News Releases
Revision of Consolidated Earnings Forecasts for the Fiscal Year ended March 31, 2006(1/1)
Sumitomo Mitsui Financial Group, Inc.
Revision of Consolidated Earnings Forecasts for the Fiscal Year ended March 31, 2006
TOKYO, April 28, 2006 --- Sumitomo Mitsui Financial Group, Inc. (SMFG) today announced a revision of its consolidated earnings forecasts for the fiscal year ended March 31, 2006.
SMFG hereby revises the earnings forecasts for the fiscal year ended March 31, 2006 as follows mainly due to an increase in banking profit (before provision for general reserve for possible loan losses) and a decrease in total credit cost of Sumitomo Mitsui Banking Corporation (SMBC), a consolidated subsidiary of SMFG.
SMFG’s non-consolidated earnings and dividends forecasts remain unchanged.
Revision of consolidated earnings forecasts for the fiscal year ended March 31, 2006
| (Billions of yen) | |||
| Ordinary income |
Ordinary profit | Net income | |
| Previous forecast (*)(A) | 3,500
|
850 | 550 |
| Revised forecast(B) | 3,680 |
970 |
690 |
| Change(B － A) | + 180 |
+ 120 | + 140 |
| Percentage change(%) | + 5.1 | + 14.1 | + 25.5 |
(*) Announced in November 2005
Appendix
I. SMBC’s earnings forecasts for the fiscal year ended March 31, 2006 (Non-consolidated)
(Billions of yen)
| Revised forecast (a) |
Previous forecast (b) |
Change (a) － (b) |
|
| Banking profit (before provision for general reserve for possible loan losses) |
970 |
720 |
520 |
| Ordinary profit | 950 |
660 |
430 |
| Net income | + 20 |
+ 60 | + 90 |
| Total credit cost | (230)
|
(300) |
+ 70 | |
|---|---|---|---|---|
| Gains on collection of written-off claims (Extraordinary gains) |
30
|
－ |
+ 30 | |
(Points)
1. Banking profit (before provision for general reserve for possible loan losses)
SMBC expects banking profit (before provision for general reserve for possible loan losses) to be 970 billion yen, an increase of 20 billion yen compared with the previous forecast. This is mainly due to an increase in fees and commissions from sales of investment trusts.
2. Total credit cost
Total credit cost is expected to be 230 billion yen, a decrease of 70 billion yen compared with the previous forecast. This is mainly due to gains on reversal of off-balancing related costs in the process of work-out of non-performing loans. Approximately 30 billion yen of gains on collection of the claims written-off in past fiscal years are expected to be recorded as extraordinary gains.
II. Estimate of problem assets based on the Financial Reconstruction Law (SMBC, Non-consolidated)
(Billions of yen)
| March 31, 2006 (Estimate) (a) |
March 31, 2005 (Result) (b) |
Change (a) － (b) |
||
| Problem assets based on the Financial Reconstruction Law |
960.0 |
1,824.6 |
(864.6) | |
| Problem asset ratio | 1.7 % |
3.3% |
(1.6) % | |
III. Estimate of net unrealized gains (losses) on other securities (SMBC, Non-consolidated)
(Billions of yen)
| March 31, 2006 (Estimate) (a) |
March 31, 2005 (Result) (b) |
Change (a) － (b) |
||
| Problem assets based on the Financial Reconstruction Law |
1,310.0 |
651.6 |
+ 658.4 | |
| Stocks Bonds Others |
1,630.0 |
667.3 7.7 (23.4) |
+ 962.7 (287.7) (16.6) |
|
VI. Estimate of capital ratio (SMFG, Consolidated)
March 31, 2006 (Estimate) |
March 31, 2005(Result) | |
| Consolidated capital ratio | More than 12 % |
9.94 % |
 |
|---|
