As Japanese companies expand globally and carry out mergers and acquisitions and injecting capitals, Sumitomo Mitsui Financial Group (SMFG) is seeing gross profit to grow across all segments.
And higher interest rates in Japan gives a tailwind to SMFG making it confident with its guideline of 1.2 trillion yen in net profit for next year that surpassed its previous target of 1.16 trillion yen.
This year, in Q2, SMFG made a substantial profit from selling equity holdings of 196 billion yen which positively impacted their financial results. Its online banking app Olive is also performing well even though it's not yet profitable, but the trend is positive and predicted to be profitable soon ahead of schedule.
Toru Nakashima, the CEO of Sumitomo said, "Domestic business opportunities are really increasing."
Now SMFG is focus on finding new business opportunities to maintain profit growth as sales of cross-shareholdings decrease. SMFG is expanding its alliance with Jefferies Financial Group in the US, particularly in equity trading.
They also considering setting up a back-office and IT center in India for better IT development, talent acquisition, and back-office services.
You can make more informed investment decision by visiting GuruFocus now and deep dive into SMFG's performance with charts, breakdowns, 30-year financial data, and more!
This article first appeared on GuruFocus.免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。