SuMi TRUST Holdings — Overview

Japan's only financial group specialized in trust banking

As a financial group with core trust banking operations, we command a dominant market position in many trust-related businesses.

No.1in asset management

Assets under management

116trn yen

No.1in asset administration

Assets under custody

239trn yen

No.1in corporate pensions

Balance of corporate pension funds

13trn yen

No.1in stock transfer agency services

Number of shareholders under administration

29.26million

SuMi TRUST Holdings — Strengths

Competitive advantage derived from a hybrid model of banking and trust services

As a dedicated trust bank group capable of providing banking services as well as specialized trust-related services, we offer a myriad of services to our clients. The strengths of the Group originate from this hybrid business model—it enables us to solve the numerous issues faced by our clients and furnishes us with a stable earnings structure largely impervious to the interest rate environment.

Business Lineup

Operating the businesses required by individuals, corporations, and investors

Individual clients

Meticulously meeting the needs of each generation of clients.

As we draw closer to an era in which more people will likely live to the age of 100, the financial services sought by individual clients are growing increasingly diversified. To address such wide-ranging needs across different age groups—namely, asset formation for the future, asset administration during old age, and asset inheritance to the next generation—we provide optimum services by way of high-quality, comprehensive consulting unique to a financial group specialized in trust banking.

Providing value to corporate clients

Addressing not just financial needs, but also growing non-financial needs.

For corporate clients, tackling issues that drive company growth is an urgent matter. Such issues might include the enhancement of corporate governance or sustainability initiatives, rather than just typical financial matters. We deliver versatile and highly specialized solutions that only a financial group specialized in trust banking can provide based on the acquisition and analysis of non-financial information.

Providing value to investor clients

Supporting clients at every stage of the investment chain.

Perpetually low interest rates are the reason why the needs of investor clients are growing increasingly diverse. As the only financial institution with the resources to handle nearly all asset management functions, including investment management, administration, and sale, the SuMi TRUST Group can deliver the best solutions to clients by undertaking multiple roles in the investment chain.

Financial Attributes

High fee ratio and low non-performing loan ratio derived from hybrid business model

Earnings stability

Fee ratio

Fee income from trust-related businesses underpins a stable earnings structure largely impervious to the interest rate environment. Our commitment to providing various trust-related services attuned to client needs will ensure sustained and steady growth up ahead.

Source: Based on the results for FY2020 from the disclosed materials of each company

The details are as follows.

3 Japanese mega banks:MUFG、SMFG、Mizuho FG
3 major banks in USA:Citi Group, Bank of America, JP morgan
3 major banks in Europe:BNP Paribas S.A., Deutsche Bank AG, Barclays PLC

Financial soundness

Non-performing loan ratio

Mortgage loans make up the bulk of lending to individuals, while large domestic corporations comprise the lion's share of corporate loans. Our low non-performing loan ratio owes to disciplined credit exposure management.

Sustainability

Leveraging our trust functions to contribute to the sustainable development of society

Sustainability initiatives with strong links to our trust businesses

The functions of trusts have long played a key role in solving various issues in society and sustainability initiatives in the spotlight in more recent times also align closely with our trust businesses. We aim to contribute even further to the sustainable development of society up ahead by fully harnessing the strengths of the Group's business model to solve the issues faced by our clients.

  • Solutions to client issues

    Trust functions can meet the extensive needs of clients

    • Will trusts, Anshin Support Trust
    • Positive Impact Finance
    • Environmentally friendly property
    • Forestry trusts
    • Benefitting clients and the SuMi TRUST Group
      SUMITOMO MITSUI TRUST GROUP
  • Solutions to social issues

    Solving client issues can also help solve social issues

    • Population decline and issues of a super-aged society
    • ESG investment
    • Climate change
    • Natural capital (biodiversity)
    • Development of society

Initiatives on Shareholder Returns

Maintaining stable shareholder returns in line with growth

Ever since the management integration of the SuMi TRUST Group, we have realized raising the dividend amount and paying dividends in a stable manner in line with steady profit growth.

In our new shareholder returns policy that took effect from FY2020, we further clarified our stance on emphasizing dividends in an effort to continually bolster the return of profits to shareholders.

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