[6-K] SUMITOMO MITSUI FINANCIAL GROUP, INC. Current Report (Foreign Issuer)
Sumitomo Mitsui Financial Group, Inc. reported a sharp improvement in performance for the six months ended September 30, 2025. Total operating income rose to ¥2,365,813 million from ¥1,744,686 million, driven mainly by higher net interest income, stronger fee and commission income, a much smaller net trading loss, and a swing to positive results from financial assets and liabilities measured at fair value.
Net profit increased to ¥772,877 million from ¥265,496 million, as the higher operating income more than offset a rise in income tax expense. Net interest income grew to ¥1,355,492 million from ¥1,185,018 million, and net fee and commission income increased to ¥696,491 million from ¥637,916 million.
Total assets edged down to ¥290,675,885 million at September 30, 2025 from ¥292,165,070 million at March 31, 2025, mainly due to lower cash and deposits with banks, while loans and advances increased. Total liabilities fell to ¥273,042,616 million from ¥275,676,476 million, and total equity rose to ¥17,633,269 million from ¥16,488,594 million, primarily reflecting higher retained earnings.
The company implemented a three-for-one stock split of its common stock effective October 1, 2024 and presents earnings per share as if the split had applied since the start of the fiscal year ending March 31, 2025.
Positive
- None.
Negative
- None.
Insights
SMFG delivered much stronger half-year earnings, supported by revenue growth and capital returns.
For the six months ended September 30, 2025, total operating income rose by
The balance sheet shows modest contraction in size but improved capital. Total assets declined slightly to
Shareholder-focused actions and regulatory milestones are notable. The board authorized a buyback of up to 50,000,000 shares or
Table of Contents
Exhibit number |
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| 101. INS | Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
| 101. SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents | |
| 104 | The cover page for the Company’s Interim Report on Form 6-K for the six months ended September 30, 2025, has been fo rma tted in Inline XBRL | |
| Sumitomo Mitsui Financial Group, Inc. | ||
| By: | /s/ Kazuyuki Anchi | |
| Name: Kazuyuki Anchi | ||
Title: Senior Managing Corporate Executive Officer Group Chief Financial Officer | ||
Table of Contents
This document contains a review of our financial condition and results of operations for the six months ended September 30, 2025.
TABLE OF CONTENTS
| Page | ||||
| Cautionary Statement Regarding Forward-Looking Statements |
1 | |||
| Financial Review |
2 | |||
| Recent Developments |
2 | |||
| Operating Environment |
2 | |||
| Developments Related to Our Business |
4 | |||
| Accounting Changes |
4 | |||
| Operating Results and Financial Condition |
5 | |||
| Executive Summary |
5 | |||
| Operating Results |
6 | |||
| Business Segment Analysis |
14 | |||
| Financial Condition |
18 | |||
| Liquidity |
30 | |||
| Capital Management |
33 | |||
| Financial Risk Management |
37 | |||
| Risk Management System |
37 | |||
| Credit Risk |
37 | |||
| Market Risk |
37 | |||
| Index to Unaudited Consolidated Financial Statements |
F-1 | |||
Table of Contents
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
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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FINANCIAL REVIEW
Sumitomo Mitsui Financial Group, Inc. (“we,” “us,” “our,” the “Company” or “SMFG”) is a holding company for Sumitomo Mitsui Banking Corporation (“SMBC”), SMBC Trust Bank Ltd. (“SMBC Trust Bank”), Sumitomo Mitsui Finance and Leasing Company, Limited (“SMFL”), SMBC Nikko Securities Inc. (“SMBC Nikko Securities”), Sumitomo Mitsui Card Company, Limited (“Sumitomo Mitsui Card”), SMBC Consumer Finance Co., Ltd. (“SMBC Consumer Finance”), The Japan Research Institute, Limited (“The Japan Research Institute”), Sumitomo Mitsui DS Asset Management Company, Limited (“SMDAM”) and other subsidiaries and affiliates. Through our subsidiaries and affiliates, we offer a diverse range of financial services, including commercial banking, leasing, securities, consumer finance and other services. References to the “SMBC Group” are to us and our subsidiaries and affiliates taken as a whole.
RECENT DEVELOPMENTS
Operating Environment
Economic Environment
Our results of operations and financial condition are significantly affected by developments in Japan as well as the global economy.
The Japanese economy as a whole, recovered during the first half of the fiscal year ending March 31, 2026. This was primarily due to an increase in private consumption, supported by gradual improvements in the employment and income conditions, although toward the end of the period, private residential investments decreased, and exports of goods and services were adversely affected by the introduction of higher U.S. tariffs.
The following table presents the quarter-on-quarter growth rates of Japanese gross domestic product (“GDP”) from the third quarter of the fiscal year ended March 31, 2024, through the second quarter of the fiscal year ending March 31, 2026, based on data published in December 2025 by the Cabinet Office of the Government of Japan.
| For the fiscal year ended/ending March 31, | ||||||||||||||||||||||||||||||||
| 2024 | 2025 | 2026 | ||||||||||||||||||||||||||||||
| 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | |||||||||||||||||||||||||
| Japanese GDP |
0.4% | (0.5%) | 0.2% | 0.7% | 0.3% | 0.4% | 0.5% | (0.6%) | ||||||||||||||||||||||||
Japanese GDP increased by 0.5% on a quarter-on-quarter basis for the first quarter of the fiscal year ending March 31, 2026, primarily due to an increase in private consumption supported by gradual improvements in the employment and income conditions, and an increase in exports of IT-related goods to the ASEAN countries. However, it decreased by 0.6% on a quarter-on-quarter basis for the second quarter of the fiscal year ending March 31, 2026, primarily due to a decrease in private residential investments, and a decrease in exports of goods and services reflecting the introduction of higher U.S. tariffs, which were partially offset by an increase in private consumption.
The employment situation as a whole, improved gradually. The active job openings-to-applicants ratio published by the Ministry of Health, Labour and Welfare of Japan remained almost unchanged for the six months ended September 30, 2025. According to the statistical data published by the Statistics Bureau of Japan, the unemployment rate in September 2025 was 2.6%, an increase of 0.1 percentage points from March 2025. Further, the compensation of employees increased by 0.7% and 0.3% on a quarter-on-quarter basis, for the first and second quarters, respectively, of the fiscal year ending March 31, 2026.
According to Teikoku Databank, a research institution in Japan, there were approximately 5,100 corporate bankruptcies in Japan for the six months ended September 30, 2025, an increase of 3.1% from the same period in the previous year, involving approximately ¥0.7 trillion in total liabilities, a decrease of 49.6% from the same period in the previous year.
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Interest rates in Japanese financial and capital markets are affected by the monetary policy measures of the Bank of Japan (“BOJ”). In January 2016, in addition to the existing provision of ample funds, the BOJ announced the introduction of “quantitative and qualitative monetary easing with a negative interest rate.” Thereafter, the BOJ announced the introduction of a new policy framework, “quantitative and qualitative monetary easing with yield curve control” in September 2016. Under this policy framework, the BOJ would keep short-term interest rates down by maintaining its policy of applying a negative interest rate of minus 0.1% to certain excess reserves of financial institutions held at the BOJ. Moreover, the BOJ indicated it would purchase Japanese government bonds so that the yield of the 10-year Japanese government bonds would be close to around 0% to control long-term interest rates. In December 2022, in light of increased observed volatility in overseas financial and capital markets that affected markets in Japan, the BOJ expanded the range of 10-year Japanese government bonds yield fluctuations to between plus and minus 0.5%. In October 2023, the BOJ announced adjustments to its yield curve control policy and would regard the upper bound of 1.0% for 10-year Japanese government bonds yields as a reference in its market operations. Thereafter, in March 2024, the BOJ announced its conclusion that the policy frameworks of “quantitative and qualitative monetary easing with yield curve control” and the negative interest rate policy to date have fulfilled their roles based on its outlook toward the price stability target. In addition, the BOJ stated that it would encourage the uncollateralized overnight call rate to remain at around 0% to 0.1%, continue its long-term Japanese government bonds purchases with broadly the same amount as before and make nimble responses by further purchases of long-term Japanese government bonds in case of a rapid rise in long-term interest rates. In June 2024, the BOJ announced that it would reduce its purchase amount of long-term Japanese government bonds after the July 2024 Monetary Policy Meeting. This is to ensure that long-term interest rates would be formed more freely in financial markets. Subsequently, in July 2024, the BOJ stated that it would encourage the uncollateralized overnight call rate to remain at around 0.25% and had decided on a plan to reduce its monthly purchase amount of long-term Japanese government bonds by about ¥400 billion each calendar quarter, in principle, from about ¥5.7 trillion in July 2024 to about ¥3 trillion in January-March 2026. In January 2025, the BOJ stated that it would encourage the uncollateralized overnight call rate to remain at around 0.5%. On June 17, 2025, the BOJ stated that it had decided on a plan to reduce its monthly purchase amount of long-term Japanese government bonds by about ¥200 billion each calendar quarter, in principle, from April-June 2026, so that it would be about ¥2 trillion in January-March 2027. Under such circumstances, the uncollateralized overnight call rate, which is the benchmark for short-term interest rates, was around 0.5% at September 30, 2025. The yield on newly issued 10-year Japanese government bonds, which is the benchmark for long-term interest rates, was around 1.6% at September 30, 2025. On December 19, 2025, the BOJ stated that it would encourage the uncollateralized overnight call rate to remain at around 0.75%.
The yen appreciated against the U.S. dollar from ¥149.14 at March 31, 2025 to ¥148.07 at September 30, 2025, according to the statistical data published by the BOJ.
The Nikkei Stock Average, which is a price-weighted average of 225 stocks listed on the Tokyo Stock Exchange, rose from ¥35,617.56 at March 31, 2025, to ¥44,932.63 at September 30, 2025 and subsequently rose to an all-time high of ¥52,411.34 at October 31, 2025.
During the first half of the fiscal year ending March 31, 2026, the global economy as a whole, recovered gradually, although certain countries’ economies remained weak. The U.S. economy recovered during the first half of the fiscal year ending March 31, 2026, primarily due to an increase in private consumption supported by wealth effects, including rising stock prices. The European economy continued to recover during the first half of the fiscal year ending March 31, 2026, primarily due to an increase in private consumption supported by moderate inflation, although exports of goods and services decreased due to the introduction of higher U.S. tariffs. In Asia, the Chinese economy slowed down during the first half of the fiscal year ending March 31, 2026, primarily due to stagnant private consumption resulting from the gradually diminishing effects of government consumption stimulus and the continued sluggish momentum in the real estate market. Asian economies other than China, continued to recover gradually during the first half of the fiscal year ending March 31, 2026, primarily due to an increase in exports of IT-related goods to the United States affected by a surge in demand ahead of the introduction of higher U.S. tariffs.
3
Table of Contents
Regulatory Environment
In addition to economic factors and conditions, we expect that our results of operations and financial condition will be significantly affected by regulatory trends.
Capital Adequacy Requirements
Each year, the Financial Stability Board (“FSB”) publishes a list of global financial institutions that it has identified as Global Systemically Important Banks (“G-SIBs”) based on the methodology issued by the Basel Committee on Banking Supervision (“BCBS”). G-SIBs included on the list are required to maintain an amount of Common Equity Tier 1 (“CET1”) capital above the Basel III minimum requirement and applicable capital conservation buffer to discourage such financial institutions from becoming even more systemically important. This is commonly known as the G-SIB capital surcharge.
The G-SIB capital surcharge ranges from 1% to 2.5% of additional CET1 capital as a percentage of risk-weighted assets based on the organization’s size, interconnectedness, substitutability, complexity and cross-jurisdictional activity as determined by the FSB.
We have been included in the list of G-SIBs each year since the initial list was published in November 2011 and were included on the list published in November 2025. Based on that list, the additional CET1 capital as a percentage of risk-weighted assets we are currently required to maintain is 1%.
Developments Related to Our Business
Changes in principal subsidiaries, associates and joint ventures
In May 2025, SMBC, our subsidiary, sold a part of its shares of The Bank of East Asia, Limited (“BEA”), our commercial banking associate in China. In addition, there were changes in the representation on BEA’s board of directors. As a result, BEA is no longer our associate.
In September 2025, we acquired a 24.2% equity interest in YES BANK Limited (“YES BANK”), a private commercial bank in India, which became our associate. Subsequently, in October 2025, we acquired an additional 0.7% equity interest in YES BANK. Through this investment, we aim to further accelerate our business in India.
Termination of Federal Reserve Written Agreement
In April 2019, SMBC and its New York branch entered into a written agreement with the Federal Reserve Bank of New York requiring SMBC and its New York branch to address certain deficiencies relating to the New York branch’s anti-money laundering and economic sanctions compliance program. SMBC and its New York branch were required, among other things, to implement corrective measures and submit periodic progress reports to the Federal Reserve Bank of New York. The written agreement was terminated in September 2025, as announced by the Federal Reserve Board of Governors.
Repurchase and Cancellation of Own Shares
On November 14, 2025, our board of directors resolved to repurchase shares of our common stock and cancel all the repurchased shares. The resolution authorized the repurchase of up to the lesser of (i) an aggregate of 50,000,000 shares of our common stock and (ii) an aggregate of ¥150 billion between November 17, 2025 and January 31, 2026. During November 2025, we entered into contracts to repurchase 7,226,900 shares of common stock for ¥33 billion in aggregate.
Accounting Changes
Refer to Note 2 “Summary of Material Accounting Policies” to our consolidated financial statements included elsewhere in this report.
4
Table of Contents
OPERATING RESULTS AND FINANCIAL CONDITION
The figures in our operating results and financial condition presented below are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, which we refer to as “IFRS,” except for the risk-weighted capital ratios, the segmental results of operations and some other specifically identified information, which are prepared in accordance with Japanese banking regulations or accounting principles generally accepted in Japan (“Japanese GAAP”), and expressed in Japanese yen, unless otherwise stated or the context otherwise requires.
Executive Summary
Under the economic and financial circumstances described in “Recent Developments—Operating Environment,” we made a profit through our business activities including the commercial banking and other financial services businesses. Our total operating income increased by ¥621,127 million from ¥1,744,686 million for the six months ended September 30, 2024 to ¥2,365,813 million for the six months ended September 30, 2025, primarily due to increases in net interest income and net income (loss) from financial assets and liabilities at fair value through profit or loss and a decrease in net trading loss. Our net profit increased by ¥507,381 million from ¥265,496 million for the six months ended September 30, 2024 to ¥772,877 million for the six months ended September 30, 2025, primarily due to the increase in total operating income described above, which was partially offset by an increase in income tax expense.
Our total assets decreased by ¥1,489,185 million from ¥292,165,070 million at March 31, 2025 to ¥290,675,885 million at September 30, 2025, primarily due to a decrease in cash and deposits with banks, which was partially offset by an increase in loans and advances.
Our total liabilities decreased by ¥2,633,860 million from ¥275,676,476 million at March 31, 2025 to ¥273,042,616 million at September 30, 2025, primarily due to decreases in deposits and borrowings.
Our total equity increased by ¥1,144,675 million from ¥16,488,594 million at March 31, 2025 to ¥17,633,269 million at September 30, 2025, primarily due to an increase in retained earnings.
5
Table of Contents
Operating Results
The following table presents information as to our income, expenses and net profit for the six months ended September 30, 2025 and 2024.
| For the six months ended September 30, |
||||||||
| 2025 | 2024 | |||||||
|
|
|
|
|
|||||
| (In millions, except per share data) | ||||||||
| Interest income |
¥ | 3,393,743 | ¥ | 3,342,131 | ||||
| Interest expense |
2,038,251 | 2,157,113 | ||||||
|
|
|
|
|
|||||
| Net interest income |
1,355,492 | 1,185,018 | ||||||
|
|
|
|
|
|||||
| Fee and commission income |
850,793 | 788,350 | ||||||
| Fee and commission expense |
154,302 | 150,434 | ||||||
|
|
|
|
|
|||||
| Net fee and commission income |
696,491 | 637,916 | ||||||
|
|
|
|
|
|||||
| Net trading loss |
(9,833 | ) | (179,020 | ) | ||||
| Net income (loss) from financial assets and liabilities at fair value through profit or loss |
137,549 | (10,731 | ) | |||||
| Net investment income |
70,018 | 72,343 | ||||||
| Net gains (losses) arising from derecognition of financial assets at amortized cost(1) |
1,777 | (1,822 | ) | |||||
| Other income(1) |
114,319 | 40,982 | ||||||
|
|
|
|
|
|||||
| Total operating income(1) |
2,365,813 | 1,744,686 | ||||||
|
|
|
|
|
|||||
| Impairment charges on financial assets |
71,815 | 105,062 | ||||||
|
|
|
|
|
|||||
| Net operating income(1) |
2,293,998 | 1,639,624 | ||||||
|
|
|
|
|
|||||
| General and administrative expenses |
1,251,493 | 1,186,749 | ||||||
| Other expenses(1) |
145,870 | 182,141 | ||||||
|
|
|
|
|
|||||
| Operating expenses(1) |
1,397,363 | 1,368,890 | ||||||
|
|
|
|
|
|||||
| Share of post-tax profit of associates and joint ventures |
68,534 | 47,454 | ||||||
|
|
|
|
|
|||||
| Profit before tax |
965,169 | 318,188 | ||||||
|
|
|
|
|
|||||
| Income tax expense |
192,292 | 52,692 | ||||||
|
|
|
|
|
|||||
| Net profit |
¥ | 772,877 | ¥ | 265,496 | ||||
|
|
|
|
|
|||||
| Profit attributable to: |
||||||||
| Shareholders of Sumitomo Mitsui Financial Group, Inc. |
¥ | 742,848 | ¥ | 250,215 | ||||
| Non-controlling interests |
8,430 | 2,127 | ||||||
| Other equity instruments holders |
21,599 | 13,154 | ||||||
| Earnings per share(2): |
||||||||
| Basic |
¥ | 192.60 | ¥ | 63.75 | ||||
| Diluted |
192.56 | 63.74 | ||||||
| (1) | For the six months ended September 30, 2025, we presented “Net gains (losses) arising from derecognition of financial assets at amortized cost” as a separate line item in the consolidated income statements. This line item was not presented separately in the same period in the previous year but was included within “Other income” and “Other expenses.” The comparative amounts have been restated to conform to the current presentation. |
| (2) | As resolved by our board of directors on May 15, 2024, we implemented a stock split of our common stock with an effective date of October 1, 2024, whereby 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 was split into three shares. Basic and diluted earnings per share are calculated based on the assumption that the stock split had been implemented at the beginning of the fiscal year ended March 31, 2025. |
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Table of Contents
Total operating income increased by ¥621,127 million, or 36%, from ¥1,744,686 million for the six months ended September 30, 2024 to ¥2,365,813 million for the six months ended September 30, 2025, primarily due to increases in net interest income and net income (loss) from financial assets and liabilities at fair value through profit or loss and a decrease in net trading loss. In addition, due to a decrease in impairment charges on financial assets, net operating income also increased by ¥654,374 million from ¥1,639,624 million for the six months ended September 30, 2024, to ¥2,293,998 million for the six months ended September 30, 2025.
Net profit increased by ¥507,381 million from ¥265,496 million for the six months ended September 30, 2024 to ¥772,877 million for the six months ended September 30, 2025, as a result of the increase in net operating income described above, which was partially offset by an increase in income tax expense.
