Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

Table of Contents

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024

Commission File Number 001-34919

SUMITOMO MITSUI FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:		Form 20-F ☒		Form 40-F ☐

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF SUMITOMO MITSUI FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-276219) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED, EXCEPT FOR THE STATEMENTS REGARDING OUR EARNINGS FORECAST UNDER THE CAPTIONS “3. EARNINGS FORECAST ON A CONSOLIDATED BASIS (FOR THE FISCAL YEAR ENDING MARCH 31, 2025)” AND “(2) EARNINGS FORECAST FOR THE FISCAL YEAR ENDING MARCH 31, 2025 (FISCAL 2024).”

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Sumitomo Mitsui Financial Group, Inc.

By:		/s/ Jun Okahashi
		Name: Jun Okahashi
		Title:  Executive Officer & General Manager,        Financial Accounting Dept.

Date:  May 15, 2024

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Sumitomo Mitsui Financial Group, Inc.

 

		May 15, 2024
		Sumitomo Mitsui Financial Group, Inc.
		Consolidated financial results for the fiscal year ended March 31, 2024
		<Under Japanese GAAP>

 

Head office: 1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan

Stock exchange listings: Tokyo Stock Exchange, Nagoya Stock Exchange, New York Stock Exchange

URL: https://www.smfg.co.jp/english/

President: Toru Nakashima

Date of ordinary general meeting of shareholders: June 27, 2024 Date of payment of year-end dividends: June 28, 2024

Annual securities report (Yukashoken hokokusho) issuing date: June 21, 2024

Investors meeting presentation for financial results: Scheduled

 

Note: Amounts less than one million yen have been rounded down.

1. Consolidated financial results (for the fiscal year ended March 31, 2024)

 

 

(1) Operating results

(Millions of yen, except per share data and percentages)

		Ordinary income								Ordinary profit								Profit attributable to    owners of parent
Fiscal year ended March 31, 2024		¥	9,353,590				52.3	%		¥	1,466,128				26.3	%		¥	962,946				19.5	%
Fiscal year ended March 31, 2023			6,142,155				49.4				1,160,930				11.6				805,842				14.0

 

Notes:		1.		Comprehensive income:
				(a) for the fiscal year ended March 31, 2024: ¥2,629,723 million [154.9%] (b) for the fiscal year ended March 31, 2023: ¥1,031,712 million [83.6%]
		2.		Percentages shown in ordinary income, ordinary profit, profit attributable to owners of parent and comprehensive income are the increase (decrease) from the previous fiscal year.

 

		Earnings per share				Earnings per   share  (Diluted)		Return on net assets		Ordinary profit on total assets		Ordinary profit  on ordinary income
Fiscal year ended March 31, 2024		¥	724.55			¥ 724.34		7.0%		0.5%		15.7%
Fiscal year ended March 31, 2023			590.46			590.26		6.5		0.4		18.9

  Note:   Equity in gains (losses) of affiliates:

  (a) for the fiscal year ended March 31, 2024: ¥71,986 million   (b) for the fiscal year ended March 31, 2023: ¥55,461 million

 

(2) Financial position		(Millions of yen, except per share data and percentages)
		Total assets		Net assets		Net assets ratio		Net assets per share
As of March 31, 2024		¥ 295,236,701		¥  14,799,967		5.0%		¥   11,157.36
As of March 31, 2023		270,428,564		12,791,106		4.7		9,430.52

 

Notes:		1.		Stockholders’ equity:
				(a) as of March 31, 2024: ¥14,660,110 million (b) as of March 31, 2023: ¥12,680,465 million
		2.		Net assets ratio = {(Net assets – Stock acquisition rights – Non-controlling interests) / Total assets} X 100

 

(3) Cash flows		(Millions of yen)
		Cash flows from   operating activities		Cash flows from  investing activities		Cash flows from   financing activities		Cash and cash  equivalents at  year-end
Fiscal year ended March 31, 2024		¥    642,862		¥   (918,904)		¥   280,693		¥  66,380,330
Fiscal year ended March 31, 2023		(5,895,185)		5,931,059		(357,778)		65,864,248

 

2. Dividends on common stock		(Millions of yen, except per share data and percentages)
		Cash dividends per share										Total  dividends   (annual)		Dividend  payout  ratio		Ratio of dividends to net assets
		1st   quarter		2nd   quarter		3rd   quarter		4th   quarter		Annual
Fiscal year
ended March 31, 2023		¥ —		¥115		¥ —		¥125		¥240		¥325,768		40.4%		2.6%
ended March 31, 2024		—		135		—		135		270		357,481		37.1		2.6
ending March 31, 2025 forecast/Before considering the stock split		—		165		—		165		330				40.5
(forecast/After considering the stock split)		—		165		—		55		—				40.5

 

Notes:		1.		At the Board of Directors held on May 15, 2024, the Company resolved to conduct a three for one split of the Company’s common stock on the record date of September 30, 2024.
		2.		Dividend payout ratio = (Total dividends on common stock / Profit attributable to owners of parent) X 100 At the Board of Directors held on May 15, 2024, the Company resolved to repurchase its own shares, and dividend payout ratio for the fiscal year ending March 31, 2025 (forecast) is taking into account the impact of the repurchase of its own shares.
		3.		Ratio of dividends to net assets = Total dividends on common stock / {(Beginning balance of Stockholders’ equity + Ending balance of Stockholders’ equity) / 2}X 100

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Sumitomo Mitsui Financial Group, Inc.

