Sumitomo Mitsui Financial Group (8316) Q2 2026 earnings summary

Executive summary

• Full-year net income forecast raised to JPY 1.5 trillion, a 27% year-over-year increase, with ROE expected to reach 10% ahead of the FY3/29 target.

• Ordinary profit rose 24.0% to JPY 1,278,123 million, and profit attributable to owners of parent increased 28.7% YoY to JPY 933,505 million.

• Comprehensive income surged to JPY 1,030,170 million, up 175.5% year-over-year.

• Dividend per share increased to JPY 157 (up JPY 35 YoY), and additional share buybacks of JPY 150 billion approved, totaling JPY 250 billion for FY3/26.

• Strong business performance across core segments, with notable gains from the sale of Kotak shares and reversal of allowances.

Financial highlights

• 1H FY3/26 net income rose by JPY 208.3 billion (+28% YoY) to JPY 933.5 billion; gross profit up JPY 253.5 billion.

• Net business profit increased by JPY 229.8 billion (+25% YoY); ordinary profit up JPY 247.7 billion.

• ROE (including OCI) improved to 12.5% (+2.7% YoY).

• EPS for the period was JPY 242.03, reflecting a three-for-one stock split.

• Net assets as of September 30, 2025, were JPY 15,304,259 million, with a net assets ratio of 5.0%.

Outlook and guidance

• Full-year net income forecast upgraded by JPY 200 billion to JPY 1.5 trillion (+27% YoY); forecasted EPS for the full year is JPY 390.39.

• Dividend payout ratio set at 40% of revised net income; total payout ratio at 56%.

• Share buybacks to reach JPY 250 billion for FY3/26.

• Dividend forecast was revised upward in May 2025.