Sumitomo Mitsui Trust Group (8309) Q1 2026 earnings summary

Executive summary

• Net income for 1QFY25 reached ¥90.8bn, up 36.2% year-over-year, achieving 32% of the full-year forecast.

• EPS increased to ¥128.10 from ¥92.71 year-over-year.

• Ordinary profit decreased 9.1% year-over-year to ¥83.2bn, while comprehensive income surged 88.1% to ¥118.7bn.

• Net business profit before credit costs was ¥74.6bn, representing 20% of the annual target, despite weak global markets.

• Effective interest-related earnings rose by ¥12.0bn year-over-year, driven by domestic interest rate hikes.

Financial highlights

• Substantial gross business profit was ¥199.8bn, down ¥8.4bn year-over-year.

• Net fees and commissions and related profit increased by ¥2.3bn year-over-year to ¥123.2bn.

• Net gains on stocks reached ¥20.4bn, 29% of the annual forecast, with ¥27.5bn from strategic shareholdings sales.

• Gains on sales of stocks of subsidiaries and affiliates contributed ¥41.1bn in extraordinary income.

• Substantial G&A expenses increased by ¥8.3bn, mainly due to higher IT system costs.

Outlook and guidance

• FY2025 net income forecast is ¥280.0bn, up 8.7% from FY24 actual, with projected EPS of ¥396.78.

• Net business profit before credit costs is projected at ¥370.0bn for FY25.

• Dividend per share is expected to increase by ¥5 to ¥160, with an interim dividend of ¥80.

• No revision to previously announced earnings guidance.