6-K 1 d384637d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of July 2012

Commission File Number 001-34919

SUMITOMO MITSUI FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

   Form 20-F  x    Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

   ¨   

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

   ¨   

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

   Yes  ¨    No  x

*If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

   82-                   


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Sumitomo Mitsui Financial Group, Inc.

By:

 

/s/ Haruyuki Nagata

 

Name:

 

Haruyuki Nagata

 

Title:

 

General Manager, Financial Accounting Dept.

Date:    July 24, 2012


Sumitomo Mitsui Financial Group, Inc.

Notice Regarding the Filing of an Annual Report on Form 20-F

with the U.S. Securities and Exchange Commission

TOKYO, July 24, 2012 — Sumitomo Mitsui Financial Group, Inc. (“SMFG”, President: Koichi Miyata) hereby announces that, on July 23, 2012 (Eastern Daylight Time), SMFG filed an annual report on Form 20-F with the U.S. Securities and Exchange Commission (“SEC”).

A copy of the annual report on Form 20-F can be viewed and obtained at SMFG’s website at http://www.smfg.co.jp/english/investor/financial/annual.html or on EDGAR, the SEC’s Electronic Data Gathering, Analysis, and Retrieval system. Holders of SMFG’s American Depositary Receipts may request a hard copy of SMFG’s complete audited financial statements free of charge through SMFG’s website.

(Attachment)

(Reference 1)     Consolidated Financial Statements (IFRS)

(Reference 2)     Reconciliation with Japanese GAAP

 

This document contains a summary of SMFG’s consolidated financial information under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board that was disclosed in its annual report on Form 20-F filed with the U.S. Securities and Exchange Commission on July 23, 2012. This document does not contain all of the information in the Form 20-F that may be important to you. You should read the entire Form 20-F carefully to obtain a comprehensive understanding of SMFG’s business and financial data under IFRS and related issues.

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 SMFG and its management with respect to SMFG’s future financial condition and results of operations. In many cases but not all, these statements contain words such as “anticipate”, “estimate”, “expect”, “intend”, “may”, “plan”, “probability”, “risk”, “project”, “should”, “seek”, “target” and similar expressions. Such forward-looking 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 contained or deemed to be contained herein. The risks and uncertainties which may affect future performance include: deterioration of Japanese and global economic conditions and financial markets; declines in the value of SMFG’s securities portfolio; SMFG’s ability to successfully implement its business strategy through its subsidiaries, affiliates and alliance partners; exposure to new risks as SMFG expands the scope of its business; and incurrence of significant credit-related costs. Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of the date of this document. SMFG undertakes no obligation to update or revise any forward-looking statements. Please refer to SMFG’s most recent disclosure documents such as its annual report or registration statement on Form 20-F and other documents submitted to the U.S. Securities and Exchange Commission, as well as earnings press releases, for a more detailed description of the risks and uncertainties that may affect SMFG’s financial condition and results of operations, and investors’ decisions.

 

– 1 –


(Reference 1) Consolidated Financial Statements (IFRS)

Consolidated Statement of Financial Position

(In millions)

     At March 31,
2011
    At March 31,
2012
 

Assets:

   

 

Cash and deposits with banks

   ¥ 9,436,358      ¥ 8,050,562    

 

Call loans and bills bought

    862,667        1,297,082    

 

Reverse repurchase agreements and cash collateral on securities borrowed

    5,051,053        4,937,025    

 

Trading assets

    3,315,153        4,461,258    

 

Derivative financial instruments

    4,975,973        5,901,526    

 

Financial assets at fair value through profit or loss

    2,132,348        2,150,409    

 

Investment securities

    34,662,106        37,324,100    

 

Loans and advances

    71,020,329        72,536,813    

 

Investments in associates and joint ventures

    201,135        206,660    

 

Property, plant and equipment

    1,039,483        1,045,006    

 

Intangible assets

    769,677        899,167    

 

Other assets

    1,924,070        2,367,300    

 

Current tax assets

    53,708        65,298    

 

Deferred tax assets

    1,026,867        632,220    

 

Total assets

   ¥         136,470,927      ¥         141,874,426    

 

Liabilities:

   

 

Deposits

   ¥ 90,469,098      ¥ 92,853,566    

 

Call money and bills sold

    2,629,407        2,144,600    

 

Repurchase agreements and cash collateral on securities lent

    6,439,598        7,487,633    

 

Trading liabilities

    1,623,918        2,173,567    

 

Derivative financial instruments

    4,725,261        5,850,813    

 

Borrowings

    12,548,358        10,412,858    

 

Debt securities in issue

    5,890,388        7,377,742    

 

Provisions

    96,353        425,350    

 

Other liabilities

    4,422,166        5,401,790    

 

Current tax liabilities

    49,448        61,786    

 

Deferred tax liabilities

    25,727        69,330    

 

Total liabilities

    128,919,722        134,259,035    

 

Equity:

   

 

Capital stock

    2,337,896        2,337,896    

 

Capital surplus

    1,081,556        862,933    

 

Retained earnings

    1,974,069        2,162,696    

 

Other reserves

    280,783        437,177    

 

Treasury stock

    (171,761     (236,037)   

 

Equity attributable to shareholders of Sumitomo Mitsui Financial Group, Inc.

