Fixed Income Investor PresentationFinancial results of FY3/2013 and 1Q, FY3/2014 (JPY bn) FY3/2012...

Sumitomo Mitsui Banking Corporation

Fixed Income Investor PresentationSeptember 2013

The financial figures for SMFG and SMBC included in this presentation are prepared in accordance with generally accepted accounting principles in Japan, or Japanese GAAP

1

Disclaimer

This presentation is being provided to you for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without the prior written consent of Sumitomo Mitsui Banking Corporation (“SMBC”). All information included in this presentation speaks as of the date of this presentation (or earlier, if so indicated) and is subject to change without notice. This presentation is based on information provided by SMBC and publicly available sources. Neither SMBC nor its affiliates make any representation or warranty, express or implied as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any of the information or opinions in this presentation. The information contained herein does not constitute an offer or solicitation of securities for sale in the United States or anywhere else. Securities may not be offered or sold in the United States unless they are registered under applicable law or exempt from registration. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.This presentation contains “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of SMBC and its management with respect to Sumitomo Mitsui Financial Group, Inc.’s and SMBC’s financial condition and results of operations. In many cases but not all, these statements contain words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “probability”, “risk”, “project”, “should”, “seek”, “target” and similar expressions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward-looking statements contained or deemed to be contained herein as a result of various factors, such as any deterioration in Japanese and global economic conditions and financial markets; future declines in securities prices on Japanese stock markets or other global markets; failure to satisfy capital adequacy requirements; incurrence of significant credit-related costs; a significant downgrade of our credit ratings; failure to achieve the goals of our business strategy; exposure to new risks as SMBC expands the scope of its business; the success of SMBC's business strategies and alliances; reduction of recoverability of certain tax deferred assets; failure of SMBC's information technology systems; financial difficulties of counterparties and other financial institutions; regulatory sanctions; insufficient liquidity; changes in laws and regulations affecting SMBC's business; and SMBC's ability to maintain competitiveness. SMBC undertakes no obligation to update or revise any forward-looking statements.

2

SMFG / SMBC overview*1

(As of Mar. 31, 2013)(Non-consolidated)

SMBC’s business franchise SMBC’s profitability

FY3/13 Core operating entity within the SMFG franchise

Heritage dating back more than 400 years

27 million retail customer deposit accounts

103 thousand domestic corporate loan clients

439 domestic branches

60+ overseas franchises*3

Ratings (Moody’s / S&P)*4 Aa3 / A+(As of Mar. 31, 2013, and as of Aug. 31, 2013 for the ratings)

SMFG is one of the three largest banking groups in Japan with an established global presence

Designated as one of the G-SIBs

(As of Aug. 30, 2013 for market capitalization and as of Mar. 31, 2013 for the others)

SMFG (Sumitomo Mitsui Financial Group)

*1 Exchange rate as of Mar. 29, 2013; USD 1.00=JPY 94.01, except for market capitalization, where exchange rate as of Aug 30, 2013; USD 1.00=JPY 98.33 was applied*2 Total balance of bonds with maturities classified as “Other securities” and bonds of held-to-maturity; total of Japanese government bonds, Japanese local government bonds and Japanese corporate

bonds*3 SMBC’s branches and subsidiaries *4 SMBC’s long-term senior unsecured bond ratings*5 Before provision for general reserve for possible loan losses *6 Expenses divided by gross banking profit

(Consolidated)

Total assets JPY 149 tn / USD 1.58 tn

Tier I ratio 10.93%

Market capitalization(TSE:8316 / NYSE:SMFG) JPY 6.2 tn / USD 63 bn

(Non-consolidated)

SMBC’s asset quality and liquidity

65.0%

JPY 60 tn / USD 636 bn


JPY 126 tn / USD 1,339 bn


1.60%Non-performing loan ratio

Loan-to-deposit ratio

Loans

Deposits

Total assets

Yen bonds*2

JPY 1,540 bn / USD 16.4 bn

JPY 812 bn / USD 8.6 bn

JPY 618 bn / USD 6.6 bn

47.3%

*5

Gross banking profit

Banking profit*5

(before provisions)

Net income

Overhead ratio*6

Common Equity Tier I ratio 9.38%

3

Japan Research InstituteOther business

SMBC Nikko Securities

SMBC Friend Securities

Securities Services

SMBC Aviation Capital

40%

10%

Leasing

60%

Sumitomo Mitsui Card

Cedyna

SMBC Consumer Finance*3

100%

66%34%

Consumer FinanceSMFG Card & Credit

Sumitomo Mitsui Finance and LeasingSumitomo Corporation

NTT docomo

Sumitomo Mitsui Asset Management

Daiwa SB investments

【No. of accounts：approx. 2.4 mn】

【No. of card holders：approx. 22 mn】

【No. of existing customers：approx. 19 mn】

【No. of accounts of unsecured loans： approx. 1.4 mn】

Group structure*1

Sumitomo Mitsui Financial Group

100%

60%

30%JPY 149 tnConsolidated total assets

10.93%Consolidated Tier I ratio

*1 As of Mar. 31, 2013*2 Excluding negotiable certificates of deposits*3 Renamed to SMBC Consumer Finance from Promise on Jul. 1, 2012

100%

100%

100%

100%

44%

100%

40%

Sumitomo Mitsui Banking Corporation

Total assets JPY 126 tn

Deposits*2 JPY 80 tn

Loans JPY 60 tn

# of retail accounts 27 mn

103,000# of corporate loan clients

4

Credit ratings of G-SIBs by Moody’s*

Apr. 2001 Jul. 2007 Aug. 2013

Aaa • Bank of America• Bank of New York Mellon• Citibank• JPMorgan Chase Bank

• Royal Bank of Scotland• UBS• Wells Fargo Bank

Aa1 • Bank of America• Crédit Agricole

• Wells Fargo Bank• UBS

• Banco Santander• Barclays Bank• BBVA• BNP Paribas• Crédit Agricole• Credit Suisse

• Deutsche Bank• HSBC Bank• ING Bank• Nordea Bank• Société Générale• State Street Bank & Trust

• Bank of New York Mellon

Aa2 • Bank of New York Mellon• Barclays Bank• BBVA• Citibank• HSBC Bank

• ING Bank• JPMorgan Chase Bank• Royal Bank of Scotland• State Street Bank & Trust

• SMBC• BPCE(Banque Populaire)• BTMU

• Mizuho Bank• UniCredit

• State Street Bank & Trust

Aa3 • Banco Santander• BNP Paribas• BPCE(Banque Populaire)

• Deutsche Bank• Société Générale• UniCredit

• Goldman Sachs Bank • Morgan Stanley Bank • SMBC• BTMU• HSBC Bank

• JPMorgan Chase Bank• Nordea Bank• Wells Fargo Bank

A1 • Credit Suisse • Bank of China • Bank of China• Credit Suisse

• Mizuho Bank• Standard Chartered

A2 • BTMU • Standard Chartered • Standard Chartered • Barclays Bank• BNP Paribas• BPCE(Banque Populaire)• Crédit Agricole• Deutsche Bank

