions of yen
2012
¥1,013,946
(58,647)
(15,153)
(31,632)
81,398
(14,996)
(5,553)
(33,790)
¥ 935,571
Notes: 1. Total credit cost = Provision for reserve for possible loan losses (excluding translation adjustment of general reserve for possible loan losses) + Write-off of loans + Losses on
sales of delinquent loans – Recoveries of written-off clames
2. Losses on stocks = Gains on sale of stocks – Losses on sale of stocks – Losses on devaluation of stocks
3. Adjustment of profit or loss of equity method affiliates = Equity method affiliates’ net income ✕ Ownership ratio – Equity method affiliates’ ordinary profit ✕ Ownership ratio
5. Related information
(1) Business segment information
Year ended March 31, 2013
Ordinary income to external customers
Millions of yen
Millions of U.S. dollars
Banking business .......................................................................................................
Leasing ......................................................................................................................
Securities services .......................................................................................................
Consumer finance ......................................................................................................
Other business ...........................................................................................................
Total ..........................................................................................................................
Year ended March 31, 2012
Ordinary income to external customers
Banking business .......................................................................................................
Leasing ......................................................................................................................
Securities services .......................................................................................................
Consumer finance ......................................................................................................
Other business ...........................................................................................................
Total ..........................................................................................................................
¥2,349,835
506,267
396,531
1,021,137
52,654
¥4,326,424
Millions of yen
¥2,245,549
380,053
285,252
957,514
76,912
¥3,945,282
$24,996
5,385
4,218
10,862
560
$46,021
Notes: 1. Ordinary income is presented as a counterpart of sales of companies in other industries.
2. Ordinary income represents total income excluding gains on disposal of fixed assets, gains on recoveries of written-off claims and other extraordinary gains.
128
SMFGNotes to Consolidated Financial StatementsSMFG 2013
(2) Geographic segment information
(a) Ordinary income
Year ended March 31, 2013
Japan .......................................................................................................................
The Americas ..........................................................................................................
Europe and Middle East ...........................................................................................
Asia and Oceania .....................................................................................................
Total ........................................................................................................................
Year ended March 31, 2012
Japan .......................................................................................................................
The Americas ..........................................................................................................
Europe and Middle East ...........................................................................................
Asia and Oceania .....................................................................................................
Total ........................................................................................................................
Notes: 1. Ordinary income is presented as a counterpart of sales of companies in other industries.
Millions of yen
¥3,555,350
198,817
284,686
287,570
¥4,326,424
Millions of yen
¥3,400,848
169,271
138,987
236,175
¥3,945,282
Millions of U.S. dollars
$37,819
2,115
3,028
3,059
$46,021
2. Ordinary income from transactions by SMFG and its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic consolidated
subsidiaries is categorized as Japan. Ordinary income from transactions by overseas branches of domestic consolidated banking subsidiaries and overseas
consolidated subsidiaries is categorized as The Americas, Europe and Middle East, or Asia and Oceania, based on their locations and in consideration of their
geographic proximity and other factors.
3. The Americas includes the United States, Brazil, Canada and others; Europe and Middle East includes the United Kingdom, Germany, France and others; Asia
and Oceania includes China, Singapore, Australia and others except Japan.
4. Ordinary income represents total income excluding gains on disposal of fixed assets, gains on recoveries of written-off claims and other extraordinary gains.
(b) Tangible fixed assets
Year ended March 31, 2013
Japan .......................................................................................................................
The Americas ..........................................................................................................
Europe and Middle East ...........................................................................................
Asia and Oceania .....................................................................................................
Total ........................................................................................................................
Year ended March 31, 2012
Japan .......................................................................................................................
The Americas ..........................................................................................................
Europe and Middle East ...........................................................................................
Asia and Oceania .....................................................................................................
Total ........................................................................................................................
(3) Information by major customer
There are no major customers individually accounting for 10% or more of ordinary income.
6. Information on losses on impairment of fixed assets by reportable segment
Year ended March 31, 2013
Banking business ..................................................................................................................
Leasing .................................................................................................................................
Securities services .................................................................................................................
Consumer finance .................................................................................................................
Other business ......................................................................................................................
Total .....................................................................................................................................
Year ended March 31, 2012
Banking business ..................................................................................................................
Leasing .................................................................................................................................
Securities services .................................................................................................................
Consumer finance .................................................................................................................
Other business ......................................................................................................................
Total .....................................................................................................................................
Millions of yen
¥1,186,126
17,913
763,870
15,861
¥1,983,772
Millions of yen
¥1,100,866
14,333
57,842
7,479
¥1,180,522
Millions of yen
¥3,591
—
537
107
78
¥4,314
Millions of yen
¥3,264
—
383
202
11
¥3,861
Millions of U.S. dollars
$12,617
191
8,125
169
$21,102
Millions of U.S. dollars
$38
—
6
1
1
$46
129
SMFGNotes to Consolidated Financial StatementsSMFG 2013
7. Information on amortization of goodwill and unamortized balance by reportable segment
Millions of yen
Millions of U.S. dollars
Year ended March 31, 2013
Banking business .............................................................
Leasing ............................................................................
Securities services ............................................................
Consumer finance ............................................................
Other business .................................................................
Total ................................................................................
Year ended March 31, 2012
Banking business .............................................................
Leasing ............................................................................
Securities services ............................................................
Consumer finance ............................................................
Other business .................................................................
Total ................................................................................
Amortization
of goodwill
¥ 554
6,388
14,112
4,274
—
¥25,329
Unamortized
balance
¥ 9,351
86,036
216,238
73,999
—
¥385,625
Millions of yen
Amortization
of goodwill
¥ 545
5,307
14,108
1,718
—
¥21,681
Unamortized
balance
¥ 9,904
83,173
230,347
74,111
—
¥397,537
Amortization
of goodwill
$ 6
68
150
45
—
$269
Unamortized
balance
$ 99
915
2,300
787
—
$4,102
8. Information on gains on negative goodwill by reportable segment
There is no material information to be reported for the fiscal year ended March 31, 2013 and 2012.
9. Information on total credit cost by reportable segment
Year ended March 31, 2013
Banking business ..................................................................................................................
Leasing .................................................................................................................................
Securities services .................................................................................................................
Consumer finance .................................................................................................................
Other business ......................................................................................................................
Total .....................................................................................................................................
Year ended March 31, 2012
Banking business ..................................................................................................................
Leasing .................................................................................................................................
Securities services .................................................................................................................
Consumer finance .................................................................................................................
Other business ......................................................................................................................
Total .....................................................................................................................................
Millions of yen
¥ 63,693
5,289
315
69,342
34,473
¥173,115
Millions of yen
¥ 83,903
(3,977)
1,213
46,199
(6,083)
¥121,255
Millions of U.S. dollars
$ 678
56
3
738
367
$1,841
Notes: 1. Total credit cost = Provision for reserve for possible loan losses + Write-off of loans + Losses on sales of delinquent loans – Recoveries of written-off claims
2. “Other business” includes profit or loss to be offset as internal transactions between segments.
130
SMFGNotes to Consolidated Financial StatementsSMFG 2013
34. Business Combinations
Fiscal year ended March 31, 2013
Joint acquisition of the aircraft leasing business from The Royal Bank
of Scotland Group plc
SMBC and Sumitomo Mitsui Finance and Leasing Company,
Limited (“SMFL”), both are consolidated subsidiaries of SMFG, and
Sumitomo Corporation (“SC”), through the consortium composed
of these three companies, completed the joint acquisition of the
aircraft leasing business under The Royal Bank of Scotland Group plc
(“RBS”), a major financial institution in the UK, on June 1, 2012,
pursuant to the agreement with RBS on January 16, 2012. The
outline of the business combination through acquisition is as follows:
1. Outline of the business combination
(1) Name of the acquired companies and their business
(a) Name of the acquired company: RBS Aerospace Limited
(Renamed as SMBC Aviation Capital Limited in June
2012)
Content of its business: Leasing
(b) Name of the acquired company: RBS Aerospace (UK)
Limited
(Renamed as SMBC Aviation Capital (UK) Limited in June
2012)
Content of its business: Leasing
(c) Name of the acquired company: RBS Australia Leasing Pty
Limited
(Renamed as SMBC Aviation Capital Australia Leasing Pty
Limited in June 2012)
Content of its business: Leasing
(2) Main reasons for the business combination
The aircraft leasing industry expects the demand for commer-
cial aircraft to continue to grow steadily, underpinned by the
increasing number of passengers associated with the growth
of emerging markets, especially in Asia, and the rapid growth
of low cost carriers (LCC). In this perspective, the consortium
jointly acquired RBS’s aircraft leasing business, one of the
market leaders and the fourth largest player in the world in
terms of asset size, aiming to further expand the existing
aircraft leasing business jointly developed by SMFL and SC.
(3) Date of business combination
June 1, 2012
(4) Legal form of the business combination
Acquisition of shares
(5) Name of the controlling entity after the business combination
Sumitomo Mitsui Financial Group, Inc.
(6) Percentage share of voting rights SMFG has acquired
90%
(a) RBS Aerospace Limited ......................................
90%
(b) RBS Aerospace (UK) Limited .............................
(c) RBS Australia Leasing Pty Limited ..................... 100%*
* Acquisition through a consolidated subsidiary (percentage share of voting
rights: 90%) newly established by the consortium composed of the three
companies
(7) Main reason SMFG became the controlling entity
SMFG acquired a majority of voting rights of the companies
above (1) and consolidated it as subsidiaries.
2. Period of the acquired companies’ financial results included in the
consolidated financial statements of SMFG
From June 1, 2012 to March 31, 2013
3. Acquisition cost of the acquired companies
Total acquisition cost of the companies above 1. (1) is as follows:
Millions of
U.S. dollars
$ 993
Millions of yen
¥93,325
Consideration for acquisition .....
Expenses directly required
for acquisition .........................
Acquisition cost of the
acquired companies .................
1,419
15
¥94,745
$1,008
4. Amount of goodwill, reason for recognizing goodwill, amortiza-
tion method and the period
(1) Amount of goodwill
¥7,484 million ($80 million)
(2) Reason for recognizing goodwill
SMFG accounted for the difference between the acquisition
cost and the amount of SMFG’s interests in the company above
1. (1) as goodwill.
(3) Amortization method and the period
Straight-line method over 10 years
5. Amounts of assets and liabilities acquired on the day of the
business combination
(1) Assets
Total assets ................................
Tangible fixed assets ..............
(2) Liabilities
Total liabilities ..........................
Borrowed money ....................
Millions of yen
¥668,091
568,479
Millions of yen
¥571,377
478,581
Millions of
U.S. dollars
$7,107
6,047
Millions of
U.S. dollars
$6,078
5,091
6. Approximate amounts and their calculation method of impact on
the consolidated statements of income for the fiscal year ended
March 31, 2013, assuming that the business combination had been
completed at the beginning of the fiscal year
(1) Estimates of the differences between the ordinary income and
other income data, assuming that the business combination
had been completed at the beginning of the fiscal year and
the actual ordinary income and other income data that are
recorded in the consolidated statements of income are as
follows:
Ordinary income .......................
Ordinary profit ..........................
Net income ...............................
Millions of yen
¥11,365
3,220
1,326
Millions of
U.S. dollars
$121
34
14
Note: Ordinary income is presented as a counterpart of sales of companies in other
industries.
(2) Calculation method of the approximate amounts and material
assumptions
The approximate amounts were calculated retroactively to the
beginning of the fiscal year based on the amounts stated in the
company above 1. (1) and its consolidated subsidiaries’ state-
ments of income for the period from April 1, 2012 to May 31,
2012, including the amount of amortization of goodwill for
the same period, and are different from results of operation if
the business combination had been completed at the begin-
ning of the fiscal year.
131
SMFGNotes to Consolidated Financial StatementsSMFG 2013
The information mentioned in (1) above has not been
audited by KPMG AZSA LLC.
Making SMBC Consumer Finance Co., Ltd. a wholly-owned
subsidiary
SMFG made SMBC Consumer Finance Co., Ltd. (formerly Promise
Co., Ltd. “Promise”) a wholly-owned subsidiary by a share exchange
with an effective date of April 1, 2012 (the “Share Exchange”). The
outline of transactions under common control is as follows:
1. Outline of the transactions
(1) Name and business of combined entities
Acquisition company: Sumitomo Mitsui Financial Group, Inc.
(Bank holding company)
Acquired company: Promise (Consumer finance)
(2) Date of business combination
April 1, 2012
(3) Form of reorganization
Exchange of shares
(4) Name of the entity after the reorganization
Sumitomo Mitsui Financial Group, Inc.
(5) Outline and purpose of the transaction
SMFG has considered it as our basic policy to wholly-own
Promise in order to i) strengthen Promise’s financial base to
effectively achieve expansion of the consumer finance business
with Promise acting at its core in SMFG through further
enforcement of cooperation between Promise and SMFG group
companies and the establishment of a competitive advantage
in the industry of Promise as the initiative, and ii) build up
an infrastructure accommodating more timely and flexible
group-wide decision making. In line with this policy, SMFG
made Promise a wholly-owned subsidiary.
2. Accounting methods
SMFG applies the accounting procedures stipulated by Articles 45
and 46 of the “Accounting Standard for Business Combinations”
(ASBJ Statement No. 21).
3. Acquisition cost of the additionally acquired stocks of subsidiary
Millions of
U.S. dollars
Millions of yen
Fair value of common stock of
Promise additionally acquired ..
Expenses directly required for
acquisition ...............................
Acquisition cost of the
additionally acquired stocks
of subsidiary ............................
¥7,733
60
¥7,794
$82
1
$83
4. Share exchange ratio, its basis for determination, number of shares
delivered
(1) Type of shares and share exchange ratio
Common shares
SMFG 1: Promise 0.36
Note: 0.36 shares of SMFG common stock was allotted and
delivered per share of Promise common stock.
(2) Basis for determination of share exchange ratio
SMFG and Promise separately appointed a financial advisor or
third party valuation institution, both independent of the two
companies, in order to ensure fairness and appropriateness in
determining the share exchange ratio for the Share Exchange.
SMFG appointed Goldman Sachs Japan Co. Ltd. as the
financial advisor while Promise appointed Houlihan Lokey
K.K. as the third party valuation institution. To determine the
share exchange ratio, SMFG and Promise separately considered
it carefully with reference to the share exchange ratio provided
by the above financial advisor and third party valuation
institution, with which they also engaged in discussions and
negotiations. With regard to the valuation of Promise’s share
price, SMFG and Promise took account of the tender offer
price for Promise’s common stock, undertaken by SMBC
prior to the Share Exchange as a benchmark in addition to the
conditions and results of the tender offer, SMFG’s share price
movements and other factors. As a result, SMFG and Promise
concluded that the share exchange ratio set forth in (1) above
was reasonable and beneficial to the shareholders of the two
companies, subsequently agreeing and accepting it for the
transaction.
(3) Number of shares delivered
45,660 thousand shares of common stock of SMFG
5. Amount of goodwill, reason for recognizing goodwill, amortiza-
tion method and the period
(1) Amount of goodwill
¥3,916 million ($42 million)
(2) Reason for recognizing goodwill
SMFG accounted for the difference between the acquisition
cost and the amount of SMFG’s interests in Promise as
goodwill.
(3) Amortization method and the period
Straight-line method over 20 years
132
SMFGNotes to Consolidated Financial StatementsSMFG 2013
35. Per Share Data
March 31
Net assets per share .............................................................................................
2013
¥4,686.69
2012
¥3,856.37
Yen
Yen
Year ended March 31
Net income per share ...........................................................................................
Net income per share (diluted) ............................................................................
Notes: 1. Net income per share and Net income per share (diluted) are calculated based on the following.
2013
¥586.49
585.94
2012
¥374.26
373.99
U.S. dollars
2013
$49.85
U.S. dollars
2013
$6.24
6.23
Year ended March 31
Net income per share:
Millions of yen, except number of shares
2013
2012
Millions of U.S. dollars
2013
Net income ..........................................................................................................................
Amount not attributable to common stockholders ...............................................................
Net income attributable to common stock ...........................................................................
Average number of common stock during the year (in thousands) ........................................
¥794,059
—
¥794,059
1,353,925
Net income per share (diluted):
Adjustment for net income ..................................................................................................
Adjustment for dilutive shares issued by subsidiaries ......................................................
Increase in number of common stock (in thousands) ............................................................
Stock acquisition rights ..................................................................................................
¥ (437)
(437)
519
519
¥518,536
—
¥518,536
1,385,505
¥ (278)
(278)
243
243
$8,447
—
$8,447
/
$ (5)
(5)
/
/
Outline of dilutive shares which were not included in the calculation of “Net income per share (diluted)” for the fiscal years ended March 31, 2013 and 2012 because they do
not have dilutive effect:
Stock acquisition rights: 1 type
(Number of stock acquisition rights issued by resolution at the general shareholders’ meeting on June 27, 2002: 1,081 units)
2. Net assets per share is calculated based on the following:
March 31
Net assets .................................................................................................................................
Amounts excluded from Net assets ...........................................................................................
Stock acquisition rights .......................................................................................................
Minority interests ................................................................................................................
Net assets attributable to common stock at the fiscal year-end ..................................................
Number of common stock at the fiscal year-end used for the calculation of
Net assets per share (in thousands) ..........................................................................................
Millions of yen, except number of shares
2013
¥8,443,218
2,098,020
1,260
2,096,760
¥6,345,197
2012
¥7,254,976
2,044,575
692
2,043,883
¥5,210,400
Millions of U.S. dollars
2013
$89,812
22,317
13
22,304
$67,495
1,353,876
1,351,116
/
36. Subsequent Events
Not applicable.
133
SMFGNotes to Consolidated Financial StatementsSMFG 2013
37. Parent Company
(1) Nonconsolidated Balance Sheets
Sumitomo Mitsui Financial Group, Inc.
March 31
Assets
Current assets ...........................................................................................
Cash and due from banks .....................................................................
Prepaid expenses ..................................................................................
Accrued income ....................................................................................
Accrued income tax refunds .................................................................
Other current assets ..............................................................................
Fixed assets ..............................................................................................
Tangible fixed assets .............................................................................
Buildings ............................................................................................
Equipment..........................................................................................
Intangible fixed assets ...........................................................................
Software .............................................................................................
Investments and other assets ...............................................................
Investments in subsidiaries and affiliates ..........................................
Total assets ...............................................................................................
Liabilities and net assets
Liabilities
Current liabilities ........................................................................................
Short-term borrowings ..........................................................................
Accounts payable ..................................................................................
Accrued expenses .................................................................................
Income taxes payable ...........................................................................
Business office taxes payable ...............................................................
Reserve for employees bonuses ...........................................................
Reserve for executive bonuses .............................................................
Other current liabilities ...........................................................................
Fixed liabilities ...........................................................................................
Bonds ....................................................................................................
Total liabilities ...........................................................................................
¥ 111,290
76,692
29
15
33,100
1,452
6,155,573
2
0
2
83
83
6,155,487
6,155,487
¥6,266,864
¥1,232,959
1,228,030
939
3,102
15
7
133
97
634
392,900
392,900
1,625,859
Net assets
Stockholders’ equity
Capital stock ..........................................................................................
Capital surplus .......................................................................................
Capital reserve ...................................................................................
Other capital surplus..........................................................................
Retained earnings ..................................................................................
Other retained earnings
Voluntary reserve ...........................................................................
Retained earnings brought forward ...............................................
Treasury stock .......................................................................................
Total stockholders’ equity ........................................................................
Stock acquisition rights ...........................................................................
Total net assets .........................................................................................
Total liabilities and net assets ..................................................................
2,337,895
1,583,717
1,559,374
24,343
730,333
30,420
699,913
(12,082)
4,639,865
1,140
4,641,005
¥6,266,864
134
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
¥ 101,852
67,323
29
17
33,266
1,216
6,051,608
0
0
0
16
16
6,051,591
6,051,591
¥6,153,461
¥1,232,931
1,228,030
990
3,082
16
6
127
83
594
392,900
392,900
1,625,831
2,337,895
1,622,966
1,559,374
63,592
721,096
30,420
690,676
(154,926)
4,527,031
598
4,527,629
¥6,153,461
$ 1,184
816
0
0
352
15
65,478
0
0
0
1
1
65,477
65,477
$66,662
$13,115
13,063
10
33
0
0
1
1
7
4,179
4,179
17,295
24,869
16,846
16,587
259
7,769
324
7,445
(129)
49,355
12
49,367
$66,662
SMFGNotes to Consolidated Financial StatementsSMFG 2013 (2) Nonconsolidated Statements of Income
Sumitomo Mitsui Financial Group, Inc.
Millions of yen
Year ended March 31
Operating income .....................................................................................
Dividends on investments in subsidiaries and affiliates ........................
Fees and commissions received from subsidiaries ...............................
Operating expenses .................................................................................
General and administrative expenses ...................................................
Interest on bonds...................................................................................
Operating profit ........................................................................................
Nonoperating income ...............................................................................
Interest income on deposits ..................................................................
Fees and commissions income .............................................................
Other nonoperating income ...................................................................
Nonoperating expenses ...........................................................................
Interest on borrowings ...........................................................................
Fees and commissions payments .........................................................
Other nonoperating expenses ...............................................................
Ordinary profit ...........................................................................................
2013
¥179,560
165,441
14,119
24,341
7,873
16,468
155,219
144
83
3
57
7,378
7,362
15
0
147,985
2012
¥181,372
166,272
15,100
24,902
8,434
16,468
156,470
109
88
0
19
6,657
6,485
163
8
149,922
Income before income taxes ...................................................................
Income taxes:
147,985
149,922
Current ...................................................................................................
Net income ................................................................................................
3
¥147,981
3
¥149,919
Millions of
U.S. dollars (Note 1)
2013
$1,910
1,760
150
259
84
175
1,651
2
1
0
1
78
78
0
0
1,574
1,574
0
$1,574
Per share data:
Net income ............................................................................................
Net income — diluted ...........................................................................
¥104.93
104.89
¥107.06
107.04
$1.12
1.12
Yen
2013
2012
U.S. dollars (Note 1)
2013
135
SMFGNotes to Consolidated Financial StatementsSMFG 2013 (3) Nonconsolidated Statements of Changes in Net Assets
Sumitomo Mitsui Financial Group, Inc.
Year ended March 31
Stockholders’ equity
Capital stock
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
Balance at the beginning of the fiscal year ...........................................
Changes in the fiscal year:
¥2,337,895
¥2,337,895
$24,869
Net changes in the fiscal year............................................................
Balance at the end of the fiscal year .....................................................
—
¥2,337,895
—
¥2,337,895
—
$24,869
Capital surplus
Capital reserve
Balance at the beginning of the fiscal year ........................................
Changes in the fiscal year:
1,559,374
1,559,374
16,587
Net changes in the fiscal year ........................................................
Balance at the end of the fiscal year .................................................
—
¥1,559,374
—
¥1,559,374
—
$16,587
Other capital surplus
Balance at the beginning of the fiscal year ........................................
Changes in the fiscal year:
63,592
273,652
676
Disposal of treasury stock .............................................................
Cancellation of treasury stock .......................................................
Net changes in the fiscal year ........................................................
Balance at the end of the fiscal year .................................................
(39,249)
—
(39,249)
¥ 24,343
(57)
(210,003)
(210,060)
¥ 63,592
(417)
—
(417)
$ 259
Total capital surplus
Balance at the beginning of the fiscal year ........................................
Changes in the fiscal year:
1,622,966
1,833,027
17,264
Disposal of treasury stock .............................................................
Cancellation of treasury stock .......................................................
Net changes in the fiscal year ........................................................
Balance at the end of the fiscal year .................................................
(39,249)
—
(39,249)
¥1,583,717
(57)
(210,003)
(210,060)
¥1,622,966
(417)
—
(417)
$16,846
Retained earnings
Other retained earnings
Voluntary reserve
Balance at the beginning of the fiscal year ....................................
Changes in the fiscal year:
30,420
30,420
324
Net changes in the fiscal year ....................................................
Balance at the end of the fiscal year..............................................
—
¥ 30,420
—
¥ 30,420
—
$ 324
Retained earnings brought forward
Balance at the beginning of the fiscal year ....................................
Changes in the fiscal year:
690,676
684,883
7,347
Cash dividends ..........................................................................
Net income .................................................................................
Net changes in the fiscal year ....................................................
Balance at the end of the fiscal year..............................................
(138,743)
147,981
9,237
¥ 699,913
(144,126)
149,919
5,792
¥ 690,676
(1,476)
1,574
98
$ 7,445
Total retained earnings
Balance at the beginning of the fiscal year ........................................
Changes in the fiscal year:
721,096
715,303
7,670
Cash dividends ..............................................................................
Net income .....................................................................................
Net changes in the fiscal year ........................................................
Balance at the end of the fiscal year .................................................
(138,743)
147,981
9,237
¥ 730,333
(144,126)
149,919
5,792
¥ 721,096
(1,476)
1,574
98
$ 7,769
136
SMFGNotes to Consolidated Financial StatementsSMFG 2013 (Continued)
Year ended March 31
Stockholders’ equity
Treasury stock
Millions of yen
2013
2012
Millions of
U.S. dollars (Note 1)
2013
Balance at the beginning of the fiscal year ...........................................
Changes in the fiscal year:
Purchase of treasury stock ................................................................
Disposal of treasury stock .................................................................
Cancellation of treasury stock ...........................................................
Net changes in the fiscal year............................................................
Balance at the end of the fiscal year .....................................................
Total stockholders’ equity
Balance at the beginning of the fiscal year ...........................................
Changes in the fiscal year:
Cash dividends ..................................................................................
Net income ........................................................................................
Purchase of treasury stock ................................................................
Disposal of treasury stock .................................................................
Cancellation of treasury stock ...........................................................
Net changes in the fiscal year............................................................
Balance at the end of the fiscal year .....................................................
Stock acquisition rights
Balance at the beginning of the fiscal year ...........................................
Changes in the fiscal year:
Net changes in items other than stockholders’
equity in the fiscal year ....................................................................
Net changes in the fiscal year............................................................
Balance at the end of the fiscal year .....................................................
Total net assets
Balance at the beginning of the fiscal year ...........................................
Changes in the fiscal year:
Cash dividends ..................................................................................
Net income ........................................................................................
Purchase of treasury stock ................................................................
Disposal of treasury stock .................................................................
Cancellation of treasury stock ...........................................................
Net changes in items other than stockholders’
equity in the fiscal year ....................................................................
Net changes in the fiscal year............................................................
Balance at the end of the fiscal year .....................................................
¥ (154,926)
¥ (43,482)
$ (1,648)
(263)
143,107
—
142,844
¥ (12,082)
(321,521)
74
210,003
(111,444)
¥ (154,926)
(3)
1,522
—
1,519
$ (129)
4,527,031
4,842,743
48,155
(138,743)
147,981
(263)
103,858
—
112,833
¥4,639,865
(144,126)
149,919
(321,521)
17
—
(315,711)
¥4,527,031
(1,476)
1,574
(3)
1,105
—
1,200
$49,355
598
170
6
542
542
¥ 1,140
427
427
¥ 598
6
6
$ 12
4,527,629
4,842,914
48,161
(138,743)
147,981
(263)
103,858
—
(144,126)
149,919
(321,521)
17
—
542
113,375
¥4,641,005
427
(315,284)
¥4,527,629
(1,476)
1,574
(3)
1,105
—
6
1,206
$49,367
137
SMFGNotes to Consolidated Financial StatementsSMFG 2013 Independent Auditor’s Report
To the Board of Directors of
Sumitomo Mitsui Financial Group, Inc.:
We have audited the accompanying consolidated financial statements of Sumitomo Mitsui Financial Group, Inc.
(“SMFG”) and subsidiaries, which comprise the consolidated balance sheets as at March 31, 2013 and 2012, and the
consolidated statements of income, comprehensive income, changes in net assets and cash flows for the years then
ended, and basis of presentation, significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accor-
dance with accounting principles generally accepted in Japan, and for such internal control as management determines
is necessary to enable the preparation of consolidated financial statements that are free from material misstatements,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We con-
ducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on our judgement, including the assessment of
the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making
those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, while
the objective of the financial statement audit is not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of
SMFG and subsidiaries as at March 31, 2013 and 2012, and their financial performance and cash flows for the years
then ended in accordance with accounting principles generally accepted in Japan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March
31, 2013 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dol-
lar amounts and, in our opinion, such translation has been made on the basis described in Note 1 to the consolidated
financial statements.
June 27, 2013
Tokyo, Japan
138
SMFGSMFG 2013 Supplemental Information
Consolidated Balance Sheets (Unaudited)
Sumitomo Mitsui Banking Corporation and Subsidiaries
March 31
Assets
Cash and due from banks ...................................................................................
Deposits with banks .............................................................................................
Call loans and bills bought ...................................................................................
Receivables under resale agreements .................................................................
Receivables under securities borrowing transactions ..........................................
Monetary claims bought .......................................................................................
Trading assets ......................................................................................................
Money held in trust ...............................................................................................
Securities ..............................................................................................................
Loans and bills discounted ..................................................................................
Foreign exchanges ...............................................................................................
Lease receivables and investment assets ............................................................
Other assets .........................................................................................................
Tangible fixed assets ............................................................................................
Intangible fixed assets ..........................................................................................
Deferred tax assets ..............................................................................................
Customers’ liabilities for acceptances and guarantees .......................................
Reserve for possible loan losses ..........................................................................
Total assets ..........................................................................................................
Millions of yen
2013
2012
¥ 5,133,711
5,522,090
1,353,746
273,217
3,454,499
1,426,281
7,619,413
14,883
41,294,005
66,665,737
2,226,427
164,189
2,195,969
843,653
409,001
295,860
5,117,140
(806,702)
¥143,203,127
¥ 4,526,372
3,073,702
1,291,818
227,749
4,493,570
1,271,745
8,101,100
17,763
42,379,194
63,584,767
1,280,636
143,978
2,609,882
849,074
514,332
340,592
4,412,973
(867,653)
¥138,251,602
Millions of
U.S. dollars
2013
$ 54,608
58,739
14,400
2,906
36,746
15,172
81,049
158
439,251
709,135
23,683
1,747
23,359
8,974
4,351
3,147
54,432
(8,581)
$1,523,275
139
SMBCSMFG 2013 (Continued)
March 31
Liabilities and net assets
Liabilities
Deposits ...............................................................................................................
Call money and bills sold .....................................................................................
Payables under repurchase agreements ..............................................................
Payables under securities lending transactions ...................................................
Commercial paper ................................................................................................
Trading liabilities ...................................................................................................
Borrowed money ..................................................................................................
Foreign exchanges ...............................................................................................
Short-term bonds .................................................................................................
Bonds ...................................................................................................................
Due to trust account ............................................................................................
Other liabilities ......................................................................................................
Reserve for employee bonuses ............................................................................
Reserve for executive bonuses ............................................................................
Reserve for employee retirement benefits............................................................
Reserve for executive retirement benefits ............................................................
Reserve for point service program .......................................................................
Reserve for reimbursement of deposits ...............................................................
Reserve for losses on interest repayment ............................................................
Reserve under the special laws ............................................................................
Deferred tax liabilities ...........................................................................................
Deferred tax liabilities for land revaluation ...........................................................
Acceptances and guarantees ...............................................................................
Total liabilities ......................................................................................................
Net assets
Capital stock ........................................................................................................
Capital surplus .....................................................................................................
Retained earnings ................................................................................................
Treasury stock ......................................................................................................
Total stockholders’ equity ...................................................................................
Net unrealized gains on other securities ..............................................................
Net deferred losses on hedges ............................................................................
Land revaluation excess .......................................................................................
Foreign currency translation adjustments ............................................................
Total accumulated other comprehensive income ..............................................
Stock acquisition rights ........................................................................................
Minority interests ..................................................................................................
Total net assets ....................................................................................................
Total liabilities and net assets .............................................................................
Notes: 1. Amounts less than 1 million yen have been omitted.
Millions of yen
2013
2012
Millions of
U.S. dollars
2013
¥101,315,909
2,956,172
2,076,791
4,399,084
1,499,499
6,084,053
2,910,334
337,901
277,500
4,585,859
643,350
2,604,970
45,241
3,378
15,776
1,267
2,632
11,195
1,017
159
17,116
39,683
5,117,140
134,946,036
1,770,996
2,717,397
1,869,906
(210,003)
6,148,297
754,804
(30,781)
39,055
(108,123)
654,954
120
1,453,718
8,257,091
¥143,203,127
¥ 93,113,430
2,144,599
1,676,902
5,809,603
1,193,249
6,208,087
6,835,091
302,580
244,988
4,540,708
443,723
3,539,191
38,118
2,419
23,766
1,465
3,230
10,980
336,956
98
52,811
39,915
4,412,973
130,974,895
1,770,996
2,717,397
1,299,484
(210,003)
5,577,875
286,413
(30,674)
39,078
(139,425)
155,391
94
1,543,345
7,276,706
¥138,251,602
$1,077,714
31,445
22,091
46,794
15,950
64,717
30,958
3,594
2,952
48,781
6,843
27,709
481
36
168
13
28
119
11
2
182
422
54,432
1,435,443
18,838
28,905
19,891
(2,234)
65,400
8,029
(327)
415
(1,150)
6,967
1
15,463
87,832
$1,523,275
2. For the convenience of readers, the accompanying U.S. dollar financial statements have been translated from Japanese yen, as a matter of arithmetical
computation only, at the rate of ¥94.01 to US$1, the exchange rate prevailing at March 31, 2013.
140
SMBCSupplemental InformationSMFG 2013
Consolidated Statements of Income and
Consolidated Statements of Comprehensive Income (Unaudited)
Sumitomo Mitsui Banking Corporation and Subsidiaries
(Consolidated Statements of Income)
Year ended March 31
Income
Interest income .....................................................................................................
Interest on loans and discounts .......................................................................
Interest and dividends on securities .................................................................
Interest on receivables under resale agreements .............................................
Interest on receivables under securities borrowing transactions .....................
Interest on deposits with banks .......................................................................
Interest on lease transactions ...........................................................................
Other interest income .......................................................................................
Trust fees ..............................................................................................................
Fees and commissions .........................................................................................
Trading income .....................................................................................................
Other operating income .......................................................................................
Other income .......................................................................................................
Total income ........................................................................................................
Expenses
Interest expenses .................................................................................................
Interest on deposits ..........................................................................................
Interest on borrowings and rediscounts ...........................................................
Interest on payables under repurchase agreements ........................................
Interest on payables under securities lending transactions .............................
Interest on bonds and short-term bonds .........................................................
Other interest expenses ...................................................................................
Fees and commissions payments ........................................................................
Trading losses ......................................................................................................
Other operating expenses ....................................................................................
General and administrative expenses ..................................................................
Provision for reserve for possible loan losses ......................................................
Other expenses ....................................................................................................
Total expenses .....................................................................................................
Income before income taxes and minority interests .........................................
Income taxes:
¥1,487,807
1,134,497
252,439
6,240
6,527
32,978
5,429
49,694
1,823
719,640
175,868
362,186
63,575
2,810,902
281,199
138,158
29,665
6,300
6,252
83,778
17,043
145,763
40,124
94,549
1,133,426
9,234
184,772
1,889,068
921,833
Current ..............................................................................................................
Deferred ............................................................................................................
Income before minority interests ........................................................................
Minority interests in net income ...........................................................................
Net income ..........................................................................................................
228,602
(122,120)
815,351
80,836
¥ 734,514
Millions of yen
2013
2012
Millions of
U.S. dollars
2013
¥1,503,442
1,168,180
238,443
5,890
6,788
29,512
4,905
49,720
1,736
689,790
178,791
274,440
67,498
2,715,700
264,340
134,661
30,356
3,694
6,828
75,962
12,837
138,337
—
64,269
1,142,170
13,411
215,861
1,838,390
877,310
63,156
190,576
623,577
89,760
¥ 533,816
$15,826
12,068
2,685
66
69
351
58
529
19
7,655
1,871
3,853
676
29,900
2,991
1,470
316
67
67
891
181
1,551
427
1,006
12,056
98
1,965
20,094
9,806
2,432
(1,299)
8,673
860
$ 7,813
141
SMBCSupplemental InformationSMFG 2013 (Continued)
(Consolidated Statements of Comprehensive Income)
Millions of yen
Year ended March 31
Income before minority interests ........................................................................
Other comprehensive income .............................................................................
Net unrealized gains on other securities ..........................................................
Net deferred gains (losses) on hedges .............................................................
Land revaluation excess ...................................................................................
Foreign currency translation adjustments ........................................................
Share of other comprehensive income of affiliates ..........................................
Total comprehensive income ..............................................................................
Comprehensive income attributable to shareholders of the parent ...................
Comprehensive income attributable to minority interests ...............................
2013
¥ 815,351
558,271
482,569
43
—
80,281
(4,622)
1,373,623
1,234,101
139,522
2012
¥623,577
9,312
53,988
(21,897)
5,613
(23,912)
(4,479)
632,889
544,544
88,345
Millions of
U.S. dollars
2013
$ 8,673
5,938
5,133
0
—
854
(49)
14,611
13,127
1,484
Per share data:
Net income .......................................................................................................
Net income — diluted ......................................................................................
¥6,913.18
6,908.19
¥5,024.23
5,023.33
$73.54
73.48
Notes: 1. Amounts less than 1 million yen have been omitted.
2. For the convenience of readers, the accompanying U.S. dollar financial statements have been translated from Japanese yen, as a matter of arithmetical
computation only, at the rate of ¥94.01 to US$1, the exchange rate prevailing at March 31, 2013.
Yen
U.S. dollars
142
SMBCSupplemental InformationSMFG 2013
Nonconsolidated Balance Sheets (Unaudited)
Sumitomo Mitsui Banking Corporation
March 31
Assets
Cash and due from banks ....................................................................................
Deposits with banks .............................................................................................
Call loans and bills bought ...................................................................................
Receivables under resale agreements .................................................................
Receivables under securities borrowing transactions ..........................................
Monetary claims bought .......................................................................................
Trading assets ......................................................................................................
Money held in trust ...............................................................................................
Securities ..............................................................................................................
Loans and bills discounted ..................................................................................
Foreign exchanges ...............................................................................................
Other assets .........................................................................................................
Tangible fixed assets ............................................................................................
Intangible fixed assets ..........................................................................................
Deferred tax assets ..............................................................................................
Customers’ liabilities for acceptances and guarantees .......................................
Reserve for possible loan losses ..........................................................................
Reserve for possible losses on investments ........................................................
Total assets ..........................................................................................................
Liabilities and net assets
Liabilities
Deposits ...............................................................................................................
Call money and bills sold .....................................................................................
Payables under repurchase agreements ..............................................................
Payables under securities lending transactions ...................................................
Commercial paper ................................................................................................
Trading liabilities ...................................................................................................
Borrowed money ..................................................................................................
Foreign exchanges ...............................................................................................
Short-term bonds .................................................................................................
Bonds ...................................................................................................................
Due to trust account .............................................................................................
Other liabilities ......................................................................................................
Reserve for employee bonuses ............................................................................
Reserve for executive bonuses ............................................................................
Reserve for point service program .......................................................................
Reserve for reimbursement of deposits ...............................................................
Deferred tax liabilities for land revaluation ...........................................................
Acceptances and guarantees ...............................................................................
Total liabilities ......................................................................................................
Net assets
Capital stock ........................................................................................................
Capital surplus .....................................................................................................
Retained earnings ................................................................................................
Treasury stock ......................................................................................................
Total stockholders’ equity ...................................................................................
Net unrealized gains on other securities ..............................................................
Net deferred gains on hedges ..............................................................................
Land revaluation excess .......................................................................................
Total valuation and translation adjustments ......................................................
Total net assets ....................................................................................................
Total liabilities and net assets .............................................................................
Notes: 1. Amounts less than 1 million yen have been omitted.
Millions of yen
2013
2012
¥ 3,378,033
6,038,323
514,967
229,826
701,890
795,514
4,085,739
2,372
41,347,000
59,770,763
1,319,175
1,894,382
733,157
167,159
185,941
5,391,645
(616,593)
(29,280)
¥125,910,020
¥ 91,928,337
2,450,065
1,704,650
2,654,478
1,499,499
3,590,373
2,963,075
351,885
20,000
4,277,003
643,350
1,817,920
11,436
665
1,945
10,050
39,190
5,391,645
119,355,573
1,770,996
2,481,273
1,720,728
(210,003)
5,762,995
742,338
23,301
25,810
791,451
6,554,446
¥125,910,020
¥ 4,192,690
2,426,035
547,240
203,768
726,677
626,146
3,777,835
7,253
42,441,134
56,411,492
1,024,074
1,981,695
730,939
154,892
185,428
4,299,577
(689,215)
(10,195)
¥119,037,469
¥ 84,392,835
1,877,900
562,867
4,539,644
1,193,249
3,503,085
5,181,294
341,400
19,999
4,215,610
443,723
2,693,465
10,798
609
2,503
9,854
39,385
4,299,577
113,327,806
1,770,996
2,481,273
1,255,108
(210,003)
5,297,375
281,109
105,391
25,786
412,288
5,709,663
¥119,037,469
Millions of
U.S. dollars
2013
$ 35,933
64,231
5,478
2,445
7,466
8,462
43,461
25
439,815
635,792
14,032
20,151
7,799
1,778
1,978
57,352
(6,559)
(311)
$1,339,326
$ 977,857
26,062
18,133
28,236
15,950
38,191
31,519
3,743
213
45,495
6,843
19,338
122
7
21
107
417
57,352
1,269,605
18,838
26,394
18,304
(2,234)
61,302
7,896
248
275
8,419
69,721
$1,339,326
2. For the convenience of readers, the accompanying U.S. dollar financial statements have been translated from Japanese yen, as a matter of arithmetical
computation only, at the rate of ¥94.01 to US$1, the exchange rate prevailing at March 31, 2013.
143
SMBCSupplemental InformationSMFG 2013
Millions of yen
2013
2012
Millions of
U.S. dollars
2013
Nonconsolidated Statements of Income (Unaudited)
Sumitomo Mitsui Banking Corporation
Year ended March 31
Income
Interest income .....................................................................................................
Interest on loans and discounts .......................................................................
Interest and dividends on securities .................................................................
Interest on receivables under resale agreements .............................................
Interest on receivables under securities borrowing transactions .....................
Interest on deposits with banks .......................................................................
Other interest income .......................................................................................
Trust fees ..............................................................................................................
Fees and commissions .........................................................................................
Trading income .....................................................................................................
Other operating income .......................................................................................
Other income ........................................................................................................
Total income ........................................................................................................
Expenses
Interest expenses .................................................................................................
Interest on deposits ..........................................................................................
Interest on borrowings and rediscounts ...........................................................
Interest on payables under repurchase agreements ........................................
Interest on payables under securities lending transactions .............................
Interest on bonds and short-term bonds .........................................................
Other interest expenses ...................................................................................
Fees and commissions payments ........................................................................
Trading losses ......................................................................................................
Other operating expenses ....................................................................................
General and administrative expenses ..................................................................
Provision for reserve for possible loan losses ......................................................
Other expenses ....................................................................................................
Total expenses .....................................................................................................
Income before income taxes ..............................................................................
Income taxes:
¥1,270,673
958,912
245,917
5,009
1,601
19,440
39,792
1,823
489,310
5,780
278,366
75,457
2,121,412
299,478
101,522
97,695
5,311
4,688
78,900
11,360
145,572
9,562
51,254
759,295
—
190,849
1,456,011
665,400
¥1,239,535
943,216
226,631
3,726
1,330
18,625
46,006
1,736
453,877
84,051
193,341
48,500
2,021,042
282,668
99,235
93,389
2,050
5,318
70,530
12,144
134,989
—
22,384
752,436
16,175
120,394
1,329,050
691,992
Current ..............................................................................................................
Deferred ............................................................................................................
Net income ..........................................................................................................
209,704
(162,095)
¥ 617,791
44,703
169,315
¥ 477,973
$13,516
10,200
2,616
53
17
207
423
19
5,205
61
2,961
803
22,566
3,186
1,080
1,039
56
50
839
121
1,548
102
545
8,077
—
2,030
15,488
7,078
2,231
(1,724)
$ 6,572
Per share data:
Net income .......................................................................................................
Net income — diluted ......................................................................................
¥5,814.59
—
¥4,498.64
—
$61.85
—
Notes: 1. Amounts less than 1 million yen have been omitted.
2. For the convenience of readers, the accompanying U.S. dollar financial statements have been translated from Japanese yen, as a matter of arithmetical
computation only, at the rate of ¥94.01 to US$1, the exchange rate prevailing at March 31, 2013.
Yen
U.S. dollars
144
SMBCSupplemental InformationSMFG 2013
Income Analysis (Consolidated)
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Operating Income, Classified by Domestic and Overseas Operations
Millions of yen
Year ended March 31
Domestic
operations
Interest income ..................................................... ¥1,297,908
Interest expenses ..................................................
274,444
Net interest income ................................................... 1,023,463
Trust fees ...................................................................
1,871
Fees and commissions .........................................
896,691
Fees and commissions payments ........................
108,673
Net fees and commissions ........................................
788,018
Trading income......................................................
229,721
Trading losses .......................................................
69,493
Net trading income ....................................................
160,228
Other operating income ........................................ 1,084,654
Other operating expenses.....................................
837,374
Net other operating income.......................................
247,280
2013
Overseas
operations Elimination
Total
¥527,972
158,458
369,513
—
146,465
23,558
122,906
34,767
28,378
6,389
199,825
123,000
76,824
(118,034)
(333)
—
(3,030)
(274)
(2,755)
(57,747)
(57,747)
¥(118,367) ¥1,707,513
314,868
1,392,644
1,871
1,040,126
131,957
908,168
206,741
40,124
— 166,617
1,283,776
960,179
323,597
(703)
(195)
(508)
Domestic
operations
¥1,314,718
268,775
1,045,943
1,770
827,374
119,947
707,426
223,100
9,273
213,827
1,029,399
836,155
193,243
2012
Overseas
operations Elimination
Total
¥432,440
135,995
296,444
—
130,911
12,943
117,968
19,768
35,403
(15,634)
81,633
45,118
36,515
(114,559)
(1,006)
—
(2,606)
(791)
(1,814)
(44,676)
(44,676)
¥(115,566) ¥1,631,592
290,211
1,341,380
1,770
955,680
132,099
823,580
198,192
—
— 198,192
1,110,566
880,998
229,568
(466)
(275)
(190)
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and
overseas consolidated subsidiaries.
2. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest expenses” are shown
after deduction of expenses (2013, ¥7 million; 2012, ¥11 million) related to the management of money held in trust.
3. Intersegment transactions are reported in the “Elimination” column.
Average Balance, Interest and Earnings Yield of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Millions of yen
Year ended March 31
Interest-earning assets .............................................. ¥ 95,457,643
51,071,487
36,951,823
303,572
30,138
Loans and bills discounted ...................................
Securities ..............................................................
Call loans and bills bought ....................................
Receivables under resale agreements ..................
Average balance
Receivables under securities
borrowing transactions .......................................
