Sumitomo Mitsui Financial : Financial document (2026 fy e summary)

About this update from Sumitomo Mitsui Financial Group, Inc.

Globally connected. Rooted in Japan. Your most trusted partner. Investor Meeting FY3/2026 May 18, 2026 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. Hello everyone. I'm Nakashima. Thank you for your continued support. In April this year, we launched a new Medium-Term Management Plan. In formulating this plan, we held extensive discussions across the Group about where we currently stand, where we should aspire to be in the future, and what actions we must take to get there. Today, I would like to share with you the future we aim to create and the strategies we will pursue to achieve it. This document contains "forward-looking statements" (as defined in the U.S. Private ▶ Definitions Securities Litigation Reform Act of 1995), regarding the intent, belief or current expectations of Sumitomo Mitsui Financial Group, Inc. ("the Company") and its management with respect to the Company's future financial condition and results of operations. This document also contains "sustainability statements" related to the sustainability activities of the Company concerning the environmental, social, and SMFG Sumitomo Mitsui Financial Group, Inc. governance matters. In many cases but not all, these statements contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "probability," "risk," "project," " should," "seek," "target," "will" and similar expressions. Such statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those expressed in or implied by such forward-looking statements or sustainability statements contained or deemed to be contained herein. The risks and uncertainties which may affect future performance or results include: deterioration of Japanese and global economic conditions and financial markets; declines in the value of the Company's securities portfolio; incurrence of significant credit-related costs; the Company's ability to successfully implement its business strategy through its subsidiaries, affiliates and alliance partners; and exposure to new risks as the Company expands the scope of its business. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements or sustainability statements, which speak only as of the date of this document. The Company undertakes no obligation to update or revise any forward-looking statements or sustainability statements. The sustainability initiatives of the Company described in the "sustainability statements" are based on policies and practices that seek to promote and responsive to its risk management and other investment and objectives. Each decision will be made subject to local legal requirements. Please refer to the Company's most recent disclosure documents such as its annual report on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as its earnings press releases, for a more detailed description of the risks and uncertainties that may affect its financial conditions, its SMBC Sumitomo Mitsui Banking Corporation SMBC Trust SMBC Trust Bank SMFL Sumitomo Mitsui Finance and Leasing SMBC Nikko SMBC Nikko Securities SMCC Sumitomo Mitsui Card Company SMBCCF SMBC Consumer Finance SMDAM Sumitomo Mitsui DS Asset Management SMBCAC SMBC Aviation Capital SMICC SMFG India Credit Company Major local subsidiaries SMBC Bank International, SMBC Bank EU, SMBC (China) operating results, and investors' decisions. FX rates (TTM) FX rates (average) Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 1 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. Expenses (non-consolidated) Excl. non-recurring losses Net business profit Before provision for general reserve for possible loan losses Mar. 25 Mar. 26 USD 149.53 159.90 EUR 162.05 183.44 Retail Business Unit (RT) Domestic retail business Wholesale Business Unit (WS) Domestic wholesale business Global Business Unit (GB) International business Global Markets Business Unit (GM) Market / Treasury related businesses USD 152.57 151.06 EUR 163.65 175.53 Agenda Ⅰ Financial Results ////////////////////////////////////////////// 3 Ⅱ New Medium-Term Management Plan ////// 24 Ⅲ Capital Policy ////////////////////////////////////////////////// 52 Appendix ///////////////////////////////////////////////////////// 60 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 2 /////////////////////////////// ‌ Financial Results of FY3/2026 (JPY bn) Results YoY vs. target Gross profit 4,844.7 +717.9 - G&A expenses 2,651.5 +249.6 - Overhead ratio 54.7% (3.5)% Net business profit 2,330.9 +611.6 +280.9 Total credit cost 388.4 +43.9 +88.4 Gains (losses) on stocks 446.1 (63.8) - Ordinary profit 2,303.4 +583.9 +193.4 Net income 1,583.0 +405.0 +83.0 ROE 10.4% +2.4% - EPS (JPY) 412 +110 - One-off profits: +224 Measures for future: (188) Higher gains of stocks +110 Forward-looking provisions (46) Higher profits of GM Business Units +100 Bond portfolio rebalancing (42) Receipt of insurance claims +14 Loss from the restructuring (34) on aircraft leasing of an U.S. banking subsidiary Radical allowance for dormant deposits *1 (24) Sales of low-return assets (21) Disposal of NPL at OTO/SOF (21) Achieved record-high net income as strong core businesses continued, exceeding the target of JPY 1.5tn. ROE and EPS also improved substantially in line with profit growth. ▶ Breakdown of net income (JPY bn) Solid business +212 Utilize one-off profits for future measures +36 1,583.0 Interest rate and FX +94 1,178.0 Absence of forward-looking +63 provisions in FY3/25 FY3/25 FY3/26 All figures are after tax *1 Allowance for possible losses on repayment claims for dormant deposits that have had no transactions for an extended period and are no longer recognized as liabilities. Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 4 Results of FY3/26 FY3/26 FY3/26 began amid rising uncertainty over the global economic outlook, triggered by U.S. tariffs. However, the negative impact did not materialize to the extent expected. Supported by favorable business environment, including policy rate hikes, net income exceeded the revised target announced in November and reached a new record high. In particular, in the domestic market, we successfully captured strong corporate activities, leading to solid loan growth. In retail, we made steady progress in expanding our services and customer base, with Olive accounts reaching 7.5 million. As a result, our core business delivered growth of JPY 212bn, even after excluding one-off factors, as well as the impacts of interest rates and foreign exchange. Meanwhile, we leveraged one-off profits such as gains of stocks to implement future measures, including the disposal of low-return assets and the bond portfolio rebalancing. We also recorded forward-looking provisions considering the ongoing tensions in the Middle East. After taking these measures, net income reached JPY 1,583bn, an increase of approximately JPY 400bn year on year. We also achieved our ROE target of 10% and delivered record-high EPS. I believe that we concluded the final year of our previous Medium-Term Management Plan in a strong position, both in terms of earnings power and capital efficiency. (JPY bn) Results Target FY3/26 FY3/27 YoY Net business profit 2,330.9 2,400 +69.1 Credit cost 388.4 340 (48.4) Ordinary profit 2,303.4 