• Goldman Sachs Bank• ING Bank• Société Générale• UBS

A3 • SMBC • Mizuho Bank • Bank of America• Citibank

• Morgan Stanley Bank• Royal Bank of Scotland

Baa1 • Bank of China

Baa2 • Banco Santander• UniCredit

Baa3 • BBVA

SMBC

SMBC

SMBC

* Long-term issuer ratings (if not available, long-term deposit ratings) of operating banks

Growth International business Synergies between SMBC and SMBC Nikko

Profitability Financial results of FY3/2013 & 1Q, FY3/2014 Sources of profitability Loan balance & spread

5

Highlights

Financial soundness Capital Asset quality Liquidity Foreign currency funding

Financial results of FY3/2013 and 1Q, FY3/2014

(JPY bn)FY3/2012Results

FY3/2013Results

Apr.-Jul. 2013ResultsYOY

changeYOY

change

Gross banking profit 1,532.5 1,540.1 +7.6 428.0 +28.7

Gains (losses) on bonds 152.5 113.8 (38.7) 14.5 (64.7)

Expenses*1 (719.5) (727.7) (8.2) (185.6) (0.1)

<Overhead ratio>*2 46.9% 47.3% +0.4% 43.4% (3.5)%

Banking profit (before provisions)*3 813.0 812.4 (0.6) 242.4 +28.6

Total credit cost (58.6) (19.5) +39.1 24.9 +25.4

Gains (losses) on stocks (15.2) (35.7) (20.5) 72.2 141.5

Ordinary profit 695.3 670.9 (24.5) 314.1 +181.7

Net income 478.0 617.8 +139.8 214.8 +143.8

Ordinary profit 935.6 1,073.7 +138.2 459.3 +221.7

Net income 518.5 794.1 +275.5 288.3 +170.5

SMB

Cno

n-co

nsol

idat

ed

Ref

eren

ce:

SMFG

cons

olid

ated

*1 Excluding non-recurring losses*2 Expenses divided by gross banking profit *3 Before provision for general reserve for possible loan losses

6

30.4

19.6 21.7

0

10

20

30

40

SMBC BTMU Mizuho

Sources of profitability

(JPY mn)

Banking profit (before provisions)per employee*1,2 Domestic loan-to-deposit spread*1

*1 Based on each company’s FY3/13 disclosure. The figures shown in the graph are: the non-consolidated figures for SMBC and BTMU, and the sum of Mizuho Bank and Mizuho Corporate Bank for Mizuho

*2 Before provision for general reserve for possible loan losses, excluding gains (losses) on bonds, divided by the average number of employees (average number at the beginning and end of the period for BTMU and Mizuho)

1.49%

1.19%

1.13%

1.0%

1.2%

1.4%

1.6%

SMBC BTMU Mizuho

7

0.0%

47.2 47.6

9.2

12.2

35

40

45

50

55

60

65

Mar. 08 Mar. 09 Mar. 10 Mar. 11 Mar. 12 Mar. 13

Overseas loans

Domestic loans

G1-G3

G4-G6

G7 (excluding G7R)

Default (G7R, G8-G10)

Others

J1-J3

J4-J6

J7 (excluding J7R)

Default (J7R, J8-J10)

Japanese government, etc

Others

Loan balance & exposures

Loan balance

(SMBC non-consolidated)

56.4

(JPY tn)

Exposures by obligor grade as of Mar. 2013*1

(corporate, sovereign and bank)(SMFG consolidated)

Overseas exposures

Domestic exposures

*1 Exposures include credit to domestic and overseas commercial/industrial companies, individuals for business purposes, sovereigns, public sector entities, and financial institutions.See appendix for details on obligor grade

8

59.8

Loan spread*1

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

Sep.08

Mar.09

Sep.09

Mar.10

Sep.10

Mar.11

Sep.11

Mar.12

Sep.12

Mar.13

Large corporations (Corporate Banking Unit)

Medium-sized enterprises and SMEs (Middle Market Banking Unit)

*1 Managerial accounting basis. Average loan spread of existing loans*2 SMBC non-consolidated*3 Sum of SMBC, SMBC Europe and SMBC (China)

Domestic*2 Overseas*3

9

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

Sep.08

Mar.09

Sep.09

Mar.10

Sep.10

Mar.11

Sep.11

Mar.12

Sep.12

Mar.13



10

Highlights


International business (1) - profit and loan balanceOverseas banking profit (before provisions) and ratio*1

(JPY bn)

Overseas loan balance (USD)*2

(USD bn)

*1 Managerial accounting basis. Sum of SMBC and major overseas banking subsidiaries. Based on the medium-term management plan assumed exchange rate of USD1=JPY85 since FY3/12*2 Managerial accounting basis, exchanged at respective period-end FX rates. Sum of SMBC, SMBC Europe and SMBC (China) 11

23%

26%

30%

0%

10%

20%

30%

40%

0

50

100

150

200

250

3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13

Overseas banking profit (left axis)

Overseas banking profit ratio (right axis)

FY

30 30.739

5058

34 25

30

38

47 37

34

34

40

41

0

25

50

75

100

125

150

Mar. 09 Mar. 10 Mar. 11 Mar. 12 Mar.13

EMEA

Americas

Asia

101

90

104

128

146

International business (2) - products with a competitive advantage

SMBC was awarded as the Global Bank of the Year 2012 by Project Finance International Magazine, the leading publication of global project finance industry

Team with high expertise committed to obtainingmandates

Leverage relationships with customers and ECAs to work on transactions with both Japanese and non-Japanese sponsors

（USD mn）

*1 Source: Thomson Reuters (Mandated Arrangers)*2 Project finance: Asia Pacific, Loan syndication: Asia (excl. Japan), all international currency syndicated and club loans*3 Source: “ASIAMONEY”: Cash Management Poll (Aug. 2013)

Project finance Trade finance related profit

Cash management service

Global Asia*2 Japan

Project Finance #3 #5

Loan Syndication #7 #1 #2

League tables (Jan. – Dec. 2012)*1

Cash management service (CMS) as voted by corporations

Large corporations 5th

Medium corporations 5th

Small corporations 5th

JPY CMSas voted by financial institutions

1st

Cash management providers’ ranking (in Asia Pacific)*3

#1 among Japanese banksfor eight consecutive years

CMS in Asia

Aim to be one of

the top three global banks#1 for eight

consecutive years

0

100

200

300

400

FY3/11 FY3/12 FY3/13

EMEAAmericasAsia

12

International business (3) - our footprint in Asia

Strategic partners*2

China Bank of China

Industrial andCommercial Bank of China

Agricultural Bank of China

Korea Kookmin Bank

Taiwan First Commercial Bank

Hong Kong Bank of East Asia

Philippines Metrobank

Vietnam Vietnam Eximbank

Malaysia RHB Bank

Indonesia Bank TabunganPensiunan Nasional

Bank Central Asia

Cambodia ACLEDA Bank

India Kotak Mahindra Bank

Loan balance in Asian countries(Geographic classification based on domicile of borrowers)*1

KoreaChina

Thailand

Singapore Indonesia

TaiwanHong KongIndia

(JPY bn)

Australia

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

0200400600800

1,000

Mar.10

Mar.11

Mar.12

Mar.13

*1 Sum of SMBC, SMBC Europe and SMBC (China). Loan balances are calculated in JPY from each country’s local currency at the exchange rate as of Mar. 29, 2013*2 SMBC has an equity stake in the underlined banks 13