Deposits with banks ..............................................
Lease receivables and investment assets ............
3,731,493
389,585
1,434,859
Interest-bearing liabilities .......................................... ¥101,571,811
76,014,488
6,279,011
1,233,732
1,069,954
3,900,722
—
6,934,146
964,542
4,943,650
Deposits ...............................................................
Negotiable certificates of deposit .........................
Call money and bills sold ......................................
Payables under repurchase agreements ..............
Payables under securities lending transactions ...
Commercial paper.................................................
Borrowed money ...................................................
Short-term bonds ..................................................
Bonds ....................................................................
2013
Interest
¥1,297,908
970,431
217,956
1,519
46
6,565
1,505
48,427
¥ 274,444
47,239
8,989
1,039
1,497
6,284
—
104,684
1,356
100,042
Earnings yield
1.36%
1.90
0.59
0.50
0.16
0.18
0.39
3.38
0.27%
0.06
0.14
0.08
0.14
0.16
—
1.51
0.14
2.02
Average balance
¥ 96,305,891
52,955,134
35,985,772
340,099
33,409
3,916,819
320,621
1,502,065
¥103,590,027
74,462,781
6,553,470
1,434,362
1,034,848
3,873,427
—
10,594,792
1,016,300
4,403,844
2012
Interest
¥1,314,718
971,576
218,377
2,080
38
6,823
2,853
56,844
¥ 268,775
54,738
10,059
1,564
1,048
6,852
—
104,790
1,540
86,133
Earnings yield
1.37%
1.83
0.61
0.61
0.11
0.17
0.89
3.78
0.26%
0.07
0.15
0.11
0.10
0.18
—
0.99
0.15
1.96
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries.
2. In principle, average balances are calculated by using daily balances. However, some consolidated subsidiaries use weekly, monthly or quarterly balances
instead.
3. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥1,648,570 million; 2012, ¥1,950,185
million).
4. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest-earning assets” are
shown after deduction of the average balance of money held in trust (2013, ¥24,916 million; 2012, ¥24,556 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2013, ¥24,916 million; 2012, ¥24,556 million) and corresponding
interest (2013, ¥7 million; 2012, ¥11 million).
145
SMFGSMFG 2013
Overseas Operations
Year ended March 31
Interest-earning assets ..............................................
Loans and bills discounted ...................................
Securities ..............................................................
Call loans and bills bought ....................................
Receivables under resale agreements ..................
Average balance
¥25,635,638
14,830,669
2,569,373
1,141,432
285,240
Receivables under securities
borrowing transactions .......................................
Deposits with banks ..............................................
Lease receivables and investment assets ............
Interest-bearing liabilities ..........................................
Deposits ................................................................
Negotiable certificates of deposit .........................
Call money and bills sold ......................................
Payables under repurchase agreements ..............
Payables under securities lending transactions ...
Commercial paper.................................................
Borrowed money ...................................................
Short-term bonds ..................................................
Bonds ....................................................................
—
4,689,360
295,034
¥17,830,372
8,410,005
5,264,852
659,919
1,081,172
—
1,580,650
737,037
—
54,832
2013
Interest
¥527,972
383,510
50,542
13,038
6,193
—
32,199
16,000
¥158,458
49,448
32,638
3,508
4,805
—
5,703
17,172
—
2,825
Millions of yen
Earnings yield
2.06%
2.59
1.97
1.14
2.17
Average balance
¥19,015,055
11,282,653
1,794,991
830,607
193,189
—
0.69
5.42
0.89%
0.59
0.62
0.53
0.44
—
0.36
2.33
—
5.15
—
3,739,091
230,789
¥12,388,251
7,419,147
2,981,411
376,447
647,974
—
511,690
325,402
—
102,081
2012
Interest
¥432,440
312,938
40,659
12,671
5,852
—
27,497
12,099
¥135,995
48,104
22,399
2,032
2,646
—
1,986
13,098
—
6,610
Earnings yield
2.27%
2.77
2.27
1.53
3.03
—
0.74
5.24
1.10%
0.65
0.75
0.54
0.41
—
0.39
4.03
—
6.48
Notes: 1. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas consolidated
subsidiaries.
2. In principle, average balances are calculated by using daily balances. However, some consolidated subsidiaries use weekly, monthly or quarterly balances
instead.
3. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥85,807 million; 2012, ¥71,630 million).
Total of Domestic and Overseas Operations
Millions of yen
Year ended March 31
Interest-earning assets .............................................. ¥119,009,060
64,313,060
39,175,534
1,445,004
315,280
Loans and bills discounted ...................................
Securities ..............................................................
Call loans and bills bought ....................................
Receivables under resale agreements ..................
Average balance
Receivables under securities
borrowing transactions .......................................
Deposits with banks ..............................................
Lease receivables and investment assets ............
3,731,493
4,945,879
1,729,893
Interest-bearing liabilities .......................................... ¥117,416,948
84,218,862
11,543,863
1,893,652
2,151,027
3,900,722
1,580,650
6,298,037
964,542
4,605,583
Deposits ................................................................
Negotiable certificates of deposit .........................
Call money and bills sold ......................................
Payables under repurchase agreements ..............
Payables under securities lending transactions ...
Commercial paper.................................................
Borrowed money ...................................................
Short-term bonds ..................................................
Bonds ....................................................................
2013
Interest
¥1,707,513
1,278,372
251,675
14,557
6,240
6,565
33,191
64,425
¥314,868
96,175
41,627
4,547
6,301
6,284
5,703
46,280
1,356
86,399
Earnings yield
1.43%
1.99
0.64
1.01
1.98
0.18
0.67
3.72
0.27%
0.11
0.36
0.24
0.29
0.16
0.36
0.73
0.14
1.88
Average balance
¥113,479,948
62,913,741
37,433,545
1,170,707
226,579
3,916,819
3,904,411
1,732,854
¥114,072,487
81,683,045
9,534,881
1,810,794
1,682,804
3,873,427
511,690
9,616,933
1,016,300
4,113,026
2012
Interest
¥1,631,592
1,211,794
242,086
14,752
5,890
6,823
29,742
68,943
¥290,211
102,018
32,458
3,596
3,694
6,852
1,986
45,939
1,540
76,276
Earnings yield
1.44%
1.93
0.65
1.26
2.60
0.17
0.76
3.98
0.25%
0.12
0.34
0.20
0.22
0.18
0.39
0.48
0.15
1.85
Notes: 1. The figures above comprise totals for domestic and overseas operations after intersegment eliminations.
2. In principle, average balances are calculated by using daily balances. However, some consolidated subsidiaries use weekly, monthly or quarterly balances
instead.
3. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥1,735,120 million; 2012, ¥2,024,133
million).
4. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest-earning assets” are
shown after deduction of the average balance of money held in trust (2013, ¥24,916 million; 2012, ¥24,556 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2013, ¥24,916 million; 2012, ¥24,556 million) and corresponding
interest (2013, ¥7 million; 2012, ¥11 million).
146
SMFGIncome Analysis (Consolidated)SMFG 2013
Fees and Commissions
Millions of yen
2013
Domestic
Year ended March 31
operations
Fees and commissions .............................................. ¥896,691
23,348
118,486
75,331
18,172
5,989
67,379
225,444
161,394
Deposits and loans ...............................................
Remittances and transfers ....................................
Securities-related business ...................................
Agency ..................................................................
Safe deposits ........................................................
Guarantees ............................................................
Credit card business .............................................
Investment trusts ..................................................
Overseas
operations Elimination
¥146,465
89,445
12,260
18,206
—
2
12,142
—
1,556
¥(3,030)
(69)
(5)
(1,538)
—
—
(145)
—
—
Total
¥1,040,126
112,723
130,742
91,999
18,172
5,991
79,376
225,444
162,951
Domestic
operations
¥827,374
21,619
117,283
65,090
18,896
6,322
59,283
208,853
141,372
2012
Overseas
operations Elimination
¥130,911
70,789
9,704
25,625
—
2
11,892
—
1,567
¥(2,606)
(11)
(3)
(366)
—
—
(109)
—
—
Total
¥955,680
92,397
126,984
90,350
18,896
6,325
71,066
208,853
142,940
Fees and commissions payments ............................. ¥108,673
27,923
Remittances and transfers ....................................
¥ 23,558
16,381
¥ (274)
(59)
¥ 131,957
44,244
¥119,947
27,256
¥ 12,943
6,156
¥ (791)
(111)
¥132,099
33,301
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and
overseas consolidated subsidiaries.
2. Intersegment transactions are reported in the “Elimination” column.
Trading Income
2013
2012
Millions of yen
Domestic
Year ended March 31
operations
Trading income .......................................................... ¥229,721
210,551
Gains on trading securities ...................................
Overseas
operations Elimination
¥34,767
—
¥(57,747)
(8,463)
Total
¥206,741
202,087
Domestic
operations
¥223,100
132,055
Overseas
operations Elimination
¥19,768
—
¥(44,676)
(17,077)
Total
¥198,192
114,978
Gains on securities related to
trading transactions ............................................
Gains on trading-related financial derivatives .......
Others ...................................................................
4,225
14,577
367
Trading losses............................................................
Losses on trading securities .................................
69,493
—
Losses on securities related to
trading transactions ............................................
Losses on trading-related financial derivatives .....
Others ...................................................................
—
69,493
—
60
34,707
—
28,378
8,463
—
19,914
—
—
(49,284)
—
(57,747)
(8,463)
—
(49,284)
—
4,286
—
367
40,124
—
—
40,124
—
7,313
83,188
542
320
18,739
708
—
(27,599)
—
7,634
74,328
1,251
¥ 9,273
¥35,403
— 17,077
¥(44,676)
(17,077)
¥ —
—
—
9,273
—
—
18,326
—
—
(27,599)
—
—
—
—
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and
overseas consolidated subsidiaries.
2. Intersegment transactions are reported in the “Elimination” column.
147
SMFGIncome Analysis (Consolidated)SMFG 2013
Assets and Liabilities (Consolidated)
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
Overseas operations:
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
Grand total ......................................................................................................
¥ 51,018,457
25,178,398
3,834,791
80,031,646
5,553,909
¥ 85,585,556
¥ 6,448,821
2,509,550
91,792
9,050,165
6,201,744
¥ 15,251,909
¥100,837,465
¥48,497,851
25,121,271
3,792,990
77,412,113
5,327,489
¥82,739,603
¥ 4,849,970
1,745,146
121,331
6,716,447
3,266,149
¥ 9,982,596
¥92,722,199
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and
overseas consolidated subsidiaries.
2. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
3. Fixed-term deposits = Time deposits + Installment savings
Balance of Loan Portfolio, Classified by Industry
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Manufacturing..............................................................................................
Agriculture, forestry, fisheries and mining ...................................................
Construction ................................................................................................
Transportation, communications and public enterprises ............................
Wholesale and retail ....................................................................................
Finance and insurance ................................................................................
Real estate, goods rental and leasing .........................................................
Services .......................................................................................................
Municipalities ...............................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Overseas operations:
Public sector ................................................................................................
Financial institutions ....................................................................................
Commerce and industry ..............................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
¥ 6,003,907
152,463
887,269
4,281,888
4,159,359
3,706,937
7,584,206
3,915,730
1,115,839
20,072,016
¥51,879,618
¥ 62,765
579,557
11,634,862
1,475,287
¥13,752,473
¥65,632,091
11.57%
0.29
1.71
8.25
8.02
7.15
14.62
7.55
2.15
38.69
100.00%
0.46%
4.21
84.60
10.73
100.00%
—
¥ 6,076,691
137,269
897,228
4,237,675
4,117,071
3,448,010
7,443,777
3,612,303
1,054,492
20,907,113
¥51,931,633
¥ 73,593
510,896
9,165,963
1,038,512
¥10,788,965
¥62,720,599
11.70%
0.26
1.73
8.16
7.93
6.64
14.33
6.96
2.03
40.26
100.00%
0.68%
4.73
84.96
9.63
100.00%
—
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and
overseas consolidated subsidiaries.
2. Japan offshore banking accounts are included in overseas operations’ accounts.
148
SMFGSMFG 2013
Reserve for Possible Loan Losses
March 31
General reserve ...............................................................................................
Specific reserve ...............................................................................................
Loan loss reserve for specific overseas countries ..........................................
Reserve for possible loan losses .....................................................................
Amount of direct reduction ..............................................................................
2013
¥539,305
389,555
5
¥928,866
¥653,146
Risk-Monitored Loans
March 31
Bankrupt loans ................................................................................................
Non-accrual loans ...........................................................................................
Past due loans (3 months or more) .................................................................
Restructured loans ..........................................................................................
Total .................................................................................................................
Amount of direct reduction ..............................................................................
Notes: Definition of risk-monitored loan categories
2013
¥ 55,479
1,130,562
16,044
484,963
¥1,687,049
¥ 585,789
Millions of yen
Millions of yen
2012
¥593,338
385,416
178
¥978,933
¥685,871
2012
¥ 74,218
1,145,347
22,502
562,882
¥1,804,951
¥ 596,075
1. Bankrupt loans: Credits for which accrued interest is not accounted in revenue; credits extended to borrowers that are undergoing bankruptcy,
corporate reorganization and rehabilitation proceedings or debtors receiving orders of disposition by suspension of business at bill clearinghouses
2. Non-accrual loans: Credits for which accrued interest is not accounted in revenue; credits, excluding loans to bankrupt borrowers and loans with grace for
interest payment to assist in corporate reorganization or to support business
3. Past due loans (3 months or more): Loans with payment of principal or interest in arrears for more than 3 months, calculated from the day following the
contractual due date, excluding borrowers in categories 1. and 2.
4. Restructured loans: Loans to borrowers in severe financial condition given certain favorable terms and conditions to assist in corporate rehabilitation or to
support business, excluding borrowers in categories 1. through 3.
Problem Assets Based on the Financial Reconstruction Act
March 31
Bankrupt and quasi-bankrupt assets ..............................................................
Doubtful assets ...............................................................................................
Substandard loans ..........................................................................................
Total of problem assets ...................................................................................
Normal assets .................................................................................................
Total .................................................................................................................
Amount of direct reduction ..............................................................................
Notes: Definition of problem asset categories
2013
¥ 248,161
973,057
505,130
1,726,349
74,273,608
¥75,999,958
¥ 653,146
Millions of yen
2012
¥ 259,670
1,017,631
580,351
1,857,653
69,826,134
¥71,683,787
¥ 685,871
1. Bankrupt and quasi-bankrupt assets: Credits to borrowers undergoing bankruptcy, corporate reorganization, and rehabilitation proceedings, as well as
claims of a similar nature
2. Doubtful assets: Credits for which final collection of principal and interest in line with original agreements is highly improbable due to deterioration of
financial position and business performance, but not insolvency of the borrower
3. Substandard loans: Past due loans (3 months or more) and restructured loans, excluding 1. and 2.
4. Normal assets: Credits to borrowers with good business performance and in financial standing without identified problems and not classified into the 3
categories above
149
SMFGAssets and Liabilities (Consolidated)SMFG 2013
Securities
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Overseas operations:
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Unallocated corporate assets:
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
¥26,994,438
355,883
3,015,019
2,986,503
5,432,893
¥38,784,738
¥ —
—
—
—
2,473,424
¥ 2,473,424
¥ —
—
—
48,568
—
¥ 48,568
¥41,306,731
¥29,327,057
474,884
3,155,712
2,567,288
5,015,264
¥40,540,207
¥ —
—
—
997
1,941,863
¥ 1,942,861
¥ —
—
—
46,881
—
¥ 46,881
¥42,529,950
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and
overseas consolidated subsidiaries.
2. “Others” include foreign bonds and foreign stocks.
Trading Assets and Liabilities
Domestic
March 31
operations
Trading assets ........................................................... ¥7,101,829
Trading securities .................................................. 3,185,210
Derivatives of trading securities ............................
3,614
Securities related to trading transactions .............
—
Derivatives of securities related to
trading transactions ............................................
26,022
Trading-related financial derivatives ..................... 3,699,030
Other trading assets..............................................
187,952
2013
2012
Millions of yen
Overseas
operations Elimination
¥(60,261)
¥723,986
35,647
—
—
Total
¥7,765,554
— 3,220,858
3,614
—
—
—
Domestic
operations
¥7,546,567
4,008,205
3,419
—
¥698,785
19,403
—
—
Overseas
operations Elimination
¥(48,408)
Total
¥8,196,944
— 4,027,609
3,419
—
—
—
22
688,317
—
—
(60,261)
—
26,044
4,327,085
187,952
19,498
3,262,485
252,958
5
674,615
4,759
—
(48,408)
—
19,503
3,888,692
257,718
Trading liabilities ........................................................ ¥5,454,843
Trading securities sold for short sales .................. 1,906,428
Derivatives of trading securities ............................
11,010
¥725,049
3,700
716
¥(60,261)
¥6,119,631
— 1,910,129
11,727
—
¥5,505,475
2,169,852
7,409
¥790,993
3,005
43
¥(48,408)
¥6,248,061
— 2,172,857
7,453
—
Securities related to trading transactions
sold for short sales ..............................................
—
—
—
—
—
—
—
—
Derivatives of securities related to
trading transactions ............................................
29,372
Trading-related financial derivatives ..................... 3,508,033
Other trading liabilities ..........................................
—
24
720,607
—
—
(60,261)
—
29,396
4,168,379
—
17,442
3,310,771
—
13
787,931
—
—
(48,408)
—
17,455
4,050,294
—
Notes: 1. Domestic operations comprise the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. Overseas operations comprise the operations of the overseas branches of domestic consolidated banking subsidiaries and
overseas consolidated subsidiaries.
2. Intersegment transactions are reported in the “Elimination” column.
150
SMFGAssets and Liabilities (Consolidated)SMFG 2013
Capital (Nonconsolidated)
Sumitomo Mitsui Financial Group, Inc.
Change in Number of Shares Issued and Capital Stock
Number of shares issued
Capital stock
Capital reserve
Millions of yen
Changes
157,151
(16,700)
April 30, 2008*1 ........................................
May 16, 2008*2 ........................................
January 4, 2009*3 .................................... 781,189,672.23
June 22, 2009*4 ....................................... 219,700,000
July 27, 2009*5 ........................................
8,931,300
January 27, 2010*6 .................................. 340,000,000
January 28, 2010*7 ..................................
36,343,848
February 8, 2010*8 ...................................
(33,400)
February 10, 2010*9 .................................
20,000,000
April 1, 2011*10 ........................................
(70,001)
Balances
8,010,905.77
7,994,205.77
789,183,878
1,008,883,878
1,017,815,178
1,357,815,178
1,394,159,026
1,394,125,626
1,414,125,626
1,414,055,625
Changes
¥ —
—
—
413,695
16,817
459,477
—
—
27,028
—
Balances
¥1,420,877
1,420,877
1,420,877
1,834,572
1,851,389
2,310,867
2,310,867
2,310,867
2,337,895
2,337,895
Changes
¥ —
—
—
413,695
16,817
459,477
—
—
27,028
—
Balances
¥ 642,355
642,355
642,355
1,056,050
1,072,868
1,532,345
1,532,345
1,532,345
1,559,374
1,559,374
Remarks:
*1 Increase in shares of common stock of 157,151 as a result of exercise of rights to purchase all the shares of preferred stock (5th to 8th series Type 4)
*2 Decrease in shares of preferred stock (Type 4) of 16,700 as a result of cancellation of all the shares of preferred stock (5th to 8th series Type 4)
*3 Increase in shares of common stock of 781,189,672.23 as a result of 100-for-1 stock split
*4 Public offering: Common stock: 219,700,000 shares
Issue price: ¥3,766 Capitalization: ¥1,883
*5 Allotment to third parties: Common stock: 8,931,300 shares
*6 Public offering: Common stock: 340,000,000 shares
Issue price: ¥2,702.81 Capitalization: ¥1,351.405
Issue price: ¥3,766 Capitalization: ¥1,883
*7 Increase in shares of common stock of 36,343,848 as a result of exercise of rights to purchase all the shares of preferred stock (1st to 4th and 9th to 12th series
Type 4)
*8 Decrease in shares of preferred stock (Type 4) of 33,400 as a result of cancellation of all the shares of preferred stock (1st to 4th and 9th to 12th series Type 4)
*9 Allotment to third parties: Common stock: 20,000,000 shares
Issue price: ¥2,702.81 Capitalization: ¥1,351.405
*10 The number of shares of preferred stock (Type 6) decreased by 70,001 as a result of repurchase and cancellation of all the shares of preferred stock (1st series
Type 6)
Number of Shares Issued
March 31, 2013
Common stock ...............................................................................................................................................................
Total ................................................................................................................................................................................
Number of shares issued
1,414,055,625
1,414,055,625
151
SMFGSMFG 2013 Stock Exchange Listings
Tokyo Stock Exchange (First Section)
Osaka Securities Exchange (First Section)
Nagoya Stock Exchange (First Section)
New York Stock Exchange*
* SMFG listed its ADRs on the New York Stock Exchange.
Number of Common Shares, Classified by Type of Shareholders
March 31, 2013
Japanese government and local government ..................................................................
Financial institutions .........................................................................................................
Securities companies .......................................................................................................
Other institutions ..............................................................................................................
Foreign institutions ...........................................................................................................
Foreign individuals ...........................................................................................................
Individuals and others ......................................................................................................
Total ..................................................................................................................................
Fractional shares (shares) .................................................................................................
Number of
shareholders
7
363
91
8,121
913
245
313,967
323,707
—
Number of
units
4,774
4,250,090
635,587
1,441,645
5,918,516
3,822
1,861,061
14,115,495
2,506,125
Percentage of
total
0.03%
30.11
4.50
10.21
41.93
0.03
13.19
100.00%
—
Notes: 1. Of 3,860,472 shares in treasury stock, 38,604 units are included in “Individuals and others” and the remaining 72 shares are included in “Fractional shares.”
2. “Other institutions” and “Fractional shares” includes 30 units and 48 shares, held at Japan Securities Depository Center, Incorporated.
3. In the column “Fractional shares,” title in the Register of Shareholders is in the name of Sumitomo Mitsui Banking Corporation, but 60 of the shares listed
are not substantially in the ownership of the bank.
4. The number of shares constituting 1 unit is 100.
Principal Shareholders
March 31, 2013
Japan Trustee Services Bank, Ltd. (Trust Account) ......................................................................................
The Master Trust Bank of Japan, Ltd. (Trust Account) .................................................................................
Sumitomo Mitsui Banking Corporation ........................................................................................................
SSBT OD05 Omnibus Account — Treaty Clients*.......................................................................................
Japan Trustee Services Bank, Ltd. (Trust Account 9) ...................................................................................
State Street Bank and Trust Company 505225** .........................................................................................
Mellon Bank, N.A. as Agent for its Client Mellon Omnibus US Pension** ...................................................
Nomura Securities Co., Ltd. .........................................................................................................................
The Bank of New York, Treaty JASDEC Account*** .....................................................................................
NATSCUMCO**** ..........................................................................................................................................
Total ..............................................................................................................................................................
Number of
shares
76,570,818
70,319,200
56,160,924
38,096,284
27,142,700
22,957,272
17,660,849
17,347,000
14,973,601
14,283,505
355,512,153
Percentage of
shares outstanding
5.41%
4.97
3.97
2.69
1.91
1.62
1.24
1.22
1.05
1.01
25.14%
* Standing agent: The HongKong and Shanghai Banking Corporation Limited’s Tokyo Branch
** Standing agent: Mizuho Corporate Bank, Ltd.
*** Standing agent: The Bank of Tokyo-Mitsubishi UFJ, Ltd.
**** Standing agent: Sumitomo Mitsui Banking Corporation
Notes: 1. Pursuant to Article 67 of the Enforcement Ordinance of the Companies Act, the exercise of voting rights of common shares held by Sumitomo Mitsui
Banking Corporation is restricted. Likewise, for common shares held by the bank, title in the Register of Shareholders is in the name of the bank, but 60 of
the shares listed are not substantially in the ownership of the bank.
2. Sumitomo Mitsui Trust Bank, Limited has submitted a Report of Possession of Large Volume regarding its shareholding as of February 21, 2013. It stated
that Sumitomo Mitsui Trust Bank, Limited and two other shareholders hold common shares in SMFG as of February 15, 2013. But these three are not
included in the above Principal Shareholders because SMFG was unable to confirm the number of shares owned by them at the end of the fiscal year
under review.
The Report of Possession of Large Volume is detailed as follows.
Principal Shareholder: Sumitomo Mitsui Trust Bank, Limited (and two other joint shareholders)
Number of shares held: 70,423,800 (including joint ownership)
Shareholding ratio:
4.98%
3. Nomura Securities Co., Ltd. has submitted a Report of Possession of Large Volume regarding its shareholding as of October 22, 2012, and an amended
report regarding the above-mentioned as of October 23, 2012. It stated that Nomura Securities Co., Ltd. and two other shareholders hold common shares
in SMFG as of October 15, 2012. But these three are not included in the above Principal Shareholders because SMFG was unable to confirm the number
of shares owned by them at the end of the fiscal year under review.
The Report of Possession of Large Volume is detailed as follows.
Principal shareholder: Nomura Securities Co., Ltd. (and two other joint shareholders)
Number of shares held: 42,463,537 (including joint ownership)
Share holding ratio:
3.00%
152
SMFGCapital (Nonconsolidated)SMFG 2013
Stock Options
March 31
Number of shares granted........................................................................................................
Type of stock ............................................................................................................................
Issue price ................................................................................................................................
Amount capitalized when shares are issued ............................................................................
Exercise period of stock options ..............................................................................................
2013
99,000 shares
Common stock
¥2,216 per share
¥1,108 per share
From August 13, 2010 to August 12, 2040
Date of resolution: Meeting of the Board of Directors held on July 28, 2010
March 31
Number of shares granted........................................................................................................
Type of stock ............................................................................................................................
Issue price ................................................................................................................................
Amount capitalized when shares are issued ............................................................................
Exercise period of stock options ..............................................................................................
2013
262,700 shares
Common stock
¥1,873 per share
¥937 per share
From August 16, 2011 to August 15, 2041
Date of resolution: Meeting of the Board of Directors held on July 29, 2011
March 31
Number of shares granted........................................................................................................
Type of stock ............................................................................................................................
Issue price ................................................................................................................................
Amount capitalized when shares are issued ............................................................................
Exercise period of stock options ..............................................................................................
2013
279,400 shares
Common stock
¥2,043 per share
¥1,022 per share
From August 15, 2012 to August 14, 2042
Date of resolution: Meeting of the Board of Directors held on July 30, 2012
Common Stock Price Range
Stock Price Performance
Year ended March 31
High .......................................................................................
Low ........................................................................................
2013
¥4,255
2,231
2012
¥2,933
2,003
Notes: 1. Stock prices of common shares as quoted on the Tokyo Stock Exchange (First Section).
Yen
2011
¥3,355
2,235
2010
¥4,520
2,591
2009
¥9,640
2,585
2. SMFG implemented 100-for-1 stock split on January 4, 2009. Stock prices for the year ended March 31, 2009 are reported assuming that the stock split
had been effective from April 1, 2008.
Six-Month Performance
Yen
High ..............................................................
Low ...............................................................
October 2012
¥2,499
2,330
November 2012
¥2,675
2,357
December 2012
¥3,125
2,627
January 2013
¥3,690
3,090
February 2013
¥3,935
3,555
March 2013
¥4,255
3,685
Note: Stock prices of common shares as quoted on the Tokyo Stock Exchange (First Section).
153
SMFGCapital (Nonconsolidated)SMFG 2013
Income Analysis (Consolidated)
Sumitomo Mitsui Banking Corporation and Subsidiaries
Operating Income, Classified by Domestic and Overseas Operations
Year ended March 31
Domestic
operations
Interest income ..................................................... ¥1,096,908
Interest expenses ..................................................
237,412
Net interest income ...................................................
859,495
Trust fees ...................................................................
1,823
Fees and commissions .........................................
576,012
Fees and commissions payments ........................
122,477
Net fees and commissions ........................................
453,535
Trading income......................................................
198,848
Trading losses .......................................................
69,493
Net trading income ....................................................
129,354
Other operating income ........................................
308,105
Other operating expenses.....................................
84,618
Net other operating income.......................................
223,486
Millions of yen
2013
Overseas
operations Elimination
¥(105,774)
¥496,673
(105,459)
149,238
(315)
347,434
—
—
(2,831)
146,459
(272)
23,558
122,900
(2,558)
(57,747)
34,767
(57,747)
28,378
—
6,389
(617)
54,698
9,930
—
(617)
44,768
Total
¥1,487,807
281,192
1,206,615
1,823
719,640
145,763
573,877
175,868
40,124
135,744
362,186
94,549
267,637
Domestic
operations
¥1,200,347
234,598
965,749
1,736
561,482
126,179
435,302
203,699
9,273
194,426
234,609
57,071
177,537
2012
Overseas
operations Elimination
¥(100,773)
¥403,868
(100,890)
130,621
116
273,246
—
—
(2,550)
130,857
(785)
12,943
(1,764)
117,914
(44,676)
19,768
(44,676)
35,403
—
(15,634)
(427)
40,258
—
7,197
(427)
33,061
Total
¥1,503,442
264,329
1,239,113
1,736
689,790
138,337
551,452
178,791
—
178,791
274,440
64,269
210,171
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries. Overseas operations
comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
2. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest expenses” are shown
after deduction of expenses (2013, ¥7 million; 2012, ¥11 million) related to the management of money held in trust.
3. Intersegment transactions are reported in the “Elimination” column.
Average Balance, Interest and Earnings Yield of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Millions of yen
Year ended March 31
Average balance
Interest-earning assets ................................... ¥94,161,776
51,558,441
36,757,204
303,408
30,138
Loans and bills discounted .........................
Securities ....................................................
Call loans and bills bought .........................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Deposits with banks ...................................
2013
Interest
¥1,096,908
814,057
218,720
1,519
46
Earnings yield
1.16%
1.58
0.60
0.50
0.16
Average balance
¥ 95,201,464
53,624,379
35,812,965
329,845
33,409
2012
Interest
¥1,200,347
914,742
214,736
2,069
38
Earnings yield
1.26%
1.71
0.60
0.63
0.11
3,689,947
330,176
6,527
1,359
0.18
0.41
3,873,332
289,927
6,788
2,741
0.18
0.95
Interest-bearing liabilities ............................... ¥98,618,767
76,183,139
6,435,488
1,233,579
1,068,990
Deposits......................................................
Negotiable certificates of deposit ...............
Call money and bills sold ............................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Commercial paper ......................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
3,870,048
—
5,035,564
186,527
4,366,856
6,252
—
87,374
218
80,734
¥ 237,412
47,445
9,125
1,039
1,496
0.24%
0.06
0.14
0.08
0.14
0.16
—
1.74
0.12
1.85
¥100,596,463
74,584,401
6,690,572
1,434,354
1,034,285
¥ 234,598
54,758
10,128
1,563
1,047
3,849,958
—
8,585,479
278,485
3,917,314
6,828
—
89,062
417
68,933
0.23%
0.07
0.15
0.11
0.10
0.18
—
1.04
0.15
1.76
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries.
2. In principle, average balances are calculated by using daily balances. However, some consolidated subsidiaries use weekly, monthly or quarterly balances
instead.
3. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥1,598,185 million; 2012, ¥1,909,038
million).
4. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest-earning assets” are
shown after deduction of the average balance of money held in trust (2013, ¥17,906 million; 2012, ¥19,144 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2013, ¥17,906 million; 2012, ¥19,144 million) and corresponding
interest (2013, ¥7 million; 2012, ¥11 million).
154
SMBCSMFG 2013
Overseas Operations
Year ended March 31
Average balance
Interest-earning assets ................................... ¥24,914,597
14,696,165
2,176,455
1,141,432
285,240
Loans and bills discounted .........................
Securities ....................................................
Call loans and bills bought .........................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Deposits with banks ...................................
—
4,665,188
—
32,078
Millions of yen
2013
Interest
¥496,673
382,465
34,073
13,038
6,193
Earnings yield
1.99%
2.60
1.57
1.14
2.17
Average balance
¥18,397,039
11,192,798
1,402,073
830,607
193,189
2012
Interest
¥403,868
310,883
23,707
12,671
5,852
Earnings yield
2.20%
2.78
1.69
1.53
3.03
—
0.69
0.85%
0.59
0.62
0.53
0.44
—
3,726,846
—
27,382
¥12,284,079
7,419,165
2,981,411
376,447
647,974
¥130,621
48,104
22,399
2,032
2,646
¥149,238
49,448
32,638
3,508
4,805
Interest-bearing liabilities ............................... ¥17,503,492
8,410,034
5,264,852
659,919
1,081,172
Deposits .....................................................
Negotiable certificates of deposit ...............
Call money and bills sold ............................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Commercial paper ......................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
—
1,580,650
410,128
—
54,832
Notes: 1. Overseas operations comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
—
511,690
221,212
—
102,081
—
5,703
8,623
—
2,825
—
0.36
2.10
—
5.15
—
1,986
7,895
—
6,610
—
0.73
1.06%
0.65
0.75
0.54
0.41
—
0.39
3.57
—
6.48
2. In principle, average balances are calculated by using daily balances. However, some consolidated subsidiaries use weekly, monthly or quarterly balances
instead.
3. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥85,149 million; 2012, ¥71,493 million).
Total of Domestic and Overseas Operations
Year ended March 31
Average balance
Interest-earning assets ................................... ¥117,570,430
64,889,690
38,933,660
1,444,840
315,280
Loans and bills discounted .........................
Securities ....................................................
Call loans and bills bought .........................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Deposits with banks ...................................
Millions of yen
2013
Interest
¥1,487,807
1,119,939
252,439
14,557
6,240
Earnings yield
1.27%
1.73
0.65
1.01
1.98
Average balance
¥112,123,576
63,510,882
37,215,039
1,160,453
226,579
2012
Interest
¥1,503,442
1,153,439
238,443
14,741
5,890
Earnings yield
1.34%
1.82
0.64
1.27
2.60
3,689,947
4,870,733
6,527
32,978
0.18
0.68
3,873,332
3,862,569
6,788
29,512
0.18
0.76
Interest-bearing liabilities ............................... ¥114,579,932
84,429,208
11,700,340
1,893,498
2,150,064
Deposits......................................................
Negotiable certificates of deposit ...............
Call money and bills sold ............................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Commercial paper ......................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
3,870,048
1,580,650
4,080,888
186,527
4,421,689
¥ 281,192
96,394
41,763
4,547
6,300
6,252
5,703
19,415
218
83,559
0.25%
0.11
0.36
0.24
0.29
0.16
0.36
0.48
0.12
1.89
¥111,374,120
81,813,864
9,671,984
1,810,786
1,682,240
¥ 264,329
102,133
32,528
3,596
3,694
3,849,958
511,690
7,500,718
278,485
4,019,396
6,828
1,986
24,773
417
75,544
0.24%
0.12
0.34
0.20
0.22
0.18
0.39
0.33
0.15
1.88
Notes: 1. The figures above comprise totals for domestic and overseas operations after intersegment eliminations.
2. In principle, average balances are calculated by using daily balances. However, some consolidated subsidiaries use weekly, monthly or quarterly balances
instead.
3. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥1,682,995 million; 2012, ¥1,980,197
million).
4. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest-earning assets” are
shown after deduction of the average balance of money held in trust (2013, ¥17,906 million; 2012, ¥19,144 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2013, ¥17,906 million; 2012, ¥19,144 million) and corresponding
interest (2013, ¥7 million; 2012, ¥11 million).
155
SMBCIncome Analysis (Consolidated)SMFG 2013
Fees and Commissions
2013
2012
Millions of yen
Domestic
Year ended March 31
operations
Fees and commissions .............................................. ¥576,012
23,372
118,500
63,898
16,643
5,989
36,971
6,434
144,757
Deposits and loans ...............................................
Remittances and transfers ....................................
Securities-related business ...................................
Agency ..................................................................
Safe deposits ........................................................
Guarantees ............................................................
Credit card business .............................................
Investment trusts ..................................................
Overseas
operations Elimination
¥146,459
89,445
12,260
18,206
—
2
12,137
—
1,556
¥(2,831)
(11)
(1)
(1,538)
—
—
(142)
—
—
Total
¥719,640
112,805
130,760
80,566
16,643
5,991
48,965
6,434
146,314
Domestic
operations
¥561,482
22,408
118,183
56,610
16,805
6,323
42,030
6,298
122,610
Overseas
operations Elimination
¥130,857
70,789
9,704
25,625
—
2
11,892
—
1,567
¥(2,550)
(10)
(1)
(361)
—
—
(106)
—
—
Total
¥689,790
93,187
127,886
81,874
16,805
6,325
53,816
6,298
124,177
Fees and commissions payments ............................. ¥122,477
27,923
Remittances and transfers ....................................
¥ 23,558
16,381
¥ (272)
(59)
¥145,763
44,244
¥126,179
27,256
¥ 12,943
6,156
¥ (785)
(111)
¥138,337
33,301
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries. Overseas operations
comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
2. Intersegment transactions are reported in the “Elimination” column.
Trading Income
2013
2012
Millions of yen
Domestic
Year ended March 31
operations
Trading income .......................................................... ¥198,848
179,677
Gains on trading securities ...................................
Overseas
operations Elimination
¥(57,747)
(8,463)
¥34,767
—
Total
¥175,868
171,214
Domestic
operations
¥203,699
112,654
Overseas
operations Elimination
¥(44,676)
— (17,077)
¥19,768
Total
¥178,791
95,577
Gains on securities related to
trading transactions ............................................
Gains on trading-related financial derivatives .......
Others ...................................................................
4,225
14,577
367
60
34,707
—
—
(49,284)
—
4,286
—
367
7,313
83,188
542
320
18,739
708
—
(27,599)
—
7,634
74,328
1,251
Trading losses............................................................ ¥ 69,493
—
Losses on trading securities .................................
¥28,378
8,463
¥(57,747)
(8,463)
¥ 40,124
—
¥ 9,273
¥35,403
— 17,077
¥(44,676)
(17,077)
¥ —
—
Losses on securities related to
trading transactions ............................................
Losses on trading-related financial derivatives .....
Others ...................................................................
—
69,493
—
—
19,914
—
—
(49,284)
—
—
40,124
—
—
9,273
—
—
18,326
—
—
(27,599)
—
—
—
—
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries. Overseas operations
comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
2. Intersegment transactions are reported in the “Elimination” column.
156
SMBCIncome Analysis (Consolidated)SMFG 2013
Assets and Liabilities (Consolidated)
Sumitomo Mitsui Banking Corporation and Subsidiaries
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
Overseas operations:
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
Grand total ......................................................................................................
¥ 51,231,871
25,186,988
3,837,962
80,256,822
5,776,809
¥ 86,033,632
¥ 6,471,045
2,517,694
91,792
9,080,532
6,201,744
¥ 15,282,277
¥101,315,909
¥48,688,932
25,121,952
3,796,048
77,606,933
5,518,289
¥83,125,222
¥ 4,855,580
1,745,146
121,331
6,722,058
3,266,149
¥ 9,988,207
¥93,113,430
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries. Overseas operations
comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
2. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
3. Fixed-term deposits = Time deposits + Installment savings
Balance of Loan Portfolio, Classified by Industry
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Manufacturing..............................................................................................
Agriculture, forestry, fisheries and mining ...................................................
Construction ................................................................................................
Transportation, communications and public enterprises ............................
Wholesale and retail ....................................................................................
Finance and insurance ................................................................................
Real estate, goods rental and leasing .........................................................
Services .......................................................................................................
Municipalities ...............................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
¥ 5,995,285
150,712
886,516
4,264,739
4,136,162
5,697,927
7,544,508
4,011,560
1,115,839
18,951,459
¥52,754,711
11.36%
0.29
1.68
8.09
7.84
10.80
14.30
7.60
2.12
35.92
100.00%
¥ 6,071,389
137,101
896,269
4,221,483
4,095,171
4,904,325
7,377,705
3,684,426
1,054,492
20,433,201
¥52,875,567
11.48%
0.26
1.70
7.98
7.75
9.28
13.95
6.97
1.99
38.64
100.00%
Overseas operations:
Public sector ................................................................................................
Financial institutions ....................................................................................
Commerce and industry ..............................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries. Overseas operations
¥ 73,593
510,896
9,086,200
1,038,510
¥10,709,200
¥63,584,767
¥ 62,765
619,212
11,783,976
1,445,071
¥13,911,026
¥66,665,737
0.45%
4.45
84.71
10.39
100.00%
—
0.69%
4.77
84.84
9.70
100.00%
—
comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
2. Japan offshore banking accounts are included in overseas operations’ accounts.
157
SMBCSMFG 2013
Risk-Monitored Loans
March 31
Bankrupt loans ................................................................................................
Non-accrual loans ...........................................................................................
Past due loans (3 months or more) .................................................................
Restructured loans ..........................................................................................
Total .................................................................................................................
Amount of direct reduction ..............................................................................
Notes: Definition of risk-monitored loan categories
2013
¥ 54,846
1,006,497
9,953
422,509
¥1,493,807
¥ 549,257
Millions of yen
2012
¥ 73,378
1,060,320
18,178
507,428
¥1,659,306
¥ 558,926
1. Bankrupt loans: Credits for which accrued interest is not accounted in revenue; credits extended to borrowers that are undergoing bankruptcy,
corporate reorganization and rehabilitation proceedings or debtors receiving orders of disposition by suspension of business at bill clearinghouses
2. Non-accrual loans: Credits for which accrued interest is not accounted in revenue; credits, excluding loans to bankrupt borrowers and loans with grace for
interest payment to assist in corporate reorganization or to support business
3. Past due loans (3 months or more): Loans with payment of principal or interest in arrears for more than 3 months, calculated from the day following the
contractual due date, excluding borrowers in categories 1. and 2.
4. Restructured loans: Loans to borrowers in severe financial condition given certain favorable terms and conditions to assist in corporate rehabilitation or to
support business, excluding borrowers in categories 1. through 3.
Securities
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
¥26,994,415
355,883
3,005,080
3,097,093
5,367,925
¥38,820,398
Overseas operations:
¥29,327,057
474,884
3,139,021
2,559,850
4,935,459
¥40,436,272
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries. Overseas operations
¥ —
—
—
—
2,473,607
¥ 2,473,607
¥41,294,005
¥ —
—
—
997
1,941,924
¥ 1,942,921
¥42,379,194
comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
2. “Others” include foreign bonds and foreign stocks.
Trading Assets and Liabilities
Domestic
March 31
operations
Trading assets ........................................................... ¥6,955,688
Trading securities .................................................. 3,035,233
Derivatives of trading securities ............................
3,420
Securities related to trading transactions .............
—
Derivatives of securities related to
trading transactions ............................................
26,022
Trading-related financial derivatives ..................... 3,703,059
Other trading assets..............................................
187,952
2013
2012
Millions of yen
Overseas
operations Elimination
¥(60,261)
¥723,986
35,647
—
—
Total
¥7,619,413
— 3,070,881
3,420
—
—
—
Domestic
operations
¥7,450,723
3,909,420
3,356
—
¥698,785
19,403
—
—
Overseas
operations Elimination
¥(48,408)
Total
¥8,101,100
— 3,928,824
3,356
—
—
—
22
688,317
—
—
(60,261)
—
26,044
4,331,114
187,952
19,498
3,265,489
252,958
5
674,615
4,759
—
(48,408)
—
19,503
3,891,697
257,718
Trading liabilities ........................................................ ¥5,419,265
Trading securities sold for short sales .................. 1,866,854
Derivatives of trading securities ............................
10,977
¥725,049
3,700
716
¥(60,261)
¥6,084,053
— 1,870,555
11,694
—
¥5,465,502
2,126,877
7,406
¥790,993
3,005
43
¥(48,408)
¥6,208,087
— 2,129,882
7,450
—
Securities related to trading transactions
sold for short sales ..............................................
—
—
—
—
—
—
—
—
Derivatives of securities related to
trading transactions ............................................
29,372
Trading-related financial derivatives ..................... 3,512,062
Other trading liabilities ..........................................
—
24
720,607
—
—
(60,261)
—
29,396
4,172,408
—
17,442
3,313,775
—
13
787,931
—
—
(48,408)
—
17,455
4,053,298
—
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches) and its domestic consolidated subsidiaries. Overseas operations
comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
2. Intersegment transactions are reported in the “Elimination” column.
158
SMBCAssets and Liabilities (Consolidated)SMFG 2013
Total
¥1,239,535
[18,356]
282,656
[18,356]
956,878
1,736
453,877
134,989
318,887
84,051
—
84,051
193,341
22,384
170,957
¥1,532,511
Total
¥1,270,673
[22,545]
299,470
[22,545]
971,202
1,823
489,310
145,572
343,738
5,780
9,562
(3,781)
278,366
51,254
227,112
¥1,540,095
Income Analysis (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Gross Banking Profit, Classified by Domestic and International Operations
Millions of yen
Year ended March 31
Domestic
operations
Interest income ........................................... ¥ 897,934
2013
International
operations
¥395,284
Interest expenses .......................................
84,297
237,718
Domestic
operations
¥ 948,581
2012
International
operations
¥309,310
99,330
201,682
Net interest income ........................................
813,636
Trust fees ........................................................
1,800
Fees and commissions ...............................
350,989
Fees and commissions payments ..............
117,753
Net fees and commissions .............................
233,235
Trading income ...........................................
1,443
Trading losses .............................................
—
Net trading income .........................................
1,443
Other operating income ..............................
65,875
Other operating expenses ..........................
17,080
Net other operating income............................
48,795
Gross banking profit ....................................... ¥1,098,912
Gross banking profit rate (%) .........................
Notes: 1. Domestic operations include yen-denominated transactions by domestic branches, while international operations include foreign-currency-denominated
849,250
1,716
332,461
117,331
215,129
5,112
—
5,112
41,225
14,674
26,550
¥1,097,760
157,565
22
138,321
27,818
110,503
4,336
9,562
(5,225)
212,490
34,174
178,316
¥441,182
107,627
20
121,416
17,658
103,757
78,938
—
78,938
152,116
7,709
144,406
¥434,750
1.35%
1.66%
2.15%
1.46%
1.33%
1.53%
transactions by domestic branches and operations by overseas branches. Yen-denominated nonresident transactions and Japan offshore banking
accounts are included in international operations.
2. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest expenses” are shown
after deduction of expenses (2013, ¥7 million; 2012, ¥11 million) related to the management of money held in trust.
3. Figures in brackets [ ] indicate interest payments between domestic and international operations. As net interest figures are shown for interest rate swaps
and similar instruments, some figures for domestic and international operations do not add up to their sums.