3. Earnings forecast on a consolidated basis (for the fiscal year ending March 31, 2025)

 

		(Millions of yen, except per share data and percentage)
		Profit attributable to owners of parent				Earnings per share
Fiscal year ending March 31, 2025		¥ 1,060,000		10.1%		¥ 271.34

 

 

Note:

Forecasted earnings per share is calculated by dividing forecasted profit attributable to owners of parent by the number of issued common stocks (excluding treasury stocks) as of March 31, 2024. The number of issued common stocks (excluding treasury stocks) is taking into account the impacts of the stock split and the repurchase of its own shares resolved by the Company at the Board of Directors held on May 15, 2024.

[Notes]

(1) There were no changes in material consolidated subsidiaries in the fiscal year.

(2) Changes in accounting policies, changes in accounting estimates and restatements

(a) Changes in accounting policies due to application of new or revised accounting standards		:		No
(b) Changes in accounting policies due to reasons other than above (a)		:		No
(c) Changes in accounting estimates		:		No
(d) Restatements		:		No

(3) Number of shares issued (common stocks)

		As of March 31, 2024		As of March 31, 2023
(a) Number of shares issued (including treasury stocks)		1,337,529,084 shares		1,374,691,194 shares
(b) Number of treasury stocks		23,587,866 shares		30,070,650 shares
		Fiscal year ended March 31, 2024		Fiscal year ended March 31, 2023
(c) Average number of shares issued in the year		1,329,025,818 shares		1,364,770,096 shares

Note: Number of shares used in calculating “Earnings per share” (on a consolidated basis) is reported on page 14 “(Per share data)”.

[Reference] Summary of financial information on a non-consolidated basis

Non-consolidated financial results (for the fiscal year ended March 31, 2024)

(1) Operating results												(Millions of yen, except per share data and percentages)
				Operating income				Operating profit				Ordinary profit				Net income
		Fiscal year ended March 31, 2024		¥936,815		33.5%		¥ 550,062		27.5%		¥ 539,377		28.4%		¥ 545,114		36.1%
		ended March 31, 2023		701,653		13.9		431,307		6.9		419,980		6.9		400,380		1.3
				Earnings  per share				Earnings  per share (diluted)
		Fiscal year ended March 31, 2024		¥410.16				¥410.04
		ended March 31, 2023		293.37				293.27
Note: Percentages shown in operating income, operating profit, ordinary profit and net income are the increase (decrease) from the previous fiscal year.
(2) Financial position												(Millions of yen, except per share data and percentages)
				Total assets				Net assets				Net assets ratio				Net assets per share
		As of March 31, 2024		¥ 19,745,893				¥ 6,075,333				30.8%				¥ 4,623.04
		As of March 31, 2023		17,046,916				6,060,165				35.5				4,506.12
Note: Stockholders’ equity
(a) as of March 31, 2024: ¥6,074,401 million  (b) as of March 31, 2023: ¥6,059,020 million

[Note on audit procedures]

This report is out of the scope of the audit procedures.

 

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 Sumitomo Mitsui Financial Group, Inc. (“the Company”) and its management with respect to the Company’s 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 the Company’s securities portfolio; incurrence of significant credit-related costs; the Company’s ability to successfully implement its business strategy through its subsidiaries, affiliates and alliance partners; and exposure to new risks as the Company expands the scope of its business. 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. The Company undertakes no obligation to update or revise any forward-looking statements. Please refer to the Company’s most recent disclosure documents such as its annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as its earnings press releases, for a more detailed description of the risks and uncertainties that may affect its financial conditions, its operating results, and investors’ decisions.

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Sumitomo Mitsui Financial Group, Inc.

 

Table of contents

 

I.		Operating and financial review			2
1.		Consolidated operating results for the fiscal year ended March 31, 2024 (fiscal 2023)			2
2.		Consolidated financial position as of March 31, 2024			3
II.		Basic approach to the selection of accounting standards			3
III.		Consolidated financial statements			4
1.		Consolidated balance sheets			4
2.		Consolidated statements of income and consolidated statements of comprehensive income			6
3.		Consolidated statements of changes in net assets			8
4.		Consolidated statements of cash flows			11
5.		Notes to consolidated financial statements			13
		Note on going concern			13
		Segment information			13
		Per share data			14
		Significant subsequent events			15

* Appendix: Financial results for the fiscal year ended March 31, 2024 supplementary information

 

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Sumitomo Mitsui Financial Group, Inc.

 

I. Operating and financial review

1. Consolidated operating results for the fiscal year ended March 31, 2024 (fiscal 2023)

 

(1)

Operating results

In fiscal 2023, net business profit increased by ¥283.8 billion year-on-year to ¥1,560.2 billion. The primary reasons were the recovery of the business result at SMBC Nikko Securities Inc., the strong performance of Sumitomo Mitsui Card Company, Limited. and increases in interest income from domestic and overseas loans.

