SMBC Group's Financial and Credit Portfolio
Capital
Capital ratio
Transitional basis
Capital strategy
AT1
capital
Tier 2
| Additional Tier 1 (AT1)
Result
Tier 2
capital
Common Equity Tier 1 (CET1)
16.22%
15.20%
Requirement
13.94%
11.66%
CET1
Target*1
Total Capital ratio
Tier 1 ratio
CET1 ratio
9.66%
8.16%
o/w
buffer*2
3.66%
10%
CET1
capital
JPY 0.8 tn
(1.03%)
(as of Sep. 23)
JPY 1.0 tn
(1.26%)
(as of Sep. 23)
Plan to fill 2.0% Tier 2 bucket in
the medium term, taking account
of RWA growth and AT1 capital
accumulation
Plan to continue issuing AT1
bonds to fill 1.5% AT1 bucket
CET1 ratio target (Finalized Basel III basis excl.
net unrealized gains) : 10%
• CET1 capital ratio remains target level
SMFG's recent deals (subordinated bonds)
Total capital
Tier 1 capital
o/w CET1 capital
Tier 2 capital
Risk-weighted assets
(JPY bn)
Sep. 23
Security type
AT1
AT1
Tier 2 (USD)
Issue date
Apr. 25, 2023
Amount
JPY 89bn
Tenor
Coupon
PerpNC5
1.879%
AT1
13,312.8
AT1
Tier 2
12,470.6
Tier 2
Apr. 25, 2023
Jul. 13, 2023
Sep. 15, 2023
Sep. 15, 2023
Oct. 30, 2023
Oct. 30, 2023
JPY 51bn
USD 1bn
JPY 114.5bn
JPY 96.5bn
JPY 85bn
JPY 45bn
PerpNC10
2.180%
20y
6.184%
PerpNC5
1.889%
PerpNC10
10NC5
2.292%
1.276%
10y
1.758%
11,438.7
842.2
82,040.9
Japan's three megabanks issued JPY 1.09 tn of yen-
denominated AT1 bonds this fiscal year in total
Most of the outstanding AT1 bonds are issued in JPY
✓ MUFG's USD AT1 bonds issued in Oct. 23 is the first
foreign currency AT1 deal in Japan
*1 CET1 ratio that (a) includes the impact of RWA inflation expected post the Basel III reforms and (b) is calculated with CET1
excluding net unrealized gains on other securities and RWA excluding RWA associated with net unrealized gains on stocks
*2 Including Capital conservation buffer (2.50%), G-SIB surcharge (1.00%) and countercyclical buffer (0.16%)
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