Sumitomo Mitsui Trust Group, Inc.TSE: 8309

Explanatory Material for 3QFY2025

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Explanatory Material

3rd Quarter of Fis cal Year 2025 ended on December 31, 2025

Table of Contents

1. Status of profit and loss

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1-2

2. Yields and margins

---------

3

3. Unrealized gains/ losses on investment securities

---------

3-4

4. Loans and Deposits (Banking a/c and principal guaranteed trust a/c combined)

---------

5

5. Non-Performing Loans (NPLs) based on Banking Act and Reconstruction Act

---------

6

(Banking a/c and principal guaranteed trust a/c combined)

Other referential financial figures of SuMiTB 7-9

Sumitomo Mitsui Trust Group (Consolidated): "SuMiTG" or "Consolidated"

Sumitomo Mitsui Trust Bank (Non-consolidated): "SuMiTB" 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 Group, Inc. hereby cautions against sole reliance on such forward-looking statements in making investment decisions.

Financial figures

1. Status of profit and loss

[Consolidated]

(Millions of Yen)

3QFY2025 3QFY2024 Change

(Cumulative total) (Cumulative total)

Full

FY2024

Consolidated gross business profit (*1)

1

674,359

635,389

38,970

851,971

Consolidated gross business profit

(after written-off of principal guaranteed trust a/c) (1 + 20)

2

674,359

635,389

38,970

851,971

Net interest income and related profit

3

(25,533)

(90,394)

64,860

(87,993)

Net interest income

4

(38,031)

(103,541)

65,509

(105,441)

Trust fees from principal guaranteed trust a/c

(before written-off of principal guaranteed trust a/c)

5

12,498

13,146

(648)

17,447

Net fees and commissions and related profit

6

364,179

337,098

27,080

464,156

Net fees and commissions

7

284,340

260,495

23,845

360,718

Other trust fees

8

79,838

76,603

3,235

103,437

Net trading profit

9

80,331

56,679

23,652

102,860

Net other operating profit

10

255,382

332,006

(76,624)

372,948

Net gains (losses) on foreign exchange transactions

11

234,962

308,619

(73,656)

368,665

Net gains (losses) on bonds

12

14,250

(8,196)

22,446

(41,523)

Net gains (losses) from derivatives other than for trading or hedging

13

(16,222)

9,403

(25,626)

15,803

General and administrative expenses

14

(416,637)

(395,130)

(21,506)

(532,939)

(excluding amortization of goodwill)

15

(413,619)

(390,079)

(23,540)

(526,204)

Personnel expenses

16

(179,668)

(174,931)

(4,736)

(235,728)

Non-personnel expenses excluding taxes

17

(222,338)

(206,547)

(15,791)

(279,361)

Taxes other than income taxes

18

(14,630)

(13,652)

(977)

(17,849)

Provision of general allowance for loan losses

19

(4,675)

13,283

(17,958)

(8,919)

Principal guaranteed trust a/c credit costs

20

-

-

-

-

Banking a/c credit costs

21

(1,224)

(17,998)

16,773

(16,836)

Written-off of loans

22

(1,661)

(432)

(1,229)

(7,481)

Provision of specific allowance for loan losses

23

556

(17,565)

18,122

(9,355)

Losses on sales of loans

24

(119)

-

(119)

-

Reversal of allowance for loan losses

25

-

-

-

-

Recoveries of written-off claims

26

1,815

770

1,045

1,129

Net gains (losses) on stocks

27

75,165

71,469

3,696

81,420

Losses on devaluation of stocks

28

(497)

(2,034)

1,536

(2,408)

Net income from affiliates by equity method

29

17,131

16,988

142

22,616

Others

30

(16,292)

(12,189)

(4,102)

(30,746)

Ordinary profit

31

329,642

312,581

17,060

367,694

Extraordinary profit (*2)

32

37,291

(1,085)

38,376

(13,260)

Income before income tax

33

366,933

311,496

55,437

354,433

Total income taxes

34

(96,932)

(84,481)

(12,451)

(95,294)

Income taxes-current

35

(111,509)

(80,409)

(31,100)

(105,191)

Income taxes-deferred

36

14,576

(4,071)

18,648

9,896

Net income

37

270,001

227,015

42,985

259,138

Net income attributable to non-controlling interests

38

(3,327)

(1,025)

(2,302)

(1,503)

Net income attributable to owners of the parent

39

266,673

225,990

40,682

257,635

Total credit costs (19 + 20 + 21 + 25 + 26)

40

(4,084)

(3,944)

(140)

(24,626)

(*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) Posted 41,210 million yen of gains on sales of stocks of subsidiaries and affiliates in 3QFY2025 (Cumulative total).

