SMFG Assets and Liabilities (Consolidated) Reserve for Possible Loan Losses Risk-Monitored Loans Problem Assets Based on the Financial Reconstruction Law Millions of yen March 31 2011 2010 General reserve ............................................................................................... ¥ 696,154 ¥ 702,606 Specific reserve ............................................................................................... 362,137 365,087 Loan loss reserve for specific overseas countries .......................................... 653 636 Reserve for possible loan losses ..................................................................... ¥1,058,945 ¥1,068,329 Amount of direct reduction .............................................................................. ¥ 867,866 ¥ 843,781 Millions of yen March 31 2011 2010 Bankrupt loans ................................................................................................ ¥ 90,777 ¥ 165,131 Non-accrual loans ........................................................................................... 1,031,828 1,075,782 Past due loans (3 months or more) ................................................................. 25,438 38,315 Restructured loans .......................................................................................... 498,323 250,256 Total ................................................................................................................. ¥1,646,369 ¥1,529,484 Amount of direct reduction .............................................................................. ¥ 735,638 ¥ 727,633 Millions of yen March 31 2011 2010 Bankrupt and quasi-bankrupt assets .............................................................. ¥ 281,611 ¥ 392,424 Doubtful assets ............................................................................................... 875,837 881,239 Substandard loans .......................................................................................... 532,873 298,179 Total of problem assets ................................................................................... 1,690,321 1,571,842 Normal assets ................................................................................................. 67,868,754 68,431,335 Total ................................................................................................................. ¥69,559,075 ¥70,003,177 Amount of direct reduction .............................................................................. ¥ 867,866 ¥ 843,781 Notes:  Definition of problem asset categories 1. Bankrupt and quasi-bankrupt assets: Credits to borrowers undergoing bankruptcy, corporate reorganization, and rehabilitation proceedings, as well as  claims of a similar nature 2. Doubtful assets: Credits for which final collection of principal and interest in line with original agreements is highly improbable due to deterioration of  financial position and business performance, but not insolvency of the borrower 3. Substandard loans: Past due loans (3 months or more) and restructured loans, excluding 1. and 2. 4. Normal assets: Credits to borrowers with good business performance and in financial standing without identified problems and not classified into the 3  categories above Notes:  Definition of risk-monitored loan categories 1. Bankrupt loans: Credits for which accrued interest is not accounted in revenue; credits extended to borrowers that are undergoing bankruptcy,  corporate reorganization and rehabilitation proceedings or debtors receiving orders of disposition by suspension of business at bill clearinghouses 2. Non-accrual loans: Credits for which accrued interest is not accounted in revenue; credits, excluding loans to bankrupt borrowers and loans with grace for  interest payment to assist in corporate reorganization or to support business 3. Past due loans (3 months or more): Loans with payment of principal or interest in arrears for more than 3 months, calculated from the day following the  contractual due date, excluding borrowers in categories 1. and 2. 4. Restructured loans: Loans to borrowers in severe financial condition given certain favorable terms and conditions to assist in corporate rehabilitation or to  support business, excluding borrowers in categories 1. through 3. SMFG  2011 150