Financial Results for the Three Months Ended June 30, 2015 [Japanese GAAP] (Consolidated)
Stock exchange listings: Tokyo and Nagoya (Code: 8309) URL: http://www.smth.jp/en/index.html Representative: Kunitaro Kitamura, President
July 30, 2015
Contact: Kiyomitsu Asahi, General Manager of Financial Planning Department
TEL +81-3-3286-8354
Filing date of quarterly securities report (Shihanki Hokokusyo) (Scheduled): August 13, 2015
Specific trading accounts: Established Dividend payment date: ― Explanatory material: Prepared
Briefing on financial results: Not scheduled
1. Consolidated Financial Results (for the Three Months Ended June 30, 2015)(Amounts less than one million yen are rounded down.)
(1) 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 June 30, 2015 June 30, 2014 | Millions of Yen % 271,758 (2.4) 278,331 (15.8) | Millions of Yen % 66,855 1.1 66,114 0.8 | Millions of Yen % 42,220 7.4 39,324 0.6 |
(Note) Comprehensive Income:
Three months ended June 30, 2015 ¥69,649 million, (23.0)%
Three months ended June 30, 2014
¥90,412 million, 101.8%
Net Income per Share of Common Stock | Net Income per Share of Common Stock (Fully Diluted) | |
Three Months Ended June 30, 2015 June 30, 2014 | Yen 10.93 10.07 | Yen 10.93 10.07 |
(2) Financial Position
(Reference) Shareholders'' Equity:
As of June 30, 2015 ¥2,430,810 million
As of March 31, 2015 ¥2,389,824 million
(Note) Net Assets to Total Assets Ratio = (Net Assets - Subscription Rights to Shares - Non-Controlling Interests) / Total Assets
2. Cash Dividends per Share of Common StockAnnual 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, 2015 Ending March 31, 2016 | Yen ― ― | Yen 5.50 | Yen ― | Yen 6.50 | Yen 12.00 |
Fiscal Year Ended March 31, 2015 Ending March 31, 2016 | Yen ― ― | ||||
Ending March 31, 2016 (Forecast) | 6.50 | ― | 6.50 | 13.00 |
(Note) Revision of latest announced estimates for cash dividends per share of common stock: None
3. Consolidated Earnings Forecast (for the Fiscal Year Ending March 31, 2016)(%: 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, 2015 Fiscal Year Ending March 31, 2016 | Millions of Yen % 130,000 (14.6) 270,000 (7.7) | Millions of Yen % 80,000 (4.5) 165,000 3.3 | Yen 20.71 42.71 |
(Note) Revision of latest announced forecast of consolidated earnings: None
* Notes
(1) Changes in Significant Subsidiaries during the Three Months Ended June 30, 2015: None
(Changes in "specified subsidiaries" resulted in changes in the scope of consolidation)
(2) 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 2 of Accompanying Materials.)
(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: Yes
3) Changes in accounting estimates: Yes
4) Restatements: None
(Sumitomo Mitsui Trust Bank, Limited ("SuMi TRUST Bank"), a subsidiary of SuMi TRUST Holdings, changed its depreciation method effective from the three months ended June 30, 2015, and this falls under "Changes in accounting policies that are difficult to distinguish from changes in accounting estimates." For further details, please refer to "2. Matters Relating to Summary Information (Notes)" on page 2 of Accompanying Materials.)
(4) Number of Shares Issued (Common Stock)
1) Number of shares issued (including treasury stock):
2) Number of treasury stock:
3) 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, 2015 (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 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.
Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
[Accompanying Materials] Table of Contents1. 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) | -------- | 2 |
(1) Specific Accounting Treatments for the Preparation of the Quarterly Consolidated Financial Statements | -------- | 2 |
(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements | -------- | 2 |
3. Consolidated Financial Statements | -------- | 3 |
(1) Consolidated Balance Sheets | -------- | 3 |
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | -------- | 5 |
Consolidated Statements of Income | -------- | 5 |
Consolidated Statements of Comprehensive Income | -------- | 6 |
(3) Notes on Going Concern Assumptions | -------- | 7 |
(4) Notes on Significant Changes in Total Shareholders' Equity | -------- | 7 |
(5) Notes on Significant Subsequent Events | -------- | 8 |
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Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
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, 2015, Net Business Profit before Credit Costs (Note) increased by ¥21.1 billion year on year to ¥77.1 billion. This was primarily due to increases in market-related revenues of Sumitomo Mitsui Trust Bank, Limited (SuMi TRUST Bank) and net fees and commissions in group companies.
Ordinary Profit increased by ¥0.7 billion year on year to ¥66.8 billion for the three months ended June 30, 2015, partly due to the dissappearance of reversing effects of total credit costs, which were included for the three months ended June 30, 2014.
Net Income Attributable to Owners of the Parent for the period increased by ¥2.8 billion year on year to ¥42.2 billion. This increase was due to a net effect of SuMi TRUST Bank's not posting banking IT system integration costs as Extraordinary Losses and disappearance of positive effects from the change in the example categories under the practical guidelines for tax effect accounting, both of which were recorded in the same period of the prior year, as well as the above mentioned factors.
