Sumitomo Mitsui Trust : Explanatory Material for 1HFY2023 (1,148KB)

Explanatory Material

1st Half of Fiscal Year 2023 ended on Sep. 30, 2023

	Table of Contents
Financial figures
1.	Status of profit and loss---------	1-2
2.	Breakdown of profit by business group---------	3
3.	Yields and margins---------	4
4.	Net gains on securities---------	4
5.	Unrealized gains/ losses on investment securities---------	5-6
6.	Maturity ladder of securities---------	7
7.	Shareholdings---------	7
8.	Deferred unrealized gains/ losses of derivative transactions qualified for hedge accounting ---------	7
9.	BIS capital adequacy ratio (Basel III, international standard)---------	8-9
10.	Return on equity (ROE)---------	9
11.	Loans and Deposits (Banking a/c and principal guaranteed trust a/c combined)---------	10
12.	Loans (Banking a/c and principal guaranteed trust a/c combined)---------	11
13.	Non-Performing Loans (NPLs) based on Banking Act and Reconstruction Act---------	12-13
	(Banking a/c and principal guaranteed trust a/c combined)
14.	Self-Assessment and Non-Performing Loans (NPLs) based on Banking Act and Reconstruction Act ---------	13
	(Banking a/c and principal guaranteed trust a/c combined)
15.	Allowance for loan losses---------	14
16.	Final disposal of non-performing loans (Banking a/c and principal guaranteed trust a/c combined) ---------	15
17.	Retirement benefits---------	16
18.	Deferred tax assets---------	17
Other referential financial figures of SuMi TRUST Bank---------	18-20

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.

Sumitomo Mitsui Trust Holdings, Inc.

Financial figures

1. Status of profit and loss

[Consolidated]				(Millions of yen)
			1HFY2023	1HFY2022	Change
Consolidated gross business profit (*1)	1	392,120	373,961	18,159
	Consolidated gross business profit	2	392,120	373,961	18,159
	(after written-off of principal guaranteed trust a/c) (1 + 20)
	Net interest income and related profit	3	(25,862)	107,724	(133,586)
	Net interest income	4	(36,636)	97,718	(134,354)
	Trust fees from principal guaranteed trust a/c	5	10,773	10,006	767
	(before written-off of principal guaranteed trust a/c)
		205,574
	Net fees and commissions and related profit	6	198,638	6,936
	Net fees and commissions	7	159,382	153,819	5,562
	Other trust fees	8	46,192	44,818	1,374
	Net trading profit	9	(8,634)	(31,735)	23,100
	Net other operating profit	10	221,043	99,334	121,708
	Net gains on foreign exchange transactions	11	189,435	82,299	107,135
	Net gains on bonds	12	(2,392)	(24,813)	22,421
	Net gains from derivatives other than for trading or hedging	13	22,870	30,764	(7,894)
General and administrative expenses	14	(246,071)	(224,787)	(21,284)
	(excluding amortization of goodwill)	15	(242,413)	(220,837)	(21,575)
	Personnel expenses	16	(111,587)	(102,948)	(8,639)
	Non-personnel expenses excluding taxes	17	(127,918)	(115,132)	(12,786)
	Taxes other than income taxes	18	(6,565)	(6,706)	141
Provision of general allowance for loan losses	19	-	4,590	(4,590)
Principal guaranteed trust a/c credit costs	20	-	-	-
Banking a/c credit costs	21	(4,257)	(14,216)	9,959
	Written-off of loans	22	(4,257)	(1,101)	(3,155)
	Provision of specific allowance for loan losses	23	-	(13,045)	13,045
	Losses on sales of loans	24	-	(69)	69
Reversal of allowance for loan losses	25	2,098	-	2,098
Recoveries of written-off claims	26	426	726	(299)
Net gains on stocks	27	(95,495)	(2,510)	(92,984)
	Losses on devaluation of stocks	28	(1,283)	(2,439)	1,156
Net income from affiliates by equity method	29	7,959	9,675	(1,716)
Others	30	(5,206)	(2,319)	(2,887)
Ordinary profit	31	51,574	145,119	(93,544)
Extraordinary profit	32	3,062	(636)	3,698
	Impairment loss on fixed assets	33	(200)	(258)	58
	Impairment loss on fixed assets	34	(1,425)	(377)	(1,047)
	Other (*2)	35	4,688	-	4,688
Income before income tax	36	54,637	144,483	(89,846)
Total income taxes	37	(10,129)	(39,905)	29,775
	Income taxes-current	38	(6,370)	(20,588)	14,218
	Income taxes-deferred	39	(3,758)	(19,316)	15,557
Net income	40	44,507	104,578	(60,070)
Net income attributable to non-controlling interests	41	(444)	(546)	101
Net income attributable to owners of the parent	42	44,063	104,032	(59,968)
Total credit costs (19 + 20 + 21 + 25 + 26)	43	(1,731)	(8,899)	7,168

