BW20030727002020 20030728T060103Z UTC
( BW)(SUMITOMO-MITSUI-BNKG)(SBK) 1st Quarter Results
Business Editors
UK REGULATORY NEWS
TOKYO--(BUSINESS WIRE)--July 28, 2003--
Sumitomo Mitsui Financial Group (SMFG)
Financial information for the First Quarter ending June 30, 2003 (Unaudited)
Sumitomo Mitsui Financial Group, Inc. (SMFG) announces its subsidiary,
Sumitomo Mitsui Banking Corporation (SMBC)'s quarterly financial
information for the First Quarter ended June 30, 2003.
(Notes)
1. All amounts in this press release are not audited.
2. The amounts as of December 31, 2002 are prepared for the former
SMBC and the former Wakashio Bank on a combined basis.
1. Problem assets classified by the category under the Financial
Reconstruction Law
(SMBC, Non-consolidated)
(Reference)
(Billions of yen) (Billions of yen)
As of June 30, 2003 As of Dec. 31, 2002 As of March 31, 2003
--------------------------------------------------------------------------
Bankrupt and quasi-
bankrupt assets 506.9 488.7 524.9
--------------------------------------------------------------------------
Doubtful assets 2,136.2 2,237.4 2,129.5
--------------------------------------------------------------------------
Substandard assets 2,605.8 2,627.9 2,606.9
--------------------------------------------------------------------------
Total 5,248.9 5,354.0 5,261.3
--------------------------------------------------------------------------
(Notes)
1. Breakdown of problem assets as of June 30, 2003 and December 31,
2002 is reported in accordance with the categories specified under
Article 4 of Ordinance on Financial Reconstruction Law. The
calculation methods for the December-end and June-end amounts,
however, differ from those of the March-end and September-end amounts
in the following points. Consequently, there is no continuity.
2. Amounts for June 30, 2003 are based on the balance of claims to
each borrower category(i) at the end of March 2003.
Borrower categories are reviewed in accordance with the
self-assessment criteria, and claims to borrowers whose category has
changed during the period from March-end to June-end 2003 are
reclassified accordingly.
Claims to large-scale borrowers are adjusted for write-offs, projected
amount of provisioning, collected amount, amount estimated to be
available after disposal of collateral, etc. at the end of June 2003.
Such adjustment is not made for claims to other borrowers.
(a) Bankrupt and Quasi-bankrupt Assets and Doubtful Assets
Claims to borrowers whose category is revised down are newly added to
Bankrupt and Quasi-bankrupt Assets or Doubtful Assets, and claims
hitherto classified as Doubtful Assets are reclassified as Bankrupt
and Quasi-bankrupt Assets.
Claims to borrowers whose category is revised up are deducted from
Bankrupt and Quasi-bankrupt Assets or Doubtful Assets, and claims
hitherto classified as Bankrupt and Quasi-bankrupt Assets are added to
Doubtful Assets.
Of the claims newly classified as Bankrupt and Quasi-bankrupt Assets,
those recognized as being of no value are deducted as an equivalent
for direct write-offs.
(b) Substandard Assets
New claims to Borrowers Requiring Caution classified as Substandard
Borrowers are added to Substandard Assets and the existing claims
reclassified as Bankrupt and Quasi-bankrupt Assets or Doubtful Assets
are deduced from Substandard Assets.
(i) Relationship between the Financial Reconstruction Law categories
and self-assessment categories:
Bankrupt and quasi-bankrupt assets (Claims to bankrupt or effectively
bankrupt borrowers)
Doubtful assets (Claims to potentially bankrupt borrowers)
Substandard assets (Claims to borrowers requiring caution, overdue
three months or relaxed the terms of lending)
2. Consolidated Capital Ratio (BIS Guidelines) (SMFG, Consolidated)
(Reference)
SMFG (Consolidated) SMBC (Consolidated)
----------------------------------------------------------------- ------------------------
As of March 31, 2003 As of March 31, 2003
(Estimated) (Actual)
------------------------------------------------------------------ ------------------------
SMFG's Consolidated Capital Ratio Approximately 10% 10.10%
SMFG's Consolidated Tier I Ratio Approximately 5.5% 5.50%
----------------------------------------------------------------- ------------------------
(Notes) Above estimation may be revised should the business environment presumptions change.