2,390 +86.6 Net income 1,583.0 1,700 +117.0 Aim to achieve net income of JPY 1.7tn, driven by solid growth in underlying businesses while absorbing the impact from the Middle East. Maintain flexibility in addressing downside risks to deliver the target. ▶ Breakdown of net income (JPY bn) 1,700 Solid business +120 1,583.0 Interest rate and FX *1 +30 One-off factors in FY3/26 Absence Absence of of one-off measures profits for future (224) +188 FY3/26 FY3/27 *1 Macro assumption : Policy rate Japan: 0.75%, US: 3.5% FX: USD1=JPY150 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 5 Target of FY3/27 For FY3/27, we set our net income target at JPY 1.7tn. At present, we have not observed any significant changes in our customer investment activities or corporate actions, in any of the business units. However, given the continued uncertainty in the environment, our plan factors in a certain degree of potential business slowdown going forward. In FY3/26, we increased forward-looking provisions to JPY 100bn, mainly to address risks related to the Middle East situation and inflation. In addition, our assumptions for foreign exchange rates and interest rates in FY3/27 are somewhat conservative. Therefore, even if the current tension persists for some time, I believe that we have capacity to absorb a certain level of downside risk. That said, further deterioration in the Middle East could pose additional downside risks, especially for Asia and Japan, given their reliance on Middle Eastern oil, including potential supply chain disruptions. On the other hand, these conditions may also create new business opportunities, such as a precautionary funding demand and hedging transactions for risk management. We aim to achieve our net income target of JPY 1.7tn by carefully controlling downside risks while flexibly capturing these opportunities. Gross profit 4,844.7 +717.9 G&A expenses Overhead ratio 2,651.5 54.7% +249.6 (3.5)% Equity in gains (losses) of affiliates 137.7 +143.2 Net business profit 2,330.9 +611.6 +36% +280.9 Total credit cost 388.4 +43.9 +88.4 Gains (losses) on stocks 446.1 (63.8) Other income (expenses) (85.2) +79.9 Ordinary profit 2,303.4 +583.9 +193.4 Extraordinary gains (losses) (51.6) (32.1) Income taxes 666.9 +153.8 ROE incl. OCI *2 10.4% +2.4% ROE *3 13.8% +3.0% Net income 1,583.0 +405.0 +34% +83.0 (JPY bn) 1 2 3 4 5 6 7 8 9 10 11 12 13 Gross profit: despite a bond portfolio rebalancing: (60) and sales of low-return assets: (30), increased YoY due to increase of net interest income in domestic market increase of fee income in domestic wholesale business, and good performance in wealth management business, payment business and consumer finance. Impact of FX *1 : +65 G&A expenses: increased YoY mainly due to inflation and higher variable marketing costs, while the overhead ratio significantly improved on top-line growth. Impact of FX *1 : +29 Equity in gains of affiliates: increased YoY due to absence of the impairment in Vietnam: +135 Impact of FX *1 : +4 Total credit cost: increased due to forward-looking provisions preparing for the potential risks initiated by the Middle East tensions: +65 disposal of NPL at OTO/SOF: +31 Gains on stocks: decreased YoY despite Kotak share sales: +94, lower gains on sales of equity holdings: +386 (YoY(99)), and loss on Bank of East Asia share sale: (28) Others: increased due to the absence of an allowance on interest repayment of consumer finance: +140 , despite the loss from forward dealings which aim to mitigate risk of stock prices: (32) and allowance for dormant deposits: (34) Extraordinary losses: decreased due to the loss from the reorganization of an U.S. banking subsidiary: (46) *1 Impact of FX on SMBC overseas branch: transaction date rate, overseas subsidiary: end-of-period rate *2 Denominator: Shareholder's equity + total accumulated other comprehensive income *3 Based on shareholder's equity Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 6 Income Statement vs. target YoY FY3/26 4 Domestic 1,148.0 +300.2 5 Overseas 798.3 (5.1) Gross profit 586.4 +51.0 884.4 +66.0 *3 (excl. one-off items) Expenses 470.7 +23.8 627.0 +58.1 Net business profit 115.7 +27.2 262.9 +80.1 262.9 +80.1 Net income 128.3 +55.0 105.7 +170.0 105.7 +29.8 SMBC Trust SMDAM 50% SM *4 50% FL Gross profit 80.7 +8.5 51.6 +7.8 411.2 +105.3 Expenses 45.7 +3.1 35.4 +1.9 179.2 +38.9 Net business profit 35.1 +5.5 16.3 +6.0 240.9 +63.2 Net income 26.4 +4.1 5.8 +2.1 120.1 (13.8) ▶ SMBC ▶ Other Major Group Companies (left : results of FY3/26 / right : YoY) (JPY bn) SMBC Nikko *1 SMCC *2 1 Gross banking profit (JPY bn) 2,677.9 +421.3 2 o/w Net interest income o/w Gains (losses) on cancellation of investment trusts 1,946.3 +295.0 3 65.4 (18.6) 6 o/w Net fees and commissions 620.0 +74.1 (Equity method affiliate) 7 Domestic 298.5 +46.7 8 10 Overseas o/w Net trading income Net other operating income o/w Gains (lossses) on bonds 321.4 +27.4 9 107.6 +51.5 (96.5) (41.3) 11 Expenses 1,186.0 +113.9 12 Banking profit 1,491.9 +307.5 +111.9 13 Total credit cost 86.0 (64.8) +26.0 14 Gains (losses) on stocks 426.7 (59.4) 15 Extraordinary gains (losses) 66.0 +97.6 16 *1 Incl. profits from SMBC Nikko America and SMBC Capital Markets (managerial accounting basis) *2 Incl. SMBCCF *3 Excl. impairment of FE Credit and the radical allowance on interest repayment, the gain on extinguishment of tie-in shares related to the merger with SMBCFS *4 Managerial accounting basis Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 7 (Ref.) Group Companies vs. target YoY FY3/26 Net income 1,411.7 +343.1 +121.7 Eliminated in consolidated basis dividend from a subsidiary: 150 (YoY +5) reversal of allowance for investment losses from VPBank: 90 ▶ Net Business Profit Breakdown by Business Unit ▶ Net Income Breakdown by Group Company (JPY bn) (JPY bn) Others 2,330.9 SMBC Trust SMDAM SMCC *3 26.4 5.8 105.7 SMFL 60.0 Others SMFG 1,583.0 WS +213.5 GB +16.3 GM +39.0 SMBC 1,411.7 SMBC Nikko *2 128.3 Overseas Banking RT +139.4 Absence of impairment of VPBank and FE Credit in Vietnam (+135) Subsidiaries 113.1 Eliminated in consolidated basis *1 (240) 1,719.3 FY3/25 FY3/26 *1 Dividend from a subsidiary: JPY 150bn, reversal of allowance for investment losses from VPBank: JPY 90bn *2 Incl. profits from SMBC Nikko America and SMBC Capital Markets (managerial accounting basis) *3 Incl. SMBCCF Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 8 (Ref.) Net Business Profit and Net Income Breakdown RT WS GB 市場 そ の他 Loans 70 Deposits 130 Floating rate 40 Saving 90 Fixed rate 20 Time 25 Prime rate 10 Current 15 Market operation 60 BOJ's current account 50 Short-term JGB 3 Mid- to long-term JGB 7 Others 15 Others 15 Yen swap, etc. Capital funding Market funding A +25bps rate hike is expected to add JPY 110bn in year 1, rising to JPY 150bn by year 5 as fixed-rate loans gradually reprice. Further upside from loan volume growth, spread expansion, and JGB portfolio optimization. for every +25bps +JPY 100bn Reflects the lagged impacts and B/S changes Year 1 +JPY 110bn *1 Year 5 +JPY 150 bn *1 JPY B/S as of Mar.26 (JPY tn) Impact on NII (JPY bn) Investment Funding Upside Loan volume growth, spread expansion JGB portfolio optimization Policy rate ⇒ 75bps (Dec.25) +100 ⇒ 50bps (Jan.25) Lift of the NIRP *2 (Mar.24) ⇒ 25bps (Jul.24) FY3/26 FY3/27 FY3/31 *1 +25bps increase in both short-term and long-term rate, deposit rate based on historical results *2 Negative interest rate policy Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 9 Impact of Rising JPY Interest Rates 120 110 150 110 120 30 150 110 150 We previously explained that a 25bps policy rate hike would increase net interest income by JPY 100bn. We have now updated this estimate to reflect recent changes in our balance sheet. Under the revised estimate, the positive impact in the first year is expected to be JPY 110bn, increasing by JPY 10bn from the previous assumption. Furthermore, the repricing of fixed-rate loans, which was not previously included, is expected to contribute gradually, raising the fifth year impact to around JPY 150bn. Further upside is also expected from loan growth, spread improvement, JGB portfolio optimization and duration extension. 