Sumitomo Mitsui : Financial results for 1QFY2016

Financial Results for the Three Months Ended June 30, 2016 [Japanese GAAP] (Consolidated)

Stock exchange listings: Tokyo and Nagoya (Code: 8309)

URL: http://www.smth.jp/en/index.html

Representative: Kunitaro Kitamura, President

July 28, 2016

Contact: Kiyomitsu Asahi, Executive Officer, General Manager of Financial Planning Department TEL +81-3-3286-8354

Filing date of quarterly securities report (Shihanki Hokokusyo) (Scheduled): August 10, 2016 Specific trading accounts: Established

Dividend payment date: ―

Explanatory material: Prepared

Briefing on financial results: Not scheduled

(Amounts less than one million yen are rounded down.)

1. Consolidated Financial Results (for the Three Months Ended June 30, 2016)

2. Operating Results (%: Changes from the same period in the previous fiscal year)

   Ordinary Income	Ordinary Profit	Net Income Attributable to Owners of the Parent
   Three Months Ended	Millions of Yen %	Millions of Yen %	Millions of Yen %
   June 30, 2016	288,650 6.2	48,825 (27.0)	32,259 (23.6)
   June 30, 2015	271,758 (2.4)	66,855 1.1	42,220 7.4

   (Note) Comprehensive Income:

   Three months ended June 30, 2016 ¥(3,625) million, (－)%

   Three months ended June 30, 2015

   ¥69,649 million, (23.0)%

   Net Income per Share of Common Stock	Net Income per Share of Common Stock (Fully Diluted)
   Three Months Ended	Yen	Yen
   June 30, 2016	8.41	8.41
   June 30, 2015	10.93	10.93

3. Financial Position

4. Total Assets	Net Assets	Net Assets to Total Assets Ratio
   As of	Millions of Yen	Millions of Yen	%
   June 30, 2016	59,642,931	2,668,597	3.9
   March 31, 2016	58,229,948	2,704,511	4.1

   (Reference) Shareehhoolldders'' Equity:

   AAss ooff Juunnee 3300, 2016 ¥2,338,548 million As of March 31, 2016 ¥2,376,973 million

   (Notes) 1. Net Assets to Total Assets Ratio = (Net Assets - Subscription Rights to Shares - Non-Controlling Interests) / Total Assets

   2. The above Net Assets to Total Assets Ratio is different from the capital adequacy ratio prescribed in the notification of the Financial Services Agency with respect to the capital adequacy ratio.

5. Cash Dividends per Share of Common Stock

   Annual Cash Dividends per Share of Common Stock
   1st Quarter- End		2nd Quarter- End	3rd Quarter- End		Fiscal Year- End	Total
   Fiscal Year	Ended March 31, 2016 Ending March 31, 2017	― ―	Yen	Yen 6.50	―	Yen	Yen 6.50	Yen 13.00
   Ending March 31, 2017 (Forecast)		6.50	―		6.50	13.00

   (Note 1) Revision of latest announced estimates for cash dividends per share of common stock: None

   (Note 2) As announced on May 12, 2016, SuMi TRUST Holdings plans to exercise a share consolidation of each 10 shares of common stock into one share effective on October 1, 2016. However, annual cash dividends per share of common stock for the fiscal year ending March 31, 2017 (forecast), do not account for the share consolidation. Assuming that the share consolidation is exercised at the beginning of the fiscal year ending March 31, 2017, total annual cash dividends per share of common stock will be ¥130.

6. Consolidated Earnings Forecast (for the Fiscal Year Ending March 31, 2017)

   (%: Changes from the same period in the previous fiscal year)

   Ordinary Profit	Net Income Attributable to Owners of the Parent	Net Income per Share of Common Stock
   Six Months Ending September 30, 2016 Fiscal Year Ending March 31, 2017	Millions of Yen %	Millions of Yen %	Yen
   	120,000 (12.6)	80,000 (7.0)	20.80
   	255,000 (8.3)	170,000 1.9	44.21

   (Note 1) Revision of latest announced forecast of consolidated earnings: None

   (Note 2) As announced on May 12, 2016, SuMi TRUST Holdings plans to exercise a share consolidation of each 10 shares of common stock into one share effective on October 1, 2016. However, net income per share of common stock in consolidated earnings forecast for the fiscal year ending March 31, 2017, does not account for the share consolidation. Assuming that the share consolidation is exercised at the beginning of the fiscal year ending March 31, 2017, net income per share of common stock will be as follows:

   Six months ending September 30, 2016: ¥208.04; Fiscal year ending March 31, 2017: ¥442.08

   * Notes

7. Changes in Significant Subsidiaries during the Three Months Ended June 30, 2017: None

   (Changes in "specified subsidiaries" resulted in changes in the scope of consolidation)

8. Specific Accounting Treatments for the Preparation of the Quarterly Consolidated Financial Statements: Yes

   (For further details, please refer to "2. Matters Relating to Summary Information (Notes)" on page 3 of Accompanying Materials.)

9. Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

10. Changes in accounting policies due to the revision of accounting standards: Yes

11. Changes in accounting policies other than 1) above: None

12. Changes in accounting estimates: None

13. Restatements: None

14. (Note) For further details, please refer to "2. Matters Relating to Summary Information (Notes)" on page 3 of Accompanying Materials.