Net Interest Income
The following tables show the average balances of our statement of financial position items, related interest income, interest expense, net interest income and average annualized interest rates for the six months ended September 30, 2025 and 2024.
| For the six months ended September 30, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average balance(3) |
Interest income |
Average rate |
Average balance(3) |
Interest income |
Average rate |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (In millions, except percentages) | ||||||||||||||||||||||||
| Interest-earning assets: |
||||||||||||||||||||||||
| Interest-earning deposits with banks: |
||||||||||||||||||||||||
| Domestic offices |
¥ | 60,701,008 | ¥ | 152,622 | 0.50% | ¥ | 62,094,364 | ¥ | 47,222 | 0.15% | ||||||||||||||
| Foreign offices |
11,165,401 | 244,626 | 4.38% | 10,422,312 | 273,551 | 5.25% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
71,866,409 | 397,248 | 1.11% | 72,516,676 | 320,773 | 0.88% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Call loans and bills bought, reverse repurchase agreements and cash collateral on securities borrowed: |
||||||||||||||||||||||||
| Domestic offices |
9,805,959 | 70,895 | 1.45% | 11,221,490 | 57,492 | 1.02% | ||||||||||||||||||
| Foreign offices |
14,890,491 | 238,402 | 3.20% | 10,755,711 | 206,862 | 3.85% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
24,696,450 | 309,297 | 2.50% | 21,977,201 | 264,354 | 2.41% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Investment securities(1): |
||||||||||||||||||||||||
| Domestic offices |
20,245,697 | 180,563 | 1.78% | 19,250,422 | 145,201 | 1.51% | ||||||||||||||||||
| Foreign offices |
8,769,895 | 144,064 | 3.29% | 8,859,326 | 164,408 | 3.71% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
29,015,592 | 324,627 | 2.24% | 28,109,748 | 309,609 | 2.20% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Loans and advances(2): |
||||||||||||||||||||||||
| Domestic offices |
75,500,678 | 714,060 | 1.89% | 71,707,367 | 621,451 | 1.73% | ||||||||||||||||||
| Foreign offices |
51,416,824 | 1,648,511 | 6.41% | 50,722,855 | 1,825,944 | 7.20% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
126,917,502 | 2,362,571 | 3.72% | 122,430,222 | 2,447,395 | 4.00% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-earning assets: |
||||||||||||||||||||||||
| Domestic offices |
166,253,342 | 1,118,140 | 1.35% | 164,273,643 | 871,366 | 1.06% | ||||||||||||||||||
| Foreign offices |
86,242,611 | 2,275,603 | 5.28% | 80,760,204 | 2,470,765 | 6.12% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
¥ | 252,495,953 | ¥ | 3,393,743 | 2.69% | ¥ | 245,033,847 | ¥ | 3,342,131 | 2.73% | ||||||||||||||
|
|
|
|
|
|
|
|
|
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7
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| For the six months ended September 30, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average balance(3) |
Interest expense |
Average rate |
Average balance(3) |
Interest expense |
Average rate |
|||||||||||||||||||
| (In millions, except percentages) | ||||||||||||||||||||||||
| Interest-bearing liabilities: |
||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||
| Domestic offices |
¥ | 112,809,540 | ¥ | 225,812 | 0.40% | ¥ | 106,440,798 | ¥ | 142,203 | 0.27% | ||||||||||||||
| Foreign offices |
45,694,326 | 858,322 | 3.76% | 41,952,526 | 989,764 | 4.72% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
158,503,866 | 1,084,134 | 1.37% | 148,393,324 | 1,131,967 | 1.53% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Call money and bills sold, repurchase agreements and cash collateral on securities lent: |
||||||||||||||||||||||||
| Domestic offices |
19,069,581 | 192,138 | 2.02% | 14,344,145 | 209,825 | 2.93% | ||||||||||||||||||
| Foreign offices |
13,169,763 | 286,375 | 4.35% | 9,787,648 | 263,886 | 5.39% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
32,239,344 | 478,513 | 2.97% | 24,131,793 | 473,711 | 3.93% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Borrowings and other interest-bearing liabilities: |
||||||||||||||||||||||||
| Domestic offices |
12,142,979 | 41,818 | 0.69% | 17,478,378 | 61,535 | 0.70% | ||||||||||||||||||
| Foreign offices |
2,263,037 | 59,473 | 5.26% | 1,366,670 | 54,361 | 7.96% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
14,406,016 | 101,291 | 1.41% | 18,845,048 | 115,896 | 1.23% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Debt securities in issue: |
||||||||||||||||||||||||
| Domestic offices |
10,971,073 | 270,880 | 4.94% | 10,289,764 | 317,178 | 6.16% | ||||||||||||||||||
| Foreign offices |
3,379,972 | 70,296 | 4.16% | 2,473,550 | 64,588 | 5.22% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
14,351,045 | 341,176 | 4.75% | 12,763,314 | 381,766 | 5.98% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Premiums for deposit insurance and others: |
||||||||||||||||||||||||
| Domestic offices |
— | 14,410 | — | — | 14,292 | — | ||||||||||||||||||
| Foreign offices |
— | 18,727 | — | — | 39,481 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
— | 33,137 | — | — | 53,773 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total interest-bearing liabilities: |
||||||||||||||||||||||||
| Domestic offices |
154,993,173 | 745,058 | 0.96% | 148,553,085 | 745,033 | 1.00% | ||||||||||||||||||
| Foreign offices |
64,507,098 | 1,293,193 | 4.01% | 55,580,394 | 1,412,080 | 5.08% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
¥ | 219,500,271 | ¥ | 2,038,251 | 1.86% | ¥ | 204,133,479 | ¥ | 2,157,113 | 2.11% | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net interest income and interest rate spread |
¥ | 1,355,492 | 0.83% | ¥ | 1,185,018 | 0.62% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (1) | Taxable investment securities and non-taxable investment securities are not disclosed separately because the aggregate effect of these average balances and interest income would not be material. In addition, the yields on tax-exempt obligations have not been calculated on a tax equivalent basis because the effect of such calculation would not be material. |
| (2) | Loans and advances include impaired loans and advances. The amortized portion of net loan origination fees is included in interest income on loans and advances. |
| (3) | Average balances are generally based on a daily average. Weekly, month-end or quarter-end averages are used for certain average balances where it is not practical to obtain applicable daily averages. The allocations of amounts between domestic and foreign are based on the location of the office. |
8
Table of Contents
The following tables show changes in our interest income, interest expense and net interest income based on changes in volume and changes in rate for the six months ended September 30, 2025 compared to the six months ended September 30, 2024.
| Six months ended September 30, 2025 compared to six months ended September 30, 2024 Increase / (decrease) |
||||||||||||
| Volume | Rate | Net change | ||||||||||
| (In millions) | ||||||||||||
| Interest income: |
||||||||||||
| Interest-earning deposits with banks: |
||||||||||||
| Domestic offices |
¥ | (1,068 | ) | ¥ | 106,468 | ¥ | 105,400 | |||||
| Foreign offices |
18,534 | (47,459 | ) | (28,925 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
17,466 | 59,009 | 76,475 | |||||||||
|
|
|
|
|
|
|
|||||||
| Call loans and bills bought, reverse repurchase agreements and cash collateral on securities borrowed: |
||||||||||||
| Domestic offices |
(7,920 | ) | 21,323 | 13,403 | ||||||||
| Foreign offices |
70,257 | (38,717 | ) | 31,540 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
62,337 | (17,394 | ) | 44,943 | ||||||||
|
|
|
|
|
|
|
|||||||
| Investment securities: |
||||||||||||
| Domestic offices |
7,816 | 27,546 | 35,362 | |||||||||
| Foreign offices |
(1,644 | ) | (18,700 | ) | (20,344 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total |
6,172 | 8,846 | 15,018 | |||||||||
|
|
|
|
|
|
|
|||||||
| Loans and advances: |
||||||||||||
| Domestic offices |
33,916 | 58,693 | 92,609 | |||||||||
| Foreign offices |
24,679 | (202,112 | ) | (177,433 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
58,595 | (143,419 | ) | (84,824 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total interest income: |
||||||||||||
| Domestic offices |
32,744 | 214,030 | 246,774 | |||||||||
| Foreign offices |
111,826 | (306,988 | ) | (195,162 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
¥ | 144,570 | ¥ | (92,958 | ) | ¥ | 51,612 | |||||
|
|
|
|
|
|
|
|||||||
9
Table of Contents
| Six months ended September 30, 2025 compared to six months ended September 30, 2024 Increase / (decrease) |
||||||||||||
| Volume | Rate | Net change | ||||||||||
| (In millions) | ||||||||||||
| Interest expense: |
||||||||||||
| Deposits: |
||||||||||||
| Domestic offices |
¥ | 9,055 | ¥ | 74,554 | ¥ | 83,609 | ||||||
| Foreign offices |
82,831 | (214,273 | ) | (131,442 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
91,886 | (139,719 | ) | (47,833 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Call money and bills sold, repurchase agreements and cash collateral on securities lent: |
||||||||||||
| Domestic offices |
58,161 | (75,848 | ) | (17,687 | ) | |||||||
| Foreign offices |
79,863 | (57,374 | ) | 22,489 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
138,024 | (133,222 | ) | 4,802 | ||||||||
|
|
|
|
|
|
|
|||||||
| Borrowings and other interest-bearing liabilities: |
||||||||||||
| Domestic offices |
(18,419 | ) | (1,298 | ) | (19,717 | ) | ||||||
| Foreign offices |
27,699 | (22,587 | ) | 5,112 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
9,280 | (23,885 | ) | (14,605 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Debt securities in issue: |
||||||||||||
| Domestic offices |
28,803 | (75,101 | ) | (46,298 | ) | |||||||
| Foreign offices |
20,002 | (14,294 | ) | 5,708 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
48,805 | (89,395 | ) | (40,590 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Premiums for deposit insurance and others: |
||||||||||||
| Domestic offices |
118 | — | 118 | |||||||||
| Foreign offices |
(20,754 | ) | — | (20,754 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
(20,636 | ) | — | (20,636 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total interest expense: |
||||||||||||
| Domestic offices |
77,718 | (77,693 | ) | 25 | ||||||||
| Foreign offices |
189,641 | (308,528 | ) | (118,887 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
¥ | 267,359 | ¥ | (386,221 | ) | ¥ | (118,862 | ) | ||||
|
|
|
|
|
|
|
|||||||
| Net interest income: |
||||||||||||
| Domestic offices |
¥ | (44,974 | ) | ¥ | 291,723 | ¥ | 246,749 | |||||
| Foreign offices |
(77,815 | ) | 1,540 | (76,275 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
¥ | (122,789 | ) | ¥ | 293,263 | ¥ | 170,474 | |||||
|
|
|
|
|
|
|
|||||||
Interest Income
Our interest income increased by ¥51,612 million, or 2%, from ¥3,342,131 million for the six months ended September 30, 2024 to ¥3,393,743 million for the six months ended September 30, 2025, primarily due to an increase in interest income on deposits with banks, which was partially offset by a decrease in interest income on loans and advances. Interest income on deposits with banks increased by ¥76,475 million, primarily due to an increase at domestic offices, as a result of an increase in interest income on deposits with the Bank of Japan, reflecting a higher short-term policy rate. Interest income on loans and advances increased by ¥92,609 million, or 15%, at domestic offices, whereas it decreased by ¥177,433 million, or 10%, at foreign offices. The increase at domestic offices was primarily due to rising market interest rates. The decrease at foreign offices was primarily due to a decrease in the market interest rate, although the spread has improved, reflecting our initiatives focused on profitability by replacing low-margin assets.
10
Table of Contents
Interest Expense
Our interest expense decreased by ¥118,862 million, or 6%, from ¥2,157,113 million for the six months ended September 30, 2024 to ¥2,038,251 million for the six months ended September 30, 2025, primarily due to a decrease in interest expense on deposits. Our interest expense on deposits decreased by ¥47,833 million, or 4%, from ¥1,131,967 million for the six months ended September 30, 2024 to ¥1,084,134 million for the six months ended September 30, 2025, primarily due to a decrease in the average rate on deposits at foreign offices, reflecting a decrease in the market interest rate, which was partially offset by an increase in the average rate on deposits at domestic offices.
Net Interest Income
Our net interest income increased by ¥170,474 million, or 14%, from ¥1,185,018 million for the six months ended September 30, 2024 to ¥1,355,492 million for the six months ended September 30, 2025. This was primarily due to an increase in interest income on deposits with banks at domestic offices, and a decrease in the interest expense on deposits at foreign offices.
From the six months ended September 30, 2024 to the six months ended September 30, 2025, the average rate on loans and advances at domestic offices increased by 0.16 percentage points from 1.73% to 1.89%. On the other hand, the average rate on loans and advances at foreign offices decreased by 0.79 percentage points from 7.20% to 6.41%, resulting in the total for loans and advances decreasing by 0.28 percentage points from 4.00% to 3.72%. Additionally, with respect to interest-bearing liabilities, the average rate on deposits decreased by 0.16 percentage points from 1.53% to 1.37%, primarily due to a decrease in the average rate on deposits at foreign offices of 0.96 percentage points from 4.72% to 3.76%.
Net Fee and Commission Income
The following table sets forth our net fee and commission income for the six months ended September 30, 2025 and 2024.
| For the six months ended September 30, |
||||||||
| 2025 | 2024 | |||||||
| (In millions) | ||||||||
| Fee and commission income from: |
||||||||
| Loans |
¥ | 97,671 | ¥ | 86,325 | ||||
| Credit card business |
249,657 | 231,147 | ||||||
| Guarantees |
44,102 | 40,431 | ||||||
| Securities-related business |
142,921 | 129,100 | ||||||
| Deposits |
9,226 | 9,396 | ||||||
| Remittances and transfers |
80,309 | 78,818 | ||||||
| Safe deposits |
1,866 | 2,043 | ||||||
| Trust fees |
5,550 | 4,499 | ||||||
| Investment trusts |
100,272 | 95,172 | ||||||
| Agency |
4,217 | 4,288 | ||||||
| Others |
115,002 | 107,131 | ||||||
|
|
|
|
|
|||||
| Total fee and commission income |
850,793 | 788,350 | ||||||
|
|
|
|
|
|||||
| Fee and commission expense from: |
||||||||
| Remittances and transfers |
17,157 | 15,115 | ||||||
| Others |
137,145 | 135,319 | ||||||
|
|
|
|
|
|||||
| Total fee and commission expense |
154,302 | 150,434 | ||||||
|
|
|
|
|
|||||
| Net fee and commission income |
¥ | 696,491 | ¥ | 637,916 | ||||
|
|
|
|
|
|||||
11
Table of Contents
Fee and commission income increased by ¥62,443 million, or 8%, from ¥788,350 million for the six months ended September 30, 2024 to ¥850,793 million for the six months ended September 30, 2025. Primary sources of fee and commission income are fees and commissions obtained through our credit card business, securities-related business and investment trusts, loan transaction fees, and remittance and transfer fees. The increase in fee and commission income was primarily due to an increase in fees from our payment business, reflecting an increase in cashless payments, as well as increases in fees from overseas loan transactions and structured financing for domestic customers’ business restructuring. It was also attributable to the steady performance of the wealth management business in favorable market conditions.
Fee and commission expense increased by ¥3,868 million, or 3%, from ¥150,434 million for the six months ended September 30, 2024 to ¥154,302 million for the six months ended September 30, 2025.
As a result, net fee and commission income increased by ¥58,575 million, or 9%, from ¥637,916 million for the six months ended September 30, 2024 to ¥696,491 million for the six months ended September 30, 2025.
Net Loss from Trading, Net Income (Loss) from Financial Assets and Liabilities at Fair Value Through Profit or Loss, Net Income from Investment Securities and Net Gains (Losses) Arising from Derecognition of Financial Assets at Amortized Cost
The following table sets forth our net loss from trading, net income (loss) from financial assets and liabilities at fair value through profit or loss, net income from investment securities and net gains (losses) arising from derecognition of financial assets at amortized cost for the six months ended September 30, 2025 and 2024.
| For the six months ended September 30, |
||||||||
| 2025 | 2024 | |||||||
| (In millions) | ||||||||
| Net trading loss: |
||||||||
| Interest rate |
¥ | 40,222 | ¥ | (25,919 | ) | |||
| Foreign exchange |
(33,974 | ) | (183,594 | ) | ||||
| Equity |
(10,708 | ) | 31,403 | |||||
| Credit |
(5,734 | ) | (1,681 | ) | ||||
| Others |
361 | 771 | ||||||
|
|
|
|
|
|||||
| Total net trading loss |
¥ | (9,833 | ) | ¥ | (179,020 | ) | ||
|
|
|
|
|
|||||
| Net income (loss) from financial assets and liabilities at fair value through profit or loss: |
||||||||
| Net income (loss) from financial assets mandatorily at fair value through profit or loss: |
||||||||
| Net income (loss) from debt instruments |
¥ | 133,407 | ¥ | (10,905 | ) | |||
| Net income from equity instruments |
2,418 | 659 | ||||||
| Net income (loss) from financial liabilities designated at fair value through profit or loss |
1,724 | (485 | ) | |||||
|
|
|
|
|
|||||
| Total net income (loss) from financial assets and liabilities at fair value through profit or loss |
¥ | 137,549 | ¥ | (10,731 | ) | |||
|
|
|
|
|
|||||
| Net investment income: |
||||||||
| Net gain from disposal of debt instruments |
¥ | 7,393 | ¥ | 12,553 | ||||
| Dividend income |
62,625 | 59,790 | ||||||
|
|
|
|
|
|||||
| Total net investment income |
¥ | 70,018 | ¥ | 72,343 | ||||
|
|
|
|
|
|||||
| Net gains (losses) arising from derecognition of financial assets at amortized cost |
¥ | 1,777 | ¥ | (1,822 | ) | |||
|
|
|
|
|
|||||
12
Table of Contents
Net trading loss, which includes income and losses from trading assets and liabilities and derivative financial instruments, decreased by ¥169,187 million from a net loss of ¥179,020 million for the six months ended September 30, 2024 to a net loss of ¥9,833 million for the six months ended September 30, 2025. The decrease was primarily due to a decrease in net trading loss from foreign exchange transactions and an increase in net trading income from interest rate-related transactions.
We have carried out hedging transactions mainly to hedge the interest rate risk of financial assets and liabilities and the foreign exchange risk of foreign currency denominated assets and liabilities. Of those hedges, economic hedges are economically effective for risk management but are not accounted for as hedge accounting under IFRS.
As for the economic hedges against interest rate risk, hedged items include loans and deposits and hedging instruments are derivative financial instruments such as interest rate swaps. As for the economic hedges against foreign exchange risk, hedged items are foreign currency denominated assets and liabilities and hedging instruments are currency derivatives. Economic hedge transactions may lead to accounting mismatches (i.e., when the gains or losses on the hedged items and hedging instruments do not arise at the same time, or the hedged items and hedging instruments do not offset each other either in profit or loss, or in other comprehensive income), and may result in significant fluctuations in net trading loss.
Net income (loss) from financial assets and liabilities at fair value through profit or loss increased by ¥148,280 million from a net loss of ¥10,731 million for the six months ended September 30, 2024 to a net income of ¥137,549 million for the six months ended September 30, 2025. This was primarily due to an increase in net gains from changes in the fair value of investment funds.
Net investment income decreased by ¥2,325 million from ¥72,343 million for the six months ended September 30, 2024 to ¥70,018 million for the six months ended September 30, 2025. This was primarily due to a decrease in gains from sales of foreign bonds.
Net gains (losses) arising from derecognition of financial assets at amortized cost increased by ¥3,599 million from a net loss of ¥1,822 million for the six months ended September 30, 2024 to a net income of ¥1,777 million for the six months ended September 30, 2025. The increase was primarily due to an increase in gains from sales of certain low-profit loans.
Impairment Charges on Financial Assets
The following table sets forth our impairment charges (reversals) on financial assets for the six months ended September 30, 2025 and 2024.
| For the six months ended September 30, |
||||||||
| 2025 | 2024 | |||||||
| (In millions) | ||||||||
| Loans and advances |
¥ | 80,234 | ¥ | 114,194 | ||||
| Loan commitments |
(16,153 | ) | (6,494 | ) | ||||
| Financial guarantees |
(4,091 | ) | (2,638 | ) | ||||
| Investment securities |
11,825 | — | ||||||
|
|
|
|
|
|||||
| Total impairment charges on financial assets |
¥ | 71,815 | ¥ | 105,062 | ||||
|
|
|
|
|
|||||
Our impairment charges on financial assets consist of losses relating to loans and advances, loan commitments, financial guarantee contracts, and investment securities. Impairment charges on these financial assets are mainly affected by the economic environment and financial conditions of borrowers or issuers.
13
Table of Contents
Impairment charges on financial assets decreased by ¥33,247 million from ¥105,062 million for the six months ended September 30, 2024 to ¥71,815 million for the six months ended September 30, 2025, primarily due to a decrease in impairment charges on loans and advances. The decrease was primarily due to a decrease in the provision for loan losses related to improvements in forecasts of future macroeconomic conditions from the fiscal year ended March 31, 2025. For further information on provision for loan losses, see “—Financial Condition—Allowance for Loan Losses.”
General and Administrative Expenses
The following table sets forth our general and administrative expenses for the six months ended September 30, 2025 and 2024.
| For the six months ended September 30, |
||||||||
| 2025 | 2024 | |||||||
| (In millions) | ||||||||
| Personnel expenses |
¥ | 583,110 | ¥ | 559,874 | ||||
| Depreciation and amortization |
144,662 | 145,133 | ||||||
| Building and maintenance expenses |
4,011 | 3,933 | ||||||
| Supplies expenses |
8,694 | 10,526 | ||||||
| Communication expenses |
17,114 | 15,329 | ||||||
| Publicity and advertising expenses |
114,561 | 89,545 | ||||||
| Taxes and dues |
63,736 | 56,380 | ||||||
| Outsourcing expenses |
51,583 | 57,815 | ||||||
| Office equipment expenses |
43,481 | 32,759 | ||||||
| Others |
220,541 | 215,455 | ||||||
|
|
|
|
|
|||||
| Total general and administrative expenses |
¥ | 1,251,493 | ¥ | 1,186,749 | ||||
|
|
|
|
|
|||||
General and administrative expenses increased by ¥64,744 million, or 5%, from ¥1,186,749 million for the six months ended September 30, 2024 to ¥1,251,493 million for the six months ended September 30, 2025. The increase was due to inflation and increases in expenses related to business development, as well as higher variable marketing costs in the payment business.
Share of Post-tax Profit of Associates and Joint Ventures
Share of post-tax profit of associates and joint ventures increased by ¥21,080 million from ¥47,454 million for the six months ended September 30, 2024 to ¥68,534 million for the six months ended September 30, 2025, primarily due to an increase in the share of profit of foreign associates and joint ventures.
Income Tax Expense
Income tax expense increased by ¥139,600 million from ¥52,692 million for the six months ended September 30, 2024 to ¥192,292 million for the six months ended September 30, 2025. The increase was primarily due to a decrease in deferred tax benefit related to derivative financial instruments.
Business Segment Analysis
Our business segment information is prepared based on the internal reporting system utilized by our management to assess the performance of our business segments under Japanese GAAP.
14
Table of Contents
We have four main business segments: the Wholesale Business Unit, the Retail Business Unit, the Global Business Unit and the Global Markets Business Unit, with the remaining operations recorded in Head office account and others.
Since figures reported to management are prepared under Japanese GAAP, the segment information does not agree to the figures in the consolidated financial statements under IFRS. This difference is addressed in Note 4 “Segment Analysis—Reconciliation of Segmental Results of Operations to Consolidated Income Statements” to our consolidated financial statements included elsewhere in this report.
Description of Business Segments
Wholesale Business Unit
The Wholesale Business Unit provides comprehensive solutions primarily for corporate clients in Japan that respond to wide-ranging client needs in relation to financing, investment management, risk hedging, settlement, M&A and other advisory services, digital services and leasing services. This business unit mainly consists of the wholesale businesses of SMBC, SMBC Trust Bank, SMFL, SMBC Nikko Securities and Sumitomo Mitsui Card, which merged with SMBC Finance Service Co., Ltd., formerly a wholly-owned subsidiary of Sumitomo Mitsui Card, in April 2024.
Retail Business Unit
The Retail Business Unit provides financial services to consumers residing in Japan and mainly consists of the retail businesses of SMBC, SMBC Trust Bank, SMBC Nikko Securities, Sumitomo Mitsui Card and SMBC Consumer Finance. This business unit offers a wide range of products and services for consumers, including wealth management services, settlement services, consumer finance and housing loans, in order to address the financial needs of all individual customers.