(*1) Consolidated gross business profit = Trust fees + (Interest income - Interest expenses) + (Fees and commissions - Fees and commissions payments) + (Trading income - Trading expenses) + (Other operating income - Other operating expenses)

(*2) Gains on sales of stocks of subsidiaries and affiliates.
Consolidated net business profit before credit costs (*3)	44	166,321	168,233	(1,911)

(*3) 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.)

(Reference) Major components of "Consolidated net business profit before credit costs" <44>, in which gross income and expense from the affiliates are taken into consideration for managerial accounting, are shown in the table below.

Substantial consolidated gross business profit	45	428,411	408,519	19,892
Substantial net fees and commissions and related profit	46	226,509	217,527	8,982
Substantial general and administrative expenses	47	(262,090)	(240,286)	(21,804)
Consolidated Fee income ratio	48	52.8%	53.2%	(0.4%)
non-consolidated financial results	(*4)>
Net business profit before credit costs	49	14,145	42,101	(27,956)
Net income attributable to owners of the parent (*5)	50	(4,852)	21,611	(26,464)
Total credit costs	51	(1,041)	19	(1,060)
Net gains on stocks	52	1,537	(2,005)	3,543
(*4) Differences between "Consolidated" and "Non-consolidated".
(*5) Differences between "Net income attributable to owners of the parent" in "Consolidated" and "Net income" in "Non-consolidated".
		Sep. 2023	Mar. 2023	Change
Consolidated subsidiaries		59	58	1
Affiliates (subject to the equity method)		30	30	-

1

Sumitomo Mitsui Trust Holdings, Inc.

[Non-consolidated]

