BW20030528000059  20030528T134514Z UTC


( BW)(SUMITOMO-MITSUI-BNKG)(SBK) Reduction in Capital Reserve and
Earned Surplus Reserve

    Business Editors
    UK REGULATORY NEWS

    TOKYO--(BUSINESS WIRE)--May 28, 2003--

Sumitomo Mitsui Financial Group, Inc. ('SMFG') announced today that 
the Board of Directors has resolved to propose a reduction in capital 
reserve and earned surplus reserve at the ordinary general meeting 
of shareholders to be held on June 27, 2003 as follows: 

1. Purpose: 
     SMFG intends to ensure the flexibility of its financial strategy, such as 
     securing the source for purchasing treasury stocks of its subsidiaries. 

2. Method: 
     Pursuant to Clause 2 of Article 289 of the Commercial Code of Japan, SMFG 
     will transfer 499,504 million yen of 'Capital reserve' and 496 million yen 
     of 'Earned surplus reserve' to 'Other capital surplus' and 'Unappropriated 
     retained earnings,' respectively.


                                                                  (Millions of Yen)          
-----------------------------------------------------------------------------------
                    Before Reduction       Amount of Reduction     After Reduction
-----------------------------------------------------------------------------------
Capital Reserve:        1,747,267               499,504                 1,247,763    
-----------------------------------------------------------------------------------
Earned Surplus
Reserve:                      496                   496                     -
-----------------------------------------------------------------------------------
     Total:             1,747,763               500,000                1,247,763
-----------------------------------------------------------------------------------
(Reference) Capital stock: 1,247,650 million yen


3. Schedule
   (1) Date of resolution at the meeting of the Board of Directors: May 26, 2003.
   (2) Date of resolution at ordinary general meeting of shareholders: June 27, 2003 
       (schedule).

The reduction is scheduled to come into force in early August 2003 following the 
termination of the period for creditors to assert any objections.

   Short Name: Sumitomo Mitsui Bkng
   Category Code: MSC
   Sequence Number: 00005209
   Time of Receipt (offset from UTC): 20030527T163642+0100

    --30--ra/uk*

    CONTACT: Sumitomo Mitsui Bnkg

    KEYWORD: UNITED KINGDOM JAPAN INTERNATIONAL EUROPE ASIA PACIFIC
    INDUSTRY KEYWORD: BANKING
    SOURCE: Sumitomo Mitsui Bnkg

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