• July 03, 2018
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Sumitomo Mitsui Financial Group reports 2017 annual financial results

Operating results

• In fiscal 2017, net business profit increased by ¥71.0 billion year-on-year to ¥1,203.8 billion. The primary reasons were an increase in gross profit by the strong performance of investment product sales at SMBC Nikko Securities Inc. and continuous growth of the credit card and overseas businesses, and an increase in equity in gains of affiliates by gains recorded on the sales of a subsidiary of The Bank of East Asia, Limited.

• Total credit cost decreased by ¥70.2 billion year-on-year to ¥94.2 billion, mainly due to the reversal of reserve for possible loan losses for large obligors at SMBC.

• Ordinary profit increased by ¥158.3 billion year-on-year to ¥1,164.1 billion. The main factors were gains on stock increased at SMBC while provisions for losses on interest repayments were made at SMBC Consumer Finance Co., Ltd in addition to the factors mentioned above.

• Profit attributable to owners of parent increased by ¥27.8 billion year-on-year to ¥734.4 billion because deferred tax assets recoverable in the future with application of the consolidated corporate-tax system was recognized in the previous fiscal year, but not recognized in fiscal 2017.

Consolidated financial position as of March 31, 2018

• Assets and liabilities

Total assets as of March 31, 2018 were ¥ 199,049.1 billion, a year-on-year increase of ¥ 1,257.5 billion. As for major account balances, loans and bills discounted decreased by ¥ 7,291.4 billion to ¥ 72,945.9 billion year-on-year and deposits decreased by ¥ 1,352.7 billion to ¥ 116,477.5 billion year-on-year.

• Net assets

Net assets were ¥ 11,612.9 billion, a year-on-year increase of ¥ 378.6 billion. Stockholders’ equity within net assets was ¥ 8,637.0 billion, a year-on-year increase of ¥ 518.0 billion due to the contribution of profit attributable to owners of parent and the payment of cash dividends.

• Cash flows

Sumitomo Mitsui Financial Group, Inc. generated ¥ 9,342.8 billion in cash flows from operating activities including interest received and paid, net changes in loans and bills discounted and deposits, a year-on-year increase in cash flows of ¥ 4,828.4 billion, and used ¥ 3,395.3 billion in cash flows from investing activities including purchases and sale of, securities
and tangible fixed assets, a year-on-year decrease in cash flows of ¥ 3,976.6 billion, and used ¥ 350.5 billion in cash flows from financing activities including issuance of subordinated borrowings, a year-on-year decrease in cash flows of ¥ 183.9 billion. Consequently, cash and cash equivalents amounted to ¥ 47,983.1 billion, a year-on-year increase of ¥ 5,504.7 billion.

Re-disseminated by The Asian Banker