SMFG Capital Ratio Information (4) Analysis of Actual Losses A. Year-on-Year Comparison of Actual Losses SMFG recorded total credit costs (the total of the general reserve, non-performing loan write-offs, and gains on collection of written-off  claims) of ¥217.3 billion on a consolidated basis for fiscal year 2010, a decrease of ¥255.7 billion compared to the previous fiscal year. SMBC recorded ¥94.3 billion in total credit costs on a non-consolidated basis in fiscal year 2010, a decrease of ¥160.4 billion com- pared to the previous fiscal year. By exposure category, the credit cost for “corporate exposures” decreased by ¥144.7 billion compared  to the previous year, to ¥71.9 billion. The credit cost for “bank exposures” decreased by ¥17.5 billion compared to the previous year,  to ¥(14.0) billion. These results are primarily due to the measures taken by SMBC to improve the business and financial conditions of  borrowers according to the circumstances of each borrower, and a partial reversal of the loan-loss reserve. Notes: 1. The above amounts do not include gains/losses on “equity exposures,” “exposures on capital market-driven transactions (such as bonds)” and “exposures under Article  145 of the Notification” that were recognized as gains/losses on bonds and stocks in the statements of income. 2. Exposure category amounts do not include general reserve for Normal Borrowers. 3. Bracketed fiscal year amounts indicate gains generated by the reversal of reserve, etc. 4. Credit costs for “Residential mortgage exposures” and “QRRE” guaranteed by consolidated subsidiaries are not included in the total credit costs of SMBC  (nonconsolidated). Notes: 1. Amounts on consumer loans guaranteed by consolidated subsidiaries or affiliates as well as on “equity exposures” and “exposures under Article 145 of the Notification”  are excluded. 2. “Estimated loss amounts” are the EL at the beginning of the term. 3. “After deduction of reserves” represents the estimated loss amounts after deduction of reserves for possible losses on substandard borrowers or below. Total Credit Costs  Billions of yen Fiscal 2010 (A) Fiscal 2009 (B) Fiscal 2008 Increase (decrease)  (A) – (B) SMFG (consolidated) total ..................................................... ¥217.3 ¥473.0 ¥767.8 ¥(255.7) SMBC (consolidated) total .................................................... 159.8 419.4 724.4 (259.6) SMBC (nonconsolidated) total .............................................. 94.3 254.7 550.1 (160.4) Corporate exposures ......................................................... 71.9 216.6 411.4 (144.7) Sovereign exposures ......................................................... 5.4 3.9 (0.4) 1.5 Bank exposures ................................................................. (14.0) 3.5 22.7 (17.5) Residential mortgage exposures ....................................... 0.3 0.7 0.5 (0.4) QRRE ................................................................................. (0.1) 0.1 0.0 (0.2) Other retail exposures ....................................................... 34.0 61.6 68.1 (27.6) Billions of yen Fiscal 2010 Fiscal 2009 Estimated loss amounts Actual loss  amounts Estimated loss amounts Actual loss  amounts After deduction of reserves After deduction of reserves SMFG (consolidated) total ................................ ¥ — ¥ — ¥217.3 ¥ — ¥ — ¥473.0 SMBC (consolidated) total ............................... — — 159.8 — — 419.4 SMBC (nonconsolidated) total ......................... 1,204.3 417.2 94.3 1,197.2 354.0 254.7 Corporate exposures .................................... 1,021.1 277.4 71.9 984.0 210.0 216.6 Sovereign exposures .................................... 7.8 6.3 5.4 5.8 4.3 3.9 Bank exposures ............................................ 30.5 19.2 (14.0) 52.1 34.4 3.5 Residential mortgage exposures .................. 4.1 3.2 0.3 4.0 3.4 0.7 QRRE ............................................................ 0.1 (0.0) (0.1) 0.1 0.1 0.1 Other retail exposures .................................. 140.8 111.2 34.0 151.2 107.5 61.6 Billions of yen Fiscal 2008 Fiscal 2007 Estimated loss amounts Actual loss  amounts Estimated loss amounts Actual loss  amounts After deduction of reserves After deduction of reserves SMFG (consolidated) total ................................ ¥ — ¥ — ¥767.8 ¥ — ¥ — ¥248.6  SMBC (consolidated) total ............................... — — 724.4 — — 221.6  SMBC (nonconsolidated) total ......................... 954.2 323.9 550.1 887.7  311.4  147.8  Corporate exposures .................................... 806.7 278.6 411.4 778.6  252.6  143.2  Sovereign exposures .................................... 9.0 7.5 (0.4) 11.2  9.6  0.4  Bank exposures ............................................ 6.1 5.9 22.7 5.1  4.9  0.0  Residential mortgage exposures .................. 4.0 3.6 0.5 4.6  4.1  0.1  QRRE ............................................................ 0.1 0.1 0.0 0.1  0.1  0.0  Other retail exposures .................................. 128.3 65.9 68.1 88.2  53.1  59.8  SMFG  2011 189 B. Comparison of Estimated and Actual Losses