ANNUAL REPORT
YEAR ENDED MARCH 31, 2015
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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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6
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8
• Group Companies.................................................. 18
• Financial Highlights ................................................ 21
• Financial Review .................................................... 23
• Risk Management .................................................. 31
• Corporate Social Responsibility (CSR) .................... 48
• Initiatives for Enhancing Customer Satisfaction (CS)
and Quality ........................................................... 50
• Corporate Governance .......................................... 51
• Internal Audit System ............................................. 52
• Compliance ........................................................... 53
• Environmental Preservation Initiatives ..................... 55
• Social Contribution Activities .................................. 59
• Human Resources ................................................. 63
• Financial Section and Corporate Data .................... 71
Financial Data.......................................................................... 72
Capital Ratio Information ......................................................... 186
Compensation......................................................................... 253
Corporate Data ...................................................................... 259
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 2015
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 2015
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 2014 (fiscal year ended March 2015) and our management
policies going forward.
Principal Initiatives in Fiscal 2014
In fiscal 2014, the Japanese economy continued to
recover moderately after a temporary dip in economic
activity due to a slump in consumer demand after the
rush of purchasing ahead of the consumption tax rate
hike in April 2014. Outside Japan, although emerg-
ing countries lacked growth momentum, economies
continued to recover led by developed countries. The
U.S. economy continued to improve driven by domes-
tic demand, and the European economies moderately
recovered despite sovereign debt issues.
Against this backdrop, we implemented the follow-
ing initiatives to achieve the management goals of our
medium-term management plan for the three years from
fiscal 2014 to fiscal 2016, which we announced in May
2014.
First, we fully revised the domestic business structure
of Sumitomo Mitsui Banking Corporation (SMBC) in April
2014 for the first time since its establishment, with the
aim of enhancing our capability to address our clients’
needs, which are becoming more diverse and sophisti-
cated, and to deliver higher value-added services.
Specifically, for large corporate clients, we enhanced
our business structure with the aim of quickly making
proposals tailored to their needs, responding to their
businesses becoming global and more cross-border.
Measures we implemented at SMBC include increasing
the number of Corporate Banking Departments, intensify-
ing the collaboration with SMBC Nikko Securities, further
promoting a seamless operation between its domestic
and international offices, and leveraging our extensive
knowledge of various industries on a global basis.
For medium and small-sized corporate clients, we
actively extended loans and tailored our services to
meet the financial needs of each individual company. In
addition, with the aim of quickly and comprehensively
addressing the needs of business owners both as a cor-
porate manager and as an individual, we established a
new area marketing structure, Area Main Offices, within
SMBC. Furthermore, we launched a “Japan Growth
Strategy Cross-Functional Team” as an organization-wide
body, in order to contribute to the economic growth of
Japan by supporting clients in sectors, such as agricul-
ture, healthcare, energy and infrastructure, that will under-
pin the Japanese economy five and ten years from now.
Regarding individual clients, we endeavored to
increase the number of accounts and assets under man-
agement through initiatives such as expanding the busi-
ness model, where SMBC and SMBC Nikko Securities
Koichi Miyata
President
Sumitomo Mitsui Financial Group, Inc.
2
SMFG 2015
introduce each other’s clients, to all offices and broaden-
ing our lineup of investment products. Further, we set up
official accounts on social networking services to grow
and strengthen our client base.
Growth
In the international business, we have been trans-
forming our business model to be less dependent on
lending volume and utilize our asset more efficiently in
Profitability
order to achieve sustainable growth. To this end, we
promoted cross-selling of deposits, foreign exchange,
derivatives and bond underwriting, in addition to lend-
Soundness
Progress of financial targets in the medium-term
management plan (SMFG consolidated basis)
FY3/14
FY3/15
—
+2.8%
13.8%
11.2%
1.4%
1.1%
54.2%
55.7%
10.3%
12.0%
Growth rate of
Consolidated
gross profit
Consolidated
ROE
Consolidated
net income
RORA
Consolidated
overhead ratio
Common
Equity Tier 1
Capital Ratio*2
FY3/17
Targets
Around
+15%*1
Around
10%
Around
1%
In the mid
50%
Around
10%
ing, to non-Japanese corporate clients by bolstering our
capability to meet their needs. We also accelerated the
seamless operation between the domestic and inter-
national offices and responded quickly to the needs of
Japanese corporate clients; expanded our global office
network into markets where future growth is expected;
and strengthened our relationship with leading finan-
cial institutions in each country, including investing in
ACLEDA Bank in Cambodia and acquiring additional
shares of The Bank of East Asia in Hong Kong.
*1 FY3/17 targeted consolidated gross profit increase in comparison with
FY3/14 figure
*2 Basel III fully-loaded basis. Based on the definition as of March 31, 2019
Vision for the next decade and three-year
management goals (announced in May 2014)
Vision for the next decade
We will become a global financial group that, by earning the highest trust of
our customers, leads the growth of Japan and the Asian region
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
In addition, for institutional investors, we established
and enhanced a group-wide framework to originate and
Three-year management goals
❶ Develop and evolve client-centric business models for main domestic and international businesses
❷ Build a platform for realizing Asia-centric operations and capture growth opportunities
❸ Realize sustainable growth of top-line profit while maintaining soundness and profitability
❹ Upgrade corporate infrastructure to support next stage of growth
distribute financial products through measures such as
SMBC and SMBC Nikko Securities creating a structure
for regional banks to jointly finance overseas project
financing led by SMBC. We also promoted the “SMBC”
brand by SMBC becoming a special sponsor of the
Nippon Series professional baseball championship.
As a result of these initiatives, we made a good
start in the first year of our medium-term management
plan. Regarding the financial results of Sumitomo Mitsui
Financial Group (SMFG), the consolidated ordinary
profit was ¥1,321.2 billion and consolidated net income
was ¥753.6 billion, exceeding the targets announced
in November 2014 by ¥121.2 billion and ¥53.6 billion
respectively. Moreover, we are on track to achieving all
the financial targets of the plan.
Takeshi Kunibe
President and CEO
Sumitomo Mitsui Banking Corporation
3
SMFG 2015
Management Policies for Fiscal 2015
Our basic policy for fiscal 2015, the second year of the
medium-term management plan, is as follows: “acceler-
ate key initiatives in accordance with management goals,
produce results, and move reform forward vigorously”
and “anticipate changes and be proactive, make a dif-
ference with SMFG/SMBC’s on-the-ground capabilities,
and create business opportunities.” We will continue to
firmly contribute to the Japanese economy as a lead-
ing financial institution in Japan, as various measures
for economic revitalization are progressed by public and
private sectors. At the same time, we will move initiatives
forward for our sustainable growth, including corporate
governance. There is a movement toward strengthen-
ing and improving corporate governance in Japan, as
demonstrated by the implementation of the Corporate
Governance Code for listed companies in June 2015.
We will increase our corporate value over the mid to
long term by further strengthening and improving the
management structure for transparent, fair, timely and
decisive decision-making through initiatives including
increasing the number of SMFG’s outside directors in
line with our policy that one-third or more of the board
comprise of independent outside directors with diverse
knowledge and experience.
◎ Initiatives to achieve the management goals
(1) Develop and evolve client-centric business models
for main domestic and international businesses
We will enhance our capability to address the increas-
ingly diverse and sophisticated needs of our clients by
creating a stronger franchise both domestically and
internationally. We will achieve this by fine tuning our
domestic business which was developed through the
restructuring last fiscal year and fully implementing the
transformation of our international business model.
For large corporate clients, we will continue to
strengthen the collaboration between SMBC and SMBC
Nikko Securities and accelerate the seamless operation
of domestic and international offices, in an aim to deliver
higher quality services to a wider range of clients.
For medium and small-sized corporate clients, we
aim to enhance our capability to meet the financial needs
of each individual company by reinforcing our on-the-
ground capabilities through the development of talented
professionals capable of supporting their wide-ranging
needs. As for business owners, we strive to provide
added value by accelerating initiatives to comprehen-
sively address their needs, both as a corporate man-
ager and as an individual, through one-stop-services.
Moreover, we will proactively contribute to the growth of
the Japanese economy by providing financial services
leveraging our extensive knowledge and information on
agriculture, healthcare, energy, infrastructure, and other
growth industries led by the Japan Growth Strategy
Cross-Functional Team. We will also sponsor the Tokyo
Olympic and Paralympic Games in 2020 as a Gold
Partner in the “Banking” category as one of our initiatives
to contribute to the growth of the Japanese economy.
For individual clients, we aim to fully meet their diver-
sifying asset management needs by further promoting
the collaboration between SMBC and SMBC Nikko
Securities. We will also strengthen our capability to meet
the needs of affluent individuals through the retail banking
business of Citibank Japan, scheduled to be acquired by
SMBC Trust Bank in November 2015 subject to regula-
tory approvals. Further, we aim to enhance our presence
and services targeting mass-affluent clients with SMBC
advertising products and services and disseminating
information through social networking services, and
enhancing services utilizing smartphones. In the con-
sumer finance business, we will further strengthen the
collaboration between SMBC and SMBC Consumer
Finance, and develop the business on a group basis.
For globally operating non-Japanese corporate cli-
ents, we will enhance our products providing capability
and promoting collaboration among offices in western
countries and Asia in order to strengthen relationships
and promote cross-selling.
In addition to the above, for institutional investors,
we will continue to build and strengthen the group-wide
framework for originating and distributing financial prod-
ucts. Regarding information and communication technol-
ogy (ICT) and transaction banking business, important
4
SMFG 2015
underpinnings for our business base, we aim to offer new
Specifically, we believe the diversity of human capital
leading-edge services by enhancing our capabilities inter-
is a source of competitiveness and will promote appoint-
nally and utilizing external resources, including forging
ments of locally hired officers and women in managerial
alliances with leading ICT players.
positions. We will also further strengthen and improve
the structure for transparent, fair, timely and decisive
(2) Build a platform for realizing Asia-centric operations
decision-making, with due attention to the needs and
and capture growth opportunities
perspectives of stakeholders, including our shareholders,
In order to enhance our Asia business, which is the
clients, staff (including directors and corporate auditors)
principal strategy for the whole group, we will steadily
and local communities, and increase our corporate value
build a business platform in Asia by prioritizing the alloca-
over the mid to long term, in accordance with the corpo-
tion of resources, including human capital and system
rate governance guideline we created in May 2015.
infrastructure, to the region. Specifically, we plan to
strengthen our capability to provide comprehensive ser-
vices by centralizing and enhancing transaction banking
◎ Capital and shareholder return policies
We aim to achieve a sustainable increase in shareholder
product sales functions and solution-providing functions
value by realizing higher profitability and growth by
within Asia. Through these initiatives, we will intensify
investing for the future. We also intend to enhance share-
our group’s presence in Asia. We will also accelerate
holder return by implementing measures such as raising
our multi-franchise strategy, which is to firmly establish
dividend per share in a stable manner. In line with this
a full-scale commercial banking franchise in Asia, as
policy, the ordinary dividend per share on common stock
highlighted by our continued collaboration in the retail
was ¥140 in fiscal 2014, a year-on-year increase of ¥20.
business with Bank Tabungan Pensiunan Nasional in
For fiscal 2015, for SMFG, we forecast consolidated
Indonesia, our equity method affiliate.
ordinary profit of ¥1,240 billion and consolidated profit
attributable to owners of parent of ¥760 billion, and
(3) Realize sustainable growth of top-line profit while
an annual dividend per share of ¥150, a year-on-year
maintaining soundness and profitability
increase of ¥10, and the half of which, ¥75, will be paid
Underpinned by the stable financial base, we aim to
as an interim dividend.
realize the sustainable growth of our consolidated gross
profit by continuing to develop and evolve our business
We believe that we can meet your expectations
models and allocate resources into growth fields, while
through the initiatives we have described. We hope that
focusing on maintaining financial soundness and high
we can continue to count on your understanding and
profitability, as well as complying with the tightening of
support in the years ahead.
global financial regulations.
August 2015
(4) Upgrade corporate infrastructure to support the
next stage of growth
We intend to further reinforce our management platform
to support our business as it develops and grows glob-
ally, through initiatives such as strengthening corporate
governance, upgrading our risk management system,
enhancing our responsiveness to comply with domestic
and international laws and regulations, and promoting
diversity.
Koichi Miyata
President
Sumitomo Mitsui
Financial Group, Inc.
Takeshi Kunibe
President and CEO
Sumitomo Mitsui
Banking Corporation
5
SMFG 2015
Business Overview
■ Consumer Banking
the SMFG Group, will continue to provide high-value services to
clients.
SMFG group companies work cooperatively to provide better
and highly appreciated services for individual clients. SMBC
strives to advance its business model daily in order to develop
the leading comprehensive financial service business most
trusted by clients by appropriately accommodating individual
clients’ diversifying financial needs reflected with the accelerated
trend of “Saving to Investment,” the times of major inheritance
and changes in clients’ lifestyles.
Asset Management
SMBC has implemented the invest-
ment trusts portfolio of “SMBC Fund
Selection” by classifying
into
four
categories for enabling clients to select
appropriate investment trusts according
to their needs. Furthermore, we offer
publicly-offered investment trusts in
Japan which appropriately accommodate
clients’ diverse asset management needs by selecting the funds
invested in preferred securities issued by financial institutions of
advanced countries. We have also started to offer an automatic
deposit service for foreign currency in order to appropriately
accommodate the needs for such deposits. We accommodate
clients’ needs by implementing measures to offer preferential
interest rates. Working with SMBC Nikko Securities, SMBC
continues to offer its wide-ranging clients intermediary services
for financial products in areas such as foreign-currency bonds.
Further as for “SMBC Fund Wrap” (the discretionary
management through investment trust taking into account the
clients’ particular needs for their asset management), we are
proactively promoting as a product appropriate for asset man-
agement by implementing measures to offer preferential inter-
est rates for clients purchasing the product. As for the Nippon
Individual Savings Account program (“NISA”), the tax exemption
system for small sum of investments and “Junior NISA,” the
tax exemption system for minors which is planned to be newly
established after fiscal 2015, we provide information on NISA
to clients who would request receiving such information. SMBC
and SMBC Nikko Securities strive to provide products and ser-
vices able to accommodate individual clients’ diverse needs by
taking advantage of both companies’ knowhow for the consult-
ing business accumulated over the years and through integra-
tion of their clients base and office networks. In July 2014, we
began implementing at all branches a new business promotion
model (“bank-securities integration model”) which makes maxi-
mum utilization of the respective characteristics of SMBC and
SMBC Nikko Securities. In February 2015, we began offering
the “bank-securities integrated asset formation package.” We,
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. We offer permanent life insurance which
ensures the security for death and disability for a lifetime and
enables savings for the future, and also individual variable annu-
ity 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. Further, as a response to the tax exemption measure
of the capital transfer tax applicable to a lump sum transfer of
educational funds, we began offering ordinary savings accounts
(tax exempt account for educational fund transfer) by enhancing
our product portfolio for further accommodating clients’ needs
for leaving and accumulating assets to their family. In addition,
we meet the inheritance-related needs of clients by offering
testamentary 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. Furthermore, since March 2015, we began
offering the “SMBC
Reverse Mortgage”
service in order to
flexibly support the
“life after retirement”
of elderly clients.
Consumer Loans and
Settlement
SMBC began offering the “Housing Loan
with Joint Life Insurance (Cross Support)”
since April 2015.
As dual-income couples of younger
generations are increasing, this is a prod-
uct to exempt the balance of housing loan
repayments in the event of death of either
spouse of such couples.
In addition, in the event that the borrower of our housing
loan is diagnosed by a medical doctor with the predefined
6
SMFG 2015
conditions of eight major illnesses (three potentially fatal and
five serious and chronic illnesses) or that the client’s house was
damaged by a natural disaster; we offer to provide the “Housing
Loan with Eight Major Illnesses Security Insurance” which fully
exempts repayments for the loan or the “Housing Loan with
Special Provision for Partial Exemption for Payments” which
partially exempts repayments depending on the degree of
damage, respectively. Further, we offer the “Life Event Support
Package” which is the card loan offering special interest rates
especially made for clients who plan to take housing loans, in
order to accommodate such clients’ diverse financial needs for
such as childbirth, education or renovation after the home pur-
chase. We are working to develop products and enhance our
services in order to accommodate the diverse needs 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 ser-
vices to provide consultations for clients. For housing finance for
clients affected by the Great East Japan Earthquake, we offer
housing loans with special rates, and we also offer our existing
clients consultation services on more flexible loan repayments
for those who have already taken out SMBC housing loans.
We continue to provide meticulous support for, and promptly
and appropriately respond to, clients who have difficulties
making housing loan repayments. As for SMBC unsecured
consumer loans (card loans), guaranteed by SMBC Consumer
Finance Co., Ltd., the total loan balance as of March 2015
has exceeded ¥520 billion due to the steady increase of loans.
Further, in April 2015, a new series of television commercials
started to be on air. These television commercials were made
for increasing awareness of SMBC’s card loans by simply focus-
ing the telephone number, 0120-923-923.
Topics
◆ Enhancement of the SMBC brand
SMBC launched a new promotional campaign for fiscal
2014 for enhancing the “SMBC” brand by targeting clients
primarily in younger generations by putting up the campaign
key words of “For Our Future.” These television commercials
depict images of young people who just graduated and
started their job, aspiring for their bright future with great
expectations but also feeling uneasy. In September 2014,
SMBC opened its official accounts with Facebook and LINE,
as a branding means taking advantage of the social media
which is increasingly utilized by mostly younger generations,
for creating new contacts with clients and fostering a feeling
of friendliness for clients to further develop transactions with
SMBC. Concurrently, SMBC developed
its original image character, called,
“Midosuke”; and as of March 31,
2015, the number of fans for Facebook
has reached 150,000 and the number
of friends for LINE has exceeded
5,680,000, having the most number of
registered followers among Japanese
banks.
◆ Implementation of the Opening-Account
Application
SMBC implemented the “Opening-Account Application” for
smartphones in February 2015 for improving convenience
when opening an account by enabling clients to apply to
open an ordinary savings account without having to visit a
branch and to receive a cash card at home. We will further
enhance our response to transactions made by smartphones
while providing meticulous services appropriate to clients’
needs.
◆ Revision of ATM Services
In April 2015, SMBC made changes to its ATM services to
improve convenience by charging no fees all day even for
deposits made at ATMs located at SMBC branches after
business hours, and increasing the number of ATMs in
operation for 24 hours a day, changing the standard business
hours to from 7 a.m. to 12 midnight.
We continue to improve and enhance our ATM services
according to lifestyles of clients.
◆ SMBC received “COPC® CSP Standards” in
March 2015 for call center operations.
SMBC was the first Japanese bank to be certified with the
“COPC® CSP Standards” which is the international quality
assurance standard for center operations for improving cli-
ents’ satisfaction and realizing efficiency of call center opera-
tions. The COPC standards measure and certify promptness
and accuracy of services provided to clients and efficiency of
center operations for achieving and maintaining at excellent
level for clients’ satisfaction.
7
SMFG 2015 ■ Services for Corporate Clients
Providing funding to medium-sized
corporations and SMEs
SMBC established its “Area” system in April 2014 in order to
enhance its response to the needs for comprehensive corporate
and consumer banking transactions of medium-sized and SME
clients, including increasing business succession needs. The
“Area” system enables to us to provide specialized services
taking advantage of the respective networks of SMFG/SMBC
group companies, in addition to providing consultation services
to corporate and individual clients. In addition to providing loans
for business, SMFG/SMBC group companies provide meticu-
lous support for clients’ diverse needs, including consultations
on overseas business development or business-matching, busi-
ness succession, corporate system reform; and consultations
for the individual client’s asset management, loans, inheritance,
and asset succession.
SMBC continues to work to accommodate diverse needs of
medium-sized corporations and SMEs clients and their owners
who continue to 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 group companies including SMBC Venture
Capital Co., Ltd. and SMBC Nikko Securities, we provide solu-
tions 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 computing and life science businesses through the
“Growth Potential Evaluation Loan” which was launched for the
purpose of strengthening lending to clients of growing compa-
nies. SMBC and the NEC group jointly established a venture
fund in April 2012 for the purpose of supporting technology
venture companies since their establishment; and in July 2013,
we invested in the SMBC Agricultural Fund investing in agricul-
tural companies.
Furthermore, SMBC and the Group continue to support
growing companies while cooperatively working with diverse
external entities by establishing business cooperation with
Japan Finance Corporation in July 2014 for the support of
growing companies.
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 2015,
the IPO Navigator is registered by clients of approximately
1,000 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 posi-
tively by participants who plan to make an initial public offering.
In fiscal 2014, we held seminars in the three cities of Tokyo,
Osaka, and Nagoya; and Mr. Yoshiyuki Sankai, the president
of CYBERDYNE Inc. (SMBC Nikko Securities acted as the
lead manager for its share offering) and Mr. Minoru Nishimura,
the president of ENBIO HOLDINGS, INC. (listed on the Tokyo
Stock Exchange Mothers market in
March 2014) were guest speakers.
The seminars were well received
by participants. SMBC and SMBC
Nikko Securities continue to sup-
port 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 started to offer the “SMBC-ECO Loan” for
SMEs which obtained the certification for environment manage-
ment system; and Japan Research Institute subsequently devel-
oped 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 Placement
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 financially supporting clients of their initiatives for
social issues.
We will continue to support clients for their further advance-
ment through development of these solutions.
8
SMFG 2015
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
● Area Main Office
● Branch, 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 2015 Support for career education
As each university is required to enhance its “Career Education/
Guidance Program” in accordance with the policies set forth
by the Ministry of Education, Culture, Sports, Science and
Technology, 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 support career education, and we also ask our clients to
become instructors for the education programs to support the
program. For instance, there is a problem-solving program that
the client presents the business issue of “marketing of a new
product development” and students and the person in charge
of the company discuss in the program to jointly come up with
a proposal for a resolution; or we offer lectures given by the
client, including a founder of the venture company who speak
on the trends in the industry and business from the perspective
of developing entrepreneurs. Students commented that through
practical learning with participating companies, they can work
on to improve the competencies required in the society such
as “problem solving,” “presentation skills” and “team work.” On
the other hand, clients commented that innovative concepts
and ideas of students may give them clues for new business
opportunities, in addition to enhancing their CSR initiatives. We
continue to contribute to our clients’ business development by
providing assistance and support while cooperating beyond our
business framework.
Support for overseas development
In the midst of clients’ increasing needs for overseas develop-
ment, SMBC’s Global Advisory Department provides detailed
information on business sectors and respective laws and
regulations to clients who are actually considering the overseas
development, in addition to holding seminars providing informa-
tion on such as global economic conditions or economic and
financial developments of respective countries, and trends of
overseas development made by Japanese companies. We pro-
vide clients with the up-to-date information of local conditions,
relevant regulations and industrial trends. As for clients who
have already developed their business overseas, we provide
high-quality support and solutions for their business expan-
sion and business reorganizational needs. Further, the Global
Business Promotion Department also supports clients’ general
foreign exchange transactions by giving advice with respect to
their trading transactions or holding 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 2014, 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 2015
local governments developed their “Regional Comprehensive
Strategy” to work on initiatives for local revitalization. SMBC
continues to support initiatives of the respective local govern-
ments, including the Hyogo Prefecture which executed the
industrial development cooperation agreement with SMBC. We
continue to work with clients on initiatives for local recreation
by developing contacts between local governments and private
companies which are proactive for local business development.
Topics
◆ Japan Growth Strategy Cross-Functional Team
SMBC established the “Japan Growth Strategy Cross-
Functional Team” (“CFT”) in April 2014, as a cross-departmental
team to support, through financial businesses, the “indus-
tries” which continue to support Japan in 5 and 10 years
through financial businesses and to contribute to the growth
of the Japanese economy. The CFT collects information
and knowledge related to growing sectors as considered by
SMBC and the Group, and it specifically supports clients’
businesses in terms of finance and management by assist-
ing with origination through execution of the projects. In the
foreseeable future, the CFT will support sectors which are
subject to the Japanese Government’s Japan Revitalization
Strategy, focusing on such as agriculture, healthcare, energy,
and infrastructure. SMBC continues to contribute to the
growth of clients and development of Japanese economy
through these CFT’s activities, and it also accelerates creating
the reputation that SMBC/SMFG is strong in growth areas.
◆ SMBC Nadeshiko Loan and Private Placement
Bonds
SMBC began offering “SMBC Nadeshiko Loan and Private
Placement Bonds” in January 2015 to support clients who
promote initiatives for participation and advancement of
women in business. When the loan is executed, the Japan
Research Institute will measure in its own criteria and disclose
conditions of the initiatives taken by the client for women’s
participation and advancement in business, and it also
provides information on precedents resolving issues of such
initiatives. SMBC continues to financially support clients’
initiatives for promoting participation and advancement of
women in business.
Measures for the Greater China region (People’s
Republic of China, Hong Kong and Taiwan)
In order to provide attentive services for integrated domestic
and overseas offices by taking advantage of knowhow accu-
mulated in Japan for the Greater China region where many
Japanese companies have expanded, SMBC’s domestic
department has proceeded to plan and promote transac-
tions 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.
Furthermore, as of April 2015, SMBC has executed busi-
ness alliance agreements to support overseas businesses with
THE MINATO BANK, LTD., Kansai Urban Banking Corporation,
Mie Bank, Ltd. and seven other banks. As local recreation
is being considered as an important policy issue, respective
11
SMFG 2015
■ Services for Business Owners,
High-Net Worth Individuals and
Employees
Private Advisory Division
SMBC’s Private Advisory Division (“PAD”) provides services for
both individuals and corporate clients by working with other
SMBC Group companies and alliance partners.
To ensure that business owners and high-net worth indi-
viduals can facilitate succession of their important businesses
and assets, PAD provides support for business and asset
transfers for which we present proposals and provide informa-
tion. 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 busi-
ness 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 Main Office/Branch
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 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 proposals 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 preferences 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
Shareholding
0.51% stake
(as of May 1, 2015)
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, solutions for asset
succession-related matters by taking advantage of its trust-
banking functions.
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.
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 sup-
ports employees to realize their life plan.
Topics
Topics
In fiscal 2014, SMBC supported the event sponsored by
Nikkei Inc. for holding seminars on inheritance and business
succession in the four cities of Tokyo, Osaka, Nagoya and
Fukuoka.
We continue to proactively provide appropriate informa-
tion to clients.
As part of reorganization of group companies associated
with defined contribution pension business, Japan Pension
Navigator Co., Ltd. and Nikko Pension Consulting Co.,
Ltd. were 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 2015
M&A Financial Advisory Project Basis
Rank Advisory
1 Nomura Securities
2 Mizuho Securities
3 SMBC Nikko Securities
4 Daiwa Securities
5 SMBC
Number of
project
112
99
79
62
60
Share
(%)
4.0
3.5
2.8
2.2
2.1
* As a financial group, SMFG ranked second (with 139 projects)
Source: Thomson Reuters data on public offering projects by Japanese
companies (excluding real estate projects)
Topics
◆ Corporate Message and
Corporate Statement for SMBC Nikko Securities
SMBC Nikko Securities established its corporate message
of “Share the Future” and the corporate statement, as part
of brand enhancement measure for realizing to become the
“leading Japanese comprehensive securities company.”
With the attitude of “Think from Clients’ Perspectives and
Think for Clients,” we will make further efforts in focusing on
clients first.
◆ Initiatives for New Businesses
As aging in Japan is rapidly advancing, responding to issues
caused by aging is urgently needed. In order to provide
financial support to promote nursing-care facilities which are
important social infrastructures, SMBC has joined with Ship
Healthcare Holdings, Inc. and NEC Capital Solutions Limited
to establish Healthcare & Medical Investment Corporation,
specializing in nursing-care facilities such as paid nursing
homes and serviced residences for the elderly. This invest-
ment corporation was listed on the Tokyo Stock Exchange
in March 2015. It is expected that this listing may develop
and create new business opportunities such as nursing-
care facilities development business in the future. Through
these business opportunities, we contribute to the growth of
nursing-care and healthcare sectors.
■ 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, project
finance, M&A, and risk hedging, in order to assist their business
development or enhancement of their corporate value. This is
achieved by consolidating resources of the Group companies,
including SMBC and SMBC Nikko Securities Inc. Further,
SMFG strives to consistently create new business opportunities
originated by the needs of clients and investors based on its
business partnerships, networks, and risk-taking capabilities
by taking advantage of its strengths in market and products
knowledge.
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. SMBC Nikko Securities ranked 2nd in the “league
table” for fiscal 2014 prepared by SMBC Nikko Securities based
on information provided by Thomson Reuters (Global Equity &
Equity-Related; Bookrunner in Japan) with a market share of
17.0%. As it became the lead manager for major projects such
as global offerings and underwriting several REITs, its ranking
moved up to the 2nd from the previous fiscal year’s 3rd place.
It also ranked 3rd in the “M&A advisory services category for
publicly announced mergers involving Japanese companies,”
(Thomson Reuters). As for analyst ranking, Institutional Investor
magazine selected six analysts of SMBC Nikko Securities as top
analysts in their respective sectors (three analysts were selected
in the previous year), while five analysts were selected as top
analysts in their respective sectors and areas by Nikkei Veritas
magazine (four analysts were selected in the previous year).
As for overseas businesses, SMBC Nikko Securities generated
substantial results in underwriting bonds by increasing the num-
ber of projects to 19 as the “active” bookrunner. The number
of corporate client referrals made by SMBC to SMBC Nikko
Securities continued to increase, and in fiscal 2014, there were
approximately 5,500 referrals (+ approx. 6% compared to the
previous fiscal year) made. Our entire Group continues to inte-
grally work to enhance services provided to corporate clients.
(For reference: League Table)
Global Equity & Equity-Related; Bookrunner in Japan
Rank
Bookrunner
1 Nomura Securities
2 SMBC Nikko Securities
3 Daiwa Securities
4 Mizuho Securities
5 Morgan Stanley Securities
Underwriting
amount
(¥ billion)
Share
(%)
1,454.2
648.4
502.5
400.0
299.9
38.1
17.0
13.2
10.5
7.9
Source: Compiled by SMBC Nikko Securities based on data from Thomson
Reuters (includes overseas operations)
Listing of Healthcare REIT
13
SMFG 2015 Furthermore, as local banks’ need to participate in over-
seas projects increase in terms of diversifying portfolio and
strengthening of earning capability, SMBC and local banks
collaborated to develop a financeable scheme for several
overseas project finance loans by utilizing our bank’s trust
function. In November 2014, we executed a financing agree-
ment with The 77 Bank, Ltd. and The Iyo Bank, Ltd. With the
increased number of investors utilizing this arrangement, we
may possibly enhance project financing capability as a result
of attracting domestic funds to finance overseas infrastruc-
ture projects.
SMBC has added the “Robot” sector to its existing
growth sectors, consisting of “New Energy,” “Environment,”
“Water,” “Resources,” “Healthcare,” and “Agriculture” in the
Growth Industry Cluster, and it continues to work on generat-
ing new business models. 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 accumulated from alliances
among industry-government-academia.
■ International Banking
SMFG strives to provide high value-added services tailored
to the specific local needs of its globally-operating clients,
including business corporations, financial institutions, govern-
mental organizations and public entities, mainly through the
International Banking Unit of SMBC.
SMBC strives to become 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.
Enhancing Initiatives for Asia
SMBC has been enhancing its initiatives in the Asian region for
realizing the “Asia-Centric” operations.
Specifically, in April 2015, SMBC established the “Transaction
Banking Solutions Dept., Asia Pacific Division” to enhance trans-
action banking operations in the said region, and also established
the “Corporate Solutions Dept., Asia ” to improve its solution-
proposing capability. Further, we established the “Credit Dept.,
Asia Pacific Division” and “Credit Dept., East Asia” within Credit
Management Dept., International Banking Unit, to develop the
community-based and promptly-processed credit/settlement
system, and also established the “Legal and Compliance Dept.,
Asia Pacific Division” to enhance the cross-regional compliance
system. Furthermore, we established the “Treasury Dept., Asia
Pacific Division” to integrally manage and advance ALM in Asia-
Pacific regions.
Through these initiatives, SMBC plans to develop global
businesses by further increasing its presence in Asia and provid-
ing excellent services being provided in Asia even to clients in
the Americas and Europe.
Topics
◆ Project Finance
In fiscal 2014, SMBC was awarded with the “Global Bank
of the Year 2014”* in project finance field which is an award
presented to the most globally successful bank in project
financing. This is the third time to receive this award followed
by the years of 2008 and 2012. We became the first bank in
the project finance field to receive such award for the third
time. In order to accommodate the needs of clients, we
continue to provide high quality and leading project finance
services for infrastructure and resource development projects
of respective countries in the world.
* The “Global Bank of the Year” is an award presented by the “Project
Finance International,” the respected specialized magazine in project
finance field, published by Thomson Reuters.
14
SMFG 2015
Further Enhancing Products and
Clients Coverage
SMBC develops the system which enables to extensively
accommodate according to clients’ needs by further enhanc-
ing the coverage for products and clients. In particular in the
aircraft leasing business, we are proceeding with initiatives for
solidly establishing our presence in the aircraft leasing industry;
SMBC Aviation Capital Limited individually executed a pur-
chase agreement with SAS Airbus of France in July 2014 to
purchase 115 aircraft and with The Boeing Company of U.S. in
November 2014 to purchase 80 aircraft. Further, in the United
States, we developed a system which enables us to more
extensively accommodate the needs of clients by establishing
the “Institutional Client Dept., Americas Division” and “Finance
Strategy Dept., Americas Division.”
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 cli-
ents’ global business development by leveraging our expanding
worldwide network.
Date of
establishment
June 2014
December
2014
Country
Czech
Republic
Spain
Sumitomo Mitsui Banking Corporation
Europe Limited Prague Branch
Sumitomo Mitsui Banking Corporation
Europe Limited Madrid Branch
March 2015
Mexico
SMBC SOFOM
April 2015
Myanmar
Yangon Branch
Initiatives for True Globalization
SMBC proceeds with promoting local employees in overseas
operations. In addition to proactively promoting them for
managerial positions for overseas-related departments, we are
implementing the initiative, ahead of other banks, to double the
number of non-Japanese executive officers from 3 to 6 in April
2015. SMBC is striving to further develop its international busi-
nesses by proactively utilizing local knowledge through promot-
ing local employees in overseas.
Topics
◆ Investing in Local Financial Institutions
SMBC is working to strengthen its relations with local banks
in emerging countries and growth markets. In September
2014, SMBC acquired 12.25% equity stake in ACLEDA Bank
Plc., the largest bank in Cambodia where the economy is
rapidly growing; and in March 2015, it increased its equity
stake in The Bank of East Asia, Limited in Hong Kong to
the equivalent of 17.42% equity stake by making additional
investments and making The Bank of East Asia, Limited
an equity method affiliated company. Further, in April 2015,
SMBC executed a stock purchase agreement to acquire
8.84% equity stake in Financiera de Desarrollo Nacional S.A.,
the national bank of Colombia.
15
SMFG 2015 ■ 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 committed 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)
Fund and bond transactions
Interbank Market
◆ Responding to Clients’ Diversifying Needs for
Emerging Market Currency Transactions
We are committed to enhancing hedging schemes which
meet clients’ needs 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 timely 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 17,000 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.
◆ Advancing ALM Operations in the Asia-Pacific
Region
In April 2015, SMBC established the “Treasury Department,
Asia-Pacific Division” to oversee treasury operations in the
Asia-Pacific region.
This department will integrate and advance ALM in the
Asia-Pacific region, while accommodating clients’ needs for
Asian businesses mainly in foreign exchange service.
■ Transaction Banking Business
Strengthening Transaction Banking Business
At SMBC, the Transaction Business Division is being established
to provide integrated and flexible products and services by
cooperating among relevant departments in order to accommo-
date domestic and overseas corporate clients’ diverse transac-
tion needs and associated financial needs.
The Transaction Business Division consists of the follow-
ing departments which provide transaction-related services
and execute measures; the Global Transaction Banking
Department, the Transaction Banking Department, the Asset
Finance Department, the Global Advisory Department, the
Global Business Promotion Department, the Global Transaction
Support Department, the Global Transaction Office, the
E-Transaction Business Center, and the Transaction Business
Planning Department. Our experts in respective departments
in Japan and overseas extensively and promptly accommodate
the needs of clients by cooperating to provide high-value added
information, and to improve and enhance system products and
solutions.
16
SMFG 2015
Transaction Business
Clients
Identifying needs
Wholesale
Front office operations
Retail
International
system and settlement infrastructure which support the provi-
sion of secure settlement services for our clients. We are work-
ing to reduce risks related to settlements, such as the Japanese
Government Bond settlement cycle reform, in addition to
services for SWIFT* and BOJ-Net.
Providing information, solutions
* Society for Worldwide Interbank Financial Telecommunication
Transaction Business Division
Operation Offices
Global Transaction Banking Dept.
Overseas transaction solutions, global fund management
Transaction Banking Dept.
Domestic exchange, domestic transaction solution services
Global Advisory Dept.
Overseas business development advisory services
Tokyo Global Transaction Office
Global Business Promotion Dept.
Planning and promotion of foreign exchange operations
Osaka Global Transaction Office
Global Transaction Support Dept.
Planning of foreign exchange operations and advice for trade operations
Nagoya Global Transaction Office
Asset Finance Dept.
Planning and promotion for transaction finance
Transaction Business Planning Dept.
General management of respective transaction banking
departments and proposing transaction business strategies
E-Transaction Business Center
Client Services
Desk for
foreign
exchange
services
Call Centers for
electronic banking
services
I
n
t
e
g
r
a
t
e
d
m
a
n
a
g
e
m
e
n
t
Transaction-related departments/Transaction-related group companies
Collaboration
Strengthening Transaction Banking Products
to Respond to Clients’ Needs
SMBC is enhancing transaction banking products to respond to
domestic and overseas clients’ transactions and cash manage-
ment needs.
We continue to improve and enhance electronic bank-
ing services, for the “PC Bank Web21” and a new means of
settlement of “Densai Net” in order to support our clients’ daily
cash management, “Global e-Trade Service” in order to sup-
port foreign exchange and trade transactions in Japan, and
“SMAR&TS” in overseas etc.
We also continue to strengthen our support for our clients in
Japan and overseas by providing high value-added information;
providing the system to support cash and financial management
for the corporate group; improving foreign currency transactions
including renminbi; and allocating specialized professionals.
High Value-Added Services Integrally Provided
by SMFG
SMFG works at providing high value-added services with
respect to the transaction banking business of clients.
SMBC and Financial Link Company, Limited integrally work
with SMFG to provide “SMFG-BPO Services” (BPO: Business
Process Outsourcing) by accommodating needs for improving the
business process associated with fund collection and repayment.
Further, SMBC Finance Service Co., Ltd. mainly provides
“collection agency service (account transfers)” and “conve-
nience store’s payment collection agency service,” and the
number of transactions for these services is the highest in
Japan. Furthermore, as for the yearly expanding EC market,
we provide diverse solutions as one of the core companies in
charge of transaction banking business for SMFG, by provid-
ing “Transaction Station” platform which collectively provides
diverse transaction means such as credit card payment and
bank transfer settlement.
Enhancing each Settlement System and
Settlement Infrastructure
It is imperative that we appropriately enhance the settlement
A member-owned cooperative that provides the communica-
tions platform connected more than 10,000 financial institu-
tions in 210 countries.
Topics
◆ Enhancing Support System for Transaction-
Related Services by Integrating Banking
Subsidiaries into Banking Organization
In October 2014, SMBC integrated SMBC International
Operations Co., Ltd., which was contracted for handling
foreign exchange administrative operations, into SMBC. We
plan to improve our support for clients by enhancing both
administrative operations and marketing promotion for foreign
exchange businesses.
Further, in December 2014, we integrated the E-Transaction
Business Center which processes various inquiries related
to EB services within SMBC Center Service Co., Ltd., into
SMBC. We will work to provide more-value added informa-
tion to clients through our call center.
◆ Consecutively Highly Evaluated for Customer
Satisfaction Survey of ASiAMONEY Magazine
As a result of focusing to improve CMS for years, we
have been consecutively highly evaluated by clients in the
customer satisfaction survey annually conducted by the
ASiAMONEY magazine by ranking 3rd overall (1st among
Japanese banks) for the comprehensive evaluation for Asia
Pacific regions (including foreign banks).
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: 454
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: 24
17
SMFG 2015
Group Companies (as of March 31, 2015)
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
• We grow and prosper together with our customers,
by providing services of greater value to them.
• We aim to maximize our shareholders’ value through
the continuous growth of our business.
• We create a work environment that encourages and
rewards diligent and highly-motivated 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 of
The Sakura Bank, Limited and The Sumitomo
Bank, Limited. Sumitomo Mitsui Financial
Group, Inc. was established in December 2002
as a bank holding company through the share
transfer, and SMBC became a wholly owned
subsidiary of SMFG. In March 2003, SMBC
merged with The Wakashio Bank, Ltd.
SMBC’s competitive advantages include
its solid and extensive client base, the expedi-
tious implementation of strategies, and also the
service providing capability of its predominant
Group companies. SMBC, as a core mem-
ber of SMFG, integrally work with other Group
companies to provide highly sophisticated and
comprehensive financial services to clients.
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: 26,416
Number of branches and other business locations:
In Japan:
Branches:
1,924*
507
(Including 46 specialized deposit account branches)
475
Sub-branches:
Banking agencies:
2
Offices handling non-banking business: 24
916
Automated service centers:
39
Overseas:
15
Branches:
17
Sub-branches:
7
Representative offices:
* The number of domestic branches excludes ATMs located
at the business sites of companies and at retail convenience
stores. Since fiscal 2014, the number of representative offices
includes corporate banking department and other depart-
ments. The number of overseas branches excludes
locally-incorporated companies in overseas.
Credit Ratings (as of June 30, 2015)
Moody’s
Standard & Poor’s
Fitch Ratings
R&I
JCR
Long-term Short-term
P–1
A–1
F1
a–1+
J–1+
A1
A+
A–
AA–
AA
Financial Information (Consolidated basis, years ended March 31)
2015
Billions of yen
2013
2014
2012
For the Year:
Ordinary income ..... ¥ 3,199.4 ¥ 3,105.9 ¥ 2,810.6 ¥ 2,687.9
857.9
Ordinary profit .......
533.8
Net income .............
At Year-End:
Net assets............... ¥ 10,036.0 ¥ 8,640.7 ¥ 8,257.0 ¥ 7,276.7
138,251.6
Total assets ............ 177,559.1
1,198.9
736.9
1,298.7
785.6
928.7
734.5
143,203.1
155,824.1
Sumitomo Mitsui Finance and Leasing
(“SMFL”) is a leading Japanese leasing com-
pany with an extensive history of going back
to its origination of the leasing business in
1968. SMFL provides financial solutions and
services appropriate to diversifying needs of
clients by taking advantage of its abundant
experiences and past performance results
accumulated over the years.
SMFL proactively works on the areas with
high social needs such as environment/
energy, medical/nursing care, leasing, or sale
of secondhand machines, while appropri-
ately responding to the globalization of capital
expenditures and sales activities in overseas.
SMFL develops along with clients by
promptly providing diverse products and ser-
18
www.smfl.co.jp/english/
vices which would contribute to the clients’
management issues.
Credit Ratings (as of June 30, 2015)
R&I
JCR
Long-term Short-term
a–1
J–1+
A+
AA–
Financial Information (Years ended March 31)
2015
Billions of yen
2013
2014
2012
For the Year:
Leasing transaction
volume .................... ¥1,865.8
1,152.0
Operating revenue ....
84.8
Operating profit ........
¥1,767.0
1,037.2
75.6
¥1,335.4
992.2
57.6
¥1,080.1
951.9
61.0
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: 2,358
SMFG 2015
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: 8,085
www.smbcnikko.co.jp/en
Credit Ratings (as of June 30, 2015)
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)
2015
Billions of yen
2013
2014
2012
For the Year:
Operating revenue ...
Operating income ...
¥332.6
89.1
¥333.4
96.6
¥280.5
72.7
¥233.6
39.9
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: 1,962
Financial Information (Years ended March 31)
For the Year:
Operating revenue ...
Operating profit ......
2015
¥50.0
9.8
Billions of yen
2013
2014
¥57.7
15.0
¥59.6
18.0
2012
¥47.5
8.3
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 “the securities company especially
appreciated by clients,” offering high-quality
products and services accommodating the
needs of its clients and building trust for its
clients.
As the pioneer in the issuance of the Visa
Card in Japan and a leader in the domestic
credit card industry, Sumitomo Mitsui Card
Company, Limited, enjoys the strong support
of its many customers and plays a major role
as one of the strategic businesses of SMFG.
Leveraging its strong brand image and its
excellent capabilities across a wide range of
card-related services, the company provides
settlement and financing services focused
around providing credit services that meet
customer needs. Through its credit card busi-
ness operations, the company aims to actively
contribute to the realization of comfortable
and affluent consumer lifestyles and make fur-
ther dramatic advances as a leading brand in
its industry sector.
Company Name: Sumitomo Mitsui Card
Company, Limited
Business Profile: Credit card
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, 2015)
R&I
JCR
Long-term Short-term
a–1+
J–1+
AA–
AA–
Chuo-ku, Osaka
Financial Information (Years ended March 31)
President & CEO: Ken Kubo
Number of Employees: 2,392
(Appointed on June 24, 2015)
2015
Billions of yen
2013
2014
2012
For the Year:
Revenue from credit
card operations ........ ¥10,091.0
198.4
Operating revenue ......
Operating profit ..........
41.9
At Year-End:
Number of cardholders
(in thousands) ...........
23,490
¥9,131.5
191.4
43.6
¥8,194.6
185.6
44.7
¥7,560.6
182.2
43.1
22,994
22,400
21,647
19
SMFG 2015 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: 3,136
Credit Ratings (as of June 30, 2015)
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) ................
2015
Billions of yen
2013
2014
2012
¥149.8
1.0
¥160.0
10.7
¥164.0
13.4
¥176.2
(27.6)
17,633
18,412
19,480
21,091
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: 2,145
Cooperation:
SHOCHIKU Co., Ltd.,
Kabuki-za Co., Ltd.
Credit Ratings (as of June 30, 2015)
Long-term Short-term
R&I
JCR
A
A–
Financial Information (Years ended March 31)
For the Year:
Operating revenue ....
Operating profit (loss) ...
2015
¥168.6
3.7
Billions of yen
2013
2014
¥164.7
15.9
¥164.6
42.3
¥172.2
(166.6)
—
—
2012
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: Masahiro Fuchizaki
(Appointed on May 1, 2015)
Number of Employees: 2,198
www.jri.co.jp/english/
Financial Information (Years ended March 31)
For the Year:
Operating revenue ....
Operating profit ........
2015
¥111.1
1.7
Billions of yen
2013
2014
¥106.0
1.7
¥96.2
1.8
2012
¥87.5
0.8
20
SMFG 2015 Financial Highlights
Sumitomo Mitsui Financial Group (Consolidated)
Year ended March 31
For the Year:
2015
2014
Ordinary income ...........................................................
Ordinary profit ..............................................................
Net income ...................................................................
Comprehensive income ...............................................
¥ 4,851,202
1,321,156
753,610
2,063,510
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Capital ratio ..................................................................
Total capital ratio (International Standard) ...................
Tier 1 capital ratio (International Standard) ..................
Common equity Tier 1 capital ratio
(International Standard) ..............................................
Number of employees ..................................................
¥ 10,696,271
183,442,585
/
16.58%
12.89%
Millions of yen
2013
¥ 4,326,424
1,073,745
794,059
1,458,107
¥ 8,443,218
148,696,800
/
14.71%
10.93%
2012
2011
¥ 3,945,282
935,571
518,536
665,232
¥ 7,254,976
143,040,672
16.93%
/
/
¥ 3,845,861
825,428
475,895
413,375
¥ 7,132,073
137,803,098
16.63%
/
/
¥ 4,641,880
1,432,332
835,357
1,303,295
¥ 9,005,019
161,534,387
/
15.51%
12.19%
11.30%
68,739
10.63%
66,475
9.38%
64,635
/
64,225
/
61,555
Note: “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.
21
SMFG 2015 Sumitomo Mitsui Banking Corporation
◆ Consolidated
Year ended March 31
For the Year:
2015
2014
Ordinary income ...........................................................
Ordinary profit ..............................................................
Net income ...................................................................
Comprehensive income ...............................................
¥ 3,199,409
1,198,955
736,904
1,937,374
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Capital ratio (International standard) ............................
Total capital ratio (International standard) ...................
Tier 1 capital ratio (International standard) ..................
Common equity Tier 1 capital ratio
(International standard) ..............................................
Number of employees ..................................................
¥ 10,036,003
177,559,197
/
17.93%
13.91%
Millions of yen
2013
¥ 2,810,681
928,713
734,514
1,373,623
¥ 8,257,091
143,203,127
/
16.84%
12.69%
2012
2011
¥ 2,687,911
857,919
533,816
632,889
¥ 7,276,706
138,251,602
19.63%
/
/
¥ 2,771,380
751,208
450,832
363,689
¥ 6,983,132
132,715,674
19.16%
/
/
¥ 3,105,992
1,298,738
785,687
1,174,292
¥ 8,640,763
155,824,141
/
17.08%
13.43%
12.61%
50,249
12.27%
48,824
11.26%
47,852
/
50,768
/
48,219
Note: “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.
◆ Nonconsolidated
Year ended March 31
For the Year:
2015
2014
Ordinary income ...........................................................
Trust fees .................................................................
Gross banking profit (A) ...............................................
Expenses (excluding nonrecurring losses) (B) .............
Overhead ratio (B) / (A) .................................................
Banking profit ...............................................................
Banking profit (before provision for general
reserve for possible loan losses) ................................
Ordinary profit ..............................................................
Net income ...................................................................
¥ 2,370,998
1,872
1,634,284
791,211
48.4%
843,073
843,073
955,992
643,015
At Year-End:
Total net assets ............................................................
Total assets ..................................................................
Deposits .......................................................................
Loans and bills discounted ..........................................
Securities .....................................................................
Trust assets and liabilities ............................................
Loans and bills discounted ......................................
Securities .................................................................
Capital stock ................................................................
¥ 7,998,715
154,724,079
91,337,714
68,274,308
29,985,267
3,542,957
373,230
1,451,206
1,770,996
Number of shares issued (in thousands)
Common stock ....................................................
Preferred stock ....................................................
Dividend payout ratio ...................................................
Capital ratio (International standard) ............................
Total capital ratio (International standard) ...................
Tier 1 capital ratio (International standard) ..................
Common equity Tier 1 capital ratio
(International standard) ..............................................
Number of employees ..................................................
106,248
70
77.18%
/
18.89%
14.26%
12.80%
26,416
¥ 2,342,582
1,972
1,558,184
745,745
47.9%
812,438
812,438
952,516
605,255
¥ 7,077,360
135,966,434
84,137,339
63,370,678
27,317,549
3,108,012
143,469
1,420,372
1,770,996
106,248
70
75.92%
/
18.30%
14.02%
12.47%
22,915
Millions of yen
2013
¥ 2,121,369
1,823
1,540,095
727,736
47.3%
812,358
812,358
670,852
617,791
¥ 6,554,446
125,910,020
80,006,438
59,770,763
41,347,000
2,693,092
131,913
1,076,225
1,770,996
106,248
70
29.04%
/
18.62%
13.92%
11.75%
22,569
2012
2011
¥ 2,018,585
1,736
1,532,511
719,495
46.9%
856,796
813,015
695,342
477,973
¥ 5,709,663
119,037,469
75,804,088
56,411,492
42,441,134
1,891,853
235,829
424,478
1,770,996
106,248
70
33.00%
21.91%
/
/
/
22,686
¥ 2,108,724
2,299
1,531,759
699,197
45.6%
844,897
832,562
595,704
421,180
¥ 5,559,293
115,484,907
74,036,469
55,237,613
39,853,432
1,576,094
237,383
444,664
1,770,996
106,248
70
35.53%
21.45%
/
/
/
22,524
Note: “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.
22
SMFG 2015 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, 2015.
1. Operating Results
Operating results for fiscal 2014 include the results of 317
consolidated subsidiaries and 50 subsidiaries and affiliates
accounted for by the equity method.
In fiscal 2014, consolidated net business profit declined
by ¥28.1 billion year-on-year to ¥1,310.5 billion. Although
consolidated gross profit increased largely due to increased
profits from the Treasury Unit at SMBC resulting from ALM
operations that quickly responded to market conditions
and steady results of major subsidiaries such as Sumitomo
Mitsui Finance and Leasing, SMBC Nikko Securities,
Sumitomo Mitsui Card and SMBC Consumer Finance;
general and administrative expenses were up as SMBC
aimed at strengthening its overseas business, and SMBC
Nikko Securities, Sumitomo Mitsui Card and other subsidiar-
ies aimed at enhancing the business structure to generate
stronger top-line growth.
Ordinary profit after adjustment for total credit cost,
net gains on stocks, and other items, declined by ¥111.2
billion year-on-year to ¥1,321.2 billion. Net income after
adjustment for extraordinary gains (losses) and income taxes
declined by ¥81.7 billion to ¥753.6 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 ...................................
2015 (A)
2014 (B)
317
50
324
46
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 .......................................................................
Equity in gains of affiliates .........................................................................................
Consolidated net business profit...................................................................................
Net total credit cost .......................................................................................................
Credit costs ...............................................................................................................
Gains on reversal of reserve for possible loan losses ...............................................
Recoveries of written-off claims ................................................................................
Gains (losses) on stocks ................................................................................................
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 ....................................................................................................................
2015 (A)
¥ 2,980,403
1,505,178
2,890
996,676
195,119
280,538
(1,659,341)
(10,600)
1,310,461
(7,847)
(84,985)
61,158
15,979
66,693
(48,151)
1,321,156
(11,778)
(6,315)
(5,109)
1,309,377
(325,341)
(116,020)
868,015
(114,405)
¥ 753,610
Millions of yen
2014 (B)
¥ 2,898,233
1,484,169
2,472
984,589
211,881
215,120
(1,569,945)
10,241
1,338,530
49,073
(96,797)
136,212
9,657
89,243
(44,514)
1,432,332
(9,637)
(8,595)
(3,348)
1,422,694
(290,186)
(168,618)
963,889
(128,532)
¥ 835,357
Increase (decrease)
(A) – (B)
(7)
4
Increase (decrease)
(A) – (B)
¥ 82,170
21,009
418
12,087
(16,762)
65,418
(89,396)
(20,841)
(28,069)
(56,920)
11,812
(75,054)
6,322
(22,550)
(3,637)
(111,176)
(2,141)
2,280
(1,761)
(113,317)
(35,155)
52,598
(95,874)
14,127
¥ (81,747)
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. In fiscal 2014 the definition of consolidated net business profit changed. The change has been retroactively applied to the figures for fiscal 2013.
3. Credit costs = Write-off of loans + Provision for reserve for possible loan losses + Others (Losses on sales of delinquent loans)
23
SMFG 2015
Loans and bills discounted as of March 31, 2015 totaled
¥73,068.2 billion, a year-on-year increase of ¥4,840.6 bil-
lion, as lending increased primarily in Asia and the Americas,
and securities totaled ¥29,633.7 billion, an increase of
¥2,480.9 billion.
Deposits as of March 31, 2015 increased by ¥6,716.0
billion year-on-year to ¥101,047.9 billion due to increases in
Japan and overseas, and negotiable certificates of deposit
increased by ¥112.4 billion year-on-year to ¥13,825.9 billion.
Net assets totaled ¥10,696.3 billion. Of this amount,
stockholders’ equity was ¥7,018.4 billion, mainly due to
the recording of net income, and the payment of cash
dividends. Total accumulated other comprehensive income
amounted to ¥2,003.9 billion.
Assets, Liabilities and Net Assets
March 31
Assets ............................................................................................................................ ¥183,442,585
73,068,240
29,633,667
172,746,314
101,047,918
13,825,898
10,696,271
7,018,389
2,003,859
Loans and bills discounted ........................................................................................
Securities ...................................................................................................................
Liabilities ........................................................................................................................
Deposits.....................................................................................................................
Negotiable certificates of deposit ..............................................................................
Net assets .....................................................................................................................
Stockholder’s equity ..................................................................................................
Total accumulated other comprehensive income ......................................................
2015 (A)
Millions of yen
2014 (B)
¥161,534,387
68,227,688
27,152,781
152,529,368
94,331,925
13,713,539
9,005,019
6,401,215
877,971
Increase (decrease)
(A) – (B)
¥21,908,198
4,840,552
2,480,886
20,216,946
6,715,993
112,359
1,691,252
617,174
1,125,888
2. Unrealized Gains (Losses) on Securities
Net unrealized gains on securities as of March 31, 2015
increased by ¥1,186.8 billion year-on-year to ¥2,625.6
billion, mainly as a result of an increase in unrealized gains
on stocks reflecting rising stock prices.
Unrealized Gains (Losses) on Securities
Consolidated
balance
sheet amount
Net unrealized
March 31
gains (losses) (A)
Held-to-maturity securities ................. ¥ 3,397,151 ¥ 20,580
Other securities .................................. 26,263,425
2,604,985
Stocks .............................................
2,054,308
4,065,999
Bonds ............................................. 13,699,561
50,028
JGBs ........................................... 11,007,006
12,968
Others .............................................
500,649
8,497,864
Foreign bonds .............................
29,230
5,633,955
Other money held in trust ...................
—
7,087
Total .................................................... 29,667,664
2,625,566
Stocks .............................................
2,054,308
4,065,999
Bonds ............................................. 17,096,713
70,609
Others .............................................
500,649
8,504,952
2015
(A) – (B)
Millions of yen
Unrealized
gains
¥ (13,217) ¥ 20,580
2,653,967
2,073,367
60,837
18,649
519,762
45,707
—
2,674,548
2,073,367
81,417
519,762
1,199,993
923,165
(15,564)
(9,486)
292,394
56,341
—
1,186,777
923,165
(28,779)
292,392
Unrealized
losses
¥ —
48,981
19,059
10,808
5,680
19,113
16,477
—
48,981
19,059
10,808
19,113
2014
Consolidated
balance
sheet amount
Net unrealized
gains (losses) (B)
¥ 4,536,849 ¥ 33,797
1,404,992
1,131,143
65,592
22,454
208,255
(27,111)
—
1,438,789
1,131,143
99,388
208,257
22,866,288
3,185,495
12,897,704
9,911,224
6,783,089
4,304,903
23,120
27,426,258
3,185,495
17,425,753
6,815,009
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, 2015 and 2014, included gains of ¥29,870 million and ¥17,031 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, 2015 and 2014, were reduced by ¥29,870 million and ¥17,031 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).
24
SMFG 2015
3. Consolidated Capital Ratio
As of March 31, 2015, Common equity Tier 1 capital ratio
rose by 0.67% year-on-year to 11.30%, Tier 1 capital
ratio increased by 0.70% to 12.89% and total capital ratio
increased by 1.07% to 16.58%, reflecting the recording of
net income and other factors.
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.....................................................................................................
2015 (A)
¥ 7,476,520
11.30%
1,052,105
8,528,626
12.89%
2,437,289
10,965,916
16.58%
66,136,801
Millions of yen
2014 (B)
¥ 6,550,796
10.63%
963,538
7,514,335
12.19%
2,047,083
9,561,418
15.51%
61,623,294
Increase (decrease)
(A) – (B)
¥ 925,724
0.67%
88,567
1,014,291
0.70%
390,206
1,404,498
1.07%
4,513,507
25
SMFG 2015 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, 2015.
1. Operating Results
In fiscal 2014, gross banking profit increased by ¥76.1 billion
year-on-year to ¥1,634.3 billion, and expenses (excluding
nonrecurring losses) increased by ¥45.5 billion to ¥791.2 bil-
lion. As a result, banking profit (before provision for general
reserve for possible loan losses) increased by ¥30.6 billion
year-on-year to ¥843.1 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 ¥3.5 billion year-on-year to ¥956.0
billion.
Net income, after the adjustment of ordinary profit for
extraordinary gains and losses, and income taxes and other
taxes, increased by ¥37.8 billion year-on-year to ¥643.0 billion.
2. Income Analysis
Gross Banking Profit
Gross banking profit increased by ¥76.1 billion year-on-year
to ¥1,634.3 billion. This mainly reflected an increase in gross
international profit primarily due to an increase in interest on
loans and bills discounted in line with asset growth mainly in
Asia and the Americas, and an increase in gains on bonds.
On the other hand, gross domestic profit declined mainly due
to shrinking loan spreads resulting from intense competition.
Expenses
Expenses (excluding non-recurring losses) increased by ¥45.5
billion year-on-year to ¥791.2 billion. This was mainly due to an
increase in expenditures aimed at enhancing top-line growth
such as to strengthen the overseas business, and also by the
impact of an increase in the consumption tax rate.
Banking Profit
Banking profit (before provision for general reserve for pos-
sible loan losses) increased by ¥30.6 billion year-on-year to
¥843.1 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 ................................................................................................................
