FAQ

Financial Results
for Fiscal 2009 ended March 31, 2010

For overview of the financial results, please refer to the announcement.

Financial Results

Q1.: Please explain the difference in Ordinary profit and Net income between SMFG consolidated basis and SMBC non-consolidated basis for FY3/2010.
Q2.: What was the reason for an increase in BIS Capital ratio and Tier I ratio?

Q3.: Please explain SMFG's consolidated Net income forecast for FY3/2011 with regard to changes from the results in FY3/2010.
Q4.: Please explain economic assumptions of Earnings forecast for FY3/2011 such as interest rate and exchange rate.

Q1.: Please explain the difference in Ordinary profit and Net income between SMFG consolidated basis and SMBC non-consolidated basis for FY3/2010.

A1.: With regard to Ordinary profit, the difference between SMFG consolidated basis and SMBC non-consolidated basis was JPY 96.1 billion, a JPY 86.9 billion increase year over year.
With regard to Net income, the difference was loss of JPY46.4 billion, improved by JPY25.9 billion year over year. The loss is mainly due to (a) Kansai Urban Banking Corporation, a consolidated subsidiary of SMFG, recorded Net loss led by an increase in Total credit cost, and (b) Cedyna Financial Corporation, an equity-method affiliate of SMFG, recorded Net loss led by an increase in the allowance for losses on interest refunds.

Q2.: What was the reason for an increase in BIS Capital ratio and Tier I ratio?

A2.: SMFG's Total capital increased by JPY2,080 billion through common equity offerings, accumulation of earnings and so on, while SMFG's consolidated Risk-adjusted assets increased by JPY1,400 billion year over year through implementation of strategic initiatives for fortifying targeted growth business areas, such as making Nikko Cordial Securities as a wholly-owned subsidiary of SMBC. As a result, the preliminary figure on the consolidated Capital ratio increased by 3.55% year over year to 15.02% and consolidated Tier I ratio increased by 2.93% year over year to 11.15% as of March 31, 2010, respectively.

Q3.: Please explain SMFG's consolidated Net income forecast for FY3/2011 with regard to changes from the results in FY3/2010.

A3.: SMFG's consolidated Net income for FY3/2011 is forecasted to increase by JPY68.4 billion year over year to JPY340 billion. This is mainly because we forecast improvement of difference in Net income between SMFG consolidated basis and SMBC non-consolidated basis by approximately JPY56.0 billion year over year, including (a) contribution from Nikko Cordial Securities, and (b) steady recovery of business results of Kansai Urban Banking Corporation and Cedyna Financial, even though we have conservative forecast for possible losses from some subsidiaries or affiliates such as Promise Co.,Ltd. In addition, SMBC's non-consolidated Net income is forecasted to increase by JPY12.0 billion year over year.

Q4.: Please explain economic assumptions of Earnings forecast for FY3/2011 such as interest rate and exchange rate.

A4.: We assume that interest rate both in Japanese yen and in U.S. dollar will be unchanged from March 31, 2010, and exchange rate of Japanese yen to U.S. dollar to be JPY 90 to USD 1. We also assume the BOJ's policy interest rate will be unchanged throughout FY3/2011.

A5.: With regard to claims to borrowers whose domiciles are in Portugal, Italy, Ireland, Greece and Spain on SMFG's consolidated basis, the amount as of March 31, 2010 was approximately JPY 300 billion in total, mostly consisted of claims to large corporations and project finance. Particularly, with regard to claims to borrowers in Greece, we don't expect substantial impact as the amount is small and mostly secured. We don't hold government bonds of all these countries.