Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

Sumitomo Mitsui Financial Group, Inc.

/s/ Jun Okahashi

Name: Jun Okahashi

Title: General Manager, Financial Accounting Dept.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of November 2023

Commission File Number 001-34919

SUMITOMO MITSUI FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan

(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:		Form 20-F ☒		Form 40-F ☐

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 14, 2023

Financial Results

for the six months

ended September 30, 2023

- Supplementary Information -

Sumitomo Mitsui Financial Group, Inc.

Table of contents

Page

Income analysis

Consolidated

Non-consolidated

…

Interest spread (domestic)

Non-consolidated

…

Gains (losses) on securities

Non-consolidated

…

Unrealized gains (losses) on securities

Consolidated

Non-consolidated

…

Balance of securities, classified by maturity

Non-consolidated

…

Notional amount of interest rate swaps (under deferred hedge accounting), classified by remaining maturity

Non-consolidated

…

Employee retirement benefits

Consolidated

Non-consolidated

…

Classification based on self-assessment and the Banking Act and the Reconstruction Act, and write-offs / reserves

Non-consolidated

…

Reserve for possible loan losses and reserve ratio

Consolidated

Non-consolidated

…

10.

Non-performing loans (NPLs) based on the Banking Act and the Reconstruction Act, and coverage

Consolidated

Non-consolidated

…

11.

Results of off-balancing of NPLs

Non-consolidated

…

12.

Loan portfolio, classified by industry

Non-consolidated

…

13.

Loan portfolio, classified by country

Non-consolidated

…

14.

Balance of deposits and loans

Non-consolidated

…

15.

Deferred tax assets and liabilities

Non-consolidated

…

16.

Capital ratio (BIS guidelines)

Consolidated

Non-consolidated

…

17.

ROE

Consolidated

…

18.

Earnings targets and dividends forecast for FY3/2024

Consolidated

Non-consolidated

…

Reference: Financial statements of SMBC

Non-consolidated

…

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; 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; incurrence of significant credit-related costs; and declines in the value of our securities portfolio. 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 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.

Sumitomo Mitsui Financial Group

1. Income analysis


Consolidated						(Millions of yen)
				Six months ended Sep. 30, 2023		Six months ended Sep. 30, 2022
					Change

Consolidated gross profit			1	1,817,325	184,970	1,632,355

	Net interest income		2	887,752	14,163	873,589

	Trust fees		3	3,784	740	3,044

	Net fees and commissions		4	684,964	96,671	588,293

	Net trading income		5	(65,111)	37,334	(102,445)

	Net other operating income		6	305,934	36,061	269,873

General and administrative expenses			7	(1,082,198)	(119,636)	(962,562)

Equity in gains (losses) of affiliates			8	35,785	(16,294)	52,079


Consolidated net business profit			9	770,912	49,040	721,872


Total credit cost			10	(100,335)	(17,222)	(83,113)

	Credit costs		11	(108,404)	(14,773)	(93,631)

		Write-off of loans	12	(84,373)	(39,853)	(44,520)

		Provision for reserve for possible loan losses	13	(10,332)	28,319	(38,651)

		Others	14	(13,697)	(3,237)	(10,460)

	Recoveries of written-off claims		15	8,069	(2,449)	10,518

Gains (losses) on stocks			16	46,814	(45,294)	92,108

Other income (expenses)			17	(8,158)	(3,362)	(4,796)


Ordinary profit			18	709,232	(16,839)	726,071


Extraordinary gains (losses)			19	(2,846)	(1,449)	(1,397)

	Gains (losses) on disposal of fixed assets		20	(1,832)	(1,321)	(511)

	Losses on impairment of fixed assets		21	(733)	152	(885)

Income before income taxes			22	706,386	(18,288)	724,674

Income taxes - current			23	(176,906)	(30,853)	(146,053)

Income taxes - deferred			24	(837)	46,855	(47,692)

Profit			25	528,642	(2,285)	530,927

Profit attributable to non-controlling interests			26	(2,176)	3,324	(5,500)

Profit attributable to owners of parent			27	526,465	1,038	525,427

Notes:	1. Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.
	2. Consolidated gross profit = (Interest income - Interest expenses) + Trust fees + (Fees and commissions - Fees and commissions payments) + (Trading income - Trading losses) + (Other operating income - Other operating expenses)

	Number of consolidated subsidiaries and affiliates
				Sep. 30, 2023		Mar. 31, 2023
					Change
	Consolidated subsidiaries		28	183	(1)	184
	Equity method affiliates		29	331	23	308

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Sumitomo Mitsui Financial Group


SMBC non-consolidated						(Millions of yen)
				Six months ended Sep. 30, 2023		Six months ended Sep. 30, 2022
				Six months ended Sep. 30, 2023	Change	Six months ended Sep. 30, 2022
Gross banking profit			1	895,430	(32,791)	928,221
	Gross domestic profit		2	407,874	(29,380)	437,254
		Net interest income	3	297,820	(55,512)	353,332
		Trust fees	4	1,368	347	1,021
		Net fees and commissions	5	111,862	17,249	94,613
		Net trading income	6	1,299	1,781	(482)
		Net other operating income	7	(4,476)	6,754	(11,230)

		Gains (losses) on bonds	8	(3,198)	13,627	(16,825)
	Gross international profit		9	487,555	(3,412)	490,967
		Net interest income	10	229,928	(28,229)	258,157
		Net fees and commissions	11	119,711	(7,829)	127,540
		Net trading income	12	(183,030)	13,430	(196,460)
		Net other operating income	13	320,946	19,216	301,730

		Gains (losses) on bonds	14	2,994	49,521	(46,527)
Expenses (excluding non-recurring losses)			15	(481,569)	(37,817)	(443,752)

Overhead ratio			16	53.8%	6.0%	47.8%
	Personnel expenses		17	(205,412)	(9,412)	(196,000)
	Non-personnel expenses		18	(247,006)	(26,333)	(220,673)
	Taxes		19	(29,150)	(2,073)	(27,077)

Banking profit (before provision for general reserve for possible loan losses)			20	413,860	(70,609)	484,469

