Sumitomo Mitsui fiscal year profit grows 4.6 percent on improved lending business

Fri, May 16 04:50 PM

TOKYO (AP) _ Sumitomo Mitsui Financial Group Inc. said Friday its profit rose 4.6 percent in the fiscal year through March, buoyed by improved lending, government bond sales and consolidation of a leasing unit.

Profit at Japan's third-biggest bank grew to 461.54 billion yen (US$4.41 billion; 2.85 billion) from 441.35 billion yen a year earlier. Tokyo-based Sumitomo Mitsui said its revenue rose 19 percent to 4.624 trillion yen (US$44.16 billion; 28.54 billion) from 3.901 trillion yen.

Like many other Japanese banks, Sumitomo Mitsui was hit by credit costs from risky mortgage losses and booked a 93 billion yen (US$888 million; 574 million) loss from write-downs and sales of subprime loan-related assets. The bank's subprime-related exposure has been trimmed to just 5.5 billion yen (US$52.53 million; 33.95 million), the banking group said.

The bank expects 4 percent growth in net profit to 480 billion yen (US$4.58 billion; 2.96 billion) on revenue of 3.900 trillion yen (US$37.25 billion; 24.07 billion) for the current fiscal year through March 31, 2009. Sumitomo Mitsui's earnings are based on Japanese accounting standards.

It did not release figures for the January-March quarter. Share of Sumitomo Mitsui rose 1.39 percent to 876,000 yen (US$8,367; 5,407) on the Tokyo Stock Exchange.

The earnings were issued after the market closed.

RECOMMEND THIS STORY