##### Table of Contents





UNITED STATES SECURITIES AND
EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 20-F





(Mark One)



| ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g)OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------------

OR



|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------



| | For the fiscal year ended March 31, 2016
| | ----------------------------------------

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------



| | For the transition period from                      to
| | ------------------------------------------------------

OR



| ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------



| | Date of event requiring this shell company report
| | -------------------------------------------------

Commission file number: 001-34919

Kabushiki Kaisha Mitsui Sumitomo
Financial Group

(Exact name of Registrant as specified in its charter)

SUMITOMO MITSUI FINANCIAL GROUP, INC.

(Translation of registrants name into English)



|                                                |  |                                                            
|----------------------------------------------- |  | -----------------------------------------------------------
|Japan                                           |  | 1-2, Marunouchi 
1-chome, Chiyoda-ku, Tokyo 100-0005, Japan
|(Jurisdiction of incorporation or organization) |  | (Address of principal executive offices)                   

Takeshi Mikami

1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan

Telephone:
+81-3-3282-8111        Facsimile: +81-3-4333-9954

(Name, telephone, e-mail
and/or facsimile number and address of company contact person)

Securities registered or to be registered pursuant to
Section 12(b) of the Act



|                                |  |                                          
|------------------------------- |  | -----------------------------------------
|Title of Each Class             |  | Name of Each Exchange on which
registered
|Common stock, without par value |  | The New York Stock Exchange*             



|* | Not for trading, but only in connection with the listing of the American Depositary Shares, each American Depositary Share representing 1/5 of one share of the
registrants common stock.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Securities registered or to be registered pursuant to Section 12(g) of
the Act:

None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

Indicate the number of outstanding shares of each of the issuers
classes of capital or common stock as of the close of the period covered by the annual report.

At March 31, 2016, the
following shares of capital stock were outstanding: 1,414,055,625 shares of common stock (including 46,830,882 shares of common stock held by the registrant and its consolidated subsidiaries and equity-method associates as treasury stock).





Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes  x    No   ̈

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934.    Yes   ̈    No  x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule
405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in
Rule 12b-2 of the Exchange Act. (Check one):



|                           |  |                      |  |                         
|-------------------------- |  | -------------------- |  | ------------------------
|Large Accelerated Filer  x |  | Accelerated Filer   ̈ |  | Non-accelerated Filer   ̈

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in
this filing:



|             |  |                                                                                                          |  |         
|------------ |  | -------------------------------------------------------------------------------------------------------- |  | --------
|U.S. GAAP   ̈ |  | International Financial Reporting Standards as issued by the International Accounting Standards Board  x |  | Other   ̈

If Other has been checked in response to the previous question, indicate by check mark which financial
statement item the registrant has elected to follow.    Item 17   ̈    Item 18   ̈

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes   ̈    No  x









---

##### Table of Contents

TABLE OF CONTENTS



|                                                                             |  |          |   |                                                         |  |      |     | 
|---------------------------------------------------------------------------- |  | -------- | - | ------------------------------------------------------- |  | ---- | --- | 
|                                                                             |  |          |   |                                                         |  | Page |    
|Certain Defined Terms, Conventions and Presentation of Financial
Information |  |          | 1 |                                                        
|Cautionary Statement Regarding Forward-Looking Statements                    |  |          | 2 |                                                        
|PART I                                                                       |  |          | 3 |                                                        
|                                                                             |  | Item 1.  |   | Identity of Directors, Senior Management and Advisers   |  |      | 3   | 
|                                                                             |  | Item 2.  |   | Offer Statistics and Expected Timetable                 |  |      | 3   | 
|                                                                             |  | Item 3.  |   | Key Information                                         |  |      | 3   | 
|                                                                             |  | 3.A.     |   | Selected Financial Data                                 |  |      | 3   | 
|                                                                             |  | 3.B.     |   | Capitalization and Indebtedness                         |  |      | 5   | 
|                                                                             |  | 3.C.     |   | Reasons for the Offer and Use of Proceeds               |  |      | 5   | 
|                                                                             |  | 3.D.     |   | Risk Factors                                            |  |      | 5   | 
|                                                                             |  | Item 4.  |   | Information on the Company                              |  |      | 19  | 
|                                                                             |  | 4.A.     |   | History and Development of the Company                  |  |      | 19  | 
|                                                                             |  | 4.B.     |   | Business Overview                                       |  |      | 20  | 
|                                                                             |  | 4.C.     |   | Organizational Structure                                |  |      | 55  | 
|                                                                             |  | 4.D.     |   | Property, Plant and Equipment                           |  |      | 57  | 
|                                                                             |  | Item 4A. |   | Unresolved Staff Comments                               |  |      | 58  | 
|                                                                             |  | Item 5.  |   | Operating and Financial Review and Prospects            |  |      | 58  | 
|                                                                             |  | 5.A.     |   | Operating Results                                       |  |      | 67  | 
|                                                                             |  | 5.B.     |   | Liquidity and Capital Resources                         |  |      | 109 | 
|                                                                             |  | 5.C.     |   | Research, Development, Patents and Licenses             |  |      | 114 | 
|                                                                             |  | 5.D.     |   | Trend Information                                       |  |      | 114 | 
|                                                                             |  | 5.E.     |   | Off-Balance Sheet Arrangements                          |  |      | 114 | 
|                                                                             |  | 5.F.     |   | Tabular Disclosure of Contractual Obligations           |  |      | 115 | 
|                                                                             |  | 5.G.     |   | Safe Harbor                                             |  |      | 115 | 
|                                                                             |  | Item 6.  |   | Directors, Senior Management and Employees              |  |      | 115 | 
|                                                                             |  | 6.A.     |   | Directors and Senior Management                         |  |      | 115 | 
|                                                                             |  | 6.B.     |   | Compensation                                            |  |      | 123 | 
|                                                                             |  | 6.C.     |   | Board Practices                                         |  |      | 123 | 
|                                                                             |  | 6.D.     |   | Employees                                               |  |      | 127 | 
|                                                                             |  | 6.E.     |   | Share Ownership                                         |  |      | 128 | 
|                                                                             |  | Item 7.  |   | Major Shareholders and Related Party Transactions       |  |      | 130 | 
|                                                                             |  | 7.A.     |   | Major Shareholders                                      |  |      | 130 | 
|                                                                             |  | 7.B.     |   | Related Party Transactions                              |  |      | 131 | 
|                                                                             |  | 7.C.     |   | Interests of Experts and Counsel                        |  |      | 131 | 
|                                                                             |  | Item 8.  |   | Financial Information                                   |  |      | 131 | 
|                                                                             |  | 8.A.     |   | Consolidated Statements and Other Financial Information |  |      | 131 | 
|                                                                             |  | 8.B.     |   | Significant Changes                                     |  |      | 132 | 
|                                                                             |  | Item 9.  |   | The Offer and Listing                                   |  |      | 132 | 
|                                                                             |  | 9.A.     |   | Offer and Listing Details                               |  |      | 132 | 
|                                                                             |  | 9.B.     |   | Plan of Distribution                                    |  |      | 134 | 
|                                                                             |  | 9.C.     |   | Markets                                                 |  |      | 134 | 
|                                                                             |  | 9.D.     |   | Selling Shareholders                                    |  |      | 134 | 
|                                                                             |  | 9.E.     |   | Dilution                                                |  |      | 135 | 
|                                                                             |  | 9.F.     |   | Expenses of the Issue                                   |  |      | 135 | 
|                                                                             |  | Item 10. |   | Additional Information                                  |  |      | 135 | 
|                                                                             |  | 10.A.    |   | Share Capital                                           |  |      | 135 | 
|                                                                             |  | 10.B.    |   | Memorandum and Articles of Incorporation                |  |      | 135 | 
|                                                                             |  | 10.C.    |   | Material Contracts                                      |  |      | 145 | 
|                                                                             |  | 10.D.    |   | Exchange Controls                                       |  |      | 145 | 



i



---

##### Table of Contents

|                                           |  |           |     |                                                                              |  |      |     | 
|------------------------------------------ |  | --------- | --- | ---------------------------------------------------------------------------- |  | ---- | --- | 
|                                           |  |           |     |                                                                              |  | Page |    
|                                           |  | 10.E.     |     | Taxation                                                                     |  |      | 146 | 
|                                           |  | 10.F.     |     | Dividends and Paying Agents                                                  |  |      | 150 | 
|                                           |  | 10.G.     |     | Statement by Experts                                                         |  |      | 150 | 
|                                           |  | 10.H.     |     | Documents on Display                                                         |  |      | 151 | 
|                                           |  | 10.I.     |     | Subsidiary Information                                                       |  |      | 151 | 
|                                           |  | Item 11.  |     | Quantitative and Qualitative Disclosures about Credit, Market and Other Risk |  |      | 151 | 
|                                           |  | Item 12.  |     | Description of Securities other than Equity Securities                       |  |      | 164 | 
|                                           |  | 12.A.     |     | Debt Securities                                                              |  |      | 164 | 
|                                           |  | 12.B.     |     | Warrants and Rights                                                          |  |      | 164 | 
|                                           |  | 12.C.     |     | Other Securities                                                             |  |      | 164 | 
|                                           |  | 12.D.     |     | American Depositary Shares                                                   |  |      | 164 | 
|PART II                                    |  |           | 166 |                                                                             
|                                           |  | Item 13.  |     | Defaults, Dividend Arrearages and Delinquencies                              |  |      | 166 | 
|                                           |  | Item 14.  |     | Material Modifications to the Rights of Security Holders and Use of Proceeds |  |      | 166 | 
|                                           |  | Item 15.  |     | Controls and Procedures                                                      |  |      | 166 | 
|                                           |  | Item 16A. |     | Audit Committee Financial Expert                                             |  |      | 167 | 
|                                           |  | Item 16B. |     | Code of Ethics                                                               |  |      | 167 | 
|                                           |  | Item 16C. |     | Principal Accountant Fees and Services                                       |  |      | 168 | 
|                                           |  | Item 16D. |     | Exemptions from the Listing Standards for the Audit Committee                |  |      | 168 | 
|                                           |  | Item 16E. |     | Purchases of Equity Securities by the Issuer and Affiliated Purchasers       |  |      | 169 | 
|                                           |  | Item 16F. |     | Change in Registrants Certifying Accountant                                 |  |      | 169 | 
|                                           |  | Item 16G. |     | Corporate Governance                                                         |  |      | 169 | 
|                                           |  | Item 16H. |     | Mine Safety Disclosure                                                       |  |      | 171 | 
|PART III                                   |  |           | 172 |                                                                             
|                                           |  | Item 17.  |     | Financial Statements                                                         |  |      | 172 | 
|                                           |  | Item 18.  |     | Financial Statements                                                         |  |      | 172 | 
|                                           |  | Item 19.  |     | Exhibits                                                                     |  |      | 172 | 
|Signatures                                 |  |           | 173 |                                                                             
|Selected Statistical Data                  |  |           | A-1 |                                                                             
|Index to Consolidated Financial Statements |  |           | F-1 |                                                                             



ii



---

##### Table of Contents

CERTAIN DEFINED TERMS, CONVENTIONS AND

PRESENTATION OF FINANCIAL INFORMATION

As used in this annual report, unless the context otherwise requires, SMFG, the Company, we, us, our and similar terms refer to Sumitomo Mitsui
Financial Group, Inc. as well as to its subsidiaries, as the context requires. References to the Group are to us and our subsidiaries and affiliates taken as a whole. SMBC and the Bank refer to Sumitomo Mitsui
Banking Corporation or to Sumitomo Mitsui Banking Corporation and its subsidiaries taken as a whole, depending on the context. The Bank is our main subsidiary.

In this annual report, all of our financial information is presented on a consolidated basis, unless we state otherwise. As used in this annual report, IFRS means International Financial
Reporting Standards as issued by the International Accounting Standards Boards (IASB) and Japanese GAAP means accounting principles generally accepted in Japan. Our consolidated financial information in this annual report has
been prepared in accordance with IFRS, except for the risk-weighted capital ratios, the segment results of operation and some other specifically identified information, which are prepared in accordance with Japanese banking regulations or Japanese
GAAP. Unless otherwise stated or the context otherwise requires, all financial information contained in this annual report is expressed in Japanese yen.

Our fiscal year ends on March 31.

Unless otherwise specified or required by the
context: references to days are to calendar days; references to years are to calendar years and to fiscal years are to our fiscal years ending on March 31; references to $, dollars and
U.S. dollars are to United States dollars; references to euros and  are to the currency of those member states of the European Union which are participating in the European Economic and Monetary Union
pursuant to the Treaty on European Union; references to £ and British pounds sterling are to the currency of the United Kingdom; and references to yen and ¥ are to Japanese yen. Unless
otherwise specified, when converting currencies into yen we use our median exchange rates for buying and selling spot dollars, or other currencies, by telegraphic transfer against yen as determined at the end of the relevant fiscal period.

Unless otherwise indicated, in this annual report, where information is presented in millions, billions or trillions of yen
or thousands, millions or billions of dollars, amounts of less than one thousand, one million, one billion or one trillion, as the case may be, have been rounded. Accordingly, the total of figures presented in columns or otherwise may not equal the
total of the individual items. Except for capital ratios, which have been truncated, percentage data, unless we state otherwise have been subjected to rounding adjustments for the convenience of the reader.



1



---

##### Table of Contents

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This annual report contains statements that constitute forward-looking statements within the meaning of
Section 21E of the U.S. Securities Exchange Act of 1934, as amended (Securities Exchange Act of 1934). When included in this annual report, the words anticipate, believe, estimate, expect,
intend, may, plan, probability, risk, project, should, seek, target, will and similar expressions, among others, identify
forward-looking statements. You can also identify forward-looking statements in the discussions of strategy, plans or intentions. Such statements, which include, but are not limited to, statements contained in Item 3. Key
InformationRisk Factors, Item 5. Operating and Financial Review and Prospects and Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk, reflect our current views with respect
to future events and are inherently subject to risks, uncertainties and assumptions, including the risk factors described in this annual report. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described here as anticipated, believed, estimated, expected or intended.

The U.S. Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information to encourage companies to provide prospective information about themselves. We
rely on this safe harbor in making these forward-looking statements.

Forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors, and the differences may be material. Potential risks and uncertainties include, without
limitation, the following:



| |  |  | deterioration of Japanese and global economic conditions and financial markets;
| | - |  | -------------------------------------------------------------------------------



| |  |  | constraints on our operations due to capital adequacy requirements;
| | - |  | -------------------------------------------------------------------



| |  |  | declines in the value of our securities portfolio;
| | - |  | --------------------------------------------------



| |  |  | changes in the level or volatility of market rates or prices;
| | - |  | -------------------------------------------------------------



| |  |  | incurrence of significant credit-related costs;
| | - |  | -----------------------------------------------



| |  |  | a significant downgrade of our credit ratings;
| | - |  | ----------------------------------------------



| |  |  | our ability to successfully implement our business strategy through our subsidiaries, affiliates and alliance partners;
| | - |  | -----------------------------------------------------------------------------------------------------------------------



| |  |  | exposure to new risks as we expand the scope of our business;
| | - |  | -------------------------------------------------------------



| |  |  | the industry specific risks of the consumer finance industry;
| | - |  | -------------------------------------------------------------



| |  |  | the recoverability of deferred tax assets;
| | - |  | ------------------------------------------



| |  |  | litigation and regulatory proceedings;
| | - |  | --------------------------------------



| |  |  | insufficient liquidity;
| | - |  | -----------------------



| |  |  | problems of other financial institutions; and
| | - |  | ---------------------------------------------



| |  |  | adverse regulatory developments or changes in government policies.
| | - |  | ------------------------------------------------------------------

Given these and other risks and uncertainties, you should not place undue reliance on forward-looking statements, which speak only as of
the date of the filing of this annual report. We expressly disclaim any obligation to update or to announce publicly any revision to any of the forward-looking statements contained in this annual report to reflect any changes in events, conditions,
circumstances or other developments upon which any such statement is based. The information contained in this annual report identifies important factors in addition to those referred to above that could cause differences in our actual results.



2



---

##### Table of Contents

PART I



|Item 1. | Identity of Directors, Senior Management and Advisers
|------- | -----------------------------------------------------

Not applicable.



|Item 2. | Offer Statistics and Expected Timetable
|------- | ---------------------------------------

Not applicable.



|Item 3. | Key Information
|------- | ---------------

3.A.    SELECTED FINANCIAL DATA

Selected Financial Data

The following selected financial data at and for each of the five fiscal years ended March 31, 2016, 2015, 2014, 2013 and 2012 have been
derived from our consolidated financial statements. You should read this data together with Item 5. Operating and Financial Review and Prospects and our consolidated financial statements included elsewhere in this annual report.



|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|--------------------------------------------------------------------- |  | ------------------------------------------ | --------- |  | ---- | - | --------- | ---- |  | - | --------- | - |  | ---- | --------- |  |  | - | --------- | -
|                                                                      |  | For the fiscal year ended and at March 31, |          
|                                                                      |  | 2016                                       |           |  | 2015 |   |           | 2014 |  |   | 2013      |   |  | 2012 |          
|                                                                      |  | (In millions, except per share data)       |          
|Consolidated income statement data:                                   |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Interest income                                                       |  | ¥                                          | 1,872,584 |  |      | ¥ | 1,782,621 |      |  | ¥ | 1,714,044 |   |  | ¥    | 1,725,723 |  |  | ¥ | 1,710,331 |  
|Interest expense                                                      |  |                                            | 431,101   |  |      |   | 371,107   |      |  |   | 320,511   |   |  |      | 321,570   |  |  |   | 313,631   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Net interest income                                                   |  |                                            | 1,441,483 |  |      |   | 1,411,514 |      |  |   | 1,393,533 |   |  |      | 1,404,153 |  |  |   | 1,396,700 |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Fee and commission income                                             |  |                                            | 1,031,680 |  |      |   | 1,002,766 |      |  |   | 1,003,169 |   |  |      | 948,685   |  |  |   | 869,407   |  
|Fee and commission expense                                            |  |                                            | 131,381   |  |      |   | 129,253   |      |  |   | 127,959   |   |  |      | 127,054   |  |  |   | 132,562   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Net fee and commission income                                         |  |                                            | 900,299   |  |      |   | 873,513   |      |  |   | 875,210   |   |  |      | 821,631   |  |  |   | 736,845   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Net trading income                                                    |  |                                            | 462,682   |  |      |   | 127,759   |      |  |   | 135,218   |   |  |      | 105,302   |  |  |   | 182,296   |  
|Net income from financial assets at fair value through profit or loss |  |                                            | 12,260    |  |      |   | 22,678    |      |  |   | 58,586    |   |  |      | 15,794    |  |  |   | 33,734    |  
|Net investment income                                                 |  |                                            | 375,229   |  |      |   | 371,064   |      |  |   | 332,265   |   |  |      | 223,404   |  |  |   | 239,365   |  
|Other income                                                          |  |                                            | 496,273   |  |      |   | 525,905   |      |  |   | 429,541   |   |  |      | 324,403   |  |  |   | 245,563   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Total operating income                                                |  |                                            | 3,688,226 |  |      |   | 3,332,433 |      |  |   | 3,224,353 |   |  |      | 2,894,687 |  |  |   | 2,834,503 |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Impairment charges (reversals) on financial assets                    |  |                                            | 148,356   |  |      |   | 90,138    |      |  |   | (14,275   | ) |  |      | 270,145   |  |  |   | 284,310   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Net operating income                                                  |  |                                            | 3,539,870 |  |      |   | 3,242,295 |      |  |   | 3,238,628 |   |  |      | 2,624,542 |  |  |   | 2,550,193 |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|General and administrative expenses                                   |  |                                            | 1,706,263 |  |      |   | 1,621,897 |      |  |   | 1,522,990 |   |  |      | 1,447,116 |  |  |   | 1,374,540 |  
|Other expenses                                                        |  |                                            | 538,963   |  |      |   | 505,614   |      |  |   | 428,780   |   |  |      | 287,896   |  |  |   | 238,937   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Operating expenses                                                    |  |                                            | 2,245,226 |  |      |   | 2,127,511 |      |  |   | 1,951,770 |   |  |      | 1,735,012 |  |  |   | 1,613,477 |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Share of post-tax profit (loss) of associates and joint ventures      |  |                                            | 31,056    |  |      |   | 18,124    |      |  |   | 19,454    |   |  |      | 19,593    |  |  |   | (25,004   | )
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Profit before tax                                                     |  |                                            | 1,325,700 |  |      |   | 1,132,908 |      |  |   | 1,306,312 |   |  |      | 909,123   |  |  |   | 911,712   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Income tax expense                                                    |  |                                            | 372,878   |  |      |   | 409,947   |      |  |   | 414,076   |   |  |      | 255,300   |  |  |   | 460,779   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  
|Net profit                                                            |  | ¥                                          | 952,822   |  |      | ¥ | 722,961   |      |  | ¥ | 892,236   |   |  | ¥    | 653,823   |  |  | ¥ | 450,933   |  
|                                                                      |  |                                            |           |  |      |   |           |      |  |   |           |   |  |      |           |  |  |   |           |  



3



---

##### Table of Contents

|                                                                           |  |                                            |             |  |      |   |             |      |  |   |             |  |  |      |             |  |  |   |             | 
|-------------------------------------------------------------------------- |  | ------------------------------------------ | ----------- |  | ---- | - | ----------- | ---- |  | - | ----------- |  |  | ---- | ----------- |  |  | - | ----------- | 
|                                                                           |  | For the fiscal year ended and at March 31, |            
|                                                                           |  | 2016                                       |             |  | 2015 |   |             | 2014 |  |   | 2013        |  |  | 2012 |            
|                                                                           |  | (In millions, except per share data)       |            
|Profit attributable to:                                                    |  |                                            |             |  |      |   |             |      |  |   |             |  |  |      |             |  |  |   |             | 
|Shareholders of Sumitomo Mitsui Financial Group, Inc.                      |  | ¥                                          | 843,920     |  |      | ¥ | 614,070     |      |  | ¥ | 766,388     |  |  | ¥    | 535,976     |  |  | ¥ | 338,260     | 
|Non-controlling interests                                                  |  |                                            | 106,129     |  |      |   | 108,891     |      |  |   | 125,848     |  |  |      | 117,847     |  |  |   | 112,673     | 
|Other equity instruments holders                                           |  |                                            | 2,773       |  |      |   |            |      |  |   |            |  |  |      |            |  |  |   |            | 
|Earnings per share:                                                        |  |                                            |             |  |      |   |             |      |  |   |             |  |  |      |             |  |  |   |             | 
|Basic                                                                      |  | ¥                                          | 617         |  |      | ¥ | 449         |      |  | ¥ | 561         |  |  | ¥    | 396         |  |  | ¥ | 244         | 
|Diluted                                                                    |  |                                            | 617         |  |      |   | 449         |      |  |   | 561         |  |  |      | 395         |  |  |   | 243         | 
|Weighted average number of common shares in issue (in thousands of shares) |  |                                            | 1,367,229   |  |      |   | 1,367,258   |      |  |   | 1,366,186   |  |  |      | 1,353,926   |  |  |   | 1,387,405   | 
|Dividends per share in respect of each fiscal year:                        |  |                                            |             |  |      |   |             |      |  |   |             |  |  |      |             |  |  |   |             | 
|Common stock                                                               |  | ¥                                          | 155         |  |      | ¥ | 125         |      |  | ¥ | 125         |  |  | ¥    | 100         |  |  | ¥ | 100         | 
|                                                                           |  | $                                          | 1.38        |  |      | $ | 1.04        |      |  | $ | 1.22        |  |  | $    | 1.06        |  |  | $ | 1.22        | 
|Preferred stock (Type 6)(1)                                                |  | ¥                                          |            |  |      | ¥ |            |      |  | ¥ |            |  |  | ¥    |            |  |  | ¥ | 44,250      | 
|                                                                           |  | $                                          |            |  |      | $ |            |      |  | $ |            |  |  | $    |            |  |  | $ | 539         | 
|Consolidated statement of financial position data:                         |  |                                            |             |  |      |   |             |      |  |   |             |  |  |      |             |  |  |   |             | 
|Total assets                                                               |  | ¥                                          | 180,172,652 |  |      | ¥ | 179,181,466 |      |  | ¥ | 158,631,041 |  |  | ¥    | 147,770,475 |  |  | ¥ | 141,824,796 | 
|Loans and advances                                                         |  |                                            | 88,862,371  |  |      |   | 86,971,716  |      |  |   | 81,244,982  |  |  |      | 75,987,057  |  |  |   | 72,536,813  | 
|Total liabilities                                                          |  |                                            | 169,130,553 |  |      |   | 168,160,616 |      |  |   | 149,215,851 |  |  |      | 139,210,786 |  |  |   | 134,407,940 | 
|Deposits                                                                   |  |                                            | 125,940,797 |  |      |   | 115,833,980 |      |  |   | 108,370,494 |  |  |      | 101,021,413 |  |  |   | 92,853,566  | 
|Borrowings                                                                 |  |                                            | 9,914,129   |  |      |   | 11,217,052  |      |  |   | 8,463,363   |  |  |      | 6,475,543   |  |  |   | 10,412,858  | 
|Debt securities in issue                                                   |  |                                            | 10,829,612  |  |      |   | 11,051,431  |      |  |   | 8,769,094   |  |  |      | 7,950,020   |  |  |   | 7,377,742   | 
|Total equity                                                               |  |                                            | 11,042,099  |  |      |   | 11,020,850  |      |  |   | 9,415,190   |  |  |      | 8,559,689   |  |  |   | 7,416,856   | 
|Capital stock                                                              |  |                                            | 2,337,896   |  |      |   | 2,337,896   |      |  |   | 2,337,896   |  |  |      | 2,337,896   |  |  |   | 2,337,896   | 



|(1) | On April 1, 2011, we acquired and cancelled all of the outstanding Type 6 preferred stock.
|--- | ------------------------------------------------------------------------------------------



4



---

##### Table of Contents

Exchange Rates

We maintain our accounts in yen. The following table sets forth for the indicated periods the median exchange rates for buying and selling spot dollars by telegraphic transfer against yen as determined by
the Bank, expressed in Japanese yen per $1.00.



|                             |  |                  |        |  |     |   |        |            |  |   |            |  |  |   |        | 
|---------------------------- |  | ---------------- | ------ |  | --- | - | ------ | ---------- |  | - | ---------- |  |  | - | ------ | 
|                             |  | High             |        |  | Low |   |        | Period end |  |   | Average(1) | 
|                             |  | (Yen per dollar) |       
|Fiscal year ended March 31,  |  |                  |        |  |     |   |        |            |  |   |            |  |  |   |        | 
|2012                         |  | ¥                | 85.47  |  |     | ¥ | 75.99  |            |  | ¥ | 82.13      |  |  | ¥ | 78.98  | 
|2013                         |  |                  | 96.45  |  |     |   | 77.57  |            |  |   | 94.01      |  |  |   | 83.31  | 
|2014                         |  |                  | 105.37 |  |     |   | 92.91  |            |  |   | 102.88     |  |  |   | 100.47 | 
|2015                         |  |                  | 121.59 |  |     |   | 101.25 |            |  |   | 120.15     |  |  |   | 110.61 | 
|2016                         |  |                  | 125.51 |  |     |   | 111.17 |            |  |   | 112.62     |  |  |   | 120.12 | 
|Most recent six months:      |  |                  |        |  |     |   |        |            |  |   |            |  |  |   |        | 
|December                     |  |                  | 123.30 |  |     |   | 120.21 |            |  |   | 120.53     |  |  |   | 121.86 | 
|January                      |  |                  | 120.81 |  |     |   | 117.05 |            |  |   | 120.81     |  |  |   | 118.34 | 
|February                     |  |                  | 121.17 |  |     |   | 111.98 |            |  |   | 113.61     |  |  |   | 115.08 | 
|March                        |  |                  | 113.96 |  |     |   | 111.17 |            |  |   | 112.62     |  |  |   | 113.03 | 
|April                        |  |                  | 112.39 |  |     |   | 107.99 |            |  |   | 109.77     |  |  |   | 109.84 | 
|May                          |  |                  | 110.94 |  |     |   | 106.46 |            |  |   | 110.94     |  |  |   | 109.13 | 
|June (through June 15, 2016) |  |                  | 110.64 |  |     |   | 106.06 |            |  |   | 106.06     |  |  |   | 107.50 | 



|(1) | Average exchange rates have been calculated by using the average of the exchange rates on the last day of each month during a fiscal year, except for the monthly
average rates, which represent the averages of the exchange rates for each day of the relevant months.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The
median exchange rate quotation by the Bank for buying and selling spot dollars by telegraphic transfer against yen on June 15, 2016 was ¥106.06 = $1.00.

These exchange rates are reference rates and are neither necessarily the rates used to calculate ratios nor the rates used to convert dollars to yen in the consolidated financial statements included
elsewhere in this annual report.

3.B.    CAPITALIZATION AND INDEBTEDNESS

Not applicable.

3.C.    REASONS FOR THE OFFER AND USE OF PROCEEDS

Not applicable.

3.D.    RISK
FACTORS

Investing in our securities involves risks. You should carefully consider the risks described below as well as
all the other information in this annual report, including, but not limited to, our consolidated financial statements and related notes included elsewhere in this annual report and Item 11. Quantitative and Qualitative Disclosures about
Credit, Market and Other Risk. Our business, operating results and financial condition could be adversely affected by any factors, including, but not limited to, those discussed below. The trading prices of our securities could also decline
due to any of these factors including, but not limited to, those discussed below. Moreover, this annual report contains forward-looking statements that involve risks and uncertainties. Our actual results could also differ from those anticipated in
these forward-looking statements as a result of various factors, including, but not limited to, the risks faced by us described below and elsewhere in this annual report. See Cautionary Statement Regarding Forward-Looking Statements.
Forward-looking statements in this section are made only as of the filing date of this annual report.



5



---

##### Table of Contents

Risks Related to the Economic and Financial Environment

We may be adversely affected if Japanese and global economic conditions and financial markets deteriorate.

Our financial condition and results of operations are materially affected by general economic conditions and financial markets in Japan
and foreign countries, which would be influenced by the changes of various factors. These include fiscal and monetary policies, and laws, regulations and policies on financial markets. Those factors include, for example, the Japanese consumption tax
rate. The Japanese consumption tax rate increased from 5% to 8% in April 2014 and was scheduled to further increase to 10% in April 2017. However, Japans Prime Minister announced in June 2016 that the increase in the consumption tax rate to
10% would be postponed until October 2019. In order to proceed with the postponement, the Consumption Tax Act and related laws must be amended. Furthermore, geopolitical instability in various parts of the world, including North Africa, the Middle
East, Asia and Eastern Europe and material changes in regional economic or political unions or associations between countries, including, for example, the United Kingdoms potential exit from the European Union as a result of the referendum
held on June 23, 2016, could also contribute to economic instability in those and other regions, which could adversely affect Japanese and global economic conditions.

The deterioration of Japanese and global economic conditions, or financial market turmoil, could result in a worsening of our liquidity and capital conditions, an increase in our credit costs, and an
increase in impairment of our investment securities and, as a result, adversely affect our business, financial condition and results of operations.

Risks Related to Our Business

Failure to satisfy capital adequacy
requirements could constrain our and the Banks operations.

We and the Bank are subject to capital adequacy
requirements established by the Financial Services Agency of Japan (FSA). The current requirements reflect the principal risk-weighted capital measures of the Basel III rules text published by the Basel Committee on Banking Supervision
(BCBS) in December 2010 and are being phased in from March 2013 to March 2019. Compared to the previous requirements, the current requirements increase both the quality and quantity of the risk-weighted capital base.

With respect to the quality of the capital base, certain capital instruments, including existing preferred securities and subordinated
debt, are eligible for inclusion as Tier 1 capital or Tier 2 capital only for the phase-out period. Preferred stocks convertible into common stocks no longer qualify as Common Equity Tier 1 capital but would qualify as Additional Tier 1 capital if
they satisfy certain requirements including the requirement of loss absorbency at the point of non-viability under the Basel III rules. In addition, securities with step-up clauses will no longer qualify as Additional Tier 1 capital, and if the
relevant security is classified as a liability for accounting purposes, it must satisfy the requirement of loss absorbency at a pre-specified trigger point, which must be 5.125% or more of Common Equity Tier 1 risk-weighted capital ratio as well as
the aforementioned requirement of loss absorbency at the point of non-viability to qualify as Additional Tier 1 capital. With respect to Tier 2 capital, under the Basel III rules, the relevant security must satisfy the requirement of loss absorbency
at the point of non-viability to qualify as Tier 2 capital, and subordinated debt securities callable at the initiative of the issuer within five years or with step-up clauses can no longer qualify as Tier 2 capital.

With respect to the quantity of the capital base, the minimum Common Equity Tier 1 risk-weighted capital ratios applicable to us and the
Bank have been 4.5% since March 2015. Moreover, we are required to hold a capital conservation buffer to withstand future periods of stress and a countercyclical buffer as additional capital to reduce the buildup of systemic risk in periods and
locations of excessive credit growth. The capital conservation buffer is being phased in from March 2016, with the current ratio of 0.625% reaching 2.5% by March 2019. As a result, the total minimum Common Equity Tier 1 risk-weighted capital ratio
will be increased to 7%, and the total minimum risk-weighted capital ratio will be increased to 10.5% in March 2019. The countercyclical buffer, which is being phased in from March 2016, is calculated as the weighted average of the buffers in effect
in the jurisdictions to which we have credit exposure, with a maximum of 2.5% when fully implemented in March 2019.



6



---

##### Table of Contents

In addition, in November 2014 and 2015, we and other organizations were identified by the
Financial Stability Board (FSB) as Global Systemically Important Financial Institutions (G-SIFIs). The list of G-SIFIs is updated each year in November, and the requirements for additional capital, in the form of a capital
surcharge above the Basel III minimum requirement, have been applied from 2016, initially to those financial institutions identified in November 2014 as G-SIFIs. This requirement is commonly referred to as the G-SIFI capital surcharge. Based on the
list, we will be required to maintain an additional 1% of Common Equity Tier 1 capital as a percentage of risk-weighted assets when the requirement is fully applied from 2019. Under the phase-in requirements, we are currently required to maintain
0.25% of Common Equity Tier 1 capital as a percentage of risk-weighted assets. G-SIFIs will also be subject to a global standard for Total Loss-Absorbing Capacity (TLAC), which defines certain minimum requirements for total
loss-absorbing capacity so that if G-SIFIs fail, they will have sufficient loss absorbing and recapitalization capacity available in resolution. In November 2015, the FSB published the final TLAC standard. As a G-SIFI, we will be subject to the
final TLAC standard, as implemented in Japan.

At March 31, 2016, on a consolidated basis, our total risk-weighted capital
ratio, Tier 1 risk-weighted capital ratio and Common Equity Tier 1 risk-weighted capital ratio were 17.02%, 13.68% and 11.81%, compared to the minimum required ratios of 8.875%, 6.875% and 5.375%, respectively. All the minimum required ratios stated
above include the capital conservation buffer of 0.625% and the G-SIFI capital surcharge of 0.25%, but exclude the countercyclical buffer requirements.

Our and the Banks capital ratios could decline as a result of decreases in Tier 1 and Tier 2 capital or increases in risk-weighted assets. The following circumstances, among others, could reduce our
risk-weighted capital ratio and that of the Bank:



| |  |  | declines in the value of securities;
| | - |  | ------------------------------------



| |  |  | inability to refinance subordinated debt obligations or preferred securities with those qualified as regulatory capital under the new capital adequacy
requirements which phased in from March 2013; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | increases in risk-weighted assets resulting from business growth, strategic investments, borrower downgrades or changes in parameters such as
probability of default (PD).
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We and the Bank have adopted the advanced internal rating-based
(IRB) approach for measuring exposure to credit risk and the advanced measurement approach (AMA) to measure exposure to operational risk. If the FSA revokes its approval of such implementation or otherwise changes its
approach to measure capital adequacy ratios, our and the Banks ability to maintain capital at the required levels may be adversely affected.

If our capital ratios fall below required levels, the FSA may require us to take a variety of corrective actions, including withdrawal from all international operations or suspension of all or part of our
and the Banks operations, which may indirectly affect our or the Banks ability to fulfill our and the Banks contractual obligations or may result in restrictions on our and the Banks businesses. Failure to maintain capital
levels under the capital buffer requirements under Basel III and the requirement for the G-SIFI capital surcharge will result in restrictions on capital distributions, such as dividends, share buybacks, discretionary payments on other Tier 1 capital
instruments and bonuses. In addition, some of the Banks domestic and overseas subsidiaries are also subject to local capital ratio requirements. Failure of those subsidiaries to meet local requirements may result in administrative actions or
sanctions imposed by local regulatory authorities.

Future declines of securities prices on Japanese stock markets or
other global markets could cause us to experience impairment losses and unrealized losses on our equity securities portfolio, which could negatively affect our financial condition, results of operations and regulatory capital position.

The reported value of our available-for-sale equity instruments accounted for 2.9% of our total assets at March 31,
2016, approximately 89.0% of which were Japanese equity securities. This value depends mainly on



7



---

##### Table of Contents

prices of the instruments in the stock market. In addition, the reported value, gross unrealized gains and losses, and cost of those available-for-sale equity instruments at March 31, 2016 are
described in Item 5.A. Operating ResultsInvestment Securities.

A listed equity security is impaired
primarily based on its market price. If we conclude that a particular security is impaired, we calculate the impairment loss based on the market price of that security at the end of the relevant period. Declines in the Japanese stock markets or
other global markets could result in further losses from impairment of the securities in our equity securities portfolio or sales of these securities, adversely affecting our results of operations and financial condition.

Our regulatory capital position and that of the Bank depend in part on the fair value of our equity securities portfolio. Substantial
declines in the Japanese stock markets or other global markets would negatively affect our and the Banks capital positions, and limit the Banks ability to make distributions to us.

We will further reduce our holdings of equity securities in order to reduce financial risks. Any disposal by us of equity holdings of our
customers shares could adversely affect our relationships with those customers.

Changes in the levels or
volatility of market rates or prices could adversely affect our financial condition and results of operations.

We
engage in trading and investing activities dealing with various kinds of financial instruments such as bonds, equities, currencies, derivatives and funds. For example, we have substantial investments in debt securities. At March 31, 2016, we had
¥7 trillion of Japanese government bonds classified as available-for-sale financial assets, which accounted for approximately 3.6% of our total assets.

Our financial condition and results of operations could be adversely affected by actual changes or volatility in interest rates, foreign exchange rates and market prices of other investment securities.
Increases in interest rates could substantially decrease the value of our fixed income portfolio, and any unexpected changes in yield curves could adversely affect the value of our bond and interest rate derivative positions, resulting in
lower-than-expected revenues from trading and investment activities. Market volatility may also result in significant unrealized losses or impairment losses on such instruments. Furthermore, the downgrading of investment securities by credit rating
agencies may also cause declines in the value of our securities portfolio.

Adverse economic conditions and
deterioration of the financial conditions of our customers could increase our credit costs.

Our non-performing loans
(NPLs) and credit costs for corporate and individual customers may increase significantly if:



| |  |  | domestic or global economic conditions worsen or do not improve;
| | - |  | ----------------------------------------------------------------



| |  |  | our customers do not repay their loans, due to reasons including deterioration of their financial conditions; and
| | - |  | -----------------------------------------------------------------------------------------------------------------



| |  |  | the value of collateral declines.
| | - |  | ---------------------------------

We have substantial exposure to corporate customers in the following sectors: real estate and goods rental and leasing, manufacturing, wholesale and retail, transportation, communications and public
enterprises, and services, including electric utilities, and to individual customers mainly through housing loans. The financial conditions of those customers may be subject to changes in the industry-specific economic conditions, including, for
example, fluctuations in oil and gas and other natural resource prices, as well as general economic conditions. In addition, adverse region-specific economic conditions could worsen our customers financial conditions or could decrease the
value of our collateral provided to us in such regions. As a result, we may be required to record increases in our allowance for loan losses.



8



---

##### Table of Contents

Moreover, for certain borrowers, we may choose to engage in debt-for-equity swaps or provide
partial debt write-offs, additional financing or other forms of assistance as an alternative to exercising our full legal rights as a creditor if we believe that doing so may increase our ultimate recoverable amount of the loan. We may be required
to, or choose to, provide new or additional financing to customers who may incur unexpected liabilities, have difficulty in the future in continuing operations, encounter difficulties or need to devote significant resources to repair their
infrastructures, as a result of natural disasters or other calamities.

In addition, changes in laws or government policies
may have an adverse impact on the rights of creditors. For example, the Government of Japan has provided or may provide in the future government guarantees and other government support measures in response to the financial crisis or other unexpected
incidents such as the Great East Japan Earthquake of March 2011 and collateral events. Even if our current or future loans to borrowers have received or will receive any government support measures, it is unclear to what extent those loans will
benefit, directly or indirectly, from the current or any future government guarantees or support measures.

In addition, our
NPLs may increase and there may be additional credit costs if we fail to accurately estimate the incurred losses in our loan portfolio. These estimates require difficult, subjective and complex judgments such as credit evaluation of our borrowers,
valuation of collateral and forecasts of economic conditions.

The ratio of impaired loans and advances to the total loans and
advances, both net of allowance for loan losses, were 0.8%, 1.0% and 1.3% at March 31, 2016, 2015 and 2014, respectively. For further information, see Item 5.A. Operating ResultsLoans and Advances.

A significant downgrade of our credit ratings could have a negative effect on us.

At the date of this annual report, SMFG has the long-term senior unsecured rating of A1 from Moodys Japan K.K.,
(Moodys), the issuer credit rating of A- from Standard & Poors Ratings Japan K.K., (S&P) and the foreign and local currency issuer default ratings of A/F1 from Fitch Ratings Japan Limited
(Fitch). There can be no assurance that these ratings will be maintained.

A material downgrade of our credit
ratings may have various effects including, but not limited to, the following:



| |  |  | we may have to accept less favorable terms in our transactions with counterparties, including capital raising activities, or may be unable to enter
into certain transactions;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | foreign regulatory bodies may impose restrictions on our overseas operations;
| | - |  | -----------------------------------------------------------------------------



| |  |  | existing agreements or transactions may be cancelled; and
| | - |  | ---------------------------------------------------------



| |  |  | we may be required to provide additional collateral in connection with derivatives transactions.
| | - |  | ------------------------------------------------------------------------------------------------

Any of these or other effects of a downgrade of our credit ratings could have a negative impact on the profitability of our treasury and
other operations, and could adversely affect our regulatory capital position, liquidity position, financial condition and results of operations. For more information about our credit ratings, see Item 5.B. Liquidity and Capital
Resources.

We face significant challenges in achieving the goals of our business strategy, and our business may
not be successful.

In May 2014, we and the Bank announced a new medium-term management plan through March 2017. We
believe that we have targeted appropriate business areas. However, our initiatives to offer new products and services and to increase sales of our existing products and services may not succeed, if market conditions do not stabilize, market
opportunities develop more slowly than expected, our initiatives have less potential than we



9



---

##### Table of Contents

envisioned originally or the profitability of these products and services is undermined by competitive pressures. Consequently, we may be unable to achieve or maintain profitability in our
targeted business areas.

In order to implement our business strategy successfully, we need to hire and train qualified
personnel continuously and in a proactive manner, as well as to attract and retain employees with professional experience and specialized product knowledge. However, we face competition from other commercial banks, investment banks, consumer finance
companies and other financial services providers in hiring highly competent employees. There can be no assurance that we will succeed in attracting, integrating and retaining appropriately qualified personnel.

We are exposed to new risks as we expand our businesses, the range of our products and services, and geographic scope of our
businesses overseas.

As part of our business strategies we have expanded and may continue to expand our businesses or
our range of products and services beyond our core business, commercial banking. This could expose us to new risks, such as adverse regulatory changes, more competition or deterioration in the operating environments that affect those businesses,
products and services. Some of those risks could be types with which we have no or only limited experience. As a result, our risk management systems may prove to be insufficient and may not be effective in all cases or to the degree required.

In accordance with our strategy to further increase our presence in the international financial markets, we may continue to
expand the scale of our overseas businesses, especially in emerging economies, notably Asian countries and regions. The expansion of our overseas businesses may further increase our exposure to risks of adverse developments in foreign economies and
markets, including interest rate and foreign exchange rate risk, regulatory risk and political risk. Our overseas expansion also exposes us to the compliance risks and the credit and market risks specific to the countries and regions in which we
operate, including the risk of deteriorating conditions in the credit profile of overseas borrowers.

Failure of our
business strategies through our subsidiaries, affiliates and other business alliance partners could negatively affect our financial condition and results of operations, including impairment losses on goodwill or investments.

Aligned with our business strategies, we have made and may undertake acquisition of a subsidiary, investments in affiliates and other
business alliance partners, and reorganization within our Group companies. It is uncertain whether we will receive the expected benefits from those business strategies, due to any adverse regulatory changes, worsening of economic conditions,
increased competition or other factors that may negatively affect the related business activities. Furthermore, unanticipated costs and liabilities may be incurred in connection with those business strategies, including liabilities from the claims
related to the businesses prior to our business alliances, and cost from actions by regulatory authorities.

When we acquire a
subsidiary, we may recognize goodwill and intangible assets. Impairment losses on goodwill or intangible assets in connection with acquisitions must be recognized when the recoverable amount of goodwill or intangible assets of the business is lower
than the carrying amount at the time of impairment testing, which is performed annually or whenever there is an indication that the goodwill or intangible assets may be impaired.

We account for some of our investments in affiliates under the equity method. Therefore, net losses incurred by equity method investees
may cause us to record our share of the net losses. Furthermore, we may lose the capital which we have invested in business alliances or may incur impairment losses on securities acquired in such alliances. We may also be required under contractual
or other arrangements to provide financial support, including credit support and equity investments, to business alliance partners in the future. Additionally, we may also incur credit costs from our credit exposure to such partners.



10



---

##### Table of Contents

We are exposed to the industry specific risks of the consumer finance industry.

Changes in the legal environment have severely and adversely affected the business performance of consumer lending and
credit card companies. We have exposures to the risks specific to the consumer finance industry through our subsidiaries, including Cedyna Financial Corporation (Cedyna) and SMBC Consumer Finance Co., Ltd. (SMBC Consumer
Finance).

Consumer lending and credit card companies had offered unsecured personal loans, which included loans with
so-called gray zone interest in excess of the maximum rate prescribed by the Interest Rate Restriction Act (ranging from 15% to 20%) up to the 29.2% maximum rate permitted under the Act Regulating the Receipt of Contributions, Receipt of
Deposits and Interest Rates (Contributions Act). However, amendments to laws regulating moneylenders, which increased the authority of government regulators, prohibited gray zone interest and introduced an upper limit on aggregate credit
extensions to an individual by moneylenders at one-third of the borrowers annual income, were promulgated in 2006 and became fully effective in June 2010. After the promulgation of such amendments, Cedyna, SMBC Consumer Finance and other
companies engaged in related business reduced their interest rates on loans in preparation for the prohibition of gray zone interest. As a consequence, margins earned by those companies, as well as the amounts of loans extended, decreased.

In addition, as a result of court decisions unfavorable to those companies, claims for refunds of amounts paid in excess of
the applicable maximum allowed rate by the Interest Rate Restriction Act have increased substantially. Although Cedyna, SMBC Consumer Finance and other subsidiaries have each recorded a provision for claims for refunds of gray zone interest on
loans, we may be required to recognize additional losses if such provisions are determined to be insufficient, and the additional losses could have an adverse effect on our results of operations and financial condition.

Inability to generate sufficient future taxable profits or adverse changes to tax laws, regulatory requirements or accounting
standards could have a negative impact on the recoverability of certain deferred tax assets.

We recognize deferred tax
assets relating to tax losses carried forward and deductible temporary differences only to the extent that it is probable that future taxable profit will be available against which the tax losses carried forward and the temporary differences can be
utilized. The deferred tax assets are quantified on the basis of currently enacted tax rates and accounting standards and are subject to change as a result of future changes to tax laws or the rules for computing taxable profits and allowable
losses. Failure to generate sufficient future taxable profits or changes in tax laws or accounting standards may reduce our estimated recoverable amount of net deferred tax assets. Such a reduction could have an adverse effect on our financial
condition and results of operations.

Declines in returns on our plan assets or revised actuarial assumptions for
retirement benefits may adversely affect our financial condition and results of operations.

The Bank and some of our
other subsidiaries have various defined benefit plans. We have experienced in the past, and may experience in the future, declines in returns on plan assets and changes in the discount rates and other actuarial assumptions. If returns on plan assets
decrease, or if we revise the discount rates and other assumptions, the deficit of the impacted defined benefit plan may increase and adversely affect our financial condition and results of operations. Because more than half of our plan assets are
composed of equity instruments, the plan assets are greatly affected by volatility in the prices of equity securities. Substantial declines in the prices for publicly traded Japanese stocks would negatively affect our plan assets. For further
information, see Note 23 Retirement Benefits to our consolidated financial statements included elsewhere in this annual report.



11



---

##### Table of Contents

Our business relies on our information technology systems, and their failure could
harm our relationships with customers or adversely affect our provision of services to customers.

In all aspects of
our business, we use information technology systems to deliver services to and execute transactions on behalf of our customers as well as for back-office operations. We therefore depend on the capacity and reliability of the electronic and
information technology systems supporting our operations. We may encounter service disruptions in the future, owing to failures of these information technology systems. Our information technology systems are subject to damage or incapacitation as a
result of quality problems, human errors, natural disasters, power losses, sabotage, computer viruses, acts of terrorism, cyber attacks and similar events. While we have taken steps to protect information technology systems from those risks,
including by establishing data recovery capability and functionality, these measures may not be sufficient. In addition, we may not be prepared to address all contingencies that could arise in the event of a major disruption of services. The failure
to address such contingencies could harm our relationships with customers or adversely affect our provision of services to customers.

We handle personal information obtained from our individual and corporate customers in relation to our banking, securities, consumer lending, credit card and other businesses. The systems we have
implemented to protect the confidentiality of personal information, including those designed to meet the strict requirements of the Act on the Protection of Personal Information, may not be effective in preventing disclosure of personal information
by unauthorized access from a third party. Leakage of personal information could expose us to demands for compensation or lawsuits for ensuing economic losses or emotional distress, administrative actions or sanctions, additional expenses associated
with making necessary changes to our systems and reputational harm. As a result, our business, financial condition and results of operations could be materially and adversely affected.

Our risk management policies and procedures may not adequately address unidentified or unanticipated risks.

We are exposed to a variety of operational, legal and regulatory risks throughout our organization. Management of these risks requires,
among other things, policies and procedures to properly record and verify large numbers of transactions and events. However, these policies and procedures may not be fully effective or sufficient. We have devoted significant resources to
strengthening our risk management policies and procedures and expect to continue doing so in the future. Nevertheless, particularly in light of the continuing evolution of our operations and expansion into new areas, our policies and procedures
designed to identify, monitor and manage risks may not be fully effective. Some of our methods of managing risks are based upon our use of observed historical market behavior and thus may not accurately predict future risks. Violations of laws
including the Japanese antitrust and fair trade laws by us or by the Bank may result in administrative sanctions. Furthermore, investigations, administrative actions or litigation could commence in relation to violations, which may involve costs and
may result in deterioration of our reputation.

Fraud, misconduct or other unlawful behavior by directors, officers and
employees or third parties could subject us to losses and regulatory sanctions.

We are exposed to potential losses
resulting from fraud, misconduct and other unlawful behavior by directors, officers and employees. Directors, officers and employees may bind us to transactions that exceed authorized limits or present unacceptable risks, hide from us and from our
customers unauthorized activities, improperly use confidential information or otherwise abuse customer confidences. Third parties may engage in fraudulent activities, including fraudulent use of bank accounts or the use of false identities to open
accounts for money laundering, tax evasion or other illegal purposes. Third parties could also use stolen or forged ATM cards, engage in credit card fraud or transfer funds illegally through online banking fraud, and we may be required to indemnify
victims of such fraud for related losses. In the broad range of businesses in which we engage, fraud, misconduct and other unlawful behavior are difficult to prevent or detect. In addition, with or without actual



12



---

##### Table of Contents

fraud, misconduct and other unlawful behavior by directors, officers and employees, investigations, administrative actions or litigation could commence in relation to them. Furthermore, we may
not be able to recover the losses caused by these activities, including possible deterioration of our reputation.

Transactions involving Iran and other countries designated by the U.S. Department of State as state sponsors of terrorism or
targets that are subject to other U.S. economic sanctions may lead some potential customers and investors to avoid doing business with us or investing in our securities or may limit our business operations.

U.S. law generally prohibits or substantially restricts U.S. persons from doing business with countries designated by the U.S. Department
of State as state sponsors of terrorism (Designated Countries), which currently are Iran, Sudan and Syria. Under U.S. law, there are similar prohibitions or restrictions on dealings with countries, a region and persons that are the
subject of other U.S. economic sanctions administered by the U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) or other agencies (collectively with the Designated Countries, the Restricted
Targets).

We maintain a Group-wide policy designed to ensure compliance with applicable U.S. laws and regulations. This
policy, which covers the Bank and our banking subsidiaries that provide financial services globally, prohibits the new extension of credit to Iranian entities. Our non-U.S. offices engage in transactions relating to the Restricted Targets on a
limited basis and in compliance with applicable laws and regulations. These activities include remittance of Japanese yen with respect to our customers export or import transactions, maintenance of correspondent banking accounts with Iranian
banks, including the Central Bank of Iran, and the payment of fees in Japanese yen to certain Iranian banks in connection with performance bonds issued in the past by the Bank through these Iranian banks related to our customers projects in
Iran. The performance bonds expired and have not been renewed, but the Bank continues to be obligated to pay certain fees to the Iranian banks. In addition, we maintain a representative office in Iran that mainly performs an information-collecting
function.

We do not believe that our operations relating to the Restricted Targets materially affect our business, financial
condition or results of operations. A limited number of potential violations of U.S. economic sanctions by the Bank were identified and voluntarily disclosed to OFAC. These transactions resulted from inadvertent operational errors or the lack of
familiarity of some personnel of the Bank with the requirements of the relevant regulations in the past, or from the inherent limitation on information about underlying transactions that can be obtained in the course of normal banking operations.
Since the discovery of these potential violations we have further strengthened our Group-wide OFAC compliance program in an effort to prevent the recurrence of such potential violations. We settled some of the voluntarily disclosed potential
violations with OFAC while others remain unsettled. However, in light of the inadvertent nature of such potential violations and the degree to which our strengthened OFAC compliance program aims to mitigate the risk of potential violations, we do
not believe that our settlement with OFAC, or any possible penalties that OFAC may impose with respect to the other potential violations that remain unsettled, will have a material impact on our reputation, financial condition or results of
operations, or on the prices of our securities.

We are aware of initiatives by U.S. states and U.S. institutional investors,
such as pension funds, to adopt laws, regulations or policies prohibiting transactions with or investment in, or requiring divestment from, entities engaged in certain business with Iran and other Designated Countries. It is possible that such laws
and initiatives may result in our inability to enter into transactions with those entities that are subject to such prohibitions or to retain or acquire such entities as customers or investors in our securities.

In recent years, the U.S. government implemented a number of sanctions targeting non-U.S. persons for activities undertaken outside the
United States (secondary sanctions) that involve specific sanctions targets or certain activities including, among other things, certain transactions related to Irans energy, petrochemical, shipping or shipbuilding sectors.
Pursuant to the July 14, 2015 Joint Comprehensive Plan of Action (JCPOA) agreed to by the five permanent members of the United Nations Security Council plus Germany (the P5+1) and



13



---

##### Table of Contents

Iran, with the European Union, on January 16, 2016 (Implementation Day), the United States lifted U.S. nuclear-related secondary sanctions targeting Iran. Even after
Implementation Day, certain secondary sanctions remain in effect, including those targeting significant transactions involving Iranian or Iran-related Specially Designated Nationals and Blocked Persons (SDNs). In accordance with
applicable laws and regulations, the Bank intends to provide certain services, including settlement services in connection with customers trade transactions between Japan and Iran, to the extent that such activities are not targeted by
remaining secondary sanctions. For more details of relevant laws and regulations, see Item 4.B. Business OverviewRegulations in the United StatesLaws Prohibiting Money Laundering and Terrorist Financing.

In addition, the U.S. government has enacted a series of Ukraine-related sanctions, including those under the Ukraine-Related Sanctions
Regulations, the Ukraine Freedom Support Act of 2014 and sectoral sanctions on the financial, energy and defense sectors of the Russian economy.

The laws, regulations and sanctions referenced above or similar legislative or regulatory developments may further limit our business operations. If we were determined to have engaged in activities
targeted by certain U.S. statutes, Executive Orders or regulations, we could lose our ability to open or maintain correspondent or payable-through accounts with U.S. financial institutions, among other potential sanctions. In addition,
depending on sociopolitical developments, even though we take measures designed to ensure compliance with applicable laws and regulations, our reputation may suffer due to our association with the Restricted Targets. The above circumstances could
have a significant adverse effect on our business or the prices of our securities.

Our business could be adversely
affected by litigation and regulatory proceedings globally.

We conduct business in many locations in and outside of
Japan. We face the risk of litigation and regulatory proceedings in connection with our operations. For example, if we engage in activities targeted by certain U.S. sanctions, this could result in the imposition of monetary penalties or other
restrictions by the U.S. government against us. Lawsuits and regulatory actions may result in penalties or settlements of very large indeterminate amounts or limit our operations, and costs to defend either could be substantial. Moreover, the
Bank and one of its subsidiaries contribute to financial benchmarks such as the Tokyo Interbank Offered Rate (TIBOR) and the London Interbank Offered Rate (LIBOR) for certain specific currencies. These benchmarks are widely
referenced in jurisdictions in which we operate and do not operate. We face or may face some investigations, litigation and regulatory proceedings, and an adverse regulatory decision, judgment or ruling, including in jurisdictions we do not operate
in, could have a material adverse effect on our business, results of operations and financial condition.

Risks Related to Our Industry

Our liquidity could be adversely affected by actual or perceived weaknesses in our businesses and by factors we
cannot control, such as a general decline in the level of business activity in the financial services sector.

We need
liquidity to maintain our lending activities, meet deposit withdrawals, pay our operating expenses and pay interest on and principal of debt and dividends on capital stock. Adverse market and economic conditions in the domestic and global economies
may limit or adversely affect our access to liquidity required to operate our business. If our counterparties or the markets are reluctant to finance our operations due to factors including actual or perceived weaknesses in our businesses as a
result of large losses, changes in our credit ratings, or a general decline in the level of business activity in the financial services sector, we may be unable to meet our payment obligations when they become due or only be able to meet them with
funding obtained on unfavorable terms. Circumstances unrelated to our businesses and outside of our control, such as, but not limited to, adverse economic conditions, disruptions in the financial markets or negative developments concerning other
financial institutions perceived to be comparable to us, may also limit or adversely affect our ability to replace maturing liabilities in a timely manner. Without sufficient liquidity, we will be forced to curtail our operations, which could
adversely affect our business, results of operations and financial condition.



14



---

##### Table of Contents

We may incur losses as a result of financial difficulties of counterparties and other
financial institutions.

We regularly execute transactions with counterparties in the financial services industry. Many
of these transactions expose us to credit risk in the event of deterioration of creditworthiness of a counterparty or client. With respect to secured transactions, our credit risk may be exacerbated when the collateral cannot be foreclosed on or is
liquidated at prices not sufficient to recover the full amount of the loan or other exposures due to us. Losses from our investments in and loans to other financial institutions could materially and adversely affect our business, financial condition
and results of operations. We may also be requested to participate in providing assistance to distressed financial institutions that are not our subsidiaries. In addition, if the funds collected by the Deposit Insurance Corporation of Japan
(DIC) are insufficient to insure the deposits of failed Japanese banks, the insurance premiums that we pay to the DIC will likely be increased, which could adversely affect our business and results of operations.

Adverse regulatory developments or changes in government policies could have a negative impact on our results of operations.

Our businesses are subject to extensive regulation and associated regulatory risks, including the effects of changes
in the laws, regulations, policies, voluntary codes of practice and interpretations in Japan and the other jurisdictions in which we operate. Those changes and their effects on us are unpredictable and beyond our control.

Changes in the regulatory environment may adversely affect our financial condition and results of operations. In particular, the
financial crisis has led to calls for significant financial reform measures, and various governments are at different stages of enacting legislation that will affect financial institutions.

In response to the financial and economic turmoil, regulatory authorities have been reviewing and revising capital adequacy guidelines,
particularly in relation to quality of capital and accounting standards; such revisions could adversely affect our capital ratios. In December 2010, the BCBS published the Basel III rules text, setting out certain changes to capital requirements
which include raising the quality of banks capital bases, enhancing risk coverage, inhibiting leverage, reducing pro-cyclicality and introducing liquidity regulation, many of which have been fully applied or phased-in in Japan based on the
Basel III implementation schedule.

The FSAs Financial Inspection Manual for financial institutions and related
guidelines are revised or amended from time to time. Our implementation of any such changes could result in an increase in our administrative expenses, which could have an adverse effect on our results of operations and financial condition.

The FSA and regulatory authorities in the United States and other jurisdictions, along with the United Nations, have in
recent years made the prevention of money laundering and terrorism financing a focus of governmental policy relating to financial institutions. Any regulatory action or change in regulatory focus, whether as a result of inspections or regulatory
developments, may negatively affect our banking operations and may require expensive remediation.

The Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act), which was enacted in July 2010, provides a broad framework for significant regulatory changes across most areas of U.S. financial regulations. The Dodd-Frank Act addresses, among other
issues, systemic risk oversight, bank capital standards, the resolution of failing systemically significant financial institutions, over-the-counter (OTC) derivatives, the ability of banking entities to engage in proprietary trading
activities and invest in hedge funds and private equity funds, consumer and investor protection, and securitization. Implementation of the Dodd-Frank Act is taking place through detailed rulemaking over multiple years by various regulators.

These and similar, or any other kind of significant regulatory developments could adversely affect our capital ratios and
results of operations. For further details, see Item 4.B. Business OverviewRegulations in



15



---

##### Table of Contents

Japan, Regulations in the United States, and Regulations in Other Jurisdictions. Since those changes in regulation or fiscal or other policies and their effects are unpredictable and beyond
our control, we may not be able to comply with those changes at all times, despite our efforts. Any such failures could result in administrative or judicial proceedings against us, including suspension of our business and financial penalties, which
could materially adversely affect our business, reputation, results of operations and financial condition.

Changes in
the competitive and financial environment and financial systems could have a negative effect on the financial services industry and us.

Deregulation of the financial system, consolidation among financial institutions, diversification within the financial services industry, and the expanded presence of foreign financial institutions and
investors have made the Japanese financial services market highly competitive. Moreover, competition in overseas markets has intensified due to global consolidation, convergence and alliances among financial institutions. We compete with various
types of financial services companies, including:



| |  |  | banking groups, including Japans other major banking groups;
| | - |  | -------------------------------------------------------------



| |  |  | government-controlled and government-affiliated entities;
| | - |  | ---------------------------------------------------------



| |  |  | regional banking institutions;
| | - |  | ------------------------------



| |  |  | major investment banks; and
| | - |  | ---------------------------



| |  |  | non-bank financial institutions.
| | - |  | --------------------------------

Government measures implemented to stabilize the market and changes in the regulatory framework as well as other government actions may affect our competitive position. The Japan Post Bank Co., Ltd.
(Japan Post Bank) is a government-controlled entity due to its status as a subsidiary of Japan Post Holdings Co., Ltd. (Japan Post Holdings), and one of the worlds largest deposit-taking financial institutions. Under
the Postal Privatization Act, Japan Post Bank is required to receive prior approval of the Government of Japan to expand its business until Japan Post Holdings disposes of at least half of the shares of Japan Post Bank. Japan Post Holdings disposed
approximately 11% of its shares of Japan Post Bank and Japan Post Bank was listed on the Tokyo Stock Exchange in November 2015, as the first phase of the plan for Japan Post Holdings to gradually dispose of its shares of Japan Post Bank down to
around 50% ownership.

Increased competition in Japan may put downward pressure on prices for our financial services, cause us
to lose market share or require us to incur additional expenses in order to remain competitive. Internationally, various forms of financial support provided by foreign governments to foreign banks and other financial institutions may reduce the cost
of capital to those institutions and otherwise give them competitive advantages. There can be no assurance that we will be able to respond effectively to current or future competition.

The changes in the financial environment in Japan may also have a negative effect on the Japanese financial services industry. For
example, changes in the monetary policy measures of the Bank of Japan (BOJ), including the expansion of the negative interest rate policy, may result in a further decrease in interest rates in Japan. This may lower the domestic interest
spreads and significantly affect the businesses of commercial banks in Japan, including us, and have other unforeseen side effects on the functioning of and competition within Japans financial markets. For further information on the BOJs
monetary policy measures, see Item 5. Operating and Financial Review and ProspectsOverviewFactors Affecting Results of Operation.

Damage to our reputation may have an adverse effect on our business and results of operations.

Maintaining our reputation is vital to our ability to attract and maintain customers, investors and employees. Our reputation could be damaged through a variety of circumstances, including, among others,
fraud or other misconduct or unlawful behavior by directors, officers or employees, systems failures, compliance failures,



16



---

##### Table of Contents

investigations, adverse litigation judgments or regulatory decisions, or unfavorable outcomes of governmental inspections. Negative media coverage of Japans financial services industry or
us, even if inaccurate or not applicable to us, may have a materially adverse effect on our brand image and may undermine depositor confidence, thereby affecting our businesses and results of operations. For example, actual or rumored investigations
of us or our directors, officers or employees, or actual or rumored litigation or regulatory proceedings, or media coverage of the same, may have a material adverse effect on our reputation and could negatively affect the prices of our securities.
Actions by the financial services industry generally or by certain members in the industry can also adversely affect customers confidence on the financial services industry. Such reputational harm could also lead to a decreased customer base,
reduced revenues and higher operating costs.

Other Risks

Our failure to establish, maintain and apply adequate internal controls over financial reporting could negatively impact investor confidence in the reliability of our financial statements.

In order to operate as a global financial institution, it is essential for us to have effective internal controls,
corporate compliance functions, and accounting systems to manage our assets and operations.

As a New York Stock Exchange
(NYSE)-listed company and a registrant with the U.S. Securities and Exchange Commission (SEC) under section 404 of the U.S. Sarbanes-Oxley Act of 2002, our management is required to assess the effectiveness of our internal
control over financial reporting and disclose whether such internal controls are effective. Our independent registered public accounting firm has to conduct an audit to evaluate and then render an opinion on the effectiveness of our internal control
over financial reporting. The Financial Instruments and Exchange Act of Japan (FIEA) also requires companies listed on a Japanese stock exchange, such as us, to file, together with their annual securities reports required by the FIEA,
audited internal control reports assessing the effectiveness of their internal controls over financial reporting.

We have
established internal controls over financial reporting, as well as rules for evaluating those controls, in order to provide reasonable assurance of the reliability of our financial reporting and the preparation of financial statements. However,
these controls may not prevent or detect errors. Any evaluation of effectiveness to future periods is subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate. To the extent any issues are identified through the foregoing processes, there can be no assurance that we will be able to resolve them in a timely manner or at all. If this occurs, our reputation may be damaged, which
could lead to a decline in investor confidence in us.

Our business operations are exposed to risks of natural
disasters, terrorism, pandemics and other calamities.

Our business operations are subject to the risks of natural
disasters, terrorism, pandemics, blackouts, geopolitical incidents and other calamities, any of which could impair our business operations. Despite our preparation of operation manuals and other backup measures and procedures, such calamities could
cause us to suspend operations and could adversely affect our businesses, financial condition and results of operations. Massive natural disasters such as the Great East Japan Earthquake and any subsequent collateral events, may adversely affect
economic conditions in general, the financial conditions of our corporate and individual customers and stock market prices, or cause other negative effects, any or all of which could materially and adversely affect our financial condition and
results of operations owing to, for example, an associated increase in the amount of credit-related costs or an increase in losses related to our holdings of securities.



17



---

##### Table of Contents

Sales of our shares by us or the Bank may have an adverse effect on the market price
of our shares and may dilute existing shareholders.

We may issue shares from the unissued portion of our authorized
share capital and sell shares held as treasury stock, generally without a shareholder vote. In addition, the Bank may sell any of our shares that it holds. Sales of shares in the future may be at prices below prevailing market prices and may be
dilutive.

It may not be possible for investors to effect service of process within the United States upon us or our
directors, corporate auditors or senior management, or to enforce against us or those persons judgments obtained in U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws.

We are a joint stock corporation incorporated under the laws of Japan. Almost all of our directors, corporate auditors and senior
management reside outside the United States. Many of our assets and the assets of these persons are located in Japan and elsewhere outside the United States. It may not be possible, therefore, for U.S. investors to affect service of process within
the United States upon us or these persons or to enforce, against us or these persons, judgments obtained in U.S. courts predicated upon the civil liability provisions of the federal or state securities laws. We believe that there is doubt as to the
enforceability in Japan, in original actions or in actions to enforce judgments of U.S. courts, of claims predicated solely upon the U.S. federal or state securities laws mainly because the Civil Execution Act of Japan requires Japanese courts to
deny requests for the enforcement of judgments of foreign courts if foreign judgments fail to satisfy the requirements prescribed by the Civil Execution Act, including requirements that:



| |  |  | the jurisdiction of the foreign court be recognized under laws, regulations, treaties or conventions;
| | - |  | -----------------------------------------------------------------------------------------------------



| |  |  | proper service of process be made on relevant defendants, or relevant defendants be given appropriate protection if such service is not received;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the judgment and proceedings of the foreign court not be repugnant to public policy as applied in Japan; and
| | - |  | ------------------------------------------------------------------------------------------------------------



| |  |  | there exist reciprocity as to the recognition by a court of the relevant foreign jurisdiction of a final judgment of a Japanese court.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------

Judgments obtained in U.S. courts, predicated upon the civil liability provisions of the U.S. federal or
state securities laws, may not satisfy these requirements.

As a holder of our American Depositary Shares
(ADSs), you have fewer rights than a shareholder of record in our shareholder register because you must act through the depositary to exercise these rights.

The rights of our shareholders under Japanese law to take actions such as voting their shares, receiving dividends and distributions, bringing derivative actions, examining our accounting books and
records and exercising appraisal rights are available only to our shareholders of record. Because the depositary, through its custodian, is the record holder of the shares underlying the ADSs, only the depositary can exercise shareholder rights
relating to the deposited shares. ADS holders will not be able to directly bring a derivative action, examine our accounting books and records or exercise appraisal rights.

Pursuant to the deposit agreement among us, the depositary and the holders and beneficial owners of ADSs, the depositary will endeavor to exercise voting and other rights associated with shares underlying
ADSs in accordance with instructions given by ADS holders, and the depositary will also pay to ADS holders dividends and distributions collected from us. However, the depositary is permitted under the deposit agreement to exercise reasonable
discretion in carrying out those instructions or in making distributions, and is not liable for failure to carry out instructions or make distributions as long as it acts in good faith. Therefore, ADS holders may not be able to exercise voting or
other rights associated with the shares underlying ADSs in the manner that they intend,



18



---

##### Table of Contents

or may lose some or all of the value of dividends or distributions collected from us. Moreover, the deposit agreement may be amended or terminated by us and the depositary without any reason, or
consent from or notice to ADS holders. As a result, ADS holders may not be able to exercise rights in connection with the deposited shares exercised in the way they wish or at all.

ADS holders are dependent on the depositary for certain communications from us. We send to the depositary most of our communications to
ADS holders in Japanese. ADS holders may not receive all of our communications in the same manner as or on an equal basis with shareholders of record in our shareholder register.



|Item 4. | Information on the Company
|------- | --------------------------

4.A.    HISTORY AND DEVELOPMENT OF THE COMPANY

Legal and Commercial Name

Our legal name is Sumitomo Mitsui Financial Group, Inc. Our commercial name is Sumitomo Mitsui Financial Group.

Date of Incorporation

We were established in December 2002.

Domicile and Legal Form

We are a joint stock corporation incorporated with
limited liability under the laws of Japan. Our address is: Sumitomo Mitsui Financial Group, Inc., 1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan. Our telephone number is: +81-3-3282-8111.

History and Development

We were established in December 2002 as a holding company for the Group through a statutory share transfer (kabushiki-iten) of all
of the outstanding equity securities of the former SMBC in exchange for our newly issued securities. Upon our formation and completion of the statutory share transfer, the former SMBC became our direct, wholly owned subsidiary. The Bank was
established in March 2003 through the merger of the former SMBC with Wakashio Bank, which was established in 1996 as a subsidiary of Sakura Bank. The former SMBC was established in April 2001 through the merger of Sumitomo Bank and Sakura Bank,
which was established through the merger of Taiyo Kobe Bank and Mitsui Bank in 1990. Mitsui and Sumitomo started their banking businesses in 1876 and 1895, respectively. The origins of both banking businesses can be traced back to the seventeenth
century.

Information Concerning the Principal Capital Expenditures and Divestitures

On April 1, 2016, Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL) acquired General Electric Company
(GE) groups leasing business in Japan for ¥181 billion by acquiring a 100% equity interest in GE Japan GK (GE Japan). The acquired leasing business is comprised mainly of equipment/asset leasing, small-ticket
leasing, and automotive leasing.

Public Takeover Offers

Not applicable.



19



---

##### Table of Contents

4.B.     BUSINESS OVERVIEW

Overview

We are a
holding company that directly owns 100% of the issued and outstanding shares of the Bank, one of the largest commercial banks in Japan. We are one of the three largest banking groups in Japan with an established presence across all of the consumer
and corporate banking sectors. Our subsidiaries in our Commercial Banking segment include, in addition to the Bank, SMBC Trust Bank Ltd. (SMBC Trust Bank), Kansai Urban Banking Corporation (KUBC), THE MINATO BANK, LTD.
(The Minato Bank), Sumitomo Mitsui Banking Corporation Europe Limited (SMBC Europe), and Sumitomo Mitsui Banking Corporation (China) Limited (SMBC (China)). Our subsidiaries also include SMFL in our Leasing
segment; SMBC Nikko Securities Inc. (SMBC Nikko Securities) and SMBC Friend Securities Co., Ltd. (SMBC Friend Securities) in our Securities segment; and Sumitomo Mitsui Card Company, Limited (Sumitomo Mitsui
Card), Cedyna and SMBC Consumer Finance in our Consumer Finance segment. See Item 4.C. Organizational Structure.

Management Philosophy

Our Group-wide management philosophy is as follows:



| |  |  | we grow and prosper together with our customers, by providing services of greater value to them;
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | we aim to maximize our shareholders value through the continuous growth of our business; and
| | - |  | ---------------------------------------------------------------------------------------------



| |  |  | we create a work environment that encourages and rewards diligent and highly-motivated employees.
| | - |  | -------------------------------------------------------------------------------------------------

In addition to our Group-wide management philosophy, we have also established a code of conduct. Our code of conduct is designed to be a
guideline for the conduct of our directors, officers and employees in the realization of our Group-wide management philosophy in all areas. Our code of conduct is as follows:



| |  |  | to strive to increase shareholder value whilst also maintaining healthy relationships with customers, employees and other stakeholders. To give utmost
consideration to the trust which people have in the Bank, to abide by all laws and regulations, to maintain a high ethical standard, and to act fairly and sincerely;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | to continue improving our knowledge and capability and, at the same time, to raise our productivity in order to provide superior financial services at
competitive prices;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | to establish a top brand global bank by understanding the needs of each customer and by providing valuable services which meet those needs;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | to be selective and focused in the implementation of our business strategy, to define and develop the competitive advantages which we have over our
competitors and, by allocating managerial resources strategically to those businesses, to become a top player in our selected markets;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | to be creative, proactive and courageous in order to be in a leading position in all business areas and always a step ahead of our competitors;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | to build a strong organization based on market practice and sound principles whilst reflecting our diverse values. To delegate internal authority under
an efficient and effective management system which facilitates speedy decision-making and execution; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | to support the growth of our business by setting challenging targets for our staff and employing results-based evaluation and compensation systems.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------

Environment

We recognize preservation of the environment as one of our most important management objectives and strive to achieve harmony with the natural environment in our corporate activities.



20



---

##### Table of Contents

Basic Philosophy Regarding the Groups Environmental Activities

Recognizing the importance of realizing a sustainable society as one of our most important tasks, we make continuous
efforts to harmonize environmental preservation and pollution control with corporate activities, in order to support the economy and contribute to the betterment of society as a whole.

We and our principal Group companies have obtained ISO 14001 certification, the international standard for environmental management
systems. Every year we set environmental objectives which we systematically pursue through environmental activities based on a PDCA (Plan, Do, Check and Act) cycle. The Bank and some of our other Group companies adopted Principles for
Financial Action towards a Sustainable Society in October 2011, which have been set forth for the purposes of making environmental financing widely-known and improving the quality of environmental financing.

The Bank made its head office carbon neutral and requires land pledged as collateral to undergo soil contamination and
asbestos risk assessment. In addition, we also apply the Equator Principles, a set of guidelines for financial institutions to assess and manage social and environmental impacts related to the financing of large-scale development
projects, when we finance such projects.

Description of Operations and Principal Activities

Commercial Banking

We offer commercial banking services to a wide range of customers including large corporations, mid-sized companies, small-sized companies, individuals, governments and governmental entities mainly
through the Bank. The Bank has solid franchises in both corporate and consumer banking in Japan. The Bank has long-standing and close business relationships with many companies listed on the First Section of the Tokyo Stock Exchange and long
historical relationships with the so-called Sumitomo Group and Mitsui Group companies.

The Bank provides an extensive range
of corporate and consumer banking services in Japan and wholesale banking services overseas. In Japan, the Bank accepts deposits from, makes loans to, extends guarantees to and provides other products and services to corporations, individuals,
governments and governmental entities. The Bank offers financing solutions through loan syndication, structured finance and project finance to large corporate customers in the domestic and overseas markets, as well as a variety of financing options
to domestic mid-sized companies, small-sized companies and individuals. The Bank also underwrites and deals in bonds issued by or guaranteed by the Government of Japan and local government authorities, and acts in various administrative and advisory
capacities for select types of corporate and government bonds. Internationally, the Bank operates through a network of branches, representative offices, subsidiaries and affiliates to provide loan syndication, project finance and cash management
services and participate in international securities markets.

The Bank conducts its primary banking business through its four
business units: the Wholesale Banking Unit, the Retail Banking Unit, the International Banking Unit and the Treasury Unit. In addition to the four business units, the Investment Banking Unit, the Corporate Advisory Division, the Private Advisory
Division and the Transaction Business Division of the Bank provide a broad range of financial products, services and solutions to address sophisticated and diverse issues and needs of the Banks customers. The Corporate Advisory Division
operates within the Wholesale Banking Unit, and the Private Advisory Division operates within the Wholesale Banking Unit and the Retail Banking Unit, while the Transaction Business Division operates within the Wholesale Banking Unit, the Retail
Banking Unit and the International Banking Unit. Further, the Bank has the Corporate Staff Unit, the Corporate Services Unit, the Compliance Unit, the Risk Management Unit and the Internal Audit Unit.

The Banks Wholesale Banking Unit

The Banks Wholesale Banking Unit aims to offer business solutions for the increasingly complex and diverse management issues that are faced by large Japanese corporations, including listed companies
and



21



---

##### Table of Contents

mid-sized companies, and, together with certain of our Group companies, provides a wide range of financial products and services targeting those
corporations and companies, through 178 sales channels of the Bank at March 31, 2016. The financial products and services that this business unit provides include deposits, loans including syndicated loans, commitment lines, structured finance and
nonrecourse loans, settlement services, cash management, leasing, factoring, management information systems consulting, collection and investment banking services. This business unit also provides the following products and services:



| |  |  | Services for Globalizing Corporations. In light of the recent overseas expansion trend, the Bank focuses on offering products and services
whereby the Bank assists those customers entering new markets, especially in China and other Asian countries, and accommodates an increase in their international trade operations.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Loan Products and Services to Promote Socially Responsible Activities. The Bank provides a variety of loan products and services designed for
corporate clients engaging in socially responsible activities. These activities include environmentally friendly activities, improvement of eating habits, development of agricultural and fishery industries, and development of risk management systems
for emergency situations. The Bank evaluates their socially responsible activities and offers loans with certain conditions incorporating the results of its evaluation. Furthermore, in connection with these loans, the Bank provides advice in
relation to the clients socially responsible initiatives.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Services to Promote B-to-B Transactions. The Bank, with its subsidiaries and affiliates, provides various internet settlement services to meet
its customers needs. The Bank has promoted these services to stimulate greater demand for its solutions business. Using these services, corporate customers are able to transfer money more easily and effectively, and also utilize foreign
exchange services to transfer funds to and from their overseas counterparts in foreign currencies.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The
Banks Retail Banking Unit

The Banks Retail Banking Unit provides financial services to both consumers residing
in Japan and domestic small-sized companies.

For consumers, this business unit offers a wide range of financial services
including personal bank accounts, deposit products such as ordinary deposits, time deposits and foreign currency deposits, and the following products and services through various channels:



| |  |  | Housing Loans. Housing loans, which are principally secured by collateral or supported by guarantees, are one of the primary products offered by
this business unit. The Bank provides housing loans with a variety of terms and interest rates, including 2- to 35-year term, fixed-rate loans, to meet diversified customer needs. For instance, the Bank offers a housing loan combined with an
insurance policy that covers the repayment of the outstanding loan balance in the event the borrower is diagnosed with certain diseases.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Investment Trust. The Bank, as a broker, provides a variety of investment trust products with varying risk-return profiles that are developed
and managed by experienced asset management companies within Japan and overseas. Also, the Bank, together with its subsidiary SMBC Nikko Securities, offers discretionary investment management services.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Insurance Products. The Bank, as an agent, offers pension-type insurance, whereby customers who make all premium payments are able to receive
annuity payments when they reach a certain age. The Bank, as an agent, also sells a wide range of insurance products, including medical insurance, juvenile insurance, home fire insurance, single-premium whole life insurance and level-premium life
insurance.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Consumer Finance Services. The Bank offers a variety of consumer loan products such as unsecured card loan products to its individual customers.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------



22



---

##### Table of Contents

In addition, the Bank is promoting the collaboration with its subsidiary SMBC Nikko
Securities to meet customers diverse needs for asset management by leveraging their respective strengths of a broad client base and a high advisory capability.

The operations are mainly conducted through a large and well developed branch network. The Bank had a domestic network consisting of 440 branch offices at March 31, 2016, most of which were located in the
Tokyo and Osaka regions. Some branches provide financial consulting services for asset management and housing loans during extended hours, including weekday evenings, weekends and national holidays, for the convenience of individual customers.

The Bank also operates an extensive network of ATMs in Japan. At March 31, 2016, the Bank offers its customers access
to 53,284 ATMs, some of which are the Banks ATMs and the majority of which are ATMs made available through arrangements with other ATM providers such as convenience store chains.

This business unit also offers internet banking services for consumers. At March 31, 2016, the Banks internet banking services had
approximately 14 million registered users. The users are able to transfer funds, perform balance inquiries, make time deposits and foreign currency deposits, and buy and sell investment trusts over the internet, as well as over the mobile phone or
the traditional telephone.

For small-sized companies, this business unit provides a wide array of financial products and
services to comprehensively address in the same place business owners needs as both corporate managers and individuals such as business and asset succession.

The Bank also offers wealth management services to its customers in collaboration with SMBC Trust Bank, SMBC Nikko Securities and Barclays PLC (Barclays). For further information on alliance
with Barclays, see Other Major Group Companies and AlliancesAlliance with Barclays PLC.

The
Banks International Banking Unit

The Banks International Banking Unit mainly supports companies, financial
institutions, sovereign/quasi-sovereign entities outside Japan, and multinational companies operating in Japan. This business unit provides a variety of tailored products and services to meet customer and market requirements, including loans,
deposits, clearing services, trade finance, project finance, loan syndication and global cash management services.

At March
31, 2016, the Banks international network consisted of 17 branches, 17 sub-branches and 5 representative offices and the Bank seeks to meet customers needs globally, together with the network of the Banks foreign banking
subsidiaries such as SMBC Europe with 7 offices and SMBC (China) with 15 offices, and foreign banking associates including PT Bank Tabungan Pensiunan Nasional Tbk, The Bank of East Asia, Limited, ACLEDA Bank Plc. and Vietnam Export Import Commercial
Joint Stock Bank.

Based on our strategy of expanding our businesses globally, the Bank has been promoting strategic alliances
to enhance products and services with leading financial institutions such as Barclays and Kotak Mahindra Bank Limited. Additionally, in order to further expand our business in the U.S., we and the Bank obtained financial holding company status under
the U.S. Bank Holding Company Act of 1956, as amended (Bank Holding Company Act), on May 7, 2013, which allows the expansion of the scope of services to provide in the U.S., including underwriting and trading of securities and providing
other investment banking services.

The Banks Treasury Unit

The Banks Treasury Unit operates in the domestic and international money, foreign exchange, securities and derivatives markets to
serve customer needs and the Banks own asset and liability management requirements.



23



---

##### Table of Contents

To further expand the Banks customer base, this business unit also seeks to provide
specialized solutions and enhance customer service capabilities in market transactions through the following activities:



| |  |  | providing a variety of products from traditional money and foreign exchange transactions to derivative transactions; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------



| |  |  | developing channels such as an internet banking site providing foreign exchange transactions to satisfy a variety of requirements and orders from
customers.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------

Others

The Bank also engages in the following business activities through its business units:



| |  |  | Payment Services. The Bank handles money remittances for municipalities, public and private corporations and individuals in Japan and overseas.
Domestic remittance services are significant in Japan, where checks are rarely used and money remittance is a major means of payment. The Bank also handles the collection for its customers of promissory notes, bills of exchange and checks.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Foreign Exchange. The Bank engages in a variety of foreign exchange transactions, including foreign currency exchange, overseas transfers and
trade finance for export and import activities.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following unit or divisions provide a broad range of
financial products, services and solutions to address sophisticated and diverse issues and needs of the Banks customers.



| |  |  | Investment Banking Unit. The Investment Banking Unit provides a broad range of sophisticated financial products and services, as follows:
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Customized Financial Services and Financing Solutions. The Bank provides a wide range of innovative financial services and financing solutions
to its corporate clients, including loan syndication, structured finance, project finance, acquisition financing such as LBO and MBO financing, non-recourse real estate finance, securitization, derivatives and M&A advisory.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Securities Intermediary Services for Corporate Clients. The Bank provides corporate clients with securities intermediary services, and offers
structured bonds, subordinated bonds and other products to corporate clients in cooperation with SMBC Nikko Securities.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Corporate Bond Trust Services. The Bank serves as a trustee or co-trustee of corporate mortgage bonds. The Bank also serves as a commissioned
company for bondholders and as a fiscal and paying agent for unsecured bonds that are issued and publicly offered by domestic and foreign customers. In this role, the Bank also advises issuers about market conditions and provides administrative
services on behalf of issuers.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Other Trust Services. The Bank offers other trust services to its customers, including monetary claims trusts for asset securitizations and
trusts for structured finance.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Principal Investments. The Bank, directly or through private equity funds, invests in corporate customers seeking to restructure or reorganize
themselves or expand their businesses.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Solutions Related to Growing Industrial Sectors. The Bank provides a wide range of solutions to corporate customers addressing businesses
related to growing industrial sectors, such as environmental, infrastructure, water, new energy, agriculture, health care, and robot industries.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Corporate Advisory Division. The Corporate Advisory Division complements our service lineup for both listed and non-listed companies, providing
financial solutions for the increasingly sophisticated and diverse management issues faced by corporate clients. This division provides a centralized information platform that maintains the Banks accumulated information and knowledge
concerning a wide range of industries. Leveraging this centralized information platform, this division provides the Banks customers with proposals for strategic initiatives to help enhance their corporate value. This
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



24



---

##### Table of Contents

| | division establishes a separate team for each project and works in cooperation with the Banks other departments and our Group companies, including SMFL and SMBC Nikko Securities. This
division aims to offer comprehensive solutions for M&A, strategic investment, business alliances and other management issues.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Private Advisory Division. The Private Advisory Division addresses areas where the needs of individuals and corporate clients overlap, including
private banking, corporate employees business, business succession and asset succession consulting for business owners and high-net-worth individuals.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Transaction Business Division. The Transaction Business Division complements our transaction and financing services, including cash management,
settlement, foreign exchange and supply chain finance for our corporate clients. This division aims to offer a variety of products and services to capture customers cash flows and business flows.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition to the Bank, our domestic banking subsidiaries include SMBC Trust Bank, KUBC and The Minato Bank. SMBC Trust Bank, which
became our wholly owned subsidiary in October 2013, offers extensive trust services tailored to the needs of customers, such as wealth management solutions. On November 1, 2015, SMBC Trust Bank acquired the retail banking business of Citibank Japan
Ltd. (Citibank Japan), a wholly owned subsidiary of Citigroup Inc. Through this acquisition, SMBC Trust Bank is expanding its business model to offer additional products and services to its customers, including foreign currency
investment products and global services. KUBC and The Minato Bank are regional financial institutions based in Kansai area and provide commercial banking services to corporations and individuals.

Our domestic banking associate is The Japan Net Bank, Limited (The Japan Net Bank), which, as an internet bank, provides
internet-based services such as deposits, loans and investment products. The Japan Net Bank, which had been our subsidiary, became our associate in April 2014 due to a decrease in our proportion of voting rights.

Our foreign banking subsidiaries include SMBC Europe, SMBC (China), Manufacturers Bank, Sumitomo Mitsui Banking Corporation of Canada,
Banco Sumitomo Mitsui Brasileiro S.A., JSC Sumitomo Mitsui Rus Bank, PT Bank Sumitomo Mitsui Indonesia and Sumitomo Mitsui Banking Corporation Malaysia Berhad.

Our foreign banking associates include PT Bank Tabungan Pensiunan Nasional Tbk, The Bank of East Asia, Limited, one of the largest commercial banks in Hong Kong, which became our associate in March 2015,
ACLEDA Bank Plc., the largest bank in Cambodia, which became our associate in September 2015, and Vietnam Export Import Commercial Joint Stock Bank.

Leasing

Sumitomo Mitsui Finance and Leasing Company, Limited

Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL), one of the major leasing companies in Japan,
provides a variety of leasing services including equipment, operating, leveraged and aircraft leasing. The aircraft leasing business was integrated into SMBC Aviation Capital, a subsidiary of SMFL, in 2013. We have a 60% equity interest in SMFL,
while the remaining 40% is held by Sumitomo Corporation, a non-affiliate.

On April 1, 2016, SMFL acquired GE groups
leasing business in Japan by acquiring a 100% equity interest in GE Japan. The acquired leasing business is comprised mainly of equipment/asset leasing, small-ticket leasing, and automotive leasing. Through this acquisition, we aim to upgrade the
marketing strategies and sales capabilities by leveraging GE Japans know-how developed under GE, and offer a wide range of financial solutions by enhancing the combined client base of SMFL and GE Japan.



25



---

##### Table of Contents

Others

In addition to the above companies, our U.S. subsidiary SMBC Leasing and Finance, Inc. engages in the leasing business. Our associate Sumitomo Mitsui Auto Service Company, Limited engages in the auto
leasing business.

Securities

SMBC Nikko Securities Inc.

As one of the major Japanese securities
companies, SMBC Nikko Securities Inc. (SMBC Nikko Securities), our wholly owned subsidiary, offers a wide range of financial products and investment consultation and administrative services to its individual and corporate customers in
Japan. For individual customers, SMBC Nikko Securities provides consulting services to meet diversified asset management needs at 123 branches nationwide at March 31, 2016, and a widely used online trading tool. For corporate customers, it also
offers trading capabilities and financial products, debt and equity underwriting, and M&A advisory services, mainly in Japan.

SMBC Nikko Securities, together with its overseas network, SMBC Nikko Securities (Hong Kong) Limited, SMBC Nikko Securities (Singapore) Pte. Ltd., SMBC Nikko Capital Markets Limited and SMBC Nikko
Securities America, Inc. (SMBC Nikko Securities America), seeks to provide financial services such as brokerage services of Japanese stocks and M&A advisory services to clients on a global basis. To strengthen our cross-border
M&A and other advisory services to Japanese companies, SMBC Nikko Securities, the Bank and Moelis & Company, a global investment bank headquartered in New York, established a business alliance in March 2011. In February 2012, we invested
approximately $93 million in Moelis & Company to enhance the existing business alliance.

SMBC Friend Securities Co.,
Ltd.

SMBC Friend Securities Co., Ltd. (SMBC Friend Securities), our wholly owned subsidiary, is a full-line
securities company focusing on retail business. SMBC Friend Securities has a nationwide network that offers services tailored to the needs of its clients and offers online financial consulting services.

On May 12, 2016, we announced our plan to merge SMBC Nikko Securities and SMBC Friend Securities in January 2018. We expect the merger
will strengthen our securities business by reinforcing consulting type sales, enhancing productivity through the optimization of sales personnel staffing, and achieving cost saving synergies resulting from the consolidation of overlapping management
infrastructure.

Business Alliance with Citigroup Inc.

In May 2009, we entered into a strategic business alliance with Citigroup Inc. (Citigroup) centering on a variety of
collaborative activities between SMBC Nikko Securities and Citigroup. As part of this alliance, Citigroup provides us with access to its global corporate and investment banking networks, including sales and trading and M&A services. The
long-standing relationship between Citigroup and the former Nikko Cordial Securities Inc. in the origination and distribution of financial products in Japan and globally is being upheld with SMBC Nikko Securities.

Consumer Finance

Sumitomo Mitsui Card Company, Limited

Sumitomo Mitsui Card Company,
Limited (Sumitomo Mitsui Card) is a leading company in Japans credit card industry, having introduced the Visa brand into the Japanese market. Sumitomo Mitsui Card conducts a comprehensive credit card business with a strong brand,
and offers a variety of settlement and finance services to meet diverse customer needs.



26



---

##### Table of Contents

We, Sumitomo Mitsui Card, the Bank and NTT DoCoMo, Inc. (NTT DoCoMo) formed a
strategic business and capital alliance in credit payment service. We have a 66% equity interest in Sumitomo Mitsui Card, while the remaining 34% is held by NTT DoCoMo. Pursuant to the alliance, Sumitomo Mitsui Card offers a credit payment service
using NTT DoCoMos mobile phones equipped with contactless IC chips.

In addition, Sumitomo Mitsui Card issues a variety
of affiliated credit cards in cooperation with partners including, but not limited to, railway companies, airline companies, department stores and retailers to satisfy both these partners and cardholders needs. Sumitomo Mitsui Card also
provides services for customers such as travelers and retailers both in Japan and China, in alliance from 2005, with China UnionPay Co., Ltd., a bankcard association in China.

Cedyna Financial Corporation

Cedyna Financial Corporation
(Cedyna), our wholly owned subsidiary, conducts credit card, installment (such as shopping credit and automobile loan) and solution (such as collection outsourcing and factoring) businesses.

In April 2014, Cedyna transferred its own collection outsourcing business to SMBC Finance Service Co., Ltd., its wholly owned subsidiary
that provides collection outsourcing services and has strong customer base and internet settlement know-how, in order to strengthen its competitive edge by taking advantage of scale and promoting streamlining.

SMBC Consumer Finance Co., Ltd.

SMBC Consumer Finance Co., Ltd. (SMBC Consumer Finance), our wholly owned subsidiary, is a core entity in our consumer lending business. It provides consumer loans, together with its wholly
owned subsidiary Mobit Co., LTD., that consist mainly of unsecured loans to individuals, and conducts other business including loan guarantee business. SMBC Consumer Finance guarantees certain consumer loans made by the Bank.

Others

In addition to the above companies, our subsidiary Sakura Card Co., Ltd., which was merged into Cedyna on April 1, 2016, and our associate
Pocket Card Co., Ltd. engage in the credit card business, and our subsidiary SMM Auto Finance, Inc. engages in automobile sale financing.

Other Major Group Companies and Alliances

The Japan Research
Institute, Limited

The Japan Research Institute, Limited (The Japan Research Institute) is our wholly owned
subsidiary that provides financial consultation services on management reform, IT, the planning and development of strategic information systems and outsourcing. It also conducts diverse activities including domestic and international economic
research and analysis, policy recommendations and business incubation.

Alliance with Barclays PLC

Barclays PLC (Barclays) and the Bank have allied to explore joint business development opportunities, and in April 2010,
Barclays, the Bank and SMBC Nikko Securities established a division in SMBC Nikko Securities to provide wealth management services to high-net-worth individuals in Japan. In May 2010, the Bank entered into a business alliance agreement with Absa
Bank Limited, a group company of Barclays, regarding collaboration on services to Japanese companies in South Africa and other African countries. We have intensified our management-level communications with Barclays regarding, for example, the
effects of strengthened regulation of the global banking industry. The Bank believes these initiatives will yield mutual benefits and will facilitate business expansion for us in targeted growth business areas, both foreign and domestic.



27



---

##### Table of Contents

Credit Loss Protection Agreement with Goldman Sachs

To expand its overseas portfolio and revenue, the Bank entered into agreements with Goldman Sachs in 2003 to provide credit protection to
Goldman Sachs extension of credit to their investment grade clients in exchange for receiving a proportion of the fees and interest income from the borrowers. In connection with the agreements, Goldman Sachs established certain wholly owned
subsidiaries (William Street Entities) that might make credit commitments and extensions. Goldman Sachs entered into credit loss protection arrangements with the Bank in order to hedge in part the credit risk to its investment in the
William Street Entities. The Bank, through its Cayman Islands branch, would issue letters of credit in exchange for fees equal to a portion of the fees and interest to be paid by the borrowers to the William Street Entities. The first letter of
credit (FLC), was issued in 2003 in a maximum available amount of $1 billion, and is available over a 20-year period, subject to early termination or extension. Also, from time to time over a 20-year period, subject to early termination
or extension and other conditions, upon the request of Goldman Sachs, the Bank has issued letters of credit and may issue one or more additional letters of credit (each a second letter of credit (SLC Series) exposing the Bank to risk
rated BBB/Baa2 or higher in an aggregate maximum available amount of $1.125 billion). Goldman Sachs may draw on the letters of credit in the event that Goldman Sachs realizes certain losses (Specified Losses), with respect to loan
commitments or loans extended thereunder that Goldman Sachs has entered into with specified borrowers approved by the Bank and Goldman Sachs.

Under the FLC, Goldman Sachs is entitled to draw from time to time amounts equal to approximately 95% of Specified Losses, up to an aggregate stated amount of $1 billion. Under the SLC Series, Goldman
Sachs is entitled, subject to certain conditions, to draw from time to time amounts equal to approximately 70% of Specified Losses above specified loss thresholds, up to an aggregate stated amount of $1.125 billion. Goldman Sachs has made a small
number of drawdowns under the FLC in accordance with its terms.

In connection with these credit arrangements, the Bank pays
Goldman Sachs an administration fee based on the aggregate amount of commitments covered by the FLC.

The credit loss
protection arrangements contain a number of provisions that give the Bank some control over the determination of borrowers to which it has potential exposure under the FLC and any SLC Series:



| |  |  | Goldman Sachs may make credit commitments covered by the arrangements only to borrowers approved by the Bank.
| | - |  | -------------------------------------------------------------------------------------------------------------



| |  |  | Unless the Bank and Goldman Sachs agree otherwise, the borrowers covered by the FLC and any SLC Series that are rated by both of the two major rating
agencies must be rated investment grade by at least one, and borrowers that are rated only by one of the two major rating agencies must be rated investment grade by that rating agency. If neither of the two major rating agencies rates a borrower,
then further credit to the borrower shall no longer be covered by the FLC or any SLC Series, if the Bank and Goldman Sachs determine the borrowers credit conditions are lower than investment grade.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | If the ratings of an approved borrower fall below investment grade in the judgment of both major rating agencies (or, if a borrower is rated investment
grade by only one agency, and that agency downgrades the borrower below investment grade), further credit to that borrower will no longer be covered by these arrangements, unless the Bank and Goldman Sachs otherwise agree.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | On the fifth, tenth and fifteenth anniversaries of the transaction, the Bank has the right to cause Goldman Sachs to stop extending new credit to
borrowers the Bank deems to have become unbankable. Unbankable borrowers are those who have investment grade ratings from the two major rating agencies but are deemed by the Bank to be below BB- and below Ba3 based on the Banks
application of rating agency methodologies and criteria. If Goldman Sachs disagrees with the Bank, the matter is to be referred to arbitration, and a suspension is effective unless and until an arbitrator rules in favor of Goldman Sachs.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



28



---

##### Table of Contents

The Bank, through a separate bankruptcy-remote Cayman Islands subsidiary, has collateralized
the obligations on the FLC and a portion of the SLC Series by buying $1.723 billion of Goldman Sachs demand notes and pledging those demand notes to Goldman Sachs. If Goldman Sachs activates an SLC Series that is not collateralized, the Bank through
its Cayman Islands subsidiary will be required to purchase and pledge additional Goldman Sachs demand notes with a principal amount equal to the stated amount of that SLC Series. Subject to certain conditions, the Bank has the right to substitute as
collateral high quality liquid securities for the Goldman Sachs demand notes.

These arrangements are designed to
collateralize the Banks obligations in the event the Banks Cayman Islands branch fails to perform on the FLC or any SLC Series, including as a result of our insolvency or the insolvency of the Bank or the Banks Cayman Islands
branch.

If Goldman Sachs credit rating, as determined by either of the two major credit rating agencies, falls below
investment grade, Goldman Sachs is obligated to provide collateral to the Bank to support Goldman Sachs obligations under the Goldman Sachs demand notes. After an initial 15-year period under the letters of credit, the Bank and Goldman Sachs
will negotiate in good faith to extend the terms of the letter of credit arrangements for one additional five-year term. Before the expiration of the initial 20-year term, in certain circumstances, the letter of credit arrangements with the Bank may
be terminated by the Bank or Goldman Sachs, in which event Goldman Sachs would be obligated to prepay any outstanding demand notes. In circumstances related primarily to the creditworthiness of the Bank or a breach of its representations or
covenants, Goldman Sachs may draw on the letters of credit for early termination amounts of up to the remaining undrawn or available amount on the letters of credit. In connection with draws on the letters of credit of early termination amounts,
Goldman Sachs would have to prepay any outstanding demand notes. Goldman Sachs also would be obligated to pay the Bank on the originally scheduled expiration date of the letter of credit arrangements an amount equal to the early termination amounts
minus the losses that would have been reimbursed under the letters of credit had they not terminated early.

Management
Policies

With the completion of the previous medium-term management plan for the three years through March 31, 2014,
the management objectives of which were to aim for top quality in strategic business areas and to establish a solid financial base and corporate infrastructure to meet the challenges of financial regulations and the highly competitive environment,
we and the Bank announced in May 2014 our vision for the next decade and the new management goals for the three-year medium-term management plan through March 2017.

Vision for the Next Decade

Our vision for the next decade, in view of the
changing business environment, including the growth of Asias emerging countries, the aging and shrinking Japanese population and global financial regulatory reform, is to become a global financial group that, by earning the highest trust of
our customers, lead the growth of Japan and the Asian region. Specifically, we aim to achieve the following three points.

We aim to become a truly Asia-centric institution. Strengthening our business in Asia is the key strategy for realizing our vision
in view of the high medium- to long-term growth potential of Asias emerging countries. We will proactively invest our resources in the region in order to become a leading financial group in Asia.

We aim to develop the best-in-class earnings base in Japan. Japan is a mature market but there are opportunities within the market
segments and we aim to proactively contribute to the revitalization of the Japanese economy by investing our resources in such growth areas and taking appropriate risks. At the same time, we intend to capture a high market share and build a solid
earnings base by implementing specific strategies for enhancing our capability to meet our clients needs.



29



---

##### Table of Contents

We aim to realize true globalization and continue to evolve our business model. We
intend to expand our global franchise and implement measures to realize the true globalization of our corporate infrastructure that supports our growth. At the same time, we intend to continue to evolve our business model by anticipating changes in
our business environment, both domestic and international.

Three-Year Management Goals

In the three years ending March 2017, we aim to further evolve our client-centric business models, revise our portfolio structure, and
enhance our client base with speed in order to achieve the sustainable growth of our top-line profit and further increase our enterprise value. We also set the following four goals for our three-year medium-term management plan as the first step
toward realizing our vision.

Develop and evolve client-centric business models for main domestic and international
businesses. The needs of our clients are becoming more diverse and sophisticated, and we are implementing a number of initiatives to meet their needs. We have revised our client segmentation and are implementing strategies and evolving business
models accordingly, and allocating resources from the perspective of group optimization.



| |  |  | Large corporate business strategy. The activities of our large corporate clients are becoming more global, and cross-border, and accordingly,
their financial needs are becoming bigger and more complex. We are creating a unique business model, Global-Corporate and Investment Banking (G-CIB) model, to meet their needs, thereby enhancing
our client base and top-line profit.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Middle market and small and medium-sized enterprise business strategy. In the middle and small and medium-sized enterprise markets, where we
have a number of strengths, we have revised the client segmentation and grouped clients based on attributes in order to fully meet the financial needs of each individual company. Further, under the newly launched Area system, we aim to
comprehensively address needs of business owners both as corporate managers and as individuals, through one-stop-services.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Consumer banking business strategy. The financial needs of individuals are changing, under the circumstances of the accelerated shift from
savings to investment, the arrival of the great era of inheritance, and changing lifestyles. We intend to meet their needs by implementing strategies based on a new client segmentation on a Group-wide basis and achieve the top business base in
Japan.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Consumer finance and credit card business strategy. In the consumer finance business, we aim to expand the variety of our client base and
achieve an overwhelming share in the domestic market through the integrated operation of the planning and promotion functions of SMBC and SMBC Consumer Finance. In the credit card business, we intend to reinforce our top-line profit by leveraging
the strengths of Sumitomo Mitsui Card and Cedyna as bank-based and retail-based credit card companies, respectively. At the same time, we intend to pursue cost synergies by managing the business on a group basis through measures such as integrating
the management platforms of the Groups credit card companies.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | International business strategy. In our international business, we intend to shift our business model in order to achieve sustainable growth by
improving the efficiency of assets while depending less on lending volume. At the same time, we intend to enhance our global franchise. Specifically, we aim to strengthen multi-faceted transactions with globally operating non-Japanese corporate
clients. To this end, we are enhancing our product line-up and promoting cross-selling by strengthening the transaction banking business, and revising our client coverage to a more global-based framework. Further, we will create a highly profitable
asset portfolio by diversifying and flexibly rebalancing our portfolio.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Institutional investor business strategy. We intend to create a new business model to meet the needs of institutional investors by establishing
a Group-wide framework, centered on the Bank and SMBC Nikko Securities, enhancing our ability to provide products to institutional investors and strengthening our capability to source, underwrite and distribute deals domestically and
internationally.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



30



---

##### Table of Contents

| |  |  | IT and transaction banking business strategy. Information and communication technology (ICT) and transaction banking business are
necessary underpinnings for creating new businesses, and we intend to offer new leading-edge services through various measures, including alliances with leading players in ICT.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Build a platform for realizing Asia-centric operations and capture growth opportunities. We aim to become a global financial group
that, by earning the highest trust of our customers, leads the growth of Japan and the Asian region. This is our vision for the next decade and, to this end, we aim to steadily create a business platform in Asia, with the enhancement of our Asia
business as the principal strategy for the whole group, and prioritize the allocation of resources, including human resources and infrastructure, to Asia.

Realize sustainable growth of top-line profit while maintaining soundness and profitability. Underpinned by the stable financial base built during the previous years, we intend to focus more on
growth in the three-year medium-term management plan. We intend to achieve sustainable growth of our top-line profit by developing and evolving our business models and allocating resources to growth fields while continuing to focus on maintaining
soundness and profitability.

Upgrade corporate infrastructure to support our next stage of growth. Our business is
expanding globally and on a Group-wide basis, and we intend to strengthen our management platform to support our business growth. Specifically, we intend to globalize our organization and human resources and intensify group management. To this end,
we recently established Global Human Resources Department. We also recently established Diversity and Inclusion Committee to promote diversity as we believe diversity is a source of competitiveness. We are also upgrading our
risk management system.

Our basic policies for the fiscal year ending March 31, 2017, the final year of the three-year
medium-term management plan, are as follows: focus on bottom-line profit by strengthening efforts to improve profitability and efficiency, while maximizing efforts to realize the key initiatives set in the medium-term management plan and grow
our top line profit and run a strict risk-sensitive operation given the current uncertain business environment, while pursuing new business opportunities by responding to changes in a proactive and innovative manner.

Revenues by Region

The
following table sets forth the percentage of our total operating income under IFRS for the fiscal years ended March 31, 2016, 2015, and 2014, based on the total operating income of our offices in the indicated regions. For each of the periods
presented, we earned three-quarters of our total operating income in Japan, where we compete with other major Japanese banking groups and financial service providers. We earned the remainder in the Americas, Europe and Middle East, and Asia and
Oceania, where we mainly compete with global financial institutions.



|                                   |  |                                     |     |   |      |  |     |      |  |  |     |  
|---------------------------------- |  | ----------------------------------- | --- | - | ---- |  | --- | ---- |  |  | --- | -
|                                   |  | For the fiscal year ended March 31, |    
|                                   |  | 2016                                |     |   | 2015 |  |     | 2014 | 
|Region:                            |  |                                     |     |   |      |  |     |      |  |  |     |  
|Japan                              |  |                                     | 77  | % |      |  | 76  | %    |  |  | 78  | %
|Foreign:                           |  |                                     |     |   |      |  |     |      |  |  |     |  
|Americas                           |  |                                     | 5   | % |      |  | 5   | %    |  |  | 6   | %
|Europe and Middle East             |  |                                     | 10  | % |      |  | 11  | %    |  |  | 9   | %
|Asia and Oceania (excluding Japan) |  |                                     | 8   | % |      |  | 8   | %    |  |  | 7   | %
|                                   |  |                                     |     |   |      |  |     |      |  |  |     |  
|Total                              |  |                                     | 100 | % |      |  | 100 | %    |  |  | 100 | %
|                                   |  |                                     |     |   |      |  |     |      |  |  |     |  



31



---

##### Table of Contents

Seasonality

Our business is not materially affected by seasonality.

Sources and Availability of Raw
Materials

We are not reliant on any particular source of raw materials.

Marketing Channels

See
Description of Operations and Principal Activities for a discussion of our marketing channels.

Regulations in Japan

Our businesses are subject to extensive regulation, including the effects of changes in the laws, regulations, policies,
voluntary codes of practice and interpretations in Japan. On the other hand, deregulation of banking activities in Japan, and more generally of the Japanese financial system, has proceeded, which has made the Japanese banking industry highly
competitive.

Supervisory and regulatory authorities

Pursuant to the Banking Act, the FSA has the authority in Japan to supervise banks, bank holding companies and banks principal
shareholders, meaning bank shareholders having 20% (or 15% in some cases) or more of the voting rights of a bank. The BOJ also has supervisory authority over banks in Japan based primarily on its contractual agreements and transactions with Japanese
banks. Only companies licensed by the Prime Minister are defined as banks under the Banking Act, and licenses may be granted only to a kabushiki kaisha, a joint stock corporation, with paid-up capital of ¥2 billion or more.

The Financial Services Agency of Japan

The Prime Minister has supervisory authority over banks in Japan, which is generally delegated to the Financial Services Agency of Japan (FSA) except for matters prescribed by cabinet order.
The Minister for Financial Services has the power to direct the FSA. Under the Banking Act, the FSA has supervisory control over banks, bank holding companies and banks principal shareholders in Japan, except for matters to which the Prime
Minister retains authority.

The FSAs authority includes granting and revoking of operating licenses, and approving
business activities such as becoming a principal shareholder, establishment of subsidiaries or overseas offices, mergers, corporate splits or business transfers, and dissolutions or discontinuations of business by existing banks, etc.

The FSA may also instruct a Japanese bank to suspend its business or to remove directors if the bank violates laws, other regulations or
their articles of incorporation or commits acts contrary to public policy. The FSA may also direct a Japanese bank in financial difficulty to take certain actions, such as holding certain property in Japan for the protection of depositors. Under the
prompt corrective action (PCA) system, the FSA may take corrective actions in the case of capital deterioration of financial institutions.

The Ministry of Finance and the FSA have introduced a number of regulatory measures into the banking sector in Japan to secure sound management of banks, as well as measures to increase the transparency
of the regulatory process, such as bank holding company regulations, single customer credit limits, disclosure regulations, regulations regarding reserves for loan losses and inspections.

The Banking Act authorizes the FSA to inspect banks and bank holding companies in Japan at any time and with any frequency. Such
inspections are conducted by officials from the FSAs Inspection Department. The



32



---

##### Table of Contents

FSA monitors the financial soundness of banks and the status and performance of their control systems and reviews their compliance with laws and regulations. The FSA has issued guidelines on its
inspection of financial institutions called the Financial Inspection Manual. The Financial Inspection Manual itself does not have the force of law, but the FSAs inspections of banks are based on the Financial Inspection Manual, which
emphasizes the need for bank self-assessment rather than assessment based on the advice of the government authority and risk management by each bank instead of a mere assessment of its assets. Following an inspection, the FSA may exercise its
authority over a bank under the Banking Act to suspend or terminate its banking business.

The Ministry of Finance

The Ministry of Finance conducts examinations of banks in relation to foreign exchange transactions under the Foreign
Exchange and Foreign Trade Act.

The Bank of Japan

The Bank of Japan (BOJ) is the central bank of Japan and serves as the principal instrument for the execution of Japans
monetary policy. The BOJ implements monetary policy mainly by adjusting its basic loan rate, open market operations and imposing deposit reserve requirements. All banks in Japan maintain deposits with the BOJ and rely substantially upon obtaining
borrowings from and rediscounting bills with the BOJ. Moreover, most banks in Japan maintain current accounts under agreements with the BOJ pursuant to which the BOJ can conclude a contract with the Bank concerning on-site examinations. BOJ
supervision is intended to support the effective execution of monetary policy, while FSA supervision aims to maintain the sound operations of banks in Japan and promote the security of depositors. Through its examinations, the BOJ seeks to identify
problems at an early stage and give corrective guidance where necessary.

Regulations Regarding Capital Adequacy and
Liquidity

Capital Adequacy Requirement

In 1988, the BCBS issued the Basel Capital Accord. The Basel Capital Accord sets minimum risk-weighted capital ratios for the purpose of maintaining sound management of banks which have international
operations. The minimum risk-weighted capital ratio required was 8% on both a consolidated and nonconsolidated basis. In 2004, the BCBS issued the amended Basel Capital Accord (Basel II), which includes detailed measurement of credit
risk, the addition of operational risk, a supervisory review process and market discipline through disclosure. These amendments did not change the minimum risk-weighted capital ratio of 8% applicable to banks with international operations (including
the Bank). These rules took effect in Japan in 2007, and since 2008, banks are able to apply the advanced IRB approach for credit risk and the AMA for operational risk.

In July 2009, the BCBS approved a final package of measures to enhance certain elements of the Basel II framework, which includes an increase of the risk weights of resecuritization instruments and
revisions of certain trading book rules (referred to as Basel 2.5), and the FSAs capital adequacy guidelines which reflect such framework have been applied in Japan from December 2011.

In September 2009, the Group of Central Bank Governors and Heads of Supervision (the GHOS) reached an agreement on several
key measures to strengthen regulation of the banking sector, and in December 2009 the BCBS published a consultative document entitled Strengthening the resilience of the banking sector containing proposals on these measures centering on
several core areas. The BCBS proposals focused on raising the quality, consistency and transparency of the regulatory capital base through measures including a requirement that the predominant form of Tier 1 capital must be common shares and
retained earnings; limitations on the use of hybrid instruments with an incentive to redeem; a requirement that regulatory adjustments, including deductions of the amount of net deferred tax assets which rely on the future profitability of a bank,
be applied to common equity generally; and a requirement for additional disclosure regarding regulatory capital levels.



33



---

##### Table of Contents

The BCBS proposals also cover the following key areas:



| |  |  | strengthening the risk coverage of the capital framework;
| | - |  | ---------------------------------------------------------



| |  |  | introducing a leverage ratio as a supplementary measure to the Basel II risk-based framework with a view to migrating to a Pillar 1 (minimum capital
requirement) treatment based on appropriate review and calibration (for further information, see Leverage Ratio below);
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | introducing measures to promote the build-up of capital buffers in good times that can be drawn upon in periods of stress; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------



| |  |  | introducing minimum liquidity standards for internationally active banks that include a 30-day liquidity coverage ratio requirement underpinned by a
longer-term structural liquidity ratio (for further information, see Liquidity Requirement below).
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In July 2010, the GHOS reached a broad agreement on the overall design of the BCBS capital and liquidity reform package. In addition, in August 2010, the BCBS issued for consultation a proposal to
enhance the loss absorbency function of regulatory capital. In September 2010, the GHOS announced a substantial strengthening of existing capital requirements. The framework of the proposed reform was endorsed by the G-20 leaders at their Seoul
summit in November 2010. These capital reforms increased the minimum common equity requirement from 2% to 4.5% and will require banks to hold a capital conservation buffer of 2.5% to withstand future periods of stress, bringing the total common
equity requirement to 7%. The Tier 1 capital requirement also increased from 4% to 6% (increasing to 8.5% when included together with the above capital conservation buffer). The total capital requirement remains at 8% but will increase to 10.5% with
the capital conservation buffer by January 2019. In addition, a countercyclical buffer within a range of 0% to 2.5% of common equity or other fully loss-absorbing capital has been implemented according to national circumstances. The GHOS also agreed
on transitional arrangements for implementing the new standards. Under the transitional arrangements, these new capital requirements are being phased in between January 1, 2013 and January 1, 2019. In December 2010, the BCBS published the new Basel
III rules text. To reflect changes made by the BCBS, the FSA changed its capital adequacy guidelines. The FSAs changes have mostly been applied from March 31, 2013, which generally reflect the main measures of the minimum capital requirements
of the BCBS that started to be phased in on January 1, 2013 and will be fully applied from March 2019. The FSAs changes which reflect capital buffer requirements under Basel III and the G-SIFI capital surcharge described below have been
applied from March 31, 2016.

In September 2013, the BCBS and the International Organization of Securities Commissions
(IOSCO) released the final framework for margin requirements for non-centrally cleared derivatives (2013 framework). This framework will require high quality liquid assets to be posted as margin on non-centrally cleared
derivative transactions, which could adversely affect our liquidity position. The requirements were originally planned to be phased in over a four-year period beginning in December 2015 with the largest, most active and most systemically important
participants in the derivatives market, including us. In March 2015, the BCBS and IOSCO released revisions to the 2013 framework, which delay the beginning of the phase-in period for collecting and posting initial margin on non-centrally cleared
trades from December 2015 to September 2016. The full phase-in schedule has been adjusted to reflect this nine-month delay. The revisions also institute a six-month phase-in period of the requirement to exchange variation margin, beginning in
September 2016.

In addition to the above-mentioned minimum capital requirements and capital buffer requirements under Basel
III, organizations identified by the FSB as G-SIFIs, which as of November 2014 and 2015 included us, are required to maintain an additional 1% to 2.5% of common equity as a percentage of risk-weighted assets based on the organizations size,
interconnectedness, substitutability, complexity and cross-jurisdictional activity as determined by the FSB. This requirement is commonly referred to as the G-SIFI capital surcharge. The G-SIFI capital surcharge requirement is being phased in from
January 2016 to January 2019. The amount of G-SIFI capital surcharge that applies to us based on the FSBs determination as of November 2014 and 2015 will be 1% of risk-weighted assets when the requirement is fully applied from 2019. The FSB
updates its list of G-SIFIs on an annual basis.



34



---

##### Table of Contents

G-SIFIs will also be subject to a global standard for TLAC, which establishes a minimum
requirement for loss-absorbing and recapitalization capacity available in resolution at G-SIFIs, to ensure that they can be resolved in an orderly manner without putting public funds at risk. In November 2015, as part of its agenda to address risks
arising from G-SIFIs, the FSB published the final TLAC standard. The final TLAC standard defines certain minimum requirements for instruments and liabilities so that if a G-SIFI fails, it will have sufficient loss-absorbing and recapitalization
capacity available to ensure that it can be resolved in an orderly manner which minimizes potential impact on financial stability, maintains the continuity of critical functions and avoids exposing public funds to loss. In addition, in April 2016,
the FSA published a paper entitled The FSAs Approach to Introduce the TLAC Framework (FSAs Approach) which describes the FSAs approach for the introduction of TLAC requirements in Japan, although it remains
subject to change based on future international discussions. According to the FSAs Approach, the preferred resolution strategy for G-SIFIs in Japan is Single Point of Entry resolution, in which resolution powers are applied to the top-level
entity of a banking group by a single national resolution authority, although the actual measures to be taken will be determined on a case-by-case basis considering the actual condition of the relevant Japanese G-SIFI in crisis. To implement this
Single Point of Entry resolution strategy effectively, the FSA plans to require bank holding companies of Japanese G-SIFIs, which will be the resolution entities, to (i) meet the minimum external TLAC
requirements provided under the FSBs TLAC standard (being at least 16% of their risk-weighted assets starting from March 2019 and at least 18% of their risk-weighted assets starting from March 2022), and (ii) cause their material subsidiaries
that are designated as systemically important by the FSA, including but not limited to certain material sub-groups as provided in the FSBs TLAC standard, to maintain a certain level of capital and debt recognized by the FSA as internal TLAC,
in order that losses incurred at the material sub-group can be absorbed by the bank holding company through such internal TLAC with the involvement of the FSA. In addition, according to the FSAs Approach, Japanese G-SIFIs are expected to be
allowed to count the Japans deposit insurance fund reserves in an amount equivalent to 2.5% of their risk-weighted assets from March 2019 and 3.5% of their risk-weighted assets from March 2022 as external TLAC.

The final TLAC standard also prescribes a minimum TLAC requirement of at least 6% of the resolution groups Basel III leverage ratio
denominator starting from March 2019, increasing to at least 6.75% starting from March 2022, and according to the FSAs Approach, the same external TLAC requirements on the leverage ratio basis are planned to be required for bank holding
companies of Japanese G-SIFIs. The leverage ratio-based minimum TLAC requirement does not require application of any capital buffers. As a G-SIFI, we will be subject to the final TLAC standard, as implemented in Japan.

Furthermore, as a disincentive for G-SIFIs facing the maximum G-SIFI capital surcharge to increase materially their global systemic
importance in the future, an additional 1% capital surcharge could be applied. So long as we are identified as a G-SIFI, we are also subject to stronger supervisory mandates and higher supervisory expectations for risk management functions,
data aggregation capabilities, risk governance and internal controls. The substance of this heightened supervision has not yet been fixed, but we anticipate that at a minimum any rules will contain more stringent reporting requirements and impose
common frameworks for data aggregation and internal risk management processes on G-SIFIs.

Because we have been identified as
a G-SIFI, we are also subject to, among other things, resolution-related requirements described in the FSBs Key Attributes of Effective Resolution Regimes for Financial Institutions. In particular, the FSB has required the initial
group of G-SIFIs to have in place a recovery and resolution plan, including a group-level plan, containing various specified elements, to be subject to regular resolvability assessments. Under the Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc., issued by the FSA, as part of crisis management, financial institutions identified as G-SIFIs must prepare and submit a recovery plan, which includes a description of events that would trigger
implementation of the recovery plan and the analysis of the recovery options to the FSA, and the FSA must prepare the resolution plan for each G-SIFI.



35



---

##### Table of Contents

In December 2014, the BCBS published a consultative document on the design of a capital
floor framework which will replace the current transitional floor based on the Basel I standard with a capital floor based on the Basel II/III standard. The proposed framework will be based on the finalized version of the standardized approach,
which is also being revised. The GHOS is planning to review the BCBS proposals on the design and calibration of capital floors at or around the end of 2016.

In April 2016, the BCBS issued standards for interest rate risk in the banking book (IRRBB) which adopts an enhanced Pillar 2 approach for IRRBB. The standards revise the BCBS guidance
set out in its 2004 Principles for the management and supervision of interest rate risk, which lays out the BCBS expectations for banks identification, measurement, monitoring and control of IRRBB as well as the banks supervision,
to reflect changes in market and supervisory practices since the principles were first published in 2004. The revised standards are expected to be implemented by 2018.

Our securities subsidiaries in Japan are also subject to capital adequacy requirements under the FIEA. Under the requirements, securities firms must maintain a minimum capital adequacy ratio of 120% on a
nonconsolidated basis and must file periodic reports with the Commissioner of the FSA or the Director-General of the appropriate Local Finance Bureau, and also publicly disclose their capital adequacy ratio on a quarterly basis. Failure to meet the
capital adequacy requirements will trigger mandatory regulatory action. For example, a securities firm with a capital adequacy ratio of greater than 120%, but less than 140% will be required to file daily reports with the Commissioner of the FSA or
the Director-General of the appropriate Local Finance Bureau. A securities firm with a capital adequacy ratio of less than 120% may be ordered to change its business conduct, place its property in trust or be subject to other supervisory orders, as
the relevant authorities deem appropriate. A securities firm with a capital adequacy ratio of less than 100% may be subject to temporary suspension of all or part of its business operations or cancellation of its license to act as a securities
broker and dealer.

The capital adequacy ratio for securities firms is defined as the ratio of adjusted capital to a
quantified total of business risks, which include market risks, counterparty risks and operational risks (e.g., risks in carrying out daily business activities, such as administrative problems with securities transactions and clerical mistakes)
quantified in the manner specified by a rule promulgated under the FIEA. Adjusted capital is defined as net worth less illiquid assets, as determined in accordance with Japanese GAAP. Net worth consists mainly of stated capital, additional paid-in
capital, retained earnings, reserves for securities transactions, certain allowances for doubtful current accounts, net unrealized gains (losses) in the market value of investment securities, and subordinated debt. Illiquid assets generally include
non-current market assets, certain deposits and advances, and prepaid expenses.

In May 2010, the FIEA was amended,
introducing a minimum capital adequacy requirement on a consolidated basis applicable to securities firms whose total assets exceed ¥1,000 billion. This requirement on a consolidated basis is applied in addition to and in a manner similar to the
requirements on a nonconsolidated basis referred to above. These amendments became effective from April 2011.

Leverage
Ratio

In March 2015, the FSA published its leverage ratio guidelines which have been applied from March 31, 2015 to help
ensure broad and adequate capture of both on- and off-balance sheet sources of leverage for internationally active banks. The FSAs leverage ratio guidelines are based on the text of the leverage ratio framework and disclosure requirements
issued by the BCBS in January 2014. Any final adjustments to the definition and calibration of the leverage ratio were scheduled to be made by the BCBS by 2017, with a view to migrate to a Pillar 1 treatment on January 1, 2018, based on appropriate
review and calibration.

In January 2016, the GHOS agreed that the leverage ratio should be based on a Tier 1 definition of
capital and should comprise a minimum level of 3%, and the GHOS discussed additional requirements for G-SIFIs. The GHOS is planning to finalize the calibration in 2016 to allow sufficient time for the leverage ratio to be implemented as a Pillar 1
measure by January 1, 2018.



36



---

##### Table of Contents

Liquidity Requirement

In October 2014, the FSA published its guidelines for liquidity coverage ratio (LCR) applicable to banks with international
operations that have been applied from March 31, 2015. These guidelines are based on the full text of the LCR standard issued by the BCBS in January 2013. LCR is intended to promote resilience to potential liquidity disruptions over a thirty-day
horizon and help ensure that global banks have sufficient, unencumbered, high-quality liquid assets to offset the net cash outflows they could encounter under an acute short-term stress scenario. Under the FSAs LCR guidelines, banks with
international operations must maintain LCR of 100% on both a consolidated basis and a nonconsolidated basis, while the minimum LCR requirements are being phased in between March 31, 2015 and March 31, 2019 with an increase of 10% in each year
starting from 60%.

In October 2014, the BCBS issued the final standard for the net stable funding ratio (NSFR),
which requires a minimum amount of stable sources of funding at a bank relative to the liquidity profiles of the banks assets, as well as the potential for contingent liquidity needs arising from off-balance sheet commitments, over a one-year
horizon. NSFR is scheduled to be introduced as a minimum standard by January 1, 2018.

Self-Assessment, Reserves and
Related Disclosure

Financial institutions, including the Bank, are required to establish self-assessment programs to,
among other things, analyze their assets giving due consideration to accounting principles and other applicable rules and to classify their assets into categories taking into account the likelihood of repayment and the risk of impairment to the
value of the assets. These classifications determine whether an addition to or reduction in reserves or write-offs is necessary.

Pursuant to the Japanese Institute of Certified Public Accountants (JICPA) guidelines, the outcome of each financial institutions self-assessment leads to substantially all of a
banks loans and other claims on customers being analyzed by classifying obligors into five categories: (1) normal borrowers; (2) borrowers requiring caution; (3) potentially bankrupt borrowers; (4) effectively bankrupt borrowers; and (5)
bankrupt borrowers. The reserve for possible loan losses is then calculated based on the obligor categories.

FSA guidelines
require banks to classify their assets not only by the five categories of obligor but also by four categories of quality. The Bank has adopted its own internal guidelines for self-assessment which conform to guidelines currently in effect and comply
with the PCA system requirements.

Based on the results of the self-assessment discussed above, the Bank is required to
establish a reserve for its loan portfolio in an amount the Bank considers adequate at a balance sheet date. Three categories of reserves the Bank establishes, for statutory purposes, along with the Accounting Standards for Banks issued by the
Japanese Bankers Association, are a general reserve, a specific reserve and a reserve for specific overseas loan losses.

Under the Banking Act, banks and bank holding companies must disclose their non- and under-performing loans (consolidated and
nonconsolidated) as risk-monitored loans. Risk-monitored loans are classified into four categories: (1) bankrupt loans, (2) non-accrual loans, (3) past due loans (three months or more) and (4) restructured loans. Banks and bank holding companies are
required to submit to the FSA annual reports on their business including the amount of risk-monitored loans. Banks and bank holding companies must disclose their financial statements on an annual basis. The financial statements consist of the
balance sheet and income statement, and explanatory documents regarding business and asset conditions, each prepared under the Banking Act both on a nonconsolidated and consolidated basis.

Independent of the Banking Act disclosure regulations, the Act Concerning Emergency Measures for the Revitalization of Financial
Functions requires banks to disclose their loans and their other problem assets. Under this law, assets are classified into four categories: (1) bankrupt and quasi-bankrupt assets, (2) doubtful assets,



37



---

##### Table of Contents

(3) substandard assets and (4) normal assets. Generally, bankrupt and quasi-bankrupt assets correspond to the total of bankrupt loans and the lower tier of the non-accrual loans (the
borrowers of which are effectively bankrupt) under the Banking Act disclosure. Doubtful assets generally correspond to the higher tier portion of the non-accrual loans (the borrowers of which are not, but have the potential to become, bankrupt). The
substandard assets generally correspond to the total of the restructured loans and past due loans (three months or more). Bankrupt and quasi-bankrupt assets and doubtful assets also include non-loan assets, for example, securities lending, foreign
exchange, accrued interest, advanced payments and customers liabilities for acceptances and guarantees.

Prompt
Corrective Action System

Under the Prompt Corrective Action (PCA) system, the FSA may take corrective actions
depending upon the extent of capital deterioration of a financial institution. The FSA may require a bank to submit and implement a capital reform plan, if;



| |  |  | the total risk-weighted capital ratio of a bank with international operations becomes less than 8% but not less than 4%;
| | - |  | ------------------------------------------------------------------------------------------------------------------------



| |  |  | the Common Equity Tier 1 risk-weighted capital ratio becomes less than 4.5% but not less than 2.25%; or
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | the Tier 1 risk-weighted capital ratio becomes less than 6% but not less than 3%.
| | - |  | ---------------------------------------------------------------------------------

The FSA may order a bank to (1) submit and implement a plan for improving its capital; (2) prohibit or restrict the payment of dividends
to shareholders or bonuses to officers; (3) reduce assets or restrict any increase in assets; (4) prohibit or restrict the acceptance of deposits under terms less advantageous than ordinary terms; (5) reduce the business of some offices; (6)
eliminate some offices other than the head office; (7) reduce or prevent the launching of non-banking businesses; or (8) take certain other actions, if;



| |  |  | the total risk-weighted capital ratio of a bank with international operations declines to less than 4% but not less than 2%;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | the Common Equity Tier 1 risk-weighted capital ratio becomes less than 2.25% but not less than 1.13%; or
| | - |  | --------------------------------------------------------------------------------------------------------



| |  |  | the Tier 1 risk-weighted capital ratio becomes less than 3% but not less than 1.5%.
| | - |  | -----------------------------------------------------------------------------------

The FSA may order a bank to conduct any one of the following: (1) a capital increase; (2) a substantial reduction in its business; (3) a
merger; or (4) abolishment of its banking business, if;



| |  |  | the total risk-weighted capital ratio of a bank with international operations declines to less than 2% but not less than 0%;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | the Common Equity Tier 1 risk-weighted capital ratio becomes less than 1.13% but not less than 0%; or
| | - |  | -----------------------------------------------------------------------------------------------------



| |  |  | the Tier 1 risk-weighted capital ratio becomes less than 1.5% but not less than 0%.
| | - |  | -----------------------------------------------------------------------------------

The FSA may order the bank to suspend all or part of its business, if the total risk-weighted capital ratio, the Common Equity Tier 1
risk-weighted capital ratio or Tier 1 risk-weighted capital ratio of a bank with international operations declines below 0%.

The FSA may take actions similar to the actions the FSA may take with respect to a bank, if;



| |  |  | the total risk-weighted capital ratio of a bank holding company that holds a bank with international operations declines to levels below 8%;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



38



---

##### Table of Contents

| |  |  | the Common Equity Tier 1 risk-weighted capital ratio declines to levels below 4.5%; or
| | - |  | --------------------------------------------------------------------------------------



| |  |  | the Tier 1 risk-weighted capital ratio declines to levels below 6%.
| | - |  | -------------------------------------------------------------------

Prompt Warning System

The prompt warning system currently in effect allows the FSA to take precautionary measures to maintain and promote the sound operation of financial institutions before those financial institutions become
subject to the PCA system. These measures include requiring a financial institution to reform: (1) profitability, if deemed necessary to improve profitability based upon a fundamental profit index; (2) credit risk management, if deemed necessary to
reform management of credit risk based upon the degree of large credit concentration and other circumstances; (3) stability, if deemed necessary to reform management of market and other risks based upon, in particular, the effect of securities price
fluctuations; and (4) cash flow management, if deemed necessary to reform management of liquidity risks based upon deposit trends and level of reserve for liquidity.

Restrictions on Capital Distributions

Under the FSAs capital
adequacy guidelines and related ordinances, if a bank fails to maintain capital levels under the capital buffer requirements in accordance with Basel III and the G-SIFI capital surcharge, the FSA may order a bank to submit and implement a reasonable
capital distribution constraint plan to restore the capital levels. This plan shall include restrictions on capital distributions, such as dividends, share buybacks, discretionary payments on other Tier 1 capital instruments and bonuses, in such
amount as determined depending on the degree of insufficiency of such requirements.

Regulations for Stabilizing the
Financial System

Deposit Insurance System

The Deposit Insurance Act was enacted to protect depositors when deposit-taking institutions fail to meet their obligations. The Deposit
Insurance Corporation of Japan (DIC) implements the law and is supervised by the Prime Minister and the Minister of Finance. Subject to limited exceptions, the Prime Ministers authority is delegated to the FSA Commissioner.

From April 2011 to March 2014, the DIC received annual insurance premiums from member deposit-taking financial institutions,
amounting to 0.107% of deposits that bear no interest, are redeemable upon demand and are used by depositors primarily for payment and settlement purposes, and 0.082% of other deposits. From April 2014, they amounted to 0.108% and 0.081%,
respectively. For the fiscal years ended March 31, 2013 through 2015, a certain amount was reimbursed to the member institutions each fiscal year because there were no failures of insured deposit-taking financial institutions. From April 2015,
annual insurance premiums amounted to 0.054% of deposits primarily for payment and settlement purposes and 0.041% of deposits for other deposits.

Premiums held by the DIC may be either deposited at deposit-taking institutions or used to purchase marketable securities. The insurance money may be paid out to depositors in case of a suspension of
repayments of deposits, banking license revocation, dissolution or bankruptcy of a bank. Payouts are generally limited to a maximum of ¥10 million of principal amount together with any interest accrued with respect to each depositor. Only
non-interest-bearing deposits that are redeemable upon demand and used by depositors primarily for payment and settlement functions are protected in full.

City banks (including the Bank), regional banks (including member banks of the second association of regional banks), trust banks, credit associations, credit cooperatives, labor banks and Japan Post Bank
participate in the deposit insurance system on a compulsory basis.

The Deposit Insurance Act also provides a permanent system
for resolving failed deposit-taking institutions.



