SMFG Capital Ratio Information ■  Market Risk 1. Scope 2. Valuation Method Corresponding to Transaction Characteristics (2) Standardized Measurement Method 3. VaR Results (Trading Book) ■  Interest Rate Risk in Banking Book 1. Method of Recognizing Maturity of Demand Deposits 2. Method of Estimating Early Withdrawal from Fixed-term Deposits and Prepayment of Consumer Loans 3. VaR Results (Banking Book) The following approaches are used to calculate market risk equivalent amounts. (1) Internal Models Method General market risk of SMBC, Sumitomo Mitsui Banking Corporation Europe Limited, Sumitomo Mitsui Banking Corporation (China)  Limited, SMBC Capital Markets, Inc., SMBC Nikko Capital Markets Limited, SMBC Derivative Products Limited, and SMBC Capital  Markets (Asia) Limited Sumitomo Mitsui Banking Corporation (China) Limited, SMBC Capital Markets, Inc., SMBC Nikko Capital Markets Limited, SMBC  Derivative Products Limited, and SMBC Capital Markets (Asia) Limited All assets and liabilities held in the trading book — therefore, subject to calculation of the market risk equivalent amount — are transactions  with high market liquidity. Securities and monetary claims are carried at the fiscal year-end market price, and derivatives such as swaps,  futures and options are stated at amounts that would be settled if the transactions were terminated at the consolidated balance sheet date. Notes: 1. The VaR results for a one-day holding period with a one-sided confidence interval of 99.0%, computed daily using the historical simulation method based on four years of  historical observations. 2. Specific risks for the trading book are excluded. 3. Principal consolidated subsidiaries are included. The total amount of demand deposits expected to remain with the bank for the long term (with 50% of the lowest balance during the past  5 years as the upper limit) is recognized as a core deposit amount and interest rate risk is measured for each maturity with 5 years as the  maximum term (the average is 2.5 years). Interest rate risk in the banking book fluctuates significantly depending on the method of recognizing maturity of demand deposits (such  as current accounts and ordinary deposits from which funds can be withdrawn on demand) and the method of predicting early withdrawal  from fixed-term deposits and prepayment of consumer loans. Key assumptions made by SMBC in measuring interest rate risk in the banking  book are as follows. The rate of early withdrawal from fixed-term deposits and the rate of prepayment of consumer loans are estimated and the rates are used to  calculate cash flows used for measuring interest rate risk. Notes: 1. The VaR results for a one-day holding period with a one-sided confidence interval of 99.0%, computed daily using the historical simulation method based on four years of  historical observations. 2. Principal consolidated subsidiaries are included. GLYPH<129> Specific risk GLYPH<129> General market risk of consolidated subsidiaries other than SMBC, Sumitomo Mitsui Banking Corporation Europe Limited,  GLYPH<129> A portion of general market risk of SMBC Billions of yen Fiscal 2010 Fiscal 2009 Fiscal year-end ....................................................................................................................................... ¥1.3 ¥1.5 Maximum ................................................................................................................................................ 3.2 2.8 Minimum ................................................................................................................................................. 1.1 1.2 Average .................................................................................................................................................. 1.9 1.6 Billions of yen Fiscal 2010 Fiscal 2009 Fiscal year-end ....................................................................................................................................... ¥48.6 ¥33.8 Maximum ................................................................................................................................................ 50.9 44.0 Minimum ................................................................................................................................................. 29.7 31.8 Average .................................................................................................................................................. 40.5 37.7 SMFG  2011 200