					(Millions of yen)
			1HFY2023	1HFY2022	Change
Gross business profit	1	294,307	254,915	39,392
	Gross business profit	2	294,307	254,915	39,392
	(after written-off of principal guaranteed trust a/c) (1 + 24)
	Net interest income and related profit	3	(376)	110,190	(110,567)
	Net interest income	4	(11,150)	100,184	(111,334)
	Domestic	5	109,476	87,622	21,854
	International	6	(120,626)	12,562	(133,188)
	Trust fees from principal guaranteed trust a/c	7	10,773	10,006	767
	(before written-off of principal guaranteed trust a/c)
	Net fees and commissions and related profit	8	94,425	90,866	3,559
	Net fees and commissions	9	48,233	46,048	2,184
	Other trust fees	10	46,192	44,818	1,374
	Net trading income	11	(8,634)	(31,735)	23,100
	Net other operating profit	12	208,892	85,593	123,299
	Net gains on foreign exchange transactions	13	187,628	84,015	103,612
	Net gains on bonds	14	(2,776)	(25,879)	23,102
	Net gains from derivatives other than for trading or hedging	15	25,157	28,051	(2,893)
General and administrative expenses	16	(142,131)	(128,782)	(13,348)
	Personnel expenses	17	(64,222)	(58,602)	(5,620)
	Non-personnel expenses	18	(73,696)	(65,675)	(8,020)
	Taxes other than income taxes	19	(4,212)	(4,504)	292
Net business profit before credit costs (1 + 16)	20	152,176	126,132	26,044
	Core net operating profit (20-14)	21	154,952	152,011	2,941
	Core net operating profit (excluding gains/(losses) on cancellation of investment)	22	154,490	150,010	4,479
Provision of general allowance for loan losses	23	-	4,316	(4,316)
Principal guaranteed trust a/c credit costs	24	-	-	-
Net business profit	25	152,176	130,448	21,727
Net non-recurring profit	26	(105,131)	(20,568)	(84,562)
	Banking a/c credit costs	27	(4,148)	(13,681)	9,532
	Written-off of loans	28	(4,148)	(994)	(3,154)
	Provision of specific allowance for loan losses	29	-	(12,617)	12,617
	Losses on sales of loans	30	-	(69)	69
	Reversal of allowance for loan losses	31	3,170	-	3,170
	Recoveries of written-off claims	32	287	445	(158)
	Net gains on stocks	33	(97,032)	(504)	(96,527)
	Losses on devaluation of stocks	34	(2,275)	(1,508)	(766)
	Others	35	(7,408)	(6,828)	(579)
	Amortization of net actuarial losses/ prior service cost	36	(2,380)	(1,919)	(461)
	Provision for contingent loss	37	(148)	357	(505)
	Losses on investment in partnerships	38	(5,426)	(4,796)	(630)
	Net gains on stock related derivatives	39	3,083	3,817	(733)
Ordinary profit	40	47,044	109,879	(62,834)
Extraordinary profit	41	1,040	(547)	1,588
	Net gains on disposal of fixed assets	42	(181)	(213)	31
	Impairment loss on fixed assets	43	(1,358)	(333)	(1,024)
	Other	44	2,581	-	2,581
Income before income taxes	45	48,085	109,331	(61,246)
Total income taxes	46	829	(26,911)	27,741
	Income taxes-current	47	4,942	(7,561)	12,503
	Income taxes-deferred	48	(4,112)	(19,350)	15,237
Net income	49	48,915	82,420	(33,504)
Total credit costs (23 + 24 + 27 + 31 + 32)	50	(690)	(8,919)	8,228
Overhead ratio (-16/1)	51	48.29%	50.52%	(2.23%)

2

Sumitomo Mitsui Trust Holdings, Inc.

2. Breakdown of profit by business group

(1) Gross business profit

[Non-consolidated]

				(Billions of yen)
		1HFY2023	1HFY2022	Change
Retail Business	69.2	65.8	3.3
Corporate Business (*1)	91.2	80.4	10.8
Investor Services Business (*1)	57.7	58.7	(0.9)
Real Estate Business (*1)	14.4	18.2	(3.7)
Global Markets Business	43.6	40.9	2.7
Fees paid out for outsourcing (*2)	(28.1)	(25.6)	(2.5)
	Corporate Business related	(8.1)	(6.2)	(1.9)
	Investor Services Business related	(19.9)	(19.3)	(0.6)
Others (*1), (*3)	45.9	16.2	29.7
Gross business profit	294.3	254.9	39.3

(*1) Changed the attribution segment for gains/losses on some equity investment and other methods since the beginning of this fiscal year.

(*2) "Corporate Business related" is related to stock transfer agency services and "Investor Services Business related" is related to asset adminisitration and asset management, etc.

(*3) Figures for "Others" include costs of capital funding, dividends of shares for cross-shareholdings, general and administrative expenses of headquarters, etc.

1. Net business profit before credit costs
   [Consolidated]

				(Billions of yen)
		1HFY2023	1HFY2022	Change
Retail Business	20.9	21.6	(0.6)
Corporate Business (*1)	73.5	67.5	6.0
Investor Services Business (*1)	29.9	29.5	0.4
Re	al Estate Business (*1)	13.1	16.8	(3.6)
Global Markets Business	34.7	33.7	1.0
Asset Management Business (*2)	9.7	13.2	(3.5)
Others (*1), (*3)	(15.7)	(14.2)	(1.4)
Net business profit before credit costs	166.3	168.2	(1.9)

(*1) Changed the attribution segment for gains/losses on some equity investment and other methods since the beginning of this fiscal year.