Global Business Unit
The Global Business Unit supports the global businesses of a diverse range of clients, such as Japanese companies operating overseas, non-Japanese companies, financial institutions, government agencies, public corporations and retail clients of various countries. This business unit provides a variety of tailored products and services to meet customer and market requirements, including loans, deposits, clearing services, trade finance, project finance, loan syndication, derivatives, global cash management services, leasing services, equity and fixed income sales and trading, underwriting activities, Japanese stock brokerage and M&A advisory services. This business unit mainly consists of the global businesses of SMBC, SMBC Trust Bank, SMFL, SMBC Nikko Securities and their foreign subsidiaries.
Global Markets Business Unit
The Global Markets Business Unit offers solutions through foreign exchange products, derivatives, bonds, stocks and other marketable financial products, and also undertakes asset liability management operations, which help comprehensively control balance sheet liquidity risks and market risks. This business unit consists of the Global Markets and Treasury Unit of SMBC and the Global Markets Division of SMBC Nikko Securities.
Head Office Account and Others
The Head office account and others represent the differences between the aggregate of the Wholesale Business Unit, the Retail Business Unit, the Global Business Unit and the Global Markets Business Unit, and the Company and its subsidiaries as a whole. It mainly consists of administrative expenses related to headquarters operations and profit or loss from other subsidiaries including The Japan Research Institute and SMDAM. It also includes the elimination items related to internal transactions between our group companies.
15
Table of Contents
Segmental Results of Operations
The following tables show our results of operations by business segment for the six months ended September 30, 2025 and 2024.
For the six months ended September 30, 2025:
| Wholesale Business Unit |
Retail Business Unit |
Global Business Unit |
Global Markets Business Unit |
Head office account and others |
Total | |||||||||||||||||||
| (In billions) | ||||||||||||||||||||||||
| Consolidated gross profit(1) |
¥ | 585.7 | ¥ | 729.4 | ¥ | 735.0 | ¥ | 333.5 | ¥ | (84.8 | ) | ¥ | 2,298.8 | |||||||||||
| General and administrative expenses |
(198.7 | ) | (552.7 | ) | (485.4 | ) | (106.2 | ) | 114.2 | (1,228.8 | ) | |||||||||||||
| Others(2) |
75.1 | 2.6 | 92.5 | 19.0 | (111.1 | ) | 78.1 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Consolidated net business profit |
¥ | 462.1 | ¥ | 179.3 | ¥ | 342.1 | ¥ | 246.3 | ¥ | (81.7 | ) | ¥ | 1,148.1 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
For the six months ended September 30, 2024:
| Wholesale Business Unit |
Retail Business Unit |
Global Business Unit |
Global Markets Business Unit |
Head office account and others |
Total | |||||||||||||||||||
| (In billions) | ||||||||||||||||||||||||
| Consolidated gross profit(1) |
¥ | 441.2 | ¥ | 668.4 | ¥ | 643.9 | ¥ | 362.6 | ¥ | (70.8 | ) | ¥ | 2,045.3 | |||||||||||
| General and administrative expenses |
(163.1 | ) | (541.8 | ) | (426.2 | ) | (93.9 | ) | 52.3 | (1,172.7 | ) | |||||||||||||
| Others(2) |
60.1 | 2.2 | 44.6 | 16.8 | (78.1 | ) | 45.6 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Consolidated net business profit |
¥ | 338.2 | ¥ | 128.8 | ¥ | 262.3 | ¥ | 285.5 | ¥ | (96.6 | ) | ¥ | 918.2 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (1) | Consolidated gross profit = (Interest income – Interest expenses) + Trust fees + (Fee and commission income – Fee and commission expenses) + (Trading income – Trading losses) + (Other operating income – Other operating expenses). |
| (2) | “Others” includes share of profit or loss of equity-method associates and joint ventures and cooperated profit and loss, that is, profit and loss double counted within our business segments in the managerial accounting. |
The following are explanations of our results of operations by business segment for the six months ended September 30, 2025. It also includes the changes from the same period in the previous year, which are adjusted by eliminating the impact of factors such as changes in interest rates and exchange rates that may distort the comparison.
Wholesale Business Unit
Consolidated gross profit for the six months ended September 30, 2025 was ¥585.7 billion and increased by ¥98.2 billion on an adjusted basis compared to the six months ended September 30, 2024. This was primarily due to increases in interest income on loans and deposits and fees and commission income of SMBC.
General and administrative expenses for the six months ended September 30, 2025 was ¥198.7 billion and increased by ¥6.3 billion on an adjusted basis compared to the six months ended September 30, 2024.
Others for the six months ended September 30, 2025 was ¥75.1 billion.
As a result, consolidated net business profit for the six months ended September 30, 2025 was ¥462.1 billion and increased by ¥97.2 billion on an adjusted basis compared to the six months ended September 30, 2024.
Retail Business Unit
Consolidated gross profit for the six months ended September 30, 2025 was ¥729.4 billion and increased by ¥71.4 billion on an adjusted basis compared to the six months ended September 30, 2024. This was primarily due to increases in interest income on deposits and income from the wealth management and payment businesses.
16
Table of Contents
General and administrative expenses for the six months ended September 30, 2025 was ¥552.7 billion and increased by ¥29.1 billion on an adjusted basis compared to the six months ended September 30, 2024. This was primarily due to an increase in the variable marketing costs of the payment business.
Others for the six months ended September 30, 2025 was ¥2.6 billion.
As a result, consolidated net business profit for the six months ended September 30, 2025 was ¥179.3 billion and increased by ¥43.8 billion on an adjusted basis compared to the six months ended September 30, 2024.
Global Business Unit
Consolidated gross profit for the six months ended September 30, 2025 was ¥735.0 billion and increased by ¥76.7 billion on an adjusted basis compared to the six months ended September 30, 2024. This was primarily due to increases in interest income on loans and loan-related fees.
General and administrative expenses for the six months ended September 30, 2025 was ¥485.4 billion and increased by ¥51.3 billion on an adjusted basis compared to the six months ended September 30, 2024. This was primarily due to increases in expenses related to overseas business development and responses to regulations.
Others for the six months ended September 30, 2025 was ¥92.5 billion and increased by ¥40.3 billion on an adjusted basis compared to the six months ended September 30, 2024. This was primarily due to a gain upon receipt of cash insurance settlement proceeds related to aircraft previously leased by SMBC Aviation Capital Limited, our equity-method associate, as well as the improved performance from our other foreign equity-method associates.
As a result, consolidated net business profit for the six months ended September 30, 2025 was ¥342.1 billion and increased by ¥65.7 billion on an adjusted basis compared to the six months ended September 30, 2024.
Global Markets Business Unit
Consolidated gross profit for the six months ended September 30, 2025 was ¥333.5 billion and decreased by ¥31.0 billion on an adjusted basis compared to the six months ended September 30, 2024. This was primarily due to a decrease in trading profits of SMBC Nikko Securities.
General and administrative expenses for the six months ended September 30, 2025 was ¥106.2 billion and increased by ¥10.0 billion on an adjusted basis compared to the six months ended September 30, 2024.
Others for the six months ended September 30, 2025 was ¥19.0 billion.
As a result, consolidated net business profit for the six months ended September 30, 2025 was ¥246.3 billion and decreased by ¥38.9 billion on an adjusted basis compared to the six months ended September 30, 2024.
17
Table of Contents
Revenues by Region
The following table sets forth the percentage of our total operating income under IFRS for each indicated period, based on the total operating income of our offices in the indicated regions. In Japan, we compete with other major Japanese banking groups and financial service providers. Outside Japan, we mainly compete with global financial institutions in the Americas, Europe and Middle East, and Asia and Oceania.
| For the six months ended September 30, |
||||||||
| 2025 | 2024 | |||||||
| Region: |
||||||||
| Japan |
42 | % | 23 | % | ||||
| Foreign: |
||||||||
| Americas |
27 | % | 37 | % | ||||
| Europe and Middle East |
11 | % | 11 | % | ||||
| Asia and Oceania (excluding Japan) |
20 | % | 29 | % | ||||
|
|
|
|
|
|||||
| Total |
100 | % | 100 | % | ||||
|
|
|
|
|
|||||
Financial Condition
Assets
Our total assets decreased by ¥1,489,185 million from ¥292,165,070 million at March 31, 2025 to ¥290,675,885 million at September 30, 2025. The decrease was primarily due to a decrease in cash and deposits with banks, which was partially offset by an increase in loans and advances.
Our assets at September 30, 2025 and March 31, 2025 were as follows:
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Cash and deposits with banks |
¥ | 73,348,716 | ¥ | 76,669,401 | ||||
| Call loans and bills bought |
5,702,966 | 5,200,789 | ||||||
| Reverse repurchase agreements and cash collateral on securities borrowed |
21,923,897 | 22,076,009 | ||||||
| Trading assets |
5,825,732 | 6,176,613 | ||||||
| Derivative financial instruments |
8,306,494 | 8,313,016 | ||||||
| Financial assets at fair value through profit or loss |
2,254,221 | 2,902,969 | ||||||
| Investment securities |
33,184,239 | 33,546,133 | ||||||
| Loans and advances |
127,088,662 | 125,190,819 | ||||||
| Investments in associates and joint ventures |
1,817,612 | 1,588,820 | ||||||
| Property, plant and equipment |
1,328,317 | 1,319,002 | ||||||
| Intangible assets |
1,151,853 | 1,091,194 | ||||||
| Other assets |
8,607,375 | 7,983,972 | ||||||
| Current tax assets |
46,697 | 43,157 | ||||||
| Deferred tax assets |
89,104 | 63,176 | ||||||
|
|
|
|
|
|||||
| Total assets |
¥ | 290,675,885 | ¥ | 292,165,070 | ||||
|
|
|
|
|
|||||
Loans and Advances
Our main operating activity is the lending business. We make loans and extend other types of credit principally to corporate and individual customers in Japan and to corporate customers in foreign countries.
18
Table of Contents
At September 30, 2025, our loans and advances were ¥127,088,662 million, or 44% of total assets, representing an increase of ¥1,897,843 million, or 2%, from ¥125,190,819 million at March 31, 2025. The increase in loans and advances to domestic customers was primarily due to an increase in loans to domestic corporate customers, reflecting our efforts to capture the steady demand for financing amid robust business activities. The decrease in loans and advances to foreign customers was primarily due to the translation impact of the appreciation of the yen, although our balance of loans and advances in foreign currency increased, reflecting our efforts to meet corporate customers’ financing needs reflecting the decrease in the market interest rate.
Domestic
Through SMBC and other banking and non-bank subsidiaries, we make loans to a broad range of industrial, commercial and individual customers in Japan. The following table shows our outstanding loans and advances to customers whose domiciles are in Japan, classified by industry, before deducting the allowance for loan losses, and adjusting unearned income, unamortized premiums-net and deferred loan fees-net at the dates indicated.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Manufacturing |
¥ | 12,895,991 | ¥ | 12,299,303 | ||||
| Agriculture, forestry, fisheries and mining |
274,080 | 254,820 | ||||||
| Construction |
1,280,861 | 1,118,001 | ||||||
| Transportation, communications and public enterprises |
7,634,181 | 6,795,140 | ||||||
| Wholesale and retail |
6,362,700 | 6,413,857 | ||||||
| Finance and insurance |
4,009,190 | 3,962,719 | ||||||
| Real estate and goods rental and leasing |
19,100,507 | 18,144,037 | ||||||
| Services |
5,565,053 | 5,277,710 | ||||||
| Municipalities |
516,543 | 583,750 | ||||||
| Lease financing |
26,409 | 21,154 | ||||||
| Consumer(1) |
17,051,080 | 16,806,507 | ||||||
| Others(2) |
582,484 | 1,563,164 | ||||||
|
|
|
|
|
|||||
| Total domestic |
¥ | 75,299,079 | ¥ | 73,240,162 | ||||
|
|
|
|
|
|||||
| (1) | The balance in Consumer mainly consists of housing loans. The housing loan balances amounted to ¥10,975,100 million and ¥11,120,139 million at September 30, 2025 and March 31, 2025, respectively. |
| (2) | The balance in Others includes loans and advances to the Government of Japan. |
Foreign
The following table shows the outstanding loans and advances to our customers whose domiciles are not in Japan, classified by industry, before deducting the allowance for loan losses, and adjusting unearned income, unamortized premiums-net and deferred loan fees-net at the dates indicated.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Public sector |
¥ | 681,149 | ¥ | 664,085 | ||||
| Financial institutions |
12,801,483 | 12,415,685 | ||||||
| Commerce and industry |
31,963,321 | 32,682,288 | ||||||
| Lease financing |
246,531 | 300,322 | ||||||
| Others |
7,738,589 | 7,521,732 | ||||||
|
|
|
|
|
|||||
| Total foreign |
¥ | 53,431,073 | ¥ | 53,584,112 | ||||
|
|
|
|
|
|||||
19
Table of Contents
Allowance for Loan Losses
We calculate the allowance for loan losses using the latest assignment of obligor grades (our internal credit rating) and supplementary data such as the borrowers’ operating cash flows, realizable value of collateral and recent economic conditions. We incorporate forward-looking information into the expected credit losses (“ECL”) measurement by obligor grading, macroeconomic factors and additional adjustments if the current circumstances, events or conditions at the relevant portfolio level are not fully reflected in the ECL model. For additional details on the forward-looking information incorporated into the ECL measurement, refer to Note 7 “Loans and Advances” to our consolidated financial statements included elsewhere in this report.
In respect of additional ECL adjustments, we decided to make ECL adjustments for the portfolios affected by high tariff measures by the United States on its trading partner countries, the situation in Russia and Ukraine, the continuing high interest rates in foreign countries and the changes in the domestic business environment. At September 30, 2025, the additional ECL adjustments for the portfolios affected by high tariff measures by the United States on its trading partner countries was ¥32,341 million. Further, our credit risk exposure to Russian borrowers was approximately ¥170 billion and the ECL for that exposure was ¥87,382 million. In addition, the additional adjustments to the ECL allowance for the portfolios affected by the continuing high interest rates in foreign countries and for the portfolios affected by the changes in the domestic business environment were ¥11,352 million and ¥9,735 million, respectively.
For the six months ended September 30, 2025, the allowance for loan losses decreased by ¥12,302 million from ¥1,102,522 million at beginning of period to ¥1,090,220 million at end of period. The balance of the allowance for loan losses increases when a provision for loan losses is recognized and decreases when charge-offs are recognized through the sales of loans and write-offs. As we recorded a provision for loan losses of ¥80,234 million and charge-offs of ¥107,973 million for the six months ended September 30, 2025, charge-offs exceeded the provision for loan losses and the overall allowance for loan losses decreased.
The provision for loan losses decreased by ¥33,960 million from ¥114,194 million for the six months ended September 30, 2024 to ¥80,234 million for the six months ended September 30, 2025, primarily due to a decrease in the provision for loan losses related to improvements in forecasts of future macroeconomic conditions from the fiscal year ended March 31, 2025. Charge-offs slightly decreased by ¥2,130 million from ¥110,103 million for the six months ended September 30, 2024, to ¥107,973 million for the six months ended September 30, 2025.
The following tables show the analysis of our allowance for loan losses for the six months ended September 30, 2025 and 2024.
| At September 30, 2025 | ||||||||||||||||
| 12-month ECL | Lifetime ECL not credit- impaired |
Lifetime ECL credit-impaired |
Total | |||||||||||||
| (In millions) | ||||||||||||||||
| Allowance for loan losses: |
||||||||||||||||
| Balance at April 1, 2025 |
¥ | 295,352 | ¥ | 251,680 | ¥ | 555,490 | ¥ | 1,102,522 | ||||||||
| Net transfers between stages |
(9,996 | ) | (12,567 | ) | 22,563 | — | ||||||||||
| Provision (credit) for loan losses |
998 | (28,646 | ) | 107,882 | 80,234 | |||||||||||
| Charge-offs(1) |
— | — | 107,973 | 107,973 | ||||||||||||
| Recoveries |
— | — | 14,713 | 14,713 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net charge-offs |
— | — | 93,260 | 93,260 | ||||||||||||
| Others(2) |
(2,582 | ) | 69 | 3,237 | 724 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Balance at September 30, 2025 |
¥ | 283,772 | ¥ | 210,536 | ¥ | 595,912 | ¥ | 1,090,220 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
20
Table of Contents
| At September 30, 2024 | ||||||||||||||||
| 12-month ECL | Lifetime ECL not credit- impaired |
Lifetime ECL credit-impaired |
Total | |||||||||||||
| (In millions) | ||||||||||||||||
| Allowance for loan losses: |
||||||||||||||||
| Balance at April 1, 2024 |
¥ | 196,325 | ¥ | 257,542 | ¥ | 525,133 | ¥ | 979,000 | ||||||||
| Net transfers between stages |
(4,967 | ) | (8,002 | ) | 12,969 | — | ||||||||||
| Provision (credit) for loan losses |
38,391 | (11,067 | ) | 86,870 | 114,194 | |||||||||||
| Charge-offs(1) |
— | — | 110,103 | 110,103 | ||||||||||||
| Recoveries |
— | — | 10,438 | 10,438 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net charge-offs |
— | — | 99,665 | 99,665 | ||||||||||||
| Others(2) |
18 | (3,337 | ) | (8,556 | ) | (11,875 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Balance at September 30, 2024 |
¥ | 229,767 | ¥ | 235,136 | ¥ | 516,751 | ¥ | 981,654 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | Charge-offs consist of the reduction of the allowance through the sales of loans and write-offs. |
| (2) | Others mainly include foreign exchange translations for the six months ended September 30, 2025 and 2024. |
Impaired Loans and Advances
A portion of the total domestic and foreign loans and advances consists of impaired loans and advances, which are comprised of “potentially bankrupt, virtually bankrupt and bankrupt (loans and advances),” “past due three months or more (loans),” “restructured (loans)” and “other impaired (loans and advances).” The loans and advances for which management has serious doubts about the ability of the borrowers to comply in the near future with the repayment terms are wholly included in impaired loans and advances.
“Potentially bankrupt, virtually bankrupt and bankrupt (loans and advances)” comprise loans and advances to borrowers that are perceived to have a high risk of falling into bankruptcy, may not have been legally or formally declared bankrupt but are essentially bankrupt, or have been legally or formally declared bankrupt.
Loans classified as “past due three months or more (loans)” represent those loans that are three months or more past due as to principal or interest, which are not included in “potentially bankrupt, virtually bankrupt and bankrupt (loans and advances).”
The category “restructured (loans)” comprises loans not included above for which the terms of the loans have been modified to grant concessions because of problems with the borrower.
“Other impaired (loans and advances)” represent impaired loans and advances, which are not included in “potentially bankrupt, virtually bankrupt and bankrupt (loans and advances),” “past due three months or more (loans),” or “restructured (loans),” but are classified by management as impaired loans and advances due to certain information about credit problems.
21
Table of Contents
The following table shows the distribution of impaired loans and advances by “potentially bankrupt, virtually bankrupt and bankrupt (loans and advances),” “past due three months or more (loans),” “restructured (loans)” and “other impaired (loans and advances)” at September 30, 2025 and March 31, 2025 classified by domicile and type of industry of the borrowers. At September 30, 2025, gross impaired loans and advances were ¥1,390,252 million, an increase of ¥99,440 million from ¥1,290,812 million at March 31, 2025. The ratio of gross impaired loans and advances to the outstanding loans and advances before deducting the allowance for loan losses, and adjusting unearned income, unamortized premiums-net and deferred loan fees-net was 1.1% at September 30, 2025, an increase of 0.1 percentage points from 1.0% at March 31, 2025.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Potentially bankrupt, virtually bankrupt and bankrupt (loans and advances): |
||||||||
| Domestic: |
||||||||
| Manufacturing |
¥ | 54,085 | ¥ | 58,528 | ||||
| Agriculture, forestry, fisheries and mining |
1,647 | 1,672 | ||||||
| Construction |
5,476 | 5,929 | ||||||
| Transportation, communications and public enterprises |
18,366 | 20,515 | ||||||
| Wholesale and retail |
47,167 | 48,317 | ||||||
| Finance and insurance |
5,228 | 5,563 | ||||||
| Real estate and goods rental and leasing |
27,084 | 28,680 | ||||||
| Services |
49,116 | 50,698 | ||||||
| Consumer |
178,237 | 148,529 | ||||||
| Others |
5,844 | 7,984 | ||||||
|
|
|
|
|
|||||
| Total domestic |
392,250 | 376,415 | ||||||
|
|
|
|
|
|||||
| Foreign: |
||||||||
| Financial institutions |
161 | 150 | ||||||
| Commerce and industry |
360,363 | 318,411 | ||||||
| Others |
99,895 | 93,244 | ||||||
|
|
|
|
|
|||||
| Total foreign |
460,419 | 411,805 | ||||||
|
|
|
|
|
|||||
| Total |
852,669 | 788,220 | ||||||
|
|
|
|
|
|||||
| Past due three months or more (loans): |
||||||||
| Domestic |
26,630 | 23,411 | ||||||
| Foreign |
25,999 | 51,051 | ||||||
|
|
|
|
|
|||||
| Total |
52,629 | 74,462 | ||||||
|
|
|
|
|
|||||
| Restructured (loans): |
||||||||
| Domestic |
229,801 | 229,075 | ||||||
| Foreign |
127,251 | 75,184 | ||||||
|
|
|
|
|
|||||
| Total |
357,052 | 304,259 | ||||||
|
|
|
|
|
|||||
| Other impaired (loans and advances): |
||||||||
| Domestic |
123,724 | 121,936 | ||||||
| Foreign |
4,178 | 1,935 | ||||||
|
|
|
|
|
|||||
| Total |
127,902 | 123,871 | ||||||
|
|
|
|
|
|||||
| Gross impaired loans and advances |
1,390,252 | 1,290,812 | ||||||
|
|
|
|
|
|||||
| Less: Allowance for loan losses for impaired loans and advances |
(595,912 | ) | (555,490 | ) | ||||
|
|
|
|
|
|||||
| Net impaired loans and advances |
¥ | 794,340 | ¥ | 735,322 | ||||
|
|
|
|
|
|||||
22
Table of Contents
Investment Securities
Our investment securities, consisting of debt instruments at amortized cost, debt instruments at fair value through other comprehensive income and equity instruments at fair value through other comprehensive income, totaled ¥33,184,239 million at September 30, 2025, a decrease of ¥361,894 million, or 1%, from ¥33,546,133 million at March 31, 2025. The decrease in our investment securities was primarily due to a decrease in our holdings of Japanese government bonds.