2015 (A)
¥ 1,634,284
[1,097,724]
[536,560]
1,121,428
1,872
349,979
12,799
148,204
[47,899]
(791,211)
(312,580)
(435,771)
(42,859)
843,073
[47,899]
—
843,073
Banking Profit by Business Unit
Millions of yen
2014 (B)
¥ 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
Increase (decrease)
(A) – (B)
¥ 76,100
[(14,284)]
[90,385]
56,522
(100)
(7,372)
(23,980)
51,032
[47,165]
(45,466)
(29,344)
(10,631)
(5,491)
30,635
[47,165]
—
30,635
Year ended March 31, 2015
Banking profit (before provision for
general reserve for possible loan losses) .....................................
Year-on-year increase (decrease) ...................................................
Wholesale
Banking Unit
Retail
Banking Unit
International
Banking Unit
Treasury
Unit
Head Office
Account
Total
Billions of yen
¥348.6
(11.7)
¥36.7
(33.5)
¥238.7
9.3
¥328.1
27.4
¥(109.0)
39.2
¥843.1
30.7
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.
26
SMFG 2015
Extraordinary Gains (Losses)
Extraordinary losses increased by ¥2.3 billion year-on-year
to ¥8.3 billion.
Net Income
Net income, after the adjustment of ordinary profit for
extraordinary gains and losses and income taxes, increased
by ¥37.8 billion year-on-year to ¥643.0 billion.
Nonrecurring Gains (Losses) (Credit Costs, etc.)
Nonrecurring gains were ¥112.9 billion, a deterioration of
¥27.2 billion compared with the previous fiscal year. This
was primarily due to declines in gains on reversal of reserve
for possible loan losses and gains on stocks, although other
non-recurring gains increased mainly due to decline in provi-
sion of reserve for possible losses on investments.
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—was a net reversal of ¥80.1 billion, ¥43.8 billion
lower in terms of gains compared with the previous year.
Ordinary Profit
As a result, ordinary profit increased by ¥3.5 billion year-on-
year to ¥956.0 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 ......................................................................................
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 ....................................................................................................................
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 ................................................................................
2015 (A)
¥ 843,073
—
843,073
112,919
(5,193)
79,009
6,326
52,582
(19,805)
955,992
(8,344)
(4,911)
(3,432)
(224,845)
(79,787)
¥ 643,015
¥ 80,142
91,528
(417)
(12,547)
(4,776)
28
6,326
Millions of yen
2014 (B)
¥812,438
—
812,438
140,078
(8,945)
132,784
82
106,410
(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
Increase (decrease)
(A) – (B)
¥ 30,635
—
30,635
(27,159)
3,752
(53,775)
6,244
(53,828)
70,447
3,476
(2,311)
(1,307)
(1,004)
(41,976)
78,571
¥ 37,760
¥(43,778)
24,901
4,103
(79,446)
(351)
770
6,244
27
SMFG 2015 3. Assets, Liabilities and Net Assets
Assets
Total assets as of March 31, 2015 increased by ¥18,757.6
billion year-on-year to ¥154,724.1 billion.
Cash and due from banks increased by ¥6,875.4 billion to
¥37,008.7 billion.
Loans and bills discounted totaled ¥68,274.3 billion, a
year-on-year increase of ¥4,903.6 billion, as steady results
in Japan and increases primarily in Asia and the Americas.
Securities increased by ¥2,667.7 billion year-on-year to
¥29,985.3 billion, mainly as a result of an increase in unreal-
ized gains on stocks.
Liabilities
Liabilities as of March 31, 2015 increased by ¥17,836.3 bil-
lion year-on-year to ¥146,725.4 billion. Deposits increased
by ¥7,200.4 billion to ¥91,337.7 billion due to increases
both in Japan and overseas. Negotiable certificates of
deposit increased by ¥1.6 billion to ¥14,022.1 billion.
Net Assets
Net assets as of March 31, 2015 totaled ¥7,998.7 billion.
Of this amount, stockholders’ equity was ¥6,369.5 billion.
Valuation and translation adjustments were ¥1,629.3 billion.
Assets, Liabilities and Net Assets
March 31
Assets ............................................................................................................................ ¥154,724,079
37,008,665
68,274,308
29,985,267
146,725,363
91,337,714
14,022,064
7,998,715
6,369,453
1,629,261
Cash and due from banks .........................................................................................
Loans and bills discounted ........................................................................................
Securities ...................................................................................................................
Liabilities ........................................................................................................................
Deposits.....................................................................................................................
Negotiable certificates of deposit ..............................................................................
Net assets .....................................................................................................................
Stockholders’ equity ..................................................................................................
Valuation and translation adjustments ......................................................................
2015 (A)
Millions of yen
2014 (B)
¥135,966,434
30,133,257
63,370,678
27,317,549
128,889,073
84,137,339
14,020,505
7,077,360
6,179,502
897,858
Increase (decrease)
(A) – (B)
¥18,757,645
6,875,408
4,903,630
2,667,718
17,836,290
7,200,375
1,559
921,355
189,951
731,403
28
SMFG 2015 4. Unrealized Gains (Losses) on Securities
Net unrealized gains on securities as of March 31, 2015
increased by ¥1,109.2 billion year-on-year to ¥2,354.7 bil-
lion, mainly as a result of an increase in unrealized gains on
stocks reflecting rising stock prices.
Unrealized Gains (Losses) on Securities
Millions of yen
2015
2014
Non-consolidated
balance sheet
amount
Net unrealized
March 31
gains (losses) (A)
Held-to-maturity securities ................. ¥ 3,352,592 ¥ 20,454
Stocks of subsidiaries and affiliates ...
(58,526)
3,414,839
Other securities .................................. 23,774,009
2,392,781
Stocks .............................................
1,989,713
3,970,914
Bonds ............................................. 13,036,709
45,868
JGBs ........................................... 10,687,062
11,131
Others .............................................
357,200
6,766,385
Foreign bonds .............................
30,320
4,238,647
Other money held in trust ...................
—
—
Total .................................................... 30,541,441
2,354,709
Stocks .............................................
1,986,857
5,180,246
Bonds ............................................. 16,389,301
66,322
Others .............................................
301,529
8,971,892
(A) – (B)
¥ (12,661)
13,895
1,108,002
880,623
(14,125)
(9,753)
241,505
52,667
—
1,109,235
882,490
(26,787)
253,532
Unrealized
gains
¥ 20,454
22,352
2,436,529
2,007,929
56,548
16,812
372,050
42,891
—
2,479,335
2,016,376
77,002
385,955
Unrealized
losses
¥ —
80,878
43,747
18,216
10,680
5,680
14,850
12,571
—
124,626
29,519
10,680
84,426
Non-consolidated
balance sheet
amount
Net unrealized
gains (losses) (B)
¥ 4,436,939 ¥ 33,115
(72,421)
1,284,779
1,109,090
59,993
20,884
115,695
(22,347)
—
1,245,474
1,104,367
93,109
47,997
3,148,478
20,288,361
3,118,385
11,831,122
9,491,777
5,338,853
3,178,906
2,060
27,875,841
4,287,847
16,268,062
7,319,931
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, 2015 and 2014, included gains of ¥29,870 million and ¥17,031 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, 2015 and 2014, were reduced by ¥29,870 million and ¥17,031 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).
29
SMFG 2015
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, 2015
Balances
(after provisions
and write-offs)
¥166.1
25.3
10.8
29.6
¥231.7
Change from
Mar. 31, 2014
¥18.8
24.7
1.5
5.4
¥50.5
Overseas
¥161.6
25.3
10.8
29.6
¥227.2
Change from
Mar. 31, 2014
¥22.5
24.7
1.5
5.4
¥54.1
Net unrealized
gains/losses
(after write-offs)
¥0.2
1.2
0.5
0.2
¥2.1
(Billions of yen)
March 31, 2014
Change from
Mar. 31, 2014
Balances
(after provisions
and write-offs)
¥(0.8) ¥147.2
0.6
9.3
24.2
¥(1.6) ¥181.3
(0.8)
(0.0)
0.1
Overseas
¥139.1
0.6
9.3
24.2
¥173.1
Net unrealized
gains/losses
(after write-offs)
¥1.0
2.0
0.5
0.2
¥3.7
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, 2015
(Billions of yen)
March 31, 2014
Change from
Mar. 31, 2014
Undrawn
commitments
Change from
Mar. 31, 2014
Loans
Undrawn
commitments
¥(25.9)
9.9
14.8
14.2
¥ 12.9
¥ 40.0
52.5
77.5
4.5
¥172.5
¥ 17.7
27.2
(30.5)
(0.3)
¥ 14.1
¥145.5
276.2
123.9
57.4
¥603.0
¥ 22.3
25.3
108.0
4.8
¥160.4
Loans
¥119.6
286.0
138.6
71.6
¥615.9
30
SMFG 2015
Risk Management
Basic Approach
As risks in the financial services increase in diversity and complexity,
management policies for each risk category, or whenever deemed
necessary, thus ensuring that the policies followed at any time
risk management—identifying, measuring, and controlling risk—has
are the most appropriate. The management of SMFG constantly
never been more important in the management of a financial holding
monitors the conduct of risk management at Group companies,
company.
providing guidance when necessary.
SMFG has established the basic principles of Groupwide risk
management in the “Policies on Comprehensive Risk Management.”
In the policies, 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 compre-
hensive risk management and manage each risk appropriately
according to its characteristics.
(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 (includ-
ing 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 categories
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.
Under SMFG’s Groupwide basic policies for risk management,
all Group companies periodically carry out reviews of the basic
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
Department—the unit’s planning department—comprehensively
and systematically manages all categories of risk in cooperation
■ Fundamental Principles on Comprehensive Risk Management (Excerpt major principles)
Basic Principles
Description
Risk management on a consoli-
dated basis
Various risks taken at the SMFG and the Group companies to be managed on a consolidated basis accord-
ing 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.
31
SMFG 2015
with the Corporate Planning Department. Moreover, the Internal
the special characteristics of each type of risk and the business
Audit Unit—independent of all business units—conducts periodic
activities of each Group company. We then allocate capital appro-
audits to ensure that the management system is functioning prop-
priately and effectively to each unit to keep total exposure to various
erly. Moreover, the Internal Audit Unit—independent of all business
risks within the scope of our resources, i.e., capital.
units—conducts periodic audits to ensure that the management
In the case of credit and market risk, we set maximum risk
system is functioning properly.
capital limits, which indicate the maximum risk that may be taken
Furthermore, under our system top management plays an
during the period, taking account the level of stress stipulated in
active role in the approval of basic policies for risk management.
business plans. In addition, for operational risk, we also allocate
The decision-making process for addressing credit, market, and
risk capital, and, for the Group as a whole, we set total risk capital
liquidity risk at the operating level is strengthened by the Credit
allocations within SMFG’s capital. Risk capital limits are subdivided
Risk Management Committee and the Market Risk Management
into upper limits for each business and unit including VaR and loss
Committee, which are subcommittees of the Management
limits. Therefore, by strictly observing these frameworks, SMFG
Committee. The Management Committee is also attended by the
maintains the soundness of the Group as a whole.
relevant department heads.
Integrated Risk Management
(1) Risk Capital-Based Management
In order to maintain a balance between risk and return as well as
ensure the soundness of the Group from an overall perspective, we
employ the risk capital-based management method. We measure
“risk capital” based on value at risk (VaR), etc. as a uniform basic
measure of credit, market, and operational risk, taking account of
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
basis, including each Group company.
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
Comprehensive
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
32
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
Comprehensive
Risk Management
Corporate Planning
Dept./Corporate Risk
Management Dept.
IT Planning Dept.
System Risk
Other Departments
Other Risks
SMFG 2015
(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.
Market
Risk
Risk
Capital-Based
Management
Banking Risk/Trading Risk
Strategic Equity Investment Risk
Market risk is the possibility that fluctuations in interest rates, foreign exchange rates, stock prices, or
other market prices will change the market value of financial products, leading to a loss.
Other Market-Related Risks
Operational Risk
Operational risk is the possibility of losses arising from inadequate or failed internal processes, people,
and systems or from external events.
Processing Risk
System Risk
ALM/
Funding Gap
Liquidity Risk
Management
by Risk Type
Other Risks
(Settlement Risk and Others)
■ Process of Stress Testing
Flow
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.
33
SMFG 2015
Risk Appetite Framework
SMFG aims as a financial Group centered on a commercial bank
Implementation of Basel Capital Accord
Basel III is an international agreement on minimum capital require-
to fulfill its corporate mission to “maximize our shareholders’ value
ments for internationally active banks. The standard has been
through the continuous growth of our business.” To this end, we
applied in Japan since March 31, 2013.
consider it important to categorize and quantitatively determine
The framework of Basel III is a continuation of Basel II, with
the types and levels of risk we are willing to take on or tolerate
multiple approaches to calculating capital requirements. With regard
to drive earnings growth (risk appetite), and secure an appropri-
to credit risk, SMFG has been using the Advanced Internal Ratings
ate return. We have developed and implemented a risk appetite
Based (AIRB) approach since March 31, 2009, and for operational risk
framework that comprehensively incorporates the above mentioned
the Advanced Measurement Approach (AMA), since March 31, 2008.
integrated risk management framework. We have also formulated
Risk assets subject to the Basel Capital Accord totaled
a Risk Appetite Statement that sets out our approach and specific
¥66,136.8 billion as of March 31, 2015, up ¥4,513.5 billion from
risk appetites, which we distribute internally to foster a sound risk
March 31, 2014. The main factor behind the increase in risk-
culture.
(1) Risk Appetite Structure
We have clearly categorized our stances on risk taking and risk
management into financial soundness, profitability, liquidity and
others. As a general rule, we strive to achieve a quantitative grasp
of the risks using risk appetite indicators.
(2) Setting Risk Appetite Indicators
The target levels and limits of risk appetite indicators are decided
by the Management Committee and the Board of Directors at the
beginning of each fiscal year to be consistent with management
targets, financial objectives and business plans, based on the
risk-taking policy and portfolio plan. We also set various risk capital
limits and upper limits for credit, market and liquidity risks as to be
consistent with business plans, and the target levels and limits of
risk appetite indicators.
(3) Monitoring Risk Appetite Indicators
We monitor the risk appetite indicators during the period. If they
deviate from target levels or breach limits and so forth, the frame-
work allows us to discuss reviewing the business plans or other
measures as necessary. Moreover, for certain risk appetite indica-
tors we also conduct testing to ensure that they will retain a certain
level even under stress conditions.
■ Overview of Risk Appetite Framework at SMFG
weighted assets was credit risk and the main increases included an
increase in overseas assets, the effect of the yen’s depreciation, and
an increase in the balance due to a rise in stock prices.
■ Risk-Weighted Assets as of March 31, 2015
Credit risk
Market risk
Operational risk
Total
(Trillions of yen)
March 31,
2014
March 31,
2015
Increase
(decrease)
57.0
1.7
2.8
61.6
61.3
2.0
2.8
66.1
+4.3
+0.2
(0.0)
+4.5
■ Risk Assets at Individual Departments
(Trillions of yen)
Sumitomo Mitsui
Financial Group
Credit risk
Market risk
Operational risk
61.3
2.0
2.8
Wholesale
Credit risk
Retail
Credit risk
International
Credit risk
Other
Credit risk
15.6
15.3
7.3
7.1
17.7
16.8
25.6
22.1
Business
and
financial
targets
Business
plans
Risk appetite
Risk appetite indicators
Financial
soundness
Common Equity Tier I ratio
Risk capital, etc.
Profitability
Risk-return indicators, etc.
Liquidity
LCR, NSFR, etc.
Others
Limits
Monitoring
Note: Other includes Treasury Unit, Investment Banking Unit and Group companies.
Risk-taking
policy and
portfolio
planning
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.
34
SMFG 2015
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 to
by SMFG to assess and manage credit risk on a Groupwide basis
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.
■ SMBC’s Credit Risk Management System
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
assets) and controls the bank’s entire credit risk. Further, the Credit
Shareholders’ Meeting
Board of Directors
Management Committee
Corporate Auditors/ Board of Corporate Auditors
Office of Corporate Auditors
Internal Audit Unit
Designated Board Members
Internal Audit Dept.
•Audits credit risk management
•Audits credit risk evaluation management
Credit Review Dept. •Audits asset audit management system
Risk Management Unit
Designated Board Members
Corporate Risk
Management Dept.
•Supervises risk management
•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
•Plans and proposes credit policies for
particular risk assets
Credit Portfolio
Management Dept. •Undertakes active portfolio management
Retail Banking Unit
Officer in charge
Deputy head
Wholesale Banking Unit
Officer in charge
Deputy head
Business Units
International Banking Unit
Officer in charge
Deputy head
Division head
Division head
Division head
Credit Dept.
Credit Dept.
I & II
Corporate Credit Dept.
Credit Administration
Dept.
Credit Management
Dept.
Credit Dept.,
Asia Pacific Div.
Credit Dept.,
Americas Div.
Credit Dept.,
Europe Div.
Individuals and SMEs
Small and
Medium-Sized Enterprises
Large Domestic
Corporations
Structured Finance
Credit Dept.
Structured Finance
(Investment Banking Unit,
Japan)
Management of
problem loans
(prepare and implement
plans to dispose or
restructure, sell off)
Deputy head in charge
Corporate
Research Dept.
•Industry trend research
•Credit assessment of major industry players, clients under
observation and clients whose credit rating is to be revised, etc.
Overseas Banks
International Dept.
Credit Management
Credit Dept., East Asia
International Banking Unit
Non-Japanese companies
(Japan and East Asia)
Overseas Corporations
(Americas)
Overseas Corporations
(Europe)
Non-Japanese
companies
(Asia and Asia Pacific
excluding clients of the
International Banking Unit)
Global Aircraft
Credit Dept.
Aircraft related
(Overseas)
35
SMFG 2015
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 polit-
grades, while credit departments focus on the analysis and manage-
ical and economic situation, as well as its current account balance
ment of customers and transactions with relatively high credit risk.
and external debt. Self-assessment is the obligor grading process
The Credit Administration Department is responsible for han-
for assigning lower grades, and the borrower categories used in self-
dling NPLs of borrowers classified as potentially bankrupt or lower,
assessment are consistent with the obligor grade categories.
and draws up plans for their workouts, including write-offs. It works
Obligor grades and facility grades are reviewed once a year, and,
to efficiently reduce the amount of NPLs through Group company
whenever necessary, such as when there are changes in the credit
SMBC Servicer Co., Ltd., which engages in related services, and by
situation.
such means as the sell-off of claims.
There are also grading systems for loans to individuals, and proj-
Through industrial and sector-specific surveys, and studies of
ect finance and other structured finance tailored according to the risk
individual companies, the Corporate Research Department works to
characteristics of these types of assets.
form an accurate idea of the circumstances of borrower companies
The Credit & Investment Planning Department centrally manages
and quickly identify those with potentially troubled credit positions
the internal rating systems, and properly designs, operates, supervises,
as well as promising growth companies.
and validates the grading models. It validates the grading models
The Internal Audit Unit, operating independently of the business
(including statistical validation) of main assets following the procedures
units, audits asset quality, accuracy of gradings and selfassess-
manual once a year, to ensure their effectiveness and suitability.
ment, and state of credit risk management, and reports
the results directly to the Board of Directors and the
■SMBC’s Obligor Grading System
Management Committee.
SMBC has established the Credit Risk Committee,
as a consultative body, to round out its oversight
system for undertaking flexible and efficient control of
Obligor Grade
Domestic
(C&I), etc.
Overseas
(C&I), etc.
Definition
Borrower
Category
Financial Reconstruction
Act Based Disclosure
Category
(Domestic)
credit risk, and ensuring the overall soundness of the
J1
G1
Very high certainty of debt repayment
bank’s loan operations.
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
example, credits to commercial and industrial (C&I) com-
J2
G2
High certainty of debt repayment
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
panies, individuals for business purposes (domestic only),
J8
G8
Currently not bankrupt, but experiencing business difficulties,
making insufficient progress in restructuring, and highly
likely to go bankrupt
sovereigns, public-sector entities, and financial institu-
tions are assigned an “obligor grade,” which indicates the
borrower’s creditworthiness, and/or “facility grade,” which
indicates the collectibility of assets taking into account
transaction conditions such as guarantee/collateral, and
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
36
Potentially
Bankrupt
Borrowers
Effectively
Bankrupt
Borrowers
Bankrupt
Borrowers
Doubtful Assets
Bankrupt and
Quasi-Bankrupt
Assets
SMFG 2015
(b) Quantification of Credit Risk
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 in
assessment process. To respond proactively and promptly to cus-
a database to calculate the credit risk. Then, based on these param-
tomers’ funding needs—particularly those of SMEs—we employ a
eters, we run a simulation of simultaneous default using the Monte
standardized credit risk assessment process for SMEs that uses a
Carlo method to calculate our maximum loss exposure to the esti-
credit-scoring model. With this process, we are building a regime for
mated amount of the maximum losses that may be incurred. Based
efficiently marketing our Business Select Loan and other SME loans.
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 to
movements (stress tests), and the results are used for making
efficiently make rational decisions on housing loan applications, and
optimal decisions across the whole range of business operations,
to reply to the customers without delay. It also facilitates the effective
including formulating business plans and providing a standard
management of credit risk, as well as the flexible setting of interest
against which individual credit applications are assessed.
rates.
(2) Framework for Managing Individual Loans
(a) Credit Assessment
At SMBC, credit assessment of corporate loans involves a variety
of financial analyses, including cash flow, to predict an enterprise’s
capability of loan repayment and its growth prospects. These
quantitative measures, when combined with qualitative analyses of
industrial trends, the enterprise’s R&D capabilities, the competitive-
ness of its products or services, and its management caliber, result in
a comprehensive credit assessment. The loan application is analyzed
in terms of the intended utilization of the funds and the repayment
We also provide loans to individuals who rent out properties
such as apartments. The loan applications are subjected to a precise
credit risk assessment process utilizing a risk assessment model
that factors in the projected revenue from the rental business. The
process is also used to provide advice to such customers on how to
revise their business plans.
(b) Credit Monitoring System
At SMBC, in addition to analyzing loans at the application stage,
the Credit Monitoring System is utilized to reassess obligor grades
and review self-assessment and credit policies so that problems
■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
37
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 2015
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 37.
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 bor-
rower 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 subsidiar-
ies 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.
Japanese Institute of Certified Public Accountants. Self-assessment
is the latter stage of the obligor grading process for determining the
38
SMFG 2015
Self-Assessment
Borrower Categories
Standards for Write-Offs and
Provisions
write-offs and provisions, and disclosure of problem assets at March
31, 2015, please refer to page 177.
Normal Borrowers
Borrowers Requiring Caution
Potentially Bankrupt Borrowers
Effectively Bankrupt/ Bankrupt
Borrowers
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.
General reserve
Notes
Specific reserve
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 uncollectible
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
39
SMFG 2015
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, 2015
14.5
7.2
1.3
6.9
September 30, 2014
16.3
7.9
1.6
8.5
13.8
1.7
15.4
3.4
fiscal 2014
Maximum
20.2
12.5
3.6
11.0
19.0
5.9
Minimum
9.9
5.4
0.7
3.8
8.9
1.2
Average
14.8
7.4
1.7
7.0
13.9
3.2
(Billions of yen)
March 31, 2014
9.5
5.2
0.6
4.1
8.5
1.1
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)].
40
SMFG 2015
(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.
ness of the model is later verified through back-testing.
The table on the previous page shows the VaR results of the
However, as back-testing cannot take into account major
Group’s trading activities during fiscal 2014. Because of the nature
market fluctuations that have not actually occurred historically, we
of trading, the VaR fluctuated sharply during fiscal 2014, in line with
supplement this method with the use of stress testing.
changes in our investment positions.
b. Banking activities
This internal model employed by SMBC undergoes regular
auditing by an independent auditing firm to ensure that it operates
Banking activities are market operations which gain profits by con-
appropriately.
trolling interest rates and term period for assets (loans, bonds, etc.)
b. Validity verification process
and liabilities (deposits, etc.). At SMFG, in the same way as in the
i Outline of validity verification
case of trading activities, we assess and manage the market risk of
SMBC uses back-testing as a method for verification of the valid-
banking activities on a daily basis, utilizing VaR and other tools.
ity of the internal model. VaR figures calculated by the internal
The following table shows the VaR results of the Group’s bank-
model are compared with actual portfolio profit-and-loss figures
ing activities during fiscal 2014. The VaR of the Group decreased
on a given day, to compute an appropriate VaR level and confirm
on March 31, 2015 compared with on March 31, 2014 primarily
the adequacy of risk capital management.
reflecting an decreased position in equities.
ii Back-testing results
The results of back-testing on SMBC’s trading book conducted in
fiscal 2014 are shown below. The data point under the diagonal
line indicates a loss exceeding VaR for that day. Only one data
point under the diagonal line has 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, 2015
39.0
18.0
31.1
September 30, 2014
45.0
18.7
37.3
37.8
34.9
44.0
41.0
fiscal 2014
Maximum
46.1
24.6
40.4
45.1
42.5
Minimum
36.6
14.4
28.5
35.6
32.9
Average
41.7
19.2
33.8
40.7
37.5
(Billions of yen)
March 31, 2014
41.5
18.6
32.8
40.3
35.9
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)
8.0
6.0
4.0
2.0
0
–2.0
–4.0
–6.0
0
Actual Profit or Loss (¥ billion)
2.0
4.0
6.0
8.0
VaR (¥ billion)
8.0
6.0
4.0
2.0
0
–2.0
–4.0
–6.0
0
Actual Profit or Loss (¥ billion)
2.0
4.0
8.0
6.0
VaR (¥ billion)
8.0
6.0
4.0
2.0
0
–2.0
–4.0
–6.0
0
Actual Profit or Loss (¥ billion)
2.0
4.0
6.0
8.0
VaR (¥ billion)
41
SMFG 2015
iii Reasons for losses exceeding the VaR
1 capital, significantly below this maximum level permitted under the
In all cases, these were the result of significant fluctuations on the
Act on Financial Institutions (etc.)’, Limits for Share, etc. Holdings.
foreign exchange and interest rate markets.
c. Indicators substitute for the back-testing method
SMFG employs, as a method substitute for the back-testing
method, the VaR wherein presumption for the model such as obser-
vation period changes.
d. Changes in model from previous fiscal year
The model in use remains unchanged from that employed in the
previous fiscal year.
(c) Stress Testing
The market occasionally undergoes extreme fluctuations that
exceed projections. To manage market risk, therefore, it is important
to run simulations of unforeseen situations that may occur in finan-
cial markets (stress testing). SMBC conducts stress tests regularly,
assuming various scenarios, and has measures in place for irregular
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
on a consolidated basis at March 31, 2015, substantially below the
20% criterion.
(e) Management of Stocks Held for Strategic Purposes
SMBC establishes risk allowance limits on stocks held for strategic
purposes and monitors the observance of these limits in order to
control stock price fluctuation risk adequately. More specifically, VaR
(1 year holding period) computed from profit and loss simulations
based on historical market fluctuation data and aggregated fluctua-
tion in market price from the beginning of the fiscal year are subject
to the risk capital limit management and monitored on a daily basis.
(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-
uid supplementary funding sources,” and “establishing contingency
plans.”
A funding gap is defined as the maturity mismatch between
source of funds and use of funds. SMBC actively manages this
funding gap by setting limits on the size of the gap over a given
time horizon and limiting reliance on short-term funding. These limits
are set in place on both a bank-wide basis and individual branch
basis, and take into account cash management planning, systemic
factors, and funding status, among other factors. Additionally, fund-
ing gap limits are set for individual currencies if necessary. SMBC
actively monitors the funding gap on a daily basis.
Further, stress tests are regularly carried out by simulating the
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
smoothly raise the required fund even during market disruption.
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
the respective circumstances.
Furthermore, SMBC has been reducing its strategic equity
■ Composition, by Industry, of Listed Equity Portfolio
investments and the outstanding amount is now around 20% of Tier
■ Decline in Economic Value Based on Outlier Framework
SMBC (consolidated)
SMBC (nonconsolidated)
March 31, 2014 March 31, 2015 March 31, 2014 March 31, 2015
(Billions of yen)
Total
Impact of Yen
interest rates
Impact of U.S. dollar
interest rates
Impact of Euro
interest rates
83.0
31.1
25.7
18.6
132.6
21.2
57.4
25.5
66.7
23.8
21.5
18.2
117.9
17.3
52.6
24.5
Percentage of total capital
0.9%
1.3%
0.8%
1.2%
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).
(%)
25
20
15
10
5
0
42
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SMFG 2015
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
43
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 2015
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 identi-
fies 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 opera-
tions 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 nonconsolidated basis; and it is
■ 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
44
SMFG 2015
measured according to each of seven event types set forth by Basel
Capital Accord. The operational risk equivalent amount is calculated
4. Processing Risk Management
Processing risk is the possibility of losses arising from negligent
based on AMA by simply consolidating the amounts of all event
processing by employees, accidents, or unauthorized activities.
types. For the measurement of SMFG consolidated basis, how-
SMFG recognizes that all operations entail processing risk.
ever, the operational risk equivalent amount is calculated by simply
We are, therefore, working to raise the level of sophistication of
consolidating the amounts of all eight event types consisting of the
our management of processing risk across the whole Group by
seven event types and losses relating to the repayment of excess
ensuring that each branch conducts its own regular investigations
interest. The measurement accuracy is ensured by implementing
of processing risk; minimizing losses in the event of processing
the regularly conducted verifications of the said quantification model
errors or negligence by drafting exhaustive contingency plans; and
at 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 SMFG’s
other Group companies not applicable for AMA and in preparation
Groupwide basic policies for risk management, the basic admin-
to become applicable for AMA, it is calculated according to the
istrative regulations are defined as “comprehending the risks and
Basic Indicator Approach (BIA), and the operational risk equivalent
costs of administration and transaction processing, and managing
amount for SMFG consolidated basis and SMBC consolidated
them accordingly,” and “seeking to raise the quality of adminis-
basis are calculated by consolidating such amount calculated
tration to deliver high-quality service to customers.” Adding new
based on BIA with the operational risk equivalent amount calculated
policies or making major revisions to existing ones for processing
based on AMA.
(6) Risk Mitigation Initiatives
To mitigate risks using the quantitative results of the AMA, SMFG
risk management requires the approval of both the Management
Committee and the Board of Directors.
In the administrative regulations, SMBC has also defined spe-
and SMBC implement risk mitigation measures for high severity
cific rules for processing risk management. The rules allocate pro-
scenarios. Furthermore, the risk assets calculated by quantification
cessing risk management tasks among six types of departments:
are allocated to each business unit of SMBC and other Group com-
operations planning departments, compliance departments, opera-
panies for increasing awareness of operational risks internally in the
tions departments, transaction execution departments (primarily
Group companies, improving the effectiveness of their operational
front-office departments, branches, and branch service offices),
risk management and mitigating operational risks of the entire Group.
internal audit departments, and the customer support departments.
In addition, 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
i
l
i
t
y
o
f
o
c
c
u
r
r
e
n
c
e
P
r
o
b
a
b
i
l
i
t
y
o
f
o
c
c
u
r
r
e
n
c
e
Repeat (e.g., 1 million times)
Calculate aggregated
annual loss amount
(e.g., 450)
Total
Aggregated Loss Distribution
Frequency x Severity
99.9%
Aggregated annual loss amount
(
f
r
e
q
u
e
n
c
y
)
0.4
0.3
0.2
0.1
0
P
r
o
b
a
b
i
l
i
t
y
o
f
o
c
c
u
r
r
e
n
c
e
45
x conversion factor
99.0%
SMFG 2015
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 regu-
lations 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 sys-
tem consisting of computer centers in eastern and western Japan.
And to maintain the confidentiality of customer information and pre-
vent information leaks, sensitive information is encrypted, unauthor-
ized external access is blocked, and all known countermeasures to
secure data are implemented. There are also contingency 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 patterns emerge.
46
SMFG 2015
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 SMFG is willing to take on or tolerate to
drive earnings growth.
Risk appetite framework
A framework in which SMFG’s risk appetite is clarified and appropriately
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 SMFG seeks to achieve the appropriate bal-
ance between risk and return 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.
47
SMFG 2015 Corporate Social Responsibility (CSR)
Contributing to
the Sustainable Development of Society
Today, modern society is faced with diverse issues such as global
warming, rapid population growth, and a declining birthrate and
aging of the population in advanced countries. The SMFG Group
believes that it is our Group’s social responsibilities, our CSR, to
remind us of and practice the roles as the global financial group for
resolving issues for the sustainable development of the society.
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.
Integral Development of CSR and
Business Strategies
The SMFG Group believes that CSR is the foundation for SMFG
Group’s business strategies which should be integrally incorporated
with business strategies for achieving the management policies and
goals. In another words, it is the concept that we consistently verify
and confirm according to the basic policy of CSR whether the direction
of our business strategies promoted by our Group corresponds with
our vision in 10 years of “becoming the highly trusted global financial
group which leads Japan and Asia, and grow along with clients”; and
then, we reflect the needs of clients and society in our CSR activities.
We believe that fulfilling CSR is truly “management itself,” and seri-
ously committing to the implementation of CSR would be the shortest
and quickest way to achieve our management policies and goals.
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
• United Nations Environment Programme 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
■ 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.)
48
SMFG 2015
For Building Relations with Respective
Stakeholders
Clients
(Principle communication means)
Toll-free telephone service (domestic calls only),
CS surveys and questionnaires conducted
at branches
Society and Environment
(Principle communication means)
Cooperation with NGOs and NPOs
Environmental Business Forum
SMFG
Shareholders and the Market
(Principle communication means)
General Shareholders’ Meeting, small
meetings, annual report
Employees
(Principle communication means)
Employee awareness surveys
Exchanging opinions with management
• Clients: We shall provide high value-added products and services to clients
and develop along with clients.
• Shareholders and the Market: With appropriate information disclosure, we
shall maintain sound management and increase shareholder value through
improvement of the internal control system.
• Society and Environment: We shall strive to consistently and proactively
engage in social and environmental activities; contribute to the society; and
preserve the earth’s environment.
• Employees: We shall develop the kind of corporate culture which respects
employees and allow them to exercise one’s full potential without any
hindrance.
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 and G4.0)” of GRI (Global
Reporting Initiative) is referred to for editing of CSR website and preparation
of CSR.
* 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
21 evaluation criteria provided for reporting performance status of 10
principles of the signed United Nations Global Compact.
SRI Indices
The Group’s CSR activities have been highly evaluated by the
market and included in internationally-known, major SRI (“Socially
Responsible Investment”) Indices. The SRI Index is a standard
for investment 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
Interaction with
stakeholders
Customer satisfaction
Pleasant workplace and
work environment
Corporate governance
Risk management
Rigorous information management
Fair business practices and competition
Countermeasures for anti-social forces
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
priority issues were determined taking into account the opinions of
experts through discussions. In fiscal 2014, we promoted measures
for resolving priority issues by reviewing through discussions with
internal and external stakeholders and respective Group companies.
We will continue to engage in specific activities for Group com-
panies upon further identifying the items which should be worked
on according to priority issues.
49
SMFG 2015
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
50
SMFG 2015
Corporate Governance
Our Position on Corporate Governance
SMFG and its Group companies follow the SMFG management
philosophy set forth as the universal guide for the Group man-
agement and consider this philosophy as the foundation for any
corporate activities. We are working to improve the effectiveness of
corporate governance as we consider strengthening and enhance-
ment of corporate governance as one of the top prioritized issues
in order to achieve the management philosophy. Further, SMFG
establishes its “SMFG Corporate Governance Guideline” as its
principles and guidelines to be referred to for corporate gover-
nance, in order to improve sustainable growth and medium- and
long-term corporate values by preventing the occurrence of mis-
conduct and unsound corporate situations and through achieving
effective corporate governance with these measures.
The SMFG Corporate Governance System
As a company with a board of corporate auditors, SMFG
implements the system which enhances appropriateness and
efficiency of audit for the board of directors to appropriately
exercise its oversight function, and for corporate auditors to
independently exercise the auditing function, and the board
of corporate auditors to establish auditing policies by resolu-
tion. In terms of incorporating external views and opinions into
management, on June 26, 2015, we have increased the number
of outside directors and outside corporate auditors in total from
six to eight; and five out of thirteen directors and three out of six
corporate auditors are outside directors and corporate auditors.
As for corporate auditors, they attend important SMFG
meetings including the Board of Directors meetings, in accor-
dance with the audit policy and allocation of audit procedures
as set forth by the Board of Corporate Auditors, and receive
reports from directors and others on the execution status of
duties; and they audit such execution status of SMFG directors
through reviewing material approval documents, communicating
with internal audit department and subsidiaries, and hearing
reports made by 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
president 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 four internal committees: the Auditing
Committee, the Risk Management Committee, the Compensation
Committee, and the Nominating Committee. All three outside
directors have been appointed for these committees in order to
objectively oversee corporate governance. As the objectivity is
explicitly required for both Auditing Committee and Compensation
Committee, the outside directors are appointed as the chairmen
for these committees to further enhance such required objectivity.
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 commit-
tee 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, seven directors out of thirteen directors (out of
which five directors are outside directors) of SMFG also serve
as the directors for SMBC to oversee its business execution. As
for three companies of Sumitomo Mitsui Finance and Leasing
Company, Limited, SMBC Consumer Finance Co., Ltd., and
The Japan Research Institute, Limited of SMFG’s directly-
owned subsidiaries, the SMFG directors also serve as the direc-
tors for each of these subsidiaries to oversee their business.
Furthermore, in order to maintain sound management,
SMFG sets forth a system which firmly maintains the appropri-
ateness of SMFG’s business operations, as the internal control
regulations for SMFG and its Group companies pursuant to the
Japanese Company Law. SMFG considers that the develop-
ment of a solid management system is an important manage-
ment 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 opera-
tions 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 president of
the bank who controls the overall business operations; does not
concurrently hold the position of executive officer; and mainly over-
sees the business execution. Furthermore, SMBC further strength-
ens the overseeing function by appointing three outside directors
out of seventeen directors for the bank. The executive officers, who
manage business operations, are appointed by the Board.
There are a total of eighty-one executive officers, including
the president, as of June 30, 2015 (out of eighty-one executive
officers, eleven executive officers concurrently serve as directors).
The Management Committee is set up under the Board
to serve as the highest decision-making body for the bank.
The Management Committee is chaired by the president of the
bank, and the executive officers are appointed by the president.
The committee members consider important management
issues based on policies set by the Board of Directors, and
the president has the authority to make the final decision after
considering the committee’s recommendations.
Furthermore, pursuant to the decisions made by the Board,
the president designates certain members of the Management
Committee to be Authorized Management Committee members in
charge of particular Head Office departments or units. All of these
designated individuals are in charge of implementing the directives
of the Management Committee within the businesses they oversee.
51
SMFG 2015
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
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 proper
operations of the Group and the soundness 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 effectively operated.
Additionally the Audit Department is responsible for the overall
supervision of the internal audit functions of the Group compa-
nies, for appropriateness and effectiveness by monitoring the
progress and performance of each company’s internal auditing
activities and conducting audits on the common subject among
groups as deemed necessary. Based on these activities, the
Audit Department provides recommendations and guidance
to the business units and departments as well as to the Group
companies.
At SMBC, we have established the Internal Audit Unit which
is independently operated from other business activities. Under
the 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, including the functional
status 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 “Theme audit” for verifying the bank’s overall or cross-
departmental conditions of the internal control systems.
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
52
SMFG 2015
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 48) 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 meet-
ings with individual companies.
Reporting System for Inappropriate Accounting
and Auditing Activities
SMFG has established the “SMFG Group Alarm Line,” the
whistle-blowing system which can be used by all employees,
including employees of group companies, for 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 mis-
conduct 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.
Sumitomo Mitsui Financial Group, Inc.
Board of Directors
Management Committee
Corporate Auditors
Audit
Report
Audit Dept.
Directions
Report
Compliance Committee
Audit/Monitoring
Group Company
Audit
Audit/Monitoring
General Affairs Dept.
Compliance System
Oversight and
Guidelines
Report
Departments and Offices
General Manager responsible for compliance
Compliance Officers to assist and monitor General Managers
Management Report
Group Companies
SMBC, Sumitomo Mitsui Finance and Leasing, SMBC Nikko Securities, SMBC Friend Securities,
Sumitomo Mitsui Card, Cedyna, SMBC Consumer Finance, and JRI
* SMFG Card & Credit, Inc. is an intermediary holding company for Sumitomo Mitsui Card and Cedyna.
53
SMFG 2015
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, main-
tain high ethical standards, and act fairly and sincerely. Therefore,
SMBC considers that being fully compliant with laws and regula-
tions is one of the most critical issues for management 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 2015, SMBC
is currently in the process of enhancing its overseas compliance
system; strengthening its management system for anti-money
laundering and combatting the financing of terrorism (“AML/
CFT”); improving its Group compliance system; and enhancing
its compliance system for financial products.
54
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 cross-departmental
compliance members, chaired by the director in charge of com-
pliance, has been created in order to comprehensively 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 03-6206-3988
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:
(Japan) 03-3669-9833
Business hours:
Mondays through Fridays
(except public and bank holidays)
9:00 am to 5:00 pm
SMFG 2015
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 193 financial institutions (as of March 31, 2015).
Based on these principles, the Group continues to expand
its environmental financing activities in Japan.
Environmental Action Plan and PDCA Procedures
The Group Environmental
Policy
Implementation of
environmental initiatives
Reduce environmental
implications
Manage environmental risks
Promote environmental
businesses
SMFG
PLAN
DO
CHECK
ACT
Officer in charge of environmental issues:
Officer responsible for environment management: GM of Group CSR Dept., Corporate Planning Dept.
ISO14001 Secretariat:
Officer in charge of Corporate Planning Dept.
Group CSR Dept., Corporate Planning Dept.
55
SMFG Card & Credit
SMBC
Sumitomo Mitsui Card
SMBC Friend Securities
Japan Research Institute
Sumitomo Mitsui
Finance and Leasing
Corporate Planning Dept.
Corporate Planning Dept.
Corporate Planning Dept.
General Affairs Dept.
Operational Section
SMBC Nikko Securities
Communications Dept.
SMFG 2015
Reducing Environmental Impact
• Initiatives for Energy Consumption of Facilities
SMFG sets environmental objectives for reducing energy con-
sumption such as electricity for each fiscal year, and it assert-
ively strives to implement energy-saving measures to reach the
targeted goal.
· SMBC, SMBC Nikko Securities, SMBC Friend Securities, and
SMBC Consumer Finance shall install energy-saving equip-
ment such as LED lighting for the relocation or renovation of a
branch, taking into consideration the environment awareness.
· For the SMBC East Tower
which will be completed in
the summer of 2015, we
have taken into consideration
the environmental aware-
ness on the following issues:
1) utilization and preservation
of nature; 2) implementation
of highly efficient systems;
3) re d u c t i o n o f a d v e r s e
environmental effects; and
4) creation of a sustainable
building. We are expected to
incorporate diverse energy-
saving technologies to reduce approximately 35% of CO2
emission*. (*Compared to average office buildings).
SMBC East Tower in Tokyo
· As the Osaka Head Office building was built over 80 years
ago, the two-year renovation of the building was completed
in May 2015. For the renovation, we have installed high-
performing exterior wall frames, LED lightings and solar
panels while retaining the original charm of the facilities, by
s u b s t a n t i a l l y
improving the
environmental
p e r f o r m a n c e
in addition to
appropriately
a d a p t i n g
t o
modern work
styles.
Osaka Head Office
In July 2012, SMBC and JRI, as part of their own energy-
saving initiatives, implemented the solar power generation
equipment in the SMFG’s main computer center for providing
energy during peak business hours.
56
Managing Environmental Risks
• Environmental and social risks in loan (credit) activities
SMBC believes it is important to take into account the envi-
ronmental risks for conducting credit assessment. Factoring
environmental risks in the credit assessment (environmental
credit risks) is stipulated in SMBC’s Credit Policy, which sets
forth the universal and basic philosophies, guidelines and rules
for credit operations taking into consideration the management
principle and the rules of conduct. For example, to deal with the
risks of soil and asbestos contamination in real estate pledged
as collateral, SMBC requires contamination risk assessment
for such real estate collateral meeting certain criteria. If con-
tamination risks are found to be high, the assessed value of the
potential risks will be deducted from its value. Furthermore, our
Credit Policy clearly stipulates that 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
for determining,
principles
assessing and managing envi-
ronmental and social risks in
project financing and has established the Environment Analysis
Department (EAD) to assess the environmental and social risks
of large-scale development projects in accordance with the
principles. In June 2013, for the Equator Principles, the scope
was expanded and the assessment criteria were strengthened.
SMBC also revised its internal procedures in accordance
with the revised Equator Principles to improve its system for
assessing environmental and social risks. Furthermore, SMBC
continues to improve its environmental and social risk assess-
ment systems which received a third-party guarantee made by
Ernst & Young Sustainability Co., Ltd. in 2014 with respect to
application status of the Equator Principles.
• Lawful disposal of properties at the expiration of leases
Sumitomo Mitsui Finance and Leasing is completely in compli-
ance with environment-related laws and regulations to prevent
contamination of the environment due to illegal disposals of
industrial waste materials triggered by the expiration of leases.
In addition, multi-phased assessment mainly in terms of compli-
ance, local research and interviews are conducted annually in
order to prudently select the most appropriate company that
handles transportation and disposing of waste materials at the
time of the expiration of a lease.
SMFG 2015
Environmental Businesses
• Environmental contributions through core businesses
The Group considers environmental businesses as a means
to preserve and improve the global environment through its
core business operations. As an example: SMBC Environmental
Assessment Loan/Private Placement Bond is provided for cli-
ents for promoting their environmental management. Further,
the Growth Industry Cluster Department work is not limited to
the maintenance or improvement of the global environment
but also includes the economic development of each coun-
try through providing support for environment infrastructure
improvement projects in emerging countries mainly in Asia and
renewable energy projects.
In addition, the Kansai Urban Banking Corporation jointly
participated with an affiliated organization of Osaka Prefecture in
the exhibit for “Biwako Kankyo (Environmental) Business Messe
2014,” focusing on environmental issues to introduce technolo-
gies and services owned by companies in Osaka Prefecture to
companies in Shiga Prefecture.
• Initiatives for environmental businesses by group companies
Please refer to the chart shown below for details of the mea-
sures taken for environmental businesses.
Initiatives for Environmental Businesses by Group Companies
Company
SMFG
Program / Product
SAFE, corporate environmental
magazine
SMFG Environmental Business Forum
SMBC*1 /
JRI*2
SMBC Environmental Assessment Loan/
Private Placement Bond
SMBC 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
Promotion of Housing Loans for
Environment-Friendly Residences
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 15 of our clients’ companies
set up booths with “Environment,” “Water, Resources, New Energies” as themes, and each client presented or demonstrated respective
environmental initiatives.
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 con-
structed by companies, pursuant to the assessment criteria created by SMBC and Woonerf Inc. (formerly known as 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” 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 plan 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 provides advisory services for a newly established environmentally innovative fund which was set up
principally by the Brazilian Development Bank.
In March 2012, SMBC executed a Memorandum of Understanding with Development Bank of Mongolia for financial cooperation for environ-
ment and infrastructure projects that reduce greenhouse gas emissions. SMBC continues to develop a 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.
This fund invests mainly in shares of companies around the world with growth potential that 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 offers preferential interest rates to borrowers either for the purchase or construction of a residence entirely powered by electricity or
ecologically-friendly residence.
57
SMFG 2015
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
Nikko /
Friend*5
Friend
SMCC*6 /
Cedyna
Cedyna
SMBCCF*7
JRI
Minato*8
Promotion of Marketing Activities
utilizing iPad
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
“Minato ECO Loans” for Corporations
certified with Environment
Authentication
For individual clients:
“Minato ECO Housing Loan”
“Minato ECO Product Purchase Loan”
Minato ECO Private Placement Bond
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. The funds procured by the issue of these bonds will be utilized solely for loans
provided for global warming prevention projects in emerging countries.
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 that 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.
iPads are being distributed to the entire marketing team enabling them to obtain information necessary from the data stored to support the
reduction of paper usage and CO2 emissions.
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.
Minato Bank offers loans with preferential interest rates to corporate clients who have been certified with either of the “Kobe Environmental
Management System (“KEMS”),” “Eco-Action 21” or “ISO14001.”
Minato Bank offers environment-friendly loans with discounted interest rates especially made for clients who plan to purchase or install
new-energy or energy-saving equipment (solar power generation systems, ECOWILL, EcoCute, solar thermal systems, ENE-FARM, etc.) or
clients who plan to purchase or construct residences installed with such equipment or residences which have been rated at least with 4
“hydrangea flowers” for their overall rating assessed by the criteria of CASEBEE Kobe (Kobe city’s “Comprehensive Assessment System for Built
Environment Efficiency”).
Minato Bank provides preferential treatment for issuing fees of private placement bonds, which meet the issuance criteria set forth by our bank
for bank-guaranteed private placement bonds, offered by corporations certified with either of the “KEMS,” “Eco-Action 21” or “ISO14001.”
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.
A predetermined, preferential interest rate for the loan is given to clients who met certain requirements for environment (receipt of certification
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
58
SMFG 2015 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. Further, the Group will undertake its social contribution activities
as a corporation in order to encourage each employee to participate in social contribution activities.
Local and Overseas Communities
• SMBC Volunteer Fund
SMBC has a system for volunteering executives and employees to
have from ¥100 up to ¥1,000 deducted from their monthly salaries
to donate to volunteer organizations. More than 11,000 employees
participate in this program, as of March 2015. The organizations
are selected based on thorough investigations and discussions by
the panel of experts and employees. In fiscal 2014, donations were
made to 31 organizations which engage in resolving social issues in
Japan and overseas.
Organizations which provide support for awareness-raising
activities for the prevention of child abuse, childcare sup-
port activities, food assistance program for people living in
poverty, and support people with disabilities to become self-
sustained, and other activities.
Organizations which provide support for re-forestation activi-
ties in Indonesia and Malaysia, health support programs for
schools in East Timor, and agricultural villages in Zambia to
become self-sustained, and other activities.
Further, 943 employees equaling to more than 80% of
employees of the Group company of Sakura KCS have vol-
unteered (as of May 1, 2015) for welfare and environmental
contribution activities.
• Volunteering Programs for Executives and Employees
SMBC conducted volunteer activities participated in by execu-
tives and employees in collaboration with organizations that
engage in resolving social
issues, primarily recipients of
volunteer funds. In fiscal 2014,
the number of participants
increased to include respective
group companies’ employees
and their family members,
and the cumulative number of
participants was 441 people.
Supporting the Recovery after the Great East
Japan Earthquake
• Support Fund for Great East Japan Earthquake
SMBC established the system solely utilized for the “Great East
Japan Earthquake Support Fund” for making donations to the
disaster affected areas by deducting ¥400 from employee’s
monthly salaries. In fiscal 2014, 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.
• Volunteer Activities for the Areas affected by the Great
East Japan Earthquake
Since May 2011, SMBC has
been regularly conducting
volunteer activities par-
ticipated by executives and
employees to support disas-
ter affected areas mainly
in Ishinomaki, Watari-cho,
and Higashi-Matsushima
in Miyagi Prefecture. Over 700 in total of employees and their
family members participated in the activities. SMBC Friend
Securities has been conducting the “recovery support volunteer
program” since July 2013. It continues to conduct activities
while further cultivating exchanges with the people living in the
disaster-affected area of Ishinomaki.
• Support for the Affected Areas – Donation of Musical
Instruments
Sumitomo Mitsui Card donated 15 musical instruments, which
were used for internal club activities, to the jazz orchestra of
“Swing Dolphins” organized with of elementary and junior high
school students who have been performing in Kesennuma of
Miyagi Prefecture.
• Volunteer for Interaction with Disaster-Affected People
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.
•Support for the Affected Areas – Donation of Books
Sumitomo Mitsui Card donated 1,342 books to Shanti International
Volunteer Group, which operates its mobile libraries in three prefec-
tures, Iwate, Miyagi, and Fukushima, which were affected by the
earthquake.
• In-House Sales Events for Products made in Fukushima
Cedyna held in-house sales event for products made in
Fukushima Prefecture for the purpose of supporting producers
and business operators in Fukushima which was affected by
the Great East Japan Earthquake.
For two days, approximately 800 employees supported
the recovery of the affected areas by purchasing locally made
confectionery, sake, and other items.
59
SMFG 2015
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, Sumitomo Mitsui Finance and Leasing (“SMFL”), SMBC
Nikko Securities, SMBC Friend Securities, Cedyna, and SMBC
Consumer Finance collect plastic bottle caps. SMBC Nikko
Securities, SMBC Friend Securities, Sumitomo Mitsui Card,
Cedyna, JRI and SMBC Consumer Finance collect used
postage stamps from employees, donating them to volunteer
organizations. SMBC and SMBC Friend Securities also donate
products given by the companies to their shareholders.
• Group Blood Donation Program
SMBC, SMFL, Sumitomo Mitsui Card, SMBC Consumer
Finance, SMBC Nikko Securities and Cedyna encourage
employees to donate their blood at the workplace. The total
of 1,634 employees from seven companies participated in the
program in fiscal 2014.
• Installation of Charitable Vending Machines. Sale of
Products made by Social Welfare Organizations
The offices of SMBC, SMFL, SMBC Nikko Securities, SMBC
Friend Securities, and Sumitomo Mitsui Card are installed
with vending machines which make contributions to welfare
organizations every time a drink is purchased from them. 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.
• 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 2014, we assisted in setting up accounts for accepting
donations for damages caused by the Yunnan earthquake in
China and damages caused by typhoons, and heavy rain in
Japan and overseas, and the Ebola epidemic. We are continu-
ing to accept donations for the Great East Japan Earthquake.
Furthermore, as it has been 20 years since the Hanshin-Awaji
Earthquake, Minato Bank donated emergency supplies to
Hyogo Prefecture and Kobe City to be used for earthquakes
and other disasters (“emergency cooking benches,” etc.). As for
other supports, in October 2014, at the official game of “INAC
Kobe Leonessa” where Minato Bank was a named sponsor,
players and bank employees collected donations for Tanba City
which was damaged by the severe rain storm.
• SMFG Pro Bono Project
SMFG is also engaged in pro bono activities as the SMFG Pro
Bono Project for which volunteers offer their business and pro-
fessional expertise and skills for the public. In fiscal 2014, three
Pro Bono Teams made up of SMFG volunteer employees gave
60
advice to strengthen the business infrastructure of NPOs, such
as organization of necessary administrative procedures for han-
dling donations, and preparation of databases. They cooper-
ated with NPOs in Tokyo which engage in providing support for
“child-raising” and “fertility treatment,” and they also cooperated
with NPO in Osaka engaging in “support for child-raising.”
• Activities of YUI, SMBC’s Volunteer Organization
SMBC also provides support through the volunteer activities of
YUI, an in-house volunteer organization for SMBC employees.
YUI regularly performs volunteer activities in the community,
including social events at schools for the hearing impaired,
beach cleaning, and singing performances for senior citizens.
•Contributing to Local Communities
SMBC has been promoting and performing volunteer activities
in the communities located by its branches and other offices in
Japan. These activities include branch tours, clean-ups of the
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, as well as providing
financial and economic education at all domestic branches.
SMBC Consumer Finance operates the Customer Service Plaza
which serves as a place for local communication. It provides
education and information for local people and students with
respect to financial matters, and financial and economic educa-
tional activities.
•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.
•Eco-Gloves
Minato Bank recycled a part of former uniforms into “ecological
gloves” after renewing its uniforms in April 2014. In June 2014,
it donated some of such gloves to Hyogo Prefecture Gardening
and Public Parks Association and the Kobe City Environmental
Office to be used for local environmental preservation activities,
and remaining gloves were stored at bank branches to be used
for disaster recovery purposes.
• 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 it also matches the donation (equivalent
to the client’s donated amount). Sumitomo Mitsui Card col-
lected 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 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 dona-
tions from cardholders using “points” accumulated from their
purchases, and also accepts online donations. Kansai Urban
SMFG 2015 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
SMBC participates in the program which provides dona-
tions to the non-profit organization of the “TABLE FOR TWO
International” to fund school meals in developing countries, for
every low-calorie meal purchased for lunch at the company
cafeterias. All SMBC branches participate in this program. The
program is also offered at the offices of SMFL and Sumitomo
Mitsui Card.
• Social Contribution Activities of In-House Foundations
SMBC Foundation for International Cooperation provides
scholarship every year to 7–8 students coming from Asia to
attend graduate schools in Japan for the purpose of develop-
ing human resources which may contribute to economic
development of developing regions and international exchange
activities. Further, the foundation also subsidies research insti-
tutes and researchers that undertake projects contributing to
economic development of developing countries. SMBC Global
Foundation, based in the United States, has provided scholar-
ships 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 participation in school beautifi-
cation programs by volunteers from SMBC. The foundation also
provides matching gifts for SMBC employees.
Environmental Activities
• Participation in Environmental Preservation Initiatives
SMFG organized “SMFG Clean-Up Day,” on which approxi-
mately 1,100 employees and their family members volunteered
to clean up four locations of Tamagawa in Tokyo, the Yodogawa
in Osaka, Suma Beach in Hyogo and Fujimae-Higata near
Nagoya. In addition, Kansai Urban Banking Corporation partici-
pated in the clean-up activities along the shore of Lake Biwa in
Shiga Prefecture, and JRI held the “Osaka Marathon Clean-Up”
event concurrently with the Osaka Marathon. Since fall of
2010, SMBC Nikko Securities designated a “Green Week” as
the week for enhancement of environmental preservation and
social contribution. In fiscal 2014, the cumulative total of 5,265
employees and their family members participated in the clean-
up activities and the collection of plastic bottle caps. Similarly,
Cedyna SMFL, and SMBC Consumer Finance continuously
conduct 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 an environmental photography contest for com-
municating 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 2015 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 elemen-
tary school children at
the Lake Biwa in Shiga
Prefecture for educat-
ing children on the
environmental aware-
through such
ness
experience.
Measures for Addressing Decreasing Birth Rate
and Aging Population
• Implementation of Universal Design and Universal
Service at Branches
The following initiatives were undertaken by our Group to assist
clients at branches.
• Installation of ATMs for the visually-impaired*1
• Installation of writing boards, communication boards, “ear”
marks, and cane holders
• Installation of hearing aids
• Installation of Automated External Defibrillators (AEDs)*2
• Installation of writing tables made for sofas (seated writing
tables are installed at certain branches of Minato Bank)
• Establishment of priority seating for senior citizens and
mobility-impaired people (Minato Bank, Kansai Urban
Banking Corporation)
*1 Installed at all ATMs located inside and outside domestic branches.
*2 AEDs are also installed at SMBC Nikko Securities and SMBC Friend
Securities.
As for other initiatives, Minato Bank is installed with Color
Universal Design (CUD) reception number display devices and
Braille blocks.
• Business Development for Accommodating a 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 began to offer loans (loans affiliated with nursing
care facilities) especially made for real estate properties of pay
nursing homes or serviced elderly homes.
Further, the Group began implementing its initiatives in a
full-scale since fiscal 2014 in order to strengthen its support
for the elderly, by mainly developing specialized staffs to assist
people with cognitive impairment. As of March 31, 2015, there
are approximately 5,600 specialized staffs to assist people with
cognitive impairment and approximately 1,800 care service
assistants assigned mostly at its branches.
We plan to design the kind of branches for senior citizens
to be able to have safe and meaningful lives according to the
needs of the society.
61
SMFG 2015
Contributing to Educational, Cultural, and
Artistic 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 2015, the 10th year
for the program, 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 for free of charge.
•Support for Cultural and Artistic Ventures
SMBC and SMBC Nikko Securities support promotion of the
music culture by sponsoring classical music concerts.
SMBC Friend Securities supports cultural and artistic
activities by sponsoring special art exhibitions at the Yamatane
Museum of Art as well as sponsoring the Osaka and Nagoya
philharmonic orchestras.
Sumitomo Mitsui Card supports promotion of Kabuki and
other traditional performing arts and development of human
resources through donating stage curtains to the National
Theatre and the National Engei Hall and sponsoring children’s
Kabuki performances.
In August 2014, Minato Bank invited 30 families of children
and their parents to the Kobe City Museum for the workshop
especially made for elementary and junior high school students,
titled “Minato Bank 15th Year Anniversary Event – Let’s Make a
Glass Art.”
SMBC, Minato Bank, and Kansai Urban Banking Corporation
are supporting the development of emotional enrichment
through sponsoring performances of the “Heart Theater (orga-
nized by Shiki Theatre Company and the Butai Geijutsu Center
Foundation).” (“Heart Theater” is a project which delivers the
emotional enrichment to children who are invited from throughout
Japan for free of charge).