(*2) Figures for "Asset Management Business" are combined total of asset management companies (SuMi TRUST AM (consolidated), Nikko AM (consolidated),

(*2) Sky Ocean Asset Management, JP Asset Management.)

(*3) Figures for "Others" include costs of capital funding, dividends of shares for cross-shareholdings, general and administrative expenses of headquarters,

(*3) contribution of group companies, etc.

[Non-consolidated]

				(Billions of yen)
		1HFY2023	1HFY2022	Change
Retail Business	10.6	10.1	0.5
Corporate Business (*1)	58.5	53.0	5.5
Investor Services Business (*1)	19.6	23.3	(3.7)
Re	al Estate Business (*1)	8.9	13.2	(4.3)
Global Markets Business	34.7	33.7	1.0
Others (*1), (*2)	19.6	(7.3)	27.0
Net business profit before credit costs	152.1	126.1	26.0

(*1) Changed the attribution segment for gains/losses on some equity investment and other methods since the beginning of this fiscal year.

(*2) Figures for "Others" include costs of capital funding, dividends of shares for cross-shareholdings, general and administrative expenses of headquarters, etc.

3

Sumitomo Mitsui Trust Holdings, Inc.

3. Yields and margins

(1) Domestic banking a/c [Non-consolidated]

				(%)
	1HFY2023	2HFY2022	1HFY2022	Change from
	2HFY2022
Average yield on interest-earning assets (A)	0.58	0.55	0.50	0.03
Loans and bills discounted (B)	0.63	0.62	0.64	0.01
Securities	2.97	2.54	1.43	0.43
Average yield on interest-bearing liabilities (C)	0.12	0.12	0.13	0.00
Deposits (D)	0.05	0.05	0.05	(0.00)
Gross margin (A) - (C)	0.46	0.43	0.37	0.03
Loan-deposit margin (B) - (D)	0.58	0.57	0.59	0.01

1. Domestic banking a/c and principal guaranteed trust a/c combined
   [Non-consolidated]

				(%)
	1HFY2023	2HFY2022	1HFY2022	Change from
	2HFY2022
Average yield on interest-earning assets (A)	0.58	0.55	0.50	0.03
Loans and bills discounted (B)	0.64	0.62	0.64	0.02
Securities	2.97	2.54	1.43	0.43
Average yield on interest-bearing liabilities (C)	0.08	0.08	0.08	0.00
Deposits and Trust Principal (D)	0.04	0.04	0.05	(0.00)
Gross margin (A) - (C)	0.50	0.47	0.42	0.03
Loan-deposit margin (B) - (D)	0.60	0.58	0.59	0.02

4. Net gains on securities [Consolidated]

			(Millions of yen)
		1HFY2023	1HFY2022	Change
Net gains on bonds	(2,392)	(24,813)	22,421
	Gains on sales of bonds	1,543	1,410	133
	Gains on redemption of bonds	0	-	0
	Losses on sales of bonds	(3,936)	(26,215)	22,279
	Losses on redemption of bonds	(0)	(6)	6
	Losses on devaluation of bonds	-	(1)	1
Net gains on stocks	(95,495)	(2,510)	(92,984)
	Gains on sales of stocks	74,402	18,924	55,478
	Losses on sales of stocks	(168,614)	(18,995)	(149,619)
	Losses on devaluation of stocks	(1,283)	(2,439)	1,156
[Non-consolidated]
			(Millions of yen)
		1HFY2023	1HFY2022	Change
Net gains on bonds	(2,776)	(25,879)	23,102
	Gains on sales of bonds	1,039	287	752
	Gains on redemption of bonds	0	-	0
	Losses on sales of bonds	(3,816)	(26,165)	22,349
	Losses on redemption of bonds	-	-	-
	Losses on devaluation of bonds	-	(1)	1
Net gains on stocks	(97,032)	(504)	(96,527)
	Gains on sales of stocks	73,838	19,868	53,969
	Losses on sales of stocks	(168,596)	(18,865)	(149,730)
	Losses on devaluation of stocks	(2,275)	(1,508)	(766)

4

Sumitomo Mitsui Trust Holdings, Inc.