    5,502,543        5,564,665    

 

Non-controlling interests

    2,048,662        2,050,726    

 

Total equity

    7,551,205        7,615,391    

 

Total equity and liabilities

   ¥ 136,470,927      ¥ 141,874,426    

 

– 2 –


Consolidated Income Statement

(In millions, except per share data)

     For the fiscal year ended March  31,  
     2011      2012  

 

Interest income

  ¥   1,720,181       ¥ 1,710,331   

 

Interest expense

    311,056         313,631   

 

Net interest income

    1,409,125         1,396,700   

Fee and commission income

    806,704         869,407   

 

Fee and commission expense

    132,560         132,562   

 

Net fee and commission income

    674,144         736,845   

Net trading income

    324,479         182,296   

 

Net income from financial assets at fair value through profit or loss

    30,116         33,734   

 

Net investment income

    235,911         239,365   

 

Other income

    204,470         245,563   

 

Total operating income

    2,878,245         2,834,503   

Impairment charges on financial assets

    433,928         284,310   

 

Net operating income

    2,444,317         2,550,193   

General and administrative expenses

    1,293,546         1,366,705   

 

Other expenses

    212,292         239,292   

 

Operating expenses

    1,505,838         1,605,997   

Share of post-tax loss of associates and joint ventures

    5,796         25,004   

 

Profit before tax

    932,683         919,192   

Income tax expense

    361,165         461,194   

 

Net profit

  ¥ 571,518       ¥ 457,998   

Profit attributable to:

    

 

Shareholders of Sumitomo Mitsui Financial Group, Inc.

  ¥ 464,007       ¥ 345,430   

 

Non-controlling interests

    107,511         112,568   

Earnings per share:

    

 

Basic

  ¥ 328.32       ¥ 248.98   

 

Diluted

    328.31         248.29   

 

– 3 –


Consolidated Statement of Comprehensive Income

(In millions)

           For the fiscal year ended March  31,  
           2011     2012  

Net profit

     ¥ 571,518      ¥ 457,998    

Other comprehensive income:

      

Available-for-sale financial assets:

      

Gains (losses) arising during the period, before tax

       (349,080     253,865    

Reclassification adjustments for (gains) losses included in net profit, before tax

       10,957        (21,563)   

Exchange differences on translating the foreign operations:

      

Losses arising during the period, before tax

       (121,593     (34,781)   

Reclassification adjustments for (gains) losses included in net profit, before tax

       (505     7,350    

Share of other comprehensive loss of associates and joint ventures

       (4,225     (2,832)   

Income tax relating to components of other comprehensive income

       146,520        (43,809)   

Other comprehensive income (loss), net of tax

       (317,926     158,230    

Total comprehensive income

     ¥ 253,592      ¥ 616,228    

Total comprehensive income attributable to:

      

Shareholders of Sumitomo Mitsui Financial Group, Inc.

     ¥ 189,372      ¥ 501,316    

Non-controlling interests

       64,220        114,912    

 

– 4 –


(Reference 2) Reconciliation with Japanese GAAP

 

            (In billions)           
           

At and for the fiscal year ended

March 31, 2012

          
              Total equity     Net profit           
 

 

IFRS

  ¥     7,615.4      ¥         458.0        
 

 

Differences arising from different accounting for:

          
   

 

1. Scope of consolidation

    80.4        1.1        
   

 

2. Derivative financial instruments

    130.3        56.5        
   

 

3. Investment securities

    (130.8     43.2        
   

 

4. Loans and advances

    (138.1     5.1        
   

 

5. Investments in associates and joint ventures

    27.5        (23.4     
   

 

6. Property, plant and equipment

    (5.1     (6.1     
   

 

7. Lease accounting

    (15.5     5.3        
   

 

8. Defined benefit plans

    31.0        (34.3     
   

 

9. Deferred tax assets

    (321.2     166.9        
   

 

10. Foreign currency translation

    -        (0.6     
   

 

Others

    (87.4     (13.0     
   

 

Tax effect of the above

    68.5        (17.1     
 

 

Japanese GAAP

  ¥ 7,255.0      ¥ *641.6        

(*)Includes a net profit of 123.1 billion yen attributable to non-controlling interests.

