SMFG FY2026 Net Income Surges 34% to ¥1.58 Trillion as Ordinary Profit Hits Record ¥2.30 Trillion

Sumitomo Mitsui Financial Group, Inc. (TSE: 8316), one of Japan's three megabanks and parent of Sumitomo Mitsui Banking Corporation (SMBC), reported its full-year results for FY2026 (the twelve months ended March 31, 2026) on May 13, 2026. Consolidated ordinary income rose 6.1% year-on-year to ¥10,790,853 million, while ordinary profit surged 34.0% to ¥2,303,350 million — both representing the strongest results in the group's history. Net income attributable to owners of the parent increased 34.4% to ¥1,582,973 million, up from ¥1,177,996 million in FY2025. Earnings per share climbed to ¥411.97 from ¥301.55, reflecting the share count adjusted for the 1:3 stock split implemented in October 2024.

The results substantially exceeded initial guidance and marked a step-change in profitability driven by rising interest rates in Japan, strong fee income across investment banking and asset management, and an improvement in equity-method investment income — which swung from a loss of ¥5,504 million in FY2025 to a gain of ¥137,710 million in FY2026. Return on equity advanced to 10.4% from 8.0% the prior year, while the ratio of ordinary profit to ordinary income rose to 21.3% from 16.9%, underscoring the leverage of the earnings model to the improving rate environment.

Balance sheet expands as total assets cross ¥328 trillion

Total consolidated assets reached ¥328,511,145 million (approximately ¥328.5 trillion) at the fiscal year-end, up from ¥306,282,015 million a year earlier — an expansion of more than ¥22 trillion, reflecting loan book growth, higher securities valuations, and the consolidation of CCCMKホールディングス (CCCMK Holdings) as a new subsidiary. Net assets grew to ¥15,933,144 million from ¥14,841,509 million, while the equity ratio held steady at 4.8%, consistent with megabank leverage norms. Shareholders' equity specifically stood at ¥15,785,457 million, giving a book value per share of ¥4,135.71, up from ¥3,795.62. Comprehensive income for the year came in at ¥2,129,077 million, a near-tripling versus the ¥712,549 million recorded in FY2025, driven by unrealised gains on securities and favourable foreign currency translation.

Dividend raised to ¥157; 1:2 stock split announced for September 2026

SMFG increased its annual dividend for FY2026 to ¥157 per share (¥78 interim + ¥79 year-end), up from an adjusted ¥122 in FY2025, with a payout ratio of 38.0%. The board also resolved on May 13, 2026 to carry out a further 1:2 stock split with a record date of September 30, 2026. For FY2027, the dividend forecast on a pre-split basis is ¥180 per share (payout ratio approximately 40%), which adjusts to ¥90 interim + ¥45 year-end on a post-split basis. The board simultaneously approved a share buyback programme, whose cost is factored into the FY2027 payout-ratio guidance.

FY2027 net income guided at ¥1.70 trillion (+7.4%)

For the fiscal year ending March 2027, SMFG guided net income attributable to owners at ¥1,700,000 million, representing growth of 7.4% over the FY2026 result. The group provided EPS guidance of ¥223.75 on a post-split basis, reflecting the October 2024 and anticipated September 2026 splits. The guidance implies continued earnings momentum, supported by the domestic rate-hike cycle, resilient corporate lending spreads, and ongoing cost discipline across the SMBC group network. No separate ordinary income or ordinary profit guidance was provided in the tanshin — net income is the single disclosed guidance line, consistent with Japanese banking disclosure practice.

* FY2025 dividend restated on a split-adjusted basis (original annual dividend was ¥366 pre-October 2024 split; post-split adjusted comparator is ¥122).

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