Gains (losses) on bonds			21	(204)	63,148	(63,352)
	Core banking profit (20-21)		22	414,064	(133,758)	547,822

		excluding gains (losses) on cancellation of investment trusts	23	409,374	(107,153)	516,527

Provision for general reserve for possible loan losses			24	-	(32,917)	32,917
Banking profit			25	413,860	(103,527)	517,387
Non-recurring gains (losses)			26	37,177	13,179	23,998
	Credit costs		27	(20,851)	75,636	(96,487)
	Gains on reversal of reserve for possible loan losses		28	10,599	10,599	-
	Recoveries of written-off claims		29	39	14	25
	Gains (losses) on stocks		30	40,636	(43,573)	84,209
	Other non-recurring gains (losses)		31	6,751	(29,500)	36,251

Ordinary profit			32	451,037	(90,349)	541,386

Extraordinary gains (losses)			33	(1,630)	(1,259)	(371)
	Gains (losses) on disposal of fixed assets		34	(998)	(966)	(32)
	Losses on impairment of fixed assets		35	(631)	(292)	(339)
Income before income taxes			36	449,407	(91,607)	541,014
Income taxes - current			37	(127,584)	2,235	(129,819)
Income taxes - deferred			38	23,907	35,346	(11,439)

Net income			39	345,730	(54,025)	399,755


Total credit cost (24+27+28+29)			40	(10,211)	53,333	(63,544)
	Provision for general reserve for possible loan losses		41	28,813	(4,104)	32,917
	Write-off of loans		42	(19,977)	(16,265)	(3,712)
	Provision for specific reserve for possible loan losses		43	(17,233)	74,467	(91,700)
	Losses on sales of delinquent loans		44	(873)	(75)	(798)
	Provision for loan loss reserve for specific overseas countries		45	(979)	(704)	(275)
	Recoveries of written-off claims		46	39	14	25

Note: Amounts less than 1 million yen are rounded down. Figures in parenthesis indicate the amount of loss or decrease.

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Sumitomo Mitsui Financial Group

2. Interest spread (domestic)


SMBC non-consolidated							(%)
					Six months ended Sep. 30, 2023		Six months ended Sep. 30, 2022
			Three months ended Jun. 30, 2023	Three months ended Sep. 30, 2023	Six months ended Sep. 30, 2023	Change	Six months ended Sep. 30, 2022
Yield on interest earning assets (A)					0.70	(0.11)	0.81
	Interest earned on loans and bills discounted (C)		0.82	0.83	0.82	(0.02)	0.84
	Interest earned on securities				0.83	(0.41)	1.24
Total cost of funding (including expenses) (B)					0.42	0.01	0.41
	Cost of interest bearing liabilities				0.02	0.00	0.02
		Interest paid on deposits, etc. (D)	0.00	0.00	0.00	(0.00)	0.00
		Interest paid on other liabilities			0.17	0.07	0.10
	Expense ratio				0.40	0.01	0.39
Overall interest spread (A) - (B)					0.27	(0.13)	0.40
	Interest spread (C) - (D)		0.82	0.83	0.82	(0.02)	0.84

	Reference: After deducting loans to the Japanese government, etc.
	Interest earned on loans and bills discounted (E)		0.84	0.84	0.84	(0.01)	0.85
	Interest spread (E) - (D)		0.84	0.84	0.84	(0.01)	0.85

3. Gains (losses) on securities

SMBC non-consolidated							(Millions of yen)
					Six months ended Sep. 30, 2023		Six months ended Sep. 30, 2022
					Six months ended Sep. 30, 2023	Change	Six months ended Sep. 30, 2022
Gains (losses) on bonds					(204)	63,148	(63,352)
	Gains on sales				10,401	(16,317)	26,718
	Losses on sales				(6,550)	76,128	(82,678)
	Gains on redemption				0	0	0
	Losses on redemption				(4,055)	3,337	(7,392)
	Losses on devaluation				-	-	-


Gains (losses) on stocks					40,636	(43,573)	84,209
	Gains on sales				86,882	(34,398)	121,280
	Losses on sales				(2,748)	23,568	(26,316)
	Losses on devaluation				(43,496)	(32,743)	(10,753)

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Sumitomo Mitsui Financial Group

4. Unrealized gains (losses) on securities


Consolidated											(Millions of yen)
					Sep. 30, 2023					Mar. 31, 2023
					Balance sheet amount	Net unrealized gains (losses)				Balance sheet amount	Net unrealized gains (losses) (b)

						(a)	(a) - (b)	Gains	Losses

	Held-to-maturity securities			1	212,194	(1,706)	(1,322)	11	1,717	165,592	(384)

	Other securities			2	39,439,528	2,093,543	178,395	3,399,873	1,306,329	32,464,971	1,915,148

		Stocks		3	3,800,562	2,426,161	481,393	2,431,857	5,696	3,345,398	1,944,768

		Bonds		4	12,958,464	(120,044)	(55,838)	9,759	129,803	13,177,490	(64,206)

			Japanese government bonds	5	9,512,126	(64,521)	(28,088)	876	65,397	9,576,298	(36,433)

		Others		6	22,680,500	(212,573)	(247,159)	958,256	1,170,829	15,942,082	34,586

			Foreign bonds	7	19,103,008	(1,114,268)	(416,957)	29,082	1,143,350	13,081,534	(697,311)

	Other money held in trust			8	313	-	-	-	-	312	-

	Total			9	39,652,035	2,091,837	177,074	3,399,884	1,308,047	32,630,875	1,914,763

		Stocks		10	3,800,562	2,426,161	481,393	2,431,857	5,696	3,345,398	1,944,768

		Bonds		11	13,170,659	(121,750)	(57,159)	9,770	131,521	13,343,082	(64,591)

		Others		12	22,680,813	(212,573)	(247,159)	958,256	1,170,829	15,942,394	34,586

SMBC non-consolidated											(Millions of yen)
					Sep. 30, 2023					Mar. 31, 2023
					Balance sheet amount	Net unrealized gains (losses)				Balance sheet amount	Net unrealized gains (losses) (b)