4. Gross banking profit rate = Gross banking profit / Average balance of interest-earning assets ✕ 100
Average Balance, Interest and Earnings Yield of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Millions of yen
Average balance
Year ended March 31
Interest-earning assets ................................... ¥80,951,335
[2,554,901]
44,448,446
33,051,536
48,578
—
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
453,540
22,164
6,356
Interest-bearing liabilities ............................... ¥79,485,870
66,400,621
6,682,323
975,392
54,020
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
756,437
1,340,082
18,652
2,686,884
2013
Interest
¥897,934
[22,545]
680,256
182,723
249
—
1,101
780
1
¥ 84,297
29,454
9,690
588
55
692
8,087
14
34,640
Earnings yield
1.10%
1.53
0.55
0.51
—
0.24
3.52
0.01
0.10%
0.04
0.14
0.06
0.10
0.09
0.60
0.08
1.28
Average balance
¥82,116,956
[2,256,767]
46,332,489
32,774,374
69,145
—
354,424
21,255
28,737
¥81,785,205
64,890,957
6,911,391
1,151,288
36,443
1,095,569
4,565,547
41,991
2,746,423
2012
Interest
¥948,581
[18,356]
727,683
181,709
334
—
1,150
992
973
¥ 99,330
34,706
10,766
746
37
840
11,828
37
39,502
Earnings yield
1.15%
1.57
0.55
0.48
—
0.32
4.67
3.38
0.12%
0.05
0.15
0.06
0.10
0.07
0.25
0.08
1.43
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥1,460,002 million; 2012, ¥1,720,001
million).
2. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest-earning assets” are
shown after deduction of the average balance of money held in trust (2013, ¥7,026 million; 2012, ¥9,418 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2013, ¥7,026 million; 2012, ¥9,418 million) and corresponding inter-
est (2013, ¥7 million; 2012, ¥11 million).
3. Figures in brackets [ ] indicate the average balances of interdepartmental lending and borrowing activities between domestic and international operations
and related interest expenses. As net interest figures are shown for interest rate swaps and similar instruments, some figures for domestic and international
operations do not add up to their sums.
159
SMBCSMFG 2013
International Operations
Year ended March 31
Average balance
Interest-earning assets ................................... ¥26,563,501
13,720,874
6,209,456
426,423
252,039
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
107,735
—
4,063,289
Interest-bearing liabilities ............................... ¥25,239,631
[2,554,901]
8,906,133
4,983,840
543,160
1,346,096
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Bonds .........................................................
2013
Interest
¥395,284
273,860
63,193
3,765
5,009
499
—
19,439
¥237,718
[22,545]
31,036
31,340
2,256
5,255
Millions of yen
Earnings yield
1.48%
1.99
1.01
0.88
1.98
Average balance
¥20,174,556
10,325,773
4,639,440
367,770
166,832
0.46
—
0.47
0.94%
0.34
0.62
0.41
0.39
33,729
—
3,386,786
¥19,566,597
[2,256,767]
8,674,514
2,707,987
385,370
624,905
2012
Interest
¥309,310
209,719
44,921
4,485
3,726
180
—
17,651
¥201,682
[18,356]
33,629
20,133
1,926
2,012
Earnings yield
1.53%
2.03
0.96
1.21
2.23
0.53
—
0.52
1.03%
0.38
0.74
0.50
0.32
3,996
81,060
44,244
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥66,076 million; 2012, ¥57,688 million).
2. Figures in brackets [ ] indicate the average balances of interdepartmental lending and borrowing activities between domestic and international operations
1,684,650
1,920,820
1,470,467
1,431,495
1,687,700
1,071,387
4,478
76,900
30,989
0.23
4.22
3.00
0.31
4.55
2.89
and related interest expenses. As net interest figures are shown for interest rate swaps and similar instruments, some figures for domestic and international
operations do not add up to their sums.
3. The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly current
method, under which the TT middle rate at the end of the previous month is applied to nonexchange transactions of the month concerned.
Total of Domestic and International Operations
Year ended March 31
Average balance
Interest-earning assets ................................... ¥104,959,935
58,169,321
39,260,992
475,002
252,039
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
561,276
22,164
4,069,646
1,601
780
19,440
Interest-bearing liabilities ............................... ¥102,170,601
75,306,754
11,666,164
1,518,553
1,400,116
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
2,441,087
3,260,903
18,652
4,157,351
4,688
89,147
14
78,885
¥ 299,470
60,491
41,030
2,844
5,311
Millions of yen
2013
Interest
¥1,270,673
954,116
245,917
4,015
5,009
Earnings yield
1.21%
1.64
0.62
0.84
1.98
Average balance
¥100,034,745
56,658,263
37,413,814
436,915
166,832
2012
Interest
¥1,239,535
937,403
226,631
4,819
3,726
Earnings yield
1.23%
1.65
0.60
1.10
2.23
0.28
3.52
0.47
0.29%
0.08
0.35
0.18
0.37
0.19
2.73
0.08
1.89
388,154
21,255
3,415,524
1,330
992
18,625
¥ 99,095,035
73,565,472
9,619,379
1,536,659
661,348
¥ 282,656
68,335
30,899
2,673
2,050
2,527,065
6,253,248
41,991
3,817,810
5,318
88,729
37
70,492
0.34
4.67
0.54
0.28%
0.09
0.32
0.17
0.30
0.21
1.41
0.08
1.84
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2013, ¥1,526,078 million; 2012, ¥1,777,690
million).
2. Income and expenses resulting from money held in trust are included in “Other income” and “Other expenses.” Therefore, “Interest-earning assets” are
shown after deduction of the average balance of money held in trust (2013, ¥7,026 million; 2012, ¥9,418 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2013, ¥7,026 million; 2012, ¥9,418 million) and corresponding inter-
est (2013, ¥7 million; 2012, ¥11 million).
3. Figures in the table above indicate the net average balances of amounts adjusted for interdepartmental lending and borrowing activities between domestic
and international operations and related interest expenses.
160
SMBCIncome Analysis (Nonconsolidated)SMFG 2013
Breakdown of Interest Income and Interest Expenses
Domestic Operations
Millions of yen
Volume-related
increase
(decrease)
¥(13,323)
(29,125)
1,532
(99)
—
2013
Rate-related
increase
(decrease)
¥(37,322)
(18,301)
(517)
14
—
Year ended March 31
Interest income ...............................................
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
Interest expenses ...........................................
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
International Operations
240
32
(427)
¥ (2,728)
669
(348)
(108)
18
(260)
(8,356)
(19)
(841)
Year ended March 31
Interest income ...............................................
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Deposits with banks ...................................
Interest expenses ...........................................
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Bonds .........................................................
Volume-related
increase
(decrease)
¥95,072
67,764
15,876
517
1,693
343
3,236
¥53,431
807
14,311
655
2,739
600
9,837
11,962
(289)
(244)
(545)
¥(12,304)
(5,921)
(727)
(49)
(0)
111
4,615
(3)
(4,021)
2013
Rate-related
increase
(decrease)
¥ (9,098)
(3,623)
2,395
(1,237)
(410)
(23)
(1,448)
¥(17,395)
(3,399)
(3,104)
(326)
504
(1,081)
(5,678)
1,291
Net
increase
(decrease)
¥(50,646)
(47,427)
1,014
(84)
—
(48)
(212)
(972)
¥(15,032)
(5,251)
(1,075)
(158)
17
(148)
(3,741)
(22)
(4,862)
Volume-related
increase
(decrease)
¥58,092
(19,537)
29,906
31
—
2012
Rate-related
increase
(decrease)
¥(95,485)
(36,799)
(30,722)
(19)
—
(485)
(239)
(329)
¥ 6,696
1,718
(870)
(20)
(44)
(55)
6,808
(17)
3,198
(583)
9
825
¥(25,756)
(17,569)
(1,506)
(203)
(6)
(105)
(4,630)
(11)
(3,166)
Millions of yen
Net
increase
(decrease)
¥85,973
64,140
18,271
(719)
1,283
319
1,787
¥36,035
(2,592)
11,207
329
3,243
(481)
4,159
13,254
Volume-related
increase
(decrease)
¥36,156
32,995
(8,184)
439
2,568
2012
Rate-related
increase
(decrease)
¥(2,542)
3,562
(4,748)
659
399
146
6,238
¥24,224
3,347
5,762
543
242
(2,432)
(681)
6,120
(11)
(1,834)
¥ 2,002
2,322
(4,383)
(146)
44
663
1,127
1,358
Total of Domestic and International Operations
Millions of yen
Year ended March 31
Interest income ...............................................
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
Interest expenses ...........................................
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
Volume-related
increase
(decrease)
¥59,626
24,784
11,414
321
1,693
2013
Rate-related
increase
(decrease)
¥(28,487)
(8,071)
7,871
(1,126)
(410)
493
32
3,124
¥ 8,900
1,398
7,006
(31)
2,717
(176)
(42,459)
(19)
6,401
(222)
(244)
(2,309)
¥ 7,913
(9,242)
3,124
202
544
(453)
42,877
(3)
1,990
Net
increase
(decrease)
¥31,138
16,713
19,286
(804)
1,283
270
(212)
815
¥16,813
(7,844)
10,131
170
3,261
(629)
418
(22)
8,392
Volume-related
increase
(decrease)
¥78,928
7,002
27,727
467
2,568
2012
Rate-related
increase
(decrease)
¥(98,796)
(26,780)
(41,476)
643
399
(388)
(239)
6,178
¥19,533
3,810
837
144
97
(2,024)
37,075
(17)
8,050
(544)
9
(1,277)
¥(28,455)
(13,991)
(1,836)
29
138
94
(34,451)
(11)
(539)
Note: Volume/rate variance is prorated according to changes in volume and rate.
Net
increase
(decrease)
¥(37,393)
(56,336)
(816)
12
—
(1,068)
(230)
496
¥(19,059)
(15,851)
(2,377)
(223)
(50)
(160)
2,177
(29)
32
Net
increase
(decrease)
¥33,613
36,558
(12,932)
1,099
2,968
135
4,403
¥26,226
5,670
1,378
397
286
(1,768)
445
7,479
Net
increase
(decrease)
¥(19,868)
(19,778)
(13,749)
1,111
2,968
(932)
(230)
4,900
¥ (8,921)
(10,181)
(998)
173
235
(1,929)
2,623
(29)
7,511
161
SMBCIncome Analysis (Nonconsolidated)SMFG 2013 Fees and Commissions
Year ended March 31
Fees and commissions ...................................
Deposits and loans .....................................
Remittances and transfers .........................
Securities-related business ........................
Agency ........................................................
Safe deposits ..............................................
Guarantees .................................................
Domestic
operations
¥350,989
11,563
91,223
11,669
12,501
5,554
18,620
2013
International
operations
¥138,321
67,958
29,007
1,557
—
—
18,112
Fees and commissions payments ..................
Remittances and transfers .........................
¥117,753
21,924
¥ 27,818
19,238
Millions of yen
Total
¥489,310
79,521
120,230
13,226
12,501
5,554
36,733
¥145,572
41,162
Domestic
operations
¥332,461
11,241
91,257
11,895
12,459
5,876
19,382
2012
International
operations
¥121,416
55,559
26,190
1,476
—
—
15,437
¥117,331
21,355
¥ 17,658
8,664
Total
¥453,877
66,800
117,447
13,372
12,459
5,876
34,819
¥134,989
30,019
Trading Income
Year ended March 31
Trading income ...............................................
Gains on trading securities .........................
Gains on securities related to
trading transactions ..................................
Gains on trading-related
financial derivatives ..................................
Others .........................................................
Trading losses ................................................
Losses on trading securities .......................
Losses on securities related to
trading transactions ..................................
Losses on trading-related
financial derivatives ..................................
Others .........................................................
Millions of yen
Domestic
operations
¥1,443
1,125
2013
International
operations
¥4,336
—
Total
¥5,780
1,125
Domestic
operations
¥5,112
4,644
2012
International
operations
¥78,938
—
Total
¥84,051
4,644
—
—
317
¥ —
—
—
—
—
4,286
4,286
—
49
¥9,562
—
—
9,562
—
—
367
¥9,562
—
—
9,562
—
—
—
467
¥ —
—
—
—
—
7,634
7,634
71,229
74
¥ —
—
—
—
—
71,229
542
¥ —
—
—
—
—
Note: Figures represent net gains after offsetting income against expenses.
Net Other Operating Income (Expenses)
Year ended March 31
Net other operating income (expenses) .........
Gains on bonds ..........................................
Gains (losses) on derivatives ......................
Losses on foreign exchange transactions ...
General and Administrative Expenses
Millions of yen
Domestic
operations
¥48,795
40,679
(829)
—
2013
International
operations
¥178,316
73,169
(7,262)
111,289
Total
¥227,112
113,849
(8,092)
111,289
Domestic
operations
¥26,550
23,192
(857)
—
2012
International
operations
¥144,406
129,343
(1,092)
16,134
Total
¥170,957
152,536
(1,950)
16,134
Year ended March 31
Salaries and related expenses ........................................................................
Retirement benefit cost ...................................................................................
Welfare expenses ............................................................................................
Depreciation ....................................................................................................
Rent and lease expenses ................................................................................
Building and maintenance expenses ..............................................................
Supplies expenses ..........................................................................................
Water, lighting, and heating expenses.............................................................
Traveling expenses ..........................................................................................
Communication expenses ...............................................................................
Publicity and advertising expenses .................................................................
Taxes, other than income taxes.......................................................................
Deposit insurance ............................................................................................
Others ..............................................................................................................
Total .................................................................................................................
2013
¥226,365
13,183
36,800
79,240
63,381
3,567
5,181
5,202
4,552
7,049
4,905
38,440
46,237
193,627
¥727,736
Millions of yen
2012
¥218,698
13,823
33,537
75,503
62,334
4,711
5,179
4,925
4,098
7,040
6,443
36,858
52,762
193,577
¥719,495
162
SMBCIncome Analysis (Nonconsolidated)SMFG 2013 Deposits (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
¥48,253,598
21,222,265
663,174
70,139,039
5,930,739
¥76,069,778
International operations:
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
Grand total ......................................................................................................
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
¥ 4,922,541
1,724,955
3,219,902
9,867,399
5,991,159
¥15,858,558
¥91,928,337
2. Fixed-term deposits = Time deposits + Installment savings
63.4%
27.9
0.9
92.2
7.8
100.0%
31.0%
10.9
20.3
62.2
37.8
100.0%
—
¥46,015,298
21,124,529
555,076
67,694,904
5,595,075
¥73,289,979
¥ 3,538,401
1,209,344
3,361,438
8,109,184
2,993,670
¥11,102,855
¥84,392,835
62.8%
28.8
0.8
92.4
7.6
100.0%
31.8%
10.9
30.3
73.0
27.0
100.0%
—
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2013
2012
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
¥44,618,302
21,273,163
509,155
66,400,621
6,682,323
¥73,082,944
International operations:
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
Grand total ......................................................................................................
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
¥ 4,544,011
1,459,551
2,902,570
8,906,133
4,983,840
¥13,889,974
¥86,972,919
¥42,971,869
21,474,423
444,665
64,890,957
6,911,391
¥71,802,349
¥ 4,522,150
1,101,535
3,050,828
8,674,514
2,707,987
¥11,382,502
¥83,184,851
2. Fixed-term deposits = Time deposits + Installment savings
3. The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly current
method.
Balance of Deposits, Classified by Type of Depositor
March 31
Individual .........................................................................................................
Corporate ........................................................................................................
Total .................................................................................................................
Notes: 1. Negotiable certificates of deposit are excluded.
Millions of yen
2013
¥38,827,723
33,819,677
¥72,647,400
53.4%
46.6
100.0%
2012
¥37,696,735
32,593,932
¥70,290,667
53.6%
46.4
100.0%
2. Accounts at overseas branches and Japan offshore banking accounts are excluded.
3. The figures above are after adjustment on inter-office accounts in transit. Previously released figures for March 31, 2012 on before-adjustment basis, have
been adjusted retrospectively.
163
SMBCSMFG 2013
Balance of Investment Trusts, Classified by Type of Customer
Millions of yen
March 31
Individual .........................................................................................................
Corporate ........................................................................................................
Total .................................................................................................................
Note: Balance of investment trusts is recognized on a contract basis and measured according to each fund’s net asset balance at the fiscal year-end.
2013
¥2,686,235
345,683
¥3,031,918
2012
¥2,421,481
314,331
¥2,735,812
Balance of Time Deposits, Classified by Maturity
March 31
Less than three months ...................................................................................
Fixed interest rates ......................................................................................
Floating interest rates ..................................................................................
Others ..........................................................................................................
Three — six months .......................................................................................
Fixed interest rates ......................................................................................
Floating interest rates ..................................................................................
Others ..........................................................................................................
Six months — one year ..................................................................................
Fixed interest rates ......................................................................................
Floating interest rates ..................................................................................
Others ..........................................................................................................
One — two years ............................................................................................
Fixed interest rates ......................................................................................
Floating interest rates ..................................................................................
Others ..........................................................................................................
Two — three years ..........................................................................................
Fixed interest rates ......................................................................................
Floating interest rates ..................................................................................
Others ..........................................................................................................
Three years or more ........................................................................................
Fixed interest rates ......................................................................................
Floating interest rates ..................................................................................
Others ..........................................................................................................
Total .................................................................................................................
Fixed interest rates ......................................................................................
Floating interest rates ..................................................................................
Others ..........................................................................................................
Note: The figures above do not include installment savings.
2013
¥ 8,615,190
7,051,007
54,213
1,509,970
4,330,621
4,162,945
86,309
81,367
5,971,613
5,668,401
177,919
125,291
1,805,436
1,670,172
132,154
3,108
1,197,298
1,120,995
76,302
0
1,027,019
529,243
492,559
5,217
¥22,947,180
20,202,765
1,019,459
1,724,955
Millions of yen
2012
¥ 8,061,223
6,931,819
24,616
1,104,787
4,417,587
4,330,740
35,133
51,714
5,944,888
5,846,969
50,909
47,009
1,464,345
1,371,815
88,433
4,096
1,264,926
1,145,324
119,508
93
1,180,859
542,011
637,205
1,642
¥22,333,832
20,168,681
955,806
1,209,344
164
SMBCDeposits (Nonconsolidated)SMFG 2013 Loans (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Balance of Loans and Bills Discounted
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Loans on notes ............................................................................................
Loans on deeds ...........................................................................................
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
Subtotal .......................................................................................................
International operations:
Loans on notes ............................................................................................
Loans on deeds ...........................................................................................
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
¥ 930,005
35,490,809
8,630,789
140,274
¥45,191,878
¥ 785,108
13,649,153
144,622
—
¥14,578,885
¥59,770,763
¥ 1,216,941
35,678,924
8,308,672
151,855
¥45,356,393
¥ 506,700
10,436,568
111,830
—
¥11,055,098
¥56,411,492
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2013
2012
Loans on notes ............................................................................................
Loans on deeds ...........................................................................................
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
Subtotal .......................................................................................................
¥ 1,089,277
34,911,708
8,327,167
120,292
¥44,448,446
International operations:
¥ 1,365,314
36,768,819
8,072,784
125,570
¥46,332,489
¥ 518,305
Loans on notes ............................................................................................
9,689,941
Loans on deeds ...........................................................................................
117,526
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
—
¥10,325,773
Subtotal .......................................................................................................
¥56,658,263
Total .................................................................................................................
Note: The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly
¥ 656,326
12,914,024
150,523
—
¥13,720,874
¥58,169,321
current method.
Balance of Loans and Bills Discounted, Classified by Purpose
March 31
Funds for capital investment ...........................................................................
Funds for working capital ................................................................................
Total .................................................................................................................
2013
¥20,838,299
38,932,464
¥59,770,763
34.9%
65.1
100.0%
2012
¥20,802,161
35,609,330
¥56,411,492
36.9%
63.1
100.0%
Millions of yen
Balance of Loans and Bills Discounted, Classified by Collateral
March 31
Securities .........................................................................................................
Commercial claims ..........................................................................................
Commercial goods ..........................................................................................
Real estate .......................................................................................................
Others ..............................................................................................................
Subtotal ...........................................................................................................
Guaranteed ......................................................................................................
Unsecured .......................................................................................................
Total .................................................................................................................
2013
¥ 526,510
1,020,675
—
6,468,203
900,384
8,915,773
18,820,060
32,034,929
¥59,770,763
Millions of yen
2012
¥ 469,939
996,724
—
6,586,174
718,816
8,771,654
19,906,243
27,733,594
¥56,411,492
165
SMBCSMFG 2013 Balance of Loans and Bills Discounted, Classified by Maturity
Millions of yen
March 31
One year or less ..............................................................................................
One — three years .........................................................................................
Floating interest rates ..................................................................................
Fixed interest rates ......................................................................................
Three — five years ..........................................................................................
Floating interest rates ..................................................................................
Fixed interest rates ......................................................................................
Five — seven years ........................................................................................
Floating interest rates ..................................................................................
Fixed interest rates ......................................................................................
More than seven years ....................................................................................
Floating interest rates ..................................................................................
Fixed interest rates ......................................................................................
No designated term .........................................................................................
Floating interest rates ..................................................................................
Fixed interest rates ......................................................................................
Total .................................................................................................................
Note: Loans with a maturity of one year or less are not classified by floating or fixed interest rates.
2013
¥ 9,523,787
9,108,573
7,368,894
1,739,678
8,541,693
6,926,235
1,615,458
4,069,630
3,421,755
647,875
19,751,666
18,838,219
913,446
8,775,412
8,775,412
—
¥59,770,763
2012
¥ 8,819,333
9,011,403
7,168,306
1,843,096
7,278,348
5,971,385
1,306,963
3,413,005
2,893,753
519,252
19,468,898
18,538,698
930,199
8,420,502
8,420,502
—
¥56,411,492
Balance of Loan Portfolio, Classified by Industry
March 31
Domestic operations:
Millions of yen
2013
2012
Manufacturing..............................................................................................
Agriculture, forestry, fisheries and mining ...................................................
Construction ................................................................................................
Transportation, communications and public enterprises ............................
Wholesale and retail ....................................................................................
Finance and insurance ................................................................................
Real estate, goods rental and leasing .........................................................
Services .......................................................................................................
Municipalities ...............................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
¥ 5,624,822
147,588
702,929
4,026,851
3,740,820
6,253,616
6,334,343
3,496,804
992,233
16,273,333
¥47,593,343
11.8%
0.3
1.5
8.5
7.9
13.1
13.3
7.3
2.1
34.2
100.0%
¥ 5,701,247
133,829
714,741
3,988,144
3,691,342
5,828,625
6,185,671
3,197,121
949,628
16,827,603
¥47,217,955
12.1%
0.3
1.5
8.5
7.8
12.3
13.1
6.8
2.0
35.6
100.0%
Overseas operations:
Public sector ................................................................................................
Financial institutions ....................................................................................
Commerce and industry ..............................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches). Overseas operations comprise the operations of SMBC’s overseas
¥ 47,641
624,804
7,828,495
692,595
¥ 9,193,536
¥56,411,492
¥ 36,664
899,404
10,344,435
896,914
¥12,177,419
¥59,770,763
0.5%
6.8
85.2
7.5
100.0%
—
0.3%
7.4
84.9
7.4
100.0%
—
branches.
2. Japan offshore banking accounts are included in overseas operations’ accounts.
Loans to Individuals/Small and Medium-Sized Enterprises
Millions of yen
March 31
Total domestic loans (A) ..................................................................................
Loans to individuals, and small and medium-sized enterprises (B) ................
(B) / (A) .............................................................................................................
Notes: 1. The figures above exclude the outstanding balance of loans at overseas branches and of Japan offshore banking accounts.
2013
¥47,593,343
33,091,729
69.5%
2012
¥47,217,955
33,230,726
70.4%
2. Small and medium-sized enterprises are individuals or companies with capital stock of ¥300 million or less, or an operating staff of 300 or fewer employ-
ees. (Exceptions to these capital stock and staff restrictions include wholesalers: ¥100 million, 100 employees; retailers: ¥50 million, 50 employees; and
service industry companies: ¥50 million, 100 employees.)
166
SMBCLoans (Nonconsolidated)SMFG 2013
Consumer Loans Outstanding
March 31
Consumer loans ..............................................................................................
Housing loans ..............................................................................................
Residential purpose .................................................................................
Others ..........................................................................................................
2013
¥14,955,844
14,086,232
11,190,267
869,612
2012
¥15,206,143
14,336,810
11,196,588
869,332
Note: Housing loans include general-purpose loans used for housing purposes as well as housing loans and apartment house acquisition loans.
Millions of yen
Breakdown of Reserve for Possible Loan Losses
Year ended March 31, 2013
General reserve for possible loan losses..................
Specific reserve for possible loan losses .................
For nonresident loans ...........................................
Loan loss reserve for specific overseas countries ...
Total ..........................................................................
Amount of direct reduction .......................................
Balance at beginning
of the fiscal year
¥446,842
[(7,308)]
252,578
[(3,071)]
64,826
[(3,071)]
173
¥699,595
[(10,379)]
¥336,938
[(2,038)]
* Transfer from reserves by reversal or origination method
Note: Figures in brackets [ ] indicate foreign exchange translation adjustments.
Year ended March 31, 2012
General reserve for possible loan losses..................
Specific reserve for possible loan losses .................
For nonresident loans ...........................................
Loan loss reserve for specific overseas countries ...
Total ..........................................................................
Amount of direct reduction .......................................
Balance at beginning
of the fiscal year
¥482,457
[857]
227,560
[374]
44,227
[374]
272
¥710,290
[1,232]
¥495,941
[264]
* Transfer from reserves by reversal or origination method
Note: Figures in brackets [ ] indicate foreign exchange translation adjustments.
Millions of yen
Increase during
the fiscal year
¥375,161
Decrease during the fiscal year
Others
Objectives
¥446,842*
¥ —
Balance at end
of the fiscal year
¥375,161
241,426
56,254
196,324*
241,426
65,499
10,543
54,282*
65,499
5
¥616,593
—
¥56,254
173*
¥643,340
5
¥616,593
¥356,056
Millions of yen
Increase during
the fiscal year
¥439,534
Decrease during the fiscal year
Others
Objectives
¥482,457*
¥ —
Balance at end
of the fiscal year
¥439,534
249,507
37,250
190,310*
249,507
61,755
4,880
39,346*
61,755
173
¥689,215
—
¥37,250
272*
¥673,039
173
¥689,215
¥334,900
Write-Off of Loans
Year ended March 31
Write-off of loans .............................................................................................
Note: Write-off of loans include amount of direct reduction.
2013
¥40,258
Millions of yen
2012
¥15,797
Specific Overseas Loans
March 31
Cyprus .............................................................................................................
Argentina .........................................................................................................
Ukraine ............................................................................................................
Iceland .............................................................................................................
Pakistan ...........................................................................................................
Total .................................................................................................................
Ratio of the total amounts to total assets .......................................................
Number of countries ........................................................................................
2013
¥67
4
—
—
—
¥72
0.00%
2
Millions of yen
2012
¥ —
6
902
663
72
¥1,645
0.00%
4
167
SMBCLoans (Nonconsolidated)SMFG 2013 Risk-Monitored Loans
March 31
Bankrupt loans ................................................................................................
Non-accrual loans ...........................................................................................
Past due loans (3 months or more) .................................................................
Restructured loans ..........................................................................................
Total .................................................................................................................
Amount of direct reduction ..............................................................................
Notes: Definition of risk-monitored loan categories
2013
¥ 44,949
760,701
9,004
247,634
¥1,062,290
¥ 321,197
Millions of yen
2012
¥ 57,503
816,705
10,531
258,312
¥1,143,053
¥ 295,908
1. Bankrupt loans: Credits for which accrued interest is not accounted in revenue; credits extended to borrowers that are undergoing bankruptcy,
corporate reorganization and rehabilitation proceedings or debtors receiving orders of disposition by suspension of business at bill clearinghouses
2. Non-accrual loans: Credits for which accrued interest is not accounted in revenue; credits, excluding loans to bankrupt borrowers and loans with grace for
interest payment to assist in corporate reorganization or to support business
3. Past due loans (3 months or more): Loans with payment of principal or interest in arrears for more than 3 months, calculated from the day following the
contractual due date, excluding borrowers in categories 1. and 2.
4. Restructured loans: Loans to borrowers in severe financial condition given certain favorable terms and conditions to assist in corporate rehabilitation or to
support business, excluding borrowers in categories 1. through 3.
Problem Assets Based on the Financial Reconstruction Act
March 31
Bankrupt and quasi-bankrupt assets ..............................................................
Doubtful assets ...............................................................................................
Substandard loans ..........................................................................................
Total of problem assets ...................................................................................
Normal assets .................................................................................................
Total .................................................................................................................
Amount of direct reduction ..............................................................................
Notes: Definition of problem asset categories
2013
¥ 145,438
691,388
256,638
1,093,465
67,289,548
¥68,383,013
¥ 356,056
Millions of yen
2012
¥ 134,361
779,641
268,844
1,182,847
62,493,590
¥63,676,437
¥ 334,900
These assets are disclosed based on the provisions of Article 7 of the Financial Reconstruction Act (Act No. 132 of 1998) and classified into the 4
categories based on financial position and business performance of obligors in accordance with Article 6 of the Act. Assets in question include private place-
ment bonds, loans and bills discounted, foreign exchanges, accrued interest, and suspense payment in “other assets,” customers’ liabilities for acceptances
and guarantees, and securities lent under the loan for consumption or leasing agreements.
1. Bankrupt and quasi-bankrupt assets: Credits to borrowers undergoing bankruptcy, corporate reorganization, and rehabilitation proceedings, as well as
claims of a similar nature
2. Doubtful assets: Credits for which final collection of principal and interest in line with original agreements is highly improbable due to deterioration of
financial position and business performance, but not insolvency of the borrower
3. Substandard loans: Past due loans (3 months or more) and restructured loans, excluding 1. and 2.
4. Normal assets: Credits to borrowers with good business performance and in financial standing without identified problems and not classified into the 3
categories above
Problem Assets Based on the Financial Reconstruction Act, and Risk-Monitored Loans
Category of borrowers under
self-assessment
Problem assets based on the Financial
Reconstruction Act
Risk-monitored loans
Total loans
Other assets
Total loans
Other assets
Bankrupt Borrowers
Effectively Bankrupt Borrowers
Bankrupt and
quasi-bankrupt assets
Potentially Bankrupt Borrowers
Doubtful assets
Borrowers Requiring Caution
Substandard loans
Normal Borrowers
(Normal assets)
Bankrupt loans
Non-accrual loans
Past due loans (3 months or more)
Restructured loans
A
B
C
C
168
SMBCLoans (Nonconsolidated)SMFG 2013
Classification under Self-Assessment, Disclosure of Problem Assets, and Write-Offs/Reserves
March 31, 2013
Category of
borrowers under
self-assessment
Bankrupt Borrowers
Effectively Bankrupt
Borrowers
Potentially
Bankrupt
Borrowers
Borrowers
Requiring
Caution
Problem assets based on
the Financial Reconstruction Act
Classification under self-assessment
Classification I Classification II Classification III
Classification IV
(Billions of yen)
Reserve for possible
loan losses
Reserve ratio
Bankrupt and
quasi-bankrupt assets (1)
Portion of claims secured by
collateral or guarantees, etc. (5)
Fully reserved
¥145.5
¥130.5
¥15.0
Direct
write-offs
(Note 1)
¥24.1
(Note 2)
100%
(Note 3)
Doubtful assets (2)
Portion of claims secured by
collateral or guarantees, etc. (6)
¥691.4
¥425.1
Necessary
amount
reserved
¥266.3
Substandard loans (3)
¥256.6
(Claims to substandard borrowers)
Normal Borrowers
Normal assets
¥67,289.5
NPL ratio (A) / (4)
1.60%
(Note 5)
Total
(4)
¥68,383.0
(A) = (1) + (2) + (3)
¥1,093.5
Portion of substandard loans
secured by collateral or
guarantees, etc. (7)
¥130.3
Claims to borrowers requiring
caution, excluding claims to
substandard borrowers
Claims to normal
borrowers
Loan loss reserve for specific overseas countries
Total reserve for possible loan losses
(B) Specific reserve + General reserve
for substandard loans
Portion secured by collateral or
guarantees, etc.
(C) = ( 5 ) + (6 ) + (7) ¥685.9
Unsecured portion
(D) = (A ) – (C)
Specific
reserve
General
reserve
¥217.3
(Note 2)
81.59%
(Note 3)
General reserve
for substandard
loans ¥85.6
¥375.2
¥0.0
¥616.6
¥327.0
¥407.6
24.44%
(Note 3)
70.03%
(Note 3)
6.47%
[16.17%]
(Note 4)
0.18%
(Note 4)
Reserve ratio
(B) / (D)
80.23%
(Note 6)
Coverage ratio { ( B) + (C) } / (A)
92.63%
Notes: 1. Includes amount of direct reduction totaling ¥356.0 billion.
2. Includes reserves for assets that are not subject to disclosure under the Financial Reconstruction Act. (Bankrupt/Effectively Bankrupt Borrowers: ¥9.2
billion; Potentially Bankrupt Borrowers: ¥11.3 billion)
3. Reserve ratios for claims on Bankrupt/Effectively Bankrupt Borrowers, Potentially Bankrupt Borrowers, Substandard Borrowers, and Borrowers Requiring
Caution: The proportion of each category’s total unsecured claims covered by reserve for possible loan losses.
4. Reserve ratios for claims on Normal Borrowers and Borrowers Requiring Caution (excluding claims to Substandard Borrowers): The proportion of each
category’s total claims covered by reserve for possible loan losses. The reserve ratio for unsecured claims on Borrowers Requiring Caution (excluding
claims to Substandard Borrowers) is shown in brackets.
5. Ratio of problem assets to total assets subject to the Financial Reconstruction Act
6. Reserve ratio = (Specific reserve + General reserve for substandard loans) / (Bankrupt and quasi-bankrupt assets + Doubtful assets + Substandard loans –
Portion secured by collateral or guarantees, etc.)
Off-Balancing Problem Assets
Bankrupt and quasi-bankrupt assets ...
Doubtful assets ....................................
Total ......................................................
March 31, 2011
➀
¥138.5
684.8
¥823.3
Fiscal 2011
New occurrences Off-balanced
¥ (75.3)
(244.4)
¥(319.7)
¥ 71.2
339.2
¥410.4
March 31, 2012
➁
¥134.4
779.6
¥914.0
Fiscal 2012
New occurrences Off-balanced
¥ (18.5)
(378.6)
¥(397.1)
¥ 29.6
290.4
¥320.0
March 31, 2013
➂
¥145.5
691.4
¥836.9
Billions of yen
Increase/
Decrease
➂ – ➁
¥ 11.1
Bankrupt and quasi-bankrupt assets ...
(88.2)
Doubtful assets ....................................
¥(77.1)
Total ......................................................
Notes: 1. The off-balancing (also known as “final disposal”) of problem assets refers to the removal of such assets from the bank’s balance sheet by way of sale,
Increase/
Decrease
➁ – ➀
¥ (4.1)
94.8
¥90.7
direct write-off or other means.
2. The figures shown in the above table under “new occurrences” and “off-balanced” are simple additions of the figures for the first and second halves of
the 2 periods reviewed. Amounts of ¥62.9 billion for fiscal 2011 and ¥53.5 billion in fiscal 2012, recognized as “new occurrences” in the first halves of the
terms, were included in the amounts off-balanced in the respective second halves.
169
SMBCLoans (Nonconsolidated)SMFG 2013
Securities (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Balance of Securities
Year-End Balance
March 31
Domestic operations:
Millions of yen
2013
2012
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Subtotal .......................................................................................................
International operations:
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
¥26,231,692
159,088
2,471,459
3,900,774
893,622
/
/
¥33,656,638
¥ —
—
—
—
7,690,361
5,762,889
1,927,471
¥ 7,690,361
¥41,347,000
¥28,472,939
229,175
2,768,322
3,472,964
317,541
/
/
¥35,260,942
¥ —
—
—
—
7,180,192
5,578,280
1,601,912
¥ 7,180,192
¥42,441,134
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2013
2012
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Subtotal .......................................................................................................
International operations:
¥26,528,645
177,017
2,665,321
3,220,358
460,192
/
/
¥33,051,536
¥26,162,160
254,553
2,778,522
3,233,532
345,606
/
/
¥32,774,374
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
Note: The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly
¥ —
—
—
—
6,209,456
4,483,159
1,726,296
¥ 6,209,456
¥39,260,992
¥ —
—
—
—
4,639,440
3,090,800
1,548,639
¥ 4,639,440
¥37,413,814
current method.
170
SMBCSMFG 2013 Balance of Securities Held, Classified by Maturity
March 31
One year or less
Millions of yen
2013
2012
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
¥ 8,105,692
45,360
278,473
630,608
616,160
—
¥ 7,294,077
6,038
278,046
386,681
365,192
—
One — three years
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Three — five years
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Five — seven years
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Seven — 10 years
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
More than 10 years
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
No designated term
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Total
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
7,782,528
112,997
776,276
3,223,473
3,176,836
—
8,259,369
—
891,292
1,644,565
1,481,341
—
1,741,444
196
239,352
186,337
180,582
526
342,657
488
222,512
67,001
—
756
—
45
63,551
460,749
307,968
146,966
—
—
—
3,900,774
2,371,248
—
1,779,221
¥26,231,692
159,088
2,471,459
3,900,774
8,583,984
5,762,889
1,927,471
9,857,152
102,630
944,689
2,972,025
2,930,657
—
9,038,326
116,010
942,888
1,752,052
1,707,708
—
693,803
3,972
365,879
73,462
71,568
—
1,589,578
475
171,289
234,630
199,935
30
—
47
65,528
471,315
303,219
158,091
—
—
—
3,472,964
1,607,566
—
1,443,789
¥28,472,939
229,175
2,768,322
3,472,964
7,497,734
5,578,280
1,601,912
171
SMBCSecurities (Nonconsolidated)SMFG 2013 Ratios (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Income Ratio
Percentage
Year ended March 31
Ordinary profit to total assets ..........................................................................
Ordinary profit to stockholders’ equity ............................................................
Net income to total assets ..............................................................................
Net income to stockholders’ equity ................................................................
Notes: 1. Ordinary profit (net income) to total assets = Ordinary profit (net income) / Average balance of total assets excluding customers’ liabilities for acceptances
10.94
0.50
10.07
12.57
0.40
8.64
2013
0.54%
2012
0.59%
and guarantees ✕ 100
2. Ordinary profit (net income) to stockholders’ equity = (Ordinary profit (net income) – Preferred dividends) / {(Net assets at the beginning of the fiscal year
– Number of shares of preferred stock outstanding at the beginning of the fiscal year ✕ Issue price) + (Net assets at the end of the fiscal year – Number of
shares of preferred stock outstanding at the end of the fiscal year ✕ Issue price)} divided by 2 ✕ 100
Yield/Interest Rate
Year ended March 31
Domestic operations:
Percentage
2013
2012
Interest-earning assets (A) ...........................................................................
Interest-bearing liabilities (B) .......................................................................
(A) – (B) ........................................................................................................
International operations:
Interest-earning assets (A) ...........................................................................
Interest-bearing liabilities (B) .......................................................................
(A) – (B) ........................................................................................................
Total:
Interest-earning assets (A) ...........................................................................
Interest-bearing liabilities (B) .......................................................................
(A) – (B) ........................................................................................................
1.10%
0.90
0.20
1.48%
1.31
0.17
1.21%
1.00
0.21
1.15%
0.90
0.25
1.53%
1.43
0.10
1.23%
1.00
0.23
Loan-Deposit Ratio
March 31
Domestic operations:
Millions of yen
2013
2012
Loans and bills discounted (A) ....................................................................
Deposits (B) .................................................................................................
Loan-deposit ratio (%)
(A) / (B) .....................................................................................................
Ratio by average balance for the fiscal year ............................................
International operations:
Loans and bills discounted (A) ....................................................................
Deposits (B) .................................................................................................
Loan-deposit ratio (%)
(A) / (B) .....................................................................................................
Ratio by average balance for the fiscal year ............................................
Total:
Loans and bills discounted (A) ....................................................................
Deposits (B) .................................................................................................
Loan-deposit ratio (%)
(A) / (B) .....................................................................................................
Ratio by average balance for the fiscal year ............................................
Note: Deposits include negotiable certificates of deposit.
¥45,191,878
76,069,778
59.40%
60.81
¥14,578,885
15,858,558
91.93%
98.78
¥59,770,763
91,928,337
65.01%
66.88
¥45,356,393
73,289,979
61.88%
64.52
¥11,055,098
11,102,855
99.56%
90.71
¥56,411,492
84,392,835
66.84%
68.11
172
SMBCSMFG 2013
Securities-Deposit Ratio
March 31
Domestic operations:
Millions of yen
2013
2012
Securities (A) ................................................................................................
Deposits (B) .................................................................................................
Securities-deposit ratio (%)
(A) / (B) .....................................................................................................
Ratio by average balance for the fiscal year ............................................
International operations:
Securities (A) ................................................................................................
Deposits (B) .................................................................................................
Securities-deposit ratio (%)
(A) / (B) .....................................................................................................
Ratio by average balance for the fiscal year ............................................
Total:
Securities (A) ................................................................................................
Deposits (B) .................................................................................................
Securities-deposit ratio (%)
(A) / (B) .....................................................................................................
Ratio by average balance for the fiscal year ............................................
Note: Deposits include negotiable certificates of deposit.
¥33,656,638
76,069,778
44.24%
45.22
¥ 7,690,361
15,858,558
48.49%
44.70
¥41,347,000
91,928,337
44.97%
45.14
¥35,260,942
73,289,979
48.11%
45.64
¥ 7,180,192
11,102,855
64.66%
40.75
¥42,441,134
84,392,835
50.28%
44.97
173
SMBCRatios (Nonconsolidated)SMFG 2013 Capital (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Changes in Number of Shares Issued and Capital Stock
September 10, 2009*1 ..............................
September 29, 2009*2 ..............................
November 26, 2009*3 ...............................
February 16, 2010*4 ..................................
Number of shares issued
Changes
20,672,514
8,211,569
992,453
20,016,015
Balances
77,098,364
85,309,933
86,302,386
106,318,401
Millions of yen
Capital stock
Capital reserve
Changes
¥427,972
170,000
23,999
484,037
Balances
¥1,092,959
1,262,959
1,286,959
1,770,996
Changes
¥427,972
170,000
23,999
484,037
Balances
¥1,093,006
1,263,006
1,287,006
1,771,043
Remarks:
*1 Allotment to third parties: Common stock: 20,672,514 shares
Issue price: ¥41,405 Capitalization: ¥20,702.5
*2 Allotment to third parties: Common stock: 8,211,569 shares
Issue price: ¥41,405 Capitalization: ¥20,702.5
*3 Allotment to third parties: Common stock: 992,453 shares
*4 Allotment to third parties: Common stock: 20,016,015 shares
Issue price: ¥48,365 Capitalization: ¥24,182.5
Issue price: ¥48,365 Capitalization: ¥24,182.5
Number of Shares Issued
March 31, 2013
Common stock ...................................................................................................................................................
Preferred stock (1st series Type 6) .....................................................................................................................
Total ....................................................................................................................................................................
Number of shares issued
106,248,400
70,001
106,318,401
Note: The shares above are not listed on any stock exchange.
Principal Shareholders
a. Common Stock
March 31, 2013
Sumitomo Mitsui Financial Group, Inc. ..........................................................
Number of shares
106,248,400
b. Preferred Stock (1st series Type 6)
March 31, 2013
Sumitomo Mitsui Banking Corporation ...........................................................
Number of shares
70,001
Percentage of
shares outstanding
100.00%
Percentage of
shares outstanding
100.00%
174
SMBCSMFG 2013 Others (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Employees
March 31
Number of employees .....................................................................................
Average age (years–months) ...........................................................................
Average length of employment (years–months) ..............................................
Average annual salary (thousands of yen) .......................................................
Notes: 1. Temporary and part-time staff are excluded from the above calculations but includes overseas local staff. Executive officers who do not concurrently serve
2013
22,569
36-1
12-10
¥7,991
2012
22,686
35-8
12-5
¥7,927
as Directors are excluded from “Number of employees.”
2. “Average annual salary” includes bonus, overtime pay and other fringe benefits.
3. Overseas local staff are excluded from the above calculations other than “Number of employees.”
Number of Offices
March 31
Domestic network:
Main offices and branches ..........................................................................
Subbranches ...............................................................................................
Agency .........................................................................................................
Overseas network:
2013
505
151
4
2012
498
156
4
Branches .....................................................................................................
Subbranches ...............................................................................................
Representative offices .................................................................................
Total .................................................................................................................
Note: “Main offices and branches” includes the International Business Operations Dept. (2013, 2 branches; 2012, 2 branches), specialized deposit account branches
16
12
8
696
15
10
10
693
(2013, 46 branches; 2012, 41 branches) and ATM administration branches (2013, 17 branches; 2012, 17 branches).
Number of Automated Service Centers
March 31
Automated service centers..............................................................................
2013
40,416
2012
37,245
Domestic Exchange Transactions
Year ended March 31
Exchange for remittance:
Destined for various parts of the country:
Millions of yen
2013
2012
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
365,674
¥ 580,395,381
Received from various parts of the country:
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
297,836
¥ 960,396,071
Collection:
Destined for various parts of the country:
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
2,496
¥ 6,311,422
Received from various parts of the country:
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
Total .................................................................................................................
944
¥ 2,020,653
¥1,549,123,529
337,487
¥ 585,870,686
297,887
¥ 964,793,291
2,540
¥ 6,357,270
964
¥ 2,249,924
¥1,559,271,172
175
SMBCSMFG 2013
Foreign Exchange Transactions
Year ended March 31
Outward exchanges:
Foreign bills sold..........................................................................................
Foreign bills bought .....................................................................................
Incoming exchanges:
Foreign bills payable ....................................................................................
Foreign bills receivable ................................................................................
Total .................................................................................................................
Note: The figures above include foreign exchange transactions by overseas branches.
Millions of U.S. dollars
2013
$2,332,030
1,984,878
$ 973,735
50,080
$5,340,724
Breakdown of Collateral for Customers’ Liabilities for Acceptances and Guarantees
Millions of yen
March 31
Securities .........................................................................................................
Commercial claims ..........................................................................................
Commercial goods ..........................................................................................
Real estate .......................................................................................................
Others ..............................................................................................................
Subtotal ...........................................................................................................
Guaranteed ......................................................................................................
Unsecured .......................................................................................................
Total .................................................................................................................
2013
¥ 5,295
28,550
—
46,292
10,420
¥ 90,558
488,105
4,812,980
¥5,391,645
2012
$2,432,602
1,991,657
$1,030,498
40,585
$5,495,343
2012
¥ 3,523
29,031
—
47,134
25,836
¥ 105,525
467,610
3,726,441
¥4,299,577
176
SMBCOthers (Nonconsolidated)SMFG 2013 Trust Assets and Liabilities (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Statements of Trust Assets and Liabilities
March 31
Assets:
Loans and bills discounted ..........................................................................
Loans on deeds .......................................................................................
Securities .....................................................................................................
Japanese government bonds ..................................................................
Corporate bonds......................................................................................
Japanese stocks ......................................................................................
Foreign securities.....................................................................................
Other securities ........................................................................................
Trust beneficiary right ..................................................................................
Monetary claims ..........................................................................................
