News Release


[Sumitomo Mitsui Financial Group, Inc.]Sumitomo Mitsui Financial Group Announces Revision of Earnings Forecasts of a Consolidated Subsidiary (Kansai Urban Banking Corporation)(1/1)

 

Sumitomo Mitsui Financial Group Announces

Revision of Earnings Forecasts of

a Consolidated Subsidiary (Kansai Urban Banking Corporation)

 

 

TOKYO , April26, 2006 --- Sumitomo Mitsui Financial Group, Inc. (SMFG) hereby announces that Kansai Urban Banking Corporation, a consolidated subsidiary of SMFG, has revised its earnings forecast published on November18, 2005 (see Appendix).

 

 

 

 

 


(Appendix)

Kansai Urban Banking Corporation Announces

Revision of Earnings Forecast for Fiscal Year ended March 31, 2006

 

OSAKA, Japan, April26, 2006---Kansai Urban Banking Corporation (KUBC) announced today the revision of its previous earnings forecast for the fiscal year ended March 31, 2006, which was published on November 18, 2005.

 

1.      Revision of Earnings Forecast (Fiscal year ended March 31, 2006 )

 

(Consolidated)                                                                                                        (Millions of Yen)

 

Total Income

Ordinary Profit

Net Income

Previous Forecast (A)

79,000

12,900

5,100

Revised Forecast (B)

81,400

13,700

6,700

Difference (B) - (A)

+ 2,400

+ 800

+ 1,600

PercentageChange

+ 3.0

+ 6.2

+ 31.3

(Ref.) Year ended March 31, 2005

71,295

10,108

6,680

 

(Non-consolidated)                                                                                                 (Millions of Yen)

 

Total Income

Ordinary Profit

Net Income

Previous Forecast (A)

71,000

15,100

7,500

Revised Forecast (B)

72,500

15,600

8,700

Difference (B) - (A)

+ 1,500

+ 500

+ 1,200

PercentageChange

+ 2.1

+ 3.3

+ 16.0

(Ref.) Year ended March 31, 2005

59,920

9,675

6,148

 

2.  Factors behind the revision

 (1) Consolidated earnings

The revision is mainly due to the significant increase of the balance of loans to small and medium-sized enterprises as well as the steady increase of fee income. 

KUBC expects ordinary profit to be 13.7 billion yen, an increase of 0.8 billion yen (+6.2%) compared with the previous forecast and an increase of 3.5 billion yen (+35.5%) compared with the previous fiscal yearfs result.  Net income is expected to be 6.7 billion yen, an increase of 1.6 billion yen (+31.3%) compared with the previous forecast and an increase of 0.02 billion yen (+0.3%) compared with the previous fiscal yearfs result.

 (2) Non-consolidated earnings

The balance of loans and bills discounted,mainly to small and medium-sized enterprises and individuals, increased by 260.9 billion yen (+13.9%) compared with March 31, 2005 .  In addition, fees and commissions also increased steadily mainly due to increase in sales of investment trust and pension-type insurance.  As a result, core banking profit is expected to increase to 25 billion yen, compared with the previous forecast of 22.5 billion yen.  On the other hand, KUBC disposed of unrealized losses on bonds in the fiscal year ended March 31, 2006.  As a result, ordinary profit is expected to be 15.6 billion yen, an increase of 0.5 billion yen (+3.3%) compared with the previous forecast and an increase of 5.9 billion yen (+61.2%) compared with the previous fiscal yearfs result.   Net income is expected to be 8.7 billion yen, an increase by 1.2 billion yen (+16.0%)compared with the previous forecast and 2.5 billion yen (+41.5%)compared with the previous fiscal yearfs result.

(References)

 

1.Major IndicatorsiNon-consolidated basisj

  (Billions of Yen)

 

Fiscal year ended

Mar. 2005

Actual

Fiscal year ended

Mar. 2006

Estimate

 

Change

Percentage

change

Core Banking Profit*1

20.0

25.0

5.0

+25.0%

Banking Profit

19.6

20.7

1.1

+5.6%

Ordinary Profit

9.6

15.6

6.0

+62.5%

Net Income

6.1

8.7

2.6

+42.6%

 

 

 

 

 

Capital ratio

8.52%

 Approx. 9.4%

Approx. 0.9%

-

Deferred tax assets / Tier1

19.4%

Approx. 11%

Approx. (8%)

-

 

 

 

 

 

NPL ratio

3.9%

Approx.

2.6%

Approx. (1.3%)

-

 

 

 

 

 

Core ROA *2

0.88%

Approx. 1.0%

Approx. 0.1%

-

Core ROE *2

29.2%

Approx. 31.0%

Approx.

1.8%

-

Core OHR*2

59.5%

Approx. 54.2%

Approx. (5.3%)

-

 

*1. Core banking profit = Banking profit – Provision for general reserve for possible loan losses – Gains/losses on bonds

 

*2. Calculated based on core banking profit

 

 

 

2.      Balance of Loans, Deposits, and Investment Trusts under KUBCfs account

iNon-consolidated basisj

(Billions of Yen)

 

Mar. 2005

Actual

Mar. 2006

Estimate

 

Change

Percentage

change

Deposits

2,203.9

2,382.7

178.8

8.1%

 

Individualsf deposits

1,537.6

1,667.1

129.5

8.4%

Loans

1,870.5

2,131.4

260.9

13.9%

 

Housing loans

642.8

713.0

70.2

10.9%

 

 

 

 

 

Sales of investmenttrustsand

pension-type insurance

65.3

86.2

20.9

31.9%

 

Investment trusts

50.3

68.2

17.9

35.6%

 

Pension-type insurance

15.0

18.0

3.0

19.3%

 

 

 

 

 

Balance of investment trusts under KUBCfs account

114.4

164.4

50.0

43.6%

 




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