Sumitomo Mitsui Financial Group, Inc.

 

 

 

Sumitomo Mitsui Financial Group Announces Claims on

Lehman Brothers Holdings Inc. and its Affiliates

 

 

Tokyo , September 16, 2008 --- Sumitomo Mitsui Financial Group (SMFG) announces that its subsidiaries, including Sumitomo Mitsui Banking Corporation (SMBC) and SMBC subsidiaries have claims pertaining to Lehman Brothers Holdings Inc. (“Lehman Brothers”) and its affiliates.

 

Amount of Claims on Lehman Brothers Holdings Inc. and its Affiliates

·     Credit exposures such as loans     Approximately US$ 0.98 billion

  (secured amount is US$0.88 billion)

·     Bonds                                         Approximately JPY 500 million

 

The majority of the above amount is secured.  We have been examining the situation and estimate the loss, at this point in time, to be approximately JPY 10 billion; a loss provisioning or other necessary steps will be taken this fiscal year.

 

In addition, SMBC participated in loans and commitment lines originated by Lehman Brothers and its affiliates totaling approximately US$3.2 billion (approximately US$0.7 billion in outstanding amount, and approximately US$2.5 billion in undrawn amount).  However, the probability of SMBC incurring losses from these transactions is expected to be very low because the credit risk lies with the underlying obligors who are all investment-grade obligors and not with Lehman Brothers.