News Release


[Sumitomo Mitsui Financial Group, Inc.]Notice Regarding the Filing of an Annual Report on Form 20-F with the U.S. Securities and Exchange Commission(1/1)

 

Sumitomo Mitsui Financial Group, Inc.

 

 

Notice Regarding the Filing of an Annual Report on Form 20-F

with the U.S. Securities and Exchange Commission

 

 

TOKYO, July 24, 2012 --- Sumitomo Mitsui Financial Group, Inc. (gSMFGh, President: Koichi Miyata) hereby announces that, on July 23, 2012 (Eastern Daylight Time), SMFG filed an annual report on Form 20-F with the U.S. Securities and Exchange Commission (gSECh).

 

A copy of the annual report on Form 20-F can be viewed and obtained at SMFGfs website at http://www.smfg.co.jp/english/investor/financial/annual.html or on EDGAR, the SECfs Electronic Data Gathering, Analysis, and Retrieval system. Holders of SMFGfs American Depositary Receipts may request a hard copy of SMFGfs complete audited financial statements free of charge through SMFGfs website.

 

 

iAttachmentj

 

iReference 1j Consolidated Financial Statements (IFRS)

iReference 2j Reconciliation with Japanese GAAP

 

This document contains a summary of SMFGfs consolidated financial information under International Financial Reporting Standards (gIFRSh) as issued by the International Accounting Standards Board that was disclosed in its annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on July 23, 2012. This document does not contain all of the information in the Form 20-F that may be important to you. You should read the entire Form 20-F carefully to obtain a comprehensive understanding of SMFGfs business and financial data under IFRS and related issues.

This document contains gforward-looking statementsh (as defined in the U.S. Private Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of SMFG and its management with respect to SMFGfs future financial condition and results of operations. In many cases but not all, these statements contain words such as ganticipateh, gestimateh, gexpecth, gintendh, gmayh, gplanh, gprobabilityh, griskh, gprojecth, gshouldh, gseekh, gtargeth 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 SMFGfs securities portfolio; SMFGfs ability to successfully implement its business strategy through its subsidiaries, affiliates and alliance partners; exposure to new risks as SMFG expands the scope of its business; and incurrence of significant credit-related costs. 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. SMFG undertakes no obligation to update or revise any forward-looking statements. Please refer to SMFGfs most recent disclosure documents such as its annual report or registration statement on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as earnings press releases, for a more detailed description of the risks and uncertainties that may affect SMFGfs financial condition and results of operations, and investorsf decisions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (Reference 1) Consolidated Financial Statements (IFRS)

 

Consolidated Statement of Financial Position

(In millions)

 

At March 31,@2011

At March 31,@2012

Assets:

 

 

Cash and deposits with banks

\      9,436,358

\     8,050,562

Call loans and bills bought

862,667

1,297,082

Reverse repurchase agreements and cash collateral on securities borrowed

5,051,053

4,937,025

Trading assets

3,315,153

4,461,258

Derivative financial instruments

4,975,973

5,901,526

Financial assets at fair value through profit or loss

2,132,348

2,150,409

Investment securities

34,662,106

37,324,100

Loans and advances

71,020,329

72,536,813

Investments in associates and joint ventures

201,135

206,660

Property, plant and equipment

1,039,483

1,045,006

Intangible assets

769,677

899,167

Other assets

1,924,070

2,367,300

Current tax assets

53,708

65,298

Deferred tax assets

1,026,867

632,220

Total assets

\    136,470,927

\   141,874,426

Liabilities:

 

 

Deposits

\     90,469,098

\    92,853,566

Call money and bills sold

2,629,407

2,144,600

Repurchase agreements and cash collateral on securities lent

6,439,598

7,487,633

Trading liabilities 

1,623,918

2,173,567

Derivative financial instruments

4,725,261

5,850,813

Borrowings

12,548,358

10,412,858

Debt securities in issue

5,890,388

7,377,742

Provisions

96,353

425,350

Other liabilities

4,422,166

5,401,790

Current tax liabilities

49,448

61,786

Deferred tax liabilities

25,727

69,330

Total liabilities

128,919,722

134,259,035

Equity:

 

 

Capital stock

2,337,896

2,337,896

Capital surplus

1,081,556

862,933

Retained earnings

1,974,069

2,162,696

Other reserves

280,783

437,177

Treasury stock

(171,761)

(236,037)

Equity attributable to shareholders of Sumitomo Mitsui Financial Group, Inc.

