Explanatory Material
2nd Quarter of Fiscal Year 2015 ended on Sep. 30, 2015
Summary of 1HFY2015 financial results | |||
1. | Financial results | --------- | Summary 1-3 |
2. | Financial conditions | --------- | Summary 3-5 |
3. | Forecast for FY2015 | --------- | Summary 5 |
Financial figures | |||
1. | Status of profit and loss | --------- | 1-2 |
2. | Breakdown of profit by business group | --------- | 3-4 |
3. | Major subsidiaries | --------- | 5 |
4. | Yields and margins | --------- | 6 |
5. | Net gains on securities | --------- | 6 |
6. | Unrealized gains/ losses on investment securities | --------- | 7-8 |
7. | Maturity ladder of securities | --------- | 9 |
8. | Shareholdings | --------- | 9 |
9. | Deferred unrealized gains/ losses of derivative transactions qualified for hedge accounting | --------- | 9 |
10. | BIS capital adequacy ratio (Basel III, international standard) | --------- | 10-11 |
11. | Return on equity (ROE) | --------- | 11 |
12. | Loans and Deposits (Banking a/c and principal guaranteed trust a/c combined) | --------- | 12 |
13. | Loans (Banking a/c and principal guaranteed trust a/c combined) | --------- | 13 |
14. | Problem assets based on the Financial Reconstruction Act | --------- | 14-15 |
(Banking a/c and principal guaranteed trust a/c combined) | |||
15. | Self-Assessment and problem assets based on the Financial Reconstruction Act | --------- | 15 |
(Banking a/c and principal guaranteed trust a/c combined) | |||
16. | Allowance for loan losses | --------- | 16 |
17. | Final disposal of non-performing loans (Banking a/c and principal guaranteed trust a/c combined) | --------- | 17 |
18. | Retirement benefits | --------- | 18 |
19. | Deferred tax assets | --------- | 19 |
Other referential financial figures of SuMi TRUST Bank | --------- | 20-22 | |
Sumitomo MitsuiTrust Holdings (Consolidated): 'SuMi TRUST Holdings'or'Consolidated' Sumitomo Mitsui Trust Bank (Non-consolidated): 'SuMi TRUST Bank' or 'Non-Consolidated' | |||
Legal Disclaimer | |||
Regarding forward-looking Statements contained in this material This presentation material contains information that constitutes forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors including but not limited to changes in managerial circumstances. By virtue of the aforementioned reasons, Sumitomo Mitsui Trust Holdings, Inc. hereby cautions against sole reliance on such forward-looking statements in making investment decisions. |
Summary of 1HFY2015 financial results | |||||
1. Financial Results | |||||
posted in 1HFY2014 in SuMi TRUST Bank. | |||||
[Consolidated] | (Billions of Yen) | ||||
1HFY2015 | 1HFY2014 | Change | Forecast for 1HFY2015 | ||
Net business profit before credit costs (*1) | 1 | 156.7 | 147.0 | 9.7 | 150.0 |
Ordinary profit | 2 | 137.2 | 152.3 | (15.0) | 130.0 |
Net income attributable to owners of the parent | 3 | 86.0 | 83.7 | 2.2 | 80.0 |
Total credit costs | 4 | 0.0 | 14.5 | (14.5) | (10.0) |
Net gains on stocks | 5 | (1.5) | 10.9 | (12.4) | |
Return (Net income) on shareholders' equity | 6 | 9.09% | 8.99% | 0.10% | |
(Difference from non-consolidated financial results) (*2) | |||||
Net business profit before credit costs | 7 | 35.9 | 35.4 | 0.4 | |
Net income attributable to owners of the parent (*3) | 8 | 16.9 | 15.4 | 1.5 | |
Total credit costs | 9 | 0.1 | 1.4 | (1.2) | |
Net gains on stocks | 10 | (0.0) | (0.3) | 0.3 | |
(*1) Consolidated net business profit before credit costs = Non-consolidated net business profit before credit costs + Ordinary profits of other subsidiary companies | |||||
(non-recurring effect adjusted) + Ordinary profits of affiliates (non-recurring effect adjusted) x Ratio of equity holdings - Intra-group transaction (dividends, etc.) | |||||
(*2) Differences between 'Consolidated (SuMi TRUST Holdings)' and 'Non-consolidated (SuMi TRUST Bank)' | |||||
(*3) Differences between 'Net income attributable to owners of the parent' in '' and 'Net income' in ''. | |||||
| |||||