•Financial and Economic Education
The respective branches of SMBC accept, whenever pos-
sible, students of elementary school up to high school visiting
the branch, in addition to organizing a vocational workshop
for elementary school students called “Natsuyasumi Kodomo
Ginko Tankentai.” Furthermore, the bank supports diverse finan-
cial and economic educational activities, including publishing a
book for elementary school students titled “What Does a Bank
Do?,” co-sponsoring 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 1,685
elementary school students and their families participated in
fiscal 2014.
SMBC Consumer Finance organized an 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 at its “Customer Service Plaza”
offices. A total of 2,893 of such events was held and partici-
pated in by 156,615 people in fiscal 2014.
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.
In addition, SMBC, SMFL, SMBC Nikko Securities,
Sumitomo Mitsui Card, JRI, Minato Bank and Kansai Urban
Banking Corporation sent instructors to teach classes at
universities.
Contributions Made to Local Communities by Overseas Offices
Overseas offices of the Group support projects which assist with resolving poverty issue 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 the SMBC’s Volunteer Fund, in addition to 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) donated to the Shanghai Branch of the RED CROSS Society of China for damages caused by the earthquake in Yunnan Province of Shanghai.
• SMBC’s Hong Kong Branch gave donations to support an orchestra made up of young Asian musicians.
• SMBC’s Seoul Branch gave donations to the “National Japanese Drama Competition for Students” to provide opportunities for Korean students to learn Japanese and further
understand Japanese cultures.
• SMBC’s Hanoi Branch provided work experience opportunities to students of international schools.
• 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.
• Banco Sumitomo Mitsui Brasileiro contributed the sponsorship funds for the improvement of the interior facilities of the Museu Histórico da Imigração Japonesa no Brasil.
• 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.
• SMBCE provided opportunities for Japanese students to develop a better understanding of the bank’s roles in society, by holding a class for future career development (introduc-
tion of banking businesses) at the Japanese school in London.
• SMBC’s Taipei Branch donated funds through the Kaohsiung Japanese Association to support the victims of the Kaohsiung gas explosions.
• SMBC’s New Delhi Branch cooperated with CSR partners to support education programs in suburban areas.
62
SMFG 2015
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 which 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 strives to develop professional human resources
which can provide sophisticated services. In addition to its
training programs for younger employees, SMFL improves its
training programs according to the level of positions ranging
from general manager to upcoming leader of next generations;
and it supports the career advancement of women by conduct-
ing training seminars for the development of women leaders so
as to proactively promote women. SMBC Nikko Securities, as a
comprehensive securities and investment banking 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 development of highly-
specialized younger employees through internally certified
corporate skill courses, training seminars 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. For development
of human resources with integrity, sophisticated knowledge and
expertise, Sumitomo Mitsui Card proactively supports training
seminars according to the level of positions, career develop-
ment training seminars and for becoming licensed Chiefs of
Money Lending Operations. It is also enhancing its develop-
ment of professional human resources for credit card business
by conducting workshops for improving card business and
products knowledge. Cedyna strives to “take the initiative to
develop the highly motivated professional human resources who
produce results accordingly”; to strengthen business execution
capabilities and provide the type of education by level, depart-
ment 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 programs based on its per-
sonnel system for training human resources to have high market
values and responsibilities. Furthermore, we assist employees in
growing and advancing by promoting education which teaches
those subject matters required to be in full compliance with
the Money Lending Business Act and other legislation. SMBC
Consumer Finance has been supporting the development of
employees. JRI 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 the Systems
Development Unit and Research and Consulting Unit, respec-
tively. The Minato Bank develops the kind of training system
which can increase the value of every employee of all levels
ranging from the first year of employment to the management
level. It improves the training seminars especially designed for
development of younger employees, and it also conducts train-
ing seminars and seminars for promoting active participation
by women. Further, it internally recruits candidates for the pur-
pose of providing opportunities for highly-motivated and willing
employees to apply for the position they desire. Kansai Urban
Banking works on well-planned human resources develop-
ment by establishing “Kansai Urban Business School” to teach
basic education and enhance personal development especially
designed for staff in their first six years of employment with the
bank in order to pursue
Training Seminar at Kansai Urban Banking
Employees’ Training Seminar at SMBC
Nikko Securities
63
SMFG 2015
its management policy of “development of energetic group of
employees.” As part of initiatives for striving to become the
“bank which places importance on, co-exists and co-prospers
with local areas,” it promotes certification tests on information
related to respective local areas. We are further improving the
training system in the respective Group companies.
•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 enable them 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
•Diversity of Human Resources
The Group is committed to providing a 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 has established the “Diversity and Inclusion
Committee” headed by the bank President in order to enhance
initiatives for the entire bank. It is currently reviewing the initiatives
enabling women to actively participate in the workplace and their
work-style by inviting outside expert professionals to participate in
the committee. SMBC hopes 20% of its 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 enable talented individuals to be
quickly promoted to mid-management levels. In order to enhance
a sense of unity as “Team SMBC” and to achieve a proactive and
energetic bank, our employees’ performances are evaluated not
simply in terms of one fiscal year’s achievements but also on their
overall contributions to the company.
•Developing Employees for Global Operations
SMBC has newly estab-
lished the “Global Human
Resources Department”
in the Human Resources
Department and “Global
Diversity Training Group”
at the Training Institute,
64
“SMBC’s Global Bankers Program”
respectively, for improving the human resources management
framework from the bank’s overall perspective and for secur-
ing and developing excellent human resources in Japan and
overseas. In order to enhance development of global human
resources, SMFL and SMBC Nikko Securities improved the
overseas trainee system mainly for younger employees, in addi-
tion to sending employees to attend language schools.
•Employing Persons with Disabilities
SMBC has established a special company called SMBC Green
Service Co., Ltd. which provides employment opportunities for
the physically-challenged. In December 2008, the company
began the operations of its Kobe Branch, followed by its
Unagidani Office in Osaka, February 2009, and Chiba Office,
March 2013. They created jobs not only for the physically chal-
lenged but also for the mentally challenged. As of March 2015,
physically- and mentally-challenged employees accounted for
2.07% of our total number of employees, above the legally man-
dated 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 preparing
a guidebook which describes the system enabling employees to
take advantage of the system according to their life stage.
■ Preparation of “Work-Life Balance Guidebook”
SMBC, SMFL, SMBC Friend Securities, Sumitomo Mitsui
Card, JRI
■ Preparation of the “Guide to the Support System for
Balancing Both Work and Childcare”
The Minato Bank and Kansai Urban Banking Corporation
Group companies have already implemented programs for
parental leave, nursing care leave, 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.
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 vacation 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, and JRI
■ “Go Home Early with Family Day” event
SMBC, SMBC Nikko Securities, and Sumitomo Mitsui Card
SMFG 2015
■ Implementation of the week designated for employees to
leave the office on time (during summer and winter seasons)
SMBC, SMBC Nikko Securities, and Sumitomo Mitsui Card
■ Implementation of Summer Time Program
The Minato Bank
We also provide venues for working mothers and fathers to be
able to exchange and share information on childcare.
■ “Working Dads’ and Moms’ Meeting”
SMBC
■ “Mom & Dad Luncheon”
JRI
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
■ Providing the online access to information shared among
employees who have taken time off from work for childcare,
who have returned to work and the Human Resources
Department
Sumitomo Mitsui Card
■ Regular training seminars conducted for employees on leave
for childcare
SMBC, Sumitomo Mitsui Card, SMBC Consumer Finance,
Minato Bank, Kansai Urban Banking
■ Seminars for those planning to take maternity leave
SMBC, SMBC Nikko Securities, SMBC Consumer Finance,
Kansai Urban Banking
■ Establishment of an office for supporting childcare leave
Sumitomo Mitsui Finance and Leasing
Group companies have been certified with “Kurumin” which is
given to those companies which 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 being 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, The Minato Bank,
Kansai Urban Banking
SMBC Consumer Finance supports seminars for
return to work
Children’s Visitation Day
Enhancing Awareness for Human 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.” The Human Rights Committee is principally in charge
of implementing initiatives to raise awareness for human rights
for all employees. Specifically, we are holding training seminars
for persons in charge of human rights promotion of respective
departments by inviting outside professional experts as instruc-
tors and also holding group training seminars for general man-
agers, employees of newly appointed to management positions
and newly-hired employees.
Further, each department of SMBC conducts human rights
awareness seminars and gives employees a test on human
rights awareness, and during the human rights promotion week,
we invite employees to come up with human rights promotion
statement. Kansai Urban Banking implements initiatives to raise
awareness for human rights by conducting human rights aware-
ness seminars and inviting employees to come up with human
rights promotion statement on regional group basis. Our Group
participates in the “United Nations Global Compact” to indicate
its endorsement for 10 principles with respect to human rights,
labor, environment and anti-corruption.
◆ SMBC, awarded with the “Selected 100 Diversity
Management Corporations”; SMFG, selected for
“Nadeshiko Brands for fiscal 2014”
In March 2015, SMBC was awarded with the “Selected
100 Diversity Management Corporations” by the Ministry of
Economy, Trade and Industry. The “Selected 100 Diversity
Management Corporations” award is given to approxi-
mately 100 companies which successfully increased their
corporate value with diversity management consecutively
for three years since fiscal 2012. SMBC was evaluated
for promoting diversity as an important “management
infrastructure” and establishing the “Diversity and Inclusion
Committee” headed by the President.
Further, SMFG was selected jointly by the Ministry
of Economy, Trade and Industry and the Tokyo Stock
Exchange as the “Nadeshiko Brands for fiscal 2014.”
Those companies, which proactively utilize women, includ-
ing the improvement of work environment enabling women
to continue to work, are selected for each industry, out of
companies listed in the first section of the Tokyo Stock
Exchange. Our Group has been selected for the second
time following the fiscal year 2012.
65
SMFG 2015
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)**
*
2013
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.
2014
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.
2015
25,963
13,087
50.41%
12,876
49.59%
37 yrs 6 mos.
41 yrs 1 mos.
33 yrs 11 mos.
13 yrs 3 mos.
16 yrs 0 mos.
10 yrs 7 mos.
447
480
567
2.03%
2.10%
2.07%
◆ SMBC Nikko Securities
March 31
Number of employees*
2013
7,619
4,839
63.51%
2,780
36.49%
39 yrs 4 mos.
40 yrs 5 mos.
37 yrs 4 mos.
12 yrs 4 mos.
12 yrs 7 mos.
11 yrs 11 mos.
2014
2015
7,764
4,939
63.61%
2,825
36.39%
39 yrs 9 mos.
40 yrs 9 mos.
37 yrs 11 mos.
12 yrs 9 mos.
12 yrs 11 mos.
12 yrs 6 mos.
8,188
5,166
63.09%
3,022
36.91%
39 yrs 7 mos.
40 yrs 8 mos.
37 yrs 10 mos.
12 yrs 9 mos.
13 yrs 0 mos.
12 yrs 5 mos.
65
75
114
1.98%
2.00%
1.94%
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)**
*
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 1 of respective years
2015
April 1
Number of new hires
787
Number of newly employed female graduates***
256
Ratio of newly employed females to total new employees 37.1% 35.4% 32.5%
*** Including Sogoshoku staff and Sogoshoku (retail course) employees. Excluding
2013
661
245
2014
652
231
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.
** As of March 1 of respective years
2015
April 1
Number of new hires***
617
Number of newly employed female graduates
285
Ratio of newly employed females to total new employees 37.9% 43.4% 46.2%
*** Professional employees (Classes I–II), FA, and specialists
2014
516
224
2013
293
111
Business Career employees.
Fiscal
Number of employees taking parental leave
Number of career hires
2012
920
<55>
17
2013
1,127
2014
1,513
<30>
26
<85>
88
Fiscal
Number of employees taking parental leave
2012
262
2013
287
2014
289
<0>
<3>
<0>
◆ Sumitomo Mitsui Finance and Leasing
2014
March 31
Number of employees*
2013
◆ SMBC Friend Securities
March 31
Number of employees*
2013
1,620
1,017
62.78%
603
37.22%
38 yrs 11 mos.
41 yrs 5 mos.
34 yrs 9 mos.
14 yrs 0 mos.
16 yrs 3 mos.
10 yrs 2 mos.
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.
2015
1,618
1,034
63.91%
584
36.09%
40 yrs 5 mos.
42 yrs 5 mos.
36 yrs 10 mos.
15 yrs 2 mos.
17 yrs 0 mos.
11 yrs 11 mos.
2.05%
2.14%
2.22%
*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
Male
Female
Ratio of employees with
disabilities (% of total)**
*
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).
** As of March 1 of respective years
2015
April 1
Number of new hires
41
Number of newly employed female graduates
11
Ratio of newly employed females to total new employees 20.0% 25.0% 26.8%
2013
20
4
2014
24
6
Fiscal
Number of employees taking parental leave
2012
40
<0>
2013
51
<0>
2014
58
<0>
66
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
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.
2014
2015
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.
1,862
1,321
70.95%
541
29.05%
37 yrs 10 mos.
39 yrs 10 mos.
32 yrs 11 mos.
14 yrs 11 mos.
15 yrs 11 mos.
9 yrs 8 mos.
Male
Female
The number of full-time employees, including employees seconded to other
companies and organizations. The following list of employees is deducted from
the total number of employees: executive officers, employees on short-term
contracts, part-time employees, employees of temporary employment agencies,
and national staff at overseas branches.
2015
April 1
Number of new hires
180
Number of newly employed female graduates**
71
Ratio of newly employed females to total new employees 46.5% 38.8% 39.4%
** Both non-area specified and area specified staff
2014
245
95
2013
159
74
Fiscal
Number of employees taking parental leave
2012
25
<0>
2013
21
<0>
2014
28
<0>
SMFG 2015 ◆ 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)***
*
2013
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.
2014
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.
2015
2,402
1,190
49.54%
1,212
50.46%
39 yrs 1 mos.
41 yrs 9 mos.
36 yrs 5 mos.
13 yrs 4 mos.
14 yrs 0 mos.
12 yrs 7 mos.
24
26
26
2.24%
2.30%
2.24%
◆ SMBC Consumer Finance
2013
March 31
Number of employees*
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.
2014
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.
2015
2,582
1,445
55.96%
1,137
44.04%
38 yrs 5 mos.
40 yrs 3 mos.
36 yrs 5 mos.
11 yrs 7 mos.
14 yrs 6 mos.
7 yrs 11 mos.
—
39
49
2.12%
1.86%
2.09%
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)**
*
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.
** Total of senior staff and group managers (including credit officers)
*** Computed based on single month of March
2015
April 1
Number of new hires
72
Number of newly employed female graduates
39
Ratio of newly employed females to total new employees 52.7% 54.2% 54.2%
2013
55
29
2014
59
32
The number of full-time employees on a non-consolidated basis, 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, national staff at overseas branches, executive
officers, part-time employees, and employees of temporary employment agen-
cies.
** As of March 1 of respective years
2015
April 1
Number of new hires
49
Number of newly employed female graduates
30
Ratio of newly employed females to total new employees 50.0% 65.0% 61.2%
2014
40
26
2013
28
14
Fiscal
Number of employees taking parental leave
Number of career hires
2012
63
<5>
18
2013
65
<9>
16
2014
71
<13>
24
Fiscal
Number of employees taking parental leave***
Number of career hires
*** Including employees who retired during the fiscal year
2012
88
<1>
14
2013
68
<1>
5
2014
66
<1>
3
◆ Cedyna
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
Male
Female
2013
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.
2014
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.
2015
3,213
1,962
61.06%
1,251
38.94%
41 yrs 7 mos.
43 yrs 9 mos.
38 yrs 0 mos.
17 yrs 8 mos.
19 yrs 9 mos.
14 yrs 4 mos.
Number of women in
managerial positions
Ratio of employees with
disabilities (% of total)**
*
22
29
38
*
1.81%
1.81%
2.06%
Excluding employees seconded from other companies, employees on short-
term contracts and part-time employees.
** As of March 1 of respective years
2015
April 1
Number of new hires
87
Number of newly employed female graduates
54
Ratio of newly employed females to total new employees 15.0% 65.2% 62.1%
2014
69
45
2013
20
3
◆ Japan Research Institute
2013
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
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.
2014
2015
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.
2,288
1,722
75.26%
566
24.74%
40 yrs 6 mos.
41 yrs 2 mos.
38 yrs 7 mos.
11 yrs 5 mos.
11 yrs 10 mos.
10 yrs 4 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.
2015
April 1
Number of new hires
86
Number of newly employed female graduates**
23
Ratio of newly employed females to total new employees 31.3% 25.0% 26.7%
** Including only Sogoshoku employees. Ippanshoku employees are excluded.
2014
68
17
2013
48
15
Fiscal
Number of employees taking parental leave***
Number of career hires
*** Including employees on short-term childcare leave
2012
71
<0>
—
2013
100
<4>
27
2014
94
<1>
24
Fiscal
Number of employees taking parental leave
2012
50
<4>
2013
35
<7>
2014
49
<12>
67
SMFG 2015 ◆ THE MINATO BANK
March 31
Number of employees*
Male
Percentage of total
Female
Percentage of total
Average age
Male
Female
Average years of service
2013
2014
2015
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.
1,949
1,211
62.13%
738
37.87%
40 yrs 11 mos.
43 yrs 11 mos.
36 yrs 0 mos.
16 yrs 7 mos.
19 yrs 8 mos.
11 yrs 5 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.
2015
April 1
Number of new hires
111
Number of newly employed female graduates
64
Ratio of newly employed females to total new employees 45.1% 46.6% 57.7%
2014
88
41
2013
82
37
Fiscal
Number of employees taking parental leave**
** The number of those employees whose leave began during the fiscal year
2012
21
<1>
2013
31
<0>
2014
38
<0>
◆ Kansai Urban Banking
March 31
Number of employees*
2013
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)***
*
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.
2014
2015
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.
2,513
1,628
64.78%
885
35.22%
40 yrs 0 mos.
42 yrs 11 mos.
34 yrs 8 mos.
16 yrs 8 mos.
19 yrs 2 mos.
12 yrs 2 mos.
124
138
150
1.78%
1.68%
1.85%
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, and employees of temporary employment
agencies.
** As of March 31; however, it is applicable only to those employees with deputy
positions or any other positions higher than deputy position
*** As of March 1 of respective years
2015
April 1
Number of new hires
169
Number of newly employed female graduates
105
Ratio of newly employed females to total new employees 57.3% 59.3% 62.1%
2013
96
55
2014
118
70
Fiscal
Number of employees taking parental leave
2012
54
<1>
2013
91
<0>
2014
99
<1>
• The combined employment ratio for persons with disabilities for the above 10
companies was 2.05% as of March 2015.
68
SMFG 2015 Main Work-Life Balance Support System (Employee Support Program)
Leave for taking care of
sick children
Until March 31 in the 6th
grade (10 days per annum
per child; 20 days for two or
more children)
Restrictions on
overtime
Until March 31 in the
6th grade
18 months or maximum of
2 years in case of inability
to place in daycare center
Shorter working hours
Parental leave
SMBC
Employees can choose
shorter working hours for
each day or fewer days
worked per week, both
applicable until March 31 in
the 6th grade
Exemption from
late-night work
Until March 31 in the
6th grade
Other principal systems
• Short-term childcare leave
• Work relocations
• Childcare subsidies
• Leave for nursing care
• Shorter working hours allowed for
nursing care
• System for rehiring former employees
1 year or maximum of 18
months in case of inability
to place in daycare center
Sumitomo Mitsui
Finance and Leasing
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)
Employees can
reduce
daily working hours to a
minimum of 5 hours 30
minutes until March 31 in
the 6th grade
Employees may reduce daily
working hours in increments
of 30 minutes up to 2.5
hours until March 31 in the
6th grade
SMBC Friend
Securities
18 months or maximum of
2 years in case of inability
to place in daycare center
Until March 31 in the 3rd
grade (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 in the 6th
grade (5 days per annum
per child; 10 days for two or
more children)
Sumitomo Mitsui
Card
Until March 31 in 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 in
the 3rd grade
Until the entry into
elementary school
Until the entry into
elementary school
• Work relocations
• System for rehiring former employees
Until March 31 in the
6th grade
Until March 31 in the
6th grade
• Short-term childcare leave
• Discounted rates for contracted daycare
service
• Nursing care leave
• Special days off for nursing care
• Shorter working hours for nursing care
• Short-term leave for nursing care
• Staggered working hours (working in
shifts)
• Rehiring former employees
Until March 31 in the
3rd grade
Until March 31 in the
3rd grade
• Leave for nursing care
• Shorter working hours allowed for
Until March 31 in the
3rd grade
Until March 31 in the
3rd grade
Until 3 years of age
Until March 31 in the 3rd
grade (5 days per annum
per child; no upper limit)
Until March 31 in the 3rd
grade
(Employees can
choose to work 5, 6, or 7
hours a day).
Cedyna
Until the entry into
elementary school
Until the entry into
elementary school
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)
in
the
Until March 31
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
SMBC Consumer
Finance
Until the entry into
elementary school
Until the entry into
elementary school
18 months or maximum of
2 years in case of inability
to place in daycare center
Until March 31 in 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 in 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
Japan Research
Institute
Until 3 years of age
Until March 31 in the 6th
grade (5 days per annum
per child; 10 days for two or
more children)
THE MINATO BANK
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)
Kansai Urban
Banking
Employees may select either
of shorter working hours
for each day of the week
(employees may select to
work for either 6, 6.5 or 7
hours per day), or working
4 days per week; both cases
are applicable until March
31 in the 6th grade
Employees may select either
of shorter working hours
for each day of the week
(employees may select to
work for 6 or 7 hours per
day), or fewer working days
per week; both cases are
applicable until the entry into
elementary school
Until March 31 in the
6th grade
Until March 31 in the
6th grade
Until the entry into
elementary school
Until the entry into
elementary school
nursing care
• System for rehiring former employees
• Work relocations
• Childcare subsidies
• Nursing care leave, days off for nurs-
ing care
• Shorter working hours for nursing care
• Rehiring former employees
• Special leave (for spouse’s childbirth)
• 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
• Childcare leave (2 days)
• Company-visiting day (2 days a year)
• Rehiring of former employees who quit
for childcare or care-giving reasons
• Husband’s maternity leave (3 days)
• Childcare subsidies
• Nursing care leave
• Shorter working hours (for nursing
care, etc.)
• Time off and shorter working hours
• Days off for nursing care
• Special leave (for spouse’s childbirth)
• Paid leave for initial 15 days of childcare
• Maternity leave (for assisting spouse)
• Nursing care leave
• Shorter working hours for nursing care
• Childcare allowance
• Rehiring former employees
• Support for early return to work after
childcare leave
• Paid leave for initial 5 days of childcare
• Rehiring former employees
• Nursing care leave
• Shorter working hours for nursing care
• Provision of home helpers
• Counseling service on childcare
69
SMFG 2015 70
SMFG 2015 Financial Section and Corporate Data
Compensation
SMFG
Compensation (Consolidated)
SMBC
Compensation
Corporate Data
Sumitomo Mitsui Financial Group, Inc.
Board of Directors, Corporate Auditors,
and Executive Officers
SMFG Organization
Sumitomo Mitsui Banking Corporation
Board of Directors, Corporate Auditors,
and Executive Officers
SMBC Organization
Principal Subsidiaries and Affiliates
Principal Domestic Subsidiaries.
Principal Overseas Subsidiaries
Principal Affiliates
International Directory
253
256
259
259
260
262
264
265
266
267
Financial Data
SMFG
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
Consolidated Statements of
Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Independent Auditor’s Report
SMBC
Supplemental Information
SMFG
Income Analysis (Consolidated)
Assets and Liabilities (Consolidated)
Capital (Nonconsolidated)
SMBC
Income Analysis (Consolidated)
Assets and Liabilities (Consolidated)
Income Analysis (Nonconsolidated)
Deposits (Nonconsolidated)
Loans (Nonconsolidated)
Securities (Nonconsolidated)
Ratios (Nonconsolidated)
Capital (Nonconsolidated)
Others (Nonconsolidated)
Trust Assets and Liabilities (Nonconsolidated)
Capital Ratio Information
SMFG
Capital Ratio Information (Consolidated)
SMBC
Capital Ratio Information (Consolidated)
Capital Ratio Information (Nonconsolidated)
72
74
76
77
80
82
146
147
153
156
159
162
165
167
171
173
178
180
182
183
185
186
226
238
006_0800801372708.indd 71
2015/07/27 16:14:15
SMFG 2015
71
Consolidated Balance Sheets
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
March 31
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 ..............................................
Assets for rent ...................................................
Buildings ............................................................
Land ..................................................................
Lease assets .....................................................
Construction in progress ...................................
Other tangible fixed assets ...............................
Intangible fixed assets ............................................
Software ............................................................
Goodwill ............................................................
Lease assets .....................................................
Other 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
2015
*8
*8
*8
*8
*1, *2, *8, *15
*3, *4, *5, *6, *7,
*8, *9
*7
*8
*8
*8, *10, *11, *12
¥ 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
1,436,703
302,220
445,043
8,529
55,920
98,369
819,895
328,251
377,145
80
114,418
119,932
173,180
*8
*8
*8
*8
*1, *2, *8, *15
*3, *4, *5, *6, *7,
*8, *9
*7
*8
*8
*8, *10, *11, *12
¥ 39,748,979
1,326,965
746,431
6,477,063
4,286,592
7,483,681
7,087
29,633,667
73,068,240
1,907,667
1,909,143
6,156,091
2,770,853
1,790,787
313,381
469,167
8,368
76,413
112,735
819,560
359,216
351,966
307
108,070
376,255
127,841
Millions of
U.S. dollars
2015
$ 330,828
11,044
6,212
53,908
35,677
62,286
59
246,639
608,142
15,877
15,890
51,237
23,062
14,905
2,608
3,905
70
636
938
6,821
2,990
2,929
3
899
3,132
1,064
6,566,818
(747,536)
¥161,534,387
7,267,713
(671,248)
¥183,442,585
60,489
(5,587)
$1,526,780
72
010_0800801372708.indd 72
2015/08/03 11:37:33
SMFGSMFG 2015 (Continued)
March 31
Liabilities and net 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
excess .................................................................
Acceptances and guarantees ................................
Total liabilities .........................................................
Net assets :
Capital stock ..........................................................
Capital surplus .......................................................
Retained earnings ..................................................
Treasury stock ........................................................
Total stockholders’ equity ......................................
Net unrealized gains (losses) on other
securities .............................................................
Net deferred gains (losses) on hedges ...................
Land revaluation excess .........................................
Foreign currency translation adjustments ..............
Accumulated remeasurements of defined
benefit plans .........................................................
Total accumulated other comprehensive
income ..................................................................
Stock acquisition rights .........................................
Minority interests ....................................................
Total net assets ......................................................
Total liabilities and net assets .................................
Consolidated Balance Sheets
Millions of yen
2014
2015
Millions of
U.S. dollars
2015
*8
*8
*8
*8
*8
*8, *13
*14
*8
¥ 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
*8
*8
*8
*8
*8
*8, *13
*14
*8
¥101,047,918
13,825,898
5,873,123
991,860
$ 841,015
115,072
48,882
8,255
7,833,219
3,351,459
5,664,688
9,778,095
1,110,822
1,370,800
6,222,918
718,133
6,728,951
73,359
3,344
38,096
2,128
19,050
20,870
166,793
1,124
601,393
65,195
27,894
47,147
81,382
9,245
11,409
51,793
5,977
56,005
611
28
317
18
159
174
1,388
9
5,005
*10
*8
38,276
6,566,818
152,529,368
*10
*8
34,550
7,267,713
172,746,314
288
60,489
1,437,755
*10
2,337,895
758,349
3,480,085
(175,115)
6,041,215
949,508
(60,946)
35,749
27,239
(73,579)
877,971
1,791
1,724,041
9,005,019
¥161,534,387
2,337,895
757,329
4,098,425
(175,261)
7,018,389
1,791,049
(30,180)
39,014
156,309
47,667
*10
19,458
6,303
34,111
(1,459)
58,414
14,907
(251)
325
1,301
397
2,003,859
2,284
1,671,738
10,696,271
¥183,442,585
16,678
19
13,914
89,024
$1,526,780
010_0800801372708.indd 73
2015/08/03 11:37:34
SMFG 2015
73
SMFG
Consolidated Statements of Income
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Year ended March 31
Ordinary income ......................................................................................
Interest income ...................................................................................
Interest on loans and discounts ....................................................
Interest and dividends on securities .............................................
Interest on call loans and bills bought ..........................................
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 .....................................................................
Lease-related income ....................................................................
Installment-related income ............................................................
Other .............................................................................................
Other income ......................................................................................
Gains on reversal of reserve for possible loan losses ...................
Recoveries of written-off claims ....................................................
Other .............................................................................................
Ordinary expenses ..................................................................................
Interest expenses ...............................................................................
Interest on deposits ......................................................................
Interest on negotiable certificates of deposit ................................
Interest on call money and bills sold .............................................
Interest on payables under repurchase agreements .....................
Interest on payables under securities lending transactions ..........
Interest on commercial paper .......................................................
Interest on borrowed money .........................................................
Interest on short-term bonds ........................................................
Interest on bonds .........................................................................
Other interest expenses ................................................................
Fees and commissions payments ......................................................
Trading losses ....................................................................................
Other operating expenses ..................................................................
Lease-related expenses ................................................................
Installment-related expenses ........................................................
Other .............................................................................................
General and administrative expenses ................................................
Other expenses ..................................................................................
Ordinary profit .........................................................................................
*1
*2
*3
Millions of yen
2014
2015
Millions of
U.S. dollars
2015
¥4,641,880
1,805,015
1,249,216
343,905
18,351
7,749
7,293
38,162
60,545
79,790
2,472
1,112,429
211,881
1,203,500
149,916
648,130
405,453
306,579
136,212
9,657
160,709
3,209,548
320,846
105,111
39,035
3,503
4,106
3,494
6,606
34,804
1,240
91,182
31,761
127,840
—
988,380
68,747
608,349
311,283
1,569,945
202,536
1,432,332
*1
*2
*3
¥4,851,202
1,891,932
1,312,629
336,345
19,599
9,640
7,826
43,147
62,097
100,645
2,890
1,126,285
252,976
1,359,109
189,261
692,151
477,695
218,008
61,158
15,979
140,870
3,530,046
386,753
126,371
43,904
4,201
4,921
5,036
8,047
34,814
1,393
110,461
47,602
129,609
57,856
1,078,570
89,310
650,913
338,346
1,659,341
217,914
1,321,156
$40,376
15,746
10,925
2,799
163
80
65
359
517
838
24
9,374
2,106
11,312
1,575
5,761
3,976
1,814
509
133
1,172
29,380
3,219
1,052
365
35
41
42
67
290
12
919
396
1,079
482
8,977
743
5,418
2,816
13,811
1,814
10,996
74
010_0800801372708.indd 74
2015/08/03 11:37:34
SMFGSMFG 2015 Consolidated Statements of Income
(Continued)
Year ended March 31
Extraordinary gains ..................................................................................
Gains on disposal of fixed assets ......................................................
Gains on negative goodwill ................................................................
Other extraordinary gains ...................................................................
Extraordinary losses ................................................................................
Losses on disposal of fixed assets ....................................................
Losses on impairment of fixed assets ................................................
Provision for reserve for eventual future operating losses from
financial instruments transactions ....................................................
Income before income taxes and minority interests ...............................
Income taxes-current ..............................................................................
Income taxes-deferred ............................................................................
Income taxes ...........................................................................................
Income before minority interests .............................................................
Minority interests in net income ..............................................................
Net income ..............................................................................................
*4
*5
Millions of yen
2014
¥
5,228
2,632
1,031
1,564
14,866
11,227
3,348
289
1,422,694
290,186
168,618
458,805
963,889
128,532
¥ 835,357
*5
2015
¥
538
538
—
—
12,316
6,853
5,109
353
1,309,377
325,341
116,020
441,362
868,015
114,405
¥ 753,610
Millions of
U.S. dollars
2015
$
4
4
—
—
103
57
43
3
10,898
2,708
966
3,673
7,224
952
$ 6,272
010_0800801372708.indd 75
2015/08/03 11:37:34
SMFG 2015
75
SMFG Consolidated Statements of Comprehensive Income
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Year ended March 31
Millions of yen
2014
2015
*1
Income before minority interests .............................................................
Other comprehensive income ................................................................
Net unrealized gains (losses) on other securities ...............................
Net deferred gains (losses) on hedges ...............................................
Land revaluation excess .....................................................................
Foreign currency translation adjustments ..........................................
Remeasurements of defined benefit plans .........................................
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
*1
¥ 868,015
1,195,494
864,496
29,458
3,604
175,840
122,552
(458)
2,063,510
1,879,838
183,672
Millions of
U.S. dollars
2015
$ 7,224
9,950
7,195
245
30
1,464
1,020
(4)
17,174
15,646
1,529
76
010_0800801372708.indd 76
2015/08/03 11:37:34
SMFGSMFG 2015 Consolidated Statements of Changes in Net Assets
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
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...................
Capital
stock
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 .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
Millions of yen
Stockholders’ equity
Retained
earnings
¥2,811,474
Capital
surplus
¥758,630
Treasury
stock
Total
¥(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
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
—
Balance at the end of the fiscal year ............................... ¥2,337,895
(281)
¥758,349
668,779
¥3,480,085
52,258
720,755
¥(175,115) ¥6,401,215
Millions of yen
Accumulated other comprehensive income
Net unrealized
gains (losses)
on other
securities
¥755,753
Net deferred
gains (losses)
on hedges
¥(32,863)
Land
revaluation
excess
¥39,129
Foreign
currency
translation
adjustments
¥ (97,448)
Accumulated
remeasurements
of defined benefit
plans
¥
—
Total
¥664,570
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 .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
Balance at the end of the fiscal year ...............................
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
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 .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
Millions of yen
Stock
acquisition
rights
¥1,260
Minority
interests
¥2,096,760
Total
net assets
¥8,443,218
802
634
(169,973)
835,357
(500)
52,477
6
4
(5)
(7)
3,398
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
Balance at the end of the fiscal year ...............................
531
531
¥1,791
(373,521)
(373,521)
¥1,724,041
(159,589)
561,166
¥9,005,019
010_0800801372708.indd 77
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SMFG 2015
77
SMFG Consolidated Statements of Changes in Net Assets
Year ended March 31, 2015
Balance at the beginning of the fiscal year ..................... ¥2,337,895
Capital
stock
Cumulative effects of changes in accounting policies ...
Restated balance ............................................................
Changes in the fiscal year
2,337,895
Cash dividends ...........................................................
Net income .................................................................
Purchase of treasury stock.........................................
Disposal of treasury stock ..........................................
Changes in shareholders’ interest due to transaction
with minority interests ..............................................
Increase due to increase in subsidiaries ....................
Increase due to decrease in subsidiaries ...................
Decrease due to increase in subsidiaries ...................
Decrease due to decrease in subsidiaries .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
Millions of yen
Stockholders’ equity
Retained
earnings
¥3,480,085
35,459
3,515,544
Capital
surplus
¥758,349
758,349
2
(1,021)
(170,908)
753,610
38
5
(165)
(20)
321
Treasury
stock
Total
¥(175,115) ¥6,401,215
35,459
6,436,674
(175,115)
(161)
15
(170,908)
753,610
(161)
17
(1,021)
38
5
(165)
(20)
321
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
—
Balance at the end of the fiscal year ............................... ¥2,337,895
(1,019)
¥757,329
582,880
¥4,098,425
(146)
581,715
¥(175,261) ¥7,018,389
Year ended March 31, 2015
Balance at the beginning of the fiscal year ..................... ¥ 949,508
Net unrealized
gains (losses)
on other
securities
Millions of yen
Accumulated other comprehensive income
Net deferred
gains (losses)
on hedges
¥(60,946)
Land
revaluation
excess
¥35,749
Foreign
currency
translation
adjustments
¥ 27,239
Accumulated
remeasurements
of defined
benefit plans
Total
¥ (73,579) ¥ 877,971
949,508
(60,946)
35,749
27,239
(73,579)
877,971
Cumulative effects of changes in accounting policies ...
Restated balance ............................................................
Changes in the fiscal year
Cash dividends ...........................................................
Net income .................................................................
Purchase of treasury stock.........................................
Disposal of treasury stock ..........................................
Changes in shareholders’ interest due to transaction
with minority interests ..............................................
Increase due to increase in subsidiaries ....................
Increase due to decrease in subsidiaries ...................
Decrease due to increase in subsidiaries ...................
Decrease due to decrease in subsidiaries .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
equity in the fiscal year .............................................
841,541
Net changes in the fiscal year .........................................
841,541
Balance at the end of the fiscal year ............................... ¥1,791,049
30,766
30,766
¥(30,180)
3,265
3,265
¥39,014
129,070
129,070
¥156,309
121,246
121,246
¥ 47,667
1,125,888
1,125,888
¥2,003,859
Year ended March 31, 2015
Balance at the beginning of the fiscal year .....................
Cumulative effects of changes in accounting policies ...
Restated balance ............................................................
Changes in the fiscal year
Cash dividends ...........................................................
Net income .................................................................
Purchase of treasury stock.........................................
Disposal of treasury stock ..........................................
Changes in shareholders’ interest due to transaction
with minority interests ..............................................
Increase due to increase in subsidiaries ....................
Increase due to decrease in subsidiaries ...................
Decrease due to increase in subsidiaries ...................
Decrease due to decrease in subsidiaries .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
Millions of yen
Stock
acquisition
rights
¥1,791
1,791
Minority
interests
Total
net assets
¥1,724,041 ¥ 9,005,019
35,027
9,040,047
(431)
1,723,610
(170,908)
753,610
(161)
17
(1,021)
38
5
(165)
(20)
321
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
Balance at the end of the fiscal year ...............................
492
492
¥2,284
(51,872)
(51,872)
1,074,509
1,656,224
¥1,671,738 ¥10,696,271
78
010_0800801372708.indd 78
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SMFGSMFG 2015 Consolidated Statements of Changes in Net Assets
Millions of U.S. dollars
Stockholders’ equity
Retained
earnings
Capital
surplus
$6,312
Capital
stock
$19,458
19,458
6,312
0
(8)
Treasury
stock
$(1,457)
(1,457)
(1)
0
Total
$53,277
295
53,572
(1,422)
6,272
(1)
0
(8)
0
0
(1)
(0)
3
$28,965
295
29,260
(1,422)
6,272
0
0
(1)
(0)
3
—
$19,458
(8)
$6,303
4,851
$34,111
(1)
$(1,459)
4,842
$58,414
Millions of U.S. dollars
Accumulated other comprehensive income
Net unrealized
gains (losses)
on other
securities
$ 7,903
Net deferred
gains (losses)
on hedges
Land
revaluation
excess
$(507)
$298
Foreign
currency
translation
adjustments
$ 227
Accumulated
remeasurements
of defined
benefit plans
$ (612)
Total
$ 7,307
7,903
(507)
298
227
(612)
7,307
Year ended March 31, 2015
Balance at the beginning of the fiscal year .....................
Cumulative effects of changes in accounting policies ...
Restated balance ............................................................
Changes in the fiscal year
Cash dividends ...........................................................
Net income .................................................................
Purchase of treasury stock.........................................
Disposal of treasury stock ..........................................
Changes in shareholders’ interest due to transaction
with minority interests ..............................................
Increase due to increase in subsidiaries ....................
Increase due to decrease in subsidiaries ...................
Decrease due to increase in subsidiaries ...................
Decrease due to decrease in subsidiaries .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
Balance at the end of the fiscal year ...............................
Year ended March 31, 2015
Balance at the beginning of the fiscal year .....................
Cumulative effects of changes in accounting policies ...
Restated balance ............................................................
Changes in the fiscal year
Cash dividends ...........................................................
Net income .................................................................
Purchase of treasury stock.........................................
Disposal of treasury stock ..........................................
Changes in shareholders’ interest due to transaction
with minority interests ..............................................
Increase due to increase in subsidiaries ....................
Increase due to decrease in subsidiaries ...................
Decrease due to increase in subsidiaries ...................
Decrease due to decrease in subsidiaries .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
Balance at the end of the fiscal year ...............................
7,004
7,004
$14,907
256
256
$(251)
27
27
$325
1,074
1,074
$1,301
1,009
1,009
$ 397
9,371
9,371
$16,678
Year ended March 31, 2015
Balance at the beginning of the fiscal year .....................
Cumulative effects of changes in accounting policies ...
Restated balance ............................................................
Changes in the fiscal year
Cash dividends ...........................................................
Net income .................................................................
Purchase of treasury stock.........................................
Disposal of treasury stock ..........................................
Changes in shareholders’ interest due to transaction
with minority interests ..............................................
Increase due to increase in subsidiaries ....................
Increase due to decrease in subsidiaries ...................
Decrease due to increase in subsidiaries ...................
Decrease due to decrease in subsidiaries .................
Reversal of land revaluation excess ...........................
Net changes in items other than stockholders’
Millions of U.S. dollars
Stock
acquisition
rights
$15
15
Minority
interests
Total
net assets
$14,349
(4)
14,345
$74,948
292
75,240
(1,422)
6,272
(1)
0
(8)
0
0
(1)
(0)
3
equity in the fiscal year .............................................
Net changes in the fiscal year .........................................
Balance at the end of the fiscal year ...............................
4
4
$19
(432)
(432)
$13,914
8,943
13,785
$89,024
010_0800801372708.indd 79
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SMFG 2015
79
SMFG Consolidated Statements of Cash Flows
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
Year ended March 31
Cash flows from operating activities:
Income before income taxes and minority interests ..........................
Depreciation .......................................................................................
Losses on impairment of fixed assets ................................................
Amortization of goodwill .....................................................................
Gains on negative goodwill ................................................................
Gains on step acquisitions .................................................................
Equity in (gains) losses of affiliates .....................................................
Net change in reserve for possible loan losses ..................................
Net change in reserve for employee bonuses ....................................
Net change in reserve for executive bonuses ....................................
Net change in 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) losses on securities ..........................................................
Net (gains) losses from money held in trust .......................................
Net exchange (gains) losses ..............................................................
Net (gains) 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 (used in) operating activities ................................
Millions of yen
2014
2015
Millions of
U.S. dollars
2015
¥ 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
¥ 1,309,377
222,195
5,109
26,521
—
—
10,600
(81,146)
2,722
(1,576)
(47,765)
130
(1,305)
6,012
(23,388)
(1,891,932)
386,753
(115,802)
(0)
(717,621)
6,315
(423,811)
797,462
(4,500,362)
6,639,769
71,330
2,656,388
117,475
(857,503)
(2,696,803)
922,181
924,066
2,502,245
(105,639)
624,705
(59,744)
225,600
1,038,047
18,803
1,903,720
(375,300)
87,971
8,605,805
(365,578)
8,240,226
$ 10,898
1,849
43
221
—
—
88
(675)
23
(13)
(398)
1
(11)
50
(195)
(15,746)
3,219
(964)
(0)
(5,973)
53
(3,527)
6,637
(37,456)
55,262
594
22,109
978
(7,137)
(22,445)
7,675
7,691
20,826
(879)
5,199
(497)
1,878
8,640
156
15,845
(3,124)
732
71,626
(3,043)
68,583
80
010_0800801372708.indd 80
2015/08/03 11:37:34
SMFGSMFG 2015
(Continued)
Year ended March 31
Cash flows from investing activities:
Purchases of securities ......................................................................
Proceeds from sale of securities ........................................................
Proceeds from redemption 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 (used in) investing activities .................................
Cash flows from financing activities:
Proceeds from issuance of subordinated borrowings .......................
Repayment of subordinated borrowings ............................................
Proceeds from issuance of subordinated bonds and bonds with
stock acquisition rights ....................................................................
Repayment of subordinated bonds and bonds with stock
acquisition rights ..............................................................................
Dividends paid....................................................................................
Proceeds from contributions paid by minority stockholders .............
Repayments 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 ........................
Purchase of shares of subsidiaries not resulting in change in scope
of consolidation ................................................................................
Proceeds from sale of shares of subsidiaries not resulting in change
in scope of consolidation .................................................................
Net cash provided by (used in) financing activities .................................
Effect of exchange rate changes on cash and cash equivalents ............
Net change in cash and cash equivalents ...............................................
Cash and cash equivalents at the beginning of the fiscal year ...............
Decrease in cash and cash equivalents resulting from exclusion of
Consolidated Statements of Cash Flows
Millions of yen
2014
2015
¥(19,929,619)
26,799,071
8,130,520
(1,010)
367
(465,147)
160,832
(127,664)
5
(825)
¥(36,624,383)
27,845,192
7,854,257
(0)
3,523
(578,968)
188,309
(145,090)
28
—
Millions of
U.S. dollars
2015
$(304,822)
231,754
65,370
(0)
29
(4,819)
1,567
(1,208)
0
—
(46,678)
(58)
(0)
672
14,520,523
—
(1,457,188)
—
(12,128)
—
(32,000)
2,111
(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
40,011
(5,000)
326,350
(288,158)
(170,917)
—
(124,500)
(79,752)
(161)
17
—
—
(1,951)
1,473
(302,589)
177,706
6,658,153
26,993,164
333
(42)
2,716
(2,398)
(1,423)
—
(1,036)
(664)
(1)
0
—
—
(16)
12
(2,518)
1,479
55,415
224,662
subsidiaries from consolidation .............................................................
Cash and cash equivalents at the end of the fiscal year .........................
*1
—
¥ 26,993,164
(52,637)
¥ 33,598,680
*1
(438)
$ 279,639
010_0800801372708.indd 81
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SMFG 2015
81
SMFG
Notes to Consolidated Financial Statements
Sumitomo Mitsui Financial Group, Inc. and Subsidiaries
(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 outstanding 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 generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as to application and disclosure requirements from International
Financial Reporting Standards (“IFRS”).
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 principles and standards as required under U.S. GAAP or IFRS, in which case
a certain limited number of items are adjusted based on their materiality.
These consolidated financial statements are translated from the consolidated financial statements contained in the annual securities report
filed under the Financial Instrument and Exchange Act of Japan (“FIEA based financial statements”) except for the addition of the non-
consolidated financial statements and US dollar figures.
Amounts less than 1 million yen have been rounded down. 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, 2015 which was ¥120.15 to US$1. These translations should not be construed as representations that the
Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at that rate.
The consolidated financial statements released in previous fiscal years were restructured from the FIEA based financial statements by
making several adjustments and reclassifications that are no longer made in these consolidated financial statements.
82
010_0800801372708.indd 82
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SMFGSMFG 2015 As of and for the years ended March 31, 2014 and 2015
(Notes to significant accounting policies for preparing consolidated financial statements)
1. Scope of consolidation
(1) Consolidated subsidiaries
The number of consolidated subsidiaries at March 31, 2015 is 317.
Principal companies:
Sumitomo Mitsui Banking Corporation (“SMBC”)
Sumitomo Mitsui Finance and Leasing Company, Limited (“SMFL”)
SMBC Nikko Securities Inc. (“SMBC Nikko”)
SMBC Friend Securities Co., Ltd. (“SMBC Friend”)
Sumitomo Mitsui Card Company, Limited (“SMCC”)
Cedyna Financial Corporation (“Cedyna”)
SMBC Consumer Finance Co., Ltd. (“SMBCCF”)
The Japan Research Institute, Limited
THE MINATO BANK, LTD. (“MINATO”)
Kansai Urban Banking Corporation (“KUBC”)
Sumitomo Mitsui Banking Corporation Europe Limited
Sumitomo Mitsui Banking Corporation (China) Limited
SMBC Guarantee Co., Ltd.
SMBC Capital Markets, Inc.
36 companies were newly included in the scope of consolidation as a result of the establishment and for other reasons.
The Japan Net Bank, Limited was excluded from the scope of consolidation because it became an equity method affiliate due to a
decrease in the ratio of voting rights. Other 42 companies were also excluded from the scope of consolidation due to liquidation and for
other reasons.
(2) Unconsolidated subsidiaries
Principal company:
SBCS Co., Ltd.
195 unconsolidated subsidiaries are operators of silent partnerships for lease transactions 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 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 judgment of SMFG’s
financial position and results of operations when excluded from the scope of consolidation.
2. Application of the equity method
(1) Unconsolidated subsidiaries accounted for by the equity method
The number of unconsolidated subsidiaries accounted for by the equity method at March 31, 2015 is 5.
Principal company:
SBCS Co., Ltd.
(2) Affiliates accounted for by the equity method 45 companies
Principal companies:
PT Bank Tabungan Pensiunan Nasional Tbk
Sumitomo Mitsui Auto Service Company, Limited
Daiwa SB Investments Ltd.
The Japan Net Bank, Limited newly became an equity method affiliate due to a decrease in the ratio of voting rights. 3 companies
including The Bank of East Asia, Limited also became equity method affiliates due to the acquisition of stocks and for other reasons.
010_0800801372708.indd 83
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SMFG 2015
83
SMFGNotes to Consolidated Financial Statements
(3) Unconsolidated subsidiaries that are not accounted for by the equity method
195 subsidiaries are operators of silent partnerships for lease transactions 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.
(4) Affiliates that are not accounted for by the equity method
Principal company:
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.
Daiwa SB Investments (USA) Ltd.
3. The balance sheet dates of consolidated subsidiaries
(1) The balance sheet dates of the consolidated subsidiaries at March 31, 2015 are as follows:
1
1
6
3
2
136
16
3
149
April 30 .................................
May 31...................................
June 30 ..................................
October 31 .............................
November 30 .........................
December 31 ..........................
January 31 .............................
February 28 ............................
March 31 ...............................
(2) The subsidiaries with balance sheets dated April 30, May 31, June 30 and November 30 are consolidated using the financial statements
as of March 31. The subsidiaries with balance sheets dated October 31 are consolidated using the financial statements as of January 31.
Certain subsidiaries with balance sheets dated December 31 and January 31 are consolidated using the financial statements as of March
31. Other subsidiaries are consolidated using the financial statements as of their respective balance sheet dates.
Appropriate adjustments were made to material transactions during the periods between their respective balance sheet dates and the
consolidated closing date.
4. Accounting policies
(1) Standards for recognition and measurement of 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” and “Trading losses.”
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.
(2) Standards for recognition and measurement of securities
1) 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 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 which
are 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 applying fair value hedge accounting.
2) Securities included in money held in trust are carried in the same method as in (1) and (2) 1) above.
(3) Standards for recognition and measurement of derivative transactions
Derivative transactions, excluding those classified as trading derivatives, are carried at fair value.
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SMFGSMFG 2015Notes to Consolidated Financial Statements (4) Depreciation
1) 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:
Others:
Other consolidated subsidiaries depreciate their tangible fixed assets primarily using the straight-line method over the estimated
7 to 50 years
2 to 20 years
2)
useful lives of the respective assets.
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).
3) Assets for rent
Assets for rent are depreciated using the straight-line method, assuming that lease terms are, in principle, their depreciation period
and the salvage is the estimated disposal value when the lease period expires.
4) 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.
(5) Reserve for possible loan losses
The reserve for possible loan losses of major consolidated subsidiaries is provided as detailed below in accordance with the internal
standards for write-offs and provisions.
For claims on borrowers that have entered into bankruptcy, special liquidation proceedings or similar legal proceedings (“bankrupt
borrowers”) or borrowers that are not legally or formally insolvent but are regarded as substantially in the same situation (“effectively
bankrupt borrowers”), a reserve is provided based on the amount of claims, after the write-off stated below, net of the expected amount
of recoveries from collateral and guarantees. For claims on borrowers that are not currently bankrupt but are perceived to have a high
risk of falling into bankruptcy (“potentially bankrupt borrowers”), a reserve is provided in the amount deemed necessary based on an
overall solvency assessment of the claims, net of the expected amount of recoveries from collateral and guarantees.
Discounted Cash Flows (“DCF”) method is used for claims on borrowers whose cash flows from collection of principals and interest
can be rationally estimated and SMBC applies it to claims on large potentially bankrupt borrowers and claims on large borrowers
requiring close monitoring that have been classified as “Past due loans (3 months or more)” or “Restructured loans,” whose total loans
from SMBC exceed a 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 historical 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 borrowers and effectively bankrupt borrowers, the amount exceeding the
estimated value of collateral and guarantees is deemed to be uncollectible and written off against the total outstanding amount of the
claims. The amount of write-off as of ended March 31, 2014 and 2015 were ¥511,043 million and ¥363,585 million.
(6) 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 fiscal year.
(7) 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 fiscal year.
(8) 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.
(9) 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.
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SMFG 2015
85
SMFGNotes to Consolidated Financial Statements (10) Reserve for reimbursement of deposits
The reserve for reimbursement of deposits which were derecognized from liabilities under certain conditions is provided for the possible
losses on the future claims of withdrawal based on historical reimbursements.
(11) 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.
(12) Reserve under the special laws
The reserve under the special laws is a reserve for contingent liabilities and provided for compensation for losses from securities related
transactions or derivative transactions, pursuant to Article 46-5 of the Financial Instruments and Exchange Act.
(13) Employee retirement benefits
In calculating the projected benefit obligation, the benefit formula basis is used to attribute the expected benefit attributable to the
respective fiscal year.
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 employees’ average
remaining service period, commencing from the next fiscal year of incurrence.
(14) 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 rate 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 rate prevailing at their respective balance sheet dates.
(15) Lease transactions
1) Recognition of income on finance leases
Interest income is allocated to each period.
2) Recognition of income on operating leases
Primarily, lease-related income is recognized on a straight-line basis over the full term of the lease, based on the contractual amount
of lease fees per month.
3) Recognition of income and expenses on installment sales
Primarily, installment-sales-related income and expenses are recognized on a due-date basis over the full period of the installment
sales.
(16) Hedge accounting
1) 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” (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 classifying 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.
2) 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 transactions 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 sufficient on-balance (actual) or off-balance (forward)
liability exposure exists to cover the cost of the hedged securities denominated in the same foreign currencies.
3) 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 accordingly evaluates the effectiveness of such individual hedges.
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SMFGSMFG 2015Notes to Consolidated Financial Statements 4) Transactions between consolidated subsidiaries
As for derivative transactions between consolidated subsidiaries or internal transactions between trading accounts and other accounts
(or among internal sections), SMBC manages the interest rate swaps and currency swaps that are designated as hedging instruments
in accordance with the non-arbitrary and 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.
(17) 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 charged or credited when incurred.
(18) Scope of “Cash and cash equivalents” on consolidated statements of cash flows
For the purposes of presenting the consolidated statements of cash flows, “Cash and cash equivalents” are cash on hand, non-interest
earning deposits with banks and deposits with the Bank of Japan.
(19) Consumption taxes
National and local consumption taxes of SMFG and its consolidated domestic subsidiaries are accounted for using the tax-excluded
method.
(Changes in accounting policies due to application of new or revised accounting standards)
1. Accounting Standard for Retirement Benefits and related guidance
SMFG has adopted Paragraph 35 of “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 issued on May 17, 2012,
“Accounting Standard”) and Paragraph 67 of “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25 issued on
March 26, 2015, “Guidance”) from the beginning of the fiscal year ended March 31, 2015. Accordingly, SMFG has reviewed its calculation
methods for the projected benefit obligation and service cost, and changed the method for attributing the expected benefit to periods of service
from a straight-line basis to a benefit formula basis.
The Accounting Standard and Guidance are applied in accordance with the transitional treatment stipulated in Paragraph 37 of the
Accounting Standard. The effect, arising from the change in calculation method for the projected benefit obligation and service cost, is reflected
in retained earnings as of the beginning of the fiscal year ended March 31, 2015.
As a result, net defined benefit asset increased by ¥49,052 million, net defined benefit liability decreased by ¥3,646 million and retained
earnings increased by ¥35,459 million as of the beginning of the fiscal year ended March 31, 2015. The effect of these changes on profit and
loss for the fiscal year ended March 31, 2015 is considered to be immaterial.
The effect of this change on net assets per share is disclosed in “(Per Share Data).”
2. Revision of Accounting Standard for Business Combinations and related rules
“Accounting Standard for Business Combinations” (ASBJ Statement No. 21), “Accounting Standard for Consolidated Financial Statements”
(ASBJ Statement No. 22), “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7) and other related standards and
implementation guidance were revised on September 13, 2013, and became effective from fiscal years beginning on or after April 1, 2014.
SMFG has prospectively adopted these revised accounting standards and implementation guidance from the beginning of the fiscal year ended
March 31, 2015 (excluding the provisions defined in Paragraph 39 of Accounting Standard for Consolidated Financial Statements), in
accordance with the transitional treatment set forth in Paragraph 58-2 (4) of Accounting Standard for Business Combinations, Paragraph 44-5
(4) of Accounting Standard for Consolidated Financial Statements, and Paragraph 57-4 (4) of Accounting Standard for Business Divestitures.
In accordance with these revisions, SMFG’s accounting policies have been changed as follows:
- the difference arising from a change in SMFG’s ownership interest in a subsidiary over which SMFG continues to have control is
recognized in capital surplus, and acquisition costs are expensed in the period incurred, and
- for a business combination occurring on or after April 1, 2014, an adjustment to the provisional amount arising from the finalization of
the tentative accounting treatment relating to the purchase price allocation is retrospectively recognized in the consolidated financial
statements for the accounting period in which the combination occurs.
The effect of these changes on profit and loss for the fiscal year ended March 31, 2015 is considered to be immaterial.
(Additional information)
Effect of a change in the corporate income tax rule
In accordance with the “Act for Partial Amendment of the Income Tax Act, etc.” (Act No. 9, 2015) and the “Act to Amend the Local Taxation
Act, etc.” (Act No. 2, 2015) promulgated on March 31, 2015, the corporate income tax rate will be lowered from fiscal years beginning on or
after April 1, 2015. Additionally, beginning from fiscal years starting on or after April 1, 2015, the use of tax loss carryforwards will be limited
to the equivalent of 65% of taxable income before deducting tax loss carryforwards, and beginning from fiscal years starting on or after April 1,
2017, the use of tax loss carryforwards will be limited to the equivalent of 50% of taxable income before deducting tax loss carryforwards.
As a result of these changes, net income decreased by ¥30,248 million and total accumulated other comprehensive income increased by
¥77,813 million.
SMFG 2015
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SMFGNotes to Consolidated Financial Statements (Notes to consolidated balance sheets)
*1 Japanese stocks and investments in unconsolidated subsidiaries and affiliates
Japanese stocks and investments in unconsolidated subsidiaries and affiliates at March 31, 2014 and 2015 were as follows:
March 31
Japanese stocks .................................................................................................................
Investments ......................................................................................................................
2014
¥372,127
249
2015
¥583,382
336
Millions of yen
Japanese stocks of jointly controlled entities were as follows:
March 31
Japanese stocks of jointly controlled entities .....................................................................
2014
¥99,691
2015
¥100,102
Millions of yen
*2 Unsecured loaned securities for which borrowers have the right to sell or pledge
The amount of unsecured loaned securities for which borrowers have the right to sell or pledge at March 31, 2014 and 2015 were as follows:
March 31, 2014
Japanese government bonds in “Securities” ...............
Millions of yen March 31, 2015
Millions of yen
¥28,995
Japanese government bonds and other securities in
“Securities” ..........................................................
¥1,540
As for the unsecured borrowed securities, securities under resale agreements and securities borrowed with cash collateral with rights to sell or
pledge without restrictions, those securities pledged and those securities held without being disposed at March 31, 2014 and 2015 were as follows:
March 31
Securities borrowed with cash collateral ............................................................................
Unsecured borrowed securities, securities under resale agreements ....................................
2014
¥1,462,265
2,482,406
2015
¥3,181,553
3,087,292
Millions of yen
*3 Bankrupt loans and non-accrual loans
Bankrupt loans and non-accrual loans at March 31, 2014 and 2015 were as follows:
March 31
Bankrupt loans .................................................................................................................
Non-accrual loans .............................................................................................................
2014
¥ 39,601
877,325
2015
¥ 35,861
774,058
Millions of yen
“Bankrupt loans” are loans, after write-off, to legally bankrupt borrowers as defined in Article 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.
“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.
*4 Past due loans (3 months or more)
Past due loans (3 months or more) at March 31, 2014 and 2015 were as follows:
March 31
Past due loans (3 months or more) ....................................................................................
2014
¥14,679
2015
¥13,714
Millions of yen
“Past due loans (3 months or more)” are loans on which the principal or interest payment is past due for 3 months or more, excluding
“Bankrupt loans” and “Non-accrual loans.”
*5 Restructured loans
Restructured loans at March 31, 2014 and 2015 were as follows:
March 31
Restructured loans ............................................................................................................
2014
¥389,089
2015
¥278,622
Millions of yen
“Restructured loans” are loans on which terms and conditions have been amended in favor of the borrowers (e.g. reduction of the
original interest rate, deferral of interest payments, extension of principal repayments or debt forgiveness) in order to support the
borrowers’ recovery from financial difficulties, excluding “Bankrupt loans,” “Non-accrual loans” and “Past due loans (3 months or more).”
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SMFGSMFG 2015Notes to Consolidated Financial Statements
*6 Risk-monitored loans
The total amount of bankrupt loans, non-accrual loans, past due loans (3 months or more) and restructured loans at March 31 , 2014 and
2015 were as follows:
March 31
Risk-monitored loans .......................................................................................................