39



---

##### Table of Contents

The basic method for resolving a failed deposit-taking institution under the Deposit
Insurance Act is cessation of the business by paying insurance money to depositors up to the principal amount of ¥10 million plus accrued interest per depositor, or pay-off or transfer of the business to another deposit-taking institution, with
financial assistance provided within the cost of pay-off. Under the Deposit Insurance Act, transfer of business is regarded as the primary method. In order to affect a prompt transfer of business, the following framework has been established:



| |  |  | a Financial Reorganization Administrator is appointed by the FSA Commissioner and takes control of the management and assets of the failed
deposit-taking institution. The administrator is expected to diligently search for a deposit-taking institution which will succeed to the business of the failed institution;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | if no successor deposit-taking institution can be immediately found, a bridge bank will be established by the DIC for the purpose of
temporarily maintaining the operations of the failed deposit-taking institution, and the bridge bank will seek to transfer the failed deposit-taking institutions assets to another deposit-taking institution or dissolve the failed
deposit-taking institution; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | in order to facilitate or encourage a deposit-taking institution to succeed to a failed business, financial aid may be provided by the DIC to any
successor deposit-taking institution to enhance its capital after succession or to indemnify it for losses incurred as a result of the succession.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Where it is anticipated that the failure of a deposit-taking institution may cause an extremely grave problem in maintaining the financial order in Japan or the region where the deposit-taking institution
is operating, the following exceptional measures may be taken following deliberation by Japans Financial Crisis Response Council:



| |  |  | the DIC may subscribe for shares or other instruments issued by the relevant deposit-taking institution or the holding company thereof and require the
institution to submit to the DIC a plan to reestablish sound management (Item 1 measures) (dai ichigo sochi);
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | once the deposit-taking institution fails, financial aid exceeding the cost of pay-off may be available to the institution (Item 2 measures) (dai
nigo sochi); and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | if the failed institution is a bank and the problem cannot be avoided by other measures, then the DIC may acquire all of the shares of the bank (Item 3
measures) (dai sango sochi).
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In order to fund the above-mentioned activities, the DIC may borrow
from financial institutions or issue bonds which may be guaranteed by the Government of Japan.

In addition, on June 12, 2013,
a bill to amend the Deposit Insurance Act which includes establishment of a new orderly resolution regime of financial institutions was enacted and became effective on March 6, 2014. Financial institutions including banks, securities companies and
insurance companies and their holding companies will be subject to the new resolution regime that includes, among others, the following features.

Under the new resolution regime, where the Prime Minister recognizes that the failure of a financial institution which falls into either of (a) or (b) below may cause significant disruption in the
financial markets or other financial systems in Japan if measures described in (a) (specified Item 1 measures) (tokutei dai ichigo sochi) or measures described in (b) (specified Item 2 measures) (tokutei dai nigo sochi) are not taken,
the Prime Minister may confirm that any of the following measures need to be applied to the financial institution following deliberation by Japans Financial Crisis Response Council:

(a) if the financial institution is not a financial institution whose liabilities exceed its assets, which means it is unable to fully
perform its obligations with its assets, the DIC shall supervise the operation of business and management and disposal of assets of that financial institution, and may provide it with loans or guarantees necessary to avoid the risk of significant
disruption in the financial systems in Japan, or subscribe for shares or subordinated bonds of, or lend subordinated loans to, the financial institution, taking into consideration the financial condition of the financial institution;



40



---

##### Table of Contents

(b) if the financial institution is a financial institution whose liabilities exceed or are
likely to exceed its assets or which has suspended or is likely to suspend payment of its obligations, the DIC shall supervise the operation of business and management and disposal of assets of that financial institution and may provide financial
aid necessary to assist a merger, business transfer, corporate split or other reorganization in respect to such failed financial institution; and

if a measure set out in (b) above is determined to be taken with respect to a financial institution, the Prime Minister may order that the financial institutions operations of business and
management and disposal of assets be placed under the special control of the DIC. The business or liabilities of the financial institution subject to the special supervision by the DIC as set forth above may also be transferred to a bridge
bank established by the DIC for the purpose of the temporary maintenance and continuation of operations of, or repayment of the liabilities of, such financial institution, and the bridge bank will seek to transfer the financial
institutions business or liabilities to another financial institution or dissolve the financial institution. The financial aid provided by the DIC to assist a merger, business transfer, corporate split or other reorganization in respect to the
financial institution set out in (b) above may take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption of debts, subscription of preferred stock or subordinated bonds, subordinated loan, or loss
sharing.

The expenses for implementation of the measures for these crisis management operations will be borne by the
financial industry; provided, however, the Government of Japan may provide subsidies to the DIC within the limit to be specified in the government budget in cases where it is likely to cause extremely serious hindrance to the maintenance of the
credit system in Japan or significant turmoil in the financial market or other financial system of Japan if such expenses are to be borne only by the financial industry.

On March 6, 2014, the FSA made an announcement clarifying the requirement of loss absorbency at the point of non-viability for additional Tier 1 instruments and Tier 2 instruments under Basel III issued
by banks and bank holding companies. According to the announcement, (i) additional Tier 1 instruments and Tier 2 instruments under Basel III issued by a bank must be written-down or converted into common shares when the Prime Minister of Japan
confirms (nintei) that the above-described Item 2 measures (dai nigo sochi), Item 3 measures (dai sango sochi), or specified Item 2 measures (tokutei dai nigo sochi) need to be applied
to the bank and (ii) additional Tier 1 instruments and Tier 2 instruments under Basel III issued by a bank holding company must be written-down or converted into common shares when the Prime Minister of Japan confirms (nintei) that the
above-described specified Item 2 measures (tokutei dai nigo sochi) need to be applied to the bank holding company. The FSA also stated in the announcement that the trigger event for loss absorbency at the point of non-viability
with respect to such instruments should be construed in accordance with the then effective financial crisis response framework for banks and bank holding companies that have failed or are likely to fail, since the purpose of such write-down or
conversion required under Basel III is to ensure that all classes of these capital instruments fully absorb losses at the point of non-viability before taxpayers are exposed to loss.

Special Measures Act Concerning Facilitation of Reorganization by Financial Institutions, Etc.

Under the Special Measures Act Concerning Facilitation of Reorganization by Financial Institutions, Etc.: (1) for one year after the
merger or transfer of the entire business of a deposit-taking institution, the maximum amount to be covered by the deposit insurance will be ¥10 million multiplied by the number of parties to the merger or business transfer; and (2) the
procedures are simplified to a certain extent in connection with the transfer of an entire business or a merger with another deposit-taking institution by a deposit-taking institution that is made in accordance with a management base-strengthening
plan that has been approved by the Government of Japan.

Single Customer Credit Limit

The Banking Act restricts the aggregate amount of credit and loans that may be extended to any single customer in order to avoid the
excessive concentration of credit risks and promote the fair and extensive use of



41



---

##### Table of Contents

bank credit. To tighten the restrictions under Japanese law to meet international standards, the Banking Act and the related cabinet order were amended in June 2013 and October 2014, respectively
and those amendments became effective in December 2014. As a result of the amendments, the credit limit of bank holding companies, banks or bank groups for any single customer, including certain of the customers affiliates, was lowered from
40% to 25% of the total qualifying capital of the bank holding company, bank or bank group, with certain adjustments.

Restrictions on Activities of a Bank Holding Company

Under the Banking Act, a bank holding company is prohibited from carrying on any business other than management of its subsidiaries and other incidental businesses. A bank holding company may have any of
the following as a subsidiary: a bank, a securities company, an insurance company or a foreign subsidiary that engages in the banking, securities or insurance business. In addition, a bank holding company may have as a subsidiary any company that
engages in finance-related business, such as a credit card company, a leasing company or an investment advisory company. Certain companies that are designated by ministerial ordinance as those that cultivate new business fields may also become the
subsidiary of a bank holding company.

An amendment to the Banking Act was promulgated in June 2016. Among other things, the
amendment (1) requires a bank holding company to enhance group management, by measures including establishment of a basic policy of such group, coordination of conflicts of interest among group companies, development of a group compliance system and
others; (2) permits a bank holding company or a group company, with prior approval of the Government of Japan, to manage certain businesses of other group companies that are common and duplicative; and (3) permits a bank or a bank holding company,
with prior approval of the government, to hold voting rights of companies conducting businesses that contribute to or are expected to contribute to the sophistication of the banking business or the enhancement of customer convenience by utilizing
information technology or other technologies, regardless of the shareholding restriction described below. The amendment is scheduled to become effective by June 2017.

Restriction on Aggregate Shareholdings by a Bank

The Act Concerning
Restriction on Shareholdings by Banks requires Japanese banks and their qualified subsidiaries to limit the aggregate market value (excluding unrealized gains, if any) of their equity securities holdings to an amount equal to 100% of their
consolidated Tier 1 capital, with adjustments, in order to reduce exposure to stock price fluctuations. Treasury shares, shares issued by subsidiaries, shares not listed on any stock exchange or not registered with any OTC market, shares held as
trust assets, and shares acquired through debt-for-equity swaps in restructuring transactions are excluded from this limitation. In order to facilitate the disposition of shares of listed stocks held by banks while preventing adverse effects caused
by sales of large amounts of shares in a short period of time, share purchases by the Banks Shareholdings Purchase Corporation of listed shares have been restarted from March 2009.

Shareholding Restrictions Applicable to a Bank Holding Company and a Bank

The provision of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade which prohibits banks from holding more
than 5% of the voting rights of non-financial companies in Japan does not apply to bank holding companies. However, the Banking Act generally prohibits a bank holding company and its subsidiaries, on an aggregated basis, from holding more than 15%
of the voting rights of certain types of companies which are not permitted to become subsidiaries of bank holding companies. Also, the Banking Act generally prohibits a bank and its subsidiaries, on an aggregated basis, from holding more than 5% of
the voting rights of certain types of companies which are not permitted to become subsidiaries of banks.



42



---

##### Table of Contents

Examination and Reporting Applicable to Shareholders of a Bank

The FSA may request the submission of reports or other materials from a bank and/or its bank holding company, or inspect the bank and/or
the bank holding company, if necessary, in order to secure the sound and appropriate operation of the business of a bank.

Under the Banking Act, a person who desires to hold 20% (in some exceptional cases, 15%) or more of the voting rights of a bank is
required to obtain advance approval of the FSA Commissioner. In addition, the FSA may request the submission of reports or materials from, or may conduct an inspection of, any principal shareholder who holds 20% (in some exceptional cases, 15%) or
more of the voting rights of a bank if the FSA deems the action necessary in order to secure the sound and appropriate operation of the business of the bank. Under limited circumstances, the FSA may order the principal shareholder to take such
measures as the FSA deems necessary.

Furthermore, any person who becomes a holder of more than 5% of the voting rights of a
bank holding company or a bank must report the ownership of the voting rights to the Director General of the relevant local finance bureau within five business days. This requirement is separate from the significant shareholdings report required
under the FIEA. In addition, a similar report must be made in respect of any subsequent change of 1% or more in any previously reported holding or in respect of any change in material matters set out in reports previously filed, with some
exceptions.

Regulations for Protection of Customers

Protection of Personal Information

The Act on the Protection of Personal Information and related rules, regulations and guidelines impose requirements on businesses that use databases containing personal information, including appropriate
custody of personal information and restrictions on information sharing with third parties.

Act on Sales, Etc. of
Financial Products

Due to deregulatory measures in the banking and other financial services industries, more financial
products, including highly structured and other complicated products, may now be marketed to a broad base of customers. The Act on Sales, Etc. of Financial Products was enacted to better protect customers from incurring unexpected losses as a result
of purchasing these financial products. Under this law, sellers of financial products have a duty to their potential customers to explain important matters (i.e., the nature and magnitude of risk involved) regarding the financial products that they
sell. If a seller fails to comply with the duty, the loss in value of the purchased investment product due to the failure to explain is refutably presumed to be the amount of the customers loss. An amendment to this law, together with other
related laws including the FIEA, became effective in September 2007. The amended law enlarges the scope of the duty of financial services providers to inform customers of important matters related to the financial products that they offer.

Act Concerning Protection of Depositors and Relief for Victims of Certain Types of Fraud

The Act Concerning Protection of Depositors from Illegal Withdrawals Made by Forged or Stolen Cards requires financial institutions to
establish internal systems to prevent illegal withdrawals of deposits made using forged or stolen bank cards. The law also requires financial institutions to compensate depositors for any amount illegally withdrawn using forged or stolen bankcards,
subject to certain conditions.

The Act Concerning Payment of Dividends for Relief of Damages from Funds in Account used in
connection with Crimes requires that financial institutions take appropriate measures against various crimes including the closing of accounts used in connection with fraud and other crimes. The law also requires financial institutions to make, in
accordance with specified procedures, payments from funds collected from the closed accounts to victims of certain crimes.



43



---

##### Table of Contents

Act on Prevention of Transfer of Criminal Proceeds

Under the Act on Prevention of Transfer of Criminal Proceeds, which addresses money laundering and terrorism concerns, financial
institutions and certain other entities, such as credit card companies, are required to perform customer identification, submit suspicious transaction reports and keep records of their transactions.

Other Regulations Related to Our Business

Financial Instruments and Exchange Act of Japan

The Financial Instruments
and Exchange Act of Japan (FIEA) regulates the securities industry and most aspects of securities transactions in Japan, including public offerings, private placements and secondary trading of securities, ongoing disclosure by securities
issuers, tender offers for securities, organization and operation of securities exchanges and self-regulatory organizations and registration of securities companies. The Prime Minister has the authority to regulate the securities industry and
securities companies, which authority is delegated to the FSA Commissioner under the FIEA. The Securities and Exchange Surveillance Commission, an external agency of the FSA, is independent from the Agencys other bureaus and is vested with
authority to conduct day-to-day monitoring of the securities markets and to investigate irregular activities that hinder fair trading of securities, including inspection of securities companies as well as banks in connection with their securities
business. Furthermore, the FSA Commissioner delegates certain authority to the Director General of the Local Finance Bureau to inspect local securities companies and their branches. A violation of applicable laws and regulations may result in
various administrative sanctions, including revocation of registration or authorization, suspension of business or an order to discharge any Director or Executive Officer who has failed to comply with applicable laws and regulations. Securities
companies are also subject to the rules and regulations of the Japanese stock exchanges and the Japan Securities Dealers Association, a self-regulatory organization of securities companies.

An amendment to the FIEA was promulgated in September 2012 in order to, among other things, facilitate the establishment of a
Comprehensive Exchange, in which securities, financial derivatives and commodity derivatives are traded comprehensively. It enables Financial Instruments Exchanges to trade commodity derivatives to enhance user convenience. The FSA
conducts supervision of the Comprehensive Exchange. The amendment with regard to the Comprehensive Exchange became effective on March 11, 2014.

Regulation of the Consumer Finance Business

In order to resolve the
problems of heavily indebted borrowers and to effect proper regulation of the consumer finance business, in June 2010, maximum legal interest rates were reduced to levels prescribed by the Interest Rate Restriction Act, ranging from 15% to 20%, and
gray zone interest, which is interest on loans in excess of rates prescribed by the Interest Rate Restriction Act up to the 29.2% maximum rate permitted under the Contributions Act, was abolished. Judicial decisions have strictly interpreted the
conditions under which consumer finance companies may retain gray zone interest. As a result, claims for refunds of gray zone interest increased substantially. Amendments to the Money Lending Business Act provide an additional upper limit on
aggregate borrowings by an individual from all moneylenders over which moneylenders may not extend further loans, as well as stricter regulation and supervision of moneylender activities.

Installment Sales Act

In order to ensure the fairness of transactions with respect to installment and other sales, prevent damage to consumers and manage credit card numbers, the Installment Sales Act imposes requirements on
those who conduct installment sales businesses. In June 2008, revisions to the Installment Sales Act were enacted, most of which became effective in December 2009. The revisions impose more stringent and expanded requirements for credit card
companies, including, among other things: (1) wider coverage of installment sales under the regulations; (2) measures to prevent inappropriate extensions of credit for certain credit transactions; (3) measures to prevent excessive lending for
certain credit transactions that include requirements to investigate



44



---

##### Table of Contents

the payment ability of consumers by use of designated credit information organizations and prohibition of execution of credit agreements that exceed the payment ability of consumers; and (4)
measures to protect certain information, such as credit numbers.

Base Erosion and Profit Shifting (BEPS)

In July 2013, the Organization for Economic Co-operation and Development (OECD) published the Action Plan on Base Erosion and
Profit Shifting (BEPS) in order to prevent exploiting of gaps and mismatches in tax rules and artificial shifting of profits to low or no-tax locations. In October 2015, OECD published the final package of measures for a comprehensive,
coherent and coordinated reform of the international tax rules for 15 key areas. These measures will apply once they are implemented either in domestic laws or in the network of bilateral tax treaties. Some of the deliverables published by OECD have
been partially reflected to Japanese tax regulations by the tax reform adopted in 2015 and 2016.

Deregulation

The developments toward deregulation of the financial system including those described below have made the Japanese
banking industry highly competitive.

Deregulation of Bank Engagement in the Securities Business

The gradual relaxation of the restrictions under the Securities and Exchange Act allowed banks to engage in the following business lines,
after taking appropriate registration measures with the FSA:



| |  |  | underwriting and dealing in Japanese government bonds, Japanese municipal bonds, Japanese government guaranteed bonds, commercial paper and certain
bonds issued by special purpose companies;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | selling beneficiary certificates of investment trusts and securities issued by an investment company; and
| | - |  | ---------------------------------------------------------------------------------------------------------



| |  |  | dealing in listed or OTC securities or derivatives transactions as well as in the securities intermediary business.
| | - |  | -------------------------------------------------------------------------------------------------------------------

In addition, amendments to the FIEA and the Banking Act relating to firewalls and conflicts of interest between banks, securities
companies and insurance companies became effective on June 1, 2009. The amendment relating to firewalls abolished the ban on certain officers and employees from holding concurrent posts in banks, securities companies and insurance companies, and
relaxed restrictions on the transfer of non-public customer information. On the other hand, the amendment relating to conflicts of interest requires those financial institutions, including banks, to implement proper information management procedures
and to develop appropriate internal systems to prevent customer interests from being unfairly harmed through trading by the companies or by other companies within their group. For example, the companies may be required to create information barriers
between departments and monitor how it executes transactions with customers.

Deregulation of Insurance Products

The gradual deregulation of the financial services industry permitted banks in Japan to offer an increased variety of
insurance products, including pension-type insurance to the full range, as an agent.

Privatization of Japan Post Holdings
Co., Ltd.s subsidiaries

In December 2014, under the Postal Privatization Act, Japan Post Holdings Co., Ltd.
(Japan Post Holdings), a joint stock corporation that holds shares of operating companies, published a plan for the listing of Japan Post Holdings, Japan Post Bank, one of the worlds largest deposit-taking institutions, and Japan
Post



45



---

##### Table of Contents

Insurance Co., Ltd. (Japan Post Insurance) and the gradual disposition of its shares of Japan Post Bank and Japan Post Insurance down to approximately 50% ownership. In November 2015,
each of Japan Post Holdings, Japan Post Bank and Japan Post Insurance publicly offered approximately 11% of their outstanding shares, respectively, and they were listed on the Tokyo Stock Exchange. Japan Post Bank is required to receive prior
approval of the Government of Japan to expand its business until Japan Post Holdings disposes of at least half of the shares of Japan Post Bank.

Regulations in the United States

As a result of its operations in the
United States, the Bank and SMFG are subject to extensive federal and state banking and securities supervision and regulation. The Bank engages in U.S. banking activities directly through its branches in Los Angeles, San Francisco and New York and
through its representative office in Houston. The Bank also controls a U.S. banking subsidiary, Manufacturers Bank, and a U.S. broker-dealer subsidiary, SMBC Nikko Securities America.

The Banks New York branch is supervised by the Federal Reserve Bank of New York and the New York State Department of Financial
Services, but its deposits are not insured (or eligible to be insured) by the Federal Deposit Insurance Corporation (FDIC). The Banks Los Angeles and San Francisco branches are supervised by the Federal Reserve Bank of San
Francisco and the California Department of Business Oversight, but their deposits are not insured (or eligible to be insured) by the FDIC. The Banks representative office in Houston is subject to regulation and examination by the Texas
Department of Banking and the Federal Reserve Bank of Dallas.

The Bank and SMFG are qualifying foreign banking organizations
under the U.S. International Banking Act of 1978, as amended (International Banking Act), and as such are subject to regulation as bank holding companies under the Bank Holding Company Act. Additionally, the Bank and SMFG are bank
holding companies by virtue of their ownership of Manufacturers Bank. As a result, the Bank, SMFG and their U.S. operations are subject to regulation, supervision and examination by the Federal Reserve Board as their U.S. umbrella
supervisor.

Manufacturers Bank is a California state-chartered bank that is not a member of the Federal Reserve System.
As a state non-member bank the deposits of which are insured by the FDIC, Manufacturers Bank is subject to regulation, supervision and examination by the FDIC and the California Department of Business Oversight.

In order to further expand our business in the U.S., we and the Bank obtained financial holding company status under the Bank Holding
Company Act on May 7, 2013, which authorizes the expansion of the scope of services we provide in the U.S., including the underwriting and trading of securities and other investment banking services.

Restrictions on Business Activities

As described below, federal and state banking laws and regulations restrict the Banks and SMFGs ability to engage, directly or indirectly through subsidiaries, in certain activities in the
United States.

The Bank and SMFG are required to obtain the prior approval of the Federal Reserve Board before directly or
indirectly acquiring the ownership or control of more than 5% of any class of voting shares of U.S. banks, certain other depository institutions and bank or depository institution holding companies. Under the Bank Holding Company Act and the Federal
Reserve Board regulations, the Bank is required to serve as a source of financial strength to Manufacturers Bank. In addition, the Banks U.S. banking operations (including Manufacturers Bank and the Banks U.S. branches) are also
restricted from engaging in certain tying arrangements involving products and services.



46



---

##### Table of Contents

As financial holding companies, we, the Bank and the companies under our control are
permitted to engage in a broader range of activities in the U.S. and abroad than permitted for bank holding companies and their subsidiaries. Unless otherwise limited by the Federal Reserve Board, financial holding companies generally can engage,
directly or indirectly in the U.S. and abroad, in financial activities, either de novo or by acquisition, by providing after-the-fact notice to the Federal Reserve Board. These financial activities include underwriting and dealing in securities,
insurance underwriting and brokerage and making investments in non-financial companies for a limited period of time, as long as the financial holding company does not directly or indirectly manage the non-financial companies day-to-day
activities, and the financial holding companys banking subsidiaries engage only in permitted cross-marketing with the non-financial companies. If we or the Bank cease to qualify as financial holding companies, we could be barred from new
financial activities or acquisitions, and have to discontinue the broader range of activities permitted to financial holding companies.

Other Prudential Restrictions

The Banks U.S. branches and
Manufacturers Bank are subject to requirements and restrictions under U.S. federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be made and limitations on the
types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also affect the operations of Manufacturers Bank, and to a limited extent, the Banks New York and California branches.

In addition, under U.S. federal banking laws, state-chartered banks (such as Manufacturers Bank) and state-licensed branches
and agencies of foreign banks (such as the Banks New York branch) may not, as a general matter, engage as a principal in any type of activity not permissible for their federally chartered or licensed counterparts, unless (i) in the case of
state-chartered banks, the FDIC determines that the additional activity would pose no significant risk to the FDICs Deposit Insurance Fund and is consistent with sound banking practices and (ii) in the case of state-licensed branches and
agencies of foreign banks, the Federal Reserve Board determines that the additional activity is consistent with sound banking practices. The U.S. federal banking laws also subject state branches and agencies of foreign banks to the same
single-borrower lending limits that apply to federal branches or agencies, which are substantially similar to the lending limits applicable to national banks. For the Banks U.S. branches, these single-borrower lending limits are based on the
worldwide capital of the Bank.

Under the International Banking Act, the Federal Reserve Board may terminate the activities of
any U.S. office of a foreign bank if it determines (i) that the foreign bank is not subject to comprehensive supervision on a consolidated basis in its home country (unless the home country is making demonstrable progress toward establishing such
supervision), (ii) that there is reasonable cause to believe that such foreign bank or its affiliate has violated the law or engaged in an unsafe or unsound banking practice in the United States and, as a result of such violation or practice, the
continued operation of the U.S. office would be inconsistent with the public interest or with the purposes of federal banking laws, or (iii) for a foreign bank that presents a risk to the stability of the United States financial system, the home
country of the foreign bank has not adopted, or made demonstrable progress toward adopting, an appropriate system of financial regulation to mitigate such risk.

There are various qualitative and quantitative restrictions on the extent to which SMFG and its subsidiaries can borrow or otherwise obtain credit from its U.S. bank subsidiary, Manufacturers Bank, or
engage in certain other transactions involving that subsidiary. In general, these transactions must be on terms that would ordinarily be offered by Manufacturers Bank to unaffiliated entities, and credit transactions must be secured by designated
amounts of specified collateral. In addition, certain transactions, such as certain purchases by Manufacturers Bank from the Bank or its non-bank subsidiaries, are subject to volume limitations. Effective in July 2012, the Dodd-Frank Act (discussed
below) subjects credit exposure arising from derivative transactions, securities borrowing and lending transactions, and repurchase/reverse repurchase agreements to these collateral and volume transactions limitations.



47



---

##### Table of Contents

Regulatory Requirements applicable to Financial Holding Companies

As financial holding companies, we and the Bank are subject to additional regulatory requirements. For example, we, the Bank and
Manufacturers Bank, which is our U.S. insured depository institution subsidiary, must be well capitalized, meaning maintenance of a Tier 1 risk-based capital ratio of at least 6% and a total
risk-based capital ratio of at least 10% under the revised capital standards of Basel III, which became effective on January 1, 2015 in the U.S. In addition, we, the Bank and Manufacturers Bank must be
well managed, including maintenance of examination ratings that are at least satisfactory. Further, the Bank is also required to be well capitalized and well managed under its home country standards, which must be comparable to those
required for a U.S. bank. Failure to comply with such requirements would require us and the Bank to prepare a remediation plan, and we would not be able to undertake new business activities or acquisitions based on our status as a financial holding
company during any period of noncompliance without the prior approval of the Federal Reserve Board. Divestiture or termination of certain business activities in the U.S. may also be required as a consequence of failure to correct such conditions
within 180 days.

Regulations for Stabilizing the Financial System

Dodd-Frank Wall Street Reform and Consumer Protection Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) provides a broad framework for significant regulatory changes across most areas of U.S. financial regulation. The
Dodd-Frank Act addresses, among other issues, systemic risk oversight, bank capital standards, the resolution of failing systemically significant financial institutions, OTC derivatives, the ability of banking entities to engage in proprietary
trading activities and invest in hedge funds and private equity funds, consumer and investor protection, hedge fund registration, and securitization.

Implementation of the Dodd-Frank Act is taking place through detailed rulemaking over multiple years by various regulators, including the Office of the Comptroller of the Currency (OCC), the
Federal Reserve Board, the SEC, the FDIC, the Commodity Futures Trading Commission (CFTC), the Financial Stability Oversight Council and the Consumer Financial Protection Bureau.

In December 2013, the Federal Reserve Board, the SEC, the OCC, the FDIC, and the CFTC adopted final rules implementing what is known as
the Volcker Rule. The final rules require banking entities to conform to certain restrictions on proprietary trading activities, hedge fund and private equity fund activities and certain other enumerated investment restrictions, but
contain a number of exclusions and exemptions that substantially limit their extraterritorial reach. Concurrently, with the release of the final rules in December 2013, the Federal Reserve Board issued an order extending the conformance period until
July 21, 2015. During the conformance period, banking entities must engage in good-faith efforts to conform their activities and investments to the requirements of the final rules by the conformance deadline. In December 2014, the Federal Reserve
Board extended the conformance period to July 21, 2016 for certain investments in and relationships with hedge funds and private equity funds that were in place as of December 31, 2013, and announced its intention to further extend this conformance
period until July 21, 2017. Although complying with the final rules could result in additional costs, or restrict or otherwise affect the way we conduct our business, the impact remains uncertain.

The Dodd-Frank Act provides regulators with tools to impose greater capital, leverage and liquidity requirements and other prudential
standards, particularly for financial institutions that pose significant systemic risk and bank holding companies with assets of $50 billion or more. In imposing heightened prudential standards on non-U.S. financial institutions such as us and the
Bank, the Federal Reserve Board is directed to take into account the principle of national treatment and equality of competitive opportunity, and the extent to which the non-U.S. bank holding company is subject to comparable home country standards.

On February 18, 2014, the Federal Reserve Board adopted final rules that will apply enhanced prudential standards to the U.S.
operations of large non-U.S. banking organizations, including us. The final rules, effective



48



---

##### Table of Contents

July 1, 2016, will require each of certain large non-U.S. banking organizations, such as us, to certify that it is subject to home country capital standards that are broadly consistent with the
Basel capital framework, including Basel III; conduct home country capital stress tests that are comparable to U.S. standards; comply with a qualitative liquidity framework, including, among other things, a U.S. liquidity buffer requirement for its
U.S. branches and agencies based on the results of internal liquidity stress testing; and establish a U.S. risk committee that understands the risk management policies and framework of its U.S. operations and has a general understanding of the risk
management practices of the U.S. operations.

Under the final rules, non-U.S. banking organizations with combined U.S. assets
(excluding assets held by its U.S. branches and agencies) of $50 billion or more, will be required to establish a separately capitalized top-tier U.S. intermediate holding company. However, this requirement will not apply to us. Although proposed
rules have been released, the final rules for single counterparty credit limits and for early remediation have yet to be promulgated.

Effective in July 2011, the Dodd-Frank Act removed a longstanding prohibition on the payment of interest on demand deposits by Manufacturers Bank and the Banks three branches in the United States.
In addition, the Dodd-Frank Act requires that the lending limits take into account credit exposure arising from derivative transactions and securities lending, securities borrowing, and repurchase agreements and reverse repurchase agreements with
counterparties. In June 2013, the OCC adopted the final rules that implement these new lending limits, and compliance with these new lending limits is required for our New York, Los Angeles and San Francisco branches from October 1, 2013, in
addition to existing state lending limits that apply to the branches. Additionally, as a California state-chartered bank, Manufacturers Bank is subject to state lending limits, which also apply to credit exposure arising from derivative
transactions.

Furthermore, the Dodd-Frank Act provides for an extensive framework for the regulation of OTC derivatives,
including mandatory clearing, exchange trading and transaction reporting of certain OTC derivatives. In October 2012, the final joint rules of the CFTC and the SEC that further define swap and security based swap became
effective. As a result, certain entities are required to register with the CFTC as swap dealers or major swap participants and our subsidiary, SMBC Capital Markets, Inc., became provisionally registered as a swap dealer on or
around December 31, 2012. While some of the U.S. swaps requirements are already final and effective, others are subject to further rulemaking or deferred compliance dates. Mandatory clearing, trade execution and reporting requirements for swaps took
effect in the first half of 2013.

Furthermore, the Dodd-Frank Act requires the SEC to establish rules requiring issuers with
listed securities, which may include non-U.S. private issuers such as us, to establish a clawback policy to recoup previously awarded compensation in the event of an accounting restatement. The Dodd-Frank Act also grants the SEC
discretionary rule-making authority to impose a new fiduciary standard on brokers, dealers and investment advisers, and expands the extraterritorial jurisdiction of U.S. courts over actions brought by the SEC or the United States with respect to
violations of the antifraud provisions in the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940.

Laws Prohibiting Money Laundering and Terrorist Financing

The
Bank Secrecy Act / USA PATRIOT Act of 2001

The Bank Secrecy Act, as amended by the USA PATRIOT Act of 2001 (PATRIOT
Act) contains measures to prevent and detect the financing of terrorism and international money laundering by imposing significant compliance and due diligence obligations, creating crimes, providing for penalties and expanding the
extraterritorial jurisdiction of the United States. The Bank Secrecy Act, as amended, imposes anti-money laundering compliance obligations on U.S. financial institutions, including the U.S. offices of foreign banks. The passage of the PATRIOT Act
and other events have resulted in heightened scrutiny of compliance with the Bank Secrecy Act and anti-money laundering rules by federal and state regulatory and law enforcement authorities. Certain provisions of the PATRIOT Act expired in June 2015
and were extended in part by the USA FREEDOM Act of 2015, enacted on June 2015.



49



---

##### Table of Contents

U.S. Sanctions Targeting Iran Related Activities

In July 2010, the U.S. government enacted legislation designed to restrict economic and financial transactions with Iran, i.e., the
Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA), which, as amended, authorized the imposition of sanctions against non-U.S. financial institutions, such as us, if they are determined by the U.S. Secretary
of the Treasury to have facilitated significant transactions or provided significant financial services for certain Iran-linked individuals or entities or the Islamic Revolutionary Guard Corps. Non-U.S. financial institutions
that engage in sanctionable activity could lose their ability to open or maintain correspondent or payable-through accounts with U.S. financial institutions, among other possible sanctions.

In December 2011, the U.S. government adopted Section 1245 of the National Defense Authorization Act for Fiscal Year 2012 (2012
NDAA), which broadened the range of sanctionable transactions to include conducting or facilitating significant financial transactions with the Central Bank of Iran or other Iranian financial institutions designated for sanctions
under the International Emergency Economic Powers Act in connection with Irans weapons of mass destruction proliferation or support for international terrorism. Following Implementation Day, this sanction no longer applies to significant
financial transactions with the Central Bank of Iran.

In addition, in July 2012, Executive Order 13622 was issued, which, as
amended, authorized the U.S. Secretary of the Treasury, in consultation with the U.S. Secretary of State, to impose correspondent account sanctions on any foreign financial institution that knowingly conducted or facilitated a significant
financial transaction with the National Iranian Oil Company or Naftiran Intertrade Company, or that knowingly conducted or facilitated a significant transaction for the purchase, acquisition, sale, transport or marketing of petroleum, petroleum
products or petrochemical products from Iran, with certain exceptions. On Implementation Day, Executive Order 13622 was revoked by Executive Order 13716.

Further, in August 2012, the President signed the Iran Threat Reduction and Syria Human Rights Act of 2012 into law, which strengthened sanctions on Iran, especially those aimed at third-country nationals
who engaged in certain business with Iran, and included measures relating to human rights abuses in Iran and Syria. It authorized the imposition of secondary sanctions penalties on non-U.S. persons found to have engaged in specified activities
relating to Iran.

In addition, the Iran Freedom and Counter-Proliferation Act of 2012 (IFCA), which is included
in the U.S. National Defense Authorization Act for Fiscal Year 2013, imposed, among other things, new sanctions against the energy, shipping and shipbuilding sectors of Iran, as well as Iranian port operators, and the sale, supply or transfer
to or from Iran of certain precious and other metals and materials. Executive Order 13645 targeted, among other things, the automotive sector of Iran and transactions in Irans currency, the rial. The IFCA and Executive Order 13645 provided for
the imposition of sanctions on persons, including foreign financial institutions, that knowingly engaged in activities related to the sectors and conduct targeted by the IFCA and Executive Order 13645, and activities that involved certain Iranian
persons included on the Specially Designated Nationals and Blocked Persons List (the SDN List) maintained by OFAC. On Implementation Day, Executive Order 13645 was revoked by Executive Order 13716. Also on Implementation Day, the United
States waived the imposition of certain correspondent or payable-through account sanctions under the IFCA, and committed to refrain from imposing certain discretionary blocking sanctions under the IFCA. It continues to be sanctionable under the IFCA
to knowingly conduct or facilitate significant financial transactions on behalf of any Iranian person on the SDN List.

The
U.S. Secretary of State announced on March 20, 2012 that Japan was among a number of countries that had significantly reduced the volume of crude oil purchases from Iran, and that therefore the 2012 NDAA sanctions would not apply to Japanese
financial institutions for a period of 180 days, which period could be renewed based on ongoing reductions in crude oil purchases from Iran (NDAA Exception). The NDAA



50



---

##### Table of Contents

Exception was renewed on September 14, 2012, March 13, 2013, and September 6, 2013. The NDAA Exception, which was subject to certain restrictions, also exempted Japanese financial institutions
from sanctions under certain provisions of Executive Order 13622, the IFCA, and Executive Order 13645.

On January 20, 2014,
the U.S. government issued certain temporary sanctions waivers as part of the November 24, 2013 Joint Plan of Action (JPOA) among the P5 + 1 and Iran (JPOA Waivers). While in effect, the JPOA Waivers superseded the NDAA
Exception, which expired on March 5, 2014. The effective period of the JPOA Waivers (JPOA Relief Period) was originally from January 20, 2014 through July 20, 2014, but was successively extended through July 13, 2015. Pursuant to the
JPOA Waivers, the U.S. government agreed not to seek reductions in the volume of Iranian crude oil purchased by current authorized purchasers, including Japan, during the JPOA Relief Period. Additionally, pursuant to the JPOA Waivers, non-U.S.
financial institutions, such as us, that engaged in certain transactions initiated and completed during the JPOA Relief Period relating to exports of Iranian petrochemical products, petroleum and petroleum products, Irans automotive sector,
Irans trade in gold and precious metals, and the supply and installation of certain spare parts and services for civil aircraft in Iran would not be targeted for secondary sanctions under U.S. law. On July 14, 2015, the sanctions relief
provided for in the JPOA was further extended.

As part of the JPOA, the P5 + 1 and Iran agreed on a process to authorize or
facilitate the release in installments over the initial JPOA Relief Period (January 20, 2014 through July 20, 2014) of $4.2 billion of Irans restricted funds held in banks outside Iran and outside the United States, contingent on Iran
fulfilling its commitments under the JPOA. The United States Government worked with non-U.S. financial institutions to implement the release of such funds to Iran. As part of the extension of the JPOA Relief Period to November 24, 2014, the P5 + 1
agreed to allow Iran access to an additional $2.8 billion of its restricted assets in installments. According to the U.S. Treasury Department, the P5+1 fulfilled their commitments to facilitate the release of $4.2 billion during the initial
JPOA Relief Period and to facilitate the release of a further $2.8 billion through November 24, 2014. Further, as part of a further extension of the JPOA Relief Period, the P5 + 1 agreed to facilitate the release in installments of an additional
$4.9 billion of Irans restricted funds during the period beginning on November 25, 2014, and ending on June 30, 2015. In addition, the JPOA, among other things, established a financial channel to facilitate humanitarian trade for Irans
domestic needs using Iranian oil revenues held abroad. For a description of the remittances the Bank conducted in connection with the export of humanitarian goods to Iran under applicable laws and regulations, see Disclosure Pursuant to
Section 13(r) of the Securities Exchange Act of 1934.

In April 2015, the parties to the JPOA reached an understanding
on the framework for the JCPOA. In May 2015, President Obama signed into law the Iran Nuclear Agreement Review Act of 2015, which established a mechanism for Congressional review of any new agreement reached between the United States and Iran
related to Irans nuclear program.

On July 14, 2015, the P5 + 1 and Iran, with the European Union, agreed on the final
text of the JCPOA. The JCPOA established a framework for providing Iran with phased sanctions relief upon verification that Iran had implemented key nuclear commitments. Under the JCPOA, U.S. sanctions relief is provided through the suspension and
eventual termination of nuclear-related secondary sanctions, which began on Implementation Day, January 16, 2016, when the International Atomic Energy Agency verified that Iran had implemented key nuclear-related measures described in the JCPOA. As
noted above, certain U.S. sanctions authorities targeting Iran and targeting certain Iran-related transactions and activities were revoked or waived on January 16, 2016.

Even after Implementation Day, certain secondary sanctions remain in effect, including those targeting significant transactions involving SDNs or the Islamic Revolutionary Guard Corps. Non-U.S. financial
institutions that engage in transactions targeted by secondary sanctions could lose their ability to open or maintain correspondent or payable-through accounts with U.S. financial institutions, among other possible restrictive measures. It is the
Banks policy not to conduct activities targeted by remaining secondary sanctions.



51



---

##### Table of Contents

Pursuant to the JCPOA, there also remains a possibility that, if Iran is found to be in
non-compliance with its commitments under the JCPOA, sanctions that have been waived or lifted, including nuclear-related secondary sanctions, could be re-imposed.

Ukraine Freedom Support Act of 2014

In order to deter the Russian
government from further destabilizing and invading Ukraine, the U.S. government enacted H.R. 5859, the Ukraine Freedom Support Act of 2014 (signed into law on December 18, 2014). Among other things, the Act authorizes prohibitions or strict
limitations on the opening or maintaining of correspondent or payable-through accounts in the United States by non-U.S. financial institutions determined by the U.S. government (i) to have knowingly engaged in on or after December 18, 2014 in
significant transactions involving certain activities described in the Act, including those involving individuals or entities on whom sanctions are imposed pursuant to the Act for making a significant investment in a project for the extraction of
deepwater, Arctic offshore or shale formation crude oil in Russia, or (ii) to have knowingly facilitated, on or after June 16, 2015, a significant financial transaction on behalf of any Russian individual or entity included on the SDN List pursuant
to Ukraine-related sanction programs.

Foreign Account Tax Compliance Act

Provisions of the U.S. tax law commonly referred to as the Foreign Account Tax Compliance Act (FATCA), which became effective
on July 1, 2014, aim to prevent U.S. persons from hiding their financial assets or evading their U.S. federal income tax obligations by the use of offshore accounts. A foreign financial institution that has entered into an agreement with the U.S.
Internal Revenue Service (IRS) pursuant to which it agrees to comply with FATCA, referred to as a participating foreign financial institution (PFFI), is required to perform specified due diligence, reporting and
withholding functions (a PFFI agreement). Specifically, under FATCA, a PFFI is required to ascertain the U.S. status of customers through specified due diligence and report certain information annually to the IRS. In cases where
customers are not compliant with FATCA, PFFIs are obligated to carry out specified reporting and withholding procedures as prescribed. The consequences for foreign financial institutions that are not compliant with FATCA include being subjected to a
30% withholding tax on certain withholdable payments from U.S. sources and reporting to the IRS.

The United States entered
into intergovernmental agreements or reached agreements in substance with more than 100 countries in furtherance of the objectives of FATCA, which modify the operation of FATCA with respect to financial institutions located in those countries. On
June 11, 2013 the United States and Japan entered into an intergovernmental agreement to facilitate the implementation of FATCA pursuant to which Japanese financial institutions (such as us and certain of our Group companies) are directed by the
Japanese authorities to register with the IRS and fulfill obligations consistent with those required under a PFFI agreement. We have registered with the IRS to become a PFFI. We are committed to complying with FATCA as a PFFI and abiding by the
terms of our PFFI agreement with the IRS within the jurisdictions in which we operate and in accordance with the time frame set out by the IRS. We intend to closely monitor FATCA developments and evolving industry practices to ensure continued
compliance with FATCA moving forward.

Other Regulations in the United States

In the United States, the Banks U.S.-registered broker-dealer subsidiary, SMBC Nikko Securities America, is regulated by the SEC.
Broker-dealers are subject to regulations that cover all aspects of the securities business, including:



| |  |  | sales methods;
| | - |  | --------------



| |  |  | trade practices among broker-dealers;
| | - |  | -------------------------------------



| |  |  | use and safekeeping of customers funds and securities;
| | - |  | -------------------------------------------------------



52



---

##### Table of Contents

| |  |  | capital structure;
| | - |  | ------------------



| |  |  | record-keeping;
| | - |  | ---------------



| |  |  | the financing of customers purchases; and
| | - |  | ------------------------------------------



| |  |  | the conduct of directors, officers and employees.
| | - |  | -------------------------------------------------

In addition, SMBC Nikko Securities America is a member of and regulated by the Financial Industry Regulatory Authority and is regulated by the individual state securities authorities in the states in
which it operates. The U.S. government agencies and self-regulatory organizations, as well as state securities authorities in the United States having jurisdiction over the Banks U.S. broker-dealer affiliates, are empowered to conduct
administrative proceedings that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer or its directors, officers or employees.

Regulations in Other Jurisdictions

Elsewhere in the world, our operations
are subject to regulation and control by local central banks and monetary authorities.

Disclosure Pursuant to Section 13(r) of the
Securities Exchange Act of 1934

Section 13(r) of the Securities Exchange Act of 1934, as amended, requires an issuer to
disclose whether it or any of its affiliates knowingly engaged in certain activities or transactions relating to Iran or with individuals or entities designated by the U.S. government under specified Executive Orders, even if those activities are
not prohibited by U.S. law and are conducted outside the United States by non-U.S. affiliates. During the twelve months ended March 31, 2016, one affiliate of SMFG, SMBC, engaged in activities subject to disclosure under Section 13(r). SMBC
conducted these activities consistent with its internal policies and procedures, the policies and procedures of SMFG, and applicable laws and regulations, and to the extent they are not sanctionable under U.S. secondary sanctions.

SMBC issued letters of credit and provided remittance and other settlement services in connection with customers trade transactions
between Japan and Iran. These transactions principally involved the importation of oil into Japan or exportation of civilian commercial products from Japan and were conducted with Iranian banks, including the Central Bank of Iran and one other bank
owned by the Government of Iran. Under certain exceptions and U.S. sanctions relief measures granted to Japanese financial institutions, SMBC supported a Japanese importing company by paying bills of exchange in connection with imports of crude oil
from an Iranian oil company owned by the Government of Iran that was, at the time of certain of the transactions, designated under Executive Order 13382 but that was removed from the SDN List on January 16, 2016. These transactions did not involve
the settlement of U.S. dollar-denominated payments cleared through U.S. banks. SMBC has informed SMFG that it intends to continue to engage in these types of transactions to the extent permitted under applicable regulations and to the extent they
are not sanctionable under U.S. secondary sanctions. For the twelve months ended March 31, 2016, the gross revenue related to these transactions was ¥8.7 million, representing about 0.0003% of SMFGs total interest and fee income. SMFG does
not allocate direct costs to interest and fee income and therefore does not calculate net profits with respect to these transactions.

In addition, in accordance with applicable laws, regulations and sanctions relief measures (including sanctions relief under the JPOA, while it was in effect), SMBC has conducted certain settlement
services related to humanitarian trade with Iran. We are voluntarily disclosing such transactions, although we do not believe those transactions are subject to disclosure under Section 13(r) of the Securities Exchange Act of 1934. The JPOA/JCPOA
provide for the establishment of a financial channel to facilitate humanitarian trade for Irans domestic needs using Iranian oil revenues held abroad. The overall framework to provide these services is based on an agreement between the U.S.
and Japanese authorities and was reviewed by U.S. and Japanese authorities for compliance with applicable laws and regulations. The services provided under the framework are permitted



53



---

##### Table of Contents

under certain conditions; the remittances are required to be processed in Japanese yen through a Special Purpose Account for humanitarian trade; and the sellers of the humanitarian
goods, namely food, agricultural products, medicines and medical devices, are limited to Japanese entities and entities permitted by U.S. regulators. To facilitate the export of humanitarian goods to Iran, at the request of U.S. and Japanese
regulators and with the written authorization of the U.S. government, SMBC has provided remittances in connection with the export of humanitarian goods to Iran starting in March 2014. These transactions were conducted through the use of yen accounts
maintained with SMBC in Japan by a Government of Iran owned Iranian financial institution. These transactions did not involve U.S. dollars or clearing services of U.S. banks for the settlement of payments. SMBC intends to continue to provide these
remittance and other settlement services in connection with the export of humanitarian goods to Iran to the extent that U.S. and Japanese regulators continue to make such requests, and that the services are permitted under applicable laws and
regulations.

In the past, SMBC has issued performance bonds that supported various projects, including the construction of
petroleum plants in Iran. Some of these performance bonds had counterparties that were entities controlled by the Government of Iran. All of these performance bonds have matured, and SMBC has not renewed and will not renew them, but SMBC continues
to have obligations under the matured performance bonds until they are returned or cancelled by the beneficiaries. SMBC has also received fees from its customers on whose behalf it issued the performance bonds. For the twelve months ended March 31,
2016, the gross revenue relating to these transactions was ¥29.7 million, representing less than 0.0011% of SMFGs total interest and fee income. As noted above, SMFG does not allocate direct costs to interest and fee income and therefore
does not calculate net profits with respect to these transactions. SMBC has informed SMFG that it intends to continue to accept fee income from its customers for whose account the performance bonds were issued and to pay the relevant fees to the
Iranian banks, to the extent authorized by the Ministry of Finance of Japan or otherwise permitted under applicable regulations, until the bonds are returned or cancelled. However, SMBC strongly urges the relevant customers to ask the beneficiaries
to agree to return or cancel these performance bonds.

SMBC has frozen an account of an Iranian bank designated under
Executive Order 13224 pursuant to Japanese foreign exchange laws, and has frozen the U.S. dollar accounts of all Iranian banks. SMBC still maintains two Japanese yen accounts of government-owned Iranian banks, including an account for the Central
Bank of Iran, and certain transactions described in this disclosure were conducted through the use of such accounts. These transactions were conducted in accordance with Japanese law, and we do not believe that the transactions were sanctionable
under U.S. sanctions, due to the exception for Japanese financial institutions under the 2012 NDAA and waivers pursuant to the JCPOA or JPOA that were in effect at the time the transactions occurred. For a description of the exception under the 2012
NDAA and JCPOA/JPOA Waivers described in this paragraph, see Regulations in the United StatesLaws Prohibiting Money Laundering and Terrorist Financing. The gross revenue attributable to the accounts of government-owned
Iranian banks for the twelve months ended March 31, 2016, was less than ¥0.1 million, representing less than 0.0001% of SMFGs total interest and fee income. SMFG does not allocate direct costs to interest and fee income and therefore does
not calculate net profits with respect to these transactions. SMBC has informed SMFG that it intends to continue to maintain the Iranian accounts described above to the extent permitted under applicable laws and regulations.

As of the date of this annual report, to our knowledge, there is no other activity for the twelve months ended March 31, 2016 that
requires disclosure under Section 13(r) of the Securities Exchange Act of 1934.



54



---

##### Table of Contents

4.C.    ORGANIZATIONAL STRUCTURE

The following chart presents our corporate structure summary at March 31, 2016.



LOGO



|(1) | These companies are our associates.
|--- | -----------------------------------

|(2) | Cedyna Financial Corporation merged with SAKURA CARD CO., LTD. on April 1, 2016.
|--- | --------------------------------------------------------------------------------

As the ultimate holding company of the Group, we are responsible for:



| |  |  | group strategy and management;
| | - |  | ------------------------------



| |  |  | group resource allocation;
| | - |  | --------------------------



55



---

##### Table of Contents

| |  |  | group financial accounting;
| | - |  | ---------------------------



| |  |  | investor relations;
| | - |  | -------------------



| |  |  | capital strategy;
| | - |  | -----------------



| |  |  | group IT strategy;
| | - |  | ------------------



| |  |  | HR management for group executives;
| | - |  | -----------------------------------



| |  |  | group risk management, internal control and compliance;
| | - |  | -------------------------------------------------------



| |  |  | compensation schemes; and
| | - |  | -------------------------



| |  |  | efficiently harmonizing our operations on a Group-wide basis.
| | - |  | -------------------------------------------------------------

Principal Subsidiaries

Our principal subsidiaries at March 31, 2016 are
shown in the list below. We consolidate all entities that we control. We control an entity when we are exposed, or have rights, to variable returns from our involvement with the entity and have the ability to affect those returns through our power
over the entity.

Principal domestic subsidiaries



|                                                     |  |                                   |       |  |                              |  |       |               |  |                                                                                 
|---------------------------------------------------- |  | --------------------------------- | ----- |  | ---------------------------- |  | ----- | ------------- |  | --------------------------------------------------------------------------------
|Company Name                                         |  | Proportionof OwnershipInterest(1) |       |  | Proportionof
VotingRights(1) |  |       | Main Business
|                                                     |  | (%)                               |       |  | (%)                          |  |       |              
|Sumitomo Mitsui Banking Corporation                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking                                                              
|SMBC Trust Bank Ltd.                                 |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Trust Banking                                                                   
|THE MINATO BANK, LTD.                                |  |                                   | 6.0   |  |                              |  | 46.4  | (2)(3)        |  | Commercial banking                                                              
|Kansai Urban Banking Corporation                     |  |                                   | 59.8  |  |                              |  | 60.1  |               |  | Commercial banking                                                              
|SMBC Guarantee Co., Ltd.                             |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Credit guarantee                                                                
|Sumitomo Mitsui Finance and Leasing Company, Limited |  |                                   | 60.0  |  |                              |  | 60.0  |               |  | Leasing                                                                         
|SMBC Nikko Securities Inc.                           |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Securities                                                                      
|SMBC Friend Securities Co., Ltd.                     |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Securities                                                                      
|Sumitomo Mitsui Card Company, Limited                |  |                                   | 65.9  |  |                              |  | 65.9  |               |  | Credit card                                                                     
|Cedyna Financial Corporation(4)                      |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Credit card and consumer credit                                                 
|SMBC Consumer Finance Co., Ltd.                      |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Consumer lending                                                                
|SAKURA CARD CO., LTD.(4)                             |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Credit card                                                                     
|Mobit Co., LTD.                                      |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Consumer lending                                                                
|SMM Auto Finance, Inc.                               |  |                                   | 51.0  |  |                              |  | 51.0  |               |  | Automobile sales financing                                                      
|SMBC Finance Service Co., Ltd.                       |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Collecting agent and factoring                                                  
|The Japan Research Institute, Limited                |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | System development, data processing, management consulting and economic research
|SAKURA KCS Corporation                               |  |                                   | 50.2  |  |                              |  | 50.2  |               |  | System engineering and data processing                                          
|Financial Link Co., Ltd.                             |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Data processing service and consulting                                          
|SMBC Venture Capital Co., Ltd.                       |  |                                   | 40.0  |  |                              |  | 40.0  | (3)           |  | Venture capital                                                                 
|SMBC Consulting Co., Ltd.                            |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Management consulting and information services                                  
|Japan Pension Navigator Co., Ltd.                    |  |                                   | 69.7  |  |                              |  | 69.7  |               |  | Operational management of defined contribution pension plans                    



|(1) | Percentages of proportion of ownership interest and proportion of voting rights have been truncated.
|--- | ----------------------------------------------------------------------------------------------------

|(2) | We have a 6.0% direct holding in THE MINATO BANK, LTD., and can control a further 40.4% of the voting rights held by the Banks retirement benefit trust under
contractual agreements between the Bank and the retirement benefit trust.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | These companies are accounted for as subsidiaries, despite our holdings of less than 50% of the voting rights, because we are able to govern the financial and operating
policies of these companies under a statute or an agreement, or by delegating the majority of the members of the board of directors.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Cedyna Financial Corporation merged with SAKURA CARD CO., LTD. on April 1, 2016.
|--- | --------------------------------------------------------------------------------



56



---

##### Table of Contents

Principal foreign subsidiaries



|                                                    |  |                         |  |                                   |       |  |                              |  |       |               |  |                   
|--------------------------------------------------- |  | ----------------------- |  | --------------------------------- | ----- |  | ---------------------------- |  | ----- | ------------- |  | ------------------
|Company Name                                        |  | Country ofIncorporation |  | Proportionof OwnershipInterest(1) |       |  | Proportionof
VotingRights(1) |  |       | Main Business
|                                                    |  |                         |  | (%)                               |       |  | (%)                          |  |       |              
|Sumitomo Mitsui Banking Corporation Europe Limited  |  | U.K.                    |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking
|Sumitomo Mitsui Banking Corporation (China) Limited |  | China                   |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking
|Manufacturers Bank                                  |  | U.S.A.                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking
|Sumitomo Mitsui Banking Corporation of Canada       |  | Canada                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking
|Banco Sumitomo Mitsui Brasileiro S.A.               |  | Brazil                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking
|JSC Sumitomo Mitsui Rus Bank                        |  | Russia                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking
|PT Bank Sumitomo Mitsui Indonesia                   |  | Indonesia               |  |                                   | 98.4  |  |                              |  | 98.4  |               |  | Commercial banking
|Sumitomo Mitsui Banking Corporation Malaysia Berhad |  | Malaysia                |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Commercial banking
|SMBC Leasing and Finance, Inc.                      |  | U.S.A.                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Leasing           
|SMBC Aviation Capital Limited                       |  | Ireland                 |  |                                   | 90.0  |  |                              |  | 90.0  |               |  | Leasing           
|SMBC Nikko Securities America, Inc.                 |  | U.S.A.                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Securities        
|SMBC Nikko Capital Markets Limited                  |  | U.K.                    |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Securities        
|SMBC Capital Markets, Inc.                          |  | U.S.A.                  |  |                                   | 100.0 |  |                              |  | 100.0 |               |  | Derivatives       



|(1) | Percentages of proportion of ownership interest and proportion of voting rights have been truncated.
|--- | ----------------------------------------------------------------------------------------------------

4.D.    PROPERTY, PLANT AND EQUIPMENT

The assets for rent we own for the purpose of operating leases mainly consist of aircraft for the leasing business. We own or lease the
land and buildings in which we conduct our business. Most of the property that we operate in Japan is owned by us to be used by our branches. In contrast, our international operations are conducted out of leased premises. Our head office building in
Marunouchi is leased from a third party. Our largest property is the Banks East Tower in Marunouchi, with a net carrying value of ¥175 billion, including the land and building, at March 31, 2016.

The following table shows the net carrying amount of our tangible fixed assets at March 31, 2016.



|                |  |                   |           | 
|--------------- |  | ----------------- | --------- | 
|                |  | At March 31, 2016 |          
|                |  | (In millions)     |          
|Assets for rent |  | ¥                 | 1,545,360 | 
|Land            |  |                   | 512,819   | 
|Buildings       |  |                   | 375,679   | 
|Leased assets   |  |                   | 7,558     | 
|Others          |  |                   | 149,535   | 
|                |  |                   |           | 
|Total           |  | ¥                 | 2,590,951 | 
|                |  |                   |           | 

For more information, see Note 12 Property, Plant and Equipment and Note 38 Assets
Pledged and Received as Collateral to our consolidated financial statements included elsewhere in this annual report.

The total area of land related to our material office and other properties at March 31, 2016 was approximately 722,000 square meters for
owned land and approximately 15,000 square meters for leased land.

We are not aware of any material environmental issues that
may affect the utilization of our assets.



57



---

##### Table of Contents

|Item 4A. | Unresolved Staff Comments
|-------- | -------------------------

None.



|Item 5. | Operating and Financial Review and Prospects
|------- | --------------------------------------------

The discussion below should be read together with Item 3.A. Selected Financial Data and our consolidated financial statements and related notes included elsewhere in this annual report.
Unless otherwise indicated, we present our information on a consolidated basis.

OVERVIEW

Operating Environment

Our results of operations and financial condition are significantly affected by developments in Japan as well as the global economy.

For the fiscal year ended March 31, 2016, Japanese gross domestic product (GDP) increased by 0.8%, compared with
a decrease of 0.9% in the previous fiscal year, based on data published in June 2016 by the Cabinet Office of the Government of Japan.

For the period from April to June 2015, the quarter-on-quarter growth rate of Japanese GDP was minus 0.4%, primarily due to a decline in exports of goods and services affected by the slowdown of emerging
economies. However, Japanese GDP increased by 0.4% on a quarter-on-quarter basis for the period from July to September 2015, reflecting improvements in the private consumption, private investment and exports of goods and services. For the period
from October to December 2015, Japanese GDP decreased by 0.4% on a quarter-on-quarter basis with private consumption decreasing. Thereafter, for the period from January to March 2016, Japanese GDP increased by 0.5% on a quarter-on-quarter basis.

Private consumption, which accounts for about 58% of Japanese GDP, decreased by 0.2% for the fiscal year ended March 31,
2016. It decreased by 0.8% on a quarter-on-quarter basis for the period from April to June 2015. However, it then showed some resilience, reflecting the gradual improvement in the employment and income situation. For the period from July to
September 2015, private consumption increased by 0.5% on a quarter-on-quarter basis. For the period from October to December 2015, it decreased by 0.8% on a quarter-on-quarter basis. Thereafter, for the period from January to March 2016, it
increased by 0.6% on a quarter-on-quarter basis.

Private investment, which accounts for about 16% of Japanese GDP, consists
of capital investments by business and private residential investments. Capital investments by business increased by 2.0% for the fiscal year ended March 31, 2016. For the period from April to June 2015, they decreased by 1.2% on a
quarter-on-quarter basis. Thereafter, they increased, on a quarter-on-quarter basis, by 0.8% for the period from July to September 2015 and by 1.3% for the period from October to December 2015, reflecting the improvement in corporate earnings. Then,
for the period from January to March 2016, they decreased by 0.7% on a quarter-on-quarter basis. Private residential investments increased by 2.4% for the fiscal year ended March 31, 2016. For the periods from April to June 2015 and July to
September 2015, they increased, on a quarter-on-quarter basis, by 2.2% and 1.7% respectively, reflecting the steady improvement in the employment and income situation. However, for the period from October to December 2015, private residential
investments decreased by 1.0% on a quarter-on-quarter basis. Then, for the period from January to March 2016, they decreased by 0.7% on a quarter-on-quarter basis.

Changes in private inventories contributed 0.3 percentage points to Japanese GDP growth for the fiscal year ended March 31, 2016. For the period from April to June 2015, they contributed 0.3 percentage
points to Japanese GDP growth on a quarter-on-quarter basis, but negatively impacted Japanese GDP growth by 0.1 percentage points on a quarter-on-quarter basis for the period from July to September 2015. Thereafter, changes



58



---

##### Table of Contents

in private inventories pulled down Japanese GDP growth, on a quarter-on-quarter basis, by 0.2 percentage points for the period from October to December 2015 and by 0.1 percentage points for the
period from January to March 2016, respectively.

The ratio of exports of goods and services to Japanese GDP was about 17%,
and exports of goods and services increased by 0.4% for the fiscal year ended March 31, 2016. For the period from April to June 2015, exports of goods and services decreased by 4.8% on a quarter-on-quarter basis, due to the slowdown of emerging
economies, notably China. Although exports of goods and services increased by 2.6% on a quarter-on-quarter basis for the period from July to September 2015, they decreased by 0.8% on a quarter-on-quarter basis for the period from October to December
2015. Thereafter, for the period from January to March 2016, they increased by 0.6% on a quarter-on-quarter basis.

The ratio
of imports of goods and services to Japanese GDP was about 15%, and imports of goods and services decreased by 0.1% for the fiscal year ended March 31, 2016. For the period from April to June 2015, imports of goods and services decreased by 2.5% on
a quarter-on-quarter basis. Thereafter, they increased by 1.7% on a quarter-on-quarter basis for the period from July to September 2015, reflecting the robust domestic demand, although they decreased by 1.1% on a quarter-on-quarter basis for the
period from October to December 2015. Thereafter, for the period from January to March 2016, they decreased by 0.4% on a quarter-on-quarter basis.

Industrial production, as a whole, was flat throughout the fiscal year ended March 31, 2016.

The employment situation improved during the fiscal year ended March 31, 2016. The active job openings-to-applicants ratio continued to improve as a whole. In addition, the unemployment rate remained
relatively low, and it was 3.2% in March 2016, a decrease of 0.2% from the same month of the previous year, based on the Labor Force Survey by the Statistics Bureau in the Ministry of Internal Affairs and Communications. For the periods from April
to June 2015 and July to September 2015, compensation of employees increased, on a quarter-on-quarter basis, by 0.1% and 0.8%, respectively. Thereafter, for the periods from October to December 2015 and January to March 2016, it increased, on a
quarter-on-quarter basis, by 0.5% and 1.3%, respectively.

Further, according to Teikoku Databank, a research institution in
Japan, there were approximately 8,400 corporate bankruptcies in Japan during the fiscal year ended March 31, 2016, a decrease of 7.0% from the previous fiscal year, involving approximately ¥1.9 trillion in total liabilities, an increase of 1.0%
from the previous fiscal year.

In Japanese financial and capital markets, the uncollateralized overnight call rate, which is
the benchmark short-term interest rate, remained at relatively low levels during the fiscal year ended March 31, 2016, due to the ongoing provision of ample funds by the BOJ. In particular, following the introduction of a negative interest rate
policy by the BOJ in February 2016 as part of the BOJs quantitative and qualitative monetary easing, it further declined. The yield on newly issued Japanese government bonds with a maturity of 10 years, which is the benchmark long-term
interest rate, remained at relatively low levels, declining to minus 0.029% at March 31, 2016, due to the introduction of the negative interest rate policy mentioned above.

The Nikkei Stock Average, which is a price-weighted average of 225 stocks listed on the Tokyo Stock Exchange First Section, rose from ¥19,206.99 at March 31, 2015 to ¥20,868.03 at June 24, 2015,
its highest closing level since December 1996, reflecting the improvement in corporate earnings. However, it then dropped to ¥16,758.67 at March 31, 2016, reflecting the sudden fall in the Chinese stock market and other factors.

The yen appreciated against the U.S. dollar from ¥120.21 at March 31, 2015 to ¥112.43 at March 31, 2016, according to the
statistical data published by the BOJ.



59



---

##### Table of Contents

As for the global economy for the fiscal year ended March 31, 2016, economies of developed
countries such as the U.S. and certain European countries continued to recover gradually, despite a slowdown in the pace of growth of emerging economies.

The U.S. economy continued to recover for the fiscal year ended March 31, 2016, supported by robust household spending, although the corporate sector was relatively weak. The European economy continued to
steadily recover for the fiscal year ended March 31, 2016. On the other hand, the growth momentum in China and other Asian economies continued to be slow for the fiscal year ended March 31, 2016. For further information on exposures to certain
European countries, see Item 5.A. Operating ResultsFinancial ConditionExposures to Selected European Countries.

In addition to economic factors and conditions, we expect that our results of operations and financial condition will be significantly affected by regulatory trends.

To address perceived weaknesses in financial regulation revealed by the global financial crisis, regulatory authorities in Japan and
foreign countries have been and may continue taking significant steps to enhance regulation of the financial sector. The BCBS and other international bodies are leading efforts to formulate enhanced regulations, including in the areas of capital
adequacy and liquidity. The BCBS published the Basel III rules text in December 2010, reflecting agreement on global regulatory standards on capital adequacy and liquidity of internationally active banks. The new rules started to be phased in on
January 1, 2013 and will be fully applied from January 2019. To reflect the principal risk-weighted capital measures of the Basel III rules text, the FSA has promulgated new capital adequacy requirements which started to be phased in on March 31,
2013 and will be fully applied from March 31, 2019. For a more detailed description of the capital adequacy rules based on Basel III, see Item 4.B. Business OverviewRegulations in Japan.

In the United States, the Dodd-Frank Act which was enacted in July 2010, provides a broad framework for significant regulatory changes
across most areas of U.S. financial regulation. The Dodd-Frank Act addresses, among other issues, systemic risk oversight, bank capital standards, the resolution of failing systemically significant U.S. financial institutions, OTC derivatives, the
ability of banking entities to engage in proprietary trading activities and invest in hedge funds and private equity funds, consumer and investor protection, hedge fund registration, and securitization. For a more detailed description of the
Dodd-Frank Act, see Item 4.B. Business OverviewRegulations in the United States.

For a more
detailed description of regulations to which we are subject, risks associated with regulatory development and our management policy under this environment, see Item 3.D. Risk FactorsRisks Related to Our Business, and Risks Related to Our
Industry, Item 4.B. Business OverviewRegulations in Japan, Regulations in the United States, Regulations in Other Jurisdictions and Description of Operations and Principal ActivitiesManagement Policies.

Factors Affecting Results of Operation

Income (Loss)

We have three principal sources of operating income:
net interest income, net fee and commission income, and net income from trading/investment securities.

Net Interest
Income. Net interest income, or the difference between interest income and interest expense, is determined by:



| |  |  | the amount of interest-earning assets and interest-bearing liabilities;
| | - |  | -----------------------------------------------------------------------



| |  |  | the interest spread;
| | - |  | --------------------



| |  |  | the general level of interest rates; and
| | - |  | ----------------------------------------



| |  |  | the proportion of interest-earning assets to interest-bearing liabilities.
| | - |  | --------------------------------------------------------------------------



60



---

##### Table of Contents

Our principal interest-earning assets are loans and advances, investment securities, and
deposits with banks. Our principal interest-bearing liabilities are deposits, borrowings and debt securities in issue. The interest income and expense on trading assets and liabilities are not included in net interest income. Our net interest income
is earned mainly by the Bank. The Bank controls its exposure to interest rate fluctuations through asset and liability management operations.

The Bank, like other banks in Japan, makes most domestic loans based on a short-term interest rate, the TIBOR, or a short-term prime rate, which are generally intended to reflect its cost of short-term
yen funding. The Banks short-term prime rate is affected mainly by changes in the policy interest rates set by the BOJ, which is an uncollateralized overnight call rate.

Prime rates in Japan have been relatively stable since 2000. This is mainly because short-term interest rates, for example, the three-month TIBOR, have declined to nearly zero, and prime rates, which are
adjusted according to changes in short-term interest rates, had little room for further decline. The BOJ lowered its target for the uncollateralized overnight call rate from 0.5% to 0.3% in October 2008 and by an additional 0.2 percentage points to
0.1% in December 2008 in order to address market conditions. Following these policy interest rate changes, we lowered our short-term prime rate by 0.2 percentage points from 1.675% to 1.475% in January 2009 and our ordinary deposit rate by 0.02
percentage points from 0.04% to 0.02% in September 2010. In October 2010, the BOJ lowered its target for the uncollateralized overnight call rate to a range of 0% to 0.1% to pursue a virtual zero interest rate policy. In February 2012, the BOJ
clarified its monetary policy stance to enhance monetary easing, with the aim of achieving the goal of 1% year-on-year rate of increase in the consumer price index (CPI). Moreover, in January 2013, the BOJ decided to set the price
stability target at 2% in terms of the year-on-year rate of increase in the CPI and pursue aggressive monetary easing. In order to achieve the price stability target at the earliest possible time, the BOJ announced in April 2013 the introduction of
quantitative and qualitative monetary easing including doubling the monetary base and the amounts outstanding of Japanese government bonds as well as exchange-traded funds in two years. In addition, the BOJ announced on October 31, 2014
the expansion of its quantitative and qualitative monetary easing and on December 18, 2015 the introduction of supplementary measures for quantitative and qualitative monetary easing. On January 29, 2016, the BOJ announced
the introduction of quantitative and qualitative monetary easing with a negative interest rate (negative interest rate policy), and began to implement a negative interest rate policy on February 16, 2016. Under the negative
interest rate policy, the BOJ has adopted a multi-tier system where the outstanding balance of each financial institutions current account at the BOJ is divided into three tiers, to each of which a positive interest rate, a zero interest rate
and a negative interest rate of minus 0.1 percent are applied, respectively. After these policy interest rate changes, the Bank lowered its ordinary deposit rate by 0.019 percentage points from 0.02% to 0.001% in February 2016.

The following table sets forth the Banks short-term prime rate, three-month TIBOR, ordinary deposit rate, long-term prime rate and
ten-year swap rate, at the dates indicated:



|                      |  |              |       |   |      |  |       |      |  |  |       |  
|--------------------- |  | ------------ | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                      |  | At March 31, |      
|                      |  | 2016         |       |   | 2015 |  |       | 2014 | 
|Short-term prime rate |  |              | 1.475 | % |      |  | 1.475 | %    |  |  | 1.475 | %
|Three-month TIBOR     |  |              | 0.099 |   |      |  | 0.172 |      |  |  | 0.212 |  
|Ordinary deposit rate |  |              | 0.001 |   |      |  | 0.020 |      |  |  | 0.020 |  
|Long-term prime rate  |  |              | 0.950 |   |      |  | 1.150 |      |  |  | 1.200 |  
|Ten-year swap rate    |  |              | 0.149 |   |      |  | 0.576 |      |  |  | 0.825 |  

It is difficult to earn a wide interest spread when interest rates are at a low level, as they currently
are in Japan. When interest rates rise from extremely low levels, interest spreads at commercial banks generally increase. However, interest spreads may temporarily decrease immediately after an increase in interest rates because it may take time
for banks to increase lending rates correspondingly, in contrast to their funding rates. After an adjustment period, lending rates generally also increase and banks are able to secure a wider interest



61



---

##### Table of Contents

spread than in a low interest rate environment. Conversely, interest spreads may temporarily increase immediately after a decrease in interest rates because it may take time for banks to decrease
lending rates correspondingly, in contrast to their funding rates. After an adjustment period, lending rates generally also decrease and banks generally are not able to maintain a wide interest spread. While various factors may affect the level of
net interest income, generally the loan-to-deposit interest spread increases when short-term interest rates rise, particularly in the current low interest-rate environment.

Net Fee and Commission Income. We earn fees and commissions from a variety of services. The primary components of the Banks net fee and commission income are fees and commissions related to
money remittances and transfers, investment trusts, loans (such as loan commitment fees and loan arrangement fees), securities transactions (such as bond trustee fees and bond recording agency fees) and guarantees and acceptances. Other fees and
commissions include fees from investment banking and electronic banking.

In addition, we earn a significant amount of fees
and commissions from our credit card business, conducted through Sumitomo Mitsui Card and Cedyna, and from our securities business, conducted through SMBC Nikko Securities and SMBC Friend Securities. The principal components of Sumitomo Mitsui
Cards and Cedynas fees and commissions are membership fees from retailers and annual cardholder membership fees, while those of SMBC Nikko Securities and SMBC Friend Securities fees and commissions are subscription and agent
commissions from investment trusts and underwriting commissions.

The principal factors affecting fees and commissions are the
demand for the services provided, the fees charged for those services and fees charged by competitors for similar services. The volume of services provided also affects profitability, as our fee businesses have significant economies of scale. In
order to diversify sources of revenue and enhance return on assets, we are expanding our fees and commissions businesses, including sales of investment trusts and life insurance products, and investment banking businesses.

Net Income from Trading/Investment Securities. We undertake significant trading activities involving a variety of financial
instruments, including derivatives. Our income from these activities is subject to volatility caused by, among other things, changes in interest rates, foreign exchange rates, equity prices or other market variables. Any unexpected change in
interest rates could affect the fair value of our interest rate derivative positions and our net income from trading activities. Net trading income consists of margins made on market-making and our customer business as well as changes in fair value
of trading assets and liabilities and derivative financial instruments. It also includes net interest and dividend income on these instruments.

We have substantial investments in debt securities as available-for-sale financial assets. In particular, Japanese government bonds represent a significant part of our bond portfolio. We also own debt
securities denominated in foreign currencies, principally the U.S. dollars. We also have investments in equity securities as available-for-sale financial assets, which include our strategic investments in stocks issued by our customers. Net
investment income includes the gains and losses arising from the sales or redemptions of available-for-sale financial assets and the dividend income earned from available-for-sale equity instruments. Increases in interest rates or declines in equity
prices could substantially decrease the fair value of our available-for-sale financial assets.

Operating income from other
than these three principal sources is included in Net income from financial assets at fair value through profit or loss or Other income. Net income from financial assets at fair value through profit or loss includes gains and
losses arising from sales and the change in the fair value of the instruments such as hybrid instruments classified as financial assets at fair value through profit or loss. It also includes interest and dividend income on these instruments. Other
income consists primarily of income from operating leases conducted by SMFL and income related to IT solution services.



62



---

##### Table of Contents

Expenses

Impairment Charges on Financial Assets. Our impairment charges are recorded primarily due to impairment on loans and advances and
on investment securities.

Impairment charges on loans and advances are affected by the economic environment and financial
conditions of borrowers. During periods of economic slowdown, corporate and individual borrowers are generally more likely to suffer credit rating downgrades, or become delinquent or default on their borrowings. The slowdown in the domestic or
global economy may increase credit costs relating to a wide range of industries.

Declines in market prices for domestic and
foreign investment securities may result in our recording impairment charges. We assess at the end of each reporting period whether there is any objective evidence that a financial asset or a group of financial assets is impaired. In the case of
equity instruments classified as available-for-sale, a significant or prolonged decline in the fair value of the instrument below its cost is also considered to be such evidence in determining whether the assets are impaired. If any such evidence
exists for available-for-sale financial assets, the cumulative loss, measured as the difference between the cost and the current fair value less any impairment charges on that financial asset previously recognized in profit or loss, is removed from
equity and recognized in profit or loss.

General and Administrative Expenses. General and administrative expenses
consist primarily of personnel expenses (salaries and related expenses), depreciation and amortization expenses, and other expenses (rent and lease expenses, premiums for deposit insurance, publicity and advertising expenses, and communication
expenses).

Other Expenses. Other expenses consist primarily of cost of operating leases, costs related to IT solution
services and IT systems, losses on disposal of property, plant and equipment, and other intangible assets, and impairment losses of property, plant and equipment.

Unrealized Gains or Losses on Investment Securities Portfolio

Changes in the fair value of domestic and foreign investment securities result in an increase or a decrease in unrealized gains or losses
on available-for-sale financial assets. Unrealized gains or losses arising from changes in the fair value of the investments in these securities are recognized directly in equity, until they are derecognized or impaired.

Most of our domestic equity instruments consist of publicly traded Japanese stocks. The Nikkei Stock Average increased by 29.5% from
¥14,827.83 at March 31, 2014, to ¥19,206.99 at March 31, 2015, and decreased by 12.7% to ¥16,758.67 at March 31, 2016. At March 31, 2016, we had net unrealized gains on domestic equity securities of ¥2,348,888 million, a decrease of
¥682,838 million from ¥3,031,726 million at March 31, 2015. For more information, see Item 5.A. Operating ResultsFinancial ConditionInvestment Securities.

Strengthening of Equity Capital

In response to the imposition of more stringent regulatory capital requirements, we have been taking a proactive approach to managing our risk-weighted capital ratio by focusing on increasing qualifying
capital, including by building up our retained earnings, identifying risks, and controlling risk-weighted assets.

Foreign Currency Fluctuations

The average exchange rate used to convert dollars to yen in the consolidated financial statements included elsewhere in this annual report for the fiscal year ended March 31, 2016 was ¥120.16 per
$1.00, compared to the



63



---

##### Table of Contents

previous fiscal years average exchange rate of ¥109.76 per $1.00. The percentage of revenue we earned from our foreign operations for the fiscal years ended March 31, 2016 and 2015 was
23% and 24%, respectively. For more information, see Item 4.B. Business OverviewRevenues by Region.

Critical Accounting
Estimates and Judgments

Our financial position and results of operations are influenced by estimates and judgments that
management employs in the course of preparation of our consolidated financial statements. We identified the following areas of significant accounting policies to be particularly sensitive in terms of estimates and judgments made by management.
Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable.

Allowance for Loan Losses

Allowance for loan losses represents
managements estimate of the losses incurred in the loan portfolios at the end of each reporting period. Management exercises judgments in making assumptions and estimations when calculating the allowance for loan losses on both individually
and collectively assessed loans.

The allowance for loan losses for individually significant impaired loans is estimated by
management based on the expected future cash flows, taking into account factors such as historical loss information, the appropriateness of the borrowers business plan or operational improvement plan, the status of progress of its plan, the
overall support from financial institutions, and the realizable value of any collateral held. The allowance for loan losses is the difference between the carrying amount of a loan and the discounted present value of expected future cash flows that
are estimated by management. The actual future cash flows may differ from the estimates by management and consequently may cause actual loan losses to differ from the reported allowance for loan losses.

The allowance for loan losses for impaired loans that are not individually significant and non-impaired loans is collectively calculated
based on the historical loss experience for loans which have similar credit risk characteristics to those in the current loan portfolio using statistical methods. These statistical methods are subject to estimation uncertainty. In normal
circumstances, the use of statistical methods evidenced by historical information provides the most objective methodology in assessing inherent losses on loans with similar credit risk characteristics. However, in certain circumstances, the use of
historical loss experience alone may not be representative of current loss experiences and as a result it may provide less relevant information about the loss incurred in a given portfolio at the end of the reporting period, particularly in a
situation where there have been changes in economic conditions. In these circumstances, we make a judgment to update the historical loss experience based on the most recent loss information, taking into account, among others, the effect of the
current economic environment. To estimate the allowance for loan losses for non-impaired loans, which reflects incurred but not yet identified losses for the period between the impairment occurring and the loss being identified, management develops
assumptions and methodologies to estimate the loss identification period.

Management estimates and judgments may change from
time to time as the economic environment changes or new information becomes available. Changes in these estimates and judgments will result in a different allowance for loan losses and may have a direct impact on impairment charges. Impairment
charges on loans and advances amounting to ¥118,750 million and ¥79,552 million were recognized for the fiscal years ended March 31, 2016 and 2015 respectively, whereas previously recognized impairment charges on loans and advances
amounting to ¥25,806 million were reversed for the fiscal year ended March 31, 2014.

Fair Value of Financial
Instruments

Some of our financial instruments are measured at fair value with changes in fair value recognized in
profit or loss, such as trading assets and liabilities, financial assets at fair value through profit or loss, and derivative financial instruments. Available-for-sale financial assets are also measured at fair value with changes in fair value
reported in other comprehensive income.



64



---

##### Table of Contents

The fair value of a financial instrument is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Our financial assets and liabilities measured at fair value are mostly valued based on quoted prices in active markets, or using
valuation techniques that incorporate inputs, other than quoted market prices, that are observable either directly or indirectly in the market, including dealers quotes. We principally use valuation techniques that are commonly used by market
participants to price the instruments. To the extent practical, the valuation models make maximum use of observable data. However, for certain financial assets and liabilities, the fair values are measured by using valuation techniques with
significant unobservable inputs. In such cases, significant management estimates are made, resulting in a less objective measurement of fair value.

The risk management departments in each subsidiary regularly review significant valuation methodologies and recalibrate model parameters and inputs, both observable and unobservable, in an effort to
ensure an appropriate estimation of fair value has been made. Where significant management judgments are required in valuation, we establish a valuation control framework to validate the valuation models and fair values calculated based on such
valuation models. Under the framework, the accounting department is responsible for ensuring that the accounting policies and procedures to determine the fair values are in compliance with the relevant accounting standards.

If the fair value at the trade date, which is measured using a valuation technique with significant unobservable inputs, differs from the
transaction price, any gain or loss on the trade date is adjusted to be deferred. Management judgment is required to determine whether significant unobservable inputs exist in the valuation technique.

The financial assets and liabilities are classified into one of three levels within a fair value hierarchy based on the inputs used in
the fair value measurement. The three levels of the fair value hierarchy are as follows:



| |  |  | Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly;
and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 3. Significant unobservable inputs for the asset or liability.
| | - |  | --------------------------------------------------------------------

Management judgment is involved in determining the level of hierarchy to which each financial instrument should be categorized and in
periodical assessments of market liquidity for inputs and price transparency.

In addition to the fair value hierarchy
disclosure, we provide a sensitivity analysis of the impact on the Level 3 financial instruments carried at fair value by using reasonably possible alternatives for the unobservable parameters in Note 43 Fair Value of Financial Assets and
Liabilities to our consolidated financial statements included elsewhere in this annual report. The determination of reasonably possible alternatives requires significant management judgment.

Impairment of Available-for-sale Financial Assets

Available-for-sale financial assets are measured at fair value with changes in fair value reported in available-for-sale financial assets reserve as a separate component of equity until the financial
assets are either derecognized or become impaired. If there is objective evidence of impairment as a result of loss events which have an impact on the estimated future cash flows of the financial assets that can be reliably estimated, the cumulative
loss previously recognized in equity is removed and recognized in profit or loss as an impairment charge.

We exercise
judgment in determining whether there is objective evidence of occurrence of loss events which result in a decrease in estimated future cash flows. The estimation of future cash flows also requires judgment. In



65



---

##### Table of Contents

the assessment of impairment of available-for-sale equity instruments, we also consider whether there has been a significant or prolonged decline in fair value below their cost. The determination
of what is a significant or prolonged decline requires management judgment.

Impairment may occur when there is objective
evidence of deterioration in the financial conditions of the investee, industry and sector performance, or changes in operating and financing cash flows. The determination of impairment in this respect also includes significant management judgment.

Management estimates and judgments may change from time to time upon future events that may or may not occur and changes in
these estimates and judgments could adversely affect the carrying amounts of available-for-sale financial assets. Impairment charges on available-for-sale financial assets reclassified from equity to profit or loss totaled ¥29,606 million,
¥10,586 million and ¥11,531 million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively.

Impairment of Goodwill

Goodwill is tested for impairment at least annually and whenever events or changes in circumstances indicate that it may be impaired. The first step of the impairment test is identifying the
cash-generating units (CGUs), which represent the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. Goodwill is then allocated to the
CGUs, considering how the goodwill is recognized and other relevant factors.

In the impairment test, the carrying amount of
the CGU to which goodwill is allocated is compared against its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. Such recoverable amounts are determined based on significant management judgments and
assumptions.

We determine the recoverable amount using the estimated future cash flows, pre-tax discount rates, growth rates
and other factors. The estimation of future cash flows inherently reflects management judgments, even though such forecasts are prepared taking into account actual past performance and external economic data. The pre-tax discount rates and growth
rates may be significantly affected by market interest rates or other market conditions, which are beyond managements control, and therefore significant management judgments are made to determine these assumptions.

These management judgments are made based on the facts and circumstances at the time of the impairment test, and may vary depending on
the situation and time. Changes in management judgments may result in different impairment test results and different impairment losses recognized. For the fiscal years ended March 31, 2016, 2015 and 2014, impairment losses on goodwill were
¥1,124 million, nil and nil, respectively.

Provision for Interest Repayment

Provision for interest repayment represents managements estimate of future claims for the refund of gray zone interest, taking into
account historical experience such as the number of customer claims for a refund, the amount of repayments and the characteristics of customers, and the length of the period during which claims are expected to be received in the future.

Management estimates and judgments may change from time to time as the legal environment and market conditions change or new information
becomes available. Changes in these estimates and judgments could affect the balance of provision for interest repayment. Provision for interest repayment is recorded in provisions as a liability, and it totaled ¥229,422 million and ¥166,715
million at March 31, 2016 and 2015, respectively.



66



---

##### Table of Contents

Retirement Benefits

We have defined benefit plans such as defined benefit pension plans and lump-sum severance indemnity plans. The present value of the
defined benefit obligation is calculated based on actuarial valuations that are dependent upon a number of assumptions, including discount rates, mortality rates and future salary (benefit) increases. The discount rates are equivalent to market
yields of AA credit-rated corporate bonds that have terms to maturity approximating those of the related obligations. Future mortality rates are based on the official mortality table generally used for actuarial assumptions in Japan. Other
assumptions used for the calculation of the defined benefit obligation are based on historical records. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty. While we believe that these assumptions are
appropriate, any change in these assumptions will impact actuarial gains and losses, as well as the present value of the defined benefit obligations and the net retirement benefit expense for each period. Actuarial gains and losses arising from
experience adjustments and changes in actuarial assumptions in the year, and return on plan assets excluding interest income are recognized in other comprehensive income and are never reclassified to profit or loss.

The difference between the fair value of the plan assets and the present value of the defined benefit obligation at the end of the
reporting period is recognized as assets and liabilities in the consolidated statement of financial position. When this calculation for each plan results in a benefit to us, the recognized asset is limited to the present value of any economic
benefits available in the form of refunds from the plan or reductions in future contributions to the plan. An economic benefit is available to us, if it is realizable during the life of the plan or on settlement of the plan obligation. The net total
of assets and liabilities in the consolidated statement of financial position amounted to net assets of ¥177,112 million and ¥332,674 million at March 31, 2016 and 2015, respectively.

Deferred Tax Assets

We recognize deferred tax assets relating to tax losses carried forward and deductible temporary differences, only to the extent that it is probable that future taxable profit will be available against
which the tax losses carried forward and the deductible temporary differences can be utilized. This assessment requires significant management judgments and assumptions. Future taxable profit is estimated based on, among other relevant factors,
forecasted results of operations, which are based on historical financial performance and the business plans that management believes to be prudent and feasible. While we carefully assess the realization of tax losses carried forward and deductible
temporary differences, the actual taxable profit in the future may be less than the forecast. The deferred tax assets amounted to ¥115,314 million and ¥117,500 million in the consolidated statement of financial position at March 31, 2016 and
2015, respectively, while the net total of deferred tax assets and liabilities amounted to net liabilities of ¥220,574 million and ¥446,305 million at March 31, 2016 and 2015, respectively.

New and Amended Accounting Standards and Recent Accounting Pronouncements

See New and Amended Accounting Standards Adopted by the SMFG Group and Recent Accounting Pronouncements under Note 2 Summary of Significant Accounting Policies to our
consolidated financial statements included elsewhere in this annual report.

5.A.    OPERATING RESULTS

Under the economic and financial circumstances described in Item 5. Operating and Financial Review and
ProspectsOverviewOperating Environment, we made a profit through our commercial banking and other financial services businesses. Our total operating income increased by ¥355,793 million from ¥3,332,433 million for the
fiscal year ended March 31, 2015 to ¥3,688,226 million for the fiscal year ended March 31, 2016, primarily due to an increase in net trading income. Our net profit increased by ¥229,861 million from ¥722,961 million for the fiscal
year ended March 31, 2015 to ¥952,822 million for the fiscal year ended March 31, 2016, due to the increase in total operating income described above, which was partially offset by increases in impairment charges on financial assets and
operating expenses.



67



---

##### Table of Contents

Our total assets increased by ¥991,186 million from ¥179,181,466 million at March
31, 2015 to ¥180,172,652 million at March 31, 2016, primarily due to increases in cash and deposits with banks and loans and advances, which were partially offset by a decrease in investment securities.

Our total liabilities increased by ¥969,937 million from ¥168,160,616 million at March 31, 2015 to ¥169,130,553 million at
March 31, 2016, primarily due to an increase in deposits.

Our total equity increased by ¥21,249 million from
¥11,020,850 million at March 31, 2015 to ¥11,042,099 million at March 31, 2016, primarily due to increases in retained earnings and equity attributable to other equity instruments holders, which were partially offset by a decrease in
other reserves.

Operating Results

The following table presents information as to our income, expenses and net profit for the fiscal years ended March 31, 2016, 2015 and 2014.



|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|--------------------------------------------------------------------- |  | ------------------------------------ | --------- |  | ---- | - | --------- | ---- |  | - | --------- | -
|                                                                      |  | For the fiscal year ended March 31,  |          
|                                                                      |  | 2016                                 |           |  | 2015 |   |           | 2014 | 
|                                                                      |  | (In millions, except per share data) |          
|Interest income                                                       |  | ¥                                    | 1,872,584 |  |      | ¥ | 1,782,621 |      |  | ¥ | 1,714,044 |  
|Interest expense                                                      |  |                                      | 431,101   |  |      |   | 371,107   |      |  |   | 320,511   |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net interest income                                                   |  |                                      | 1,441,483 |  |      |   | 1,411,514 |      |  |   | 1,393,533 |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Fee and commission income                                             |  |                                      | 1,031,680 |  |      |   | 1,002,766 |      |  |   | 1,003,169 |  
|Fee and commission expense                                            |  |                                      | 131,381   |  |      |   | 129,253   |      |  |   | 127,959   |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net fee and commission income                                         |  |                                      | 900,299   |  |      |   | 873,513   |      |  |   | 875,210   |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net trading income                                                    |  |                                      | 462,682   |  |      |   | 127,759   |      |  |   | 135,218   |  
|Net income from financial assets at fair value through profit or loss |  |                                      | 12,260    |  |      |   | 22,678    |      |  |   | 58,586    |  
|Net investment income                                                 |  |                                      | 375,229   |  |      |   | 371,064   |      |  |   | 332,265   |  
|Other income                                                          |  |                                      | 496,273   |  |      |   | 525,905   |      |  |   | 429,541   |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Total operating income                                                |  |                                      | 3,688,226 |  |      |   | 3,332,433 |      |  |   | 3,224,353 |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Impairment charges (reversals) on financial assets                    |  |                                      | 148,356   |  |      |   | 90,138    |      |  |   | (14,275   | )
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net operating income                                                  |  |                                      | 3,539,870 |  |      |   | 3,242,295 |      |  |   | 3,238,628 |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|General and administrative expenses                                   |  |                                      | 1,706,263 |  |      |   | 1,621,897 |      |  |   | 1,522,990 |  
|Other expenses                                                        |  |                                      | 538,963   |  |      |   | 505,614   |      |  |   | 428,780   |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Operating expenses                                                    |  |                                      | 2,245,226 |  |      |   | 2,127,511 |      |  |   | 1,951,770 |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Share of post-tax profit of associates and joint ventures             |  |                                      | 31,056    |  |      |   | 18,124    |      |  |   | 19,454    |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Profit before tax                                                     |  |                                      | 1,325,700 |  |      |   | 1,132,908 |      |  |   | 1,306,312 |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Income tax expense                                                    |  |                                      | 372,878   |  |      |   | 409,947   |      |  |   | 414,076   |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net profit                                                            |  | ¥                                    | 952,822   |  |      | ¥ | 722,961   |      |  | ¥ | 892,236   |  
|                                                                      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Profit attributable to:                                               |  |                                      |           |  |      |   |           |      |  |   |           |  
|Shareholders of Sumitomo Mitsui Financial Group, Inc.                 |  | ¥                                    | 843,920   |  |      | ¥ | 614,070   |      |  | ¥ | 766,388   |  
|Non-controlling interests                                             |  |                                      | 106,129   |  |      |   | 108,891   |      |  |   | 125,848   |  
|Other equity instruments holders                                      |  |                                      | 2,773     |  |      |   |          |      |  |   |          |  
|Earnings per share:                                                   |  |                                      |           |  |      |   |           |      |  |   |           |  
|Basic                                                                 |  | ¥                                    | 617.25    |  |      | ¥ | 449.13    |      |  | ¥ | 560.97    |  
|Diluted                                                               |  |                                      | 616.83    |  |      |   | 448.86    |      |  |   | 560.68    |  



68



---

##### Table of Contents

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Total operating income increased by ¥355,793 million, or 11%, from ¥3,332,433 million for the fiscal year ended
March 31, 2015 to ¥3,688,226 million for the fiscal year ended March 31, 2016, primarily due to increases in net trading income of ¥334,923 million. Although impairment charges on financial assets increased, net operating income also
increased by ¥297,575 million from ¥3,242,295 million for the fiscal year ended March 31, 2015 to ¥3,539,870 million for the fiscal year ended March 31, 2016, due to the increase in total operating income described above.

Net profit increased by ¥229,861 million from ¥722,961 million for the fiscal year ended March 31, 2015 to
¥952,822 million for the fiscal year ended March 31, 2016, as a result of the increase in net operating income described above, which was partially offset by increases in general and administrative expenses and other expenses.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Total operating income increased by ¥108,080 million, or 3%, from ¥3,224,353 million for the fiscal year ended March 31, 2014 to
¥3,332,433 million for the fiscal year ended March 31, 2015, primarily due to increases in net investment income of ¥38,799 million and other income of ¥96,364 million as discussed in detail below. Although impairment charges on
financial assets increased, net operating income also increased by ¥3,667 million from ¥3,238,628 million for the fiscal year ended March 31, 2014 to ¥3,242,295 million for the fiscal year ended March 31, 2015, due to the increase
in total operating income described above.

Net profit decreased by ¥169,275 million from ¥892,236 million for the
fiscal year ended March 31, 2014 to ¥722,961 million for the fiscal year ended March 31, 2015, as a result of increases in general and administrative expenses and other expenses.



69



---

##### Table of Contents

Net Interest Income

The following tables show the average balances of our statement of financial position items, related interest income, interest expense,
net interest income and average rates for the fiscal years ended March 31, 2016, 2015 and 2014.



|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|------------------------------------------------------------------------- |  | ----------------------------------- | ----------- |  | -------------- | - | --------- | ----------- |  |  | ----------------- | - |  | -------------- | ----------- |  | ----------- | - | --------- | ----------------- |  |  | -------------- | - |  | ----------- | ----------- |  |  | - | --------- |  |  |  | ---- | -
|                                                                          |  | For the fiscal year ended March 31, |            
|                                                                          |  | 2016                                |             |  | 2015           |   |           | 2014        | 
|                                                                          |  | Averagebalance(3)                   |             |  | Interestincome |   |           | Averagerate |  |  | Averagebalance(3) |   |  | Interestincome |             |  | Averagerate |   |           | Averagebalance(3) |  |  | Interestincome |   |  | Averagerate |            
|                                                                          |  | (In millions, except percentages)   |            
|Interest-earning assets:                                                  |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Interest-earning deposits with other banks:                               |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                                          |  | ¥                                   | 768,976     |  |                | ¥ | 4,771     |             |  |  | 0.62              | % |  | ¥              | 741,738     |  |             | ¥ | 4,548     |                   |  |  | 0.61           | % |  | ¥           | 609,023     |  |  | ¥ | 2,807     |  |  |  | 0.46 | %
|Foreign offices                                                           |  |                                     | 5,786,836   |  |                |   | 35,701    |             |  |  | 0.62              | % |  |                | 5,892,983   |  |             |   | 37,348    |                   |  |  | 0.63           | % |  |             | 6,027,100   |  |  |   | 34,521    |  |  |  | 0.57 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                                     |  |                                     | 6,555,812   |  |                |   | 40,472    |             |  |  | 0.62              | % |  |                | 6,634,721   |  |             |   | 41,896    |                   |  |  | 0.63           | % |  |             | 6,636,123   |  |  |   | 37,328    |  |  |  | 0.56 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Call loans and bills bought:                                              |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                                          |  |                                     | 147,992     |  |                |   | 861       |             |  |  | 0.58              | % |  |                | 226,409     |  |             |   | 1,177     |                   |  |  | 0.52           | % |  |             | 273,903     |  |  |   | 1,583     |  |  |  | 0.58 | %
|Foreign offices                                                           |  |                                     | 967,442     |  |                |   | 20,967    |             |  |  | 2.17              | % |  |                | 972,643     |  |             |   | 17,429    |                   |  |  | 1.79           | % |  |             | 1,154,049   |  |  |   | 16,559    |  |  |  | 1.43 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                                     |  |                                     | 1,115,434   |  |                |   | 21,828    |             |  |  | 1.96              | % |  |                | 1,199,052   |  |             |   | 18,606    |                   |  |  | 1.55           | % |  |             | 1,427,952   |  |  |   | 18,142    |  |  |  | 1.27 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Reverse repurchase agreements and cash collateral on securities borrowed: |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                                          |  |                                     | 6,675,810   |  |                |   | 10,763    |             |  |  | 0.16              | % |  |                | 4,766,205   |  |             |   | 7,875     |                   |  |  | 0.17           | % |  |             | 3,749,260   |  |  |   | 7,339     |  |  |  | 0.20 | %
|Foreign offices                                                           |  |                                     | 741,623     |  |                |   | 11,248    |             |  |  | 1.52              | % |  |                | 726,427     |  |             |   | 9,146     |                   |  |  | 1.26           | % |  |             | 419,274     |  |  |   | 7,631     |  |  |  | 1.82 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                                     |  |                                     | 7,417,433   |  |                |   | 22,011    |             |  |  | 0.30              | % |  |                | 5,492,632   |  |             |   | 17,021    |                   |  |  | 0.31           | % |  |             | 4,168,534   |  |  |   | 14,970    |  |  |  | 0.36 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Held-to-maturity investments(1):                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                                          |  |                                     | 2,964,539   |  |                |   | 12,880    |             |  |  | 0.43              | % |  |                | 4,086,502   |  |             |   | 20,509    |                   |  |  | 0.50           | % |  |             | 5,238,921   |  |  |   | 30,303    |  |  |  | 0.58 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                                     |  |                                     | 2,964,539   |  |                |   | 12,880    |             |  |  | 0.43              | % |  |                | 4,086,502   |  |             |   | 20,509    |                   |  |  | 0.50           | % |  |             | 5,238,921   |  |  |   | 30,303    |  |  |  | 0.58 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Available-for-sale financial
assets(1):                                   |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                                          |  |                                     | 10,878,176  |  |                |   | 38,701    |             |  |  | 0.36              | % |  |                | 10,385,945  |  |             |   | 32,703    |                   |  |  | 0.31           | % |  |             | 12,119,698  |  |  |   | 35,539    |  |  |  | 0.29 | %
|Foreign offices                                                           |  |                                     | 2,425,249   |  |                |   | 33,331    |             |  |  | 1.37              | % |  |                | 2,250,294   |  |             |   | 29,282    |                   |  |  | 1.30           | % |  |             | 1,780,684   |  |  |   | 19,956    |  |  |  | 1.12 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                                     |  |                                     | 13,303,425  |  |                |   | 72,032    |             |  |  | 0.54              | % |  |                | 12,636,239  |  |             |   | 61,985    |                   |  |  | 0.49           | % |  |             | 13,900,382  |  |  |   | 55,495    |  |  |  | 0.40 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Loans and advances(2):                                                    |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                                          |  |                                     | 63,177,259  |  |                |   | 1,091,538 |             |  |  | 1.73              | % |  |                | 62,005,587  |  |             |   | 1,099,119 |                   |  |  | 1.77           | % |  |             | 61,524,516  |  |  |   | 1,138,102 |  |  |  | 1.85 | %
|Foreign offices                                                           |  |                                     | 26,272,983  |  |                |   | 611,823   |             |  |  | 2.33              | % |  |                | 23,292,666  |  |             |   | 523,485   |                   |  |  | 2.25           | % |  |             | 19,553,229  |  |  |   | 419,704   |  |  |  | 2.15 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                                     |  |                                     | 89,450,242  |  |                |   | 1,703,361 |             |  |  | 1.90              | % |  |                | 85,298,253  |  |             |   | 1,622,604 |                   |  |  | 1.90           | % |  |             | 81,077,745  |  |  |   | 1,557,806 |  |  |  | 1.92 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total interest-earning assets:                                            |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                                          |  |                                     | 84,612,752  |  |                |   | 1,159,514 |             |  |  | 1.37              | % |  |                | 82,212,386  |  |             |   | 1,165,931 |                   |  |  | 1.42           | % |  |             | 83,515,321  |  |  |   | 1,215,673 |  |  |  | 1.46 | %
|Foreign offices                                                           |  |                                     | 36,194,133  |  |                |   | 713,070   |             |  |  | 1.97              | % |  |                | 33,135,013  |  |             |   | 616,690   |                   |  |  | 1.86           | % |  |             | 28,934,336  |  |  |   | 498,371   |  |  |  | 1.72 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                                     |  | ¥                                   | 120,806,885 |  |                | ¥ | 1,872,584 |             |  |  | 1.55              | % |  | ¥              | 115,347,399 |  |             | ¥ | 1,782,621 |                   |  |  | 1.55           | % |  | ¥           | 112,449,657 |  |  | ¥ | 1,714,044 |  |  |  | 1.52 | %
|                                                                          |  |                                     |             |  |                |   |           |             |  |  |                   |   |  |                |             |  |             |   |           |                   |  |  |                |   |  |             |             |  |  |   |           |  |  |  |      |  



70



---

##### Table of Contents

|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|------------------------------------------------------------- |  | ----------------------------------- | ----------- |  | --------------- | - | --------- | ----------- |  |  | ----------------- | - |  | --------------- | ----------- |  | ----------- | - | --------- | ----------------- |  |  | --------------- | - |  | ----------- | ----------- |  |  | - | --------- |  |  |  | ---- | -
|                                                              |  | For the fiscal year ended March 31, |            
|                                                              |  | 2016                                |             |  | 2015            |   |           | 2014        | 
|                                                              |  | Averagebalance(3)                   |             |  | Interestexpense |   |           | Averagerate |  |  | Averagebalance(3) |   |  | Interestexpense |             |  | Averagerate |   |           | Averagebalance(3) |  |  | Interestexpense |   |  | Averagerate |            
|                                                              |  | (In millions, except percentages)   |            
|Interest-bearing liabilities:                                 |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Deposits:                                                     |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                              |  | ¥                                   | 78,458,170  |  |                 | ¥ | 48,032    |             |  |  | 0.06              | % |  | ¥               | 74,397,836  |  |             | ¥ | 49,356    |                   |  |  | 0.07            | % |  | ¥           | 72,376,165  |  |  | ¥ | 48,446    |  |  |  | 0.07 | %
|Foreign offices                                               |  |                                     | 22,838,530  |  |                 |   | 154,280   |             |  |  | 0.68              | % |  |                 | 21,263,919  |  |             |   | 116,211   |                   |  |  | 0.55            | % |  |             | 17,014,587  |  |  |   | 91,944    |  |  |  | 0.54 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                         |  |                                     | 101,296,700 |  |                 |   | 202,312   |             |  |  | 0.20              | % |  |                 | 95,661,755  |  |             |   | 165,567   |                   |  |  | 0.17            | % |  |             | 89,390,752  |  |  |   | 140,390   |  |  |  | 0.16 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Call money and bills sold:                                    |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                              |  |                                     | 2,199,407   |  |                 |   | 1,524     |             |  |  | 0.07              | % |  |                 | 2,040,724   |  |             |   | 1,504     |                   |  |  | 0.07            | % |  |             | 1,497,244   |  |  |   | 1,222     |  |  |  | 0.08 | %
|Foreign offices                                               |  |                                     | 663,310     |  |                 |   | 4,059     |             |  |  | 0.61              | % |  |                 | 877,127     |  |             |   | 2,510     |                   |  |  | 0.29            | % |  |             | 651,839     |  |  |   | 2,261     |  |  |  | 0.35 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                         |  |                                     | 2,862,717   |  |                 |   | 5,583     |             |  |  | 0.20              | % |  |                 | 2,917,851   |  |             |   | 4,014     |                   |  |  | 0.14            | % |  |             | 2,149,083   |  |  |   | 3,483     |  |  |  | 0.16 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Repurchase agreements and cash collateral on securities lent: |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                              |  |                                     | 7,172,312   |  |                 |   | 8,582     |             |  |  | 0.12              | % |  |                 | 5,584,584   |  |             |   | 6,091     |                   |  |  | 0.11            | % |  |             | 4,167,460   |  |  |   | 4,558     |  |  |  | 0.11 | %
|Foreign offices                                               |  |                                     | 2,009,593   |  |                 |   | 6,523     |             |  |  | 0.32              | % |  |                 | 1,455,125   |  |             |   | 3,829     |                   |  |  | 0.26            | % |  |             | 990,721     |  |  |   | 2,989     |  |  |  | 0.30 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                         |  |                                     | 9,181,905   |  |                 |   | 15,105    |             |  |  | 0.16              | % |  |                 | 7,039,709   |  |             |   | 9,920     |                   |  |  | 0.14            | % |  |             | 5,158,181   |  |  |   | 7,547     |  |  |  | 0.15 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Borrowings:                                                   |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                              |  |                                     | 10,251,890  |  |                 |   | 56,353    |             |  |  | 0.55              | % |  |                 | 9,170,288   |  |             |   | 54,915    |                   |  |  | 0.60            | % |  |             | 5,879,723   |  |  |   | 50,833    |  |  |  | 0.86 | %
|Foreign offices                                               |  |                                     | 823,446     |  |                 |   | 15,850    |             |  |  | 1.92              | % |  |                 | 790,516     |  |             |   | 16,122    |                   |  |  | 2.04            | % |  |             | 787,217     |  |  |   | 17,433    |  |  |  | 2.21 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                         |  |                                     | 11,075,336  |  |                 |   | 72,203    |             |  |  | 0.65              | % |  |                 | 9,960,804   |  |             |   | 71,037    |                   |  |  | 0.71            | % |  |             | 6,666,940   |  |  |   | 68,266    |  |  |  | 1.02 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Debt securities in issue:                                     |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                              |  |                                     | 7,999,705   |  |                 |   | 120,285   |             |  |  | 1.50              | % |  |                 | 7,000,273   |  |             |   | 109,960   |                   |  |  | 1.57            | % |  |             | 6,223,653   |  |  |   | 92,481    |  |  |  | 1.49 | %
|Foreign offices                                               |  |                                     | 3,044,714   |  |                 |   | 14,887    |             |  |  | 0.49              | % |  |                 | 2,819,687   |  |             |   | 9,829     |                   |  |  | 0.35            | % |  |             | 2,355,748   |  |  |   | 7,636     |  |  |  | 0.32 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                         |  |                                     | 11,044,419  |  |                 |   | 135,172   |             |  |  | 1.22              | % |  |                 | 9,819,960   |  |             |   | 119,789   |                   |  |  | 1.22            | % |  |             | 8,579,401   |  |  |   | 100,117   |  |  |  | 1.17 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Other interest-bearing liabilities:                           |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                              |  |                                     | 93,104      |  |                 |   | 676       |             |  |  | 0.73              | % |  |                 | 96,873      |  |             |   | 731       |                   |  |  | 0.75            | % |  |             | 90,049      |  |  |   | 689       |  |  |  | 0.77 | %
|Foreign offices                                               |  |                                     | 1,960       |  |                 |   | 50        |             |  |  | 2.55              | % |  |                 | 3,025       |  |             |   | 49        |                   |  |  | 1.62            | % |  |             | 2,898       |  |  |   | 19        |  |  |  | 0.66 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                         |  |                                     | 95,064      |  |                 |   | 726       |             |  |  | 0.76              | % |  |                 | 99,898      |  |             |   | 780       |                   |  |  | 0.78            | % |  |             | 92,947      |  |  |   | 708       |  |  |  | 0.76 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total interest-bearing liabilities:                           |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Domestic offices                                              |  |                                     | 106,174,588 |  |                 |   | 235,452   |             |  |  | 0.22              | % |  |                 | 98,290,578  |  |             |   | 222,557   |                   |  |  | 0.23            | % |  |             | 90,234,294  |  |  |   | 198,229   |  |  |  | 0.22 | %
|Foreign offices                                               |  |                                     | 29,381,553  |  |                 |   | 195,649   |             |  |  | 0.67              | % |  |                 | 27,209,399  |  |             |   | 148,550   |                   |  |  | 0.55            | % |  |             | 21,803,010  |  |  |   | 122,282   |  |  |  | 0.56 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Total                                                         |  | ¥                                   | 135,556,141 |  |                 | ¥ | 431,101   |             |  |  | 0.32              | % |  | ¥               | 125,499,977 |  |             | ¥ | 371,107   |                   |  |  | 0.30            | % |  | ¥           | 112,037,304 |  |  | ¥ | 320,511   |  |  |  | 0.29 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  
|Net interest income and interest rate spread                  |  |                                     |             |  |                 | ¥ | 1,441,483 |             |  |  | 1.23              | % |  |                 |             |  |             | ¥ | 1,411,514 |                   |  |  | 1.25            | % |  |             |             |  |  | ¥ | 1,393,533 |  |  |  | 1.23 | %
|                                                              |  |                                     |             |  |                 |   |           |             |  |  |                   |   |  |                 |             |  |             |   |           |                   |  |  |                 |   |  |             |             |  |  |   |           |  |  |  |      |  



|(1) | Taxable investment securities and non-taxable investment securities are not disclosed separately because the aggregate effect of these average balances and interest
income would not be material. In addition, the yields on tax-exempt obligations have not been calculated on a tax equivalent basis because the effect of such calculation would not be material.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Loans and advances include impaired loans and advances. The amortized portion of net loan origination fees (costs) is included in interest income on loans and advances.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Average balances are generally based on a daily average. Weekly, month-end or quarter-end averages are used for certain average balances where it is not practical to
obtain applicable daily averages. The allocations of amounts between domestic and foreign are based on the location of the office.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



71



---

##### Table of Contents

The following tables show changes in our interest income, interest expense and net interest
income based on changes in volume and changes in rate for the fiscal year ended March 31, 2016 compared to the fiscal year ended March 31, 2015, and those for the fiscal year ended March 31, 2015 compared to the fiscal year ended March 31, 2014.



|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------ | ------ | - | ------------------------------------------------------------------------------------------------ | - | ------- | ---------- |  | - | ------ | - |  | ---- | ------ | - | ---------- | - | ------- | - |  | - | ------- | -
|                                                                          |  | Fiscal year ended March 31, 2016compared tofiscal year ended March 31, 2015Increase / (decrease) |        |   | Fiscal year ended March 31, 2015compared tofiscal year ended March 31, 2014Increase / (decrease) |  
|                                                                          |  | Volume                                                                                           |        |   | Rate                                                                                             |   |         | Net change |  |   | Volume |   |  | Rate |        |   | Net change |  
|                                                                          |  | (In millions)                                                                                    |       
|Interest income:                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Interest-earning deposits with other banks:                               |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  | ¥                                                                                                | 168    |   |                                                                                                  | ¥ | 55      |            |  | ¥ | 223    |   |  | ¥    | 690    |   |            | ¥ | 1,051   |   |  | ¥ | 1,741   |  
|Foreign offices                                                           |  |                                                                                                  | (663   | ) |                                                                                                  |   | (984    | )          |  |   | (1,647 | ) |  |      | (779   | ) |            |   | 3,606   |   |  |   | 2,827   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | (495   | ) |                                                                                                  |   | (929    | )          |  |   | (1,424 | ) |  |      | (89    | ) |            |   | 4,657   |   |  |   | 4,568   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Call loans and bills bought:                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | (443   | ) |                                                                                                  |   | 127     |            |  |   | (316   | ) |  |      | (258   | ) |            |   | (148    | ) |  |   | (406    | )
|Foreign offices                                                           |  |                                                                                                  | (94    | ) |                                                                                                  |   | 3,632   |            |  |   | 3,538  |   |  |      | (2,845 | ) |            |   | 3,715   |   |  |   | 870     |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | (537   | ) |                                                                                                  |   | 3,759   |            |  |   | 3,222  |   |  |      | (3,103 | ) |            |   | 3,567   |   |  |   | 464     |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Reverse repurchase agreements and cash collateral on securities borrowed: |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 3,080  |   |                                                                                                  |   | (192    | )          |  |   | 2,888  |   |  |      | 1,837  |   |            |   | (1,301  | ) |  |   | 536     |  
|Foreign offices                                                           |  |                                                                                                  | 195    |   |                                                                                                  |   | 1,907   |            |  |   | 2,102  |   |  |      | 4,379  |   |            |   | (2,864  | ) |  |   | 1,515   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | 3,275  |   |                                                                                                  |   | 1,715   |            |  |   | 4,990  |   |  |      | 6,216  |   |            |   | (4,165  | ) |  |   | 2,051   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Held-to-maturity investments:                                             |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | (5,090 | ) |                                                                                                  |   | (2,539  | )          |  |   | (7,629 | ) |  |      | (6,117 | ) |            |   | (3,677  | ) |  |   | (9,794  | )
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | (5,090 | ) |                                                                                                  |   | (2,539  | )          |  |   | (7,629 | ) |  |      | (6,117 | ) |            |   | (3,677  | ) |  |   | (9,794  | )
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Available-for-sale financial assets:                                      |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 1,582  |   |                                                                                                  |   | 4,416   |            |  |   | 5,998  |   |  |      | (5,262 | ) |            |   | 2,426   |   |  |   | (2,836  | )
|Foreign offices                                                           |  |                                                                                                  | 2,347  |   |                                                                                                  |   | 1,702   |            |  |   | 4,049  |   |  |      | 5,785  |   |            |   | 3,541   |   |  |   | 9,326   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | 3,929  |   |                                                                                                  |   | 6,118   |            |  |   | 10,047 |   |  |      | 523    |   |            |   | 5,967   |   |  |   | 6,490   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Loans and advances:                                                       |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 20,525 |   |                                                                                                  |   | (28,106 | )          |  |   | (7,581 | ) |  |      | 8,841  |   |            |   | (47,824 | ) |  |   | (38,983 | )
|Foreign offices                                                           |  |                                                                                                  | 68,923 |   |                                                                                                  |   | 19,415  |            |  |   | 88,338 |   |  |      | 83,406 |   |            |   | 20,375  |   |  |   | 103,781 |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | 89,448 |   |                                                                                                  |   | (8,691  | )          |  |   | 80,757 |   |  |      | 92,247 |   |            |   | (27,449 | ) |  |   | 64,798  |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total interest income:                                                    |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 19,822 |   |                                                                                                  |   | (26,239 | )          |  |   | (6,417 | ) |  |      | (269   | ) |            |   | (49,473 | ) |  |   | (49,742 | )
|Foreign offices                                                           |  |                                                                                                  | 70,708 |   |                                                                                                  |   | 25,672  |            |  |   | 96,380 |   |  |      | 89,946 |   |            |   | 28,373  |   |  |   | 118,319 |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  | ¥                                                                                                | 90,530 |   |                                                                                                  | ¥ | (567    | )          |  | ¥ | 89,963 |   |  | ¥    | 89,677 |   |            | ¥ | (21,100 | ) |  | ¥ | 68,577  |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  



72



---

##### Table of Contents

|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------- | ------ | - | -------------------------------------------------------------------------------------------------- | - | ------- | ---------- |  | - | ------- | - |  | ---- | ------- | - | ---------- | - | ------- | - |  | - | ------- | -
|                                                              |  | Fiscal year ended March 31, 2016 compared to fiscal year ended March 31, 2015Increase / (decrease) |        |   | Fiscal year ended March 31, 2015 compared to fiscal year ended March 31, 2014Increase / (decrease) |  
|                                                              |  | Volume                                                                                             |        |   | Rate                                                                                               |   |         | Net change |  |   | Volume  |   |  | Rate |         |   | Net change |  
|                                                              |  | (In millions)                                                                                      |       
|Interest expense:                                             |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Deposits:                                                     |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  | ¥                                                                                                  | 2,730  |   |                                                                                                    | ¥ | (4,054  | )          |  | ¥ | (1,324  | ) |  | ¥    | 1,415   |   |            | ¥ | (505    | ) |  | ¥ | 910     |  
|Foreign offices                                               |  |                                                                                                    | 9,149  |   |                                                                                                    |   | 28,920  |            |  |   | 38,069  |   |  |      | 23,342  |   |            |   | 925     |   |  |   | 24,267  |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                    | 11,879 |   |                                                                                                    |   | 24,866  |            |  |   | 36,745  |   |  |      | 24,757  |   |            |   | 420     |   |  |   | 25,177  |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Call money and bills sold:                                    |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                    | 111    |   |                                                                                                    |   | (91     | )          |  |   | 20      |   |  |      | 394     |   |            |   | (112    | ) |  |   | 282     |  
|Foreign offices                                               |  |                                                                                                    | (744   | ) |                                                                                                    |   | 2,293   |            |  |   | 1,549   |   |  |      | 698     |   |            |   | (449    | ) |  |   | 249     |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                    | (633   | ) |                                                                                                    |   | 2,202   |            |  |   | 1,569   |   |  |      | 1,092   |   |            |   | (561    | ) |  |   | 531     |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Repurchase agreements and cash collateral on securities lent: |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                    | 1,867  |   |                                                                                                    |   | 624     |            |  |   | 2,491   |   |  |      | 1,559   |   |            |   | (26     | ) |  |   | 1,533   |  
|Foreign offices                                               |  |                                                                                                    | 1,649  |   |                                                                                                    |   | 1,045   |            |  |   | 2,694   |   |  |      | 1,249   |   |            |   | (409    | ) |  |   | 840     |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                    | 3,516  |   |                                                                                                    |   | 1,669   |            |  |   | 5,185   |   |  |      | 2,808   |   |            |   | (435    | ) |  |   | 2,373   |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Borrowings:                                                   |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                    | 6,173  |   |                                                                                                    |   | (4,735  | )          |  |   | 1,438   |   |  |      | 22,744  |   |            |   | (18,662 | ) |  |   | 4,082   |  
|Foreign offices                                               |  |                                                                                                    | 655    |   |                                                                                                    |   | (927    | )          |  |   | (272    | ) |  |      | 73      |   |            |   | (1,384  | ) |  |   | (1,311  | )
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                    | 6,828  |   |                                                                                                    |   | (5,662  | )          |  |   | 1,166   |   |  |      | 22,817  |   |            |   | (20,046 | ) |  |   | 2,771   |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Debt securities in issue:                                     |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                    | 15,158 |   |                                                                                                    |   | (4,833  | )          |  |   | 10,325  |   |  |      | 12,006  |   |            |   | 5,473   |   |  |   | 17,479  |  
|Foreign offices                                               |  |                                                                                                    | 840    |   |                                                                                                    |   | 4,218   |            |  |   | 5,058   |   |  |      | 1,579   |   |            |   | 614     |   |  |   | 2,193   |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                    | 15,998 |   |                                                                                                    |   | (615    | )          |  |   | 15,383  |   |  |      | 13,585  |   |            |   | 6,087   |   |  |   | 19,672  |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Other interest-bearing liabilities:                           |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                    | (28    | ) |                                                                                                    |   | (27     | )          |  |   | (55     | ) |  |      | 52      |   |            |   | (10     | ) |  |   | 42      |  
|Foreign offices                                               |  |                                                                                                    | (21    | ) |                                                                                                    |   | 22      |            |  |   | 1       |   |  |      | 1       |   |            |   | 29      |   |  |   | 30      |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                    | (49    | ) |                                                                                                    |   | (5      | )          |  |   | (54     | ) |  |      | 53      |   |            |   | 19      |   |  |   | 72      |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total interest expense:                                       |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                    | 26,011 |   |                                                                                                    |   | (13,116 | )          |  |   | 12,895  |   |  |      | 38,170  |   |            |   | (13,842 | ) |  |   | 24,328  |  
|Foreign offices                                               |  |                                                                                                    | 11,528 |   |                                                                                                    |   | 35,571  |            |  |   | 47,099  |   |  |      | 26,942  |   |            |   | (674    | ) |  |   | 26,268  |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  | ¥                                                                                                  | 37,539 |   |                                                                                                    | ¥ | 22,455  |            |  | ¥ | 59,994  |   |  | ¥    | 65,112  |   |            | ¥ | (14,516 | ) |  | ¥ | 50,596  |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Net interest income:                                          |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  | ¥                                                                                                  | (6,189 | ) |                                                                                                    | ¥ | (13,123 | )          |  | ¥ | (19,312 | ) |  | ¥    | (38,439 | ) |            | ¥ | (35,631 | ) |  | ¥ | (74,070 | )
|Foreign offices                                               |  |                                                                                                    | 59,180 |   |                                                                                                    |   | (9,899  | )          |  |   | 49,281  |   |  |      | 63,004  |   |            |   | 29,047  |   |  |   | 92,051  |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  | ¥                                                                                                  | 52,991 |   |                                                                                                    | ¥ | (23,022 | )          |  | ¥ | 29,969  |   |  | ¥    | 24,565  |   |            | ¥ | (6,584  | ) |  | ¥ | 17,981  |  
|                                                              |  |                                                                                                    |        |   |                                                                                                    |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  



73



---

##### Table of Contents

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Interest Income

Our interest income increased by ¥89,963 million, or 5%, from ¥1,782,621 million for the fiscal year ended March 31, 2015 to ¥1,872,584 million for the fiscal year ended March 31, 2016,
primarily due to an increase in interest income on loans and advances. Interest income on loans and advances increased by ¥80,757 million, or 5%, from ¥1,622,604 million for the fiscal year ended March 31, 2015 to ¥1,703,361 million for
the fiscal year ended March 31, 2016. Interest income on loans and advances at foreign offices increased by ¥88,338 million, or 17%, from ¥523,485 million for the fiscal year ended March 31, 2015 to ¥611,823 million for the fiscal year
ended March 31, 2016, due to an increase in the average balances of loans to foreign customers, reflecting our allocation of assets primarily to the United States. Interest income on loans and advances at domestic offices decreased by ¥7,581
million, or 1%, from ¥1,099,119 million for the fiscal year ended March 31, 2015 to ¥1,091,538 million for the fiscal year ended March 31, 2016, due to a decrease in the average rate reflecting continuing intense competition in the
commercial banking industry.

Interest Expense

Our interest expense increased by ¥59,994 million, or 16%, from ¥371,107 million for the fiscal year ended March 31, 2015 to ¥431,101 million for the fiscal year ended March 31, 2016,
primarily due to increases in interest expense on deposits and debt securities in issue. Our interest expense on deposits increased by ¥36,745 million, or 22%, from ¥165,567 million for the fiscal year ended March 31, 2015 to
¥202,312 million for the fiscal year ended March 31, 2016, primarily due to an increase at foreign offices. Interest expense on debt securities in issue increased by ¥15,383 million, or 13%, from ¥119,789 million for the fiscal year
ended March 31, 2015 to ¥135,172 million for the fiscal year ended March 31, 2016, primarily due to an increase in average balances.

Net Interest Income

Our net interest income increased by ¥29,969
million, or 2%, from ¥1,411,514 million for the fiscal year ended March 31, 2015 to ¥1,441,483 million for the fiscal year ended March 31, 2016. The net interest income increased primarily due to an increase in interest income on loans and
advances, which was partially offset by increases in the interest expense on deposits and debt securities in issue.

From the
fiscal year ended March 31, 2015 to March 31, 2016, the average rate on loans and advances at domestic offices decreased by 0.04 percentage points from 1.77% to 1.73%, primarily due to the continuing intense competition in the commercial banking
industry. The average rate on loans and advances at foreign offices increased by 0.08 percentage points from 2.25% to 2.33%. As a result, the total for loans and advances was 1.90%, the same level as that of the previous year. On the other hand, the
average rate on deposits at domestic offices slightly decreased by 0.01 percentage points from 0.07% to 0.06%, and the average rate on deposits at foreign offices increased by 0.13 percentage points from 0.55% to 0.68%, resulting in the total for
deposits increasing by 0.03 percentage points from 0.17% to 0.20%.

Fiscal Year Ended March 31, 2015 Compared to Fiscal
Year Ended March 31, 2014

Interest Income

Our interest income increased by ¥68,577 million, or 4%, from ¥1,714,044 million for the fiscal year ended March 31, 2014 to ¥1,782,621 million for the fiscal year ended March 31, 2015. This
increase reflected an increase in interest income on loans and advances, which was partially offset by a decrease in interest income on held-to-maturity investments. Interest income on loans and advances increased by ¥64,798 million, or 4%, from
¥1,557,806 million for the fiscal year ended March 31, 2014 to ¥1,622,604 million for the fiscal year ended March 31, 2015. Interest income on loans and advances at foreign offices increased by ¥103,781 million, or 25%, from ¥419,704
million for the fiscal year ended March 31, 2014 to ¥523,485 million for the fiscal year ended



74



---

##### Table of Contents

March 31, 2015, due to an increase in the average balances of loans to foreign customers, reflecting our allocation of assets primarily to Asian countries and the United States. Interest income
on loans and advances at domestic offices decreased by ¥38,983 million, or 3%, from ¥1,138,102 million for the fiscal year ended March 31, 2014 to ¥1,099,119 million for the fiscal year ended March 31, 2015, due to a decrease in
average rate reflecting increasing competition in the commercial banking industry. Interest income on held-to-maturity investments decreased by ¥9,794 million, or 32%, from ¥30,303 million for the fiscal year ended March 31, 2014 to
¥20,509 million for the fiscal year ended March 31, 2015, due to a decrease in average balances at our domestic offices reflecting a decrease in investments in Japanese government bonds.

Interest Expense

Our interest expense increased by ¥50,596 million, from ¥320,511 million for the fiscal year ended March 31, 2014 to ¥371,107 million for the fiscal year ended March 31, 2015, primarily
due to increases in interest expense on deposits and debt securities in issue. Our interest expense on deposits increased by ¥25,177 million, or 18%, from ¥140,390 million for the fiscal year ended March 31, 2014 to ¥165,567 million
for the fiscal year ended March 31, 2015, primarily due to an increase at foreign offices. Interest expense on debt securities in issue increased by ¥19,672 million, or 20%, from ¥100,117 million for the fiscal year ended March 31, 2014
to ¥119,789 million for the fiscal year ended March 31, 2015, primarily due to an increase in average balances.

Net
Interest Income

Our net interest income increased by ¥17,981 million, or 1%, from ¥1,393,533 million for the
fiscal year ended March 31, 2014 to ¥1,411,514 million for the fiscal year ended March 31, 2015. The net interest income increased primarily due to an increase in interest income on loans and advances, which was partially offset by increases in
the interest expense on deposits and debt securities in issue.

From the fiscal year ended March 31, 2014 to March 31, 2015,
the average rate on loans and advances at domestic offices decreased by 0.08 percentage points from 1.85% to 1.77%, primarily due to the increasing competition in the commercial banking industry. The average rate on loans and advances at foreign
offices increased by 0.10 percentage points from 2.15% to 2.25%, resulting in the total for loans and advances decreasing by 0.02 percentage points from 1.92% to 1.90%. On the other hand, the average rate on deposits at domestic offices was 0.07%,
the same level as that of the previous fiscal year, and the average rate on deposits at foreign offices slightly increased by 0.01 percentage points from 0.54% to 0.55%, resulting in the total for deposits increasing slightly by 0.01 percentage
points from 0.16% to 0.17%.



75



---

##### Table of Contents

Net Fee and Commission Income

The following table sets forth our net fee and commission income for the periods shown.



|                                 |  |                                     |           |  |      |   |           |      |  |   |           | 
|-------------------------------- |  | ----------------------------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                 |  | For the fiscal year ended March 31, |          
|                                 |  | 2016                                |           |  | 2015 |   |           | 2014 | 
|                                 |  | (In millions)                       |          
|Fee and commission income from:  |  |                                     |           |  |      |   |           |      |  |   |           | 
|Loans                            |  | ¥                                   | 121,934   |  |      | ¥ | 103,486   |      |  | ¥ | 109,788   | 
|Credit card business             |  |                                     | 253,136   |  |      |   | 245,133   |      |  |   | 234,060   | 
|Guarantees                       |  |                                     | 55,618    |  |      |   | 51,794    |      |  |   | 45,229    | 
|Securities-related business      |  |                                     | 133,019   |  |      |   | 130,164   |      |  |   | 137,184   | 
|Deposits                         |  |                                     | 14,882    |  |      |   | 14,976    |      |  |   | 18,234    | 
|Remittances and transfers        |  |                                     | 133,110   |  |      |   | 129,465   |      |  |   | 130,864   | 
|Safe deposits                    |  |                                     | 5,511     |  |      |   | 5,748     |      |  |   | 5,832     | 
|Trust fees                       |  |                                     | 3,619     |  |      |   | 2,833     |      |  |   | 2,421     | 
|Investment trusts                |  |                                     | 116,057   |  |      |   | 147,021   |      |  |   | 159,424   | 
|Agency                           |  |                                     | 16,432    |  |      |   | 16,854    |      |  |   | 17,966    | 
|Others                           |  |                                     | 178,362   |  |      |   | 155,292   |      |  |   | 142,167   | 
|                                 |  |                                     |           |  |      |   |           |      |  |   |           | 
|Total fee and commission income  |  |                                     | 1,031,680 |  |      |   | 1,002,766 |      |  |   | 1,003,169 | 
|                                 |  |                                     |           |  |      |   |           |      |  |   |           | 
|Fee and commission expense from: |  |                                     |           |  |      |   |           |      |  |   |           | 
|Remittances and transfers        |  |                                     | 38,358    |  |      |   | 36,669    |      |  |   | 36,413    | 
|Guarantees                       |  |                                     | 3,071     |  |      |   | 3,012     |      |  |   | 1,607     | 
|Others                           |  |                                     | 89,952    |  |      |   | 89,572    |      |  |   | 89,939    | 
|                                 |  |                                     |           |  |      |   |           |      |  |   |           | 
|Total fee and commission expense |  |                                     | 131,381   |  |      |   | 129,253   |      |  |   | 127,959   | 
|                                 |  |                                     |           |  |      |   |           |      |  |   |           | 
|Net fee and commission income    |  | ¥                                   | 900,299   |  |      | ¥ | 873,513   |      |  | ¥ | 875,210   | 
|                                 |  |                                     |           |  |      |   |           |      |  |   |           | 

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Fee and commission income increased by ¥28,914 million, or 3%, from ¥1,002,766 million for the fiscal year ended March 31, 2015 to
¥1,031,680 million for the fiscal year ended March 31, 2016. Primary sources of fee and commission income are fees obtained through our credit card business, remittance and transfer fees, fees obtained through securities-related business, loan
transaction fees, and investment trust sales commissions. The increase in fee and commission income was primarily due to increases in loan transaction fees and fees obtained through our credit card business.

Fee and commission expense was ¥131,381 million for the fiscal year ended March 31, 2016, increased by ¥2,128 million, or 2%,
from ¥129,253 million for the fiscal year ended March 31, 2015.

As a result, net fee and commission income increased by
¥26,786 million, or 3%, from ¥873,513 million for the fiscal year ended March 31, 2015 to ¥900,299 million for the fiscal year ended March 31, 2016.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Fee and commission income slightly decreased by ¥403 million from ¥1,003,169 million for the fiscal year ended March 31, 2014 to ¥1,002,766 million for the fiscal year ended March 31, 2015.
Primary sources of fee and commission income are fees obtained through our credit card business, investment trust sales commissions, fees obtained through securities-related business, remittance and transfer fees, and loan transaction fees.
Investment trust sales commissions and fees and commissions from securities-related business decreased, reflecting the relatively stable Japanese stock market in the first half of the fiscal year ended March 31, 2015, which was partially offset by
an increase in fees obtained through our credit card business.



76



---

##### Table of Contents

Fee and commission expense was ¥129,253 million for the fiscal year ended March 31,
2015, increased by ¥1,294 million, or 1%, from ¥127,959 million for the fiscal year ended March 31, 2014.

As a
result, net fee and commission income slightly decreased by ¥1,697 million from ¥875,210 million for the fiscal year ended March 31, 2014 to ¥873,513 million for the fiscal year ended March 31, 2015.

Net Income from Trading, Financial Assets at Fair Value Through Profit or Loss and Investment Securities

The following table sets forth our net income from trading, financial assets at fair value through profit or loss and investment
securities for the periods shown.



|                                                                            |  |                                     |         |   |      |   |          |      |  |   |         |  
|--------------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | -------- | ---- |  | - | ------- | -
|                                                                            |  | For the fiscal year ended March 31, |        
|                                                                            |  | 2016                                |         |   | 2015 |   |          | 2014 | 
|                                                                            |  | (In millions)                       |        
|Net trading income:                                                         |  |                                     |         |   |      |   |          |      |  |   |         |  
|Interest rate                                                               |  | ¥                                   | 240,763 |   |      | ¥ | 248,372  |      |  | ¥ | 184,859 |  
|Foreign exchange                                                            |  |                                     | 204,349 |   |      |   | (136,708 | )    |  |   | (81,154 | )
|Equity                                                                      |  |                                     | 18,019  |   |      |   | 499      |      |  |   | 10,496  |  
|Credit                                                                      |  |                                     | (2,641  | ) |      |   | 16,970   |      |  |   | 20,983  |  
|Others                                                                      |  |                                     | 2,192   |   |      |   | (1,374   | )    |  |   | 34      |  
|                                                                            |  |                                     |         |   |      |   |          |      |  |   |         |  
|Total net trading income                                                    |  | ¥                                   | 462,682 |   |      | ¥ | 127,759  |      |  | ¥ | 135,218 |  
|                                                                            |  |                                     |         |   |      |   |          |      |  |   |         |  
|Net income from financial assets at fair value through profit or loss:      |  |                                     |         |   |      |   |          |      |  |   |         |  
|Net income from debt instruments                                            |  | ¥                                   | 11,311  |   |      | ¥ | 13,123   |      |  | ¥ | 53,142  |  
|Net income from equity instruments                                          |  |                                     | 949     |   |      |   | 9,555    |      |  |   | 5,444   |  
|                                                                            |  |                                     |         |   |      |   |          |      |  |   |         |  
|Total net income from financial assets at fair value through profit or loss |  | ¥                                   | 12,260  |   |      | ¥ | 22,678   |      |  | ¥ | 58,586  |  
|                                                                            |  |                                     |         |   |      |   |          |      |  |   |         |  
|Net investment income:                                                      |  |                                     |         |   |      |   |          |      |  |   |         |  
|Net gain (loss) from disposal of debt instruments                           |  | ¥                                   | 71,641  |   |      | ¥ | 45,193   |      |  | ¥ | (1,753  | )
|Net gain from disposal of equity instruments                                |  |                                     | 175,494 |   |      |   | 190,570  |      |  |   | 225,185 |  
|Dividend income                                                             |  |                                     | 128,094 |   |      |   | 135,301  |      |  |   | 108,833 |  
|                                                                            |  |                                     |         |   |      |   |          |      |  |   |         |  
|Total net investment income                                                 |  | ¥                                   | 375,229 |   |      | ¥ | 371,064  |      |  | ¥ | 332,265 |  
|                                                                            |  |                                     |         |   |      |   |          |      |  |   |         |  

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Net trading income, which includes income and losses from trading assets and liabilities and derivative financial instruments, increased
by ¥334,923 million from ¥127,759 million for the fiscal year ended March 31, 2015 to ¥462,682 million for the fiscal year ended March 31, 2016. The increase was primarily due to a shift from net trading loss to net trading income from
foreign exchange transactions related to the economic hedges.

