SMBC Group's Financial and Credit Portfolio
Comparison of AT1 securities features
Going
concern
SMFG JPY AT1
U.K.
EU
CET1
5.125%
Trigger
Switzerland
Australia
U.S.
7%*1
5.125%/7%
8%
High: 7%
Low: 5.125%
5.125%
N/A
Loss
absorption
mechanism
Temporary write-
down (TWD)
Conversion
TWD or
conversion
Write-down or
conversion
Conversion
N/A
Gone concern
PONV mechanism & trigger
Public capital injection
constitutes PONV
or triggers going concern
loss absorption
Contractual *2
(Specified Item 2
Statutory
*3
Statutory
*3
Contractual Contractual
N/A
measures)
No*2
(Specified Item 1
measures, etc. won't
trigger PoNV or TWD)
Yes
Yes
Yes
Yes
N/A
Dividend stopper
Yes*4
No
No
Yes
Yes
Yes
*1 Some institutions define the 7% trigger as a contractual base to include AT1 securities in their leverage ratio calculations
*2 PONV will be triggered when the Prime Minister of Japan confirms that Specified Item 2 measures needs to be applied to us if
and when our liabilities exceed or are likely to exceed our assets, or we have suspended or are likely to suspend payment of
our obligations. However, (1) liquidity support and capital injection under Specified Item 1 measures, (2) capital injection
under Act on Special Measures for Strengthening Financial Functions and (3) capital injection under Item 1 Measures could
be applied before PoNV when the Prime Minister of Japan deems these measures appropriate. Measures to be taken depend
on each case. Specified Item 2 measures may be taken without the implementation of a capital injection prior to PONV
*3 Contractual bail-in clause for effectiveness or statutory loss absorption if the AT1 is governed by foreign law
*4 If SMFG is unable to pay interest on its AT1 Notes, either voluntarily or due to restrictions on the distributable amount, SMFG
shall not resolve at the meeting of its Board of Directors to pay cash dividends on its common stock and shall not propose Copyright © 2023 Sumitomo Mitsui Financial Group.
that cash dividends be paid to common stockholders in its shareholder's meeting
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