2014
¥1,320,695
2015
¥1,102,256
Millions of yen
The amounts of loans presented in Notes *3 to *6 above are the amounts before deduction of reserve for possible loan losses.
*7 Bills discounted
Bills discounted are included in “Loans and bills discounted” and “Foreign exchanges” accounts depending on the type of the bills. Bills
discounted are accounted for as financial transactions in accordance with the “Treatment for Accounting and Auditing of Application of
Accounting Standard for Financial Instruments in Banking Industry” (JICPA Industry Audit Committee Report No. 24). SMBC and its
banking subsidiaries have rights to sell or pledge bank acceptance bought, commercial bills discounted, documentary bills and foreign
exchanges bought without restrictions, etc. The total face value at March 31, 2014 and 2015 were as follows:
March 31
Bills discounted ................................................................................................................
2014
¥1,019,215
2015
¥950,790
Millions of yen
*8 Assets pledged as collateral
Assets pledged as collateral at March 31, 2014 and 2015 consisted of the following:
March 31, 2014
Assets pledged as collateral:
Millions of yen March 31, 2015
Millions of yen
Assets pledged as collateral:
Cash and due from banks ......................................... ¥ 98,101
347,681
Call loans and bills bought ..................................
Monetary claims bought ......................................
76,437
2,245,525
Trading assets ......................................................
7,431,341
Securities .............................................................
Loans and bills discounted ...................................
2,278,931
4,036
Lease receivables and investment assets ................
Tangible fixed assets ............................................
10,411
Other assets (installment account receivable,
etc.) ...................................................................
276
Cash and due from banks ......................................... ¥ 61,093
478,457
Call loans and bills bought ..................................
75,556
Monetary claims bought ......................................
Trading assets ......................................................
1,712,885
Securities ............................................................. 10,445,190
2,803,237
Loans and bills discounted ...................................
3,163
Lease receivables and investment assets ................
Tangible fixed assets ............................................
9,969
Other assets (installment account receivable,
etc.) ...................................................................
172
Liabilities corresponding to assets pledged as collateral:
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 .................................
29,933
745,000
1,664,002
5,317,793
350,379
3,561,623
35,014
187,730
Deposits ..............................................................
Call money and bills sold .....................................
Payables under repurchase agreements .................
Payables under securities lending transactions .....
Trading liabilities ................................................
Borrowed money .................................................
Other liabilities ...................................................
Acceptances and guarantees .................................
33,800
1,095,000
406,212
4,121,603
480,464
6,099,726
35,952
207,009
In addition to the assets presented above, the following assets were pledged as collateral for cash settlements, and substitution for
margins of futures transactions and certain other purposes at March 31, 2014 and 2015:
March 31, 2014
Cash and due from banks .......................................... ¥ 11,658
21,939
Trading assets ...........................................................
8,018,590
Securities ..................................................................
Millions of yen March 31, 2015
Millions of yen
Cash and due from banks .......................................... ¥ 13,580
2,271
Trading assets ...........................................................
6,067,851
Securities ..................................................................
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SMFG 2015
89
SMFGNotes to Consolidated Financial Statements
Other assets include collateral money deposited for financial instruments, surety deposits, margin of futures markets and other margins.
The amounts for such assets were as follows:
March 31, 2014
Collateral money deposited for financial instruments ¥410,317
Collateral money deposited for financial instruments .... ¥152,163
119,525
Surety deposits .........................................................
121,613
Surety deposits .........................................................
63,433
22,677 Margins of futures markets .......................................
Margins of futures markets .......................................
27,819
Other margins ..........................................................
1,362
Other margins ..........................................................
Millions of yen March 31, 2015
Millions of yen
*9 Commitment line contracts on overdrafts and loans
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 2015 were as follows:
March 31
The amounts of unused commitments ..............................................................................
The amounts of unused commitments whose original contract terms are within 1 year or
unconditionally cancelable at any time............................................................................
Millions of yen
2014
¥49,167,754
2015
¥53,473,427
38,010,372
40,386,315
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.
*10 Land revaluation excess
SMBC and another consolidated subsidiary revaluated their own land for business activities in accordance with the “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 excess,” and the net unrealized gains, net of deferred taxes, are reported as “Land revaluation excess” in “Net
assets.”
A certain affiliate also 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 Articles 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).
*11 Accumulated depreciation on tangible fixed assets
Accumulated depreciation on tangible fixed assets at March 31, 2014 and 2015 are as follows:
March 31
Accumulated depreciation ................................................................................................
2014
¥884,257
2015
¥944,545
Millions of yen
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SMFGSMFG 2015Notes to Consolidated Financial Statements *12 Deferred gain on tangible fixed assets deductible for tax purposes
Deferred gain on tangible fixed assets deductible for tax purposes at March 31, 2014 and 2015 were as follows:
March 31
Deferred gain on tangible fixed assets deductible for tax purposes .....................................
[The consolidated fiscal year concerned] .......................................................................
2014
¥62,791
[4,471]
2015
¥62,704
[145]
Millions of yen
*13 Subordinated borrowings
The balance of subordinated borrowings with the special clause specifying that the repayment order of the borrowing subordinates to other
borrowings included in “Borrowed money” at March 31, 2014 and 2015 were as follows:
March 31
Subordinated borrowings ..................................................................................................
2014
¥282,449
2015
¥317,461
Millions of yen
*14 Subordinated bonds
The balance of subordinated bonds included in “Bonds” at March 31, 2014 and 2015 were as follows:
March 31
Subordinated bonds ..........................................................................................................
2014
¥1,701,431
2015
¥1,777,502
Millions of yen
*15 Guaranteed amount to privately-placed bonds
The amounts guaranteed by SMBC and its banking subsidiaries to privately-placed bonds (stipulated by Article 2-3 of the Financial
Instruments and Exchange Act) in “Securities” at March 31, 2014 and 2015 were as follows:
March 31
Guaranteed amount to privately-placed bonds ..................................................................
2014
¥1,885,300
2015
¥2,030,463
Millions of yen
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SMFG 2015
91
SMFGNotes to Consolidated Financial Statements (Notes to consolidated statements of income)
*1 Other income
“Other” in “Other income” for the fiscal years ended March 31, 2014 and 2015 included the following:
Year ended March 31, 2014
Gains on sales of stocks .............................................
Equity in gains of affiliates .......................................
Millions of yen Year ended March 31, 2015
¥108,183
10,241
Gains on sales of stocks .............................................
Millions of yen
¥ 83,503
*2 General and administrative expenses
“General and administrative expenses” for the fiscal years ended March 31, 2014 and 2015 included the following:
Year ended March 31, 2014
Salaries and related expenses .....................................
Research and development costs ...............................
Millions of yen Year ended March 31, 2015
¥573,418
159
Salaries and related expenses .....................................
Research and development costs ...............................
Millions of yen
¥610,998
171
*3 Other expenses
“Other expenses” for the fiscal years ended March 31, 2014 and 2015 included the following:
Year ended March 31, 2014
Write-off of loans......................................................
Provision for reserve for losses on interest
repayment ..............................................................
Millions of yen Year ended March 31, 2015
¥84,933 Write-off of loans......................................................
Provision for reserve for losses on interest
repayment ..............................................................
50,200
Millions of yen
¥76,997
64,836
*4 Other extraordinary gains
“Other extraordinary gains” for the fiscal years ended March 31, 2014 represented gains on step acquisitions of ¥1,564 million
92
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SMFGSMFG 2015Notes to Consolidated Financial Statements *5 Losses on impairment of fixed assets
The differences between the recoverable amounts and the book value of the following asset is recognized as “Losses on impairment of fixed
assets,” and included in “Extraordinary losses” for the fiscal year ended March 31, 2014 and 2015.
Year ended March 31, 2014
Area
Purpose of use
Tokyo metropolitan area ...............................Corporate assets (3 items)
Type
Land and buildings, etc.
Idle assets (38 items)
Other (1 item)
Kinki area ....................................................Idle assets(37 items)
Other ...........................................................Corporate asset (1 item)
Land and buildings, etc.
Land and buildings, etc.
Idle assets (10 items)
Other (1 item)
Year ended March 31, 2015
Area
Purpose of use
Type
Tokyo metropolitan area ...............................Branches (3 items)
Land and buildings, etc.
Idle assets (36 items)
Other (1 item)
Kinki area ....................................................Branches (4 items)
Land and buildings, etc.
Other ...........................................................Corporate asset (1 item)
Land and buildings, etc.
Idle assets (11 items)
Corporate assets (2 items)
Idle assets (29 items)
Millions of yen
Impairment loss
¥ 146
1,836
23
965
37
232
107
Millions of yen
Impairment loss
¥ 77
3,019
0
137
12
1,802
0
59
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 smallest 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
“Extraordinary losses.” SMBC reduced the carrying amounts of idle assets, and other consolidated subsidiaries reduced the carrying
amounts of their branches and idle assets.
The recoverable amount is calculated using net realizable value which is basically determined by subtracting the expected disposal cost
from the appraisal value based on the Real Estate Appraisal Standard.
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SMFG 2015
93
SMFGNotes to Consolidated Financial Statements
(Notes to consolidated statements of comprehensive income)
*1 Reclassification adjustment and tax effect of other comprehensive income
Year ended March 31
Net unrealized gains (losses) on other securities:
Amount arising during the fiscal year ..........................................................................
Reclassification adjustments ........................................................................................
Before adjustments to tax effect ..............................................................................
Tax effect ................................................................................................................
Net unrealized gains (losses) on other securities ......................................................
Net deferred gains (losses) on hedges:
Amount arising during the fiscal year ..........................................................................
Reclassification adjustments ........................................................................................
Adjustment on the cost of the assets ............................................................................
Before adjustments to tax effect ..............................................................................
Tax effect ................................................................................................................
Net deferred gains (losses) on hedges ......................................................................
Land revaluation excess:
Amount arising during the fiscal year ..........................................................................
Reclassification adjustments ........................................................................................
Before adjustments to tax effect ..............................................................................
Tax effect ................................................................................................................
Land revaluation excess ...........................................................................................
Foreign currency translation adjustments:
Amount arising during the fiscal year ..........................................................................
Reclassification adjustments ........................................................................................
Before adjustments to tax effect ..............................................................................
Tax effect ................................................................................................................
Foreign currency translation adjustments ...............................................................
Remeasurements of defined benefit plans:
Amount arising during the fiscal year ..........................................................................
Reclassification adjustments ........................................................................................
Before adjustments to tax effect ..............................................................................
Tax effect ................................................................................................................
Remeasurements of defined benefit plans ................................................................
Share of other comprehensive income of affiliates:
Amount arising during the fiscal year ..........................................................................
Reclassification adjustments ........................................................................................
Before adjustments to tax effect ..............................................................................
Tax effect ................................................................................................................
Share of other comprehensive income of affiliates ....................................................
Total other comprehensive income .....................................................................
Millions of yen
2014
2015
¥ 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
¥1,403,111
(215,162)
1,187,948
(323,451)
864,496
26,574
23,028
0
49,603
(20,144)
29,458
—
—
—
3,604
3,604
178,283
(2,443)
175,840
—
175,840
163,011
22,633
185,645
(63,093)
122,552
952
(1,410)
(458)
—
(458)
¥1,195,494
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(Notes to consolidated statements of changes in net assets)
Fiscal year ended March 31, 2014
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
Notes
Number of shares
Common stock ....................................
Total ...............................................
1,414,055,625
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
105,441
13,503,148
13,503,148
46,781,669
46,781,669
1,2
Notes: 1. Increase of 105,441 shares in the number of treasury common stock was due to the purchases 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 sales 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.
2. Information on stock acquisition rights
Year ended March 31, 2014
SMFG
Consolidated subsidiaries ......
Total ................................
Details of stock
acquisition rights
Stock acquisition
rights as stock
options
—
3. Information on dividends
(1) Dividends paid in the fiscal year
Type of
shares
At the beginning
of the fiscal year
Increase Decrease
At the end of the
fiscal year
Number of shares
Millions of yen
At the end of the
fiscal year
Notes
—
—
—
—
—
—
¥1,634
157
¥1,791
Date of resolution
Ordinary general meeting of shareholders
held on June 27, 2013 ................................ Common stock
Meeting of the board of Directors held on
November 12, 2013 ................................... Common stock
Type of shares
Millions of yen, except per share amount
Cash
dividends
Cash
dividends
per share
Record date
Effective date
¥98,713
¥70 March 31, 2013
June 27, 2013
77,556
55
September 30, 2013 December 3, 2013
Note: Cash dividends per share of ¥70 resolved at the ordinary general meeting of shareholders held on June 27, 2013 includes of ¥10 of the commemorative dividend.
(2) Dividends to be paid in the next fiscal year
Date of resolution
Ordinary general meeting of shareholders
held on June 27, 2014 ................................ Common stock
Type of shares
Fiscal year ended March 31, 2015
1. Type and number of shares issued and treasury stock
Millions of yen, except per share amount
Cash
dividends
¥91,656
Source of
dividends
Retained
earnings
Cash
dividends
per share
Record date
Effective date
¥65 March 31, 2014
June 27, 2014
Year ended March 31, 2015
Shares issued
At the beginning
of the fiscal year
Increase
Decrease
At the end
of the fiscal year
Notes
Number of shares
Common stock ....................................
Total ...............................................
1,414,055,625
1,414,055,625
Treasury stock
Common stock ....................................
Total ...............................................
46,781,669
46,781,669
—
—
37,310
37,310
—
—
1,414,055,625
1,414,055,625
4,778
4,778
46,814,201
46,814,201
1,2
Notes: 1. Increase of 37,310 shares in the number of treasury common stock was due to purchases of fractional shares.
2. Decrease of 4,778 shares in the number of treasury common stock was due to sales of fractional shares and exercise of stock options.
SMFG 2015
95
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SMFGNotes to Consolidated Financial Statements
2. Information on stock acquisition rights
Year ended March 31, 2015
SMFG
Consolidated subsidiaries ......
Total ................................
Details of stock
acquisition rights
Stock acquisition
rights as stock
options
—
3. Information on dividends
(1) Dividends paid in the fiscal year
Type of
shares
At the beginning
of the fiscal year
Increase Decrease
At the end of the
fiscal year
Number of shares
Millions of yen
At the end of the
fiscal year
Notes
—
—
—
—
—
—
¥2,085
198
¥2,284
Date of resolution
Ordinary general meeting of shareholders
held on June 27, 2014 ................................ Common stock
Meeting of the board of Directors held on
November 13, 2014 ................................... Common stock
Type of shares
(2) Dividends to be paid in the next fiscal year
Millions of yen, except per share amount
Cash
dividends
Cash
dividends
per share
Record date
Effective date
¥91,656
¥65 March 31, 2014
June 27, 2014
84,604
60
September 30, 2014 December 3, 2014
Date of resolution
Ordinary general meeting of shareholders
held on June 26, 2015 ................................ Common stock
Type of shares
Millions of yen, except per share amount
Cash
dividends
¥112,804
Source of
dividends
Retained
earnings
Cash
dividends
per share
Record date
Effective date
¥80 March 31, 2015
June 26, 2015
(Notes to consolidated statements of cash flows)
*1 The relation between the amounts of accounts listed on the consolidated financial statements and “Cash and cash equivalents”
Year ended March 31, 2015
Cash and due from banks ..................................................................................................
Interest earning deposits with banks (excluding the deposit with the bank of Japan) ........
Cash and cash equivalents .................................................................................................
2014
¥32,991,113
(5,997,949)
¥26,993,164
2015
¥39,748,979
(6,150,298)
¥33,598,680
Millions of yen
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SMFGSMFG 2015Notes to Consolidated Financial Statements (Notes to lease transactions)
1. Financing leases
(1) Lessee side
1) Lease assets
(a) Tangible fixed assets
Tangible fixed assets mainly consisted of branches and equipment.
(b) Intangible fixed assets
Intangible fixed assets are software.
2) Depreciation method of lease assets
Depreciation method of lease assets is reported in 4. Accounting policies (4) Depreciation.
(2) Lessor side
1) Breakdown of lease investment assets
March 31
Lease receivables ......................................................................................................
Residual value .........................................................................................................
Unearned interest income ........................................................................................
Total ........................................................................................................................
Millions of yen
2014
¥1,174,517
102,853
(169,452)
¥1,107,918
2015
¥1,187,853
107,078
(167,407)
¥1,127,525
2) The scheduled collections of lease payments receivables related to lease receivables and investment assets are as follows:
2014
2015
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 ............................................
Lease payments receivable
related to lease receivables
¥266,118
191,627
129,777
66,044
46,480
123,437
¥823,487
Lease payments receivable
related to investment
assets
¥ 332,508
264,101
194,146
134,726
86,255
162,778
¥1,174,517
Lease payments receivable
related to lease receivables
¥295,756
205,864
127,113
82,174
47,544
135,539
¥893,993
Lease payments receivable
related to investment
assets
¥ 337,777
258,682
194,449
138,694
99,092
159,157
¥1,187,853
3) 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 “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 years ended March 31,
2014 and 2015 were ¥2,988 million and ¥2,347 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
(1) Lessee side
Future minimum lease payments on operating leases which were not cancelable were as follows:
March 31
Due within 1 year .........................................................................................................
Due after 1 year ............................................................................................................
Total .............................................................................................................................
2014
¥ 43,498
265,182
¥308,681
2015
¥ 44,637
239,659
¥284,296
Millions of yen
(2) Lessor side
Future minimum lease payments on operating leases which were not cancelable were as follows:
March 31
Due within 1 year .........................................................................................................
Due after 1 year ............................................................................................................
Total .............................................................................................................................
2014
¥140,569
790,238
¥930,807
2015
¥ 165,897
1,027,007
¥1,192,904
Future lease payments receivable on operating leases which were not cancelable at March 31, 2014 and 2015 amounting to ¥0
million and ¥0 million, respectively, on the lessor side were pledged as collateral for borrowings.
Millions of yen
SMFG 2015
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SMFGNotes to Consolidated Financial Statements
(Notes to financial instruments)
1. Status of financial instruments
(1) Policies on financial instruments
SMFG Group conducts banking and other financial services such as leasing, securities, consumer finance, and system development and
information processing. Its banking business includes deposit taking, lending, securities 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 Group 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, 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.
(2) Details of financial instruments and associated risks
1) Financial assets
The main financial assets held by SMFG Group 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 nonperformance 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 “(3) Risk management framework for financial instruments” below.
2) Financial liabilities
Financial liabilities of SMFG Group 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 “(3) Risk management framework for financial instruments”
below.
3) Derivative transactions
Derivatives handled by SMFG Group include foreign exchange futures; futures, forwards, swaps and options related to interest rates,
currencies, equities, bonds and commodities; 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 “(3) Risk management framework for financial instruments” below.
Hedge accounting is applied to derivative transactions executed for ALM purposes, as necessary. Hedging instruments, hedged
items, hedging policy and the method to assess the effectiveness of hedging are described in “(Notes to significant accounting
policies for preparing consolidated financial statements), 4. Accounting policies, (16) Hedge accounting.”
(3) Risk management framework for financial instruments
The fundamental matters on risk management for the entire SMFG Group 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 Group by monitoring the development and implementation
of SMFG Group’s risk management system, and gives appropriate guidance as needed. Under this framework, SMFG comprehensively
and systematically manages risks.
1) 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.
(a) 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 establishes, revises or abolishes credit policies, the internal rating system, credit authority
regulations, credit application regulations, and manages non-performing loans and other aspects of credit portfolio management.
The department also controls SMBC’s total credit risk by quantifying credit risk (i.e. calculating risk capital and risk-weighted
assets) in cooperation with the Corporate Risk Management Dept. The department also monitors risk situations and regularly
reports 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
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SMFGSMFG 2015Notes to Consolidated Financial Statements overall credit portfolio through using credit derivatives and selling loan claims.
The Credit Departments of Wholesale Banking Unit, Retail Banking Unit and other business units play a central role in
credit screening and managing their units’ credit portfolios. In the Wholesale Banking 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. 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 individual borrowers’ business
situations to detect early signs of problems.
Moreover, the Credit Risk Management Committee, a consultative body straddling the business units, rounds out SMBC’s
oversight system for undertaking flexible and efficient control of credit risk and ensuring the overall soundness of the bank’s loan
operations.
In addition to these, the Internal Audit Unit, 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.
(b) 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
screening 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 conditions 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 investments 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 1 party to the other in case of bankruptcy or other default event, are
implemented to reduce credit risk.
2) 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.
(a) Market and liquidity risk management systems
At SMBC, important matters such as basic policies for managing market and liquidity risks and risk management 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 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
SMFG 2015
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SMFGNotes to Consolidated Financial Statements 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 functioning and reports the audit results to the
Management Committee, the Board of Directors and other concerned committees and departments.
(b) 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, 2015, total VaR of SMBC and its major consolidated subsidiaries was ¥39.0 billion for the banking activities,
¥14.5 billion for the trading activities, and ¥1,447.7 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 assumptions and
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 funding gap limits. In addition, to ensure smooth fulfillment of transactions in face
of market turmoil, SMBC holds assets such as U.S. treasuries that can be sold immediately and emergency committed lines as
supplemental liquidity.
Moreover, to manage the liquidity risk of marketable instruments, derivative transactions, etc., SMBC has trading limits
for each business office classified by currency, instrument, transaction period, etc. As for financial futures, etc., risks are
managed by restricting positions to within a certain percentage of open interest in the entire market.
(4) 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.
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SMFGSMFG 2015Notes to Consolidated Financial Statements 2. Fair value of financial instruments
(1) Consolidated balance sheet amount, fair value and net unrealized gains (losses) of financial instruments as of March 31, 2014 and 2015
are as follows:
The amounts shown in the following tables do not include financial instruments whose fair values are extremely difficult to
determine, such as unlisted stocks classified as “Other securities” (see (3) below), and stocks of subsidiaries and affiliates.
March 31, 2014
1) Cash and due from 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 purpose ..................................
7) Money held in trust ...................................................................
8) Securities
Bonds 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
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
¥
¥
—
—
—
*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,”
“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.
010_0800801372708.indd 101
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SMFG 2015
101
SMFGNotes to Consolidated Financial Statements
March 31, 2015
1) Cash and due from 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 purpose ..................................
7) Money held in trust ...................................................................
8) Securities
Bonds 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
¥ 39,739,777
1,326,280
746,431
6,477,063
4,282,392
3,235,701
7,087
3,397,151
25,031,810
73,068,240
(461,747)
72,606,492
1,903,702
1,899,760
¥ 160,653,651
¥ 101,047,918
13,825,898
5,873,123
991,860
7,833,219
3,351,459
2,193,399
9,778,095
1,110,822
1,370,800
6,222,918
718,133
¥ 154,317,650
Millions of yen
Fair value
¥ 39,746,763
1,327,080
747,509
6,477,657
4,293,764
3,235,701
7,087
3,417,732
25,031,810
74,598,557
1,907,769
1,974,558
¥ 162,765,990
¥ 101,053,137
13,829,279
5,873,118
991,860
7,833,219
3,351,431
2,193,399
9,828,014
1,110,822
1,370,799
6,437,691
718,133
¥ 154,590,909
Hedge accounting not applied ..............................................
Hedge accounting applied ....................................................
Total ..........................................................................................
¥
¥
593,008
[861,906]
[268,898]
¥
¥
593,008
[861,906]
[268,898]
Net unrealized
gains (losses)
¥
6,986
800
1,077
593
11,371
—
—
20,580
—
1,992,064
4,066
74,798
¥ 2,112,338
5,219
¥
3,381
(5)
—
—
(27)
—
49,918
—
(0)
214,772
—
¥ 273,259
¥
¥
—
—
—
*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,”
“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.
(2) Fair value calculation methodology for financial instruments
Assets
1) Cash and due from 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 adjustment). 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 premium.
102
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SMFGSMFG 2015Notes to Consolidated Financial Statements
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 subordinated 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 trading 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 estimate future cash flows). Bond yield and yield volatility are the main price parameters. The fair values of those without
market prices, such as private placement bonds, are based on the present value of future cash flows calculated by discounting estimated
future cash flows taking into account the borrower’s internal rating and pledged collateral by a rate comprising a risk-free interest rate
and an adjustment. 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 investment trusts are calculated based on the NAV published by securities firms and other financial institutions.
Liabilities
1) Deposits, 2) Negotiable certificates of deposit and 12) Due to trust account:
The fair values of demand deposits and deposits without maturity are based on their book values. 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 transactions, 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 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 regarded
to approximate their fair values.
Derivatives transactions
The fair values of exchange-traded derivatives are based on their closing prices. With regard to OTC transactions, the fair values of
interest rate, currency, stock, bond and credit derivatives are based on their 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.
010_0800801372708.indd 103
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SMFG 2015
103
SMFGNotes to Consolidated Financial Statements (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
2015
Monetary claims bought without market prices *1 ...................................................
¥ 5,168
¥ 2,537
Securities:
Unlisted stocks, etc. *2 *4 ........................................................................................
Investments in partnership, etc. *3 *4 ......................................................................
Total .............................................................................................................................
261,627
333,409
¥600,204
361,541
259,445
¥623,523
*1 They are beneficiary claims on loan trusts that (a) behave more like equity than debt, (b) do not have market prices, and (c) it is difficult to rationally estimate their 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 changes in their balance sheets and statements of income.
*4 Unlisted stocks and investments in partnership totaling ¥9,781 million and ¥12,762 million were written-off in the fiscal year ended March 31, 2014 and 2015,
respectively.
(4) Redemption schedule of monetary claims and securities with maturities
Millions of yen
March 31, 2014
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
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
*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 Monetary claims bought: ¥ 924 million, Securities: ¥18,145 million, Loans and bills
discounted: ¥891,610 million, Foreign exchanges: ¥2,297 million and Lease receivables and investment assets: ¥20,595 million.
*2 “Loans and bills discounted” without the maturity dates are not included. Such amount is totaled to ¥5,272,610 million at March 31, 2014.
104
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SMFGSMFG 2015Notes to Consolidated Financial Statements
March 31, 2015
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
¥38,506,416
1,272,265
674,341
6,427,273
3,378,992
5,656,240
1,392,417
1,300,000
51,347
41,070
—
4,263,823
1,715,975
28,278
452,917
2,066,652
16,197,047
1,883,491
547,109
¥74,543,178
Millions of yen
After 1 year
through 5 years
¥ 46,508
51,242
72,090
49,790
597,974
14,446,962
2,001,567
1,980,000
16,356
5,210
—
12,445,395
8,893,500
21,904
1,584,554
1,945,436
30,706,918
21,463
1,005,281
¥46,998,231
After 5 years
through 10 years
¥ 20,911
3,456
—
—
48,832
2,311,100
—
—
—
—
—
2,311,100
369,500
1,224
503,625
1,436,750
10,754,197
—
156,851
¥13,295,349
After 10 years
¥ 1,241
—
—
—
221,903
758,126
—
—
—
—
—
758,126
—
35
31,767
726,322
9,205,773
—
50,521
¥10,237,565
*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 Monetary claims bought: ¥21 million, Securities: ¥44,760 million, Loans and bills
discounted: ¥756,824 million, Foreign exchanges: ¥2,712 million, Lease receivables and investment assets: ¥19,460 million.
*2 “Loans and bills discounted” without the maturity dates are not included. Such amount is totaled to ¥5,445,535 million at March 31, 2015.
(5) Redemption schedule of bonds, borrowed money and other interest-bearing debts
March 31, 2014
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
* Demand deposits are included in “Within 1 year.” Deposits include current deposits.
Millions of yen
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
After 10 years
¥ 312,583
111
—
—
—
—
352,164
—
—
359,825
—
¥1,024,684
010_0800801372708.indd 105
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SMFG 2015
105
SMFGNotes to Consolidated Financial Statements
March 31, 2015
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
¥ 95,917,733
13,518,726
5,873,123
991,860
7,833,219
3,351,459
7,158,084
1,110,822
1,370,800
1,023,264
718,133
¥138,867,230
* Demand deposits are included in “Within 1 year.” Deposits include current deposits.
Millions of yen
After 1 year
through 5 years
¥4,284,380
304,980
—
—
—
—
1,306,961
—
—
2,742,910
—
¥8,639,233
After 5 years
through 10 years
¥ 497,816
2,170
—
—
—
—
824,115
—
—
2,034,764
—
¥3,358,866
After 10 years
¥347,987
20
—
—
—
—
488,932
—
—
426,306
—
¥1,263,246
106
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(Notes to securities)
The amounts shown in the following tables include trading securities and short-term bonds classified as “Trading assets,” negotiable certificates
of deposit classified as “Cash and due from banks,” and beneficiary claims on loan trust classified as “Monetary claims bought,” in addition to
“Securities” stated in the consolidated balance sheets.
1. Securities classified as trading purposes
March 31
Valuation gains (losses) included in the earnings for the fiscal year ......................................
Millions of yen
2014
¥(14,077)
2015
¥72,389
2. Bonds classified as held-to-maturity
March 31, 2014
Bonds with unrealized gains:
Japanese government bonds .......................
Japanese local government bonds ...............
Japanese corporate bonds ...........................
Other ........................................................
Subtotal .....................................................
Japanese government bonds .......................
Japanese local government bonds ...............
Japanese corporate bonds ...........................
Other ........................................................
Subtotal .....................................................
Total .............................................................................................................
Bonds with unrealized losses:
March 31, 2015
Bonds with unrealized gains:
Japanese government bonds .......................
Japanese local government bonds ...............
Japanese corporate bonds ...........................
Other ........................................................
Subtotal .....................................................
Japanese government bonds .......................
Japanese local government bonds ...............
Japanese corporate bonds ...........................
Other ........................................................
Subtotal .....................................................
Total .............................................................................................................
Bonds with unrealized losses:
Consolidated balance
sheet amount
¥4,061,397
100,697
86,478
500
4,249,072
269,773
1,883
7,820
8,300
287,777
¥4,536,849
Consolidated balance
sheet amount
¥3,283,044
67,843
46,263
—
3,397,151
—
—
—
—
—
¥3,397,151
Millions of yen
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
Fair value
¥3,303,228
68,065
46,438
—
3,417,732
—
—
—
—
—
¥3,417,732
Net unrealized
gains (losses)
¥31,800
845
1,303
1
33,950
(124)
(1)
(26)
—
(153)
¥33,797
Net unrealized
gains (losses)
¥20,183
221
175
—
20,580
—
—
—
—
—
¥20,580
010_0800801372708.indd 107
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SMFG 2015
107
SMFGNotes to Consolidated Financial Statements
3. Other securities
March 31, 2014
Other securities with
unrealized gains:
Stocks ........................................................
Bonds ........................................................
Japanese government bonds ..................
Japanese local government bonds ..........
Japanese corporate bonds ......................
Other ........................................................
Subtotal .....................................................
Stocks ........................................................
Bonds ........................................................
Japanese government bonds ..................
Japanese local government bonds ..........
Japanese corporate bonds ......................
Other ........................................................
Subtotal .....................................................
Total ..............................................................................................
Other securities with
unrealized losses:
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
Millions of yen
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
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
Notes: 1. Net unrealized gains (losses) on other securities shown above include gains of ¥17,031 million for the fiscal year ended March 31, 2014 that are recognized in the
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, 2014
Stocks .......................................................................................................
Other .......................................................................................................
Total .........................................................................................................
Millions of yen
¥247,357
352,847
¥600,204
These amounts are not included in “3. Other securities” since there are no market prices and it is extremely difficult to determine their fair values.
March 31, 2015
Other securities with
unrealized gains:
Stocks ........................................................
Bonds ........................................................
Japanese government bonds ..................
Japanese local government bonds .............
Japanese corporate bonds ......................
Other ........................................................
Subtotal .....................................................
Stocks ........................................................
Bonds ........................................................
Japanese government bonds ..................
Japanese local government bonds .............
Japanese corporate bonds ......................
Other ........................................................
Subtotal .....................................................
Total ..............................................................................................
Other securities with
unrealized losses:
Consolidated
balance sheet amount
¥ 3,726,432
11,259,951
8,953,781
49,123
2,257,045
6,024,855
21,011,239
119,767
2,439,610
2,053,225
3,026
383,358
2,069,284
4,628,662
¥25,639,901
Millions of yen
Acquisition cost
¥ 1,653,065
11,199,114
8,935,132
48,842
2,215,139
5,505,092
18,357,271
138,826
2,450,418
2,058,905
3,039
388,473
2,088,398
4,677,644
¥23,034,915
Net unrealized
gains (losses)
¥2,073,367
60,837
18,649
281
41,905
519,762
2,653,967
(19,059)
(10,808)
(5,680)
(12)
(5,114)
(19,113)
(48,981)
¥2,604,985
Notes: 1. Net unrealized gains (losses) on other securities shown above include gains of ¥29,870 million for the fiscal year ended March 31, 2015 that are recognized in the
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, 2015
Stocks .......................................................................................................
Other .......................................................................................................
Total .........................................................................................................
Millions of yen
¥219,799
403,724
¥623,523
These amounts are not included in “3.Other securities” since there are no market prices and it is extremely difficult to determine their fair values.
108
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SMFGSMFG 2015Notes to Consolidated Financial Statements 4. Held-to-maturity bonds sold during the fiscal year
Fiscal year ended March 31, 2014
There are no corresponding transactions.
Fiscal year ended March 31, 2015
There are no corresponding transactions.
5. Other securities sold during the fiscal year
Year ended March 31, 2014
Stocks ............................................................................................
Bonds ............................................................................................
Japanese government bonds ......................................................
Japanese local government bonds ..............................................
Japanese corporate bonds ..........................................................
Other ............................................................................................
Total ..............................................................................................
Year ended March 31, 2015
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
Sales amount
¥ 113,544
13,407,655
13,142,974
63,699
200,981
14,275,561
¥27,796,760
Millions of yen
Gains on sales
Losses on sales
¥ 40,211
14,767
13,195
350
1,220
93,937
¥148,915
¥ (6,797)
(8,338)
(7,591)
(294)
(453)
(19,319)
¥(34,455)
Millions of yen
Gains on sales
Losses on sales
¥ 45,455
9,406
8,939
37
429
98,168
¥153,030
¥ (1,890)
(5,699)
(5,593)
(94)
(11)
(16,739)
¥(24,329)
6. Change of classification of securities
Fiscal year ended March 31, 2014
There are no corresponding transactions.
Fiscal year ended March 31, 2015
There are no significant corresponding transactions to be disclosed.
7. Write-down of securities
Bonds classified as held-to-maturity and other securities (excluding securities whose fair values are extremely difficult to determine) are
considered as impaired if the fair value decreases materially below the acquisition cost and such decline is not considered as recoverable. The fair
value is recognized as the consolidated balance sheet amount 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 2015 were ¥7,250 million and ¥5,992 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:
Fair value is lower than acquisition cost.
Issuers requiring caution:
Normal issuers:
Fair value is 30% or lower than acquisition cost.
Fair value is 50% or lower than acquisition cost.
Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt.
Effectively bankrupt issuers: Issuers that are not legally bankrupt but regarded as substantially bankrupt.
Potentially bankrupt issuers: Issuers that are not bankrupt now, but are perceived to have a high risk of falling into bankruptcy.
Issuers requiring caution: Issuers that are identified for close monitoring.
Normal issuers: Issuers other than the above 4 categories of issuers.
010_0800801372708.indd 109
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SMFG 2015
109
SMFGNotes to Consolidated Financial Statements (Notes to money held in trust)
1. Money held in trust classified as trading purposes
Fiscal year ended March 31, 2014
There are no corresponding transactions.
Fiscal year ended March 31, 2015
There are no corresponding transactions.
2. Money held in trust classified as held-to-maturity
Fiscal year ended March 31, 2014
There are no corresponding transactions.
Fiscal year ended March 31, 2015
There are no corresponding transactions.
3. Other money held in trust
March 31, 2014
Other money held in trust .............................................................
Consolidated balance
sheet amount
¥23,120
March 31, 2015
Other money held in trust .............................................................
Consolidated balance
sheet amount
¥7,087
Millions of yen
Acquisition cost
¥23,120
Millions of yen
Acquisition cost
¥7,087
Net unrealized
gains (losses)
—
Net unrealized
gains (losses)
—
110
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SMFGSMFG 2015Notes to Consolidated Financial Statements (Notes to net unrealized gains (losses) on other securities and other money held in trust)
The breakdown of “Net unrealized gains (losses) on other securities” reported on the consolidated balance sheets is as shown below:
March 31, 2014
Net unrealized gains (losses) ..........................................................................................................................................
Other securities ........................................................................................................................................................
Other money held in trust ........................................................................................................................................
(−) Deferred tax liabilities .............................................................................................................................................
Net unrealized gains (losses) on other securities (before following adjustments) .............................................................
(−) Minority interests ....................................................................................................................................................
(+) SMFG’s interest in net unrealized gains (losses) on valuation of other securities held by equity method affiliates ......
Net unrealized gains (losses) on other securities .............................................................................................................
Millions of yen
¥1,388,101
1,388,101
—
404,307
983,793
35,188
902
¥ 949,508
Notes:
1. Net unrealized gains of ¥17,031 million for the fiscal year ended March 31, 2014 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 (losses) on other securities include foreign currency translation adjustments on foreign currency denominated securities whose fair value is extremely
difficult to determine.
March 31, 2015
Net unrealized gains (losses) ..........................................................................................................................................
Other securities ........................................................................................................................................................
Other money held in trust ........................................................................................................................................
(−) Deferred tax liabilities .............................................................................................................................................
Net unrealized gains (losses) on other securities (before following adjustments) .............................................................
(−) Minority interests ....................................................................................................................................................
(+) SMFG’s interest in net unrealized gains (losses) on valuation of other securities held by equity method affiliates ......
Net unrealized gains (losses) on other securities .............................................................................................................
Millions of yen
¥2,575,489
2,575,489
—
727,559
1,847,929
59,441
2,560
¥1,791,049
Notes: 1. Net unrealized gains of ¥29,870 million for the fiscal year ended March 31, 2015 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 (losses) on other securities include foreign currency translation adjustments on foreign currency denominated securities whose fair value is extremely
difficult to determine.
010_0800801372708.indd 111
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SMFG 2015
111
SMFGNotes to Consolidated Financial Statements (Notes to 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.
(1) Interest rate derivatives
March 31, 2014
Listed
Interest rate futures:
Millions of yen
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 .......................................................................
578,076
158,814
Other:
Sold ............................................................................
Bought .......................................................................
Total ................................................................................
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
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 an exchange is calculated using the closing price 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
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SMFGSMFG 2015Notes to Consolidated Financial Statements
March 31, 2015
Listed
Interest rate futures:
Millions of yen
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ............................................................................
Bought .......................................................................
¥ 72,417,655
70,808,254
¥ 27,182,460
25,824,043
¥ (63,824)
58,948
¥ (63,824)
58,948
Interest rate options:
Sold ............................................................................
Bought .......................................................................
345,874
36,305,940
36,168
16,041,662
(110)
6,990
(110)
6,990
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 ..............
6,869,797
6,747,669
449,422,723
211,594,325
209,580,904
28,142,407
35,565
377,473
374,591,082
176,500,223
175,966,222
22,028,051
Interest rate swaptions:
Sold ............................................................................
Bought .......................................................................
3,595,666
2,131,049
2,228,852
1,590,233
Caps:
Sold ............................................................................
Bought .......................................................................
21,514,098
7,165,728
16,330,540
5,603,385
Floors:
Sold ............................................................................
Bought .......................................................................
594,392
98,034
Other:
Sold ............................................................................
Bought .......................................................................
Total ................................................................................
1,004,262
3,924,935
/
417,517
98,034
885,363
3,249,593
/
606
(604)
124,036
6,138,890
(6,018,957)
(2,593)
19,802
(12,738)
(18,189)
(4,231)
(533)
2,659
606
(604)
124,036
6,138,890
(6,018,957)
(2,593)
19,802
(12,738)
(18,189)
(4,231)
(533)
2,659
(6,496)
9,944
¥ 116,260
(6,496)
9,944
¥ 116,260
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 an exchange is calculated using the closing price on the Tokyo Financial Exchange or other relevant exchanges. Fair value of
OTC transactions is calculated using discounted present value and option pricing models.
010_0800801372708.indd 113
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SMFG 2015
113
SMFGNotes to Consolidated Financial Statements
(2) Currency derivatives
March 31, 2014
Listed
Currency futures:
Millions of yen
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:
202,168
338,266
50,921,507
Sold ............................................................................
Bought .......................................................................
Total ................................................................................
2,567,685
2,386,911
/
22,084,755
15,372,964
445,125
31,029
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)
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 Tokyo Financial Exchange or other relevant exchanges. Fair value of OTC
transactions is calculated using discounted present value, option pricing models and other methodologies.
March 31, 2015
Listed
Currency futures:
Millions of yen
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ............................................................................
Bought .......................................................................
¥ 80,931
497
¥ —
—
¥ 180
0
¥ 180
0
Over-the-counter
Currency swaps ................................................................
Currency swaptions:
Sold ............................................................................
Bought .......................................................................
Forward foreign exchange ................................................
Currency options:
Sold ............................................................................
Bought .......................................................................
Total ................................................................................
27,035,522
20,122,147
694,080
10,572
308,906
451,270
62,599,180
2,723,327
2,395,875
/
304,563
443,519
5,225,986
1,495,074
1,248,848
/
(559)
(397)
(141,028)
(181,167)
121,468
¥ 492,576
(559)
(397)
(141,028)
(181,167)
121,468
¥(190,931)
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 Tokyo Financial Exchange or other relevant exchanges. Fair value of OTC
transactions is calculated using discounted present value, option pricing models and other methodologies.
114
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(3) Equity derivatives
March 31, 2014
Listed
Equity price index futures:
Millions of yen
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 .......................................................................
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 ................................................................................
220,479
227,041
—
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)
¥ (2,819)
920
(4,733)
3,107
(25,656)
26,751
—
(262)
(975)
(975)
1,497
¥ (2,169)
1,497
¥ (2,169)
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 or other relevant exchanges. Fair value of OTC transactions
is calculated using discounted present value and option pricing models.
March 31, 2015
Listed
Equity price index futures:
Millions of yen
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ............................................................................
Bought .......................................................................
¥995,977
278,331
Equity price index options:
Sold ............................................................................
Bought .......................................................................
169,645
153,942
Over-the-counter
Equity options:
Sold ............................................................................
Bought .......................................................................
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 ................................................................................
225,859
233,896
16,717
33,481
31,690
59,675
/
¥ —
—
68,750
59,715
218,338
218,338
—
499
31,225
58,570
/
¥(11,341)
6,718
(16,412)
11,545
(23,558)
24,976
126
500
¥(11,341)
6,718
(16,412)
11,545
(23,558)
24,976
126
500
(1,262)
(1,262)
1,942
¥ (6,764)
1,942
¥ (6,764)
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 or other relevant exchanges. Fair value of OTC transactions
is calculated using discounted present value and option pricing models.
010_0800801372708.indd 115
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SMFG 2015
115
SMFGNotes to Consolidated Financial Statements
(4) Bond derivatives
March 31, 2014
Listed
Bond futures:
Millions of yen
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
Bond forwards:
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
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 or other relevant exchanges. Fair value of OTC transactions
is calculated using discounted present value and option pricing models.
March 31, 2015
Listed
Bond futures:
Millions of yen
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ............................................................................
Bought .......................................................................
¥3,261,725
2,668,201
¥ —
—
¥(23,171)
15,828
¥(23,171)
15,828
Bond futures options:
Sold ............................................................................
Bought .......................................................................
38,448
39,048
—
—
(40)
107
(40)
107
Over-the-counter
Bond options:
Sold ............................................................................
Bought .......................................................................
Total ................................................................................
39,607
174,030
/
—
134,394
/
(123)
655
¥ (6,743)
(123)
655
¥ (6,743)
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 or other relevant exchanges. Fair value of OTC transactions
is calculated using option pricing models.
116
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(5) Commodity derivatives
March 31, 2014
Listed
Commodity futures:
Millions of yen
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
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 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. Underlying assets of commodity derivatives are fuels and metals.
March 31, 2015
Listed
Commodity futures:
Millions of yen
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ............................................................................
Bought .......................................................................
¥ 14,001
15,703
¥ —
—
¥ 1,546
(2,183)
¥ 1,546
(2,183)
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 ................................................................................
111,581
87,933
3,922
15,529
9,095
/
72,095
62,634
3,384
13,787
7,946
/
7,608
(5,971)
(132)
(506)
(108)
¥ 253
7,608
(5,971)
(132)
(506)
(108)
¥ 253
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 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. Underlying assets of commodity derivatives are fuels and metals.
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SMFG 2015
117
SMFGNotes to Consolidated Financial Statements
(6) Credit derivative transactions
March 31, 2014
Over-the-counter
Credit default options:
Millions of yen
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)
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.
March 31, 2015
Over-the-counter
Credit default options:
Millions of yen
Contract amount
Total
Over 1 year
Fair value
Valuation
gains (losses)
Sold ............................................................................
Bought .......................................................................
Total ................................................................................
¥491,723
652,486
/
¥397,171
520,233
/
¥ 6,882
(9,456)
¥(2,574)
¥ 6,882
(9,456)
¥(2,574)
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.
118
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SMFGSMFG 2015Notes to Consolidated Financial Statements
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 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.
(1) Interest rate derivatives
March 31, 2014
Hedge accounting
method
Deferral hedge
method
Principal items
hedged
Interest-earning/bearing
financial assets/liabilities such
as loans and bills discounted,
other securities (bonds),
deposits and negotiable
certificates of deposit
Type of derivative
Interest futures:
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 ................................................
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:
Receivable floating rate/payable fixed
rate ....................................................
Receivable floating rate/payable floating
rate ....................................................
Total ..........................................................
Loans and bills discounted;
borrowed money, corporate
bonds
Millions of yen
Contract amount
Total
Over 1 year
Fair value
¥ 823,040
—
¥ 823,040
—
¥ 24
—
29,012,108
25,144,657
393,005
16,247,276
15,479,650
(373,123)
10,423
11,543
—
23,267
23,267
—
11,543
—
18,139
18,139
(8)
154
—
383
(383)
18,475
8,581
(482)
193,202
164,962
(4,105)
85,591
73,689
(Note 3)
5,000
/
3,000
/
¥ 15,464
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 price 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 the “(Notes to financial instruments) 2. Fair
value of financial instruments.”
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SMFG 2015
119
SMFGNotes to Consolidated Financial Statements
March 31, 2015
Hedge accounting
method
Deferral hedge
method
Principal items
hedged
Interest-earning/bearing
financial assets/liabilities
such as loans and bills
discounted, other securities,
deposits and negotiable
certificates of deposit
Type of derivative
Interest futures:
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 ................................................
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:
Receivable floating rate/payable fixed
rate ....................................................
Receivable floating rate/payable floating
rate ....................................................
Total ..........................................................
Loans and bills discounted;
borrowed money, corporate
bonds
Millions of yen
Contract amount
Total
Over 1 year
Fair value
¥ 9,431,618
1,300,300
¥ 6,067,453
—
¥ (5,029)
(41)
31,042,631
26,461,484
718,262
16,875,562
15,294,056
(666,588)
3,604
12,344
—
65,156
65,156
—
12,344
—
61,248
61,248
4
89
—
135
(135)
148,693
91,040
728
167,412
149,076
(Note 3)
3,000
/
1,000
/
¥ 47,425
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 price 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 the “(Notes to financial instruments) 2. Fair
value of financial instruments. ”
120
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(2) Currency derivatives
March 31, 2014
Hedge accounting
method
Deferral hedge
method
Recognition of gain or
loss on the hedged items
Allocation method
Type of derivative
Principal items hedged
Currency swaps ................................ Foreign currency denominated loans and
bills discounted; other securities (bonds);
deposits; foreign currency exchange, etc.
Forward foreign exchange ................
Currency swaps ................................ Loans and bills discounted; foreign
Forward foreign exchange ................
Currency swaps ................................ Other securities (bonds), borrowed
Forward foreign exchange ................
Total ................................................
exchange
money
Millions of yen
Contract amount
Total
¥5,002,828
Over 1 year
¥3,567,270
Fair value
¥(500,931)
24,659
—
34,642
309,265
28,466
3,720
/
6,075
14,658
24,870
—
/
208
3,350
910
(Note 3)
¥(496,461)
Notes: 1. SMFG 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).
2. Fair value is calculated using discounted present value.
3. Forward foreign exchange amounts treated by the allocation method are treated with 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 the “(Notes to financial instruments) 2. Fair value of financial
instruments.”
March 31, 2015
Hedge accounting
method
Deferral hedge
method
Type of derivative
Principal items hedged
Currency swaps ................................ Foreign currency denominated loans and
Total
¥6,727,385
Over 1 year
¥4,770,873
Fair value
¥(911,989)
Forward foreign exchange ................
bills discounted; other securities; deposits;
foreign currency exchange, etc.
8,980
—
(36)
Millions of yen
Contract amount
Recognition of gain or
loss on the hedged items
Allocation method
Currency swaps ................................ Loans and bills discounted; foreign
Forward foreign exchange ................
Currency swaps ................................ Borrowed money
Total ................................................
exchange
100,155
813,122
39,455
/
84,886
16,526
36,397
/
16,193
(173)
(Note 3)
¥(896,005)
Notes: 1. SMFG 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).
2. Fair value is calculated using discounted present value.
3. Forward foreign exchange amounts treated by the allocation method are treated with 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 the “(Notes to financial instruments) 2. Fair value of financial
instruments.”
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SMFG 2015
121
SMFGNotes to Consolidated Financial Statements
(3) Equity derivatives
March 31, 2014
Hedge accounting
method
Recognition of gain or
loss on the hedged items
Type of derivative
Principal items
hedged
Equity price index swaps:
Receivable equity index/payable floating
Other securities
(equity)
rate ..........................................................
Receivable floating rate/payable equity
index .......................................................
Total ..............................................................
Note:
Fair value is calculated using discounted present value.
March 31, 2015
Hedge accounting
method
Recognition of gain or
loss on the hedged items
Principal items
hedged
Other securities
Type of derivative
Equity price index futures:
Sold .............................................................
Bought ........................................................
Equity price index swaps:
Receivable equity index/payable floating
rate ..........................................................
Receivable floating rate/payable equity
index .......................................................
Total ..............................................................
Millions of yen
Contract amount
Total
Over 1 year
Fair value
¥ —
¥ —
¥ —
115,244
/
59,945
/
3,483
¥3,483
Millions of yen
Contract amount
Total
Over 1 year
Fair value
¥118,375
—
¥ —
—
¥ 1,687
—
—
65,978
/
—
8,769
/
—
(15,013)
¥(13,326)
Note: Fair value of transactions listed on exchange is calculated using the closing price on the Osaka Exchange or other relevant exchanges. Fair value of OTC transactions is
calculated using discounted present value.
122
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(Notes to employee retirement benefits)
1. Outline of employee retirement benefits
SMFG’s consolidated subsidiaries 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
(1) Reconciliation of beginning and ending balances of projected benefit obligation
Millions of yen
Year ended March 31
Beginning balance of projected benefit obligation .........................................................
Cumulative effects of changes in accounting policies ..................................................
Restated balance ...........................................................................................................
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 ..............................................................
2014
¥1,117,085
—
1,117,085
30,713
17,115
(19,815)
(56,367)
(74)
631
¥1,089,286
(2) 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 ........................................................................................
2014
¥1,036,130
31,068
90,050
46,496
(41,077)
1,165
¥1,163,834
Millions of yen
2015
¥1,089,286
(52,699)
1,036,587
31,681
13,913
50,926
(50,266)
60
206
¥1,083,109
2015
¥1,163,834
34,677
213,991
48,937
(40,973)
801
¥1,421,268
(3) Reconciliation of the projected benefit obligation and plan assets to net defined benefit asset and net defined benefit liability reported on
the consolidated balance sheets
March 31
Funded projected benefit obligation ..............................................................................
Plan assets ....................................................................................................................
Unfunded projected benefit obligation ..........................................................................
Net amount of asset 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
March 31
Net defined benefit asset ...............................................................................................
Net defined benefit liability ..........................................................................................
Net amount of asset and liability reported on the consolidated balance sheet ................
2014
¥119,932
(45,385)
¥ 74,547
2015
¥(1,049,307)
1,421,268
371,961
(33,802)
¥ 338,159
2015
¥376,255
(38,096)
¥338,159
SMFG 2015
123
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SMFGNotes to Consolidated Financial Statements (4) 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 ..........................................................................................................
2014
¥ 30,713
17,115
(31,068)
36,294
(182)
1,325
¥ 54,197
Note: Pension expenses of consolidated subsidiaries which adopt the simplified method are included in “Service cost.”
2015
¥ 31,681
13,913
(34,677)
22,763
(129)
6,850
¥ 40,402
Millions of yen
(5) Remeasurements of defined benefit plans
The breakdown of “Remeasurements of defined benefit plans” (before deducting tax effect) is as shown below:
Year ended March 31
Prior service cost ...........................................................................................................
Net actuarial gain or loss ..............................................................................................
Total .............................................................................................................................
Millions of yen
2014
¥—
—
¥—
2015
¥ 190
(185,835)
¥(185,645)
(6) Accumulated remeasurements of defined benefit plans
The breakdown of “Accumulated 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 .............................................................................................................................
2014
¥ (1,146)
116,198
¥115,051
2015
¥ (956)
(69,637)
¥(70,594)
Millions of yen
(7) Plan assets
1) Major asset classes of plan assets
The proportion of major asset classes to the total plan assets is as follows:
March 31
Stocks ......................................................................................................................
Bonds ......................................................................................................................
Other ......................................................................................................................
Total ........................................................................................................................
2014
2015
59.4%
22.9%
17.7%
100.0%
62.8%
21.5%
15.7%
100.0%
Note: The retirement benefit trusts set up for employee pension plans and lump-sum severance indemnity plans account for 34.1% and 37.9% of the total plan assets at
March 31, 2014 and 2015, respectively.
2) 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.
(8) Actuarial assumptions
The principal assumptions used in determining benefit obligation and pension expenses are as follows:
1) Discount rate
Year ended March 31, 2014
Domestic consolidated subsidiaries ........................
Overseas consolidated subsidiaries .........................
Year ended March 31, 2015
Percentages
0.4% to 2.0% Domestic consolidated subsidiaries ........................
3.5% to 11.3% Overseas consolidated subsidiaries .........................
Percentages
0.4% to 1.6%
3.1% to 12.0%
124
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SMFGSMFG 2015Notes to Consolidated Financial Statements 2) Long-term expected rate of return on plan assets
Year ended March 31, 2014
Domestic consolidated subsidiaries ........................
Overseas consolidated subsidiaries .........................
Percentages
Year ended March 31, 2015
0% to 4.0% Domestic consolidated subsidiaries ........................
4.3% to 10.5% Overseas consolidated subsidiaries .........................
Percentages
0% to 6.1%
3.1% to 12.0%
3. Defined contribution plan
Fiscal year ended March 31, 2014
The amount required to be contributed by the consolidated subsidiaries is ¥5,936 million.
Fiscal year ended March 31, 2015
The amount required to be contributed by the consolidated subsidiaries is ¥6,770 million.
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SMFG 2015
125
SMFGNotes to Consolidated Financial Statements (Notes to stock options)
1. Amount of stock options expenses
Stock options expenses which were accounted for as general and administrative expenses for the fiscal years ended March 31, 2014 and 2015
are as follows:
Year ended March 31
General and administrative expenses ...................................................................................
Millions of yen
2014
¥549
2015
¥510
2. Amount of profit by non-exercise of stock acquisition rights
Profit by non-exercise of stock acquisition rights which were accounted for as other income for the fiscal years ended March 31, 2014 and
2015 are as follows:
Year ended March 31
Other income .....................................................................................................................
Millions of yen
2014
¥13
2015
¥14
3. Outline of stock options and changes
(1) SMFG
1) Outline of stock options
Date of resolution
Title and number of
grantees ...........................
Number of
stock options* .................
July 28, 2010
July 29, 2011
July 30, 2012
July 29, 2013
Directors of SMFG 8
Corporate auditors of SMFG 3
Executive officers of SMFG 2
Directors, corporate auditors and
executive officers of SMBC 69
Directors of SMFG 9
Corporate auditors of SMFG 3
Executive officers of SMFG 2
Directors, corporate auditors and
executive officers of SMBC 71
Directors of SMFG 9
Corporate auditors of SMFG 3
Executive officers of SMFG 2
Directors, corporate auditors and
executive officers of SMBC 71
Directors of SMFG 9
Corporate auditors of SMFG 3
Executive officers of SMFG 3
Directors, corporate auditors and
executive officers of SMBC 67
Common shares
102,600
August 13, 2010
Grant date .........................
Condition for vesting ......... 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.
From 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
Exercise period ..................
Requisite service period .....
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.
From 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
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.
From 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
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.
From 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
126
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SMFGSMFG 2015Notes to Consolidated Financial Statements
Date of resolution
Title and number of
grantees ...........................
Number of
stock options* .................
July 30, 2014
Directors of SMFG 10
Corporate auditors of SMFG 3
Executive officers of SMFG 2
Directors, corporate auditors and
executive officers of SMBC 67
Common shares
121,900
August 15, 2014
Grant date .........................
Condition for vesting ......... 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.
From June 27, 2014 to the
closing of the ordinary general
meeting of shareholders of
SMFG for the fiscal year ended
March 31, 2015
August 15, 2014 to
August 14, 2044
Requisite service period .....
Exercise period ..................
* Number of stock options has been converted and stated as number of shares.
2) Stock options granted and changes
(a) 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 .....................................
July 28, 2010
39,600
—
—
1,200
38,400
58,800
1,200
1,200
—
58,800
July 29, 2011
Number of stock options
July 30, 2012
July 29, 2013
185,200
—
—
33,900
151,300
76,600
33,900
—
—
110,500
258,400
—
—
25,900
232,500
18,700
25,900
—
—
44,600
115,400
—
200
3,600
111,600
100
3,600
—
—
3,700
July 30, 2014
—
121,900
100
200
121,600
—
200
—
—
200
Note: Number of stock options has been converted and stated as number of shares.
(b) Price information
Date of resolution
Exercise price .......................................
Average exercise price ..........................
Fair value at the grant date ..................
July 28, 2010
¥ 1
4,084
2,215
July 29, 2011
¥ 1
—
1,872
Yen
July 30, 2012
¥ 1
—
2,042
July 29, 2013
¥ 1
—
4,159
July 30, 2014
¥ 1
—
3,661
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SMFG 2015
127
SMFGNotes to Consolidated Financial Statements
3) 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 ......................................................................
July 30, 2014
28.16%
4 years
¥120 per share
0.11%
*1. Calculated based on the actual stock prices during 4 years from August 16, 2010 to August 15, 2014.
*2. The average expected life could not be estimated rationally due to insufficient amount of data.
Therefore, it was estimated based on average assumption periods of directors of SMFG and SMBC.
*3. Expected dividends are based on the expected dividends on common stock for the fiscal year ended March 31, 2015 of the date of grant.
*4. Japanese government bond yield corresponding to the average expected life.
4) 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.
(2) A consolidated subsidiary, KUBC
1) 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 ............................
June 29, 2004
Directors and
employees
174
Common shares
39,900
July 30, 2004
N.A.
N.A.
June 30, 2006
to June 29, 2014
June 29, 2005
Directors and
employees
183
Common shares
46,400
July 29, 2005
N.A.
N.A.
June 30, 2007
to June 29, 2015
June 29, 2006
Directors
9
Common shares
16,200
July 31, 2006
N.A.
N.A.
June 30, 2008
to June 29, 2016
June 29, 2006
Officers not doubling
as directors 14
Employees 46
Common shares
11,500
July 31, 2006
N.A.
N.A.
June 30, 2008
to June 29, 2016
Date of resolution
Title and number of grantees .......
June 28, 2007
Directors
10
June 28, 2007
Officers not doubling
as directors 14
Employees 48
Number of stock options* ...........
Grant date ...................................
Condition for vesting ...................
Requisite service period ...............
Exercise period ............................
Common shares
17,400
July 31, 2007
N.A.
N.A.
June 29, 2009
to June 28, 2017
Common shares
11,200
July 31, 2007
N.A.
N.A.
June 29, 2009
to June 28, 2017
June 27, 2008
Directors 9
Officers not doubling
as directors 16
Employees 45
Common shares
28,900
July 31, 2008
N.A.
N.A.
June 28, 2010
to June 27, 2018
June 26, 2009
Directors 11
Officers not doubling
as directors 14
Employees 57
Common shares
35,000
July 31, 2009
N.A.
N.A.
June 27, 2011
to June 26, 2019
* Number of stock options has been converted and stated as the number of shares in consideration of the reverse stock split to combine 10 common shares as one share,
performed on October 1, 2014.
128
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SMFGSMFG 2015Notes to Consolidated Financial Statements 2) Stock options granted and changes
(a) Number of stock options
Date of resolution
Before vested
June 29,
2004
June 29,
2005
June 29,
2006
Number of stock options
June 28,
June 29,
2007
2006
June 28,
2007
June 27,
2008
June 26,
2009
Previous fiscal year-end ......
