SMBC Group's Financial and Credit Portfolio
Actions before incurring losses at PoNV
We will be required to meet various capital requirements before reaching a point of non-viability ("PoNV").
CET1 ratio
13.94%*1
(excl. Net
unrealized
gains on
other
securities:
12.5%)
CET1 ratio
(Transitional
basis)
8.16%
5.125%
4.5%
Capital requirement*2
Countercyclical buffer
(0.16%)
G-SIB buffer [Bucket 1]
(1.0%)
Capital conservation
buffer
(2.5%)
Minimum CET1
requirement
(4.5%)
Actions
Capital remediation plan to be required
Capital distribution to be limited (including
dividend on and buy-back/redemption of
common equity and AT1 instruments)
CET1 can be generated by write-down
of AT1 instruments
(Our yen-denominated AT1 bonds come
with a principal write-up clause)
Prompt corrective action to be implemented
Pre-determined
recovery plan to
be implemented
at certain trigger
level
*1 As of the end of Sep. 23
0%.
PONV *2- suspension of payment or having negative net worth
(including the likelihood thereof)
*2 PONV will be deemed to have been reached when the Prime Minister of Japan, following deliberation by Japan's Financial
Crisis Response Council pursuant to the Deposit Insurance Act ("DIA"), confirms (nintei) that "specified Item 2 measures
(tokutei dai nigo sochi)", which are the measures set forth in Article 126-2, Paragraph 1, Item 2 of the DIA, as then in effect,
need to be applied to a financial institution if and when its liabilities exceed or are likely to exceed its assets, or it has
suspended or is likely to suspend payment of its obligations
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