Sumitomo Mitsui Financial Group

Sumitomo Mitsui Financial Group’s Ruthless Expense Overhaul: How Cost-Crushing Tactics Could Boost Margins!

Sumitomo Mitsui Financial Group (SMFG) presented a mixed set of results for the fiscal year ended in March 2017, with several positives but also notable challenges. The company’s profit attributable to owners of the parent came in at JPY 706.5 billion, an increase of JPY 59.8 billion from the previous year, partly due to the tax effects associated with adopting a consolidated corporate tax system. This tax benefit, however, will not recur, impacting future profitability metrics. While the consolidated net business profit remained flat, operations were conducted in a severe earnings environment following the introduction of Japan’s negative interest rates, demonstrating SMFG’s resilience.