Monetary claims for housing loans ..........................................................
Other monetary claims ............................................................................
Tangible fixed assets ...................................................................................
Equipment................................................................................................
Other claims ................................................................................................
Call loans .....................................................................................................
Due from banking account ..........................................................................
Cash and due from banks ...........................................................................
Deposits with banks ................................................................................
Others ..........................................................................................................
Others ......................................................................................................
Total assets ..................................................................................................
Liabilities:
Designated money trusts.............................................................................
Specified money trusts ................................................................................
Money in trusts other than money trusts .....................................................
Monetary claims trusts ................................................................................
Equipment trusts .........................................................................................
Composite trusts .........................................................................................
Total liabilities ..............................................................................................
2013
¥ 131,913
131,913
1,076,225
307,252
681,320
4,568
83,084
—
22,981
568,056
12,328
555,727
8
8
801
190,326
643,350
59,427
59,427
—
—
¥2,693,092
¥1,002,159
1,033,657
100,000
554,201
19
3,054
¥2,693,092
Notes: 1. Amounts less than 1 million yen have been omitted.
2. SMBC has no co-operative trusts under any other trust bank’s administration as of the year-end.
3. SMBC does not deal with any trusts with principal indemnification.
4. Excludes trusts whose monetary values are difficult to calculate.
Millions of yen
2012
¥ 235,829
235,829
424,478
324,015
9,256
6,150
84,805
250
9,991
621,656
17,323
604,333
7
7
1,529
100,732
443,723
53,904
53,904
0
0
¥1,891,853
¥ 821,292
228,033
220,605
617,858
24
4,039
¥1,891,853
177
SMBCSMFG 2013
Capital Ratio Information (Consolidated)
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
The consolidated capital ratio is calculated using the method stipulated in “Standards for Bank Holding Company to Examine the Adequacy of
Its Capital Based on Assets, Etc. Held by It and Its Subsidiaries Pursuant to Article 52-25 of the Banking Act” (Notification No. 20 issued by
the Japanese Financial Services Agency in 2006; hereinafter referred to as “the Notification”).
In addition to the method stipulated in the Notification to calculate the consolidated capital ratio (referred to as “International Standard” in
the Notification), SMFG has adopted the Advanced Internal Ratings-Based (AIRB) approach for calculating credit risk-weighted asset amounts
and the Advanced Measurement Approach (AMA) for calculating the operational risk equivalent amount.
“Capital Ratio Information” was prepared based on the Notification, and the terms and details in the section may differ from the terms and
details in other sections of this report.
■ Scope of Consolidation
1. Consolidated Capital Ratio Calculation
• Number of consolidated subsidiaries: 323
Please refer to “Principal Subsidiaries and Affiliates” on page 244 for their names and business outline.
• Scope of consolidated subsidiaries for calculation of the consolidated capital ratio is based on the scope of consolidated subsidiaries for
preparing consolidated financial statements.
• There are no affiliates to which the proportionate consolidation method is applied.
2. Restrictions on Movement of Funds and Capital within Holding Company Group
There are no special restrictions on movement of funds and capital among SMFG and its group companies.
3. Names of companies among subsidiaries of bank-holding companies (other financial institutions), with the Basel Capital Accord
required amount, and total shortfall amount
Not applicable.
178
SMFGSMFG 2013
■ Capital Structure Information (Consolidated Capital Ratio (International Standard))
Regarding the calculation of the capital ratio, certain procedures were performed by KPMG AZSA LLC pursuant to “Treatment of Inspection
of the Capital Ratio Calculation Framework Based on Agreed-Upon Procedures” (JICPA Industry Committee Practical Guideline No. 30).
The certain procedures performed by the external auditor are not part of the audit of consolidated financial statements. The certain procedures
performed on our internal control framework for calculating the capital ratio are based on procedures agreed upon by SMFG and the external
auditor and are not a validation of appropriateness of the capital ratio itself or opinion on the internal controls related to the capital ratio
calculation.
March 31
Tier 1 capital:
Tier 2 capital:
Deductions*:
Total qualifying capital:
Risk-weighted assets:
Tier 1 risk-weighted capital ratio:
Total risk-weighted capital ratio:
Required capital:
Capital stock ....................................................................................................
Capital surplus .................................................................................................
Retained earnings ............................................................................................
Treasury stock ..................................................................................................
Cash dividends to be paid ...............................................................................
Foreign currency translation adjustments ........................................................
Stock acquisition rights ....................................................................................
Minority interests ..............................................................................................
Goodwill and others .........................................................................................
Gain on sale on securitization transactions......................................................
Amount equivalent to 50% of expected losses in excess of reserve ..............
Total Tier 1 capital (A) .......................................................................................
Unrealized gains on other securities after 55% discount.................................
Land revaluation excess after 55% discount ...................................................
General reserve for possible loan losses..........................................................
Excess of eligible reserves relative to expected losses ...................................
Subordinated debt ...........................................................................................
Total Tier 2 capital ............................................................................................
Tier 2 capital included as qualifying capital (B) ................................................
(C) .....................................................................................................................
(D) = (A) + (B) – (C) ............................................................................................
On-balance sheet items ...................................................................................
Off-balance sheet items ...................................................................................
Market risk ........................................................................................................
Operational risk ................................................................................................
Total risk-weighted assets (E) ...........................................................................
(A) / (E) ✕ 100 ....................................................................................................
(D) / (E) ✕ 100 ...................................................................................................
(E) ✕ 8% ...........................................................................................................
Millions of yen
2012
¥ 2,337,895
759,800
2,152,654
(236,037)
(68,230)
(141,382)
692
2,030,638
(496,434)
(38,284)
(29,052)
6,272,260
214,611
35,755
66,695
—
2,454,062
2,771,125
2,771,125
399,634
¥ 8,643,751
¥38,150,731
7,825,808
1,174,187
3,892,505
¥51,043,232
12.28%
16.93%
¥ 4,083,458
* “Deductions” refers to deductions stipulated in Article 8-1 of the Notification and includes willful holding of securities issued by other financial institutions and
securities stipulated in Clause 2.
179
SMFGCapital Ratio InformationSMFG 2013 (Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
1a+2-1c-26
1a
2
1c
26
1b
3
5
6
8+9
8
9
10
11
12
13
14
15
16
17
18
19+20+21
19
20
21
22
23
24
25
27
28
29
664,570
668,853
400,969
267,884
9,897
(29,649)
—
39,149
6,658
144,783
9,019
—
169,361
—
—
—
—
—
—
—
—
Items
Common Equity Tier 1 capital: instruments and reserves
Directly issued qualifying common share capital plus related capital surplus and retained
earnings
of which: capital and capital surplus
of which: retained earnings
of which: treasury stock
of which: cash dividends to be paid
of which: other than the above
Stock acquisition rights to common shares
Accumulated other comprehensive income and other disclosed reserves
Adjusted minority interests, etc. (amount allowed to be included in group Common Equity Tier 1)
Total of items included in Common Equity Tier 1 capital: instruments and reserves subject to
transitional arrangements
of which: minority interests and other items corresponding to common share capital issued
by consolidated subsidiaries (amount allowed to be included in group Common
Equity Tier 1)
Common Equity Tier 1 capital: instruments and reserves
Common Equity Tier 1 capital: regulatory adjustments
Total intangible assets (excluding those relating to mortgage servicing rights)
of which: goodwill (including those equivalent)
of which: other intangible assets other than goodwill and mortgage servicing rights
Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability)
Net deferred losses on hedges
Shortfall of eligible provisions to expected losses
Gain on sale on securitization transactions
Gains and losses due to changes in own credit risk on fair valued liabilities
Prepaid pension cost
Investments in own shares (excluding those reported in the Net assets section)
Reciprocal cross-holdings in common equity
Investments in the capital of banking, financial and insurance entities that are outside the
scope of regulatory consolidation (“Other Financial Institutions”), net of eligible short positions,
where the bank does not own more than 10% of the issued share capital (“Non-significant
Investment”) (amount above the 10% threshold)
Amount exceeding the 10% threshold on specified items
of which: significant investments in the common stock of Other Financial Institutions, net of
eligible short positions
of which: mortgage servicing rights
of which: deferred tax assets arising from temporary differences (net of related tax liability)
Amount exceeding the 15% threshold on specified items
of which: significant investments in the common stock of Other Financial Institutions, net of
eligible short positions
of which: mortgage servicing rights
of which: deferred tax assets arising from temporary differences (net of related tax liability)
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1
and Tier 2 to cover deductions
Common Equity Tier 1 capital: regulatory adjustments
Common Equity Tier 1 capital (CET1)
Common Equity Tier 1 capital (CET1) ((A)-(B))
(B)
(C)
180
5,585,856
3,096,526
2,811,474
227,373
94,771
—
1,140
—
139,300
129,556
129,556
(A)
5,855,852
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5,855,852
SMFGCapital Ratio InformationSMFG 2013
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
127,606
1,463,271
1,462,821
450
(97,448)
(97,448)
1,493,429
—
—
—
—
520,261
481,111
39,149
—
520,261
973,168
—
—
1,589
157,149
Items
Additional Tier 1 capital: instruments
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as equity under applicable accounting standards and the breakdown
Stock acquisition rights to Additional Tier 1 instruments
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as liabilities under applicable accounting standards
Qualifying Additional Tier 1 instruments plus related capital surplus issued by special purpose
vehicles and other equivalent entities
Adjusted minority interests, etc. (amount allowed to be included in group Additional Tier 1)
Eligible Tier 1 capital instruments subject to transitional arrangements included in Additional
Tier 1 capital: instruments
of which: instrument issued by bank holding companies and their special purpose vehicles
of which: instruments issued by subsidiaries (excluding bank holding companies’ special
purpose vehicles)
Total of items included in Additional Tier 1 capital: items subject to transitional arrangements
of which: foreign currency translation adjustments
Additional Tier 1 capital: instruments
Additional Tier 1 capital: regulatory adjustments
Investments in own Additional Tier 1 instruments
Reciprocal cross-holdings in Additional Tier 1 instruments
Non-significant Investments in the Additional Tier 1 capital of Other Financial Institutions, net of
eligible short positions (amount above 10% threshold)
Significant investments in the Additional Tier 1 capital of Other Financial Institutions (net of
eligible short positions)
Total of items included in Additional Tier 1 capital: regulatory adjustments subject to transitional
arrangements
(D)
of which: goodwill and others
of which: gain on sale on securitization transactions
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover
deductions
Additional Tier 1 capital: regulatory adjustments
Additional Tier 1 capital (AT1)
Additional Tier 1 capital ((D)-(E))
Tier 1 capital (T1 = CET1 + AT1)
Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))
Tier 2 capital: instruments and provisions
Directly issued qualifying Tier 2 instruments plus related capital surplus of which: classified as
equity under applicable accounting standards and its breakdown
Stock acquisition rights to Tier 2 instruments
Directly issued qualifying Tier 2 instruments plus related capital surplus of which: classified as
liabilities under applicable accounting standards
Tier 2 instruments plus related capital surplus issued by special purpose vehicles and other
equivalent entities
Adjusted minority interests, etc. (amount allowed to be included in group Tier 2)
Eligible Tier 2 capital instruments subject to transitional arrangements included in Tier 2:
instruments and provisions
of which: instruments issued by bank holding companies and their special purpose vehicles
of which: instruments issued by subsidiaries (excluding bank holding companies’ special
purpose vehicles)
Total of general reserve for possible loan losses and eligible provisions included in Tier 2
of which: general reserve for possible loan losses
of which: eligible provisions
Total of items included in Tier 2 capital: instruments and provisions subject to transitional
arrangements
of which: unrealized gains on other securities after 55% discount
of which: land revaluation excess after 55% discount
Tier 2 capital: instruments and provisions
(H)
(E)
(F)
(G)
6,829,021
—
—
—
—
28,909
1,830,854
—
1,830,854
67,313
41,449
25,864
506,575
471,203
35,372
2,433,653
31a
31b
32
30
34-35
33+35
33
35
36
37
38
39
40
42
43
44
45
46
48-49
47+49
47
49
50
50a
50b
51
181
SMFGCapital Ratio InformationSMFG 2013
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
—
—
73,250
125,000
(I)
(J)
(K)
76,663
76,663
76,663
2,356,989
9,186,010
363,360
(76,474)
284,262
88,191
45,877
(L)
62,426,124
9.38%
10.93%
14.71%
554,215
197,398
—
506,519
41,449
70,845
25,864
291,538
1,463,271
162,585
1,830,854
203,428
(Millions of yen)
Year ended March 31, 2013
4,994,089
52
53
54
55
57
58
59
60
61
62
63
72
73
74
75
76
77
78
79
82
83
84
85
Items
Tier 2 capital: regulatory adjustments
Investments in own Tier 2 instruments
Reciprocal cross-holdings in Tier 2 instruments
Non-significant Investments in the Tier 2 capital of Other Financial Institutions, net of eligible
short positions (amount above the 10% threshold)
Significant investments in the Tier 2 capital of Other Financial Institutions (net of eligible short
positions)
Total of items included in Tier 2 capital: regulatory adjustments subject to transitional
arrangements
of which: Tier 2 and deductions under Basel 2
Tier 2 capital: regulatory adjustments
Tier 2 capital (T2)
Tier 2 capital (T2) ((H)-(I))
Total capital (TC = T1 + T2)
Total capital (TC = T1 + T2) ((G) + (J))
Risk weighted assets
Total of items included in risk weighted assets subject to transitional arrangements
of which: intangible assets other than mortgage servicing rights
of which: Non-significant Investments in the capital of Other Financial Institutions, net of
eligible short positions (amount above the 10% threshold)
of which: significant investments in Additional Tier 1 capital of Other Financial Institutions
(net of eligible short positions)
of which: significant investments in Tier 2 capital of Other Financial Institutions (net of
eligible short positions)
Risk weighted assets
Capital ratio (consolidated)
Common Equity Tier 1 risk-weighted capital ratio (consolidated) ((C)/(L))
Tier 1 risk-weighted capital ratio (consolidated) ((G)/(L))
Total risk-weighted capital ratio (consolidated) ((K)/(L))
Regulatory adjustments
Non-significant Investments in the capital of Other Financial Institutions that are below the
thresholds for deduction (before risk weighting)
Significant investments in the common stock of Other Financial Institutions that are below the
thresholds for deduction (before risk weighting)
Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)
Deferred tax assets arising from temporary differences that are below the thresholds for
deduction (before risk weighting)
Provisions included in Tier 2 capital: instruments and provisions
Provisions (general reserve for possible loan losses)
Cap on inclusion of provisions (general reserve for possible loan losses)
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal
ratings-based approach (prior to application of cap)
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
Capital instruments subject to transitional arrangements
Current cap on Additional Tier 1 instruments subject to transitional arrangements
Amount excluded from Additional Tier 1 due to cap (excess over cap after redemptions and
maturities)
Current cap on Tier 2 instruments subject to transitional arrangements
Amount excluded from Tier 2 due to cap (excess over cap after redemptions and maturities)
Items
Required capital ((L) ✕ 8%)
182
SMFGCapital Ratio InformationSMFG 2013
■ Capital Requirements
March 31
Capital requirements for credit risk:
Billions of yen
2013
2012
Internal ratings-based approach ............................................................................................................
Corporate exposures: ........................................................................................................................
Corporate exposures (excluding specialized lending) ....................................................................
Sovereign exposures ......................................................................................................................
Bank exposures ..............................................................................................................................
Specialized lending .........................................................................................................................
Retail exposures: ................................................................................................................................
Residential mortgage exposures ....................................................................................................
Qualifying revolving retail exposures ..............................................................................................
Other retail exposures .....................................................................................................................
Equity exposures: ...............................................................................................................................
Grandfathered equity exposures ....................................................................................................
PD/LGD approach ..........................................................................................................................
Market-based approach .................................................................................................................
Simple risk weight method..........................................................................................................
Internal models method ..............................................................................................................
Credit risk-weighted assets under Article 145 of the Notification ......................................................
Securitization exposures ....................................................................................................................
Other exposures .................................................................................................................................
Standardized approach ..........................................................................................................................
Amount corresponding to CVA risk ........................................................................................................
CCP-related exposures ..........................................................................................................................
Total capital requirements for credit risk ................................................................................................
Capital requirements for market risk:
Standardized measurement method ......................................................................................................
Interest rate risk ..................................................................................................................................
Equity position risk .............................................................................................................................
Foreign exchange risk.........................................................................................................................
Commodities risk ................................................................................................................................
Options ...............................................................................................................................................
Internal models method ..........................................................................................................................
Securitization exposures ........................................................................................................................
Total capital requirements for market risk ..............................................................................................
Capital requirements for operational risk:
¥5,361.9
3,278.6
2,768.3
35.3
159.7
315.2
920.4
497.7
117.9
304.8
407.8
184.3
81.6
141.9
64.3
77.6
273.8
106.1
375.2
422.6
192.7
8.7
5,985.9
54.6
34.6
7.5
1.0
10.8
0.8
107.9
—
162.5
¥4,573.4
2,780.8
2,358.5
46.3
104.9
271.1
876.2
432.9
125.8
317.4
333.2
168.7
76.1
88.4
53.9
34.5
140.0
137.2
306.0
569.2
—
—
5,142.6
41.9
30.9
7.5
0.5
1.6
1.4
52.0
0.5
94.5
Advanced measurement approach ........................................................................................................
Basic indicator approach ........................................................................................................................
Total capital requirements for operational risk........................................................................................
Total amount of capital requirements .......................................................................................................
204.5
56.0
260.5
¥6,408.9
251.5
59.9
311.4
¥5,548.4
Notes: 1. Capital requirements for credit risk are capital equivalents to “credit risk-weighted assets ✕ 8%” under the standardized approach and “credit risk-weighted assets ✕ 8% +
expected loss amount” under the Internal-Ratings Based (IRB) approach. Regarding exposures to be deducted from capital in the year ended March 31, 2012, the deduction
amount is added to the amount of required capital.
2. Portfolio classification is after CRM.
3. “Securitization exposures” includes such exposures based on the standardized approach.
4. “Other exposures” includes estimated lease residual values, purchased receivables (including exposures to qualified corporate enterprises and others), long settlement
transactions and other assets.
■ Internal Ratings-Based (IRB) Approach
1. Scope
SMFG and the following consolidated subsidiaries have adopted the Advanced Internal Ratings-Based (AIRB) approach for exposures as of
March 31, 2009.
(1) Domestic Operations
Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Card Company, Limited and SMBC Guarantee Co., Ltd.
(2) Overseas Operations
Sumitomo Mitsui Banking Corporation Europe Limited, Sumitomo Mitsui Banking Corporation (China) Limited, Sumitomo Mitsui
Banking Corporation of Canada, Banco Sumitomo Mitsui Brasileiro S.A., ZAO Sumitomo Mitsui Rus Bank, PT Bank Sumitomo Mitsui
Indonesia, Sumitomo Mitsui Banking Corporation Malaysia Berhad, SMBC Leasing and Finance, Inc., SMBC Capital Markets, Inc.,
SMBC Nikko Capital Markets Limited, SMBC Derivative Products Limited and SMBC Capital Markets (Asia) Limited
THE MINATO BANK, LTD., Kansai Urban Banking Corporation, SMBC Finance Service Co., Ltd. and Sumitomo Mitsui Finance and
Leasing Co., Ltd. have adopted the Foundation Internal Ratings-Based (FIRB) approach.
Note: Directly controlled SPCs and limited partnerships for investment of consolidated subsidiaries using the AIRB approach have also adopted the AIRB approach. Further, the
AIRB approach is applied to equity exposures on a group basis, including equity exposures of consolidated subsidiaries applying the standardized approach.
183
SMFGCapital Ratio InformationSMFG 2013
2. Exposures by Asset Class
(1) Corporate Exposures
A. Corporate, Sovereign and Bank Exposures
(A) Rating Procedures
• “Corporate, sovereign and bank exposures” includes credits to domestic and overseas commercial/industrial (C&I) companies,
individuals for business purposes (domestic only), sovereigns, public sector entities, and financial institutions. Business loans
such as apartment construction loans, and small and medium-sized enterprises (SME) loans with standardized screening process
(hereinafter referred to as “standardized SME loans”) are, in principle, included in “retail exposures.” However, credits of more
than ¥100 million are treated as corporate exposures in accordance with the Notification.
• An obligor is assigned an obligor grade by first assigning a financial grade using a financial strength grading model and data
obtained from the obligor’s financial statements. The financial grade is then adjusted taking into account the actual state of the
obligor’s balance sheet and qualitative factors to derive the obligor grade (for details, please refer to “Credit Risk Assessment
and Quantification” on page 37). Different rating series are used for domestic and overseas obligors — J1 ~ J10 for domestic
obligors and G1 ~ G10 for overseas obligors — as shown below due to differences in actual default rate levels and portfolios’ grade
distribution. Different Probability of Default (PD) values are applied also.
• In addition to the above basic rating procedure which builds on the financial grade assigned at the beginning, in some cases, the
obligor grade is assigned based on the parent company’s credit quality or credit ratings published by external rating agencies. The
Japanese government, local authorities and other public sector entities with special basis for existence and unconventional financial
statements are assigned obligor grades based on their attributes (for example, “local municipal corporations”), as the data on these
obligors are not suitable for conventional grading models. Further, credits to individuals for business purposes, business loans and
standardized SME loans are assigned obligor grades using grading models developed specifically for these exposures.
• PDs used for calculating credit risk-weighted assets are estimated based on the default experience for each grade and taking into
account the possibility of estimation errors. In addition to internal data, external data are used to estimate and validate PDs. The
definition of default is the definition stipulated in the Notification (an event that would lead to an exposure being classified as
“substandard loans,” “doubtful assets” or “bankrupt and quasi-bankrupt assets” occurring to the obligor).
• Loss Given Defaults (LGDs) used in the calculation of credit risk-weighted assets are estimated based on historical loss experience
of credits in default, taking into account the possibility of estimation errors.
Obligor Grade
Domestic
Corporate
J1
J2
J3
J4
Overseas
Corporate
G1
G2
G3
G4
Definition
Very high certainty of debt repayment
High certainty of debt repayment
Satisfactory certainty of debt repayment
Debt repayment is likely but this could change in cases of
significant changes in economic trends or business environment
No problem with debt repayment over the short term, but not
satisfactory over the mid to long term and the situation could
change in cases of significant changes in economic trends or
business environment
Currently no problem with debt repayment, but there are unstable
business and financial factors that could lead to debt repayment
problems
Close monitoring is required due to problems in meeting loan
terms and conditions, sluggish/unstable business, or financial
problems
Borrower Category
Normal Borrowers
Borrowers Requiring Caution
G5
G6
G7
G7R Of which Substandard Borrowers
G8
G9
G10
Currently not bankrupt, but experiencing business difficulties,
making insufficient progress in restructuring, and highly likely to
go bankrupt
Though not yet legally or formally bankrupt, has serious business
difficulties and rehabilitation is unlikely; thus, effectively bankrupt
Legally or formally bankrupt
Substandard Borrowers
Potentially Bankrupt Borrowers
Effectively Bankrupt Borrowers
Bankrupt Borrowers
J5
J6
J7
J7R
J8
J9
J10
184
SMFGCapital Ratio InformationSMFG 2013
(B) Portfolio
a. Domestic Corporate, Sovereign and Bank Exposures
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
sheet assets
Off-balance
sheet assets
March 31, 2013
J1-J3 ................................... ¥22,293.4 ¥16,543.7 ¥5,749.8
J4-J6 ................................... 15,507.9 12,920.5
2,587.4
J7 (excluding J7R) ...............
135.6
1,291.3
Japanese government and
local municipal corporations .... 34,112.9 33,667.3
445.7
Others ..................................
425.1
4,808.9
Default (J7R, J8-J10) ...........
75.8
1,531.8
Total ..................................... ¥80,182.7 ¥70,763.4 ¥9,419.3
5,233.9
1,607.6
1,426.9
Weighted
average
CCF
Weighted
average
LGD
Weighted
average
PD
75.00% 0.07% 36.75%
0.76
75.00
12.58
75.00
33.08
30.45
Weighted
average
ELdefault
Weighted
average
risk weight
—% 19.39%
—
49.08
— 127.74
Total
¥4,392.9
915.8
42.3
82.0
56.8
0.4
¥5,490.2
75.00
75.00
100.00
—
0.00
1.07
100.00
—
35.56
38.62
48.27
—
—
—
47.84
—
0.04
54.35
5.40
—
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
sheet assets
Off-balance
sheet assets
March 31, 2012
J1-J3 ................................... ¥19,184.2 ¥14,359.7 ¥4,824.6
2,941.3
J4-J6 ................................... 14,778.7 11,837.4
J7 (excluding J7R) ...............
224.7
1,341.0
Japanese government and
194.1
local municipal corporations .... 35,535.5 35,341.4
421.3
4,776.4
Others ..................................
Default (J7R, J8-J10) ...........
137.0
1,302.9
Total ..................................... ¥77,701.7 ¥68,958.7 ¥8,743.0
5,197.7
1,439.9
1,565.7
Weighted
average
CCF
Weighted
average
LGD
Weighted
average
PD
75.00% 0.07% 35.28%
0.77
75.00
12.82
75.00
30.13
27.98
Weighted
average
ELdefault
Weighted
average
risk weight
—% 16.71%
—
42.64
— 118.09
Total
¥3,649.0
948.9
44.5
87.1
44.1
3.1
¥4,776.6
75.00
75.00
100.00
—
0.00
1.04
100.00
—
35.21
37.37
48.39
—
—
—
47.30
—
0.04
49.67
13.58
—
Note: “Others” includes exposures guaranteed by credit guarantee corporations, exposures to public sector entities and voluntary organizations, and exposures to obligors
not assigned obligor grades because they have yet to close their books (for example, newly established companies), as well as business loans and standardized SME
loans of more than ¥100 million.
b. Overseas Corporate, Sovereign and Bank Exposures
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
sheet assets
Off-balance
sheet assets
March 31, 2013
G1-G3 .................................. ¥30,565.9 ¥22,024.0 ¥ 8,541.8
G4-G6 ..................................
1,347.6
G7 (excluding G7R) .............
41.9
Others ..................................
72.8
Default (G7R, G8-G10) ........
7.5
Total ..................................... ¥33,040.0 ¥23,028.3 ¥10,011.7
2,104.3
169.5
113.8
86.6
756.7
127.6
40.9
79.1
Weighted
average
PD
Weighted
average
LGD
Weighted
average
CCF
75.00% 0.15% 30.65%
3.62
75.00
23.82
75.00
2.12
75.00
100.00
100.00
—
—
13.23
20.79
35.45
65.08
—
Total
¥5,238.9
191.8
31.6
22.2
1.9
¥5,486.4
Billions of yen
Exposure amount
Undrawn amount
On-balance
sheet assets
Off-balance
sheet assets
Total
March 31, 2012
G1-G3 .................................. ¥24,500.5 ¥16,397.7 ¥8,102.8
152.5
G4-G6 ..................................
44.5
G7 (excluding G7R) .............
50.5
Others ..................................
Default (G7R, G8-G10) ........
8.4
Total ..................................... ¥25,598.5 ¥17,239.8 ¥8,358.7
738.2
174.5
90.4
94.9
585.7
130.0
39.9
86.5
Weighted
average
PD
Weighted
average
LGD
Weighted
average
CCF
75.00% 0.16% 29.21%
2.51
75.00
25.63
75.00
2.81
75.00
100.00
100.00
—
—
26.58
20.84
34.79
66.36
—
Total
¥4,286.7
145.8
28.1
38.0
1.8
¥4,500.4
Weighted
average
ELdefault
Weighted
average
risk weight
—% 18.58%
34.43
—
— 112.64
— 102.07
51.35
—
60.97
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 17.13%
—
69.99
— 110.79
— 100.62
46.44
—
62.64
—
185
SMFGCapital Ratio InformationSMFG 2013 B. Specialized Lending (SL)
(A) Rating Procedures
• “Specialized lending” is sub-classified into “project finance,” “object finance,” “commodity finance,” “income-producing real
estate” (IPRE) and “high-volatility commercial real estate” (HVCRE) in accordance with the Notification. Project finance is
financing of a single project, such as a power plant or transportation infrastructure, and cash flows generated by the project are the
primary source of repayment. Object finance includes aircraft finance and ship finance, and IPRE and HVCRE include real estate
finance (a primary example is non-recourse real estate finance). There were no commodity finance exposures as of March 31, 2013.
• Each SL product is classified as either a facility assigned a PD grade and LGD grade or a facility assigned a grade based primarily
on the expected loss ratio, both using grading models and qualitative assessment. The former has the same grading structure as
that of corporate, and the latter has ten grade levels as with obligor grades but the definition of each grade differs from that of the
obligor grade which is focused on PD.
For the credit risk-weighted asset amount for the SL category, the former facility is calculated in a manner similar to corporate
exposures, while the latter facility is calculated by mapping the expected loss-based facility grades to the below five categories
(hereinafter the “slotting criteria”) of the Notification because it does not satisfy the requirements for PD application specified in
the Notification.
(B) Portfolio
a. Slotting Criteria Applicable Portion
(a) Project Finance, Object Finance and Income-Producing Real Estate (IPRE)
March 31
Strong:
2013
2012
Billions of yen
Project finance Object finance
IPRE
Project finance Object finance
IPRE
Risk
weight
Residual term less than 2.5 years .....
Residual term 2.5 years or more .......
50% ¥ 109.8
70%
767.5
Good:
Residual term less than 2.5 years .....
Residual term 2.5 years or more .......
Satisfactory ...........................................
Weak ......................................................
Default ...................................................
Total .......................................................
70%
90%
115%
250%
—
132.4
895.8
175.7
71.6
13.2
¥2,166.0
¥1.8
—
—
—
—
—
—
¥1.8
¥10.9
6.8
—
5.0
16.9
1.2
3.3
¥44.1
¥ 152.2
1,047.7
27.9
242.1
20.9
50.4
25.5
¥1,566.7
¥ —
6.8
1.3
—
—
—
—
¥8.1
¥ 9.4
11.0
—
1.3
20.7
3.0
4.7
¥50.0
(b) High-Volatility Commercial Real Estate (HVCRE)
March 31
Strong:
Risk
weight
Billions of yen
2013
2012
Residual term less than 2.5 years .....
Residual term 2.5 years or more .......
70%
95%
Good:
Residual term less than 2.5 years .....
Residual term 2.5 years or more .......
Satisfactory ...........................................
Weak ......................................................
Default ...................................................
Total .......................................................
95%
120%
140%
250%
—
¥ —
—
53.7
120.7
102.5
9.0
—
¥285.9
¥ —
—
41.1
91.8
125.0
—
—
¥257.9
186
SMFGCapital Ratio InformationSMFG 2013
b. PD/LGD Approach Applicable Portion, Other Than Slotting Criteria Applicable Portion
(a) Object Finance
Billions of yen
Exposure amount
Undrawn amount
March 31, 2013
G1-G3 ..................................
G4-G6 ..................................
G7 (excluding G7R) .............
Others ..................................
Default (G7R, G8-G10) ........
Total .....................................
Total
¥ 91.8
19.3
3.1
—
7.8
¥122.0
On-balance
sheet assets
¥ 79.0
12.5
3.1
—
7.3
¥101.9
Off-balance
sheet assets
¥12.8
6.8
—
—
0.6
¥20.1
Total
¥ 6.5
7.1
—
—
0.0
¥13.7
Weighted
average
CCF
75.00%
75.00
—
—
100.00
—
Billions of yen
Exposure amount
Undrawn amount
March 31, 2012
G1-G3 ..................................
G4-G6 ..................................
G7 (excluding G7R) .............
Others ..................................
Default (G7R, G8-G10) ........
Total .....................................
Total
¥144.8
9.1
4.2
—
4.0
¥162.1
On-balance
sheet assets
¥102.1
8.5
4.1
—
3.9
¥118.7
Off-balance
sheet assets
¥42.7
0.6
0.0
—
0.0
¥43.4
Weighted
average
CCF
75.00%
75.00
75.00
—
100.00
—
Total
¥8.1
0.1
0.1
—
0.0
¥8.2
(b) Income-Producing Real Estate (IPRE)
Billions of yen
Exposure amount
Undrawn amount
Weighted
average
LGD
Weighted
average
PD
0.49% 17.52%
3.09
27.49
—
100.00
—
23.99
12.19
—
68.18
—
Weighted
average
LGD
Weighted
average
PD
0.47% 23.73%
4.99
27.21
—
100.00
—
34.40
28.44
—
82.02
—
Total
On-balance
sheet assets
March 31, 2013
J1-J3 ................................... ¥ 466.2 ¥ 429.3
J4-J6 ...................................
793.0
J7 (excluding J7R) ...............
34.2
Others ..................................
72.2
Default (J7R, J8-J10) ...........
27.6
Total ..................................... ¥1,519.2 ¥1,356.2
893.6
36.9
76.0
46.4
Off-balance
sheet assets
¥ 37.0
100.6
2.7
3.9
18.8
¥163.0
Total
¥ —
—
—
5.0
—
¥5.0
Weighted
average
CCF
Weighted
average
LGD
Weighted
average
PD
0.05% 28.67%
1.02
12.72
10.68
— 100.00
—
—
29.19
33.52
37.28
32.79
—
—%
—
—
75.00
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
March 31, 2012
sheet assets
J1-J3 ................................... ¥ 427.1 ¥ 387.5
915.8
J4-J6 ...................................
49.3
J7 (excluding J7R) ...............
81.1
Others ..................................
Default (J7R, J8-J10) ...........
22.2
Total ..................................... ¥1,662.7 ¥1,455.8
1,056.2
67.5
82.9
29.0
Off-balance
sheet assets
¥ 39.6
140.4
18.3
1.8
6.9
¥206.9
Total
¥ —
3.6
—
1.9
—
¥5.6
Weighted
average
CCF
—%
Weighted
average
LGD
Weighted
average
PD
0.05% 28.28%
1.11
12.55
8.60
— 100.00
—
—
33.85
29.69
34.13
29.19
—
75.00
—
75.00
Weighted
average
ELdefault
Weighted
average
risk weight
—% 34.95%
—
—
—
64.07
—
75.69
67.60
—
51.35
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 37.11%
— 131.09
— 157.84
—
—
46.44
78.31
—
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 13.57%
—
53.97
— 145.16
63.23
—
6.39
32.28
—
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 12.37%
—
69.56
— 128.45
62.46
—
15.00
27.99
—
—
187
SMFGCapital Ratio InformationSMFG 2013
(2) Retail Exposures
A. Residential Mortgage Exposures
(A) Rating Procedures
• “Residential mortgage exposures” includes mortgage loans to individuals and some real estate loans in which the property consists
of both residential and commercial facilities such as a store or rental apartment units, but excludes apartment construction loans.
• Mortgage loans are rated as follows.
Mortgage loans are allocated to a portfolio segment with similar risk characteristics in terms of (a) default risk determined using
loan contract information, results of an exclusive grading model and a borrower category under self-assessment executed in
accordance with the financial inspection manual of the Japanese FSA, and (b) recovery risk at the time of default determined using
Loan To Value (LTV) calculated based on the assessment value of collateral real estate. PDs and LGDs are estimated based on the
default experience for each segment and taking into account the possibility of estimation errors.
Further, the portfolio is subdivided based on the lapse of years from the contract date, and the effectiveness of segmentation in
terms of default risk and recovery risk is validated periodically.
Internal data are used to estimate and validate PDs and LGDs. The definition of default is the definition stipulated in the
Notification.
(B) Portfolio
March 31, 2013
Mortgage loans
PD segment:
Not delinquent
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Off-balance
sheet assets
Weighted
average
PD
Weighted
average
LGD
Weighted
average
ELdefault
Weighted
average
risk weight
Use model ......................... ¥12,364.9
Others ...............................
581.3
Delinquent .............................
134.4
Default ..........................................
245.5
Total .............................................. ¥13,326.1
¥12,323.0
581.3
128.5
245.2
¥13,278.0
¥41.9
—
5.9
0.3
¥48.1
0.49%
1.14
22.79
100.00
—
38.48%
56.69
41.28
37.73
—
—%
—
—
35.98
—
28.46%
82.50
225.27
21.88
—
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Off-balance
sheet assets
Weighted
average
PD
Weighted
average
LGD
Weighted
average
ELdefault
Weighted
average
risk weight
March 31, 2012
Mortgage loans
PD segment:
Not delinquent
Use model ......................... ¥10,894.3
638.0
Others ...............................
97.1
Delinquent .............................
Default ..........................................
233.6
Total .............................................. ¥11,863.0
¥10,844.8
638.0
90.6
233.3
¥11,806.8
¥49.5
—
6.5
0.4
¥56.3
0.42%
1.05
26.61
100.00
—
39.96%
58.00
45.19
36.43
—
—%
—
—
34.93
—
27.02%
80.10
247.74
18.69
—
Notes: 1. “Others” includes loans guaranteed by employers.
2. “Delinquent” loans are past due loans and loans to obligors categorized as “Borrowers Requiring Caution” that do not satisfy the definition of default stipulated
in the Notification.
188
SMFGCapital Ratio InformationSMFG 2013
B. Qualifying Revolving Retail Exposures (QRRE)
(A) Rating Procedures
• “Qualifying revolving retail exposures” includes card loans and credit card balances.
• Card loans and credit card balances are rated as follows.
Card loans and credit card balances are allocated to a portfolio segment with similar risk characteristics determined based, for card
loans, on the credit quality of the loan guarantee company, credit limit, settlement account balance and payment history, and, for
credit card balances, on repayment history and frequency of use.
PDs and LGDs used to calculate credit risk-weighted asset amounts are estimated based on the default experience for each
segment and taking into account the possibility of estimation errors.
Further, the effectiveness of segmentation in terms of default risk and recovery risk is validated periodically.
Internal data are used to estimate and validate PDs and LGDs. The definition of default is the definition stipulated in the
Notification.
(B) Portfolio
March 31, 2013
Card loans
PD segment:
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Balance
Increase
Undrawn amount
Off-balance
sheet
assets
Total
Weighted
average
CCF
Weighted
average
PD
Weighted
average
LGD
Weighted
average
ELdefault
Weighted
average
risk weight
Not delinquent ..... ¥ 652.4 ¥ 588.7
Delinquent ............
15.5
16.0
¥ 61.4
0.5
¥ 2.3
—
¥ 198.5
3.5
Credit card balances
PD segment:
30.92% 2.40% 83.89%
14.37
77.40
23.97
—% 59.21%
— 213.85
Not delinquent .....
690.0
Delinquent ............
4.2
Default .........................
28.3
Total ............................. ¥1,926.0 ¥1,326.7
1,220.9
5.1
31.6
310.4
0.9
3.3
¥376.4
220.5
—
—
¥222.9
4,044.3
—
—
¥4,246.3
1.08
7.68
—
76.76
— 100.00
—
—
74.57
75.18
82.51
—
—
25.31
— 127.26
75.79
—
76.44
—
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Balance
Increase
Undrawn amount
Off-balance
sheet
assets
Total
Weighted
average
CCF
Weighted
average
PD
Weighted
average
LGD
Weighted
average
ELdefault
Weighted
average
risk weight
March 31, 2012
Card loans
PD segment:
Not delinquent ..... ¥ 606.4 ¥ 549.0
14.6
Delinquent ............
15.1
¥ 54.9
0.4
¥ 2.5
—
¥ 188.0
3.3
Credit card balances
PD segment:
29.22% 2.46% 84.84%
13.48
25.42
77.67
—% 60.95%
— 214.45
677.8
Not delinquent .....
4.5
Delinquent ............
Default .........................
35.3
Total ............................. ¥1,874.6 ¥1,281.1
1,208.4
5.4
39.3
327.3
0.9
4.0
¥387.6
203.4
—
—
¥205.9
3,975.9
—
—
¥4,167.2
1.19
8.23
80.92
—
— 100.00
—
—
76.46
77.44
84.09
—
—
26.87
— 110.68
75.77
—
78.03
—
Notes: 1. The on-balance sheet exposure amount is estimated by estimating the amount of increase in each transaction balance and not by multiplying the undrawn
amount by the CCF.
2. “Weighted average CCF” is “On-balance sheet exposure amount ÷ Undrawn amount” and provided for reference only. It is not used for estimating
on-balance sheet exposure amounts.
3. Past due loans of less than three months are recorded in “Delinquent.”
189
SMFGCapital Ratio InformationSMFG 2013
C. Other Retail Exposures
(A) Rating Procedures
• “Other retail exposures” includes business loans such as apartment construction loans, standardized SME loans, and consumer
loans such as My Car Loan.
• Business loans, standardized SME loans and consumer loans are rated as follows.
a. Business loans and standardized SME loans are allocated to a portfolio segment with similar risk characteristics in terms of
(a) default risk determined using loan contract information, results of exclusive grading model and borrower category under
self-assessment executed in accordance with the financial inspection manual of the Japanese FSA, and (b) recovery risk
determined based on, for standardized SME loans, obligor attributes and, for business loans, LTV. PDs and LGDs are estimated
based on the default experience for each segment and taking into account the possibility of estimation errors.
b. Rating procedures for consumer loans depends on whether the loan is collateralized. Collateralized consumer loans are allocated
to a portfolio segment using the same standards as for mortgage loans of “A. Residential Mortgage Exposures.” Uncollateralized
consumer loans are allocated to a portfolio segment based on account history. PDs and LGDs are estimated based on the default
experience for each segment and taking into account the possibility of estimation errors.
Further, the effectiveness of segmentation in terms of default risk and recovery risk is validated periodically.
Internal data are used to estimate and validate PDs and LGDs. The definition of default is the definition stipulated in the
Notification.
(B) Portfolio
March 31, 2013
Business loans
PD segment:
Not delinquent
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Off-balance
sheet assets
Weighted
average
PD
Weighted
average
LGD
Weighted
average
ELdefault
Weighted
average
risk weight
Use model .........................
Others ...............................
Delinquent .............................
¥1,324.9
346.6
272.6
¥1,307.6
345.4
270.2
Consumer loans
PD segment:
Not delinquent
Use model .........................
Others ...............................
Delinquent .............................
Default ..........................................
Total ..............................................
324.1
152.8
48.1
203.1
¥2,672.1
323.0
150.7
47.6
202.8
¥2,647.3
¥17.3
1.2
2.3
1.1
2.1
0.5
0.3
¥24.8
1.03%
0.63
25.23
53.53%
53.42
56.78
—%
—
—
48.90%
26.49
100.10
1.04
1.78
18.62
100.00
—
45.30
57.67
48.58
64.76
—
—
—
—
58.69
—
40.51
71.54
103.16
75.99
—
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Off-balance
sheet assets
Weighted
average
PD
Weighted
average
LGD
Weighted
average
ELdefault
Weighted
average
risk weight
March 31, 2012
Business loans
PD segment:
Not delinquent
Use model .........................
Others ...............................
Delinquent .............................
¥1,192.4
354.7
302.2
¥1,174.8
353.4
299.3
Consumer loans
PD segment:
Not delinquent
Use model .........................
Others ...............................
Delinquent .............................
Default ..........................................
Total ..............................................
179.3
159.2
51.9
201.8
¥2,441.5
177.8
157.6
51.6
201.7
¥2,416.3
¥17.6
1.2
2.9
1.5
1.6
0.3
0.2
¥25.2
0.97%
0.66
29.29
52.90%
56.39
59.63
—%
—
—
48.59%
26.65
99.95
1.43
2.13
19.09
100.00
—
46.37
58.62
49.23
65.41
—
—
—
—
60.91
—
51.48
76.46
106.20
56.17
—
Notes: 1. “Business loans” includes apartment construction loans and standardized SME loans.
2. “Others” includes loans guaranteed by employers.
3. “Delinquent” loans are past due loans and loans to obligors categorized as “Borrowers Requiring Caution” that do not satisfy the definition of default stipulated
in the Notification.
190
SMFGCapital Ratio InformationSMFG 2013
(3) Equity Exposures and Credit Risk-Weighted Assets under Article 145 of the Notification
A. Equity Exposures
(A) Rating Procedures
When acquiring equities subject to the PD/LGD approach, issuers are assigned obligor grades using the same rules as those of
general credits to C&I companies, sovereigns and financial institutions. The obligors are monitored (for details, please refer to page
38) and their grades are revised if necessary (credit risk-weighted asset amount is set to 1.5 times when they are not monitored
individually). In the case there is no credit transaction with the issuer or it is difficult to obtain financial information, internal
grades are assigned using ratings of external rating agencies if it is a qualifying investment. In the case it is difficult to obtain
financial information and it is not a qualifying investment, the simple risk weight method under the market-based approach is
applied.
(B) Portfolio
a. Equity Exposure Amounts
March 31
Market-based approach ............................................................................................................
Simple risk weight method ....................................................................................................
Listed equities (300%) .......................................................................................................
Unlisted equities (400%) ....................................................................................................
Internal models method .........................................................................................................
PD/LGD approach .....................................................................................................................
Grandfathered equity exposures ...............................................................................................
Total ...........................................................................................................................................
2013
¥ 447.1
219.1
118.4
100.7
228.1
743.7
2,173.6
¥3,364.5
2012
¥ 333.7
178.7
79.6
99.1
155.0
655.9
1,988.8
¥2,978.4
Notes: 1. The above exposures are “equity exposures” stipulated in the Notification and differ from “stocks” described in the consolidated financial statements.
2. “Grandfathered equity exposures” amount is calculated in accordance with Supplementary Provision 13 of the Notification.
Billions of yen
b. PD/LGD Approach
March 31
J1-J3 .......................................................
J4-J6 .......................................................
J7 (excluding J7R) ...................................
Others ......................................................
Default (J7R, J8-J10) ...............................
Total .........................................................
Exposure
amount
¥474.4
50.3
4.7
214.0
0.4
¥743.7
Billions of yen
2013
Weighted
average
PD
0.06%
0.75
8.81
0.26
100.00
—
Weighted
average
risk weight
112.59%
193.50
559.39
140.44
1125.00
—
2012
Weighted
average
PD
0.06%
0.83
8.90
0.41
100.00
—
Weighted
average
risk weight
109.93%
208.11
412.05
144.01
—
—
Exposure
amount
¥430.0
78.5
3.3
141.7
2.4
¥655.9
Notes: 1. The above exposures are “equity exposures” stipulated in the Notification to which the PD/LGD approach is applied and differ from “stocks” described in the
consolidated financial statements.
2. “Others” includes exposures to overseas corporate entities.
3. Weighted average risk weight for the current fiscal year is calculated by including the amount derived by multiplication of the expected loss by a risk weight of
1250% in the credit risk-weighted assets.
B. Credit Risk-Weighted Assets under Article 145 of the Notification
(A) Outline of Method for Calculating Credit Risk Assets
Exposures under Article 145 of the Notification include credits to funds. In the case of such exposures, in principle, each underlying
asset of the fund is assigned an obligor grade to calculate the asset’s credit risk-weighted asset amount and the amounts are totaled
to derive the credit risk-weighted asset amount of the fund. When equity exposures account for more than half of the underlying
assets of the fund, or it is difficult to directly calculate the credit risk-weighted asset amount of individual underlying assets,
the credit risk-weighted asset amount of the fund is calculated using the simple majority adjustment method, in which credit
risk-weighted assets are calculated using a risk weight of 400% (when the risk-weighted average of individual assets underlying the
portfolio is less than 400%) or a risk weight of 1250% (in other cases).