75.2 88.6 545.8 620.0 66.9 56.0 107.6 FY3/25 FY3/26 FY3/25 FY3/26 Net interest income increased by loan growth and higher interest rates. Fee income also increased due to robust corporate activities and higher transaction volumes from Olive. ▶ Net Interest Income ▶ Net Fees and Commissions ▶ Net Trading Income + Net Other Operating Income SMBC Overseas banking subsidiaries SMBC Nikko SMCC *1 SMICC Others (JPY bn) 2,719.6 2,338.2 101.3 258.0 1,820.6 1,559.2 84.0 *2 595.6 532.5 320.3 1,651.3 269.6 166.3 211.7 219.6 27.9 292.8 27.1 65.4 FY3/25 FY3/26 Eliminated in consolidated basis *3 *1 Incl. SMBCCF *2 Gains on cancellation of investment trusts *3 Incl. dividend from a subsidiary (JPY 145bn in FY3/25, JPY 150bn in FY3/26) Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 10 Gross Profit 1,946.3 65.4 *2 382.4 398.3 261.7 126.0 11 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. Loan balances declined excluding FX impact but increased in JPY. Income from loans and deposits decreased due to interest rate cuts and growth in deposit volumes. ⚫ ▶ Overseas ▶ Domestic Income from loans and deposits increased due to improved loan-to-deposit spread by higher interest rates and loan growth. (Ref.) Net Interest Income (SMBC) Interest earned on loans and bills discounted 1.35 +0.31 1.29 1.40 Loan-to-deposit spread 1.15 +0.17 1.11 1.17 Domestic loans 66.7 +4.4 0.68 (0.01) o/w Large corporations 26.3 +3.6 0.54 (0.05) Mid-sized corporations & SMEs 23.3 +1.5 0.68 +0.02 Individuals 12.1 (0.0) 1.15 +0.01 GBU's interest earning assets *3 362.1 USD bn +13.2 USD bn 1.43 +0.09 Balance (JPY tn) Spread (%) FY3/26 YoY *4 FY3/26 YoY ▶ Loan Balance ▶ Domestic Loan-to-Deposit Spread (%) Interest earned on loans and bills discounted 1.34 +0.32 1.28 1.40 Interest paid on deposits, etc. 0.20 +0.14 0.18 0.23 Loan-to-deposit spread 1.14 +0.18 1.10 1.17 (Ref.) Excl. loans to the Japanese government, etc. ▶ Average Loan Balance and Spread *2 *1 SMBC *2 Managerial accounting basis *3 Sum of SMBC, Major local subsidiaries and SMBC Trust, etc. Sum of loans, trade bills, and securities. The spread shows the difference with the cost of funds *4 After adjustments for FX rates, etc. Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 12 Loans *1 2H 1H YoY FY3/26 Loan balances grew on strong funding demand, supported by major deals with large corporate clients. Retail deposits increased, driven by Olive, while corporate deposits grew by capturing surplus funds from large clients. ▶ Loan Balance *2,3 ▶ Deposit Balance ▶ Loan Average Balance for Corporates *2,4 ▶ Loan Spread for Corporates *2,5 (JPY tn) 28 26 24 22 20 18 16 Large corporations Mid-sized corporations and SMEs 0.8% 0.7% 0.6% 0.5% 0.4% 0.3% Large corporations Mid-sized corporations and SMEs 1Q 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1Q 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 FY3/23 FY3/24 FY3/25 FY3/26 FY3/23 FY3/24 FY3/25 FY3/26 *1 SMBC *2 Managerial accounting basis *3 Changed the definition of mid-sized corporations and SMEs from Sep.25. The figures before have been adjusted retrospectively *4 Quarterly average (excl. loans to the Japanese government). Figures for SMEs are the outstanding balance of Corporate banking division *5 Loan spread of existing loans (excl. loans to the Japanese government) Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 13 Domestic Loans and Deposits *1 Loan spreads improved despite lower loan balances, reflecting reduction in low-return assets and a shift toward higher margin loans. ▶ Loan Balance ▶ Loan Spread *2,3 (USD bn) Asia Americas EMEA vs Mar.25 excl. FX impact 288 290 285 295 289 (3)% 80 77 82 86 84 (5)% ▶ Loan to Deposit Spread 105 117 113 122 123 +0% 8.0% Yield of loans and bills discounted Yield of deposits Loan to deposit spread 6.0% 4.0% 102 96 90 86 82 (6)% 2.0% 0.0% 1Q 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Mar.22 Mar.23 Mar.24 Mar.25 Mar.26 FY3/23 FY3/24 FY3/25 FY3/26 *1 Managerial accounting basis. Sum of SMBC and Major local subsidiaries *2 Quarterly average loan spread of existing loans *3 Changed the definition from FY3/25. The figures before have been adjusted retrospectively Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 14 Overseas Loans and Deposits *1 Domestic 651.1 455.4 584.4 Asia 209.9 174.9 246.9 Americas 84.5 117.5 367.3 EMEA 77.6 133.9 150.7 (JPY bn) FY3/26 YoY SMBC 1.8 1.7 1.2 Total claims (JPY tn) Consolidated 126 131 139 SMBC 120 123 130 ▶ Credit Costs ▶ Non-Performing Loan Ratio *2 and Balance (JPY bn) Consolidated SMBC (JPY bn) Consolidated SMBC 0.80% 0.81% 0.97% 0.67% 388.4 344.5 340 0.52% 0.52% 0.43% 274.0 0.71% 1,349.3 210.2 927.8 586.6 1,023.1 881.7 919.3 115.5 (10bp) 150.8 (12bp) 630.0 536.5 96.3 (8bp) 86.0 (7bp) 90 Mar.23 Mar.24 Mar.25 Mar.26 Non-performing loan balance *3 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 forecast (JPY bn) Major group companies Claims on borrowers requiring caution (excl. claims to substandard borrowers) (JPY tn) *1 Incl. disposal of OTO/SOF NPL: JPY (31) *2 NPL ratio = NPLs based on the Banking Act and the Reconstruction Act (excl. normal assets) / Total claims *3 Managerial accounting basis Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 15 Asset Quality SMCC 126 +10 o/w SMBCCF 69 +10 Overseas banking subsidiaries 111 *1 +31 SMICC 43 +12 Middle East tensions Inflation/ Higher rates Credit costs were in line with forecast, excluding forward-looking provisions and OTO/SOF NPL disposals. Middle East-related risks, including potential spillover effects, are partly provisioned for and remain closely monitored. (JPY bn, Breakdowns in round figures) Forward-looking provisions for Middle East Estimate potential impacts under revenue-decline scenarios for portfolios likely to be affected 344.5 388.4 Forward-looking provisions for Middle East 65 OTO/SOF 340 Forward-looking provisions for U.S. tariffs 90 31 292.4 Production cuts / operational Large-borrowers in Brazil 74 Assumed Business Higher manufacturing Higher interest burden and rising risks disruptions in the suspensions Middle East due to inventory shortages and transportation material prices, costs etc. Initial forecast 300 Enhance head office oversight and local collection / credit monitoring capabilities Target Resource Petrochemicals, energy, portfolio development, etc. transportation, materials, etc. LBO, Project finance under construction phase, etc. Estimate