Total credit cost increased by ¥63.9 billion year-on-year to ¥274.0 billion, mainly due to expanding the businesses of retail subsidiaries, recording reserve for domestic and overseas large borrowers, and recording forward-looking provisions corresponding to future business environment changes.

As a result, ordinary profit increased by ¥305.2 billion year-on-year to ¥1,466.1 billion, and profit attributable to owners of parent increased by ¥157.1 billion year-on-year to ¥962.9 billion.

 

Consolidated						(Billions of yen)
				Fiscal year ended   March 31, 2024		Change from the     fiscal year  ended     March 31, 2023
		Net business profit		¥ 1,560.2		¥ 283.8
		Gross profit		3,738.8		568.6
		General and administrative expenses		(2.250.6)		(301.3)
		Equity in gains of affiliates		72.0		16.5
		Total credit cost		(274.0)		(63.9)
		Ordinary profit		1,466.1		305.2
		Profit attributable to owners of parent		962.9		157.1
SMBC non-consolidated
		Banking profit *		¥ 901.3		¥ 85.4
		Gross banking profit		1,885.2		185.7
		Expenses (excluding non-recurring losses)		(983.9)		(100.3)
		Total credit cost		(96.3)		19.2
		Ordinary profit		1,040.5		174.7
		Net income		762.6		128.5

* Banking profit (before provision for general reserve for possible loan losses)

 

(2)

Earnings forecast for the fiscal year ending March 31, 2025 (fiscal 2024)

Earnings forecast for profit attributable to owners of parent is ¥ 1,060.0 billion.

 

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Sumitomo Mitsui Financial Group, Inc.

 

2. Consolidated financial position as of March 31, 2024

 

(1)		Assets and liabilities
		Total assets as of March 31, 2024 were ¥ 295,236.7 billion, an year-on-year increase of ¥ 24,808.1 billion. As for major account balances, loans and bills discounted increased by ¥ 8,609.8 billion to ¥ 107,013.9 billion year-on-year and deposits increased by ¥ 6,069.1 billion to ¥ 164,839.4 billion year-on-year.
(2)		Net assets
		Net assets were ¥ 14,800.0 billion, an year-on-year increase of ¥ 2,008.9 billion. Stockholders’ equity within net assets was ¥ 10,630.0 billion, an year-on-year increase of ¥ 321.6 billion after the contribution of profit attributable to owners of parent and the payment of cash dividends.
(3)		Cash flows
		The Company generated ¥ 642.9 billion in cash flows from operating activities including interest received and paid, net changes in loans and bills discounted and deposits, an year-on-year increase of ¥ 6,538.0 billion, used ¥ 918.9 billion in cash flows from investing activities including purchases and sale of securities and tangible fixed assets, an year-on-year decrease of ¥ 6,850.0 billion, and generated ¥ 280.7 billion in cash flows from financing activities including payment of dividends, an year-on-year increase of ¥ 638.5 billion. Consequently, cash and cash equivalents amounted to ¥ 66,380.3 billion, an year-on-year increase of ¥ 516.1 billion.

II. Basic approach to the selection of accounting standards

The Company selects Japanese GAAP as our accounting standards.

Since American depository receipts (ADRs) of the Company are listed on the New York Stock Exchange, the Company separately prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), and the Company is considering the possibility of application of IFRS in the future.

 

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Sumitomo Mitsui Financial Group, Inc.

 

III. Consolidated financial statements

1. Consolidated balance sheets

 

		Millions of yen
March 31		2023				2024
Assets:
Cash and due from banks		¥	75,913,960			¥	78,143,100
Call loans and bills bought			5,684,812				5,333,883
Receivables under resale agreements			5,785,945				8,525,688
Receivables under securities borrowing transactions			5,576,612				6,799,541
Monetary claims bought			5,558,287				6,103,091
Trading assets			8,751,204				11,540,063
Money held in trust			12,957				23,751
Securities			33,213,165				37,142,808
Loans and bills discounted			98,404,137				107,013,907
Foreign exchanges			1,942,764				2,068,885
Lease receivables and investment assets			226,302				207,645
Other assets			13,243,899				15,313,546
Tangible fixed assets			1,494,527				1,006,883
Assets for rent			519,308				—
Buildings			323,411				323,967
Land			412,045				405,761
Lease assets			23,317				29,892
Construction in progress			30,983				40,894
Other tangible fixed assets			185,460				206,368
Intangible fixed assets			897,848				976,706
Software			521,545				623,266
Goodwill			277,311				268,833
Lease assets			451				323
Other intangible fixed assets			98,539				84,283
Net defined benefit asset			704,654				913,791
Deferred tax assets			74,084				71,427
Customers’ liabilities for acceptances and guarantees			13,693,771				14,869,558
Reserve for possible loan losses			(750,369)				(817,578)
Total assets		¥	270,428,564			¥	295,236,701

 

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Sumitomo Mitsui Financial Group, Inc.