						(a)	(a) - (b)	Gains	Losses

	Held-to-maturity securities			13	22,300	(618)	(245)	-	618	22,300	(373)

	Stocks of subsidiaries and affiliates			14	4,672,371	(3,233)	9,111	627	3,860	4,581,943	(12,344)

	Other securities			15	34,669,555	1,530,141	106,977	2,700,578	1,170,437	28,309,722	1,423,164

		Stocks		16	3,465,017	2,316,258	434,547	2,321,044	4,785	3,062,115	1,881,711

		Bonds		17	13,140,592	(117,127)	(54,746)	9,741	126,868	13,345,964	(62,381)

			Japanese government bonds	18	9,512,126	(64,521)	(28,088)	876	65,397	9,576,298	(36,433)

		Others		19	18,063,945	(668,990)	(272,825)	369,793	1,038,783	11,901,641	(396,165)

			Foreign bonds	20	15,270,329	(989,803)	(372,660)	21,814	1,011,617	9,709,360	(617,143)

	Total			21	39,364,226	1,526,289	115,843	2,701,206	1,174,916	32,913,965	1,410,446

		Stocks		22	3,761,321	2,316,886	434,586	2,321,671	4,785	3,358,934	1,882,300

		Bonds		23	13,162,892	(117,745)	(54,991)	9,741	127,486	13,368,264	(62,754)

		Others		24	22,440,012	(672,850)	(263,751)	369,793	1,042,643	16,186,765	(409,099)


Notes:	1.	The figures above include negotiable certificates of deposit in “Cash and due from banks” and beneficiary claims on loan trust in “Monetary claims bought.”

	2.	Net unrealized gains (losses) are valuated at market prices as of the balance sheet date.

	3.	Other securities and Other money held in trust are measured at market prices. Unrealized gains (losses) indicate the difference between the acquisition costs (or amortized costs) and the balance sheet amounts.

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Sumitomo Mitsui Financial Group

5. Balance of securities, classified by maturity

Balance of other securities with maturities and bonds of held-to-maturity


SMBC non-consolidated																	(Billions of yen)
		Sep. 30, 2023										Mar. 31, 2023

		1 year or less		More than 1 year to 5 years		More than 5 years to 10 years		More than 10 years		Total		1 year or less		More than 1 year to 5 years		More than 5 years to 10 years		More than 10 years		Total

Bonds			6,614.7		4,317.5		1,276.2		954.6		13,162.9		6,550.3		4,768.2		1,243.2		806.5	13,368.3
	Japanese government bonds		5,914.5		2,925.6		147.8		524.3		9,512.1		5,909.0		3,236.3		89.7		341.3	9,576.3
	Japanese local government bonds		39.1		266.3		743.4		10.0		1,058.8		18.1		283.3		756.4		10.6	1,068.3
	Japanese short-term bonds		420.0		-		-		-		420.0		425.0		-		-		-	425.0
	Japanese corporate bonds		241.1		1,125.6		385.1		420.2		2,171.9		198.4		1,248.7		397.0		454.7	2,298.7

Others			3,054.8		7,049.3		1,952.9		3,683.9		15,741.0		2,530.8		2,818.1		1,936.7		2,814.4	10,100.0

Total			9,669.5		11,366.7		3,229.1		4,638.5		28,903.9		9,081.1		7,586.3		3,179.9		3,621.0	23,468.3

6. Notional amount of interest rate swaps (under deferred hedge accounting), classified by remaining maturity

SMBC non-consolidated

(Billions of yen)


		Sep. 30, 2023				Mar. 31, 2023

		1 year or less	More than 1 year to 5 years	More than 5 years	Total	1 year or less	More than 1 year to 5 years	More than 5 years	Total
	Receivable fixed rate / payable floating rate	3,156.9	27,026.2	6,311.3	36,494.5	4,012.1	21,445.1	7,042.4	32,499.6
	Receivable floating rate / payable fixed rate	897.4	11,575.6	11,586.0	24,059.0	1,679.0	8,696.0	11,756.3	22,131.3

Total		4,054.2	38,601.8	17,897.4	60,553.4	5,691.1	30,141.1	18,798.7	54,630.9

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Sumitomo Mitsui Financial Group

7. Employee retirement benefits

Consolidated

(1) Projected benefit obligation


					(Millions of yen)
			At the beginning of FY3/2024		At the beginning of FY3/2023
			At the beginning of FY3/2024	Change	At the beginning of FY3/2023
Fair value of plan assets		(A)	1,664,273	21,062	1,643,211
Projected benefit obligation		(B)	995,068	(65,961)	1,061,029
Net surplus (deficit)		(A-B)	669,205	87,024	582,181
	Net defined benefit asset		704,654	81,609	623,045
	Net defined benefit liability		35,449	(5,415)	40,864

Measurements of defined benefit plans (before tax effect deduction)			(192,184)	(17,705)	(174,479)
	Unrecognized prior service cost (deductible from the obligation)		(14,188)	(1,793)	(12,395)
	Unrecognized net actuarial gain (loss)		(177,996)	(15,913)	(162,083)
(2) Retirement benefit expenses
(Millions of yen)
			Six months ended Sep. 30, 2023		Six months ended Sep. 30, 2022
			Six months ended Sep. 30, 2023	Change	Six months ended Sep. 30, 2022
Retirement benefit expenses			(5,020)	2,642	(7,662)
SMBC non-consolidated
(1) Projected benefit obligation
					(Millions of yen)
			At the beginning of FY3/2024		At the beginning of FY3/2023
			At the beginning of FY3/2024	Change	At the beginning of FY3/2023
Projected benefit obligation		(A)	850,971	(55,052)	906,023
	<Discount rate>		<0.90%>	<0.29%>	<0.61%>
	Fair value of plan assets	(B)	1,544,359	29,528	1,514,831
	Reserve for employee retirement benefits	(C)	-	-	-
	Prepaid pension cost	(D)	496,328	68,164	428,164
	Unrecognized prior service cost (deductible from the obligation)	(E)	(16,349)	2,652	(19,001)
	Unrecognized net actuarial gain (loss)	(A-B-C+D-E)	(180,710)	(19,068)	(161,642)
(2) Retirement benefit expenses
					(Millions of yen)
			Six months ended Sep. 30, 2023		Six months ended Sep. 30, 2022
			Six months ended Sep. 30, 2023	Change	Six months ended Sep. 30, 2022
Retirement benefit expenses			(16,043)	2,515	(18,558)
	Service cost		9,286	(915)	10,201
	Interest cost on projected benefit obligation		3,829	1,066	2,763
	Expected returns on plan assets		(19,625)	(253)	(19,372)
	Amortization of unrecognized prior service cost		(1,325)	-	(1,325)
	Amortization of unrecognized net actuarial gain (loss)		(12,918)	3,020	(15,938)
	Others		4,710	(404)	5,114

