Sumitomo Mitsui Trust Group (8309) Q2 2025 earnings summary

Executive summary

• Net business profit before credit costs reached ¥169.5bn, up ¥3.2bn year-over-year, with client-related businesses offsetting declines in global markets.

• Net income attributable to owners of the parent surged 201.4% year-over-year to ¥132.8bn, mainly due to the absence of prior year special factors and increased net gains on stocks.

• Ordinary income rose 12.0% year-over-year to ¥1,334.5bn for the six months ended September 30, 2024.

• EPS increased to ¥184.69, reflecting a 2-for-1 stock split effective January 1, 2024.

• Progress toward FY24 targets: 50% for net business profit and 55% for net income, aiming to achieve FY25 medium-term plan goals a year early.

Financial highlights

• Substantial gross business profit rose to ¥450.8bn (+¥22.4bn YoY); substantial G&A expenses increased to ¥281.2bn (+¥19.1bn YoY).

• Ordinary profit jumped 254.8% year-over-year to ¥183.0bn.

• Net gains on stocks improved by ¥135.4bn YoY, driven by strategic shareholdings reduction.

• Total assets reached ¥76,949.0bn, up from ¥75,876.9bn as of March 31, 2024.

• Net assets increased to ¥3,208.4bn from ¥3,137.7bn at the previous fiscal year-end.

Outlook and guidance

• FY24 net income forecast at ¥240.0bn, targeting FY25 medium-term plan goals ahead of schedule.

• Projected net income per share for the fiscal year ending March 31, 2025, is ¥333.75.

• Dividend per share forecast at ¥145, up ¥35 YoY, with a payout ratio of 43.5% and a ¥10 commemorative dividend.

• Continued focus on earnings growth from asset management, cost control, and capital policy.