Ordinary Profit Extraordinary Gains (Losses) Net Income Nonrecurring Losses (Credit Cost, etc.) Millions of yen Year ended March 31 2011  (A) 2010 (B) Increase (decrease) (A) – (B) Banking profit (before provision for general reserve for possible loan losses) .............. ¥832,562 ¥ 769,522 ¥ 63,040 Provision for general reserve for possible loan losses (A) ............................................. 12,335 9,067 3,268 Banking profit ................................................................................................................ 844,897 778,589 66,308 Nonrecurring gains (losses) ........................................................................................... (249,193) (315,839) 66,646 Credit cost (B) ............................................................................................................ (107,660) (263,805) 156,145 Net gains (losses) on stocks ...................................................................................... (87,285) 3,857 (91,142) Gains on sale of stocks ......................................................................................... 21,671 56,719 (35,048) Losses on sale of stocks ....................................................................................... (1,604) (886) (718) Losses on devaluation of stocks ........................................................................... (107,353) (51,975) (55,378) Others ........................................................................................................................ (54,247) (55,892) 1,645 Ordinary profit ............................................................................................................... 595,704 462,749 132,955 Extraordinary gains (losses)........................................................................................... (6,864) (7,999) 1,135 Gains (losses) on disposal of fixed assets ................................................................. (2,336) 2,448 (4,784) Losses on impairment of fixed assets ....................................................................... (4,288) (10,525) 6,237 Gains on recoveries of written-off claims (C)............................................................. 1,055 77 978 Income taxes: Current ....................................................................................................................... (42,386) (44,997) 2,611 Deferred ..................................................................................................................... (125,273) (91,757) (33,516) Net income .................................................................................................................... ¥421,180 ¥ 317,995 ¥103,185 Net total credit cost (A) + (B) + (C)................................................................................. ¥ (94,269) ¥(254,660) ¥160,391 Provision for general reserve for possible loan losses .............................................. 12,335 9,067 3,268 Write-off of loans ....................................................................................................... (70,775) (102,663) 31,888 Provision for specific reserve for possible loan losses .............................................. (27,104) (92,114) 65,010 Losses on sales of delinquent loans ......................................................................... (9,693) (69,259) 59,566 Provision for loan loss reserve for specific overseas countries ................................. (87) 232 (319) Gains on recoveries of written-off claims .................................................................. 1,055 77 978 Ordinary Profit and Net Income As a result of the foregoing, ordinary profit totaled ¥595.7 bil- lion, ¥132.9 billion higher than in the previous fiscal year. Extraordinary losses amounted to ¥6.8 billion, a decrease of  ¥1.1 billion from the previous year. Current income taxes amounted to ¥42.3 billion, and deferred  income taxes were ¥125.2 billion. As a result, net income  increased by ¥103.1 billion year on year to ¥421.1 billion. Nonrecurring losses amounted to ¥249.1 billion, an improve- ment of ¥66.6 billion from the previous fiscal year. This was  due mainly to a ¥156.1 billion drop in credit cost to ¥107.6 bil- lion, as a result of the tailored efforts to assist certain debtors to  improve their businesses and financial conditions, which out- weighed the impact of a ¥91.1 billion worsening in net losses  on stocks to ¥87.2 billion, due to increased write-offs. Net total credit cost — the sum of credit cost of ¥107.6 bil- lion recorded under “Nonrecurring losses,” provision for gen- eral reserve for possible loan losses, and gains on recoveries of  written-off claims — amounted to ¥94.2 billion, a year-on-year  decrease of ¥160.3 billion. SMFG  2011 27