SMBC Group's Financial and Credit Portfolio slide image

SMBC Group's Financial and Credit Portfolio

Balance sheet Consolidated Loans JPY 102.4 tn (+JPY 4.0 tn) Domestic loans *1,2 JPY 61.6 tn JPY 176.2 tn (+JPY 4.4 tn) (vs Mar. 23) Domestic loans and deposits *1,2 Deposits Foreign currency NCD 4% Others 15% 4% Others 4 2% Loan to deposit ratio: 58.1% Securities Mortgage, etc. 15% Time 13% JPY 40.4 tn (+JPY 7.2 tn) Domestic deposits 2 JPY 123.3 tn Loans Deposits JGBs Foreign bonds JPY 9.5 tn JPY 19.1 tn NCD JPY 13.8 tn Prime-rate- based 2% Current 11% Others Spread-based 68% Ordinary 66% Others JPY150.8 tn (+JPY 12.0 tn) Cash and due Liquid from banks JPY 77.4 tn *2 JPY 59.5 tn account BoJ's current JPY103.7 tn (+JPY 17.8 tn) Total net assets JPY 13.8 tn (+JPY 1.0 tn) Total assets JPY 293.7 tn (+JPY 23.3 tn) Impact of interest rise in foreign currency Loan/deposit Most of the loans / deposits are based on market rate (A part of the deposits have low sensitivity to interest rate) Foreign bonds Unrealized losses will increase when government bond yields rise Floating rate Impact to net interest income from possible interest hike*5 Short-term rate Medium-to long term rate JPY +30 bn JPY +10 bn (1st year) JPY +50 bn in 5th year by repricing of fixed rate loans Profit from market operation is not included Cautious approach to additional JGB investment considering further rate hike <Assumption> Interest earnings on roll-overs improve while funding cost increases *1 Managerial accounting basis *2 Non-consolidated *3 Overdraft, foreign-currency-denominated, etc. *4 Sundry, etc. *5 Based on assumption of no change in balance sheet *6 Interest rate on basic balance of BOJ's current account remains unchanged at 0.10% Policy rate 0%*6 5 years rate 0.6% (Sep. 23) (0.1)% 0.34% 10 years rate 1.1% 0.77% Copyright © 2023 Sumitomo Mitsui Financial Group. All Rights Reserved. 16
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