Sumitomo Mitsui Financial Group: 27/3 Q1 results: Strong core earnings

研报英文原文证据摘录

Sumitomo Mitsui Financial Group: 27/3 Q1 results: Strong core earnings

Global Markets Research

31 July 2026Sumitomo Mitsui Financial Group

8316.T 8316 JP ADR:SMFG US / EQUITY: JAPAN BANKS

Rating27/3 Q1 results: Strong core earnings Remains Buy

Target price JPY 8,400 RemainsOff to brisk start versus guidance

Closing price JPY 6,814We reiterate Buy rating, still a top pick 31 July 2026

Sumitomo Mitsui Financial Group announced 27/3 Q1 results on 31 July, reporting strong

Implied upside +23.3%earnings both on a y-y basis and versus guidance, driven by earnings from client-facing

operations, especially in Japan. We reiterate our Buy rating and still regard the stock as a

top pick in the sector.

27/3 Q1 results overview Relative performance chart

We identify the following three takeaways from results.

(1) Overview: Profits attributable to owners of the parent were equivalent to 29% of full-

year guidance and were up 33% y-y, driven in part by strong consolidated net business

profits. The first page of the overview of results stated the following: "The anticipated

negative impact of Middle East-related risks has not yet materialized. Pursue upside,

supported by factors such as higher interest rates in Japan and core business growth."

(2) Core earnings: Consolidated net business profits were equivalent to 30% of full-year

guidance and up 33% y-y, driven by strong growth in fee & commission income as well as

growth in net interest income in Japan. Loans outstanding were strong overall, with a

notable 14% rise in loans to large Japanese companies. Deposits also compared

favorably to other banks, with a 6% rise in corporate deposits and a 2% rise in retail

deposits. The spread on loans to large companies, which had been weaker than at other Source: LSEG, Nomura