(Note) For further details of Net Business Profit before Credit Costs, please refer to the "Explanatory Material / 1st Quarter of Fiscal Year Ending March 31, 2016."
(2) Qualitative Information Related to the Consolidated Financial Position
As of June 30, 2015, consolidated Total Assets increased by ¥1,292.0 billion to ¥47,527.9 billion and consolidated Total Net Assets increased by ¥44.1 billion to ¥2,761.0 billion from the end of the previous fiscal year.
In particular, Loans and Bills Discounted increased by ¥128.1 billion to ¥25,678.2 billion, Securities increased by
¥730.7 billion to ¥5,544.1 billion, and Deposits decreased by ¥160.1 billion to ¥24,919.5 billion from 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, 2016 (Ordinary Profit: ¥270.0 billion, Net
Income Attributable to Owners of the Parent: ¥165.0 billion), which were announced on May 13, 2015.
2. Matters Relating to Summary Information (Notes)(1) Specific Accounting Treatments for the Preparation of the Quarterly Consolidated Financial Statements
(Income tax expenses)
Income tax expenses of certain consolidated subsidiaries are calculated by reasonably estimating the effective tax rate based on the expected income before income tax (net of the effects of deferred taxes) for the fiscal year to which the three-month period pertains, and multiplying income before income tax for the three-month period by the estimated effective tax rate.
(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
(Changes in accounting policies)
SuMi TRUST Holdings applied the "Accounting Standard for Business Combinations" (Accounting Standard Board of Japan (ASBJ) Statement No. 21 of September 13, 2013), "Accounting Standard for Consolidated Financial Statements" (ASBJ Statement No. 22 of September 13, 2013), and the "Accounting Standard for Business Divestitures" (ASBJ Statement No. 7 of September 13, 2013) effective from the three months ended June 30, 2015.
Under these accounting standards, differences arising from changes in SuMi TRUST Holdings' ownership interests in its subsidiaries over which it retains control are recognized in Capital Surplus, and acquisition-related costs are expensed as incurred. For business combinations completed on or after the beginning of the three months ended June 30, 2015, the revised allocation of acquisition costs, due to the finalization of the tentative accounting treatment, is reflected in the quarterly consolidated financial statements for the period in which the business combination occurred. In addition, SuMi TRUST Holdings changed the presentation of Income before Income Taxes, and minority interests are now presented as non-controlling interests. The consolidated financial statements for the three months ended June 30, 2014, and for the previous fiscal year have been reclassified in order to reflect these changes in the presentation.
For the application of these accounting standards, SuMi TRUST Holdings adopted the transitional provisions in item (4), paragraph 58-2 of the Accounting Standard for Business Combinations, item (4), paragraph 44-5 of the Accounting Standard for Consolidated Financial Statements, and item (4), paragraph 57-4 of the Accounting Standard for Business Divestitures effective from the beginning of the three months ended June 30, 2015. There is no effect of these changes.
(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)
SuMi TRUST Bank changed its depreciation method for tangible fixed assets (excluding lease assets) from the declining-balance method to the straight-line method effective from the three months ended June 30, 2015, except for buildings (excluding their accompanying facilities) acquired on or after April 1, 1998, which are depreciated using the straight-line method.
This change was made as a result of reviewing the depreciation method for tangible fixed assets after the completion of the banking IT system integration, in consideration for future investment plans, such as renovation of clerical centers, opening of new branches, and consolidation of branches with redundant functions. SuMi TRUST Bank's tangible fixed assets are expected to be used continuously over a long term, leading to a conclusion that the straight-line method, under which expenses are evenly distributed through the asset's useful life in line with its actual usage, allows the appropriate presentation of profit and loss.
The effects of this change to Ordinary Profit and Income before Income Taxes for the three months ended June 30, 2015 are immaterial.
