SMBC Group's Financial and Credit Portfolio slide image

SMBC Group's Financial and Credit Portfolio

1H FY3/24 financial results 1H YOY (JPY bn) FY3/24 1 Consolidated gross profit 1,817.3 +185.0 G&A expenses 1,082.2 +119.6 2 Overhead ratio 59.5% +0.5% 3 Equity in gains (losses) of affiliates 35.8 (16.3) 4 Consolidated net business profit 770.9 +49.0 5 Total credit cost 100.3 +17.2 6 Gains (losses) on stocks 46.8 (45.3) 7 Other income (expenses) (8.2) (3.4) 8 Ordinary profit 709.2 (16.8) 9 Extraordinary gains (losses) (2.8) (1.4) 10 Income taxes 177.7 (16.0) 11 Profit attributable to owners of parent 526.5 +1.0 12 ROE incl. OCI*1 8.0% (0.5)% 13 ROE*2 10.0% (0.3)% *1 Denominator: Shareholder's equity + total accumulated other comprehensive income *2 Based on shareholder's equity *3 Bank of East Asia Consolidated gross profit increased YoY due to 1) recovery of SMBC Nikko, 2) strong performance of payment business, and 3) increase of income on loans, both domestic and overseas. Impact of FX: +21 G&A expenses increased YoY mainly due to 1) inflation: +25 2) higher variable marketing cost of SMCC: +25, which is successfully increasing new customers. Impact of FX: +14 Equity in gains of affiliates decreased YoY due to absence of gains on change in equity of BEA*³: (20) Impact of FX: +1 Total credit cost increased due to domestic consumer finance business: +24 but managed to keep it lower than forecast Gains on stocks decreased due to 1) impairment of overseas investment: (29) 2) gains on sales of equity holdings: 61, YoY (7), while ETF sales increased :+7) Copyright © 2023 Sumitomo Mitsui Financial Group. All Rights Reserved. 7
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