Consolidated net business profit before credit costs (*3) 41 296,791 272,946 23,845 362,036

(*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” <41>, 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

42

746,998

695,915

51,083

934,207

Substantial net fees and commissions and related profit

43

393,078

369,502

23,575

508,588

Substantial general and administrative expenses

44

(450,206)

(422,968)

(27,237)

(572,171)

Consolidated Fee income ratio

45

52.6%

53.1%

(0.5%)

54.4%

Net business profit before credit costs

46

68,546

72,346

(3,800)

73,123

Net income attributable to owners of the parent (*5)

47

48,286

44,591

3,694

18,072

Total credit costs

48

(1,299)

(1,847)

547

(1,488)

Net gains (losses) on stocks

49

(4,302)

7,585

(11,887)

7,502

(*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".

Dec. 2025

Mar. 2025

Change

Consolidated subsidiaries

50

57

58

(1)

Affiliates (subject to the equity method)

51

32

32

-

[Non-consolidated]

(Millions of Yen)

3QFY2025 3QFY2024

(Cumulative total) (Cumulative total)

Change

Full FY2024

(after written-off of principal guaranteed trust a/c) (1 + 22)

(before written-off of principal guaranteed trust a/c)

(*1) Including losses on devaluation of stocks of subsidiaries and affiliates in 3QFY2024 and Full FY2024.

(*2) 3QFY2025: Gains on sales of stocks of subsidiaries and affiliates, Full FY2024: Gains on extinguishment of tie-in shares.

Gross business profit 1

482,494

431,380

51,114

601,173

Gross business profit 2

482,494

431,380

51,114

601,173

Net interest income and related profit

3

(13,155)

(92,830)

79,674

(63,661)

Net interest income

4

(25,653)

(105,977)

80,323

(81,109)

Trust fees from principal guaranteed trust a/c 5

12,498

13,146

(648)

17,447

Net fees and commissions and related profit

6

177,895

158,299

19,596

223,448

Net fees and commissions

7

97,901

81,402

16,499

119,707

Other trust fees

8

79,993

76,896

3,096

103,741

Net trading income

9

80,331

56,679

23,652

102,860

Net other operating profit

10

237,423

309,232

(71,809)

338,526

Net gains (losses) on foreign exchange transactions

11

232,193

309,393

(77,200)

368,532

Net gains (losses) on bonds

12

13,519

(8,168)

21,688

(41,530)

Net gains (losses) from derivatives other than for trading or hedging

13

(7,236)

10,432

(17,669)

15,641

General and administrative expenses

14

(254,249)

(230,780)

(23,468)

(312,261)

Personnel expenses

15

(102,973)

(97,841)

(5,132)

(131,969)

Non-personnel expenses

16

(140,734)

(123,466)

(17,268)

(167,913)

Taxes other than income taxes

17

(10,541)

(9,473)

(1,067)

(12,378)

Net business profit before credit costs (1 + 14)

18

228,245

200,599

27,646

288,912

Core net operating profit (18-12)

19

214,725

208,768

5,957

330,443

Core net operating profit (excluding gains (losses) on cancellation of investment)

20

212,611

204,336

8,275

316,583

Provision of general allowance for loan losses

21

(5,028)

13,626

(18,654)

(9,421)

Principal guaranteed trust a/c credit costs

22

-

-

-

-

Net business profit

23

223,217

214,225

8,991

279,491

Net non-recurring profit

24

56,283

33,998

22,285

31,254

Banking a/c credit costs

25

565

(16,322)

16,887

(14,616)

Written-off of loans

26

(1,263)

(215)

(1,047)

(7,015)

Provision of specific allowance for loan losses

27

1,947

(16,106)

18,054

(7,601)

Losses on sales of loans

28

(119)

-

(119)

-

Reversal of allowance for loan losses

29

-

-

-

-

Recoveries of written-off claims

30

1,677

598

1,079

899

Net gains (losses) on stocks

31

79,467

63,883

15,583

73,917

Losses on devaluation of stocks (*1)

32

(797)

(11,795)

10,997

(13,303)

Others

33

(25,426)

(14,161)

(11,265)

(28,946)

Amortization of net actuarial losses/ prior service cost

34

(5,767)

2,083

(7,850)

2,777

Provision for contingent loss

35

(284)

130

(415)

205

Losses on investment in partnerships

36

(9,469)

(6,638)

(2,831)

(9,992)

Net gains (losses) on stock related derivatives

37

(531)

(2,477)

1,945

(1,894)

Ordinary profit

38

279,501

248,224

31,276

310,745

Extraordinary profit

39

25,246

(1,917)

27,164

(5,730)

Net gains (losses) on disposal of fixed assets

40

(882)

(296)

(586)

(1,106)

Impairment loss on fixed assets

41

(3,291)

(1,621)