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Sumitomo Mitsui Financial Group

8. Classification based on self-assessment and the Banking Act and the Reconstruction Act, and write-offs / reserves

LOGO


*1		Includes direct reduction of 194.9 billion yen.
*2		Includes reserve for assets that are not subject to disclosure based on the Banking Act and the Reconstruction Act. (Bankrupt/Effectively bankrupt borrowers: 3.0 billion yen, Potentially bankrupt borrowers: 7.3 billion yen)
*3		Reserve ratios for claims on “Bankrupt borrowers”, “Effectively bankrupt borrowers”, “Potentially bankrupt borrowers”, “Substandard borrowers” and “Borrowers requiring caution (including Substandard borrowers)” are the proportion of the reserve for possible loan losses to each category’s total claims, excluding the portion secured by collateral or guarantees, etc.
*4		Reserve ratios for claims on “Normal borrowers” and “Borrowers requiring caution (excluding claims to Substandard borrowers)” are the proportion of the reserve for possible loan losses to the respective claims of each category.
		The reserve ratio for unsecured claims on “Borrowers requiring caution (excluding claims to Substandard borrowers)” is shown in [ ].
*5		Includes Specific reserve for “Borrowers requiring caution” totaling 0.1 billion yen.
*6		The proportion of the reserve to the claims, excluding the portion secured by collateral or guarantees, etc.

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Sumitomo Mitsui Financial Group

9. Reserve for possible loan losses and reserve ratio



Consolidated						(Millions of yen, %)
		Sep. 30, 2023			Mar. 31, 2023
		Sep. 30, 2023			Mar. 31, 2023
		(a)	Reserve Ratio (b)	(a) - (c)	(c)	Reserve Ratio (d)
Reserve for possible loan losses		725,472	82.42	(24,897)	750,369	80.87
	General reserve	542,799		892	541,907
	Specific reserve	161,550		(25,373)	186,923
	Loan loss reserve for specific overseas countries	21,122		(416)	21,538

	Amount of direct reduction	242,619		81,127	161,492

SMBC non-consolidated						(Millions of yen, %)
		Sep. 30, 2023			Mar. 31, 2023
		Sep. 30, 2023			Mar. 31, 2023
		(a)	Reserve Ratio (b)	(a) - (c)	(c)	Reserve Ratio (d)
Reserve for possible loan losses		473,334	86.19	(50,554)	523,888	89.32
	General reserve	361,613		(14,533)	376,146
	Specific reserve	95,273		(37,000)	132,273
	Loan loss reserve for specific overseas countries	16,448		980	15,468

	Amount of direct reduction	194,902		71,929	122,973

Note: Reserve ratio (Reserve for possible loan losses / NPLs based on the Banking Act and the Reconstruction Act (Excluding Normal Assets)) is after direct reduction.

- 8 -

Sumitomo Mitsui Financial Group

10. Non-performing loans (NPLs) based on the Banking Act and the Reconstruction Act, and coverage


Consolidated					(Millions of yen, %)
			Sep. 30, 2023		Mar. 31, 2023
			(a)	(a) - (b)	(b)
	Bankrupt and quasi-bankrupt loans		119,047	26,106	92,941
	Doubtful loans		456,315	(37,843)	494,158
	Substandard loans		304,797	(35,935)	340,732
		Past due loans (3 months or more)	41,957	22,013	19,944
		Restructured loans	262,839	(57,949)	320,788
Total (A)			880,160	(47,673)	927,833
	Normal assets		120,444,529	5,305,243	115,139,286
	Grand total (B)		121,324,689	5,257,569	116,067,120
NPL ratio (A/B)			0.73	(0.07)	0.80

					(Millions of yen)
			Sep. 30, 2023		Mar. 31, 2023
			(a)	(a) - (b)	(b)
Total coverage (C)			585,216	(54,014)	639,230
	Reserve for possible loan losses (D)		191,292	(35,140)	226,432
	Amount recoverable by guarantees, collateral and others (E)		393,923	(18,874)	412,797

					(%)
Coverage ratio (C) / (A)			66.49	(2.40)	68.89
Coverage ratio calculated with total reserve for possible loan losses included in the numerator			127.18	1.82	125.36

					(%)
Reserve ratio to unsecured assets (D) / (A - E)			39.34	(4.62)	43.96
Reserve ratio calculated with total reserve for possible loan losses included in the numerator			149.20	3.51	145.69

SMBC non-consolidated					(Millions of yen, %)
			Sep. 30, 2023		Mar. 31, 2023
			(a)	(a) - (b)	(b)
	Bankrupt and quasi-bankrupt loans		94,079	18,587	75,492
	Doubtful loans		334,739	(41,104)	375,843
	Substandard loans		120,337	(14,877)	135,214
		Past due loans (3 months or more)	222	(5,133)	5,355
		Restructured loans	120,114	(9,745)	129,859
Total (A)			549,156	(37,394)	586,550
	Normal assets		116,243,479	3,710,589	112,532,890
	Grand total (B)		116,792,636	3,673,196	113,119,440
NPL ratio (A/B)			0.47	(0.05)	0.52

					(Millions of yen)
			Sep. 30, 2023		Mar. 31, 2023
			(a)	(a) - (b)	(b)
Total coverage (C)			476,264	(29,232)	505,496
	Reserve for possible loan losses (D)		129,164	(48,450)	177,614
	Amount recoverable by guarantees, collateral and others (E)		347,100	19,218	327,882

					(%)
Coverage ratio (C) / (A)			86.73	0.55	86.18
Coverage ratio calculated with total reserve for possible loan losses included in the numerator			149.40	4.18	145.22

					(%)
Reserve ratio to unsecured assets (D) / (A - E)			63.93	(4.73)	68.66
Reserve ratio calculated with total reserve for possible loan losses included in the numerator			234.26	31.73	202.53

Note: Reserve for possible loan losses is sum of general reserve for substandard loans and specific reserve.