We have carried out hedging transactions to hedge
the foreign exchange risk of foreign currency denominated assets and liabilities. Of those hedges, the economic hedges are economically effective for risk management but are not accounted for as hedge accounting under IFRS as they do not meet the
conditions for hedge accounting under IFRS. Hedged items and hedging instruments related to the economic hedges are classified into three types: (1) net investments in foreign subsidiaries and associates hedged by using foreign currency denominated
financial liabilities such as deposits and borrowings, (2) foreign currency denominated equity instruments classified as available-for-sale financial assets hedged by using foreign currency denominated financial liabilities, and (3) foreign currency
denominated financial assets and liabilities, such as loans and deposits hedged by using derivative financial instruments such as currency swaps.



77



---

##### Table of Contents

As those economic hedge transactions lead to accounting mismatches (i.e., when the gains or
losses on the hedged items and hedging instruments do not offset each other either in profit or loss, or in other comprehensive income), large depreciations or appreciations of the yen against other currencies may result in significant fluctuations
to net trading income from foreign exchange transactions.

The above-mentioned shift from net trading loss to net trading
income from foreign exchange transactions related to the economic hedges was primarily due to an appreciation during the fiscal year ended March 31, 2016 versus a depreciation during the previous fiscal year of the yen against the U.S. dollar. The
yen appreciated against the U.S. dollar by 7.53-yen from ¥120.15 at March 31, 2015 to ¥112.62 at March 31, 2016, whereas the yen depreciated by 17.27-yen from ¥102.88 at March 31, 2014 to ¥120.15 at March 31, 2015. For further
information about the yen exchange rates, see Item 3. Key Information3.A. Selected Financial DataExchange Rates.

Net income from financial assets at fair value through profit or loss decreased by ¥10,418 million from ¥22,678 million for the fiscal year ended March 31, 2015 to ¥12,260 million for the
fiscal year ended March 31, 2016, primarily due to a decrease in gains arising from sales and changes in the fair value of equity instruments.

Net investment income increased by ¥4,165 million from ¥371,064 million for the fiscal year ended March 31, 2015 to ¥375,229 million for the fiscal year ended March 31, 2016. This was
primarily due to an increase in net gains from sales of bonds, which was partially offset by a decrease in net gains from sales of equity index-linked investment trusts.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Net trading income, which includes income and losses from trading assets and liabilities and derivative financial instruments, decreased by ¥7,459 million from ¥135,218 million for the fiscal year
ended March 31, 2014 to ¥127,759 million for the fiscal year ended March 31, 2015. The decrease was due to an increase in net trading loss from foreign exchange transactions and a decrease in net trading income from equity related transactions
and other transactions in spite of an increase in net trading income from interest rate related transactions.

The increase in
net trading loss from foreign exchange transactions was primarily due to an increase in the impact of the depreciation of the yen against the U.S. dollar on gains or losses arising from foreign exchange transactions related to the economic hedges as
described in the previous section.

The yen exchange rate against the U.S. dollar was ¥120.15, ¥102.88 and ¥94.01
at March 31, 2015, 2014 and 2013, respectively. This resulted in the 17.27-yen depreciation of the yen against the U.S. dollar during the fiscal year ended March 31, 2015, which was larger than the 8.87-yen depreciation during the previous fiscal
year. Therefore, this contributed to the increase in the impact of the depreciation of the yen against the U.S. dollar mentioned above. For further information about the yen exchange rates, see Item 3. Key Information3.A. Selected
Financial DataExchange Rates.

On the other hand, net trading income from interest rate related transactions
increased primarily due to an increase in income related to fixed income products.

Net income from financial assets at fair
value through profit or loss decreased by ¥35,908 million from ¥58,586 million for the fiscal year ended March 31, 2014 to ¥22,678 million for the fiscal year ended March 31, 2015, primarily due to a decrease in the fair value of debt
instruments.

Net investment income increased by ¥38,799 million from ¥332,265 million for the fiscal year ended
March 31, 2014 to ¥371,064 million for the fiscal year ended March 31, 2015. This was primarily due to an increase in net gains from sales of bonds, which was partially offset by a decrease in net gains from sales of listed stocks.



78



---

##### Table of Contents

Other Income

The following table sets forth our other income for the periods shown.



|                                                                                |  |                                     |         |  |      |   |         |      |  |   |         | 
|------------------------------------------------------------------------------- |  | ----------------------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                                                                                |  | For the fiscal year ended March 31, |        
|                                                                                |  | 2016                                |         |  | 2015 |   |         | 2014 | 
|                                                                                |  | (In millions)                       |        
|Income from operating leases                                                    |  | ¥                                   | 206,561 |  |      | ¥ | 179,632 |      |  | ¥ | 148,211 | 
|Income related to disposal of assets leased                                     |  |                                     | 155,280 |  |      |   | 183,590 |      |  |   | 149,448 | 
|Income related to IT solution services                                          |  |                                     | 33,991  |  |      |   | 35,506  |      |  |   | 41,043  | 
|Gains on disposal of property, plant and equipment, and other intangible assets |  |                                     | 3,714   |  |      |   | 538     |      |  |   | 2,634   | 
|Reversal of impairment losses of investments in associates and joint ventures   |  |                                     | 4,847   |  |      |   |        |      |  |   |        | 
|Gains on step acquisition of subsidiaries                                       |  |                                     | 118     |  |      |   |        |      |  |   | 1,565   | 
|Gains on step acquisition of associates and joint ventures                      |  |                                     | 1,714   |  |      |   | 37,997  |      |  |   |        | 
|Others                                                                          |  |                                     | 90,048  |  |      |   | 88,642  |      |  |   | 86,640  | 
|                                                                                |  |                                     |         |  |      |   |         |      |  |   |         | 
|Total other income                                                              |  | ¥                                   | 496,273 |  |      | ¥ | 525,905 |      |  | ¥ | 429,541 | 
|                                                                                |  |                                     |         |  |      |   |         |      |  |   |         | 

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Other income decreased by ¥29,632 million, or 6%, from ¥525,905 million for the fiscal year ended March 31, 2015 to
¥496,273 million for the fiscal year ended March 31, 2016. The decrease was primarily due to decreases in gains on step acquisition of associates and joint ventures and income related to disposal of assets leased, which was partially offset by
an increase in income from operating leases.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Other income increased by ¥96,364 million, or 22%, from ¥429,541 million for the fiscal year ended March 31,
2014 to ¥525,905 million for the fiscal year ended March 31, 2015. The increase was primarily due to increases in income from operating leases and income related to disposal of assets leased.

Impairment Charges on Financial Assets

The following table sets forth our impairment charges on financial assets for the periods shown.



|                                                         |  |                                     |         |  |      |   |        |      |  |   |         |  
|-------------------------------------------------------- |  | ----------------------------------- | ------- |  | ---- | - | ------ | ---- |  | - | ------- | -
|                                                         |  | For the fiscal year ended March 31, |        
|                                                         |  | 2016                                |         |  | 2015 |   |        | 2014 | 
|                                                         |  | (In millions)                       |        
|Loans and advances                                       |  | ¥                                   | 118,750 |  |      | ¥ | 79,552 |      |  | ¥ | (25,806 | )
|Available-for-sale financial assets                      |  |                                     | 29,606  |  |      |   | 10,586 |      |  |   | 11,531  |  
|                                                         |  |                                     |         |  |      |   |        |      |  |   |         |  
|Total impairment charges (reversals) on financial assets |  | ¥                                   | 148,356 |  |      | ¥ | 90,138 |      |  | ¥ | (14,275 | )
|                                                         |  |                                     |         |  |      |   |        |      |  |   |         |  

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Our impairment charges on financial assets consist of losses relating to loans and advances and available-for-sale financial assets.
Impairment charges on loans and advances are mainly affected by the economic environment and financial conditions of borrowers. On the other hand, impairment charges on available-for-sale financial assets are mainly affected by not only the economic
environment and financial conditions of issuers but the fair value of the financial instruments, such as market prices on stock markets in the case of equity instruments.



79



---

##### Table of Contents

Impairment charges on loans and advances increased by ¥39,198 million from ¥79,552
million for the fiscal year ended March 31, 2015 to ¥118,750 million for the fiscal year ended March 31, 2016, primarily due to an increase in impairment charges on loans and advances to our foreign customers.

For detailed information on provision for loan losses, see Financial ConditionAllowance for Loan Losses.

Impairment charges on available-for-sale financial assets increased by ¥19,020 million from ¥10,586 million for
the fiscal year ended March 31, 2015 to ¥29,606 million for the fiscal year ended March 31, 2016, primarily due to an increase in impairment charges on foreign investment trusts and publicly traded Japanese stocks.

In determining the amount of impairment charges, we consider whether there is objective evidence of impairment as a result of loss
events, such as any significant financial difficulty of the issuer. Our assessments of issuers are focused by industry and geographical area, taking into consideration the adverse impact of any specific issues such as significant changes in the
technological, market, economic or legal environment of the issuer indicating that the cost of our investment may not be recovered. Additionally, in the case of available-for-sale equity instruments, we take into consideration whether there has been
a significant or prolonged decline in the fair value of the equity instruments below their cost.

For the fiscal year ended
March 31, 2016, the types of securities on which the impairment charges were recognized included investments in limited partnerships, investment trusts and listed stocks.

For detailed information on our available-for-sale financial assets, which include a diversified portfolio of domestic equity instruments, see Financial ConditionInvestment
Securities.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

For the fiscal year ended March 31, 2015, impairment charges on loans and advances amounting to ¥79,552 million were recognized,
whereas previously recognized impairment charges on loans and advances amounting to ¥25,806 million were reversed for the fiscal year ended March 31, 2014.

For detailed information on provision for loan losses, see Financial ConditionAllowance for Loan Losses.

Impairment charges on available-for-sale financial assets decreased by ¥945 million from ¥11,531 million for the fiscal year ended March 31, 2014 to ¥10,586 million for the fiscal year ended
March 31, 2015. The types of securities on which the impairment charges were recognized for the fiscal year ended March 31, 2015 included investments in limited partnerships and listed stocks.

For detailed information on our available-for-sale financial assets, which include a diversified portfolio of domestic equity
instruments, see Financial ConditionInvestment Securities.



80



---

##### Table of Contents

General and Administrative Expenses

The following table sets forth our general and administrative expenses for the periods shown.



|                                          |  |                                     |           |  |      |   |           |      |  |   |           | 
|----------------------------------------- |  | ----------------------------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                                          |  | For the fiscal year ended March 31, |          
|                                          |  | 2016                                |           |  | 2015 |   |           | 2014 | 
|                                          |  | (In millions)                       |          
|Personnel expenses                        |  | ¥                                   | 785,547   |  |      | ¥ | 749,480   |      |  | ¥ | 706,376   | 
|Depreciation and amortization             |  |                                     | 157,672   |  |      |   | 146,233   |      |  |   | 137,742   | 
|Rent and lease expenses                   |  |                                     | 117,482   |  |      |   | 116,745   |      |  |   | 113,314   | 
|Building and maintenance expenses         |  |                                     | 13,966    |  |      |   | 10,068    |      |  |   | 8,886     | 
|Supplies expenses                         |  |                                     | 16,628    |  |      |   | 14,865    |      |  |   | 15,482    | 
|Communication expenses                    |  |                                     | 36,634    |  |      |   | 35,126    |      |  |   | 35,017    | 
|Publicity and advertising expenses        |  |                                     | 79,453    |  |      |   | 68,481    |      |  |   | 56,791    | 
|Taxes and dues                            |  |                                     | 76,695    |  |      |   | 67,913    |      |  |   | 57,782    | 
|Outsourcing expenses                      |  |                                     | 91,837    |  |      |   | 91,189    |      |  |   | 88,072    | 
|Premiums for deposit insurance            |  |                                     | 36,175    |  |      |   | 56,789    |      |  |   | 54,532    | 
|Office equipment expenses                 |  |                                     | 47,621    |  |      |   | 47,318    |      |  |   | 40,388    | 
|Others                                    |  |                                     | 246,553   |  |      |   | 217,690   |      |  |   | 208,608   | 
|                                          |  |                                     |           |  |      |   |           |      |  |   |           | 
|Total general and administrative expenses |  | ¥                                   | 1,706,263 |  |      | ¥ | 1,621,897 |      |  | ¥ | 1,522,990 | 
|                                          |  |                                     |           |  |      |   |           |      |  |   |           | 

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

General and administrative expenses increased by ¥84,366 million, or 5%, from ¥1,621,897 million for the fiscal year ended March
31, 2015 to ¥1,706,263 million for the fiscal year ended March 31, 2016, primarily due to increases in expenses related to overseas business development including an increase in our overseas staff and expenses of SMBC Trust Bank, reflecting the
acquisition of the retail banking business of Citibank Japan in November 2015.

Fiscal Year Ended March 31, 2015 Compared
to Fiscal Year Ended March 31, 2014

General and administrative expenses increased by ¥98,907 million, or 6%, from
¥1,522,990 million for the fiscal year ended March 31, 2014 to ¥1,621,897 million for the fiscal year ended March 31, 2015, primarily due to increases in expenses related to overseas business development including an increase in our overseas
staff, expenses to enhance operating income from our securities and credit card businesses, and taxes and dues reflecting the consumption tax increase.

Other Expenses

The following table sets forth our other expenses
for the periods shown.



|                                                                                 |  |                                     |         |  |      |   |         |      |  |   |         | 
|-------------------------------------------------------------------------------- |  | ----------------------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|                                                                                 |  | For the fiscal year ended March 31, |        
|                                                                                 |  | 2016                                |         |  | 2015 |   |         | 2014 | 
|                                                                                 |  | (In millions)                       |        
|Cost of operating leases                                                         |  | ¥                                   | 95,440  |  |      | ¥ | 87,206  |      |  | ¥ | 72,268  | 
|Cost related to disposal of assets leased                                        |  |                                     | 140,083 |  |      |   | 171,707 |      |  |   | 146,196 | 
|Cost related to IT solution services and IT systems                              |  |                                     | 90,563  |  |      |   | 84,300  |      |  |   | 75,173  | 
|Provision for interest repayment                                                 |  |                                     | 141,024 |  |      |   | 64,195  |      |  |   | 49,764  | 
|Losses on disposal of property, plant and equipment, and other intangible assets |  |                                     | 4,302   |  |      |   | 6,703   |      |  |   | 6,763   | 
|Impairment losses of property, plant and equipment                               |  |                                     | 4,237   |  |      |   | 5,108   |      |  |   | 3,157   | 
|Impairment losses of intangible assets                                           |  |                                     | 1,278   |  |      |   | 4       |      |  |   | 193     | 
|Losses on sale of investments in subsidiaries and associates                     |  |                                     | 24      |  |      |   | 2,221   |      |  |   |        | 
|Impairment losses of investments in associates and joint ventures                |  |                                     | 17,306  |  |      |   | 4,631   |      |  |   | 4,686   | 
|Others                                                                           |  |                                     | 44,706  |  |      |   | 79,539  |      |  |   | 70,580  | 
|                                                                                 |  |                                     |         |  |      |   |         |      |  |   |         | 
|Total other expenses                                                             |  | ¥                                   | 538,963 |  |      | ¥ | 505,614 |      |  | ¥ | 428,780 | 
|                                                                                 |  |                                     |         |  |      |   |         |      |  |   |         | 



81



---

##### Table of Contents

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Other expenses increased by ¥33,349 million, or 7%, from ¥505,614 million for the fiscal year ended March 31,
2015 to ¥538,963 million for the fiscal year ended March 31, 2016, primarily due to increases in provision for interest repayment, impairment losses of investments in associates and joint ventures, and cost of operating leases, which was
partially offset by a decrease in cost related to disposal of assets leased.

Fiscal Year Ended March 31, 2015 Compared to
Fiscal Year Ended March 31, 2014

Other expenses increased by ¥76,834 million, or 18%, from ¥428,780 million for
the fiscal year ended March 31, 2014 to ¥505,614 million for the fiscal year ended March 31, 2015, primarily due to increases in cost of operating leases and cost related to disposal of assets leased.

Share of Post-tax Profit of Associates and Joint Ventures

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Share of post-tax profit of associates and joint ventures increased by ¥12,932 million from ¥18,124 million for the fiscal year
ended March 31, 2015 to ¥31,056 million for the fiscal year ended March 31, 2016. This was primarily due to the inclusion of our share of the profit of The Bank of East Asia, Limited, which became our equity-method associate in March 2015.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Share of post-tax profit of associates and joint ventures decreased by ¥1,330 million from ¥19,454 million for the fiscal year
ended March 31, 2014 to ¥18,124 million for the fiscal year ended March 31, 2015. This was primarily due to the exclusion of our share of the profit of Mobit Co., LTD., which had been our equity-method associate but became our subsidiary in
March 2014, and a decrease in our share of the profit from the investment business of associates and joint ventures. The decrease was partially offset by the effect of The Japan Net Bank, which had been our subsidiary but became our equity-method
associate in April 2014.

Income Tax Expense

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Income tax expense decreased by ¥37,069 million from ¥409,947 million for the fiscal year ended March 31, 2015 to
¥372,878 million for the fiscal year ended March 31, 2016. The decrease was primarily due to a decrease in current tax expenses resulting from a decrease in taxable income and changes in Japanese corporation tax rates, which was partially offset
by an increase in deferred tax expense. Regarding the changes in Japanese corporation tax rates, see Note 22 Deferred Income Tax to our consolidated financial statements included elsewhere in this annual report.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Income tax expense decreased by ¥4,129 million from ¥414,076 million for the fiscal year ended March 31, 2014 to ¥409,947
million for the fiscal year ended March 31, 2015, due to a decrease in deferred tax expense. The decrease was primarily due to a decrease in a reversal of deductible temporary differences attributable to loans and advances. The decrease was
partially offset by an increase in deferred tax expense associated with a decrease of net deferred tax assets which resulted from changes in Japanese corporation tax rates.



82



---

##### Table of Contents

Business Segment Analysis

Our business segment information is prepared based on the internal reporting system utilized by our management to assess the performance of our business segments under Japanese GAAP. We have four main
business segments: Commercial Banking, Leasing, Securities and Consumer Finance, with the remaining operations recorded in Others. The Commercial Banking segment covers the Bank, which accounts for the major portion of our total assets and revenue,
other domestic banking subsidiaries, such as SMBC Trust Bank, KUBC and The Minato Bank, as well as foreign banking subsidiaries, such as SMBC Europe, SMBC (China) and Manufacturers Bank. We have SMFL in the Leasing segment, SMBC Nikko Securities and
SMBC Friend Securities in the Securities segment and Sumitomo Mitsui Card, Cedyna and SMBC Consumer Finance in the Consumer Finance segment. Since the Bank has a significant impact on our overall performance, its performance is reported to
management in more detail by each business unit based on customer market.

The Bank conducts its primary banking business
through its four business units: the Wholesale Banking Unit, the Retail Banking Unit, the International Banking Unit and the Treasury Unit. In addition to the four business units, the Investment Banking Unit, the Corporate Advisory Division, the
Private Advisory Division and the Transaction Business Division of the Bank provide a broad range of financial products, services and solutions to address sophisticated and diverse issues and needs of the Banks customers. The Corporate
Advisory Division operates within the Wholesale Banking Unit, and the Private Advisory Division operates within the Wholesale Banking Unit and the Retail Banking Unit, while the Transaction Business Division operates within the Wholesale Banking
Unit, the Retail Banking Unit and the International Banking Unit. The revenues and expenses of these units and divisions are generally allocated to each business unit. Organizational charts of SMFG and the Bank are provided in Item 4.C.
Organizational Structure. Since figures reported to management are prepared under Japanese GAAP, the segment information does not agree to figures in the consolidated financial statements under IFRS. This difference is addressed in Note 4
Segment AnalysisReconciliation of Segmental Results of Operations to Consolidated Income Statement to our consolidated financial statements included elsewhere in this annual report.



83



---

##### Table of Contents

Segmental Results of Operation

For the fiscal year ended March 31, 2016:



|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |          |  
|---------------------------------------------- |  | --------------------- | ------ | - | ------------------ | - | ------ | ------------------------- |  | - | ------------ | - |  | ------ | ----- | - | ---------- | - | ------ | - |  | - | ------- | - |  | - | ------ | - |  | - | -------- | -
|                                               |  | Commercial Banking    |       
|                                               |  | SMBC                  |        |   | Others(2)          |   |        | Total                     | 
|                                               |  | WholesaleBanking Unit |        |   | RetailBanking Unit |   |        | InternationalBanking Unit |  |   | TreasuryUnit |   |  | Others |       |   | SMBC Total |   |        |   |  |   |         |  
|                                               |  | (In billions)         |       
|Gross profit                                   |  | ¥                     | 545.3  |   |                    | ¥ | 372.8  |                           |  | ¥ | 356.0        |   |  | ¥      | 293.6 |   |            | ¥ | (33.4  | ) |  | ¥ | 1,534.3 |   |  | ¥ | 303.0  |   |  | ¥ | 1,837.3  |  
|Net interest income                            |  |                       | 300.1  |   |                    |   | 302.0  |                           |  |   | 225.4        |   |  |        | 168.2 |   |            |   | 27.9   |   |  |   | 1,023.6 |   |  |   | 174.4  |   |  |   | 1,198.0  |  
|Net non-interest income                        |  |                       | 245.2  |   |                    |   | 70.8   |                           |  |   | 130.6        |   |  |        | 125.4 |   |            |   | (61.3  | ) |  |   | 510.7   |   |  |   | 128.6  |   |  |   | 639.3    |  
|General and administrative expenses and others |  |                       | (205.1 | ) |                    |   | (354.1 | )                         |  |   | (116.5       | ) |  |        | (29.1 | ) |            |   | (100.7 | ) |  |   | (805.5  | ) |  |   | (218.9 | ) |  |   | (1,024.4 | )
|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |          |  
|Consolidated net business profit(1)(7)         |  | ¥                     | 340.2  |   |                    | ¥ | 18.7   |                           |  | ¥ | 239.5        |   |  | ¥      | 264.5 |   |            | ¥ | (134.1 | ) |  | ¥ | 728.8   |   |  | ¥ | 84.1   |   |  | ¥ | 812.9    |  
|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |          |  



|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |        |   |  |   |        |   |  |   |       |   |  |   |          |  
|---------------------------------------------- |  | ------------- | ----- | - | ---------- | - | ----- | ---------------------- |  | - | -------------------- | - |  | -------- | ----- | - | ------------------ | - | ------ | --------- |  | - | ---------------------- | - |  | -------- | ------ | - |  | - | ------ | - |  | - | ------ | - |  | - | ----- | - |  | - | -------- | -
|                                               |  | Leasing       |       |   | Securities |   |       | Consumer Finance       |  |   | Others               |   |  | Total    |      
|                                               |  | SMFL(3)       |       |   | Total(4)   |   |       | SMBCNikkoSecurities(5) |  |   | SMBCFriendSecurities |   |  | Total(4) |       |   | SumitomoMitsuiCard |   |        | Cedyna(6) |  |   | SMBCConsumerFinance(3) |   |  | Total(4) |        |   |  |   |        |   | 
|                                               |  | (In billions) |      
|Gross profit                                   |  | ¥             | 142.8 |   |            | ¥ | 162.6 |                        |  | ¥ | 316.3                |   |  | ¥        | 43.8  |   |                    | ¥ | 357.1  |           |  | ¥ | 208.5                  |   |  | ¥        | 165.2  |   |  | ¥ | 233.4  |   |  | ¥ | 611.5  |   |  | ¥ | (64.5 | ) |  | ¥ | 2,904.0  |  
|Net interest income                            |  |               | 17.9  |   |            |   | 22.9  |                        |  |   | 1.6                  |   |  |          | 1.5   |   |                    |   | 4.6    |           |  |   | 13.6                   |   |  |          | 23.7   |   |  |   | 157.0  |   |  |   | 188.9  |   |  |   | 8.6   |   |  |   | 1,423.0  |  
|Net non-interest income                        |  |               | 124.9 |   |            |   | 139.7 |                        |  |   | 314.7                |   |  |          | 42.3  |   |                    |   | 352.5  |           |  |   | 194.9                  |   |  |          | 141.5  |   |  |   | 76.4   |   |  |   | 422.6  |   |  |   | (73.1 | ) |  |   | 1,481.0  |  
|General and administrative expenses and others |  |               | (62.1 | ) |            |   | (67.1 | )                      |  |   | (255.8               | ) |  |          | (38.8 | ) |                    |   | (307.2 | )         |  |   | (157.1                 | ) |  |          | (124.2 | ) |  |   | (104.8 | ) |  |   | (397.2 | ) |  |   | 34.8  |   |  |   | (1,761.1 | )
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |        |   |  |   |        |   |  |   |       |   |  |   |          |  
|Consolidated net business
profit(1)(7)         |  | ¥             | 80.7  |   |            | ¥ | 95.5  |                        |  | ¥ | 60.5                 |   |  | ¥        | 5.0   |   |                    | ¥ | 49.9   |           |  | ¥ | 51.4                   |   |  | ¥        | 41.0   |   |  | ¥ | 128.6  |   |  | ¥ | 214.3  |   |  | ¥ | (29.7 | ) |  | ¥ | 1,142.9  |  
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |        |   |  |   |        |   |  |   |       |   |  |   |          |  

Gross Profit by Business Segment

(For the fiscal year ended March 31, 2016)



LOGO



84



---

##### Table of Contents

For the fiscal year ended March 31, 2015:



|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|---------------------------------------------- |  | --------------------- | ------ | - | ------------------ | - | ------ | ------------------------- |  | - | ------------ | - |  | ------ | ----- | - | ---------- | - | ------ | - |  | - | ------- | - |  | - | ------ | - |  | - | ------- | -
|                                               |  | Commercial Banking    |       
|                                               |  | SMBC                  |        |   | Others(2)          |   |        | Total                     | 
|                                               |  | WholesaleBanking Unit |        |   | RetailBanking Unit |   |        | InternationalBanking Unit |  |   | TreasuryUnit |   |  | Others |       |   | SMBC Total |   |        |   |  |   |         |  
|                                               |  | (In billions)         |       
|Gross profit                                   |  | ¥                     | 555.4  |   |                    | ¥ | 386.8  |                           |  | ¥ | 345.3        |   |  | ¥      | 354.0 |   |            | ¥ | (7.2   | ) |  | ¥ | 1,634.3 |   |  | ¥ | 289.4  |   |  | ¥ | 1,923.7 |  
|Net interest income                            |  |                       | 315.8  |   |                    |   | 313.2  |                           |  |   | 227.8        |   |  |        | 212.4 |   |            |   | 52.2   |   |  |   | 1,121.4 |   |  |   | 171.3  |   |  |   | 1,292.7 |  
|Net non-interest income                        |  |                       | 239.6  |   |                    |   | 73.6   |                           |  |   | 117.5        |   |  |        | 141.6 |   |            |   | (59.4  | ) |  |   | 512.9   |   |  |   | 118.1  |   |  |   | 631.0   |  
|General and administrative expenses and others |  |                       | (206.8 | ) |                    |   | (350.1 | )                         |  |   | (106.6       | ) |  |        | (25.9 | ) |            |   | (101.8 | ) |  |   | (791.2  | ) |  |   | (203.0 | ) |  |   | (994.2  | )
|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|Consolidated net business profit(1)(7)         |  | ¥                     | 348.6  |   |                    | ¥ | 36.7   |                           |  | ¥ | 238.7        |   |  | ¥      | 328.1 |   |            | ¥ | (109.0 | ) |  | ¥ | 843.1   |   |  | ¥ | 86.4   |   |  | ¥ | 929.5   |  
|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  



|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|---------------------------------------------- |  | ------------- | ----- | - | ---------- | - | ----- | ---------------------- |  | - | -------------------- | - |  | -------- | ----- | - | ------------------ | - | ------ | --------- |  | - | ---------------------- | - |  | -------- | ------ | - |  | - | ----- | - |  | - | ------ | - |  | - | ----- | - |  | - | -------- | -
|                                               |  | Leasing       |       |   | Securities |   |       | Consumer Finance       |  |   | Others               |   |  | Total    |      
|                                               |  | SMFL(3)       |       |   | Total(4)   |   |       | SMBCNikkoSecurities(5) |  |   | SMBCFriendSecurities |   |  | Total(4) |       |   | SumitomoMitsuiCard |   |        | Cedyna(6) |  |   | SMBCConsumerFinance(3) |   |  | Total(4) |        |   |  |   |       |   | 
|                                               |  | (In billions) |      
|Gross profit                                   |  | ¥             | 137.0 |   |            | ¥ | 149.3 |                        |  | ¥ | 346.3                |   |  | ¥        | 50.4  |   |                    | ¥ | 393.9  |           |  | ¥ | 196.4                  |   |  | ¥        | 164.2  |   |  | ¥ | 215.5 |   |  | ¥ | 576.9  |   |  | ¥ | (63.4 | ) |  | ¥ | 2,980.4  |  
|Net interest income                            |  |               | 19.3  |   |            |   | 24.4  |                        |  |   | 1.5                  |   |  |          | 1.2   |   |                    |   | 3.8    |           |  |   | 13.6                   |   |  |          | 25.9   |   |  |   | 149.0 |   |  |   | 178.7  |   |  |   | 5.6   |   |  |   | 1,505.2  |  
|Net non-interest income                        |  |               | 117.7 |   |            |   | 124.9 |                        |  |   | 344.8                |   |  |          | 49.2  |   |                    |   | 390.1  |           |  |   | 182.8                  |   |  |          | 138.3  |   |  |   | 66.5  |   |  |   | 398.2  |   |  |   | (69.0 | ) |  |   | 1,475.2  |  
|General and administrative expenses and others |  |               | (56.5 | ) |            |   | (60.8 | )                      |  |   | (248.7               | ) |  |          | (40.0 | ) |                    |   | (301.9 | )         |  |   | (146.0                 | ) |  |          | (121.7 | ) |  |   | (96.1 | ) |  |   | (381.9 | ) |  |   | 68.9  |   |  |   | (1,669.9 | )
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|Consolidated net business
profit(1)(7)         |  | ¥             | 80.5  |   |            | ¥ | 88.5  |                        |  | ¥ | 97.6                 |   |  | ¥        | 10.4  |   |                    | ¥ | 92.0   |           |  | ¥ | 50.4                   |   |  | ¥        | 42.5   |   |  | ¥ | 119.4 |   |  | ¥ | 195.0  |   |  | ¥ | 5.5   |   |  | ¥ | 1,310.5  |  
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  



85



---

##### Table of Contents

For the fiscal year ended March 31, 2014:



|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|---------------------------------------------- | ---- | --------------------- | ------ | --------- | ------------------ | - | ------ | ------------------------- |  | - | ------------ | - |  | ------ | ----- | - | ---------- | - | ------ | - |  | - | ------- | - |  | - | ------ | - |  | - | ------- | -
|                                               |      | Commercial Banking    |       
|                                               | SMBC |                       |        | Others(2) |                    |   | Total  |                          
|                                               |      | WholesaleBanking Unit |        |           | RetailBanking Unit |   |        | InternationalBanking Unit |  |   | TreasuryUnit |   |  | Others |       |   | SMBC Total |   |        |   |  |   |         |  
|                                               |      | (In billions)         |       
|Gross profit                                   |      | ¥                     | 558.5  |           |                    | ¥ | 405.4  |                           |  | ¥ | 296.0        |   |  | ¥      | 325.5 |   |            | ¥ | (27.3  | ) |  | ¥ | 1,558.1 |   |  | ¥ | 249.1  |   |  | ¥ | 1,807.2 |  
|Net interest income                            |      |                       | 323.4  |           |                    |   | 321.3  |                           |  |   | 174.6        |   |  |        | 225.2 |   |            |   | 20.4   |   |  |   | 1,064.9 |   |  |   | 171.1  |   |  |   | 1,236.0 |  
|Net non-interest income                        |      |                       | 235.1  |           |                    |   | 84.1   |                           |  |   | 121.4        |   |  |        | 100.3 |   |            |   | (47.7  | ) |  |   | 493.2   |   |  |   | 78.0   |   |  |   | 571.2   |  
|General and administrative expenses and others |      |                       | (200.7 | )         |                    |   | (336.4 | )                         |  |   | (89.1        | ) |  |        | (22.9 | ) |            |   | (96.6  | ) |  |   | (745.7  | ) |  |   | (195.6 | ) |  |   | (941.3  | )
|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|Consolidated net business profit(1)(7)         |      | ¥                     | 357.8  |           |                    | ¥ | 69.0   |                           |  | ¥ | 206.9        |   |  | ¥      | 302.6 |   |            | ¥ | (123.9 | ) |  | ¥ | 812.4   |   |  | ¥ | 53.5   |   |  | ¥ | 865.9   |  
|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  



|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|---------------------------------------------- |  | ------------- | ----- | - | ---------- | - | ----- | ---------------------- |  | - | -------------------- | - |  | -------- | ----- | - | ------------------ | - | ------ | --------- |  | - | ---------------------- | - |  | -------- | ------ | - |  | - | ----- | - |  | - | ------ | - |  | - | ----- | - |  | - | -------- | -
|                                               |  | Leasing       |       |   | Securities |   |       | Consumer Finance       |  |   | Others               |   |  | Total    |      
|                                               |  | SMFL(3)       |       |   | Total(4)   |   |       | SMBCNikkoSecurities(5) |  |   | SMBCFriendSecurities |   |  | Total(4) |       |   | SumitomoMitsuiCard |   |        | Cedyna(6) |  |   | SMBCConsumerFinance(3) |   |  | Total(4) |        |   |  |   |       |   | 
|                                               |  | (In billions) |      
|Gross profit                                   |  | ¥             | 127.9 |   |            | ¥ | 138.4 |                        |  | ¥ | 339.3                |   |  | ¥        | 58.2  |   |                    | ¥ | 397.8  |           |  | ¥ | 189.9                  |   |  | ¥        | 167.6  |   |  | ¥ | 181.8 |   |  | ¥ | 540.1  |   |  | ¥ | 14.7  |   |  | ¥ | 2,898.2  |  
|Net interest income                            |  |               | 29.1  |   |            |   | 35.2  |                        |  |   | 0.2                  |   |  |          | 1.4   |   |                    |   | 2.7    |           |  |   | 13.9                   |   |  |          | 28.3   |   |  |   | 124.4 |   |  |   | 156.6  |   |  |   | 53.7  |   |  |   | 1,484.2  |  
|Net non-interest income                        |  |               | 98.8  |   |            |   | 103.2 |                        |  |   | 339.1                |   |  |          | 56.8  |   |                    |   | 395.1  |           |  |   | 176.0                  |   |  |          | 139.3  |   |  |   | 57.4  |   |  |   | 383.5  |   |  |   | (39.0 | ) |  |   | 1,414.0  |  
|General and administrative expenses and others |  |               | (52.9 | ) |            |   | (54.4 | )                      |  |   | (235.3               | ) |  |          | (42.5 | ) |                    |   | (292.0 | )         |  |   | (139.6                 | ) |  |          | (123.6 | ) |  |   | (73.0 | ) |  |   | (352.8 | ) |  |   | 80.8  |   |  |   | (1,559.7 | )
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|Consolidated net business profit(1)(7)         |  | ¥             | 75.0  |   |            | ¥ | 84.0  |                        |  | ¥ | 104.0                |   |  | ¥        | 15.7  |   |                    | ¥ | 105.8  |           |  | ¥ | 50.3                   |   |  | ¥        | 44.0   |   |  | ¥ | 108.8 |   |  | ¥ | 187.3  |   |  | ¥ | 95.5  |   |  | ¥ | 1,338.5  |  
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  



|(1) | Consolidated net business profit = Gross profit (*)  General and administrative expenses + share of profit or loss of equity-method associates.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------

(*)Gross profit = (Interest income  Interest expenses) + Trust fees + (Fee and commission income 
Fee and commission expenses) + (Trading income  Trading losses) + (Other operating income  Other operating expenses).

|(2) | Others in Commercial Banking consist of SMFGs banking subsidiaries except SMBC, such as SMBC Trust Bank, KUBC, The Minato Bank, SMBC Europe and SMBC (China).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The figures represent consolidated figures of respective companies.
|--- | -------------------------------------------------------------------

|(4) | Total under each business segment, except Commercial Banking, includes the aggregation of the results from the operating units that were not separately identified.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The figures are the sum of SMBC Nikko Securities (nonconsolidated basis) and its overseas securities subsidiaries.
|--- | ------------------------------------------------------------------------------------------------------------------

|(6) | The figures represent Cedynas consolidated figures excluding insignificant subsidiaries.
|--- | -----------------------------------------------------------------------------------------

|(7) | The Groups total credit cost (reversal) for the fiscal years ended March 31, 2016, 2015 and 2014 were ¥102.8 billion, ¥7.8 billion and ¥(49.1)
billion, respectively, of which ¥10.3 billion, ¥(68.3) billion and ¥(116.5) billion were for Commercial Banking, ¥(1.5) billion, ¥(6.1) billion and ¥(0.9) billion were for Leasing, ¥(0.2) billion, ¥(0.2) billion and
nil were for Securities and ¥91.4 billion, ¥78.8 billion and ¥66.8 billion were for Consumer Finance. Total credit costs include gains on recoveries of written-off claims. The Groups total credit costs (reversal) are not included
in the consolidated net business profit.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



86



---

##### Table of Contents

Commercial Banking

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Our consolidated net business profit from our Commercial Banking segment decreased by ¥117 billion from ¥930 billion for the
fiscal year ended March 31, 2015 to ¥813 billion for the fiscal year ended March 31, 2016. This was due to a decrease in net interest income and an increase in general and administrative expenses.

The Banks Wholesale Banking Unit

Both gross profit and consolidated net business profit from the Banks Wholesale Banking Unit decreased by ¥10 billion and ¥9 billion from ¥555 billion and ¥349 billion for the fiscal
year ended March 31, 2015 to ¥545 billion and ¥340 billion for the fiscal year ended March 31, 2016, respectively. The decrease was primarily due to a decrease in net interest income, which was partially offset by an increase in net
non-interest income. Net interest income decreased primarily due to a decrease in the interest rate spreads for loans as a result of the increasing lending competition in the commercial banking industry in Japan, although loans to domestic companies
increased. Net non-interest income increased primarily due to an increase in fees and commissionsrelated to loan syndication and structured finance.

The Banks Retail Banking Unit

Both gross profit and consolidated net
business profit from the Banks Retail Banking Unit decreased by ¥14 billion and ¥18 billion from ¥387 billion and ¥37 billion for the fiscal year ended March 31, 2015 to ¥373 billion and ¥19 billion for the fiscal
year ended March 31, 2016, respectively. Net interest income decreased primarily due to a decrease in the balance of housing loans, reflecting the intense competition in the housing loan market in Japan.

The Banks International Banking Unit

Both gross profit and consolidated net business profit from the Banks International Banking Unit increased by ¥11 billion and ¥1 billion from ¥345 billion and ¥239 billion for the
fiscal year ended March 31, 2015 to ¥356 billion and ¥240 billion for the fiscal year ended March 31, 2016, respectively. Net non-interest income increased due to an increase in commissions related to loan transactions, reflecting our
allocation of assets primarily to the United States. The increase in gross profit was partially offset by an increase in general and administrative expenses related to overseas business development.

The Banks Treasury Unit

Both gross profit and consolidated net business profit from the Banks Treasury Unit decreased by ¥60 billion and ¥63 billion from ¥354 billion and ¥328 billion for the fiscal
year ended March 31, 2015 to ¥294 billion and ¥265 billion for the fiscal year ended March 31, 2016, respectively. This was primarily due to a decrease in net income from equity related transactions, reflecting the negative trend in the
market.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Our consolidated net business profit from our Commercial Banking segment increased by ¥64 billion from ¥866 billion for the fiscal
year ended March 31, 2014 to ¥930 billion for the fiscal year ended March 31, 2015. This was due to an increase in gross profit, which was partially offset by an increase in general and administrative expenses.

The Banks Wholesale Banking Unit

Both gross profit and consolidated net business profit from the Banks Wholesale Banking Unit decreased by ¥4 billion and ¥9 billion from ¥559 billion and ¥358 billion for the fiscal
year ended March 31, 2014 to



87



---

##### Table of Contents

¥555 billion and ¥349 billion for the fiscal year ended March 31, 2015, respectively. Net interest income decreased primarily due to a decrease in the interest rate spreads for loans
as a result of the increasing lending competition in the commercial banking industry in Japan, although loans to domestic companies increased.

The Banks Retail Banking Unit

Both gross profit and consolidated net
business profit from the Banks Retail Banking Unit decreased by ¥18 billion and ¥32 billion from ¥405 billion and ¥69 billion for the fiscal year ended March 31, 2014 to ¥387 billion and ¥37 billion for the fiscal
year ended March 31, 2015, respectively. Net interest income decreased primarily due to a decrease in the interest rate spreads for and the balance of housing loans, reflecting the increasing competition in the housing loan market in Japan.
Non-interest income decreased primarily due to a decrease in fees and commissions related to investment trusts.

The
Banks International Banking Unit

Both gross profit and consolidated net business profit from the Banks
International Banking Unit increased by ¥49 billion and ¥32 billion from ¥296 billion and ¥207 billion for the fiscal year ended March 31, 2014 to ¥345 billion and ¥239 billion for the fiscal year ended March 31, 2015,
respectively. Net interest income increased due to an increase in the balance of loans to the foreign customers, reflecting our allocation of assets primarily to Asian countries and the United States. The increase in gross profit was partially
offset by an increase in general and administrative expenses related to overseas business development.

The Banks
Treasury Unit

Both gross profit and consolidated net business profit from the Banks Treasury Unit increased by
¥28 billion and ¥25 billion from ¥326 billion and ¥303 billion for the fiscal year ended March 31, 2014 to ¥354 billion and ¥328 billion for the fiscal year ended March 31, 2015, respectively. This was primarily due
to an increase in profits from equity index-linked investment trusts and sales of bonds.

Leasing

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Both gross profit and consolidated net business profit in our Leasing segment increased by ¥14 billion and ¥7 billion from
¥149 billion and ¥89 billion for the fiscal year ended March 31, 2015 to ¥163 billion and ¥96 billion for the fiscal year ended March 31, 2016, respectively. This was primarily due to an increase in net non-interest income,
which was partially offset by an increase in general and administrative expenses of SMFL.

Fiscal Year Ended March 31, 2015
Compared to Fiscal Year Ended March 31, 2014

Both gross profit and consolidated net business profit in our Leasing segment
increased by ¥11 billion and ¥5 billion from ¥138 billion and ¥84 billion for the fiscal year ended March 31, 2014 to ¥149 billion and ¥89 billion for the fiscal year ended March 31, 2015, respectively. Although net
interest income decreased, net non-interest income increased primarily due to an increase in net non-interest income of SMFL.

Securities

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

Both gross profit and consolidated net business profit in our Securities segment decreased by ¥37 billion and ¥42 billion from ¥394 billion and ¥92 billion for the fiscal year ended March
31, 2015 to ¥357 billion and ¥50 billion for the fiscal year ended March 31, 2016, respectively. This was primarily due to a decrease in net non-interest income of SMBC Nikko Securitiesmainly as a result of a decrease in sales
of foreign currency bonds and investment trusts.



88



---

##### Table of Contents

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Both gross profit and consolidated net business profit in our Securities segment decreased by ¥4 billion and ¥14
billion from ¥398 billion and ¥106 billion for the fiscal year ended March 31, 2014 to ¥394 billion and ¥92 billion for the fiscal year ended March 31, 2015, respectively. This was primarily due to an increase in general and
administrative expenses of SMBC Nikko Securities associated with its business development and a decrease in net non-interest income of SMBC Friend Securities.

Consumer Finance

Fiscal Year Ended March 31, 2016 Compared to
Fiscal Year Ended March 31, 2015

Both gross profit and consolidated net business profit in our Consumer Finance segment
increased by ¥35 billion and ¥19 billion from ¥577 billion and ¥195 billion for the fiscal year ended March 31, 2015 to ¥612 billion and ¥214 billion for the fiscal year ended March 31, 2016, respectively. This was
primarily due to an increase in gross profit of Sumitomo Mitsui Card and SMBC Consumer Finance, which was partially offset by an increase in general and administrative expenses attributable to those companies.

Fiscal Year Ended March 31, 2015 Compared to Fiscal Year Ended March 31, 2014

Both gross profit and consolidated net business profit in our Consumer Finance segment increased by ¥37 billion and ¥8
billion from ¥540 billion and ¥187 billion for the fiscal year ended March 31, 2014 to ¥577 billion and ¥195 billion for the fiscal year ended March 31, 2015, respectively. This was primarily due to increases in the gross profit
and consolidated net business profit of SMBC Consumer Finance.

Financial Condition

Assets

Our total assets increased by ¥991,186 million from ¥179,181,466 million at March 31, 2015 to ¥180,172,652 million at March 31, 2016, primarily due to increases in cash and deposits with banks
and loans and advances, which were partially offset by a decrease in investment securities.

Our assets at March 31, 2016 and
2015 were as follows.



|                                                                         |  |               |             |  |      |   |             | 
|------------------------------------------------------------------------ |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                                                                         |  | At March 31,  |            
|                                                                         |  | 2016          |             |  | 2015 |  
|                                                                         |  | (In millions) |            
|Cash and deposits with banks                                             |  | ¥             | 43,144,654  |  |      | ¥ | 40,112,783  | 
|Call loans and bills bought                                              |  |               | 1,291,366   |  |      |   | 1,326,965   | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  |               | 8,236,516   |  |      |   | 7,218,498   | 
|Trading assets                                                           |  |               | 3,615,092   |  |      |   | 3,243,185   | 
|Derivative financial instruments                                         |  |               | 5,290,825   |  |      |   | 6,471,203   | 
|Financial assets at fair value through profit or loss                    |  |               | 1,611,877   |  |      |   | 1,785,684   | 
|Investment securities                                                    |  |               | 19,865,347  |  |      |   | 24,239,656  | 
|Loans and advances                                                       |  |               | 88,862,371  |  |      |   | 86,971,716  | 
|Investments in associates and joint ventures                             |  |               | 702,264     |  |      |   | 619,814     | 
|Property, plant and equipment                                            |  |               | 2,590,951   |  |      |   | 2,496,497   | 
|Intangible assets                                                        |  |               | 1,048,093   |  |      |   | 975,995     | 
|Other assets                                                             |  |               | 3,654,448   |  |      |   | 3,485,123   | 
|Current tax assets                                                       |  |               | 143,534     |  |      |   | 116,847     | 
|Deferred tax assets                                                      |  |               | 115,314     |  |      |   | 117,500     | 
|                                                                         |  |               |             |  |      |   |             | 
|Total assets                                                             |  | ¥             | 180,172,652 |  |      | ¥ | 179,181,466 | 
|                                                                         |  |               |             |  |      |   |             | 



89



---

##### Table of Contents

Loans and Advances

Our main operating activity is the lending business. We make loans and extend other types of credit principally to corporate and
individual customers in Japan and to corporate and sovereign customers in foreign countries.

At March 31, 2016, our loans and
advances were ¥88,862,371 million, or 49% of total assets, representing an increase of ¥1,890,655 million, or 2%, from ¥86,971,716 million at March 31, 2015. The increase in loans and advances was due to increases in both those to
domestic customers and foreign customers. The increase in loans and advances to our domestic customers was primarily due to an increase in the demand for financing, including that of cross-border M&A deals, supported by the improvement in
corporate earnings. The increase in loans and advances to our foreign customers was primarily due to our allocation of assets to the United States.

Domestic

Through the Bank and other banking and non-bank subsidiaries, we
make loans to a broad range of industrial, commercial and individual customers in Japan. The following table shows our outstanding loans and advances to customers whose domiciles are in Japan, classified by industry, before deducting the allowance
for loan losses, and adjusting unearned income, unamortized premiums-net and deferred loan fees-net at the dates indicated.



|                                                      |  |               |            |  |      |   |            | 
|----------------------------------------------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                                                      |  | At March 31,  |           
|                                                      |  | 2016          |            |  | 2015 |  
|                                                      |  | (In millions) |           
|Manufacturing                                         |  | ¥             | 8,298,576  |  |      | ¥ | 8,061,654  | 
|Agriculture, forestry, fisheries and mining           |  |               | 184,314    |  |      |   | 171,855    | 
|Construction                                          |  |               | 1,169,900  |  |      |   | 1,150,616  | 
|Transportation, communications and public enterprises |  |               | 5,258,899  |  |      |   | 5,175,949  | 
|Wholesale and retail                                  |  |               | 5,548,103  |  |      |   | 5,664,385  | 
|Finance and insurance                                 |  |               | 2,684,865  |  |      |   | 2,869,967  | 
|Real estate and goods rental and leasing              |  |               | 9,587,757  |  |      |   | 8,766,724  | 
|Services                                              |  |               | 4,960,352  |  |      |   | 4,776,706  | 
|Municipalities                                        |  |               | 1,374,306  |  |      |   | 1,353,949  | 
|Lease financing                                       |  |               | 2,212,048  |  |      |   | 2,211,773  | 
|Consumer(1)                                           |  |               | 18,935,521 |  |      |   | 18,817,259 | 
|Others                                                |  |               | 2,989,278  |  |      |   | 3,211,240  | 
|                                                      |  |               |            |  |      |   |            | 
|Total domestic                                        |  | ¥             | 63,203,919 |  |      | ¥ | 62,232,077 | 
|                                                      |  |               |            |  |      |   |            | 



|(1) | The balance in Consumer mainly consists of housing loans. The housing loan balances amounted to ¥13,984,755 million and ¥14,087,453 million at March 31, 2016
and 2015, respectively.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



90



---

##### Table of Contents

Foreign

The following table shows the outstanding loans and advances to our customers whose domiciles are not in Japan, classified by industry, before deducting the allowance for loan losses, and adjusting
unearned income, unamortized premiums-net and deferred loan fees-net at the dates indicated.



|                       |  |               |            |  |      |   |            | 
|---------------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                       |  | At March 31,  |           
|                       |  | 2016          |            |  | 2015 |  
|                       |  | (In millions) |           
|Public sector          |  | ¥             | 236,290    |  |      | ¥ | 164,495    | 
|Financial institutions |  |               | 4,067,764  |  |      |   | 3,880,655  | 
|Commerce and industry  |  |               | 20,451,545 |  |      |   | 20,010,729 | 
|Lease financing        |  |               | 357,072    |  |      |   | 308,128    | 
|Others                 |  |               | 1,481,455  |  |      |   | 1,375,624  | 
|                       |  |               |            |  |      |   |            | 
|Total foreign          |  | ¥             | 26,594,126 |  |      | ¥ | 25,739,631 | 
|                       |  |               |            |  |      |   |            | 

Allowance for Loan Losses

We calculate the allowance for loan losses using the latest assignment of obligor grades (our internal credit rating) and supplementary
data such as the borrowers operating cash flows, realizable value of collateral and recent economic conditions.

Fiscal Year Ended March 31, 2016 Compared to Fiscal Year Ended March 31, 2015

For the fiscal year ended March 31, 2016, the allowance for loan losses decreased by ¥70,835 million, or 9%, from ¥793,552 million
at March 31, 2015 to ¥722,717 million at March 31, 2016. The balance of the allowance for loan losses increases when the provision for loan losses is recognized and decreases when charge-offs are recognized through the sales of loans and
write-offs. As we recorded a provision for loan losses of ¥118,750 million and charge-offs of ¥193,649 million for the fiscal year ended March 31, 2016, and charge-offs exceeded the provision for loan losses, the overall allowance for loan
losses decreased.

The provision for loan losses increased by ¥39,198 million from ¥79,552 million for the fiscal year
ended March 31, 2015 to ¥118,750 million for the fiscal year ended March 31, 2016. The increase was primarily due to an increase in the provision for loan losses related to our foreign customers, especially resource-related companies, reflecting
a decrease in natural resource prices.

Charge-offs decreased by ¥56,247 million from the previous fiscal year to
¥193,649 million for the fiscal year ended March 31, 2016. Charge-offs of domestic loans and advances decreased by ¥67,232 million compared to the previous fiscal year to ¥173,431 million for the fiscal year ended March 31, 2016,
primarily due to a decrease in charge-offs related to customers from the real estate and goods rental and leasing, and wholesale and retail industries. Charge-offs of foreign loans and advances increased by ¥10,985 million compared to the
previous fiscal year to ¥20,218 million for the fiscal year ended March 31, 2016.

Fiscal Year Ended March 31, 2015
Compared to Fiscal Year Ended March 31, 2014

For the fiscal year ended March 31, 2015, the allowance for loan losses
decreased by ¥157,113 million, or 17%, from ¥950,665 million at March 31, 2014 to ¥793,552 million at March 31, 2015. As we recorded a provision for loan losses of ¥79,552 million and charge-offs of ¥249,896 million for the
fiscal year ended March 31, 2015, and charge-offs exceeded the provision for loan losses, the overall allowance for loan losses decreased.

Charge-offs decreased by ¥52,785 million from the previous fiscal year to ¥249,896 million for the fiscal year ended March 31, 2015. Charge-offs of domestic loans and advances decreased by
¥42,371 million compared



91



---

##### Table of Contents

to the previous fiscal year to ¥240,663 million for the fiscal year ended March 31, 2015, primarily due to a decrease in charge-offs related to customers from the real estate and goods rental
and leasing, and construction industries. Charge-offs of foreign loans and advances decreased by ¥10,414 million compared to the previous fiscal year to ¥9,233 million for the fiscal year ended March 31, 2015.

The following table shows our allowance for loan losses for each of the periods indicated.



|                                                 |  |                                     |         |   |      |   |         |      |  |   |           |  
|------------------------------------------------ |  | ----------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | --------- | -
|                                                 |  | For the fiscal year ended March 31, |        
|                                                 |  | 2016                                |         |   | 2015 |   |         | 2014 | 
|                                                 |  | (In millions)                       |        
|Allowance for loan losses at beginning of period |  | ¥                                   | 793,552 |   |      | ¥ | 950,665 |      |  | ¥ | 1,262,478 |  
|Provision (credit) for loan losses               |  |                                     | 118,750 |   |      |   | 79,552  |      |  |   | (25,806   | )
|Charge-offs:                                     |  |                                     |         |   |      |   |         |      |  |   |           |  
|Domestic                                         |  |                                     | 173,431 |   |      |   | 240,663 |      |  |   | 283,034   |  
|Foreign                                          |  |                                     | 20,218  |   |      |   | 9,233   |      |  |   | 19,647    |  
|                                                 |  |                                     |         |   |      |   |         |      |  |   |           |  
|Total                                            |  |                                     | 193,649 |   |      |   | 249,896 |      |  |   | 302,681   |  
|                                                 |  |                                     |         |   |      |   |         |      |  |   |           |  
|Recoveries:                                      |  |                                     |         |   |      |   |         |      |  |   |           |  
|Domestic                                         |  |                                     | 9,477   |   |      |   | 9,517   |      |  |   | 9,293     |  
|Foreign                                          |  |                                     | 871     |   |      |   | 380     |      |  |   | 362       |  
|                                                 |  |                                     |         |   |      |   |         |      |  |   |           |  
|Total                                            |  |                                     | 10,348  |   |      |   | 9,897   |      |  |   | 9,655     |  
|                                                 |  |                                     |         |   |      |   |         |      |  |   |           |  
|Net charge-offs                                  |  |                                     | 183,301 |   |      |   | 239,999 |      |  |   | 293,026   |  
|Others(1)                                        |  |                                     | (6,284  | ) |      |   | 3,334   |      |  |   | 7,019     |  
|                                                 |  |                                     |         |   |      |   |         |      |  |   |           |  
|Allowance for loan losses at end of period       |  | ¥                                   | 722,717 |   |      | ¥ | 793,552 |      |  | ¥ | 950,665   |  
|                                                 |  |                                     |         |   |      |   |         |      |  |   |           |  



|(1) | Others mainly include foreign exchange translations for the fiscal years ended March 31, 2016, 2015 and 2014.
|--- | -------------------------------------------------------------------------------------------------------------

Impaired Loans and Advances

A portion of the total domestic and foreign loans and advances consists of impaired loans and advances, which are comprised of potentially bankrupt, effectively bankrupt and bankrupt (loans and
advances), past due three months or more (loans), restructured (loans) and other impaired (loans and advances). The loans and advances for which management has serious doubts about the ability of the
borrowers to comply in the near future with the repayment terms are wholly included in impaired loans and advances.

Potentially bankrupt, effectively bankrupt and bankrupt (loans and advances) comprise loans and advances to borrowers that
are perceived to have a high risk of falling into bankruptcy, may not have been legally or formally declared bankrupt but are essentially bankrupt, or have been legally or formally declared bankrupt.

Loans classified as past due three months or more (loans) represent those loans that are three months or more past due as to
principal or interest, which are not included in potentially bankrupt, effectively bankrupt and bankrupt (loans and advances).

The category restructured (loans) comprises loans not included above for which the terms of the loans have been modified to grant concessions because of problems with the borrower.

Other impaired (loans and advances) represent impaired loans and advances, which are not included in potentially
bankrupt, effectively bankrupt and bankrupt (loans and advances), past due three months or more (loans), or restructured (loans), but for which information about credit problems cause management to classify them as
impaired loans and advances.



92



---

##### Table of Contents

The following table shows the distribution of impaired loans and advances by
potentially bankrupt, effectively bankrupt and bankrupt (loans and advances), past due three months or more (loans), restructured (loans)and other impaired (loans and advances) at March 31, 2016 and
2015 by domicile and type of industry of the borrowers. At March 31, 2016, gross impaired loans and advances were ¥1,352,587 million, a decrease of ¥245,515 million from ¥1,598,102 million at March 31, 2015. The ratio of gross impaired
loans and advances to the outstanding loans and advances before deducting the allowance for loan losses, and adjusting unearned income, unamortized premiums-net and deferred loan fees-net was 1.5% at March 31, 2016, a decrease of 0.3 percentage
points from 1.8% at March 31, 2015.



|                                                                              |  |               |           |   |      |   |           |  
|----------------------------------------------------------------------------- |  | ------------- | --------- | - | ---- | - | --------- | -
|                                                                              |  | At March 31,  |          
|                                                                              |  | 2016          |           |   | 2015 |  
|                                                                              |  | (In millions) |          
|Potentially bankrupt, effectively bankrupt and bankrupt (loans and advances): |  |               |           |   |      |   |           |  
|Domestic:                                                                     |  |               |           |   |      |   |           |  
|Manufacturing                                                                 |  | ¥             | 119,318   |   |      | ¥ | 149,686   |  
|Agriculture, forestry, fisheries and mining                                   |  |               | 2,843     |   |      |   | 7,146     |  
|Construction                                                                  |  |               | 25,932    |   |      |   | 36,903    |  
|Transportation, communications and public enterprises                         |  |               | 38,008    |   |      |   | 52,168    |  
|Wholesale and retail                                                          |  |               | 125,241   |   |      |   | 156,753   |  
|Finance and insurance                                                         |  |               | 8,302     |   |      |   | 9,551     |  
|Real estate and goods rental and leasing                                      |  |               | 133,324   |   |      |   | 198,714   |  
|Services                                                                      |  |               | 126,781   |   |      |   | 161,384   |  
|Lease financing                                                               |  |               | 16,122    |   |      |   | 18,522    |  
|Consumer                                                                      |  |               | 213,931   |   |      |   | 223,464   |  
|Others                                                                        |  |               | 32,503    |   |      |   | 43,443    |  
|                                                                              |  |               |           |   |      |   |           |  
|Total domestic                                                                |  |               | 842,305   |   |      |   | 1,057,734 |  
|                                                                              |  |               |           |   |      |   |           |  
|Foreign:                                                                      |  |               |           |   |      |   |           |  
|Public sector                                                                 |  |               | 31        |   |      |   | 14        |  
|Financial institutions                                                        |  |               | 28        |   |      |   | 19,720    |  
|Commerce and industry                                                         |  |               | 148,475   |   |      |   | 146,821   |  
|Lease financing                                                               |  |               | 11,104    |   |      |   | 8,969     |  
|Others                                                                        |  |               | 5,682     |   |      |   | 6,152     |  
|                                                                              |  |               |           |   |      |   |           |  
|Total foreign                                                                 |  |               | 165,320   |   |      |   | 181,676   |  
|                                                                              |  |               |           |   |      |   |           |  
|Total                                                                         |  |               | 1,007,625 |   |      |   | 1,239,410 |  
|                                                                              |  |               |           |   |      |   |           |  
|Past due three months or more (loans):                                        |  |               |           |   |      |   |           |  
|Domestic                                                                      |  |               | 21,861    |   |      |   | 23,586    |  
|Foreign                                                                       |  |               | 7,962     |   |      |   | 398       |  
|                                                                              |  |               |           |   |      |   |           |  
|Total                                                                         |  |               | 29,823    |   |      |   | 23,984    |  
|                                                                              |  |               |           |   |      |   |           |  
|Restructured (loans):                                                         |  |               |           |   |      |   |           |  
|Domestic                                                                      |  |               | 164,035   |   |      |   | 144,628   |  
|Foreign                                                                       |  |               | 22,401    |   |      |   | 43,330    |  
|                                                                              |  |               |           |   |      |   |           |  
|Total                                                                         |  |               | 186,436   |   |      |   | 187,958   |  
|                                                                              |  |               |           |   |      |   |           |  
|Other impaired (loans and advances):                                          |  |               |           |   |      |   |           |  
|Domestic                                                                      |  |               | 126,211   |   |      |   | 140,858   |  
|Foreign                                                                       |  |               | 2,492     |   |      |   | 5,892     |  
|                                                                              |  |               |           |   |      |   |           |  
|Total                                                                         |  |               | 128,703   |   |      |   | 146,750   |  
|                                                                              |  |               |           |   |      |   |           |  
|Gross impaired loans and advances                                             |  |               | 1,352,587 |   |      |   | 1,598,102 |  
|                                                                              |  |               |           |   |      |   |           |  
|Less: Allowance for loan losses for impaired loans and advances               |  |               | (613,510  | ) |      |   | (699,207  | )
|                                                                              |  |               |           |   |      |   |           |  
|Net impaired loans and advances                                               |  | ¥             | 739,077   |   |      | ¥ | 898,895   |  
|                                                                              |  |               |           |   |      |   |           |  



93



---

##### Table of Contents

In addition to the discussion in this section, see Note 45 Financial Risk
ManagementCredit Risk to our consolidated financial statements included elsewhere in this annual report.

Investment Securities

Our investment securities, including available-for-sale financial assets and held-to-maturity investments, totaled ¥19,865,347 million at March 31, 2016, a decrease of ¥4,374,309 million, or 18%,
from ¥24,239,656 million at March 31, 2015. The decrease in our investment securities was primarily due to a decrease in our holdings of available-for-sale domestic bonds.

Our bond portfolio is principally held for asset and liability management purposes. Our bond portfolio mostly consisted of Japanese government bonds, U.S. Treasury securities and bonds issued by other
governments and official institutions.

Our held-to-maturity investments amounted to ¥2,267,542 million at March 31, 2016,
a decrease of ¥1,129,353 million, or 33%, from ¥3,396,895 million at March 31, 2015, primarily due to redemptions at maturity of Japanese government bonds, which are the principal components of our held-to-maturity investments portfolio.

Domestic available-for-sale financial assets included ¥6,867,292 million of domestic debt instruments at March 31, 2016,
a decrease of ¥2,806,408 million, or 29%, from ¥9,673,700 million at March 31, 2015. The decrease was primarily due to a decrease in our holdings of Japanese government bonds. Moreover, we manage the average duration of our Japanese
government bonds to be short, and Japanese government bonds with a maturity of less than a year and those with a maturity of less than five years accounted for 24% and 96%, respectively, of our total Japanese government bonds at March 31, 2016. As
for our foreign available-for-sale financial assets, we had ¥5,482,618 million of foreign debt instruments, which was an increase of ¥742,870 million, or 16%, from ¥4,739,748 million at March 31, 2015. Most of our foreign debt
instruments, including mortgage-backed securities, are issued or guaranteed by foreign governments, government agencies or official institutions. The increase was primarily due to an increase in our holdings of mortgage-backed securities of
Government National Mortgage Association. Of our foreign debt instruments, 55% had a maturity of less than five years.

We had
¥4,668,299 million of domestic equity instruments and ¥579,596 million of foreign equity instruments at March 31, 2016. Our domestic equity instruments, which consisted principally of publicly traded Japanese stocks and included common and
preferred stocks issued by our customers, decreased by ¥1,008,072 million, or 18%, from ¥5,676,371 million at March 31, 2015. Net unrealized gains on our domestic equity instruments decreased by ¥682,838 million, or 23%, from
¥3,031,726 million at March 31, 2015 to ¥2,348,888 million at March 31, 2016. The decrease was primarily due to a decline in the market prices of these stocks in a market environment where, as described in Item 5. Operating and
Financial Review and ProspectsOverviewOperating Environment, the Nikkei Stock Average dropped from ¥19,206.99 at March 31, 2015 to ¥16,758.67 at March 31, 2016. Net unrealized gains on our foreign equity instruments
decreased by ¥113,138 million, or 36%, from ¥317,718 million at March 31, 2015 to ¥204,580 million at March 31, 2016.

We recognize the risks associated with our equity portfolio, owing to its volatility, and have been actively looking to minimize the negative effect of holding a large equity portfolio through economic
hedging and derivative transactions.

We have no transactions pursuant to repurchase agreements, securities lending
transactions or other transactions involving the transfer of financial assets with an obligation to repurchase such transferred assets that are treated as sales for accounting purposes.



94



---

##### Table of Contents

The following tables show the amortized cost, gross unrealized gains and losses and fair
value of our investment securities, which are classified as held-to-maturity investments and available-for-sale financial assets at March 31, 2016, 2015 and 2014.



|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|----------------------------------------------------------- |  | ----------------- | ---------- |  | --------------------- | - | --------- | ---------------------- |  | - | ---------- |  |  | - | ---------- | 
|                                                            |  | At March 31, 2016 |           
|                                                            |  | Amortizedcost     |            |  | Gross unrealizedgains |   |           | Gross unrealizedlosses |  |   | Fair value | 
|                                                            |  | (In millions)     |           
|Held-to-maturity investments:                               |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Domestic:                                                   |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Japanese government bonds                                   |  | ¥                 | 2,241,491  |  |                       | ¥ | 16,574    |                        |  | ¥ |           |  |  | ¥ | 2,258,065  | 
|Japanese municipal bonds                                    |  |                   | 20,849     |  |                       |   | 26        |                        |  |   | 3          |  |  |   | 20,872     | 
|Japanese corporate bonds                                    |  |                   | 5,202      |  |                       |   | 28        |                        |  |   |           |  |  |   | 5,230      | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic                                              |  |                   | 2,267,542  |  |                       |   | 16,628    |                        |  |   | 3          |  |  |   | 2,284,167  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Foreign                                                     |  |                   |           |  |                       |   |          |                        |  |   |           |  |  |   |           | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total                                                       |  | ¥                 | 2,267,542  |  |                       | ¥ | 16,628    |                        |  | ¥ | 3          |  |  | ¥ | 2,284,167  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Available-for-sale financial assets:                        |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Domestic:                                                   |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Japanese government bonds                                   |  | ¥                 | 6,481,951  |  |                       | ¥ | 47,906    |                        |  | ¥ | 1,282      |  |  | ¥ | 6,528,575  | 
|Japanese municipal bonds                                    |  |                   | 31,081     |  |                       |   | 157       |                        |  |   | 17         |  |  |   | 31,221     | 
|Japanese corporate bonds                                    |  |                   | 303,894    |  |                       |   | 3,687     |                        |  |   | 85         |  |  |   | 307,496    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic debt instruments                             |  |                   | 6,816,926  |  |                       |   | 51,750    |                        |  |   | 1,384      |  |  |   | 6,867,292  | 
|Equity instruments                                          |  |                   | 2,319,411  |  |                       |   | 2,385,454 |                        |  |   | 36,566     |  |  |   | 4,668,299  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic                                              |  |                   | 9,136,337  |  |                       |   | 2,437,204 |                        |  |   | 37,950     |  |  |   | 11,535,591 | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Foreign:                                                    |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|U.S. Treasury and other U.S. government agency bonds        |  |                   | 2,243,096  |  |                       |   | 5,237     |                        |  |   | 2,203      |  |  |   | 2,246,130  | 
|Bonds issued by other governments and official institutions |  |                   | 2,130,938  |  |                       |   | 10,107    |                        |  |   | 2,052      |  |  |   | 2,138,993  | 
|Mortgage-backed securities                                  |  |                   | 978,315    |  |                       |   | 6,692     |                        |  |   | 486        |  |  |   | 984,521    | 
|Other debt instruments                                      |  |                   | 112,312    |  |                       |   | 713       |                        |  |   | 51         |  |  |   | 112,974    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total foreign debt instruments                              |  |                   | 5,464,661  |  |                       |   | 22,749    |                        |  |   | 4,792      |  |  |   | 5,482,618  | 
|Equity instruments                                          |  |                   | 375,016    |  |                       |   | 227,025   |                        |  |   | 22,445     |  |  |   | 579,596    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total foreign                                               |  |                   | 5,839,677  |  |                       |   | 249,774   |                        |  |   | 27,237     |  |  |   | 6,062,214  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total                                                       |  | ¥                 | 14,976,014 |  |                       | ¥ | 2,686,978 |                        |  | ¥ | 65,187     |  |  | ¥ | 17,597,805 | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 



95



---

##### Table of Contents

|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|----------------------------------------------------------- |  | ----------------- | ---------- |  | --------------------- | - | --------- | ---------------------- |  | - | ---------- |  |  | - | ---------- | 
|                                                            |  | At March 31, 2015 |           
|                                                            |  | Amortizedcost     |            |  | Gross unrealizedgains |   |           | Gross unrealizedlosses |  |   | Fair value | 
|                                                            |  | (In millions)     |           
|Held-to-maturity investments:                               |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Domestic:                                                   |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Japanese government bonds                                   |  | ¥                 | 3,282,787  |  |                       | ¥ | 20,441    |                        |  | ¥ |           |  |  | ¥ | 3,303,228  | 
|Japanese municipal bonds                                    |  |                   | 67,843     |  |                       |   | 222       |                        |  |   |           |  |  |   | 68,065     | 
|Japanese corporate bonds                                    |  |                   | 46,265     |  |                       |   | 174       |                        |  |   |           |  |  |   | 46,439     | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic                                              |  |                   | 3,396,895  |  |                       |   | 20,837    |                        |  |   |           |  |  |   | 3,417,732  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Foreign                                                     |  |                   |           |  |                       |   |          |                        |  |   |           |  |  |   |           | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total                                                       |  | ¥                 | 3,396,895  |  |                       | ¥ | 20,837    |                        |  | ¥ |           |  |  | ¥ | 3,417,732  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Available-for-sale financial assets:                        |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Domestic:                                                   |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Japanese government bonds                                   |  | ¥                 | 9,376,173  |  |                       | ¥ | 17,318    |                        |  | ¥ | 3,532      |  |  | ¥ | 9,389,959  | 
|Japanese municipal bonds                                    |  |                   | 51,882     |  |                       |   | 281       |                        |  |   | 13         |  |  |   | 52,150     | 
|Japanese corporate bonds                                    |  |                   | 229,726    |  |                       |   | 1,928     |                        |  |   | 63         |  |  |   | 231,591    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic debt instruments                             |  |                   | 9,657,781  |  |                       |   | 19,527    |                        |  |   | 3,608      |  |  |   | 9,673,700  | 
|Equity instruments                                          |  |                   | 2,644,645  |  |                       |   | 3,033,813 |                        |  |   | 2,087      |  |  |   | 5,676,371  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic                                              |  |                   | 12,302,426 |  |                       |   | 3,053,340 |                        |  |   | 5,695      |  |  |   | 15,350,071 | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Foreign:                                                    |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|U.S. Treasury and other U.S. government agency bonds        |  |                   | 2,064,938  |  |                       |   | 2,497     |                        |  |   | 5,392      |  |  |   | 2,062,043  | 
|Bonds issued by other governments and official institutions |  |                   | 2,178,318  |  |                       |   | 27,976    |                        |  |   | 632        |  |  |   | 2,205,662  | 
|Mortgage-backed securities                                  |  |                   | 257,277    |  |                       |   | 231       |                        |  |   | 408        |  |  |   | 257,100    | 
|Other debt instruments                                      |  |                   | 213,815    |  |                       |   | 1,621     |                        |  |   | 493        |  |  |   | 214,943    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total foreign debt instruments                              |  |                   | 4,714,348  |  |                       |   | 32,325    |                        |  |   | 6,925      |  |  |   | 4,739,748  | 
|Equity instruments                                          |  |                   | 435,224    |  |                       |   | 317,801   |                        |  |   | 83         |  |  |   | 752,942    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total foreign                                               |  |                   | 5,149,572  |  |                       |   | 350,126   |                        |  |   | 7,008      |  |  |   | 5,492,690  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total                                                       |  | ¥                 | 17,451,998 |  |                       | ¥ | 3,403,466 |                        |  | ¥ | 12,703     |  |  | ¥ | 20,842,761 | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 



96



---

##### Table of Contents

|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|----------------------------------------------------------- |  | ----------------- | ---------- |  | --------------------- | - | --------- | ---------------------- |  | - | ---------- |  |  | - | ---------- | 
|                                                            |  | At March 31, 2014 |           
|                                                            |  | Amortizedcost     |            |  | Gross unrealizedgains |   |           | Gross unrealizedlosses |  |   | Fair value | 
|                                                            |  | (In millions)     |           
|Held-to-maturity investments:                               |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Domestic:                                                   |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Japanese government bonds                                   |  | ¥                 | 4,330,877  |  |                       | ¥ | 32,095    |                        |  | ¥ | 125        |  |  | ¥ | 4,362,847  | 
|Japanese municipal bonds                                    |  |                   | 102,580    |  |                       |   | 847       |                        |  |   | 2          |  |  |   | 103,425    | 
|Japanese corporate bonds                                    |  |                   | 94,797     |  |                       |   | 1,306     |                        |  |   | 27         |  |  |   | 96,076     | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic                                              |  |                   | 4,528,254  |  |                       |   | 34,248    |                        |  |   | 154        |  |  |   | 4,562,348  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Foreign                                                     |  |                   |           |  |                       |   |          |                        |  |   |           |  |  |   |           | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total                                                       |  | ¥                 | 4,528,254  |  |                       | ¥ | 34,248    |                        |  | ¥ | 154        |  |  | ¥ | 4,562,348  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Available-for-sale financial assets:                        |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Domestic:                                                   |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Japanese government bonds                                   |  | ¥                 | 8,242,654  |  |                       | ¥ | 19,212    |                        |  | ¥ | 57         |  |  | ¥ | 8,261,809  | 
|Japanese municipal bonds                                    |  |                   | 125,095    |  |                       |   | 736       |                        |  |   | 27         |  |  |   | 125,804    | 
|Japanese corporate bonds                                    |  |                   | 512,904    |  |                       |   | 2,519     |                        |  |   | 143        |  |  |   | 515,280    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic debt instruments                             |  |                   | 8,880,653  |  |                       |   | 22,467    |                        |  |   | 227        |  |  |   | 8,902,893  | 
|Equity instruments                                          |  |                   | 2,444,269  |  |                       |   | 2,032,382 |                        |  |   | 6,404      |  |  |   | 4,470,247  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total domestic                                              |  |                   | 11,324,922 |  |                       |   | 2,054,849 |                        |  |   | 6,631      |  |  |   | 13,373,140 | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Foreign:                                                    |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|U.S. Treasury and other U.S. government agency bonds        |  |                   | 1,891,918  |  |                       |   | 194       |                        |  |   | 20,355     |  |  |   | 1,871,757  | 
|Bonds issued by other governments and official institutions |  |                   | 1,215,260  |  |                       |   | 1,478     |                        |  |   | 541        |  |  |   | 1,216,197  | 
|Mortgage-backed securities                                  |  |                   | 256,389    |  |                       |   | 108       |                        |  |   | 14,848     |  |  |   | 241,649    | 
|Other debt instruments                                      |  |                   | 239,757    |  |                       |   | 2,527     |                        |  |   | 484        |  |  |   | 241,800    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total foreign debt instruments                              |  |                   | 3,603,324  |  |                       |   | 4,307     |                        |  |   | 36,228     |  |  |   | 3,571,403  | 
|Equity instruments                                          |  |                   | 364,387    |  |                       |   | 216,625   |                        |  |   | 811        |  |  |   | 580,201    | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total foreign                                               |  |                   | 3,967,711  |  |                       |   | 220,932   |                        |  |   | 37,039     |  |  |   | 4,151,604  | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 
|Total                                                       |  | ¥                 | 15,292,633 |  |                       | ¥ | 2,275,781 |                        |  | ¥ | 43,670     |  |  | ¥ | 17,524,744 | 
|                                                            |  |                   |            |  |                       |   |           |                        |  |   |            |  |  |   |            | 



97



---

##### Table of Contents

The following tables show the fair value and gross unrealized losses of our investment
securities, aggregated by the length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2016, 2015 and 2014. None of the available-for-sale equity instruments included in the tables have been in a
continuous unrealized loss position for twelve months or more, since a significant or prolonged decline in the fair value of an equity instrument below its cost is considered to be an objective evidence of impairment and in such case the unrealized
losses are reclassified from equity to profit or loss.



|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|--------------------------------------------------------- |  | ----------------------- | --------- |  | --------------------- | - | ------ | ---------- |  | - | --------------------- |  |  | ---------- | --- |  | --------------------- | - | --------- |  |  | - | ------ | 
|                                                          |  | At March 31, 2016       |          
|                                                          |  | Less than twelve months |           |  | Twelve months or more |   |        | Total      | 
|                                                          |  | Fair value              |           |  | Grossunrealizedlosses |   |        | Fair value |  |   | Grossunrealizedlosses |  |  | Fair value |     |  | Grossunrealizedlosses |  
|                                                          |  | (In millions)           |          
|Held-to-maturity investments:                             |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Domestic:                                                 |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Japanese government bonds                                 |  | ¥                       |          |  |                       | ¥ |       |            |  | ¥ |                      |  |  | ¥          |    |  |                       | ¥ |          |  |  | ¥ |       | 
|Japanese municipal bonds                                  |  |                         | 4,386     |  |                       |   | 3      |            |  |   |                      |  |  |            |    |  |                       |   | 4,386     |  |  |   | 3      | 
|Japanese corporate bonds                                  |  |                         |          |  |                       |   |       |            |  |   |                      |  |  |            |    |  |                       |   |          |  |  |   |       | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Total domestic                                            |  |                         | 4,386     |  |                       |   | 3      |            |  |   |                      |  |  |            |    |  |                       |   | 4,386     |  |  |   | 3      | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Foreign                                                   |  |                         |          |  |                       |   |       |            |  |   |                      |  |  |            |    |  |                       |   |          |  |  |   |       | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Total                                                     |  | ¥                       | 4,386     |  |                       | ¥ | 3      |            |  | ¥ |                      |  |  | ¥          |    |  |                       | ¥ | 4,386     |  |  | ¥ | 3      | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Available-for-sale financial assets:                      |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Domestic:                                                 |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Japanese government bonds                                 |  | ¥                       | 675,693   |  |                       | ¥ | 1,282  |            |  | ¥ |                      |  |  | ¥          |    |  |                       | ¥ | 675,693   |  |  | ¥ | 1,282  | 
|Japanese municipal bonds                                  |  |                         | 3,893     |  |                       |   | 16     |            |  |   | 775                   |  |  |            | 1   |  |                       |   | 4,668     |  |  |   | 17     | 
|Japanese corporate bonds                                  |  |                         | 42,692    |  |                       |   | 82     |            |  |   | 860                   |  |  |            | 3   |  |                       |   | 43,552    |  |  |   | 85     | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Total domestic debt instruments                           |  |                         | 722,278   |  |                       |   | 1,380  |            |  |   | 1,635                 |  |  |            | 4   |  |                       |   | 723,913   |  |  |   | 1,384  | 
|Equity instruments                                        |  |                         | 425,494   |  |                       |   | 36,566 |            |  |   |                      |  |  |            |    |  |                       |   | 425,494   |  |  |   | 36,566 | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Total domestic                                            |  |                         | 1,147,772 |  |                       |   | 37,946 |            |  |   | 1,635                 |  |  |            | 4   |  |                       |   | 1,149,407 |  |  |   | 37,950 | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Foreign:                                                  |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|U.S. Treasury and other U.S. government agency bonds      |  |                         | 857,102   |  |                       |   | 2,164  |            |  |   | 22,474                |  |  |            | 39  |  |                       |   | 879,576   |  |  |   | 2,203  | 
|Bonds issued by othergovernments and officialinstitutions |  |                         | 938,377   |  |                       |   | 2,012  |            |  |   | 32,063                |  |  |            | 40  |  |                       |   | 970,440   |  |  |   | 2,052  | 
|Mortgage-backed securities                                |  |                         | 8,294     |  |                       |   | 44     |            |  |   | 12,013                |  |  |            | 442 |  |                       |   | 20,307    |  |  |   | 486    | 
|Other debt instruments                                    |  |                         | 44,965    |  |                       |   | 30     |            |  |   | 2,077                 |  |  |            | 21  |  |                       |   | 47,042    |  |  |   | 51     | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Total foreign debtinstruments                             |  |                         | 1,848,738 |  |                       |   | 4,250  |            |  |   | 68,627                |  |  |            | 542 |  |                       |   | 1,917,365 |  |  |   | 4,792  | 
|Equity instruments                                        |  |                         | 160,245   |  |                       |   | 22,445 |            |  |   |                      |  |  |            |    |  |                       |   | 160,245   |  |  |   | 22,445 | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Total foreign                                             |  |                         | 2,008,983 |  |                       |   | 26,695 |            |  |   | 68,627                |  |  |            | 542 |  |                       |   | 2,077,610 |  |  |   | 27,237 | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 
|Total                                                     |  | ¥                       | 3,156,755 |  |                       | ¥ | 64,641 |            |  | ¥ | 70,262                |  |  | ¥          | 546 |  |                       | ¥ | 3,227,017 |  |  | ¥ | 65,187 | 
|                                                          |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |     |  |                       |   |           |  |  |   |        | 



98



---

##### Table of Contents

|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|----------------------------------------------------------- |  | ----------------------- | --------- |  | --------------------- | - | ----- | ---------- |  | - | --------------------- |  |  | ---------- | ----- |  | --------------------- | - | --------- |  |  | - | ------ | 
|                                                            |  | At March 31, 2015       |          
|                                                            |  | Less than twelve months |           |  | Twelve months or more |   |       | Total      | 
|                                                            |  | Fair value              |           |  | Grossunrealizedlosses |   |       | Fair value |  |   | Grossunrealizedlosses |  |  | Fair value |       |  | Grossunrealizedlosses |  
|                                                            |  | (In millions)           |          
|Held-to-maturity investments:                               |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Domestic:                                                   |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Japanese government bonds                                   |  | ¥                       |          |  |                       | ¥ |      |            |  | ¥ |                      |  |  | ¥          |      |  |                       | ¥ |          |  |  | ¥ |       | 
|Japanese municipal bonds                                    |  |                         |          |  |                       |   |      |            |  |   |                      |  |  |            |      |  |                       |   |          |  |  |   |       | 
|Japanese corporate bonds                                    |  |                         |          |  |                       |   |      |            |  |   |                      |  |  |            |      |  |                       |   |          |  |  |   |       | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total domestic                                              |  |                         |          |  |                       |   |      |            |  |   |                      |  |  |            |      |  |                       |   |          |  |  |   |       | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Foreign                                                     |  |                         |          |  |                       |   |      |            |  |   |                      |  |  |            |      |  |                       |   |          |  |  |   |       | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total                                                       |  | ¥                       |          |  |                       | ¥ |      |            |  | ¥ |                      |  |  | ¥          |      |  |                       | ¥ |          |  |  | ¥ |       | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Available-for-sale financial assets:                        |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Domestic:                                                   |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Japanese government bonds                                   |  | ¥                       | 2,067,924 |  |                       | ¥ | 3,531 |            |  | ¥ | 22                    |  |  | ¥          | 1     |  |                       | ¥ | 2,067,946 |  |  | ¥ | 3,532  | 
|Japanese municipal bonds                                    |  |                         | 1,550     |  |                       |   | 8     |            |  |   | 1,476                 |  |  |            | 5     |  |                       |   | 3,026     |  |  |   | 13     | 
|Japanese corporate bonds                                    |  |                         | 36,668    |  |                       |   | 61    |            |  |   | 498                   |  |  |            | 2     |  |                       |   | 37,166    |  |  |   | 63     | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total domestic debt instruments                             |  |                         | 2,106,142 |  |                       |   | 3,600 |            |  |   | 1,996                 |  |  |            | 8     |  |                       |   | 2,108,138 |  |  |   | 3,608  | 
|Equity instruments                                          |  |                         | 37,689    |  |                       |   | 2,087 |            |  |   |                      |  |  |            |      |  |                       |   | 37,689    |  |  |   | 2,087  | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total domestic                                              |  |                         | 2,143,831 |  |                       |   | 5,687 |            |  |   | 1,996                 |  |  |            | 8     |  |                       |   | 2,145,827 |  |  |   | 5,695  | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Foreign:                                                    |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|U.S. Treasury and other U.S. government agency bonds        |  |                         | 387,664   |  |                       |   | 2,535 |            |  |   | 441,641               |  |  |            | 2,857 |  |                       |   | 829,305   |  |  |   | 5,392  | 
|Bonds issued by other governments and official institutions |  |                         | 633,935   |  |                       |   | 604   |            |  |   | 23,507                |  |  |            | 28    |  |                       |   | 657,442   |  |  |   | 632    | 
|Mortgage-backed securities                                  |  |                         |          |  |                       |   |      |            |  |   | 15,208                |  |  |            | 408   |  |                       |   | 15,208    |  |  |   | 408    | 
|Other debt instruments                                      |  |                         | 89,627    |  |                       |   | 110   |            |  |   | 1,909                 |  |  |            | 383   |  |                       |   | 91,536    |  |  |   | 493    | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total foreign debt instruments                              |  |                         | 1,111,226 |  |                       |   | 3,249 |            |  |   | 482,265               |  |  |            | 3,676 |  |                       |   | 1,593,491 |  |  |   | 6,925  | 
|Equity instruments                                          |  |                         | 5,066     |  |                       |   | 83    |            |  |   |                      |  |  |            |      |  |                       |   | 5,066     |  |  |   | 83     | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total foreign                                               |  |                         | 1,116,292 |  |                       |   | 3,332 |            |  |   | 482,265               |  |  |            | 3,676 |  |                       |   | 1,598,557 |  |  |   | 7,008  | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total                                                       |  | ¥                       | 3,260,123 |  |                       | ¥ | 9,019 |            |  | ¥ | 484,261               |  |  | ¥          | 3,684 |  |                       | ¥ | 3,744,384 |  |  | ¥ | 12,703 | 
|                                                            |  |                         |           |  |                       |   |       |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 



99



---

##### Table of Contents

|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|----------------------------------------------------------- |  | ----------------------- | --------- |  | --------------------- | - | ------ | ---------- |  | - | --------------------- |  |  | ---------- | ----- |  | --------------------- | - | --------- |  |  | - | ------ | 
|                                                            |  | At March 31, 2014       |          
|                                                            |  | Less than twelve months |           |  | Twelve months or more |   |        | Total      | 
|                                                            |  | Fair value              |           |  | Grossunrealizedlosses |   |        | Fair value |  |   | Grossunrealizedlosses |  |  | Fair value |       |  | Grossunrealizedlosses |  
|                                                            |  | (In millions)           |          
|Held-to-maturity investments:                               |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Domestic:                                                   |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Japanese government bonds                                   |  | ¥                       |          |  |                       | ¥ |       |            |  | ¥ | 269,649               |  |  | ¥          | 125   |  |                       | ¥ | 269,649   |  |  | ¥ | 125    | 
|Japanese municipal bonds                                    |  |                         | 1,882     |  |                       |   | 2      |            |  |   |                      |  |  |            |      |  |                       |   | 1,882     |  |  |   | 2      | 
|Japanese corporate bonds                                    |  |                         | 6,585     |  |                       |   | 19     |            |  |   | 1,208                 |  |  |            | 8     |  |                       |   | 7,793     |  |  |   | 27     | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total domestic                                              |  |                         | 8,467     |  |                       |   | 21     |            |  |   | 270,857               |  |  |            | 133   |  |                       |   | 279,324   |  |  |   | 154    | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Foreign                                                     |  |                         |          |  |                       |   |       |            |  |   |                      |  |  |            |      |  |                       |   |          |  |  |   |       | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total                                                       |  | ¥                       | 8,467     |  |                       | ¥ | 21     |            |  | ¥ | 270,857               |  |  | ¥          | 133   |  |                       | ¥ | 279,324   |  |  | ¥ | 154    | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Available-for-sale financial assets:                        |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Domestic:                                                   |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Japanese government bonds                                   |  | ¥                       | 35,592    |  |                       | ¥ | 57     |            |  | ¥ | 22                    |  |  | ¥          |      |  |                       | ¥ | 35,614    |  |  | ¥ | 57     | 
|Japanese municipal bonds                                    |  |                         | 4,740     |  |                       |   | 18     |            |  |   | 2,277                 |  |  |            | 9     |  |                       |   | 7,017     |  |  |   | 27     | 
|Japanese corporate bonds                                    |  |                         | 48,777    |  |                       |   | 74     |            |  |   | 22,476                |  |  |            | 69    |  |                       |   | 71,253    |  |  |   | 143    | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total domestic debt instruments                             |  |                         | 89,109    |  |                       |   | 149    |            |  |   | 24,775                |  |  |            | 78    |  |                       |   | 113,884   |  |  |   | 227    | 
|Equity instruments                                          |  |                         | 123,013   |  |                       |   | 6,404  |            |  |   |                      |  |  |            |      |  |                       |   | 123,013   |  |  |   | 6,404  | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total domestic                                              |  |                         | 212,122   |  |                       |   | 6,553  |            |  |   | 24,775                |  |  |            | 78    |  |                       |   | 236,897   |  |  |   | 6,631  | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Foreign:                                                    |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|U.S. Treasury and other U.S. government agency bonds        |  |                         | 1,095,165 |  |                       |   | 15,531 |            |  |   | 97,688                |  |  |            | 4,824 |  |                       |   | 1,192,853 |  |  |   | 20,355 | 
|Bonds issued by other governments and official institutions |  |                         | 540,015   |  |                       |   | 541    |            |  |   |                      |  |  |            |      |  |                       |   | 540,015   |  |  |   | 541    | 
|Mortgage-backed securities                                  |  |                         | 224,568   |  |                       |   | 14,846 |            |  |   | 426                   |  |  |            | 2     |  |                       |   | 224,994   |  |  |   | 14,848 | 
|Other debt instruments                                      |  |                         | 25,733    |  |                       |   | 444    |            |  |   | 51,751                |  |  |            | 40    |  |                       |   | 77,484    |  |  |   | 484    | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total foreign debt instruments                              |  |                         | 1,885,481 |  |                       |   | 31,362 |            |  |   | 149,865               |  |  |            | 4,866 |  |                       |   | 2,035,346 |  |  |   | 36,228 | 
|Equity instruments                                          |  |                         | 13,704    |  |                       |   | 811    |            |  |   |                      |  |  |            |      |  |                       |   | 13,704    |  |  |   | 811    | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total foreign                                               |  |                         | 1,899,185 |  |                       |   | 32,173 |            |  |   | 149,865               |  |  |            | 4,866 |  |                       |   | 2,049,050 |  |  |   | 37,039 | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 
|Total                                                       |  | ¥                       | 2,111,307 |  |                       | ¥ | 38,726 |            |  | ¥ | 174,640               |  |  | ¥          | 4,944 |  |                       | ¥ | 2,285,947 |  |  | ¥ | 43,670 | 
|                                                            |  |                         |           |  |                       |   |        |            |  |   |                       |  |  |            |       |  |                       |   |           |  |  |   |        | 



100



---

##### Table of Contents

Trading Assets

The following table shows our trading assets at March 31, 2016 and 2015. Our trading assets were ¥3,615,092 million at March 31, 2016,
an increase of ¥371,907 million from ¥3,243,185 million at March 31, 2015. The increase was primarily due to an increase in our holdings of Japanese government bonds.



|                     |  |               |           |  |      |   |           | 
|-------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                     |  | At March 31,  |          
|                     |  | 2016          |           |  | 2015 |  
|                     |  | (In millions) |          
|Debt instruments     |  | ¥             | 3,174,309 |  |      | ¥ | 2,618,593 | 
|Equity instruments   |  |               | 440,783   |  |      |   | 624,592   | 
|                     |  |               |           |  |      |   |           | 
|Total trading assets |  | ¥             | 3,615,092 |  |      | ¥ | 3,243,185 | 
|                     |  |               |           |  |      |   |           | 

Financial Assets at Fair Value Through Profit or Loss

The following table shows the fair value of our financial assets at fair value through profit or loss at March 31, 2016 and 2015. The
fair value was ¥1,611,877 million at March 31, 2016, a decrease of ¥173,807 million from ¥1,785,684 million at March 31, 2015. The decrease was primarily due to a decrease in our holdings of equity instruments.



|                                                            |  |               |           |  |      |   |           | 
|----------------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                            |  | At March 31,  |          
|                                                            |  | 2016          |           |  | 2015 |  
|                                                            |  | (In millions) |          
|Debt instruments                                            |  | ¥             | 1,582,571 |  |      | ¥ | 1,654,259 | 
|Equity instruments                                          |  |               | 29,306    |  |      |   | 131,425   | 
|                                                            |  |               |           |  |      |   |           | 
|Total financial assets at fair value through profit or loss |  | ¥             | 1,611,877 |  |      | ¥ | 1,785,684 | 
|                                                            |  |               |           |  |      |   |           | 

Exposures to Selected European Countries

The following tables show exposures to Greece, Italy, Ireland, Portugal and Spain at March 31, 2016 and 2015. Our exposures to those
countries consisted mainly of loans, trade financing, leases, guarantees and unused commitments to large corporations, and project finance transactions. All figures in this subsection are based on the data collected for our internal risk management.



|         |  |                   |     |  |                       |   |     |                           |  |   |       |  |  |   |       | 
|-------- |  | ----------------- | --- |  | --------------------- | - | --- | ------------------------- |  | - | ----- |  |  | - | ----- | 
|         |  | At March 31, 2016 |    
|         |  | Sovereign         |     |  | Financialinstitutions |   |     | Non-financialcorporations |  |   | Total | 
|         |  | (In billions)     |    
|Greece   |  | ¥                 |    |  |                       | ¥ |    |                           |  | ¥ | 6.3   |  |  | ¥ | 6.3   | 
|Italy    |  |                   |    |  |                       |   | 7.1 |                           |  |   | 284.0 |  |  |   | 291.1 | 
|Ireland  |  |                   |    |  |                       |   |    |                           |  |   | 368.5 |  |  |   | 368.5 | 
|Portugal |  |                   |    |  |                       |   |    |                           |  |   | 5.9   |  |  |   | 5.9   | 
|Spain    |  |                   | 0.9 |  |                       |   | 0.2 |                           |  |   | 271.7 |  |  |   | 272.8 | 
|         |  |                   |     |  |                       |   |     |                           |  |   |       |  |  |   |       | 
|Total    |  | ¥                 | 0.9 |  |                       | ¥ | 7.3 |                           |  | ¥ | 936.4 |  |  | ¥ | 944.6 | 
|         |  |                   |     |  |                       |   |     |                           |  |   |       |  |  |   |       | 



|         |  |                   |     |  |                       |   |     |                           |  |   |       |  |  |   |       | 
|-------- |  | ----------------- | --- |  | --------------------- | - | --- | ------------------------- |  | - | ----- |  |  | - | ----- | 
|         |  | At March 31, 2015 |    
|         |  | Sovereign         |     |  | Financialinstitutions |   |     | Non-financialcorporations |  |   | Total | 
|         |  | (In billions)     |    
|Greece   |  | ¥                 |    |  |                       | ¥ |    |                           |  | ¥ | 7.6   |  |  | ¥ | 7.6   | 
|Italy    |  |                   |    |  |                       |   | 0.9 |                           |  |   | 221.9 |  |  |   | 222.8 | 
|Ireland  |  |                   |    |  |                       |   |    |                           |  |   | 236.0 |  |  |   | 236.0 | 
|Portugal |  |                   |    |  |                       |   |    |                           |  |   | 6.1   |  |  |   | 6.1   | 
|Spain    |  |                   | 2.3 |  |                       |   | 0.2 |                           |  |   | 260.5 |  |  |   | 263.0 | 
|         |  |                   |     |  |                       |   |     |                           |  |   |       |  |  |   |       | 
|Total    |  | ¥                 | 2.3 |  |                       | ¥ | 1.1 |                           |  | ¥ | 732.1 |  |  | ¥ | 735.5 | 
|         |  |                   |     |  |                       |   |     |                           |  |   |       |  |  |   |       | 



101



---

##### Table of Contents

Liabilities

Our total liabilities increased by ¥969,937 million from ¥168,160,616 million at March 31, 2015 to ¥169,130,553 million at
March 31, 2016, primarily due to an increase in deposits.

The following table shows our liabilities at March 31, 2016 and
2015.



|                                                             |  |               |             |  |      |   |             | 
|------------------------------------------------------------ |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                                                             |  | At March 31,  |            
|                                                             |  | 2016          |             |  | 2015 |  
|                                                             |  | (In millions) |            
|Deposits                                                     |  | ¥             | 125,940,797 |  |      | ¥ | 115,833,980 | 
|Call money and bills sold                                    |  |               | 1,220,456   |  |      |   | 5,873,124   | 
|Repurchase agreements and cash collateral on securities lent |  |               | 6,839,474   |  |      |   | 8,820,083   | 
|Trading liabilities                                          |  |               | 2,197,673   |  |      |   | 2,193,400   | 
|Derivative financial instruments                             |  |               | 5,086,083   |  |      |   | 6,739,787   | 
|Borrowings                                                   |  |               | 9,914,129   |  |      |   | 11,217,052  | 
|Debt securities in issue                                     |  |               | 10,829,612  |  |      |   | 11,051,431  | 
|Provisions                                                   |  |               | 262,401     |  |      |   | 207,624     | 
|Other liabilities                                            |  |               | 6,410,733   |  |      |   | 5,548,965   | 
|Current tax liabilities                                      |  |               | 93,307      |  |      |   | 111,365     | 
|Deferred tax liabilities                                     |  |               | 335,888     |  |      |   | 563,805     | 
|                                                             |  |               |             |  |      |   |             | 
|Total liabilities                                            |  | ¥             | 169,130,553 |  |      | ¥ | 168,160,616 | 
|                                                             |  |               |             |  |      |   |             | 

Deposits

We offer a wide range of standard banking accounts through the offices of our banking subsidiaries in Japan, including non-interest-bearing demand deposits, interest-bearing demand deposits, deposits at
notice, time deposits and negotiable certificates of deposit. Domestic deposits, approximately 80% of total deposits, are our principal source of funds for our domestic operations. The deposits in the domestic offices of our banking subsidiaries are
principally from individuals and private corporations, with the balance from governmental bodies (including municipal authorities) and financial institutions.

The Banks foreign offices accept deposits mainly in U.S. dollars, but also in yen and other currencies, and are active participants in the Euro-currency market as well as the United States domestic
money market. Foreign deposits mainly consist of stable types of deposits, such as deposits at notice, time deposits, and negotiable certificates of deposit. These deposits typically pay interest determined with reference to market rates such as
LIBOR.

Our deposit balances at March 31, 2016 were ¥125,940,797 million, an increase of ¥10,106,817 million, or 9%,
from ¥115,833,980 million at March 31, 2015, primarily due to increases in demand deposits at domestic offices and time deposits and deposits at notice at foreign offices, reflecting our efforts to expand and diversify our foreign currency
funding sources for overseas business development.



102



---

##### Table of Contents

The following table shows a breakdown of our domestic and foreign offices deposits at
the dates indicated.



|                                     |  |               |             |  |      |   |             | 
|------------------------------------ |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                                     |  | At March 31,  |            
|                                     |  | 2016          |             |  | 2015 |  
|                                     |  | (In millions) |            
|Domestic offices:                    |  |               |             |  |      |   |             | 
|Non-interest-bearing demand deposits |  | ¥             | 17,566,123  |  |      | ¥ | 15,387,795  | 
|Interest-bearing demand deposits     |  |               | 44,975,104  |  |      |   | 40,593,134  | 
|Deposits at notice                   |  |               | 874,581     |  |      |   | 821,717     | 
|Time deposits                        |  |               | 22,921,709  |  |      |   | 24,186,585  | 
|Negotiable certificates of deposit   |  |               | 6,451,869   |  |      |   | 5,705,862   | 
|Others                               |  |               | 7,242,800   |  |      |   | 5,736,495   | 
|                                     |  |               |             |  |      |   |             | 
|Total domestic offices               |  |               | 100,032,186 |  |      |   | 92,431,588  | 
|                                     |  |               |             |  |      |   |             | 
|Foreign offices:                     |  |               |             |  |      |   |             | 
|Non-interest-bearing demand deposits |  |               | 1,097,531   |  |      |   | 862,698     | 
|Interest-bearing demand deposits     |  |               | 1,865,098   |  |      |   | 1,448,643   | 
|Deposits at notice                   |  |               | 8,819,990   |  |      |   | 7,968,300   | 
|Time deposits                        |  |               | 6,222,716   |  |      |   | 4,897,880   | 
|Negotiable certificates of deposit   |  |               | 7,797,966   |  |      |   | 8,120,036   | 
|Others                               |  |               | 105,310     |  |      |   | 104,835     | 
|                                     |  |               |             |  |      |   |             | 
|Total foreign offices                |  |               | 25,908,611  |  |      |   | 23,402,392  | 
|                                     |  |               |             |  |      |   |             | 
|Total deposits                       |  | ¥             | 125,940,797 |  |      | ¥ | 115,833,980 | 
|                                     |  |               |             |  |      |   |             | 

Borrowings

Borrowings include short-term borrowings, unsubordinated and subordinated long-term borrowings, liabilities associated with securitization transactions of our own assets, and lease obligations. At March
31, 2016, our borrowings were ¥9,914,129 million, a decrease of ¥1,302,923 million, or 12%, from ¥11,217,052 million at March 31, 2015, primarily due to a decrease in short-term borrowings.

At March 31, 2016, our short-term borrowings accounted for 31% of our total borrowings, and our long-term borrowings accounted for 57% of
our total borrowings.

The following table shows the balances with respect to our borrowings at March 31, 2016 and 2015.



|                                                        |  |               |           |  |      |   |            | 
|------------------------------------------------------- |  | ------------- | --------- |  | ---- | - | ---------- | 
|                                                        |  | At March 31,  |          
|                                                        |  | 2016          |           |  | 2015 |  
|                                                        |  | (In millions) |          
|Short-term borrowings                                   |  | ¥             | 3,073,509 |  |      | ¥ | 6,746,249  | 
|Long-term borrowings:                                   |  |               |           |  |      |   |            | 
|Unsubordinated                                          |  |               | 5,312,744 |  |      |   | 2,947,573  | 
|Subordinated                                            |  |               | 295,200   |  |      |   | 317,461    | 
|Liabilities associated with securitization transactions |  |               | 1,126,985 |  |      |   | 1,103,929  | 
|Lease obligations                                       |  |               | 105,691   |  |      |   | 101,840    | 
|                                                        |  |               |           |  |      |   |            | 
|Total borrowings                                        |  | ¥             | 9,914,129 |  |      | ¥ | 11,217,052 | 
|                                                        |  |               |           |  |      |   |            | 

For more information, see Note 18 Borrowings to our consolidated financial statements
included elsewhere in this annual report, which sets forth summaries of short- and long-term borrowings with their contractual interest rates and currencies.



103



---

##### Table of Contents

Debt Securities in Issue

Debt securities in issue at March 31, 2016 were ¥10,829,612 million, a decrease of ¥221,819 million, or 2%, from ¥11,051,431
million at March 31, 2015, primarily due to a decrease in commercial paper, which was partially offset by an increase in senior bonds, reflecting our efforts to expand foreign currency funding sources.



|                               |  |               |            |  |      |   |            | 
|------------------------------ |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                               |  | At March 31,  |           
|                               |  | 2016          |            |  | 2015 |  
|                               |  | (In millions) |           
|Commercial paper               |  | ¥             | 4,169,515  |  |      | ¥ | 4,813,902  | 
|Bonds                          |  |               | 4,819,155  |  |      |   | 4,461,425  | 
|Subordinated bonds             |  |               | 1,840,942  |  |      |   | 1,776,104  | 
|                               |  |               |            |  |      |   |            | 
|Total debt securities in issue |  | ¥             | 10,829,612 |  |      | ¥ | 11,051,431 | 
|                               |  |               |            |  |      |   |            | 

For additional information, see Note 19 Debt Securities in Issue to our consolidated
financial statements included elsewhere in this annual report, which sets forth summaries of debt securities in issue with their contractual interest rates and currencies.

In the normal course of business, we enter into contractual obligations that require future cash payments. Item 5.F. Tabular Disclosure of Contractual Obligations sets forth a summary of our
contractual cash obligations at March 31, 2016.

Total Equity

Our total equity increased by ¥21,249 million from ¥11,020,850 million at March 31, 2015 to ¥11,042,099 million at March
31, 2016, primarily due to increases in retained earnings, which mainly reflected our net profit, and equity attributable to other equity instruments holders. Equity attributable to other equity instruments holders consisted of perpetual
subordinated bonds qualified as Additional Tier 1 capital and classified as equity under IFRS. The increase was partially offset by a decrease in other reserves, primarily due to a decrease in available-for-sale financial assets reserve reflecting a
decline in market prices of domestic equity instruments. For more information, see Note 24 Shareholders Equity and Note 25 Non-controlling Interests and Equity Attributable to Other Equity Instruments Holders to our
consolidated financial statements included elsewhere in this annual report.



|                                                                             |  |               |            |   |      |   |            |  
|---------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | -
|                                                                             |  | At March 31,  |           
|                                                                             |  | 2016          |            |   | 2015 |  
|                                                                             |  | (In millions) |           
|Capital stock                                                                |  | ¥             | 2,337,896  |   |      | ¥ | 2,337,896  |  
|Capital surplus                                                              |  |               | 863,503    |   |      |   | 862,971    |  
|Retained earnings                                                            |  |               | 4,186,683  |   |      |   | 3,554,688  |  
|Other reserves                                                               |  |               | 1,991,955  |   |      |   | 2,759,084  |  
|Treasury stock                                                               |  |               | (175,381   | ) |      |   | (175,261   | )
|                                                                             |  |               |            |   |      |   |            |  
|Equity attributable to shareholders of Sumitomo Mitsui Financial Group, Inc. |  |               | 9,204,656  |   |      |   | 9,339,378  |  
|Non-controlling interests                                                    |  |               | 1,537,548  |   |      |   | 1,681,472  |  
|Equity attributable to other equity instruments holders                      |  |               | 299,895    |   |      |   |           |  
|                                                                             |  |               |            |   |      |   |            |  
|Total equity                                                                 |  | ¥             | 11,042,099 |   |      | ¥ | 11,020,850 |  
|                                                                             |  |               |            |   |      |   |            |  



104



---

##### Table of Contents

Reconciliation with Japanese GAAP

Our consolidated financial statements are prepared in accordance with IFRS as summarized in Note 2 Summary of Significant Accounting
Policies to our consolidated financial statements included elsewhere in this annual report. These policies differ in some respects from Japanese GAAP. Under Japanese banking regulations, we report our annual financial results prepared under
Japanese GAAP. To show the major reconciling items between our IFRS and Japanese GAAP consolidated financial statements, we have provided below, with respect to our most recent fiscal year, a reconciliation of consolidated net profit and total
equity under IFRS with those amounts under Japanese GAAP.



|                                                   |  |                                                |            |   |            |   |          |  
|-------------------------------------------------- |  | ---------------------------------------------- | ---------- | - | ---------- | - | -------- | -
|                                                   |  | At and for the fiscal year endedMarch 31, 2016 |           
|                                                   |  | Total equity                                   |            |   | Net profit |  
|                                                   |  | (In millions)                                  |           
|IFRS                                               |  | ¥                                              | 11,042,099 |   |            | ¥ | 952,822  |  
|Differences arising from different accounting for: |  |                                                |            |   |            |   |          |  
|1.   Scope of consolidation                        |  |                                                | 119,152    |   |            |   | 3,099    |  
|2.   Derivative financial instruments              |  |                                                | 133,716    |   |            |   | (173,126 | )
|3.   Investment securities                         |  |                                                | (256,751   | ) |            |   | (56,615  | )
|4.   Loans and advances                            |  |                                                | 25,417     |   |            |   | 35,154   |  
|5.   Investments in associates and joint ventures  |  |                                                | (86,246    | ) |            |   | (53,443  | )
|6.   Property, plant and equipment                 |  |                                                | (9,261     | ) |            |   | (1,333   | )
|7.   Lease accounting                              |  |                                                | (539       | ) |            |   | 1,462    |  
|8.   Defined benefit plans                         |  |                                                | (32,151    | ) |            |   | (6,632   | )
|9.   Deferred tax assets                           |  |                                                | (35,371    | ) |            |   | 51,191   |  
|10. Foreign currency translation                   |  |                                                |           |   |            |   | (61,680  | )
|11. Classification of equity and liability         |  |                                                | (302,535   | ) |            |   | (5,412   | )
|Others                                             |  |                                                | (151,244   | ) |            |   | (27,004  | )
|Tax effect of the above                            |  |                                                | 1,383      |   |            |   | 96,640   |  
|                                                   |  |                                                |            |   |            |   |          |  
|Japanese GAAP                                      |  | ¥                                              | 10,447,669 |   |            | ¥ | 755,123  |  
|                                                   |  |                                                |            |   |            |   |          |  

The explanations below summarize certain differences between IFRS and Japanese GAAP that may be
significant. The paragraphs below refer to the corresponding items as set forth in the table above.



|1. | Scope of consolidation
|-- | ----------------------

Under Japanese GAAP, we consolidate an entity when we effectively control the decision making body of the entitys operating and
financing policies. Control is generally presumed to exist when we own more than half of the voting power, or own from 40% to 50% of the voting power and certain facts exist indicating control. Certain entities established for securitization are
presumed not to be controlled. Under IFRS, we consolidate an entity when we control the entity. Control is generally presumed to exist when we are exposed, or have rights, to variable returns from our involvement with the entity and have the ability
to affect those returns through our power over the entity. The existence and effect of potential voting rights that are deemed to be substantive are taken into account when assessing the control. When assessing control of an entity under IFRS, we
apply a single consolidation model to all types of entities, irrespective of their nature. This results in a difference in the scope of consolidation between Japanese GAAP and IFRS. Most significantly, certain entities designed for special purpose
such as securitization, usually in the form of trusts under the Trust Act of Japan, are not consolidated under Japanese GAAP but consolidated under IFRS. Accordingly, both the cumulative gains on transfers of financial assets to these securitization
vehicles and amortization of our retained subordinate interest under Japanese GAAP were not recognized under IFRS due to consolidation of such vehicles.



|2. | Derivative financial instruments
|-- | --------------------------------

Under Japanese GAAP, an embedded derivative shall be separately accounted for when the host contract may suffer losses arising from the embedded derivative. Also, an entity may separately account for an
embedded



105



---

##### Table of Contents

derivative if the entity manages it separately, even though the criteria for separation are not fully met. Under IFRS, an embedded derivative shall be separated from the host contract and
accounted for as a derivative if, and only if its economic characteristics and risks are not closely related to those of the host contract. Accordingly, certain embedded derivatives that are separately accounted for under Japanese GAAP but do not
meet the criteria for separation under IFRS are adjusted such that they are combined with the host contract, and vice versa. In addition, the separation of the embedded derivatives from the host contract is adjusted so as not to result in any gain
or loss at initial recognition under IFRS.

We apply hedge accounting under Japanese GAAP. However, IFRS imposes onerous
documentation and effectiveness testing requirements on entities wishing to apply hedge accounting. The result of these requirements is that it is more difficult to achieve hedge accounting under IFRS than under Japanese GAAP, and the effects of
hedge accounting under Japanese GAAP have therefore been reversed under IFRS.

Japanese GAAP and IFRS require OTC derivatives
to be measured at fair value. In principle, there is no significant difference in the definitions of fair value, but in practice there is diversity in the application of valuation techniques used for fair value under Japanese GAAP and IFRS.
Therefore to meet the requirements of fair value under IFRS, adjustments have been made to the fair values under Japanese GAAP to reflect credit risk adjustments for OTC derivatives. Certain guarantees under Japanese GAAP do not meet the definition
of a financial guarantee under IFRS but meet that of a derivative. These guarantees are measured at fair value and the change in fair value is recognized in the consolidated income statement under IFRS.



|3. | Investment securities
|-- | ---------------------

Under Japanese GAAP, certain financial assets classified as available-for-sale, such as unlisted stocks, are measured at cost. However,
under IFRS available-for-sale financial assets (and financial assets at fair value through profit or loss) should be measured at fair value. The fair value of financial instruments where there is no quoted price in an active market is determined by
using valuation techniques. In addition, the fair values of financial instruments under Japanese GAAP have been adjusted in order to meet the requirements of fair value under IFRS. For example, we use the last 1-month average of the closing
transaction prices for the fair value measurement of available-for-sale financial assets (listed stocks) under Japanese GAAP, whereas closing spot prices are used under IFRS. Additionally under IFRS, we classify certain hybrid instruments as
financial assets at fair value through profit or loss as we are unable to measure the embedded derivative separately from its host contract although it is required to separate the embedded derivative from the host contract. Accordingly, the change
in fair value of such hybrid instruments is recognized in profit or loss.

Under Japanese GAAP, we recognize impairment of
available-for-sale equity instruments if the decline in fair value below the cost, less previously recognized impairment loss, is in general 50% or more. Under IFRS, we assess whether there is objective evidence that available-for-sale equity
instruments are impaired, including a significant or prolonged decline in the fair value below cost and other qualitative impairment indicators. Additionally, under Japanese GAAP, we reverse impairment losses recognized in a previous interim period,
whereas the reversal of the impairment losses on equity instruments is not allowed under IFRS.



|4. | Loans and advances
|-- | ------------------

Under
Japanese GAAP, the reserve for possible loan losses for specifically identified significant loans is calculated by the discounted cash flow (DCF) method, which is based on the present value of reasonably estimated cash flows discounted
at the original contractual interest rate of the loan. The reserve for possible loan losses for the remaining loans is collectively calculated using the historical loss experience, or individually calculated based on the estimated uncollectible
amount considering the historical loss experience and the recoveries from collateral, guarantees and any other collectible cash flows. The historical loss experience for 1 year or 3 years, according to the obligor grade, is calculated basically
based on the averaged historical results of at least the past three years. Under IFRS, the allowance for loan losses for individually significant impaired loans is calculated by the DCF method based on the best estimate of cash flows discounted at
the original



106



---

##### Table of Contents

effective interest rate which differs from the calculation of the DCF method under Japanese GAAP. The scope of the loans that are subject to the DCF method under IFRS is wider than that under
Japanese GAAP. The allowance for loan losses for the remaining loans is collectively calculated by homogeneous group using statistical methods based on the historical loss experience and incorporating the effect of the time value of money. A
qualitative analysis based on related economic factors is then performed to reflect the current conditions at the end of the reporting period. The allowance for the non-impaired loan losses is calculated as incurred but not yet identified losses for
the period between the impairment occurring and the loss being identified, which are different from the expected losses under Japanese GAAP.

Under Japanese GAAP, loan origination fees and costs are generally recognized in the consolidated income statement as incurred. Under IFRS, loan origination fees and costs that are incremental and
directly attributable to the origination of a loan are deferred and thus, included in the calculation of the effective interest rate.

Under Japanese GAAP, loan commitments are not recognized in the consolidated statement of financial position. Provision for the credit risk on these commitments is included as part of the reserve for
possible loan losses. Under IFRS, loan commitments are not recognized in the consolidated statement of financial position and a provision for the expected losses to us in relation to the loan commitments is measured based on IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. Under Japanese GAAP, all guarantee contracts are accounted for by accruing both asset and liability accounts at the nominal guarantee amount. A provision for the credit risk of the guarantee is
calculated using the same method as the reserve for possible loan losses and is included as part of it. Under IFRS, a financial guarantee contract is specifically defined in IAS 39 Financial Instruments: Recognition and Measurement as a
contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of the debt instruments. Financial
guarantees are initially recognized at fair value and subsequently measured at the higher of the amount determined in accordance with IAS 37 or the amount initially recognized (i.e., fair value) less, when appropriate, cumulative amortization
recognized in accordance with IAS 18 Revenue.



|5. | Investments in associates and joint ventures
|-- | --------------------------------------------

Under Japanese GAAP, although goodwill related to investments in associates and joint ventures is included in the carrying amount of the investments, we are required to recognize and measure impairment
losses only on goodwill separately from the investments if impairment indicators for the goodwill are identified. Under IFRS, for investments in associates and joint ventures, if we identify objective evidence of impairment, the entire carrying
amount of the investment is tested for impairment since goodwill is not separately recognized on the initial acquisition of the investment. Additionally, the net profit of associates is adjusted for differences between Japanese GAAP and IFRS in
accordance with our accounting policy prior to applying the equity method under IFRS.



|6. | Property, plant and equipment
|-- | -----------------------------

For certain assets that are depreciated using the declining balance method under Japanese GAAP, we apply the straight-line method of depreciation to those assets under IFRS as we consider that the
straight-line method most closely reflects the expected pattern of consumption of the future economic benefits embodied in those assets. Additionally under IFRS, residual values of assets are reviewed at least at the end of each reporting period.
After reviews of all categories of property, plant and equipment, the residual values of assets are considered to be zero under IFRS, whereas residual values are assigned to certain assets under Japanese GAAP.



|7. | Lease accounting
|-- | ----------------

We
account for finance lease transactions without a transfer of ownership commencing before April 1, 2008 as operating leases under Japanese GAAP. However, such accounting treatment is not allowed under IFRS. Thus, we made certain adjustments for those
transactions in order to comply with the accounting treatment under IFRS. From the fiscal year beginning after April 1, 2008, a new Japanese GAAP standard for lease accounting became effective,



107



---

##### Table of Contents

which removed the differences for finance leases (with or without a transfer of ownership) between Japanese GAAP and IFRS. Therefore, no adjustment is needed for finance lease transactions
entered into after April 1, 2008.



|8. | Defined benefit plans
|-- | ---------------------

Under Japanese GAAP, the present value of the defined benefit obligation is discounted by the rates based on the market yields of
long-term Japanese government bonds. Additionally, the discount rates for the previous reporting period can be used for the current reporting period, if the change in the present value of the defined benefit obligation caused by a change in the
discount rates from the previous reporting period to the current reporting period is less than 10%. Under IFRS, the discount rates are determined by market yields on high quality corporate bonds at the end of each reporting period.

Under Japanese GAAP, the expected rates of return on plan assets for the previous reporting period can be used for the current reporting
period, unless the impact of the profit or loss for the current reporting period is considered to be significant. Under IFRS, the interest cost and expected return on plan assets are replaced with a net interest amount which is calculated by
applying the discount rate to the net defined benefit liability (asset).

Under Japanese GAAP, the actuarial gains and losses
are recognized in other comprehensive income, and are amortized using the straight-line method. Under IFRS, actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions in the year, and return on plan assets
excluding interest income are recognized in other comprehensive income and are never reclassified to profit and loss.

Under
Japanese GAAP, past service costs are recognized in other comprehensive income and are amortized using the straight-line method. Under IFRS, past service costs are recognized immediately in the consolidated income statement.



|9. | Deferred tax assets
|-- | -------------------

Under Japanese GAAP, we recognize deferred tax assets to the extent that the realization of the tax benefit is highly probable based on
the schedule. Under IFRS, deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. For example, deferred tax assets for deductible
temporary differences relating to impairment of financial instruments of which the timing of the reversal is difficult to estimate cannot be recognized under Japanese GAAP, whereas they can be recognized under IFRS to the extent that it is probable
that future taxable profit will be available.



|10. | Foreign currency translation
|--- | ----------------------------

Under Japanese GAAP, the income statement items of foreign operations are translated into Japanese yen, our presentation currency, using the (spot) closing rate, whereas under IFRS they are translated
into the presentation currency using the exchange rate at the dates of the transactions or, if the exchange rates do not fluctuate significantly, at average exchange rates. In addition, under Japanese GAAP, certain foreign operations monetary
items denominated in foreign currencies are translated into Japanese yen using the exchange rate at the end of the reporting period. However, under IFRS the monetary items for which settlement is neither planned nor likely to occur in the
foreseeable future are translated using the exchange rates at the dates of initial transactions.



|11. | Classification of equity and liability
|--- | --------------------------------------

Under Japanese GAAP, a financial instrument is generally classified as an equity instrument or a financial liability in light of its legal form. Under IFRS, a financial instrument or its component parts
are classified as equity instruments or financial liabilities in accordance with the substance of the contractual arrangement and the definitions of financial liabilities and equity instruments. A financial instrument is classified as a financial
liability if there is a contractual obligation to deliver cash or another financial asset other than a fixed number of equity shares in exchange for a fixed amount of cash or another financial asset. In the absence of such a contractual obligation,
the financial instrument is classified as an equity instrument.



108



---

##### Table of Contents

5.B.    LIQUIDITY AND CAPITAL RESOURCES

We consistently endeavor to enhance the management of our liquidity profile and strengthen our capital base to meet our
customers loan requirements and deposit withdrawals and respond to unforeseen situations such as adverse movements in stock, foreign currency, interest rate and other markets, or changes in general domestic or international conditions.

Liquidity

We derive funding for our operations both from domestic and international sources. Our domestic funding is derived primarily from deposits
placed with the Bank by its corporate and individual customers, and also from call money (inter-bank), bills sold (inter-bank promissory notes), repurchase agreements, borrowings, and negotiable certificates of deposit issued by the Bank to domestic
and international customers. Our international sources of funds are principally from deposits from corporate customers and inter-bank market, negotiable certificates of deposit, commercial paper, and also from repurchase agreements and cash
collateral on securities lent. We closely monitor maturity gaps and foreign exchange exposure in order to manage our liquidity profile.

As shown in the following table, total deposits increased by ¥10,106,817 million, or 9%, from ¥115,833,980 million at March 31, 2015 to ¥125,940,797 million at March 31, 2016. The balance
of deposits at March 31, 2016 exceeded the balance of loans and advances by ¥37,078,426 million, primarily due to the stable deposit base in Japan. Our loan-to-deposit ratio (total loans and advances divided by total deposits) in the same period
was 71%, which contributed greatly to the reduction of our liquidity risk. Our balances of large-denomination domestic yen time deposits are stable due to the historically high rollover rate of our corporate customers and individual depositors.



|                   |  |               |             |  |      |   |             | 
|------------------ |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                   |  | At March 31,  |            
|                   |  | 2016          |             |  | 2015 |  
|                   |  | (In millions) |            
|Loans and advances |  | ¥             | 88,862,371  |  |      | ¥ | 86,971,716  | 
|Deposits           |  |               | 125,940,797 |  |      |   | 115,833,980 | 

We have invested the excess balance of deposits against loans and advances primarily in marketable
securities and other highly liquid assets, such as Japanese government bonds. The Banks Treasury Unit actively monitors the movement of interest rates and maturity profile of its bond portfolio as part of the Banks overall risk
management. The bonds can be used to enhance liquidity. When needed, they can be used as collateral for call money or other money market funding or short-term borrowings from the BOJ.

Secondary sources of liquidity include short-term debts, such as call money, bills sold, and commercial paper issued at an inter-bank or
other wholesale markets. We also issue long-term debts, including both senior and subordinated debts, as additional sources of liquidity. With short- and long-term debts, we can diversify our funding sources, effectively manage our funding costs and
enhance our capital adequacy ratios when appropriate.

We source our funding in foreign currencies primarily from financial
institutions, general corporations, and institutional investors, through short- and long-term financing. Even if we encounter declines in our credit quality or that of Japan in the future, we expect to be able to purchase foreign currencies in
sufficient amounts using the yen funds raised through our domestic customer base. As further measures to support our foreign currency liquidity, we hold foreign debt securities, maintain credit lines and swap facilities denominated in foreign
currencies, and pledge collateral to the U.S. Federal Reserve Bank.

We maintain management and control systems to support our
ability to access liquidity on a stable and cost-effective basis. For further information, see Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other RiskMarket Risk and Liquidity RiskFramework for Market
and Liquidity Risk Management.



109



---

##### Table of Contents

We believe we are able to access such sources of liquidity on a stable and flexible basis by
keeping credit ratings at a high level. The following table shows credit ratings assigned to SMFG by Moodys, S&P and Fitch at May 31, 2016:



|                |  |         |  |            |  |           |  |         |  |            |  |           |  |         |  |           
|--------------- |  | ------- |  | ---------- |  | --------- |  | ------- |  | ---------- |  | --------- |  | ------- |  | ----------
|At May 31, 2016
|Moodys         |  | S&P     |  | Fitch     
|Long-term(1)    |  | Outlook |  | Short-term |  | Long-term |  | Outlook |  | Short-term |  | Long-term |  | Outlook |  | Short-term
|A1              |  | S       |  |           |  | A-        |  | S       |  |           |  | A         |  | S       |  | F1        



|(1) | On March 1, 2016, Moodys assigned the long-term senior unsecured rating of A1 to SMFG.
|--- | ---------------------------------------------------------------------------------------

The following table shows credit ratings assigned to the Bank by Moodys, S&P and Fitch at May 31, 2016:



|                |  |         |  |            |  |           |  |         |  |            |  |           |  |         |  |           
|--------------- |  | ------- |  | ---------- |  | --------- |  | ------- |  | ---------- |  | --------- |  | ------- |  | ----------
|At May 31, 2016
|Moodys         |  | S&P     |  | Fitch     
|Long-term       |  | Outlook |  | Short-term |  | Long-term |  | Outlook |  | Short-term |  | Long-term |  | Outlook |  | Short-term
|A1              |  | S       |  | P-1        |  | A         |  | S       |  | A-1        |  | A         |  | S       |  | F1        

We are assigned credit ratings by major domestic and international credit rating agencies. Credit ratings
do not constitute recommendations to purchase, sell or hold a security, and rating agencies may review or indicate an intention to review ratings at any time. While the methodology and rating system vary among rating agencies, credit ratings are
generally based on information provided by us or independent sources, and can be influenced by the credit ratings of Japanese government bonds and broader views of the Japanese financial system. Any downgrade in or withdrawal of these credit
ratings, or any adverse change in these ratings relative to other financial institutions, could increase our borrowing costs, reduce our access to the capital markets and otherwise negatively affect our ability to raise funds, which in turn could
have a negative impact on our liquidity position.

The FSAs guidelines for LCR applicable to banks with international
operations are based on the full text of the LCR standard issued by the BCBS in January 2013. Under these guidelines, banks with international operations must maintain LCR of 100% on both a consolidated basis and a nonconsolidated basis, while the
minimum LCR requirements are being phased in between March 31, 2015 and March 31, 2019 with an increase of 10% in each year starting from 60%. The following table shows the LCRs of SMFG and the Bank for the fiscal year ended March 31, 2016. Each
figure is calculated based on our financial statements prepared in accordance with Japanese GAAP, as required by the FSAs LCR guidelines.



|                       |  |                                            |       |  
|---------------------- |  | ------------------------------------------ | ----- | -
|                       |  | For the fiscal yearended March 31, 2016(1) |      
|SMFG (consolidated)    |  |                                            | 115.2 | %
|SMBC (consolidated)    |  |                                            | 120.4 | %
|SMBC (nonconsolidated) |  |                                            | 122.7 | %



|(1) | Under the FSAs LCR guidelines, LCR is calculated by dividing the month-end average balance of high-quality liquid assets at the end of January, February and March
2016 by the monthly average amount of total net cash outflows for the same three months.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For further
information, see Item 4.B. Business OverviewRegulations in JapanRegulations Regarding Capital Adequacy and LiquidityLiquidity Requirement.

Capital Management

With regard to capital management, we strictly abide by
the capital adequacy guidelines set by the FSA. Japans capital adequacy guidelines are based on the Basel Capital Accord, which was proposed by the BCBS for uniform application to all banks which have international operations in industrialized
countries. Japans capital



110



---

##### Table of Contents

adequacy guidelines may be different from those of central banks or supervisory bodies of other countries because they have been designed by the FSA to suit the Japanese banking environment. Our
banking subsidiaries outside of Japan are also subject to the local capital ratio requirements.

Each figure for the FSA
capital adequacy guidelines is calculated based on our financial statements prepared under Japanese GAAP.

The FSA capital
adequacy guidelines permit Japanese banks to choose from the standardized approach (SA), the foundation IRB approach and the advanced IRB approach for credit risk, and the basic indicator approach (BIA), the standardized
approach (TSA) and the AMA for operational risk. To be eligible to adopt the foundation IRB approach or the advanced IRB approach for credit risk, and the TSA or the AMA for operational risk, a Japanese bank must establish advanced risk
management systems and receive prior approval from the FSA.

We and the Bank have adopted the advanced IRB approach since
March 31, 2009 and the AMA since March 31, 2008.

In December 2010, the BCBS published the new Basel III rules text to
implement the Basel III framework, which sets out higher and better-quality capital, better risk coverage, the introduction of a leverage ratio as a backstop to the risk-based requirement, measures to promote the build-up of capital that can be
drawn down in periods of stress, and the introduction of two global liquidity standards. The main measures of the minimum capital requirements in the Basel III framework began on January 1, 2013 and will be fully applied from January 1, 2019.

These capital reforms increase the minimum common equity requirement from 2% to 4.5% and require banks to hold a capital
conservation buffer, which is being phased in from January 2016 with the initial ratio of 0.625% reaching 2.5% by January 2019, to withstand future periods of stress, bringing the total common equity requirement to 7%. The Tier 1 capital requirement
will also be increased from 4% to 6%, resulting in a total requirement of 8.5% when combined with the above-mentioned conservation buffer. The total capital requirement remains at the existing level of 8% but will increase to 10.5% by January 2019
due to the capital conservation buffer. Furthermore, a countercyclical buffer within a range of 0% to 2.5% of common equity or other fully loss-absorbing capital has been implemented according to national circumstances. The GHOS also agreed on
transitional arrangements for implementing the new requirements.

In addition to the above-mentioned minimum capital
requirements and capital buffer requirements under Basel III, organizations identified by the FSB as G-SIFIs, which as of November 2014 and 2015 included us, are required to maintain an additional 1% to 2.5% of Common Equity Tier 1 capital as a
percentage of risk-weighted assets based on the organizations size, interconnectedness, substitutability, complexity and cross-jurisdictional activity as determined by the FSB. The amount of G-SIFI capital surcharge that applies to us based on
the FSBs determination as of November 2014 and 2015 will be 1% of risk-weighted assets when the requirements are fully applied from 2019. Under the phase-in arrangement of the G-SIFI capital surcharge requirement, we are currently required to
maintain 0.25% of Common Equity Tier 1 capital as a percentage of risk-weighted assets.

To reflect the Basel III framework,
the FSA changed its capital adequacy guidelines. Under the FSA capital adequacy guidelines, the new capital requirements are being phased in from March 31, 2013 through March 31, 2019. The minimum Common Equity Tier 1 capital requirement and Tier 1
capital requirement has been 4.5% and 6%, respectively since March, 2015. The capital conservation buffer, countercyclical buffer and the G-SIFI capital surcharge are being phased in from March 31, 2016 under the FSA capital adequacy guidelines.

In March 2015, the FSA published its leverage ratio guidelines which have been applied from March 31, 2015 to help ensure
broad and adequate capture of both on- and off-balance sheet sources of leverage for internationally active banks. The FSAs leverage ratio guidelines are based on the text of the leverage ratio



111



---

##### Table of Contents

framework and disclosure requirements issued by the BCBS in January 2014. Under the text of the leverage ratio framework, the BCBS indicated the minimum leverage ratio as 3% and have continued
monitoring banks leverage ratio data in order to assess whether the design and calibration of a minimum leverage ratio of 3% is appropriate from January 1, 2013 to January 1, 2017. Any final adjustments to the definition and calibration of the
leverage ratio were scheduled to be made by the BCBS by 2017, with a view to migrate to a Pillar 1 (minimum capital requirement) treatment on January 1, 2018, based on appropriate review and calibration. For further information, see Item 4.B.
Business OverviewRegulations in JapanRegulations Regarding Capital Adequacy and LiquidityLeverage Ratio.

The table below presents our total risk-weighted capital ratio, total capital, and risk-weighted assets under Japanese GAAP at March 31, 2016, based on the Basel III rules.



|                                                                                          |  |                                  |          |  
|----------------------------------------------------------------------------------------- |  | -------------------------------- | -------- | -
|                                                                                          |  | At March 31, 2016                |         
|                                                                                          |  | (In billions, exceptpercentages) |         
|Total risk-weighted capital ratio (consolidated)                                          |  |                                  | 17.02    | %
|Tier 1 risk-weighted capital ratio (consolidated)                                         |  |                                  | 13.68    | %
|Common Equity Tier 1 risk-weighted capital ratio (consolidated)                           |  |                                  | 11.81    | %
|Total capital (Common Equity Tier 1 capital + Additional Tier 1 capital + Tier 2 capital) |  | ¥                                | 11,235.9 |  
|Tier 1 capital (Common Equity Tier 1 capital + Additional Tier 1 capital)                 |  |                                  | 9,031.7  |  
|Common Equity Tier 1 capital                                                              |  |                                  | 7,796.5  |  
|Risk-weighted assets                                                                      |  |                                  | 66,011.6 |  
|The amount of minimum capital requirements                                                |  |                                  | 5,280.9  |  
|                                                                                          | 
|Leverage ratio                                                                            |  |                                  | 4.61     | %

Common Equity Tier 1 capital consists primarily of capital stock, capital surplus and retained earnings
relating to common shares, and minority interests that meet the criteria set forth in the FSA capital adequacy guidelines for inclusion in Common Equity Tier 1 capital.

Minority interests arising from the issue of common shares by a fully consolidated subsidiary of a bank may receive recognition in Common Equity Tier 1 capital only if: (1) the instrument giving rise to
the minority interest would, if issued by the bank, meet all of the criteria set forth in the FSA capital adequacy guidelines for classification as common shares for regulatory capital purposes; and (2) the subsidiary that issued the instrument is
itself a bank or other financial institution subject to similar capital adequacy guidelines.

Minority interests that will no
longer qualify as Common Equity Tier 1 capital, additional Tier 1 capital, or Tier 2 capital under Basel III are being phased out beginning March 31, 2014 by increments of 20% and will be fully phased out by March 31, 2018.

Regulatory adjustments such as goodwill and other intangibles, deferred tax assets, investment in the common equity capital of banking
financial and insurance entities and defined benefit pension fund assets and liabilities are to be applied mainly to the calculation of Common Equity Tier 1 capital in the form of a deduction. Such regulatory adjustments are being phased in from
March 31, 2014 through March 31, 2018.

Additional Tier 1 capital consists primarily of preferred securities and perpetual
subordinated bonds.

Tier 2 capital consists primarily of subordinated debt securities.

Capital instruments such as preferred securities and subordinated debt issued on or after March 31, 2013 must meet the new requirements
to be included in regulatory capital. Capital instruments issued prior to March 31, 2013 that do not meet the requirements set forth in the FSA capital adequacy guidelines no longer qualify as additional Tier 1 or Tier 2 capital. However, if
those capital instruments meet the requirements for transitional arrangements set forth in such guidelines, they can qualify as additional Tier 1 or Tier 2 capital



112



---

##### Table of Contents

during the phase-out period beginning March 31, 2013. The remaining balance of those non-qualifying capital instruments recognized as additional Tier 1 or
Tier 2 capital will be reduced in annual 10% increments and be fully phased out by March 31, 2022.

At March 31, 2016, our
consolidated total capital was ¥11,236 billion, Tier 1 capital was ¥9,032 billion, and Common Equity Tier 1 capital was ¥7,797 billion. Our total risk-weighted assets at March 31, 2016 were ¥66,012 billion.

On a consolidated basis, our total risk-weighted capital ratio was 17.02%, Tier 1 risk-weighted capital ratio was 13.68%, Common Equity
Tier 1 risk-weighted capital ratio was 11.81% and leverage ratio was 4.61% at March 31, 2016.

Our capital position and the
Banks capital position depend in part on the fair market value of our investment securities portfolio, since unrealized gains and losses are included in the amount of regulatory capital. At March 31, 2013, unrealized gains and losses were
counted as Tier 2 capital and Additional Tier 1 capital, respectively, but started to be counted as Common Equity Tier 1 capital from March 31, 2014 by increments of 20% and will be fully counted as Common Equity Tier 1 capital from March 31, 2018.
Since our other securities (including money held in trust) with a readily ascertainable market value included unrealized gains and losses, substantial fluctuations in the Japanese stock markets may affect our capital position and the capital
position of the Bank.