Our bond portfolio is principally held for asset and liability management purposes. It mostly consisted of Japanese government bonds, U.S. Treasury securities and bonds issued or guaranteed by foreign governments, government agencies or official institutions.
Our debt instruments at amortized cost amounted to ¥1,807,246 million at September 30, 2025, an increase of ¥1,440,249 million, or 392%, from ¥366,997 million at March 31, 2025, primarily due to an increase in our holdings of Japanese government bonds.
Domestic debt instruments at fair value through other comprehensive income amounted to ¥10,614,690 million at September 30, 2025, a decrease of ¥2,034,554 million, or 16%, from ¥12,649,244 million at March 31, 2025. The decrease was primarily due to a decrease in our holdings of Japanese government bonds. As for our foreign debt instruments at fair value through other comprehensive income, we had ¥15,208,747 million of foreign debt instruments at September 30, 2025, which was a decrease of ¥150,289 million, or 1%, from ¥15,359,036 million at March 31, 2025. Most of our foreign debt instruments, including mortgage-backed securities, are issued or guaranteed by foreign governments, government agencies or official institutions. The decrease was primarily due to a decrease in our holdings of mortgage-backed securities.
We had ¥3,663,199 million of domestic equity instruments and ¥1,890,357 million of foreign equity instruments at September 30, 2025, for which we made an irrevocable election at initial recognition to present subsequent changes in fair value in other comprehensive income under IFRS 9 “Financial Instruments.” Our domestic equity instruments, which consisted principally of publicly traded Japanese stocks and included common and preferred stocks issued by our customers, increased by ¥300,203 million, or 9%, from ¥3,362,996 million at March 31, 2025. Net unrealized gains on our domestic equity instruments increased by ¥356,470 million, or 15%, from ¥2,335,356 million at March 31, 2025 to ¥2,691,826 million at September 30, 2025. The increase was primarily due to an increase in the fair value of publicly traded Japanese stocks. Net unrealized gains on our foreign equity instruments decreased by ¥1,870 million, or 0%, from ¥1,345,439 million at March 31, 2025 to ¥1,343,569 million at September 30, 2025.
We have no transactions pursuant to repurchase agreements, securities lending transactions or other transactions involving the transfer of financial assets with an obligation to repurchase such transferred assets that are treated as sales for accounting purposes.
23
Table of Contents
The following tables show the amortized cost, gross unrealized gains and losses, and fair value of our investment securities, which were classified as debt instruments at amortized cost, debt instruments at fair value through other comprehensive income and equity instruments at fair value through other comprehensive income at September 30, 2025 and March 31, 2025.
| At September 30, 2025 | ||||||||||||||||
| Amortized cost(1) |
Gross unrealized gains |
Gross unrealized losses |
Fair value | |||||||||||||
| (In millions) | ||||||||||||||||
| Debt instruments at amortized cost: |
||||||||||||||||
| Domestic: |
||||||||||||||||
| Japanese government bonds |
¥ | 1,532,359 | ¥ | — | ¥ | 11,765 | ¥ | 1,520,594 | ||||||||
| Japanese municipal bonds |
151,890 | — | 3,607 | 148,283 | ||||||||||||
| Japanese corporate bonds |
12,984 | — | 289 | 12,695 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total domestic |
1,697,233 | — | 15,661 | 1,681,572 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Foreign: |
||||||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
77,233 | 211 | 377 | 77,067 | ||||||||||||
| Mortgage-backed securities |
12,917 | 61 | 65 | 12,913 | ||||||||||||
| Other debt instruments |
19,863 | — | — | 19,863 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total foreign |
110,013 | 272 | 442 | 109,843 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
¥ | 1,807,246 | ¥ | 272 | ¥ | 16,103 | ¥ | 1,791,415 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Debt instruments at fair value through other comprehensive income: |
||||||||||||||||
| Domestic: |
||||||||||||||||
| Japanese government bonds |
¥ | 9,330,050 | ¥ | 275 | ¥ | 52,737 | ¥ | 9,277,588 | ||||||||
| Japanese municipal bonds |
794,759 | — | 41,223 | 753,536 | ||||||||||||
| Japanese corporate bonds |
641,996 | — | 58,952 | 583,044 | ||||||||||||
| Other debt instruments |
522 | — | — | 522 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total domestic |
10,767,327 | 275 | 152,912 | 10,614,690 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Foreign: |
||||||||||||||||
| U.S. Treasury and other U.S. government agency bonds |
5,752,865 | 22,501 | 188,512 | 5,586,854 | ||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
4,638,407 | 12,700 | 123,366 | 4,527,741 | ||||||||||||
| Mortgage-backed securities |
4,052,881 | 36,526 | 141,024 | 3,948,383 | ||||||||||||
| Other debt instruments |
1,141,544 | 4,367 | 142 | 1,145,769 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total foreign |
15,585,697 | 76,094 | 453,044 | 15,208,747 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
¥ | 26,353,024 | ¥ | 76,369 | ¥ | 605,956 | ¥ | 25,823,437 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Equity instruments at fair value through other comprehensive income: |
||||||||||||||||
| Domestic equity instruments |
¥ | 971,373 | ¥ | 2,703,318 | ¥ | 11,492 | ¥ | 3,663,199 | ||||||||
| Foreign equity instruments |
546,788 | 1,374,946 | 31,377 | 1,890,357 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
¥ | 1,518,161 | ¥ | 4,078,264 | ¥ | 42,869 | ¥ | 5,553,556 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
24
Table of Contents
| At March 31, 2025 | ||||||||||||||||
| Amortized cost(1) |
Gross unrealized gains |
Gross unrealized losses |
Fair value | |||||||||||||
| (In millions) | ||||||||||||||||
| Debt instruments at amortized cost: |
||||||||||||||||
| Domestic: |
||||||||||||||||
| Japanese government bonds |
¥ | 109,550 | ¥ | — | ¥ | 1,893 | ¥ | 107,657 | ||||||||
| Japanese municipal bonds |
151,882 | — | 3,980 | 147,902 | ||||||||||||
| Japanese corporate bonds |
12,982 | — | 300 | 12,682 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total domestic |
274,414 | — | 6,173 | 268,241 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Foreign: |
||||||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
66,896 | 172 | 339 | 66,729 | ||||||||||||
| Mortgage-backed securities |
13,876 | 12 | 224 | 13,664 | ||||||||||||
| Other debt instruments |
11,811 | — | — | 11,811 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total foreign |
92,583 | 184 | 563 | 92,204 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
¥ | 366,997 | ¥ | 184 | ¥ | 6,736 | ¥ | 360,445 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Debt instruments at fair value through other comprehensive income: |
||||||||||||||||
| Domestic: |
||||||||||||||||
| Japanese government bonds |
¥ | 11,232,788 | ¥ | 120 | ¥ | 52,362 | ¥ | 11,180,546 | ||||||||
| Japanese municipal bonds |
864,378 | — | 41,803 | 822,575 | ||||||||||||
| Japanese corporate bonds |
697,264 | — | 51,662 | 645,602 | ||||||||||||
| Other debt instruments |
521 | — | — | 521 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total domestic |
12,794,951 | 120 | 145,827 | 12,649,244 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Foreign: |
||||||||||||||||
| U.S. Treasury and other U.S. government agency bonds |
5,770,587 | 14,684 | 246,220 | 5,539,051 | ||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
4,649,220 | 7,557 | 125,158 | 4,531,619 | ||||||||||||
| Mortgage-backed securities |
4,382,645 | 24,871 | 169,465 | 4,238,051 | ||||||||||||
| Other debt instruments |
1,049,283 | 1,827 | 795 | 1,050,315 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total foreign |
15,851,735 | 48,939 | 541,638 | 15,359,036 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
¥ | 28,646,686 | ¥ | 49,059 | ¥ | 687,465 | ¥ | 28,008,280 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Equity instruments at fair value through other comprehensive income: |
||||||||||||||||
| Domestic equity instruments |
¥ | 1,027,640 | ¥ | 2,355,292 | ¥ | 19,936 | ¥ | 3,362,996 | ||||||||
| Foreign equity instruments |
462,421 | 1,397,871 | 52,432 | 1,807,860 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
¥ | 1,490,061 | ¥ | 3,753,163 | ¥ | 72,368 | ¥ | 5,170,856 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (1) | “Amortized cost” for equity instruments at fair value through other comprehensive income represents the difference between the fair value and gross unrealized gains or losses. |
25
Table of Contents
The following tables show the fair value and gross unrealized losses of our investment securities, aggregated by the length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2025 and March 31, 2025.
| At September 30, 2025 | ||||||||||||||||||||||||
| Less than twelve months | Twelve months or more | Total | ||||||||||||||||||||||
| Fair value | Gross unrealized losses |
Fair value | Gross unrealized losses |
Fair value | Gross unrealized losses |
|||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||
| Debt instruments at amortized cost: |
||||||||||||||||||||||||
| Domestic: |
||||||||||||||||||||||||
| Japanese government bonds |
¥ | 1,427,569 | ¥ | 10,224 | ¥ | 93,025 | ¥ | 1,541 | ¥ | 1,520,594 | ¥ | 11,765 | ||||||||||||
| Japanese municipal bonds |
4,887 | 114 | 143,396 | 3,493 | 148,283 | 3,607 | ||||||||||||||||||
| Japanese corporate bonds |
— | — | 12,695 | 289 | 12,695 | 289 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total domestic |
1,432,456 | 10,338 | 249,116 | 5,323 | 1,681,572 | 15,661 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Foreign: |
||||||||||||||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
17,394 | 298 | 14,636 | 79 | 32,030 | 377 | ||||||||||||||||||
| Mortgage-backed securities |
7,274 | 58 | 867 | 7 | 8,141 | 65 | ||||||||||||||||||
| Other debt instruments |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total foreign |
24,668 | 356 | 15,503 | 86 | 40,171 | 442 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
¥ | 1,457,124 | ¥ | 10,694 | ¥ | 264,619 | ¥ | 5,409 | ¥ | 1,721,743 | ¥ | 16,103 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Debt instruments at fair value through other comprehensive income: |
||||||||||||||||||||||||
| Domestic: |
||||||||||||||||||||||||
| Japanese government bonds |
¥ | 5,125,168 | ¥ | 23,766 | ¥ | 1,132,273 | ¥ | 28,971 | ¥ | 6,257,441 | ¥ | 52,737 | ||||||||||||
| Japanese municipal bonds |
764 | 8 | 752,763 | 41,215 | 753,527 | 41,223 | ||||||||||||||||||
| Japanese corporate bonds |
512 | 9 | 582,527 | 58,943 | 583,039 | 58,952 | ||||||||||||||||||
| Other debt instruments |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total domestic |
5,126,444 | 23,783 | 2,467,563 | 129,129 | 7,594,007 | 152,912 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Foreign: |
||||||||||||||||||||||||
| U.S. Treasury and other U.S. government agency bonds |
556,518 | 1,024 | 3,041,662 | 187,488 | 3,598,180 | 188,512 | ||||||||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
2,581,161 | 15,649 | 388,517 | 107,717 | 2,969,678 | 123,366 | ||||||||||||||||||
| Mortgage-backed securities |
438,273 | 425 | 864,617 | 140,599 | 1,302,890 | 141,024 | ||||||||||||||||||
| Other debt instruments |
206,636 | 82 | 9,940 | 60 | 216,576 | 142 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total foreign |
3,782,588 | 17,180 | 4,304,736 | 435,864 | 8,087,324 | 453,044 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
¥ | 8,909,032 | ¥ | 40,963 | ¥ | 6,772,299 | ¥ | 564,993 | ¥ | 15,681,331 | ¥ | 605,956 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Equity instruments at fair value through other comprehensive income: |
||||||||||||||||||||||||
| Domestic equity instruments |
¥ | 8,752 | ¥ | 1,038 | ¥ | 19,324 | ¥ | 10,454 | ¥ | 28,076 | ¥ | 11,492 | ||||||||||||
| Foreign equity instruments |
145,076 | 24,453 | 9,839 | 6,924 | 154,915 | 31,377 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
¥ | 153,828 | ¥ | 25,491 | ¥ | 29,163 | ¥ | 17,378 | ¥ | 182,991 | ¥ | 42,869 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
26
Table of Contents
| At March 31, 2025 | ||||||||||||||||||||||||
| Less than twelve months | Twelve months or more | Total | ||||||||||||||||||||||
| Fair value | Gross unrealized losses |
Fair value | Gross unrealized losses |
Fair value | Gross unrealized losses |
|||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||
| Debt instruments at amortized cost: |
||||||||||||||||||||||||
| Domestic: |
||||||||||||||||||||||||
| Japanese government bonds |
¥ | 30,483 | ¥ | 495 | ¥ | 77,174 | ¥ | 1,398 | ¥ | 107,657 | ¥ | 1,893 | ||||||||||||
| Japanese municipal bonds |
25,725 | 586 | 122,177 | 3,394 | 147,902 | 3,980 | ||||||||||||||||||
| Japanese corporate bonds |
7,814 | 175 | 4,868 | 125 | 12,682 | 300 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total domestic |
64,022 | 1,256 | 204,219 | 4,917 | 268,241 | 6,173 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Foreign: |
||||||||||||||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
12,925 | 244 | 20,613 | 95 | 33,538 | 339 | ||||||||||||||||||
| Mortgage-backed securities |
9,663 | 173 | 1,595 | 51 | 11,258 | 224 | ||||||||||||||||||
| Other debt instruments |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total foreign |
22,588 | 417 | 22,208 | 146 | 44,796 | 563 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
¥ | 86,610 | ¥ | 1,673 | ¥ | 226,427 | ¥ | 5,063 | ¥ | 313,037 | ¥ | 6,736 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Debt instruments at fair value through other comprehensive income: |
||||||||||||||||||||||||
| Domestic: |
||||||||||||||||||||||||
| Japanese government bonds |
¥ | 9,203,842 | ¥ | 5,573 | ¥ | 1,458,266 | ¥ | 46,789 | ¥ | 10,662,108 | ¥ | 52,362 | ||||||||||||
| Japanese municipal bonds |
2,027 | 57 | 820,537 | 41,746 | 822,564 | 41,803 | ||||||||||||||||||
| Japanese corporate bonds |
— | — | 645,589 | 51,662 | 645,589 | 51,662 | ||||||||||||||||||
| Other debt instruments |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total domestic |
9,205,869 | 5,630 | 2,924,392 | 140,197 | 12,130,261 | 145,827 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Foreign: |
||||||||||||||||||||||||
| U.S. Treasury and other U.S. government agency bonds |
1,100,245 | 11,191 | 2,644,357 | 235,029 | 3,744,602 | 246,220 | ||||||||||||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
2,748,057 | 20,580 | 380,055 | 104,578 | 3,128,112 | 125,158 | ||||||||||||||||||
| Mortgage-backed securities |
1,044,244 | 9,339 | 903,629 | 160,126 | 1,947,873 | 169,465 | ||||||||||||||||||
| Other debt instruments |
365,688 | 718 | 9,923 | 77 | 375,611 | 795 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total foreign |
5,258,234 | 41,828 | 3,937,964 | 499,810 | 9,196,198 | 541,638 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
¥ | 14,464,103 | ¥ | 47,458 | ¥ | 6,862,356 | ¥ | 640,007 | ¥ | 21,326,459 | ¥ | 687,465 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Equity instruments at fair value through other comprehensive income: |
||||||||||||||||||||||||
| Domestic equity instruments |
¥ | 38,342 | ¥ | 6,251 | ¥ | 20,913 | ¥ | 13,685 | ¥ | 59,255 | ¥ | 19,936 | ||||||||||||
| Foreign equity instruments |
82,893 | 20,619 | 50,446 | 31,813 | 133,339 | 52,432 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
¥ | 121,235 | ¥ | 26,870 | ¥ | 71,359 | ¥ | 45,498 | ¥ | 192,594 | ¥ | 72,368 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
27
Table of Contents
Trading Assets
The following table shows our trading assets at September 30, 2025 and March 31, 2025. Our trading assets were ¥5,825,732 million at September 30, 2025, a decrease of ¥350,881 million from ¥6,176,613 million at March 31, 2025. The decrease was primarily due to a decrease in our holdings of Japanese government bonds, which was partially offset by an increase in our holdings of U.S. Treasury and other U.S. government agency bonds.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Debt instruments |
¥ | 5,224,603 | ¥ | 5,511,465 | ||||
| Equity instruments |
601,129 | 665,148 | ||||||
|
|
|
|
|
|||||
| Total trading assets |
¥ | 5,825,732 | ¥ | 6,176,613 | ||||
|
|
|
|
|
|||||
Financial Assets at Fair Value Through Profit or Loss
The following table shows the fair value of our financial assets at fair value through profit or loss at September 30, 2025 and March 31, 2025. The fair value was ¥2,254,221 million at September 30, 2025, a decrease of ¥648,748 million from ¥2,902,969 million at March 31, 2025. The decrease was primarily due to a decrease in our holdings of investment funds.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Debt instruments |
¥ | 2,160,172 | ¥ | 2,820,665 | ||||
| Equity instruments |
94,049 | 82,304 | ||||||
|
|
|
|
|
|||||
| Total financial assets at fair value through profit or loss |
¥ | 2,254,221 | ¥ | 2,902,969 | ||||
|
|
|
|
|
|||||
Liabilities
Our total liabilities decreased by ¥2,633,860 million from ¥275,676,476 million at March 31, 2025 to ¥273,042,616 million at September 30, 2025, primarily due to decreases in deposits and borrowings.
The following table shows our liabilities at September 30, 2025 and March 31, 2025.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Deposits |
¥ | 187,712,124 | ¥ | 190,022,742 | ||||
| Call money and bills sold |
3,613,678 | 4,378,277 | ||||||
| Repurchase agreements and cash collateral on securities lent |
28,145,501 | 27,791,101 | ||||||
| Trading liabilities |
4,187,484 | 4,838,439 | ||||||
| Derivative financial instruments |
9,279,351 | 9,303,258 | ||||||
| Financial liabilities designated at fair value through profit or loss |
630,618 | 597,846 | ||||||
| Borrowings |
11,523,632 | 12,697,699 | ||||||
| Debt securities in issue |
15,185,629 | 14,387,415 | ||||||
| Provisions |
303,556 | 333,301 | ||||||
| Other liabilities |
11,826,470 | 10,821,441 | ||||||
| Current tax liabilities |
232,324 | 239,190 | ||||||
| Deferred tax liabilities |
402,249 | 265,767 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
¥ | 273,042,616 | ¥ | 275,676,476 | ||||
|
|
|
|
|
|||||
28
Table of Contents
Deposits
We offer a wide range of standard banking accounts through the offices of our banking subsidiaries in Japan, including non-interest-bearing demand deposits, interest-bearing demand deposits, deposits at notice, time deposits, and negotiable certificates of deposit. Domestic deposits, 73% of total deposits, are our principal source of funds for our domestic operations. The deposits in the domestic offices of our banking subsidiaries are principally from individuals and private corporations, governmental bodies (including municipal authorities), and financial institutions.
SMBC’s foreign offices accept deposits mainly in U.S. dollars, but also in yen and other currencies, and are active participants in the Euro-currency market as well as the United States domestic money market. Foreign deposits mainly consist of stable types of deposits, such as deposits at notice, time deposits and negotiable certificates of deposit.
Our deposit balances at September 30, 2025 were ¥187,712,124 million, a decrease of ¥2,310,618 million from ¥190,022,742 million at March 31, 2025, primarily due to a decrease in deposits at domestic offices. This decrease was primarily due to a decrease in deposits from corporate customers, which was partially offset by an increase in deposits from individual customers through our acquisition initiatives.
The following table shows a breakdown of our domestic and foreign offices’ deposits at September 30, 2025 and March 31, 2025.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Domestic offices: |
||||||||
| Non-interest-bearing demand deposits |
¥ | 27,549,038 | ¥ | 29,902,509 | ||||
| Interest-bearing demand deposits |
73,607,039 | 74,165,956 | ||||||
| Deposits at notice |
597,163 | 593,258 | ||||||
| Time deposits |
21,609,169 | 21,825,843 | ||||||
| Negotiable certificates of deposit |
3,827,901 | 4,264,295 | ||||||
| Others |
10,542,723 | 10,222,280 | ||||||
|
|
|
|
|
|||||
| Total domestic offices |
137,733,033 | 140,974,141 | ||||||
|
|
|
|
|
|||||
| Foreign offices: |
||||||||
| Non-interest-bearing demand deposits |
2,888,086 | 3,032,855 | ||||||
| Interest-bearing demand deposits |
6,437,915 | 6,204,646 | ||||||
| Deposits at notice |
15,071,164 | 14,062,549 | ||||||
| Time deposits |
13,081,285 | 12,656,739 | ||||||
| Negotiable certificates of deposit |
12,232,989 | 12,911,097 | ||||||
| Others |
267,652 | 180,715 | ||||||
|
|
|
|
|
|||||
| Total foreign offices |
49,979,091 | 49,048,601 | ||||||
|
|
|
|
|
|||||
| Total deposits |
¥ | 187,712,124 | ¥ | 190,022,742 | ||||
|
|
|
|
|
|||||
Borrowings
Borrowings include unsubordinated borrowings, subordinated borrowings, liabilities associated with securitization transactions of our own assets, and lease liabilities. At September 30, 2025, our borrowings were ¥11,523,632 million, a decrease of ¥1,174,067 million, or 9%, from ¥12,697,699 million at March 31, 2025, primarily due to a decrease in unsubordinated borrowings.