(B) Portfolio
March 31
Exposures under Article 145 of the Notification ........................................................................
2013
¥1,203.2
2012
¥574.5
Billions of yen
191
SMFGCapital Ratio InformationSMFG 2013
(4) Analysis of Actual Losses
A. Year-on-Year Comparison of Actual Losses
SMFG recorded total credit costs (the total of the general reserve, non-performing loan write-offs and gains on collection of written-off
claims) of ¥173.1 billion on a consolidated basis for fiscal year 2012, an increase of ¥51.8 billion compared to the previous fiscal year.
SMBC recorded ¥19.5 billion in total credit costs on non-consolidated basis in fiscal year 2012, a decrease of ¥39.1 billion com-
pared to the previous fiscal year. By exposure category, the credit cost for “corporate exposures” was ¥10.7 billion, a decrease of ¥46.8
billion compared to the previous year. These were mainly due to a decrease in incurrence of credit cost as a result of our individualized
efforts to assist certain borrowers to improve their business and financial conditions, as well as a reversal of provisions for reserve made
in previous years.
Total Credit Costs
Billions of yen
Fiscal 2012 (A)
Fiscal 2011 (B)
Fiscal 2010
SMFG (consolidated) total .....................................................
SMBC (consolidated) total ....................................................
SMBC (nonconsolidated) total ..............................................
Corporate exposures .........................................................
Sovereign exposures .........................................................
Bank exposures .................................................................
Residential mortgage exposures .......................................
QRRE .................................................................................
Other retail exposures .......................................................
¥173.1
70.6
19.5
10.7
(0.3)
(0.4)
0.2
0.1
9.7
¥121.3
91.7
58.6
57.5
(0.2)
(0.0)
0.2
(0.0)
10.5
¥217.3
159.8
94.3
71.9
5.4
(14.0)
0.3
(0.1)
34.0
Increase
(decrease)
(A) – (B)
¥51.8
(21.1)
(39.1)
(46.8)
(0.1)
(0.4)
0.0
0.1
(0.8)
Notes: 1. The above amounts do not include gains/losses on “equity exposures,” “exposures on capital market-driven transactions (such as bonds)” and “exposures under Article
145 of the Notification” that were recognized as gains/losses on bonds and stocks in the statements of income.
2. Exposure category amounts do not include general reserve for Normal Borrowers.
3. Bracketed fiscal year amounts indicate gains generated by the reversal of reserve, etc.
4. Credit costs for “Residential mortgage exposures” and “QRRE” guaranteed by consolidated subsidiaries are not included in the total credit costs of SMBC
(nonconsolidated).
192
SMFGCapital Ratio InformationSMFG 2013
B. Comparison of Estimated and Actual Losses
SMFG (consolidated) total ................................
SMBC (consolidated) total ...............................
SMBC (nonconsolidated) total .........................
Corporate exposures ....................................
Sovereign exposures ....................................
Bank exposures ............................................
Residential mortgage exposures ..................
QRRE ............................................................
Other retail exposures ..................................
Fiscal 2012
Fiscal 2011
Estimated loss amounts
Estimated loss amounts
Billions of yen
After deduction
of reserves
¥ —
—
245.4
164.9
11.4
5.5
2.9
(0.0)
65.6
Actual loss
amounts
¥173.1
70.6
19.5
10.7
(0.3)
(0.4)
0.2
0.1
9.7
¥ —
—
940.1
765.9
22.0
14.9
3.7
0.1
133.5
After deduction
of reserves
¥ —
—
213.9
132.2
1.8
4.7
2.9
(0.0)
77.4
Actual loss
amounts
¥121.3
91.7
58.6
57.5
(0.2)
(0.0)
0.2
(0.0)
10.5
¥ —
—
1,062.7
889.3
12.4
14.9
3.8
0.1
142.3
Fiscal 2010
Fiscal 2009
Estimated loss amounts
Estimated loss amounts
Billions of yen
SMFG (consolidated) total ................................
SMBC (consolidated) total ...............................
SMBC (nonconsolidated) total .........................
Corporate exposures ....................................
Sovereign exposures ....................................
Bank exposures ............................................
Residential mortgage exposures ..................
QRRE ............................................................
Other retail exposures ..................................
¥ —
—
1,204.3
1,021.1
7.8
30.5
4.1
0.1
140.8
After deduction
of reserves
¥ —
—
417.2
277.4
6.3
19.2
3.2
(0.0)
111.2
Actual loss
amounts
¥217.3
159.8
94.3
71.9
5.4
(14.0)
0.3
(0.1)
34.0
After deduction
of reserves
¥ —
—
354.0
210.0
4.3
34.4
3.4
0.1
107.5
Actual loss
amounts
¥473.0
419.4
254.7
216.6
3.9
3.5
0.7
0.1
61.6
¥ —
—
1,197.2
984.0
5.8
52.1
4.0
0.1
151.2
Fiscal 2008
Fiscal 2007
Estimated loss amounts
Estimated loss amounts
Billions of yen
SMFG (consolidated) total ................................
SMBC (consolidated) total ...............................
SMBC (nonconsolidated) total .........................
Corporate exposures ....................................
Sovereign exposures ....................................
Bank exposures ............................................
Residential mortgage exposures ..................
QRRE ............................................................
Other retail exposures ..................................
¥ —
—
954.2
806.7
9.0
6.1
4.0
0.1
128.3
After deduction
of reserves
¥ —
—
323.9
278.6
7.5
5.9
3.6
0.1
65.9
Actual loss
amounts
¥767.8
724.4
550.1
411.4
(0.4)
22.7
0.5
0.0
68.1
After deduction
of reserves
¥ —
—
311.4
252.6
9.6
4.9
4.1
0.1
53.1
Actual loss
amounts
¥248.6
221.6
147.8
143.2
0.4
0.0
0.1
0.0
59.8
¥ —
—
887.7
778.6
11.2
5.1
4.6
0.1
88.2
Notes: 1. Amounts on consumer loans guaranteed by consolidated subsidiaries or affiliates as well as on “equity exposures” and “exposures under Article 145 of the Notification”
are excluded.
2. “Estimated loss amounts” are the EL at the beginning of the term.
3. “After deduction of reserves” represents the estimated loss amounts after deduction of reserves for possible losses on substandard borrowers or below.
193
SMFGCapital Ratio InformationSMFG 2013
■ Standardized Approach
1. Scope
The following consolidated subsidiaries have adopted the standardized approach for exposures as of March 31, 2013 (i.e. consolidated
subsidiaries not listed in the “Internal Ratings-Based (IRB) Approach: 1. Scope” on page 183).
(1) Consolidated Subsidiaries Planning to Adopt Phased Rollout of the IRB Approach
Cedyna Financial Corporation
(2) Other Consolidated Subsidiaries
These are consolidated subsidiaries judged not to be significant in terms of credit risk management based on the type of business, scale,
and other factors. These subsidiaries will adopt the standardized approach on a permanent basis.
2. Credit Risk-Weighted Asset Calculation Methodology
A 100% risk weight is applied to claims on corporates in accordance with Article 45 of the Notification, and risk weights corresponding to
country risk scores published by the Organization for Economic Co-operation and Development (OECD) are applied to claims on sovereigns
and financial institutions.
3. Exposure Balance by Risk Weight Segment
March 31
0% ............................................................................................
10% ..........................................................................................
20% ..........................................................................................
35% ..........................................................................................
50% ..........................................................................................
75% ..........................................................................................
100% ........................................................................................
150% ........................................................................................
250% ........................................................................................
1250% ......................................................................................
Others .......................................................................................
Total ..........................................................................................
¥ 5,169.1
213.1
943.8
1.1
129.1
2,864.4
2,559.2
110.6
76.8
0.0
0.0
¥12,067.2
Billions of yen
2013
2012
Of which assigned
country risk score
¥ 30.1
—
367.2
—
24.5
—
0.5
0.0
—
—
—
¥422.2
¥ 8,398.4
224.9
820.8
1,062.7
358.7
3,871.8
3,430.0
156.9
—
0.0
0.0
¥18,324.2
Of which assigned
country risk score
¥ 75.1
—
275.1
—
27.7
—
0.1
0.0
—
—
—
¥378.0
Notes: 1. The above amounts are exposures after CRM (but before deduction of direct write-offs). Please note that for off-balance sheet assets the credit equivalent amount has been
included.
2. “Securitization exposures” have not been included.
3. Of items with a risk weight of 1250% as of March 31, 2012 recorded here are those that are deducted from capital.
194
SMFGCapital Ratio InformationSMFG 2013
■ Credit Risk Mitigation (CRM) Techniques
1. Risk Management Policy and Procedures
In calculating credit risk-weighted asset amounts, SMFG takes into account credit risk mitigation (CRM) techniques. Specifically, amounts
are adjusted for eligible financial or real estate collateral, guarantees, and credit derivatives. The methods and scope of these adjustments and
methods of management are as follows.
(1) Scope and Management
A. Collateral (Eligible Financial or Real Estate Collateral)
SMBC designates deposits and securities as eligible financial collateral, and land and buildings as eligible real estate collateral.
Real estate collateral is evaluated by taking into account its fair value, appraisal value, and current condition, as well as our lien
position. Real estate collateral must maintain sufficient collateral value in the event security rights must be exercised due to delinquency.
However, during the period from acquiring the rights to exercising the rights, the property may deteriorate or suffer damage from
earthquakes or other natural disasters, or there may be changes in the lien position due to, for example, attachment or establishment of
liens by a third party. Therefore, the regular monitoring of collateral is implemented according to the type of property and the type of
security interest.
B. Guarantees and Credit Derivatives
Guarantors are sovereigns, municipal corporations, credit guarantee corporations and other public entities, financial institutions, and
C&I companies. Counterparties to credit derivative transactions are mostly domestic and overseas banks and securities companies.
Credit risk-weighted asset amounts are calculated taking into account credit risk mitigation of guarantees and credit derivatives
acquired from entities with sufficient ability to provide protection such as sovereigns, municipal corporations and other public sector
entities of comparable credit quality, and financial institutions and C&I companies with sufficient credit ratings.
(2) Concentration of Credit Risk and Market Risk Accompanying Application of Credit Risk Mitigation Techniques
At SMBC, there is a framework in place for controlling concentration of risk in obligors with large exposures which includes credit limit
guidelines, risk concentration monitoring, and reporting to the Credit Risk Committee (please refer to page 36). Further, exposures to
these obligors are monitored on a group basis, taking into account risk concentration in their parent companies in cases of guaranteed
exposures.
When marketable financial products (for example, credit derivatives) are used as credit risk mitigants, market risk generated by these
products is controlled by setting upper limits.
2. Exposure Balance after CRM
March 31
Advanced Internal Ratings-Based (AIRB) approach ................
Foundation Internal Ratings-Based (FIRB) approach ..............
Corporate exposures ............................................................
Sovereign exposures ............................................................
Bank exposures ....................................................................
Standardized approach ............................................................
Total ..........................................................................................
Billions of yen
2013
2012
Eligible financial
collateral
¥ —
95.4
91.6
—
3.8
3,721.9
¥3,817.3
Other eligible
IRB collateral
¥ —
65.0
65.0
0.0
—
—
¥65.0
Eligible financial
collateral
¥ —
86.5
86.5
—
—
3,824.9
¥3,911.4
Other eligible
IRB collateral
¥ —
32.7
32.7
—
—
—
¥32.7
Note: For exposures to which the AIRB approach was applied, eligible collateral is separately taken into account in Loss Given Default (LGD) estimates.
Billions of yen
2013
2012
March 31
Internal Ratings-Based (IRB) approach ....................................
Corporate exposures ............................................................
Sovereign exposures ............................................................
Bank exposures ....................................................................
Residential mortgage exposures ..........................................
QRRE ....................................................................................
Other retail exposures ..........................................................
Standardized approach ............................................................
Total ..........................................................................................
Guarantee
¥8,381.6
7,601.0
312.4
315.5
152.7
—
—
23.1
¥8,404.7
Credit derivative
¥222.0
222.0
—
—
—
—
—
—
¥222.0
Guarantee
¥7,153.2
6,426.4
281.3
274.3
171.2
—
—
61.9
¥7,215.1
Credit derivative
¥149.0
149.0
—
—
—
—
—
—
¥149.0
195
SMFGCapital Ratio InformationSMFG 2013 ■ Derivative Transactions and Long Settlement Transactions
1. Risk Management Policy and Procedures
(1) Policy on Collateral Security and Impact of Deterioration of Our Credit Quality
Collateralized derivative is a CRM technique in which collateral is delivered or received regularly in accordance with replacement cost.
The Group conducts collateralized derivative transactions as necessary, thereby reducing credit risk. In the event our credit quality
deteriorates, however, the counterparty may demand additional collateral, but its impact is deemed to be insignificant.
(2) Netting
Netting is another CRM technique, and “close-out netting” is the main type of netting. In close-out netting, when a default event, such
as bankruptcy, occurs to the counterparty, all claims against, and obligations to, the counterparty, regardless of maturity and currency,
are netted out to create a single claim or obligation.
Close-out netting is applied to foreign exchange and swap transactions covered under a master agreement with a net-out clause or
other means of securing legal effectiveness, and the effect of CRM is taken into account only for such claims and obligations.
2. Credit Equivalent Amounts
(1) Derivative Transactions and Long Settlement Transactions
A. Calculation Method
Current exposure method
B. Credit Equivalent Amounts
March 31
Gross replacement cost ................................................................................................................
Gross add-on amount ...................................................................................................................
Gross credit equivalent amount ....................................................................................................
Foreign exchange related transactions .....................................................................................
Interest rate related transactions ...............................................................................................
Gold related transactions ..........................................................................................................
Equities related transactions .....................................................................................................
Precious metals (excluding gold) related transactions ..............................................................
Other commodity related transactions ......................................................................................
Credit default swaps ..................................................................................................................
Reduction in credit equivalent amount due to netting ..................................................................
Net credit equivalent amount ........................................................................................................
Collateral amount ..........................................................................................................................
Eligible financial collateral .........................................................................................................
Other eligible IRB collateral .......................................................................................................
Net credit equivalent amount
(after taking into account the CRM effect of collateral) ...............................................................
Billions of yen
2013
¥ 6,661.7
3,703.2
10,364.9
2,533.4
7,582.1
—
113.7
—
71.9
63.9
6,643.7
3,721.2
17.9
17.9
—
2012
¥5,729.0
3,370.1
9,099.1
2,689.0
6,165.5
—
73.5
—
99.5
71.6
5,478.8
3,620.3
19.8
19.8
—
¥ 3,703.3
¥3,600.6
(2) Notional Principal Amounts of Credit Derivatives
Credit Default Swaps
Billions of yen
2013
Notional principal amount
2012
Notional principal amount
March 31
Protection purchased .........................................................
Protection provided ............................................................
Total
¥777.8
716.8
Of which
for CRM
¥222.0
—
Total
¥672.7
635.8
Of which
for CRM
¥149.0
—
Note: “Notional principal amount” is defined as the total of “amounts subject to calculation of credit equivalents” and “amounts employed for CRM.”
196
SMFGCapital Ratio InformationSMFG 2013 ■ Securitization Exposures
1. Risk Management Policy
Definition of securitization exposure has been clarified in order to properly identify, measure, evaluate and report risks, and a risk management
department, independent of business units, has been established to centrally manage risks from recognizing securitization exposures to
measuring, evaluating and reporting risks.
Securitization transactions are subject to the following policies.
• Undertake those which allow separate assessment of underlying short-term assets by making credit decisions on individual underlying
assets.
• Undertake those which cover short-term receivables, etc., by creating a framework mainly to estimate the default rate of the underlying
assets based on the historical loan-loss ratio and ensure that they have sufficient subordination.
• Undertake others such as those requiring special management by implementing additional management, such as an analysis of the market
environment.
The Group shall basically not conduct resecuritization transactions.
Its policy is to conduct securitization transactions by verifying effectiveness in mitigating credit risk through the use of the asset transfer
type or synthetic type securitization transactions covering domestic and foreign exposures and using them as underlying exposures if
securitization transactions are used as an approach for credit risk mitigation.
The Group takes one of the following positions for securitization transactions.
• Originator (a direct or indirect originator of underlying assets or a sponsor of an ABCP conduit or a similar program that acquires
exposures from third-party entities)
• Investor
• Others (for example, provider of swap for preventing a mismatch between the dividend on trust beneficiary rights and cash flows
generated by underlying assets on which the rights are issued)
2. Overview of Risk Characteristics
Securitization exposures have, in addition to credit risk and market risk, the following intrinsic risks, which are properly managed based on
the nature of each risk.
(1) Dilution Risk
Means the risk of a decrease in purchased receivables due to cancellation or termination of the original contract for the purchased receiv-
ables, or netting of debts between the original obligor and the original obligee.
(2) Servicer Risk
A. Commingling Risk
Means the risk of uncollectible funds, which should be collected from the underlying assets, due to the bankruptcy of the servicer
before the delivery of the funds collected from the obligor of the receivables.
B. Performance Risk
Means the risk of difficulty in maintenance and collection due to the servicer’s failure to properly and accurately perform its clerical
duties and procedures.
(3) Liquidity Risk
Means the risk that cash flows related to the underlying assets may be insufficient for paying the principal and interest of the securitiza-
tion exposure due to a timing mismatch between the securitization conduit’s receipt of the cash flows related to the underlying assets and
payment of the securitization exposure of the principal and interest, etc.
(4) Fraud Risk
Means the risk of a decrease in or complete loss of the receivables subject to collection due to a fraud, prejudicial or other malicious act by
a customer or a third-party obligor.
197
SMFGCapital Ratio InformationSMFG 2013
3. Calculation Methodology for Credit Risk-Weighted Assets and Market Risk Equivalent Amount
There are three methods of calculating the credit risk-weighted asset amount of securitization exposures subject to the IRB approach:
the ratings-based approach, the supervisory formula, and the internal assessment approach. The methods are used as follows.
• First, securitization exposures are examined and the ratings-based approach is applied to qualifying exposures.
• The remaining exposures are examined and the supervisory formula is applied to qualifying exposures.
• In cases where neither the ratings-based approach nor the supervisory formula can be applied, a risk weight of 1250% is applied.
Note that the application of the ratings-based approach is subject to monitoring in accordance with the “Regulations Concerning the
Distribution, etc. of Securitized Products” and the “Standardized Information Reporting Package (SIRP)” published by the Japan Securities
Dealers Association. The same applies to resecuritized products.
The credit risk-weighted asset amount for securitization exposures subject to the standardized approach is calculated mostly using ratings
published by qualifying rating agencies or based on weighted average risk weights of underlying assets as stipulated in the Notification.
In order to determine market risk equivalent amounts of “securitization exposures,” general market risk is subject to the standardized
measurement method while specific risk is based on the risk weights corresponding to the ratings published by qualifying rating agencies
pursuant to the regulations set forth in the Notification.
4. Type of Securitization Conduit Used in Securitization Transactions Associated with Third Party Assets and Status of Holdings of
Securitization Exposures Related to Such Transactions
In order to undertake securitization transactions related to third-party assets, the Group mainly uses a special purpose company (SPC) as a
securitization conduit.
If such transactions are undertaken, the following securitization exposures result.
• Backup line to the ABCP issued by the securitization conduit (off-balance sheet assets)
• ABL to the securitization conduit (on-balance sheet assets), etc.
5. Names of Subsidiaries and Affiliated Companies Holding Securitization Exposures Related to Securitization Transactions
Conducted by Holding Company Group
No securitization exposures related to the security transactions conducted by the Holding Company Group are held by the subsidiaries or
affiliated companies excluding consolidated subsidiaries.
6. Accounting Policy on Securitization Transactions
Valuation, accounting treatment etc. for financial assets and financial liabilities associated with securitization transactions are mainly gov-
erned by the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10). The fair value for such valuation is the value based
on the market price or, if there is no market price, reasonably calculated value, unless it is deemed to be extremely difficult to determine the
fair value.
Accounting treatment of securitization of financial assets is as follows. Extinguishment of financial assets is recognized when the contrac-
tual rights over the financial assets are exercised, forfeited or control over the rights is transferred to a third-party, and the difference between
the book value of the financial assets and the amount received/paid is recorded as the term’s gain/loss. When the control over the contractual
rights is not deemed to have been transferred, the securitization transaction is treated as a financial transaction such as a mortgage loan.
When a portion of financial assets satisfies the extinguishment condition, the extinguishment of the said portion is recognized and the
difference between the book value of the extinguished portion and the amount received/paid is recorded as the term’s gain/loss. The book
value of the extinguished portion is calculated by allocating the book value of the financial assets based on the proportion of the financial
assets’ fair value that the extinguished portion represents.
Further, the remaining portion whose fair value is available is measured at fair value, and the related valuation differences are reported as
a component of “net assets.” The impairments are measured and recorded as necessary.
7. Qualifying External Ratings Agencies
In order to apply the rating-based approach under the IRB approach or standardized approach or to calculate an amount of market risk asso-
ciated with specific risk, the risk weights are determined by mapping the ratings of qualifying rating agencies to the risk weights stipulated
in the Notification. The qualifying rating agencies are Rating and Investment Information, Inc. (R&I), Japan Credit Rating Agency, Ltd.
(JCR), Moody’s Investors Service, Inc. (Moody’s), Standard & Poor’s Ratings Services (S&P), and Fitch Ratings Ltd. (Fitch). When more than
one rating is available for an exposure, the second smallest risk weight is used, in accordance with the Notification.
198
SMFGCapital Ratio InformationSMFG 2013
8. Portfolio (Credit Risk)
(1) Securitization Transactions as Originator
A. As Originator (Excluding as Sponsor)
(A) Underlying Assets
March 31, 2013
Underlying asset amount
Asset
transfer type
¥ 5.6
1,279.4
Synthetic
type
¥ —
—
Total
¥ 5.6
1,279.4
27.3
135.8
¥1,448.1
8.2
13.4
¥1,306.5
19.1
122.4
¥141.5
March 31, 2012
Underlying asset amount
Asset
transfer type
¥ 17.6
1,378.4
Synthetic
type
¥ —
—
Total
¥ 17.6
1,378.4
131.7
221.9
¥1,749.6
107.6
23.8
¥1,527.5
24.1
198.0
¥222.1
Billions of yen
Fiscal 2012
Securitized
amount
¥ —
119.0
—
—
¥119.0
Default
amount
¥ 2.2
1.7
11.9
—
¥15.7
Loss
amount
¥ 2.1
0.4
19.4
—
¥21.9
Gains/losses
on sales
¥ —
9.8
—
—
¥9.8
Billions of yen
Fiscal 2011
Securitized
amount
¥ —
77.6
—
—
¥77.6
Default
amount
¥ 3.3
1.5
12.0
0.0
¥16.8
Loss
amount
¥ 2.9
0.3
19.0
0.0
¥22.2
Gains/losses
on sales
¥ —
6.5
—
—
¥6.5
Claims on corporates ................
Mortgage loans .........................
Retail loans
(excluding mortgage loans) .....
Other claims ..............................
Total ...........................................
Claims on corporates ................
Mortgage loans .........................
Retail loans
(excluding mortgage loans) .....
Other claims ..............................
Total ...........................................
Notes: 1. The above amounts include the amount of underlying assets securitized during the term without entailing “securitization exposures.”
2. “Default amount” is the total of underlying assets which are past due three months or more and defaulted underlying assets.
3. Asset type classification is based on the major items in the underlying assets for each transaction.
4. “Other claims” includes claims on Private Finance Initiative (PFI) businesses and lease fees.
5. Following Articles 230 and 248 of the Notification, there are no amounts that represent “exposure to products subject to early amortization provisions” to
investors.
6. There are no amounts that represent “assets held for securitization transactions.”
(B) Securitization Exposures (Excluding Resecuritization Exposures)
a. Underlying Assets by Asset Type
Billions of yen
2012
Term-end balance
2013
Term-end balance
Amounts
subject to
a 1250%
risk weight
Off-balance
sheet assets
¥ — ¥ 1.2
30.2
—
Increase
in capital
equivalent
¥ —
39.1
On-balance
sheet assets
¥ 6.9
221.8
2.9
1.1
¥232.8
6.6
73.4
¥80.0
7.0
1.9
¥40.4
0.1
—
¥39.1
On-balance
sheet assets
¥ 16.5
212.5
Off-balance
sheet assets
To be
deducted
from capital
¥ — ¥ 2.0
33.0
—
Increase
in capital
equivalent
¥ —
38.1
40.4
2.4
¥271.9
8.3
146.6
¥155.0
43.2
4.1
¥82.3
0.2
—
¥38.3
Total
¥ 16.5
212.5
48.7
149.1
¥426.8
Total
March 31
Claims on corporates ..... ¥ 6.9
Mortgage loans ..............
221.8
Retail loans (excluding
mortgage loans) ............
9.6
Other claims ...................
74.4
Total ................................ ¥312.8
b. Risk Weights
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥ 45.8
29.1
1.3
—
236.5
¥312.8
Billions of yen
2013
Term-end balance
On-balance
sheet assets
¥ 2.2
—
—
—
230.6
¥232.8
Off-balance
sheet assets
¥43.6
29.1
1.3
—
6.0
¥80.0
Required
capital
¥ 0.5
0.9
0.1
—
42.6
¥44.1
2012
Term-end balance
On-balance
sheet assets
¥ 11.4
—
1.8
—
258.6
¥271.9
Off-balance
sheet assets
¥145.0
3.2
0.1
—
6.7
¥155.0
Total
¥156.4
3.2
1.9
—
265.4
¥426.8
Required
capital
¥ 1.4
0.2
0.3
—
82.3
¥84.2
Note: Of items with a risk weight of 1250% as of March 31, 2012 recorded here are those that are deducted from capital.
199
SMFGCapital Ratio InformationSMFG 2013
(C) Resecuritization Exposures
There are no amounts that represent “resecuritization exposures.”
(D) Amount of Credit Risk-Weighted Assets Calculated Using Supplementary Provision 15 of the Notification
March 31
Amount of credit risk-weighted assets calculated using Supplementary Provision 15 of the Notification ...
2013
¥—
2012
¥4.1
Billions of yen
B. As Sponsor
(A) Underlying Assets
Claims on corporates ..............................
Mortgage loans .......................................
Retail loans (excluding mortgage loans) ....
Other claims ............................................
Total .........................................................
Claims on corporates ..............................
Mortgage loans .......................................
Retail loans (excluding mortgage loans) ....
Other claims ............................................
Total .........................................................
Billions of yen
March 31, 2013
Underlying asset amount
Asset
transfer type
¥776.9
—
133.3
58.3
¥968.5
Total
¥776.9
—
133.3
58.3
¥968.5
Synthetic
type
¥—
—
—
—
¥—
Fiscal 2012
Securitized
amount
¥4,671.0
—
487.5
21.3
¥5,179.8
Default
amount
¥74.9
2.3
11.1
1.6
¥90.0
Billions of yen
March 31, 2012
Underlying asset amount
Asset
transfer type
¥508.0
—
157.3
66.9
¥732.2
Total
¥508.0
—
157.3
66.9
¥732.2
Synthetic
type
¥—
—
—
—
¥—
Fiscal 2011
Securitized
amount
¥4,336.8
—
395.5
34.1
¥4,766.5
Default
amount
¥69.8
2.8
17.4
4.3
¥94.2
Loss
amount
¥73.3
2.3
11.9
1.4
¥89.0
Loss
amount
¥68.1
2.8
17.9
4.0
¥92.8
Notes: 1. The above amounts include the amount of underlying assets securitized during the term without entailing “securitization exposures.”
2. “Default amount” is the total of underlying assets which are past due three months or more and defaulted underlying assets.
3. “Default amount” and “Loss amount” when acting as a sponsor of securitization of customer claims are estimated using the following methods and
alternative data, as in some cases it can be difficult to obtain relevant data in a timely manner because the underlying assets have been recovered by the
customer.
(1) “Default amount” estimation method
• For securitization transactions subject to the ratings-based approach, the amount is estimated based on information on underlying assets obtainable from
customers, etc.
• For securitization transactions subject to the supervisory formula, the amount is estimated based on obtainable information on, or default rate of, each
obligor. Further, when it is difficult to estimate the amount using either method, it is conservatively estimated by assuming that the underlying asset is a
default asset.
(2) “Loss amount” estimation method
• For securitization transactions subject to the ratings-based approach, the amount is the same amount as the “Default amount” estimated conservatively in (1)
above.
• For securitization transactions subject to the supervisory formula, when expected loss ratios of defaulted underlying assets can be determined, the amount
is estimated using the ratios. When it is difficult to determine the ratios, the amount is the same amount as the “Default amount” estimated conservatively
in (1) above.
4. Asset type classification is based on the major items in the underlying assets for each transaction.
5. “Other claims” includes lease fees.
6. Following Articles 230 and 248 of the Notification, there are no amounts that represent “exposure to products subject to early amortization provisions” to
investors.
7. There are no amounts that represent “assets held for securitization transactions.”
(B) Securitization Exposures (Excluding Resecuritization Exposures)
a. Underlying Assets by Asset Type
Billions of yen
2013
Term-end balance
On-balance
sheet assets
¥277.0
—
Off-balance
sheet assets
¥335.8
—
Amounts
subject to
a 1250%
risk weight
¥—
—
Increase
in capital
equivalent
¥—
—
9.3
34.7
¥321.0
114.7
16.6
¥467.1
—
—
¥—
—
—
¥—
Total
March 31
Claims on corporates ..... ¥612.8
Mortgage loans ..............
—
Retail loans (excluding
mortgage loans) .............
124.0
Other claims ...................
51.3
Total ................................ ¥788.0
200
2012
Term-end balance
On-balance
sheet assets
¥170.7
—
Off-balance
sheet assets
¥228.0
—
To be
deducted
from capital
¥0.0
—
Increase
in capital
equivalent
¥—
—
65.3
46.0
¥281.9
80.2
15.5
¥323.8
—
—
¥0.0
—
—
¥—
Total
¥398.7
—
145.5
61.5
¥605.7
SMFGCapital Ratio InformationSMFG 2013
b. Risk Weights
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥778.8
8.2
1.0
—
—
¥788.0
Billions of yen
2013
Term-end balance
On-balance
sheet assets
¥315.7
5.2
—
—
—
¥321.0
Off-balance
sheet assets
¥463.1
3.0
1.0
—
—
¥467.1
Required
capital
¥5.0
0.3
0.1
—
—
¥5.5
2012
Term-end balance
On-balance
sheet assets
¥274.4
6.3
1.2
—
0.0
¥281.9
Off-balance
sheet assets
¥322.8
1.0
—
—
—
¥323.8
Total
¥597.2
7.3
1.2
—
0.0
¥605.7
Required
capital
¥3.9
0.3
0.1
—
0.0
¥4.4
Note: Of items with a risk weight of 1250% as of March 31, 2012 recorded here are those that are deducted from capital.
(C) Resecuritization Exposures
There are no amounts that represent “resecuritization exposures.”
(D) Amount of Credit Risk-Weighted Assets Calculated Using Supplementary Provision 15 of the Notification
March 31
Amount of credit risk-weighted assets calculated using Supplementary Provision 15 of the Notification ...
2013
¥—
2012
¥—
Billions of yen
(2) Securitization Transactions in which the Group is the Investor
(A) Securitization Exposures (Excluding Resecuritization Exposures)
a. Underlying Assets by Asset Type
Billions of yen
Total
March 31
Claims on corporates ..... ¥368.8
Mortgage loans ..............
67.4
Retail loans (excluding
mortgage loans) .............
104.9
Other claims ...................
6.9
Total ................................ ¥548.0
2013
Term-end balance
On-balance
sheet assets
¥126.2
67.4
Off-balance
sheet assets
¥242.6
—
Amounts
subject to
a 1250%
risk weight
¥49.3
—
Increase
in capital
equivalent
¥—
—
94.6
6.9
¥295.1
10.3
—
¥252.9
—
—
¥49.3
—
—
¥—
2012
Term-end balance
On-balance
sheet assets
¥118.4
65.6
Off-balance
sheet assets
¥193.5
—
To be
deducted
from capital
¥44.2
—
Increase
in capital
equivalent
¥—
—
2.5
22.9
¥209.5
—
—
¥193.5
—
—
¥44.2
—
—
¥—
Total
¥311.9
65.6
2.5
22.9
¥403.0
Note: Asset type classification is based on the major items in the underlying assets for each transaction.
b. Risk Weights
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥422.3
35.3
—
—
90.4
¥548.0
Billions of yen
2013
Term-end balance
On-balance
sheet assets
¥259.2
35.3
—
—
0.6
¥295.1
Off-balance
sheet assets
¥163.1
—
—
—
89.8
¥252.9
Required
capital
¥ 1.9
1.3
—
—
52.3
¥55.5
2012
Term-end balance
On-balance
sheet assets
¥178.2
28.3
2.3
—
0.7
¥209.5
Off-balance
sheet assets
¥115.1
—
—
—
78.4
¥193.5
Total
¥293.2
28.3
2.3
—
79.1
¥403.0
Required
capital
¥ 1.5
1.8
0.2
—
44.2
¥47.6
Note: Of items with a risk weight of 1250% as of March 31, 2012 recorded here are those that are deducted from capital.
201
SMFGCapital Ratio InformationSMFG 2013 (B) Resecuritization Exposures
a. Underlying Assets by Asset Type
2013
Term-end balance
March 31
Claims on corporates .....
Mortgage loans ..............
Retail loans (excluding
mortgage loans) .............
Other claims ...................
Total ................................
Total
¥0.8
—
—
1.3
¥2.1
On-balance
sheet assets
Off-balance
sheet assets
¥0.8
—
—
0.7
¥1.5
¥ —
—
—
0.6
¥0.6
Billions of yen
Amounts
subject to
a 1250%
risk weight
¥0.2
—
Increase
in capital
equivalent
¥—
—
—
0.7
¥0.9
—
—
¥—
2012
Term-end balance
Total
¥2.0
—
0.3
0.9
¥3.1
On-balance
sheet assets
Off-balance
sheet assets
¥1.7
—
—
0.6
¥2.3
¥0.3
—
0.3
0.3
¥0.8
To be
deducted
from capital
¥0.4
—
Increase
in capital
equivalent
¥—
—
—
0.6
¥1.0
—
—
¥—
Notes: 1. Asset type classification is based on the major items in the underlying assets for each transaction.
2. “Other claims” includes securitization products.
3. Credit risk mitigation (CRM) techniques are not applied to the resecuritization exposures.
b. Risk Weights
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥1.1
—
—
—
1.1
¥2.1
Billions of yen
2013
Term-end balance
On-balance
sheet assets
Off-balance
sheet assets
¥0.4
—
—
—
1.1
¥1.5
¥0.6
—
—
—
—
¥0.6
Required
capital
¥0.0
—
—
—
0.9
¥0.9
2012
Term-end balance
On-balance
sheet assets
Off-balance
sheet assets
¥0.6
—
—
—
1.7
¥2.3
¥0.7
—
—
—
0.1
¥0.8
Total
¥1.3
—
—
—
1.8
¥3.1
Required
capital
¥0.0
—
—
—
1.0
¥1.0
Note: Of items with a risk weight of 1250% as of March 31, 2012 recorded here are those that are deducted from capital.
(C) Amount of Credit Risk-Weighted Assets Calculated Using Supplementary Provision 15 of the Notification
March 31
Amount of credit risk-weighted assets calculated using Supplementary Provision 15 of the Notification ...
2013
¥—
2012
¥—
Billions of yen
9. Portfolio (Market Risk)
(1) Securitization Transactions as Originator
There are no amounts that represent “securitization transactions where the Group serves as the originator.”
(2) Securitization Transactions in which the Group is the Investor
(A) Securitization Exposures (Excluding Resecuritization Exposures)
a. Underlying Assets by Asset Type
Billions of yen
2013
Term-end balance
Total
On-balance
sheet assets
Off-balance
sheet assets
¥—
—
—
—
¥—
¥—
—
—
—
¥—
¥—
—
—
—
¥—
Amounts
subject to
a 100%
risk weight
¥—
—
Increase
in capital
equivalent
¥—
—
—
—
¥—
—
—
¥—
2012
Term-end balance
Total
¥0.5
—
—
—
¥0.5
On-balance
sheet assets
Off-balance
sheet assets
¥0.5
—
—
—
¥0.5
¥—
—
—
—
¥—
To be
deducted
from capital
¥0.5
—
Increase
in capital
equivalent
¥—
—
—
—
¥0.5
—
—
¥—
March 31
Claims on corporates .....
Mortgage loans ..............
Retail loans (excluding
mortgage loans) .............
Other claims ...................
Total ................................
Note: There are no amounts that represent “securitization exposures subject to the measurement of the comprehensive risk held.”
202
SMFGCapital Ratio InformationSMFG 2013
b. Risk Weights
March 31
Less than 100% .............
100% ..............................
Total ................................
Total
¥—
—
¥—
Billions of yen
2013
Term-end balance
On-balance
sheet assets
Off-balance
sheet assets
¥—
—
¥—
¥—
—
¥—
Required
capital
¥—
—
¥—
2012
Term-end balance
On-balance
sheet assets
Off-balance
sheet assets
¥ —
0.5
¥0.5
¥—
—
¥—
Total
¥ —
0.5
¥0.5
Required
capital
¥ —
0.5
¥0.5
Note: Of items with a risk weight of 100% as of March 31, 2012 recorded here are those that are deducted from capital.
(B) Resecuritization Exposures
There are no amounts that represent “resecuritization exposures.”
■ Equity Exposures in Banking Book
1. Risk Management Policy and Procedures
Securities in the banking book are properly managed, for example, by setting upper limits on the allowable amount of risk under the market
or credit risk management framework selected according to their holding purpose and risk characteristics.
For securities held as “available-for-sale securities,” the upper limits are also set in terms of price fluctuation risk and default risk.
Regarding stocks of subsidiaries, assets and liabilities of subsidiaries are risk-managed on a consolidated basis. As for stocks of affiliates,
risks related to gains and losses from investments are recognized separately. As in each case maximum allowable amount of risk is managed
individually, risks as stocks are not measured. The limits are established within the “risk capital limit” of SMFG, taking into account the
financial and business situations of the subsidiaries and affiliates.
2. Valuation of Securities in Banking Book and Other Significant Accounting Policies
Stocks of subsidiaries and affiliates are carried at amortized cost using the moving-average method. Available-for-sale securities with market
prices (including foreign stocks) are carried at their average market prices during the final month of the fiscal year. Securities other than
these securities are carried at their fiscal year-end market prices (cost of securities sold is calculated using primarily the moving-average
method) and those with no available market prices are carried at cost using the moving-average method.
Net unrealized gains (losses) on available-for-sale securities and net of income taxes are reported as a component of “net assets.” Derivative
transactions are carried at fair value.
3. Consolidated Balance Sheet Amounts and Fair Values
March 31
Listed equity exposures ...........................................................
Equity exposures other than above ..........................................
Total ..........................................................................................
Balance sheet amount
¥3,067.5
310.7
¥3,378.2
Fair value
¥3,067.5
—
¥ —
Balance sheet amount
¥2,444.0
505.7
¥2,949.7
Fair value
¥2,444.0
—
¥ —
Billions of yen
2013
2012
4. Gains (Losses) on Sale and Devaluation of Equity Exposures
Gains (losses) .........................................................................................................................................
Gains on sale ..................................................................................................................................
Losses on sale ................................................................................................................................
Devaluation .....................................................................................................................................
Note: The above amounts are gains (losses) on stocks and available-for-sale securities in the consolidated statements of income.
Billions of yen
Fiscal 2012
¥(21.0)
38.4
29.4
29.9
Fiscal 2011
¥(27.9)
15.7
11.7
31.9
5. Unrealized Gains (Losses) Recognized on Consolidated Balance Sheets but Not on Consolidated Statements of Income
Billions of yen
March 31
Unrealized gains (losses) recognized on consolidated balance sheets
but not on consolidated statements of income....................................................................................
2013
2012
¥867.6
¥338.8
Note: The above amount is for stocks of Japanese companies and foreign stocks with market prices.
203
SMFGCapital Ratio InformationSMFG 2013
6. Unrealized Gains (Losses) Not Recognized on Consolidated Balance Sheets or Consolidated Statements of Income
March 31
Unrealized gains (losses) not recognized on
consolidated balance sheets or consolidated statements of income ..................................................
Note: The above amount is for stocks of affiliates with market prices.
Billions of yen
2013
2012
¥(11.4)
¥(21.4)
■ Exposure Balance by Type of Assets, Geographic Region, Industry and Residual Term
1. Exposure Balance by Type of Assets, Geographic Region and Industry
March 31, 2013
Domestic operations (excluding offshore banking accounts)
Loans, etc.
Bonds
Billions of yen
Derivatives
Others
Total
Manufacturing............................................................................ ¥ 9,917.3
Agriculture, forestry, fishery and mining ....................................
189.1
Construction ..............................................................................
1,209.2
Transport, information, communications and utilities ................
5,837.9
Wholesale and retail ..................................................................
5,775.0
Financial and insurance .............................................................
13,577.4
Real estate, goods rental and leasing .......................................
8,461.2
Services .....................................................................................
4,880.7
Local municipal corporations ....................................................
1,887.5
Other industries .........................................................................
26,313.6
Subtotal ..................................................................................... ¥ 78,048.8
Overseas operations and offshore banking accounts
Sovereigns ................................................................................. ¥ 5,869.6
Financial institutions ..................................................................
4,106.0
C&I companies ..........................................................................
15,388.9
Others ........................................................................................
3,276.4
Subtotal ..................................................................................... ¥ 28,640.8
Total ............................................................................................... ¥106,689.6
¥ 242.9
4.3
44.0
188.0
54.8
489.8
228.3
101.2
452.6
30,762.8
¥32,568.6
¥ 1,489.1
229.5
255.9
199.2
¥ 2,173.6
¥34,742.2
¥ 325.5
5.4
4.8
132.8
249.0
1,546.3
49.6
49.9
10.6
64.6
¥2,438.6
¥ 9.8
742.0
474.3
37.4
¥1,263.5
¥3,702.1
¥ 2,222.4
30.6
179.7
845.0
848.4
1,885.1
335.2
569.9
13.5
4,110.6
¥11,040.6
¥ 9.2
735.0
474.7
1,499.4
¥ 2,718.2
¥13,758.8
¥ 12,708.1
229.4
1,437.7
7,003.7
6,927.1
17,498.7
9,074.4
5,601.7
2,364.2
61,251.6
¥124,096.5
¥ 7,377.6
5,812.5
16,593.8
5,012.3
¥ 34,796.1
¥158,892.7
March 31, 2012
Domestic operations (excluding offshore banking accounts)
Manufacturing............................................................................
Agriculture, forestry, fishery and mining ....................................
Construction ..............................................................................
Transport, information, communications and utilities ................
Wholesale and retail ..................................................................
Financial and insurance .............................................................
Real estate, goods rental and leasing .......................................
Services .....................................................................................
Local municipal corporations ....................................................
Other industries .........................................................................
Subtotal .....................................................................................
Overseas operations and offshore banking accounts
Sovereigns .................................................................................
Financial institutions ..................................................................
C&I companies ..........................................................................
Others ........................................................................................
Subtotal .....................................................................................
Total ...............................................................................................
Notes: 1. The above amounts are exposures after CRM.
Loans, etc.
Bonds
Billions of yen
Derivatives
Others
Total
¥ 9,679.3
233.5
1,246.3
5,250.7
5,594.5
15,079.2
8,047.8
4,528.8
1,922.5
27,441.9
¥79,024.5
¥ 2,748.4
3,145.8
12,171.1
2,445.3
¥20,510.6
¥99,535.1
¥ 230.7
3.4
51.6
173.5
63.4
470.5
279.7
118.0
573.1
33,346.5
¥35,310.4
¥ 1,066.7
216.6
204.2
251.1
¥ 1,738.6
¥37,049.0
¥ 435.3
9.7
7.2
180.6
430.1
1,252.3
49.2
60.7
12.4
65.4
¥2,502.8
¥ 7.6
663.8
398.0
27.3
¥1,096.6
¥3,599.4
¥1,802.3
26.8
147.6
646.3
546.7
322.7
313.0
499.1
6.8
3,807.0
¥8,118.3
¥ 12,147.5
273.5
1,452.8
6,251.2
6,634.7
17,124.6
8,689.7
5,206.6
2,514.7
64,660.7
¥124,956.0
¥ — ¥ 3,822.7
4,037.5
12,773.3
3,317.0
¥ 23,950.5
¥148,906.6
11.4
—
593.4
¥ 604.7
¥8,723.0
2. The above amounts do not include “securitization exposures” and “credit risk-weighted assets under Article 145 of the Notification.”
3. “Loans, etc.” includes loans, commitments and off-balance sheet assets except derivatives, and “Others” includes equity exposures, standardized approach applied funds,
and CVA risk equivalent amount exposures, etc.
4. “Domestic operations” comprises the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic consolidated
subsidiaries. “Overseas operations” comprises the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas consolidated subsidiaries.
204
SMFGCapital Ratio InformationSMFG 2013
2. Exposure Balance by Type of Assets and Residual Term
Loans, etc.
March 31, 2013
To 1 year ........................................................................................ ¥ 35,122.9
More than 1 year to 3 years...........................................................
15,025.7
More than 3 years to 5 years .........................................................
13,631.5
More than 5 years to 7 years .........................................................
5,411.7
More than 7 years ..........................................................................
24,835.3
No fixed maturity ...........................................................................
12,662.4
Total ............................................................................................... ¥106,689.6
March 31, 2012
To 1 year ........................................................................................
More than 1 year to 3 years...........................................................
More than 3 years to 5 years .........................................................
More than 5 years to 7 years .........................................................
More than 7 years ..........................................................................
No fixed maturity ...........................................................................
Total ...............................................................................................
Loans, etc.
¥33,826.0
13,771.2
11,335.7
5,118.9
24,111.9
11,371.4
¥99,535.1
Notes: 1. The above amounts are exposures after CRM.
Bonds
¥ 9,156.4
11,803.3
10,333.2
2,204.2
1,245.1
—
¥34,742.2
Bonds
¥ 8,071.5
13,576.9
11,511.2
1,286.6
2,602.7
—
¥37,049.0
Billions of yen
Derivatives
¥ 672.6
713.5
1,415.6
287.8
612.7
—
¥3,702.1
Billions of yen
Derivatives
¥ 480.4
899.0
1,216.5
295.8
707.7
—
¥3,599.4
Others
¥ 915.1
1,150.7
1,818.5
430.8
811.5
8,632.1
¥13,758.8
Total
¥ 45,867.1
28,693.2
27,198.8
8,334.5
27,504.6
21,294.5
¥158,892.7
Others
¥ 216.7
505.4
559.7
141.9
153.4
7,145.9
¥8,723.0
Total
¥ 42,594.6
28,752.5
24,623.0
6,843.3
27,575.8
18,517.4
¥148,906.6
2. The above amounts do not include “securitization exposures” and “credit risk-weighted assets under Article 145 of the Notification.”