In addition, our capital position and the Banks capital position would be negatively affected if
deferred tax assets cannot be recognized. Under Japanese GAAP, a company will lose its ability to recognize deferred tax assets if, in principle, it has substantial amounts of negative annual taxable income for each of past three consecutive years
and current fiscal year, and is expected to have significant negative taxable income in the following fiscal year.

Set forth
below are tables of risk-weighted capital ratios of the Bank at March 31, 2016 on a consolidated and nonconsolidated basis.



|                                                                                          |  |                                  |          |  
|----------------------------------------------------------------------------------------- |  | -------------------------------- | -------- | -
|                                                                                          |  | At March 31, 2016                |         
|                                                                                          |  | (In billions, exceptpercentages) |         
|Total risk-weighted capital ratio (consolidated)                                          |  |                                  | 18.19    | %
|Tier 1 risk-weighted capital ratio (consolidated)                                         |  |                                  | 14.58    | %
|Common Equity Tier 1 risk-weighted capital ratio (consolidated)                           |  |                                  | 13.04    | %
|Total capital (Common Equity Tier 1 capital + Additional Tier 1 capital + Tier 2 capital) |  | ¥                                | 10,475.6 |  
|Tier 1 capital (Common Equity Tier 1 capital + Additional Tier 1 capital)                 |  |                                  | 8,396.6  |  
|Common Equity Tier 1 capital                                                              |  |                                  | 7,507.2  |  
|Risk-weighted assets                                                                      |  |                                  | 57,558.1 |  
|The amount of minimum capital requirements                                                |  |                                  | 4,604.6  |  
|                                                                                          | 
|Leverage ratio                                                                            |  |                                  | 4.43     | %



|                                                                                          |  |                                  |          |  
|----------------------------------------------------------------------------------------- |  | -------------------------------- | -------- | -
|                                                                                          |  | At March 31, 2016                |         
|                                                                                          |  | (In billions, exceptpercentages) |         
|Total risk-weighted capital ratio (nonconsolidated)                                       |  |                                  | 19.47    | %
|Tier 1 risk-weighted capital ratio (nonconsolidated)                                      |  |                                  | 15.29    | %
|Common Equity Tier 1 risk-weighted capital ratio (nonconsolidated)                        |  |                                  | 13.44    | %
|Total capital (Common Equity Tier 1 capital + Additional Tier 1 capital + Tier 2 capital) |  | ¥                                | 9,706.7  |  
|Tier 1 capital (Common Equity Tier 1 capital + Additional Tier 1 capital)                 |  |                                  | 7,619.5  |  
|Common Equity Tier 1 capital                                                              |  |                                  | 6,701.7  |  
|Risk-weighted assets                                                                      |  |                                  | 49,829.2 |  
|The amount of minimum capital requirements                                                |  |                                  | 3,986.3  |  



113



---

##### Table of Contents

Our securities subsidiaries in Japan, SMBC Nikko Securities and SMBC Friend Securities, are
also subject to capital adequacy requirements under the FIEA described in Item 4.B. Business OverviewRegulations in JapanRegulations Regarding Capital Adequacy and Liquidity. At March 31, 2016, the capital adequacy ratios
were 395.9% for SMBC Nikko Securities and 1,042.4% for SMBC Friend Securities, and sufficiently above the 140%, below which level they would be required to file daily reports with the Commissioner of the FSA.

5.C.    RESEARCH, DEVELOPMENT, PATENTS AND LICENSES

We did not conduct any significant research and development activities for the fiscal year ended March 31, 2016. However, there are
certain research and development activities conducted by subsidiaries in charge of systems development and information processing for our information system infrastructure.

5.D.    TREND INFORMATION

Our trend information is contained elsewhere in this annual report, including but not limited to Item 4.B. Business
Overview, and A. Operating Results, and B. Liquidity and Capital Resources in this Item.

5.E.    OFF-BALANCE SHEET ARRANGEMENTS

To meet our customers financing needs, we engage in various types of off-balance sheet arrangements in the ordinary course of business.

Our arrangements include loan commitments, financial guarantees and other credit-related contingent liabilities. Loan commitment
contracts on overdrafts and loans are agreements to lend up to a prescribed amount to customers, as long as there is no violation of any condition established in the contracts. Financial guarantees are contracts that require the issuer to make
specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of the debt instrument. Other credit-related contingent liabilities include performance bonds,
which are contracts that provide compensation if another party fails to perform the contractual obligation.

The table below
shows the nominal amounts of undrawn loan commitments, and financial guarantees and other credit-related contingent liabilities at March 31, 2016 and 2015.



|                                                                     |  |               |            |  |      |   |            | 
|-------------------------------------------------------------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                                                                     |  | At March 31,  |           
|                                                                     |  | 2016          |            |  | 2015 |  
|                                                                     |  | (In millions) |           
|Loan commitments                                                     |  | ¥             | 58,026,597 |  |      | ¥ | 53,665,583 | 
|Financial guarantees and other credit-related contingent liabilities |  |               | 7,349,903  |  |      |   | 7,076,536  | 
|                                                                     |  |               |            |  |      |   |            | 
|Total                                                                |  | ¥             | 65,376,500 |  |      | ¥ | 60,742,119 | 
|                                                                     |  |               |            |  |      |   |            | 

The nominal amounts of these off-balance sheet instruments generally represent the maximum potential
amounts of future payments without consideration of possible recoveries under recourse provisions or from collateral held. For example, since many of these loan commitments are expected to expire without being drawn down, the total amount of unused
commitments does not necessarily represent an actual future cash flow requirement. Many of these loan commitments include clauses under which we can reject an application from customers or reduce the contract amounts in cases where economic
conditions change, we need to secure claims, or some other significant event occurs. In addition, we may request the customers to pledge collateral such as premises and securities at the time of the contracts, and take necessary measures such as
monitoring customers financial positions, revising contracts when the need arises and securing claims after the contracts are made. We regularly review the credit quality of the customer based on our risk management system as set forth in
Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk and Note 45 Financial Risk Management to our consolidated financial statements included elsewhere in this annual report.



114



---

##### Table of Contents

In addition to the above-mentioned off-balance sheet arrangements, some of the Groups
off-balance sheet arrangements are related to activities of structured entities. For further information, see Note 48 Structured Entities to our consolidated financial statements included elsewhere in this annual report.

5.F.    TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

In the normal course of business, we enter into contractual obligations that require future cash payments. The following table sets forth
a summary of our contractual cash obligations at March 31, 2016.



|                                   |  |                        |            |  |                                |   |           |                                  |  |   |                     |  |  |          |           |  |  |   |            | 
|---------------------------------- |  | ---------------------- | ---------- |  | ------------------------------ | - | --------- | -------------------------------- |  | - | ------------------- |  |  | -------- | --------- |  |  | - | ---------- | 
|                                   |  | At March 31, 2016      |           
|                                   |  | Due
inone year or less |            |  | Due fromone year
tothree years |   |           | Due
fromthree years tofive years |  |   | Due afterfive years |  |  | Total(1) |          
|                                   |  | (In millions)          |           
|Time deposits                      |  | ¥                      | 24,145,343 |  |                                | ¥ | 3,332,606 |                                  |  | ¥ | 738,900             |  |  | ¥        | 903,879   |  |  | ¥ | 29,120,728 | 
|Negotiable certificate of deposits |  |                        | 13,729,266 |  |                                |   | 426,912   |                                  |  |   | 90,529              |  |  |          | 3,128     |  |  |   | 14,249,835 | 
|Borrowings                         |  |                        | 5,921,898  |  |                                |   | 829,855   |                                  |  |   | 757,557             |  |  |          | 2,297,931 |  |  |   | 9,807,241  | 
|Debt securities in issue           |  |                        | 5,147,473  |  |                                |   | 1,693,961 |                                  |  |   | 1,504,307           |  |  |          | 2,503,234 |  |  |   | 10,848,975 | 
|Capital (finance) lease obligation |  |                        | 24,373     |  |                                |   | 42,598    |                                  |  |   | 33,324              |  |  |          | 9,710     |  |  |   | 110,005    | 
|Operating lease obligation         |  |                        | 42,254     |  |                                |   | 62,859    |                                  |  |   | 41,940              |  |  |          | 108,603   |  |  |   | 255,656    | 
|Purchase obligation(2)             |  |                        | 195,285    |  |                                |   | 362,177   |                                  |  |   | 1,203,560           |  |  |          | 1,119,385 |  |  |   | 2,880,407  | 
|                                   |  |                        |            |  |                                |   |           |                                  |  |   |                     |  |  |          |           |  |  |   |            | 
|Total                              |  | ¥                      | 49,205,892 |  |                                | ¥ | 6,750,968 |                                  |  | ¥ | 4,370,117           |  |  | ¥        | 6,945,870 |  |  | ¥ | 67,272,847 | 
|                                   |  |                        |            |  |                                |   |           |                                  |  |   |                     |  |  |          |           |  |  |   |            | 



|(1) | The amount of interest on debt instruments is not included in the maturity table above due to its insignificance.
|--- | -----------------------------------------------------------------------------------------------------------------

|(2) | Purchase obligation in the above table includes the contractual commitments to purchase aircraft to be leased to customers and to purchase goods or services of
construction and information technology that are binding on us for the payment of more than ¥100 million. The contractual commitments to purchase aircraft are based upon fixed price agreements with the manufacturers, an element of which are
adjusted for inflation and include price escalation formulas, but are also subject to agreed price concessions where applicable.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.G.    SAFE HARBOR

See the
discussion under Cautionary Statement Regarding Forward-Looking Statements.



|Item 6. | Directors, Senior Management and Employees
|------- | ------------------------------------------

6.A.    DIRECTORS AND SENIOR MANAGEMENT

Directors, Senior Management and Corporate Auditors

Under our corporate governance system, our board of directors is responsible for supervising the business operations of the Group as a whole, and has established four board committees to enhance the
effectiveness of governance by our board of directors in exercising its management responsibilities. Those committees are:



| |  |  | the risk committee;
| | - |  | -------------------



| |  |  | the auditing committee;
| | - |  | -----------------------



| |  |  | the compensation committee; and
| | - |  | -------------------------------



| |  |  | the nominating committee.
| | - |  | -------------------------

For more information, see Item 6.C. Board Practices.

Our board of
directors is comprised of fourteen directors, five of whom are outside directors as defined under the Companies Act, and our board of corporate auditors is comprised of six corporate auditors, three of whom are outside corporate auditors as defined
under the Companies Act.



115



---

##### Table of Contents

At June 29, 2016, the following persons held the indicated positions with us:



|                                 |  |                                                                            |  |                                                                                 |  |                                                                |  |                                                                                                                 
|-------------------------------- |  | -------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------- |  | -------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|Name (Date of birth)             |  | Current positions and
principal outside positions                          |  | Business experience                                                             |  | Expiration ofcurrent term asdirector orcorporate auditor      
|Masayuki Oku(December 2, 1944)   |  | Chairman of the Board and Director of the Company                          |  | April 1968                                                                      |  | Joined Sumitomo Bank                                           |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                                 |  | June 1994                                                                  |  | Director of Sumitomo Bank                                                       | 
|                                 |  | November 1998                                                              |  | Managing Director of Sumitomo Bank                                              | 
|                                 |  | June 1999                                                                  |  | Managing Director and Managing Executive Officer of Sumitomo Bank               | 
|                                 |  | January 2001                                                               |  | Senior Managing Director and Senior Managing Executive Officer of Sumitomo Bank | 
|                                 |  | April 2001                                                                 |  | Senior Managing Director and Senior Managing Executive Officer of the Bank      | 
|                                 |  | December 2002                                                              |  | Resigned as Director of the Bank                                                | 
|                                 |  | December 2002                                                              |  | Senior Managing Director of the Company                                         | 
|                                 |  |                                                                            |  | June 2003                                                                       |  | Retired as Director of the Company                             | 
|                                 |  |                                                                            |  |                                                                                 |  | Deputy President and Executive Officer of the Bank             | 
|                                 |  |                                                                            |  | June 2005                                                                       |  | Chairman of the Board and Director of the Company (to present) | 
|                                 |  |                                                                            |  |                                                                                 |  | President and Chief Executive Officer of the Bank              | 
|                                 |  |                                                                            |  | April 2011                                                                      |  | Resigned as Director of the Bank                               |  |                                                                                                                 
|                                 |  |                                                                            |  |                                                                                
|Koichi Miyata(November 16, 1953) |  | President and Representative Director of the Company
 Director of the Bank |  | April 1976                                                                      |  | Joined Mitsui Bank                                             |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2018.
|                                 |  | June 2003                                                                  |  | Executive Officer of the Bank                                                   | 
|                                 |  | October 2006                                                               |  | Managing Executive Officer of the Bank                                          | 
|                                 |  | April 2009                                                                 |  | Director and Senior Managing Executive Officer of the Bank                      | 
|                                 |  | April 2010                                                                 |  | Senior Managing Executive Officer of the Company                                | 
|                                 |  | June 2010                                                                  |  | Director of the Company                                                         | 
|                                 |  | April 2011                                                                 |  | Director and President of the Company (to present)                              | 
|                                 |  |                                                                            |  | Director of the Bank (to present)                                               | 
|                                 |  |                                                                            |  |                                                                                
|Takeshi Kunibe(March 8, 1954)    |  | Director of the Company
 President and Chief Executive Officer of the
Bank |  | April 1976                                                                      |  | Joined Sumitomo Bank                                           |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                                 |  | June 2003                                                                  |  | Executive Officer of the Bank                                                   | 
|                                 |  | October 2006                                                               |  | Managing Executive Officer of the Bank                                          | 
|                                 |  | April 2007                                                                 |  | Managing Executive Officer of the Company                                       | 
|                                 |  | June 2007                                                                  |  | Director of the Company (to present)                                            | 
|                                 |  | April 2009                                                                 |  | Director and Senior Managing Executive Officer of the Bank                      | 
|                                 |  | April 2011                                                                 |  | President and Chief Executive Officer of the Bank (to present)                  | 



116



---

##### Table of Contents

|                            |  |                                                                                                                                                                                                                                                                                                                    |  |                                                                                                 |  |                                                                         |  |                                                                                                                 
|--------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|Name (Date of birth)        |  | Current positions and
principal outside positions                                                                                                                                                                                                                                                                  |  | Business experience                                                                             |  | Expiration ofcurrent term asdirector orcorporate auditor               
|Yujiro Ito(August 3, 1955)  |  | Representative Director of the Company
 Officer in charge of General Affairs
Department and Human Resources Department  Director and Deputy President of the Bank                                                                                                                                                  |  | April 1979                                                                                      |  | Joined Sumitomo Bank                                                    |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                            |  | June 2005                                                                                                                                                                                                                                                                                                          |  | Executive Officer of the Bank                                                                   | 
|                            |  | April 2009                                                                                                                                                                                                                                                                                                         |  | Managing Executive Officer of the Bank                                                          | 
|                            |  | April 2011                                                                                                                                                                                                                                                                                                         |  | Managing Executive Officer of the Company                                                       | 
|                            |  |                                                                                                                                                                                                                                                                                                                    |  | Director and Managing Executive Officer of the Bank                                             | 
|                            |  |                                                                                                                                                                                                                                                                                                                    |  | June 2011                                                                                       |  | Director of the Company (to present)                                    |  |                                                                                                                 
|                            |  |                                                                                                                                                                                                                                                                                                                    |  | April 2012                                                                                      |  | Director and Senior Managing Executive Officer of the Bank              |  |                                                                                                                 
|                            |  |                                                                                                                                                                                                                                                                                                                    |  | April 2014                                                                                      |  | Director and Deputy President of the Bank (to present)                  |  |                                                                                                                 
|                            |  |                                                                                                                                                                                                                                                                                                                    |  |                                                                                                
|Kozo Ogino(May 9, 1958)     |  | Director of the Company
 Officer in charge of
Audit Department  Director
and Senior Managing Executive Officer of the Bank                                                                                                                                                                                         |  | April 1981                                                                                      |  | Joined Mitsui Bank                                                      |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                            |  | April 2010                                                                                                                                                                                                                                                                                                         |  | Executive Officer of the Bank                                                                   | 
|                            |  | April 2011                                                                                                                                                                                                                                                                                                         |  | Managing Executive Officer of the Bank                                                          | 
|                            |  | April 2013                                                                                                                                                                                                                                                                                                         |  | Managing Executive Officer of the Company                                                       | 
|                            |  | June 2013                                                                                                                                                                                                                                                                                                          |  | Director of the Company (to present)                                                            | 
|                            |  | April 2014                                                                                                                                                                                                                                                                                                         |  | Director and Senior Managing Executive Officer of the Bank (to present)                         | 
|                            |  |                                                                                                                                                                                                                                                                                                                    |  |                                                                                                
|Jun Ohta(February 12, 1958) |  | Director of the Company
 Officer in charge of Public Relations
Department, Corporate Planning Department, Financial Accounting Department, Subsidiaries & Affiliates Department, IT Innovation Department and Transaction Business Planning Department
 Director and Senior Managing Executive
Officer of the Bank |  | April 1982                                                                                      |  | Joined Sumitomo Bank                                                    |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2018.
|                            |  | April 2009                                                                                                                                                                                                                                                                                                         |  | Executive Officer of the Bank                                                                   | 
|                            |  | May 2009                                                                                                                                                                                                                                                                                                           |  | General Manager of Investment Banking Planning Department of the Company                        | 
|                            |  | April 2012                                                                                                                                                                                                                                                                                                         |  | Managing Executive Officer of the Bank                                                          | 
|                            |  | April 2013                                                                                                                                                                                                                                                                                                         |  | Managing Executive Officer of the Company                                                       | 
|                            |  | April 2014                                                                                                                                                                                                                                                                                                         |  | Senior Managing Executive Officer of the Company 
Senior Managing Executive Officer of the Bank | 
|                            |  | June 2014                                                                                                                                                                                                                                                                                                          |  | Director of the Company (to present)                                                            |  |                                                                        
|                            |  |                                                                                                                                                                                                                                                                                                                    |  | April 2015                                                                                      |  | Director and Senior Managing Executive Officer of the Bank (to present) |  |                                                                                                                 



117



---

##### Table of Contents

|                                   |  |                                                                                                                                                                 |            |                                                                                                                                               |                                           |                                                          |  |                                                                                                                 
|---------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | --------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------- | -------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|Name (Date of birth)               |  | Current positions and
principal outside positions                                                                                                               |            | Business experience                                                                                                                           |                                           | Expiration ofcurrent term asdirector orcorporate auditor
|Katsunori Tanizaki(April 12, 1957) |  | Director of the Company
 Officer in charge of IT Planning Department
and Data Management Department 
Director and Senior Managing Executive Officer of the Bank |            | April 1982                                                                                                                                    |                                           | Joined Sumitomo Bank                                     |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                                   |  | April 2010                                                                                                                                                      |            | Executive Officer of the Bank                                                                                                                 |                                          
|                                   |  | April 2011                                                                                                                                                      |            | General Manager of IT Planning Department of the Company                                                                                      |                                          
|                                   |  | April 2013                                                                                                                                                      |            | Managing Executive Officer of the Bank                                                                                                        |                                          
|                                   |  | April 2015                                                                                                                                                      |            | Senior Managing Executive Officer of the Company                                                                                              |                                          
|                                   |  |                                                                                                                                                                 |            | Director and Senior Managing Executive Officer of the Bank (to present)                                                                       |                                          
|                                   |  | June 2015                                                                                                                                                       |            | Director of the Company (to present)                                                                                                          |                                           |                                                         
|                                   |  |                                                                                                                                                                 |            |                                                                                                                                              
|Koichi Noda(May 11, 1960)          |  | Director of the Company
 Officer in charge of Corporate Risk
Management Department  Director
and Senior Managing Executive Officer of the Bank                  |            | April 1983                                                                                                                                    |                                           | Joined Sumitomo Bank                                     |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2018.
|                                   |  | April 2011                                                                                                                                                      |            | Executive Officer of the Bank                                                                                                                 |                                          
|                                   |  | April 2014                                                                                                                                                      |            | Managing Executive Officer of the Bank                                                                                                        |                                          
|                                   |  | April 2016                                                                                                                                                      |            | Senior Managing Executive Officer of the Company                                                                                              |                                          
|                                   |  |                                                                                                                                                                 |            | Director and Senior Managing Executive Officer of the Bank (to present)                                                                       |                                          
|                                   |  | June 2016                                                                                                                                                       |            | Director of the Company (to present)                                                                                                          |                                           |                                                         
|                                   |  |                                                                                                                                                                 |            |                                                                                                                                              
|Tetsuya Kubo(September 24, 1953)   |  | Director of the Company
 Representative Director and Chairman of the
Board of SMBC Nikko Securities Inc. (SMBC Nikko Securities)                              |            | April 1976                                                                                                                                    |                                           | Joined Sumitomo Bank                                     |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2018.
|                                   |  | June 2003                                                                                                                                                       |            | Executive Officer of the Bank                                                                                                                 |                                          
|                                   |  | July 2006                                                                                                                                                       |            | Managing Executive Officer of the Bank                                                                                                        |                                          
|                                   |  |                                                                                                                                                                 | April 2008 |                                                                                                                                               | Managing Executive Officer of the Company |                                                         
|                                   |  | April 2009                                                                                                                                                      |            | Senior Managing Executive Officer of the Company 
Director and Senior Managing Executive Officer of the Bank                                  |                                          
|                                   |  | April 2011                                                                                                                                                      |            | Deputy President and Executive Officer of the Company 
Director and Deputy President of the Bank 
Executive Director of SMBC Nikko Securities |                                          
|                                   |  | June 2011                                                                                                                                                       |            | Director of the Company                                                                                                                       |                                          
|                                   |  | March 2013                                                                                                                                                      |            | Resigned as Director of the Company 
Resigned as Director of the Bank                                                                         |                                          
|                                   |  | April 2013                                                                                                                                                      |            | Representative Director, President & CEO of SMBC Nikko Securities                                                                             |                                          
|                                   |  | April 2016                                                                                                                                                      |            | Representative Director and Chairman of the Board of SMBC Nikko Securities (to present)                                                       |                                          
|                                   |  | June 2016                                                                                                                                                       |            | Director of the Company (to present)                                                                                                          |                                          



118



---

##### Table of Contents

|                                          |  |                                                   |  |                                                                                                    |  |                                                                                                                             |  |                                                                                                                 
|----------------------------------------- |  | ------------------------------------------------- |  | -------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|Name (Date of birth)                      |  | Current positions and
principal outside positions |  | Business experience                                                                                |  | Expiration ofcurrent term asdirector orcorporate auditor                                                                   
|Yoshinori Yokoyama(1)(September 16,
1942) |  | Director of the Company                           |  | April 1966                                                                                         |  | Joined Mayekawa Kunio Associates, Architects & Engineers                                                                    |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2018.
|                                          |  |                                                   |  | September 1973                                                                                     |  | Joined Davis Brody & Associates                                                                                             | 
|                                          |  |                                                   |  | September 1975                                                                                     |  | Joined McKinsey & Company, Inc.                                                                                             | 
|                                          |  |                                                   |  | July 1987                                                                                          |  | Director (Senior Partner) of McKinsey & Company, Inc.                                                                       | 
|                                          |  |                                                   |  | June 2002                                                                                          |  | Retired from McKinsey & Company, Inc.                                                                                       |  |                                                                                                                 
|                                          |  |                                                   |  | June 2002                                                                                          |  | Director of ORIX Corporation                                                                                                |  |                                                                                                                 
|                                          |  |                                                   |  | April 2003                                                                                         |  | Corporate Auditor of Industrial Revitalization Corporation of Japan                                                         |  |                                                                                                                 
|                                          |  |                                                   |  | June 2006                                                                                          |  | Director of the Company (to present) 
Director of the Bank                                                                  |  |                                                                                                                 
|                                          |  |                                                   |  | June 2015                                                                                          |  | Resigned as Director of the Bank                                                                                            |  |                                                                                                                 
|Kuniaki Nomura(1)(June 13, 1945)          |  | Director of the Company                           |  | April 1970                                                                                         |  | Registered as an attorney at law (to present) 
Attorney at law at Yanagida Law Office (currently, Yanagida & Partners)      |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                                          |  |                                                   |  | June 2009                                                                                          |  | Director of the Company (to present) 
Director of the Bank                                                                  | 
|                                          |  |                                                   |  | June 2009                                                                                          |  | Attorney at law at Nomura & Partners (to present)                                                                           | 
|                                          |  |                                                   |  | June 2015                                                                                          |  | Retired as Director of the Bank                                                                                             | 
|Arthur M. Mitchell(1)(July 23,
1947)      |  | Director of the Company                           |  | July 1976                                                                                          |  | Registered as an attorney at law, admitted in New York, the U.S.A. (to present)                                             |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                                          |  |                                                   |  | January 2003                                                                                       |  | General Counsel of the Asian Development Bank                                                                               | 
|                                          |  |                                                   |  | September 2007                                                                                     |  | Joined White & Case LLP                                                                                                     | 
|                                          |  |                                                   |  | January 2008                                                                                       |  | Registered as Foreign Attorney in Japan (to present) 
Registered Foreign Attorney in Japan at White & Case LLP (to present) | 
|                                          |  |                                                   |  | June 2015                                                                                          |  | Director of the Company (to present)                                                                                        | 
|Masaharu Kohno(1)(December 21,
1948)      |  | Director of the Company                           |  | April 1973                                                                                         |  | Joined Ministry of Foreign Affairs of Japan                                                                                 |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                                          |  | August 2005                                       |  | Director-General of Foreign Policy Bureau in Ministry of Foreign Affairs of Japan                  | 
|                                          |  | January 2007                                      |  | Deputy Minister for Foreign Affairs (in charge of economy) of Ministry of Foreign Affairs of Japan | 
|                                          |  | February 2009                                     |  | Ambassador of Japan to Russia                                                                      | 
|                                          |  | May 2009                                          |  | Ambassador of Japan to Russia, Armenia, Turkmenistan and Belarus                                   | 
|                                          |  | March 2011                                        |  | Ambassador of Japan to Italy                                                                       | 
|                                          |  | May 2011                                          |  | Ambassador of Japan to Italy, Albania, San Marino and Malta                                        | 
|                                          |  |                                                   |  | September 2014                                                                                     |  | Retired from office                                                                                                         |  |                                                                                                                 
|                                          |  |                                                   |  | June 2015                                                                                          |  | Director of the Company (to present)                                                                                        |  |                                                                                                                 



119



---

##### Table of Contents

|                                       |  |                                                                                                                                                                                                                                                                                                        |            |                                                                                           |                                                                 |                                                                                                                                                                 |  |                                                                                                                 
|-------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------- | ----------------------------------------------------------------------------------------- | --------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|Name (Date of birth)                   |  | Current positions and
principal outside positions                                                                                                                                                                                                                                                      |            | Business experience                                                                       |                                                                 | Expiration ofcurrent term asdirector orcorporate auditor                                                                                                       
|Eriko Sakurai(1)(November 16,
1960)    |  | Director of the Company 
Chairman and Chief Executive Officer of Dow Corning Toray Co., Ltd.
 Regional President -Japan/Korea of Dow
Corning Corporation  Chairman and
Representative Director of Dow Corning Korea Ltd.  President and Representative Director of Dow Corning Holding Japan Co., Ltd. |            | June 1987                                                                                 |                                                                 | Joined Dow Corning Corporation                                                                                                                                  |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                                       |  | May 2008                                                                                                                                                                                                                                                                                               |            | Director of Dow Corning Toray Co., Ltd.                                                   |                                                                
|                                       |  | March 2009                                                                                                                                                                                                                                                                                             |            | Chairman and Chief Executive Officer of Dow Corning Toray Co., Ltd. (to present)          |                                                                
|                                       |  | May 2011                                                                                                                                                                                                                                                                                               |            | Regional President -Japan/Korea of Dow Corning Corporation (to present)                   |                                                                
|                                       |  | December 2011                                                                                                                                                                                                                                                                                          |            | Chairman and Representative Director of Dow Corning Korea Ltd. (to present)               |                                                                
|                                       |  | February 2015                                                                                                                                                                                                                                                                                          |            | President and Representative Director of Dow Corning Holding Japan Co., Ltd. (to present) |                                                                
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | June 2015                                                                                 |                                                                 | Director of the Company (to present)                                                                                                                            |  |                                                                                                                 
|Toshiyuki Teramoto(September 15, 1958) |  | Corporate Auditor of the Company
 Corporate Auditor of the
Bank                                                                                                                                                                                                                                        |            | April 1981                                                                                |                                                                 | Joined Mitsui Bank                                                                                                                                              |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2020.
|                                       |  |                                                                                                                                                                                                                                                                                                        | April 2008 |                                                                                           | Executive Officer of the Bank                                   |                                                                                                                                                                
|                                       |  |                                                                                                                                                                                                                                                                                                        | April 2011 |                                                                                           | Managing Executive Officer of the Bank                          |                                                                                                                                                                
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | April 2014                                                                                |                                                                 | Director and Senior Managing Executive Officer of the Bank                                                                                                      | 
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | April 2015                                                                                |                                                                 | Senior Managing Executive Officer of the Company                                                                                                                | 
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | June 2015                                                                                 |                                                                 | Director of the Company                                                                                                                                         | 
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | April 2016                                                                                |                                                                 | Director of the Bank                                                                                                                                            | 
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | June 2016                                                                                 |                                                                 | Resigned as Director of the Company 
Retired as Director of the Bank 
Corporate Auditor of the Company (to present) 
Corporate Auditor of the Bank (to present) | 
|Kazuhiko Nakao(July 1, 1959)           |  | Corporate Auditor of the Company                                                                                                                                                                                                                                                                       |            | April 1982                                                                                |                                                                 | Joined Taiyo Kobe Bank                                                                                                                                          |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2018.
|                                       |  |                                                                                                                                                                                                                                                                                                        | April 2010 |                                                                                           | General Manager of Himeji Corporate Business Office of the Bank |                                                                                                                                                                
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | April 2011                                                                                |                                                                 | Senior General Manager of Himeji Corporate Business Office of the Bank                                                                                          | 
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | April 2012                                                                                |                                                                 | Co-General Manager of General Affairs Department of the Company
 Senior General Manager of Administrative Services Department of the Bank                       | 
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | April 2014                                                                                |                                                                 | Senior General Manager of Head Office of the Bank                                                                                                               | 
|                                       |  |                                                                                                                                                                                                                                                                                                        |            | June 2014                                                                                 |                                                                 | Corporate Auditor of the Company (to present)                                                                                                                   |  |                                                                                                                 



120



---

##### Table of Contents

|                               |  |                                                                 |            |                                                                                         |                                                                                    |                                                                                               |  |                                                                                                                 
|------------------------------ |  | --------------------------------------------------------------- | ---------- | --------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|Name (Date of birth)           |  | Current positions and
principal outside positions               |            | Business experience                                                                     |                                                                                    | Expiration ofcurrent term asdirector orcorporate auditor                                     
|Toru Mikami(August 27, 1960)   |  | Corporate Auditor of the Company                                |            | April 1984                                                                              |                                                                                    | Joined Sumitomo Bank                                                                          |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2019.
|                               |  | April 2006                                                      |            | General Manager of Legal Department of the Bank                                         |                                                                                   
|                               |  | April 2013                                                      |            | Co-General Manager of General Affairs Department of the Company                         |                                                                                   
|                               |  | April 2015                                                      |            | Senior Manager of Head Office of the Bank                                               |                                                                                    |                                                                                              
|                               |  | June 2015                                                       |            | Corporate Auditor of the Company (to present)                                           |                                                                                    |                                                                                              
|Ikuo Uno(2)(January 4, 1935)   |  | Corporate Auditor of the Company                                |            | March 1959                                                                              |                                                                                    | Joined Nippon Life Insurance Company                                                          |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                               |  | Executive Advisor to the Board of Nippon Life Insurance Company |            | April 1997                                                                              |                                                                                    | President of Nippon Life Insurance Company                                                    | 
|                               |  |                                                                 | April 2005 |                                                                                         | Chairman of the Board and Representative Director of Nippon Life Insurance Company |                                                                                              
|                               |  |                                                                 | June 2005  |                                                                                         | Corporate Auditor of the Company (to present)                                      |                                                                                              
|                               |  |                                                                 | June 2006  |                                                                                         | Corporate Auditor of the Bank                                                      |                                                                                              
|                               |  |                                                                 | April 2011 |                                                                                         | Director and Executive Advisor to the Board of Nippon Life Insurance Company       |                                                                                              
|                               |  |                                                                 | July 2011  |                                                                                         | Executive Advisor to the Board of Nippon Life Insurance Company                    |                                                                                              
|                               |  |                                                                 | June 2015  |                                                                                         | Resigned as Corporate Auditor of the Bank                                          |                                                                                              
|                               |  |                                                                 | July 2015  |                                                                                         | Executive Advisor to the Board of Nippon Life Insurance Company (to present)       |                                                                                              
|Satoshi Itoh(2)(July 25,
1942) |  | Corporate Auditor of the Company                                |            | January 1967                                                                            |                                                                                    | Joined Tokyo Office of Arthur Andersen & Co.                                                  |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2017.
|                               |  | December 1970                                                   |            | Registered as a certified public accountant (to present)                                |                                                                                   
|                               |  | September 1978                                                  |            | Partner of Arthur Andersen & Co.                                                        |                                                                                   
|                               |  | October 1993                                                    |            | Representative Partner of Asahi & Co. (currently, KPMG AZSA LLC)                        |                                                                                   
|                               |  | August 2001                                                     |            | Retired from Arthur Andersen & Co. 
Retired from Asahi & Co. (currently, KPMG AZSA LLC) |                                                                                   
|                               |  | April 2002                                                      |            | Special Professor at Chuo University Graduate School of International Accounting        |                                                                                   
|                               |  |                                                                 |            | March 2007                                                                              |                                                                                    | Retired as Special Professor from Chuo University Graduate School of International Accounting |  |                                                                                                                 
|                               |  |                                                                 |            | June 2009                                                                               |                                                                                    | Corporate Auditor of the Company (to present) 
Corporate Auditor of the Bank                  | 
|                               |  |                                                                 |            | June 2015                                                                               |                                                                                    | Resigned as Corporate Auditor of the Bank                                                     | 



121



---

##### Table of Contents

|                                 |  |                                                   |  |                     |  |                                                                              |  |                                                                                                                 
|-------------------------------- |  | ------------------------------------------------- |  | ------------------- |  | ---------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|Name (Date of birth)             |  | Current positions and
principal outside positions |  | Business experience |  | Expiration ofcurrent term asdirector orcorporate auditor                    
|Rokuro Tsuruta(2)(June 16, 1943) |  | Corporate Auditor of the Company                  |  | April 1970          |  | Appointed as a Prosecutor at Tokyo District Public Prosecutors Office        |  | At the close of the annual general meeting of shareholders to be held for the fiscal year ending March 31, 2020.
|                                 |  |                                                   |  | April 2005          |  | Superintending Prosecutor of Nagoya High Public Prosecutors Office           | 
|                                 |  |                                                   |  | June 2006           |  | Retired from his position as Prosecutor                                      | 
|                                 |  |                                                   |  | July 2006           |  | Registered as an attorney at law (to present)                                | 
|                                 |  |                                                   |  | October 2006        |  | Professor at Chiba University Law School                                     | 
|                                 |  |                                                   |  | September 2008      |  | Retired from his position as Professor at Chiba University Law School        | 
|                                 |  |                                                   |  | April 2009          |  | Professor at Surugadai University Law School                                 | 
|                                 |  |                                                   |  | March 2012          |  | Retired from his position as Professor at Surugadai University Law School    | 
|                                 |  |                                                   |  | June 2012           |  | Corporate Auditor of the Company (to present) 
Corporate Auditor of the Bank | 
|                                 |  |                                                   |  | June 2015           |  | Resigned as Corporate Auditor of the Bank                                    | 



|(1) | Messrs. and Ms. Yokoyama, Nomura, Mitchell, Kohno and Sakurai satisfy the requirements for an outside director under the Companies Act.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

|(2) | Messrs. Uno, Itoh and Tsuruta satisfy the requirements for an outside corporate auditor under the Companies Act.
|--- | ------------------------------------------------------------------------------------------------------------------

For more information, see Item 6.C. Board Practices.

Familial Relationships

There are no familial relationships between any of
the directors and corporate auditors listed above.

Arrangements and Understandings

There is no arrangement or understanding with any major shareholder, customer, supplier or other party, pursuant to which any of the
directors and corporate auditors listed above were selected as a director or member of corporate auditors.



122



---

##### Table of Contents

6.B.    COMPENSATION

The aggregate amounts of compensation paid by us during the fiscal year ended March 31, 2016 to our directors and to our corporate
auditors were ¥808 million and ¥199 million, respectively.

The following table sets forth the details of individual
compensation, disclosed pursuant to the provision of the FIEA and related ordinance, by SMFG and its subsidiaries in amounts equal to or exceeding ¥100 million during the fiscal year ended March 31, 2016:



|               |  |                  |     |  |         |  |      |               |  |   |              |  |  |       |    |  |  |   |    | 
|-------------- |  | ---------------- | --- |  | ------- |  | ---- | ------------- |  | - | ------------ |  |  | ----- | -- |  |  | - | -- | 
|               |  | Compensation     |    
|Director       |  | Aggregateamount  |     |  | Paid by |  |      | Annual salary |  |   | Stock option |  |  | Bonus |   
|               |  | (In millions)(1) |    
|Masayuki Oku   |  | ¥                | 119 |  |         |  | SMFG |               |  | ¥ | 86           |  |  | ¥     | 10 |  |  | ¥ | 23 | 
|               |  |                  |     |  |         |  | SMBC |               |  |   |             |  |  |       |   |  |  |   |   | 
|Koichi Miyata  |  | ¥                | 126 |  |         |  | SMFG |               |  | ¥ | 70           |  |  | ¥     | 9  |  |  | ¥ | 19 | 
|               |  |                  |     |  |         |  | SMBC |               |  |   | 21           |  |  |       | 1  |  |  |   | 3  | 
|Takeshi Kunibe |  | ¥                | 126 |  |         |  | SMFG |               |  | ¥ | 21           |  |  | ¥     | 1  |  |  | ¥ | 3  | 
|               |  |                  |     |  |         |  | SMBC |               |  |   | 70           |  |  |       | 9  |  |  |   | 19 | 



|(1) | Amounts less than one million yen have been truncated.
|--- | ------------------------------------------------------

Compensation for our directors, including bonuses and incentive stock options, must be approved at our general meeting of shareholders, unless otherwise provided in our articles of incorporation. The
shareholders approval may specify the upper limit of the aggregate amount of compensation or calculation methods, but if compensation includes benefits in kind, the shareholders approval must include the description of such benefits.
Similarly, compensation to our corporate auditors must be approved by our shareholders at our general meeting of shareholders unless otherwise specified in our articles of incorporation. Our articles of incorporation currently do not have such
provisions with respect to compensation for directors and corporate auditors.

Compensation for an individual director and
corporate auditor is determined by our board of directors and by consultation among our corporate auditors, respectively, in accordance with our internal rules and our standard practice of approval at our general meeting of shareholders. To ensure
objectivity in the process of determining such compensation, bonuses and stock options to our board of directors and the board of directors of the Bank, we have formed a compensation committee in which an outside director serves as the chairman of
the committee.

In June 2010, a shareholders resolution was passed at the general meeting of shareholders to introduce a stock
option compensation program to certain directors and corporate auditors in connection with the abolition of their retirement benefit program. Following such resolution, we granted stock options for certain directors, corporate auditors and executive
officers of the Company and the Bank on August 13, 2010. Because the resolution also abolished the retirement benefit program for our corporate directors and auditors, no amounts were set aside for the payment of any retirement benefits for them
during the fiscal year ended March 31, 2016. For additional information, see Item 6.E. Share Ownership or Note 39 Share-Based Payment to our consolidated financial statements included elsewhere in this annual report.

6.C.    BOARD PRACTICES

General

The Companies
Act permits three types of governance systems for large public companies. The first system is for companies with a nominating committee, an audit committee and a compensation committee, and the second one is for companies with an audit and
supervisory committee. The last one is for companies with a board of corporate auditors. We employ the board of corporate auditors governance system. Pursuant to Article 4 of our



123



---

##### Table of Contents

articles of incorporation, we maintain a corporate governance system consisting of a general meeting of shareholders, individual directors, a board of directors, individual corporate auditors, a
board of corporate auditors and an accounting auditor as its primary components.

Our articles of incorporation provide for a
board of directors consisting of not fewer than three directors. We currently have fourteen directors. Our board of directors has ultimate responsibility for the administration of our affairs.

By resolution, our board of directors elects representative directors from the directors who are severally authorized to represent us.
Our board of directors may elect directors with titles (yakutsuki-torishimariyaku), and executive officers with titles (yakutsuki-shikkoyakuin), and may elect or remove executive officers and other important employees by resolution. In
addition, our board of directors may assign or change the designation of the duties of the directors and executive officers by resolution.

Our president executes business affairs in accordance with resolutions adopted by the board of directors. Our deputy presidents, senior managing directors and managing directors assist the president in
the management of our day-to-day operations. Our chairman serves as the chairman of and presides over our board of directors. This is done in order to separate the role of our president, whose responsibility is to exercise overall supervision of our
business activities and other group companies, from the role of our chairman.

The Companies Act requires a resolution of the
board of directors for a company to execute important business strategies, including acquiring and disposing of material assets; borrowing substantial amounts of money; establishing, changing or abolishing branch offices or other material corporate
organizations; issuing bonds; establishing internal control systems; and exempting directors and corporate auditors from liability to the Company in accordance with applicable laws and regulations.

Under the Companies Act, a Company with a Board of Corporate Auditors is not obligated to have any outside directors or to have any
audit, nomination or compensation committees. However, we have five outside directors as part of our efforts to enhance corporate governance. In addition, we have voluntarily established our auditing, risk, compensation and nominating committees to
enhance the effectiveness of our board of directors. To ensure the compliance of our execution of our business operations with legal regulations and generally accepted practices, the outside directors are selected from among experts (including
certified public accountants, lawyers and persons with consulting or business management experience).

Outside
director means a director of any corporation who satisfies all of the following requirements: (a) a person who is not an executive director, executive officer (shikkoyaku), or an employee, including a manager (Executive Director,
etc.), and has not been an Executive Director, etc. of such corporation or any of its subsidiaries for the ten years prior to assuming his/her office; (b) if the person has been a director, accounting advisor or corporate auditor of such
corporation or any of its subsidiaries (excluding a person who has been an Executive Director, etc.) at any time within the ten years prior to assuming his/her office, a person who has not been an Executive Director, etc. of such corporation or any
of its subsidiaries for the ten years prior to assuming his/her office as director, accounting advisor, or corporate auditor; (c) a person who is not a parent corporation or any entity which is prescribed by the applicable Ordinance of the Ministry
of Justice as a person who controls the management of the corporation (excluding entities who are juridical persons) (parent corporation, etc.) of such corporation (limited to a natural person) or director or executive officer
(shikkoyaku), or other employee, including a manager, of a parent corporation, etc.; (d) a person who is not an Executive Director, etc. of a subsidiary or any entity which is prescribed by the applicable Ordinance of the Ministry of Justice
as the juridical person for which management is controlled by the person other than the corporation (subsidiary, etc.) of a parent corporation, etc. of such corporation; and (e) a person who is not a spouse or relative within the second
degree of kinship of a director or executive officer (shikkoyaku), manager, or other important employee of such corporation, or its parent corporation, etc. (limited to a natural person).



124



---

##### Table of Contents

Under the Companies Act, a corporation with a board of corporate auditors shall have three
or more corporate auditors, half or more of whom shall be outside corporate auditors. The board of corporate auditors shall appoint full-time corporate auditors from among the corporate auditors.

Outside corporate auditor means a corporate auditor of any corporation who satisfies all of the following requirements: (a) a
person who has not been a director, accounting advisor (kaikei-sanyo) or executive officer (shikkoyaku), or an employee, including a manager, of such corporation or any of its subsidiaries for the ten years prior to assuming his/her
office; (b) in cases where a person who has been a corporate auditor of such corporation or its subsidiary at any time within the ten years prior to assuming his/her office, the person has not been a director, accounting advisor or executive officer
(shikkoyaku), or an employee including a manager, of such corporation or its subsidiary for the ten years prior to assuming his/her office as corporate auditor; (c) a person who is not a parent corporation, etc. of such corporation (limited
to a natural person) or director or executive officer (shikkoyaku) or an employee, including a manager, of a parent corporation, etc.; (d) a person who is not an Executive Director, etc. of a subsidiary, etc. of a parent corporation, etc. of
such corporation; and (e) a person who is not a spouse or relative within the second degree of kinship of a director, manager, or other important employee of such corporation, or its parent corporation, etc. (limited to a natural person).

We have six corporate auditors, three of whom are outside corporate auditors. The auditors monitor the execution of business
operations of us and our subsidiaries by attending meetings of the board of directors and receiving reports on operations from the directors and others. They also review documents relating to important decisions and receive reports from the internal
audit departments, representatives of our subsidiaries and our accounting auditor.

Our corporate auditors (who are not
required to be and most of whom are not certified public accountants) have a statutory duty to examine the financial statements and business reports submitted by the board of directors to the general meeting of shareholders. They also have the duty
to supervise the administration of our affairs by the directors in accordance with the auditing policy and rules prescribed by resolutions of the board of corporate auditors.

All directors and corporate auditors are elected by our shareholders at a general meeting of shareholders. The term of office of a director shall expire upon conclusion of the annual general meeting of
shareholders to be held for the last fiscal year ending within two years after the election of the director. The term of office of a corporate auditor shall expire upon conclusion of the annual general meeting of shareholders to be held for the last
fiscal year ending within four years after the election of the corporate auditor. Directors and corporate auditors may serve any number of consecutive terms.

As mentioned above, the committees of our board of directors were created to enhance effectiveness of governance by our board of directors to oversee our operations.

The auditing committee is responsible for matters relating to internal audits on a Group-wide basis, under delegated authority from the
board of directors. Such matters include internal auditing policies and control systems for the Group, the Company and the Bank, and other important auditing issues of the Group. The committee regularly reports to the board of directors.

The chairman of the auditing committee is Kuniaki Nomura, who is an outside director. Other outside directors on the auditing committee
are Yoshinori Yokoyama and Masaharu Kohno. Other directors on the auditing committee are Masayuki Oku, chairman of our board of directors, Koichi Miyata, our president, Takeshi Kunibe, president and chief executive officer of the Bank and Kozo
Ogino, the officer in charge of the audit department.

The compensation committee is responsible for matters relating to the
compensation of the directors and executive officers of both the Company and the Bank, under delegated authority from the board of directors. Such matters include the determination of bonuses and stock option awards. The compensation committee seeks
to determine appropriate levels of compensation in a transparent and objective manner. The committee reports to the board of directors.



125



---

##### Table of Contents

The chairman of the compensation committee is Yoshinori Yokoyama, who is an outside
director. Other outside directors on the compensation committee are Kuniaki Nomura, Arthur M. Mitchell, Masaharu Kohno and Eriko Sakurai. Other directors on the compensation committee are Masayuki Oku, chairman of our board of directors, Koichi
Miyata, our president, and Takeshi Kunibe, president and chief executive officer of the Bank.

In addition, the risk committee
supervises and reports to our board of directors on material Group-wide risk management and compliance issues. The nominating committee supervises and reports to our board of directors on the selection of directors of both the Company and the Bank,
issues related to selection of candidates for directorships, the appointment of managing directors and the appointment of representative directors and other material director personnel issues.

These committees are each composed of six to eight members including the chairman of the board, three or more outside directors and, in
certain cases, the president. Outside directors are appointed to all these committees to facilitate corporate governance from an objective perspective. As noted above, because the need for objectivity is particularly acute in the case of the
auditing committee, the compensation committee and the nominating committee, the chairmanship of these committees is assigned to outside directors.

At the operational level, we have created the Management Committee to act as the top decision-making body with respect to business administration and management supervision of the entire Group. The
committee, composed of directors designated by our president, considers important matters relating to the execution of business in accordance with the basic policies set by the board of directors and based on discussions held by the committee
members.

For the purpose of protecting the interests of shareholders in general, some Japanese securities exchanges,
including the Tokyo Stock Exchange, requires a listed company to have, from amongst its outside directors or outside corporate auditors, at least one independent director or corporate auditor who does not have conflicting interests with shareholders
as specified under the rule. All companies on these securities exchanges are required to report the name of such independent director or corporate auditor, which is disclosed to the public. In addition, the Japans Corporate Governance Code
(Corporate Governance Code) formulated by the Tokyo Stock Exchange, which establishes fundamental principles for effective corporate governance at listed companies in Japan and took effect in June 2015, provides that listed companies
should appoint at least two independent directors. The independence standard for such independent directors will be determined by the subject listed company taking into consideration the independence standards of the Japanese stock exchanges. We
also established the SMFG Corporate Governance Guideline in consideration of the content of the Corporate Governance Code and such Corporate Governance Guideline provides that one-third or more of the directors, and at least two of them, will be
elected as independent outside directors. We designated all five outside directors and all three outside corporate auditors as independent directors and independent corporate auditors, respectively.

Exemption from Liability

Under the Companies Act and our articles of incorporation, we may exempt our non-executive directors and corporate auditors from
liabilities to us arising in connection with their failure to execute their duties, within the limits stipulated by applicable laws and regulations. Pursuant to such authority, we have entered into a liability limitation agreement with each
non-executive directors and corporate auditor which limits the maximum amount of their liability to the Company arising in connection with a failure to execute their duties to the greater of either ¥10 million or the minimum liability amount
prescribed in applicable laws.

Corporate Governance Practices

Companies listed on the NYSE, must comply with certain corporate governance standards provided under Section 303A of the NYSE Listed Company Manual. However, NYSE-listed companies that are foreign private
issuers, including us, are permitted to follow home country practices in lieu of certain provisions of Section 303A



126



---

##### Table of Contents

if such foreign private issuers meet certain criteria. See Item 16.G. Corporate Governance for a summary of significant ways in which our corporate governance practices differ from
those required to be followed by NYSE-listed U.S. companies.

Independent Registered Public Accounting Firm

We are required to appoint an independent registered public accounting firm, whose appointment is approved at a general meeting of
shareholders. The independent registered public accounting firm has the statutory duty to examine the financial statements prepared in accordance with the Companies Act and approved by the board of directors, and report its opinion thereon to the
designated corporate auditors and to the designated directors for notification to the shareholders. Examination by independent registered public accounting firm of our financial statements is also required for the purpose of the securities report
filed through the Kanto Local Finance Bureau to the Prime Minister for public inspection in accordance with the FIEA. Our independent registered public accounting firm for these purposes is KPMG AZSA LLC (KPMG AZSA).

Benefits upon Termination of Employment

Neither we nor our subsidiaries maintain any directors service contracts providing for benefits upon termination of employment.

6.D.    EMPLOYEES

At March 31, 2016, 2015 and 2014, on a consolidated basis, we had approximately 73,700, 68,700, and 66,500 employees, respectively,
including locally hired staff in our foreign offices but excluding temporary employees. We also had an average of approximately 16,300, temporary employees during the fiscal year ended March 31, 2016.

The following tables show our full-time employees at March 31, 2016 on a consolidated basis under Japanese GAAP broken down based on
business segment and geographical location:



|                      |  |                                                   |     |  
|--------------------- |  | ------------------------------------------------- | --- | -
|                      |  | Percentage of full-timeemployees atMarch 31,
2016 |    
|Business segment:     |  |                                                   |     |  
|Commercial Banking(1) |  |                                                   | 52  | %
|Leasing               |  |                                                   | 4   |  
|Securities            |  |                                                   | 15  |  
|Consumer Finance      |  |                                                   | 15  |  
|Others                |  |                                                   | 14  |  
|                      |  |                                                   |     |  
|Total                 |  |                                                   | 100 | %
|                      |  |                                                   |     |  



|(1) | The number of employees of the Bank represents 38% of the number of our employees on a consolidated basis. Further, the number of employees in the Banks Wholesale
Banking Unit, Retail Banking Unit, International Banking Unit, Treasury Unit and Others represent 7%, 16%, 6%, 1% and 8% of the number of our employees on a consolidated basis, respectively.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                       |  |                                                   |     |  
|---------------------- |  | ------------------------------------------------- | --- | -
|                       |  | Percentage of full-timeemployees atMarch 31,
2016 |    
|Location:              |  |                                                   |     |  
|Japan                  |  |                                                   | 88  | %
|Americas               |  |                                                   | 3   |  
|Europe and Middle East |  |                                                   | 2   |  
|Asia and Oceania       |  |                                                   | 7   |  
|                       |  |                                                   |     |  
|Total                  |  |                                                   | 100 | %
|                       |  |                                                   |     |  



127



---

##### Table of Contents

Most of the employees of the Bank are members of the Sumitomo Mitsui Banking Corporation
Workers Union, which negotiates with the Bank concerning remuneration and working conditions. The union is affiliated with the Federation of City Bank Workers Unions. The Bank considers its labor relations to be excellent.

We consider our level of remuneration, fringe benefits (including an employee share ownership program), working conditions and other
allowances, which include lump-sum payments and annuities to employees upon retirement, to be generally competitive with those offered by other large enterprises in Japan.

6.E.    SHARE OWNERSHIP

Shareholdings by
Directors, Senior Management and Corporate Auditors

The following table shows the number of shares of our common stock
owned by our directors and corporate auditors at June 29, 2016:



|                                  |  |                        |        | 
|--------------------------------- |  | ---------------------- | ------ | 
|                                  |  | Number of shares owned |       
|Directors and corporate auditors: |  |                        |        | 
|Masayuki Oku                      |  |                        | 17,900 | 
|Koichi Miyata                     |  |                        | 14,500 | 
|Takeshi Kunibe                    |  |                        | 14,288 | 
|Yujiro Ito                        |  |                        | 9,222  | 
|Kozo Ogino                        |  |                        | 8,000  | 
|Jun Ohta                          |  |                        | 6,800  | 
|Katsunori Tanizaki                |  |                        | 6,700  | 
|Koichi Noda                       |  |                        | 3,900  | 
|Tetsuya Kubo                      |  |                        | 7,731  | 
|Yoshinori Yokoyama                |  |                        |       | 
|Kuniaki Nomura                    |  |                        |       | 
|Arthur M. Mitchell                |  |                        |       | 
|Masaharu Kohno                    |  |                        |       | 
|Eriko Sakurai                     |  |                        |       | 
|Toshiyuki Teramoto                |  |                        | 7,900  | 
|Kazuhiko Nakao                    |  |                        | 1,100  | 
|Toru Mikami                       |  |                        | 500    | 
|Ikuo Uno                          |  |                        |       | 
|Satoshi Itoh                      |  |                        |       | 
|Rokuro Tsuruta                    |  |                        |       | 

None of our directors or corporate auditors is the owner of more than one percent of our common stock,
and no director or corporate auditor has voting rights with respect to our common stock that are different from any other holder of our common stock.

Stock Option Plans and Other Remuneration for Directors and Senior Management

In June 2010, a resolution was passed at the general meeting of shareholders to introduce a stock option compensation program for directors, corporate auditors and executive officers of the Company and
the Bank (SMFG Stock Acquisition Rights). This serves to incentivize grantees to further contribute to the equity appreciation and improved corporate performance through a sharing of the benefits and risks of share price performance of
our shares. These changes reflected a review of our compensation system and the elimination of retirement benefits for directors, corporate auditors and executive officers.



128



---

##### Table of Contents

The following table provides an overview of the significant terms and conditions of our
stock option plans:



|                                          |  |                   |  |                                                                                     |  |                                               |  |                                    |  |                                                                                                               
|----------------------------------------- |  | ----------------- |  | ----------------------------------------------------------------------------------- |  | --------------------------------------------- |  | ---------------------------------- |  | --------------------------------------------------------------------------------------------------------------
|                                          |  | Date ofresolution |  | Number of grantees                                                                  |  | Shares granted                                |  | Exercise period                    |  | Exercise price                                                                                                
|                                          |  |                   |  |                                                                                     | 
|SMFG Stock Acquisition Rights(1st series) |  | July 28, 2010     |  | 82 directors, corporate auditors and executive officers of the Company and the Bank |  | 102,600 shares of common stock of the Company |  | August 13, 2010 to August 12, 2040 |  | ¥1 per share granted upon exercise of each stock acquisition right, multiplied by the number of shares granted
|                                          |  |                   |  |                                                                                     | 
|SMFG Stock Acquisition Rights(2nd series) |  | July 29, 2011     |  | 85 directors, corporate auditors and executive officers of the Company and the Bank |  | 268,200 shares of common stock of the Company |  | August 16, 2011 to August 15, 2041 |  | ¥1 per share granted upon exercise of each stock acquisition right, multiplied by the number of shares granted
|                                          |  |                   |  |                                                                                     | 
|SMFG Stock Acquisition Rights(3rd series) |  | July 30, 2012     |  | 85 directors, corporate auditors and executive officers of the Company and the Bank |  | 280,500 shares of common stock of the Company |  | August 15, 2012 to August 14, 2042 |  | ¥1 per share granted upon exercise of each stock acquisition right, multiplied by the number of shares granted
|                                          |  |                   |  |                                                                                     | 
|SMFG Stock Acquisition Rights(4th series) |  | July 29, 2013     |  | 82 directors, corporate auditors and executive officers of the Company and the Bank |  | 115,700 shares of common stock of the Company |  | August 14, 2013 to August 13, 2043 |  | ¥1 per share granted upon exercise of each stock acquisition right, multiplied by the number of shares granted
|                                          |  |                   |  |                                                                                     | 
|SMFG Stock Acquisition Rights(5th series) |  | July 30, 2014     |  | 82 directors, corporate auditors and executive officers of the Company and the Bank |  | 121,900 shares of common stock of the Company |  | August 15, 2014 to August 14, 2044 |  | ¥1 per share granted upon exercise of each stock acquisition right, multiplied by the number of shares granted
|                                          |  |                   |  |                                                                                     | 
|SMFG Stock Acquisition Rights(6th series) |  | July 31, 2015     |  | 83 directors, corporate auditors and executive officers of the Company and the Bank |  | 132,400 shares of common stock of the Company |  | August 18, 2015 to August 17, 2045 |  | ¥1 per share granted upon exercise of each stock acquisition right, multiplied by the number of shares granted

We have employee stock ownership associations in Japan for our, the Banks and other
subsidiaries employees. Members of the employee stock ownership associations set aside certain amounts from their monthly



129



---

##### Table of Contents

salary to purchase our common stock through the relevant employee stock ownership association. The administrator of each association makes open-market purchases of our common stock for the
account of the association on a monthly basis. We, the Bank and other subsidiaries contribute matching funds equivalent to 5% of the amount purchased by the relevant association. At March 31, 2016, none of the employee stock ownership associations
held more than 1% of our common stock.



|Item 7. | Major Shareholders and Related Party Transactions
|------- | -------------------------------------------------

7.A.    MAJOR SHAREHOLDERS

Major
Shareholders

Our major shareholders, appearing on our register of common shareholders at March 31, 2016, were as follows:



|                                                     |  |                          |            |  |                                 |  |      |  
|---------------------------------------------------- |  | ------------------------ | ---------- |  | ------------------------------- |  | ---- | -
|                                                     |  | Number of
shares held(3) |            |  | Percentageof
sharesissued(1)(3) | 
|Name:                                                |  |                          |            |  |                                 |  |      |  
|Japan Trustee Services Bank, Ltd. (Trust Account)    |  |                          | 71,063,600 |  |                                 |  | 5.02 | %
|The Master Trust Bank of Japan, Ltd. (Trust Account) |  |                          | 51,171,600 |  |                                 |  | 3.61 | %
|Sumitomo Mitsui Banking Corporation(2)               |  |                          | 42,820,924 |  |                                 |  | 3.02 | %
|STATE STREET BANK AND TRUST COMPANY 505223           |  |                          | 35,764,641 |  |                                 |  | 2.52 | %
|Japan Trustee Services Bank, Ltd. (Trust Account 9)  |  |                          | 27,917,100 |  |                                 |  | 1.97 | %
|THE BANK OF NEW YORK MELLON SA/NV 10                 |  |                          | 27,518,378 |  |                                 |  | 1.94 | %
|NATSCUMCO                                            |  |                          | 24,593,200 |  |                                 |  | 1.73 | %
|STATE STREET BANK AND TRUST COMPANY 505001           |  |                          | 19,426,073 |  |                                 |  | 1.37 | %
|STATE STREET BANK WEST CLIENTTREATY 505234          |  |                          | 18,341,126 |  |                                 |  | 1.29 | %
|STATE STREET BANK AND TRUST COMPANY                  |  |                          | 17,518,902 |  |                                 |  | 1.23 | %



|(1) | Percentages are calculated based on the total number of shares of common stock then issued, including our treasury stock, and have been truncated to the nearest second
decimal point.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Pursuant to Article 67 of the Enforcement Ordinance of the Company Act, our subsidiary Sumitomo Mitsui Banking Corporation is not entitled to exercise the voting rights
of our common shares it holds.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | In January 2015, we received a copy of a filing made by BlackRock Japan Co., Ltd. with the Kanto Local Finance Bureau on January 21, 2015 indicating that BlackRock
Japan Co., Ltd. and its affiliates held 5.01% of our outstanding common stock at January 15, 2015. We are aware of a Schedule 13G/A filing made by BlackRock Inc. with the SEC on January 27, 2016 indicating that BlackRock Inc. and its subsidiaries
beneficially held 76,216,139 shares of our common stock, representing 5.4% of our outstanding common stock, at December 31, 2015. However, we have not confirmed the status of these shareholdings at March 31, 2016.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our major shareholders do not have different voting rights.

Shareholders in the United States

Because some of our common stock was
held by brokers or other nominees, the number of shares held by and the number of beneficiary holders with addresses in the United States is not fully ascertainable. At March 31, 2016, there were 248 record holders of our common stock with addresses
in the United States, whose shareholdings represented approximately 21% of our outstanding common stock on that date.

Control of the
Company

To our knowledge, we are not directly or indirectly owned or controlled by any another corporation(s), by any
foreign government or by any other natural or legal person(s), severally or jointly.

Arrangements for Change in Control of the Company

We know of no arrangements the operation of which may at a later time result in a change of control.



130



---

##### Table of Contents

7.B.    RELATED PARTY TRANSACTIONS

We and our banking subsidiaries had, and expect to have in the future, banking transactions and other transactions in the
ordinary course of business with our related parties. For the fiscal year ended March 31, 2016, such transactions included, but were not limited to, loans, deposits and guarantees. Furthermore, such transactions were immaterial and were made at
prevailing market rates, terms and conditions, and did not involve more than the normal risk of collectibility or present other unfavorable features.

During the fiscal year ended March 31, 2016, none of our directors or corporate auditors or the Banks directors, and none of the close members of their respective families, had any transactions that
were material or any transactions that were unusual in their nature or conditions, involving goods, services or tangible or intangible assets, to which we were a party, and no such transactions were proposed at March 31, 2016. During the fiscal year
ended March 31, 2016, we made no loans to our directors or corporate auditors or the Banks directors other than those that were made in the ordinary course of business, on substantially the same terms, including interest rates and collateral,
as those prevailing at the time for comparable transactions with other persons, and did not involve more than the normal risk of collectibility or present other unfavorable features.

7.C.    INTERESTS OF EXPERTS AND COUNSEL

Not applicable.



|Item 8. | Financial Information
|------- | ---------------------

8.A.    CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION

Financial Statements

All
relevant financial statements are attached hereto. See Item 18. Financial Statements. See Item 5.A. Operating ResultsReconciliation with Japanese GAAP for a reconciliation of consolidated net profit and total equity for
the fiscal year ended March 31, 2016 under IFRS, with those amounts under Japanese GAAP.

Export Sales

Not applicable.

Legal
Proceedings

We are party to routine litigation incidental to our business, none of which is currently expected to have a
material adverse effect on our financial condition or results of operations. However, there can be no assurance that an adverse decision in one or more of these lawsuits will not have a material adverse effect.

Dividend Policy and Dividends

The declaration, payment and determination of any year-end dividend are subject to the approval of shareholders of our common stock at our general meeting of shareholders and to statutory restrictions.
The declaration, payment and determination of the amount of any interim dividend require a resolution of our board of directors and are subject to statutory restrictions. Dividend payments are made to shareholders or pledgees of record at the record
dates for each payment. March 31 is the record date for year-end dividends and September 30 is the record date for interim dividends. The payment of year-end and interim dividends on common stock is subject to prior payment of dividends on
our preferred stock, if any.

We have a basic policy of pursuing the sustainable growth of shareholder value and increasing
the dividend per share in a stable manner, by achieving higher profitability and growth through growth investments with a focus on capital efficiency, while enhancing retained earnings to maintain financial soundness.



131



---

##### Table of Contents

The following table shows historical aggregate dividend payments per share of our common
stock for each of the fiscal years from the fiscal year ended March 31, 2014 through the fiscal year ended March 31, 2016:



|                            |  |                    |     |  |             |   |     | 
|--------------------------- |  | ------------------ | --- |  | ----------- | - | --- | 
|                            |  | Dividend per share |    
|                            |  | Paid(1)            |     |  | Declared(2) |  
|Fiscal year ended March 31, |  |                    |     |  |             |   |     | 
|2014                        |  | ¥                  | 120 |  |             | ¥ | 125 | 
|2015                        |  |                    | 140 |  |             |   | 125 | 
|2016                        |  |                    | 150 |  |             |   | 155 | 



|(1) | Dividend per share based on dividends in respect of each fiscal year including dividends proposed after current fiscal year-end but not recognized in the financial
statements and excluding dividends in respect of the previous fiscal year declared in current fiscal year.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Dividend per share based on dividends declared and recognized in the financial statements during each fiscal year.
|--- | ------------------------------------------------------------------------------------------------------------------

8.B.    SIGNIFICANT CHANGES

Except as otherwise described in this annual report, no significant change in our financial position has occurred since the date of the
financial statements included elsewhere in this annual report.



|Item 9. | The Offer and Listing
|------- | ---------------------

9.A.    OFFER AND LISTING DETAILS

Offering Details

Not
applicable.



132



---

##### Table of Contents

Price History of the Shares

Market Price Information for Our American Depositary Shares

The
following table sets forth, for the periods indicated, the high and low trading prices, and average daily trading volume for our ADSs on the NYSE since the fiscal year ended March 31, 2012.



|                                                           |  |               |       |  |                             |   |      |  |  |  |           | 
|---------------------------------------------------------- |  | ------------- | ----- |  | --------------------------- | - | ---- |  |  |  | --------- | 
|                                                           |  | Price per ADS |       |  | Average dailytrading volume |  
|                                                           |  | High          |       |  | Low                         |   |     
|                                                           |  | (In dollars)  |       |  | (Number ofshares)           |  
|Fiscal year ended March 31, except quarter and month data: |  |               |       |  |                             |   |      |  |  |  |           | 
|2012                                                       |  | $             | 7.06  |  |                             | $ | 5.12 |  |  |  | 432,531   | 
|2013                                                       |  |               | 9.46  |  |                             |   | 5.55 |  |  |  | 888,210   | 
|2014                                                       |  |               | 10.59 |  |                             |   | 7.32 |  |  |  | 1,600,359 | 
|2015:                                                      |  |               |       |  |                             |   |      |  |  |  |           | 
|First quarter                                              |  |               | 8.83  |  |                             |   | 7.59 |  |  |  | 1,319,744 | 
|Second quarter                                             |  |               | 8.61  |  |                             |   | 7.90 |  |  |  | 1,195,001 | 
|Third quarter                                              |  |               | 8.42  |  |                             |   | 6.95 |  |  |  | 2,062,355 | 
|Fourth quarter                                             |  |               | 8.24  |  |                             |   | 6.74 |  |  |  | 2,494,071 | 
|Full year                                                  |  |               | 8.83  |  |                             |   | 6.74 |  |  |  | 1,760,924 | 
|2016:                                                      |  |               |       |  |                             |   |      |  |  |  |           | 
|First quarter                                              |  |               | 9.25  |  |                             |   | 7.74 |  |  |  | 2,405,701 | 
|Second quarter                                             |  |               | 9.28  |  |                             |   | 7.26 |  |  |  | 1,206,089 | 
|Third quarter                                              |  |               | 8.49  |  |                             |   | 7.40 |  |  |  | 1,202,063 | 
|Fourth quarter                                             |  |               | 7.69  |  |                             |   | 5.01 |  |  |  | 4,154,861 | 
|Full year                                                  |  |               | 9.28  |  |                             |   | 5.01 |  |  |  | 2,218,760 | 
|Most recent six months:                                    |  |               |       |  |                             |   |      |  |  |  |           | 
|December                                                   |  |               | 7.84  |  |                             |   | 7.40 |  |  |  | 1,292,301 | 
|January                                                    |  |               | 7.69  |  |                             |   | 6.50 |  |  |  | 2,480,876 | 
|February                                                   |  |               | 6.11  |  |                             |   | 5.01 |  |  |  | 7,330,455 | 
|March                                                      |  |               | 6.49  |  |                             |   | 5.60 |  |  |  | 2,713,672 | 
|April                                                      |  |               | 6.88  |  |                             |   | 5.57 |  |  |  | 2,153,048 | 
|May                                                        |  |               | 6.44  |  |                             |   | 5.86 |  |  |  | 1,356,421 | 
|June (through June 15, 2016)                               |  |               | 6.36  |  |                             |   | 5.65 |  |  |  | 1,859,022 | 



133



---

##### Table of Contents

Market Price Information for Our Shares

See Item 9.C. Markets for information on the stock exchanges on which our common stock is listed.

The following table sets forth, for the periods indicated, the high and low trading prices, and average daily trading volume for our
common stock since the fiscal year ended March 31, 2012 on the Tokyo Stock Exchange.



|                                                           |  |                  |       |  |                             |   |       |  |  |  |            | 
|---------------------------------------------------------- |  | ---------------- | ----- |  | --------------------------- | - | ----- |  |  |  | ---------- | 
|                                                           |  | Price per shares |       |  | Average dailytrading volume |  
|                                                           |  | High             |       |  | Low                         |   |      
|                                                           |  | (In yen)         |       |  | (Number ofshares)           |  
|Fiscal year ended March 31, except quarter and month data: |  |                  |       |  |                             |   |       |  |  |  |            | 
|2012                                                       |  | ¥                | 2,933 |  |                             | ¥ | 2,003 |  |  |  | 8,339,526  | 
|2013                                                       |  |                  | 4,255 |  |                             |   | 2,231 |  |  |  | 7,228,299  | 
|2014                                                       |  |                  | 5,470 |  |                             |   | 3,545 |  |  |  | 9,052,026  | 
|2015:                                                      |  |                  |       |  |                             |   |       |  |  |  |            | 
|First quarter                                              |  |                  | 4,608 |  |                             |   | 3,800 |  |  |  | 8,256,444  | 
|Second quarter                                             |  |                  | 4,537 |  |                             |   | 3,978 |  |  |  | 5,746,754  | 
|Third quarter                                              |  |                  | 4,699 |  |                             |   | 3,823 |  |  |  | 7,553,595  | 
|Fourth quarter                                             |  |                  | 4,915 |  |                             |   | 3,902 |  |  |  | 8,954,048  | 
|Full year                                                  |  |                  | 4,915 |  |                             |   | 3,800 |  |  |  | 7,609,582  | 
|2016:                                                      |  |                  |       |  |                             |   |       |  |  |  |            | 
|First quarter                                              |  |                  | 5,747 |  |                             |   | 4,530 |  |  |  | 8,901,549  | 
|Second quarter                                             |  |                  | 5,770 |  |                             |   | 4,388 |  |  |  | 8,516,021  | 
|Third quarter                                              |  |                  | 5,220 |  |                             |   | 4,471 |  |  |  | 6,910,602  | 
|Fourth quarter                                             |  |                  | 4,640 |  |                             |   | 2,820 |  |  |  | 12,667,405 | 
|Full year                                                  |  |                  | 5,770 |  |                             |   | 2,820 |  |  |  | 9,245,903  | 
|Most recent six months:                                    |  |                  |       |  |                             |   |       |  |  |  |            | 
|December                                                   |  |                  | 4,833 |  |                             |   | 4,471 |  |  |  | 6,848,652  | 
|January                                                    |  |                  | 4,640 |  |                             |   | 3,781 |  |  |  | 10,014,458 | 
|February                                                   |  |                  | 3,745 |  |                             |   | 2,820 |  |  |  | 17,532,850 | 
|March                                                      |  |                  | 3,802 |  |                             |   | 3,126 |  |  |  | 10,535,455 | 
|April                                                      |  |                  | 3,895 |  |                             |   | 3,035 |  |  |  | 10,725,845 | 
|May                                                        |  |                  | 3,617 |  |                             |   | 3,207 |  |  |  | 7,180,289  | 
|June (through June 15, 2016)                               |  |                  | 3,602 |  |                             |   | 3,022 |  |  |  | 8,428,764  | 

9.B.    PLAN OF DISTRIBUTION

Not applicable.

9.C.    MARKETS

The primary trading market for our common stock is the Tokyo Stock Exchange (First Section), and our common stock is also listed on the
Nagoya Stock Exchange (First Section). Our common stock is not listed on any stock exchange outside of Japan.

Our ADSs have
been listed on the NYSE since November 1, 2010 and are quoted under the ticker symbol SMFG.

9.D.    SELLING SHAREHOLDERS

Not applicable.



134



---

##### Table of Contents

9.E.    DILUTION

Not applicable.

9.F.    EXPENSES OF THE ISSUE

Not applicable.



|Item 10. | Additional Information
|-------- | ----------------------

10.A.    SHARE CAPITAL

Not applicable.

10.B.    MEMORANDUM AND ARTICLES OF INCORPORATION

Set out below is information concerning our share capital, including a summary of provisions of our articles of incorporation and share
handling regulations and of the Companies Act relating to joint stock corporations (kabushiki-kaisha) and related legislation, each as currently in effect.

Register and Entry, Objects and Purposes of the Company

The Company is a
joint stock corporation (kabushiki-kaisha) incorporated in Japan under the Companies Act (kaishaho) of Japan. It is registered in the commercial register (shogyo-tokibo) maintained by the Chiyoda Branch Office of the Tokyo
Bureau of Legal Affairs.

Article 2 of our articles of incorporation provides that our purpose is to engage in the following
business activities:



| |  |  | management of banks and other corporations which are permitted to become, or to be established as, subsidiaries under the Banking Act and any business
incidental thereto; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | in addition to the businesses provided in the foregoing item, any business in which a bank holding company is permitted to engage under the Banking
Act.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

Provisions Relating to Directors

With respect to directors, the Companies Act and our articles of incorporation, bylaws and associated internal rules issued pursuant to the articles provide in summary as follows:



| |  |  | a director is not entitled to vote on a proposal or arrangement or contract in which the director has a special interest;
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | the aggregate remuneration for directors are determined at a general meeting of shareholders and, within the upper limit approved at the general
meeting of shareholders, our board of directors will determine the amount of compensation for each director; our board of directors may, by its resolution, leave such decision to the discretion of our representative director;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the board of directors has authority to approve transactions between the directors and us;
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | there are no provisions requiring the mandatory retirement of directors at a specified age; and
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | share ownership is not required in order to be eligible to serve as a director.
| | - |  | -------------------------------------------------------------------------------

Rights, Preferences and Restrictions of the Shares

A joint stock corporation is a legal entity incorporated under the Companies Act. The rights of shareholders of a joint stock corporation are represented by shares of stock in the corporation, and
shareholders liability is limited to the amount of the subscription for the shares.



135



---

##### Table of Contents

We may issue shares within our authorized but unissued share capital following a resolution
by our board of directors. An increase in our authorized share capital requires an amendment of our articles of incorporation, which generally requires approval of our common and preferred shareholders, if any.

Common Stock

General

On January 5, 2009, a central clearing system of shares of
Japanese listed companies was enacted under the Act Concerning Book-Entry Transfer of Corporate Bonds, Shares and Other Securities (Book-Entry Transfer Act) and the shares of all Japanese companies listed on any Japanese stock exchange,
including our shares, became subject to this system, and all share certificates of companies then listed in Japan became null and void on the effective date of the Book-Entry Transfer Act.

Under the clearing system, a person must have an account at an account managing institution or at Japan Securities Depository Center,
Inc. (JASDEC) in order to purchase, hold, sell or otherwise dispose of listed shares. Account managing institutions include financial instruments traders (i.e., securities companies), banks, trust companies and certain other financial
institutions which meet the requirements prescribed by the Book-Entry Transfer Act, and only those financial institutions that meet further stringent requirements of the Book-Entry Transfer Act can open accounts directly at JASDEC. Under the
Book-Entry Transfer Act, any transfer of shares is effected through book entry, and title to the shares passes to the transferee at the time when the transferred number of the shares is recorded in the transferees account at an account
managing institution. The holder of an account at an account managing institution is presumed to be the legal owner of the shares held in such account.

Under the Companies Act and the Book-Entry Transfer Act, in order to assert shareholders rights against us, a shareholders name and address must be registered in our register of shareholders,
except in limited circumstances. Under the clearing system, such registration is made upon our receipt of the necessary information from JASDEC. Nonresidents of Japan or non-Japanese corporations without a permanent establishment in Japan
(Nonresident Shareholders) are required to appoint a standing proxy in Japan or provide a mailing address in Japan. Each Nonresident Shareholder must give notice of a standing proxy or a mailing address to the relevant account managing
institution. That notice will be forwarded to us through JASDEC. Japanese securities companies and commercial banks customarily act as standing proxies and provide related services for standard fees. Notices from us to Nonresident Shareholders are
delivered to standing proxies or their mailing addresses in Japan.

Our transfer agent is Sumitomo Mitsui Trust Bank, Limited.

Distributions of Surplus

As a holding company, we expect that most of our cash flow will come from dividends that the Bank pays us. Under some circumstances, various statutory or contractual provisions may restrict the dividends
the Bank can pay us. For example, if the Bank does not have sufficient distributable amounts, it will be unable to pay dividends and we, in turn, may be unable to pay dividends on shares of our common stock. Therefore, our ability to pay dividends
mainly depends on the financial performance of our principal operating subsidiary, the Bank.

Under the Companies Act,
distribution of cash or other assets by a joint stock corporation to its shareholders, including dividends, takes the form of distributions of surplus (as described in Restriction on Distributions of Surplus). We are permitted to
make distributions of surplus to our shareholders any number of times per fiscal year, subject to limitations described in Restriction on Distributions of Surplus. Distributions of surplus are required in principle to be authorized
by a resolution of a general meeting of shareholders. Distributions of surplus are, however, permitted pursuant to a resolution of the board of directors if:



| | (1) | our articles of incorporation so provide (our current articles of incorporation do not have a provision to that effect);
| | --- | ------------------------------------------------------------------------------------------------------------------------



136



---

##### Table of Contents

| | (2) | the normal term of office of our directors is no longer than one year (our current articles of incorporation provide that the normal term of office of our directors
expires upon the close of the general meeting of shareholders to be held for the last fiscal year ending within two years after the election); and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | our nonconsolidated annual financial statements and certain documents for the latest fiscal year fairly present our assets and profit or loss, as required by an
ordinance of the Ministry of Justice.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In an exception to the above rule, even if the requirements described in
(1) through (3) are not met, we are permitted to make distributions of surplus in cash to our shareholders by resolutions of the board of directors once per fiscal year if our articles of incorporation so provide. Our current articles of
incorporation provide for distributions of surplus as interim dividends, the record date for which is September 30 of each year.

Distributions of surplus may be made in cash or in kind in proportion to the number of shares of common stock held by each shareholder. A resolution of a general meeting of shareholders or by the board of
directors authorizing a distribution of surplus must specify the kind and aggregate book value of assets to be distributed, the manner of allocation of the assets to shareholders, and the effective date of the distribution. If a distribution of
surplus is to be made in kind, we may, pursuant to a resolution of a general meeting of shareholders or by the board of directors, grant the right to our shareholders to require us to make the distribution in cash instead of in kind. If that right
is not granted to shareholders, then the relevant distribution of surplus must be approved by a special resolution of a general meeting of shareholders.

Under our articles of incorporation, the record dates for annual dividends and interim dividends are March 31 and September 30, respectively, in each year. In Japan, both ex-dividend date
(the date from which purchasers at shares through Japanese stock exchanges will not be entitled to the dividends to be paid to registered shareholders as any record date) and the record date for dividends precede the date of determination of the
amount of the dividend to be paid. The ex-dividend date of the shares of common stock is generally the third business day prior to the record date. Under our articles of incorporation, we are not obligated to pay any distributions of surplus to be
made in cash which have not been received after five years from the commencement date of those distributions.

Restriction
on Distributions of Surplus

Payment of dividends on shares of common stock is also subject to the prior payment of
dividends on shares of preferred stock, if any. In the event we pay an interim dividend on shares of our common stock, the interim dividend payment is also subject to the prior payment of interim dividends on the shares of preferred stock, if any.

When we make a distribution of surplus, we must set aside in our capital reserve or retained earnings reserve an amount equal
to one-tenth of the amount of surplus so distributed as required by an ordinance of the Ministry of Justice.



137



---

##### Table of Contents

The amount of surplus at any given time must be calculated in accordance with the following
formula:

A + B + C + D  (E + F + G)

In the above formula:



A

=

the total amount of other capital surplus and other retained earnings, each being the amount that appears on our nonconsolidated balance sheet as of the end of the last fiscal
year;B

=

if we have disposed of treasury stock after the end of the last fiscal year, the amount of the consideration for that treasury stock received by us less the book value
thereof;C

=

if we have reduced our stated capital after the end of the last fiscal year, the amount of that reduction less the portion thereof that has been transferred to capital reserve or
retained earnings reserve, if any:D

=

if we have reduced our capital reserve or retained earnings reserve after the end of the last fiscal year, the amount of that reduction less the portion thereof that has been
transferred to stated capital, if any:E

=

if we have cancelled treasury stock after the end of the last fiscal year, the book value of that treasury stock;F

=

if we have distributed surplus to our shareholders after the end of the last fiscal year, the total book value of the surplus so distributed; andG

=

other amounts set forth in an ordinance of the Ministry of Justice, including:




| |  |  | if we have reduced surplus and increased our stated capital, capital reserve or retained earnings reserve after the end of the last fiscal year, the
amount of that reduction; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | if we have distributed surplus to shareholders after the end of the last fiscal year, the amount set aside in our capital reserve or retained earnings
reserve, if any, as required by ordinances of the Ministry of Justice.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The aggregate book value of surplus
distributed by us may not exceed a prescribed distributable amount as calculated on the effective date of the distribution. Our prescribed distributable amount at any given time shall be the amount of surplus less the aggregate of (a) the book value
of our treasury stock, (b) the amount of consideration for any treasury stock we disposed of after the end of the last fiscal year, (c) the sum of net unrealized losses on other securities and unrealized losses on land valuation, and (d) other
amounts set forth in an ordinance of the Ministry of Justice, including (if the sum of one-half of our goodwill and deferred assets exceeds the total of the stated capital, capital reserve and retained earnings reserve, each being the amount in our
nonconsolidated balance sheet at the end of the last fiscal year) all or a certain part of the exceeding amount as calculated in accordance with the ordinances of the Ministry of Justice. If we have prepared interim financial statements in
accordance with the ordinances of the Ministry of Justice as described below, and if the interim financial statements have been approved by the board of directors or (if so required) by a general meeting of shareholders, then the prescribed
distributable amount must be adjusted to take into account the amount of profit or loss, and the amount of consideration for any of our treasury stock disposed of by us, during the period for which the interim financial statements have been
prepared. We will be permitted to prepare nonconsolidated interim financial statements consisting of a balance sheet at any date subsequent to the end of the last fiscal year and an income statement for the period from the first day of the current
fiscal year to the date of the balance sheet. Interim financial statements so prepared by us must be audited by our corporate auditors and/or accounting auditors, as required by an ordinance of the Ministry of Justice.

Voting Rights

Holders of shares of common stock have one voting right for each unit of shares held by them. Except as otherwise provided by law or by our articles of incorporation, a resolution can be adopted at a
general meeting of



138



---

##### Table of Contents

shareholders by the holder of a majority of the total number of the voting rights represented at the meeting. In our articles of incorporation the quorum to elect directors and corporate auditors
is one-third of the total number of voting rights. Our shareholders are not entitled to cumulative voting in the election of directors. Our shareholders may cast their votes by mail or via the internet. Our shareholders may also exercise their
voting rights through proxies, provided that the proxies are also holders of shares with voting rights.

The Companies Act
provides that certain important matters shall be approved by a special resolution of a general meeting of shareholders. Under our articles of incorporation, the quorum for a special resolution is one-third of the total number of voting rights and
the approval of at least two-thirds of the voting rights represented at the meeting is required for adopting a special resolution. Important matters include:



| |  |  | amending the articles of incorporation (except for amendments that may be authorized by the board of directors under the Companies Act);
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------



| |  |  | reducing stated capital which meets certain requirements, with some exceptions;
| | - |  | -------------------------------------------------------------------------------



| |  |  | removing a corporate auditor;
| | - |  | -----------------------------



| |  |  | dissolving, merging or consolidating requiring shareholders approval;
| | - |  | ----------------------------------------------------------------------



| |  |  | establishing a parent and a wholly owned subsidiary relationship by way of a share transfer
(kabushiki-iten) or share exchange (kabushiki-kokan) requiring shareholders approval;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | transferring the whole or a substantial part of our business;
| | - |  | -------------------------------------------------------------



| |  |  | transferring all or part of the shares of a subsidiary which meets certain requirements;
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | taking over the whole business of another company requiring shareholders approval;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | corporate split requiring shareholders approval;
| | - |  | -------------------------------------------------



| |  |  | consolidating shares of common stock;
| | - |  | -------------------------------------



| |  |  | acquiring shares of common stock from a specific shareholder other than one of our subsidiaries;
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | issuing or transferring new shares or existing shares held by us as treasury stock to persons other than the shareholders at a specially favorable
price;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | issuing stock acquisition rights (including those incorporated in bonds with stock acquisition rights) to persons other than the shareholders under
specially favorable conditions;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | exempting some liability of a director or corporate auditor; and
| | - |  | ----------------------------------------------------------------



| |  |  | distributing surplus in-kind if shareholders are not granted the right to require us to make a distribution in cash instead of in-kind.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------

Capital and Reserves

When we issue new shares, the amount of the cash or assets paid or contributed by subscribers for new shares (with some exceptions) is required to be accounted for as stated capital, although we may
account for an amount not exceeding one-half of the cash or assets as capital reserve by resolutions of the board of directors.

We may reduce our capital reserve or retained earnings reserve generally by resolution of a general meeting of shareholders. We may
account for the whole or any part of the reduction as stated capital if we so decide by the same resolution. On the other hand, we may reduce our stated capital generally by special resolution of a general meeting of shareholders and may account for
the whole or any part of the reduction as capital reserve if we so decide by the same resolution. We may reduce our surplus and increase either (1) stated capital or (2) capital reserve and/or retained earnings reserve by the same amount, in
either case by resolution of a general meeting of shareholders.



139



---

##### Table of Contents

Stock Splits

We may at any time split our outstanding shares of common stock into a greater number of shares of common stock by resolution of the board of directors. When a stock split is to be made, so long as our
only class of outstanding stock is the common stock, we may increase the number of authorized shares in the same ratio as that of the stock split by amending our articles of incorporation. We may effect such an amendment by resolution of the board
of directors without shareholder approval.

We must give public notice of a stock split, specifying the record date therefore,
not less than two weeks prior to the record date.

Unit Share System

We have a unit share system, under which 100 shares of our common stock constitute one unit. Under the unit share system, shareholders
have one voting right for each unit of shares held by them at a general meeting of shareholders, and shares constituting a fractional unit carry no voting rights. Under our articles of incorporation, the holders of shares constituting a fractional
unit do not have shareholder rights except for those specified in the Companies Act or an ordinance of the Ministry of Justice, which include the rights (1) to receive dividends, (2) to receive cash or other assets in case of consolidation or
split of shares, share exchange or share transfer, or merger, or (3) to be allotted rights to subscribe for free new shares and stock acquisition rights when those rights are granted to shareholders. We may cease to use the unit share system by
amendment to the articles of incorporation without shareholders approval even though amendments to the articles of incorporation generally require a special resolution of the general meeting of shareholders.

A holder of shares of our common stock constituting less than one unit may at any time request us to purchase those shares. In addition,
a holder of shares of our common stock constituting less than one unit may at any time request us to sell to it the number of shares necessary to raise its share ownership to a whole unit. Under the clearing system operated by JASDEC, such request
must be made through the financial institution where the shareholder has opened its account.

The price at which shares of our
common stock constituting less than one unit will be purchased or sold by us pursuant to such request will be equal to either (a) the closing price of shares of our common stock reported by the Tokyo Stock Exchange on the day when such request is
received by our transfer agent, or (b) if no sale takes place on the Tokyo Stock Exchange on that day, the price at which sale of such shares is executed on the Tokyo Stock Exchange immediately thereafter. Pursuant to our share handling regulations,
an amount equal to the applicable brokerage commission will be deducted from the price so determined.

Under the new clearing
system, shares constituting less than one unit are transferable. Under the rules of the Japanese stock exchanges, however, shares constituting less than one unit do not comprise a trading unit, except in limited circumstances, and accordingly, may
not be sold on the Japanese stock exchanges.

Liquidation Rights

In the event of our liquidation, the assets remaining after payment of all debts, liquidation expenses, taxes and required distribution
payments to preferred shareholders, if any, will be distributed among shareholders of common stock in proportion to the respective number of shares which they hold. For liquidation preference for residual assets to the holders of preferred stock,
see Preferred StockLiquidation Rights.

Redemption Provisions and Sinking Fund Provisions

Our common stock has no redemption provisions or sinking fund provisions.



140



---

##### Table of Contents

Liability to Further Calls or Assessments

Our shares of common stock outstanding, including shares represented by the ADSs, are fully paid and nonassessable.

Legal Restrictions on Acquisitions of Shares

The FIEA and its related regulations require any person who has become solely or jointly a beneficial holder of more than 5% of the total issued shares of capital stock of a company listed on any Japanese
stock exchange, to file with the director of an appropriate local finance bureau of the Ministry of Finance within five business days a report concerning the shareholdings. With some exceptions, a similar report must also be filed in respect of any
subsequent change of 1% or more in those holdings or any change in material matters set out in reports previously filed. For this purpose, shares issuable to a holder upon conversion of convertible securities or exercise of share subscription
warrants or stock acquisition rights are taken into account in determining both the number of shares held by such holder and the issuers total issued share capital. Copies of each report must also be furnished to all the Japanese stock
exchanges on which the shares are listed.

Under the Banking Act, a person who desires to hold 20% (in some exceptional cases,
15%) or more of the voting rights of a bank is required to obtain advance approval of the FSA Commissioner. In addition, any person who becomes a holder of more than 5% of the voting rights of a bank holding company or a bank must report the
ownership of the voting rights to the director of an appropriate local finance bureau within five business days. This requirement is separate from the significant shareholdings report required under the FIEA. See Item 4.B. Business
OverviewRegulations in JapanRegulations for Stabilizing the Financial SystemExamination and Reporting Applicable to Shareholders of a Bank.

Subscription Rights

Holders of shares of our common stock have no
preemptive rights. Authorized but unissued shares of common stock may be issued at the times, and upon the terms the board of directors determines, subject to the limitations as to the issuance of new shares of common stock at a specially favorable
price mentioned in Voting Rights above. The board of directors may, however, determine that the holders of shares of common stock be given subscription rights to new shares of common stock, in which case they must be given on
uniform terms to all holders of shares of common stock at a record date of which not less than two weeks prior public notice must be given. Each of the shareholders to whom subscription rights is given must also be given at least two
weeks prior notice of the date on which the rights expire.

Stock Acquisition Rights

We may issue stock acquisition rights (shinkabu-yoyakuken). Holders of stock acquisition rights are entitled to acquire shares from
us upon payment of the applicable exercise price and subject to other terms and conditions thereof. We may also issue bonds with stock acquisition rights (shinkabu-yoyakuken-tsuki-shasai). The issuance of stock acquisition rights and bonds
with stock acquisition rights may be authorized by the board of directors unless it is made under specially favorable conditions, as described in Voting Rights.

Record Date

March 31 is the record date for the payment of year-end dividends and the determination of shareholders entitled to vote at the annual general meeting of shareholders. September 30 is the record
date for payment of interim dividends. In addition, by a resolution of the board of directors and after giving at least two weeks prior public notice, we may at any time set a record date in order to determine the shareholders who are entitled
to certain rights pertaining to the common stock.



141



---

##### Table of Contents

Under the Book-Entry Transfer Act, we are required to give notice of each record date to
JASDEC at least two weeks prior to such record date. JASDEC is required to give us notice of the names and addresses of our shareholders, the numbers of shares held by them, and other relevant information at a record date promptly after we set it.

Our Acquisition of Our Own Shares of Common Stock

We may acquire shares of our common stock (1) by way of purchase on any Japanese stock exchange on which shares of our common stock are
listed, or by way of tender offer (in either case, pursuant to an ordinary resolution of a general meeting of shareholders or a resolution of the board of directors), (2) from a specific shareholder other than any of our subsidiaries (pursuant to a
special resolution of a general meeting of shareholders), or (3) from any of our subsidiaries (pursuant to a resolution of the board of directors). In the case of (2) above, any other shareholder may make a request to a director, at least five days
prior to the relevant general meeting of shareholders, to include the shareholder as a seller in the proposed purchase. However, that right is not available if the purchase price or any other consideration to be received by the relevant specific
shareholder does not exceed the then market price of the shares to be purchased from the shareholder.

The total amount of the
purchase price of shares of common stock may not exceed the prescribed distributable amount, as described in Common StockRestriction on Distributions of Surplus.

We may hold the shares of common stock acquired, and may generally dispose of or cancel those shares by resolution of the board of
directors.

Disposal of Shares of Our Common Stock Held by Shareholders Whose Location Is Unknown

We are not required to send notices to a shareholder if notices have failed to arrive for five consecutive years or more at his or her
address in our register of shareholders unless we are notified of a new address. If the shareholder also fails to receive distributions of surplus on the shares for five or more consecutive years at his or her address in our register of shareholders
or otherwise as specified, then we may in general dispose of those shares at their then-market price and hold or deposit the proceeds of that disposal on behalf of that shareholder.

Preferred Stock

The following is a summary of information concerning provisions of our articles of incorporation.

General

At the date of this annual report, under our articles of
incorporation, we are authorized to issue 167,000 shares of Type 5 preferred stock, 167,000 shares of Type 7 preferred stock, 115,000 shares of Type 8 preferred stock and 115,000 shares of Type 9 preferred stock. In June 2013, our articles of
incorporation were amended to delete the provisions regarding Type 6 preferred stock, as these provisions have become unnecessary.

In March 2005, we issued 70,001 shares of our 1st series Type 6 preferred stock for an aggregate issue price of ¥210 billion. The Type 6 preferred stock was allocated using a third-party allocation of
shares at a price of ¥3,000,000 per share, ¥1,500,000 of which was accounted for as stated capital. Sumitomo Life Insurance Company acquired 23,334 shares, Nippon Life Insurance Company acquired 20,000 shares, Mitsui Life Insurance Company,
Limited acquired 16,667 shares and Mitsui Sumitomo Insurance Company, Limited acquired 10,000 shares. On April 1, 2011, we acquired and cancelled all of the outstanding 1st series Type 6 preferred stock.

At the date of this annual report, we have no preferred stock outstanding. The following is a summary of the relevant provisions of our
articles of incorporation regarding preferred stock.



142



---

##### Table of Contents

Preferred Dividends

Our articles of incorporation provide that, if we pay dividends, we must pay cash dividends to holders of shares of our preferred stock in
preference to the holders of our common stock. If preferred interim dividends stipulated in our articles of incorporation were paid during the relevant fiscal year, the amount of the preferred interim dividends shall be subtracted from the amount of
annual preferred dividends.

Our failure to declare annual preferred dividends in full in respect of any fiscal year on a
series of preferred stock gives the holders of that preferred stock certain voting rights.

Liquidation Rights

In the event of our voluntary or involuntary liquidation, holders of our preferred stock will be entitled, equally in rank
as among themselves and in preference over shares of our common stock, to receive out of our residual assets upon liquidation a distribution of ¥3,000,000 per share.

Preferred stockholders are not entitled to any further dividends or other participation or distribution of our residual assets upon our liquidation.

Voting Rights

Our articles of incorporation provide that holders of preferred stock are only entitled to receive notice of, and to vote at, a general meeting of shareholders;



| |  |  | from the commencement of our annual general meeting of shareholders if an agenda for approval to declare a preferred dividend is not submitted to the
meeting; or
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | from the close of our annual general meeting of shareholders if a proposed resolution to declare a preferred dividend is not approved at the meeting.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------

In both cases, these rights of our preferred stockholders lapse when a resolution of a general meeting of
shareholders declaring a preferred dividend is approved.

The Companies Act provides that a separate resolution of a meeting
of the holders of the preferred stock is required in order to approve certain matters which would prejudice their interests, including;



| |  |  | amendments to the articles of incorporation to add new classes of shares to be issued, alter the terms of the shares or increase the number of shares
or authorized number of any class of shares, with certain exceptions;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | consolidations or splits of shares;
| | - |  | -----------------------------------



| |  |  | dividends of shares or stock acquisition rights to shareholders without any consideration;
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | grants of preemptive rights for new shares or stock acquisition rights;
| | - |  | -----------------------------------------------------------------------



| |  |  | amalgamations or mergers;
| | - |  | -------------------------



| |  |  | certain corporate splits;
| | - |  | -------------------------



| |  |  | share exchanges;
| | - |  | ----------------



| |  |  | share transfers; and
| | - |  | --------------------



| |  |  | other matters set forth in the articles of incorporation.
| | - |  | ---------------------------------------------------------

Except for the amendments described above, the articles of incorporation may expressly permit certain of the above matters to be approved without a separate resolution. Our articles of incorporation do
not include that express permission.



143



---

##### Table of Contents

Ranking

If issued, the outstanding shares of our preferred stock would rank pari passu with each other as to participation in our profits or assets, including dividends and distributions of residual assets
upon our liquidation.

Unless holders of our preferred stock give approval, we may not create or issue any other shares
ranking in priority in terms of the right to receive distributions of surplus or the right to receive distributions of residual assets or otherwise in priority to the preferred stock already issued. However, without obtaining the consent of holders
of the preferred stock, we may issue other preferred stock rankingpari passu with the preferred stock already issued as to the order of participation in our profits or assets, carrying rights to preferred dividends, or terms of conversion
that our board of directors may determine, subject to limitations set forth in our articles of incorporation and the Companies Act.

Purchase or Redemption of Preferred Stock

Subject to the requirements of
the Companies Act, we may purchase out of our prescribed distributable amounts any shares of our preferred stock outstanding at any time and cancel that preferred stock. In June 2013, we amended our articles of incorporation in order to qualify our
preferred stock for inclusion in our regulatory capital in accordance with the new FSA capital adequacy guidelines based on the Basel III framework. Under the amended articles of incorporation, we will acquire our outstanding preferred stock without
consideration or in exchange for common stock if we become non-viable.

Mandatory Redemption Provisions and Sinking Fund
Provisions

Our articles of incorporation do not provide any mandatory redemption provisions and sinking fund provisions.

Stock Splits

Our articles of incorporation provide that no stock split shall be made to the preferred stock unless otherwise provided for in any law or regulation.

Subscription Rights

Our articles of incorporation provide that we shall not grant holders of preferred stock any right to subscribe for new shares or stock acquisition rights.

Conditions to Change Shareholders Rights

Our articles of incorporation do not specify what actions or quorums are required to change the rights of holders of our stock.

General Meeting of Shareholders

Our annual general meeting of shareholders
is held within three months after the end of each fiscal year. In addition, we may hold an extraordinary general meeting of shareholders whenever necessary. Notice of a general meeting of shareholders stating the place, the time and the purpose
thereof, and certain matters set forth in the Companies Act and in ordinances of the Ministry of Justice, must be given to each holder of shares of common stock with voting rights (or to the standing proxy or mailing address in Japan of a
nonresident shareholder) at least two weeks prior to the date set for the meeting. The record date for an annual general meeting of shareholders is March 31 of each year.

Any shareholder or group of shareholders holding at least three percent of the total outstanding voting rights, for a continuous period of six months or longer, may require the convocation of a general
meeting of



144



---

##### Table of Contents

shareholders for a particular purpose. Unless such a general meeting of shareholders is convened promptly, or a convocation notice of a meeting which is to be held not later than eight weeks from
the day of such demand is dispatched, the requiring shareholders may, upon obtaining court approval, convene such general meeting of shareholders.

Any shareholder holding at least 300 voting rights or one percent of our total number of voting rights for six months or longer may propose a matter to be considered at a general meeting of shareholders
by submitting a written request to a director at least eight weeks prior to the date of the meeting. Any of the minimum percentages, time periods and number of voting rights necessary for exercising the minority shareholder rights described above
may be decreased or shortened if our articles of incorporation so provide. Our articles of incorporation currently do not include any of those provisions.

To attend a general meeting of shareholders in person or by proxy, shareholders must provide proof of identity upon request. Shareholders may appoint a proxy by a written power of attorney for the
meeting. Such proxy must be one of our shareholders with voting rights.

Limitations on the Rights to Hold Our Common Stock by Foreign
Investors

There are no specific limitations imposed by the laws of Japan, our articles of incorporation, or our other
constituent documents, on the rights of nonresidents or foreign shareholders to hold or exercise voting rights on our shares of common stock or preferred stock. For additional information, See Common StockVoting Rights.

Anti-Change in Control Provisions

There is no provision in our articles of incorporation that would have the effect of delaying, deferring or preventing a change in control of us, and that would operate only with respect to a merger,
consolidation, acquisition or corporate restructuring involving us.

Provisions Governing Changes in the Companys Capital

We have no conditions more stringent than are required by law imposed by our articles of incorporation governing changes
in capital.

10.C.    MATERIAL CONTRACTS

All contracts that we are currently a party to, or were a party to during our two most recently completed fiscal years up to the date of
this annual report, were entered into in the ordinary course of business or were otherwise immaterial.

10.D.    EXCHANGE CONTROLS

Japanese Foreign Exchange Regulations

The Foreign Exchange and Foreign Trade Act of Japan, and the cabinet orders and ministerial ordinances, collectively known as the Foreign
Exchange Act, set forth, among other things, the regulations relating to the receipt by nonresidents of Japan of payment with respect to our shares, and the acquisition and holding of our shares by nonresidents of Japan and foreign investors, both
as defined below.

Nonresidents of Japan are individuals who are not residents in Japan and corporations whose principal
offices are located outside Japan. Generally, branches and offices of nonresident corporations located in Japan are regarded as residents of Japan while the branches and offices of Japanese corporations located outside Japan are regarded as
nonresidents of Japan.



145



---

##### Table of Contents

Foreign investors are defined as:



| |  |  | individuals not residing in Japan;
| | - |  | ----------------------------------



| |  |  | corporations which are organized under the laws of foreign countries or whose principal offices are located outside Japan;
| | - |  | --------------------------------------------------------------------------------------------------------------------------



| |  |  | corporations of which 50% or more of the voting rights are held, directly or indirectly, by individuals not residing in Japan and/or corporations which
are organized under the laws of foreign countries or whose principal offices are located outside Japan; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | corporations, a majority of officers (or a majority of officers having the power of representation) of which are individuals not residing in Japan.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------

Acquisition of Shares

In general, a nonresident who acquires our shares from a resident of Japan is not subject to any prior filing requirement, although the Foreign Exchange Act authorizes the Minister of Finance of Japan and
the Ministers responsible for the business to require a prior submission for any such acquisition in certain limited circumstances.

If a foreign investor acquires shares of our common stock, and, together with parties who have a special relationship with such foreign investor, holds 10% or more of the issued shares of our common stock
as a result of the acquisition, the foreign investor must file a report of the acquisition with the Minister of Finance and any other competent minister by the fifteenth day of the month immediately following the month to which the date of such
acquisition belongs.

Except for the general limitation under Japanese antitrust and antimonopoly regulations against
shareholdings in the capital stock of a Japanese corporation, which lead or may lead to a restraint of trade or monopoly, and general limitations under the Companies Act or our articles of incorporation on the rights of shareholders applicable,
regardless of residence or nationality, there is no limitation under Japanese law and regulations applicable to us, or under our articles of incorporation on the rights of nonresident or foreign shareholders to hold or exercise voting rights on our
shares.

Dividends and Proceeds of Sale

Under the Foreign Exchange Act, dividends paid on, and the proceeds of sales in Japan of, shares held by nonresidents of Japan, may, in general, be converted into any foreign currency and repatriated
abroad. The acquisition of our shares by nonresidents by way of a stock split is not, in general, subject to any notification or reporting requirements.

10.E.    TAXATION

Japanese Taxation

The following is a summary of the principal Japanese national tax consequences to owners of shares of our common stock or
ADSs representing shares of our common stock who are Nonresident Shareholders. The statements regarding Japanese tax laws set forth below are based on the laws and treaties currently in force and as interpreted by the Japanese tax authorities at the
date of this annual report and are subject to changes in the applicable Japanese law or tax treaties, conventions or agreements, or in the interpretation thereof, occurring after that date. This summary does not include all possible tax
considerations which may apply to a particular investor and potential investors are advised to satisfy themselves as to the overall tax consequences of the acquisition, ownership and disposition of shares of our common stock or ADSs, including
specifically the tax consequences under Japanese law, the laws of the jurisdiction of which they are resident, and any tax treaty, convention or agreement between Japan and their country of residence, by consulting their own tax advisors.



146



---

##### Table of Contents

For the purpose of Japanese taxation, a Nonresident Shareholder of ADSs will generally be
treated as the owner of the shares underlying the ADSs, which may be evidenced by one or more American Depositary Receipts (ADRs).

Generally, a Nonresident Shareholder of shares of our common stock or ADSs will be subject to Japanese income tax collected by way of withholding on dividends we pay. Stock splits are, in general, not
subject to Japanese income tax or corporation tax.

In the absence of any applicable tax treaty, convention or agreement
reducing the maximum rate of Japanese withholding tax or allowing exemption from Japanese withholding tax, the rate of Japanese withholding tax applicable to dividends paid by a Japanese corporation to Nonresident Shareholders is generally 20.42%.
However, with respect to dividends paid on listed shares issued by a Japanese corporation (including shares of our common stock or ADSs) to Nonresident Shareholders, except for any individual shareholder who owns 3% or more of the total number of
shares issued by the relevant Japanese corporation, the aforementioned 20.42% withholding tax rate is reduced to 15.315% for dividends due and payable on or before December 31, 2037. Due to the imposition of a special additional withholding tax
(2.1% of the original withholding tax amount) to secure funds for reconstruction from the Great East Japan Earthquake, the original withholding tax rate of 15% and 20%, as applicable, has been effectively increased, respectively, to 15.315% and
20.42%, during the period beginning on January 1, 2013 and ending on December 31, 2037.

At the date of this annual report,
Japan has income tax treaties in force, whereby the above-mentioned withholding tax rate is reduced, generally, to 15% for portfolio investors, with, among others, Belgium, Canada, Denmark, Finland, Germany, Ireland, Italy, Luxembourg, New Zealand,
Norway, Singapore and Spain, while the income tax treaties with, among others, Australia, France, Hong Kong, the Netherlands, Portugal, Sweden, Switzerland, the United Kingdom and the United States generally reduce the withholding tax rate to 10%
for portfolio investors. In addition, under the income tax treaty between Japan and the United States, dividends paid to pension funds which are qualified U.S. residents eligible to enjoy treaty benefits are exempt from Japanese income taxation by
way of withholding or otherwise unless the dividends are derived from the carrying on of a business, directly or indirectly, by those pension funds. Under the income tax treaties with the Netherlands, Switzerland and the United Kingdom, similar
treatment will be applied to dividends. Under Japanese tax law, any reduced maximum rate applicable under a tax treaty will be available when the maximum rate is below the rate otherwise applicable under Japanese tax law referred to in the preceding
paragraph with respect to the dividends to be paid by us on shares of common stock or ADSs. A Nonresident Shareholder of shares of our common stock who is entitled, under any tax treaty, to a reduced rate of Japanese withholding tax, or exemption
therefrom, as the case may be, is required to submit an Application Form for Income Tax Convention Regarding Relief from Japanese Income Tax and Special Income Tax for Reconstruction on Dividends (together with any other required forms and
documents) in advance, through the withholding agent, to the relevant tax authority before payment of dividends. A standing proxy for a Nonresident Shareholder may provide the application services. See Item 10.B. Memorandum and Articles of
IncorporationCommon StockGeneral. In addition, a simplified special filing procedure is available for Nonresident Shareholders to claim treaty benefits of exemption from or reduction of Japanese withholding tax by submitting a
Special Application Form for Income Tax Convention Regarding Relief from Japanese Income Tax and Special Income Tax for Reconstruction on Dividends of Listed Stocks (together with any other required forms and documents). With respect to ADSs, this
reduced rate or exemption will be applicable to Nonresident Shareholders of ADSs if the Depositary or its agent submits two Application Forms (one before payment of dividends and the other within eight months after the record date concerning such
payment of dividends), together with certain other documents. To claim this reduced rate or exemption, Nonresident Shareholders of ADSs will be required to file a proof of taxpayer status, residence and beneficial ownership, as applicable, and to
provide other information or documents as may be required by the Depositary. A Nonresident Shareholder who is entitled, under any applicable tax treaty, to a reduced rate of Japanese withholding tax below the rate otherwise applicable under Japanese
tax law mentioned above, or exemption therefrom, as the case may be, but fails to submit the required application in advance may nevertheless be entitled to claim a refund from the relevant Japanese tax authority of withholding taxes withheld in
excess of the



147



---

##### Table of Contents

rate under an applicable tax treaty (if the Nonresident Shareholder is entitled to a reduced treaty rate under the applicable tax treaty) or the full amount of tax withheld (if the Nonresident
Shareholder is entitled to an exemption under the applicable tax treaty), as the case may be, by complying with certain subsequent filing procedures. We do not assume any responsibility to ensure withholding at the reduced treaty rate, or exemption
therefrom, for shareholders who would be so eligible under an applicable tax treaty but where the required procedures as stated above are not followed.

Gains derived from the sale outside Japan of shares of our common stock or ADSs by a Nonresident Shareholder who is a portfolio investor are, in general, not subject to Japanese income tax or corporation
tax.

Any deposits or withdrawals of shares of our common stock by a Nonresident Shareholder in exchange for ADSs are, in
general, not subject to Japanese income or corporation tax.

Japanese inheritance and gift taxes at progressive rates may be
payable by an individual who has acquired shares of our common stock or ADSs from another individual as a legatee, heir or donee, even if the individual is not a Japanese resident.

Potential investors should consult with their own tax advisors regarding the Japanese tax consequences of the ownership and disposition
of shares of common stock or ADSs in light of their particular situations.

United States Federal Income Taxation

The following is a discussion of material U.S. federal income tax consequences to the U.S. Holders described below of owning and disposing
of shares or ADSs, but it does not purport to be a comprehensive description of all the tax considerations that may be relevant to a particular persons decision to hold the shares or ADSs. This discussion does not address U.S. state, local or
non-U.S. tax consequences. As used herein, a U.S. Holder is a beneficial owner of shares or ADSs that is, for U.S. federal income tax purposes: (1) a citizen or individual resident of the United States; (2) a corporation, or other entity taxable as
a corporation, created or organized in or under the laws of the United States, any state therein or the District of Columbia; or (3) an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.

The discussion applies only to U.S. Holders who hold the shares or ADSs as capital assets for U.S. federal income tax
purposes. The discussion does not address any alternative minimum or Medicare contribution tax consequences, nor does it address all of the tax consequences which may be applicable to special classes of holders, such as:



| |  |  | certain financial institutions;
| | - |  | -------------------------------



| |  |  | insurance companies;
| | - |  | --------------------



| |  |  | dealers and certain traders in securities;
| | - |  | ------------------------------------------



| |  |  | persons holding shares or ADSs as part of a hedge, straddle, conversion or other integrated transaction;
| | - |  | --------------------------------------------------------------------------------------------------------



| |  |  | persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | regulated investment companies;
| | - |  | -------------------------------



| |  |  | real estate investment trusts;
| | - |  | ------------------------------



| |  |  | partnerships or other entities classified as partnerships for U.S. federal income tax purposes;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | persons liable for the alternative minimum tax;
| | - |  | -----------------------------------------------



| |  |  | tax-exempt entities, individual retirement accounts or Roth IRAs;
| | - |  | ---------------------------------------------------------------------



| |  |  | persons who acquired our shares or ADSs pursuant to the exercise of an employee stock option or otherwise as compensation;
| | - |  | --------------------------------------------------------------------------------------------------------------------------



148



---

##### Table of Contents

| |  |  | persons holding shares or ADSs that own or are deemed to own 10% or more of our voting stock; or
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | persons holding shares or ADSs in connection with a trade or business conducted outside the United States.
| | - |  | ----------------------------------------------------------------------------------------------------------

If a partnership holds shares or ADSs, the tax treatment of a partner will generally depend upon the status of the partner and the
activities of the partnership. Partnerships holding shares or ADSs, and partners in such partnerships, should consult their own tax advisors.

This discussion is based on the Internal Revenue Code of 1986, as amended, administrative pronouncements, judicial decisions and final, temporary and proposed United States Treasury regulations, as well
as the double taxation treaty between Japan and the United States (Treaty) all as of the date hereof. These laws are subject to change, possibly on a retroactive basis. It is also based in part on representations by the Depositary and
assumes that each obligation under the Deposit Agreement and any related agreement or undertaking will be performed in accordance with its terms.

In general, a U.S. Holder who owns ADSs will be treated as the owner of the underlying shares represented by those ADSs for U.S. federal income tax purposes. Accordingly, no gain or loss will be
recognized if a U.S. Holder exchanges ADSs for the underlying shares represented by those ADSs.

The U.S. Treasury has
expressed concern that parties to whom ADSs are released before shares are delivered to the depositary, or intermediaries in the chain of ownership between holders and the issuer of the security underlying the ADSs, may be taking actions that are
inconsistent with the claiming of foreign tax credits by holders of ADSs. These actions would also be inconsistent with the claiming of the reduced rate of tax, described below, applicable to dividends received by certain noncorporate holders.
Accordingly, the creditability of Japanese taxes, and the availability of the reduced tax rate for dividends received by certain noncorporate U.S. Holders, each described below, could be affected by actions taken by such parties or intermediaries.

U.S. Holders should consult their own tax advisors concerning the U.S. federal, state, local and non-U.S. tax consequences of
owning and disposing of shares or ADSs in their particular circumstances.

This discussion assumes that we are not, and will
not become, a passive foreign investment company (a PFIC), as described below.

Taxation of Distributions

Distributions received by a U.S. Holder on shares or ADSs, including the amount of any Japanese taxes withheld, other
than certain pro rata distributions of shares, will constitute foreign-source dividend income to the extent paid out of our current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Because we do not
maintain calculations of our earnings and profits under U.S. federal income tax principles, we expect that distributions generally will be reported to a U.S. Holder as dividends. The amount of the dividend a U.S. Holder will be required to include
in income will equal the U.S. dollar value of the yen dividend, calculated by reference to the exchange rate in effect on the date the payment is received by the holder, or in the case of ADSs, by the Depositary, regardless of whether the payment is
converted into U.S. dollars on the date of receipt. If the dividend is converted into U.S. dollars on the date of receipt, the U.S. Holder generally should not be required to recognize foreign currency gain or loss in respect of the dividend
payment. A U.S. Holder may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date of receipt. Any foreign currency gain or loss realized by a U.S. Holder on a sale or other disposition of yen will be
U.S.-source ordinary income or loss. Corporate U.S. Holders will not be entitled to claim a dividends-received deduction with respect to our dividends. Subject to applicable limitations, and the discussion above regarding concerns expressed by the
U.S. Treasury, dividends received from us by certain noncorporate U.S. Holders may be taxable at favorable rates. Noncorporate U.S. Holders should consult their own tax advisors to determine whether they are subject to any special rules that limit
their ability to be taxed at these favorable rates.



149



---

##### Table of Contents

Subject to applicable restrictions and limitations that vary depending upon the U.S.
Holders circumstances and the discussion above regarding concerns expressed by the U.S. Treasury, Japanese taxes withheld from dividends on shares or ADSs (at a rate not exceeding the applicable rate provided by the Treaty, in the case of a
U.S. Holder who is eligible for the Treatys benefits) will be creditable against the U.S. Holders U.S. federal income tax liability. Instead of claiming a credit, a U.S. Holder may elect to deduct such Japanese taxes in computing its
taxable income, subject to generally applicable limitations. The limitation on foreign taxes eligible for credit is calculated separately with respect to two categories of income, passive income and general income. The rules governing foreign tax
credits are complex. U.S. Holders should consult their own tax advisors regarding the availability of foreign tax credits and deductions in their particular circumstances.

Sale and Other Disposition of the Shares or ADSs

A U.S. Holder will
generally recognize capital gain or loss on the sale or other disposition of shares or ADSs, which will be long-term capital gain or loss if the U.S. Holder has held the shares or ADSs for more than one year. The amount of the U.S. Holders
gain or loss will equal the difference between the amount realized on the sale or other disposition and the U.S. Holders tax basis in the shares or ADSs, each as determined in U.S. dollars. The deductibility of capital losses is subject to
limitations. Any gain or loss will generally be U.S.-source gain or loss for foreign tax credit purposes.

PFIC Rules

Based upon certain proposed Treasury regulations that are not yet in effect, but are generally proposed to become
effective for taxable years beginning after December 31, 1994, we believe that we were not a PFIC for U.S. federal income tax purposes for our taxable year ended March 31, 2016. However, since PFIC status depends upon the composition of our income
and assets and the market value of our assets from time to time, there can be no assurance that we will not be a PFIC for any taxable year. If we were a PFIC for any taxable year during which a U.S. Holder held shares, certain adverse U.S. federal
income tax consequences could apply to the U.S. Holder.

Information Reporting and Backup Withholding

Payments of dividends and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries may be subject to information reporting and backup withholding unless the U.S. Holder is an exempt recipient or, in the case of backup withholding, the U.S. Holder provides a
correct taxpayer identification number and certifies that no loss of exemption from backup withholding has occurred. The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a credit against the U.S. Holders U.S.
federal income tax liability and may entitle the U.S. Holder to a refund, provided that the required information is timely furnished to the Internal Revenue Service.

Certain U.S. Holders who are individuals (or entities closely held by individuals) may be required to report information relating to their ownership of an interest in certain foreign financial assets,
including stock of a non-U.S. person, generally on Form 8938, subject to exceptions (including an exception for stock held through a U.S. financial institution). U.S. Holders should consult their tax advisors regarding their reporting
obligations with respect to the shares or ADSs.

10.F.    DIVIDENDS AND
PAYING AGENTS

Not applicable.

10.G.    STATEMENT BY EXPERTS

Not applicable.



150



---

##### Table of Contents

10.H.    DOCUMENTS ON DISPLAY

We are subject to the reporting requirements of the Securities Exchange Act of 1934. In accordance with these
requirements, we file annual reports on Form 20-F and furnish periodic reports on Form 6-K with the SEC.

These materials,
including this annual report and the exhibits thereto, may be inspected and copied at the SECs Public Reference Room at Room 1580, 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the SECs
Public Reference Room by calling the SEC in the United States at 1-800-SEC-0330. The SEC also maintains a website at http://www.sec.gov that contains reports and proxy information regarding issuers that file electronically with the SEC. Some of the
information may also be found on our website at http://www.smfg.co.jp.

10.I.    SUBSIDIARY INFORMATION

Not applicable.



|Item 11. | Quantitative and Qualitative Disclosures about Credit, Market and Other Risk
|-------- | ----------------------------------------------------------------------------

Quantitative and Qualitative Information about Risk Management

Basic
Approach

As risks in the financial services industry increase in diversity and complexity, risk management
(identifying, measuring, and controlling risk) has never been more important in the management of a financial institution. We have established a basic approach to be employed in risk management and include these in the manual entitled Policies on
Comprehensive Risk Management. The fundamental principles are as follows:



| |  |  | Risk management on a Group-wide basis. Various risks taken at the Group companies are managed on a consolidated basis according to the nature of
their business and significance in conformity with the relevant laws and regulations.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Risk management based on quantification. The risks are quantitatively managed according to the relevant risk characteristics after specifying
the scope of quantification.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Ensuring consistency with the business strategy. Risk management is consistent with the business strategy.
| | - |  | ----------------------------------------------------------------------------------------------------------



| |  |  | System for check and balance. The risk management framework is developed to ensure effective check and balance function for business operations.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Measures for emergencies and critical situations. Necessary measures are developed by assuming situations and scenarios as to materialization of
risk which would have a significant impact on the business and financial management of the Group.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Verification of the actual situation. The actual risk management process is verified by the Internal Audit Unit.
| | - |  | ----------------------------------------------------------------------------------------------------------------

Types of Risk to Be Managed

We classify risk into the following categories:

Credit Risk. Credit risk
is the possibility of a loss arising from a credit event, such as deterioration in the financial condition of a borrower, that causes an asset (including off-balance sheet transactions) to lose value or become worthless.

Market Risk. Market risk is the possibility that fluctuations in interest rates, foreign exchange rates or stock prices will
change the market value of financial products, leading to a loss.



151



---

##### Table of Contents

Liquidity Risk. Liquidity risk is the risk that there may be difficulties in raising
funds needed for settlements, as a result of the mismatching of uses of funds and sources of funds or unexpected outflows of funds, which may make it necessary to raise funds at higher rates than normal.

Operational Risk (including Processing Risk and System Risk). Operational risk is the possibility of losses arising from
inadequate or failed internal processes, people, and systems or from external events.

Processing Risk. Processing risk
is the possibility of losses arising from negligent processing by employees, accidents or unauthorized activities.

System
Risk. System risk is the possibility of losses arising from failure, malfunction, or unauthorized use of computer systems.

Risk Management System

The Group-wide basic policies for risk management are determined by the Management Committee, which consists of designated board members, and they are authorized by the board of directors.

The policies also include fundamental principles for each risk category, which each Group company has to follow when establishing its own
risk management system. The Corporate Risk Management Department, in cooperation with the Corporate Planning Department, performs risk management according to the above policies. In addition, the Internal Audit Department is responsible for the
independent review of risk management within the Group.

Risk management systems are in place at individual Group companies
and they have been established in accordance with the Group-wide basic policies for risk management and implementation guidance provided by us. Based on these policies and guidance, each Group company implements guidelines and establishes processes
for risk management. On an ongoing basis, these processes and risks are monitored by us.

For example, at the Bank, specific
departments have been appointed to oversee the handling of the four risk categories listed above, in addition to the risks associated with settlement. Each risk category is managed taking into account the particular characteristics of that category.
In addition, the Risk Management Unit has been establishedindependent of the business unitsand the risk management system has been strengthened by consolidating the functions for managing riskscredit, market, liquidity, operational
and settlementinto the Risk Management Unit and enhancing our across-the-board risk monitoring ability. One board member is assigned to oversee the Risk Management Unit comprising the Corporate Risk Management Department and the Credit &
Investment Planning Department. The Corporate Risk Management Departmentthe units planning departmentseeks to manage all categories of risk in cooperation with the Corporate Planning Department. Moreover the Internal Audit
Unitindependent of all business unitsconducts periodic audits to ensure that the management system is functioning properly.

The decision-making process for addressing the risks at the operating level is also strengthened by the Credit Risk Management Committee and the Market Risk Management Committee, which are subcommittees
of the Management Committee of the Bank.

Integrated Risk Management

Risk Capital-Based Management

In order to maintain a balance between risk and return, we employ a risk capital-based management method. We measure risk capital based on value at risk (VaR), and other specific
measures as a uniform basic measures of credit, market and operational risks, taking into account the special characteristics of each type of risk and the business activities of each Group company.



152



---

##### Table of Contents

We then allocate risk capital to each unit to keep the total exposure to various risks
within the scope of our resources, i.e., capital. The allocation to each unit is determined by the Management Committee and authorized by the board of directors. In this framework, risk capital includes credit concentration risk and interest rate
risk in the banking book, which are taken into account under Pillar 2 of the Basel Capital Accord. In addition, we conduct risk capital-based management activities on a consolidated basis, including each Group company.

Liquidity risk is managed based on a framework consisting of setting upper limit for funding gaps, maintaining highly liquid
supplementary funding sources and establishing contingency plans. Other risk categories are managed with procedures closely attuned to the nature of the risk, as described in the following paragraphs.

Disclosures of the objectives, policies and processes to manage each risk and the methods used to measure each risk have been included in
Credit Risk, Market Risk and Liquidity Risk, Operational Risk, Processing Risk and System Risk and Other Risk.

Stress Tests

In the current volatile business environment, stress tests
are essential to analyze and estimate the effects of stress events brought about by the economic recession and market turbulence. When establishing our medium-term management plan or annual business plan, we conduct stress testing to appraise the
likely financial impact on the Group, so that we can prepare actions in advance to deal with emerging stress events as they occur.

Stress testing consists of four processes: scenario design, scenario setting, estimation of the impact on financial items, and reporting to the Management Committee and Board of Directors. In the scenario
design process, we create some scenarios such as a global economic slowdown or a sharp increase in Japanese government bond rates based on the economic environment and global trends at the time, including those on macroeconomic indicators such as
Japanese GDP, stock prices, interest rates and foreign exchange rates, via discussions of the future trends in the global situation with related departments. In the scenario setting process, the Risk Management Unit and the business units of the
Bank discuss the scenarios and the scenarios may be revised as necessary. In the estimation of the impact on financial items process, we estimate the financial impact under the scenarios and analyze their impact on financial items such as the common
equity Tier 1 ratios. After these three processes, the scenarios and impact on financial items are reported to the Management Committee and Board of Directors.

Furthermore, the Bank has in place a system enabling flexible control of operations at a time of sudden changes in its business environment. The Risk Management Unit and other relevant business units
regularly hold joint meetings in order to share understanding of macro-environment, assume hypothetical stress events that might affect our business operation, and consider appropriate responses to those stress events.

Risk Appetite Framework

We aim to fulfill our Group-wide management philosophy to maximize our shareholders value through the continuous growth of our business. To this end, we consider it important to
categorize and quantitatively determine the types and levels of risk we are willing to take on or tolerate to drive earnings growth (risk appetite), and secure an appropriate return. We have developed and implemented a risk appetite framework which
is recognized as being as important as business strategy in the Group. We have also formulated and distributed internally a document that sets out our approach and specific risk appetites.

Furthermore, to quantitatively grasp the risk appetite, we set risk appetite indicators from each category: financial soundness,
profitability, liquidity, credit, market and operational and others (including processing, system and compliance). The risk appetite indicators are decided and monitored by the Management Committee and the Board of Directors.



153



---

##### Table of Contents

Implementation of Basel Regulation

Basel III is an international agreement on minimum capital, leverage, liquidity and other requirements applicable to internationally
active banks. The Basel III capital framework was implemented in Japan from March 31, 2013 pursuant to revised capital adequacy guidelines adopted by the FSA, subject to the phase-in of some requirements, as contemplated by Basel III.

The framework of Basel III is a continuation of Basel II, with multiple approaches to calculating capital requirements; we adopted the
advanced IRB approach for credit risk from March 31, 2009, and the AMA for operational risk from March 31, 2008.

Details of
relevant initiatives are provided below, and detailed information on our capital ratio is provided in the discussion on Capital Ratio Information in Item 4.B. Business OverviewRegulations in JapanRegulations Regarding Capital
Adequacy and Liquidity and Item 5.B. Liquidity and Capital ResourcesCapital Management.

Credit Risk

Credit risk is the risk of incurring losses from decline or loss of the value of an asset (including off-balance sheet
items) that is caused by a credit event including but not limited to the deterioration of financial condition of a borrower. Overseas credits transactions also entail country risk, which is closely related to credit risk. Country risk is the risk of
incurring losses caused by changes in political or economic conditions. Credit exposures arise primarily from lending activities such as loans and advances, acquiring investment securities, derivative transactions, and off-balance sheet transactions
such as unused portion of loan commitments.

Credit Risk Management System

Credit risk is the most significant risk to which we are exposed. The purpose of credit risk management is to keep the credit risk
exposure to a permissible level relative to capital, to maintain the quality of assets and to ensure returns commensurate with risk.

On the basis of Group-wide basic policies for risk management, our Group companies follow the fundamental principles established by us to assess and manage credit risk. Each of our Group companies manages
credit risk according to the nature of its business, and assesses and manages the credit risks of individual loans and credit portfolios quantitatively, using consistent standards.

At the Bank, our significant banking subsidiary, the Credit & Investment Planning Department within the Risk Management Unit is
responsible for the comprehensive management of credit risk. This department drafts and administers credit policies, the internal rating system, credit authority guidelines, and credit application guidelines, and manages NPLs, including impaired
loans, and other aspects of credit portfolio management. The department also cooperates with the Corporate Risk Management Department in quantifying credit risk (risk capital and risk-weighted assets) and controls the Banks entire credit risk.
Further, the Credit Portfolio Management Department within the Credit & Investment Planning Department strives to stabilize the credit portfolio and manage the risk through credit derivatives, loan asset sales and other instruments.

The credit departments within each business unit conduct credit risk management for loans handled by their units and manage their
units portfolios. The credit limits they use are based on the baseline amounts that the Credit & Investment Planning Department establishes for each grading category, with particular attention paid to evaluating and managing customers or
loans perceived to have particularly high credit risk. The Corporate Research Department engages in research on industries and analyzes the business and financial conditions of borrower enterprises to detect early signs of problems or growth
potential.



154



---

##### Table of Contents

The Credit Administration Department is responsible for handling NPLs of borrowers
classified as potentially bankrupt or lower, and formulates plans for workouts, including write-offs, and corporate rehabilitation. The department closely liaises with SMBC Servicer Co., Ltd., our Group company, which engages in related services to
efficiently reduce the amount of NPLs, including through the sale of loans.

The Internal Audit Unit, operating independently
of the business units, audits asset quality, accuracy of grading and state of credit risk management, and reports the results directly to the board of directors and the Management Committee.

The Bank has established the Credit Risk Committee to undertake control of credit risk and to ensure the overall soundness of the loan
operations.

Credit Risk Management Methods

To effectively manage the risk involved in individual loans as well as its credit portfolio as a whole, the Bank first acknowledges that
every loan entails credit risk, assesses the credit risk posed by each borrower and loan using an internal rating system, and quantifies that risk for control purposes.

Credit Risk Evaluation

The Credit & Investment Planning Department
manages an internal rating system for each asset control category set according to portfolio characteristics. For example, credits to commercial and industrial (C&I) companies, individuals for business purposes (domestic only),
sovereigns, public sector entities, and financial institutions are assigned an obligor grade, which indicates the borrowers creditworthiness, and/or facility grade, which indicates the collectability of assets taking
into account the transaction conditions such as guarantee/collateral, and tenor. The business units determine an obligor grade by first assigning a financial grade using a financial strength grading model and data obtained from the obligors
financial statements, including net worth and cash flows. The financial grade is then adjusted taking into account the actual state of the obligors financial position and qualitative factors to derive the obligor grade. The qualitative factors
mainly include the expected future cash flows taking into account factors such as historical loss information, the appropriateness of the borrowers business plan or operational improvement plan, the status of progress of its plan, and the
overall support from financial institutions. In the event that the borrower is domiciled overseas, internal ratings for credit are made after taking into consideration the country rank, which represents an assessment of the credit quality of each
country based on its political and economic situation, as well as its current account balance and external debt. Obligor grades and facility grades are reviewed once a year and as otherwise necessary, such as when there are changes in the credit
situation. Our subsidiaries carry out credit risk evaluations in line with the Bank.

There are also grading systems for loans
to individuals such as housing loans and structured finance including project finance, where the repayment source is limited to the cash flows generated by a particular business or asset. For example, the obligor grade of housing loans is determined
taking into account various relevant factors such as proportion of the repayment to revenue, proportion of down payment to the value and past due information.

The Credit & Investment Planning Department centrally manages the internal rating systems, and designs, operates, supervises and validates the grading models. It validates the grading models
(including statistical validation) of main assets following the procedure manual once a year to ensure their effectiveness and suitability.

Quantification of Credit Risk

Credit risk quantification refers to the
process of estimating the degree of credit risk of a portfolio or individual loan taking into account not just the obligors PD, but also the concentration of risk in a specific customer or industry and the loss impact of fluctuations in the
value of collateral, such as real estate and securities.



155



---

##### Table of Contents

Specifically, the PD by grade, loss given default (LGD), credit quality
correlation among obligors, and other parameter values are estimated using the historical data of obligors and facilities stored in a database to calculate the credit risk. Then, based on these parameters, the Bank runs a simulation of simultaneous
default using the Monte Carlo Simulation to calculate the Banks maximum loss exposure to the estimated amount of the maximum losses that may be incurred. Based on these quantitative results, the Bank allocates risk capital.

Risk quantification is also executed for purposes such as to determine the portfolios risk concentration or to simulate economic
movements (stress tests), and the results are used for making optimal decisions across the whole range of business operations, including formulating business plans and providing a standard against which individual credit applications are assessed.

Credit Assessment

At the Bank, the credit assessment of corporate loans involves a variety of financial analyses, including cash flows, to predict an enterprises capability of loan repayment and its growth prospects.
These quantitative measures, when combined with qualitative analyses of industrial trends, the enterprises research and development capabilities, the competitiveness of its products or services, and its management caliber, result in a
comprehensive credit assessment. The loan application is analyzed in terms of the intended utilization of the funds and the repayment schedule. In the assessment of housing loans for individuals, the Bank employs a credit assessment model based on
credit data amassed and analyzed by the Bank over many years, taking into account various relevant factors including proportion of the repayment to revenue, proportion of down payment to the value and past due information.

Credit Monitoring

At the Bank, in addition to analyzing loans at the application stage, the Credit Monitoring System is utilized to reassess obligor grades, and review credit policies for each obligor so that problems can
be detected at an early stage, and quick and effective action can be taken. The system includes annual monitoring that is carried out each time the financial results of the obligor enterprise are obtained, as well as ad-hoc monitoring that is
performed each time credit conditions change.

Credit Portfolio Management

Risk-Taking Within the Scope of Capital

To keep the credit risk exposure to a permissible level relative to capital, the Banks Corporate Risk Management Department sets a credit risk capital limit for internal control purposes. Under this
limit, sub-limits are set for each business unit. The Corporate Risk Management Department conducts monthly monitoring to make sure that these limits are being followed.

Controlling Concentration Risk

Once the credit concentration risk is
realized, the equity capital of the Bank may be materially impaired. The Banks Credit & Investment Planning Department therefore takes measures to manage concentration risks, such as introducing large exposure limits and conducting
intensive loan reviews for obligors with large exposures, with an increased focus on industrial sectors with an excessive concentration of credit risk. Further, to manage country risk, the Credit Management Department of the International Banking
Unit has credit limit guidelines based on each countrys creditworthiness.

Toward Active Portfolio Management

The Banks Credit Portfolio Management Department makes use of credit derivatives, loan asset sales, and other
instruments to proactively and flexibly manage its portfolio to stabilize credit risk.



156



---

##### Table of Contents

Market Risk and Liquidity Risk

Market risk is the possibility that fluctuations in interest rates, foreign exchange rates, stock prices or other market prices will
change the market value of financial products, leading to a loss. The purpose of market risk management is to keep the market risk exposure to a permissible level relative to capital.

Liquidity risk is defined as the uncertainty around our ability to meet our debt obligations without incurring unacceptably large losses.
An example of such risk is the possible inability to meet our current and future cash flow/collateral needs, both expected and unexpected. In such cases, we may be required to raise funds at less than favorable rates or be unable to raise sufficient
funds for settlement. The purpose of liquidity risk management is to ensure that we are in a position to address its liquidity obligations through monitoring the liquidity gap between assets and liabilities, and maintaining highly liquid
supplementary funding resources.

On the basis of the Group-wide basic policies for risk management, we have a quantitative
management process to control market and liquidity risks on a Group-wide basis by setting allowable risk limits by company. We at least annually review and identify which companies primarily carry the market and liquidity risks within the Group. We
set permissible levels and upper limits of risk for each identified company in consideration of those companies business plans. We ensure that each identified company establishes a risk management system that is appropriate to the risks it
faces, and has built-in transparent risk management processes, clearly separating front office, middle office and back office operations, and establishing a control system of mutual checks and balances.

Framework for Market and Liquidity Risk Management

The board of directors authorizes important matters relating to the management of market and liquidity risks, such as the basic policies and risk limits, which are decided by the Management Committee.

