Sumitomo Mitsui Financial Group reported a 33% year-on-year jump in first-quarter profit for the financial year ending March 2027, with robust loan demand and higher net interest income following recent rate moves the principal contributors to the result. Profit attributable to owners of parent rose to ¥501,372 million.
Consolidated gross profit for the three months to end-June came in at ¥1,403,446 million, up ¥315.7 billion year on year, according to the group's quarterly earnings release. SMFG attributed the rise in gross profit to higher net interest income in the domestic market, higher fee income in its domestic wholesale business and good performance in wealth management, payments and consumer finance.
RATE NORMALISATION FILTERS THROUGH
Net interest income rose 26% year on year to ¥791,890 million, a central driver of the first-quarter uplift. SMFG said net interest income increased on loan growth and higher interest rates, with domestic income from loans and deposits at Sumitomo Mitsui Banking Corporation rising on an improved loan-to-deposit spread.
Reuters attributed the profit jump to robust loan demand.
CREDIT COSTS AND FORECAST
Ordinary profit rose 43.4% to ¥693,136 million, and total credit cost was ¥74.8 billion, which SMFG said was in line with its full-year forecast, while Middle East-related risks had not yet materialised.
The group left its full-year forecast for profit attributable to owners of parent unchanged at ¥1.7 trillion; first-quarter profit represented 29% of that target.
SMFG left its dividend forecast unchanged and is implementing a two-for-one stock split with a record date of 30 September 2026.