3. Net Unrealized Gains (Losses) on Marketable Securities (SMBC, Non-consolidated)
(Billions (Reference) (Billions
of yen) of yen)
------------------------------------------------------------------------------- --------------------------------
As of June 30, 2003 As of Dec 31, 2002 As of March 31, 2003
----------------------------------------------------------- -------------------------------
Net Unrealized Net Unrealized Net Unrealized
Gains (Losses) Gains (Losses) Gains (Losses)
Market -------------- Market -------------- Market
Value Gains Losses Value Gains Losses Value Gains Losses
------------------------------------------------------------------------------- -------------------------------------
Other
Securities 22,154.0 112.8 369.7 256.9 17,102.0 (1,221.0)176.0 1,397.1 20,493.7 (17.9) 257.7 275.5
------------------------------------------------------------------------------- -------------------------------------
Stocks 2,815.6 72.9 257.7 184.7 3,317.6 (1,277.2) 88.9 1,366.1 2,916.5 (152.4) 105.3 257.6
------------------------------------------------------------------------------ -------------------------------------
Bonds 14,347.2 5.4 56.4 51.0 10,024.2 57.4 62.4 4.9 13,294.2 108.7 112.4 3.7
------------------------------------------------------------------------------ -------------------------------------
Other 4,991.1 34.5 55.6 21.1 3,760.1 (1.3) 24.7 26.1 4,283.1 25.8 40.0 14.2
------------------------------------------------------------------------------- -------------------------------------
(Notes) 1. Net unrealized gains (losses) as of each term-end are the
differences between book value (before application of amortized cost
method and devaluation) and market value as of each term-end. Net
unrealized gains (losses) as of March 31, 2003 are the differnces
between acquisition cost (after application of amortized cost method
and devaluation) and market value as of March 31, 2003.
2. Market value is calculated as follows:
Stocks: Average market price for one month before the term-end
Bonds and others: Market price as of the term-end
3. Amounts above include securities, negotiable certificates of
deposit bought, commercial paper and beneficiary claims on loan trusts
and others.
4. Net unrealized gains (losses) on held-to-maturity securities and
investments in subsidiaries and affiliates are as follows:
(Reference) Net Unrealized Gains (Losses) on Held-to-Maturity Securities and Investments in Subsidiaries and Affiliates
(Billions of yen) (Billions of yen)
------------------------------------------------------- -------------------------------- -----------------------------
As of June 30, 2003 As of Dec. 31, 2002 As of March 31, 2003
--------------------------- -------------------------------- -----------------------------
Net Unrealized Net Unrealized Net Unrealized
Gains (Losses) Gains (Losses) Gains (Losses)
Book ----------------- Book
Value Gains Losses Value Gains Losses Book Value Gains Losses
-------------------------------------------------------- ------------------------------- ------------------------------
Held-to-maturity securuties 534.6 (0.4) 3.4 3.7 293.3 3.5 3.5 0.0 285.8 3.8 3.9 0.1
-------------------------------------------------------- ------------------------------- ------------------------------
Investments in subsidiaries
and affiliates 80.6 (13.8) 0.3 14.1 112.6 (21.7) 5.0 26.7 80.6 (20.4) 0.6 21.1
-------------------------------------------------------- ------------------------------- ------------------------------
4. Derivatives (SMBC, Non-consolidated)
(1) Interest Rate Derivatives
(Billions of yen) (Reference) (Billions
of yen)
As of June 30, 2003 As of December 30, 2002 As of March 31, 2003
------------------------------- ------------------------------ --------------------------
Contract Market Net Gains Contract Market Net Gains Contract Market Net Gains
Amount Value (Losses) Amount Value (Losses) Amount Value (Losses)
------------------------------- ------------------------------ --------------------------
Transactions listed on exchange
Interest rate futures 177,305.8 21.1 21.1 73,581.8 6.7 6.7 92,339.7 5.7 5.7
Interest rate options 2,587.3 (0.3) (0.3) 2,355.5 0.1 0.1 1,831.7 (0) (0)
Over-the-counter transactions
Forward rate agreements 4,515.0 0.2 0.2 7,878.5 0.0 0.0 5,843.0 0.2 0.2
Interest rate swaps 312,790.2 243.9 243.9 248,220.4 191.0 191.0 258,232.0 219.3 219.3
Other 6,222.8 0.2 0.2 5,240.9 1.5 1.5 5,819.3 0.6 0.6
---------------------------------------------------------------------------------------
Total 265.1 265.1 199.3 199.3 225.8 225.8
(Notes) 1. Amounts above do not include derivative transactions to
which hedge accounting method is applied.
