Sumitomo Mitsui Financial : Presentation Material

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. This document contains "forward-looking statements" (as defined in the U.S. Private 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 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 operating results, and investors' decisions. FX rates (TTM) Mar. 25 Mar. 26 USD 149.53 159.90 EUR 162.05 183.44 FX rates (average) USD 152.57 151.06 EUR 163.65 175.53 ▶ Definitions SMFG Sumitomo Mitsui Financial Group, Inc. 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) Expenses (non-consolidated) Excl. non-recurring losses Net business profit Before provision for general reserve for possible loan losses 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 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 1 Agenda Ⅰ Ⅱ Ⅲ Financial Results ////////////////////////////////////////////// 3 ////////////////////////////// New Medium-Term Management Plan /////// 24 Capital Policy ////////////////////////////////////////////////// 52 Appendix ///////////////////////////////////////////////////////// 60 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 2 ‌Financial Results of FY3/2026 Results of FY3/26 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. (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 FY3/26 (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 - ▶ Breakdown of net income 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) *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 Target of FY3/27 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 (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 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 Income Statement Net income 1,583.0 +405.0 +34% +83.0 (JPY bn) Gross profit 4,844.7 +717.9 G&A expenses 2,651.5 +249.6 Overhead ratio 54.7% (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 vs. target YoY FY3/26 Gross profit: despite a bond portfolio rebalancing: (60) and sales of low-return assets: (30), increased YoY due to 1 1) increase of net interest income in domestic market increase of fee income in domestic wholesale business, and good performance in wealth management business, 2 payment business and consumer finance. Impact of FX *1 : +65 3 ⚫ G&A expenses: increased YoY mainly due to inflation and higher variable marketing costs, while the overhead ratio significantly 4 improved on top-line growth. Impact of FX *1 : +29 5 ⚫ Equity in gains of affiliates: increased YoY due to absence of 6 the impairment in Vietnam: +135 Impact of FX *1 : +4 7 ⚫ Total credit cost: increased due to 8 1) forward-looking provisions preparing for the potential risks initiated by the Middle East tensions: +65 9 2) disposal of NPL at OTO/SOF: +31 10 ⚫ Gains on stocks: decreased YoY despite Kotak share sales: +94, lower gains on sales of equity holdings: +386 (YoY(99)), and 11 loss on Bank of East Asia share sale: (28) ROE incl. OCI *2 10.4% +2.4% ROE *3 13.8% +3.0% Others: increased due to the absence of an allowance on interest repayment of consumer finance: +140 , despite the loss from forward 12 dealings which aim to mitigate risk of stock prices: (32) 13 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 (Ref.) Group Companies ▶ SMBC ▶ Other Major Group Companies vs. target YoY FY3/26 (left : results of FY3/26 / right : YoY) SMBC Nikko *1 SMCC *2 (JPY bn) 1 Gross banking profit 2,677.9 +421.3 2 o/w Net interest income 1,946.3 +295.0 o/w Gains (losses) on cancellation 3 of investment trusts 65.4 (18.6) 4 Domestic 1,148.0 +300.2 5 Overseas 798.3 (5.1) 6 o/w Net fees and commissions 620.0 +74.1 7 Domestic 298.5 +46.7 8 Overseas 321.4 +27.4 9 o/w Net trading income Net other operating income 107.6 +51.5 10 o/w Gains (lossses) on bonds (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 15 Gains (losses) on stocks Extraordinary gains (losses) 426.7 (59.4) 66.0 +97.6 (JPY bn) 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 (Equity method affiliate) 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) 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 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.) Net Business Profit and Net Income Breakdown ▶ Net Business Profit Breakdown by Business Unit ▶ Net Income Breakdown by Group Company SMCC *3 105.7 SMBC Trust 26.4 SMFL 60.0 SMDAM 5.8 Others SMFG 1,583.0 SMBC 1,411.7 SMBC Nikko *2 128.3 Overseas Banking Subsidiaries 113.1 Eliminated in consolidated basis *1 (240) (JPY bn) (JPY bn) Others 2,330.9 WS +213.5 GB +16.3 GM +39.0 RT +139.4 Absence of impairment of VPBank and FE Credit in Vietnam (+135) 1,719.3 FY3/25 FY3/26 RT WS GB 市場 そ の他 *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 Impact of Rising JPY Interest Rates 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 Reflects the lagged impacts and B/S changes Year 1 Year 5 +JPY 110bn *1 +JPY 150 bn *1 +JPY 100bn JPY B/S as of Mar.26 (JPY tn) Impact on NII (JPY bn) Upside Loan volume growth, spread expansion JGB portfolio optimization 120 110 Investment Funding 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 +100 110 30 110 120 FY3/26 FY3/27 FY3/31 Policy rate 150 150 150 ⇒ 75bps (Dec.25) ⇒ 50bps (Jan.25) Lift of the NIRP *2 (Mar.24) ⇒ 25bps (Jul.24) *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 Gross Profit 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 Trading Income + Net Other Operating Income ▶ Net Interest Income ▶ Net Fees and Commissions (JPY bn) SMBC Overseas banking subsidiaries 2,719.6 SMBC Nikko SMCC *1 SMICC Others 269.6 320.3 532.5 595.6 211.7 166.3 545.8 620.0 398.3 65.4 *2 261.7 126.0 382.4 1,946.3 1,651.3 84.0 *2 2,338.2 101.3 258.0 1,820.6 1,559.2 292.8 65.4 88.6 27.1 75.2 27.9 107.6 56.0 66.9 219.6 FY3/25 FY3/26 Eliminated in consolidated basis *3 FY3/25 FY3/26 FY3/25 FY3/26 *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 (Ref.) Net Interest Income (SMBC) ▶ Domestic ▶ Overseas Income from loans and deposits increased due to improved loan-to-deposit spread by higher interest rates and loan growth. 