3. “Loans, etc.” includes loans, commitments and off-balance sheet assets except derivatives, and “Others” includes equity exposures, standardized approach applied funds,
and CVA risk equivalent amount exposures, etc.
4. “No fixed maturity” includes exposures not classified by residual term.
3. Term-End Balance of Exposures Past Due 3 Months or More or Defaulted and Their Breakdown
(1) By Geographic Region
Billions of yen
March 31
Domestic operations (excluding offshore banking accounts) ........................................................
Overseas operations and offshore banking accounts .....................................................................
Asia ..............................................................................................................................................
North America..............................................................................................................................
Other regions ...............................................................................................................................
Total .................................................................................................................................................
2013
¥2,365.5
114.2
26.1
18.6
69.5
¥2,479.7
2012
¥2,492.3
148.5
18.9
53.8
75.8
¥2,640.8
Notes: 1. The above amounts are credits subject to self-assessment, including mainly off-balance sheet credits to obligors categorized as “Substandard Borrowers” or lower
under self-assessment.
2. The above amounts include partial direct write-offs (direct reductions).
3. “Domestic operations” comprises the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. “Overseas operations” comprises the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas
consolidated subsidiaries, and the term-end balances are calculated based on the obligor’s domicile country.
(2) By Industry
Billions of yen
March 31
Domestic operations (excluding offshore banking accounts)
Manufacturing...................................................................................
Agriculture, forestry, fishery and mining ...........................................
Construction .....................................................................................
Transport, information, communications and utilities .......................
Wholesale and retail .........................................................................
Financial and insurance ....................................................................
Real estate, goods rental and leasing ..............................................
Services ............................................................................................
Other industries ................................................................................
Subtotal ............................................................................................
Overseas operations and offshore banking accounts
Financial institutions .........................................................................
C&I companies .................................................................................
Others ...............................................................................................
Subtotal ............................................................................................
Total ......................................................................................................
2013
¥ 278.1
6.0
114.6
247.3
293.2
17.0
703.4
267.6
438.3
¥2,365.5
¥ 6.2
105.8
2.2
¥ 114.2
¥2,479.7
2012
¥ 256.8
7.0
142.3
234.7
333.6
24.9
693.9
304.3
494.8
¥2,492.3
¥ 14.1
132.2
2.2
¥ 148.5
¥2,640.8
Notes: 1. The above amounts are credits subject to self-assessment, including mainly off-balance sheet credits to obligors categorized as “Substandard Borrowers” or lower
under self-assessment.
2. The above amounts include partial direct write-offs (direct reductions).
3. “Domestic operations” comprises the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. “Overseas operations” comprises the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas
consolidated subsidiaries.
205
SMFGCapital Ratio InformationSMFG 2013
4. Term-End Balances of General Reserve for Possible Loan Losses, Specific Reserve for Possible Loan Losses and Loan Loss
Reserve for Specific Overseas Countries
(1) By Geographic Region
March 31
General reserve for possible loan losses.........................................
Loan loss reserve for specific overseas countries ..........................
Specific reserve for possible loan losses ........................................
Domestic operations (excluding offshore banking accounts) .....
Overseas operations and offshore banking accounts .................
Asia ..........................................................................................
North America ..........................................................................
Other regions ...........................................................................
Total .................................................................................................
2013 (A)
¥ 539.3
0.0
1,042.7
990.7
52.0
15.0
12.2
24.8
¥1,582.0
Notes: 1. “Specific reserve for possible loan losses” includes partial direct write-offs (direct reductions).
Billions of yen
2012 (B)
¥ 593.3
0.2
1,071.3
1,008.2
63.1
12.9
22.3
27.9
¥1,664.8
2011
¥ 696.2
0.6
1,230.0
1,148.2
81.8
16.0
24.3
41.5
¥1,926.8
Increase (decrease)
(A) – (B)
¥(54.0)
(0.2)
(28.6)
(17.5)
(11.1)
2.1
(10.1)
(3.1)
¥(82.8)
2. “Domestic operations” comprises the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. “Overseas operations” comprises the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas
consolidated subsidiaries, and the term-end balances are calculated based on the obligor’s domicile country.
(2) By Industry
Billions of yen
March 31
General reserve for possible loan losses..............................................
Loan loss reserve for specific overseas countries ...............................
Specific reserve for possible loan losses .............................................
Domestic operations (excluding offshore banking accounts) ..........
Manufacturing ...............................................................................
Agriculture, forestry, fishery and mining .......................................
Construction .................................................................................
Transport, information, communications and utilities ...................
Wholesale and retail......................................................................
Financial and insurance ................................................................
Real estate, goods rental and leasing ..........................................
Services ........................................................................................
Other industries ............................................................................
Overseas operations and offshore banking accounts ......................
Financial institutions .....................................................................
C&I companies .............................................................................
Others ...........................................................................................
Total ......................................................................................................
2013 (A)
¥ 539.3
0.0
1,042.7
990.7
133.2
3.5
60.5
98.4
145.8
12.2
262.1
123.0
152.0
52.0
5.6
44.8
1.6
¥1,582.0
2012 (B)
¥ 593.3
0.2
1,071.3
1,008.2
121.3
3.0
66.0
65.5
139.5
11.9
287.6
127.2
186.2
63.1
10.6
51.6
0.9
¥1,664.8
2011
¥ 696.2
0.6
1,230.0
1,148.2
167.3
3.5
73.5
46.3
175.1
12.2
325.0
156.4
188.9
81.8
26.1
55.7
0.0
¥1,926.8
Increase (decrease)
(A) – (B)
¥(54.0)
(0.2)
(28.6)
(17.5)
11.9
0.5
(5.5)
32.9
6.3
0.3
(25.5)
(4.2)
(34.2)
(11.1)
(5.0)
(6.8)
0.7
¥(82.8)
Notes: 1. “Specific reserve for possible loan losses” includes partial direct write-offs (direct reductions).
2. “Domestic operations” comprises the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. “Overseas operations” comprises the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas
consolidated subsidiaries.
5. Loan Write-Offs by Industry
Billions of yen
Fiscal 2012
Fiscal 2011
Domestic operations (excluding offshore banking accounts)
Manufacturing.........................................................................................
Agriculture, forestry, fishery and mining .................................................
Construction ...........................................................................................
Transport, information, communications and utilities .............................
Wholesale and retail ...............................................................................
Financial and insurance ..........................................................................
Real estate, goods rental and leasing ....................................................
Services ..................................................................................................
Other industries ......................................................................................
Subtotal ..................................................................................................
Overseas operations and offshore banking accounts
Financial institutions ...............................................................................
C&I companies .......................................................................................
Others .....................................................................................................
Subtotal ..................................................................................................
Total ............................................................................................................
¥ 12.3
0.2
2.8
4.0
12.6
(0.4)
2.6
3.1
92.6
¥129.8
¥ (0.1)
2.3
1.6
¥ 3.8
¥133.6
¥ (7.1)
(0.0)
3.3
3.6
7.1
(0.2)
2.2
3.4
76.7
¥89.0
¥ 1.2
(0.7)
0.9
¥ 1.4
¥90.3
Note: “Domestic operations” comprises the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic consolidated
subsidiaries. “Overseas operations” comprises the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas consolidated subsidiaries.
206
SMFGCapital Ratio InformationSMFG 2013
■ Market Risk
1. Scope
The following approaches are used to calculate market risk equivalent amounts.
(1) Internal Models Method
General market risk of SMBC, Sumitomo Mitsui Banking Corporation Europe Limited, Sumitomo Mitsui Banking Corporation (China)
Limited, SMBC Capital Markets, Inc., SMBC Nikko Capital Markets Limited, SMBC Derivative Products Limited, and SMBC Capital
Markets (Asia) Limited
(2) Standardized Measurement Method
• Specific risk
• General market risk of consolidated subsidiaries other than SMBC, Sumitomo Mitsui Banking Corporation Europe Limited,
Sumitomo Mitsui Banking Corporation (China) Limited, SMBC Capital Markets, Inc., SMBC Nikko Capital Markets Limited,
SMBC Derivative Products Limited, and SMBC Capital Markets (Asia) Limited
• A portion of general market risk of SMBC
2. Valuation Method Corresponding to Transaction Characteristics
All assets and liabilities held in the trading book — therefore, subject to calculation of the market risk equivalent amount — are transactions
with high market liquidity. Securities and monetary claims are carried at the fiscal year-end market price, and derivatives such as swaps,
futures and options are stated at amounts that would be settled if the transactions were terminated at the consolidated balance sheet date.
3. VaR Results (Trading Book)
Fiscal year-end .........................................................................
Maximum ..................................................................................
Minimum ...................................................................................
Average ....................................................................................
Fiscal 2012
Fiscal 2011
Billions of yen
VaR
¥2.4
6.3
1.3
3.8
Stressed VaR
¥ 4.7
12.7
2.5
7.7
VaR
¥1.8
3.5
1.0
2.1
Stressed VaR
¥2.5
4.7
1.5
3.0
Notes: 1. The VaR results for a one-day holding period with a one-sided confidence interval of 99.0%, computed daily using the historical simulation method based on four years of
historical observations.
2. The stressed VaR is calculated on a daily basis by using the historical simulation method for the holding period of one day, one-sided confidence interval of 99.0%, and
measurement period of 12 months (including the stress period).
3. Specific risks for the trading book are excluded.
4. Principal consolidated subsidiaries are included.
■ Interest Rate Risk in Banking Book
Interest rate risk in the banking book fluctuates significantly depending on the method of recognizing maturity of demand deposits (such
as current accounts and ordinary deposits from which funds can be withdrawn on demand) and the method of predicting early withdrawal
from fixed-term deposits and prepayment of consumer loans. Key assumptions made by SMBC in measuring interest rate risk in the banking
book are as follows.
1. Method of Recognizing Maturity of Demand Deposits
The total amount of demand deposits expected to remain with the bank for the long term (with 50% of the lowest balance during the past
5 years as the upper limit) is recognized as a core deposit amount and interest rate risk is measured for each maturity with 5 years as the
maximum term (the average is 2.5 years).
2. Method of Estimating Early Withdrawal from Fixed-term Deposits and Prepayment of Consumer Loans
The rate of early withdrawal from fixed-term deposits and the rate of prepayment of consumer loans are estimated and the rates are used to
calculate cash flows used for measuring interest rate risk.
3. VaR Results (Banking Book)
Fiscal year-end .......................................................................................................................................
Maximum ................................................................................................................................................
Minimum .................................................................................................................................................
Average ..................................................................................................................................................
Billions of yen
Fiscal 2012
¥31.1
35.2
23.6
29.5
Fiscal 2011
¥32.0
53.6
31.8
38.9
Notes: 1. The VaR results for a one-day holding period with a one-sided confidence interval of 99.0%, computed daily using the historical simulation method based on four years of
historical observations.
2. Principal consolidated subsidiaries are included.
207
SMFGCapital Ratio InformationSMFG 2013
■ Operational Risk
1. Operational Risk Equivalent Amount Calculation Methodology
SMFG adopted the Advanced Measurement Approach (AMA) for exposures as of March 31, 2008. The following consolidated subsidiaries
have also adopted the AMA, and the remaining consolidated subsidiaries have adopted the Basic Indicator Approach (BIA).
Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Card Company, Limited, The Japan Research Institute, Limited, SMBC
Friend Securities Co., Ltd., Sumitomo Mitsui Finance and Leasing Co., Ltd., SMBC Finance Service Co., Ltd., Kansai Urban Banking
Corporation, The Japan Net Bank, Limited, SMBC Guarantee Co., Ltd., THE MINATO BANK, LTD., SMBC Center Service Co.,
Ltd., SMBC Delivery Service Co., Ltd., SMBC Green Service Co., Ltd., SMBC International Business Co., Ltd., SMBC International
Operations Co., Ltd., SMBC Loan Business Service Co., Ltd., SMBC Market Service Co., Ltd., SMBC Loan Administration and
Operations Service Co., Ltd., Sumitomo Mitsui Banking Corporation Europe Limited, Sumitomo Mitsui Banking Corporation (China)
Limited and SMBC Nikko Securities Inc.
2. Outline of the AMA
For the “Outline of the AMA,” please refer to pages 43 to 45.
3. Usage of Insurance to Mitigate Risk
SMFG had not taken measures to mitigate operational risk through insurance coverage for exposures.
208
SMFGCapital Ratio InformationSMFG 2013
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2013)
209
SMFGCapital Ratio InformationSMFG 2013 210
SMFGCapital Ratio InformationSMFG 2013 211
SMFGCapital Ratio InformationSMFG 2013 212
SMFGCapital Ratio InformationSMFG 2013 Capital Ratio Information (Consolidated)
Sumitomo Mitsui Banking Corporation and Subsidiaries
■ Capital Structure Information (Consolidated Capital Ratio (International Standard))
March 31
Tier 1 capital:
Tier 2 capital:
Deductions:
Total qualifying capital:
Risk-weighted assets:
Tier 1 risk-weighted capital ratio:
Total risk-weighted capital ratio:
Required capital:
Capital stock ....................................................................................................
Capital surplus .................................................................................................
Retained earnings ............................................................................................
Treasury stock ..................................................................................................
Cash dividends to be paid ...............................................................................
Foreign currency translation adjustments ........................................................
Stock acquisition rights ....................................................................................
Minority interests ..............................................................................................
Goodwill and others .........................................................................................
Gain on sale on securitization transactions......................................................
Amount equivalent to 50% of expected losses in excess of reserve ..............
Total Tier 1 capital (A) .......................................................................................
Unrealized gains on other securities after 55% discount.................................
Land revaluation excess after 55% discount ...................................................
General reserve for possible loan losses..........................................................
Excess of eligible reserves relative to expected losses ...................................
Subordinated debt ...........................................................................................
Total Tier 2 capital ............................................................................................
Tier 2 capital included as qualifying capital (B) ................................................
(C) .....................................................................................................................
(D) = (A) + (B) – (C) ............................................................................................
On-balance sheet items ...................................................................................
Off-balance sheet items ...................................................................................
Market risk ........................................................................................................
Operational risk ................................................................................................
Total risk-weighted assets (E) ...........................................................................
(A) / (E) ✕ 100 ....................................................................................................
(D) / (E) ✕ 100 ...................................................................................................
(E) ✕ 8% ...........................................................................................................
Millions of yen
2012
¥ 1,770,996
2,717,397
1,299,484
(210,003)
(24,330)
(139,425)
94
1,539,385
(301,643)
(38,103)
(15,072)
6,598,778
176,804
35,755
43,327
—
2,454,262
2,710,151
2,710,151
258,567
¥ 9,050,362
¥34,477,578
6,954,799
1,134,685
3,528,445
¥46,095,509
14.31%
19.63%
¥ 3,687,640
213
SMBCSMFG 2013 (Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
1a+2-1c-26
1a
2
1c
26
1b
3
5
6
8+9
8
9
10
11
12
13
14
15
16
17
18
19+20+21
19
20
21
22
23
24
25
27
28
29
654,954
331,161
166,102
165,058
4,196
(27,567)
—
39,081
6,658
144,660
96
—
40,443
—
—
—
—
—
—
—
—
Items
Common Equity Tier 1 capital: instruments and reserves
Directly issued qualifying common share capital plus related capital surplus and retained
earnings
of which: capital and capital surplus
of which: retained earnings
of which: treasury stock
of which: cash dividends to be paid
of which: other than the above
Stock acquisition rights to common shares
Accumulated other comprehensive income and other disclosed reserves
Adjusted minority interests, etc. (amount allowed to be included in group Common Equity Tier 1)
Total of items included in Common Equity Tier 1 capital: instruments and reserves subject to
transitional arrangements
of which: minority interests and other items corresponding to common share capital issued
by consolidated subsidiaries (amount allowed to be included in group Common
Equity Tier 1)
Common Equity Tier 1 capital: instruments and reserves
Common Equity Tier 1 capital: regulatory adjustments
Total intangible assets (excluding those relating to mortgage servicing rights)
of which: goodwill (including those equivalent)
of which: other intangible assets other than goodwill and mortgage servicing rights
Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability)
Net deferred losses on hedges
Shortfall of eligible provisions to expected losses
Gain on sale on securitization transactions
Gains and losses due to changes in own credit risk on fair valued liabilities
Prepaid pension cost
Investments in own shares (excluding those reported in the Net assets section)
Reciprocal cross-holdings in common equity
Investments in the capital of banking, financial and insurance entities that are outside the
scope of regulatory consolidation (“Other Financial Institutions”), net of eligible short positions,
where the bank does not own more than 10% of the issued share capital (“Non-significant
Investment”) (amount above the 10% threshold)
Amount exceeding the 10% threshold on specified items
of which: significant investments in the common stock of Other Financial Institutions, net of
eligible short positions
of which: mortgage servicing rights
of which: deferred tax assets arising from temporary differences (net of related tax liability)
Amount exceeding the 15% threshold on specified items
of which: significant investments in the common stock of Other Financial Institutions, net of
eligible short positions
of which: mortgage servicing rights
of which: deferred tax assets arising from temporary differences (net of related tax liability)
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1
and Tier 2 to cover deductions
Common Equity Tier 1 capital: regulatory adjustments
Common Equity Tier 1 capital (CET1)
Common Equity Tier 1 capital (CET1) ((A)-(B))
(B)
(C)
214
6,096,661
4,278,391
1,869,906
—
51,636
—
—
—
146,706
33,773
33,773
(A)
6,277,140
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6,277,140
SMBCCapital Ratio InformationSMFG 2013
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
16,217
1,114,071
1,113,621
450
(108,123)
(108,123)
1,022,165
—
—
—
—
226,552
187,471
39,081
—
226,552
795,612
—
—
369
157,149
Items
Additional Tier 1 capital: instruments
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as equity under applicable accounting standards and the breakdown
Stock acquisition rights to Additional Tier 1 instruments
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as liabilities under applicable accounting standards
Qualifying Additional Tier 1 instruments plus related capital surplus issued by special purpose
vehicles and other equivalent entities
Adjusted minority interests, etc. (amount allowed to be included in group Additional Tier 1)
Eligible Tier 1 capital instruments subject to transitional arrangements included in Additional
Tier 1 capital: instruments
of which: instrument issued by banks and their special purpose vehicles
of which: instruments issued by subsidiaries (excluding banks’ special purpose vehicles)
Total of items included in Additional Tier 1 capital: items subject to transitional arrangements
of which: foreign currency translation adjustments
Additional Tier 1 capital: instruments
Additional Tier 1 capital: regulatory adjustments
Investments in own Additional Tier 1 instruments
Reciprocal cross-holdings in Additional Tier 1 instruments
Non-significant Investments in the Additional Tier 1 capital of Other Financial Institutions, net of
eligible short positions (amount above 10% threshold)
Significant investments in the Additional Tier 1 capital of Other Financial Institutions (net of
eligible short positions)
Total of items included in Additional Tier 1 capital: regulatory adjustments subject to transitional
arrangements
(D)
of which: goodwill and others
of which: gain on sale on securitization transactions
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover
deductions
Additional Tier 1 capital: regulatory adjustments
Additional Tier 1 capital (AT1)
Additional Tier 1 capital ((D)-(E))
Tier 1 capital (T1 = CET1 + AT1)
Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))
Tier 2 capital: instruments and provisions
Directly issued qualifying Tier 2 instruments plus related capital surplus of which: classified as
equity under applicable accounting standards and its breakdown
Stock acquisition rights to Tier 2 instruments
Directly issued qualifying Tier 2 instruments plus related capital surplus of which: classified as
liabilities under applicable accounting standards
Tier 2 instruments plus related capital surplus issued by special purpose vehicles and other
equivalent entities
Adjusted minority interests, etc. (amount allowed to be included in group Tier 2)
Eligible Tier 2 capital instruments subject to transitional arrangements included in Tier 2:
instruments and provisions
of which: instruments issued by banks and their special purpose vehicles
of which: instruments issued by subsidiaries (excluding banks’ special purpose vehicles)
Total of general reserve for possible loan losses and eligible provisions included in Tier 2
of which: general reserve for possible loan losses
of which: eligible provisions
Total of items included in Tier 2 capital: instruments and provisions subject to transitional
arrangements
of which: unrealized gains on other securities after 55% discount
of which: land revaluation excess after 55% discount
Tier 2 capital: instruments and provisions
(H)
(E)
(F)
(G)
7,072,753
—
—
—
—
2,080
1,831,075
1,813,075
18,000
59,426
10,501
48,924
495,978
460,658
35,319
2,388,560
31a
31b
32
30
34-35
33+35
33
35
36
37
38
39
40
42
43
44
45
46
48-49
47+49
47
49
50
50a
50b
51
215
SMBCCapital Ratio InformationSMFG 2013
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
—
—
21,046
125,000
(I)
(J)
(K)
74,848
74,848
74,848
2,313,712
9,386,465
193,481
(15,881)
58,467
88,191
45,877
(L)
55,725,255
11.26%
12.69%
16.84%
640,003
434,850
—
420,075
10,501
21,284
48,924
280,447
1,114,071
123,785
1,831,075
203,452
(Millions of yen)
Year ended March 31, 2013
4,458,020
52
53
54
55
57
58
59
60
61
62
63
72
73
74
75
76
77
78
79
82
83
84
85
Items
Tier 2 capital: regulatory adjustments
Investments in own Tier 2 instruments
Reciprocal cross-holdings in Tier 2 instruments
Non-significant Investments in the Tier 2 capital of Other Financial Institutions, net of eligible
short positions (amount above the 10% threshold)
Significant investments in the Tier 2 capital of Other Financial Institutions (net of eligible short
positions)
Total of items included in Tier 2 capital: regulatory adjustments subject to transitional
arrangements
of which: Tier 2 and deductions under Basel 2
Tier 2 capital: regulatory adjustments
Tier 2 capital (T2)
Tier 2 capital (T2) ((H)-(I))
Total capital (TC = T1 + T2)
Total capital (TC = T1 + T2) ((G) + (J))
Risk weighted assets
Total of items included in risk weighted assets subject to transitional arrangements
of which: intangible assets other than mortgage servicing rights
of which: Non-significant Investments in the capital of Other Financial Institutions, net of
eligible short positions (amount above the 10% threshold)
of which: significant investments in Additional Tier 1 capital of Other Financial Institutions
(net of eligible short positions)
of which: significant investments in Tier 2 capital of Other Financial Institutions (net of
eligible short positions)
Risk weighted assets
Capital ratio (consolidated)
Common Equity Tier 1 risk-weighted capital ratio (consolidated) ((C)/(L))
Tier 1 risk-weighted capital ratio (consolidated) ((G)/(L))
Total risk-weighted capital ratio (consolidated) ((K)/(L))
Regulatory adjustments
Non-significant Investments in the capital of Other Financial Institutions that are below the
thresholds for deduction (before risk weighting)
Significant investments in the common stock of Other Financial Institutions that are below the
thresholds for deduction (before risk weighting)
Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)
Deferred tax assets arising from temporary differences that are below the thresholds for
deduction (before risk weighting)
Provisions included in Tier 2 capital: instruments and provisions
Provisions (general reserve for possible loan losses)
Cap on inclusion of provisions (general reserve for possible loan losses)
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal
ratings-based approach (prior to application of cap)
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
Capital instruments subject to transitional arrangements
Current cap on Additional Tier 1 instruments subject to transitional arrangements
Amount excluded from Additional Tier 1 due to cap (excess over cap after redemptions and
maturities)
Current cap on Tier 2 instruments subject to transitional arrangements
Amount excluded from Tier 2 due to cap (excess over cap after redemptions and maturities)
Items
Required capital ((L) ✕ 8%)
216
SMBCCapital Ratio InformationSMFG 2013
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2013)
217
SMBCCapital Ratio InformationSMFG 2013 218
SMBCCapital Ratio InformationSMFG 2013 219
SMBCCapital Ratio InformationSMFG 2013 220
SMBCCapital Ratio InformationSMFG 2013 Capital Ratio Information (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
■ Capital Structure Information (Nonconsolidated Capital Ratio (International Standard))
March 31
Tier 1 capital:
Tier 2 capital:
Deductions:
Total qualifying capital:
Risk-weighted assets:
Tier 1 risk-weighted capital ratio:
Total risk-weighted capital ratio:
Required capital:
Capital stock ....................................................................................................
Capital reserve .................................................................................................
Other capital surplus ........................................................................................
Other retained earnings ....................................................................................
Others ...............................................................................................................
Treasury stock ..................................................................................................
Cash dividends to be paid ...............................................................................
Gain on sale on securitization transactions......................................................
Amount equivalent to 50% of expected losses in excess of reserve ..............
Total Tier 1 capital (A) .......................................................................................
Unrealized gains on other securities after 55% discount.................................
Land revaluation excess after 55% discount ...................................................
Subordinated debt ...........................................................................................
Total Tier 2 capital ............................................................................................
Tier 2 capital included as qualifying capital (B) ................................................
(C) .....................................................................................................................
(D) = (A) + (B) – (C) ............................................................................................
On-balance sheet items ...................................................................................
Off-balance sheet items ...................................................................................
Market risk ........................................................................................................
Operational risk ................................................................................................
Total risk-weighted assets (E) ...........................................................................
(A) / (E) ✕ 100 ....................................................................................................
(D) / (E) ✕ 100 ...................................................................................................
(E) ✕ 8% ...........................................................................................................
Millions of yen
2012
¥ 1,770,996
1,771,043
710,229
1,257,377
1,198,808
(210,003)
(24,330)
(38,103)
(34,359)
6,401,659
172,669
29,327
2,361,431
2,563,429
2,563,429
305,528
¥ 8,659,560
¥30,526,896
5,825,932
592,046
2,574,143
¥39,519,018
16.19%
21.91%
¥ 3,161,521
221
SMBCCapital Ratio InformationSMFG 2013 (Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
1a+2-1c-26
1a
2
1c
26
1b
3
6
8+9
8
9
10
11
12
13
14
15
16
17
18
19+20+21
19
20
21
22
23
24
25
27
28
29
788,911
107,700
—
107,700
847
25,437
34,635
39,081
—
140,632
—
—
—
—
—
—
—
—
—
—
—
5,712,886
4,042,266
1,722,256
—
51,636
—
—
—
—
(A)
5,712,886
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5,712,886
Items
Common Equity Tier 1 capital: instruments and reserves
Directly issued qualifying common share capital plus related capital surplus and retained
earnings
of which: capital and capital surplus
of which: retained earnings
of which: treasury stock
of which: cash dividends to be paid
of which: other than the above
Stock acquisition rights to common shares
Valuation and translation adjustment and other disclosed reserves
Total of items included in Common Equity Tier 1 capital: instruments and reserves subject to
transitional arrangements
Common Equity Tier 1 capital: instruments and reserves
Common Equity Tier 1 capital: regulatory adjustments
Total intangible assets (excluding those relating to mortgage servicing rights)
of which: goodwill (including those equivalent)
of which: other intangible assets other than goodwill and mortgage servicing rights
Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability)
Net deferred gains on hedges
Shortfall of eligible provisions to expected losses
Gain on sale on securitization transactions
Gains and losses due to changes in own credit risk on fair valued liabilities
Prepaid pension cost
Investments in own shares (excluding those reported in the Net assets section)
Reciprocal cross-holdings in common equity
Investments in the capital of banking, financial and insurance entities that are outside the
scope of regulatory consolidation (“Other Financial Institutions”), net of eligible short positions,
where the bank does not own more than 10% of the issued share capital (“Non-significant
Investment”) (amount above the 10% threshold)
Amount exceeding the 10% threshold on specified items
of which: significant investments in the common stock of Other Financial Institutions, net of
eligible short positions
of which: mortgage servicing rights
of which: deferred tax assets arising from temporary differences (net of related tax liability)
Amount exceeding the 15% threshold on specified items
of which: significant investments in the common stock of Other Financial Institutions, net of
eligible short positions
of which: mortgage servicing rights
of which: deferred tax assets arising from temporary differences (net of related tax liability)
Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional Tier 1
and Tier 2 to cover deductions
Common Equity Tier 1 capital: regulatory adjustments
Common Equity Tier 1 capital (CET1)
Common Equity Tier 1 capital (CET1) ((A)-(B))
(B)
(C)
222
SMBCCapital Ratio InformationSMFG 2013
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
1,113,621
(1,461)
(1,461)
1,112,160
—
—
—
—
56,398
39,081
17,317
—
56,398
1,055,761
—
—
—
159,230
Items
Additional Tier 1 capital: instruments
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as equity under applicable accounting standards and the breakdown
Stock acquisition rights to Additional Tier 1 instruments
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as liabilities under applicable accounting standards
Qualifying Additional Tier 1 instruments plus related capital surplus issued by special purpose
vehicles and other equivalent entities
Eligible Tier 1 capital instruments subject to transitional arrangements included in Additional
Tier 1 capital: instruments
Total of items included in Additional Tier 1 capital: items subject to transitional arrangements
of which: foreign currency translation adjustments
Additional Tier 1 capital: instruments
Additional Tier 1 capital: regulatory adjustments
Investments in own Additional Tier 1 instruments
Reciprocal cross-holdings in Additional Tier 1 instruments
Non-significant Investments in the Additional Tier 1 capital of Other Financial Institutions, net of
eligible short positions (amount above 10% threshold)
Significant investments in the Additional Tier 1 capital of Other Financial Institutions (net of
eligible short positions)
Total of items included in Additional Tier 1 capital: regulatory adjustments subject to transitional
arrangements
(D)
of which: gain on sale on securitization transactions
of which: amount equivalent to 50% of shortfall of eligible provisions to expected losses
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover
deductions
Additional Tier 1 capital: regulatory adjustments
Additional Tier 1 capital (AT1)
Additional Tier 1 capital ((D)-(E))
Tier 1 capital (T1 = CET1 + AT1)
Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))
Tier 2 capital: instruments and provisions
Directly issued qualifying Tier 2 instruments plus related capital surplus of which: classified as
equity under applicable accounting standards and its breakdown
Stock acquisition rights to Tier 2 instruments
Directly issued qualifying Tier 2 instruments plus related capital surplus of which: classified as
liabilities under applicable accounting standards
Tier 2 instruments plus related capital surplus issued by special purpose vehicles and other
equivalent entities
Eligible Tier 2 capital instruments subject to transitional arrangements included in Tier 2:
instruments and provisions
Total of general reserve for possible loan losses and eligible provisions included in Tier 2
of which: general reserve for possible loan losses
of which: eligible provisions
Total of items included in Tier 2 capital: instruments and provisions subject to transitional
arrangements
of which: unrealized gains on other securities after 55% discount
of which: land revaluation excess after 55% discount
Tier 2 capital: instruments and provisions
(H)
(E)
(F)
(G)
6,768,647
—
—
—
—
1,815,516
—
—
—
482,672
453,422
29,250
2,298,189
31a
31b
32
30
33+35
36
37
38
39
40
42
43
44
45
46
47+49
50
50a
50b
51
223
SMBCCapital Ratio InformationSMFG 2013
Items
Tier 2 capital: regulatory adjustments
Investments in own Tier 2 instruments
Reciprocal cross-holdings in Tier 2 instruments
Non-significant Investments in the Tier 2 capital of Other Financial Institutions, net of eligible
short positions (amount above the 10% threshold)
Significant investments in the Tier 2 capital of Other Financial Institutions (net of eligible short
positions)
Total of items included in Tier 2 capital: regulatory adjustments subject to transitional
arrangements
of which: Tier 2 and deductions under Basel 2
Tier 2 capital: regulatory adjustments
Tier 2 capital (T2)
Tier 2 capital (T2) ((H)-(I))
Total capital (TC = T1 + T2)
Total capital (TC = T1 + T2) ((G) + (J))
Risk weighted assets
Total of items included in risk weighted assets subject to transitional arrangements
of which: intangible assets other than mortgage servicing rights
of which: significant investments in Additional Tier 1 capital of Other Financial Institutions
(net of eligible short positions)
of which: significant investments in Tier 2 capital of Other Financial Institutions (net of
eligible short positions)
Risk weighted assets
Capital ratio (consolidated)
Common Equity Tier 1 risk-weighted capital ratio (consolidated) ((C)/(L))
Tier 1 risk-weighted capital ratio (consolidated) ((G)/(L))
Total risk-weighted capital ratio (consolidated) ((K)/(L))
Regulatory adjustments
Non-significant Investments in the capital of Other Financial Institutions that are below the
thresholds for deduction (before risk weighting)
Significant investments in the common stock of Other Financial Institutions that are below the
thresholds for deduction (before risk weighting)
Mortgage servicing rights that are below the thresholds for deduction (before risk weighting)
Deferred tax assets arising from temporary differences that are below the thresholds for
deduction (before risk weighting)
Provisions included in Tier 2 capital: instruments and provisions
Provisions (general reserve for possible loan losses)
Cap on inclusion of provisions (general reserve for possible loan losses)
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal
ratings-based approach (prior to application of cap)
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
Capital instruments subject to transitional arrangements
Current cap on Additional Tier 1 instruments subject to transitional arrangements
Amount excluded from Additional Tier 1 due to cap (excess over cap after redemptions and
maturities)
Current cap on Tier 2 instruments subject to transitional arrangements
Amount excluded from Tier 2 due to cap (excess over cap after redemptions and maturities)
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
—
—
—
125,000
(I)
(J)
(K)
17,317
17,317
17,317
2,280,871
9,049,519
437,568
9,594
368,863
45,877
(L)
48,594,764
11.75%
13.92%
18.62%
603,168
358,161
—
283,002
—
2,593
—
255,975
1,113,621
123,735
1,815,516
201,724
52
53
54
55
57
58
59
60
61
62
63
72
73
74
75
76
77
78
79
82
83
84
85
Items
Required capital ((L) ✕ 8%)
(Millions of yen)
Year ended March 31, 2013
3,887,581
224
SMBCCapital Ratio InformationSMFG 2013
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2013)
225
SMBCCapital Ratio InformationSMFG 2013 226
SMBCCapital Ratio InformationSMFG 2013 227
SMBCCapital Ratio InformationSMFG 2013 228
SMBCCapital Ratio InformationSMFG 2013 229
SMBCCapital Ratio InformationSMFG 2013 Glossary
ABL
Abbreviation for Asset Based Lending of having movable assets as col-
lateral such as accounts receivable and/or inventory.
Advanced Measurement Approach (AMA)
Based on the operational risk measurement methods used in the inter-
nal management of financial institutions, this is a method for obtaining
the operational risk equivalent amount by calculating the maximum
amount of operational risk loss expected over a period of one year, with
a one-sided confidence interval of 99.9%.
Banking
Market operations which gain profits by controlling interest rates and
term period for assets (funds, bonds, etc.) and liabilities (deposits, etc.).
Basic Indicator Approach (BIA)
A calculation approach in which an average value for the most recent
three years derived by multiplying gross profit for the financial institution
as a whole by certain level (15%) is deemed to be the operational risk
equivalent amount.
CCF
Abbreviation for Credit Conversion Factor
Ratio required for converting off-balance sheet items such as guarantees
or derivatives into on-balance sheet credit exposure equivalents.
CDS
Abbreviation for Credit Default Swap
Derivative transactions which transfer the credit risk.
Calculation of credit risk-weighted assets under Article 145 of the
Notification
Method used for calculating the credit risk-weighted assets for the fund
exposure, etc. There is a method of making the total credit risk-weighted
asset of individual underlying asset of funds, etc. as the relevant expo-
sure of the credit risk-weighted asset; or a method of applying the risk
weight determined based on the formation of underlying assets to the
relevant exposure.
Capital adequacy ratio notification (“the Notification”)
Pursuant to the Basel Capital Accord, it is used to officially notify the
public of decisions made by the Financial Services Agency on financial
regulations.
Credit Risk Mitigation (CRM) Techniques
Method of reducing credit risk by guarantees, collateral and purchase of
credit derivatives, etc.
Credit risk-weighted assets
Total assets (lending exposures, including credit equivalent amount of
off-balance sheet transactions, etc.) which is reevaluated according to
the level of credit risk.
The Internal Ratings-Based (IRB) Approach
A method of calculating the risk asset by applying PD (Probability of
Default) estimated internally by financial institution which conducts
sophisticated risk management. There are two methods to calculate
exposures to corporate client, etc.: the Advanced Internal Ratings-
Based (AIRB) Approach and the Foundation Internal Ratings-Based
(FIRB) Approach. The former uses self-estimated LGD and EAD values,
while the latter uses LGD and EAD values designated by the authorities.
LGD
Abbreviation for Loss Given Default
Percentage of loss assumed in the event of default by obligor; ratio of
uncollectible amount of the exposure owned in the event of default.
Market-based approach
Method of calculating the risk assets of equity exposures, etc., by using
the simple risk weight method or internal model method.
Market risk equivalent amount
Pursuant to the Basel Capital Accord capital adequacy regulations, the
required capital amount imposed on the market-related risk calculated
for the four risk categories of mainly the trading book: interest rates,
stocks, foreign exchange and commodities.
Object finance
For providing credit for purchasing ships or aircrafts, the only source of
repayments for the financing should be profits generated from the said
tangible assets; and the said tangible assets serve as collaterals, and
having an appreciable extent of control over the said tangible assets and
profits generated from the said tangible assets.
Operational risk equivalent amount
Operational risk capital requirements under the Basel Capital Accord
capital adequacy regulations.
Originator
The term “originator” is used in the case that SMFG is directly or indi-
rectly involved in the formation of underlying assets for securitization
transactions when SMFG has the securitization exposure; or the cases
of providing the back-up line for ABCP issued by the securitization
conduit for the purpose of obtaining exposure from the third party, or
providing ABL to the securitization conduit (as sponsor).
PD
Abbreviation for Probability of Default
Probability of becoming default by obligor during one year.
Phased rollout
Under the Basel Capital Accord (credit risk, operational risk), it is a tran-
sition made by certain group companies planning to apply the Internal
Ratings-Based Approach or the Advanced Measurement Approach after
the implementation of such methods on consolidated-basis.
Current exposure method
One of the methods for calculating the credit exposure equivalents of
derivative transactions, etc. Method of calculating the equivalents by
adding the amount (multiplying the notional amount by certain rate, and
equivalent to the future exposure fluctuation amount) to the mark-to-
market replacement cost calculated by evaluating the market price of
the transaction.
Project finance
Out of credit provided for specified businesses such as electric power
plants and transportation infrastructure, the only source of repayments
is profits generated from the said businesses, and the collateral is tan-
gible assets of the said businesses, and having an appreciable extent of
control over the said tangible assets and profits generated from the said
tangible assets.
EL
Abbreviation for Expected Loss
Average loss expected to occur over the coming one year.
Historical simulation method
Method of simulating future fluctuations without the use of random num-
bers, by using historical data for risk factors.
Internal models method
One of the methods of market-based approach using the VaR model
to calculate the loss for shares held by the bank applying the Internal
Ratings-Based Approach, and dividing such loss amount by 8% to
obtain the credit risk-weighted asset of the equity exposure.
Qualifying Revolving Retail Exposures (QRRE)
Exposure which may fluctuate up to the upper limit set forth by an
agreement according to the individual’s voluntary decision, such as card
loan and credit card, etc., and the upper limit of the exposure without
any collateral is 10 million yen or less.
Resecuritization transaction
Out of securitization transactions, it is a transaction with securitiza-
tion exposure for part of or entire underlying assets. However, in the
case that all of underlying assets is the single securitization exposure
and the transaction’s risk characteristics are substantively unchanged
prior to or after the securitization, the transaction is excluded from the
resecuritization transactions.
230
SMFGCapital Ratio InformationSMFG 2013 Risk capital
The amount of required capital, which is statistically calculated from
the historical market fluctuations, default rates, etc., to cover an unex-
pected loss arising from risks of business operations. It differs from the
minimum regulatory capital requirements, and it is being used in the risk
management framework voluntarily developed by financial institutions for
the purpose of internal management.
Risk weight
Indicator which indicates the extent of credit risk determined by the
types of assets (claims) owned. Risk weight becomes higher for assets
with high risk of default.
Securitization transaction
It is a transaction which stratifies the credit risk for the underlying assets
into more than two exposures of senior/subordinated structure and has
the quality of transferring part of or entire exposure to the third party.
Servicer risk
The risk of becoming unable to claim for the collectives, in cases of
which bankruptcy of the supplier/servicer occurs prior to collecting
receivables, in securitization and purchased claims transactions.
Simple risk weight method
One of market-based approaches for calculating the risk-weighted asset
amount for the equity exposure, etc. by multiplying the listed shares and
unlisted shares with the risk weights of 300% and 400%, respectively.
Slotting criteria
For risk-weighted asset calculation under the Internal Ratings-Based
(IRB) Approach, it is a method of mapping the credit rating to the
risk-weight in 5 levels set forth by the Financial Services Agency for
Specialised Lending.
Specialized Lending (SL)
General term used for project finance, object finance, commodity
finance and lending for commercial real estate.
The Standardized Approach (SA)
Method of calculating risk-weighted assets by multiplying each obligor
classification (corporation, financial institution, country, retail, etc.) by the
risk-weight designated by the authorities.
Trading
Market operations which gain profits by taking advantage of fluctuations
of market prices in the short-term or price differences among markets.
Underlying assets
General term used for assets which serve as the source of payments for
principal and interest for securitization exposures, etc.
VaR
Abbreviation for Value at Risk
Forecasted maximum loss incurred by the relevant portfolio under
certain probability.
231
SMFGCapital Ratio InformationSMFG 2013 Compensation
Sumitomo Mitsui Financial Group (SMFG)
■ Compensation Framework of SMFG and Its Group Companies
1. Scope of Officers, Employees and Others
The scope of officers, employees and others whose compensation is subject to disclosure under the revised Cabinet Office on Disclosure of
Corporate Affairs, etc. and other ordinances are as described below.
(1) Scope of Officers
Officers subject to compensation disclosure are directors and corporate auditors of SMFG (excluding outside directors and corporate
auditors).
(2) Scope of Employees and Others
Employees and others subject to compensation disclosure are employees of SMFG and officers and employees of its major consolidated
subsidiaries who are highly compensated and have a material influence on the business management or the assets of SMFG and its major
consolidated subsidiaries.
a) Scope of major consolidated subsidiaries
A major consolidated subsidiary is a consolidated subsidiary of SMFG with total assets accounting for more than 2% of the total
consolidated assets of SMFG and has a material influence on the management of SMFG and its group companies. Specifically, they are
Sumitomo Mitsui Banking Corporation, SMBC Nikko Securities Inc., Kansai Urban Banking Corporation, The Minato Bank Ltd.
and overseas subsidiaries such as Sumitomo Mitsui Banking Corporation Europe Limited and Sumitomo Mitsui Banking Corporation
(China) Limited.
b) Scope of highly compensated persons
A highly compensated person is an individual whose compensation paid by SMFG or its major subsidiaries is equal to or more than
the base amount. The base amount of SMFG is set at ¥60 million which is based on the average amount of compensation paid to the
officers of SMFG and SMBC (excluding officers appointed or retired during the fiscal year in question) over the last three fiscal years
(hereinafter “executive compensation amount”) and is applied to all group companies. This is because many of the officers of SMFG
also serve as officers of SMBC, and their executive compensation amount is determined according to their contribution to the group
as a whole. With respect to lump-sum retirement payment, the executive compensation amount for the fiscal year in question is “(his/
her executive compensation amount – lump-sum retirement payment) + (lump-sum retirement payment/years of service)” and the
executive compensation amount calculated using this formula is compared to the base amount.
c) Material influence on the business management or assets of SMFG and its major consolidated subsidiaries
A person has a material influence on the business management or assets of SMFG and its major consolidated subsidiaries if his/her
regular transactions or regular matters managed by him/her have a substantial impact on the business management of SMFG and its
group companies, or losses incurred through such actions have a significant impact on the financial situation of SMFG and its group
companies. Specifically, persons having such influence are directors, corporate auditors and corporate officers of SMFG and its major
consolidated subsidiaries, both domestic and overseas.
2. Determination of Compensation
(1) For Officers
The compensation committee of SMFG, a majority of which is comprised of outside directors, deliberates on the compensation structure
and the amount and type of compensation paid to directors and corporate officers of SMFG and SMBC, independent from the influence
of corporate, consumer and other business units of SMBC. The committee deliberates on the amount and type of compensation paid
to directors and corporate officers within the maximum total amount of compensation approved at an ordinary general meeting of
shareholders. The amount and type of compensation paid to corporate auditors is determined through discussions among the corporate
auditors, within the maximum total amount of compensation approved at an ordinary general meeting of shareholders, in accordance
with the provisions of Article 387 (2) of the Companies Act.
(2) For Employees and Others
The amount and type of compensation paid to the employees of SMFG and SMBC and the officers and employees of major consolidated
subsidiaries are determined and paid according to the compensation policies established by the boards of directors of SMFG and its
major consolidated subsidiaries. Compensation systems based on the compensation policies are designed and documented by the HR
departments of respective companies, independent from the influence of corporate, consumer and other business units. The compensation
policies of major consolidated subsidiaries are regularly reported to the HR department of SMFG for review. The amount and type of
compensation for overseas officers and employees is determined and paid under the compensation system established by the relevant
office or subsidiary in accordance with local laws, regulations and employment practices.
(3) Total Amount of Compensation Paid to Compensation Committee Members and Number of Compensation Committee
Meetings Held
Compensation Committee (SMFG) ...............................................................................................
Compensation Committee (SMBC Nikko Securities Inc.) .............................................................
Number of Meetings Held
(April 1, 2012 to March 31, 2013)
1
1
Note: The total amount of compensation is not provided because the portion of the compensation paid to a committee member for services rendered as a committee member
cannot be calculated as the amount of compensation paid is based on the committee member’s position in the company.
232
SMFGSMFG 2013 ■ Assessment of Design and Operation of Compensation Structure
Compensation Policy
(1) For Officers
SMFG has designed its compensation system for officers based on its basic policy of becoming a globally competitive financial services
group with the highest trust of its clients and other stakeholders by enhancing its corporate value over the medium to long term.
Specifically, the compensation paid to officers consists of:
• base salary;
• bonuses; and
• stock options
The base salary is determined based on job responsibilities, business performance and other factors, and bonuses are determined based
on the consolidated business results of SMFG. Stock options are granted to officers (excluding outside directors and corporate auditors)
according to their positions, subject to an exercise period, to foster the creation of long-term corporate value.
The amount and type of compensation for each fiscal year, which is set within the maximum total amount of compensation approved
at an ordinary general meeting of shareholders, are examined by a third party for appropriateness; deliberated by the compensation
committee chaired by an outside director; and submitted to the board of directors for approval. In addition, the amount and type of
compensation to corporate auditors are determined through discussions among the corporate auditors, including outside corporate audi-
tors, within the maximum total amount of compensation approved at an ordinary general meeting of shareholders.