2. Amounts as of December 30,2002 and June 30, 2003 are derived from
amounts booked at all domestic offices and major overseas offices.
(2) Currency Derivatives
(Billions of yen) (Reference) (Billions
of yen)
As of June 30, 2003 As of December 30, 2002 As of March 31, 2003
----------------------------- ---------------------------- ------------------------------
Contract Market Net Gains Contract Market Net Gains Contract Market Net Gains
Amount Value (Losses) Amount Value (Losses) Amount Value (Losses)
----------------------------- ---------------------------- ------------------------------
Over-the-counter transactions
Currency swaps 8,123.5 (27.3) (27.3) 6,693.7 (6.1) (6.1) 6,504.0 (4.9) (4.9)
1,278.0 8.5 8.5 1,094.3 9.3 9.3 1,195.2 10.6 10.6
34,493.1 7.5 7.5 - - - - - -
5,333.4 (46.5) (46.5) - - - - - -
---------------------------------------------------------- -----------------------------
Total (57.8) (57.8) 3.2 3.2 5.7 5.7
(Notes) 1. Amounts above do not include derivative transactions to
which hedge accounting method is applied and transactions below (Note
3).
2. Amounts as of December 30,2002 and June 30, 2003 are derived from
amounts booked at all domestic offices and major overseas offices.
3. Contract amounts of revaluated foreign exchange and currency
options are as follows:
(Billions of yen) (Reference) (Billions of yen)
As of December 30, 2002 As of March 31, 2003
------------------------------------------------------ ---------------------------------
Contract Amount Contract Amount
------------------------------------------------- -------------------
Transactions listed on
exchange
Currency futures ? ?
Currency options ? ?
Over-the-counter transactions
Forward foreign exchange 39,169.7 27,587.0
Currency options 4,245.2 6,197.4
(3) Equity Derivatives
(Billions of yen) (Reference) (Billions of yen)
As of June 30, 2003 As of December 30, 2002 As of March 31, 2003
------------------------------------------------------------ ------------------------------
Contract Market Net Gains Contract Market Net Gains Contract Market Net Gains
Amount Value (Losses) Amount Value (Losses) Amount Value (Losses)
------------------------------------------------------------ ------------------------------
Transactions listed on exchange
Equity price index futures 47.5 (1.5) (1.5) 0.8 0.0 0.0 ? ? ?
Equity price index options ? ? ? ? ? ? ? ? ?
Over-the-counter transactions
Equity options 22.3 (0.4) (0.4) 22.7 0.2 0.2 0.0 0.0 0.0
Equity swaps ? ? ? ? ? ? ? ? ?
Other ? ? ? ? ? ? ? ? ?
--------------------------------------------------------------------------------------------
Total (1.9) (1.9) 0.2 0.2 0.0 0.0
(Notes) 1. Amounts above do not include derivative transactions to
which hedge accounting method is applied.
2. Amounts as of December 30, 2002 and June 30, 2003 are derived from
amounts booked at all domestic offices and major overseas offices.
(4) Bond Derivatives
(Billions of yen) (Reference) (Billions of yen)
As of June 30, 2003 As of December 30, 2002 As of March 31, 2003
--------------------------- -------------------------- -----------------------------
Contract Market Net Gains Contract Market Net Gains Contract Market Net Gains
Amount Value (Losses) Amount Value (Losses) Amount Value (Losses)
--------------------------- ------------------------- -----------------------------
Transactions listed
on exchange
Bond futures 441.1 (0.1) (0.1) 180.3 0.0 0.0 229.9 (0.3) (0.3)
Bond futures options 16.4 0.1 0.1 15.0 0.0 0.0 4.0 (0) (0)
Over-the-counter transactions
Bond options ? ? ? 0.4 0.0 0.0 ? ? ?