appropriate provision by applying revenue-decline assumptions to each portfolio New provisions in FY3/26: JPY 65bn FY3/25 FY3/26 FY3/27 forecast Forward-looking provision balance JPY 100bn Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 16 Credit Costs Spillover effects Direct impact SMBC Group's Exposure *1 JPY 177tn ≤ 1% 2% 2% Qatar JPY 1.3tn Data Centers JPY 2.6tn Saudi Arabia JPY 1.1tn 80% of off-takers are hyperscalers UAE JPY 0.6tn Software JPY 1.3tn *1 SMBC consolidated, calculated based on location for headquarter, managerial accounting basis *2 Companies providing financial and managerial support to portfolio companies (Business Development Company) *3 Borrowings ranking pari passu with or senior to SMBC / current fund asset value Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 17 Exposure to Private Credit, AI, and the Middle East JPY 4.0 tn AI JPY 3.5 tn Middle East JPY 1.2 tn Private Credit < 1% of total exposure 1% of total exposure Investment grade: > 80% Financials and Sovereign:70% BDC *2 JPY 1.2tn (o/w on balance: 0.5tn) Financing secured by BDC-held assets, mainly loans to unlisted mid-sized and small businesses No NPLs Investment Grade: > 80% LTV: c. 20% *3 Senior / Secured: 100% Held-to-maturity 4,655.3 +4,380.9 (178.6) (172.5) 1 year or less 1 to 5 years 5 to 10 years ■ More than 10 years Available for sale 34,802.3 (4,974.5) 3,220.2 +414.2 Stocks (domestic) 3,503.3 +458.1 2,497.2 +536.3 Bonds (domstic) 7,556.7 (6,336.8) (271.2) (126.4) o/w JGBs 5,476.4 (5,704.1) (120.4) (68.0) Others 23,742.3 +904.2 994.3 *1 +4.3 ▶ Breakdown of Other Securities (Consolidated) ▶ Yen-Denominated Bonds (SMBC) B/S amount Unrealized gains (losses) Mar.26 vs Mar.25 (JPY bn) (JPY bn) Mar.26 vs Mar.25 o/w Foreign bonds 18,534.8 +1,110.0 (300.4) +148.7 Risk volume is controlled by hedging and others ▶ Foreign Bonds (SMBC) (JPY bn) *1 The main difference between foreign bonds and others is unrealized gain on foreign stocks *2 Managerial accounting basis (excl. bonds classified as held-to-maturity, bonds for which hedge-accounting is applied, and private placement bonds) *3 Excl. Held-to-maturity Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 18 Securities Total reduction JPY 309bn FY3/25 JPY 185bn FY3/26 JPY 124bn Reduction progress reached 52%, ahead of the 40% standard pace. Accelerate reductions through persistent client negotiations toward early plan achievement. (JPY tn) 6.09 Book value of domestic listed stock *1 Market value of domestic listed stock *1 Reduction 3.82 Market value of equity holdings *2 / consolidated net assets 3.12 Consent of sales JPY 69bn 2.76 1.01 Reduction plan (FY3/25-FY3/29) 0.83 32.9% JPY (600)bn 27.3% 0.70 27.5% Reduce ahead of schedule Target: <20% Apr.01 Mar.24 Mar.25 Mar.26 Mar.29 *1 Excl. investments after Mar.20 for the business alliance purpose *2 Incl. balance of deemed held shares Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 19 Reduction of Equity Holdings Domestic loans *1 JPY 71.6tn JGBs *2 JPY 5.5tn Foreign bonds *2 JPY 18.5tn Domestic deposits *1 JPY 135.9tn NCD JPY 15.7tn Cash and due from banks JPY 73.7tn BOJ's current account *1 JPY 50.8tn Others JPY 111.2tn (+JPY 8.4tn) Total net assets JPY 15.9tn (+JPY 1.1tn) ▶ Consolidated (vs Mar.25) ▶ Domestic Loans and Deposits *3 JPY 117.6tn (+JPY 6.5tn) JPY 201.3tn (+JPY 12.7tn) Others *4 11% Mortgage,etc. 14% Prime-rate-based Loans Spread-based 1% JPY 40.0tn (JPY (0.8)tn) Spread-based (fixed rate) 20% (Floating rate) 54% Foreign currency JPY170.9tn (+JPY 16.5tn) 4% Others NCD 2% 3% Time 18% Deposits Current 10% Saving 63% Total assets JPY 328.5tn (+JPY 22.2tn) *1 SMBC *2 Excl. Held-to-maturity *3 Managerial accounting basis *4 Overdraft, foreign-currency-denominated, etc. Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 20 Balance Sheet Others Securities Deposits Loans Loan to deposit ratio 58.4% Interest earning assets USD 341bn (USD (10)bn) Others USD 203bn (+USD 12bn) Foreign bonds, NCD USD 85bn (USD (6)bn) Deposits *3 USD 315bn (+USD 46bn) Mid-long term funding *4 USD 138bn (USD (8)bn) CD／CP USD 93bn (USD (4)bn) Interbank (incl. Repo) USD 82bn (USD (38)bn) ▶ Non-JPY Balance Sheet *1,2 ▶ Foreign Currency Balance (vs Mar.25) +9% （ USD bn ） Loans, etc. 454 403 415 400 364 382 Mid-long term funding Yen swaps Bond, etc. 300 200 263 315 Deposits 100 235 240 269 0 Mar.22 Mar.23 Mar.24 Mar.25 Mar.26 (Ref.) Impact of Change in Foreign Interest Rate Most of the loans and deposits are based on market rate Net interest income increases by JPY 20bn when interest rate increase by 1%, as a part of the deposits have low sensitivity to interest rate and vice versa Assets / Liabilities USD 629bn (USD (4)bn) *1 Managerial accounting basis. Interest-earning assets redefined (Sep.25); prior figures restated *2 Sum of SMBC and major local subsidiaries *3 Incl. deposits from central banks *4 Corporate bonds, currency swaps, etc Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 21 Foreign Currency Loan/deposit Gross profit 1,555.6 +200.2 o/w Income on deposits 192.1 +126.8 Income on loans *2 72.2 (10.1) Wealth management business 383.2 +49.6 Payment business 582.6 +28.2 Consumer finance business 318.1 +17.7 Expenses 1,134.6 +62.4 Overhead ratio 72.9% (1.3)% Net business profit 427.7 +139.4 Total credit cost 126.2 +9.9 Net income 217.8 +227.4 Gross profit 1,253.4 +230.2 SMBC o/w Income on deposits 317.1 +143.2 Income on loans 280.8 +24.1 FX and money transfer fees 160.9 +4.8 Loan syndication 63.8 +3.8 Structured finance 88.9 +48.8 Real estate finance 21.0 +2.1 Securities business 91.0 +4.7 Expenses Overhead ratio 407.9 32.5% +27.2 (0.5)% Net business profit 997.1 +213.5 Total credit cost (4.6) (14.6) Gains (losses) on stocks 292.9 (129.8) Net income 918.5 +69.0 RoCET1 21.4% +0.7% Excl. the sales of equity holdings 16.3% +3.3% RWA (JPY tn) 40.0 +2.0 ▶ Retail Gross profit increased driven by higher income on deposit and solid performance across wealth management business, etc. Overhead ratio improved through steady implementation of cost control initiatives; net income and RoCET1 improved. ▶ Wholesale Income on loans and deposits increased significantly, driven by loan growth and wider spreads; fee income also rose mainly due to large transactions Net income and RoCET1 increased while gains on sales of equity holdings declined. (JPY bn) (JPY bn) *1 Managerial accounting basis (after adjustments of the changes in exchange rates) *2 Excl. consumer finance Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 22 Results by Business Unit (1) YoY *1 FY3/26 YoY *1 FY3/26 Results by Business Unit (2) YoY *1 FY3/26 *2 YoY *1 FY3/26 ▶ Global Both income on loans and loan-related fee income increased, driven by ROE-disciplined loan growth. Net income and RoCET1 declined as credit costs increased due to few large borrowers. ▶ Global Markets Banking profit increased steadily through nimble operation despite volatile market conditions. Although market turmoil weighed on trading, net income and RoCET1 improved. (JPY bn) (JPY bn) Gross profit 1,550.9 +110.1 o/w Income on deposits 187.3 (2.4) Income on loans 587.4 +31.5 Loan related fees 293.3 +49.3 Securities business 116.2 +20.4 Expenses 1,063.4 +107.4 Overhead ratio 68.6% +2.5% Equity in gains(losses) of affiliates 123.6 +8.0 Net business profit 655.8 +16.3 Total