Leasing company Nationality No. of Aircrafts

1 GECAS US 1,742

2 ILFC US 1,033

3 BBAM US 332

SMBC AC + Sumisho Acft Asset Mgt 318

4 AerCap Netherlands 297

5 Aviation Capital Group US 270

6 CIT Aerospace US 268

7 AWAS Ireland 244

8 Boeing Capital Corp US 236

9 SMBC AC Ireland 232

10 BOC Aviation Singapore 198

23 Sumisho Aircraft Asset Management Netherlands 86

International business (4) - SMBC Aviation Capital

FY3/13 topics and future goalsFY3/13 topics and future goals Number of aircraft ranking*Number of aircraft ranking*

* As of Dec. 31, 2012 (Source: Flightglobal Insight “Aircraft Finance 2013”)

Future goals

14

SMFG Group merged the following aircraft leasing business into SMBC Aviation Capital in March 2013：

SMFL Aircraft Capital Corporation B.V. (Netherlands),SMFL Aircraft Capital Japan Co., Ltd. (Japan) and Sumisho Aircraft Asset Management B.V. (Netherlands)

Realize “One Stop Shop” structure with the three businesses in order to meet various needs of the aircraft industry and aircraft investors

Capture increasing aircraft demand by leveraging economies of scale

Build a sustainable profit structure through a “Buy and Sell” business model

FY3/13 topics

Investment overviewInvestment overview

Investment amount：As of May 10, 2013, approx. JPY 92 bn, IDR 6,500 per share

Share holding：24.26% as of May 10, 2013 held by SMBC

SMBC plans to hold 40% stake subject to the approval by regulatory authorities. BTPN will be treated as an affiliated company

Unique business model of BTPNUnique business model of BTPN

15*1 Bank Tabungan Pensiunan Nasional Tbk PT*2 Exchange rate as of May 8, 2013; IDR 1,000=JPY 10.2, USD 0.1

Focus on wealthy customers

LiabilityAsset

Loan to pension recipients

Loans to small shop owners

Deposit taking

Pension banking

Micro-financing

International business (5) - Investment in BTPN*1

Overview of BTPNOverview of BTPN

Established in 1958 to serve retired military personnel through pension banking services.

Ranked 16th by asset size and 7th by market cap. among Indonesian banks

Listing in Indonesian Stock Exchange：IDX ticker “BTPN”Market Cap. as of May 8, 2013：IDR 33,289.6 bn

(approx. JPY 326 bn)

Synergies between SMBC and SMBC Nikko

16

0

500

1,000

1,500

Apr.-Jun.12 Jul.-Sep.12 Oct.-Dec.12 Jan.-Mar.13 Apr.-Jun.13

Investment banking businessFixed income business

(JPY bn) FY3/2013 Apr.-Jun.2013 YOY

changeQOQ

change

Net operating revenue 274.7 103.2 +48.0 +3.6

SG&A expenses (200.2) (61.3) (15.5) (2.1)

Ordinary income 75.7 42.2 +32.4 +1.3

Net income*1 45.7 26.7 +22.8 (0.1)

Rank Mkt share

Global equity & equity-related (book runner, underwriting amount)*1 #4 8.4%

JPY denominated bonds(lead manager, underwriting amount)*2 #5 15.4%

Financial advisor(M&A, transaction volume)*3 #3 25.9%

Financial advisor(M&A, No. of deals)*3 #3 3.6%

(No. of referrals)

SMBC Nikko‘s consolidated financial performanceSMBC Nikko‘s consolidated financial performance

*1 Source: SMBC Nikko, based on data from Thomson Reuters. Japanese corporate related only*2 Source: SMBC Nikko. Consisting of corporate bonds, FILP agency bonds, municipality bonds,

and samurai bonds*3 Source: Thomson Reuters. Japanese corporate related only. Excluding real estate deals

Net operating revenue relating to sales of investment trusts and foreign bonds

Net operating revenue relating to sales of investment trusts and foreign bonds

Synergies between SMBC and SMBC NikkoSynergies between SMBC and SMBC Nikko League tables (Apr.-Jun. 2013, SMBC Nikko)League tables (Apr.-Jun. 2013, SMBC Nikko)

Retail Commenced banking-securities integration in May 2013

Actively refer customers between SMBC and SMBC Nikko (SMBC: 15 offices, SMBC Nikko: 10 offices)

Wholesale

0

10

20

30

40

50

Apr.-Jun.12 Jul.-Sep.12 Oct.-Dec.12 Jan.-Mar.13 Apr.-Jun.13

(JPY bn) Subscription comissions from investment trustsNet trading incomes

Productsales

(JPY bn)

Investmenttrusts 521.2 395.9 649.7 1,053.2 1,131.9

Foreignbonds 622.0 517.9 547.8 700.0 837.1



17

Highlights


Resilient capital base

Common Equity Tier I capital ratio - Basel III fully-loaded basis (pro forma)*1

7.6%

8.6%

7.7%

9.3%

11.1%

8.2%

9.9%

8.0%

8.7% 8.7% 9.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Mizuho FG SMFG RBS BAC MUFG Barclays BNP DB JPM Citi HSBC

*1 SMFG, Mizuho FG, and MUFG began phased implementation of Basel III pursuant to FSA guidelines on Mar. 31, 2013. Ratios for these banks represent the announced full implementation basis scheduled to be applied from Mar. 2019 without permitted grandfathering and as of 2013. The ratio for Mizuho FG excludes Eleventh Series Class XI Preferred Stock of JPY 340.6 bn. Ratios for SMFG and MUFG are estimates announced by each bank. For the other banks, the ratios represent full implementation basis estimates announced by each bank as of Dec. 2012. Detailed guidelines for the application of Basel III are yet to be adopted by banking regulators in the United States and the European Union

*2 According to the list published by the Financial Stability Board in Nov. 2012

Minimum requirement

7%

Minimum requirement

+G-SIBs surcharge*2

18

Bucket 1(1.0%)

Bucket 2(1.5%)

Bucket 3(2.0%)

Bucket 4(2.5%)

1.81% 1.86%

1.60%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Mar. 08 Mar. 09 Mar. 10 Mar. 11 Mar. 12 Mar. 13

Substandard loansDoubtful assetsBankrupt / quasi-bankrupt assetsNon-performing loan ratio (right axis)

19

Asset quality - solid loan portfolio

Balance of non-performing loans


1.131.18

(JPY tn)

Mar. 12 Mar. 13Coverage ratio* 89.93% 92.63%

1.09

* Ratio of the collateral, guarantees and specific and general reserves to total non-performing loans

Total credit cost

9459

20

15bp

9bp3bp

0

15

30

45

60

75

90

0

100

200

300

400

500

600

FY3/08 3/09 3/10 3/11 3/12 3/13

Total credit cost (left axis)Total credit cost / total claims (right axis)

(JPY bn)(SMBC non-consolidated)

(bp)

1.9 1.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0

5

10

15

20

25

30

35

Mar. 02 Mar. 03 Mar. 04 Mar. 05 Mar. 06 Mar. 07 Mar. 08 Mar. 09 Mar. 10 Mar. 11 Mar. 12 Mar. 13

More than 10 yearsMore than 5 years to 10 yearsMore than 1 year to 5 years1 year or lessAverage duration (right axis)

