SMBC Group's Financial and Credit Portfolio
(Ref.) One-off impact in FY3/24
1 Received insurance of USD 710 mn in respect of aircraft previously leased to Russian airline.
2 Sold U.S. freight car leasing business to realize a more capital-efficiency business portfolio.
1①Insurance settlement of SMBCAC
34 aircraft lost in Russia (NBV USD 1.6 bn*1)
Total impairment
by Sep. 2023
Oct. 2023:
3Q
Impact on
bottom-line profit
JPY (81) bn*2
insurance settlement received
for 16 aircraft previously leased to Aeroflot
Impact on bottom-line profit +USD 311 mn *3
Insurance settlement: USD 710 mn
Aeroflot
NSK
Insurance
Lessor Litigation
Leasing of 16 aircraft
aircraft
SMBC
AC
Terminated
Russian
airlines
18 aircraft
Airline
Fleet
Insurers/
Reinsures
Fleet
Insurers
12 Sales of railcar leasing business
2013: Entered into railcar leasing business
• Acquired Flagship Rail Services and
renamed to SMBC Rail Services (SMBCRS)
2017 Acquired American Railcar Leasing
Aimed to expand business size
by acquiring more profitable railcars
3Q
Became a leading freight car leasing company in the U.S.
Changes in the business environment
and industry reorganization
have led SMBCRS to bear potential impairment risks
Strengthened regulation
2023
Decided to sell to ITE
• Improve capital efficiency
Shrinking margin
by reallocating resources to growth areas
Impact on *4
RWA
(CET1 ratio)
USD (2,900) mn
+4 bp
(7)bp
Loss for sales USD (560) mn
• Maximum impact of potential impairment
on bottom-line profit : USD (90) mn
*1 Before write-down *2 After netting security deposits *3 After netting impairment of NBV
*4 The amount of loss is calculated based on the SMBC RS net asset forecast at the time of agreement on transfer and is subject to change
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