ANNUAL REPORT
YEAR ENDED MARCH 31, 2014
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CONTENTS
• 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
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• Group Companies.................................................. 18
• Financial Highlights ................................................ 21
• Financial Review .................................................... 25
• Risk Management .................................................. 33
• Corporate Social Responsibility (CSR) .................... 50
• Initiatives for Enhancing Customer Satisfaction (CS)
and Quality ........................................................... 52
• Corporate Governance .......................................... 53
• Internal Audit System ............................................. 54
• Compliance ........................................................... 55
• Environmental Preservation Initiatives ..................... 57
• Social Contribution Activities .................................. 61
• Human Resources ................................................. 65
• Financial Section and Corporate Data .................... 71
Financial Data.......................................................................... 72
Capital Ratio Information ......................................................... 180
Compensation......................................................................... 254
Corporate Data ...................................................................... 261
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.
August 2014
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 2014
Message from Top Management
Dear Fellow Stakeholders,
We sincerely thank you for your continued support and patronage. We would like to present the
initiatives we implemented in fiscal 2013 (fiscal year ended March 2014) and our management
policies going forward.
Principal Initiatives in Fiscal 2013
In fiscal 2013, the Japanese economy continued to
recover moderately as capital spending increased on
improved corporate earnings, and consumer spending
stayed firm reflecting an improvement in employment
and household income, among other factors. Although
some emerging countries experienced an economic
slowdown, overall, the global economy also continued to
recover mainly due to an economic pickup in developed
countries, including a continued moderate recovery in
the U.S. and an improvement in Europe.
Against this backdrop, we had set fiscal 2013 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 take
on the challenge of innovation for our next leap forward.”
We continued to proactively support the revitalization
of the Japanese economy through financing, and
implemented initiatives to accommodate changes in the
financial needs of our clients and business environment
in order to achieve our medium- to long-term growth.
Specifically, in the consumer business, in May 2013,
we launched on a trial basis a bank-securities integration
model between SMBC and SMBC Nikko Securities to
better meet the needs of our consumer clients for asset
management and increased the number of trial offices in
October 2013. In addition, we acquired Société Générale
Private Banking Japan and commenced its operation as
SMBC Trust Bank, a wholly-owned subsidiary of SMBC,
on October 1, 2013, to strengthen our wealth manage-
ment business.
In the corporate business, SMBC actively extended
loans by utilizing the loan support program of the Bank
of Japan and through other measures, and also sup-
ported growth industries by investing in a regenerative
medicine fund and an agricultural fund, and arranging
project finance for solar energy projects. Furthermore, in
November 2013, we established a new bank-securities
dual-role department within SMBC, functioning also as
a department of SMBC Nikko Securities, and enhanced
our capability to address various needs of our corporate
clients such as for loans, corporate bond issuance, new
share issuance, and M&As through one-stop services.
In the international business, we continued to
increase our overseas loan balance and diversified our
foreign currency funding for the sustainable growth of our
business, and also obtained FHC status in the U.S. We
also expanded our global network. SMBC and SMBC
(China) established six representative offices in emerging
markets mainly in Asia, and Sumitomo Mitsui Finance
& Leasing and SMBC Consumer Finance set up offices
in China. Moreover, we made progress in our Multi-
Franchise strategy, which calls for firmly establishing
Koichi Miyata
President
Sumitomo Mitsui Financial Group, Inc.
2
SMFG 2014
a full-scale commercial banking franchise in Asia and
other rapidly growing emerging markets. As part of this
strategy, we acquired a stake in PT Bank Tabungan
Pensiunan Nasional Tbk in Indonesia. Furthermore, we
expanded our U.S. business and diversified our busi-
ness portfolio by acquiring the ninth largest railcar leasing
company in the U.S. in December 2013, which com-
menced its operation as SMBC Rail Services LLC.
We also continued to strengthen our corporate infra-
structure. We advanced human resources development
through personnel exchanges across borders, group
companies and business units, in addition to expanding
training programs.
In fiscal 2013, SMBC recorded net reversal of
total credit cost mainly due to individualized efforts to
assist borrowers to improve their business and financial
conditions. In addition, other group companies, such
as SMBC Nikko Securities, which increased equity com-
missions, showed steady results. As a result, SMFG’s
consolidated ordinary profit increased by ¥358.6 billion to
Management Policies Going Forward
-Overview of the Medium-term Management Plan-
We have launched a new medium-term management
plan for the three years from fiscal 2014 to 2016. The
new medium-term management plan was developed
as the first step toward realizing our vision for the
next decade: the growth of the SMFG group amid the
dynamically changing economic, financial and regula-
tory environment. In the next three years, we will further
evolve our client-centric business models, revise our
portfolio structure, and enhance our client base with
speed in order to achieve the sustainable growth of our
top-line profit and further increase our enterprise value.
◎ Vision for the next decade
In view of the changing business environment, including
the growth of Asia’s emerging countries, the aging and
shrinking Japanese population, and the global financial
regulatory reform, we have set our vision for the next
a record-high ¥1,432.3 billion and net income increased
decade as follows.
by ¥41.3 billion to a record-high ¥835.4 billion with an
ROE of 13.8%. We also achieved all of the financial tar-
“We will become a global financial group that, by
earning the highest trust of our customers, leads the
gets of the medium-term management plan for the three
growth of Japan and the Asian region.”
years from fiscal 2011 to 2013.
Achievement of financial targets in the medium-term
management plan (fiscal 2011 to 2013)
Common Equity Tier 1
capital ratio*1
Mar. 2011 Mar. 2014
Mar. 2014
Target
Basel III fully-loaded basis*2 above 6%
10.3%
8%
Consolidated net
income RORA
Consolidated overhead
ratio
SMBC non-consolidated
overhead ratio
Overseas banking profit
ratio*3
FY3/2011
FY3/2014
FY3/2014
Target
0.8%
1.4%
0.8%
52.5%
53.0%
50%-55%
45.6%
47.9%
45%–50%
23.3%
33.0%
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
Takeshi Kunibe
President and CEO
Sumitomo Mitsui Banking Corporation
3
SMFG 2014
Specifically, we aim to achieve the following three
under the newly launched marketing structure for one-
points.
● We will become a truly Asia-centric institution.
● We will develop the best-in-class earnings base in
Japan.
● We will realize true globalization and continue to
evolve our business model.
◎ Three-year management goals
We have also set the following four management goals of
the three-year medium-term management plan as the first
step toward realizing our vision for the next decade.
● Develop and evolve client-centric business models
for main domestic and international businesses
● Build a platform for realizing Asia-centric operations
and capture growth opportunities
● Realize sustainable growth of top-line profit while
maintaining soundness and profitability
● Upgrade corporate infrastructure to support next
stage of growth
stop services. At the same time, we seek to proactively
contribute to the revitalization of the Japanese economy
by nurturing and supporting growth industries and
companies.
For individual clients, whose needs are changing due
to the accelerated shift from savings to investment and
changing lifestyles, we will meet their needs through a
group-wide effort. Specifically, we will expand the bank-
securities integration model between SMBC and SMBC
Nikko Securities, leveraging their respective strengths
of a broad client base and a high advisory capability.
Further, we will strengthen our unique private banking
business model combining the capabilities of our group
companies. In the consumer finance and credit card
businesses, we aim to win the top share in the domestic
markets and manage the businesses on a group basis.
Specifically, SMBC, SMBC Consumer Finance and Mobit
The initiatives we will implement are as follows.
will leverage their strengths as major players in the con-
○ Develop and evolve client-centric business models
for main domestic and international businesses
sumer finance business and promote their own brand
strategies. In the credit card business, Sumitomo Mitsui
Card and Cedyna will harness their respective strengths
We will develop new client-centric business models and
as bank-based and retailer-based credit card companies.
implement strategies with speed in order to create a
For globally operating non-Japanese corporate
stronger franchise both domestically and internation-
clients, we will enhance our capability to address their
ally and enhance our capability to address the needs
needs by expanding our global network, while enhancing
of our clients, which are becoming more diverse and
our product line-up and promoting cross-selling. Further,
sophisticated.
we will establish a group-wide framework, centered on
For our large corporate clients, whose activities
SMBC and SMBC Nikko Securities, to enhance our abil-
are becoming more global and cross-border, we are
ity to originate and distribute financial products to our
creating a unique business model to meet their needs,
institutional investors.
thereby enhancing our business base. Specifically, we
We will utilize information and communication
are strengthening the collaboration between SMBC and
technology (ICT) and build on our transaction banking
SMBC Nikko Securities and accelerating the integration
business, both necessary underpinnings for creating new
of the business activities of domestic and international
businesses, to meet the needs of our clients. We will
offices for a more seamless operation. Further, we will
offer new leading-edge services through various mea-
offer higher quality services to a wider range of clients
sures, including alliances with leading ICT players.
by leveraging our extensive knowledge of domestic and
overseas industries.
For medium and small-sized corporate clients, we
○ Build a platform for realizing Asia-centric operations
and capture growth opportunities
will meet the financial needs of each individual company
The enhancement of our Asia business is the prin-
while comprehensively addressing the needs of business
cipal strategy for the whole group. To this end, we will
owners, both as corporate managers and as individuals,
steadily build a business platform in Asia by prioritize the
4
SMFG 2014
allocation of resources, including human resources and
infrastructure, to the region. Specifically, we will increase
our group’s presence in Asia through the development
and expansion of our existing businesses and the accel-
eration of our Multi-Franchise strategy.
○ Realize sustainable growth of top-line profit while
maintaining soundness and profitability
Underpinned by the stable financial base built during
the previous years, we will focus more on growth in the
coming years. We will achieve the sustainable growth of
our consolidated gross profit by developing our business
models and allocating resources in growth fields.
○ Upgrade corporate infrastructure to support next
stage of growth
We will strengthen our management platform to sup-
port the global growth of our business. Specifically, we
believe the diversity of human resources is a source of
competitiveness, and SMBC has established “Diversity
and Inclusion Committee” and set a target for the per-
centage of women in managerial positions to be 20%
by the end of fiscal 2020. We are also upgrading our risk
management system and strengthening our compliance
framework by streamlining the anti-money laundering
system, among other measures.
◎ Financial targets
We have five financial targets as shown below.
We aim to realize the steady growth of our top-line
profit, while focusing on profitability and efficiency as
demonstrated by our newly established consolidated
ROE target of around 10%.
Financial targets for fiscal 2016
(SMFG consolidated basis)
Growth
Growth rate of Consolidated gross profit
Around +15%*1
Consolidated ROE
Profitability
Consolidated net income RORA
Around 10%
Around 1%
Consolidated overhead ratio
In the mid 50%
Soundness
Common Equity Tier 1 Capital Ratio*2
Around 10%
*1 Fiscal 2016 targeted consolidated gross profit in comparison with fiscal 2013
figure.
*2 Basel III fully-loaded basis (based on the definition as of March 31, 2019)
◎ Capital and shareholder return policies
Hitherto, the policy of SMFG was to steadily increase
returns to shareholders through the sustainable growth
of our enterprise value, while enhancing our capital to
maintain financial soundness in light of the public nature
of our business as a bank holding company, and to
realize a payout ratio of over 20% on a consolidated
net income basis. In line with this policy, we decided to
pay an ordinary dividend per share on common stock of
¥120 for fiscal 2013, a year-on-year increase of ¥10.
Going forward, we aim to achieve a sustainable
increase in shareholder value by realizing higher profit-
ability and growth through investments for the future.
We also intend to enhance shareholder return by imple-
menting measures such as raising dividend per share in
a stable manner.
For fiscal 2014, we forecast consolidated ordinary
profit of ¥1,110 billion and net income of ¥680 billion,
and an annual dividend per share of ¥120, the same as
in fiscal 2013 and the half of which, ¥60, 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.
August 2014
Koichi Miyata
President
Sumitomo Mitsui
Financial Group, Inc.
Takeshi Kunibe
President and CEO
Sumitomo Mitsui
Banking Corporation
5
SMFG 2014
Business Overview
■ Consumer Banking
SMFG group companies work cooperatively to provide better
and highly appreciated services for individual clients.
In April 2014, SMBC reviewed and improved its marketing
system to appropriately accommodate individual clients’ diversi-
fying financial needs, reflecting the accelerated trend of “Saving
to Investment,” at the times of major inheritance and changes
in clients’ lifestyles. Under the new system, SMBC strives to
In May 2013, we began trial business operations under the
new business promotion model (“Integrated model for retail in
banking and securities businesses”) which makes maximum
utilization of the respective characteristics of SMBC and SMBC
Nikko Securities. As clients responded positively to such new
business operations, we plan to increase the number of branch
offices under new business operations for the scheduled imple-
mentation in all branch offices by the end of fiscal 2014. We,
the SMFG Group, will continue to provide high-value services to
enhance its products and services to accommodate the diverse
clients.
needs of individual clients by giving even further attention to
details.
Asset Management
SMBC has a wide range of investment
trust products to meet the diversifying
asset management needs of its clients.
In fiscal 2013, we enhanced our port-
folio for publicly offered investment trust
in Japan by implementing investment
funds, including bonds denominated in
U.S. dollars, high-yielding stocks and
REIT; investment funds for domestic corporate stocks which
benefited from the “Abenomics” growth strategy; and balanced
funds assuming investment needs due to NISA.
As for deposits in foreign currencies, we added to the port-
folio with standard medium- to long-term fixed-term deposits
denominated in foreign currency (commonly called “Nice Flight”)
(in U.S. or Australian dollars) in 2013, in order to be able to
accommodate clients’ needs for the management of assets in
foreign currencies in the medium- to long-term.
We accommodate clients’ needs by implementing mea-
sures 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 2013, we began offering, for the first time for
yen-denominated bonds, the “Green Bond” which supports
the realization of an environmentally conscious society. In order
for more clients to be able to capitalize our product of “SMBC
Fund Wrap” (the discretionary management through investment
trust taking into account clients’ particular needs) for their asset
management, we decided to lower the minimum requirement
for initial contract amount from ¥10 million to ¥3 million for that
product.
SMBC and SMBC Nikko Securities strive to provide
products and services able to accommodate individual clients’
diverse needs by taking advantage of both companies’ know-
how for the consulting business accumulated over the years
and through integration of their clients base and office networks.
6
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, the internet or the telephone by consulting with
experienced operators. In fiscal 2013, we began handling the
permanent life insurance, which ensures the security for death
and disability for a lifetime and enables savings for the future,
and also individual variable annuity insurance denominated
in foreign currency to accommodate clients’ needs for asset
growth while protecting their valuable assets from inflation due
to economic recovery and growth in the future. In addition, we
meet the inheritance-related needs of clients by offering tes-
tamentary trust services for drafting, storage and execution of
wills, including “inheritance disposition” services by assisting
with complicated procedures required for inheritance or “Relay
of Trust to Family” services enabling clients and family to regu-
larly receive funds.
Consumer Loans and Settlement
In February 2014, SMBC began providing the “Housing Loan
with special provision for partial exemption for payments in
case of natural disasters” and added another special provision
of “Guaranteeing the balance.” In October 2013, we released
the “Housing loan with major illnesses security insurance” by
raising the eligible age to 55 for the coverage of eight major
illnesses (our popular loan product with provision which cov-
ers eight major illnesses (three potentially fatal and five serious
and chronic illnesses)); and by also increasing the coverage
SMFG 2014
for daily illnesses and injuries. In addition, we handle the “Life
Event Support Pack” as the card loan with special interest rates
especially made for clients who plan to take housing loans, in
order to accommodate financial needs for such as childbirth,
education or renovation after acquiring a house. We are work-
ing to develop products and enhance our services in order to
accommodate the diverse needs of clients.
Topics
◆ Extension of Business Hours (Weeknights and
Holidays)
To enhance services for individual clients, SMBC has
branches with extended business hours for weekdays and
holidays.
In April 2014, we newly added 26 branches with
extended business hours for weekdays and holidays, in addi-
tion to 74 branches (resulting in a total of 100 such branches
throughout Japan).
As for any other branches, we periodically hold consulta-
tion sessions on holidays in order to appropriately accom-
modate diverse lifestyles of clients.
We also substantially improved the convenience 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 meticu-
lous support 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., the total loan
balance as of March 2014 has exceeded
¥460 billion due to the steady increase
of loans. Further, in October 2013, a new
series of television commercials started
to be on air, emphasizing the simplicity of
application for card loans.
◆ Improvement of the Call Center System
Clients are able to easily contact and access SMBC call
centers to accommodate their diverse financial needs. We
reviewed the call center system in April 2014 in order for our
clients to be fully satisfied with our services. In particular, we
clearly divided roles and responsibilities of the call center
operations and developed the system to contribute to cli-
ents satisfaction. Accordingly, we established the Remote
Business Department which is the call center specializing in
“out bound” business of providing comprehensive financial
consultations on telephone to those clients who did not have
opportunities to discuss with the bank on effective utilization
of their assets on daily basis. Another call center specializes
in “in bound” business of promptly responding to clients’
inquiries.
For those clients who are busy at work and unable to
go down to the bank, we provide consultation services by
telephone on Saturdays, Sundays and evenings. We will
fulfill new and challenging roles and responsibilities of the call
centers in order to make clients satisfied.
7
SMFG 2014
■ Services for corporate clients
Providing funding to medium-sized compa-
nies and SMEs
SMBC implements appropriate measures for finance facilita-
tion and economic vitalization by meticulously understanding
circumstances of each client and making diverse proposals for
finance facilitation, as we strongly believe that our social respon-
sibilities 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 provide funds and support the manage-
ment 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.
We provided loans to companies engaged in cloud com-
puting and recycling businesses through the “Growth Potential
Evaluation Loan” which was launched for the purpose of
strengthening lending to clients of growing companies. A ven-
ture fund, which was jointly established in April 2012 by SMBC
and NEC group for the purpose of supporting technology ven-
ture companies since their establishment, invested in venture
companies of communications of next generations and of life
science-related businesses.
SMBC and the Group are committed to supporting growing
companies while cooperatively working with diverse external
entities by investing agricultural companies through SMBC
Agricultural Fund invested in July 2013.
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
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 advisory
companies and one sponsoring company. As of March 2014,
the IPO Navigator is registered by clients of approximately 750
companies.
IPO Seminars, which have been regularly held since
February 2011 by inviting business managers of IPO companies
to speak at the seminars, have been received positively by par-
ticipants who plan to make an initial public offering.
In fiscal 2013, Mr. Shuichi Takenaga, the president of
Aucfan Co., Ltd. (SMBC Nikko Securities acted as the lead
manager for the listing on the Tokyo Stock Exchange Mothers
market in April 2013) and Mr. Norimichi Soga, the president
of Nitta Gelatin Inc. (listed on the
Tokyo Stock Exchange, Second
in
Section and First Section
December 2011 and December
2012, respectively) were invited
as speakers at the seminars. The
seminars were well received by
participants.
SMBC and SMBC Nikko
Securities continue to support
clients who wish to go public.
Development of solutions for clients dealing
with environment, risk management and food
safety issues
SMBC develops solutions for clients dealing with diverse social
issues, such as of environmental problems for resource and
energy conservation, or global warming; countermeasures for
natural disasters; or ensuring food safety.
In 2006, SMBC offered the “SMBC-ECO Loan” for SMEs
which obtained the certification for environment management
system; and Japan Research Institute subsequently developed
the “SMBC Environmental Assessment Loans and Private
Placement Bonds” to assess and rate the measures taken by
clients for environment, and determine terms and conditions for
loans according to the rating.
Subsequently, we derived from the similar arrangement to
enhance the assessment-type loan products such as “SMBC
Sustainable Building Assessment Loans and Private Bonds,”
“SMBC Food and Agriculture Assessment Loans and Private
Placement Bonds,” “SMBC Business Sustainability Assessment
Loans and Private Placement Bonds” and “SMBC Sustainability
Assessment Loans and Private Placement Bonds,” for support-
ing clients to promote their initiatives for social issues.
As of March 2014, the amount of assessment-type loans
provided has exceeded JPY 1 trillion.
We will continue to support clients for their further advance-
ment through development of these solutions.
8
SMFG 2014
FY2008: “SMBC Environmental Assessment
Loans and Private Placement Bonds”
which assess the measures taken by
clients for environment
Basic policy for finance facilitation
FY2010: “SMBC Environmental Assessment
Loans and Private Placement Bonds,
eco Value-Up”
FY2011: “SMBC Food and Agriculture
Assessment Loans and Private
Placement Bonds”
“SMBC Sustainable Building
Assessment Loans and Private
Placement Bonds”
“SMBC Business Sustainability
Assessment Loans and Private
Placement Bonds”
FY2013: “SMBC Sustainability Assessment
Loans and Private Placement Bonds”
which assesses the measures taken
by clients for safety and security of
food, and agriculture
which assesses environment-
friendliness and measures taken for
risk management for the building
owned or to be constructed by clients
which assesses the measures taken
by clients for business sustainability
in the event of emergencies such as
earthquakes, floods, etc.
which assesses and supports the mea-
sures taken for Environment, Society,
and Governance (ESG) and appropriate-
ness of information disclosure
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.”
SME and
individual clients
● Changing terms and
conditions of a loan
● New borrowing
● Management
consultation and
management support
● Complaints and
consultation
● Corporate Business
Office
● Areas
● Branches, etc.
Person in charge
for consultation of
finance facilitation
Person in charge for
receiving complaints
for finance facilitation
Consultation desk for
receiving complaints
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 guidance 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 applica-
tion 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
7. We appropriately respond as to guarantee for business
manager in accordance with the “Guidelines for Guarantee for
Business Manager.”
System improvement
Head office and branches of SMBC continue to provide consul-
tation services in an integrated manner.
● Each department of
the head office
Affiliation
Affiliation
Council for finance
facilitation
Middle Market/
Retail Finance
Facilitation Department
Planning and management
of measures associated
with finance facilitation
Information sharing and
discussions among officers
in charge of Wholesale/
Retail Units, Risk
Management Unit and
relevant departments
Affiliation
● External organizations
(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
● External experts/professionals
(cid:127) SMBC Consulting
(cid:127)
(cid:127)
Certified tax accountants
Certified public accountants, etc.
9
SMFG 2014 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
education of universities” and “industrial affiliated needs of
clients.”
Specifically, SMBC cooperates with each university to sup-
port 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 “mar-
keting 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 expanding into overseas markets
increases, clients’ needs for not limited to fund procurement and
management but also for understanding of the local business
customs, cultures and respective systems are further increasing.
SMBC’s Global Advisory Department responds, in an
integrated manner, to resolving issues for clients by transmit-
ting overseas information 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 developed their business in overseas,
we provide high-quality support and solutions for their business
expansion and business reorganizational needs. Further, we
also support clients’ general foreign exchange transactions by
giving advices with respect to their trading transactions or hold-
ing practical 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 products in order to accommodate the needs of
clients for financing and resolving management issues; and we
also provide solutions for business referrals (as explained below),
overseas business development, or support for business suc-
cession (please refer to p.12 for “Support for business and asset
succession.”) 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 “business
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, and
holding the “Business Negotiation Session”* of specific subject
matter to refer or introduce a group of clients.
* In December 2013, the “Agribusiness-Matching” was held.
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 to provide support and solutions
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
by making an alliance with the Industrial Technology Research
Institute in Taiwan, 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 2014
including the Miyagi Prefecture which has executed the indus-
trial development cooperation agreement with SMBC; and we
also support economic recovery of the affected areas through
transactions with clients who utilize the special reconstruction
district system.
Furthermore, since 2010, SMBC has executed business
alliance agreements to support overseas businesses with THE
MINATO BANK, LTD., Kansai Urban Banking Corporation, Mie
Bank, Ltd. and six other banks.
Topics
◆ SMBC Agricultural Fund
In response to the measures taken by the government in
easing regulations in the agriculture sector, agricultural cor-
porations are expanding and the number of companies newly
entering into the agriculture sector are increasing. As SMBC
considers agriculture as a growing sector, SMBC and SMBC
Venture Capital invested in the “SMBC Agricultural Fund” in
July 2013.
In November 2013, an investment was made to
Kajitsudo Co., Ltd, in Kumamoto Prefecture as the first proj-
ect for the “SMBC Agricultural Fund.”
In addition to investments made to the fund, SMBC
enhances support for fund procurement by setting credit lines
for growth sectors including agriculture and utilizing public
loan insurance system.
SMBC provides support to increase competitiveness for
Japanese agriculture not only in financing but also in man-
agement by providing solutions such as business-matching
and consultation provided by the Japan Research Institute.
Measures for the Greater China region (People’s
Republic of China, Hong Kong and Taiwan)
In order to be able to provide attentive services for integrated
domestic and overseas offices by taking advantage of know-
how accumulated in Japan for the Greater China region where
many Japanese companies have expanded into, SMBC’s
domestic department has proceeded to plan and promote
transactions with Japanese companies for Sumitomo Mitsui
Banking Corporation (China) Limited, and Hong Kong and Taipei
branches since 2010 and 2011, respectively.
The Free Trade Experimental District was established in
Shanghai in September 2013 to proceed with liberalization in
the areas of finance and trading. SMBC (China) established a
representative office in that district in February 2014, and we are
accommodating clients’ new needs for such as cross-border
fund management and support for new investments in deregu-
lated businesses.
In February 2014, a representative office was also opened in
Kunshan in Jiangsu Province. This brought our total number of
offices in China to 16 offices, consisting of 9 branches, 6 repre-
sentative offices and the Dalian Representative Office of SMBC.
Together with the Hong Kong and Taipei branches, we continue
to develop a solid network in the Greater China region. As for
additional internationalized renminbi business, the South China
Department of Transaction Business Division established in
Hong Kong mainly handles such business, the business results
of which are steadily increasing. We will continue to provide
up-to-date information and services in Japan and overseas, and
focus to promote renminbi businesses.
SMBC strives to further improve its integrated services in
Japan and overseas while cooperating with the SMFG Group
companies that have expanded into the Greater China region
such as SMBC Nikko Securities, Sumitomo Mitsui Finance and
Leasing, and Sumitomo Mitsui Card.
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
overseas and accurate and timely information collection will
become necessary for such local government entities and
regional financial institutions. To serve such needs, we are form-
ing partnerships with local governments and regional financial
institutions using SMFG networks within Japan and overseas to
provide a wide range of services.
SMBC has been proactively involved since the conceptual
phase of the industrial development for the accumulation of
medical-related industries in Kobe and other areas.
We continue to financially assist the restoration plan of local
governments affected by the Great East Japan Earthquake,
11
SMFG 2014
■ 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 individ-
uals can facilitate succession of their important businesses and
assets, PAD provides support for business and asset transfers
for which we present proposals and provide information based
on our extensive experience and knowledge accumulated
over the years, and the additional expertise provided through
alliance partners with major tax accounting firms. Additionally,
PAD offers asset management and associated support services
which provide comprehensive financial services tailored to meet
the financial asset needs of high-net worth individuals. Further,
as part of our corporate employees business which support
HR and financial strategies of our corporate clients, PAD assists
with the development and management of benefit programs
and defined-contribution pension systems.
Business owners
High-net worth individuals
Head of Household
Shareholder
Customers
Sumitomo Mitsui Financial Group
Sumitomo Mitsui Banking Corporation
Corporate Business Office
Area/Branches
Private Advisory Division
Business
succession
needs
Asset
succession
needs
Asset
management
needs
Financial benefit
program needs
Revised
defined-contribution
pension plan needs
SMBC Nikko Securities
SMBC Barclays Department
SMBC Trust
Bank Limited
SMFG Group
companies
Outside specialists (major tax accounting firms and other professionals)
Barclays PLC
Support for Business and Asset Succession
PAD presents customized proposals, including testamentary
trust business, for clients who may be concerned or have
problems with succession of their businesses and assets. We
also offer a variety of seminars to 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 the client’s attitude towards finan-
cial assets, we offer comprehensive financial advice on asset
allocation and appropriate 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
0.51% stake
(as of May 2014)
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
Topics
In October 2013, SMBC was successful in making Société
Générale Private Banking Japan a wholly-owned subsidiary
of SMBC, renaming it as SMBC Trust Bank which provides a
portfolio of diverse investment products by taking advantage
of its trust-banking functions.
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, and it also supports employees to
realize their life plan.
Topics
Topics
In October 2013, SMBC assigned a “succession adviser” who
has the primary mission of providing support for specialized
field in inheritance business and passing on know-how. By
this assignment, we hope to improve the quality of its con-
sultation services by enhancing the proposal and resolution
capabilities associated with inheritance for the entire bank.
As part of reorganization of group companies associated
with defined contribution pension business, Japan Pension
Navigator Co., Ltd. and Nikko Pension Consulting Co., Ltd.
are scheduled to be merged in November 2014. We plan to
provide higher-value added services to clients by combining
human resources and know-how of both companies.
12
SMFG 2014
■ Investment Banking
SMFG offers and provides the forward-looking 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 operations in partnership with
the bank.
The Group was ranked 3rd in the “league table” for fiscal
2013 prepared by SMBC Nikko Securities based on information
provided by Thomson Reuters (Global Equity & Equity-Related;
Bookrunner in Japan) with a market share of 13.9%. It also
ranked 4th in the “M&A advisory services category for publicly
announced mergers involving Japanese companies,” with a
market share of 17.1% (Thomson Reuters). As for analyst rank-
ing, the SMBC Nikko Securities ranked overall 3rd for both
Institutional Investor magazine and Nikkei Veritas magazine.
Similarly, overseas businesses have steadily enhanced its struc-
ture by establishing a San Francisco office in October 2013, and
SMBC Nikko Securities obtained a mandate for several projects
such as becoming the lead manager for underwriting its first
global offering and collaborating with Moelis for large-scaled
cross-border mergers and acquisitions.
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 2013, the total number of
client referrals made reached approximately 5,200, an increase
of 23%, 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 2014
to 2016)
Based on the SMFG Medium-Term Management Plan starting
fiscal 2014, SMBC Nikko Securities plans to increase its expo-
sure in finance and securities markets in Japan and overseas by
promoting growth strategies, based on its concept of “Speed
and Scale,” and to strive to provide further value-added services
to clients.
• Retail unit: Expand the client base by aggressive injecting
resources and strengthening cooperation between banking
and securities operations while maintaining earning capacity.
• Wholesale Unit: Realization of competitive front-office
operational structure, increase of earning capacity for sales
and trading businesses, and selective and effective overseas
business expansion by taking advantage of SMBC’s business
operations and alliances.
Topics
◆ IFR Awards 2013 “Yen Bond House of the Year”
SMBC Nikko Securities won the “Yen Bond House of the
year 2013” award for securities companies with the liveli-
est profile in the Samurai bond
and Euroyen markets. The award
is made by the leading Thomson
Reuters financial services magazine
International Financing Review.
SMBC Nikko Capital
Markets. Limited (UK)*
SMBC Nikko Bank
(Luxembourg) S.A.
SMBC Nikko Investment
Consulting (Shanghai) Limited
SMBC Nikko Securities America, Inc. ,
San Francisco Branch*
SMBC Nikko Securities
America, Inc.*
London
Luxembourg
San Francisco
New York
Shanghai
Hong Kong
Singapore
Jakarta
Sydney
SMBC Nikko Securities (overseas offices)
*Sumitomo Mitsui Banking Corporation (overseas subsidiaries)
Sumitomo Mitsui Banking Corporation
(overseas offices)
SMBC Nikko Securities
(Singapore) Pte. Ltd.
P.T. Nikko Securities Indonesia
SMBC Nikko Capital
Markets Limited (Sydney)*
SMBC Nikko Securities
(Hong Kong) Limited
13
SMFG 2014
Topics
■ International Banking
◆ Initiatives for New Businesses
As the aging process in Japan further progresses, demand
for healthcare facilities has increased in recent years. In order
to provide financial support for care facilities which are the
important social infrastructure, SMBC has initiated health-
care REIT specializing in care facilities such as paid nursing
homes and serviced residences for the elderly. In November
2013, we established an asset management company for a
healthcare REIT, and we are in the process of preparing for
its listing.
Furthermore, to further enhance initiatives for growth
industries and to contribute to the recovery of the Japanese
economy, we have established the “Growth Industry Cluster,”
formerly placed within the Project Finance Department, as an
independent unit.
We are taking the initiative to create new businesses
in areas such as “New Energy,” “Environment,” “Water,”
“Resources,” “Healthcare” and “Agriculture”. We executed a
memorandum on agricultural matters with Bogor Agricultural
University, the largest agricultural University in Indonesia in
March 2014, and a memorandum primarily for the life sci-
ences, agriculture and food products with a regional gov-
ernment organization in Belgium in April 2014. SMBC will
continue to provide support for clients for increasing new
business opportunities in Japan and overseas by taking
advantage of its wide range of knowledge and the network
built over alliances among industry-government-academia.
Execution of a memorandum with Bogor
Agricultural University
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 a global commercial bank 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 EMEA.
Strengthening relationships with local finan-
cial institutions
SMBC continues to strengthen its relations with local banks
and banking organizations in emerging growth markets. In June
2013, the business alliance for supporting clients’ overseas
expansion entered with Absa Bank Limited, a South African
subsidiary of the Barclays Bank PLC of Great Britain, was
expanded to include up to 13 countries centering on Sub-
Sahara African region. In January 2014, we dispatched our
employees to ACLEDA Bank Plc., the largest private bank in
Cambodia, as part of our business linkage with ACLEDA Bank,
to support business operations of specialized sections of assist
foreign companies, including Japanese clients. In December
2013, we executed a memorandum of understanding with
Myanmar Banks Association (consisting of 25 major local banks
in Myanmar) with respect to the development of financial human
resources, to mutually plan and provide training curriculum and
seminars for employees of Myanmar Banks Association and
local banks in Myanmar.
Enhancing Initiatives for Asia
SMBC promotes the local development of “Multi-Franchise
Strategy” which broadly covers commercial banking business
for individual and corporate clients. In May 2013, we announced
the acquisition of up to 40% stake in PT Bank Tabungan
Pensiunan Nasional Tbk, Indonesia’s national pension sav-
ings bank, subsequently completed in March 2014. We will
proceed to diversify our business operations in Asia, including
Indonesia, by promoting and enhancing cooperation with Bank
Tabungan Pensiunan Nasional Tbk, leveraging its strength in
retail businesses.
Further, in March 2014, SMBC Malaysia Berhad began
its Islamic financial business operations, led by the Sumitomo
Mitsui Banking Corporation Europe. As Malaysia plays a lead-
ing role in the Islamic financial market in Asia, we will be able
to broadly accommodate clients’ needs by providing Islamic
financial services in Malaysia.
14
SMFG 2014
Expansion of overseas networks
SMBC is expanding its overseas networks, to provide further
services for Japanese corporate clients operating overseas and
to strengthen its capability to develop banking businesses in
emerging and growth markets.
SMBC provides support for clients’ global business devel-
opment by leveraging our expanding worldwide network.
Date of
establishment
Country
April 2013
Australia
Perth Branch
May 2013
Chile
Santiago Representative Office
May 2013
Thailand
Chonburi Exchange Office (changed
status to branch in April 2014)
October 2013
Mongolia
Ulaanbaatar Representative Office
January 2014
Ireland
February 2014
China
February 2014
China
March 2014
June 2014
United Arab
Emirates
Sumitomo Mitsui Banking Corporation
Europe Limited Dublin Branch
Sumitomo Mitsui Banking Corporation
(China) Limited Shanghai Pilot Free
Trade Zone Sub-Branch
Sumitomo Mitsui Banking Corporation
(China) Limited Kunshan Sub-Branch
Abu Dhabi Representative Office
Czech
Republic
Sumitomo Mitsui Banking Corporation
Europe Limited Prague Branch
Enhancement of Aircraft-Related Businesses
In April 2014, SMBC consolidated marketing functions for
aircraft-related businesses in its respective overseas regions by
establishing the Global Aircraft Finance Department in order to
globally promote its aircraft-related businesses. As the establish-
ment of this department promotes the business alliance with the
aircraft leasing company of SMBC Aviation Capital, we will strive
to further improve comprehensive financial services in aircraft
finance area for our Group.
Topics
◆ Acquisition of U.S. Railroad Freight Car Leasing
Company
In December 2013, SMBC acquired a major railroad freight
car leasing company in U.S. through SMBC’s leasing
subsidiary, SMBC Leasing and Finance, Inc. Its operations
commenced as SMBC Rail Services LLC. As the railway
transportation is superior compared to truck transportation
in terms of transportation efficiency and environmental con-
servation, needs for such railway transportation is increasing.
With the acquisition of this company, we will enhance our
railroad freight car leasing business in the United States
where its demand is expected to increase.
15
SMFG 2014
■ Treasury Markets
Topics
Through the Treasury Unit of SMBC, the Group offers higher
value-added services to meet the 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 through its network in
Japan and overseas to present its corporate clients with pro-
posals for hedging transactions taking into account changes in
the financial markets. Further, to improve the convenience of
market transactions, the Unit continues to develop 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 trends of the global financial
market by experts of diverse products such as interest-rate,
foreign-exchange and commodity derivatives.
Customers
Corporate Business Offices, Areas, 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)
◆ Responding to Clients’ Diversifying Needs for
Emerging Market Currency Transactions
We are committed to enhancing hedging schemes for cross-
border transactions through providing forward exchange
contracts for currencies of emerging countries in Asia and
presenting proposals for increasing fund efficiency. We also
take the initiative in providing information to clients on market
trends and currency regulations especially of Asia and Central
and South America, and holding seminars on emerging
economies and market trends presented by the analysts
residing in Asia.
◆ Expanded Online Foreign Exchange Transaction
Services
Having provided to over 15,000 clients the “i-Deal system,”
we continue to improve its convenience for clients. In March
2014, we began handling transactions in the prevailing mar-
ket rate of Chinese yuan, thereby accommodating clients’
requests. We will continue to respond attentively to clients’
needs by improving the price-quoting function and enhancing
the leave-order function.
■ Transaction Banking Business
Strengthening Transaction Banking Business
At SMBC, the “Transaction Business Division,” consisting of
the “Transaction Business Planning Department,” the “Global
Advisory Department,” the “Transaction Banking Department,”
the “Global Transaction Banking Department” and the “Asset
Finance Department,” is being established to enhance transac-
tion banking businesses.
The respective departments of the Transaction Business
Division integrally and flexibly provide support for diverse busi-
nesses associated with transaction banking for our domestic
and overseas clients in the medium- to long-term and from a
cross-departmental perspective.
Transaction Business
Identifying needs
Clients
Front office operations
Wholesale
Retail
International
Global Supply Chain
Finance Dept.
Providing information, solutions
Interbank Market
Fund and bond transactions
Transaction Business Division
Transaction Business
Planning Dept.
Mid-to-Long-Term Settlement Strategy,
Settlement Systems, Business Promotion Planning
Global Advisory Dept.
(Foreign exchange, overseas business advisory services)
Transaction Banking Dept.
Domestic exchange, domestic transaction solution services
Global Transaction Banking Dept.
Overseas transaction solution, global fund management services
Asset Finance Dept.
Transaction finance, 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-related departments/ Transaction-related group companies
16
SMFG 2014
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.
Topics
◆ New Treasury Management System of “SMAR&TS
Treasury”
In October 2013, SMBC began offering its new treasury
management system of “SMAR&TS Treasury,” which enables
forecasting future cash management and integrated manage-
ment of pooling, group-financing and netting, in addition to
monitoring current cash flow conditions of globally developed
group companies. We will continue to accommodate the
diverse needs of clients.
◆ Consecutively highly evaluated for customer sat-
isfaction survey of ASiAMONEY magazine
We were consecutively highly evaluated for the “Customer
Satisfaction for Cash Management Survey” in Asia and
Japan, annually conducted by the “ASiAMONEY magazine.”
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.
SMBC and SMBC Financial Link newly set up a specialized
desk in the bank to integrally provide “SMFG-BPO Services”
(BPO: Business Process Outsourcing) in order to appropriately
accommodate substantial needs for outsourcing administrative
services associated with fund collection and repayment.
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.
Additionally, for the yearly expanding EC market, we provide
diverse settlement solutions as one of core companies in charge
of transaction banking business for SMFG, by providing the
“Settlement Station” which collectively manages multiple means
of settlements.
Enhancing each Settlement System and
Settlement Infrastructure
It is imperative that we appropriately enhance the settlement
system and settlement infrastructure which support the
provision of secure settlement services for our clients. We
are involved in developing settlement system having a high
degree of security and convenience for such as the Japanese
Government Bond settlement cycle reform, in addition to ser-
vices for SWIFT* and BOJ-Net.
* 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
Number of Employees: 445
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: Akihiro Kitahara
Number of Employees: 14
17
SMFG 2014
Group Companies (as of March 31, 2014)
The companies of the Sumitomo Mitsui Financial Group (SMFG) primar-
ily conduct commercial banking through the following financial services:
leasing, securities, consumer finance, system development and data
processing.
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)
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: Commercial 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: 22,915
Number of branches and other business locations:
In Japan:
Branches:
1,540*
505
(Including 46 specialized deposit account branches)
150
Sub-branches:
Banking agencies:
4
Offices handling non-banking business: 24
857
Automated service centers:
41
Overseas:
16
Branches:
17
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, 2014)
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)
2014
Billions of yen
2012
2013
2011
For the Year:
Ordinary income .....
Ordinary profit .......
Net income .............
At Year-End:
¥8,640.7
Net assets...............
Total assets ............ 155,824.1
¥3,105.9
1,298.7
785.6
¥2,810.6
928.7
734.5
¥2,687.9
857.9
533.8
¥2,711.3
751.2
450.8
¥8,257.0
143,203.1
¥7,276.7
138,251.6
¥6,983.1
132,715.6
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, 2014)
R&I
JCR
Long-term Short-term
a–1
J–1+
A+
AA–
Financial Information (Years ended March 31)
2014
Billions of yen
2012
2013
2011
For the Year:
Leasing transaction
volume .................... ¥1,007.7
752.0
Operating revenue ....
55.9
Operating profit ........
¥855.1
754.6
48.6
¥770.9
816.8
59.4
¥800.8
812.8
50.2
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: 1,471
SMFG 2014
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: SMBC Nikko Securities Inc.
Business Profile: Securities
Establishment: June 15, 2009
Head Office: 3-1, Marunouchi 3-chome,
Chiyoda-ku, Tokyo
President & CEO: Tetsuya Kubo
Number of Employees: 7,685
www.smbcnikko.co.jp/en
Credit Ratings (as of June 30, 2014)
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)
2014
Billions of yen
2012
2013
2011
For the Year:
Operating revenue ...
Operating income ...
¥333.4
96.6
¥280.5
72.7
¥233.6
39.9
¥218.6
38.5
www.smbc-friend.co.jp
(Japanese only)
Company Name: SMBC Friend Securities Co., Ltd.
Business Profile: Securities
Establishment: March 2, 1948
Head Office: 7-12, Kabuto-cho, Nihonbashi,
Chuo-ku, Tokyo
President & CEO: Koichi Danno
Number of Employees: 1,878
Financial Information (Years ended March 31)
For the Year:
Operating revenue ...
Operating profit ......
2014
¥57.7
15.0
Billions of yen
2012
2013
¥59.6
18.0
¥47.5
8.3
2011
¥53.2
10.2
Company Name: Sumitomo Mitsui Card
Company, Limited
Business Profile: Credit card
Establishment: December 26, 1967
Head Office:
Tokyo Head Office: 1-2-20, Kaigan,
Minato-ku, Tokyo
Osaka Head Office: 4-5-15, Imab ashi,
www.smbc-card.com
(Japanese only)
Credit Ratings (as of June 30, 2014)
R&I
JCR
Long-term Short-term
a–1+
J–1+
AA–
AA–
Chuo-ku, Osaka
Financial Information (Years ended March 31)
President & CEO: Hideo Shimada
Number of Employees: 2,361
2014
Billions of yen
2012
2013
2011
For the Year:
Revenue from credit
card operations ........ ¥9,131.5
191.4
Operating revenue ......
Operating profit ..........
43.6
At Year-End:
Number of cardholders
(in thousands) ...........
22,994
¥8,194.6
185.6
44.7
¥7,560.6
182.2
43.1
¥6,896.2
185.2
32.6
22,400
21,647
20,770
19
SMFG 2014 www.cedyna.co.jp/english/
Company Name: Cedyna Financial Corporation
Business Profile: Credit card and installment
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: Satoru Nakanishi
Number of Employees: 3,061
Credit Ratings (as of June 30, 2014)
JCR
Long-term Short-term
J–1
A+
Financial Information (Years ended March 31)
For the Year:
Operating revenue ......
Operating profit (loss) ...
At Year-End:
Number of cardholders
(in thousands) ................
2014
Billions of yen
2012
2013
2011
¥160.0
10.7
¥164.0
13.4
¥176.2
(27.6)
¥203.2
0.8
18,412
19,480
21,091
22,513
www.smbc-cf.com/english/
Company Name: SMBC Consumer Finance Co., Ltd.
Business Profile: Consumer lending
Establishment: March 20, 1962
Head Office: 4-12-15, Ginza, Chuo-ku, Tokyo
President & CEO: Ryoji Yukino
Number of Employees: 2,136
Cooperation:
SHOCHIKU Co., Ltd.,
Kabuki-za Co., Ltd.
Credit Ratings (as of June 30, 2014)
Long-term Short-term
R&I
JCR
A
A–
Financial Information (Years ended March 31)
For the Year:
Operating revenue ....
Operating profit (loss) ...
2014
¥164.7
15.9
Billions of yen
2012
2013
¥164.6
42.3
¥172.2
(166.6)
¥187.5
(54.1)
—
—
2011
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.
Cedyna strives to become SMFG’s com-
prehensive payment finance company in the
consumer finance business by integrating the
credit card, consumer credit and financing
solution core businesses, and providing indi-
vidual clients with secure and convenient pay-
ment methods means for making payments.
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.
SMBC Consumer Finance strives to
become the kind of global consumer finance
company which “would be able to earn the
utmost trust of clients” by consistently and
sincerely working with clients as an expert in
the consumer finance business.
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: System development, data
processing, management
consulting and economic
research
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: 2,124
www.jri.co.jp/english/
Financial Information (Years ended March 31)
For the Year:
Operating revenue ....
Operating profit ........
2014
¥106.0
1.7
Billions of yen
2012
2013
¥96.2
1.8
¥87.5
0.8
2011
¥84.8
1.5
20
SMFG 2014 Financial Highlights
Sumitomo Mitsui Financial Group
◆ Consolidated
Year ended March 31
For the Year:
2014
2013
Total income ................................................................
Total expenses .............................................................
Net income ...................................................................
Comprehensive income ...............................................
¥ 4,647,109
3,224,414
835,357
1,303,295
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Risk-monitored loans ...................................................
Reserve for possible loan losses .................................
Net unrealized gains on other securities ......................
Number of employees ..................................................
¥ 9,005,019
161,534,387
1,320,695
747,536
1,404,992
66,475
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 .....................................................
/
15.51%
12.19%
10.63%
12.26%
7.21x
Per Share (Yen):
Net assets ....................................................................
Net income ...................................................................
Net income — diluted .................................................
¥5,323.87
611.45
611.14
¥ 4,326,809
3,262,775
794,059
1,458,107
¥ 8,443,218
148,696,800
1,687,049
928,866
1,121,598
64,635
/
14.71%
10.93%
9.38%
13.74%
6.44x
¥4,686.69
586.49
585.94
Millions of yen
2012
¥ 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
2011
2010
¥ 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
¥ 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
Notes: 1. “Net unrealized gains on other securities” represent the difference between the market prices and acquisition costs (or amortized costs) of “other securi-
ties.” 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 2014
◆ Nonconsolidated
Year ended March 31
For the Year:
2014
2013
Operating income ........................................................
Dividends on investments in subsidiaries and affiliates ...
Operating expenses .....................................................
Net income ...................................................................
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Capital stock ................................................................
Number of shares issued
¥ 220,309
206,833
25,256
189,018
¥4,653,766
6,279,799
2,337,895
¥ 179,560
165,441
24,341
147,981
¥4,641,005
6,266,864
2,337,895
Millions of yen
2012
¥ 181,372
166,272
24,902
149,919
¥4,527,629
6,153,461
2,337,895
2011
2010
¥ 222,217
206,865
24,467
191,539
¥4,842,914
6,237,655
2,337,895
¥ 133,379
118,818
16,641
66,176
¥4,805,574
6,152,774
2,337,895
Common stock .................................................... 1,414,055,625
Preferred stock ....................................................
—
Number of employees ..................................................
251
1,414,055,625
—
231
1,414,055,625
—
215
1,414,055,625
70,001
192
1,414,055,625
70,001
183
Selected Ratios:
Net assets ratio ............................................................
Return on Equity ..........................................................
Price Earnings Ratio .....................................................
Dividend payout ratio ...................................................
74.08%
4.07%
32.89x
89.52%
74.04%
3.23%
35.98x
114.36%
73.57%
3.27%
25.43x
92.55%
77.64%
4.02%
19.68x
76.09%
78.10%
1.59%
57.41x
213.41%
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 .................................................
3,299.16
¥3,290.23
¥3,317.44
¥3,282.75
¥3,256.32
120
/
/
/
/
/
/
/
/
/
134.04
133.98
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
—
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 2014
Sumitomo Mitsui Banking Corporation
◆ Consolidated
Year ended March 31
For the Year:
2014
2013
Total income ................................................................
Total expenses .............................................................
Net income ...................................................................
Comprehensive income ...............................................
¥ 3,108,619
1,816,681
785,687
1,174,292
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Risk-monitored loans ...................................................
Reserve for possible loan losses .................................
Net unrealized gains on other securities ......................
Number of employees ..................................................
¥ 8,640,763
155,824,141
1,166,764
623,876
1,315,157
48,824
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 ..........................................................
/
17.08%
13.43%
12.27%
10.92%
Per Share (Yen):
¥ 2,810,902
1,889,068
734,514
1,373,623
¥ 8,257,091
143,203,127
1,493,807
806,702
1,072,906
47,852
/
16.84%
12.69%
11.26%
11.72%
Millions of yen
2012
¥ 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%
2011
2010
¥ 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%
¥ 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%
Net assets ....................................................................
Net income ...................................................................
Net income — diluted .................................................
¥71,465.80
7,394.82
7,394.81
¥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
Notes: 1. “Net unrealized gains on other securities” represent the difference between the market prices and acquisition costs (or amortized costs) of “other securi-
ties.” 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 2014
◆ Nonconsolidated
Year ended March 31
For the Year:
Total income ................................................................
Total expenses .............................................................
Net income ...................................................................
(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 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 ...................................................................
Net income — diluted .................................................
2014
2013
Millions of yen
2012
2011
2010
¥ 2,344,948
1,398,464
605,255
¥ 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
1,558,184
812,438
812,438
745,745
¥ 7,077,360
135,966,434
98,157,844
63,370,678
27,317,549
837,221
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
881,413
472,548
1,284,779
3,108,012
143,469
1,420,372
1,770,996
106,248
70
22,915
/
18.30%
14.02%
12.47%
8.88%
75.92%
47.9%
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%
¥66,611.45
¥61,689.83
¥53,738.81
¥50,317.86
¥48,799.31
4,325
/
5,696.60
—
1,689
/
5,814.59
—
1,485
/
4,498.64
—
1,388
88,500
3,905.80
—
1,620
88,500
4,051.75
—
Notes: 1. Please refer to page 170 for the definitions of risk-monitored loans and problem assets based on the Financial Reconstruction Act.
2. “Net unrealized gains on other securities” represent the difference between the market prices and acquisition costs (or amortized costs) of “other securi-
ties.” 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 2014
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, 2014.
1. Operating Results
Operating results for fiscal 2013 include the results of 324
consolidated subsidiaries and 46 subsidiaries and affiliates
accounted for by the equity method.
In fiscal 2013, consolidated gross profit increased
by ¥105.3 billion year-on-year to ¥2,898.2 billion. This
was largely due to an increase in profits at SMBC Nikko
Securities driven by a surge in equity commissions, reflect-
ing an improved market environment, and steady results of
other major subsidiaries such as Sumitomo Mitsui Finance
and Leasing. Ordinary profit after adjustment for general
and administrative expenses, total credit cost, net gains on
stocks, equity in gains of affiliates and other items increased
by ¥358.5 billion year-on-year to ¥1,432.3 billion. Net
income after adjustment for extraordinary gains (losses) and
income taxes increased by ¥41.2 billion to ¥835.3 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 ...................................
2014 (A)
2013 (B)
324
46
323
44
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 ...........................................................................
Net total credit cost .......................................................................................................
Credit costs ...............................................................................................................
Gains on reversal of reserve for possible loan losses ...............................................
Recoveries of written-off claims ................................................................................
Gains (losses) on stocks ................................................................................................
Equity in gains of affiliates .............................................................................................
Net other expenses .......................................................................................................
Ordinary profit ...............................................................................................................
Extraordinary gains (losses)...........................................................................................
Losses on disposal of fixed assets ...........................................................................
Losses on impairment of fixed assets .......................................................................
Income before income taxes and minority interests .....................................................
Income taxes-current ...................................................................................................
Income taxes-deferred ..................................................................................................
Income before minority interests ...................................................................................
Minority interests in net income ...................................................................................
Net income ....................................................................................................................
[Reference]
Consolidated net business profit (Billions of yen) .........................................................
2014 (A)
¥2,898,233
1,484,169
2,472
984,589
211,881
215,120
(1,569,945)
49,073
(96,797)
136,212
9,657
89,243
10,241
(44,514)
1,432,332
(9,637)
(8,595)
(3,348)
1,422,694
(290,186)
(168,618)
963,889
(128,532)
¥ 835,357
Millions of yen
2013 (B)
¥2,792,891
1,392,636
1,871
908,168
166,617
323,597
(1,496,294)
(173,115)
(183,552)
—
10,436
(20,973)
5,309
(34,072)
1,073,745
(9,711)
(5,480)
(4,314)
1,064,033
(279,898)
133,930
918,065
(124,006)
¥ 794,059
Increase (decrease)
(A) – (B)
1
2
Increase (decrease)
(A) – (B)
¥105,342
91,533
601
76,421
45,264
(108,477)
(73,651)
222,188
86,755
136,212
(779)
110,216
4,932
(10,442)
358,587
74
(3,115)
966
358,661
(10,288)
(302,548)
45,824
(4,526)
¥ 41,298
¥ 1,242.4
¥ 1,166.2
¥ 76.2
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. Credit costs = Write-off of loans + Provision for reserve for possible loan losses + Others (Losses on sales of delinquent loans)
3. 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
SMFG 2014
Deposits as of March 31, 2014 increased by ¥5,250.1
billion year-on-year to ¥94,331.9 billion, and negotiable cer-
tificates of deposit increased by ¥1,957.8 billion to ¥13,713.5
billion.
Loans and bills discounted as of March 31, 2014 totaled
¥68,227.6 billion, a year-on-year increase of ¥2,595.5 billion,
as lending increased in Asia and the Americas, and securities
Assets, Liabilities and Net Assets
totaled ¥27,152.7 billion, a decrease of ¥14,153.9 billion.
Net assets were ¥9,005.0 billion. Of this amount,
stockholders’ equity was ¥6,401.2 billion mainly due to the
recording of net income and the payment of cash dividends.
March 31
Assets ............................................................................................................................ ¥161,534,387
27,152,781
68,227,688
152,529,368
94,331,925
13,713,539
9,005,019
6,401,215
Securities ...................................................................................................................
Loans and bills discounted ........................................................................................
Liabilities ........................................................................................................................
Deposits.....................................................................................................................
Negotiable certificates of deposit ..............................................................................
Net assets .....................................................................................................................
Stockholder’s equity ..................................................................................................
2014 (A)
Millions of yen
2013 (B)
¥148,696,800
41,306,731
65,632,091
140,253,582
89,081,811
11,755,654
8,443,218
5,680,627
Increase (decrease)
(A) – (B)
¥12,837,587
(14,153,950)
2,595,597
12,275,786
5,250,114
1,957,885
561,801
720,588
2. Unrealized Gains (Losses) on Securities
Net unrealized gains on securities as of March 31, 2014
increased by ¥256.0 billion year-on-year to ¥1,438.7 billion,
as a result of an increase in unrealized gains on stocks
reflecting the improvement in the Japanese stock market.
Unrealized Gains (Losses) on Securities
Consolidated
balance sheet
amount
Net unrealized
gains (losses)
(A)
March 31
Held-to-maturity securities ................. ¥ 4,536,849 ¥ 33,797
Other securities .................................. 22,866,288
1,404,992
Stocks .............................................
1,131,143
3,185,495
Bonds ............................................. 12,897,704
65,592
Others .............................................
208,255
6,783,089
Other money held in trust ...................
—
23,120
Total .................................................... 27,426,258
1,438,789
Stocks .............................................
1,131,143
3,185,495
Bonds ............................................. 17,425,753
99,388
Others .............................................
208,257
6,815,009
Millions of yen
2014
Unrealized
gains
(A) – (B)
¥ (27,353) ¥ 33,950
1,523,711
283,394
1,186,150
359,906
69,838
(42,728)
267,722
(33,785)
—
(10)
1,557,661
256,030
1,186,150
359,906
103,787
(70,079)
267,723
(33,797)
2013
Consolidated
balance sheet
amount
Net unrealized
gains (losses)
(B)
¥ 5,852,111 ¥ 61,150
1,121,598
35,776,786
771,237
2,806,706
108,320
24,525,328
242,040
8,444,750
10
22,789
1,182,759
41,651,687
771,237
2,806,706
169,467
30,365,341
242,054
8,479,639
Unrealized
gains
¥ 61,191
1,256,572
867,109
112,202
277,260
10
1,317,774
867,109
173,390
277,274
Unrealized
losses
¥ 153
118,718
55,006
4,245
59,466
—
118,872
55,006
4,398
59,466
Unrealized
losses
¥ 41
134,973
95,872
3,881
35,220
—
135,015
95,872
3,922
35,220
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, 2014 and 2013, included gains of ¥17,031 million and ¥29,831 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, 2014 and 2013, were reduced by ¥17,031 million and ¥29,831 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 2014
3. Consolidated Capital Ratio
Total capital ratio as of March 31, 2014 increased 0.8%
year-on-year to 15.51%, reflecting the recording of net
income and other factors. Tier I capital ratio increased
1.26% to 12.19%, and Common equity Tier I capital ratio
rose 1.25% to 10.63%.