-------------------------- ------------------------- -------------------------------
Total 0.0 0.0 0.0 0.0 (0.3) (0.3)
(Notes) 1. Amounts above do not include derivative transactions to
which hedge accounting method is applied.
2. Amounts as of December 30, 2002 and June 30, 2003 are derived from
amounts booked at all domestic offices and major overseas offices.
(5) Commodity Derivatives
(Billions of yen) (Reference) (Billions of yen)
As of June 30, 2003 As of December 30, 2002 As of March 31, 2003
----------------------------- -------------------------- ----------------------------
Contract Market Net Gains Contract Market Net Gains Contract Market Net Gains
Amount Value (Losses) Amount Value (Losses) Amount Value ( Losses)
----------------------------- -------------------------- ----------------------------
Over-the-counter
transactions
Commodity swaps 69.6 0.9 0.9 53.5 0.6 0.6 62.1 0.8 0.8
Commodity options 11.8 0.0 0.0 9.2 0.0 0.0 12.7 0.0 0.0
----------------------------- --------------------------- ----------------------------
Total 0.9 0.9 0.7 0.7 0.8 0.8
(Notes) 1. Amounts above do not include derivative transactions to
which hedge accounting method is applied.
2. Amounts as of December 30, 2002 and June 30, 2003 are derived from
amounts booked at all domestic offices and major overseas offices.
3. Commodities are oil-related and metal- related commodities.
(6) Credit Derivatives
(Billions of yen) (Reference) (Billions of yen)
As of June 30, 2003 As of December 30, 2002 As of March 31, 2003
----------------------------- -------------------------- -----------------------------
Contract Market Net Gains Contract Market Net Gains Contract Market Net Gains
Amount Value (Losses) Amount Value (Losses) Amount Value (Losses)
------------------------------ -------------------------- -----------------------------
Over-the-counter
transactions
Credit default options ? ? ?? ? ? ?? ? ? ?
Other 2.4 0.0 0.0 1.8 0.0 0.0 2.1 0.0 0.0
----------------------------- ------------------------- -----------------------------
Total 0.0 0.0 0.0 0.0 0.0 0.0
(Notes) 1. Amounts above do not include derivative transactions to
which hedge accounting method is applied.
2. Amounts as of December 30, 2002 and June 30, 2003 are derived from
amounts booked at all domestic offices and major overseas offices.
5. (Hedging purpose) Derivatives (SMBC, Non-consolidated)
(Billions of yen)
----------------------------------------------------------------- ----------------------------------------------------
As of June 30, 2003 As of December 31, 2002
--------------------------------------------- ---------------------------------------------------
Net Deferred Net Deferred
valuation gains valuation gains
gains (losses) gains (losses)
(losses) (losses)
---------------------- ---------------------- ----------------------------------------------------
Asset Liabilities Asset Liabilities
------------------------------------------------------------------- ---------------------------------------------------
Interest rate swaps 288.3 191.8 96.5 56.9 543.8 206.6 337.2 133.1
------------------------------------------------------------------- ---------------------------------------------------
Currency swaps 55.5 42.6 12.9 8.3 419.2 406.1 13.1 11.9
------------------------------------------------------------------- ---------------------------------------------------
Other 3.2 2.0 1.2 (13.0) 59.3 37.5 21.8 14.8
------------------------------------------------------------------- ---------------------------------------------------
Total 347.0 236.4 110.6 52.2 1,022.3 650.2 372.1 159.8
------------------------------------------------------------------- ---------------------------------------------------
(Reference) (Billions of yen)
--------------------------------------------------------------------------------------
As of March 31, 2003
---------------------------------------
Net
valuation Deferred
gains gains
(losses) (losses)
--------------------
Asset Liabilities
--------------------------------------------------------------------------------------
Interest rate swaps 398.5 175.2 223.3 117.3
--------------------------------------------------------------------------------------
Currency swaps 419.5 408.0 11.5 9.6
--------------------------------------------------------------------------------------
Other 58.9 31.5 27.4 28.9
--------------------------------------------------------------------------------------
Total 876.9 614.7 262.2 155.8
--------------------------------------------------------------------------------------
(Notes) 1. Derivative transactions are carried at fair value in the
balance sheet, except those to which 'the short-cut method for
interest rate swap' is applied.