20

Asset quality - bond portfolio

Yen bond portfolio*1

Balance (JPY tn)

31.5

*2

(Years)

of which more than 1 year to 2 years JGBs comprise : JPY 5.8 tn,a decrease of JPY 2.8 tn compared to Mar.12


*1 Total balance of bonds with maturities classified as “other securities” and bonds of held-to-maturity; total of JGBs, Japanese local government bonds and Japanese corporate bonds*2 Excluding bonds of held-to-maturity, bonds for which hedge-accounting is applied, and private placement bonds. Duration of 15-year floating rate JGBs is regarded as zero. Duration at Mar. 02 is for

JGB portfolio*3 15-year floating-rate JGBs have been carried at their reasonably estimated amounts from Mar. 09

of which 15-year floating-rate JGBs comprise : approx. JPY 1.8 tn

Unrealizedgains (losses)

(JPY bn)*3104.4 95.3

28.9

21

Liquidity - supported by a sticky domestic deposit base

*2

Loan-to-deposit ratio*1

*1 Based on each company’s financial statements, as of Mar. 31, 2013 for SMBC, The Bank of Tokyo-Mitsubishi UFJ (“BTMU”) and Mizuho, and as of Dec. 31, 2012 for the others. Figures of SMBC, BTMU and Mizuho are on a non-consolidated basis. The others are on a consolidated basis

*2 Aggregate of Mizuho Bank and Mizuho Corporate Bank

61%61%

65% 67% 69% 70%74%

82%

96%

110%117%

0%

20%

40%

60%

80%

100%

120%

BTMU JPM SMBC Mizuho DB Citi HSBC BAC RBS Barclays BNP

55 68 73

82 96

10190

104

128

146

0

20

40

60

80

100

120

140

160

180

200

Mar. 09 Mar. 10 Mar. 11 Mar. 12 Mar. 13

CDs & CP (less than 3 months)CDs & CP (3 months or more)Deposits (incl. deposits from central banks)Overseas loan balance

Foreign currency funding

Overseas deposit & loan balance*1

(USD bn)

Diversification of foreign currency funding

*1 Managerial accounting basis, exchanged at respective period-end FX rates. Sum of SMBC, SMBC Europe and SMBC (China)*2 Includes senior funding only 22

USD76%

EUR7%

GBP4%

AUD13%

Capital markets funding after Apr. 2012*2

Total: USD9.6 bn

USD and EUR CP program for short-term funding Periodic benchmark bond transactions to diversify our medium-to

long term funding alternatives Non-JPY denominated senior bonds: issued to international

investors– USD denominated bonds issued via 3(a)(2) format– Also issued GBP denominated bonds this March and EUR

denominated bonds this July USD and AUD denominated senior bonds: issued to

Japanese domestic retail investors Other transactions include AUD denominated transferable

deposits: issued through our Sydney branch to international investors

70

91

106

136

178

406080

100120140160180

3 5 10

Why SUMIBK?

23

Highlights

Our periodic issuance since July 2010 provides high degree of liquidity to the bonds

The only Japanese commercial bank issuer to be included in the Barclays U.S. Aggregate Index – 3(a)(2) format gives additional comfort to the investors especially in the U.S.

Achieved stable secondary performance in the recent three issuances

– Demand from Asian investors supports secondary trading 406080

100120140160180

3 5 10

SUMIBK Secondary level (5 year Fixed) vs. Index*

Secondary trading level*

(bps) July 2013January 2013

Tenor (years)

406080

100120140160180

3 5 10

July 2012

Tenor (years) Tenor (years)

(bps) (bps)

Re-offer spread G-spread (1 month later)

SUMIBK 3(a)(2) format Credit Curve (G-spread)*

0

30

60

90

120

150

0 2 4 6 8 10

144A format 3(a)(2) format USD senior bonds issued in Jul. 2013

(bps)

* G-spread as of Aug. 26, 2013, Source: Bloomberg

( )

60

70

80

90

100

110

120

Jul.12 Jul.21 Jul.30 Aug.8 Aug.17 Aug.26

G-spread: SUMIBK2.5 (July 2013)

CDX IG 5-year

(bps)

2013

7.0

4.5

5.8

4.5

14.3

12.0

11.0

2.01.5

2.01.5

3.0

2.02.0

3.5x

3.0x

2.9x

3.0x

4.8x

6.0x

5.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Jul. 2010 Jan. 2011 Jul. 2011 Jan. 2012 Jul. 2012 Jan. 2013 Jul. 2013

Total Book Size (LHS)

Issue Size (LHS)

Orderbook / issue size (RHS)

CDX IG 5-year (RHS)

60

80

100

120

140

USD senior bonds issuance record

24

USD senior bonds overall demands Geographical breakdown of allocation

US Asia Europe and others

3(a)(2) format144A format(USD bn) (bp)

70.0%

74.3%

85.4%

76.5%

19.5%

18.2%

9.4%

15.6%

10.5%

7.6%

5.2%

7.9%

3-year

5-year

10-year

Total

0% 20% 40% 60% 80% 100%

USD senior bonds – in Jul. 2013

60.7%

47.6%

68.7%

58.3%

29.4%

41.2%

23.0%

31.8%

9.9%

11.3%

8.2%

9.9%

3-year

5-year

10-year

Total

0% 20% 40% 60% 80% 100%

USD senior bonds – after Jul. 2012*2

(FIX +FRN)

(FIX +FRN)

*1 Source: Bloomberg*2 Percentages are calculated by weighted average of amount issued of Jul. 2012, Jan. and Jul. 2013.

*1

Capital markets funding profile

25

US$120 US$150 US$120 US$150A$540 A$430

A$760

A$130 A$430A$140

A$620 A$130

US$3,500

US$3,500

US$5,000

US$2,000

US$650

US$1,400

US$3,600US$2,400

US$2,000

US$500 US$500

US$1,250

US$700

€500

€500

£250

£250

US$1,500

US$1,500

US$327

€750

€750 €331

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY3/10Issuance

3/11Issuance

3/12Issuance

3/13Issuance

3/14 YTDIssuance

3/14Maturity

3/15Maturity

3/16Maturity

3/17Maturity

3/18Maturity

3/19Maturity

3/20Maturity

3/21Maturity

3/22Maturity

3/23Maturity

3/24Maturity

Perpetual

Senior bonds to institutional investorsSenior bonds to retail investors

Subordinated bonds to institutional investors

(USD mn)

MaturityIssuance

Foreign currency bonds issued since 2010

26

Issue date Sub/Senior Format Tenor Maturity date Amount (mn) Coupon Spread* Ticker

USD denominated

Jul. 22, 2010 Senior 144A/RegS3 years Jul. 22, 2013 USD 1,000 2.15% +118bp SUMIBK 2.15 Corp5 years Jul. 22, 2015 USD 1,000 3.15% +137.5bp SUMIBK 3.15 Corp

Jan. 14, 2011 Senior 144A/RegS3 years Jan. 14, 2014 USD 650 1.95% +90bp SUMIBK 1.95 Corp5 years Jan. 14, 2016 USD 850 3.10% +103bp SUMIBK 3.1 Corp