(1,669)

(7,225)

Other (*2)

42

29,420

-

29,420

2,601

Income before income taxes

43

304,747

246,306

58,440

305,014

Total income taxes

44

(86,360)

(64,907)

(21,452)

(65,451)

Income taxes-current

45

(89,557)

(61,098)

(28,458)

(77,768)

Income taxes-deferred

46

3,197

(3,808)

7,006

12,316

Net income

47

218,387

181,399

36,988

239,563

Total credit costs (21 + 22 + 25 + 29 + 30)

48

(2,785)

(2,097)

(687)

(23,138)

Overhead ratio (-14/1)

49

52.69%

53.50%

(0.81%)

51.94%

  1. Yields and margins

    Domestic banking a/c

    [Non-consolidated]

    (%)

    3QFY2025 3QFY2025 1HFY2025 3QFY2024 Change from

    (Cumulative (Cumulative 3QFY2024

    total) total)

    Average yield on interest-earning assets (A)

    0.89

    0.84

    0.92

    0.57

    0.32

    Loans and bills discounted (B)

    1.06

    1.10

    1.03

    0.75

    0.31

    Securities

    1.67

    1.03

    2.04

    1.48

    0.19

    Average yield on interest-bearing liabilities (C)

    0.48

    0.55

    0.45

    0.18

    0.30

    Deposits (D)

    0.37

    0.43

    0.33

    0.12

    0.25

    Gross margin (A) - (C)

    0.41

    0.29

    0.47

    0.39

    0.02

    Loan-deposit margin (B) - (D)

    0.69

    0.67

    0.70

    0.63

    0.06

  2. Unrealized gains/ losses on investment securities

[Consolidated]

(Billions of Yen)

Cost

Dec. 2025

Net Unrealized

gains

Unrealized losses

Sep. 2025

Cost Net

Change from Sep. 2025

Cost Net

Mar. 2025

Cost Net

Available-for-sale securities (*1)

13,367.5

513.4

705.5

(192.0)

13,116.4

556.0

251.0

(42.5)

9,939.2

496.4

Japanese stocks (*2)

315.5

635.3

647.4

(12.0)

331.8

607.4

(16.2)

27.9

361.5

523.6

Japanese bonds

6,878.9

(151.3)

1.5

(152.8)

7,398.4

(78.4)

(519.4)

(72.8)

5,833.8

(46.5)

Government bonds

6,182.0

(139.2)

0.0

(139.2)

6,707.9

(69.1)

(525.9)

(70.1)

5,121.2

(37.4)

Local government bonds

43.6

(2.2)

-

(2.2)

44.1

(1.7)

(0.4)

(0.4)

45.2

(1.7)

Corporate bonds

653.3

(9.9)

1.4

(11.4)

646.3

(7.5)

6.9

(2.3)

667.3

(7.2)

Others

6,173.0

29.4

56.6

(27.1)

5,386.2

27.1

786.8

2.3

3,743.8

19.2

Foreign government bonds

5,701.1

10.2

25.7

(15.5)

4,869.8

11.7

831.3

(1.5)

3,192.2

1.8

Held-to-maturity debt securities

452.5

(12.8)

0.5

(13.4)

179.2

1.8

273.2

(14.7)

184.5

2.7

(*1) Not including stocks with no market price and investment in 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]

(Billions of Yen)

Cost

Dec. 2025

Net Unrealized

gains

Unrealized losses

Sep. 2025

Cost Net

Change from Sep. 2025

Cost Net

Mar. 2025

Cost Net

Available-for-sale securities (*1)

13,048.1

517.8

707.8

(189.9)

12,802.2

563.6

245.9

(45.7)

9,776.7

505.2

Japanese stocks (*2)

300.4

650.3

662.3

(11.9)

314.4

624.7

(13.9)

25.5

342.6

542.5

Japanese bonds

6,878.9

(151.3)

1.5

(152.8)

7,398.4

(78.4)

(519.4)

(72.8)

5,833.8

(46.5)

Government bonds

6,182.0

(139.2)

0.0

(139.2)

6,707.9

(69.1)

(525.9)

(70.1)

5,121.2

(37.4)

Local government bonds

43.6

(2.2)

-

(2.2)

44.1

(1.7)

(0.4)

(0.4)

45.2

(1.7)

Corporate bonds

653.3

(9.9)

1.4

(11.4)

646.3

(7.5)

6.9

(2.3)

667.3

(7.2)

Others

5,868.7

18.8

43.9

(25.1)

5,089.3

17.3

779.3

1.4

3,600.2

9.1

Held-to-maturity debt securities

452.5

(12.8)

0.5

(13.4)

179.2

1.8

273.2

(14.7)

184.5

2.7

(*1) Not including stocks with no market price and investment in 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