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
2014 (A)
6,550,796
2013 (B)
5,855,852
10.63%
9.38%
963,538
7,514,335
973,168
6,829,021
12.19%
10.93%
2,047,083
9,561,418
2,356,989
9,186,010
15.51%
14.71%
61,623,294
62,426,124
Increase (decrease)
(A) – (B)
694,944
1.25%
(9,630)
685,314
1.26%
(309,906)
375,408
0.80%
(802,830)
4. Dividend Policy
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.
SMFG had a basic policy of steadily increasing returns to
shareholders through the sustainable growth of its enterprise
value, while enhancing its capital to maintain financial sound-
ness in light of the public nature of its business as a bank
holding company, and aimed to realize a payout ratio of over
20% on a consolidated net income basis.
In line with this policy, the annual dividend per share of
common stock at the end of fiscal 2013 was increased by
¥10 year-on-year to ¥120, in view of the fiscal 2013 operating
results.
SMFG aims to increase the dividend per share in a stable
manner by implementing measures for the sustainable growth
of shareholder value. To this end, we aim to achieve higher
profitability and growth through growth investments with the
focus on efficiency of our capital, while enhancing retained
earnings to maintain financial soundness.
27
SMFG 2014 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, 2014.
1. Operating Results
In fiscal 2013, gross banking profit increased by ¥18.0 billion
year-on-year to ¥1,558.1 billion, and expenses (excluding
nonrecurring losses) increased by ¥18.0 billion to ¥745.7 bil-
lion. As a result, banking profit (before provision for general
reserve for possible loan losses) remained steady from the
previous fiscal year at ¥812.4 billion.
Ordinary profit, after the adjustment of banking profit
(before provision for general reserve for possible loan losses)
for non-recurring items such as credit costs and net gains on
stocks, increased by ¥281.6 billion year-on-year to ¥952.5
billion.
Net income after the adjustment of ordinary profit for
extraordinary gains and losses, and income taxes and other
taxes decreased by ¥12.5 billion year-on-year to ¥605.2
billion.
2. Income Analysis
Gross Banking Profit
Gross banking profit increased by ¥18.0 billion year-on-year
to ¥1,558.1 billion despite a ¥113.1 billion decrease in gains
on bonds. This was due mainly to an increase in net interest
income due to profits from equity index-linked investment
trusts, and an increase in net interest income and net fees
and commissions included in gross international profit in line
with asset growth mainly in Asia and the Americas.
Expenses
Expenses (excluding non-recurring losses) increased by ¥18.0
billion year-on-year to ¥745.7 billion, despite a reduction in ordi-
nary expenses. This was mainly attributable to an increase in
personnel and business promotion expenses accompanying the
expansion of overseas business, and an increase in depreciation
arising from previous fiscal years’ investments in systems and
facilities.
Banking Profit
Banking profit (before provision for general reserve for pos-
sible loan losses) remained steady from the previous fiscal
year at ¥812.4 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 ................................................................................................................
2014 (A)
¥1,558,184
[1,112,008]
[446,175]
1,064,906
1,972
357,351
36,779
97,172
[734]
(745,745)
(283,236)
(425,140)
(37,368)
812,438
[734]
—
812,438
Banking Profit by Business Unit
Millions of yen
2013 (B)
¥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
Increase (decrease)
(A) – (B)
¥ 18,089
[13,096]
[4,993]
93,704
149
13,613
40,560
(129,940)
[(113,115)]
(18,009)
(13,145)
(5,937)
1,072
80
[(113,115)]
—
80
Year ended March 31, 2014
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
¥54.3
(23.8)
¥180.2
(9.2)
¥185.3
(6.6)
¥206.7
9.1
¥302.5
28.5
¥(116.6)
(11.2)
¥812.4
0.0
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 2014
Nonrecurring Losses (Credit Costs, etc.)
Non-recurring gains were ¥140.0 billion compared with the
previous fiscal year, an improvement of ¥281.5 billion. This
was due chiefly to an increase in gains on sales of stocks
reflecting the improvement in the Japanese stock market, and
an increase in gains on reversal of reserve for possible loan
losses as a result of individualized efforts to assist borrowers to
improve their business and financial conditions.
Total credit cost — the total of provision for general
reserve for possible loan losses, credit costs, gains on
reversal of reserve for possible loan losses and recoveries
of written-off claims — decreased by ¥143.4 billion
year-on-year to a net reversal of ¥123.9 billion.
Ordinary Profit
As a result, ordinary profit increased by ¥281.6 billion
year-on-year to ¥952.5 billion.
Extraordinary Gains (Losses)
Extraordinary losses increased by ¥0.5 billion year-on-year to
¥6.0 billion.
Net Income
Current income taxes totaled ¥182.8 billion. Deferred income
taxes increased by ¥320.4 billion to an expense of ¥158.3 bil-
lion, due chiefly to the absence of special factors in the previ-
ous fiscal year following a revision of the criteria under which
SMBC recognized deferred tax assets. As a result, net income
for the period decreased ¥12.5 billion year-on-year to ¥605.2
billion.
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 costs (B) ..........................................................................................................
Gains on reversal of reserve for possible loan losses (C) ..........................................
Recoveries of written-off claims (D) ...........................................................................
Net gains (losses) on stocks ......................................................................................
Gains on sales of stocks and other securities .......................................................
Losses on devaluation of stocks and other stocks ...............................................
Others ........................................................................................................................
Ordinary profit ...............................................................................................................
Extraordinary gains (losses)...........................................................................................
Losses on disposal of fixed assets ...........................................................................
Losses on impairment of fixed assets .......................................................................
Income taxes-current ....................................................................................................
Income taxes-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 ................................................................................
2014 (A)
¥812,438
—
812,438
140,078
(8,945)
132,784
82
106,410
112,682
(6,272)
(90,252)
952,516
(6,033)
(3,604)
(2,428)
(182,869)
(158,358)
¥605,255
¥123,920
66,627
(4,520)
66,899
(4,425)
(742)
82
Millions of yen
2013 (B)
¥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
Increase (decrease)
(A) – (B)
¥ 80
—
80
281,583
37,381
106,037
28
142,072
112,213
29,859
(3,933)
281,664
(582)
(1,404)
822
26,835
(320,453)
¥ (12,536)
¥143,443
(5,053)
35,738
112,001
1,642
(910)
28
29
SMFG 2014 3. Assets, Liabilities and Net Assets
Assets
Total assets as of March 31, 2014 increased by ¥10,056.4
billion year-on-year to ¥135,966.4 billion. Of this amount,
loans and bills discounted increased by ¥3,599.9 billion to
¥63,370.6 billion, mainly in Asia and the Americas.
Liabilities
Liabilities as of March 31, 2014 increased by ¥9,533.5 bil-
lion year-on-year to ¥128,889.0 billion. Deposits increased
by ¥4,130.9 billion to ¥84,137.3 billion due to an increase in
deposits both domestic and overseas.
Net Assets
Net assets as of March 31, 2014 amounted to ¥7,077.3
billion. Of this amount, stockholders’ equity was ¥6,179.5
billion mainly due to the recording of net income, and the
payment of cash dividends, comprising ¥1,770.9 billion in
capital stock, ¥2,481.2 billion in capital surplus (including
¥710.2 billion in other capital surplus), ¥2,137.2 billion in
retained earnings, and a deduction of ¥210.0 billion in trea-
sury stock.
Valuation and translation adjustments were ¥897.8 billion,
comprising ¥926.8 billion in net unrealized gains on other
securities, ¥53.1 billion in net deferred losses on hedges,
and ¥24.1 billion in land revaluation excess.
Assets, Liabilities and Net Assets
March 31
Assets ............................................................................................................................ ¥135,966,434
27,317,549
63,370,678
128,889,073
84,137,339
14,020,505
7,077,360
6,179,502
Securities ...................................................................................................................
Loans and bills discounted ........................................................................................
Liabilities ........................................................................................................................
Deposits.....................................................................................................................
Negotiable certificates of deposit ..............................................................................
Net assets .....................................................................................................................
Stockholder’s equity ..................................................................................................
2014 (A)
Millions of yen
2013 (B)
¥125,910,020
41,347,000
59,770,763
119,355,573
80,006,438
11,921,899
6,554,446
5,762,995
Increase (decrease)
(A) – (B)
¥10,056,414
(14,029,451)
3,599,915
9,533,500
4,130,901
2,098,606
522,914
416,507
30
SMFG 2014 4. Unrealized Gains (Losses) on Securities
Net unrealized gains on securities as of March 31, 2014
increased by ¥161.2 billion year-on-year to ¥1,245.4 bil-
lion, as a result of an increase in unrealized gains on stocks
reflecting the improvement of stock market.
Unrealized Gains (Losses) on Securities
2014
Millions of yen
Non-
consolidated
balance sheet
amount
Net unrealized
gains (losses)
(A)
March 31
Held-to-maturity securities ................. ¥ 4,436,939 ¥ 33,115
Stocks of subsidiaries and affiliates ...
(72,421)
3,148,478
Other securities .................................. 20,288,361
1,284,779
Stocks .............................................
1,109,090
3,118,385
Bonds ............................................. 11,831,122
59,993
Others .............................................
115,695
5,338,853
Other money held in trust ...................
—
2,060
Total .................................................... 27,875,841
1,245,474
Stocks .............................................
1,104,367
4,287,847
Bonds ............................................. 16,268,062
93,109
Others .............................................
47,997
7,319,931
Unrealized
gains
(A) – (B)
¥ (26,789) ¥ 33,240
7,158
1,391,833
1,159,836
63,934
168,062
—
1,432,232
1,166,995
97,174
168,062
(56,095)
244,119
339,405
(35,268)
(60,018)
(10)
161,225
340,081
(62,056)
(116,800)
Unrealized
losses
¥ 124
79,579
107,054
50,746
3,940
52,367
—
186,758
62,627
4,065
120,065
2013
Non-
consolidated
balance sheet
amount
Net unrealized
gains (losses)
(B)
¥ 5,735,948 ¥ 59,904
(16,326)
1,040,660
769,685
95,261
175,713
10
1,084,249
764,286
155,165
164,797
2,474,054
33,655,434
2,792,916
23,126,292
7,736,225
2,372
41,867,810
3,900,774
28,862,241
9,104,794
Unrealized
gains
¥ 59,941
7,274
1,165,723
862,237
98,552
204,933
10
1,232,949
869,511
158,494
204,943
Unrealized
losses
¥ 37
23,600
125,062
92,551
3,291
29,219
—
148,699
105,224
3,328
40,146
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, 2014 and 2013, included gains of ¥17,031 million and ¥29,831 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, 2014 and 2013, were reduced by ¥17,031 million and ¥29,831 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 2014
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, 2014
(Billions of yen)
March 31, 2013
Balances
(after provisions
and write-offs)
¥147.2
0.6
9.3
24.2
¥181.3
Change from
Mar. 31, 2013
¥49.4
0.1
0.8
24.1
¥74.4
Overseas
¥139.1
0.6
9.3
24.2
¥173.1
Change from
Mar. 31, 2013
¥41.3
0.1
0.8
24.1
¥66.2
Net unrealized
gains/losses
(after write-offs)
¥1.0
2.0
0.5
0.2
¥3.7
Change from
Mar. 31, 2013
¥0.7
(0.1)
(0.0)
(0.0)
¥0.5
Balances
(after provisions
and write-offs)
¥ 97.8
0.5
8.5
0.1
¥106.9
Overseas
¥ 97.8
0.5
8.5
0.1
¥106.9
Net unrealized
gains/losses
(after write-offs)
¥0.4
2.1
0.5
0.2
¥3.2
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. Leveraged Loans
Europe
Japan
United States
Asia (excluding Japan)
Total
March 31, 2014
(Billions of yen)
March 31, 2013
Loans
¥145.5
276.2
123.9
57.4
¥603.0
Change from
Mar. 31, 2013
Undrawn
commitments
Change from
Mar. 31, 2013
Loans
Undrawn
commitments
¥ 36.1
95.4
50.1
(2.4)
¥179.2
¥ 22.3
25.3
108.0
4.8
¥160.4
¥ 5.7
(11.0)
31.4
(0.8)
¥25.4
¥109.4
180.8
73.8
59.8
¥423.8
¥ 16.6
36.2
76.5
5.6
¥135.0
32
SMFG 2014
Risk Management
Basic Approach
As risks in the financial services increase in diversity and complexity,
Under SMFG’s Groupwide basic policies for risk management,
all Group companies periodically carry out reviews of the basic
risk management—identifying, measuring, and controlling risk—has
management policies for each risk category, or whenever deemed
never been more important in the management of a financial holding
necessary, thus ensuring that the policies followed at any time
company.
are the most appropriate. The management of SMFG constantly
SMFG has established the basic principles of Groupwide risk
monitors the conduct of risk management at Group companies,
management in the “Regulations on Integrated Risk Management.”
providing guidance when necessary.
In the regulations, we identify the location and the type of risk to
be managed in accordance with strategic goals and business struc-
tures. We have set forth the fundamental principles for integrated risk
management and manage each risk appropriately according to its
characteristics. Through this approach, we aim to develop sound risk
culture.
(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
response to changes in the operating environment. The Corporate
Risk Management Department works with the Corporate Planning
Department to comprehensively and systematically manage all
these categories of risk across the entire Group.
(2) Basic Policies for Risk Management
SMFG has established the “Principal Policy for Group Risk
Management” for the comprehensive risk and risks to be managed,
and we set forth the specific operational policies for appropriately
conducting the risk management of the Group companies. Further,
the Principal Policy is being reviewed regularly and as necessary.
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 mem-
bers, and the relevant risk management departments perform risk
management according to the basic policies.
Risk management systems are in place at the individual Group
companies in accordance with SMFG’s Groupwide basic policies
for risk management. For example, at SMBC, specific departments
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 con-
solidating the functions for managing major risks—credit, market,
liquidity and operational—into the Risk Management Unit and
enhancing our across-the-board risk monitoring ability. A board
member is assigned to oversee the Risk Management Unit com-
prising the Corporate Risk Management Department and Credit &
Investment Planning Department. The Corporate Risk Management
■ Fundamental Principles for Integrated Risk Management (Excerpt major principles)
Basic Principles
Description
Risk management on a consoli-
dated basis
Various risks taken at the affiliates to be managed on a consolidated basis according to the business and
importance in conformity with the relevant laws and regulations.
Risk management based on
quantification
The risks subject to control to be quantitatively managed according to the relevant risk characteristics after
specifying the scope of quantification.
Ensuring consistency with the
business strategy
System for check and balance
Risk management to be consistent with the business strategy.
The risk management framework to be developed to ensure effective check and balance function for busi-
ness operations.
Measures for emergencies and
critical situations
Necessary measures to be developed by assuming situations, scenarios etc. as to materialization of risk
which would have a significant impact on the business and financial management of the Bank.
Verification of the actual situation The actual risk management process to be verified by the Internal Audit Unit.
33
SMFG 2014
Department—the unit’s planning department—comprehensively and
the special characteristics of each type of risk and the business
systematically manages all categories of risk in cooperation with
activities of each Group company. We then allocate capital appro-
the Corporate Planning Department. Moreover, the Internal Audit
priately and effectively to each unit to keep total exposure to various
Unit—independent of all business units—conducts periodic audits
risks within the scope of our resources, i.e., capital.
to ensure that the management system is functioning properly.
In the case of credit and market risk, we set maximum risk
Furthermore, under our system top management plays an
capital limits, which indicate the maximum risk that may be taken
active role in the approval of basic policies for risk management.
during the period, taking account the level of stress stipulated in
The decision-making process for addressing credit, market, and
business plans. In addition, for operational risk, we also allocate
liquidity risk at the operating level is strengthened by the Credit
risk capital, and, for the Group as a whole, we set total risk capital
Risk Management Committee and the Market Risk Management
allocations within SMFG’s capital. Risk capital limits are subdivided
Committee, which are subcommittees of the Management
into upper limits for each business and unit including VaR and loss
Committee. The Management Committee is also attended by the
limits. Therefore, by strictly observing these frameworks, SMFG
relevant department heads.
maintains the soundness of the Group as a whole.
Integrated Risk Management
(1) Risk Capital-Based Management
In order to maintain a balance between risk and return as well as
In this framework, risk capital includes credit concentration
risk and interest rate risk in the banking book which are taken into
account under the Pillar 2 of Basel Capital Accord. In addition, we
conduct risk capital-based management activities on a consolidated
ensure the soundness of the Group from an overall perspective, we
basis, including each Group company.
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
Liquidity risk is managed based on a framework consisting of
setting upper limit for funding gaps, etc. Other risk categories are
managed with procedures closely attuned to the nature of the risk.
■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
SMBC
SMBC Nikko
Securities
Sumitomo Mitsui
Finance & Leasing
SMBC
Friend
Securities
SMFG
Card & Credit
Sumitomo
Mitsui Card
Cedyna
SMBC
Consumer
Finance
Japan
Research
Institute
34
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
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
Settle-
ment
Risk
Bank-wide
Risk Management
Corporate Planning
Dept./Corporate Risk
Management Dept.
IT Planning Dept.
System Risk
Other Departments
Other Risks
SMFG 2014
(2) Stress Testing
In the current volatile business environment, stress testing to
that we can prepare action to deal with emerging stress events as
they occur in advance.
analyze and estimate the adverse effects of events such as an eco-
Furthermore, SMBC has in place a system enabling flexible
nomic recession and market volatility on the business and financial
control of operations at a time of sudden changes in our business
conditions of financial institutions is increasingly essential.
environment. Joint platforms have been created for regularly bring-
When establishing the medium-term management plan or
ing together the Risk Management Unit, business units and other
annual business plan, we create some scenarios such as a global
affected units, where discussions are held, based on a shared
economic slowdown or a JGB rate rising sharply, and conduct
appraisal of the macro-environment, on responding to a hypotheti-
stress testing to appraise the likely financial impact on the Group, so
cal stress event assumed to have impact on conduct of operations.
■ 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.
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
Market
Risk
Risk
Capital-Based
Management
Operational Risk
Processing Risk
System Risk
ALM/
Funding Gap
Liquidity Risk
Management
by Risk Type
Other Risks
(Settlement Risk and Others)
■ Process of Stress Testing
Flow
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.
Liquidity risk is defined as the uncertainty around the ability of the firm to meet debt obligations without
incurring unacceptably large losses. Examples of such risk include the possible inability to meet current
and future cash flow/collateral needs, both expected and unexpected. In such cases, the firm may be
required to raise funds at less than favorable rates or be unable to raise sufficient funds for settlement.
—
Summary
(1) Scenario design
Scenario (example):
Developing the scenario (including macroeconomic indicators, such as GDP, stock price, interest rate and foreign exchange rate)
via discussions of the future trends in the global situation with related departments.
Trend scenario
(economic forecasting)
Downside scenario
(could possibly happen)
Stress scenario
(1 in 10 years)
…
(2) Scenario setting
At SMBC, discussing the scenario between the risk management unit and the business units and revising it as necessary.
(3) Estimating of the impact on financial items
Estimating the impact on each financial item under the scenario, summing them, and analyzing the impact on the common equity Tier I
ratios etc.
(4) Report to Management Committee and
Board of Directors
Reporting the scenario which set in (2) and the impact on the common equity Tier I ratios etc. which estimated in (3) to the Management
Committee and Board of Directors.
35
SMFG 2014
(3) Risk Appetite Framework
To ensure an appropriate risk-return balance, and to avoid enor-
Implementation of Basel Capital Accord
Basel III is an international agreement on minimum capital require-
mous unforeseen losses, SMFG has in place the risk appetite
ments for internationally active banks. The standard has been
framework. Specifically, we define risk appetite as the types and lev-
applied in Japan since March 31, 2013.
els of risk we are willing to undertake to drive earnings growth and
The framework of Basel III is a continuation of Basel II, with
incorporate it into business operations to establish the framework
multiple approaches to calculating capital requirements. With regard
which is consistent across the elements indicated in the diagram
to credit risk, SMFG has been using the Advanced Internal Ratings-
below.
Based (AIRB) approach since March 31, 2009, and for operational risk
Furthermore, to quantitatively grasp the risk appetite, we set
the Advanced Measurement Approach (AMA), since March 31, 2008.
risk appetite indicators from each category; financial soundness,
Risk assets subject to the Basel Capital Accord totaled
profitability, and liquidity.
1) Setting risk appetite indicators
¥61,623.3 billion as of March 31, 2014, down ¥802.8 billion from
March 31, 2013. Main factors in the decrease included improve-
The target levels and limits of risk appetite indicators are decided
ment in the Probability of Default rate and Loss Given Default
by the Management Committee and the Board of Directors at the
rate (credit risk), reduced trading book positions (market risk) and
beginning of each fiscal year to be consistent with management tar-
improved measurement methods at a part of Group companies
gets, financial objectives and business plans, based on the portfolio
(operational risk).
planning which reflects our risk-taking policy.
When setting the target levels and limits, we conduct stress
testing and examine whether the risk-taking is managed within our
scope of financial soundness, profitability and liquidity under stress
conditions.
We also set various risk capital limits and upper limits for
credit, market and liquidity risks as to be consistent with business
plans, management targets and financial objectives of risk appetite
indicators.
2) Validation by Stress Testing and Monitoring
During the period, we monitor the risk appetite indicators and
conduct stress testing to validate it. In case of the deviation from
the target levels and breach of the limits occur, we will review the
business plans as necessary. Specifically, we periodically monitor
the values of risk appetite indicators, and validate that the results of
stress testing are within our scope of the target levels and limits of
risk appetite indicators for financial soundness or other categories
which we set at the beginning of the fiscal year.
■ Overview of Risk Appetite Framework at SMFG
Risk appetite
Risk appetite indicators
Business
and
financial
targets
Business
plans
Financial
soundness
Tier I ratio (common stock, etc.)
Risk capital (overall, credit risk ...), etc
Profitability
Risk-return indicators, etc
Liquidity
Short-term funding dependence, etc
Risk-taking
policy and
portfolio
planning
Limits
Monitoring/stress testing
■ Risk-Weighted Assets as of March 31, 2014
Credit risk
Market risk
Operational risk
Total
(Trillions of yen)
March 31,
2013
March 31,
2014
Increase
(decrease)
57.1
2.0
3.3
62.4
57.0
1.7
2.8
61.6
(0.1)
(0.3)
(0.4)
(0.8)
■ Risk Assets at Individual Departments
(Trillions of yen)
Sumitomo Mitsui
Financial Group
Credit risk
Market risk
Operational risk
57.0
1.7
2.8
Wholesale
Credit risk
Retail
Credit risk
International
Credit risk
Other
Credit risk
15.6
15.2
7.5
7.3
14.9
14.2
23.7
20.3
Note: Other includes Treasury Unit, Investment Banking Unit and Group companies.
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
become worthless.
36
SMFG 2014
Overseas credits also include an element of country risk, which
is closely related to credit risk. This is the risk of loss caused by
(3) Credit Policy
SMFG’s Group credit policy comprises clearly stated universal and
changes in foreign exchange, or political or economic situations.
basic operating concepts, policies, and standards for credit opera-
(2) Fundamental Principles for Credit Risk Management
All Group companies follow the fundamental principles established
tions, in accordance with our business mission and rules of conduct.
SMFG is promoting the understanding of and strict adherence
by SMFG to assess and manage credit risk on a Groupwide basis
to its Group credit policy among all its managers and employees. By
and further raise the level of accuracy and comprehensiveness of
fostering a culture of appropriate levels of risk-taking, and by provid-
Groupwide credit risk management. Each Group company must
ing still high-value-added financial services, SMFG aims to enhance
comprehensively manage credit risk according to the nature of its
shareholder value and play a key contributory role in the community.
business, and assess and manage credit risk of individual loans and
credit portfolios quantitatively and using consistent standards.
Credit risk is the most significant risk to which SMFG is
exposed. Without effective credit risk management, the impact of
the corresponding losses on operations can be overwhelming.
The purpose of credit risk management is to keep credit risk
exposure to a permissible level relative to capital, to maintain the
soundness of Groupwide assets, and to ensure returns commen-
surate with risk. This leads to a loan portfolio that achieves high
returns on capital and assets.
2. Credit Risk Management System
At SMBC, the Credit & Investment Planning Department within
the Risk Management Unit is responsible for the comprehensive
management of credit risk. This department drafts and administers
credit policies, the internal rating system, credit authority guidelines,
and credit application guidelines, and manages non-performing
loans (NPLs) and other aspects of credit portfolio management. The
department also cooperates with the Corporate Risk Management
Department in quantifying credit risk (risk capital and risk-weighted
■ SMBC’s Credit Risk Management System
Risk Management Unit
Corporate Risk Management Dept.
•Aggregates risk for comprehensive management
•Plans and proposes risk quantification methods
Credit & Investment Planning Dept.
•Aggregates credit risk for unified management
•Plans and proposes basic credit policies
•Drafts, administers, and examines internal rating system
Credit Portfolio Management Dept.
•Undertakes active portfolio management
Board of Directors
Corporate Auditors
Management Committee
External Audit (Auditing Firm)
Internal Audit Unit
Internal Audit Dept.
•Audits credit risk management
Credit Review Dept.
•Audits self-assessments, grading (obligors and facilities), and
effectiveness of write-offs and reserves
Business Units
Retail Banking Unit
Wholesale Banking Unit
International Banking Unit
Credit Dept.
Credit Dept.
I & II
Corporate Credit Dept.
Credit Administration
Dept.
Credit Management
Dept.
Asia Credit Dept.
Credit Dept.,
Americas Div.
Credit Dept.,
Europe Div.
Individuals and SMEs
Small and
Medium-Sized Enterprises
Large Domestic
Corporations
Management of
problem loans
(prepare and implement
plans to dispose or
restructure, sell off)
Overseas Banks
International Dept.
Credit Management
Overseas Corporations
(Asia & Pacific Region,
Japan)
Structured Finance
(Asia & Pacific Region)
Overseas Corporations
(Americas)
Structured Finance
(Americas)
Overseas Corporations
(Europe)
Structured Finance
(Europe)
Credit
Dept.
Structured Finance
Credit Dept.
Structured Finance
(Investment Banking Unit,
Japan)
Corporate Research Dept.
•Industry trend research
•Credit assessment of major industry players
Global Aircraft
Credit Dept.
Aircraft related
(Overseas)
37
SMFG 2014
assets) and controls the bank’s entire credit risk. Further, the Credit
into account transaction conditions such as guarantee/collateral, and
Portfolio Management Department within the Credit & Investment
tenor. An obligor grade is determined by first assigning a financial
Planning Department has been strengthening its active portfolio
grade using a financial strength grading model and data obtained
management function for stable credit portfolios mainly through
from the obligor’s financial statements. The financial grade is then
credit derivatives and the sales of loans.
adjusted taking into account the actual state of the obligor’s balance
The Credit Departments within each business unit conduct
sheet and qualitative factors to derive the obligor grade. In the event
credit risk management along with branches, for loans handled by
that the borrower is domiciled overseas, internal ratings for credit are
their units and manage their units’ portfolios. The credit approval
made after taking into consideration country rank, which represents
authority is determined based on the credit amount and internal
an assessment of the credit quality of each country, based on its
grades, while credit departments focus on the analysis and manage-
political and economic situation, as well as its current account bal-
ment of customers and transactions with relatively high credit risk.
ance and external debt. Self-assessment is the obligor grading pro-
The Credit Administration Department is responsible for handling
cess for assigning lower grades, and the borrower categories used
NPLs of borrowers classified as potentially bankrupt or lower, and
in self-assessment are consistent with the obligor grade categories.
draws up plans for their workouts, including write-offs. It works
Obligor grades and facility grades are reviewed once a year,
to efficiently reduce the amount of NPLs through Group company
and, whenever necessary, such as when there are changes in the
SMBC Servicer Co., Ltd., which engages in related services, and by
credit situation.
such means as the sell-off of claims.
There are also grading systems for loans to individuals, and
Through industrial and sector-specific surveys, and studies of
project finance and other structured finance tailored according to
individual companies, the Corporate Research Department works to
the risk characteristics of these types of assets.
form an accurate idea of the circumstances of borrower companies
The Credit & Investment Planning Department centrally man-
and quickly identify those with potentially troubled credit positions
ages the internal rating systems, and properly designs, operates,
as well as promising growth companies.
supervises, and validates the grading models. It validates the grad-
The Internal Audit Unit, operating independently of the business
ing models (including statistical validation) of main assets following
units, audits asset quality, accuracy of gradings and self-
assessment, and state of credit risk management, and
reports the results directly to the Board of Directors and
the Management Committee.
SMBC has established the Credit Risk Committee,
as a consultative body, to round out its oversight
■SMBC’s Obligor Grading System
Obligor Grade
Domestic
(C&I), etc.
Overseas
(C&I), etc.
Definition
Borrower
Category
Financial Reconstruction
Act Based Disclosure
Category
(Domestic)
system for undertaking flexible and efficient control of
J1
G1
Very high certainty of debt repayment
credit risk, and ensuring the overall soundness of the
bank’s loan operations.
J2
G2
High certainty of debt repayment
3. Credit Risk Management Methods
(1) Credit Risk Assessment and Quantification
At SMBC, to effectively manage the risk involved in indi-
vidual 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 borrower and loan
using an internal rating system, and quantify that risk for
control purposes.
(a) Internal Rating System
There is an internal rating system for each asset control
category set according to portfolio characteristics. For
J3
G3
Satisfactory certainty of debt repayment
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
Normal
Borrowers
Normal Assets
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
example, credits to commercial and industrial (C&I)
J8
G8
Currently not bankrupt, but experiencing business difficulties,
making insufficient progress in restructuring, and highly
likely to go bankrupt
companies, individuals for business purposes (domestic
only), sovereigns, public-sector entities, and financial
institutions are assigned an “obligor grade,” which indi-
cates the borrower’s creditworthiness, and/or “facility
grade,” which indicates the collectibility of assets taking
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
38
Potentially
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Bankrupt
Borrowers
Doubtful Assets
Bankrupt and
Quasi-Bankrupt
Assets
SMFG 2014
the procedures manual once a year, to ensure their effectiveness
a comprehensive credit assessment. The loan application is analyzed
and suitability.
(b) Quantification of Credit Risk
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
Credit risk quantification refers to the process of estimating the degree
decision based on an objective examination of all relevant factors.
of credit risk of a portfolio or individual loan taking into account not
Increasing the understandability to customers of loan conditions
just the obligor’s Probability of Default (PD), but also the concentration
and approval standards for specific borrowing purposes and loan
of risk in a specific customer or industry and the loss impact of fluc-
categories is a part of SMBC’s ongoing review of lending practices,
tuations in the value of collateral, such as real estate and securities.
which includes the revision of loan contract forms with the chief aim
Specifically, first, the PD by grade, Loss Given Default (LGD),
of clarifying lending conditions utilizing financial covenants.
credit quality correlation among obligors, and other parameter values
SMBC is also making steady progress in streamlining its credit
are estimated using historical data of obligors and facilities stored
assessment process. To respond proactively and promptly to cus-
in a database to calculate the credit risk. Then, based on these
tomers’ funding needs—particularly those of SMEs—we employ a
parameters, we run a simulation of simultaneous default using the
standardized credit risk assessment process for SMEs that uses a
Monte Carlo method to calculate our maximum loss exposure to
credit-scoring model. With this process, we are building a regime for
the estimated amount of the maximum losses that may be incurred.
efficiently marketing our Business Select Loan and other SME loans.
Based on these quantitative results, we allocate risk capital.
In the field of housing loans for individuals, we employ a credit
Risk quantification is also executed for purposes such as to
assessment model based on credit data amassed and analyzed
determine the portfolio’s risk concentration, or to simulate economic
by SMBC over many years. This model enables our loan officers
movements (stress tests), and the results are used for making
to efficiently make rational decisions on housing loan applications,
optimal decisions across the whole range of business operations,
and to reply to the customers without delay. It also facilitates the
including formulating business plans and providing a standard
effective management of credit risk, as well as the flexible setting of
against which individual credit applications are assessed.
interest rates.
(2) Framework for Managing Individual Loans
(a) Credit Assessment
We also provide loans to individuals who rent out properties
such as apartments. The loan applications are subjected to a
At SMBC, credit assessment of corporate loans involves a variety
precise credit risk assessment process utilizing a risk assessment
of financial analyses, including cash flow, to predict an enterprise’s
model that factors in the projected revenue from the rental busi-
capability of loan repayment and its growth prospects. These
ness. The process is also used to provide advice to such customers
quantitative measures, when combined with qualitative analyses of
on how to revise their business plans.
industrial trends, the enterprise’s R&D capabilities, the competitive-
(b) Credit Monitoring System
ness of its products or services, and its management caliber, result in
At SMBC, in addition to analyzing loans at the application stage,
■SMBC’s Credit Monitoring System
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
39
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 2014
the Credit Monitoring System is utilized to reassess obligor grades
Japanese Institute of Certified Public Accountants. Self-assessment
and review self-assessment and credit policies so that problems
is the latter stage of the obligor grading process for determining the
can be detected at an early stage, and quick and effective action
borrower’s ability to fulfill debt obligations, and the obligor grade
can be taken. The system includes periodic monitoring carried out
criteria are consistent with the categories used in self-assessment.
each time an obligor enterprise discloses financial results, as well
At the same time, self-assessment is a preparatory task for
as continuous monitoring performed each time credit conditions
ensuring SMBC’s asset quality and calculating the appropriate level
change, as indicated in the diagram on page 39.
of write-offs and provisions. Each asset is assessed individually for
(3) Framework for Credit Portfolio Management
In addition to managing individual loans, SMBC applies the follow-
ing basic policies to the management of the entire credit portfolio to
maintain and improve its soundness and profitability over the mid to
long term.
(a) Risk-Taking within the Scope of Capital
To keep credit risk exposure to a permissible level relative to capital,
SMBC sets a credit risk capital limit for internal control purposes.
Under this limit, sub-limits are set for each business unit. Regular
monitoring is conducted to make sure that these limits are being fol-
lowed, thus ensuring appropriate overall management of credit risk.
(b) Controlling Concentration Risk
its security and collectibility. Depending on the borrower’s current
situation, the borrower is assigned to one of five categories: Normal
Borrowers, Borrowers Requiring Caution, Potentially Bankrupt
Borrowers, Effectively Bankrupt Borrowers, and Bankrupt Borrowers.
Based on the borrower’s category, claims on the borrower are
classified into Classification I, II, III, and IV assets according to their
default and impairment risk levels, taking into account such factors
as collateral and guarantees. As part of our efforts to bolster risk
management throughout the Group, our consolidated subsidiaries
carry out self-assessment in substantially the same manner.
Borrower Categories, Defined
As the equity capital of the bank may be materially impaired in the
event that the credit concentration risk becomes apparent, SMBC
Normal Borrowers
Borrowers with good earnings performances and no
significant financial problems
implements measures to manage credit towards an industrial sector
Borrowers Requiring Caution
Borrowers identified for close monitoring
with excessive risk concentration, introduces large exposure limit lines
Potentially Bankrupt Borrowers
and conducts intensive loan review for obligors with large exposure.
To manage country risk, SMBC also has credit limit guidelines
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
based on each country’s creditworthiness.
Bankrupt Borrowers
Borrowers that have been legally or formally declared bankrupt
(c) Researching Borrowers More Rigorously and Balancing Risk
and Returns
Asset Classifications, Defined
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
Classification I
Classification II
returns that are commensurate with the credit risk involved, and
Classification III
makes every effort to reduce credit and capital costs as well as
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
general and administrative expenses.
Classification IV
Assets assessed as uncollectible or worthless
(d) Prevention and Reduction of Non-Performing Loans
(b) Asset Write-Offs and Provisions
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.
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
(4) Self-Assessment, Asset Write-Offs and Provisions,
possible loan losses.
and Disclosure of Problem Assets
(a) Self-Assessment
SMBC’s write-off and provision criteria for each self-assessment
borrower category are shown in the next page. As part of our over-
SMBC conducts rigorous self-assessment of asset quality using
all measures to strengthen risk management throughout the Group,
criteria based on the Financial Inspection Manual of the Financial
all consolidated subsidiaries use substantially the same standards
Services Agency and the Practical Guideline published by the
as SMBC for write-offs and provisions.
40
SMFG 2014
Self-Assessment
Borrower Categories
Standards for Write-Offs and
Provisions
write-offs and provisions, and disclosure of problem assets at
March 31, 2014, please refer to page 171.
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 accor-
dance 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 self-assessments, asset
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 defined as the uncertainty around the ability of
the firm to meet debt obligations without incurring unacceptably
large losses. Examples of such risk include the possible inability to
meet current and future cash flow/collateral needs, both expected
and unexpected. In such cases, the firm may be required to raise
funds at less than favorable rates or be unable to raise sufficient
funds for settlement.
(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
41
SMFG 2014
directly handle market transactions, manages market and liquidity
monthly basis to examine reports on the state of observance of
risks in an integrated manner. The Corporate Risk Management
SMBC’s limits on market and liquidity risks, and to review and dis-
Department not only monitors the current risk situations, but also
cuss the SMBC’s ALM operation.
reports regularly to the Management Committee and the Board
To prevent unforeseen processing errors as well as fraudulent
of Directors. Furthermore, SMBC’s ALM Committee meets on a
transactions, it is important to establish a system of checks on the
■ SMBC’s Market Risk and Liquidity Risk Management
System
Board of Directors
Market
Risk
Manage-
ment
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
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
Managing Depts.
cancellation prior to maturity of time deposits and consumer loans
Other market-
related
operations
Market
operations
(Treasury Unit)
Market
operations
(International
Banking Unit)
Market
operations
(Group companies)
differ substantially. At SMBC, the maturity of demand deposits
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
Front Office
Front/Middle/Back Offices
based on historical data.
■ VaR for Trading Activities
SMFG (consolidated)
Interest rates
Foreign exchange
Equities, commodities, etc.
SMBC (consolidated)
SMBC (non-consolidated)
March 31, 2014
9.5
5.2
0.6
4.1
September 30, 2013
9.1
4.6
0.8
4.3
8.5
1.1
8.4
1.2
fiscal 2013
Maximum
28.8
8.3
4.6
20.4
27.9
9.2
Minimum
8.2
4.2
0.5
3.2
7.6
1.1
Average
14.6
5.7
2.0
8.1
13.7
4.0
(Billions of yen)
March 31, 2013
15.0
6.3
1.6
8.1
14.3
2.5
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)].
42
SMFG 2014
(a) Market Risks
a. Trading activities
(b) Market risk volume calculation model
a. Presuppositions and limits of model
Trading activities are market operations which gain profits by taking
In SMBC’s internal VaR model, various market fluctuation scenarios
advantage of fluctuations of market prices in the short-term or price
are drawn up on the basis of past data, and the historical simulation
differences among markets. At SMFG, we assess and manage the
method is used to run profit-and-loss movement simulations that
market risk of trading activities on a daily basis, by utilizing VaR and
enable us to forecast probable maximum losses. The appropriate-
other tools. The table at the bottom of the previous page shows
ness of the model is later verified through back-testing.
the VaR results of the Group’s trading activities during fiscal 2013.
However, as back-testing cannot take into account major
Because of the nature of trading, the VaR fluctuated sharply during
market fluctuations that have not actually occurred historically, we
fiscal 2013, in line with changes in our investment positions.
supplement this method with the use of stress testing.
b. Banking activities
This internal model employed by SMBC undergoes regular
Banking activities are market operations which gain profits by con-
auditing by an independent auditing firm to ensure that it operates
trolling interest rates and term period for assets (loans, bonds, etc.)
appropriately.
and liabilities (deposits, etc.). At SMFG, in the same way as in the
b. Validity verification process
case of trading activities, we assess and manage the market risk
i Outline of validity verification
of banking activities on a daily basis, utilizing VaR and other tools.
SMBC uses back-testing as a method for verification of the valid-
The following table shows the VaR results of the Group’s banking
ity of the internal model. VaR figures calculated by the internal
activities during fiscal 2013. The VaR of the Group increased sharply
model are compared with actual portfolio profit-and-loss figures
on March 31, 2014 compared with on March 31, 2013 primarily
on a given day, to compute an appropriate VaR level and confirm
reflecting an increased position in equities.
the adequacy of risk capital management.
ii Back-testing results
The results of back-testing on SMBC’s trading book conducted in
fiscal 2013 are shown below. The data point under the diagonal
line indicates a loss exceeding VaR for that day. Only two data
points under the diagonal line have been observed, which dem-
onstrates that the SMBC VaR model with a one-side confidence
interval of 99.0% is sufficiently reliable.
■ VaR for Banking Activities
SMFG (consolidated)
Interest rates
Equities, etc.
SMBC (consolidated)
SMBC (non-consolidated)
March 31, 2014
41.5
18.6
32.8
September 30, 2013
37.7
18.9
28.6
40.3
35.9
36.6
33.0
fiscal 2013
Maximum
49.2
29.0
40.0
48.0
43.8
Minimum
29.9
13.9
21.1
29.3
26.3
Average
40.2
20.0
30.6
39.1
35.0
(Billions of yen)
March 31, 2013
31.1
16.2
22.0
30.4
27.4
Notes: 1. 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)].
2. The above category of “Equities” does not include stocks held for long-term strategic purposes.
■Back-Testing Results (Trading Book)
SMFG (consolidated)
SMBC (consolidated)
SMBC (nonconsolidated)
10.0
8.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
-8.0
Actual Profit or Loss (¥ billion)
0
4.0
8.0
12.0
16.0
VaR (¥ billion)
10.0
8.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
-8.0
Actual Profit or Loss (¥ billion)
0
4.0
8.0
16.0
12.0
VaR (¥ billion)
10.0
8.0
6.0
4.0
2.0
0
-2.0
-4.0
-6.0
-8.0
Actual Profit or Loss (¥ billion)
0
4.0
8.0
12.0
16.0
VaR (¥ billion)
43
SMFG 2014
iii Reasons for losses exceeding the VaR
In all cases, these were the result of significant fluctuations on the
foreign exchange and stock markets.
c. Indicators substitute for the back-testing method
(2) Liquidity Risk Management
At SMBC, liquidity risk is regarded as one of the major risks.
SMBC’s liquidity risk management is based on a framework consist-
ing of “setting upper limits for funding gaps,” “maintaining highly liq-
SMFG employs, as a method substitute for the back-testing
uid supplementary funding sources,” and “establishing contingency
method, the VaR wherein presumption for the model such as obser-
plans.”
vation period changes.
d. Changes in model from previous fiscal year
A funding gap is defined as the maturity mismatch between
source of funds and use of funds. SMBC actively manages this
The model in use remains unchanged from that employed in the
funding gap by setting limits on the size of the gap over a given
previous fiscal year.
(c) Stress Testing
time horizon and limiting reliance on short-term funding. These limits
are set in place on both a bank-wide basis and individual branch
The market occasionally undergoes extreme fluctuations that
basis, and take into account cash management planning, systemic
exceed projections. To manage market risk, therefore, it is important
factors, and funding status, among other factors. Additionally, fund-
to run simulations of unforeseen situations that may occur in finan-
ing gap limits are set for individual currencies if necessary. SMBC
cial markets (stress testing). SMBC conducts stress tests regularly,
actively monitors the funding gap on a daily basis.
assuming various scenarios, and has measures in place for irregular
Further, stress tests are regularly carried out by simulating the
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 around 1% at SMBC
impact triggered, for example, by the outflow of deposits or having
difficulties in funding from money markets, in order to thoroughly
comprehend the amount required to fund when the liquidity risk
is realized. Additionally, funding liquidity is maintained by holding
assets, such as U.S. government bonds, which can be immediately
converted to cash, or establishing borrowing facilities to be used
as supplementary funding sources in an emergency, in order to
on a consolidated basis at March 31, 2014, substantially below the
smoothly raise the required fund even during market disruption.
20% criterion.
(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
Furthermore, contingency plans are developed to respond to
the liquidity risk when being realized, by creating detailed action
plans such as lowering the upper limit for the funding gap, depend-
ing on the existing situation (i.e. normal, concerned, or critical) and
observance of those limits in order to control stock price fluctuation
the respective circumstances.
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.
■ Decline in Economic Value Based on Outlier Framework
SMBC (consolidated)
SMBC (nonconsolidated)
March 31, 2013 March 31, 2014 March 31, 2013 March 31, 2014
(Billions of yen)
Total
Impact of Yen
interest rates
Impact of U.S. dollar
interest rates
Impact of Euro
interest rates
96.2
60.5
6.8
16.5
83.0
31.1
25.7
18.6
88.6
56.3
4.6
16.5
66.7
23.8
21.5
18.2
Percentage of total capital
1.0%
0.9%
1.0%
0.8%
Note: “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).
44
■ Composition, by Industry, of Listed Equity Portfolio
(%)
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(March 31, 2014)
SMBC Portfolio
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SMFG 2014
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
conduct of operational risk management across the entire Group.
Under these regulations, SMFG and SMBC have been working to
enhance the operational risk management framework across the
whole Group by establishing an effective system for identification,
assessment, controlling, and monitoring of material operational risks
and a system for executing contingency and business continuity
plans. Based on the framework of Basel Capital Accord, SMFG has
been continuously pursuing sophisticated quantification of opera-
tional risks and advanced Groupwide management.
■SMBC’s Operational Risk Management System
2. Operational Risk Management System
SMFG has designed and implemented an operational risk manage-
ment framework for Groupwide basic policies for risk management.
At SMBC, the Management Committee makes decisions on
important matters such as basic policies for operational risk man-
agement, and these decisions are authorized by the SMBC’s Board
of Directors. In addition, SMBC has established the system to com-
prehensively manage operational risks by setting up the Corporate
Risk Management Department to oversee overall management of
operational risks together with other departments responsible for
processing risks and system risks.
As the brief overview, this system operates by collecting and
analyzing internal loss data occurred at each department or branch
as well as comprehensively specifying scenarios involving opera-
tional risks based on the operational procedures of each branch on
regular-basis and estimating the loss amount and frequency of the
occurrence of such losses based on each scenario. Risk severities
are quantified for each scenario and for those scenarios having high
severities the risk mitigation plan will be developed by the relevant
department and the status on the progress of such risk mitiga-
tion plan will be followed up by the Corporate Risk Management
Department. Furthermore, operational risks are quantified, and
quantitatively managed by utilizing the collected internal loss data
and scenarios.
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
Retail Banking
Wholesale Banking
International Banking
Treasury
Investment Banking
45
Corporate Auditors
External Audit
(Auditing Firm)
Internal Audit Dept.
Auditing of management
and measurement system
Board of Directors
Management Committee
Decision and authorization of important matters related
to operational risk management
Audit
Board Member in Charge of Risk Management Unit
Direction
Direction
Reporting
Reporting
Operational Risk Committee
Reporting on operational
risk information,
discussion on measures
for risk mitigation
Corporate Risk Management Dept.
Operational Risk Management Dept.
Measurement of
operational risk
Integrated Operational Risk
Supervisory Dept.
Reporting
Reporting
Feedback of
measurement
results related to
operational risk
and direction for
risk mitigation
Internal loss data
Head Office departments
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
Generation of scenarios and development of risk
mitigation actions through risk control assessments
Reflection of internal loss data,
external loss data and BEICFs in scenarios
Consumer
Banking
Middle Market
Banking
Corporate
Banking
Treasury
Investment
Banking
International
Banking
SMFG 2014
These occurrences of internal loss data, severity of scenarios
and status on risk mitigation are regularly reported to the director in
(2) External Loss Data
External loss data are defined as “the information for events which
charge of the Corporate Risk Management Department. In addition,
other banks, etc. incur losses due to operational risks.”
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.
3. Operational Risk Management Methodology
As previously defined, operational risks cover a wide-range of
cases, including the risks of losses due to errors in operation,
system failures, and natural disasters. Also, operational risk events
can occur virtually anywhere and everywhere. Thus, it is essential
to check whether material operational risks have been overlooked,
monitor the overall status of risks, and manage/control them. To this
end, it is necessary to be able to quantify risks using a measure-
ment methodology that can be applied to all types of operational
risks, and to comprehensively and comparatively capture the status
of and changes in potential operational risks of business processes.
Also, from the viewpoint of internal control, the measurement meth-
odology used to create a risk mitigation plan must be such that the
implementation of the plan quantitatively reduces operational risks.
At the end of March 2008, SMFG and SMBC adopted the
Advanced Measurement Approach (AMA) set forth by Basel Capital
Accord for calculation of operational risk equivalent amount. The
approach has been utilized for the management of operational risks
since then.
The basic framework for quantifying operational risks consists
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
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
by 8%) is calculated. In addition, external loss data and BEICFs
along with internal loss data are used for verifying the assessment
of scenarios to increase objectivity, accuracy and completeness.
SMFG, including the Group companies to which the AMA is
applied, collect the four elements. This is outlined as follows.
(3) Business Environment and Internal Control Factors
(BEICFs)
BEICFs are defined as “factors affecting operational risks which are
associated with conditions of business environment and internal
control of SMFG.”
(4) Scenario Analysis
Scenario analysis is defined as a “methodology which identifies
assumed cases involving any material operational risks and describe
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.
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
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
and loss severity based on the internal loss data and scenario
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. Regarding
the Consumer finance of a certain subsidiary, expected losses are
excluded in calculating the operational risk equivalent amount of the
repayment of excess interest. The measurement units are SMFG
consolidated basis, SMBC consolidated basis and SMBC non-
consolidated basis; and it is measured according to each of seven
■ Basic Framework of Operational Risk Measurement
Internal Loss Data
External Loss Data
Verifi-
cation
Scenario Data
Data
input
Calculation of
Operational Risk
Equivalent Amount
Using Quantification
Model
(1) Internal Loss Data
Internal loss data are defined as “the information for events which
BEICFs
SMFG incur losses due to operational risks.”
Risk Mitigation Initiatives
46
SMFG 2014
event types set forth by Basel Capital Accord. The operational risk
equivalent amount is calculated based on AMA by simply con-
4. Processing Risk Management
Processing risk is the possibility of losses arising from negligent
solidating the amounts of all event types. For the measurement of
processing by employees, accidents, or unauthorized activities.
SMFG consolidated basis, however, the operational risk equivalent
SMFG recognizes that all operations entail processing risk.
amount is calculated by simply consolidating the amounts of all
We are, therefore, working to raise the level of sophistication of
eight event types consisting of the seven event types and losses
our management of processing risk across the whole Group by
relating to the repayment of excess interest.
ensuring that each branch conducts its own regular investigations
The measurement accuracy is ensured by implementing the
of processing risk; minimizing losses in the event of processing
regularly conducted verifications of the said quantification model at
errors or negligence by drafting exhaustive contingency plans; and
pre- and post-occurrences.
carrying out thorough quantification of the risk under management.
Meanwhile, as for the operational risk equivalent amount of
In the administrative regulations of SMBC, in line with
other Group companies not applicable for AMA and in preparation
SMFG’s Groupwide basic policies for risk management, the basic
to become applicable for AMA, it is calculated according to the
administrative regulations are defined as “comprehending the
Basic Indicator Approach (BIA), and the operational risk equivalent
risks and costs of administration and transaction processing, and
amount for SMFG consolidated basis and SMBC consolidated
managing them accordingly,” and “seeking to raise the quality of
basis are calculated by consolidating such amount calculated
administration to deliver high-quality service to customers.” Adding
based on BIA with the operational risk equivalent amount calculated
new policies or making major revisions to existing ones for process-
based on AMA.
(6) Risk Mitigation Initiatives
To mitigate risks using the quantitative results of the AMA, SMFG
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
and SMBC implement risk mitigation measures for high severity
rules for processing risk management. The rules allocate processing
scenarios. Furthermore, the risk assets calculated by quantification
risk management tasks among six types of departments: operations
are allocated to each business unit of SMBC and other Group com-
planning departments, compliance departments, operations depart-
panies for increasing awareness of operational risks internally in the
ments, transaction execution departments (primarily front-office
Group companies, improving the effectiveness of their operational
departments, branches, and branch service offices), internal audit
risk management and mitigating operational risks of the entire Group.
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.
■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
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l
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y
o
f
o
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a
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l
i
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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
47
x conversion factor
99.0%
SMFG 2014
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 Corporate Risk Management Department is in
overall charge of settlement risk, while settlement risk included
within the various other risk categories is managed by the respec-
tive 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.
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.
48
SMFG 2014
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.).
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.
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.
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.
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.
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.
PD
Abbreviation for Probability of Default
Probability of becoming default by obligor during one year.
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 appetite
Types and levels of risk that the bank is willing to undertake to drive
earnings growth.
Risk appetite framework
A framework in which the bank’s risk appetite is clarified and appropri-
ately applied to its business operation.
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%.
Sound risk culture
Business culture in which bank seeks to set the risk-return balance at an
appropriate level after determining the degree of risk that is acceptable.
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.
49
SMFG 2014 Corporate Social Responsibility (CSR)
Contributing to
the Sustainable Development of Society
Today, mankind is faced with diverse issues such as global warm-
ing, rapid population growth, and a declining birthrate and aging of
the population in 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.
Key Items of CSR Activities
The key items of our CSR activities are as follows:
First, we shall develop a solid management system by improving
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.)
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.
Completely and fully achieving CSR is truly the “management itself,”
and we also believe that seriously committing to the implementation
of CSR is thought to be the shortest path for achieving our manage-
ment policies and goals.
50
SMFG 2014
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).
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)
Initiatives which measures, manages and reduces effects of climate changes
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)
Principles of action for financial institutions in Japan for the purpose of
expanding and improving the quality of environmental finance
Guidelines Used for Reference
The Group refers to the following guidelines in its promotion devel-
opment, and information disclosure for CSR.
• ISO26000
This is the “guidance document” with respect to social responsibilities,
consisting of basic principles and seven core subjects (governance, human
rights, labor practices, the environment, fair operating practices, consumer
issues, and community involvement and development).
• GRI Guidelines
“Sustainability Reporting Guidelines (G3.1)” of GRI (Global Reporting
Initiative) is referred to for editing of CSR website and preparation of CSR
reports.
* GRI (Global Reporting Initiative): International organization established in 1997
for the purpose of creating and promoting global guidelines for the “Sustainability
Report.”
• United Nations Global Compact, COP (Communication on Progress),
Advanced Level Criteria
SRI Indexes
The Group is included in internationally-known, major SRI Indexes.
SRI (Socially Responsible Investment) Index is a standard for invest-
ment decisions that are based not only on financial perspectives,
but also on important views including environmental considerations
and social contributions. We believe that this is an endorsement
by the market of the Group’s future corporate social responsibility
activities.
Review of Priority Issues (Materiality) which
SMFG Should Address
In fiscal 2013, the Group has reviewed the previously-raised priority
issues according to changes in social trends, and newly identi-
fied three subject matters of “Environment,” “Next Generations”
and “Community” as the medium- to long-term priority issues
(Materiality).
As a financial group,
be a bridge to the future
Environment
Toward the
sustainable sharing
of the earth
Next Generation
Toward a vibrant
society that balances
maturity and growth
■ Reduce environmental
impact and address
environmental risk
■ Promote environmental
businesses and address
new environmental
issues
■ Social contribution
activities dealing with
environmental issues,
etc.
■ Support for next
generation asset
inheritance and
business succession
■ Contribute to improving
financial literacy and
developing financial
markets in emerging
countries
■ Develop young adults
and global human
resources, etc.
Community
Toward a healthy and
distinctive community
in which everyone
can participate
■ Great East Japan
Earthquake
reconstruction support
■ Contribute to achieving
and developing safe and
secure communities
■ Community-based
activities led by
employees and officers,
etc.
Key Issues to be Addressed on a Solid Management Base
Corporate governance
Interaction with stakeholders
Pleasant workplace and work environment
Rigorous information management
24 evaluation criteria provided for reporting performance status of 10
Fair business practices and competition
Break with anti-social forces
principles of the signed United Nations Global Compact.
Risk management
Customer satisfaction
As for identifying these priority issues, we broadly selected issues
according to the above-mentioned guidelines and prioritized them
based on the degree of importance from perspectives of each
SMFG Group company and stakeholders. Concurrently, the final pri-
ority issues were determined taking into account opinions of experts
through discussions. We will continue to promote implementing
measures for resolving priority issues through discussions with inter-
nal and external stakeholders and Group companies.
51
SMFG 2014 Initiatives for Enhancing Customer Satisfaction (CS) and Quality
The bank has set up the Quality Management Department
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 incorporates such opinions and sug-
gestions 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
52
SMFG 2014
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 Auditing
Committee and Compensation Committee, the outside direc-
tors are appointed as the chairmen for these committees 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,
discuss and report on the management of SMFG and each
of the Group companies. Furthermore, eleven directors (out
of which three directors are outside directors) out of thirteen
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 direc-
tors also serve as the directors for each of these subsidiaries
to oversee their business. Furthermore, in order to maintain the
sound management, SMFG sets forth a system, which firmly
maintains the appropriateness 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 twenty directors for the bank. The exec-
utive officers, who manage business operations, are appointed
by the Board. There are a total of seventy-five executive officers,
including the president, as of June 30, 2014 (out of seventy-five
executive officers, thirteen 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.
53
SMFG 2014
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 functions of the
Group companies, for appropriateness and effectiveness by
monitoring the progress and performance of each company’s
internal auditing activities and conducting audits on the com-
mon subject among groups as deemed necessary. Based on
these activities, the Audit Department provides recommenda-
tions 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, Inc. (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
54
SMFG 2014
Compliance
Compliance Systems at SMFG
Basic Compliance Policies
SMFG strives to further strengthen its compliance systems to
be able to fulfill its public mission and corporate social responsi-
bilities 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 50) as the common CSR principles for the
Group and considers the strengthening of such Business Ethics
as one of the critical issues for 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 self-
sustaining compliance functions of individual Group companies
through regular meetings attended by all Group companies and
meetings with individual companies.
In fiscal 2014, the entire Group focused on enhancing
efforts in severing any connections or relations with anti-social
forces.
Basic Policy for Anti-social Forces
SMFG’s publicly announced basic policy for anti-social forces
are as follows:
1. Completely sever any connections or relations with anti-social
forces.
2. Repudiate any unjustifiable claims, and do not engage in any
“backroom” deals whatsoever. Further, promptly take legal
actions as necessary.
3. Appropriately respond to any anti-social forces as an organi-
zation by cooperating with outside professional agencies.
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 a 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 inappropriate
accounting and auditing activities. This hotline quickly identifies
and takes appropriate actions against any purported 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 Counselors 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.
