SMFG Capital Ratio Information (B) Portfolio (B) Portfolio A. Equity Exposures (A) Rating Procedures a. Equity Exposure Amounts b. PD/LGD Approach B. Credit Risk-Weighted Assets under Article 145 of the Notification (A) Outline of method for calculating credit risk assets Billions of yen March 31 2011 2010 Exposures under Article 145 of the Notification ........................................................................ ¥697.3 ¥667.8 March 31 Billions of yen 2011 2010 Exposure  amount Weighted  average  PD  Weighted average  risk weight Exposure  amount Weighted average  PD Weighted average  risk weight J1-J3 ....................................................... ¥536.5 0.05% 108.50% ¥514.7 0.05% 110.62% J4-J6 ....................................................... 79.5 0.86 213.83 79.1 1.51 250.79 J7 (excluding J7R) ................................... 2.1 9.02 402.32 1.6 12.54 444.29 Others ...................................................... 155.4 0.35 139.50 128.7 0.40 121.35 Default (J7R, J8-J10) ............................... 0.5 100.00 — 0.5 100.00 — Total ......................................................... ¥774.0 — — ¥724.6 — — Billions of yen March 31 2011 2010 Market-based approach ............................................................................................................ ¥ 251.6  ¥ 234.2 Simple risk weight method .................................................................................................... 158.2  149.5 Listed equities (300%) ....................................................................................................... 69.5  48.0 Unlisted equities (400%) .................................................................................................... 88.7  101.5 Internal models method ......................................................................................................... 93.4  84.7 PD/LGD approach ..................................................................................................................... 774.0  724.6 Grandfathered equity exposures ............................................................................................... 2,068.1  2,259.6 Total ........................................................................................................................................... ¥3,093.7  ¥3,218.4 When acquiring equities subject to the PD/LGD approach, issuers are assigned obligor grades using the same rules as those of  general credits to C&I companies, sovereigns and financial institutions. The obligors are monitored (for details, please refer to page  37) and their grades are revised if necessary (credit risk-weighted asset amount is set to 1.5 times when they are not monitored  individually). In the case there is no credit transaction with the issuer or it is difficult to obtain financial information, internal  grades are assigned using ratings of external rating agencies if it is a qualifying investment. In the case it is difficult to obtain  financial information and it is not a qualifying investment, the simple risk weight method under the market-based approach is  applied.  Notes: 1. The above exposures are “equity exposures” stipulated in the Notification and differ from “stocks” described in the consolidated financial statements. 2. “Grandfathered equity exposures” amount is calculated in accordance with Supplementary Provision 13 of the Notification. Notes: 1. The above exposures are “equity exposures” stipulated in the Notification to which the PD/LGD approach is applied and differ from “stocks” described in the  consolidated financial statements. 2. “Others” includes exposures to overseas corporate entities. Exposures under Article 145 of the Notification include credits to funds. In the case of such exposures, in principle, each underlying  asset of the fund is assigned an obligor grade to calculate the asset’s credit risk-weighted asset amount and the amounts are totaled  to derive the credit risk-weighted asset amount of the fund. When equity exposures account for more than half of the underlying  assets of the fund, or it is difficult to directly calculate the credit risk-weighted asset amount of individual underlying assets,  the credit risk-weighted asset amount of the fund is calculated using the simple majority adjustment method, in which credit  risk-weighted assets are calculated using a risk weight of 400% (when the risk-weighted average of individual assets underlying the  portfolio is less than 400%) or a risk weight of 1250% (in other cases). SMFG  2011 188$^{(3) Equity Exposures and Credit Risk-Weighted Assets under Article 145 of the Notification}$