Financial Review Sumitomo Mitsui Financial Group (Consolidated) Sumitomo Mitsui Financial Group, Inc. and Subsidiaries Number of Consolidated Subsidiaries, and Subsidiaries and Affiliates Accounted for by the Equity Method 1. Operating Results The following is a summary of SMFG’s consolidated financial results for the fiscal year ended March 31, 2011. Operating results for fiscal 2010 include the results of 327  consolidated subsidiaries and 47 subsidiaries and affiliates  accounted for by the equity method. In fiscal 2010, net interest income decreased due mainly  to deterioration in interest margins on deposits and loans  resulting from lower interest rates in Japan. However, SMBC  increased gains on bonds by quickly responding to fluctua- tions in market interest rates, and SMFG’s net fees and  commissions increased mainly because of an increase in  the number of consolidated subsidiaries. As a result, gross  profit increased by ¥268.0 billion year on year to ¥2,504.7  billion. After adjusting for general and administrative  expenses, credit cost, net losses on stocks, equity in losses  of affiliates and other items, ordinary profit increased by  ¥266.6 billion year on year to ¥825.4 billion, due mainly to  a decrease in SMBC’s credit cost as a result of the tailored  efforts to assist certain debtors to improve their businesses  and financial conditions. After adjusting ordinary profit for extraordinary gains  and losses, income taxes, and other items, net income  increased by ¥204.3 billion year on year to ¥475.8 billion. Income Summary Notes: 1. Consolidated gross profit = (Interest income – Interest expenses) + Trust fees + (Fees and commissions – Fees and commissions payments)  + (Trading income – Trading losses) + (Other operating income – Other operating expenses) 2. Consolidated net business profit = SMBC’s nonconsolidated banking profit (before provision for general reserve for possible loan losses)  + SMFG’s ordinary profit + Other subsidiaries’ ordinary profit (excluding nonrecurring factors) + Equity method affiliates’ ordinary profit  ✕  Ownership ratio – Internal transactions (dividends, etc.) SMFG  2011 23 Millions of yen Year ended March 31 2011  (A) 2010 (B) Increase (decrease) (A) – (B) Consolidated gross profit .............................................................................................. ¥2,504,730 ¥2,236,634 ¥268,096 Net interest income ................................................................................................... 1,317,651 1,380,912 (63,261) Trust fees ................................................................................................................... 2,335 1,778 557 Net fees and commissions ........................................................................................ 766,230 608,616 157,614 Net trading income .................................................................................................... 237,093 194,087 43,006 Net other operating income ....................................................................................... 181,419 51,238 130,181 General and administrative expenses ........................................................................... (1,355,322) (1,161,302) (194,020) Credit cost (A) ................................................................................................................ (220,162) (473,937) 253,775 Write-off of loans ....................................................................................................... (156,571) (176,672) 20,101 Provision for specific reserve for possible loan losses .............................................. (63,574) (184,257) 120,683 Provision for general reserve for possible loan losses .............................................. 14,919 (17,944) 32,863 Others ........................................................................................................................ (14,935) (95,063) 80,128 Net losses on stocks ..................................................................................................... (91,949) (10,078) (81,871) Equity in losses of affiliates ........................................................................................... (13,319) (21,542) 8,223 Net other income (expenses)......................................................................................... 1,452 (11,003) 12,455 Ordinary profit ............................................................................................................... 825,428 558,769 266,659 Extraordinary gains (losses)........................................................................................... 1,884 (671) 2,555 Losses on impairment of fixed assets ....................................................................... (5,411) (12,856) 7,445 Gains on recoveries of written-off claims (B) ............................................................. 2,813 968 1,845 Income before income taxes and minority interests ..................................................... 827,313 558,097 269,216 Income taxes: Current ...................................................................................................................... (97,446) (104,110) 6,664 Deferred ..................................................................................................................... (143,325) (74,759) (68,566) Income before minority interests ................................................................................... 586,542 379,227 207,315 Minority interests in net income ................................................................................... (110,646) (107,668) (2,978) Net income .................................................................................................................... ¥ 475,895 ¥ 271,559 ¥204,336 Net total credit cost (A) + (B) ......................................................................................... ¥ (217,348) ¥ (472,968) ¥255,620 [Reference] Consolidated net business profit (Billions of yen) ......................................................... ¥ 1,002.0 ¥ 832.3 ¥ 169.7 March 31 2011  (A) 2010 (B) Increase (decrease) (A) – (B) Consolidated subsidiaries ............................................................................................. 327 307 20 Subsidiaries and affiliates accounted for by the equity method ................................... 47 58 (11)