Summary of Financial Results
Summary of Financial Results for 1HFY2023
Sumitomo Mitsui Trust Holdings (Consolidated)
- ”Net business profit before credit costs” <1> decreased by 1.9 billion yen YoY to 166.3 billion yen, maintaining the same level of profit. Compared to 1HFY2022, the strong corporate credit related fees and positive impact of rise in stock price and weaker yen were contributed while effective interest related earnings decreased mainly due to funding costs increasing as overseas interest rates rise which had been expected at the beginning of FY2023, and substantial G&A expenses increased mainly due to investments in human capital and IT and expenses linked with gross business profit increases.
- ”Net income attributable to owners of the parent” <3> decreased by 59.9 billion yen YoY to 44.0 billion yen mainly due to decrease of “Net gains on stocks” <5>. Decrease of “Net gains on stocks” was due to the reduction and change of in the bear fund position in light of structural changes in the macro environment, although accelerating reduction of strategic shareholdings.
(Billions of Yen)
| 1HFY2022 | 1HFY2023 | Change | ||
|---|---|---|---|---|
| Net business profit before credit costs*1 | 1 | 168.2 | 166.3 | (1.9) |
| Ordinary profit | 2 | 145.1 | 51.5 | (93.5) |
| Net income attributable to owners of the parent | 3 | 104.0 | 44.0 | (59.9) |
| Total credit costs | 4 | (8.8) | (1.7) | 7.1 |
|---|---|---|---|---|
| Net gains on stocks | 5 | (2.5) | (95.4) | (92.9) |
| Shareholder ROE | 6 | 7.63% | 3.07% | (4.56%) |
|---|
(Per share information)
| Earnings per common share (EPS) (Yen) | 7 | 279.82 | 121.35 | (158.47) |
|---|---|---|---|---|
| Net assets per common share (BPS) (Yen) | 8 | 7,406.89 | 8,107.79 | 700.90 |
(Difference from non-consolidated financial results)*2
| Net business profit before credit costs | 9 | 42.1 | 14.1 | (27.9) |
|---|---|---|---|---|
| Net income attributable to owners of the parent *3 | 10 | 21.6 | (4.8) | (26.4) |
| Total credit costs | 11 | 0.0 | (1.0) | (1.0) |
|---|---|---|---|---|
| Net gains on stocks | 12 | (2.0) | 1.5 | 3.5 |
*1Consolidated net business profit before credit costs = Net business profit before credit costs of Sumitomo Mitsui Trust Bank (Non-consolidated) + Ordinary profit of other subsidiary companies (non-recurring effect adjusted) + Ordinary profit of affiliates (non-recurring effect adjusted) x Ratio of equity holdings – Intra-group transaction (dividends, etc.)
*2Difference from Sumitomo Mitsui Trust Bank (Non-consolidated)
*3Differences between Net income attributable to owners of the parent (Consolidated) and Net income (Non-consolidated).
<Reference>Sumitomo Mitsui Trust Bank (Non-consolidated)
(Billions of Yen)
| 1HFY2022 | 1HFY2023 | Change | ||||
|---|---|---|---|---|---|---|
| Gross business profit | 13 | 254.9 | 294.3 | 39.3 | ||
| Gross business profit | Net interest income and related profit | 14 | 110.1 | (0.3) | (110.5) | |
| Gross business profit | Net fees and commissions and related profit | 15 | 90.8 | 94.4 | 3.5 | |
| Gross business profit | Net trading profit | 16 | (31.7) | (8.6) | 23.1 | |
| Gross business profit | Net other operating profit | 17 | 85.5 | 208.8 | 123.2 | |
| Gross business profit | Net other operating profit | o/w Net gains on foreign exchange transactions | 18 | 84.0 | 187.6 | 103.6 |
| Gross business profit | Net other operating profit | o/w Net gains on bonds | 19 | (25.8) | (2.7) | 23.1 |
| Gross business profit | Net other operating profit | o/w Net gains from derivatives other than for trading or hedging | 20 | 28.0 | 25.1 | (2.8) |
| General and administrative expenses | 21 | (128.7) | (142.1) | (13.3) | ||
| Net business profit before credit costs | 22 | 126.1 | 152.1 | 26.0 | ||
| Net non-recurring profit | 23 | (20.5) | (105.1) | (84.5) | ||
| Net non-recurring profit | Total credit costs | 24 | (8.9) | (0.6) | 8.2 | |
| Net non-recurring profit | Net gains on stocks | 25 | (0.5) | (97.0) | (96.5) | |
| Net non-recurring profit | Others | 26 | (6.8) | (7.4) | (0.5) | |
| Ordinary profit | 27 | 109.8 | 47.0 | (62.8) | ||
| Extraordinary profit | 28 | (0.5) | 1.0 | 1.5 | ||
| Income before income taxes | 29 | 109.3 | 48.0 | (61.2) | ||
| Total income taxes | 30 | (26.9) | 0.8 | 27.7 | ||
| Net income | 31 | 82.4 | 48.9 | (33.5) | ||
| Overhead ratio (OHR) (-21 / 13) | 32 | 50.52% | 48.29% | (2.23%) |
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