29
Table of Contents
The following table shows the balances with respect to our borrowings at September 30, 2025 and March 31, 2025.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Unsubordinated borrowings |
¥ | 9,928,437 | ¥ | 11,043,243 | ||||
| Subordinated borrowings |
124,092 | 130,971 | ||||||
| Liabilities associated with securitization transactions |
1,060,529 | 1,129,695 | ||||||
| Lease liabilities |
410,574 | 393,790 | ||||||
|
|
|
|
|
|||||
| Total borrowings |
¥ | 11,523,632 | ¥ | 12,697,699 | ||||
|
|
|
|
|
|||||
Debt Securities in Issue
Debt securities in issue at September 30, 2025 were ¥15,185,629 million, an increase of ¥798,214 million, or 6%, from ¥14,387,415 million at March 31, 2025, primarily due to increases in commercial paper and unsubordinated bonds.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Commercial paper |
¥ | 4,107,935 | ¥ | 3,571,097 | ||||
| Unsubordinated bonds |
9,701,975 | 9,541,764 | ||||||
| Subordinated bonds |
1,375,719 | 1,274,554 | ||||||
|
|
|
|
|
|||||
| Total debt securities in issue |
¥ | 15,185,629 | ¥ | 14,387,415 | ||||
|
|
|
|
|
|||||
Total Equity
Our total equity increased by ¥1,144,675 million from ¥16,488,594 million at March 31, 2025 to ¥17,633,269 million at September 30, 2025, primarily due to an increase in retained earnings. The increase in retained earnings mainly reflected our net profit.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Capital stock |
¥ | 2,346,888 | ¥ | 2,345,961 | ||||
| Capital surplus |
664,280 | 663,063 | ||||||
| Retained earnings |
8,455,310 | 7,836,548 | ||||||
| Treasury stock |
(38,638 | ) | (38,512 | ) | ||||
|
|
|
|
|
|||||
| Equity excluding other reserves |
11,427,840 | 10,807,060 | ||||||
| Other reserves |
3,918,430 | 3,663,135 | ||||||
|
|
|
|
|
|||||
| Equity attributable to shareholders of Sumitomo Mitsui Financial Group, Inc. |
15,346,270 | 14,470,195 | ||||||
| Non-controlling interests |
156,810 | 150,022 | ||||||
| Equity attributable to other equity instruments holders |
2,130,189 | 1,868,377 | ||||||
|
|
|
|
|
|||||
| Total equity |
¥ | 17,633,269 | ¥ | 16,488,594 | ||||
|
|
|
|
|
|||||
Liquidity
We derive funding for our operations both from domestic and international sources. Our domestic funding is derived primarily from deposits placed with SMBC by its corporate and individual customers, and also from call
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money (inter-bank), bills sold (inter-bank promissory notes), repurchase agreements, borrowings, and negotiable certificates of deposit issued by SMBC to domestic and international customers. Our international sources of funds are principally from deposits from corporate customers and foreign central banks, negotiable certificates of deposit, bonds, commercial paper, and also from repurchase agreements and cash collateral on securities lent. We closely monitor maturity gaps and foreign exchange exposure in order to manage our liquidity profile.
As shown in the following table, total deposits decreased by ¥2,310,618 million from ¥190,022,742 million at March 31, 2025 to ¥187,712,124 million at September 30, 2025. The balance of deposits at September 30, 2025 exceeded the balance of loans and advances by ¥60,623,462 million, primarily due to the stable deposit base in Japan. Our loan-to-deposit ratio (total loans and advances divided by total deposits) in the same period was 68%, which contributed greatly to the reduction of our liquidity risk. Our balances of large-denomination domestic yen time deposits are stable due to the historically high rollover rate of our corporate customers and individual depositors.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In millions) | ||||||||
| Loans and advances |
¥ | 127,088,662 | ¥ | 125,190,819 | ||||
| Deposits |
187,712,124 | 190,022,742 | ||||||
We have invested the excess balance of deposits against loans and advances primarily in marketable securities and other highly liquid assets, such as Japanese government bonds. SMBC’s Global Markets Business Unit actively monitors the movement of interest rates and maturity profile of its bond portfolio as part of SMBC’s overall risk management. The bonds can be used to enhance liquidity. When needed, they can be used as collateral for call money or other money market funding or short-term borrowings from the BOJ.
Secondary sources of liquidity include short-term debts, such as call money, bills sold, and commercial paper issued at an inter-bank or other wholesale markets. We also issue long-term debts, including both senior and subordinated debts, as additional sources of liquidity. With short- and long-term debts, we can diversify our funding sources, effectively manage our funding costs and enhance our capital adequacy ratios when appropriate.
We source our funding in foreign currencies primarily from financial institutions, general corporations, and institutional investors, through short- and long-term financing. Even if we encounter declines in our credit quality or that of Japan in the future, we expect to be able to purchase foreign currencies in sufficient amounts using the yen funds raised through our domestic customer base. As further measures to support our foreign currency liquidity, we hold foreign debt securities, maintain credit lines and swap facilities denominated in foreign currencies, and pledge collateral to the U.S. Federal Reserve Bank.
We maintain management and control systems to support our ability to access liquidity on a stable and cost-effective basis.
We believe we are able to access such sources of liquidity on a stable and flexible basis by keeping credit ratings at a high level. The following table shows credit ratings assigned to the Company by Moody’s Japan K.K., (“Moody’s”), S&P Global Ratings Japan Inc. (“S&P”) and Fitch Ratings Japan Limited (“Fitch”) at November 30, 2025.
| At November 30, 2025 | ||||||||||||||||
| Moody’s |
S&P |
Fitch | ||||||||||||||
| Long-term |
Outlook |
Short-term |
Long-term |
Outlook |
Short-term |
Long-term |
Outlook |
Short-term | ||||||||
| A1 |
S | P-1 | A- | S | — | A- | S | F1 | ||||||||
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The following table shows credit ratings assigned to SMBC by Moody’s, S&P and Fitch at November 30, 2025.
| At November 30, 2025 | ||||||||||||||||
| Moody’s |
S&P |
Fitch | ||||||||||||||
| Long-term |
Outlook |
Short-term |
Long-term |
Outlook |
Short-term |
Long-term |
Outlook |
Short-term | ||||||||
| A1 |
S | P-1 | A | S | A-1 | A | S | F1 | ||||||||
We are assigned credit ratings by major domestic and international credit rating agencies. Credit ratings do not constitute recommendations to purchase, sell or hold a security, and rating agencies may review or indicate an intention to review ratings at any time. While the methodology and rating system vary among rating agencies, credit ratings are generally based on information provided by us or independent sources, and can be influenced by the credit ratings of Japanese government bonds and broader views of the Japanese financial system. Any downgrade in or withdrawal of these credit ratings, or any adverse change in these ratings relative to other financial institutions, could increase our borrowing costs, reduce our access to the capital markets and otherwise negatively affect our ability to raise funds, which in turn could have a negative impact on our liquidity position.
The guidelines published by the Financial Services Agency of Japan (“FSA”) for liquidity coverage ratio (“LCR”) and net stable funding ratio (“NSFR”) applicable to banks and bank holding companies with international operations are based on the full text of the LCR and NSFR standard issued by the BCBS in January 2013 and October 2014, respectively. Under these guidelines, banks and bank holding companies with international operations must maintain LCRs and NSFRs of at least 100% on both a consolidated basis and a nonconsolidated basis. The following tables show the Company’s and SMBC’s LCRs for the three months ended September 30, 2025 and NSFRs at September 30, 2025. Each figure is calculated based on our financial statements prepared in accordance with Japanese GAAP, as required by the FSA’s LCR and NSFR guidelines.
Liquidity coverage ratio:
| For the three months ended September 30, 2025(1) |
||||
| SMFG (consolidated) |
132.0 | % | ||
| SMBC (consolidated) |
138.3 | % | ||
| SMBC (nonconsolidated) |
144.1 | % | ||
| (1) | Under the FSA’s LCR guidelines, the LCR for the three months ended September 30, 2025 is set as the three-month average of daily LCRs for the same three months, which is calculated by dividing the balance of high-quality liquid assets by the total net cash outflows on a daily basis for the same three months. |
Net stable funding ratio:
| At September 30, 2025(1) | ||||
| SMFG (consolidated) |
113.2 | % | ||
| SMBC (consolidated) |
120.3 | % | ||
| SMBC (nonconsolidated) |
119.3 | % | ||
| (1) | Under the FSA’s NSFR guidelines, the NSFR is calculated by dividing the available amount of stable funding by the required amount of stable funding. |
For further information, see “Item 4.B. Business Overview—Regulations in Japan—Regulations Regarding Capital Adequacy and Liquidity—Liquidity Requirement” of our annual report on Form 20-F for the fiscal year ended March 31, 2025.
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Capital Management
With regard to capital management, we strictly abide by the capital adequacy guidelines set by the FSA. Japan’s capital adequacy guidelines are based on the Basel Capital Accord, which was proposed by the BCBS for uniform application to all banks which have international operations in industrialized countries. Japan’s capital adequacy guidelines may be different from those of central banks or supervisory bodies of other countries because they have been designed by the FSA to suit the Japanese banking environment. Our banking subsidiaries outside of Japan are also subject to the local capital ratio requirements.
Each figure for the FSA capital adequacy guidelines is calculated based on our financial statements prepared under Japanese GAAP.
The FSA capital adequacy guidelines permit Japanese banks to choose from the standardized approach, the foundation internal ratings-based (“IRB”) approach and the advanced IRB approach for measuring credit risk. Banks are permitted to calculate the Internal Loss Multiplier (“ILM”) using internal loss data for measuring operational risk, provided that specific conditions are met. To be eligible to adopt the foundation IRB approach or the advanced IRB approach for measuring credit risk, and to calculate the ILM with internal loss data for measuring operational risk, a Japanese bank must establish advanced risk management systems and receive prior approval from the FSA.
We and SMBC have adopted the advanced IRB approach for measuring credit risk since March 2009 and the standardized measurement approach by using the ILM for measuring operational risk since March 2024.
In December 2010, the BCBS published the new Basel III rules text to implement the Basel III framework, which sets out higher and better-quality capital, better risk coverage, the introduction of a leverage ratio as a backstop to the risk-based requirement, measures to promote the build-up of capital that can be drawn down in periods of stress, and the introduction of two global liquidity standards. The main measures of the minimum capital requirements in the Basel III framework began in January 2013 and have been fully applied from January 2019. The minimum common equity requirement, the minimum Tier 1 capital requirement and the total minimum capital requirement have been 4.5%, 6% and 8%, respectively, since January 2015. Moreover, banks have been required to hold a capital conservation buffer of 2.5% to withstand future periods of stress since January 2019. As a result, taking the capital conservation buffer into account, the minimum common equity requirement, the minimum Tier 1 capital requirement and the total minimum capital requirement have been 7%, 8.5% and 10.5%, respectively, since January 2019. Furthermore, a countercyclical buffer within a range of 0% to 2.5% of common equity or other fully loss-absorbing capital has been implemented according to national circumstances and we are required to hold a countercyclical buffer of 0.17% at September 30, 2025.
In addition to the above-mentioned minimum capital requirements and capital buffer requirements under Basel III, organizations identified by the FSB as G-SIBs, which includes us, are required to maintain an additional 1% to 2.5% of Common Equity Tier 1 capital as a percentage of risk-weighted assets based on the organization’s size, interconnectedness, substitutability, complexity and cross-jurisdictional activity as determined by the FSB. The amount of G-SIB capital surcharge that applies to us based on the FSB’s determination is 1%. The FSB updates its list of G-SIBs on an annual basis.
To reflect the Basel III framework, the FSA changed its capital adequacy guidelines. The minimum Common Equity Tier 1 capital requirement, Tier 1 capital requirement and total capital requirement have been 4.5%, 6% and 8%, respectively, since March 2015. The capital conservation buffer, countercyclical buffer and the G-SIB capital surcharge started to be phased in from March 2016 and have been fully applied from March 2019 under the FSA capital adequacy guidelines.
In December 2017, the Group of Central Bank Governors and Heads of Supervision finalized the Basel III regulatory reforms, and Japanese regulations in accordance with the finalized reforms have been applied to banks
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and bank holding companies with international operations since March 2024. For further information regarding the finalized Basel III reforms, see “Item 4.B. Business Overview—Regulations in Japan—Regulations Regarding Capital Adequacy and Liquidity—Capital Adequacy Requirement” of our annual report on Form 20-F for the fiscal year ended March 31, 2025.
In March 2015, the FSA published its leverage ratio guidelines, which have been applied from March 2015, to help ensure broad and adequate capture of both on- and off-balance sheet sources of leverage for internationally active banks. The FSA’s leverage ratio guidelines are based on the text of the leverage ratio framework and disclosure requirements issued by the BCBS in January 2014.
In December 2017, the definition and requirements of the leverage ratio were revised as part of the finalized Basel III reforms, under which the leverage ratio is based on a Tier 1 definition of capital and with the minimum leverage ratio of 3%. Under the finalized Basel III reforms, G-SIBs are required to meet a leverage ratio buffer, which takes the form of a Tier 1 capital buffer set at 50% of the applicable G-SIB capital surcharge. Various refinements were also made to the definition of the leverage ratio exposure measure. The leverage ratio requirements under the definition based on the framework issued by the BCBS in January 2014 were implemented as a Pillar 1 measurement from January 2018, and those under the revised definition and the leverage ratio buffer requirement for G-SIBs were implemented as a Pillar 1 measurement from January 2023.
In March 2019, the FSA published its guidelines for the leverage ratio applicable to banks and bank holding companies with international operations, which have been applied from March 2019. Under the FSA’s guidelines for the leverage ratio, banks and bank holding companies with international operations must maintain a leverage ratio of at least 3% on both a consolidated basis and a nonconsolidated basis for banks and on a consolidated basis for bank holding companies.
In June 2020, the FSA published and implemented amendments to its guidelines for the leverage ratio, which mainly exclude deposits with the BOJ from the denominator for the calculation of the leverage ratio in order to maintain harmonization with the monetary policy implemented by the BOJ and the prudential regulations for banks and other financial institutions. In July 2022, the FSA published amendments to its guidelines for the leverage ratio. Under the amended guidelines, the leverage ratio buffer requirement for G-SIBs in Japan took effect from March 31, 2023, while the finalized definition of the leverage ratio exposure measure took effect from March 31, 2024, except for banks that had notified the FSA that they wished to apply the amended requirements earlier. Furthermore, in November 2022, the FSA published amendments to its guidelines for the leverage ratio, which provided that, effective from April 1, 2024, the minimum leverage ratio was increased from 3% to 3.15%, the minimum leverage-based Total Loss-Absorbing Capacity ratio was increased from 6.75% to 7.10% and the leverage buffer applicable to G-SIBs was increased by 0.05%, while continuing to exclude amounts of deposits with the BOJ from the total exposure, taking into account exceptional macroeconomic conditions and other circumstances.
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The table below presents our risk-weighted capital ratios, total capital, risk-weighted assets and leverage ratio under Japanese GAAP at September 30, 2025 and March 31, 2025, based on the Basel III rules.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In billions, except percentages) | ||||||||
| SMFG Consolidated: |
||||||||
| Total risk-weighted capital ratio |
15.62 | % | 15.18 | % | ||||
| Tier 1 risk-weighted capital ratio |
14.59 | % | 14.23 | % | ||||
| Common Equity Tier 1 risk-weighted capital ratio |
12.59 | % | 12.44 | % | ||||
| Total capital |
¥ | 14,813.2 | ¥ | 14,144.1 | ||||
| Tier 1 capital |
13,838.4 | 13,258.8 | ||||||
| Common Equity Tier 1 capital |
11,937.7 | 11,585.1 | ||||||
| Risk-weighted assets |
94,789.4 | 93,117.1 | ||||||
| The amount of minimum total capital requirements(1) |
7,583.2 | 7,449.4 | ||||||
| Leverage ratio |
5.17 | % | 5.01 | % | ||||
| (1) | The amount of minimum total capital requirements is calculated by multiplying risk-weighted assets by 8%. |
Common Equity Tier 1 capital consists primarily of capital stock, capital surplus and retained earnings relating to common shares, unrealized gains and losses included in accumulated other comprehensive income, and non-controlling interests that meet the criteria set forth in the FSA capital adequacy guidelines for inclusion in Common Equity Tier 1 capital.
Non-controlling interests arising from the issue of common shares by a fully consolidated subsidiary of a bank may receive recognition in Common Equity Tier 1 capital only if: (1) the instrument giving rise to the non-controlling interest would, if issued by the bank, meet all of the criteria set forth in the FSA capital adequacy guidelines for classification as common shares for regulatory capital purposes; and (2) the subsidiary that issued the instrument is itself a bank or other financial institution subject to similar capital adequacy guidelines.
Regulatory adjustments such as goodwill and other intangibles, deferred tax assets, investments in the common equity capital of banking, financial and insurance entities and defined benefit pension fund assets and liabilities are applied mainly to the calculation of Common Equity Tier 1 capital in the form of a deduction.
Additional Tier 1 capital consists primarily of perpetual subordinated bonds.
Tier 2 capital consists primarily of subordinated debt securities.
Our capital position and SMBC’s capital position depend in part on the fair market value of our investment securities portfolio, since unrealized gains and losses are included in the amount of regulatory capital and have been fully counted as Common Equity Tier 1 capital since March 2018. Since our other securities (including money held in trust) with a readily ascertainable market value included unrealized gains and losses, substantial fluctuations in the Japanese stock markets may affect our capital position and the capital position of SMBC.
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Set forth below is a table of risk-weighted capital ratios, total capital, risk-weighted assets and leverage ratio of SMBC at September 30, 2025 and March 31, 2025 on a consolidated and nonconsolidated basis.
| At September 30, 2025 |
At March 31, 2025 |
|||||||
| (In billions, except percentages) | ||||||||
| SMBC Consolidated: |
||||||||
| Total risk-weighted capital ratio |
16.96 | % | 16.78 | % | ||||
| Tier 1 risk-weighted capital ratio |
15.45 | % | 15.32 | % | ||||
| Common Equity Tier 1 risk-weighted capital ratio |
12.33 | % | 12.50 | % | ||||
| Total capital |
¥ | 13,910.2 | ¥ | 13,593.3 | ||||
| Tier 1 capital |
12,675.1 | 12,410.7 | ||||||
| Common Equity Tier 1 capital |
10,113.4 | 10,129.9 | ||||||
| Risk-weighted assets |
82,010.8 | 81,008.5 | ||||||
| The amount of minimum total capital requirements(1) |
6,560.9 | 6,480.7 | ||||||
| Leverage ratio |
5.12 | % | 5.10 | % | ||||
| SMBC Nonconsolidated: |
||||||||
| Total risk-weighted capital ratio |
15.71 | % | 14.72 | % | ||||
| Tier 1 risk-weighted capital ratio |
13.92 | % | 13.03 | % | ||||
| Common Equity Tier 1 risk-weighted capital ratio |
10.55 | % | 10.01 | % | ||||
| Total capital |
¥ | 11,680.9 | ¥ | 10,832.3 | ||||
| Tier 1 capital |
10,351.3 | 9,589.8 | ||||||
| Common Equity Tier 1 capital |
7,848.0 | 7,365.2 | ||||||
| Risk-weighted assets |
74,346.6 | 73,556.5 | ||||||
| The amount of minimum total capital requirements(1) |
5,947.7 | 5,884.5 | ||||||
| Leverage ratio |
4.75 | % | 4.41 | % | ||||
| (1) | The amount of minimum total capital requirements is calculated by multiplying risk-weighted assets by 8%. |
Our securities subsidiary in Japan, SMBC Nikko Securities is also subject to capital adequacy requirements under the Financial Instruments and Exchange Act of Japan. At September 30, 2025, the capital adequacy ratio was 375.5% for SMBC Nikko Securities, and sufficiently above 140%, below which level it would be required to file daily reports with the Commissioner of the FSA.
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FINANCIAL RISK MANAGEMENT
Risk Management System
Our risk management system is described in the “Quantitative and Qualitative Information about Risk Management” section within Item 11, “Quantitative and Qualitative Disclosures about Credit, Market and Other Risk,” of our annual report on Form 20-F for the fiscal year ended March 31, 2025. There were no material changes in our risk management system for the six months ended September 30, 2025.
Credit Risk
Our credit risk management system is described in the “Credit Risk” section within Item 11 of our annual report on Form 20-F for the fiscal year ended March 31, 2025. There were no material changes in our credit risk management system for the six months ended September 30, 2025.
Market Risk
Our market risk management system is described in the “Market Risk and Liquidity Risk” section within Item 11 of our annual report on Form 20-F for the fiscal year ended March 31, 2025.
Our market risk can be divided into various factors: interest rates, foreign exchange rates, equity prices and option risks. We manage each of these risks by employing the value at risk (“VaR”) method as well as supplemental indicators suitable for managing each risk, such as the basis point value (“BPV”).
VaR is the largest predicted loss that is possible given a fixed confidence interval. For example, our VaR indicates the largest loss that is possible for a holding period of one day and a confidence interval of 99.0%. BPV is the amount of change in assessed value as a result of a one-basis-point (0.01%) movement in interest rates.
The principal SMBC Group companies’ internal VaR model makes use of historical data to prepare scenarios for market fluctuations and, by conducting simulations of gains and losses on a net position basis, the model estimates the potential losses that may occur. The VaR calculation method we employ for both trading and non-trading activities is based mainly on the following:
| • | the historical simulation method; |
| • | a one-sided confidence interval of 99.0%; |
| • | a one-day holding period (a one-year holding period for the equity holding investment portfolio); and |
| • | an observation period of four years (ten years for the equity holding investment portfolio). |
This method is reviewed periodically and refined, if necessary.
VaR Summary
The following tables set forth our VaR for trading activities and non-trading activities by risk categories for the six months ended September 30, 2025.