Jul. 22, 2011 Senior 144A/RegS3 years Jul. 22, 2014 USD 400 1.90% +130bp SUMIBK 1.9 Corp (07/22/14)3 years Jul. 22, 2014 USD 500 LIBOR+0.95% LIBOR+0.95% SUMIBK Float 07/22/14 Corp5 years Jul. 22, 2016 USD 1,100 2.90% +150bp SUMIBK 2.9 Corp

Jan. 12, 2012 Senior 144A/RegS3 years Jan. 12, 2015 USD 500 1.90% +155bp SUMIBK 1.9 Corp (01/12/15) 5 years Jan. 12, 2017 USD 500 2.65% +180bp SUMIBK 2.65 Corp

10 years Jan. 12, 2022 USD 500 3.95% +200bp SUMIBK 3.95 Corp (01/12/22)Mar. 1, 2012 Sub RegS 10 years Mar. 1, 2022 USD 1,500 4.85% +285bp SUMIBK 4.85 Corp

Jul. 18, 2012 Senior 3(a)(2)3 years Jul. 18, 2015 USD 1,000 1.35% +100bp SUMIBK 1.35 Corp5 years Jul. 18, 2017 USD 1,250 1.80% +120bp SUMIBK 1.8 Corp

10 years Jul. 18, 2022 USD 750 3.20% +170bp SUMIBK 3.2 Corp

Jan. 18, 2013 Senior 3(a)(2)3 years Jan. 18, 2016 USD 750 0.90% +58bp SUMIBK 0.9 Corp5 years Jan. 18, 2018 USD 750 1.50% +77bp SUMIBK 1.5 Corp

10 years Jan. 18, 2023 USD 500 3.00% +117bp SUMIBK 3 CorpMar. 25, 2013 Senior Domestic Retail 5 years Mar. 12, 2018 USD 120 1.21% -- SUMIBK 1.21 CorpJun. 24, 2013 Senior Domestic Retail 6 years Jun. 13, 2019 USD 150 1.88% -- SUMIBK 1.88 Corp

Jul. 19, 2013 Senior 3(a)(2)

3 years Jul. 19, 2016 USD 500 1.45% +85bp SUMIBK 1.45 Corp3 years Jul. 19, 2016 USD 300 LIBOR+0.67% LIBOR+0.67% SUMIBK Float 07/19/16 Corp5 years Jul. 19, 2018 USD 500 2.50% +115bp SUMIBK 2.5 Corp

10 years Jul. 19, 2023 USD 700 3.95% +140bp SUMIBK 3.95 Corp (07/19/23)GBP denominated

Mar. 18, 2013 Senior RegS (EMTN) 3 years Mar. 18, 2016 GBP 250 LIBOR+0.55% LIBOR+0.55% SUMIBK Float 03/18/16 CorpEuro denominated

Nov. 9, 2010 Sub 144A/RegS 10 years Nov. 9, 2020 Euro 750 4.00% +130bp SUMIBK 4 CorpJul. 24, 2013 Senior RegS (EMTN) 10 years Jul. 24, 2023 Euro 500 2.75% +98bp SUMIBK 2.75 Corp

AUD denominatedMar. 16, 2010 Senior Domestic Retail 3 years Mar. 14, 2013 AUD 540 5.76% -- SUMIBK 5.76 CorpDec. 21, 2011 Senior Domestic Retail 3 years Dec. 18, 2014 AUD 430 4.28% -- SUMIBK 4.28 CorpJun. 21, 2012 Senior Domestic Retail 4 years Jun. 21, 2016 AUD 420 4.07% -- SUMIBK 4.07 CorpDec. 19, 2012 Senior Domestic Retail 4 years Dec. 19, 2016 AUD 200 3.47% -- SUMIBK 3.47 CorpMar. 25, 2013 Senior Domestic Retail 3 years Mar. 1, 2016 AUD 140 3.29% -- SUMIBK 3.29 CorpJun. 24, 2013 Senior Domestic Retail 4 years Jun. 13, 2017 AUD 130 3.45% -- SUMIBK 3.45 Corp

* Gray background bonds mean that the bonds have already redeemed.* Spread over US Treasury except for Euro denominated bonds (over Mid Swap)

50

70

90

110

130

150

170

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13

G-s

prea

d (b

ps)

SMBC bonds - secondary spread

* Source: Bloomberg, Barclays US Aggregate Financial Institutions Index 27

SUMIBK 0.9 01/18/16

Barclays US Aggregate Financial Institutions Index

SUMIBK 3 01/18/23

SUMIBK 1.5 01/18/18

CDX IG 5-year

Ａｐｐｅｎｄｉｘ

Trends in key figures, 1Q FY3/2014

29

473.0

217.3

121.3173.1

(8.0)

254.7

94.3 58.6 19.5 (24.9)

40

159

3

68

3117

23

FY3/10 FY3/11 FY3/12 FY3/13 1Q, FY3/14

1,658.11,726.31,857.7

1,690.31,571.8

1,055.51,093.51,126.3 1,182.81,100.7

1.53%1.60%1.86%1.81%1.74%

2.22%2.27%2.59%2.43%2.25%

Mar.10 Mar.11 Mar.12 Mar.13 Jun.13

Total credit cost and Total credit cost ratio*3Total credit cost and Total credit cost ratio*3

902.1

62.9161.3

586.4

370.9475.0

1,121.6 1,126.3

0

500

1,000


Stocks Bonds Others Total

*1 SMBC non-consolidated basis. Balance sheet amount *2 NPL ratio = NPLs based on the Financial Reconstruction Act (excluding normal assets) / Total claims*3 Total credit cost ratio = Total credit cost / Total claims

49.5 47.8 47.2 47.6 47.5

7.1 7.4 9.2 12.2 12.7


Overseas offices and offshore banking accountsDomestic offices (excluding offshore banking account)

Unrealized gains (losses) on other securitiesUnrealized gains (losses) on other securities

NPLs and NPL ratio*2NPLs and NPL ratio*2Loan balanceLoan balance

56.6 55.2 56.459.8 60.2 SMBC

non-consolidated

SMFGconsolidated


(SMFG consolidated)

SMBCnon-consolidated

SMFGconsolidated

Coverage ratio(Mar. 2013)

SMFG consolidated 85.84%

SMBC non-consolidated 92.63%

JGBs classified as other securities*1 JPY 23.6 tn JPY 20.7 tn JPY 11.5 tn

(JPY bn)

(JPY bn)

(JPY tn)

(JPY bn)

Current Japanese economy

30

10

11

12

13

14

Jun.12

Jul.12

Aug.12

Sep.12

Oct.12

Nov.12

Dec.12

Jan.13

Feb.13

Mar.13

Apr.13

May13

Jun.13

Jul.13

(JPY tn)

(15.0)(12.5)(10.0)(7.5)(5.0)(2.5)0.0+2.5+5.0

(%)Commercial sales for retail (left axis)

YOY change (right axis)

BOJ Tankan survey - Business conditions DI*1BOJ Tankan survey - Business conditions DI*1 Retail sales*3Retail sales*3

(0.6)

(0.4)

(0.2)

