News Release


[SumitomoMitsui Financial Group, Inc.]Notice Regarding the Filing of an Annual Report on Form 20-F with the U.S. Securities and Exchange Commission(1/1)

 

Sumitomo Mitsui Financial Group, Inc.

 

 

Notice Regarding the Filing of an Annual Report on Form 20-F

with the U.S. Securities and Exchange Commission

 

 

TOKYO, July 24, 2013 --- Sumitomo Mitsui Financial Group, Inc. (gSMFGh, President: Koichi Miyata) hereby announces that, on July 23, 2013 (Eastern Daylight Time), SMFG filed an annual report on Form 20-F with the U.S. Securities and Exchange Commission (gSECh).

 

A copy of the annual report on Form 20-F can be viewed and obtained at SMFGfs website at http://www.smfg.co.jp/english/investor/financial/annual.html or on EDGAR, the SECfs Electronic Data Gathering, Analysis, and Retrieval system. Holders of SMFGfs American Depositary Receipts may request a hard copy of SMFGfs complete audited financial statements free of charge through SMFGfs website.

 

 

(Attachment)

 

(Reference 1) Consolidated Financial Statements (IFRS)

(Reference 2) Reconciliation with Japanese GAAP

 

ƒeƒLƒXƒg ƒ{ƒbƒNƒX: This document contains a summary of SMFGfs consolidated financial information under International Financial Reporting Standards (gIFRSh) as issued by the International Accounting Standards Board that was disclosed in its annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on July 23, 2013. This document does not contain all of the information in the Form 20-F that may be important to you. You should read the entire Form 20-F carefully to obtain a comprehensive understanding of SMFGfs business and financial data under IFRS and related issues.
This document contains gforward-looking statementsh (as defined in the U.S. Private Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of SMFG and its management with respect to SMFGfs future financial condition and results of operations. In many cases but not all, these statements contain words such as ganticipate,h gbelieve,h gestimate,h gexpect,h gintend,h gmay,h gplan,h gprobability,h grisk,h gproject,h gshould,h gseek,h gtarget,h gwillh and similar expressions. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward-looking statements contained or deemed to be contained herein. The risks and uncertainties which may affect future performance include: deterioration of Japanese and global economic conditions and financial markets; declines in the value of SMFGfs securities portfolio; SMFGfs ability to successfully implement its business strategy through its subsidiaries, affiliates and alliance partners; exposure to new risks as SMFG expands the scope of its business; and incurrence of significant credit-related costs. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the date of this document. SMFG undertakes no obligation to update or revise any forward-looking statements. Please refer to SMFGfs most recent disclosure documents such as its annual report or registration statement on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as its earnings press releases, for a more detailed description of the risks and uncertainties that may affect its financial conditions, its operating results, and investorsf decisions.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 (Reference 1) Consolidated Financial Statements (IFRS)

 

Consolidated Statement of Financial Position

(In millions)

 

At March 31,@2012

At March 31,@2013

Assets:

 

 

Cash and deposits with banks

\     8,050,562

\     11,804,873

Call loans and bills bought

1,297,082

1,393,440

Reverse repurchase agreements and cash collateral on securities borrowed

4,937,025

3,930,557

Trading assets

4,461,258

4,097,084

Derivative financial instruments

5,901,526

6,855,486

Financial assets at fair value through profit or loss

2,150,409

2,045,046

Investment securities

37,324,100

35,728,537

Loans and advances

72,536,813

75,987,057

Investments in associates and joint ventures

206,660

260,495

Property, plant and equipment

1,045,006

1,757,994

Intangible assets

899,167

903,264

Other assets

2,367,300

2,810,755

Current tax assets

65,298

51,449

Deferred tax assets

632,220

381,689

Total assets

\   141,874,426

\    148,007,726

Liabilities:

 

 

Deposits

\    92,853,566

\    101,021,413

Call money and bills sold

2,144,600

2,954,052

Repurchase agreements and cash collateral on securities lent

7,487,633

6,510,627

Trading liabilities

2,173,567

1,910,905

Derivative financial instruments

5,850,813

6,936,991

Borrowings

10,412,858

6,475,543

Debt securities in issue

7,377,742

8,085,263

Provisions

425,350

279,131

Other liabilities

5,401,790

4,776,912

Current tax liabilities

61,786

206,977

Deferred tax liabilities

69,330

107,262

Total liabilities

134,259,035

139,265,076

Equity:

 

 

Capital stock

2,337,896

2,337,896

Capital surplus

862,933

862,305

Retained earnings

2,162,696

2,596,104

Other reserves

437,177

1,069,603

Treasury stock

(236,037)

(227,373)

Equity attributable to shareholders of Sumitomo Mitsui Financial Group, Inc.

