(05 February 2013 – Japan) Japan’s second-largest bank, Sumitomo Mitsui Financial Group (SMFG) posted a US$6.1 billion (A$5.8 billion) profit from April to December.The 34 percent rise in profits was largely due to operational improvements, due to its decision to make Sumitomo Mitsui Banking Corporation (SMBC) Consumer Finance a subsidiary.
Profits from SMBC Consumer Finance contributed to the positive results over the nine months.
The bank said operating revenues rose 8.5 percent to US$34.3 billion from US$31.6 billion.
SMFG’s net profit in the same period has already exceeded its full-year forecast through March. The bank, however, maintained its outlook for group net profit at US$5.8 billion because it wants to watch ongoing uncertainty over financial and economic conditions domestically and globally.
SMFG also enjoyed a strong performance in overseas lending but didn’t provide any numbers. It has beefed up lending abroad in areas such as corporate finance, project finance and trade finance.
In the April-December period, SMFG was hit by losses of some US$723 million on its equity holdings in Japan’s harassed electronics companies.