- 9 -

Sumitomo Mitsui Financial Group

11. Results of off-balancing of NPLs

SMBC non-consolidated

(Billions of yen)




			Sep. 30, 2023 (a)	(a) - (b)	NPLs newly classified during the six months ended Sep. 30, 2023	Amount of off-balancing	Mar. 31, 2023 (b)

	Bankrupt and quasi-bankrupt loans		94.1	18.6	29.1	(10.5)	75.5

	Doubtful loans		334.7	(41.1)	53.0	(94.1)	375.8

	Total		428.8	(22.5)	82.1	(104.6)	451.3

Result of measures connected to off-balancing (*1)			63.6				55.0



		Breakdown of off-balancing by factor (*2)	Disposition by borrowers’ liquidation			(2.1)
			Reconstructive disposition			(0.0)
			Improvement in debtors’ performance due to reconstructive disposition			0.0
			Loan sales to market			(6.4)
			Direct write-offs			(67.3)
			Others			(28.8)
				Collection / repayment, etc.		(17.5)
				Improvement in debtors’ performance		(11.3)

			Total			(104.6)


*1	The measures connected to off-balancing are legal reorganizations and other similar measures, corporate splits to good companies and bad companies, partial direct write-offs of retail exposure to individuals and small- and medium-sized enterprises, and trusts to RCC for the purpose of revitalization which is scheduled to be off-balanced before the maturity.

*2	1.	“Disposition by borrowers’ liquidation” refers to abandonment or write-off of loans involved in bankruptcy liquidation proceedings (bankruptcy or special liquidations).

	2.	“Reconstructive disposition” refers to abandonment of loans involved in reconstructive bankruptcy proceedings (corporate reorganization and civil rehabilitation), debt forgiveness involved in special mediation or other types of civil mediation, or debt forgiveness for restructuring involved in private reorganization.

- 10 -

Sumitomo Mitsui Financial Group

12. Loan portfolio, classified by industry

SMBC non-consolidated

(1) Loans and bills discounted, classified by industry

(Millions of yen, %)


		Sep. 30, 2023			Mar. 31, 2023
		(a)	Ratio	(a) - (b)	(b)	Ratio
Domestic offices (excluding Japan offshore banking accounts)		61,643,700	100.0	556,238	61,087,462	100.0
	Manufacturing	9,396,451	15.2	411,692	8,984,759	14.7
	Agriculture, forestry, fisheries and mining	230,496	0.4	15,346	215,150	0.4
	Construction	801,010	1.3	(3,329)	804,339	1.3
	Transportation, communications and public enterprises	5,986,513	9.7	96,450	5,890,063	9.6
	Wholesale and retail	4,940,131	8.0	(75,287)	5,015,418	8.2
	Finance and insurance	7,763,386	12.6	(193,310)	7,956,696	13.0
	Real estate	10,365,917	16.8	429,081	9,936,836	16.3
	Goods rental and leasing	2,385,816	3.9	33,031	2,352,785	3.9
	Various services	4,740,946	7.7	(47,576)	4,788,522	7.8
	Municipalities	449,177	0.7	(147,889)	597,066	1.0
	Others	14,583,851	23.7	38,026	14,545,825	23.8
Overseas offices and Japan offshore banking accounts		35,601,998	100.0	2,382,063	33,219,935	100.0
	Public sector	281,918	0.8	34,745	247,173	0.7
	Financial institutions	2,807,696	7.9	342,374	2,465,322	7.4
	Commerce and industry	30,378,406	85.3	1,822,264	28,556,142	86.0
	Others	2,133,977	6.0	182,681	1,951,296	5.9
Total		97,245,699	-	2,938,302	94,307,397	-

- 11 -

Sumitomo Mitsui Financial Group

(2) NPLs based on the Banking Act and the Reconstruction Act, classified by industry, and reserve ratio

(Millions of yen, %)


		Sep. 30, 2023			Mar. 31, 2023
		(a)	Reserve ratio	(a) - (b)	(b)
Domestic offices (excluding Japan offshore banking accounts)		335,525	62.1	(8,379)	343,904
	Manufacturing	68,882	53.6	(1,569)	70,451
	Agriculture, forestry, fisheries and mining	1,580	97.8	237	1,343
	Construction	6,837	55.1	(9)	6,846
	Transportation, communications and public enterprises	27,708	64.9	(10,164)	37,872
	Wholesale and retail	63,870	70.8	9,848	54,022
	Finance and insurance	6,384	63.0	(126)	6,510
	Real estate	32,828	45.1	(1,649)	34,477
	Goods rental and leasing	268	55.1	(196)	464
	Various services	95,773	54.9	(3,083)	98,856
	Municipalities	-	-	-	-
	Others	31,390	100.0	(1,670)	33,060
Overseas offices and Japan offshore banking accounts		213,630	66.6	(29,016)	242,646
	Public sector	-	-	-	-
	Financial institutions	-	-	-	-
	Commerce and industry	200,587	68.3	(29,281)	229,868
	Others	13,042	57.1	265	12,777
Total		549,156	63.9	(37,394)	586,550


Note:		Reserve ratio

		= (Reserve for possible loan losses) / (Assets excluding amounts recoverable due to guarantees, collateral and others) X 100

		Reserve for possible loan losses is sum of general reserve for substandard loans and specific reserve.