Additionally, at the Bank, the Corporate Risk Management Department manages market and liquidity risks in an integrated
manner. The Corporate Risk Management Department is the planning department of the Risk Management Unit, which is independent of the business units that directly handle market transactions, and not only monitors the current risk situations but also
reports regularly to the Management Committee and the board of directors. Furthermore, the Banks Asset Liability Management (ALM) Committee meets on a monthly basis to examine reports on the state of observance of the Banks
limits on market and liquidity risks and to review and discuss the Banks ALM operations.

To prevent unforeseen
processing errors as well as fraudulent transactions, it is important to establish a system of checks on the business units (front office). At the Bank, both the processing departments (back office) and the administrative departments (middle office)
conduct the checks. In addition, the Internal Audit Unit of the Bank periodically performs internal audits to verify that the risk management framework is functioning properly.

Market Risk Management Methods

Market Risk Management Process

We manage market risk from trading
activities and non-trading activities, including strategic equity investment and other transactions within the risk capital limit, which is determined taking into account our shareholders equity and other principal indicators of our financial
position. We also establish an upper limit on VaR and losses within the risk capital limits.

Our market risk can be divided
into various factors: interest rates, foreign exchange rates, equity prices and option risks. We manage each of these risks employing the VaR method as well as supplemental indicators suitable for managing each risk, such as the basis point value
(BPV).



157



---

##### Table of Contents

VaR is the largest predicted loss that is possible given a fixed confidence interval. For
example, our VaR indicates the largest loss that is possible for a holding period of one day and a confidence interval of 99.0%. BPV is the amount of change in assessed value as a result of a one-basis-point (0.01%) movement in interest rates.

Market Risk Measurement TechniquesValue at Risk

The principal Group companies internal VaR model makes use of historical data to prepare scenarios for market fluctuations and, by
conducting simulations of gains and losses on a net position basis, the model estimates the maximum losses that may occur. The VaR calculation method we employ for both trading and non-trading activities is based mainly on the following:



| |  |  | the historical simulation method;
| | - |  | ---------------------------------



| |  |  | a one-sided confidence interval of 99.0%;
| | - |  | -----------------------------------------



| |  |  | a one-day holding period (a one-year holding period for the strategic equity investment portfolio); and
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | an observation period of four years (ten years for the strategic equity investment portfolio).
| | - |  | ----------------------------------------------------------------------------------------------

The relationship between the VaR calculated with the model and the actual profit and loss data is back-tested periodically. The
back-testing results for the Groups trading accounts during the fiscal year ended March 31, 2016 are shown below. A data point below the diagonal line indicates a loss in excess of the predicted VaR for that day; however, there were no
significant excess losses as with the previous year. This demonstrates that the Groups VaR model, with a one-sided confidence interval of 99.0%, is sufficiently reliable.

Back-Testing Results (Trading BookSMFG consolidated)

Marginal Profit or Loss (in ¥100 million)



LOGO

VaR (in ¥100 million)



158



---

##### Table of Contents

Trading Activities

Most of our trading activity is undertaken to accommodate the needs of commercial banking customers for interest rate and foreign exchange
transactions. However, some interest rate and foreign exchange rate positions are taken using derivatives and other on-balance sheet instruments with the objective of earning a profit from favorable movements in market rates. The overall objective
of managing market risk is to avoid unexpected losses due to changes in market prices.

Non-trading Activities

The market risk for non-trading activity arises principally from the interest rate risk of our ALM operations, or banking,
including loans, debt investment securities, deposits, and long- and short-term borrowings, and from the equity risk of our strategic investments. ALM operations are regularly reviewed and discussed by the ALM Committee so as not to be heavily
exposed to market fluctuations. Strategic equity investment is a portfolio that consists principally of publicly traded Japanese equities. This portfolio, like that of other financial institutions in Japan, has historically included shares of our
customers.

VaR Summary for the Fiscal Years Ended March 31, 2016 and 2015

The following tables show our VaR by risk category and these figures are prepared based on the internal reporting provided to management.

Our material market risk exposure categories consist of interest rate risk, foreign exchange risk, equities and commodities
risk and others. The section headed VaR for Trading Activity shows our VaR for instruments entered into for trading purposes and the VaR model for the trading book includes principal consolidated subsidiaries. The section headed
VaR for Non-Trading Activity shows our VaR for instruments entered into for purposes other than trading purposes. Strategic Equity Investment in the VaR for Non-Trading Activity section is a portfolio that
consists principally of publicly traded Japanese equities. This portfolio, like that of other financial institutions in Japan, has historically included shares of our customers.

VaR for Trading Activity

The aggregate VaR for our total trading activities at March 31, 2016 was ¥11.0 billion, a decrease from ¥14.5 billion at March 31, 2015 primarily due to a decrease in the net risk
exposure of equities.



|                                          |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|----------------------------------------- |  | ----------------- | ---- |  | -------------------- | - | --- | --------------------------- |  | - | ------ |  |  | -------- | --- |  |  | - | ---- | 
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2016: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 15.8 |  |                      | ¥ | 3.7 |                             |  | ¥ | 5.9    |  |  | ¥        | 1.7 |  |  | ¥ | 21.4 | 
|Minimum                                   |  |                   | 6.3  |  |                      |   | 0.3 |                             |  |   | 0.5    |  |  |          | 0.8 |  |  |   | 8.6  | 
|Daily average                             |  |                   | 10.0 |  |                      |   | 1.4 |                             |  |   | 1.8    |  |  |          | 1.2 |  |  |   | 13.3 | 
|At March 31, 2016                         |  |                   | 7.6  |  |                      |   | 1.1 |                             |  |   | 1.1    |  |  |          | 1.3 |  |  |   | 10.4 | 
|                                          |  |                   |      |  |                     
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 16.5 |  |                      | ¥ | 3.7 |                             |  | ¥ | 6.2    |  |  | ¥        | 1.7 |  |  | ¥ | 22.5 | 
|Minimum                                   |  |                   | 7.0  |  |                      |   | 0.3 |                             |  |   | 0.7    |  |  |          | 0.8 |  |  |   | 9.6  | 
|Daily average                             |  |                   | 10.6 |  |                      |   | 1.4 |                             |  |   | 2.0    |  |  |          | 1.2 |  |  |   | 14.2 | 
|At March 31, 2016                         |  |                   | 8.1  |  |                      |   | 1.1 |                             |  |   | 1.2    |  |  |          | 1.3 |  |  |   | 11.0 | 



159



---

##### Table of Contents

|                                          |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|----------------------------------------- |  | ----------------- | ---- |  | -------------------- | - | --- | --------------------------- |  | - | ------ |  |  | -------- | --- |  |  | - | ---- | 
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2015: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 11.9 |  |                      | ¥ | 3.6 |                             |  | ¥ | 9.6    |  |  | ¥        | 1.1 |  |  | ¥ | 19.0 | 
|Minimum                                   |  |                   | 4.6  |  |                      |   | 0.7 |                             |  |   | 3.1    |  |  |          | 0.6 |  |  |   | 8.9  | 
|Daily average                             |  |                   | 6.7  |  |                      |   | 1.7 |                             |  |   | 5.9    |  |  |          | 0.8 |  |  |   | 13.9 | 
|At March 31, 2015                         |  |                   | 6.5  |  |                      |   | 1.3 |                             |  |   | 5.9    |  |  |          | 1.0 |  |  |   | 13.8 | 
|                                          |  |                   |      |  |                     
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 12.5 |  |                      | ¥ | 3.6 |                             |  | ¥ | 9.9    |  |  | ¥        | 1.1 |  |  | ¥ | 20.2 | 
|Minimum                                   |  |                   | 5.4  |  |                      |   | 0.7 |                             |  |   | 3.2    |  |  |          | 0.6 |  |  |   | 9.9  | 
|Daily average                             |  |                   | 7.4  |  |                      |   | 1.7 |                             |  |   | 6.2    |  |  |          | 0.8 |  |  |   | 14.8 | 
|At March 31, 2015                         |  |                   | 7.2  |  |                      |   | 1.3 |                             |  |   | 6.0    |  |  |          | 1.0 |  |  |   | 14.5 | 



|(1) | Total for Maximum, Minimum, and Daily average represent the maximum, minimum and daily average of the total of the trading book. For
certain subsidiaries, we employ the standardized method and/or the historical simulation method for the VaR calculation method.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

VaR for Non-trading Activity



| |  |  | Banking
| | - |  | -------

The aggregate VaR for our total banking activities at March 31, 2016 was ¥34.0 billion, a decrease from ¥39.0 billion at March 31, 2015 primarily due to a decrease in the net risk
exposure of equities.



|                                          |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|----------------------------------------- |  | ----------------- | ---- |  | -------------------- | - | --- | --------------------------- |  | - | ------ |  |  | -------- | --- |  |  | - | ---- | 
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2016: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 26.2 |  |                      | ¥ | 0.0 |                             |  | ¥ | 34.5   |  |  | ¥        | 0.0 |  |  | ¥ | 48.0 | 
|Minimum                                   |  |                   | 13.8 |  |                      |   | 0.0 |                             |  |   | 17.4   |  |  |          | 0.0 |  |  |   | 23.1 | 
|Daily average                             |  |                   | 20.0 |  |                      |   | 0.0 |                             |  |   | 28.7   |  |  |          | 0.0 |  |  |   | 37.8 | 
|At March 31, 2016                         |  |                   | 18.3 |  |                      |   | 0.0 |                             |  |   | 27.4   |  |  |          | 0.0 |  |  |   | 33.6 | 
|                                          |  |                   |      |  |                     
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 26.9 |  |                      | ¥ | 0.0 |                             |  | ¥ | 34.6   |  |  | ¥        | 0.0 |  |  | ¥ | 48.9 | 
|Minimum                                   |  |                   | 14.1 |  |                      |   | 0.0 |                             |  |   | 17.5   |  |  |          | 0.0 |  |  |   | 23.5 | 
|Daily average                             |  |                   | 20.8 |  |                      |   | 0.0 |                             |  |   | 28.7   |  |  |          | 0.0 |  |  |   | 38.7 | 
|At March 31, 2016                         |  |                   | 18.7 |  |                      |   | 0.0 |                             |  |   | 27.5   |  |  |          | 0.0 |  |  |   | 34.0 | 



|                                          |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|----------------------------------------- |  | ----------------- | ---- |  | -------------------- | - | --- | --------------------------- |  | - | ------ |  |  | -------- | --- |  |  | - | ---- | 
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2015: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 23.7 |  |                      | ¥ | 0.0 |                             |  | ¥ | 40.3   |  |  | ¥        | 0.0 |  |  | ¥ | 45.1 | 
|Minimum                                   |  |                   | 13.6 |  |                      |   | 0.0 |                             |  |   | 28.4   |  |  |          | 0.0 |  |  |   | 35.6 | 
|Daily average                             |  |                   | 18.2 |  |                      |   | 0.0 |                             |  |   | 33.7   |  |  |          | 0.0 |  |  |   | 40.7 | 
|At March 31, 2015                         |  |                   | 16.8 |  |                      |   | 0.0 |                             |  |   | 31.0   |  |  |          | 0.0 |  |  |   | 37.8 | 
|                                          |  |                   |      |  |                     
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 24.6 |  |                      | ¥ | 0.0 |                             |  | ¥ | 40.4   |  |  | ¥        | 0.0 |  |  | ¥ | 46.1 | 
|Minimum                                   |  |                   | 14.4 |  |                      |   | 0.0 |                             |  |   | 28.5   |  |  |          | 0.0 |  |  |   | 36.6 | 
|Daily average                             |  |                   | 19.2 |  |                      |   | 0.0 |                             |  |   | 33.8   |  |  |          | 0.0 |  |  |   | 41.7 | 
|At March 31, 2015                         |  |                   | 18.0 |  |                      |   | 0.0 |                             |  |   | 31.1   |  |  |          | 0.0 |  |  |   | 39.0 | 



|(1) | Total for Maximum, Minimum, and Daily average represent the maximum, minimum and daily average of the total of the banking book.
|--- | --------------------------------------------------------------------------------------------------------------------------------------



160



---

##### Table of Contents

| |  |  | Strategic Equity Investment
| | - |  | ---------------------------

The aggregate VaR for our strategic equity investment at March 31, 2016 was ¥1,387.6 billion, a decrease from ¥1,447.7 billion at March 31, 2015 primarily due to a decrease in the fair
value of the strategic equity investment portfolio.



|                                          |  |               |         | 
|----------------------------------------- |  | ------------- | ------- | 
|                                          |  | Equities risk |        
|                                          |  | (In billions) |        
|For the fiscal year ended March 31, 2016: |  |               |         | 
|SMBC Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,529.5 | 
|Minimum                                   |  |               | 1,132.5 | 
|Daily average                             |  |               | 1,397.7 | 
|At March 31, 2016                         |  |               | 1,247.0 | 
|                                          | 
|SMFG Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,677.1 | 
|Minimum                                   |  |               | 1,259.2 | 
|Daily average                             |  |               | 1,542.1 | 
|At March 31, 2016                         |  |               | 1,387.6 | 



|                                          |  |               |         | 
|----------------------------------------- |  | ------------- | ------- | 
|                                          |  | Equities risk |        
|                                          |  | (In billions) |        
|For the fiscal year ended March 31, 2015: |  |               |         | 
|SMBC Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,500.4 | 
|Minimum                                   |  |               | 1,067.9 | 
|Daily average                             |  |               | 1,261.9 | 
|At March 31, 2015                         |  |               | 1,400.5 | 
|                                          | 
|SMFG Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,549.1 | 
|Minimum                                   |  |               | 1,105.3 | 
|Daily average                             |  |               | 1,304.3 | 
|At March 31, 2015                         |  |               | 1,447.7 | 

Stress Tests

The market occasionally undergoes extreme fluctuations that exceed projections. Therefore, to manage market risk, it is important to run simulations of situations that may occur only once in many years,
or so-called stress tests. To prepare for unexpected market swings, the Bank performs stress tests on a monthly basis based on various scenarios.

The limitations of the VaR methodology include the following:



| |  |  | The use of historical data as a proxy for estimating future events may underestimate the probability of extreme market movements. Past market movement
is not necessarily a good indicator of future events;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The use of a holding period assumes that all positions can be liquidated or hedged in that period of time. This assumption does not fully capture the
market risk arising during periods of illiquidity, when liquidation or hedging in that period of time may not be possible;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The use of a confidence level neither takes account of, nor makes any statement about, any losses that might occur beyond this level of confidence; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | VaR does not capture all of the complex effects of the risk factors on the value of positions and portfolios and could underestimate potential losses.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



161



---

##### Table of Contents

Additional Information for Certain Risks

Interest Rate Risk

To supplement the above limitations of VaR methodologies, the Group adopts various indices to measure and monitor the sensitivity of interest rates, including delta, gamma and vega risks. The Group
considers BPV as one of the most significant indices to manage interest rate risk. BPV is the amount of change in the value to the banking and trading book as a result of a one-basis-point (0.01%) movement in interest rates. The principal Group
companies use BPV to monitor interest rate risk, not only on a net basis, but also by term to prevent the concentration of interest rate risk in a specific period. The table Outlier Ratio presented below is one of the sensitivity
analyses for interest rate risk concerning the banking book using the BPV approach. In addition, as previously addressed, the Group enhances the risk management methods of VaR and BPV by using them in combination with back-testing and stress tests.

Interest rate risk substantially changes depending on the method used for recognizing the expected maturity dates of demand
deposits that can be withdrawn at any time or the method used for estimating the timing of cancellation prior to maturity of time deposits and consumer housing loans. At the Bank, the maturity of demand deposits that are expected to be left with the
Bank for a prolonged period is regarded to be at the longest five years (2.5 years on average), and the cancellation prior to maturity of time deposits and consumer housing loans is estimated based on historical data.

Outlier Ratio

In the event the economic value of a bank declines by more than 20% of total capital as a result of interest rate shocks, that bank would fall into the category of outlier bank, as stipulated
under Pillar 2 of the Basel Capital Accord. This ratio, known as the outlier ratio, was 2.1% for the Bank on a consolidated basis at March 31, 2016, substantially below the 20% criterion. The decline in economic value based on the outlier
framework of the Bank on a consolidated basis is shown in the following table.



|                                     |  |                                   |       |   |      |   |       |  
|------------------------------------ |  | --------------------------------- | ----- | - | ---- | - | ----- | -
|                                     |  | At March 31,                      |      
|                                     |  | 2016                              |       |   | 2015 |  
|                                     |  | (In billions, except percentages) |      
|SMBC Consolidated                    |  |                                   |       |   |      |   |       |  
|Total                                |  | ¥                                 | 215.0 |   |      | ¥ | 132.6 |  
|Impact of yen interest rates         |  |                                   | 48.0  |   |      |   | 21.2  |  
|Impact of U.S. dollar interest rates |  |                                   | 109.7 |   |      |   | 57.4  |  
|Impact of euro interest rates        |  |                                   | 40.1  |   |      |   | 25.5  |  
|Percentage of total capital          |  |                                   | 2.1   | % |      |   | 1.3   | %



|Note: | Decline in economic value is the decline of the present value of a banking portfolio after interest rate shocks (1st and 99th percentile of observed interest rate
changes using a one-year holding period and an observation period of five years).
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Foreign Exchange Risk

The principal Group companies set risk limits for each currency to manage the concentration of the foreign currency
position. The foreign exchange risk is immaterial as shown above in VaR by risk category.

Strategic Equity Investment Risk

We establish limits on allowable risk for strategic equity investments, and monitor the observance of those limits to keep
stock price fluctuation risk within acceptable parameters. We have been reducing our strategic equity investments, and the balance is within a permitted level, which is less than 100% of our consolidated Tier 1 Capital. See Item 4.B.
Business OverviewRegulations in JapanRegulations for Stabilizing the Financial SystemRestriction on Aggregate Shareholdings by a Bank.



162



---

##### Table of Contents

Liquidity Risk Management Methods

We and the Bank regard liquidity risk as one of the major risks and we identify our Group companies which have significant liquidity risk.
Each of our identified Group companies, including the Bank, establishes a fundamental risk management framework. For example, the Bank manages liquidity risk based on a framework consisting of setting upper limits for funding gaps,
maintaining highly liquid supplementary funding sources and establishing contingency plans.

A funding gap is defined as a
maturity mismatch between a source of funds and the use of funds. The Bank actively manages this funding gap by setting limits on the size of gaps over a given time horizon and limiting reliance on short-term funding. These limits are established on
both a Bank-wide basis and individual branch basis, taking into account cash management planning, systemic factors and funding status, among other factors. Additionally, funding gap limits are set for individual currencies if necessary. The Bank
actively monitors funding gaps on a daily basis. Further, stress tests are regularly carried out by simulating the impact triggered, for example, by the outflow of deposits or having difficulties in funding from money markets, in order to thoroughly
comprehend the amount required to fund when the liquidity risk is realized. Additionally, funding liquidity is maintained by holding assets, such as U.S. government bonds, which can be immediately converted to cash, or establishing borrowing
facilities to be used as supplementary funding sources in an emergency, in order to smoothly raise the required funds even during market disruption.

Furthermore, contingency plans are developed to respond to the liquidity risk when being realized, by creating detailed action plans such as lowering the upper limit for the funding gap, depending on the
existing situation (i.e. normal, concerned, or critical) and the respective circumstances.

Operational Risk, Processing Risk and System
Risk

Operational risk is the possibility of losses arising from inadequate or failed internal processes, people and
systems or from external events. We have prepared operational risk management regulations to define the basic rules to be observed across our Group. Under these regulations, we are working to raise the level of sophistication of our management of
operational risk across the group by providing an effective framework for the identification, assessment, control and monitoring of significant risk factors and by establishing a system for executing contingency and business continuity plans.

Processing risk is the possibility of losses arising from negligent processing by employees, accidents, or unauthorized
activities. We recognize that all operations entail processing risk. We are, therefore, working to raise the level of sophistication of our management of processing risk across the whole Group by ensuring that each branch conducts its own regular
investigations of processing risk; minimizing losses in the event of processing errors or negligence by drafting exhaustive contingency plans; and carrying out thorough quantification of the risk under management.

System risk is the possibility of a loss arising from the failure, malfunction or unauthorized use of computer systems. We recognize that
reliable computer systems are essential for the effective implementation of management strategy. We strive to minimize system risk by adopting and implementing risk management regulations and specific management standards, including a security
policy. We also have contingency plans with the goal of minimizing losses in the event of a system failure. To prevent computer system breakdowns, we have also implemented numerous measures, including the duplication of various systems and
infrastructures, maintaining the Banks computer system to facilitate steady, uninterrupted operation, and establishing a disaster-prevention system consisting of computer centers in eastern and western Japan.

Other Risk

Settlement
risk is the possibility of a loss arising from a transaction that cannot be settled as planned. As this risk crosses over numerous categories of risk, including credit, liquidity, processing and system risks, it is required to appropriately manage
according to characteristics of such risks.



163



---

##### Table of Contents

|Item 12. | Description of Securities other than Equity Securities
|-------- | ------------------------------------------------------

12.A.    DEBT SECURITIES

Not applicable.

12.B.    WARRANTS AND RIGHTS

Not applicable.

12.C.    OTHER SECURITIES

Not applicable.

12.D.    AMERICAN DEPOSITARY SHARES

Under the terms of the deposit agreement, an ADSs holder may have to pay the following service fees to the depositary:



|                                                                                                  |  |                                                                                          
|------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------
|Service                                                                                           |  | Fees                                                                                     
|Issuance of ADSs                                                                                  |  | Up to U.S. 5¢ per ADS issued                                                             
|                                                                                                  | 
|Cancellation of ADSs                                                                              |  | Up to U.S. 5¢ per ADS canceled                                                           
|                                                                                                  | 
|Distribution of cash dividends or other cash distributions                                        |  | Up to U.S. 5¢ per ADS held                                                               
|                                                                                                  | 
|Distribution of ADSs pursuant to stock dividends, free stock distributions or exercises of rights |  | Up to U.S. 5¢ per ADS held                                                               
|                                                                                                  | 
|Distribution of securities other than ADSs or rights to purchase additional ADSs                  |  | Up to U.S. 5¢ per ADS held                                                               
|                                                                                                  | 
|Depositary services                                                                               |  | Up to U.S. 5¢ per ADS held on the applicable record date(s) established by the depositary

An ADS holder will also be responsible for paying certain fees and expenses incurred by the depositary
and certain taxes and governmental charges such as:



| |  |  | taxes (including applicable interest and penalties) and other governmental charges;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | the registration fees applicable to transfers of shares or other deposited securities to or from the name of the custodian, the depositary or any
nominees upon the making of deposits or withdrawals, respectively;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the cable, telex and facsimile transmission and delivery expenses expressly provided in the deposit agreement to be at the expense of the person
depositing or withdrawing shares or holders and beneficial owners of ADSs;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the expenses and charges incurred by the depositary in the conversion of foreign currency;
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | the fees and expenses incurred by the depositary in connection with compliance with exchange control regulations and other regulatory requirements
applicable to shares, deposited securities, ADSs and ADRs; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the fees and expenses incurred by the depositary, the custodian or any nominee in connection with the servicing or delivery of deposited securities.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



164



---

##### Table of Contents

Depositary fees payable upon the issuance and cancellation of ADSs are typically paid to the
depositary by the brokers (on behalf of their clients) receiving the newly issued ADSs from the depositary and by the brokers (on behalf of their clients) delivering the ADSs to the depositary for cancellation. The brokers in turn charge these
transaction fees to their clients.

Citibank, N.A., as depositary, has agreed to reimburse SMFG for certain expenses SMFG
incurs in connection with its ADR program, subject to certain ceilings. During the fiscal year ended March 31, 2016, we received $400,224.17 as reimbursement for such expenses.



165



---

##### Table of Contents

PART II



|Item 13. | Defaults, Dividend Arrearages and Delinquencies
|-------- | -----------------------------------------------

None.



|Item 14. | Material Modifications to the Rights of Security Holders and Use of Proceeds
|-------- | ----------------------------------------------------------------------------

None.



|Item 15. | Controls and Procedures
|-------- | -----------------------

Disclosure
Controls and Procedures

We carried out an evaluation under the supervision and with the participation of our management,
including Koichi Miyata, our President and Representative Director, and Jun Ohta, our Director, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange
Act of 1934) at March 31, 2016. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and
procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable, not absolute, assurance of achieving their control objectives. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Based upon the evaluation referred to above, Mr. Miyata and Mr. Ohta
concluded that the design and operation of our disclosure controls and procedures at March 31, 2016 were effective to provide reasonable assurance that information required to be disclosed in the reports that we file or submit under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms.

Managements Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with IFRS. Our internal control over financial reporting includes those policies and procedures that:



| | (i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that our receipts
and expenditures are being made only in accordance with authorizations of our management and directors; and
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on
the financial statements.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Because of its inherent limitations, internal control over financial reporting may
not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

Our management evaluated the effectiveness of our internal control over financial
reporting at March 31, 2016 based on the criteria established in Internal ControlIntegrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the evaluation, management
has concluded that we maintained effective internal control over financial reporting at March 31, 2016.



166



---

##### Table of Contents

The effectiveness of our internal control over financial reporting at March 31, 2016
has been audited by KPMG AZSA, our independent registered public accounting firm, as stated in their report appearing on page F-4.

Changes
in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting
that occurred during the period covered by this annual report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.



|Item 16A. | Audit Committee Financial Expert
|--------- | --------------------------------

Our board of corporate auditors has determined that Mr. Satoshi Itoh is an audit committee financial expert as defined in Item 16A. of Form 20-F and is independent as
defined in the listing standards of the NYSE. Mr. Itoh, an outside corporate auditor under the Companies Act, has spent most of his career auditing Japanese corporations as a certified public accountant and was a special professor at Chuo
University Graduate School of International Accounting from April 2002 to March 2007.



|Item 16B. | Code of Ethics
|--------- | --------------

We have
adopted a code of ethics, which is comprised of internal rules included in our business ethics and compliance manual, each of which applies to all our directors, officers and other employees.

Our business ethics are commonly applicable principles of Corporate Social Responsibility (CSR) in which observance of the
compliance system is regarded as very important. Our compliance manual sets forth the necessity of adherence to our management philosophy and code of conduct by our directors, officers and other employees, and the roles and responsibilities of our
employees, compliance officers, Compliance Division and others in the event of a breach of the compliance rules.

This manual
was created to identify, and to promote compliance by our directors, officers and other employees with relevant laws and regulations in conjunction with our management philosophy and code of conduct and compliance rules. This manual also sets forth
the procedures regarding the handling of conflicts of interest for our directors and the promotion of conduct that meets our management philosophy and code of conduct and compliance rules for employees. For a detailed discussion of our management
philosophy and code of conduct, see Item 4.B. Business OverviewManagement Philosophy.

A copy of the
sections of our business ethics and compliance manual equivalent to the code of ethics (as defined in paragraph (b) of Item 16B. of Form 20-F) is attached as Exhibit 11 to this annual report.

There were no material changes to the code of ethics during the fiscal year ended March 31, 2016. No waivers of the business ethics
and compliance manual have been granted to any of our directors, officers or other employees, during the fiscal year ended March 31, 2016.



167



---

##### Table of Contents

|Item 16C. | Principal Accountant Fees and Services
|--------- | --------------------------------------

Fees for Services Provided by KPMG AZSA and its Affiliates

The aggregate
fees billed by KPMG AZSA, our independent registered public accounting firm, and its affiliates, for the fiscal years ended March 31, 2016 and 2015 are presented in the following table:



|                      |  |                                    |       |  |      |   |       | 
|--------------------- |  | ---------------------------------- | ----- |  | ---- | - | ----- | 
|                      |  | For the fiscal year endedMarch 31, |      
|                      |  | 2016                               |       |  | 2015 |  
|                      |  | (In millions)                      |      
|Audit fees(1)         |  | ¥                                  | 4,496 |  |      | ¥ | 4,087 | 
|Audit-related fees(2) |  |                                    | 234   |  |      |   | 160   | 
|Tax fees(3)           |  |                                    | 208   |  |      |   | 151   | 
|All other fees(4)     |  |                                    | 4     |  |      |   | 12    | 
|                      |  |                                    |       |  |      |   |       | 
|Total                 |  | ¥                                  | 4,942 |  |      | ¥ | 4,410 | 
|                      |  |                                    |       |  |      |   |       | 



|(1) | Audit fees primarily include fees for the audit of our and our subsidiaries annual financial statements and fees for the services that are normally provided in
connection with our statutory and regulatory filings.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Audit-related fees primarily include fees for attestation and related services that are not reported under audit fees.
|--- | ----------------------------------------------------------------------------------------------------------------------

|(3) | Tax fees primarily include fees for tax compliance, assistance with preparation of tax return filings and tax advisory services.
|--- | --------------------------------------------------------------------------------------------------------------------------------

|(4) | All other fees primarily include fees for advisory services in relation to the examination for accounting policies in our branches.
|--- | -----------------------------------------------------------------------------------------------------------------------------------

Pre-Approval Policies and Procedures

Pursuant to Rule 2-01(c)(7) of Regulation S-X, our board of corporate auditors pre-approves all engagements with KPMG AZSA and its affiliates. Under the policies and procedures established by our board of
corporate auditors, SMFG and its subsidiaries must apply to our board of corporate auditors for pre-approval on either a periodic basis twice a year for services expected to be performed in the coming months or case-by-case basis before entering
into the engagement with KPMG AZSA and its affiliates to perform audit and permitted non-audit services.

Pre-approval is
granted by our board of corporate auditors prior to entering into the engagement. Additionally, if necessary, full-time corporate auditors may consider any case-by-case application for pre-approval on behalf
of our board of corporate auditors prior to the next scheduled board meeting. Such pre-approvals made by full-time corporate auditors are reported to our board of corporate auditors at the next scheduled board
meeting.

Fees approved pursuant to the procedures described in paragraph 2-01(c)(7)(i)(C) of Regulation S-X, which provides
for an exception to the general requirement for pre-approval in certain circumstances, were none for the fiscal years ended March 31, 2016 and 2015.



|Item 16D. | Exemptions from the Listing Standards for the Audit Committee
|--------- | -------------------------------------------------------------

We do not have an audit committee defined under the Securities Exchange Act of 1934. We are relying on the general exemption contained in Rule 10A-3(c)(3) under the Securities Exchange Act of 1934, which
provides an exemption from the NYSEs listing standards relating to audit committees for foreign companies that have a board of corporate auditors that meets the requirements set forth in Rule 10A-3(c)(3). Our reliance on Rule 10A-3(c)(3) does not, in our opinion, materially adversely affect the ability of our board of corporate auditors to act independently and to satisfy the other requirements of Rule 10A-3.



168



---

##### Table of Contents

|Item 16E. | Purchases of Equity Securities by the Issuer and Affiliated Purchasers
|--------- | ----------------------------------------------------------------------

The following table sets forth purchases of our common stock by us and our affiliated purchasers during the fiscal year ended March 31, 2016:



|                                  |  |                                    |        |  |                             |   |       |                                                                             |  |  |                                                                            |  |  |  |   | 
|--------------------------------- |  | ---------------------------------- | ------ |  | --------------------------- | - | ----- | --------------------------------------------------------------------------- |  |  | -------------------------------------------------------------------------- |  |  |  | - | 
|                                  |  | Total number ofshares purchased(1) |        |  | Average pricepaid per share |   |       | Total number ofshares purchasedas part ofpubliclyannounced plansor
programs |  |  | Maximumnumber of sharesthat may yet bepurchased underthe plans or
programs | 
|April 1 to April 30, 2015         |  |                                    | 3,538  |  |                             | ¥ | 4,801 |                                                                             |  |  |                                                                           |  |  |  |  | 
|May 1 to May 31, 2015             |  |                                    | 3,724  |  |                             |   | 5,301 |                                                                             |  |  |                                                                           |  |  |  |  | 
|June 1 to June 30, 2015           |  |                                    | 4,053  |  |                             |   | 5,527 |                                                                             |  |  |                                                                           |  |  |  |  | 
|July 1 to July 31, 2015           |  |                                    | 5,271  |  |                             |   | 5,456 |                                                                             |  |  |                                                                           |  |  |  |  | 
|August 1 to August 31, 2015       |  |                                    | 3,510  |  |                             |   | 5,424 |                                                                             |  |  |                                                                           |  |  |  |  | 
|September 1 to September 30, 2015 |  |                                    | 1,301  |  |                             |   | 4,760 |                                                                             |  |  |                                                                           |  |  |  |  | 
|October 1 to October 31, 2015     |  |                                    | 2,070  |  |                             |   | 4,752 |                                                                             |  |  |                                                                           |  |  |  |  | 
|November 1 to November 30, 2015   |  |                                    | 2,246  |  |                             |   | 4,944 |                                                                             |  |  |                                                                           |  |  |  |  | 
|December 1 to December 31, 2015   |  |                                    | 6,085  |  |                             |   | 4,636 |                                                                             |  |  |                                                                           |  |  |  |  | 
|January 1 to January 31, 2016     |  |                                    | 3,912  |  |                             |   | 4,451 |                                                                             |  |  |                                                                           |  |  |  |  | 
|February 1 to February 29, 2016   |  |                                    | 1,587  |  |                             |   | 3,524 |                                                                             |  |  |                                                                           |  |  |  |  | 
|March 1 to March 31, 2016         |  |                                    | 1,816  |  |                             |   | 3,492 |                                                                             |  |  |                                                                           |  |  |  |  | 
|                                  |  |                                    |        |  |                             |   |       |                                                                             |  |  |                                                                            |  |  |  |   | 
|Total                             |  |                                    | 39,113 |  |                             | ¥ | 4,899 |                                                                             |  |  |                                                                           |  |  |  |  | 
|                                  |  |                                    |        |  |                             |   |       |                                                                             |  |  |                                                                            |  |  |  |   | 



|(1) | A total of 39,113 shares were purchased other than through a publicly announced plan or program during the fiscal year ended March 31, 2016, due to our purchases
of shares constituting less than one unit from registered holders of such shares at the current market prices of those shares.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Item 16F. | Change in Registrants Certifying Accountant
|--------- | --------------------------------------------

None.



|Item 16G. | Corporate Governance
|--------- | --------------------

Companies listed on the NYSE must comply with certain corporate governance standards provided under Section 303A of the NYSE Listed
Company Manual. However, NYSE-listed companies that are foreign private issuers, including us, are permitted to follow home country practices in lieu of certain provisions of Section 303A if such foreign private issuers meet certain criteria.
We rely on the exemption for home country practices concerning the listing of our ADSs on the NYSE. On May 12, 2016, we announced we had started preparations to transform into a Company with three Committees from the current Company with a Board of
Corporate Auditors in order to further enhance our corporate governance framework. The transition is subject to approval by our ordinary general meeting of shareholders scheduled in June 2017.

Foreign private issuers listed on the NYSE are required to provide to their U.S. investors a brief, general summary of the significant
differences of corporate governance practices that differ from U.S. companies under NYSE listing standards. The following is a summary of the significant ways in which our corporate governance practices differ from NYSE standards followed by U.S.
companies:



| |  |  | U.S. companies listed on the NYSE are required to have an audit committee composed entirely of independent directors. Under the Companies Act of Japan,
we are required to have a corporate governance system based on (i) a board of corporate auditors, (ii) a nominating committee, an audit committee and a compensation committee, or (iii) an audit and supervisory committee. We adopt a corporate
governance system based on a board of corporate auditors. The basic function of the board of corporate auditors is similar to that of independent directors, including those who are members of the
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



169



---

##### Table of Contents

| | audit committee, of a NYSE-listed U.S. company, i.e., to monitor the performance of the directors and review and express opinions on the method of auditing by the independent registered public
accounting firm and on such accounting firms audit reports for the protection of the companys shareholders. Under the Companies Act, we are required to have at least half of our corporate auditors be outside corporate auditors who meet
the independence requirements under the Companies Act. Currently, three of our six corporate auditors are outside corporate auditors that meet such independence requirements. In addition, none of the corporate auditors may at the same time be
directors, managers or employees of the company or any of its subsidiaries, or accounting advisors or executive officers (shikkoyaku) of such subsidiaries. While the Companies Act does not require corporate auditors to have expertise in
accounting or other special knowledge and experience, one of our corporate auditors is a certified public accountant in Japan. We rely on an exemption from the audit committee requirements imposed by Rule 10A-3 of the Securities Exchange Act of
1934, which is available to foreign private issuers with a board of auditors (or similar body) meeting specified criteria. With respect to our board of corporate auditors, the criteria that we meet include the following:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | responsible, to the extent permitted by law, for the appointment, retention and supervision of the work of an independent registered public accounting
firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attestation services for us;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | subject to procedures for the receipt, retention and treatment of complaints and the confidential, anonymous submission of concerns by employees
regarding the status of our internal control system on accounting and financial reporting and internal and external audits;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | each corporate auditor has the authority to engage independent counsel and other advisers if such engagement is necessary to carry out his or her
duties; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | each corporate auditor has the ability to require us to pay any and all expenses necessary for carrying out his or her duties.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------

Under the Companies Act, companies that adopt a corporate governance system based on a board of corporate
auditors, such as us, are not required to maintain directors that are outside directors who meet the independence requirements under the Companies Act. However, five of our fourteen directors are outside directors who meet such requirements.



| |  |  | A NYSE-listed U.S. company is required to have a nominating/corporate governance committee and a compensation committee, all of which must be composed
entirely of independent directors. The members of the compensation committee must satisfy additional requirements set forth in Section 303A.02(a)(ii) of the NYSE Listed Company Manual. A compensation committee must also have the authority to,
in its sole discretion, retain or obtain the advice of a compensation consultant, independent legal counsel or other adviser. This authority is subject to the committees consideration of certain criteria set forth in Section 303A.05(c) of
the NYSE Listed Company Manual regarding the independence of the adviser. While we, a company which has corporate auditors, are not required to establish a nominating committee or a compensation committee under the Companies Act, we voluntarily
established similar committees, which have six and eight members respectively, five of whom on each committee are outside directors, to advise the board of directors on these matters in order to ensure transparency and impartiality in matters of
personnel decisions affecting the board of directors and directors compensation.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A NYSE-listed U.S. company must hold regularly scheduled executive sessions where participants are limited to non-management directors. Under the
Companies Act, Japanese corporations are not obliged to hold executive sessions where participants are limited to non-management directors.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The Companies Act requires that the aggregate amount of remuneration to be paid to all directors and the aggregate amount of remuneration to be paid to
all corporate auditors to be determined by a resolution of a general meeting of shareholders, unless their remuneration is provided for in the articles of incorporation. Based on the above resolution, the distribution of remuneration among directors
is
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



170



---

##### Table of Contents

| | broadly delegated to our board of directors, which takes into consideration the advisory opinion by the compensation committee, and the distribution of remuneration among corporate auditors is
determined by consultation among our corporate auditors.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A NYSE-listed U.S. company must adopt a code of business conduct and ethics and must post the code on its website. While we are not required to adopt
such code under Japanese law or the rules of stock exchanges in Japan on which we are listed, we maintain our code of conduct as our standard for corporate conduct to be observed by our directors, officers and employees.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A NYSE-listed U.S. company must adopt corporate governance guidelines and must post the guidelines on its website. While we are not required to adopt
such guidelines under Japanese law, the rules of the stock exchanges in Japan on which we are listed, including the Tokyo Stock Exchange, require listed companies, including us, to comply with the principles of the Corporate Governance Code
established by those stock exchanges and, in cases of noncompliance with some or all of the principles, to disclose the reasons for such noncompliance. In May 2015, we established the SMFG Corporate Governance Guideline, in consideration of the
Corporate Governance Code, to present our basic views and guidelines on corporate governance and improve our corporate governance system. Our Corporate Governance Guideline is available on our website at http://www.smfg.co.jp.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A NYSE-listed U.S. company must generally obtain shareholder approval with respect to any equity compensation plan, subject to limited exemptions.
Under the Companies Act of Japan, the adoption of an equity compensation plan including stock option-based plans for directors and corporate auditors requires shareholder approval. In order to issue stock options, a public company such as us must
obtain the approval of its board of directors, unless stock options are granted on preferential terms to the recipient, in which case it must obtain shareholder approval by a special resolution of a general meeting of shareholders. Under
our articles of incorporation, the quorum for such a special resolution of our shareholders is at least one-third of the total number of voting rights of all of shareholders, and approval by at least two-thirds of the number of voting rights
represented at the meeting is required.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We obtained shareholder approval at our June 2010 general meeting
of shareholders to introduce stock compensation-type stock options to our directors and corporate auditors. Under the terms resolved at the meeting we may issue stock options to our directors and corporate auditors as part of their remuneration upon
the approval of our board of directors unless stock options are issued on preferential terms to the recipient. For additional information, see Item 6.E. Share Ownership.



|Item 16H. | Mine Safety Disclosure
|--------- | ----------------------

Not applicable.



171



---

##### Table of Contents

PART III



|Item 17. | Financial Statements
|-------- | --------------------

We
have responded to Item 18 in lieu of this item.



|Item 18. | Financial Statements
|-------- | --------------------

The
information required by this item is set forth in our consolidated financial statements starting on page F-1 of this annual report.



|Item 19. | Exhibits
|-------- | --------

We have filed
the following documents as exhibits to this document:



|             |  |                                                                                                                                                                                                                                                                                                                 
|------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|             | 
|Exhibit 1.1  |  | Articles of Incorporation of Sumitomo Mitsui Financial Group, Inc., as amended on June 29, 2016                                                                                                                                                                                                                 
|             | 
|Exhibit 1.2  |  | Regulations of Board of Directors of Sumitomo Mitsui Financial Group, Inc., as amended on October 1, 2015                                                                                                                                                                                                       
|             | 
|Exhibit 1.3  |  | Share Handling Regulations of Sumitomo Mitsui Financial Group, Inc., as amended on April 1, 2012, incorporated by reference from our annual report on Form 20-F (Commission file
number 001-34919) filed on July 23, 2012                                                                                       
|             | 
|Exhibit 2.1  |  | Form of Deposit Agreement among the registrant, Citibank, N.A., as Depositary, and all owners and holders from time to time of American Depositary Shares issued thereunder,
incorporated by reference from our registration statement on Form 20-F (Commission file number 001-34919) filed on October 20, 2010
|             | 
|Exhibit 8    |  | List of subsidiaries of Sumitomo Mitsui Financial Group, Inc., at March 31, 2016                                                                                                                                                                                                                                
|             | 
|Exhibit 11   |  | Code of Ethics of Sumitomo Mitsui Financial Group, Inc., incorporated by reference from our annual report on Form 20-F (File No. 001-34919) filed on July 29,
2011                                                                                                                                              
|             | 
|Exhibit 12.1 |  | CEO Certification Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))                                                                                                                                                                                                                                             
|             | 
|Exhibit 12.2 |  | CFO Certification Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))                                                                                                                                                                                                                                             
|             | 
|Exhibit 13.1 |  | Certification Required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)                                                                                                                                                           
|             | 
|Exhibit 13.2 |  | Certification Required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)                                                                                                                                                           
|             | 
|Exhibit 15.1 |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                        

We have not included as exhibits certain instruments with respect to our long-term debt. The total amount
of our long-term debt securities or that of our subsidiaries, authorized under any instrument does not exceed 10% of our total assets. We hereby agree to furnish to the SEC, upon its request, a copy of any instrument defining the rights of holders
of our long-term debt or that of our subsidiaries for which consolidated or unconsolidated financial statements are required to be filed.



172



---

##### Table of Contents

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized
the undersigned to sign this annual report on its behalf.



Sumitomo Mitsui Financial Group, Inc.By:

/s/ Koichi MiyataName:

Koichi MiyataTitle:

President and Representative Director


Date: June 29, 2016



173



---

##### Table of Contents

SELECTED STATISTICAL DATA



|I. | Distribution of Assets, Liabilities and Equity; Interest Rates and Interest Differential
|-- | ----------------------------------------------------------------------------------------

Average Statements of Financial Positions, Interest and Average Rates

The following tables show the average balances of our statement of financial positions items and related interest and average interest
rates for the fiscal years ended March 31, 2016, 2015 and 2014. Average balances are generally based on a daily average. Weekly, month-end or quarter-end averages are used for certain average balances where it is not practical to obtain the
applicable daily averages. The average balances determined by such methods are considered to be representative of our operations. The allocation of amounts between domestic and foreign is based on the location of the office.



|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|------------------------------------------------------------------------- |  | ----------------------------------- | -------------------- | - | -------------- |  | ------------- | ----------- |  |  | -------------- |  |  | -------------- | --------------- | - | ----------- |  | ------------- | -------------- |  |  | -------------- | - |  | ----------- | ----------------- | - |  |  | ------------- |  |  |  | ----- | 
|                                                                          |  | For the fiscal year ended March 31, |                     
|                                                                          |  | 2016                                |                      |   | 2015           |  |               | 2014        | 
|                                                                          |  | Averagebalance                      |                      |   | Interestincome |  |               | Averagerate |  |  | Averagebalance |  |  | Interestincome |                 |   | Averagerate |  |               | Averagebalance |  |  | Interestincome |   |  | Averagerate |                  
|                                                                          |  | (In millions, except percentages)   |                     
|Interest-earning assets:                                                  |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Interest-earning deposits with other banks:                               |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | ¥            768,976 |   |                |  | ¥       4,771 |             |  |  | 0.62%          |  |  |                | ¥       741,738 |   |             |  | ¥       4,548 |                |  |  | 0.61%          |   |  |             | ¥         609,023 |   |  |  | ¥       2,807 |  |  |  | 0.46% | 
|Foreign offices                                                           |  |                                     | 5,786,836            |   |                |  | 35,701        |             |  |  | 0.62%          |  |  |                | 5,892,983       |   |             |  | 37,348        |                |  |  | 0.63%          |   |  |             | 6,027,100         |   |  |  | 34,521        |  |  |  | 0.57% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total                                                                     |  |                                     | 6,555,812            |   |                |  | 40,472        |             |  |  | 0.62%          |  |  |                | 6,634,721       |   |             |  | 41,896        |                |  |  | 0.63%          |   |  |             | 6,636,123         |   |  |  | 37,328        |  |  |  | 0.56% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Call loans and bills bought:                                              |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 147,992              |   |                |  | 861           |             |  |  | 0.58%          |  |  |                | 226,409         |   |             |  | 1,177         |                |  |  | 0.52%          |   |  |             | 273,903           |   |  |  | 1,583         |  |  |  | 0.58% | 
|Foreign offices                                                           |  |                                     | 967,442              |   |                |  | 20,967        |             |  |  | 2.17%          |  |  |                | 972,643         |   |             |  | 17,429        |                |  |  | 1.79%          |   |  |             | 1,154,049         |   |  |  | 16,559        |  |  |  | 1.43% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total                                                                     |  |                                     | 1,115,434            |   |                |  | 21,828        |             |  |  | 1.96%          |  |  |                | 1,199,052       |   |             |  | 18,606        |                |  |  | 1.55%          |   |  |             | 1,427,952         |   |  |  | 18,142        |  |  |  | 1.27% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Reverse repurchase agreements and cash collateral on securities borrowed: |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 6,675,810            |   |                |  | 10,763        |             |  |  | 0.16%          |  |  |                | 4,766,205       |   |             |  | 7,875         |                |  |  | 0.17%          |   |  |             | 3,749,260         |   |  |  | 7,339         |  |  |  | 0.20% | 
|Foreign offices                                                           |  |                                     | 741,623              |   |                |  | 11,248        |             |  |  | 1.52%          |  |  |                | 726,427         |   |             |  | 9,146         |                |  |  | 1.26%          |   |  |             | 419,274           |   |  |  | 7,631         |  |  |  | 1.82% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total                                                                     |  |                                     | 7,417,433            |   |                |  | 22,011        |             |  |  | 0.30%          |  |  |                | 5,492,632       |   |             |  | 17,021        |                |  |  | 0.31%          |   |  |             | 4,168,534         |   |  |  | 14,970        |  |  |  | 0.36% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Trading assets(1):                                                        |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 3,500,759            |   |                |  | 21,259        |             |  |  | 0.61%          |  |  |                | 3,284,505       |   |             |  | 24,313        |                |  |  | 0.74%          |   |  |             | 2,967,303         |   |  |  | 25,770        |  |  |  | 0.87% | 
|Foreign offices                                                           |  |                                     | 85,204               |   |                |  | 1,240         |             |  |  | 1.46%          |  |  |                | 84,006          |   |             |  | 1,661         |                |  |  | 1.98%          |   |  |             | 43,857            |   |  |  | 525           |  |  |  | 1.20% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total                                                                     |  |                                     | 3,585,963            |   |                |  | 22,499        |             |  |  | 0.63%          |  |  |                | 3,368,511       |   |             |  | 25,974        |                |  |  | 0.77%          |   |  |             | 3,011,160         |   |  |  | 26,295        |  |  |  | 0.87% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Financial assets at fair value through profit or
loss(2):                 |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 1,629,644            |   |                |  | 4,425         |             |  |  | 0.27%          |  |  |                | 1,672,433       |   |             |  | (4,373        | )              |  |  | (0.26%         | ) |  |             | 1,788,442         |   |  |  | 16,534        |  |  |  | 0.92% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Held-to-maturity investments(3):                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 2,964,539            |   |                |  | 12,880        |             |  |  | 0.43%          |  |  |                | 4,086,502       |   |             |  | 20,509        |                |  |  | 0.50%          |   |  |             | 5,238,921         |   |  |  | 30,303        |  |  |  | 0.58% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Available-for-sale financial
assets(3):                                   |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 10,878,176           |   |                |  | 38,701        |             |  |  | 0.36%          |  |  |                | 10,385,945      |   |             |  | 32,703        |                |  |  | 0.31%          |   |  |             | 12,119,698        |   |  |  | 35,539        |  |  |  | 0.29% | 
|Foreign offices                                                           |  |                                     | 2,425,249            |   |                |  | 33,331        |             |  |  | 1.37%          |  |  |                | 2,250,294       |   |             |  | 29,282        |                |  |  | 1.30%          |   |  |             | 1,780,684         |   |  |  | 19,956        |  |  |  | 1.12% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total                                                                     |  |                                     | 13,303,425           |   |                |  | 72,032        |             |  |  | 0.54%          |  |  |                | 12,636,239      |   |             |  | 61,985        |                |  |  | 0.49%          |   |  |             | 13,900,382        |   |  |  | 55,495        |  |  |  | 0.40% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Loans and advances(4):                                                    |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 63,177,259           |   |                |  | 1,091,538     |             |  |  | 1.73%          |  |  |                | 62,005,587      |   |             |  | 1,099,119     |                |  |  | 1.77%          |   |  |             | 61,524,516        |   |  |  | 1,138,102     |  |  |  | 1.85% | 
|Foreign offices                                                           |  |                                     | 26,272,983           |   |                |  | 611,823       |             |  |  | 2.33%          |  |  |                | 23,292,666      |   |             |  | 523,485       |                |  |  | 2.25%          |   |  |             | 19,553,229        |   |  |  | 419,704       |  |  |  | 2.15% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total                                                                     |  |                                     | 89,450,242           |   |                |  | 1,703,361     |             |  |  | 1.90%          |  |  |                | 85,298,253      |   |             |  | 1,622,604     |                |  |  | 1.90%          |   |  |             | 81,077,745        |   |  |  | 1,557,806     |  |  |  | 1.92% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total interest-earning assets:                                            |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Domestic offices                                                          |  |                                     | 89,743,155           |   |                |  | 1,185,198     |             |  |  | 1.32%          |  |  |                | 87,169,324      |   |             |  | 1,185,871     |                |  |  | 1.36%          |   |  |             | 88,271,066        |   |  |  | 1,257,977     |  |  |  | 1.43% | 
|Foreign offices                                                           |  |                                     | 36,279,337           |   |                |  | 714,310       |             |  |  | 1.97%          |  |  |                | 33,219,019      |   |             |  | 618,351       |                |  |  | 1.86%          |   |  |             | 28,978,193        |   |  |  | 498,896       |  |  |  | 1.72% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total                                                                     |  |                                     | 126,022,492          |   |                |  | ¥1,899,508    |             |  |  | 1.51%          |  |  |                | 120,388,343     |   |             |  | ¥1,804,222    |                |  |  | 1.50%          |   |  |             | 117,249,259       |   |  |  | ¥1,756,873    |  |  |  | 1.50% | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Non-interest-earning assets:                                              |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Cash and due from banks                                                   |  |                                     | 32,203,057           |   |                |  |               |             |  |  |                |  |  |                | 24,523,995      |   |             |  |               |                |  |  |                |   |  |             | 13,653,126        |   |  |  |               |  |  |  |       | 
|Other non-interest-earning assets                                         |  |                                     | 20,359,043           |   |                |  |               |             |  |  |                |  |  |                | 19,075,392      |   |             |  |               |                |  |  |                |   |  |             | 15,647,012        |   |  |  |               |  |  |  |       | 
|Allowance for loan losses                                                 |  |                                     | (778,386             | ) |                |  |               |             |  |  |                |  |  |                | (873,853        | ) |             |  |               |                |  |  |                |   |  |             | (1,157,839        | ) |  |  |               |  |  |  |       | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total non-interest-earning assets                                         |  |                                     | 51,783,714           |   |                |  |               |             |  |  |                |  |  |                | 42,725,534      |   |             |  |               |                |  |  |                |   |  |             | 28,142,299        |   |  |  |               |  |  |  |       | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total assets                                                              |  |                                     | ¥177,806,206         |   |                |  |               |             |  |  |                |  |  |                | ¥163,113,877    |   |             |  |               |                |  |  |                |   |  |             | ¥145,391,558      |   |  |  |               |  |  |  |       | 
|                                                                          |  |                                     |                      |   |                |  |               |             |  |  |                |  |  |                |                 |   |             |  |               |                |  |  |                |   |  |             |                   |   |  |  |               |  |  |  |       | 
|Total assets attributable to foreign offices                              |  |                                     | 24.5                 | % |                |  |               |             |  |  |                |  |  |                | 23.6            | % |             |  |               |                |  |  |                |   |  |             | 22.3              | % |  |  |               |  |  |  |       | 



A-1



---

##### Table of Contents

|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|-------------------------------------------------------------------- |  | ----------------------------------- | ------------------ | - | --------------- |  | ------------ | ----------- |  |  | -------------- |  |  | --------------- | ------------- | - | ----------- |  | ------------ | -------------- |  |  | --------------- |  |  | ----------- | ---------------- | - |  |  | ------------ |  |  |  | ----- | 
|                                                                     |  | For the fiscal year ended March 31, |                   
|                                                                     |  | 2016                                |                    |   | 2015            |  |              | 2014        | 
|                                                                     |  | Averagebalance                      |                    |   | Interestexpense |  |              | Averagerate |  |  | Averagebalance |  |  | Interestexpense |               |   | Averagerate |  |              | Averagebalance |  |  | Interestexpense |  |  | Averagerate |                 
|                                                                     |  | (In millions, except percentages)   |                   
|Interest-bearing liabilities:                                        |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Deposits:                                                            |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | ¥       78,458,170 |   |                 |  | ¥     48,032 |             |  |  | 0.06%          |  |  |                 | ¥  74,397,836 |   |             |  | ¥     49,356 |                |  |  | 0.07%           |  |  |             | ¥     72,376,165 |   |  |  | ¥     48,446 |  |  |  | 0.07% | 
|Foreign offices                                                      |  |                                     | 22,838,530         |   |                 |  | 154,280      |             |  |  | 0.68%          |  |  |                 | 21,263,919    |   |             |  | 116,211      |                |  |  | 0.55%           |  |  |             | 17,014,587       |   |  |  | 91,944       |  |  |  | 0.54% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 101,296,700        |   |                 |  | 202,312      |             |  |  | 0.20%          |  |  |                 | 95,661,755    |   |             |  | 165,567      |                |  |  | 0.17%           |  |  |             | 89,390,752       |   |  |  | 140,390      |  |  |  | 0.16% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Call money and bills sold:                                           |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | 2,199,407          |   |                 |  | 1,524        |             |  |  | 0.07%          |  |  |                 | 2,040,724     |   |             |  | 1,504        |                |  |  | 0.07%           |  |  |             | 1,497,244        |   |  |  | 1,222        |  |  |  | 0.08% | 
|Foreign offices                                                      |  |                                     | 663,310            |   |                 |  | 4,059        |             |  |  | 0.61%          |  |  |                 | 877,127       |   |             |  | 2,510        |                |  |  | 0.29%           |  |  |             | 651,839          |   |  |  | 2,261        |  |  |  | 0.35% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 2,862,717          |   |                 |  | 5,583        |             |  |  | 0.20%          |  |  |                 | 2,917,851     |   |             |  | 4,014        |                |  |  | 0.14%           |  |  |             | 2,149,083        |   |  |  | 3,483        |  |  |  | 0.16% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Repurchase agreements and cash collateral on securities lent:        |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | 7,172,312          |   |                 |  | 8,582        |             |  |  | 0.12%          |  |  |                 | 5,584,584     |   |             |  | 6,091        |                |  |  | 0.11%           |  |  |             | 4,167,460        |   |  |  | 4,558        |  |  |  | 0.11% | 
|Foreign offices                                                      |  |                                     | 2,009,593          |   |                 |  | 6,523        |             |  |  | 0.32%          |  |  |                 | 1,455,125     |   |             |  | 3,829        |                |  |  | 0.26%           |  |  |             | 990,721          |   |  |  | 2,989        |  |  |  | 0.30% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 9,181,905          |   |                 |  | 15,105       |             |  |  | 0.16%          |  |  |                 | 7,039,709     |   |             |  | 9,920        |                |  |  | 0.14%           |  |  |             | 5,158,181        |   |  |  | 7,547        |  |  |  | 0.15% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Trading liabilities(1):                                              |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | 2,243,856          |   |                 |  | 17,241       |             |  |  | 0.77%          |  |  |                 | 2,197,851     |   |             |  | 19,634       |                |  |  | 0.89%           |  |  |             | 1,916,419        |   |  |  | 20,341       |  |  |  | 1.06% | 
|Foreign offices                                                      |  |                                     | 25,565             |   |                 |  | 483          |             |  |  | 1.89%          |  |  |                 | 27,840        |   |             |  | 830          |                |  |  | 2.98%           |  |  |             | 9,123            |   |  |  | 120          |  |  |  | 1.32% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 2,269,421          |   |                 |  | 17,724       |             |  |  | 0.78%          |  |  |                 | 2,225,691     |   |             |  | 20,464       |                |  |  | 0.92%           |  |  |             | 1,925,542        |   |  |  | 20,461       |  |  |  | 1.06% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Borrowings:                                                          |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | 10,251,890         |   |                 |  | 56,353       |             |  |  | 0.55%          |  |  |                 | 9,170,288     |   |             |  | 54,915       |                |  |  | 0.60%           |  |  |             | 5,879,723        |   |  |  | 50,833       |  |  |  | 0.86% | 
|Foreign offices                                                      |  |                                     | 823,446            |   |                 |  | 15,850       |             |  |  | 1.92%          |  |  |                 | 790,516       |   |             |  | 16,122       |                |  |  | 2.04%           |  |  |             | 787,217          |   |  |  | 17,433       |  |  |  | 2.21% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 11,075,336         |   |                 |  | 72,203       |             |  |  | 0.65%          |  |  |                 | 9,960,804     |   |             |  | 71,037       |                |  |  | 0.71%           |  |  |             | 6,666,940        |   |  |  | 68,266       |  |  |  | 1.02% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Debt securities in issue:                                            |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | 7,999,705          |   |                 |  | 120,285      |             |  |  | 1.50%          |  |  |                 | 7,000,273     |   |             |  | 109,960      |                |  |  | 1.57%           |  |  |             | 6,223,653        |   |  |  | 92,481       |  |  |  | 1.49% | 
|Foreign offices                                                      |  |                                     | 3,044,714          |   |                 |  | 14,887       |             |  |  | 0.49%          |  |  |                 | 2,819,687     |   |             |  | 9,829        |                |  |  | 0.35%           |  |  |             | 2,355,748        |   |  |  | 7,636        |  |  |  | 0.32% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 11,044,419         |   |                 |  | 135,172      |             |  |  | 1.22%          |  |  |                 | 9,819,960     |   |             |  | 119,789      |                |  |  | 1.22%           |  |  |             | 8,579,401        |   |  |  | 100,117      |  |  |  | 1.17% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Other interest-bearing liabilities:                                  |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | 93,104             |   |                 |  | 676          |             |  |  | 0.73%          |  |  |                 | 96,873        |   |             |  | 731          |                |  |  | 0.75%           |  |  |             | 90,049           |   |  |  | 689          |  |  |  | 0.77% | 
|Foreign offices                                                      |  |                                     | 1,960              |   |                 |  | 50           |             |  |  | 2.55%          |  |  |                 | 3,025         |   |             |  | 49           |                |  |  | 1.62%           |  |  |             | 2,898            |   |  |  | 19           |  |  |  | 0.66% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 95,064             |   |                 |  | 726          |             |  |  | 0.76%          |  |  |                 | 99,898        |   |             |  | 780          |                |  |  | 0.78%           |  |  |             | 92,947           |   |  |  | 708          |  |  |  | 0.76% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total interest-bearing liabilities:                                  |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Domestic offices                                                     |  |                                     | 108,418,444        |   |                 |  | 252,693      |             |  |  | 0.23%          |  |  |                 | 100,488,429   |   |             |  | 242,191      |                |  |  | 0.24%           |  |  |             | 92,150,713       |   |  |  | 218,570      |  |  |  | 0.24% | 
|Foreign offices                                                      |  |                                     | 29,407,118         |   |                 |  | 196,132      |             |  |  | 0.67%          |  |  |                 | 27,237,239    |   |             |  | 149,380      |                |  |  | 0.55%           |  |  |             | 21,812,133       |   |  |  | 122,402      |  |  |  | 0.56% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total                                                                |  |                                     | 137,825,562        |   |                 |  | ¥   448,825  |             |  |  | 0.33%          |  |  |                 | 127,725,668   |   |             |  | ¥   391,571  |                |  |  | 0.31%           |  |  |             | 113,962,846      |   |  |  | ¥   340,972  |  |  |  | 0.30% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Non-interest-bearing liabilities:                                    |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Non-interest-bearing demand deposits                                 |  |                                     | 14,715,274         |   |                 |  |              |             |  |  |                |  |  |                 | 13,440,486    |   |             |  |              |                |  |  |                 |  |  |             | 12,772,713       |   |  |  |              |  |  |  |       | 
|Other non-interest-bearing liabilities                               |  |                                     | 12,999,027         |   |                 |  |              |             |  |  |                |  |  |                 | 11,834,101    |   |             |  |              |                |  |  |                 |  |  |             | 11,168,374       |   |  |  |              |  |  |  |       | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total non-interest-bearing liabilities                               |  |                                     | 27,714,301         |   |                 |  |              |             |  |  |                |  |  |                 | 25,274,587    |   |             |  |              |                |  |  |                 |  |  |             | 23,941,087       |   |  |  |              |  |  |  |       | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total equity                                                         |  |                                     | 12,266,343         |   |                 |  |              |             |  |  |                |  |  |                 | 10,113,622    |   |             |  |              |                |  |  |                 |  |  |             | 7,487,625        |   |  |  |              |  |  |  |       | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total equity and liabilities                                         |  |                                     | ¥177,806,206       |   |                 |  |              |             |  |  |                |  |  |                 | ¥163,113,877  |   |             |  |              |                |  |  |                 |  |  |             | ¥145,391,558     |   |  |  |              |  |  |  |       | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Total liabilities attributable to foreign offices                    |  |                                     | 20.5               | % |                 |  |              |             |  |  |                |  |  |                 | 20.0          | % |             |  |              |                |  |  |                 |  |  |             | 18.1             | % |  |  |              |  |  |  |       | 
|Net interest income and interest rate spread                         |  |                                     |                    |   |                 |  | ¥1,450,683   |             |  |  | 1.18%          |  |  |                 |               |   |             |  | ¥1,412,651   |                |  |  | 1.19%           |  |  |             |                  |   |  |  | ¥1,415,901   |  |  |  | 1.20% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 
|Net interest income as a percentage of total interest-earning assets |  |                                     |                    |   |                 |  |              |             |  |  | 1.15%          |  |  |                 |               |   |             |  |              |                |  |  | 1.17%           |  |  |             |                  |   |  |  |              |  |  |  | 1.21% | 
|                                                                     |  |                                     |                    |   |                 |  |              |             |  |  |                |  |  |                 |               |   |             |  |              |                |  |  |                 |  |  |             |                  |   |  |  |              |  |  |  |       | 



|(1) | The net amount of interest income on trading assets and interest expense on trading liabilities is reported as net trading income in our consolidated income statement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Interest income on financial assets at fair value through profit or loss is reported in net income from financial assets at fair value through profit or loss in our
consolidated income statement.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Taxable investment securities and non-taxable investment securities are not disclosed separately because the aggregate effect of these average balances and interest
income would not be material. In addition, the yields on tax-exempt obligations have not been calculated on a tax equivalent basis because the effect of such calculation would not be material.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Loans and advances include impaired loans and advances. The amortized portion of net loan origination fees is included in interest income on loans and advances.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



A-2



---

##### Table of Contents

Analysis of Net Interest Income

The following tables show the changes to our net interest income attributable to changes in the volume and changes in the rates for the
fiscal year ended March 31, 2016 compared to the fiscal year ended March 31, 2015 and for the fiscal year ended March 31, 2015 compared to the fiscal year ended March 31, 2014.

Changes attributable to the combined impact of changes in the rates and the volume have been allocated proportionately to the changes in
the volume and changes in the rates.



|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------ | ------ | - | ------------------------------------------------------------------------------------------------ | - | ------- | ---------- |  | - | ------ | - |  | ---- | ------ | - | ---------- | - | ------- | - |  | - | ------- | -
|                                                                          |  | Fiscal year ended March 31,
2016compared tofiscal year ended March 31,
2015Increase / (decrease) |        |   | Fiscal year ended March 31,
2015compared tofiscal year ended March 31,
2014Increase / (decrease) |  
|                                                                          |  | Volume                                                                                           |        |   | Rate                                                                                             |   |         | Net change |  |   | Volume |   |  | Rate |        |   | Net change |  
|                                                                          |  | (In millions)                                                                                    |       
|Interest income:                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Interest-earning deposits with other banks:                               |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  | ¥                                                                                                | 168    |   |                                                                                                  | ¥ | 55      |            |  | ¥ | 223    |   |  | ¥    | 690    |   |            | ¥ | 1,051   |   |  | ¥ | 1,741   |  
|Foreign offices                                                           |  |                                                                                                  | (663   | ) |                                                                                                  |   | (984    | )          |  |   | (1,647 | ) |  |      | (779   | ) |            |   | 3,606   |   |  |   | 2,827   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | (495   | ) |                                                                                                  |   | (929    | )          |  |   | (1,424 | ) |  |      | (89    | ) |            |   | 4,657   |   |  |   | 4,568   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Call loans and bills bought:                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | (443   | ) |                                                                                                  |   | 127     |            |  |   | (316   | ) |  |      | (258   | ) |            |   | (148    | ) |  |   | (406    | )
|Foreign offices                                                           |  |                                                                                                  | (94    | ) |                                                                                                  |   | 3,632   |            |  |   | 3,538  |   |  |      | (2,845 | ) |            |   | 3,715   |   |  |   | 870     |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | (537   | ) |                                                                                                  |   | 3,759   |            |  |   | 3,222  |   |  |      | (3,103 | ) |            |   | 3,567   |   |  |   | 464     |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Reverse repurchase agreements and cash collateral on securities borrowed: |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 3,080  |   |                                                                                                  |   | (192    | )          |  |   | 2,888  |   |  |      | 1,837  |   |            |   | (1,301  | ) |  |   | 536     |  
|Foreign offices                                                           |  |                                                                                                  | 195    |   |                                                                                                  |   | 1,907   |            |  |   | 2,102  |   |  |      | 4,379  |   |            |   | (2,864  | ) |  |   | 1,515   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | 3,275  |   |                                                                                                  |   | 1,715   |            |  |   | 4,990  |   |  |      | 6,216  |   |            |   | (4,165  | ) |  |   | 2,051   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Trading assets(1):                                                        |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 1,524  |   |                                                                                                  |   | (4,578  | )          |  |   | (3,054 | ) |  |      | 2,588  |   |            |   | (4,045  | ) |  |   | (1,457  | )
|Foreign offices                                                           |  |                                                                                                  | 23     |   |                                                                                                  |   | (444    | )          |  |   | (421   | ) |  |      | 665    |   |            |   | 471     |   |  |   | 1,136   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | 1,547  |   |                                                                                                  |   | (5,022  | )          |  |   | (3,475 | ) |  |      | 3,253  |   |            |   | (3,574  | ) |  |   | (321    | )
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Financial assets at fair value through profit or loss(2):                 |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | (108   | ) |                                                                                                  |   | 8,906   |            |  |   | 8,798  |   |  |      | (1,001 | ) |            |   | (19,906 | ) |  |   | (20,907 | )
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Held-to-maturity investments:                                             |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | (5,090 | ) |                                                                                                  |   | (2,539  | )          |  |   | (7,629 | ) |  |      | (6,117 | ) |            |   | (3,677  | ) |  |   | (9,794  | )
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Available-for-sale financial assets:                                      |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 1,582  |   |                                                                                                  |   | 4,416   |            |  |   | 5,998  |   |  |      | (5,262 | ) |            |   | 2,426   |   |  |   | (2,836  | )
|Foreign offices                                                           |  |                                                                                                  | 2,347  |   |                                                                                                  |   | 1,702   |            |  |   | 4,049  |   |  |      | 5,785  |   |            |   | 3,541   |   |  |   | 9,326   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | 3,929  |   |                                                                                                  |   | 6,118   |            |  |   | 10,047 |   |  |      | 523    |   |            |   | 5,967   |   |  |   | 6,490   |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Loans and advances:                                                       |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 20,525 |   |                                                                                                  |   | (28,106 | )          |  |   | (7,581 | ) |  |      | 8,841  |   |            |   | (47,824 | ) |  |   | (38,983 | )
|Foreign offices                                                           |  |                                                                                                  | 68,923 |   |                                                                                                  |   | 19,415  |            |  |   | 88,338 |   |  |      | 83,406 |   |            |   | 20,375  |   |  |   | 103,781 |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  |                                                                                                  | 89,448 |   |                                                                                                  |   | (8,691  | )          |  |   | 80,757 |   |  |      | 92,247 |   |            |   | (27,449 | ) |  |   | 64,798  |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total interest income:                                                    |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Domestic offices                                                          |  |                                                                                                  | 21,238 |   |                                                                                                  |   | (21,911 | )          |  |   | (673   | ) |  |      | 1,318  |   |            |   | (73,424 | ) |  |   | (72,106 | )
|Foreign offices                                                           |  |                                                                                                  | 70,731 |   |                                                                                                  |   | 25,228  |            |  |   | 95,959 |   |  |      | 90,611 |   |            |   | 28,844  |   |  |   | 119,455 |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  
|Total                                                                     |  | ¥                                                                                                | 91,969 |   |                                                                                                  | ¥ | 3,317   |            |  | ¥ | 95,286 |   |  | ¥    | 91,929 |   |            | ¥ | (44,580 | ) |  | ¥ | 47,349  |  
|                                                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |        |   |  |      |        |   |            |   |         |   |  |   |         |  



A-3



---

##### Table of Contents

|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------ | ------ | - | ------------------------------------------------------------------------------------------------ | - | ------- | ---------- |  | - | ------- | - |  | ---- | ------- | - | ---------- | - | ------- | - |  | - | ------- | -
|                                                              |  | Fiscal year ended March 31,
2016compared tofiscal year ended March 31,
2015Increase / (decrease) |        |   | Fiscal year ended March 31,
2015compared tofiscal year ended March 31,
2014Increase / (decrease) |  
|                                                              |  | Volume                                                                                           |        |   | Rate                                                                                             |   |         | Net change |  |   | Volume  |   |  | Rate |         |   | Net change |  
|                                                              |  | (In millions)                                                                                    |       
|Interest expense:                                             |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Deposits:                                                     |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  | ¥                                                                                                | 2,730  |   |                                                                                                  | ¥ | (4,054  | )          |  | ¥ | (1,324  | ) |  | ¥    | 1,415   |   |            | ¥ | (505    | ) |  | ¥ | 910     |  
|Foreign offices                                               |  |                                                                                                  | 9,149  |   |                                                                                                  |   | 28,920  |            |  |   | 38,069  |   |  |      | 23,342  |   |            |   | 925     |   |  |   | 24,267  |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                  | 11,879 |   |                                                                                                  |   | 24,866  |            |  |   | 36,745  |   |  |      | 24,757  |   |            |   | 420     |   |  |   | 25,177  |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Call money and bills sold:                                    |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                  | 111    |   |                                                                                                  |   | (91     | )          |  |   | 20      |   |  |      | 394     |   |            |   | (112    | ) |  |   | 282     |  
|Foreign offices                                               |  |                                                                                                  | (744   | ) |                                                                                                  |   | 2,293   |            |  |   | 1,549   |   |  |      | 698     |   |            |   | (449    | ) |  |   | 249     |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                  | (633   | ) |                                                                                                  |   | 2,202   |            |  |   | 1,569   |   |  |      | 1,092   |   |            |   | (561    | ) |  |   | 531     |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Repurchase agreements and cash collateral on securities lent: |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                  | 1,867  |   |                                                                                                  |   | 624     |            |  |   | 2,491   |   |  |      | 1,559   |   |            |   | (26     | ) |  |   | 1,533   |  
|Foreign offices                                               |  |                                                                                                  | 1,649  |   |                                                                                                  |   | 1,045   |            |  |   | 2,694   |   |  |      | 1,249   |   |            |   | (409    | ) |  |   | 840     |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                  | 3,516  |   |                                                                                                  |   | 1,669   |            |  |   | 5,185   |   |  |      | 2,808   |   |            |   | (435    | ) |  |   | 2,373   |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Trading liabilities(1):                                       |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                  | 402    |   |                                                                                                  |   | (2,795  | )          |  |   | (2,393  | ) |  |      | 2,754   |   |            |   | (3,461  | ) |  |   | (707    | )
|Foreign offices                                               |  |                                                                                                  | (63    | ) |                                                                                                  |   | (284    | )          |  |   | (347    | ) |  |      | 440     |   |            |   | 270     |   |  |   | 710     |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                  | 339    |   |                                                                                                  |   | (3,079  | )          |  |   | (2,740  | ) |  |      | 3,194   |   |            |   | (3,191  | ) |  |   | 3       |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Borrowings:                                                   |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                  | 6,173  |   |                                                                                                  |   | (4,735  | )          |  |   | 1,438   |   |  |      | 22,744  |   |            |   | (18,662 | ) |  |   | 4,082   |  
|Foreign offices                                               |  |                                                                                                  | 655    |   |                                                                                                  |   | (927    | )          |  |   | (272    | ) |  |      | 73      |   |            |   | (1,384  | ) |  |   | (1,311  | )
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                  | 6,828  |   |                                                                                                  |   | (5,662  | )          |  |   | 1,166   |   |  |      | 22,817  |   |            |   | (20,046 | ) |  |   | 2,771   |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Debt securities in issue:                                     |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                  | 15,158 |   |                                                                                                  |   | (4,833  | )          |  |   | 10,325  |   |  |      | 12,006  |   |            |   | 5,473   |   |  |   | 17,479  |  
|Foreign offices                                               |  |                                                                                                  | 840    |   |                                                                                                  |   | 4,218   |            |  |   | 5,058   |   |  |      | 1,579   |   |            |   | 614     |   |  |   | 2,193   |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                  | 15,998 |   |                                                                                                  |   | (615    | )          |  |   | 15,383  |   |  |      | 13,585  |   |            |   | 6,087   |   |  |   | 19,672  |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Other interest-bearing liabilities:                           |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                  | (28    | ) |                                                                                                  |   | (27     | )          |  |   | (55     | ) |  |      | 52      |   |            |   | (10     | ) |  |   | 42      |  
|Foreign offices                                               |  |                                                                                                  | (21    | ) |                                                                                                  |   | 22      |            |  |   | 1       |   |  |      | 1       |   |            |   | 29      |   |  |   | 30      |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  |                                                                                                  | (49    | ) |                                                                                                  |   | (5      | )          |  |   | (54     | ) |  |      | 53      |   |            |   | 19      |   |  |   | 72      |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total interest expense:                                       |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  |                                                                                                  | 26,413 |   |                                                                                                  |   | (15,911 | )          |  |   | 10,502  |   |  |      | 40,924  |   |            |   | (17,303 | ) |  |   | 23,621  |  
|Foreign offices                                               |  |                                                                                                  | 11,465 |   |                                                                                                  |   | 35,287  |            |  |   | 46,752  |   |  |      | 27,382  |   |            |   | (404    | ) |  |   | 26,978  |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  | ¥                                                                                                | 37,878 |   |                                                                                                  | ¥ | 19,376  |            |  | ¥ | 57,254  |   |  | ¥    | 68,306  |   |            | ¥ | (17,707 | ) |  | ¥ | 50,599  |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Net interest income:                                          |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Domestic offices                                              |  | ¥                                                                                                | (5,175 | ) |                                                                                                  | ¥ | (6,000  | )          |  | ¥ | (11,175 | ) |  | ¥    | (39,606 | ) |            | ¥ | (56,121 | ) |  | ¥ | (95,727 | )
|Foreign offices                                               |  |                                                                                                  | 59,266 |   |                                                                                                  |   | (10,059 | )          |  |   | 49,207  |   |  |      | 63,229  |   |            |   | 29,248  |   |  |   | 92,477  |  
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  
|Total                                                         |  | ¥                                                                                                | 54,091 |   |                                                                                                  | ¥ | (16,059 | )          |  | ¥ | 38,032  |   |  | ¥    | 23,623  |   |            | ¥ | (26,873 | ) |  | ¥ | (3,250  | )
|                                                              |  |                                                                                                  |        |   |                                                                                                  |   |         |            |  |   |         |   |  |      |         |   |            |   |         |   |  |   |         |  



|(1) | The net amount of interest income on trading assets and interest expense on trading liabilities is reported as net trading income in our consolidated income statement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Interest income on financial assets at fair value through profit or loss is reported in net income from financial assets at fair value through profit or loss in our
consolidated income statement.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



A-4



---

##### Table of Contents

|II. | Investment Portfolio
|--- | --------------------

The
information as to the value of held-to-maturity investments and available-for-sale financial assets at March 31, 2016, 2015 and 2014 is presented on Item 5.A. Operating ResultsFinancial ConditionInvestment Securities.

The following table shows the book values, maturities and weighted average yields of held-to-maturity investments and
available-for-sale financial assets, excluding equity instruments, at March 31, 2016. Weighted average yields are calculated based on amortized cost. Yields on tax-exempt obligations have not been calculated on a tax equivalent basis because the
effect of such a calculation would not be material.



|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|----------------------------------------------------------- |  | --------------------------------- | --------- |  | ------------------------------------------------- |  | ---- | -------------------------------------------------- |  | - | -------------------- |  |  | ------ | ---- | - | ----- | - | --------- | ------ |  |  | ----- | - |  | ------ | --------- |  | ----- |  | ---- | - |  | - | ---------- |  |  |  | ---- | -
|                                                            |  | Not later than one year           |           |  | Later than one year and not later than five years |  |      | Later than five years and not later than ten years |  |   | Later than ten years |  |  | Total  |     
|                                                            |  | Amount                            |           |  | Yield                                             |  |      | Amount                                             |  |   | Yield                |  |  | Amount |      |   | Yield |   |           | Amount |  |  | Yield |   |  | Amount |           |  | Yield | 
|                                                            |  | (In millions, except percentages) |          
|Held-to-maturity investments:                               |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Domestic:                                                   |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Japanese government bonds                                   |  | ¥                                 | 1,080,472 |  |                                                   |  | 0.43 | %                                                  |  | ¥ | 1,161,019            |  |  |        | 0.32 | % |       | ¥ |          |        |  |  |      |   |  | ¥      |          |  |       |  |     |   |  | ¥ | 2,241,491  |  |  |  | 0.37 | %
|Japanese municipal bonds                                    |  |                                   | 13,361    |  |                                                   |  | 0.35 | %                                                  |  |   | 7,488                |  |  |        | 0.11 | % |       |   |          |        |  |  |      |   |  |        |          |  |       |  |     |   |  |   | 20,849     |  |  |  | 0.27 | %
|Japanese corporate bonds                                    |  |                                   |          |  |                                                   |  |     |                                                    |  |   | 5,202                |  |  |        | 0.25 | % |       |   |          |        |  |  |      |   |  |        |          |  |       |  |     |   |  |   | 5,202      |  |  |  | 0.25 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Total domestic                                              |  |                                   | 1,093,833 |  |                                                   |  | 0.43 | %                                                  |  |   | 1,173,709            |  |  |        | 0.32 | % |       |   |          |        |  |  |      |   |  |        |          |  |       |  |     |   |  |   | 2,267,542  |  |  |  | 0.37 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Foreign:                                                    |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|U.S. Treasury and other U.S. government agency bonds        |  |                                   |          |  |                                                   |  |     |                                                    |  |   |                     |  |  |        |     |   |       |   |          |        |  |  |      |   |  |        |          |  |       |  |     |   |  |   |           |  |  |  |     |  
|Bonds issued by other governments and official institutions |  |                                   |          |  |                                                   |  |     |                                                    |  |   |                     |  |  |        |     |   |       |   |          |        |  |  |      |   |  |        |          |  |       |  |     |   |  |   |           |  |  |  |     |  
|Other debt instruments                                      |  |                                   |          |  |                                                   |  |     |                                                    |  |   |                     |  |  |        |     |   |       |   |          |        |  |  |      |   |  |        |          |  |       |  |     |   |  |   |           |  |  |  |     |  
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Total foreign                                               |  |                                   |          |  |                                                   |  |     |                                                    |  |   |                     |  |  |        |     |   |       |   |          |        |  |  |      |   |  |        |          |  |       |  |     |   |  |   |           |  |  |  |     |  
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Total                                                       |  | ¥                                 | 1,093,833 |  |                                                   |  | 0.43 | %                                                  |  | ¥ | 1,173,709            |  |  |        | 0.32 | % |       | ¥ |          |        |  |  |      |   |  | ¥      |          |  |       |  |     |   |  | ¥ | 2,267,542  |  |  |  | 0.37 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Available-for-sale financial assets:                        |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Domestic:                                                   |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Japanese government bonds                                   |  | ¥                                 | 1,549,001 |  |                                                   |  | 0.11 | %                                                  |  | ¥ | 4,714,941            |  |  |        | 0.05 | % |       | ¥ | 11,736    |        |  |  | 0.44  | % |  | ¥      | 252,897   |  |       |  | 0.55 | % |  | ¥ | 6,528,575  |  |  |  | 0.09 | %
|Japanese municipal bonds                                    |  |                                   | 12,590    |  |                                                   |  | 0.84 | %                                                  |  |   | 14,483               |  |  |        | 0.39 | % |       |   | 4,109     |        |  |  | 0.26  | % |  |        | 39        |  |       |  | 1.96 | % |  |   | 31,221     |  |  |  | 0.56 | %
|Japanese corporate bonds                                    |  |                                   | 43,966    |  |                                                   |  | 0.43 | %                                                  |  |   | 164,522              |  |  |        | 0.38 | % |       |   | 50,434    |        |  |  | 0.37  | % |  |        | 48,574    |  |       |  | 0.80 | % |  |   | 307,496    |  |  |  | 0.45 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Total domestic                                              |  |                                   | 1,605,557 |  |                                                   |  | 0.12 | %                                                  |  |   | 4,893,946            |  |  |        | 0.07 | % |       |   | 66,279    |        |  |  | 0.37  | % |  |        | 301,510   |  |       |  | 0.59 | % |  |   | 6,867,292  |  |  |  | 0.11 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Foreign:                                                    |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|U.S. Treasury and other U.S. government agency bonds        |  |                                   | 507,831   |  |                                                   |  | 0.41 | %                                                  |  |   | 918,533              |  |  |        | 0.98 | % |       |   | 819,766   |        |  |  | 1.65  | % |  |        |          |  |       |  |     |   |  |   | 2,246,130  |  |  |  | 1.10 | %
|Bonds issued by other governments and official institutions |  |                                   | 1,262,272 |  |                                                   |  | 1.03 | %                                                  |  |   | 217,771              |  |  |        | 3.24 | % |       |   | 396,968   |        |  |  | 0.70  | % |  |        | 261,982   |  |       |  | 0.62 | % |  |   | 2,138,993  |  |  |  | 1.14 | %
|Mortgage-backed securities(1)                               |  |                                   |          |  |                                                   |  |     |                                                    |  |   |                     |  |  |        |     |   |       |   | 5         |        |  |  | 2.42  | % |  |        | 984,516   |  |       |  | 3.05 | % |  |   | 984,521    |  |  |  | 3.05 | %
|Other debt instruments                                      |  |                                   | 68,695    |  |                                                   |  | 1.67 | %                                                  |  |   | 39,829               |  |  |        | 2.87 | % |       |   | 3,377     |        |  |  | 1.24  | % |  |        | 1,073     |  |       |  | 0.23 | % |  |   | 112,974    |  |  |  | 2.07 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Total foreign                                               |  |                                   | 1,838,798 |  |                                                   |  | 0.88 | %                                                  |  |   | 1,176,133            |  |  |        | 1.46 | % |       |   | 1,220,116 |        |  |  | 1.34  | % |  |        | 1,247,571 |  |       |  | 2.54 | % |  |   | 5,482,618  |  |  |  | 1.48 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  
|Total                                                       |  | ¥                                 | 3,444,355 |  |                                                   |  | 0.53 | %                                                  |  | ¥ | 6,070,079            |  |  |        | 0.34 | % |       | ¥ | 1,286,395 |        |  |  | 1.30  | % |  | ¥      | 1,549,081 |  |       |  | 2.16 | % |  | ¥ | 12,349,910 |  |  |  | 0.72 | %
|                                                            |  |                                   |           |  |                                                   |  |      |                                                    |  |   |                      |  |  |        |      |   |       |   |           |        |  |  |       |   |  |        |           |  |       |  |      |   |  |   |            |  |  |  |      |  



|(1) | Foreign mortgage-backed securities primarily consist of securities of Government National Mortgage Association, which are guaranteed by the U.S. government.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

Excluding securities of the U.S. government and U.S. government agencies and corporations and Japanese
government bonds, there are no investments in any individual issuers held in our investment portfolio which exceeded 10% of shareholders equity in the consolidated statement of financial position at March 31, 2016.



A-5



---

##### Table of Contents

|III. | Loan Portfolio
|---- | --------------

The
following table shows our outstanding loans and advances by the domicile and industry type of the borrowers at March 31, 2016, 2015, 2014, 2013 and 2012. The classification of loans and advances by industry is based on the industry segment loan
classification as defined by the Bank of Japan (BOJ) for regulatory reporting purposes.



|                                                                             |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|---------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | - |  | ---- | ---------- | - |  | - | ---------- | -
|                                                                             |  | At March 31,  |           
|                                                                             |  | 2016          |            |   | 2015 |   |            | 2014 |  |   | 2013       |   |  | 2012 |           
|                                                                             |  | (In millions) |           
|Domestic:                                                                    |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Manufacturing                                                                |  | ¥             | 8,298,576  |   |      | ¥ | 8,061,654  |      |  | ¥ | 8,018,568  |   |  | ¥    | 8,071,044  |   |  | ¥ | 8,462,004  |  
|Agriculture, forestry, fisheries and mining                                  |  |               | 184,314    |   |      |   | 171,855    |      |  |   | 177,012    |   |  |      | 164,420    |   |  |   | 152,128    |  
|Construction                                                                 |  |               | 1,169,900  |   |      |   | 1,150,616  |      |  |   | 1,152,388  |   |  |      | 1,167,115  |   |  |   | 1,284,882  |  
|Transportation, communications and public enterprises                        |  |               | 5,258,899  |   |      |   | 5,175,949  |      |  |   | 5,086,361  |   |  |      | 4,708,870  |   |  |   | 4,414,102  |  
|Wholesale and retail                                                         |  |               | 5,548,103  |   |      |   | 5,664,385  |      |  |   | 5,505,570  |   |  |      | 5,388,032  |   |  |   | 5,480,393  |  
|Finance and insurance                                                        |  |               | 2,684,865  |   |      |   | 2,869,967  |      |  |   | 2,537,347  |   |  |      | 2,715,862  |   |  |   | 2,170,776  |  
|Real estate and goods rental and leasing                                     |  |               | 9,587,757  |   |      |   | 8,766,724  |      |  |   | 8,117,000  |   |  |      | 8,145,769  |   |  |   | 7,982,741  |  
|Services                                                                     |  |               | 4,960,352  |   |      |   | 4,776,706  |      |  |   | 4,855,536  |   |  |      | 4,404,359  |   |  |   | 4,076,818  |  
|Municipalities                                                               |  |               | 1,374,306  |   |      |   | 1,353,949  |      |  |   | 1,279,010  |   |  |      | 1,270,981  |   |  |   | 1,234,355  |  
|Lease financing                                                              |  |               | 2,212,048  |   |      |   | 2,211,773  |      |  |   | 2,133,760  |   |  |      | 2,058,284  |   |  |   | 2,056,972  |  
|Consumer(1)                                                                  |  |               | 18,935,521 |   |      |   | 18,817,259 |      |  |   | 19,086,241 |   |  |      | 18,834,079 |   |  |   | 19,185,574 |  
|Others                                                                       |  |               | 2,989,278  |   |      |   | 3,211,240  |      |  |   | 3,159,438  |   |  |      | 3,341,636  |   |  |   | 4,155,960  |  
|                                                                             |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Total domestic                                                               |  |               | 63,203,919 |   |      |   | 62,232,077 |      |  |   | 61,108,231 |   |  |      | 60,270,451 |   |  |   | 60,656,705 |  
|                                                                             |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Foreign:                                                                     |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Public sector                                                                |  |               | 236,290    |   |      |   | 164,495    |      |  |   | 163,685    |   |  |      | 121,611    |   |  |   | 130,426    |  
|Financial institutions                                                       |  |               | 4,067,764  |   |      |   | 3,880,655  |      |  |   | 3,450,482  |   |  |      | 2,500,624  |   |  |   | 2,012,751  |  
|Commerce and industry                                                        |  |               | 20,451,545 |   |      |   | 20,010,729 |      |  |   | 16,435,047 |   |  |      | 13,502,283 |   |  |   | 10,364,685 |  
|Lease financing                                                              |  |               | 357,072    |   |      |   | 308,128    |      |  |   | 267,394    |   |  |      | 208,099    |   |  |   | 191,966    |  
|Others                                                                       |  |               | 1,481,455  |   |      |   | 1,375,624  |      |  |   | 947,826    |   |  |      | 793,653    |   |  |   | 706,175    |  
|                                                                             |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Total foreign                                                                |  |               | 26,594,126 |   |      |   | 25,739,631 |      |  |   | 21,264,434 |   |  |      | 17,126,270 |   |  |   | 13,406,003 |  
|                                                                             |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Gross loans and advances                                                     |  |               | 89,798,045 |   |      |   | 87,971,708 |      |  |   | 82,372,665 |   |  |      | 77,396,721 |   |  |   | 74,062,708 |  
|Adjust: Unearned income, unamortized premiums-net and deferred loan fees-net |  |               | (212,957   | ) |      |   | (206,440   | )    |  |   | (177,018   | ) |  |      | (147,186   | ) |  |   | (144,731   | )
|Less: Allowance for loan losses                                              |  |               | (722,717   | ) |      |   | (793,552   | )    |  |   | (950,665   | ) |  |      | (1,262,478 | ) |  |   | (1,381,164 | )
|                                                                             |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  
|Net loans and advances                                                       |  | ¥             | 88,862,371 |   |      | ¥ | 86,971,716 |      |  | ¥ | 81,244,982 |   |  | ¥    | 75,987,057 |   |  | ¥ | 72,536,813 |  
|                                                                             |  |               |            |   |      |   |            |      |  |   |            |   |  |      |            |   |  |   |            |  



|(1) | The balance in Consumer mainly consists of housing loans. The housing loan balances amounted to ¥13,984,755 million, ¥14,087,453 million, ¥14,420,225
million, ¥14,520,154 million and ¥14,574,702 million at March 31, 2016, 2015, 2014, 2013 and 2012, respectively.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



A-6



---

##### Table of Contents

Maturities and Sensitivities of Loans and Advances to Changes in Interest Rates

The following table shows the maturities of loans and advances by the domicile and industry type of the borrower at
March 31, 2016.



|                                                      |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 
|----------------------------------------------------- |  | ----------------------- | ---------- |  | ----------------------------------------------- | - | ---------- | -------------------- |  | - | ---------- |  |  | - | ---------- | 
|                                                      |  | Maturity                |           
|                                                      |  | Not later than one year |            |  | Later than oneyear and not laterthan five years |   |            | Later than fiveyears |  |   | Total      | 
|                                                      |  | (In millions)           |           
|Domestic:                                             |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 
|Manufacturing                                         |  | ¥                       | 4,659,409  |  |                                                 | ¥ | 2,798,987  |                      |  | ¥ | 840,180    |  |  | ¥ | 8,298,576  | 
|Agriculture, forestry, fisheries and mining           |  |                         | 41,078     |  |                                                 |   | 104,579    |                      |  |   | 38,657     |  |  |   | 184,314    | 
|Construction                                          |  |                         | 663,794    |  |                                                 |   | 377,251    |                      |  |   | 128,855    |  |  |   | 1,169,900  | 
|Transportation, communications and public enterprises |  |                         | 1,436,061  |  |                                                 |   | 2,797,106  |                      |  |   | 1,025,732  |  |  |   | 5,258,899  | 
|Wholesale and retail                                  |  |                         | 3,030,344  |  |                                                 |   | 2,037,420  |                      |  |   | 480,339    |  |  |   | 5,548,103  | 
|Finance and insurance                                 |  |                         | 1,885,815  |  |                                                 |   | 629,164    |                      |  |   | 169,886    |  |  |   | 2,684,865  | 
|Real estate and goods rental and leasing              |  |                         | 2,308,833  |  |                                                 |   | 4,210,380  |                      |  |   | 3,068,544  |  |  |   | 9,587,757  | 
|Services                                              |  |                         | 1,757,837  |  |                                                 |   | 1,946,431  |                      |  |   | 1,256,084  |  |  |   | 4,960,352  | 
|Municipalities                                        |  |                         | 561,606    |  |                                                 |   | 472,629    |                      |  |   | 340,071    |  |  |   | 1,374,306  | 
|Lease financing                                       |  |                         | 718,585    |  |                                                 |   | 1,275,154  |                      |  |   | 218,309    |  |  |   | 2,212,048  | 
|Consumer                                              |  |                         | 3,506,063  |  |                                                 |   | 4,342,926  |                      |  |   | 11,086,532 |  |  |   | 18,935,521 | 
|Others                                                |  |                         | 534,104    |  |                                                 |   | 750,080    |                      |  |   | 1,705,094  |  |  |   | 2,989,278  | 
|                                                      |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 
|Total domestic                                        |  |                         | 21,103,529 |  |                                                 |   | 21,742,107 |                      |  |   | 20,358,283 |  |  |   | 63,203,919 | 
|                                                      |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 
|Foreign:                                              |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 
|Public sector                                         |  |                         | 17,092     |  |                                                 |   | 143,891    |                      |  |   | 75,307     |  |  |   | 236,290    | 
|Financial institutions                                |  |                         | 1,731,437  |  |                                                 |   | 1,805,642  |                      |  |   | 530,685    |  |  |   | 4,067,764  | 
|Commerce and industry                                 |  |                         | 6,316,998  |  |                                                 |   | 9,501,993  |                      |  |   | 4,632,554  |  |  |   | 20,451,545 | 
|Lease financing                                       |  |                         | 62,349     |  |                                                 |   | 175,748    |                      |  |   | 118,975    |  |  |   | 357,072    | 
|Others                                                |  |                         | 506,333    |  |                                                 |   | 838,710    |                      |  |   | 136,412    |  |  |   | 1,481,455  | 
|                                                      |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 
|Total foreign                                         |  |                         | 8,634,209  |  |                                                 |   | 12,465,984 |                      |  |   | 5,493,933  |  |  |   | 26,594,126 | 
|                                                      |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 
|Total                                                 |  | ¥                       | 29,737,738 |  |                                                 | ¥ | 34,208,091 |                      |  | ¥ | 25,852,216 |  |  | ¥ | 89,798,045 | 
|                                                      |  |                         |            |  |                                                 |   |            |                      |  |   |            |  |  |   |            | 

The above loans and advances due after one year which had predetermined interest rates and floating or
adjustable interest rates at March 31, 2016 are shown below:



|                            |  |               |            |  |         |   |            |       |  |   |            | 
|--------------------------- |  | ------------- | ---------- |  | ------- | - | ---------- | ----- |  | - | ---------- | 
|                            |  | Domestic      |            |  | Foreign |   |            | Total | 
|                            |  | (In millions) |           
|Predetermined rate          |  | ¥             | 13,334,489 |  |         | ¥ | 2,308,422  |       |  | ¥ | 15,642,911 | 
|Floating or adjustable rate |  |               | 28,765,901 |  |         |   | 15,651,495 |       |  |   | 44,417,396 | 
|                            |  |               |            |  |         |   |            |       |  |   |            | 
|Total                       |  | ¥             | 42,100,390 |  |         | ¥ | 17,959,917 |       |  | ¥ | 60,060,307 | 
|                            |  |               |            |  |         |   |            |       |  |   |            | 



A-7



---

##### Table of Contents

Impaired Loans and Advances

Our credit risk elements analyzed by categories for loans and advances differ from those required by the U.S. Securities and Exchange
Commission. Our impaired loans and advances are comprised of potentially bankrupt, effectively bankrupt and bankrupt (loans and advances), past due three months or more (loans), restructured (loans) and
other impaired (loans and advances). Potentially bankrupt, effectively bankrupt and bankrupt (loans and advances) comprises of loans and advances to the borrowers that are perceived to have a high risk of falling into
bankruptcy, may not have been legally or formally declared bankrupt but are essentially bankrupt, or have been legally or formally declared bankrupt. Loans classified as past due three months or more (loans) represent those loans that
are three months or more past due as to principal or interest, which are not included in potentially bankrupt, effectively bankrupt and bankrupt (loans and advances). The category restructured (loans) comprises of loans not
included above for which the terms of the loans have been modified to grant concessions because of problems with the borrower. Examples of modifications to grant concessions include reductions of the original interest rate, deferrals of interest
payments, deductions of the contractual repayment amounts and extensions of principal repayments such as the extension of the repayment date and the suspension of contracted repayments. Other impaired (loans and advances) represent
impaired loans and advances, which are not included in potentially bankrupt, effectively bankrupt and bankrupt (loans and advances), past due three months or more (loans), or restructured (loans), but for which
information about credit problems cause management to classify them as impaired loans and advances. All loans and advances for which management has serious doubts about the ability of the borrowers to comply in the near future with the repayment
terms are included in impaired loans and advances.

An allowance is recorded if there is objective evidence of impairment and
the carrying value of the loans and advances exceeds the present value of their estimated future cash flows discounted at the original effective interest rate. Cash receipts on impaired loans and advances are recorded as a credit to the balance of
loans and advances on the statement of financial position. To the extent that cash receipts are different from expectations built into the calculation of the recoverable amount of the loans and advances, the amount of allowance for loan losses is
revised. In accordance with IFRS, the accrual of interest as per the contractual terms is discontinued when loans and advances are determined to be impaired. Interest income recognized in the consolidated income statement on impaired loans and
advances represents the accretion of the net present value of the written down amount due to the passage of time based on the original effective interest rate of the loans and advances.



A-8



---

##### Table of Contents

The following table shows the distribution of impaired loans and advances by
potentially bankrupt, effectively bankrupt and bankrupt (loans and advances), past due three months or more (loans), restructured (loans), and other impaired (loans and advances) at March 31, 2016,
2015, 2014, 2013 and 2012 by the domicile and industry type of the borrowers.



|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|----------------------------------------------------------------------------- |  | ------------- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | - |  | ---- | ---------- | - |  | - | ---------- | -
|                                                                              |  | At March 31,  |          
|                                                                              |  | 2016          |           |   | 2015 |   |           | 2014 |  |   | 2013      |   |  | 2012 |           
|                                                                              |  | (In millions) |          
|Potentially bankrupt, effectively bankrupt and bankrupt (loans and advances): |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Domestic:                                                                     |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Manufacturing                                                                 |  | ¥             | 119,318   |   |      | ¥ | 149,686   |      |  | ¥ | 183,257   |   |  | ¥    | 215,600    |   |  | ¥ | 187,982    |  
|Agriculture, forestry, fisheries and mining                                   |  |               | 2,843     |   |      |   | 7,146     |      |  |   | 3,251     |   |  |      | 5,210      |   |  |   | 5,295      |  
|Construction                                                                  |  |               | 25,932    |   |      |   | 36,903    |      |  |   | 69,144    |   |  |      | 101,255    |   |  |   | 118,413    |  
|Transportation, communications and public enterprises                         |  |               | 38,008    |   |      |   | 52,168    |      |  |   | 56,782    |   |  |      | 109,449    |   |  |   | 68,768     |  
|Wholesale and retail                                                          |  |               | 125,241   |   |      |   | 156,753   |      |  |   | 208,491   |   |  |      | 232,779    |   |  |   | 225,399    |  
|Finance and insurance                                                         |  |               | 8,302     |   |      |   | 9,551     |      |  |   | 13,378    |   |  |      | 15,822     |   |  |   | 13,350     |  
|Real estate and goods rental and leasing                                      |  |               | 133,324   |   |      |   | 198,714   |      |  |   | 291,665   |   |  |      | 449,163    |   |  |   | 499,485    |  
|Services                                                                      |  |               | 126,781   |   |      |   | 161,384   |      |  |   | 192,191   |   |  |      | 203,197    |   |  |   | 213,142    |  
|Lease financing                                                               |  |               | 16,122    |   |      |   | 18,522    |      |  |   | 21,079    |   |  |      | 17,030     |   |  |   | 10,742     |  
|Consumer                                                                      |  |               | 213,931   |   |      |   | 223,464   |      |  |   | 238,563   |   |  |      | 270,060    |   |  |   | 312,181    |  
|Others                                                                        |  |               | 32,503    |   |      |   | 43,443    |      |  |   | 59,812    |   |  |      | 69,859     |   |  |   | 67,174     |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Total domestic                                                                |  |               | 842,305   |   |      |   | 1,057,734 |      |  |   | 1,337,613 |   |  |      | 1,689,424  |   |  |   | 1,721,931  |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Foreign:                                                                      |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Public sector                                                                 |  |               | 31        |   |      |   | 14        |      |  |   | 14        |   |  |      | 14         |   |  |   | 14         |  
|Financial institutions                                                        |  |               | 28        |   |      |   | 19,720    |      |  |   | 2,647     |   |  |      | 6,191      |   |  |   | 19,383     |  
|Commerce and industry                                                         |  |               | 148,475   |   |      |   | 146,821   |      |  |   | 131,254   |   |  |      | 178,022    |   |  |   | 162,509    |  
|Lease financing                                                               |  |               | 11,104    |   |      |   | 8,969     |      |  |   | 8,623     |   |  |      | 7,522      |   |  |   | 4,140      |  
|Others                                                                        |  |               | 5,682     |   |      |   | 6,152     |      |  |   | 4,566     |   |  |      | 2,271      |   |  |   | 3,019      |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Total foreign                                                                 |  |               | 165,320   |   |      |   | 181,676   |      |  |   | 147,104   |   |  |      | 194,020    |   |  |   | 189,065    |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Total                                                                         |  |               | 1,007,625 |   |      |   | 1,239,410 |      |  |   | 1,484,717 |   |  |      | 1,883,444  |   |  |   | 1,910,996  |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Past due three months or more (loans):                                        |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Domestic                                                                      |  |               | 21,861    |   |      |   | 23,586    |      |  |   | 25,959    |   |  |      | 27,102     |   |  |   | 32,069     |  
|Foreign                                                                       |  |               | 7,962     |   |      |   | 398       |      |  |   | 437       |   |  |      | 557        |   |  |   | 1,130      |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Total                                                                         |  |               | 29,823    |   |      |   | 23,984    |      |  |   | 26,396    |   |  |      | 27,659     |   |  |   | 33,199     |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Restructured (loans):                                                         |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Domestic                                                                      |  |               | 164,035   |   |      |   | 144,628   |      |  |   | 247,351   |   |  |      | 337,494    |   |  |   | 390,060    |  
|Foreign                                                                       |  |               | 22,401    |   |      |   | 43,330    |      |  |   | 37,475    |   |  |      | 29,650     |   |  |   | 24,644     |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Total                                                                         |  |               | 186,436   |   |      |   | 187,958   |      |  |   | 284,826   |   |  |      | 367,144    |   |  |   | 414,704    |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Other impaired (loans and advances):                                          |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Domestic                                                                      |  |               | 126,211   |   |      |   | 140,858   |      |  |   | 152,873   |   |  |      | 204,775    |   |  |   | 255,615    |  
|Foreign                                                                       |  |               | 2,492     |   |      |   | 5,892     |      |  |   | 1         |   |  |      | 119        |   |  |   | 2,588      |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Total                                                                         |  |               | 128,703   |   |      |   | 146,750   |      |  |   | 152,874   |   |  |      | 204,894    |   |  |   | 258,203    |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Gross impaired loans and advances                                             |  |               | 1,352,587 |   |      |   | 1,598,102 |      |  |   | 1,948,813 |   |  |      | 2,483,141  |   |  |   | 2,617,102  |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Less: Allowance for loan losses for impaired loans and advances               |  |               | (613,510  | ) |      |   | (699,207  | )    |  |   | (857,095  | ) |  |      | (1,144,130 | ) |  |   | (1,234,299 | )
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  
|Net impaired loans and advances                                               |  | ¥             | 739,077   |   |      | ¥ | 898,895   |      |  | ¥ | 1,091,718 |   |  | ¥    | 1,339,011  |   |  | ¥ | 1,382,803  |  
|                                                                              |  |               |           |   |      |   |           |      |  |   |           |   |  |      |            |   |  |   |            |  



A-9



---

##### Table of Contents

Interest Foregone on Impaired Loans and Advances

Interest income which would have been accrued at the original terms on domestic impaired loans and advances during the fiscal year ended
March 31, 2016 was ¥33.8 billion, of which ¥19.0 billion was included in profit or loss for the fiscal year then ended. Interest income which would have been accrued at the original terms on foreign impaired loans and advances during the
fiscal year ended March 31, 2016 was ¥3.1 billion, of which ¥1.5 billion was included in profit or loss for the fiscal year then ended.

Cross-border Outstanding

Cross-border outstandings are defined as
loans, acceptances, interest-earning deposits with other banks, other interest-earning investments and any other monetary assets denominated in Japanese yen or other non-local currencies. Local currency outstandings are netted out from cross-border
outstandings. This cross-border disclosure is based on the reports to the BOJ required under Japanese foreign exchange-related laws. The following tables list the country for which cross-border outstandings exceeded 0.75% of consolidated total
assets at March 31, 2016 and 2015. There were no cross-border outstandings to borrowers in any foreign country which in total exceeded 0.75% of consolidated total assets at March 31, 2014.



|               |  |                                   |       |  |       |   |         |        |  |   |           |  |  |                  |           |  |                    |  |      |   |  |   |           | 
|-------------- |  | --------------------------------- | ----- |  | ----- | - | ------- | ------ |  | - | --------- |  |  | ---------------- | --------- |  | ------------------ |  | ---- | - |  | - | --------- | 
|               |  | At March 31, 2016                 |      
|               |  | Publicinstitutions                |       |  | Banks |   |         | Others |  |   | Total     |  |  | % of totalassets |           |  | Undrawncommitments | 
|               |  | (In millions, except percentages) |      
|United Kingdom |  | ¥                                 | 1,852 |  |       | ¥ | 556,271 |        |  | ¥ | 1,215,588 |  |  | ¥                | 1,773,711 |  |                    |  | 0.98 | % |  | ¥ | 1,422,058 | 



|               |  |                                   |       |  |       |   |         |        |  |   |           |  |  |                  |           |  |                    |  |      |   |  |   |           | 
|-------------- |  | --------------------------------- | ----- |  | ----- | - | ------- | ------ |  | - | --------- |  |  | ---------------- | --------- |  | ------------------ |  | ---- | - |  | - | --------- | 
|               |  | At March 31, 2015                 |      
|               |  | Publicinstitutions                |       |  | Banks |   |         | Others |  |   | Total     |  |  | % of totalassets |           |  | Undrawncommitments | 
|               |  | (In millions, except percentages) |      
|United Kingdom |  | ¥                                 | 7,483 |  |       | ¥ | 775,915 |        |  | ¥ | 1,007,531 |  |  | ¥                | 1,790,929 |  |                    |  | 0.99 | % |  | ¥ | 1,155,306 | 

Loan Concentrations

At March 31, 2016, there were no concentrations of loans and advances to a single industry group of borrowers, as defined by the BOJ
industry segment loan and advance classifications, which exceeded 10% of our consolidated total loans and advances, except for loans and advances in a category disclosed in the table of outstanding loans and advances above.



A-10



---

##### Table of Contents

|IV. | Summary of Loan Loss Experience
|--- | -------------------------------

The following table shows an analysis of our loan loss experience by the borrowers domicile and industry type for the fiscal years ended March 31, 2016, 2015, 2014, 2013 and 2012.



|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|----------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | --------- | - |  | ---- | --------- | - |  | - | --------- | -
|                                                                        |  | For the fiscal year ended March 31, |        
|                                                                        |  | 2016                                |         |   | 2015 |   |         | 2014 |  |   | 2013      |   |  | 2012 |          
|                                                                        |  | (In millions, except percentages)   |        
|                                                                        |  |                                     |         |   |     
|Allowance for loan losses at beginning of period                        |  | ¥                                   | 793,552 |   |      | ¥ | 950,665 |      |  | ¥ | 1,262,478 |   |  | ¥    | 1,381,164 |   |  | ¥ | 1,587,133 |  
|Provision (credit) for loan losses                                      |  |                                     | 118,750 |   |      |   | 79,552  |      |  |   | (25,806   | ) |  |      | 138,375   |   |  |   | 144,022   |  
|Charge-offs:                                                            |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Domestic:                                                               |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Manufacturing                                                           |  |                                     | 20,992  |   |      |   | 26,516  |      |  |   | 25,610    |   |  |      | 16,037    |   |  |   | 46,229    |  
|Agriculture, forestry, fisheries and mining                             |  |                                     | 33      |   |      |   | 112     |      |  |   | 187       |   |  |      | 553       |   |  |   | 173       |  
|Construction                                                            |  |                                     | 6,407   |   |      |   | 8,593   |      |  |   | 20,958    |   |  |      | 7,848     |   |  |   | 14,204    |  
|Transportation, communications and public enterprises                   |  |                                     | 5,891   |   |      |   | 8,662   |      |  |   | 5,309     |   |  |      | 7,062     |   |  |   | 11,296    |  
|Wholesale and retail                                                    |  |                                     | 14,824  |   |      |   | 27,357  |      |  |   | 27,944    |   |  |      | 18,062    |   |  |   | 64,492    |  
|Finance and insurance                                                   |  |                                     | 423     |   |      |   | 1,117   |      |  |   | 533       |   |  |      | 354       |   |  |   | 679       |  
|Real estate and goods rental and leasing                                |  |                                     | 21,017  |   |      |   | 54,003  |      |  |   | 73,025    |   |  |      | 36,003    |   |  |   | 61,683    |  
|Services                                                                |  |                                     | 14,396  |   |      |   | 21,143  |      |  |   | 30,970    |   |  |      | 17,325    |   |  |   | 35,498    |  
|Lease financing                                                         |  |                                     | 651     |   |      |   | 1,433   |      |  |   | 1,582     |   |  |      | 3,689     |   |  |   | 3,319     |  
|Consumer                                                                |  |                                     | 87,969  |   |      |   | 88,795  |      |  |   | 93,616    |   |  |      | 127,804   |   |  |   | 64,329    |  
|Others                                                                  |  |                                     | 828     |   |      |   | 2,932   |      |  |   | 3,300     |   |  |      | 6,400     |   |  |   | 4,705     |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total domestic                                                          |  |                                     | 173,431 |   |      |   | 240,663 |      |  |   | 283,034   |   |  |      | 241,137   |   |  |   | 306,607   |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Foreign:                                                                |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Financial institutions                                                  |  |                                     |        |   |      |   | 1,017   |      |  |   | 599       |   |  |      | 4,063     |   |  |   | 14,784    |  
|Commerce and industry                                                   |  |                                     | 13,236  |   |      |   | 4,571   |      |  |   | 14,959    |   |  |      | 13,735    |   |  |   | 33,173    |  
|Lease financing                                                         |  |                                     | 3       |   |      |   | 167     |      |  |   | 1,292     |   |  |      | 2,060     |   |  |   | 38        |  
|Others                                                                  |  |                                     | 6,979   |   |      |   | 3,478   |      |  |   | 2,797     |   |  |      | 3,203     |   |  |   | 623       |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total foreign                                                           |  |                                     | 20,218  |   |      |   | 9,233   |      |  |   | 19,647    |   |  |      | 23,061    |   |  |   | 48,618    |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total                                                                   |  |                                     | 193,649 |   |      |   | 249,896 |      |  |   | 302,681   |   |  |      | 264,198   |   |  |   | 355,225   |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Recoveries:                                                             |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Domestic:                                                               |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Manufacturing                                                           |  |                                     | 80      |   |      |   | 62      |      |  |   | 12        |   |  |      | 14        |   |  |   | 252       |  
|Construction                                                            |  |                                     | 6       |   |      |   | 17      |      |  |   | 16        |   |  |      | 21        |   |  |   | 64        |  
|Transportation, communications and public enterprises                   |  |                                     | 5       |   |      |   | 14      |      |  |   | 3         |   |  |      | 12        |   |  |   | 52        |  
|Wholesale and retail                                                    |  |                                     | 45      |   |      |   | 72      |      |  |   | 19        |   |  |      | 22        |   |  |   | 328       |  
|Finance and insurance                                                   |  |                                     | 2       |   |      |   | 1       |      |  |   |          |   |  |      | 19        |   |  |   | 3         |  
|Real estate and goods rental and leasing                                |  |                                     | 55      |   |      |   | 47      |      |  |   | 20        |   |  |      | 19        |   |  |   | 283       |  
|Services                                                                |  |                                     | 61      |   |      |   | 63      |      |  |   | 33        |   |  |      | 16        |   |  |   | 142       |  
|Consumer                                                                |  |                                     | 9,223   |   |      |   | 9,234   |      |  |   | 9,186     |   |  |      | 9,976     |   |  |   | 3,453     |  
|Others                                                                  |  |                                     |        |   |      |   | 7       |      |  |   | 4         |   |  |      | 4         |   |  |   | 18        |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total domestic                                                          |  |                                     | 9,477   |   |      |   | 9,517   |      |  |   | 9,293     |   |  |      | 10,103    |   |  |   | 4,595     |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Foreign:                                                                |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Financial institutions                                                  |  |                                     | 109     |   |      |   |        |      |  |   | 25        |   |  |      | 2         |   |  |   | 3         |  
|Commerce and industry                                                   |  |                                     | 335     |   |      |   | 14      |      |  |   | 3         |   |  |      | 18        |   |  |   | 187       |  
|Others                                                                  |  |                                     | 427     |   |      |   | 366     |      |  |   | 334       |   |  |      | 313       |   |  |   | 17        |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total foreign                                                           |  |                                     | 871     |   |      |   | 380     |      |  |   | 362       |   |  |      | 333       |   |  |   | 207       |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Total                                                                   |  |                                     | 10,348  |   |      |   | 9,897   |      |  |   | 9,655     |   |  |      | 10,436    |   |  |   | 4,802     |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Net charge-offs                                                         |  |                                     | 183,301 |   |      |   | 239,999 |      |  |   | 293,026   |   |  |      | 253,762   |   |  |   | 350,423   |  
|Others(1)                                                               |  |                                     | (6,284  | ) |      |   | 3,334   |      |  |   | 7,019     |   |  |      | (3,299    | ) |  |   | 432       |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Allowance for loan losses at end of period                              |  | ¥                                   | 722,717 |   |      | ¥ | 793,552 |      |  | ¥ | 950,665   |   |  | ¥    | 1,262,478 |   |  | ¥ | 1,381,164 |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|                                                                        |  |                                     |         |   |     
|Ratio of net charge-offs to average loans outstanding during the period |  |                                     | 0.20    | % |      |   | 0.28    | %    |  |   | 0.36      | % |  |      | 0.34      | % |  |   | 0.47      | %
|                                                                        |  |                                     |         |   |     
|Allowance for loan losses applicable to foreign activities:             |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Balance at beginning of period                                          |  | ¥                                   | 100,783 |   |      | ¥ | 73,030  |      |  | ¥ | 74,868    |   |  | ¥    | 87,344    |   |  | ¥ | 108,612   |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Balance at end of period                                                |  | ¥                                   | 134,664 |   |      | ¥ | 100,783 |      |  | ¥ | 73,030    |   |  | ¥    | 74,868    |   |  | ¥ | 87,344    |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  
|Provision for loan losses                                               |  | ¥                                   | 60,002  |   |      | ¥ | 32,712  |      |  | ¥ | 10,462    |   |  | ¥    | 1,692     |   |  | ¥ | 30,675    |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |   |  |      |           |   |  |   |           |  



|(1) | Others mainly include foreign exchange translations for the fiscal years ended March 31, 2016 and 2015 and 2014, whereas the amount for the fiscal year ended March 31,
2013 mainly includes foreign exchange translations as well as the exclusion of the allowance for loan losses related to ORIX Credit Corporations, as the Bank transferred all of its shares of ORIX Credit Corporation to ORIX Corporation in June 2012.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



A-11



---

##### Table of Contents

The following table shows an allocation of the allowance for loan losses by the
borrowers domicile and industry type at March 31, 2016, 2015, 2014, 2013 and 2012.



|                                                      |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           |  |  |  |        |  
|----------------------------------------------------- |  | --------------------------------- | ------- |  | ------------------------------------- |  | ------ | ------ |  | - | ------------------------------------- |  |  | ------ | ------ | - | ------------------------------------- | - | ------- | ------ |  |  | ------------------------------------- | - |  | ------ | --------- |  | ------------------------------------- |  | ------ | - |  | - | --------- |  |  |  | ------ | -
|                                                      |  | At March 31,                      |        
|                                                      |  | 2016                              |         |  | 2015                                  |  |        | 2014   |  |   | 2013                                  |  |  | 2012   |       
|                                                      |  | Amount                            |         |  | % ofloans ineachcategoryto totalloans |  |        | Amount |  |   | % ofloans ineachcategoryto totalloans |  |  | Amount |        |   | % ofloans ineachcategoryto totalloans |   |         | Amount |  |  | % ofloans ineachcategoryto totalloans |   |  | Amount |           |  | % ofloans ineachcategoryto totalloans | 
|                                                      |  | (In millions, except percentages) |        
|Domestic:                                             |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           | 
|Manufacturing                                         |  | ¥                                 | 63,720  |  |                                       |  | 9.24   | %      |  | ¥ | 82,938                                |  |  |        | 9.16   | % |                                       | ¥ | 113,463 |        |  |  | 9.73                                  | % |  | ¥      | 140,424   |  |                                       |  | 10.43  | % |  | ¥ | 126,773   |  |  |  | 11.43  | %
|Agriculture, forestry, fisheries and mining           |  |                                   | 2,712   |  |                                       |  | 0.21   | %      |  |   | 2,673                                 |  |  |        | 0.20   | % |                                       |   | 3,310   |        |  |  | 0.21                                  | % |  |        | 3,968     |  |                                       |  | 0.21   | % |  |   | 4,374     |  |  |  | 0.21   | %
|Construction                                          |  |                                   | 15,212  |  |                                       |  | 1.30   | %      |  |   | 22,532                                |  |  |        | 1.31   | % |                                       |   | 40,289  |        |  |  | 1.40                                  | % |  |        | 63,032    |  |                                       |  | 1.51   | % |  |   | 69,605    |  |  |  | 1.73   | %
|Transportation, communications and public enterprises |  |                                   | 25,119  |  |                                       |  | 5.86   | %      |  |   | 30,555                                |  |  |        | 5.88   | % |                                       |   | 27,196  |        |  |  | 6.17                                  | % |  |        | 50,789    |  |                                       |  | 6.08   | % |  |   | 47,723    |  |  |  | 5.96   | %
|Wholesale and retail                                  |  |                                   | 73,230  |  |                                       |  | 6.18   | %      |  |   | 84,941                                |  |  |        | 6.44   | % |                                       |   | 116,862 |        |  |  | 6.68                                  | % |  |        | 151,075   |  |                                       |  | 6.96   | % |  |   | 159,740   |  |  |  | 7.40   | %
|Finance and insurance                                 |  |                                   | 6,886   |  |                                       |  | 2.99   | %      |  |   | 7,990                                 |  |  |        | 3.26   | % |                                       |   | 11,209  |        |  |  | 3.08                                  | % |  |        | 12,373    |  |                                       |  | 3.51   | % |  |   | 14,045    |  |  |  | 2.93   | %
|Real estate and goods rental and leasing              |  |                                   | 94,669  |  |                                       |  | 10.68  | %      |  |   | 127,205                               |  |  |        | 9.97   | % |                                       |   | 194,706 |        |  |  | 9.85                                  | % |  |        | 312,614   |  |                                       |  | 10.53  | % |  |   | 338,162   |  |  |  | 10.78  | %
|Services                                              |  |                                   | 60,735  |  |                                       |  | 5.52   | %      |  |   | 77,829                                |  |  |        | 5.43   | % |                                       |   | 96,465  |        |  |  | 5.89                                  | % |  |        | 132,377   |  |                                       |  | 5.69   | % |  |   | 144,984   |  |  |  | 5.50   | %
|Municipalities                                        |  |                                   | 1       |  |                                       |  | 1.53   | %      |  |   | 1                                     |  |  |        | 1.54   | % |                                       |   | 1       |        |  |  | 1.55                                  | % |  |        | 1         |  |                                       |  | 1.64   | % |  |   | 2         |  |  |  | 1.67   | %
|Lease financing                                       |  |                                   | 11,567  |  |                                       |  | 2.46   | %      |  |   | 13,600                                |  |  |        | 2.51   | % |                                       |   | 14,487  |        |  |  | 2.59                                  | % |  |        | 17,151    |  |                                       |  | 2.66   | % |  |   | 11,942    |  |  |  | 2.78   | %
|Consumer                                              |  |                                   | 208,274 |  |                                       |  | 21.09  | %      |  |   | 208,661                               |  |  |        | 21.39  | % |                                       |   | 215,882 |        |  |  | 23.17                                 | % |  |        | 250,282   |  |                                       |  | 24.33  | % |  |   | 315,211   |  |  |  | 25.90  | %
|Others                                                |  |                                   | 25,928  |  |                                       |  | 3.32   | %      |  |   | 33,844                                |  |  |        | 3.65   | % |                                       |   | 43,765  |        |  |  | 3.87                                  | % |  |        | 53,524    |  |                                       |  | 4.32   | % |  |   | 61,259    |  |  |  | 5.61   | %
|                                                      |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           |  |  |  |        |  
|Total domestic                                        |  |                                   | 588,053 |  |                                       |  | 70.38  | %      |  |   | 692,769                               |  |  |        | 70.74  | % |                                       |   | 877,635 |        |  |  | 74.19                                 | % |  |        | 1,187,610 |  |                                       |  | 77.87  | % |  |   | 1,293,820 |  |  |  | 81.90  | %
|                                                      |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           |  |  |  |        |  
|Foreign:                                              |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           |  |  |  |        |  
|Public sector                                         |  |                                   | 105     |  |                                       |  | 0.26   | %      |  |   | 48                                    |  |  |        | 0.19   | % |                                       |   | 303     |        |  |  | 0.20                                  | % |  |        | 209       |  |                                       |  | 0.16   | % |  |   | 568       |  |  |  | 0.18   | %
|Financial institutions                                |  |                                   | 3,347   |  |                                       |  | 4.53   | %      |  |   | 1,871                                 |  |  |        | 4.41   | % |                                       |   | 3,325   |        |  |  | 4.19                                  | % |  |        | 5,454     |  |                                       |  | 3.23   | % |  |   | 15,217    |  |  |  | 2.72   | %
|Commerce and industry                                 |  |                                   | 117,671 |  |                                       |  | 22.78  | %      |  |   | 86,007                                |  |  |        | 22.75  | % |                                       |   | 60,646  |        |  |  | 19.95                                 | % |  |        | 63,261    |  |                                       |  | 17.45  | % |  |   | 64,014    |  |  |  | 13.99  | %
|Lease financing                                       |  |                                   | 3,998   |  |                                       |  | 0.40   | %      |  |   | 4,654                                 |  |  |        | 0.35   | % |                                       |   | 3,285   |        |  |  | 0.32                                  | % |  |        | 3,195     |  |                                       |  | 0.27   | % |  |   | 4,324     |  |  |  | 0.26   | %
|Others                                                |  |                                   | 9,543   |  |                                       |  | 1.65   | %      |  |   | 8,203                                 |  |  |        | 1.56   | % |                                       |   | 5,471   |        |  |  | 1.15                                  | % |  |        | 2,749     |  |                                       |  | 1.02   | % |  |   | 3,221     |  |  |  | 0.95   | %
|                                                      |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           |  |  |  |        |  
|Total foreign                                         |  |                                   | 134,664 |  |                                       |  | 29.62  | %      |  |   | 100,783                               |  |  |        | 29.26  | % |                                       |   | 73,030  |        |  |  | 25.81                                 | % |  |        | 74,868    |  |                                       |  | 22.13  | % |  |   | 87,344    |  |  |  | 18.10  | %
|                                                      |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           |  |  |  |        |  
|Total                                                 |  | ¥                                 | 722,717 |  |                                       |  | 100.00 | %      |  | ¥ | 793,552                               |  |  |        | 100.00 | % |                                       | ¥ | 950,665 |        |  |  | 100.00                                | % |  | ¥      | 1,262,478 |  |                                       |  | 100.00 | % |  | ¥ | 1,381,164 |  |  |  | 100.00 | %
|                                                      |  |                                   |         |  |                                       |  |        |        |  |   |                                       |  |  |        |        |   |                                       |   |         |        |  |  |                                       |   |  |        |           |  |                                       |  |        |   |  |   |           |  |  |  |        |  



A-12



---

##### Table of Contents

|V. | Deposits
|-- | --------

The following
table shows the average amount of, and the average rate paid on, the following deposit categories for the fiscal years ended March 31, 2016, 2015 and 2014.



|                                     |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  
|------------------------------------ |  | ----------------------------------- | ----------- |  | ----------- |  | ---- | -------------- |  | - | ----------- |  |  | -------------- | ---- | - | ----------- | - | ----------- |  |  |  | ---- | -
|                                     |  | For the fiscal year ended March 31, |            
|                                     |  | 2016                                |             |  | 2015        |  |      | 2014           | 
|                                     |  | Average amount                      |             |  | Averagerate |  |      | Average amount |  |   | Averagerate |  |  | Average amount |      |   | Averagerate |  
|                                     |  | (In millions, except percentages)   |            
|Domestic offices:                    |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  
|Non-interest-bearing demand deposits |  | ¥                                   | 13,840,697  |  |             |  |     |                |  | ¥ | 12,747,566  |  |  |                |     |   |             | ¥ | 12,258,970  |  |  |  |     |  
|Interest-bearing demand deposits     |  |                                     | 42,036,200  |  |             |  | 0.02 | %              |  |   | 38,953,418  |  |  |                | 0.02 | % |             |   | 37,248,316  |  |  |  | 0.02 | %
|Deposits at notice                   |  |                                     | 779,789     |  |             |  | 0.02 | %              |  |   | 747,898     |  |  |                | 0.03 | % |             |   | 809,233     |  |  |  | 0.03 | %
|Time deposits                        |  |                                     | 23,703,225  |  |             |  | 0.10 | %              |  |   | 24,202,595  |  |  |                | 0.10 | % |             |   | 24,962,120  |  |  |  | 0.10 | %
|Negotiable certificates of deposit   |  |                                     | 7,027,345   |  |             |  | 0.08 | %              |  |   | 5,969,374   |  |  |                | 0.09 | % |             |   | 5,385,616   |  |  |  | 0.11 | %
|Others                               |  |                                     | 4,911,611   |  |             |  | 0.23 | %              |  |   | 4,524,551   |  |  |                | 0.24 | % |             |   | 3,970,880   |  |  |  | 0.22 | %
|                                     |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  
|Total domestic offices               |  |                                     | 92,298,867  |  |             |  |      |                |  |   | 87,145,402  |  |  |                |      |   |             |   | 84,635,135  |  |  |  |      |  
|                                     |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  
|Foreign offices:                     |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  
|Non-interest-bearing demand deposits |  |                                     | 874,577     |  |             |  |     |                |  |   | 692,920     |  |  |                |     |   |             |   | 513,743     |  |  |  |     |  
|Interest-bearing demand deposits     |  |                                     | 1,859,753   |  |             |  | 0.33 | %              |  |   | 1,277,325   |  |  |                | 0.26 | % |             |   | 1,062,723   |  |  |  | 0.16 | %
|Deposits at notice                   |  |                                     | 8,598,461   |  |             |  | 0.32 | %              |  |   | 7,285,133   |  |  |                | 0.29 | % |             |   | 5,896,158   |  |  |  | 0.30 | %
|Time deposits                        |  |                                     | 5,277,263   |  |             |  | 1.40 | %              |  |   | 3,672,870   |  |  |                | 1.46 | % |             |   | 2,730,564   |  |  |  | 1.42 | %
|Negotiable certificates of deposit   |  |                                     | 6,973,391   |  |             |  | 0.66 | %              |  |   | 8,922,100   |  |  |                | 0.42 | % |             |   | 7,210,274   |  |  |  | 0.45 | %
|Others                               |  |                                     | 129,662     |  |             |  | 0.83 | %              |  |   | 106,491     |  |  |                | 1.09 | % |             |   | 114,868     |  |  |  | 1.04 | %
|                                     |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  
|Total foreign offices                |  |                                     | 23,713,107  |  |             |  |      |                |  |   | 21,956,839  |  |  |                |      |   |             |   | 17,528,330  |  |  |  |      |  
|                                     |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  
|Total                                |  | ¥                                   | 116,011,974 |  |             |  |      |                |  | ¥ | 109,102,241 |  |  |                |      |   |             | ¥ | 102,163,465 |  |  |  |      |  
|                                     |  |                                     |             |  |             |  |      |                |  |   |             |  |  |                |      |   |             |   |             |  |  |  |      |  

Deposits at notice represent interest-bearing demand deposits which require the depositor to give two or
more days notice in advance of withdrawal.

The total amount of deposits by foreign depositors included in domestic offices
for the fiscal years ended March 31, 2016, 2015 and 2014 were ¥1,915,610 million, ¥1,748,689 million and ¥1,318,749 million, respectively.



