Sumitomo Mitsui Financial (SMFG) - 2024 Q4 - Annual Report

Loan and Asset Management - The total reserve for possible loan losses related to Russia was recorded at ¥85,553 million[11]. - The total amount of loans classified as bankrupt and quasi-bankrupt increased from ¥92,941 million in 2023 to ¥160,186 million in 2024, representing a growth of 72.5%[19]. - The total amount of normal loans rose from ¥115,139,286 million in 2023 to ¥125,031,630 million in 2024, an increase of approximately 8%[19]. - The total impairment loss on idle assets was recorded at ¥59,842 million for the fiscal year ended March 31, 2023[27]. - The company reported trading liabilities of ¥4,921,315 million, reflecting a stable financial position[77]. - The company conducts regular loan reviews to manage non-performing loans and potential non-performing loans, enhancing loan security and supporting business recoveries[121]. - Total monetary claims increased from ¥38,504,642 million as of March 31, 2023, to ¥44,061,034 million as of March 31, 2024, representing a growth of approximately 14.3%[166]. - Loans and bills discounted rose from ¥24,562,475 million to ¥28,370,239 million, marking an increase of approximately 11.0%[166]. Financial Performance and Valuation - The net unrealized gains on other securities improved significantly from a loss of ¥252,078 million in 2023 to a gain of ¥1,024,910 million in 2024[35]. - The total other comprehensive income surged from ¥215,388 million in 2023 to ¥1,661,035 million in 2024, showcasing a substantial improvement[35]. - The company reported a net unrealized gain of ¥3,393,095 million for the fiscal year ended March 31, 2024, compared to a net unrealized gain of ¥1,915,148 million in 2023[44]. - The company reported valuation losses of ¥408 million for the fiscal year ended March 31, 2023, and ¥42,081 million for the fiscal year ended March 31, 2024, highlighting a significant increase in impairment[174]. - The total sales amount for other securities sold in the fiscal year ended March 31, 2024, was ¥14,328,322 million, with gains on sales amounting to ¥358,040 million[170]. Securities and Derivatives - The total amount of securities pledged rose from ¥7,694,727 million in 2023 to ¥9,174,753 million in 2024, reflecting an increase of 19.3%[18]. - Total valuation losses for interest rate futures amounted to ¥966,966 million[38]. - The total contract amount for currency derivatives was ¥1,029,554 million, with valuation gains of ¥204,179 million[39]. - The total amount of interest rate swaps was ¥824,325,850 million, with net valuation losses of ¥304,791 million[38]. - The total derivative transactions resulted in a loss of ¥1,739,642 million, indicating exposure to market risks[77]. - The total valuation loss for all derivatives was ¥1,384,794 million[158]. - The total derivative transactions resulted in a loss of ¥1,661,170 million, primarily due to interest rate derivatives[184]. Risk Management - The company has established a comprehensive risk management framework to monitor credit, market, and liquidity risks[89][90]. - The liquidity risk management framework includes contingency plans and quantitative benchmarks to ensure funding stability[97]. - The Corporate Risk Management Department and Risk Management Information Department manage market and liquidity risks in an integrated manner, reporting regularly to the Management Committee and the Audit Committee[122]. - The Company has established guidelines for managing marketable credit risk, which includes credit risk, market risk, and liquidity risk associated with financial products[121]. - The Internal Audit Department performs periodic audits to ensure the risk management framework is functioning properly[122]. Financial Position and Capital - Total assets amounted to ¥41,519,046 million, with a significant increase in trading assets to ¥6,486,298 million[77]. - Total assets grew from ¥55,135,341 million to ¥59,430,145 million, indicating an increase of around 7.0%[166]. - The company has a total of ¥164,841,513 million in deposits, with a slight increase of ¥2,155 million from the previous period[103]. - The total consolidated balance sheet amount as of March 31, 2024, is ¥35,441,147 million, an increase from ¥31,872,239 million as of March 31, 2023[44]. - The number of shares issued at the end of the fiscal year was 1,337,529,084, after an increase of 477,890 shares[79]. - The company paid dividends totaling ¥301,626 million for the fiscal year, with dividends per share at ¥220[78]. Accounting and Reporting - The company is currently assessing the effects of new accounting standards related to current income taxes and comprehensive income, which may impact future financial reporting[9]. - The company has applied deferred hedge accounting for derivative transactions, following the "Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR"[99]. - The fair values of derivative transactions are calculated based on the present value of estimated future cash flows, with significant unobservable inputs affecting the valuation[146]. - The fair value of monetary claims bought is ¥5,603,840 million, with a difference of ¥72,530 million from the consolidated balance sheet amount of ¥5,531,310 million[103].