# Sumitomo Mitsui Financial Group (8316.JP)

Canonical: https://gigainvestors.com/s/8316.JP

Analysis as of: 2026-10-15T06:39:20.246Z. Financial observations: FY2016–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 3,222.00 per share; close as of 2026-10-15.

Estimated value: low JPY 763.15 per share, central JPY 904.92 per share, high JPY 1,111.39 per share. Buy at or below the central value JPY 904.92 per share. Valuation as of 2026-10-15T06:39:20.246Z; scenarios are not confidence intervals.

Expected annual return: 6.1% at the stated quote. About 6.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.20×

Chart: Net income; fiscal year observations.

- FY2017: JPY 707B

- FY2018: JPY 734B

- FY2019: JPY 727B

- FY2020: JPY 704B

- FY2021: JPY 513B

- FY2022: JPY 707B

- FY2023: JPY 806B

- FY2024: JPY 963B

- FY2025: JPY 1.18T

- FY2026: JPY 1.58T

### moat: fail

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- median return on common equity below threshold

- Bank / P&C ROTE, median of available years: 7.2%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 6.3%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2017: 8.0%

- FY2018: 7.7%

- FY2019: 7.3%

- FY2020: 7.1%

- FY2021: 4.6%

- FY2022: 6.3%

- FY2023: 6.8%

- FY2024: 7.0%

- FY2025: 8.6%

- FY2026: 10.8%

### economics: fail

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- book value per share plus dividends compounded below 7% annually

- Book value per share + reinvested dividends, annualized return: -1.7%

- Book return interval: 10 years

- Starting book value per share: JPY 6K

- Ending book value per share: JPY 4K

Chart: Annual book + dividend return; fiscal year observations.

- FY2017: 11.7%

- FY2018: 7.7%

- FY2019: 8.6%

- FY2020: 3.9%

- FY2021: 14.4%

- FY2022: 3.4%

- FY2023: -63.9%

- FY2024: 22.3%

- FY2025: 5.2%

- FY2026: 12.7%

### management: fail

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- ordinary share count growth exceeds 2% annually in both the full and five-year windows

- book per share gain below retained common earnings per share

- Diluted shares, 10-year annual growth: 10.9%

- Diluted shares, 5-year annual growth: 22.9%

- Share growth excluding flagged crisis recapitalisations: 10.9%

- Five-year share growth excluding flagged crisis recapitalisations: 22.9%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: -0.90×

- Book value created per share: JPY -2K

- Earnings retained per share after dividends and buybacks: JPY 2K

Chart: Shares (first year = 100); fiscal year observations.

- FY2016: 100

- FY2017: 100

- FY2018: 103

- FY2019: 102

- FY2020: 101

- FY2021: 100

- FY2022: 100

- FY2023: 299

- FY2024: 292

- FY2025: 286

- FY2026: 281

### accounting: pass

- Financial accounting warning count: 0

- Loans, annualized growth: 4.6%

- Deposits, annualized growth: 5.3%

- Known restatement years: 0

- Years loan growth exceeded twice deposit growth: 1

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

The price assumes profits grow 8.5% a year forever · net income +34.4%

Story as of 2026-10-16T09:59:56.762Z; price observation 2026-10-15.

The price assumes profits grow 8.5% a year forever

### Net income · FY2026

net income +34.4%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YERK.pdf; observed 2026-06-19.

- FY2017: JPY 707B 

- FY2018: JPY 734B 

- FY2019: JPY 727B 

- FY2020: JPY 704B 

- FY2021: JPY 513B 

- FY2022: JPY 707B 

- FY2023: JPY 806B 

- FY2024: JPY 963B 

- FY2025: JPY 1.18T 

- FY2026: JPY 1.58T 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diversified banking; annual sales are JPY 5.8 trillion.

