Sumitomo Mitsui Financial Group Announces

Revision of Earnings Forecasts of

a Consolidated Subsidiary (The Minato Bank, Limited)

 

 

TOKYO , April 27, 2009 --- Sumitomo Mitsui Financial Group, Inc. (SMFG) hereby announces that The Minato Bank, Limited, a consolidated subsidiary of SMFG, has revised its earnings forecast published on November 13, 2008 (see Appendix).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revision of Earnings Forecast for Fiscal Year 2008

 

KOBE , Japan , April 27, 2009 --- The Minato Bank, Limited announces a revision of its earnings

forecast for the fiscal year ended March 31, 2009 (fiscal 2008), which was published on

November 13, 2008.

 

1. Revision of Earnings Forecasts (Fiscal year ended March 31,2009)

 

(1)    Consolidated basis

                                            (Millions of yen, except percentages)

	Ordinary income	Ordinary profit	Net income
Previous forecast　(A)	74,700	(3,500)	(5,800)
Revised forecast　(B)	74,800	(9,000)	(9,300)
Change　(B)-(A)	100	(5,500)	(3,500)
Percentage change (%)	0.1%	−	−
(Reference) Fiscal 2007	81,610	8,770	5,757

 

(2)    Non-consolidated basis

(Millions of yen, except percentages)

	Ordinary income	Ordinary profit	Net income
Previous forecast　(A)	69,000	(3,300)	(5,000)
Revised forecast　(B)	69,300	(9,200)	(8,900)
Change　(B)-(A)	300	(5,900)	(3,900)
Percentage change (%)	0.4%	−	−
(Reference) Fiscal 2007	73,587	7,342	4,229

 

2. Reason for the revision

 

  (1) Non-consolidated basis

  As Minato Bank assumes that the recent economic slowdown in a global market since last year continues for the time being, Minato Bank has decided to make additional loss provisions for its loan portfolio in preparation for further deterioration in business environment in order to promote a steady recovery of its earnings from fiscal 2009. As a result, Minato Bank has revised its earnings forecast for fiscal 2008.

 

  (2) Consolidated basis

  Revision of consolidated earnings forecast is due mainly to the revision of non-consolidated earnings.

 

 

 

 

[ Reference ]

 

 1. Fiscal year ended March 31, 2009

(Millions of yen)

			Previous forecast (November13, 2008)	Revised forecast	Difference
Gross banking profit			53,800	54,600	800
Expenses (excluding non-recurring losses)			(32,600)	(32,600)	0
Banking profit (before provision for general reserve for possible loan losses)			21,200	22,000	800
Excluding gain (loss) on bonds			20,800	20,400	(400)
Provision of allowance for general loan losses (a)			(3,800)	(4,500)	(700)
Banking profit			17,400	17,500	100
Credit related costs (b)			(19,400)	(25,600)	(6,200)
Ordinary profit			(3,300)	(9,200)	(5,900)
Net income			(5,000)	(8,900)	(3,900)
* Credit cost（a＋b）			(23,200)	(30,100)	(6,900)

 

 

Minato Bank expects to secure banking profit (before provision for general reserve for possible loan losses, and excluding gain (loss) on bonds) of more than 20 billion yen, due mainly to an increase in deposits and loans, despite a decrease in net fees and commissions from sales of investment trusts, etc.

However, under the rapid slowdown in the global economy since last year, Minato Bank has decided to make additional loss provisions for its loan portfolio in case of further deterioration of customers' business performances, in order to prepare for the expected risks at the moment.

As a result, Minato Bank expects credit cost to be 30.1 billion yen, an increase of 6.9 billion yen from the previous forecast.

 

 2. BIS capital ratio forecasts (Non-consolidated basis)

 

				March 31, 2008	September 30, 2008	March 31, 2009
				(Result)	(Result)	(Forecast)
Capital ratio				9.71%	9.42%	9.40%

 

BIS capital ratio on a non-consolidated basis is estimated to be 9.40% as of March 31, 2009.

 

This document contains certain forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may materially differ from those contained in the forward-looking statements as a result of various factors.

The following items are among the factors that could cause actual results to differ materially from the forward-looking statements in this document: business conditions in the banking industry, the regulatory environment, new legislation, competition with other financial services companies, changing technology and evolving banking industry standards and matters.