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VaR for Trading Activities
| Interest rate risk |
Foreign exchange risk |
Equities and commodities risk |
Others | Total(1) | ||||||||||||||||
| (In billions) | ||||||||||||||||||||
| For the six months ended September 30, 2025: |
||||||||||||||||||||
| SMBC Consolidated |
||||||||||||||||||||
| Maximum |
¥ | 12.0 | ¥ | 9.1 | ¥ | 1.5 | ¥ | 23.9 | ¥ | 29.3 | ||||||||||
| Minimum |
5.9 | 4.8 | 0.2 | 15.6 | 21.5 | |||||||||||||||
| Daily average |
8.8 | 6.8 | 0.6 | 19.7 | 25.3 | |||||||||||||||
| At September 30, 2025 |
11.3 | 7.9 | 0.4 | 23.8 | 28.6 | |||||||||||||||
| At March 31, 2025 |
5.7 | 5.4 | 0.2 | 19.1 | 23.9 | |||||||||||||||
| SMFG Consolidated |
||||||||||||||||||||
| Maximum |
¥ | 24.2 | ¥ | 10.7 | ¥ | 8.3 | ¥ | 23.9 | ¥ | 47.6 | ||||||||||
| Minimum |
16.0 | 6.5 | 2.8 | 15.6 | 38.3 | |||||||||||||||
| Daily average |
20.6 | 8.5 | 4.3 | 19.7 | 42.2 | |||||||||||||||
| At September 30, 2025 |
21.9 | 9.9 | 5.6 | 23.8 | 46.2 | |||||||||||||||
| At March 31, 2025 |
18.3 | 7.1 | 3.0 | 19.1 | 40.8 | |||||||||||||||
| (1) | Total for “Maximum,” “Minimum” and “Daily average” represent the maximum, minimum and daily average of the total of the trading book. |
VaR for Non-Trading Activities
• Banking
| Interest rate risk |
Foreign exchange risk |
Equities and commodities risk |
Others | Total(1) | ||||||||||||||||
| (In billions) | ||||||||||||||||||||
| For the six months ended September 30, 2025: |
||||||||||||||||||||
| SMBC Consolidated |
||||||||||||||||||||
| Maximum |
¥ | 108.8 | ¥ | 1.1 | ¥ | 32.2 | ¥ | 0.0 | ¥ | 109.2 | ||||||||||
| Minimum |
66.2 | 0.0 | 19.8 | 0.0 | 63.8 | |||||||||||||||
| Daily average |
83.4 | 0.3 | 23.0 | 0.0 | 84.9 | |||||||||||||||
| At September 30, 2025 |
103.6 | 0.1 | 20.0 | 0.0 | 106.8 | |||||||||||||||
| At March 31, 2025 |
61.3 | 0.1 | 32.6 | 0.0 | 62.5 | |||||||||||||||
| SMFG Consolidated |
||||||||||||||||||||
| Maximum |
¥ | 110.1 | ¥ | 1.1 | ¥ | 32.2 | ¥ | 0.0 | ¥ | 110.5 | ||||||||||
| Minimum |
67.3 | 0.0 | 19.8 | 0.0 | 64.9 | |||||||||||||||
| Daily average |
84.7 | 0.3 | 23.0 | 0.0 | 86.1 | |||||||||||||||
| At September 30, 2025 |
104.9 | 0.1 | 20.0 | 0.0 | 108.1 | |||||||||||||||
| At March 31, 2025 |
62.5 | 0.1 | 32.6 | 0.0 | 63.6 | |||||||||||||||
| (1) | Total for “Maximum,” “Minimum” and “Daily average” represent the maximum, minimum and daily average of the total of the banking book. |
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• Equity Holding Investment
| Equities risk | ||||
| (In billions) | ||||
| For the six months ended September 30, 2025: |
||||
| SMBC Consolidated |
||||
| Maximum |
¥ | 1,213.1 | ||
| Minimum |
832.8 | |||
| Daily average |
1,033.1 | |||
| At September 30, 2025 |
1,174.9 | |||
| At March 31, 2025 |
960.3 | |||
| SMFG Consolidated |
||||
| Maximum |
¥ | 1,561.6 | ||
| Minimum |
1,147.9 | |||
| Daily average |
1,385.8 | |||
| At September 30, 2025 |
1,518.3 | |||
| At March 31, 2025 |
1,323.4 | |||
Back-testing
The relationship between the VaR calculated with the model and the profit and loss data is back-tested periodically. There were no significant excess losses in the back-testing results, including from the trading accounts.
Stress Tests
To prepare for unexpected market swings, we perform stress tests on a monthly basis based on various scenarios.
Interest Rate Risk
To supplement the above limitations of VaR methodologies, the SMBC Group adopts various indices to measure and monitor the sensitivity of interest rates, including delta, gamma and vega risks. The SMBC Group considers BPV as one of the most significant indices to manage interest rate risk. BPV is the amount of change in the value to the banking and trading book as a result of a one-basis-point (0.01%) movement in interest rates. The principal SMBC Group companies use BPV to monitor interest rate risk, not only on a net basis, but also by term to prevent the concentration of interest rate risk in a specific period. In addition, as previously addressed, the SMBC Group enhances the risk management methods of VaR and BPV by using them in combination with back-testing and stress tests.
Interest rate risk substantially changes depending on the method used for recognizing the expected maturity dates of demand deposits that can be withdrawn at any time or the method used for estimating the timing of cancellation prior to maturity of time deposits and consumer housing loans. At SMBC, the maturity of demand deposits that are expected to be left with SMBC for a prolonged period is regarded to be at the longest, ten years, and the cancellation prior to maturity of time deposits and consumer housing loans is estimated based on historical data.
Based on the standards for interest rate risk in the banking book issued by the BCBS in April 2016, the FSA revised the related regulatory guidelines pertaining to monitoring of interest rate risks in the banking book in December 2017. The revised disclosure requirements with respect to the changes in economic value of equity (“ΔEVE”) and changes in net interest income (“ΔNII”) in the banking book as a result of interest rate shocks
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Table of Contents
have been applied from March 31, 2018. The tables below present ΔEVE and ΔNII of SMBC and SMFG on a consolidated basis at September 30, 2025 and March 31, 2025, respectively.
ΔEVE is defined as a decline in economic value as a result of an interest rate shock. It is calculated by multiplying the interest rate sensitivity (excluding credit spread) and interest rate change. The FSA implements a “materiality test” to identify banks taking excessive interest rate risks. Under the materiality test, the FSA monitors the ratio of ΔEVE to Tier 1 capital based on a set of prescribed interest rate shock scenarios. The threshold applied by the FSA is 15%, and the ratios for SMBC on a consolidated basis at September 30, 2025 and March 31, 2025 were 4.5% and 3.0%, respectively, and those for SMFG on a consolidated basis at September 30, 2025 and March 31, 2025 were 4.1% and 2.9%, respectively.
ΔNII is defined as a decline in interest income over a 12-month period as a result of an interest rate shock. It is calculated assuming a constant balance sheet over a forward-looking 12-month period.
| At September 30, 2025 | At March 31, 2025 | |||||||||||||||
| ΔEVE | ΔNII | ΔEVE | ΔNII | |||||||||||||
| (In billions) | ||||||||||||||||
| SMBC Consolidated |
||||||||||||||||
| Parallel shock up |
¥ | 573.1 | ¥ | (266.5 | ) | ¥ | 378.3 | ¥ | (251.5 | ) | ||||||
| Parallel shock down |
87.1 | 396.3 | 107.4 | 378.6 | ||||||||||||
| Steepener shock |
49.3 | — | 19.2 | — | ||||||||||||
| Flattener shock |
277.4 | — | 281.4 | — | ||||||||||||
| Short rate shock up |
340.1 | — | 342.4 | — | ||||||||||||
| Short rate shock down |
7.0 | — | 11.5 | — | ||||||||||||
| Maximum |
573.1 | 396.3 | 378.3 | 378.6 | ||||||||||||
| At September 30, 2025 | At March 31, 2025 | |||||||||||||||
| (In billions) | ||||||||||||||||
| Tier 1 Capital |
¥ | 12,675.1 | ¥ | 12,410.7 | ||||||||||||
| At September 30, 2025 | At March 31, 2025 | |||||||||||||||
| ΔEVE | ΔNII | ΔEVE | ΔNII | |||||||||||||
| (In billions) | ||||||||||||||||
| SMFG Consolidated |
||||||||||||||||
| Parallel shock up |
¥ | 573.1 | ¥ | (266.5 | ) | ¥ | 378.3 | ¥ | (251.5 | ) | ||||||
| Parallel shock down |
87.1 | 396.3 | 107.4 | 378.6 | ||||||||||||
| Steepener shock |
49.3 | — | 19.2 | — | ||||||||||||
| Flattener shock |
277.4 | — | 281.4 | — | ||||||||||||
| Short rate shock up |
340.1 | — | 342.4 | — | ||||||||||||
| Short rate shock down |
7.0 | — | 11.5 | — | ||||||||||||
| Maximum |
573.1 | 396.3 | 378.3 | 378.6 | ||||||||||||
| At September 30, 2025 | At March 31, 2025 | |||||||||||||||
| (In billions) | ||||||||||||||||
| Tier 1 Capital |
¥ | 13,838.4 | ¥ | 13,258.8 | ||||||||||||
| Note: | ΔEVE and ΔNII are calculated by currency at the SMBC consolidated level and the results are aggregated across the various currencies. For ΔNII, only Japanese yen and U.S. dollars are included in the calculation. These are the material currencies where interest rate sensitive assets and liabilities are more than 5% of total assets and liabilities. |
40
Table of Contents
| Page | ||||||
Consolidated Statements of Financial Position (Unaudited) |
F-2 |
|||||
Consolidated Income Statements (Unaudited) |
F-3 |
|||||
Consolidated Statements of Comprehensive Income (Unaudited) |
F-4 |
|||||
Consolidated Statements of Changes in Equity (Unaudited) |
F-5 |
|||||
Consolidated Statements of Cash Flows (Unaudited) |
F-6 |
|||||
Notes to Consolidated Financial Statements (Unaudited) |
F-7 |
|||||
| 1 | General Information | F-7 |
||||
| 2 | Summary of Material Accounting Policies | F-7 |
||||
| 3 | Critical Accounting Estimates and Judgments | F-9 |
||||
| 4 | Segment Analysis | F-9 |
||||
| 5 | Derivative Financial Instruments and Hedge Accounting | F-12 |
||||
| 6 | Investment Securities | F-16 |
||||
| 7 | Loans and Advances | F-17 |
||||
| 8 | Borrowings | F-20 |
||||
| 9 | Debt Securities in Issue | F-20 |
||||
| 10 | Provisions | F-21 |
||||
| 11 | Shareholders’ Equity | F-22 |
||||
| 12 | Equity Attributable to Other Equity Instruments Holders | F-23 |
||||
| 13 | Fee and Commission Income | F-24 |
||||
| 14 | Impairment Charges on Financial Assets | F-25 |
||||
| 15 | Earnings Per Share | F-25 |
||||
| 16 | Dividends Per Share | F-26 |
||||
| 17 | Contingency and Capital Commitments | F-26 |
||||
| 18 | Fair Value of Financial Assets and Liabilities | F-27 |
||||
Note |
At September 30, 2025 |
At March 31, 2025 |
||||||||||
(In millions) |
||||||||||||
| Assets: |
||||||||||||
| Cash and deposits with banks |
¥ | ¥ | ||||||||||
| Call loans and bills bought |
||||||||||||
| Reverse repurchase agreements and cash collateral on securities borrowed |
||||||||||||
| Trading assets |
||||||||||||
| Derivative financial instruments |
5 | |||||||||||
| Financial assets at fair value through profit or loss |
||||||||||||
| Investment securities |
6 | |||||||||||
| Loans and advances |
7 | |||||||||||
| Investments in associates and joint ventures |
||||||||||||
| Property, plant and equipment |
||||||||||||
| Intangible assets |
||||||||||||
| Other assets |
||||||||||||
| Current tax assets |
||||||||||||
| Deferred tax assets |
||||||||||||
| |
|
|
|
|||||||||
| Total assets |
¥ | |
¥ | |
||||||||
| |
|
|
|
|||||||||
| Liabilities: |
||||||||||||
| Deposits |
¥ | ¥ | ||||||||||
| Call money and bills sold |
||||||||||||
| Repurchase agreements and cash collateral on securities lent |
||||||||||||
| Trading liabilities |
||||||||||||
| Derivative financial instruments |
5 | |||||||||||
| Financial liabilities designated at fair value through profit or loss |
||||||||||||
| Borrowings |
8 | |||||||||||
| Debt securities in issue |
9 | |||||||||||
| Provisions |
10 | |||||||||||
| Other liabilities |
||||||||||||
| Current tax liabilities |
||||||||||||
| Deferred tax liabilities |
||||||||||||
| |
|
|
|
|||||||||
| Total liabilities |
||||||||||||
| |
|
|
|
|||||||||
| Equity: |
||||||||||||
| Capital stock |
11 | |||||||||||
| Capital surplus |
||||||||||||
| Retained earnings |
||||||||||||
| Treasury stock |
11 | ( |
) | ( |
) | |||||||
| |
|
|
|
|||||||||
| Equity excluding other reserves |
||||||||||||
| Other reserves |
||||||||||||
| |
|
|
|
|||||||||
| Equity attributable to shareholders of Sumitomo Mitsui Financial Group, Inc. |
||||||||||||
| Non-controlling interests |
||||||||||||
| Equity attributable to other equity instruments holders |
12 | |||||||||||
| |
|
|
|
|||||||||
| Total equity |
||||||||||||
| |
|
|
|
|||||||||
| Total equity and liabilities |
¥ | ¥ | ||||||||||
| |
|
|
|
|||||||||
For the six months ended September 30, |
||||||||||||
Note |
2025 |
2024 |
||||||||||
(In millions, except per share data) |
||||||||||||
Interest income |
¥ | ¥ | ||||||||||
Interest expense |
||||||||||||
Net interest income |
||||||||||||
Fee and commission income |
13 | |||||||||||
Fee and commission expense |
||||||||||||
Net fee and commission income |
||||||||||||
Net trading loss |
( |
) |
( |
) | ||||||||
Net income (loss) from financial assets and liabilities at fair value through profit or loss |
( |
) | ||||||||||
Net investment income |
||||||||||||
Net gains (losses) arising from derecognition of financial assets at amortized cost (1) |
( |
) | ||||||||||
Other income (1) |
||||||||||||
Total operating income (1) |
||||||||||||
Impairment charges on financial assets |
14 | |||||||||||
Net operating income (1) |
||||||||||||
General and administrative expenses |
||||||||||||
Other expenses (1) |
||||||||||||
Operating expenses (1) |
||||||||||||
Share of post-tax profit of associates and joint ventures |
||||||||||||
Profit before tax |
||||||||||||
Income tax expense |
||||||||||||
Net profit |
¥ | |
¥ | |
||||||||
Profit attributable to: |
||||||||||||
Shareholders of Sumitomo Mitsui Financial Group, Inc. |
¥ | ¥ | ||||||||||
Non-controlling interests |
||||||||||||
Other equity instruments holders |
||||||||||||
Earnings per share (2) : |
||||||||||||
Basic |
15 | ¥ | ¥ | |||||||||
Diluted |
15 | |||||||||||
| (1) | For the six months ended September 30, 2025, the Group presented “Net gains (losses) arising from derecognition of financial assets at amortized cost” as a separate line item in the consolidated income statements. This line item was not presented separately in the same period in the previous year but was included within “Other income” and “Other expenses.” The comparative amounts have been restated to conform to the current presentation. |
| (2) | As resolved by the board of directors on May 15, 2024, the Company implemented a stock split of its common stock with an effective date of October 1, 2024, whereby 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 was split into |
For the six months ended September 30, |
||||||||||||
2025 |
2024 |
|||||||||||
(In millions) |
||||||||||||
Net profit |
¥ | |
¥ | |
||||||||
Other comprehensive income: |
||||||||||||
Items that will not be reclassified to profit or loss: |
||||||||||||
Remeasurements of defined benefit plans: |
||||||||||||
Gains (losses) arising during the period, before tax |
||||||||||||
Equity instruments at fair value through other comprehensive income: |
||||||||||||
Gains (losses) arising during the period, before tax |
( |
) | ||||||||||
Own credit on financial liabilities designated at fair value through profit or loss: |
||||||||||||
Gains (losses) arising during the period, before tax |
||||||||||||
Share of other comprehensive income (loss) of associates and joint ventures |
||||||||||||
Income tax relating to items that will not be reclassified |
( |
) | ||||||||||
Total items that will not be reclassified to profit or loss, net of tax |
( |
) | ||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||
Debt instruments at fair value through other comprehensive income: |
||||||||||||
Gains (losses) arising during the period, before tax |
||||||||||||
Reclassification adjustments for (gains) losses included in net profit, before tax |
( |
) | ( |
) | ||||||||
Exchange differences on translating foreign operations: |
||||||||||||
Gains (losses) arising during the period, before tax |
( |
) | ( |
) | ||||||||
Reclassification adjustments for (gains) losses included in net profit, before tax |
||||||||||||
Share of other comprehensive income (loss) of associates and joint ventures |
( |
) | ||||||||||
Income tax relating to items that may be reclassified |
( |
) |
( |
) | ||||||||
Total items that may be reclassified subsequently to profit or loss, net of tax |
||||||||||||
Other comprehensive income (loss), net of tax |
( |
) | ||||||||||
Total comprehensive income |
¥ | |
¥ | |
||||||||
Total comprehensive income attributable to: |
||||||||||||
Shareholders of Sumitomo Mitsui Financial Group, Inc. |
¥ | ¥ | ||||||||||
Non-controlling interests |
||||||||||||
Other equity instruments holders |
||||||||||||
Equity excluding other reserves |
Other reserves |
|||||||||||||||||||||||||||||||||||||||||||||||
Capital stock |
Capital surplus |
Retained earnings |
Treasury stock |
Remeasure- ments of defined benefit plans reserve |
Financial instruments at fair value through other comprehensive income reserve |
Own credit on financial liabilities designated at fair value through profit or loss reserve |
Exchange differences on translating foreign operations reserve |
Equity attributable to SMFG’s shareholders |
Non- controlling interests |
Equity attributable to other equity instruments holders |
Total equity |
|||||||||||||||||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2024 |
¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net profit |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||
Total comprehensive income |
— | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||
Issuance of shares under share-based payment transactions |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of other equity instruments |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Acquisition and disposal of subsidiaries and businesses-net |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Transaction with non-controlling interest shareholders |
— | ( |
) | — | — | — | — | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||||
Dividends to shareholders |
— | — | ( |
) | — | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||
Coupons on other equity instruments |
— | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Purchases of other equity instruments and sales of other equity instruments-net |
— | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Purchases of treasury stock |
— | — | — | ( |
) | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Sales of treasury stock |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Loss on sales of treasury stock |
— | — | ( |
) | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Cancellation of treasury stock |
— | — | ( |
) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based payment transactions |
— | ( |
) | — | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Transfer from other reserves to retained earnings |
— | — | — | ( |
) | ( |
) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Others |
— | ( |
) | — | — | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||
Balance at September 30, 2024 |
¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||||||||||||||||||
Balance at April 1, 2025 |
¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net profit |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | ( |
) | — | |||||||||||||||||||||||||||||||||||||||||
Total comprehensive income |
— | — | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under share-based payment transactions |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of other equity instruments |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Transaction with non-controlling interest shareholders |
— | ( |
) | — | — | — | — | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||||
Dividends to shareholders |
— | — | ( |
) | — | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||
Coupons on other equity instruments |
— | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Purchases of other equity instruments and sales of other equity instruments-net |
— | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Purchases of treasury stock |
— | — | — | ( |
) | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Sales of treasury stock |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Loss on sales of treasury stock |
— | — | ( |
) | — | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Cancellation of treasury stock |
— | — | ( |
) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Share-based payment transactions |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Transfer from other reserves to retained earnings |
— | — | — | ( |
) | ( |
) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Others |
— | ( |
) | ( |
) | — | — | — | — | — | ( |
) | — | |||||||||||||||||||||||||||||||||||
Balance at September 30, 2025 |
¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||||||||||||||||||
For the six months ended September 30, |
||||||||
2025 |
2024 |
|||||||
(In millions) |
||||||||
Operating Activities: |
||||||||
Profit before tax |
¥ | ¥ | ||||||
Adjustments for: |
||||||||
(Gains) losses on financial assets at fair value through profit or loss and investment securities |
( |
) | ||||||
Foreign exchange gains |
( |
) | ( |
) | ||||
Provision for loan losses |
||||||||
Depreciation and amortization |
||||||||
Share of post-tax profit of associates and joint ventures |
( |
) | ( |
) | ||||
Net changes in assets and liabilities: |
||||||||
Net increase of term deposits with original maturities over three months |
( |
) | ( |
) | ||||
Net (increase) decrease of call loans and bills bought |
( |
) | ||||||
Net increase of reverse repurchase agreements and cash collateral on securities borrowed |
( |
) | ( |
) | ||||
Net (increase) decrease of loans and advances |
( |
) | ||||||
Net change of trading assets and liabilities, derivative financial instruments, and financial liabilities designated at fair value through profit or loss |
( |
) | ( |
) | ||||
Net decrease of deposits |
( |
) | ( |
) | ||||
Net increase (decrease) of call money and bills sold |
( |
) | ||||||
Net increase of repurchase agreements and cash collateral on securities lent |
||||||||
Net increase (decrease) of other unsubordinated borrowings and debt securities in issue |
( |
) | ||||||
Income taxes paid—net |
( |
) | ( |
) | ||||
Other operating activities—net |
( |
) | ||||||
Net cash and cash equivalents used in operating activities |
( |
) |
( |
) | ||||
Investing Activities: |
||||||||