(3) Consumer loans outstanding


					(Millions of yen)
			Sep. 30, 2023		Mar. 31, 2023
			(a)	(a) - (b)	(b)

Consumer loans			11,788,203	32,811	11,755,392
	Housing loans		11,039,029	24,858	11,014,171

		Self-residential purpose	9,143,579	78,018	9,065,561

	Other consumer loans		749,174	7,954	741,220

(4) Loans to small- and medium-sized enterprises, etc.


			(Millions of yen, %)
	Sep. 30, 2023		Mar. 31, 2023
	(a)	(a) - (b)	(b)
Outstanding balance	36,534,620	1,109,862	35,424,758
Ratio to total loans	59.3	1.3	58.0

Note: Outstanding balance includes loans to individuals.

- 12 -

Sumitomo Mitsui Financial Group

13. Loan portfolio, classified by country

SMBC non-consolidated

(1) Loans outstanding, classified by major domicile

(Millions of yen, %)


		Sep. 30, 2023			Mar. 31, 2023
		(a)	Ratio	(a) - (b)	(b)	Ratio
Asia		8,377,272	24.3	226,037	8,151,235	25.4
	Indonesia	233,764	0.7	4,837	228,927	0.7
	Thailand	1,064,022	3.1	801	1,063,221	3.3
	Korea	486,606	1.4	4,264	482,342	1.5
	Hong Kong	1,667,995	4.8	(237,390)	1,905,385	5.9
	China	130,786	0.4	(59,839)	190,625	0.6
	Taiwan	602,438	1.7	71,518	530,920	1.7
	Singapore	2,121,759	6.2	90,835	2,030,924	6.3
	India	1,083,916	3.1	214,624	869,292	2.7
	Others	985,986	2.9	136,387	849,599	2.7
Oceania		2,614,441	7.6	248,326	2,366,115	7.4
	Australia	2,527,746	7.3	260,406	2,267,340	7.1
	Others	86,695	0.3	(12,080)	98,775	0.3
North America		13,124,501	38.1	1,182,233	11,942,268	37.2
	United States	10,284,193	29.8	798,469	9,485,724	29.6
	Others	2,840,308	8.3	383,764	2,456,544	7.6
Central and South America		2,364,782	6.8	293,408	2,071,374	6.5
	Brazil	484,648	1.4	107,949	376,699	1.2
	Panama	428,321	1.2	(4,465)	432,786	1.4
	Others	1,451,813	4.2	189,924	1,261,889	3.9
Western Europe		5,132,191	14.9	43,643	5,088,548	15.9
	United Kingdom	1,371,066	4.0	17,577	1,353,489	4.2
	Ireland	498,904	1.4	(299,542)	798,446	2.5
	Netherlands	999,424	2.9	107,777	891,647	2.8
	Others	2,262,797	6.6	217,831	2,044,966	6.4
Eastern Europe		244,634	0.7	30,769	213,865	0.7
	Russia	183,215	0.5	14,194	169,021	0.5
	Others	61,419	0.2	16,575	44,844	0.2
Others		2,626,785	7.6	395,899	2,230,886	6.9

Total		34,484,606	100.0	2,420,315	32,064,291	100.0

Note: Classified by domicile of debtors.

(2) NPLs based on the Banking Act and the Reconstruction Act, classified by domicile

(Millions of yen, %)


		Sep. 30, 2023			Mar. 31, 2023
		(a)	Reserve Ratio	(a) - (b)	(b)
Overseas Offices and Japan offshore banking accounts		213,630	66.6	(29,016)	242,646
	Asia	101,514	69.2	(53,671)	155,185
	Oceania	-	-	(1,756)	1,756
	North America	54,270	57.3	890	53,380
	Central and South America	21,856	-	17,109	4,747
	Western Europe	20,652	86.2	6,839	13,813
	Eastern Europe	-	-	-	-
	Others	15,336	61.1	1,573	13,763

- 13 -

Sumitomo Mitsui Financial Group

14. Balance of deposits and loans

SMBC non-consolidated

(1) Average balance of deposits and loans


					(Millions of yen)
			Six months ended		Six months ended
			Sep. 30, 2023 (a)	(a) - (b)	Sep. 30, 2022 (b)

Deposits			152,632,649	6,273,622	146,359,027

	Domestic units		119,729,734	4,342,738	115,386,996


Loans			95,537,754	1,890,154	93,647,600

	Domestic units		56,823,578	3,027,528	53,796,050
Note: Deposits do not include negotiable certificates of deposit. (2) Balance of deposits and loans, classified by type of depositor
					(Millions of yen)
			Sep. 30, 2023		Mar. 31, 2023
			(a)	(a) - (b)	(b)

Deposits			151,884,588	1,935,708	149,948,880
	Domestic deposits (excluding Japan offshore banking accounts)		123,311,844	339,609	122,972,235

		Individuals	58,936,145	1,049,108	57,887,037

		Corporates	64,375,699	(709,499)	65,085,198


Loans			97,245,699	2,938,302	94,307,397
	Domestic offices (excluding Japan offshore banking accounts)		61,643,700	556,238	61,087,462

	Overseas offices and Japan offshore banking accounts		35,601,998	2,382,063	33,219,935
Note: Deposits do not include negotiable certificates of deposit. Reference:
					(Billions of yen)
			Sep. 30, 2023		Mar. 31, 2023
			(a)	(a) - (b)	(b)

Balance of investment trusts			3,957.1	436.2	3,520.9

	Balance to individuals		3,218.8	337.6	2,881.2
Note: Balance of investment trusts is recognized on a contract basis and measured according to each fund’s net asset balance at the period-end.
					(Billions of yen)
			Six months ended		Six months ended
			Sep. 30, 2023 (a)	(a) - (b)	Sep. 30, 2022 (b)
Sales of investment trusts to individuals			360.6	(6.5)	367.1

Sales of pension-type insurance to individuals			53.7	(21.7)	75.4

- 14 -

Sumitomo Mitsui Financial Group

15. Deferred tax assets and liabilities


							(Billions of yen)