55
SMFG 2014
Compliance Systems at SMBC
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 compliant with
laws and regulations is one of the most critical issues for man-
agement to deal with such as 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 2014, SMBC is
currently in the process of reviewing its sales/marketing system;
enhancing its compliance system for financial products; improv-
ing its information management system; improving its response
for global rules and regulations; enhancing efforts for severing
56
any relations with anti-social forces; and strengthening measures
for preventing anti-money laundering and financial crimes.
Appointment of Compliance Officers
In addition to appointing compliance officers to each branch
and department of the bank, the “Area Compliance Officers,”
operating independently from areas of business promotion, are
appointed for the Wholesale Banking Unit and Retail 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
Fax:
03-3669-9833
Business hours:
Mondays through Fridays
(except public and bank holidays)
9:00 am to 5:00 pm
SMFG 2014
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 3) “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 organized 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,”
which were adopted in October 2011, are signed 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 188 financial institutions (as of May 31, 2014).
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.
57
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 2014
Managing Environmental Risks
• Environmental and social risks in loan (credit) activities
SMBC believes it is important to take into account the environ-
mental risks for conducting credit assessment. Factoring envi-
ronmental 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 col-
lateral, SMBC requires contamination risk assessment for such
real estate collateral meeting certain criteria. If contamination
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 and mass-destructive weapons, 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 fully consider 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 environ-
mental and social risks in project financing and has established
the Environment Analysis Department (EAD) to assess the envi-
ronmental and social risks of large-scale development projects
in accordance with the principles. In June 2013, as the Equator
Principles were revised to expand its scope and strengthen
the assessment standard, SMBC also revised its internal pro-
cedures in accordance with
revised Equator Principles to
improve its system for assess-
ing environmental and social
risks.
• 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
purchases of green energies, while SMFL has made its Osaka
Head Office carbon neutral.
• Proactively using clean energies
At the renovated and reopened environment-friendly SMBC
model branches in Shimo-Takaido (Tokyo) and Konan (Hyogo),
we are working to reduce the electricity used for lighting of
the branch by combining the solar concentrating equipment
and LED lighting, and to reduce the electricity used for air-
conditioning and other equipment by using solar panels and
wall greening. We are proactively proceeding to install LED
lighting and energy-saving air-conditioning facilities at other
branches taking into account the fact that approximately 40%
reduction of CO2 emissions was achieved after renovation.
SMBC Konan Branch
In July 2012, SMFG, SMBC and JRI, as part of their own
energy-saving initiatives, implemented the solar power genera-
tion equipment in the SMFG’s main computer center for provid-
ing energy during peak business hours.
SMBC Friend Securities converts its branches, at the
time of relocation or renovation, to more environment-friendly
interiors with such as LED lightnings and tiled carpets made of
carbon credits materials; and it also converts to ecologically-
friendly automobiles for business use reducing environmental
burden.
SMBC Consumer Finance also converts its branches, at the
time of relocation or renovation, to more environment-friendly
interiors with such as LED lightnings.
Renovated branches of SMBC Consumer Finance
58
SMFG 2014
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. Further, Growth Industry
Cluster Department works on not limited to the maintenance
or improvement of the global environment but also including
the economic development of each country through providing
support for environment infrastructure improvement projects
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
Eco-Products International Fair (EPIF)
SMBC*1 /
JRI*2
SMBC Environmental Assessment Loan/
Private Placement Bond
SMBC Environmental Assessment Loan/
Private Placement Bond Eco Value-up
SMBC Sustainable Building Assessment
Loan/Private Placement Bond
SMBC Sustainability Assessment Loan/
Private Placement Bond
SMBC Environmental Assessment
Loans/Private Placement Bonds
(Malaysia and Thailand)
SMBC-ECO Loan
SMBC
Ministry of the Environment and
Ministry of Economy, Trade and Industry
subsidized-interest financing program
Emissions trading related business
(advisory services)
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 magazine contains interviews with top management of environmentally advanced companies, analyses of business and
regulatory trends, and other beneficial information for corporate environmental activities. Presently, more than 100 issues of the magazine have
been published. It can be viewed online at SMFG’s website (in Japanese).
SMFG organized a three-day event at Eco-Products, one of Japan’s largest environmental exhibitions. More than 20 of our clients’ companies
set up booths with “Environment,” “Water, Resources, New Energies” as themes, and each client presented or demonstrated respective
environmental initiatives.
SMFG sets up exhibition booths and cooperates at the international conferences held at the international environmental exhibitions in order to
vitalize eco-businesses in Asian regions and increase international competition by greening of supply-chains. At the 9th EPIF held in Taiwan,
SMBC and JRI jointly set up booths to present environmental businesses. It became the largest exhibition held participated by more than 20
Japanese companies of total of 207 companies and organizations from 15 countries and regions.
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 private placement bonds according to the results of such assessment.
SMBC revised and improved evaluation methods for existing “SMBC Environment Friendliness Assessment Loans and Private Placement
Bonds” especially made for medium-sized and small-to-medium-sized companies which have more assessment needs for the degree of
environment friendliness. As for the fund raising, SMBC conducts quantitative assessment according to the assessment criteria created by
SMBC and follows with the qualitative assessment based on interviews conducted by environment friendliness assessment agency, and the
final and comprehensive assessment results will be provided to clients in the form of “Environmental Management Analysis Report.”
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, measures taken for “risk management” of
such as BCP; and “business manager’s policies and practices” promoting such assessment criteria.
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 JRI.
Terms and conditions for those loans are set forth according to the assessment conducted on the environmental measures taken by companies
in Malaysia and Thailand utilizing the scheme as set forth in the “SMBC Environmental Assessment Loans/Private Placement Bonds” since
2008. The assessment report is 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.
In the field of energy conservation, in which Japanese corporations especially excel, SMBC provides support and financial advisory services
for “Joint Crediting Mechanism,” for the purpose of contributing to the reduction of greenhouse gasses due to technology exportation to
underdeveloped 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 Economico 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.
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 major corporations and financial institutions in Mexico and other countries for promoting 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; or (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.
59
SMFG 2014 Initiatives for Environmental Businesses by Group Companies
Company
Program / Product
Description
SMBC /
Nikko*3
SMFL*4
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
Nikko Eco Fund
Nikko
Nikko DWS New Resources Fund
UBS Climate Change Fund
Nikko World Trust-Nikko Green New
Deal Fund
Promotion of electronic statement
service
Environmental Sustainability Bonds
Promotion of online account activity
statement
Environment conservation activities
offered by socially contributing credit
cards
Promotion of online account statement
Promotion of CSR and environmental
management
Environmental advisory business
Proposals for energy-related policies
Nikko /
Friend*5
Friend
SMCC*6 /
Cedyna
Cedyna
SMBCCF*7
JRI
Minato*8
“Minato Eco-Monogatari” Carbon Offset
Time Deposits
Minato ECO Loan/Private Placement
Bond
Minato ECO product purchase loan/
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
SMBC and SMBC Nikko Securities Inc. 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 leases.
Real property with expired leases or machinery and equipment purchased from clients are being sold to other clients. SMFL strives to become
a leasing company which is environment-friendly implementing measures for recycling and reuse by purchasing and selling the second-hand
machinery.
It promotes the implementation of leasing low-carbon emission equipment which meets the criteria set forth by the Ministry of the Environment,
by utilizing the subsidies provided by the Ministry for such leases.
This is the SRI fund, which was first offered in Japan in 1999, takes into account the environmental perspectives and invests in shares of
potential growth companies which either excel in appropriately responding to environment-related issues or conducting businesses associated
with environment.
This fund invests mainly in shares of companies around the world with growth potential which conduct businesses associated with the 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 and which are anticipated to have substantial growth in the future.
This fund invests in shares of companies located in countries where high growth is anticipated through their environmental preservation
activities, focusing on the “Green New Deal” policy for economic recovery based on measures required for global environment.
Promoting electronic statement services (online account statements) for clients.
SMBC Friend Securities sells “Environmental Sustainability Bonds” issued by the European Bank for Reconstruction and Development (EBRD).
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.
SMCC and Cedyna are promoting the use of online account statements (notice for the final account statement is sent by e-mail and details to
be confirmed on its website) for conserving paper and helping to reduce CO2 emissions.
Cedyna issues socially contributing credit cards for the environment 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. The ratio of contracts made on the internet out of new applications submitted has increased yearly.
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 and energy strategies for Japan.
“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 or preferential underwriting fees for private placement bonds only for
corporations which have obtained certification for an 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 Prefecture, Osaka City and Shiga Prefecture engaged in environmental
protection activities, with the amount equivalent to a certain percentage of deposits received from clients.
It is the loan to offer the same terms and conditions for such as loan term and interest rate for loans to purchase residences preinstalled with
solar power generation systems or for installation costs 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 private placement 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 Company, Limited
*5 SMBC Friend Securities Co., Ltd. *6 Sumitomo Mitsui Card Company, Limited *7 SMBC Consumer Finance Co., Ltd. *8 The MINATO BANK, LTD. *9 Kansai Urban Banking Corporation
60
SMFG 2014 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 volunteer
organizations to help them cover their postage costs. In addi-
tion, SMBC collects unused prepaid telephone cards, and
Sumitomo Mitsui Finance and Leasing (“SMFL”), SMBC Nikko
Securities, SMBC Friend Securities, Sumitomo Mitsui Card,
Cedyna, and SMBC Consumer Finance collect PET bottle caps.
SMBC Nikko Securities, SMBC Friend Securities, Sumitomo
Mitsui Card, Cedyna, and SMBC Consumer Finance collect
used postage stamps from employees, donating them to vol-
unteer organizations. SMBC and SMBC Friend Securities also
donate products given by the companies to their shareholders.
• Group Blood Donation Program
SMBC, SMFL, Sumitomo Mitsui Card, SMBC Consumer
Finance, SMBC Nikko Securities and Cedyna encourage
employees to donate their blood at the workplace. The total of
868 employees from six companies participated in the program
in fiscal 2013.
• Installation of Charitable Vending Machines; Sale of
Products Made by Social Welfare Organizations
The head office of SMBC is installed with vending machines
which make contributions to welfare organizations every time
a drink is purchased from these vending machines. The
head office and the centers of SMBC Consumer Finance
are installed with vending machines which contribute to the
Japan Hearing Dogs for Deaf People. 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 executives and employees
to have ¥100 deducted from their monthly salaries to donate to
volunteer organizations. More than 11,000 employees participate
in this program, as of April 2014. The organizations are selected
based on thorough investigations and discussions by the panel of
experts and volunteering employees. In fiscal 2013, donations were
made to 38 organizations which are supported by the volunteer
employees and work to resolve economic issues in Japan and
overseas.
Overseas
• Organizations which provide support for nursery school
and school meal for slum areas in Cambodia, education
for minorities in Myanmar, and social rehabilitation of former
child soldiers in Uganda
Japan
• Organizations which provide
support
for awareness-
raising activities for the pre-
vention of child abuse, local
community-based childcare
for women, food assistance
for homeless people, and
visually-impaired to become
socially independent
Meal provided at the nursery school in the
slum of the Cambodian capital
A total of 936 employees of Group company Sakura KCS
(approximately 80% of the workforce), have volunteered (as of
May 2014) for welfare and environmental contribution activities.
• Volunteering programs for executives and employees
In fiscal 2013, SMFG presented to its executives and employ-
ees with volunteer activities of organizations, which work to
resolve social issues, of mostly recipients of volunteer funds,
and conducted the program
for supporting activities of the
organizations. The total of 31
programs were developed
during summer (of June to
August) and fall and winter
(of October to December),
participated by the total of 270
people.
Cleaning of facilities for supporting the
visually-impaired
61
SMFG 2014 • Opening of Emergency Accounts and Accepting
Donations for Major Disasters
SMBC has set up an account (with no transfer charge) 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. In
fiscal 2013, we accepted donations for damages caused by
the Sichuan earthquake in China and typhoon Man-yi. We
are continuing to accept donations for the Great East Japan
Earthquake. SMBC and SMBC Nikko Securities made dona-
tions for damages caused by the Sichuan earthquake. For
victims of the typhoon Haiyan in Philippines, SMBC, SMBC
Nikko Securities and Sumitomo Mitsui Card made monetary
contributions, and Minato Bank donated emergency food.
• SMBC Pro Bono Project
The bank is also engaged in pro bono activities as the SMBC
Pro Bono Project for which volunteers offer their business and
professional expertise and skills for the public. In fiscal 2013,
the Pro Bono Team, made up of volunteer employees, gave
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 contribu-
tors. It supported two NPOs in Tokyo which support children-
related issues and another NPO which deals with international
health issues. It provided support for NPOs which strive to
resolve homeless issues in Kansai region, and in fiscal 2013, it
provided support 4 NPOs with volunteer employees.
•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 such as parks and other
areas in the vicinity of SMBC branches, and participation in local
events. Similarly, SMBC Nikko Securities is proactively involved
in local clean-ups and volunteer activities.
SMBC Consumer Finance operates the Customer Service
Plaza, which serves as a place for people in the region to com-
municate, as part of the community-based business activities,
in order to appropriately perceive the needs of the society and
clients. The company strives to sustainably develop with the
society, through providing counseling services such as house-
hold budget analysis, and educational activities associated with
money matters or financial and economic educational activities
made for people in the region or students. The Minato Bank
began its operation of “Kodomo 110” (Children’s shelter) at 38
branches throughout Kobe city as part of making branches
comfortable by giving the feeling of safety and security.
62
•Donation Activities of Foreign Currency Coins
SMBC, as a corporate member of the UNICEF foreign coins
donation executive committee, cooperates with the donation
activities of UNICEF. All monies donated will be sent to UNICEF
after coins are sorted out by respective currency.
• Donation 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 collected donations from cardholders
through the World Gifts Point Service of VJA group companies
to provide to UNICEF, UNESCO, the World Wildlife Fund Japan
and the World Food Program. Sumitomo Mitsui Card made
some donations to UNICEF as well. It also accepts online credit
card donations, and it issues socially- contributing type credit
cards and donates the part of the amount spent by clients using
such credit cards.
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
donations from cardholders using “points” accumulated from
their purchases, and also accepts online donations.
Kansai Urban Banking Corporation has contributed more
than the cumulative total of ¥50 million since fiscal 2003, by
annually contributing to environment conservation organizations
according to the balance for environment-related deposits
• 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 at company cafeteria. All SMBC
branches 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 par-
ticipation in school beautification programs by volunteers from
SMBC. The foundation also provides matching gifts for SMBC
employees. SMBC Foundation for International Cooperation
assists in developing human resources required to achieve
sustainable growth in developing economies as well as to
promote international exchange activities. Since its establish-
ment in 1990, the foundation has provided financial support for
7-8 students from Asian countries every year, enabling them to
attend graduate schools in Japan. The foundation also offers
subsidies to research institutes and researchers undertaking
projects which result in economic development of underdevel-
oped countries.
SMFG 2014
Environmental Activities
• Participation in Environmental Preservation Initiatives
SMFG organizes “SMFG Clean-Up Day” on which Group
employees volunteer to clean up beaches and river beds. In
fiscal 2013, approximately 1,500 employees and their family
members participated in this activity at four locations of Arakawa
in Tokyo, Yodogawa in Osaka, Suma Beach in Hyogo and
Fujimae-higata near Nagoya.
SMBC Friend Securities organized its own clean-up
activities at two locations in Tokyo and Osaka, and 134 people
participated. In addition, Kansai Urban Banking Corporation
participated in the clean-up activities along the shore of Lake
Biwa in Shiga Prefecture. In fall 2010, SMBC Nikko Securities
has designated a “Green Week” as the week for enhancement
of environmental protection and social contribution activities.
In fiscal 2013, the cumulative total
of 6,678 employees and their family
members participated in the clean-
up activities and the collection of
PET bottle caps. Similarly, SMFL,
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 2014 Junior Eco Club’s All-Japan Festival,
organized by Japan Environment Association, by providing an
information booth at the event.
• Environmental Education
Kansai Urban Banking Corporation organizes the “Lake Biwa
Learning Experience in Summer” for elementary school children
at the Lake Biwa in Shiga Prefecture for educating children the
environmental awareness through such experience.
Contributing to Cultural, Artistic, and
Educational Activities
•SMBC Charity Concert – A Toy Box of Favorite Works
Since fiscal 2006, SMBC has been inviting our clients for free
of charge to the annually held musical concerts for charity per-
formed by volunteer employees. The donations are collected
from the audiences of concerts and also from the sales of
employees’ handcrafted products. In fiscal 2014, donations were
sent to children affected by the Great East Japan Earthquake and
to children in Cambodia and Vietnam.
• 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 Minato Bank support
the promotion 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 elemen-
tary 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?,” cosponsor-
ing Kidzania (a vocational experience theme park for children),
and supporting Shinagawa Financial Park (economic training
programs for junior high school students).
SMBC Nikko Securities held the “Families’ Exciting
Experience Day” event during summer holidays, in which 1,912
elementary school students and their families participated in fiscal
2013. 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 economy and
finance for students and adults, primarily at its “Customer Service
Plaza” offices. The total of 2,740 of such events were held in
fiscal 2013, with the participation of 126,270 people.
Kansai Urban Banking Corporation organizes a tour of the
bank for elementary school students, and also offers a work
experience program for junior high school students. SMBC,
SMFL, SMBC Nikko Securities, Sumitomo Mitsui Card, JRI, and
Minato Bank also sent instructors to teach classes at universities.
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. All ATMs
in domestic branches and ATMs located outside of SMBC
branches can appropriately 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)*
63
SMFG 2014
• Installation of hearing aids at branches (Minato Bank)
• Installation of walking-stick holding brackets (SMBC and
Minato Bank), the board with ear-mark logo, and writing
tables for sofa (SMBC)
• 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, personnel trained in the knowledge and the
means to support senior citizens and physically-challenged cli-
ents are allocated to all branches of SMBC and Minato Bank.
• Business development for accommodating the society
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.
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 estab-
lished the “special leave of
absence for disaster relief
volunteer activities,” and it
began allowing executives and
employees 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 420 employees participated
in total between fiscal years of 2011 and 2013. In August 2012
and 2013, approximately 45 families or 120 people in total par-
ticipated in the programs.
SMBC Nikko Securities implemented the volunteer vacation
system in April 2011, and newly hired employees and attend-
ing executives and regular staff participated in the volunteer
activities in the disaster-affected areas. During fiscal 2011 to
2013, the cumulative of 947 people participated in the volunteer
activities.
• Support for the Affected Areas by staff of “Customer
Service Plaza”
SMBC Consumer Finance provided, out of all 18 customer
service plaza nationwide, the free rental space in Sendai Service
Plaza to the organization for supporting activities in the disaster-
affected areas conducted by the said organization.
• Donation Activities by Using Credit Cards
Sumitomo Mitsui Card accepted donations from clients using
their credit cards, and also conducted forestation campaign for
the disaster affected areas.
• 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 2013, we made donations collected from our employees
and the matching donations made by the bank to NPO, with
which executives and employees cooperated for volunteer
activities in the disaster-affected areas.
• Inviting disaster-affected people to performance for
supporting reconstruction
Sumitomo Mitsui Card invited 100 disaster-affected people who
have evacuated to the Tokyo metropolitan areas for the per-
formance held at the National Theatre, for free of charge. The
performance titled “Tohoku no Geino IV” was on the traditional
arts of the disaster-affected areas.
• Donation of extra food supply
SMBC Friend Securities has donated dry bread and mineral
water to disaster-affected areas to replace the existing such
supplies earlier than their expiration dates.
•Volunteering for interaction with evacuees in Tokyo
The social meetings to interact with the people evacuated to
Tokyo from disaster affected areas have been regularly held,
participated by YUI volunteer members of SMBC.
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 Singapore Branch contributed to local communities through organized and participated in blood donation drive, charity marathon and food donation to support children.
• 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 participated in events which raise awareness for the prevention of heart disease and made donations to event-sponsoring groups.
• Employees of Sumitomo Mitsui Banking Corporation Europe (SMBCE) conducted volunteer activities in their spare time. SMBCE contributed to charitable organizations through
an in-house fund, and also used a matching-gift program under which it donated 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.
64
SMFG 2014
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 Corporation.
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
SMBC considers a month-long training seminar for newly–hired
employees and any other human resources development as
essential. The education programs for younger staff proceed to
improve the educational system to be more practical by putting
emphasis on the integration of OJT and group training seminars,
educating basics of deposit and exchange operations on the
job, and developing the system to support such training semi-
nars and the instructor system.
SMFL has established “SMFL Standards,” which set forth
the human resources development plan and the procedures to
develop the kind of human resources preferred and particularly
made 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 established an in-house busi-
ness school which supplements OJT training. SMBC Nikko
Securities, as a comprehensive securities and investment bank-
ing firm, is further strengthening its educational programs to
develop employees with expert knowledge and to improve their
professional skills by providing 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 is proactively working on the devel-
opment of highly-specialized younger staff through internally-
certified corporate skill course, training seminar and OJT at work
as well as improving coaching and human resources develop-
ment capabilities and management capabilities of managers and
supervisors in order to become the kind of securities firm which
would be most appreciated by clients. Following the amend-
ments to the Money Lending Business Act, Sumitomo Mitsui
Card has enhanced the development of professional expert
employees in the credit business. It has taken measures to
proactively support its employees in becoming licensed money
lending officers by holding in-house seminars to educate them
to become the credit business professionals. Cedyna strives
to “take the initiative to develop the highly motivated profes-
sional human resources who produce results accordingly”; to
strengthen business execution capabilities and provide the type
of education by level, department and subject for increasing
earnings; and to work on the organizational human resources
development (development of OJD system). SMBC Consumer
Finance is implementing the competency-development training
based on its personnel system for training human resources to
have high market values and responsibilities. Furthermore, we
help employees 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 develop-
ment of employees. JRI recognizes that the source for the
added values of its solutions and proposals is human resources;
therefore, it works on the well-planned development of human
resources by establishing the Human Resources Development
Department and Human Resources Planning Department under
Systems Development Unit and Research and Consulting
Unit, respectively. Minato Bank implements the training system
according to work types and level of positions into the Minato
Retail-business College (“MRC”) system which improves the
quality of consultation services offered to its individual clients.
Kansai Urban Banking works on well-planned human resources
development by establishing “Kansai Urban Business School”
to teach basic education and enhance personal development
especially designed for staff in their first six years of employ-
ment with the bank in order to pursue its management policy
of development of energetic group of employees. 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
65
SMFG 2014
•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 and sports events 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 committed to providing workplace with diversity in
gender, nationality, and other areas. SMBC in April 2008, SMBC
Nikko Securities in July 2013, and The Minato Bank in October
2013, respectively established the “Diversity and Inclusion
Department” within the Human Resources Department, in order
to develop corporate culture having strength in diversity including
the promotion of manifold roles and responsibilities for women.
SMBC newly established the “Diversity and Inclusion
Committee” headed by the bank President in order to enhance
initiatives for the entire bank. It is currently working on the initiative
for women to be able to actively participate in the workplace by
inviting outside expert professional to participate in the committee.
We hope that 20% of managerial positions to be held by
women by the end of fiscal 2020.
•Personnel System
In order to motivate employees to take more challenges in per-
forming 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 individu-
als 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
SMBC newly established the “Global Human Resources
Department” in the Human Resources Department and “Global
Training Group” at the Training Institute, respectively, for improv-
ing and promoting the human resources system from the bank’s
overall perspective in order to realize the “true globalization.”
In order to enhance development of global human resources,
SMFL and SMBC Nikko
Securities improved the
overseas trainee system
mainly for younger employ-
ees, in addition to sending
employees to attend lan-
guage schools.
SMBC’s Global Corporate Banker Training
Seminar
66
•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 com-
pany 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
2014, physically- and mentally-challenged employees accounted
for 2.10% of our total number of employees, above than the
legally mandated level of 2.0%.
•Providing Support for a Good Work-Life Balance
The Group is improving its “Employees Support Program” to
support balancing of both work and childcare. We are prepar-
ing a guidebook describing the system for employees to take
advantage of the system according to their stage of life.
■ Preparation of “Work-Life Balance Guidebook”
SMBC, SMFL, SMBC Friend Securities, Sumitomo Mitsui
Card, JRI, Kansai Urban Banking (fiscal 2013)
Group companies have already implemented programs for
parental leave, leave for nursing, shorter working hours and
other programs providing better benefits than those mandated
by law. Further, these programs improve the support system for
balancing both work and childcare by implementing the child-
care allowance system and rehiring former employees system
(for details, refer to page 70).
Additionally, these companies organize the “Visit the
Workplace Day” event for their children to visit the workplace of
parents for children to gain an understanding of the workplace.
They also encourage their employees to take summer vacations
and reduce their working hours.
■ Organization of the “Visit the Workplace Day” event for chil-
dren to visit their parents’ workplace
SMBC, Sumitomo Mitsui Finance and Leasing, SMBC Friend
Securities, Sumitomo Mitsui Card, SMBC Consumer Finance,
JRI, Kansai Urban Banking
■ Encouraging employees to take summer vacation and reduce
working hours
Sumitomo Mitsui Finance and Leasing, Cedyna
■ “Go Home Early with Family Day” event
SMBC, SMBC Nikko Securities
We also provide venues for working mothers and fathers to be
able to exchange and share information on childcare.
■ “Working Mothers’ Meeting”
SMBC
■ “Mom & Dad Luncheon”
JRI
SMFG 2014
We also support facilitating the smooth return to work for those
who have taken time off from work for childcare.
■ Implementation of online support programs for employees
who have taken time off for childcare
SMBC Nikko Securities
■ Regular training seminars conducted for employees on leave
for childcare
SMBC, SMBC Consumer Finance, Minato Bank, Kansai
Urban Banking
■ Seminars for those planning to take maternity leave
SMBC, SMBC Nikko Securities, Kansai Urban Banking
Group companies have been certified with “Kurumin” which is
given to those companies that support their employees ability
to manage both work and childcare, pursuant to the Act for
Measures to Support the Development of the Next Generation,
as a result of these initiatives implemented.
■ “Kurumin certification” pursuant to the Act for Measures to
Support the Development of the Next Generation
SMBC, SMBC Nikko Securities, Sumitomo Mitsui Card,
Cedyna, SMBC Consumer Finance, JRI, Minato Bank, Kansai
Urban Banking
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
Number of women in
managerial positions**
Ratio of employees with
disabilities (% of total)***
*
2012
2013
2014
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.
23,926
12,493
52.22%
11,433
47.78%
37 yrs 1 mos.
40 yrs 3 mos.
33 yrs 8 mos.
14 yrs 0 mos.
16 yrs 7 mos.
11 yrs 2 mos.
398
447
480
1.99%
2.03%
2.10%
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
2014
April 1
Number of new hires
652
Number of newly employed female graduates****
231
Ratio of newly employed females to total new employees 32.6% 37.1% 35.4%
**** Includes sogoshoku staff, sogoshoku (retail course) staff and consumer service
2013
661
245
2012
610
199
Children’s Visitation Day
staff. Business Career Path employees are excluded.
Fiscal
Number of employees taking parental leave
Number of career hires
2011
683
<27>
11
2012
920
<55>
17
2013
1,127
<30>
26
SMBC Consumer Finance recovery support
seminar
Enhancing Awareness of Individual Rights
SMBC has implemented in its corporate principles of action the
statements that “we will respect the individual human dignity of
our clients and employees” and “we will not allow any discrimi-
nation.” 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 promoting individual human rights
are also organized to motivate our employees to reflect on
individual human rights and to come up with the statement
for such campaigns. Kansai Urban Banking is implementing
measures to further develop the awareness of individual human
rights by organizing human rights awareness study sessions
for each regional group and by inviting employees to come up
with an individual human rights statement. SMFG and its Group
companies participate in the “United Nations Global Compact,”
and also support the Compact’s 10 principles in the areas of
human rights, labor standards, environment and anti-corruption
measures.
◆ Sumitomo Mitsui Finance and Leasing
2013
March 31
Number of employees*
2012
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
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.
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.
2014
1,606
1,019
63.45%
587
36.55%
39 yrs 8 mos.
41 yrs 11 mos.
35 yrs 10 mos.
14 yrs 9 mos.
16 yrs 9 mos.
11 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).
2014
April 1
Number of new hires
24
Number of newly employed female graduates
6
Ratio of newly employed females to total new employees 15.8% 20.0% 25.0%
2013
20
4
2012
19
3
Fiscal
Number of employees taking parental leave
2011
39
<0>
2012
40
<0>
2013
51
<0>
67
SMFG 2014
◆ SMBC Nikko Securities
March*
Number of employees**
2012
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
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.
2013
2014
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.
7,811
4,981
63.77%
2,830
36.23%
39 yrs 8 mos.
40 yrs 8 mos.
37 yrs 10 mos.
12 yrs 8 mos.
12 yrs 11 mos.
12 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.
2014
April 1
Number of new hires***
516
Number of newly employed female graduates
224
Ratio of newly employed females to total new employees 42.5% 37.9% 43.4%
*** Professional staff (Classes I-II), FA, and specialists
2013
293
111
2012
388
165
Fiscal
Number of employees taking parental leave
2011
248
2012
262
2013
287
<1>
<0>
<3>
◆ SMBC Friend Securities
March 31
Number of employees*
2012
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
2013
2014
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.
17 yrs 1 mos.
10 yrs 8 mos.
1,855
1,316
70.94%
539
29.06%
38 yrs 11 mos.
41 yrs 1 mos.
33 yrs 8 mos.
15 yrs 3 mos.
17 yrs 1 mos.
10 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 agencies,
and national staff at overseas branches.
2014
April 1
Number of new hires
245
Number of newly employed female graduates**
95
Ratio of newly employed females to total new employees 49.0% 46.5% 38.8%
** Both non-area specified and area specified staff
2012
151
74
2013
159
74
◆ Sumitomo Mitsui Card
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
Male
Female
Number of women in
managerial positions**
Ratio of employees with
disabilities (% of total)***
*
2012
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.
2013
2014
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.
2,367
1,176
49.68%
1,191
50.32%
38 yrs 1 mos.
40 yrs 11 mos.
35 yrs 4 mos.
12 yrs 8 mos.
13 yrs 7 mos.
11 yrs 10 mos.
23
24
26
1.88%
2.24%
2.30%
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 March 31. Total of senior staff and group managers (including credit
officers)
*** Computed based on single month of March
2014
April 1
Number of new hires
59
Number of newly employed female graduates
32
Ratio of newly employed females to total new employees 49.0% 52.7% 54.2%
2012
49
24
2013
55
29
Fiscal
Number of employees taking parental leave
Number of career hires
2011
59
<6>
12
2012
63
<5>
18
2013
65
<9>
16
◆ Cedyna
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
Male
Female
Number of women in
managerial positions **
*
2012
2013
2014
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.
3,192
1,967
61.62%
1,225
38.38%
41 yrs 2 mos.
43 yrs 4 mos.
37 yrs 6 mos.
17 yrs 4 mos.
19 yrs 4 mos.
14 yrs 1 mos.
19
22
29
Excluding employees seconded from other companies, employees on short-
term contracts and part-time employees.
Fiscal
Number of employees taking parental leave
2011
25
<5>
2012
25
<0>
2013
21
<0>
** As of March 31
April 1
Number of new hires
Number of newly employed female graduates
Ratio of newly employed females to total new employees
2012
16
0
2013
20
3
2014
35
34
0.0% 15.0% 97.1%
Fiscal
Number of employees taking parental leave
Number of career hires
2011
63
<0>
—
68
2013
100
2012
71
<0>
— 120
<4>
SMFG 2014 ◆ SMBC Consumer Finance
2012
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
Male
Female
Number of women in
managerial positions**
Ratio of employees with
disabilities (% of total)***
*
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.
2013
2014
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.
2,531
1,426
56.34%
1,105
43.66%
38 yrs 2 mos.
39 yrs 11 mos.
36 yrs 2 mos.
11 yrs 4 mos.
14 yrs 1 mos.
7 yrs 8 mos.
—
—
39
*
2.39%
2.12%
1.86%
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 March 31
*** As of March 1 of each respective fiscal year
2014
April 1
Number of new hires
40
Number of newly employed female graduates
26
Ratio of newly employed females to total new employees 68.8% 50.0% 65.0%
2012
16
11
2013
28
14
Fiscal
Number of employees taking parental leave
Number of career hires
2011
83
<0>
—
2012
88
<1>
14
2013
68
<1>
5
◆ Japan Research Institute
2012
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
2013
2014
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.
2,247
1,705
75.88%
542
24.12%
40 yrs 3 mos.
41 yrs 0 mos.
38 yrs 1 mos.
11 yrs 3 mos.
11 yrs 7 mos.
10 yrs 0 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 agencies,
and national staff at overseas branches.
2014
April 1
Number of new hires
68
Number of newly employed female graduates**
17
Ratio of newly employed females to total new employees 39.5% 31.3% 25.0%
** Includes only sogoshoku staff. Ippanshoku staff are excluded.
2013
48
15
2012
43
17
◆ THE MINATO BANK
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
2012
2013
2014
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.
1,928
1,215
63.02%
713
36.98%
40 yrs 11 mos.
44 yrs 1 mos.
35 yrs 7 mos.
16 yrs 7 mos.
19 yrs 8 mos.
11 yrs 3 mos.
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.
2014
April 1
Number of new hires
88
Number of newly employed female graduates
41
Ratio of newly employed females to total new employees 52.9% 45.1% 46.6%
2013
82
37
2012
68
36
2011
Fiscal
Number of employees taking parental leave**
26
<2>
** Selected from those whose leave began during the fiscal year
2012
21
<1>
2013
31
<0>
◆ Kansai Urban Banking
March 31
Number of employees*
2012
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
Male
Female
Number of women in
managerial positions**
*
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.
2013
2014
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.
19 yrs 8 mos.
11 yrs 3 mos.
2,567
1,701
66.26%
866
33.74%
40 yrs 2 mos.
43 yrs 3 mos.
34 yrs 3 mos.
16 yrs 11 mos.
19 yrs 5 mos.
11 yrs 9 mos.
117
124
138
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.
** As of March 31, but applies only to those with deputy positions and higher rank
2014
April 1
Number of new hires
118
Number of newly employed female graduates
70
Ratio of newly employed females to total new employees 60.4% 57.3% 59.3%
2013
96
55
2012
91
55
Fiscal
Number of employees taking parental leave
2011
37
<0>
2012
54
<1>
2013
91
<0>
Fiscal
Number of employees taking parental leave
2011
54
<6>
2012
50
<4>
2013
35
<7>
• The combined employment ratio for persons with disabilities for the above 10 companies was 2.02% as of March 2014.
69
SMFG 2014 Restrictions on
overtime
Until March 31 of the
6th grade
Exemption from
late-night work
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
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 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
Until 3 years of age
SMBC Nikko
Securities
Until the entry into elemen-
tary school (5 days per
annum per child; 10 days
for two or more children)
*May be extended as needed
Until the entry into elemen-
tary school (5 days per
annum per 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
Until March 31 of the
3rd grade
Until March 31 of the
3rd grade
Until March 31 of the
3rd grade
Until March 31 of the
3rd grade
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
70
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)
• Short-term childcare leave
• Leave for nursing care
• Shorter working hours allowed for
nursing care
• System for rehiring former employees
• 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
• Shorter working hours allowed 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
• Child-care allowance
• System for rehiring former employees
• Short-term childcare leave (5 days)
• System for rehiring former employees
• Leave for nursing care
• Home helpers provided
SMFG 2014 Financial Section and Corporate Data
Financial Data
SMFG
Compensation
SMFG
Consolidated Balance Sheets ..................................... 72
Compensation (Consolidated) ..................................... 254
Consolidated Statements of Income and
Consolidated Statements of Comprehensive Income ... 74
SMBC
Consolidated Statements of
Changes in Net Assets .............................................. 75
Consolidated Statements of Cash Flows .................... 78
Notes to Consolidated Financial Statements .............. 80
Independent Auditor’s Report ..................................... 140
SMBC
Compensation ............................................................. 257
Corporate Data
Sumitomo Mitsui Financial Group, Inc.
Board of Directors, Corporate Auditors,
and Executive Officers .......................................... 261
Supplemental Information ........................................... 141
SMFG Organization ................................................. 261
SMFG
Income Analysis (Consolidated) .................................. 147
Assets and Liabilities (Consolidated)........................... 150
Capital (Nonconsolidated) ........................................... 153
SMBC
Sumitomo Mitsui Banking Corporation
Board of Directors, Corporate Auditors,
and Executive Officers .......................................... 262
SMBC Organization ................................................ 264
Income Analysis (Consolidated) .................................. 156
Principal Subsidiaries and Affiliates
Assets and Liabilities (Consolidated)........................... 159
Principal Domestic Subsidiaries ............................. 266
Income Analysis (Nonconsolidated) ............................ 161
Principal Overseas Subsidiaries ............................. 267
Deposits (Nonconsolidated) ........................................ 165
Principal Affiliates .................................................... 268
Loans (Nonconsolidated)............................................. 167
Securities (Nonconsolidated) ...................................... 172
International Directory ................................................. 269
Ratios (Nonconsolidated) ............................................ 174
Capital (Nonconsolidated) ........................................... 176
Others (Nonconsolidated)............................................ 177
Trust Assets and Liabilities (Nonconsolidated) ............ 179
Capital Ratio Information
SMFG
Capital Ratio Information (Consolidated) .................... 180
SMBC
Capital Ratio Information (Consolidated) .................... 222
Capital Ratio Information (Nonconsolidated) .............. 236
71
SMFG 2014
Consolidated Balance Sheets
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
March 31
Millions of yen
2014
2013
Millions of
U.S. dollars (Note 1)
2014
Assets
Cash and due from banks (Notes 9 and 27) .........................................................
Deposits with banks (Notes 9 and 27)..................................................................
Call loans and bills bought (Notes 9 and 27) ........................................................
Receivables under resale agreements (Note 27) ..................................................
Receivables under securities borrowing transactions (Note 27) ..........................
Monetary claims bought (Notes 9 and 27) ...........................................................
Trading assets (Notes 3, 9 and 27) .......................................................................
Money held in trust (Notes 27 and 28) .................................................................
Securities (Notes 4, 9, 27 and 28) ........................................................................
Loans and bills discounted (Notes 5, 9 and 27) ...................................................
Foreign exchanges (Note 27) ...............................................................................
Lease receivables and investment assets (Notes 9, 26 and 27) ..........................
Other assets (Notes 6, 9 and 29) ..........................................................................
Tangible fixed assets (Notes 7, 9 and 15) .............................................................
Intangible fixed assets (Note 8) ............................................................................
Net defined benefit asset (Note 30) ......................................................................
Deferred tax assets (Note 32) ...............................................................................
Customers’ liabilities for acceptances and guarantees .......................................
Reserve for possible loan losses (Note 27) ..........................................................
Total assets ..........................................................................................................
¥ 26,993,164
5,997,949
1,248,235
522,860
3,780,260
3,552,658
6,957,419
23,120
27,152,781
68,227,688
1,790,406
1,827,251
4,181,512
2,346,788
819,895
119,932
173,180
6,566,818
(747,536)
¥161,534,387
¥ 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
$ 262,375
58,300
12,133
5,082
36,744
34,532
67,627
225
263,927
663,177
17,403
17,761
40,645
22,811
7,969
1,166
1,683
63,830
(7,266)
$1,570,124
72
SMFGSMFG 2014 (Continued)
March 31
Millions of yen
2014
2013
Millions of
U.S. dollars (Note 1)
2014
Liabilities and net assets
Liabilities
Deposits (Notes 9, 10 and 27) ..............................................................................
Call money and bills sold (Notes 9 and 27) ..........................................................
Payables under repurchase agreements (Notes 9 and 27) ..................................
Payables under securities lending transactions (Notes 9 and 27) .......................
Commercial paper (Note 27) ................................................................................
Trading liabilities (Notes 9, 11 and 27)..................................................................
Borrowed money (Notes 9, 12 and 27).................................................................
Foreign exchanges (Note 27) ...............................................................................
Short-term bonds (Notes 13 and 27)....................................................................
Bonds (Notes 13 and 27) ......................................................................................
Due to trust account (Note 27) .............................................................................
Other liabilities (Notes 9, 14, 26 and 29) ..............................................................
Reserve for employee bonuses ............................................................................
Reserve for executive bonuses ............................................................................
Reserve for employee retirement benefits (Note 30) ............................................
Net defined benefit liability (Note 30) ...................................................................
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 32) ...........................................................................
Deferred tax liabilities for land revaluation (Note 15) ............................................
Acceptances and guarantees (Note 9) .................................................................
Total liabilities ......................................................................................................
Net assets (Note 24)
Capital stock (Note 16) ........................................................................................
Capital surplus .....................................................................................................
Retained earnings ................................................................................................
Treasury stock .....................................................................................................
Total stockholders’ equity ...................................................................................
Net unrealized gains on other securities (Notes 28 and 32) .................................
Net deferred losses on hedges (Notes 29 and 32) ...............................................
Land revaluation excess (Note 15) .......................................................................
Foreign currency translation adjustments ............................................................
Remeasurements of defined benefit plans ...........................................................
Total accumulated other comprehensive income ..............................................
Stock acquisition rights (Note 31) ........................................................................
Minority interests .................................................................................................
Total net assets ....................................................................................................
Total liabilities and net assets .............................................................................
See accompanying notes to consolidated financial statements.
¥108,045,465
4,112,428
1,710,101
5,330,974
2,374,051
4,779,969
7,020,841
451,658
1,145,200
5,090,894
699,329
4,712,069
69,419
4,921
—
45,385
2,004
20,355
14,858
190,182
771
103,390
38,276
6,566,818
152,529,368
2,337,895
758,349
3,480,085
(175,115)
6,401,215
949,508
(60,946)
35,749
27,239
(73,579)
877,971
1,791
1,724,041
9,005,019
¥161,534,387
¥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
$1,050,209
39,973
16,622
51,817
23,076
46,462
68,243
4,390
11,131
49,484
6,798
45,802
675
48
—
441
19
198
144
1,849
7
1,005
372
63,830
1,482,595
22,724
7,371
33,827
(1,702)
62,220
9,229
(592)
347
265
(715)
8,534
17
16,758
87,529
$1,570,124
73
SMFGConsolidated Balance SheetsSMFG 2014 Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
(Consolidated Statements of Income)
Millions of yen
2014
2013
Millions of
U.S. dollars (Note 1)
2014
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) ........................................................................
Gains on reversal of reserve for possible loan losses ..........................................
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 (Note 18) .......................................................................................
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 32):
¥1,805,015
1,267,568
343,905
7,749
7,293
38,162
60,545
79,790
2,472
1,112,429
211,881
1,203,500
136,212
175,595
4,647,109
320,846
144,147
44,913
4,106
3,494
92,423
31,761
127,840
—
988,380
1,569,945
—
217,402
3,224,414
1,422,694
¥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
Income taxes-current .......................................................................................
Income taxes-deferred .....................................................................................
Income before minority interests ........................................................................
Minority interests in net income ...........................................................................
Net income ...........................................................................................................
290,186
168,618
963,889
128,532
¥ 835,357
279,898
(133,930)
918,065
124,006
¥ 794,059
$17,545
12,321
3,343
75
71
371
589
776
24
10,813
2,059
11,698
1,324
1,707
45,170
3,119
1,401
437
40
34
898
309
1,243
—
9,607
15,260
—
2,113
31,342
13,829
2,821
1,639
9,369
1,249
$ 8,120
(Consolidated Statements of Comprehensive Income)
Year ended March 31
Millions of yen
2014
2013
Millions of
U.S. dollars (Note 1)
2014
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 ...............................
¥ 963,889
339,405
201,566
(27,473)
18
170,062
(4,768)
1,303,295
1,125,735
177,559
¥ 918,065
540,041
445,678
(1,076)
—
99,626
(4,187)
1,458,107
1,262,572
195,534
See accompanying notes to consolidated financial statements.
$ 9,369
3,299
1,959
(267)
0
1,653
(46)
12,668
10,942
1,726
74
SMFGSMFG 2014 Consolidated Statements of Changes in Net Assets
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Millions of yen
Stockholders’ equity
Capital stock Capital surplus
Year ended March 31, 2014
Balance at the beginning of the fiscal year ................................ ¥2,337,895
Adjustment due to changes in accounting policies as a result
of revisions to accounting standards .......................................
Changes in the fiscal year:
Cash dividends ...........................................................................
Net income .................................................................................
Purchase of treasury stock .........................................................
Disposal 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..................................
Transfer from 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 .......................................... ¥2,337,895
Retained
earnings
Treasury stock
Total
stockholders’
equity
¥758,630 ¥2,811,474
¥(227,373) ¥5,680,627
(281)
(168)
(169,973)
835,357
6
4
(5)
(7)
3,398
(500)
52,759
(168)
(169,973)
835,357
(500)
52,477
6
4
(5)
(7)
3,398
(281)
668,779
¥758,349 ¥3,480,085
52,258
720,755
¥(175,115) ¥6,401,215
Millions of yen
Accumulated other comprehensive income
Year ended March 31, 2014
Balance at the beginning of the fiscal year ................................
Adjustment due to changes in accounting policies as a result
of revisions to accounting standards .......................................
Changes in the fiscal year:
Cash dividends ...........................................................................
Net income .................................................................................
Purchase of treasury stock .........................................................
Disposal 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..................................
Transfer from 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 ..........................................
Year ended March 31, 2014
Balance at the beginning of the fiscal year ................................
Adjustment due to changes in accounting policies as a result
of revisions to accounting standards .......................................
Changes in the fiscal year:
Cash dividends ...........................................................................
Net income .................................................................................
Purchase of treasury stock .........................................................
Disposal 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..................................
Transfer from 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 ..........................................
See accompanying notes to consolidated financial statements.
Net unrealized
gains on other
securities
¥755,753
Net deferred
losses on
hedges
¥(32,863)
Land
revaluation
excess
¥39,129
Foreign
currency
translation
adjustments
¥ (97,448)
Total accumulated
other
comprehensive
income
Remeasurements
of defined benefit
plans
¥ — ¥664,570
193,754
193,754
¥949,508
(28,082)
(28,082)
¥(60,946)
(3,380)
(3,380)
¥35,749
124,687
124,687
¥ 27,239
(73,579)
(73,579)
¥(73,579)
213,400
213,400
¥877,971
Millions of yen
Stock
acquisition
rights
¥1,260 ¥2,096,760 ¥8,443,218
Total
net assets
Minority
interests
802
634
(169,973)
835,357
(500)
52,477
6
4
(5)
(7)
3,398
531
531
(159,589)
(373,521)
561,166
(373,521)
¥1,791 ¥1,724,041 ¥9,005,019
75
SMFGSMFG 2014 Capital stock Capital surplus
Year ended March 31, 2013
Balance at the beginning of the fiscal year ................................ ¥2,337,895
Changes in the fiscal year:
Cash dividends ...........................................................................
Net income .................................................................................
Purchase of treasury stock .........................................................
Disposal 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..................................
Transfer from 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 .......................................... ¥2,337,895
Millions of yen
Stockholders’ equity
Retained
earnings
Treasury stock
Total
stockholders’
equity
¥759,800 ¥2,152,654
¥(236,037) ¥5,014,313
(135,252)
794,059
(1,170)
(263)
8,927
10
0
(9)
(16)
29
(135,252)
794,059
(263)
7,756
10
0
(9)
(16)
29
(1,170)
658,820
¥758,630 ¥2,811,474
8,663
666,313
¥(227,373) ¥5,680,627
Millions of yen
Accumulated other comprehensive income
Foreign
currency
translation
adjustments
¥(141,382)
Net deferred
losses on
hedges
¥(32,122)
Land
revaluation
excess
¥39,158
Total accumulated
other
comprehensive
income
¥196,087
Net unrealized
gains on other
securities
¥330,433
425,320
425,320
¥755,753
(741)
(741)
¥(32,863)
(29)
(29)
¥39,129
43,933
43,933
¥(97,448)
468,483
468,483
¥664,570
Millions of yen
Stock
acquisition
rights
¥ 692 ¥2,043,883 ¥7,254,976
Total
net assets
Minority
interests
(135,252)
794,059
(263)
7,756
10
0
(9)
(16)
29
567
567
521,928
52,877
1,188,242
52,877
¥1,260 ¥2,096,760 ¥8,443,218
Year ended March 31, 2013
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 ..........................................................
Increase due to increase in subsidiaries ....................................
Increase due to decrease in subsidiaries ...................................
Decrease due to increase in subsidiaries ...................................
Decrease due to decrease in subsidiaries..................................
Transfer from 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 ..........................................
Year ended March 31, 2013
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 ..........................................................
Increase due to increase in subsidiaries ....................................
Increase due to decrease in subsidiaries ...................................
Decrease due to increase in subsidiaries ...................................
Decrease due to decrease in subsidiaries..................................
Transfer from 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 ..........................................
See accompanying notes to consolidated financial statements.
76
SMFGConsolidated Statements of Changes in Net AssetsSMFG 2014 Year ended March 31, 2014
Balance at the beginning of the fiscal year ................................
Adjustment due to changes in accounting policies as a result
of revisions to accounting standards .......................................
Changes in the fiscal year:
Cash dividends ...........................................................................
Net income .................................................................................
Purchase of treasury stock .........................................................
Disposal 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..................................
Transfer from 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 ..........................................
Year ended March 31, 2014
Balance at the beginning of the fiscal year ................................
Adjustment due to changes in accounting policies as a result
of revisions to accounting standards .......................................
Changes in the fiscal year:
Cash dividends ...........................................................................
Net income .................................................................................
Purchase of treasury stock .........................................................
Disposal 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..................................
Transfer from 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 ..........................................
Year ended March 31, 2014
Balance at the beginning of the fiscal year ................................
Adjustment due to changes in accounting policies as a result
of revisions to accounting standards .......................................
Changes in the fiscal year:
Cash dividends ...........................................................................
Net income .................................................................................
Purchase of treasury stock .........................................................
Disposal 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..................................
Transfer from 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 ..........................................
See accompanying notes to consolidated financial statements.
Millions of U.S. dollars (Note 1)
Stockholders’ equity
Capital stock Capital surplus
$7,374
$22,724
Retained
earnings
$27,328
Treasury stock
$(2,210)
Total
stockholders’
equity
$55,216
(3)
(2)
(1,652)
8,120
0
0
(0)
(0)
33
(5)
513
(2)
(1,652)
8,120
(5)
510
0
0
(0)
(0)
33
—
$22,724
(3)
$7,371
6,501
$33,827
508
$(1,702)
7,006
$62,220
Millions of U.S. dollars (Note 1)
Accumulated other comprehensive income
Net unrealized
gains on other
securities
Net deferred
losses on
hedges
Land
revaluation
excess
Foreign
currency
translation
adjustments
Remeasurements
of defined benefit
plans
Total accumulated
other
comprehensive
income
$7,346
$(319)
$380
$ (947)
$ —
$6,460
1,883
1,883
$9,229
(273)
(273)
$(592)
(33)
(33)
$347
1,212
1,212
$ 265
(715)
(715)
$(715)
2,074
2,074
$8,534
Millions of U.S. dollars (Note 1)
Stock
acquisition
rights
$12
Minority
interests
$20,381
Total
net assets
$82,069
8
6
(1,652)
8,120
(5)
510
0
0
(0)
(0)
33
5
5
$17
(3,631)
(3,631)
$16,758
(1,551)
5,455
$87,529
77
SMFGConsolidated Statements of Changes in Net AssetsSMFG 2014 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 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 net defined benefit asset and liability ........................................
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 (gains) losses from money held in trust .....................................................
Net exchange gains ..........................................................................................
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
2014
2013
Millions of
U.S. dollars (Note 1)
2014
¥ 1,422,694
201,421
3,348
29,033
(1,031)
(1,564)
(10,241)
(191,436)
8,833
848
—
(9,477)
(423)
1,036
3,662
(55,241)
(1,805,015)
320,846
(90,773)
(69)
(436,009)
8,595
962,762
(1,496,425)
(3,514,311)
4,804,365
1,938,016
1,841,210
(106,782)
(158,611)
(103,076)
728,086
325,572
897,138
521,251
75,411
(113,452)
18,900
648,969
53,680
1,840,198
(324,535)
466,620
8,704,024
(400,272)
8,303,752
¥ 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
$ 13,829
1,958
33
282
(10)
(15)
(100)
(1,861)
86
8
—
(92)
(4)
10
36
(537)
(17,545)
3,119
(882)
(1)
(4,238)
84
9,358
(14,545)
(34,159)
46,699
18,838
17,897
(1,038)
(1,542)
(1,002)
7,077
3,165
8,720
5,067
733
(1,103)
184
6,308
522
17,887
(3,155)
4,536
84,604
(3,891)
80,713
78
SMFGSMFG 2014 (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 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 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 ..................................................................................................
Proceeds from contributions paid by minority stockholders ............................
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
2014
2013
Millions of
U.S. dollars (Note 1)
2014
¥(19,929,619)
26,799,071
8,130,520
(1,010)
367
(465,147)
160,832
(127,664)
5
(825)
¥(52,234,418)
46,632,816
7,224,688
(3,791)
3,191
(291,609)
96,692
(106,291)
212
(7,549)
$(193,717)
260,489
79,029
(10)
4
(4,521)
1,563
(1,241)
0
(8)
(46,678)
(95,721)
(454)
672
14,520,523
34,916
1,253,136
7
141,140
—
(32,000)
33,200
(93,000)
2,111
127,263
(349,910)
(169,983)
1
(452,868)
(96,492)
(500)
60,666
(10)
172
(1,038,814)
5,583
21,791,044
5,202,119
—
¥ 26,993,164
(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
—
(311)
21
(3,401)
(1,652)
0
(4,402)
(938)
(5)
590
(0)
2
(10,097)
54
211,810
50,565
—
$ 262,375
79
SMFGConsolidated Statements of Cash FlowsSMFG 2014 Notes to Consolidated Financial Statements
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Years ended March 31, 2014 and 2013
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 prevailing exchange rate at March 31, 2014, which was ¥102.88
to US$1. These translations should not be construed as representa-
tions 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
324 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
80
Cedyna Financial Corporation
SMBC Consumer Finance Co., Ltd.
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, 2014 are as follows:
35 companies including SMBC Trust Bank Ltd. were
newly included in the scope of consolidation as a result
of the acquisition of stocks and for other reasons. 13
companies including Chelsea Capital Corporation were
also newly consolidated in accordance with the revision
to the Accounting Standard for Consolidated Financial
Statements effective March 25, 2011 (ASBJ Statement No.
22) and related rules, which are applied from fiscal years
beginning on or after April 1, 2013.
28 companies including PROCENT Inc. were excluded
from the scope of consolidation because they ceased to be
SMFG’s subsidiaries due to mergers and for other reasons.
19 companies including Ivory Leasing 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 the lease business.
(ii) Unconsolidated subsidiaries
Principal company:
SBCS Co., Ltd.
195 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 Ordinance on Terminology, Forms
and Preparation Methods of Consolidated Financial
Statements.
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.
SMFGSMFG 2014 (ii) Equity method affiliates
41 companies
Principal companies:
PT Bank Tabungan Pensiunan Nasional Tbk
Sumitomo Mitsui Auto Service Company, Limited
Daiwa SB Investments Ltd.
Changes in the equity method affiliates in the fiscal year
ended March 31, 2014 are as follows:
7 companies including PT Bank Tabungan Pensiunan
Nasional Tbk newly became equity method affiliates due
to the acquisition of stocks and for other reasons.
Mobit Co., Ltd. was excluded from the scope of affiliates
accounted for by the equity method, because it became a
subsidiary as a result of an increase in the ratio of voting
rights. 4 companies including Shimizu Sogo Lease Co.,
Ltd. were also excluded from the scope because they
ceased to be SMFG’s affiliates due to mergers and for other
reasons.
Toyota Asset Management Co., Ltd. became an equity
method affiliate on April 1, 2013 through the acquisition
of stocks. However, since it merged with Sumitomo Mitsui
Asset Management Company, Limited on the same day, it
was excluded from the scope of affiliates.
(iii) Unconsolidated subsidiaries that are not accounted for
by the equity method
195 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 Ordinance on Terminology,
Forms and Preparation Methods of Consolidated Financial
Statements.
(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.
(c) The balance sheet dates of consolidated subsidiaries
(i) The balance sheet dates of the consolidated subsidiaries
are as follows:
5 companies
June 30 .................................................
3 companies
October 31 ............................................
November 30 ........................................
3 companies
December 31 ......................................... 130 companies
25 companies
January 31 .............................................
February 28 ...........................................
4 companies
March 31 ............................................... 154 companies
(ii) The subsidiaries with balance sheets dated June 30 are
consolidated using the financial statements as of December
31 or 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. The subsidiaries with balance sheets dated November
30 are consolidated using the financial statements as of
March 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.
(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
sheets on a trade date basis. Profits and losses on trading-
purpose transactions are recognized on a trade date basis
and recorded as “Trading income” or “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 (based on 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 those classified for
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).
Other securities for which it is extremely difficult to
determine fair value 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
81
SMFGNotes to Consolidated Financial StatementsSMFG 2014 applying fair value hedge accounting.
(b) Securities included in money held in trust are carried in 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.
(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, assuming that lease terms are, in principle, their
depreciation period and salvage value is the estimated
disposal value when the lease period expires.
(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 zero.
(6) Reserve for possible loan losses
The reserve for possible loan losses of major consolidated
subsidiaries is provided for as described 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 clas-
sified as “Past due loans (3 months or more)” or “Restructured
loans,” whose total loans from SMBC exceed a 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
uncollectible 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 outstand-
ing amount of the claims. The amounts of write-off were
¥511,043 million ($4,967 million) and ¥653,146 million for
the years ended March 31, 2014 and 2013, 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 directors, corporate auditors and other executive
officers, in the amount of estimated bonuses, which are
attributable to the respective fiscal year.
(9) 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.
(10) 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.
(11) Reserve for reimbursement of deposits
The reserve for reimbursement of deposits which were
derecognized from liabilities under certain conditions is pro-
vided for the possible losses on the future claims of withdrawal
based on historical reimbursements.
(12) 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.
82
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(13) Reserve under the special laws
The reserve under the special laws is a reserve for contingent
liabilities and provided for compensation for losses from securi-
ties related transactions or derivative transactions, pursuant to
Article 46-5 of the Financial Instruments and Exchange Act.
(14) Employee retirement benefits
In calculating the projected benefit obligation, the straight-
line basis is used to attribute the expected benefit to each
service period.
Unrecognized prior service cost is amortized on a straight-
line basis, primarily over 9 years within the employees’
average remaining service period at incurrence.