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. Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 11 ▶ Loan Balance ▶ Domestic Loan-to-Deposit Spread Loans *1 2H 1H YoY FY3/26 (%) 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 Balance (JPY tn) Spread (%) FY3/26 YoY *4 FY3/26 YoY (Ref.) Excl. loans to the Japanese government, etc. 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 ▶ Average Loan Balance and Spread *2 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 *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 Domestic Loans and Deposits *1 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) Mid-sized corporations and SMEs 28 26 24 22 20 18 16 Large corporations 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 Overseas 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 ▶ Loan to Deposit Spread excl. FX impact 288 290 285 295 289 80 77 82 86 84 105 117 113 122 123 102 96 90 86 82 (3)% (5)% +0% 8.0% Yield of loans and bills discounted Yield of deposits Loan to deposit spread 6.0% (6)% 4.0% 2.0% Mar.22 Mar.23 Mar.24 Mar.25 Mar.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 0.0% 1Q 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 FY3/23 FY3/24 FY3/25 FY3/26 Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 14 Asset Quality ▶ Credit Costs ▶ Non-Performing Loan Ratio *2 and Balance (JPY bn) Consolidated SMBC (JPY bn) Consolidated SMBC 388.4 344.5 340 274.0 210.2 115.5 (10bp) 150.8 (12bp) 96.3 (8bp) 86.0 (7bp) 90 0.52% 0.52% 0.43% 0.71% 0.80% 0.81% 0.97% 0.67% 1,349.3 927.8 586.6 1,023.1 630.0 881.7 536.5 919.3 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27 forecast (JPY bn) Mar.23 Mar.24 Mar.25 Mar.26 Non-performing loan balance *3 (JPY bn) 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 SMBC (excl. claims to substandard borrowers) (JPY tn) Major group companies Claims on borrowers requiring caution YoY FY3/26 SMCC 126 +10 o/w SMBCCF 69 +10 Overseas banking subsidiaries 111 *1 +31 SMICC 43 +12 1.8 1.7 1.2 Total claims (JPY tn) Consolidated 126 131 139 SMBC 120 123 130 *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 Credit Costs 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) 388.4 344.5 provisions for Middle East 65 OTO/SOF 31 340 Forward-looking provisions for U.S. tariffs 90 292.4 Large-borrowers in Brazil 74 Initial forecast 300 Enhance head office oversight and local collection / credit monitoring capabilities Forward-looking Forward-looking provisions for Middle East Middle East tensions Inflation/ Higher rates Assumed Business risks disruptions in the Middle East Production cuts / operational suspensions due to inventory shortages Higher manufacturing Higher interest burden and rising and transportation material prices, costs etc. Target portfolio Resource Petrochemicals, energy, 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 Spillover effects Direct impact Estimate potential impacts under revenue-decline scenarios for portfolios likely to be affected FY3/25 FY3/26 FY3/27 forecast Forward-looking provision balance JPY 100bn Copyright © 2026 Sumitomo Mitsui Financial Group. All Rights Reserved. 16 Exposure to Private Credit, AI, and the Middle East SMBC Group's Exposure *1 Private Credit JPY 1.2 tn JPY 177tn ≤ 1% 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% 2% 2% Middle East JPY 3.5 tn AI JPY 4.0 tn Qatar JPY 1.3tn Saudi Arabia JPY 1.1tn UAE JPY 0.6tn Data Centers JPY 2.6tn < 1% of total exposure 80% of off-takers are hyperscalers 1% of total exposure Investment grade: > 80% Financials and Sovereign:70% 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 Securities ▶ Breakdown of Other Securities (Consolidated) ▶ Yen-Denominated Bonds (SMBC) (JPY bn) (JPY bn) B/S amount Unrealized gains (losses) Mar.26 vs Mar.25 Mar.26 vs Mar.25 Held-to-maturity 4,655.3 +4,380.9 (178.6) (172.5) 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 o/w Foreign bonds 18,534.8 +1,110.0 (300.4) +148.7 1 year or less ■ 1 to 5 years ■ 5 to 10 years ■ More than 10 years ▶ Foreign Bonds (SMBC) Risk volume is controlled by hedging and others (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 Reduction of Equity Holdings Reduction progress reached 52%, ahead of the 40% standard pace. Accelerate reductions through persistent client negotiations toward early plan achievement. (JPY tn) 6.09 3.82 Book value of domestic listed stock *1 Market value of domestic listed stock *1 Market value of equity holdings *2 / consolidated net assets 3.12 Reduction Total reduction JPY 309bn FY3/25 JPY 185bn FY3/26 JPY 124bn Consent of sales JPY 69bn 1.01 32.9% 2.76 0.83 27.3% 0.70 27.5% Reduce ahead of schedule Reduction plan (FY3/25-FY3/29) JPY (600)bn 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 Copyright © 2026 Sumitomo Mitsui Financial Group.

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