- Source: https://query2.finance.yahoo.com/ws/fundamentals-timeseries/v1/finance/timeseries/8316.T?type=annualTotalRevenue%2CannualCostOfRevenue%2CannualGrossProfit%2CannualOperatingIncome%2CannualOperatingExpense%2CannualNetIncome%2CannualPretaxIncome%2CannualTaxProvision%2CannualDepreciationAndAmortization%2CannualStockBasedCompensation%2CannualOperatingCashFlow%2CannualCapitalExpenditure%2CannualCashDividendsPaid%2CannualRepurchaseOfCapitalStock%2CannualIssuanceOfCapitalStock%2CannualNetBusinessPurchaseAndSale%2CannualReceivables%2CannualInventory%2CannualAccountsPayable%2CannualCashCashEquivalentsAndShortTermInvestments%2CannualTotalDebt%2CannualCurrentDebt%2CannualStockholdersEquity%2CannualGoodwill%2CannualOtherIntangibleAssets%2CannualNetPPE%2CannualTotalAssets%2CannualTotalLiabilitiesNetMinorityInterest%2CannualCurrentAssets%2CannualCurrentLiabilities%2CannualDilutedAverageShares%2CannualDilutedEPS%2CannualRetainedEarnings&period1=1262304000&period2=1790802248 (filed 2026-06-19); FY2026: revenue 5791568000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMFG.US: Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides banking, leasing, securities, consumer finance, and other services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates through Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit segments. The Wholesale Business Unit segment offers bilateral loans, syndicated loans, commitment lines, structured finance, project finance, and nonrecourse loans; deposits and investment trusts; risk hedging services, including forward exchange contracts and derivatives; stand-by credit, and performance bond and credit guarantee services; remittance, cash management, trade finance, and supply chain finance services; merger and acquisition, and other advisory services; digital services; and equipment, operating and leveraged leasing services. The Retail Business Unit segment provides wealth management services, such as time deposits and foreign currency deposits, investment trusts, equities, bonds, insurance products, and trust services; credit card, installment, and transaction services; and consumer finance and housing loans. The Global Business Unit segment offers loans, deposits, clearing, trade finance, project finance, loan syndication, derivatives, and global cash management services; equity and fixed income sales and trading, and underwriting services; and construction machinery, transportation equipment, industrial machinery, medical equipment, and other leasing services. The Global Markets Business Unit segment provides asset liability management and portfolio management, foreign currency funding, and sales and trading services. The company offers system development, data processing, management consulting, economic research, and asset management services. Sumitomo Mitsui Financial Group, Inc. was incorporated in 2002 and is headquartered in Tokyo, Japan.

### Why customers stay

It earns 7.2% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); 10-year return on tangible equity observations [[2017,0.08042302397463687],[2018,0.07709996586833998],[2019,0.0726747133989193],[2020,0.07062566580018785],[2021,0.04625069672049829],[2022,0.06309544495159472],[2023,0.06839244045763004],[2024,0.07037327331903134],[2025,0.08607235041298063],[2026,0.10816779153749916]]; median 0.07165018959955358. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back JPY 250.6 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Dividend observations: [[2017,205078000000],[2018,218569000000],[2019,245594000000],[2020,255771000000],[2021,267119000000],[2022,274058000000],[2023,301600000000],[2024,348010000000],[2025,412120000000],[2026,540071000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YERK.pdf (filed 2026-06-19); FY2026: cash repurchases 250624000000 JPY.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SMFG.US SharesStats.PercentInsiders = 0.005 percentage points; cache date 2026-10-16.

### What the price says

The price assumes profits grow 8.5% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-19); Price 3222; FX 1; original perpetual distributable cash 48.71245721400685; discount 0.1; growth 0.0848812981955286. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 701.00 per share