credit cost 257.9 +90.9 Net income 321.0 (37.6) Gross profit 697.8 +56.7 o/w SMBC 495.0 +90.4 SMBC Nikko 125.9 (23.7) Expenses 228.5 +23.2 Overhead ratio 32.7% +0.7% Net business profit 508.7 +39.0 Net income 356.2 +28.8 RoCET1 *3 21.7% +1.4% RWA (JPY tn) 7.5 +0.7 *1 Managerial accounting basis (after adjustments of the changes in exchange rates) *2 Excl. bond portfolio rebalancing *3 Incl. impact from the interest-rate risk associated to the banking account Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 23 ‌ New Medium-Term Management Plan (FY3/27-FY3/29) Now, I would like to explain our new Medium-Term Management Plan which commenced this fiscal year. FY3/26 15.2 % Maintained flat Cost control JPY (160)bn 10.3 % Targets ≥9.5% Reduction vs. FY3/23 c. 10% 0.00 0.20 0.40 0.60 Net income and EPS set new record highs. Each Business Unit steadily executed its initiatives, with Retail and Wholesale delivering particularly strong growth in net business profit and RoCET1. Achieved the highest record 412 RoCET1 30 (%) FY3/23 FY3/26 Net income (JPY bn) EPS (JPY) 302 25 Wholesale 242 JPY 1,583.0bn Global Markets 197 20 1,178.0 Retail 962.9 RoCET1 (consolidated) FY3/26 15 FY3/23 FY3/24 FY3/25 FY3/26 FY3/23 10 RoCET1 Base expenses CET1 ratio 5 Global *2 0 0 60 Percentage in total RWA (%) *1 Bubble size is proportional to profit indexed to the FY3/26 (base:FY3/23 net business profit=1) FY3/23 figures are restated on FY3/26 basis *2 Global Business Unit excludes the loss from the sale of low-return assets and disposal of OTO/SOF NPL Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 25 Review of the Previous Medium-Term Plan (1) 40 20 805.8 Financial targets RWA / RoCET1 *1 Net income / EPS Under a favorable business environment, we achieved the highest record in both net income and EPS in the final year of our previous Medium-Term Management Plan, while meeting all three financial targets. We steadily executed initiatives across all business segments, driving significant growth in net business profit. In particular, the Retail and Wholesale Business Units made strong contributions to the Group's RoCET1 improvement. US IG bond league table *3 FY3/23 FY3/26 Share 2.5% 3.2% Ranking 14th 12th Exit from low-return businesses FY3/23 FY3/26 +27% +19% SMBC Peer C + 39 % # of card holders FY3/23 ⇒ FY3/26 *1 30.2 41.9 (JPY tn) Credit card sales handled Mar.23 Mar.26 SMBC +27% Peer A +20% Peer B +15% 41.5 + 27 % Growth *1 52.9 (JPY tn) Balance of corporate loan Mar.23 Mar.26 Peer A +4% Peer B +3% + 8 % SMBC +8% 57.9 Growth *1 62.7 (JPY tn ） Balance of retail deposit Loan spread 1.43% 1.13% FY3/23 FY3/26 Reallocate RWA Invest JPY + 7.8tn Reduce JPY (8.7)tn Expanded competitive advantages in ⚫ Achieved strong growth in loan growth vs. ⚫ Improved spreads by reducing low-return deposits and credit cards by leveraging peers, with expanded fee income assets while growing securities business group-wide strengths. through ancillary transactions. through collaboration with Jefferies. Non-interest income (JPY bn ） 6,555 5,102 + 28 % Mar.23 Mar.26 FY3/23 FY3/26 Mar.23 Mar.26 *1 Based on company disclosures *2 SMBC Nikko Securities, based on data from LSEG *3 SMBC Nikko Securities, based on Bloomberg data (U.S.-issued investment-grade corporate bonds) Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 26 Review of the Previous Medium-Term Plan (2) Global Wholesale Retail + 20 % Mar.23 Mar.26 + 77 % Mar.23 Mar.26 3.0 2.5 13 Consumer finance outstanding (JPY tn ） 23 (JPY tn) AM / foreign currency balance Foreign currency deposit (USD bn ） 315 263 + 20 % 89.3 + 30 % FY3/23 FY3/26 116.2 (JPY bn) Securities business Balance of corporate deposit (JPY tn) 73.2 65.1 + 12 % League table *2 FY3/23 FY3/26 M&A 2nd 4th Equity 6th 4th Bonds 5th 2nd I believe this growth was not driven by external factors alone. It also reflects the steady execution of initiatives across each business segment and our continuous efforts to enhance the quality of our businesses. In Retail, Olive continued to expand, strengthening our customer base across deposits, payments, and wealth management, where we have a clear competitive advantage over peers. In Wholesale, we captured strong funding demand and robust corporate activities among domestic clients, enhancing both earnings and our competitive position. In Global, we improved loan spreads by shifting from low-return to higher-return assets, while expanding our securities business through collaboration with Jefferies. This further improved the quality of our portfolio. The Group started under a challenging business environment, burdened by non-performing loans and public funds. Continuous structural reforms and initiatives for future growth built a foundation to become a true global player. (JPY bn) Net income (left side) Market cap (right side) (JPY tn) 1,500 JPY 20 tn 15 1,000 10 500 5 0 0 FY / 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Global Tightening of financial crisis Basel regulations Beginning of NIRP COVID-19 NPL resolution / public fund repayment Expansion of business and regional wings Evolution of group management Lift of NIRP Challenge for growth Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 27 25 Years of SMBC Group History 30 25 ▲ 500 20 Looking back on our 25 years history, SMBC was established on April 1, 2001, under extremely challenging circumstances, as Japan's financial sector was still facing non-performing loan issues following the collapse of the asset bubble. I still clearly remember then-President Nishikawa describing our start as "setting sail into stormy seas amid a cold wind." In fact, we recorded net losses for the first two years after our establishment. Even after repaying public funds, we continued to face headwinds including the global financial crisis, the negative interest rate environment, and COVID-19. Despite these challenges, we kept moving forward. Through structural reforms, business expansion, and stronger group management, we steadily built foundations for growth. As a result, we have established one of the strongest earnings bases in Japan, as well as a global platform generates around 40% of total profits. During the previous Medium-Term Management Plan, these long-standing efforts began to fully bear fruit, supported by a favorable business environment. We achieved record-high profits for three consecutive years and expanded our book value to approximately JPY 20tn. I now believe that SMBC Group has finally reached a position to compete with global peers. Looking ahead, we aim to achieve market leadership in the domestic businesses while further strengthening our global presence. I am committed to leading SMBC Group into its next stage of growth. 