IR Information

Strengths and Challenges

Challenges

High profitability & efficiency Case 1 Case 2 Limited downside risks Case 1 Case 2 Case 3 Case 4 Case 5

(Case 5) Payment & settlement services, Consumer finance


We expect that domestic credit card market is continuously expanding, centered on credit card utilization in shopping. We have established two-company system consisting of Sumitomo Mitsui Card and Cedyna, which was formed in April 2009 and, we made Cedyna as a consolidated subsidiary through fully subscribing its third-party allotment in May 2010, in order to further clarify the positioning as a core business entity in credit card business.

Going forward, we will accelerate our initiatives toward becoming a "number one credit card business entity in Japan" by realizing

  • - top-line synergy through integration of expertises, customer bases and networks
  • - cost synergy by leveraging enlarged business base of our whole group.

Meanwhile, consumer finance market is expected to be contracted further, due mainly to the cut of ceiling on loan interest rates and the introduction of an upper limit on aggregate borrowings implemented in June 2010. Nevertheless, we believe sound borrowing needs from consumers still remain in the so-called "middle-risk middle-return market segment." In addition to the cooperative business with Promise which we have been promoting so far, SMBC and ORIX reached an agreement on a joint business development of ORIX Credit in May 2009. In accordance with the agreement, we acquired from ORIX a 51% stake of ORIX Credit and ORIX Credit became a consolidated subsidiary in July 2009.

Going forward, we aim to enhance our market presence in the changing consumer finance market by expanding market shares as well as improving business efficiency, and continue to respond to customers' sound borrowing needs in line with their lifestyle.


<Reference 1> Organizational structure to promote credit card business

Organizational structure to promote credit card business
  • *1Total voting rights held by our group

<Reference 2> Balance of consumer finance *2

Balance of consumer finance
  • *2Excluding balance of QUOQ
  • *3Including loans which At-Loan provided before collaboration. At-Loan merged with Promise in Apr, 2011
  • *4Consolidated in Jul. 2009



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