Granted .............................
Forfeited ............................
Vested ...............................
Outstanding ......................
—
—
—
—
—
—
—
—
—
—
After vested
Previous fiscal year-end ......
Vested ...............................
Exercised ...........................
Forfeited ............................
Exercisable ........................
19,700
—
—
19,700
27,200
—
—
4,600
— 22,600
—
—
—
—
—
9,400
—
—
3,200
6,200
—
—
—
—
—
6,800
—
—
1,100
5,700
—
—
—
—
—
12,200
—
—
4,400
7,800
—
—
—
—
—
8,000
—
—
1,000
7,000
—
—
—
—
—
—
—
—
—
—
28,400
—
—
5,700
22,700
35,000
—
—
3,100
31,900
Note: Number of stock options has been converted and stated as the number of shares in consideration of the reverse stock split to combine 10 common shares as one
share, performed on October 1, 2014.
(b) Price information
Date of resolution
Exercise price ..........................
Average exercise price .............
Fair value at the grant date .....
June 29,
2004
¥2,020
—
—
June 29,
2005
¥3,130
—
—
June 29,
2006
¥4,900
—
1,380
June 29,
2006
¥4,900
—
1,380
June 28,
2007
¥4,610
—
960
June 28,
2007
¥4,610
—
960
June 27,
2008
¥3,020
—
370
June 26,
2009
¥1,930
—
510
Yen
3) 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.
(3) A consolidated subsidiary, MINATO
1) Outline of stock options
Date of resolution
Title and number of grantees .......
June 28, 2012
Directors 7
Officers 12
Common shares 368,000
July 20, 2012
Number of stock options* ..........
Grant date ..................................
Condition for vesting .................. 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.
Requisite service period .............. 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
Exercise period ...........................
* Number of stock options has been converted and stated as number of shares.
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
June 27, 2014
Directors 7
Officers 16
Common shares 320,000
July 18, 2014
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, 2014 to the closing of
the ordinary general meeting
of shareholders of MINATO
for the fiscal year ended March
31, 2015
July 19, 2014 to July 18, 2044
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SMFG 2015
129
SMFGNotes to Consolidated Financial Statements
2) Stock options granted and changes
(a) 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 ..................................................
June 28, 2012
Number of stock options
June 27, 2013
June 27, 2014
272,000
—
—
70,000
202,000
73,000
70,000
—
—
143,000
306,000
—
—
83,000
223,000
22,000
83,000
—
—
105,000
—
320,000
12,000
46,000
262,000
—
46,000
—
—
46,000
Note: Number of stock options has been converted and stated as number of shares.
(b) Price information
Date of resolution
Exercise price ....................................................
Average exercise price .......................................
Fair value at the grant date ...............................
June 28, 2012
¥ 1
—
132
June 27, 2013
¥ 1
—
166
June 27, 2014
¥ 1
—
181
3) 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 .......................................................................
June 27, 2014
26.49%
2 years
¥5 per share
0.06%
*1 Calculated based on the actual stock prices during 2 years from July 19, 2012 to July 18, 2014.
*2 The average expected life could not be estimated rationally due to insufficient amount of data. Therefore, it was estimated based on average assumption periods of
directors of MINATO.
*3 Expected dividends are based on the actual dividends on common stock for the fiscal year ended March 31, 2014.
*4 Japanese government bond yield corresponding to the average expected life.
4) 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.
130
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(Notes to deferred tax assets and liabilities)
1. Significant components of deferred tax assets and liabilities
March 31, 2014
Deferred tax assets:
Millions of yen March 31, 2015
Deferred tax assets:
Millions of yen
Net operating loss carryforwards ............................ ¥ 380,685
Reserve for possible loan losses and write-off of
454,436
loans ....................................................................
148,032
Write-off of securities ............................................
63,120
Net defined benefit liability ...................................
40,919
Remeasurements of defined benefit plans ...............
34,227
Deferred losses on hedges.......................................
Other ....................................................................
212,602
Subtotal ................................................................. 1,334,023
(681,593)
Valuation allowance ...............................................
Total deferred tax assets ..............................................
652,429
Deferred tax liabilities:
Net unrealized gains on other securities .................
Gains on securities contributed to employee
retirement benefits trust ......................................
Leveraged lease ......................................................
Other ....................................................................
(408,763)
(38,524)
(20,378)
(114,972)
Total deferred tax liabilities ........................................
(582,640)
Net deferred tax assets (liabilities) .............................. ¥ 69,789
Net operating loss carryforwards ............................ ¥ 320,680
Reserve for possible loan losses and write-off of
loans ....................................................................
Write-off of securities ............................................
Net defined benefit liability ...................................
Deferred losses on hedges.......................................
Other ....................................................................
290,628
113,876
35,174
14,082
248,581
Subtotal ................................................................. 1,023,023
(568,997)
Valuation allowance ...............................................
Total deferred tax assets ..............................................
454,026
Deferred tax liabilities:
(731,045)
Net unrealized gains on other securities .................
Gains on securities contributed to employee
(35,492)
retirement benefits trust ......................................
(23,160)
Remeasurements of defined benefit plans ...............
(22,513)
Leveraged lease ......................................................
(115,367)
Other ....................................................................
Total deferred tax liabilities ........................................
(927,578)
Net deferred tax assets (liabilities) .............................. ¥ (473,551)
2. Significant components of difference between the statutory tax rate used by SMFG and the effective income tax rate
March 31, 2014
Statutory tax rate ........................................................
Difference between SMFG and overseas
consolidated subsidiaries ......................................
Valuation allowance ...............................................
Dividends exempted for income tax purposes.........
Effects of changes in the corporate income tax rate .
Other ....................................................................
Effective income tax rate .............................................
Percentages
March 31, 2015
Percentages
38.01% Statutory tax rate ........................................................
35.64%
Difference between SMFG and overseas
(2.66)
consolidated subsidiaries ......................................
(1.90)
Dividends exempted for income tax purposes.........
(1.51)
Valuation allowance ...............................................
0.78
Effects of changes in the corporate income tax rate .
Other ....................................................................
(0.47)
32.25% Effective income tax rate .............................................
(2.34)
(2.05)
(0.48)
2.10
0.84
33.71%
3. Adjustments to deferred tax assets and liabilities arising from a change in the income tax rate
In accordance with the Act for Partial Amendment of the Income Tax Act, etc. (Act No. 9, 2015) and the Act for Partial Amendment of the
Local Tax Act, etc. (Act No. 2, 2015) on March 31, 2015, the corporate income tax rate is lowered from fiscal years beginning on or after April
1, 2015. As a result of these changes, the effective statutory tax rate used by SMFG and its consolidated domestic subsidiaries for the calculation
of deferred tax assets and liabilities was changed from the current rate of 35.64% to 33.06% for temporary differences and other items expected
to be eliminated during the period beginning from the fiscal year beginning on April 1, 2015, and to 32.26% for temporary differences and
other items expected to be eliminated in the fiscal year beginning on or after April 1, 2016. As a result of these changes in tax rates, “Net
deferred tax assets (liabilities)” increased by ¥49,304 million, “Net unrealized gains (losses) on other securities” increased by ¥75,867 million,
“Net deferred gains (losses) on hedges” decreased by ¥1,318 million, “Remeasurements of defined benefit plans” increased by ¥2,285 million,
and “Income tax deferred” increased by ¥27,529 million before considering about minority interests. “Deferred tax liabilities for land
revaluation excess” decreased by ¥3,604 million, while “Land revaluation excess” increased by the same amount before considering about
minority interests.
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SMFG 2015
131
SMFGNotes to Consolidated Financial Statements
(Notes to asset retirement obligations)
Fiscal year ended March 31, 2014
There is no significant information to be disclosed.
Fiscal year ended March 31, 2015
There is no significant information to be disclosed.
(Notes to real estate for rent)
Fiscal year ended March 31, 2014
There is no significant information to be disclosed.
Fiscal year ended March 31, 2015
There is no significant information to be disclosed.
132
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SMFGSMFG 2015Notes to Consolidated Financial Statements (Notes to segment and other related information)
[Segment information]
1. Summary of reportable segment
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 and SMFG’s Management Committee 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, system development
and data processing. The primary businesses, “Commercial banking,” “Leasing,” “Securities” and “Consumer Finance,” are separate reportable
segments, and other businesses are aggregated as “Other business.”
SMBC assesses business performance by classifying “Commercial banking” into the following 4 business units: “Wholesale banking unit,”
“Retail banking unit” and “International banking unit” that are based on the client segment, and “Treasury unit” that is based on the financial
markets.
SMBC reviewed its domestic business units with an aim to improve its ability to meet customers’ needs and provide more value-added
products and services by reconstructing business model for each segment. “Customer banking unit,” “Middle market banking unit” and
“Corporate banking unit,” which were 3 domestic business units, have changed into 2 business units; “Retail banking unit” and “Wholesale
banking unit.”
From the fiscal year ended March 31, 2015, the performance assessment method was changed by, for example, changing the definition of
consolidated net business profit, in order to enhance the group business management.
Information for the fiscal year ended March 31, 2014 indicates profit and loss amount by reportable segment prepared based on the above-
mentioned revisions.
2. Method of calculating profit and loss amount by reportable segment
Accounting methods applied to the reported business segment are the same as those described in “(Notes to significant accounting policies for
preparing consolidated financial statements).”
SMFG does not assess assets by business segments.
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SMFG 2015
133
SMFGNotes to Consolidated Financial Statements 3. Information on profit and loss amount by reportable segment
Millions of yen
Commercial banking
SMBC
Year ended March 31, 2014
Sub-total
Gross profit ......................... ¥1,558,184
Interest income ............... 1,064,906
493,277
Non-interest income .......
(745,745)
Expenses, etc. ......................
(81,666)
Depreciation ..................
Consolidated net
business profit .................... ¥ 812,438
Wholesale
Banking
Unit
¥ 558,538
323,396
235,142
(200,758)
(23,550)
SMBC
Retail
Banking
Unit
¥ 405,391
321,309
84,082
(336,413)
(31,292)
International
Banking
Unit
¥295,984
174,587
121,397
(89,093)
(9,745)
Treasury
Unit
¥325,522
225,207
100,315
(22,901)
(4,810)
Head office
account
¥ (27,250)
20,407
(47,658)
(96,580)
(12,269)
Others
¥ 249,055
171,143
77,912
(195,566)
(10,635)
Total
¥1,807,239
1,236,050
571,189
(941,311)
(92,302)
¥ 357,780
¥ 68,978
¥206,891
¥302,621
¥(123,831)
¥ 53,488
¥ 865,927
Year ended March 31, 2014
Gross profit .........................
Interest income ...............
Non-interest income .......
Expenses, etc. ......................
Depreciation ...................
Consolidated net
business profit ....................
SMFL
¥127,861
29,088
98,773
(52,830)
(4,070)
Leasing
Others
¥10,584
6,137
4,446
(1,603)
(415)
Millions of yen
Securities
Total
¥138,446
35,226
103,219
(54,433)
(4,485)
SMBC Nikko
¥339,299
229
339,070
(235,255)
(2,842)
SMBC Friend
¥58,153
1,329
56,823
(42,426)
(1,927)
Others
¥ 304
1,083
(778)
(14,281)
(746)
Total
¥397,758
2,642
395,115
(291,963)
(5,516)
¥ 75,031
¥ 8,981
¥ 84,012
¥104,044
¥15,726
¥(13,976)
¥105,794
SMCC
Year ended March 31, 2014
Gross profit ......................... ¥ 189,932
13,917
176,014
(139,625)
(10,336)
Interest income ...............
Non-interest income .......
Expenses, etc. ......................
Depreciation ...................
Millions of yen
Cedyna
¥ 167,571
28,309
139,621
(123,614)
(9,607)
Consumer Finance
SMBCCF
¥181,806
124,366
57,439
(72,996)
(3,732)
Others
¥ 795
(9,947)
10,743
(16,521)
(2,180)
Total
¥ 540,105
156,646
383,459
(352,758)
(25,856)
Grand
Total
Other
Business
¥ 14,684 ¥ 2,898,233
1,484,169
1,414,064
(1,559,703)
(136,541)
53,603
(38,919)
80,763
(8,379)
Consolidated net
business profit .................... ¥ 50,306
¥ 43,956
¥108,810
¥ 15,725
¥ 187,347
¥ 95,447 ¥ 1,338,530
Notes: 1. Figures shown in the parenthesis represent the loss.
2. SMFL and SMBCCF represents consolidated figures of SMFL and SMBCCF.
“SMBC Nikko” represents non-consolidated figures of SMBC Nikko plus figures of the overseas incorporated securities companies.
“Cedyna” represents consolidated figures of Cedyna excluding figures of the immaterial subsidiaries.
3. “Other business” includes profit or loss to be eliminated as inter-segment transactions.
134
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SMFGSMFG 2015Notes to Consolidated Financial Statements
Millions of yen
Commercial banking
SMBC
Year ended March 31, 2015
Sub-total
Gross profit ......................... ¥1,634,284
Interest income ............... 1,121,428
512,856
Non-interest income .......
(791,211)
Expenses, etc. ......................
(82,976)
Depreciation ..................
Consolidated net
business profit .................... ¥ 843,073
Wholesale
Banking
Unit
¥555,429
315,796
239,633
(206,778)
(23,281)
SMBC
Retail
Banking
Unit
¥ 386,784
313,171
73,613
(350,047)
(31,317)
International
Banking
Unit
¥345,332
227,808
117,524
(106,637)
(10,195)
Treasury
Unit
¥353,990
212,361
141,629
(25,918)
(4,682)
Head office
account
¥ (7,250)
52,292
(59,542)
(101,831)
(13,501)
Others
Total
¥ 289,397 ¥1,923,682
1,292,650
631,032
(994,135)
(93,018)
171,222
118,175
(202,923)
(10,041)
¥348,651
¥ 36,737
¥238,695
¥328,072
¥(109,081)
¥ 86,473 ¥ 929,547
SMFL
Year ended March 31, 2015
Gross profit ......................... ¥136,965
19,311
117,654
(56,497)
(3,555)
Interest income ...............
Non-interest income .......
Expenses, etc. ......................
Depreciation ...................
Leasing
Others
¥12,325
5,132
7,193
(4,244)
(4,720)
Millions of yen
Securities
Total
¥149,290
24,443
124,847
(60,742)
(8,275)
SMBC Nikko
¥ 346,294
1,498
344,796
(248,680)
(2,720)
SMBC Friend
¥ 50,393
1,246
49,146
(39,993)
(1,707)
Others
¥ (2,799)
1,015
(3,814)
(13,238)
(677)
Total
¥ 393,888
3,759
390,128
(301,913)
(5,105)
Consolidated net
business profit .................... ¥ 80,467
¥ 8,081
¥ 88,548
¥ 97,613
¥ 10,399
¥(16,037)
¥ 91,974
SMCC
Year ended March 31, 2015
Gross profit ......................... ¥ 196,462
13,667
182,794
(146,087)
(11,577)
Interest income ...............
Non-interest income .......
Expenses, etc. ......................
Depreciation ...................
Millions of yen
Cedyna
¥ 164,205
25,916
138,289
(121,750)
(8,686)
Consumer Finance
SMBCCF
¥215,559
149,016
66,543
(96,123)
(5,942)
Others
¥ 661
(9,943)
10,605
(17,944)
(2,178)
Total
¥ 576,889
178,657
398,232
(381,906)
(28,385)
Grand
Total
Other
Business
¥(63,347) ¥ 2,980,403
1,505,178
1,475,224
(1,669,942)
(146,209)
5,668
(69,015)
68,754
(11,423)
Consolidated net
business profit ...................... ¥ 50,375
¥ 42,455
¥119,436
¥(17,283)
¥ 194,982
¥ 5,407 ¥ 1,310,461
Notes: 1. Figures shown in the parenthesis represent the loss.
2. SMFL and SMBCCF represents consolidated figures of SMFL and SMBCCF.
“SMBC Nikko” represents non-consolidated figures of SMBC Nikko plus figures of the overseas incorporated securities companies.
“Cedyna” represents consolidated figures of Cedyna excluding figures of the immaterial subsidiaries.
3. “Other business” includes profit or loss to be eliminated as inter-segment transactions.
4. Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on consolidated
statements of income (adjustment of difference)
Year ended March 31, 2014
Consolidated net business profit ................................................................................................................................
Other ordinary income (excluding equity in gains of affiliates) ..................................................................................
Other ordinary expenses ...........................................................................................................................................
Ordinary profit on consolidated statements of income ...............................................................................................
Year ended March 31, 2015
Consolidated net business profit ................................................................................................................................
Other ordinary income .............................................................................................................................................
Other ordinary expenses (excluding equity in losses of affiliates) ...............................................................................
Ordinary profit on consolidated statements of income ...............................................................................................
Millions of yen
¥1,338,530
296,337
(202,536)
¥1,432,332
Millions of yen
¥1,310,461
218,008
(207,313)
¥1,321,156
010_0800801372708.indd 135
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SMFG 2015
135
SMFGNotes to Consolidated Financial Statements
[Related information]
Fiscal year ended March 31, 2014
1. Information on each service
Commercial
banking
Leasing
Securities
Consumer
Finance
Other
business
Total
Millions of yen
Ordinary income to external
customers ......................................
¥2,541,625
¥586,777
¥402,925
¥992,827
¥117,724
¥4,641,880
Note: Consolidated ordinary income is presented as a counterpart of sales of companies in other industries.
2. Geographic information
(1) Ordinary income
Japan
¥3,762,300
The Americas
¥237,908
Millions of yen
Europe and Middle East
¥354,980
Asia and Oceania
¥286,690
Total
¥4,641,880
Notes: 1. Consolidated ordinary income is presented as a counterpart of sales of companies in other industries.
2. Ordinary income from transactions of SMFG and its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic consolidated
subsidiaries is classified as “Japan.” Ordinary income from transactions of overseas branches of domestic consolidated banking subsidiaries and overseas consolidated
subsidiaries is classified as “The Americas,” “Europe and Middle East” and “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.
(2) Tangible fixed assets
Japan
¥1,296,644
The Americas
¥132,232
Millions of yen
Europe and Middle East
¥902,456
Asia and Oceania
¥15,455
Total
¥2,346,788
3. Information on major customers
There are no major customers individually accounting for 10% or more of ordinary income reported on the consolidated statements of income.
Fiscal year ended March 31, 2015
1. Information on each service
Commercial
banking
Leasing
Securities
Consumer
Finance
Other
business
Total
Millions of yen
Ordinary income to external
customers ...............................
¥2,557,945
¥691,177
¥494,779
¥1,013,679
¥93,620
¥4,851,202
Note: Consolidated ordinary income is presented as a counterpart of sales of companies in other industries.
2. Geographic information
(1) Ordinary income
Japan
¥3,783,696
The Americas
¥294,216
Millions of yen
Europe and Middle East
¥387,251
Asia and Oceania
¥386,037
Total
¥4,851,202
Notes: 1. Consolidated ordinary income is presented as a counterpart of sales of companies in other industries.
2. Ordinary income from transactions of SMFG and its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic consolidated
subsidiaries is classified as “Japan.” Ordinary income from transactions of overseas branches of domestic consolidated banking subsidiaries and overseas consolidated
subsidiaries is classified as “The Americas,” “Europe and Middle East” and “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.
(2) Tangible fixed assets
Japan
¥1,360,804
The Americas
¥191,232
Millions of yen
Europe and Middle East
¥1,201,437
Asia and Oceania
¥17,378
Total
¥2,770,853
136
010_0800801372708.indd 136
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SMFGSMFG 2015Notes to Consolidated Financial Statements
3. Information on major customers
There are no major customers individually accounting for 10% or more of ordinary income reported on the consolidated statements of income.
[Information on impairment loss for fixed assets by reportable segment]
Year ended March 31,2014
Impairment loss .............................
Commercial
Banking
¥2,551
Leasing
Securities
—
¥65
Consumer finance
¥481
Other business
¥250
Total
¥3,348
Millions of yen
Year ended March 31,2015
Impairment loss .............................
Commercial
Banking
¥4,906
Leasing
Securities
—
¥173
Consumer finance
¥29
Other business
—
Total
¥5,109
Millions of yen
[Information on amortization of goodwill and unamortized balance by reportable segment]
Millions of yen
Year ended March 31, 2014
Amortization of goodwill ..............
Unamortized balance .....................
Year ended March 31, 2015
Amortization of goodwill ..............
Unamortized balance .....................
Commercial
Banking
¥ 1,380
24,109
Commercial
Banking
¥ 2,010
22,098
Leasing
Securities
¥ 9,664
80,523
¥ 14,021
202,216
Consumer finance
¥ 3,942
70,200
Other business
¥23
94
Total
¥ 29,033
377,145
Millions of yen
Leasing
Securities
¥ 6,446
75,414
¥ 14,013
188,202
Consumer finance
¥ 4,025
66,180
Other business
¥23
71
Total
¥ 26,521
351,966
[Information on gains on negative goodwill by reportable segment]
Fiscal year ended March 31, 2014
There is no significant information to be disclosed.
Fiscal year ended March 31, 2015
There are no corresponding transactions.
[Information on total credit cost by reportable segment]
Year ended March 31, 2014
Total credit cost .............................
Commercial
banking
¥(116,546)
Leasing
Securities
Consumer
finance
¥(889)
¥11
¥66,796
Other business
¥1,554
Total
¥(49,073)
Notes: 1. Total credit cost = Write-off loans + Losses on sales of delinquent loans – Gains on reversal of reserve for possible loan losses – Recoveries of written-off claims.
Millions of yen
2. “Other business” includes profit or loss to be eliminated as inter-segment transactions.
3. Figures shown in the parenthesis represent the reversal of total credit cost.
Year ended March 31, 2015
Total credit cost .............................
Commercial
banking
Leasing
Securities
Consumer
finance
¥(68,299)
¥(6,066)
¥(212)
¥78,780
Other business
¥3,644
Total
¥7,847
Notes: 1. Total credit cost = Write-off loans + Losses on sales of delinquent loans – Gains on reversal of reserve for possible loan losses – Recoveries of written-off claims.
Millions of yen
2. “Other business” includes profit or loss to be eliminated as inter-segment transactions.
3. Figures shown in the parenthesis represent the reversal of total credit cost.
010_0800801372708.indd 137
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SMFG 2015
137
SMFGNotes to Consolidated Financial Statements
[Information on related parties]
Fiscal year ended March 31, 2014
There is no significant information to be disclosed.
Fiscal year ended March 31, 2015
There is no significant information to be disclosed.
(Business Combinations)
There is no significant business combination to be disclosed.
(Per Share Data)
As of and year ended March 31
Net assets ................................................................................................................................
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:
Yen
2014
¥5,323.87
611.45
611.14
2015
¥6,598.87
551.18
550.85
Millions of yen except number of shares
2014
2015
Net income .........................................................................................................
Amount not attributable to common stockholders ...............................................
Net income attributable to common stock ...........................................................
Average number of common stock during the fiscal year (in thousand) .................
¥ 835,357
—
¥ 835,357
1,366,186
Net income per share (diluted):
Adjustment for net income ..................................................................................
Adjustment of dilutive shares issued by subsidiaries and affiliates ...................
Increase in number of common stock (in thousand) ..............................................
Stock acquisition rights ..................................................................................
Outline of dilutive shares which were not included in the calculation of “Net income
per share (diluted)” because they do not have dilutive effect:
¥
(0)
(0)
698
698
—
¥ 753,610
—
¥ 753,610
1,367,258
¥
(0)
(0)
816
816
—
2. Net assets per share are 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
2015
¥10,696,271
1,674,022
2,284
1,671,738
¥ 9,022,249
1,367,273
1,367,241
3. Changes in accounting policies
As described in (Notes to significant accounting policies for preparing consolidated financial statements), SMFG has adopted Paragraph 35 of “Accounting Standard for
Retirement Benefits” (ASBJ Statement No. 26 issued on May 17, 2012, “Accounting Standard”) and Paragraph 67 of “Guidance on Accounting Standard for Retirement
Benefits” (ASBJ Guidance No. 25 issued on March 26, 2015, “Guidance”) from the beginning of the fiscal year ended March 31, 2015. Accordingly, SMFG applies the
transitional treatment stipulated in Paragraph 37 of the Accounting Standard.
As a result, net assets per share as of April 1, 2014 increased by ¥ 25.93.
(Significant Subsequent Events)
There is no significant subsequent event to be disclosed.
138
010_0800801372708.indd 138
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SMFGSMFG 2015Notes to Consolidated Financial Statements
Type of bonds
Date of
issuance
At the beginning of
the fiscal year
At the end of
the fiscal year
Millions of yen
Percentages
Interest
rate (Note 1) Collateral
[Consolidated supplementary financial schedules]
[Schedule of bonds]
Company
SMFG
SMBC
Straight bonds, payable in Yen ........... Sep. 12, 2014
Subordinated bonds, payable in Yen ... Sep. 12, 2014
Subordinated bonds, payable in U.S.
Short-term bonds, payable in Yen
(Note 4) ...........................................
Straight bonds, payable in Yen (Note
4) .....................................................
Straight bonds, payable in Yen (Note
4) .....................................................
dollars (Note 3) ............................... Apr. 2, 2014
Mar. 2014 ~
Mar. 2015
Aug. 2004 ~
Sep. 2004
May. 2009 ~
Apr. 2014
Mar. 2006 ~
Feb. 2007
(Note 4) ...........................................
Straight bonds, payable in Euroyen
Straight bonds, payable in U.S. dollars
(Notes 3 and 4) ...................................
Jul. 2010 ~
Mar. 2015
Straight bonds, payable in British
pound sterling (Notes 3 and 4) .........
Straight bonds, payable in Euro
(Note 3) ..............................................
Mar. 18,
2013
Jul. 2013 ~
Jan. 2015
Straight bonds, payable in Australian
dollars (Notes 3 and 4) .......................
Straight bonds, payable in Hong Kong
Dec. 2011 ~
Mar. 2015
dollars (Note 3) ................................ Mar. 5, 2015
Oct. 2004 ~
Dec. 2011
Nov. 2011 ~
Jan. 2013
Jun. 2005 ~
Dec. 2009
Mar. 1,
2012
Jul. 22,
2005
Nov. 9,
2010
Jul. 22,
2005
Apr. 2004 ~
Mar. 2015
Subordinated bonds, payable in Yen
(Note 4) ..............................................
Subordinated bonds, payable
in Yen .................................................
Subordinated bonds, payable
in Euroyen ..........................................
Subordinated bonds, payable in U. S.
dollars (Note 3) ..................................
Perpetual subordinated bonds, payable
in U. S. dollars (Note 3) ......................
Subordinated bonds, payable in Euro
(Note 3) ..............................................
Perpetual subordinated bonds, payable
in Euro (Note 3) ...............................
Consolidated subsidiaries, straight bonds,
payable in Yen (Notes 2 and 4) ............
Consolidated subsidiaries, straight
bonds, payable in Yen
(Notes 2,3 and 4) ............................
Apr. 2014 ~
Mar. 2015
(*1)
(*2)
(*3)
Consolidated subsidiaries, straight
bonds, payable
in Renminbi (Notes 2,3 and 4) ........
Consolidated subsidiaries, straight bonds,
Sep. 2011 ~
Aug. 2012
Consolidated subsidiaries, subordinated
bonds, payable in Yen (Notes 2 and 4) ...
payable in Yen(Notes 2 and 3) ............. May 5, 2014
Mar. 1996~
Dec. 2012
Apr. 2013 ~
Mar. 2015
—
bonds, payable in Yen(Notes 2 and 4) ..
Total ....................................................................
Consolidated subsidiaries, short-term
(*4)
(*5)
(*6)
—
—
—
¥ 25,000
[25,000]
65,000
[30,000]
861,808
[196,396]
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]
—
739,271
[49,997]
355,522
130,800
153,765
($1,494,609 thousand)
33,641
($327,001 thousand)
105,391
(€744,503 thousand)
46,839
(€330,881 thousand)
458,229
[51,250]
—
14,931
(RMB900,000 thousand)
[4,977]
—
136,200
1,120,200
[1,120,200]
¥ 6,236,094
99,399
34,800
209,788
($ 1,746,058 thousand)
25,000
[25,000]
35,000
729,974
[370,000]
500
[500]
2,562,816
($21,330,140 thousand)
[432,540]
44,502
(£250,000 thousand)
[44,502]
259,206
(€1,989,456 thousand)
137,981
(A$1,499,469 thousand)
[12,882]
13,392
(HK$864,000 thousand)
583,046
[50,000]
354,715
12,000
178,636
($1,486,780 thousand)
39,309
($327,169 thousand)
96,452
(€740,294 thousand)
43,152
(€331,204 thousand)
629,682
[91,114]
1,457
($13,000 thousand)
[108]
11,616
(RMB600,000 thousand)
[11,616]
19,287
(RMB996,255 thousand)
126,200
[10,000]
1,345,800
[1,345,800]
¥ 7,593,718
Date of
maturity
Sep. 12, 2024
Sep. 12, 2024
None
None
None
Apr. 2, 2024
None
None
None
Apr. 2015
Aug. 2016 ~
Sep. 2016
Apr. 2015 ~
Apr. 2019
0.849
0.61
4.436
0.07
0.03429 ~
0.08143
0.254 ~
0.69
0.01286
None
May 8, 2015
0.5741 ~
4.13
None
Jul. 2015 ~
Mar. 2030
1.11438
1.00 ~
2.75
2.97 ~
4.13
2.55
1.43 ~
2.8
0.87 ~
1.1
2.564 ~
2.97
None Mar. 18, 2016
Dec. 2020 ~
Jul. 2023
None
None
None
None
None
None
Mar. 2016 ~
Mar. 2025
Mar. 7, 2022
Aug. 2015 ~
Dec. 2026
Nov. 2021 ~
Feb. 2023
Jun. 2023 ~
Jun. 2035
4.85
None
Mar. 1, 2022
5.625
None
Perpetual
4
None
Nov. 9, 2020
4.375
0.01 ~
13.71
0.01 ~
3.8
None
None
None
Perpetual
Apr. 2015 ~
Mar. 2045
Apr. 2015 ~
Feb. 2020
4
None
Aug. 3, 2015
5.8
2.19 ~
4.5
0.085 ~
0.16
—
None
None
None
—
May 5, 2016
Mar. 2016 ~
Perpetual
Apr. 2015 ~
Oct. 2015
—
Notes: 1. “Interest rate” indicates a nominal interest rate which is applied at respective consolidated balance sheet dates. Therefore, this rate may differ from an actual interest rate.
2. (*1) This represents an aggregate of straight bond issued in yen by SMFL, SMBC Nikko and SMBCCF, domestic consolidated subsidiaries.
(*2) This is a straight bond issued in U.S. dollar by SMBC Nikko, domestic consolidated subsidiaries.
(*3) This is a straight bond issued in Renminbi by SMFL, a domestic consolidated subsidiary.
(*4) This is a straight bond issued in Renminbi by Sumitomo Mitsui Banking Corporation (China) Limited, an overseas consolidated subsidiary.
(*5) This represents an aggregate of perpetual subordinated bonds and subordinated term bonds issued in yen by SMBC International Finance N.V., an overseas consolidated
subsidiary and KUBC and MINATO, domestic consolidated subsidiaries.
(*6) This is a short-term bond issued by SMFL, SMBC Nikko and Cedyna, domestic consolidated subsidiaries.
3. Figures showed in ( ) in “At the beginning of the fiscal year” and “At the end of the fiscal year” are in foreign currency.
4. Figures showed in [ ] in “At the beginning of the fiscal year” and “At the end of the fiscal year” are the amounts to be redeemed within one year.
5. The redemption schedule over the next 5 years after respective balance sheet dates of the consolidated subsidiaries was as follows:
010_0800801372708.indd 139
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SMFG 2015
139
SMFGNotes to Consolidated Financial Statements Within 1 year
¥2,394,064
More than 1 year
to 2 years
¥928,235
Millions of yen
More than 2 years
to 3 years
¥871,686
More than 3 years
to 4 years
¥352,981
More than 4 years
to 5 years
¥590,006
[Schedule of borrowings]
Classification
Borrowed money ..........................................
Other borrowings ....................................
Lease obligations ..........................................
Millions of yen
At the beginning of
the fiscal year
At the end of
the fiscal year
Percentages
Average
interest rate
¥7,020,841
7,020,841
93,622
¥9,778,095
9,778,095
101,840
0.40
0.40
4.58
Repayment Term
—
Jan. 2015 ~ Perpetual
Apr. 2015 ~ Jul. 2032
Notes: 1. “Average interest rate” represents the weighted average interest rate based on the interest rates and “At the end of the fiscal year” at respective balance sheet dates of
consolidated subsidiaries.
2. The redemption schedule over the next 5 years on Borrowings and Lease obligations after respective balance sheet dates of the consolidated subsidiaries was as follows:
Other borrowings ...........................
Lease obligations ............................
Within 1 year
¥7,158,084
20,698
More than 1
year to 2 years
¥311,200
17,484
Millions of yen
More than 2
years to 3 years
¥203,305
15,976
More than 3
years to 4 years
¥462,193
14,548
More than 4
years to 5 years
¥330,261
13,157
Since the commercial banking business accepts deposits and raises and manages funds through the call loan and commercial paper markets
as a normal course of business, the schedule of borrowings shows a breakdown of Borrowed money included in the “Liabilities” and Lease
obligations included in “Other liabilities” in the consolidated balance sheet.
Reference: Commercial paper issued for funding purpose as a normal course of business is as follows:
Commercial paper ........................................
¥2,374,051
At the beginning of
the fiscal year
At the end of
the fiscal year
¥3,351,459
Millions of yen
Percentages
Average
interest rate
0.29
Repayment Term
Apr. 2015 ~ Feb. 2016
[Schedule of asset retirement obligations]
Since the amount of asset retirement obligations accounts for 1% or less than the total of liabilities and net assets, the schedule of asset
retirement obligation is not disclosed.
[Others]
Quarterly consolidated financial information in the fiscal year ended March 31,2015 were as follows;
Ordinary income ..........................................
Income before income taxes and minority
interests ......................................................
Net income ..................................................
Net income per share ....................................
Millions of yen (except Net income per share)
First quarter
consolidated
total period
¥1,118,656
366,265
230,819
168.82
Second quarter
consolidated
total period
¥2,360,297
778,005
479,548
350.73
Third quarter
consolidated
total period
¥3,556,519
1,102,834
682,220
498.97
Fiscal year ended March
31, 2015
¥4,851,202
1,309,377
753,610
551.18
Net income per share ....................................
First quarter
consolidated
accounting period
¥168.82
Second quarter
consolidated
accounting period
¥181.91
Third quarter
consolidated
accounting period
¥148.23
Fourth quarter
consolidated
accounting period
¥52.21
Yen
140
010_0800801372708.indd 140
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SMFGSMFG 2015Notes to Consolidated Financial Statements
(Non-consolidated financial statements)
1. Non-consolidated balance sheets
March 31
Assets:
Current assets
Millions of yen
2014
2015
Millions of U.S.
dollars
2015
Cash and due from banks .........................................................................
Prepaid expenses......................................................................................
Accrued income ........................................................................................
Accrued income tax refunds .....................................................................
Other current assets ..................................................................................
Total current assets ...................................................................................
¥ 79,901
31
51
42,244
1,814
124,042
¥ 201,862
61
4,786
102,966
2,275
311,951
Fixed assets
Tangible fixed assets
Buildings ..............................................................................................
Equipment............................................................................................
Total tangible fixed assets ...................................................................
Intangible fixed assets
Software ...............................................................................................
Total intangible fixed assets.................................................................
Investments and other assets
0
1
1
267
267
Investments in subsidiaries and affiliates ............................................
Long-term loans receivable from subsidiaries and affiliates ...............
Total investments and other assets .....................................................
Total fixed assets.......................................................................................
Total assets ....................................................................................................
6,155,487
—
6,155,487
6,155,756
¥6,279,799
Liabilities:
Current liabilities
Short-term borrowings ..............................................................................
Accounts payable .....................................................................................
Accrued expenses ....................................................................................
Income taxes payable ...............................................................................
Business office taxes payable ...................................................................
Reserve for employee bonuses.................................................................
Reserve for executive bonuses .................................................................
Other current liabilities ..............................................................................
Total current liabilities ................................................................................
Fixed liabilities
Bonds ........................................................................................................
Long-term borrowings ..............................................................................
Total fixed liabilities ...................................................................................
Total liabilities ................................................................................................
¥1,228,030
916
3,275
17
7
157
98
630
1,233,133
392,900
—
392,900
1,626,033
30
0
31
265
265
6,155,487
376,262
6,531,750
6,532,046
¥6,843,998
¥1,228,030
870
7,084
21
7
180
97
961
1,237,253
611,962
31,000
642,962
1,880,215
Net assets:
Stockholders’ equity
Capital stock .............................................................................................
Capital surplus
2,337,895
2,337,895
Capital reserve .....................................................................................
Other capital surplus............................................................................
Total capital surplus .............................................................................
1,559,374
24,347
1,583,721
1,559,374
24,349
1,583,723
Retained earnings
Other retained earnings
Voluntary reserve ...........................................................................
Retained earnings brought forward ...............................................
Total retained earnings.........................................................................
Treasury stock ...........................................................................................
Total stockholders’ equity .........................................................................
Stock acquisition rights .................................................................................
Total net assets ..............................................................................................
Total liabilities and net assets ............................................................................
30,420
712,661
743,081
(12,566)
4,652,131
1,634
4,653,766
¥6,279,799
30,420
1,022,371
1,052,791
(12,713)
4,961,697
2,085
4,963,782
¥6,843,998
$ 1,680
1
40
857
19
2,596
0
0
0
2
2
51,232
3,132
54,363
54,366
$56,962
$10,221
7
59
0
0
1
1
8
10,298
5,093
258
5,351
15,649
19,458
12,979
203
13,181
253
8,509
8,762
(106)
41,296
17
41,313
$56,962
010_0800801372708.indd 141
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SMFG 2015
141
SMFGNotes to Consolidated Financial Statements 2. Non-consolidated Statements of Income
Year ended March 31
Operating income:
Dividends on investments in subsidiaries and affiliates ..................................
Fees and commissions received from subsidiaries ........................................
Interests on loans receivable from subsidiaries and affiliates .........................
Total operating income ....................................................................................
Operating expenses:
General and administrative expenses .............................................................
Interest on bonds ............................................................................................
Interest on long term borrowings ....................................................................
Total operating expenses ................................................................................
Operating profit ...................................................................................................
Non-operating income:
Interest income on deposits ............................................................................
Fees and commissions income .......................................................................
Other non-operating income ...........................................................................
Total non-operating income ............................................................................
Non-operating expenses:
Interest on borrowings ....................................................................................
Fees and commissions payments ...................................................................
Amortization of bond issuance cost ................................................................
Other non-operating expenses .......................................................................
Total non-operating expenses .........................................................................
Ordinary profit ......................................................................................................
Income before income taxes ..............................................................................
Income taxes-current ......................................................................................
Income taxes ........................................................................................................
Net income ...........................................................................................................
Millions of yen
2014
2015
Millions of U.S.
dollars
2015
¥206,833
13,476
—
220,309
8,788
16,468
—
25,256
195,052
57
5
78
141
6,170
2
—
—
6,172
189,021
189,021
3
3
¥189,018
¥504,097
13,800
9,492
527,391
8,683
25,034
20
33,739
493,651
163
2
80
246
5,894
0
2,028
0
7,923
485,974
485,974
3
3
¥485,970
$4,196
115
79
4,389
72
208
0
281
4,109
1
0
1
2
49
0
17
0
66
4,045
4,045
0
0
$4,045
Per share data:
Net income ...........................................................................................................
Net income (diluted) .............................................................................................
Yen
2014
2015
U.S. dollars
2015
¥134.04
133.98
¥344.64
344.44
$2.87
2.87
142
010_0800801372708.indd 142
2015/08/03 11:37:38
SMFGSMFG 2015Notes to Consolidated Financial Statements
3. Non-consolidated Statements of changes in net assets
Millions of yen
Stockholders’ equity
Capital surplus
Retained earnings
Year ended March 31, 2014
Balance at the beginning of the fiscal year ... ¥2,337,895
Capital
stock
Capital
reserve
¥1,559,374
Other capital
surplus
¥24,343
Total capital
surplus
¥1,583,717
Changes in the fiscal year:
Cash dividends ..............................
Net income .....................................
Purchase of treasury stock ............
Disposal of treasury stock ..............
Net changes in items other than
3
3
Other retained earnings
Voluntary
reserve
¥30,420
Retained earnings
brought forward
¥ 699,913
Total retained
earnings
¥ 730,333
(176,270)
189,018
(176,270)
189,018
stockholders’ equity in the fiscal year .....
—
Net changes in the fiscal year ..............
Balance at the end of the fiscal year .... ¥2,337,895
—
¥1,559,374
3
¥24,347
3
¥1,583,721
—
¥30,420
12,747
¥ 712,661
12,747
¥ 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 ....
Millions of yen
Stockholders’ equity
Treasury
stock
¥(12,082)
Total
¥4,639,865
Stock
acquisition
rights
¥1,140
Total
net assets
¥4,641,005
(176,270)
189,018
(500)
19
(500)
16
(176,270)
189,018
(500)
19
(484)
¥(12,566)
12,266
¥4,652,131
494
494
¥1,634
494
12,760
¥4,653,766
010_0800801372708.indd 143
2015/08/03 11:37:38
SMFG 2015
143
SMFGNotes to Consolidated Financial Statements Millions of yen
Stockholders’ equity
Capital surplus
Retained earnings
Year ended March 31, 2015
Balance at the beginning of the fiscal year ... ¥2,337,895
Capital
stock
Capital
reserve
¥1,559,374
Other capital
surplus
¥24,347
Total capital
surplus
¥1,583,721
Changes in the fiscal year:
Cash dividends ..............................
Net income .....................................
Purchase of treasury stock ............
Disposal of treasury stock ..............
Net changes in items other than
2
2
Other retained earnings
Voluntary
reserve
¥30,420
Retained earnings
brought forward
¥ 712,661
Total retained
earnings
¥ 743,081
(176,260)
485,970
(176,260)
485,970
stockholders’ equity in the fiscal year .....
Net changes in the fiscal year ..............
—
Balance at the end of the fiscal year .... ¥2,337,895
—
¥1,559,374
2
¥24,349
2
¥1,583,723
—
¥30,420
309,709
¥1,022,371
309,709
¥1,052,791
Year ended March 31, 2015
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
¥(12,566) ¥4,652,131
Stock
acquisition
rights
¥1,634
Total
net assets
¥4,653,766
(176,260)
485,970
(161)
17
(161)
15
(176,260)
485,970
(161)
17
(146)
309,565
¥(12,713) ¥4,961,697
451
451
¥2,085
451
310,016
¥4,963,782
144
010_0800801372708.indd 144
2015/08/03 11:37:38
SMFGSMFG 2015Notes to Consolidated Financial Statements Year ended March 31, 2015
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 U. S. dollars
Stockholders’ equity
Capital surplus
Retained earnings
Capital
stock
$19,458
Capital
reserve
$12,979
Other capital
surplus
$203
Total capital
surplus
$13,181
Other retained earnings
Voluntary
reserve
Retained earnings
brought forward
$ 5,931
$253
Total retained
earnings
$ 6,185
(1,467)
4,045
(1,467)
4,045
0
0
—
$19,458
—
$12,979
0
$203
0
$13,181
—
$253
2,578
$ 8,509
2,578
$ 8,762
Year ended March 31, 2015
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 U. S. dollars
Stockholders’ equity
Treasury
stock
$(105)
(1)
0
Total
$38,719
(1,467)
4,045
(1)
0
Stock
acquisition
rights
$14
Total
net assets
$38,733
(1,467)
4,045
(1)
0
(1)
$(106)
2,576
$41,296
4
4
$17
4
2,580
$41,313
010_0800801372708.indd 145
2015/08/03 11:37:38
SMFG 2015
145
SMFGNotes to Consolidated Financial Statements 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 2015, 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
accordance 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
conducted 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 2015, 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, 2015 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S.
dollar amounts and, in our opinion, such translation has been made on the basis described in basis of presentation.
June 25, 2015
Tokyo, Japan
146
010_0800801372708.indd 146
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SMFGSMFG 2015 Supplemental Information
Consolidated Balance Sheets (Unaudited)
Sumitomo Mitsui Banking Corporation and Subsidiaries
Millions of yen
2014
March 31
Assets:
Cash and due from banks .................................................................................... ¥ 32,826,744
Call loans and bills bought ..................................................................................
1,248,235
522,860
Receivables under resale agreements .................................................................
3,737,208
Receivables under securities borrowing transactions ..........................................
3,420,145
Monetary claims bought ......................................................................................
6,846,729
Trading assets .....................................................................................................
Money held in trust ..............................................................................................
14,572
27,092,373
Securities .............................................................................................................
69,754,391
Loans and bills discounted ..................................................................................
1,790,406
Foreign exchanges ..............................................................................................
218,360
Lease receivables and investment assets ...........................................................
Other assets ........................................................................................................
1,703,060
976,903
Tangible fixed assets ............................................................................................
122,847
Assets for rent .................................................................................................
277,481
Buildings ..........................................................................................................
Land ................................................................................................................
444,100
11,369
Lease assets ...................................................................................................
Construction in progress .................................................................................
55,759
65,344
Other tangible fixed assets .............................................................................
445,686
Intangible fixed assets ..........................................................................................
Software ..........................................................................................................
236,775
168,807
Goodwill ..........................................................................................................
Lease assets ...................................................................................................
206
39,895
Other intangible fixed assets ...........................................................................
115,847
Net defined benefit asset .....................................................................................
Deferred tax assets ..............................................................................................
101,929
5,632,563
Customers’ liabilities for acceptances and guarantees .......................................
Reserve for possible loan losses ..........................................................................
(623,876)
Total assets .......................................................................................................... ¥155,824,141
2015
¥ 39,569,276
1,326,965
746,431
6,447,116
4,128,907
7,364,988
1
29,559,334
75,119,565
1,907,667
252,213
3,422,970
1,073,206
158,224
287,583
468,728
11,270
75,883
71,515
454,584
261,433
157,350
140
35,660
367,953
68,265
6,289,881
(540,134)
¥177,559,197
Millions of
U.S. dollars
2015
$ 329,332
11,044
6,212
53,659
34,365
61,298
0
246,020
625,215
15,877
2,099
28,489
8,932
1,317
2,394
3,901
94
632
595
3,783
2,176
1,310
1
297
3,062
568
52,350
(4,495)
$1,477,813
010_0800801372708.indd 147
2015/08/03 11:37:38
SMFG 2015
147
SMBC (Continued)
Millions of yen
2014
March 31
Liabilities and net assets:
Liabilities:
Deposits .............................................................................................................. ¥ 94,543,064
13,973,339
Negotiable certificates of deposit ........................................................................
4,113,650
Call money and bills sold .....................................................................................
1,708,801
Payables under repurchase agreements .............................................................
5,328,427
Payables under securities lending transactions ..................................................
Commercial paper ................................................................................................
2,374,051
4,740,484
Trading liabilities ...................................................................................................
5,101,073
Borrowed money .................................................................................................
451,658
Foreign exchanges ..............................................................................................
302,500
Short-term bonds ................................................................................................
Bonds ..................................................................................................................
4,906,764
Due to trust account ............................................................................................
699,329
3,145,635
Other liabilities .....................................................................................................
55,272
Reserve for employee bonuses ............................................................................
Reserve for executive bonuses ............................................................................
4,244
14,625
Net defined benefit liability ..................................................................................
Reserve for executive retirement benefits ............................................................
814
2,025
Reserve for point service program .......................................................................
14,858
Reserve for reimbursement of deposits ...............................................................
Reserve for losses on interest repayment ............................................................
774
402
Reserve under the special laws ............................................................................
Deferred tax liabilities ..........................................................................................
30,739
Deferred tax liabilities for land revaluation excess ..............................................
38,276
5,632,563
Acceptances and guarantees ..............................................................................
147,183,378
Total liabilities ......................................................................................................
Net assets :
Capital stock ........................................................................................................
1,770,996
2,717,397
Capital surplus .....................................................................................................
Retained earnings ................................................................................................
2,468,427
(210,003)
Treasury stock ......................................................................................................
6,746,818
Total stockholders’ equity ...................................................................................
938,235
Net unrealized gains (losses) on other securities ................................................
(59,626)
Net deferred gains (losses) on hedges .................................................................
Land revaluation excess .......................................................................................
35,675
Foreign currency translation adjustments ............................................................
6,779
(74,755)
Accumulated remeasurements of defined benefit plans ......................................
846,308
Total accumulated other comprehensive income ..............................................
157
Stock acquisition rights .......................................................................................
1,047,479
Minority interests ..................................................................................................
8,640,763
Total net assets ....................................................................................................
Total liabilities and net assets ............................................................................. ¥155,824,141
2015
¥101,503,889
14,032,798
5,873,123
991,860
7,833,219
3,352,662
5,636,406
8,223,808
1,110,822
545,700
5,663,566
718,133
5,098,781
59,893
2,567
12,641
759
1,798
20,870
632
755
514,070
34,550
6,289,881
167,523,193
1,770,996
2,717,421
2,751,080
(210,003)
7,029,494
1,756,894
(27,049)
38,943
114,413
44,216
1,927,419
198
1,078,891
10,036,003
¥177,559,197
Millions of
U.S. dollars
2015
$ 844,810
116,794
48,882
8,255
65,195
27,904
46,911
68,446
9,245
4,542
47,137
5,977
42,437
498
21
105
6
15
174
5
6
4,279
288
52,350
1,394,284
14,740
22,617
22,897
(1,748)
58,506
14,623
(225)
324
952
368
16,042
2
8,980
83,529
$1,477,813
148
010_0800801372708.indd 148
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SMFG 2015SMBCSupplemental Information
Consolidated Statements of Income and
Consolidated Statements of Comprehensive Income (Unaudited)
Sumitomo Mitsui Banking Corporation and Subsidiaries
(Consolidated Statements of Income)
Millions of yen
Year ended March 31
Ordinary income ...................................................................................................
Interest income ................................................................................................
Interest on loans and discounts .................................................................
Interest and dividends on securities ..........................................................
Interest on call loans and bills bought .......................................................
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 ..................................................................................
Lease-related income .................................................................................
Installment-related income .........................................................................
Other ..........................................................................................................
Other income ...................................................................................................
Gains on reversal of reserve for possible loan losses ................................
Recoveries of written-off claims .................................................................
Other ..........................................................................................................
Ordinary expenses ..........................................................................................
Interest expenses ............................................................................................
Interest on deposits ...................................................................................
Interest on negotiable certificates of deposit .............................................
Interest on call money and bills sold ..........................................................
Interest on payables under repurchase agreements ..................................
Interest on payables under securities lending transactions .......................
Interest on commercial paper ....................................................................
Interest on borrowed money ......................................................................
Interest on short-term bonds .....................................................................
Interest on bonds ......................................................................................
Other interest expenses .............................................................................
Fees and commissions payments ...................................................................
Trading losses .................................................................................................
Other operating expenses ...............................................................................
Lease-related expenses .............................................................................
Installment-related expenses .....................................................................
Other ..........................................................................................................
General and administrative expenses .............................................................
Other expenses ...............................................................................................
Ordinary profit ......................................................................................................
Extraordinary gains ...............................................................................................
Gains on disposal of fixed assets ...................................................................
Extraordinary losses .............................................................................................
Losses on disposal of fixed assets .................................................................
Losses on impairment of fixed assets .............................................................
Provision for reserve for eventual future operating losses from financial
instruments transactions ...............................................................................
Income before income taxes and minority interests ............................................
Income taxes-current ...........................................................................................
Income taxes-deferred .........................................................................................
Income taxes ........................................................................................................
Income before minority interests ..........................................................................
Minority interests in net income ...........................................................................
Net income ...........................................................................................................
2014
¥3,105,992
1,606,106
1,107,862
344,851
18,351
7,749
7,266
37,798
6,260
75,965
2,393
778,343
189,085
225,360
855
18,550
205,954
304,702
136,457
475
167,769
1,807,254
296,861
105,561
39,142
3,505
4,105
3,486
6,606
16,622
231
89,190
28,409
144,131
—
93,907
881
10,819
82,206
1,195,499
76,853
1,298,738
2,626
2,626
9,427
6,544
2,640
243
1,291,937
233,528
188,880
422,408
869,529
83,841
¥ 785,687
2015
¥3,199,409
1,690,086
1,170,833
335,694
19,600
9,640
7,813
42,649
7,494
96,359
2,795
782,349
235,239
279,857
13,882
18,956
247,018
209,080
73,566
6,619
128,894
2,000,453
365,074
126,966
44,065
4,200
4,921
5,029
8,047
29,312
433
99,581
42,516
145,171
57,856
94,424
2,022
11,148
81,253
1,261,746
76,179
1,198,955
452
452
11,326
5,893
5,080
353
1,188,081
276,257
106,233
382,490
805,591
68,686
¥ 736,904
Millions of
U.S. dollars
2015
$26,628
14,066
9,745
2,794
163
80
65
355
62
802
23
6,511
1,958
2,329
116
158
2,056
1,740
612
55
1,073
16,650
3,038
1,057
367
35
41
42
67
244
4
829
354
1,208
482
786
17
93
676
10,501
634
9,979
4
4
94
49
42
3
9,888
2,299
884
3,183
6,705
572
$ 6,133
010_0800801372708.indd 149
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SMFG 2015
149
SMBCSupplemental Information
(Continued)
(Consolidated Statements of Comprehensive Income)
Millions of yen
Year ended March 31
Income before minority interests ........................................................................
Other comprehensive income ............................................................................
Net unrealized gains (losses) on other securities ............................................
Net deferred gains (losses) on hedges ...........................................................
Land revaluation excess .................................................................................
Foreign currency translation adjustments .......................................................
Remeasurements of defined benefit plans .....................................................
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
2015
¥ 805,591
1,131,783
829,208
32,956
3,604
145,730
120,738
(454)
1,937,374
1,818,350
119,024
Millions of
U.S. dollars
2015
$ 6,705
9,420
6,901
274
30
1,213
1,005
(4)
16,125
15,134
991
150
010_0800801372708.indd 150
2015/08/03 11:37:38
SMFG 2015SMBCSupplemental Information
Nonconsolidated Balance Sheets (Unaudited)
Sumitomo Mitsui Banking Corporation
Millions of yen
2014
March 31
Assets:
Cash and due from banks .................................................................................... ¥ 30,133,257
Call loans ..............................................................................................................
557,619
Receivables under resale agreements .................................................................
455,595
Receivables under securities borrowing transactions ..........................................
643,127
Bills bought ..........................................................................................................
20,091
Monetary claims bought .......................................................................................
873,331
Trading assets ......................................................................................................
3,220,669
Money held in trust ...............................................................................................
2,060
Securities ..............................................................................................................
27,317,549
Loans and bills discounted ..................................................................................
63,370,678
Foreign exchanges ...............................................................................................
1,698,141
Other assets .........................................................................................................
1,298,327
Tangible fixed assets ............................................................................................
753,279
Intangible fixed assets ..........................................................................................
182,351
Prepaid pension cost ...........................................................................................
226,615
Customers’ liabilities for acceptances and guarantees .......................................
5,767,068
Reserve for possible loan losses ..........................................................................
(472,548)
Reserve for possible losses on investments ........................................................
(80,785)
Total assets .......................................................................................................... ¥135,966,434
Liabilities and net assets:
Liabilities:
Deposits ............................................................................................................... ¥ 84,137,339
Negotiable certificates of deposit ........................................................................
14,020,505
Call money ............................................................................................................
3,265,929
Payables under repurchase agreements ..............................................................
1,126,120
Payables under securities lending transactions ...................................................
3,390,533
Commercial paper ................................................................................................
1,806,866
Trading liabilities ...................................................................................................
2,400,057
Borrowed money ..................................................................................................
5,091,006
Foreign exchanges ...............................................................................................
490,873
Short-term bonds .................................................................................................
25,000
Bonds ...................................................................................................................
4,501,843
Due to trust account .............................................................................................
698,953
Other liabilities ......................................................................................................
2,071,738
Reserve for employee bonuses ............................................................................
12,112
Reserve for executive bonuses ............................................................................
610
Reserve for point service program .......................................................................
1,338
Reserve for reimbursement of deposits ...............................................................
13,650
Deferred tax liabilities ...........................................................................................
29,744
Deferred tax liabilities for land revaluation ...........................................................
37,782
Acceptances and guarantees ...............................................................................
5,767,068
Total liabilities ......................................................................................................
128,889,073
Net assets:
Capital stock ........................................................................................................
1,770,996
Capital surplus .....................................................................................................
2,481,273
Retained earnings ................................................................................................
2,137,235
Treasury stock ......................................................................................................
(210,003)
Total stockholders’ equity ...................................................................................
6,179,502
Net unrealized gains (losses) on other securities .................................................
926,836
Net deferred gains (losses) on hedges .................................................................
(53,158)
Land revaluation excess .......................................................................................
24,180
Total valuation and translation adjustments ......................................................
897,858
Total net assets ....................................................................................................
7,077,360
Total liabilities and net assets ............................................................................. ¥135,966,434
2015
¥ 37,008,665
539,916
417,473
2,012,795
—
1,047,498
3,627,862
—
29,985,267
68,274,308
1,798,843
2,460,344
812,383
200,966
293,082
6,721,131
(394,140)
(82,321)
¥154,724,079
¥ 91,337,714
14,022,064
4,579,940
350,010
5,113,896
2,551,652
2,754,739
8,096,070
1,172,969
25,000
5,095,577
717,529
3,672,970
13,738
644
1,119
19,589
444,863
34,141
6,721,131
146,725,363
1,770,996
2,481,273
2,327,186
(210,003)
6,369,453
1,726,573
(124,906)
27,593
1,629,261
7,998,715
¥154,724,079
Millions of
U.S. dollars
2015
$ 308,021
4,494
3,475
16,752
—
8,718
30,194
—
249,565
568,242
14,972
20,477
6,761
1,673
2,439
55,940
(3,280)
(685)
$1,287,758
$ 760,197
116,705
38,119
2,913
42,563
21,237
22,927
67,383
9,763
208
42,410
5,972
30,570
114
5
9
163
3,703
284
55,940
1,221,185
14,740
20,651
19,369
(1,748)
53,013
14,370
(1,040)
230
13,560
66,573
$1,287,758
010_0800801372708.indd 151
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SMFG 2015
151
SMBCSupplemental Information
Nonconsolidated Statements of Income (Unaudited)
Sumitomo Mitsui Banking Corporation
Year ended March 31
Millions of yen
2014
2015
Ordinary income ...................................................................................................
¥2,342,582
¥2,370,998
Interest income ................................................................................................
1,367,602
1,455,992
Interest on loans and discounts .................................................................
Interest and dividends on securities ..........................................................
Trust fees .........................................................................................................
Fees and commissions ...................................................................................
Trading income ................................................................................................
Other operating income ..................................................................................
Other Income...................................................................................................
945,454
334,755
1,972
513,309
37,059
142,006
280,632
990,485
356,754
1,872
517,528
12,799
194,059
188,745
Millions of
U.S. dollars
2015
$19,734
12,118
8,244
2,969
16
4,307
107
1,615
1,571
Ordinary expenses ...............................................................................................
1,390,065
1,415,005
11,777
Interest expenses ............................................................................................
Interest on deposits ...................................................................................
Fees and commissions payments ...................................................................
Trading losses .................................................................................................
Other operating expenses ...............................................................................
General and administrative expenses .............................................................
Other expenses ...............................................................................................
Ordinary profit ......................................................................................................
Extraordinary gains ...............................................................................................
Extraordinary losses .............................................................................................
Net income before taxes ......................................................................................
Income taxes - current .........................................................................................
Income taxes - deferred .......................................................................................
302,697
62,784
155,957
280
44,833
780,534
105,763
952,516
2,365
8,399
946,483
182,869
158,358
334,564
71,588
167,548
—
45,855
820,216
46,820
955,992
356
8,700
947,648
224,845
79,787
2,785
596
1,394
—
382
6,827
390
7,957
3
72
7,887
1,871
664
Net income ...........................................................................................................
¥ 605,255
¥ 643,015
$ 5,352
Per share data:
Net income ..................................................................................................
¥5,696.60
¥6,052.00
Net income (diluted) ....................................................................................