 

(continued)

		Millions of yen
March 31		2023				2024
Liabilities:
Deposits		¥	158,770,253			¥	164,839,357
Negotiable certificates of deposit			13,025,555				14,672,275
Call money and bills sold			2,569,055				3,138,049
Payables under repurchase agreements			16,772,716				19,625,877
Payables under securities lending transactions			1,521,271				1,736,935
Commercial paper			2,349,956				2,429,179
Trading liabilities			8,066,745				9,689,434
Borrowed money			13,674,830				14,705,266
Foreign exchanges			1,465,847				2,872,560
Short-term bonds			424,000				863,000
Bonds			10,365,003				13,120,274
Due to trust account			2,413,464				1,246,198
Other liabilities			11,923,748				15,573,044
Reserve for employee bonuses			96,254				115,488
Reserve for executive bonuses			3,307				4,411
Net defined benefit liability			35,449				37,263
Reserve for executive retirement benefits			1,133				1,179
Reserve for point service program			28,659				35,622
Reserve for reimbursement of deposits			10,845				9,228
Reserve for losses on interest repayment			128,378				121,947
Reserves under the special laws			3,902				4,631
Deferred tax liabilities			265,354				698,632
Deferred tax liabilities for land revaluation			27,952				27,316
Acceptances and guarantees			13,693,771				14,869,558
Total liabilities			257,637,458				280,436,734
Net assets:
Capital stock			2,342,537				2,344,038
Capital surplus			694,052				610,143
Retained earnings			7,423,600				7,843,470
Treasury stock			(151,798)				(167,671)
Total stockholders’ equity			10,308,391				10,629,980
Net unrealized gains (losses) on other securities			1,373,521				2,406,883
Net deferred gains (losses) on hedges			(13,293)				(65,073)
Land revaluation excess			35,005				34,936
Foreign currency translation adjustments			843,614				1,362,647
Accumulated remeasurements of defined benefit plans			133,226				290,735
Total accumulated other comprehensive income			2,372,074				4,030,129
Stock acquisition rights			1,145				931
Non-controlling interests			109,495				138,925
Total net assets			12,791,106				14,799,967
Total liabilities and net assets		¥	270,428,564			¥	295,236,701

 

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Sumitomo Mitsui Financial Group, Inc.

 

2. Consolidated statements of income and consolidated statements of comprehensive income

(Consolidated statements of income)

 

		Millions of yen
Year ended March 31		2023				2024
Ordinary income		¥	6,142,155			¥	9,353,590
Interest income			3,779,715				6,213,520
Interest on loans and discounts			2,465,859				3,636,796
Interest and dividends on securities			437,385				704,565
Interest on call loans and bills bought			76,714				207,201
Interest on receivables under resale agreements			20,232				119,755
Interest on receivables under securities borrowing transactions			34,078				87,502
Interest on deposits with banks			304,299				580,295
Interest on lease transactions			8,676				12,483
Interest on deferred payment			22,409				21,969
Other interest income			410,058				842,949
Trust fees			6,752				8,195
Fees and commissions			1,441,313				1,716,335
Trading income			120,727				371,135
Other operating income			477,892				609,082
Lease-related income			39,721				37,436
Other			438,170				571,645
Other income			315,754				435,320
Recoveries of written-off claims			16,923				16,934
Other			298,830				418,386
Ordinary expenses			4,981,224				7,887,462
Interest expenses			2,061,922				4,332,866
Interest on deposits			796,781				1,670,570
Interest on negotiable certificates of deposit			259,422				518,385
Interest on call money and bills sold			18,057				43,855
Interest on payables under repurchase agreements			275,765				749,371
Interest on payables under securities lending transactions			3,165				15,792
Interest on commercial paper			45,081				116,199
Interest on borrowed money			86,175				154,318
Interest on short-term bonds			30				210
Interest on bonds			256,862				352,806
Other interest expenses			320,579				711,354
Fees and commissions payments			222,321				234,305
Trading losses			—				263,379
Other operating expenses			371,925				348,899
Lease-related expenses			31,314				30,915
Other			340,610				317,984
General and administrative expenses			1,949,245				2,250,593
Other expenses			375,809				457,417
Provision for reserve for possible loan losses			88,272				118,388
Other			287,537				339,028
Ordinary profit			1,160,930				1,466,128

 

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Sumitomo Mitsui Financial Group, Inc.

 

(continued)

 

		Millions of yen
Year ended March 31		2023				2024
Extraordinary gains		¥	3,110			¥	8,181
Gains on disposal of fixed assets			3,110				1,101
Reversal of reserve for eventual future operating losses from financial instruments transactions			0				—
Other extraordinary gains			—				7,080
Extraordinary losses			65,569				131,959
Losses on disposal of fixed assets			6,523				9,341
Losses on impairment of fixed assets			59,045				13,696
Provision for reserve for eventual future operating losses from financial instruments transactions			—				729
Other extraordinary losses			—				108,191
Income before income taxes			1,098,472				1,342,349
Income taxes-current			222,522				442,736
Income taxes-deferred			59,625				(69,073)
Income taxes			282,148				373,662
Profit			816,324				968,687
Profit attributable to non-controlling interests			10,481				5,740
Profit attributable to owners of parent		¥	805,842			¥	962,946

(Consolidated statements of comprehensive income)

 

		Millions of yen
Year ended March 31		2023				2024
Profit		¥	816,324			¥	968,687
Other comprehensive income (losses)			215,388				1,661,035
Net unrealized gains (losses) on other securities			(252,078)				1,024,910
Net deferred gains (losses) on hedges			54,055				(49,928)
Foreign currency translation adjustments			327,919				502,786
Remeasurements of defined benefit plans			12,078				156,856
Share of other comprehensive income of affiliates			73,412				26,410
Total comprehensive income			1,031,712				2,629,723
Comprehensive income attributable to owners of parent			1,019,625				2,621,070
Comprehensive income attributable to non-controlling interests			12,087				8,653

 

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Sumitomo Mitsui Financial Group, Inc.