- 2016-12: JPY 743.33 per share

- 2017-01: JPY 741.83 per share

- 2017-02: JPY 729.50 per share

- 2017-03: JPY 674.17 per share

- 2017-04: JPY 687.33 per share

- 2017-05: JPY 662.33 per share

- 2017-06: JPY 729.83 per share

- 2017-07: JPY 699.17 per share

- 2017-08: JPY 685.67 per share

- 2017-09: JPY 720.00 per share

- 2017-10: JPY 752.83 per share

- 2017-11: JPY 757.83 per share

- 2017-12: JPY 811.33 per share

- 2018-01: JPY 813.00 per share

- 2018-02: JPY 781.00 per share

- 2018-03: JPY 743.00 per share

- 2018-04: JPY 758.33 per share

- 2018-05: JPY 750.50 per share

- 2018-06: JPY 717.67 per share

- 2018-07: JPY 740.83 per share

- 2018-08: JPY 730.17 per share

- 2018-09: JPY 764.33 per share

- 2018-10: JPY 735.67 per share

- 2018-11: JPY 697.17 per share

- 2018-12: JPY 607.50 per share

- 2019-01: JPY 674.17 per share

- 2019-02: JPY 657.00 per share

- 2019-03: JPY 646.00 per share

- 2019-04: JPY 670.17 per share

- 2019-05: JPY 630.50 per share

- 2019-06: JPY 634.33 per share

- 2019-07: JPY 634.50 per share

- 2019-08: JPY 580.67 per share

- 2019-09: JPY 615.83 per share

- 2019-10: JPY 646.67 per share

- 2019-11: JPY 664.83 per share

- 2019-12: JPY 673.00 per share

- 2020-01: JPY 647.33 per share

- 2020-02: JPY 580.67 per share

- 2020-03: JPY 437.17 per share

- 2020-04: JPY 474.00 per share

- 2020-05: JPY 519.83 per share

- 2020-06: JPY 505.33 per share

- 2020-07: JPY 466.67 per share

- 2020-08: JPY 519.67 per share

- 2020-09: JPY 486.25 per share

- 2020-10: JPY 480.17 per share

- 2020-11: JPY 505.33 per share

- 2020-12: JPY 531.33 per share

- 2021-01: JPY 540.83 per share

- 2021-02: JPY 623.67 per share

- 2021-03: JPY 667.83 per share

- 2021-04: JPY 633.67 per share

- 2021-05: JPY 658.50 per share

- 2021-06: JPY 638.33 per share

- 2021-07: JPY 615.83 per share

- 2021-08: JPY 633.50 per share

- 2021-09: JPY 657.33 per share

- 2021-10: JPY 620.17 per share

- 2021-11: JPY 617.17 per share

- 2021-12: JPY 657.17 per share

- 2022-01: JPY 685.50 per share

- 2022-02: JPY 686.83 per share

- 2022-03: JPY 651.17 per share

- 2022-04: JPY 652.50 per share

- 2022-05: JPY 653.67 per share

- 2022-06: JPY 672.00 per share

- 2022-07: JPY 684.50 per share

- 2022-08: JPY 699.00 per share

- 2022-09: JPY 670.67 per share

- 2022-10: JPY 695.50 per share

- 2022-11: JPY 778.83 per share

- 2022-12: JPY 882.67 per share

- 2023-01: JPY 942.00 per share

- 2023-02: JPY 995.33 per share

- 2023-03: JPY 883.00 per share

- 2023-04: JPY 924.83 per share

- 2023-05: JPY 946.33 per share

- 2023-06: JPY 1,026.50 per share

- 2023-07: JPY 1,115.67 per share

- 2023-08: JPY 1,113.50 per share

- 2023-09: JPY 1,224.50 per share

- 2023-10: JPY 1,203.33 per share

- 2023-11: JPY 1,209.67 per share

- 2023-12: JPY 1,146.67 per share

- 2024-01: JPY 1,283.33 per share

- 2024-02: JPY 1,390.67 per share

- 2024-03: JPY 1,482.33 per share

- 2024-04: JPY 1,496.67 per share

- 2024-05: JPY 1,715.00 per share

- 2024-06: JPY 1,787.50 per share

- 2024-07: JPY 1,819.17 per share

- 2024-08: JPY 1,591.67 per share

- 2024-09: JPY 1,522.50 per share

- 2024-10: JPY 1,636.50 per share

- 2024-11: JPY 1,843.00 per share

- 2024-12: JPY 1,882.00 per share

- 2025-01: JPY 1,934.00 per share

- 2025-02: JPY 1,896.00 per share

- 2025-03: JPY 1,897.50 per share

- 2025-04: JPY 1,700.00 per share

- 2025-05: JPY 1,850.00 per share

- 2025-06: JPY 1,817.00 per share

- 2025-07: JPY 1,927.50 per share

- 2025-08: JPY 2,024.00 per share

- 2025-09: JPY 2,088.00 per share

- 2025-10: JPY 2,081.50 per share

- 2025-11: JPY 2,349.00 per share

- 2025-12: JPY 2,520.50 per share

- 2026-01: JPY 2,736.00 per share

- 2026-02: JPY 2,998.50 per share

- 2026-03: JPY 2,503.00 per share

- 2026-04: JPY 2,756.00 per share

- 2026-05: JPY 2,909.50 per share

- 2026-06: JPY 3,173.00 per share

- 2026-07: JPY 3,407.00 per share

- 2026-08: JPY 3,487.50 per share

- 2026-09: JPY 3,471.00 per share

- 2026-10: JPY 3,285.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 3,146.63 per share, central JPY 3,799.88 per share, high JPY 4,795.40 per share

- FY2021: low JPY 3,357.95 per share, central JPY 4,029.00 per share, high JPY 5,035.26 per share

- FY2022: low JPY 3,241.31 per share, central JPY 3,866.00 per share, high JPY 4,788.96 per share

- FY2023: low JPY 1,138.74 per share, central JPY 1,351.68 per share, high JPY 1,662.59 per share

- FY2024: low JPY 1,349.37 per share, central JPY 1,595.16 per share, high JPY 1,950.44 per share

- FY2025: low JPY 1,398.22 per share, central JPY 1,657.96 per share, high JPY 2,036.23 per share

- FY2026: low JPY 1,520.37 per share, central JPY 1,802.81 per share, high JPY 2,214.12 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:20.246Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YERK.pdf); period 2026-03-31, filed 2026-06-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.