A-13



---

##### Table of Contents

At March 31, 2016, the balances and remaining maturities of time deposits and negotiable
certificates of deposit issued by domestic offices in amounts of ¥10 million (approximately $88,794 at the median exchange rate for buying and selling spot dollars for yen by telegraphic transfer as determined by the Bank at the end of the
current fiscal year) or more and total foreign deposits issued in amounts of $100,000 or more are shown in the following table.



|                                                      |  |               |            |  |                                   |   |           |       |  |   |            | 
|----------------------------------------------------- |  | ------------- | ---------- |  | --------------------------------- | - | --------- | ----- |  | - | ---------- | 
|                                                      |  | Time deposits |            |  | Negotiable certificates ofdeposit |   |           | Total | 
|                                                      |  |               |            |  | (In millions)                     |   |           |       | 
|Domestic offices:                                     |  |               |            |  |                                   |   |           |       |  |   |            | 
|Not later than three months                           |  | ¥             | 3,034,809  |  |                                   | ¥ | 5,375,113 |       |  | ¥ | 8,409,922  | 
|Later than three months and not later than six months |  |               | 1,432,205  |  |                                   |   | 684,780   |       |  |   | 2,116,985  | 
|Later than six months and not later than one year     |  |               | 4,693,648  |  |                                   |   | 276,565   |       |  |   | 4,970,213  | 
|Later than one year                                   |  |               | 2,543,158  |  |                                   |   | 115,412   |       |  |   | 2,658,570  | 
|                                                      |  |               |            |  |                                   |   |           |       |  |   |            | 
|Total                                                 |  | ¥             | 11,703,820 |  |                                   | ¥ | 6,451,870 |       |  | ¥ | 18,155,690 | 
|                                                      |  |               |            |  |                                   |   |           |       |  |   |            | 
|Foreign offices                                       |  | ¥             | 6,230,519  |  |                                   | ¥ | 7,797,956 |       |  | ¥ | 14,028,475 | 
|                                                      |  |               |            |  |                                   |   |           |       |  |   |            | 



|VI. | Return on Equity and Assets
|--- | ---------------------------

The following table shows the ratio of return on equity and assets for the fiscal years ended March 31, 2016, 2015 and 2014.



|                                                     |  |                                     |      |   |      |  |      |      |  |  |      |  
|---------------------------------------------------- |  | ----------------------------------- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                                     |  | For the fiscal year ended March 31, |     
|                                                     |  | 2016                                |      |   | 2015 |  |      | 2014 | 
|Return on average total assets                       |  |                                     | 0.5  | % |      |  | 0.4  | %    |  |  | 0.5  | %
|Return on average shareholders equity               |  |                                     | 8.1  | % |      |  | 7.3  | %    |  |  | 14.0 | %
|Dividends payout ratio(1):                           |  |                                     |      |   |      |  |      |      |  |  |      |  
|Basic                                                |  |                                     | 25.1 | % |      |  | 27.8 | %    |  |  | 22.3 | %
|Diluted                                              |  |                                     | 25.1 | % |      |  | 27.8 | %    |  |  | 22.3 | %
|Average shareholders equity to average total assets |  |                                     | 5.8  | % |      |  | 5.1  | %    |  |  | 3.8  | %



|(1) | Dividends declared per common share as a percentage of net profit per share.
|--- | ----------------------------------------------------------------------------



A-14



---

##### Table of Contents

|VII. | Short-Term Borrowings
|---- | ---------------------

The following table shows certain additional information with respect to our short-term borrowings for the fiscal years ended March 31,
2016, 2015 and 2014.



|                                                                                          |  |                                     |            |   |      |   |            |      |  |   |            |  
|----------------------------------------------------------------------------------------- |  | ----------------------------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | -
|                                                                                          |  | For the fiscal year ended March 31, |           
|                                                                                          |  | 2016                                |            |   | 2015 |   |            | 2014 | 
|                                                                                          |  | (In millions, except percentages)   |           
|Call money, and payables under repurchase agreements and securities lending transactions: |  |                                     |            |   |      |   |            |      |  |   |            |  
|Average balance outstanding during the period                                             |  | ¥                                   | 12,044,622 |   |      | ¥ | 9,957,560  |      |  | ¥ | 7,307,264  |  
|Maximum balance outstanding at any month-end during the period                            |  |                                     | 16,507,993 |   |      |   | 14,693,207 |      |  |   | 11,153,504 |  
|Balance at end of period                                                                  |  |                                     | 8,059,930  |   |      |   | 14,693,207 |      |  |   | 11,153,504 |  
|Weighted average interest rate during the period                                          |  |                                     | 0.17       | % |      |   | 0.14       | %    |  |   | 0.15       | %
|Weighted average interest rate on balance at end of period                                |  |                                     | 0.16       | % |      |   | 0.11       | %    |  |   | 0.10       | %
|Commercial paper:                                                                         |  |                                     |            |   |      |   |            |      |  |   |            |  
|Average balance outstanding during the period                                             |  |                                     | 4,555,927  |   |      |   | 4,223,418  |      |  |   | 3,659,627  |  
|Maximum balance outstanding at any month-end during the period                            |  |                                     | 5,301,064  |   |      |   | 4,839,788  |      |  |   | 3,843,285  |  
|Balance at end of period                                                                  |  |                                     | 4,169,515  |   |      |   | 4,813,902  |      |  |   | 3,669,912  |  
|Weighted average interest rate during the period                                          |  |                                     | 0.28       | % |      |   | 0.21       | %    |  |   | 0.21       | %
|Weighted average interest rate on balance at end of period                                |  |                                     | 0.38       | % |      |   | 0.24       | %    |  |   | 0.22       | %
|Short-term borrowings:                                                                    |  |                                     |            |   |      |   |            |      |  |   |            |  
|Average balance outstanding during the period                                             |  |                                     | 4,757,270  |   |      |   | 5,342,390  |      |  |   | 1,945,575  |  
|Maximum balance outstanding at any month-end during the period                            |  |                                     | 5,501,614  |   |      |   | 6,802,740  |      |  |   | 3,092,892  |  
|Balance at end of period                                                                  |  |                                     | 3,073,509  |   |      |   | 6,746,249  |      |  |   | 3,092,892  |  
|Weighted average interest rate during the period                                          |  |                                     | 0.17       | % |      |   | 0.18       | %    |  |   | 0.38       | %
|Weighted average interest rate on balance at end of period                                |  |                                     | 0.20       | % |      |   | 0.14       | %    |  |   | 0.22       | %



A-15



---

##### Table of Contents

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

The following consolidated financial statements and the reports thereon by its independent registered public accounting
firm are filed as part of this annual report:



|                                                                                                       |  |      |      | 
|------------------------------------------------------------------------------------------------------ |  | ---- | ---- | 
|                                                                                                       |  | Page |     
|Report of Independent Registered Public Accounting Firm                                                |  |      | F-3  | 
|Consolidated Financial Statements                                                                      |  |      |      | 
|Consolidated Statement of Financial Position at March 31, 2016 and 2015                                |  |      | F-5  | 
|Consolidated Income Statement for the Fiscal Years Ended March 31, 2016, 2015 and 2014                 |  |      | F-6  | 
|Consolidated Statement of Comprehensive Incomefor the Fiscal Years Ended March 31, 2016, 2015 and
2014 |  |      | F-7  | 
|Consolidated Statement of Changes in Equityfor the Fiscal Years Ended March 31, 2016, 2015 and
2014    |  |      | F-8  | 
|Consolidated Statement of Cash Flowsfor the Fiscal Years Ended March 31, 2016, 2015 and
2014           |  |      | F-9  | 
|Notes to Consolidated Financial Statements                                                             |  |      | F-10 | 
|1     General Information                                                                              |  |      | F-10 | 
|2     Summary of Significant Accounting Policies                                                       |  |      | F-10 | 
|3     Critical Accounting Estimates and Judgments                                                      |  |      | F-28 | 
|4     Segment Analysis                                                                                 |  |      | F-31 | 
|5     Cash and Deposits with Banks                                                                     |  |      | F-38 | 
|6     Trading Assets                                                                                   |  |      | F-39 | 
|7     Derivative Financial Instruments                                                                 |  |      | F-39 | 
|8     Financial Assets at Fair Value Through Profit or Loss                                            |  |      | F-42 | 
|9     Investment Securities                                                                            |  |      | F-43 | 
|10   Loans and Advances                                                                                |  |      | F-44 | 
|11   Investments in Associates and Joint Ventures                                                      |  |      | F-46 | 
|12   Property, Plant and Equipment                                                                     |  |      | F-47 | 
|13   Leases                                                                                            |  |      | F-48 | 
|14   Intangible Assets                                                                                 |  |      | F-50 | 
|15   Other Assets                                                                                      |  |      | F-54 | 
|16   Deposits                                                                                          |  |      | F-54 | 
|17   Trading Liabilities                                                                               |  |      | F-55 | 
|18   Borrowings                                                                                        |  |      | F-56 | 
|19   Debt Securities in Issue                                                                          |  |      | F-57 | 
|20   Provisions                                                                                        |  |      | F-58 | 
|21   Other Liabilities                                                                                 |  |      | F-59 | 
|22   Deferred Income Tax                                                                               |  |      | F-59 | 
|23   Retirement Benefits                                                                               |  |      | F-62 | 
|24   Shareholders Equity                                                                              |  |      | F-67 | 
|25   Non-Controlling Interests and Equity Attributable to Other Equity Instruments
Holders             |  |      | F-69 | 
|26   Net Interest Income                                                                               |  |      | F-71 | 
|27   Net Fee and Commission Income                                                                     |  |      | F-72 | 
|28   Net Trading Income                                                                                |  |      | F-72 | 
|29   Net Income from Financial Assets at Fair Value Through Profit or Loss                             |  |      | F-73 | 
|30   Net Investment Income                                                                             |  |      | F-73 | 
|31   Other Income                                                                                      |  |      | F-73 | 
|32   Impairment Charges on Financial Assets                                                            |  |      | F-74 | 
|33   General and Administrative Expenses                                                               |  |      | F-74 | 
|34   Other Expenses                                                                                    |  |      | F-74 | 
|35   Income Tax Expense                                                                                |  |      | F-75 | 



F-1



---

##### Table of Contents

|                                                                      |  |      |       | 
|--------------------------------------------------------------------- |  | ---- | ----- | 
|                                                                      |  | Page |      
|36  Earnings Per Share                                                |  |      | F-76  | 
|37  Transfers of Financial Assets                                     |  |      | F-76  | 
|38  Assets Pledged and Received as Collateral                         |  |      | F-78  | 
|39  Share-Based Payment                                               |  |      | F-79  | 
|40  Dividends Per Share                                               |  |      | F-80  | 
|41  Contingency and Capital Commitments                               |  |      | F-80  | 
|42  Analysis of Financial Assets and Liabilities by Measurement Basis |  |      | F-82  | 
|43  Fair Value of Financial Assets and Liabilities                    |  |      | F-84  | 
|44  Offsetting of Financial Assets and Liabilities                    |  |      | F-98  | 
|45  Financial Risk Management                                         |  |      | F-99  | 
|46  Related-Party Transactions                                        |  |      | F-125 | 
|47  Principal Subsidiaries                                            |  |      | F-127 | 
|48  Structured Entities                                               |  |      | F-128 | 
|49  Acquisitions                                                      |  |      | F-131 | 
|50  Current and Non-Current Distinction                               |  |      | F-133 | 
|51  Condensed Financial Information of Registrant (SMFG)              |  |      | F-134 | 



F-2



---

##### Table of Contents

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Sumitomo Mitsui Financial Group, Inc.:

We have audited the accompanying
consolidated statement of financial position of Sumitomo Mitsui Financial Group, Inc. and subsidiaries (the SMFG Group) as of March 31, 2016 and 2015, and the related consolidated income statement and consolidated statements of
comprehensive income, changes in equity and cash flows for each of the years in the three-year period ended March 31, 2016. These consolidated financial statements are the responsibility of the Companys management. Our responsibility is to
express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position
of the SMFG Group as of March 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended March 31, 2016, in conformity with International Financial Reporting Standards as issued
by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), Sumitomo Mitsui Financial Group, Inc.s internal control over financial reporting as of March 31, 2016, based on criteria established in Internal ControlIntegrated Framework (2013) issued
by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated June 27, 2016 expressed an unqualified opinion on the effectiveness of the Companys internal control over financial reporting.

/s/ KPMG AZSA LLC

Tokyo, Japan

June 27, 2016



F-3



---

##### Table of Contents

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Sumitomo Mitsui Financial Group, Inc.:

We have audited Sumitomo Mitsui Financial Group, Inc.s internal control over financial reporting as of March 31, 2016, based on criteria established in Internal ControlIntegrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Sumitomo Mitsui Financial Group, Inc.s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Managements Annual Report on Internal Control over Financial Reporting, included in Item 15 Controls and Procedures of the
accompanying Form 20-F. Our responsibility is to express an opinion on Sumitomo Mitsui Financial Group Inc.s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures
as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A
companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A companys internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Sumitomo Mitsui Financial Group, Inc. maintained, in all material respects, effective internal control over financial
reporting as of March 31, 2016, based on criteria established in Internal ControlIntegrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated
statement of financial position of Sumitomo Mitsui Financial Group, Inc. and subsidiaries as of March 31, 2016 and 2015, and the related consolidated income statement and consolidated statements of comprehensive income, changes in equity and cash
flows for each of the years in the three-year period ended March 31, 2016, and our report dated June 27, 2016 expressed an unqualified opinion on those consolidated financial statements.

/s/ KPMG AZSA LLC

Tokyo, Japan

June 27, 2016



F-4



---

##### Table of Contents

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statement of Financial Position



|                                                                             |  |      |  |               |             |   |      |   |             |  
|---------------------------------------------------------------------------- |  | ---- |  | ------------- | ----------- | - | ---- | - | ----------- | -
|                                                                             |  |      |  | At March 31,  |            
|                                                                             |  | Note |  | 2016          |             |   | 2015 |  
|                                                                             |  |      |  | (In millions) |            
|Assets:                                                                      |  |      |  |               |             |   |      |   |             |  
|Cash and deposits with banks                                                 |  | 5    |  | ¥             | 43,144,654  |   |      | ¥ | 40,112,783  |  
|Call loans and bills bought                                                  |  |      |  |               | 1,291,366   |   |      |   | 1,326,965   |  
|Reverse repurchase agreements and cash collateral on securities borrowed     |  |      |  |               | 8,236,516   |   |      |   | 7,218,498   |  
|Trading assets                                                               |  | 6    |  |               | 3,615,092   |   |      |   | 3,243,185   |  
|Derivative financial instruments                                             |  | 7    |  |               | 5,290,825   |   |      |   | 6,471,203   |  
|Financial assets at fair value through profit or loss                        |  | 8    |  |               | 1,611,877   |   |      |   | 1,785,684   |  
|Investment securities                                                        |  | 9    |  |               | 19,865,347  |   |      |   | 24,239,656  |  
|Loans and advances                                                           |  | 10   |  |               | 88,862,371  |   |      |   | 86,971,716  |  
|Investments in associates and joint ventures                                 |  | 11   |  |               | 702,264     |   |      |   | 619,814     |  
|Property, plant and equipment                                                |  | 12   |  |               | 2,590,951   |   |      |   | 2,496,497   |  
|Intangible assets                                                            |  | 14   |  |               | 1,048,093   |   |      |   | 975,995     |  
|Other assets                                                                 |  | 15   |  |               | 3,654,448   |   |      |   | 3,485,123   |  
|Current tax assets                                                           |  |      |  |               | 143,534     |   |      |   | 116,847     |  
|Deferred tax assets                                                          |  | 22   |  |               | 115,314     |   |      |   | 117,500     |  
|                                                                             |  |      |  |               |             |   |      |   |             |  
|Total assets                                                                 |  |      |  | ¥             | 180,172,652 |   |      | ¥ | 179,181,466 |  
|                                                                             |  |      |  |               |             |   |      |   |             |  
|Liabilities:                                                                 |  |      |  |               |             |   |      |   |             |  
|Deposits                                                                     |  | 16   |  | ¥             | 125,940,797 |   |      | ¥ | 115,833,980 |  
|Call money and bills sold                                                    |  |      |  |               | 1,220,456   |   |      |   | 5,873,124   |  
|Repurchase agreements and cash collateral on securities lent                 |  |      |  |               | 6,839,474   |   |      |   | 8,820,083   |  
|Trading liabilities                                                          |  | 17   |  |               | 2,197,673   |   |      |   | 2,193,400   |  
|Derivative financial instruments                                             |  | 7    |  |               | 5,086,083   |   |      |   | 6,739,787   |  
|Borrowings                                                                   |  | 18   |  |               | 9,914,129   |   |      |   | 11,217,052  |  
|Debt securities in issue                                                     |  | 19   |  |               | 10,829,612  |   |      |   | 11,051,431  |  
|Provisions                                                                   |  | 20   |  |               | 262,401     |   |      |   | 207,624     |  
|Other liabilities                                                            |  | 21   |  |               | 6,410,733   |   |      |   | 5,548,965   |  
|Current tax liabilities                                                      |  |      |  |               | 93,307      |   |      |   | 111,365     |  
|Deferred tax liabilities                                                     |  | 22   |  |               | 335,888     |   |      |   | 563,805     |  
|                                                                             |  |      |  |               |             |   |      |   |             |  
|Total liabilities                                                            |  |      |  |               | 169,130,553 |   |      |   | 168,160,616 |  
|                                                                             |  |      |  |               |             |   |      |   |             |  
|Equity:                                                                      |  |      |  |               |             |   |      |   |             |  
|Capital stock                                                                |  | 24   |  |               | 2,337,896   |   |      |   | 2,337,896   |  
|Capital surplus                                                              |  | 24   |  |               | 863,503     |   |      |   | 862,971     |  
|Retained earnings                                                            |  | 24   |  |               | 4,186,683   |   |      |   | 3,554,688   |  
|Other reserves                                                               |  | 24   |  |               | 1,991,955   |   |      |   | 2,759,084   |  
|Treasury stock                                                               |  | 24   |  |               | (175,381    | ) |      |   | (175,261    | )
|                                                                             |  |      |  |               |             |   |      |   |             |  
|Equity attributable to shareholders of Sumitomo Mitsui Financial Group, Inc. |  |      |  |               | 9,204,656   |   |      |   | 9,339,378   |  
|Non-controlling interests                                                    |  | 25   |  |               | 1,537,548   |   |      |   | 1,681,472   |  
|Equity attributable to other equity instruments holders                      |  | 25   |  |               | 299,895     |   |      |   |            |  
|                                                                             |  |      |  |               |             |   |      |   |             |  
|Total equity                                                                 |  |      |  |               | 11,042,099  |   |      |   | 11,020,850  |  
|                                                                             |  |      |  |               |             |   |      |   |             |  
|Total equity and liabilities                                                 |  |      |  | ¥             | 180,172,652 |   |      | ¥ | 179,181,466 |  
|                                                                             |  |      |  |               |             |   |      |   |             |  



The
accompanying notes are an integral part of the Consolidated Financial Statements.



F-5



---

##### Table of Contents

Consolidated Income Statement



|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|--------------------------------------------------------------------- |  | ---- |  | ------------------------------------ | --------- |  | ---- | - | --------- | ---- |  | - | --------- | -
|                                                                      |  |      |  | For the fiscal year ended March 31,  |          
|                                                                      |  | Note |  | 2016                                 |           |  | 2015 |   |           | 2014 | 
|                                                                      |  |      |  | (In millions, except per share data) |          
|Interest income                                                       |  |      |  | ¥                                    | 1,872,584 |  |      | ¥ | 1,782,621 |      |  | ¥ | 1,714,044 |  
|Interest expense                                                      |  |      |  |                                      | 431,101   |  |      |   | 371,107   |      |  |   | 320,511   |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net interest income                                                   |  | 26   |  |                                      | 1,441,483 |  |      |   | 1,411,514 |      |  |   | 1,393,533 |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Fee and commission income                                             |  |      |  |                                      | 1,031,680 |  |      |   | 1,002,766 |      |  |   | 1,003,169 |  
|Fee and commission expense                                            |  |      |  |                                      | 131,381   |  |      |   | 129,253   |      |  |   | 127,959   |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net fee and commission income                                         |  | 27   |  |                                      | 900,299   |  |      |   | 873,513   |      |  |   | 875,210   |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net trading income                                                    |  | 28   |  |                                      | 462,682   |  |      |   | 127,759   |      |  |   | 135,218   |  
|Net income from financial assets at fair value through profit or loss |  | 29   |  |                                      | 12,260    |  |      |   | 22,678    |      |  |   | 58,586    |  
|Net investment income                                                 |  | 30   |  |                                      | 375,229   |  |      |   | 371,064   |      |  |   | 332,265   |  
|Other income                                                          |  | 31   |  |                                      | 496,273   |  |      |   | 525,905   |      |  |   | 429,541   |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Total operating income                                                |  |      |  |                                      | 3,688,226 |  |      |   | 3,332,433 |      |  |   | 3,224,353 |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Impairment charges (reversals) on financial assets                    |  | 32   |  |                                      | 148,356   |  |      |   | 90,138    |      |  |   | (14,275   | )
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net operating income                                                  |  |      |  |                                      | 3,539,870 |  |      |   | 3,242,295 |      |  |   | 3,238,628 |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|General and administrative expenses                                   |  | 33   |  |                                      | 1,706,263 |  |      |   | 1,621,897 |      |  |   | 1,522,990 |  
|Other expenses                                                        |  | 34   |  |                                      | 538,963   |  |      |   | 505,614   |      |  |   | 428,780   |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Operating expenses                                                    |  |      |  |                                      | 2,245,226 |  |      |   | 2,127,511 |      |  |   | 1,951,770 |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Share of post-tax profit of associates and joint ventures             |  |      |  |                                      | 31,056    |  |      |   | 18,124    |      |  |   | 19,454    |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Profit before tax                                                     |  |      |  |                                      | 1,325,700 |  |      |   | 1,132,908 |      |  |   | 1,306,312 |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Income tax expense                                                    |  | 35   |  |                                      | 372,878   |  |      |   | 409,947   |      |  |   | 414,076   |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Net profit                                                            |  |      |  | ¥                                    | 952,822   |  |      | ¥ | 722,961   |      |  | ¥ | 892,236   |  
|                                                                      |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Profit attributable to:                                               |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Shareholders of Sumitomo Mitsui Financial Group, Inc.                 |  |      |  | ¥                                    | 843,920   |  |      | ¥ | 614,070   |      |  | ¥ | 766,388   |  
|Non-controlling interests                                             |  |      |  |                                      | 106,129   |  |      |   | 108,891   |      |  |   | 125,848   |  
|Other equity instruments holders                                      |  |      |  |                                      | 2,773     |  |      |   |          |      |  |   |          |  
|Earnings per share:                                                   |  |      |  |                                      |           |  |      |   |           |      |  |   |           |  
|Basic                                                                 |  | 36   |  | ¥                                    | 617.25    |  |      | ¥ | 449.13    |      |  | ¥ | 560.97    |  
|Diluted                                                               |  | 36   |  |                                      | 616.83    |  |      |   | 448.86    |      |  |   | 560.68    |  



The
accompanying notes are an integral part of the Consolidated Financial Statements.



F-6



---

##### Table of Contents

Consolidated Statement of Comprehensive Income



|                                                                                   |  |                                     |          |   |      |   |           |      |  |   |           |  
|---------------------------------------------------------------------------------- |  | ----------------------------------- | -------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                                                                                   |  | For the fiscal year ended March 31, |         
|                                                                                   |  | 2016                                |          |   | 2015 |   |           | 2014 | 
|                                                                                   |  | (In millions)                       |         
|Net profit                                                                         |  | ¥                                   | 952,822  |   |      | ¥ | 722,961   |      |  | ¥ | 892,236   |  
|                                                                                   |  |                                     |         
|Other comprehensive income:                                                        |  |                                     |          |   |      |   |           |      |  |   |           |  
|Items that will not be reclassified to profit or loss:                             |  |                                     |          |   |      |   |           |      |  |   |           |  
|Remeasurements of defined benefit plans:                                           |  |                                     |          |   |      |   |           |      |  |   |           |  
|Gains (losses) arising during the period, before tax                               |  |                                     | (154,273 | ) |      |   | 181,638   |      |  |   | 214,242   |  
|                                                                                   |  |                                     |         
|Share of other comprehensive income (loss) of associates and joint ventures        |  |                                     | 558      |   |      |   | 192       |      |  |   | (581      | )
|                                                                                   |  |                                     |         
|Income tax relating to items that will not be reclassified                         |  |                                     | 48,550   |   |      |   | (58,081   | )    |  |   | (76,596   | )
|                                                                                   |  |                                     |          |   |      |   |           |      |  |   |           |  
|Total items that will not be reclassified to profit or loss, net of tax            |  |                                     | (105,165 | ) |      |   | 123,749   |      |  |   | 137,065   |  
|                                                                                   |  |                                     |         
|Items that may be reclassified subsequently to profit or loss:                     |  |                                     |          |   |      |   |           |      |  |   |           |  
|Available-for-sale financial assets:                                               |  |                                     |          |   |      |   |           |      |  |   |           |  
|Gains (losses) arising during the period, before tax                               |  |                                     | (551,572 | ) |      |   | 1,392,139 |      |  |   | 589,766   |  
|Reclassification adjustments for (gains) losses included in net profit, before tax |  |                                     | (217,529 | ) |      |   | (232,281  | )    |  |   | (212,001  | )
|                                                                                   |  |                                     |         
|Exchange differences on translating foreign operations:                            |  |                                     |          |   |      |   |           |      |  |   |           |  
|Gains (losses) arising during the period, before tax                               |  |                                     | (219,904 | ) |      |   | 301,796   |      |  |   | 271,619   |  
|Reclassification adjustments for (gains) losses included in net profit, before tax |  |                                     | 8        |   |      |   | (2,164    | )    |  |   | (1,311    | )
|                                                                                   |  |                                     |         
|Share of other comprehensive income (loss) of associates and joint ventures        |  |                                     | (14,362  | ) |      |   | 5,562     |      |  |   | (4,710    | )
|                                                                                   |  |                                     |         
|Income tax relating to items that may be reclassified                              |  |                                     | 308,623  |   |      |   | (301,129  | )    |  |   | (151,443  | )
|                                                                                   |  |                                     |          |   |      |   |           |      |  |   |           |  
|Total items that may be reclassified subsequently to profit or loss, net of tax    |  |                                     | (694,736 | ) |      |   | 1,163,923 |      |  |   | 491,920   |  
|                                                                                   |  |                                     |          |   |      |   |           |      |  |   |           |  
|Other comprehensive income (loss), net of tax                                      |  |                                     | (799,901 | ) |      |   | 1,287,672 |      |  |   | 628,985   |  
|                                                                                   |  |                                     |          |   |      |   |           |      |  |   |           |  
|Total comprehensive income                                                         |  | ¥                                   | 152,921  |   |      | ¥ | 2,010,633 |      |  | ¥ | 1,521,221 |  
|                                                                                   |  |                                     |          |   |      |   |           |      |  |   |           |  
|Total comprehensive income attributable to:                                        |  |                                     |          |   |      |   |           |      |  |   |           |  
|Shareholders of Sumitomo Mitsui Financial Group, Inc.                              |  | ¥                                   | 76,791   |   |      | ¥ | 1,826,328 |      |  | ¥ | 1,342,044 |  
|Non-controlling interests                                                          |  |                                     | 73,357   |   |      |   | 184,305   |      |  |   | 179,177   |  
|Other equity instruments holders                                                   |  |                                     | 2,773    |   |      |   |          |      |  |   |          |  



The
accompanying notes are an integral part of the Consolidated Financial Statements.



F-7



---

##### Table of Contents

Consolidated Statement of Changes in Equity



|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|----------------------------------------------------------- |  | ------------- | --------- |  | -------------- | - | ------- | ---------------- |  | - | -------------------------------------- | - |  | --------------------------------- | -------- | - | ------------------------------------------------- | - | --------- | ------------- |  | - | --------------------------------------- | - |  | ------------------------ | -------- | - | -------------------------------------------------- | - | --------- | ------------ |  | - | --------- | - |  | - | ------- | - |  | - | ---------- | -
|                                                            |  | Capitalstock  |           |  | Capitalsurplus |   |         | Retainedearnings |  |   | Remeasure-ments ofdefinedbenefit plans |   |  | Available-for-salefinancialassets |          |   | Exchangedifferencesontranslatingforeignoperations |   |           | Treasurystock |  |   | Equityattributableto SMFGsshareholders |   |  | Non-controllinginterests |          |   | Equityattributabletoother equityinstrumentsholders |   |           | Total equity | 
|                                                            |  | (In millions) |          
|Balance atApril 1, 2013                                     |  | ¥             | 2,337,896 |  |                | ¥ | 862,305 |                  |  | ¥ | 2,515,956                              |   |  | ¥                                 | (138,013 | ) |                                                   | ¥ | 1,159,215 |               |  | ¥ | (50,032                                 | ) |  | ¥                        | (227,373 | ) |                                                    | ¥ | 6,459,954 |              |  | ¥ | 2,099,735 |   |  | ¥ |        |   |  | ¥ | 8,559,689  |  
|Comprehensive income:                                       |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Net profit                                                  |  |               |          |  |                |   |        |                  |  |   | 766,388                                |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 766,388   |              |  |   | 125,848   |   |  |   |        |   |  |   | 892,236    |  
|Other comprehensive income                                  |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   | 136,031  |   |                                                   |   | 238,235   |               |  |   | 201,390                                 |   |  |                          |         |   |                                                    |   | 575,656   |              |  |   | 53,329    |   |  |   |        |   |  |   | 628,985    |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Total comprehensive income                                  |  |               |          |  |                |   |        |                  |  |   | 766,388                                |   |  |                                   | 136,031  |   |                                                   |   | 238,235   |               |  |   | 201,390                                 |   |  |                          |         |   |                                                    |   | 1,342,044 |              |  |   | 179,177   |   |  |   |        |   |  |   | 1,521,221  |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Acquisition and disposal of subsidiaries and businesses-net |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   | (2        | ) |  |   |        |   |  |   | (2         | )
|Transaction with non-controlling interest shareholders      |  |               |          |  |                |   |        |                  |  |   | 200                                    |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 200       |              |  |   | (1,743    | ) |  |   |        |   |  |   | (1,543     | )
|Dividends to shareholders                                   |  |               |          |  |                |   |        |                  |  |   | (169,973                               | ) |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | (169,973  | )            |  |   | (95,215   | ) |  |   |        |   |  |   | (265,188   | )
|Redemption of preferred securities                          |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   | (451,458  | ) |  |   |        |   |  |   | (451,458   | )
|Purchase of treasury stock                                  |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          | (501     | ) |                                                    |   | (501      | )            |  |   |          |   |  |   |        |   |  |   | (501       | )
|Sale of treasury stock                                      |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          | 52,759   |   |                                                    |   | 52,759    |              |  |   |          |   |  |   |        |   |  |   | 52,759     |  
|Loss onsale of treasury stock                               |  |               |          |  |                |   | (281    | )                |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | (281      | )            |  |   |          |   |  |   |        |   |  |   | (281       | )
|Others                                                      |  |               |          |  |                |   | 494     |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 494       |              |  |   |          |   |  |   |        |   |  |   | 494        |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Balance atMarch 31, 2014                                    |  |               | 2,337,896 |  |                |   | 862,518 |                  |  |   | 3,112,571                              |   |  |                                   | (1,982   | ) |                                                   |   | 1,397,450 |               |  |   | 151,358                                 |   |  |                          | (175,115 | ) |                                                    |   | 7,684,696 |              |  |   | 1,730,494 |   |  |   |        |   |  |   | 9,415,190  |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Comprehensive income:                                       |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Net profit                                                  |  |               |          |  |                |   |        |                  |  |   | 614,070                                |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 614,070   |              |  |   | 108,891   |   |  |   |        |   |  |   | 722,961    |  
|Other comprehensive income                                  |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   | 122,298  |   |                                                   |   | 837,186   |               |  |   | 252,774                                 |   |  |                          |         |   |                                                    |   | 1,212,258 |              |  |   | 75,414    |   |  |   |        |   |  |   | 1,287,672  |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Total comprehensive income                                  |  |               |          |  |                |   |        |                  |  |   | 614,070                                |   |  |                                   | 122,298  |   |                                                   |   | 837,186   |               |  |   | 252,774                                 |   |  |                          |         |   |                                                    |   | 1,826,328 |              |  |   | 184,305   |   |  |   |        |   |  |   | 2,010,633  |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Acquisition and disposal of subsidiaries and businesses-net |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   | (31,678   | ) |  |   |        |   |  |   | (31,678    | )
|Transaction with non-controlling interest shareholders      |  |               |          |  |                |   |        |                  |  |   | (1,045                                 | ) |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | (1,045    | )            |  |   | 948       |   |  |   |        |   |  |   | (97        | )
|Dividends to shareholders                                   |  |               |          |  |                |   |        |                  |  |   | (170,908                               | ) |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | (170,908  | )            |  |   | (78,097   | ) |  |   |        |   |  |   | (249,005   | )
|Redemption of preferred securities                          |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   | (124,500  | ) |  |   |        |   |  |   | (124,500   | )
|Purchase of treasury stock                                  |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          | (161     | ) |                                                    |   | (161      | )            |  |   |          |   |  |   |        |   |  |   | (161       | )
|Sale of treasury stock                                      |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          | 15       |   |                                                    |   | 15        |              |  |   |          |   |  |   |        |   |  |   | 15         |  
|Gains on sale of treasury stock                             |  |               |          |  |                |   | 2       |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 2         |              |  |   |          |   |  |   |        |   |  |   | 2          |  
|Others                                                      |  |               |          |  |                |   | 451     |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 451       |              |  |   |          |   |  |   |        |   |  |   | 451        |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Balance at March 31, 2015                                   |  |               | 2,337,896 |  |                |   | 862,971 |                  |  |   | 3,554,688                              |   |  |                                   | 120,316  |   |                                                   |   | 2,234,636 |               |  |   | 404,132                                 |   |  |                          | (175,261 | ) |                                                    |   | 9,339,378 |              |  |   | 1,681,472 |   |  |   |        |   |  |   | 11,020,850 |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Comprehensive income:                                       |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Net profit                                                  |  |               |          |  |                |   |        |                  |  |   | 843,920                                |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 843,920   |              |  |   | 106,129   |   |  |   | 2,773   |   |  |   | 952,822    |  
|Other comprehensive income                                  |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   | (101,331 | ) |                                                   |   | (478,002  | )             |  |   | (187,796                                | ) |  |                          |         |   |                                                    |   | (767,129  | )            |  |   | (32,772   | ) |  |   |        |   |  |   | (799,901   | )
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Total comprehensive income                                  |  |               |          |  |                |   |        |                  |  |   | 843,920                                |   |  |                                   | (101,331 | ) |                                                   |   | (478,002  | )             |  |   | (187,796                                | ) |  |                          |         |   |                                                    |   | 76,791    |              |  |   | 73,357    |   |  |   | 2,773   |   |  |   | 152,921    |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Issuance of other equity instruments                        |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   |          |   |  |   | 299,895 |   |  |   | 299,895    |  
|Acquisition and disposal of subsidiaries and businesses-net |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   | 1,371     |   |  |   |        |   |  |   | 1,371      |  
|Transaction with non-controlling interest shareholders      |  |               |          |  |                |   |        |                  |  |   | (3                                     | ) |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | (3        | )            |  |   | 58        |   |  |   |        |   |  |   | 55         |  
|Dividends to shareholders                                   |  |               |          |  |                |   |        |                  |  |   | (211,922                               | ) |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | (211,922  | )            |  |   | (76,710   | ) |  |   |        |   |  |   | (288,632   | )
|Coupons on other equity instruments                         |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   |          |   |  |   | (2,773  | ) |  |   | (2,773     | )
|Redemption of preferred securities                          |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   |          |              |  |   | (142,000  | ) |  |   |        |   |  |   | (142,000   | )
|Purchase of treasury stock                                  |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          | (192     | ) |                                                    |   | (192      | )            |  |   |          |   |  |   |        |   |  |   | (192       | )
|Sale of treasury stock                                      |  |               |          |  |                |   |        |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          | 72       |   |                                                    |   | 72        |              |  |   |          |   |  |   |        |   |  |   | 72         |  
|Loss on sale of treasury stock                              |  |               |          |  |                |   | (18     | )                |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | (18       | )            |  |   |          |   |  |   |        |   |  |   | (18        | )
|Others                                                      |  |               |          |  |                |   | 550     |                  |  |   |                                       |   |  |                                   |         |   |                                                   |   |          |               |  |   |                                        |   |  |                          |         |   |                                                    |   | 550       |              |  |   |          |   |  |   |        |   |  |   | 550        |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  
|Balance at March 31, 2016                                   |  | ¥             | 2,337,896 |  |                | ¥ | 863,503 |                  |  | ¥ | 4,186,683                              |   |  | ¥                                 | 18,985   |   |                                                   | ¥ | 1,756,634 |               |  | ¥ | 216,336                                 |   |  | ¥                        | (175,381 | ) |                                                    | ¥ | 9,204,656 |              |  | ¥ | 1,537,548 |   |  | ¥ | 299,895 |   |  | ¥ | 11,042,099 |  
|                                                            |  |               |           |  |                |   |         |                  |  |   |                                        |   |  |                                   |          |   |                                                   |   |           |               |  |   |                                         |   |  |                          |          |   |                                                    |   |           |              |  |   |           |   |  |   |         |   |  |   |            |  



The
accompanying notes are an integral part of the Consolidated Financial Statements.



F-8



---

##### Table of Contents

Consolidated Statement of Cash Flows



|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|------------------------------------------------------------------------------------------------------------------------- | ------------- | ----------------------------------- | ----------- | ---- |  | - | ----------- | - |  | - | ----------- | -
|                                                                                                                          |               | For the fiscal year ended March 31, |            
|                                                                                                                          | 2016          |                                     |             | 2015 |  |   | 2014        |  
|                                                                                                                          | (In millions) |                                    
|Operating Activities:                                                                                                     |               |                                     |             |      |  |   |             |   |  |   |             |  
|Profit before tax                                                                                                         |               | ¥                                   | 1,325,700   |      |  | ¥ | 1,132,908   |   |  | ¥ | 1,306,312   |  
|Adjustments for:                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Gains on financial assets at fair value through profit or loss and investment securities                                  |               |                                     | (235,415    | )    |  |   | (247,825    | ) |  |   | (270,587    | )
|Foreign exchange (gains) losses                                                                                           |               |                                     | 556,073     |      |  |   | (726,632    | ) |  |   | (761,173    | )
|Provision (credit) for loan losses                                                                                        |               |                                     | 118,750     |      |  |   | 79,552      |   |  |   | (25,806     | )
|Depreciation and amortization                                                                                             |               |                                     | 255,971     |      |  |   | 240,760     |   |  |   | 219,090     |  
|Share of post-tax profit of associates and joint ventures                                                                 |               |                                     | (31,056     | )    |  |   | (18,124     | ) |  |   | (19,454     | )
|Net changes in assets and liabilities:                                                                                    |               |                                     |             |      |  |   |             |   |  |   |             |  
|Net (increase) decrease of term deposits with original maturities over three months                                       |               |                                     | (11,071     | )    |  |   | 6,550       |   |  |   | 112,857     |  
|Net (increase) decrease of call loans and bills bought                                                                    |               |                                     | (18,233     | )    |  |   | 41,149      |   |  |   | 227,311     |  
|Net increase of reverse repurchase agreements and cash collateral on securities borrowed                                  |               |                                     | (1,040,858  | )    |  |   | (2,817,147  | ) |  |   | (361,364    | )
|Net increase of loans and advances                                                                                        |               |                                     | (2,258,824  | )    |  |   | (5,340,732  | ) |  |   | (4,769,916  | )
|Net change of trading assets and liabilities and derivative financial instruments                                         |               |                                     | (837,291    | )    |  |   | 744,344     |   |  |   | (110,124    | )
|Net increase of deposits                                                                                                  |               |                                     | 8,230,157   |      |  |   | 7,334,698   |   |  |   | 6,867,342   |  
|Net increase (decrease) of call money and bills sold                                                                      |               |                                     | (4,615,144  | )    |  |   | 1,657,077   |   |  |   | 1,084,038   |  
|Net increase (decrease) of repurchase agreements and cash collateral on securities lent                                   |               |                                     | (1,974,347  | )    |  |   | 1,704,138   |   |  |   | 516,851     |  
|Net increase (decrease) of other unsubordinated borrowings and debt securities in issue                                   |               |                                     | (1,499,201  | )    |  |   | 4,757,098   |   |  |   | 2,927,607   |  
|Income taxes paidnet                                                                                                     |               |                                     | (297,767    | )    |  |   | (363,548    | ) |  |   | (398,612    | )
|Other operating activitiesnet                                                                                            |               |                                     | 420,231     |      |  |   | (382,082    | ) |  |   | 439,940     |  
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Net cash and cash equivalents provided by (used in) operating activities                                                  |               |                                     | (1,912,325  | )    |  |   | 7,802,184   |   |  |   | 6,984,312   |  
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Investing Activities:                                                                                                     |               |                                     |             |      |  |   |             |   |  |   |             |  
|Purchases of financial assets at fair value through profit or loss and available-for-sale financial assets                |               |                                     | (25,968,442 | )    |  |   | (34,878,497 | ) |  |   | (18,538,588 | )
|Proceeds from sale of financial assets at fair value through profit or loss and available-for sale financial
assets       |               |                                     | 22,597,455  |      |  |   | 27,710,948  |   |  |   | 26,780,780  |  
|Proceeds from maturities of financial assets at fair value through profit or loss and available-for-sale financial
assets |               |                                     | 6,072,497   |      |  |   | 5,429,814   |   |  |   | 5,870,597   |  
|Purchases of held-to-maturity investments                                                                                 |               |                                     | (266,243    | )    |  |   |            |   |  |   | (8,185      | )
|Proceeds from maturities of held-to-maturity investments                                                                  |               |                                     | 1,394,921   |      |  |   | 1,102,109   |   |  |   | 1,314,846   |  
|Acquisitions of subsidiaries and businesses, net of cash and cash equivalents acquired                                    |               |                                     | 2,249,594   |      |  |   | (58         | ) |  |   | 37,600      |  
|Investments in associates and joint ventures                                                                              |               |                                     | (62,334     | )    |  |   | (101,181    | ) |  |   | (149,182    | )
|Proceeds from sale of investments in associates and joint ventures                                                        |               |                                     | 762         |      |  |   | 5,470       |   |  |   |            |  
|Purchases of property, plant and equipment, and investment properties                                                     |               |                                     | (529,151    | )    |  |   | (572,984    | ) |  |   | (462,966    | )
|Purchases of intangible assets                                                                                            |               |                                     | (158,888    | )    |  |   | (144,404    | ) |  |   | (127,567    | )
|Proceeds from sale of property, plant and equipment, investment properties and intangible assets                          |               |                                     | 148,650     |      |  |   | 187,463     |   |  |   | 158,069     |  
|Other investing activitiesnet                                                                                            |               |                                     | 6,697       |      |  |   | (66,438     | ) |  |   | 674         |  
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Net cash and cash equivalents provided by (used in) investing activities                                                  |               |                                     | 5,485,518   |      |  |   | (1,327,758  | ) |  |   | 14,876,078  |  
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Financing Activities:                                                                                                     |               |                                     |             |      |  |   |             |   |  |   |             |  
|Proceeds from issuance of subordinated borrowings                                                                         |               |                                     | 18,000      |      |  |   | 40,011      |   |  |   |            |  
|Redemption of subordinated borrowings                                                                                     |               |                                     | (40,262     | )    |  |   | (5,000      | ) |  |   | (32,000     | )
|Proceeds from issuance of subordinated bonds                                                                              |               |                                     | 276,949     |      |  |   | 314,927     |   |  |   | 2,111       |  
|Redemption of subordinated bonds                                                                                          |               |                                     | (186,785    | )    |  |   | (288,274    | ) |  |   | (349,884    | )
|Redemption of preferred securities                                                                                        |               |                                     | (142,000    | )    |  |   | (124,500    | ) |  |   | (451,458    | )
|Proceeds from issuance of other equity instruments                                                                        |               |                                     | 299,895     |      |  |   |            |   |  |   |            |  
|Dividends paid to shareholders of Sumitomo Mitsui Financial Group, Inc.                                                   |               |                                     | (211,952    | )    |  |   | (170,918    | ) |  |   | (169,984    | )
|Dividends paid to non-controlling interest shareholders                                                                   |               |                                     | (76,744     | )    |  |   | (77,970     | ) |  |   | (95,462     | )
|Coupons paid to other equity instruments holders                                                                          |               |                                     | (2,773      | )    |  |   |            |   |  |   |            |  
|Purchase of treasury stock and proceeds from sale of treasury stocknet                                                   |               |                                     | (137        | )    |  |   | (143        | ) |  |   | 60,166      |  
|Transactions with non-controlling interest shareholdersnet                                                               |               |                                     | 156         |      |  |   | (479        | ) |  |   | (1,566      | )
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Net cash and cash equivalents used in financing activities                                                                |               |                                     | (65,653     | )    |  |   | (312,346    | ) |  |   | (1,038,077  | )
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Effect of exchange rate changes on cash and cash equivalents                                                              |               |                                     | (489,331    | )    |  |   | 748,432     |   |  |   | 654,346     |  
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Net increase of cash and cash equivalents                                                                                 |               |                                     | 3,018,209   |      |  |   | 6,910,512   |   |  |   | 21,476,659  |  
|Cash and cash equivalents at beginning of period                                                                          |               |                                     | 39,108,757  |      |  |   | 32,198,245  |   |  |   | 10,721,586  |  
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Cash and cash equivalents at end of period                                                                                |               | ¥                                   | 42,126,966  |      |  | ¥ | 39,108,757  |   |  | ¥ | 32,198,245  |  
|                                                                                                                          |               |                                     |             |      |  |   |             |   |  |   |             |  
|Net cash and cash equivalents provided by (used in) operating activities includes:                                        |               |                                     |             |      |  |   |             |   |  |   |             |  
|Interest and dividends received                                                                                           |               | ¥                                   | 1,996,686   |      |  | ¥ | 1,913,148   |   |  | ¥ | 1,854,970   |  
|Interest paid                                                                                                             |               |                                     | 421,765     |      |  |   | 355,253     |   |  |   | 319,504     |  



The
accompanying notes are an integral part of the Consolidated Financial Statements.



F-9



---

##### Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



|1 | GENERAL INFORMATION
|- | -------------------

Sumitomo Mitsui Financial Group, Inc. (SMFG) was established on December 2, 2002, as a holding company for Sumitomo Mitsui
Banking Corporation (SMBC) and its subsidiaries through a statutory share transfer (kabushiki-iten) of all of the outstanding equity securities of SMBC in exchange for SMFGs newly issued securities. SMFG is a joint stock
corporation with limited liability (Kabushiki Kaisha) incorporated under the Companies Act of Japan (Companies Act). Upon the formation of SMFG and the completion of the statutory share transfer, SMBC became a direct, wholly owned
subsidiary of SMFG. SMFG has a primary listing on the Tokyo Stock Exchange (First Section), with further listing on the Nagoya Stock Exchange (First Section). SMFGs American Depositary Shares are listed on the New York Stock Exchange.

SMFG and its subsidiaries (the SMFG Group) offer a diverse range of financial services, including commercial
banking, leasing, securities, consumer finance and other services.

The accompanying consolidated financial statements have
been authorized for issue by the Management Committee on June 27, 2016.



|2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|- | ------------------------------------------

The principal accounting policies applied in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the fiscal years presented,
unless otherwise stated.

Basis of Preparation

Compliance with International Financial Reporting Standards

The
consolidated financial statements of the SMFG Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Basis of measurement

The consolidated financial statements have been prepared under the historical cost basis except for the following:



| |  |  | trading assets and liabilities are measured at fair value;
| | - |  | ----------------------------------------------------------



| |  |  | derivative financial instruments are measured at fair value;
| | - |  | ------------------------------------------------------------



| |  |  | financial assets at fair value through profit or loss are measured at fair value;
| | - |  | ---------------------------------------------------------------------------------



| |  |  | available-for-sale financial assets are measured at fair value; and
| | - |  | -------------------------------------------------------------------



| |  |  | liabilities and the assets recognized in consolidated statement of financial position in respect of defined benefit plans are the present value of the
defined benefit obligation less the fair value of plan assets.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Functional and presentation currency

The consolidated financial statements are presented in Japanese yen, which is also SMFGs functional currency.
All financial information presented in Japanese yen has been rounded to the nearest million, except as otherwise indicated.



F-10



---

##### Table of Contents

Critical accounting estimates and judgments

The preparation of the consolidated financial statements in accordance with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise judgment in the process of applying the accounting policies. Actual results may differ from these estimates. The notes to the consolidated financial statements set out areas involving a higher
degree of judgment or complexity, or areas where assumptions are significant to the consolidated financial statements, such as allowance for loan losses (Notes 10, 32), fair value of financial instruments (Note 43), impairment of available-for-sale
financial assets (Notes 9, 32), impairment of goodwill (Note 14), provision for interest repayment (Note 20), retirement benefits (Note 23) and deferred tax assets (Note 22).

Refer to Note 3 Critical Accounting Estimates and Judgments for further information.

New and Amended Accounting Standards Adopted by the SMFG Group

During the fiscal year ended March 31, 2016, a number of amendments to standards have become effective; however, they have not resulted in any material changes to the SMFG Groups accounting
policies.

Consolidation

Subsidiaries

Subsidiaries are all entities controlled by the SMFG
Group. The SMFG Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The SMFG Group considers all facts
and circumstances whether it controls an entity.

Where the relevant activities are directed through voting or similar rights,
the SMFG Group considers that it controls an entity if it has the existing rights that give it the current ability to direct the operating and financing policies of the entity, in general by having a shareholding of more than 50% of the voting
rights. The existence and effect of potential voting rights that are deemed to be substantive are taken into account when assessing whether the SMFG Group controls another entity.

Where the voting rights are not the dominant factor in deciding who controls the entity, the assessment of control is more complex and
requires greater use of judgment. The SMFG Group assesses whether it controls an entity considering all facts and circumstances, such as the purpose and design of the entity, the relevant activities and how to make decisions about those activities.

The SMFG Group also determines whether it is acting as an agent or a principal in assessing whether it has control of another
entity. An agent is a party primarily engaged to act on behalf and for the benefit of another party or parties and therefore does not control the entity. To make such judgments, the SMFG Group considers the overall relationship, especially all of
the following factors: the scope of its decision-making authority over the entity, the rights held by other parties, the remuneration to which it is entitled in accordance with the remuneration agreement, and its exposure to variability of returns
from other interests that it holds in the entity.

The SMFG Group reassesses whether it controls an entity if facts and
circumstances indicate that there are changes to one or more of the elements of control.

Subsidiaries are fully consolidated
from the date on which the SMFG Group obtains control. They are deconsolidated from the date on which the SMFG Group loses control.

The acquisition method is used to account for the business combinations including the acquisition of subsidiaries by the SMFG Group. The consideration transferred in a business combination is measured at
fair



F-11



---

##### Table of Contents

value, which is calculated as the sum of the acquisition-date fair values of the assets transferred, the liabilities incurred and the equity interests issued. Identifiable assets acquired and
liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The SMFG Groups previously held equity interest in the acquiree is remeasured at fair value at the acquisition date and any gain
or loss is recognized in profit or loss. For each business combination, the SMFG Group measures any non-controlling interest in the acquiree either at fair value or at the non-controlling interests proportionate share of the acquirees
identifiable net assets. The excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and the acquisition-date fair value of the SMFG Groups previously held equity interest in the acquiree over the
net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed is recorded as goodwill in the consolidated statement of financial position. If the aggregate of the consideration transferred, the amount of any
non-controlling interest and the acquisition-date fair value of the SMFG Groups previously held equity interest in the acquiree is less than the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities
assumed, the difference is recognized immediately in the consolidated income statement.

Inter-company transactions, balances
and unrealized gains on transactions between the SMFG Group companies are eliminated on consolidation. Unrealized losses are also eliminated unless the transaction provides evidence of impairment of the asset transferred. The accounting policies of
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the SMFG Group.

Non-controlling interests

Changes in the SMFG Groups ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

Interests in the equity of subsidiaries not attributable to the SMFG Group are reported in the consolidated statement of financial
position as a separate component of equity as non-controlling interests. Profits or losses attributable to non-controlling interests are separately reported in the consolidated income statement.

Associates and joint ventures

An associate is an entity over which the SMFG Group has significant influence, but does not control the financial and operating policy decisions of the entity. Significant influence is generally presumed
to exist when the SMFG Group holds 20% or more, but less than 50%, of the voting rights.

Entities that are jointly controlled
by more than one party, including the SMFG Group, may be determined to be a joint venture.

The SMFG Group accounts for
investments in associates and joint ventures using the equity method from the date on which they become associates or joint ventures. The SMFG Group discontinues the use of the equity method from the date on which the SMFG Group ceases to have
significant influence or joint control over the investees.

Under the equity method, the SMFG Groups investments in
associates and joint ventures are initially recognized at cost. The carrying amount of the investments are subsequently increased or decreased to recognize the SMFG Groups share of the post-acquisition profit or loss of the associate or joint
venture and other movements included directly in the equity of the associate or joint venture. The SMFG Groups share of the results of associates and joint ventures is based on the financial statements of its associates, adjusted to conform
with the accounting policies of the SMFG Group. Profits on transactions between the SMFG Group and its associates and joint ventures are eliminated to the extent of the SMFG Groups interest in the associates or joint ventures. Losses are also
eliminated to the extent of the SMFG Groups interest in the associates or joint ventures unless the transaction provides evidence of impairment in the asset transferred.



F-12



---

##### Table of Contents

The carrying amounts of the investments in associates and joint ventures include goodwill
(net of any accumulated impairment loss) arising on the acquisition of the interests in the entities. Because goodwill arising on the acquisition of the interest in an associate or joint venture is not separately recognized, it is not tested for
impairment separately. Instead, the entire carrying amount of the investment in an associate or joint venture is tested for impairment as a single asset by comparing its recoverable amount, which is the higher of value in use and fair value less
costs to sell, with its carrying amount, whenever there is any objective evidence that the investment is impaired. An impairment loss recognized in prior periods for the investment is reversed only if there has been a change in the estimates used to
determine the recoverable amount of the investment since the last impairment loss was recognized. If this is the case, the carrying amount of the investment is increased to its recoverable amount. That increase is a reversal of an impairment loss.

When the SMFG Groups share of losses in an associate or joint venture exceeds the SMFG Groups carrying amount of
the investment, the SMFG Group does not recognize further losses, unless it has a binding obligation or has made payments on behalf of the entity.

Segment Reporting

The SMFG Group determines its operating segments based
on the management approach, which requires operating segments to be identified on the basis of internal reports about components of the entity that are regularly reviewed by management, in order to allocate resources to a segment and to assess its
performance.

Foreign Currency Translation

Items included in the financial statements of each of the SMFG Group companies are measured using the currency of the primary economic environment in which the company operates (the functional
currency). The consolidated financial statements are presented in Japanese yen, which is also SMFGs functional currency.

Transactions and balances

Foreign currency transactions that are
denominated or settled in a foreign currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Monetary items denominated in foreign currencies are translated using the exchange rate at
the end of the reporting period. Foreign exchange gains and losses resulting from the retranslation and settlement of monetary items are recognized in the consolidated income statement. Non-monetary items that are measured at fair value in a foreign
currency are translated into the functional currency using the exchange rate at the date the fair value is determined. Translation differences on non-monetary items, such as equity instruments classified as available-for-sale financial assets, are
not included in the consolidated income statement but are recognized directly in equity. Non-monetary items that are measured at historical cost in a foreign currency are translated into the functional currency using the exchange rate at the date of
the initial transaction.

Foreign operations

The assets and liabilities of foreign operations are translated into the presentation currency of the SMFG Group using the exchange rate
at the end of the reporting period, and their income statements are translated using the exchange rates at the dates of the transactions or average exchange rates where these approximate to actual rates.

The exchange differences arising on the translation of a foreign operation are included in other comprehensive income within equity and
subsequently included in profit or loss on full or partial disposal of the operation.



F-13



---

##### Table of Contents

Financial Assets

At initial recognition, the financial assets of the SMFG Group are classified into one of the following categories: trading assets, derivative financial instruments, financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets.

Regular way
purchases and sales of trading assets, derivative financial instruments, financial assets at fair value through profit or loss, held-to-maturity investments and available-for-sale financial assets are recognized on the trade datethe date on
which the SMFG Group commits to purchase or sell the assets.

Financial assets are derecognized when the rights to receive
cash flows from the financial assets have expired or where the SMFG Group has transferred substantially all the risks and rewards of ownership at a consolidated level. The SMFG Group consolidates all subsidiaries in accordance with IFRS 10
Consolidated Financial Statements before determining derecognition of financial assets under IAS 39 Financial Instruments: Recognition and Measurement.

Trading assets

Financial assets are classified as held for trading
and included in Trading assets in the consolidated statement of financial position, if they are acquired or incurred principally for the purpose of selling or repurchasing in the near term or if they are part of a portfolio of identified
financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. Trading assets are initially recognized at fair value with transaction costs being recognized in the consolidated
income statement, and subsequently measured at fair value. Gains and losses arising from changes in the fair values of trading assets are included in Net trading income in the consolidated income statement.

Derivative financial instruments

Derivatives are also classified as held for trading and included in Derivative financial instruments in the consolidated statement of financial position. The SMFG Group does not apply hedge
accounting under IFRS. All derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Derivatives are initially recognized at fair value with transaction costs being recognized in the
consolidated income statement, and subsequently measured at fair value. Gains and losses arising from changes in the fair values of derivatives are included in Net trading income in the consolidated income statement.

The derivative component of a hybrid instrument containing both a derivative and non-derivative component (host contract) is
referred to as an embedded derivative. Certain embedded derivatives are accounted for as separate derivatives, when their economic characteristics and risks are not closely related to those of the host contract and the hybrid instrument is not
carried at fair value through profit or loss. These embedded derivatives are measured at fair value and are presented in the consolidated statement of financial position together with the host contract.

Financial assets at fair value through profit or loss

Financial assets, other than those held for trading, are classified as financial assets at fair value through profit or loss and are
included in Financial assets at fair value through profit or loss in the consolidated statement of financial position, if they meet one of the following criteria, and are so designated by management:



| |  |  | the designation eliminates or significantly reduces a measurement or recognition inconsistency;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | a group of financial assets is managed and its performance is evaluated on a fair value basis in accordance with a documented risk management or
investment strategy; or
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-14



---

##### Table of Contents

| |  |  | the instrument contains one or more embedded derivatives unless (a) the embedded derivative does not significantly modify the cash flows that otherwise
would be required by the contract or (b) it is clear with little or no analysis that separation is prohibited.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, the SMFG Group classifies the entire hybrid instrument at fair value through profit or loss when the SMFG Group is required to separate an embedded derivative from its host contract, but is
unable to measure the embedded derivative separately either at acquisition or at the end of a subsequent reporting period. Financial assets at fair value through profit or loss are initially recognized at fair value with transaction costs being
recognized in the consolidated income statement, and subsequently measured at fair value. Gains and losses arising from changes in the fair value of such financial assets are included in Net income from financial assets at fair value through
profit or loss in the consolidated income statement.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market,
other than:



| |  |  | those that the SMFG Group intends to sell immediately or in the near term, which are classified as held for trading, and those that the SMFG Group upon
initial recognition designates as at fair value through profit or loss;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | those that the SMFG Group upon initial recognition classifies as available-for-sale; or
| | - |  | ---------------------------------------------------------------------------------------



| |  |  | those for which the SMFG Group may not recover substantially all of its initial investment, other than because of credit deterioration.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------

The financial assets classified as loans and receivables are mainly included in Loans and
advances in the consolidated statement of financial position. Loans and receivables are initially recognized at fair value plus directly attributable transaction costs, and are subsequently measured at amortized cost using the effective
interest method.

When the SMFG Group is the lessor in a lease agreement that transfers substantially all of the risks and
rewards incidental to ownership of the asset to the lessee, the arrangement is classified as a finance lease and a receivable equal to the net investment in the lease is recognized and presented within Loans and advances in the
consolidated statement of financial position.

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets quoted in an active market with fixed or determinable payments and fixed
maturities that the SMFG Group has the positive intention and ability to hold to maturity. If the SMFG Group were to sell other than an insignificant amount of held-to-maturity investments, the remaining investments in this category would be
reclassified as available-for-sale financial assets. Held-to-maturity investments are initially recognized at fair value plus directly attributable transaction costs, and are subsequently measured at amortized cost using the effective interest
method.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are classified as available-for-sale at initial recognition
or are not classified into any of the other categories described above. Available-for-sale financial assets are initially recognized at fair value plus directly attributable transaction costs, and are subsequently measured at fair value.

Gains and losses arising from changes in the fair value of available-for-sale financial assets are recognized in other comprehensive
income, until they are derecognized or impaired. At that time, the cumulative gain or loss



F-15



---

##### Table of Contents

previously recognized in other comprehensive income is recognized in the consolidated income statement. However, interest income calculated using the effective interest method and foreign
currency gains and losses on monetary assets classified as available-for-sale are recognized in the consolidated income statement. Dividends on available-for-sale equity instruments are recognized in the consolidated income statement when the
entitys right to receive payment is established.

Financial Liabilities

Financial liabilities, except for held for trading and derivatives, are initially recognized at fair value net of transaction costs
incurred, including premiums, discounts and issuance costs, and subsequently measured at amortized cost based on the effective interest method. Financial liabilities carried at amortized cost are mainly Deposits, Borrowings,
and Debt securities in issue included in the consolidated statement of financial position.

Financial liabilities
held for trading and derivatives are initially measured at fair value with transaction costs being recognized in the consolidated income statement, and subsequently measured at fair value. Financial liabilities held for trading and derivatives are
mainly included in Trading liabilities and Derivative financial instruments, respectively, in the consolidated statement of financial position.

Financial liabilities are derecognized when they have been redeemed or otherwise extinguished.

Hedge Accounting

The
SMFG Group does not apply hedge accounting under IAS 39.

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the consolidated statement of financial position, only if
the SMFG Group currently has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis or to realize the asset and settle the liability simultaneously. In all other situations, they are presented on a gross
basis.

Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair
value, the SMFG Group gives the highest priority to a quoted price in an active market for identical assets or liabilities. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to
provide pricing information on an ongoing basis. If there is no active market for the asset or liability, the SMFG Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure the
fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. In cases where the SMFG Group manages a group of financial assets and financial liabilities on the basis of its net credit exposure, the fair
value of the group of financial assets and financial liabilities is measured on the basis of the price that would be received to sell a net long position (i.e., an asset) or paid to transfer a net short position (i.e., a liability) for the credit
risk exposure provided that certain criteria set forth in IFRS 13 Fair Value Measurement are met. Details of fair value measurement are described in Note 43 Fair Value of Financial Assets and Liabilities.

Recognition of Deferred Day One Profit and Loss

The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price (i.e., the fair value of the consideration given or received). However, if the fair
value at initial recognition is



F-16



---

##### Table of Contents

not evidenced by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the difference between the
fair value at initial recognition and the transaction price, commonly referred to as day one profit and loss, is not recognized as a gain or loss but adjusted to be deferred. The SMFG Group did not have any significant deferred day one
profit and loss for the fiscal years ended March 31, 2016 and 2015.

Repurchase and Reverse Repurchase Agreements, and Securities Borrowing
and Lending Agreements

In the ordinary course of business, the SMFG Group lends or sells securities under agreements to
repurchase them at a predetermined price on a future date (repos). Since substantially all the risks and rewards are retained by the SMFG Group, the securities remain on the consolidated statement of financial position and a liability is
recorded in respect of the consideration received. On the other hand, the SMFG Group borrows or purchases securities under agreements to resell them at a predetermined price on a future date (reverse repos). Since the SMFG Group does not
retain the risks and rewards of ownership, these transactions are treated as collateralized loans and the securities are not included in the consolidated statement of financial position.

The difference between the sale and purchase price is accrued over the life of the transactions. Securities lent to counterparties remain
on the consolidated statement of financial position. Securities borrowed are not recognized in the consolidated statement of financial position, unless these are sold to third parties, at which point the obligation to repurchase the securities is
recorded as a trading liability at fair value and any subsequent gain or loss is included in Net trading income in the consolidated income statement.

For the fiscal years ended March 31, 2016 and 2015, there were no transactions pursuant to repurchase agreements, securities lending transactions or other transactions involving the transfer of financial
assets with an obligation to repurchase such transferred assets that were treated as sales and hence derecognized for accounting purposes.

Impairment of Financial Assets

Loans and advances and held-to-maturity investments

At the end of
each reporting period, the SMFG Group assesses whether there is any objective evidence that a financial asset or a group of financial assets is impaired.

A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the
initial recognition of the asset (a loss event) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

The criteria that the SMFG Group uses to determine that there is objective evidence of an impairment loss include:



| |  |  | significant financial difficulty of an issuer or an obligor;
| | - |  | ------------------------------------------------------------



| |  |  | a default or delinquency in interest or principal payments;
| | - |  | -----------------------------------------------------------



| |  |  | restructuring of a financial asset by the SMFG Group due to the borrowers financial difficulties on terms that the SMFG Group would not otherwise
consider;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | indications that a borrower or issuer will enter bankruptcy;
| | - |  | ------------------------------------------------------------



| |  |  | disappearance of an active market for a security because of the borrowers financial difficulties; and
| | - |  | ------------------------------------------------------------------------------------------------------



| |  |  | other observable data relating to a group of assets, such as adverse changes in the payment status of borrowers or issuers in the group, or national or
local economic conditions that correlate with defaults in the group.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-17



---

##### Table of Contents

The SMFG Group first assesses whether objective evidence of impairment exists individually
for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. If the SMFG Group determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment
and for which an impairment loss is or continues to be recognized are not included in the collective assessment of impairment.

The allowance for individually significant impaired financial assets is measured by the discounted cash flow (DCF) method,
which is used to calculate the difference between the assets carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial assets original
effective interest rate. If financial assets have a variable interest rate, the discount rate for measuring any impairment loss is the effective interest rate determined under the contract, for the current period. The estimated future cash flows are
individually calculated taking into account factors including historical loss information, the appropriateness of the borrowers business plan or operational improvement plan, the status of progress of its plan, the overall support from
financial institutions, and the realizable value of any collateral held.

The collective allowance for financial assets is
classified into two types: (1) the allowance for impaired financial assets that are not individually significant, and (2) the allowance for non-impaired financial assets, which reflects incurred but not yet identified (IBNI) losses for
the period between the impairment occurring and the loss being identified. The collective allowance is estimated by applying historical loss experience to groups of homogenous loans. The historical loss experience data includes the number of
borrowers for whom objective evidence of impairment has been identified for the most recent rolling one-year period, and the amount ultimately recovered from impaired financial assets. The SMFG Group has collected and accumulated historical data on
amounts ultimately recovered from impaired financial assets. The homogeneous groups are determined on the basis of similar credit risk characteristics. For every group, the SMFG Groups grading processes are established considering asset type,
industry, geographical location, collateral type, past-due status and other relevant characteristics (see Note 45 Financial Risk Management). These characteristics are relevant to the estimation of future cash flows for groups of such
assets as being indicative of the debtors ability to pay all amounts due according to the contractual terms of the assets being evaluated. Historical loss experience is adjusted on the basis of current observable data, including bankruptcy
trends after the occurrence of significant events which had a negative effect on the global economy and the economies in which a large portion of the SMFG Groups assets are located, to reflect the effects of current conditions that did not
affect the period on which the historical loss experience is based and to remove the effects of conditions in the historical period that do not currently exist.

The carrying amount of the asset is reduced by the impairment loss either directly or through the use of an allowance account. Changes in the carrying amount of the allowance account are recognized in the
consolidated income statement. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as an improvement in the debtors
credit rating), the previously recognized impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognized in Impairment charges on financial assets in the consolidated income statement.

If a financial asset is determined to be uncollectible, it is written off against the related allowance account.
Uncollectible financial assets are normally written off when there is no expectation of further recovery after any collateral is foreclosed and the amount of the loss has been determined. Those assets primarily include loans for borrowers that have
been legally or formally declared bankrupt and borrowers that may not have been legally or formally declared bankrupt but are essentially bankrupt.

Loans and advances that would otherwise be past due or impaired, but whose terms have been renegotiated without providing any financial concessions, are not classified as impaired loans and advances as
the terms of the



F-18



---

##### Table of Contents

renegotiated loans and advances do not result in a decrease in the net present value of the loan discounted at its original effective interest rate. The collective allowance is estimated for
these loans and advances by including them in homogenous groups on the basis of applying the SMFG Groups grading process, taking into account the renegotiation and their consequent higher risk status. These loans and advances are continually
assessed for impairment until maturity or derecognition.

In addition, provisions for loan commitments are calculated where it
is probable that the SMFG Group will incur a loss and recognized in other provisions (see Note 20 Provisions).

Available-for-sale financial assets

At the end of each reporting period, the SMFG Group assesses whether there is objective evidence that a financial asset or a group of financial assets is impaired. In the case of equity instruments
classified as available-for-sale, a significant or prolonged decline in the fair value of the instruments below cost is also considered in determining whether the assets are impaired. In the case of debt instruments classified as available-for-sale,
impairment is assessed based on the same criteria as for loans and advances and held-to-maturity investments. If any objective evidence of impairment exists for available-for-sale financial assets, the cumulative loss measured as the
difference between the cost and the current fair value, less any impairment loss on that financial asset previously recognized in profit or lossis removed from equity and recognized in the consolidated income statement.

Impairment losses recognized in the consolidated income statement on equity instruments classified as available-for-sale are not reversed
through the consolidated income statement. For debt instruments classified as available-for-sale, if the fair value recovers in a subsequent period and it can be objectively associated with an event occurring after the impairment loss was recognized
in the consolidated income statement, the impairment loss is reversed through the consolidated income statement.

Property, Plant and
Equipment

All property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment
losses, if any. Additions and subsequent expenditures are capitalized only to the extent that they enhance the future economic benefits expected to be derived from the assets. Repairs and maintenance costs are expensed as incurred.

Land is not depreciated. Depreciation of other assets is calculated using the straight-line method to allocate their cost to their
residual values over their estimated useful lives, as follows:



| |  |  | Buildings: 750 years;
| | - |  | ----------------------



| |  |  | Leased assets: the shorter of the lease term and the estimated useful life, which is principally 520 years; and
| | - |  | ----------------------------------------------------------------------------------------------------------------



| |  |  | Assets for rent (including assets for aircraft leasing business) and others: 240 years.
| | - |  | ----------------------------------------------------------------------------------------

The residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. Gains and losses on
disposal are determined by comparing the proceeds with the carrying amount. These are included in Other income and Other expenses in the consolidated income statement.

Intangible Assets

Goodwill

Goodwill represents the excess of the aggregate of the consideration transferred, the amount of any non-controlling interest and the
acquisition-date fair value of the SMFG Groups previously held equity interest in the



F-19



---

##### Table of Contents

acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed, and is initially recognized at the date of acquisition. Goodwill is
allocated to cash-generating units for the purpose of impairment testing. A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflows from other assets or groups of
assets. Impairment testing is performed at least annually and whenever there is an indication that the cash-generating unit may be impaired. When the SMFG Group disposes of all or part of a cash-generating unit to which goodwill is allocated, the
goodwill associated with the cash-generating unit is included in the carrying amount of the cash-generating unit when determining the gain or loss on disposal.

Software

Purchased software is carried at cost less accumulated
amortization and accumulated impairment losses, if any.

Expenditure on internally generated software is recognized as an
asset if the SMFG Group can demonstrate its intention and ability to complete the development and use the software in a manner that will generate future economic benefits and it can reliably measure the costs to complete the development. Internally
generated software is carried at capitalized cost less accumulated amortization and accumulated impairment losses, if any. Costs associated with maintaining software are expensed as incurred.

Software is amortized using the straight-line method over the estimated useful life, which is generally five years.

Contractual customer relationships and trademarks

Contractual customer relationships and trademarks acquired in a business combination are recognized at fair value at the acquisition date. Contractual customer relationships and trademarks are carried at
cost less accumulated amortization or impairment losses, if any. Contractual customer relationships and trademarks are amortized using the straight-line method over their estimated useful lives of 10 to 20 years.

Other intangible assets

Other intangible assets primarily consist of leasehold rights. They are recognized only when the SMFG Group legally obtains the rights and can reliably measure the fair value. Leasehold rights have an
indefinite useful life and they are not amortized but are tested for impairment annually.

Impairment of Non-Financial Assets

Non-financial assets are reviewed for impairment at the end of each reporting period and whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. If any such indication exists, the assets recoverable amount is estimated. An impairment loss is recognized in the consolidated income statement if the assets
carrying amount is greater than its estimated recoverable amount. The recoverable amount is estimated as the higher of the assets fair value less costs to sell and value in use. Value in use is the present value of the future cash flows
expected to be derived from the asset. In addition, irrespective of whether there is any indication of impairment, intangible assets that have an indefinite useful life are tested for impairment annually.

For the purposes of conducting impairment reviews, assets are grouped into cash-generating units to which the assets belong.
Non-financial assets other than impaired goodwill are reviewed for possible reversal of the impairment loss at the end of each reporting period. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.



F-20



---

##### Table of Contents

Leases

As lessee

A lease agreement in which the lessor does not transfer
to the lessee substantially all the risks and rewards of ownership of assets is classified as an operating lease. The leases entered into by the SMFG Group as a lessee are primarily operating leases. Operating lease payments, net of lease incentives
received from the lessor, are recognized in the consolidated income statement on a straight-line basis over the lease term.

A
lease agreement in which the lessor transfers to the lessee substantially all the risks and rewards of ownership of assets, with or without ultimate legal title, is classified as a finance lease. For finance leases, the SMFG Group initially
recognizes the leased asset at the lower of the fair value of the asset or the present value of the minimum lease payments. Subsequent to initial recognition, assets are accounted for in accordance with the accounting policy applicable to those
assets. The corresponding liability to the lessor is recognized as a lease obligation within Borrowings in the consolidated statement of financial position. Interest expense is recognized over the term of the lease based on the interest
rate implicit in the lease so as to give a constant rate of interest on the remaining balance of the liability.

As
lessor

When the SMFG Group acts as a lessor in an operating lease, the assets for rent are included in Property,
plant and equipment in the consolidated statement of financial position and are depreciated over their expected useful lives on a basis consistent with similar assets in property, plant and equipment. Income from operating leases (net of any
incentives given to the lessee) is recognized on a straight-line basis over the lease term and included in Other income in the consolidated income statement. Initial direct costs incurred in negotiating and arranging an operating lease
are added to the carrying amount of the leased assets and recognized as an expense on a straight-line basis over the lease term.

When the SMFG Group is a lessor in a finance lease, the leased assets are derecognized and the present value of the future lease payments is recognized as a lease receivable within Loans and
advances in the consolidated statement of financial position. The difference between the gross receivables, i.e., undiscounted future cash flows, and the present value of the receivables is recognized as unearned finance income. Finance income
is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the finance lease.

Sale and leaseback

For sale and leaseback transactions leading to
an operating lease, and the transaction took place at fair value, any profit or loss is recognized immediately. If the sale price is at or below fair value, any profit or loss is recognized immediately. However, if the loss is compensated for by
future rentals at a below market price, the loss is deferred and amortized over the period that the asset is expected to be used. If the sale price is above fair value, any profit is deferred and amortized over the useful life of the asset. If the
fair value of the asset is less than the carrying value of the asset at the date of transaction, that difference is recognized immediately as a loss on the sale.

Cash and Cash Equivalents

For the purposes of the consolidated statement
of cash flows, cash and cash equivalents include cash on hand, demand deposits, and other short-term highly liquid financial assets with original maturities of three months or less, which are subject to insignificant risk of changes in their fair
value.



F-21



---

##### Table of Contents

Provisions

A provision is recognized if, as a result of a past event, the SMFG Group has a present legal or constructive obligation that can be estimated reliably and it is probable that an outflow of economic
benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability.

Financial Guarantee Contracts

Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in
accordance with the terms of a debt instrument. Such financial guarantees are given to banks, financial institutions and other bodies on behalf of customers to secure loans, overdrafts and other banking facilities. Financial guarantees are initially
recognized at fair value on the date the guarantee is given.

Subsequent to initial recognition, the SMFG Groups
liabilities under such guarantees are measured at the higher of the initial measurement, less amortization calculated to recognize in the consolidated income statement the fee income earned over the guarantee period, and the best estimate of the
expenditure required to settle any financial obligation arising at the end of the reporting period. These estimates are determined based on experience of similar transactions and history of past losses, supplemented by the judgment of management.

Any increase in the liability relating to financial guarantee contracts is included in Other expenses in the
consolidated income statement.

Employee Benefits

The SMFG Group operates various retirement benefit plans and other employee benefit plans.

Retirement benefits

The SMFG Group has defined benefit plans, such
as defined benefit pension plans and lump-sum severance indemnity plans, and defined contribution plans.

Defined benefit
plans

The liabilities and the assets recognized in the consolidated statement of financial position in respect of defined
benefit plans are the present value of the defined benefit obligation less the fair value of plan assets.

The present value
of the defined benefit obligation is calculated annually by qualified actuaries. In calculating the present value of the defined benefit obligations, the related current service cost, and past service cost, the SMFG Group attributes the retirement
benefits to years of service under the benefit formula. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using market yields of AA credit-rated corporate bonds that have terms to
maturity approximating those of the related obligations. In cases where there is no deep market in corporate bonds with a sufficiently long maturity to match the estimated maturity of the benefit payments, the SMFG Group uses current market rates of
the appropriate term to discount shorter term payments and estimates the discount rates for longer maturities by extrapolating current market rates along the yield curve.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions in the year, and return on plan assets excluding interest income are recognized in other comprehensive
income and are never reclassified to profit or loss.

Past service costs are recognized immediately in the consolidated income
statement.



F-22



---

##### Table of Contents

When the calculations above result in a benefit to the SMFG Group, the recognized asset is
limited to the present value of any economic benefits available in the form of any refunds from the plan or reductions in future contributions to the plan. An economic benefit is available to the SMFG Group if it is realizable during the life of the
plan or on settlement of the plan obligations.

Defined contribution plans

Contributions to defined contribution plans are recognized as an expense in the consolidated income statement when they are due.

Other long-term employee benefits

The SMFG Groups net obligation with respect to long-term employee benefits other than retirement benefits is the amount of future benefit that employees have earned in return for their service in
the current and prior periods; that benefit is discounted to determine its present value and the fair value of any related assets is deducted. The discount rates are market yields of AA credit-rated corporate bonds that have terms to maturity
approximating those of the related obligations. The calculation of obligations is performed using the projected unit credit method. Any actuarial gains or losses and past service costs are recognized in the consolidated income statement in the
period in which they arise.

Short-term employee benefits

Short-term employee benefits, such as salaries, paid absences and other benefits are accounted for on an accrual basis over the period in
which employees have provided services. Bonuses are recognized to the extent that the SMFG Group has a present obligation to its employees that can be measured reliably.

Income Tax

Income tax expense comprises current and deferred taxes. Income
tax expense is recognized in the consolidated income statement except for that related to items recognized directly in equity. In such case, the income tax expense is recognized in equity.

Current tax is the expected tax payable or receivable on the taxable profit or loss for the fiscal year.

Deferred taxes are recognized, using the balance sheet liability method, for temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred taxes are determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected
to apply when the related deferred tax assets are realized or the deferred tax liabilities are settled.

Deferred tax assets
principally arise from tax losses carried forward, impairment of investment securities and loans, and the allowance for loan losses.

Deferred taxes are not recognized for the following temporary differences: (a) the initial recognition of goodwill; (b) the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss; and (c) the temporary differences associated with investments in subsidiaries, associates, and joint ventures, when the parent investor is able to control the
timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized, only to the extent that it is probable that future taxable profit will be available against
which the tax losses carried forward and the deductible temporary differences can be utilized.



F-23



---

##### Table of Contents

Debt and equity securities in issue

On initial recognition, financial instruments issued by the SMFG Group are classified in accordance with the substance of the contractual
agreement as financial liabilities where the contractual arrangement results in the SMFG Group having an obligation to either deliver cash or another financial asset to the holder, or to satisfy the obligation other than by delivering a fixed number
of equity shares in exchange for a fixed amount of cash or another financial asset. The instruments or their components are classified as equity where they do not meet the definition of a liability and show evidence of a residual interest in the
entitys assets after deducting all of its liabilities. Compound financial instruments that contain both liability and equity elements are accounted for separately with the equity component being assigned the residual amount after deducting
from the entire value of the compound financial instrument the fair value of the liability component which has been determined separately.

Shareholders Equity

Stock issuance costs

Incremental costs directly attributable to the issuance of new shares or options including those issued as a result of a business combination transaction are deducted from the proceeds and shown in
equity, net of tax.

Dividends on common stock and preferred stock

Dividends on common stock and preferred stock are recognized in equity in the period in which they are approved by the shareholders.
Dividends for the fiscal year that are declared after the reporting period are described in Note 40 Dividends Per Share.

Treasury stock

Where SMFG or any other member of the Group
companies purchase SMFGs common or preferred stock, the consideration paid is deducted from equity as treasury stock until they are cancelled or sold. No gain or loss is recognized on the purchase, sale, or cancellation of SMFGs own
equity instruments and the consideration paid or received is recognized in equity.

Interest Income and Expense

Interest income and expense for all financial instruments, except for those classified as held for trading and financial assets at fair
value through profit or loss, are recognized in Interest income and Interest expense in the consolidated income statement using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability and of
allocating the interest income or interest expense over the relevant period.

The effective interest rate is the rate that
discounts the estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the
effective interest rate, the SMFG Group estimates cash flows, considering the contractual terms of the financial instrument but not including future credit losses. The calculation includes fees and points paid or received between parties to the
contract that are an integral part of the effective interest rate of the financial instrument, transaction costs and other premiums or discounts.

Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is thereafter recognized using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss. For financial assets measured at amortized cost, the interest rate is the original effective interest rate.



F-24



---

##### Table of Contents

Fee and Commission Income

Fee and commission income includes fee and commission income arising from a diverse range of services that the SMFG Group provides to its customers. Fee and commission income can be divided into two
categories: fee and commission income from providing transaction services, and fee and commission income earned from services that are provided over a certain period of time. Fee and commission income earned from providing transaction services is
recognized when the service has been completed or the event has occurred. This fee and commission income includes fees on funds transfer and collection services, service charges from deposit accounts, fees and commissions on the securities business,
underwriting fees, brokerage fees, and fee and commission income from other services. Fee and commission income earned from services over a period of time is recognized over that service period. This fee and commission income includes fees on
credit-related businesses, investment fund businesses, and fee and commission income from other services. Loan commitment fees, together with the related direct cost, for loans that are likely to be drawn down are deferred and recognized as an
adjustment to the effective interest rate on the loan. Loan commitment fees are recognized over the term of the commitment period when it is unlikely that a loan will be drawn down.

Net Trading Income

Net trading income consists of margins made on
market-making and customer business, as well as changes in fair value of trading assets and liabilities and derivative financial instruments, caused by movements in interest rates, exchange rates, equity prices and other market variables. It also
includes net interest and dividend income on trading assets and liabilities.

Net Income from Financial Assets at Fair Value through Profit
or Loss

Net income from financial assets at fair value through profit or loss includes all gains and losses arising from
changes in the fair value of these financial assets and sales of such assets, and interest and dividend income on these financial assets.

Net Investment Income

Net investment income includes gains and losses on the disposal of available-for-sale financial assets, and dividends from
available-for-sale equity instruments.

Earnings Per Share

The SMFG Group presents basic and diluted earnings per share (EPS) data for its common stock. Basic EPS is calculated by dividing the profit or loss attributable to common shareholders of the
SMFG Group by the weighted average number of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common stock outstanding for
the effects of all dilutive potential common stock including share options and other convertible instruments.

Recent Accounting
Pronouncements

The SMFG Group is currently assessing the impact of the following standards, amendments to standards, and
interpretations that are not yet effective and have not been early adopted:

Accounting for Acquisitions of Interests in
Joint Operations (Amendments to IFRS 11)

In May 2014, the IASB published amendments to IFRS 11 Joint
Arrangements, which provides new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business. The amendments require the acquirer in such acquisitions to apply all of the principles on
business combinations accounting in IFRS 3 Business Combinations and other IFRSs except for those principles that conflict with the



F-25



---

##### Table of Contents

guidance in IFRS 11. The amendments are effective for annual periods beginning on or after January 1, 2016 and are not expected to have a material impact on the SMFG Groups consolidated
financial statements.

Clarification of Acceptable Methods of Depreciation and Amortisation (Amendments to IAS 16 and
IAS 38)

In May 2014, the IASB published amendments to IAS 16 Property, Plant and Equipment and IAS 38
Intangible Assets to clarify that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other
than the consumption of the economic benefits embodied in the asset. The amendments are effective for annual periods beginning on or after January 1, 2016 and are not expected to have a material impact on the SMFG Groups consolidated financial
statements.

Agriculture: Bearer Plants (Amendments to IAS 16 and IAS 41)

In June 2014, the IASB published amendments to IAS 16 and IAS 41 Agriculture to change the financial reporting for bearer
plants, such as grape vines, rubber trees and oil palms. The amendments require bearer plants to be accounted for in the same way as property, plant and equipment, and include them within the scope of IAS 16 instead of IAS 41. The amendments
are effective for annual periods beginning on or after January 1, 2016 and are not expected to have a material impact on the SMFG Groups consolidated financial statements.

Equity Method in Separate Financial Statements (Amendments to IAS 27)

In August 2014, the IASB published the narrow-scope amendments to IAS 27 Separate Financial Statements to allow an entity to
use the equity method to account for investments in subsidiaries, joint ventures and associates in its separate financial statements. The amendments are effective for annual periods beginning on or after January 1, 2016 and are not expected to have
a material impact on the SMFG Groups consolidated financial statements.

Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)

In September 2014, the IASB issued the
narrow-scope amendments to IFRS 10 and IAS 28 Investments in Associates and Joint Ventures to address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of
assets between an investor and its associate or joint venture. The effective date of applying the amendments was January 1, 2016 when they were originally issued, however, in December 2015, the IASB issued Effective Date of Amendments to IFRS 10
and IAS 28 to remove the effective date and indicated that a new effective date will be determined at a future date when it has finalized revisions, if any, that result from its research project on the equity accounting. The SMFG Group is
currently evaluating the potential impact that the adoption of the amendments will have on its consolidated financial statements.

Annual Improvements to IFRSs 2012-2014 Cycle

In September 2014, the
IASB issued Annual Improvements to IFRSs 2012-2014 Cycle, which is a collection of amendments to four IFRSs. The IASB uses the annual improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of
any other project. The amendments are effective for annual periods beginning on or after January 1, 2016 and are not expected to have a material impact on the SMFG Groups consolidated financial statements.

Disclosure Initiative (Amendments to IAS 1)

In December 2014, the IASB issued amendments to IAS 1 Presentation of Financial Statements as part of its major initiative to improve presentation and disclosure in financial reports. The
amendments are designed to



F-26



---

##### Table of Contents

encourage entities to apply professional judgment in determining what information to disclose in their financial statements. The amendments are effective for annual periods beginning on or after
January 1, 2016.

Investment Entities: Applying the Consolidated Exception (Amendments to IFRS 10, IFRS 12 and IAS 28)

In December 2014, the IASB issued narrow-scope amendments to IFRS 10, IFRS 12 Disclosure of Interests in Other
Entities and IAS 28 to introduce minor clarifications to the requirements when accounting for investment entities. The amendments also provide relief in particular circumstances, which will reduce the costs of applying the standards. The
amendments are effective for annual periods beginning on or after January 1, 2016 and are not expected to have a material impact on the SMFG Groups consolidated financial statements.

Recognition of Deferred Tax Assets for Unrealized Losses (Amendments to IAS 12)

In January 2016, the IASB issued narrow-scope amendments to IAS 12 Income Taxes to clarify the requirements on recognition of
deferred tax assets for unrealized losses related to debt instruments measured at fair value. The amendments are effective for annual periods beginning on or after January 1, 2017. The SMFG Group is currently evaluating the potential impact that the
adoption of the amendments will have on its consolidated financial statements.

Disclosure Initiative (Amendments to IAS
7)

In January 2016, the IASB issued amendments to IAS 7 Statement of Cash Flows, which require an entity
to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including changes from cash flows and non-cash changes. The amendments are effective for annual periods beginning
on or after January 1, 2017.

IFRS 15 Revenue from Contracts with Customers

In May 2014, the IASB published IFRS 15 Revenue from Contracts with Customers to establish principles for reporting useful
information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entitys contract with customers. The core principle of IFRS 15 is to recognize revenue to depict the
transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 also requires enhanced disclosures about revenue,
provides guidance for transactions that were not previously addressed comprehensively and improves guidance for multiple-element arrangements. In April 2016, the IASB issued Clarifications to IFRS 15 Revenue from Contracts with Customers,
which clarifies some requirements and provides additional transitional relief for entities that are implementing the standard. The effective date of applying IFRS 15 was January 1, 2017 when it was originally issued, however, in September 2015, the
IASB issued Effective Date of IFRS 15 (Amendments to IFRS 15), which defers the effective date to annual periods beginning on or after January 1, 2018. The SMFG Group is currently evaluating the potential impact that the adoption of
the standard will have on its consolidated financial statements.

IFRS 9 Financial Instruments

In July 2014, the IASB published IFRS 9 Financial Instruments, which is the comprehensive standard to
replace IAS 39. The standard contains the following new requirements for classification and measurement of financial assets and liabilities, impairment of financial assets and hedge accounting:

Classification and measurement. The standard requires all financial assets to be classified into three categories, namely,
amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVPL), based on the business model within which they are held and their contractual cash flow characteristics. A
financial asset is measured at amortized cost if the asset is held within a business



F-27



---

##### Table of Contents

model whose objective is to hold the asset in order to collect contractual cash flows, and the assets contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding. Financial assets are measured at FVOCI if they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets, and SPPI requirements are met. Any financial assets that do not meet the criteria of amortized cost or FVOCI should be classified as FVPL. The standard also requires financial assets that contain embedded derivatives to be
classified in their entirety rather than being subject to bifurcation requirements. The standard maintains most of the requirements in IAS 39 regarding the classification and measurement of financial liabilities. However, with the new requirements,
if an entity chooses to measure a financial liability at fair value, the amount of change in its fair value that is attributable to changes in the credit risk of that liability will be presented in other comprehensive income, rather than in profit
or loss.

Impairment. The standard introduces the expected credit loss model, which is a new model for the recognition
of impairment losses, to replace the incurred credit loss model in IAS 39. Under the expected credit loss model, an entity is required to account for expected credit losses from when financial instruments are first recognized and to recognize full
lifetime expected losses on a more timely basis. An expected credit loss model will result in the recognition of impairment losses earlier than an incurred loss model.

Hedge Accounting. The standard introduces a new hedge accounting model, together with corresponding disclosures about risk management activity for those applying hedge accounting. The hedge
accounting requirements in IFRS 9 align hedge accounting more closely with risk management and establish a more principle-based approach to hedge accounting.

The standard is effective for annual periods beginning on or after January 1, 2018. The SMFG Group is currently evaluating the potential impact that the adoption of the standard will have on its
consolidated financial statements.

Classification and Measurement of Share-based Payment Transactions (Amendments to
IFRS 2)

In June 2016, the IASB issued narrow-scope amendments to IFRS 2 Share-based Payment to clarify how
to account for certain types of share-based payment transactions. The amendments are effective for annual periods beginning on or after January 1, 2018. The SMFG Group is currently evaluating the potential impact that the adoption of the amendments
will have on its consolidated financial statements.

IFRS 16 Leases

In January 2016, the IASB published IFRS 16 Leases, which sets out the principles for the recognition, measurement,
presentation and disclosure of leases, replacing IAS 17 Leases. The standard introduces a single lessee accounting model and eliminates the classification of leases as either operating leases or finance leases, requiring a lessee to
recognize assets and liabilities. A lessor continues to classify its leases as operating leases or finance leases, and to account for them differently. The standard is effective for annual periods beginning on or after January 1, 2019. The SMFG
Group is currently evaluating the potential impact that the adoption of the standard will have on its consolidated financial statements.



|3 | CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
|- | -------------------------------------------

The consolidated financial statements are influenced by estimates and management judgment, which necessarily have to be made in the course of preparation of the consolidated financial statements.
Estimates and judgments are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and which are continually evaluated.



F-28



---

##### Table of Contents

Allowance for Loan Losses

Allowance for loan losses represents managements estimate of the losses incurred in the loan portfolios at the end of each reporting period. Management exercises judgment in making assumptions and
estimations when calculating the allowance for loan losses on both individually and collectively assessed loans.

The
allowance for loan losses for individually significant impaired loans is estimated by management based on the expected future cash flows, taking into account factors such as historical loss information, the appropriateness of the borrowers
business plan or operational improvement plan, the status of progress of its plan, the overall support from financial institutions, and the realizable value of any collateral held. The allowance for loan losses for the remaining loans is
collectively estimated by grouping financial assets into portfolios on the basis of similar credit risk characteristics and using the historical loss experience for these portfolios adjusted for the effect of the current economic environment. To
assess the losses on the loan portfolios where loss events have occurred but not yet been identified, management develops assumptions and methodologies to estimate the loss identification period.

Management estimates and judgments may change from time to time as the economic environment changes or new information becomes available.
Changes in these estimates and judgments will result in a different allowance for loan losses and may have a direct impact on impairment charges. Impairment charges on loans and advances amounting to ¥118,750 million and ¥79,552 million were
recognized for the fiscal years ended March 31, 2016 and 2015, respectively, whereas previously recognized impairment charges on loans and advances amounting to ¥25,806 million were reversed for the fiscal year ended March 31, 2014. For
additional information, refer to Note 10 Loans and Advances and Note 32 Impairment Charges on Financial Assets.

Fair Value of Financial Instruments

The fair values of financial instruments where no active market exists or where quoted prices are not otherwise available are determined by using valuation techniques. In these cases, inputs to valuation
techniques are based on observable data with respect to similar financial instruments or by using models. Where observable inputs are not available, the fair value is estimated based on appropriate assumptions that a market participant would take
into account. Where valuation techniques (for example, models) are used to determine fair values, they are validated and periodically reviewed. The SMFG Group certifies significant valuation models before they are used, and calibrates them to ensure
that outputs reflect actual data and comparative market prices. To the extent practical, models use only observable data; however, inputs such as credit risk (both own and counterparty), volatilities and correlations require management to make
estimates. Changes in assumptions about these factors could affect the fair values of these financial instruments. More details about the SMFG Groups valuation techniques, significant unobservable inputs used in determining fair values and
sensitivity analyses are given in Note 43 Fair Value of Financial Assets and Liabilities.

Impairment of Available-for-sale
Financial Assets

Available-for-sale financial assets are impaired if there is objective evidence of impairment as a result
of loss events. The SMFG Group exercises judgment in determining whether there is objective evidence of occurrence of loss events, which result in a decrease in estimated future cash flows of the financial assets. The estimation of future cash flows
also requires judgment. In the assessment of impairment of available-for-sale equity instruments, the SMFG Group also considers whether there has been a significant or prolonged decline in fair value below their cost. The determination of what is a
significant or prolonged decline requires management judgment.

Impairment may occur when there is objective evidence of
deterioration in the financial conditions of the investee, industry and sector performance, or changes in operating and financing cash flows. The determination of impairment in this respect also includes significant management judgment.



F-29



---

##### Table of Contents

Management estimates and judgments may change from time to time based upon future events
that may or may not occur and changes in these estimates and judgments could adversely affect the carrying amounts of available-for-sale financial assets. Impairment charges on available-for-sale financial assets totaled ¥29,606 million,
¥10,586 million and ¥11,531 million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively. For additional information, refer to Note 9 Investment Securities and Note 32 Impairment Charges on Financial
Assets.

Impairment of Goodwill

Goodwill is tested for impairment on an annual basis or more frequently if events or changes in circumstances indicate that it may not be recoverable. If any such indication exists, then its recoverable
amount is estimated. The process to determine the recoverable amount is inherently uncertain because such recoverable amount is determined based on a number of management estimates and judgments. The SMFG Group determines the recoverable amount
using the estimated future cash flows, pre-tax discount rates, growth rates, and other factors. The estimation of future cash flows inherently reflects management judgments, even though such forecasts are prepared taking into account actual
performance and external economic data. The pre-tax discount rates and growth rates may be significantly affected by market interest rates or other market conditions, which are beyond managements control, and therefore significant management
judgments are made to determine these assumptions. These management judgments are made based on the facts and circumstances at the time of the impairment test, and may vary depending on the situation and the time. Changes in management judgments may
result in different impairment test results and different impairment amounts recognized. For the fiscal years ended March 31, 2016, 2015 and 2014, impairment losses on goodwill were ¥1,124 million, nil and nil, respectively. For additional
information, refer to Note 14 Intangible Assets.

Provision for Interest Repayment

Provision for interest repayment represents managements estimate of future claims for the refund of so-called gray zone
interest (interest on loans in excess of the maximum rate prescribed by the Interest Rate Restriction Act (ranging from 15% to 20%) up to the 29.2% maximum rate permitted under the Act Regulating the Receipt of Contributions, Receipt of
Deposits and Interest Rates), taking into account historical experience such as the number of customer claims for a refund, the amount of repayments and the characteristics of customers, and the length of the period during which claims are expected
to be received in the future.

Management estimates and judgments may change from time to time as the legal environment and
market conditions change or new information becomes available. Changes in these estimates and judgments could affect the balance of provision for interest repayment. Provision for interest repayment is recorded in provisions as a liability, and it
totaled ¥229,422 million and ¥166,715 million at March 31, 2016 and 2015, respectively. For additional information, refer to Note 20 Provisions.

Retirement Benefits

The SMFG Group has defined benefit plans such as
defined benefit pension plans and lump-sum severance indemnity plans. The present value of the defined benefit obligation is calculated based on actuarial valuations that are dependent upon a number of assumptions, including discount rates,
mortality rates and future salary (benefit) increases. The discount rates are equivalent to market yields of AA credit-rated corporate bonds that have terms to maturity approximating those of the related obligations. Future mortality rates are based
on the official mortality table generally used for actuarial assumptions in Japan. Other assumptions used for the calculation of the defined benefit obligation are based on historical records. Due to the long-term nature of these plans, such
estimates are subject to significant uncertainty. Any change in these assumptions will impact actuarial gains and losses, as well as the present value of the defined benefit obligations and the net retirement benefit expense for each period.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions in the year, and return on plan assets excluding interest income are recognized in other comprehensive income and are never reclassified to profit or
loss.



F-30



---

##### Table of Contents

The difference between the fair value of the plan assets and the present value of the
defined benefit obligation at the end of the reporting period is recognized as assets and liabilities in the consolidated statement of financial position. When this calculation for each plan results in a benefit to the SMFG Group, the recognized
asset is limited to the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. An economic benefit is available to the SMFG Group, if it is realizable during the life
of the plan or on settlement of the plan obligation. The net total of assets and liabilities in the consolidated statement of financial position amounted to net assets of ¥177,112 million and ¥332,674 million at March 31, 2016 and 2015,
respectively. For additional information, refer to Note 23 Retirement Benefits.

Deferred Tax Assets

Deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized, only to the extent that it
is probable that future taxable profit will be available against which the tax losses carried forward and the deductible temporary differences can be utilized. This assessment requires significant management estimates and judgments. Future taxable
profit is estimated based on, among other relevant factors, forecasted results of operations, which are based on historical financial performance and the business plans that management believes to be prudent and feasible. While the SMFG Group
carefully assesses the realization of tax losses carried forward and deductible temporary differences, the actual taxable profit in the future may be less than the forecast. The deferred tax assets amounted to ¥115,314 million and ¥117,500
million in the consolidated statement of financial position at March 31, 2016 and 2015, respectively, while the net total of deferred tax assets and liabilities amounted to net liabilities of ¥220,574 million and ¥446,305 million at
March 31, 2016 and 2015, respectively. For additional information, refer to Note 22 Deferred Income Tax.



|4 | SEGMENT ANALYSIS
|- | ----------------

Business Segments

The SMFG Groups business segment information is prepared based on the internal reporting system utilized by
management to assess the performance of its business segments.

The SMFG Group has four main business segments: Commercial
Banking, Leasing, Securities, and Consumer Finance, with the remaining operations recorded in Others. The business segment information covers SMBC, which accounts for the major portion of the SMFG Groups total assets and revenue, in Commercial
Banking, Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL) in Leasing, SMBC Nikko Securities Inc. (SMBC Nikko Securities) and SMBC Friend Securities Co., Ltd. (SMBC Friend Securities) in Securities, and
Sumitomo Mitsui Card Company, Limited (Sumitomo Mitsui Card), Cedyna Financial Corporation (Cedyna) and SMBC Consumer Finance Co., Ltd. (SMBC Consumer Finance) in Consumer Finance.

Commercial Banking

SMBC represents the majority of the Commercial Banking segment, and the remainder includes domestic banking subsidiaries, such as SMBC Trust Bank Ltd. (SMBC Trust Bank), Kansai Urban Banking
Corporation (KUBC) and THE MINATO BANK, LTD. (The Minato Bank), as well as foreign subsidiaries, such as Sumitomo Mitsui Banking Corporation Europe Limited (SMBC Europe), Sumitomo Mitsui Banking Corporation
(China) Limited (SMBC (China)) and Manufacturers Bank. Since SMBC has a significant impact on the overall performance of the SMFG Group, its performance is reported to management in more detail by dividing it into four business units by
customer market: the Wholesale Banking Unit, the Retail Banking Unit, the International Banking Unit and the Treasury Unit. In addition to the four business units, the Investment Banking Unit, the Corporate Advisory Division, the Private Advisory
Division and the Transaction Business Division of SMBC provide a broad range of financial products, services and solutions to address sophisticated



F-31



---

##### Table of Contents

and diverse issues and needs of SMBCs customers. The Corporate Advisory Division operates within the Wholesale Banking Unit, and the Private Advisory Division operates within the Wholesale
Banking Unit and the Retail Banking Unit, while the Transaction Business Division operates within the Wholesale Banking Unit, the Retail Banking Unit and the International Banking Unit. The revenues and expenses of these units and divisions are
generally allocated to each business unit.

SMBCs Wholesale Banking Unit

SMBCs Wholesale Banking Unit aims to offer business solutions for the increasingly complex and diverse management issues that are
faced by large Japanese corporations, including listed companies and mid-sized companies, and, together with certain of the SMFG Group companies, provides a wide range of financial products and services targeting those corporations and companies,
through its sales channels. The financial products and services that this business unit provides include deposits, loans including syndicated loans, commitment lines, structured finance and nonrecourse loans, settlement services, cash management,
leasing, factoring, management information systems consulting, collection and investment banking services.

SMBCs
Retail Banking Unit

SMBCs Retail Banking Unit provides financial services to both consumers residing in Japan and
domestic small-sized companies. For consumers, this business unit offers a wide range of financial services including personal bank accounts, housing loans and investment trusts, and provides pension-type insurance products and life insurance
products as an agent. For small-sized companies, this business unit provides a wide array of financial products and services to comprehensively address in the same place business owners needs as both corporate managers and individuals such as
business and asset succession.

SMBCs International Banking Unit

SMBCs International Banking Unit mainly supports companies, financial institutions, sovereign/quasi-sovereign entities outside
Japan, and multinational companies operating in Japan. This business unit has branches in the Americas, Europe and Middle East, and Asia and Oceania regions, forming a global network. This business unit provides a variety of tailored products and
services including loans, deposits, clearing services, trade finance, project finance, loan syndication and global cash management services.

SMBCs Treasury Unit

SMBCs Treasury Unit operates in the
domestic and international money, foreign exchange, securities and derivatives markets to serve customer needs and SMBCs own asset liability management requirements. To further expand SMBCs customer base, this business unit also seeks to
provide specialized solutions and enhance customer service capabilities in market transactions through providing a variety of products from traditional money and foreign exchange transactions to derivative transactions.

SMBCs Others

SMBCs Others represents the difference between the aggregate of SMBCs four business units and SMBC as a whole. SMBCs Others includes the profit and loss amounts related to the Corporate
Staff Unit, the Corporate Services Unit, the Compliance Unit, the Risk Management Unit and the Internal Audit Unit, which do not belong to any of the four business units. Those amounts mainly consist of administrative expenses related to the
headquarters operations and profit or loss on the activities related to capital management.



F-32



---

##### Table of Contents

Leasing

Leasing mainly consists of SMFL, SMBC Leasing and Finance, Inc., a U.S. subsidiary, and Sumitomo Mitsui Auto Service Company Limited, an
associate of the SMFG Group. SMFL is one of the major leasing companies in Japan and provides a variety of leasing services including equipment, operating, leveraged and aircraft leasing.

Securities

Securities mainly consists of SMBC Nikko Securities and SMBC Friend Securities. SMBC Nikko Securities is one of the major Japanese securities brokers and offers a wide range of financial products,
investment consultation and administration services to its individual and corporate customers in Japan. For individual customers, SMBC Nikko Securities provides consulting services to meet diversified asset management needs and an online trading
tool. For corporate customers, it offers trading capabilities and financial products, debt and equity underwriting, and M&A advisory services, mainly in Japan. SMBC Friend Securities is a full-line securities company focusing on retail business
in Japan.

Consumer Finance

Consumer Finance mainly consists of Sumitomo Mitsui Card, Cedyna and SMBC Consumer Finance. Sumitomo Mitsui Card is a leading company in the domestic credit card industry, having introduced the Visa brand
into the Japanese market. Sumitomo Mitsui Card conducts a comprehensive credit card business and offers a variety of settlement and financing services. Cedyna conducts credit card, installment (such as shopping credit and automobile loan) and
solution (such as collection and factoring) businesses. SMBC Consumer Finance provides consumer loans that consist mainly of unsecured loans to individuals, and engages in other business including a loan guarantee business.

SMFGs Others

SMFGs Others represents the difference between the aggregate of Commercial Banking, Leasing, Securities, and Consumer Finance segments, and the SMFG Group as a whole. It mainly consists of profit or
loss from SMFG on a stand-alone basis, other subsidiaries and equity-method associates, including The Japan Research Institute, Limited. It also includes internal transactions between the SMFG Group companies, which are eliminated in the
consolidated financial statements.

Measurement of Segment Profit or Loss

The business segment information is prepared under the management approach. Consolidated net business profit is used as a profit indicator
of banks in Japan. Consolidated net business profit is calculated by deducting general and administrative expenses (i.e., the total of personnel expense, non-personnel expense and tax, excluding nonrecurring factors) from gross profits (i.e., the
total of net interest income, trust fees, net fee and commission income, net trading income and net other operating income). While the SMFG Groups disclosure complies with the requirements on segment information in accordance with IFRS, the
figures reported to management and disclosed herein are prepared under accounting principles generally accepted in Japan (Japanese GAAP). Consequently, the business segment information does not agree with the figures in the consolidated
financial statements under IFRS. These differences are addressed in the Reconciliation of Segmental Results of Operations to Consolidated Income Statement.

Information regarding the total assets of each segment is not used by management in deciding how to allocate resources and assess performance. Accordingly, total assets are not included in the business
segment information.



F-33



---

##### Table of Contents

Segmental Results of Operation

For the fiscal year ended March 31, 2016:



|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |          |  
|---------------------------------------------- |  | --------------------- | ------ | - | ------------------ | - | ------ | ------------------------- |  | - | ------------ | - |  | ------ | ----- | - | ---------- | - | ------ | - |  | - | ------- | - |  | - | ------ | - |  | - | -------- | -
|                                               |  | Commercial Banking    |       
|                                               |  | SMBC                  |        |   | Others(2)          |   |        | Total                     | 
|                                               |  | WholesaleBanking Unit |        |   | RetailBanking Unit |   |        | InternationalBanking Unit |  |   | TreasuryUnit |   |  | Others |       |   | SMBC Total |   |        |   |  |   |         |  
|                                               |  | (In billions)         |       
|Gross profit                                   |  | ¥                     | 545.3  |   |                    | ¥ | 372.8  |                           |  | ¥ | 356.0        |   |  | ¥      | 293.6 |   |            | ¥ | (33.4  | ) |  | ¥ | 1,534.3 |   |  | ¥ | 303.0  |   |  | ¥ | 1,837.3  |  
|Net interest income                            |  |                       | 300.1  |   |                    |   | 302.0  |                           |  |   | 225.4        |   |  |        | 168.2 |   |            |   | 27.9   |   |  |   | 1,023.6 |   |  |   | 174.4  |   |  |   | 1,198.0  |  
|Net non-interest income                        |  |                       | 245.2  |   |                    |   | 70.8   |                           |  |   | 130.6        |   |  |        | 125.4 |   |            |   | (61.3  | ) |  |   | 510.7   |   |  |   | 128.6  |   |  |   | 639.3    |  
|General and administrative expenses and others |  |                       | (205.1 | ) |                    |   | (354.1 | )                         |  |   | (116.5       | ) |  |        | (29.1 | ) |            |   | (100.7 | ) |  |   | (805.5  | ) |  |   | (218.9 | ) |  |   | (1,024.4 | )
|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |          |  
|Consolidated net business profit(1)(7)         |  | ¥                     | 340.2  |   |                    | ¥ | 18.7   |                           |  | ¥ | 239.5        |   |  | ¥      | 264.5 |   |            | ¥ | (134.1 | ) |  | ¥ | 728.8   |   |  | ¥ | 84.1   |   |  | ¥ | 812.9    |  
|                                               |  |                       |        |   |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |          |  



|                                               |  |               |       |   |            |   |       |                        |  |   |                        |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |        |   |  |   |        |   |  |   |       |   |  |   |          |  
|---------------------------------------------- |  | ------------- | ----- | - | ---------- | - | ----- | ---------------------- |  | - | ---------------------- | - |  | -------- | ----- | - | ------------------ | - | ------ | --------- |  | - | ---------------------- | - |  | -------- | ------ | - |  | - | ------ | - |  | - | ------ | - |  | - | ----- | - |  | - | -------- | -
|                                               |  | Leasing       |       |   | Securities |   |       | Consumer Finance       |  |   | Others                 |   |  | Total    |      
|                                               |  | SMFL(3)       |       |   | Total(4)   |   |       | SMBCNikkoSecurities(5) |  |   | SMBC Friend Securities |   |  | Total(4) |       |   | SumitomoMitsuiCard |   |        | Cedyna(6) |  |   | SMBCConsumerFinance(3) |   |  | Total(4) |        |   |  |   |        |   | 
|                                               |  | (In billions) |      
|Gross profit                                   |  | ¥             | 142.8 |   |            | ¥ | 162.6 |                        |  | ¥ | 316.3                  |   |  | ¥        | 43.8  |   |                    | ¥ | 357.1  |           |  | ¥ | 208.5                  |   |  | ¥        | 165.2  |   |  | ¥ | 233.4  |   |  | ¥ | 611.5  |   |  | ¥ | (64.5 | ) |  | ¥ | 2,904.0  |  
|Net interest income                            |  |               | 17.9  |   |            |   | 22.9  |                        |  |   | 1.6                    |   |  |          | 1.5   |   |                    |   | 4.6    |           |  |   | 13.6                   |   |  |          | 23.7   |   |  |   | 157.0  |   |  |   | 188.9  |   |  |   | 8.6   |   |  |   | 1,423.0  |  
|Net non-interest income                        |  |               | 124.9 |   |            |   | 139.7 |                        |  |   | 314.7                  |   |  |          | 42.3  |   |                    |   | 352.5  |           |  |   | 194.9                  |   |  |          | 141.5  |   |  |   | 76.4   |   |  |   | 422.6  |   |  |   | (73.1 | ) |  |   | 1,481.0  |  
|General and administrative expenses and others |  |               | (62.1 | ) |            |   | (67.1 | )                      |  |   | (255.8                 | ) |  |          | (38.8 | ) |                    |   | (307.2 | )         |  |   | (157.1                 | ) |  |          | (124.2 | ) |  |   | (104.8 | ) |  |   | (397.2 | ) |  |   | 34.8  |   |  |   | (1,761.1 | )
|                                               |  |               |       |   |            |   |       |                        |  |   |                        |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |        |   |  |   |        |   |  |   |       |   |  |   |          |  
|Consolidated net business profit(1)(7)         |  | ¥             | 80.7  |   |            | ¥ | 95.5  |                        |  | ¥ | 60.5                   |   |  | ¥        | 5.0   |   |                    | ¥ | 49.9   |           |  | ¥ | 51.4                   |   |  | ¥        | 41.0   |   |  | ¥ | 128.6  |   |  | ¥ | 214.3  |   |  | ¥ | (29.7 | ) |  | ¥ | 1,142.9  |  
|                                               |  |               |       |   |            |   |       |                        |  |   |                        |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |        |   |  |   |        |   |  |   |       |   |  |   |          |  



F-34



---

##### Table of Contents

For the fiscal year ended March 31, 2015:



|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|---------------------------------------------- | ---- | --------------------- | ------ | --------- | ------------------ | - | ------ | ------------------------- |  | - | ------------ | - |  | ------ | ----- | - | ---------- | - | ------ | - |  | - | ------- | - |  | - | ------ | - |  | - | ------- | -
|                                               |      | Commercial Banking    |       
|                                               | SMBC |                       |        | Others(2) |                    |   | Total  |                          
|                                               |      | WholesaleBanking Unit |        |           | RetailBanking Unit |   |        | InternationalBanking Unit |  |   | TreasuryUnit |   |  | Others |       |   | SMBC Total |   |        |   |  |   |         |  
|                                               |      | (In billions)         |       
|Gross profit                                   |      | ¥                     | 555.4  |           |                    | ¥ | 386.8  |                           |  | ¥ | 345.3        |   |  | ¥      | 354.0 |   |            | ¥ | (7.2   | ) |  | ¥ | 1,634.3 |   |  | ¥ | 289.4  |   |  | ¥ | 1,923.7 |  
|Net interest income                            |      |                       | 315.8  |           |                    |   | 313.2  |                           |  |   | 227.8        |   |  |        | 212.4 |   |            |   | 52.2   |   |  |   | 1,121.4 |   |  |   | 171.3  |   |  |   | 1,292.7 |  
|Net non-interest income                        |      |                       | 239.6  |           |                    |   | 73.6   |                           |  |   | 117.5        |   |  |        | 141.6 |   |            |   | (59.4  | ) |  |   | 512.9   |   |  |   | 118.1  |   |  |   | 631.0   |  
|General and administrative expenses and others |      |                       | (206.8 | )         |                    |   | (350.1 | )                         |  |   | (106.6       | ) |  |        | (25.9 | ) |            |   | (101.8 | ) |  |   | (791.2  | ) |  |   | (203.0 | ) |  |   | (994.2  | )
|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|Consolidated net business profit(1)(7)         |      | ¥                     | 348.6  |           |                    | ¥ | 36.7   |                           |  | ¥ | 238.7        |   |  | ¥      | 328.1 |   |            | ¥ | (109.0 | ) |  | ¥ | 843.1   |   |  | ¥ | 86.4   |   |  | ¥ | 929.5   |  
|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  



|                                               |  |               |       |   |            |   |       |                        |  |   |                        |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|---------------------------------------------- |  | ------------- | ----- | - | ---------- | - | ----- | ---------------------- |  | - | ---------------------- | - |  | -------- | ----- | - | ------------------ | - | ------ | --------- |  | - | ---------------------- | - |  | -------- | ------ | - |  | - | ----- | - |  | - | ------ | - |  | - | ----- | - |  | - | -------- | -
|                                               |  | Leasing       |       |   | Securities |   |       | Consumer Finance       |  |   | Others                 |   |  | Total    |      
|                                               |  | SMFL(3)       |       |   | Total(4)   |   |       | SMBCNikkoSecurities(5) |  |   | SMBC Friend Securities |   |  | Total(4) |       |   | SumitomoMitsuiCard |   |        | Cedyna(6) |  |   | SMBCConsumerFinance(3) |   |  | Total(4) |        |   |  |   |       |   | 
|                                               |  | (In billions) |      
|Gross profit                                   |  | ¥             | 137.0 |   |            | ¥ | 149.3 |                        |  | ¥ | 346.3                  |   |  | ¥        | 50.4  |   |                    | ¥ | 393.9  |           |  | ¥ | 196.4                  |   |  | ¥        | 164.2  |   |  | ¥ | 215.5 |   |  | ¥ | 576.9  |   |  | ¥ | (63.4 | ) |  | ¥ | 2,980.4  |  
|Net interest income                            |  |               | 19.3  |   |            |   | 24.4  |                        |  |   | 1.5                    |   |  |          | 1.2   |   |                    |   | 3.8    |           |  |   | 13.6                   |   |  |          | 25.9   |   |  |   | 149.0 |   |  |   | 178.7  |   |  |   | 5.6   |   |  |   | 1,505.2  |  
|Net non-interest income                        |  |               | 117.7 |   |            |   | 124.9 |                        |  |   | 344.8                  |   |  |          | 49.2  |   |                    |   | 390.1  |           |  |   | 182.8                  |   |  |          | 138.3  |   |  |   | 66.5  |   |  |   | 398.2  |   |  |   | (69.0 | ) |  |   | 1,475.2  |  
|General and administrative expenses and others |  |               | (56.5 | ) |            |   | (60.8 | )                      |  |   | (248.7                 | ) |  |          | (40.0 | ) |                    |   | (301.9 | )         |  |   | (146.0                 | ) |  |          | (121.7 | ) |  |   | (96.1 | ) |  |   | (381.9 | ) |  |   | 68.9  |   |  |   | (1,669.9 | )
|                                               |  |               |       |   |            |   |       |                        |  |   |                        |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|Consolidated net business profit(1)(7)         |  | ¥             | 80.5  |   |            | ¥ | 88.5  |                        |  | ¥ | 97.6                   |   |  | ¥        | 10.4  |   |                    | ¥ | 92.0   |           |  | ¥ | 50.4                   |   |  | ¥        | 42.5   |   |  | ¥ | 119.4 |   |  | ¥ | 195.0  |   |  | ¥ | 5.5   |   |  | ¥ | 1,310.5  |  
|                                               |  |               |       |   |            |   |       |                        |  |   |                        |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  



F-35



---

##### Table of Contents

For the fiscal year ended March 31, 2014:



|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|---------------------------------------------- | ---- | --------------------- | ------ | --------- | ------------------ | - | ------ | ------------------------- |  | - | ------------ | - |  | ------ | ----- | - | ---------- | - | ------ | - |  | - | ------- | - |  | - | ------ | - |  | - | ------- | -
|                                               |      | Commercial Banking    |       
|                                               | SMBC |                       |        | Others(2) |                    |   | Total  |                          
|                                               |      | WholesaleBanking Unit |        |           | RetailBanking Unit |   |        | InternationalBanking Unit |  |   | TreasuryUnit |   |  | Others |       |   | SMBC Total |   |        |   |  |   |         |  
|                                               |      | (In billions)         |       
|Gross profit                                   |      | ¥                     | 558.5  |           |                    | ¥ | 405.4  |                           |  | ¥ | 296.0        |   |  | ¥      | 325.5 |   |            | ¥ | (27.3  | ) |  | ¥ | 1,558.1 |   |  | ¥ | 249.1  |   |  | ¥ | 1,807.2 |  
|Net interest income                            |      |                       | 323.4  |           |                    |   | 321.3  |                           |  |   | 174.6        |   |  |        | 225.2 |   |            |   | 20.4   |   |  |   | 1,064.9 |   |  |   | 171.1  |   |  |   | 1,236.0 |  
|Net non-interest income                        |      |                       | 235.1  |           |                    |   | 84.1   |                           |  |   | 121.4        |   |  |        | 100.3 |   |            |   | (47.7  | ) |  |   | 493.2   |   |  |   | 78.0   |   |  |   | 571.2   |  
|General and administrative expenses and others |      |                       | (200.7 | )         |                    |   | (336.4 | )                         |  |   | (89.1        | ) |  |        | (22.9 | ) |            |   | (96.6  | ) |  |   | (745.7  | ) |  |   | (195.6 | ) |  |   | (941.3  | )
|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  
|Consolidated net business profit(1)(7)         |      | ¥                     | 357.8  |           |                    | ¥ | 69.0   |                           |  | ¥ | 206.9        |   |  | ¥      | 302.6 |   |            | ¥ | (123.9 | ) |  | ¥ | 812.4   |   |  | ¥ | 53.5   |   |  | ¥ | 865.9   |  
|                                               |      |                       |        |           |                    |   |        |                           |  |   |              |   |  |        |       |   |            |   |        |   |  |   |         |   |  |   |        |   |  |   |         |  



|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|---------------------------------------------- |  | ------------- | ----- | - | ---------- | - | ----- | ---------------------- |  | - | -------------------- | - |  | -------- | ----- | - | ------------------ | - | ------ | --------- |  | - | ---------------------- | - |  | -------- | ------ | - |  | - | ----- | - |  | - | ------ | - |  | - | ----- | - |  | - | -------- | -
|                                               |  | Leasing       |       |   | Securities |   |       | Consumer Finance       |  |   | Others               |   |  | Total    |      
|                                               |  | SMFL(3)       |       |   | Total(4)   |   |       | SMBCNikkoSecurities(5) |  |   | SMBCFriendSecurities |   |  | Total(4) |       |   | SumitomoMitsuiCard |   |        | Cedyna(6) |  |   | SMBCConsumerFinance(3) |   |  | Total(4) |        |   |  |   |       |   | 
|                                               |  | (In billions) |      
|Gross profit                                   |  | ¥             | 127.9 |   |            | ¥ | 138.4 |                        |  | ¥ | 339.3                |   |  | ¥        | 58.2  |   |                    | ¥ | 397.8  |           |  | ¥ | 189.9                  |   |  | ¥        | 167.6  |   |  | ¥ | 181.8 |   |  | ¥ | 540.1  |   |  | ¥ | 14.7  |   |  | ¥ | 2,898.2  |  
|Net interest income                            |  |               | 29.1  |   |            |   | 35.2  |                        |  |   | 0.2                  |   |  |          | 1.4   |   |                    |   | 2.7    |           |  |   | 13.9                   |   |  |          | 28.3   |   |  |   | 124.4 |   |  |   | 156.6  |   |  |   | 53.7  |   |  |   | 1,484.2  |  
|Net non-interest income                        |  |               | 98.8  |   |            |   | 103.2 |                        |  |   | 339.1                |   |  |          | 56.8  |   |                    |   | 395.1  |           |  |   | 176.0                  |   |  |          | 139.3  |   |  |   | 57.4  |   |  |   | 383.5  |   |  |   | (39.0 | ) |  |   | 1,414.0  |  
|General and administrative expenses and others |  |               | (52.9 | ) |            |   | (54.4 | )                      |  |   | (235.3               | ) |  |          | (42.5 | ) |                    |   | (292.0 | )         |  |   | (139.6                 | ) |  |          | (123.6 | ) |  |   | (73.0 | ) |  |   | (352.8 | ) |  |   | 80.8  |   |  |   | (1,559.7 | )
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  
|Consolidated net business profit(1)(7)         |  | ¥             | 75.0  |   |            | ¥ | 84.0  |                        |  | ¥ | 104.0                |   |  | ¥        | 15.7  |   |                    | ¥ | 105.8  |           |  | ¥ | 50.3                   |   |  | ¥        | 44.0   |   |  | ¥ | 108.8 |   |  | ¥ | 187.3  |   |  | ¥ | 95.5  |   |  | ¥ | 1,338.5  |  
|                                               |  |               |       |   |            |   |       |                        |  |   |                      |   |  |          |       |   |                    |   |        |           |  |   |                        |   |  |          |        |   |  |   |       |   |  |   |        |   |  |   |       |   |  |   |          |  



|(1) | Consolidated net business profit = Gross profit (*) - General and administrative expenses + share of profit or loss of equity-method associates.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------

(*)Gross profit = (Interest income - Interest expenses) + Trust fees + (Fee and commission income - Fee and
commission expenses) + (Trading income - Trading losses) + (Other operating income - Other operating expenses).

|(2) | Others in Commercial Banking consist of SMFGs banking subsidiaries except SMBC, such as SMBC Trust Bank, KUBC, The Minato Bank, SMBC Europe and SMBC (China).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The figures represent consolidated figures of respective companies.
|--- | -------------------------------------------------------------------

|(4) | Total under each business segment, except Commercial Banking, includes the aggregation of the results from the operating units that were not separately identified.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The figures are the sum of SMBC Nikko Securities (nonconsolidated basis) and its overseas securities subsidiaries.
|--- | ------------------------------------------------------------------------------------------------------------------

|(6) | The figures represent Cedynas consolidated figures excluding insignificant subsidiaries.
|--- | -----------------------------------------------------------------------------------------

|(7) | The SMFG Groups total credit cost (reversal) for the fiscal years ended March 31, 2016, 2015 and 2014 were ¥102.8 billion, ¥7.8 billion and ¥(49.1)
billion, respectively, of which ¥10.3 billion, ¥(68.3) billion and ¥(116.5) billion were for Commercial Banking, ¥(1.5) billion, ¥(6.1) billion and ¥(0.9) billion were for Leasing, ¥(0.2) billion, ¥(0.2) billion
and nil were for Securities and ¥91.4 billion, ¥78.8 billion and ¥66.8 billion were for Consumer Finance. Total credit costs include gains on recoveries of written-off claims. The SMFG Groups total credit costs (reversal) are
not included in the consolidated net business profit.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-36



---

##### Table of Contents

Reconciliation of Segmental Results of Operations to Consolidated Income Statement

The figures provided in the tables above are calculated by aggregating the figures used for management reporting under Japanese GAAP for
each segment. The total amount of consolidated net business profit that is calculated by each segment based on the internal managerial data is reconciled to profit before tax reported in the consolidated financial statements under IFRS as shown in
the following table:



|                                                            |  |                                     |         |   |      |   |         |      |  |   |         |  
|----------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                            |  | For the fiscal year ended March 31, |        
|                                                            |  | 2016                                |         |   | 2015 |   |         | 2014 | 
|                                                            |  | (In billions)                       |        
|Consolidated net business profit                            |  | ¥                                   | 1,142.9 |   |      | ¥ | 1,310.5 |      |  | ¥ | 1,338.5 |  
|Differences between management reporting and Japanese GAAP: |  |                                     |         |   |      |   |         |      |  |   |         |  
|Total credit costs(1)                                       |  |                                     | (102.8  | ) |      |   | (7.8    | )    |  |   | 49.1    |  
|Gains on equity instruments                                 |  |                                     | 69.0    |   |      |   | 66.7    |      |  |   | 89.2    |  
|Others                                                      |  |                                     | (128.9  | ) |      |   | (60.0   | )    |  |   | (54.1   | )
|                                                            |  |                                     |         |   |      |   |         |      |  |   |         |  
|Profit before tax under Japanese GAAP                       |  |                                     | 980.2   |   |      |   | 1,309.4 |      |  |   | 1,422.7 |  
|                                                            |  |                                     |         |   |      |   |         |      |  |   |         |  
|Differences between IFRS and Japanese GAAP:                 |  |                                     |         |   |      |   |         |      |  |   |         |  
|Scope of consolidation                                      |  |                                     | (3.1    | ) |      |   | (3.9    | )    |  |   | (10.8   | )
|Derivative financial instruments                            |  |                                     | 173.1   |   |      |   | (84.5   | )    |  |   | (70.8   | )
|Investment securities                                       |  |                                     | 56.6    |   |      |   | 10.2    |      |  |   | 6.2     |  
|Loans and advances                                          |  |                                     | (35.2   | ) |      |   | (116.3  | )    |  |   | (36.7   | )
|Investments in associates and joint ventures                |  |                                     | 53.4    |   |      |   | 23.6    |      |  |   | 4.9     |  
|Property, plant and equipment                               |  |                                     | 1.3     |   |      |   | (1.0    | )    |  |   | 3.1     |  
|Lease accounting                                            |  |                                     | (1.5    | ) |      |   | (2.0    | )    |  |   | (3.1    | )
|Defined benefit plans                                       |  |                                     | 6.6     |   |      |   | 3.1     |      |  |   | 19.8    |  
|Foreign currency translation                                |  |                                     | 61.7    |   |      |   | (23.1   | )    |  |   | (45.9   | )
|Classification of equity and liability                      |  |                                     | 5.4     |   |      |   |        |      |  |   |        |  
|Others                                                      |  |                                     | 27.2    |   |      |   | 17.4    |      |  |   | 16.9    |  
|                                                            |  |                                     |         |   |      |   |         |      |  |   |         |  
|Profit before tax under IFRS                                |  | ¥                                   | 1,325.7 |   |      | ¥ | 1,132.9 |      |  | ¥ | 1,306.3 |  
|                                                            |  |                                     |         |   |      |   |         |      |  |   |         |  



|(1) | A positive figure indicates net reversal of credit costs.
|--- | ---------------------------------------------------------



F-37



---

##### Table of Contents

Information about Geographical Areas

The following table shows the total operating income in accordance with IFRS by the main geographical areas. The SMFG Groups
services are provided to domestic and foreign clients on a worldwide basis. These include transactions where SMBCs branches in Japan may deal with customers located in foreign countries and where SMBCs overseas branches may provide
services to Japanese companies.

To identify income attributed to each geographical area for the purposes of this disclosure,
they are aggregated based on the geographical location of the booking entity, with the assumption that transactions booked in booking entities are deemed to have occurred in their respective geographical areas.



|                          |  |                                     |           |  |      |   |           |      |  |   |           | 
|------------------------- |  | ----------------------------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- | 
|                          |  | For the fiscal year ended March 31, |          
|                          |  | 2016                                |           |  | 2015 |   |           | 2014 | 
|                          |  | (In millions)                       |          
|Domestic(1)               |  |                                     |           |  |      |   |           |      |  |   |           | 
|Japan                     |  | ¥                                   | 2,840,058 |  |      | ¥ | 2,536,539 |      |  | ¥ | 2,525,836 | 
|                          |  |                                     |           |  |      |   |           |      |  |   |           | 
|Total domestic            |  |                                     | 2,840,058 |  |      |   | 2,536,539 |      |  |   | 2,525,836 | 
|                          |  |                                     |           |  |      |   |           |      |  |   |           | 
|Foreign(1)(2):            |  |                                     |           |  |      |   |           |      |  |   |           | 
|Americas                  |  |                                     | 196,399   |  |      |   | 172,050   |      |  |   | 187,435   | 
|Europe and Middle East    |  |                                     | 352,232   |  |      |   | 350,105   |      |  |   | 280,187   | 
|Asia and Oceania          |  |                                     | 299,537   |  |      |   | 273,739   |      |  |   | 230,895   | 
|                          |  |                                     |           |  |      |   |           |      |  |   |           | 
|Total foreign             |  |                                     | 848,168   |  |      |   | 795,894   |      |  |   | 698,517   | 
|                          |  |                                     |           |  |      |   |           |      |  |   |           | 
|Total operating income(3) |  | ¥                                   | 3,688,226 |  |      | ¥ | 3,332,433 |      |  | ¥ | 3,224,353 | 
|                          |  |                                     |           |  |      |   |           |      |  |   |           | 



|(1) | The geographical segmentation is determined based on the degrees of the following factors: geographic proximity, similarity of economic activities and relationship of
business activities among regions.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Americas includes the United States, Brazil, Canada and others; Europe and Middle East include the United Kingdom, Germany, France and others; Asia and Oceania include
China, Singapore, Australia and others except Japan.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Total operating income comprises net interest income, net fee and commission income, net trading income, net income from financial assets at fair value through profit
or loss, net investment income and other income.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5 | CASH AND DEPOSITS WITH BANKS
|- | ----------------------------

Cash and deposits with banks at March 31, 2016 and 2015 consisted of the following:



|                                   |  |               |            |  |      |   |            | 
|---------------------------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                                   |  | At March 31,  |           
|                                   |  | 2016          |            |  | 2015 |  
|                                   |  | (In millions) |           
|Cash                               |  | ¥             | 965,189    |  |      | ¥ | 1,173,880  | 
|Deposits with banks                |  |               | 42,179,465 |  |      |   | 38,938,903 | 
|                                   |  |               |            |  |      |   |            | 
|Total cash and deposits with banks |  | ¥             | 43,144,654 |  |      | ¥ | 40,112,783 | 
|                                   |  |               |            |  |      |   |            | 

The reconciliation of cash and cash equivalents used for the purposes of the consolidated statement of
cash flows at March 31, 2016, 2015 and 2014 is shown as follows:



|                                                               |  |               |            |   |      |   |            |      |  |   |            |  
|-------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | -
|                                                               |  | At March 31,  |           
|                                                               |  | 2016          |            |   | 2015 |   |            | 2014 | 
|                                                               |  | (In millions) |           
|Cash and deposits with banks                                   |  | ¥             | 43,144,654 |   |      | ¥ | 40,112,783 |      |  | ¥ | 33,208,724 |  
|Less: term deposits with original maturities over three months |  |               | (597,960   | ) |      |   | (581,743   | )    |  |   | (609,503   | )
|Less: cash segregated as deposits and others                   |  |               | (419,728   | ) |      |   | (422,283   | )    |  |   | (400,976   | )
|                                                               |  |               |            |   |      |   |            |      |  |   |            |  
|Cash and cash equivalents                                      |  | ¥             | 42,126,966 |   |      | ¥ | 39,108,757 |      |  | ¥ | 32,198,245 |  
|                                                               |  |               |            |   |      |   |            |      |  |   |            |  



F-38



---

##### Table of Contents

Private depository institutions in Japan are required to maintain certain minimum reserve
funds with the Bank of Japan, based on average deposit balances and certain other factors. There are similar reserve deposit requirements for the SMFG Groups foreign offices engaged in banking businesses in foreign countries. At March 31,
2016, 2015 and 2014, the reserves at the central banks, including those minimum reserve funds, which were included in cash and cash equivalents, amounted to ¥36,020,569 million, ¥31,593,178 million and ¥25,737,152 million, respectively.



|6 | TRADING ASSETS
|- | --------------

Trading
assets at March 31, 2016 and 2015 consisted of the following:



|                     |  |               |           |  |      |   |           | 
|-------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                     |  | At March 31,  |          
|                     |  | 2016          |           |  | 2015 |  
|                     |  | (In millions) |          
|Debt instruments     |  | ¥             | 3,174,309 |  |      | ¥ | 2,618,593 | 
|Equity instruments   |  |               | 440,783   |  |      |   | 624,592   | 
|                     |  |               |           |  |      |   |           | 
|Total trading assets |  | ¥             | 3,615,092 |  |      | ¥ | 3,243,185 | 
|                     |  |               |           |  |      |   |           | 

Trading debt instruments mainly consist of Japanese government bonds. Trading equity instruments mainly
consist of publicly traded Japanese stocks and investment funds.



|7 | DERIVATIVE FINANCIAL INSTRUMENTS
|- | --------------------------------

Derivative financial instruments include futures, forwards, swaps, options and other types of derivative contracts, which are transactions listed on exchanges or over-the-counter (OTC)
transactions. In the normal course of business, the SMFG Group enters into a variety of derivatives for trading and risk management purposes. The SMFG Group uses derivatives for trading activities, which include facilitating customer transactions,
market-making and arbitrage activities. The SMFG Group also uses derivatives to reduce its exposures to market and credit risks as part of its asset and liability management, but does not apply hedge accounting.

Derivatives are financial instruments that derive their value from the price of underlying items such as interest rates, foreign exchange
rates, equities, bonds, commodities, credit spreads and other indices. The SMFG Groups derivative financial instruments mainly consist of interest rate derivatives and currency derivatives. Interest rate derivatives include interest rate
swaps, interest rate futures and interest rate swaptions. Currency derivatives include foreign exchange forward transactions, currency swaps and currency options.