—
—
$50.37
—
Yen
2014
2015
U.S. dollars
2015
152
010_0800801372708.indd 152
2015/08/03 11:37:38
SMFG 2015SMBCSupplemental Information
Income Analysis (Consolidated)
Sumitomo Mitsui Financial Group, Inc� and Subsidiaries
Operating Income, Classified by Domestic and Overseas Operations
Year ended March 31
Domestic
operations
Interest income ����������������������������������������������������� ¥1,288,486
Interest expenses ��������������������������������������������������
254,843
Net interest income ��������������������������������������������������� 1,033,643
Trust fees �������������������������������������������������������������������
2,890
Fees and commissions �����������������������������������������
934,396
Fees and commissions payments ������������������������
92,048
842,347
Net fees and commissions ����������������������������������������
Trading income������������������������������������������������������
297,967
Trading losses �������������������������������������������������������
95,388
202,578
Net trading income ����������������������������������������������������
Other operating income ���������������������������������������� 1,106,301
Other operating expenses�������������������������������������
924,058
182,242
Net other operating income���������������������������������������
Millions of yen
2015
Overseas
operations Elimination
Total
¥707,196
209,420
497,775
—
206,274
40,906
165,367
44,531
51,990
(7,459)
253,900
155,049
98,850
¥(103,750) ¥1,891,932
386,753
1,505,178
2,890
1,126,285
129,609
996,676
252,976
57,856
195,119
1,359,109
1,078,570
280,538
(77,510)
(26,240)
—
(14,385)
(3,346)
(11,039)
(89,522)
(89,522)
—
(1,092)
(536)
(555)
Domestic
operations
¥1,337,864
256,650
1,081,214
2,472
953,323
98,250
855,072
196,441
13,067
183,373
974,229
842,022
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
¥(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
(100,864)
(425)
—
(11,767)
(1,055)
(10,712)
(30,919)
(30,919)
—
(1,112)
(390)
(721)
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.
Average Balance, Interest and Average Rate of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Average balance
Year ended March 31
Interest-earning assets ���������������������������������������������� ¥ 84,712,912
51,247,709
23,023,102
226,408
22,061
Loans and bills discounted �����������������������������������
Securities ��������������������������������������������������������������
Call loans and bills bought ������������������������������������
Receivables under resale agreements ������������������
Receivables under securities
borrowing transactions ���������������������������������������
Deposits with banks ����������������������������������������������
Lease receivables and investment assets ������������
4,745,783
792,696
1,444,682
Interest-bearing liabilities ������������������������������������������ ¥111,286,366
80,783,198
5,969,372
2,040,724
782,571
5,278,677
192,088
8,830,463
1,255,740
5,647,401
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 ��������������������������������������������������������������������
2015
Interest
¥1,288,486
861,937
297,680
1,176
48
7,826
4,942
41,751
¥ 254,843
43,595
5,375
1,503
1,314
5,036
282
76,433
1,393
113,814
Millions of yen
Average rate
1.52%
1.68
1.29
0.52
0.22
0.16
0.62
2.89
0.23%
0.05
0.09
0.07
0.17
0.10
0.15
0.87
0.11
2.02
Average balance
¥ 85,744,061
50,859,655
25,598,818
273,758
34,087
3,662,001
683,307
1,423,778
¥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
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
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 (2015, ¥22,049,623 million; 2014, ¥12,500,991
million).
011_0800804262708.indd 153
2015/08/12 11:12:48
SMFG 2015
153
SMFG Income Analysis (Consolidated)
Overseas Operations
Year ended March 31
Interest-earning assets ����������������������������������������������
Loans and bills discounted �����������������������������������
Securities ��������������������������������������������������������������
Call loans and bills bought ������������������������������������
Receivables under resale agreements ������������������
Receivables under securities
Average balance
¥36,521,313
21,676,966
3,328,456
1,046,258
921,297
borrowing transactions ���������������������������������������
Deposits with banks ����������������������������������������������
Lease receivables and investment assets ������������
—
5,918,336
400,645
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 ��������������������������������������������������������������������
¥28,006,363
13,367,188
8,945,965
925,341
1,165,238
—
2,744,976
662,081
—
58,407
2015
Interest
¥707,196
519,030
54,772
18,423
9,888
—
38,765
20,345
¥209,420
83,631
38,528
2,697
3,902
—
7,764
10,376
—
2,736
Millions of yen
Average rate
1.94%
2.39
1.65
1.76
1.07
—
0.66
5.08
0.75%
0.63
0.43
0.29
0.33
—
0.28
1.57
—
4.69
Average balance
¥30,993,810
17,432,627
2,543,975
1,195,387
491,481
—
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
Average rate
1�83%
2�36
1�75
1�40
1�58
—
0�58
4�96
0�74%
0�58
0�46
0�34
0�31
—
0�29
1�72
—
4�17
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 (2015, ¥1,519,693 million; 2014, ¥83,675
million).
Total of Domestic and Overseas Operations
Millions of yen
Average balance
Year ended March 31
Interest-earning assets ���������������������������������������������� ¥119,166,662
71,417,716
26,030,785
1,272,667
776,681
Loans and bills discounted �����������������������������������
Securities ��������������������������������������������������������������
Call loans and bills bought ������������������������������������
Receivables under resale agreements ������������������
Receivables under securities
borrowing transactions ���������������������������������������
Deposits with banks ����������������������������������������������
Lease receivables and investment assets ������������
4,745,783
6,645,194
1,845,302
Interest-bearing liabilities ������������������������������������������ ¥138,047,887
94,110,334
14,915,337
2,966,065
1,781,132
5,278,677
2,937,065
8,624,212
1,255,740
5,588,700
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 ��������������������������������������������������������������������
2015
Interest
¥1,891,932
1,312,629
336,345
19,599
9,640
7,826
43,147
62,097
¥ 386,753
126,371
43,904
4,201
4,921
5,036
8,047
34,814
1,393
110,461
Average rate
1.59%
1.84
1.29
1.54
1.24
0.16
0.65
3.37
0.28%
0.13
0.29
0.14
0.28
0.10
0.27
0.40
0.11
1.98
Average balance
¥114,688,959
66,783,840
27,798,204
1,469,146
456,907
3,662,001
6,641,939
1,777,309
¥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
2014
Interest
¥1,805,015
1,249,216
343,905
18,351
7,749
7,293
38,162
60,545
¥ 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
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 (2015, ¥23,551,730 million; 2014, ¥12,574,142
million).
154
011_0800804262708.indd 154
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SMFGSMFG 2015 Income Analysis (Consolidated)
Fees and Commissions
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 ��������������������������������������������������
Millions of yen
Domestic
operations
¥934,396
20,893
113,596
109,754
16,905
5,746
70,065
243,633
145,016
2015
Overseas
operations Elimination
Total
¥206,274
110,261
17,143
41,832
—
2
15,275
3
2,009
¥(14,385) ¥1,126,285
126,444
130,723
146,462
16,905
5,749
84,572
243,636
147,024
(4,711)
(15)
(5,124)
—
—
(768)
—
(1)
Domestic
operations
¥953,323
22,988
116,936
125,814
17,968
5,830
63,818
236,229
157,909
2014
Overseas
operations Elimination
Total
¥170,874
97,728
14,314
28,626
—
2
13,029
0
1,516
¥(11,767) ¥1,112,429
116,893
131,239
150,000
17,968
5,833
76,687
236,230
159,425
(3,823)
(10)
(4,440)
—
—
(161)
—
—
Fees and commissions payments �����������������������������
Remittances and transfers ������������������������������������
¥ 92,048
28,219
¥ 40,906
9,335
¥ (3,346) ¥ 129,609
37,318
(236)
¥ 98,250
28,658
¥ 30,644
8,135
¥ (1,055) ¥ 127,840
36,698
(95)
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
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 �������������������������������������������������������������������
2015
2014
Millions of yen
Domestic
operations
¥297,967
264,068
Overseas
operations Elimination
¥(89,522)
(14,189)
¥44,531
—
Total
¥252,976
249,878
Domestic
operations
¥196,441
172,918
Overseas
operations Elimination
¥(30,919)
(11,016)
¥46,359
—
3,054
30,691
153
95,388
—
—
95,388
—
—
44,531
—
51,990
14,189
109
37,691
—
(109)
(75,222)
—
(89,522)
(14,189)
(109)
(75,222)
—
2,944
—
153
57,856
—
—
57,856
—
20,396
2,915
210
13,067
—
—
13,067
—
—
46,359
—
17,851
11,016
118
6,716
—
(118)
(19,784)
—
(30,919)
(11,016)
(118)
(19,784)
—
Total
¥211,881
161,901
20,277
29,491
210
—
—
—
—
—
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.
011_0800804262708.indd 155
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SMFG 2015
155
SMFG 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
2015
2014
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 ������������������������������������������������������������������������������������������������������
¥ 55,897,677
24,167,542
5,724,501
85,789,720
5,705,861
¥ 91,495,582
¥ 10,243,488
4,897,880
116,829
15,258,197
8,120,036
¥ 23,378,233
¥114,873,816
¥ 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
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
2015
2014
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 �����������������������������������������������������������������������������������������������������������������
¥ 5,975,126
135,284
913,596
4,606,952
4,429,816
2,721,873
7,642,781
4,232,714
1,243,108
19,949,501
¥51,850,756
¥ 71,691
1,348,888
17,224,073
2,572,829
¥21,217,483
¥73,068,240
11.52%
0.26
1.76
8.89
8.54
5.25
14.74
8.16
2.40
38.48
100.00%
0.34%
6.36
81.18
12.12
100.00%
—
¥ 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%
—
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.
156
011_0800804262708.indd 156
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SMFGSMFG 2015 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 ������������������������������������������������������������������������������
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
Assets and Liabilities (Consolidated)
Millions of yen
Millions of yen
2015
¥387,047
283,481
719
¥671,248
¥363,585
2015
¥ 35,861
774,058
13,714
278,622
¥1,102,256
¥ 325,980
2014
¥473,159
273,629
747
¥747,536
¥511,043
2014
¥ 39,601
877,325
14,679
389,089
¥1,320,695
¥ 454,610
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
2015
¥ 152,036
727,986
294,756
1,174,779
83,475,568
¥84,650,348
¥ 363,585
Millions of yen
2014
¥ 203,581
762,276
407,473
1,373,330
77,398,976
¥78,772,307
¥ 511,043
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
011_0800804262708.indd 157
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SMFG 2015
157
SMFG Assets and Liabilities (Consolidated)
Securities
Year-End Balance
March 31
Domestic operations:
Millions of yen
2015
2014
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 �����������������������������������������������������������������������������������������������������������������
¥14,290,051
119,993
2,634,119
4,248,281
5,103,864
¥26,396,309
¥
—
—
52,548
—
3,133,532
¥ 3,186,081
¥
—
—
—
51,276
—
¥ 51,276
¥29,633,667
¥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
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 ����������������������������������������������������������� ¥6,752,166
Trading securities �������������������������������������������������� 3,057,436
Derivatives of trading securities ����������������������������
16,803
Securities related to trading transactions �������������
—
Derivatives of securities related to
2015
2014
Millions of yen
Overseas
operations Elimination
Total
¥787,124
76,279
—
—
¥(55,609) ¥7,483,681
— 3,133,716
16,803
—
—
—
Domestic
operations
¥6,350,237
3,276,722
6,462
—
Overseas
operations Elimination
Total
¥667,207
73,520
—
—
¥(60,025) ¥6,957,419
— 3,350,242
6,462
—
—
—
trading transactions ��������������������������������������������
24,343
Trading-related financial derivatives ��������������������� 3,551,598
Other trading assets����������������������������������������������
101,984
293
710,550
—
—
(55,609)
—
24,637
4,206,539
101,984
5,912
2,944,158
116,981
173
593,513
—
—
(60,025)
—
6,086
3,477,646
116,981
Trading liabilities �������������������������������������������������������� ¥5,038,136
Trading securities sold for short sales ������������������ 2,169,647
Derivatives of trading securities ����������������������������
25,816
Securities related to trading transactions
¥682,161
23,752
—
¥(55,609) ¥5,664,688
— 2,193,399
25,816
—
¥4,295,896
1,857,197
7,547
¥544,098
8,045
—
¥(60,025) ¥4,779,969
— 1,865,242
7,547
—
sold for short sales ���������������������������������������������
—
—
—
—
—
—
—
—
Derivatives of securities related to
trading transactions ��������������������������������������������
26,580
Trading-related financial derivatives ��������������������� 2,816,092
Other trading liabilities ������������������������������������������
—
298
658,109
—
—
(55,609)
—
26,878
3,418,593
—
7,332
2,423,819
—
245
535,807
—
—
(60,025)
—
7,578
2,899,601
—
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.
158
011_0800804262708.indd 158
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SMFGSMFG 2015 Capital (Nonconsolidated)
Sumitomo Mitsui Financial Group, Inc�
Change in Number of Shares Issued and Capital Stock
April 1, 2011* �������������������������������������������
Number of shares issued
Changes
(70,001)
Balances
1,414,055,625
Capital stock
Changes
—
Balances
2,337,895
Capital reserve
Changes
—
Balances
1,559,374
Millions of yen
Remarks:
* 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, 2015
Common stock ���������������������������������������������������������������������������������������������������������������������������������������������������������������
Total ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������
Number of shares issued
1,414,055,625
1,414,055,625
011_0800804262708.indd 159
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SMFG 2015
159
SMFG Capital (Nonconsolidated)
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, 2015
Japanese government and local government ������������������������������������������������������������������
Financial institutions ���������������������������������������������������������������������������������������������������������
Securities companies �������������������������������������������������������������������������������������������������������
Other institutions ��������������������������������������������������������������������������������������������������������������
Foreign institutions �����������������������������������������������������������������������������������������������������������
Foreign individuals �����������������������������������������������������������������������������������������������������������
Individuals and others ������������������������������������������������������������������������������������������������������
Total ����������������������������������������������������������������������������������������������������������������������������������
Fractional shares (shares) �������������������������������������������������������������������������������������������������
Number of
shareholders
7
342
97
7,046
1,127
253
257,878
266,750
—
Number of
units
4,774
3,874,196
560,765
1,339,857
6,877,858
2,784
1,458,537
14,118,771
2,178,525
Percentage of
total
0�03%
27�44
3�97
9�49
48�72
0�02
10�33
100�00%
—
Notes: 1. Of 3,993,337 shares in treasury stock, 39,933 units are included in “Individuals and others” and the remaining 37 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 row “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, 2015
Japan Trustee Services Bank, Ltd� (Trust Account) �������������������������������������������������������������������������������������
The Master Trust Bank of Japan, Ltd� (Trust Account) ��������������������������������������������������������������������������������
Sumitomo Mitsui Banking Corporation �������������������������������������������������������������������������������������������������������
NATSCUMCO* ���������������������������������������������������������������������������������������������������������������������������������������������
THE BANK OF NEW YORK MELLON SA/NV 10** ��������������������������������������������������������������������������������������
JP MORGAN CHASE BANK 380055*** �������������������������������������������������������������������������������������������������������
Japan Trustee Services Bank, Ltd� (Trust Account 9) ����������������������������������������������������������������������������������
CBNY-GOVERNMENT OF NORWAY**** �����������������������������������������������������������������������������������������������������
STATE STREET BANK AND TRUST COMPANY 505225***** ����������������������������������������������������������������������
STATE STREET BANK WEST CLIENT - TREATY 505234****** ��������������������������������������������������������������������
Total �������������������������������������������������������������������������������������������������������������������������������������������������������������
Number of
shares
62,360,718
55,116,000
42,820,924
32,725,584
26,405,825
25,338,302
21,712,300
19,704,600
18,109,699
16,848,201
321,142,153
Percentage of
shares outstanding
4�41%
3�89
3�02
2�31
1�86
1�79
1�53
1�39
1�28
1�19
22�71%
* Standing agent: Sumitomo Mitsui Banking Corporation
** Standing agent: The Bank of Tokyo-Mitsubishi UFJ, Ltd.
*** Standing agent: Mizuho Bank, Ltd.
**** Standing agent: Citibank Japan Ltd.
***** Standing agent: Mizuho Bank, Ltd.
****** Standing agent: Mizuho Bank, Ltd.
Notes: 1. Pursuant to Article 67 of the Enforcement Ordinance of the Companies Act, the exercise of voting rights of common shares held by Sumitomo Mitsui
Banking Corporation is restricted. Likewise, for common shares held by the bank, title in the Register of Shareholders is in the name of the bank, but 60 of
the shares listed are not substantially in the ownership of the bank.
2. Sumitomo Mitsui Trust Bank, Limited has submitted a Report of Possession of Large Volume regarding its shareholding as of July 4, 2014 and an
amendment report regarding the above-mentioned as of July 30, 2014. It stated that Sumitomo Mitsui Trust Bank, Limited and two other shareholders
hold common shares in SMFG as of June 30, 2014. But these three are not included in the above Principal Shareholders because SMFG was unable to
confirm the number of shares owned by them at the end of the fiscal year under review.
The Report of Possession of Large Volume is detailed as follows:
Principal Shareholder: Sumitomo Mitsui Trust Bank, Limited (and two other joint holders)
Number of share held: 64,652,500 shares (including joint ownership)
Shareholding ratio:
4.57%
3. BlackRock Japan Co., Ltd. has submitted a Report of Possession of Large Volume regarding its shareholding as of January 21, 2015. It stated that
BlackRock Japan Co., Ltd. and eight other shareholders hold common shares in SMFG as of January 15, 2015. But these nine are not included in the
above Principal Shareholders because SMFG was unable to confirm the number of shares owned by them at the end of the fiscal year under review.
The Report of Possession of Large Volume is detailed as follows:
Principal Shareholder: BlackRock Japan Co., Ltd. (and eight other joint holders)
Number of share held: 70,812,990 shares (including joint ownership)
Shareholding ratio:
5.01%
160
011_0800804262708.indd 160
2015/08/12 11:12:48
SMFGSMFG 2015 Capital (Nonconsolidated)
Stock Options
March 31
Number of shares granted��������������������������������������������������������������������������������������������������������
Type of stock ����������������������������������������������������������������������������������������������������������������������������
Issue price ��������������������������������������������������������������������������������������������������������������������������������
Amount capitalized when shares are issued ����������������������������������������������������������������������������
Exercise period of stock options ����������������������������������������������������������������������������������������������
2015
97,200 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 ����������������������������������������������������������������������������������������������
2015
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 ����������������������������������������������������������������������������������������������
2015
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 ����������������������������������������������������������������������������������������������
2015
115,300 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
March 31
Number of shares granted��������������������������������������������������������������������������������������������������������
Type of stock ����������������������������������������������������������������������������������������������������������������������������
Issue price ��������������������������������������������������������������������������������������������������������������������������������
Amount capitalized when shares are issued ����������������������������������������������������������������������������
Exercise period of stock options ����������������������������������������������������������������������������������������������
2015
121,800 shares
Common stock
¥3,662 per share
¥1,831 per share
From August 15, 2014 to August 14, 2044
Date of resolution: Meeting of the Board of Directors held on July 30, 2014
Common Stock Price Range
Stock Price Performance
Year ended March 31
High ���������������������������������������������������������������������������������������
Low ����������������������������������������������������������������������������������������
2015
¥4,915
3,800
2014
¥5,470
3,545
Note: Stock prices of common shares as quoted on the Tokyo Stock Exchange (First Section).
Yen
2013
¥4,255
2,231
2012
¥2,933
2,003
2011
¥3,355
2,235
Six-Month Performance
High ��������������������������������������������������������������
Low ���������������������������������������������������������������
October 2014
¥4,567�0
3,823�0
November 2014
¥4,699�0
4,350�5
Yen
December 2014
¥4,531�0
4,086�0
January 2015
¥4,349�5
3,952�0
February 2015
¥4,788�0
3,902�0
March 2015
¥4,915�0
4,560�0
Note: Stock prices of common shares as quoted on the Tokyo Stock Exchange (First Section).
011_0800804262708.indd 161
2015/08/12 11:12:48
SMFG 2015
161
SMFG 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 ����������������������������������������������������� ¥1,098,229
Interest expenses ��������������������������������������������������
238,131
Net interest income ���������������������������������������������������
860,097
Trust fees �������������������������������������������������������������������
2,795
Fees and commissions �����������������������������������������
589,311
Fees and commissions payments ������������������������
107,477
Net fees and commissions ����������������������������������������
481,834
Trading income������������������������������������������������������
280,230
Trading losses �������������������������������������������������������
95,388
Net trading income ����������������������������������������������������
184,842
Other operating income ����������������������������������������
246,129
Other operating expenses�������������������������������������
85,867
Net other operating income���������������������������������������
160,262
Millions of yen
2015
Overseas
operations Elimination
Total
¥667,869
202,461
465,407
—
206,271
40,906
165,364
44,531
51,990
(7,459)
34,401
8,946
25,455
¥(76,011) ¥1,690,086
365,074
1,325,011
2,795
782,349
145,171
637,178
235,239
57,856
177,382
279,857
94,424
185,433
(75,518)
(493)
—
(13,233)
(3,212)
(10,021)
(89,522)
(89,522)
—
(673)
(389)
(284)
Domestic
operations
¥1,154,829
227,173
927,655
2,393
619,047
114,542
504,505
173,645
13,067
160,577
190,982
88,267
102,714
2014
Overseas
operations Elimination
Total
¥539,437
157,418
382,018
—
170,873
30,644
140,228
46,359
17,851
28,508
34,612
5,869
28,742
¥(88,160) ¥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
(87,732)
(427)
—
(11,577)
(1,055)
(10,522)
(30,919)
(30,919)
—
(233)
(229)
(3)
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.
Average Balance, Interest and Average Rate of Interest-Earning Assets and Interest-Bearing Liabilities
Domestic Operations
Average balance
Year ended March 31
Interest-earning assets ���������������������������������������������� ¥ 84,231,395
52,422,192
22,967,038
226,408
22,061
Loans and bills discounted �����������������������������������
Securities ��������������������������������������������������������������
Call loans and bills bought ������������������������������������
Receivables under resale agreements ������������������
Receivables under securities
2015
Interest
¥1,098,229
711,603
297,093
1,177
48
borrowing transactions ���������������������������������������
Deposits with banks ����������������������������������������������
4,712,301
761,822
7,813
4,818
Interest-bearing liabilities ������������������������������������������ ¥109,010,312
80,981,456
6,207,049
2,040,532
782,372
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 ��������������������������������������������������������������������
5,267,621
192,088
7,529,796
430,553
5,064,906
¥ 238,131
43,657
5,536
1,503
1,314
5,029
282
77,864
433
96,844
Millions of yen
Average rate
1.30%
1.36
1.29
0.52
0.22
0.17
0.63
0.22%
0.05
0.09
0.07
0.17
0.10
0.15
1.03
0.10
1.91
Average balance
¥ 85,178,209
51,910,367
25,569,649
273,799
34,087
2014
Interest
¥1,154,829
759,725
317,429
1,582
45
3,623,081
625,160
7,266
3,068
¥100,137,796
79,237,323
5,554,290
1,497,107
1,114,596
¥ 227,173
45,019
5,864
1,221
1,125
3,122,796
196,192
4,194,658
215,910
4,699,431
3,486
329
78,827
231
87,518
Average rate
1�36%
1�46
1�24
0�58
0�13
0�20
0�49
0�23%
0�06
0�11
0�08
0�10
0�11
0�17
1�88
0�11
1�86
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 (2015, ¥21,948,242 million; 2014, ¥12,410,570
million).
162
011_0800804262708.indd 162
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SMBCSMFG 2015 Income Analysis (Consolidated)
Overseas Operations
Year ended March 31
Interest-earning assets ����������������������������������������������
Loans and bills discounted �����������������������������������
Securities ��������������������������������������������������������������
Call loans and bills bought ������������������������������������
Receivables under resale agreements ������������������
Receivables under securities
Average balance
¥35,770,885
21,538,900
2,957,732
1,046,258
921,297
borrowing transactions ���������������������������������������
Deposits with banks ����������������������������������������������
—
5,874,640
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 ��������������������������������������������������������������������
¥27,687,592
13,447,542
8,945,965
925,341
1,165,238
—
2,744,976
263,837
—
57,527
2015
Interest
¥667,869
512,068
39,150
18,423
9,888
—
38,325
¥202,461
83,859
38,528
2,697
3,902
—
7,764
4,284
—
2,736
Millions of yen
Average rate
1.87%
2.38
1.32
1.76
1.07
—
0.65
0.73%
0.62
0.43
0.29
0.33
—
0.28
1.62
—
4.76
Average balance
¥30,258,278
17,300,619
2,138,265
1,195,387
491,481
—
6,051,947
¥21,898,497
10,494,439
7,223,402
665,985
981,930
—
2,192,106
229,501
—
40,094
2014
Interest
¥539,437
413,735
27,889
16,769
7,772
—
35,174
¥157,418
61,036
33,278
2,283
3,047
—
6,276
3,381
—
1,672
Average rate
1�78%
2�39
1�30
1�40
1�58
—
0�58
0�72%
0�58
0�46
0�34
0�31
—
0�29
1�47
—
4�17
Notes: 1. Overseas operations comprise the operations of SMBC’s overseas branches and its 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 (2015, ¥1,518,716 million; 2014, ¥82,018
million).
Total of Domestic and Overseas Operations
Millions of yen
Average balance
Year ended March 31
Interest-earning assets ���������������������������������������������� ¥118,839,156
73,051,387
25,924,771
1,272,667
776,681
Loans and bills discounted �����������������������������������
Securities ��������������������������������������������������������������
Call loans and bills bought ������������������������������������
Receivables under resale agreements ������������������
Receivables under securities
2015
Interest
¥1,690,086
1,170,833
335,694
19,600
9,640
borrowing transactions ���������������������������������������
Deposits with banks ����������������������������������������������
4,712,301
6,556,848
7,813
42,649
Interest-bearing liabilities ������������������������������������������ ¥135,572,201
94,391,674
15,153,014
2,965,873
1,780,933
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 ��������������������������������������������������������������������
5,267,621
2,937,065
6,924,199
430,553
5,122,433
¥ 365,074
126,966
44,065
4,200
4,921
5,029
8,047
29,312
433
99,581
Average rate
1.42%
1.60
1.29
1.54
1.24
0.17
0.65
0.27%
0.13
0.29
0.14
0.28
0.10
0.27
0.42
0.10
1.94
Average balance
¥114,068,822
68,042,417
27,707,915
1,469,187
456,907
2014
Interest
¥1,606,106
1,107,862
344,851
18,351
7,749
3,623,081
6,560,395
7,266
37,798
¥120,671,195
89,612,608
12,777,692
2,163,092
2,027,865
¥ 296,859
105,561
39,142
3,505
4,105
3,122,796
2,388,298
3,255,502
215,910
4,739,525
3,486
6,606
16,622
231
89,190
Average rate
1�41%
1�63
1�24
1�25
1�70
0�20
0�58
0�25%
0�12
0�31
0�16
0�20
0�11
0�28
0�51
0�11
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 (2015, ¥23,464,258 million; 2014, ¥12,492,218
million).
011_0800804262708.indd 163
2015/08/12 11:12:49
SMFG 2015
163
SMBC Income Analysis (Consolidated)
Fees and Commissions
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 ��������������������������������������������������
Millions of yen
Domestic
operations
¥589,311
20,902
114,823
95,244
15,605
5,746
36,373
6,536
128,829
2015
Overseas
operations Elimination
¥(13,233)
(4,413)
(1)
(5,124)
—
—
(211)
—
(1)
¥206,271
110,261
17,143
41,832
—
2
15,275
—
2,009
Total
¥782,349
126,751
131,965
131,952
15,605
5,749
51,438
6,536
130,837
Domestic
operations
¥619,047
23,013
118,482
105,758
16,596
5,830
36,965
6,745
144,090
2014
Overseas
operations Elimination
¥(11,577)
(3,810)
(1)
(4,440)
—
—
(155)
—
—
¥170,873
97,728
14,314
28,626
—
2
13,029
—
1,516
Total
¥778,343
116,931
132,795
129,944
16,596
5,833
49,839
6,745
145,607
Fees and commissions payments �����������������������������
Remittances and transfers ������������������������������������
¥107,477
28,219
¥ 40,906
9,335
¥ (3,212)
(236)
¥145,171
37,318
¥114,542
28,658
¥ 30,644
8,135
¥ (1,055)
(95)
¥144,131
36,698
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
Year ended March 31
Trading income ����������������������������������������������������������
Gains on trading securities �����������������������������������
Gains on securities related to
2015
2014
Millions of yen
Domestic
operations
¥280,230
246,331
Overseas
operations Elimination
¥(89,522)
(14,189)
¥44,531
—
Total
¥235,239
232,141
Domestic
operations
¥173,645
150,121
Overseas
operations Elimination
¥(30,919)
(11,016)
¥46,359
—
Total
¥189,085
139,105
trading transactions ��������������������������������������������
Gains on trading-related financial derivatives �������
Others �������������������������������������������������������������������
3,054
30,691
153
—
44,531
—
(109)
(75,222)
—
2,944
—
153
20,396
2,915
210
—
46,359
—
(118)
(19,784)
—
20,277
29,491
210
Trading losses������������������������������������������������������������
Losses on trading securities ���������������������������������
Losses on securities related to
¥ 95,388
—
¥51,990
14,189
¥(89,522)
(14,189)
¥ 57,856
—
¥ 13,067
—
¥17,851
11,016
¥(30,919)
(11,016)
¥
trading transactions ��������������������������������������������
Losses on trading-related financial derivatives �����
Others �������������������������������������������������������������������
—
95,388
—
109
37,691
—
(109)
(75,222)
—
—
57,856
—
—
13,067
—
118
6,716
—
(118)
(19,784)
—
—
—
—
—
—
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.
164
011_0800804262708.indd 164
2015/08/12 11:12:49
SMBCSMFG 2015 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
2015
2014
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 ������������������������������������������������������������������������������������������������������
¥ 56,265,737
24,177,202
5,731,119
86,174,059
5,912,761
¥ 92,086,821
¥ 10,296,949
4,916,051
116,829
15,329,830
8,120,036
¥ 23,449,866
¥115,536,687
¥ 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
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
2015
2014
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 �����������������������������������������������������������������������������������������������������������������
¥ 5,968,319
134,045
913,596
4,588,546
4,423,655
5,387,024
7,770,408
4,214,981
1,243,108
18,742,690
¥53,386,375
¥ 71,691
1,354,146
17,805,942
2,501,409
¥21,733,190
¥75,119,565
11.18%
0.25
1.71
8.59
8.29
10.09
14.55
7.90
2.33
35.11
100.00%
0.33%
6.23
81.93
11.51
100.00%
—
¥ 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
¥ 78,915
1,092,827
14,202,756
2,024,296
¥17,398,795
¥69,754,391
11�34%
0�31
1�71
8�74
8�15
9�58
14�21
8�12
2�23
35�61
100�00%
0�45%
6�28
81�63
11�64
100�00%
—
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. Japan offshore banking accounts are included in overseas operations’ accounts.
011_0800804262708.indd 165
2015/08/12 11:12:49
SMFG 2015
165
SMBC Assets and Liabilities (Consolidated)
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
2015
¥ 35,630
710,773
6,071
224,707
¥977,183
¥307,412
Millions of yen
2014
¥ 38,949
788,485
7,546
331,782
¥1,166,764
¥ 422,009
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
2015
2014
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 �������������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
¥14,290,030
119,993
2,634,819
4,337,096
4,991,120
¥26,373,060
¥
—
—
52,548
—
3,133,725
¥ 3,186,274
¥29,559,334
¥14,242,373
227,128
2,939,730
3,434,174
3,267,922
¥24,111,328
¥
—
—
—
—
2,981,044
¥ 2,981,044
¥27,092,373
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. “Others” include foreign bonds and foreign stocks.
Trading Assets and Liabilities
Domestic
March 31
operations
Trading assets ����������������������������������������������������������� ¥6,633,222
Trading securities �������������������������������������������������� 2,938,860
Derivatives of trading securities ����������������������������
16,429
Securities related to trading transactions �������������
—
Derivatives of securities related to
2015
2014
Millions of yen
Overseas
operations Elimination
Total
¥787,375
76,279
—
—
¥(55,609) ¥7,364,988
— 3,015,139
16,429
—
—
—
Domestic
operations
¥6,238,736
3,163,102
6,437
—
Overseas
operations Elimination
Total
¥668,018
73,520
—
—
¥(60,025) ¥6,846,729
— 3,236,622
6,437
—
—
—
trading transactions ��������������������������������������������
24,343
Trading-related financial derivatives ��������������������� 3,551,604
Other trading assets����������������������������������������������
101,984
293
710,801
—
—
(55,609)
—
24,637
4,206,797
101,984
5,912
2,946,302
116,981
173
594,324
—
—
(60,025)
—
6,086
3,480,601
116,981
Trading liabilities �������������������������������������������������������� ¥5,009,602
Trading securities sold for short sales ������������������ 2,141,153
Derivatives of trading securities ����������������������������
25,770
Securities related to trading transactions
¥682,412
23,752
—
¥(55,609) ¥5,636,406
— 2,164,905
25,770
—
¥4,255,600
1,815,126
7,178
¥544,909
8,045
—
¥(60,025) ¥4,740,484
— 1,823,171
7,178
—
sold for short sales ���������������������������������������������
—
—
—
—
—
—
—
—
Derivatives of securities related to
trading transactions ��������������������������������������������
26,580
Trading-related financial derivatives ��������������������� 2,816,098
Other trading liabilities ������������������������������������������
—
298
658,361
—
—
(55,609)
—
26,878
3,418,850
—
7,332
2,425,963
—
245
536,618
—
—
(60,025)
—
7,578
2,902,555
—
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.
166
011_0800804262708.indd 166
2015/08/12 11:12:49
SMBCSMFG 2015 Income Analysis (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Gross Banking Profit, Classified by Domestic and International Operations
Year ended March 31
Domestic
operations
Interest income ������������������������������������������� ¥ 926,308
2015
International
operations
¥542,110
Interest expenses ���������������������������������������
62,770
284,220
Net interest income ����������������������������������������
863,538
Trust fees ��������������������������������������������������������
1,841
Fees and commissions �������������������������������
337,140
Fees and commissions payments ��������������
121,569
Net fees and commissions �����������������������������
215,570
Trading income �������������������������������������������
3,380
Trading losses ���������������������������������������������
—
Net trading income �����������������������������������������
3,380
Other operating income ������������������������������
27,321
Other operating expenses ��������������������������
13,928
Net other operating income����������������������������
13,393
Gross banking profit ��������������������������������������� ¥1,097,724
Gross banking profit rate (%) �������������������������
1.55%
257,890
31
180,387
45,978
134,409
9,418
—
9,418
166,738
31,927
134,810
¥536,560
Millions of yen
Total
¥1,455,992
[12,426]
334,564
[12,426]
1,121,428
1,872
517,528
167,548
349,979
12,799
—
12,799
194,059
45,855
148,204
¥1,634,284
Domestic
operations
¥ 948,945
2014
International
operations
¥441,597
68,297
257,338
880,647
1,945
350,020
119,579
230,441
206
280
(73)
24,886
25,839
(952)
¥1,112,008
184,258
27
163,288
36,377
126,910
36,852
—
36,852
117,475
19,349
98,125
¥446,175
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
1.41%
1.56%
1�53%
1�42%
1�55%
Notes: 1. Domestic operations include yen-denominated transactions by domestic branches, while international operations include foreign-currency-denominated
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) 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) 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
Year ended March 31
Average balance
Interest-earning assets ����������������������������������� ¥70,641,557
[4,225,764]
45,297,845
20,185,808
99,639
—
Loans and bills discounted �������������������������
Securities ����������������������������������������������������
Call loans ����������������������������������������������������
Receivables under resale agreements ��������
Receivables under securities
borrowing transactions �����������������������������
Bills bought �������������������������������������������������
Deposits with banks �����������������������������������
456,748
14,850
7,757
Interest-bearing liabilities ������������������������������� ¥87,716,915
70,404,105
6,486,838
1,398,849
53,749
Deposits������������������������������������������������������
Negotiable certificates of deposit ���������������
Call money ��������������������������������������������������
Payables under repurchase agreements ����
Payables under securities
lending transactions ���������������������������������
Borrowed money ����������������������������������������
Short-term bonds ���������������������������������������
Bonds ���������������������������������������������������������
1,767,038
4,946,776
24,999
1,824,687
Millions of yen
2015
Interest
¥926,308
[12,426]
593,408
289,726
259
—
957
390
1
¥ 62,770
23,868
5,788
683
47
961
10,570
17
19,811
Average rate
1.31%
1.31
1.43
0.26
—
0.20
2.62
0.01
0.07%
0.03
0.08
0.04
0.08
0.05
0.21
0.07
1.08
Average balance
¥72,442,213
[3,577,815]
45,370,735
22,616,380
69,790
—
420,070
28,469
6,699
¥80,855,505
68,817,306
5,847,365
973,696
37,359
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
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2015, ¥20,982,578 million; 2014, ¥11,857,804
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). “Interest-bearing liabilities” are shown after deduction of
amounts equivalent to the average balance of money held in trust (2014, ¥2,269 million) and corresponding interest (2014, ¥1 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.
011_0800804262708.indd 167
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SMFG 2015
167
SMBC Income Analysis (Nonconsolidated)
International Operations
Year ended March 31
Average balance
Interest-earning assets ����������������������������������� ¥37,906,621
20,797,386
6,338,457
369,455
412,957
Loans and bills discounted �������������������������
Securities ����������������������������������������������������
Call loans ����������������������������������������������������
Receivables under resale agreements ��������
Receivables under securities
borrowing transactions �����������������������������
Deposits with banks �����������������������������������
294,806
6,538,186
Interest-bearing liabilities ������������������������������� ¥36,790,634
[4,225,764]
13,603,482
8,671,748
608,136
1,260,612
Deposits������������������������������������������������������
Negotiable certificates of deposit ���������������
Call money ��������������������������������������������������
Payables under repurchase agreements ����
Payables under securities
lending transactions ���������������������������������
Borrowed money ����������������������������������������
Bonds ���������������������������������������������������������
904,212
1,987,396
2,795,189
2015
Interest
¥542,110
397,077
67,027
5,272
4,760
1,407
27,241
¥284,220
[12,426]
47,719
37,351
1,947
3,248
1,592
66,250
74,317
Millions of yen
Average rate
1.43%
1.90
1.05
1.42
1.15
Average balance
¥31,405,213
16,584,726
5,710,389
390,688
332,774
2014
Interest
¥441,597
307,966
66,671
4,675
4,646
Average rate
1�40%
1�85
1�16
1�19
1�39
0.47
0.41
0.77%
0.35
0.43
0.32
0.25
0.17
3.33
2.65
197,496
5,670,327
895
23,786
¥30,729,027
[3,577,815]
11,261,215
6,983,225
594,332
1,321,602
¥257,338
[22,941]
36,375
32,301
1,879
3,081
772,910
1,970,189
2,101,155
1,201
71,238
58,142
0�45
0�41
0�83%
0�32
0�46
0�31
0�23
0�15
3�61
2�76
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2015, ¥93,568 million; 2014, ¥60,515 million).
2. 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.
3. The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly current
method, under which the TT middle rate at the end of the previous month is applied to nonexchange transactions of the month concerned.
Total of Domestic and International Operations
Year ended March 31
Average balance
Interest-earning assets ����������������������������������� ¥104,322,413
66,095,232
26,524,265
469,094
412,957
Loans and bills discounted �������������������������
Securities ����������������������������������������������������
Call loans ����������������������������������������������������
Receivables under resale agreements ��������
Receivables under securities
borrowing transactions �����������������������������
Bills bought �������������������������������������������������
Deposits with banks �����������������������������������
751,554
14,850
6,545,943
Interest-bearing liabilities ������������������������������� ¥120,281,785
84,007,587
15,158,586
2,006,986
1,314,362
Deposits������������������������������������������������������
Negotiable certificates of deposit ���������������
Call money ��������������������������������������������������
Payables under repurchase agreements ����
Payables under securities
lending transactions ���������������������������������
Borrowed money ����������������������������������������
Short-term bonds ���������������������������������������
Bonds ���������������������������������������������������������
2,671,250
6,934,173
24,999
4,619,876
2015
Interest
¥1,455,992
990,485
356,754
5,532
4,760
2,365
390
27,242
¥ 334,564
71,588
43,140
2,630
3,295
2,554
76,821
17
94,128
Millions of yen
Average rate
1.39%
1.49
1.34
1.17
1.15
Average balance
¥100,269,611
61,955,462
28,326,769
460,479
332,774
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
0.31
2.62
0.41
0.27%
0.08
0.28
0.13
0.25
0.09
1.10
0.07
2.03
617,566
28,469
5,677,026
1,918
764
23,788
¥108,006,718
80,078,521
12,830,590
1,568,029
1,358,961
¥ 302,695
62,784
38,536
2,370
3,117
1,341,979
3,553,356
23,819
4,373,580
1,557
78,361
16
84,690
0�31
2�68
0�41
0�28%
0�07
0�30
0�15
0�22
0�11
2�20
0�07
1�93
Notes: 1. “Interest-earning assets” are shown after deduction of the average balance of noninterest-earning deposits (2015, ¥21,076,146 million; 2014, ¥11,918,319
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). “Interest-bearing liabilities” are shown after deduction of
amounts equivalent to the average balance of money held in trust (2014, ¥2,269 million) and corresponding interest (2014, ¥1 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.
168
011_0800804262708.indd 168
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SMBCSMFG 2015 Income Analysis (Nonconsolidated)
Breakdown of Interest Income and Interest Expenses
Domestic 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 ���������������������������������������������������������
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)
¥(23,587)
(1,022)
(28,810)
77
—
76
(358)
0
¥ 4,910
538
570
207
14
651
7,187
0
(4,958)
Volume-related
increase
(decrease)
¥92,859
80,210
6,641
(254)
924
462
3,615
¥46,828
8,026
7,272
44
(142)
219
573
18,452
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)
¥56,094
62,037
(21,301)
92
924
421
(358)
3,616
¥34,143
3,177
6,625
575
(102)
1,270
37,454
0
4,898
2015
Rate-related
increase
(decrease)
¥ 950
(43,057)
50,454
(34)
—
(142)
(15)
0
¥(10,437)
(3,078)
(1,016)
(15)
(2)
(46)
(3,740)
(0)
(1,778)
2015
Rate-related
increase
(decrease)
¥ 7,653
8,900
(6,285)
850
(810)
Millions of yen
Net
increase
(decrease)
¥(22,636)
(44,080)
21,643
43
—
(66)
(374)
0
¥ (5,527)
(2,540)
(445)
192
11
605
3,447
0
(6,736)
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)
Millions of yen
Net
increase
(decrease)
¥100,512
89,111
356
596
114
Volume-related
increase
(decrease)
¥68,080
53,179
(5,079)
(315)
1,127
50
(161)
512
3,454
406
6,741
¥45,970
7,607
9,248
161
(93)
(1,707)
1,785
17,452
¥ 26,881
11,344
5,049
67
166
391
(4,987)
16,175
Millions of yen
Net
increase
(decrease)
¥88,390
45,031
21,999
639
114
446
(374)
3,454
¥31,869
8,803
4,603
260
178
996
(1,540)
0
9,438
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
¥(19,946)
3,318
(2,223)
23
309
171
(5,561)
(2,277)
2015
Rate-related
increase
(decrease)
¥ 32,295
(17,006)
43,300
547
(810)
25
(15)
(161)
¥ (2,274)
5,626
(2,021)
(315)
281
(274)
(38,995)
(0)
4,539
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
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)
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
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
Note: Volume/rate variance is prorated according to changes in volume and rate.
SMFG 2015
169
011_0800804262708.indd 169
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SMBC
Income Analysis (Nonconsolidated)
Fees and Commissions
Year ended March 31
Fees and commissions �����������������������������������
Deposits and loans �������������������������������������
Remittances and transfers �������������������������
Securities-related business ������������������������
Agency ��������������������������������������������������������
Safe deposits ����������������������������������������������
Guarantees �������������������������������������������������
Millions of yen
Domestic
operations
¥337,140
11,806
91,204
12,485
11,955
5,325
17,212
2015
International
operations
¥180,387
96,126
34,602
2,620
—
—
22,160
Total
¥517,528
107,933
125,806
15,105
11,955
5,325
39,373
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
Total
¥513,309
99,771
122,168
14,181
12,767
5,404
37,471
Fees and commissions payments ������������������
Remittances and transfers �������������������������
¥121,569
22,532
¥ 45,978
13,505
¥167,548
36,037
¥119,579
22,037
¥ 36,377
11,739
¥155,957
33,777
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
¥3,380
3,227
2015
International
operations
¥9,418
—
—
—
153
¥ —
—
—
—
—
2,944
6,474
—
¥ —
—
—
—
—
Total
¥12,799
3,227
2,944
6,474
153
¥ —
—
—
—
—
Domestic
operations
¥206
—
2014
International
operations
¥36,852
—
Total
¥37,059
—
—
—
206
¥280
280
—
—
—
20,277
20,277
16,570
3
¥ —
—
—
—
—
16,570
210
¥
280
280
—
—
—
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
¥13,393
3,341
(3,596)
—
2015
International
operations
¥134,810
44,558
(16,342)
107,262
Total
¥148,204
47,899
(19,939)
107,262
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
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 �����������������������������������������������������������������������������������������������������������������
2015
¥270,814
4,162
42,902
82,976
64,934
5,405
5,202
5,757
6,005
7,117
12,522
42,859
49,063
191,487
¥791,211
Millions of yen
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
170
011_0800804262708.indd 170
2015/08/12 11:12:49
SMBCSMFG 2015 Deposits (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Deposits and Negotiable Certificates of Deposit
Year-End Balance
March 31
Domestic operations:
Millions of yen
2015
2014
Liquid deposits ��������������������������������������������������������������������������������������������
Fixed-term deposits ������������������������������������������������������������������������������������
Others ����������������������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
Negotiable certificates of deposit ����������������������������������������������������������������
Total �������������������������������������������������������������������������������������������������������������
International operations:
Liquid deposits ��������������������������������������������������������������������������������������������
Fixed-term deposits ������������������������������������������������������������������������������������
Others ����������������������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
Negotiable certificates of deposit ����������������������������������������������������������������
Total �������������������������������������������������������������������������������������������������������������
Grand total ������������������������������������������������������������������������������������������������������
¥ 53,460,725
20,328,986
1,424,917
75,214,629
6,186,789
¥ 81,401,419
¥ 8,026,383
3,743,876
4,352,824
16,123,085
7,835,274
¥ 23,958,359
¥105,359,778
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
2. Fixed-term deposits = Time deposits + Installment savings
65.7%
25.0
1.7
92.4
7.6
100.0%
33.5%
15.6
18.2
67.3
32.7
100.0%
—
¥50,668,662
20,165,417
1,231,639
72,065,720
6,009,098
¥78,074,818
¥ 6,171,074
2,184,444
3,716,100
12,071,618
8,011,407
¥20,083,026
¥98,157,844
64�9%
25�8
1�6
92�3
7�7
100�0%
30�7%
10�9
18�5
60�1
39�9
100�0%
—
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2015
2014
Liquid deposits ��������������������������������������������������������������������������������������������
Fixed-term deposits ������������������������������������������������������������������������������������
Others ����������������������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
Negotiable certificates of deposit ����������������������������������������������������������������
Total �������������������������������������������������������������������������������������������������������������
International operations:
Liquid deposits ��������������������������������������������������������������������������������������������
Fixed-term deposits ������������������������������������������������������������������������������������
Others ����������������������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
Negotiable certificates of deposit ����������������������������������������������������������������
Total �������������������������������������������������������������������������������������������������������������
Grand total ������������������������������������������������������������������������������������������������������
¥49,585,981
20,305,098
513,025
70,404,105
6,486,838
¥76,890,943
¥ 7,022,248
2,599,982
3,981,250
13,603,482
8,671,748
¥22,275,230
¥99,166,173
¥47,384,674
20,929,837
502,794
68,817,306
5,847,365
¥74,664,671
¥ 5,941,383
1,878,532
3,441,299
11,261,215
6,983,225
¥18,244,440
¥92,909,112
Notes: 1. Liquid deposits = Current deposits + Ordinary deposits + Savings deposits + Deposits at notice
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 �����������������������������������������������������������������������������������������������������������������
2015
¥41,768,103
36,020,995
¥77,789,098
53.7%
46.3
100.0%
2014
¥40,159,579
34,493,475
¥74,653,054
53�8%
46�2
100�0%
Millions of yen
Note: The figures above exclude negotiable certificates of deposit and Japan offshore banking accounts.
011_0800804262708.indd 171
2015/08/12 11:12:49
SMFG 2015
171
SMBC Deposits (Nonconsolidated)
Balance of Investment Trusts, Classified by Type of Customer
March 31
Individual ���������������������������������������������������������������������������������������������������������
Corporate ��������������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
2015
¥2,689,700
390,369
¥3,080,069
2014
¥2,893,374
352,831
¥3,246,205
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.
Millions of yen
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.
2015
¥ 9,789,514
6,780,000
71,389
2,938,125
4,302,602
3,755,675
180,469
366,457
5,467,537
5,195,839
125,714
145,983
1,822,536
1,719,362
79,026
24,146
1,221,641
977,282
26,424
217,934
1,468,992
666,721
796,859
5,412
¥24,072,824
19,094,881
1,279,883
3,698,059
Millions of yen
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
172
011_0800804262708.indd 172
2015/08/12 11:12:49
SMBCSMFG 2015 Loans (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Balance of Loans and Bills Discounted
Year-End Balance
March 31
Domestic operations:
Millions of yen
2015
2014
Loans on notes ��������������������������������������������������������������������������������������������
Loans on deeds �������������������������������������������������������������������������������������������
Overdrafts ����������������������������������������������������������������������������������������������������
Bills discounted �������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
International operations:
Loans on notes ��������������������������������������������������������������������������������������������
Loans on deeds �������������������������������������������������������������������������������������������
Overdrafts ����������������������������������������������������������������������������������������������������
Bills discounted �������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
¥ 675,286
35,669,028
9,704,976
106,324
¥46,155,615
¥ 1,127,209
20,845,536
145,946
—
¥22,118,693
¥68,274,308
¥ 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
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2015
2014
Loans on notes ��������������������������������������������������������������������������������������������
Loans on deeds �������������������������������������������������������������������������������������������
Overdrafts ����������������������������������������������������������������������������������������������������
Bills discounted �������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
International operations:
Loans on notes ��������������������������������������������������������������������������������������������
Loans on deeds �������������������������������������������������������������������������������������������
Overdrafts ����������������������������������������������������������������������������������������������������
Bills discounted �������������������������������������������������������������������������������������������
Subtotal �������������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
¥ 739,344
35,366,084
9,090,851
101,565
¥45,297,845
¥ 1,139,269
19,492,102
166,013
—
¥20,797,386
¥66,095,232
¥ 862,023
35,667,404
8,730,765
108,502
¥45,370,735
¥ 860,604
15,562,953
161,169
—
¥16,584,726
¥61,955,462
Note: The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly current
method.
Balance of Loans and Bills Discounted, Classified by Purpose
March 31
Funds for capital investment ���������������������������������������������������������������������������
Funds for working capital ��������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
2015
¥21,002,318
47,271,990
¥68,274,308
30.8%
69.2
100.0%
2014
¥20,854,059
42,516,619
¥63,370,678
32�9%
67�1
100�0%
Millions of yen
Balance of Loans and Bills Discounted, Classified by Collateral
Millions of yen
March 31
Securities ���������������������������������������������������������������������������������������������������������
Commercial claims ������������������������������������������������������������������������������������������
Commercial goods ������������������������������������������������������������������������������������������
Real estate �������������������������������������������������������������������������������������������������������
Others ��������������������������������������������������������������������������������������������������������������
Subtotal �����������������������������������������������������������������������������������������������������������
Guaranteed ������������������������������������������������������������������������������������������������������
Unsecured �������������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
2015
¥ 614,963
1,096,237
—
6,579,256
1,260,709
9,551,166
23,562,770
35,160,371
¥68,274,308
2014
¥ 625,687
1,056,461
—
6,545,000
1,069,055
9,296,206
22,888,977
31,185,495
¥63,370,678
011_0800804262708.indd 173
2015/08/12 11:12:49
SMFG 2015
173
SMBC Loans (Nonconsolidated)
Balance of Loans and Bills Discounted, Classified by Maturity
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.
2015
¥10,629,695
10,834,296
8,580,386
2,253,910
11,700,384
9,349,175
2,351,208
5,030,127
4,314,552
715,574
20,228,880
19,038,738
1,190,142
9,850,923
9,850,923
—
¥68,274,308
Millions of yen
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
Balance of Loan Portfolio, Classified by Industry
March 31
Domestic operations:
Millions of yen
2015
2014
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 �����������������������������������������������������������������������������������������������������������������
¥ 5,622,478
129,596
713,769
4,322,866
4,015,619
7,284,507
6,524,281
3,634,027
1,070,825
16,028,577
¥49,346,549
¥ 52,598
1,557,891
15,603,083
1,714,185
¥18,927,759
¥68,274,308
11.4%
0.3
1.4
8.8
8.1
14.8
13.2
7.4
2.2
32.4
100.0%
0.3%
8.2
82.4
9.1
100.0%
—
¥ 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
¥ 45,614
1,252,313
12,497,387
1,384,040
¥15,179,355
¥63,370,678
11�6%
0�3
1�5
9�0
8�0
14�0
12�9
7�6
2�1
33�0
100�0%
0�3%
8�3
82�3
9�1
100�0%
—
Notes: 1. Domestic operations comprise the operations of SMBC (excluding overseas branches). Overseas operations comprise the operations of SMBC’s overseas
branches.
2. Japan offshore banking accounts are included in overseas operations’ accounts.
Loans to Individuals/Small and Medium-Sized Enterprises
March 31
Total domestic loans (A) ����������������������������������������������������������������������������������
Loans to individuals, and small and medium-sized enterprises (B) ����������������
(B) / (A) �������������������������������������������������������������������������������������������������������������
2015
¥49,346,549
33,498,552
67.9%
2014
¥48,191,322
33,090,555
68�7%
Millions of yen
Notes: 1. The figures above exclude the outstanding balance of loans at overseas branches and of Japan offshore banking accounts.
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.)
174
011_0800804262708.indd 174
2015/08/12 11:12:49
SMBCSMFG 2015 Loans (Nonconsolidated)
Consumer Loans Outstanding
March 31
Consumer loans ����������������������������������������������������������������������������������������������
Housing loans ����������������������������������������������������������������������������������������������
Residential purpose ���������������������������������������������������������������������������������
Others ����������������������������������������������������������������������������������������������������������
2015
¥14,347,459
13,437,910
10,788,338
909,548
2014
¥14,722,233
13,841,388
11,089,976
880,844
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, 2015
General reserve for possible loan losses������������������
Balance at beginning
of the fiscal year
¥322,558
Increase during
the fiscal year
¥231,030
Decrease during the fiscal year
Objectives
¥ —
Others
¥322,558*
Balance at end
of the fiscal year
¥231,030
Millions of yen
Specific reserve for possible loan losses �����������������
For nonresident loans �������������������������������������������
Loan loss reserve for specific overseas countries ���
Total ��������������������������������������������������������������������������
[(9,782)]
159,423
[(397)]
32,106
[(394)]
747
¥482,729
[(10,180)]
162,390
9,579
149,843*
162,390
37,099
24
32,082*
37,099
719
¥394,140
—
¥9,579
747*
¥473,149
719
¥394,140
* Transfer from reserves by reversal or origination method
Note: Figures in brackets [ ] indicate foreign exchange translation adjustments.
Year ended March 31, 2014
General reserve for possible loan losses������������������
Balance at beginning
of the fiscal year
¥379,403
Increase during
the fiscal year
¥312,775
Decrease during the fiscal year
Objectives
¥ —
Others
¥379,403*
Balance at end
of the fiscal year
¥312,775
Millions of yen
Specific reserve for possible loan losses �����������������
For nonresident loans �������������������������������������������
Loan loss reserve for specific overseas countries ���
Total ��������������������������������������������������������������������������
[(4,241)]
242,152
[(725)]
66,198
[(699)]
5
¥621,560
[(4,966)]
* Transfer from reserves by reversal or origination method
Note: Figures in brackets [ ] indicate foreign exchange translation adjustments.
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
Write-Off of Loans
Year ended March 31
Write-off of loans ���������������������������������������������������������������������������������������������
2015
¥417
2014
¥4,520
Millions of yen
Note: Write-off of loans include amount of direct reduction.
Specific Overseas Loans
March 31
Egypt ���������������������������������������������������������������������������������������������������������������
Cyprus �������������������������������������������������������������������������������������������������������������
Argentina ���������������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
Ratio of the total amounts to total assets �������������������������������������������������������
Number of countries ����������������������������������������������������������������������������������������
2015
¥11,552
—
5
¥11,557
0.00%
2
2014
¥10,999
55
5
¥11,060
0�00%
3
Millions of yen
011_0800804262708.indd 175
2015/08/12 11:12:50
SMFG 2015
175
SMBC Loans (Nonconsolidated)
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
2015
¥ 30,122
552,933
4,932
115,919
¥703,907
¥149,442
Millions of yen
2014
¥ 29,827
614,678
6,520
186,194
¥837,221
¥231,407
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
2015
¥ 92,996
555,150
120,851
768,998
78,132,366
¥78,901,365
¥ 160,661
Millions of yen
2014
¥ 114,268
574,429
192,715
881,413
71,907,016
¥72,788,430
¥ 255,268
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
176
011_0800804262708.indd 176
2015/08/12 11:12:50
SMBCSMFG 2015 Classification under Self-Assessment, Disclosure of Problem Assets, and Write-Offs/Reserves
Loans (Nonconsolidated)
Problem assets based on
the Financial Reconstruction Act
Classification under self-assessment
I
Classification 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
¥93.0
¥87.7
¥5.3
Direct
write-offs
(Note 1)
¥7.5
(Note 2)
100%
(Note 3)
March 31, 2015
Category of
borrowers under
self-assessment
Bankrupt Borrowers
Effectively Bankrupt
Borrowers
Potentially
Bankrupt
Borrowers
Borrowers
Requiring
Caution
Doubtful assets (2)
¥555.1
Substandard loans (3)
¥120.9
(Claims to substandard borrowers)
Normal Borrowers
Normal assets
¥78,132.4
NPL ratio (A) / (4)
0.97%
(Note 5)
Total
(4)
¥78,901.4
(A) = (1) + (2) + (3)
¥769.0
Portion of claims secured by
collateral or guarantees, etc. (6)
¥348.3
Necessary
amount
reserved
¥206.8
Portion of substandard loans
secured by collateral or
guarantees, etc. (7)
¥44.9
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)
¥480.9
Unsecured portion
(D) = ( A ) – (C)
Specific
reserve
General
reserve
¥154.1
(Note 2)
74.48%
(Note 3)
General reserve
for substandard
loans ¥31.7
¥231.8
(Note 6)
¥0.7
¥394.1
¥193.3
¥288.1
13.24%
(Note 3)
41.76%
(Note 3)
4.16%
9.68%
(Note 4)
[
]
0.14%
(Note 4)
Reserve ratio
(B) / (D)
67.10%
(Note 7)
Coverage ratio { ( B) + (C) } / (A)
87.67%
Notes: 1. Includes amount of direct reduction totaling ¥160.7 billion.
2. Includes reserves for assets that are not subject to disclosure under the Financial Reconstruction Act. (Bankrupt/Effectively Bankrupt Borrowers: ¥2.2
billion; Potentially Bankrupt Borrowers: ¥4.3 billion)
3. Reserve ratios for claims on Bankrupt/Effectively Bankrupt Borrowers, Potentially Bankrupt Borrowers, Substandard Borrowers, and Borrowers Requiring
Caution: The proportion of each category’s total unsecured claims covered by reserve for possible loan losses.
4. Reserve ratios for claims on Normal Borrowers and Borrowers Requiring Caution (excluding claims to Substandard Borrowers): The proportion of each
category’s total claims covered by reserve for possible loan losses. The reserve ratio for unsecured claims on Borrowers Requiring Caution (excluding
claims to Substandard Borrowers) is shown in brackets.
5. Ratio of problem assets to total assets subject to the Financial Reconstruction Act.
6. Includes Specific reserve for Borrowers Requiring Caution totaling ¥0.8 billion.
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, 2013
➀
¥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
➁
¥114�3
574�4
¥688�7
Fiscal 2014
New occurrences Off-balanced
¥ (44�6)
(186�6)
¥(231�2)
¥ 23�3
167�3
¥190�6
March 31, 2015
➂
¥ 93�0
555�1
¥648�1
Billions of yen
Bankrupt and quasi-bankrupt assets ���
Doubtful assets ������������������������������������
Total ������������������������������������������������������
Increase/
Decrease
➁ – ➀
¥ (31�2)
(117�0)
¥(148�2)
Increase/
Decrease
➂ – ➁
¥(21�3)
(19�3)
¥(40�6)
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,
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 2014. Amount of ¥28.6 billion in fiscal 2014, recognized as “new occurrences” in the first half of the term, was included in the amounts off-balanced
in the second half.
