The most recent quarterly earnings for the system integrators highlighted the sustained increase in spending by Japanese financial institutions over recent quarters, as they seek to improve products and services amid a shift in interest rates and the introduction of tax-exempt investment accounts, and as interest in digital currencies grows. Analyst Lindsay Whipp reviews some of the DX spending undertaken by Japan’s banking industry and highlights beneficiaries'.
Opportunity Within Europe and Japan Our bullish outlook on global equities (MSCI ACWI) remains intact. We view this pullback as a buying opportunity and we are watching for $116-$117 support to hold on ACWI-US; this is an important resistance-turned-support level dating back to July 2024. Europe and Japan are on the cusp of major breakouts above critical resistance levels of 5000-5120 on the EURO STOXX 50 and 2740-2820 on the TOPIX. Europe has been consolidating for nine months, while Japan has...
When the BoJ raised rates in March, it had been 17 years since it had last done so, though the world was very different then. While the July rate hike was unlikely to move the economic needle, the question now is what else might follow the subsequent financial market maelstrom. Pelham Smithers discusses the outlook for Japan’s macro environment, what new fiscal policies the new PM might introduce, how the BoJ might react and the all-important trend in corporate earnings. This then leads us to...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
SUMI MITSUI FIN GRP (JP), a company active in the Money Center Banks industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 3 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date February 19, 2021, the closing price was JPY 3,723.00 and...
Sumitomo Mitsui Financial Group on May 17 held a briefing for analysts and investors to discuss its results for the year ended March. It was Jun Ohta’s first appearance as chief executive of the group since he succeeded chairman Takeshi Kunibe as CEO in April. We came away with a positive impression based on Ohta’s message that SMFG will continue to press its cost-efficiency advantage against its two megabank rivals and has ample room to reduce expenses further. For example, we see potential...
Sumitomo Mitsui Financial Group on May 17 held a briefing for analysts and investors to discuss its results for the year ended March. It was Jun Ohta’s first appearance as chief executive of the group since he succeeded chairman Takeshi Kunibe as CEO in April. We came away with a positive impression based on Ohta’s message that SMFG will continue to press its cost-efficiency advantage against its two megabank rivals and has ample room to reduce expenses further. For example, we see potential...
Sumitomo Mitsui Financial Group on May 17 held a briefing for analysts and investors to discuss its results for the year ended March. It was Jun Ohta’s first appearance as chief executive of the group since he succeeded chairman Takeshi Kunibe as CEO in April. We came away with a positive impression based on Ohta’s message that SMFG will continue to press its cost-efficiency advantage against its two megabank rivals and has ample room to reduce expenses further. For example, we see potential...
Most of the key factors driving Sumitomo Mitsui Financial Group's bottom line deteriorated in the October-December quarter, with net interest income dropping 11% year on year (perhaps influenced by ETF trading or other non-customer elements), fee income dropping 11% as wealth-management businesses were affected by the recent deterioration in market conditions, and credit costs normalizing to an annualized 24 basis points of loans after net write-backs had benefited the bottom line in the previou...
Most of the key factors driving Sumitomo Mitsui Financial Group's bottom line deteriorated in the October-December quarter, with net interest income dropping 11% year on year (perhaps influenced by ETF trading or other non-customer elements), fee income dropping 11% as wealth-management businesses were affected by the recent deterioration in market conditions, and credit costs normalizing to an annualized 24 basis points of loans after net write-backs had benefited the bottom line in the previou...
Most of the key factors driving Sumitomo Mitsui Financial Group's bottom line deteriorated in the October-December quarter, with net interest income dropping 11% year on year (perhaps influenced by ETF trading or other non-customer elements), fee income dropping 11% as wealth-management businesses were affected by the recent deterioration in market conditions, and credit costs normalizing to an annualized 24 basis points of loans after net write-backs had benefited the bottom line in the previou...
Most of the key factors driving Sumitomo Mitsui Financial Group's bottom line deteriorated in the October-December quarter, with net interest income dropping 11% year on year (perhaps influenced by ETF trading or other non-customer elements), fee income dropping 11% as wealth-management businesses were affected by the recent deterioration in market conditions, and credit costs normalizing to an annualized 24 basis points of loans after net write-backs had benefited the bottom line in the previou...
Sumitomo Mitsui Financial Group reported the strongest results for the July-September quarter of Japan's six major banking groups, being the only one to show an increase in net interest income year on year, notwithstanding the pressure on domestic lending rates from the Bank of Japan’s negative-interest-rate policy. Besides higher lending income and net fees, SMFG’s expense ratio also improved sequentially from 59.6% to 57.2%, the lowest among Japan’s major banks, driving a 9% year-on-yea...
Sumitomo Mitsui Financial Group reported the strongest results for the July-September quarter of Japan's six major banking groups, being the only one to show an increase in net interest income year on year, notwithstanding the pressure on domestic lending rates from the Bank of Japan’s negative-interest-rate policy. Besides higher lending income and net fees, SMFG’s expense ratio also improved sequentially from 59.6% to 57.2%, the lowest among Japan’s major banks, driving a 9% year-on-year...
Sumitomo Mitsui Financial Group, or SMFG, is in advanced talks to sell its 51% stake in SMM Auto Finance (49% owned by Mazda Motors) to Toyota Finance Corp for an undisclosed price. We maintain our no-moat rating and our fair value estimate for SMFG remains JPY 5,960, which is 37% above the current share price. Similar to the deal SMFG reached last year to sell controlling stakes in two regional banks to Kansai Mirai Financial Group, this sale would deconsolidate a noncore asset acquired in pas...
Sumitomo Mitsui Financial Group, or SMFG, is in advanced talks to sell its 51% stake in SMM Auto Finance (49% owned by Mazda Motors) to Toyota Finance Corp for an undisclosed price. We maintain our no-moat rating and our fair value estimate for SMFG remains JPY 5,960, which is 37% above the current share price. Similar to the deal SMFG reached last year to sell controlling stakes in two regional banks to Kansai Mirai Financial Group, this sale would deconsolidate a noncore asset acquired in past...
Sumitomo Mitsui Financial Group, or SMFG, with a 7.2% share of domestic loans and 8.2% of deposits as of March 2018, is one of Japan’s big three banking groups, along with Mitsubishi UFJ Financial Group, or MUFG, and Mizuho. In Japan, the environment for banks has been tough for years and we expect it to remain so. The long-running deflationary environment in the country has led to persistently low demand for loans, with the loan/deposit ratio having declined from 74% in 2000 to around 55% at ...
We are transferring coverage of Japan's six largest banking groups, all of which we rate as having no moat and a stable moat trend. This includes the three so-called "megabanks" that together account for 25% of banking-system loans and 29% of deposits: Mitsubishi UFJ Financial Group, or MUFG (8306 JP), Sumitomo Mitsui Financial Group, or SMFG (8316 JP), and Mizuho Financial Group (8411 JP). It also includes three second-tier banks: Sumitomo Mitsui Trust (8309 JP), Resona (8308 JP), and Japan Po...
Sumitomo Mitsui Financial Group, or SMFG, with a 7.2% share of domestic loans and 8.2% of deposits as of March 2018, is one of Japan’s big three banking groups, along with Mitsubishi UFJ Financial Group, or MUFG, and Mizuho. In Japan, the environment for banks has been tough for years and we expect it to remain so. The long-running deflationary environment in the country has led to persistently low demand for loans, with the loan/deposit ratio having declined from 74% in 2000 to around 55% at ...
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