    As of June 30, 2016	3,903,486,408 shares	As of March 31, 2016	3,903,486,408 shares
    As of June 30, 2016	77,994,403 shares	As of March 31, 2016	57,991,784 shares
    For the three months ended June 30, 2016	3,836,471,681 shares	For the three months ended June 30, 2015	3,863,022,803 shares

15. Number of Shares Issued (Common Stock)

17. Number of shares issued (including treasury stock):

18. Number of treasury stock:

19. Average number of outstanding issued shares:

Statement Concerning the Status of the Quarterly Review Procedures

These consolidated financial results for the three months ended June 30, 2016 (the quarterly consolidated financial results), are out of the scope of the quarterly review procedures required by the Financial Instruments and Exchange Act. Therefore, the quarterly review procedures on the quarterly consolidated financial statements have not been completed at the time of disclosure of the quarterly consolidated financial results.

Explanation Concerning the Appropriate Use of the Forecasts for Results of Operations and Other Special Matters

The forecasts for results of operations presented in the quarterly consolidated financial results are based on the information currently available to SuMi TRUST Holdings and certain reasonable assumptions. Actual results may differ significantly from the forecasts due to various factors.

[Accompanying Materials]

Table of Contents

1. Qualitative Information Related to the Quarterly Consolidated Financial Statements	--------	2
(1) Qualitative Information Related to the Consolidated Results of Operations	--------	2
(2) Qualitative Information Related to the Consolidated Financial Position	--------	2
(3) Qualitative Information Related to the Consolidated Earnings Forecasts	--------	2
2. Matters Relating to Summary Information (Notes)	--------	3
(1) Specific Accounting Treatments for the Preparation of the Quarterly Consolidated Financial Statements	--------	3
(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements	--------	3
3. Consolidated Financial Statements	--------	4
(1) Consolidated Balance Sheets	--------	4
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	--------	6
Consolidated Statements of Income	--------	6
Consolidated Statements of Comprehensive Income	--------	7
(3) Notes on Going Concern Assumptions	--------	8
(4) Notes on Significant Changes in Total Shareholders' Equity	--------	8

1. Qualitative Information Related to the Quarterly Consolidated Financial Statements

1. Qualitative Information Related to the Consolidated Results of Operations

   For the three months ended June 30, 2016, "Net Business Profit before Credit Costs" decreased by ¥27.3 billion year on year to ¥49.8 billion. This was primarily due to decreases in "Net Interest Income and Related Profit" and "Net Other Operating Profit" caused mainly by decrease in market-related profit of Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST Bank).

   "Ordinary Profit" decreased by ¥18.0 billion year on year to ¥48.8 billion with increase in "Net Gains on Stocks" and "Net Income Attributable to Owners of the Parent" for the period decreased by ¥9.9 billion year on year to ¥

   32.2 billion.

   (Reference)

   SuMi TRUST Holdings (Consolidated)

   (Billions of Yen)

   Three Months Ended June 30, 2016	Changes from the Three Months Ended June 30, 2015	Three Months Ended June 30, 2015
   Net Business Profit Before Credit Costs	49.8	(27.3)	77.1
   Ordinary Profit	48.8	(18.0)	66.8
   Net Income Attributable to Owners of the Parent	32.2	(9.9)	42.2

   Credit Costs (expenses are in parentheses)	1.6	3.1	(1.5)
   Net Gains on Stocks	7.8	6.6	1.2

   SuMi TRUST Bank (Non-Consolidated)

   (Billions of Yen)

   Three Months Ended June 30, 2016	Changes from the Three Months Ended June 30, 2015	Three Months Ended June 30, 2015
   Gross Business Profit Before Credit Costs	87.5	(29.9)	117.4
   General and Administrative Expenses (expenses are in parentheses)	(56.2)	1.7	(58.0)
   Net Business Profit Before Credit Costs	31.2	(28.1)	59.4
   Ordinary Profit	32.8	(17.9)	50.7
   Net Income	24.4	(10.5)	34.9

   Credit Costs (expenses are in parentheses)	2.3	3.8	(1.4)
   Net Gains on Stocks	9.0	7.3	1.6

2. Qualitative Information Related to the Consolidated Financial Position

   As of June 30, 2016, consolidated "Total Assets" increased by ¥1,412.9 billion to ¥59,642.9 billion and consolidated "Total Net Assets" decreased by ¥35.9 billion to ¥2,668.5 billion from the end of the previous fiscal year.

   In particular, "Cash and Due from Banks" increased by ¥1,607.5 billion to ¥21,532.0 billion, "Loans and Bills Discounted" decreased by ¥147.9 billion to ¥27,377.9 billion, "Securities" decreased by ¥198.4 billion to ¥4,727.7 billion, and "Deposits" increased by ¥5,482.2 billion to ¥32,184.1 billion, compared with those as of the end of the previous fiscal year.

3. Qualitative Information Related to the Consolidated Earnings Forecasts

There are no changes to the consolidated earnings forecasts for the fiscal year ending March 31, 2017

("Ordinary Profit": ¥255.0 billion, "Net Income Attributable to Owners of the Parent": ¥170.0 billion), which were announced on May 12, 2016.