011_0800804262708.indd 177
2015/08/12 11:12:50
SMFG 2015
177
SMBC
Securities (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Balance of Securities
Year-End Balance
March 31
Domestic operations:
Millions of yen
2015
2014
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 �����������������������������������������������������������������������������������������������������������������
¥13,970,107
32,589
2,386,604
5,180,246
1,319,934
/
/
¥22,889,483
¥
—
—
—
—
7,095,783
4,238,647
2,857,136
¥ 7,095,783
¥29,985,267
¥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
Average Balance
Year ended March 31
Domestic operations:
Millions of yen
2015
2014
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 �����������������������������������������������������������������������������������������������������������������
¥13,479,162
43,599
2,378,427
3,227,368
1,057,250
/
/
¥20,185,808
¥
—
—
—
—
6,338,457
3,739,007
2,599,449
¥ 6,338,457
¥26,524,265
¥16,063,121
80,789
2,365,242
3,181,987
925,239
/
/
¥22,616,380
¥
—
—
—
—
5,710,389
3,411,872
2,298,516
¥ 5,710,389
¥28,326,769
Note: The average balance of foreign-currency-denominated transactions by domestic branches in international operations is calculated by the monthly current
method.
178
011_0800804262708.indd 178
2015/08/12 11:12:50
SMBCSMFG 2015 Balance of Securities Held, Classified by Maturity
March 31
One year or less
Japanese government bonds ����������������������������������������������������������������������
Japanese local government bonds �������������������������������������������������������������
Japanese corporate bonds �������������������������������������������������������������������������
Others ����������������������������������������������������������������������������������������������������������
Foreign bonds ������������������������������������������������������������������������������������������
Foreign stocks �����������������������������������������������������������������������������������������
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 �����������������������������������������������������������������������������������������
Securities (Nonconsolidated)
Millions of yen
2015
2014
¥ 2,988,136
31,944
253,859
1,163,927
1,153,064
—
6,769,101
—
761,548
852,950
713,223
—
3,872,810
125
796,838
858,640
706,363
77
340,059
478
262,889
506,117
484,599
5,932
—
—
244,804
790,603
641,970
—
—
40
66,664
715,754
539,425
134,782
—
—
—
5,180,246
3,527,724
—
2,716,343
¥13,970,107
32,589
2,386,604
5,180,246
8,415,718
4,238,647
2,857,136
¥ 4,689,108
12,392
639,242
768,566
752,318
—
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
011_0800804262708.indd 179
2015/08/12 11:12:50
SMFG 2015
179
SMBC Ratios (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Income Ratio
Year ended March 31
Ordinary profit to total assets ��������������������������������������������������������������������������
Ordinary profit to stockholders’ equity ������������������������������������������������������������
Net income to total assets ������������������������������������������������������������������������������
Net income to stockholders’ equity ����������������������������������������������������������������
2015
0.67%
12.65
0.45
8.51
Percentage
2014
0�74%
13�97
0�47
8�88
Notes: 1. Ordinary profit (net income) to total assets = Ordinary profit (net income) / Average balance of total assets excluding customers’ liabilities for acceptances
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
2015
2014
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) ��������������������������������������������������������������������������������������������������������
1.31%
0.79
0.52
1.43%
1.18
0.25
1.39%
0.93
0.46
1�30%
0�86
0�44
1�40%
1�19
0�21
1�36%
0�96
0�40
Loan-Deposit Ratio
March 31
Domestic operations:
Millions of yen
2015
2014
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.
¥ 46,155,615
81,401,419
56.70%
58.91
¥ 22,118,693
23,958,359
92.32%
93.36
¥ 68,274,308
105,359,778
64.80%
66.65
¥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
180
011_0800804262708.indd 180
2015/08/12 11:12:50
SMBCSMFG 2015 Securities-Deposit Ratio
March 31
Domestic operations:
Ratios (Nonconsolidated)
Millions of yen
2015
2014
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.
¥ 22,889,483
81,401,419
28.11%
26.25
¥ 7,095,783
23,958,359
29.61%
28.45
¥ 29,985,267
105,359,778
28.45%
26.74
¥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
011_0800804262708.indd 181
2015/08/12 11:12:50
SMFG 2015
181
SMBC Capital (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
Changes in Number of Shares Issued and Capital Stock
February 16, 2010* ����������������������������������� 20,016,015
Number of shares issued
Changes
Balances
106,318,401
Millions of yen
Capital stock
Capital reserve
Changes
484,037
Balances
1,770,996
Changes
484,037
Balances
1,771,043
Remarks:
* Allotment to third parties: Common stock: 20,016,015 shares
Issue price: ¥48,365 Capitalization: ¥24,182.5
Number of Shares Issued
March 31, 2015
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, 2015
Sumitomo Mitsui Financial Group, Inc� ����������������������������������������������������������
Number of shares
106,248,400
b. Preferred Stock (1st series Type 6)
March 31, 2015
Sumitomo Mitsui Banking Corporation �����������������������������������������������������������
Number of shares
70,001
Percentage of
shares outstanding
100�00%
Percentage of
shares outstanding
100�00%
182
011_0800804262708.indd 182
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SMBCSMFG 2015 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) �������������������������������������������������������
2015
26,416
36-5
13-4
¥8,437
2014
22,915
36-0
12-11
¥8,318
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
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:
Branches �����������������������������������������������������������������������������������������������������
Subbranches �����������������������������������������������������������������������������������������������
Representative offices ���������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
2015
507
475
2
15
17
7
1,023
2014
505
150
4
16
17
8
700
Notes: 1. “Main offices and branches” includes the International Business Operations Dept. (2015, 2 branches; 2014, 2 branches), specialized deposit account
branches (2015, 46 branches; 2014, 46 branches) and ATM administration branches (2015, 17 branches; 2014, 17 branches).
2. “Subbranches” includes Corporate Business Office, etc. from beginning of the fiscal year ended March 31, 2015.
Number of Automated Service Centers
March 31
Automated service centers������������������������������������������������������������������������������
2015
44,232
2014
42,500
Domestic Exchange Transactions
Year ended March 31
Exchange for remittance:
Destined for various parts of the country:
Millions of yen
2015
2014
Number of accounts (thousands) ������������������������������������������������������������
Amount ����������������������������������������������������������������������������������������������������
367,767
¥ 577,687,912
Received from various parts of the country:
Number of accounts (thousands) ������������������������������������������������������������
Amount ����������������������������������������������������������������������������������������������������
300,453
¥ 989,403,191
Collection:
Destined for various parts of the country:
Number of accounts (thousands) ������������������������������������������������������������
Amount ����������������������������������������������������������������������������������������������������
2,366
¥ 6,137,295
Received from various parts of the country:
Number of accounts (thousands) ������������������������������������������������������������
Amount ����������������������������������������������������������������������������������������������������
Total �����������������������������������������������������������������������������������������������������������������
901
¥ 2,166,712
¥1,575,395,111
359,895
¥ 591,307,589
299,198
¥ 977,507,315
2,427
¥ 6,275,225
916
¥ 1,977,062
¥1,577,067,193
011_0800804262708.indd 183
2015/08/12 11:12:50
SMFG 2015
183
SMBC Others (Nonconsolidated)
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
2015
$2,225,773
1,836,710
$ 963,513
37,385
$5,063,382
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 �����������������������������������������������������������������������������������������������������������������
2015
¥ 23,399
40,391
—
64,614
14,405
¥ 142,810
898,719
5,679,600
¥6,721,131
2014
$2,279,378
2,002,238
$ 960,770
46,107
$5,288,495
2014
¥ 7,664
27,875
—
55,626
8,789
¥ 99,956
623,553
5,043,559
¥5,767,068
184
011_0800804262708.indd 184
2015/08/12 11:12:50
SMBCSMFG 2015 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 ����������������������������������������������������������������������������
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 ��������������������������������������������������������������������������������
Composite trusts �����������������������������������������������������������������������������������������
Total liabilities ����������������������������������������������������������������������������������������������
2015
¥ 373,230
373,230
1,451,206
320,619
1,055,893
1,931
72,762
42,402
552,911
9,690
543,220
1,579
244,248
716,289
161,090
161,090
¥3,542,957
¥1,217,532
1,671,868
100,000
552,391
1,165
¥3,542,957
Notes: 1. Amounts less than 1 million yen have been rounded down.
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
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
011_0800804262708.indd 185
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SMFG 2015
185
SMBC
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: 317
Please refer to “Principal Subsidiaries and Affiliates” on page 264 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.
186
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SMFGSMFG 2015 (Millions of yen, except percentages)
Year ended March 31, 2015
Amounts
excluded
under
transitional
arrangements
Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
Basel III
Template No.
Items
Common Equity Tier 1 capital: instruments and reserves
1a+2-1c-26
Directly issued qualifying common share capital plus related capital surplus and retained
earnings
1a
2
1c
26
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
1b Stock acquisition rights to common shares
6,909,010
3,095,225
4,098,425
175,261
109,379
—
2,085
3 Accumulated other comprehensive income and other disclosed reserves
5 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)
801,543 1,202,315
153,863
70,451
70,451
6,312,342
3,096,244
3,480,085
175,115
88,872
—
1,634
175,594
150,155
104,846
104,846
702,376
6 Common Equity Tier 1 capital: instruments and reserves
(A)
7,936,954
6,744,573
Common Equity Tier 1 capital: regulatory adjustments
8+9 Total intangible assets (excluding those relating to mortgage servicing rights)
8
9
10
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)
11 Net deferred losses on hedges
12 Shortfall of eligible provisions to expected losses
13 Gain on sale on securitization transactions
14 Gains and losses due to changes in own credit risk on fair valued liabilities
15 Net defined benefit asset
16 Investments in own shares (excluding those reported in the Net assets section)
17 Reciprocal cross-holdings in common equity
18
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)
19+20+21 Amount exceeding the 10% threshold on specified items
19
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)
20
21
22 Amount exceeding the 15% threshold on specified items
23
24
25
27
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
303,449
174,118
129,330
455,174
261,177
193,996
153,911
95,584
58,327
615,647
382,338
233,309
2,003
3,004
2,617
10,470
(11,477)
12,822
18,683
2,597
102,160
3,954
—
(17,216)
19,233
28,025
3,896
153,241
5,931
—
(11,761)
—
8,136
1,106
15,465
1,518
—
(47,047)
—
32,545
4,424
61,860
6,074
—
26,239
39,359
22,783
91,133
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
28 Common Equity Tier 1 capital: regulatory adjustments
(B)
460,433
193,776
Common Equity Tier 1 capital (CET1)
29 Common Equity Tier 1 capital (CET1) ((A)-(B))
(C)
7,476,520
6,550,796
012_0800885852708.indd 187
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SMFG 2015
187
SMFGCapital Ratio Information
Basel III
Template No.
Items
Additional Tier 1 capital: instruments
31a
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as equity under applicable accounting standards and the breakdown
31b Stock acquisition rights to Additional Tier 1 instruments
30
32
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
34-35 Adjusted minority interests, etc. (amount allowed to be included in group Additional Tier 1)
33+35
Eligible Tier 1 capital instruments subject to transitional arrangements included in Additional
Tier 1 capital: instruments
33
35
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
36 Additional Tier 1 capital: instruments
Additional Tier 1 capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments
38 Reciprocal cross-holdings in Additional Tier 1 instruments
(D)
39
40
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
of which: goodwill and others
of which: gain on sale on securitization transactions
of which: amount equivalent to 50% of shortfall of eligible provisions to expected losses
42
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover
deductions
43 Additional Tier 1 capital: regulatory adjustments
Additional Tier 1 capital (AT1)
44 Additional Tier 1 capital ((D)-(E))
Tier 1 capital (T1 = CET1 + AT1)
45 Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))
Tier 2 capital: instruments and provisions
(Millions of yen, except percentages)
Year ended March 31, 2015
Amounts
excluded
under
transitional
arrangements
Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
—
—
—
—
182,251
1,124,296
1,124,296
—
93,785
93,785
1,400,333
—
—
—
—
145,035
1,212,074
1,212,074
—
21,791
21,791
1,378,900
—
—
203
—
—
304
—
—
212
—
—
848
63,453
95,180
31,729
126,916
284,571
246,929
28,025
9,616
—
(E)
348,227
(F)
1,052,105
383,420
350,875
32,545
—
—
415,361
963,538
(G)
8,528,626
7,514,335
46
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
48-49 Adjusted minority interests, etc. (amount allowed to be included in group Tier 2)
47+49
Eligible Tier 2 capital instruments subject to transitional arrangements included in Tier 2:
instruments and provisions
47
49
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)
50 Total of general reserve for possible loan losses and eligible provisions included in Tier 2
50a
50b
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
51 Tier 2 capital: instruments and provisions
(H)
—
—
374,988
—
39,348
1,423,997
—
—
—
—
—
34,422
1,627,426
—
1,423,997
1,627,426
64,776
64,776
—
699,394
679,578
19,816
2,602,505
60,709
53,383
7,325
506,578
480,004
26,574
2,229,136
188
012_0800885852708.indd 188
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SMFGSMFG 2015Capital Ratio Information
Basel III
Template No.
Items
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments
53 Reciprocal cross-holdings in Tier 2 instruments
54
55
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
57 Tier 2 capital: regulatory adjustments
Tier 2 capital (T2)
58 Tier 2 capital (T2) ((H)-(I))
Total capital (TC = T1 + T2)
(Millions of yen, except percentages)
Year ended March 31, 2015
Amounts
excluded
under
transitional
arrangements
Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
—
—
—
—
—
—
—
—
4,043
6,065
6,402
25,611
50,023
75,034
25,000
100,000
111,149
111,149
165,216
(I)
150,650
150,650
182,052
(J)
2,437,289
2,047,083
59 Total capital (TC = T1 + T2) ((G) + (J))
(K)
10,965,916
9,561,418
Risk weighted assets
Total of items included in risk weighted assets subject to transitional arrangements
of which: intangible assets (excluding those relating to mortgage servicing rights)
of which: net defined benefit asset
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)
210,891
32,434
33,867
64,835
52,936
284,115
15,718
5,795
151,410
70,582
60 Risk weighted assets
Capital ratio (consolidated)
61 Common Equity Tier 1 risk-weighted capital ratio (consolidated) ((C)/(L))
62 Tier 1 risk-weighted capital ratio (consolidated) ((G)/(L))
63 Total risk-weighted capital ratio (consolidated) ((K)/(L))
Regulatory adjustments
72
73
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)
74 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)
75
Provisions included in Tier 2 capital: instruments and provisions
76 Provisions (general reserve for possible loan losses)
77 Cap on inclusion of provisions (general reserve for possible loan losses)
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal
ratings-based approach (prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
Capital instruments subject to transitional arrangements
82 Current cap on Additional Tier 1 instruments subject to transitional arrangements
83
Amount excluded from Additional Tier 1 due to cap (excess over cap after redemptions and
maturities)
84 Current cap on Tier 2 instruments subject to transitional arrangements
85 Amount excluded from Tier 2 due to cap (excess over cap after redemptions and maturities)
(L)
66,136,801
61,623,294
11.30%
12.89%
16.58%
798,335
477,320
—
5,285
64,776
84,065
—
312,347
1,138,100
—
1,423,997
43,258
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, 2015 Year ended March 31, 2014
5,290,944
4,929,863
012_0800885852708.indd 189
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SMFG 2015
189
SMFGCapital Ratio Information
■ Capital Requirements
March 31
Capital requirements for credit risk:
Billions of yen
2015
2014
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:
¥5,093.8
3,091.1
2,588.4
42.1
183.2
277.4
661.2
404.9
127.4
128.9
498.3
/
374.7
123.6
87.7
35.9
324.0
75.5
443.6
519.6
179.5
8.2
5,801.1
74.6
42.0
26.0
1.9
1.4
3.3
82.7
—
157.3
¥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
Advanced measurement approach ........................................................................................................
Basic indicator approach ........................................................................................................................
Total capital requirements for operational risk........................................................................................
Total amount of capital requirements .......................................................................................................
193.3
33.1
226.4
¥6,184.8
186.5
41.4
227.9
¥6,029.6
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.
190
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SMFGSMFG 2015Capital Ratio Information 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 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 36). Different rating series are used for domestic and overseas obligors — J1 ~ J10 for domestic
obligors and G1 ~ G10 for overseas obligors — as shown in the table 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 and business 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
012_0800885852708.indd 191
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SMFG 2015
191
SMFGCapital Ratio Information (B) Portfolio
a. Domestic Corporate, Sovereign and Bank Exposures
Billions of yen
Exposure amount
Undrawn amount
Off-balance
sheet assets
March 31, 2015
J1-J3 ................................... ¥24,669.4 ¥19,660.6 ¥5,008.8
J4-J6 ................................... 16,265.1 14,077.4
2,187.7
J7 (excluding J7R) ...............
42.2
894.2
Japanese government and
On-balance
sheet assets
936.5
Total
local municipal corporations ..... 47,942.0 47,447.1
4,575.3
873.8
494.9
Others ..................................
495.1
Default (J7R, J8-J10) ...........
40.7
Total ..................................... ¥95,797.7 ¥87,528.3 ¥8,269.4
5,070.3
914.4
Weighted
average
LGD
Weighted
Weighted
average
average
CCF
PD
50.41% 0.07% 34.52%
0.78
50.85
15.42
50.72
33.10
33.77
Weighted
average
EL default
Weighted
average
risk weight
—% 19.82%
—
49.61
— 146.52
50.32
50.41
98.50
—
0.00
0.84
100.00
—
35.31
43.50
46.88
—
—
—
45.98
—
0.03
50.10
11.21
—
Total
¥4,323.8
844.1
9.8
237.9
158.7
1.3
¥5,575.6
Billions of yen
Exposure amount
Undrawn amount
Off-balance
sheet assets
March 31, 2014
J1-J3 ................................... ¥22,177.3 ¥18,077.9 ¥4,099.4
2,073.4
J4-J6 ................................... 15,096.5 13,023.1
J7 (excluding J7R) ...............
73.1
1,009.0
Japanese government and
On-balance
sheet assets
1,082.1
Total
local municipal corporations ..... 41,396.6 41,080.5
4,597.9
1,129.8
316.1
374.5
Others ..................................
Default (J7R, J8-J10) ...........
28.4
Total ..................................... ¥85,883.0 ¥78,918.1 ¥6,964.9
4,972.4
1,158.2
Weighted
average
LGD
Weighted
Weighted
average
average
PD
CCF
50.35% 0.06% 35.62%
0.71
50.63
12.85
50.66
31.26
29.73
Weighted
average
EL default
Weighted
average
risk weight
—% 18.85%
—
46.05
— 125.89
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
—
Total
¥4,016.6
784.2
20.7
138.2
64.4
0.2
¥5,024.3
Note: “Others” as of March 31, 2014 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. Following implementation of our domestic business structure revision started in April 2014, “Others” as of
March 31, 2015 does not include exposures to standardized SME Loans.
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, 2015
G1-G3 .................................. ¥36,212.6 ¥26,970.0 ¥ 9,242.7
G4-G6 ..................................
1,354.5
G7 (excluding G7R) .............
41.4
Others ..................................
198.5
Default (G7R, G8-G10) ........
27.8
Total ..................................... ¥39,675.6 ¥28,810.6 ¥10,865.0
2,610.0
396.6
341.8
114.6
1,255.5
355.2
143.3
86.7
Weighted
average
LGD
Weighted
Weighted
average
average
PD
CCF
50.32% 0.13% 30.44%
3.07
50.32
13.98
50.32
2.44
50.32
100.00
100.00
—
—
18.42
27.59
31.65
48.94
—
Total
¥8,406.7
383.2
58.1
49.0
25.4
¥8,922.4
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
355.5
G4-G6 ..................................
28.5
G7 (excluding G7R) .............
59.7
Others ..................................
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
LGD
Weighted
Weighted
average
average
CCF
PD
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
—
Total
¥6,675.6
229.5
27.5
28.5
1.3
¥6,962.5
Weighted
average
EL default
Weighted
average
risk weight
—% 17.93%
—
50.47
— 132.48
92.25
—
53.25
44.68
—
—
Weighted
average
EL default
Weighted
average
risk weight
—% 21.49%
—
61.93
— 124.43
85.55
—
53.00
61.86
—
—
192
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SMFGSMFG 2015Capital Ratio Information
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, 2015.
• 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:
Billions of yen
2015
2014
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%
70%
¥ 0.0
15.5
Good:
Residual term less than 2.5 years .....
Residual term 2.5 years or more .......
Satisfactory ...........................................
Weak ......................................................
Default ...................................................
Total .......................................................
70%
90%
115%
250%
—
35.9
27.8
29.2
—
3.8
¥112.4
¥ —
3.0
—
—
—
—
—
¥3.0
¥ 0.3
12.2
2.7
4.7
10.3
—
1.6
¥31.7
¥ 174.1
890.5
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
(b) High-Volatility Commercial Real Estate (HVCRE)
March 31
Strong:
Risk
weight
Billions of yen
2015
2014
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%
—
¥ 3.6
6.6
94.9
48.7
103.0
—
—
¥256.7
¥ 0.1
6.3
54.3
125.4
77.8
8.0
—
¥272.0
012_0800885852708.indd 193
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SMFG 2015
193
SMFGCapital Ratio Information
b. PD/LGD Approach Applicable Portion, Other Than Slotting Criteria Applicable Portion
(a) Project Finance
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
sheet assets
March 31, 2015
G1-G3 .................................. ¥3,069.8 ¥2,184.3
G4-G6 ..................................
178.8
G7 (excluding G7R) .............
30.9
Others ..................................
—
Default (G7R, G8-G10) ........
15.1
Total ..................................... ¥3,328.3 ¥2,409.0
210.5
33.0
—
15.1
Off-balance
sheet assets
¥885.5
31.7
2.1
—
—
¥919.3
Total
¥914.9
41.8
0.1
—
—
¥956.8
Weighted
average
LGD
Weighted
Weighted
average
average
PD
CCF
0.29% 29.91%
50.32%
2.46
50.32
17.45
50.32
—
—
— 100.00
—
—
22.83
45.64
—
62.68
—
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
Weighted
average
CCF
50.25%
50.25
—
—
—
—
Total
¥49.3
0.8
—
—
—
¥50.1
(b) Object Finance
Billions of yen
Exposure amount
Undrawn amount
Weighted
average
LGD
Weighted
average
PD
0.39% 33.62%
3.42
35.01
—
—
—
10.85
88.86
—
—
—
March 31, 2015
G1-G3 ..................................
G4-G6 ..................................
G7 (excluding G7R) .............
Others ..................................
Default (G7R, G8-G10) ........
Total .....................................
Total
¥198.9
11.0
0.7
—
1.3
¥211.8
On-balance
sheet assets
¥151.0
11.0
0.7
—
1.3
¥163.9
Off-balance
sheet assets
¥47.9
—
—
—
—
¥47.9
Total
¥42.0
—
—
—
—
¥42.0
Weighted
average
LGD
Weighted
Weighted
average
average
PD
CCF
0.26% 17.70%
50.32%
4.05
—
13.71
—
—
—
— 100.00
—
—
14.31
5.00
—
62.77
—
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
PD
CCF
0.33% 15.46%
50.25%
3.01
—
27.78
—
—
—
— 100.00
—
—
24.06
18.80
—
66.10
—
(c) Income-Producing Real Estate (IPRE)
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
sheet assets
March 31, 2015
J1-J3 ................................... ¥ 504.9 ¥ 459.1
J4-J6 ...................................
717.1
J7 (excluding J7R) ...............
5.5
Others ..................................
242.6
Default (J7R, J8-J10) ...........
0.7
Total ..................................... ¥1,647.0 ¥1,425.0
859.5
5.5
250.1
27.0
Off-balance
sheet assets
¥ 45.8
142.4
—
7.5
26.3
¥222.0
Total
¥ 2.2
—
—
11.7
—
¥13.9
Weighted
average
LGD
Weighted
average
CCF
50.32%
—
—
50.32
Weighted
average
PD
0.05% 29.91%
1.20
10.38
1.18
— 100.00
—
—
33.11
1.00
33.84
37.73
—
Weighted
average
EL default
Weighted
average
risk weight
—% 41.97%
—
74.63
— 254.13
—
—
53.25
58.42
—
—
Weighted
average
EL default
Weighted
average
risk weight
—% 60.45%
37.06
—
— 523.88
—
—
—
—
—
—
Weighted
average
EL default
Weighted
average
risk weight
—% 25.08%
—
—
—
58.51
—
50.86
22.09
—
53.25
—
Weighted
average
EL default
Weighted
average
risk weight
—% 25.53%
—
81.65
— 103.34
—
—
53.00
61.86
—
—
Weighted
average
EL default
Weighted
average
risk weight
—% 14.12%
—
—
—
36.55
—
76.26
4.45
30.59
14.75
—
194
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SMFGSMFG 2015Capital Ratio Information
Billions of yen
Exposure amount
Undrawn amount
Total
On-balance
March 31, 2014
sheet assets
J1-J3 ................................... ¥ 534.8 ¥ 466.7
J4-J6 ...................................
578.9
18.6
J7 (excluding J7R) ...............
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
—
Weighted
average
EL default
Weighted
average
risk weight
—% 14.30%
—
66.88
— 145.17
45.59
—
7.00
35.54
—
—
(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, 2015
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
EL default
Weighted
average
risk weight
Use model .........................
Others ...............................
Delinquent .............................
Default ..........................................
Total ..............................................
¥12,134.0
473.2
97.2
201.0
¥12,905.4
¥12,104.3
473.2
92.4
200.8
¥12,870.6
¥29.8
—
4.8
0.2
¥34.8
0.45%
1.07
20.59
100.00
—
35.37%
53.26
38.08
36.70
—
—%
—
—
34.86
—
24.77%
73.55
202.39
22.99
—
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Off-balance
sheet assets
Weighted
average
PD
Weighted
average
LGD
Weighted
average
EL default
Weighted
average
risk weight
March 31, 2014
Mortgage loans
PD segment:
Not delinquent
Use model ......................... ¥12,370.6
522.5
Others ...............................
113.5
Delinquent .............................
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
—
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.
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SMFG 2015
195
SMFGCapital Ratio Information
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, 2015
Card loans
PD segment:
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Balance
Increase
Undrawn amount
Off-balance
sheet
assets
Weighted
average
CCF
Weighted
average
PD
Weighted
average
LGD
Weighted
average
EL default
Weighted
average
risk weight
Total
Not delinquent ..... ¥ 789.4 ¥ 683.5
Delinquent ............
14.4
15.0
Credit card balances
¥103.9
0.6
¥ 2.0
—
¥ 221.3 46.97% 2.49% 83.32%
3.1
19.50
26.61
77.40
—% 59.90%
— 210.88
PD segment:
Not delinquent ..... 1,506.1
845.6
Delinquent ............
5.7
6.8
Default .........................
21.7
24.6
Total ............................. ¥2,341.9 ¥1,570.9
333.8
1.1
2.9
¥442.3
326.7
—
—
¥328.7
4,243.4
—
—
¥4,467.8
0.99
7.87
—
76.40
— 100.00
—
—
72.92
72.98
80.99
—
—
22.93
— 126.20
77.94
—
74.75
—
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Balance
Increase
Undrawn amount
Off-balance
sheet
assets
Weighted
average
CCF
Weighted
average
PD
Weighted
average
LGD
Weighted
average
EL default
Weighted
average
risk weight
Total
March 31, 2014
Card loans
PD segment:
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
23.47
76.74
—% 57.62%
— 206.45
Not delinquent ..... 1,352.0
779.1
Delinquent ............
4.1
5.0
Default .........................
24.4
27.4
Total ............................. ¥2,112.7 ¥1,452.4
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
—
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.”
196
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SMFGSMFG 2015Capital Ratio Information
C. Other Retail Exposures
(A) Rating Procedures
• “Other retail exposures” includes business loans such as apartment construction loans and consumer loans such as My Car Loan.
• Business loans and consumer loans are rated as follows.
a. Business 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 LTV for
business loans.
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, 2015
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
EL default
Weighted
average
risk weight
Use model .........................
Others ...............................
Delinquent .............................
¥1,029.5
210.5
111.0
¥1,012.5
209.2
109.6
¥17.0
1.3
1.4
0.99%
0.82
6.50
47.87%
42.77
43.40
—%
—
—
43.26%
35.64
69.19
Consumer loans
PD segment:
Not delinquent
Use model .........................
Others ...............................
Delinquent .............................
Default ..........................................
Total ..............................................
324.2
138.5
30.6
80.1
¥1,924.3
323.5
136.8
30.5
79.9
¥1,901.9
0.7
1.7
0.2
0.2
¥22.5
0.87
1.67
16.69
100.00
—
43.25
55.52
46.73
53.54
—
—
—
—
49.81
—
36.25
67.59
95.47
46.69
—
Billions of yen
Exposure amount
On-balance
sheet assets
Total
Off-balance
sheet assets
Weighted
average
PD
Weighted
average
LGD
Weighted
average
EL default
Weighted
average
risk weight
March 31, 2014
Business loans
PD segment:
Not delinquent
Use model .........................
Others ...............................
Delinquent .............................
¥1,413.4
346.9
253.3
¥1,395.5
345.7
251.3
¥17.9
1.2
2.0
0.96%
0.58
23.62
55.10%
54.00
58.93
—%
—
—
49.12%
24.66
106.55
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
0.9
1.9
0.5
0.3
¥24.6
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
—
Notes: 1. “Business loans” as of March 31, 2014 includes apartment construction loans and standardized SME loans. Following implementation of our domestic business
structure revision started in April 2014, “Business loans” as of March 31, 2015 include apartment construction loans. Domestic Corporate Exposures include
standardized SME loans because the grading system of them are integrated into that of Corporate 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.
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197
SMFGCapital Ratio Information
(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
37) 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 ...........................................................................................................................................
2015
¥ 809.1
305.2
185.9
119.3
503.9
4,093.4
/
¥4,902.5
2014
¥ 503.3
238.5
144.1
94.4
264.9
802.2
2,453.5
¥3,759.1
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
¥3,687.2
240.5
5.0
160.4
0.3
¥4,093.4
Billions of yen
2015
Weighted
average
PD
0.06%
0.47
10.88
0.36
100.00
—
Weighted
average
risk weight
100.55%
166.81
570.39
172.78
1,125.00
—
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
—
Exposure
amount
¥565.1
48.1
2.0
186.8
0.2
¥802.2
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 ........................................................................
2015
¥1,763.4
2014
¥1,378.4
Billions of yen
198
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SMFGSMFG 2015Capital Ratio Information
(4) Analysis of Actual Losses
A. Year-on-Year Comparison of Actual Losses
SMFG recorded an increase of ¥56.9 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, amounting to ¥7.8 billion on a consolidated basis for
fiscal year 2014.
SMBC recorded an increase of ¥43.8 billion in total credit costs compared to the previous fiscal year, which resulted in a gain on re-
versal of allowance for loan losses of ¥80.1 billion on a non-consolidated basis in fiscal year 2014. This is due primarily to a decrease in
the loan provision ratio, attributable to improved business conditions of obligors and a downward trend in loan losses, in a continuous-
ly favorable economic environment.
Total Credit Costs
Billions of yen
Fiscal 2014 (A)
Fiscal 2013 (B)
Fiscal 2012
SMFG (consolidated) total .....................................................
SMBC (consolidated) total ....................................................
SMBC (nonconsolidated) total ..............................................
Corporate exposures .........................................................
Sovereign exposures .........................................................
Bank exposures .................................................................
Residential mortgage exposures .......................................
QRRE .................................................................................
Other retail exposures .......................................................
¥ 7.8
(65.4)
(80.1)
(40.6)
(6.0)
(0.7)
(0.3)
(0.1)
(2.6)
¥ (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
Increase
(decrease)
(A) – (B)
¥56.9
47.9
43.8
82.2
(6.4)
0.2
(0.2)
0.0
(2.1)
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).
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199
SMFGCapital Ratio Information B. Comparison of Estimated and Actual Losses
Fiscal 2014
Fiscal 2013
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 ..................................
¥ —
—
642.5
523.6
12.7
8.5
2.9
0.0
94.8
After deduction
of reserves
¥ —
—
171.1
128.1
1.4
4.2
2.3
(0.0)
40.7
Actual loss
amounts
¥ 7.8
(65.4)
(80.1)
(40.6)
(6.0)
(0.7)
(0.3)
(0.1)
(2.6)
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
Fiscal 2012
Fiscal 2011
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 ..................................
¥ —
—
940.1
765.9
22.0
14.9
3.7
0.1
133.5
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
After deduction
of reserves
¥ —
—
213.9
132.2
1.8
4.7
2.9
(0.0)
77.4
Actual loss
amounts
¥121.3
91.7
58.6
57.5
(0.2)
(0.0)
0.2
(0.0)
10.5
¥ —
—
1,062.7
889.3
12.4
14.9
3.8
0.1
142.3
Fiscal 2010
Fiscal 2009
Estimated loss amounts
Estimated loss amounts
Billions of yen
SMFG (consolidated) total ................................
SMBC (consolidated) total ...............................
SMBC (nonconsolidated) total .........................
Corporate exposures ....................................
Sovereign exposures ....................................
Bank exposures ............................................
Residential mortgage exposures ..................
QRRE ............................................................
Other retail exposures ..................................
¥ —
—
1,204.3
1,021.1
7.8
30.5
4.1
0.1
140.8
After deduction
of reserves
¥ —
—
417.2
277.4
6.3
19.2
3.2
(0.0)
111.2
Actual loss
amounts
¥217.3
159.8
94.3
71.9
5.4
(14.0)
0.3
(0.1)
34.0
After deduction
of reserves
¥ —
—
354.0
210.0
4.3
34.4
3.4
0.1
107.5
Actual loss
amounts
¥473.0
419.4
254.7
216.6
3.9
3.5
0.7
0.1
61.6
¥ —
—
1,197.2
984.0
5.8
52.1
4.0
0.1
151.2
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.
200
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SMFGSMFG 2015Capital Ratio Information
■ Standardized Approach
1. Scope
The following consolidated subsidiaries have adopted the standardized approach for exposures as of March 31, 2015 (i.e. consolidated
subsidiaries not listed in the “Internal Ratings-Based (IRB) Approach: 1. Scope” on page 190).
(1) Consolidated Subsidiaries Planning to Adopt Phased Rollout of the IRB Approach
Cedyna Financial Corporation, SMBC Aviation Capital Limited
(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 ..........................................................................................
¥ 6,992.0
0.1
1,189.6
0.5
99.5
3,231.1
3,446.3
93.1
97.5
0.1
0.0
¥15,149.7
Billions of yen
2015
2014
Of which assigned
country risk score
¥ 639.0
—
639.6
—
20.2
—
2.2
0.0
—
—
—
¥1,300.9
¥ 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
Of which assigned
country risk score
¥144.0
—
610.4
—
8.6
—
0.8
0.0
—
—
—
¥763.8
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.
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SMFG 2015
201
SMFGCapital Ratio Information ■ 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 pages 34 to 39). Further, ex-
posures 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
2015
2014
Eligible financial
collateral
¥
—
84.3
44.9
—
39.5
5,040.9
¥5,125.2
Other eligible
IRB collateral
¥ —
55.0
55.0
—
—
—
¥55.0
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
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
2015
2014
March 31
Internal Ratings-Based (IRB) approach ....................................
Corporate exposures ............................................................
Sovereign exposures ............................................................
Bank exposures ....................................................................
Residential mortgage exposures ..........................................
QRRE ....................................................................................
Other retail exposures ..........................................................
Standardized approach ............................................................
Total ..........................................................................................
Guarantee
¥8,966.1
8,083.1
522.7
242.1
118.3
—
—
43.3
¥9,009.4
Credit derivative
¥374.2
374.2
—
—
—
—
—
—
¥374.2
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
202
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SMFGSMFG 2015Capital Ratio Information ■ 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
Billions of yen
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 .......................................................................................................
2015
¥ 6,629.6
4,718.7
11,348.4
3,365.0
7,680.5
—
194.5
—
74.6
33.8
5,869.0
5,479.3
35.2
35.2
—
Net credit equivalent amount
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
—
(after taking into account the CRM effect of collateral) ...............................................................
¥ 5,444.1
¥3,695.3
(2) Notional Principal Amounts of Credit Derivatives
Credit Default Swaps
Billions of yen
2015
2014
Notional principal amount
Notional principal amount
March 31
Protection purchased .........................................................
Protection provided ............................................................
Total
¥605.4
332.9
Of which
for CRM
¥370.2
—
Total
¥835.3
684.5
Of which
for CRM
¥271.0
—
Note: “Notional principal amount” is defined as the total of “amounts subject to calculation of credit equivalents” and “amounts employed for CRM.”
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203
SMFGCapital Ratio Information ■ 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.
204
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SMFGSMFG 2015Capital Ratio Information 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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SMFG 2015
205
SMFGCapital Ratio Information 8. Portfolio (Credit Risk)
(1) Securitization Transactions as Originator
A. As Originator (Excluding as Sponsor)
(A) Underlying Assets
March 31, 2015
Underlying asset amount
Asset
transfer type
¥ 0.1
1,277.6
Synthetic
type
¥10.7
—
Total
¥ 10.8
1,277.6
—
87.6
¥1,376.0
—
2.5
¥1,280.2
—
85.1
¥95.8
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
Billions of yen
Fiscal 2014
Securitized
amount
¥ —
182.6
—
—
¥182.6
Default
amount
¥4.9
1.4
—
—
¥6.3
Loss
amount
¥24.1
0.3
—
—
¥24.4
Gains/losses
on sales
¥ —
14.5
—
—
¥14.5
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
Claims on corporates ................
Mortgage loans .........................
Retail loans
(excluding mortgage loans) .....
Other claims ..............................
Total ...........................................
Claims on corporates ................
Mortgage loans .........................
Retail loans
(excluding mortgage loans) .....
Other claims ..............................
Total ...........................................
Notes: 1. The above amounts include the amount of underlying assets securitized during the term without entailing “securitization exposures.”
2. “Default amount” is the total of underlying assets which are past due three months or more and defaulted underlying assets.
3. Asset type classification is based on the major items in the underlying assets for each transaction.
4. “Other claims” includes claims on Private Finance Initiative (PFI) businesses and lease fees.
5. Following Articles 230 and 248 of the Notification, there are no amounts that represent “exposure to products subject to early amortization provisions” to
investors.
6. There are no amounts that represent “assets held for securitization transactions.”
(B) Securitization Exposures (Excluding Resecuritization Exposures)
a. Underlying Assets by Asset Type
Billions of yen
2015
Term-end balance
Total
¥ 4.9
272.7
On-balance
sheet assets
¥ 1.6
272.7
Off-balance
sheet assets
¥ 3.4
—
Amounts
subject to
a 1250%
risk weight
¥ 2.3
25.7
Increase
in capital
equivalent
¥ —
46.7
—
36.1
¥313.8
—
0.5
¥274.8
—
35.6
¥39.0
—
0.7
¥28.7
—
—
¥46.7
March 31
Claims on corporates .....
Mortgage loans ..............
Retail loans (excluding
mortgage loans) ............
Other claims ...................
Total ................................
b. Risk Weights
2014
Term-end balance
On-balance
sheet assets
¥ 4.9
229.7
Off-balance
sheet assets
¥ —
—
Amounts
subject to
a 1250%
risk weight
¥ 0.7
27.4
Increase
in capital
equivalent
¥ —
40.7
—
0.5
¥235.1
4.7
86.8
¥91.5
3.6
2.2
¥33.9
—
—
¥40.7
Total
¥ 4.9
229.7
4.7
87.3
¥326.6
March 31
20% or less ....................
100% or less ..................
650% or less ..................
Less than 1250% ...........
1250% ............................
Total ................................
Total
¥ 34.6
0.3
1.1
—
277.7
¥313.8
Billions of yen
2015
Term-end balance
On-balance
sheet assets
¥ —
—
—
—
274.8
¥274.8
Off-balance
sheet assets
¥34.6
0.3
1.1
—
3.0
¥39.0
Required
capital
¥ 0.1
0.0
0.2
—
30.4
¥30.7
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
Total
¥ 51.4
33.9
1.1
—
240.2
¥326.6
Required
capital
¥ 0.5
1.0
0.1
—
35.9
¥37.5
206
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SMFGSMFG 2015Capital Ratio Information
(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 ...
2015
/
2014
¥—
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, 2015
Underlying asset amount
Asset
transfer type
¥1,059.5
—
404.5
31.8
¥1,495.8
Total
¥1,059.5
—
404.5
31.8
¥1,495.8
Synthetic
type
¥—
—
—
—
¥—
Fiscal 2014
Securitized
amount
¥7,849.0
—
300.2
10.7
¥8,160.0
Default
amount
Loss
amount
¥63.3
—
0.6
1.2
¥65.2
¥91.4
—
3.0
0.3
¥94.7
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
Loss
amount
¥70.8
—
2.3
0.8
¥73.9
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
2015
Term-end balance
On-balance
March 31
sheet assets
Claims on corporates ..... ¥ 826.3 ¥ 826.3
Mortgage loans ..............
—
Retail loans (excluding
Total
—
Off-balance
sheet assets
¥—
—
Amounts
subject to
a 1250%
risk weight
¥0.3
—
Increase
in capital
equivalent
¥—
—
mortgage loans) .............
375.0
Other claims ...................
25.1
Total ................................ ¥1,226.4 ¥1,226.4
375.0
25.1
—
—
¥—
—
—
¥0.3
—
—
¥—
Total
¥641.3
—
247.2
38.0
¥926.4
2014
Term-end balance
On-balance
sheet assets
¥641.3
—
Off-balance
sheet assets
¥—
—
Amounts
subject to
a 1250%
risk weight
¥—
—
Increase
in capital
equivalent
¥—
—
247.2
38.0
¥926.4
—
—
¥—
—
—
¥—
—
—
¥—
SMFG 2015
207
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SMFGCapital Ratio Information
b. Risk Weights
2015
2014
Billions of yen
Total
March 31
20% or less .................... ¥1,218.7
100% or less ..................
7.5
650% or less ..................
—
Less than 1250% ...........
—
1250% ............................
0.3
Total ................................ ¥1,226.4
Term-end balance
On-balance
sheet assets
¥1,218.7
7.5
—
—
0.3
¥1,226.4
Off-balance
sheet assets
Required
capital
—
—
—
—
—
—
¥7.3
0.4
—
—
0.3
¥8.0
Term-end balance
On-balance
sheet assets
¥920.3
6.1
—
—
—
¥926.4
Total
¥920.3
6.1
—
—
—
¥926.4
Off-balance
sheet assets
¥—
—
—
—
—
¥—
Required
capital
¥5.5
0.3
—
—
—
¥5.8
(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 ...
Billions of yen
2015
/
2014
¥—
(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
2015
Term-end balance
Total
¥533.6
76.9
On-balance
sheet assets
¥201.0
76.9
Off-balance
sheet assets
¥332.6
—
Amounts
subject to
a 1250%
risk weight
¥30.9
—
Increase
in capital
equivalent
¥—
—
192.4
—
¥802.9
190.0
—
¥467.9
2.4
—
¥335.0
—
—
¥30.9
—
—
¥—
March 31
Claims on corporates .....
Mortgage loans ..............
Retail loans (excluding
mortgage loans) .............
Other claims ...................
Total ................................
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
¥—
—
142.6
—
¥386.4
0.8
—
¥281.4
—
—
¥32.3
—
—
¥—
Total
¥430.9
93.5
143.4
—
¥667.7
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 ¥3.6 billion as of March 31, 2015 and ¥3.1 billion as of March 31, 2014 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
¥682.7
5.5
—
—
114.7
¥802.9
Billions of yen
2015
Term-end balance
On-balance
sheet assets
¥462.4
5.5
—
—
—
¥467.9
Off-balance
sheet assets
¥220.3
—
—
—
114.7
¥335.0
Required
capital
¥ 3.4
0.3
—
—
32.8
¥36.4
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
Total
¥530.6
38.2
—
—
99.0
¥667.7
Required
capital
¥ 2.5
1.3
—
—
34.2
¥38.0
Note: The risk weight of “100% or less” includes balances of ¥3.6 billion as of March 31, 2015 and ¥3.1 billion as of March 31, 2014 for the securitization exposures
which includes loans whose credit risk are relatively high, such as U.S. subprime loans.
208
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SMFGSMFG 2015Capital Ratio Information (B) Resecuritization Exposures
a. Underlying Assets by Asset Type
2015
Term-end balance
Billions of yen
On-balance
sheet assets
¥0.5
—
Off-balance
sheet assets
¥ —
—
Amounts
subject to
a 1250%
risk weight
¥0.1
—
Increase
in capital
equivalent
¥—
—
2014
Term-end balance
On-balance
sheet assets
¥0.6
—
Off-balance
sheet assets
¥ —
—
Amounts
subject to
a 1250%
risk weight
¥0.1
—
Increase
in capital
equivalent
¥—
—
—
0.3
¥0.9
—
0.4
¥0.4
—
0.3
¥0.4
—
—
¥—
—
0.4
¥1.0
—
0.6
¥0.6
—
0.4
¥0.5
—
—
¥—
Total
¥0.6
—
—
1.0
¥1.6
March 31
Claims on corporates .....
Mortgage loans ..............
Retail loans (excluding
mortgage loans) .............
Other claims ...................
Total ................................
Total
¥0.5
—
—
0.7
¥1.2
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 ................................
Billions of yen
2015
Term-end balance
On-balance
sheet assets
¥0.5
—
—
—
0.4
¥0.9
Off-balance
sheet assets
¥0.2
0.1
0.1
—
—
¥0.4
Total
¥0.7
0.1
0.1
—
0.4
¥1.2
Required
capital
¥0.0
0.0
0.0
—
0.4
¥0.5
2014
Term-end balance
On-balance
sheet assets
Off-balance
sheet assets
¥0.5
—
—
—
0.5
¥1.0
¥0.5
0.1
—
—
—
¥0.6
Total
¥1.0
0.1
—
—
0.5
¥1.6
Required
capital
¥0.0
0.0
—
—
0.5
¥0.5
(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 ...
Billions of yen
2015
/
2014
¥—
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.”
012_0800885852708.indd 209
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SMFG 2015
209
SMFGCapital Ratio Information ■ 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
¥4,383.7
276.9
¥4,660.6
Fair value
¥4,383.7
—
—
¥
Balance sheet amount
¥3,456.8
293.6
¥3,750.4
Fair value
¥3,456.8
—
—
¥
Billions of yen
2015
2014
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 2014
¥66.7
83.5
4.0
12.8
Fiscal 2013
¥ 89.2
108.2
8.7
10.2
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
2015
2014
but not on consolidated statements of income ....................................................................................
¥2,259.1
¥1,250.6
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
Billions of yen
2015
2014
consolidated balance sheets or consolidated statements of income ..................................................
¥(50.1)
¥(57.1)
Note: The above amount is for stocks of affiliates with market prices.
210
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SMFGSMFG 2015Capital Ratio Information ■ 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, 2015
Domestic operations (excluding offshore banking accounts)
Loans, etc.
Bonds
Billions of yen
Derivatives
Others
Total
Manufacturing............................................................................ ¥ 9,095.1
Agriculture, forestry, fishery and mining ....................................
189.5
Construction ..............................................................................
1,217.2
Transport, information, communications and utilities ................
6,018.7
Wholesale and retail ..................................................................
6,119.0
Financial and insurance .............................................................
39,834.8
Real estate, goods rental and leasing .......................................
8,784.0
Services .....................................................................................
5,244.2
Local municipal corporations ....................................................
1,864.7
Other industries .........................................................................
27,552.6
Subtotal ..................................................................................... ¥105,919.6
Overseas operations and offshore banking accounts
Sovereigns ................................................................................. ¥ 7,453.1
Financial institutions ..................................................................
6,008.0
C&I companies ..........................................................................
21,393.5
Others ........................................................................................
5,050.7
Subtotal ..................................................................................... ¥ 39,905.3
Total ............................................................................................... ¥145,824.9
¥ 143.2
3.7
18.3
54.6
37.5
358.6
394.0
36.4
156.0
16,690.0
¥17,892.4
¥ 1,080.3
429.3
233.1
879.7
¥ 2,622.4
¥20,514.9
¥ 204.1
8.1
2.9
115.6
148.1
1,919.6
47.8
63.5
10.4
189.7
¥2,709.9
¥ 22.7
1,762.6
850.2
98.3
¥2,733.7
¥5,443.6
¥ 2,980.0
36.7
221.6
1,052.6
859.8
1,804.0
442.6
668.0
18.4
6,115.3
¥14,199.2
¥ 12,422.4
238.1
1,460.0
7,241.5
7,164.4
43,917.1
9,668.4
6,012.1
2,049.5
50,547.6
¥140,721.1
¥ 22.7
801.3
841.1
2,447.9
¥ 4,113.0
¥18,312.2
¥ 8,578.7
9,001.2
23,317.8
8,476.6
¥ 49,374.4
¥190,095.6
March 31, 2014
Domestic operations (excluding offshore banking accounts)
Loans, etc.
Bonds
Billions of yen
Derivatives
Others
Total
Manufacturing............................................................................ ¥ 8,908.0
198.7
Agriculture, forestry, fishery and mining ....................................
1,185.8
Construction ..............................................................................
5,835.1
Transport, information, communications and utilities ................
5,798.8
Wholesale and retail ..................................................................
31,229.7
Financial and insurance .............................................................
8,324.5
Real estate, goods rental and leasing .......................................
5,214.4
Services .....................................................................................
1,804.5
Local municipal corporations ....................................................
Other industries .........................................................................
27,108.7
Subtotal ..................................................................................... ¥ 95,608.3
Overseas operations and offshore banking accounts
Sovereigns ................................................................................. ¥ 6,418.0
5,159.1
Financial institutions ..................................................................
17,394.6
C&I companies ..........................................................................
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
Notes: 1. The above amounts are exposures after CRM.
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.
012_0800885852708.indd 211
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SMFG 2015
211
SMFGCapital Ratio Information
2. Exposure Balance by Type of Assets and Residual Term
March 31, 2015
To 1 year ........................................................................................ ¥ 40,443.4
More than 1 year to 3 years...........................................................
16,895.6
More than 3 years to 5 years .........................................................
16,656.4
More than 5 years to 7 years .........................................................
6,652.4
More than 7 years ..........................................................................
25,508.1
No fixed maturity ...........................................................................
39,669.0
Total ............................................................................................... ¥145,824.9
Loans, etc.
Bonds
¥ 4,621.5
7,981.9
4,787.3
1,006.1
2,117.9
—
¥20,514.9
Loans, etc.
March 31, 2014
To 1 year ........................................................................................ ¥ 35,233.1
14,914.7
More than 1 year to 3 years...........................................................
14,976.0
More than 3 years to 5 years .........................................................
More than 5 years to 7 years .........................................................
6,246.6
24,773.9
More than 7 years ..........................................................................
No fixed maturity ...........................................................................
33,134.7
Total ............................................................................................... ¥129,279.1
Bonds
¥ 5,978.7
7,701.2
2,856.5
2,114.4
726.5
—
¥19,377.3
Billions of yen
Derivatives
¥ 750.0
1,494.2
1,364.7
512.6
1,322.3
—
¥5,443.6
Billions of yen
Derivatives
¥ 491.3
834.3
1,446.7
361.3
560.7
—
¥3,694.3
Others
¥ 891.5
1,660.5
1,314.0
524.3
1,134.6
12,787.3
¥18,312.2
Total
¥ 46,706.4
28,032.1
24,122.4
8,695.4
30,082.9
52,456.3
¥190,095.6
Others
¥ 663.1
1,138.9
1,648.4
454.6
745.6
10,564.8
¥15,215.3
Total
¥ 42,366.2
24,589.1
20,927.7
9,176.8
26,806.7
43,699.6
¥167,566.0
Notes: 1. The above amounts are exposures after CRM.
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 .................................................................................................................................................
2015
¥1,526.4
171.5
46.8
42.9
81.8
¥1,697.9
2014
¥1,904.5
92.8
26.5
3.4
62.9
¥1,997.3
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 ......................................................................................................
2015
¥ 190.0
7.4
44.5
185.7
191.1
10.4
304.1
169.0
424.2
¥1,526.4
¥ 1.0
152.5
18.0
¥ 171.5
¥1,697.9
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
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.
212
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SMFGSMFG 2015Capital Ratio Information
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
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) .....
Overseas operations and offshore banking accounts .................
Asia ..........................................................................................
North America ..........................................................................
Other regions ...........................................................................
Total .................................................................................................
2015 (A)
¥ 387.0
0.7
647.1
590.0
57.1
28.6
5.4
23.1
¥1,034.8
2014 (B)
¥ 473.2
0.7
784.6
745.6
39.0
14.3
3.3
21.4
¥1,258.5
2013
¥ 539.3
0.0
1,042.7
990.7
52.0
15.0
12.2
24.8
¥1,582.0
Increase (decrease)
(A) – (B)
¥ (86.2)
—
(137.5)
(155.6)
18.1
14.3
2.1
1.7
¥(223.7)
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, 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 .................................................................................................
2015 (A)
¥ 387.0
0.7
647.1
590.0
83.7
2.9
20.0
81.9
79.2
8.2
109.1
68.1
136.9
57.1
0.3
43.7
13.1
¥1,034.8
2014 (B)
¥ 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
¥ 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
Increase (decrease)
(A) – (B)
¥ (86.2)
—
(137.5)
(155.6)
(26.3)
(0.1)
(18.4)
18.2
(35.9)
(2.7)
(63.9)
(21.8)
(4.7)
18.1
(2.6)
9.6
11.1
¥(223.7)
Notes: 1. “Specific reserve for possible loan losses” includes partial direct write-offs (direct reductions).
2. “Domestic operations” comprises the operations of SMFG, its domestic consolidated banking subsidiaries (excluding overseas branches) and other domestic
consolidated subsidiaries. “Overseas operations” comprises the operations of the overseas branches of domestic consolidated banking subsidiaries and overseas
consolidated subsidiaries.
5. Loan Write-Offs by Industry
Billions of yen
Fiscal 2014
Fiscal 2013
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 ............................................................................................................
¥ (0.3)
(0.0)
(0.1)
0.1
(0.9)
0.0
0.1
0.2
74.5
¥73.6
¥ —
0.0
3.4
¥ 3.4
¥77.0
¥ 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
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.
SMFG 2015
213
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SMFGCapital Ratio Information ■ 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 2014
Fiscal 2013
Billions of yen
VaR
¥2.7
5.6
1.7
3.2
Stressed VaR
¥ 3.5
13.2
2.3
7.1
VaR
¥1.5
8.5
1.3
3.9
Stressed VaR
¥ 2.3
17.8
2.3
8.4
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 2014
¥39.0
46.1
36.6
41.7
Fiscal 2013
¥41.5
49.2
29.9
40.2
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.
214
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SMFGSMFG 2015Capital Ratio Information ■ 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, 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 Loan Business Service Co., Ltd., SMBC Loan
Administration and Operations Service Co., Ltd., Sumitomo Mitsui Banking Corporation Europe Limited, Sumitomo Mitsui Banking
Corporation (China) Limited, SMBC Nikko Securities Inc., Cedyna Financial Corporation and SMBC Consumer Finance Co., Ltd.
2. Outline of the AMA
For the “Outline of the AMA,” please refer to pages 43 to 45.
3. Usage of Insurance to Mitigate Risk
SMFG had not taken measures to mitigate operational risk through insurance coverage for exposures.
012_0800885852708.indd 215
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SMFG 2015
215
SMFGCapital Ratio Information ■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2015)
Sumitomo Mitsui Financial Group, Inc. 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)
39,748,979
1,326,965
746,431
6,477,063
4,286,592
7,483,681
7,087
29,633,667
73,068,240
1,907,667
1,909,143
6,156,091
2,770,853
819,560
376,255
127,841
7,267,713
(671,248)
183,442,585
101,047,918
13,825,898
5,873,123
991,860
7,833,219
3,351,459
5,664,688
9,778,095
1,110,822
1,370,800
6,222,918
718,133
6,728,951
73,359
3,344
38,096
2,128
19,050
20,870
166,793
1,124
601,393
34,550
7,267,713
172,746,314
2,337,895
757,329
4,098,425
(175,261)
7,018,389
1,791,049
(30,180)
39,014
156,309
47,667
2,003,859
2,284
1,671,738
10,696,271
183,442,585
7-a
3-b, 7-b
7-c
3-a
4
5-a
7-d
9-a
9-b
5-b
5-c
1-a
1-b
1-c
1-d
6
2, 8-a
8-b
3
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
216
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SMFGSMFG 2015Capital Ratio Information (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
757,329
4,098,425
(175,261)
7,018,389
Amount
7,018,389
3,095,225
4,098,425
175,261
—
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
2,284
2,085
(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))
1a
2
1c
31a
Ref. No.
2
(Millions of yen)
Remarks
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
(Millions of yen)
Basel III Template
No.
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
2,085
—
—
Amount
819,560
29,633,667
92,771
153,707
(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
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
435,296
323,327
—
—
—
—
Amount
376,255
120,853
Amount
255,401
(Millions of yen)
(Millions of yen)
Remarks
Remarks
1b
31b
46
Ref. No.
3-a
3-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
4
Basel III Template
No.
15
SMFG 2015
217
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SMFGCapital Ratio Information 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
127,841
601,393
34,550
153,707
120,853
(Millions of yen)
Remarks
Ref. No.
5-a
5-b
5-c
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
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)
5,008
5,285
—
—
5,285
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
(30,180)
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
(28,694)
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
7,483,681
29,633,667
73,068,240
5,664,688
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
218
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SMFGSMFG 2015Capital Ratio Information (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
9,886
9,886
—
—
—
—
—
—
874,552
65,599
507
10,109
798,335
761,011
—
—
158,633
125,057
477,320
Amount
2,284
1,671,738
(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
9. Other capital instruments
(1) Consolidated balance sheet
Consolidated balance sheet items
Borrowed money
Bonds
(2) Composition of capital
153,863
—
182,251
—
39,348
Amount
9,778,095
6,222,918
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as liabilities under applicable
accounting standards
Directly issued qualifying Tier 2 instruments plus related capital
surplus of which: classified as liabilities under applicable accounting
standards
—
374,988
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
Ref. No.
9-a
9-b
Basel III Template
No.
32
46
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.
SMFG 2015
219
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SMFGCapital Ratio Information ■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2014)
Sumitomo Mitsui Financial Group, Inc. 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)
32,991,113
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
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
220
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SMFGSMFG 2015Capital Ratio Information (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
—
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
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))
1a
2
1c
31a
Ref. No.
2
(Millions of yen)
Remarks
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
(Millions of yen)
Basel III Template
No.
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
(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
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
477,922
291,636
—
—
—
—
Amount
119,932
42,607
Amount
77,325
(Millions of yen)
(Millions of yen)
Remarks
Remarks
1b
31b
46
Ref. No.
3-a
3-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
4
Basel III Template
No.
15
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SMFG 2015
221
SMFGCapital Ratio Information 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
Composition of capital disclosure
Amount
Remarks
(Millions of yen)
Basel III Template
No.
Deferred tax assets that rely on future profitability excluding those
arising from temporary differences (net of related tax liability)
13,087
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
Deferred tax assets arising from temporary differences (net of related tax
liability)
247,009
This item does not agree with the amount reported on the balance
sheet due to offsetting of assets and liabilities.
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)
—
—
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)
(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
222
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SMFGSMFG 2015Capital Ratio Information (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.
012_0800885852708.indd 223
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SMFG 2015
223
SMFGCapital Ratio Information ■ Composition of Leverage Ratio
Corresponding line # on
Basel III disclosure
template (Table2)
Corresponding line # on
Basel III disclosure
template (Table1)
On-balance sheet exposures (1)
Item
(In million yen, %)
As of March 31,
2015
As of March 31,
2014
1a
1b
1c
1d
1
2
3
1
2
7
3
7
On-balance sheet exposures before deducting adjustment items
Total assets reported in the consolidated balance sheet
The amount of assets of subsidiaries that are not included in the scope of the
leverage ratio on a consolidated basis (-)
The amount of assets of subsidiaries that are included in the scope of the leverage
ratio on a consolidated basis (except those included in the total assets reported in
the consolidated balance sheet)
The amount of assets that are deducted from the total assets reported in the
consolidated balance sheet (except adjustment items) (-)
The amount of adjustment items pertaining to Tier1 capital (-)
Total on-balance sheet exposures
(a)
160,371,631
183,442,585
—
—
23,070,954
514,287
159,857,344
Exposures related to derivative transactions (2)
4
5
6
7
8
9
10
11
Replacement cost associated with derivatives transactions, etc.
Add-on amount associated with derivatives transactions, etc.
The amount of receivables arising from providing cash margin in relation to
derivatives transactions, etc..
The amount of receivables arising from providing cash margin, provided where
deducted from the consolidated balance sheet pursuant to the operative accounting
framework
The amount of deductions of receivables (out of those arising from providing cash
variation margin) (-)
The amount of client-cleared trade exposures for which a bank or bank holding
company acting as clearing member is not obliged to make any indemnification
(-)
Adjusted effective notional amount of written credit derivatives
The amount of deductions from effective notional amount of written credit
derivatives (-)
Total exposures related to derivative transactions
(b)
4
Exposures related to repo transactions (3)
12
13
14
15
16
The amount of assets related to repo transactions, etc
The amount of deductions from the assets above (line 12) (-)
The exposures for counterparty credit risk for repo transactions, etc
The exposures for agent repo transaction
The Total exposures related to repo transactions, etc.