5,502,543

5,564,665

Non-controlling interests

2,048,662

2,050,726

Total equity

7,551,205

7,615,391

Total equity and liabilities

\    136,470,927

\    141,874,426


Consolidated Income Statement

(In millions, except per share data)

 

For the fiscal year ended March 31,

 

2011

2012

Interest income

\     1,720,181

\     1,710,331

Interest expense

311,056

313,631

Net interest income

1,409,125

1,396,700

 

 

 

Fee and commission income

806,704

869,407

Fee and commission expense

132,560

132,562

Net fee and commission income

674,144

736,845

 

 

 

Net trading income

324,479

182,296

Net income from financial assets at fair value
through profit or loss

30,116

33,734

Net investment income

235,911

239,365

Other income

204,470

245,563

Total operating income

2,878,245

2,834,503

 

 

 

Impairment charges on financial assets

433,928

284,310

Net operating income

2,444,317

2,550,193

 

 

 

General and administrative expenses

1,293,546

1,366,705

Other expenses

212,292

239,292

Operating expenses

1,505,838

1,605,997

 

 

 

Share of post-tax loss of associates and joint ventures

5,796

25,004

Profit before tax

932,683

919,192

 

 

 

Income tax expense  

361,165

461,194

Net profit

\       571,518

\       457,998

 

 

 

Profit attributable to:

 

 

Shareholders of Sumitomo Mitsui Financial Group, Inc.

\       464,007

\       345,430

Non-controlling interests

107,511

112,568

 

 

 

Earnings per share:

 

 

Basic

\        328.32

\        248.98

Diluted

328.31

248.29

 


Consolidated Statement of Comprehensive Income

(In millions)

 

For the fiscal year ended March 31,

 

2011

2012

Net profit

\       571,518

\      457,998

 

 

 

Other comprehensive income:

 

 

Available-for-sale financial assets:

 

 

Gains (losses) arising during the period, before tax

(349,080)

253,865

Reclassification adjustments for (gains) losses included
in net profit, before tax 

 

10,957

 

(21,563)

Exchange differences on translating the foreign operations:

 

 

Losses arising during the period, before tax

(121,593)

(34,781)

Reclassification adjustments for (gains) losses included
in net profit, before tax 

 

(505)

 

7,350

Share of other comprehensive loss of associates
and joint ventures

 

(4,225)

 

(2,832)

Income tax relating to components of other comprehensive income

146,520

(43,809)

Other comprehensive income (loss), net of tax

(317,926)

158,230

Total comprehensive income

\       253,592

\       616,228

 

 

 

Total comprehensive income attributable to:

 

 

Shareholders of Sumitomo Mitsui Financial Group, Inc.

\       189,372

\       501,316

Non-controlling interests

64,220

114,912

 


(Reference 2) Reconciliation with Japanese GAAP

 

 

 

(In billions)

 

 

At and for the fiscal year ended

March 31, 2012

 

 

Total equity

Net profit

 

IFRS

\        7,615.4

\         458.0

 

Differences arising from different accounting for:

 

 

 

1. Scope of consolidation

80.4

1.1

 

2. Derivative financial instruments

130.3

56.5

 

3. Investment securities

(130.8)

43.2

 

4. Loans and advances

(138.1)

5.1

 

5. Investments in associates and joint ventures

27.5

(23.4)

 

6. Property, plant and equipment

(5.1)

(6.1)

 

7. Lease accounting

(15.5)

5.3

 

8. Defined benefit plans

31.0

(34.3)

 

9. Deferred tax assets

(321.2)

166.9

 

10. Foreign currency translation

-

(0.6)

 

Others

(87.4)

(13.0)

 

Tax effect of the above

68.5

(17.1)

 

Japanese GAAP

\        7,255.0

\        *641.6

(*)Includes a net profit of 123.1 billion yen attributable to non-controlling interests.