17% 17% 16-18% 15-17% 14% SMBC Group JP Morgan HSBC BofA Goldman Barclays Sachs *1 Medium-to long-term ROTE or ROTCE targets of each company ROTE ： Numerator ＝ net income + goodwill amortization, Denominator= shareholders' equity - intangible assets Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 28 Our Vision for the Next Five Years and Beyond Net income ROTE Profitability targets *1 Globally connected. Rooted in Japan. Your most trusted partner. New vision SMBC Group In pursuing our goal of "achieve market leadership in the domestic businesses while strengthening our global presence," we have established a new vision for the next five years and beyond: "Globally connected. Rooted in Japan. Your most trusted partner." First, "Globally connected" reflects our ambition to become a top-tier global player. Leveraging our global network, we aim to support our clients' cross-border activities and connect capital, information, and business flows around the world. We have also deliberately included the word "Japan" in this vision, as Japan remains the core of SMBC Group's business foundation. I believe that establishing a top position in key strategic areas in our home market, while maintaining a solid domestic business base, will provide the foundation for our presence as a top-tier global player. Finally, "trusted partner" reflects the evolution of what we have consistently valued over the past quarter century. Under this vision, we aim to build earnings power comparable to global peers. Leading global players typically target ROTE of 15-20%, based on returns excluding goodwill and other intangible assets. As we establish ourselves as a leading global player, we are committed to achieving a ROTE of 15% over the medium- to long-term. This will require raising net income to the mid-JPY 2tn level. Reallocate RWA to high-growth areas to achieve 15% ROTE. Strengthen stable domestic loan and asset-light business to become best in class across all segments. RWA *1 Domestic loans, payment Overseas Deposits, business, consumer finance loans Transaction Banking Net income Wealth Management, Asset Management ROTE Multi-franchise strategy IB, S&T 4% 2% 1% JPY 113tn 38% Gains on sales of equity holdings 44% 1 2 IB, S&T +5 % +7 % Multi-franchise 9% strategy 1% (JPY tn) 10% JPY 130tn 39% (12) % 32% Overseas loans Lending business Asset- light business High- growth areas Portfolio transformation strategy Optimize Capitalize Build Next Core *1 Finalized Basel lll basis, excl. net unrealized gains on other securities *2 The mid-to long-term macro assumptions: Policy rate Japan:1.25%, US:3.0% FX: USD1=JPY150, no gains from the sales of equity holdings Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 29 Transform the Business Portfolio to Achieve 15% ROTE Medium- to long-term FY3/26 FY3/26 11.4% Mid-to *2 long-term 15 % Achieving ROTE of 15% will require a bold transformation of our business portfolio. We will shift risk assets from low-return overseas lending to areas with higher growth and profitability, specifically our Multi-franchise Strategy and investment banking business. Meanwhile, we will continue to strengthen our domestic lending business, which provides stable earnings, as well as asset-light businesses such as transaction banking and asset management. By building a well-balanced portfolio with profitability, growth, and stability, while improving returns in each business, we aim to raise our overall ROTE to 15%. Set 13% ROTE for FY3/29 as a milestone on the path to 15% ROTE. Aim for JPY 2tn in net income through cost discipline and improved RORA. Next Five Years and Beyond 15 % FY3/29 target Net income Net business profit Gross profit RWA 13 % Net business profit Gross profit RWA Tangible common equity CET1 ratio target c. 10.5% FY3/26 results 11.4 % 12 % JPY 2tn Low- 50 % Total expenses *2 flat or lower *3 + 0.5 % Improve financial leverage by utilizing unrealized gains 10.4 % *1 Macro assumption : Policy rate Japan: 1.25%, US: 3.0% FX: USD1=JPY150 *2 Excl. environmental factors, one-off factors, revenue linked variable costs, cost related to IT investment *3 Excl. impact from JPY interest rates rise Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 30 Three-Year Targets on the Path to 15% ROTE *1 ROE RORA Overhead ratio Net income ROTE As a milestone toward ROTE of 15%, we aim to reach ROTE of 13% in FY3/29. In order to achieve this, we will raise our net income to JPY 2tn through disciplined cost control, keeping our overhead ratio in the low-50% range, while improving RORA by 0.5%. In addition, we will begin exploring ways to utilize unrealized gains, which currently weigh significantly on our financial leverage. Mar.22 Mar.23 Mar.24 Mar.25 Feb.26 Mar.10 Mar.15 Mar.20 Mar.24 Mar.25 Feb.26 391 373 354 Domestic corporate loan balance *1 432 405 (JPY tn) Domestic deposit balance *3 (JPY tn) 640 637 629 506 255 338 Cashless payment amount *2 (JPY tn) 200 Cashless payment ratio 13 % 46 % Code payments 100 Credit card 0 2010 2015 2020 2025 Assume solid three-year growth supported by strong domestic funding demand. Closely monitor potential stress scenarios stemming from heightened geopolitical risks. Growth opportunities Risks Stress scenario *1 BOJ Time-Series Data (Loans/end of Period/Banking Accounts/Domestically Licensed Banks) *2 METI " Changes in the cashless payment amount and cashless payment ratios in Japan" *3 BOJ Time-Series Data (Ordinary Deposits/Liabilities and Stockholder's Equity) Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 31 Business Opportunities and Potential Risks Economic slowdown reducing customer activity Temporary increase in credit costs Intensifying competition for deposits Transformation of financial services through technology Further penetration of digital services Changes in investor/ fund capital flow Strong domestic corporate funding demand Rapid rise in geopolitical risks Emergence of financial crises In formulating this Medium-Term Management Plan, our base scenario assumes that solid economic conditions will continue both in Japan and overseas over the next three years, providing sustained business opportunities. At the same time, we will carefully manage our business while monitoring risks, including intensifying competition for yen deposits amid rising interest rates, weaker customer activity due to stagnation in Japan's economic re-growth, and overseas stress scenarios arising from geopolitical risks. Our Goals for the Next Three Years I Achieve market leadership in the domestic businesses II Transform business model in overseas Aim higher through bold transformation III Position technology as a core management pillar IV Deliver results through execution excellence V Elevate social value creation efforts Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 32 Business strategy Corporate infrastructure The new Medium-Term Management Plan has been formulated to realize our vision for the next five years and beyond, "Globally connected. Rooted in Japan. Your most trusted partner." Under the basic policy of "Aim higher through bold transformation," we will pursue the five objectives shown on the right. In the domestic businesses. we aim to achieve market leadership. Overseas, we will complete the structural reform initiated in the previous plan and build the foundation for future growth. We will also position technology as a core pillar of management to evolve both our business strategy and management infrastructure, thereby accelerating growth and transformation. The driving forces behind these initiatives are our strengths: execution excellence. Furthermore, we will further enhance our initiatives to create social value. Over the next three years, I will lead SMBC Group's transformation toward our vision and take the Group to its next stage of growth. Focus on seven key strategic areas to build the targeted business portfolio. Evolve