0.0

0.2

0.4

0.6

0.8

Jun.12

Jul.12

Aug.12

Sep.12

Oct.12

Nov.12

Dec.12

Jan.13

Feb.13

Mar.13

Apr.13

May13

Jun.13

Jul.13

Core CPI for Japan

Core CPI for Ku-area of Tokyo

*1 Actual results. Diffusion index of “Favorable” minus “Unfavorable” *2 Source: Statistics Bureau. Core CPI: All items, less fresh foods. Ku-area of Tokyo: 23 wards of Tokyo*3 Source: Current Survey of Commerce, METI *4 Source: Cabinet Office. Original series. Volatile orders stand for orders for ships and those from electric power companies

(15)

(10)

(5)

0

5

10

15

20

Jun.12

Jul.12

Aug.12

Sep.12

Oct.12

Nov.12

Dec.12

Jan.13

Feb.13

Mar.13

Apr.13

May13

Jun.13

Large enterprises - Manufacturing

Large enterprises - Non-manufacturing

(%pt)

Consumer price index (YOY change)*2Consumer price index (YOY change)*2 Orders received for machinery*4Orders received for machinery*4

500

600

700

800

900

1,000

1,100

1,200

Jun.12

Jul.12

Aug.12

Sep.12

Oct.12

Nov.12

Dec.12

Jan.13

Feb.13

Mar.13

Apr.13

May13

Jun.13

(JPY bn)

(15)

(10)

(5)

0

+5

+10

+15

+20(%)

Total value of machinery orders for private sectorexcluding volatile orders (left axis)YOY change (right axis)

(%)

Trend of investment trusts sales and lending in Japan

(JPY bn)

31

Sales of investment trusts*1 YoY increase/decrease of loan balance*2

(3,000)

(2,000)

(1,000)

0

1,000

2,000

3,000

4,000

5,000

6,000

Apr.12

May Jun. Jul. Aug.Sep. Oct. Nov.Dec. Jan.13

Feb. Mar. Apr. May Jun.

(JPY bn)

SME

Corporation

*1 Sales of publicly offered investment trusts (Stock investmetn). Source: The Investment Trusts Association, Japan*2 Period end balance. Source: Bank of Japan

0

1,000

2,000

3,000

4,000

5,000

6,000

Apr.12

May Jun. Jul. Aug.Sep. Oct. Nov.Dec. Jan.13

Feb.Mar. Apr. May Jun. Jul.

“Abenomics” and “Quantitative and Qualitative Monetary Easing”

32

Pull-out of deflation/recover economy/ achieve nominal GDP growth rate of above 3%

Achieve the price stability target of 2% in terms of the YoY rate of change in the CPI at the earliest possible time, with a time horizon of about 2 years.

“Quantitative and Qualitative Monetary Easing”By BOJ (Announced on Apr. 4, 2013)

Targets

Support demand

Boost competitiveness of Japanese corporations

＋

＋

Policies : “Three arrows”

2% inflation target Strengthen monetary easing by BOJ Strengthen co-ordination between the government

and BOJ to overcome deflation Establish a public (MOF and BOJ) - private

investment fund for purchasing foreign bonds

2% inflation target Strengthen monetary easing by BOJ Strengthen co-ordination between the government

and BOJ to overcome deflation Establish a public (MOF and BOJ) - private

investment fund for purchasing foreign bonds

Aggressive monetary policyAggressive monetary policy

Formulate JPY 10.3 tn yen of supplementary budget for FY12

Adopt flexible economic / fiscal policies in the next 2-3 years

Institute large scale public investment based on national land reconstruction plan

Achieve primary balance surplus in 2020

Formulate JPY 10.3 tn yen of supplementary budget for FY12

Adopt flexible economic / fiscal policies in the next 2-3 years

Institute large scale public investment based on national land reconstruction plan

Achieve primary balance surplus in 2020

Flexible fiscal policyFlexible fiscal policy

Aim to be “trading / industrial investment nation” in the next 5 years

Deregulate aggressively and reduce corporate tax rate

Extend overseas investments, economicpartnership agreements and international natural resources strategy to capture growth of Asia

Aim to be “trading / industrial investment nation” in the next 5 years

Deregulate aggressively and reduce corporate tax rate

Extend overseas investments, economicpartnership agreements and international natural resources strategy to capture growth of Asia

Growth strategyGrowth strategy

Operating target Monetary base

Monetary base JPY 270 tn at end-2014(doubled from 2012)

Increase in JGB purchases

All maturities including 40-year bonds

JPY 7+ tn per month

Average remaining maturity: approx.7 years(extended from approx.3

years at 2012)

Increase in ETF purchases

Increase amounts outstanding at an annual

pace of JPY 1 tn(doubled from 2013)

Increase in J-REIT purchases

Increase amounts outstanding at an annual

pace of JPY 30 bn(tripled from 2013)

Recovery of export by easing excessive yen appreciation

Increase of domestic demand led by rise in stock prices

Japanese national wealth

33

Japan

Germany

Canada

U.K.

France

ItalyU.S.

Spain(100)

(80)

(60)

(40)

(20)

0

20

40

60

80（% of GDP）Closing Assets 8,451 Closing liabilities plus

net worth8,451

Households 2,556 Households 360

Financial assets 1,512 Non-financialcorporations 1,157

Non-financial assets 1,044 Stocks 349

Land 694 Financial corporations 2,825

Non-financial corporations 1,836 Stocks 85

Financial assets 816 General government 1,096

Non-financial assets 1,020 Closing liabilities 5,455

Land 282 Net worth 2,996

Financial corporations 2,885 Households 2,195

General government 1,087 Non-financialcorporations

678

Financial assets 496

Financial assets 5,721 Financial corporations 61

Non-financial assets 2,730 General government (19)

Net external assets ：JPY 296 tn

(Dec. 12)

To Nominal GDP: 231.5％

Balance Sheet of Japan (as of Dec. 2011, JPY tn)*1Balance Sheet of Japan (as of Dec. 2011, JPY tn)*1 Net international investment position*2Net international investment position*2

*1 Source：Cabinet office (Jan. 2013)*2 Source：IMF.Stat

2007 2008 2009 2010 2011 2012

Performance by business unit*1

*1 SMBC non-consolidated. Managerial accounting basis*2 After adjustment of internal rates, etc.

(JPY bn) FY3/12 FY3/13 YOY change*2

Consumer Banking Unit

Gross banking profit 383.7 374.9 +4.4Expenses 289.5 284.4 (5.4)

Banking profit (before provisions) 94.2 90.5 +9.8

Middle Market Banking Unit

Gross banking profit 422.9 412.2 (5.0)Expenses 222.8 216.7 (2.3)

Banking profit (before provisions) 200.1 195.5 (2.7)

Corporate Banking Unit

Gross banking profit 212.6 208.0 +2.6Expenses 38.2 39.6 +0.6


International Banking Unit

Gross banking profit 197.4 240.5 +33.0Expenses 64.9 72.9 +8.4


Marketing unitsGross banking profit 1,216.6 1,235.6 +35.0Expenses 615.4 613.6 +1.3


Treasury UnitGross banking profit 319.3 295.3 (24.0)Expenses 19.2 21.0 +1.5


HeadquartersGross banking profit (3.4) 9.2 (3.4)Expenses 84.9 93.1 +5.4

Banking profit (before provisions) (88.3) (83.9) (8.8)

TotalGross banking profit 1,532.5 1,540.1 +7.6Expenses 719.5 727.7 +8.2


34

Overseas loan balance classified by borrower type(Geographic classification based on booking office)*