 

A brief explanation of adjustments with significant impacts arising from differences in equity and/or net profit between Japanese GAAP and IFRS is provided below. For a more detailed explanation, please refer to gItem 5. Operating and Financial Review and Prospects|Reconciliation with Japanese GAAPh in the annual report on Form 20-F filed on July 23, 2012 (Eastern Daylight Time).

 

Scope of Consolidation (Item 1)

·    Under IFRS, the SMFG Group consolidates an entity when it gcontrolsh the entity. Control is generally presumed to exist when the SMFG Group has the power to govern the financial and operating policies by owning more than half of the voting power, or by legal or contractual arrangements.

·    A special purpose entity (gSPEh) is consolidated under IFRS when the substance of the relationship between the SPE and the SMFG Group indicates that the SPE is controlled by the SMFG Group. Therefore certain SPEs such as securitization vehicles and investment funds which are not consolidated under Japanese GAAP are consolidated under IFRS.

 

 

 

Derivative financial instruments (Item 2)

(Hedge accounting)

·    The SMFG Group applies hedge accounting under Japanese GAAP. However, the conditions for hedge accounting under IFRS are not fully the same as those under Japanese GAAP. The SMFG Group does not apply hedge accounting under IFRS and reversed the effects of hedge accounting under Japanese GAAP.  

(Fair value measurement of derivative financial instruments)

·    Japanese GAAP and IFRS require Over-the-Counter (gOTCh) derivatives (non-exchange traded derivatives) to be measured at fair value. In principle, there is no significant difference in the definitions of fair value, but in practice there is diversity in the application of valuation techniques used for fair value under Japanese GAAP and IFRS. Therefore, to meet the requirements of fair value under IFRS, adjustments have been made to the fair values under Japanese GAAP to reflect the spread between bid and ask prices, as well as credit risk adjustments for OTC derivatives.

 

Investment securities (Item 3)

(Fair value measurement of investment securities)

·    Under IFRS, available-for-sale financial assets (and financial assets at fair value through profit or loss) should be measured at fair value. The fair value of financial instruments where there is no quoted price in an active market is determined by using valuation techniques.

·    In addition, the fair values of certain financial instruments under Japanese GAAP have been adjusted in order to meet the requirements of fair value under IFRS. For example, the last 1-month average of the closing transaction prices can be used for the fair value measurement of available-for-sale financial assets (listed stocks) under Japanese GAAP, whereas closing spot prices are used under IFRS.

(Impairment of available-for-sale financial assets)

·    Under IFRS, the SMFG Group assesses whether there is objective evidence that available-for-sale financial assets are impaired. For available-for-sale equity instruments, objective evidence of impairment includes a significant or prolonged decline in the fair value below cost.

 

Loans and advances (Item 4)

(Impairment of loans and advances)

·    Under Japanese GAAP, the reserve for possible loan losses for specifically identified significant loans is calculated by using the discounted cash flow (gDCFh) method, which is based on the present value of reasonably estimated cash flows discounted at the original contractual interest rate of the loan. Under IFRS, the allowance for loan losses for individually significant impaired loans is calculated by using the DCF method based on the best estimate of cash flows discounted at the original effective interest rate. In addition, the scope of the loans that are subject to the DCF method under IFRS is wider than that under Japanese GAAP.

·    Under IFRS, the allowance for loan losses for the remaining loans is collectively calculated by homogeneous group using statistical methods based on the historical loss experience and incorporating the effect of the time value of money. A qualitative analysis based on related economic factors is then performed to reflect the current conditions at the end of the reporting period. Under IFRS, the allowance for the non-impaired loan losses is calculated as the incurred but not yet identified losses for the period between the impairment occurring and the loss being identified, although the allowance under Japanese GAAP is calculated based on the expected losses.

 

 

(Loan origination fees and costs)

·    Under IFRS, loan origination fees and costs that are incremental and directly attributable to the origination of a loan are deferred and thus, included in the calculation of the effective interest rate.

 

Deferred tax assets (Item 9)

·    Under IFRS, deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized, without limiting the period over which the temporary difference can be utilized. For example, deferred tax assets for deductible temporary differences relating to impairment of loans and advances and investment securities which cannot be utilized within the specified period are not recognized under Japanese GAAP, whereas they can be recognized under IFRS to the extent that it is probable that future taxable profit will be available.

 




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