2. As for the year ended March 31, 2003, SMBC applied deferred hedge
accounting by applying 'the risk adjustment approach', which is one of
the methods of macro hedging.
As for the year ending March 31, 2003, SMBC applies deferred hedge
accounting based on 'Treatment for Accounting and Auditing of
Application of Accounting Standard for Financial Instruments in
Banking Industry' (JICPA Industry Audit Committee Report No.24).
(Reference) Contract amount of interest rate swaps (to which deferred
hedge accounting is applied), classfied by maturity is as follows:
Pursuant to 'Treatment for Accounting and Auditing of Application of
Accounting Standard for Financial Instruments in Banking Industry'
some transactions are valued at fair value. Such transactions are
included in "4. Derivatives."
(Billions of yen)
--------------------------------------------------------------------- ------------------------------------------------
As of June 30, 2003 As of December 31, 2002
------------------------------------------------ ------------------------------------------------
1 year or 1 to 5 years Over 5 Total 1 year or 1 to 5 years Over 5 years Total
less years less
--------------------------------------------------------------------- ------------------------------------------------
Receivable fixed
rate/ payable
floating rate 6,800.0 13,450.3 5,030.1 25,280.4 21,535.1 20,561.9 5,149.2 47,246.2
-------------------------------------------------------------------- -------------------------------------------------
Receivable floating
rate/ payable fixed
rate 850.1 4,524.8 1,467.7 6,842.6 15,956.8 10,659.3 3,368.9 29,985.0
-------------------------------------------------------------------- -------------------------------------------------
Receivable floating
rate/ payable
floating rate 3.0 594.1 40.8 637.9 7.0 707.7 44.5 759.2
-------------------------------------------------------------------- -------------------------------------------------
Total contract amount 7,653.1 18,569.2 6,538.6 32,760.9 37,498.9 31,928.9 8,562.6 77,990.4
-------------------------------------------------------------------- -------------------------------------------------
(Reference) (Billions of yen)
----------------------------------------------------------------------------------------------------------
As of March 31, 2003
---------------------------------------------
1 year or 1 to 5 Over 5 Total
less years years
-----------------------------------------------------------------------------------------------------------
Receivable fixed rate/ payable floating rate 20,063.1 22,188.0 6,588.7 48,839.8
-----------------------------------------------------------------------------------------------------------
Receivable floating rate/ payable fixed rate 12,075.6 14,597.6 3,509.8 30,183.0
-----------------------------------------------------------------------------------------------------------
Receivable floating rate/ payable floating rate 5.2 866.6 Sheet 956.3
-----------------------------------------------------------------------------------------------------------
Total contract amount 32,143.9 37,652.2 10,183.0 79,979.1
----------------------------------------------------------------------------------------------------------
6. Outstandings of Domestic Deposits
(Billions of yen)
As of June 30, 2003 As of March 31, 2003 As of June 30, 2002
-------------------------------------------------------------------------
Domestic deposits 56,528.7 56,471.8 54,297.6
Individual 31,837.3 31,210.2 31,235.7
(Note) Calculation based on the numbers before elimination of
temporary inter-office accounts, excluding negotiable certificates of
deposit and offshore banking accounts.
Short Name: Sumitomo Mitsui Bnkg.
Category Code: QRF
Sequence Number: 00007637
Time of Receipt (offset from UTC): 20030728T035148+0100
--30--FAP/ny*
CONTACT: Sumitomo Mitsui Bnkg
KEYWORD: UNITED KINGDOM JAPAN INTERNATIONAL EUROPE ASIA PACIFIC
INDUSTRY KEYWORD: BANKING
SOURCE: Sumitomo Mitsui Bnkg
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