5
Exposures related to off-balance sheet transactions (4)
17
18
6
Leverage ratio on a consolidated basis (5)
19
Notional amount of off-balance sheet transactions
The amount of adjustments for conversion in relation to off-balance sheet
transactions (-)
Total exposures related to off-balance sheet transactions
20
21
22
8
The amount of capital (Tier1 capital)
Total exposures ((a)+(b)+(c)+(d))
Leverage ratio on a consolidated basis ((e)/(f))
(c)
7,282,545
56,677,029
38,217,588
18,459,440
8,528,626
191,316,401
4.45%
(d)
(e)
(f)
2,197,309
3,322,792
615,854
—
615,854
491,723
294,754
5,717,070
7,223,495
—
59,050
224
012_0800885852708.indd 224
2015/08/07 10:21:56
SMFGSMFG 2015Capital Ratio Information ■ 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, 2015
1,911,845
298,339
216,396
312,779
128,754
6,569,083
118,027
10,938
424,438
213,958
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)
27,326,202
47,619
Description
FY ended March 31, 2015
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.
012_0800885852708.indd 225
2015/08/07 10:21:56
SMFG 2015
225
SMFGCapital Ratio Information Capital Ratio Information (Consolidated)
Sumitomo Mitsui Banking Corporation and Subsidiaries
■ Capital Structure Information (Consolidated Capital Ratio (International Standard))
Basel III
Template No.
Items
Common Equity Tier 1 capital: instruments and reserves
1a+2-1c-26
Directly issued qualifying common share capital plus related capital surplus and retained
earnings
1a
2
1c
26
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
1b Stock acquisition rights to common shares
6,697,893
4,278,414
2,751,080
—
331,601
—
—
3 Accumulated other comprehensive income and other disclosed reserves
5 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)
770,967 1,156,451
163,992
7,344
7,344
6,426,054
4,278,391
2,468,427
—
320,763
—
—
169,261
158,494
26,782
26,782
677,046
(Millions of yen, except percentages)
Year ended March 31, 2015
Amounts
excluded
under
transitional
arrangements
Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
6 Common Equity Tier 1 capital: instruments and reserves
(A)
7,640,198
6,780,594
Common Equity Tier 1 capital: regulatory adjustments
8+9 Total intangible assets (excluding those relating to mortgage servicing rights)
8
9
10
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)
11 Net deferred losses on hedges
12 Shortfall of eligible provisions to expected losses
13 Gain on sale on securitization transactions
14 Gains and losses due to changes in own credit risk on fair valued liabilities
15 Net defined benefit asset
16 Investments in own shares (excluding those reported in the Net assets section)
17 Reciprocal cross-holdings in common equity
18
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)
19+20+21 Amount exceeding the 10% threshold on specified items
19
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)
20
21
22 Amount exceeding the 15% threshold on specified items
23
24
25
27
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
175,288
92,138
83,149
262,932
138,208
124,724
88,561
51,629
36,931
354,245
206,519
147,726
1,048
1,572
1,235
4,940
(10,225)
887
18,683
2,597
99,911
55
—
(15,338)
1,330
28,025
3,896
149,866
83
—
(11,497)
—
8,136
1,106
14,937
15
—
(45,991)
—
32,545
4,424
59,750
61
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
28 Common Equity Tier 1 capital: regulatory adjustments
(B)
288,245
102,493
Common Equity Tier 1 capital (CET1)
29 Common Equity Tier 1 capital (CET1) ((A)-(B))
(C)
7,351,952
6,678,100
226
012_0800885852708.indd 226
2015/08/07 10:21:56
SMBCSMFG 2015
Basel III
Template No.
Items
Additional Tier 1 capital: instruments
31a
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as equity under applicable accounting standards and the breakdown
31b Stock acquisition rights to Additional Tier 1 instruments
30
32
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
34-35 Adjusted minority interests, etc. (amount allowed to be included in group Additional Tier 1)
33+35
Eligible Tier 1 capital instruments subject to transitional arrangements included in Additional
Tier 1 capital: instruments
33
35
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
36 Additional Tier 1 capital: instruments
Additional Tier 1 capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments
38 Reciprocal cross-holdings in Additional Tier 1 instruments
(D)
39
40
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
of which: goodwill and others
of which: gain on sale on securitization transactions
of which: amount equivalent to 50% of shortfall of eligible provisions to expected losses
42
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover
deductions
43 Additional Tier 1 capital: regulatory adjustments
Additional Tier 1 capital (AT1)
44 Additional Tier 1 capital ((D)-(E))
Tier 1 capital (T1 = CET1 + AT1)
45 Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))
Tier 2 capital: instruments and provisions
(E)
(F)
(Millions of yen, except percentages)
Year ended March 31, 2015
Amounts
excluded
under
transitional
arrangements
Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
—
—
—
—
25,321
860,796
860,796
—
68,648
68,648
954,766
—
—
—
—
—
—
—
13,846
824,074
824,074
—
5,423
5,423
843,344
—
—
—
—
—
—
—
—
—
63,453
95,180
31,729
126,916
131,540
102,850
28,025
665
—
194,994
759,772
179,796
147,250
32,545
—
—
211,525
631,819
(G)
8,111,724
7,309,919
46
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
48-49 Adjusted minority interests, etc. (amount allowed to be included in group Tier 2)
47+49
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)
47
49
50 Total of general reserve for possible loan losses and eligible provisions included in Tier 2
50a
50b
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
51 Tier 2 capital: instruments and provisions
(H)
—
—
374,988
—
2,359
1,424,169
1,424,169
—
9,848
9,848
—
671,467
651,680
19,787
2,482,833
—
—
—
—
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
012_0800885852708.indd 227
2015/08/07 10:21:57
SMFG 2015 227
227
SMFG 2015
SMBCSMBCCapital Ratio Information
Basel III
Template No.
Items
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments
53 Reciprocal cross-holdings in Tier 2 instruments
54
55
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
57 Tier 2 capital: regulatory adjustments
Tier 2 capital (T2)
58 Tier 2 capital (T2) ((H)-(I))
Total capital (TC = T1 + T2)
(Millions of yen, except percentages)
Year ended March 31, 2015
Amounts
excluded
under
transitional
arrangements
Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
—
—
—
—
—
—
—
—
—
—
—
—
50,000
75,000
25,000
100,000
95,379
95,379
145,379
(I)
139,896
139,896
164,896
(J)
2,337,454
1,989,543
59 Total capital (TC = T1 + T2) ((G) + (J))
(K)
10,449,179
9,299,462
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: net defined benefit asset
of which: significant investments in Additional Tier 1 capital of Other Financial Institutions
(net of eligible short positions)
of which: significant investments in the Tier 2 capital of Other Financial Institutions (net of
eligible short positions)
60 Risk weighted assets
Capital ratio (consolidated)
132,839
25,478
32,903
52,936
17,835
119,239
13,457
5,422
70,582
20,068
(L)
58,277,062
54,418,600
61 Common Equity Tier 1 risk-weighted capital ratio (consolidated) ((C)/(L))
62 Tier 1 risk-weighted capital ratio (consolidated) ((G)/(L))
63 Total risk-weighted capital ratio (consolidated) ((K)/(L))
Regulatory adjustments
72
73
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)
74 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)
75
Provisions included in Tier 2 capital: instruments and provisions
76 Provisions (general reserve for possible loan losses)
77 Cap on inclusion of provisions (general reserve for possible loan losses)
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal
ratings-based approach (prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
Capital instruments subject to transitional arrangements
82 Current cap on Additional Tier 1 instruments subject to transitional arrangements
83
Amount excluded from Additional Tier 1 due to cap (excess over cap after redemptions and
maturities)
12.61%
13.91%
17.93%
691,075
748,706
—
6,443
9,848
22,831
—
299,355
866,500
—
12.27%
13.43%
17.08%
666,349
463,953
—
182,664
10,179
22,830
25,367
279,517
990,286
—
84 Current cap on Tier 2 instruments subject to transitional arrangements
85 Amount excluded from Tier 2 due to cap (excess over cap after redemptions and maturities)
1,424,169
44,040
1,627,622
126,725
Items
Required capital ((L) ✕ 8%)
228228
(Millions of yen)
Year ended March 31, 2015 Year ended March 31, 2014
4,662,165
4,353,488
012_0800885852708.indd 228
2015/08/07 10:21:57
SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2015)
Sumitomo Mitsui Banking Corporation 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
39,569,276
1,326,965
746,431
6,447,116
4,128,907
7,364,988
1
29,559,334
75,119,565
1,907,667
252,213
3,422,970
1,073,206
454,584
367,953
68,265
6,289,881
(540,134)
177,559,197
101,503,889
14,032,798
5,873,123
991,860
7,833,219
3,352,662
5,636,406
8,223,808
1,110,822
545,700
5,663,566
718,133
5,098,781
59,893
2,567
12,641
759
1,798
20,870
632
755
514,070
34,550
6,289,881
167,523,193
1,770,996
2,717,421
2,751,080
(210,003)
7,029,494
1,756,894
(27,049)
38,943
114,413
44,216
1,927,419
198
1,078,891
10,036,003
177,559,197
6-a
2-b, 6-b
6-c
2-a
3
4-a
6-d
8
4-b
4-c
1-a
1-b
1-c
1-d
5
7-a
7-b
3
SMFG 2015 229
229
SMFG 2015
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
012_0800885852708.indd 229
2015/08/07 10:21:57
SMBCSMBCCapital Ratio Information (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
2,717,421
2,751,080
(210,003)
7,029,494
Amount
7,029,494
4,278,414
2,751,080
—
—
(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) 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
454,584
29,559,334
82,257
98,622
(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
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
230,346
207,873
—
—
—
—
Amount
367,953
118,175
Amount
249,777
(Millions of yen)
(Millions of yen)
Remarks
Remarks
1a
2
1c
31a
Ref. No.
2-a
2-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
Basel III Template
No.
15
230230
012_0800885852708.indd 230
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SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information 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
68,265
514,070
34,550
98,622
118,175
(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)
2,620
6,443
—
—
6,443
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
(27,049)
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
(25,563)
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
7,364,988
29,559,334
75,119,565
5,636,406
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
012_0800885852708.indd 231
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SMFG 2015 231
231
SMFG 2015
SMBCSMBCCapital Ratio Information (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
8. Other capital instruments
(1) Consolidated balance sheet
Consolidated balance sheet items
Borrowed money
(2) Composition of capital
139
139
—
—
—
—
—
—
691,075
—
—
—
691,075
1,032,340
—
—
158,633
125,000
748,706
Amount
198
1,078,891
Amount
163,992
—
25,321
—
2,359
Amount
8,223,808
(Millions of yen)
(Millions of yen)
Remarks
Remarks
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as liabilities under applicable
accounting standards
Directly issued qualifying Tier 2 instruments plus related capital
surplus of which: classified as liabilities under applicable accounting
standards
—
374,988
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
Ref. No.
7-a
7-b
Basel III Template
No.
5
30-31ab-32
34-35
46
48-49
Ref. No.
8
Basel III Template
No.
32
46
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.
232232
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SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information ■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2014)
Sumitomo Mitsui Banking Corporation 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
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
SMFG 2015 233
233
SMFG 2015
Note: The regulatory scope of consolidation is the same as the accounting scope of consolidation.
012_0800885852708.indd 233
2015/08/07 10:21:57
SMBCSMBCCapital Ratio Information (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
—
—
(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) 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
(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
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
(Millions of yen)
(Millions of yen)
Remarks
Remarks
1a
2
1c
31a
Ref. No.
2-a
2-b
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
Basel III Template
No.
15
234234
012_0800885852708.indd 234
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SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information 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
012_0800885852708.indd 235
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SMFG 2015 235
235
SMFG 2015
SMBCSMBCCapital Ratio Information (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.
236236
012_0800885852708.indd 236
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SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information ■ Composition of Leverage Ratio
Corresponding line # on
Basel III disclosure
template (Table2)
Corresponding line # on
Basel III disclosure
template (Table1)
On-balance sheet exposures (1)
Item
(In million yen, %)
As of March 31,
2015
As of March 31,
2014
1a
1b
1c
1d
1
2
3
1
2
7
3
7
On-balance sheet exposures before deducting adjustment items
Total assets reported in the consolidated balance sheet
The amount of assets of subsidiaries that are not included in the scope of the
leverage ratio on a consolidated basis (-)
The amount of assets of subsidiaries that are included in the scope of the leverage
ratio on a consolidated basis (except those included in the total assets reported in
the consolidated balance sheet)
The amount of assets that are deducted from the total assets reported in the
consolidated balance sheet (except adjustment items) (-)
The amount of adjustment items pertaining to Tier1 capital (-)
Total on-balance sheet exposures
(a)
155,497,153
177,559,197
—
—
22,062,043
340,643
155,156,510
Exposures related to derivative transactions (2)
4
5
6
7
8
9
10
11
Replacement cost associated with derivatives transactions, etc.
Add-on amount associated with derivatives transactions, etc.
The amount of receivables arising from providing cash margin in relation to
derivatives transactions, etc.
The amount of receivables arising from providing cash margin, provided where
deducted from the consolidated balance sheet pursuant to the operative accounting
framework
The amount of deductions of receivables (out of those arising from providing cash
variation margin) (-)
The amount of client-cleared trade exposures for which a bank acting as clearing
member is not obliged to make any indemnification (-)
Adjusted effective notional amount of written credit derivatives
The amount of deductions from effective notional amount of written credit
derivatives (-)
Total exposures related to derivative transactions
(b)
4
Exposures related to repo transactions (3)
12
13
14
15
16
The amount of assets related to repo transactions, etc
The amount of deductions from the assets above (line 12) (-)
The exposures for counterparty credit risk for repo transactions, etc
The exposures for agent repo transaction
The Total exposures related to repo transactions, etc.
5
Exposures related to off-balance sheet transactions (4)
17
18
6
Leverage ratio on a consolidated basis (5)
19
Notional amount of off-balance sheet transactions
The amount of adjustments for conversion in relation to off-balance sheet
transactions (-)
Total exposures related to off-balance sheet transactions
20
21
22
8
The amount of capital (Tier1 capital)
Total exposures ((a)+(b)+(c)+(d))
Leverage ratio on a consolidated basis ((e)/(f))
(c)
7,252,547
51,113,302
34,046,090
17,067,211
8,111,724
185,207,669
4.37%
(d)
(e)
(f)
2,208,431
3,326,000
615,854
—
615,854
491,723
294,754
5,731,400
7,193,548
—
58,999
012_0800885852708.indd 237
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SMFG 2015 237
237
SMFG 2015
SMBCSMBCCapital Ratio Information Capital Ratio Information (Nonconsolidated)
Sumitomo Mitsui Banking Corporation
■ Capital Structure Information (Nonconsolidated Capital Ratio (International Standard))
Basel III
Template No.
Items
Common Equity Tier 1 capital: instruments and reserves
1a+2-1c-26
Directly issued qualifying common share capital plus related capital surplus and retained
earnings
1a
2
1c
26
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
1b Stock acquisition rights to common shares
3 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
(Millions of yen, except percentages)
Year ended March 31, 2015 Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
Amounts
excluded
under
transitional
arrangements
6,038,295
4,042,266
2,327,629
—
331,601
—
—
651,493
—
5,859,721
4,042,266
2,138,218
—
320,763
—
—
179,267
—
977,239
717,069
6 Common Equity Tier 1 capital: instruments and reserves
(A)
6,689,788
6,038,989
Common Equity Tier 1 capital: regulatory adjustments
8+9 Total intangible assets (excluding those relating to mortgage servicing rights)
8
9
10
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)
11 Net deferred losses on hedges
12 Shortfall of eligible provisions to expected losses
13 Gain on sale on securitization transactions
14 Gains and losses due to changes in own credit risk on fair valued liabilities
15 Prepaid pension cost
16 Investments in own shares (excluding those reported in the Net assets section)
17 Reciprocal cross-holdings in common equity
18
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)
19+20+21 Amount exceeding the 10% threshold on specified items
19
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)
20
21
22 Amount exceeding the 15% threshold on specified items
23
24
25
27
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
54,502
—
54,502
81,753
—
81,753
23,497
—
23,497
93,991
—
93,991
—
—
—
—
(49,439)
25,304
18,683
—
79,484
—
—
(74,159)
37,957
28,025
—
119,226
—
—
(10,324)
7,659
8,136
—
29,201
—
—
(41,299)
30,639
32,545
—
116,806
—
—
—
—
2,040
2,040
3,060
3,060
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
28 Common Equity Tier 1 capital: regulatory adjustments
(B)
130,575
58,170
Common Equity Tier 1 capital (CET1)
29 Common Equity Tier 1 capital (CET1) ((A)-(B))
(C)
6,559,212
5,980,818
238
012_0800885852708.indd 238
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SMBCSMFG 2015
Basel III
Template No.
Items
Additional Tier 1 capital: instruments
31a
Directly issued qualifying Additional Tier 1 instruments plus related capital surplus of which:
classified as equity under applicable accounting standards and the breakdown
31b Stock acquisition rights to Additional Tier 1 instruments
30
32
33+35
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
36 Additional Tier 1 capital: instruments
Additional Tier 1 capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments
38 Reciprocal cross-holdings in Additional Tier 1 instruments
(D)
39
40
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
of which: gain on sale on securitization transactions
of which: amount equivalent to 50% of shortfall of eligible provisions to expected losses
42
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover
deductions
43 Additional Tier 1 capital: regulatory adjustments
Additional Tier 1 capital (AT1)
44 Additional Tier 1 capital ((D)-(E))
Tier 1 capital (T1 = CET1 + AT1)
45 Tier 1 capital (T1 = CET1 + AT1) ((C)+(F))
Tier 2 capital: instruments and provisions
(Millions of yen, except percentages)
Year ended March 31, 2015 Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
Amounts
excluded
under
transitional
arrangements
—
—
—
—
860,796
(210)
(210)
860,586
—
—
—
—
824,074
(735)
(735)
823,339
—
—
—
—
—
—
—
—
—
—
—
—
63,692
95,538
31,846
127,384
47,003
28,025
18,978
—
110,695
749,890
47,865
32,545
15,319
—
79,711
743,627
(E)
(F)
(G)
7,309,102
6,724,445
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
46
47+49
50 Total of general reserve for possible loan losses and eligible provisions included in Tier 2
50a
50b
of which: general reserve for possible loan losses
of which: eligible provisions
—
—
376,262
—
—
—
—
—
1,412,068
1,613,792
—
—
—
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
51 Tier 2 capital: instruments and provisions
654,063
637,394
16,668
2,442,394
(H)
—
—
—
477,926
455,620
22,306
2,091,719
SMFG 2015 239
239
SMFG 2015
012_0800885852708.indd 239
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SMBCSMBCCapital Ratio Information
Basel III
Template No.
Items
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments
53 Reciprocal cross-holdings in Tier 2 instruments
54
55
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
57 Tier 2 capital: regulatory adjustments
Tier 2 capital (T2)
58 Tier 2 capital (T2) ((H)-(I))
Total capital (TC = T1 + T2)
(Millions of yen, except percentages)
Year ended March 31, 2015 Year ended March 31, 2014
Amounts
excluded
under
transitional
arrangements
Amounts
excluded
under
transitional
arrangements
—
—
—
—
—
—
—
—
—
—
—
—
50,000
75,000
25,000
100,000
18,978
18,978
68,978
(I)
15,319
15,319
40,319
(J)
2,373,415
2,051,399
59 Total capital (TC = T1 + T2) ((G) + (J))
(K)
9,682,518
8,775,845
Risk weighted assets
Total of items included in risk weighted assets subject to transitional arrangements
of which: prepaid pension cost
of which: significant investments in Additional Tier 1 capital of Other Financial Institutions (net
of eligible short positions)
60 Risk weighted assets
Capital ratio
61 Common Equity Tier 1 risk-weighted capital ratio ((C)/(L))
62 Tier 1 risk-weighted capital ratio ((G)/(L))
63 Total risk-weighted capital ratio ((K)/(L))
Regulatory adjustments
72
73
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)
74 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)
75
Provisions included in Tier 2 capital: instruments and provisions
76 Provisions (general reserve for possible loan losses)
77 Cap on inclusion of provisions (general reserve for possible loan losses)
78
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal
ratings-based approach (prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
Capital instruments subject to transitional arrangements
82 Current cap on Additional Tier 1 instruments subject to transitional arrangements
83
Amount excluded from Additional Tier 1 due to cap (excess over cap after redemptions and
maturities)
252,584
25,797
183,151
377,653
10,405
338,806
(L)
51,232,836
47,940,672
12.80%
14.26%
18.89%
524,368
734,569
—
—
—
2,386
—
278,163
866,150
—
12.47%
14.02%
18.30%
569,683
475,035
—
77,942
—
2,363
—
258,200
989,886
—
84 Current cap on Tier 2 instruments subject to transitional arrangements
85 Amount excluded from Tier 2 due to cap (excess over cap after redemptions and maturities)
1,412,068
60,062
1,613,792
128,412
Items
Required capital ((L) ✕ 8%)
(Millions of yen)
Year ended March 31, 2015 Year ended March 31, 2014
4,098,626
3,835,253
240240
012_0800885852708.indd 240
2015/08/07 10:21:58
SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information
■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2015)
Sumitomo Mitsui Banking Corporation
Items
(Assets)
Cash and due from banks
Call loans
Receivables under resale agreements
Receivables under securities borrowing transactions
Monetary claims bought
Trading assets
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
(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)
37,008,665
539,916
417,473
2,012,795
1,047,498
3,627,862
29,985,267
68,274,308
1,798,843
2,460,344
812,383
200,966
293,082
6,721,131
(394,140)
(82,321)
154,724,079
91,337,714
14,022,064
4,579,940
350,010
5,113,896
2,551,652
2,754,739
8,096,070
1,172,969
25,000
5,095,577
717,529
3,672,970
13,738
644
1,119
19,589
444,863
34,141
6,721,131
146,725,363
1,770,996
2,481,273
2,327,186
(210,003)
6,369,453
1,726,573
(124,906)
27,593
1,629,261
7,998,715
154,724,079
6-a
6-c
2
3
6-d
4-a
4-b
1-a
1-b
1-d
012_0800885852708.indd 241
2015/08/07 10:21:58
SMFG 2015 241
241
SMFG 2015
SMBCSMBCCapital Ratio Information 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
Borrowed money
Retained earnings
Net deferred losses 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)
29,971,688
7,226,652
2,327,629
(125,084)
1,628,732
6-b
7
1-c
5
3
242242
012_0800885852708.indd 242
2015/08/07 10:21:58
SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information (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
2,327,629
(210,003)
6,369,896
Amount
6,369,896
4,042,266
2,327,629
—
—
(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
200,966
64,711
(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
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
—
136,255
—
—
—
—
Amount
293,082
94,372
Amount
198,710
(Millions of yen)
(Millions of yen)
Remarks
Remarks
1a
2
1c
31a
Ref. No.
2
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
Basel III Template
No.
15
SMFG 2015 243
243
SMFG 2015
012_0800885852708.indd 243
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SMBCSMBCCapital Ratio Information 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
444,863
34,141
64,711
94,372
(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)
—
—
—
—
—
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
(125,084)
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
(123,598)
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
3,627,862
29,971,688
68,274,308
2,754,739
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
244244
012_0800885852708.indd 244
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SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information (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. Other capital instruments
(1) Balance sheet
Balance sheet items
Borrowed money
(2) Composition of capital
—
—
—
—
—
—
—
—
524,368
—
—
—
524,368
1,023,901
5,101
—
159,230
125,000
734,569
Amount
7,226,652
(Millions of yen)
Remarks
(Millions of yen)
Composition of capital disclosure
Amount
Remarks
Directly issued qualifying Additional Tier 1 instruments plus related
capital surplus of which: classified as liabilities under applicable
accounting standards
Directly issued qualifying Tier 2 instruments plus related capital
surplus of which: classified as liabilities under applicable accounting
standards
—
376,262
16
37
52
17
38
53
18
39
54
72
19
23
40
55
73
Ref. No.
7
Basel III Template
No.
32
46
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.
012_0800885852708.indd 245
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SMFG 2015 245
245
SMFG 2015
SMBCSMBCCapital Ratio Information ■ Reconciliation of Regulatory Capital Elements Back to the Balance Sheet (Year ended March 31, 2014)
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
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
(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
246246
012_0800885852708.indd 246
2015/08/07 10:21:58
SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information 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 losses 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
012_0800885852708.indd 247
2015/08/07 10:21:58
SMFG 2015 247
247
SMFG 2015
SMBCSMBCCapital Ratio Information (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
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
(Millions of yen)
(Millions of yen)
Remarks
Remarks
1a
2
1c
31a
Ref. No.
2
Basel III Template
No.
8
9
20
24
74
Ref. No.
3
Basel III Template
No.
15
248248
012_0800885852708.indd 248
2015/08/07 10:21:58
SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information 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
012_0800885852708.indd 249
2015/08/07 10:21:58
SMFG 2015 249
249
SMFG 2015
SMBCSMBCCapital Ratio Information (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.
250250
012_0800885852708.indd 250
2015/08/07 10:21:58
SMBCSMFG 2015SMBCSMFG 2015Capital Ratio Information 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 internal
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 tangi-
ble 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.
SMFG 2015
251
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SMFGCapital Ratio Information 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
unexpected 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.
252
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SMFGSMFG 2015Capital Ratio Information 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, 2014 to March 31, 2015)
1
2
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.
013_0800885852708.indd 253
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SMFG 2015
253
SMFG ■ Assessment of Design and Operation of Compensation Structure
Compensation Policy
(1) For Officers
SMFG has designed its compensation system for officers in accordance with its management plan based on its vision for the next decade
of becoming a global financial group that, by earning the highest trust of our customers, leads the growth of Japan and the Asian region
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 assessment of business results for the fiscal year and the performance status of job responsibilities in the short term as well as the
medium to long term for individual officers. 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.
254
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SMFGSMFG 2015Compensation ■ 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, 2014 to March 31, 2015)
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 ��������
14
96
1,062
7,997
882
4,064
769
3,979
106
83
7
2
175
3,661
175
3,661
6
—
—
272
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥189 million in deferred compensation accrued during the fiscal year (officers: ¥106 million; employees and others: ¥83
million).
3. The total amount of variable compensation includes ¥709 million in deferred compensation accrued during the fiscal year (officers: ¥- million; employees and others: ¥709
million).
4. Stock options are classified as fixed compensation because the number of stock options granted depends on the individual’s position.
5. The exercise period of stock option is shown in the table below.
Under the stock option agreement, the exercise of stock options is deferred until the retirement date, regardless of the exercise period:
Company name
1st series of stock acquisition rights of SMFG ���������������������������
Stock option rights exercise period
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
5th series of stock acquisition rights of SMFG ���������������������������
August 15, 2014 to August 14, 2044
6. Payment of the following compensation, including the above, has been deferred:
Type of compensation, etc�
1st series of stock acquisition rights of SMFG ����������������������������
March 31, 2015
77
Payment during the fiscal year
—
2nd series of stock acquisition rights of SMFG ��������������������������
3rd series of stock acquisition rights of SMFG ���������������������������
4th series of stock acquisition rights of SMFG ���������������������������
133
180
145
—
—
—
Millions of yen
■ Other Information Regarding Compensation Structures of SMFG and its Group Companies
Not applicable
013_0800885852708.indd 255
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SMFG 2015
255
SMFGCompensation 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, 2014 to March 31, 2015)
1
2
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.
256
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SMBCSMFG 2015 ■ Assessment of Design and Operation of Compensation Structure
Compensation Policy
(1) For Officers
SMBC has designed its compensation system for officers in accordance with SMFG’s management plan based on its vision for the next
decade of becoming a global financial group that, by earning the highest trust of our customers, leads the growth of Japan and the Asian
region 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 assessment of business results for the fiscal year and the performance status of job responsibilities in the short term as well as the
medium to long term for individual officers. 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.
013_0800885852708.indd 257
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SMFG 2015
257
SMBCCompensation ■ 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, 2014 to March 31, 2015)
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
88
1,633
7,281
1,345
3,489
1,190
3,473
148
15
7
1
288
3,521
288
3,521
—
—
—
272
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥163 million in deferred compensation accrued during the fiscal year (officers: ¥148 million; employees and others: ¥15
million).
3. The total amount of variable compensation includes ¥709 million in deferred compensation accrued during the fiscal year (officers: ¥- million; employees and others: ¥709
million).
4. Stock options are classified as fixed compensation because the number of stock options granted depends on the individual’s position.
5. The exercise period of stock option is shown in the table below.
Under the stock option agreement, the exercise of stock options is deferred until the retirement date, regardless of the exercise period:
Company name
1st series of stock acquisition rights of SMFG ����������������������������
Stock option rights exercise period
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
5th series of stock acquisition rights of SMFG ���������������������������
August 15, 2014 to August 14, 2044
6. Payment of the following compensation, including the above, has been deferred:
Millions of yen
Type of compensation, etc�
1st series of stock acquisition rights of SMFG ����������������������������
March 31, 2015
67
Payment during the fiscal year
—
2nd series of stock acquisition rights of SMFG ��������������������������
3rd series of stock acquisition rights of SMFG ���������������������������
4th series of stock acquisition rights of SMFG ���������������������������
105
191
135
—
—
—
2. Total Amount of Compensation Paid to Officers, Employees and Others (SMBC non-consolidated, April 1, 2014 to March 31, 2015)
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
74
1,633
5,950
1,345
2,951
1,190
2,936
148
15
7
0
288
2,727
288
2,727
—
—
—
272
Notes: 1. Compensation amount includes those amounts of major consolidated subsidiaries.
2. The total amount of fixed compensation includes ¥163 million in deferred compensation accrued during the fiscal year (officers: ¥148 million; employees and others: ¥15
million).
3. The total amount of variable compensation includes ¥509 million in deferred compensation accrued during the fiscal year (officers: ¥- million; employees and others: ¥509
million).
4. Stock options are classified as fixed compensation because the number of stock options granted depends on the individual’s position.
5. The exercise period of stock option is shown in the table below.
Under the stock option agreement, the exercise of stock options is deferred until the retirement date, regardless of the exercise period:
Company name
1st series of stock acquisition rights of SMFG ����������������������������
Stock option rights exercise period
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
5th series of stock acquisition rights of SMFG ���������������������������
August 15, 2014 to August 14, 2044
6. Payment of the following compensation, including the above, has been deferred:
Millions of yen
Type of compensation, etc�
1st series of stock acquisition rights of SMFG ����������������������������
March 31, 2015
67
Payment during the fiscal year
—
2nd series of stock acquisition rights of SMFG ��������������������������
3rd series of stock acquisition rights of SMFG ���������������������������
4th series of stock acquisition rights of SMFG ���������������������������
105
191
135
—
—
—
■ Other Information Regarding Compensation Structures of SMFG and its Group Companies
Not applicable
258
013_0800885852708.indd 258
2015/08/03 13:08:04
SMBCSMFG 2015Compensation Corporate Data
Sumitomo Mitsui Financial Group, Inc.
■ Board of Directors, Corporate Auditors, and Executive Officers (as of June 30, 2015)
BOARD OF DIRECTORS
Masayuki Oku
Chairman of the Board
Koichi Miyata
President
Takeshi Kunibe
Director
Yujiro Ito
Director General Affairs Dept., Human Resources Dept.
Kozo Ogino
Director Audit Dept.
Toshiyuki Teramoto
Director Corporate Risk Management Dept.
Jun Ohta
Director
Public Relations Dept., Corporate Planning Dept.,
Financial Accounting Dept., Subsidiaries & Affiliates Dept.
Katsunori Tanizaki
Director IT Planning Dept.
Yoshinori Yokoyama
Director (outside)
Kuniaki Nomura
Director (outside)
Arthur M. Mitchell
Director (outside)
Masaharu Kohno
Director (outside)
■ SMFG Organization (as of June 30, 2015)
Eriko Sakurai
Director (outside)
CORPORATE AUDITORS
Koichi Minami
Corporate Auditor
Kazuhiko Nakao
Corporate Auditor
Toru Mikami
Corporate Auditor
Ikuo Uno
Corporate Auditor (outside)
Satoshi Itoh
Corporate Auditor (outside)
Rokuro Tsuruta
Corporate Auditor (outside)
EXECUTIVE OFFICERS
Nobuaki Kurumatani
Deputy President Securities Business Dept.
Yasuyuki Kawasaki
Senior Managing Director Global Business Planning Dept.
Yukihiko Onishi
Senior Managing Director
Consumer Business Planning Dept.,
Consumer Finance & Transaction Business Dept.
Masayuki Shimura
Senior Managing Director Transaction Business Planning Dept.
Shareholders’
Meeting
Board of Directors
Auditing Committee
Risk Management Committee
Compensation Committee
Nominating Committee
Group Strategy
Committee
Management
Committee
Corporate Auditors/
Board of Corporate
Auditors
Office of Corporate Auditors
Public Relations Dept.
Corporate Planning Dept.
Investor Relations Dept.
Group CSR Dept.
Financial Accounting Dept.
Equity Portfolio Management Dept.
IT Planning Dept.
Human Resources Dept.
General Affairs Dept.
Group Cost Control Dept.
Corporate Risk Management Dept.
Risk Management Information 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.
259
SMFG 2015 Sumitomo Mitsui Banking Corporation
* Executive Officers
■ Board of Directors, Corporate Auditors, and Executive Officers (as of June 30, 2015)
BOARD OF DIRECTORS
Chairman of the Board
Teisuke Kitayama
President and CEO
Takeshi Kunibe*
Director
Koichi Miyata
Vice Chairman of the Board
Shuichi Kageyama
Located at Osaka
Deputy Presidents
Yujiro Ito*
Human Resources Dept., Human Resources Development Dept.,
Quality Management Dept., General Affairs Dept., Legal Dept.,
Administrative Services Dept.
Seiichiro Takahashi*
Head of Treasury Unit
Nobuaki Kurumatani*
Head of Investment Banking Unit
Securities Business 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
Senior Managing Directors
Kozo Ogino*
Internal Audit Dept., Credit Review Dept.
Human Resources Dept., Human Resources Development Dept.
Toshiyuki Teramoto*
Risk Management Unit (Corporate Risk Management Dept., Credit &
Investment Planning Dept.)
Jun Ohta*
Public Relations Dept., Corporate Planning Dept., Financial
Accounting Dept., Subsidiaries & Affiliates Dept.
Yasuyuki Kawasaki*
Co-Head of International Banking Unit (Planning Dept., International
Banking Unit, Emerging Markets Business Division, Asia Pacific, East
Asia)
Katsunori Tanizaki*
IT Planning Dept., Operations Planning Dept., Operations Support
Dept., Inter-Market Settlement Dept.
Yukihiko Onishi*
Head of Retail Banking Unit
Directors (outside)
Shigeru Iwamoto
Masayuki Matsumoto
Yuko Nakahira
CORPORATE AUDITORS
Makoto Hiura
Corporate Auditor
Mitsuru Ono
Corporate Auditor
Hiroshi Takahashi
Corporate Auditor (outside)
260
Katsuyoshi Shinbo
Corporate Auditor (outside)
Masaaki Oka
Corporate Auditor (outside)
Koichi Minami
Corporate Auditor (part-time)
EXECUTIVE OFFICERS
Senior Managing Directors
Atsuhiko Inoue
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
Deputy Head of Wholesale Banking Unit (Strategic Corporate
Business Dept.)
Fumiaki Kurahara
Co-Head of Wholesale Banking Unit, Head of Global Corporate Banking Division
Makoto Takashima
Co-Head of International Banking Unit (Europe, Middle East and
Africa, Americas)
Masayuki Shimura
Transaction Business Division
Managing Directors
Hitoshi Ishii
Deputy Head of Retail Banking Unit, Wholesale Banking Unit
Head of Small and Medium Enterprises Banking Division
Takehisa Ikeda
Deputy Head of Wholesale Banking Unit (in charge of East Japan)
Head of Higashinihon Daiichi Middle Market Banking Division
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)
Head of Chushikoku Middle Market Banking Division
Noboru Rachi
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts.
II, III, X, and XII)
Koichi Noda
Head of The Americas Division
Shosuke Mori
Head of The Asia Pacific Division and Emerging Markets Business Division
Masahiko Oshima
Head of Europe, Middle East and Africa Division
CEO of Sumitomo Mitsui Banking Corporation Europe Limited
Naoki Ono
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts. I,
VIII, IX, and XI)
Kimio Matsuura
Tokyo Corporate Banking Division (Tokyo Corporate Banking Depts.
IV, V, VI and VII)
Toshikazu Yaku
General Affairs Dept., Legal Dept., Administrative Services Dept.,
Quality Management Dept.
Ryohei Kaneko
Deputy Head of Retail Banking Unit (in charge of East Japan)
Hajime Kunisaki
Deputy Head of Retail Banking Unit (in charge of West Japan)
SMFG 2015
Hisanori Kokuga
Deputy Head of International Banking Unit, Wholesale Banking Unit (in charge of East Asia)
Global Advisory Dept.
Chairman of Sumitomo Mitsui Banking Corporation (China) Limited
Atsushi Oku
Deputy Head of Retail Banking Unit (in charge of East Japan)
Naoki Tamura
(Special Appointive Director)
Toshihiro Isshiki
General Manager, Operations Planning Dept.
Haruyuki Nagata
General Manager, Financial Accounting Dept.
Ryuji Nishisaki
Deputy Head of Emerging Markets Business Division
Akihiro Fukutome
Nagoya Corporate Banking Division (Nagoya Corporate Banking Dept.)
Head of Nagoya Middle Market Banking Division
Hiroshi Munemasa
Deputy Head of Treasury Unit
Directors
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)
Toshikazu Takeichi
Head of Kobe Middle Market Banking Division
Mitsuhiro Akiyama
General Manager, Tokyo Corporate Banking Dept. XI
Keiji Kakumoto
Head of Kyoto Hokuriku Middle Market Banking Division and General
Manager, Kyoto Corporate Business Office-I
Atsushi Takada
Head of Osaka Daini Middle Market Banking Division
Hitoshi Minami
General Manager, Tokyo Corporate Banking Dept. III
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
Head of Shibuya Middle Market Banking Division and Yokohama
Middle Market Banking Division
Eiji Omori
Head of Shinjuku Middle Market Banking Division and Saitama
Ikebukuro Middle Market Banking Division
Noburu Kato
General Manager, Investment Banking Dept., Asia
Toshiyuki Tatsuta
President of Sumitomo Mitsui Banking Corporation (China) Limited
Kenichi Hosomi
General Manager, Planning Dept., International Banking Unit
Tetsuro Imaeda
General Manager, Singapore Branch
Nobuyuki Kawabata
General Manager, Planning Dept., Americas Division
Toru Sawada
General Manager, General Affairs Dept.
Kengo Nakagawa
Head of Osaka Daiichi Middle Market Banking Division
Toru Nakashima
General Manager, Corporate Planning Dept.
Teiko Kudo
Unit Leader, Growth Industry Cluster Dept.
William Karl
General Manager, Real Estate Finance Dept., Americas Division
Stanislas Roger
Deputy Head of Europe, Middle East and Africa Division,
General Manager, Maritime Asset Finance Dept., Europe,
Middle East and Africa Division and Co-General Manager, Global
Aircraft Finance Department
Kiyoshi Kageyama
Deputy Head of Wholesale Banking Unit (Credit Dept. II, Wholesale
Banking Unit)
Deputy Head of Retail Banking Unit (Credit Dept., Retail Banking Unit)
Yozo Takigawa
Deputy Head of International Banking Unit (Credit Depts., Americas
Division and Europe, Middle East and Africa Division, Asia Pacific
Division, Credit Management Dept., International Banking Unit)
Ryo Suzuki
Deputy Head of The Americas Division and General Manager, Finance
Strategy Dept., Americas Division
Toshiaki Nakai
General Manager, Credit & Investment Planning Dept.
Takashi Arima
General Manager, Tokyo Corporate Banking Dept. VIII
Iwao Kawaharada
Head of Kyushu Middle Market Banking Division and General
Manager, Fukuoka Corporate Business Office
Fumiharu Kozuka
General Manager, Corporate Credit Dept.
Hiroyoshi Korosue
Country Head of Thailand and General Manager, Bangkok Branch
Masaaki Sasai
Deputy Head of Europe, Middle East and Africa Division
Eiichi Sekiguchi
General Manager, Planning Dept., Wholesale Banking Unit
Reiji Domoto
General Manager, Osaka Corporate Banking Dept. l
Nobuyuki Nakatsuji
Deputy Head of Retail Banking Unit (in charge of West Japan)
Deputy Head of Wholesale Banking Unit (in charge of West Japan)
Deputy Head of Small and Medium Enterprises Banking Division
Yusuke Hirako
General Manager, Tokyo Corporate Banking Dept. VII
Narumitsu Yoshioka
General Manager, Seoul Branch and Global Korea Corporate Banking
Department
Rie Asayama
General Manager, Quality Management Dept.
Akira Ueda
General Manager, Tokyo Corporate Banking Dept. IV
Muneo Kanamaru
General Manager, Human Resources Dept.
Masamichi Koike
General Manager, Trading Dept.
Hideo Goto
General Manager, Planning Dept., Investment Banking Unit
Toshihiro Sato
General Manager, Planning Dept., Treasury Unit
Rajeev Kannan
General Manager, Structured Finance Dept.
Isaac Deutsch
General Manager, Specialized Finance Dept., Americas Division
John Ferreira
Deputy Head of The Asia Pacific Division
261
SMFG 2015 Small and Medium Enterprises Banking Division
Area Main Office
Branch
*5
Corporate Banking Division
Middle Market Banking Division
*4
*6
Global Corporate Banking Division
Tokyo Corporate Banking Division
Osaka Corporate Banking Division
Nagoya Corporate Banking Division
Americas Division
Europe, Middle East and Africa Division
Asia Pacific Division
Consumer Loan Promotion Office
Loan Promotion Office
Loan Support Office
Business Support Office
Private Banking Dept.
Remote marketing Dept.
Call Center
Consumer Finance Promotion Office
Global Transaction Office*7
E-Transaction Business Center*7
Business Promotion Office*1
Corporate Business Office
Financial Development Office
Credit Business Office
Real Estate Corporate Business Office
Public Institutions Business Office
Global Transaction Office*7
E-Transaction Business Center*7
Corporate Banking Dept.
Business Promotion Office *1
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 East Asia
Departments of Americas Division
Departments of Europe,
Middle East and Africa Division
Branches/Representative Offices
in Asia Pacific Division
Global Transaction Office*7
E-Transaction Business Center*7
■ SMBC Organization (as of June 30, 2015)
Shareholders’
Meeting
Board of
Directors
Management
Committee
Corporate Auditors/
Corporate Auditors/
Board of Corporate Auditors
Board of Corporate Auditors
Office of Corporate Auditors
262
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.
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.
AML Planning Dept.
Financial Crime Prevention 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
Planning Dept., Retail Banking Unit
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 Consulting Dept., Retail Banking Unit
Retail Marketing Dept., Retail Banking Unit
Area Support Dept.
IT Strategy Dept.
Loan Dept.
Area Support Dept.
Loan Business Promotion Dept.
Consumer Finance & Transaction
Business Dept., Retail Banking Unit.
Credit Dept., Retail Banking Unit
Strategic Corporate Business Dept.*1
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.*2
Corporate Credit Dept.
Structured Finance Credit Dept.
Credit Dept. I, Wholesale Banking Unit
Credit Dept. II, Wholesale Banking Unit
Credit Administration Dept.
Strategic Corporate Business Dept.*1
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, Middle East and Africa Division
Legal and Compliance Dept., Europe,
Middle East and Africa Division
Credit Dept., Europe, Middle East and Africa Division
Global Aircraft Credit Dept.
Risk Management Dept., Europe, Middle East and Africa Division
Planning Dept., Asia Pacific Division
Legal and Compliance Dept., Asia Pacific Division
Credit Dept., Asia Pacific Division
Risk Management Dept., Asia Pacific Division
Emerging Markets Business Division
Corporate Solutions Dept., Asia*8
Credit Management Dept., International Banking Unit
Credit Dept., East Asia, International Banking Unit
Environment Analysis Dept., International Banking Unit
Planning Dept., Treasury Unit
Treasury Dept.
International Treasury Dept.
Trading Dept.
Treasury Marketing Dept.
Treasury Dept., Asia Pacific Division
Planning Dept., Investment Banking Unit
Syndication Dept.
Growth Industry Cluster Dept.*3
Structured Finance Dept.
Shipping Finance Dept.
Global Securities Business Dept.
Financial Solution Dept.
Real Estate Finance Dept.*2
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
Corporate Solutions Dept., Asia *8
*1 Belongs to both Retail Banking Unit and Wholesale Banking Unit.
*2 Belongs to both Investment Banking Unit and Wholesale Banking Unit.
*3 Belongs to both Investment Banking Unit and Wholesale Banking Unit. (Corporate Advisory Division)
*4 • Corporate Advisory Division
• Advisory Dept. I
• Advisory Dept. II
• Advisory Dept. III
• Corporate Research Dept.
• Growth Industry Cluster Dept.*3
*5 • Private Advisory Division
• Private Advisory Business Dept.
• Testamentary Trust Dept.
• Private Banking Planning Dept.
• Corporate Employees Business Dept.
• Defined Contribution Dept.
*6 • Transaction Business Division
• Transaction Business Planning Dept.
• Asset Finance Dept.
• Transaction Banking Dept.
• Global Transaction Banking Dept.
• Global Advisory Dept.
• Global Business Promotion Dept.
• Global Transaction Support Dept.
• Foreign Exchange Insourcing Business Dept.
*7 • Belongs to Retail Banking Unit, Wholesale Banking Unit and International Banking Unit.
*8 • Belongs to both International Banking Unit and Investment Banking Unit.
Branch Service Office
Head/Main Service Office
Public Institutions Operations Office
Souzoku-office Sub-Branch
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.
Testamentary Trust Dept.
Private Banking Planning 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.*3
SMFG 2015 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.
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.
AML Planning Dept.
Financial Crime Prevention 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
Planning Dept., Retail Banking Unit
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 Consulting Dept., Retail Banking Unit
Area Support Dept.
Retail Marketing Dept., Retail Banking Unit
IT Strategy Dept.
Loan Dept.
Area Support Dept.
Loan Business Promotion Dept.
Consumer Finance & Transaction
Business Dept., Retail Banking Unit.
Credit Dept., Retail Banking Unit
Strategic Corporate Business Dept.*1
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.*2
Corporate Credit Dept.
Structured Finance Credit Dept.
Credit Dept. I, Wholesale Banking Unit
Credit Dept. II, Wholesale Banking Unit
Credit Administration Dept.
Strategic Corporate Business Dept.*1
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, Middle East and Africa Division
Legal and Compliance Dept., Europe,
Middle East and Africa Division
Credit Dept., Europe, Middle East and Africa Division
Global Aircraft Credit Dept.
Risk Management Dept., Europe, Middle East and Africa Division
Planning Dept., Asia Pacific Division
Legal and Compliance Dept., Asia Pacific Division
Credit Dept., Asia Pacific Division
Risk Management Dept., Asia Pacific Division
Emerging Markets Business Division
Corporate Solutions Dept., Asia*8
Credit Management Dept., International Banking Unit
Credit Dept., East Asia, International Banking Unit
Environment Analysis Dept., International Banking Unit
Planning Dept., Treasury Unit
Treasury Dept.
International Treasury Dept.
Trading Dept.
Treasury Marketing Dept.
Treasury Dept., Asia Pacific Division
Planning Dept., Investment Banking Unit
Syndication Dept.
Growth Industry Cluster Dept.*3
Structured Finance Dept.
Shipping Finance Dept.
Global Securities Business Dept.
Financial Solution Dept.
Real Estate Finance Dept.*2
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
Corporate Solutions Dept., Asia *8
Shareholders’
Meeting
Board of
Directors
Management
Committee
Corporate Auditors/
Corporate Auditors/
Board of Corporate Auditors
Board of Corporate Auditors
Office of Corporate Auditors
Small and Medium Enterprises Banking Division
Area Main Office
*5
Corporate Banking Division
Middle Market Banking Division
*4
*6
Global Corporate Banking Division
Tokyo Corporate Banking Division
Osaka Corporate Banking Division
Nagoya Corporate Banking Division
Americas Division
Europe, Middle East and Africa Division
Asia Pacific Division
Branch
Consumer Loan Promotion Office
Loan Promotion Office
Loan Support Office
Business Support Office
Private Banking Dept.
Remote marketing Dept.
Call Center
Consumer Finance Promotion Office
Global Transaction Office*7
E-Transaction Business Center*7
Business Promotion Office*1
Corporate Business Office
Financial Development Office
Credit Business Office
Real Estate Corporate Business Office
Public Institutions Business Office
Global Transaction Office*7
E-Transaction Business Center*7
Corporate Banking Dept.
Business Promotion Office *1
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 East Asia
Departments of Americas Division
Departments of Europe,
Middle East and Africa Division
Branches/Representative Offices
in Asia Pacific Division
Global Transaction Office*7
E-Transaction Business Center*7
*1 Belongs to both Retail Banking Unit and Wholesale Banking Unit.
*2 Belongs to both Investment Banking Unit and Wholesale Banking Unit.
*3 Belongs to both Investment Banking Unit and Wholesale Banking Unit. (Corporate Advisory Division)
*4 • Corporate Advisory Division
• Advisory Dept. I
• Advisory Dept. II
• Advisory Dept. III
• Corporate Research Dept.
• Growth Industry Cluster Dept.*3
*5 • Private Advisory Division
• Private Advisory Business Dept.
• Testamentary Trust Dept.
• Private Banking Planning Dept.
• Corporate Employees Business Dept.
• Defined Contribution Dept.
*6 • Transaction Business Division
• Transaction Business Planning Dept.
• Asset Finance Dept.
• Transaction Banking Dept.
• Global Transaction Banking Dept.
• Global Advisory Dept.
• Global Business Promotion Dept.
• Global Transaction Support Dept.
• Foreign Exchange Insourcing Business Dept.
*7 • Belongs to Retail Banking Unit, Wholesale Banking Unit and International Banking Unit.
*8 • Belongs to both International Banking Unit and Investment Banking Unit.
Branch Service Office
Head/Main Service Office
Public Institutions Operations Office
Souzoku-office Sub-Branch
263
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.
Testamentary Trust Dept.
Private Banking Planning 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.*3
SMFG 2015 Principal Subsidiaries and Affiliates (as of March 31, 2015)
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
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
JAIS, Limited
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 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 Loan Business Service Co., Ltd.
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
27,550
187,720
49,859
7,438
7,700
71,705
2,054
450
10
500
1,100
1,600
100,010
1,000
500
100
90
10
10
100
30
30
20
70
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
(46.43) 45.09 (1.33)
Sep. 6, 1949
Commercial banking
(60.17)
49.37 (0.35)
Jul. 1, 1922
Commercial banking
(100)
(100)
100
(100)
(51)
(100)
100
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)
(100)
(40)
—
100
Oct. 16, 1990
System engineering and data processing
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)
(100)
(100)
(100)
(100)
(100)
(100)
100
100
100
100
100
100
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
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
Sep. 24, 1976
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
264
SMFG 2015 ■ 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
JSC 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.
SMBC Cayman LC Limited*
SMBC MVI SPC
SMBC DIP Limited
SFVI Limited
SMBC, S.A.P.I. DE C.V.,
SOFOM, E.N.R.
Ireland
U.S.A.
U.S.A.
U.K.
U.S.A.
U.S.A.
Cayman Islands
Cayman Islands
Cayman Islands
British Virgin Islands
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
Mexico
MXN360 million
SMBC International Finance N.V.
Curaçao
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
¥268,400 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
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)
100
Mar. 13, 1990
Derivatives and investments,
securities services
90
(10)
Dec. 4, 1986
Derivatives
100
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
Sep. 18, 2014
Money lending business
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
* 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.
265
SMFG 2015 Company Name
Country
Issued Capital
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
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
Issued Capital
(Millions of Yen)
Percentage of
SMFG’s Voting
Rights (%)
Percentage of
SMBC’s Voting
Rights (%)
Date of
Establishment or
Investment
Main Business
37,250
Rp116,805
million
0
0
0
0
0
0
0
0
0
0
(41.16)
41.16
Sep. 19, 2000
Commercial banking
(40.00)
40.00
Feb. 5, 1958
Commercial banking
(15.07)
15.07
May 24, 1989
Commercial banking
(17.42)
17.42
Nov. 14, 1918
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
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.
■ Principal Affiliates
Company Name
The Japan Net Bank, Limited
PT Bank Tabungan Pensiunan Nasional Tbk
Vietnam Export Import Commercial Joint Stock
Bank
VND12,526.947
billion
The Bank of East Asia, Limited
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
HKD33,068
million
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
266
SMFG 2015 International Directory (as of June 30, 2015)
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
Labuan Branch
Kuala Lumpur Office
Suite 22-03, Level 22, Integra Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2176-1700
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
Hanoi Branch
Unit 1201, 12th Floor, Lotte Center
Hanoi, 54 Lieu Giai Street, Cong
Vi Ward, Ba Dinh District, Hanoi,
Vietnam
Tel: 84 (4) 3946-1100
Yangon Branch
Level #5 Strand Square, No.53
Strand Road, Pabedan Township,
Yangon, Myanmar
Tel: 95 (1) 2307380
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
Perth Branch
Level 19, Exchange Tower,
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
Bilimoria Mehta and Company,
903, Indraprakash Building 21,
Barakhamba Road Connaught
Place, Delhi – 110001, India
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
267
SMFG 2015 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
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.
Jend. 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
Suite 22-03, Level 22, Integra Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2176-1500
SMBC SSC Sdn. Bhd.
Level 21, Integra Tower,
The Intermark, 348, Jalan Tun Razak,
50400 Kuala Lumpur, Malaysia
Tel: 60 (3) 2176-1600
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
The Bank of East Asia, Limited
10 Des Voeux Road, Central,
Hong Kong
Tel: 852-3608-3608
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
8th Floor, Vincom Center Building,
72 Le Thanh Ton 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. Jend.
Sudirman Kav. 61-62, Jakarta
12190, Indonesia
Tel: 62 (21) 252-3711
BSL Leasing Co., Ltd.
19th Floor, Sathorn City Tower,
175 South Sathorn Road,
Thungmahamek, Sathorn,
Bangkok, 10120, Thailand
Tel: 66 (2) 670-4700
268
SMFG 2015 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,
Singapore 189721
Tel: 65-6224-2955
Sumitomo Mitsui Finance and
Leasing (Hong Kong) Ltd.
Unit 4206-8,42/F, Sunlight Tower,
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
Shanghai Sumitomo Mitsui
Finance and Leasing Co., Ltd.
Room 723, 7/F, No. 6 Ji Long Rd,
China (Shanghai) Pilot Free Trade
Zone, Shanghai 200131,
The People’s Republic of China
Tel: 86 (21) 5065-6052
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 (Karol Bagh Side),
E-1 Block, Videocon Tower,
Jhandewalan Extension, New Delhi,
India
Tel: 91 (11) 4828-8300
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 10477, R.O.C.
Tel: 886 (2) 2515-1598
PROMISE (THAILAND) CO., LTD.
12th, 15th, 22nd 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
269
SMFG 2015 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, 400010,
The People’s Republic of China
Tel: 86 (23) 6037-5200
PROMISE (CHENGDU) CO., LTD.
Level 18, Minyoun Financial Plaza,
No.35 Zidong Section Dongda Street,
Jinjiang District, Chengdu, 610061,
The People’s Republic of China
Tel: 86 (28) 6528-5000
PROMISE (WUHAN) CO., LTD.
14F, Block A, Pingan International
Financial Building, 216 Gongzheng
Road, Wuchang, Wuhan, Hubei,
430000, The People’s Republic of
China
Tel: 86 (27) 8711-6300
PROMISE (SHANGHAI) CO., LTD.
Room 03-10, Floor 14, China
Insurance Building No.166, East
Lujiazui Road, Pudong New Area,
Shanghai 200120, The People’s
Republic of China
Tel: 86 (21) 2066-6262
PROMISE ASSET MANAGEMENT
(TAIWAN) CO., LTD.
8F No.6, Sec 3, Min Chuan E. Rd.,
Taipei, Taiwan 10477, R.O.C.
Tel: 886 (2) 2515-6369
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., Mexico
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, S.A.P.I. DE C.V., SOFOM, E.N.R.
Torre Altiva Boulevard Manuel Avila
Camacho 138 Piso 2, Loc. B Lomas
de Chapultepec, 11000 Mexico,
D.F., Mexico
Tel: 52 (55) 2623-1373
SMBC Nikko Securities America,
Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-5300
270
SMFG 2015 JRI America, Inc.
277 Park Avenue, New York,
NY 10172, U.S.A.
Tel: 1 (212) 224-4200
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
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
Office No.801, Makeen Tower,
Al Zahiyah, Abu Dhabi, United Arab
Emirates
Tel: 971 (2) 495-4000
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
Sumitomo Mitsui Banking
Corporation Europe Limited
Madrid Branch
Villanueva, 12-1. B, 28001 Madrid,
Spain
Tel: 34 (91) 576-6196
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
JSC 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
271
SMFG 2015 *SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
*SMBCE:Sumitomo Mitsui Banking Corporation Europe Limited
Overseas service network (as of June 30, 2015)
Overseas service network (as of June 30, 2015)
Total: 70
Total: 70
(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
JSC Sumitomo Mitsui Rus Bank
JSC 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
SMBCE* Madrid Branch
SMBCE* Madrid Branch
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
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.
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
The Bank of East Asia, Limited
The Bank of East Asia, Limited
Hong Kong Branch
Hong Kong Branch
SMBC Capital Markets (Asia) Limited
SMBC Capital Markets (Asia) Limited
Yangon Branch
Yangon Branch
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
Banco Sumitomo Mitsui Brasileiro S.A.
Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Cayman Branch
Cayman Branch
Cayman Branch
Mexico City Representative Office
Mexico City Representative Office
SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
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
■ SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
■ SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
■ 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
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Madrid Branch
Europe Limited Madrid Branch
■ Düsseldorf Branch
■ Düsseldorf Branch
■ JSC Sumitomo Mitsui Rus Bank
■ JSC 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
■ The Bank of East Asia, Limited
■ Taipei Branch
■ Seoul Branch
■ Ulaanbaatar Representative Office
■ Singapore Branch
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Labuan Branch
■ The Bank of East Asia, Limited
■ 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 Branch
■ Yangon Branch
■ 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
272
SMFG 2015 *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
JSC Sumitomo Mitsui Rus Bank
JSC Sumitomo Mitsui Rus Bank
SMBCE* Madrid Branch
SMBCE* Madrid Branch
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
■ 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
■ 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
Changshu Sub-Branch
Changshu Sub-Branch
Shanghai Puxi Sub-Branch
Shanghai Puxi Sub-Branch
■ 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
■ Sumitomo Mitsui Banking Corporation (China) Limited
■ Sumitomo Mitsui Banking Corporation (China) Limited
Tianjin Binhai Sub-Branch
Tianjin Binhai Sub-Branch
Kunshan Sub-Branch
Kunshan Sub-Branch
■ Hong Kong Branch
■ Hong Kong Branch
SMBC Capital Markets (Asia) Limited
SMBC Capital Markets (Asia) Limited
■ The Bank of East Asia, Limited
■ The Bank of East Asia, Limited
■ Taipei Branch
■ Taipei Branch
■ Seoul Branch
■ Seoul Branch
■ Ulaanbaatar Representative Office
■ Ulaanbaatar Representative Office
■ Singapore Branch
■ Singapore Branch
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Sumitomo Mitsui Banking Corporation Malaysia Berhad
■ Labuan Branch
■ Labuan Branch
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 Branch
■ Yangon Branch
■ 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, 2015)
Overseas service network (as of June 30, 2015)
Total: 70
Total: 70
(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
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
The Bank of East Asia, Limited
The Bank of East Asia, Limited
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
Houston Representative Office
Houston Representative Office
Cayman Branch
Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Cayman Branch
Banco Sumitomo Mitsui Brasileiro S.A.
Cayman Branch
Mexico City Representative Office
SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
Mexico City Representative Office
SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
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 Delhi Branch
New Delhi Branch
Yangon Branch
Yangon Branch
Bangkok Branch
SBCS Co., Limited
Bangkok Branch
SBCS Co., Limited
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
■ 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
■ SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
■ SMBC, S.A.P.I. DE C.V., SOFOM, E.N.R.
■ 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
■ Sumitomo Mitsui Banking Corporation
■ Sumitomo Mitsui Banking Corporation
Europe Limited Madrid Branch
Europe Limited Madrid Branch
■ Düsseldorf Branch
■ Düsseldorf Branch
■ Brussels Branch
■ Brussels Branch
■ JSC Sumitomo Mitsui Rus Bank
■ JSC 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
273
SMFG 2015 www.smfg.co.jp/english
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