5. Unrealized gains/ losses on investment securities

1. Securities with fair value [Consolidated]

														(Millions of yen)
					Sep. 2023					Mar. 2023		Change
				Cost	Net	Unrealized	Unrealized				Cost	Net		Cost	Net
				gains	losses
Available-for-sale securities (*1)	6,695,071	502,790	735,482	(232,691)				5,675,353	372,689	1,019,717	130,101
	Japanese stocks (*2)	511,859	670,818	678,472	(7,653)				495,423	577,205		16,435	93,613
	Japanese bonds	2,622,088	(9,327)	2,588	(11,916)				2,178,588	(364)	443,500	(8,963)
		Government bonds	1,854,845	(7,767)	45	(7,812)				1,433,514	(1,514)	421,331	(6,252)
		Local government bonds	41,532	(809)	3	(812)				38,572	(454)	2,960	(355)
		Corporate bonds	725,711	(750)	2,540	(3,291)				706,502	1,605		19,208	(2,355)
	Others	3,561,123	(158,699)	54,421	(213,121)				3,001,341	(204,151)	559,781	45,451
Held-to-maturity securities	315,545	8,166	8,617	(451)				299,219	9,997	16,325	(1,831)
(*1) Not include stocks with no market price and investment partnership etc.
(*2) Fair value of listed stocks included in "Available-for-sale securities" is determined based on the quoted market price over the consolidated balance sheet date.

[Non-consolidated]

													(Millions of yen)
					Sep. 2023				Mar. 2023		Change
				Cost	Net	Unrealized	Unrealized			Cost	Net		Cost	Net
				gains	losses
Available-for-sale securities (*1)	6,531,564	514,113	744,356	(230,242)	5,522,549	386,238	1,009,014	127,875
	Japanese stocks (*2)	487,510	691,795	697,714	(5,919)		471,652	598,358		15,858	93,436
	Japanese bonds	2,622,088	(9,327)	2,588	(11,916)	2,178,588	(364)	443,500	(8,963)
		Government bonds	1,854,845	(7,767)	45	(7,812)	1,433,514	(1,514)	421,331	(6,252)
		Local government bonds	41,532	(809)	3	(812)	38,572	(454)	2,960	(355)
		Corporate bonds	725,711	(750)	2,540	(3,291)		706,502	1,605		19,208	(2,355)
	Others	3,421,965	(168,353)	44,052	(212,406)		2,872,308	(211,756)		549,656	43,402
Held-to-maturity securities	315,485	8,165	8,617	(451)	299,159	9,997	16,325	(1,831)

(*1) Not include stocks with no market price and investment partnership etc.

(*2) Fair value of listed stocks included in "Available-for-sale securities" is determined based on the quoted market price over the consolidated balance sheet date.

Breakdown of "Available-for-salesecurities (Others)" (*1) [Non-consolidated]

													(Millions of yen)
						Sep. 2023			Mar. 2023		Change
						Cost	Net			Cost	Net		Cost	Net
Domestic investment (*2)	109,988	1,713	107,893	1,803	2,094	(89)
		Asset-backed securities	69,368	537		71,614	514		(2,246)	22
		Others	40,620	1,176			36,279	1,288		4,341	(112)
International investment (*2)	2,500,571	(74,076)	1,766,255	(30,041)	734,315	(44,034)
		Foreign government bonds	2,500,350	(75,390)		1,765,923	(31,160)		734,426	(44,229)
				US Treasury	1,067,095	(61,744)	650,520	(17,262)	416,574	(44,481)
				European government bonds (*3)	24,647	(3,388)	22,698	(2,361)	1,949	(1,026)
						113,502	(5,757)
				US agency MBS	71,060	(1,677)	42,441	(4,079)
				Corporate bonds, etc. (*4)	1,261,383	(3,553)	1,014,630	(9,464)	246,753	5,910
					220	1,313
		Foreign stocks and others			331	1,119		(111)	194
Others (Investment trust, etc.) (*5)	811,405	(95,991)			998,159	(183,518)		(186,753)	87,527
Total	3,421,965	(168,353)	2,872,308	(211,756)	549,656	43,402

(*1) Not include stocks with no market price and investment partnership etc.