Unrecognized net actuarial gain (loss) is amortized on a
straight-line basis, primarily over 9 years within the employ-
ees’ average remaining service period, commencing from the
next fiscal year of incurrence.
(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.
(b) Recognition of income on operating leases
Primarily, lease-related income is recognized on a
straight-line basis over the 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 expenses are
recognized on a due-date basis over the contract period for
collection from 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
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, 2014
and 2013 were ¥40 million ($0 million) and ¥70 million,
respectively. Gross amounts of deferred hedge gains on
“macro hedge” (before deducting tax effect) at March 31,
2014 and 2013 were ¥14 million ($0 million) and ¥17
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
83
SMFGNotes to Consolidated Financial StatementsSMFG 2014
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 non-arbitrary 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 consolidated subsidiaries apply the deferred
hedge accounting, the fair value hedge accounting or the
special treatment for interest rate swaps.
(18) Amortization of goodwill
Goodwill is amortized using the straight-line method over
a period in which its benefit is expected to be realized, not
to exceed 20 years. Immaterial goodwill is expensed 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) Changes in accounting policies
(a) Revision of the Accounting Standard for Consolidated
Financial Statements and related rules
(Changes in accounting policies due to application of new
or revised accounting standards)
SMFG has adopted the Accounting Standard for
Consolidated Financial Statements (ASBJ Statement
No. 22, revised on March 25, 2011, the “Accounting
Standard”) applicable from fiscal years commencing on or
after April 1, 2013. Accordingly, 13 companies including
Chelsea Capital Corporation were newly included in the
scope of consolidation since the beginning of the fiscal year
ended March 31, 2014.
In accordance with the transitional treatment stipulated
in Paragraph 44-4 (3) of the Accounting Standard, assets,
liabilities and minority interests of those newly consoli-
dated subsidiaries are valued by the appropriate book
values reported in the consolidated financial statements at
the beginning of the period.
As a result, retained earnings at the beginning of this
fiscal year decreased by ¥168 million ($2 million).
(b) Accounting Standard for Retirement Benefits and related
guidance
(Changes in accounting policies due to application of new
or revised accounting standards)
SMFG has adopted the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, issued
on May 17, 2012, the “Accounting Standard”) and the
Guidance on Accounting Standard for Retirement Benefits
(ASBJ Guidance No. 25, the “Guidance”) applicable
from the fiscal year ended March 31, 2014 (excluding
the provisions set out in the main text of Paragraph 35
and Paragraph 67 of the Accounting Standard and the
Guidance, respectively). Accordingly, the difference
between the projected benefit obligation and plan assets is
reported as Net defined benefit asset or Net defined benefit
liability from the fiscal year ended March 31, 2014.
In accordance with the transitional treatment
stipulated in Paragraph 37 of the Accounting Standard,
unrecognized net actuarial gain or loss and unrecognized
prior service cost, after adjusting tax effect, are reported as
Remeasurements of defined benefit plans in Accumulated
other comprehensive income from the fiscal year ended
March 31, 2014.
As a result, ¥119,932 million ($1,166 million) and
¥45,385 million ($441 million) were recorded as Net
defined benefit asset and Net defined benefit liability,
respectively. Accumulated other comprehensive income
decreased by ¥73,579 million ($715 million).
The effect of this change on net assets per share is
disclosed in Note 35. Per share data.
(22) Unapplied Accounting Standards
(a) Accounting Standard for Retirement Benefits (ASBJ
Statement No. 26, issued on May 17, 2012) and related
guidance
(i) Outline
The accounting standard has been revised in light of
improving financial reporting and the trend toward
international convergence, mainly on i) changes in account-
ing methods for unrecognized net actuarial gains or losses
and unrecognized prior service cost, ii) enhancement of
disclosure items, and iii) changes in calculation methods
for projected benefit obligation and service cost.
(ii) Date of application
SMFG intends to adopt iii) from the fiscal year beginning
on April 1, 2014. The method for attributing the expected
benefit to periods of service will be primarily changed from
the straight-line basis to the benefit formula basis.
(iii) Effects of adoption of the revised accounting standard
Effects of adoption of the accounting standard are currently
being examined.
(b) Revision of Accounting Standard for Business
Combinations (ASBJ Statement No. 21, revised on
September 13, 2013) and related rules
(i) Outline
The accounting standard has been revised mainly on i) the
treatment of a change in the parent company’s ownership
interest in a subsidiary in the case where the parent com-
pany continues to control the subsidiary upon additionally
acquiring the shares of the subsidiary or other cases, ii) the
treatment of acquisition cost, iii) the treatment of the tran-
sitional accounting, and iv) the presentation of net income
and the change in presentation from minority interests to
non-controlling interests.
(ii) Date of application
SMFG intends to adopt i) to iii) from the fiscal year
beginning on April 1, 2014, and iv) from the fiscal year
beginning on April 1, 2015.
(iii) Effects of adoption of the revised accounting standard
Effects of adoption of the revised accounting standard are
not yet determined.
84
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(23) Additional information
Effect of a change in the corporate income tax rate
In accordance with the Act for Partial Revision of the Income
Tax Act, etc. (2014 Act No. 10) promulgated on March 31,
2014, the special corporate tax for reconstruction will be
abolished from fiscal years beginning on or after April 1,
2014. As a result, net income decreased by ¥10,797 million
($105 million).
3. Trading Assets
Trading assets at March 31, 2014 and 2013 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
2014
¥3,350,242
6,462
6,086
3,477,646
116,981
¥6,957,419
2013
¥3,220,858
3,614
26,044
4,327,085
187,952
¥7,765,554
Millions of
U.S. dollars
2014
$32,565
63
59
33,803
1,137
$67,627
4. Securities
Securities at March 31, 2014 and 2013 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
2014
$138,437
2,208
28,735
32,968
61,580
$263,927
*1 Unsecured loaned securities for which borrowers have the right to sell or pledge in the amount of ¥28,995 million ($282 million) and ¥50,716 million are included in Japanese
2014
¥14,242,395
227,128
2,956,229
3,391,701
6,335,326
¥27,152,781
2013
¥26,994,438
355,883
3,015,019
3,035,072
7,906,318
¥41,306,731
Millions of yen
government bonds and other trading assets at March 31, 2014 and 2013, 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,
¥1,462,265 million ($14,213 million) are pledged, and ¥2,482,406 million ($24,129 million) are held in hand at March 31, 2014. The respective amounts at March 31, 2013 were
¥1,238,199 million and ¥821,378 million.
*2 Japanese corporate bonds include privately-placed bonds (stipulated by Article 2-3 of the Financial Instruments and Exchange Act) which are guaranteed by banking subsidiaries in
the amount of ¥1,885,300 million ($18,325 million) and ¥1,823,931 million at March 31, 2014 and 2013, respectively.
*3 Japanese stocks and other include investments in unconsolidated subsidiaries and affiliates of ¥372,377 million ($3,619 million) and ¥257,871 million at March 31, 2014 and 2013,
respectively.
*4 Japanese stocks and other include investments in jointly controlled entities of ¥99,691 million ($969 million) and ¥125,057 million at March 31, 2014 and 2013, respectively.
5. Loans and Bills Discounted
(1) Loans and bills discounted at March 31, 2014 and 2013 consisted of the following:
March 31
Bills discounted ...............................................................................................
Loans on notes .................................................................................................
Loans on deeds .................................................................................................
Overdrafts .......................................................................................................
Millions of yen
2014
¥ 180,549
2,151,154
60,430,958
5,465,025
¥68,227,688
2013
¥ 199,057
2,163,861
56,620,452
6,648,720
¥65,632,091
(2) Loans and bills discounted included the following “Risk-monitored loans” stipulated in the Banking Act:
March 31
Bankrupt loans*1 .............................................................................................
Non-accrual loans*2 .........................................................................................
Past due loans (3 months or more)*3 ................................................................
Restructured loans*4 ........................................................................................
Millions of yen
2014
¥ 39,601
877,325
14,679
389,089
¥1,320,695
2013
¥ 55,479
1,130,562
16,044
484,963
¥1,687,049
Millions of
U.S. dollars
2014
$ 1,755
20,909
587,393
53,120
$663,177
Millions of
U.S. dollars
2014
$ 385
8,528
143
3,782
$12,837
85
SMFGNotes to Consolidated Financial StatementsSMFG 2014 *1 “Bankrupt loans” are loans, after write-off, to legally bankrupt borrowers as defined in Articles 96-1-3 and 96-1-4 of “Order for Enforcement of the Corporation Tax Act” (Cabinet
Order No. 97 of 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 pay-
ments, 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 without restrictions bank acceptance bought, commercial bills discounted, documen-
tary bills and foreign exchanges bought, etc. The total face value at March 31, 2014 and 2013 was ¥1,019,215 million ($9,907 million)
and ¥887,690 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, 2014 and 2013 were
¥49,167,754 million ($477,914 million) and ¥49,706,886 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, 2014 and 2013 were ¥38,010,372 million
($369,463 million) and ¥40,403,061 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, 2014 and 2013 consisted of the following:
March 31
Prepaid expenses ..................................................................................................
Accrued income ...................................................................................................
Deferred assets .....................................................................................................
Financial derivatives* ..........................................................................................
Other ..................................................................................................................
* Referred to in Note 29
7. Tangible Fixed Assets
Tangible fixed assets at March 31, 2014 and 2013 consisted of the following:
Millions of yen
2014
¥ 44,627
313,866
919,230
681,783
2,222,004
¥4,181,512
2013
¥ 38,273
290,923
819,984
785,820
2,432,633
¥4,367,634
Millions of yen
March 31
Assets for rent ......................................................................................................
Buildings ............................................................................................................
Land* ...................................................................................................................
Lease assets ..........................................................................................................
Construction in progress ......................................................................................
Other tangible fixed assets ...................................................................................
Total ....................................................................................................................
Accumulated depreciation ...................................................................................
* Includes land revaluation excess referred to in Note 15.
2014
¥1,436,703
302,220
445,043
8,529
55,920
98,369
¥2,346,788
¥ 884,257
2013
¥1,102,755
298,620
455,420
9,065
20,123
97,786
¥1,983,772
¥ 857,513
Millions of
U.S. dollars
2014
$ 434
3,051
8,935
6,627
21,598
$40,645
Millions of
U.S. dollars
2014
$13,965
2,938
4,326
83
544
956
$22,811
$ 8,595
86
SMFGNotes to Consolidated Financial StatementsSMFG 2014 8. Intangible Fixed Assets
Intangible fixed assets at March 31, 2014 and 2013 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, 2014 and 2013 consisted of the following:
March 31
Assets pledged as collateral:
Millions of yen
2014
¥328,251
377,145
80
114,418
¥819,895
2013
¥296,770
385,625
104
108,359
¥790,860
Millions of yen
2014
2013
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 .............................................................................
¥ 98,101
347,681
76,437
2,245,525
7,431,341
2,278,931
4,036
10,411
276
29,933
745,000
1,664,002
5,317,793
350,379
3,561,623
35,014
187,730
¥ 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
Millions of
U.S. dollars
2014
$3,191
3,666
1
1,112
$7,969
Millions of
U.S. dollars
2014
$ 954
3,379
743
21,827
72,233
22,151
39
101
3
291
7,241
16,174
51,689
3,406
34,619
340
1,825
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, 2014 and 2013:
March 31
Cash and due from banks and Deposits with banks ..............................................
Trading assets ......................................................................................................
Securities .............................................................................................................
Loans and bills discounted ...................................................................................
2014
¥ 11,658
21,939
8,018,590
—
2013
¥ 17,766
28,128
24,871,082
735,230
Millions of yen
Millions of
U.S. dollars
2014
$ 113
213
77,941
—
Moreover, other assets included surety deposits, margins of futures market transactions, cash collateral paid for financial instruments, and
other margins, etc. The amount of at March 31, 2014 and 2013 is as follows.
March 31
Surety deposits ....................................................................................................
Margins of futures market transactions ................................................................
Cash collateral paid for financial instruments .......................................................
Other margins .....................................................................................................
2014
¥121,613
22,677
152,163
1,362
2013
¥120,705
17,507
255,863
2,414
Millions of yen
Millions of
U.S. dollars
2014
$1,182
220
1,479
13
87
SMFGNotes to Consolidated Financial StatementsSMFG 2014
10. Deposits
Deposits at March 31, 2014 and 2013 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, 2014 and 2013 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
2014
¥ 8,641,851
45,172,830
728,432
7,370,774
27,324,639
13,713,539
5,093,395
¥108,045,465
2013
¥ 8,232,048
42,424,870
704,081
6,106,278
27,687,948
11,755,654
3,926,583
¥100,837,465
Millions of yen
2014
¥1,865,242
7,547
7,578
2,899,601
¥4,779,969
2013
¥1,910,129
11,727
29,396
4,168,379
¥6,119,631
Millions of
U.S. dollars
2014
$ 83,999
439,083
7,080
71,644
265,597
133,296
49,508
$1,050,209
Millions of
U.S. dollars
2014
$18,130
73
74
28,184
$46,462
12. Borrowed Money
Borrowed money at March 31, 2014 and 2013 consisted of the following:
March 31
Borrowed money*2 ...................................................... ¥7,020,841
2014
2013
¥4,979,460
Millions of yen
Millions of
U.S. dollars
2014
$68,243
Average
interest rate*1
2014
0.48%
Due
Jan. 2014–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 ¥282,449 million ($2,745 million) and ¥314,450 million at March 31, 2014 and 2013, respectively.
The repayment schedule over the next 5 years on borrowed money at March 31, 2014 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
2014
¥4,825,675
464,890
278,299
133,272
171,338
Millions of U.S. dollars
2014
$46,906
4,519
2,705
1,295
1,665
88
SMFGNotes to Consolidated Financial StatementsSMFG 2014
13. Bonds
Bonds at March 31, 2014 and 2013 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 Euro ...............................
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 Renminbi .....................
Subordinated bonds, payable in Yen ......................
Short-term bonds, payable in Yen ..........................
Millions of yen*1
2014
2013
Millions of
U.S. dollars
2014
Interest rate*2
(%)
2014
Due
¥ 25,000
[25,000]
926,808
[226,396]
12,900
1,618,005
($15,727,110 thousand)
[144,015]
42,805
(£250,000 thousand)
175,822
(€1,242,032 thousand)
139,961
(A$1,469,873 thousand)
[40,942]
1,094,793
[49,997]
130,800
187,407
($1,821,609 thousand)
152,231
(€1,075,384 thousand)
¥ 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)
458,299
[51,250]
14,931
(RMB¥900,000 thousand)
[4,977]
136,200
1,120,200
[1,120,200]
¥6,236,094
349,386
[58,950]
16,665
(RMB¥1,100,000 thousand)
[3,030]
142,200
1,106,300
[1,106,300]
¥5,877,106
$ 243
0.07
Apr. 2014
9,009
0.06929-1.26
Apr. 2014–Apr. 2018
125
15,727
0.06893-3.4
0.6704-3.95
Mar. 2036–Feb. 2037
Jul. 2014–Jan. 2024
416
1,709
1,360
1.07
Mar. 2016
2.25-2.75
Dec. 2020–Jul. 2023
3.29-4.28
Dec. 2014–Mar. 2019
10,641
0.87-2.8
Oct. 2014–Dec. 2026
0.80786-2.97
4.85-5.625
May 2019–Jun. 2035
Mar. 2022–Perpetual
4-4.375
Nov. 2020–Perpetual
0.1-17
Apr. 2014–Mar. 2044
3-4
Sep. 2014–Aug. 2015
2.19-4.5
0.085-0.2
Feb. 2020–Perpetual
Apr. 2014–Nov. 2014
1,271
1,822
1,480
4,454
145
1,324
10,888
$60,615
*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, 2014 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
2014
¥1,662,803
913,557
823,193
425,984
311,378
Millions of U.S. dollars
2014
$16,163
8,880
8,001
4,141
3,027
89
SMFGNotes to Consolidated Financial StatementsSMFG 2014 14. Other Liabilities
Other liabilities at March 31, 2014 and 2013 consisted of the following:
March 31
Accrued expenses .................................................................................................
Unearned income .................................................................................................
Income taxes payable ...........................................................................................
Financial derivatives*1 .........................................................................................
Lease liabilities*2 .................................................................................................
Other ..................................................................................................................
Millions of yen
2014
¥ 153,753
155,699
94,584
1,294,664
93,622
2,919,744
¥4,712,069
2013
¥ 155,892
148,938
206,968
932,404
97,954
2,447,635
¥3,989,794
Millions of
U.S. dollars
2014
$ 1,494
1,513
919
12,584
910
28,380
$45,802
*1 Referred to in Note 31
*2 Average interest rate on lease liabilities for the year ended March 31, 2014 was 4.60%. 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, 2014 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
2014
¥18,597
16,245
12,587
10,803
9,692
Millions of U.S. dollars
2014
$181
158
122
105
94
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, 2014 and 2013 were as follows:
Number of shares
2014
2013
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 ........................................................................................................ 3,000,564,000 1,414,055,625
167,000
—
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
90
SMFGNotes to Consolidated Financial StatementsSMFG 2014
17. Fees and Commissions
Fees and commissions for the fiscal years ended March 31, 2014 and 2013 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
2014
2013
¥ 116,893
131,239
150,000
17,968
5,833
76,687
236,230
159,425
218,150
¥1,112,429
¥ 36,698
91,141
¥ 127,840
¥ 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
18. Trading Income
Trading income for the fiscal years ended March 31, 2014 and 2013 consisted of the following:
Year ended March 31
Trading income:
Gains on trading securities ...............................................................................
Gains on securities related to trading transactions ............................................
Gains on trading-related financial derivatives ..................................................
Other ...............................................................................................................
Trading losses:
Losses on trading-related financial derivatives ..................................................
Millions of yen
2014
2013
¥161,901
20,277
29,491
210
¥211,881
¥ —
¥ —
¥202,087
4,286
—
367
¥206,741
¥ 40,124
¥ 40,124
19. Other Operating Income
Other operating income for the fiscal years ended March 31, 2014 and 2013 consisted of the following:
Year ended March 31
Gains on sale of bonds .........................................................................................
Gains on redemption of bonds .............................................................................
Lease-related income ............................................................................................
Gains on financial derivatives ..............................................................................
Gains on foreign exchange transactions ................................................................
Other ..................................................................................................................
Millions of yen
2014
¥ 41,594
121
950,375
1,912
103,272
106,223
¥1,203,500
2013
¥ 161,423
114
879,822
—
125,348
117,068
¥1,283,776
Millions of
U.S. dollars
2014
$ 1,136
1,276
1,458
175
57
745
2,296
1,550
2,120
$10,813
$ 357
886
$ 1,243
Millions of
U.S. dollars
2014
$1,574
197
287
2
$2,059
$ —
$ —
Millions of
U.S. dollars
2014
$ 404
1
9,238
19
1,004
1,032
$11,698
91
SMFGNotes to Consolidated Financial StatementsSMFG 2014 20. Other Operating Expenses
Other operating expenses for the fiscal years ended March 31, 2014 and 2013 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
2014
¥ 25,734
13,427
162
3,756
826,116
—
119,183
¥988,380
2013
¥ 34,825
6,614
12
3,235
781,211
6,040
128,239
¥960,179
21. Other Income
Other income for the fiscal years ended March 31, 2014 and 2013 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
2014
¥108,183
79
10,241
2,632
9,657
1,564
43,235
¥175,595
2013
¥38,412
71
5,309
240
10,436
140
32,168
¥86,780
22. Other Expenses
Other expenses for the fiscal years ended March 31, 2014 and 2013 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 .........................................................................
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
2014
¥ 84,933
8,721
10,218
10
9,127
11,227
3,348
89,813
¥217,402
2013
¥133,639
29,440
29,944
1,659
10,532
5,721
4,314
67,614
¥282,867
Millions of
U.S. dollars
2014
$ 250
131
2
37
8,030
—
1,158
$9,607
Millions of
U.S. dollars
2014
$1,052
1
100
26
94
15
420
$1,707
Millions of
U.S. dollars
2014
$ 826
85
99
0
89
109
33
873
$2,113
Year ended
March 31
Tokyo metropolitan area ........................................ Corporate assets (3 items) Land and buildings, etc.
Type
Area
Purpose of use
2014
Idle assets (38 items)
Other (1 item)
Kinki area ............................................................. Branches (—)
Land and buildings, etc.
Other .................................................................... Corporate assets (1 item) Land and buildings, etc.
Idle assets (37 items)
Other (—)
Idle assets (10 items)
Other (1 item)
92
Millions of yen
2014
¥ 146
1,836
23
—
965
—
37
232
107
2013
¥ —
2,523
55
206
1,169
22
—
274
62
Millions of
U.S. dollars
2014
$ 1
18
0
—
9
—
0
2
1
SMFGNotes to Consolidated Financial StatementsSMFG 2014 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, corporate assets 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.
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
2014
2013
¥518,567
(223,029)
295,537
(93,971)
201,566
(59,541)
17,840
(1,332)
(43,032)
15,559
(27,473)
—
—
—
18
18
170,926
(863)
170,062
—
170,062
(1,349)
(3,418)
(4,768)
—
(4,768)
¥339,405
¥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
Millions of
U.S. dollars
2014
$5,041
(2,168)
2,873
(913)
1,959
(579)
173
(13)
(418)
151
(267)
—
—
—
0
0
1,661
(8)
1,653
—
1,653
(13)
(33)
(46)
—
(46)
$3,299
93
SMFGNotes to Consolidated Financial StatementsSMFG 2014 24. Changes in Net Assets
(1) Type and number of shares issued and treasury stock
Year ended March 31, 2014
Shares issued
At the beginning
of the fiscal year
Increase
Decrease
At the end of the
fiscal year
Number of shares
Common stock ................................................... 1,414,055,625
Total .............................................................. 1,414,055,625
—
—
—
—
1,414,055,625
1,414,055,625
Treasury stock
Common stock ...................................................
Total ..............................................................
60,179,376
60,179,376
105,441*1
105,441
13,503,148*2
13,503,148
46,781,669
46,781,669
*1 Increase of 105,441 shares in the number of treasury common stock was due to the purchase of fractional shares.
*2 Decrease of 13,503,148 shares in the number of treasury common stock was due to reduction of 5,108 shares through the sale of fractional shares and exercise of stock
options, and reduction of 13,498,040 shares through the sale of SMFG shares held by SMBC and other subsidiaries.
Year ended March 31, 2013
Shares issued
At the beginning
of the fiscal year
Increase
Decrease
At the end of the
fiscal year
Number of shares
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.
(2) Information on stock acquisition rights
Year ended March 31, 2014
SMFG ..............................
Consolidated subsidiaries ...
Total ................................
Detail of stock
acquisition rights
Stock options
—
Type of
shares
—
—
At the
beginning of
the fiscal year
—
—
Detail of stock
acquisition rights
Stock options
—
Type of
shares
—
—
At the
beginning of
the fiscal year
—
—
Year ended March 31, 2013
SMFG ..............................
Consolidated subsidiaries ...
Total ................................
(3) Information on dividends
(a) Dividends paid in the fiscal year ended March 31, 2013
Type of shares
Common stock *1 ..................................................
Common stock *2 ..................................................
Cash dividends
¥68,230
70,513
*1 Date of resolution: Ordinary general meeting of shareholders held on June 28, 2012
*2 Date of resolution: Meeting of the Board of Directors held on November 14, 2012
94
Number of shares
Increase
—
—
Decrease
—
—
Number of shares
Increase
—
—
Decrease
—
—
At the
end of the
fiscal year
—
—
At the
end of the
fiscal year
—
—
Millions of
yen
At the
end of the
fiscal year
¥1,634
157
¥1,791
Millions of
U.S. dollars
At the
end of the
fiscal year
$16
2
$17
Millions of yen
At the
end of the
fiscal year
¥1,140
120
¥1,260
Millions of yen, except per share amount
Cash dividends
per share
¥50
50
Record date
March 31, 2012
Effective date
June 28, 2012
September 30, 2012 December 4, 2012
SMFGNotes to Consolidated Financial StatementsSMFG 2014 (b) Dividends paid in the fiscal year ended March 31, 2014
Type of shares
Common stock *1 ..................................................
Common stock *2 ..................................................
Cash dividends
¥98,713
77,556
Millions of yen, except per share amount
Cash dividends
per share*3
¥70
55
Record date
March 31, 2013
Effective date
June 27, 2013
September 30, 2013 December 3, 2013
*1 Date of resolution: Ordinary general meeting of shareholders held on June 27, 2013
*2 Date of resolution: Meeting of the Board of Directors held on November 12, 2013
*3 Cash dividends per share of ¥70 resolved at the ordinary general meeting of shareholders held on June 27, 2013 includes ¥10 of the commemorative dividend.
(c) Dividends to be paid in the fiscal year ending March 31, 2015
Type of shares
Common stock* ....................................................
Cash dividends
¥91,656
* Date of resolution: Ordinary general meeting of shareholders held on June 27, 2014
Millions of yen, except per share amount
Source
of dividends
Retained earnings
Cash dividends
per share
¥65
Record date
Effective date
March 31, 2014 June 27, 2014
25. 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
26. Lease Transactions
(1) Financing leases
(a) Lessee side
(i) Lease assets
Tangible fixed assets mainly consisted of branches 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 .....................................................................................................
2014
¥1,174,517
102,853
(169,452)
¥1,107,918
2013
¥1,123,573
88,530
(164,413)
¥1,047,691
Millions of yen
Millions of
U.S. dollars
2014
$11,416
1,000
(1,647)
$10,769
95
SMFGNotes to Consolidated Financial StatementsSMFG 2014 (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 .....................................................................................................
2014
¥266,118
191,627
129,777
66,044
46,480
123,437
¥823,487
2013
¥244,425
153,383
101,441
73,707
37,667
111,437
¥722,062
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 .....................................................................................................
2014
¥ 332,508
264,101
194,146
134,726
86,255
162,778
¥1,174,517
2013
¥ 355,846
246,504
186,131
127,014
73,846
134,230
¥1,123,573
Millions of
U.S. dollars
2014
$2,587
1,863
1,261
642
452
1,200
$8,004
Millions of
U.S. dollars
2014
$ 3,232
2,567
1,887
1,310
838
1,582
$11,416
(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, 2014 and 2013 were ¥2,988 million ($29 million)
and ¥5,940 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, 2014 and 2013 were as follows:
March 31
Due within 1 year .................................................................................
Due after 1 year ....................................................................................
Total .....................................................................................................
2014
¥ 43,498
265,182
¥308,681
2013
¥ 45,180
286,516
¥331,697
Millions of yen
Millions of
U.S. dollars
2014
$ 423
2,578
$3,000
(b) Lessor side
Future minimum lease payments on operating leases which were not cancelable at March 31, 2014 and 2013 were as follows:
March 31
Due within 1 year .................................................................................
Due after 1 year ....................................................................................
Total .....................................................................................................
2014
¥140,569
790,238
¥930,807
2013
¥113,679
467,799
¥581,478
Millions of yen
Millions of
U.S. dollars
2014
$1,366
7,681
$9,048
Future lease payments receivable on operating leases which were not cancelable at March 31, 2014 and 2013 amounting to ¥0
million ($0 million) and ¥0 million, respectively, on the lessor side were pledged as collateral for borrowings.
96
SMFGNotes to Consolidated Financial StatementsSMFG 2014 27. Financial Instruments
(1) Status of financial instruments
(a) Policies on financial instruments
SMFG 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
trading and investment, remittance and transfer, 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 consoli-
dated subsidiary, derivative transactions for ALM purposes
are undertaken by the Treasury Dept. and the International
Treasury Dept. of the Treasury Unit, while derivative
transactions for trading purposes are undertaken by the
Trading Dept. 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 “Regulations on Risk Management.”
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 Dept., which, together with
the Corporate Planning Dept., controls risk management
across SMFG by monitoring the development and imple-
mentation of SMFG’s risk management system, and gives
appropriate guidance as needed. Under this 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 Dept. of the Risk
Management Unit is responsible for the comprehensive
management of credit risk. This department estab-
lishes, 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. calculating risk capital
and risk-weighted assets) in cooperation with the
Corporate Risk Management Dept. The department
also monitors risk situations and regularly reports
97
SMFGNotes to Consolidated Financial StatementsSMFG 2014 to the Management Committee and the Board of
Directors.
Moreover, the Credit Portfolio Management Dept.
within the Credit & Investment Planning Dept. works
to stabilize SMBC’s overall credit portfolio through
using credit derivatives and selling loan claims.
In the Corporate Services Unit, the Credit
Administration Dept. is responsible for formulating
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 busi-
ness units play a central role in credit screening and
managing their units’ credit portfolios. Each business
unit establishes its credit limits based on the baseline
amounts for each borrower grading category. Borrowers
or loans perceived to have high credit risk undergo
intensive evaluation and administration by the unit’s
Credit Department. The Corporate Research Dept.
analyzes industries as well as investigates the borrower’s
business situation to detect early signs of problems.
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 SMBC’s loan operations.
In addition to these, the Internal Audit Unit,
operating independently from the business units,
audits asset quality, grading accuracy, self-assessment,
and appropriateness of the 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. Based on this limit,
guidelines are set for each business unit. Regular
monitoring is conducted to ensure that these guidelines
are being followed.
— Controlling concentration of 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 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
For non-performing loans and potential non-
performing loans, SMBC carries out loan reviews to
clarify credit 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.
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 these instruments involving detailed analysis
and evaluation 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 to appropriately manage risks of incurring losses.
In regards to credit risk of derivative transactions,
the potential exposure based on the market price is
regularly calculated and property 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
Dept., which is independent from the business units
98
SMFGNotes to Consolidated Financial StatementsSMFG 2014
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 that
may be incurred to a specific financial instrument for
a given probability) within the market risk capital
limit, which is set taking into account stockholders’
equity and other factors 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
fluctuations scenarios based on historical data) to
measure VaR. Regarding banking activities (activities
for generating profit through management of interest
rates, terms, and other aspects of assets such as loans
and bonds and liabilities such as deposits) and trading
activities (activities 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 1 day with a probability of
1% based on 4 years of historical observation. With
regard to the holding of shares (such as listed shares) for
the purpose of strategic investment, SMBC calculates
the maximum loss that may occur as a result of market
fluctuations in 1 year with a probability of 1% based
on 10 years of historical observation.
Regarding risks associated with foreign exchange
rates, interest rates, share price, 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, 2014, total VaR of SMBC and other
major consolidated subsidiaries was ¥41.5 billion ($0.4
billion) for the banking activities, ¥9.5 billion ($0.1
billion) for the trading activities, and ¥1,142.2 billion
($11.1 billion) for the holding of shares (such as listed
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,
maintaining a system of highly liquid supplementary
funding sources, and establishing contingency plans.
A funding gap is the amount of funds needed in the
future to cover duration mismatch between required
investments and funding resources. SMBC tries
to avoid excessive reliance on short-term funds by
managing funding gap limits and has established a
contingency plan covering emergency action plans such
as reducing the allowable funding gap limits. In addi-
tion, 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
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, on reasonably calculated prices. These prices have
been calculated using certain assumptions, and may differ
if calculated based on different assumptions.
99
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(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,
2014 and 2013 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
¥ 32,980,901
1,247,326
522,860
3,780,260
3,545,953
3,467,223
23,120
4,528,549
21,656,818
68,227,688
(538,691)
67,688,996
1,786,063
1,816,624
¥143,044,698
¥ 94,331,925
13,713,539
4,112,428
1,710,101
5,330,974
2,374,051
1,865,242
7,020,841
451,658
1,145,200
5,090,894
699,329
¥137,846,188
Millions of yen
2014
Fair value
¥ 32,988,091
1,248,436
528,406
3,780,887
3,559,390
3,467,223
23,120
4,562,347
21,656,818
69,440,340
1,790,855
1,893,207
¥144,939,126
¥ 94,334,169
13,716,899
4,112,428
1,710,101
5,330,974
2,374,049
1,865,242
7,050,354
451,658
1,145,195
5,240,321
699,329
¥138,030,724
Hedge accounting not applied .....................................................
Hedge accounting applied ...........................................................
Total ................................................................................................
¥ 440,101
[477,513]
¥ [37,411]
¥ 440,101
[477,513]
¥ [37,411]
Net unrealized gains
(losses)
¥ 7,189
1,110
5,545
627
13,437
—
—
33,797
—
1,751,343
4,792
76,582
¥1,894,428
¥ 2,244
3,359
(0)
—
—
(2)
—
29,513
—
(4)
149,426
—
¥ 184,536
¥ —
—
¥ —
100
SMFGNotes to Consolidated Financial StatementsSMFG 2014 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
¥ —
—
¥ —
101
SMFGNotes to Consolidated Financial StatementsSMFG 2014 Millions of U.S. dollars
2014
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
$ 320,576
12,124
5,082
36,744
34,467
33,702
225
44,018
210,506
663,177
(5,236)
657,941
17,361
17,658
$1,390,403
$ 916,912
133,296
39,973
16,622
51,817
23,076
18,130
68,243
4,390
11,131
49,484
6,798
$1,339,874
Fair value
$ 320,646
12,135
5,136
36,750
34,597
33,702
225
44,346
210,506
674,964
17,407
18,402
$1,408,817
$ 916,934
133,329
39,973
16,622
51,817
23,076
18,130
68,530
4,390
11,131
50,936
6,798
$1,341,667
Hedge accounting not applied .....................................................
Hedge accounting applied ...........................................................
Total ................................................................................................
$ 4,278
[4,641]
$ [364]
$ 4,278
[4,641]
$ [364]
Net unrealized gains
(losses)
$ 70
11
54
6
131
—
—
329
—
17,023
47
744
$18,414
$ 22
33
(0)
—
—
(0)
—
287
—
(0)
1,452
—
$ 1,794
$ —
—
$ —
*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, 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, for dues from banks without
maturity and overdrafts with no specified repayment dates,
the book values are used as fair value as they are considered
to approximate their fair value.
For short-term transactions with remaining maturity not
exceeding 6 months, in principle, the book values are used
as fair value as they are considered to approximate their fair
value.
The fair value of those with a remaining maturity 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 of a risk-free interest rate and an adjust-
ment). 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 rate and a credit risk
102
SMFGNotes to Consolidated Financial StatementsSMFG 2014 premium.
Regarding claims on bankrupt borrowers, effectively
bankrupt borrowers and potentially bankrupt borrowers,
expected losses on such claims are calculated based on
either the expected recoverable amount from disposal of
collateral or guarantees, or the present value of expected
future cash flows. Since the claims’ balance sheet amounts
minus the expected amount of loan losses approximate
their fair values, such amounts are considered to be their
fair values.
5) Monetary claims bought:
The fair values of monetary claims bought, such as sub-
ordinated trust beneficiary interests related to securitized
housing loans, are based on the assessed value of underlying
housing loans securitized through the trust scheme 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 end 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 as of the
end of the fiscal year.
In light of the “Practical Solution on Measurement of
Fair Value for Financial Assets” (ASBJ Practical Issue Task
Force No. 25), the fair values of floating rate government
bonds are based on the present value of future cash flows
(the government bond yield is used to discount and esti-
mate 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 dis-
counting estimated future cash flows taking into account
the borrower’s internal rating and pledged collateral by
a rate comprising a risk-free interest rate and an adjust-
ment. However, the fair values of bonds, such as private
placement bonds issued by bankrupt borrowers, effectively
bankrupt borrowers and potentially bankrupt borrowers are
based on the bond’s book value after the deduction of the
expected amount of a loss on the bond computed by using
the same method applied to the estimation of a loan loss.
Meanwhile, 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 invest-
ment 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. The fair values
of short-term transactions with remaining maturity not
exceeding 6 months are also based on their book values, as
their book values are considered to approximate their fair
values. The fair values of transactions with a remaining
maturity of more than 6 months are, in principle, based on
the present value of estimated future cash flows calculated
using the rate applied to the same type of deposits that are
newly accepted until the end of the remaining maturity.
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
maturity not exceeding 6 months are based on their book
values, as their book values are considered to approximate
their fair values. For transactions with a remaining
maturity of more than 6 months, their fair values are, in
principle, based on the present value of estimated future
cash flows calculated using the refinancing rate applied to
the same type of instruments for the remaining maturity.
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 as of the end 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.
The fair values of foreign exchange related short-term
borrowings are based on their book values, as their book
values are considered 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 prices calculated based on
the present value of the future cash flows, option valuation
models, etc. The fair values of commodity derivatives
transactions are based on their prices calculated based on
the derivative instrument’s components, including price
and contract term.
103
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(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
2014
2013
Millions of
U.S. dollars
2014
Monetary claims bought without market prices*1 ........................................
¥ 5,168
¥ 5,845
$ 50
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
261,627
333,409
¥600,204
268,535
341,945
¥616,326
2,543
3,241
$5,834
changes in their balance sheets and statements of income.
*4 Unlisted stocks and investments in partnership totaling ¥9,781 million ($95 million) and ¥5,603 million were written-off in the fiscal years ended March 31, 2014 and 2013,
respectively.
(4) Redemption schedule of monetary claims 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 ............................................
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
¥31,693,895
1,189,456
360,564
3,726,510
2,799,998
6,951,602
1,105,218
1,045,000
32,783
27,434
—
5,846,384
3,672,565
45,454
584,032
1,544,332
14,389,526
1,777,457
522,275
¥63,411,286
Millions of yen
2014
After 1 year
through 5 years
¥ 33,586
57,267
162,296
53,750
466,522
11,799,348
3,394,784
3,260,000
69,504
65,280
—
8,404,564
4,740,788
58,074
1,680,106
1,925,594
28,161,118
10,651
972,413
¥41,716,955
After 5 years
through 10 years
¥ 24,359
1,511
—
—
62,526
2,863,479
22,000
20,000
—
1,500
500
2,841,479
1,429,700
5,323
479,465
926,991
10,388,550
—
151,545
¥13,491,972
After 10 years
¥ 841
—
—
—
213,170
544,298
—
—
—
—
—
544,298
30,000
13,688
68,137
432,472
9,118,951
—
42,117
¥9,919,379
104
SMFGNotes to Consolidated Financial StatementsSMFG 2014 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 .............................................................................
March 31
Deposits with banks .....................................................
Call loans and bills bought ...........................................
Receivables under resale agreements .............................
Receivables under securities borrowing transactions .....
Monetary claims bought*1 ............................................
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
Within 1 year
$308,067
11,562
3,505
36,222
27,216
67,570
10,743
10,157
319
267
—
56,827
35,698
442
5,677
15,011
139,867
17,277
5,077
$616,362
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
Millions of U.S. dollars
2014
After 1 year
through 5 years
$ 326
557
1,578
522
4,535
114,690
32,998
31,687
676
635
—
81,693
46,081
564
16,331
18,717
273,728
104
9,452
$405,491
After 5 years
through 10 years
$ 237
15
—
—
608
27,833
214
194
—
15
5
27,619
13,897
52
4,660
9,010
100,977
—
1,473
$131,143
After 10 years
¥ —
—
—
—
200,559
635,641
—
—
—
—
—
635,641
5,000
40
61,081
569,519
8,662,488
—
36,684
¥9,535,374
After 10 years
$ 8
—
—
—
2,072
5,291
—
—
—
—
—
5,291
292
133
662
4,204
88,637
—
409
$96,417
*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 ..........................................................................................
2014
¥ 924
18,145
891,610
2,297
20,595
2013
¥ 69
33,995
1,080,983
2,620
20,513
Millions of yen
Millions of
U.S. dollars
2014
$ 9
176
8,667
22
200
*2 Does not include “Loans and bills discounted” without tenure totaling ¥5,272,610 million ($51,250 million) at March 31, 2014. Does not include “Monetary claims bought” and
“Loans and bills discounted” without tenure totaling ¥8,277 million and ¥6,482,020 million at March 31, 2013, respectively.
105
SMFGNotes to Consolidated Financial StatementsSMFG 2014 (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
¥ 89,294,943
12,969,724
4,112,428
1,710,101
5,330,974
2,374,051
4,825,675
451,658
1,145,200
517,603
699,329
¥123,431,691
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
$ 867,952
126,067
39,973
16,622
51,817
23,076
46,906
4,390
11,131
5,031
6,798
$1,199,764
* Demand deposits are included in “Within 1 year.” Deposits include current deposits.
Millions of yen
2014
After 1 year
through 5 years
¥4,255,371
739,755
—
—
—
—
1,047,801
—
—
2,474,114
—
¥8,517,041
After 5 years
through 10 years
¥ 469,026
3,948
—
—
—
—
795,200
—
—
1,742,962
—
¥3,011,137
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 U.S. dollars
2014
After 1 year
through 5 years
$41,362
7,190
—
—
—
—
10,185
—
—
24,049
—
$82,786
After 5 years
through 10 years
$ 4,559
38
—
—
—
—
7,729
—
—
16,942
—
$29,268
After 10 years
¥ 312,583
111
—
—
—
—
352,164
—
—
359,825
—
¥1,024,684
After 10 years
¥263,230
—
—
—
—
—
336,207
—
—
308,847
—
¥908,285
After 10 years
$3,038
1
—
—
—
—
3,423
—
—
3,498
—
$9,960
106
SMFGNotes to Consolidated Financial StatementsSMFG 2014 28. Securities and Money Held in Trust
(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 (losses) included in the earnings for the fiscal year .............
2014
¥(14,077)
2013
¥36,731
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 ...................................................................................................
¥4,061,397
100,697
86,478
500
¥4,249,072
¥ 269,773
1,883
7,820
8,300
¥ 287,777
¥4,536,849
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
Millions of yen
2014
Fair value
¥4,093,197
101,543
87,781
501
¥4,283,023
¥ 269,649
1,881
7,793
8,300
¥ 287,623
¥4,570,647
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 U.S.
dollars
2014
$(137)
Net unrealized
gains (losses)
¥31,800
845
1,303
1
¥33,950
¥ (124)
(1)
(26)
—
¥ (153)
¥33,797
Net unrealized
gains (losses)
¥56,714
1,899
2,574
3
¥61,191
¥ (37)
(0)
(3)
—
¥ (41)
¥61,150
107
SMFGNotes to Consolidated Financial StatementsSMFG 2014 Millions of U.S. dollars
2014
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 ...................................................................................................
$39,477
979
841
5
$41,301
$ 2,622
18
76
81
$ 2,797
$44,098
(c) Other securities
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 ...................................................................................................
Consolidated balance
sheet amount
¥ 2,578,401
11,619,291
8,875,576
117,529
2,626,184
3,743,438
¥17,941,130
¥ 359,736
1,278,413
1,035,648
7,017
235,747
2,686,803
¥ 4,324,953
¥22,266,083
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 ...................................................................................................
Consolidated balance
sheet amount
¥ 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
Fair value
$39,786
987
853
5
$41,631
$ 2,621
18
76
81
$ 2,796
$44,427
Millions of yen
2014
Acquisition cost
¥ 1,392,250
11,549,452
8,852,077
116,816
2,580,558
3,475,716
¥16,417,419
¥ 414,743
1,282,658
1,036,692
7,045
238,920
2,746,270
¥ 4,443,672
¥20,861,091
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
Net unrealized
gains (losses)
$309
8
13
0
$330
$ (1)
(0)
(0)
—
$ (1)
$329
Net unrealized
gains (losses)
¥1,186,150
69,838
23,499
713
45,625
267,722
¥1,523,711
¥ (55,006)
(4,245)
(1,044)
(27)
(3,173)
(59,466)
¥ (118,718)
¥1,404,992
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
108
SMFGNotes to Consolidated Financial StatementsSMFG 2014 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
2014
Consolidated balance
sheet amount
Acquisition cost
Net unrealized
gains (losses)
$ 25,062
112,940
86,271
1,142
25,527
36,386
$174,389
$ 3,497
12,426
10,067
68
2,291
26,116
$ 42,039
$216,428
$ 13,533
112,261
86,043
1,135
25,083
33,784
$159,578
$ 4,031
12,468
10,077
68
2,322
26,694
$ 43,193
$202,771
$11,529
679
228
7
443
2,602
$14,811
$ (535)
(41)
(10)
(0)
(31)
(578)
$ (1,154)
$13,657
Notes: 1. Net unrealized gains (losses) on other securities shown above include gains of ¥17,031 million ($166 million) for the fiscal year ended March 31, 2014 and ¥29,831
million for the fiscal year ended March 31, 2013 that are recognized in the fiscal year’s earnings by applying fair value hedge accounting.
2. Consolidated balance sheet amounts of other securities whose fair values are extremely difficult to determine are as follows:
March 31
Stocks .........................................................................................................................
Other .........................................................................................................................
Total ...........................................................................................................................
2014
¥247,357
352,847
¥600,204
2013
¥259,145
357,180
¥616,326
Millions of yen
Millions of U.S. dollars
2014
$2,404
3,430
$5,834
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, 2014 and 2013
There are no corresponding transactions.
(e) Consolidated balance sheet amounts of other securities sold during the fiscal year ended March 31, 2014 and 2013
Year ended March 31
Stocks .....................................................................................................
Bonds .....................................................................................................
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other .....................................................................................................
Total .......................................................................................................
Sales amount
¥ 95,368
16,975,280
16,603,340
139,552
232,386
9,561,019
¥26,631,667
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
Millions of yen
2014
Gains on sales
¥ 40,211
14,767
13,195
350
1,220
93,937
¥148,915
Millions of yen
2013
Gains on sales
¥ 19,436
60,772
59,471
542
758
110,118
¥190,326
Losses on sales
¥ (6,797)
(8,338)
(7,591)
(294)
(453)
(19,319)
¥(34,455)
Losses on sales
¥(25,912)
(7,845)
(7,730)
(85)
(29)
(29,874)
¥(63,632)
109
SMFGNotes to Consolidated Financial StatementsSMFG 2014
Year ended March 31
Stocks .....................................................................................................
Bonds .....................................................................................................
Japanese government bonds ................................................................
Japanese local government bonds ........................................................
Japanese corporate bonds ....................................................................
Other .....................................................................................................
Total .......................................................................................................
Sales amount
$ 927
165,001
161,385
1,356
2,259
92,934
$258,861
Millions of U.S. dollars
2014
Gains on sales
$ 391
144
128
3
12
913
$1,447
Losses on sales
$ (66)
(81)
(74)
(3)
(4)
(188)
$(335)
(f) Change of classification of securities
There are no corresponding transactions.
(g) Write-down of securities
Bonds classified as held-to-maturity and other securities (excluding securities whose fair value are extremely difficult to determine)
are considered as impaired if the fair value of the securities declines materially below the acquisition cost and such decline is not con-
sidered 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 losses for the fiscal years ended March 31, 2014 and 2013 were ¥7,250
million ($70 million) and ¥34,340 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 four categories of issuers.
(2) Money held in trust
(a) Money held in trust classified as trading purposes
There are no corresponding transactions.
(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 ....................................................................................
2014
¥23,120
23,120
—
—
—
Note: “Unrealized gains” and “Unrealized losses” are breakdowns of “Net unrealized gains (losses)” respectively.
2013
¥22,789
22,778
10
10
—
Millions of yen
(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 following 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 .....................................................
2014
¥1,388,101
1,388,101
—
404,307
983,793
35,188
902
¥ 949,508
2013
¥1,092,274
1,092,264
10
310,233
782,041
29,086
2,798
¥ 755,753
Millions of
U.S. dollars
2014
$225
225
—
—
—
Millions of
U.S. dollars
2014
$13,492
13,492
—
3,930
9,563
342
9
$ 9,229
Notes: 1. Gains of ¥17,031 million ($166 million) for the fiscal year ended March 31, 2014 and ¥29,831 million for the fiscal year ended March 31, 2013 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 on other securities include foreign currency translation adjustments on foreign currency denominated securities whose fair value is extremely
difficult to determine.
110
SMFGNotes to Consolidated Financial StatementsSMFG 2014
29. 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 notional amount, fair value, valuation gains (losses)
and fair value calculation methodologies by type of derivative 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
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 28,829,810
28,567,999
¥ 13,631,032
13,072,376
¥ (8,873)
8,388
¥ (8,873)
8,388
Interest rate options:
Sold ....................................................................................................
Bought ...............................................................................................
782,288
26,838,675
443,131
14,265,117
(66)
4,243
(66)
4,243
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 ......................................
5,077,154
4,789,752
429,987,250
201,751,044
201,398,583
26,692,561
—
—
351,524,820
167,035,674
164,390,178
19,955,612
Interest rate swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
2,742,490
1,925,738
1,537,970
1,418,490
Caps:
Sold ....................................................................................................
Bought ...............................................................................................
14,761,826
6,463,984
10,254,207
4,583,241
Floors:
Sold ...................................................................................................
Bought ...............................................................................................
Other:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
578,076
158,814
768,378
3,107,097
/
328,062
48,770
665,087
2,364,787
/
301
(224)
86,984
4,013,795
(3,930,933)
(2,864)
5,529
12,574
(24,927)
4,137
(885)
2,282
301
(224)
86,984
4,013,795
(3,930,933)
(2,864)
5,529
12,574
(24,927)
4,137
(885)
2,282
11,697
(134)
¥ 101,027
11,697
(134)
¥ 101,027
111
SMFGNotes to Consolidated Financial StatementsSMFG 2014 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
March 31
Listed
Interest rate futures:
Millions of U.S. dollars
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$ 280,228
277,683
$ 132,494
127,064
$ (86)
82
$ (86)
82
Interest rate options:
Sold ....................................................................................................
Bought ...............................................................................................
7,604
260,874
4,307
138,658
(1)
41
(1)
41
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 ......................................
49,350
46,557
4,179,503
1,961,033
1,957,607
259,453
Interest rate swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
26,657
18,718
Caps:
Sold ....................................................................................................
Bought ...............................................................................................
143,486
62,830
Floors:
Sold ...................................................................................................
Bought ...............................................................................................
Other:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
5,619
1,544
7,469
30,201
/
—
—
3,416,843
1,623,597
1,597,883
193,970
14,949
13,788
99,672
44,549
3,189
474
6,465
22,986
/
3
(2)
845
39,014
(38,209)
(28)
54
122
(242)
40
(9)
22
3
(2)
845
39,014
(38,209)
(28)
54
122
(242)
40
(9)
22
114
(1)
$ 982
114
(1)
$ 982
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 or other relevant exchanges.
Fair value of OTC transactions is calculated using discounted present value and option pricing models.
112
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(b) Currency derivatives
March 31
Listed
Currency futures:
Millions of yen
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 70,439
13
¥ —
—
¥ 31
0
¥ 31
0
Over-the-counter
Currency swaps .......................................................................................
Currency swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
Forward foreign exchange .......................................................................
Currency options:
Sold ....................................................................................................
Bought ...............................................................................................
Total ......................................................................................................
March 31
Listed
Currency futures:
22,084,755
15,372,964
445,125
31,029
202,168
338,266
50,921,507
2,567,685
2,386,911
/
196,919
313,407
3,687,400
1,238,886
1,096,745
/
(101)
480
(68,956)
(163,998)
121,475
¥334,057
(101)
480
(68,956)
(163,998)
121,475
¥ (80,039)
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
Millions of U.S. dollars
2014
(3,142)
8,197
64,824
(179,925)
181,758
¥ 50,513
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$ 685
0
$ —
—
$ 0
0
Over-the-counter
Currency swaps .......................................................................................
Currency swaptions:
Sold ....................................................................................................
Bought ...............................................................................................
Forward foreign exchange .......................................................................
Currency options:
Sold ....................................................................................................
Bought ...............................................................................................
Total ......................................................................................................
214,665
149,426
4,327
1,965
3,288
494,960
24,958
23,201
/
1,914
3,046
35,842
12,042
10,660
/
(1)
5
(670)
(1,594)
1,181
$3,247
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 or other relevant exchanges.
Fair value of OTC transactions is calculated using discounted present value and option pricing models.
$ 0
0
302
(1)
5
(670)
(1,594)
1,181
$ (778)
113
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(c) Equity derivatives
March 31
Listed
Equity price index futures:
Millions of yen
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥487,519
205,511
Equity price index options:
Sold ....................................................................................................
Bought ...............................................................................................
83,309
66,046
Over-the-counter
Equity options:
Sold ....................................................................................................
Bought ...............................................................................................
220,479
227,041
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 .......................................................................................................
—
14,995
9,270
22,313
/
¥ —
—
31,150
18,150
220,479
223,876
—
381
9,020
20,530
/
¥ (2,819)
920
(4,733)
3,107
(25,656)
26,751
—
(262)
(975)
1,497
¥ (2,169)
¥ (2,819)
920
(4,733)
3,107
(25,656)
26,751
—
(262)
(975)
1,497
¥ (2,169)
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)
114
SMFGNotes to Consolidated Financial StatementsSMFG 2014 March 31
Listed
Equity price index futures:
Millions of U.S. dollars
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
Equity price index options:
Sold ....................................................................................................
Bought ...............................................................................................
$4,739
1,998
810
642
Over-the-counter
Equity options:
Sold ....................................................................................................
Bought ...............................................................................................
2,143
2,207
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 .......................................................................................................
—
146
90
217
/
$ —
—
303
176
2,143
2,176
—
4
88
200
/
$ (27)
9
(46)
30
(249)
260
—
(3)
(9)
15
$ (21)
$ (27)
9
(46)
30
(249)
260
—
(3)
(9)
15
$ (21)
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 price on the Osaka Exchange and other relevant exchanges at March 31, 2014. Fair value
of transactions listed on exchange is calculated using the closing price on the Tokyo Stock Exchange and other relevant exchanges at March 31, 2013. Fair value of
OTC transactions is calculated using option pricing models.
(d) Bond derivatives
March 31
Listed
Bond futures:
Millions of yen
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥1,347,967
1,291,682
¥ —
—
¥4,517
(4,845)
¥4,517
(4,845)
Bond futures options:
Sold ....................................................................................................
Bought ...............................................................................................
6,172
10,172
Over-the-counter
Forward bond agreements:
Sold ....................................................................................................
Bought ...............................................................................................
Bond options:
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
302
—
77,673
199,487
/
—
—
—
—
(13)
7
2
—
(13)
7
2
—
—
121,065
/
(61)
880
¥ 487
(61)
880
¥ 487
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)
115
SMFGNotes to Consolidated Financial StatementsSMFG 2014
March 31
Listed
Bond futures:
Millions of U.S. dollars
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$13,102
12,555
$ —
—
Bond futures options:
Sold ....................................................................................................
Bought ...............................................................................................
Over-the-counter
Forward bond agreements:
Sold ....................................................................................................
Bought ...............................................................................................
Bond options:
60
99
3
—
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
755
1,939
/
—
—
—
—
—
1,177
/
$44
(47)
(0)
0
0
—
(1)
9
$ 5
$44
(47)
(0)
0
0
—
(1)
9
$ 5
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 price on the Osaka Exchange and other relevant exchanges at March 31, 2014. Fair value
of transactions listed on exchange is calculated using the closing price on the Tokyo Stock Exchange and other relevant exchanges at March 31, 2013. 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
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
¥ 6,564
7,201
¥ —
—
¥ (88)
90
¥ (88)
90
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 .......................................................................................................
95,227
86,006
7,016
8,771
2,282
/
71,255
58,936
5,408
6,631
1,327
/
(9,702)
19,770
(668)
(197)
47
¥ 9,250
(9,702)
19,770
(668)
(197)
47
¥ 9,250
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
116
SMFGNotes to Consolidated Financial StatementsSMFG 2014
March 31
Listed
Commodity futures:
Millions of U.S. dollars
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
$ 64
70
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 .......................................................................................................
926
836
68
85
22
/
$ —
—
693
573
53
64
13
/
$ (1)
1
(94)
192
(6)
(2)
0
$ 90
$ (1)
1
(94)
192
(6)
(2)
0
$ 90
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 or other relevant exchanges.
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
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
¥810,582
925,268
/
¥440,541
522,885
/
¥ 4,484
(7,037)
¥(2,552)
¥ 4,484
(7,037)
¥(2,552)
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 U.S. dollars
2014
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ....................................................................................................
Bought ...............................................................................................
Total .......................................................................................................
$7,879
8,994
/
$4,282
5,082
/
$ 44
(68)
$(25)
$ 44
(68)
$(25)
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 2014
(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 notional amount, fair value, valuation gains (losses)
and fair value calculation methodologies by type of derivative and hedge accounting method 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
deposit
Recognition of gain or loss
on the hedged items
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 floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Total ....................................................................
borrowed money; bonds
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
deposit
Recognition of gain or loss
on the hedged items
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
Millions of yen
2014
Contract amount
Total
Over 1 year
Fair value
¥ 823,040
—
45,269,809
29,012,108
16,247,276
10,423
¥ 823,040
—
40,624,307
25,144,657
15,479,650
—
¥ 24
—
19,873
393,005
(373,123)
(8)
11,543
—
23,267
23,267
211,678
18,475
193,202
90,591
85,591
5,000
/
11,543
—
18,139
18,139
173,544
8,581
164,962
76,689
73,689
3,000
/
154
—
383
(383)
(4,588)
(482)
(4,105)
(Note 3)
¥ 15,464
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
118
SMFGNotes to Consolidated Financial StatementsSMFG 2014 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
deposit
Recognition of gain or loss
on the hedged items
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 floating rate/payable fixed rate .......
Receivable floating rate/payable floating rate ...
Total ....................................................................
borrowed money; bonds
Millions of U.S. dollars
2014
Contract amount
Total
Over 1 year
Fair value
$ 8,000
—
440,025
281,999
157,925
101
$ 8,000
—
394,871
244,408
150,463
—
112
—
226
226
2,058
180
1,878
881
832
49
/
112
—
176
176
1,687
83
1,603
745
716
29
/
$ 0
—
193
3,820
(3,627)
(0)
1
—
4
(4)
(45)
(5)
(40)
(Note 3)
$ 150
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 or other relevant exchanges.
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 transactions that are subject to the
hedge. Therefore such fair value is included in the fair value of the relevant transaction subject to the hedge in “27. Financial Instruments.”