5,564,665

6,638,535

Non-controlling interests

2,050,726

2,104,115

Total equity

7,615,391

8,742,650

Total equity and liabilities

\    141,874,426

\    148,007,726


Consolidated Income Statement

(In millions, except per share data)

 

For the fiscal year ended March 31,

 

2012

2013

Interest income

\     1,710,331

\     1,725,723

Interest expense

313,631

339,520

Net interest income

1,396,700

1,386,203

 

 

 

Fee and commission income

869,407

948,685

Fee and commission expense

132,562

127,099

Net fee and commission income

736,845

821,586

 

 

 

Net trading income

182,296

179,750

Net income from financial assets at fair value
through profit or loss

33,734

15,794

Net investment income

239,365

216,967

Other income

245,563

324,404

Total operating income

2,834,503

2,944,704

 

 

 

Impairment charges on financial assets

284,310

267,243

Net operating income

2,550,193

2,677,461

 

 

 

General and administrative expenses

1,366,705

1,443,196

Other expenses

239,292

288,307

Operating expenses

1,605,997

1,731,503

 

 

 

Share of post-tax profit (loss) of associates and joint ventures

(25,004)

19,593

Profit before tax

919,192

965,551

 

 

 

Income tax expense

461,194

274,795

Net profit

\      457,998

\      690,756

 

 

 

Profit attributable to:

 

 

Shareholders of Sumitomo Mitsui Financial Group, Inc.

\      345,430

\      572,916

Non-controlling interests

112,568

117,840

 

 

 

Earnings per share:

 

 

Basic

\       248.98

\       423.15

Diluted

248.29

422.65

 


Consolidated Statement of Comprehensive Income

(In millions)

 

For the fiscal year ended March 31,

 

2012

2013

Net profit

\     457,998

\     690,756

 

 

 

Other comprehensive income:

 

 

Available-for-sale financial assets:

 

 

Gains arising during the period, before tax

253,865

763,457

Reclassification adjustments for gains included
in net profit, before tax            

 

(21,563)

 

(8,378)

Exchange differences on translating the foreign operations:

 

 

Gains (losses) arising during the period, before tax

(34,781)

235,947

Reclassification adjustments for losses included
in net profit, before tax            

 

7,350

 

4,579

Share of other comprehensive income (loss) of associates
and joint ventures

 

(2,832)

 

3,354

Income tax relating to components of other comprehensive income

(43,809)

(292,137)

Other comprehensive income, net of tax

158,230

706,822

Total comprehensive income

\    616,228

\   1,397,578

 

 

 

Total comprehensive income attributable to:

 

 

Shareholders of Sumitomo Mitsui Financial Group, Inc.

\    501,316

\   1,205,342

Non-controlling interests

114,912

192,236

 


(Reference 2) Reconciliation with Japanese GAAP

 

 

 

(In billions)

 

 

At and for the fiscal year ended

March 31, 2013

 

 

Total equity

Net profit

 

IFRS

\        8,742.7

\         690.8

 

Differences arising from different accounting for:

 

 

 

1. Scope of consolidation

79.6

(39.8)

 

2. Derivative financial instruments

105.7

53.3

 

3. Investment securities

(205.9)

116.3

 

4. Loans and advances

(170.2)

(44.2)

 

5. Investments in associates and joint ventures

0.1

(22.4)

 

6. Property, plant and equipment

(5.6)

(0.4)

 

7. Lease accounting

(7.7)

7.7

 

8. Defined benefit plans

11.5

(19.4)

 

9. Deferred tax assets

(102.8)

170.4

 

10. Foreign currency translation

-

56.9

 

Others

(99.0)

(9.5)

 

Tax effect of the above

94.8

(41.6)

 

Japanese GAAP

\        8,443.2

\        *918.1

(*)Includes a net profit of 124.0 billion yen attributable to non-controlling interests.

