First Read: Sumitomo Mitsui Trust Group "Somewhat positive; new shareholder..."

Research evidence excerpt

First Read: Sumitomo Mitsui Trust Group "Somewhat positive; new shareholder..."

Global Research

14 May 2026ab

First Read

EquitiesSumitomo Mitsui Trust Group

Somewhat positive; new shareholder return Japan

policy testament to improved capital discipline Banks, Ex-S&L

12-month rating Neutral

12m price target ¥5,500

Q: What were the most noteworthy areas in the results?

There were two key points (Earnings Materials). First, significantly higher net fees and

commissions and related profit, driven by increased fees and commissions from asset Price (14 May 2026) ¥5,636

management and administration and corporate credit-related business. Second, RIC: 8309.T BBG: 8309 JP

expansion in effective interest-related earnings. Rises in domestic interest rate as well as

Trading data and key metrics

greater earnings related to investment partnerships contributed to solid core earnings.

52-wk range ¥5,770-3,627

Q: How would we expect investors to react? Market cap. ¥3,976b/US$25.2b

We expect somewhat positive investor reactions. Positive aspects include the FY3/27 Shares o/s 705m (ORD)

guidance envisaging profit growth and an expansion in shareholder returns outlined in Free float 89%

the New Medium-Term Management Plan. Notably, the company's shareholder return Avg. daily volume ('000) 2,248

policy made progress from a somewhat conservative stance on capital adequacy to a Avg. daily value (m) ¥11,804.6

more proactive stance on improving its capital efficiency. On the other hand, growth in Common s/h equity (03/26E) ¥3249b

core businesses' underlying earnings capability not necessarily being high is a challenge, P/BV (03/26E) 1.2x

in our view. We are focusing on sustained expansion of fee income. Tier 1 ratio 12%

EPS (reported, basic) (¥)

Q: How did the results compare vs expectations?