SMBC Group's Financial and Credit Portfolio slide image

SMBC Group's Financial and Credit Portfolio

Application of Basel III (capital ratio)*1 Mar. 24 Mar. 25 Mar. 26 Mar. 27 Mar. 28 Mar. 29 Revised standardized approach and internal ratings- based framework for credit Revised credit valuation adjustment (CVA) framework Implement RWA Revised operational risk framework Output floor Capital requirements Total capital ratio 72.5% 70% 65% 60% 55% 50% Implementation of output floor A: RWA based on internal ratings-based approach (IRB) B: RWA based on standardized approach (SA) Tier 1 ratio A > B x capital floor RWA = A CET1 ratio Capital conservation buffer*2 Common Equity Tier 1 Additional (CET1) Tier 2 B x capital floor Tier 1 A: IRB B: SA 2.5% 4.5% 1.5% 2.0% 10.5% A ≤ B x capital floor RWA = B x capital floor + G-SIB surcharge (CET1 capital) Bucket 1 Bucket 2 Bucket 3 1.0% Bucket 4 Bucket 5 1.5% 2.0% 2.5% 3.5% A: IRB *1 FSA announced that it will postpone the implementation of unimplemented Basel III standards until Mar. 24 for internationally active backs and bank holding companies including SMFG *2 Countercyclical buffer (CCYB) omitted B x capital floor B: SA Copyright © 2023 Sumitomo Mitsui Financial Group. All Rights Reserved. 79
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