(2) For Employees and Others
SMFG and its major consolidated subsidiaries pay compensation to domestic employees and others consisting of:
• base salary;
• bonuses and other benefits
In order to link the business philosophy and strategy of the company to the roles and responsibilities of the employees and others, SMFG
and its major consolidated subsidiaries determine the amount and type of compensation taking into account their job responsibilities,
business performance and other factors. In addition, the HR departments of respective companies determine the amount and type
of compensation based on the overall company situation, including the business environment, business trends, and past payments of
compensation. The compensation policies for overseas employees and others have been established based on the domestic compensation
policies and taking into account local laws, regulations, employment practices and other relevant factors.
■ Consistency between Compensation Structure and Risk Management and Link between Compensation and
Performance
1. SMFG
SMFG determines the amount and type of compensation paid to officers within the maximum total amount of compensation approved at an
ordinary general meeting of shareholders. SMFG also sets a budget for paying compensation to employees taking into account the group’s
financial situation and other factors. Performance-based compensation accounts for a relatively small percentage of total compensation, and
SMFG has not adopted a compensation structure that could affect the risk management of the group.
2. Major Consolidated Subsidiaries
The amount and type of compensation for officers and employees of a major subsidiary are determined by comprehensively taking into
account the assessment of the subsidiary’s medium- and long-term earnings, and in the case of an overseas subsidiary, local laws, regulations
and employment practices, and a compensation structure that could affect the risk management of the group has not been adopted. In addi-
tion, expenses for employee retention are recorded for employees of certain major consolidated subsidiaries.
233
SMFGCompensationSMFG 2013
■ Type, Total Amount Paid, and Payment Method of Compensation for Officers, Employees and Others of SMFG and
Its Group Companies
Total Amount of Compensation Paid to Officers, Employees and Others (April 1, 2012 to March 31, 2013)
Millions of yen
Amount of compensation
Amount of fixed compensation
Amount of variable
compensation
Total
Total
Base salary
Stock
options
Other
benefits
Total
Bonuses
Retirement
allowance
Other
benefits
Number of
officers/
employees
and others
Officers (excluding outside
directors and corporate
auditors) ............................
Employees and others ........
12
71
970
6,030
789
2,537
703
2,422
84
102
2
12
173
3,405
173
3,405
7
—
—
87
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥186 million in deferred compensation accrued during the fiscal year (officers: ¥84 million; employees and others: ¥102
million).
3. The total amount of variable compensation includes ¥174 million in deferred compensation accrued during the fiscal year (officers: ¥1 million; employees: ¥174 million).
4. Stock options are classified as fixed compensation because the number of stock options granted depends on the individual’s position.
5. The exercise period of stock option is shown in the table below.
Under the stock option agreement, the exercise of stock options is deferred until the retirement date, regardless of the exercise period:
1st series of stock acquisition rights of SMFG ............................
August 13, 2010 to August 12, 2040
2nd series of stock acquisition rights of SMFG ..........................
August 16, 2011 to August 15, 2041
3rd series of stock acquisition rights of SMFG ...........................
August 15, 2012 to August 14, 2042
Exercise Period
6. Payment of the following compensation has been deferred:
1st series of stock acquisition rights of SMFG ............................
2nd series of stock acquisition rights of SMFG ..........................
79
129
—
—
Millions of yen
March 31, 2013
Payment during the fiscal year
■ Other Information Regarding Compensation Structures of SMFG and its Group Companies
Not applicable
234
SMFGCompensationSMFG 2013
Compensation
Sumitomo Mitsui Banking Corporation (SMBC) and Its Group Companies
■ Compensation Framework of SMBC Group
1. Scope of Officers and Employees
The scope of officers, employees and others whose compensation is subject to disclosure under the revised Cabinet Office on Disclosure of
Corporate Affairs, etc. and other ordinances are as described below.
(1) Scope of Officers
Officers subject to compensation disclosure are directors and corporate auditors SMBC (excluding outside directors and corporate
auditors).
(2) Scope of Employees and Others
Employees and others subject to compensation disclosure are employees of SMBC and officers and employees of its major consolidated
subsidiaries who are highly compensated and have a material influence on the business management or the assets of SMBC and its major
consolidated subsidiaries.
a) Scope of major consolidated subsidiaries
A major consolidated subsidiary is a consolidated subsidiary of SMBC with total assets accounting for more than 2% of the total
consolidated assets of SMBC and has a material influence on the management of SMBC and its group companies. Specifically, they are
SMBC Nikko Securities Inc., Kansai Urban Banking Corporation, The Minato Bank Ltd. and overseas subsidiaries such as Sumitomo
Mitsui Banking Corporation Europe Limited and Sumitomo Mitsui Banking Corporation (China) Limited.
b) Scope of highly compensated persons
A highly compensated person is an individual whose compensation paid by SMBC or its major subsidiaries is equal to or more than
the base amount. The base amount of SMBC is set at ¥60 million which is based on the average amount of compensation paid to the
officers of SMFG and SMBC (excluding officers appointed or retired during the fiscal year in question) over the last three fiscal years
(hereinafter “executive compensation amount”) and is applied to all group companies. This is because many of the officers of SMFG
also serve as officers of SMBC, and their executive compensation amount is determined according to their contribution to the group
as a whole. With respect to lump-sum retirement payment, the executive compensation amount for the fiscal year in question is “(his/
her executive compensation amount – lump-sum retirement payment) + (lump-sum retirement payment/years of service)” and the
executive compensation amount calculated using this formula is compared to the base amount.
c) Material influence on the business management or assets of SMBC and its major consolidated subsidiaries
A person has a material influence on the business management or assets of SMBC and its major consolidated subsidiaries if his/her
regular transactions or regular matters managed by him/her have a substantial impact on the business management of SMBC and its
group companies, or losses incurred through such actions have a significant impact on the financial situation of SMBC and its group
companies. Specifically, persons having such influence are directors, corporate auditors and corporate officers of SMBC and its major
consolidated subsidiaries, both domestic and overseas.
2. Determination of Compensation
(1) For Officers
The compensation committee of SMFG, a majority of which is comprised of outside directors, deliberates on the compensation structure
and the amount and type of compensation paid to directors and corporate officers of SMFG and SMBC, independent from the influence
of corporate, consumer and other business units of SMBC. The committee deliberates on the amount and type of compensation paid
to directors and corporate officers within the maximum total amount of compensation approved at an ordinary general meeting of
shareholders. The amount and type of compensation paid to corporate auditors is determined through discussions among the corporate
auditors, within the maximum total amount of compensation approved at an ordinary general meeting of shareholders, in accordance
with the provisions of Article 387(2) of the Companies Act.
(2) For Employees and Others
The amount and type of compensation paid to the employees of SMBC and SMBC and the officers and employees of major consolidated
subsidiaries are determined and paid according to the compensation policies established by the boards of directors of SMBC and its
major consolidated subsidiaries. Compensation systems based on the compensation policies are designed and documented by the HR
departments of respective companies, independent from the influence of corporate, consumer and other business units. The compensation
policies of major consolidated subsidiaries are regularly reported to the HR department of SMBC for review. The amount and type of
compensation for overseas officers and employees is determined and paid under the compensation system established by the relevant
office or subsidiary in accordance with local laws, regulations and employment practices.
(3) Total Amount of Compensation Paid to Compensation Committee Members and Number of Compensation Committee
Meetings Held
Compensation Committee (SMFG) ...............................................................................................
Compensation Committee (SMBC Nikko Securities Inc.) .............................................................
Number of Meetings Held
(April 1, 2012 to March 31, 2013)
1
1
Note: The total amount of compensation is not provided because the portion of the compensation paid to a committee member for services rendered as a committee member
cannot be calculated as the amount of compensation paid is based on the committee member’s position in the company.
235
SMBCSMFG 2013 ■ Assessment of Design and Operation of Compensation Structure
Compensation Policy
(1) For Officers
SMBC has designed its compensation system for officers based on the basic policy of SMFG – become a globally competitive financial
services group with the highest trust of its clients and other stakeholders by enhancing its corporate value over the medium to long
term. Specifically, the compensation paid to officers consists of:
• base salary;
• bonuses; and
• stock options
The base salary is determined based on job responsibilities, business performance and other factors, and bonuses are determined based
on the consolidated business results of SMFG. Stock options are granted to officers (excluding outside directors and corporate auditors)
according to their positions, subject to an exercise period, to foster the creation of long-term corporate value.
The amount and type of compensation for each fiscal year, which is set within the maximum total amount of compensation approved
at an ordinary general meeting of shareholders, are examined by a third party for appropriateness; deliberated by the compensation com-
mittee of SMFG, chaired by an outside director; and submitted to the board of directors for approval. In addition, the amount and type
of compensation to corporate auditors are determined through discussions among the corporate auditors, including outside corporate
auditors, within the maximum total amount of compensation approved at an ordinary general meeting of shareholders.
(2) For Employees and Others
SMBC and its major consolidated subsidiaries pay compensation to domestic employees and others consisting of:
• base salary;
• bonuses and other benefits
In order to link the business philosophy and strategy of the company to the roles and responsibilities of the employees and others, SMBC
and its major consolidated subsidiaries determine the amount and type of compensation taking into account their job responsibilities,
business performance and other factors. In addition, the HR departments of respective companies determine the amount and type
of compensation based on the overall company situation, including the business environment, business trends, and past payments of
compensation. The compensation policies for overseas employees and others have been established based on the domestic compensation
policies and taking into account local laws, regulations, employment practices and other relevant factors.
■ Consistency between Compensation Structure and Risk Management and Link between Compensation and
Performance
1. SMBC
SMBC determines the amount and type of compensation paid to officers within the maximum total amount of compensation approved at an
ordinary general meeting of shareholders. SMBC also sets a budget for paying compensation to employees taking into account the group’s
financial situation and other factors. Performance-based compensation accounts for a relatively small percentage of total compensation, and
SMBC has not adopted a compensation structure that could affect the risk management of the group. In addition, expenses for employee
retention are recorded for certain employees.
2. Major Consolidated Subsidiaries
The amount and type of compensation for officers and employees of a major subsidiary are determined by comprehensively taking into
account the assessment of the subsidiary’s medium- and long-term earnings, and in the case of an overseas subsidiary, local laws, regulations
and employment practices, and a compensation structure that could affect the risk management of the group has not been adopted. In addi-
tion, expenses for employee retention are recorded for employees of certain major consolidated subsidiaries.
236
SMBCSMFG 2013Compensation
■ Type, Total Amount Paid, and Payment Method of Compensation for Officers, Employees and Others of SMBC and
Its Group Companies
1. Total Amount of Compensation Paid to Officers, Employees and Others (SMBC consolidated, April 1, 2012 to March 31, 2013)
Millions of yen
Amount of compensation
Amount of fixed compensation
Amount of variable
compensation
Total
Total
Base salary
Stock
options
Other
benefits
Total
Bonuses
Retirement
allowance
Other
benefits
Number of
officers/
employees
and others
Officers (excluding outside
directors and corporate
auditors) ............................
Employees and others ........
19
63
1,474
5,359
1,194
2,001
1,036
1,959
152
31
5
9
272
3,270
272
3,270
7
—
—
87
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥183 million in deferred compensation accrued during the fiscal year (officers: ¥152 million; employees and others: ¥31
million).
3. The total amount of variable compensation includes ¥174 million in deferred compensation accrued during the fiscal year (officers: ¥1 million; employees and others: ¥174
million).
4. Stock options are classified as fixed compensation because the number of stock options granted depends on the individual’s position.
5. The exercise period of stock option is shown in the table below.
Under the stock option agreement, the exercise of stock options is deferred until the retirement date, regardless of the exercise period:
1st series of stock acquisition rights of SMFG ............................
August 13, 2010 to August 12, 2040
2nd series of stock acquisition rights of SMFG ..........................
August 16, 2011 to August 15, 2041
3rd series of stock acquisition rights of SMFG ...........................
August 15, 2012 to August 14, 2042
Exercise Period
6. Payment of the following compensation has been deferred:
Millions of yen
March 31, 2013
Payment during the fiscal year
1st series of stock acquisition rights of SMFG ............................
2nd series of stock acquisition rights of SMFG ..........................
65
103
—
—
2. Total Amount of Compensation Paid to Officers, Employees and Others (SMBC non-consolidated, April 1, 2012 to March 31,
2013)
Millions of yen
Amount of compensation
Amount of fixed compensation
Amount of variable
compensation
Total
Total
Base salary
Stock
options
Other
benefits
Total
Bonuses
Retirement
allowance
Other
benefits
Number of
officers/
employees
and others
Officers (excluding outside
directors and corporate
auditors) ............................
Employees and others ........
19
22
1,474
1,999
1,194
806
1,036
771
152
31
5
3
272
1,126
272
1,126
7
—
—
66
Notes: 1. The total amount of fixed compensation includes ¥183 million in deferred compensation accrued during the fiscal year (officers: ¥152 million; employees and others: ¥31
million).
2. The total amount of variable compensation includes ¥174 million in deferred compensation accrued during the fiscal year (officers: ¥1 million; employees and others: ¥174
million).
3. Stock options are classified as fixed compensation because the number of stock options granted depends on the individual’s position.
4. The exercise period of stock option is shown in the table below.
Under the stock option agreement, the exercise of stock options is deferred until the retirement date, regardless of the exercise period:
1st series of stock acquisition rights of SMFG ............................
August 13, 2010 to August 12, 2040
2nd series of stock acquisition rights of SMFG ..........................
August 16, 2011 to August 15, 2041
3rd series of stock acquisition rights of SMFG ...........................
August 15, 2012 to August 14, 2042
Exercise Period
5. Payment of the following compensation has been deferred:
Millions of yen
March 31, 2013
Payment during the fiscal year
1st series of stock acquisition rights of SMFG ............................
2nd series of stock acquisition rights of SMFG ..........................
65
103
—
—
■ Other Information Regarding Compensation Structures of SMFG and its Group Companies
Not applicable
237
SMBCSMFG 2013Compensation
238
SMFG 2013 Corporate Data
Sumitomo Mitsui Financial Group, Inc.
■ Board of Directors, Corporate Auditors, and Executive Officers (as of June 30, 2013)
BOARD OF DIRECTORS
Masayuki Oku
Chairman of the Board
Koichi Miyata
President
Takeshi Kunibe
Director
Ken Kubo
Director
Consumer Business Planning Dept., Consumer Finance &
Transaction Business Dept., President of SMFG Card & Credit, Inc.
Yujiro Ito
Director
General Affairs Dept., Human Resources Dept.
Masahiro Fuchizaki
Director
IT Planning Dept., Director of The Japan Research Institute, Limited
Nobuaki Kurumatani
Director
Public Relations Dept., Corporate Planning Dept.,
Financial Accounting Dept., Subsidiaries & Affiliates Dept.
Manabu Narita
Director
Audit Dept.
Kozo Ogino
Director
Corporate Risk Management Dept.
Shigeru Iwamoto
Director (outside)
■ SMFG Organization (as of June 30, 2013)
Yoshinori Yokoyama
Director (outside)
Kuniaki Nomura
Director (outside)
CORPORATE AUDITORS
Koichi Minami
Corporate Auditor
Yoji Yamaguchi
Corporate Auditor
Shin Kawaguchi
Corporate Auditor
Ikuo Uno
Corporate Auditor (outside)
Satoshi Ito
Corporate Auditor (outside)
Rokuro Tsuruta
Corporate Auditor (outside)
EXECUTIVE OFFICERS
Jun Ohta
Managing Director
Transaction Business Planning Dept.
Yasuyuki Kawasaki
Managing Director
Global Business Planning Dept.
Fumiaki Kurahara
Managing Director
Securities Business Dept.
Shareholders’
Meeting
Board of Directors
Auditing Committee
Risk Management Committee
Compensation Committee
Nominating Committee
Group Strategy
Committee
Management
Committee
Corporate Auditors/
Board of Corporate
Auditors
Office of Corporate Auditors
Public Relations Dept.
Corporate Planning Dept.
Investor Relations Dept.
Group CSR Dept.
Financial Accounting Dept.
IT Planning Dept.
Human Resources Dept.
General Affairs Dept.
Corporate Risk Management Dept.
Subsidiaries & Affiliates Dept.
Securities Business Dept.
Transaction Business Planning Dept.
Consumer Finance & Transaction Business Dept.
Consumer Business Planning Dept.
Global Business Planning Dept.
Audit Dept.
Group Business Management Dept.
239
SMFG 2013 Sumitomo Mitsui Banking Corporation
* Executive Officers
■ Board of Directors, Corporate Auditors, and Executive Officers (as of June 30, 2013)
BOARD OF DIRECTORS
Chairman of the Board
Teisuke Kitayama
President and CEO
Takeshi Kunibe*
Director
Koichi Miyata
Deputy Presidents
Ken Kubo*
Head of Consumer Banking Unit
Consumer Finance & Transaction Business Dept.
President of SMFG Card & Credit, Inc.
Yoshihiko Shimizu*
Head of Middle Market Banking Unit
Hiroshi Minoura*
Head of International Banking Unit
Senior Managing Directors
Yujiro Ito*
Human Resources Dept., Human Resources Development Dept.,
Quality Management Dept., General Affairs Dept., Legal Dept.,
Administrative Services Dept.
Shuichi Kageyama*
Located at Osaka
Seiichiro Takahashi*
Head of Treasury Unit
Masahiro Fuchizaki*
IT Planning Dept., Operations Planning Dept., Operations Support
Dept., Director of The Japan Research Institute, Limited
Hidetoshi Furukawa*
Head of Corporate Banking Unit
Nobuaki Kurumatani*
Public Relations Dept., Corporate Planning Dept., Financial
Accounting Dept., Subsidiaries & Affiliates Dept.
Masaki Tachibana*
Deputy Head of Middle Market Banking Unit, Corporate Banking Unit
(Planning Dept., Corporate Banking Unit & Middle Market Banking
Unit, Strategic Corporate Business Dept.)
Head of Private Advisory Division and Corporate Advisory Division
Directors (outside)
Shigeru Iwamoto
Yoshinori Yokoyama
Kuniaki Nomura
CORPORATE AUDITORS
Hiroki Yaze
Corporate Auditor
Makoto Hiura
Corporate Auditor
240
Ikuo Uno
Corporate Auditor (outside)
Satoshi Ito
Corporate Auditor (outside)
Rokuro Tsuruta
Corporate Auditor (outside)
Koichi Minami
Corporate Auditor
EXECUTIVE OFFICERS
Managing Directors
Hiroyuki Iwami
Head of Europe Division
CEO of Sumitomo Mitsui Banking Corporation Europe Limited
Atsuhiko Inoue
Osaka Corporate Banking Division (Osaka Corporate Banking Depts.
I, II, and III)
Toshiyuki Teramoto
Credit Administration Dept.
Deputy Head of Middle Market Banking Unit, Corporate Banking Unit
(Corporate Credit Dept.)
Corporate Research Dept.
Deputy Head of Investment Banking Unit (Trust Services Dept.)
Manabu Narita
Internal Audit Dept., Credit Review Dept.
Kozo Ogino
Risk Management Unit (Corporate Risk Management Dept., Credit &
Investment Planning Dept.)
Human Resources Dept., Human Resources Development Dept.
Chan Chi Keung, Chris
General Manager, Corporate Banking Dept., Greater China
Kazunori Okuyama
Deputy Head of International Banking Unit, Middle Market Banking
Unit, Corporate Banking Unit
Global Advisory Dept.
Chairman of Sumitomo Mitsui Banking Corporation (China) Limited
Hiroaki Hattori
Head of Kobe Middle Market Banking Division and Chushikoku
Middle Market Banking Division
Kiyoshi Miura
Deputy Head of Middle Market Banking Unit (in charge of West
Japan)
Hitoshi Ishii
Deputy Head of Middle Market Banking Unit (in charge of East Japan)
Head of Higashinihon Daini Middle Market Banking Division
Jun Ohta
Transaction Business Planning Dept.
Transaction Business Division
Public Relations Dept., Corporate Planning Dept., Financial
Accounting Dept., Subsidiaries & Affiliates Dept.
Yasuyuki Kawasaki
Deputy Head of International Banking Unit
Head of Emerging Markets Business Division
SMFG 2013
Fumiaki Kurahara
Head of Investment Banking Unit
Securities Business Dept.
Makoto Takashima
Head of The Americas Division
Hirobumi Koga
Deputy Head of Middle Market Banking Unit (in charge of East Japan)
Head of Higashinihon Daiichi Middle Market Banking Division
Seiji Sato
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts.
III, IV, V, and VIII)
Masayuki Shimura
Head of The Asia Pacific Division
Katsunori Tanizaki
General Manager, IT Planning Dept.
Takehisa Ikeda
Nagoya Corporate Banking Division (Nagoya Corporate Banking
Dept.)
Head of Nagoya Middle Market Banking Division
Yukihiko Onishi
General Manager, Corporate Planning Dept.
Gotaro Michihiro
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts.
I, II, VI, and VII)
Directors
Masahiro Nakagawa
Deputy Head of Middle Market Banking Unit (Credit Dept. I)
Takafumi Yamahiro
Head of Nishinihon Daiichi Middle Market Banking Division
Mitsuru Ono
Deputy Head of International Banking Unit (Credit Depts., Americas
Division and Europe Division, Asia Credit Dept., Credit Management
Dept.)
Takashi Matsushita
Head of Shinjuku Middle Market Banking Division and Saitama
Ikebukuro Middle Market Banking Division
Noboru Rachi
Head of Kyoto Hokuriku Middle Market Banking Division and General
Manager, Kyoto Corporate Business Office-I
Hiroyuki Okutani
Deputy Head of Consumer Banking Unit (in charge of West Japan)
Hajime Kunisaki
Deputy Head of Consumer Banking Unit (in charge of East Japan)
Hisanori Kokuga
President of Sumitomo Mitsui Banking Corporation (China) Limited
Koichi Noda
Deputy Head of Corporate Advisory Division
Shosuke Mori
General Manager, Planning Dept., International Banking Unit
Taneki Ono
Deputy Head of Investment Banking Unit
Corporate Planning Dept., Securities Business Dept.
Isao Kitatsuji
Deputy Head of Middle Market Banking Unit (Credit Dept. II)
Kentaro Senmatsu
Head of Shibuya Middle Market Banking Division and Yokohama
Middle Market Banking Division
Osamu Nakano
Head of Tokyo Toshin Middle Market Banking Division and
Higashinihon Kouiki Middle Market Banking Division
Tadaaki Kanbara
Deputy Head of Corporate Advisory Division
Takashi Inagaki
General Manager, Credit Dept. l, Middle Market Banking Unit
Masahiko Oshima
(Director without portfolio)
Naoki Ono
General Manager, Planning Dept., Corporate Banking Unit & Middle
Market Banking Unit
Hiroyasu Kitagawa
General Manager, Subsidiaries & Affiliates Dept.
Takashi Jokura
General Manager, Retail Business Dept., Consumer Banking Unit
Naoki Tamura
General Manager, Credit & Investment Planning Dept.
Hiroshi Fujikawa
General Manager, Osaka Corporate Banking Dept. l
Kimio Matsuura
General Manager, General Affairs Dept.
Toshikazu Yaku
General Manager, Human Resources Dept.
Ryohei Kaneko
General Manager, Operations Planning Dept.
Yoshio Morijiri
Head of Tokyo Higashi Middle Market Banking Division
Atsushi Oku
General Manager, Osaka-Chuo Block Consumer Business Office
Toshikazu Takeichi
Head of Nishinihon Daini Middle Market Banking Division
Yoshihiro Horikawa
General Manager, Corporate Risk Management Dept.
Mitsuhiro Akiyama
General Manager, Singapore Branch
Toshihiro Isshiki
General Manager, Consumer Finance & Transaction Business Dept.
Keiji Kakumoto
General Manager, Umeda Corporate Business Office-I
Atsushi Takada
General Manager, Himeji Corporate Business Office
Haruyuki Nagata
General Manager, Financial Accounting Dept.
Ryuji Nishisaki
General Manager, Planning Dept., Investment Banking Unit
Hitoshi Minami
General Manager, Tokyo Corporate Banking Dept. III
Hiroshi Munemasa
General Manager, Planning Dept., Treasury Unit
CHOW Ying Hoong
Deputy Head of Emerging Markets Business Division and Co-General
Manager, Planning Dept., Asia Pacific Division
241
SMFG 2013 ■ SMBC Organization (as of June 30, 2013)
Internal Audit Unit
Internal Audit Dept.
Credit Review Dept.
Planning Dept., Consumer Banking Unit
Block Consumer Business Office
Branch
Consumer
Banking Unit
Middle Market
Banking Unit
Corporate
Banking Unit
International
Banking Unit
Treasury Unit
Investment
Banking Unit
Corporate Staff Unit
Public Relations Dept.
Corporate Planning Dept.
Financial Research Dept.
CSR Dept.
Financial Accounting Dept.
Equity Portfolio Management Dept.
Subsidiaries & Affiliates Dept.
IT Planning Dept.
Consolidated Data Management Dept.
Human Resources Dept.
Training Institute
Counseling Dept.
Diversity and Inclusion Dept.
Human Resources Development Dept.
Quality Management Dept.
Customer Relations Dept.
Transaction Business Planning Dept.
Consumer Finance & Transaction Business Dept.
Securities Business Dept.
Risk Management Unit
Corporate Risk Management Dept.
Risk Management Systems Dept.
Credit & Investment Planning Dept.
Credit Portfolio Management Dept.
Compliance Unit
General Affairs Dept.
Financial Products Compliance Dept.
Financial Crime Prevention Dept.
International Compliance Dept.
Legal Dept.
Corporate Services Unit
Administrative Services Dept.
Secretariat
Corporate Real Estate Management Dept.
Operations Planning Dept.
Operations Support Dept.
Credit Administration Dept.
Credit Business Dept.
Shareholders’
Meeting
Board of
Directors
Management
Committee
Corporate Auditors/
Corporate Auditors/
Board of Corporate Auditors
Board of Corporate Auditors
Office of Corporate Auditors
242
Consumer Compliance Dept.
Next W-ing Project Dept.
Consumer Facilitating Financing Dept.
Retail Human Resources Dept.
Securities Business Collaboration Planning Dept.
Financial Consulting Dept.
Retail Business Dept.
Consumer Loan Dept.
Credit Dept., Consumer Banking Unit
Public & Financial Institutions Banking Dept.
Small and Medium Enterprises Marketing Dept.
Small Enterprises Credit Portfolio Administration Dept.
Credit Dept. I, Middle Market Banking Unit
Credit Dept. II, Middle Market Banking Unit
Planning Dept., Corporate Banking Unit &
Middle Market Banking Unit
Middle Market Facilitating Financing Dept.
South China Dept.
Corporate Business Strategy Planning Dept.
Strategic Corporate Business Dept.
Corporate Credit Dept.
Structured Finance Credit Dept.
Planning Dept., International Banking Unit
IT & Business Administration Planning Dept.
Asia Pacific Training Dept.
Global Business Strategy Dept.
Aviation Capital Dept.
Aviation Capital Dept.
Planning Dept., Americas Division
Credit Dept., Americas Division
Risk Management Dept., Americas Division
Compliance Dept., Americas Division
Planning Dept., Europe Division
Legal and Compliance Dept., Europe Division
Credit Dept., Europe Division
Risk Management Dept., Europe Division
Planning Dept., Asia Pacific Division
Asia Credit Dept., International Banking Unit
Emerging Markets Business Division
Credit Management Dept., International Banking Unit
Environment Analysis Dept., International Banking Unit
Planning Dept., Treasury Unit
Treasury Dept.
International Treasury Dept.
Trading Dept.
Treasury Marketing Dept.
Planning Dept., Investment Banking Unit
Syndication Dept.
Project & Export Finance Dept.
Growth Industry Cluster Dept.
Structured Finance Dept.
Shipping Finance Dept.
Global Securities Business Dept.
Financial Solution Dept.
Real Estate Finance Dept.
M&A Advisory Services Dept.
Merchant Banking Dept.
Financial Products Dept.
Securities Direct Sales Dept.
Trust Services Dept.
Trust Business Operations Dept.
Stock Execution Dept.
Investment Banking Dept., Asia
Financial Solution Dept., Asia
Middle Market Banking Division
Consumer Loan Promotion Office
Apartment House Loan Promotion Office
Loan Support Office
Private Banking Dept.
Direct Banking Dept.
Consumer Finance Promotion Office
Net Consumer Loan Promotion Office
Corporate Business Office
Business Promotion Office
Financial Development Office
Corporate Financial Consulting Office
Real Estate Corporate Business Office
Public Institutions Business Office
Business Support Office
Tokyo Corporate Banking Division
Corporate Banking Dept.
Osaka Corporate Banking Division
Nagoya Corporate Banking Division
Americas Division
Europe Division
Asia Pacific Division
Global Institutional Banking Dept.
Global Client Business Dept.
Global Corporate Investment Dept.
Global Trade Finance Dept.
Global Supply Chain Finance Dept.
Branches/Representative Offices
in North East Asia
Departments of Americas Division
Departments of Europe Division
Branches/Representative Offices
in Asia Pacific Division
Corporate Advisory Division
Advisory Dept. I
Advisory Dept. II
Advisory Dept. III
Coporate Research Dept.
Private Advisory Division
Private Advisory Business Dept.
Testamentary Trust Dept.
Corporate Employees Business Dept.
Defined Contribution Dept.
Transaction Business Division
Asset Finance Dept.
Transaction Banking Dept.
Global Transaction Banking Dept.
Global Advisory Dept.
Branch Service Office
Head /Main Service Office
Public Institutions Operations Office
SMFG 2013 Internal Audit Unit
Internal Audit Dept.
Credit Review Dept.
Corporate Staff Unit
Public Relations Dept.
Corporate Planning Dept.
Financial Research Dept.
CSR Dept.
Financial Accounting Dept.
Equity Portfolio Management Dept.
Subsidiaries & Affiliates Dept.
IT Planning Dept.
Consolidated Data Management Dept.
Human Resources Dept.
Training Institute
Counseling Dept.
Diversity and Inclusion Dept.
Human Resources Development Dept.
Quality Management Dept.
Customer Relations Dept.
Transaction Business Planning Dept.
Consumer Finance & Transaction Business Dept.
Securities Business Dept.
Risk Management Unit
Corporate Risk Management Dept.
Risk Management Systems Dept.
Credit & Investment Planning Dept.
Credit Portfolio Management Dept.
Compliance Unit
General Affairs Dept.
Financial Products Compliance Dept.
Financial Crime Prevention Dept.
International Compliance Dept.
Legal Dept.
Corporate Services Unit
Administrative Services Dept.
Secretariat
Corporate Real Estate Management Dept.
Operations Planning Dept.
Operations Support Dept.
Credit Administration Dept.
Credit Business Dept.
Consumer
Banking Unit
Middle Market
Banking Unit
Corporate
Banking Unit
International
Banking Unit
Treasury Unit
Investment
Banking Unit
Planning Dept., Consumer Banking Unit
Consumer Compliance Dept.
Next W-ing Project Dept.
Consumer Facilitating Financing Dept.
Retail Human Resources Dept.
Securities Business Collaboration Planning Dept.
Financial Consulting Dept.
Retail Business Dept.
Consumer Loan Dept.
Credit Dept., Consumer Banking Unit
Public & Financial Institutions Banking Dept.
Small and Medium Enterprises Marketing Dept.
Small Enterprises Credit Portfolio Administration Dept.
Credit Dept. I, Middle Market Banking Unit
Credit Dept. II, Middle Market Banking Unit
Planning Dept., Corporate Banking Unit &
Middle Market Banking Unit
Middle Market Facilitating Financing Dept.
South China Dept.
Corporate Business Strategy Planning Dept.
Strategic Corporate Business Dept.
Corporate Credit Dept.
Structured Finance Credit Dept.
Planning Dept., International Banking Unit
IT & Business Administration Planning Dept.
Asia Pacific Training Dept.
Global Business Strategy Dept.
Aviation Capital Dept.
Aviation Capital Dept.
Planning Dept., Americas Division
Credit Dept., Americas Division
Risk Management Dept., Americas Division
Compliance Dept., Americas Division
Planning Dept., Europe Division
Legal and Compliance Dept., Europe Division
Credit Dept., Europe Division
Risk Management Dept., Europe Division
Planning Dept., Asia Pacific Division
Asia Credit Dept., International Banking Unit
Emerging Markets Business Division
Credit Management Dept., International Banking Unit
Environment Analysis Dept., International Banking Unit
Planning Dept., Treasury Unit
Treasury Dept.
International Treasury Dept.
Trading Dept.
Treasury Marketing Dept.
Planning Dept., Investment Banking Unit
Syndication Dept.
Project & Export Finance Dept.
Growth Industry Cluster Dept.
Structured Finance Dept.
Shipping Finance Dept.
Global Securities Business Dept.
Financial Solution Dept.
Real Estate Finance Dept.
M&A Advisory Services Dept.
Merchant Banking Dept.
Financial Products Dept.
Securities Direct Sales Dept.
Trust Services Dept.
Trust Business Operations Dept.
Stock Execution Dept.
Investment Banking Dept., Asia
Financial Solution Dept., Asia
Block Consumer Business Office
Middle Market Banking Division
Branch
Consumer Loan Promotion Office
Apartment House Loan Promotion Office
Loan Support Office
Private Banking Dept.
Direct Banking Dept.
Consumer Finance Promotion Office
Net Consumer Loan Promotion Office
Corporate Business Office
Business Promotion Office
Financial Development Office
Corporate Financial Consulting Office
Real Estate Corporate Business Office
Public Institutions Business Office
Business Support Office
Tokyo Corporate Banking Division
Osaka Corporate Banking Division
Nagoya Corporate Banking Division
Corporate Banking Dept.
Americas Division
Europe Division
Asia Pacific Division
Global Institutional Banking Dept.
Global Client Business Dept.
Global Corporate Investment Dept.
Global Trade Finance Dept.
Global Supply Chain Finance Dept.
Branches/Representative Offices
in North East Asia
Departments of Americas Division
Departments of Europe Division
Branches/Representative Offices
in Asia Pacific Division
Corporate Advisory Division
Advisory Dept. I
Advisory Dept. II
Advisory Dept. III
Coporate Research Dept.
Private Advisory Division
Private Advisory Business Dept.
Testamentary Trust Dept.
Corporate Employees Business Dept.
Defined Contribution Dept.
Transaction Business Division
Asset Finance Dept.
Transaction Banking Dept.
Global Transaction Banking Dept.
Global Advisory Dept.
Branch Service Office
Head /Main Service Office
Public Institutions Operations Office
243
Shareholders’
Meeting
Board of
Directors
Management
Committee
Corporate Auditors/
Corporate Auditors/
Board of Corporate Auditors
Board of Corporate Auditors
Office of Corporate Auditors
SMFG 2013 Principal Subsidiaries and Affiliates (as of March 31, 2013)
All companies shown hereunder are consolidated subsidiaries or affiliates of Sumitomo Mitsui Financial Group, Inc.
Those printed in green ink are consolidated subsidiaries or affiliates of Sumitomo Mitsui Banking Corporation.
■ Principal Domestic Subsidiaries
Note: Figures in parentheses ( ) in the voting rights columns indicate voting rights held indirectly via subsidiaries and affiliates.
Company Name
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Finance and Leasing Company, Limited
SMBC Nikko Securities Inc.
SMBC Friend Securities Co., Ltd.
Sumitomo Mitsui Card Company, Limited
Cedyna Financial Corporation
SMBC Consumer Finance Co., Ltd.
The Japan Research Institute, Limited
SMFG Card & Credit, Inc.
SAKURA CARD CO., LTD.
SMM Auto Finance, Inc.
The Japan Net Bank, Limited
SMBC Loan Business Planning Co., Ltd.
SMBC Loan Adviser Co., Ltd.
SMBC Guarantee Co., Ltd.
SMBC Finance Service Co., Ltd.
SMBC Business Support Co., Ltd.*1
Financial Link Co., Ltd.*2
SMBC Venture Capital Co., Ltd.
SMBC Consulting Co., Ltd.
SMBC Servicer Co., Ltd.
SAKURA KCS Corporation
THE MINATO BANK, LTD.
Kansai Urban Banking Corporation
SMBC Staff Service Co., Ltd.
SMBC Learning Support Co., Ltd.
SMBC PERSONNEL SUPPORT CO., LTD.
SMBC Center Service Co., Ltd.
SMBC Delivery Service Co., Ltd.
SMBC Green Service Co., Ltd.
SMBC International Business Co., Ltd.
SMBC International Operations Co., Ltd.
SMBC Loan Business Service Co., Ltd.
SMBC Principal Finance Co., Ltd.
SMBC Market Service Co., Ltd.
SMBC Loan Administration and Operations Service Co., Ltd.
SMBC Property Research Service Co., Ltd.
Japan Pension Navigator Co., Ltd.
SMBC Electronic Monetary Claims Recording
Co., Ltd.
SMBC Barclays Wealth Services Co., Ltd.
Issued Capital
(Millions of Yen)
1,770,996
15,000
10,000
27,270
34,000
82,843
140,737
10,000
49,859
7,438
7,700
37,250
100,010
10
187,720
71,705
10
10
500
1,100
1,000
2,054
27,484
47,039
90
10
10
100
30
30
20
40
70
100
10
10
30
1,600
500
30
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
100
60
(100)
100
(65.99)
(100)
100
100
100
—
—
100
—
—
—
—
—
—
Jun. 6, 1996
Commercial banking
Feb. 4, 1963
Leasing
Jun. 15, 2009
Securities
Mar. 2, 1948
Securities
Dec. 26, 1967
Credit card services
Sep. 11, 1950
Credit card services
Mar. 20, 1962
Consumer loans
Nov. 1, 2002
System engineering, data processing,
management consulting, and economic research
Oct. 1, 2008
Business management
(95.74)
85.14 (8.98)
Feb. 23, 1983
Credit card services
(56)
(61.43)
(100)
(100)
(100)
(100)
(100)
(100)
41
61.43
100
Sep. 17, 1993
Automotive financing
Sep. 19, 2000
Commercial banking
Apr. 1, 2004
Management support services
0
0
(100)
Apr. 1, 1998
Consulting and agency services for
consumer loans and non-life insurance
(100)
Jul. 14, 1976
Credit guarantee
—
100
100
Dec. 5, 1972
Collecting agent and factoring
Jul. 1, 2004
SME business agency services
Apr. 1, 2004
Data processing service and e-trading
consulting
(40)
0
(40)
Sep. 22, 2005
Venture capital
(100)
(100)
50
(1.63)
May 1, 1981
Management consulting and seminar
organizer
100
Mar. 11, 1999
Servicer
(50.21)
27.53 (5.00)
Mar. 29, 1969
System engineering and data processing
(46.43) 45.10 (1.33)
Sep. 6, 1949
Commercial banking
(60.19)
49.39 (0.35)
Jul. 1, 1922
Commercial banking
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
100
100
100
100
100
100
100
100
100
100
100
100
100
Jul. 15, 1982
Banking clerical work
May 27, 1998
Seminar organizer
Apr. 15, 2002
Banking clerical work
Oct. 16, 1995
Banking clerical work
Jan. 31, 1996
Banking clerical work
Mar. 15, 1990
Banking clerical work
Sep. 28, 1983
Banking clerical work
Dec. 21, 1994
Banking clerical work
Sep. 24, 1976
Banking clerical work
Mar. 8, 2010
Investments for corporate revitalization and other
related investments
Feb. 3, 2003
Banking clerical work
Feb. 3, 2003
Banking clerical work
Feb. 1, 1984
Banking clerical work
(69.71)
69.71
Sep. 21, 2000
Defined contribution plan administrator
(100)
(50.1)
100
50.1
Apr. 16, 2009
Electronic monetary claims recording
Mar. 1, 2010
Provision and translation of business tools and
research information
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
*1 On April 1, 2012, SMBC Business Support Co., Ltd. became a wholly owned subsidiary with direct investment from our wholly owned subsidiary SMBC.
*2 On April 1, 2012, Financial Link Co., Ltd. was taken over by SMBC Finance Business Planning Co., Ltd., with the latter as surviving entity. SMBC Finance Business
Planning changed its registered trade name to Financial Link Co., Ltd. on the same day.
244
SMFG 2013 ■ Principal Overseas Subsidiaries
Company Name
Country
Issued Capital
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
Sumitomo Mitsui Banking
Corporation Europe Limited
Sumitomo Mitsui Banking
Corporation (China) Limited
Manufacturers Bank
Sumitomo Mitsui Banking
Corporation of Canada
Banco Sumitomo Mitsui
Brasileiro S.A.
U.K.
China
U.S.A.
Canada
Brazil
ZAO Sumitomo Mitsui Rus Bank
Russia
PT Bank Sumitomo Mitsui
Indonesia
Sumitomo Mitsui Banking
Corporation Malaysia Berhad
SMBC Leasing and Finance, Inc.
SMBC Capital Markets, Inc.
SMBC Nikko Securities America,
Inc.
SMBC Financial Services, Inc.
Indonesia
Malaysia
U.S.A.
U.S.A.
U.S.A.
U.S.A.
SMBC Cayman LC Limited*3
Cayman Islands
SFVI Limited
British Virgin Islands
SMBC International Finance N.V.
Curaçau
SMBC Leasing Investment LLC
SMBC Capital Partners LLC
U.S.A.
U.S.A.
US$2,400 million
CNY7.0 billion
US$80.786 million
C$244 million
R$667.806 million
RUB6.4 billion
Rp2,873.9 billion
MYR700 million
US$4,350
US$100
US$111.10
US$300
US$500
US$1,200
US$200,000
US$622 million
US$10,000
SMBC MVI SPC
Cayman Islands
US$195 million
SMBC DIP Limited
Cayman Islands
US$8 million
SMBC Nikko Capital Markets
Limited
U.K.
SMBC Derivative Products Limited U.K.
SMBC Capital India Private Limited India
Sumitomo Mitsui Finance Dublin
Limited
SMBC Aviation Capital Limited
Ireland
Ireland
Sakura Finance Asia Limited
Hong Kong
US$654 million
US$200 million
Rs400 million
US$18 million
US$187 million
US$65.5 million
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(100)
(100)
(100)
(100)
(100)
100
100
100
100
100
Mar. 5, 2003
Commercial banking
Apr. 27, 2009
Commercial banking
Jun. 26, 1962
Commercial banking
Apr. 1, 2001
Commercial banking
Oct. 6, 1958
Commercial banking
(100)
99
(1)
May 8, 2009
Commercial banking
(98.47)
98.47
Aug. 22, 1989
Commercial banking
(100)
100
Dec. 22, 2010
Commercial banking
(100)
94.89
(3.81)
Nov. 9, 1990
Leasing, investments
(100)
90
(10)
Dec. 4, 1986
Derivatives and investments
(100)
81.00 (18.99)
Aug. 8, 1990
Securities, investments
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
100
100
100
100
Aug. 8, 1990
Feb. 7, 2003
Investments,
investment advisor
Credit guarantee,
bond investment
Jul. 30, 1997
Investments
Jun. 25, 1990
Finance
0
(100)
Apr. 7, 2003
Investments in leasing
100
100
100
100
Dec. 18, 2003
Holding and trading securities
Sep. 9, 2004
Loans, buying/
selling of monetary claims
Mar. 16, 2005
Loans, buying/
selling of monetary claims
Mar. 13, 1990
Derivatives and investments,
securities services
(100)
0
(100)
Apr. 18, 1995
Derivatives and investments
(100)
99.99
(0.00)
Apr. 3, 2008
Advisory services
(100)
(90)
(100)
(100)
100
30
100
100
—
Sep. 19, 1989
Finance
Aug. 14, 1997
Leasing
Oct. 17, 1977
Investments
Jun. 29, 1984
Investments
Nov. 28, 2006
Finance
Sumitomo Mitsui Finance Australia
Limited
SMFG Preferred Capital USD 1
Limited
Australia
A$156.5 million
Cayman Islands
US$649.491 million
100
*3 SMBC Cayman LC Limited, like other subsidiaries of SMBC, is a separate corporate entity with its own separate creditors and the claims of such creditors are
prior to the claims of SMBC, as the direct or indirect holder of the equity in such subsidiary.
245
SMFG 2013 Company Name
Country
Issued Capital
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
SMFG Preferred Capital GBP 1
Limited
SMFG Preferred Capital USD 2
Limited
SMFG Preferred Capital GBP 2
Limited
SMFG Preferred Capital JPY 1
Limited
SMFG Preferred Capital USD 3
Limited
SMFG Preferred Capital JPY 2
Limited
SMFG Preferred Capital JPY 3
Limited
SMBC Preferred Capital USD 1
Limited
SMBC Preferred Capital GBP 1
Limited
SMBC Preferred Capital USD 2
Limited
SMBC Preferred Capital GBP 2
Limited
SMBC Preferred Capital JPY 1
Limited
SMBC Preferred Capital USD 3
Limited
SMBC Preferred Capital JPY 2
Limited
Cayman Islands
£73.676 million
Cayman Islands
US$1,800 million
Cayman Islands
£250 million
Cayman Islands
¥135,000 million
Cayman Islands
US$1,350 million
Cayman Islands
¥698,900 million
Cayman Islands
¥392,900 million
Cayman Islands
US$662.647 million
Cayman Islands
£78.121 million
Cayman Islands
US$1,811 million
Cayman Islands
£251.5 million
Cayman Islands
¥137,000 million
Cayman Islands
US$1,358 million
Cayman Islands
¥706,500 million
100
100
100
100
100
100
100
0
0
0
0
0
0
0
(100)
(100)
(100)
(100)
(100)
(100)
(100)
—
—
—
—
—
—
—
100
100
100
100
100
100
100
Nov. 28, 2006
Finance
Oct. 25, 2007
Finance
Oct. 25, 2007
Finance
Jan. 11, 2008
Finance
Jul. 8, 2008
Finance
Nov. 3, 2008
Finance
Aug. 12, 2009
Finance
Nov. 28, 2006
Finance
Nov. 28, 2006
Finance
Oct. 25, 2007
Finance
Oct. 25, 2007
Finance
Jan. 11, 2008
Finance
Jul. 8, 2008
Finance
Nov. 19, 2008
Finance
Issued Capital
(Millions of Yen)
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
100
0
(40)
2,000
43.96
2,000
5,000
600
(40)
(50)
(49)
40
—
40
—
49
Feb. 1, 2010
Investments, fund management
Apr. 1, 1999
Investment advisory and investment trust
management
Dec. 1, 2002
Investment advisory and investment trust
management
Jul. 3, 2006
System engineering and data processing
Nov. 29, 1972
System engineering and data processing
(15.00)
15.00
May 24, 1989
Commercial banking
(35.54)
35.54
May 25, 1982
Credit card services
33.99
—
Feb. 21, 1981
Leasing
(24.00)
24.00
Apr. 24, 2012
Investment management
0
0
0
0
0
0
■ Principal Affiliates
Company Name
Daiwa Securities SMBC Principal
Investments Co., Ltd.
Daiwa SB Investments Ltd.
Sumitomo Mitsui Asset Management
Company, Limited
JSOL CORPORATION
Sakura Information Systems Co., Ltd.