 

3. Consolidated statements of changes in net assets

 

		Millions of yen
		Stockholders’ equity
Year ended March 31, 2023		Capital stock				Capital surplus				Retained earnings				Treasury stock				Total
Balance at the beginning of the fiscal year		¥	2,341,878			¥	693,664			¥	6,916,468			¥	(13,402)			¥	9,938,608
Changes in the fiscal year
Issuance of new stock			658				658												1,317
Cash dividends											(301,626)								(301,626)
Profit attributable to owners of parent											805,842								805,842
Purchase of treasury stock															(138,839)				(138,839)
Disposal of treasury stock							(111)								443				332
Changes in shareholders’ interest due to transaction with non-controlling interests							(270)												(270)
Increase due to decrease in affiliates accounted for by the equity method											1,712								1,712
Reversal of land revaluation excess											1,314								1,314
Transfer from retained earnings to capital surplus							111				(111)								—
Net changes in items other than stockholders’ equity in the fiscal year
Net changes in the fiscal year			658				388				507,131				(138,396)				369,782
Balance at the end of the fiscal year		¥	2,342,537			¥	694,052			¥	7,423,600			¥	(151,798)			¥	10,308,391
		Millions of yen
		Accumulated other comprehensive income
Year ended March 31, 2023		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
Balance at the beginning of the fiscal year		¥	1,632,080			¥	(80,061)			¥	36,320			¥	450,143			¥	121,123			¥	2,159,606
Changes in the fiscal year
Issuance of new stock
Cash dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Changes in shareholders’ interest due to transaction with non-controlling interests
Increase due to decrease in affiliates accounted for by the equity method
Reversal of land revaluation excess
Transfer from retained earnings to capital surplus
Net changes in items other than stockholders’ equity in the fiscal year			(258,559)				66,768				(1,314)				393,471				12,102				212,467
Net changes in the fiscal year			(258,559)				66,768				(1,314)				393,471				12,102				212,467
Balance at the end of the fiscal year		¥	1,373,521			¥	(13,293)			¥	35,005			¥	843,614			¥	133,226			¥	2,372,074

 

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(Continued)

 

Year ended March 31, 2023		Millions of yen
		Stock acquisition rights				Non- controlling interests				Total net assets
Balance at the beginning of the fiscal year		¥	1,475			¥	97,641			¥	12,197,331
Changes in the fiscal year
Issuance of new stock											1,317
Cash dividends											(301,626)
Profit attributable to owners of parent											805,842
Purchase of treasury stock											(138,839)
Disposal of treasury stock											332
Changes in shareholders’ interest due to transaction with non-controlling interests											(270)
Increase due to decrease in affiliates accounted for by the equity method											1,712
Reversal of land revaluation excess											1,314
Transfer from retained earnings to capital surplus											—
Net changes in items other than stockholders’ equity in the fiscal year			(329)				11,854				223,991
Net changes in the fiscal year			(329)				11,854				593,774
Balance at the end of the fiscal year		¥	1,145			¥	109,495			¥	12,791,106
Year ended March 31, 2024		Millions of yen
		Stockholders’ equity
		Capital stock				Capital surplus				Retained earnings				Treasury stock				Total
Balance at the beginning of the fiscal year		¥	2,342,537			¥	694,052			¥	7,423,600			¥	(151,798)			¥	10,308,391
Changes in the fiscal year
Issuance of new stock			1,501				1,500												3,001
Cash dividends											(348,177)								(348,177)
Profit attributable to owners of parent											962,946								962,946
Purchase of treasury stock															(211,434)				(211,434)
Disposal of treasury stock							(185)								401				216
Cancellation of treasury stock							(195,160)								195,160				—
Changes in shareholders’ interest due to transaction with non-controlling interests							(85,409)												(85,409)
Increase due to decrease in affiliates accounted for by the equity method											377								377
Reversal of land revaluation excess											68								68
Transfer from retained earnings to capital surplus							195,345				(195,345)								—
Net changes in items other than stockholders’ equity in the fiscal year
Net changes in the fiscal year			1,501				(83,909)				419,870				(15,872)				321,589
Balance at the end of the fiscal year		¥	2,344,038			¥	610,143			¥	7,843,470			¥	(167,671)			¥	10,629,980

 

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(Continued)

 