the business model by expanding our customer base, enhancing earnings power, and generating synergies. I. Achieve market leadership in the domestic businesses II. Transform business model in overseas 6 Asset management Increase interest / fee income 2 3 Support Japanese 4 global companies Wealth management Domestic wholesale Solve complex challenges 5 CIB / S&T business Asia Increase deposit 1 Digital platform 7 Global transaction banking Transaction banking in Asia Leverage technology III. Position technology as a core management pillar Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 33 Seven Key Strategic Areas In the new Medium-Term Management Plan, we will focus on seven key strategic areas. In Japan, we see significant growth opportunities, including the expansion of cashless payments, rising wealth management needs, and strong corporate funding demand. In particular, in a positive interest rate environment, our ability to offer deposits, lending, payments, and wealth management in a integrated way represents a significant competitive advantage. We will expand our deposit base through our digital platform and connect this to growth in our corporate business and wealth management business, aiming to achieve the market leadership in the domestic businesses. Overseas, we will shift from our traditional loan-focused growth model to more capital-efficient CIB and S&T businesses, while also monetizing our Multi-Franchise Strategy in Asia. In addition, we will further strengthen asset management and digital-driven transaction banking both in Japan and overseas. Through these initiatives, we will expand our customer base, enhance earnings power, while generating synergies across strategic areas and evolving each of our business model. Let me walk you through each strategy on the following pages. ‌ Retail deposit FY3/29 300K JPY 3tn JPY 20bn JPY 80bn ⇒ JPY 110bn Wealth management JPY 10bn Payment JPY 10bn + Deposit JPY 80bn FY3/29 15mn FY3/28 12mn FY3/26 7.5mn Expected profit net business profit update # of accounts # of accounts / deposit balance FY3/26 54 K 20% of new companies apply Sales handled *3 Achieving profitability Continuously enhance services e.g. PayPay integration and AI-Olive FY3/26 FY3/29 Mar.26 Mar.29 FY3/29 FY3/26 FY3/25 55 + JPY 16tn 39 (JPY tn) 65.7 (JPY tn) + JPY 3tn 62.7 1. Establish Japan's Leading Digital Platform Olive and Trunk continue to expand steadily, leveraging their superior convenience. Olive net business profit is expected to reach JPY 110bn in FY3/29, with higher interest rates as an additional tailwind. *1 Annual ancillary transaction usage rate of Olive members in FY3/25 (credit card payments, FX deposits, investment trusts, etc. users / members) *2 Deposits/withdrawal transaction usage rate of Olive members in FY3/25 (excl. interest income). The active user rate of non-Olive members was 60% in FY3/25 *3 Excl. the large-scale transaction expected to roll off by FY3/29 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 34 Achieve market leadership in the domestic businesses I Corporate account Corporate card Expanded features (Scheduled in FY3/27) Accounting / DX End-to-end digital management of the transaction flow Finance Factoring Cross-sell ratio *1 Active user ratio *2 70 % 90 % of In our domestic digital platform strategy, we aim to establish leading platform by leveraging both "Olive" for individuals and "Trunk" for SMEs. Olive is the core of our retail strategy. Since its launch three years ago, it has grown to 7.5 million accounts and we plan to double this to 15 million accounts over the next three years. Olive users demonstrate exceptionally high cross-sell and active user ratio. Through successful collaborations with external partners, Olive has evolved into a platform deeply embedded in customers' daily lives. Olive related net business profit is expected to increased by JPY 30bn to JPY 110bn in FY3/29. Going forward, we aim to further enhance our competitive advantage by advancing the utilization of AI. Trunk, our solution for SMEs and startups, has acquired approximately 50,000 accounts in about one year since its launch and is approximately 20% of newly established companies in Japan now apply for it. We will continue to enhance its functionalities, including financing and accounting digital transformation and aim to reach 300,000 accounts and JPY 3tn in deposits by FY3/29. 2. Build Japan's largest wealth management AUM base Develop the wealth management business group-wide under the "SMBC Wealth" brand. Significantly expand AUM by combining face-to-face and digital channels tailored to customer needs. SMBC Wealth A group-wide integrated operation framework Enhanced sales structure Location network Product development Release in FY3/27 Provide digital wealth management services through the app *1 Investment trusts, fund wrap, discretionary portfolio management, and joint managed money trust in SMBC, SMBC Trust and SMBC Nikko Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 35 Offer group products through a one-stop solution Needs for wealth accumulation HNWIs Deliver specialized solutions on a group-wide basis corporates / individuals owners Corporate Needs for both AM *1 /Foreign currency deposit balance Mar. 26 JPY 23tn Mar. 29 JPY 28tn Face-to-face approach AUM Deposit JPY 10tn JPY 10tn Year 5 Olive Consulting Digital approah Olive Infinite Visa's highest tier Additional points for credit card installment investment Online Face-to-face AI chat Flexible consulting Flexible consultation channels Achieve market leadership in the domestic businesses I Under the unified brand "SMBC Wealth," we will strengthen our wealth management business on a group-wide basis, expanding AUM through both face-to-face and digital channels. In face-to-face channels, we will focus primarily on business owners and high-net-worth individuals, providing specialized solutions and asset-building proposals through a group-wide, one-stop approach. In digital channels, we will offer broader access to asset formation and investment opportunities to a wider range of customers. Olive Consulting, scheduled to launch during FY3/27, will offer "flexible consulting" that combine AI and face-to-face advisory services. We thereby expand our reach to the "digital affluent" segment that we have not been able to fully capture to date. By combining the convenience of digital solutions with the group's expertise, we aim to acquire JPY 10 tn in AUM and JPY 10 tn in deposits. FY3/26 FY3/29 target M&A 4th 2nd Equity 4th 1st Bond 2nd 1st Gross profit per employee *2 FY3/23 JPY 90mn FY3/26 JPY 150 mn 3. Establish Top-Tier Competitiveness in Japan's Corporate Banking Capture strong funding demand in Japan by strengthening coverage and solution capabilities across all segments. Enhance frontline capabilities through AI to build a competitive advantage in Japan's corporate banking business. Large corporates Mid-corporates Expect around 20 % ROTE *1 (JPY bn) 2,000 14.7 % 1,500 1,000 ROTE (Consolidate） 13% 11.4% 500 0 FY3/26 FY3/29 Frontline Execution Excellence *1 Excl. the sales of equity holdings *2 All of WS (Gross profit / total number of WS headcount ) Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 36 Selectively allocate assets Reduce low-return assets Sophisticate