[Non-consolidated] | (Billions of Yen) | ||||
1HFY2015 | 1HFY2014 | Change | Forecast for 1HFY2015 | ||
Gross business profit | 11 | 239.7 | 236.3 | 3.3 | |
Net interest income and related profit | 12 | 115.6 | 115.0 | 0.6 | |
Net fees and commissions and related profit | 13 | 98.7 | 95.5 | 3.2 | |
Net trading profit | 14 | 8.4 | 15.0 | (6.6) | |
Net other operating profit | 15 | 16.8 | 10.7 | 6.1 | |
Net gains on bonds | 16 | 13.5 | 20.5 | (7.0) | |
Net gains from derivatives other than for trading or hedging | 17 | (2.0) | (11.3) | 9.3 | |
General and administrative expenses | 18 | (118.8) | (124.8) | 5.9 | |
Net business profit before credit costs | 19 | 120.8 | 111.5 | 9.2 | 115.0 |
Net non-recurring profit | 20 | (19.1) | 6.4 | (25.5) | |
Banking a/c credit costs | 21 | (2.3) | (0.1) | (2.1) | |
Reversal of allowance for loan losses, etc. | 22 | 2.2 | 13.2 | (11.0) | |
Net gains on stocks | 23 | (1.4) | 11.3 | (12.8) | |
Others | 24 | (17.5) | (18.0) | 0.4 | |
Ordinary profit | 25 | 101.6 | 117.9 | (16.3) | 95.0 |
Extraordinary profit/ loss | 26 | (0.6) | (46.8) | 46.1 | |
IT system integration costs | 27 | - | (46.6) | 46.6 | |
Income before income taxes | 28 | 100.9 | 71.1 | 29.8 | |
Total income taxes | 29 | (31.9) | (2.8) | (29.0) | |
Net income | 30 | 69.0 | 68.3 | 0.7 | 65.0 |
Total credit costs | 31 | (0.1) | 13.1 | (13.2) | (10.0) |
Overhead ratio (-18 / 11) | 32 | 49.60% | 52.80% | (3.20%) |
(For reference) Overview of business operation | |||||||
(1) Balance of major accounts (Banking a/c and Principal guaranteed trust a/c combined) | |||||||
[Non-consolidated] | (Billions of Yen) | ||||||
Sep. 2015 (1HFY2015) | Mar. 2015 (FY2014) | Change from Mar. 2015 | |||||
(Ending balance) | 1 | 26,380.1 | 25,894.3 | 485.7 | |||
Loans and bills discounted | |||||||
(Average balance) | 2 | 25,505.6 | 24,498.7 | 1,006.9 | |||
(Ending balance) | 3 | 27,703.4 | 26,469.5 | 1,233.8 | |||
(Average balance) | 4 | 26,557.7 | 25,572.4 | 985.2 | |||
(*1) Deposits: Excluding NCD | |||||||
(2) Yields and margins (Domestic Banking a/c) | |||||||
[Non-consolidated] | (%) | ||||||
1HFY2015 (A) | 2HFY2014 (B) 1HFY2014 | Change from 2HFY2014 (A) - (B) | |||||
Loan deposit margin | 5 | 0.65 | 0.68 | 0.69 | (0.03) | ||
Loans and bills discounted | 6 | 0.86 | 0.91 | 0.95 | (0.05) | ||
Deposits | 7 | 0.21 | 0.23 | 0.26 | (0.02) | ||
(3) Status of loans (Banking a/c and Principal guaranteed trust a/c combined) | |||||||
[Non-consolidated] | (Billions of Yen) | ||||||
Sep. 2015 | Mar. 2015 | Change from Mar. 2015 | |||||
Loans to individuals | 8 | 7,650.7 | 7,564.2 | 86.5 | |||
Residential mortgage loans | 9 | 7,153.8 | 7,076.2 | 77.6 | |||
Loans to corporations | 10 | 18,729.3 | 18,330.1 | 399.2 | |||
Overseas Japanese borrowers | 11 | 3,128.0 | 2,979.6 | 148.4 | |||
Non-Japanese borrowers | 12 | 3,147.3 | 2,924.7 | 222.5 | |||
(1) Sales volume and sales balance of investment trust/ insurance | |||||||
[Non-consolidated] | |||||||
(Billions of Yen) | |||||||
1HFY2015 (A) | 2HFY2014 (B) | 1HFY2014 (C) | Change fm Change fm 2HFY2014 1HFY2014 (A) - (B) (A) - (C) | ||||
Total | 13 | 1,007.7 | 1,167.9 | 1,059.3 | (160.1) | (51.5) | |
Investment trust | 14 | 619.9 | 791.4 | 716.8 | (171.5) | (96.8) | |
Fund wrap, SMA | 15 | 207.9 | 204.5 | 186.5 | 3.3 | 21.3 | |
Insurance | 16 | 179.9 | 171.9 | 155.9 | 8.0 | 23.9 | |
(Billions of Yen) | |||||||
Sep. 2015 | Mar. 2015 | Change from Mar. 2015 | |||||
Total | 17 | 5,653.1 | 5,837.3 | (184.1) | |||
Investment trust | 18 | 2,625.4 | 2,814.0 | (188.6) | |||
Fund wrap, SMA | 19 | 841.4 | 741.2 | 100.2 | |||
Insurance | 20 | 2,186.2 | 2,282.0 | (95.7) | |||
(2) Fees and commissions | |||||||
[Non-consolidated] | (Billions of Yen) | ||||||
1HFY2015 | 1HFY2014 | Change from 1HFY2014 | |||||
Total | 21 | 33.7 | 31.0 | 2.7 | |||
Sales fees of investment trust/ insurance | 22 | 18.3 | 19.5 | (1.1) | |||
Administration fees | 23 | 15.3 | 11.4 | 3.8 |
Deposits, Trust principal (*1)
distributed by |