SMBC non-consolidated					Sep. 30, 2023	Change from Mar. 31, 2023	Mar. 31, 2023
(a)	Total deferred tax assets		(b-c)	1	377.7	58.3	319.4
	(b)	Subtotal of deferred tax assets		2	476.2	36.3	439.9
		Reserve for possible loan losses and write-off of loans		3	206.4	7.1	199.3
		Taxable write-off of securities		4	89.9	(26.1)	116.0
		Others		5	179.9	55.3	124.6
	(c) Valuation allowance			6	98.5	(22.0)	120.5
(d) Total deferred tax liabilities				7	557.0	87.4	469.6
	Net unrealized gains on other securities			8	456.9	68.7	388.2
	Others			9	100.1	18.7	81.4

Net deferred tax assets			(a-d)	10	(179.3)	(29.1)	(150.2)
	Amount corresponding to net deferred losses on hedges included in line 5 and net unrealized gains on other securities included in line 8			11	(421.7)	(52.7)	(369.0)
	Others			12	242.4	23.6	218.8

SMBC recognized deferred tax assets pursuant to paragraph 19 (classification 2) of the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26). This is due to the fact that SMBC has generated steady taxable income, excluding amounts arising from extraordinary factors, in all of the current and past three fiscal years.

Reference: Income of final tax return before deducting operating loss carryforwards for the last 3 years

(Billions of yen)

FY3/2021

FY3/2022

FY3/2023

1H, FY3/2024

Income of final tax return

before deducting operating loss carryforwards

546.5

655.5

621.2

411.7

Note: The figure for 1H, FY3/2024 was estimated in interim closing.

- 15 -

Sumitomo Mitsui Financial Group

16. Capital ratio (BIS guidelines)

(Basel III basis)


Consolidated		(Billions of yen, %)
	Sep. 30, 2023 [Preliminary]		Mar. 31, 2023
	(a)	(a) - (b)	(b)

(1) Total capital ratio (4) / (7)	16.22	0.24	15.98

(2) Tier 1 capital ratio (5) / (7)	15.20	0.26	14.94

(3) Common equity Tier 1 capital ratio (6) / (7)	13.94	(0.08)	14.02

(4) Total capital	13,312.8	962.1	12,350.8

(5) Tier 1 capital	12,470.6	921.7	11,548.9

(6) Common equity Tier 1 capital	11,438.7	599.7	10,839.0

(7) Risk weighted assets	82,041.0	4,755.9	77,285.0

(8) Required capital (7) X 8%	6,563.3	380.5	6,182.8

(9) Leverage Ratio	4.93	(0.10)	5.03

SMBC consolidated

(1) Total capital ratio	15.48	0.14	15.34

(2) Tier 1 capital ratio	14.27	0.12	14.15

(3) Common equity Tier 1 capital ratio	12.20	(0.23)	12.43

(4) Leverage Ratio	4.66	(0.03)	4.69

SMBC non-consolidated

(1) Total capital ratio	13.54	(0.43)	13.97

(2) Tier 1 capital ratio	12.15	(0.48)	12.63

(3) Common equity Tier 1 capital ratio	9.96	(0.85)	10.81

(4) Leverage Ratio	4.11	(0.16)	4.27

17. ROE
Consolidated			(%)
	Six months ended Sep. 30, 2023		Six months ended Sep. 30, 2022
	(a)	(a) - (b)	(b)

ROE (denominator: Total stockholders’ equity)	10.0	(0.3)	10.3

Note:


ROE (denominator: Total stockholders’ equity)	=	(Profit attributable to owners of parent) x (Number of days in a year (365 days)) / (Number of days in the period (183 days))	X 100
		{(Total stockholders’ equity at the beginning of the period) + (Total stockholders’ equity at the end of the period)} / 2

- 16 -

Sumitomo Mitsui Financial Group

18. Earnings targets and dividends forecast for FY3/2024

(1) Earnings targets


Consolidated		(Billions of yen)
	FY3/2024	FY3/2023 Result
Consolidated net business profit	1,400.0	1,276.4
Total credit cost	(230.0)	(210.2)
Ordinary profit	1,320.0	1,160.9
Profit attributable to owners of parent	920.0	805.8

SMBC non-consolidated		(Billions of yen)
	FY3/2024	FY3/2023 Result
Banking profit (before provision for general reserve for possible loan losses)	765.0	815.9
Total credit cost	(85.0)	(115.5)
Ordinary profit	875.0	865.8
Net income	640.0	634.2

(2) Dividends forecast
			(Yen)
	FY3/2024		FY3/2023
			FY3/2023
	Interim	Annual	Result
Dividend per share for common stock	135	270	240
Reference:			(Billions of yen)
	FY3/2024		FY3/2023
			FY3/2023
	Interim	Annual	Result
Total dividend	180.1	357.5	325.8

- 17 -

Sumitomo Mitsui Financial Group

Reference: Financial Statements of SMBC

1. Condensed balance sheet

SMBC non-consolidated


						(Millions of yen)
	Sep. 30, 2023				Mar. 31, 2023
	(a)		(a) - (b)		(b)

Assets

Cash and due from banks		72,333,503		1,514,802		70,818,701

Call loans		5,081,455		(204,383)		5,285,838

Receivables under resale agreements		1,405,902		(31,693)		1,437,595

Receivables under securities borrowing transactions		2,270,459		672,335		1,598,124

Monetary claims bought		2,086,284		141,993		1,944,291

Trading assets		3,213,870		833,940		2,379,930

Securities		38,652,169		6,441,775		32,210,394

Loans and bills discounted		97,245,699		2,938,302		94,307,397

Foreign exchanges		2,087,527		263,163		1,824,364

Other assets		10,740,746		3,611,459		7,129,287

Tangible fixed assets		744,147		6,894		737,253

Intangible fixed assets		304,234		18,248		285,986

Prepaid pension cost		529,174		32,846		496,328

Customers’ liabilities for acceptances and guarantees		15,919,261		513,405		15,405,856

Reserve for possible loan losses		(473,334)		50,554		(523,888)

Total assets		252,141,100		16,803,636		235,337,464

Note: Amounts less than 1 million yen are rounded down.

