Sumitomo Mitsui Trust Group (8309) Q2 2027 earnings summary

Executive summary

• 1HFY26 net business profit before credit costs was ¥258.288bn, up ¥76.3bn YoY; parent-attributable net income was ¥250.148bn, up 46.0% and a record 1H result.

• Ordinary profit rose 85.4% YoY to ¥364.262bn; performance benefited from higher interest and fee income and net gains on stocks.

• FY26 forecasts rose to ¥440.0bn for net business profit before credit costs and ¥420.0bn for net income; the dividend forecast increased to ¥51 per share and an additional buyback of up to ¥50.0bn was announced.

Financial highlights

• Substantial gross business profit rose ¥116.9bn YoY to ¥595.2bn; substantial G&A expenses increased ¥40.5bn to ¥336.9bn. Consolidated gross business profit was ¥538.933bn, versus ¥430.647bn a year earlier.

• Net gains on stocks increased to ¥122.334bn from ¥39.862bn; net gains on bonds were ¥1.047bn, versus ¥13.635bn. Total credit costs were ¥8.8bn, with reserve reversals reflecting improved credit quality.

• Income before taxes was ¥367.770bn; net income was ¥251.307bn, while parent-attributable net income was ¥250.148bn.

• Net fees and commissions and related profit rose ¥49.2bn YoY to ¥303.3bn, primarily on asset management and administration growth.

• Comprehensive income fell 32.8% YoY to ¥171.346bn, reflecting a ¥79.961bn loss on available-for-sale securities versus an ¥80.641bn gain a year earlier.

Outlook and guidance

• FY26 net business profit before credit costs forecast rose ¥20.0bn to ¥440.0bn and net income forecast rose ¥40.0bn to ¥420.0bn; forecast EPS is ¥152.25.

• FY26 forecasts include ¥210.0bn net gains on stocks, ¥20.0bn total credit costs and ¥680.0bn substantial G&A expenses.

• 2HFY26 assumptions include Nikkei 225 at ¥65,000, USD/JPY at ¥155 and Japan interest rate at 1.25%; June and September rate hikes are estimated to add ¥35.0bn YoY to FY26 net business profit.