F-39



---

##### Table of Contents

The tables below represent the derivative financial instruments by type and purpose of
derivatives at March 31, 2016 and 2015.



|                                       |  |                   |             |  |                    |   |           |             |  |   |                  |  |  |        |            |  |             |   |           |  |  |   |           | 
|-------------------------------------- |  | ----------------- | ----------- |  | ------------------ | - | --------- | ----------- |  | - | ---------------- |  |  | ------ | ---------- |  | ----------- | - | --------- |  |  | - | --------- | 
|                                       |  | At March 31, 2016 |            
|                                       |  | Trading           |             |  | Risk
Management(1) |  
|                                       |  | Notional amounts  |             |  | Assets             |   |           | Liabilities |  |   | Notional amounts |  |  | Assets |            |  | Liabilities |  
|                                       |  | (In millions)     |            
|Interest rate derivatives              |  | ¥                 | 624,009,304 |  |                    | ¥ | 2,507,089 |             |  | ¥ | 2,516,295        |  |  | ¥      | 49,612,909 |  |             | ¥ | 820,725   |  |  | ¥ | 760,503   | 
|Futures                                |  |                   | 126,458,648 |  |                    |   | 92,629    |             |  |   | 97,929           |  |  |        | 935,860    |  |             |   | 176       |  |  |   | 854       | 
|Listed Options                         |  |                   | 34,227,948  |  |                    |   | 6,632     |             |  |   | 380              |  |  |        |           |  |             |   |          |  |  |   |          | 
|Forwards                               |  |                   | 15,838,272  |  |                    |   | 164       |             |  |   | 375              |  |  |        |           |  |             |   |          |  |  |   |          | 
|Swaps                                  |  |                   | 396,311,398 |  |                    |   | 2,294,931 |             |  |   | 2,255,616        |  |  |        | 48,478,874 |  |             |   | 816,199   |  |  |   | 759,635   | 
|OTC Options                            |  |                   | 51,173,038  |  |                    |   | 112,733   |             |  |   | 161,995          |  |  |        | 198,175    |  |             |   | 4,350     |  |  |   | 14        | 
|Currency derivatives                   |  |                   | 97,093,252  |  |                    |   | 1,615,618 |             |  |   | 1,379,134        |  |  |        | 10,203,718 |  |             |   | 283,651   |  |  |   | 335,457   | 
|Futures                                |  |                   | 691         |  |                    |   | 17        |             |  |   |                 |  |  |        |           |  |             |   |          |  |  |   |          | 
|Listed Options                         |  |                   |            |  |                    |   |          |             |  |   |                 |  |  |        |           |  |             |   |          |  |  |   |          | 
|Forwards                               |  |                   | 56,831,767  |  |                    |   | 932,937   |             |  |   | 926,924          |  |  |        | 502,194    |  |             |   | 12,007    |  |  |   | 2,910     | 
|Swaps                                  |  |                   | 33,597,294  |  |                    |   | 553,104   |             |  |   | 297,358          |  |  |        | 9,701,524  |  |             |   | 271,644   |  |  |   | 332,547   | 
|OTC Options                            |  |                   | 6,663,500   |  |                    |   | 129,560   |             |  |   | 154,852          |  |  |        |           |  |             |   |          |  |  |   |          | 
|Equity derivatives                     |  |                   | 1,971,463   |  |                    |   | 32,536    |             |  |   | 60,122           |  |  |        | 9,929      |  |             |   | 352       |  |  |   | 40        | 
|Futures                                |  |                   | 1,089,827   |  |                    |   | 3,469     |             |  |   | 7,036            |  |  |        |           |  |             |   |          |  |  |   |          | 
|Listed Options                         |  |                   | 357,609     |  |                    |   | 8,523     |             |  |   | 19,476           |  |  |        |           |  |             |   |          |  |  |   |          | 
|Forwards                               |  |                   | 11,960      |  |                    |   | 502       |             |  |   | 17               |  |  |        |           |  |             |   |          |  |  |   |          | 
|Swaps                                  |  |                   | 66,213      |  |                    |   | 78        |             |  |   | 12,696           |  |  |        | 9,929      |  |             |   | 352       |  |  |   | 40        | 
|OTC Options                            |  |                   | 445,854     |  |                    |   | 19,964    |             |  |   | 20,897           |  |  |        |           |  |             |   |          |  |  |   |          | 
|Commodity derivatives                  |  |                   | 215,945     |  |                    |   | 24,515    |             |  |   | 23,758           |  |  |        |           |  |             |   |          |  |  |   |          | 
|Futures                                |  |                   | 15,300      |  |                    |   | 678       |             |  |   | 891              |  |  |        |           |  |             |   |          |  |  |   |          | 
|Listed Options                         |  |                   |            |  |                    |   |          |             |  |   |                 |  |  |        |           |  |             |   |          |  |  |   |          | 
|Forwards                               |  |                   |            |  |                    |   |          |             |  |   |                 |  |  |        |           |  |             |   |          |  |  |   |          | 
|Swaps                                  |  |                   | 166,312     |  |                    |   | 23,136    |             |  |   | 21,227           |  |  |        |           |  |             |   |          |  |  |   |          | 
|OTC Options                            |  |                   | 34,333      |  |                    |   | 701       |             |  |   | 1,640            |  |  |        |           |  |             |   |          |  |  |   |          | 
|Credit derivatives                     |  |                   | 1,447,243   |  |                    |   | 6,339     |             |  |   | 10,774           |  |  |        |           |  |             |   |          |  |  |   |          | 
|                                       |  |                   |             |  |                    |   |           |             |  |   |                  |  |  |        |            |  |             |   |           |  |  |   |           | 
|Total derivative financial instruments |  | ¥                 | 724,737,207 |  |                    | ¥ | 4,186,097 |             |  | ¥ | 3,990,083        |  |  | ¥      | 59,826,556 |  |             | ¥ | 1,104,728 |  |  | ¥ | 1,096,000 | 
|                                       |  |                   |             |  |                    |   |           |             |  |   |                  |  |  |        |            |  |             |   |           |  |  |   |           | 



F-40



---

##### Table of Contents

|                                       |  |                   |             |  |                    |   |           |             |  |   |                  |  |  |        |            |  |             |   |         |  |  |   |           | 
|-------------------------------------- |  | ----------------- | ----------- |  | ------------------ | - | --------- | ----------- |  | - | ---------------- |  |  | ------ | ---------- |  | ----------- | - | ------- |  |  | - | --------- | 
|                                       |  | At March 31, 2015 |            
|                                       |  | Trading           |             |  | Risk
Management(1) |  
|                                       |  | Notional amounts  |             |  | Assets             |   |           | Liabilities |  |   | Notional amounts |  |  | Assets |            |  | Liabilities |  
|                                       |  | (In millions)     |            
|Interest rate derivatives              |  | ¥                 | 687,138,214 |  |                    | ¥ | 3,619,256 |             |  | ¥ | 3,692,925        |  |  | ¥      | 58,945,067 |  |             | ¥ | 758,978 |  |  | ¥ | 722,234   | 
|Futures                                |  |                   | 149,155,836 |  |                    |   | 79,448    |             |  |   | 91,667           |  |  |        | 10,731,918 |  |             |   |        |  |  |   | 5,071     | 
|Listed Options                         |  |                   | 36,729,312  |  |                    |   | 7,097     |             |  |   | 151              |  |  |        |           |  |             |   |        |  |  |   |          | 
|Forwards                               |  |                   | 13,617,468  |  |                    |   | 3         |             |  |   | 139              |  |  |        |           |  |             |   |        |  |  |   |          | 
|Swaps                                  |  |                   | 448,821,964 |  |                    |   | 3,446,290 |             |  |   | 3,490,754        |  |  |        | 48,070,491 |  |             |   | 758,745 |  |  |   | 717,017   | 
|OTC Options                            |  |                   | 38,813,634  |  |                    |   | 86,418    |             |  |   | 110,214          |  |  |        | 142,658    |  |             |   | 233     |  |  |   | 146       | 
|Currency derivatives                   |  |                   | 95,450,773  |  |                    |   | 1,840,958 |             |  |   | 1,739,303        |  |  |        | 7,661,419  |  |             |   | 173,920 |  |  |   | 491,857   | 
|Futures                                |  |                   | 81,429      |  |                    |   | 181       |             |  |   |                 |  |  |        |           |  |             |   |        |  |  |   |          | 
|Listed Options                         |  |                   |            |  |                    |   |          |             |  |   |                 |  |  |        |           |  |             |   |        |  |  |   |          | 
|Forwards                               |  |                   | 62,599,181  |  |                    |   | 1,266,650 |             |  |   | 1,399,095        |  |  |        | 822,103    |  |             |   | 12,714  |  |  |   | 8,327     | 
|Swaps                                  |  |                   | 26,890,783  |  |                    |   | 444,330   |             |  |   | 150,459          |  |  |        | 6,839,316  |  |             |   | 161,206 |  |  |   | 483,530   | 
|OTC Options                            |  |                   | 5,879,380   |  |                    |   | 129,797   |             |  |   | 189,749          |  |  |        |           |  |             |   |        |  |  |   |          | 
|Equity derivatives                     |  |                   | 2,139,981   |  |                    |   | 44,862    |             |  |   | 53,864           |  |  |        | 184,354    |  |             |   | 1,687   |  |  |   | 15,010    | 
|Futures                                |  |                   | 1,274,309   |  |                    |   | 7,649     |             |  |   | 12,272           |  |  |        | 118,376    |  |             |   | 1,687   |  |  |   |          | 
|Listed Options                         |  |                   | 323,588     |  |                    |   | 11,546    |             |  |   | 16,412           |  |  |        |           |  |             |   |        |  |  |   |          | 
|Forwards                               |  |                   | 50,198      |  |                    |   | 908       |             |  |   | 281              |  |  |        |           |  |             |   |        |  |  |   |          | 
|Swaps                                  |  |                   | 32,130      |  |                    |   | 67        |             |  |   | 1,341            |  |  |        | 65,978     |  |             |   |        |  |  |   | 15,010    | 
|OTC Options                            |  |                   | 459,756     |  |                    |   | 24,692    |             |  |   | 23,558           |  |  |        |           |  |             |   |        |  |  |   |          | 
|Commodity derivatives                  |  |                   | 247,769     |  |                    |   | 19,580    |             |  |   | 19,465           |  |  |        |           |  |             |   |        |  |  |   |          | 
|Futures                                |  |                   | 29,706      |  |                    |   | 1,829     |             |  |   | 2,466            |  |  |        |           |  |             |   |        |  |  |   |          | 
|Listed Options                         |  |                   |            |  |                    |   |          |             |  |   |                 |  |  |        |           |  |             |   |        |  |  |   |          | 
|Forwards                               |  |                   |            |  |                    |   |          |             |  |   |                 |  |  |        |           |  |             |   |        |  |  |   |          | 
|Swaps                                  |  |                   | 193,438     |  |                    |   | 17,481    |             |  |   | 16,128           |  |  |        |           |  |             |   |        |  |  |   |          | 
|OTC Options                            |  |                   | 24,625      |  |                    |   | 270       |             |  |   | 871              |  |  |        |           |  |             |   |        |  |  |   |          | 
|Credit derivatives                     |  |                   | 1,271,457   |  |                    |   | 11,962    |             |  |   | 5,129            |  |  |        |           |  |             |   |        |  |  |   |          | 
|                                       |  |                   |             |  |                    |   |           |             |  |   |                  |  |  |        |            |  |             |   |         |  |  |   |           | 
|Total derivative financial instruments |  | ¥                 | 786,248,194 |  |                    | ¥ | 5,536,618 |             |  | ¥ | 5,510,686        |  |  | ¥      | 66,790,840 |  |             | ¥ | 934,585 |  |  | ¥ | 1,229,101 | 
|                                       |  |                   |             |  |                    |   |           |             |  |   |                  |  |  |        |            |  |             |   |         |  |  |   |           | 



|(1) | Derivative financial instruments categorized as Risk Management are used for economic hedging, such as managing the exposure to changes in fair value of the
loan portfolio, and are identified as hedges under Japanese GAAP, but the SMFG Group does not apply hedge accounting under IFRS.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Credit derivatives

The SMFG Group enters into credit derivatives to
manage the risk of its commercial banking credit portfolio containing loans by hedging, as well as diversifying the credit exposure in the portfolio, and to undertake credit loss protection transactions based on the needs from customers as financial
intermediation. The tables below provide information regarding the notional amounts and the fair value of credit derivatives by purpose at March 31, 2016 and 2015.



|                                                |  |                      |         |  |                 |   |     |             |  |   |                 |  |  |        |         |  |             |   |       |  |  |   |       | 
|----------------------------------------------- |  | -------------------- | ------- |  | --------------- | - | --- | ----------- |  | - | --------------- |  |  | ------ | ------- |  | ----------- | - | ----- |  |  | - | ----- | 
|                                                |  | At March 31, 2016    |        
|                                                |  | Protection purchased |         |  | Protection sold |  
|                                                |  | Notionalamounts      |         |  | Assets          |   |     | Liabilities |  |   | Notionalamounts |  |  | Assets |         |  | Liabilities |  
|                                                |  | (In millions)        |        
|Managing the SMFG Groups credit risk portfolio |  | ¥                    | 497,447 |  |                 | ¥ | 600 |             |  | ¥ | 3,540           |  |  | ¥      | 631,891 |  |             | ¥ | 2,686 |  |  | ¥ | 4,576 | 
|Facilitating client transactions                |  |                      | 132,275 |  |                 |   | 375 |             |  |   | 1,756           |  |  |        | 185,630 |  |             |   | 2,678 |  |  |   | 902   | 
|                                                |  |                      |         |  |                 |   |     |             |  |   |                 |  |  |        |         |  |             |   |       |  |  |   |       | 
|Total                                           |  | ¥                    | 629,722 |  |                 | ¥ | 975 |             |  | ¥ | 5,296           |  |  | ¥      | 817,521 |  |             | ¥ | 5,364 |  |  | ¥ | 5,478 | 
|                                                |  |                      |         |  |                 |   |     |             |  |   |                 |  |  |        |         |  |             |   |       |  |  |   |       | 



F-41



---

##### Table of Contents

|                                                |  |                      |         |  |                 |   |     |             |  |   |                 |  |  |        |         |  |             |   |        |  |  |   |     | 
|----------------------------------------------- |  | -------------------- | ------- |  | --------------- | - | --- | ----------- |  | - | --------------- |  |  | ------ | ------- |  | ----------- | - | ------ |  |  | - | --- | 
|                                                |  | At March 31, 2015    |        
|                                                |  | Protection purchased |         |  | Protection sold |  
|                                                |  | Notionalamounts      |         |  | Assets          |   |     | Liabilities |  |   | Notionalamounts |  |  | Assets |         |  | Liabilities |  
|                                                |  | (In millions)        |        
|Managing the SMFG Groups credit risk portfolio |  | ¥                    | 414,093 |  |                 | ¥ | 60  |             |  | ¥ | 3,387           |  |  | ¥      | 519,772 |  |             | ¥ | 7,732  |  |  | ¥ | 62  | 
|Facilitating client transactions                |  |                      | 115,759 |  |                 |   | 117 |             |  |   | 1,508           |  |  |        | 221,833 |  |             |   | 4,053  |  |  |   | 172 | 
|                                                |  |                      |         |  |                 |   |     |             |  |   |                 |  |  |        |         |  |             |   |        |  |  |   |     | 
|Total                                           |  | ¥                    | 529,852 |  |                 | ¥ | 177 |             |  | ¥ | 4,895           |  |  | ¥      | 741,605 |  |             | ¥ | 11,785 |  |  | ¥ | 234 | 
|                                                |  |                      |         |  |                 |   |     |             |  |   |                 |  |  |        |         |  |             |   |        |  |  |   |     | 

The following table summarizes the notional amounts of the SMFG Groups credit derivative portfolio
by type of counterparty at March 31, 2016 and 2015.



|                                             |  |                     |         |  |                   |   |         |                     |  |   |                 |  |  |   |         | 
|-------------------------------------------- |  | ------------------- | ------- |  | ----------------- | - | ------- | ------------------- |  | - | --------------- |  |  | - | ------- | 
|                                             |  | At March 31, 2016   |         |  | At March 31, 2015 |  
|                                             |  | Protectionpurchased |         |  | Protectionsold    |   |         | Protectionpurchased |  |   | Protection sold | 
|                                             |  | (In millions)       |        
|Banks and broker-dealers                     |  | ¥                   | 629,722 |  |                   | ¥ | 817,521 |                     |  | ¥ | 499,569         |  |  | ¥ | 741,605 | 
|Insurance and other financial guaranty firms |  |                     |        |  |                   |   |        |                     |  |   | 30,283          |  |  |   |        | 
|                                             |  |                     |         |  |                   |   |         |                     |  |   |                 |  |  |   |         | 
|Total                                        |  | ¥                   | 629,722 |  |                   | ¥ | 817,521 |                     |  | ¥ | 529,852         |  |  | ¥ | 741,605 | 
|                                             |  |                     |         |  |                   |   |         |                     |  |   |                 |  |  |   |         | 



|8 | FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
|- | -----------------------------------------------------

Financial assets at fair value through profit or loss at March 31, 2016 and 2015 consisted of the following:



|                                                            |  |               |           |  |      |   |           | 
|----------------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                            |  | At March 31,  |          
|                                                            |  | 2016          |           |  | 2015 |  
|                                                            |  | (In millions) |          
|Debt instruments                                            |  | ¥             | 1,582,571 |  |      | ¥ | 1,654,259 | 
|Equity instruments                                          |  |               | 29,306    |  |      |   | 131,425   | 
|                                                            |  |               |           |  |      |   |           | 
|Total financial assets at fair value through profit or loss |  | ¥             | 1,611,877 |  |      | ¥ | 1,785,684 | 
|                                                            |  |               |           |  |      |   |           | 

The SMFG Group classifies the entire hybrid instrument as financial assets at fair value through profit
or loss when the SMFG Group is required to separate an embedded derivative from its host contract, but is unable to measure the embedded derivative separately either at acquisition or at the end of a subsequent reporting period.

The SMFG Group also classifies certain financial assets held by a venture capital investment subsidiary as financial assets at fair value
through profit or loss. These financial assets are managed and their performance is evaluated on a fair value basis in accordance with a documented risk management or investment strategy.



F-42



---

##### Table of Contents

|9 | INVESTMENT SECURITIES
|- | ---------------------

Investment securities at March 31, 2016 and 2015 consisted of the following:



|                                                            |  |               |            |  |      |   |            | 
|----------------------------------------------------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                                                            |  | At March 31,  |           
|                                                            |  | 2016          |            |  | 2015 |  
|                                                            |  | (In millions) |           
|Held-to-maturity investments:                               |  |               |            |  |      |   |            | 
|Domestic:                                                   |  |               |            |  |      |   |            | 
|Japanese government bonds                                   |  | ¥             | 2,241,491  |  |      | ¥ | 3,282,787  | 
|Japanese municipal bonds                                    |  |               | 20,849     |  |      |   | 67,843     | 
|Japanese corporate bonds                                    |  |               | 5,202      |  |      |   | 46,265     | 
|                                                            |  |               |            |  |      |   |            | 
|Total domestic                                              |  |               | 2,267,542  |  |      |   | 3,396,895  | 
|                                                            |  |               |            |  |      |   |            | 
|Total held-to-maturity investments                          |  | ¥             | 2,267,542  |  |      | ¥ | 3,396,895  | 
|                                                            |  |               |            |  |      |   |            | 
|Available-for-sale financial assets:                        |  |               |            |  |      |   |            | 
|Domestic:                                                   |  |               |            |  |      |   |            | 
|Japanese government bonds                                   |  | ¥             | 6,528,575  |  |      | ¥ | 9,389,959  | 
|Japanese municipal bonds                                    |  |               | 31,221     |  |      |   | 52,150     | 
|Japanese corporate bonds                                    |  |               | 307,496    |  |      |   | 231,591    | 
|                                                            |  |               |            |  |      |   |            | 
|Total domestic debt instruments                             |  |               | 6,867,292  |  |      |   | 9,673,700  | 
|Equity instruments                                          |  |               | 4,668,299  |  |      |   | 5,676,371  | 
|                                                            |  |               |            |  |      |   |            | 
|Total domestic                                              |  |               | 11,535,591 |  |      |   | 15,350,071 | 
|                                                            |  |               |            |  |      |   |            | 
|Foreign:                                                    |  |               |            |  |      |   |            | 
|U.S. Treasury and other U.S. government agency bonds        |  |               | 2,246,130  |  |      |   | 2,062,043  | 
|Bonds issued by other governments and official institutions |  |               | 2,138,993  |  |      |   | 2,205,662  | 
|Mortgage-backed securities                                  |  |               | 984,521    |  |      |   | 257,100    | 
|Other debt instruments                                      |  |               | 112,974    |  |      |   | 214,943    | 
|                                                            |  |               |            |  |      |   |            | 
|Total foreign debt instruments                              |  |               | 5,482,618  |  |      |   | 4,739,748  | 
|Equity instruments                                          |  |               | 579,596    |  |      |   | 752,942    | 
|                                                            |  |               |            |  |      |   |            | 
|Total foreign                                               |  |               | 6,062,214  |  |      |   | 5,492,690  | 
|                                                            |  |               |            |  |      |   |            | 
|Total available-for-sale financial assets                   |  | ¥             | 17,597,805 |  |      | ¥ | 20,842,761 | 
|                                                            |  |               |            |  |      |   |            | 
|Total investment securities                                 |  | ¥             | 19,865,347 |  |      | ¥ | 24,239,656 | 
|                                                            |  |               |            |  |      |   |            | 



F-43



---

##### Table of Contents

|10 | LOANS AND ADVANCES
|-- | ------------------

The
following are the principal components of loans and advances at March 31, 2016 and 2015 by industry classification.



|                                                                             |  |               |            |   |      |   |            |  
|---------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | -
|                                                                             |  | At March 31,  |           
|                                                                             |  | 2016          |            |   | 2015 |  
|                                                                             |  | (In millions) |           
|Domestic:                                                                    |  |               |            |   |      |   |            |  
|Manufacturing                                                                |  | ¥             | 8,298,576  |   |      | ¥ | 8,061,654  |  
|Agriculture, forestry, fisheries and mining                                  |  |               | 184,314    |   |      |   | 171,855    |  
|Construction                                                                 |  |               | 1,169,900  |   |      |   | 1,150,616  |  
|Transportation, communications and public enterprises                        |  |               | 5,258,899  |   |      |   | 5,175,949  |  
|Wholesale and retail                                                         |  |               | 5,548,103  |   |      |   | 5,664,385  |  
|Finance and insurance                                                        |  |               | 2,684,865  |   |      |   | 2,869,967  |  
|Real estate and goods rental and leasing                                     |  |               | 9,587,757  |   |      |   | 8,766,724  |  
|Services                                                                     |  |               | 4,960,352  |   |      |   | 4,776,706  |  
|Municipalities                                                               |  |               | 1,374,306  |   |      |   | 1,353,949  |  
|Lease financing                                                              |  |               | 2,212,048  |   |      |   | 2,211,773  |  
|Consumer(1)                                                                  |  |               | 18,935,521 |   |      |   | 18,817,259 |  
|Others                                                                       |  |               | 2,989,278  |   |      |   | 3,211,240  |  
|                                                                             |  |               |            |   |      |   |            |  
|Total domestic                                                               |  |               | 63,203,919 |   |      |   | 62,232,077 |  
|                                                                             |  |               |            |   |      |   |            |  
|Foreign:                                                                     |  |               |            |   |      |   |            |  
|Public sector                                                                |  |               | 236,290    |   |      |   | 164,495    |  
|Financial institutions                                                       |  |               | 4,067,764  |   |      |   | 3,880,655  |  
|Commerce and industry                                                        |  |               | 20,451,545 |   |      |   | 20,010,729 |  
|Lease financing                                                              |  |               | 357,072    |   |      |   | 308,128    |  
|Others                                                                       |  |               | 1,481,455  |   |      |   | 1,375,624  |  
|                                                                             |  |               |            |   |      |   |            |  
|Total foreign                                                                |  |               | 26,594,126 |   |      |   | 25,739,631 |  
|                                                                             |  |               |            |   |      |   |            |  
|                                                                             |  |              
|Gross loans and advances                                                     |  |               | 89,798,045 |   |      |   | 87,971,708 |  
|Adjust: Unearned income, unamortized premiumsnet and deferred loan feesnet |  |               | (212,957   | ) |      |   | (206,440   | )
|Less: Allowance for loan losses                                              |  |               | (722,717   | ) |      |   | (793,552   | )
|                                                                             |  |               |            |   |      |   |            |  
|Net loans and advances                                                       |  | ¥             | 88,862,371 |   |      | ¥ | 86,971,716 |  
|                                                                             |  |               |            |   |      |   |            |  



|(1) | The balance in Consumer mainly consists of housing loans. The housing loan balances amounted to ¥13,984,755 million and ¥14,087,453 million at March 31, 2016
and 2015, respectively.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-44



---

##### Table of Contents

Reconciliation of allowance for loan losses is as follows:



|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|----------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | --------- | -
|                                                                        |  | For the fiscal year ended March 31, |        
|                                                                        |  | 2016                                |         |   | 2015 |   |         | 2014 | 
|                                                                        |  | (In millions, except percentages)   |        
|Allowance for loan losses at beginning of period                        |  | ¥                                   | 793,552 |   |      | ¥ | 950,665 |      |  | ¥ | 1,262,478 |  
|Provision (credit) for loan losses                                      |  |                                     | 118,750 |   |      |   | 79,552  |      |  |   | (25,806   | )
|Charge-offs:                                                            |  |                                     |         |   |      |   |         |      |  |   |           |  
|Domestic                                                                |  |                                     | 173,431 |   |      |   | 240,663 |      |  |   | 283,034   |  
|Foreign                                                                 |  |                                     | 20,218  |   |      |   | 9,233   |      |  |   | 19,647    |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|Total                                                                   |  |                                     | 193,649 |   |      |   | 249,896 |      |  |   | 302,681   |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|Recoveries:                                                             |  |                                     |         |   |      |   |         |      |  |   |           |  
|Domestic                                                                |  |                                     | 9,477   |   |      |   | 9,517   |      |  |   | 9,293     |  
|Foreign                                                                 |  |                                     | 871     |   |      |   | 380     |      |  |   | 362       |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|Total                                                                   |  |                                     | 10,348  |   |      |   | 9,897   |      |  |   | 9,655     |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|Net charge-offs                                                         |  |                                     | 183,301 |   |      |   | 239,999 |      |  |   | 293,026   |  
|Others(1)                                                               |  |                                     | (6,284  | ) |      |   | 3,334   |      |  |   | 7,019     |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|Allowance for loan losses at end of period                              |  | ¥                                   | 722,717 |   |      | ¥ | 793,552 |      |  | ¥ | 950,665   |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|                                                                        |  |                                     |        
|Ratio of net charge-offs to average loans outstanding during the period |  |                                     | 0.20    | % |      |   | 0.28    | %    |  |   | 0.36      | %
|                                                                        |  |                                     |        
|Allowance for loan losses applicable to foreign activities:             |  |                                     |         |   |      |   |         |      |  |   |           |  
|Balance at beginning of period                                          |  | ¥                                   | 100,783 |   |      | ¥ | 73,030  |      |  | ¥ | 74,868    |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|Balance at end of period                                                |  | ¥                                   | 134,664 |   |      | ¥ | 100,783 |      |  | ¥ | 73,030    |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  
|Provision for loan losses                                               |  | ¥                                   | 60,002  |   |      | ¥ | 32,712  |      |  | ¥ | 10,462    |  
|                                                                        |  |                                     |         |   |      |   |         |      |  |   |           |  



|(1) | Others mainly include foreign exchange translations for the fiscal years ended March 31, 2016, 2015 and 2014.
|--- | -------------------------------------------------------------------------------------------------------------



F-45



---

##### Table of Contents

|11 | INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
|-- | --------------------------------------------

The following table presents the SMFG Groups principal associates and joint venture at March 31, 2016. Investments in associates and joint ventures of the SMFG Group are accounted for using the
equity method unless they are held for sale.



|                                                      |  |                         |  |                                    |      |  |                              |  |      |               |  |                                                    
|----------------------------------------------------- |  | ----------------------- |  | ---------------------------------- | ---- |  | ---------------------------- |  | ---- | ------------- |  | ---------------------------------------------------
|Company Name                                          |  | Country ofIncorporation |  | Proportionof 
OwnershipInterest(1) |      |  | Proportionof
VotingRights(1) |  |      | Main Business
|                                                      |  |                         |  | (%)                                |      |  | (%)                          |  |      |              
|Principal Associates                                  |  |                         |  |                                    |      |  |                              |  |      |               |  |                                                    
|The Japan Net Bank, Limited                           |  | Japan                   |  |                                    | 41.1 |  |                              |  | 41.1 |               |  | Internet banking                                   
|PT Bank Tabungan Pensiunan Nasional Tbk               |  | Indonesia               |  |                                    | 40.4 |  |                              |  | 40.4 |               |  | Commercial banking                                 
|The Bank of East Asia, Limited                        |  | China                   |  |                                    | 18.1 |  |                              |  | 18.1 |               |  | Commercial banking                                 
|ACLEDA Bank Plc.                                      |  | Cambodia                |  |                                    | 18.2 |  |                              |  | 18.2 |               |  | Commercial banking                                 
|Vietnam Export Import Commercial Joint Stock Bank     |  | Vietnam                 |  |                                    | 15.0 |  |                              |  | 15.0 |               |  | Commercial banking                                 
|Sumitomo Mitsui Auto Service Company, Limited         |  | Japan                   |  |                                    | 33.9 |  |                              |  | 33.9 |               |  | Leasing                                            
|NEC Capital Solutions Limited                         |  | Japan                   |  |                                    | 25.0 |  |                              |  | 25.0 |               |  | Leasing                                            
|POCKET CARD CO., LTD.                                 |  | Japan                   |  |                                    | 35.5 |  |                              |  | 35.5 |               |  | Credit card                                        
|JSOL Corporation                                      |  | Japan                   |  |                                    | 50.0 |  |                              |  | 50.0 |               |  | System development and data processing             
|Sakura Information Systems Co., Ltd.                  |  | Japan                   |  |                                    | 49.0 |  |                              |  | 49.0 |               |  | System engineering and data processing             
|Daiwa SB Investments Ltd.                             |  | Japan                   |  |                                    | 43.9 |  |                              |  | 43.9 |               |  | Investment advisory and investment trust management
|Sumitomo Mitsui Asset Management Company, Limited     |  | Japan                   |  |                                    | 40.0 |  |                              |  | 40.0 |               |  | Investment advisory and investment trust management
|China Post & Capital Fund Management Co., Ltd.        |  | China                   |  |                                    | 24.0 |  |                              |  | 24.0 |               |  | Investment advisory and investment trust management
|Principal Joint Venture                               |  |                         |  |                                    |      |  |                              |  |      |               |  |                                                    
|Daiwa Securities SMBC Principal Investments Co., Ltd. |  | Japan                   |  |                                    | 40.0 |  |                              |  | 40.0 |               |  | Investments, fund management                       



|(1) | Percentages of proportion of ownership interest and proportion of voting rights have been truncated.
|--- | ----------------------------------------------------------------------------------------------------

The SMFG Group accounts for certain investees, including The Bank of East Asia, Limited, ACLEDA Bank Plc. and Vietnam Export Import
Commercial Joint Stock Bank, as associates regardless of its below 20% holdings of the voting rights to these investees, since the SMFG Group has the ability to exercise significant influence over these investees through participation in the policy
making process at the meeting of the board of directors, the provision of essential technical information, or other relevant agreements or relationships.

On the other hand, the SMFG Group accounts for certain investees as available-for-sale financial assets regardless of its 20% or more holdings of the voting rights to these investees because the SMFG
Group has contracts or arrangements with other investors by which the SMFG Group loses the power to exert significant influence over such investees.



F-46



---

##### Table of Contents

The SMFG Group has interests in a number of associates and joint ventures, none of which are
regarded as individually material. The following table summarizes, in aggregate, the financial information of all individually immaterial associates and joint ventures that are accounted for using the equity method:



|                                                                |  |                                           |         |   |      |   |         | 
|--------------------------------------------------------------- |  | ----------------------------------------- | ------- | - | ---- | - | ------- | 
|                                                                |  | At and for the fiscal year
endedMarch 31, |        
|                                                                |  | 2016                                      |         |   | 2015 |  
|                                                                |  | (In millions)                             |        
|Carrying amount of investments in associates and joint ventures |  | ¥                                         | 702,264 |   |      | ¥ | 619,814 | 
|Share of:                                                       |  |                                           |         |   |      |   |         | 
|Profit from continuing operations                               |  |                                           | 31,056  |   |      |   | 18,124  | 
|Other comprehensive income (loss)                               |  |                                           | (13,804 | ) |      |   | 5,754   | 
|Total comprehensive income                                      |  |                                           | 17,252  |   |      |   | 23,878  | 

There are no significant restrictions on the ability of associates or joint ventures to transfer funds to
the SMFG Group in the form of cash dividends, repayment of loans and advances.



|12 | PROPERTY, PLANT AND EQUIPMENT
|-- | -----------------------------

The table below shows the changes in property, plant and equipment for the fiscal years ended March 31, 2016 and 2015.



|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|---------------------------------------------- |  | -------------- | --------- | - | ---- | - | ------- | --------- |  | - | ------------ | - |  | ------ | ------ | - | ----- | - | -------- | - |  | - | --------- | -
|                                               |  | Assets forrent |           |   | Land |   |         | Buildings |  |   | Leasedassets |   |  | Others |        |   | Total |  
|                                               |  | (In millions)  |          
|Cost                                           |  | ¥              | 1,338,742 |   |      | ¥ | 473,454 |           |  | ¥ | 644,824      |   |  | ¥      | 16,205 |   |       | ¥ | 421,569  |   |  | ¥ | 2,894,794 |  
|Accumulated depreciation and impairment losses |  |                | (180,324  | ) |      |   | (5,648  | )         |  |   | (354,350     | ) |  |        | (7,675 | ) |       |   | (267,870 | ) |  |   | (815,867  | )
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Net carrying amount at April 1, 2014           |  |                | 1,158,418 |   |      |   | 467,806 |           |  |   | 290,474      |   |  |        | 8,530  |   |       |   | 153,699  |   |  |   | 2,078,927 |  
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Additions                                      |  |                | 357,920   |   |      |   | 27,162  |           |  |   | 34,459       |   |  |        | 1,809  |   |       |   | 71,179   |   |  |   | 492,529   |  
|Acquisition of subsidiaries and businesses     |  |                |          |   |      |   |        |           |  |   |             |   |  |        |       |   |       |   |         |   |  |   |          |  
|Disposals                                      |  |                | (106,934  | ) |      |   | (2,021  | )         |  |   | (1,618       | ) |  |        | (48    | ) |       |   | (1,260   | ) |  |   | (111,881  | )
|Depreciation                                   |  |                | (64,380   | ) |      |   |        |           |  |   | (21,879      | ) |  |        | (1,940 | ) |       |   | (30,939  | ) |  |   | (119,138  | )
|Impairment losses                              |  |                |          |   |      |   | (228    | )         |  |   | (4,867       | ) |  |        |       |   |       |   | (13      | ) |  |   | (5,108    | )
|Exchange differences                           |  |                | 173,251   |   |      |   | 13      |           |  |   | 909          |   |  |        | 11     |   |       |   | 2,032    |   |  |   | 176,216   |  
|Others                                         |  |                | (11,566   | ) |      |   |        |           |  |   | 5,163        |   |  |        | 6      |   |       |   | (8,651   | ) |  |   | (15,048   | )
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Net carrying amount                            |  |                | 1,506,709 |   |      |   | 492,732 |           |  |   | 302,641      |   |  |        | 8,368  |   |       |   | 186,047  |   |  |   | 2,496,497 |  
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Cost                                           |  |                | 1,747,839 |   |      |   | 497,772 |           |  |   | 679,567      |   |  |        | 16,693 |   |       |   | 466,584  |   |  |   | 3,408,455 |  
|Accumulated depreciation and impairment losses |  |                | (241,130  | ) |      |   | (5,040  | )         |  |   | (376,926     | ) |  |        | (8,325 | ) |       |   | (280,537 | ) |  |   | (911,958  | )
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Net carrying amount at March 31, 2015          |  |                | 1,506,709 |   |      |   | 492,732 |           |  |   | 302,641      |   |  |        | 8,368  |   |       |   | 186,047  |   |  |   | 2,496,497 |  
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Additions                                      |  |                | 306,788   |   |      |   | 24,072  |           |  |   | 29,196       |   |  |        | 1,936  |   |       |   | 77,378   |   |  |   | 439,370   |  
|Acquisition of subsidiaries and businesses     |  |                |          |   |      |   |        |           |  |   | 1,175        |   |  |        |       |   |       |   | 615      |   |  |   | 1,790     |  
|Disposals                                      |  |                | (108,452  | ) |      |   | (3,727  | )         |  |   | (1,567       | ) |  |        | (14    | ) |       |   | (1,781   | ) |  |   | (115,541  | )
|Depreciation                                   |  |                | (68,189   | ) |      |   |        |           |  |   | (23,145      | ) |  |        | (2,727 | ) |       |   | (31,054  | ) |  |   | (125,115  | )
|Impairment losses                              |  |                |          |   |      |   | (1,009  | )         |  |   | (3,222       | ) |  |        |       |   |       |   | (6       | ) |  |   | (4,237    | )
|Exchange differences                           |  |                | (78,630   | ) |      |   | (6      | )         |  |   | (744         | ) |  |        | (4     | ) |       |   | (1,395   | ) |  |   | (80,779   | )
|Others                                         |  |                | (12,866   | ) |      |   | 757     |           |  |   | 71,345       |   |  |        | (1     | ) |       |   | (80,269  | ) |  |   | (21,034   | )
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Net carrying amount                            |  |                | 1,545,360 |   |      |   | 512,819 |           |  |   | 375,679      |   |  |        | 7,558  |   |       |   | 149,535  |   |  |   | 2,590,951 |  
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Cost                                           |  |                | 1,833,990 |   |      |   | 518,564 |           |  |   | 760,244      |   |  |        | 16,741 |   |       |   | 431,178  |   |  |   | 3,560,717 |  
|Accumulated depreciation and impairment losses |  |                | (288,630  | ) |      |   | (5,745  | )         |  |   | (384,565     | ) |  |        | (9,183 | ) |       |   | (281,643 | ) |  |   | (969,766  | )
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  
|Net carrying amount at March 31, 2016          |  | ¥              | 1,545,360 |   |      | ¥ | 512,819 |           |  | ¥ | 375,679      |   |  | ¥      | 7,558  |   |       | ¥ | 149,535  |   |  | ¥ | 2,590,951 |  
|                                               |  |                |           |   |      |   |         |           |  |   |              |   |  |        |        |   |       |   |          |   |  |   |           |  

The impairment losses on property, plant and equipment are included in Other expenses in the
consolidated income statement.



F-47



---

##### Table of Contents

The SMFG Group had ¥2,798,483 million and ¥2,801,802 million of contractual
commitments to acquire property, plant and equipment at March 31, 2016 and 2015, respectively.

The carrying amount of items
of property, plant and equipment on which there was a restriction on title was ¥8,139 million and ¥9,299 million at March 31, 2016 and 2015, respectively.

The carrying amount of items of property, plant and equipment pledged as security for liabilities was ¥9,557 million and ¥9,970 million at March 31, 2016 and 2015, respectively.



|13 | LEASES
|-- | ------

As Lessee

The SMFG Group leases land and buildings, office equipment, and other tangible and intangible assets from third parties under finance
leases or operating leases.

Carrying amount of assets held under finance leases

The carrying amount of assets held under finance leases at March 31, 2016 and 2015 consisted of the following:



|                         |  |               |       |  |      |   |       | 
|------------------------ |  | ------------- | ----- |  | ---- | - | ----- | 
|                         |  | At March 31,  |      
|                         |  | 2016          |       |  | 2015 |  
|                         |  | (In millions) |      
|Tangible assets:         |  |               |       |  |      |   |       | 
|Land and buildings       |  | ¥             | 3,689 |  |      | ¥ | 4,082 | 
|Other tangible assets(1) |  |               | 3,869 |  |      |   | 4,286 | 
|                         |  |               |       |  |      |   |       | 
|Total(2)                 |  |               | 7,558 |  |      |   | 8,368 | 
|                         |  |               |       |  |      |   |       | 
|Intangible assets:       |  |               |       |  |      |   |       | 
|Software                 |  |               | 269   |  |      |   | 307   | 
|                         |  |               |       |  |      |   |       | 
|Total(3)                 |  | ¥             | 7,827 |  |      | ¥ | 8,675 | 
|                         |  |               |       |  |      |   |       | 



|(1) | Other tangible assets include mainly equipment, machinery and vehicles.
|--- | -----------------------------------------------------------------------

|(2) | Cross-reference to Leased assets in Note 12 Property, Plant and Equipment.
|--- | ----------------------------------------------------------------------------

|(3) | The SMFG Group has sublet leased assets classified as finance leases (the carrying amount of those assets is not included in table above). Future minimum sublease
payments related to sublet leased assets are included in finance lease commitments.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Finance lease
commitments

The total of future minimum lease payments and their present value under finance leases at March 31,
2016 and 2015 were as follows:



|                                                  |  |               |         |   |      |   |         |  
|------------------------------------------------- |  | ------------- | ------- | - | ---- | - | ------- | -
|                                                  |  | At March 31,  |        
|                                                  |  | 2016          |         |   | 2015 |  
|                                                  |  | (In millions) |        
|Not later than one year                           |  | ¥             | 24,373  |   |      | ¥ | 21,905  |  
|Later than one year and not later than five years |  |               | 75,922  |   |      |   | 64,747  |  
|Later than five years                             |  |               | 9,710   |   |      |   | 19,389  |  
|                                                  |  |               |         |   |      |   |         |  
|Total                                             |  |               | 110,005 |   |      |   | 106,041 |  
|Less: Future interest charges                     |  |               | (4,314  | ) |      |   | (4,201  | )
|                                                  |  |               |         |   |      |   |         |  
|Present value of finance lease commitments(1)     |  | ¥             | 105,691 |   |      | ¥ | 101,840 |  
|                                                  |  |               |         |   |      |   |         |  



|(1) | Present value of finance lease commitments is included in Borrowings in the consolidated statement of financial position. See Note 18
Borrowings.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------



F-48



---

##### Table of Contents

At March 31, 2016 and 2015, the total amounts of future minimum sublease payments to be
received under non-cancellable subleases were ¥80,992 million and ¥66,400 million, respectively.

Operating
lease commitments

The total amounts of future minimum lease payments under non-cancellable operating leases at March
31, 2016 and 2015 were as follows:



|                                                                           |  |               |         |  |      |   |         | 
|-------------------------------------------------------------------------- |  | ------------- | ------- |  | ---- | - | ------- | 
|                                                                           |  | At March 31,  |        
|                                                                           |  | 2016          |         |  | 2015 |  
|                                                                           |  | (In millions) |        
|Not later than one year                                                    |  | ¥             | 42,254  |  |      | ¥ | 44,637  | 
|Later than one year and not later than five years                          |  |               | 104,799 |  |      |   | 113,256 | 
|Later than five years                                                      |  |               | 108,603 |  |      |   | 126,404 | 
|                                                                           |  |               |         |  |      |   |         | 
|Total future minimum lease payments under non-cancellable operating leases |  | ¥             | 255,656 |  |      | ¥ | 284,297 | 
|                                                                           |  |               |         |  |      |   |         | 

For the fiscal years ended March 31, 2016, 2015 and 2014, ¥50,801 million, ¥46,591 million and
¥45,572 million were recognized as expenses in respect of operating lease and sublease agreements, of which ¥50,278 million, ¥46,328 million and ¥45,508 million related to minimum lease payments, and ¥523 million,
¥263 million and ¥64 million related to sublease payments, respectively. Lease expenses recognized in respect of lease and sublease agreements are included in General and administrative expenses in the consolidated income
statement.

As Lessor

The SMFG Group leases assets to third parties under finance leases or operating leases, including machinery, equipment, aircraft, vessel and property.

Finance lease receivable

The gross investment in the lease, unearned finance income, present value of the minimum lease payments receivable and unguaranteed residual values under finance leases at March 31, 2016 and 2015 were as
follows:



|                                                  |  |                              |           |  |                         |   |         |                                                         |  |   |                                 |  |  |   |         | 
|------------------------------------------------- |  | ---------------------------- | --------- |  | ----------------------- | - | ------- | ------------------------------------------------------- |  | - | ------------------------------- |  |  | - | ------- | 
|                                                  |  | At March 31, 2016            |          
|                                                  |  | Gross investmentin the lease |           |  | Unearned finance income |   |         | Present value ofthe minimum lease paymentsreceivable(1) |  |   | Unguaranteedresidual 
values(1) | 
|                                                  |  | (In millions)                |          
|Not later than one year                           |  | ¥                            | 834,652   |  |                         | ¥ | 71,785  |                                                         |  | ¥ | 762,867                         |  |  | ¥ | 18,067  | 
|Later than one year and not later than five years |  |                              | 1,468,368 |  |                         |   | 110,766 |                                                         |  |   | 1,357,602                       |  |  |   | 93,300  | 
|Later than five years                             |  |                              | 310,089   |  |                         |   | 36,445  |                                                         |  |   | 273,644                         |  |  |   | 63,640  | 
|                                                  |  |                              |           |  |                         |   |         |                                                         |  |   |                                 |  |  |   |         | 
|Total                                             |  | ¥                            | 2,613,109 |  |                         | ¥ | 218,996 |                                                         |  | ¥ | 2,394,113                       |  |  | ¥ | 175,007 | 
|                                                  |  |                              |           |  |                         |   |         |                                                         |  |   |                                 |  |  |   |         | 



|                                                  |  |                              |           |  |                         |   |         |                                                         |  |   |                                 |  |  |   |         | 
|------------------------------------------------- |  | ---------------------------- | --------- |  | ----------------------- | - | ------- | ------------------------------------------------------- |  | - | ------------------------------- |  |  | - | ------- | 
|                                                  |  | At March 31, 2015            |          
|                                                  |  | Gross investmentin the lease |           |  | Unearned finance income |   |         | Present value ofthe minimum lease paymentsreceivable(1) |  |   | Unguaranteedresidual 
values(1) | 
|                                                  |  | (In millions)                |          
|Not later than one year                           |  | ¥                            | 846,429   |  |                         | ¥ | 76,587  |                                                         |  | ¥ | 769,842                         |  |  | ¥ | 39,597  | 
|Later than one year and not later than five years |  |                              | 1,402,363 |  |                         |   | 112,891 |                                                         |  |   | 1,289,472                       |  |  |   | 88,810  | 
|Later than five years                             |  |                              | 295,901   |  |                         |   | 34,213  |                                                         |  |   | 261,688                         |  |  |   | 70,492  | 
|                                                  |  |                              |           |  |                         |   |         |                                                         |  |   |                                 |  |  |   |         | 
|Total                                             |  | ¥                            | 2,544,693 |  |                         | ¥ | 223,691 |                                                         |  | ¥ | 2,321,002                       |  |  | ¥ | 198,899 | 
|                                                  |  |                              |           |  |                         |   |         |                                                         |  |   |                                 |  |  |   |         | 



|(1) | Present value of the minimum lease payments receivable and unguaranteed residual values are included in Loans and advances in the consolidated statement of
financial position.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-49



---

##### Table of Contents

Accumulated allowance for uncollectible minimum lease payments receivable was ¥15,565
million and ¥18,254 million at March 31, 2016 and 2015, respectively.

Operating lease receivable

The total amounts of the future minimum lease payments receivable under non-cancellable operating leases at March 31,
2016 and 2015 were as follows:



|                                                  |  |               |           |  |      |   |           | 
|------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                  |  | At March 31,  |          
|                                                  |  | 2016          |           |  | 2015 |  
|                                                  |  | (In millions) |          
|Not later than one year                           |  | ¥             | 186,114   |  |      | ¥ | 165,897   | 
|Later than one year and not later than five years |  |               | 642,387   |  |      |   | 548,945   | 
|Later than five years                             |  |               | 576,463   |  |      |   | 478,063   | 
|                                                  |  |               |           |  |      |   |           | 
|Total                                             |  | ¥             | 1,404,964 |  |      | ¥ | 1,192,905 | 
|                                                  |  |               |           |  |      |   |           | 



|14 | INTANGIBLE ASSETS
|-- | -----------------

Goodwill

The table below shows the changes in goodwill by business segment for the fiscal years ended March 31, 2016 and 2015.



|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|------------------------------------- |  | ----------------- | ------ | - | ------- | - | ------- | ---------- |  | - | --------------- | - |  | ------ | ------ |  | ----- | - | ------ | - |  | - | ------- | -
|                                      |  | CommercialBanking |        |   | Leasing |   |         | Securities |  |   | ConsumerFinance |   |  | Others |        |  | Total |  
|                                      |  | (In millions)     |       
|Gross amount of goodwill              |  | ¥                 | 27,237 |   |         | ¥ | 114,991 |            |  | ¥ | 256,936         |   |  | ¥      | 63,418 |  |       | ¥ | 1,958  |   |  | ¥ | 464,540 |  
|Accumulated impairment losses         |  |                   |       |   |         |   |        |            |  |   | (10,067         | ) |  |        |       |  |       |   | (1,958 | ) |  |   | (12,025 | )
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|Net carrying amount at April 1, 2014  |  |                   | 27,237 |   |         |   | 114,991 |            |  |   | 246,869         |   |  |        | 63,418 |  |       |   |       |   |  |   | 452,515 |  
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|Acquisitions                          |  |                   |       |   |         |   |        |            |  |   |                |   |  |        |       |  |       |   |       |   |  |   |        |  
|Exchange differences                  |  |                   |       |   |         |   | 1,534   |            |  |   |                |   |  |        |       |  |       |   |       |   |  |   | 1,534   |  
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|Net carrying amount                   |  |                   | 27,237 |   |         |   | 116,525 |            |  |   | 246,869         |   |  |        | 63,418 |  |       |   |       |   |  |   | 454,049 |  
|Gross amount of goodwill              |  |                   | 27,237 |   |         |   | 116,525 |            |  |   | 256,936         |   |  |        | 63,418 |  |       |   | 1,958  |   |  |   | 466,074 |  
|Accumulated impairment losses         |  |                   |       |   |         |   |        |            |  |   | (10,067         | ) |  |        |       |  |       |   | (1,958 | ) |  |   | (12,025 | )
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|Net carrying amount at March 31, 2015 |  |                   | 27,237 |   |         |   | 116,525 |            |  |   | 246,869         |   |  |        | 63,418 |  |       |   |       |   |  |   | 454,049 |  
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|Acquisitions(1)                       |  |                   | 8,443  |   |         |   |        |            |  |   |                |   |  |        |       |  |       |   |       |   |  |   | 8,443   |  
|Impairment losses                     |  |                   | (1,124 | ) |         |   |        |            |  |   |                |   |  |        |       |  |       |   |       |   |  |   | (1,124  | )
|Exchange differences                  |  |                   |       |   |         |   | (581    | )          |  |   |                |   |  |        |       |  |       |   |       |   |  |   | (581    | )
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|Net carrying amount                   |  |                   | 34,556 |   |         |   | 115,944 |            |  |   | 246,869         |   |  |        | 63,418 |  |       |   |       |   |  |   | 460,787 |  
|Gross amount of goodwill              |  |                   | 35,680 |   |         |   | 115,944 |            |  |   | 256,936         |   |  |        | 63,418 |  |       |   | 1,958  |   |  |   | 473,936 |  
|Accumulated impairment losses         |  |                   | (1,124 | ) |         |   |        |            |  |   | (10,067         | ) |  |        |       |  |       |   | (1,958 | ) |  |   | (13,149 | )
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  
|Net carrying amount at March 31, 2016 |  | ¥                 | 34,556 |   |         | ¥ | 115,944 |            |  | ¥ | 246,869         |   |  | ¥      | 63,418 |  |       | ¥ |       |   |  | ¥ | 460,787 |  
|                                      |  |                   |        |   |         |   |         |            |  |   |                 |   |  |        |        |  |       |   |        |   |  |   |         |  



|(1) | The SMFG Group recognized goodwill of ¥8,443 million in Commercial Banking resulting from the acquisition of the retail banking business of Citibank Japan Ltd in
November 2015. For additional information, refer to Note 49 Acquisitions.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Impairment testing
of goodwill

Allocating goodwill to cash-generating units

For the purpose of impairment testing, goodwill is allocated to cash-generating units or group of cash-generating units, which represent
the lowest level within the entity at which goodwill is monitored for internal purposes.



F-50



---

##### Table of Contents

At March 31, 2016 the SMFG Group allocated goodwill to SMBC Trust Bank and KUBC within
Commercial Banking amounting to ¥23,359 million and ¥11,197 million, respectively, to SMFL within Leasing amounting to ¥102,710 million, to SMBC Nikko Securities and SMBC Friend Securities within Securities amounting to ¥172,253
million and ¥74,616million, respectively, and to SMBC Consumer Finance within Consumer Finance amounting to ¥56,692 million.

At March 31, 2015 the SMFG Group allocated goodwill to SMBC Trust Bank and KUBC within Commercial Banking amounting to ¥16,040 million and ¥11,197 million, respectively, to SMFL within Leasing
amounting to ¥102,710 million, to SMBC Nikko Securities and SMBC Friend Securities within Securities amounting to ¥172,253 million and ¥74,616 million, respectively, and to SMBC Consumer Finance within Consumer Finance amounting to
¥56,692 million.

The aggregate amounts of other goodwill were ¥19,960 million and ¥20,541 million at March 31,
2016 and 2015, respectively, and they were not considered individually significant.

Timing of impairment tests

The SMFG Group performs impairment tests at least annually and whenever there is an indication that the cash-generating
unit may be impaired.

Recoverable amount of cash-generating units

To determine whether an impairment loss shall be recognized, the carrying amount of a cash-generating unit is compared to its recoverable
amount. The recoverable amount of a cash-generating unit is the higher of its fair value less costs to sell and its value in use.

Fair value less costs to sell: The fair value less costs to sell is determined using an observable market price for the cash-generating unit in the active market at the date of the impairment test.

Value in use: The value in use is determined based on discounted future cash flows, which are based on the financial
plans which have been approved by management and which are valid when the impairment test is performed. The financial plans are prepared taking into account the current economic and regulatory environment, direction of the regulation and business
forecasts of the individual cash-generating units.

The SMFG Group determined the recoverable amounts of the primary
cash-generating units based on the value in use.

The financial plans, which are used to estimate the cash flow projections of
the cash-generating units, cover three to five years. The cash flow projections beyond the period covered by the financial plans are extrapolated by applying the appropriate growth rates in perpetuity.



F-51



---

##### Table of Contents

Key assumptions used in impairment testing

The key assumptions used for the value in use calculations for the fiscal years ended March 31, 2016 and 2015 were as follows:



|                                          |  |                           |             |  |      |  |      |      |  |  |                     |   |  |                      |      |   |                     |  |      |   |  |  |       |  
|----------------------------------------- |  | ------------------------- | ----------- |  | ---- |  | ---- | ---- |  |  | ------------------- | - |  | -------------------- | ---- | - | ------------------- |  | ---- | - |  |  | ----- | -
|                                          |  | SMBC        
TrustBank(1) |             |  | KUBC |  |      | SMFL |  |  | SMBCNikkoSecurities |   |  | SMBCFriendSecurities |      |   | SMBCConsumerFinance | 
|For the fiscal year ended March 31, 2016: |  |                           |             |  |      |  |      |      |  |  |                     |   |  |                      |      |   |                     |  |      |   |  |  |       |  
|Pre-tax discount rate                     |  |                           | 7.84%/5.63% |  |      |  | 5.27 | %    |  |  | 6.55                | % |  |                      | 7.53 | % |                     |  | 6.72 | % |  |  | 9.87  | %
|Growth rate                               |  |                           | 1.00%       |  |      |  | 1.00 | %    |  |  | 1.00                | % |  |                      | 1.00 | % |                     |  | 1.00 | % |  |  | 1.00  | %
|For the fiscal year ended March 31, 2015: |  |                           |             |  |      |  |      |      |  |  |                     |   |  |                      |      |   |                     |  |      |   |  |  |       |  
|Pre-tax discount rate                     |  |                           | 8.48%/     |  |      |  | 6.62 | %    |  |  | 7.53                | % |  |                      | 9.73 | % |                     |  | 8.36 | % |  |  | 11.01 | %
|Growth rate                               |  |                           | 1.00%       |  |      |  | 1.00 | %    |  |  | 1.00                | % |  |                      | 1.00 | % |                     |  | 1.00 | % |  |  | 1.00  | %



|(1) | The retail banking business which SMBC Trust Bank acquired from Citibank Japan Ltd., in November 2015 is identified as a cash-generating unit separated from the
existing business.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Management considers that the pre-tax discount rates and the growth rates are the most
sensitive key assumptions to determine the value in use of the cash-generating units.

Pre-tax discount rate: The
pre-tax discount rates used to estimate the discounted cash flow of the primary cash-generating units are determined based on the Capital Asset Pricing Model (CAPM). The risk-free interest rate, the market risk premium and the beta
factor that are used in the CAPM are determined based on market data and other external sources of information. The beta factor is determined based on a respective group of peer companies of the cash-generating units.

Growth rate: The growth rates used to estimate the cash flow projections beyond the period covered by the financial plans, which
shall cover a maximum period of five years, are determined based on the expected long-term inflation rate and long-term average growth rates for the industries. The growth rate does not exceed the long-term growth rate for the industry in which the
cash-generating unit operates.

Management believes that there were no reasonably possible changes in any of the key
assumptions that would lead to the recoverable amounts of the cash-generating units being below these carrying amounts for the fiscal years ended March 31, 2016 and 2015.



F-52



---

##### Table of Contents

Other intangible assets

The table below shows the changes in other intangible assets for the fiscal years ended March 31, 2016 and 2015.



|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|---------------------------------------------- |  | ----------------------------- | -------- | - | ----------------- | - | ------- | ---------------------------------- |  | - | ---------- | - |  | ---------------- | ------- | - | ----- | - | ------ | - |  | - | --------- | -
|                                               |  | Internally generated software |          |   | Purchasedsoftware |   |         | Contractual customer relationships |  |   | Trademarks |   |  | Otherintangibles |         |   | Total |  
|                                               |  | (In millions)                 |         
|Cost                                           |  | ¥                             | 589,779  |   |                   | ¥ | 206,158 |                                    |  | ¥ | 163,630    |   |  | ¥                | 41,828  |   |       | ¥ | 28,318 |   |  | ¥ | 1,029,713 |  
|Accumulated amortization and impairment losses |  |                               | (390,634 | ) |                   |   | (77,052 | )                                  |  |   | (36,474    | ) |  |                  | (17,641 | ) |       |   | (4,681 | ) |  |   | (526,482  | )
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Net carrying amount at April 1, 2014           |  |                               | 199,145  |   |                   |   | 129,106 |                                    |  |   | 127,156    |   |  |                  | 24,187  |   |       |   | 23,637 |   |  |   | 503,231   |  
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Additions                                      |  |                               | 92,210   |   |                   |   | 47,242  |                                    |  |   |           |   |  |                  |        |   |       |   | 8,487  |   |  |   | 147,939   |  
|Acquisition of subsidiaries and businesses     |  |                               |         |   |                   |   |        |                                    |  |   |           |   |  |                  |        |   |       |   |       |   |  |   |          |  
|Disposals                                      |  |                               | (277     | ) |                   |   | (3,941  | )                                  |  |   |           |   |  |                  |        |   |       |   | (5,237 | ) |  |   | (9,455    | )
|Amortization                                   |  |                               | (62,027  | ) |                   |   | (38,072 | )                                  |  |   | (10,826    | ) |  |                  | (4,183  | ) |       |   | (2,770 | ) |  |   | (117,878  | )
|Impairment losses                              |  |                               |         |   |                   |   |        |                                    |  |   |           |   |  |                  |        |   |       |   | (4     | ) |  |   | (4        | )
|Exchange differences                           |  |                               | 968      |   |                   |   | 270     |                                    |  |   |           |   |  |                  |        |   |       |   | 966    |   |  |   | 2,204     |  
|Others                                         |  |                               | 3,704    |   |                   |   | (9,112  | )                                  |  |   |           |   |  |                  |        |   |       |   | 1,317  |   |  |   | (4,091    | )
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Net carrying amount                            |  |                               | 233,723  |   |                   |   | 125,493 |                                    |  |   | 116,330    |   |  |                  | 20,004  |   |       |   | 26,396 |   |  |   | 521,946   |  
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Cost                                           |  |                               | 638,644  |   |                   |   | 212,731 |                                    |  |   | 163,630    |   |  |                  | 41,828  |   |       |   | 33,678 |   |  |   | 1,090,511 |  
|Accumulated amortization and impairment losses |  |                               | (404,921 | ) |                   |   | (87,238 | )                                  |  |   | (47,300    | ) |  |                  | (21,824 | ) |       |   | (7,282 | ) |  |   | (568,565  | )
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Net carrying amount at March 31, 2015          |  |                               | 233,723  |   |                   |   | 125,493 |                                    |  |   | 116,330    |   |  |                  | 20,004  |   |       |   | 26,396 |   |  |   | 521,946   |  
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Additions                                      |  |                               | 110,352  |   |                   |   | 46,191  |                                    |  |   |           |   |  |                  |        |   |       |   | 2,496  |   |  |   | 159,039   |  
|Acquisition of subsidiaries and businesses     |  |                               |         |   |                   |   | 234     |                                    |  |   | 9,320      |   |  |                  |        |   |       |   | 27,487 |   |  |   | 37,041    |  
|Disposals                                      |  |                               | (290     | ) |                   |   | (1,073  | )                                  |  |   |           |   |  |                  |        |   |       |   | (633   | ) |  |   | (1,996    | )
|Amortization                                   |  |                               | (70,358  | ) |                   |   | (38,241 | )                                  |  |   | (11,021    | ) |  |                  | (4,183  | ) |       |   | (3,069 | ) |  |   | (126,872  | )
|Impairment losses                              |  |                               |         |   |                   |   |        |                                    |  |   |           |   |  |                  |        |   |       |   | (154   | ) |  |   | (154      | )
|Exchange differences                           |  |                               | (98      | ) |                   |   | (665    | )                                  |  |   |           |   |  |                  |        |   |       |   | (289   | ) |  |   | (1,052    | )
|Others                                         |  |                               | 480      |   |                   |   | 2,524   |                                    |  |   |           |   |  |                  |        |   |       |   | (3,650 | ) |  |   | (646      | )
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Net carrying amount                            |  |                               | 273,809  |   |                   |   | 134,463 |                                    |  |   | 114,629    |   |  |                  | 15,821  |   |       |   | 48,584 |   |  |   | 587,306   |  
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Cost                                           |  |                               | 710,902  |   |                   |   | 227,035 |                                    |  |   | 172,950    |   |  |                  | 41,828  |   |       |   | 58,368 |   |  |   | 1,211,083 |  
|Accumulated amortization and impairment losses |  |                               | (437,093 | ) |                   |   | (92,572 | )                                  |  |   | (58,321    | ) |  |                  | (26,007 | ) |       |   | (9,784 | ) |  |   | (623,777  | )
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  
|Net carrying amount at March 31, 2016          |  | ¥                             | 273,809  |   |                   | ¥ | 134,463 |                                    |  | ¥ | 114,629    |   |  | ¥                | 15,821  |   |       | ¥ | 48,584 |   |  | ¥ | 587,306   |  
|                                               |  |                               |          |   |                   |   |         |                                    |  |   |            |   |  |                  |         |   |       |   |        |   |  |   |           |  

The impairment losses on other intangible assets are included in Other expenses and the
amortization expenses of other intangible assets are included in General and administrative expenses in the consolidated income statement.

The SMFG Group had ¥1,733 million and ¥2,770 million of contractual commitments to acquire intangible assets at March 31, 2016 and 2015, respectively.

The amounts of research and development expenditure recognized as expenses for the fiscal years ended March 31, 2016, 2015 and 2014 were
¥207 million, ¥171 million and ¥160 million, respectively, and they were included in General and administrative expenses in the consolidated income statement.

Other intangibles at March 31, 2016 and 2015 include leasehold rights, amounting to ¥7,068 million and ¥7,434 million,
respectively, which are rights to use land for the purpose of owning the buildings. Since the SMFG Group has a long history of renewal, these contracts are not expected to be terminated in the foreseeable future. Leasehold rights are expected to
generate cash flows for an indefinite period of time. They are not amortized but are tested for impairment annually, irrespective of whether there is any indication of impairment.



F-53



---

##### Table of Contents

|15 | OTHER ASSETS
|-- | ------------

Other
assets at March 31, 2016 and 2015 consisted of the following:



|                                                                            |  |               |           |  |      |   |           | 
|--------------------------------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                                            |  | At March 31,  |          
|                                                                            |  | 2016          |           |  | 2015 |  
|                                                                            |  | (In millions) |          
|Prepaid expenses                                                            |  | ¥             | 62,900    |  |      | ¥ | 54,519    | 
|Accrued income                                                              |  |               | 361,481   |  |      |   | 370,625   | 
|Receivables from brokers, dealers and customers for securities transactions |  |               | 1,101,591 |  |      |   | 1,367,720 | 
|Cash collateral provided for derivative and other financial transactions    |  |               | 811,300   |  |      |   | 341,901   | 
|Retirement benefit assets                                                   |  |               | 232,621   |  |      |   | 379,188   | 
|Security deposits                                                           |  |               | 115,714   |  |      |   | 120,303   | 
|Investment properties(1)                                                    |  |               | 348,122   |  |      |   | 293,554   | 
|Others                                                                      |  |               | 620,719   |  |      |   | 557,313   | 
|                                                                            |  |               |           |  |      |   |           | 
|Total other assets                                                          |  | ¥             | 3,654,448 |  |      | ¥ | 3,485,123 | 
|                                                                            |  |               |           |  |      |   |           | 



|(1) | Investment properties are carried at cost less accumulated depreciation and accumulated impairment losses. The fair values of investment properties were ¥370,384
million and ¥306,720 million at March 31, 2016 and 2015, respectively. The fair values were mainly determined based on market values provided by independent valuation appraisers having the appropriate recognized professional qualifications and
recent experience in the locations and categories of properties being valued. Rental income from investment properties was ¥20,879 million, ¥19,076 million and ¥15,195 million for the fiscal years ended March 31, 2016, 2015 and 2014,
respectively.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|16 | DEPOSITS
|-- | --------

Deposits at
March 31, 2016 and 2015 consisted of the following:



|                                     |  |               |             |  |      |   |             | 
|------------------------------------ |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                                     |  | At March 31,  |            
|                                     |  | 2016          |             |  | 2015 |  
|                                     |  | (In millions) |            
|Non-interest-bearing demand deposits |  | ¥             | 18,663,654  |  |      | ¥ | 16,250,493  | 
|Interest-bearing demand deposits     |  |               | 46,840,202  |  |      |   | 42,041,777  | 
|Deposits at notice                   |  |               | 9,694,571   |  |      |   | 8,790,017   | 
|Time deposits                        |  |               | 29,144,425  |  |      |   | 29,084,465  | 
|Negotiable certificates of deposit   |  |               | 14,249,835  |  |      |   | 13,825,898  | 
|Others(1)                            |  |               | 7,348,110   |  |      |   | 5,841,330   | 
|                                     |  |               |             |  |      |   |             | 
|Total deposits                       |  | ¥             | 125,940,797 |  |      | ¥ | 115,833,980 | 
|                                     |  |               |             |  |      |   |             | 



|(1) | Others include, among other items, foreign currency deposits in domestic offices and Japanese yen accounts held by foreign depositors in domestic offices.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



F-54



---

##### Table of Contents

|17 | TRADING LIABILITIES
|-- | -------------------

Trading liabilities at March 31, 2016 and 2015 consisted of the following:



|                                    |  |               |           |  |      |   |           | 
|----------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                    |  | At March 31,  |          
|                                    |  | 2016          |           |  | 2015 |  
|                                    |  | (In millions) |          
|Debt instruments short position   |  | ¥             | 2,184,408 |  |      | ¥ | 2,175,313 | 
|Equity instruments short position |  |               | 13,265    |  |      |   | 18,087    | 
|                                    |  |               |           |  |      |   |           | 
|Total trading liabilities           |  | ¥             | 2,197,673 |  |      | ¥ | 2,193,400 | 
|                                    |  |               |           |  |      |   |           | 

Trading liabilities include the instruments classified as held for trading. Trading debt instruments
mainly consist of Japanese government bonds. Trading equity instruments mainly consist of publicly traded Japanese stocks.



F-55



---

##### Table of Contents

|18 | BORROWINGS
|-- | ----------

Short-term
borrowings and long-term borrowings (with original maturities of more than one year) at March 31, 2016 and 2015 consisted of the following:



|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|----------------------------------------------------------------------- |  | ------------- | ------------- |  | ------------- | - | --------- | ---- |  | - | ---------- | 
|                                                                        |  |               |               |  | At March 31,  |  
|                                                                        |  | Interest rate |               |  | 2016          |   |           | 2015 | 
|                                                                        |  |               |               |  | (In millions) |  
|SMFG:                                                                   |  |               |               |  |               |   |           |      |  |   |            | 
|Long-term borrowings:                                                   |  |               |               |  |               |   |           |      |  |   |            | 
|Subordinated                                                            |  |               |               |  |               |   |           |      |  |   |            | 
|Fixed rate borrowing, payable in Japanese yen,due 2024-2031             |  |               | 0.56%-1.27%   |  |               | ¥ | 49,000    |      |  | ¥ | 31,000     | 
|SMBC:                                                                   |  |               |               |  |               |   |           |      |  |   |            | 
|Short-term borrowings                                                   |  |               | 0.00%-0.88%   |  |               |   | 2,095,696 |      |  |   | 5,652,752  | 
|Long-term borrowings:                                                   |  |               |               |  |               |   |           |      |  |   |            | 
|Unsubordinated                                                          |  |               |               |  |               |   |           |      |  |   |            | 
|Fixed rate borrowing, payable in Japanese yen,due 2015-2028             |  |               | 0.10%-6.10%   |  |               |   | 2,424,818 |      |  |   | 15,893     | 
|Fixed rate borrowing, payable in United States dollars,due 2019-2025    |  |               | 2.36%-3.45%   |  |               |   | 45,048    |      |  |   | 36,045     | 
|Floating rate borrowing, payable in Japanese yen,due 2016-2036          |  |               | (0.17%)-0.16% |  |               |   | 125,526   |      |  |   | 158,403    | 
|Floating rate borrowing, payable in United States dollars,due 2015-2033 |  |               | 0.35%-2.00%   |  |               |   | 749,117   |      |  |   | 683,049    | 
|Other fixed or floating rate borrowing,due 2017-2045                    |  |               | 0.07%-3.50%   |  |               |   | 92,403    |      |  |   | 89,053     | 
|Subordinated                                                            |  |               |               |  |               |   |           |      |  |   |            | 
|Fixed rate borrowing, payable in Japanese yen,due 2015-2027             |  |               | 1.28%-4.50%   |  |               |   | 231,000   |      |  |   | 261,000    | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|Total SMBC                                                              |  |               |               |  |               |   | 5,763,608 |      |  |   | 6,896,195  | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|Other subsidiaries:                                                     |  |               |               |  |               |   |           |      |  |   |            | 
|Short-term borrowings                                                   |  |               | 0.06%-9.36%   |  |               |   | 977,813   |      |  |   | 1,093,497  | 
|Long-term borrowings:                                                   |  |               |               |  |               |   |           |      |  |   |            | 
|Unsubordinated                                                          |  |               |               |  |               |   |           |      |  |   |            | 
|Fixed rate borrowing, payable in Japanese yen,due 2015-2042             |  |               | 0.00%-2.67%   |  |               |   | 565,402   |      |  |   | 477,201    | 
|Fixed rate borrowing, payable in United States dollars,due 2015-2023    |  |               | 0.39%-5.96%   |  |               |   | 154,840   |      |  |   | 136,380    | 
|Fixed rate borrowing, payable in Chinese yuan,due 2015-2019             |  |               | 2.40%-6.15%   |  |               |   | 30,063    |      |  |   | 21,852     | 
|Fixed rate borrowing, payable in Thai baht,due 2015-2021                |  |               | 2.20%-4.03%   |  |               |   | 9,334     |      |  |   | 24,173     | 
|Floating rate borrowing, payable in Japanese yen,due 2015-2040          |  |               | 0.06%-11.75%  |  |               |   | 523,588   |      |  |   | 712,734    | 
|Floating rate borrowing, payable in United States dollars,due 2015-2027 |  |               | 0.40%-3.31%   |  |               |   | 505,150   |      |  |   | 519,842    | 
|Floating rate borrowing, payable in euros,due 2018                      |  |               | 1.00%-1.96%   |  |               |   | 48,435    |      |  |   | 28,252     | 
|Floating rate borrowing, payable in Chinese yuan,due 2015-2019          |  |               | 2.50%-6.77%   |  |               |   | 8,835     |      |  |   | 26,585     | 
|Other fixed or floating rate borrowing,due 2015-2043                    |  |               | 0.58%-11.79%  |  |               |   | 30,185    |      |  |   | 18,111     | 
|Subordinated                                                            |  |               |               |  |               |   |           |      |  |   |            | 
|Fixed rate borrowing, payable in Japanese yen,due 2021                  |  |               | 1.35%         |  |               |   | 5,200     |      |  |   | 5,200      | 
|Fixed rate borrowing, payable in United States dollars,due 2018         |  |               | 7.62%-7.72%   |  |               |   |          |      |  |   | 9,011      | 
|Floating rate borrowing, payable in Japanese yen,due 2015-2025          |  |               | 1.92%-2.65%   |  |               |   | 10,000    |      |  |   | 11,250     | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|Total other subsidiaries                                                |  |               |               |  |               |   | 2,868,845 |      |  |   | 3,084,088  | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|Liabilities associated with securitization transactions:                |  |               |               |  |               |   |           |      |  |   |            | 
|Fixed rate borrowing, payable in Japanese yen,due 2016-2049             |  |               | 0.09%-2.70%   |  |               |   | 1,028,089 |      |  |   | 1,006,806  | 
|Floating rate borrowing, payable in Japanese yen,due 2017-2033          |  |               | 0.25%-1.78%   |  |               |   | 89,907    |      |  |   | 86,647     | 
|Floating rate borrowing, payable in United States dollars,due 2019-2020 |  |               | 0.99%-1.55%   |  |               |   | 8,989     |      |  |   | 10,476     | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|Total liabilities associated with securitization transactions           |  |               |               |  |               |   | 1,126,985 |      |  |   | 1,103,929  | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|Lease obligations                                                       |  |               |              |  |               |   | 105,691   |      |  |   | 101,840    | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 
|Total borrowings                                                        |  |               |               |  |               | ¥ | 9,914,129 |      |  | ¥ | 11,217,052 | 
|                                                                        |  |               |               |  |               |   |           |      |  |   |            | 

The interest rates shown in the above table are the contractual rates in effect at March 31, 2016 and
2015, and thus do not represent the actual effective interest rates. Maturity information for certain subordinated borrowings is based on the date of callable options.



F-56



---

##### Table of Contents

|19 | DEBT SECURITIES IN ISSUE
|-- | ------------------------

Debt securities in issue at March 31, 2016 and 2015 consisted of the following:



|                                                      |  |               |  |               |            |  |      |   |            | 
|----------------------------------------------------- |  | ------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                                                      |  |               |  | At March 31,  |           
|                                                      |  | Interest rate |  | 2016          |            |  | 2015 |  
|                                                      |  |               |  | (In millions) |           
|SMFG:                                                 |  |               |  |               |            |  |      |   |            | 
|Bonds:                                                |  |               |  |               |            |  |      |   |            | 
|Bonds, payable in United States dollars,              |  |               |  |               |            |  |      |   |            | 
|due 2021-2026                                         |  | 2.32%-3.78%   |  | ¥             | 441,257    |  |      | ¥ |           | 
|Subordinated bonds:                                   |  |               |  |               |            |  |      |   |            | 
|Subordinated bonds, payable in Japanese yen,          |  |               |  |               |            |  |      |   |            | 
|due 2024-2030                                         |  | 0.59%-1.33%   |  |               | 409,062    |  |      |   | 134,200    | 
|Subordinated bonds, payable in United States dollars, |  |               |  |               |            |  |      |   |            | 
|due 2024                                              |  | 4.44%         |  |               | 196,718    |  |      |   | 209,789    | 
|                                                      |  |               |  |               |            |  |      |   |            | 
|Total SMFG                                            |  |               |  |               | 1,047,037  |  |      |   | 343,989    | 
|                                                      |  |               |  |               |            |  |      |   |            | 
|SMBC:                                                 |  |               |  |               |            |  |      |   |            | 
|Commercial paper                                      |  | (0.36%)-1.16% |  |               | 1,979,511  |  |      |   | 2,575,587  | 
|Bonds:                                                |  |               |  |               |            |  |      |   |            | 
|Bonds, payable in Japanese yen,                       |  |               |  |               |            |  |      |   |            | 
|due 2015-2019                                         |  | (0.04%)-0.69% |  |               | 389,815    |  |      |   | 766,307    | 
|Bonds, payable in United States dollars,              |  |               |  |               |            |  |      |   |            | 
|due 2015-2045                                         |  | 0.57%-4.30%   |  |               | 2,597,629  |  |      |   | 2,558,292  | 
|Bonds, payable in euros,                              |  |               |  |               |            |  |      |   |            | 
|due 2017-2023                                         |  | 0.09%-2.75%   |  |               | 443,004    |  |      |   | 258,533    | 
|Bonds, payable in Australian dollars,                 |  |               |  |               |            |  |      |   |            | 
|due 2016-2025                                         |  | 2.97%-4.13%   |  |               | 126,808    |  |      |   | 137,981    | 
|Bonds, payable in British pounds sterling,            |  |               |  |               |            |  |      |   |            | 
|due 2016                                              |  | 1.11%         |  |               |           |  |      |   | 44,503     | 
|Bonds, payable in Hong Kong dollars,                  |  |               |  |               |            |  |      |   |            | 
|due 2020-2025                                         |  | 2.09%-2.92%   |  |               | 34,349     |  |      |   | 13,392     | 
|Subordinated bonds:                                   |  |               | 
|Subordinated bonds, payable in Japanese yen,          |  |               |  |               |            |  |      |   |            | 
|due 2015-2035                                         |  | 0.87%-2.97%   |  |               | 890,497    |  |      |   | 949,438    | 
|Subordinated bonds, payable in United States dollars, |  |               |  |               |            |  |      |   |            | 
|due 2022-Perpetual                                    |  | 4.85%-5.63%   |  |               | 168,207    |  |      |   | 217,208    | 
|Subordinated bonds, payable in euros,                 |  |               |  |               |            |  |      |   |            | 
|due 2020-Perpetual                                    |  | 4.00%-4.38%   |  |               | 94,158     |  |      |   | 139,269    | 
|                                                      |  |               |  |               |            |  |      |   |            | 
|Total SMBC                                            |  |               |  |               | 6,723,978  |  |      |   | 7,660,510  | 
|                                                      |  |               |  |               |            |  |      |   |            | 
|Other subsidiaries:                                   |  |               |  |               |            |  |      |   |            | 
|Commercial paper                                      |  | (0.00%)-0.77% |  |               | 2,190,004  |  |      |   | 2,238,315  | 
|Bonds:                                                |  |               |  |               |            |  |      |   |            | 
|Bonds, payable in Japanese yen,                       |  |               |  |               |            |  |      |   |            | 
|due 2015-2046                                         |  | 0.01%-19.20%  |  |               | 737,765    |  |      |   | 650,056    | 
|Bonds, payable in United States dollars,              |  |               |  |               |            |  |      |   |            | 
|due 2015-2036                                         |  | 0.01%-5.00%   |  |               | 3,295      |  |      |   | 1,458      | 
|Bonds, payable in Chinese yuan,                       |  |               |  |               |            |  |      |   |            | 
|due 2015-2016                                         |  | 0.00%-5.80%   |  |               | 36,365     |  |      |   | 30,903     | 
|Bonds, payable in Indonesian rupiah,                  |  |               |  |               |            |  |      |   |            | 
|due 2018                                              |  | 9.85%         |  |               | 8,778      |  |      |   |           | 
|Bonds, payable in Australian dollars,                 |  |               |  |               |            |  |      |   |            | 
|due 2019                                              |  | 0.01%         |  |               | 90         |  |      |   |           | 
|Subordinated bonds:                                   |  |               | 
|Subordinated bonds, payable in Japanese yen,          |  |               |  |               |            |  |      |   |            | 
|due 2016-Perpetual                                    |  | 2.19%-4.50%   |  |               | 82,300     |  |      |   | 126,200    | 
|                                                      |  |               |  |               |            |  |      |   |            | 
|Total other subsidiaries                              |  |               |  |               | 3,058,597  |  |      |   | 3,046,932  | 
|                                                      |  |               |  |               |            |  |      |   |            | 
|Total debt securities in issue                        |  |               |  | ¥             | 10,829,612 |  |      | ¥ | 11,051,431 | 
|                                                      |  |               |  |               |            |  |      |   |            | 

Interest rates represent the contractual interest rates that were applied at March 31, 2016 and 2015, and
thus do not represent the actual effective interest rates.



F-57



---

##### Table of Contents

|20 | PROVISIONS
|-- | ----------

The following
table presents movements by class of provisions for the fiscal years ended March 31, 2016 and 2015.



|                                                               |  |                                 |         |   |                  |   |         |       |  |   |         |  
|-------------------------------------------------------------- |  | ------------------------------- | ------- | - | ---------------- | - | ------- | ----- |  | - | ------- | -
|                                                               |  | Provision forinterest repayment |         |   | Other provisions |   |         | Total | 
|                                                               |  | (In millions)                   |        
|Balance at April 1, 2014                                       |  | ¥                               | 189,993 |   |                  | ¥ | 35,480  |       |  | ¥ | 225,473 |  
|Additional provisions                                          |  |                                 | 64,837  |   |                  |   | 17,121  |       |  |   | 81,958  |  
|Amounts used                                                   |  |                                 | (87,473 | ) |                  |   | (11,310 | )     |  |   | (98,783 | )
|Unused amounts reversed                                        |  |                                 | (752    | ) |                  |   | (514    | )     |  |   | (1,266  | )
|Amortization of discount and effect of change in discount rate |  |                                 | 110     |   |                  |   | 246     |       |  |   | 356     |  
|Acquisition of subsidiaries and businesses                     |  |                                 |        |   |                  |   |        |       |  |   |        |  
|Others                                                         |  |                                 |        |   |                  |   | (114    | )     |  |   | (114    | )
|                                                               |  |                                 |         |   |                  |   |         |       |  |   |         |  
|Balance at March 31, 2015                                      |  |                                 | 166,715 |   |                  |   | 40,909  |       |  |   | 207,624 |  
|                                                               |  |                                 |         |   |                  |   |         |       |  |   |         |  
|Additional provisions                                          |  |                                 | 141,000 |   |                  |   | 10,431  |       |  |   | 151,431 |  
|Amounts used                                                   |  |                                 | (78,317 | ) |                  |   | (19,176 | )     |  |   | (97,493 | )
|Unused amounts reversed                                        |  |                                 | (735    | ) |                  |   | (339    | )     |  |   | (1,074  | )
|Amortization of discount and effect of change in discount rate |  |                                 | 759     |   |                  |   | 218     |       |  |   | 977     |  
|Acquisition of subsidiaries and businesses                     |  |                                 |        |   |                  |   | 929     |       |  |   | 929     |  
|Others                                                         |  |                                 |        |   |                  |   | 7       |       |  |   | 7       |  
|                                                               |  |                                 |         |   |                  |   |         |       |  |   |         |  
|Balance at March 31, 2016                                      |  | ¥                               | 229,422 |   |                  | ¥ | 32,979  |       |  | ¥ | 262,401 |  
|                                                               |  |                                 |         |   |                  |   |         |       |  |   |         |  

Provision for Interest Repayment

Japan has two laws restricting interest rates on loans. The Interest Rate Restriction Act sets the maximum interest rates on loans ranging from 15% to 20%. The Act Regulating the Receipt of Contributions,
Receipt of Deposits and Interest Rates capped the interest rate on loans at 29.2% up to June 2010. Interest rates on loans greater than the range of 15-20% but below the maximum allowable of 29.2% were called gray zone interest, and many
consumer lending and credit card companies were charging interest in this zone.

In January 2006, judicial decisions strictly
interpreted the conditions under which consumer finance companies may retain gray zone interest. As a result, claims for refunds of gray zone interest have increased, and consumer lending and credit card companies have recorded a provision for
claims for refunds of gray zone interest.

In December 2006, the Government of Japan made amendments to laws regulating money
lenders to implement regulatory reforms affecting the consumer finance industry. As a result, in June 2010, the maximum legal interest rates on loans were reduced to the range of 15-20%, and gray zone interest was abolished.

The provision for interest repayment is calculated by estimating the future claims for the refund of gray zone interest, taking into
account historical experience such as the number of customer claims for a refund, the amount of repayments and the characteristics of customers, and the length of the period during which claims are expected to be received in the future. Of these
historical experiences, the number of customer claims for the refund has a significant effect on the amount of the provision, and the historical number of customer claims to the



F-58



---

##### Table of Contents

SMFG Group was 137 thousand, 139 thousand and 132 thousand for the fiscal years ended March 31, 2016, 2015 and 2014, respectively. The timing of the settlement of these claims is uncertain.

The increase in the provision for interest repayment for the fiscal year ended March 31, 2016 was primarily due to an
increase in additional provisions as a result of reflecting the recent trends in the number of customer claims for the refund to the estimation of the future claims for the refund.

Other Provisions

Other provisions include asset retirement obligations and
provisions for reimbursement of deposits, loan commitments, product warranties and litigation claims. Most of these provisions occurred in the normal course of business and none of them were individually significant at March 31, 2016 and 2015.



|21 | OTHER LIABILITIES
|-- | -----------------

Other
liabilities at March 31, 2016 and 2015 consisted of the following:



|                                                                       |  |               |           |  |      |   |           | 
|---------------------------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                                       |  | At March 31,  |          
|                                                                       |  | 2016          |           |  | 2015 |  
|                                                                       |  | (In millions) |          
|Accrued expenses                                                       |  | ¥             | 258,464   |  |      | ¥ | 252,420   | 
|Unearned income                                                        |  |               | 159,888   |  |      |   | 161,355   | 
|Financial guarantees and other credit-related contingent liabilities   |  |               | 143,961   |  |      |   | 149,609   | 
|Due to trust account                                                   |  |               | 944,542   |  |      |   | 718,134   | 
|Payables to brokers, dealers and customers for securities transactions |  |               | 1,757,429 |  |      |   | 1,605,743 | 
|Payables related to credit card services                               |  |               | 522,688   |  |      |   | 503,811   | 
|Obligations from factoring transactions                                |  |               | 452,043   |  |      |   | 411,146   | 
|Retirement benefit liabilities                                         |  |               | 55,509    |  |      |   | 46,514    | 
|Guarantee deposits received                                            |  |               | 561,088   |  |      |   | 240,765   | 
|Others                                                                 |  |               | 1,555,121 |  |      |   | 1,459,468 | 
|                                                                       |  |               |           |  |      |   |           | 
|Total other liabilities                                                |  | ¥             | 6,410,733 |  |      | ¥ | 5,548,965 | 
|                                                                       |  |               |           |  |      |   |           | 



|22 | DEFERRED INCOME TAX
|-- | -------------------

The
changes of net deferred tax assets and liabilities for the fiscal years ended March 31, 2016 and 2015 were as follows:



|                                                               |  |                                     |          |   |      |   |          |  
|-------------------------------------------------------------- |  | ----------------------------------- | -------- | - | ---- | - | -------- | -
|                                                               |  | For the fiscal year ended March 31, |         
|                                                               |  | 2016                                |          |   | 2015 |  
|                                                               |  | (In millions)                       |         
|At beginning of period                                         |  | ¥                                   | (446,305 | ) |      | ¥ | (2,010   | )
|Deferred tax expense                                           |  |                                     | (125,832 | ) |      |   | (87,109  | )
|Deferred tax relating to other comprehensive income:           |  |                                     |          |   |      |   |          |  
|Remeasurements of defined benefit plans reserve                |  |                                     | 48,550   |   |      |   | (58,081  | )
|Available-for-sale financial assets reserve                    |  |                                     | 289,599  |   |      |   | (298,884 | )
|Exchange differences on translating foreign operations reserve |  |                                     | 19,024   |   |      |   | (2,245   | )
|Acquisition and disposal of subsidiaries and businesses        |  |                                     | 702      |   |      |   | (216     | )
|Exchange differences and others                                |  |                                     | (6,312   | ) |      |   | 2,240    |  
|                                                               |  |                                     |          |   |      |   |          |  
|At end of period                                               |  | ¥                                   | (220,574 | ) |      | ¥ | (446,305 | )
|                                                               |  |                                     |          |   |      |   |          |  



F-59



---

##### Table of Contents

The deferred tax assets and liabilities at March 31, 2016 and 2015 were attributable to the
following items:



|                                       |               |              |          |      |  |   |          |  
|-------------------------------------- | ------------- | ------------ | -------- | ---- |  | - | -------- | -
|                                       |               | At March 31, |         
|                                       | 2016          |              |          | 2015 | 
|                                       | (In millions) |             
|Deferred tax assets:                   |               |              |          |     
|Loans and advances                     |               | ¥            | 238,665  |      |  | ¥ | 270,981  |  
|Tax losses carried forward             |               |              | 29,164   |      |  |   | 28,755   |  
|Retirement benefits                    |               |              | 19,796   |      |  |   | 14,228   |  
|Derivative financial instruments       |               |              | 18,024   |      |  |   | 38,252   |  
|Investment securities                  |               |              | 1,329    |      |  |   | 849      |  
|Other deductible temporary differences |               |              | 148,977  |      |  |   | 199,394  |  
|                                       |               |              |          |      |  |   |          |  
|Total deferred tax assets              |               |              | 455,955  |      |  |   | 552,459  |  
|                                       |               |              |          |      |  |   |          |  
|Deferred tax liabilities:              |               |              |          |      |  |   |          |  
|Investment securities                  |               |              | 459,478  |      |  |   | 747,533  |  
|Goodwill and intangible assets         |               |              | 85,759   |      |  |   | 90,012   |  
|Property, plant and equipment          |               |              | 51,039   |      |  |   | 52,919   |  
|Lease transactions                     |               |              | 19,132   |      |  |   | 23,000   |  
|Retirement benefits                    |               |              | 4,054    |      |  |   | 38,012   |  
|Other taxable temporary differences    |               |              | 57,067   |      |  |   | 47,288   |  
|                                       |               |              |          |      |  |   |          |  
|Total deferred tax liabilities         |               |              | 676,529  |      |  |   | 998,764  |  
|                                       |               |              |          |      |  |   |          |  
|Net deferred tax liabilities(1)        |               | ¥            | (220,574 | )    |  | ¥ | (446,305 | )
|                                       |               |              |          |      |  |   |          |  



|(1) | Deferred tax assets and deferred tax liabilities are offset in the consolidated statement of financial position if the entity has a legally enforceable right to set off
current tax assets against current tax liabilities, and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

On March 31, 2014, the Government of Japan promulgated to repeal the Act on Special Measures Concerning Securing Necessary Financial
Resources for Funding the Restoration from the Great East Japan Earthquake, which initially imposed a 10% of corporation surtax, one year earlier than its initial plan. In addition, on March 31, 2014, the Government of Japan promulgated (i) an
amendment to the Local Tax Act and (ii) the Local Corporate Tax Law. Those laws (i) reduce local inhabitant tax by 4.4%, but adversely (ii) impose newly enacted 4.4% local corporation tax. As a result, the effective statutory tax rate (including
local taxes) of SMFG was reduced to 35.6% for the fiscal year beginning April 1, 2014.

On March 31, 2015, the Government of
Japan promulgated (i) an amendment to the Corporation Tax Act and (ii) the Local Tax Act. Those laws (i) reduce the Japanese national corporation tax rate by 1.6 percentage points from the fiscal year beginning April 1, 2015 and (ii) reduce the
enterprise tax rate by 1.2 percentage points from the fiscal year beginning April 1, 2015 and additionally reduce it by 1.2 percentage points from the fiscal year beginning April 1, 2016. As a result, the effective statutory tax rate of SMFG was
33.1% during the fiscal year beginning April 1, 2015 and was expected to be 32.3% for the fiscal years beginning April 1, 2016.

On March 31, 2016, the Government of Japan promulgated (i) an amendment to the Corporation Tax Act and (ii) the Local Tax Act. Those laws
(i) reduce the Japanese national corporation tax rate by 0.5 percentage points from the fiscal year beginning April 1, 2016 and additionally reduce by 0.2 percentage points from the fiscal year beginning April 1, 2018, and (ii) reduce the enterprise
tax rate by 1.2 percentage points from the fiscal year beginning April 1, 2016. As a result, the effective statutory tax rate of SMFG during the two fiscal years beginning April 1, 2016 through March 31, 2018 is further reduced to 30.9% from 32.3%
and is expected to be 30.6% for the fiscal years beginning April 1, 2018. The SMFG Group measured deferred tax assets and liabilities at the rates that were expected to apply to the period when the assets are realized or the liabilities are settled,



F-60



---

##### Table of Contents

based on the tax rate that had been enacted or substantively enacted at March 31, 2016. Accordingly, the tax rate changes in Japan increased deferred tax expense by ¥30 billion for the fiscal
year ended March 31, 2016.

The deferred tax assets of the SMFG Group consist mainly of the deferred tax assets of SMBC. The
deferred tax assets of SMBC mainly consisted of deferred tax assets for loans and advances, which were generally related to the accumulated losses from the impairment of these assets which would be deductible for tax purposes in future periods. SMBC
considers that it will be able to use most of the deductible temporary differences based mainly on future taxable profit estimated based on, among other relevant factors, forecasted results of operations, which are based on historical financial
performance and the business plans that management believes to be prudent and feasible. In SMFGs other subsidiaries, deferred tax assets relating to tax losses carried forward and deductible temporary differences are recognized only to the
extent that it is probable that future taxable profit will be available against which the tax losses carried forward and the deductible temporary differences can be utilized. No deferred tax assets were recognized in SMFG and certain SMFG
subsidiaries for the tax losses carried forward projected to expire, or for the deductible temporary differences estimated not to be realized due to the uncertainty of sufficient future taxable profit.

The following table shows the amounts of deductible temporary differences and tax losses carried forward by expiration date at March 31,
2016 and 2015 for which no deferred tax assets were recognized.



|                                                                      |  |               |           |  |      |   |           | 
|--------------------------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                                      |  | At March 31,  |          
|                                                                      |  | 2016          |           |  | 2015 |  
|                                                                      |  | (In millions) |          
|Deductible temporary differences                                      |  | ¥             | 422,782   |  |      | ¥ | 576,614   | 
|Tax losses carried forward which will expire in 1 year                |  |               | 2,486     |  |      |   |          | 
|2 years                                                               |  |               | 112,416   |  |      |   | 5,588     | 
|3 years                                                               |  |               | 201,100   |  |      |   | 115,155   | 
|4 years                                                               |  |               | 150,003   |  |      |   | 200,938   | 
|5 years                                                               |  |               | 252,080   |  |      |   | 154,326   | 
|6 years                                                               |  |               | 70,620    |  |      |   | 251,319   | 
|7 years                                                               |  |               | 59,812    |  |      |   | 70,870    | 
|8 years                                                               |  |               | 48,712    |  |      |   | 60,710    | 
|9 years and thereafter                                                |  |               | 38,578    |  |      |   | 40,823    | 
|                                                                      |  |               |           |  |      |   |           | 
|Total deductible temporary differences and tax losses carried forward |  | ¥             | 1,358,589 |  |      | ¥ | 1,476,343 | 
|                                                                      |  |               |           |  |      |   |           | 

In addition to the above table, the SMFG Group does not recognize deferred tax assets for deductible
temporary differences related to investments in subsidiaries, associates and joint ventures where SMFG has no intention to reverse these differences in the foreseeable future. The amount of those deductible temporary differences was ¥1,159
billion and ¥894 billion at March 31, 2016 and 2015, respectively. At March 31, 2014, most of the deductible temporary differences were associated with investments in SMBC, which resulted from a statutory share transfer made at the establishment
of SMFG in December 2002. Since the carrying amount of the investments in SMBC exceeded the tax base, resulting from an increase in SMBCs net assets, there were no deductible temporary differences associated with the investments in SMBC at
March 31, 2016.

At March 31, 2016 and 2015, the amount of taxable temporary differences associated with investments in
subsidiaries, associates and joint ventures for which deferred tax liabilities had not been recognized was ¥1,283 billion and ¥1,583 billion, respectively. SMFG can control the timing of reversal of the temporary differences and it is
probable that they will not be reversed in the foreseeable future.



F-61



---

##### Table of Contents

Deferred tax expense for the fiscal years ended March 31, 2016 and 2015 was attributable to
the following temporary differences and tax losses carried forward:



|                                 |  |                                     |          |   |      |   |         |  
|-------------------------------- |  | ----------------------------------- | -------- | - | ---- | - | ------- | -
|                                 |  | For the fiscal year ended March 31, |         
|                                 |  | 2016                                |          |   | 2015 |  
|                                 |  | (In millions)                       |         
|Derivative financial instruments |  | ¥                                   | (30,588  | ) |      | ¥ | (21,193 | )
|Loans and advances               |  |                                     | (29,582  | ) |      |   | (50,374 | )
|Retirement benefits              |  |                                     | (8,952   | ) |      |   | (8,653  | )
|Goodwill and intangible assets   |  |                                     | 6,064    |   |      |   | 5,023   |  
|Lease transactions               |  |                                     | 3,879    |   |      |   | 1,537   |  
|Tax losses carried forward       |  |                                     | 1,157    |   |      |   | (16,282 | )
|Investment securities            |  |                                     | (1,075   | ) |      |   | (41,035 | )
|Property, plant and equipment    |  |                                     | 228      |   |      |   | (3,638  | )
|Other temporary differencesnet  |  |                                     | (66,963  | ) |      |   | 47,506  |  
|                                 |  |                                     |          |   |      |   |         |  
|Total deferred tax expense       |  | ¥                                   | (125,832 | ) |      | ¥ | (87,109 | )
|                                 |  |                                     |          |   |      |   |         |  



|23 | RETIREMENT BENEFITS
|-- | -------------------

Defined Benefit
Plans

SMBC and some of SMFGs other subsidiaries have various defined benefit plans such as defined benefit pension
plans and lump-sum severance indemnity plans, which define the amount of benefits that an employee will receive on or after retirement, usually based on one or more factors, such as age, years of service, compensation, classes and earned points
based on service.

SMBCs defined benefit plans account for the vast majority of the defined benefit obligations and plan
assets in the SMFG Group. SMBC has a corporate defined benefit pension plan and a lump-sum severance indemnity plan.

Defined benefit pension plans

SMBCs corporate defined benefit pension plan is a funded defined benefit pension plan, which is regulated by the Corporate Defined Benefit Pension Plan Law, one of the Japanese pension laws.
Benefits are paid in exchange for services rendered by employees who worked for more than a specified period considering their years of service and the degree of their contribution to SMBC.

SMBCs pension fund is a special entity established in accordance with the pension laws, and SMBC has an obligation to make
contributions to it. It has a board of directors which consists of an equal number of members elected from both the management and employees of SMBC. These board members have a fiduciary duty to administer and manage the pension fund.

The objective of SMBCs pension fund is to earn a return over the long term which is sufficient to pay future benefits to
participants of the corporate defined benefit pension plan, including pension benefit plans, lump-sum indemnity plans for bereaved families, and other lump sum indemnity plans. To achieve this, SMBCs pension fund annually sets investment
guidelines including asset allocation composed of equities, bonds and other appropriate financial assets according to the funding status. Investment decisions for its assets are made in accordance with these guidelines.

The Corporate Defined Benefit Pension Plan Law requires a pension fund to review the assumptions and remeasure the required contribution
at least every fifth fiscal year, in order to ensure that it maintains sufficient



F-62



---

##### Table of Contents

assets for future benefit payments. On the other hand, the present value of the defined benefit obligation is calculated annually based on actuarial valuations that are dependent upon a number of
assumptions, including discount rates, mortality rates and future salary (benefit) increases, in accordance with IAS 19 Employee Benefits. Other types of defined benefit pension plans operated by the SMFG Group are generally established
and operated in the same manner as described above.

Lump-sum severance indemnity plans

SMBC and some of SMFGs other subsidiaries have lump-sum severance indemnity plans under which their employees are provided with
lump-sum cash payments upon leaving the company. While funding of these plans is not required under Japanese pension laws, some of these plans are funded with assets held by retirement benefit trusts.

SMBC and a number of SMFGs other subsidiaries in Japan established retirement benefit trusts and contributed some of their
marketable securities to these trusts in order to isolate these assets for retirement benefits by entering into contracts with trust banks. Retirement benefit trusts are voluntary funds that are used either to contribute assets to the pension funds
or to directly settle retirement benefits. Among the SMFG Group, retirement benefit trusts are set up for the defined benefit pension plans, as well as for the lump-sum severance indemnity plans.

The assets belonging to the retirement benefit trusts are available to be used only to pay or fund retirement benefits, and practically
held by an entity that is legally separated from the SMFG Group. Therefore, they are not available to the SMFG Groups creditors even in bankruptcy and cannot be returned to the SMFG Group, unless either the remaining assets are sufficient to
meet all the related obligations or the entities (funds) reimburse to the SMFG Group the retirement benefits which are already paid by the SMFG Group. Therefore, these assets are accounted for as plan assets.

The following tables provide detailed information for the defined benefit plans.

The amounts of the retirement benefit liabilities and the retirement benefit assets recognized in the consolidated statement of financial
position at March 31, 2016 and 2015 were determined as follows:



|                                                                        |  |               |            |   |      |   |            |  
|----------------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | -
|                                                                        |  | At March 31,  |           
|                                                                        |  | 2016          |            |   | 2015 |  
|                                                                        |  | (In millions) |           
|Present value of unfunded obligations                                   |  | ¥             | (43,554    | ) |      | ¥ | (42,004    | )
|Present value of funded obligations                                     |  |               | (1,133,536 | ) |      |   | (1,043,532 | )
|Fair value of plan assets                                               |  |               | 1,354,202  |   |      |   | 1,418,210  |  
|                                                                        |  |               |            |   |      |   |            |  
|Net retirement benefit assets (liabilities)                             |  | ¥             | 177,112    |   |      | ¥ | 332,674    |  
|                                                                        |  |               |            |   |      |   |            |  
|Of which retirement benefit liabilities included in Other liabilities |  | ¥             | (55,509    | ) |      | ¥ | (46,514    | )
|Of which retirement benefit assets included in Other assets           |  | ¥             | 232,621    |   |      | ¥ | 379,188    |  



F-63



---

##### Table of Contents

The movements in the defined benefit obligations for the fiscal years ended March 31, 2016
and 2015 were as follows:



|                                                        |  |                                    |           |   |      |   |           |  
|------------------------------------------------------- |  | ---------------------------------- | --------- | - | ---- | - | --------- | -
|                                                        |  | For the fiscal year endedMarch 31, |          
|                                                        |  | 2016                               |           |   | 2015 |  
|                                                        |  | (In millions)                      |          
|At beginning of period                                  |  | ¥                                  | 1,085,536 |   |      | ¥ | 1,038,615 |  
|Current service cost                                    |  |                                    | 35,032    |   |      |   | 31,921    |  
|Interest cost                                           |  |                                    | 11,987    |   |      |   | 14,067    |  
|Actuarial lossesdemographic assumptions                |  |                                    | 7,326     |   |      |   | 8,893     |  
|Actuarial lossesfinancial assumptions                  |  |                                    | 75,115    |   |      |   | 33,154    |  
|Actuarial lossesexperience                             |  |                                    | 4,342     |   |      |   | 9,083     |  
|Benefits paid                                           |  |                                    | (42,192   | ) |      |   | (40,949   | )
|Lump-sum payments                                       |  |                                    | (10,543   | ) |      |   | (10,250   | )
|Past service cost                                       |  |                                    | (32       | ) |      |   | 60        |  
|Acquisition and disposal of subsidiaries and businesses |  |                                    | 13,360    |   |      |   | (157      | )
|Others                                                  |  |                                    | (2,841    | ) |      |   | 1,099     |  
|                                                        |  |                                    |           |   |      |   |           |  
|At end of period                                        |  | ¥                                  | 1,177,090 |   |      | ¥ | 1,085,536 |  
|                                                        |  |                                    |           |   |      |   |           |  

The movements in the fair value of plan assets for the fiscal years ended March 31, 2016 and 2015 were as
follows:



|                                                        |  |                                    |           |   |      |   |           |  
|------------------------------------------------------- |  | ---------------------------------- | --------- | - | ---- | - | --------- | -
|                                                        |  | For the fiscal year endedMarch 31, |          
|                                                        |  | 2016                               |           |   | 2015 |  
|                                                        |  | (In millions)                      |          
|At beginning of period                                  |  | ¥                                  | 1,418,210 |   |      | ¥ | 1,160,733 |  
|Interest income                                         |  |                                    | 15,540    |   |      |   | 15,816    |  
|Return on plan assets excluding interest income         |  |                                    | (67,490   | ) |      |   | 232,768   |  
|Contributions by employer                               |  |                                    | 45,305    |   |      |   | 48,963    |  
|Benefits paid                                           |  |                                    | (42,192   | ) |      |   | (40,949   | )
|Lump-sum payments(1)                                    |  |                                    | (24,398   | ) |      |   |          |  
|Acquisition and disposal of subsidiaries and businesses |  |                                    | 12,282    |   |      |   |          |  
|Others                                                  |  |                                    | (3,055    | ) |      |   | 879       |  
|                                                        |  |                                    |           |   |      |   |           |  
|At end of period                                        |  | ¥                                  | 1,354,202 |   |      | ¥ | 1,418,210 |  
|                                                        |  |                                    |           |   |      |   |           |  



|(1) | Lump-sum payments indicate the amount of assets returned to the SMFG Group from the retirement benefit trusts to reimburse the lump-sum payments already paid by the
SMFG group.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The amounts recognized in General and administrative expenses in the consolidated
income statement for the fiscal years ended March 31, 2016, 2015 and 2014 were as follows:



|                     |  |                                     |        |   |      |   |        |      |  |   |        |  
|-------------------- |  | ----------------------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                     |  | For the fiscal year ended March 31, |       
|                     |  | 2016                                |        |   | 2015 |   |        | 2014 | 
|                     |  | (In millions)                       |       
|Current service cost |  | ¥                                   | 35,032 |   |      | ¥ | 31,921 |      |  | ¥ | 32,150 |  
|Net interest cost    |  |                                     | (3,553 | ) |      |   | (1,749 | )    |  |   | 1,326  |  
|Past service cost    |  |                                     | (32    | ) |      |   | 60     |      |  |   | (345   | )
|                     |  |                                     |        |   |      |   |        |      |  |   |        |  
|Total                |  | ¥                                   | 31,447 |   |      | ¥ | 30,232 |      |  | ¥ | 33,131 |  
|                     |  |                                     |        |   |      |   |        |      |  |   |        |  



F-64



---

##### Table of Contents

The plan assets at March 31, 2016 and 2015 were composed as follows:



|                                                       |  |                          |         |  |       |   |         |       |  |   |                          |  |  |       |         |  |       |   |         |  |  |   |           | 
|------------------------------------------------------ |  | ------------------------ | ------- |  | ----- | - | ------- | ----- |  | - | ------------------------ |  |  | ----- | ------- |  | ----- | - | ------- |  |  | - | --------- | 
|                                                       |  | At March 31,             |        
|                                                       |  | 2016                     |         |  | 2015  |  
|                                                       |  | Quoted in active markets |         |  | Other |   |         | Total |  |   | Quoted in active markets |  |  | Other |         |  | Total |  
|                                                       |  | (In millions)            |        
|Plan assets retained in the pension funds:             |  |                          |         |  |       |   |         |       |  |   |                          |  |  |       |         |  |       |   |         |  |  |   |           | 
|Equity instruments                                     |  | ¥                        | 248,717 |  |       | ¥ | 152,768 |       |  | ¥ | 401,485                  |  |  | ¥     | 277,152 |  |       | ¥ | 147,366 |  |  | ¥ | 424,518   | 
|Debt instruments                                       |  |                          | 120,985 |  |       |   | 248,526 |       |  |   | 369,511                  |  |  |       | 148,895 |  |       |   | 154,955 |  |  |   | 303,850   | 
|General account of life insurance companies            |  |                          |        |  |       |   | 60,431  |       |  |   | 60,431                   |  |  |       |        |  |       |   | 58,357  |  |  |   | 58,357    | 
|Other short-term assets                                |  |                          | 30,884  |  |       |   | 30,482  |       |  |   | 61,366                   |  |  |       | 3,635   |  |       |   | 89,177  |  |  |   | 92,812    | 
|Plan assets retained in the retirement benefit trusts: |  |                          |         |  |       |   |         |       |  |   |                          |  |  |       |         |  |       |   |         |  |  |   |           | 
|Japanese equity instruments                            |  |                          | 429,455 |  |       |   | 698     |       |  |   | 430,153                  |  |  |       | 466,875 |  |       |   | 577     |  |  |   | 467,452   | 
|Other short-term assets                                |  |                          | 26,136  |  |       |   | 5,120   |       |  |   | 31,256                   |  |  |       | 374     |  |       |   | 70,847  |  |  |   | 71,221    | 
|                                                       |  |                          |         |  |       |   |         |       |  |   |                          |  |  |       |         |  |       |   |         |  |  |   |           | 
|Total                                                  |  | ¥                        | 856,177 |  |       | ¥ | 498,025 |       |  | ¥ | 1,354,202                |  |  | ¥     | 896,931 |  |       | ¥ | 521,279 |  |  | ¥ | 1,418,210 | 
|                                                       |  |                          |         |  |       |   |         |       |  |   |                          |  |  |       |         |  |       |   |         |  |  |   |           | 

The assets in the pension funds included common stocks issued by the SMFG Group at March 31, 2016 and
2015. The amounts of these stocks were not significant.

The assets in retirement benefit trusts were primarily composed of
Japanese equity instruments. Most of the plan assets held by the SMFG Group are invested in Japanese equity and debt instruments. Accordingly, the SMFG Group may be exposed to market risk arising from the domestic markets.

The SMFG Group retained the voting rights of some of these equity instruments with fair values of ¥385,959 million and ¥422,619
million (28.5% and 29.8% of the total fair values of plan assets) at March 31, 2016 and 2015, respectively. The assets in retirement benefit trusts included common stocks issued by SMFGs subsidiary (The Minato Bank) with a fair value of
¥24,991 million and ¥46,009 million (1.8% and 3.2% of the total fair values of plan assets) at March 31, 2016 and 2015, respectively. The SMFG Group retained the voting rights of these stocks (40.4% of the voting rights of The Minato Bank,
for all periods presented). Refer to Note 47 Principal Subsidiaries for further information.

The principal
actuarial assumptions used at March 31, 2016, 2015 and 2014 were as follows:



|                                             |  |              |     |   |      |  |     |      |  |  |     |  
|-------------------------------------------- |  | ------------ | --- | - | ---- |  | --- | ---- |  |  | --- | -
|                                             |  | At March 31, |    
|                                             |  | 2016         |     |   | 2015 |  |     | 2014 | 
|Discount rates                               |  |              | 0.6 | % |      |  | 1.1 | %    |  |  | 1.4 | %
|Expected rates of salary (benefit) increases |  |              | 5.9 | % |      |  | 6.0 | %    |  |  | 6.4 | %

All assumptions are weighted on the basis of the defined benefit obligations.

The assumptions for future mortality are based on the official mortality table generally used for actuarial assumptions in Japan. Under
the mortality table used at March 31, 2016, 2015 and 2014, the average remaining life expectancy of an individual retiring at age 60 was 23 years, 23 years, and 23 years for males, respectively, and 28 years, 28 years and 28 years for females,
respectively.



F-65



---

##### Table of Contents

The sensitivity analyses of the effect of changes in key assumptions on the defined benefit
obligations at March 31, 2016 and 2015 were as follows:



|                                              |  |                     |         |   |                     |   |         |  
|--------------------------------------------- |  | ------------------- | ------- | - | ------------------- | - | ------- | -
|                                              |  | At March 31,        |        
|                                              |  | 2016                |         |   | 2015                |  
|                                              |  | Increase/(decrease) |         |   | Increase/(decrease) |  
|                                              |  | (In millions)       |        
|Discount rates:                               |  |                     |         |   |                     |   |         |  
|Increase by 50 bps                            |  | ¥                   | (65,424 | ) |                     | ¥ | (57,955 | )
|Decrease by 50 bps                            |  |                     | 73,823  |   |                     |   | 65,095  |  
|Expected rates of salary (benefit) increases: |  |                     |         |   |                     |   |         |  
|Increase by 50 bps                            |  | ¥                   | 90      |   |                     | ¥ | 82      |  
|Decrease by 50 bps                            |  |                     | (88     | ) |                     |   | (80     | )

Each increase and decrease in the table above assumes that only one assumption is changed, with all other
assumptions remaining unchanged. In practice, however, changes in multiple assumptions may occur in a mutually interrelated manner.

The weighted average durations of defined benefit plans for the fiscal years ended March 31, 2016, 2015 and 2014 were as follows:



|                                   |  |              |      |  |         |  |      |      |  |  |      | 
|---------------------------------- |  | ------------ | ---- |  | ------- |  | ---- | ---- |  |  | ---- | 
|                                   |  | At March 31, |     
|                                   |  | 2016         |      |  | 2015    |  |      | 2014 | 
|                                   |  |              |      |  | (Years) |  |      |      | 
|Lump-sum severance indemnity plans |  |              | 12.8 |  |         |  | 12.0 |      |  |  | 12.1 | 
|Defined benefit pension plans      |  |              | 17.6 |  |         |  | 17.2 |      |  |  | 16.6 | 

Funding Policy for Plan Assets

The pension funds review the funding status of plan assets every year. If any funding deficit is identified, a measure to cover such
deficit will be implemented, for example, by increasing the amount of contributions by the employer.

Expected
contribution

Expected contributions to the defined benefit plans for the fiscal year ending March 31, 2017 are
¥46,372 million.

Defined Contribution Plans

Some of SMFGs subsidiaries provide defined contribution plans. The amounts recognized as expenses for the defined contribution plans were ¥7,258 million, ¥6,463 million and ¥5,936
million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively, which were included in General and administrative expenses in the consolidated income statement.

Employees Pension Insurance Plan

In Japan, the Government of Japan
operates the Employees Pension Insurance Plan which covers most of the private entities employees. The amounts of contributions charged to expense for the Employees Pension Insurance Plan were ¥40,173 million, ¥37,574
million and ¥33,849 million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively, which were included in General and administrative expenses in the consolidated income statement.



F-66



---

##### Table of Contents

|24 | SHAREHOLDERS EQUITY
|-- | --------------------

Common
Stock

The changes in the number of issued shares of common stock and common stock held by SMFG or its subsidiaries during
the fiscal years ended March 31, 2016, 2015 and 2014 were as follows:



|                       |  |                                     |               |  |             |  |            |             |  |  |               |  |  |             |            |  |             |  |               |  |  |  |             |     
|---------------------- |  | ----------------------------------- | ------------- |  | ----------- |  | ---------- | ----------- |  |  | ------------- |  |  | ----------- | ---------- |  | ----------- |  | ------------- |  |  |  | ----------- | ----
|                       |  | For the fiscal year ended March 31, |              
|                       |  | 2016                                |               |  | 2015        |  |            | 2014        | 
|                       |  | Outstanding                         |               |  | In treasury |  |            | Outstanding |  |  | In treasury   |  |  | Outstanding |            |  | In treasury | 
|At beginning of period |  |                                     | 1,414,055,625 |  |             |  | 46,814,201 |             |  |  | 1,414,055,625 |  |  |             | 46,781,669 |  |             |  | 1,414,055,625 |  |  |  | 60,179,376  |     
|Net change             |  |                                     |              |  |             |  | 16,681     |             |  |  |              |  |  |             | 32,532     |  |             |  |              |  |  |  | (13,397,707 | )(1)
|                       |  |                                     |               |  |             |  |            |             |  |  |               |  |  |             |            |  |             |  |               |  |  |  |             |     
|At end of period       |  |                                     | 1,414,055,625 |  |             |  | 46,830,882 |             |  |  | 1,414,055,625 |  |  |             | 46,814,201 |  |             |  | 1,414,055,625 |  |  |  | 46,781,669  |     
|                       |  |                                     |               |  |             |  |            |             |  |  |               |  |  |             |            |  |             |  |               |  |  |  |             |     



|(1) | Includes a decrease of 13,498,040 shares through the sale of SMFG shares held by SMBC and other subsidiary.
|--- | -----------------------------------------------------------------------------------------------------------

The total number of authorized shares of common stock was 3,000 million at March 31, 2016 and 2015 with no stated value. All issued
shares are fully paid. The details of the stock options outstanding to subscribe for shares of SMFG common stock are described in Note 39 Share-Based Payment.

Preferred Stock

The following table shows the number of shares of
preferred stock at March 31, 2016 and 2015.



|                       |  |                   |         |  |                   |  |   |            |  |  |         |  |  |  |   | 
|---------------------- |  | ----------------- | ------- |  | ----------------- |  | - | ---------- |  |  | ------- |  |  |  | - | 
|                       |  | At March 31, 2016 |         |  | At March 31, 2015 | 
|                       |  | Authorized        |         |  | Issued            |  |   | Authorized |  |  | Issued  | 
|Type 5 preferred stock |  |                   | 167,000 |  |                   |  |  |            |  |  | 167,000 |  |  |  |  | 
|Type 7 preferred stock |  |                   | 167,000 |  |                   |  |  |            |  |  | 167,000 |  |  |  |  | 
|Type 8 preferred stock |  |                   | 115,000 |  |                   |  |  |            |  |  | 115,000 |  |  |  |  | 
|Type 9 preferred stock |  |                   | 115,000 |  |                   |  |  |            |  |  | 115,000 |  |  |  |  | 

All the preferred stocks have no stated value. There was no movement in preferred stock during the fiscal
years ended March 31, 2016, 2015 and 2014.

Capital stock, Capital surplus and Treasury stock

Capital stock represents share capital under the Companies Act adjusted by the amount corresponding to the preferred stock
which is accounted for as a liability under IFRS. Purchases of treasury stock are recognized at cost in Treasury stock. Any additional paid-in capital, net gains or losses on the sale of treasury stock, and other changes in equity
resulting from transactions with shareholders except for dividends are included in Capital surplus.

Restriction on the Payment
of Dividends

The amount of the capital surplus and retained earnings of SMFG that can be paid out as dividends is subject
to restrictions under the Companies Act. These amounts are calculated based on SMFGs nonconsolidated statement of financial position prepared in accordance with Japanese GAAP. Therefore, the adjustments made to prepare the IFRS consolidated
financial statements have no impact on the calculation. The total amount that SMFG can pay out as a dividend was ¥1,373 billion at March 31, 2016.

Other than the restriction by the Companies Act, SMFG is required to maintain a risk-weighted capital ratio as per the Banking Act of Japan (Banking Act). The detail of the restriction is
described in Note 45 Financial Risk Management. Therefore, SMFG would not be able to pay a dividend if the ratio were to fall below the minimum amount as a result of the payment of the dividends.



F-67



---

##### Table of Contents

Since SMFG is a holding company, its earnings rely mostly on dividend income from SMBC, and
SMFGs other subsidiaries and associates. SMBC is subject to some restrictions on its dividend payment by the Companies Act and the Banking Act, similar to those applied to SMFG.

Other Reserves

Remeasurements of defined benefit plans reserve

Remeasurements of the defined benefit plans reserve includes the accumulated actuarial gains and losses arising from
experience adjustments and changes in actuarial assumptions, and return on plan assets excluding interest income.

The
movements of remeasurements of the defined benefit plans reserve for the fiscal years ended March 31, 2016, 2015 and 2014 were as follows:



|                                                                            |  |                                     |          |   |      |   |         |      |  |   |          |  
|--------------------------------------------------------------------------- |  | ----------------------------------- | -------- | - | ---- | - | ------- | ---- |  | - | -------- | -
|                                                                            |  | For the fiscal year ended March 31, |         
|                                                                            |  | 2016                                |          |   | 2015 |   |         | 2014 | 
|                                                                            |  | (In millions)                       |         
|At beginning of period                                                      |  | ¥                                   | 120,316  |   |      | ¥ | (1,982  | )    |  | ¥ | (138,013 | )
|Gains (losses) arising during the period, before tax                        |  |                                     | (154,273 | ) |      |   | 181,638 |      |  |   | 214,242  |  
|Income tax (expense) benefit for changes arising during the period          |  |                                     | 48,550   |   |      |   | (58,081 | )    |  |   | (76,596  | )
|Amount attributable to non-controlling interests                            |  |                                     | 3,834    |   |      |   | (1,451  | )    |  |   | (1,034   | )
|Share of other comprehensive income (loss) of associates and joint ventures |  |                                     | 558      |   |      |   | 192     |      |  |   | (581     | )
|                                                                            |  |                                     |          |   |      |   |         |      |  |   |          |  
|At end of period                                                            |  | ¥                                   | 18,985   |   |      | ¥ | 120,316 |      |  | ¥ | (1,982   | )
|                                                                            |  |                                     |          |   |      |   |         |      |  |   |          |  

Available-for-sale financial assets reserve

The available-for-sale financial assets reserve includes the accumulated gains and losses of available-for-sale financial assets excluding
the amount reclassified to profit or loss when the assets are derecognized or impaired.

The movements of the
available-for-sale financial assets reserve for the fiscal years ended March 31, 2016, 2015 and 2014 were as follows:



|                                                                                   |  |                                     |           |   |      |   |           |      |  |   |           |  
|---------------------------------------------------------------------------------- |  | ----------------------------------- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                                                                                   |  | For the fiscal year ended March 31, |          
|                                                                                   |  | 2016                                |           |   | 2015 |   |           | 2014 | 
|                                                                                   |  | (In millions)                       |          
|At beginning of period                                                             |  | ¥                                   | 2,234,636 |   |      | ¥ | 1,397,450 |      |  | ¥ | 1,159,215 |  
|Gains (losses) arising during the period, before tax                               |  |                                     | (551,572  | ) |      |   | 1,392,139 |      |  |   | 589,766   |  
|Income tax (expense) benefit for changes arising during the period                 |  |                                     | 217,723   |   |      |   | (381,512  | )    |  |   | (214,636  | )
|Reclassification adjustments for (gains) losses included in net profit, before tax |  |                                     | (217,529  | ) |      |   | (232,281  | )    |  |   | (212,001  | )
|Income tax benefit for reclassification adjustments                                |  |                                     | 71,876    |   |      |   | 82,628    |      |  |   | 80,364    |  
|Amount attributable to non-controlling interests                                   |  |                                     | 2,251     |   |      |   | (25,297   | )    |  |   | (5,507    | )
|Share of other comprehensive income (loss) of associates and joint ventures        |  |                                     | (751      | ) |      |   | 1,509     |      |  |   | 249       |  
|                                                                                   |  |                                     |           |   |      |   |           |      |  |   |           |  
|At end of period                                                                   |  | ¥                                   | 1,756,634 |   |      | ¥ | 2,234,636 |      |  | ¥ | 1,397,450 |  
|                                                                                   |  |                                     |           |   |      |   |           |      |  |   |           |  

Exchange differences on translating foreign operations reserve

Exchange differences on translating the foreign operations reserve includes foreign exchange differences arising from the translation of
the net assets of foreign operations from their functional currencies to the SMFG Groups presentation currency, Japanese yen.



F-68



---

##### Table of Contents

The movements of exchange differences on translating the foreign operations reserve for the
fiscal years ended March 31, 2016, 2015 and 2014 were as follows:



|                                                                                   |  |                                     |          |   |      |   |         |      |  |   |         |  
|---------------------------------------------------------------------------------- |  | ----------------------------------- | -------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                   |  | For the fiscal year ended March 31, |         
|                                                                                   |  | 2016                                |          |   | 2015 |   |         | 2014 | 
|                                                                                   |  | (In millions)                       |         
|At beginning of period                                                             |  | ¥                                   | 404,132  |   |      | ¥ | 151,358 |      |  | ¥ | (50,032 | )
|Gains (losses) arising during the period, before tax                               |  |                                     | (219,904 | ) |      |   | 301,796 |      |  |   | 271,619 |  
|Income tax (expense) benefit for changes arising during the period                 |  |                                     | 19,027   |   |      |   | (3,015  | )    |  |   | (17,967 | )
|Reclassification adjustments for (gains) losses included in net profit, before tax |  |                                     | 8        |   |      |   | (2,164  | )    |  |   | (1,311  | )
|Income tax (expense) benefit for reclassification adjustments                      |  |                                     | (3       | ) |      |   | 770     |      |  |   | 796     |  
|Amount attributable to non-controlling interests                                   |  |                                     | 26,687   |   |      |   | (48,666 | )    |  |   | (46,788 | )
|Share of other comprehensive income (loss) of associates and joint ventures        |  |                                     | (13,611  | ) |      |   | 4,053   |      |  |   | (4,959  | )
|                                                                                   |  |                                     |          |   |      |   |         |      |  |   |         |  
|At end of period                                                                   |  | ¥                                   | 216,336  |   |      | ¥ | 404,132 |      |  | ¥ | 151,358 |  
|                                                                                   |  |                                     |          |   |      |   |         |      |  |   |         |  



|25 | NON-CONTROLLING INTERESTS AND EQUITY ATTRIBUTABLE TO OTHER EQUITY INSTRUMENTS HOLDERS
|-- | -------------------------------------------------------------------------------------

Non-controlling interests

Non-controlling interests at March 31, 2016 and
2015 consisted of the following:



|                                            |  |               |           |  |      |   |           | 
|------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                            |  | At March 31,  |          
|                                            |  | 2016          |           |  | 2015 |  
|                                            |  | (In millions) |          
|Preferred securities issued by subsidiaries |  | ¥             | 961,998   |  |      | ¥ | 1,124,297 | 
|Others                                      |  |               | 575,550   |  |      |   | 557,175   | 
|                                            |  |               |           |  |      |   |           | 
|Total non-controlling interests             |  | ¥             | 1,537,548 |  |      | ¥ | 1,681,472 | 
|                                            |  |               |           |  |      |   |           | 



F-69



---

##### Table of Contents

Preferred securities issued by subsidiaries

Preferred securities issued by subsidiaries consisted of the following:



|                                                                                             |  |                                      |      |               |         |      |  |   |           | 
|-------------------------------------------------------------------------------------------- |  | ------------------------------------ | ---- | ------------- | ------- | ---- |  | - | --------- | 
|                                                                                             |  | Redemption atthe option
of Issuer(1) |      | At March 31,  |        
|                                                                                             |  |                                      | 2016 |               |         | 2015 | 
|                                                                                             |  |                                      |      | (In millions) |        
|SMFG Preferred Capital USD 1 Limited (non-cumulative step-up perpetual preferred securities) |  | January 2017                         |      | ¥             | 73,106  |      |  | ¥ | 77,994    | 
|SMFG Preferred Capital GBP 1 Limited (non-cumulative step-up perpetual preferred securities) |  | January 2017                         |      |               | 11,905  |      |  |   | 13,097    | 
|SMFG Preferred Capital JPY 1 Limited (non-cumulative perpetual preferred securities)         |  | January 2018                         |      |               | 135,000 |      |  |   | 135,000   | 
|SMFG Preferred Capital USD 3 Limited (non-cumulative step-up perpetual preferred securities) |  | July 2018                            |      |               | 152,037 |      |  |   | 162,203   | 
|SMFG Preferred Capital GBP 2 Limited (non-cumulative step-up perpetual preferred securities) |  | January 2029                         |      |               | 40,450  |      |  |   | 44,503    | 
|SMFG Preferred Capital JPY 2 Limited                                                         |  |                                      |      |               |         |      |  |   |           | 
|Series A (non-cumulative step-up perpetual preferred securities)                             |  | January 2019                         |      |               | 113,000 |      |  |   | 113,000   | 
|Series B (non-cumulative perpetual preferred securities)                                     |  | July 2019                            |      |               | 140,000 |      |  |   | 140,000   | 
|Series C (non-cumulative perpetual preferred securities)                                     |  | January 2016                         |      |               |        |      |  |   | 140,000   | 
|Series E (non-cumulative perpetual preferred securities)                                     |  | July 2019                            |      |               | 33,000  |      |  |   | 33,000    | 
|Series F (non-cumulative perpetual preferred securities)                                     |  | January 2016                         |      |               |        |      |  |   | 2,000     | 
|SMFG Preferred Capital JPY 3 Limited                                                         |  |                                      |      |               |         |      |  |   |           | 
|Series A (non-cumulative step-up perpetual preferred securities)                             |  | January 2020                         |      |               | 99,000  |      |  |   | 99,000    | 
|Series B (non-cumulative perpetual preferred securities)                                     |  | January 2020                         |      |               | 164,500 |      |  |   | 164,500   | 
|                                                                                             |  |                                      |      |               |         |      |  |   |           | 
|Preferred securities issued by subsidiaries                                                  |  |                                      |      | ¥             | 961,998 |      |  | ¥ | 1,124,297 | 
|                                                                                             |  |                                      |      |               |         |      |  |   |           | 



|(1) | Subject to the prior approval of the Financial Services Agency of Japan (FSA), preferred securities are redeemable at any dividend payment date on and after
a specific month and the month shown in this column is such a specific month of each preferred security.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Others

Others represent the equity in the SMFG Groups subsidiaries not attributable, directly or indirectly, to the SMFG Group. They were not considered individually material to the SMFG Group at March 31,
2016 and 2015.

Equity attributable to other equity instruments holders

Equity attributable to other equity instruments holders at March 31, 2016 and 2015 consisted of the following:



|                                                              |  |  |  |               |         |  |      |   |   | 
|------------------------------------------------------------- |  |  |  | ------------- | ------- |  | ---- | - | - | 
|                                                              |  |  |  | At March 31,  |        
|                                                              |  |  |  | 2016          |         |  | 2015 |  
|                                                              |  |  |  | (In millions) |        
|Perpetual subordinated bonds                                  |  |  |  | ¥             | 299,895 |  |      | ¥ |  | 
|                                                              |  |  |  |               |         |  |      |   |   | 
|Total equity attributable to other equity instruments holders |  |  |  | ¥             | 299,895 |  |      | ¥ |  | 
|                                                              |  |  |  |               |         |  |      |   |   | 



F-70



---

##### Table of Contents

In July 2015, SMFG issued three series of perpetual subordinated bonds, which amounted to
¥300,000 million in aggregate, raising ¥299,895 million after deducting issuance costs. These bonds are Basel III-compliant Additional Tier 1 capital instruments, and are classified as equity under IFRS.

The bonds bear a fixed rate of interest until the first call date. After the first call date, they will bear floating rate of interest
unless they are redeemed. SMFG may at any time and in its sole discretion, elect to cancel any interest payment. If cancelled, interest payments are non-cumulative and will not increase to compensate for any short-fall in interest payments in any
previous year.

These bonds are undated, have no final maturity date and may be redeemed at SMFGs option, in whole, but
not in part, on the first call date or any interest payment dates thereafter subject to prior confirmation of the FSA.

The
principal amount of the bonds may be written down upon the occurrence of certain trigger events. For example, if the Common Equity Tier 1 capital ratio falls below 5.125% (Capital Ratio Event), the principal amount required to fully
restore the Common Equity Tier 1 capital ratio above 5.125% will be written down.

The principal amount of the bonds which has
been written down due to a Capital Ratio Event may be reinstated at SMFGs option, subject to prior confirmation of the Financial Services Agency of Japan that the Common Equity Tier 1 capital ratio remains at a sufficiently high level after
giving effect to such reinstatement.



|26 | NET INTEREST INCOME
|-- | -------------------

Net
interest income for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                                                         |  |                                     |           |  |               |   |           |      |  |   |           | 
|------------------------------------------------------------------------ |  | ----------------------------------- | --------- |  | ------------- | - | --------- | ---- |  | - | --------- | 
|                                                                         |  | For the fiscal year ended March 31, |          
|                                                                         |  | 2016                                |           |  | 2015          |   |           | 2014 | 
|                                                                         |  |                                     |           |  | (In millions) |   |           |      | 
|Interest income from:                                                    |  |                                     |           |  |               |   |           |      |  |   |           | 
|Deposits with banks                                                      |  | ¥                                   | 40,472    |  |               | ¥ | 41,896    |      |  | ¥ | 37,328    | 
|Call loans and bills bought                                              |  |                                     | 21,828    |  |               |   | 18,606    |      |  |   | 18,142    | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  |                                     | 22,011    |  |               |   | 17,021    |      |  |   | 14,970    | 
|Investment securities                                                    |  |                                     | 84,912    |  |               |   | 82,494    |      |  |   | 85,798    | 
|Loans and advances                                                       |  |                                     | 1,703,361 |  |               |   | 1,622,604 |      |  |   | 1,557,806 | 
|                                                                         |  |                                     |           |  |               |   |           |      |  |   |           | 
|Total interest income                                                    |  |                                     | 1,872,584 |  |               |   | 1,782,621 |      |  |   | 1,714,044 | 
|                                                                         |  |                                     |           |  |               |   |           |      |  |   |           | 
|Interest expense from:                                                   |  |                                     |           |  |               |   |           |      |  |   |           | 
|Deposits                                                                 |  |                                     | 202,312   |  |               |   | 165,567   |      |  |   | 140,390   | 
|Call money and bills sold                                                |  |                                     | 5,583     |  |               |   | 4,014     |      |  |   | 3,483     | 
|Repurchase agreements and cash collateral on securities lent             |  |                                     | 15,105    |  |               |   | 9,920     |      |  |   | 7,547     | 
|Borrowings                                                               |  |                                     | 72,203    |  |               |   | 71,037    |      |  |   | 68,266    | 
|Debt securities in issue                                                 |  |                                     | 135,172   |  |               |   | 119,789   |      |  |   | 100,117   | 
|Others                                                                   |  |                                     | 726       |  |               |   | 780       |      |  |   | 708       | 
|                                                                         |  |                                     |           |  |               |   |           |      |  |   |           | 
|Total interest expense                                                   |  |                                     | 431,101   |  |               |   | 371,107   |      |  |   | 320,511   | 
|                                                                         |  |                                     |           |  |               |   |           |      |  |   |           | 
|Net interest income                                                      |  | ¥                                   | 1,441,483 |  |               | ¥ | 1,411,514 |      |  | ¥ | 1,393,533 | 
|                                                                         |  |                                     |           |  |               |   |           |      |  |   |           | 

Interest income recorded on impaired financial assets was ¥20,545 million, ¥23,478 million and
¥32,638 million for the fiscal years ended March 31, 2016, 2015 and 2014, respectively.



F-71



---

##### Table of Contents

|27 | NET FEE AND COMMISSION INCOME
|-- | -----------------------------

Net fee and commission income for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                 |  |                                     |           |  |               |   |           |      |  |   |           | 
|-------------------------------- |  | ----------------------------------- | --------- |  | ------------- | - | --------- | ---- |  | - | --------- | 
|                                 |  | For the fiscal year ended March 31, |          
|                                 |  | 2016                                |           |  | 2015          |   |           | 2014 | 
|                                 |  |                                     |           |  | (In millions) |   |           |      | 
|Fee and commission income from:  |  |                                     |           |  |               |   |           |      |  |   |           | 
|Loans                            |  | ¥                                   | 121,934   |  |               | ¥ | 103,486   |      |  | ¥ | 109,788   | 
|Credit card business             |  |                                     | 253,136   |  |               |   | 245,133   |      |  |   | 234,060   | 
|Guarantees                       |  |                                     | 55,618    |  |               |   | 51,794    |      |  |   | 45,229    | 
|Securities-related business      |  |                                     | 133,019   |  |               |   | 130,164   |      |  |   | 137,184   | 
|Deposits                         |  |                                     | 14,882    |  |               |   | 14,976    |      |  |   | 18,234    | 
|Remittances and transfers        |  |                                     | 133,110   |  |               |   | 129,465   |      |  |   | 130,864   | 
|Safe deposits                    |  |                                     | 5,511     |  |               |   | 5,748     |      |  |   | 5,832     | 
|Trust fees                       |  |                                     | 3,619     |  |               |   | 2,833     |      |  |   | 2,421     | 
|Investment trusts                |  |                                     | 116,057   |  |               |   | 147,021   |      |  |   | 159,424   | 
|Agency                           |  |                                     | 16,432    |  |               |   | 16,854    |      |  |   | 17,966    | 
|Others                           |  |                                     | 178,362   |  |               |   | 155,292   |      |  |   | 142,167   | 
|                                 |  |                                     |           |  |               |   |           |      |  |   |           | 
|Total fee and commission income  |  |                                     | 1,031,680 |  |               |   | 1,002,766 |      |  |   | 1,003,169 | 
|                                 |  |                                     |           |  |               |   |           |      |  |   |           | 
|Fee and commission expense from: |  |                                     |           |  |               |   |           |      |  |   |           | 
|Remittances and transfers        |  |                                     | 38,358    |  |               |   | 36,669    |      |  |   | 36,413    | 
|Guarantees                       |  |                                     | 3,071     |  |               |   | 3,012     |      |  |   | 1,607     | 
|Others                           |  |                                     | 89,952    |  |               |   | 89,572    |      |  |   | 89,939    | 
|                                 |  |                                     |           |  |               |   |           |      |  |   |           | 
|Total fee and commission expense |  |                                     | 131,381   |  |               |   | 129,253   |      |  |   | 127,959   | 
|                                 |  |                                     |           |  |               |   |           |      |  |   |           | 
|Net fee and commission income    |  | ¥                                   | 900,299   |  |               | ¥ | 873,513   |      |  | ¥ | 875,210   | 
|                                 |  |                                     |           |  |               |   |           |      |  |   |           | 



|28 | NET TRADING INCOME
|-- | ------------------

Net
trading income for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                         |  |                                     |         |   |      |   |          |      |  |   |         |  
|------------------------ |  | ----------------------------------- | ------- | - | ---- | - | -------- | ---- |  | - | ------- | -
|                         |  | For the fiscal year ended March 31, |        
|                         |  | 2016                                |         |   | 2015 |   |          | 2014 | 
|                         |  | (In millions)                       |        
|Interest rate            |  | ¥                                   | 240,763 |   |      | ¥ | 248,372  |      |  | ¥ | 184,859 |  
|Foreign exchange         |  |                                     | 204,349 |   |      |   | (136,708 | )    |  |   | (81,154 | )
|Equity                   |  |                                     | 18,019  |   |      |   | 499      |      |  |   | 10,496  |  
|Credit                   |  |                                     | (2,641  | ) |      |   | 16,970   |      |  |   | 20,983  |  
|Others                   |  |                                     | 2,192   |   |      |   | (1,374   | )    |  |   | 34      |  
|                         |  |                                     |         |   |      |   |          |      |  |   |         |  
|Total net trading income |  | ¥                                   | 462,682 |   |      | ¥ | 127,759  |      |  | ¥ | 135,218 |  
|                         |  |                                     |         |   |      |   |          |      |  |   |         |  

Net trading income includes income and losses from trading assets and liabilities, and derivative
financial instruments.