 

A brief explanation of adjustments with significant impacts arising from differences in equity and/or net profit between Japanese GAAP and IFRS is provided below. For a more detailed explanation, please refer to gItem 5. Operating and Financial Review and Prospects|Reconciliation with Japanese GAAPh in the annual report on Form 20-F filed on July 23, 2013 (Eastern Daylight Time).

 

Scope of Consolidation (Item 1)

·    Under IFRS, the SMFG Group consolidates an entity when it gcontrolsh the entity. Control is generally presumed to exist when the SMFG Group has the power to govern the financial and operating policies by owning more than half of the voting power, or by legal or contractual arrangements.

·    A special purpose entity (gSPEh) is consolidated under IFRS when the substance of the relationship between the SPE and the SMFG Group indicates that the SPE is controlled by the SMFG Group. Therefore certain SPEs such as securitization vehicles and investment funds which are not consolidated under Japanese GAAP are consolidated under IFRS.

 

 

 

Derivative financial instruments (Item 2)

(Hedge accounting)

·    The SMFG Group applies hedge accounting under Japanese GAAP. However, the conditions for hedge accounting under IFRS are not fully the same as those under Japanese GAAP. The SMFG Group does not apply hedge accounting under IFRS and reversed the effects of hedge accounting under Japanese GAAP.  

(Fair value measurement of derivative financial instruments)

·    Japanese GAAP and IFRS require Over-the-Counter (gOTCh) derivatives (non-exchange traded derivatives) to be measured at fair value. In principle, there is no significant difference in the definitions of fair value, but in practice there is diversity in the application of valuation techniques used for fair value under Japanese GAAP and IFRS. Therefore, to meet the requirements of fair value under IFRS, adjustments have been made to the fair values under Japanese GAAP to reflect the spread between bid and ask prices, as well as credit risk adjustments for OTC derivatives.

 

Investment securities (Item 3)

(Fair value measurement of investment securities)

·    Under IFRS, available-for-sale financial assets (and financial assets at fair value through profit or loss) should be measured at fair value. The fair value of financial instruments where there is no quoted price in an active market is determined by using valuation techniques.

·    In addition, the fair values of certain financial instruments under Japanese GAAP have been adjusted in order to meet the requirements of fair value under IFRS. For example, the last 1-month average of the closing transaction prices can be used for the fair value measurement of available-for-sale financial assets (listed stocks) under Japanese GAAP, whereas closing spot prices are used under IFRS.

(Impairment of available-for-sale financial assets)

·    Under IFRS, the SMFG Group assesses whether there is objective evidence that available-for-sale financial assets are impaired. For available-for-sale equity instruments, objective evidence of impairment includes a significant or prolonged decline in the fair value below cost. Additionally, under Japanese GAAP, the SMFG Group reverses impairment losses recognized in a previous interim period, whereas the reversal of the impairment losses on equity instruments is not allowed under IFRS.

 

Loans and advances (Item 4)

(Impairment of loans and advances)

·    Under Japanese GAAP, the reserve for possible loan losses for specifically identified significant loans is calculated by using the discounted cash flow (gDCFh) method, which is based on the present value of reasonably estimated cash flows discounted at the original contractual interest rate of the loan. Under IFRS, the allowance for loan losses for individually significant impaired loans is calculated by using the DCF method based on the best estimate of cash flows discounted at the original effective interest rate. In addition, the scope of the loans that are subject to the DCF method under IFRS is wider than that under Japanese GAAP.

·    Under IFRS, the allowance for loan losses for the remaining loans is collectively calculated by homogeneous group using statistical methods based on the historical loss experience and incorporating the effect of the time value of money. A qualitative analysis based on related economic factors is then performed to reflect the current conditions at the end of the reporting period. Under IFRS, the allowance for the non-impaired loan losses is calculated as incurred but not yet identified losses for the period between the impairment occurring and the loss being identified, although the allowance under Japanese GAAP is calculated based on the expected losses.

 

(Loan origination fees and costs)

·    Under IFRS, loan origination fees and costs that are incremental and directly attributable to the origination of a loan are deferred and thus, included in the calculation of the effective interest rate.

 

Deferred tax assets (Item 9)

·    Under IFRS, deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. For example, deferred tax assets for deductible temporary differences relating to impairment of financial instruments of which the timing of the reversal is difficult to estimate cannot be recognized under Japanese GAAP, whereas they can be recognized under IFRS to the extent that it is probable that future taxable profit will be available.

 




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