(b) Currency derivatives
March 31
Hedge accounting method
Deferral hedge method
Recognition of gain or loss
on the hedged items
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
2014
Contract amount
Total
¥5,002,828
24,659
Over 1 year
¥3,567,270
—
Fair value
¥(500,931)
208
34,642
309,265
28,466
3,720
/
6,075
14,658
24,870
—
/
3,350
910
(Note 3)
¥(496,461)
119
SMFGNotes to Consolidated Financial StatementsSMFG 2014
March 31
Hedge accounting method
Deferral hedge method
Recognition of gain or loss
on the hedged items
Allocation method
March 31
Hedge accounting method
Deferral hedge method
Recognition of gain or loss
on the hedged items
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
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 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)
Millions of U.S. dollars
2014
Contract amount
Total
$48,628
240
Over 1 year
$34,674
—
Fair value
$(4,869)
2
337
3,006
277
36
/
59
142
242
—
/
33
9
(Note 3)
$(4,826)
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 transactions that are subject to the hedge. Therefore
such fair value is included in the fair value of the relevant transaction subject to the hedge in “27. Financial Instruments.”
(c) Equity derivatives
March 31
Hedge accounting method
Recognition of gain or loss
on the hedged items
March 31
Hedge accounting method
Recognition of gain or loss
on the hedged items
March 31
Hedge accounting method
Recognition of gain or loss
on the hedged items
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 ....................................................................
Millions of yen
2014
Contract amount
Total
Over 1 year
Fair value
¥ —
115,244
/
¥ —
59,945
/
¥ —
3,483
¥3,483
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 ....................................................................
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 ....................................................................
¥ —
158,716
/
¥ —
66,668
/
¥ —
(24,100)
¥(24,100)
Millions of U.S. dollars
2014
Contract amount
Total
Over 1 year
Fair value
$ —
1,120
/
$ —
583
/
$—
34
$34
Note: Fair value is calculated using discounted present value.
120
SMFGNotes to Consolidated Financial StatementsSMFG 2014
30. Employee Retirement Benefits
Fiscal year ended March 31, 2014
(1) Outline of employee retirement benefits
Consolidated subsidiaries of SMFG have funded and unfunded contributory defined benefit pension plans and defined-contribution
pension plans for benefit payments to their employees.
Funded contributory defined benefit pension plans mainly consist of contributory funded defined benefit pension plans and lump-sum
severance indemnity plans which set up employee retirement benefit trusts.
Unfunded contributory defined benefit pension plans are lump-sum severance indemnity plans which do not use such trust scheme.
Some consolidated subsidiaries adopt the simplified method in calculating the projected benefit obligation. Additional benefits may
also be granted when employees retire.
(2) Contributory defined benefit pension plan
(a) Reconciliation of beginning and ending balances of projected benefit obligation
Year ended March 31
Beginning balance of projected benefit obligation ...............................................
Service cost ......................................................................................................
Interest cost on projected benefit obligation .....................................................
Unrecognized net actuarial gain or loss incurred ..............................................
Payments of retirement benefits .......................................................................
Unrecognized prior service cost ........................................................................
Other ...............................................................................................................
Ending balance of projected benefit obligation ....................................................
(b) Reconciliation of beginning and ending balances of plan assets
Year ended March 31
Beginning balance of plan assets ..........................................................................
Expected return on plan assets .........................................................................
Unrecognized net actuarial gain or loss incurred ..............................................
Contributions by the employer ........................................................................
Payments of retirement benefits .......................................................................
Other ...............................................................................................................
Ending balance of plan assets ...............................................................................
Millions of yen
2014
¥1,117,085
30,713
17,115
(19,815)
(56,367)
(74)
631
¥1,089,286
Millions of yen
2014
¥1,036,130
31,068
90,050
46,496
(41,077)
1,165
¥1,163,834
Millions of U.S. dollars
2014
$10,858
299
166
(193)
(548)
(1)
6
$10,588
Millions of U.S. dollars
2014
$10,071
302
875
452
(399)
11
$11,313
(c) Reconciliation of the projected benefit obligation and plan assets to net defined benefit asset and net defined benefit liability
reported on the consolidated balance sheet
March 31
Funded projected benefit obligation ....................................................................
Plan assets ...........................................................................................................
Unfunded projected benefit obligation ................................................................
Net amount of asset and liability reported on the consolidated balance sheet .......
March 31
Net defined benefit asset .....................................................................................
Net defined benefit liability ................................................................................
Net amount of assets and liability reported on the consolidated balance sheet ......
Millions of yen
2014
¥(1,055,829)
1,163,834
108,004
(33,457)
¥ 74,547
Millions of yen
2014
¥119,932
(45,385)
¥ 74,547
Millions of U.S. dollars
2014
$(10,263)
11,313
1,050
(325)
$ 725
Millions of U.S. dollars
2014
$1,166
(441)
$ 725
121
SMFGNotes to Consolidated Financial StatementsSMFG 2014 (d) Pension expenses
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) ..................
Pension expenses .................................................................................................
Millions of yen
2014
¥30,713
17,115
(31,068)
36,294
(182)
1,325
¥54,197
Millions of U.S. dollars
2014
$299
166
(302)
353
(2)
13
$527
Note: Pension expenses of consolidated subsidiaries which adopt the simplified method are included in “Service cost.”
(e) Remeasurements of defined benefit plans
The breakdown of “Remeasurements of defined benefit plans” (before deducting tax effect) is as shown below:
March 31
Unrecognized prior service cost ...........................................................................
Unrecognized net actuarial gain or loss ................................................................
Total ....................................................................................................................
Millions of yen
2014
¥ (1,146)
116,198
¥115,051
Millions of U.S. dollars
2014
$ (11)
1,129
$1,118
(f) Plan assets
(i) Major asset classes of plan assets
The proportion of major asset classes to the total plan assets is as follows:
Year ended March 31
Stocks ............................................................................................................
Bonds ............................................................................................................
Other ............................................................................................................
Total ..............................................................................................................
2014
59.4%
22.9
17.7
100.0%
Note: The retirement benefit trusts set up for employee pension plans and lump-sum severance indemnity plans account for 34.1% of the total plan assets.
(ii) Method for setting the long-term expected rate of return on plan assets
The long-term expected rate of return on plan assets is determined based on the current and expected allocation of plan assets and
the current and expected long-term rates of return on various asset classes of plan assets.
(g) Actuarial assumptions
The principal assumptions used in determining benefit obligation and pension expenses were as follows:
(i) Discount rate
Year ended March 31
Domestic consolidated subsidiaries ................................................................
Overseas consolidated subsidiaries .................................................................
2014
0.4% to 2.0%
3.5% to 11.3%
(ii) Long-term expected rate of return on plan assets
Year ended March 31
Domestic consolidated subsidiaries ................................................................
Overseas consolidated subsidiaries .................................................................
2014
0% to 4.0%
4.3% to 10.5%
(3) Defined contribution plan
The amount required to be contributed by consolidated subsidiaries is ¥5,936 million ($58 million) at March 31, 2014.
122
SMFGNotes to Consolidated Financial StatementsSMFG 2014 Fiscal years ended March 31, 2013
(1) Outline of employee retirement benefits
Domestic consolidated subsidiaries of SMFG have contributory and non-contributory funded or unfunded defined benefit pension plans
such as employee pension plans, qualified pension plans and lump-sum severance indemnity plans. Certain domestic consolidated sub-
sidiaries adopt defined contribution pension plan. Certain domestic consolidated subsidiaries have a general type of employee pension
plans. They may grant additional benefits in cases where certain requirements are met when employees retire.
Some overseas consolidated subsidiaries adopt defined benefit pension plans and defined contribution pension plans.
SMBC and some domestic consolidated subsidiaries contributed some of their marketable equity securities to employee retirement
benefits trusts.
(2) Projected benefit obligation
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) ...................................
Millions of yen
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: Certain consolidated subsidiaries adopt the simplified method in calculating the projected benefit obligation.
(3) Pension expenses
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) ........
Pension expenses .......................................................................................
Millions of yen
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 simplified method are included in “Service cost.”
2. Premium paid to defined contribution pension is included in “Other.”
(4) Assumptions
The principal assumptions used in determining benefit obligation and pension expenses at or for the fiscal year ended March 31, 2013
was 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
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 year ended March 31, 2013.
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 year ended March 31, 2013.
123
SMFGNotes to Consolidated Financial StatementsSMFG 2014
31. Stock Options
(1) Share-based compensation expenses which were accounted for as general and administrative expenses in the fiscal years ended March 31,
2014 and 2013 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:
Millions of yen
Millions of yen
2013
¥584
2013
¥10
2014
¥549
2014
¥13
Millions of
U.S. dollars
2014
$5
Millions of
U.S. dollars
2014
$0
(a) SMFG
(i) 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 ......................
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.
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 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
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
July 29, 2013
Directors of SMFG: 9
Corporate auditors of SMFG: 3
Executive officers of SMFG: 3
Directors, corporate auditors,
executive officers of SMBC: 67
Common shares: 115,700
August 14, 2013
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 27, 2013 to the closing of the ordinary
general meeting of shareholders of SMFG for the
fiscal year ended March 31, 2014.
August 14, 2013 to August 13, 2043
124
SMFGNotes to Consolidated Financial StatementsSMFG 2014 (ii) 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 ...........
July 28, 2010
July 29, 2011
July 30, 2012
July 29, 2013
50,800
—
—
11,200
39,600
48,200
11,200
600
—
58,800
244,700
—
—
59,500
185,200
18,000
59,500
900
—
76,600
277,200
—
2,300
16,500
258,400
2,200
16,500
—
—
18,700
—
115,700
200
100
115,400
—
100
—
—
100
July 28, 2010
July 29, 2011
July 30, 2012
July 29, 2013
¥ 1
5,050
2,215
¥ 1
5,050
1,872
¥ 1
—
2,042
¥ 1
—
4,159
(iii) Valuation technique used for valuating fair value of stock options
Stock options granted in the fiscal year ended March 31, 2014 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 15, 2009 and August 14,
July 29, 2013
31.24%
4 years
¥110 per share
0.23%
2013.
*2 The average expected life could not be estimated rationally due to insufficient amount of data.
Therefore, it was estimated based on average tenures 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, 2014 of the date of grant.
*4 Japanese government bond yield corresponding to the average expected life.
(iv) Method of estimating the 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.
(b) Kansai Urban Banking Corporation
(i) Outline of stock options
Date of resolution
Title and number of grantees ......................................
June 27, 2003 June 29, 2004 June 29, 2005 June 29, 2006 June 29, 2006
Officers not
doubling as
directors 14
Employees 46
Directors and
employees
174
Directors and
employees
65
Directors and
employees
183
Directors
9
Number of stock options* ...........................................
Common shares
306,000
Common shares
399,000
Common shares
464,000
Common shares
162,000
Common shares
115,000
Grant date .................................................................. July 31, 2003
Condition for vesting ..................................................
Requisite service period ..............................................
Exercise period ...........................................................
N.A.
N.A.
June 28, 2005
to June 27,
2013
July 30, 2004
July 29, 2005
July 31, 2006
July 31, 2006
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
June 30, 2006
to June 29,
2014
June 30, 2007
to June 29,
2015
June 30, 2008
to June 29,
2016
June 30, 2008
to June 29,
2016
125
SMFGNotes to Consolidated Financial StatementsSMFG 2014
Date of resolution
Title and number of grantees .....................................
Directors
10
June 28, 2007 June 28, 2007 June 27, 2008 June 26, 2009
Directors 11
Officers not
doubling as
directors 14
Employees 57
Directors 9
Officers not
doubling as
directors 16
Employees 45
Officers not
doubling as
directors 14
Employees 48
Number of stock options* ...........................................
Common shares
174,000
Common shares
112,000
Common shares
289,000
Common shares
350,000
Grant date .................................................................. July 31, 2007
Condition for vesting ..................................................
Requisite service period ..............................................
Exercise period ...........................................................
N.A.
N.A.
June 29, 2009
to June 28,
2017
July 31, 2007
July 31, 2008
July 31, 2009
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
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.
(ii) Stock options granted and changes
Number of stock options*
Date of resolution
Before vested
June 27, 2003 June 29, 2004 June 29, 2005 June 29, 2006 June 29, 2006
Previous fiscal year-end ...........................................
Granted ..................................................................
Forfeited .................................................................
Vested.....................................................................
Outstanding ...........................................................
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
After vested
Previous fiscal year-end ........................................... 166,000
Vested.....................................................................
—
—
Exercised ................................................................
Forfeited ................................................................. 166,000
Exercisable ..............................................................
245,000
—
—
48,000
— 197,000
334,000
—
—
62,000
272,000
13,000
—
—
36,000
94,000
86,000
—
—
18,000
68,000
Date of resolution
Before vested
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 ........................................... 158,000
—
Vested.....................................................................
—
Exercised ................................................................
Forfeited .................................................................
36,000
Exercisable .............................................................. 122,000
105,000
—
—
25,000
80,000
289,000
—
—
5,000
284,000
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 .........................................
June 27, 2003 June 29, 2004 June 29, 2005 June 29, 2006 June 29, 2006
¥313
—
—
¥202
—
—
¥490
—
138
¥179
—
—
¥490
—
138
Date of resolution
Exercise price ..............................................................
Average exercise price .................................................
Fair value at the grant date .........................................
June 28, 2007 June 28, 2007 June 27, 2008 June 26, 2009
¥461
—
96
¥461
—
96
¥302
—
37
¥193
—
51
(iii) Method of estimating the 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.
126
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(c) THE MINATO BANK, LTD. (“MINATO”)
(i) 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.
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 27, 2013
Directors: 7,
Officers: 12
Common shares: 334,000
July 19, 2013
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 27, 2013 to the closing of the ordinary
general meeting of shareholders of MINATO for
the fiscal year ended March 31, 2014.
July 20, 2013 to July 19, 2043
(ii) 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 28, 2012
June 27, 2013
312,000
—
—
40,000
272,000
44,000
40,000
11,000
—
73,000
—
334,000
6,000
22,000
306,000
—
22,000
—
—
22,000
June 28, 2012
June 27, 2013
¥ 1
181
132
¥ 1
—
166
(iii) 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 20, 2011 to July 19, 2013.
*2 The average expected life could not be estimated rationally due to insufficient amount of data.
Therefore, it was estimated based on average tenures of officers of MINATO.
June 27, 2013
29.62%
2 years
¥5 per share
0.13%
*3 Expected dividends are based on the actual dividends on common stock for the fiscal year ended March 31, 2013.
*4 Japanese government bond yield corresponding to the average expected life.
(iv) Method of estimating the 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.
127
SMFGNotes to Consolidated Financial StatementsSMFG 2014 32. Deferred Tax Assets and Liabilities
(1) Significant components of deferred tax assets and liabilities at March 31, 2014 and 2013 were as follows:
March 31
Deferred tax assets:
Millions of yen
2014
2013
Reserve for possible loan losses and write-off of loans .............................
Net operating loss carryforwards ............................................................
Write-off of securities ............................................................................
Reserve for employee retirement benefits ...............................................
Net defined benefit liability...................................................................
Remeasurements of defined benefit plans ...............................................
Net deferred losses on hedges .................................................................
Net unrealized gains on other securities .................................................
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 ......................................................................................
Other .....................................................................................................
Total deferred tax liabilities ...................................................................
Net deferred tax assets ...............................................................................
¥ 454,436
380,685
148,032
—
63,120
40,919
34,227
12,317
200,284
1,334,023
(681,593)
652,429
(408,763)
(38,524)
(20,378)
(114,972)
(582,640)
¥ 69,789
¥ 610,676
364,406
211,445
65,743
—
—
18,667
20,182
222,846
1,513,968
(735,017)
778,950
(313,945)
(38,524)
(18,725)
(101,616)
(472,812)
¥ 306,137
Millions of
U.S. dollars
2014
$ 4,417
3,700
1,439
—
614
398
333
120
1,947
12,967
(6,625)
6,342
(3,973)
(374)
(198)
(1,118)
(5,663)
$ 678
(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% for the years ended March 31, 2014 and 2013. 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, 2014 and 2013 was as follows:
March 31
Statutory tax rate ...............................................................................................................................
Difference between SMFG and overseas consolidated subsidiaries ...................................................
Valuation allowance .......................................................................................................................
Dividends exempted for income tax purposes .................................................................................
Equity in losses of affiliates ............................................................................................................
Effects of changes in the corporate income tax rate .........................................................................
Other .............................................................................................................................................
Effective income tax rate ....................................................................................................................
2013
38.01%
(3.61)
(20.06)
(0.99)
(0.19)
1.19
(0.63)
13.72%
2014
38.01%
(2.66)
(1.90)
(1.51)
(0.27)
0.78
(0.20)
32.25%
(3) Adjustments to deferred tax assets and liabilities arising from a change in the income tax rate
In accordance with the Act for Partial Revision of the Income Tax Act, etc. (Act No. 10 of 2014) promulgated on March 31, 2014, the
special corporate tax for reconstruction will be abolished from fiscal years beginning on or after April 1, 2014. Accordingly, the statu-
tory tax rate, which is used to calculate deferred tax assets and liabilities of the domestic subsidiaries for temporary differences which are
expected to be reversed in the fiscal year beginning on April 1, 2014, was changed. As a result the statutory tax rate used by SMFG was
changed from 38.01% to 35.64%. This change in the tax rate resulted in ¥11,538 million ($112 million) of a decrease in deferred tax
assets, ¥149 million ($1 million) of an increase in net unrealized gains on other securities, ¥22 million ($0 million) of an increase in net
deferred losses on hedges and ¥11,666 million ($113 million) of an increase in income taxes-deferred. Deferred tax liabilities for land
revaluation excess decreased by ¥18 million ($0 million), whereas land revaluation excess increased by the same amount.
128
SMFGNotes to Consolidated Financial StatementsSMFG 2014 33. Segment Information
(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 commercial banking, SMFG Group companies conduct businesses such as leasing, securities, consumer finance, and system
development and information processing. The primary businesses, “Commercial banking,” “Leasing,” “Securities,” and “Consumer
finance,” are separate reportable segments, and other businesses are aggregated as “Other business.”
In “Commercial banking,” SMBC assesses business performance by classifying businesses into 5 business units based on client seg-
ment: Consumer banking unit, Middle market banking unit, Corporate banking unit, International banking unit and Treasury unit.
(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
Commercial banking
Consumer
banking unit
Year ended March 31, 2014
Gross profit .................... ¥338,957
281,725
57,232
(284,660)
(26,398)
—
Interest income ...........
Non-interest income ...
Expenses .........................
Depreciation ...............
Other profit or loss .........
Consolidated net
business profit .............. ¥ 54,297
Sumitomo Mitsui
Finance and
Leasing Company,
Limited
Year ended March 31, 2014
Gross profit .................... ¥127,861
29,088
98,773
(54,787)
(4,070)
4,218
Interest income ...........
Non-interest income ...
Expenses .........................
Depreciation ...............
Other profit or loss .........
Consolidated net
business profit .............. ¥ 77,292
Middle market
banking unit
¥399,345
221,046
178,299
(219,057)
(22,626)
—
Corporate
banking unit
¥225,627
141,934
83,693
(40,295)
(5,658)
—
SMBC
International
banking unit
¥295,984
174,587
121,397
(89,344)
(9,689)
—
Subtotal
Treasury
unit
Head office
account
¥325,522 ¥ (27,250) ¥1,558,184
1,064,906
20,407
225,207
493,277
(47,658)
100,315
(745,745)
(89,420)
(22,969)
(81,666)
(12,480)
(4,815)
—
—
—
Others
Total
¥248,205 ¥1,806,389
1,236,052
171,145
570,337
77,060
(901,321)
(155,576)
(92,302)
(10,635)
13,913
13,913
¥180,288
¥185,332
¥206,640
¥302,553 ¥(116,671) ¥ 812,438
¥106,542 ¥ 918,981
Leasing
Securities
Millions of yen
Others
¥ 9,443
6,186
3,256
83
(415)
4,047
Total
¥137,304
35,274
102,029
(54,704)
(4,485)
8,266
SMBC
Nikko
Securities
Inc.
¥319,682
1,431
318,250
(221,800)
(2,337)
(693)
SMBC
Friend
Securities
Co., Ltd.
¥58,153
1,329
56,823
(42,426)
(1,927)
(379)
Others
¥19,922
(118)
20,040
(14,378)
(1,251)
412
Total
¥397,758
2,642
395,115
(278,605)
(5,516)
(660)
¥13,574
¥ 90,866
¥ 97,188
¥15,347
¥ 5,956
¥118,492
Millions of yen
Sumitomo
Mitsui Card
Company,
Limited
¥189,932
13,917
176,014
(139,625)
(10,336)
(6,582)
Consumer finance
SMBC
Consumer
Finance
Co., Ltd.
¥181,806
124,366
57,439
(75,453)
(3,732)
(79,814)
Cedyna
Financial
Corporation
¥154,633
27,208
127,424
(116,466)
(8,618)
(26,879)
Others
¥23,596
1,016
22,580
(14,658)
(1,591)
5,604
Total
¥549,968
166,509
383,459
(346,204)
(24,278)
(107,671)
Other
business
Grand total
¥18,099 ¥2,909,520
53,324 1,493,803
(35,225) 1,415,716
71,580 (1,509,254)
(138,060)
(11,477)
(157,901)
(71,749)
¥ 43,724
¥ 11,287
¥ 26,538
¥14,542
¥ 96,092
¥17,930 ¥1,242,363
Year ended March 31, 2014
Gross profit ....................
Interest income ...........
Non-interest income ...
Expenses .........................
Depreciation ...............
Other profit or loss .........
Consolidated net
business profit ..............
129
SMFGNotes to Consolidated Financial StatementsSMFG 2014
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
Millions of yen
Commercial banking
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
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
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
business
Grand total
¥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 ..............
130
SMFGNotes to Consolidated Financial StatementsSMFG 2014 Millions of U.S. dollars
Commercial banking
Year ended March 31, 2014
Gross profit ....................
Interest income ...........
Non-interest income ...
Expenses .........................
Depreciation ...............
Other profit or loss .........
Consolidated net
business profit ..............
Consumer
banking unit
$3,295
2,738
556
(2,767)
(257)
—
Middle market
banking unit
$3,882
2,149
1,733
(2,129)
(220)
—
Corporate
banking unit
$2,193
1,380
814
(392)
(55)
—
SMBC
International
banking unit
$2,877
1,697
1,180
(868)
(94)
—
Treasury
unit
$3,164
2,189
975
(223)
(47)
—
Head office
account
$ (265)
198
(463)
(869)
(121)
—
Subtotal
$15,146
10,351
4,795
(7,249)
(794)
—
Others
$2,413
1,664
749
(1,512)
(103)
135
Total
$17,558
12,015
5,544
(8,761)
(897)
135
$ 528
$1,752
$1,801
$2,009
$2,941
$(1,134)
$ 7,897
$1,036
$ 8,933
Sumitomo Mitsui
Finance and
Leasing Company,
Limited
$1,243
283
960
(533)
(40)
41
Leasing
Others
$ 92
60
32
1
(4)
39
Millions of U.S. dollars
Securities
SMBC
Nikko
Securities
Inc.
$3,107
14
3,093
(2,156)
(23)
(7)
SMBC
Friend
Securities
Co., Ltd.
$565
13
552
(412)
(19)
(4)
Total
$1,335
343
992
(532)
(44)
80
Others
$194
(1)
195
(140)
(12)
4
Total
$3,866
26
3,841
(2,708)
(54)
(6)
$ 751
$132
$ 883
$ 945
$149
$ 58
$1,152
Year ended March 31, 2014
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
$1,846
135
1,711
(1,357)
(100)
(64)
Consumer finance
SMBC
Consumer
Finance
Co., Ltd.
$1,767
1,209
558
(733)
(36)
(776)
Cedyna
Financial
Corporation
$1,503
264
1,239
(1,132)
(84)
(261)
Others
$229
10
219
(142)
(15)
54
Total
$5,346
1,618
3,727
(3,365)
(236)
(1,047)
Other
business
$176
518
(342)
696
(112)
(697)
Grand total
$28,281
14,520
13,761
(14,670)
(1,342)
(1,535)
$ 425
$ 110
$ 258
$141
$ 934
$174
$12,076
Year ended March 31, 2014
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 (exclud-
ing nonrecurring factors) + Equity method affiliates’ ordinary profit ✕ Ownership ratio – Inter-segment 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. Consolidated net business profit represents 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 represents 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 eliminated as inter-segment transactions.
131
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(4) Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on consolidated state-
ments of income (adjustment of difference)
Millions of yen
Year ended March 31
Consolidated net business profit ................................................................
Total credit cost of SMBC ..........................................................................
Gains (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 ................................
2014
¥1,242,363
123,920
106,410
(33,163)
82,614
(21,848)
(6,527)
(61,438)
¥1,432,332
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
2014
$12,076
1,205
1,034
(322)
803
(212)
(63)
(597)
$13,922
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. Gains (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
(a) Information on each service (Ordinary income to external customers)
Millions of yen
Year ended March 31
Commercial banking ............................................................................
Leasing .................................................................................................
Securities ..............................................................................................
Consumer finance .................................................................................
Other business ......................................................................................
Total .....................................................................................................
2014
¥2,541,625
586,777
402,925
992,827
117,724
¥4,641,880
Notes: 1. Ordinary income is presented as a counterpart of sales of companies in other industries.
2013
¥2,349,835
506,267
396,531
1,021,137
52,654
¥4,326,424
Millions of
U.S. dollars
2014
$24,705
5,704
3,916
9,650
1,144
$45,119
2. Ordinary income represents total income excluding gains on disposal of fixed assets, gains on recoveries of written-off claims and other extraordinary gains.
(b) Geographic information
(i) Ordinary income
Year ended March 31
Japan ..............................................................................................
The Americas .................................................................................
Europe and Middle East ..................................................................
Asia and Oceania ............................................................................
Total ...............................................................................................
2014
¥3,762,300
237,908
354,980
286,690
¥4,641,880
Notes: 1. Ordinary income is presented as a counterpart of sales of companies in other industries.
2013
¥3,555,350
198,817
284,686
287,570
¥4,326,424
Millions of yen
Millions of
U.S. dollars
2014
$36,570
2,312
3,450
2,787
$45,119
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.
(ii) Tangible fixed assets
Year ended March 31
Japan ..............................................................................................
The Americas .................................................................................
Europe and Middle East ..................................................................
Asia and Oceania ............................................................................
Total ...............................................................................................
2014
¥1,296,644
132,232
902,456
15,455
¥2,346,788
2013
¥1,186,126
17,913
763,870
15,861
¥1,983,772
Millions of yen
Millions of
U.S. dollars
2014
$12,603
1,285
8,772
150
$22,811
(c) Information by major customer
There are no major customers individually accounting for 10% or more of ordinary income.
132
SMFGNotes to Consolidated Financial StatementsSMFG 2014
(6) Information on impairment loss for fixed assets by reportable segment
Year ended March 31
Commercial banking .................................................................................
Leasing ......................................................................................................
Securities ...................................................................................................
Consumer finance ......................................................................................
Other business ...........................................................................................
Total ..........................................................................................................
Millions of yen
2014
2013
¥2,551
—
65
481
250
¥3,348
¥3,591
—
537
107
78
¥4,314
Millions of
U.S. dollars
2014
$25
—
1
5
2
$33
(7) Information on amortization of goodwill and unamortized balance by reportable segment
Millions of yen
2014
2013
Year ended March 31
Commercial banking .....
Leasing ..........................
Securities .......................
Consumer finance ..........
Other business ...............
Total ..............................
Amortization
of goodwill
¥ 1,380
9,664
14,021
3,942
23
¥29,033
Unamortized
balance
¥ 24,109
80,523
202,216
70,200
94
¥377,145
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 U.S. dollars
2014
Amortization
of goodwill
$ 13
94
136
38
0
$282
Unamortized
balance
$ 234
783
1,966
682
1
$3,666
(8) Information on gains on negative goodwill by reportable segment
There is no significant information to be disclosed for the fiscal year ended March 31, 2014 and 2013.
(9) Information on total credit cost by reportable segment
Year ended March 31
Commercial banking .................................................................................
Leasing ......................................................................................................
Securities ...................................................................................................
Consumer finance ......................................................................................
Other business ...........................................................................................
Total ..........................................................................................................
2014
¥(116,546)
(889)
11
66,796
1,554
¥ (49,073)
2013
¥ 63,693
5,289
315
69,342
34,473
¥173,115
Millions of yen
Millions of
U.S. dollars
2014
$(1,133)
(9)
0
649
15
$ (477)
Notes: 1. Total credit cost = Provision for reserve for possible loan losses + 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. “Other business” includes profit or loss to be eliminated as inter-segment transactions.
34. Business Combinations
There is no significant business combination to be disclosed.
133
SMFGNotes to Consolidated Financial StatementsSMFG 2014
35. Per Share Data
As of and year ended March 31
Net assets per share .............................................................................................
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.
Year ended March 31
Net income per share:
2014
¥5,323.87
611.45
611.14
Yen
2013
¥4,686.69
586.49
585.94
U.S. dollars
2014
$51.75
5.94
5.94
Millions of yen, except number of shares
2014
2013
Millions of U.S. dollars
2014
Net income ..........................................................................................................................
Amount not attributable to common stockholders ...............................................................
Net income attributable to common stock ...........................................................................
Average number of common stock during the fiscal year (in thousands) ...............................
¥835,357
—
¥835,357
1,366,186
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 (in thousands) ............................................................................
¥ (0)
(0)
698
698
¥794,059
—
¥794,059
1,353,925
¥ (437)
(437)
519
519
$8,120
—
$8,120
/
$ (0)
(0)
/
/
Outline of dilutive shares which were not included in the calculation of “Net income per share (diluted)” for the fiscal year ended March 31, 2013 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
2014
¥9,005,019
1,725,832
1,791
1,724,041
¥7,279,186
2013
¥8,443,218
2,098,020
1,260
2,096,760
¥6,345,197
Millions of U.S. dollars
2014
$87,529
16,775
17
16,758
$70,754
1,367,273
1,353,876
/
(Changes in accounting policies)
SMFG has adopted the Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, issued on May 17, 2012, the “Accounting Standard”) and the Guidance on
Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, the “Guidance”) applicable from the fiscal year ended March 31, 2014 (excluding the provisions set
out in the main text of Paragraph 35 and Paragraph 67 of the Accounting Standard and the Guidance, respectively). Accordingly, the difference between the projected benefit
obligation and plan assets is reported as either Net defined benefit asset or Net defined benefit liability from the fiscal year ended March 31, 2014.
In accordance with the transitional treatment stipulated in Paragraph 37 of the Accounting Standard, unrecognized net actuarial gain or loss and unrecognized prior
service cost, after adjusting tax effect, are reported as Remeasurements of defined benefit plans in Accumulated other comprehensive income from the fiscal year ended March
31, 2014.
As a result, net assets per share as of March 31, 2014 decreased by ¥ 53.81 ($0.52).
36. Significant Subsequent Events
There are no significant subsequent events to be disclosed.
134
SMFGNotes to Consolidated Financial StatementsSMFG 2014
37. Nonconsolidated Financial Statements
(1) Nonconsolidated Balance Sheets
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 ...........................................................................................
¥ 124,042
79,901
31
51
42,244
1,814
6,155,756
1
0
1
267
267
6,155,487
6,155,487
¥6,279,799
¥1,233,133
1,228,030
916
3,275
17
7
157
98
630
392,900
392,900
1,626,033
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
1,583,721
1,559,374
24,347
743,081
30,420
712,661
(12,566)
4,652,131
1,634
4,653,766
¥6,279,799
Millions of yen
2014
2013
Millions of
U.S. dollars (Note 1)
2014
¥ 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
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
$ 1,206
777
0
0
411
18
59,834
0
0
0
3
3
59,832
59,832
$61,040
$11,986
11,937
9
32
0
0
2
1
6
3,819
3,819
15,805
22,724
15,394
15,157
237
7,223
296
6,927
(122)
45,219
16
45,235
$61,040
135
SMFGNotes to Consolidated Financial StatementsSMFG 2014 (2) Nonconsolidated Statements of Income
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 ...........................................................................................
2014
¥220,309
206,833
13,476
25,256
8,788
16,468
195,052
141
57
5
78
6,172
6,170
2
—
189,021
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
Income before income taxes ...................................................................
Income taxes:
189,021
147,985
Income taxes-current ............................................................................
Net income ................................................................................................
3
¥189,018
3
¥147,981
Millions of
U.S. dollars (Note 1)
2014
$2,141
2,010
131
245
85
160
1,896
1
1
0
1
60
60
0
—
1,837
1,837
0
$1,837
Per share data:
Net income ............................................................................................
Net income — diluted ...........................................................................
¥134.04
133.98
¥104.93
104.89
$1.30
1.30
Yen
2014
2013
U.S. dollars (Note 1)
2014
136
SMFGNotes to Consolidated Financial StatementsSMFG 2014 (3) Nonconsolidated Statements of Changes in Net Assets
Millions of yen
Stockholders’ equity
Capital surplus
Retained earnings
Other retained earnings
Capital
stock
Capital reserve
Other capital
surplus
Total capital
surplus
Voluntary
reserve
Retained
earnings
brought forward
Total retained
earnings
¥2,337,895
¥1,559,374
¥24,343
¥1,583,717
¥30,420
¥699,913
¥730,333
(176,270)
189,018
(176,270)
189,018
—
—
3
3
3
3
—
12,747
12,747
¥2,337,895
¥1,559,374
¥24,347
¥1,583,721
¥30,420
¥712,661
¥743,081
Year ended March 31, 2014
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 ...........................
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 ...........
Year ended March 31, 2014
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 ...........................
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 ...........
Millions of yen
Stockholders’ equity
Treasury stock
Total
Stock
acquisition
rights
Total net assets
¥(12,082)
¥4,639,865
¥1,140
¥4,641,005
(176,270)
189,018
(500)
19
(500)
16
(484)
12,266
494
494
(176,270)
189,018
(500)
19
494
12,760
¥(12,566)
¥4,652,131
¥1,634
¥4,653,766
137
SMFGNotes to Consolidated Financial StatementsSMFG 2014 Millions of yen
Stockholders’ equity
Capital surplus
Retained earnings
Other retained earnings
Capital
stock
Capital reserve
Other capital
surplus
Total capital
surplus
Voluntary
reserve
Retained
earnings
brought forward
Total retained
earnings
¥2,337,895
¥1,559,374
¥63,592
¥1,622,966
¥30,420
¥690,676
¥721,096
(138,743)
147,981
(138,743)
147,981
(39,249)
(39,249)
—
—
(39,249)
(39,249)
—
9,237
9,237
¥2,337,895
¥1,559,374
¥24,343
¥1,583,717
¥30,420
¥699,913
¥730,333
Year ended March 31, 2013
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 ...........................
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 ...........
Year ended March 31, 2013
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 ...........................
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 ...........
Millions of yen
Stockholders’ equity
Treasury stock
Total
Stock
acquisition
rights
Total net assets
¥(154,926)
¥4,527,031
¥ 598
¥4,527,629
(138,743)
147,981
(263)
(263)
143,107
103,858
142,844
112,833
542
542
(138,743)
147,981
(263)
103,858
542
113,375
¥ (12,082)
¥4,639,865
¥1,140
¥4,641,005
138
SMFGNotes to Consolidated Financial StatementsSMFG 2014 Millions of U.S. dollars (Note 1)
Stockholders’ equity
Capital surplus
Retained earnings
Other retained earnings
Capital
stock
Capital reserve
Other capital
surplus
Total capital
surplus
Voluntary
reserve
Retained
earnings
brought forward
Total retained
earnings
$22,724
$15,157
$237
$15,394
$296
$6,803
$7,099
(1,713)
1,837
(1,713)
1,837
—
$296
124
$6,927
124
$7,223
—
—
0
0
0
0
$22,724
$15,157
$237
$15,394
Millions of U.S. dollars (Note 1)
Stockholders’ equity
Treasury stock
Total
Stock
acquisition
rights
Total net assets
$(117)
$45,100
$11
$45,111
(1,713)
1,837
(5)
0
(5)
0
(5)
$(122)
119
$45,219
(1,713)
1,837
(5)
0
5
124
5
5
$16
$45,235
Year ended March 31, 2014
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 ...........................
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 ...........
Year ended March 31, 2014
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 ...........................
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 ...........
139
SMFGNotes to Consolidated Financial StatementsSMFG 2014 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, 2014 and 2013, 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, 2014 and 2013, 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, 2014 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 26, 2014
Tokyo, Japan
140
SMFGSMFG 2014 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 ..........................................................................................
Net defined benefit asset .....................................................................................
Deferred tax assets ..............................................................................................
Customers’ liabilities for acceptances and guarantees .......................................
Reserve for possible loan losses ..........................................................................
Total assets ..........................................................................................................
Millions of yen
2014
2013
¥ 26,914,156
5,912,588
1,248,235
522,860
3,737,208
3,420,145
6,846,729
14,572
27,092,373
69,754,391
1,790,406
218,360
1,703,060
976,903
445,686
115,847
101,929
5,632,563
(623,876)
¥155,824,141
¥ 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
Millions of
U.S. dollars
2014
$ 261,607
57,471
12,133
5,082
36,326
33,244
66,551
142
263,340
678,017
17,403
2,122
16,554
9,496
4,332
1,126
991
54,749
(6,064)
$1,514,620
141
SMBCSMFG 2014 (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............................................................
Net defined benefit liability ...................................................................................
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 ............................................................
Remeasurements of defined benefit plans ...........................................................
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
2014
2013
Millions of
U.S. dollars
2014
¥108,516,404
4,113,650
1,708,801
5,328,427
2,374,051
4,740,484
5,101,073
451,658
302,500
4,906,764
699,329
3,145,635
55,272
4,244
—
14,625
814
2,025
14,858
774
402
30,739
38,276
5,632,563
147,183,378
1,770,996
2,717,397
2,468,427
(210,003)
6,746,818
938,235
(59,626)
35,675
6,779
(74,755)
846,308
157
1,047,479
8,640,763
¥155,824,141
¥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
$1,054,786
39,985
16,610
51,793
23,076
46,078
49,583
4,390
2,940
47,694
6,798
30,576
537
41
—
142
8
20
144
8
4
299
372
54,749
1,430,632
17,214
26,413
23,993
(2,041)
65,579
9,120
(580)
347
66
(727)
8,226
2
10,182
83,989
$1,514,620
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 ¥102.88 to US$1, the exchange rate prevailing at March 31, 2014.
142
SMBCSupplemental InformationSMFG 2014
Millions of yen
2014
2013
Millions of
U.S. dollars
2014
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 .......................................................................................
Gains on reversal of reserve for possible loan losses ..........................................
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:
¥1,606,106
1,126,214
344,851
7,749
7,266
37,798
6,260
75,965
2,393
778,343
189,085
225,360
136,457
170,871
3,108,619
296,861
144,704
26,734
4,105
3,486
89,421
28,409
144,131
—
93,907
1,195,499
—
86,281
1,816,681
1,291,937
¥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
Income taxes-current .......................................................................................
Income taxes-deferred .....................................................................................
Income before minority interests ........................................................................
Minority interests in net income ...........................................................................
Net income ..........................................................................................................
233,528
188,880
869,529
83,841
¥ 785,687
228,602
(122,120)
815,351
80,836
¥ 734,514
$15,611
10,947
3,352
75
71
367
61
738
23
7,566
1,838
2,191
1,326
1,661
30,216
2,886
1,407
260
40
34
869
276
1,401
—
913
11,620
—
839
17,658
12,558
2,270
1,836
8,452
815
$ 7,637
143
SMBCSupplemental InformationSMFG 2014 (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 ...............................
2014
¥ 869,529
304,763
182,873
(29,034)
18
155,374
(4,468)
1,174,292
1,055,195
119,096
2013
¥ 815,351
558,271
482,569
43
—
80,281
(4,622)
1,373,623
1,234,101
139,522
Millions of
U.S. dollars
2014
$ 8,452
2,962
1,778
(282)
0
1,510
(43)
11,414
10,257
1,158
Per share data:
Net income .......................................................................................................
Net income — diluted ......................................................................................
¥7,394.82
7,394.81
¥6,913.18
6,908.19
$71.88
71.88
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 ¥102.88 to US$1, the exchange rate prevailing at March 31, 2014.
Yen
U.S. dollars
144
SMBCSupplemental InformationSMFG 2014
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 ..........................................................................................
Prepaid pension cost ...........................................................................................
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 ...........................................................................................
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 (losses) 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
2014
2013
¥ 24,868,767
5,264,489
577,711
455,595
643,127
873,331
3,220,669
2,060
27,317,549
63,370,678
1,698,141
1,298,327
753,279
182,351
226,615
—
5,767,068
(472,548)
(80,785)
¥135,966,434
¥ 98,157,844
3,265,929
1,126,120
3,390,533
1,806,866
2,400,057
5,091,006
490,873
25,000
4,501,843
698,953
2,071,738
12,112
610
1,338
13,650
29,744
37,782
5,767,068
128,889,073
1,770,996
2,481,273
2,137,235
(210,003)
6,179,502
926,836
(53,158)
24,180
897,858
7,077,360
¥135,966,434
¥ 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
1,676,110
733,157
167,159
218,272
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
Millions of
U.S. dollars
2014
$ 241,726
51,171
5,615
4,428
6,251
8,489
31,305
20
265,528
615,967
16,506
12,620
7,322
1,772
2,203
—
56,056
(4,593)
(785)
$1,321,602
$ 954,100
31,745
10,946
32,956
17,563
23,329
49,485
4,771
243
43,758
6,794
20,137
118
6
13
133
289
367
56,056
1,252,810
17,214
24,118
20,774
(2,041)
60,065
9,009
(517)
235
8,727
68,792
$1,321,602
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 ¥102.88 to US$1, the exchange rate prevailing at March 31, 2014.
145
SMBCSupplemental InformationSMFG 2014
Millions of yen
2014
2013
Millions of
U.S. dollars
2014
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 .......................................................................................
Gains on reversal of reserve for possible loan losses ..........................................
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 ..................................................................
Other expenses ....................................................................................................
Total expenses .....................................................................................................
Income before income taxes ..............................................................................
Income taxes:
¥1,367,602
951,111
334,755
4,646
1,918
23,788
51,382
1,972
513,309
37,059
142,006
132,784
150,214
2,344,948
302,697
101,320
86,213
3,117
1,557
84,707
25,780
155,957
280
44,833
780,534
114,162
1,398,464
946,483
¥1,270,673
958,912
245,917
5,009
1,601
19,440
39,792
1,823
489,310
5,780
278,366
26,747
48,710
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
Income taxes-current .......................................................................................
Income taxes-deferred .....................................................................................
Net income ..........................................................................................................
182,869
158,358
¥ 605,255
209,704
(162,095)
¥ 617,791
$13,293
9,245
3,254
45
19
231
499
19
4,989
360
1,380
1,291
1,460
22,793
2,942
985
838
30
15
823
251
1,516
3
436
7,587
1,110
13,593
9,200
1,777
1,539
$ 5,883
Per share data:
Net income .......................................................................................................
Net income — diluted ......................................................................................
¥5,696.60
—
¥5,814.59
—
$55.37
—
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 ¥102.88 to US$1, the exchange rate prevailing at March 31, 2014.
Yen
U.S. dollars
146
SMBCSupplemental InformationSMFG 2014
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 ..................................................... ¥1,337,864
Interest expenses ..................................................
256,650
Net interest income ................................................... 1,081,214
Trust fees ...................................................................
2,472
Fees and commissions .........................................
953,323
Fees and commissions payments ........................
98,250
Net fees and commissions ........................................
855,072
Trading income......................................................
196,441
Trading losses .......................................................
13,067
Net trading income ....................................................
183,373
Other operating income ........................................
974,229
Other operating expenses.....................................
842,022
Net other operating income.......................................
132,207
2014
Overseas
operations Elimination
Total
¥568,440
165,058
403,382
—
170,874
30,644
140,229
46,359
17,851
28,508
230,382
146,747
83,634
(100,864)
(425)
—
(11,767)
(1,055)
(10,712)
(30,919)
(30,919)
¥(101,289) ¥1,805,015
320,844
1,484,170
2,472
1,112,429
127,840
984,589
211,881
—
— 211,881
1,203,500
988,380
215,120
(1,112)
(390)
(721)
Domestic
operations
¥1,297,908
274,444
1,023,463
1,871
896,691
108,673
788,018
229,721
69,493
160,228
1,084,654
837,374
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)
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 (2014, ¥1 million; 2013, ¥7 million) related to the management of money held in trust.
3. Inter-segment transactions are reported in the “Elimination” column.
Average Balance, Interest and Average Rate of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Millions of yen
Year ended March 31
Interest-earning assets .............................................. ¥ 85,744,061
50,859,655
25,598,818
273,758
34,087
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 ............
3,662,001
683,307
1,423,778
Interest-bearing liabilities .......................................... ¥102,794,497
79,070,243
5,385,616
1,497,244
1,115,757
3,132,130
196,192
5,784,828
1,049,438
5,265,783
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 ....................................................................
2014
Interest
¥1,337,864
903,500
316,444
1,582
45
7,293
3,210
43,019
¥ 256,650
44,986
5,756
1,221
1,126
3,494
329
89,013
1,240
105,977
Average rate
1.56%
1.78
1.24
0.58
0.13
0.20
0.47
3.02
0.25%
0.06
0.11
0.08
0.10
0.11
0.17
1.54
0.12
2.01
Average balance
¥ 95,457,643
51,071,487
36,951,823
303,572
30,138
3,731,493
389,585
1,434,859
¥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
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
Average rate
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
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 (2014, ¥12,500,991 million; 2013, ¥1,648,570
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 (2014, ¥23,058 million; 2013, ¥24,916 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2014, ¥23,058 million; 2013, ¥24,916 million) and corresponding
interest (2014, ¥1 million; 2013, ¥7 million).
147
SMFGSMFG 2014
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
¥30,993,810
17,432,627
2,543,975
1,195,387
491,481
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 ....................................................................
—
6,072,127
353,530
¥22,288,609
10,451,742
7,223,402
664,741
981,930
—
2,192,106
663,554
—
40,094
2014
Interest
¥568,440
411,318
44,396
16,769
7,772
—
35,413
17,526
¥165,058
60,606
33,278
2,281
3,047
—
6,276
11,401
—
1,672
Millions of yen
Average rate
1.83%
2.36
1.75
1.40
1.58
Average balance
¥25,635,638
14,830,669
2,569,373
1,141,432
285,240
—
0.58
4.96
0.74%
0.58
0.46
0.34
0.31
—
0.29
1.72
—
4.17
—
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
Average rate
2.06%
2.59
1.97
1.14
2.17
—
0.69
5.42
0.89%
0.59
0.62
0.53
0.44
—
0.36
2.33
—
5.15
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 (2014, ¥83,675 million; 2013, ¥85,807 million).
Total of Domestic and Overseas Operations
Millions of yen
Year ended March 31
Interest-earning assets .............................................. ¥114,688,959
66,783,840
27,798,204
1,469,146
456,907
Loans and bills discounted ...................................
Securities ..............................................................
Call loans and bills bought ....................................
Receivables under resale agreements ..................
Average balance
2014
Interest
¥1,805,015
1,249,216
343,905
18,351
7,749
Receivables under securities
borrowing transactions .......................................
Deposits with banks ..............................................
Lease receivables and investment assets ............
3,662,001
6,641,939
1,777,309
7,293
38,162
60,545
Interest-bearing liabilities .......................................... ¥123,314,389
89,392,487
12,609,018
2,161,985
2,029,025
3,132,130
2,388,298
5,279,349
1,049,438
4,912,978
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 ....................................................................
¥ 320,844
105,111
39,035
3,503
4,106
3,494
6,606
34,804
1,240
91,182
Average rate
1.57%
1.87
1.24
1.25
1.70
0.20
0.57
3.41
0.26%
0.12
0.31
0.16
0.20
0.11
0.28
0.66
0.12
1.86
Average balance
¥119,009,060
64,313,060
39,175,534
1,445,004
315,280
3,731,493
4,945,879
1,729,893
¥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
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
Average rate
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
Notes: 1. The figures above comprise totals for domestic and overseas operations after inter-segment 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 (2014, ¥12,574,142 million; 2013, ¥1,735,120
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 (2014, ¥23,058 million; 2013, ¥24,916 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2014, ¥23,058 million; 2013, ¥24,916 million) and corresponding
interest (2014, ¥1 million; 2013, ¥7 million).
148
SMFGIncome Analysis (Consolidated)SMFG 2014
Fees and Commissions
Millions of yen
2014
Domestic
Year ended March 31
operations
Fees and commissions .............................................. ¥953,323
22,988
116,936
125,814
17,968
5,830
63,818
236,229
157,909
Deposits and loans ...............................................
Remittances and transfers ....................................
Securities-related business ...................................
Agency ..................................................................
Safe deposits ........................................................
Guarantees ............................................................
Credit card business .............................................
Investment trusts ..................................................
Overseas
operations Elimination
¥170,874
97,728
14,314
28,626
—
2
13,029
0
1,516
¥(11,767)
(3,823)
(10)
(4,440)
—
—
(161)
—
—
Total
¥1,112,429
116,893
131,239
150,000
17,968
5,833
76,687
236,230
159,425
Domestic
operations
¥896,691
23,348
118,486
75,331
18,172
5,989
67,379
225,444
161,394
2013
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
Fees and commissions payments ............................. ¥ 98,250
28,658
Remittances and transfers ....................................
¥ 30,644
8,135
¥ (1,055)
(95)
¥ 127,840
36,698
¥108,673
27,923
¥ 23,558
16,381
¥ (274)
(59)
¥ 131,957
44,244
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. Inter-segment transactions are reported in the “Elimination” column.
Trading Income
2014
2013
Millions of yen
Domestic
Year ended March 31
operations
Trading income .......................................................... ¥196,441
172,918
Gains on trading securities ...................................
Overseas
operations Elimination
¥46,359
—
¥(30,919)
(11,016)
Total
¥211,881
161,901
Domestic
operations
¥229,721
210,551
Overseas
operations Elimination
¥34,767
—
¥(57,747)
(8,463)
Total
¥206,741
202,087
Gains on securities related to
trading transactions ............................................
Gains on trading-related financial derivatives .......
Others ...................................................................
20,396
2,915
210
—
46,359
—
(118)
(19,784)
—
20,277
29,491
210
Trading losses............................................................
Losses on trading securities .................................
13,067
17,851
— 11,016
(30,919)
(11,016)
Losses on securities related to
trading transactions ............................................
Losses on trading-related financial derivatives .....
Others ...................................................................
—
13,067
—
118
6,716
—
(118)
(19,784)
—
—
—
—
—
—
4,225
14,577
367
69,493
—
—
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
—
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. Inter-segment transactions are reported in the “Elimination” column.
149
SMFGIncome Analysis (Consolidated)SMFG 2014
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
2014
2013
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 ......................................................................................................
¥ 53,687,039
24,124,219
5,007,436
82,818,695
5,458,722
¥ 88,277,417
¥ 8,226,849
3,200,420
85,958
11,513,229
8,254,817
¥ 19,768,047
¥108,045,465
¥ 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
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
2014
2013
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 .................................................................................................................
¥ 5,940,556
162,373
895,433
4,593,900
4,288,114
2,610,429
7,328,682
4,282,649
1,169,119
19,878,636
¥51,149,896
¥ 78,915
1,062,245
13,863,631
2,072,999
¥17,077,791
¥68,227,688
11.62%
0.32
1.75
8.98
8.38
5.10
14.33
8.37
2.29
38.86
100.00%
0.46%
6.22
81.18
12.14
100.00%
—
¥ 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%
—
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.
150
SMFGSMFG 2014
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 ..............................................................................
2014
¥473,159
273,629
747
¥747,536
¥511,043
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
2014
¥ 39,601
877,325
14,679
389,089
¥1,320,695
¥ 454,610
Millions of yen
Millions of yen
2013
¥539,305
389,555
5
¥928,866
¥653,146
2013
¥ 55,479
1,130,562
16,044
484,963
¥1,687,049
¥ 585,789
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
2014
¥ 203,581
762,276
407,473
1,373,330
77,398,976
¥78,772,307
¥ 511,043
Millions of yen
2013
¥ 248,161
973,057
505,130
1,726,349
74,273,608
¥75,999,958
¥ 653,146
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
151
SMFGAssets and Liabilities (Consolidated)SMFG 2014
Securities
Year-End Balance
March 31
Domestic operations:
Millions of yen
2014
2013
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 .................................................................................................................
¥14,242,395
227,128
2,956,229
3,342,375
3,354,287
¥24,122,416
¥ —
—
—
—
2,981,039
¥ 2,981,039
¥ —
—
—
49,325
—
¥ 49,325
¥27,152,781
¥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
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 ........................................................... ¥6,350,237
Trading securities .................................................. 3,276,722
Derivatives of trading securities ............................
6,462
Securities related to trading transactions .............
—
Derivatives of securities related to
trading transactions ............................................
5,912
Trading-related financial derivatives ..................... 2,944,158
Other trading assets..............................................
116,981
2014
2013
Millions of yen
Overseas
operations Elimination
¥(60,025)
¥667,207
73,520
—
—
Total
¥6,957,419
— 3,350,242
6,462
—
—
—
Domestic
operations
¥7,101,829
3,185,210
3,614
—
¥723,986
35,647
—
—
Overseas
operations Elimination
¥(60,261)
Total
¥7,765,554
— 3,220,858
3,614
—
—
—
173
593,513
—
—
(60,025)
—
6,086
3,477,646
116,981
26,022
3,699,030
187,952
22
688,317
—
—
(60,261)
—
26,044
4,327,085
187,952
Trading liabilities ........................................................ ¥4,295,896
Trading securities sold for short sales .................. 1,857,197
Derivatives of trading securities ............................
7,547
¥544,098
8,045
—
¥(60,025)
¥4,779,969
— 1,865,242
7,547
—
¥5,454,843
1,906,428
11,010
¥725,049
3,700
716
¥(60,261)
¥6,119,631
— 1,910,129
11,727
—
Securities related to trading transactions
sold for short sales ..............................................
—
—
—
—
—
—
—
—
Derivatives of securities related to
trading transactions ............................................
7,332
Trading-related financial derivatives ..................... 2,423,819
Other trading liabilities ..........................................
—
245
535,807
—
—
(60,025)
—
7,578
2,899,601
—
29,372
3,508,033
—
24
720,607
—
—
(60,261)
—
29,396
4,168,379
—
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. Inter-segment transactions are reported in the “Elimination” column.
152
SMFGAssets and Liabilities (Consolidated)SMFG 2014
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
June 22, 2009*1 ....................................... 219,700,000
July 27, 2009*2 ........................................
8,931,300
January 27, 2010*3 .................................. 340,000,000
January 28, 2010*4 ..................................
36,343,848
February 8, 2010*5 ...................................
(33,400)
February 10, 2010*6 .................................
20,000,000
April 1, 2011*7 ..........................................
(70,001)
Balances
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
1,834,572
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
1,056,050
1,072,868
1,532,345
1,532,345
1,532,345
1,559,374
1,559,374
Remarks:
*1 Public offering: Common stock: 219,700,000 shares
Issue price: ¥3,766 Capitalization: ¥1,883
*2 Allotment to third parties: Common stock: 8,931,300 shares
*3 Public offering: Common stock: 340,000,000 shares
Issue price: ¥2,702.81 Capitalization: ¥1,351.405
Issue price: ¥3,766 Capitalization: ¥1,883
*4 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)
*5 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)
*6 Allotment to third parties: Common stock: 20,000,000 shares
Issue price: ¥2,702.81 Capitalization: ¥1,351.405
*7 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, 2014
Common stock ...............................................................................................................................................................
Total ................................................................................................................................................................................
Number of shares issued
1,414,055,625
1,414,055,625
153
SMFGSMFG 2014 Stock Exchange Listings
Tokyo Stock 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, 2014
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
8
341
92
7,332
1,089
218
257,640
266,720
—
Number of
units
4,784
3,799,792
643,459
1,345,937
6,894,192
2,363
1,427,269
14,117,796
2,276,025
Percentage of
total
0.03%
26.92
4.56
9.53
48.83
0.02
10.11
100.00%
—
Notes: 1. Of 3,960,805 shares in treasury stock, 39,608 units are included in “Individuals and others” and the remaining 5 shares are included in “Fractional shares.”
2. “Other institutions” and “Fractional shares” includes 29 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.
Principal Shareholders
March 31, 2014
Japan Trustee Services Bank, Ltd. (Trust Account) ......................................................................................
The Master Trust Bank of Japan, Ltd. (Trust Account) .................................................................................
Sumitomo Mitsui Banking Corporation ........................................................................................................
THE BANK OF NEW YORK MELLON SA/NV 10 * .......................................................................................
NATSCUMCO** ............................................................................................................................................
STATE STREET BANK AND TRUST COMPANY***.......................................................................................
STATE STREET BANK AND TRUST COMPANY 505225**** ........................................................................
Japan Trustee Services Bank, Ltd. (Trust Account 9) ...................................................................................
Japan Trustee Services Bank, Ltd. (Trust Account 1) ...................................................................................
Japan Trustee Services Bank, Ltd. (Trust Account 6) ...................................................................................
Total ..............................................................................................................................................................
Number of
shares
64,533,318
61,953,800
42,820,924
37,756,367
24,517,895
23,763,635
21,025,452
16,799,000
15,564,200
15,561,900
324,296,491
Percentage of
shares outstanding
4.56%
4.38
3.02
2.67
1.73
1.68
1.48
1.18
1.10
1.10
22.93%
* Standing agent: The Bank of Tokyo-Mitsubishi UFJ, Ltd.
** Standing agent: Sumitomo Mitsui Banking Corporation
*** Standing agent: The HongKong and Shanghai Banking Corporation Limited’s Tokyo Branch
**** Standing agent: Mizuho Bank, Ltd.
Note: 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.
154
SMFGCapital (Nonconsolidated)SMFG 2014
Stock Options
March 31
Number of shares granted........................................................................................................
Type of stock ............................................................................................................................
Issue price ................................................................................................................................
Amount capitalized when shares are issued ............................................................................
Exercise period of stock options ..............................................................................................
2014
98,400 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 ..............................................................................................
2014
261,800 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 ..............................................................................................
2014
277,100 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
March 31
Number of shares granted........................................................................................................
Type of stock ............................................................................................................................
Issue price ................................................................................................................................
Amount capitalized when shares are issued ............................................................................
Exercise period of stock options ..............................................................................................
2014
115,500 shares
Common stock
¥4,160 per share
¥2,080 per share
From August 14, 2013 to August 13, 2043
Date of resolution: Meeting of the Board of Directors held on July 29, 2013
Common Stock Price Range
Stock Price Performance
Year ended March 31
High .......................................................................................
Low ........................................................................................
