SMFG second-quarter profit falls 10%, raises annual earnings forecast

Sumitomo Mitsui Financial Group (SMFG) reported a decline in net profit for the second quarter, falling by 10% compared to the previous year. However, the banking group raised its annual earnings forecast. In the July-to-September period, SMFG generated a net profit of 501.8 billion yen ($3.14 billion), a drop from 556.6 billion yen a year earlier. This decline was attributed to factors such as local corporate lending demand remaining robust, and higher domestic interest rates, which boosted lending margins.

To offset the profit decline, SMFG increased its annual net profit forecast from 1.7 trillion yen to 1.9 trillion yen. Additionally, the banking group expanded its share buyback programme by 220 billion yen, with the total shares to be repurchased amounting to 400 billion yen for the financial year ending in March 2027. In the second quarter, SMFG's net income fell from the previous year, when it recorded a gain of 94 billion yen from the sale of its stake in India's Kotak Mahindra Bank.