Sumitomo Mitsui Financial Group (8316) IR Day 2024 summary

Medium-term management plan and financial guidance

• Targets ROCET1 of 10% for wholesale, 8% for retail, 8% for global, and 15% for global markets by FY3/26, with most FY3/24 results already exceeding initial targets.

• Net business profit targets for FY3/26: JPY 570 bn (wholesale), JPY 245 bn (retail), JPY 585 bn (global), JPY 340 bn (global markets).

• RWA growth planned across all segments, with global aiming for +JPY 3.9 tn over three years.

• Overhead ratios are improving, with retail aiming for early 70% by FY3/29 and global maintaining cost control despite growth investments.

• Focus on stable revenue structure by accelerating deposit growth and increasing fee-based AUM.

Strategic initiatives and business development

• Wholesale is strengthening group expertise, digital sales, and high ROE business portfolios, with increased risk-taking in PE and real estate.

• Retail is expanding the Olive platform, hybrid digital-real channels, and payment/consumer finance, targeting 12 million Olive accounts in five years.

• Global is driving growth via multi-franchise strategy in Asia, collaboration with Jefferies, and new businesses like Jenius Bank in the U.S.

• Global Markets is enhancing risk-taking, dynamic portfolio management, and global S&T collaboration, with a focus on stable foreign currency funding.

• Group-wide, there is a strong push for digitalization, operational efficiency, and cross-segment collaboration to drive growth and productivity.

Social value creation and sustainability

• Sustainable finance initiatives are accelerating, with cumulative targets and new products supporting decarbonization and transition finance.

• Financial literacy programs and NISA account growth are outpacing the market, supporting the shift from savings to investment.

• Wealth management leadership is reinforced by fee-based AUM growth, digital tools like Nikko PRM Prime, and diversified currency offerings.

• DE&I targets include increasing the ratio of female managers to 30% by FY3/26 and 35% by FY3/31.

• Social impact is furthered through microfinance, elder programs, and enhanced security and fraud prevention measures.