Sumitomo Mitsui Banking Corporation (Nonconsolidated) Sumitomo Mitsui Banking Corporation 1. Operating Results 2. Income Analysis Expenses Gross Banking Profit The following is a summary of SMBC’s nonconsolidated financial results for the fiscal year ended March 31, 2011. Gross banking profit in fiscal 2010 increased by ¥76.4 billion  from the previous fiscal year to ¥1,531.7 billion, and  expenses (excluding nonrecurring losses) rose by ¥13.4 bil- lion to ¥699.1 billion. As a result, banking profit (before pro- vision for general reserve for possible loan losses) increased  by ¥63.0 billion to ¥832.5 billion. Gross banking profit increased by ¥76.4 billion year on year  to ¥1,531.7 billion. This was mainly due to increased gains  on bonds by quickly responding to fluctuations in market  interest rates, and higher total fees for loan-related services  at the International Banking Unit. Ordinary profit — banking profit (before provision for  general reserve for possible loan losses) adjusted for nonre- curring items such as credit cost and net losses on stocks —  increased by ¥132.9 billion to ¥595.7 billion. After adjustment of ordinary profit for extraordinary gains  and losses and income taxes, SMBC posted net income of  ¥421.1 billion, a year-on-year increase of ¥103.1 billion. Expenses (excluding nonrecurring losses) increased by  ¥13.4 billion to ¥699.1 billion. This increase was due mainly  to costs associated with a bolstering of personnel in stra- tegic business domains and investments made in previous  fiscal years in branches and computer systems, which out- weighed the benefits of ongoing cost-cutting measures in  publicity and advertising expenses and building and mainte- nance expenses. Banking profit (before provision for general reserve for pos- sible loan losses) increased by ¥63.0 billion from the previ- ous fiscal year to ¥832.5 billion. Banking Profit Banking Profit Millions of yen Year ended March 31 2011  (A) 2010 (B) Increase (decrease) (A) – (B) Gross banking profit ...................................................................................................... ¥1,531,759 ¥1,455,275 ¥ 76,484 [Gross domestic banking profit] ................................................................................ [1,114,329] [1,117,224] [(2,895)] [Gross international banking profit] ........................................................................... [417,429] [338,050] [79,379] Net interest income ................................................................................................... 967,825 1,046,382 (78,557) Trust fees ................................................................................................................... 2,299 1,736 563 Net fees and commissions ........................................................................................ 302,667 286,714 15,953 Net trading income .................................................................................................... 151,070 115,356 35,714 Net other operating income ....................................................................................... 107,897 5,085 102,812 [Gross banking profit (excluding gains (losses) on bonds)] ....................................... [1,384,638] [1,418,005] [(33,367)] Expenses (excluding nonrecurring losses) .................................................................... (699,197) (685,752) (13,445) Personnel expenses .................................................................................................. (249,842) (245,728) (4,114) Nonpersonnel expenses ............................................................................................ (411,471) (403,265) (8,206) Taxes.......................................................................................................................... (37,883) (36,759) (1,124) Banking profit (before provision for general reserve for possible loan losses)  .... 832,562 769,522 63,040 [Banking profit (before provision for general reserve for possible loan losses and gains (losses) on bonds)]................................................. [685,441] [732,252] [(46,811)] Provision for general reserve for possible loan losses .................................................. 12,335 9,067 3,268 Banking profit ................................................................................................................ 844,897 778,589 66,308 Billions of yen Year ended March 31, 2011 Consumer  Banking Unit Middle Market Banking Unit Corporate  Banking Unit International Banking Unit Treasury Unit Head Office  Account Total Banking profit (before provision for general reserve for possible loan losses) ................. ¥97.5 ¥222.2 ¥165.3 ¥128.6 ¥312.8 ¥(93.8) ¥832.6 Year-on-year increase (decrease) ............................... 3.6 (24.1) (3.0) 25.1 56.1 5.4 63.1 <Reference> Banking Profit by Business Unit Notes: 1. Year-on-year comparisons are those used for internal reporting and exclude changes due to interest rate and foreign exchange rate fluctuations. 2. “Head Office Account” consists of (1) financing costs on preferred securities and subordinated debt, (2) profit earned on investing the Bank’s own capital,  and (3) adjustment of inter-unit transactions, etc. SMFG  2011 26