2014
¥5,470
3,545
2013
¥4,255
2,231
Note: Stock prices of common shares as quoted on the Tokyo Stock Exchange (First Section).
Yen
2012
¥2,933
2,003
2011
¥3,355
2,235
2010
¥4,520
2,591
Six-Month Performance
Yen
High ..............................................................
Low ...............................................................
October 2013
¥4,945
4,605
November 2013
¥5,270
4,655
December 2013
¥5,470
4,945
January 2014
¥5,468
4,774
February 2014
¥4,910
4,495
March 2014
¥4,713
4,061
Note: Stock prices of common shares as quoted on the Tokyo Stock Exchange (First Section).
155
SMFGCapital (Nonconsolidated)SMFG 2014 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 ..................................................... ¥1,154,829
Interest expenses ..................................................
227,173
Net interest income ...................................................
927,655
Trust fees ...................................................................
2,393
Fees and commissions .........................................
619,047
Fees and commissions payments ........................
114,542
Net fees and commissions ........................................
504,505
Trading income......................................................
173,645
Trading losses .......................................................
13,067
Net trading income ....................................................
160,577
Other operating income ........................................
190,982
Other operating expenses.....................................
88,267
Net other operating income.......................................
102,714
Millions of yen
2014
Overseas
operations Elimination
¥(88,160)
¥539,437
(87,732)
157,418
(427)
382,018
—
—
(11,577)
170,873
(1,055)
30,644
(10,522)
140,228
(30,919)
46,359
(30,919)
17,851
28,508
—
(233)
34,612
(229)
5,869
(3)
28,742
Total
¥1,606,106
296,859
1,309,246
2,393
778,343
144,131
634,211
189,085
—
189,085
225,360
93,907
131,453
Domestic
operations
¥1,096,908
237,412
859,495
1,823
576,012
122,477
453,535
198,848
69,493
129,354
308,105
84,618
223,486
2013
Overseas
operations Elimination
¥(105,774)
¥496,673
(105,459)
149,238
(315)
347,434
—
—
(2,831)
146,459
(272)
23,558
(2,558)
122,900
(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
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 (2014, ¥1 million; 2013, ¥7 million) related to the management of money held in trust.
3. Inter-segment transactions are reported in the “Elimination” column.
Average Balance, Interest and Average Rate of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Millions of yen
Year ended March 31
Average balance
Interest-earning assets ................................... ¥ 85,178,209
51,910,367
25,569,649
273,799
34,087
Loans and bills discounted .........................
Securities ....................................................
Call loans and bills bought .........................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Deposits with banks ...................................
2014
Interest
¥1,154,829
759,725
317,429
1,582
45
Average rate
1.36%
1.46
1.24
0.58
0.13
Average balance
¥94,161,776
51,558,441
36,757,204
303,408
30,138
2013
Interest
¥1,096,908
814,057
218,720
1,519
46
Average rate
1.16%
1.58
0.60
0.50
0.16
3,623,081
625,160
7,266
3,068
0.20
0.49
3,689,947
330,176
6,527
1,359
0.18
0.41
Interest-bearing liabilities ............................... ¥100,137,796
79,237,323
5,554,290
1,497,107
1,114,596
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 .........................................................
3,122,796
196,192
4,194,658
215,910
4,699,431
¥ 227,173
45,019
5,864
1,221
1,125
3,486
329
78,827
231
87,518
0.23%
0.06
0.11
0.08
0.10
0.11
0.17
1.88
0.11
1.86
¥98,618,767
76,183,139
6,435,488
1,233,579
1,068,990
¥ 237,412
47,445
9,125
1,039
1,496
3,870,048
—
5,035,564
186,527
4,366,856
6,252
—
87,374
218
80,734
0.24%
0.06
0.14
0.08
0.14
0.16
—
1.74
0.12
1.85
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 (2014, ¥12,410,570 million; 2013, ¥1,598,185
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 (2014, ¥14,831 million; 2013, ¥17,906 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2014, ¥14,831 million; 2013, ¥17,906 million) and corresponding
interest (2014, ¥1 million; 2013, ¥7 million).
156
SMBCSMFG 2014
Overseas Operations
Year ended March 31
Average balance
Interest-earning assets ................................... ¥30,258,278
17,300,619
2,138,265
1,195,387
491,481
Loans and bills discounted .........................
Securities ....................................................
Call loans and bills bought .........................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Deposits with banks ...................................
—
6,051,947
—
35,174
2014
Interest
¥539,437
413,735
27,889
16,769
7,772
Millions of yen
Average rate
1.78%
2.39
1.30
1.40
1.58
Average balance
¥24,914,597
14,696,165
2,176,455
1,141,432
285,240
2013
Interest
¥496,673
382,465
34,073
13,038
6,193
Average rate
1.99%
2.60
1.57
1.14
2.17
—
0.58
0.72%
0.58
0.46
0.34
0.31
—
4,665,188
—
32,078
¥17,503,492
8,410,034
5,264,852
659,919
1,081,172
¥149,238
49,448
32,638
3,508
4,805
¥157,418
61,036
33,278
2,283
3,047
Interest-bearing liabilities ............................... ¥21,898,497
10,494,439
7,223,402
665,985
981,930
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 .........................................................
—
2,192,106
229,501
—
40,094
Notes: 1. Overseas operations comprise the operations of SMBC’s overseas branches and its overseas consolidated subsidiaries.
—
1,580,650
410,128
—
54,832
—
6,276
3,381
—
1,672
—
0.29
1.47
—
4.17
—
5,703
8,623
—
2,825
—
0.69
0.85%
0.59
0.62
0.53
0.44
—
0.36
2.10
—
5.15
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 (2014, ¥82,018 million; 2013, ¥85,149 million).
Total of Domestic and Overseas Operations
Year ended March 31
Average balance
Interest-earning assets ................................... ¥114,068,822
68,042,417
27,707,915
1,469,187
456,907
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
2014
Interest
¥1,606,106
1,107,862
344,851
18,351
7,749
Average rate
1.41%
1.63
1.24
1.25
1.70
Average balance
¥117,570,430
64,889,690
38,933,660
1,444,840
315,280
2013
Interest
¥1,487,807
1,119,939
252,439
14,557
6,240
Average rate
1.27%
1.73
0.65
1.01
1.98
3,623,081
6,560,395
7,266
37,798
0.20
0.58
3,689,947
4,870,733
6,527
32,978
0.18
0.68
Interest-bearing liabilities ............................... ¥120,671,195
89,612,608
12,777,692
2,163,092
2,027,865
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 .........................................................
3,122,796
2,388,298
3,255,502
215,910
4,739,525
¥ 296,859
105,561
39,142
3,505
4,105
3,486
6,606
16,622
231
89,190
0.25%
0.12
0.31
0.16
0.20
0.11
0.28
0.51
0.11
1.88
¥114,579,932
84,429,208
11,700,340
1,893,498
2,150,064
¥ 281,192
96,394
41,763
4,547
6,300
3,870,048
1,580,650
4,080,888
186,527
4,421,689
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
Notes: 1. The figures above comprise totals for domestic and overseas operations after inter-segment 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 (2014, ¥12,492,218 million; 2013, ¥1,682,995
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 (2014, ¥14,831 million; 2013, ¥17,906 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2014, ¥14,831 million; 2013, ¥17,906 million) and corresponding
interest (2014, ¥1 million; 2013, ¥7 million).
157
SMBCIncome Analysis (Consolidated)SMFG 2014
Fees and Commissions
2014
2013
Millions of yen
Domestic
Year ended March 31
operations
Fees and commissions .............................................. ¥619,047
23,013
118,482
105,758
16,596
5,830
36,965
6,745
144,090
Deposits and loans ...............................................
Remittances and transfers ....................................
Securities-related business ...................................
Agency ..................................................................
Safe deposits ........................................................
Guarantees ............................................................
Credit card business .............................................
Investment trusts ..................................................
Overseas
operations Elimination
¥(11,577)
¥170,873
(3,810)
97,728
14,314
(1)
(4,440)
28,626
—
—
2
—
(155)
13,029
—
—
1,516
—
Total
¥778,343
116,931
132,795
129,944
16,596
5,833
49,839
6,745
145,607
Domestic
operations
¥576,012
23,372
118,500
63,898
16,643
5,989
36,971
6,434
144,757
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
Fees and commissions payments ............................. ¥114,542
28,658
Remittances and transfers ....................................
¥ 30,644
8,135
¥ (1,055)
(95)
¥144,131
36,698
¥122,477
27,923
¥ 23,558
16,381
¥ (272)
(59)
¥145,763
44,244
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. Inter-segment transactions are reported in the “Elimination” column.
Trading Income
2014
2013
Millions of yen
Domestic
Year ended March 31
operations
Trading income .......................................................... ¥173,645
150,121
Gains on trading securities ...................................
Overseas
operations Elimination
¥(30,919)
— (11,016)
¥46,359
Total
¥189,085
139,105
Domestic
operations
¥198,848
179,677
Overseas
operations Elimination
¥(57,747)
(8,463)
¥34,767
—
Total
¥175,868
171,214
Gains on securities related to
trading transactions ............................................
Gains on trading-related financial derivatives .......
Others ...................................................................
20,396
2,915
210
—
46,359
—
(118)
(19,784)
—
20,277
29,491
210
4,225
14,577
367
60
34,707
—
—
(49,284)
—
4,286
—
367
Trading losses............................................................ ¥ 13,067
¥17,851
— 11,016
¥(30,919)
(11,016)
¥ — ¥ 69,493
—
—
¥28,378
8,463
¥(57,747)
(8,463)
¥ 40,124
—
Losses on trading securities .................................
Losses on securities related to
trading transactions ............................................
Losses on trading-related financial derivatives .....
Others ...................................................................
—
13,067
—
118
6,716
—
(118)
(19,784)
—
—
—
—
—
69,493
—
—
19,914
—
—
(49,284)
—
—
40,124
—
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. Inter-segment transactions are reported in the “Elimination” column.
158
SMBCIncome Analysis (Consolidated)SMFG 2014
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
2014
2013
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 ......................................................................................................
¥ 53,827,765
24,133,089
5,010,342
82,971,197
5,718,522
¥ 88,689,719
¥ 8,274,686
3,211,221
85,958
11,571,866
8,254,817
¥ 19,826,684
¥108,516,404
¥ 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
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
2014
2013
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 .......................................................................................................
¥ 5,934,989
161,015
894,811
4,573,834
4,267,679
5,018,049
7,440,672
4,251,649
1,169,119
18,643,774
¥52,355,596
11.34%
0.31
1.71
8.74
8.15
9.58
14.21
8.12
2.23
35.61
100.00%
¥ 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%
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
¥ 62,765
619,212
11,783,976
1,445,071
¥13,911,026
¥66,665,737
¥ 78,915
1,092,827
14,202,756
2,024,296
¥17,398,795
¥69,754,391
0.45%
6.28
81.63
11.64
100.00%
—
0.45%
4.45
84.71
10.39
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.
159
SMBCSMFG 2014
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
2014
¥ 38,949
788,485
7,546
331,782
¥1,166,764
¥ 422,009
Millions of yen
2013
¥ 54,846
1,006,497
9,953
422,509
¥1,493,807
¥ 549,257
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
2014
2013
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
¥14,242,373
227,128
2,939,730
3,434,174
3,267,922
¥24,111,328
Overseas operations:
¥26,994,415
355,883
3,005,080
3,097,093
5,367,925
¥38,820,398
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
¥ —
—
—
—
2,981,044
¥ 2,981,044
¥27,092,373
¥ —
—
—
—
2,473,607
¥ 2,473,607
¥41,294,005
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 ........................................................... ¥6,238,736
Trading securities .................................................. 3,163,102
Derivatives of trading securities ............................
6,437
Securities related to trading transactions .............
—
Derivatives of securities related to
trading transactions ............................................
5,912
Trading-related financial derivatives ..................... 2,946,302
Other trading assets..............................................
116,981
2014
2013
Millions of yen
Overseas
operations Elimination
¥(60,025)
¥668,018
73,520
—
—
Total
¥6,846,729
— 3,236,622
6,437
—
—
—
Domestic
operations
¥6,955,688
3,035,233
3,420
—
¥723,986
35,647
—
—
Overseas
operations Elimination
¥(60,261)
Total
¥7,619,413
— 3,070,881
3,420
—
—
—
173
594,324
—
—
(60,025)
—
6,086
3,480,601
116,981
26,022
3,703,059
187,952
22
688,317
—
—
(60,261)
—
26,044
4,331,114
187,952
Trading liabilities ........................................................ ¥4,255,600
Trading securities sold for short sales .................. 1,815,126
Derivatives of trading securities ............................
7,178
¥544,909
8,405
—
¥(60,025)
¥4,740,484
— 1,823,171
7,178
—
¥5,419,265
1,866,854
10,977
¥725,049
3,700
716
¥(60,261)
¥6,084,053
— 1,870,555
11,694
—
Securities related to trading transactions
sold for short sales ..............................................
—
—
—
—
—
—
—
—
Derivatives of securities related to
trading transactions ............................................
7,332
Trading-related financial derivatives ..................... 2,425,963
Other trading liabilities ..........................................
—
245
536,618
—
—
(60,025)
—
7,578
2,902,555
—
29,372
3,512,062
—
24
720,607
—
—
(60,261)
—
29,396
4,172,408
—
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. Inter-segment transactions are reported in the “Elimination” column.
160
SMBCAssets and Liabilities (Consolidated)SMFG 2014
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
Total
¥1,367,602
[22,941]
302,695
[22,941]
1,064,906
1,972
513,309
155,957
357,351
37,059
280
36,779
142,006
44,833
97,172
¥1,558,184
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 ........................................... ¥ 948,945
2014
International
operations
¥441,597
Interest expenses .......................................
68,297
257,338
Domestic
operations
¥ 897,934
2013
International
operations
¥395,284
84,297
237,718
Net interest income ........................................
880,647
Trust fees ........................................................
1,945
Fees and commissions ...............................
350,020
Fees and commissions payments ..............
119,579
Net fees and commissions .............................
230,441
Trading income ...........................................
206
Trading losses .............................................
280
Net trading income .........................................
(73)
Other operating income ..............................
24,886
Other operating expenses ..........................
25,839
Net other operating income............................
(952)
Gross banking profit ....................................... ¥1,112,008
Gross banking profit rate (%) .........................
Notes: 1. Domestic operations include yen-denominated transactions by domestic branches, while international operations include foreign-currency-denominated
813,636
1,800
350,989
117,753
233,235
1,443
—
1,443
65,875
17,080
48,795
¥1,098,912
157,565
22
138,321
27,818
110,503
4,336
9,562
(5,225)
212,490
34,174
178,316
¥441,182
184,258
27
163,288
36,377
126,910
36,852
—
36,852
117,475
19,349
98,125
¥446,175
1.53%
1.55%
1.42%
1.35%
1.66%
1.46%
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 (2014, ¥1 million; 2013, ¥7 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. The figures in the total column of “Other operating income” and “Other operating expenses” are less than the combined total for “Domestic operations”
and “International operations” (2014, ¥355 million; 2013, ¥— million) due to the presentation of net amounts for gains (losses) from derivative transactions.
5. Gross banking profit rate = Gross banking profit / Average balance of interest-earning assets ✕ 100
Average Balance, Interest and Average Rate of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Millions of yen
Year ended March 31
Average balance
Interest-earning assets ................................... ¥72,442,213
[3,577,815]
45,370,735
22,616,380
69,790
—
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
420,070
28,469
6,699
Interest-bearing liabilities ............................... ¥80,855,505
68,817,306
5,847,365
973,696
37,359
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
569,069
1,583,166
23,819
2,272,425
2014
Interest
¥948,945
[22,941]
637,488
268,083
216
—
1,023
764
1
¥ 68,297
26,409
6,234
490
35
355
7,123
16
26,548
Average rate
1.30%
1.40
1.18
0.31
—
0.24
2.68
0.01
0.08%
0.03
0.10
0.05
0.09
0.06
0.44
0.07
1.16
Average balance
¥80,951,335
[2,554,901]
44,448,446
33,051,536
48,578
—
453,540
22,164
6,356
¥79,485,870
66,400,621
6,682,323
975,392
54,020
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
Average rate
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
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2014, ¥11,857,804 million; 2013, ¥1,460,002
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 (2014, ¥2,269 million; 2013, ¥7,026 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2014, ¥2,269 million; 2013, ¥7,026 million) and corresponding inter-
est (2014, ¥1 million; 2013, ¥7 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.
161
SMBCSMFG 2014
International Operations
Year ended March 31
Average balance
Interest-earning assets ................................... ¥31,405,213
16,584,726
5,710,389
390,688
332,774
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
197,496
—
5,670,327
Interest-bearing liabilities ............................... ¥30,729,027
[3,577,815]
11,261,215
6,983,225
594,332
1,321,602
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Bonds .........................................................
2014
Interest
¥441,597
307,966
66,671
4,675
4,646
895
—
23,786
¥257,338
[22,941]
36,375
32,301
1,879
3,081
Millions of yen
Average rate
1.40%
1.85
1.16
1.19
1.39
Average balance
¥26,563,501
13,720,874
6,209,456
426,423
252,039
0.45
—
0.41
0.83%
0.32
0.46
0.31
0.23
107,735
—
4,063,289
¥25,239,631
[2,554,901]
8,906,133
4,983,840
543,160
1,346,096
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
Average rate
1.48%
1.99
1.01
0.88
1.98
0.46
—
0.47
0.94%
0.34
0.62
0.41
0.39
1,201
71,238
58,142
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2014, ¥60,515 million; 2013, ¥66,076 million).
2. Figures in brackets [ ] indicate the average balances of interdepartmental lending and borrowing activities between domestic and international operations
772,910
1,970,189
2,101,155
1,684,650
1,920,820
1,470,467
3,996
81,060
44,244
0.15
3.61
2.76
0.23
4.22
3.00
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 ................................... ¥100,269,611
61,955,462
28,326,769
460,479
332,774
Loans and bills discounted .........................
Securities ....................................................
Call loans ....................................................
Receivables under resale agreements ........
Receivables under securities
borrowing transactions .............................
Bills bought .................................................
Deposits with banks ...................................
617,566
28,469
5,677,026
1,918
764
23,788
Interest-bearing liabilities ............................... ¥108,006,718
80,078,521
12,830,590
1,568,029
1,358,961
Deposits......................................................
Negotiable certificates of deposit ...............
Call money ..................................................
Payables under repurchase agreements ....
Payables under securities
lending transactions .................................
Borrowed money ........................................
Short-term bonds .......................................
Bonds .........................................................
1,341,979
3,553,356
23,819
4,373,580
1,557
78,361
16
84,690
¥ 302,695
62,784
38,536
2,370
3,117
Millions of yen
2014
Interest
¥1,367,602
945,454
334,755
4,892
4,646
Average rate
1.36%
1.52
1.18
1.06
1.39
Average balance
¥104,959,935
58,169,321
39,260,992
475,002
252,039
2013
Interest
¥1,270,673
954,116
245,917
4,015
5,009
Average rate
1.21%
1.64
0.62
0.84
1.98
0.31
2.68
0.41
0.28%
0.07
0.30
0.15
0.22
0.11
2.20
0.07
1.93
561,276
22,164
4,069,646
1,601
780
19,440
¥102,170,601
75,306,754
11,666,164
1,518,553
1,400,116
¥ 299,470
60,491
41,030
2,844
5,311
2,441,087
3,260,903
18,652
4,157,351
4,688
89,147
14
78,885
0.28
3.52
0.47
0.29%
0.08
0.35
0.18
0.37
0.19
2.73
0.08
1.89
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2014, ¥11,918,319 million; 2013, ¥1,526,078
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 (2014, ¥2,269 million; 2013, ¥7,026 million). “Interest-bearing liabilities” are shown
after deduction of amounts equivalent to the average balance of money held in trust (2014, ¥2,269 million; 2013, ¥7,026 million) and corresponding inter-
est (2014, ¥1 million; 2013, ¥7 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.
162
SMBCIncome Analysis (Nonconsolidated)SMFG 2014
Breakdown of Interest Income and Interest Expenses
Domestic 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 .........................................................
International Operations
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)
¥(94,385)
12,958
(57,690)
65
—
(81)
169
0
¥ 1,157
927
(1,107)
(1)
(16)
(147)
1,093
3
(5,031)
Volume-related
increase
(decrease)
¥68,080
53,179
(5,079)
(315)
1,127
406
6,741
¥45,970
7,607
9,248
161
(93)
(1,707)
1,785
17,452
Total of Domestic and International Operations
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)
¥(56,782)
57,777
(68,488)
(122)
1,127
168
169
6,735
¥ 16,356
3,741
3,497
74
(151)
(1,666)
6,449
3
4,163
2014
Rate-related
increase
(decrease)
¥145,396
(55,726)
143,049
(99)
—
3
(185)
(0)
¥ (17,157)
(3,972)
(2,347)
(96)
(3)
(188)
(2,057)
(1)
(3,060)
2014
Rate-related
increase
(decrease)
¥(21,767)
(19,073)
8,556
1,225
(1,490)
(11)
(2,393)
¥(26,350)
(2,268)
(8,287)
(538)
(2,080)
(1,087)
(11,607)
(3,554)
2014
Rate-related
increase
(decrease)
¥153,710
(66,439)
157,325
999
(1,490)
149
(185)
(2,387)
¥ (13,131)
(1,448)
(5,991)
(548)
(2,042)
(1,465)
(17,235)
(1)
1,642
Note: Volume/rate variance is prorated according to changes in volume and rate.
Net
increase
(decrease)
¥ 51,011
(42,767)
85,359
(33)
—
(78)
(16)
0
¥(15,999)
(3,045)
(3,455)
(97)
(20)
(336)
(963)
1
(8,092)
Volume-related
increase
(decrease)
¥(13,323)
(29,125)
1,532
(99)
—
2013
Rate-related
increase
(decrease)
¥(37,322)
(18,301)
(517)
14
—
240
32
(427)
¥ (2,728)
669
(348)
(108)
18
(260)
(8,356)
(19)
(841)
(289)
(244)
(545)
¥(12,304)
(5,921)
(727)
(49)
(0)
111
4,615
(3)
(4,021)
Millions of yen
Net
increase
(decrease)
¥46,313
34,105
3,477
910
(362)
395
4,347
¥19,620
5,338
961
(376)
(2,174)
(2,795)
(9,822)
13,897
Volume-related
increase
(decrease)
¥95,072
67,764
15,876
517
1,693
2013
Rate-related
increase
(decrease)
¥ (9,098)
(3,623)
2,395
(1,237)
(410)
343
3,236
¥53,431
807
14,311
655
2,739
600
9,837
11,962
(23)
(1,448)
¥(17,395)
(3,399)
(3,104)
(326)
504
(1,081)
(5,678)
1,291
Millions of yen
Net
increase
(decrease)
¥96,928
(8,662)
88,837
876
(362)
317
(16)
4,347
¥ 3,224
2,293
(2,494)
(474)
(2,194)
(3,131)
(10,786)
1
5,805
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)
¥(50,646)
(47,427)
1,014
(84)
—
(48)
(212)
(972)
¥(15,032)
(5,251)
(1,075)
(158)
17
(148)
(3,741)
(22)
(4,862)
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
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
163
SMBCIncome Analysis (Nonconsolidated)SMFG 2014 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
¥350,020
11,780
90,852
11,893
12,767
5,404
17,871
2014
International
operations
¥163,288
87,990
31,316
2,287
—
—
19,599
Fees and commissions payments ..................
Remittances and transfers .........................
¥119,579
22,037
¥ 36,377
11,739
Millions of yen
Total
¥513,309
99,771
122,168
14,181
12,767
5,404
37,471
¥155,957
33,777
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
¥117,753
21,924
¥ 27,818
19,238
Total
¥489,310
79,521
120,230
13,226
12,501
5,554
36,733
¥145,572
41,162
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
¥206
—
2014
International
operations
¥36,852
—
Total
¥37,059
—
Domestic
operations
¥1,443
1,125
2013
International
operations
¥4,336
—
Total
¥5,780
1,125
—
—
206
¥280
280
—
—
—
20,277
20,277
16,570
3
¥ —
—
—
—
—
16,570
210
¥ 280
280
—
—
—
—
—
317
¥ —
—
—
—
—
4,286
4,286
—
49
¥9,562
—
—
9,562
—
—
367
¥9,562
—
—
9,562
—
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 (losses) on bonds .............................
Gains (losses) on derivatives ......................
Gains on foreign exchange transactions .....
General and Administrative Expenses
Millions of yen
Domestic
operations
¥ (952)
(4,862)
(2,984)
—
2014
International
operations
¥98,125
5,596
355
90,117
Total
¥97,172
734
(2,629)
90,117
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
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 .................................................................................................................
2014
¥242,163
8,651
37,597
81,666
64,188
4,179
5,275
5,524
4,968
7,248
7,171
37,368
47,202
192,538
¥745,745
Millions of yen
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
164
SMBCIncome Analysis (Nonconsolidated)SMFG 2014 Deposits (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Domestic operations:
Millions of yen
2014
2013
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
¥50,668,662
20,165,417
1,231,639
72,065,720
6,009,098
¥78,074,818
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
¥ 6,171,074
2,184,444
3,716,100
12,071,618
8,011,407
¥20,083,026
¥98,157,844
2. Fixed-term deposits = Time deposits + Installment savings
64.9%
25.8
1.6
92.3
7.7
100.0%
30.7%
10.9
18.5
60.1
39.9
100.0%
—
¥48,253,598
21,222,265
663,174
70,139,039
5,930,739
¥76,069,778
¥ 4,922,541
1,724,955
3,219,902
9,867,399
5,991,159
¥15,858,558
¥91,928,337
63.4%
27.9
0.9
92.2
7.8
100.0%
31.0%
10.9
20.3
62.2
37.8
100.0%
—
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2014
2013
Liquid deposits ............................................................................................
Fixed-term deposits ....................................................................................
Others ..........................................................................................................
Subtotal .......................................................................................................
Negotiable certificates of deposit ................................................................
Total .............................................................................................................
¥47,384,674
20,929,837
502,794
68,817,306
5,847,365
¥74,664,671
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
¥ 5,941,383
1,878,532
3,441,299
11,261,215
6,983,225
¥18,244,440
¥92,909,112
¥44,618,302
21,273,163
509,155
66,400,621
6,682,323
¥73,082,944
¥ 4,544,011
1,459,551
2,902,570
8,906,133
4,983,840
¥13,889,974
¥86,972,919
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 .................................................................................................................
Note: The figures above exclude negotiable certificates of deposit and Japan offshore banking accounts.
¥40,159,579
34,493,475
¥74,653,054
2014
Millions of yen
53.8%
46.2
100.0%
2013
¥38,827,723
33,819,677
¥72,647,400
53.4%
46.6
100.0%
165
SMBCSMFG 2014
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.
2014
¥2,893,374
352,831
¥3,246,205
2013
¥2,686,235
345,683
¥3,031,918
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.
2014
¥ 8,298,857
6,349,549
61,422
1,887,885
4,031,487
3,824,179
70,796
136,512
5,826,686
5,515,582
187,162
123,940
1,878,684
1,699,107
167,422
12,154
1,071,956
1,004,377
67,573
5
1,242,150
544,645
690,513
6,990
¥22,349,822
18,937,442
1,244,890
2,167,489
Millions of yen
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
166
SMBCDeposits (Nonconsolidated)SMFG 2014 Loans (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Balance of Loans and Bills Discounted
Year-End Balance
March 31
Domestic operations:
Millions of yen
2014
2013
Loans on notes ............................................................................................
Loans on deeds ...........................................................................................
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
Subtotal .......................................................................................................
International operations:
Loans on notes ............................................................................................
Loans on deeds ...........................................................................................
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
¥ 767,034
35,557,487
9,180,238
120,421
¥45,625,181
¥ 919,133
16,690,933
135,430
—
¥17,745,496
¥63,370,678
¥ 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
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2014
2013
Loans on notes ............................................................................................
Loans on deeds ...........................................................................................
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
Subtotal .......................................................................................................
¥ 862,023
35,667,404
8,730,765
108,502
¥45,370,735
International operations:
¥ 1,089,277
34,911,708
8,327,167
120,292
¥44,448,446
Loans on notes ............................................................................................
Loans on deeds ...........................................................................................
Overdrafts ....................................................................................................
Bills discounted ...........................................................................................
Subtotal .......................................................................................................
Total .................................................................................................................
Note: The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly current
¥ 860,604
15,562,953
161,169
—
¥16,584,726
¥61,955,462
¥ 656,326
12,914,024
150,523
—
¥13,720,874
¥58,169,321
method.
Balance of Loans and Bills Discounted, Classified by Purpose
March 31
Funds for capital investment ...........................................................................
Funds for working capital ................................................................................
Total .................................................................................................................
2014
¥20,854,059
42,516,619
¥63,370,678
32.9%
67.1
100.0%
2013
¥20,838,299
38,932,464
¥59,770,763
34.9%
65.1
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 .................................................................................................................
2014
¥ 625,687
1,056,461
—
6,545,000
1,069,055
9,296,206
22,888,977
31,185,495
¥63,370,678
Millions of yen
2013
¥ 526,510
1,020,675
—
6,468,203
900,384
8,915,773
18,820,060
32,034,929
¥59,770,763
167
SMBCSMFG 2014 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.
2014
¥ 9,010,734
10,352,290
8,220,488
2,131,802
9,888,388
8,198,133
1,690,255
4,957,410
4,293,891
663,519
19,846,185
18,883,021
963,163
9,315,668
9,315,668
—
¥63,370,678
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
Balance of Loan Portfolio, Classified by Industry
March 31
Domestic operations:
Millions of yen
2014
2013
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 .......................................................................................................
¥ 5,576,738
157,355
703,298
4,319,089
3,871,723
6,727,681
6,229,315
3,685,128
1,022,817
15,898,175
¥48,191,322
11.6%
0.3
1.5
9.0
8.0
14.0
12.9
7.6
2.1
33.0
100.0%
¥ 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%
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
¥ 36,664
899,404
10,344,435
896,914
¥12,177,419
¥59,770,763
¥ 45,614
1,252,313
12,497,387
1,384,040
¥15,179,355
¥63,370,678
0.3%
8.3
82.3
9.1
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.
2014
¥48,191,322
33,090,555
68.7%
2013
¥47,593,343
33,091,729
69.5%
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.)
168
SMBCLoans (Nonconsolidated)SMFG 2014
Consumer Loans Outstanding
March 31
Consumer loans ..............................................................................................
Housing loans ..............................................................................................
Residential purpose .................................................................................
Others ..........................................................................................................
2014
¥14,722,233
13,841,388
11,089,976
880,844
2013
¥14,955,844
14,086,232
11,190,267
869,612
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, 2014
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
¥379,403
[(4,241)]
242,152
[(725)]
66,198
[(699)]
5
¥621,560
[(4,966)]
¥357,297
[(1,240)]
* Transfer from reserves by reversal or origination method
Note: Figures in brackets [ ] indicate foreign exchange translation adjustments.
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.
Millions of yen
Increase during
the fiscal year
¥312,775
Decrease during the fiscal year
Others
Objectives
¥379,403*
¥ —
Balance at end
of the fiscal year
¥312,775
159,025
16,227
225,924*
159,025
31,711
2,174
64,023*
31,711
747
¥472,548
—
¥16,227
5*
¥605,333
747
¥472,548
¥255,268
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
Write-Off of Loans
Year ended March 31
Write-off of loans .............................................................................................
Note: Write-off of loans include amount of direct reduction.
2014
¥4,520
Millions of yen
2013
¥40,258
Specific Overseas Loans
March 31
Egypt ...............................................................................................................
Cyprus .............................................................................................................
Argentina .........................................................................................................
Total .................................................................................................................
Ratio of the total amounts to total assets .......................................................
Number of countries ........................................................................................
2014
¥10,999
55
5
¥11,060
0.00%
3
Millions of yen
2013
¥—
67
4
¥ 72
0.00%
2
169
SMBCLoans (Nonconsolidated)SMFG 2014 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
2014
¥ 29,827
614,678
6,520
186,194
¥837,221
¥231,407
Millions of yen
2013
¥ 44,949
760,701
9,004
247,634
¥1,062,290
¥ 321,197
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
2014
¥ 114,268
574,429
192,715
881,413
71,907,016
¥72,788,430
¥ 255,268
Millions of yen
2013
¥ 145,438
691,388
256,638
1,093,465
67,289,548
¥68,383,013
¥ 356,056
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
170
SMBCLoans (Nonconsolidated)SMFG 2014
Classification under Self-Assessment, Disclosure of Problem Assets, and Write-Offs/Reserves
March 31, 2014
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
¥114.3
¥104.9
¥9.4
Direct
write-offs
(Note 1)
¥11.8
(Note 2)
100%
(Note 3)
Doubtful assets (2)
Portion of claims secured by
collateral or guarantees, etc. (6)
¥574.4
¥364.3
Necessary
amount
reserved
¥210.1
Substandard loans (3)
¥192.7
(Claims to substandard borrowers)
Normal Borrowers
Normal assets
¥71,907.0
NPL ratio (A) / (4)
1.21%
(Note 5)
Total
(4)
¥72,788.4
(A) = (1) + (2) + (3)
¥881.4
Portion of substandard loans
secured by collateral or
guarantees, etc. (7)
¥98.2
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) ¥567.4
Unsecured portion
(D) = (A ) – (C)
Specific
reserve
General
reserve
¥146.6
(Note 2)
69.77%
(Note 3)
General reserve
for substandard
loans ¥54.6
¥313.4
(Note 6)
¥0.7
¥472.5
¥213.0
¥314.0
22.40%
(Note 3)
57.46%
(Note 3)
6.70%
[16.97%]
(Note 4)
0.17%
(Note 4)
Reserve ratio
(B) / (D)
67.83%
(Note 7)
Coverage ratio { ( B) + (C) } / (A)
88.54%
Notes: 1. Includes amount of direct reduction totaling ¥255.3 billion.
2. Includes reserves for assets that are not subject to disclosure under the Financial Reconstruction Act. (Bankrupt/Effectively Bankrupt Borrowers: ¥2.4
billion; Potentially Bankrupt Borrowers: ¥5.4 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. Includes Specific reserve for Borrowers Requiring Caution totaling 0.6 billion yen.
7. 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, 2012
➀
¥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
➁
¥145.5
691.4
¥836.9
Fiscal 2013
New occurrences Off-balanced
¥ (55.1)
(263.0)
¥(318.1)
¥ 23.9
146.0
¥169.9
March 31, 2014
➂
¥114.3
574.4
¥688.7
Billions of yen
Increase/
Decrease
➂ – ➁
¥ (31.2)
Bankrupt and quasi-bankrupt assets ...
(117.0)
Doubtful assets ....................................
¥(148.2)
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
¥ 11.1
(88.2)
¥(77.1)
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
fiscal 2012. Amount of ¥53.5 billion in fiscal 2012, recognized as “new occurrences” in the first half of the term, was included in the amounts off-balanced
in the second half.
171
SMBCLoans (Nonconsolidated)SMFG 2014
Securities (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Balance of Securities
Year-End Balance
March 31
Domestic operations:
Millions of yen
2014
2013
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 .................................................................................................................
¥13,822,947
46,830
2,398,284
4,287,847
1,003,621
/
/
¥21,559,531
¥ —
—
—
—
5,758,018
3,178,906
2,579,111
¥ 5,758,018
¥27,317,549
¥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
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2014
2013
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Japanese stocks ..........................................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
Subtotal .......................................................................................................
International operations:
¥16,063,121
80,789
2,365,242
3,181,987
925,239
/
/
¥22,616,380
¥26,528,645
177,017
2,665,321
3,220,358
460,192
/
/
¥33,051,536
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 current
¥ —
—
—
—
5,710,389
3,411,872
2,298,516
¥ 5,710,389
¥28,326,769
¥ —
—
—
—
6,209,456
4,483,159
1,726,296
¥ 6,209,456
¥39,260,992
method.
172
SMBCSMFG 2014 Balance of Securities Held, Classified by Maturity
March 31
One year or less
Millions of yen
2014
2013
Japanese government bonds ......................................................................
Japanese local government bonds .............................................................
Japanese corporate bonds .........................................................................
Others ..........................................................................................................
Foreign bonds ..........................................................................................
Foreign stocks .........................................................................................
¥ 4,689,108
12,392
639,242
768,566
752,318
—
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 .........................................................................................
6,216,136
33,753
872,091
882,013
809,276
—
1,516,897
160
568,760
1,045,134
941,937
—
1,400,805
481
142,921
471,718
436,100
252
—
—
99,379
93,300
10,569
3,530
—
42
75,888
384,958
228,703
154,888
—
—
—
4,287,847
3,115,946
—
2,420,440
¥13,822,947
46,830
2,398,284
4,287,847
6,761,639
3,178,906
2,579,111
¥ 8,105,692
45,360
278,473
630,608
616,160
—
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
173
SMBCSecurities (Nonconsolidated)SMFG 2014 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
13.97
0.47
8.88
2014
0.74%
2013
0.54%
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
2014
2013
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) ........................................................................................................
1.30%
0.86
0.44
1.40%
1.19
0.21
1.36%
0.96
0.40
1.10%
0.90
0.20
1.48%
1.31
0.17
1.21%
1.00
0.21
Loan-Deposit Ratio
March 31
Domestic operations:
Millions of yen
2014
2013
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.
¥45,625,181
78,074,818
58.43%
60.76
¥17,745,496
20,083,026
88.36%
90.90
¥63,370,678
98,157,844
64.55%
66.68
¥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
174
SMBCSMFG 2014
Securities-Deposit Ratio
March 31
Domestic operations:
Millions of yen
2014
2013
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.
¥21,559,531
78,074,818
27.61%
30.29
¥ 5,758,018
20,083,026
28.67%
31.29
¥27,317,549
98,157,844
27.83%
30.48
¥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
175
SMBCRatios (Nonconsolidated)SMFG 2014 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, 2014
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, 2014
Sumitomo Mitsui Financial Group, Inc. ..........................................................
Number of shares
106,248,400
b. Preferred Stock (1st series Type 6)
March 31, 2014
Sumitomo Mitsui Banking Corporation ...........................................................
Number of shares
70,001
Percentage of
shares outstanding
100.00%
Percentage of
shares outstanding
100.00%
176
SMBCSMFG 2014 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
2014
22,915
36-0
12-11
¥8,318
2013
22,569
36-1
12-10
¥7,991
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:
2014
505
150
4
2013
505
151
4
Branches .....................................................................................................
Subbranches ...............................................................................................
Representative offices .................................................................................
Total .................................................................................................................
Note: “Main offices and branches” includes the International Business Operations Dept. (2014, 2 branches; 2013, 2 branches), specialized deposit account branches
16
17
8
700
16
12
8
696
(2014, 46 branches; 2013, 46 branches) and ATM administration branches (2014, 17 branches; 2013, 17 branches).
Number of Automated Service Centers
March 31
Automated service centers..............................................................................
2014
42,500
2013
40,416
Domestic Exchange Transactions
Year ended March 31
Exchange for remittance:
Destined for various parts of the country:
Millions of yen
2014
2013
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
359,895
¥ 591,307,589
Received from various parts of the country:
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
299,198
¥ 977,507,315
Collection:
Destined for various parts of the country:
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
2,427
¥ 6,275,225
Received from various parts of the country:
Number of accounts (thousands) ............................................................
Amount ....................................................................................................
Total .................................................................................................................
916
¥ 1,977,062
¥1,577,067,193
365,674
¥ 580,395,381
297,836
¥ 960,396,071
2,496
¥ 6,311,422
944
¥ 2,020,653
¥1,549,123,529
177
SMBCSMFG 2014
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
2014
$2,279,378
2,002,238
$ 960,770
46,107
$5,288,495
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 .................................................................................................................
2014
¥ 7,664
27,875
—
55,626
8,789
¥ 99,956
623,553
5,043,559
¥5,767,068
2013
$2,332,030
1,984,878
$ 973,735
50,080
$5,340,724
2013
¥ 5,295
28,550
—
46,292
10,420
¥ 90,558
488,105
4,812,980
¥5,391,645
178
SMBCOthers (Nonconsolidated)SMFG 2014 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.....................................................................................
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 ................................................................................
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 ..............................................................................................
2014
¥ 143,469
143,469
1,420,372
392,975
956,208
2,623
68,565
37,977
561,473
6,432
555,041
—
—
566
173,585
698,147
72,421
72,421
¥3,108,012
¥1,122,512
1,324,977
100,000
558,412
—
2,110
¥3,108,012
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. Excludes trusts whose monetary values are difficult to calculate.
Millions of yen
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
179
SMBCSMFG 2014
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: 324
Please refer to “Principal Subsidiaries and Affiliates” on page 266 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.
■ 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.
180
SMFGSMFG 2014
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
Net defined benefit asset
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))
(Millions of yen, except percentages)
Year ended March 31, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
6,312,342
3,096,244
3,480,085
175,115
88,872
—
1,634
175,594
150,155
104,846
104,846
(A)
6,744,573
153,911
95,584
58,327
2,617
(11,761)
—
8,136
1,106
15,465
1,518
—
702,376
615,647
382,338
233,309
10,470
(47,047)
—
32,545
4,424
61,860
6,074
—
22,783
91,133
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
—
—
—
—
—
—
—
—
—
(B)
(C)
193,776
6,550,796
—
—
—
—
—
—
—
—
19+20+21
19
20
21
22
23
24
25
27
28
29
181
SMFGCapital Ratio InformationSMFG 2014 (Millions of yen, except percentages)
Year ended March 31, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
145,035
1,212,074
1,212,074
—
21,791
21,791
1,378,900
—
—
212
—
—
848
31,729
126,916
383,420
350,875
32,545
—
415,361
963,538
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
Qualifying 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)
182
(E)
(F)
(G)
7,514,335
—
—
—
—
34,422
1,627,426
—
1,627,426
60,709
53,383
7,325
506,578
480,004
26,574
2,229,136
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
SMFGCapital Ratio InformationSMFG 2014 (Millions of yen, except percentages)
Year ended March 31, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
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 II
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: 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)
—
—
—
—
6,402
25,611
25,000
100,000
(I)
(J)
(K)
150,650
150,650
182,052
2,047,083
9,561,418
284,115
151,410
70,582
20,068
(L)
61,623,294
10.63%
12.19%
15.51%
648,713
226,344
—
247,009
53,383
77,702
7,325
291,554
1,300,686
—
1,627,426
126,722
Items
Required capital ((L) ✕ 8%)
(Millions of yen)
Year ended March 31, 2014
4,929,863
52
53
54
55
57
58
59
60
61
62
63
72
73
74
75
76
77
78
79
82
83
84
85
183
SMFGCapital Ratio InformationSMFG 2014 (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)
184
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 2014 (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
Qualifying 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
185
SMFGCapital Ratio InformationSMFG 2014 (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 II
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%)
186
SMFGCapital Ratio InformationSMFG 2014 ■ Capital Requirements
March 31
Capital requirements for credit risk:
Billions of yen
2014
2013
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:
¥5,032.1
2,968.5
2,441.7
43.6
162.4
320.9
841.9
451.4
117.5
273.0
433.3
208.1
80.9
144.4
68.7
75.7
346.8
81.8
359.8
475.1
149.0
6.3
5,662.5
50.6
34.1
10.2
1.7
3.2
1.5
88.7
—
139.3
¥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
Advanced measurement approach ........................................................................................................
Basic indicator approach ........................................................................................................................
Total capital requirements for operational risk........................................................................................
Total amount of capital requirements .......................................................................................................
186.5
41.4
227.9
¥6,029.6
204.5
56.0
260.5
¥6,408.9
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.
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.
187
SMFGCapital Ratio InformationSMFG 2014
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 38). 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) and exposure at default (EAD) 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
188
SMFGCapital Ratio InformationSMFG 2014
(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, 2014
J1-J3 ................................... ¥22,177.3 ¥18,077.9 ¥4,099.4
J4-J6 ................................... 15,096.5 13,023.1
2,073.4
J7 (excluding J7R) ...............
73.1
1,009.0
Japanese government and
local municipal corporations ..... 41,396.6 41,080.5
316.1
Others ..................................
374.5
4,597.9
Default (J7R, J8-J10) ...........
28.4
1,129.8
Total ..................................... ¥85,883.0 ¥78,918.1 ¥6,964.9
4,972.4
1,158.2
1,082.1
Weighted
average
CCF
Weighted
average
LGD
Weighted
average
PD
50.35% 0.06% 35.62%
0.71
50.63
12.85
50.66
31.26
29.73
Weighted
average
ELdefault
Weighted
average
risk weight
—% 18.85%
—
46.05
— 125.89
Total
¥4,016.6
784.2
20.7
138.2
64.4
0.2
¥5,024.3
50.25
50.25
100.00
—
0.00
0.96
100.00
—
35.35
38.55
46.93
—
—
—
46.48
—
0.03
52.84
5.60
—
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
2,587.4
J4-J6 ................................... 15,507.9 12,920.5
J7 (excluding J7R) ...............
135.6
1,291.3
Japanese government and
445.7
local municipal corporations ..... 34,112.9 33,667.3
425.1
4,808.9
Others ..................................
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
—
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, 2014
G1-G3 .................................. ¥30,581.7 ¥23,079.9 ¥7,501.9
G4-G6 ..................................
355.5
G7 (excluding G7R) .............
28.5
Others ..................................
59.7
Default (G7R, G8-G10) ........
6.3
Total ..................................... ¥32,057.5 ¥24,105.7 ¥7,951.8
1,132.6
169.2
104.4
69.6
777.2
140.6
44.7
63.3
Weighted
average
PD
Weighted
average
LGD
Weighted
average
CCF
50.25% 0.16% 30.92%
2.49
50.25
23.65
50.25
1.91
50.25
100.00
100.00
—
—
24.06
23.58
35.46
66.10
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 21.49%
61.93
—
— 124.43
85.55
—
53.00
61.86
—
—
Total
¥6,675.6
229.5
27.5
28.5
1.3
¥6,962.5
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
sheet assets
Off-balance
March 31, 2013
sheet assets
G1-G3 .................................. ¥30,565.9 ¥22,024.0 ¥ 8,541.8
1,347.6
G4-G6 ..................................
41.9
G7 (excluding G7R) .............
72.8
Others ..................................
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
Weighted
average
ELdefault
Weighted
average
risk weight
—% 18.58%
—
34.43
— 112.64
— 102.07
51.35
—
60.97
—
189
SMFGCapital Ratio InformationSMFG 2014 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, 2014.
• 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:
2014
2013
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% ¥ 174.1
70%
890.5
Good:
Residual term less than 2.5 years .....
Residual term 2.5 years or more .......
Satisfactory ...........................................
Weak ......................................................
Default ...................................................
Total .......................................................
70%
90%
115%
250%
—
124.6
886.5
156.1
70.4
6.8
¥2,308.9
¥—
—
—
—
—
—
—
¥—
¥ 3.3
5.2
3.0
2.0
21.1
1.2
2.0
¥37.8
¥ 109.8
767.5
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
(b) High-Volatility Commercial Real Estate (HVCRE)
March 31
Strong:
Risk
weight
Billions of yen
2014
2013
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%
—
¥ 0.1
6.3
54.3
125.4
77.8
8.0
—
¥272.0
¥ —
—
53.7
120.7
102.5
9.0
—
¥285.9
190
SMFGCapital Ratio InformationSMFG 2014
b. PD/LGD Approach Applicable Portion, Other Than Slotting Criteria Applicable Portion
(a) Project Finance
Billions of yen
Exposure amount
Undrawn amount
March 31, 2014
G1-G3 ..................................
G4-G6 ..................................
G7 (excluding G7R) .............
Others ..................................
Default (G7R, G8-G10) ........
Total .....................................
Total
¥165.0
33.3
11.7
—
—
¥210.0
On-balance
sheet assets
¥118.5
30.3
11.7
—
—
¥160.6
Off-balance
sheet assets
¥46.5
3.0
—
—
—
¥49.4
Total
¥49.3
0.8
—
—
—
¥50.1
Weighted
average
CCF
50.25%
50.25
—
—
—
—
Weighted
average
LGD
Weighted
average
PD
0.39% 33.62%
3.42
35.01
—
—
—
10.85
88.86
—
—
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 60.45%
—
37.06
— 523.88
—
—
—
—
—
—
Note: While the slotting criteria have been applied to all “project finance” products as of March 31, 2013, PD/LGD approach has been applied for some products from
March 31, 2014.
(b) Object Finance
Billions of yen
Exposure amount
Undrawn amount
March 31, 2014
G1-G3 ..................................
G4-G6 ..................................
G7 (excluding G7R) .............
Others ..................................
Default (G7R, G8-G10) ........
Total .....................................
Total
¥127.6
18.1
3.2
—
0.7
¥149.6
On-balance
sheet assets
¥101.5
14.1
3.2
—
0.7
¥119.5
Off-balance
sheet assets
¥26.1
4.0
—
—
—
¥30.1
Total
¥29.9
—
—
—
—
¥29.9
Weighted
average
LGD
Weighted
Weighted
average
average
CCF
PD
50.25%
0.33% 15.46%
—
3.01
—
27.78
—
—
— 100.00
—
—
24.06
18.80
—
66.10
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 25.53%
—
81.65
— 103.34
—
—
53.00
61.86
—
—
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
—
(c) 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
ELdefault
Weighted
average
risk weight
—% 34.95%
—
—
—
64.07
—
75.69
67.60
—
51.35
—
Total
On-balance
sheet assets
March 31, 2014
J1-J3 ................................... ¥ 534.8 ¥ 466.7
J4-J6 ...................................
578.9
J7 (excluding J7R) ...............
18.6
Others ..................................
112.9
Default (J7R, J8-J10) ...........
8.8
Total ..................................... ¥1,386.7 ¥1,185.9
674.9
18.6
121.3
37.0
Off-balance
sheet assets
¥ 68.1
96.1
—
8.4
28.2
¥200.8
Total
¥ 2.1
0.6
—
16.2
—
¥18.9
Weighted
average
LGD
Weighted
average
CCF
50.25%
50.25
—
50.25
Weighted
average
PD
0.06% 27.10%
1.20
12.65
3.51
— 100.00
—
—
30.71
33.32
36.87
36.10
—
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
sheet assets
March 31, 2013
J1-J3 ................................... ¥ 466.2 ¥ 429.3
793.0
J4-J6 ...................................
34.2
J7 (excluding J7R) ...............
72.2
Others ..................................
27.6
Default (J7R, J8-J10) ...........
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
Weighted
average
ELdefault
Weighted
average
risk weight
—% 14.30%
66.88
—
— 145.17
45.59
—
7.00
35.54
—
—
Weighted
average
ELdefault
Weighted
average
risk weight
—% 13.57%
—
53.97
— 145.16
63.23
—
6.39
32.28
—
—
191
SMFGCapital Ratio InformationSMFG 2014 (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, 2014
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 ......................... ¥12,370.6
Others ...............................
522.5
Delinquent .............................
113.5
Default ..........................................
221.0
Total .............................................. ¥13,227.7
¥12,335.1
522.5
108.2
220.8
¥13,186.6
¥35.5
—
5.4
0.2
¥41.1
0.47%
1.07
21.75
100.00
—
36.70%
54.67
39.92
38.07
—
—%
—
—
36.18
—
26.51%
75.56
216.01
23.73
—
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, 2013
Mortgage loans
PD segment:
Not delinquent
Use model ......................... ¥12,364.9
581.3
Others ...............................
134.4
Delinquent .............................
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
—
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.
192
SMFGCapital Ratio InformationSMFG 2014
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, 2014
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 ..... ¥ 713.3 ¥ 630.2
Delinquent ............
14.6
15.1
¥ 80.9
0.5
¥ 2.2
—
¥ 207.7
3.3
Credit card balances
PD segment:
38.97% 2.34% 83.41%
16.07
76.74
23.47
—% 57.62%
— 206.45
Not delinquent .....
779.1
Delinquent ............
4.1
Default .........................
24.4
Total ............................. ¥2,112.7 ¥1,452.4
1,352.0
5.0
27.4
320.5
0.8
3.0
¥405.8
252.3
—
—
¥254.5
4,099.0
—
—
¥4,310.0
1.03
7.82
—
75.94
— 100.00
—
—
73.39
73.70
81.65
—
—
23.56
— 129.05
78.86
—
75.34
—
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, 2013
Card loans
PD segment:
Not delinquent ..... ¥ 652.4 ¥ 588.7
15.5
Delinquent ............
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
690.0
Not delinquent .....
4.2
Delinquent ............
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
—
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.”
193
SMFGCapital Ratio InformationSMFG 2014
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, 2014
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 .............................
¥1,413.4
346.9
253.3
¥1,395.5
345.7
251.3
Consumer loans
PD segment:
Not delinquent
Use model .........................
Others ...............................
Delinquent .............................
Default ..........................................
Total ..............................................
324.6
144.7
39.4
165.1
¥2,687.3
323.6
142.9
38.9
164.8
¥2,662.7
¥17.9
1.2
2.0
0.9
1.9
0.5
0.3
¥24.6
0.96%
0.58
23.62
55.10%
54.00
58.93
—%
—
—
49.12%
24.66
106.55
0.93
1.73
17.41
100.00
—
43.94
56.49
47.51
63.39
—
—
—
—
58.91
—
38.18
69.52
98.71
56.06
—
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, 2013
Business loans
PD segment:
Not delinquent
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
—
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.
194
SMFGCapital Ratio InformationSMFG 2014
(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
39) 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 ...........................................................................................................................................
2014
¥ 503.3
238.5
144.1
94.4
264.9
802.2
2,453.5
¥3,759.1
2013
¥ 447.1
219.1
118.4
100.7
228.1
743.7
2,173.6
¥3,364.5
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
¥565.1
48.1
2.0
186.8
0.2
¥802.2
Billions of yen
2014
Weighted
average
PD
0.05%
0.73
9.04
0.25
100.00
—
Weighted
average
risk weight
103.83%
193.66
543.57
139.26
1125.00
—
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
—
Exposure
amount
¥474.4
50.3
4.7
214.0
0.4
¥743.7
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 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 ........................................................................
2014
¥1,378.4
2013
¥1,203.2
Billions of yen
195
SMFGCapital Ratio InformationSMFG 2014
(4) Analysis of Actual Losses
A. Year-on-Year Comparison of Actual Losses
SMFG recorded a decrease of ¥222.2 billion in total credit costs (the total of the general reserve, non-performing loan write-offs and
gains on collection of written-off claims) compared to the previous fiscal year, resulting in gain on reversal of allowance for loan losses
of ¥49.1 billion on a consolidated basis for fiscal year 2013.
SMBC recorded a decrease of ¥143.4 billion in total credit costs compared to the previous fiscal year, which resulted in a gain on
reversal of allowance for loan losses of ¥123.9 billion on a non-consolidated basis in fiscal year 2013. By exposure category, the credit
cost for “corporate exposures” decreased by ¥133.5 billion, compared to the previous year with the resulting reversal gain of ¥122.8
billion. These were mainly due to our efforts to assist individual borrowers to improve their business and financial conditions which
suppressed further deterioration amid an improving economic environment and the generation of net reversal of reserve from the
allowance for loan losses posted in the past owing to the improved business conditions of obligors, the progress in scheduled repay-
ments and the disposal of mortgaged properties, as well as a decrease in the loan provision ratio owing to a downward trend in loan
losses.
Total Credit Costs
Billions of yen
Fiscal 2013 (A)
Fiscal 2012 (B)
Fiscal 2011
SMFG (consolidated) total .....................................................
SMBC (consolidated) total ....................................................
SMBC (nonconsolidated) total ..............................................
Corporate exposures .........................................................
Sovereign exposures .........................................................
Bank exposures .................................................................
Residential mortgage exposures .......................................
QRRE .................................................................................
Other retail exposures .......................................................
¥ (49.1)
(113.3)
(123.9)
(122.8)
0.3
(0.9)
(0.1)
(0.0)
(0.5)
¥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
Increase
(decrease)
(A) – (B)
¥(222.2)
(183.9)
(143.4)
(133.5)
0.6
(0.5)
(0.3)
(0.1)
(10.2)
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).
196
SMFGCapital Ratio InformationSMFG 2014
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 2013
Fiscal 2012
Estimated loss amounts
Estimated loss amounts
Billions of yen
After deduction
of reserves
¥ —
—
171.2
123.6
4.1
6.1
4.3
(0.0)
38.2
Actual loss
amounts
¥ (49.1)
(113.3)
(123.9)
(122.8)
0.3
(0.9)
(0.1)
(0.0)
(0.5)
¥ —
—
871.2
734.0
5.6
11.4
5.2
0.0
114.9
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
Fiscal 2011
Fiscal 2010
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 ..................................
¥ —
—
1,062.7
889.3
12.4
14.9
3.8
0.1
142.3
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
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
¥ —
—
1,204.3
1,021.1
7.8
30.5
4.1
0.1
140.8
Fiscal 2009
Fiscal 2008
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 ..................................
¥ —
—
1,197.2
984.0
5.8
52.1
4.0
0.1
151.2
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
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
¥ —
—
954.2
806.7
9.0
6.1
4.0
0.1
128.3
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.
197
SMFGCapital Ratio InformationSMFG 2014
■ Standardized Approach
1. Scope
The following consolidated subsidiaries have adopted the standardized approach for exposures as of March 31, 2014 (i.e. consolidated
subsidiaries not listed in the “Internal Ratings-Based (IRB) Approach: 1. Scope” on page 187).
(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 ..........................................................................................
¥ 6,367.9
187.0
1,184.2
0.7
88.9
3,134.1
2,912.5
106.6
106.5
0.0
0.0
¥14,088.4
Billions of yen
2014
2013
Of which assigned
country risk score
¥144.0
—
610.4
—
8.6
—
0.8
0.0
—
—
—
¥763.8
¥ 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
Of which assigned
country risk score
¥ 30.1
—
367.2
—
24.5
—
0.5
0.0
—
—
—
¥422.2
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.
198
SMFGCapital Ratio InformationSMFG 2014
■ 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 large expo-
sure limit lines, risk concentration monitoring, and reporting to the Credit Risk Committee (please refer to page 37). 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
2014
2013
Eligible financial
collateral
¥ —
66.9
41.5
—
25.4
4,309.1
¥4,376.0
Other eligible
IRB collateral
¥ —
60.3
60.3
0.0
—
—
¥60.3
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
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
2014
2013
March 31
Internal Ratings-Based (IRB) approach ....................................