ROE management Profitability League table Gross profit / ROTE Deepen customer relationships P.34 SMEs Mid-corporates Strengthen the securities business Focus resources on growth areas Enhance CIB business Group-wide and global collaboration Large-corporates Strengthen global corporate coverage and capture large transactions Achieve market leadership in the domestic businesses I Elevate performance through AI Our domestic wholesale business is a key area that will drive profit growth over the next three years, supported by robust corporate activities and strong funding demand. We will leverage this opportunity and aim to establish top-tier competitiveness across all segments. In the large corporate business, we will build stronger capabilities for global, large-scale transactions by allocating resources in growth sectors, strengthening our global network, and deepening collaboration with Jefferies. The mid-sized corporate business, where we have longstanding strength, will continue to build on its leading customer base and earnings foundation. By expanding our securities capabilities, we will enhance our origination and execution for M&A, business succession, and growth investment needs. The SME business will expand touchpoints through Trunk, while building relationships with future growth companies and strengthening our deposit base. Across all corporate businesses, our core strength lies in our execution excellence. We will further evolve this strength through AI utilization, supporting Japan's economic re-growth while keep enhancing our earnings power. Collaborate with Jefferies ECM/M&A coverage Profit from collaborations* 1 (JPY bn) 14 9.6 4.9 FY3/24 FY3/25 FY3/26 # of collaborated deals 470 (FY3/26 cumulative) Enhance S&T business Japan and Asia edge USD business S&T revenue (JPY bn) 500 377 FY3/26 FY3/29 Expand underwriting and asset turnover Underwriting and securitization U.S. CLO league table *2 (Share) BofA Citi JPM BNP MS SMFG 0% 10% 12th Top 5 ranking (FY3/26) (FY3/29) 4. Strengthen Global CIB and S&T Business Shift from an asset-heavy model toward an asset-light, capital-efficient business model. Accelerate Global CIB through collaboration with Jefferies and establish S&T as another key growth driver. Reallocate business portfolio Ongoing Selective origination Sales of low-return assets (JPY bn) 1,500 ROTE 1,000 b s 500 Asset-light business 0 FY3/26 FY3/29 *1 Profit attributable to SMBC Group *2 Bloomberg (the results of FY3/26) Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 37 5.8% Asset usines 8.2% Transform business model in overseas II Exited U.S. digital banking business Freight car leasing Global CIB/S&T gross profit … Our overseas business will undertake a full-scale shift from an asset-heavy model, which relies on the balance sheet, to a more capital-efficient model where CIB and S&T businesses serve as key growth drivers. While continuing to reduce low-return assets, we will allocate resources to asset-light businesses with higher growth potential and profitability. We aim to increase the share of earnings from asset-light businesses by strengthening collaboration with Jefferies, expanding our S&T business, and enhancing our underwriting and asset turnover businesses. 4. Strengthen Global CIB and S&T Business -Collaboration with Jefferies- Leverage our combined strengths in joint marketing to expand our presence and build a solid track record. Capture large-scale and global transactions through an integrated approach in Japanese equities. Broad client coverage Deep sector expertise Our challenges Large-scale and global deals Wide range of financial solutions ECM M&A (JPY bn) 5.5 (JPY bn) 3.7 2.5 1.9 1.8 0.7 FY3/24 FY3/25 FY3/26 FY3/24 FY3/25 FY3/26 For issuers For investors Win large-scale, Enhance product capabilities global ECM mandates for corporates and from large Japanese corporates institutional investors Profit Contribution (Profit from collaborations and dividend income) FY3/26 JPY 22 bn FY3/31 JPY 50 bn Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 38 Reach to global investors Sophisticated IT platform Jefferies Japan Sales Japan ECM SMBC Nikko Transform business model in overseas II Achieve market leadership in the domestic businesses I AT&T Acquisition of spectrum licenses from EchoStar Tekscend Photomask Global IPO of a TOPPAN Holdings spin-off Global ECM Research Coverage Japan Research From Jan.27 Joint Venture of the Japan equities business Collaborative marketing leveraging combined strengths In the collaboration with Jefferies, we have steadily increased the profit by deepening collaboration areas such as ECM and M&A , supported by our combined marketing strengths. We are also making progress in preparations for the integration of our Japan equities business announced last September. Through this joint venture, we will further connect domestic issuers with global investors, thereby contributing to the financing for growth of Japanese companies. Moreover, we will significantly strengthen our Japan equities trading capabilities and further evolve SMBC Group's securities business. India Target the No.1 foreign bank position Large corporates Mid-size / SMEs No.6 Retail - SMBC - - YES BANK - by assets - SMICC - Business expansion/ Growth / Profitability Asset quality improvement Fee business growth improvement (JPY tn) Loan balance (JPY tn) Loan balance / ROA (JPY tn) Loan / NPL ratio 1.5 5.0 1.5 2.0% 1.0 0.8% 1.0 2.5 0.5 0.2% 0.5 1.2% 0.0 0.0 0.0 FY3/ 22 23 24 25 FY3/ 22 23 24 25 FY3/22 23 24 25 Indonesia Optimize funding costs Vietnam Capture V-shaped recovery The Philippines Grow deposits and high-margin lending Liquidity deposit ratio (FY3/23) (FY3/26) 35.0% 40.6% Net income (JPY bn) (2022) (2025) VPBank 94.7 146.1 FE (13.3) 2.9 Credit Net Interest Margin (2022) (2025) 3.7% 4.8% High-margin retail lending grew x 2.6 over three years 5. Monetize the Multi-Franchise Strategy Target No.1 among foreign banks in India, our top-priority market, through collaboration among SMBC, YES BANK, and SMICC. Accelerate initiatives in the other three countries to catch-up to the initial profit targets. ROTE ROI *2 20% 8.9% 9% 140 3.8% Initial target 120 (JPY bn) 50 FY3/26 FY3/29 *1 Based on local accounting standards, ROTE is calculated on a managerial accounting basis. *2 Net income contribution / Total investment amount Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 39 Transform business model in overseas II Net income contribution / ROI *1 Our Multi-Franchise Strategy has now entered the stage where we aim to realize the results of our past investments. In particular, India is a market with extremely high growth potential. By ensuring effective collaboration among SMBC's branch, YES BANK, and SMICC, we leverage our global network and local customer base to become the No.1 foreign bank position in India. In other regions, we advance initiatives tailored to the characteristics of each market. As a whole, we expect to achieve a net income contribution of JPY 140bn by FY3/29, adding growth in India to the initial target of JPY 120bn. While the Multi-franchise Strategy has not yet delivered the results initially expected, we are fully committed to monetizing with a strong sense of determination.

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