SMBC Group's Financial and Credit Portfolio
Cost control
Overhead ratio remains flat despite the increase in G&A expenses due to growth of top-line profit.
Accelerate base expense control initiatives to offset increase due to proactive investments.
Base expense control
Reduction
(JPY bn)
1,082.2
G&A expenses
962.6
Environmental factors: +39
Growth investment:
+16
Revenue-linked:
+25
Reform of domestic business
e.g.
8 STORES in 1H, aiming for 50 in FY3/24
Digitize wholesale businesses
810
Base
expenses*1
Change in
795
base expenses
Overhead ratio
59.0%
1H FY3/23
1H FY3/24
Base expense
Workload
JPY (12) bn
(1,700) people
JPY (5) bn
(800) people
JPY (6) bn
Group functions
e.g.
• Optimize headquarter operation
Integrate functions of SMCC and SMBCFS
Overseas operations
● Additional reduction measures
(850) people
JPY (1) bn
(50) people
59.5%
Investment
1H FY3/24
Base expense
Workload
1H FY3/24
+ JPY 27 bn
+2,100 people
Overseas personnel costs + JPY 15 bn IT investment + JPY 3 bn
Investment in strategic areas
● Progress ahead of schedule
*1 G&A expenses excl. cost related to investment for future growth, revenue-linked variable cost, impact from market
conditions and others
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