Corporate exposures ............................................................
Sovereign exposures ............................................................
Bank exposures ....................................................................
Residential mortgage exposures ..........................................
QRRE ....................................................................................
Other retail exposures ..........................................................
Standardized approach ............................................................
Total ..........................................................................................
Guarantee
¥8,780.2
7,899.5
475.4
270.8
134.5
—
—
31.4
¥8,811.6
Credit derivative
¥271.0
271.0
—
—
—
—
—
—
¥271.0
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
199
SMFGCapital Ratio InformationSMFG 2014 ■ 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
2014
¥4,807.0
4,012.4
8,819.4
2,190.2
6,377.2
—
117.7
—
67.9
66.4
5,109.6
3,709.8
14.4
14.4
—
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
—
¥3,695.3
¥ 3,703.3
(2) Notional Principal Amounts of Credit Derivatives
Credit Default Swaps
Billions of yen
2014
Notional principal amount
2013
Notional principal amount
March 31
Protection purchased .........................................................
Protection provided ............................................................
Total
¥835.3
684.5
Of which
for CRM
¥271.0
—
Total
¥777.8
716.8
Of which
for CRM
¥222.0
—
Note: “Notional principal amount” is defined as the total of “amounts subject to calculation of credit equivalents” and “amounts employed for CRM.”
200
SMFGCapital Ratio InformationSMFG 2014 ■ 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. Particularly, with respect to securitization transactions backed by retail loans whose creditworthiness is relatively inferior,
such as subprime loans in the U.S., the Group deals only with transactions that are sufficiently structured by taking into account not only
the above policies, but others such as the underlying asset selection criteria of the originator and the average life.
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.
201
SMFGCapital Ratio InformationSMFG 2014
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
The recognition of the generation and extinguishment of financial assets and financial liabilities associated with securitization transactions
and the valuation and accounting treatment thereof are mainly governed by the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10).
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.
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SMFGCapital Ratio InformationSMFG 2014
8. Portfolio (Credit Risk)
(1) Securitization Transactions as Originator
A. As Originator (Excluding as Sponsor)
(A) Underlying Assets
March 31, 2014
Underlying asset amount
Asset
transfer type
¥ 2.5
1,259.5
Synthetic
type
¥ —
—
Total
¥ 2.5
1,259.5
14.9
146.1
¥1,423.0
—
3.8
¥1,265.9
14.9
142.3
¥157.2
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
Billions of yen
Fiscal 2013
Securitized
amount
¥ —
159.9
—
—
¥159.9
Default
amount
¥ 0.8
1.6
10.3
—
¥12.7
Loss
amount
¥ 0.8
0.4
19.6
—
¥20.9
Gains/losses
on sales
¥ —
10.8
—
—
¥10.8
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
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
2014
Term-end balance
Amounts
subject to
a 1250%
risk weight
Off-balance
sheet assets
¥ — ¥ 0.7
27.4
—
Increase
in capital
equivalent
¥ —
40.7
On-balance
sheet assets
¥ 4.9
229.7
Billions of yen
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
—
0.5
¥235.1
4.7
86.8
¥91.5
3.6
2.2
¥33.9
—
—
¥40.7
2.9
1.1
¥232.8
6.6
73.4
¥80.0
7.0
1.9
¥40.4
0.1
—
¥39.1
Total
¥ 6.9
221.8
9.6
74.4
¥312.8
Total
March 31
Claims on corporates ..... ¥ 4.9
Mortgage loans ..............
229.7
Retail loans (excluding
mortgage loans) .............
4.7
Other claims ...................
87.3
Total ................................ ¥326.6
b. Risk Weights
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥ 51.4
33.9
1.1
—
240.2
¥326.6
Billions of yen
2014
Term-end balance
On-balance
sheet assets
¥ 0.7
—
—
—
234.4
¥235.1
Off-balance
sheet assets
¥50.7
33.9
1.1
—
5.8
¥91.5
Required
capital
¥ 0.5
1.0
0.1
—
35.9
¥37.5
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
Total
¥ 45.8
29.1
1.3
—
236.5
¥312.8
Required
capital
¥ 0.5
0.9
0.1
—
42.6
¥44.1
203
SMFGCapital Ratio InformationSMFG 2014
(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 ....
2014
¥—
2013
¥—
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, 2014
Underlying asset amount
Asset
transfer type
¥ 818.1
—
267.1
46.0
¥1,131.2
Total
¥ 818.1
—
267.1
46.0
¥1,131.2
Synthetic
type
¥—
—
—
—
¥—
Fiscal 2013
Securitized
amount
¥5,021.8
—
404.0
23.7
¥5,449.4
Default
amount
¥74.0
—
1.2
1.0
¥76.2
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
Loss
amount
¥70.8
—
2.3
0.8
¥73.9
Loss
amount
¥73.3
2.3
11.9
1.4
¥89.0
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
2014
Term-end balance
Total
March 31
Claims on corporates ..... ¥641.3
Mortgage loans ..............
—
Retail loans (excluding
mortgage loans) .............
247.2
Other claims ...................
38.0
Total ................................ ¥926.4
On-balance
sheet assets
¥641.3
—
247.2
38.0
¥926.4
Off-balance
sheet assets
¥—
—
—
—
¥—
Amounts
subject to
a 1250%
risk weight
¥—
—
Increase
in capital
equivalent
¥—
—
—
—
¥—
—
—
¥—
204
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
¥612.8
—
124.0
51.3
¥788.0
SMFGCapital Ratio InformationSMFG 2014
b. Risk Weights
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥920.3
6.1
—
—
—
¥926.4
Billions of yen
2014
Term-end balance
On-balance
sheet assets
¥920.3
6.1
—
—
—
¥926.4
Off-balance
sheet assets
¥—
—
—
—
—
¥—
Required
capital
¥5.5
0.3
—
—
—
¥5.8
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
Total
¥778.8
8.2
1.0
—
—
¥788.0
Required
capital
¥5.0
0.3
0.1
—
—
¥5.5
(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 ....
2014
¥—
2013
¥—
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 ..... ¥430.9
Mortgage loans ..............
93.5
Retail loans (excluding
mortgage loans) .............
143.4
Other claims ...................
—
Total ................................ ¥667.7
2014
Term-end balance
On-balance
sheet assets
¥150.3
93.5
Off-balance
sheet assets
¥280.6
—
Amounts
subject to
a 1250%
risk weight
¥32.3
—
Increase
in capital
equivalent
¥—
—
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
¥—
—
142.6
—
¥386.4
0.8
—
¥281.4
—
—
¥32.3
—
—
¥—
94.6
6.9
¥295.1
10.3
—
¥252.9
—
—
¥49.3
—
—
¥—
Total
¥368.8
67.4
104.9
6.9
¥548.0
Notes: 1. Asset type classification is based on the major items in the underlying assets for each transaction.
2. “Retail loans (excluding mortgage loans)” includes balances of ¥3.1 billion as of March 31, 2014 and ¥2.8 billion as of March 31, 2013 for the securitization
exposures which includes loans whose credit risk are relatively high, such as U.S. subprime loans.
b. Risk Weights
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥530.6
38.2
—
—
99.0
¥667.7
Billions of yen
2014
Term-end balance
On-balance
sheet assets
¥347.4
38.2
—
—
0.7
¥386.4
Off-balance
sheet assets
¥183.2
—
—
—
98.2
¥281.4
Required
capital
¥2.5
1.3
—
—
34.2
¥38.0
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
Total
¥422.3
35.3
—
—
90.4
¥548.0
Required
capital
¥ 1.9
1.3
—
—
52.3
¥55.5
Note: The risk weight of “100% or less” includes balances of ¥3.1 billion as of March 31, 2014 and ¥2.8 billion as of March 31, 2013 for the securitization exposures
which includes loans whose credit risk are relatively high, such as U.S. subprime loans.
205
SMFGCapital Ratio InformationSMFG 2014
(B) Resecuritization Exposures
a. Underlying Assets by Asset Type
2014
Term-end balance
March 31
Claims on corporates .....
Mortgage loans ..............
Retail loans (excluding
mortgage loans) .............
Other claims ...................
Total ................................
Total
¥0.6
—
—
1.0
¥1.6
On-balance
sheet assets
Off-balance
sheet assets
¥0.6
—
—
0.4
¥1.0
¥ —
—
—
0.6
¥0.6
Billions of yen
Amounts
subject to
a 1250%
risk weight
¥0.1
—
Increase
in capital
equivalent
¥—
—
—
0.4
¥0.5
—
—
¥—
2013
Term-end balance
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
Amounts
subject to
a 1250%
risk weight
¥0.2
—
Increase
in capital
equivalent
¥—
—
—
0.7
¥0.9
—
—
¥—
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
¥1.0
0.1
—
—
0.5
¥1.6
Billions of yen
2014
Term-end balance
On-balance
sheet assets
Off-balance
sheet assets
¥0.5
—
—
—
0.5
¥1.0
¥0.5
0.1
—
—
—
¥0.6
Required
capital
¥0.0
0.0
—
—
0.5
¥0.5
2013
Term-end balance
On-balance
sheet assets
Off-balance
sheet assets
¥0.4
—
—
—
1.1
¥1.5
¥0.6
—
—
—
—
¥0.6
Total
¥1.1
—
—
—
1.1
¥2.1
Required
capital
¥0.0
—
—
—
0.9
¥0.9
(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 ....
2014
¥—
2013
¥—
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 as Investor
There are no amounts that represent “securitization transactions where the Group serves as the investor.”
206
SMFGCapital Ratio InformationSMFG 2014
■ 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
¥3,456.8
293.6
¥3,750.4
Fair value
¥3,456.8
—
¥ —
Balance sheet amount
¥3,067.5
310.7
¥3,378.2
Fair value
¥3,067.5
—
¥ —
Billions of yen
2014
2013
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 2013
¥ 89.2
108.2
8.7
10.2
Fiscal 2012
¥(21.0)
38.4
29.4
29.9
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....................................................................................
2014
2013
¥1,250.6
¥867.6
Note: The above amount is for stocks of Japanese companies and foreign stocks with market prices.
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
2014
2013
¥(57.1)
¥(11.4)
207
SMFGCapital Ratio InformationSMFG 2014
■ 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, 2014
Domestic operations (excluding offshore banking accounts)
Loans, etc.
Bonds
Billions of yen
Derivatives
Others
Total
Manufacturing............................................................................ ¥ 8,908.0
Agriculture, forestry, fishery and mining ....................................
198.7
Construction ..............................................................................
1,185.8
Transport, information, communications and utilities ................
5,835.1
Wholesale and retail ..................................................................
5,798.8
Financial and insurance .............................................................
31,229.7
Real estate, goods rental and leasing .......................................
8,324.5
Services .....................................................................................
5,214.4
Local municipal corporations ....................................................
1,804.5
Other industries .........................................................................
27,108.7
Subtotal ..................................................................................... ¥ 95,608.3
Overseas operations and offshore banking accounts
Sovereigns ................................................................................. ¥ 6,418.0
Financial institutions ..................................................................
5,159.1
C&I companies ..........................................................................
17,394.6
Others ........................................................................................
4,699.1
Subtotal ..................................................................................... ¥ 33,670.8
Total ............................................................................................... ¥129,279.1
¥ 235.4
4.3
50.6
154.9
38.8
524.7
318.1
68.8
282.5
15,598.9
¥17,277.0
¥ 1,162.0
310.3
216.1
411.9
¥ 2,100.3
¥19,377.3
¥ 195.6
4.3
3.9
97.0
143.0
1,477.2
42.4
37.9
9.6
125.4
¥2,136.2
¥ 8.7
1,077.7
437.2
34.5
¥1,558.1
¥3,694.3
¥ 2,388.8
30.2
197.8
852.0
814.6
1,564.5
390.0
605.2
14.7
5,261.4
¥12,119.2
¥ 8.4
773.7
428.8
1,885.2
¥ 3,096.2
¥15,215.3
¥ 11,727.9
237.5
1,438.2
6,938.9
6,795.2
34,796.1
9,074.9
5,926.4
2,111.4
48,094.4
¥127,140.7
¥ 7,597.1
7,320.9
18,476.6
7,030.7
¥ 40,425.4
¥167,566.0
March 31, 2013
Domestic operations (excluding offshore banking accounts)
Loans, etc.
Bonds
Billions of yen
Derivatives
Others
Total
Manufacturing............................................................................ ¥ 9,917.3
189.1
Agriculture, forestry, fishery and mining ....................................
1,209.2
Construction ..............................................................................
5,837.9
Transport, information, communications and utilities ................
Wholesale and retail ..................................................................
5,775.0
13,577.4
Financial and insurance .............................................................
8,461.2
Real estate, goods rental and leasing .......................................
4,880.7
Services .....................................................................................
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
15,388.9
C&I companies ..........................................................................
Others ........................................................................................
3,276.4
Subtotal ..................................................................................... ¥ 28,640.8
Total ............................................................................................... ¥106,689.6
Notes: 1. The above amounts are exposures after CRM.
¥ 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
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.
208
SMFGCapital Ratio InformationSMFG 2014
2. Exposure Balance by Type of Assets and Residual Term
Loans, etc.
March 31, 2014
To 1 year ........................................................................................ ¥ 35,233.1
More than 1 year to 3 years...........................................................
14,914.7
More than 3 years to 5 years .........................................................
14,976.0
More than 5 years to 7 years .........................................................
6,246.6
More than 7 years ..........................................................................
24,773.9
No fixed maturity ...........................................................................
33,134.7
Total ............................................................................................... ¥129,279.1
March 31, 2013
Loans, etc.
To 1 year ........................................................................................ ¥ 35,122.9
15,025.7
More than 1 year to 3 years...........................................................
13,631.5
More than 3 years to 5 years .........................................................
5,411.7
More than 5 years to 7 years .........................................................
24,835.3
More than 7 years ..........................................................................
No fixed maturity ...........................................................................
12,662.4
Total ............................................................................................... ¥106,689.6
Notes: 1. The above amounts are exposures after CRM.
Bonds
¥ 5,978.7
7,701.2
2,856.5
2,114.4
726.5
—
¥19,377.3
Bonds
¥ 9,156.4
11,803.3
10,333.2
2,204.2
1,245.1
—
¥34,742.2
Billions of yen
Derivatives
¥ 491.3
834.3
1,446.7
361.3
560.7
—
¥3,694.3
Billions of yen
Derivatives
¥ 672.6
713.5
1,415.6
287.8
612.7
—
¥3,702.1
Others
¥ 663.1
1,138.9
1,648.4
454.6
745.6
10,564.8
¥15,215.3
Others
¥ 915.1
1,150.7
1,818.5
430.8
811.5
8,632.1
¥13,758.8
Total
¥ 42,366.2
24,589.1
20,927.7
9,176.8
26,806.7
43,699.6
¥167,566.0
Total
¥ 45,867.1
28,693.2
27,198.8
8,334.5
27,504.6
21,294.5
¥158,892.7
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 .................................................................................................................................................
2014
¥1,904.5
92.8
26.5
3.4
62.9
¥1,997.3
2013
¥2,365.5
114.2
26.1
18.6
69.5
¥2,479.7
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 ......................................................................................................
2014
¥ 241.1
3.9
82.2
165.9
244.2
14.4
477.1
207.4
468.3
¥1,904.5
¥ 4.5
85.6
2.7
¥ 92.8
¥1,997.3
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
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.
209
SMFGCapital Ratio InformationSMFG 2014
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 .................................................................................................
2014 (A)
¥ 473.2
0.7
784.6
745.6
39.0
14.3
3.3
21.4
¥1,258.5
Notes: 1. “Specific reserve for possible loan losses” includes partial direct write-offs (direct reductions).
Billions of yen
2013 (B)
¥ 539.3
0.0
1,042.7
990.7
52.0
15.0
12.2
24.8
¥1,582.0
2012
¥ 593.3
0.2
1,071.3
1,008.2
63.1
12.9
22.3
27.9
¥1,664.8
Increase (decrease)
(A) – (B)
¥ (66.1)
0.7
(258.1)
(245.1)
(13.0)
(0.7)
(8.9)
(3.4)
¥(323.5)
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 ......................................................................................................
2014 (A)
¥ 473.2
0.7
784.6
745.6
110.0
3.0
38.4
63.7
115.1
10.9
173.0
89.9
141.6
39.0
2.9
34.1
2.0
¥1,258.5
2013 (B)
¥ 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
¥ 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
Increase (decrease)
(A) – (B)
¥ (66.1)
0.7
(258.1)
(245.1)
(23.2)
(0.5)
(22.1)
(34.7)
(30.7)
(1.3)
(89.1)
(33.1)
(10.4)
(13.0)
(2.7)
(10.7)
0.4
¥(323.5)
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
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 ............................................................................................................
Billions of yen
Fiscal 2013
Fiscal 2012
¥ 4.1
0.1
(0.1)
1.2
1.5
(1.0)
0.3
(1.3)
78.2
¥83.0
¥ (0.0)
(1.3)
3.2
¥ 1.9
¥84.9
¥ 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
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.
210
SMFGCapital Ratio InformationSMFG 2014
■ 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 2013
Fiscal 2012
Billions of yen
VaR
¥1.5
8.5
1.3
3.9
Stressed VaR
¥ 2.3
17.8
2.3
8.4
VaR
¥2.4
6.3
1.3
3.8
Stressed VaR
¥ 4.7
12.7
2.5
7.7
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 2013
¥41.5
49.2
29.9
40.2
Fiscal 2012
¥31.1
35.2
23.6
29.5
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.
211
SMFGCapital Ratio InformationSMFG 2014
■ 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., Cedyna Financial Corporation
2. Outline of the AMA
For the “Outline of the AMA,” please refer to pages 45 to 47.
3. Usage of Insurance to Mitigate Risk
SMFG had not taken measures to mitigate operational risk through insurance coverage for exposures.
212
SMFGCapital Ratio InformationSMFG 2014
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2014)
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
(Millions of yen)
Consolidated balance sheet as
in published financial
statements
Amount
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
Items
(Assets)
Cash and due from 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
Net defined benefit asset
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets
(Liabilities)
Deposits
Negotiable certificates of deposit
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
Net defined benefit liability
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
32,991,113
1,248,235
522,860
3,780,260
3,552,658
6,957,419
23,120
27,152,781
68,227,688
1,790,406
1,827,251
4,181,512
2,346,788
819,895
119,932
173,180
6,566,818
(747,536)
161,534,387
94,331,925
13,713,539
4,112,428
1,710,101
5,330,974
2,374,051
4,779,969
7,020,841
451,658
1,145,200
5,090,894
699,329
4,712,069
69,419
4,921
45,385
2,004
20,355
14,858
190,182
771
103,390
38,276
6,566,818
152,529,368
2,337,895
758,349
3,480,085
(175,115)
6,401,215
949,508
(60,946)
35,749
27,239
(73,579)
877,971
1,791
1,724,041
9,005,019
161,534,387
7-a
3-b, 7-b
7-c
3-a
4
5-a
7-d
5-b
5-c
1-a
1-b
1-c
1-d
6
2, 8-a
8-b
3
213
SMFGCapital Ratio InformationSMFG 2014 (Appended Table)
1. Stockholders’ equity
(1) Consolidated balance sheet
Consolidated balance sheet items
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
(2) Composition of capital
Composition of capital disclosure
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: other than the above
Amount
2,337,895
758,349
3,480,085
(175,115)
6,401,215
Amount
6,401,215
3,096,244
3,480,085
175,115
—
(Millions of yen)
Remarks
Ref. No.
1-a
1-b
1-c
1-d
(Millions of yen)
Remarks
Basel III Template
No.
Stockholders’ equity attributable to common shares (before adjusting
national specific regulatory adjustments (earnings to be distributed))
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as equity under applicable
accounting standards and the breakdown
—
Stockholders’ equity attributable to preferred shares with a loss
absorbency clause upon entering into effectively bankruptcy
2. Stock acquisition rights
(1) Consolidated balance sheet
Consolidated balance sheet items
Stock acquisition rights
of which: Stock acquisition rights issued by
bank holding company
(2) Composition of capital
Amount
1,791
1,634
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Stock acquisition rights to common shares
Stock acquisition rights to Additional Tier 1 instruments
Stock acquisition rights to Tier 2 instruments
3. Intangible assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Intangible fixed assets
Securities
of which: goodwill attributable to equity-method investees
Income taxes related to above
(2) Composition of capital
1,634
—
—
Amount
819,895
27,152,781
110,898
161,233
Composition of capital disclosure
Amount
Remarks
Goodwill (including those equivalent)
Other intangible assets other than goodwill and mortgage servicing rights
Mortgage servicing rights
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Mortgage servicing rights that are below the thresholds for
deduction (before risk weighting)
4. Net defined benefit asset
(1) Consolidated balance sheet
Consolidated balance sheet items
Net defined benefit asset
Income taxes related to above
(2) Composition of capital
Composition of capital disclosure
Net defined benefit asset
214
Software and other
477,922
291,636
—
—
—
—
Amount
119,932
42,607
Amount
77,325
Remarks
Remarks
(Millions of yen)
Remarks
(Millions of yen)
(Millions of yen)
(Millions of yen)
Basel III Template
No.
15
1a
2
1c
31a
Ref. No.
2
Basel III Template
No.
1b
31b
46
Ref. No.
3-a
3-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
4
SMFGCapital Ratio InformationSMFG 2014 5. Deferred tax assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Tax effects on other intangible assets
Tax effects on net defined benefit asset
(2) Composition of capital
Amount
173,180
103,390
38,276
161,233
42,607
(Millions of yen)
Remarks
Ref. No.
5-a
5-b
5-c
(Millions of yen)
Basel III Template
No.
Composition of capital disclosure
Amount
Remarks
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences (net of related tax liability)
Deferred tax assets arising from temporary differences (net of related tax
liability)
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Deferred tax assets arising from temporary differences that
are below the thresholds for deduction (before risk weighting)
13,087
247,009
—
—
247,009
6. Deferred gains or losses on derivatives under hedge accounting
(1) Consolidated balance sheet
Consolidated balance sheet items
Net deferred losses on hedges
(2) Composition of capital
Amount
(60,946)
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Net deferred losses on hedges
(58,809)
Excluding those items whose valuation differences arising from
hedged items are recognized as “Accumulated other comprehensive
income”
10
21
25
75
Ref. No.
6
Basel III Template
No.
11
7. Items associated with investments in the capital of financial institutions
(1) Consolidated balance sheet
(Millions of yen)
Consolidated balance sheet items
Trading assets
Securities
Loans and bills discounted
Trading liabilities
Amount
6,957,419
27,152,781
68,227,688
4,779,969
Remarks
Including trading account securities and derivatives for trading assets
Including subordinated loans
Including trading account securities sold and derivatives for trading
liabilities
Ref. No.
7-a
7-b
7-c
7-d
215
SMFGCapital Ratio InformationSMFG 2014 (2) Composition of capital
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
Investments in own capital instruments
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capital of banking, financial and
insurance entities
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
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)
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Non-significant investments in the capital of Other Financial
Institutions that are below the thresholds for deduction
(before risk weighting)
Significant investments in the capital of Other Financial Institutions,
net of eligible short positions
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Additional Tier 1 capital
Tier 2 capital
Significant investments in the common stocks of Other
Financial Institutions that are below the thresholds for
deduction (before risk weighting)
8. Minority interests
(1) Consolidated balance sheet
Consolidated balance sheet items
Stock acquisition rights
Minority interests
(2) Composition of capital
7,592
7,592
—
—
—
—
—
—
795,704
113,916
1,060
32,014
648,713
509,990
—
—
158,645
125,000
226,344
Amount
1,791
1,724,041
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Amount allowed to be included in group Common Equity Tier 1
Qualifying Additional Tier 1 instruments plus related capital surplus
issued by special purpose vehicles and other equivalent entities
Amount allowed to be included in group Additional Tier 1
Qualifying Tier 2 instruments plus related capital surplus issued by
special purpose vehicles and other equivalent entities
Amount allowed to be included in group Tier 2
150,155
—
145,035
—
34,422
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
Ref. No.
8-a
8-b
Basel III Template
No.
5
30-31ab-32
34-35
46
48-49
Note:
Amounts in the “Composition of capital disclosure” are based on those before considering under transitional arrangements and includes “Amounts excluded under transitional arrange-
ments” disclosed in “Capital Structure Information” as well as amounts included as regulatory capital. In addition, items for regulatory purpose under transitional arrangement are
excluded from this table.
216
SMFGCapital Ratio InformationSMFG 2014 ■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2013)
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
(Millions of yen)
Consolidated balance sheet as
in published financial
statements
Amount
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
Items
(Assets)
Cash and due from 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
(Liabilities)
Deposits
Negotiable certificates of deposit
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
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
10,799,291
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
89,081,811
11,755,654
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
7-a
7-b
3-b, 7-c
7-d
4
3-a
5-a
7-e
5-b
5-c
1-a
1-b
1-c
1-d
6
2, 8-a
8-b
3
217
SMFGCapital Ratio InformationSMFG 2014 (Appended Table)
1. Stockholders’ equity
(1) Consolidated balance sheet
Consolidated balance sheet items
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
(2) Composition of capital
Composition of capital disclosure
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: other than the above
Amount
2,337,895
758,630
2,811,474
(227,373)
5,680,627
Amount
5,680,627
3,096,526
2,811,474
(227,373)
—
(Millions of yen)
Remarks
Ref. No.
1-a
1-b
1-c
1-d
(Millions of yen)
Remarks
Basel III Template
No.
Stockholders’ equity attributable to common shares (before adjusting
national specific regulatory adjustments (earnings to be distributed))
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as equity under applicable
accounting standards and the breakdown
—
Stockholders’ equity attributable to preferred shares with a loss
absorbency clause upon entering into effectively bankruptcy
2. Stock acquisition rights
(1) Consolidated balance sheet
Consolidated balance sheet items
Stock acquisition rights
of which: Stock acquisition rights issued by bank holding
company
Amount
1,260
1,140
(Millions of yen)
Remarks
(2) Composition of capital
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Stock acquisition rights to common shares
Stock acquisition rights to Additional Tier 1 instruments
Stock acquisition rights to Tier 2 instruments
3. Intangible assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Intangible fixed assets
Securities
of which: goodwill attributable to equity-method investees
Income taxes related to above
(2) Composition of capital
1,140
—
—
Amount
790,860
41,306,731
25,811
147,818
Composition of capital disclosure
Amount
Remarks
Goodwill (including those equivalent)
Other intangible assets other than goodwill and mortgage servicing rights
Mortgage servicing rights
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Mortgage servicing rights that are below the thresholds for
deduction (before risk weighting)
4. Prepaid pension cost
(1) Consolidated balance sheet
Consolidated balance sheet items
Other assets
of which: prepaid pension cost
Income taxes related to above
(2) Composition of capital
Composition of capital disclosure
Prepaid pension cost
218
Software and other
400,969
267,884
—
—
—
—
Amount
4,367,634
224,719
79,935
Amount
144,783
Remarks
Remarks
(Millions of yen)
Remarks
(Millions of yen)
(Millions of yen)
(Millions of yen)
Basel III Template
No.
15
1a
2
1c
31a
Ref. No.
2
Basel III Template
No.
1b
31b
46
Ref. No.
3-a
3-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
4
SMFGCapital Ratio InformationSMFG 2014 5. Deferred tax assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Tax effects on other intangible assets
Tax effects on prepaid pension cost
(2) Composition of capital
Amount
374,258
68,120
39,683
147,818
79,935
(Millions of yen)
Remarks
Ref. No.
5-a
5-b
5-c
(Millions of yen)
Basel III Template
No.
Composition of capital disclosure
Amount
Remarks
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences (net of related tax liability)
Deferred tax assets arising from temporary differences (net of related tax
liability)
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Deferred tax assets arising from temporary differences that
are below the thresholds for deduction (before risk weighting)
9,897
506,519
—
—
506,519
6. Deferred gains or losses on derivatives under hedge accounting
(1) Consolidated balance sheet
Consolidated balance sheet items
Net deferred losses on hedges
(2) Composition of capital
Amount
(32,863)
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Net deferred losses on hedges
(29,649)
Excluding those items whose valuation differences arising from
hedged items are recognized as “Accumulated other comprehensive
income”
7. Items associated with investments in the capital of financial institutions
(1) Consolidated balance sheet
(Millions of yen)
Consolidated balance sheet items
Trading assets
Money held in trust
Securities
Loans and bills discounted
Trading liabilities
Amount
7,765,554
22,789
41,306,731
65,632,091
6,119,631
Remarks
Including trading account securities and derivatives for trading assets
Including subordinated loans
Including trading account securities sold and derivatives for trading
liabilities
10
21
25
75
Ref. No.
6
Basel III Template
No.
11
Ref. No.
7-a
7-b
7-c
7-d
7-e
219
SMFGCapital Ratio InformationSMFG 2014 (2) Composition of capital
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
Investments in own capital instruments
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capital of banking, financial and
insurance entities
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
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)
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Non-significant investments in the capital of Other Financial
Institutions that are below the thresholds for deduction
(before risk weighting)
Significant investments in the capital of Other Financial Institutions,
net of eligible short positions
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Additional Tier 1 capital
Tier 2 capital
Significant investments in the common stocks of Other
Financial Institutions that are below the thresholds for
deduction (before risk weighting)
8. Minority interests
(1) Consolidated balance sheet
Consolidated balance sheet items
Stock acquisition rights
Minority interests
(2) Composition of capital
9,019
9,019
—
—
—
—
—
—
798,416
169,361
1,589
73,250
554,215
479,547
—
—
157,149
125,000
197,398
Amount
1,260
2,096,760
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Amount allowed to be included in group Common Equity Tier 1
Qualifying Additional Tier 1 instruments plus related capital surplus
issued by special purpose vehicles and other equivalent entities
Amount allowed to be included in group Additional Tier 1
Qualifying Tier 2 instruments plus related capital surplus issued by
special purpose vehicles and other equivalent entities
Amount allowed to be included in group Tier 2
139,300
—
127,606
—
28,909
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
Ref. No.
8-a
8-b
Basel III Template
No.
5
30-31ab-32
34-35
46
48-49
Note:
Amounts in the “Composition of capital disclosure” are based on those before considering under transitional arrangements and includes “Amounts excluded under transitional arrange-
ments” disclosed in “Capital Structure Information” as well as amounts included as regulatory capital. In addition, items for regulatory purpose under transitional arrangement are
excluded from this table.
220
SMFGCapital Ratio InformationSMFG 2014 ■ Indicators for assessing Global Systemically Important Banks (G-SIBs)
Item No.
Description
1
2
3
4
5
6
7
8
9
Total exposures (a + b + c + d):
a. Counterparty exposure of derivatives contracts
b. Gross value of securities financing transactions (SFTs) and counterparty exposure of SFTs
c. Other assets (other than assets specifically identified above and regulatory adjustments to Tier 1 and CET 1 capital under the fully
phased-in Basel III framework)
d. Notional amount of off-balance sheet items (other than derivatives contracts and SFTs)
Intra-financial system assets (a + b + c + d):
a. Funds deposited with or lent to other financial institutions and undrawn committed lines extended to other financial institutions
b. Holdings of securities issued by other financial institutions (Note 1)
c. Net positive current exposure of SFTs with other financial institutions
d. Over-the-counter (OTC) derivatives with other financial institutions that have a net positive fair value
Intra-financial system liabilities (a + b + c):
a. Deposits due to, and undrawn committed lines obtained from, other financial institutions
b. Net negative current exposure of SFTs with other financial institutions
c. OTC derivatives with other financial institutions that have a net negative fair value
Securities outstanding (Note 1)
Assets under custody
Notional amount of OTC derivatives
Held-for-trading (HFT) securities and available-for-sale (AFS) securities, excluding HFT and AFS securities that meet the definition of
Level 1 assets and Level 2 assets with haircuts (Note 2)
Level 3 assets (Note 3)
Cross-jurisdictional claims
10
Cross-jurisdictional liabilities
(In 0.1 billion yen)
As of March 31, 2014
1,783,163
263,493
174,017
285,583
104,866
6,027,176
132,616
10,050
349,162
178,486
Item No.
11
12
Payments (settled through the BOJ-NET, the Japanese Banks’ Payment Clearing Network and other similar settlement systems, excluding
intragroup payments)
Underwritten transactions in debt and equity markets (Note 4)
24,129,369
57,742
Description
FY ended March 31, 2014
Notes: 1. Securities refer to secured debt securities, senior unsecured debt securities, subordinated debt securities, commercial paper, certificate of deposits, and common equities.
2. Level 1 and Level 2 assets with haircuts are defined in the Basel III Liquidity Coverage Ratio (LCR).
3. The amount is calculated in accordance with the International Financial Reporting Standards (or U.S. GAAP).
4. This refers to underwriting of securities defined in article 2 paragraph 8 item 6 of the Financial Instruments and Exchange Act.
221
SMFGCapital Ratio InformationSMFG 2014
Capital Ratio Information (Consolidated)
Sumitomo Mitsui Banking Corporation and Subsidiaries
■ Capital Structure Information (Consolidated Capital Ratio (International Standard))
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
Net defined benefit asset
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))
(Millions of yen, except percentages)
Year ended March 31, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
6,426,054
4,278,391
2,468,427
—
320,763
—
—
169,261
158,494
26,782
26,782
(A)
6,780,594
88,561
51,629
36,931
1,235
(11,497)
—
8,136
1,106
14,937
15
—
—
—
—
—
—
—
—
—
—
—
(B)
(C)
102,493
6,678,100
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
677,046
354,245
206,519
147,726
4,940
(45,991)
—
32,545
4,424
59,750
61
—
—
—
—
—
—
—
—
—
—
222
SMBCSMFG 2014
(Millions of yen, except percentages)
Year ended March 31, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
13,846
824,074
824,074
—
5,423
5,423
843,344
—
—
—
—
—
—
31,729
126,916
179,796
147,250
32,545
—
211,525
631,819
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
Qualifying 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)
7,309,919
—
—
—
—
3,171
1,627,622
1,614,634
12,988
35,546
10,179
25,367
488,099
461,566
26,532
2,154,439
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
223
SMBCCapital Ratio InformationSMFG 2014
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 II
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, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
—
—
25,000
100,000
(I)
(J)
(K)
139,896
139,896
164,896
1,989,543
9,299,462
119,239
13,457
70,582
20,068
(L)
54,418,600
12.27%
13.43%
17.08%
666,349
463,953
—
182,664
10,179
22,830
25,367
279,517
990,286
—
1,627,622
126,725
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, 2014
4,353,488
224
SMBCCapital Ratio InformationSMFG 2014
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)
6,096,661
4,278,391
1,869,906
—
51,636
—
—
—
146,706
33,773
33,773
(A)
6,277,140
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6,277,140
(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
—
—
—
—
—
—
—
—
225
SMBCCapital Ratio InformationSMFG 2014
(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
Qualifying 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)
226
(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
SMBCCapital Ratio InformationSMFG 2014
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
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 II
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)
—
—
—
—
—
—
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
Items
Required capital ((L) ✕ 8%)
(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
227
SMBCCapital Ratio InformationSMFG 2014
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2014)
Sumitomo Mitsui Banking Corporation and Subsidiaries
Items
(Assets)
Cash and due from 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
Net defined benefit asset
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets
(Liabilities)
Deposits
Negotiable certificates of deposit
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
Net defined benefit liability
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets
(Millions of yen)
Consolidated balance sheet as
in published financial
statements
Amount
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
32,826,744
1,248,235
522,860
3,737,208
3,420,145
6,846,729
14,572
27,092,373
69,754,391
1,790,406
218,360
1,703,060
976,903
445,686
115,847
101,929
5,632,563
(623,876)
155,824,141
94,543,064
13,973,339
4,113,650
1,708,801
5,328,427
2,374,051
4,740,484
5,101,073
451,658
302,500
4,906,764
699,329
3,145,635
55,272
4,244
14,625
814
2,025
14,858
774
402
30,739
38,276
5,632,563
147,183,378
1,770,996
2,717,397
2,468,427
(210,003)
6,746,818
938,235
(59,626)
35,675
6,779
(74,755)
846,308
157
1,047,479
8,640,763
155,824,141
6-a
2-b, 6-b
6-c
2-a
3
4-a
6-d
4-b
4-c
1-a
1-b
1-c
1-d
5
7-a
7-b
3
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
228
SMBCCapital Ratio InformationSMFG 2014 (Millions of yen)
Remarks
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Eligible Tier 1 capital instruments subject to transitional
arrangement
Ref. No.
1-a
1-b
1-c
1-d
(Millions of yen)
Remarks
Basel III Template
No.
Stockholders’ equity attributable to common shares (before adjusting
national specific regulatory adjustments (earnings to be distributed))
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as equity under applicable
accounting standards and the breakdown
—
Stockholders’ equity attributable to preferred shares with a loss
absorbency clause upon entering into effectively bankruptcy
(Appended Table)
1. Stockholders’ equity
(1) Consolidated balance sheet
Consolidated balance sheet items
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
(2) Composition of capital
Composition of capital disclosure
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: other than the above
Amount
1,770,996
2,717,397
2,468,427
(210,003)
6,746,818
Amount
6,746,818
4,278,391
2,468,427
—
—
2. Intangible assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Intangible fixed assets
Securities
of which: goodwill attributable to equity-method investees
Income taxes related to above
(2) Composition of capital
Amount
445,686
27,092,373
99,260
102,138
Composition of capital disclosure
Amount
Remarks
Software and other
Goodwill (including those equivalent)
Other intangible assets other than goodwill and mortgage servicing rights
Mortgage servicing rights
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Mortgage servicing rights that are below the thresholds for
deduction (before risk weighting)
3. Net defined benefit asset
(1) Consolidated balance sheet
Consolidated balance sheet items
Net defined benefit asset
Income taxes related to above
(2) Composition of capital
Composition of capital disclosure
Net defined benefit asset
258,148
184,658
—
—
—
—
Amount
115,847
41,159
Amount
74,687
Remarks
Remarks
1a
2
1c
31a
Ref. No.
2-a
2-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
(Millions of yen)
Remarks
(Millions of yen)
(Millions of yen)
(Millions of yen)
Basel III Template
No.
15
229
SMBCCapital Ratio InformationSMFG 2014 4. Deferred tax assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Tax effects on other intangible assets
Tax effects on net defined benefit asset
(2) Composition of capital
Amount
101,929
30,739
38,276
102,138
41,159
(Millions of yen)
Remarks
Ref. No.
4-a
4-b
4-c
(Millions of yen)
Basel III Template
No.
Composition of capital disclosure
Amount
Remarks
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences (net of related tax liability)
Deferred tax assets arising from temporary differences (net of related tax
liability)
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Deferred tax assets arising from temporary differences that
are below the thresholds for deduction (before risk weighting)
6,175
182,664
—
—
182,664
5. Deferred gains or losses on derivatives under hedge accounting
(1) Consolidated balance sheet
Consolidated balance sheet items
Net deferred losses on hedges
(2) Composition of capital
Amount
(59,626)
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Net deferred losses on hedges
(57,489)
Excluding those items whose valuation differences arising from
hedged items are recognized as “Accumulated other comprehensive
income”
10
21
25
75
Ref. No.
5
Basel III Template
No.
11
6. Items associated with investments in the capital of financial institutions
(1) Consolidated balance sheet
(Millions of yen)
Consolidated balance sheet items
Trading assets
Securities
Loans and bills discounted
Trading liabilities
Amount
6,846,729
27,092,373
69,754,391
4,740,484
Remarks
Including trading account securities and derivatives for trading assets
Including subordinated loans
Including trading account securities sold and derivatives for trading
liabilities
Ref. No.
6-a
6-b
6-c
6-d
230
SMBCCapital Ratio InformationSMFG 2014 (2) Composition of capital
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
Investments in own capital instruments
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capital of banking, financial and
insurance entities
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
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)
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Non-significant investments in the capital of Other Financial
Institutions that are below the thresholds for deduction
(before risk weighting)
Significant investments in the capital of Other Financial Institutions,
net of eligible short positions
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Additional Tier 1 capital
Tier 2 capital
Significant investments in the common stocks of Other
Financial Institutions that are below the thresholds for
deduction (before risk weighting)
7. Minority interests
(1) Consolidated balance sheet
Consolidated balance sheet items
Stock acquisition rights
Minority interests
(2) Composition of capital
Composition of capital disclosure
Amount allowed to be included in group Common Equity Tier 1
Qualifying Additional Tier 1 instruments plus related capital surplus
issued by special purpose vehicles and other equivalent entities
Amount allowed to be included in group Additional Tier 1
Qualifying Tier 2 instruments plus related capital surplus issued by
special purpose vehicles and other equivalent entities
Amount allowed to be included in group Tier 2
77
77
—
—
—
—
—
—
666,349
—
—
—
666,349
747,599
—
—
158,645
125,000
463,953
Amount
157
1,047,479
Amount
158,494
—
13,846
—
3,171
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
(Millions of yen)
(Millions of yen)
Remarks
Remarks
Ref. No.
7-a
7-b
Basel III Template
No.
5
30-31ab-32
34-35
46
48-49
Note:
Amounts in the “Composition of capital disclosure” are based on those before considering under transitional arrangements and includes “Amounts excluded under transitional arrange-
ments” disclosed in “Capital Structure Information” as well as amounts included as regulatory capital. In addition, items for regulatory purpose under transitional arrangement are
excluded from this table.
231
SMBCCapital Ratio InformationSMFG 2014 ■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2013)
Sumitomo Mitsui Banking Corporation and Subsidiaries
Items
(Assets)
Cash and due from 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
(Liabilities)
Deposits
Negotiable certificates of deposit
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
(Millions of yen)
Consolidated balance sheet as
in published financial
statements
Amount
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
10,655,801
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
89,337,354
11,978,554
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
6-a
6-b
2-b, 6-c
6-d
3
2-a
4-a
6-e
4-b
4-c
1-a
1-b
1-c
1-d
5
7-a
7-b
3
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
232
SMBCCapital Ratio InformationSMFG 2014 (Millions of yen)
Remarks
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Eligible Tier 1 capital instruments subject to transitional
arrangement
Ref. No.
1-a
1-b
1-c
1-d
(Millions of yen)
Remarks
Basel III Template
No.
Stockholders’ equity attributable to common shares (before adjusting
national specific regulatory adjustments (earnings to be distributed))
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as equity under applicable
accounting standards and the breakdown
—
Stockholders’ equity attributable to preferred shares with a loss
absorbency clause upon entering into effectively bankruptcy
(Appended Table)
1. Stockholders’ equity
(1) Consolidated balance sheet
Consolidated balance sheet items
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
(2) Composition of capital
Composition of capital disclosure
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: other than the above
Amount
1,770,996
2,717,397
1,869,906
(210,003)
6,148,297
Amount
6,148,297
4,278,391
1,869,906
—
—
2. Intangible assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Intangible fixed assets
Securities
of which: goodwill attributable to equity-method investees
Income taxes related to above
(2) Composition of capital
Amount
409,001
41,294,005
13,182
91,022
Composition of capital disclosure
Amount
Remarks
Software and other
Goodwill (including those equivalent)
Other intangible assets other than goodwill and mortgage servicing rights
Mortgage servicing rights
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Mortgage servicing rights that are below the thresholds for
deduction (before risk weighting)
3. Prepaid pension cost
(1) Consolidated balance sheet
Consolidated balance sheet items
Other assets
of which: prepaid pension cost
Income taxes related to above
(2) Composition of capital
Composition of capital disclosure
Prepaid pension cost
166,102
165,058
—
—
—
—
Amount
2,195,969
224,528
79,867
Amount
144,660
Remarks
Remarks
1a
2
1c
31a
Ref. No.
2-a
2-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
(Millions of yen)
Remarks
(Millions of yen)
(Millions of yen)
(Millions of yen)
Basel III Template
No.
15
233
SMBCCapital Ratio InformationSMFG 2014 4. Deferred tax assets
(1) Consolidated balance sheet
Consolidated balance sheet items
Deferred tax assets
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Tax effects on other intangible assets
Tax effects on prepaid pension cost
(2) Composition of capital
Amount
295,860
17,116
39,683
91,022
79,867
(Millions of yen)
Remarks
Ref. No.
4-a
4-b
4-c
(Millions of yen)
Basel III Template
No.
Composition of capital disclosure
Amount
Remarks
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences (net of related tax liability)
Deferred tax assets arising from temporary differences (net of related tax
liability)
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Deferred tax assets arising from temporary differences that
are below the thresholds for deduction (before risk weighting)
4,196
420,075
—
—
420,075
5. Deferred gains or losses on derivatives under hedge accounting
(1) Consolidated balance sheet
Consolidated balance sheet items
Net deferred losses on hedges
(2) Composition of capital
Amount
(30,781)
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Net deferred losses on hedges
(27,567)
Excluding those items whose valuation differences arising from
hedged items are recognized as “Accumulated other comprehensive
income”
6. Items associated with investments in the capital of financial institutions
(1) Consolidated balance sheet
(Millions of yen)
Consolidated balance sheet items
Trading assets
Money held in trust
Securities
Loans and bills discounted
Trading liabilities
Amount
7,619,413
14,883
41,294,005
66,665,737
6,084,053
Remarks
Including trading account securities and derivatives for trading assets
Including subordinated loans
Including trading account securities sold and derivatives for trading
liabilities
10
21
25
75
Ref. No.
5
Basel III Template
No.
11
Ref. No.
6-a
6-b
6-c
6-d
6-e
234
SMBCCapital Ratio InformationSMFG 2014 (2) Composition of capital
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
Investments in own capital instruments
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capital of banking, financial and
insurance entities
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
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)
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Non-significant investments in the capital of Other Financial
Institutions that are below the thresholds for deduction
(before risk weighting)
Significant investments in the capital of Other Financial Institutions,
net of eligible short positions
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Additional Tier 1 capital
Tier 2 capital
Significant investments in the common stocks of Other
Financial Institutions that are below the thresholds for
deduction (before risk weighting)
7. Minority interests
(1) Consolidated balance sheet
Consolidated balance sheet items
Stock acquisition rights
Minority interests
(2) Composition of capital
Composition of capital disclosure
Amount allowed to be included in group Common Equity Tier 1
Qualifying Additional Tier 1 instruments plus related capital surplus
issued by special purpose vehicles and other equivalent entities
Amount allowed to be included in group Additional Tier 1
Qualifying Tier 2 instruments plus related capital surplus issued by
special purpose vehicles and other equivalent entities
Amount allowed to be included in group Tier 2
96
96
—
—
—
—
—
—
701,863
40,443
369
21,046
640,003
716,999
—
—
157,149
125,000
434,850
Amount
120
1,453,718
Amount
146,706
—
16,217
—
2,080
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
(Millions of yen)
(Millions of yen)
Remarks
Remarks
Ref. No.
7-a
7-b
Basel III Template
No.
5
30-31ab-32
34-35
46
48-49
Note:
Amounts in the “Composition of capital disclosure” are based on those before considering under transitional arrangements and includes “Amounts excluded under transitional arrange-
ments” disclosed in “Capital Structure Information” as well as amounts included as regulatory capital. In addition, items for regulatory purpose under transitional arrangement are
excluded from this table.
235
SMBCCapital Ratio InformationSMFG 2014 Capital Ratio Information (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
■ Capital Structure Information (Nonconsolidated Capital Ratio (International Standard))
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))
(Millions of yen, except percentages)
Year ended March 31, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
5,859,721
4,042,266
2,138,218
—
320,763
—
—
179,267
—
(A)
6,038,989
23,497
—
23,497
—
(10,324)
7,659
8,136
—
29,201
—
—
—
—
—
—
—
—
—
—
—
—
(B)
(C)
58,170
5,980,818
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
717,069
93,991
—
93,991
—
(41,299)
30,639
32,545
—
116,806
—
—
—
—
—
—
—
—
—
—
—
236
SMBCCapital Ratio InformationSMFG 2014
(Millions of yen, except percentages)
Year ended March 31, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
824,074
(735)
(735)
823,339
—
—
—
—
—
—
31,846
127,384
47,865
32,545
15,319
—
79,711
743,627
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
Qualifying 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)
6,724,445
—
—
—
—
1,613,792
—
—
—
477,926
455,620
22,306
2,091,719
31a
31b
32
30
33+35
36
37
38
39
40
42
43
44
45
46
47+49
50
50a
50b
51
237
SMBCCapital Ratio InformationSMFG 2014
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 II
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: 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
Common Equity Tier 1 risk-weighted capital ratio ((C)/(L))
Tier 1 risk-weighted capital ratio ((G)/(L))
Total risk-weighted capital ratio ((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, 2014
Amounts excluded
under transitional
arrangements
Basel III
Template No.
—
—
—
—
—
—
25,000
100,000
(I)
(J)
(K)
15,319
15,319
40,319
2,051,399
8,775,845
377,653
338,806
20,068
(L)
47,940,672
12.47%
14.02%
18.30%
569,683
475,035
—
77,942
—
2,363
—
258,200
989,886
—
1,613,792
128,412
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, 2014
3,835,253
238
SMBCCapital Ratio InformationSMFG 2014
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)
5,712,886
4,042,266
1,722,256
—
51,636
—
—
—
—
(A)
5,712,886
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5,712,886
(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
—
—
—
—
—
—
—
—
—
—
—
239
SMBCCapital Ratio InformationSMFG 2014
(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
(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
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
Qualifying 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)
240
SMBCCapital Ratio InformationSMFG 2014
(Millions of yen, except percentages)
Year ended March 31, 2013
Amounts excluded
under transitional
arrangements
Basel III
Template No.
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 II
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
Common Equity Tier 1 risk-weighted capital ratio ((C)/(L))
Tier 1 risk-weighted capital ratio ((G)/(L))
Total risk-weighted capital ratio ((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)
—
—
—
—
—
—
—
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
Items
Required capital ((L) ✕ 8%)
(Millions of yen)
Year ended March 31, 2013
3,887,581
52
53
54
55
57
58
59
60
61
62
63
72
73
74
75
76
77
78
79
82
83
84
85
241
SMBCCapital Ratio InformationSMFG 2014
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2014)
Sumitomo Mitsui Banking Corporation
(Millions of yen)
Balance sheet as
in published financial
statements
Amount
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
30,133,257
557,619
455,595
643,127
20,091
873,331
3,220,669
2,060
27,317,549
63,370,678
1,698,141
1,298,327
753,279
182,351
226,615
5,767,068
(472,548)
(80,785)
135,966,434
84,137,339
14,020,505
3,265,929
1,126,120
3,390,533
1,806,866
2,400,057
5,091,006
490,873
25,000
4,501,843
698,953
2,071,738
12,112
610
1,338
13,650
29,744
37,782
5,767,068
128,889,073
1,770,996
2,481,273
2,137,235
(210,003)
6,179,502
926,836
(53,158)
24,180
897,858
7,077,360
135,966,434
6-a
6-c
2
3
6-d
4-a
4-b
1-a
1-b
1-d
Items
(Assets)
Cash and due from banks
Call loans
Receivables under resale agreements
Receivables under securities borrowing transactions
Bills bought
Monetary claims bought
Trading assets
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Reserve for possible losses on investments
Total assets
(Liabilities)
Deposits
Negotiable certificates of deposit
Call money
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
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
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets
242
SMBCCapital Ratio InformationSMFG 2014 Note: The nonconsolidated capital adequacy ratio is calculated based on the consolidated financial statements which include special purpose vehicles and other equivalent entities in
accordance with Article 15 of “Criteria for Judging Whether A Financial Institution’s Capital Is Sufficient in Light of the Assets Held, etc. under the Provision of Article 14-2
of the Banking Law” (Notification No. 19 of 2006, the Financial Services Agency). The above capital adequacy ratio is calculated using the following balance sheet accounts
reported on the consolidated financial statements.
Balance sheet account
Securities
Retained earnings
Net deferred gains on hedges
Total valuation and translation adjustments
(Millions of yen)
Amount reported on the
consolidated financial statements
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
27,303,971
2,138,218
(53,761)
896,337
6-b
1-c
5
3
243
SMBCCapital Ratio InformationSMFG 2014 (Appended Table)
1. Stockholders’ equity
(1) Balance sheet
Balance sheet items
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
(2) Composition of capital
Composition of capital disclosure
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: other than the above
Amount
1,770,996
2,481,273
2,138,218
(210,003)
6,180,485
Amount
6,180,485
4,042,266
2,138,218
—
—
(Millions of yen)
Remarks
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Eligible Tier 1 capital instruments subject to transitional
arrangement
Ref. No.
1-a
1-b
1-c
1-d
(Millions of yen)
Remarks
Basel III Template
No.
Stockholders’ equity attributable to common shares (before adjusting
national specific regulatory adjustments (earnings to be distributed))
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as equity under applicable
accounting standards and the breakdown
—
Stockholders’ equity attributable to preferred shares with a loss
absorbency clause upon entering into effectively bankruptcy
2. Intangible assets
(1) Balance sheet
Intangible fixed assets
Balance sheet items
Income taxes related to above
(2) Composition of capital
Amount
182,351
64,862
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
1a
2
1c
31a
Ref. No.
2
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
(Millions of yen)
(Millions of yen)
Basel III Template
No.
15
Software and other
Goodwill (including those equivalent)
Other intangible assets other than goodwill and mortgage servicing rights
Mortgage servicing rights
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Mortgage servicing rights that are below the thresholds for
deduction (before risk weighting)
3. Prepaid pension cost
(1) Balance sheet
Prepaid pension cost
Balance sheet items
Income taxes related to above
(2) Composition of capital
Composition of capital disclosure
Prepaid pension cost
—
117,488
—
—
—
—
Amount
226,615
80,607
Amount
146,008
Remarks
Remarks
244
SMBCCapital Ratio InformationSMFG 2014 4. Deferred tax assets
(1) Balance sheet
Balance sheet items
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Tax effects on other intangible assets
Tax effects on prepaid pension cost
(2) Composition of capital
Amount
29,744
37,782
64,862
80,607
(Millions of yen)
Remarks
Ref. No.
4-a
4-b
(Millions of yen)
Basel III Template
No.
Composition of capital disclosure
Amount
Remarks
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences (net of related tax liability)
Deferred tax assets arising from temporary differences (net of related tax
liability)
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Deferred tax assets arising from temporary differences that
are below the thresholds for deduction (before risk weighting)
—
77,942
—
—
77,942
5. Deferred gains or losses on derivatives under hedge accounting
(1) Balance sheet
Balance sheet items
Net deferred losses on hedges
(2) Composition of capital
Amount
(53,761)
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Net deferred losses on hedges
(51,624)
Excluding those items whose valuation differences arising from
hedged items are recognized as “Total valuation and translation
adjustments”
10
21
25
75
Ref. No.
5
Basel III Template
No.
11
6. Items associated with investments in the capital of financial institutions
(1) Balance sheet
(Millions of yen)
Balance sheet items
Trading assets
Securities
Loans and bills discounted
Trading liabilities
Amount
3,220,669
27,303,971
63,370,678
2,400,057
Remarks
Including trading account securities and derivatives for trading assets
Including subordinated loans
Including trading account securities sold and derivatives for trading
liabilities
Ref. No.
6-a
6-b
6-c
6-d
245
SMBCCapital Ratio InformationSMFG 2014 (2) Composition of capital
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
Investments in own capital instruments
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capital of banking, financial and
insurance entities
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
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)
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Non-significant investments in the capital of Other Financial
Institutions that are below the thresholds for deduction
(before risk weighting)
Significant investments in the capital of Other Financial Institutions,
net of eligible short positions
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Additional Tier 1 capital
Tier 2 capital
Significant investments in the common stocks of Other
Financial Institutions that are below the thresholds for
deduction (before risk weighting)
—
—
—
—
—
—
—
—
569,683
—
—
—
569,683
759,266
—
—
159,230
125,000
475,035
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
Note:
Amounts in the “Composition of capital disclosure” are based on those before considering under transitional arrangements and includes “Amounts excluded under transitional arrange-
ments” disclosed in “Capital Structure Information” as well as amounts included as regulatory capital. In addition, items for regulatory purpose under transitional arrangement are
excluded from this table.
246
SMBCCapital Ratio InformationSMFG 2014 ■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2013)
Sumitomo Mitsui Banking Corporation
Items
(Assets)
Cash and due from banks
Call loans
Receivables under resale agreements
Receivables under securities borrowing transactions
Bills bought
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)
Deposits
Negotiable certificates of deposit
Call money
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
(Millions of yen)
Balance sheet as
in published financial
statements
Amount
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
9,416,357
487,175
229,826
701,890
27,792
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
80,006,438
11,921,899
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
6-a
6-b
6-d
3
2
4-a
6-e
4-b
1-a
1-b
1-d
247
SMBCCapital Ratio InformationSMFG 2014 Note: The nonconsolidated capital adequacy ratio is calculated based on the consolidated financial statements which include special purpose vehicles and other equivalent entities in
accordance with Article 15 of “Criteria for Judging Whether A Financial Institution’s Capital Is Sufficient in Light of the Assets Held, etc. under the Provision of Article 14-2
of the Banking Law” (Notification No. 19 of 2006, the Financial Services Agency). The above capital adequacy ratio is calculated using the following balance sheet accounts
reported on the consolidated financial statements.
Balance sheet account
Securities
Retained earnings
Net deferred gains on hedges
Total valuation and translation adjustments
(Millions of yen)
Amount reported on the
consolidated financial statements
Cross-reference to
Appended Table
Reference # of Basel III common
disclosure template under the
Composition of Capital Disclosure
(Basel III Template)
41,332,289
1,722,256
22,223
788,911
6-c
1-c
5
3
248
SMBCCapital Ratio InformationSMFG 2014 (Appended Table)
1. Stockholders’ equity
(1) Balance sheet
Balance sheet items
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
(2) Composition of capital
Composition of capital disclosure
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: other than the above
Amount
1,770,996
2,481,273
1,722,256
(210,003)
5,764,523
Amount
5,764,523
4,042,266
1,722,256
—
—
(Millions of yen)
Remarks
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Including eligible Tier 1 capital instruments subject to transitional
arrangement
Eligible Tier 1 capital instruments subject to transitional
arrangement
Ref. No.
1-a
1-b
1-c
1-d
(Millions of yen)
Remarks
Basel III Template
No.
