Updated 14:25 IST, August 2nd 2024
End of Japan's deflation boosts SMFG quarterly profit by nearly 50%
On Friday, SMFG reported a notable increase in quarterly profit to 371.4 billion yen ($2.49 billion), up from 248 billion yen the previous year.

SMFG profit boom: Sumitomo Mitsui Financial Group (SMFG) has reaped notable benefits from Japan's end of deflation, with its first-quarter profit soaring by 49.7 per cent as core lending margins and volumes surged.
On Friday, SMFG reported a notable increase in quarterly profit to 371.4 billion yen ($2.49 billion), up from 248 billion yen the previous year.
The bank attributes this rise to stronger loan demand and corporate activities, such as mergers and acquisitions, spurred by the end of Japan's long-standing deflationary period. The Bank of Japan's recent interest rate hikes in March and July further bolstered profit margins.
SMFG beats bank peers
SMFG's performance outpaced other major Japanese banks, including Mizuho Financial Group and Mitsubishi UFJ Financial Group (MUFG). Mizuho's quarterly profit rose 17.9 per cent, while MUFG saw an 11.7 per cent increase, adjusted for accounting period changes.
The bank has maintained its ambitious full-year profit forecast of 1.06 trillion yen for the fiscal year ending in March 2025, marking its first forecast to surpass the 1 trillion yen threshold.
This optimism is further supported by the BOJ's decision on Wednesday to raise the short-term interest rate to 0.25 per cent, widening the spread between deposit and lending rates and fueling expectations of continued profit growth.
(With Reuters Inputs)
Published 14:25 IST, August 2nd 2024