Purchases of financial assets at fair value through profit or loss and investment securities |
( |
) | ( |
) | ||||
Proceeds from sales of financial assets at fair value through profit or loss and investment securities |
||||||||
Proceeds from maturities of financial assets at fair value through profit or loss and investment securities |
||||||||
Acquisitions of subsidiaries and businesses, net of cash and cash equivalents acquired |
( |
) | — | |||||
Investments in associates and joint ventures |
( |
) | ( |
) | ||||
Proceeds from sales of investments in associates and joint ventures |
||||||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ||||
Purchases of intangible assets |
( |
) | ( |
) | ||||
Proceeds from sales of property, plant and equipment |
||||||||
Net cash and cash equivalents provided by (used in) investing activities |
( |
) | ||||||
Financing Activities: |
||||||||
Redemption of subordinated borrowings |
( |
) | ( |
) | ||||
Proceeds from issuance of subordinated bonds |
||||||||
Redemption of subordinated bonds |
( |
) | ( |
) | ||||
Payments for the principal portion of lease liabilities |
( |
) | ( |
) | ||||
Proceeds from issuance of other equity instruments |
||||||||
Dividends paid to shareholders of Sumitomo Mitsui Financial Group, Inc. |
( |
) | ( |
) | ||||
Dividends paid to non-controlling interest shareholders |
( |
) | ( |
) | ||||
Coupons paid to other equity instruments holders |
( |
) | ( |
) | ||||
Purchases of treasury stock and proceeds from sales of treasury stock—net |
( |
) | ( |
) | ||||
Purchases of other equity instruments and proceeds from sales of other equity instruments—net |
( |
) | ( |
) | ||||
Transactions with non-controlling interest shareholders—net |
— | |||||||
Net cash and cash equivalents used in financing activities |
( |
) | ( |
) | ||||
Effect of exchange rate changes on cash and cash equivalents |
( |
) | ||||||
Net decrease of cash and cash equivalents |
( |
) |
( |
) | ||||
Cash and cash equivalents at beginning of period |
||||||||
Cash and cash equivalents at end of period |
¥ | ¥ | ||||||
Net cash and cash equivalents used in operating activities includes: |
||||||||
Interest and dividends received |
¥ | ¥ | ||||||
Interest paid |
||||||||
1 |
GENERAL INFORMATION |
2 |
SUMMARY OF MATERIAL ACCOUNTING POLICIES |
3 |
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS |
4 |
SEGMENT ANALYSIS |
Wholesale Business Unit |
Retail Business Unit |
Global Business Unit |
Global Markets Business Unit |
Head office account and others |
Total |
|||||||||||||||||||
(In billions) |
||||||||||||||||||||||||
Consolidated gross profit (1) |
¥ | ¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ||||||||||||||||
General and administrative expenses |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||
Others (2) |
( |
) |
||||||||||||||||||||||
Consolidated net business profit |
¥ | ¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ||||||||||||||||
Wholesale Business Unit |
Retail Business Unit |
Global Business Unit |
Global Markets Business Unit |
Head office account and others |
Total |
|||||||||||||||||||
(In billions) |
||||||||||||||||||||||||
Consolidated gross profit (1) |
¥ | ¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ||||||||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||
Others (2) |
( |
) | ||||||||||||||||||||||
Consolidated net business profit |
¥ | ¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ||||||||||||||||
| (1) | Consolidated gross profit = (Interest income – Interest expenses) + Trust fees + (Fee and commission income – Fee and commission expenses) + (Trading income – Trading losses) + (Other operating income – Other operating expenses). |
| (2) | “Others” includes share of profit or loss of equity-method associates and joint ventures and cooperated profit and loss, that is, profit and loss double counted within the Group’s business segments in the managerial accounting. |
For the six months ended September 30, |
||||||||
2025 |
2024 |
|||||||
(In billions) |
||||||||
Consolidated net business profit |
¥ | ¥ | ||||||
Differences between management reporting and Japanese GAAP: |
||||||||
Total credit costs |
( |
) |
( |
) | ||||
Gains on equity instruments |
||||||||
Extraordinary gains or losses and others |
( |
) | ( |
) | ||||
Profit before tax under Japanese GAAP |
||||||||
Differences between Japanese GAAP and IFRS: |
||||||||
Scope of consolidation |
||||||||
Derivative financial instruments |
( |
) | ( |
) | ||||
Investment securities |
( |
) | ( |
) | ||||
Loans and advances |
( |
) | ( |
) | ||||
Investments in associates and joint ventures |
||||||||
Property, plant and equipment |
( |
) | ( |
) | ||||
Lease accounting |
( |
) | ||||||
Defined benefit plans |
( |
) | ( |
) | ||||
Foreign currency translation |
( |
) | ||||||
Classification of equity and liability |
||||||||
Others |
||||||||
Profit before tax under IFRS |
¥ | ¥ | ||||||
5 |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING |
At September 30, 2025 |
||||||||||||||||||||||||
Trading |
Risk Management (1) |
|||||||||||||||||||||||
Notional amounts |
Assets |
Liabilities |
Notional amounts |
Assets |
Liabilities |
|||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
Interest rate derivatives |
¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||
Futures |
||||||||||||||||||||||||
Listed Options |
— | — | — | |||||||||||||||||||||
Forwards |
— | — | — | |||||||||||||||||||||
Swaps |
||||||||||||||||||||||||
OTC Options |
— | |||||||||||||||||||||||
Currency derivatives |
||||||||||||||||||||||||
Futures |
— | — | — | |||||||||||||||||||||
Listed Options |
— | — | — | — | — | — | ||||||||||||||||||
Forwards |
||||||||||||||||||||||||
Swaps |
||||||||||||||||||||||||
OTC Options |
— | — | — | |||||||||||||||||||||
Equity derivatives |
— | — | — | |||||||||||||||||||||
Futures |
— | — | — | |||||||||||||||||||||
Listed Options |
— | — | — | |||||||||||||||||||||
Forwards |
— | — | — | |||||||||||||||||||||
Swaps |
— | — | — | |||||||||||||||||||||
OTC Options |
— | — | — | |||||||||||||||||||||
Commodity derivatives |
— | — | — | |||||||||||||||||||||
Futures |
— | — | — | |||||||||||||||||||||
Listed Options |
— | — | — | — | — | — | ||||||||||||||||||
Forwards |
— | — | — | — | — | — | ||||||||||||||||||
Swaps |
— | — | — | |||||||||||||||||||||
OTC Options |
— | — | — | |||||||||||||||||||||
Credit derivatives |
— | — | — | |||||||||||||||||||||
Total derivative financial instruments |
¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||
At March 31, 2025 |
||||||||||||||||||||||||
Trading |
Risk Management (1) |
|||||||||||||||||||||||
Notional amounts |
Assets |
Liabilities |
Notional amounts |
Assets |
Liabilities |
|||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
Interest rate derivatives |
¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||
Futures |
||||||||||||||||||||||||
Listed Options |
— | — | — | |||||||||||||||||||||
Forwards |
— | — | — | |||||||||||||||||||||
Swaps |
||||||||||||||||||||||||
OTC Options |
— | |||||||||||||||||||||||
Currency derivatives |
||||||||||||||||||||||||
Futures |
— | — | — | — | ||||||||||||||||||||
Listed Options |
— | — | — | — | — | — | ||||||||||||||||||
Forwards |
||||||||||||||||||||||||
Swaps |
||||||||||||||||||||||||
OTC Options |
— | — | — | |||||||||||||||||||||
Equity derivatives |
— | — | — | |||||||||||||||||||||
Futures |
— | — | — | |||||||||||||||||||||
Listed Options |
— | — | — | |||||||||||||||||||||
Forwards |
— | — | — | |||||||||||||||||||||
Swaps |
— | — | — | |||||||||||||||||||||
OTC Options |
— | — | — | |||||||||||||||||||||
Commodity derivatives |
— | — | — | |||||||||||||||||||||
Futures |
— | — | — | |||||||||||||||||||||
Listed Options |
— | — | — | — | — | — | ||||||||||||||||||
Forwards |
— | — | — | — | — | — | ||||||||||||||||||
Swaps |
— | — | — | |||||||||||||||||||||
OTC Options |
— | — | — | |||||||||||||||||||||
Credit derivatives |
— | — | — | |||||||||||||||||||||
Total derivative financial instruments |
¥ | ¥ | ¥ | ¥ | ¥ | ¥ | ||||||||||||||||||
| (1) | Derivative financial instruments categorized as “Risk Management” are used for economic hedging, such as managing the exposure to changes in fair value of the loan portfolio, and are identified as hedging instruments under Japanese GAAP. Under IFRS, the Group applies hedge accounting for certain fixed rate debt securities in issue, borrowings, and debt instruments at fair value through other comprehensive income and net investments in foreign operations. Derivative financial instruments designated as hedging instruments are also categorized as “Risk Management.” |
At September 30, 2025 |
At March 31, 2025 |
|||||||||||||||||||||||
Notional amounts |
Carrying amounts |
Notional amounts |
Carrying amounts |
|||||||||||||||||||||
Assets |
Liabilities |
Assets |
Liabilities |
|||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
| Interest rate risk |
||||||||||||||||||||||||
| Interest rate swaps |
¥ | |
¥ | |
¥ | |
¥ | |
¥ | |
¥ | |
||||||||||||
| Interest rate options |
— | |
— | |||||||||||||||||||||
At September 30, 2025 |
At March 31, 2025 |
|||||||||||||||||||||||
Nominal amounts |
Carrying amounts |
Nominal amounts |
Carrying amounts |
|||||||||||||||||||||
Assets |
Liabilities |
Assets |
Liabilities |
|||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||
| Foreign exchange forward contracts |
¥ | |
¥ | |
¥ | |
¥ | |
¥ | |
¥ | |
||||||||||||
| Foreign currency denominated financial liabilities |
— | — | ||||||||||||||||||||||
6 |
INVESTMENT SECURITIES |
At September 30, 2025 |
At March 31, 2025 |
|||||||
(In millions) |
||||||||
| Debt instruments at amortized cost: |
||||||||
| Domestic: |
||||||||
| Japanese government bonds |
¥ | ¥ | ||||||
| Japanese municipal bonds |
||||||||
| Japanese corporate bonds |
||||||||
| |
|
|
|
|||||
| Total domestic |
||||||||
| |
|
|
|
|||||
| Foreign: |
||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
||||||||
| Mortgage-backed securities |
||||||||
| Other debt instruments |
||||||||
| |
|
|
|
|||||
| Total foreign |
||||||||
| |
|
|
|
|||||
| Total debt instruments at amortized cost |
¥ | ¥ | ||||||
| |
|
|
|
|||||
| Debt instruments at fair value through other comprehensive income: |
||||||||
| Domestic: |
||||||||
| Japanese government bonds |
¥ | ¥ | ||||||
| Japanese municipal bonds |
||||||||
| Japanese corporate bonds |
||||||||
| Other debt instruments |
||||||||
| |
|
|
|
|||||
| Total domestic |
||||||||
| |
|
|
|
|||||
| Foreign: |
||||||||
| U.S. Treasury and other U.S. government agency bonds |
||||||||
| Bonds issued by governments and official institutions excluding U.S. Treasury and other U.S. government agency bonds |
||||||||
| Mortgage-backed securities |
||||||||
| Other debt instruments |
||||||||
| |
|
|
|
|||||
| Total foreign |
||||||||
| |
|
|
|
|||||
| Total debt instruments at fair value through other comprehensive income |
¥ | ¥ | ||||||
| |
|
|
|
|||||
| Equity instruments at fair value through other comprehensive income: |
||||||||
| Domestic equity instruments |
¥ | ¥ | ||||||
| Foreign equity instruments |
||||||||
| |
|
|
|
|||||
| Total equity instruments at fair value through other comprehensive income |
¥ | ¥ | ||||||
| |
|
|
|
|||||
| Total investment securities |
¥ | ¥ | |
|||||
| |
|
|
|
|||||
7 |
LOANS AND ADVANCES |
At September 30, 2025 |
||||||||||||||||
12-month ECL |
Lifetime ECL not credit- impaired |
Lifetime ECL credit-impaired |
Total |
|||||||||||||
(In millions) |
||||||||||||||||
| Loans and advances at amortized cost: |
||||||||||||||||
| Gross loans and advances |
¥ | |
¥ | |
¥ | |
¥ | |
||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Adjust: Unearned income, unamortized premiums—net and deferred loan fees—net |
( |
) | ||||||||||||||
| Less: Allowance for loan losses |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Carrying amount |
¥ | |||||||||||||||
| |
|
|||||||||||||||
At March 31, 2025 |
||||||||||||||||
12-month ECL |
Lifetime ECL not credit- impaired |
Lifetime ECL credit-impaired |
Total |
|||||||||||||
(In millions) |
||||||||||||||||
| Loans and advances at amortized cost: |
||||||||||||||||
| Gross loans and advances |
¥ | |
¥ | |
¥ | |
¥ | |
||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Adjust: Unearned income, unamortized premiums—net and deferred loan fees—net |
( |
) | ||||||||||||||
| Less: Allowance for loan losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Carrying amount |
¥ | |||||||||||||||
| |
|
|||||||||||||||
At September 30, 2025 |
||||||||||||||||
12-month ECL |
Lifetime ECL not credit- impaired |
Lifetime ECL credit-impaired |
Total |
|||||||||||||
(In millions) |
||||||||||||||||
| Allowance for loan losses: |
||||||||||||||||
| Balance at April 1, 2025 |
¥ | ¥ | ¥ | ¥ | ||||||||||||
| Net transfers between stages |
( |
) | ( |
) | — | |||||||||||
| Provision (credit) for loan losses |
( |
) | ||||||||||||||
| Charge-offs (1) |
— | — | ||||||||||||||
| Recoveries |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net charge-offs |
— | — | ||||||||||||||
| Others (2) |
( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at September 30, 2025 |
¥ | |
¥ | |
¥ | |
¥ | |
||||||||
| |
|
|
|
|
|
|
|
|||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2024 |
||||||||||||||||
12-month ECL |
Lifetime ECL not credit- impaired |
Lifetime ECL credit-impaired |
Total |
|||||||||||||
(In millions) |
||||||||||||||||
| Allowance for loan losses: |
||||||||||||||||
| Balance at April 1, 2024 |
¥ | ¥ | ¥ | ¥ | ||||||||||||
| Net transfers between stages |
( |
) | ( |
) | — | |||||||||||
| Provision (credit) for loan losses |
( |
) | ||||||||||||||
| Charge-offs (1) |
— | — | ||||||||||||||
| Recoveries |
— | — | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Net charge-offs |
— | — | ||||||||||||||
| Others (2) |
( |
) | ( |
) | ( |
) | ||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at September 30, 2024 |
¥ | |
¥ | |
¥ | |
¥ | |
||||||||
| |
|
|
|
|
|
|
|
|||||||||
| (1) | Charge-offs consist of the reduction of the allowance through the sales of loans and write-offs. |
| (2) | Others mainly include foreign exchange translations for the six months ended September 30, 2025 and 2024. |
For the fiscal year ending March 31, |
||||||||
As at September 30, 2025: |
2026 |
2027 |
||||||
Upside |
(%) |
|||||||
| Japanese GDP (Nominal) |
||||||||
| U.S. GDP (Real) |
||||||||
| EMU GDP (Real) |
||||||||
| Asia-Pacific GDP (Real) |
||||||||
| Japanese short-term interest rate |
||||||||
| |
|
|
|
|||||
| Base |
||||||||
| Japanese GDP (Nominal) |
||||||||
| U.S. GDP (Real) |
||||||||
| EMU GDP (Real) |
||||||||
| Asia-Pacific GDP (Real) |
||||||||
| Japanese short-term interest rate |
||||||||
| |
|
|
|
|||||
| Downside |
||||||||
| Japanese GDP (Nominal) |
||||||||
| U.S. GDP (Real) |
||||||||
| EMU GDP (Real) |
( |
) | ||||||
| Asia-Pacific GDP (Real) |
||||||||
| Japanese short-term interest rate |
||||||||
| |
|
|
|
|||||
| Severe downside |
||||||||
| Japanese GDP (Nominal) |
( |
) | ||||||
| U.S. GDP (Real) |
( |
) | ( |
) | ||||
| EMU GDP (Real) |
( |
) |
( |
) | ||||
| Asia-Pacific GDP (Real) |
||||||||
| Japanese short-term interest rate |
||||||||
| |
|
|
|
|||||
Upside |
Base |
Downside |
Severe downside |
|||||||||||||
(%) |
||||||||||||||||
| As at September 30, 2025: |
||||||||||||||||
| Scenario probability weighting |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
8 |
BORROWINGS |
At September 30, 2025 |
At March 31, 2025 |
|||||||
(In millions) |
||||||||
| Unsubordinated borrowings |
¥ | ¥ | ||||||
| Subordinated borrowings |
||||||||
| Liabilities associated with securitization transactions |
||||||||
| Lease liabilities |
||||||||
| |
|
|
|
|||||
| Total borrowings |
¥ | ¥ | ||||||
| |
|
|
|
|||||
9 |
DEBT SECURITIES IN ISSUE |
At September 30, 2025 |
At March 31, 2025 |
|||||||
(In millions) |
||||||||
| Commercial paper |
¥ | |
¥ | |
||||
| Unsubordinated bonds |
||||||||
| Subordinated bonds |
||||||||
| |
|
|
|
|||||
| Total debt securities in issue |
¥ | ¥ | ||||||
| |
|
|
|
|||||
10 |
PROVISIONS |
Provision for interest repayment |
Other provisions |
Total |
||||||||||
(In millions) |
||||||||||||
| Balance at April 1, 2025 |
¥ | |
¥ | |
¥ | |
||||||
| Additional provisions |
||||||||||||
| Amounts used |
( |
) | ( |
) | ( |
) | ||||||
| Unused amounts reversed |
— | ( |
) | ( |
) | |||||||
| Amortization of discount and effect of change in discount rate |
( |
) |
( |
) | ||||||||
| Others |
— | ( |
) |
( |
) | |||||||
| |
|
|
|
|
|
|||||||
| Balance at September 30, 2025 |
¥ | ¥ | ¥ | |||||||||
| |
|
|
|
|
|
|||||||
11 |
SHAREHOLDERS’ EQUITY |
At September 30, 2025 |
At March 31, 2025 |
|||||||
| Shares outstanding |
||||||||
| Shares in treasury |
||||||||
At September 30, 2025 |
At March 31, 2025 |
|||||||||||||||
Authorized |
Issued |
Authorized |
Issued |
|||||||||||||
| Type 5 preferred stock |
||||||||||||||||
| Type 7 preferred stock |
||||||||||||||||
| Type 8 preferred stock |
||||||||||||||||
| Type 9 preferred stock |
||||||||||||||||
12 |
EQUITY ATTRIBUTABLE TO OTHER EQUITY INSTRUMENTS HOLDERS |
At September 30, 2025 |
At March 31, 2025 |
|||||||
(In millions) |
||||||||
| Perpetual subordinated bonds |
¥ | |
¥ | |
||||
| Perpetual subordinated borrowings |
||||||||
| |
|
|
|
|||||
| Total equity attributable to other equity instruments holders |
¥ | ¥ | ||||||
| |
|
|
|
|||||
13 |
FEE AND COMMISSION INCOME |
For the six months ended September 30, |
||||||||
2025 |
2024 |
|||||||
(In millions) |
||||||||
| Loans |
¥ | ¥ | ||||||
| Credit card business |
||||||||
| Guarantees |
||||||||
| Securities-related business |
||||||||
| Deposits |
||||||||
| Remittances and transfers |
||||||||
| Safe deposits |
||||||||
| Trust fees |
||||||||
| Investment trusts |
||||||||
| Agency |
||||||||
| Others |
||||||||
| |
|
|
|
|||||
| Total fee and commission income |
¥ | ¥ | ||||||
| |
|
|
|
|||||
14 |
IMPAIRMENT CHARGES ON FINANCIAL ASSETS |
For the six months ended September 30, |
||||||||
2025 |
2024 |
|||||||
(In millions) |
||||||||
| Loans and advances |
¥ | ¥ | ||||||
| Loan commitments |
( |
) | ( |
) | ||||
| Financial guarantees |
( |
) |
( |
) | ||||
| Investment securities |
— | |||||||
| |
|
|
|
|||||
| Total impairment charges on financial assets |
¥ | ¥ | ||||||
| |
|
|
|
|||||
15 |
EARNINGS PER SHARE |
For the six months ended September 30, |
||||||||
2025 |
2024 |
|||||||
| (In millions, except number of shares and per share data) |
||||||||
| Basic: |
||||||||
| Profit attributable to shareholders of the Company |
¥ | ¥ | ||||||
| Weighted average number of common stock in issue (in thousands of shares) |
||||||||
| |
|
|
|
|||||
| Basic earnings per share |
¥ | ¥ | ||||||
| Diluted: |
||||||||
| Profit attributable to the common shareholders of the Company |
¥ | ¥ | ||||||
| Impact of dilutive potential ordinary shares issued by subsidiaries and associates |
— | ( |
) | |||||
| |
|
|
|
|||||
| Net profit used to determine diluted earnings per share |
¥ | ¥ | ||||||
| |
|
|
|
|||||
| Weighted average number of common stock in issue (in thousands of shares) |
||||||||
| Adjustments for stock options (in thousands of shares) |
||||||||
| |
|
|
|
|||||
| Weighted average number of common stock for diluted earnings per share (in thousands of shares) |
||||||||
| |
|
|
|
|||||
| Diluted earnings per share |
¥ | ¥ | ||||||
16 |
DIVIDENDS PER SHARE |
Per share |
Aggregate amount |
|||||||
(In yen) |
(In millions) |
|||||||
| Dividends on common stock for the six months ended September 30, |
||||||||
| 2025 |
¥ | ¥ | ||||||
| 2024 |
¥ | ¥ | ||||||
17 |
CONTINGENCY AND CAPITAL COMMITMENTS |
At September 30, 2025 |
At March 31, 2025 |
|||||||
(In millions) |
||||||||
Loan commitments |
¥ | ¥ | ||||||
Financial guarantees and other credit-related contingent liabilities |
||||||||
Total |
¥ |
¥ | |
|||||
18 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES |
| • | quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date (Level 1); |
| • | inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (Level 2); and |
| • | significant unobservable inputs for the asset or liability (Level 3). |
At September 30, 2025 |
||||||||||||||||
Level 1 (1) |
Level 2 (1) |
Level 3 |
Total |
|||||||||||||
(In millions) |
||||||||||||||||
Financial assets: |
||||||||||||||||
Trading assets: |
||||||||||||||||
Debt instruments |
¥ | ¥ | ¥ | — | ¥ | |||||||||||
Equity instruments |
— | |||||||||||||||
Total trading assets |
— | |||||||||||||||
Derivative financial instruments: |
||||||||||||||||
Interest rate derivatives |
||||||||||||||||
Currency derivatives |
||||||||||||||||
Equity derivatives |
||||||||||||||||
Commodity derivatives |
— | |||||||||||||||
Credit derivatives |
— | |||||||||||||||
Total derivative financial instruments |
||||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||
Debt instruments |
||||||||||||||||
Equity instruments |
||||||||||||||||
Total financial assets at fair value through profit or loss |
||||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||
Japanese government bonds |
— | — | ||||||||||||||
U.S. Treasury and other U.S. government agency bonds |
— | |||||||||||||||
Other debt instruments |
— | |||||||||||||||
Total debt instruments |
— | |||||||||||||||
Equity instruments |
||||||||||||||||
Total investment securities at fair value through other comprehensive income |
||||||||||||||||
Total |
¥ | ¥ | ¥ | ¥ | ||||||||||||
Financial liabilities: |
||||||||||||||||
Trading liabilities: |
||||||||||||||||
Debt instruments |
¥ | ¥ | ¥ | — | ¥ | |||||||||||
Equity instruments |
— | |||||||||||||||
Total trading liabilities |
— | |||||||||||||||
Derivative financial instruments: |
||||||||||||||||
Interest rate derivatives |
||||||||||||||||
Currency derivatives |
||||||||||||||||
Equity derivatives |
||||||||||||||||
Commodity derivatives |
— | |||||||||||||||
Credit derivatives |