		Millions of yen
		Accumulated other comprehensive income
Year ended March 31, 2024		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
Balance at the beginning of the fiscal year		¥	1,373,521			¥	(13,293)			¥	35,005			¥	843,614			¥	133,226			¥	2,372,074
Changes in the fiscal year
Issuance of new stock
Cash dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Cancellation of treasury stock
Changes in shareholders’ interest due to transaction with non-controlling interests
Increase due to decrease in affiliates accounted for by the equity method
Reversal of land revaluation excess
Transfer from retained earnings to capital surplus
Net changes in items other than stockholders’ equity in the fiscal year			1,033,362				(51,780)				(68)				519,032				157,508				1,658,054
Net changes in the fiscal year			1,033,362				(51,780)				(68)				519,032				157,508				1,658,054
Balance at the end of the fiscal year		¥	2,406,883			¥	(65,073)			¥	34,936			¥	1,362,647			¥	290,735			¥	4,030,129
		Millions of yen
Year ended March 31, 2024		Stock acquisition rights				Non- controlling interests				Total net assets
Balance at the beginning of the fiscal year		¥	1,145			¥	109,495			¥	12,791,106
Changes in the fiscal year
Issuance of new stock											3,001
Cash dividends											(348,177)
Profit attributable to owners of parent											962,946
Purchase of treasury stock											(211,434)
Disposal of treasury stock											216
Cancellation of treasury stock											—
Changes in shareholders’ interest due to transaction with non-controlling interests											(85,409)
Increase due to decrease in affiliates accounted for by the equity method											377
Reversal of land revaluation excess											68
Transfer from retained earnings to capital surplus											—
Net changes in items other than stockholders’ equity in the fiscal year			(213)				29,430				1,687,271
Net changes in the fiscal year			(213)				29,430				2,008,861
Balance at the end of the fiscal year		¥	931			¥	138,925			¥	14,799,967

 

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4. Consolidated statements of cash flows

 

		Millions of yen
Year ended March 31		2023				2024
Cash flows from operating activities:
Income before income taxes		¥	1,098,472			¥	1,342,349
Depreciation			238,696				253,827
Losses on impairment of fixed assets			59,045				13,696
Amortization of goodwill			29,232				39,242
Losses related to sale of freight car leasing business			—				108,191
Net (gains) losses on step acquisitions			—				(7,080	)
Equity in (gains) losses of affiliates			(55,461	)			(71,986	)
Net change in reserve for possible loan losses			(74,781	)			56,236
Net change in reserve for employee bonuses			3,442				15,231
Net change in reserve for executive bonuses			(770	)			1,095
Net change in net defined benefit asset and liability			(86,536	)			(206,752	)
Net change in reserve for executive retirement benefits			45				46
Net change in reserve for point service program			3,659				6,962
Net change in reserve for reimbursement of deposits			5,077				(1,616	)
Net change in reserve for losses on interest repayment			(6,706	)			(6,431	)
Interest income			(3,779,715	)			(6,213,520	)
Interest expenses			2,061,922				4,332,866
Net (gains) losses on securities			(51,242	)			(157,931	)
Net (gains) losses from money held in trust			454				(199	)
Net exchange (gains) losses			(681,131	)			(1,023,303	)
Net (gains) losses from disposal of fixed assets			3,412				8,240
Net change in trading assets			(761,361	)			(3,105,997	)
Net change in trading liabilities			1,492,404				2,176,068
Net change in loans and bills discounted			(7,108,627	)			(7,816,963	)
Net change in deposits			9,477,514				4,874,227
Net change in negotiable certificates of deposit			(57,027	)			1,614,779
Net change in borrowed money (excluding subordinated borrowings)			(5,368,773	)			824,962
Net change in deposits with banks			(377,102	)			(418,953	)
Net change in call loans and bills bought and others			(3,243,078	)			(2,223,456	)
Net change in receivables under securities borrowing transactions			73,019				(1,222,928	)
Net change in call money and bills sold and others			(1,410,327	)			3,141,184
Net change in commercial paper			403,531				(56,179	)
Net change in payables under securities lending transactions			(59,308	)			215,664
Net change in foreign exchanges (assets)			888,295				(107,623	)
Net change in foreign exchanges (liabilities)			244,713				1,402,696
Net change in lease receivables and investment assets			20,819				48,280
Net change in short-term bonds (liabilities)			(18,000	)			439,000
Issuance and redemption of bonds (excluding subordinated bonds)			(157,319	)			151,155
Net change in due to trust account			(30,408	)			(525,794	)
Interest received			3,530,912				6,109,785
Interest paid			(1,915,569	)			(4,176,630	)
Other, net			97,800				1,013,486
Subtotal			(5,510,776	)			845,931
Income taxes paid			(384,408	)			(203,069	)
Net cash provided by (used in) operating activities			(5,895,185	)			642,862

 

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Sumitomo Mitsui Financial Group, Inc.

 

(continued)

 

