Loans (Nonconsolidated) SMBC Risk-Monitored Loans Problem Assets Based on the Financial Reconstruction Law, and Risk-Monitored Loans Notes:  Definition of risk-monitored loan categories Notes:  Definition of problem asset categories These assets are disclosed based on the provisions of Article 7 of the Financial Reconstruction Law (Law No. 132 of 1998) and classified into the 4  categories based on financial position and business performance of obligors in accordance with Article 6 of the Law. Assets in question include private place- ment bonds, loans and bills discounted, foreign exchanges, accrued interest, and suspense payment in “other assets,” customers’ liabilities for acceptances  and guarantees, and securities lent under the loan for consumption or leasing agreements. 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 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 169 Millions of yen March 31 2011 2010 Bankrupt loans ................................................................................................ ¥ 65,802 ¥ 112,973 Non-accrual loans ........................................................................................... 721,792 776,364 Past due loans (3 months or more) ................................................................. 12,327 22,889 Restructured loans .......................................................................................... 290,682 155,790 Total ................................................................................................................. ¥1,090,605 ¥1,068,017 Amount of direct reduction .............................................................................. ¥ 426,203 ¥ 411,715 Millions of yen March 31 2011 2010 Bankrupt and quasi-bankrupt assets .............................................................. ¥ 138,433 ¥ 224,335 Doubtful assets ............................................................................................... 684,826 697,670 Substandard loans .......................................................................................... 303,010 178,679 Total of problem assets ................................................................................... 1,126,269 1,100,685 Normal assets ................................................................................................. 61,025,837 62,116,059 Total ................................................................................................................. ¥62,152,106 ¥63,216,745 Amount of direct reduction .............................................................................. ¥ 496,205 ¥ 478,042 Problem Assets Based on the Financial Reconstruction Law Category of borrowers under self-assessment Problem assets based on the Financial Reconstruction Law Risk-monitored loans Other assets Bankrupt loans Non-accrual loans Past due loans (3 months or more) Restructured loans Bankrupt Borrowers Total loans Total loans Other assets Bankrupt and quasi-bankrupt assets Substandard loans (Normal assets) Doubtful assets Normal Borrowers Effectively Bankrupt Borrowers Potentially Bankrupt Borrowers Borrowers Requiring Caution A B C C