A brief explanation of adjustments with significant impacts arising from differences in equity and/or net profit between Japanese GAAP and IFRS is provided below. For a more detailed explanation, please refer to “Item 5. Operating and Financial Review and Prospects — Reconciliation with Japanese GAAP” in the annual report on Form 20-F filed on July 23, 2012 (Eastern Daylight Time).

Scope of Consolidation (Item 1)

 

   

Under IFRS, the SMFG Group consolidates an entity when it “controls” the entity. Control is generally presumed to exist when the SMFG Group has the power to govern the financial and operating policies by owning more than half of the voting power, or by legal or contractual arrangements.

   

A special purpose entity (“SPE”) is consolidated under IFRS when the substance of the relationship between the SPE and the SMFG Group indicates that the SPE is controlled by the SMFG Group. Therefore certain SPEs such as securitization vehicles and investment funds which are not consolidated under Japanese GAAP are consolidated under IFRS.

 

– 5 –


Derivative financial instruments (Item 2)

(Hedge accounting)

 

   

The SMFG Group applies hedge accounting under Japanese GAAP. However, the conditions for hedge accounting under IFRS are not fully the same as those under Japanese GAAP. The SMFG Group does not apply hedge accounting under IFRS and reversed the effects of hedge accounting under Japanese GAAP.

(Fair value measurement of derivative financial instruments)

 

   

Japanese GAAP and IFRS require Over-the-Counter (“OTC”) derivatives (non-exchange traded derivatives) to be measured at fair value. In principle, there is no significant difference in the definitions of fair value, but in practice there is diversity in the application of valuation techniques used for fair value under Japanese GAAP and IFRS. Therefore, to meet the requirements of fair value under IFRS, adjustments have been made to the fair values under Japanese GAAP to reflect the spread between bid and ask prices, as well as credit risk adjustments for OTC derivatives.

Investment securities (Item 3)

(Fair value measurement of investment securities)

 

   

Under IFRS, available-for-sale financial assets (and financial assets at fair value through profit or loss) should be measured at fair value. The fair value of financial instruments where there is no quoted price in an active market is determined by using valuation techniques.

 

   

In addition, the fair values of certain financial instruments under Japanese GAAP have been adjusted in order to meet the requirements of fair value under IFRS. For example, the last 1-month average of the closing transaction prices can be used for the fair value measurement of available-for-sale financial assets (listed stocks) under Japanese GAAP, whereas closing spot prices are used under IFRS.

(Impairment of available-for-sale financial assets)

 

   

Under IFRS, the SMFG Group assesses whether there is objective evidence that available-for-sale financial assets are impaired. For available-for-sale equity instruments, objective evidence of impairment includes a significant or prolonged decline in the fair value below cost.

Loans and advances (Item 4)

(Impairment of loans and advances)

 

   

Under Japanese GAAP, the reserve for possible loan losses for specifically identified significant loans is calculated by using the discounted cash flow (“DCF”) method, which is based on the present value of reasonably estimated cash flows discounted at the original contractual interest rate of the loan. Under IFRS, the allowance for loan losses for individually significant impaired loans is calculated by using the DCF method based on the best estimate of cash flows discounted at the original effective interest rate. In addition, the scope of the loans that are subject to the DCF method under IFRS is wider than that under Japanese GAAP.

 

   

Under IFRS, the allowance for loan losses for the remaining loans is collectively calculated by homogeneous group using statistical methods based on the historical loss experience and incorporating the effect of the time value of money. A qualitative analysis based on related economic factors is then performed to reflect the current conditions at the end of the reporting period. Under IFRS, the allowance for the non-impaired loan losses is calculated as the incurred but not yet identified losses for the period between the impairment occurring and the loss being identified, although the allowance under Japanese GAAP is calculated based on the expected losses.

 

– 6 –


(Loan origination fees and costs)

 

   

Under IFRS, loan origination fees and costs that are incremental and directly attributable to the origination of a loan are deferred and thus, included in the calculation of the effective interest rate.

Deferred tax assets (Item 9)

 

   

Under IFRS, deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized, without limiting the period over which the temporary difference can be utilized. For example, deferred tax assets for deductible temporary differences relating to impairment of loans and advances and investment securities which cannot be utilized within the specified period are not recognized under Japanese GAAP, whereas they can be recognized under IFRS to the extent that it is probable that future taxable profit will be available.

 

– 7 –