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Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
3. Consolidated Financial Statements
(1) Consolidated Balance Sheets
Assets:(Millions of Yen)
As of As of
March 31, 2015 June 30, 2015
Cash and Due from Banks 10,530,766 11,066,354
Call Loans and Bills Bought 205,075 167,041
Receivables under Resale Agreements 136,188 116,720
Receivables under Securities Borrowing Transactions 310,806 356,888
Monetary Claims Bought 794,838 587,146
Trading Assets 754,962 780,868
Money Held in Trust 1,619 1,699
Securities 4,813,354 5,544,105
Loans and Bills Discounted 25,550,064 25,678,238
Foreign Exchanges 12,732 10,958
Lease Receivables and Investment Assets 547,016 540,825
Other Assets 1,547,226 1,569,527
Tangible Fixed Assets 223,568 224,045
Intangible Fixed Assets 159,256 165,731
Assets for Retirement Benefits 190,706 193,511
Deferred Tax Assets 16,280 14,983
Customers' Liabilities for Acceptances and Guarantees 531,500 594,469
Allowance for Loan Losses (90,015) (85,146)
Deposits 25,079,711 24,919,548
Negotiable Certificates of Deposit 6,570,567 6,847,285
Call Money and Bills Sold 497,600 428,008
Payables under Repurchase Agreements 462,942 1,168,268
Payables under Securities Lending Transactions ― 14,276
Trading Liabilities 405,188 409,679
Borrowed Money 2,492,087 2,530,246
Foreign Exchanges 140 243
Short-Term Bonds Payable 974,317 1,196,135
Bonds Payable 1,026,113 956,105
Borrowed Money from Trust Account 3,983,261 4,202,966
Other Liabilities 1,279,123 1,281,323
Provision for Bonuses 16,312 4,453
Provision for Directors' Bonuses 230 60
Liabilities for Retirement Benefits 12,152 12,093
Provision for Reimbursement of Deposits 3,598 3,598
Provision for Contingent Losses 8,533 8,155
Deferred Tax Liabilities 172,271 186,660
Deferred Tax Liabilities for Land Revaluation 3,322 3,314
Acceptances and Guarantees 531,500 594,469
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Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
(Continued)
Net Assets:(Millions of Yen)
As of As of
March 31, 2015 June 30, 2015
Capital Stock 261,608 261,608
Capital Surplus 645,261 645,261
Retained Earnings 970,373 987,483
Treasury Stock (17,057) (17,074)
Valuation Differences on Available-for-Sale Securities 505,448 522,197
Deferred Gains (Losses) on Hedges (20,605) (15,760) Revaluation Reserve for Land (5,951) (5,942) Foreign Currency Translation Adjustments 14,953 17,361
Adjustments for Retirement Benefits 35,793 35,675
Subscription Rights to Shares 246 247
Non-Controlling Interests 326,902 330,018
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Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
(Millions of Yen)
For the Three Months Ended
June 30, 2014 June 30, 2015
Ordinary Income: 278,331 271,758
Trust Fees 26,059 25,895
Interest Income: 85,819 85,252
Interest on Loans and Discounts 62,590 64,428
Interest and Dividends on Securities 18,221 14,684
Fees and Commissions 73,514 80,867
Trading Income 4,321 4,393
Other Ordinary Income 67,763 67,581
Other Income 20,851 7,768
Ordinary Expenses: 212,216 204,903
Interest Expenses: 30,203 30,911
Interest on Deposits 16,420 14,201
Fees and Commissions Payments 17,355 19,327
Trading Expenses 18 49
Other Ordinary Expenses 61,412 47,619
General and Administrative Expenses 98,846 96,431
Other Expenses 4,380 10,563
Ordinary Profit 66,114 66,855
Extraordinary Income: 0 117
Gains on Disposal of Fixed Assets 0 117
Extraordinary Losses: 24,716 533
Losses on Disposal of Fixed Assets 467 255
Impairment Losses 129 278
Other Extraordinary Losses 24,119 ―
Income before Income Taxes 41,397 66,438
Income Taxes: (1,040) 20,923
Current 3,043 14,615
Deferred (4,083) 6,307
Net Income 42,438 45,515
Net Income Attributable to Non-Controlling Interests 3,113 3,295
Net Income Attributable to Owners of the Parent 39,324 42,220
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Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
Consolidated Statements of Comprehensive Income
For the Three Months Ended
(Millions of Yen)
June 30, 2014 June 30, 2015
Net Income 42,438 45,515
Other Comprehensive Income (Loss): 47,974 24,133
Valuation Differences on Available-for-Sale Securities 51,617 22,544
Deferred Gains (Losses) on Hedges (1,736) (33) Revaluation Reserve for Land ― 8
Foreign Currency Translation Adjustments (1,263) 2,182
Adjustments for Retirement Benefits 1,312 (114) Attributable to Equity-Method Affiliated Companies (1,955) (454)
Comprehensive Income: 90,412 69,649
(Breakdown)
Comprehensive Income Attributable to Owners of the Parent 87,284 66,112
Comprehensive Income Attributable to Non-Controlling Interests 3,128 3,536
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Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
(3) Notes on Going Concern Assumptions
There is no applicable information.
(4) Notes on Significant Changes in Total Shareholders' Equity
There is no applicable information.
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Sumitomo Mitsui Trust Holdings, Inc. (SuMi TRUST Holdings) Financial Results for the Three Months Ended June 30, 2015
(5) Notes on Significant Subsequent Events
(Repurchase of Own Shares)
The Board of SuMi TRUST Holdings' Directors resolved at the meeting held on July 30,2015 to repurchase its own shares pursuant to the provision of its Articles of Incorporation in accordance with Article 459, Paragraph 1 of the Companies Act of Japan.
1) Reason for Repurchase :SuMi TRUST Holdings will repurchase its own shares in order to improve shareholder return as well as capital efficiency.
2) Class of shares to be repurchased :Common stock of SuMi TRUST Holdings
3) Total number of shares to be repurchased :Up to 21,000,000 shares
4) Total amount of repurchase :Up to JPY 10,000,000,000
5) Repurchase period :From July 31, 2015 to September 30, 2015
6) Repurchase method :Market purchases on the Tokyo Stock Exchange based on a discretionary trading contract
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