(*2) "Domestic investment" and "International investment" are basically categorized by the countries where final exposure exists.

(*3) UK government bonds (Gilts), and French government bonds (OATs)

(*4) Corporate bonds which are based on issuer's credit risk.

(*5) "Investment trust" and investment securities uncategorizable into "Domestic investment" or "International investment".

5

Sumitomo Mitsui Trust Holdings, Inc.

Breakdown of "Held-to-maturity securities" [Non-consolidated]

(Millions of yen)

			Sep. 2023		Mar. 2023		Change
			Cost	Net		Cost	Net		Cost	Net
Held-to-maturity securities	315,485	8,165	299,159	9,997	16,325	(1,831)
	Japanese Government Bonds	117,025	7,994	117,214	10,766	(188)	(2,772)
	Japanese Local Government Bonds	-	-	-	-	-	-
	Japanese Corporate Bonds	14,400	103		14,400	126		-	(23)
	Others	184,060	68	167,545	(896)	16,514	964
		Domestic investment (*)	36,942	203		40,005	276		(3,063)	(72)
		International investment (*)	147,117	(135)	127,539	(1,172)	19,578	1,037

(*) "Domestic investment" and "International investment" are basically categorized by the countries where final exposure exists.

Breakdown of "Stocks with no market price and investment partnership etc."

[Non-consolidated]

(Millions of yen)

			Sep. 2023		Mar. 2023		Change
			Cost	Net		Cost	Net	Cost	Net
Available-for-sale securities	593,045	14,211	523,771	6,420	69,273	7,791
	Japanese stocks	68,748	-	66,397	-	2,350	-
	Others	524,296	14,211	457,373	6,420	66,923	7,791
		Domestic investment (*)	83,884	4,377	76,697	4,573	7,186	(195)
		International investment (*)	440,412	9,833	380,676	1,847	59,736	7,986

(*) "Domestic investment" and "International investment" are basically categorized by the countries where final exposure exists.

6

Sumitomo Mitsui Trust Holdings, Inc.

6. Maturity ladder of securities

<"Held-to-maturity securities" and "Available-for-sale securities" with maturities>

[Consolidated]

(Millions of yen)

				Sep. 2023						Mar. 2023
		Less than	1 year to	5 years to	Over	Total		Less than	1 year to	5 years to	Over	Total
		1 year	5 years	10 years	10 years		1 year	5 years	10 years	10 years
Japanese bonds	582,769	1,825,224	277,248	59,004	2,744,246	408,325	1,575,456	268,468	57,648	2,309,899
	Government bonds	481,077	1,361,695	108,077	13,313	1,964,163		350,880	1,087,643	96,612	14,138	1,549,273
	Local government bonds	3,314	17,422	19,985	-	40,722	1,674	17,283	19,159	-	38,117
	Corporate bonds	98,376	446,107	149,185	45,690	739,360		55,770	470,530	152,696	43,510	722,507
Others	548,910	1,034,607	755,638	982,289	3,321,445	631,482	722,200	652,635	724,621	2,730,940

Note: Including NCD in "Cash and Due from Banks" and "Monetary Claims Bought", as well as securities.

[Non-consolidated]

(Millions of yen)

				Sep. 2023						Mar. 2023
		Less than	1 year to	5 years to	Over	Total		Less than	1 year to	5 years to	Over	Total
		1 year	5 years	10 years	10 years		1 year	5 years	10 years	10 years
Japanese bonds	582,769	1,825,164	277,248	59,004	2,744,186	408,325	1,575,396	268,468	57,648	2,309,839
	Government bonds	481,077	1,361,635	108,077	13,313	1,964,103	350,880	1,087,583	96,612	14,138	1,549,213
	Local government bonds	3,314	17,422	19,985	-	40,722	1,674	17,283	19,159	-	38,117
	Corporate bonds	98,376	446,107	149,185	45,690	739,360		55,770	470,530	152,696	43,510	722,507
Others	538,779	984,753	751,167	967,908	3,242,608	625,635	676,475	645,969	709,141	2,657,221

Note: Including NCD in "Cash and Due from Banks" and "Monetary Claims Bought", as well as securities.