- 18 -

Sumitomo Mitsui Financial Group

(Millions of yen)


	Sep. 30, 2023						Mar. 31, 2023
	(a)			(a) - (b)			(b)

Liabilities

Deposits		151,884,588			1,935,708			149,948,880

Negotiable certificates of deposit		13,833,675			903,851			12,929,824

Call money		840,051			65,083			774,968

Payables under repurchase agreements		16,936,557			4,895,190			12,041,367

Payables under securities lending transactions		224,194			(146,320	)		370,514

Commercial paper		1,113,130			(179,068	)		1,292,198

Trading liabilities		2,084,002			440,789			1,643,213

Borrowed money		24,433,936			2,528,674			21,905,262

Foreign exchanges		2,317,510			801,350			1,516,160

Bonds		541,932			(99,478	)		641,410

Due to trust account		1,971,708			(305,338	)		2,277,046

Other liabilities		12,241,462			5,249,715			6,991,747

Reserve for employee bonuses		11,776			(1,766	)		13,542

Reserve for executive bonuses		-			(1,202	)		1,202

Reserve for point service program		1,417			277			1,140

Reserve for reimbursement of deposits		7,838			(2,160	)		9,998

Deferred tax liabilities		179,285			29,062			150,223

Deferred tax liabilities for land revaluation		27,945			(7	)		27,952

Acceptances and guarantees		15,919,261			513,405			15,405,856

Total liabilities		244,570,275			16,627,767			227,942,508

Net assets

Capital stock		1,770,996			-			1,770,996

Capital surplus		1,774,554			-			1,774,554

Capital reserve		1,771,043			-			1,771,043

Other capital surplus		3,510			-			3,510

Retained earnings		3,551,104			274,189			3,276,915

Other retained earnings		3,551,104			274,189			3,276,915

Voluntary reserve for retirement allowances		1,656			-			1,656

Voluntary reserve		219,845			-			219,845

Retained earnings brought forward		3,329,602			274,189			3,055,413

Treasury stock		(210,003	)		-			(210,003	)

Total stockholders’ equity		6,886,652			274,189			6,612,463

Net unrealized gains (losses) on other securities		1,117,062			76,590			1,040,472

Net deferred gains (losses) on hedges		(457,739	)		(174,946	)		(282,793	)

Land revaluation excess		24,849			36			24,813

Total valuation and translation adjustments		684,172			(98,320	)		782,492

Total net assets		7,570,824			175,869			7,394,955

Total liabilities and net assets		252,141,100			16,803,636			235,337,464

Note: Amounts less than 1 million yen are rounded down.

- 19 -

Sumitomo Mitsui Financial Group

2. Condensed income statement

SMBC non-consolidated


				(Millions of yen)


	Six months ended Sep. 30, 2023 (a)		Six months ended Sep. 30, 2022 (b)
	Six months ended Sep. 30, 2023 (a)	(a) - (b)	Six months ended Sep. 30, 2022 (b)
Ordinary income	3,080,805	1,048,096	2,032,709

Interest income	2,288,419	1,099,202	1,189,217

Interest on loans and discounts	1,347,917	593,100	754,817

Interest and dividends on securities	264,150	37,827	226,323

Trust fees	1,422	361	1,061

Fees and commissions	339,748	21,821	317,927

Trading income	3,740	(4,452)	8,192

Other operating income	343,534	(43,868)	387,402

Other income	103,940	(24,967)	128,907
Ordinary expenses	2,629,767	1,138,444	1,491,323

Interest expenses	1,760,670	1,182,943	577,727

Interest on deposits	663,619	492,614	171,005

Fees and commissions payments	108,227	12,414	95,813

Trading losses	185,471	(19,665)	205,136

Other operating expenses	27,065	(69,837)	96,902

General and administrative expenses	471,740	41,070	430,670

Other expenses	76,592	(8,480)	85,072

Ordinary profit	451,037	(90,349)	541,386

Extraordinary gains	44	(308)	352

Extraordinary losses	1,674	950	724

Income before income taxes	449,407	(91,607)	541,014

Income taxes - current	127,584	(2,235)	129,819

Income taxes - deferred	(23,907)	(35,346)	11,439

Total income taxes	103,677	(37,581)	141,258

Net income	345,730	(54,025)	399,755

Note: Amounts less than 1 million yen are rounded down.

- 20 -

Sumitomo Mitsui Financial Group

3. Statement of changes in net assets

SMBC non-consolidated


Six months ended September 30, 2023																				(Millions of yen)
			Capital surplus					Retained earnings
								Other retained earnings
	Capital stock		Capital reserve			Other capital surplus		Voluntary reserve for retirement allowances			Voluntary reserve			Retained earnings brought forward			Treasury stock			Total stockholders’ equity
Balance at the beginning of the period		1,770,996		1,771,043			3,510		1,656			219,845			3,055,413			(210,003	)	6,612,463

Changes in the period

Cash dividends															(71,505	)				(71,505)

Net income															345,730					345,730

Reversal of land revaluation excess															(35	)				(35)
Net changes in items other than stockholders’ equity in the period

Net changes in the period															274,189					274,189

Balance at the end of the period		1,770,996		1,771,043			3,510		1,656			219,845			3,329,602			(210,003	)	6,886,652

												(Millions of yen	)
	Valuation and translation adjustments
	Net unrealized gains (losses) on other securities		Net deferred gains (losses) on hedges			Land revaluation excess		Total valuation and translation adjustments			Total net assets
Balance at the beginning of the period		1,040,472		(282,793	)		24,813		782,492			7,394,955

Changes in the period

Cash dividends												(71,505	)

Net income												345,730

Reversal of land revaluation excess												(35	)
Net changes in items other than stockholders’ equity in the period		76,590		(174,946	)		35		(98,320	)		(98,320	)

Net changes in the period		76,590		(174,946	)		35		(98,320	)		175,869
Balance at the end of the period		1,117,062		(457,739	)		24,849		684,172			7,570,824