Sumitomo Mitsui Trust Group (8309) investor relations material

Executive summary

• Net income reached a record-high ¥317.6bn for FY2025, up 23.3% YoY, driven by strong fee and commission growth, net gains on stocks, and extraordinary profit from sales of subsidiaries and affiliates.

• ROE improved to 11.45%, and dividend per share increased by ¥30 to ¥185.

• Net business profit before credit costs declined by ¥14.5bn YoY due to a ¥70.0bn bond portfolio loss, but reached a record-high on an adjusted basis.

• Comprehensive income surged to ¥638.2bn, up 452.5% YoY.

Financial highlights

• Gross business profit rose by ¥26.0bn YoY to ¥960.2bn, with total assets up ¥3,927.1bn to ¥82,174.3bn and net assets up ¥463.6bn to ¥3,591.0bn.

• Net fees and commissions and related profit increased by ¥52.9bn YoY, reflecting robust asset management, administration, and real estate businesses.

• Net gains on stocks surged by ¥57.4bn YoY to ¥138.8bn, aided by strategic shareholdings reduction.

• Loans and bills discounted grew by ¥1,070.3bn to ¥33,277.3bn; deposits increased by ¥2,270.1bn to ¥39,993.1bn.

• Dividend per share for FY2025 was ¥185, with a payout ratio of 40.9%.

Outlook and guidance

• FY2026 forecast: net income of ¥380.0bn (+¥62.4bn YoY), net business profit before credit costs of ¥420.0bn (+¥72.5bn YoY), and annual dividend of ¥190 per share (¥47.50 post-stock split).

• Policy shift to a total payout ratio of 50% or above, with dividends based on adjusted net income excluding gains from strategic shareholdings.

• Strategic shareholdings reduction target raised by ¥40bn, aiming for market value vs. total net assets ratio below 20% by March 2029.