0

25

50

75

100

125

150

Mar. 10 Mar. 11 Mar. 12 Mar. 13

Non-Japanese corporations and others (product type lending)Japanese corporations

0

25

50

75

100

Total Asia Americas EMEA

Non-Japanese corporations and othersJapanese corporations

0

25

50

75

100

Hong Kong China Singapore Sydney Bangkok Seoul

Non-Japanese corporations and othersJapanese corporations

(%)

Total By region (Mar. 2013)

Major marketing channels in Asia (Mar. 2013)

(USD bn) (%)

* Managerial accounting basis. Sum of SMBC, SMBC Europe and SMBC (China)35

Overseas loan balance classified by industry and domicile (Geographic classification based on domicile of borrowers)*

By industryBy industry By domicileBy domicile

0%

25%

50%

75%

100%

Mar.09 Mar.10 Mar.11 Mar.12 Mar.13

Others

IT

Electronics

Automobile andmachinery

Retail, wholesaleand commodities

Construction andreal estate

Various services

Transportation

Finance andinsurance

Material andenergy

0

5

10

15

Mar.09 Mar.10 Mar.11 Mar.12 Mar.13

Pacific, etc

Africa

Middle East

NorthenEurope

EasternEurope

WesternEurope

Central andSouth America

North America

Asia

* Managerial accounting basis. Sum of SMBC, SMBC Europe and SMBC (China) 36

(JPY tn)

Exposure to GIIPS countriesExposure to GIIPS countries - approx. USD 6.3 bn*1 as of March 2013

*1 Aircraft leasing by the newly consolidated SMBC Aviation Capital is approx. USD 0.49 bn in total; USD 0.33 bn in Ireland, USD 0.11 bn in Spain, USD 0.04 bn in Greece and USD 0.01 bn in Italy*2 Secondary holdings of government bonds in SMBC Nikko, with USD 0.70 mn in Italy and USD 0.02mn in Greece

(SMFG consolidated)

approx. USD 3.2 bn*1

Italy

To large corporationsand project finance

approx. USD 0.04 bnPortugal


Greece

Aircraft leasing


Ireland

Aircraft leasing


Spain

To large corporationsand project finance

Gov’t bonds issued byGIIPS countries*2 approx. USD 0.7 mn

37

Obligor grading system

Obligor grade Definition Borrower category Domestic

(C&I*), etc. Overseas (C&I*), etc.

J1 G1 Very high certainty of debt repayment

Normal borrowers

J2 G2 High certainty of debt repayment

J3 G3 Satisfactory certainty of debt repayment

J4 G4 Debt repayment is likely but this could change in cases of significant changes in economic trends or business environment

J5 G5 No problem with debt repayment over the short term, but not satisfactory over the mid to long term and the situation could change in cases of significant changes in economic trends or business environment

J6 G6 Currently no problem with debt repayment, but there are unstable business and financial factors that could lead to debt repayment problems

J7 G7 Close monitoring is required due to problems in meeting loan terms and conditions, sluggish/unstable business, or financial problems

Borrowers requiring caution

J7R G7R (Of which substandard borrowers) Substandard borrowers

J8 G8 Currently not bankrupt, but experiencing business difficulties, making insufficient progress in restructuring, and highly likely to go bankrupt

Potentially bankrupt borrowers

J9 G9 Though not yet legally or formally bankrupt, has serious business difficulties and rehabilitation is unlikely; thus, effectively bankrupt

Effectively bankrupt borrowers

J10 G10 Legally or formally bankrupt Bankrupt borrowers

* Commercial/Industrial38

Support for growing markets

Growth Industry Cluster Dept.

Support growth of emerging countries including Asia through leading a consortium of Japanese corporations with technological strength and municipalities.

Approaches for energy related businessExample

Approaches for emerging countriesExample

39

Renewable energy Solar energy, wind energy, etc.

Water Water supply and sewerage, recycled water, desalination, etc.

Environment Eco-city development, energy-saving facilities, etc.

Natural resources Coal, natural gas, etc.

Healthcare Medical, nursing, etc.

Agriculture Global expansion, etc.

India： Delhi-Mumbai Industrial Corridor Vietnam：Water, urban development, power Malaysia： Eco-city project Thailand： Upgrade industrial park Mongolia： Refurbish and construct electricity transmission

and distribution systems China： Healthcare, eco-city project

Exploration for mines / FS /development

Production /operation

Transportationinfrastructure

Port / terminalinfrastructure

End use(e.g. powergeneration)

M&A Project finance Business matching

Trade finance

Project finance ECA finance Ship finance

Project finance Corporate finance

Project finance Corporate finance

Dom

estic

(Jap

an)

Initial investment /

off-takingneeds

Relatedinfrastructuredevelopment

Powergeneration

Ove

rsea

s

• Relationship management• Financing

• Consulting

• M&A advisory• Equity / bond underwriting• Finance lease• Operating lease

Tailor-made solutions for corporate clients

40

主なサービス／プロダクツ

Business and asset succession Testamentary trust Workplace banking, etc.

M&A, alliance Financing Capital strategy, etc.

M&A, alliance for globally operating corporations Foreign currency funding, settlement (incl. CMS） Overseas expansion advisory, etc.

Bank - Securitiescollaboration

Domestic - Overseascollaboration

103 thousand corporate loan clients

Corporate Advisory Division

Offer industrial knowledge and know-how on corporate restructuring, etc.

Global Advisory Dept.Offer knowledge and information on

local regulations, business cultures and local companies, etc.

Private Advisory Dept.Offer experience and know-how on

business succession and asset management, etc.

Investment Banking Unit

Consumer Banking Unit

International Banking Unit

Investment Banking Unit

Broker-dealer / investment bankingBroker-dealer / investment banking International businessInternational business

Middle market and consumer banking combined operation Middle market and consumer banking combined operation

Middle market - Consumercollaboration

Largecorporations

Medium-sizedcorporations

SMEs

Integration of bank and securities businesses

Enhanced

Enhanced

Financial consulting for retail customers

41

We aim to continue maximizing synergies between SMBC, a mega-bank and SMBC Nikko, a top-notch securities company in Japan

Solid business infrastructureSolid business infrastructure

Coming era of inheritance

Advanced IT and network-society

Acceleration on savings to investment

JV with Barclays

Securities intermediarybusinesses

“Bank and Trade”

Mega-trends

AUM at SMBC: approx. JPY 70 tn No. of consultants: approx. 5,000 No. of marketing channels: approx. 600

Remote banking

Housing loans, card loans, insurance products

Investment management, testamentary trust,

apartment loans

Customized services

Since Oct. 2012

Since Jun. 2010

Since Apr. 2010

Going forward

Integration of bank and securities

businesses

Inheritance and succession business

Present

Japanese Individual Saving Accounts (ISA)

Asset and business succession

Asset transfer between generations

Asset building segmentMass segment

Private banking/Upper affluent segment

Asset managementsegment

(100)

(50)

0

50

FY3/2012 FY3/2013

(JPY bn)

SMBC Consumer Finance

500

600

700

800

Mar.11 Mar.12Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.Jan.13Feb. Mar.

(JPY bn)

Consumer loans outstanding*1Consumer loans outstanding*1

0

200

400

600

800

Mar. 12 Mar. 13

(JPY bn)

of which for regional financial institutions, etc.