7. Shareholdings

1. Balance of listed stocks
   [Consolidated]

		(Billions of yen)
	Sep. 2023	Mar. 2023
Cost basis	511.8	495.4
Fair value basis	1,182.6	1,072.6

1. Reduction of cross shareholdings
   [Consolidated]

			(Billions of yen)
	FY2023		FY2022
	1H		Full	1H
Cost basis	19.6	52.4	9.9

Note: Reduction in FY2022 exclude sold and repurchased shares in FY2020 is 46.7 billion yen.

8. Deferred unrealized gains/ losses of derivative transactions qualified for hedge accounting

[Consolidated]

(Millions of yen)

	Sep. 2023	Mar. 2023	Change
Interest rate related	(8,663)	(67,827)	59,164
Interest rate swaps	(8,663)	(67,827)	59,164
Currency related	1,558	368	1,190
Total	(7,104)	(67,459)	60,354
Note: Before considering tax effect accounting.
[Non-consolidated]		(Millions of yen)
	Sep. 2023	Mar. 2023	Change
Interest rate related	(8,979)	(67,953)	58,974
Interest rate swaps	(8,979)	(67,953)	58,974
Currency related	(19,715)	(12,541)	(7,174)
Total	(28,695)	(80,494)	51,799

Note: Before considering tax effect accounting.

7

Sumitomo Mitsui Trust Holdings, Inc.

9. BIS capital adequacy ratio (Basel III)

1. BIS capital adequacy ratio (International standard)
   [Consolidated]

(Billions of yen)

							Sep. 2023	Mar. 2023	Change
							(Preliminary)
Common Equity Tier 1 capital ratio	(8) / (20)	1	10.73%	10.79%	(0.06%)
Tier 1 capital ratio	(12) / (20)	2	11.90%	12.01%	(0.11%)
Total capital ratio	(16) / (20)	3	13.02%	13.24%	(0.22%)
				Directly issued qualifying capital plus retained earnings		4	2,551.3	2,547.7	3.5
				Accumulated Other Comprehensive Income ("OCI")		5	352.9	204.2	148.7
			Instruments and reserves		6	2,905.1	2,752.9	152.1
			Regulatory adjustments		7	(295.2)	(243.2)	(51.9)
		Common Equity Tier 1 capital (CET1)		8	2,609.9	2,509.7	100.1
			Directly issued qualifying Additional Tier 1 instruments		9	270.0	270.0	-
			Eligible Tier 1 capital instruments subject to phase-out arrangements	10	-	-	-
		Additional Tier 1 capital (AT1)		11	284.5	283.7	0.8
	Tier 1 capital (T1 = CET1 + AT1)		12	2,894.4	2,793.5	100.9
		Directly issued qualifying Tier 2 instruments		13	265.4	270.6	(5.2)
		Eligible Tier 2 capital instruments subject to phase-out arrangements	14	-	-	-
	Tier 2 capital (T2)		15	272.3	287.7	(15.3)
Total capital (T1 + T2)		16	3,166.8	3,081.2	85.5
	Amount of credit risk-weighted assets		17	21,412.5	20,411.9	1,000.6
	Amount of market risk equivalents		18	1,819.4	1,838.2	(18.7)
	Amount of operational risk equivalents		19	1,076.8	1,006.7	70.1
Total risk weighted assets		20	24,308.9	23,256.8	1,052.0

Minimum

requirement (*)

(Sep. 2023)

7.56%

9.06%

11.06%

1. Capital conservation buffer, countercyclical capital buffer and surcharge for domestic systemically important banks are taken into account and added to minimum regulatory requirements for each capital ratio.

8