Sumitomo Mitsui Financial Group, Inc.

Business Details

This division primarily serves domestic large corporations and small-to-medium enterprises as its main customers, providing comprehensive corporate financial solutions centered on lending and fee income. Sumitomo Mitsui Banking Corporation acts as the primary provider, addressing a wide range of needs including financing for working capital and growth capital, FX & derivatives transactions, and securities-related business. The division captures diverse corporate needs arising from changes in the business environment and is expanding revenue through the twin engines of loan income and fee income.

Recent Overview

Consolidated net business profit reached ¥997,100 million, driven by increased domestic wholesale fee income and other factors

For the full year of FY2026 (ending March 2026) (FY2025), the Wholesale Business Division recorded consolidated gross profit of ¥1,253,400 million, operating expenses of ¥407,900 million, and consolidated net business profit of ¥997,100 million. In addition to an increase in domestic net interest income, growth in fee income from the domestic wholesale business drove performance. Note that prior-year comparative figures are not disclosed in the segment information of this financial results summary.

Key Products

Growth Drivers

• Expansion of loan balances due to increased demand for working capital and growth capital among domestic large corporations and SMEs
• Improvement in domestic lending yields amid rising interest rates
• Increased fee income from growing FX and derivatives hedging needs
• Expansion of fee income from M&A advisory, securities underwriting, etc. in the domestic wholesale business
• Acquisition of ancillary transactions through collaboration among multiple business divisions (collaborative revenue recognition under internal management accounting)
• Promotion of domestic business reforms under the Medium-Term Management Plan "Plan for Fulfilled Growth"

Risks

• Risk of increased credit-related costs due to deterioration in the domestic and overseas economic and financial environment (forward-looking provisions recorded in response to worsening Middle East conditions, etc.)
• Risk of increased funding costs and pressure on net interest income amid rising interest rates
• Risk of sluggish loan balance growth due to restrained capital expenditure or reduced funding demand among domestic large corporations and mid-sized companies
• Pressure on fee income due to intensifying competition with other banks, non-banks, and fintech companies
• Risk of deteriorating business conditions among client companies due to geopolitical risk and strengthened economic security measures