Loan guarantee balance*1Loan guarantee balance*1 Consolidated net incomeConsolidated net income

*1 SMBC Consumer Finance non-consolidated basis*2 Made provisions in 2Q FY3/12 to prepare for interest refund claims

Tianjin(Started operations in Mar.13)

Shenzhen

Thailand

TaiwanHong Kong

0

5

10

15

20

Jun. Sep. Dec. Mar.

FY2010FY2011FY2012

(Thousand)

0

10

20

30

40

Jun. Sep. Dec. Mar.

FY2010FY2011FY2012

(Thousand)

Overseas operationsOverseas operationsTransaction-record disclosure requests*1Transaction-record

disclosure requests*1

Shenyang

Interest refund claims*1Interest refund claims*1

*2

(150)

(200)

42

0

0%

20%

40%

60%

80%

0

200

400

600

800

3/08 3/09 3/10 3/11 3/12 3/13

52%54%

57%

63% 63%67% 68%

72%

85% 87%91%

0%

20%

40%

60%

80%

100%

Expenses - controlled both in SMBC and on a group-wide basis

(JPY bn)

Expenses*1 Overhead ratio on a group consolidated basis*2

45.6%

719.5699.2

*1 Excluding non-recurring losses*2 Based on each company’s disclosure. G&A expenses (for Japanese banks, excluding non-recurring losses of subsidiary banks) divided by top-line profit (net of insurance claims).

FY3/13 results for SMFG, MUFG and Mizuho FG, and FY12/12 for others

FY3/13 YOY Change727.7 +8.2

Personnel expensesNon-personnel expensesOverhead ratio

46.9% 47.3%

727.7

43


FY

Equity holdingsBalance of equity holdings*1

1.62

24%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

1

2

3

4

5

6

Apr.01

Mar.02

Mar.03

Mar.04

Mar.05

Mar.06

Mar.07

Mar.08

Mar.09

Mar.10

Mar.11

Mar.12

Mar.13

Equity holdings (acquisition cost on SMBC non-consolidated, left axis)

Percentage of equity holdings to SMFG consolidated Tier I (right axis)

(JPY tn)

Reduced un-hedged equity holdings to

below 25% of SMFGTier I capital

*2

*1 Balance of domestic stocks classified as other securities at fair value*2 Until Mar. 2002, percentage to SMBC consolidated Tier I. On Mar. 2013, percentage to SMFG consolidated Tier I based on Basel III*3 Shares of SMFG related to share exchange for acquiring former Promise are excluded. Amount of un-hedged equity

*3

44

Summary of the Japanese regulatory capital framework

Transition period Fully implementedBasel II

Additional loss absorbency requirement for G-SIFIs

In March 2012, the Japanese FSA amended requirements regarding bank capital*1

Effective from the end of March 2013 to conform with the fiscal year end of Japanese banks Basically consistent with Basel III text

Phase-in of deductions*3 - 20% 40% 60% 80% 100% 100% 100% 100% 100%

Grandfathering ofcapital instruments 90% 80% 70% 60% 50% 40% 30% 20% 10% -

8.0% 8.0% 8.0% 8.0%8.625%

9.25%9.875%

10.5% 10.5% 10.5% 10.5%

*1 Drafts of other rules that are to be implemented after 2014, such as rules on capital buffers and liquidity standards, will be published at a later stage*2 With an empty bucket of 3.5% to discourage further systemicness*3 Including amounts exceeding the limit for deferred tax assets, mortgage servicing rights and investment in capital instruments of unconsolidated financial institutions

3.5% 4.0% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%

0.625% 1.25% 1.875% 2.5% 2.5% 2.5% 2.5%

1.0%1.5% 1.5%

1.5%1.5%

1.5%1.5% 1.5% 1.5% 1.5%

3.5% 2.5% 2.0%2.0%

2.0%2.0%

2.0% 2.0% 2.0% 2.0%

0%

2%

4%

6%

8%

10%

12%

14%

Mar. 12 Mar. 13 Mar. 14 Mar. 15 Mar. 16 Mar. 17 Mar. 18 Mar. 19 Mar. 20 Mar. 21 Mar. 22

Tier IIAdditional Tier ICapital conservation bufferMinimum common equity Tier I ratio

Bucket 4 (2.5％)*2

Bucket 1 (1.0％)

45

46

Act on Special Measures for Strengthening Financial Functions

Pre-emptive capital injection

Measure under Item 2Financial assistance

exceeding payout cost

*1 Scheduled to come into effect by Mar. 2014 *2 Failed: ceased or likely to cease repaying its deposit. *3 Negative net worth, etc.: to be or likely to be with negative net worth or to be or likely to be unable to pay its debts as they become due *4 According to the report on orderly resolution regime for financial institutions in Japan published by the Financial System Council, it is considered appropriate that

contractual bail-in options attached to subordinated debts are exercised when a financial institution in question is at insolvency and above measures are implemented.

Failed orwith negative net worth

Point of non-

viability

Yes

Q&A published by FSA on Dec. 12,

2012

No

Measures Status oftargeted institution

Arti

cle

102

of

Dep

osit

Insu

ranc

e A

ct (D

IA)

Measure under Item 1Pre-emptive capital injection

Measure under Item 3Nationalization

Specific measure under Item 2

Financial assistance

Failed andwith negative net worth

Non Item 2 or 3 measure

financial institutions(undercapitalized)

No

With negative net worth, etc.*3

To be clarified by

the cabinet order*4

Banksonly

Appliedentities

Financial institutionsincluding

banks and BHCs

Banks and

BHCs

Systemicrisk

NotRequired

Required(Credit

system in Japan or in

a certain region)

-

No. of cases

1

1

27Not failed*2 or with negative net worth

Exis

ting

mea

sure

sM

easu

res

to

be n

ewly

Im

plem

ente

d*1

Arti

cle

126-

2 of

DIA

Specific measure under Item 1Liquidity support

Pre-emptive capital injection

Notwith negative net worth

Public support and point of non-viability in Japan

Required(Financial

system such as financial market in Japan)

Trend of bottom line profitsSMBC’s non-consolidated net income

421478

618

(500)

(250)

0

250

500

750

FY3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13

(JPY bn)

47

Trend of major income componentsGross banking profit

(JPY bn)

(JPY bn)

Expenses

(JPY bn)

(JPY bn)

833 813 812

0

500

1,000

1,500

2,000

02 03 04 05 06 07 08 09 10 11 12 13

1,532 1,533 1,540

0

500

1,000

1,500

2,000

02 03 04 05 06 07 08 09 10 11 12 13

(JPY bn) (JPY bn)

94 59 20 0

500

1,000

1,500

2,000

02 03 04 05 06 07 08 09 10 11 12 13

699 719 728

0

500

1,000

1,500

2,000

02 03 04 05 06 07 08 09 10 11 12 13FY3/FY3/

FY3/


Banking profit (before provisions) Total credit cost

FY3/

48

Fixed Income Investor PresentationFinancial results of FY3/2013 and 1Q, FY3/2014 (JPY bn) FY3/2012...

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Transcript of Fixed Income Investor PresentationFinancial results of FY3/2013 and 1Q, FY3/2014 (JPY bn) FY3/2012...