Revision of Earnings Target for the Six Months ended September 30, 2014(1/1)
Sumitomo Mitsui Financial Group, Inc.
Revision
of Earnings Target for the Six Months ended September 30, 2014
SMFG has not revised its consolidated earnings forecast for the fiscal year ending March 31, 2015 at this moment.
1. Revision of
consolidated earnings target
(Billions of yen, except percentages)
|
|
Ordinary profit |
Net income |
|
|
Previous target (*) |
(A) |
¥ 560 |
¥ 330 |
|
Revised target |
(B) |
750 |
460 |
|
Change |
(B – A) |
+ 190 |
+ 130 |
|
Percentage change |
(%) |
+ 33.9 |
+ 39.4 |
|
|
|
|
|
|
Results for the six months ended September 30, 2013 |
¥ 835.9 |
¥ 505.7 |
|
(*) Announced in May 2014
2. Reasons for
the revision
SMFG revises its consolidated earnings target for the six months ended September 30, 2014 as Sumitomo Mitsui Banking Corporation (“SMBC”), a major consolidated subsidiary of SMFG, expects an increase in its net income primarily due to higher banking profit and gains on reversal of reserve for possible loan losses, and other consolidated subsidiaries and equity method affiliates also expect good results.
[Appendix]
SMBC non-consolidated earnings target (six months
ended September 30, 2014)
|
|
Banking profit (*2) |
Ordinary profit |
Net income |
|
Total credit cost |
|
|
Previous target (*1) |
(A) |
¥ 370 |
¥ 400 |
¥ 280 |
|
¥ + 50 |
|
Revised target |
(B) |
430 |
580 |
400 |
|
+ 110 |
|
Change |
(B –
A) |
+ 60 |
+ 180 |
+ 120 |
|
+ 60 |
|
|
|
|
|
|
|
|
|
Results for the six months ended September 30, 2013 |
¥ 453.2 |
¥ 523.5 |
¥ 330.2 |
|
¥ + 78.3 |
|
(*1)
Announced in May 2014
(*2) Before provision for
general reserve for possible loan losses
|
Banking profit (before provision for general reserve for possible loan losses) SMBC expects to secure banking profit of approximately ¥430 billion, or ¥60 billion above the previous target. This is mainly due to the good performance of the Treasury Unit. Total credit cost Total credit cost is expected to be a net reversal of approximately ¥110 billion, as compared to previous target of ¥50 billion. This is mainly due to our individualized efforts to assist certain debtors to improve their businesses and financial conditions. |
|
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 us and our managements with respect
to our 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 our securities portfolio; our
ability to successfully implement our business strategy through our
subsidiaries, affiliates and alliance partners; exposure to new risks as we
expand the scope of our 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. We undertake no obligation to update or
revise any forward-looking statements. Please refer to our most recent disclosure documents such as our
annual report or registration statement on Form 20-F and other documents
submitted to the U.S. Securities and Exchange Commission, as well as our
earnings press releases, for a more detailed description of the risks and
uncertainties that may affect our financial conditions and our operating
results, and investors’ decisions. |
