Sumitomo Mitsui Financial Group (8316) Investor Presentation summary

Our vision and growth strategy

• Aims to be a trusted global solution provider, supporting customer growth and societal advancement through integrity, passion, and solidarity.

• Pursues opportunities for growth amid improving domestic and resilient overseas economies, while proactively managing risks from market volatility and global uncertainties.

• Focuses on digital transformation, asset-light business models, and dynamic reallocation of management resources to high-growth areas.

• Accelerates reduction of equity holdings and unprofitable assets, shifting resources to IT and growth sectors.

Financial performance and targets

• Achieved record-high consolidated net business profit and bottom-line profit, driven by strong retail and wholesale business units.

• Targets FY3/25 bottom-line profit exceeding JPY 1 trillion, with continued growth in core earnings and favorable business environment.

• Five-year goal to reach ROE of 9% and bottom-line profits well above JPY 1 trillion, supported by disciplined capital allocation and cost control.

• Net interest income expected to rise by JPY 100 bn due to BOJ policy changes, with 70% contributing to FY3/25.

• Overhead ratio improved, credit costs well managed, and strong progress in Medium-Term Management Plan initiatives.

Enhancing corporate value and capital policy

• Focuses on improving ROE, RORA, and PBR through bottom-line growth, asset-light businesses, and cost control.

• Dynamic reallocation of business portfolio to improve capital efficiency, with capital shifted to strategic growth areas and reduction of equity holdings.

• Progressive dividend policy with a 40% payout ratio, largest-ever DPS increase to JPY 330/share, and flexible share buybacks up to JPY 100 bn.

• CET1 ratio target maintained at around 10%, balancing financial soundness, shareholder returns, and growth investments.

• Increased IT investment and human capital development to accelerate digitalization, governance, and operational efficiency.