— | |||||||||||||||
Total derivative financial instruments |
||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
— | |||||||||||||||
Others (2) |
— | ( |
) |
( |
) |
( |
) | |||||||||
Total |
¥ | ¥ | ¥ | ¥ | ||||||||||||
At March 31, 2025 |
||||||||||||||||
Level 1 (1) |
Level 2 (1) |
Level 3 |
Total |
|||||||||||||
(In millions) |
||||||||||||||||
Financial assets: |
||||||||||||||||
Trading assets: |
||||||||||||||||
Debt instruments |
¥ | ¥ | ¥ | ¥ | ||||||||||||
Equity instruments |
— | |||||||||||||||
Total trading assets |
||||||||||||||||
Derivative financial instruments: |
||||||||||||||||
Interest rate derivatives |
||||||||||||||||
Currency derivatives |
— | |||||||||||||||
Equity derivatives |
||||||||||||||||
Commodity derivatives |
— | |||||||||||||||
Credit derivatives |
— | |||||||||||||||
Total derivative financial instruments |
||||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||
Debt instruments |
||||||||||||||||
Equity instruments |
||||||||||||||||
Total financial assets at fair value through profit or loss |
||||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||
Japanese government bonds |
— | — | ||||||||||||||
U.S. Treasury and other U.S. government agency bonds |
— | |||||||||||||||
Other debt instruments |
— | |||||||||||||||
Total debt instruments |
— | |||||||||||||||
Equity instruments |
||||||||||||||||
Total investment securities at fair value through other comprehensive income |
||||||||||||||||
Total |
¥ | ¥ | ¥ | ¥ | ||||||||||||
Financial liabilities: |
||||||||||||||||
Trading liabilities: |
||||||||||||||||
Debt instruments |
¥ | ¥ | ¥ | — | ¥ | |||||||||||
Equity instruments |
— | |||||||||||||||
Total trading liabilities |
— | |||||||||||||||
Derivative financial instruments: |
||||||||||||||||
Interest rate derivatives |
||||||||||||||||
Currency derivatives |
||||||||||||||||
Equity derivatives |
||||||||||||||||
Commodity derivatives |
— | |||||||||||||||
Credit derivatives |
— | |||||||||||||||
Total derivative financial instruments |
||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
— | |||||||||||||||
Others (2) |
— | ( |
) | ( |
) | ( |
) | |||||||||
Total |
¥ | ¥ | ¥ | ¥ | ||||||||||||
| (1) | Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the period. There were no significant transfers between Level 1 and Level 2 for the six months ended September 30, 2025 and for the fiscal year ended March 31, 2025. |
| (2) | Derivatives embedded in financial liabilities, except for financial liabilities designated at fair value through profit or loss, are separately accounted for, but presented together with the host contract in the consolidated statements of financial position. In these tables, the separated embedded derivatives whose host contracts are carried at amortized cost are presented within others. Although the separated embedded derivatives may have a positive or a negative fair value, they have been presented in these tables as liabilities to be consistent with the host contract. The separated embedded derivatives are measured at fair value using the valuation techniques described in “Derivative financial instruments (including embedded derivatives)” in Note 45 “Fair Value of Financial Assets and Liabilities” of the Group’s consolidated financial statements for the fiscal year ended March 31, 2025. |
Total gains (losses) |
Changes in unrealized gains (losses) included in profit or loss related to assets and liabilities held at September 30, 2025 |
|||||||||||||||||||||||||||||||||||||||||||
At April 1, 2025 |
Included in profit or loss |
Included in other comprehensive income |
Purchases |
Sales |
Issuances |
Settlements (1) |
Transfers into Level 3 (2) |
Transfers out of Level 3 (2) |
At September 30, 2025 |
|||||||||||||||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||||||||||||||||||
Trading assets: |
||||||||||||||||||||||||||||||||||||||||||||
Debt instruments |
¥ | ¥ | ¥ | — | ¥ | — | ¥ | ( |
) | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | ¥ | — | |||||||||||||||||||||||
Total trading assets |
— | — | ( |
) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Derivative financial instruments—net: |
||||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives—net |
( |
) | ( |
) | — | ( |
) | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Currency derivatives—net |
( |
) | — | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Equity derivatives—net |
— | ( |
) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Credit derivatives—net |
( |
) | — | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Total derivative financial instruments—net |
( |
) | ( |
) |
— | ( |
) | — | — | — | — | ( |
) |
|||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||||||||||||||||||||||||||||||
Debt instruments |
( |
) | ( |
) | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||
Equity instruments |
— | ( |
) |
— | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||||
Total financial assets at fair value through profit or loss |
( |
) | ( |
) | — | ( |
) |
— | ( |
) |
||||||||||||||||||||||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||
Equity instruments |
— | ( |
) | — | ( |
) | — | — | ||||||||||||||||||||||||||||||||||||
Total investment securities at fair value through other comprehensive income |
— | ( |
) | — | ( |
) | — | — | ||||||||||||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
( |
) | ( |
) |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||||||
Others (3) —liabilities |
— | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||||||
Total |
¥ | ¥ | ¥ | ¥ | ¥ | ( |
) | ¥ | ( |
) |
¥ | ( |
) |
¥ | ¥ | ( |
) | ¥ | ¥ | |||||||||||||||||||||||||
Total gains (losses) |
Changes in unrealized gains (losses) included in profit or loss related to assets and liabilities held at September 30, 2024 |
|||||||||||||||||||||||||||||||||||||||||||
At April 1, 2024 |
Included in profit or loss |
Included in other comprehensive income |
Purchases |
Sales |
Issuances |
Settlements (1) |
Transfers into Level 3 (2) |
Transfers out of Level 3 (2) |
At September 30, 2024 |
|||||||||||||||||||||||||||||||||||
(In millions) |
||||||||||||||||||||||||||||||||||||||||||||
Trading assets: |
||||||||||||||||||||||||||||||||||||||||||||
Debt instruments |
¥ | — | ¥ | ( |
) | ¥ | — | ¥ | ¥ | — | ¥ | — | ¥ | — | ¥ | ¥ | — | ¥ | ¥ | ( |
) | |||||||||||||||||||||||
Total trading assets |
— | ( |
) | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||||
Derivative financial instruments—net: |
||||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives—net |
( |
) | ( |
) | — | ( |
) | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Currency derivatives—net |
( |
) | ( |
) | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Equity derivatives—net |
— | ( |
) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Credit derivatives—net |
( |
) | — | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||||||||||
Total derivative financial instruments—net |
— | ( |
) | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||||||||||||||||||||||||||||||
Debt instruments |
( |
) | ( |
) | ( |
) | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Equity instruments |
( |
) | — | ( |
) | — | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
Total financial assets at fair value through profit or loss |
( |
) | ( |
) | ( |
) | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||
Equity instruments |
— | ( |
) | — | ( |
) | — | — | — | |||||||||||||||||||||||||||||||||||
Total investment securities at fair value through other comprehensive income |
— | ( |
) | — | ( |
) | — | — | — | |||||||||||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
( |
) | ( |
) | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||||||||
Others (3) —liabilities |
— | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||||||||||||
Total |
¥ | ¥ | ( |
) | ¥ | ¥ | ¥ | ( |
) | ¥ | ( |
) | ¥ | ( |
) | ¥ | ¥ | ( |
) | ¥ | ¥ | ( |
) | |||||||||||||||||||||
| (1) | Settlements for equity instruments include redemption of preferred stocks and receipt of cash distributions which represent a return of investment. |
| (2) | Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the period. For the six months ended September 30, 2025 and 2024, transfers into Level 3 amounted to ¥ million and ¥ million, respectively. These transfers out of Level 3 were primarily due to a decrease in significance of unobservable inputs of certain financial assets at fair value through profit or loss. |
| (3) | Derivatives embedded in financial liabilities, except for financial liabilities designated at fair value through profit or loss, are separately accounted for, but presented together with the host contract in the consolidated statements of financial position. In these tables, the separated embedded derivatives whose host contracts are carried at amortized cost are presented within others. Although the separated embedded derivatives may have a positive or a negative fair value, they have been presented in these tables as liabilities to be consistent with the host contract. |
Total gains (losses) included in profit or loss for the six months ended September 30, |
Changes in unrealized gains (losses) included in profit or loss related to assets and liabilities held at September 30, |
|||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||
(In millions) |
||||||||||||||||
Net interest income |
¥ | ¥ | ¥ | ¥ | ||||||||||||
Net trading income |
||||||||||||||||
Net income (loss) from financial assets and liabilities at fair value through profit or loss |
( |
) | ( |
) | ||||||||||||
Total |
¥ | ¥ | ( |
) | ¥ | ¥ | ( |
) | ||||||||
For the six months ended September 30, |
||||||||
2025 |
2024 |
|||||||
(In millions) |
||||||||
Balance at beginning of period |
¥ | ¥ | ||||||
Increase due to new trades |
||||||||
Reduction due to redemption, sales or passage of time |
( |
) |
( |
) | ||||
Balance at end of period |
¥ | ¥ | ||||||
At September 30, 2025 |
||||||||||||||||
Assets |
Liabilities |
Valuation technique(s) (1) |
Significant unobservable inputs (1) |
Range of inputs (1) |
||||||||||||
(In millions) |
||||||||||||||||
Derivative financial instruments: |
||||||||||||||||
Interest rate derivatives |
¥ | ¥ | Option model |
Interest rate to interest rate correlation |
||||||||||||
Quanto correlation |
||||||||||||||||
Foreign exchange volatility |
||||||||||||||||
Interest rate volatility |
||||||||||||||||
Currency derivatives |
Option model |
Interest rate to interest rate correlation |
||||||||||||||
Quanto correlation |
||||||||||||||||
Foreign exchange volatility |
%- |
|||||||||||||||
Equity derivatives |
Option model |
Equity volatility |
||||||||||||||
Credit derivatives |
Credit Default model |
Quanto correlation |
||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||
Debt instruments |
— | Option model |
Foreign exchange volatility |
|||||||||||||
DCF model |
Probability of default rate |
|||||||||||||||
Loss given default rate |
||||||||||||||||
Discount margin |
||||||||||||||||
Net asset value (2) |
— |
— | ||||||||||||||
Equity instruments |
— | Market multiples |
Price/Book value multiple |
|||||||||||||
Liquidity discount |
||||||||||||||||
DCF model |
Probability of default rate |
|||||||||||||||
Loss given default rate |
||||||||||||||||
See note (3) below |
— |
— | ||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||
Equity instruments |
— | Market multiples |
Price/Book value multiple |
|||||||||||||
Liquidity discount |
||||||||||||||||
See note (3) below |
— |
— | ||||||||||||||
Financial liabilities designated at fair value through profit or loss |
— | Option model |
Equity to equity correlation |
|||||||||||||
Interest rate to interest rate correlation |
||||||||||||||||
Quanto correlation |
( %) - |
|||||||||||||||
Equity volatility |
||||||||||||||||
Credit Default model |
Quanto correlation |
|||||||||||||||
Others (4) |
— | ( |
) |
Option model |
Interest rate to interest rate correlation |
|||||||||||
Quanto correlation |
||||||||||||||||
Foreign exchange volatility |
||||||||||||||||
| Credit Default model | Quanto correlation |
|||||||||||||||
At March 31, 2025 |
||||||||||||||||
Assets |
Liabilities |
Valuation technique(s) (1) |
Significant unobservable inputs (1) |
Range of inputs (1) |
||||||||||||
(In millions) |
||||||||||||||||
Trading assets: |
||||||||||||||||
Debt instruments |
¥ | ¥ | — | DCF model | Discount margin | |||||||||||
Derivative financial instruments: |
||||||||||||||||
Interest rate derivatives |
Option model | Interest rate to interest rate correlation |
||||||||||||||
| Quanto correlation | ||||||||||||||||
| Foreign exchange volatility | ||||||||||||||||
Currency derivatives |
Option model | Interest rate to interest rate correlation |
||||||||||||||
| Quanto correlation | ||||||||||||||||
| Foreign exchange volatility | ||||||||||||||||
Equity derivatives |
Option model | Equity to equity correlation | ||||||||||||||
| Equity volatility | ||||||||||||||||
Credit derivatives |
Credit Default model | Quanto correlation | ||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||
Debt instruments |
— | Option model | Foreign exchange volatility | |||||||||||||
| DCF model | Probability of default rate | |||||||||||||||
| Loss given default rate | |
|||||||||||||||
| Discount margin | ||||||||||||||||
| Net asset value (2) |
— | — | ||||||||||||||
Equity instruments |
— | Market multiples | Price/Book value multiple | |||||||||||||
| Liquidity discount | ||||||||||||||||
| DCF model | Probability of default rate | |||||||||||||||
| Loss given default rate | ||||||||||||||||
| See note (3) below | — | — | ||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||
Equity instruments |
— | Market multiples | Price/Book value multiple | |||||||||||||
| Liquidity discount | ||||||||||||||||
| See note (3) below | — | — | ||||||||||||||
Financial liabilities designated at fair value through profit or loss |
— | Option model | Equity to equity correlation |
|||||||||||||
| Interest rate to interest rate correlation | ||||||||||||||||
| Quanto correlation | ||||||||||||||||
| Equity volatility | ||||||||||||||||
| Credit Default model | Quanto correlation | |||||||||||||||
Others (4) |
— | ( |
) | Option model | Interest rate to interest rate correlation |
|||||||||||
| Quanto correlation | ||||||||||||||||
| Foreign exchange volatility | ||||||||||||||||
| Credit Default model | Quanto correlation | |||||||||||||||
| (1) | Valuation techniques and unobservable inputs for insignificant Level 3 financial assets and liabilities are excluded. |
| (2) | The Group has determined that the net asset value represents fair values of certain investment funds. |
| (3) | Fair values of certain equity instruments such as unlisted stocks are estimated on the basis of an analysis of the investee’s financial position and results, risk profile, prospects and other factors. A range of key inputs is not provided in these tables as it is not practical to do so given the nature of such valuation techniques. |
| (4) | Derivatives embedded in financial liabilities, except for financial liabilities designated at fair value through profit or loss, are separately accounted for, but presented together with the host contract in the consolidated statements of financial position. In these tables, the separated embedded derivatives whose host contracts are carried at amortized cost are presented within others. Although the separated embedded derivatives may have a positive or a negative fair value, they have been presented in these tables as liabilities to be consistent with the host contract. |
At September 30, 2025 |
||||||||||||||||||||
Total fair value measured using valuation techniques |
Effect recorded in profit or loss |
Effect recorded directly in equity |
||||||||||||||||||
Favorable changes |
Unfavorable changes |
Favorable changes |
Unfavorable changes |
|||||||||||||||||
(In millions) |
||||||||||||||||||||
Financial instruments—net: |
||||||||||||||||||||
Derivative financial instruments—net: |
||||||||||||||||||||
Interest rate derivatives—net |
¥ | ( |
) | ¥ | ¥ | ¥ | — | ¥ | — | |||||||||||
Currency derivatives—net |
( |
) |
— | — | ||||||||||||||||
Equity derivatives—net |
— | — | ||||||||||||||||||
Credit derivatives—net |
— | — | ||||||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||||||
Debt instruments |
— | — | ||||||||||||||||||
Equity instruments |
— | — | ||||||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||||||
Equity instruments |
— | — | ||||||||||||||||||
Financial liabilities designated at fair value through profit or loss (1) |
( |
) | — | — | ||||||||||||||||
Others (1)(2) —liabilities: |
— | — | ||||||||||||||||||
At March 31, 2025 |
||||||||||||||||||||
Total fair value measured using valuation techniques |
Effect recorded in profit or loss |
Effect recorded directly in equity |
||||||||||||||||||
Favorable changes |
Unfavorable changes |
Favorable changes |
Unfavorable changes |
|||||||||||||||||
(In millions) |
||||||||||||||||||||
Financial instruments—net: |
||||||||||||||||||||
Trading assets: |
||||||||||||||||||||
Debt instruments |
¥ | ¥ | ¥ | ¥ | — | ¥ | — | |||||||||||||
Derivative financial instruments—net: |
||||||||||||||||||||
Interest rate derivatives—net |
( |
) | — | — | ||||||||||||||||
Currency derivatives—net |
( |
) | — | — | ||||||||||||||||
Equity derivatives—net |
— | — | ||||||||||||||||||
Credit derivatives—net |
— | — | ||||||||||||||||||
Financial assets at fair value through profit or loss: |
||||||||||||||||||||
Debt instruments |
— | — | ||||||||||||||||||
Equity instruments |
— | — | ||||||||||||||||||
Investment securities at fair value through other comprehensive income: |
||||||||||||||||||||
Equity instruments |
— | — | ||||||||||||||||||
Financial liabilities designated at fair value through profit or loss (1) |
( |
) | — | — | ||||||||||||||||
Others (1)(2) —liabilities: |
— | — | ||||||||||||||||||
| (1) | As part of risk management, the Group enters into transactions to offset the profit or loss of certain financial instruments, including embedded derivatives. Sensitivity of embedded derivatives related to these transactions is presented as derivative financial instruments or financial assets at fair value through profit or loss, according to the presentation of the financial instruments arising from these transactions. |
| (2) | Derivatives embedded in financial liabilities, except for financial liabilities designated at fair value through profit or loss, are separately accounted for, but presented together with the host contract in the consolidated statements of financial position. In these tables, the separated embedded derivatives whose host contracts are carried at amortized cost are presented within others. Although the separated embedded derivatives may have a positive or a negative fair value, they have been presented in these tables as liabilities to be consistent with the host contract. |
At September 30, 2025 |
At March 31, 2025 |
|||||||||||||||||
Notes |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
||||||||||||||
(In millions) |
||||||||||||||||||
Financial assets: |
||||||||||||||||||
Investment securities: |
||||||||||||||||||
Debt instruments at amortized cost |
a | ¥ | ¥ | ¥ | ¥ | |||||||||||||
Loans and advances |
b | |||||||||||||||||
Other financial assets |
b | |||||||||||||||||
Financial liabilities: |
||||||||||||||||||
Deposits: |
||||||||||||||||||
Non-interest-bearing deposits, demand deposits and deposits at notice |
c | ¥ | ¥ | ¥ | ¥ | |||||||||||||
Other deposits |
c | |||||||||||||||||
Borrowings |
c | |||||||||||||||||
Debt securities in issue |
c | |||||||||||||||||
Other financial liabilities |
c | |||||||||||||||||
a. |
The fair values of debt instruments at amortized cost are determined using quoted prices in active markets or observable inputs other than quoted prices in active markets. | |||
b. |
(i) |
The carrying amounts of loans with no specified repayment dates represent a reasonable estimate of fair value, considering the nature of these financial instruments. | ||
(ii) |
Short-term financial assets: The carrying amounts represent a reasonable estimate of fair value. | |||
(iii) |
Long-term financial assets: Except for impaired loans and advances, the fair values are mostly determined using the discounted cash flow method taking into account certain factors including counterparties’ credit ratings, pledged collateral, and market interest rates. The fair values of impaired loans and advances are generally determined by discounting the estimated future cash flows over the time period they are expected to be recovered and may be based on the appraisal value of underlying collateral as appropriate. | |||
c. |
Note that some of the financial liabilities in this category include embedded derivatives, which are separately accounted for, but presented together with the host contract. | |||
(i) |
The carrying amounts of demand deposits and deposits without maturity represent a reasonable estimate of fair value, considering the nature of these financial instruments. | |||
(ii) |
Short-term financial liabilities: The carrying amounts represent a reasonable estimate of fair value. | |||
(iii) |
Long-term financial liabilities: The fair values are, in principle, based on the present values of future cash flows calculated using the funding costs for the remaining maturities. The fair values of debt securities in issue are based on a price quoted by a third party, such as a pricing service or broker, or the present values of future cash flows calculated using the rate derived from yields of bonds issued by SMFG, SMBC and other subsidiaries and publicly offered subordinated bonds published by securities firms. | |||
(iv) |
The carrying amounts and fair values of lease liabilities are not included in this table. | |||
