[Company analysis] Sumitomo Mitsui Financial Group, Inc. (三井住友フィナンシャルグループ)

「Sumitomo Mitsui Financial Group, Inc. (三井住友フィナンシャルグループ)」is the fourth largest bank in Japan and 15th in the world in terms of total assets. In addition,  It is one of the three megabanks in Japan(「Mitsubishi UFJ Financial Group, Inc.(三菱UFJフィナンシャル・グループ)」,「Sumitomo Mitsui Financial Group, Inc.(三井住友フィナンシャルグループ)」and「Mizuho Financial Group, Inc.(みずほフィナンシャルグループ)」). The number of consolidated employees is approximately 87,659.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Sumitomo Mitsui Financial Group, Inc.
Company name (Japanese)	三井住友フィナンシャルグループ
Date of establishment	Monday, December 2, 2002
Headquarters location	〒100-0005 東京都千代田区丸の内一丁目1番2号
Capital	2,339,443
Consolidated sales	5,735,312
Consolidated operating profit	1,135,300
Consolidated total assets	203,659,146
Consolidated capital	11,451,611
Capital adequacy ratio	5.6%
Consolidated number of employees	87,659

 

 

 

2. Summary and Features

 
「Sumitomo Mitsui Financial Group」was established on April 1, 2001, through the business integration between 「Mitsui Bank(三井銀行)」and「Sumitomo Bank(住友銀行)」to improve their financial situation. In terms of annual net income, it is one of the largest company in Japanese bank industry can be compared with「Mitsubishi UFJ Financial Group」. Before the Subprime mortgage crisis, in project finance field, this company has the third largest sales in the world.

In Japan domestic banking market,「Sumitomo Mitsui Financial Group」has 2nd highest share and it is one of the greatest advantages. Even though there is gap between Top share bank, still they are surpassing「Mizuho Financial Group」. It is known for one of the three megabank in Japan, but in reality,「Mitsubishi UFJ」 and「Sumitomo Mitsui」are overpowered companred to others.

Another strength is their efficiency. 「Sumitomo Mitsui Financial Group」has an extremely low ratio of overall sales to expenses compared to other megabanks. For this reason, the profitability is relatively higher than other banks. As for the ROR(Return On Revenue), this company has the highest figures among the megabanks. It is said that the retail and investment banking sectors are particularly strong.

In addition,「Sumitomo Mitsui Financial Group」is famous for their conservative capital management. Their capital volume itself is top-class among the megabanks, but the number of branches is relatively small. Compared to 767 branches of「Mitsubishi UFJ」and 470 branches of「Mizuho」, 「Sumitomo Mitsui」has only 437 brances. ​​According to the above tendency, oversea expansion is comparatively weaker than competitors.

As an aside, the relationship between「Sumitomo Mitsui Trust Holdings」and「Sumitomo Mitsui Financial Group」is not so good.  Although both companies conduct some cooperation on an individual business level, there is no affiliated service at all. Even「Sumitomo Mitsui Financial Group」operates a separate trust bank called「SMBC Trust Bank」which is a direct competitor of「Sumitomo Mitsui Trust Bank」. Regarding the withdrawal of「City Bank」from Japan,「Sumitomo Mitsui Trust Holdings」purchased credit card division of the「City Bank」for about ¥ 40 billion and strengthened its own credit card division. Meanwhile,「Sumitomo Mitsui Financial Group」purchased the retail division of「City Bank」through「SMBC Trust Bank」and strengthened its own trust division. In other words, they are expanding their business in the direction of a head-on collision between the two!

 

 

 

3. Major Business

 

■ Bank business

 

 

 

4. Financial information

 

※Unit is JPY million

	2016	2017	2018
Consolidate revenue	5,133,245	5,764,172	5,735,312
Consolidate gross income	1,005,855	1,164,113	1,135,300
Consolidated total assets	197,791,611	199,049,128	203,659,146
Consolidated net assets	11,234,286	11,612,892	11,451,611