Sumitomo Mitsui April-June financial results drastically lower profits Preparedness for loan losses put pressure on business performance July 29, 20:10
For the major financial group, Sumitomo Mitsui Financial Group, the financial results for the three months from April to June had a final profit decrease of 60% compared to the same period of the previous year. Loans to companies affected by the new coronavirus have increased, but profits have been squeezed by swelling costs for loan losses.
As announced by Sumitomo Mitsui Financial Group, the final profit for the three months from April to June was 86 billion yen, a decrease of 60% compared to the same period of the previous year.
The balance of loans as of the end of June was more than 84 trillion yen, an increase of 11% from a year ago, because we applied for a loan from a company whose cash flow became difficult due to the new coronavirus.
On the other hand, however, the cost of accumulating provisions for loan losses increased to 114.8 billion yen, which is about three times the same period in the previous year in three months, pushing down overall profits.
Other large financial groups, regional banks, and credit unions are increasing their applications for loans, but similarly, costs to prepare for loan losses are likely to put pressure on business results.