Sumitomo Mitsui Financial Group (8316) Q1 2026 earnings summary

Executive summary

• Consolidated gross profit rose year-over-year, driven by higher domestic loan and deposit income, strong payment business, and increased fee income in domestic wholesale.

• Ordinary income for the quarter was ¥2,444.4 billion, down 3.1% year-over-year; ordinary profit fell 7.2% to ¥483.3 billion.

• Profit attributable to owners of parent rose 1.5% to ¥376.9 billion compared to the same quarter last year.

• EPS increased to ¥97.46 from ¥94.36 year-over-year, reflecting a three-for-one stock split.

• Progress rates for both consolidated business profit and bottom-line profit reached 29%, with no material impact yet from anticipated U.S. tariffs.

Financial highlights

• Consolidated gross profit: JPY 1,087.8bn (+57.9bn YoY); net business profit: JPY 544.3bn (+75.5bn YoY); profit attributable to owners: JPY 376.9bn (+5.5bn YoY).

• Net interest income increased to ¥626.3 billion, up ¥102.1 billion year-over-year.

• Overhead ratio improved to 55.1% (down 2.4% YoY) despite inflation and higher variable costs.

• Total credit cost increased to JPY 75.6bn (+46.4bn YoY), controlled in line with full-year forecast.

• Ordinary profit declined to ¥483.3 billion from ¥520.9 billion year-over-year.

Outlook and guidance

• Full-year profit attributable to owners of parent is forecast at ¥1,300.0 billion, up 10.4% from the previous year.

• Estimated negative impact of JPY 100bn from U.S. tariffs has not materialized; full-year forecasts remain unchanged.

• Rising interest rates could add up to JPY 200bn in profit, with JPY 40bn realized in 1Q.

• Forecasted EPS for the fiscal year ending March 2026 is ¥338.00.

• Dividend forecast remains unchanged, with annual cash dividends per share reflecting the stock split.