FY3/26 results: impressed with balanced shareholder return policy

Research evidence excerpt

FY3/26 results: impressed with balanced shareholder return policy

14 May 2026

Mizuho Securities Equity Research Banks

Earnings Results

Sumitomo Mitsui Trust Group (8309)

Rating: Buy Price Objective ¥6,450

Share price (14 May) ¥5,636

Implied upside +14% Results comment

TSE Segment Prime Sumitomo Mitsui Trust Group (SMTG) reported FY3/26 results after the

market close on 14 May. Parent adjusted NOP declined 15% YoY toMajor indicators (E = Mizuho estimates)

Market capitalization (¥b) 3,938.51 ¥244.5b (below our ¥290b forecast), but consolidated NP rose 23% YoY

Shares outstanding (m) 698.81 to ¥317.6b (roughly in line with the bank’s ¥317b guidance and above

Potential share dilution (m) –

Daily turnover (thou, mo. avg.) 1,887.89 our ¥295b forecast). Parent adjusted NOP declined due to the net impact

Foreign ownership (%, 9/25) 43.3 of four factors: 1) NII increased due to higher partnership investment

DPS(¥, 3/27E) 190.0

Dividend Yield(%, 3/27E) 3.4 income and lower foreign currency procurement costs (partially offset

Payout ratio(%, 3/27E) 40.2 by a deterioration in foreign currency trading income (foreign currency

Equity ratio(%, 3/27E) 4.3

BPS(¥, 3/27E) 5,087.8 surplus investment profits)); and 2) fee income increased related to

PBR(x, 3/27E) 1.1 corporate loans; but 3) other operating profit declined due to lower foreign

ROE(%, 3/27E NP basis) 9.6

ROA(%, 3/27E RP basis) 0.5 currency trading income and efforts to improve bond portfolio health; and

Note: No. of shares includes treasury stock 4) expenses increased driven by system investments. Consolidated NP

Absolute and TOPIX-relative share price increased due to the following factors: 1) a significant improvement in net

stock gains; 2) an improvement in extraordinary income on the booking of