SMBC Loans (Nonconsolidated) Off-Balancing Problem Assets Billions of yen March 31, 2009 ➀ Fiscal 2009 March 31, 2010 ➁ Fiscal 2010 March 31, 2011 ➂ New occurrences Off-balanced New occurrences Off-balanced Bankrupt and quasi-bankrupt assets ... ¥319.6 ¥ 86.1 ¥(181.4) ¥224.3 ¥ 43.5 ¥(129.3) ¥138.5 Doubtful assets .................................... 678.3 529.3 (509.9) 697.7 376.9 (389.8) 684.8 Total ...................................................... ¥997.9 ¥615.4 ¥(691.3) ¥922.0 ¥420.4 ¥(519.1) ¥823.3 Increase/ Decrease ➁  –  ➀ Increase/ Decrease ➂  –  ➁ Bankrupt and quasi-bankrupt assets ... ¥(95.3) ¥(85.8) Doubtful assets .................................... 19.4 (12.9) Total ...................................................... ¥(75.9) ¥(98.7) Notes: 1. The off-balancing (also known as “final disposal”) of problem assets refers to the removal of such assets from the bank’s balance sheet by way of sale,  direct write-off or other means. 2. The figures shown in the above table under “new occurrences” and “off-balanced” are simple additions of the figures for the first and second halves of the  2 periods reviewed. Amounts of ¥179.6 billion for fiscal 2009 and ¥74.3 billion in fiscal 2010, recognized as “new occurrences” in the first halves of the  terms, were included in the amounts off-balanced in the respective second halves. SMFG  2011 170 Category of borrowers under self-assessment March 31, 2011 Problem assets based on the Financial Reconstruction Law Reserve for possible loan losses Bankrupt Borrowers Effectively Bankrupt Borrowers Potentially Bankrupt Borrowers Borrowers Requiring Caution Normal Borrowers Classification under self-assessment Classification I Classification II Classification III Reserve ratio NPL ratio  ( A )  /  ( 4 ) 1.81%  (Note 6) Loan loss reserve for specific overseas countries Total reserve for possible loan losses ( B ) Specific reserve + General reserve for substandard loans General reserve  for substandard  loans ¥102.8  ¥118.3 ¥18.6 ( Note 2 ) 56.75% ( Note 3 ) Reserve ratio ( B ) / ( D ) 70.28% (Note 7) 100% ( Note 3 ) 77.14% ( Note 3 ) 6.53% [14.14%] ( Note 4 ) 19.57% ( Note 3 ) 0.23% ( Note 4 ) ¥209.1 ( Note 2 ) ( Note 5 ) ¥483.5 ¥0.3 ¥330.5 ¥711.5 ¥138.5 ¥684.8 ¥303.0 ¥61,025.8 ( 4 ) ( A ) = ( 1 ) + ( 2 ) + ( 3 ) ¥62,152.1 ¥1,126.3 ¥124.0 ¥413.7 ¥14.5 ¥271.1 Portion secured by collateral or  guarantees, etc. ( C ) = ( 5 ) + ( 6 ) + ( 7 ) ¥656.0 Coverage ratio  { ( B ) + ( C ) }  /  ( A ) Unsecured portion ( D ) = ( A ) – ( C ) ¥470.3 87.59% Classification IV  (Billions of yen) Specific reserve General reserve Bankrupt and quasi-bankrupt assets (1) Claims to normal borrowers Portion of claims secured by collateral or guarantees, etc. (5) Fully reserved Necessary amount reserved Direct write-offs (Note 1) Portion of claims secured by collateral or guarantees, etc. (6) Portion of substandard loans secured by collateral or guarantees, etc. (7) Claims to borrowers requiring caution, excluding claims to substandard borrowers Doubtful assets (2) Substandard loans (3) (Claims to substandard borrowers) Normal assets Total 2. Includes reserves for assets that are not subject to disclosure under the Financial Reconstruction Law. (Bankrupt/Effectively Bankrupt Borrowers: ¥4.1  billion; Potentially Bankrupt Borrowers: ¥18.3 billion) 3. Reserve ratios for claims on Bankrupt/Effectively Bankrupt Borrowers, Potentially Bankrupt Borrowers, Substandard Borrowers, and Borrowers Requiring  Caution: The proportion of each category’s total unsecured claims covered by reserve for possible loan losses. 4. Reserve ratios for claims on Normal Borrowers and Borrowers Requiring Caution (excluding claims to Substandard Borrowers): The proportion of each  category’s total claims covered by reserve for possible loan losses. The reserve ratio for unsecured claims on Borrowers Requiring Caution (excluding  claims to Substandard Borrowers) is shown in brackets. 5. Includes amount of specific reserve for Borrowers Requiring Caution totaling ¥0.2 billion. 6. Ratio of problem assets to total assets subject to the Financial Reconstruction Law 7. Reserve ratio = (Specific reserve + General reserve for substandard loans) / (Bankrupt and quasi-bankrupt assets + Doubtful assets + Substandard loans –  Portion secured by collateral or guarantees, etc.) Classification under Self-Assessment, Disclosure of Problem Assets, and Write-Offs/Reserves Notes: 1. Includes amount of direct reduction totaling ¥496.2 billion.