SMFG Capital Ratio Information Billions of yen March 31 2011 2010 Capital requirements for credit risk: Internal ratings-based approach ............................................................................................................ ¥4,605.9  ¥5,194.2 Corporate exposures: ........................................................................................................................ 2,790.4  3,381.4 Corporate exposures (excluding specialized lending) .................................................................... 2,393.4  2,950.7 Sovereign exposures ...................................................................................................................... 39.5  37.4 Bank exposures .............................................................................................................................. 124.9  139.7 Specialized lending ......................................................................................................................... 232.6  253.6 Retail exposures: ................................................................................................................................ 904.0  905.4 Residential mortgage exposures .................................................................................................... 438.3  434.6 Qualifying revolving retail exposures .............................................................................................. 152.3  110.9 Other retail exposures ..................................................................................................................... 313.4  359.9 Equity exposures: ............................................................................................................................... 335.3  336.6 Grandfathered equity exposures .................................................................................................... 175.4  191.6 PD/LGD approach .......................................................................................................................... 84.9  81.4 Market-based approach ................................................................................................................. 75.1  63.6 Simple risk weight method.......................................................................................................... 47.8  46.6 Internal models method .............................................................................................................. 27.3  17.0 Credit risk-weighted assets under Article 145 of the Notification ...................................................... 160.4  183.6 Securitization exposures .................................................................................................................... 150.7  107.7 Other exposures ................................................................................................................................. 265.1  279.5 Standardized approach .......................................................................................................................... 699.7  570.0 Total capital requirements for credit risk ................................................................................................ 5,305.6  5,764.2 Capital requirements for market risk: Standardized measurement method ...................................................................................................... 29.1  21.1 Interest rate risk .................................................................................................................................. 21.9  15.3 Equity position risk ............................................................................................................................. 3.2  1.9 Foreign exchange risk......................................................................................................................... 2.3  2.6 Commodities risk ................................................................................................................................ 1.6  0.1 Options ............................................................................................................................................... 0.1  1.2 Internal models method .......................................................................................................................... 17.6  14.7 Total capital requirements for market risk .............................................................................................. 46.7  35.9 Capital requirements for operational risk: Advanced measurement approach ........................................................................................................ 235.1  232.2 Basic indicator approach ........................................................................................................................ 60.2  17.2 Total capital requirements for operational risk........................................................................................ 295.3  249.4 Total amount of capital requirements  ....................................................................................................... ¥5,647.6  ¥6,049.5 ■  Capital Requirements Notes: 1. Capital requirements for credit risk are capital equivalents to “credit risk-weighted assets  ✕  8%” under the standardized approach and “credit risk-weighted assets  ✕  8% +  expected loss amount” under the IRB approach. Regarding exposures to be deducted from capital, the deduction amount is added to the amount of required capital. 2. Portfolio classification is after CRM. 3. “Securitization exposures” includes such exposures based on the standardized approach. 4. “Other exposures” includes estimated lease residual values, purchased receivables (including exposures to qualified corporate enterprises and others), long settlement  transactions and other assets. 1. Scope (1) Domestic Operations (2) Overseas Operations ■  Internal Ratings-Based (IRB) Approach  THE MINATO BANK, LTD. and SMBC Finance Service Co., Ltd. have adopted the foundation IRB approach.  Sumitomo Mitsui Banking Corporation Europe Limited, Sumitomo Mitsui Banking Corporation (China) Limited, Sumitomo Mitsui  Banking Corporation of Canada, Banco Sumitomo Mitsui Brasileiro S.A., ZAO Sumitomo Mitsui Rus Bank, PT Bank Sumitomo Mitsui  Indonesia, Sumitomo Mitsui Banking Corporation Malaysia Berhad, SMBC Leasing and Finance, Inc., SMBC Capital Markets, Inc.,  SMBC Nikko Capital Markets Limited, SMBC Derivative Products Limited and SMBC Capital Markets (Asia) Limited  Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Card Company, Limited and SMBC Guarantee Co., Ltd. SMFG and the following consolidated subsidiaries have adopted the advanced IRB approach for exposures as of March 31, 2009. Among consolidated subsidiaries that have adopted the standardized approach for exposures as of March 31, 2011, Sumitomo Mitsui  Finance and Leasing Co., Ltd. is scheduled to adopt the foundation IRB approach from March 31, 2012, and Kansai Urban Banking  Corporation from March 31, 2013. Note: Directly controlled SPCs and limited partnerships for investment of consolidated subsidiaries using the advanced IRB approach have also adopted the advanced IRB  approach. Further, the advanced IRB approach is applied to equity exposures on a group basis, including equity exposures of consolidated subsidiaries applying the  standardized approach.  SMFG  2011 181