Sumitomo Mitsui Financial Group (8316): FY3/26 briefing: no clear measures to improve ROE growth pace, lagging vs peers

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Sumitomo Mitsui Financial Group (8316): FY3/26 briefing: no clear measures to improve ROE growth pace, lagging vs peers

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Sumitomo Mitsui Financial Group (8316)

FY3/26 briefing: no clear measures to

improve ROE growth pace, lagging vs peers

Reiterate Rating: BUY | PO: 6,650 JPY | Price: 5,732 JPY

18 May 2026

SMFG held its FY3/26 full-year results briefing at 13:30 on May 18. While FY3/29 ROE

Equitytarget of 12% appears slightly conservative vs MUFG’s FY3/27 target 12% and Mizuho’s

c.11.5%, there were no clear measures at this stage of a concrete path to ROE catch-up. Shinichiro Nakamura >>

Near term, focus will be on whether upward revisions to conservative FY3/27 guidance Research Analyst

BofAS Japan

(assuming no BoJ rate hikes) and additional buybacks will be announced at 1H results, +81 3 6225 8824

while over the medium to long term the key will be the extent to which initiatives such shinichiro.nakamura@bofa.com

as monetization of VISA share unrealized gains (e.g., converting Jefferies into an equity- Yuji Kobayashi >>

Research Analyst

method affiliate and additional investment in YES BANK) can improve ROE. Given the BofAS Japan

upside in the share price, we reiterate Buy. Key management messages are as follows: +81yuji.kobayashi@bofa.com3 6225 8791

(1) Upside to FY3/29 ROE target 12% (ROTE 13%) (both gross profit/capital utilization) Taisei Okui >> Research Analyst

Management acknowledged that ROE gap vs other megas may not narrow over the next +81 3 6225 8947

three years, partly reflecting yen depreciation-driven capital expansion. The strategy is taisei.okui@bofa.com

to first lift ROE through strong domestic retail and domestic corporate franchises, while

advancing structural reforms in relatively lagging global businesses. The group intends to