Statement re The Bank of Kansai Revision of Earnings Forecast
October 31 2003 - 7:43AM
UK Regulatory
Sumitomo Mitsui Banking
Revision of Earnings Forecast for the Six Months Ended September 30, 2003
by SMFG's Consolidated Subsidiary, The Bank of Kansai, Ltd.
Sumitomo Mitsui Financial Group, Inc. ("SMFG") announced today that its
consolidated subsidiary, The Bank of Kansai, Ltd., revised its earnings forecast
for the six months ended September 30, 2003 initially announced on May 26, 2003.
(see Appendix)
(Appendix)
The Bank of Kansai, Ltd. Announces
Revision of Earnings Forecast for the Six Months Ended September 30, 2003
The Bank of Kansai, Ltd. announced today the revision of its previous
earnings forecast for the six months ended September 30, 2003
initially announced on May 26, 2003.
1. Revision of Earnings Forecast (for the six months ended September 30, 2003)
(Consolidated) (Millions of Yen)
Total Operating Net
Income Profit Income
---------------------------------------------------- --------- -------
Previous Forecast (A) 21,600 2,400 1,200
---------------------------------------------------- --------- -------
Revised Forecast (B) 24,300 2,570 1,400
---------------------------------------------------- --------- -------
Difference (B)-(A) 2,700 170 200
---------------------------------------------------- --------- -------
Percentage Change 12.5% 7.0% 16.6%
---------------------------------------------------- --------- -------
(Ref.) Previous 1st Half 21,673 3,365 1,719
---------------------------------------------------- --------- -------
(Non-consolidated) (Millions of Yen)
Total Operating Net
Income Profit Income
---------------------------------------------------- --------- -------
Previous Forecast (A) 16,400 2,000 1,000
---------------------------------------------------- --------- -------
Revised Forecast (B) 18,900 2,470 1,600
---------------------------------------------------- --------- -------
Difference (B)-(A) 2,500 470 600
---------------------------------------------------- --------- -------
Percentage Change 15.2% 23.5% 60.0%
---------------------------------------------------- --------- -------
(Ref.) Previous 1st Half 16,096 2,599 1,269
---------------------------------------------------- --------- -------
2. Reason for Revision
Non-consolidated
Total Income is expected to increase by 2,804 million yen (+17.4%) from the six
months ended September 30, 2002 and 2,500 million yen (+15.2%) from the previous
forecast mainly due to a steady increase in loans of 93.6 billion yen (+10.0%
from September 30, 2002) and gains on sales of bonds and equity securities.
Core banking profit is expected to hit a fourth consecutive term record of 6,160
million yen in the six months ended September 30, 2003, an increase of 964
million yen (+18.5%) from the six months ended September 30, 2002 and 660
million yen (+12.0%) from the previous estimate, thanks to a steady increase in
loans to consumers (centered on mortgage loans) and small companies.
Due to the reasons above, Operating profit and Net income on a non-consolidated
basis will increase from the previous forecast.
Consolidated
The consolidated estimates are also revised in line with the above revision of
the non-consolidated estimates.
Both the non-consolidated and consolidated capital ratios are expected to be
approximately 8.3%.
The earnings forecast for the fiscal year ending March 31, 2004 will be
announced at the time of announcement of the financial results for the six
months ended September 30, 2003 scheduled in late-November 2003.
(References)
1. Earnings Forecast for the six months ended September 30, 2003
(Non-consolidated)
(Billions of yen)
Previous Revised
Estimate Estimate Change
(1) (2) (2)-(1)
--------------------------------------------------- --------- --------
Core Banking Profit (*) 5.5 6.2 0.7
--------------------------------------------------- --------- --------
Total Credit Cost (2.5) (4.0) (1.5)
--------------------------------------------------- --------- --------
Operating profit 2.0 2.5 0.5
--------------------------------------------------- --------- --------
Net Income 1.0 1.6 0.6
--------------------------------------------------- --------- --------
(*) Core Banking Profit= Banking Profit - Transfer to General Reserve for
Possible Loan Losses
- Gains (Losses) on Bonds
2. Major Indicators
(Billions of Yen)
1999/9 2000/9 2001/9 2002/9 2003/9
Actual Actual Actual Actual Estimate
--------------------------------------------------------------- -------- ------ -------- --------
Core Banking Profit 3.7 4.7 5.2 5.2 6.2
--------------------------------------------------------------- -------- ------ -------- --------
Banking Profit 2.9 6.2 5.6 5.8 8.1
--------------------------------------------------------------- -------- ------ -------- --------
Operating Profit (loss) 1.3 4.2 2.3 2.6 2.5
--------------------------------------------------------------- -------- ------ -------- --------
Net Income (loss) 0.7 2.3 1.2 1.3 1.6
--------------------------------------------------------------- -------- ------ -------- --------
Core ROA 0.64% 0.82% 0.88% 0.83% 0.92%
--------------------------------------------------------------- -------- ------ -------- --------
Core ROE 19.8% 23.9% 24.2% 24.8% 27.8%
--------------------------------------------------------------- -------- ------ -------- --------
Core OHR 70.1% 63.8% 61.6% 61.3% 57.6%
--------------------------------------------------------------- -------- ------ -------- --------
Yen Deposits 983.8 1,017.0 990.3 1,097.7 1,207.6
--------------------------------------------------------------- -------- ------ -------- --------
Of which, Individuals' Deposits 672.8 658.3 677.1 714.1 757.2
--------------------------------------------------------------- -------- ------ -------- --------
Yen Loans 880.4 846.3 886.3 929.5 1,025.2
--------------------------------------------------------------- -------- ------ -------- --------
Of which, Mortgage Loans 186.5 213.9 237.6 274.2 322.5
--------------------------------------------------------------- -------- ------ -------- --------
Year-on-year Change
Yen Deposits 10.6% 3.3% (2.6%) 10.8% 10.0%
--------------------------------------------------------------- ------ ------ ----- -----
Of which, Individuals' Deposits 1.2% (2.1%) 2.8% 5.4% 6.0%
--------------------------------------------------------------- ------ ------ ----- -----
Yen Loans 1.0% (3.8%) 4.7% 4.8% 10.2%
--------------------------------------------------------------- ------ ------ ----- -----
Of which, Mortgage Loans 0.0% 14.6% 11.1% 15.3% 17.6%
--------------------------------------------------------------- ------ ------ ----- -----
3. Unrealized Gains(Losses) on Other Securities
(Millions of yen)
September 30,
March 31, 2003 2003
------------------------------------------------- -------------------
Unrealized Gains(Losses) on Other
Securities (807) (617)
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