Stockholders’ equity attributable to common shares (before adjusting
national specific regulatory adjustments (earnings to be distributed))
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as equity under applicable
accounting standards and the breakdown
—
Stockholders’ equity attributable to preferred shares with a loss
absorbency clause upon entering into effectively bankruptcy
2. Intangible assets
(1) Balance sheet
Intangible fixed assets
Balance sheet items
Income taxes related to above
(2) Composition of capital
Amount
167,159
59,458
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Software and other
Goodwill (including those equivalent)
Other intangible assets other than goodwill and mortgage servicing rights
Mortgage servicing rights (net of related tax liability)
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Mortgage servicing rights that are below the thresholds for
deduction (before risk weighting)
3. Prepaid pension cost
(1) Balance sheet
Balance sheet items
Other assets
of which: prepaid pension cost
Income taxes related to above
(2) Composition of capital
Composition of capital disclosure
Prepaid pension cost
—
107,700
—
—
—
—
Amount
1,894,382
218,272
77,639
Amount
140,632
Remarks
Remarks
1a
2
1c
31a
Ref. No.
2
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
(Millions of yen)
(Millions of yen)
Basel III Template
No.
15
249
SMBCCapital Ratio InformationSMFG 2014 4. Deferred tax assets
(1) Balance sheet
Balance sheet items
Deferred tax assets
Deferred tax liabilities for land revaluation
Tax effects on other intangible assets
Tax effects on prepaid pension cost
(2) Composition of capital
Amount
185,941
39,190
59,458
77,639
(Millions of yen)
Remarks
Ref. No.
4-a
4-b
(Millions of yen)
Basel III Template
No.
Composition of capital disclosure
Amount
Remarks
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences (net of related tax liability)
Deferred tax assets arising from temporary differences (net of related tax
liability)
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Deferred tax assets arising from temporary differences that
are below the thresholds for deduction (before risk weighting)
847
283,002
—
—
283,002
5. Deferred gains or losses on derivatives under hedge accounting
(1) Balance sheet
Balance sheet items
Net deferred gains on hedges
(2) Composition of capital
Amount
22,223
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Net deferred gains on hedges
25,437
Excluding those items whose valuation differences arising from
hedged items are recognized as “Total valuation and translation
adjustments”
6. Items associated with investments in the capital of financial institutions
(1) Balance sheet
(Millions of yen)
Balance sheet items
Trading assets
Money held in trust
Securities
Loans and bills discounted
Trading liabilities
Amount
4,085,739
2,372
41,332,289
59,770,763
3,590,373
Remarks
Including trading account securities and derivatives for trading assets
Including subordinated loans
Including trading account securities sold and derivatives for trading
liabilities
10
21
25
75
Ref. No.
5
Basel III Template
No.
11
Ref. No.
6-a
6-b
6-c
6-d
6-e
250
SMBCCapital Ratio InformationSMFG 2014 (2) Composition of capital
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
Investments in own capital instruments
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Reciprocal cross-holdings in the capital of banking, financial and
insurance entities
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
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)
Common Equity Tier 1 capital
Additional Tier 1 capital
Tier 2 capital
Non-significant investments in the capital of Other Financial
Institutions that are below the thresholds for deduction
(before risk weighting)
Significant investments in the capital of Other Financial Institutions,
net of eligible short positions
Amount exceeding the 10% threshold on specified items
Amount exceeding the 15% threshold on specified items
Additional Tier 1 capital
Tier 2 capital
Significant investments in the common stocks of Other
Financial Institutions that are below the thresholds for
deduction (before risk weighting)
—
—
—
—
—
—
—
—
603,168
—
—
—
603,168
642,392
—
—
159,230
125,000
358,161
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
Note:
Amounts in the “Composition of capital disclosure” are based on those before considering under transitional arrangements and includes “Amounts excluded under transitional arrange-
ments” disclosed in “Capital Structure Information” as well as amounts included as regulatory capital. In addition, items for regulatory purpose under transitional arrangement are
excluded from this table.
251
SMBCCapital Ratio InformationSMFG 2014 Glossary
ABL
Abbreviation for Asset Based Lending of having movable assets as col-
lateral such as accounts receivable and/or inventory.
Historical simulation method
Method of simulating future fluctuations without the use of random num-
bers, by using historical data for risk factors.
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%.
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.
CCP-related exposure
Exposure to a central counterparty (CCP) that interposes itself between
counterparties to contracts traded in one or more financial markets,
becoming the buyer to every seller and the seller to every buyer and
thereby ensuring the future performance of open contracts.
Internal models approach
Methods of measuring market risk equivalent amount as the value at risk
(VaR) calculated with models determined by each bank.
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.
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.
CDS
Abbreviation for Credit Default Swap
Derivative transactions which transfer the credit risk.
Market-based approach
Method of calculating the risk assets of equity exposures, etc., by using
the simple risk weight method or internal model method.
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”)
Administrative action or written ordinance by which the Financial
Services Agency officially informs Japanese banks of regulations regard-
ing capital adequacy ratio.
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.
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.
CVA (credit value adjustment) amount
Capital charges for market-price fluctuation of derivatives transaction
due to deteriorated creditworthiness of a counterparty.
EL
Abbreviation for Expected Loss
Average loss expected to occur over the coming one year.
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.
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.
252
SMFGCapital Ratio InformationSMFG 2014 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.
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.
Standardized method
Method of calculating market risk using formula determined by the
Financial Services Agency.
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.
253
SMFGCapital Ratio InformationSMFG 2014 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, 2013 to March 31, 2014)
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.
254
SMFGSMFG 2014 ■ 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.
255
SMFGCompensationSMFG 2014
■ 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, 2013 to March 31, 2014)
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 ........
13
96
949
8,209
784
3,789
703
3,510
76
268
4
10
159
4,221
159
4,221
5
—
—
199
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥345 million in deferred compensation accrued during the fiscal year (officers: ¥76 million; employees and others: ¥268
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:
Company name
Stock option rights 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
4th series of stock acquisition rights of SMFG ...........................
August 14, 2013 to August 13, 2043
5. Payment of the following compensation, including the above, has been deferred:
Millions of yen
Type of compensation, etc.
March 31, 2014
Payment during the fiscal year
1st series of stock acquisition rights of SMFG ............................
2nd series of stock acquisition rights of SMFG ..........................
3rd series of stock acquisition rights of SMFG ...........................
71
105
165
—
—
—
■ Other Information Regarding Compensation Structures of SMFG and its Group Companies
Not applicable
256
SMFGCompensationSMFG 2014
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, 2013 to March 31, 2014)
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.
257
SMBCSMFG 2014 ■ 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.
258
SMBCSMFG 2014Compensation
■ 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, 2013 to March 31, 2014)
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 ........
20
89
1,343
7,618
1,089
3,317
961
3,095
124
211
4
10
229
4,102
229
4,102
23
—
—
199
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥335 million in deferred compensation accrued during the fiscal year (officers: ¥124 million; employees and others: ¥211
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:
Company name
Stock option rights 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
4th series of stock acquisition rights of SMFG ...........................
August 14, 2013 to August 13, 2043
5. Payment of the following compensation, including the above, has been deferred:
Millions of yen
Type of compensation, etc.
March 31, 2014
Payment during the fiscal year
1st series of stock acquisition rights of SMFG ............................
2nd series of stock acquisition rights of SMFG ..........................
3rd series of stock acquisition rights of SMFG ...........................
58
70
169
—
—
—
2. Total Amount of Compensation Paid to Officers, Employees and Others (SMBC non-consolidated, April 1, 2013 to March 31, 2014)
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 ........
20
50
1,343
3,944
1,089
2,097
961
1,881
124
211
4
4
229
1,647
229
1,647
23
—
—
199
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥335 million in deferred compensation accrued during the fiscal year (officers: ¥124 million; employees and others: ¥211
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:
Company name
Stock option rights 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
4th series of stock acquisition rights of SMFG ...........................
August 14, 2013 to August 13, 2043
5. Payment of the following compensation, including the above, has been deferred:
Millions of yen
Type of compensation, etc.
March 31, 2014
Payment during the fiscal year
1st series of stock acquisition rights of SMFG ............................
2nd series of stock acquisition rights of SMFG ..........................
3rd series of stock acquisition rights of SMFG ...........................
58
70
169
—
—
—
■ Other Information Regarding Compensation Structures of SMFG and its Group Companies
Not applicable
259
SMBCSMFG 2014Compensation
260
SMFG 2014 Corporate Data
Sumitomo Mitsui Financial Group, Inc.
■ Board of Directors, Corporate Auditors, and Executive Officers (as of June 30, 2014)
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.
Atsuhiko Inoue
Director
Audit Dept.
Kozo Ogino
Director
Corporate Risk Management Dept.
Jun Ohta
Director
Subsidiaries & Affiliates Dept., Transaction Business Planning Dept.
■ SMFG Organization (as of June 30, 2014)
Shigeru Iwamoto
Director (outside)
Yoshinori Yokoyama
Director (outside)
Kuniaki Nomura
Director (outside)
CORPORATE AUDITORS
Koichi Minami
Corporate Auditor
Shin Kawaguchi
Corporate Auditor
Kazuhiko Nakao
Corporate Auditor
Ikuo Uno
Corporate Auditor (outside)
Satoshi Itoh
Corporate Auditor (outside)
Rokuro Tsuruta
Corporate Auditor (outside)
EXECUTIVE OFFICERS
Yasuyuki Kawasaki
Senior Managing Director
Global Business Planning Dept.
Fumiaki Kurahara
Senior Managing Director
Securities Business Dept.
Shareholders’
Meeting
Board of Directors
Auditing Committee
Risk Management Committee
Compensation Committee
Nominating Committee
Group Strategy
Committee
Management
Committee
Public Relations Dept.
Corporate Planning Dept.
Investor Relations Dept.
Group CSR Dept.
Financial Accounting Dept.
IT Planning Dept.
Human Resources Dept.
General Affairs Dept.
Group Cost Control Dept.
Corporate Auditors/
Board of Corporate
Auditors
Office of Corporate Auditors
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.
261
SMFG 2014 Sumitomo Mitsui Banking Corporation
* Executive Officers
■ Board of Directors, Corporate Auditors, and Executive Officers (as of June 30, 2014)
BOARD OF DIRECTORS
CORPORATE AUDITORS
Chairman of the Board
Teisuke Kitayama
President and CEO
Takeshi Kunibe*
Director
Koichi Miyata
Vice Chairmans of the Board
Yoshihiko Shimizu
Hiroshi Minoura
Deputy Presidents
Ken Kubo*
Head of Retail Banking Unit
Consumer Finance & Transaction Business Dept.
President of SMFG Card & Credit, Inc.
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
Hidetoshi Furukawa*
Co-Head of Wholesale Banking Unit
Head of Global Corporate Banking Division
Senior Managing Directors
Masahiro Fuchizaki*
IT Planning Dept., Operations Planning Dept., Operations Support
Dept., Inter-Market Settlement Dept.
Director of The Japan Research Institute, Limited
Nobuaki Kurumatani*
Public Relations Dept., Corporate Planning Dept., Financial
Accounting Dept.
Masaki Tachibana*
Co-Head of Wholesale Banking Unit (Planning Dept., Wholesale
Banking Unit, Strategic Corporate Business Dept., Public & Financial
Institutions Banking Dept., Wholesale Banking Unit)
Head of Corporate Banking Division
Atsuhiko Inoue*
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.
Toshiyuki Teramoto*
Deputy Head of Wholesale Banking Unit (Credit Administration Dept.,
Corporate Credit Dept.)
Corporate Research Dept.
Deputy Head of Investment Banking Unit (Trust Services Dept.)
Manabu Narita*
Head of Private Advisory Division and Corporate Advisory Division
Directors (outside)
Shigeru Iwamoto
Yoshinori Yokoyama
Kuniaki Nomura
262
Hiroki Yaze
Corporate Auditor
Makoto Hiura
Corporate Auditor
Ikuo Uno
Corporate Auditor (outside)
Satoshi Itoh
Corporate Auditor (outside)
Rokuro Tsuruta
Corporate Auditor (outside)
Koichi Minami
Corporate Auditor
EXECUTIVE OFFICERS
Senior Managing Directors
Jun Ohta
Subsidiaries & Affiliates Dept.
Transaction Business Division
Yasuyuki Kawasaki
Co-Head of International Banking Unit (Planning Dept., International
Banking Unit, Emerging Markets Business Division, Asia Pacific,
North-east Asia)
Fumiaki Kurahara
Head of Investment Banking Unit
Securities Business Dept.
Makoto Takashima
Co-Head of International Banking Unit (Europe, Middle East and
Africa, Americas)
Managing Directors
Chan Chi Keung, Chris
General Manager, Corporate Banking Dept., Greater China
Kazunori Okuyama
Deputy Head of International Banking Unit, Wholesale 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
Hitoshi Ishii
Deputy Head of Retail Banking Unit, Wholesale Banking Unit
Head of Small and Medium Enterprises Banking Division
Seiji Sato
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts.
III, VIII, XI, and XII)
Masayuki Shimura
Head of The Asia Pacific Division and Emerging Markets Business
Division
Katsunori Tanizaki
IT Planning Dept., Operations Planning Dept., Operations Support
Dept., Inter-Market Settlement Dept.
Takehisa Ikeda
Nagoya Corporate Banking Division (Nagoya Corporate Banking
Dept.)
Head of Nagoya Middle Market Banking Division
SMFG 2014
Yukihiko Onishi
General Manager, Corporate Planning Dept.
Gotaro Michihiro
Osaka Corporate Banking Division (Osaka Corporate Banking Depts.
I, II, and III)
Takafumi Yamahiro
Deputy Head of Wholesale Banking Unit (in charge of West Japan)
Noboru Rachi
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts.
I, II, IX, and X)
Koichi Noda
Head of The Americas Division
Shosuke Mori
General Manager, Planning Dept., International Banking Unit
Masahiko Oshima
Head of Europe, Middle East and Africa Division
CEO of Sumitomo Mitsui Banking Corporation Europe Limited
Naoki Ono
General Manager, Planning Dept., Wholesale Banking Unit
Kimio Matsuura
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts.
IV, V, VI and VII)
Toshikazu Yaku
General Manager, Human Resources Dept.
Directors
Mitsuru Ono
Deputy Head of International Banking Unit (Credit Depts., Americas
Division and Europe, Middle East and Africa Division, Asia Credit
Dept., Credit Management Dept., International Banking Unit)
Hajime Kunisaki
Deputy Head of Retail Banking Unit (in charge of East Japan)
Hisanori Kokuga
President of Sumitomo Mitsui Banking Corporation (China) Limited
Taneki Ono
Deputy Head of Investment Banking Unit
Corporate Planning Dept., Securities Business Dept.
Isao Kitatsuji
Deputy Head of Wholesale Banking Unit (Credit Dept. II, Wholesale
Banking Unit)
Deputy Head of Retail Banking Unit (Credit Dept., Retail Banking Unit)
Osamu Nakano
Head of Shibuya Middle Market Banking Division and Yokohama
Middle Market Banking Division
Takashi Inagaki
Deputy Head of Wholesale Banking Unit (Credit Dept. I, Wholesale
Banking Unit)
Deputy Head of Retail Banking Unit (Credit Dept., Retail Banking Unit)
Hiroyasu Kitagawa
General Manager, Subsidiaries & Affiliates Dept.
Takashi Jokura
Deputy Head of Retail Banking Unit (in charge of West Japan)
Naoki Tamura
General Manager, Credit & Investment Planning Dept.
Hiroshi Fujikawa
General Manager, Osaka Corporate Banking Dept. l
Ryohei Kaneko
General Manager, Operations Planning Dept.
Yoshio Morijiri
Head of Higashinihon Daiichi Middle Market Banking Division
Atsushi Oku
Deputy Head of Retail Banking Unit (in charge of East Japan)
Toshikazu Takeichi
Head of Osaka Daiichi Middle Market Banking Division and
Osaka Daini Middle Market Banking Division
Yoshihiro Horikawa
General Manager, Corporate Risk Management Dept.
Mitsuhiro Akiyama
General Manager, Tokyo Corporate Banking Dept. XI
Toshihiro Isshiki
General Manager, Consumer Finance & Transaction Business Dept.
Keiji Kakumoto
Head of Kyoto Hokuriku Middle Market Banking Division and General
Manager, Kyoto Corporate Business Office-I
Atsushi Takada
Head of Shinjuku Middle Market Banking Division and Saitama
Ikebukuro Middle Market Banking Division
Haruyuki Nagata
General Manager, Financial Accounting Dept.
Ryuji Nishisaki
Deputy Head of Emerging Markets Business Division
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 The Asia
Pacific Division
Akira Ochiai
Head of Higashinihon Daini Middle Market Banking Division
Akio Koizumi
General Manager, Nihonbashi Corporate Business Office
Eiji Omori
General Manager, Tokyo Corporate Banking Dept. IV
Noburu Kato
General Manager, Investment Banking Dept., Asia
Toshiyuki Tatsuta
(Director without portfolio)
Akihiro Fukutome
General Manager, Tokyo Corporate Banking Dept. VI
Kenichi Hosomi
General Manager, Planning Dept., Europe, Middle East and Africa
Division
Tetsuro Imaeda
General Manager, Singapore Branch
Nobuyuki Kawabata
General Manager, Planning Dept., Americas Division
Toru Sawada
General Manager, General Affairs Dept.
Kengo Nakagawa
General Manager, Shinjuku Corporate Business Office-I
Toru Nakashima
General Manager, Planning Dept., Retail Banking Unit
Teiko Kudo
Unit Leader, Growth Industry Cluster Dept.
William Karl
General Manager, Real Estate Finance Dept., Americas Division
Stanislas Roger
General Manager, Maritime Asset Finance Dept., Europe, Middle East
and Africa Division
263
SMFG 2014 ■ SMBC Organization (as of June 30, 2014)
Internal Audit Unit
Internal Audit Dept.
Credit Review Dept.
Small and Medium Enterprises Banking Division
Area Main Office
Branch
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.
Global Human Resources Dept.
Human Resources Development Dept.
Quality Management Dept.
Customer Relations Dept.
Consumer Finance & Transaction Business Dept.
Securities Business Dept.
Retail
Banking Unit
Wholesale
Banking Unit
Risk Management Unit
Corporate Risk Management Dept.
Risk Management Information Dept.
Credit & Investment Planning Dept.
Credit Portfolio Management Dept.
International
Banking Unit
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.
Inter-Market Settlement Dept.
Treasury Unit
Investment
Banking Unit
Shareholders’
Meeting
Board of
Directors
Management
Committee
Corporate Auditors/
Corporate Auditors/
Board of Corporate Auditors
Board of Corporate Auditors
Office of Corporate Auditors
264
Planning Dept., Retail Banking Unit
Life Planning Business Dept.
Wealth Management Business Dept.
Retail Compliance Dept.
Next W-ing Project Dept.
Retail Facilitating Financing Dept.
Retail Human Resources Dept.
Business Promotion Dept., Retail Banking Unit
Small and Medium Enterprises Planning Dept.
Financial Products Dept., Retail Banking Unit
Area Support Dept.
Loan Dept., Retail Banking Unit
Area Support Dept.
Credit Dept., Retail Banking Unit
Strategic Corporate Business Dept.
Planning Dept., Wholesale Banking Unit
Middle Market Facilitating Financing Dept.
South China Dept.
Global Corporate Banking Dept.
Public & Financial Institutions Banking Dept.,
Wholesale Banking Unit
Real Estate Finance Dept.*1
Corporate Credit Dept.
Structured Finance Credit Dept.
Credit Dept., I, Wholesale Banking Unit
Credit Dept., II, Wholesale Banking Unit
Credit Administration Dept.
Planning Dept., International Banking Unit
IT & Business Administration Planning Dept.
Asia Pacific Training Dept.
Aviation Capital Dept.
Asia Strategy 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
Global Aircraft Credit Dept.
Risk Management Dept., Europe Division
Planning Dept., Asia Pacific Division
Asia Credit Dept., International Banking Unit
Risk Management Dept., Asia Pacific Division
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.*2
Structured Finance Dept.
Shipping Finance Dept.
Global Securities Business Dept.
Financial Solution Dept.
Real Estate Finance Dept.*1
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
Corporate Banking Division
Middle Market Banking Division
Corporate Business Office
Global Corporate Banking Division
Tokyo Corporate Banking Division
Corporate Banking Dept.
Osaka Corporate Banking Division
Nagoya Corporate Banking Division
Americas Division
Europe Division
Asia Pacific Division
Consumer Loan Promotion Office
Apartment House Loan Promotion Office
Loan Promotion & Support Office
Loan Support Office
Private Banking Dept.
Remote marketing Dept.
Call Center
Consumer Finance Promotion Office
Business Support Office
Business Promotion Office
Financial Development Office
Credit Business Office
Real Estate Corporate Business Office
Public Institutions Business Office
Global Institutional Banking Dept.
Global Client Business Dept.
Global Corporate Investment Dept.
Global Trade Finance Dept.
Global Supply Chain Finance Dept.
Global Aircraft Finance Dept.
Branches/Representative Offices
in North East Asia
Departments of Americas Division
Departments of Europe Division
Branches/Representative Offices
in Asia Pacific Division
*1 Belongs to both Investment Banking Unit and Wholesale Banking Unit.
*2 Belongs to both Investment Banking Unit and Wholesale Banking Unit. (Corporate Advisory Division)
Transaction Business Division
Transaction Business Planning Dept.
Asset Finance Dept.
Transaction Banking Dept.
Global Transaction Banking Dept.
Global Advisory Dept.
Private Advisory Division
Private Advisory Business Dept.
Private Banking Planning Dept.
Testamentary Trust Dept.
Corporate Employees Business Dept.
Defined Contribution Dept.
Corporate Advisory Division
Advisory Dept. I
Advisory Dept. II
Advisory Dept. III
Corporate Research Dept.
Growth Industry Cluster Dept.*2
Branch Service Office
Head/Main Service Office
Public Institutions Operations Office
SMFG 2014 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.
Global Human Resources Dept.
Human Resources Development Dept.
Quality Management Dept.
Customer Relations Dept.
Consumer Finance & Transaction Business Dept.
Securities Business Dept.
Retail
Banking Unit
Wholesale
Banking Unit
Risk Management Unit
Corporate Risk Management Dept.
Risk Management Information Dept.
Credit & Investment Planning Dept.
Credit Portfolio Management Dept.
International
Banking Unit
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.
Inter-Market Settlement Dept.
Treasury Unit
Investment
Banking Unit
Shareholders’
Meeting
Board of
Directors
Management
Committee
Corporate Auditors/
Corporate Auditors/
Board of Corporate Auditors
Board of Corporate Auditors
Office of Corporate Auditors
Planning Dept., Retail Banking Unit
Life Planning Business Dept.
Wealth Management Business Dept.
Retail Compliance Dept.
Next W-ing Project Dept.
Retail Facilitating Financing Dept.
Retail Human Resources Dept.
Business Promotion Dept., Retail Banking Unit
Small and Medium Enterprises Planning Dept.
Financial Products Dept., Retail Banking Unit
Area Support Dept.
Loan Dept., Retail Banking Unit
Area Support Dept.
Credit Dept., Retail Banking Unit
Strategic Corporate Business Dept.
Planning Dept., Wholesale Banking Unit
Middle Market Facilitating Financing Dept.
South China Dept.
Global Corporate Banking Dept.
Public & Financial Institutions Banking Dept.,
Wholesale Banking Unit
Real Estate Finance Dept.*1
Corporate Credit Dept.
Structured Finance Credit Dept.
Credit Dept., I, Wholesale Banking Unit
Credit Dept., II, Wholesale Banking Unit
Credit Administration Dept.
Planning Dept., International Banking Unit
IT & Business Administration Planning Dept.
Asia Pacific Training Dept.
Aviation Capital Dept.
Asia Strategy 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
Global Aircraft Credit Dept.
Risk Management Dept., Europe Division
Planning Dept., Asia Pacific Division
Asia Credit Dept., International Banking Unit
Risk Management Dept., Asia Pacific Division
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.*2
Structured Finance Dept.
Shipping Finance Dept.
Global Securities Business Dept.
Financial Solution Dept.
Real Estate Finance Dept.*1
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
Small and Medium Enterprises Banking Division
Area Main Office
Corporate Banking Division
Middle Market Banking Division
Branch
Consumer Loan Promotion Office
Apartment House Loan Promotion Office
Loan Promotion & Support Office
Loan Support Office
Private Banking Dept.
Remote marketing Dept.
Call Center
Consumer Finance Promotion Office
Business Support Office
Business Promotion Office
Corporate Business Office
Financial Development Office
Credit Business Office
Real Estate Corporate Business Office
Public Institutions Business Office
Global Corporate Banking Division
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.
Global Aircraft Finance Dept.
Branches/Representative Offices
in North East Asia
Departments of Americas Division
Departments of Europe Division
Branches/Representative Offices
in Asia Pacific Division
*1 Belongs to both Investment Banking Unit and Wholesale Banking Unit.
*2 Belongs to both Investment Banking Unit and Wholesale Banking Unit. (Corporate Advisory Division)
Transaction Business Division
Transaction Business Planning Dept.
Asset Finance Dept.
Transaction Banking Dept.
Global Transaction Banking Dept.
Global Advisory Dept.
Private Advisory Division
Private Advisory Business Dept.
Private Banking Planning Dept.
Testamentary Trust Dept.
Corporate Employees Business Dept.
Defined Contribution Dept.
Corporate Advisory Division
Advisory Dept. I
Advisory Dept. II
Advisory Dept. III
Corporate Research Dept.
Growth Industry Cluster Dept.*2
Branch Service Office
Head/Main Service Office
Public Institutions Operations Office
265
SMFG 2014 Principal Subsidiaries and Affiliates (as of March 31, 2014)
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
THE MINATO BANK, LTD.
Kansai Urban Banking Corporation
The Japan Net Bank, Limited*1
SMBC Trust Bank Ltd.
SMBC Guarantee Co., Ltd.
SMFG Card & Credit, Inc.
SAKURA CARD CO., LTD.
SMM Auto Finance, Inc.
SMBC Finance Service Co., Ltd.
SAKURA KCS Corporation
Financial Link Co., Ltd.
SMBC Venture Capital Co., Ltd.
SMBC Consulting Co., Ltd.
Japan Pension Navigator Co., Ltd.
SMBC Loan Business Planning Co., Ltd.
SMBC Servicer Co., Ltd.
SMBC Electronic Monetary Claims Recording
Co., Ltd.
SMBC Principal Finance Co., Ltd.
SMBC Loan Adviser Co., Ltd.
SMBC Business Support Co., Ltd.*2
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 Market Service Co., Ltd.*3
SMBC Loan Administration and Operations Service Co., Ltd.
SMBC Property Research Service Co., Ltd.
Issued Capital
(Millions of Yen)
1,770,996
15,000
10,000
27,270
34,000
82,843
140,737
10,000
27,484
47,039
37,250
7,550
187,720
49,859
7,438
7,700
71,705
2,054
10
500
1,100
1,600
100,010
1,000
500
100
10
10
90
10
10
100
30
30
20
40
70
10
10
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
—
—
—
—
—
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, Installment
Mar. 20, 1962
Consumer loans
Nov. 1, 2002
System engineering, data processing,
management consulting, and economic research
(46.44) 45.09 (1.34)
Sep. 6, 1949
Commercial banking
(60.18)
49.38 (0.35)
Jul. 1, 1922
Commercial banking
(61.43)
(100)
(100)
100
(100)
(56)
(100)
61.43
100
Sep. 19, 2000
Commercial banking
Feb. 25, 1986
Trust service and commercial banking
0
(99.99)
Jul. 14, 1976
Credit guarantee
—
100
41
—
Oct. 1, 2008
Business management
Feb. 23, 1983
Credit card services
Sep. 17, 1993
Automotive financing
Dec. 5, 1972
Collecting agent and factoring
(50.21)
27.53 (5.00)
Mar. 29, 1969
System engineering and data processing
(100)
(40)
100
Apr. 1, 2004
Data processing service and e-trading consulting
0
(40)
Sep. 22, 2005
Venture capital
(100)
50
(1.63)
May 1, 1981
Management consulting and seminar
organizer
(69.71)
69.71
Sep. 21, 2000
Defined contribution plan administrator
(100)
(100)
(100)
(100)
100
100
100
100
Apr. 1, 2004
Management support services
Mar. 11, 1999
Servicer
Apr. 16, 2009
Electronic monetary claims recording
Mar. 8, 2010
Investments for corporate revitalization and other
related investments
(100)
0
(100)
Apr. 1, 1998
Consulting and agency services for
consumer loans and non-life insurance
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
100
Jul. 1, 2004
SME business agency services
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
Feb. 3, 2003
Banking clerical work
Feb. 3, 2003
Banking clerical work
Feb. 1, 1984
Banking clerical work
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 The Japan Net Bank, Limited had 41.16% of voting rights on April 30, 2014 and was changed from a consolidated subsidiary of Mitsui Sumitomo Financial
Group to an affiliate.
*2 On April 1, 2014, a merger was effected with SMBC as the surviving company and SMBC Business Support Co., Ltd. as the absorbed company.
*3 On April 1, 2014, a merger was effected with SMBC as the surviving company and SMBC Market Service Co., Ltd. as the absorbed company.
266
SMFG 2014 ■ 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
Indonesia
Malaysia
SMBC Leasing and Finance, Inc.
U.S.A.
SMBC Aviation Capital Limited
SMBC Rail Services, LLC
SMBC Nikko Securities America,
Inc.
SMBC Nikko Capital Markets
Limited
SMBC Capital Markets, Inc.
SMBC Financial Services, Inc.
Ireland
U.S.A.
U.S.A.
U.K.
U.S.A.
U.S.A.
SMBC Cayman LC Limited*4
Cayman Islands
SMBC MVI SPC
SMBC DIP Limited
SFVI Limited
Cayman Islands
Cayman Islands
British Virgin Islands
SMBC International Finance N.V.
Curaçao
US$3,200 million
CNY7.0 billion
US$80.786 million
C$344 million
R$667.806 million
RUB6.4 billion
Rp2,873.9 billion
MYR700 million
US$4,350
US$187 million
US$40.911 million
US$216
US$654 million
US$100
US$300
US$500
US$195 million
US$8 million
US$3,000
US$200,000
SMFG Preferred Capital USD 1
Limited
SMFG Preferred Capital GBP 1
Limited
SMFG Preferred Capital JPY 1
Limited
SMFG Preferred Capital USD 3
Limited
SMFG Preferred Capital GBP 2
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 JPY 1
Limited
Cayman Islands
US$649.491 million
Cayman Islands
£73.676 million
Cayman Islands
¥135,000 million
Cayman Islands
US$1,350 million
Cayman Islands
£250 million
Cayman Islands
¥428,000 million
Cayman Islands
¥392,900 million
Cayman Islands
US$662.647 million
Cayman Islands
£78.121 million
Cayman Islands
¥137,000 million
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
(90)
30
Aug. 14, 1997
Leasing
(100)
0
(100)
May 11, 2011
Leasing
(100)
76.05 (23.95)
Aug. 8, 1990
Securities, investments
(100)
(100)
(100)
(100)
(100)
(100)
(100)
(100)
100
100
100
100
100
100
100
(100)
(100)
(100)
100
Mar. 13, 1990
Derivatives and investments,
securities services
90
(10)
Dec. 4, 1986
Derivatives and investments
100
100
100
100
100
100
—
—
—
—
—
—
—
100
100
100
Aug. 8, 1990
Feb. 7, 2003
Sep. 9, 2004
Mar. 16, 2005
Investments,
investment advisor
Credit guarantee,
bond investment
Loans, buying/
selling of monetary claims
Loans, buying/
selling of monetary claims
Jul. 30, 1997
Investments
Jun. 25, 1990
Finance
Nov. 28, 2006
Finance
Nov. 28, 2006
Finance
Jan. 11, 2008
Finance
Jul. 8, 2008
Finance
Oct. 25, 2007
Finance
Nov. 3, 2008
Finance
Aug. 12, 2009
Finance
Nov. 28, 2006
Finance
Nov. 28, 2006
Finance
Jan. 11, 2008
Finance
*4 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.
267
SMFG 2014 Company Name
Country
Issued Capital
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
SMBC Preferred Capital USD 3
Limited
SMBC Preferred Capital GBP 2
Limited
SMBC Preferred Capital JPY 2
Limited
Sumitomo Mitsui Finance Dublin
Limited
Ireland
Sakura Finance Asia Limited
Hong Kong
SMBC Capital India Private Limited India
SMBC Leasing Investment LLC
SMBC Capital Partners LLC
U.S.A.
U.S.A.
SMBC Derivative Products Limited U.K.
Cayman Islands
US$1,358 million
Cayman Islands
£251.5 million
Cayman Islands
¥435,600 million
0
0
0
0
0
0
0
0
0
(100)
(100)
(100)
(100)
(100)
100
100
100
100
100
Jul. 8, 2008
Finance
Oct. 25, 2007
Finance
Nov. 19, 2008
Finance
Sep. 19, 1989
Finance
Oct. 17, 1977
Investments
(100)
99.99
(0.00)
Apr. 3, 2008
Advisory services
(100)
(100)
(100)
0
(100)
Apr. 7, 2003
Investments in leasing
100
Dec. 18, 2003
Holding and trading securities
0
(100)
Apr. 18, 1995
Derivatives and investments
US$18 million
US$65.5 million
Rs400 million
US$622 million
US$10,000
US$200 million
■ Principal Affiliates
Company Name
PT Bank Tabungan Pensiunan Nasional Tbk
Issued Capital
(Millions of Yen)
Rp116,805
million
Vietnam Export Import Commercial Joint Stock
Bank
VND12,526.947
billion
Sumitomo Mitsui Auto Service Company, Limited
POCKET CARD CO., LTD.
JSOL CORPORATION
Sakura Information Systems Co., Ltd.
Daiwa SB Investments Ltd.
Sumitomo Mitsui Asset Management
Company, Limited
6,950
14,374
5,000
600
2,000
2,000
China Post & Capital Fund Management Co., Ltd. CNY100 million
Daiwa Securities SMBC Principal
Investments Co., Ltd.
100
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
0
0
0
0
0
0
0
0
(40.00)
40.00
Feb. 5, 1958
Commercial banking
(15.07)
15.07
May 24, 1989
Commercial banking
33.99
—
Feb. 21, 1981
Leasing
(35.54)
35.54
May 25, 1982
Credit card services
(50)
(49)
43.96
(40)
(24)
(40)
—
49
—
40
24
40
Jul. 3, 2006
System engineering and data processing
Nov. 29, 1972
System engineering and data processing
Apr. 1, 1999
Dec. 1, 2002
Investment advisory and investment trust
management
Investment advisory and investment trust
management
Apr. 24, 2012
Investment management
Feb. 1, 2010
Investments, fund management
268
SMFG 2014 International Directory (as of June 30, 2014)
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
Dalian Representative Office
Senmao Building 9F, 147
Zhongshan Lu, Dalian 116011,
The People’s Republic of China
Tel: 86 (411) 8370-7873
Taipei Branch
3F, Walsin Lihwa Xinyi Building,
No. 1 Songzhi Road, Xinyi District,
Taipei 110, Taiwan
Tel: 886 (2) 2720-8100
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
Singapore Branch
3 Temasek Avenue #06-01,
Centennial Tower, Singapore
039190, Republic of
Singapore
Tel: 65-6882-0001
Labuan Branch
Level 12 (B&C), Main Office
Tower, Financial Park Labuan,
Jalan Merdeka, 87000 Labuan,
Federal Territory, Malaysia
Tel: 60 (87) 410955
Hanoi Branch
1105, 11th Floor, Pacific Place
Building, 83B Ly Thuong Kiet
Street, Hanoi, Vietnam
Tel: 84 (4) 3946-1100
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
Bangkok Branch
8th-10th Floor, Q.House Lumpini
Building, 1 South Sathorn Road,
Tungmahamek, Sathorn, Bangkok
10120, Thailand
Tel: 66 (2) 353-8000
Chonburi Branch
Harbor Office 14th Floor, 4/222
Moo. 10 Sukhumvit Road,
Tungsukla, Sriracha, Chonburi
20230, Thailand
Tel: 66 (38) 400-700
Manila Representative Office
20th Floor, Rufino Pacific Tower,
6784 Ayala Avenue, Makati City,
Metro Manila, The Philippines
Tel: 63 (2) 841-0098/9
Sydney Branch
Level 35, The Chifley Tower,
2 Chifley Square, Sydney, NSW
2000, Australia
Tel: 61 (2) 9376-1800
Labuan Branch
Kuala Lumpur Office
Level 51, Vista Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2168-1700
Ho Chi Minh City Branch
15th Floor, Times Square Building,
22-36 Nguyen Hue Street, District 1,
Ho Chi Minh City, Vietnam
Tel: 84 (8) 3520-2525
Perth Branch
Level 19, Exchange Plaza,
2 The Esplanade, Perth, Western
Australia 6000, Australia
Tel: 61 (8) 9492-4900
New Delhi Branch
13th Floor, Hindustan Times House,
18-20, Kasturba Gandhi Marg, New
Delhi 110001, India
Tel: 91 (11) 4768-9111
New Delhi Representative Office
B-14/A, Qutab Institutional Area,
Katwaria Sarai, New Delhi 110016,
India
Tel: 91 (11) 4670-9945
Ulaanbaatar Representative Office
Unit 1010b, 10F, Central Tower,
2 Sukhbaatar Square, 8th Khoroo,
Sukhbaatar District, Ulaanbaatar,
14200, Mongolia
Tel: 976-7011-8950
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
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
Sumitomo Mitsui Banking
Corporation (China) Limited
Shanghai Pilot Free Trade Zone
Sub-Branch
1F 7, 8 Building, No. 88, Ma Ji
Road, China (Shanghai) Pilot Free
Trade Zone, Shanghai 200131,
The People’s Republic of China
Tel: 86 (21) 2067-0200
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
269
SMFG 2014
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
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
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
Sumitomo Mitsui Banking
Corporation (China) Limited
Suzhou Branch
12F, SND International Commerce
Tower, No.28 Shishan Road, Suzhou
New District, Suzhou, Jiangsu
215011, The People’s Republic of
China
Tel: 86 (512) 6606-6500
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
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
270
Sumitomo Mitsui Banking
Corporation (China) Limited
Kunshan Sub-Branch
Room 2001-2005, Taiwan Business
Association International Plaza,
No. 399 Qianjin East Road,
Kunshan, Jiangsu 215300,
The People's Republic of China
Tel: 86 (512) 3687-0588
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
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
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
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
PT Bank Sumitomo Mitsui
Indonesia
Summitmas II, 10th Floor, JI.
Jendral Sudirman Kav. 61-62,
Jakarta 12190, Indonesia
Tel: 62 (21) 522-7011
PT Bank Tabungan Pensiunan
Nasional Tbk
Menara Cyber-2, 24-25th Floor, Jl.
H.R. Rasuna Said Block X-5 no.13,
Jakarta Selatan 12950, Indonesia
Tel: 62 (21) 300-26200
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
SMBC SSC Sdn. Bhd.
Level 50, Vista Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2168-1600
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
SMBC Metro Investment
Corporation
20th Floor, Rufino Pacific Tower,
6784 Ayala Avenue, Makati City,
Metro Manila, The Philippines
Tel: 63 (2) 811-0845
Vietnam Export Import
Commercial Joint Stock Bank
The 8th Floor - Vincom Center, 72
Le Thanh Ton and 45A Ly Tu Trong
Street, Ben Nghe Ward, District 1,
Ho Chi Minh City, Vietnam
Tel: 84 (8) 3821-0056
SBCS Co., Limited
10th Floor, Q. House Lumpini
Building, 1 South Sathorn Road,
Tungmahamek, Sathorn,
Bangkok 10120, Thailand
Tel: 66 (2) 677-7270~5
PT. SBCS Indonesia
Summitmas II, 19th Floor, Jl. Jendral
Sudirman Kav. 61-62, Jakarta
12190, Indonesia
Tel: 62 (21) 252-3711
SMFG 2014 BSL Leasing Co., Ltd.
19th Floor, Sathorn City Tower,
175 South Sathorn Road,
Thungmahamek, Sathorn,
Bangkok, 10120, Thailand
Tel: 66 (2) 670-4700
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
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
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
Sumitomo Mitsui Finance and
Leasing (Singapore) Pte. Ltd.
152 Beach Road,
21-05 Gateway East,
189721 Singapore
Tel: 65-6224-2955
Sumitomo Mitsui Finance and
Leasing (Hong Kong) Ltd.
Units 4206, 42/F, 248 Queen’s Road
East, Wanchai, Hong Kong
Tel: 852-2523-4155
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
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
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
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
Sumitomo Mitsui Finance and
Leasing (China) Co., Ltd.
Chengdu Branch
Unit 1305, YanLord, Landmark,
No.1, Section 2, Renmin South
Road, Chengdu, The People’s
Republic of China
Tel: 86 (28) 8691-7181
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
PT. SMFL Leasing Indonesia
Summitmas II, 12th Floor, Jl.Jendral
Sudirman Kav. 61-62 Jakarta
Selatan 12190, Indonesia
Tel: 62 (21) 520-2083
Sumitomo Mitsui Auto Leasing &
Service (Thailand) Co., Ltd.
161, Nantawan Building, 17th Floor,
Rajdamri Road, Lumpinee,
Pathumwan, Bangkok 10330,
Thailand
Tel: 66-2252-9511
Summit Auto Lease Australia Pty
Ltd.
Unit 7, 38-46 South Street
Rydalmere, NSW 2116 Australia
Tel: 61 (2) 9638-7833
SMAS Auto Leasing India Private
Limited
10th Floor, E-1, Videocon Tower,
Jhandewalan Extension, Rani Jhansi
Road, New Delhi, India
Tel: 91 (11) 4308-0151
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
Liang Jing Co., Ltd.
8FI, No.6, Sec 3, Min Chuan E. Rd.,
Taipei, Taiwan 104, R.O.C.
Tel: 886 (2) 2515-1598
PROMISE (THAILAND) CO., LTD.
12th, 15th Floor, Capital Tower, All
Seasons Place, 87/1 Wireless Road,
Lumpini, Phatumwan, Bangkok
10330, Thailand
Tel: 66 (2) 655-8574
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
PROMISE (SHENYANG) CO., LTD.
5F, No.1 Yuebin Street, Shenhe
District, Shenyang,
Liaoning Province 110013,
The People’s Republic of China
Tel: 86 (24) 2250-6200
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
271
SMFG 2014 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
PROMISE (CHONGQING) CO., LTD.
38F, Xinhua International Mansion,
No.27, Minquan Road, Yuzhong
District, Chongqing, The People's
Republic of China
Tel: 86 (23) 6037-5299
PROMISE (CHENGDU) CO., LTD.
Level 18, Minyoun Financial Plaza,
No.35 Zidong Section Dongda Street,
Jinjiang District, Chengdu,
The People's Republic of China
Tel: 86 (28) 6528-5099
PROMISE (WUHAN) CO., LTD.
14F, Block A, Pingan International
Financial Building, 216 Gongzheng
Road, Wuchang, Wuhan, Hubei,
The People's Republic of China
Tel: 86 (27) 8711-6399
PROMISE ASSET MANAGEMENT
(TAIWAN) CO., LTD
8F No.6, Sec 3, Min Chuan E. Rd.,
Taipei, Taiwan 104, R.O.C.
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
SMBC Nikko Capital Markets
Limited (Sydney Office)
Level 35, The Chifley Tower, 2 Chifley
Square, Sydney, NSW 2000, Australia
Tel: 61 (2) 9376-1895
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
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
San Francisco Branch
555 California Street, Suite 3350,
San Francisco, CA 94104, U.S.A.
Tel: 1 (415) 616-3000
Houston Representative Office
Two Allen Center, 1200 Smith
Street, Suite 1140, Houston, Texas
77002, U.S.A.
Tel: 1 (713) 277-3500
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
Bogota Representative Office
Carrera 9 #113-52, Oficina 808,
Bogotá D.C., Colombia
Tel: 57 (1) 619-7200
Lima Representative Office
Avenida Canaval y Moreyra 380,
Oficina 702, San Isidro, Lima 27, Peru
Tel: 51 (1) 200-3600
Santiago Representative Office
Av. El Golf 82, Of. 1001, Las Condes,
Santiago, Chile
Tel: 56 (2) 2896-8440
SMBC Principal Subsidiaries/
Affiliates
SMFG Network
Manufacturers Bank
515 South Figueroa Street,
Los Angeles, CA 90071, U.S.A.
Tel: 1 (213) 489-6200
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
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
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
SMBC Leasing and Finance, Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-5200
SMBC Rail Services LLC
300 S. Riverside Plaza, Suite 1925,
Chicago, IL 60606, U.S.A.
Tel: 1 (312) 559-4800
SMBC Nikko Securities America,
Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-5300
JRI America, Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-4200
272
SMFG 2014
Sumitomo Mitsui Finance and
Leasing Company, Limited
New York Branch
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-4844
Europe, Middle-East and Africa
SMBC Branches and
Representative Offices
Düsseldorf Branch
Prinzenallee 7, 40549 Düsseldorf,
Federal Republic of Germany
Tel: 49 (211) 36190
Brussels Branch
Neo Building, Rue Montoyer 51,
Box 6, 1000 Brussels, Belgium
Tel: 32 (2) 551-5000
Dubai Branch
Building One, 5th Floor, Gate
Precinct, Dubai International
Financial Centre, PO Box 506559
Dubai, United Arab Emirates
Tel: 971 (4) 428-8000
Madrid Representative Office
Villanueva, 12-1. B, 28001 Madrid,
Spain
Tel: 34 (91) 576-6196
Prague Representative Office
International Business Centre,
Pobrezni 3,186 00 Prague 8,
Czech Republic
Tel: 420 (224) 832-911
Bahrain Representative Office
No.406 & 407 (Entrance 3, 4th
Floor) Manama Centre,
Government Road, Manama,
State of Bahrain
Tel: 973-17223211
Tehran Representative Office
First Floor, No. 17, Haghani
Expressway (north side),
Between Modarres & Africa,
Tehran 1518858136,
Islamic Republic of Iran
Tel: 98 (21) 8888-4301/4302
Abu Dhabi Representative Office
Level 4, Block B, Al Mamoora,
Al Muroor Road, Abu Dhabi, United
Arab Emirates
Tel: 971 (2) 656-5810
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
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
Johannesburg Representative
Office
Building Four, First Floor,
Commerce Square,
39 Rivonia Road, Sandhurst,
Sandton 2196, South Africa
Tel: 27 (11) 219-5300
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
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
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
Sumitomo Mitsui Banking
Corporation Europe Limited
Milan Branch
Via della Spiga 30/ Via Senato 25,
20121 Milan, Italy
Tel: 39 (02) 7636-1700
Sumitomo Mitsui Banking
Corporation Europe Limited
Amsterdam Branch
World Trade Center, Tower D Level
12, Strawinskylaan 1733, 1077 XX
Amsterdam, The Netherlands
Tel: 31 (20) 718-3888
Sumitomo Mitsui Banking
Corporation Europe Limited
Dublin Branch
IFSC House, IFSC, Dublin 1, Ireland
Tel: 353 (1) 859-9300
Sumitomo Mitsui Banking
Corporation Europe Limited
Prague Branch
International Business Centre,
Pobrezni 3 186 00 Prague 8,
Czech Republic
Tel: 420 (295) 565-800
SMBC Nikko Capital Markets
Limited
One New Change, London EC4M
9AF, U.K.
Tel: 44 (20) 3527-7000
SMBC Derivative Products Limited
One New Change, London
EC4M 9AF, U.K.
Tel: 44 (20) 3527-7000
ZAO Sumitomo Mitsui Rus Bank
Presnenskaya naberezhnaya,
house 10, block C, Moscow,
123317 Russian Federation
Tel: 7 (495) 287-8200
Sumitomo Mitsui Finance Dublin
Limited
La Touche House, I.F.S.C.,
Custom House Docks, Dublin 1,
Ireland
Tel: 353 (1) 670-0066
JRI Europe, Limited
99 Queen Victoria Street, London
EC4V 4EH, U.K.
Tel: 44 (20) 7406-2700
SMBC Aviation Capital Limited
IFSC House, IFSC, Dublin 1, Ireland
Tel: 353 (1) 859-9000
273
SMFG 2014
*SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
*SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
Overseas service network (as of June 30, 2014)
Overseas service network (as of June 30, 2014)
Total: 69
Total: 69
(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
SMBCE* Dublin Branch
Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
SMBCE* Dublin Branch
Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
SMBCE* Amsterdam
Branch
SMBCE* Amsterdam
Branch
Brussels Branch
Brussels Branch
ZAO Sumitomo Mitsui Rus Bank
ZAO Sumitomo Mitsui Rus Bank
Sumitomo Mitsui
Sumitomo Mitsui
Banking Corporation
Banking Corporation
Europe Limited
Europe Limited
SMBC Nikko Capital
SMBC Nikko Capital
Markets Limited
Markets Limited
SMBCE* Paris Branch
SMBCE* Paris Branch
SMBCE* Prague Branch
SMBCE* Prague Branch
Düsseldorf Branch
Düsseldorf Branch
SMBCE* Milan Branch
SMBCE* Milan Branch
Ulaanbaatar Representative Office
Ulaanbaatar Representative Office
Madrid Representative Office
Madrid Representative Office
Istanbul Representative Office
Istanbul Representative Office
Shenyang Branch
Shenyang Branch
SMBC Rail Services LLC
SMBC Rail Services LLC
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
Abu Dhabi Representative Office
Abu Dhabi Representative Office
New Delhi Branch
New Delhi Branch
Johannesburg Representative Office
Johannesburg Representative Office
GLOBAL NETWORK
GLOBAL NETWORK
Asia and Oceania
Asia and Oceania
SMBC Nikko Capital Markets Limited (Sydney Office)
SMBC Nikko Capital Markets Limited (Sydney Office)
Santiago Representative Office
Santiago Representative Office
Perth Branch
Perth Branch
Sydney Branch
Sydney Branch
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
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
Chongqing Branch
Chongqing Branch
Office
Office
Seoul
Seoul
Branch
Branch
Kunshan Sub-Branch
Kunshan Sub-Branch
Head Office (Shanghai)
Head Office (Shanghai)
Shanghai Puxi Sub-Branch
Shanghai Puxi Sub-Branch
Shanghai Pilot Free
Shanghai Pilot Free
Trade Zone Sub-Branch
Trade Zone Sub-Branch
Hangzhou
Hangzhou
Branch
Branch
Guangzhou
Guangzhou
Branch
Branch
Taipei Branch
Taipei Branch
Hanoi Branch
Hanoi Branch
Shenzhen Branch
Shenzhen Branch
Yangon
Yangon
Representative
Representative
Office
Office
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 Branch
Chonburi Branch
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
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.
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
■ Brussels Branch
■ Brussels 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 Canada
■ Sumitomo Mitsui Banking Corporation of 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
■ SMBC Rail Services LLC
■ SMBC Rail Services LLC
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
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Dublin Branch
Europe Limited Dublin Branch
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Prague Branch
Europe Limited Prague Branch
■ Düsseldorf Branch
■ Düsseldorf Branch
■ Madrid Representative Office
■ Madrid Representative Office
■ ZAO Sumitomo Mitsui Rus Bank
■ ZAO Sumitomo Mitsui Rus Bank
■ Sumitomo Mitsui Finance Dublin Limited
■ Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
SMBC Aviation Capital Limited
■ Dubai Branch
■ Dubai Branch
■ Abu Dhabi Representative Office
■ Abu Dhabi Representative Office
■ 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
Kunshan Sub-Branch
Changshu 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
Shanghai Pilot Free Trade Zone Sub-Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ 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
■ Sumitomo Mitsui Banking Corporation (China) Limited
Shanghai Pilot Free Trade Zone Sub-Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
Kunshan Sub-Branch
■ Dalian Representative Office
■ Dalian Representative Office
■ Hong Kong Branch
■ Hong Kong Branch
SMBC Capital Markets (Asia) Limited
■ Taipei Branch
■ Seoul Branch
■ Ulaanbaatar Representative Office
■ Singapore Branch
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Labuan Branch
■ Taipei Branch
■ Seoul Branch
■ Ulaanbaatar Representative Office
■ Singapore Branch
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Labuan Branch
SMBC Capital Markets (Asia) Limited
SBCS Co., Limited
■ Labuan Branch Kuala Lumpur Office
■ Labuan Branch Kuala Lumpur Office
SMBC SSC Sdn. Bhd.
SMBC SSC Sdn. Bhd.
■ 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 Branch
■ Manila Representative Office
SMBC Metro Investment Corporation
■ Sydney Branch
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
■ PT Bank Tabungan Pensiunan Nasional Tbk
■ New Delhi Branch
■ Perth Branch
■ PT Bank Sumitomo Mitsui Indonesia
■ Chonburi Branch
■ Manila Representative Office
SMBC Nikko Capital Markets Limited (Sydney Office)
SMBC Metro Investment Corporation
PT. SBCS Indonesia
■ Sydney Branch
Tianjin Branch
Suzhou Branch
Hangzhou 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
■ Sumitomo Mitsui Banking Corporation (China) Limited
Tianjin Binhai Sub-Branch
Tianjin Binhai Sub-Branch
Chongqing 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
■ 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
274
SMFG 2014 *SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
*SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
SMBCE* Dublin Branch
SMBCE* Dublin Branch
Sumitomo Mitsui Finance Dublin Limited
Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
SMBC Aviation Capital Limited
SMBCE* Amsterdam
SMBCE* Amsterdam
Branch
Branch
Brussels Branch
Brussels Branch
SMBCE* Paris Branch
SMBCE* Paris Branch
SMBCE* Prague Branch
SMBCE* Prague Branch
Düsseldorf Branch
Düsseldorf Branch
SMBCE* Milan Branch
SMBCE* Milan Branch
Sumitomo Mitsui
Sumitomo Mitsui
Banking Corporation
Banking Corporation
Europe Limited
Europe Limited
SMBC Nikko Capital
SMBC Nikko Capital
Markets Limited
Markets Limited
ZAO Sumitomo Mitsui Rus Bank
ZAO Sumitomo Mitsui Rus Bank
Madrid Representative Office
Madrid Representative Office
Istanbul Representative Office
Istanbul Representative Office
Ulaanbaatar Representative Office
Ulaanbaatar 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
Abu Dhabi Representative Office
Abu Dhabi Representative Office
Johannesburg Representative Office
Johannesburg Representative 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
■ Labuan Branch Kuala Lumpur Office
■ Labuan Branch Kuala Lumpur Office
Head Office (Shanghai)
Head Office (Shanghai)
Suzhou Industrial Park Sub-Branch
Suzhou Industrial Park Sub-Branch
SMBC SSC Sdn. Bhd.
SMBC SSC Sdn. Bhd.
■ 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
■ 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
Shanghai Pilot Free Trade Zone Sub-Branch
Shanghai Pilot Free Trade Zone 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
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Dalian Representative Office
■ Dalian Representative Office
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
Changshu Sub-Branch
Changshu Sub-Branch
Shanghai Puxi Sub-Branch
Shanghai Puxi Sub-Branch
Kunshan Sub-Branch
Kunshan Sub-Branch
■ Hong Kong Branch
■ Hong Kong Branch
SMBC Capital Markets (Asia) Limited
SMBC Capital Markets (Asia) Limited
■ Taipei Branch
■ Taipei Branch
■ Seoul Branch
■ Seoul Branch
■ Ulaanbaatar Representative Office
■ Ulaanbaatar Representative Office
■ Singapore Branch
■ Singapore Branch
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
Tianjin Binhai Sub-Branch
Tianjin Binhai Sub-Branch
■ Labuan Branch
■ Labuan Branch
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Hanoi Branch
■ Hanoi Branch
■ 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 Branch
■ Chonburi Branch
■ Manila Representative Office
■ Manila Representative Office
SMBC Metro Investment Corporation
SMBC Metro Investment Corporation
■ Sydney Branch
■ Sydney Branch
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, 2014)
Overseas service network (as of June 30, 2014)
Total: 69
Total: 69
(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
SMBC Rail Services LLC
SMBC Rail Services LLC
Beijing Branch
Beijing Branch
Manufacturers Bank
Manufacturers Bank
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.
Sumitomo Mitsui Banking Corporation of Canada
Sumitomo Mitsui Banking Corporation of Canada
New Delhi Branch
New Delhi Branch
Yangon
Yangon
Representative
Representative
Office
Office
Bangkok Branch
SBCS Co., Limited
Bangkok Branch
SBCS Co., Limited
Tianjin Branch
Tianjin Binhai Sub-Branch
Tianjin Branch
Tianjin Binhai Sub-Branch
Dalian
Dalian
Representative
Representative
Office
Office
Suzhou Branch
Suzhou Industrial Park Sub-Branch
Changshu Sub-Branch
Suzhou Branch
Suzhou Industrial Park Sub-Branch
Changshu Sub-Branch
Chongqing Branch
Chongqing Branch
Hangzhou
Hangzhou
Branch
Branch
Seoul
Seoul
Branch
Branch
Kunshan Sub-Branch
Kunshan Sub-Branch
Head Office (Shanghai)
Head Office (Shanghai)
Shanghai Puxi Sub-Branch
Shanghai Puxi Sub-Branch
Shanghai Pilot Free
Shanghai Pilot Free
Trade Zone Sub-Branch
Trade Zone Sub-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
Chonburi Branch
Chonburi Branch
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
Perth Branch
Perth Branch
Sydney Branch
Sydney Branch
SMBC Nikko Capital Markets Limited (Sydney Office)
SMBC Nikko Capital Markets Limited (Sydney Office)
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 Canada
■ Sumitomo Mitsui Banking Corporation of 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
■ SMBC Rail Services LLC
Cayman Branch
■ SMBC Rail Services LLC
Europe Limited Paris Branch
Europe Limited Milan 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
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Dublin Branch
Europe Limited Dublin Branch
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Prague Branch
Europe Limited Prague Branch
■ Düsseldorf Branch
■ Düsseldorf Branch
■ Brussels Branch
■ Brussels Branch
■ Madrid Representative Office
■ Madrid Representative Office
■ ZAO Sumitomo Mitsui Rus Bank
■ ZAO Sumitomo Mitsui Rus Bank
■ Sumitomo Mitsui Finance Dublin Limited
■ Sumitomo Mitsui Finance Dublin Limited
SMBC Aviation Capital Limited
SMBC Aviation Capital Limited
■ Dubai Branch
■ Dubai Branch
■ Abu Dhabi Representative Office
■ Abu Dhabi Representative Office
■ 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
275
SMFG 2014 276
SMFG 2014 www.smfg.co.jp/english
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