Capital Ratio Information SMFG (b) Income-Producing Real Estate (IPRE) (2) Retail Exposures A. Residential Mortgage Exposures (A) Rating Procedures (B) Portfolio SMFG  2011 185 GLYPH<129> “Residential mortgage exposures” includes mortgage loans to individuals and some real estate loans in which the property consists  of both residential and commercial facilities such as a store or rental apartment units, but excludes apartment construction loans. GLYPH<129> Mortgage loans are rated as follows. Mortgage loans are allocated to a portfolio segment with similar risk characteristics in terms of (a) default risk determined using  loan contract information, results of an exclusive grading model and a borrower category under self-assessment executed in  accordance with the financial inspection manual of the Japanese FSA, and (b) recovery risk at the time of default determined using  Loan To Value (LTV) calculated based on the assessment value of collateral real estate. PDs and LGDs are estimated based on the  default experience for each segment and taking into account the possibility of estimation errors. Further, the portfolio is subdivided based on the lapse of years from the contract date, and the effectiveness of segmentation in  terms of default risk and recovery risk is validated periodically. Internal data are used to estimate and validate PDs and LGDs. The definition of default is the definition stipulated in the  Notification. March 31, 2011 Billions of yen Weighted average  PD Weighted average  LGD Weighted average  EL default Weighted average  risk weight Exposure amount Total  On-balance sheet assets Off-balance  sheet assets  Mortgage loans PD segment: Not delinquent Use model ......................... ¥10,773.9 ¥10,716.0 ¥57.9 0.40% 42.14% —% 27.25% Others ............................... 703.4 703.4 — 0.92 58.92 — 75.66 Delinquent ............................. 105.3 98.2 7.1 29.44 47.09 — 267.96 Default .......................................... 216.8 216.4 0.4 100.00 38.36 36.34 25.24 Total .............................................. ¥11,799.4 ¥11,734.0 ¥65.4 — — — — Billions of yen Exposure amount Weighted average CCF Weighted average PD Weighted average LGD Weighted average EL default Weighted average  risk weight March 31, 2010 Total On-balance  sheet assets  Off-balance  sheet assets  Undrawn amount J1-J3 ................................... ¥ 447.4 ¥ 433.2 ¥ 14.2 ¥ — —% 0.05% 34.47% —% 12.15% J4-J6 ................................... 1,024.4 879.1 145.3 4.2 75.00 2.26 33.31 — 83.85 J7 (excluding J7R) ............... 45.5 42.0 3.5 — — 14.11 34.14 — 167.65 Others .................................. 67.3 65.5 1.8 2.5 75.00 8.74 35.23 — 72.00 Default (J7R, J8-J10) ........... 9.6 9.6 — — — 100.00 50.48 49.60 10.92 Total ..................................... ¥1,594.2 ¥1,429.4 ¥164.8 ¥6.7 — — — — — Billions of yen Exposure amount Weighted average CCF Weighted average PD Weighted average LGD Weighted average EL default Weighted average  risk weight March 31, 2011 Total On-balance  sheet assets  Off-balance  sheet assets  Undrawn amount J1-J3 ................................... ¥ 546.9 ¥ 487.0  ¥ 59.9  ¥0.6  75.00% 0.06% 26.77% —% 11.71% J4-J6 ................................... 920.1 832.1 88.0 3.6 75.00 0.87 34.73 — 60.42 J7 (excluding J7R) ............... 78.0 65.9 12.2 — — 14.08 27.09 — 125.31 Others .................................. 74.2 72.2 2.1 2.6 75.00 9.77 36.14 — 62.17 Default (J7R, J8-J10) ........... 22.8 22.7 0.1 — — 100.00 49.85 48.37 18.53 Total ..................................... ¥1,642.0 ¥1,479.8 ¥162.2 ¥6.8 — — — — — Billions of yen Exposure amount Weighted average CCF Weighted average PD Weighted average LGD Weighted average ELdefault Weighted average  risk weight March 31, 2010 Total On-balance  sheet assets  Off-balance  sheet assets  Undrawn amount G1-G3  .................................. ¥103.0 ¥ 97.7 ¥ 5.3 ¥ 1.8 75.00% 0.51% 20.86% —% 41.74% G4-G6 .................................. 43.8 34.4 9.5 10.2 75.00 2.43 12.95 — 36.56 G7 (excluding G7R) ............. 10.7 10.7 0.1 0.1 75.00 19.75 29.84 — 170.29 Others .................................. — — — — — — — — — Default (G7R, G8-G10) ........ 5.5 5.5 0.0 — — 100.00 65.16 57.96 89.94 Total ..................................... ¥163.1 ¥148.2 ¥14.9 ¥12.1 — — — — —