		Millions of yen
Year ended March 31		2023				2024
Cash flows from investing activities:
Purchases of securities		¥	(32,355,919	)		¥	(36,598,269	)
Proceeds from sale of securities			17,887,615				14,138,643
Proceeds from redemption of securities			20,702,736				21,888,554
Purchases of money held in trust			(13,102	)			(10,595	)
Proceeds from sale of money held in trust			0				0
Purchases of tangible fixed assets			(100,015	)			(141,688	)
Proceeds from sale of tangible fixed assets			8,858				2,387
Purchases of intangible fixed assets			(199,114	)			(250,193	)
Purchases of stocks of subsidiaries resulting in change in scope of consolidation			—				(19,782	)
Proceeds from sale of stocks of subsidiaries resulting in change in scope of consolidation			—				72,040
Net cash provided by (used in) investing activities			5,931,059				(918,904	)
Cash flows from financing activities:
Proceeds from subordinated borrowings			10,000				10,000
Repayment of subordinated borrowings			(48,000	)			(30,000	)
Proceeds from issuance of subordinated bonds and bonds with stock acquisition rights			207,000				971,660
Redemption of subordinated bonds and bonds with stock acquisition rights			(85,000	)			—
Dividends paid			(301,600	)			(348,010	)
Dividends paid to non-controlling stockholders			(2,626	)			(9,004	)
Purchases of treasury stock			(138,839	)			(211,434	)
Proceeds from disposal of treasury stock			332				216
Proceeds from sale of stocks of subsidiaries			—				4
Purchase of stocks of subsidiaries not resulting in change in scope of consolidation			—				(102,737	)
Proceeds from sale of stocks of subsidiaries not resulting in change in scope of consolidation			956				—
Net cash provided by (used in) financing activities			(357,778	)			280,693
Effect of exchange rate changes on cash and cash equivalents			354,081				511,430
Net change in cash and cash equivalents			32,176				516,081
Cash and cash equivalents at the beginning of the fiscal year			65,832,072				65,864,248
Cash and cash equivalents at the end of the fiscal year		¥	65,864,248			¥	66,380,330

 

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5. Notes to consolidated financial statements

(Note on going concern)

 Not applicable.

(Segment information)

 

1.

Information on profit and loss amount by reportable segment

 

		Millions of yen
Fiscal year ended March 31, 2024		Wholesale Business Unit				Retail Business Unit				Global Business Unit				Global Markets Business Unit				Head office account and others				Total
Consolidated gross profit		¥	835,200			¥	1,290,000			¥	1,375,900			¥	526,200			¥	(288,482	)		¥	3,738,818
General and administrative expenses			(311,000	)			(1,079,900	)			(809,300	)			(165,300	)			114,907				(2,250,593	)
Others			107,900				5,600				78,300				29,000				(148,814	)			71,986
Consolidated net business profit		¥	632,100			¥	215,700			¥	644,900			¥	389,900			¥	(322,389	)		¥	1,560,211

 

Notes:

1.

Figures shown in the parenthesis represent the loss.

2.

“Others” includes equity in profit and loss of affiliates and cooperated profit and loss based on internal managerial accounting.

3.

“Head office account and others” includes profit or loss to be eliminated as inter-segment transactions.

 

2.

Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on consolidated statements of income (adjustment of difference)

 

Fiscal year ended March 31, 2024		Millions of yen
Consolidated net business profit		¥1,560,211
Other ordinary income (excluding equity in gains of affiliates)		363,334
Other ordinary expenses		(457,417)
Ordinary profit on consolidated statements of income		¥1,466,128
Note: Figures shown in the parenthesis represent the loss.

 

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Sumitomo Mitsui Financial Group, Inc.

 

(Per share data)

 

As of and year ended March 31, 2024				Yen
Net assets per share				¥11,157.36
Earnings per share				724.55
Earnings per share (diluted)				724.34

(Notes)

1. Earnings per share and earnings per share (diluted) are calculated based on the followings:

 

Year ended March 31, 2024				Millions of yen, except number of shares
Earnings per share
Profit attributable to owners of parents				¥962,946
Amount not attributable to common stockholders				—
Profit attributable to owners of parents attributable to common stock				962,946
Average number of common stock during the fiscal year (in thousands)				1,329,025
Earnings per share (diluted)
Adjustment for profit attributable to owners of parents				—
Adjustment of dilutive shares issued by consolidated subsidiaries and equity method affiliates				—
Increase in number of common stock (in thousands)				386
Stock acquisition rights (in thousands)				386
Outline of dilutive shares which were not included in the calculation of “Earnings per share (diluted)” because they do not have dilutive effect:				—

2. Net assets per share is calculated based on the followings:

 

March 31, 2024				Millions of yen, except number of shares
Net assets				¥14,799,967
Amount excluded from net assets				139,857
Stock acquisition rights				931
Non-controlling interests				138,925
Net assets attributable to common stock at the fiscal year-end				14,660,110
Number of common stock at the fiscal year-end used for the calculation of net assets per share (in thousands)				1,313,941

 

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Sumitomo Mitsui Financial Group, Inc.

 

(Significant subsequent events)

1. Cancellation of Own Shares

On April 15, 2024, the Company has conducted the cancellation of its own shares that was resolved by the Board of Directors held on November 14, 2023 and March 27, 2024.

(1) Reason for cancellation of Own Shares

The Company will proceed with a cancellation of its own shares in order to enhance shareholder returns, improve capital efficiency and facilitate a flexible capital policy.

(2) Type of shares cancelled: Common stock

(3) Number of shares cancelled: 20,132,000 shares (Equivalent to 1.5% of the number of shares issued before cancellation)

(4) Cancellation date: April 15, 2024

2. Stock split and partial amendments to the Articles of Incorporation to conduct the stock split

At the Board of Directors held on May 15, 2024, the Company resolved to implement a stock split, and accordingly, propose partial amendments to the Articles of Incorporation to conduct the stock split at the 22nd Ordinary General Meeting of Shareholders scheduled for June 27, 2024.

(1) Purpose of the stock split

By reducing the stock price per investment unit, the Company seeks to develop a more investor-friendly environment and expand the investor base.