Vietnam Export Import Commercial Joint Stock
Bank
VND12,526.947
billion
POCKET CARD CO., LTD.
Sumitomo Mitsui Auto Service Company, Limited
14,374
6,950
China Post & Capital Fund Management Co., Ltd. CNY100 million
246
SMFG 2013 International Directory (as of June 30, 2013)
Asia and Oceania
SMBC Branches and
Representative Offices
Hong Kong Branch
7th & 8th Floor, One International
Finance Centre, 1 Harbour View
Street, Central, Hong Kong
Special Administrative Region,
The People’s Republic of China
Tel: 852-2206-2000
Fax: 852-2206-2888
Shanghai Branch
15F, Shanghai World Financial
Center, 100 Century Avenue,
Pudong New Area, Shanghai
200120, The People’s Republic of
China
Tel: 86 (21) 3860-9700
Fax: 86 (21) 3860-9799
Dalian Representative Office
Senmao Building 9F, 147
Zhongshan Lu, Dalian 116011,
The People’s Republic of China
Tel: 86 (411) 8370-7873
Fax: 86 (411) 8370-7761
Taipei Branch
3F, Walsin Lihwa Xinyi Building,
No. 1 Songzhi Road, Xinyi District,
Taipei 110, Taiwan
Tel: 886 (2) 2720-8100
Fax: 886 (2) 2720-8287
Seoul Branch
12F, Mirae Asset CENTER1 Bldg.
West Tower, 26, Eulji-ro 5-gil,
Jung-gu Seoul, 100-210,
The Republic of Korea
Tel: 82 (2) 6364-7000
Fax: 82 (2) 6364-7051
Singapore Branch
3 Temasek Avenue #06-01,
Centennial Tower, Singapore
039190, Republic of
Singapore
Tel: 65-6882-0001
Fax: 65-6887-0330
Labuan Branch
Level 12 (B&C), Main Office
Tower, Financial Park Labuan,
Jalan Merdeka, 87000 Labuan,
Federal Territory, Malaysia
Tel: 60 (87) 410955
Fax: 60 (87) 410959
Labuan Branch
Kuala Lumpur Office
Level 51, Vista Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2168-1700
Fax: 60 (3) 2168-1785
Ho Chi Minh City Branch
9th Floor, The Landmark,
5B Ton Duc Thang Street,
District 1, Ho Chi Minh City,
Vietnam
Tel: 84 (8) 3520-2525
Fax: 84 (8) 3822-7762
Hanoi Branch
1105, 11th Floor, Pacific Place
Building, 83B Ly Thuong Kiet
Street, Hanoi, Vietnam
Tel: 84 (4) 3946-1100
Fax: 84 (4) 3946-1133
Yangon Representative Office
#1217, 12A Floor Sakura Tower,
No.339 Bogyoke Aung San Road,
Kyauktada Township, Yangon,
Myanmar
Tel: 95 (1) 255397
Phnom Penh Representative Office
Phnom Penh Tower (13 Floor)
No.445, Preah Monivong Blvd
corner with Street 232, Sangkat
Boeung Pralit, Khan 7 Makara,
Phnom Penh, Cambodia
Tel: 855 (23) 964-080
Fax: 855 (23) 964-082
Bangkok Branch
8th-10th Floor, Q.House Lumpini
Building, 1 South Sathorn Road,
Tungmahamek, Sathorn, Bangkok
10120, Thailand
Tel: 66 (2) 353-8000
Fax: 66 (2) 353-8282
Chonburi Exchange Office
Harbor Office 14th Floor, 4/222
Moo. 10 Sukhumvit Road,
Tungsukla, Sriracha, Chonburi
20230 Thailand
Tel: 66 (38) 400-700
Fax: 66 (38) 400-715
Manila Representative Office
20th Floor, Rufino Pacific Tower,
6784 Ayala Avenue, Makati City,
Metro Manila, The Philippines
Tel: 63 (2) 841-0098/9
Fax: 63 (2) 811-0877
Sydney Branch
Level 35, The Chifley Tower,
2 Chifley Square, Sydney, NSW
2000, Australia
Tel: 61 (2) 9376-1800
Fax: 61 (2) 9376-1863
Perth Branch
Level 19, Exchange Plaza,
2 The Esplanade, Perth, Western
Australia 6000, Australia
Tel: 61 (8) 9492-4900
Fax: 61 (8) 9221-7524
New Delhi Branch
12, 13 Floor, Hindustan Times
House, 18-20, Kasturba Gandhi
Marg, New Delhi 110001, India
Tel: 91 (11) 4768-9111
Fax: 91 (11) 4768-9222
New Delhi Representative Office
B-14/A, Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016,
India
Tel: 91 (11) 4670-9945
Fax: 91 (11) 4056-6216
SMBC Principal Subsidiaries/
Affiliates
SMFG Network
Sumitomo Mitsui Banking
Corporation (China) Limited
Head Office (Shanghai)
11F, Shanghai World Financial
Center, 100 Century Avenue,
Pudong New Area, Shanghai
200120, The People’s Republic of
China
Tel: 86 (21) 3860-9000
Fax: 86 (21) 3860-9999
Sumitomo Mitsui Banking
Corporation (China) Limited
Shanghai Puxi Sub-Branch
1, 12, 13, 12F, Maxdo Center,
8 Xingyi Road, Changning District,
Shanghai, The People’s Republic of
China
Tel: 86 (21) 2219-8000
Fax: 86 (21) 2219-8199
247
SMFG 2013
Sumitomo Mitsui Banking
Corporation (China) Limited
Beijing Branch
Unit1601,16F, North Tower,
Beijing Kerry Centre, No.1, Guang
Hua Road, Chao Yang District,
Beijing 100020, The People’s
Republic of China
Tel: 86 (10) 5920-4500
Fax: 86 (10) 5915-1080
Sumitomo Mitsui Banking
Corporation (China) Limited
Tianjin Branch
12F, The Exchange Tower 2, 189
Nanjing Road, Heping District,
Tianjin 300051, The People’s
Republic of China
Tel: 86 (22) 2330-6677
Fax: 86 (22) 2319-2111
Sumitomo Mitsui Banking
Corporation (China) Limited
Tianjin Binhai Sub-Branch
8F, E2B, Binhai Financial Street,
No.20, Guangchang East Road,
TEDA, Tianjin 300457,
The People’s Republic of China
Tel: 86 (22) 6622-6677
Fax: 86 (22) 6628-1333
Sumitomo Mitsui Banking
Corporation (China) Limited
Guangzhou Branch
12F, International Finance Place,
No.8 Huaxia Road, Tianhe District,
Guangzhou 510623, The People’s
Republic of China
Tel: 86 (20) 3819-1888
Fax: 86 (20) 3810-2028
Sumitomo Mitsui Banking
Corporation (China) Limited
Suzhou Branch
12F, SND International Commerce
Tower, No.28 Shishan Road, Suzhou
New District, Jiangsu 215011
The People’s Republic of China
Tel: 86 (512) 6606-6500
Fax: 86 (512) 6606-8500
248
Sumitomo Mitsui Banking
Corporation (China) Limited
Suzhou Industrial Park Sub-Branch
16F, International Building, No.2,
Suzhou Avenue West, Suzhou
Industrial Park, Jiangsu 215021,
The People’s Republic of China
Tel: 86 (512) 6288-5018
Fax: 86 (512) 6288-5028
Sumitomo Mitsui Banking
Corporation (China) Limited
Chongqing Branch
Unit 2, 34F, Tower1, River
International, 22 Nanbin Road,
Nan’an District, Chongqing 400060,
The People’s Republic of China
Tel: 86 (23) 8812-5300
Fax: 86 (23) 8812-5301
Sumitomo Mitsui Banking
Corporation (China) Limited
Changshu Sub-Branch
8F, Science Innovation Building
(Kechuang Building), No.333
Dongnan Road, Changshu
Southeast Economic Development
Zone of Jiangsu, Changshu,
Jiangsu, The People’s Republic of
China
Tel: 86 (512) 5235-5553
Fax: 86 (512) 5235-5552
Sumitomo Mitsui Banking
Corporation (China) Limited
Hangzhou Branch
23F, Golden Plaza, No.118, Qing
Chun Road, Xia Cheng District,
Hangzhou, Zhejiang 310003,
The People’s Republic of China
Tel: 86 (571) 2889-1111
Fax: 86 (571) 2889-6699
Sumitomo Mitsui Banking
Corporation (China) Limited
Shenyang Branch
1501, E Building, Shenyang Fortune
Plaza, 59 Beizhan Road, Shenhe
District, Shenyang,
The People’s Republic of China
Tel: 86 (24) 3128-7000
Fax: 86 (24) 3128-7005
Sumitomo Mitsui Banking
Corporation (China) Limited
Shenzhen Branch
23/F, Tower Two, Kerry Plaza, 1
Zhongxinsi Road, Futian District,
Shenzhen 518048, The People’s
Republic of China
Tel: 86 (755) 2383-0980
Fax: 86 (755) 2383-0707
PT Bank Sumitomo Mitsui
Indonesia
Summitmas II, 10th Floor, JI.
Jendral Sudirman Kav. 61-62,
Jakarta Selatan 12190, Indonesia
Tel: 62 (21) 522-7011
Fax: 62 (21) 522-7022
PT Bank Tabungan Pensiunan
Nasional Tbk
Cyber 2 Tower 24th and 25th
Floor, Jl. HR. Rasuna Said Blok
X-5 No. 13, Jakarta Selatan 12950,
Indonesia
Tel: 62 (21) 300-26200
Fax: 62 (21) 300-26307
Sumitomo Mitsui Banking
Corporation Malaysia Berhad
Level 51, Vista Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2168-1500
Fax: 60 (3) 2168-1770
SMBC SSC Sdn. Bhd.
Level 50, Vista Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2168-1600
Fax: 60 (3) 2168-1786
Sumitomo Mitsui Finance Australia
Limited
Level 35, The Chifley Tower,
2 Chifley Square, Sydney, NSW
2000, Australia
Tel: 61 (2) 9376-1800
Fax: 61 (2) 9376-1863
SMBC Capital Markets (Asia)
Limited
7th Floor, One International
Finance Centre, 1 Harbour View
Street, Central, Hong Kong
Special Administrative Region,
The People’s Republic of China
Tel: 852-2532-8500
Fax: 852-2532-8505
SMFG 2013 SMBC Metro Investment
Corporation
20th Floor, Rufino Pacific Tower,
6784 Ayala Avenue, Makati City,
Metro Manila, The Philippines
Tel: 63 (2) 811-0845
Fax: 63 (2) 811-0876
Vietnam Export Import
Commercial Joint Stock Bank
72 Le Thanh Ton & 47 Ly Tu Trong,
Ben Nghe Ward, District 1,
Ho Chi Minh City, Vietnam
Tel: 84 (8) 3821-0056
Fax: 84 (8) 3821-6913
SBCS Co., Limited
10th Floor, Q. House Lumpini
Building, 1 South Sathorn Road,
Tungmahamek, Sathorn,
Bangkok 10120, Thailand
Tel: 66 (2) 677-7270~5
Fax: 66 (2) 677-7279
PT. SBCS Indonesia
Summitmas II, 19th Floor, Jl. Jendral
Sudirman Kav. 61-62, Jakarta
Selatan 12190, Indonesia
Tel: 62 (21) 252-3711
Fax: 62 (21) 252-2592
BSL Leasing Co., Ltd.
19th Floor, Sathorn City Tower,
175 South Sathorn Road,
Thungmahamek, Sathorn,
Bangkok, 10120, Thailand
Tel: 66 (2) 670-4700
Fax: 66 (2) 679-6160
The Japan Research Institute
(Shanghai) Solution Co., Ltd.
Unit 141, 18F, Hang Seng Bank Tower,
1000 Lujiazui Ring Road,
Pudong New Area,
Shanghai, 200120, The People’s
Republic of China
Tel: 86 (21) 6841-2788
Fax: 86 (21) 6841-1287
The Japan Research Institute
(Shanghai) Consulting Co., Ltd.
Unit 41, 18F, Hang Seng Bank Tower,
1000 Lujiazui Ring Road,
Pudong New Area,
Shanghai, 200120, The People’s
Republic of China
Tel: 86 (21) 6841-1288
Fax: 86 (21) 6841-1287
The Japan Research Institute
(Shanghai) Consulting Co., Ltd.
Beijing Branch
Unit 906, 9F, Kerry Centre, 1
Guanghua Street, Chaoyang Area,
Beijing 100020, The People’s
Republic of China
Tel: 86 (10) 8529-8141
Fax: 86 (10) 8529-7343
Sumitomo Mitsui Finance and
Leasing (Singapore) Pte. Ltd.
152 Beach Road,
Gateway East #21-5,
Singapore 189721
Tel: 65-6224-2955
Fax: 65-6225-3570
Sumitomo Mitsui Finance and
Leasing (Hong Kong) Ltd.
Unit 913, 9/F, Miramar Tower,
132, Nathan Road, Tsim Sha Tsui,
Kowloon, Hong Kong
The People’s Republic of China
Tel: 852-2523-4155
Fax: 852-2845-9246
SMFL Leasing (Thailand) Co., Ltd.
30th Floor, Q. House
Lumpini Building,
1 South Sathorn Road,
Tungmahamek, Sathorn,
Bangkok 10120, Thailand
Tel: 66 (2) 677-7400
Fax: 66 (2) 677-7413
Sumitomo Mitsui Finance and
Leasing (China) Co., Ltd.
Unit 802, TaiKoo Hui Tower 1,
385 Tianhe Road, Guangzhou,
The People’s Republic of China
Tel: 86 (20) 8755-0021
Fax: 86 (20) 8755-0422
Sumitomo Mitsui Finance and
Leasing (China) Co., Ltd.
Shanghai Branch
18th Floor, Shanghai Times Square,
93 Middle Huaihai Road,
Huangpu District, Shanghai,
The People’s Republic of China
Tel: 86 (21) 5396-5522
Fax: 86 (21) 5396-5552
Sumitomo Mitsui Finance and
Leasing (China) Co., Ltd.
Beijing Branch
Unit 1623-1627, 16F, South Tower,
Beijing Kerry Centre, 1 Guanghua
Road, Chaoyang District, Beijing,
The People’s Republic of China
Tel: 86 (10) 8529-7887
Fax: 86 (10) 8529-7687
SMFL Leasing (Malaysia) Sdn. Bhd.
Letter Box No.58, 11th Floor,
UBN Tower, 10, Jalan P. Ramlee,
50250 Kuala Lumpur, Malaysia
Tel: 60 (3) 2026-2619
Fax: 60 (3) 2026-2627
PT. SMFL Leasing Indonesia
Summitmas II, 12th Floor, Jl.Jendral
Sudirman Kav. 61-62 Jakarta
Selatan 12190, Indonesia
Tel: 62 (21) 520-2083
Fax: 62 (21) 520-2088
Sumitomo Mitsui Auto Leasing &
Service (Thailand) Co., Ltd.
161, Nantawan Building, 17th Floor,
Rajdamri Road, Lumpinee,
Pathumwan, Bangkok 10330,
Thailand
Tel: 66-2252-9511
Fax: 66-2650-5665
Summit Auto Lease Australia Pty
Ltd.
Unit 7, 38-46 South Street
Rydalmere, NSW 2116 Australia
Tel: 61 (2) 9638-7833
Fax: 61 (2) 9638-7832
PROMISE (HONG KONG) CO., LTD.
14th Floor, Luk Kwok Centre, 72
Gloucester Road, Wanchai, Hong
Kong Special Administrative Region,
The People’s Republic of China
Tel: 852 (3199) 1000
Fax: 852 (2582) 5472
Liang Jing Co., Ltd.
8FI, No.6, Sec 3, Min Chuan E. Rd.,
Taipei, Taiwan 104, R.O.C.
Tel: 886 (2) 2515-1598
Fax: 886 (2) 2515-6556
249
SMFG 2013 PROMISE (THAILAND) CO., LTD.
15th Floor, Capital Tower, All
Seasons Place, 87/1 Wireless Road,
Lumpini, Phatumwan, Bangkok
10330, Thailand
Tel: 66 (2) 655-8574
Fax: 66 (2) 655-8170
PROMISE (SHENZHEN) CO., LTD.
1001, 10/F, Tower A, Kingkey 100
Building, No. 5016 Shennan East
Road, Luohu District, Shenzhen
518000, The People’s Republic of
China
Tel: 86 (755) 2396-6200
Fax: 86 (755) 2396-6379
PROMISE (SHENYANG) CO., LTD.
Room 1501/1502, No.1 Yuebin Street,
Shenhe District, Shenyang,
Liaoning Province 110013,
The People’s Republic of China
Tel: 86 (24) 2250-6200
Fax: 86 (24) 2250-6220
Promise Consulting Service
(Shenzhen) Co., Ltd.
1003, 10/F, Tower A, Kingkey 100
Building, No. 5016 Shennan East
Road, Luohu District, Shenzhen
518000, The People’s Republic of
China
Tel: 86 (755) 3698-5100
Fax: 86 (755) 3698-5148
PROMISE (TIANJIN) CO., LTD.
Room H-I-K 17th Floor, TEDA
Building No. 256, Jie-Fang Nan Road,
Hexi District, Tianjin 300042,
The People’s Republic of China
Tel: 86 (22) 5877-8700
Fax: 86 (22) 5877-8799
SMCC Consulting (Shanghai) Co.,
Ltd.
Room 5135, 51F Raffles City Centre,
268 Xi Zang Middle Road, Huang
Pu District, Shanghai 200001,
The People’s Republic of China
Tel: 86 (21) 2312-7632
The Americas
SMBC Branches and
Representative Offices
New York Branch
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-4000
Fax: 1 (212) 593-9522
Cayman Branch
P.O. Box 694, Edward Street,
George Town, Grand Cayman,
Cayman Islands
Los Angeles Branch
601 South Figueroa Street,
Suite 1800, Los Angeles,
CA 90017, U.S.A.
Tel: 1 (213) 452-7800
Fax: 1 (213) 623-6832
San Francisco Branch
555 California Street, Suite 3350,
San Francisco, CA 94104, U.S.A.
Tel: 1 (415) 616-3000
Fax: 1 (415) 397-1475
Houston Representative Office
Two Allen Center, 1200 Smith
Street, Suite 1140, Houston, Texas
77002, U.S.A.
Tel: 1 (713) 277-3500
Fax: 1 (713) 277-3555
Mexico City Representative Office
Torre Altiva Boulevard Manuel
Avila Camacho 138 Piso 2, Loc. B
Lomas de Chapultepec, 11000
Mexico, D.F.
Tel: 52 (55) 2623-0200
Fax: 52 (55) 2623-1375
Bogota Representative Office
Carrera 9 #113-52, Oficina 808,
Bogotá D.C., Colombia
Tel: 57 (1) 619-7200
Fax: 57 (1) 629-4288
SMBC Nikko Capital Markets
Limited (Sydney Office)
Level 35, The Chifley Tower, 2 Chifley
Square, Sydney, NSW 2000, Australia
Tel: 61 (2) 9376-1895
Lima Representative Office
Avenida Canaval y Moreyra 380,
Oficina 702, San Isidro, Lima 27, Peru
Tel: 51 (1) 200-3600
Fax: 51 (1) 200-3629
Santiago Representative Office
Av. El Golf 82, Of. 1001, Las Condes,
Santiago, Chile
Tel: 56 (2) 2896-8440
Fax: 56 (2) 2896-8459
SMBC Principal Subsidiaries/
Affiliates
SMFG Network
Manufacturers Bank
515 South Figueroa Street,
Los Angeles, CA 90071, U.S.A.
Tel: 1 (213) 489-6200
Fax: 1 (213) 489-6254
Sumitomo Mitsui Banking
Corporation of Canada
Ernst & Young Tower, Toronto
Dominion Centre, Suite 1400,
P.O. Box 172, 222 Bay Street,
Toronto, Ontario M5K
1H6, Canada
Tel: 1 (416) 368-4766
Fax: 1 (416) 367-3565
Banco Sumitomo Mitsui Brasileiro
S.A.
Avenida Paulista, 37-11 e 12
andar Sao Paulo-SP-CEP 01311-
902, Brazil
Tel: 55 (11) 3178-8000
Fax: 55 (11) 3289-1668
Banco Sumitomo Mitsui Brasileiro
S. A. Cayman Branch
11 Dr. Roy’s Drive, George Town,
Grand Cayman, Cayman Islands
SMBC Capital Markets, Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-5100
Fax: 1 (212) 224-4950
SMBC Leasing and Finance, Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-5200
Fax: 1 (212) 224-5167
SMBC Nikko Securities America,
Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-5300
Fax: 1 (212) 224-4959
250
SMFG 2013
JRI America, Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-4200
Fax: 1 (212) 224-4379
Europe, Middle-East and Africa
SMBC Branches and
Representative Offices
Düsseldorf Branch
Prinzenallee 7, 40549 Düsseldorf,
Federal Republic of Germany
Tel: 49 (211) 36190
Fax: 49 (211) 3619236
Brussels Branch
Neo Building, Rue Montoyer 51,
Box 6, 1000 Brussels, Belgium
Tel: 32 (2) 551-5000
Fax: 32 (2) 513-4100
Dubai Branch
Building One, 5th Floor, Gate
Precinct, Dubai International
Financial Centre, PO Box 506559
Dubai, United Arab Emirates
Tel: 971 (4) 428-8000
Fax: 971 (4) 428-8001
Madrid Representative Office
Villanueva, 12-1. B, 28001 Madrid,
Spain
Tel: 34 (91) 576-6196
Fax: 34 (91) 577-7525
Prague Representative Office
International Business Centre,
Pobrezni 3,186 00 Prague 8,
Czech Republic
Tel: 420 (224) 832-911
Fax: 420 (224) 832-933
Bahrain Representative Office
No.406 & 407 (Entrance 3, 4th
Floor) Manama Centre,
Government Road, Manama,
State of Bahrain
Tel: 973-17223211
Fax: 973-17224424
Tehran Representative Office
4th Floor, 80 Nezami Gangavi
Street, Vali-e-Asr Avenue, Tehran
14348, Islamic Republic of Iran
Tel: 98 (21) 8879-4586/7
Fax: 98 (21) 8820-6523
Doha QFC Office
Office 1901, 19th Floor, Qatar
Financial Centre Tower,
Diplomatic Area-West bay, Doha,
Qatar, P.O.Box 23769
Tel: 974-4496-7572
Fax: 974-4496-7576
Cairo Representative Office
Flat No.6 of the 14th Fl., 3 Ibn
Kasir Street, Cornish El Nile, Giza,
Arab Republic of Egypt
Tel: 20 (2) 3761-7657
Fax: 20 (2) 3761-7658
Johannesburg Representative
Office
Building Four, First Floor,
Commerce Square,
39 Rivonia Road, Sandhurst,
Sandton 2196, South Africa
Tel: 27 (11) 502-1780
Fax: 27 (11) 502-1790
Istanbul Representative Office
Metrocity Is Merkezi, Kirgulu Sokak
No: 4 Kat: 7/A D Blok, Esentepe
Mahallesi, Sisli 34394, Istanbul,
Republic of Turkey
Tel: 90 (212) 371-5900
Fax: 90 (212) 371-5901
SMBC Principal Subsidiaries/
Affiliates
SMFG Network
Sumitomo Mitsui Banking
Corporation Europe Limited
Head Office
99 Queen Victoria Street, London
EC4V 4EH, U.K.
Tel: 44 (20) 7786-1000
Fax: 44 (20) 7236-0049
Sumitomo Mitsui Banking
Corporation Europe Limited
Paris Branch
20, Rue de la Ville l’Evêque,
75008 Paris, France
Tel: 33 (1) 44 (71) 40-00
Fax: 33 (1) 44 (71) 40-50
Sumitomo Mitsui Banking
Corporation Europe Limited
Milan Branch
Via della Spiga 30/ Via Senato 25,
20121 Milan, Italy
Tel: 39 (02) 7636-1700
Fax: 39 (02) 7636-1701
Sumitomo Mitsui Banking
Corporation Europe Limited
Amsterdam Branch
Strawinskylaan 1733-D12,
World Trade Center, 1077 XX
Amsterdam, The Netherlands
Tel: 31 (20) 718-3888
Fax: 31 (20) 718-3889
Sumitomo Mitsui Banking
Corporation Europe Limited
Moscow Representative Office
Presnenskaya naberezhnaya, house
10, block C, Moscow, 123317,
Russian Federation
Tel: 7 (495) 287-8265
Fax: 7 (495) 287-8266
SMBC Nikko Capital Markets
Limited
One New Change, London EC4M
9AF, U.K.
Tel: 44 (20) 3527-7000
Fax: 44 (20) 3527-7500
SMBC Derivative Products Limited
One New Change, London
EC4M 9AF, U.K.
Tel: 44 (20) 3527-7000
Fax: 44 (20) 3527-7500
ZAO Sumitomo Mitsui Rus Bank
Presnenskaya naberezhnaya,
house 10, block C, Moscow
123317, Russian Federation
Tel: 7 (495) 287-8200
Fax: 7 (495) 287-8201
Sumitomo Mitsui Finance Dublin
Limited
La Touche House, I.F.S.C.,
Custom House Docks, Dublin 1,
Ireland
Tel: 353 (1) 670-0066
Fax: 353 (1) 670-0353
JRI Europe, Limited
99 Queen Victoria Street, London
EC4V 4EH, U.K.
Tel: 44 (20) 7406-2700
Fax: 44 (20) 7406-2799
SMBC Aviation Capital Limited
IFSC House, IFSC, Dublin 1, Ireland
Tel: 353 (1) 859-9000
Fax: 353 (1) 859-9230
251
SMFG 2013
*SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
*SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
Overseas service network (as of June 30, 2013)
Overseas service network (as of June 30, 2013)
Total: 65
Total: 65
(including banking subsidiaries and their branches/
(including banking subsidiaries and their branches/
sub-branches/rep. offices)
sub-branches/rep. offices)
Also showing principal overseas subsidiaries
Also showing principal overseas subsidiaries
Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
Sumitomo Mitsui
Sumitomo Mitsui
Banking Corporation
Banking Corporation
Europe Limited
Europe Limited
SMBC Nikko Capital
SMBC Nikko Capital
Markets Limited
Markets Limited
SMBCE* Amsterdam
Branch
SMBCE* Amsterdam
Branch
Brussels Branch
Brussels Branch
SMBCE*
Moscow Representative Office
SMBCE*
Moscow Representative Office
ZAO Sumitomo Mitsui Rus Bank
ZAO Sumitomo Mitsui Rus Bank
SMBCE* Paris Branch
SMBCE* Paris Branch
Prague Representative Office
Prague Representative Office
Düsseldorf Branch
Düsseldorf Branch
SMBCE* Milan Branch
SMBCE* Milan Branch
Madrid Representative Office
Madrid Representative Office
Istanbul Representative Office
Istanbul Representative Office
Shenyang Branch
Shenyang Branch
Tehran Representative Office
Tehran Representative Office
Cairo Representative Office
Cairo Representative Office
Bahrain Representative Office
Bahrain Representative Office
Dubai Branch
Dubai Branch
Doha QFC Office
Doha QFC Office
New Delhi Branch
New Delhi Branch
Yangon Representative Office
Yangon Representative Office
Johannesburg Representative Office
Johannesburg Representative Office
Perth Branch
Perth Branch
Sydney Branch
Sydney Branch
GLOBAL NETWORK
GLOBAL NETWORK
Asia and Oceania
Asia and Oceania
Sumitomo Mitsui Finance Australia Limited
SMBC Nikko Capital Markets Limited (Sydney Office)
Sumitomo Mitsui Finance Australia Limited
SMBC Nikko Capital Markets Limited (Sydney Office)
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
Tianjin Branch
Suzhou Branch
Guangzhou Branch
Head Office (Shanghai)
■ Sumitomo Mitsui Banking Corporation (China) Limited
Head Office (Shanghai)
■ Sumitomo Mitsui Banking Corporation (China) Limited
Tianjin Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Guangzhou Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Suzhou Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Hangzhou Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Beijing Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Shenyang Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Shenzhen Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Chongqing Branch
Chongqing Branch
Hangzhou Branch
Shenyang Branch
Shenzhen Branch
Beijing Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
Changshu Sub-Branch
Tianjin Binhai Sub-Branch
Shanghai Puxi Sub-Branch
Suzhou Industrial Park Sub-Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
Tianjin Binhai Sub-Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Suzhou Industrial Park Sub-Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Changshu Sub-Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Shanghai Puxi Sub-Branch
■ Shanghai Branch
■ Shanghai Branch
■ Dalian Representative Office
■ Dalian Representative Office
■ Hong Kong Branch
■ Hong Kong Branch
SMBC Capital Markets (Asia) Limited
■ Taipei Branch
■ Taipei Branch
■ Seoul Branch
■ Seoul Branch
■ Singapore Branch
■ Singapore Branch
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Labuan Branch
■ Labuan Branch
■ Labuan Branch Kuala Lumpur Office
■ Labuan Branch Kuala Lumpur Office
SMBC SSC Sdn. Bhd.
SMBC Capital Markets (Asia) Limited
SMBC SSC Sdn. Bhd.
SBCS Co., Limited
■ Ho Chi Minh City Branch
■ Ho Chi Minh City Branch
■ Hanoi Branch
■ Hanoi Branch
■ Vietnam Export Import Commercial Joint Stock Bank
■ Vietnam Export Import Commercial Joint Stock Bank
■ Yangon Representative Office
■ Yangon Representative Office
■ Phnom Penh Representative Office
■ Phnom Penh Representative Office
■ Bangkok Branch
■ Bangkok Branch
SBCS Co., Limited
■ Chonburi Exchange Office
■ Chonburi Exchange Office
■ Manila Representative Office
■ Manila Representative Office
SMBC Metro Investment Corporation
■ Sydney Branch
Sumitomo Mitsui Finance Australia Limited
Sumitomo Mitsui Finance Australia Limited
SMBC Nikko Capital Markets Limited (Sydney Office)
SMBC Nikko Capital Markets Limited (Sydney Office)
■ Perth Branch
■ PT Bank Sumitomo Mitsui Indonesia
PT. SBCS Indonesia
PT Bank Tabungan Pensiunan Nasional Tbk
■ New Delhi Branch
■ Perth Branch
■ PT Bank Sumitomo Mitsui Indonesia
PT. SBCS Indonesia
PT Bank Tabungan Pensiunan Nasional Tbk
SMBC Metro Investment Corporation
■ New Delhi Branch
■ Sydney Branch
252
Sumitomo Mitsui Banking Corporation of Canada
Sumitomo Mitsui Banking Corporation of Canada
New York Branch
New York Branch
SMBC Capital Markets, Inc.
SMBC Capital Markets, Inc.
SMBC Leasing and Finance, Inc.
SMBC Leasing and Finance, Inc.
SMBC Nikko Securities America, Inc.
SMBC Nikko Securities America, Inc.
Banco Sumitomo Mitsui Brasileiro S.A.
Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Cayman Branch
Cayman Branch
Cayman Branch
Bogota Representative Office
Bogota Representative Office
Lima Representative Office
Lima Representative Office
Banco Sumitomo Mitsui Brasileiro S.A.
Banco Sumitomo Mitsui Brasileiro S.A.
Santiago Representative Office
Santiago Representative Office
Los Angeles Branch
Los Angeles Branch
San Francisco Branch
San Francisco Branch
Beijing Branch
Beijing Branch
Manufacturers Bank
Manufacturers Bank
Tianjin Branch
Tianjin Branch
Dalian
Dalian
Tianjin Binhai Sub-Branch
Tianjin Binhai Sub-Branch
Representative
Representative
Houston Representative Office
Houston Representative Office
Office
Office
Seoul
Seoul
Branch
Branch
Head Office (Shanghai)
Head Office (Shanghai)
Shanghai Puxi Sub-Branch
Shanghai Puxi Sub-Branch
Shanghai Branch
Shanghai Branch
Mexico City
Mexico City
Representative Office
Representative Office
Suzhou Branch
Suzhou Branch
Suzhou Industrial Park Sub-Branch
Suzhou Industrial Park Sub-Branch
Changshu Sub-Branch
Changshu Sub-Branch
Hangzhou
Hangzhou
Branch
Branch
Chongqing Branch
Chongqing Branch
Guangzhou
Guangzhou
Branch
Branch
Taipei Branch
Taipei Branch
Hanoi Branch
Hanoi Branch
Shenzhen Branch
Shenzhen Branch
Hong Kong Branch
Hong Kong Branch
SMBC Capital Markets (Asia) Limited
SMBC Capital Markets (Asia) Limited
SMBC Metro Investment Corp.
SMBC Metro Investment Corp.
Manila Representative Office
Manila Representative Office
Bangkok Branch
Bangkok Branch
SBCS Co., Limited
SBCS Co., Limited
Chonburi Exchange Office
Chonburi Exchange Office
Sumitomo Mitsui Banking
Sumitomo Mitsui Banking
Corporation Malaysia Berhad
Corporation Malaysia Berhad
Labuan Branch
Labuan Branch
Kuala Lumpur Office
Kuala Lumpur Office
SMBC SSC Sdn. Bhd.
SMBC SSC Sdn. Bhd.
Phnom Penh Representative Office
Phnom Penh Representative Office
Ho Chi Minh City Branch
Ho Chi Minh City Branch
Vietnam Export Import
Vietnam Export Import
Commercial Joint Stock Bank
Commercial Joint Stock Bank
Labuan Branch
Labuan Branch
Singapore Branch
Singapore Branch
PT Bank Sumitomo Mitsui Indonesia
PT Bank Sumitomo Mitsui Indonesia
PT. SBCS Indonesia
PT. SBCS Indonesia
PT Bank Tabungan Pensiunan Nasional Tbk
PT Bank Tabungan Pensiunan Nasional Tbk
Indicates branch or sub-branch of
Indicates branch or sub-branch of
Sumitomo Mitsui Banking Corporation (China) Limited
Sumitomo Mitsui Banking Corporation (China) Limited
The Americas
The Americas
Europe, Middle East and Africa
Europe, Middle East and Africa
■ New York Branch
■ New York Branch
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
■ ZAO Sumitomo Mitsui Rus Bank
■ ZAO Sumitomo Mitsui Rus Bank
Europe Limited
Europe Limited
SMBC Nikko Capital Markets Limited
SMBC Nikko Capital Markets Limited
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Paris Branch
Europe Limited Paris Branch
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Milan Branch
Europe Limited Milan Branch
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Amsterdam Branch
Europe Limited Amsterdam Branch
■ Düsseldorf Branch
■ Düsseldorf Branch
■ Brussels Branch
■ Brussels Branch
■ Madrid Representative Office
■ Madrid Representative Office
■ Prague Representative Office
■ Prague Representative Office
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Europe Limited Moscow Representative
Europe Limited Moscow Representative
Office
Office
■ Sumitomo Mitsui Finance Dublin Limited
■ Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
SMBC Aviation Capital Limited
■ Dubai Branch
■ Dubai Branch
■ Istanbul Representative Office
■ Istanbul Representative Office
■ Doha QFC Office
■ Doha QFC Office
■ Bahrain Representative Office
■ Bahrain Representative Office
■ Johannesburg Representative Office
■ Johannesburg Representative Office
■ Tehran Representative Office
■ Tehran Representative Office
■ Cairo Representative Office
■ Cairo Representative Office
SMBC Capital Markets, Inc.
SMBC Capital Markets, Inc.
SMBC Leasing and Finance, Inc.
SMBC Leasing and Finance, Inc.
SMBC Nikko Securities America, Inc.
SMBC Nikko Securities America, Inc.
■ Los Angeles Branch
■ Los Angeles Branch
■ San Francisco Branch
■ San Francisco Branch
■ Houston Representative Office
■ Houston Representative Office
■ Mexico City Representative Office
■ Mexico City Representative Office
■ Bogota Representative Office
■ Bogota Representative Office
■ Lima Representative Office
■ Lima Representative Office
■ Santiago Representative Office
■ Santiago Representative Office
■ Cayman Branch
■ Cayman Branch
■ Manufacturers Bank
■ Manufacturers Bank
■ Sumitomo Mitsui Banking Corporation of
■ Sumitomo Mitsui Banking Corporation of
Canada
Canada
■ Banco Sumitomo Mitsui Brasileiro S.A.
■ Banco Sumitomo Mitsui Brasileiro S.A.
■ Banco Sumitomo Mitsui Brasileiro S.A.
■ Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Cayman Branch
SMFG 2013 *SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
*SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
Sumitomo Mitsui Finance Dublin Limited
Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
SMBC Aviation Capital Limited
Sumitomo Mitsui
Sumitomo Mitsui
Banking Corporation
Banking Corporation
Europe Limited
Europe Limited
SMBC Nikko Capital
SMBC Nikko Capital
Markets Limited
Markets Limited
SMBCE* Amsterdam
SMBCE* Amsterdam
Branch
Branch
Brussels Branch
Brussels Branch
SMBCE* Paris Branch
SMBCE* Paris Branch
Düsseldorf Branch
Düsseldorf Branch
SMBCE* Milan Branch
SMBCE* Milan Branch
Prague Representative Office
Prague Representative Office
SMBCE*
SMBCE*
Moscow Representative Office
Moscow Representative Office
ZAO Sumitomo Mitsui Rus Bank
ZAO Sumitomo Mitsui Rus Bank
Madrid Representative Office
Madrid Representative Office
Istanbul Representative Office
Istanbul Representative Office
Tehran Representative Office
Tehran Representative Office
Cairo Representative Office
Cairo Representative Office
Bahrain Representative Office
Bahrain Representative Office
Dubai Branch
Dubai Branch
Doha QFC Office
Doha QFC Office
Johannesburg Representative Office
Johannesburg Representative Office
Perth Branch
Perth Branch
Sydney Branch
Sydney Branch
Sumitomo Mitsui Finance Australia Limited
Sumitomo Mitsui Finance Australia Limited
SMBC Nikko Capital Markets Limited (Sydney Office)
SMBC Nikko Capital Markets Limited (Sydney Office)
GLOBAL NETWORK
GLOBAL NETWORK
Asia and Oceania
Asia and Oceania
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Ho Chi Minh City Branch
■ Ho Chi Minh City Branch
Head Office (Shanghai)
Head Office (Shanghai)
Tianjin Binhai Sub-Branch
Tianjin Binhai Sub-Branch
■ Hanoi Branch
■ Hanoi Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Vietnam Export Import Commercial Joint Stock Bank
■ Vietnam Export Import Commercial Joint Stock Bank
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Shanghai Branch
■ Shanghai Branch
Tianjin Branch
Tianjin Branch
Guangzhou Branch
Guangzhou Branch
Suzhou Branch
Suzhou Branch
Hangzhou Branch
Hangzhou Branch
Beijing Branch
Beijing Branch
Shenyang Branch
Shenyang Branch
Shenzhen Branch
Shenzhen Branch
Chongqing Branch
Chongqing Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
Suzhou Industrial Park Sub-Branch
Suzhou Industrial Park Sub-Branch
Changshu Sub-Branch
Changshu Sub-Branch
Shanghai Puxi Sub-Branch
Shanghai Puxi Sub-Branch
■ Dalian Representative Office
■ Dalian Representative Office
■ Hong Kong Branch
■ Hong Kong Branch
SMBC Capital Markets (Asia) Limited
SMBC Capital Markets (Asia) Limited
■ Taipei Branch
■ Taipei Branch
■ Seoul Branch
■ Seoul Branch
■ Singapore Branch
■ Singapore Branch
■ Labuan Branch
■ Labuan Branch
■ Labuan Branch Kuala Lumpur Office
■ Labuan Branch Kuala Lumpur Office
SMBC SSC Sdn. Bhd.
SMBC SSC Sdn. Bhd.
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Yangon Representative Office
■ Yangon Representative Office
■ Phnom Penh Representative Office
■ Phnom Penh Representative Office
■ Bangkok Branch
■ Bangkok Branch
SBCS Co., Limited
SBCS Co., Limited
■ Chonburi Exchange Office
■ Chonburi Exchange Office
■ Manila Representative Office
■ Manila Representative Office
SMBC Metro Investment Corporation
SMBC Metro Investment Corporation
■ Sydney Branch
■ Sydney Branch
Sumitomo Mitsui Finance Australia Limited
Sumitomo Mitsui Finance Australia Limited
SMBC Nikko Capital Markets Limited (Sydney Office)
SMBC Nikko Capital Markets Limited (Sydney Office)
■ Perth Branch
■ Perth Branch
■ PT Bank Sumitomo Mitsui Indonesia
■ PT Bank Sumitomo Mitsui Indonesia
PT. SBCS Indonesia
PT. SBCS Indonesia
PT Bank Tabungan Pensiunan Nasional Tbk
PT Bank Tabungan Pensiunan Nasional Tbk
■ New Delhi Branch
■ New Delhi Branch
Overseas service network (as of June 30, 2013)
Overseas service network (as of June 30, 2013)
Total: 65
Total: 65
(including banking subsidiaries and their branches/
(including banking subsidiaries and their branches/
sub-branches/rep. offices)
sub-branches/rep. offices)
Also showing principal overseas subsidiaries
Also showing principal overseas subsidiaries
Los Angeles Branch
Los Angeles Branch
San Francisco Branch
San Francisco Branch
Shenyang Branch
Shenyang Branch
Beijing Branch
Beijing Branch
Manufacturers Bank
Manufacturers Bank
Sumitomo Mitsui Banking Corporation of Canada
Sumitomo Mitsui Banking Corporation of Canada
New York Branch
New York Branch
SMBC Capital Markets, Inc.
SMBC Capital Markets, Inc.
SMBC Leasing and Finance, Inc.
SMBC Leasing and Finance, Inc.
SMBC Nikko Securities America, Inc.
SMBC Nikko Securities America, Inc.
New Delhi Branch
New Delhi Branch
Yangon Representative Office
Yangon Representative Office
Tianjin Branch
Tianjin Binhai Sub-Branch
Tianjin Branch
Tianjin Binhai Sub-Branch
Dalian
Dalian
Representative
Representative
Office
Office
Seoul
Branch
Seoul
Branch
Head Office (Shanghai)
Shanghai Puxi Sub-Branch
Head Office (Shanghai)
Shanghai Puxi Sub-Branch
Shanghai Branch
Shanghai Branch
Suzhou Branch
Suzhou Industrial Park Sub-Branch
Changshu Sub-Branch
Suzhou Branch
Suzhou Industrial Park Sub-Branch
Changshu Sub-Branch
Hangzhou
Hangzhou
Branch
Branch
Chongqing Branch
Chongqing Branch
Guangzhou
Guangzhou
Branch
Branch
Taipei Branch
Taipei Branch
Hanoi Branch
Hanoi Branch
Shenzhen Branch
Shenzhen Branch
Hong Kong Branch
SMBC Capital Markets (Asia) Limited
Hong Kong Branch
SMBC Capital Markets (Asia) Limited
SMBC Metro Investment Corp.
Manila Representative Office
SMBC Metro Investment Corp.
Manila Representative Office
Bangkok Branch
SBCS Co., Limited
Chonburi Exchange Office
Bangkok Branch
SBCS Co., Limited
Chonburi Exchange Office
Sumitomo Mitsui Banking
Sumitomo Mitsui Banking
Corporation Malaysia Berhad
Corporation Malaysia Berhad
Labuan Branch
Labuan Branch
Kuala Lumpur Office
Kuala Lumpur Office
SMBC SSC Sdn. Bhd.
SMBC SSC Sdn. Bhd.
Phnom Penh Representative Office
Phnom Penh Representative Office
Ho Chi Minh City Branch
Ho Chi Minh City Branch
Vietnam Export Import
Vietnam Export Import
Commercial Joint Stock Bank
Commercial Joint Stock Bank
Labuan Branch
Labuan Branch
Singapore Branch
Singapore Branch
PT Bank Sumitomo Mitsui Indonesia
PT. SBCS Indonesia
PT Bank Tabungan Pensiunan Nasional Tbk
PT Bank Sumitomo Mitsui Indonesia
PT. SBCS Indonesia
PT Bank Tabungan Pensiunan Nasional Tbk
Indicates branch or sub-branch of
Sumitomo Mitsui Banking Corporation (China) Limited
Indicates branch or sub-branch of
Sumitomo Mitsui Banking Corporation (China) Limited
The Americas
The Americas
Europe, Middle East and Africa
Europe, Middle East and Africa
Houston Representative Office
Houston Representative Office
Mexico City
Representative Office
Mexico City
Representative Office
Cayman Branch
Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Cayman Branch
Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Bogota Representative Office
Bogota Representative Office
Lima Representative Office
Lima Representative Office
Banco Sumitomo Mitsui Brasileiro S.A.
Banco Sumitomo Mitsui Brasileiro S.A.
Santiago Representative Office
Santiago Representative Office
■ New York Branch
■ New York Branch
SMBC Capital Markets, Inc.
SMBC Capital Markets, Inc.
SMBC Leasing and Finance, Inc.
SMBC Leasing and Finance, Inc.
SMBC Nikko Securities America, Inc.
SMBC Nikko Securities America, Inc.
■ Los Angeles Branch
■ Los Angeles Branch
■ San Francisco Branch
■ San Francisco Branch
■ Houston Representative Office
■ Houston Representative Office
■ Mexico City Representative Office
■ Mexico City Representative Office
■ Bogota Representative Office
■ Bogota Representative Office
■ Lima Representative Office
■ Lima Representative Office
■ Santiago Representative Office
■ Santiago Representative Office
■ Cayman Branch
■ Cayman Branch
■ Manufacturers Bank
■ Manufacturers Bank
■ Sumitomo Mitsui Banking Corporation of
■ Sumitomo Mitsui Banking Corporation of
Canada
■ Banco Sumitomo Mitsui Brasileiro S.A.
■ Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
■ Banco Sumitomo Mitsui Brasileiro S.A.
■ Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Canada
Europe Limited Paris Branch
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited
Europe Limited
SMBC Nikko Capital Markets Limited
SMBC Nikko Capital Markets Limited
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Paris Branch
■ Sumitomo Mitsui Banking Corporation
Europe Limited Milan Branch
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Amsterdam Branch
Europe Limited Amsterdam Branch
■ Düsseldorf Branch
■ Brussels Branch
■ Madrid Representative Office
■ Prague Representative Office
■ Düsseldorf Branch
■ Brussels Branch
■ Madrid Representative Office
■ Prague Representative Office
Europe Limited Milan Branch
■ ZAO Sumitomo Mitsui Rus Bank
■ Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
■ ZAO Sumitomo Mitsui Rus Bank
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Europe Limited Moscow Representative
Europe Limited Moscow Representative
Office
Office
■ Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
■ Dubai Branch
■ Dubai Branch
■ Istanbul Representative Office
■ Istanbul Representative Office
■ Doha QFC Office
■ Doha QFC Office
■ Bahrain Representative Office
■ Bahrain Representative Office
■ Johannesburg Representative Office
■ Johannesburg Representative Office
■ Tehran Representative Office
■ Tehran Representative Office
■ Cairo Representative Office
■ Cairo Representative Office
253
SMFG 2013 254
SMFG 2013 www.smfg.co.jp/english
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