(2) Method of the stock split

Each share of common stock owned by shareholders listed or recorded in the closing register of shareholders on the record date of September 30, 2024, will be split into three shares per share.

(3) Increase in the number of shares due to the stock split

1) Total number of issued shares before the stock split: 1,317,397,084 shares

2) Number of shares to be increased by the stock split: 2,634,794,168 shares

3) Total number of issued shares following the stock split: 3,952,191,252 shares

4) Total number of authorized shares following the stock split: 9,000,564,000 shares

* The numbers of shares in 1), 2) and 3) above are subject to change prior to the record date.

(4) Schedule for the stock split

1) Public notice of record date (tentative): September 13, 2024

2) Record date: September 30, 2024

3) Effective date: October 1, 2024

(5) Partial amendments to the Articles of Incorporation to conduct the stock split

The Company proposes partial amendments to the Articles of Incorporation, effective on October 1, 2024, since it is necessary to increase the total number of issued shares and the total number of authorized shares for common stocks in accordance with the above split ratio of the common stocks.

 

Existing Articles of Incorporation		Proposed Amendments
(Total Number of Authorized Shares) Article 6. The total number of shares the Corporation is authorized to issue shall be three billion five hundred sixty four thousand (3,000,564,000) shares.   (Total Number of Authorized Shares of Each Particular Class of Shares) Article 7. The total number of shares the Corporation is authorized to issue shall consist of three billion (3,000,000,000) common stocks, one hundred sixty seven thousand (167,000) type 5 preferred stocks, one hundred sixty seven thousand (167,000) type 7 preferred stocks, one hundred fifteen thousand (115,000) type 8 preferred stocks and one hundred fifteen thousand (115,000) type 9 preferred stocks.		(Total Number of Authorized Shares) Article 6. The total number of shares the Corporation is authorized to issue shall be nine billion five hundred sixty four thousand (9,000,564,000) shares.   (Total Number of Authorized Shares of Each Particular Class of Shares) Article 7. The total number of shares the Corporation is authorized to issue shall consist of nine billion (9,000,000,000) common stocks, one hundred sixty seven thousand (167,000) type 5 preferred stocks, one hundred sixty seven thousand (167,000) type 7 preferred stocks, one hundred fifteen thousand (115,000) type 8 preferred stocks and one hundred fifteen thousand (115,000) type 9 preferred stocks.

 

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(6) Effect on per share data

Assuming that the Company conducts the stock split at the beginning of the fiscal year ended March 31, 2024, per share data are as follows:

 

				Yen
Net assets per share				¥3,719.12
Earnings per share				241.52
Earnings per share (diluted)				241.45

3. Repurchase and cancellation of Own Shares

At the Board of Directors held on May 15, 2024, the Company resolved to repurchase its own shares under Article 8 of the Articles of Incorporation pursuant to Paragraph 1 of Articles 459 of the Companies Act and cancel the repurchased shares pursuant to Article 178 of the Companies Act.

(1) Reason for the repurchase of Own Shares

The Company will proceed with a flexible repurchase of its own shares in order to enhance shareholder returns and improve capital efficiency.

(2) Outline of the repurchase

1) Type of shares to be repurchased: Common stock

2) Aggregate number of shares to be repurchased: Up to 15,000,000 shares (Equivalent to 1.1% of the number of shares issued (excluding treasury stock))

3) Aggregate amount to be repurchased: Up to JPY 100,000,000,000

4) Repurchase period: From May 16, 2024 to July 31, 2024

5) Repurchase method: Market purchase based on a discretionary dealing contract regarding repurchase of its own shares

(3) Outline of the cancellation

1) Type of shares to be cancelled: Common stock

2) Number of shares to be cancelled: All of the shares repurchased as stated in (2) above

3) Scheduled cancellation date: August 20, 2024

4. Acquisition of the Company’s shares for Share-Based Compensation Plan for Employees

At the Board of Directors held on May 15, 2024, the Company resolved the details of the acquisition of its shares by the Trustee of the Employee Stock Ownership Plan (the “ESOP”) related to the Share-Based Compensation Plan (the “Plan”) for the employees of SMBC, a consolidated subsidiary of the Company.

(1) Outline of the ESOP

1) Name: Stock grant trust for employees

2) Trustor: The Company

3) Trustee: Sumitomo Mitsui Trust Bank, Limited

4) Beneficiary: Employees who meet requirements as beneficiaries

5) Trust administrator: A third party that is independent of the Company and its officers will be appointed

6) Voting rights: The trustee shall exercise the voting rights during the trust period based on the trust administrator’s instructions

7) Trust type: Money trust other than a specified cash trust for separate investment

8) Date of trust contract: May 23, 2024

9) Date to entrust cash: May 23, 2024

10) Date to end trust: The end of May 2026 (tentative)

(2) Acquisition of the Company’s shares by the Trustee of the ESOP

1) Type of share to be acquired: Common stock

2) Cash entrusted for the acquisition of the shares: JPY 1,490,000,000

3) Number of shares: 149,000 (Maximum)

4) Method of the share acquisition: Acquisition from the stock market

5) Period of the share acquisition: From May 23, 2024 to May 31, 2024

 

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