F-72



---

##### Table of Contents

|29 | NET INCOME FROM FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
|-- | ---------------------------------------------------------------------

Net income from financial assets at fair value through profit or loss for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                                                            |  |                                     |        |  |      |   |        |      |  |   |        | 
|--------------------------------------------------------------------------- |  | ----------------------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                                            |  | For the fiscal year ended March 31, |       
|                                                                            |  | 2016                                |        |  | 2015 |   |        | 2014 | 
|                                                                            |  | (In millions)                       |       
|Net income from debt instruments                                            |  | ¥                                   | 11,311 |  |      | ¥ | 13,123 |      |  | ¥ | 53,142 | 
|Net income from equity instruments                                          |  |                                     | 949    |  |      |   | 9,555  |      |  |   | 5,444  | 
|                                                                            |  |                                     |        |  |      |   |        |      |  |   |        | 
|Total net income from financial assets at fair value through profit or loss |  | ¥                                   | 12,260 |  |      | ¥ | 22,678 |      |  | ¥ | 58,586 | 
|                                                                            |  |                                     |        |  |      |   |        |      |  |   |        | 



|30 | NET INVESTMENT INCOME
|-- | ---------------------

Net investment income for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                                  |               |                                     |         |      |  |   |         |  |  |   |         |  
|------------------------------------------------- | ------------- | ----------------------------------- | ------- | ---- |  | - | ------- |  |  | - | ------- | -
|                                                  |               | For the fiscal year ended March 31, |        
|                                                  | 2016          |                                     |         | 2015 |  |   | 2014    | 
|                                                  | (In millions) |                                    
|Net gain (loss) from disposal of debt instruments |               | ¥                                   | 71,641  |      |  | ¥ | 45,193  |  |  | ¥ | (1,753  | )
|Net gain from disposal of equity instruments      |               |                                     | 175,494 |      |  |   | 190,570 |  |  |   | 225,185 |  
|Dividend income                                   |               |                                     | 128,094 |      |  |   | 135,301 |  |  |   | 108,833 |  
|                                                  |               |                                     |         |      |  |   |         |  |  |   |         |  
|Total net investment income                       |               | ¥                                   | 375,229 |      |  | ¥ | 371,064 |  |  | ¥ | 332,265 |  
|                                                  |               |                                     |         |      |  |   |         |  |  |   |         |  



|31 | OTHER INCOME
|-- | ------------

Other
income for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                                                                |               |                                     |         |      |  |   |         |  |  |   |         | 
|------------------------------------------------------------------------------- | ------------- | ----------------------------------- | ------- | ---- |  | - | ------- |  |  | - | ------- | 
|                                                                                |               | For the fiscal year ended March 31, |        
|                                                                                | 2016          |                                     |         | 2015 |  |   | 2014    | 
|                                                                                | (In millions) |                                    
|Income from operating leases                                                    |               | ¥                                   | 206,561 |      |  | ¥ | 179,632 |  |  | ¥ | 148,211 | 
|Income related to disposal of assets leased                                     |               |                                     | 155,280 |      |  |   | 183,590 |  |  |   | 149,448 | 
|Income related to IT solution services                                          |               |                                     | 33,991  |      |  |   | 35,506  |  |  |   | 41,043  | 
|Gains on disposal of property, plant and equipment, and other intangible assets |               |                                     | 3,714   |      |  |   | 538     |  |  |   | 2,634   | 
|Reversal of impairment losses of investments in associates and joint ventures   |               |                                     | 4,847   |      |  |   |        |  |  |   |        | 
|Gains on step acquisition of subsidiaries                                       |               |                                     | 118     |      |  |   |        |  |  |   | 1,565   | 
|Gains on step acquisition of associates and joint ventures                      |               |                                     | 1,714   |      |  |   | 37,997  |  |  |   |        | 
|Others                                                                          |               |                                     | 90,048  |      |  |   | 88,642  |  |  |   | 86,640  | 
|                                                                                |               |                                     |         |      |  |   |         |  |  |   |         | 
|Total other income                                                              |               | ¥                                   | 496,273 |      |  | ¥ | 525,905 |  |  | ¥ | 429,541 | 
|                                                                                |               |                                     |         |      |  |   |         |  |  |   |         | 



F-73



---

##### Table of Contents

|32 | IMPAIRMENT CHARGES ON FINANCIAL ASSETS
|-- | --------------------------------------

Impairment charges on financial assets for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                                         |               |                                     |         |  |      |   |        |      |  |   |         |  
|-------------------------------------------------------- | ------------- | ----------------------------------- | ------- |  | ---- | - | ------ | ---- |  | - | ------- | -
|                                                         |               | For the fiscal year ended March 31, |        
|                                                         |               | 2016                                |         |  | 2015 |   |        | 2014 | 
|                                                         | (In millions) |                                    
|Loans and advances(1)                                    |               | ¥                                   | 118,750 |  |      | ¥ | 79,552 |      |  | ¥ | (25,806 | )
|Available-for-sale financial assets                      |               |                                     | 29,606  |  |      |   | 10,586 |      |  |   | 11,531  |  
|                                                         |               |                                     |         |  |      |   |        |      |  |   |         |  
|Total impairment charges (reversals) on financial assets |               | ¥                                   | 148,356 |  |      | ¥ | 90,138 |      |  | ¥ | (14,275 | )
|                                                         |               |                                     |         |  |      |   |        |      |  |   |         |  



|(1) | Cross-reference to provision (credit) for loan losses in the table of reconciliation of allowance for loan losses in Note 10 Loans and Advances.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------



|33 | GENERAL AND ADMINISTRATIVE EXPENSES
|-- | -----------------------------------

General and administrative expenses for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                          |      |                                     |           |               |  |   |           |  |  |   |           | 
|----------------------------------------- | ---- | ----------------------------------- | --------- | ------------- |  | - | --------- |  |  | - | --------- | 
|                                          |      | For the fiscal year ended March 31, |          
|                                          | 2016 |                                     |           | 2015          |  |   | 2014      | 
|                                          |      |                                     |           | (In millions) |  |   |           | 
|Personnel expenses                        |      | ¥                                   | 785,547   |               |  | ¥ | 749,480   |  |  | ¥ | 706,376   | 
|Depreciation and amortization             |      |                                     | 157,672   |               |  |   | 146,233   |  |  |   | 137,742   | 
|Rent and lease expenses                   |      |                                     | 117,482   |               |  |   | 116,745   |  |  |   | 113,314   | 
|Building and maintenance expenses         |      |                                     | 13,966    |               |  |   | 10,068    |  |  |   | 8,886     | 
|Supplies expenses                         |      |                                     | 16,628    |               |  |   | 14,865    |  |  |   | 15,482    | 
|Communication expenses                    |      |                                     | 36,634    |               |  |   | 35,126    |  |  |   | 35,017    | 
|Publicity and advertising expenses        |      |                                     | 79,453    |               |  |   | 68,481    |  |  |   | 56,791    | 
|Taxes and dues                            |      |                                     | 76,695    |               |  |   | 67,913    |  |  |   | 57,782    | 
|Outsourcing expenses                      |      |                                     | 91,837    |               |  |   | 91,189    |  |  |   | 88,072    | 
|Premiums for deposit insurance            |      |                                     | 36,175    |               |  |   | 56,789    |  |  |   | 54,532    | 
|Office equipment expenses                 |      |                                     | 47,621    |               |  |   | 47,318    |  |  |   | 40,388    | 
|Others                                    |      |                                     | 246,553   |               |  |   | 217,690   |  |  |   | 208,608   | 
|                                          |      |                                     |           |               |  |   |           |  |  |   |           | 
|Total general and administrative expenses |      | ¥                                   | 1,706,263 |               |  | ¥ | 1,621,897 |  |  | ¥ | 1,522,990 | 
|                                          |      |                                     |           |               |  |   |           |  |  |   |           | 



|34 | OTHER EXPENSES
|-- | --------------

Other
expenses for the fiscal years ended March 31, 2016, 2015 and 2014 consisted of the following:



|                                                                                 |               |                                     |         |      |  |   |         |  |  |   |         | 
|-------------------------------------------------------------------------------- | ------------- | ----------------------------------- | ------- | ---- |  | - | ------- |  |  | - | ------- | 
|                                                                                 |               | For the fiscal year ended March 31, |        
|                                                                                 | 2016          |                                     |         | 2015 |  |   | 2014    | 
|                                                                                 | (In millions) |                                    
|Cost of operating leases                                                         |               | ¥                                   | 95,440  |      |  | ¥ | 87,206  |  |  | ¥ | 72,268  | 
|Cost related to disposal of assets leased                                        |               |                                     | 140,083 |      |  |   | 171,707 |  |  |   | 146,196 | 
|Cost related to IT solution services and IT systems                              |               |                                     | 90,563  |      |  |   | 84,300  |  |  |   | 75,173  | 
|Provision for interest repayment                                                 |               |                                     | 141,024 |      |  |   | 64,195  |  |  |   | 49,764  | 
|Losses on disposal of property, plant and equipment, and other intangible assets |               |                                     | 4,302   |      |  |   | 6,703   |  |  |   | 6,763   | 
|Impairment losses of property, plant and equipment                               |               |                                     | 4,237   |      |  |   | 5,108   |  |  |   | 3,157   | 
|Impairment losses of intangible assets                                           |               |                                     | 1,278   |      |  |   | 4       |  |  |   | 193     | 
|Losses on sale of investments in subsidiaries and associates                     |               |                                     | 24      |      |  |   | 2,221   |  |  |   |        | 
|Impairment losses of investments in associates and joint ventures                |               |                                     | 17,306  |      |  |   | 4,631   |  |  |   | 4,686   | 
|Others                                                                           |               |                                     | 44,706  |      |  |   | 79,539  |  |  |   | 70,580  | 
|                                                                                 |               |                                     |         |      |  |   |         |  |  |   |         | 
|Total other expenses                                                             |               | ¥                                   | 538,963 |      |  | ¥ | 505,614 |  |  | ¥ | 428,780 | 
|                                                                                 |               |                                     |         |      |  |   |         |  |  |   |         | 



F-74



---

##### Table of Contents

|35 | INCOME TAX EXPENSE
|-- | ------------------

The
detail of income tax expense for the fiscal years ended March 31, 2016, 2015 and 2014 was as follows:



|                                                                                              |  |                                     |         |   |      |   |         |      |  |   |         |  
|--------------------------------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                              |  | For the fiscal year ended March 31, |        
|                                                                                              |  | 2016                                |         |   | 2015 |   |         | 2014 | 
|                                                                                              |  | (In millions)                       |        
|Current tax:                                                                                  |  |                                     |         |   |      |   |         |      |  |   |         |  
|Charge for period                                                                             |  | ¥                                   | 247,046 |   |      | ¥ | 322,838 |      |  | ¥ | 288,269 |  
|Deferred tax:                                                                                 |  |                                     |         |   |      |   |         |      |  |   |         |  
|Origination and reversal of temporary differences                                             |  |                                     | 130,072 |   |      |   | 19,378  |      |  |   | 134,121 |  
|Change in the write-down of deferred tax assets on the current fiscal year income tax expense |  |                                     | (34,000 | ) |      |   | (7,240  | )    |  |   | (21,246 | )
|Changes in Japanese corporation tax rates(1)                                                  |  |                                     | 29,760  |   |      |   | 74,971  |      |  |   | 12,932  |  
|                                                                                              |  |                                     |         |   |      |   |         |      |  |   |         |  
|Total deferred tax expense                                                                    |  |                                     | 125,832 |   |      |   | 87,109  |      |  |   | 125,807 |  
|                                                                                              |  |                                     |         |   |      |   |         |      |  |   |         |  
|Total income tax expense                                                                      |  | ¥                                   | 372,878 |   |      | ¥ | 409,947 |      |  | ¥ | 414,076 |  
|                                                                                              |  |                                     |         |   |      |   |         |      |  |   |         |  



|(1) | See Note 22 Deferred Income Tax for further information on changes in Japanese corporation tax rates.
|--- | -------------------------------------------------------------------------------------------------------

The following table shows the reconciliations of the effective income tax rates for the fiscal years ended March 31, 2016, 2015 and 2014.



|                                                                                                                       |  |                                     |           |    |      |   |           |      |  |   |           |   
|---------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------- | --------- | -- | ---- | - | --------- | ---- |  | - | --------- | --
|                                                                                                                       |  | For the fiscal year ended March 31, |          
|                                                                                                                       |  | 2016                                |           |    | 2015 |   |           | 2014 | 
|                                                                                                                       |  | (In millions, except percentages)   |          
|Profit before tax                                                                                                      |  | ¥                                   | 1,325,700 |    |      | ¥ | 1,132,908 |      |  | ¥ | 1,306,312 |   
|Income tax expense                                                                                                     |  |                                     | 372,878   |    |      |   | 409,947   |      |  |   | 414,076   |   
|Effective income tax rate                                                                                              |  |                                     | 28.1      | %  |      |   | 36.2      | %    |  |   | 31.7      | % 
|Statutory tax rate in Japan(1)                                                                                         |  |                                     | 33.1      | %  |      |   | 35.6      | %    |  |   | 38.0      | % 
|Non-Japanese earnings                                                                                                  |  |                                     | (2.7      | %) |      |   | (3.8      | %)   |  |   | (3.6      | %)
|Effect of the change in the write-down of deferred tax assets on the current fiscal year income tax expense            |  |                                     | (2.6      | %) |      |   | (0.6      | %)   |  |   | (1.6      | %)
|Changes in Japanese corporation tax rates                                                                              |  |                                     | 2.2       | %  |      |   | 6.6       | %    |  |   | 1.0       | % 
|Tax impact of share of post-tax (profit) loss in associates and joint ventures                                         |  |                                     | (0.8      | %) |      |   | (0.5      | %)   |  |   | (0.6      | %)
|Nontaxable dividends received                                                                                          |  |                                     | (0.5      | %) |      |   | (2.4      | %)   |  |   | (1.6      | %)
|Tax impact of impairment losses and reversal of impairment losses for investments in associates and joint
venturesnet |  |                                     | 0.3       | %  |      |   | 0.2       | %    |  |   | 0.1       | % 
|Gains on step acquisition of subsidiaries and associates and joint ventures which were not taxable                     |  |                                     |          |    |      |   | (0.1      | %)   |  |   |          |   
|Othersnet                                                                                                             |  |                                     | (0.9      | %) |      |   | 1.2       | %    |  |   |          |   
|                                                                                                                       |  |                                     |           |    |      |   |           |      |  |   |           |   
|Effective income tax rate                                                                                              |  |                                     | 28.1      | %  |      |   | 36.2      | %    |  |   | 31.7      | % 
|                                                                                                                       |  |                                     |           |    |      |   |           |      |  |   |           |   



|(1) | The statutory tax rate in Japan for the fiscal year ended March 31, 2016 is the aggregate of the effective corporation tax rate of 22.5%, the effective local corporate
tax rate of 1.0%, the effective inhabitant tax rate of 3.7% and the effective enterprise tax rate of 5.9%, which is payable by corporate entities on taxable profits under the tax laws in Japan. The effective corporation tax rate was changed from
23.7% and 26.1% which were applied to the fiscal years ended March 31, 2015 and 2014, respectively. The effective inhabitant tax rate and the effective enterprise tax rate were changed from 4.9% and 7.0%, respectively, which were applied to the
fiscal years ended March 31, 2015 and 2014. The effective local corporation tax rate of 1.0% was newly applied to the fiscal year ended March 31, 2016. The statutory tax rate in Japan has been changed from the fiscal year beginning April 1, 2016
reflecting the changes in Japanese corporation tax rates as mentioned in Note 22 Deferred Income Tax.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-75



---

##### Table of Contents

|36 | EARNINGS PER SHARE
|-- | ------------------

The
following table shows the income and share data used in the basic and diluted earnings per share calculations for the fiscal years ended March 31, 2016, 2015 and 2014.



|                                                                                                |  |                                                           |           |   |      |   |           |      |  |   |           |  
|----------------------------------------------------------------------------------------------- |  | --------------------------------------------------------- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                                                                                                |  | For the fiscal year ended March 31,                       |          
|                                                                                                |  | 2016                                                      |           |   | 2015 |   |           | 2014 | 
|                                                                                                |  | (In millions, except number of shares and per share data) |          
|Basic:                                                                                          |  |                                                           |           |   |      |   |           |      |  |   |           |  
|Profit attributable to shareholders of SMFG                                                     |  | ¥                                                         | 843,920   |   |      | ¥ | 614,070   |      |  | ¥ | 766,388   |  
|Weighted average number of common stock in issue (in thousands of shares)                       |  |                                                           | 1,367,229 |   |      |   | 1,367,258 |      |  |   | 1,366,186 |  
|                                                                                                |  |                                                           |           |   |      |   |           |      |  |   |           |  
|                                                                                                |  |                                                           |          
|Basic earnings per share                                                                        |  | ¥                                                         | 617.25    |   |      | ¥ | 449.13    |      |  | ¥ | 560.97    |  
|                                                                                                |  |                                                           |          
|Diluted:                                                                                        |  |                                                           |           |   |      |   |           |      |  |   |           |  
|Profit attributable to the common shareholders of SMFG                                          |  | ¥                                                         | 843,920   |   |      | ¥ | 614,070   |      |  | ¥ | 766,388   |  
|Impact of dilutive potential ordinary shares issued by subsidiaries                             |  |                                                           | (1        | ) |      |   | (1        | )    |  |   | (1        | )
|                                                                                                |  |                                                           |           |   |      |   |           |      |  |   |           |  
|Net profit used to determine diluted earnings per share                                         |  | ¥                                                         | 843,919   |   |      | ¥ | 614,069   |      |  | ¥ | 766,387   |  
|                                                                                                |  |                                                           |           |   |      |   |           |      |  |   |           |  
|Weighted average number of common stock in issue (in thousands of shares)                       |  |                                                           | 1,367,229 |   |      |   | 1,367,258 |      |  |   | 1,366,186 |  
|Adjustments for stock options (in thousands of shares)                                          |  |                                                           | 928       |   |      |   | 816       |      |  |   | 699       |  
|                                                                                                |  |                                                           |           |   |      |   |           |      |  |   |           |  
|Weighted average number of common stock for diluted earnings per share (in thousands of shares) |  |                                                           | 1,368,157 |   |      |   | 1,368,074 |      |  |   | 1,366,885 |  
|                                                                                                |  |                                                           |           |   |      |   |           |      |  |   |           |  
|Diluted earnings per share                                                                      |  | ¥                                                         | 616.83    |   |      | ¥ | 448.86    |      |  | ¥ | 560.68    |  



|37 | TRANSFERS OF FINANCIAL ASSETS
|-- | -----------------------------

In the normal course of business, the SMFG Group transfers financial assets mainly through repurchase agreements, securities lending transactions and securitizations. Depending on the nature of the
transactions, the transfers may either result in financial assets being derecognized or continuing to be recognized on the consolidated statement of financial position.

Full derecognition occurs when the SMFG Group transfers its contractual rights to receive cash flows from financial assets, or retains the contractual rights to receive the cash flows, but assumes a
contractual obligation to pay the cash flows to another party, and transfers substantially all the risks and rewards of ownership, including credit risk, prepayment risk and interest rate risk. Derecognition does not occur when the SMFG Group
retains substantially all the risks and rewards of ownership of the financial assets, where the contractual rights to receive cash flows from the financial assets are transferred, or the rights are retained but obligations to pay the cash flows are
assumed.



F-76



---

##### Table of Contents

The following tables show the carrying amounts and fair values of transferred financial
assets that did not qualify for derecognition and their associated financial liabilities at March 31, 2016 and 2015:



|                                                                         |  |                                                          |                       |  |                    |                 |           |  |        |   |           |  |  |   |        | 
|------------------------------------------------------------------------ |  | -------------------------------------------------------- | --------------------- |  | ------------------ | --------------- | --------- |  | ------ | - | --------- |  |  | - | ------ | 
|                                                                         |  | At March 31, 2016                                        |                      
|                                                                         |  | Repurchase agreements and securities lendingtransactions |                       |  | Loans and advances |                
|                                                                         |  |                                                          | Residential mortgages |  |                    | Corporate loans |           |  | Others |  
|                                                                         |  | (In millions)                                            |                      
|Carrying amount of assets                                                |  | ¥                                                        | 3,779,078             |  |                    | ¥               | 1,278,100 |  |        | ¥ | 1,045,161 |  |  | ¥ | 62,853 | 
|Carrying amount of associated liabilities                                |  |                                                          | 3,793,528             |  |                    |                 | 1,027,050 |  |        |   | 1,041,981 |  |  |   | 49,509 | 
|                                                                         |  |                                                          |                       | 
|For those liabilities that have recourse only to the transferred assets: |  |                                                          |                       |  |                    |                 |           |  |        |   |           |  |  |   |        | 
|Fair value of assets                                                     |  | ¥                                                        |                      |  |                    | ¥               | 1,469,579 |  |        | ¥ | 1,049,491 |  |  | ¥ | 63,584 | 
|Fair value of associated liabilities                                     |  |                                                          |                      |  |                    |                 | 1,099,771 |  |        |   | 1,042,590 |  |  |   | 49,778 | 
|                                                                         |  |                                                          |                       |  |                    |                 |           |  |        |   |           |  |  |   |        | 
|Net position                                                             |  | ¥                                                        |                      |  |                    | ¥               | 369,808   |  |        | ¥ | 6,901     |  |  | ¥ | 13,806 | 
|                                                                         |  |                                                          |                       |  |                    |                 |           |  |        |   |           |  |  |   |        | 
|                                                                         | 
|                                                                         |  | At March 31, 2015                                        |                      
|                                                                         |  | Repurchase agreements and securities lendingtransactions |                       |  | Loans and advances |                
|                                                                         |  |                                                          | Residential mortgages |  |                    | Corporate loans |           |  | Others |  
|                                                                         |  | (In millions)                                            |                      
|Carrying amount of assets                                                |  | ¥                                                        | 5,692,247             |  |                    | ¥               | 1,277,623 |  |        | ¥ | 967,408   |  |  | ¥ | 59,776 | 
|Carrying amount of associated liabilities                                |  |                                                          | 4,525,235             |  |                    |                 | 1,038,648 |  |        |   | 964,022   |  |  |   | 47,105 | 
|                                                                         |  |                                                          |                       | 
|For those liabilities that have recourse only to the transferred assets: |  |                                                          |                       |  |                    |                 |           |  |        |   |           |  |  |   |        | 
|Fair value of assets                                                     |  | ¥                                                        |                      |  |                    | ¥               | 1,465,851 |  |        | ¥ | 971,374   |  |  | ¥ | 60,323 | 
|Fair value of associated liabilities                                     |  |                                                          |                      |  |                    |                 | 1,116,452 |  |        |   | 964,989   |  |  |   | 47,364 | 
|                                                                         |  |                                                          |                       |  |                    |                 |           |  |        |   |           |  |  |   |        | 
|Net position                                                             |  | ¥                                                        |                      |  |                    | ¥               | 349,399   |  |        | ¥ | 6,385     |  |  | ¥ | 12,959 | 
|                                                                         |  |                                                          |                       |  |                    |                 |           |  |        |   |           |  |  |   |        | 

Repurchase Agreements and Securities Lending Transactions

The SMFG Group lends or sells securities under agreements to repurchase them at a predetermined price on a future date. Since
substantially all the risks and rewards of the securities are retained by the SMFG Group, the securities remain on the consolidated statement of financial position and their associated financial liabilities are recorded. The recourse of the
counterparties to their associated financial liabilities is not limited to the underlying securities.

Loans and Advances

The SMFG Group transfers its loans and advances, including residential mortgages and corporate loans, mainly to bankruptcy-remote
structured entities for securitizations whereby the structured entities issue debt securities to the SMFG Group for subordinated tranches and to investors for senior tranches. The investors have only recourse to the underlying financial assets due
to their bankruptcy-remoteness. Since the SMFG Group retains substantially all the risks and rewards of ownership, the transferred financial assets do not qualify for derecognition. The SMFG Group therefore continues to recognize these transferred
financial assets as loans and advances, and recognizes their associated financial liabilities arising from issuing debt securities to investors on the consolidated statement of financial position.



F-77



---

##### Table of Contents

|38 | ASSETS PLEDGED AND RECEIVED AS COLLATERAL
|-- | -----------------------------------------

Assets Pledged

The
carrying amounts of assets pledged as collateral at March 31, 2016 and 2015 were as follows:



|                                                      |  |               |            |  |      |   |            | 
|----------------------------------------------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                                                      |  | At March 31,  |           
|                                                      |  | 2016          |            |  | 2015 |  
|                                                      |  | (In millions) |           
|Cash and deposits with banks                          |  | ¥             | 91,690     |  |      | ¥ | 75,678     | 
|Call loans and bills bought                           |  |               | 433,224    |  |      |   | 478,457    | 
|Trading assets                                        |  |               | 2,544,777  |  |      |   | 1,715,157  | 
|Financial assets at fair value through profit or loss |  |               | 1,570,904  |  |      |   | 1,615,640  | 
|Held-to-maturity investments                          |  |               | 1,991,865  |  |      |   | 3,359,911  | 
|Available-for-sale financial assets                   |  |               | 8,078,808  |  |      |   | 11,307,019 | 
|Loans and advances                                    |  |               | 2,856,201  |  |      |   | 3,088,983  | 
|Property, plant and equipment                         |  |               | 9,557      |  |      |   | 9,970      | 
|Other assets                                          |  |               | 1,072,516  |  |      |   | 622,583    | 
|                                                      |  |               |            |  |      |   |            | 
|Total                                                 |  | ¥             | 18,649,542 |  |      | ¥ | 22,273,398 | 
|                                                      |  |               |            |  |      |   |            | 

The SMFG Group pledges assets as collateral to secure payables under repurchase agreements, securities
lending transactions and securitizations, borrowings or for cash settlements, margins on derivative transactions and certain other purposes. These transactions are conducted under terms that are usual and customary to standard contracts.

Unsecured loaned securities for which the borrowers have the right to sell or repledge were ¥3,785,582 million and
¥5,921,103 million at March 31, 2016 and 2015, respectively.

For the reserve funds with the Bank of Japan and other
reserve deposits for foreign offices maintained by the SMFG Group, refer to Note 5 Cash and Deposits with Banks.

Assets
Received as Collateral

Under certain transactions, including reverse repurchase agreements, securities borrowing, and
discounting of bills, the SMFG Group is permitted to resell or repledge the collateral held in the absence of default by the owner of the collateral. These transactions are conducted under terms that are usual and customary for standard contracts.
The fair values of securities and bills accepted as collateral were ¥11,947,873 million and ¥10,152,888 million at March 31, 2016 and 2015, respectively. As to the securities received in the reverse repurchase agreements and securities
borrowing transactions, the SMFG Group has the obligation to return equivalent securities upon completion of the transactions. The fair value of securities sold or repledged to others was ¥7,369,021 million and ¥5,084,579 million at March
31, 2016 and 2015, respectively.



F-78



---

##### Table of Contents

|39 | SHARE-BASED PAYMENT
|-- | -------------------

SMFG
has introduced compensation-type stock options to directors, corporate auditors, and executive officers of SMFG and SMBC (SMFG Stock Acquisition Rights). This serves as an incentive for them to further contribute to the equity
appreciation and achieve better corporate performance through sharing the benefits and risks of the share price performance with the shareholders. The following table provides an overview of the significant terms and conditions of the stock option
plan.



|                              |  |                                                                       |  |                                                                                   |  |                                                                                                                                                            |  |                     
|----------------------------- |  | --------------------------------------------------------------------- |  | --------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------
|                              |  | Title of grantees                                                     |  | Exercise period                                                                   |  | Requisite service
period                                                                                                                                   |  | Method of settlement
|SMFG Stock Acquisition Rights |  | Directors, corporate auditors and executive officers of SMFG and SMBC |  | Not exceeding 30 years from the date of allocation of stock acquisition rights(1) |  | One year from the date of the ordinary general meeting of shareholders of SMFG to the closing of the next ordinary general meeting of shareholders of SMFG |  | Common stock of SMFG



|(1) | A stock acquisition rights holder can exercise the rights from the day they are relieved of their positions either as a director, a corporate auditor or an executive
officer (Start of Exercise Date) to 20 years from the Start of Exercise Date.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The number and the
weighted average exercise prices of stock options for the fiscal years ended on March 31, 2016 and 2015 were as follows:



|                                   |  |                                     |         |   |                               |   |   |                      |  |  |                               |   |  |   |   | 
|---------------------------------- |  | ----------------------------------- | ------- | - | ----------------------------- | - | - | -------------------- |  |  | ----------------------------- | - |  | - | - | 
|                                   |  | For the fiscal year ended March 31, |        
|                                   |  | 2016                                |         |   | 2015                          |  
|                                   |  | Number 
ofoptions(1)                |         |   | Weightedaverageexercise price |   |   | Number 
ofoptions(1) |  |  | Weightedaverageexercise price |  
|Outstanding at beginning of period |  |                                     | 873,200 |   |                               | ¥ | 1 |                      |  |  | 752,800                       |   |  | ¥ | 1 | 
|Granted                            |  |                                     | 132,400 |   |                               |   | 1 |                      |  |  | 121,900                       |   |  |   | 1 | 
|Exercised                          |  |                                     | (20,400 | ) |                               |   | 1 |                      |  |  | (1,200                        | ) |  |   | 1 | 
|Forfeited or expired               |  |                                     | (800    | ) |                               |   | 1 |                      |  |  | (300                          | ) |  |   | 1 | 
|                                   |  |                                     |         |   |                               |   |   |                      |  |  |                               |   |  |   |   | 
|Outstanding at end of period       |  |                                     | 984,400 |   |                               | ¥ | 1 |                      |  |  | 873,200                       |   |  | ¥ | 1 | 
|                                   |  |                                     |         |   |                               |   |   |                      |  |  |                               |   |  |   |   | 
|Exercisable at end of period       |  |                                     | 346,300 |   |                               | ¥ | 1 |                      |  |  | 217,800                       |   |  | ¥ | 1 | 



|(1) | Number of options is the number of SMFGs common stock granted by the exercise of stock options.
|--- | ------------------------------------------------------------------------------------------------

The weighted average stock price at the date of exercise was ¥4,361 and ¥4,084 for the fiscal years ended March 31, 2016 and
2015, respectively.

Summarized information about stock options outstanding at March 31, 2016 and 2015 was as follows:



|                              |  |               |   |  |                  |  |         |                                    |  |  |                  |  |  |                                    |         |  |  |  |      | 
|----------------------------- |  | ------------- | - |  | ---------------- |  | ------- | ---------------------------------- |  |  | ---------------- |  |  | ---------------------------------- | ------- |  |  |  | ---- | 
|                              |  |               |   |  | At March 31,     | 
|                              |  |               |   |  | 2016             |  |         | 2015                               | 
|                              |  | Exerciseprice |   |  | Number ofoptions |  |         | Remainingcontractual livesin years |  |  | Number ofoptions |  |  | Remainingcontractual livesin years |        
|SMFG Stock Acquisition Rights |  | ¥             | 1 |  |                  |  | 984,400 |                                    |  |  | 26.7             |  |  |                                    | 873,200 |  |  |  | 27.3 | 

The amounts of stock options recognized as expenses were measured based on the fair value of stock
options granted, which were ¥595 million and ¥451 million for the fiscal years ended March 31, 2016 and 2015, respectively, and included in General and administrative expenses in the consolidated income statement. The fair value
of stock options was measured using Black-Scholes option-pricing model.



F-79



---

##### Table of Contents

The following table represents the fair value of stock options and the assumptions used to
measure the fair value.



|                                       |  |                                     |       |   |      |   |       |  
|-------------------------------------- |  | ----------------------------------- | ----- | - | ---- | - | ----- | -
|                                       |  | For the fiscal year ended March 31, |      
|                                       |  | 2016                                |       |   | 2015 |  
|Fair value at measurement date         |  | ¥                                   | 4,904 |   |      | ¥ | 3,661 |  
|Stock price                            |  | ¥                                   | 5,473 |   |      | ¥ | 4,115 |  
|Exercise price                         |  | ¥                                   | 1     |   |      | ¥ | 1     |  
|Expected volatility(1)                 |  |                                     | 27.38 | % |      |   | 28.16 | %
|Expected remaining lives (in years)(2) |  |                                     | 4     |   |      |   | 4     |  
|Expected dividends per share(3)        |  | ¥                                   | 150   |   |      | ¥ | 120   |  
|Risk free interest rate(4)             |  |                                     | 0.05  | % |      |   | 0.11  | %



|(1) | Calculated based on the actual stock prices during the 4 years from August 19, 2011 to August 18, 2015 and August 16, 2010 to August 15, 2014 for the fiscal years ended
March 31, 2016 and 2015, respectively.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | The average expected remaining life could not be estimated rationally due to insufficient amount of data. Therefore, it was estimated based on average remaining service
life of directors of SMFG and SMBC.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Expected dividends are based on the estimated dividends to be paid in next twelve months from the date of grant.
|--- | ----------------------------------------------------------------------------------------------------------------

|(4) | Japanese government bond yield corresponding to the average expected remaining life.
|--- | ------------------------------------------------------------------------------------



|40 | DIVIDENDS PER SHARE
|-- | -------------------

The
dividends recognized by the SMFG Group for the fiscal years ended March 31, 2016, 2015 and 2014 were as follows:



|                                          |  |                     |     |  |                  |   |         | 
|----------------------------------------- |  | ------------------- | --- |  | ---------------- | - | ------- | 
|                                          |  | Dividends per share |     |  | Aggregate amount |  
|                                          |  | (In yen)            |     |  | (In millions)    |  
|For the fiscal year ended March 31, 2016: |  |                     |     |  |                  |   |         | 
|Common stock                              |  | ¥                   | 155 |  |                  | ¥ | 211,922 | 
|For the fiscal year ended March 31, 2015: |  |                     |     |  |                  |   |         | 
|Common stock                              |  | ¥                   | 125 |  |                  | ¥ | 170,908 | 
|For the fiscal year ended March 31, 2014: |  |                     |     |  |                  |   |         | 
|Common stock                              |  | ¥                   | 125 |  |                  | ¥ | 169,973 | 

SMFG proposed to the shareholders the distribution of a dividend of ¥75 per share of common stock
totaling ¥105,753 million in respect of the fiscal year ended March 31, 2016. The amount includes ¥3,212 million of dividends distributed to SMFGs subsidiary. The dividend is subject to the approval at the general meeting of
shareholders on June 29, 2016. The consolidated financial statements for the fiscal year ended March 31, 2016 do not include this dividend.



|41 | CONTINGENCY AND CAPITAL COMMITMENTS
|-- | -----------------------------------

Legal Proceedings

The
SMFG Group is engaged in various legal proceedings in Japan and a number of overseas jurisdictions, involving claims by and against it, which arise in the normal course of business. The SMFG Group does not expect that the outcome of these
proceedings will have a significant adverse effect on the consolidated financial statements of the SMFG Group. The SMFG Group has recorded adequate provisions with respect to litigation arising out of normal business operations. The SMFG Group has
not disclosed any contingent liability associated with these legal actions because it cannot reliably be estimated.

Capital Commitments

At March 31, 2016 and 2015, the SMFG Group had ¥2,798,483 million and ¥2,801,802 million, respectively, of
contractual commitments to acquire property, plant and equipment including aircraft for leasing



F-80



---

##### Table of Contents

business. The contractual commitments to purchase aircraft are based upon fixed price agreements with the manufacturers, an element of which are adjusted for inflation and include price
escalation formulas, but are also subject to agreed price concessions where applicable. In addition, the SMFG Group had ¥1,733 million and ¥2,770 million of contractual commitments to acquire intangible assets, such as software at March 31,
2016 and 2015, respectively. The SMFG Groups management is confident that future net revenues and funding will be sufficient to cover these commitments.

Loan Commitments

Loan commitment contracts on overdrafts and loans are
agreements to lend up to a prescribed amount to customers, as long as there is no violation of any condition established in the contracts. Since many of these loan commitments are expected to expire without being drawn down, the total amount of
unused commitments does not necessarily represent an actual future cash flow requirement. Many of these loan commitments include clauses under which the SMFG Group can reject an application from customers or reduce the contract amounts in cases
where economic conditions change, the SMFG Group needs to secure claims, or some other significant event occurs.

Financial Guarantees and
Other Credit-related Contingent Liabilities

Financial guarantees are contracts that require the issuer to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of the debt instrument. Other credit-related contingent liabilities include performance bonds, which are
contracts that provide compensation if another party fails to perform the contractual obligation.

The table below shows the
nominal amounts of undrawn loan commitments, and financial guarantees and other credit-related contingent liabilities at March 31, 2016 and 2015.



|                                                                     |  |               |            |  |      |   |            | 
|-------------------------------------------------------------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                                                                     |  | At March 31,  |           
|                                                                     |  | 2016          |            |  | 2015 |  
|                                                                     |  | (In millions) |           
|Loan commitments                                                     |  | ¥             | 58,026,597 |  |      | ¥ | 53,665,583 | 
|Financial guarantees and other credit-related contingent liabilities |  |               | 7,349,903  |  |      |   | 7,076,536  | 
|                                                                     |  |               |            |  |      |   |            | 
|Total                                                                |  | ¥             | 65,376,500 |  |      | ¥ | 60,742,119 | 
|                                                                     |  |               |            |  |      |   |            | 



F-81



---

##### Table of Contents

|42 | ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT BASIS
|-- | -----------------------------------------------------------------

After initial recognition, financial assets and liabilities are measured either at fair value or amortized cost, within the measurement categories as defined in IAS 39. The summary of significant
accounting policies in Note 2 describes how these categories of financial assets and liabilities are measured, and how income and expenses are recognized either in profit or loss, or in other comprehensive income. The following tables present
the carrying amounts of the financial assets and liabilities, by category and by line item, of the consolidated statement of financial position.



|                                                                         |  |                                                                    |            |   |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|------------------------------------------------------------------------ |  | ------------------------------------------------------------------ | ---------- | - | --------------------------- | - | --------- | -------------------- |  | - | ---------------------------------- |  |  | --------------------------------------------- | ---------- |  | ----- | - | ----------- |  |  | - | ----------- | 
|                                                                         |  | At March 31, 2016                                                  |           
|                                                                         |  | Financial assets andliabilities at
fair valuethrough profitor loss |            |   | Held-to-maturityinvestments |   |           | Loans andreceivables |  |   | Available-for-salefinancial assets |  |  | Financialliabilitiesmeasured atamortized cost |            |  | Total |  
|                                                                         |  | (In millions)                                                      |           
|Financial assets:                                                        |  |                                                                    |            |   |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Cash and deposits with banks(1)                                          |  | ¥                                                                  | 6,384      |   |                             | ¥ |          |                      |  | ¥ | 43,138,270                         |  |  | ¥                                             |           |  |       | ¥ |            |  |  | ¥ | 43,144,654  | 
|Call loans and bills bought                                              |  |                                                                    |           |   |                             |   |          |                      |  |   | 1,291,366                          |  |  |                                               |           |  |       |   |            |  |  |   | 1,291,366   | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  |                                                                    |           |   |                             |   |          |                      |  |   | 8,236,516                          |  |  |                                               |           |  |       |   |            |  |  |   | 8,236,516   | 
|Trading assets                                                           |  |                                                                    | 3,615,092  |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 3,615,092   | 
|Derivative financial instruments                                         |  |                                                                    | 5,290,825  |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 5,290,825   | 
|Financial assets at fair value through profit or loss                    |  |                                                                    | 1,611,877  |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 1,611,877   | 
|Investment securities(1)                                                 |  |                                                                    | 310        |   |                             |   | 2,267,542 |                      |  |   |                                   |  |  |                                               | 17,597,495 |  |       |   |            |  |  |   | 19,865,347  | 
|Loans and advances(1)                                                    |  |                                                                    | 4,610      |   |                             |   |          |                      |  |   | 88,857,761                         |  |  |                                               |           |  |       |   |            |  |  |   | 88,862,371  | 
|Other financial assets(2)                                                |  |                                                                    |           |   |                             |   |          |                      |  |   | 2,764,315                          |  |  |                                               |           |  |       |   |            |  |  |   | 2,764,315   | 
|                                                                         |  |                                                                    |            |   |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Total                                                                    |  | ¥                                                                  | 10,529,098 |   |                             | ¥ | 2,267,542 |                      |  | ¥ | 144,288,228                        |  |  | ¥                                             | 17,597,495 |  |       | ¥ |            |  |  | ¥ | 174,682,363 | 
|                                                                         |  |                                                                    |            |   |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Financial liabilities:                                                   |  |                                                                    |            |   |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Deposits(1)                                                              |  | ¥                                                                  | 23,697     |   |                             | ¥ |          |                      |  | ¥ |                                   |  |  | ¥                                             |           |  |       | ¥ | 125,917,100 |  |  | ¥ | 125,940,797 | 
|Call money and bills sold                                                |  |                                                                    |           |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 1,220,456   |  |  |   | 1,220,456   | 
|Repurchase agreements and cash collateral on securities lent             |  |                                                                    |           |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 6,839,474   |  |  |   | 6,839,474   | 
|Trading liabilities                                                      |  |                                                                    | 2,197,673  |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 2,197,673   | 
|Derivative financial instruments                                         |  |                                                                    | 5,086,083  |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 5,086,083   | 
|Borrowings(1)                                                            |  |                                                                    | 1,198      |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 9,912,931   |  |  |   | 9,914,129   | 
|Debt securities in issue(1)                                              |  |                                                                    | (8,045     | ) |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 10,837,657  |  |  |   | 10,829,612  | 
|Other financial liabilities(2)                                           |  |                                                                    |           |   |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 5,935,511   |  |  |   | 5,935,511   | 
|                                                                         |  |                                                                    |            |   |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Total                                                                    |  | ¥                                                                  | 7,300,606  |   |                             | ¥ |          |                      |  | ¥ |                                   |  |  | ¥                                             |           |  |       | ¥ | 160,663,129 |  |  | ¥ | 167,963,735 | 
|                                                                         |  |                                                                    |            |   |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 



F-82



---

##### Table of Contents

|                                                                         |  |                                                                    |            |  |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|------------------------------------------------------------------------ |  | ------------------------------------------------------------------ | ---------- |  | --------------------------- | - | --------- | -------------------- |  | - | ---------------------------------- |  |  | --------------------------------------------- | ---------- |  | ----- | - | ----------- |  |  | - | ----------- | 
|                                                                         |  | At March 31, 2015                                                  |           
|                                                                         |  | Financial assets andliabilities at
fair valuethrough profitor loss |            |  | Held-to-maturityinvestments |   |           | Loans andreceivables |  |   | Available-for-salefinancial assets |  |  | Financialliabilitiesmeasured atamortized cost |            |  | Total |  
|                                                                         |  | (In millions)                                                      |           
|Financial assets:                                                        |  |                                                                    |            |  |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Cash and deposits with banks                                             |  | ¥                                                                  |           |  |                             | ¥ |          |                      |  | ¥ | 40,112,783                         |  |  | ¥                                             |           |  |       | ¥ |            |  |  | ¥ | 40,112,783  | 
|Call loans and bills bought                                              |  |                                                                    |           |  |                             |   |          |                      |  |   | 1,326,965                          |  |  |                                               |           |  |       |   |            |  |  |   | 1,326,965   | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  |                                                                    |           |  |                             |   |          |                      |  |   | 7,218,498                          |  |  |                                               |           |  |       |   |            |  |  |   | 7,218,498   | 
|Trading assets                                                           |  |                                                                    | 3,243,185  |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 3,243,185   | 
|Derivative financial instruments                                         |  |                                                                    | 6,471,203  |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 6,471,203   | 
|Financial assets at fair value through profit or loss                    |  |                                                                    | 1,785,684  |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 1,785,684   | 
|Investment securities                                                    |  |                                                                    |           |  |                             |   | 3,396,895 |                      |  |   |                                   |  |  |                                               | 20,842,761 |  |       |   |            |  |  |   | 24,239,656  | 
|Loans and advances(1)                                                    |  |                                                                    | 3,422      |  |                             |   |          |                      |  |   | 86,968,294                         |  |  |                                               |           |  |       |   |            |  |  |   | 86,971,716  | 
|Other financial assets(2)                                                |  |                                                                    |           |  |                             |   |          |                      |  |   | 2,565,725                          |  |  |                                               |           |  |       |   |            |  |  |   | 2,565,725   | 
|                                                                         |  |                                                                    |            |  |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Total                                                                    |  | ¥                                                                  | 11,503,494 |  |                             | ¥ | 3,396,895 |                      |  | ¥ | 138,192,265                        |  |  | ¥                                             | 20,842,761 |  |       | ¥ |            |  |  | ¥ | 173,935,415 | 
|                                                                         |  |                                                                    |            |  |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Financial liabilities:                                                   |  |                                                                    |            |  |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Deposits(1)                                                              |  | ¥                                                                  | 19,043     |  |                             | ¥ |          |                      |  | ¥ |                                   |  |  | ¥                                             |           |  |       | ¥ | 115,814,937 |  |  | ¥ | 115,833,980 | 
|Call money and bills sold                                                |  |                                                                    |           |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 5,873,124   |  |  |   | 5,873,124   | 
|Repurchase agreements and cash collateral on securities lent             |  |                                                                    |           |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 8,820,083   |  |  |   | 8,820,083   | 
|Trading liabilities                                                      |  |                                                                    | 2,193,400  |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 2,193,400   | 
|Derivative financial instruments                                         |  |                                                                    | 6,739,787  |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   |            |  |  |   | 6,739,787   | 
|Borrowings(1)                                                            |  |                                                                    | 900        |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 11,216,152  |  |  |   | 11,217,052  | 
|Debt securities in issue(1)                                              |  |                                                                    | 21,206     |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 11,030,225  |  |  |   | 11,051,431  | 
|Other financial liabilities(2)                                           |  |                                                                    |           |  |                             |   |          |                      |  |   |                                   |  |  |                                               |           |  |       |   | 5,020,005   |  |  |   | 5,020,005   | 
|                                                                         |  |                                                                    |            |  |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 
|Total                                                                    |  | ¥                                                                  | 8,974,336  |  |                             | ¥ |          |                      |  | ¥ |                                   |  |  | ¥                                             |           |  |       | ¥ | 157,774,526 |  |  | ¥ | 166,748,862 | 
|                                                                         |  |                                                                    |            |  |                             |   |           |                      |  |   |                                    |  |  |                                               |            |  |       |   |             |  |  |   |             | 



|(1) | Embedded derivatives, which are separately accounted for, but presented together with the host contract in the consolidated statement of financial position, are
disclosed in this table within the category of Financial assets and liabilities at fair value through profit or loss. Although the separated embedded derivatives may have a positive or a negative fair value, they have been presented in
this table as assets or liabilities to be consistent with the line of the host contract.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Other financial assets and liabilities comprise of those included in other assets and liabilities, which meet the definition of a financial asset and liability.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



F-83



---

##### Table of Contents

|43 | FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
|-- | ----------------------------------------------

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values stated below
represent the best estimates based on a range of methods and assumptions. In determining the fair value of financial assets and liabilities, the SMFG Group gives the highest priority to a quoted market price in an active market. If such prices are
not available, it establishes fair value using valuation techniques. The valuation techniques, if used, make maximum use of observable inputs, and rely as little as possible on unobservable inputs.

Financial Assets and Liabilities Carried at Fair Value

Valuation Process

The SMFG Group undertakes a valuation process
based on its valuation control framework, which governs internal control standards, methodologies and procedures to ensure that the fair values are determined or validated independently of the front office.

The SMFG Group uses valuation techniques commonly used by market participants to price the financial instruments and they have been
demonstrated to provide reliable estimates of prices obtained in actual market transactions. The valuation techniques include the DCF method, option pricing models and reference to the current fair value of another instrument that is substantially
the same. Key adjustments, such as liquidity risk and credit risk adjustments are also taken into account to derive fair values.

Where valuation techniques are used to determine fair values, they are validated and reviewed. In principal subsidiaries, their risk management departments, which are independent from the business units,
review significant valuation methodologies at least once a year, and recalibrate model parameters and inputs by comparing fair values derived from the valuation techniques to the external market data such as broker quotes. Where the data obtained
from third party sources such as brokers and pricing service providers are utilized in determining fair values, those departments also examine those data, taking into account the consistency among the different sources, the aging of the data and
other factors. In addition, accounting departments in those principal subsidiaries are responsible for ensuring that the accounting policies and procedures to determine fair values are in compliance with relevant accounting standards.

Fair Value Hierarchy

Financial assets and liabilities measured at fair value are classified into one of three levels within a fair value hierarchy based on the inputs used in the fair value measurement. The three levels of
the fair value hierarchy are as follows:



| |  |  | quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date (Level 1);
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (Level 2); and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | significant unobservable inputs for the asset or liability (Level 3).
| | - |  | ---------------------------------------------------------------------



F-84



---

##### Table of Contents

The following tables present the carrying amounts of financial assets and liabilities
carried at fair value based on the three levels of the fair value hierarchy at March 31, 2016 and 2015.



|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|----------------------------------------------------------- |  | ----------------- | ---------- |  | ---------- | - | ---------- | ------- |  | - | ------- |  |  | - | ---------- | 
|                                                            |  | At March 31, 2016 |           
|                                                            |  | Level 1(2)        |            |  | Level 2(2) |   |            | Level 3 |  |   | Total   | 
|                                                            |  | (In millions)     |           
|Financial assets:                                           |  |                   |            | 
|Trading assets:                                             |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Debt instruments                                            |  | ¥                 | 2,513,327  |  |            | ¥ | 660,982    |         |  | ¥ |        |  |  | ¥ | 3,174,309  | 
|Equity instruments                                          |  |                   | 440,686    |  |            |   | 97         |         |  |   |        |  |  |   | 440,783    | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total trading assets                                        |  |                   | 2,954,013  |  |            |   | 661,079    |         |  |   |        |  |  |   | 3,615,092  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Derivative financial instruments:                           |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Interest rate derivatives                                   |  |                   | 99,437     |  |            |   | 3,228,377  |         |  |   |        |  |  |   | 3,327,814  | 
|Currency derivatives                                        |  |                   | 17         |  |            |   | 1,899,201  |         |  |   | 51      |  |  |   | 1,899,269  | 
|Equity derivatives                                          |  |                   | 11,992     |  |            |   | 20,697     |         |  |   | 199     |  |  |   | 32,888     | 
|Commodity derivatives                                       |  |                   | 678        |  |            |   | 23,837     |         |  |   |        |  |  |   | 24,515     | 
|Credit derivatives                                          |  |                   |           |  |            |   | 6,339      |         |  |   |        |  |  |   | 6,339      | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total derivative financial instruments                      |  |                   | 112,124    |  |            |   | 5,178,451  |         |  |   | 250     |  |  |   | 5,290,825  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Financial assets at fair value through profit or loss:      |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Debt instruments                                            |  |                   |           |  |            |   | 1,570,904  |         |  |   | 11,667  |  |  |   | 1,582,571  | 
|Equity instruments                                          |  |                   | 1,555      |  |            |   | 157        |         |  |   | 27,594  |  |  |   | 29,306     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total financial assets at fair value through profit or loss |  |                   | 1,555      |  |            |   | 1,571,061  |         |  |   | 39,261  |  |  |   | 1,611,877  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Available-for-sale financial assets:                        |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Japanese government bonds                                   |  |                   | 6,528,575  |  |            |   |           |         |  |   |        |  |  |   | 6,528,575  | 
|U.S. Treasury and other U.S. government agency bonds        |  |                   | 2,246,130  |  |            |   |           |         |  |   |        |  |  |   | 2,246,130  | 
|Other debt instruments                                      |  |                   | 819,353    |  |            |   | 2,753,830  |         |  |   | 2,022   |  |  |   | 3,575,205  | 
|Equity instruments                                          |  |                   | 3,801,218  |  |            |   | 657,351    |         |  |   | 789,326 |  |  |   | 5,247,895  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total available-for-sale financial assets                   |  |                   | 13,395,276 |  |            |   | 3,411,181  |         |  |   | 791,348 |  |  |   | 17,597,805 | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Others(1)                                                   |  |                   |           |  |            |   | 10,994     |         |  |   |        |  |  |   | 10,994     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total                                                       |  | ¥                 | 16,462,968 |  |            | ¥ | 10,832,766 |         |  | ¥ | 830,859 |  |  | ¥ | 28,126,593 | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Financial liabilities:                                      |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Trading liabilities:                                        |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Debt instruments                                            |  | ¥                 | 2,138,362  |  |            | ¥ | 46,046     |         |  | ¥ |        |  |  | ¥ | 2,184,408  | 
|Equity instruments                                          |  |                   | 6,611      |  |            |   | 6,654      |         |  |   |        |  |  |   | 13,265     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total trading liabilities                                   |  |                   | 2,144,973  |  |            |   | 52,700     |         |  |   |        |  |  |   | 2,197,673  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Derivative financial instruments:                           |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Interest rate derivatives                                   |  |                   | 99,163     |  |            |   | 3,177,635  |         |  |   |        |  |  |   | 3,276,798  | 
|Currency derivatives                                        |  |                   |           |  |            |   | 1,714,545  |         |  |   | 46      |  |  |   | 1,714,591  | 
|Equity derivatives                                          |  |                   | 26,512     |  |            |   | 33,438     |         |  |   | 212     |  |  |   | 60,162     | 
|Commodity derivatives                                       |  |                   | 891        |  |            |   | 22,867     |         |  |   |        |  |  |   | 23,758     | 
|Credit derivatives                                          |  |                   |           |  |            |   | 7,640      |         |  |   | 3,134   |  |  |   | 10,774     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total derivative financial instruments                      |  |                   | 126,566    |  |            |   | 4,956,125  |         |  |   | 3,392   |  |  |   | 5,086,083  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Others(1)                                                   |  |                   |           |  |            |   | 15,610     |         |  |   | 1,240   |  |  |   | 16,850     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 
|Total                                                       |  | ¥                 | 2,271,539  |  |            | ¥ | 5,024,435  |         |  | ¥ | 4,632   |  |  | ¥ | 7,300,606  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |         |  |  |   |            | 



F-85



---

##### Table of Contents

|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|----------------------------------------------------------- |  | ----------------- | ---------- |  | ---------- | - | ---------- | ------- |  | - | --------- |  |  | - | ---------- | 
|                                                            |  | At March 31, 2015 |           
|                                                            |  | Level 1(2)        |            |  | Level 2(2) |   |            | Level 3 |  |   | Total     | 
|                                                            |  | (In millions)     |           
|Financial assets:                                           |  |                   |            | 
|Trading assets:                                             |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Debt instruments                                            |  | ¥                 | 1,701,872  |  |            | ¥ | 916,721    |         |  | ¥ |          |  |  | ¥ | 2,618,593  | 
|Equity instruments                                          |  |                   | 624,300    |  |            |   | 292        |         |  |   |          |  |  |   | 624,592    | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total trading assets                                        |  |                   | 2,326,172  |  |            |   | 917,013    |         |  |   |          |  |  |   | 3,243,185  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Derivative financial instruments:                           |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Interest rate derivatives                                   |  |                   | 86,545     |  |            |   | 4,291,689  |         |  |   |          |  |  |   | 4,378,234  | 
|Currency derivatives                                        |  |                   | 181        |  |            |   | 2,014,697  |         |  |   |          |  |  |   | 2,014,878  | 
|Equity derivatives                                          |  |                   | 20,882     |  |            |   | 25,494     |         |  |   | 173       |  |  |   | 46,549     | 
|Commodity derivatives                                       |  |                   | 1,829      |  |            |   | 17,751     |         |  |   |          |  |  |   | 19,580     | 
|Credit derivatives                                          |  |                   |           |  |            |   | 5,606      |         |  |   | 6,356     |  |  |   | 11,962     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total derivative financial instruments                      |  |                   | 109,437    |  |            |   | 6,355,237  |         |  |   | 6,529     |  |  |   | 6,471,203  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Financial assets at fair value through profit or loss:      |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Debt instruments                                            |  |                   |           |  |            |   | 1,615,741  |         |  |   | 38,518    |  |  |   | 1,654,259  | 
|Equity instruments                                          |  |                   | 3,455      |  |            |   | 1,056      |         |  |   | 126,914   |  |  |   | 131,425    | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total financial assets at fair value through profit or loss |  |                   | 3,455      |  |            |   | 1,616,797  |         |  |   | 165,432   |  |  |   | 1,785,684  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Available-for-sale financial assets:                        |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Japanese government bonds                                   |  |                   | 9,389,959  |  |            |   |           |         |  |   |          |  |  |   | 9,389,959  | 
|U.S. Treasury and other U.S. government agency bonds        |  |                   | 2,062,043  |  |            |   |           |         |  |   |          |  |  |   | 2,062,043  | 
|Other debt instruments                                      |  |                   | 1,088,733  |  |            |   | 1,865,627  |         |  |   | 7,086     |  |  |   | 2,961,446  | 
|Equity instruments                                          |  |                   | 4,365,355  |  |            |   | 1,149,156  |         |  |   | 914,802   |  |  |   | 6,429,313  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total available-for-sale financial assets                   |  |                   | 16,906,090 |  |            |   | 3,014,783  |         |  |   | 921,888   |  |  |   | 20,842,761 | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Others(1)                                                   |  |                   |           |  |            |   | 3,422      |         |  |   |          |  |  |   | 3,422      | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total                                                       |  | ¥                 | 19,345,154 |  |            | ¥ | 11,907,252 |         |  | ¥ | 1,093,849 |  |  | ¥ | 32,346,255 | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Financial liabilities:                                      |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Trading liabilities:                                        |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Debt instruments                                            |  | ¥                 | 2,124,548  |  |            | ¥ | 50,765     |         |  | ¥ |          |  |  | ¥ | 2,175,313  | 
|Equity instruments                                          |  |                   | 18,087     |  |            |   |           |         |  |   |          |  |  |   | 18,087     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total trading liabilities                                   |  |                   | 2,142,635  |  |            |   | 50,765     |         |  |   |          |  |  |   | 2,193,400  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Derivative financial instruments:                           |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Interest rate derivatives                                   |  |                   | 96,889     |  |            |   | 4,318,270  |         |  |   |          |  |  |   | 4,415,159  | 
|Currency derivatives                                        |  |                   |           |  |            |   | 2,231,160  |         |  |   |          |  |  |   | 2,231,160  | 
|Equity derivatives                                          |  |                   | 28,684     |  |            |   | 40,190     |         |  |   |          |  |  |   | 68,874     | 
|Commodity derivatives                                       |  |                   | 2,466      |  |            |   | 16,999     |         |  |   |          |  |  |   | 19,465     | 
|Credit derivatives                                          |  |                   |           |  |            |   | 5,129      |         |  |   |          |  |  |   | 5,129      | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total derivative financial instruments                      |  |                   | 128,039    |  |            |   | 6,611,748  |         |  |   |          |  |  |   | 6,739,787  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Others(1)                                                   |  |                   |           |  |            |   | 39,937     |         |  |   | 1,212     |  |  |   | 41,149     | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 
|Total                                                       |  | ¥                 | 2,270,674  |  |            | ¥ | 6,702,450  |         |  | ¥ | 1,212     |  |  | ¥ | 8,974,336  | 
|                                                            |  |                   |            |  |            |   |            |         |  |   |           |  |  |   |            | 



|(1) | Embedded derivatives are separately accounted for, but presented together with the host contract in the consolidated statement of financial position. In this table, the
embedded derivatives whose host contracts are carried at amortized cost are presented within Others, while the remaining are presented within the same category as the host contract. Although the separated embedded derivatives may have a positive or
a negative fair value, they have been presented in this table as assets or liabilities to be consistent with the host contract. The separated embedded derivatives are measured at fair value using the valuation techniques described in
Derivative financial instruments below.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the period. There were no significant transfers between Level 1 and
Level 2 for the fiscal years ended March 31, 2016 and 2015.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-86



---

##### Table of Contents

The following tables present reconciliations from the beginning to the ending balances for
financial assets and liabilities carried at fair value and categorized within Level 3 of the fair value hierarchy for the fiscal years ended March 31, 2016 and 2015.



|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|----------------------------------------------------------- |  | ------------------------- | --------- | - | ----------------------------------- | - | ------ | ------------ |  | - | ------- | - |  | ----------------- | ------- |  | ------------------------ | - | ------- | -------------------------- |  | - | ---------------- | - |  | ------------------------------------------------------------------------------------------------------------------- | --- |  |  | - | ------- | - |  | - | --------- | - |  | - | ------- | -
|                                                            |  | At April 1,2015           |           |   | Total gains (losses)                |   |        | Purchases    |  |   | Sales   |   |  | Settlements(1)    |         |  | Transfers intoLevel 3(3) |   |         | Transfers outof Level 3(3) |  |   | At March 31,2016 |   |  | Changes inunrealized gains(losses) included inprofit 
or loss relatedto assetsand liabilities held atMarch 31, 2016 |    
|                                                            |  | Included inprofit or loss |           |   | Included inothercomprehensiveincome |   |        |              |  |   |         |   | 
|                                                            |  | (In millions)             |          
|Derivative financial instrumentsnet:                       |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Currency derivativesnet                                    |  | ¥                         |          |   |                                     | ¥ | 44     |              |  | ¥ |        |   |  | ¥                 |        |  |                          | ¥ | (39     | )                          |  | ¥ |                 |   |  | ¥                                                                                                                   |    |  |  | ¥ |        |   |  | ¥ | 5         |   |  | ¥ | 43      |  
|Equity derivativesnet                                      |  |                           | 173       |   |                                     |   | 253    |              |  |   |        |   |  |                   | 82      |  |                          |   | (521    | )                          |  |   |                 |   |  |                                                                                                                     |    |  |  |   |        |   |  |   | (13       | ) |  |   | 278     |  
|Credit derivativesnet                                      |  |                           | 6,356     |   |                                     |   | (1,577 | )            |  |   | 289     |   |  |                   |        |  |                          |   |        |                            |  |   | (8,202           | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   | (3,134    | ) |  |   | (1,577  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total derivative financial instrumentsnet                  |  |                           | 6,529     |   |                                     |   | (1,280 | )            |  |   | 289     |   |  |                   | 82      |  |                          |   | (560    | )                          |  |   | (8,202           | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   | (3,142    | ) |  |   | (1,256  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Financial assets at fair value through profit or loss:      |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Debt instruments                                            |  |                           | 38,518    |   |                                     |   | 6,881  |              |  |   |        |   |  |                   | 195     |  |                          |   | (33,877 | )                          |  |   | (50              | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   | 11,667    |   |  |   | 1,770   |  
|Equity instruments                                          |  |                           | 126,914   |   |                                     |   | (1,146 | )            |  |   |        |   |  |                   | 3,836   |  |                          |   | (1,222  | )                          |  |   | (100,104         | ) |  |                                                                                                                     | 90  |  |  |   | (774    | ) |  |   | 27,594    |   |  |   | (1,140  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total financial assets at fair value through profit or loss |  |                           | 165,432   |   |                                     |   | 5,735  |              |  |   |        |   |  |                   | 4,031   |  |                          |   | (35,099 | )                          |  |   | (100,154         | ) |  |                                                                                                                     | 90  |  |  |   | (774    | ) |  |   | 39,261    |   |  |   | 630     |  
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Available-for-sale financial assets:                        |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Debt instruments                                            |  |                           | 7,086     |   |                                     |   | 14     |              |  |   | (160    | ) |  |                   | 166     |  |                          |   |        |                            |  |   | (5,084           | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   | 2,022     |   |  |   | 15      |  
|Equity instruments                                          |  |                           | 914,802   |   |                                     |   | 28,730 |              |  |   | (80,287 | ) |  |                   | 84,896  |  |                          |   | (62,463 | )                          |  |   | (93,759          | ) |  |                                                                                                                     | 242 |  |  |   | (2,835  | ) |  |   | 789,326   |   |  |   | (9,611  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total available-for-sale financial assets                   |  |                           | 921,888   |   |                                     |   | 28,744 |              |  |   | (80,447 | ) |  |                   | 85,062  |  |                          |   | (62,463 | )                          |  |   | (98,843          | ) |  |                                                                                                                     | 242 |  |  |   | (2,835  | ) |  |   | 791,348   |   |  |   | (9,596  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Others(4)liabilities:                                      |  |                           | (1,212    | ) |                                     |   | (29    | )            |  |   |        |   |  |                   |        |  |                          |   |        |                            |  |   |                 |   |  |                                                                                                                     |    |  |  |   | 1       |   |  |   | (1,240    | ) |  |   | (720    | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total                                                       |  | ¥                         | 1,092,637 |   |                                     | ¥ | 33,170 |              |  | ¥ | (80,158 | ) |  | ¥                 | 89,175  |  |                          | ¥ | (98,122 | )                          |  | ¥ | (207,199         | ) |  | ¥                                                                                                                   | 332 |  |  | ¥ | (3,608  | ) |  | ¥ | 826,227   |   |  | ¥ | (10,942 | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|                                                            |  |                           |           |   |                                     |   |        |              | 
|                                                            |  | At April 1,2014           |           |   | Total gains (losses)                |   |        | Purchases(2) |  |   | Sales   |   |  | Settlements(1)(2) |         |  | Transfers intoLevel 3(3) |   |         | Transfers outof Level 3(3) |  |   | At March 31,2015 |   |  | Changes inunrealized gains(losses) included inprofit 
or loss relatedto assetsand liabilities heldat March 31, 2015 |    
|                                                            |  | Included inprofit or loss |           |   | Included inothercomprehensiveincome |   |        |              |  |   |         |   | 
|                                                            |  | (In millions)             |          
|Trading assets:                                             |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Equity instruments                                          |  | ¥                         | 86,473    |   |                                     | ¥ | 18,504 |              |  | ¥ |        |   |  | ¥                 | 866     |  |                          | ¥ | (4,309  | )                          |  | ¥ | (101,534         | ) |  | ¥                                                                                                                   |    |  |  | ¥ |        |   |  | ¥ |          |   |  | ¥ |        |  
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total trading assets                                        |  |                           | 86,473    |   |                                     |   | 18,504 |              |  |   |        |   |  |                   | 866     |  |                          |   | (4,309  | )                          |  |   | (101,534         | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   |          |   |  |   |        |  
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Derivative financial instrumentsnet:                       |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Interest rate derivativesnet                               |  |                           | 629       |   |                                     |   |       |              |  |   |        |   |  |                   |        |  |                          |   |        |                            |  |   | (629             | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   |          |   |  |   |        |  
|Equity derivativesnet                                      |  |                           | 118       |   |                                     |   | 47     |              |  |   |        |   |  |                   | 25      |  |                          |   |        |                            |  |   |                 |   |  |                                                                                                                     |    |  |  |   | (17     | ) |  |   | 173       |   |  |   | 61      |  
|Credit derivativesnet                                      |  |                           | (2,406    | ) |                                     |   | 17,082 |              |  |   | 226     |   |  |                   |        |  |                          |   |        |                            |  |   | (8,546           | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   | 6,356     |   |  |   | 17,082  |  
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total derivative financial instrumentsnet                  |  |                           | (1,659    | ) |                                     |   | 17,129 |              |  |   | 226     |   |  |                   | 25      |  |                          |   |        |                            |  |   | (9,175           | ) |  |                                                                                                                     |    |  |  |   | (17     | ) |  |   | 6,529     |   |  |   | 17,143  |  
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Financial assets at fair value through profit or loss:      |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Debt instruments                                            |  |                           | 49,611    |   |                                     |   | 7,777  |              |  |   |        |   |  |                   | 50      |  |                          |   |        |                            |  |   | (18,912          | ) |  |                                                                                                                     |    |  |  |   | (8      | ) |  |   | 38,518    |   |  |   | 7,777   |  
|Equity instruments                                          |  |                           | 140,071   |   |                                     |   | (1,471 | )            |  |   |        |   |  |                   | 2,519   |  |                          |   | (442    | )                          |  |   | (7,537           | ) |  |                                                                                                                     | 3   |  |  |   | (6,229  | ) |  |   | 126,914   |   |  |   | (1,603  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total financial assets at fair value through profit or loss |  |                           | 189,682   |   |                                     |   | 6,306  |              |  |   |        |   |  |                   | 2,569   |  |                          |   | (442    | )                          |  |   | (26,449          | ) |  |                                                                                                                     | 3   |  |  |   | (6,237  | ) |  |   | 165,432   |   |  |   | 6,174   |  
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Available-for-sale financial assets:                        |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Debt instruments                                            |  |                           | 9,445     |   |                                     |   | (643   | )            |  |   | 60      |   |  |                   |        |  |                          |   |        |                            |  |   | (1,776           | ) |  |                                                                                                                     |    |  |  |   |        |   |  |   | 7,086     |   |  |   | (465    | )
|Equity instruments                                          |  |                           | 718,624   |   |                                     |   | 3,792  |              |  |   | 62,031  |   |  |                   | 206,887 |  |                          |   | (12,663 | )                          |  |   | (45,908          | ) |  |                                                                                                                     | 9   |  |  |   | (17,970 | ) |  |   | 914,802   |   |  |   | (7,269  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total available-for-sale financial assets                   |  |                           | 728,069   |   |                                     |   | 3,149  |              |  |   | 62,091  |   |  |                   | 206,887 |  |                          |   | (12,663 | )                          |  |   | (47,684          | ) |  |                                                                                                                     | 9   |  |  |   | (17,970 | ) |  |   | 921,888   |   |  |   | (7,734  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Others(4)liabilities:                                      |  |                           |          |   |                                     |   | (1,212 | )            |  |   |        |   |  |                   |        |  |                          |   |        |                            |  |   |                 |   |  |                                                                                                                     |    |  |  |   |        |   |  |   | (1,212    | ) |  |   | (1,212  | )
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  
|Total                                                       |  | ¥                         | 1,002,565 |   |                                     | ¥ | 43,876 |              |  | ¥ | 62,317  |   |  | ¥                 | 210,347 |  |                          | ¥ | (17,414 | )                          |  | ¥ | (184,842         | ) |  | ¥                                                                                                                   | 12  |  |  | ¥ | (24,224 | ) |  | ¥ | 1,092,637 |   |  | ¥ | 14,371  |  
|                                                            |  |                           |           |   |                                     |   |        |              |  |   |         |   |  |                   |         |  |                          |   |         |                            |  |   |                  |   |  |                                                                                                                     |     |  |  |   |         |   |  |   |           |   |  |   |         |  



|(1) | Settlements for equity instruments include redemption of preferred stocks, receipt of cash distributions which represent a return of investment, and reclassification
from available-for-sale equity instruments to investments in associates and joint ventures as a result of applying the equity method.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Financial instruments held by certain consolidated investment funds had been classified as trading assets and categorized within Level 3 until March 31, 2015. These
funds were deconsolidated at March 31, 2015 and investments in the funds are classified as available-for-sale equity instruments categorized within Level 3. The effects of these events are included in settlements of trading assets and purchases of
available-for-sale equity instruments.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-87



---

##### Table of Contents

|(3) | Transfers between levels of the fair value hierarchy are deemed to have occurred at the beginning of the period. For the fiscal year ended March 31, 2016 and 2015,
transfers out of Level 3 amounted to ¥3,608 million and ¥24,224 million, respectively, primarily due to an increase in observability of certain private equity investments.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Embedded derivatives are separately accounted for, but presented together with the host contract in the consolidated statement of financial position. In this table, the
embedded derivatives whose host contracts are carried at amortized cost are presented within Others, while the remaining are presented within the same category as the host contract. Although the separated embedded derivatives may have a positive or
a negative fair value, they have been presented in this table as assets or liabilities to be consistent with the host contract.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following table presents total gains or losses included in profit or loss for the Level 3 financial assets and liabilities, and changes in unrealized gains or losses included in profit or loss related
to those financial assets and liabilities held at March 31, 2016 and 2015 by line item of the consolidated income statement.



|                                                                      |  |                                                                                   |         |   |                                                                                                               |   |        |      |  |   |         |   |  |   |        |  
|--------------------------------------------------------------------- |  | --------------------------------------------------------------------------------- | ------- | - | ------------------------------------------------------------------------------------------------------------- | - | ------ | ---- |  | - | ------- | - |  | - | ------ | -
|                                                                      |  | Total gains (losses)included in profit orloss for the 
fiscal yearended March 31, |         |   | Changes inunrealized gains(losses) included inprofit or
loss relatedto assets andliabilities held atMarch 31, |  
|                                                                      |  | 2016                                                                              |         |   | 2015                                                                                                          |   |        | 2016 |  |   | 2015    |  
|                                                                      |  | (In millions)                                                                     |        
|Net interest income                                                   |  | ¥                                                                                 | 204     |   |                                                                                                               | ¥ | 78     |      |  | ¥ |        |   |  | ¥ |       |  
|Net trading income (loss)                                             |  |                                                                                   | (1,025  | ) |                                                                                                               |   | 33,878 |      |  |   | (1,486  | ) |  |   | 15,466 |  
|Net income from financial assets at fair value through profit or loss |  |                                                                                   | 5,735   |   |                                                                                                               |   | 6,306  |      |  |   | 630     |   |  |   | 6,174  |  
|Net investment income                                                 |  |                                                                                   | 35,424  |   |                                                                                                               |   | 11,201 |      |  |   |        |   |  |   |       |  
|Other income                                                          |  |                                                                                   | 2,939   |   |                                                                                                               |   |       |      |  |   |        |   |  |   |       |  
|Impairment charges on financial assets                                |  |                                                                                   | (10,107 | ) |                                                                                                               |   | (7,587 | )    |  |   | (10,086 | ) |  |   | (7,269 | )
|                                                                      |  |                                                                                   |         |   |                                                                                                               |   |        |      |  |   |         |   |  |   |        |  
|Total                                                                 |  | ¥                                                                                 | 33,170  |   |                                                                                                               | ¥ | 43,876 |      |  | ¥ | (10,942 | ) |  | ¥ | 14,371 |  
|                                                                      |  |                                                                                   |         |   |                                                                                                               |   |        |      |  |   |         |   |  |   |        |  

Valuation Techniques

Financial instruments which are classified as trading assets and liabilities, derivative financial instruments, financial assets at fair
value through profit or loss, and available-for-sale financial assets are measured at fair value in the consolidated statement of financial position. These instruments are measured at fair value using a quoted market price, if they are traded in an
active market, or, for others, using the fair value measurement techniques as discussed below.

Trading assets and trading
liabilities

Debt and equity instruments traded in an active market are measured at fair value using a quoted market price
in such a market and they are categorized within Level 1. If a quoted market price is not available, they are measured by using a price quoted by a third party, such as a pricing service or broker, or by reference to the current fair value of
another instrument that is substantially the same, based on inputs such as prices obtained from brokers, observable interest rates and spreads. These financial instruments are categorized within Level 2. Debt instruments measured at fair value using
the DCF method, where primary inputs are observable interest rates and credit spreads, inferred from the prevailing market rates, are also categorized within Level 2.

Until March 31, 2015, financial instruments held by certain consolidated investment funds classified as trading assets had been measured at fair value determined based on net asset value per share, which
included significant unobservable inputs, and categorized within Level 3. These funds were deconsolidated at March 31, 2015 and investments in the funds are classified as available-for-sale equity instruments categorized within Level 3.



F-88



---

##### Table of Contents

Derivative financial instruments (including embedded derivatives)

Listed derivatives (including interest rates, bonds, currencies, stocks and commodities) are measured at fair value using the settlement
price announced by the major exchange on which transactions are traded because the settlement price in the exchange reflects the most current transaction price, and is readily and regularly available from the exchange. Listed derivatives are
categorized within Level 1.

OTC derivatives (non-exchange-traded derivatives), including embedded derivatives that are
separately accounted for from the host contracts, are measured at fair value using valuation techniques such as the present value of estimated future cash flows and option pricing models, generally based on observable interest rates, foreign
exchange, commodities, stock prices and other factors as inputs. The valuation models for some transactions, such as yield curve spread options and equity options, use inputs which are not directly observable in the market, including historical
correlation coefficients and historical volatilities. However, as the impact of these unobservable inputs is insignificant to the fair value for most of the transactions, the SMFG Group categorizes the majority of those transactions within Level 2.

The credit loss protection scheme which the SMFG Group offers to Goldman Sachs (GS) is considered to be a credit
derivative, where the underlying reference entities are the American and European corporate entities covered in the commitment line portfolio of the GS group. The fair value of this derivative is determined using an ordinary collateralized debt
obligation (CDO) pricing model, commonly used in the financial markets. The SMFG Group takes some portions of the positions in subordinated and mezzanine tranches, which covers the first and second credit losses from the portfolio. The
major inputs for this derivative are credit default swap (CDS) spread rates, correlation ratios of CDS indices for similar portfolios, and the expected additional commitment withdrawal ratio. Although CDS spread rates and correlation
ratios are observable in an active market or available from brokers, this whole scheme is categorized within Level 3 as the expected additional withdrawal ratio, which is considered to be a significant input, is not observable in the market.

In addition, the fair value of OTC derivatives incorporates both counterparty credit risk in relation to OTC derivative
assets and own credit risk in relation to OTC derivative liabilities. The SMFG Group calculates the credit risk adjustments by applying the probability of default that reflects the counterpartys or its own credit risk to the OTC derivative
exposures and multiplying the result by the loss expected in the event of default. For the probability of default, the SMFG Group uses observable market data, where possible. The OTC derivative exposures used are determined taking into consideration
the effect of master netting agreements and collateral. As the SMFG Group manages the OTC derivatives on the basis of its net credit risk exposure, the credit risk adjustments of those OTC derivatives are measured on a portfolio basis in accordance
with the exception set forth in IFRS 13.

Financial assets at fair value through profit or loss

The majority of instruments in this category are debt instruments measured at fair value, using a valuation technique based on the
observable prices in the market and they are categorized within Level 2.

Some equity and debt instruments in this category
are hybrid instruments which have both equity and debt features. These include preferred stocks which are measured at fair value using various valuation models, such as the Monte Carlo Simulation, if they are indexed to the market prices in a stock
exchange. These valuation models use the historical volatility of the listed stocks as an input, which are not observable in the market, resulting in these instruments being categorized within Level 3. Other types of preferred stocks and other
non-hybrid equity instruments are evaluated using valuation techniques for unlisted stocks, which are normally used for private equity investments. The SMFG Group calculates the fair values of these instruments based on the market approach using
market multiples or others in which significant unobservable inputs are used. These instruments are categorized within Level 3.



F-89



---

##### Table of Contents

Available-for-sale financial assets

Debt instruments are measured at fair value using a quoted market price and categorized within Level 1 if they are traded in an active
market. Debt instruments are categorized within Level 2 if they are measured at fair value using a price quoted by a third party, such as a pricing service or broker, or by reference to the current fair value of another bond that is substantially
the same based on inputs such as prices obtained from brokers, observable interest rates and spreads. Some debt instruments are measured at fair value using the DCF method in which significant unobservable inputs are used, and categorized within
Level 3.

As for equity instruments, listed stocks are measured at fair value based on the market price at a stock exchange
and categorized within Level 1 if they are traded in an active market. Unlisted common and preferred stocks in this category are measured at fair value using valuation techniques, similar to those described in Financial assets at fair value
through profit or loss above. Publicly traded investment trusts and funds are measured at fair value using the market price and are categorized within Level 1 if they are traded in an active market. Instruments whose prices are not available
in the market, such as privately offered investment trusts, are measured at fair value based on the unit price, which is usually regarded as an exit price, obtained from the fund administrator or investment management firm. In such a case, these
investment trusts and funds are categorized within Level 2. Other investment funds, such as private equity and real estate investment funds, are generally measured at fair value based on net asset value, which includes significant unobservable
inputs. These funds are categorized within Level 3.



F-90



---

##### Table of Contents

Significant Unobservable Inputs

The following tables present quantitative information about significant unobservable inputs used in fair value measurement for Level 3
financial assets and liabilities at March 31, 2016 and 2015.



|                                                       |  |                   |         |  |                           |                        |                                    |                                            |                     |  |            | 
|------------------------------------------------------ |  | ----------------- | ------- |  | ------------------------- | ---------------------- | ---------------------------------- | ------------------------------------------ | ------------------- |  | ---------- | 
|                                                       |  | At March 31, 2016 |        
|                                                       |  | Fair value        |         |  | Valuation technique(s)(1) |                        | Significant unobservable inputs(1) |                                            | Range of 
inputs(1) | 
|                                                       |  | (In millions)     |         |  |                           |                        |                                    |                                            |                     | 
|Financial assets:                                      |  |                   |         |  |                           |                        |                                    |                                            |                     |  |            | 
|Derivative financial instruments:                      |  |                   |         |  |                           |                        |                                    |                                            |                     |  |            | 
|Currency derivatives                                   |  | ¥                 | 51      |  |                           | Option model           |                                    | Foreign exchange volatility                |                     |  | 12%-19%    | 
|Equity derivatives                                     |  |                   | 199     |  |                           | Option model           |                                    | Equity volatility                          |                     |  | 25%-55%    | 
|                                                       |  |                   |         |  |                           |                        |                                    | Equity to equity correlation               |                     |  | 61%-83%    | 
|Financial assets at fair value through profit or loss: |  |                   |         |  |                           |                        |                                    |                                            |                     |  |            | 
|Debt instruments                                       |  |                   | 11,667  |  |                           | Monte Carlo Simulation |                                    | Equity volatility                          |                     |  | 26%-38%    | 
|Equity instruments                                     |  |                   | 27,594  |  |                           | Market multiples       |                                    | Price/Earnings multiple                    |                     |  | 8.4x-26.7x | 
|                                                       |  |                   |         |  |                           |                        |                                    | EV/EBITDA multiple                         |                     |  | 4.0x       | 
|                                                       |  |                   |         |  |                           |                        |                                    | Liquidity discount                         |                     |  | 0%-20%     | 
|                                                       |  |                   |         |  |                           | See note (2) below     |                                    |                                           |                     |  |           | 
|Available-for-sale financial assets:                   |  |                   |         |  |                           |                        |                                    |                                            |                     |  |            | 
|Debt instruments                                       |  |                   | 2,022   |  |                           | DCF method             |                                    | Discount margin                            |                     |  | 7%         | 
|Equity instruments                                     |  |                   | 789,326 |  |                           | Market multiples       |                                    | Price/Book value multiple                  |                     |  | 0.7x-2.0x  | 
|                                                       |  |                   |         |  |                           |                        |                                    | Price/Earnings multiple                    |                     |  | 8.9x-47.9x | 
|                                                       |  |                   |         |  |                           |                        |                                    | EV/EBITDA multiple                         |                     |  | 6.9x-16.9x | 
|                                                       |  |                   |         |  |                           |                        |                                    | Price/Embedded value multiple              |                     |  | 0.3x       | 
|                                                       |  |                   |         |  |                           |                        |                                    | Liquidity discount                         |                     |  | 20%        | 
|                                                       |  |                   |         |  |                           | Monte Carlo Simulation |                                    | Equity volatility                          |                     |  | 33%-53%    | 
|                                                       |  |                   |         |  |                           | Net asset value(3)     |                                    |                                           |                     |  |           | 
|                                                       |  |                   |         |  |                           | See note (2) below     |                                    |                                           |                     |  |           | 
|Financial liabilities:                                 |  |                   |         |  |                           |                        |                                    |                                            |                     |  |            | 
|Derivative financial instruments:                      |  |                   |         |  |                           |                        |                                    |                                            |                     |  |            | 
|Currency derivatives                                   |  | ¥                 | 46      |  |                           | Option model           |                                    | Foreign exchange volatility                |                     |  | 12%-19%    | 
|Equity derivatives                                     |  |                   | 212     |  |                           | Option model           |                                    | Equity volatility                          |                     |  | 43%-54%    | 
|Credit derivatives                                     |  |                   | 3,134   |  |                           | CDO pricing model      |                                    | Additional withdrawal ratio                |                     |  | 49%        | 
|Others(4)                                              |  |                   | 1,240   |  |                           | Option model           |                                    | Equity volatility                          |                     |  | 40%-51%    | 
|                                                       |  |                   |         |  |                           |                        |                                    | Equity to equity correlation               |                     |  | 53%-92%    | 
|                                                       |  |                   |         |  |                           |                        |                                    | Interest rate to interest rate correlation |                     |  | 20%-100%   | 



F-91



---

##### Table of Contents

|                                                       |  |                   |         |  |                           |                        |                                    |                                            |                     |  |             | 
|------------------------------------------------------ |  | ----------------- | ------- |  | ------------------------- | ---------------------- | ---------------------------------- | ------------------------------------------ | ------------------- |  | ----------- | 
|                                                       |  | At March 31, 2015 |        
|                                                       |  | Fair value        |         |  | Valuation technique(s)(1) |                        | Significant unobservable inputs(1) |                                            | Range of 
inputs(1) | 
|                                                       |  | (In millions)     |         |  |                           |                        |                                    |                                            |                     | 
|Financial assets:                                      |  |                   |         |  |                           |                        |                                    |                                            |                     |  |             | 
|Derivative financial instruments:                      |  |                   |         |  |                           |                        |                                    |                                            |                     |  |             | 
|Equity derivatives                                     |  | ¥                 | 173     |  |                           | Option model           |                                    | Equity volatility                          |                     |  | 13%-45%     | 
|Credit derivatives                                     |  |                   | 6,356   |  |                           | CDO pricing model      |                                    | Additional withdrawal ratio                |                     |  | 50%         | 
|Financial assets at fair value through profit or loss: |  |                   |         |  |                           |                        |                                    |                                            |                     |  |             | 
|Debt instruments                                       |  |                   | 38,518  |  |                           | Monte Carlo Simulation |                                    | Equity volatility                          |                     |  | 25%-26%     | 
|                                                       |  |                   |         |  |                           | Market multiples       |                                    | Price/Embedded value multiple              |                     |  | 0.5x        | 
|                                                       |  |                   |         |  |                           |                        |                                    | Liquidity discount                         |                     |  | 10%         | 
|Equity instruments                                     |  |                   | 126,914 |  |                           | Market multiples       |                                    | Price/Earnings multiple                    |                     |  | 8.4x-17.7x  | 
|                                                       |  |                   |         |  |                           |                        |                                    | EV/EBITDA multiple                         |                     |  | 6.6x        | 
|                                                       |  |                   |         |  |                           |                        |                                    | Liquidity discount                         |                     |  | 0%-20%      | 
|                                                       |  |                   |         |  |                           | See note (2) below     |                                    |                                           |                     |  |            | 
|Available-for-sale financial assets:                   |  |                   |         |  |                           |                        |                                    |                                            |                     |  |             | 
|Debt instruments                                       |  |                   | 7,086   |  |                           | DCF method             |                                    | Discount margin                            |                     |  | 1%          | 
|Equity instruments                                     |  |                   | 914,802 |  |                           | Market multiples       |                                    | Price/Book value multiple                  |                     |  | 0.8x-2.2x   | 
|                                                       |  |                   |         |  |                           |                        |                                    | Price/Earnings multiple                    |                     |  | 10.9x-35.2x | 
|                                                       |  |                   |         |  |                           |                        |                                    | EV/EBITDA multiple                         |                     |  | 6.0x-18.6x  | 
|                                                       |  |                   |         |  |                           |                        |                                    | Price/Embedded value multiple              |                     |  | 0.5x        | 
|                                                       |  |                   |         |  |                           |                        |                                    | Liquidity discount                         |                     |  | 10%-20%     | 
|                                                       |  |                   |         |  |                           | Monte Carlo Simulation |                                    | Equity volatility                          |                     |  | 28%-55%     | 
|                                                       |  |                   |         |  |                           | Net asset value(3)     |                                    |                                           |                     |  |            | 
|                                                       |  |                   |         |  |                           | See note (2) below     |                                    |                                           |                     |  |            | 
|Financial liabilities:                                 |  |                   |         |  |                           |                        |                                    |                                            |                     |  |             | 
|Others(4)                                              |  | ¥                 | 1,212   |  |                           | Option model           |                                    | Interest rate to interest rate correlation |                     |  | 42%-100%    | 



|(1) | Valuation techniques and unobservable inputs for insignificant Level 3 financial assets and liabilities are excluded.
|--- | ---------------------------------------------------------------------------------------------------------------------

|(2) | Fair values of certain equity instruments such as unlisted stocks are estimated on the basis of an analysis of the investees financial position and results, risk
profile, prospects and other factors. A range of key inputs is not provided in the table as it is not practical to do so given the nature of such valuation techniques.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The SMFG Group has determined that the net asset value represents fair values of certain investment funds.
|--- | ----------------------------------------------------------------------------------------------------------

|(4) | Embedded derivatives are separately accounted for, but presented together with the host contract in the consolidated statement of financial position. In this table, the
embedded derivatives whose host contracts are carried at amortized cost are presented within Others, while the remaining are presented within the same category as the host contract. Although the separated embedded derivatives may have a positive or
a negative fair value, they have been presented in this table as assets or liabilities to be consistent with the host contract.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Volatility

Volatility represents a measure of how much a particular
instrument, parameter or index is expected to change in value over time. Equity volatility and foreign exchange volatility refer to the related listed stocks and the related foreign exchange rates, respectively. These volatilities are used in the
valuation techniques of preferred stocks and derivatives containing optionality, and estimated based on historical data or information provided by third-party sources, together with other analytical techniques. In general, a significant increase in
the volatility in isolation would result in a significantly higher fair value measurement.

Correlation

Correlation represents a measure of the relationship between the movements of two variables, which is expressed as a number between plus
and minus one. A positive correlation indicates that two variables move in the same direction while a negative correlation indicates that they move in opposite directions. Interest rate correlation refers to the correlation between two interest
rates of different tenors, whereas equity correlation refers to the correlation between stock price movements of different stocks. These correlations are used in the valuation techniques of complex derivatives and estimated based on historical data.
In general, a significant increase in the correlation in isolation would result in either a significantly higher or lower fair value measurement, depending on the terms of the instruments.



F-92



---

##### Table of Contents

Price/Earnings, price/book value and price/embedded value multiples

Price/Earnings (P/E) multiple represents the ratio of the equity value to the net income, while price/book value
(P/B) multiple represents the ratio of the equity value to the book value. Embedded value, which takes into account the future cash flows in addition to the net asset value, is applied instead of the book value for a certain unlisted
company. These multiples are estimated based on comparable listed companies. In general, a significant increase in the P/E multiple, P/B multiple or price/embedded value multiple in isolation would result in a significantly higher fair value
measurement.

EV/EBITDA multiple

EV/EBITDA multiple represents the ratio of the enterprise value (EV) to earnings before interest, taxes, depreciation and amortization (EBITDA), where the EV is the aggregate value
of equity and debt minus cash and cash equivalents. The multiple is estimated based on comparable listed companies. In general, a significant increase in the EV/EBITDA multiple in isolation would result in a significantly higher fair value
measurement.

Liquidity discount

A liquidity discount is primarily applied in the valuation techniques for unlisted stocks to reflect the fact that these stocks are not actively traded. In general, a significant increase in the liquidity
discount in isolation would result in a significantly lower fair value measurement.

Discount margin

Discount margin represents a spread used in estimating future cash flows in a DCF method to reflect the uncertainty of the cash flows that
market participants would consider. In general, a significant increase in the discount margin in isolation would result in a significantly lower fair value measurement.

Additional withdrawal ratio

Additional withdrawal ratio represents the
expected additional withdrawal ratio of unfunded commitment lines in the reference portfolio (mainly revolving credit facilities for commercial paper backup) concerning the credit loss protection scheme offered to GS. The expected additional
withdrawal ratio is estimated based on historical data of actual funded amounts at default for similar portfolios. In general, a significant increase in the additional withdrawal ratio in isolation would have a significant unfavorable impact (i.e.,
an increase in derivative liabilities or a decrease in derivative assets) on the fair value measurement.



F-93



---

##### Table of Contents

Sensitivity Analysis

The fair value of certain financial assets and liabilities are measured using valuation techniques based on inputs such as prices and
rates that are not observable in the market. The following tables present the impact of the valuation sensitivity, if these inputs fluctuate to the extent deemed reasonable and the volatility of such inputs has a significant impact on the fair
value.



|                                                       |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|------------------------------------------------------ |  | ------------------------------------------------- | ---------------- |  | --------------------------------- | ------------------ | ----- | --------------------------------- | ---------------- | - | ------ | ------------------ |  | - | ------ |  |  | - | ------ | 
|                                                       |  | At March 31, 2016                                 |                 
|                                                       |  | Total fair valuemeasured usingvaluationtechniques |                  |  | Effect recorded in profit or loss |                    |       | Effect recordeddirectly in equity |                 
|                                                       |  |                                                   | Favorablechanges |  |                                   | Unfavorablechanges |       |                                   | Favorablechanges |   |        | Unfavorablechanges | 
|                                                       |  | (In millions)                                     |                 
|Financial assets:                                      |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Derivative financial instruments:                      |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Currency derivatives                                   |  | ¥                                                 | 51               |  |                                   | ¥                  | 175   |                                   |                  | ¥ | 1      |                    |  | ¥ |       |  |  | ¥ |       | 
|Equity derivatives                                     |  |                                                   | 199              |  |                                   |                    | 104   |                                   |                  |   | 65     |                    |  |   |       |  |  |   |       | 
|Financial assets at fair value through profit or loss: |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Debt instruments                                       |  |                                                   | 11,667           |  |                                   |                    |      |                                   |                  |   |       |                    |  |   |       |  |  |   |       | 
|Equity instruments                                     |  |                                                   | 27,594           |  |                                   |                    | 240   |                                   |                  |   | 225    |                    |  |   |       |  |  |   |       | 
|Available-for-sale financial assets:                   |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Debt instruments                                       |  |                                                   | 2,022            |  |                                   |                    |      |                                   |                  |   |       |                    |  |   | 123    |  |  |   | 107    | 
|Equity instruments                                     |  |                                                   | 789,326          |  |                                   |                    |      |                                   |                  |   |       |                    |  |   | 20,286 |  |  |   | 19,682 | 
|                                                       |  |                                                   |                  |  |                                  
|Financial liabilities:                                 |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Derivative financial instruments:                      |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Currency derivatives                                   |  | ¥                                                 | 46               |  |                                   | ¥                  | 4     |                                   |                  | ¥ | 172    |                    |  | ¥ |       |  |  | ¥ |       | 
|Equity derivatives                                     |  |                                                   | 212              |  |                                   |                    | 212   |                                   |                  |   | 705    |                    |  |   |       |  |  |   |       | 
|Credit derivatives                                     |  |                                                   | 3,134            |  |                                   |                    | 3,176 |                                   |                  |   | 21,196 |                    |  |   |       |  |  |   |       | 
|Others(1)                                              |  |                                                   | 1,240            |  |                                   |                    | 3,321 |                                   |                  |   | 878    |                    |  |   |       |  |  |   |       | 
|                                                       | 
|                                                       |  | At March 31, 2015                                 |                 
|                                                       |  | Total fair valuemeasured usingvaluationtechniques |                  |  | Effect recorded in profit or loss |                    |       | Effect recordeddirectly in equity |                 
|                                                       |  |                                                   | Favorablechanges |  |                                   | Unfavorablechanges |       |                                   | Favorablechanges |   |        | Unfavorablechanges | 
|                                                       |  | (In millions)                                     |                 
|Financial assets:                                      |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Derivative financial instruments:                      |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Equity derivatives                                     |  | ¥                                                 | 173              |  |                                   | ¥                  | 147   |                                   |                  | ¥ | 42     |                    |  | ¥ |       |  |  | ¥ |       | 
|Credit derivatives                                     |  |                                                   | 6,356            |  |                                   |                    | 2,971 |                                   |                  |   | 14,594 |                    |  |   |       |  |  |   |       | 
|Financial assets at fair value through profit or loss: |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Debt instruments                                       |  |                                                   | 38,518           |  |                                   |                    | 2,877 |                                   |                  |   | 2,877  |                    |  |   |       |  |  |   |       | 
|Equity instruments                                     |  |                                                   | 126,914          |  |                                   |                    | 171   |                                   |                  |   | 171    |                    |  |   |       |  |  |   |       | 
|Available-for-sale financial assets:                   |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Debt instruments                                       |  |                                                   | 7,086            |  |                                   |                    |      |                                   |                  |   |       |                    |  |   | 148    |  |  |   | 122    | 
|Equity instruments                                     |  |                                                   | 914,802          |  |                                   |                    |      |                                   |                  |   |       |                    |  |   | 30,461 |  |  |   | 30,143 | 
|                                                       |  |                                                   |                  |  |                                  
|Financial liabilities:                                 |  |                                                   |                  |  |                                   |                    |       |                                   |                  |   |        |                    |  |   |        |  |  |   |        | 
|Others(1)                                              |  | ¥                                                 | 1,212            |  |                                   | ¥                  | 370   |                                   |                  | ¥ | 1,651  |                    |  | ¥ |       |  |  | ¥ |       | 



|(1) | Embedded derivatives are separately accounted for, but presented together with the host contract in the consolidated statement of financial position. In this table, the
embedded derivatives whose host contracts are carried at amortized cost are presented within Others, while the remaining are presented within the same category as the host contract. Although the separated embedded derivatives may have a positive or
a negative fair value, they have been presented in this table as assets or liabilities to be consistent with the host contract.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-94



---

##### Table of Contents

Derivative financial instruments (including embedded derivatives)

With respect to the credit loss protection scheme offered to GS, the anticipated losses will vary significantly depending on the expected
additional withdrawal ratio of unfunded commitment lines in the reference portfolio. The tables above present the estimates of the impact of changing the expected additional withdrawal ratio from an optimistic (favorable) scenario to a pessimistic
(unfavorable) scenario. For the other derivative instruments, including embedded derivatives that are separately accounted for from host contracts, that use correlation or volatility in the valuation techniques, the impact resulting from using a
reasonable range of those inputs is estimated where it is expected to be significant.

Financial assets at fair value
through profit or loss / Available-for-sale financial assets

With respect to preferred stocks convertible into listed
stocks, for which historical volatilities of related listed stocks are used in the valuation techniques, the impact resulting from using a reasonable range for the volatility is statistically estimated where it is expected to be significant. With
respect to unlisted stocks which are measured at fair value based on a market approach, the impact of changing the market multiples within a reasonable range (±10%) is estimated. Certain investment funds classified as available-for-sale
equity instruments are measured at fair value determined based on net asset value per share, which includes significant unobservable inputs. Since those funds are managed by value at risk (VaR) based on historical gain or loss data, the
impact of the valuation sensitivity is estimated using a one-day VaR of the portfolio.



F-95



---

##### Table of Contents

Financial Assets and Liabilities Not Carried at Fair Value

The tables below present the carrying amounts and fair values by level within the fair value hierarchy, as described in Financial
Assets and Liabilities Carried at Fair ValueFair Value Hierarchy, of financial assets and liabilities not carried at fair value on the SMFG Groups consolidated statement of financial position at March 31, 2016 and 2015.



|                                                                         |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|------------------------------------------------------------------------ |  | ----- |  | ----------------- | ---------- |  | ---------- | ------- | ---------- |  | ------- | - | ---------- | ------- |  | - | ---------- |  |  | - | ---------- | 
|                                                                         |  |       |  | At March 31, 2016 |           
|                                                                         |  |       |  | Carryingamount    |            |  | Fair value |        
|                                                                         |  | Notes |  |                   | Total      |  |            | Level 1 |            |  | Level 2 |   |            | Level 3 | 
|                                                                         |  |       |  | (In millions)     |           
|Financial assets:                                                        |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Cash and deposits with banks                                             |  | a     |  | ¥                 | 43,144,654 |  |            | ¥       | 43,143,523 |  |         | ¥ | 42,126,966 |         |  | ¥ | 1,016,557  |  |  | ¥ |           | 
|Call loans and bills bought:                                             |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Call loans                                                               |  | a     |  |                   | 1,283,758  |  |            |         | 1,283,925  |  |         |   |           |         |  |   | 1,283,925  |  |  |   |           | 
|Bills bought                                                             |  | a     |  |                   | 7,608      |  |            |         | 7,600      |  |         |   |           |         |  |   | 7,600      |  |  |   |           | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  | a     |  |                   | 8,236,516  |  |            |         | 8,236,532  |  |         |   |           |         |  |   | 8,236,532  |  |  |   |           | 
|Investment securities:                                                   |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Held-to-maturity investments                                             |  | b     |  |                   | 2,267,542  |  |            |         | 2,284,167  |  |         |   | 2,284,167  |         |  |   |           |  |  |   |           | 
|Loans and advances                                                       |  | a     |  |                   | 88,862,371 |  |            |         | 91,821,054 |  |         |   |           |         |  |   | 379,871    |  |  |   | 91,441,183 | 
|Other financial assets                                                   |  | a     |  |                   | 2,764,315  |  |            |         | 2,760,963  |  |         |   |           |         |  |   | 2,594,415  |  |  |   | 166,548    | 
|                                                                         |  |       |  |                   |            | 
|Financial liabilities:                                                   |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Deposits:                                                                |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Non-interest-bearing deposits, demand deposits and deposits at notice    |  | c     |  | ¥                 | 75,198,427 |  |            | ¥       | 75,199,277 |  |         | ¥ |           |         |  | ¥ | 75,199,277 |  |  | ¥ |           | 
|Other deposits                                                           |  | c     |  |                   | 50,742,370 |  |            |         | 50,753,241 |  |         |   |           |         |  |   | 50,753,241 |  |  |   |           | 
|Call money and bills sold:                                               |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Call money                                                               |  | c     |  |                   | 1,220,456  |  |            |         | 1,220,455  |  |         |   |           |         |  |   | 1,220,455  |  |  |   |           | 
|Bills sold                                                               |  | c     |  |                   |           |  |            |         |           |  |         |   |           |         |  |   |           |  |  |   |           | 
|Repurchase agreements and cash collateral on securities lent             |  | c     |  |                   | 6,839,474  |  |            |         | 6,839,474  |  |         |   |           |         |  |   | 6,839,474  |  |  |   |           | 
|Borrowings                                                               |  | c     |  |                   | 9,914,129  |  |            |         | 10,058,456 |  |         |   |           |         |  |   | 10,052,176 |  |  |   | 6,280      | 
|Debt securities in issue                                                 |  | c     |  |                   | 10,829,612 |  |            |         | 11,042,995 |  |         |   |           |         |  |   | 10,993,728 |  |  |   | 49,267     | 
|Other financial liabilities                                              |  | c     |  |                   | 5,935,511  |  |            |         | 5,935,212  |  |         |   |           |         |  |   | 5,791,251  |  |  |   | 143,961    | 



F-96



---

##### Table of Contents

|                                                                         |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|------------------------------------------------------------------------ |  | ----- |  | ----------------- | ---------- |  | ---------- | ------- | ---------- |  | ------- | - | ---------- | ------- |  | - | ---------- |  |  | - | ---------- | 
|                                                                         |  |       |  | At March 31, 2015 |           
|                                                                         |  |       |  | Carryingamount    |            |  | Fair value |        
|                                                                         |  | Notes |  |                   | Total      |  |            | Level 1 |            |  | Level 2 |   |            | Level 3 | 
|                                                                         |  |       |  | (In millions)     |           
|Financial assets:                                                        |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Cash and deposits with banks                                             |  | a     |  | ¥                 | 40,112,783 |  |            | ¥       | 40,112,558 |  |         | ¥ | 39,108,757 |         |  | ¥ | 1,003,801  |  |  | ¥ |           | 
|Call loans and bills bought:                                             |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Call loans                                                               |  | a     |  |                   | 1,301,680  |  |            |         | 1,301,817  |  |         |   |           |         |  |   | 1,301,817  |  |  |   |           | 
|Bills bought                                                             |  | a     |  |                   | 25,285     |  |            |         | 25,263     |  |         |   |           |         |  |   | 25,263     |  |  |   |           | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  | a     |  |                   | 7,218,498  |  |            |         | 7,220,169  |  |         |   |           |         |  |   | 7,220,169  |  |  |   |           | 
|Investment securities:                                                   |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Held-to-maturity investments                                             |  | b     |  |                   | 3,396,895  |  |            |         | 3,417,732  |  |         |   | 3,417,732  |         |  |   |           |  |  |   |           | 
|Loans and advances                                                       |  | a     |  |                   | 86,971,716 |  |            |         | 89,506,551 |  |         |   |           |         |  |   | 328,670    |  |  |   | 89,177,881 | 
|Other financial assets                                                   |  | a     |  |                   | 2,565,725  |  |            |         | 2,561,487  |  |         |   |           |         |  |   | 2,391,088  |  |  |   | 170,399    | 
|                                                                         |  |       |  |                   |            | 
|Financial liabilities:                                                   |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Deposits:                                                                |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Non-interest-bearing deposits, demand deposits and deposits at notice    |  | c     |  | ¥                 | 67,082,287 |  |            | ¥       | 67,085,473 |  |         | ¥ |           |         |  | ¥ | 67,085,473 |  |  | ¥ |           | 
|Other deposits                                                           |  | c     |  |                   | 48,751,693 |  |            |         | 48,757,109 |  |         |   |           |         |  |   | 48,757,109 |  |  |   |           | 
|Call money and bills sold:                                               |  |       |  |                   |            |  |            |         |            |  |         |   |            |         |  |   |            |  |  |   |            | 
|Call money                                                               |  | c     |  |                   | 5,873,124  |  |            |         | 5,873,118  |  |         |   |           |         |  |   | 5,873,118  |  |  |   |           | 
|Bills sold                                                               |  | c     |  |                   |           |  |            |         |           |  |         |   |           |         |  |   |           |  |  |   |           | 
|Repurchase agreements and cash collateral on securities lent             |  | c     |  |                   | 8,820,083  |  |            |         | 8,820,083  |  |         |   |           |         |  |   | 8,820,083  |  |  |   |           | 
|Borrowings                                                               |  | c     |  |                   | 11,217,052 |  |            |         | 11,350,636 |  |         |   |           |         |  |   | 11,345,162 |  |  |   | 5,474      | 
|Debt securities in issue                                                 |  | c     |  |                   | 11,051,431 |  |            |         | 11,272,771 |  |         |   |           |         |  |   | 11,114,139 |  |  |   | 158,632    | 
|Other financial liabilities                                              |  | c     |  |                   | 5,020,005  |  |            |         | 5,018,766  |  |         |   |           |         |  |   | 4,869,157  |  |  |   | 149,609    | 



Notes:

|   |  |                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|a. |  | (i)                                                                                                                                                                           |  | The carrying amounts of deposits with banks without maturity and loans with no specified repayment dates represent a reasonable estimate of fair value, considering the nature of
these financial instruments.                                                                                                                                                                                                                                                                                                                                                                  
|   |  | (ii)                                                                                                                                                                          |  | Financial assets with a remaining maturity of six months or less: The carrying amounts represent a reasonable estimate of fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |  | (iii)                                                                                                                                                                         |  | Financial assets with a remaining maturity of more than six months: Except for impaired loans and advances, the fair values are mostly determined using discounted cash flow models
taking into account certain factors including counterparties credit ratings, pledged collateral, and market interest rates. The fair values of impaired loans and advances are generally determined by discounting the estimated future cash flows
over the time period they are expected to be recovered, and may be based on the appraisal value of underlying collateral as appropriate.
|   |  | Note that some of the financial assets in this category include embedded derivatives, which are separately accounted for, but presented together with the host
contract.     
|b. |  | The fair values for held-to-maturity investments are determined using quoted prices in active markets.                                                                       
|c. |  | (i)                                                                                                                                                                           |  | The carrying amounts of demand deposits and deposits without maturity represent a reasonable estimate of fair value, considering the nature of these financial
instruments.                                                                                                                                                                                                                                                                                                                                                                                                     
|   |  | (ii)                                                                                                                                                                          |  | Financial liabilities with a remaining maturity of six months or less: The carrying amounts represent a reasonable estimate of fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |  | (iii)                                                                                                                                                                         |  | Financial liabilities with a remaining maturity of more than six months: The fair values are, in principle, based on the present values of future cash flows calculated using the
refinancing rate applied to the same type of instruments for similar remaining maturities. The fair values of debt securities in issue are based on the present values of future cash flows calculated using the rate derived from yields of bonds issued
by SMBC and publicly offered subordinated bonds published by securities firms.                                                      
|   |  | Note that some of the financial liabilities in this category include embedded derivatives, which are separately accounted for, but presented together with the host
contract.



F-97



---

##### Table of Contents

|44 | OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES
|-- | ----------------------------------------------

The following tables present the information about the impact of offsetting of financial assets and liabilities in the consolidated statement of financial position in accordance with the criteria
described in Note 2 Summary of Significant Accounting Policies, as well as the impact of netting of financial instruments that are subject to enforceable master netting arrangements or similar agreements but do not qualify for the
offsetting criteria at March 31, 2016 and 2015.



|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|------------------------------------------------------------------------ |  | ---------------------------------------------------------- | ---------- |  | ---------------------------------------------------------- | - | ---------- | ------------------------------------------------------ |  | - | --------------------------------------------------------------- |  |  | ----------- | ----------- | - |  | - | -------- | - |  | - | --------- | 
|                                                                         |  | At March 31, 2016                                          |           
|                                                                         |  | Gross amountsof recognizedfinancial assetsand 
liabilities |            |  | Gross amountsoffset in statementof financialposition(1)(2) |   |            | Net amountspresented instatement offinancial 
position |  |   | Related amounts not offset instatement of financial position(3) |  |  | Net amounts |            
|                                                                         |  |                                                            |            |  | Financialinstruments(4)                                    |   |            | Cash collateral                                        |  |  
|                                                                         |  | (In millions)                                              |           
|Financial assets(5):                                                     |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  | ¥                                                          | 8,467,868  |  |                                                            | ¥ | (231,352   | )                                                      |  | ¥ | 8,236,516                                                       |  |  | ¥           | (8,226,208  | ) |  | ¥ |         |   |  | ¥ | 10,308    | 
|Derivative financial instruments                                         |  |                                                            | 6,826,303  |  |                                                            |   | (1,535,478 | )                                                      |  |   | 5,290,825                                                       |  |  |             | (3,098,883  | ) |  |   | (367,063 | ) |  |   | 1,824,879 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Total                                                                    |  | ¥                                                          | 15,294,171 |  |                                                            | ¥ | (1,766,830 | )                                                      |  | ¥ | 13,527,341                                                      |  |  | ¥           | (11,325,091 | ) |  | ¥ | (367,063 | ) |  | ¥ | 1,835,187 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Financial liabilities(5):                                                |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Repurchase agreements and cash collateral on securities lent             |  | ¥                                                          | 7,070,826  |  |                                                            | ¥ | (231,352   | )                                                      |  | ¥ | 6,839,474                                                       |  |  | ¥           | (6,830,800  | ) |  | ¥ |         |   |  | ¥ | 8,674     | 
|Derivative financial instruments                                         |  |                                                            | 6,671,250  |  |                                                            |   | (1,585,167 | )                                                      |  |   | 5,086,083                                                       |  |  |             | (3,102,895  | ) |  |   | (656,294 | ) |  |   | 1,326,894 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Total                                                                    |  | ¥                                                          | 13,742,076 |  |                                                            | ¥ | (1,816,519 | )                                                      |  | ¥ | 11,925,557                                                      |  |  | ¥           | (9,933,695  | ) |  | ¥ | (656,294 | ) |  | ¥ | 1,335,568 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|                                                                         | 
|                                                                         |  | At March 31, 2015                                          |           
|                                                                         |  | Gross amountsof recognizedfinancial assetsand 
liabilities |            |  | Gross amountsoffset in statementof financialposition(1)    |   |            | Net amountspresented instatement offinancial 
position |  |   | Related amounts not offset instatement of financial position(3) |  |  | Net amounts |            
|                                                                         |  |                                                            |            |  | Financialinstruments(4)                                    |   |            | Cash collateral                                        |  |  
|                                                                         |  | (In millions)                                              |           
|Financial assets(5):                                                     |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  | ¥                                                          | 7,218,498  |  |                                                            | ¥ |           |                                                        |  | ¥ | 7,218,498                                                       |  |  | ¥           | (7,202,069  | ) |  | ¥ |         |   |  | ¥ | 16,429    | 
|Derivative financial instruments                                         |  |                                                            | 6,825,760  |  |                                                            |   | (354,557   | )                                                      |  |   | 6,471,203                                                       |  |  |             | (4,570,657  | ) |  |   | (280,102 | ) |  |   | 1,620,444 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Total                                                                    |  | ¥                                                          | 14,044,258 |  |                                                            | ¥ | (354,557   | )                                                      |  | ¥ | 13,689,701                                                      |  |  | ¥           | (11,772,726 | ) |  | ¥ | (280,102 | ) |  | ¥ | 1,636,873 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Financial liabilities(5):                                                |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Repurchase agreements and cash collateral on securities lent             |  | ¥                                                          | 8,820,083  |  |                                                            | ¥ |           |                                                        |  | ¥ | 8,820,083                                                       |  |  | ¥           | (8,805,131  | ) |  | ¥ |         |   |  | ¥ | 14,952    | 
|Derivative financial instruments                                         |  |                                                            | 7,162,759  |  |                                                            |   | (422,972   | )                                                      |  |   | 6,739,787                                                       |  |  |             | (4,685,870  | ) |  |   | (730,600 | ) |  |   | 1,323,317 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 
|Total                                                                    |  | ¥                                                          | 15,982,842 |  |                                                            | ¥ | (422,972   | )                                                      |  | ¥ | 15,559,870                                                      |  |  | ¥           | (13,491,001 | ) |  | ¥ | (730,600 | ) |  | ¥ | 1,338,269 | 
|                                                                         |  |                                                            |            |  |                                                            |   |            |                                                        |  |   |                                                                 |  |  |             |             |   |  |   |          |   |  |   |           | 



|(1) | Amounts offset for derivative financial instruments include cash collateral.
|--- | ----------------------------------------------------------------------------

|(2) | Amounts offset in the consolidated statement of financial position increased at March 31, 2016 primarily due to a revision of contracts with a central counterparty in
this fiscal year, which resulted in them qualifying for offsetting based on the criteria set forth in IAS 32.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | The amounts of financial instruments and cash collateral have been limited to the net amounts presented in the consolidated statement of financial position so as not to
include any over-collateralization.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | Financial instruments include non-cash collateral at fair value.
|--- | ----------------------------------------------------------------

|(5) | Financial assets and liabilities include amounts that are both subject to and not subject to enforceable master netting arrangements or similar agreements.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

The Gross amounts offset in statement of financial position column in the above tables represents
the impact of offsetting of financial assets and liabilities in the consolidated statement of financial position in accordance with the offsetting criteria. The SMFG Group presents financial assets and liabilities on a net basis in



F-98



---

##### Table of Contents

the consolidated statement of financial position only if it currently has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis or realize the asset
and settle the liability simultaneously.

The Related amounts not offset in statement of financial position column
comprises (1) financial assets and liabilities subject to netting arrangements, such as the International Swaps and Derivatives Associations (ISDA) Master Agreement, master repurchase agreements and master securities lending
agreements, which allow all the outstanding transactions with a particular counterparty to be set off only if the event of default or other predetermined events occur, and (2) cash and non-cash collateral related to those transactions.



|45 | FINANCIAL RISK MANAGEMENT
|-- | -------------------------

The SMFG Group classifies risks into the following categories: credit risk, market risk, liquidity risk and operational risk (including
processing risk and system risk). This note presents information about the SMFG Groups exposure to credit risk, market risk, and liquidity risk, and its policies and processes for measuring and managing these risks.

Risk Management System

The SMFG Group has established a basic approach for risk management. This basic approach includes establishing Group-wide basic policies
for risk management, providing all necessary implementation guidance to the SMFG Group companies and monitoring the risk management procedures implemented by all Group companies to ensure their practices meet the relevant standards.

The Group-wide basic policies for risk management are determined by the Management Committee, which consists of designated Board Members,
and such policies are authorized by the Board of Directors. The policies include the following:



| |  |  | Risk management on a Group-wide basis. Various risks taken at the SMFG Group companies are managed on a consolidated basis according to the
nature of their business and significance in conformity with the relevant laws and regulations.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Risk management based on quantification. The risks are quantitatively managed according to the relevant risk characteristics after specifying
the scope of quantification.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Ensuring consistency with the business strategy. Risk management is consistent with the business strategy.
| | - |  | ----------------------------------------------------------------------------------------------------------



| |  |  | System for check and balance. The risk management framework is developed to ensure effective check and balance function for business operations.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Measures for emergencies and critical situations. Necessary measures are developed by assuming situations and scenarios as to materialization of
risk which would have a significant impact on the business and financial management of the SMFG Group.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Verification of the actual situation. The actual risk management process is verified by the Internal Audit Unit.
| | - |  | ----------------------------------------------------------------------------------------------------------------

The policies also include fundamental principles for each risk category, which each SMFG Group company has to follow when establishing
its own risk management system. The Corporate Risk Management Department, in cooperation with the Corporate Planning Department, performs risk management according to the above policies. In addition, the Internal Audit Department is responsible for
the independent review of risk management within the SMFG Group.

Risk management systems are in place at the individual SMFG
Group companies, and have been established in accordance with the Group-wide basic policies for risk management and implementation guidance provided by SMFG. Based on these policies and guidance, each SMFG Group company implements guidelines and
establishes processes for risk management. On an ongoing basis, these processes and risks are monitored by SMFG.



F-99



---

##### Table of Contents

For example, at SMBC, specific departments have been appointed to oversee the handling of
the four risk categories listed above, in addition to the risks associated with settlement. Each risk category is managed taking into account, the particular characteristics of that category. In addition, the Risk Management Unit has been
establishedindependent of the business unitsand the risk management system has been strengthened by consolidating the functions for managing riskscredit, market, liquidity, operational and settlementinto the Risk Management
Unit and enhancing SMBCs across-the-board risk monitoring ability. One board member is assigned to oversee the Risk Management Unit comprising the Corporate Risk Management Department and Credit & Investment Planning Department. The
Corporate Risk Management Departmentthe units planning departmentseeks to manage all categories of risk in cooperation with the Corporate Planning Department. Moreover, the Internal Audit Unitindependent of all business
unitsconducts periodic audits to ensure that the management system is functioning properly.

The decision-making process
for addressing the risks at the operating level is also strengthened by the Credit Risk Management Committee and the Market Risk Management Committee, which are subcommittees of the Management Committee of SMBC.

The diagram below represents the risk management system of the SMFG Group and SMBC.



LOGO

Risk Capital-Based Management

In order to maintain a balance between risk and return, the SMFG Group employs a risk capital-based management method. The SMFG Group measures risk capital based on VaR and other specific
measures such as uniform basic measures of credit, market and operational risks, taking into account the special characteristics of each type of risk, and the business activities of each SMFG Group company.

The SMFG Group then allocates risk capital to each unit to keep the total exposure to various risks within the scope of the SMFG
Groups resources, i.e., capital. The allocation to each unit is determined by the Management Committee and authorized by the Board of Directors. In this framework, risk capital includes credit concentration risk and interest rate risk in the
banking book, which are taken into account under Pillar 2 of the Basel Capital Accord. In addition, the SMFG Group conducts risk capital management activities on a consolidated basis, including each SMFG Group company.



F-100



---

##### Table of Contents

Credit Risk

Credit risk is the risk of incurring losses from decline or loss of the value of an asset (including off-balance sheet items) that is caused by a credit event including but not limited to the
deterioration of financial condition of a borrower. Overseas credits transactions also entail country risk, which is closely related to credit risk. Country risk is the risk of incurring losses caused by changes in political or economic conditions.
Credit exposures arise primarily from lending activities such as loans and advances, acquiring investment securities, derivative transactions, and off-balance sheet transactions such as unused portion of loan commitments.

Credit risk management system

Credit risk is the most significant risk to which the SMFG Group is exposed. The purpose of credit risk management is to keep the credit risk exposure to a permissible level relative to capital, to
maintain the quality of assets and to ensure returns commensurate with risk.

On the basis of Group-wide basic policies for
risk management, the SMFG Group companies follow the fundamental principles established by the SMFG Group to assess and manage credit risk. Each SMFG Group company manages credit risk according to the nature of its business, and assesses and manages
the credit risks of individual loans and credit portfolios quantitatively, using consistent standards.

The following chart
shows the credit risk management system of SMBC, the SMFG Groups significant banking subsidiary.



LOGO



F-101



---

##### Table of Contents

At SMBC, the Credit & Investment Planning Department within the Risk Management Unit is
responsible for the comprehensive management of credit risk. This department drafts and administers credit policies, the internal rating system, credit authority guidelines and credit application guidelines, and manages non-performing loans
(NPLs), including impaired loans, and other aspects of credit portfolio management. The department also cooperates with the Corporate Risk Management Department in quantifying credit risk (risk capital and risk-weighted assets) and
controls SMBCs entire credit risk. Further, the Credit Portfolio Management Department within the Credit & Investment Planning Department strives to stabilize the credit portfolio and manage the risk through credit derivatives, loan asset
sales and other instruments.

The credit departments within each business unit conduct credit risk management for loans
handled by their units and manage their units portfolios. The credit limits they use are based on the baseline amounts that the Credit & Investment Planning Department establishes for each grading category, with particular attention paid
to evaluating and managing customers or loans perceived to have particularly high credit risk. The Corporate Research Department engages in research on industries and analyzes the business and financial conditions of borrower enterprises to detect
early signs of problems or growth potential.

The Credit Administration Department is responsible for handling NPLs of
borrowers classified as potentially bankrupt or lower, and formulates plans for workouts, including write-offs, and corporate rehabilitation. The department closely liaises with SMBC Servicer Co., Ltd., an SMFG Group company, which engages in
related services to efficiently reduce the amount of NPLs, including through the sale of loans.

The Internal Audit Unit,
operating independently of the business units, audits asset quality, accuracy of grading and state of credit risk management, and reports the results directly to the board of directors and the Management Committee.

SMBC has established the Credit Risk Committee to undertake control of credit risk and to ensure the overall soundness of the loan
operations.

Credit risk management methods

To effectively manage the risk involved in individual loans as well as the credit portfolio as a whole, SMBC first acknowledges that every
loan entails credit risk, assesses the credit risk posed by each borrower and loan using an internal rating system, and quantifies that risk for control purposes.

Credit risk evaluation

The Credit & Investment Planning Department
manages an internal rating system for each asset control category set according to portfolio characteristics. For example, credits to commercial and industrial (C&I) companies, individuals for business purposes (domestic only),
sovereigns, public sector entities, and financial institutions are assigned an obligor grade, which indicates the borrowers creditworthiness, and/or facility grade, which indicates the collectability of assets taking
into account the transaction conditions such as guarantee/collateral, and tenor. The business units determine an obligor grade by first assigning a financial grade using a financial strength grading model and data obtained from the obligors
financial statements, including net worth and cash flows. The financial grade is then adjusted taking into account the actual state of the obligors financial position and qualitative factors to derive the obligor grade. The qualitative factors
mainly include the expected future cash flows taking into account factors such as historical loss information, the appropriateness of the borrowers business plan or operational improvement plan, the status of progress of its plan, and the
overall support from financial institutions. In the event that the borrower is domiciled overseas, internal ratings for credit are made after taking into consideration the country rank, which represents an assessment of the credit quality of each
country based on its political and economic situation, as well as its current account balance and external debt. Obligor grades and facility grades are reviewed once a year and as otherwise necessary, such as when there are changes in the credit
situation. The SMFG Groups subsidiaries carry out credit risk evaluations in line with SMBC.



F-102



---

##### Table of Contents

The table below shows the corporate obligor grading system of SMBC.



|                     |  |                      |  |                                                                                                                                                                                                               |  |                             
|-------------------- |  | -------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------
|Obligor Grade        |  | Definition           |  | Borrower Category                                                                                                                                                                                            
|Domestic (C&I), etc. |  | Overseas (C&I), etc. |  |                                                                                                                                                                                                              
|J1                   |  | G1                   |  | Very high certainty of debt repayment                                                                                                                                                                         |  | NormalBorrowers             
|J2                   |  | G2                   |  | High certainty of debt repayment                                                                                                                                                                              | 
|J3                   |  | G3                   |  | Satisfactory certainty of debt repayment                                                                                                                                                                      | 
|J4                   |  | G4                   |  | Debt repayment is likely, but this could change in cases of significant changes in economic trends or
business environment                                                                                    | 
|J5                   |  | G5                   |  | No problem with debt repayment over the short term, but not satisfactory over the mid to long term, and the
situation could change in cases of significant changes in economic trends or business environment | 
|J6                   |  | G6                   |  | Currently no problem with debt repayment, but there are unstable business and financial factors that could
lead to debt repayment problems                                                                    | 
|J7                   |  | G7                   |  | Close monitoring is required due to problems in meeting loan terms and conditions, sluggish/unstable
business, or financial problems                                                                          |  | BorrowersRequiring Caution  
|J7R                  |  | G7R                  |  | Obligors with loans that are more than three months past due or with restructured loans within the
Borrowers Requiring Caution category                                                                     |  | SubstandardBorrowers        
|J8                   |  | G8                   |  | Currently not bankrupt, but experiencing business difficulties, making insufficient progress in
restructuring and highly likely to go bankrupt                                                                |  | PotentiallyBankruptBorrowers
|J9                   |  | G9                   |  | Though not yet legally or formally bankrupt, has serious business difficulties and rehabilitation is
unlikely; thus, effectively bankrupt                                                                     |  | EffectivelyBankruptBorrowers
|J10                  |  | G10                  |  | Legally or formally bankrupt                                                                                                                                                                                  |  | BankruptBorrowers           

There are also grading systems for loans to individuals such as housing loans and structured finance
including project finance, where the repayment source is limited to the cash flows generated by a particular business or asset. For example, the obligor grade of housing loans is determined taking into account various relevant factors such as
proportion of the repayment to revenue, proportion of down payment to the value and past due information.

The Credit &
Investment Planning Department centrally manages the internal rating systems, and designs, operates, supervises and validates the grading models. It validates the grading models (including statistical validation) of main assets following the
procedure manual once a year to ensure their effectiveness and suitability.

Quantification of credit risk

Credit risk quantification refers to the process of estimating the degree of credit risk of a portfolio or individual loan taking into
account not just the obligors probability of default (PD), but also the concentration of risk in a specific customer or industry, and the loss impact of fluctuations in the value of collateral, such as real estate and securities.



F-103



---

##### Table of Contents

Specifically, the PD by grade, loss given default (LGD), credit quality
correlation among obligors, and other parameter values are estimated using the historical data of obligors and facilities stored in a database to calculate the credit risk. Then, based on these parameters, SMBC runs a simulation of simultaneous
default using the Monte Carlo Simulation to calculate SMBCs maximum loss exposure to the estimated amount of the maximum losses that may be incurred. Based on these quantitative results, SMBC allocates risk capital.

Risk quantification is also executed for purposes such as to determine the portfolios risk concentration or to simulate economic
movements (stress tests), and the results are used for making optimal decisions across the whole range of business operations, including formulating business plans and providing a standard against which individual credit applications are assessed.

Credit assessment

At SMBC, the credit assessment of corporate loans involves a variety of financial analyses, including cash flows, to predict an enterprises capability of loan repayment and its growth prospects.
These quantitative measures, when combined with qualitative analyses of industrial trends, the enterprises research and development capabilities, the competitiveness of its products or services, and its management caliber, result in a
comprehensive credit assessment. The loan application is analyzed in terms of the intended utilization of the funds and the repayment schedule. In the assessment of housing loans for individuals, SMBC employs a credit assessment model based on
credit data amassed and analyzed by SMBC over many years, taking into account various relevant factors including proportion of the repayment to revenue, proportion of down payment to the value and past due information.

Credit monitoring

At SMBC, in addition to analyzing loans at the application stage, the Credit Monitoring System is utilized to reassess obligor grades, and review credit policies for each obligor so that problems can be
detected at an early stage, and quick and effective action can be taken. The system includes annual monitoring that is carried out each time the financial results of the obligor enterprise are obtained, as well as ad-hoc monitoring that is performed
each time credit conditions change.

Credit portfolio management

Risk-taking within the scope of capital

To keep the credit risk exposure to a permissible level relative to capital, SMBCs Corporate Risk Management Department sets a credit risk capital limit for internal control purposes. Under this
limit, sub-limits are set for each business unit. The Corporate Risk Management Department conducts monthly monitoring to make sure that these limits are being followed.

Controlling concentration risk

Once the credit concentration risk is
realized, the equity capital of SMBC may be materially impaired. SMBCs Credit & Investment Planning Department therefore takes measures to manage concentration risks, such as introducing large exposure limits and conducting intensive loan
reviews for obligors with large exposures, with an increased focus on industrial sectors with an excessive concentration of credit risk. Further, to manage country risk, the Credit Management Department of the International Banking Unit has credit
limit guidelines based on each countrys creditworthiness.

Toward active portfolio management

SMBCs Credit Portfolio Management Department makes use of credit derivatives, loan asset sales, and other instruments to proactively
and flexibly manage its portfolio to stabilize credit risk.



F-104



---

##### Table of Contents

Maximum exposure to credit risk before collateral held or other credit enhancements

The following table shows the maximum exposure to credit risk before taking into account any collateral held or other
credit enhancements at March 31, 2016 and 2015.



|                                                                                              |  |               |             |  |      |   |             | 
|--------------------------------------------------------------------------------------------- |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                                                                                              |  | At March 31,  |            
|                                                                                              |  | 2016          |             |  | 2015 |  
|                                                                                              |  | (In millions) |            
|Credit risk exposures relating to assets on the consolidated statement of financial position: |  |               |             |  |      |   |             | 
|Deposits with banks                                                                           |  | ¥             | 42,179,465  |  |      | ¥ | 38,938,903  | 
|Call loans and bills bought                                                                   |  |               | 1,291,366   |  |      |   | 1,326,965   | 
|Reverse repurchase agreements and cash collateral on securities borrowed                      |  |               | 8,236,516   |  |      |   | 7,218,498   | 
|Trading assets                                                                                |  |               | 3,174,309   |  |      |   | 2,618,593   | 
|Derivative financial instruments                                                              |  |               | 5,290,825   |  |      |   | 6,471,203   | 
|Financial assets at fair value through profit or loss                                         |  |               | 1,582,571   |  |      |   | 1,654,259   | 
|Investment securities:                                                                        |  |               |             |  |      |   |             | 
|Held-to-maturity investments                                                                  |  |               | 2,267,542   |  |      |   | 3,396,895   | 
|Available-for-sale financial assets                                                           |  |               | 12,349,910  |  |      |   | 14,413,448  | 
|Loans and advances                                                                            |  |               | 88,862,371  |  |      |   | 86,971,716  | 
|Other financial assets                                                                        |  |               | 2,764,315   |  |      |   | 2,565,725   | 
|Credit risk exposures relating to off-balance sheet items(1):                                 |  |               |             |  |      |   |             | 
|Loan commitments                                                                              |  |               | 58,026,597  |  |      |   | 53,665,583  | 
|Financial guarantees and other credit-related contingent liabilities                          |  |               | 7,349,903   |  |      |   | 7,076,536   | 
|                                                                                              |  |               |             |  |      |   |             | 
|Total                                                                                         |  | ¥             | 233,375,690 |  |      | ¥ | 226,318,324 | 
|                                                                                              |  |               |             |  |      |   |             | 



|(1) | The off-balance sheet items represent the nominal amounts of undrawn loan commitments, financial guarantees and other credit-related contingent liabilities.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

Based on the table above, excluding loan commitments (refer to Note 41 Contingency and Capital
Commitments), the majority of the total exposure to credit risk is derived from Loans and advances and Available-for-sale financial assets.

Collateral and other credit enhancements

The SMFG Group considers
the acquisition of collateral and guarantees as a secondary repayment source to further enhance loan recovery and minimize credit risk. Based on the assessment of a borrowers real financial condition and potential future cash flows, the SMFG
Group shall analyze the borrowers repayment ability and require sufficient collateral in the form of an asset or third-party obligation. This serves to mitigate the inherent credit risk in the exposure, by either improving recoveries in the
event of a default or transferring the borrowers obligation to guarantors. Collateral received is mainly segregated into (1) financial collateral such as cash, deposits and securities, (2) real estate collateral such as land and buildings, and
(3) guarantees received from sovereigns, municipal corporations, credit guarantee corporations and other public entities, financial institutions, and other companies.

The SMFG Groups credit risk management is mainly based on an analysis of the repayment ability from the cash flows of the borrowers business performance, and the collateral and other credit
enhancements are considered as secondary repayment sources in the SMFG Groups business practice. At the time of the primary lending decision, the SMFG Group evaluates the collateral on an individual borrower basis to consider its financial
effect for mitigating credit risk. The frequency of subsequent collateral reviews is dependent on the borrowers creditworthiness. In case there is a significant change in the borrowers repayment ability due to a



F-105



---

##### Table of Contents

deterioration in its creditworthiness and/or its cash flows, the SMFG Group may utilize the collateral and other credit enhancements as a source of repayment. In such circumstances the
re-evaluation of the collateral and other credit enhancements will be performed regularly.

The following table shows the
financial effect of collateral and other credit enhancements on loans and advances for borrowers requiring caution and impaired loans and advances at March 31, 2016 and 2015. The maximum collateral amounts included in the disclosure are limited to
the carrying value of loans and advances where the credit exposure is over-collateralized.



|                                                                                   |  |               |           |  |      |   |           | 
|---------------------------------------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                                                   |  | At March 31,  |          
|                                                                                   |  | 2016          |           |  | 2015 |  
|                                                                                   |  | (In millions) |          
|Loans and advances for borrowers requiring caution and impaired loans and advances |  | ¥             | 3,436,118 |  |      | ¥ | 3,916,948 | 
|Financial effect of collateral and other credit enhancements                       |  |               | 1,539,900 |  |      |   | 1,827,023 | 

Concentration of risks of loans and advances with credit risk exposure

An analysis of concentrations of credit risk from loans and advances by geographical sector and industry sector at March 31, 2016 and 2015
is shown below. The concentration by geographical sector is measured based on the domicile of the borrower.

Geographical
sector



|                                                                            |  |               |            |   |      |   |            |  
|--------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | -
|                                                                            |  | At March 31,  |           
|                                                                            |  | 2016          |            |   | 2015 |  
|                                                                            |  | (In millions) |           
|Domestic                                                                    |  | ¥             | 63,203,919 |   |      | ¥ | 62,232,077 |  
|Foreign:                                                                    |  |               |            |   |      |   |            |  
|Americas                                                                    |  |               | 10,722,157 |   |      |   | 9,587,777  |  
|Europe                                                                      |  |               | 4,982,442  |   |      |   | 4,699,266  |  
|Asia                                                                        |  |               | 7,603,424  |   |      |   | 8,549,341  |  
|Others                                                                      |  |               | 3,286,103  |   |      |   | 2,903,247  |  
|                                                                            |  |               |            |   |      |   |            |  
|Total foreign                                                               |  |               | 26,594,126 |   |      |   | 25,739,631 |  
|                                                                            |  |               |            |   |      |   |            |  
|Gross loans and advances                                                    |  |               | 89,798,045 |   |      |   | 87,971,708 |  
|Adjust: Unearned income, unamortized premiumsnet and deferred loanfeesnet |  |               | (212,957   | ) |      |   | (206,440   | )
|Less: Allowance for loan losses                                             |  |               | (722,717   | ) |      |   | (793,552   | )
|                                                                            |  |               |            |   |      |   |            |  
|Net loans and advances                                                      |  | ¥             | 88,862,371 |   |      | ¥ | 86,971,716 |  
|                                                                            |  |               |            |   |      |   |            |  



F-106



---

##### Table of Contents

Industry sector



|                                                                            |  |               |            |   |      |   |            |  
|--------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | -
|                                                                            |  | At March 31,  |           
|                                                                            |  | 2016          |            |   | 2015 |  
|                                                                            |  | (In millions) |           
|Domestic:                                                                   |  |               |            |   |      |   |            |  
|Manufacturing                                                               |  | ¥             | 8,298,576  |   |      | ¥ | 8,061,654  |  
|Agriculture, forestry, fisheries and mining                                 |  |               | 184,314    |   |      |   | 171,855    |  
|Construction                                                                |  |               | 1,169,900  |   |      |   | 1,150,616  |  
|Transportation, communications and public enterprises                       |  |               | 5,258,899  |   |      |   | 5,175,949  |  
|Wholesale and retail                                                        |  |               | 5,548,103  |   |      |   | 5,664,385  |  
|Finance and insurance                                                       |  |               | 2,684,865  |   |      |   | 2,869,967  |  
|Real estate and goods rental and leasing                                    |  |               | 9,587,757  |   |      |   | 8,766,724  |  
|Services                                                                    |  |               | 4,960,352  |   |      |   | 4,776,706  |  
|Municipalities                                                              |  |               | 1,374,306  |   |      |   | 1,353,949  |  
|Lease financing                                                             |  |               | 2,212,048  |   |      |   | 2,211,773  |  
|Consumer(1)                                                                 |  |               | 18,935,521 |   |      |   | 18,817,259 |  
|Others                                                                      |  |               | 2,989,278  |   |      |   | 3,211,240  |  
|                                                                            |  |               |            |   |      |   |            |  
|Total domestic                                                              |  |               | 63,203,919 |   |      |   | 62,232,077 |  
|                                                                            |  |               |            |   |      |   |            |  
|Foreign:                                                                    |  |               |            |   |      |   |            |  
|Public sector                                                               |  |               | 236,290    |   |      |   | 164,495    |  
|Financial institutions                                                      |  |               | 4,067,764  |   |      |   | 3,880,655  |  
|Commerce and industry                                                       |  |               | 20,451,545 |   |      |   | 20,010,729 |  
|Lease financing                                                             |  |               | 357,072    |   |      |   | 308,128    |  
|Others                                                                      |  |               | 1,481,455  |   |      |   | 1,375,624  |  
|                                                                            |  |               |            |   |      |   |            |  
|Total foreign                                                               |  |               | 26,594,126 |   |      |   | 25,739,631 |  
|                                                                            |  |               |            |   |      |   |            |  
|Gross loans and advances                                                    |  |               | 89,798,045 |   |      |   | 87,971,708 |  
|Adjust: Unearned income, unamortized premiumsnet and deferred loanfeesnet |  |               | (212,957   | ) |      |   | (206,440   | )
|Less: Allowance for loan losses                                             |  |               | (722,717   | ) |      |   | (793,552   | )
|                                                                            |  |               |            |   |      |   |            |  
|Net loans and advances                                                      |  | ¥             | 88,862,371 |   |      | ¥ | 86,971,716 |  
|                                                                            |  |               |            |   |      |   |            |  



|(1) | The balance in Consumer mainly consists of housing loans. The housing loan balances amounted to ¥13,984,755 million and ¥14,087,453 million at March 31, 2016
and 2015, respectively.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following tables show a disaggregation of the structured finance loans and advances
balances, where the repayment source is limited to the cash flows generated by a particular business or asset, and the balances of secured or unsecured consumer loans at March 31, 2016 and 2015. These loans and advances are included in the preceding
tables.

Structured finance:



|                         |  |               |           |  |      |   |           | 
|------------------------ |  | ------------- | --------- |  | ---- | - | --------- | 
|                         |  | At March 31,  |          
|                         |  | 2016          |           |  | 2015 |  
|                         |  | (In millions) |          
|Real estate finance      |  | ¥             | 1,971,892 |  |      | ¥ | 1,896,194 | 
|Project finance          |  |               | 3,326,624 |  |      |   | 2,988,040 | 
|Other structured finance |  |               | 360,583   |  |      |   | 332,132   | 
|                         |  |               |           |  |      |   |           | 
|Total structured finance |  | ¥             | 5,659,099 |  |      | ¥ | 5,216,366 | 
|                         |  |               |           |  |      |   |           | 



F-107



---

##### Table of Contents

Consumer:



|                 |  |               |            |  |      |   |            | 
|---------------- |  | ------------- | ---------- |  | ---- | - | ---------- | 
|                 |  | At March 31,  |           
|                 |  | 2016          |            |  | 2015 |  
|                 |  | (In millions) |           
|Secured loans(1) |  | ¥             | 15,100,882 |  |      | ¥ | 15,193,732 | 
|Unsecured loans  |  |               | 3,834,639  |  |      |   | 3,623,527  | 
|                 |  |               |            |  |      |   |            | 
|Total consumer   |  | ¥             | 18,935,521 |  |      | ¥ | 18,817,259 | 
|                 |  |               |            |  |      |   |            | 



|(1) | The secured loans and advances mainly represent housing loans. The housing loan balances amounted to ¥13,984,755 million and ¥14,087,453 million at March 31,
2016 and 2015, respectively.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Loans and advances by credit quality category

Loans and advances are summarized as follows:



|                                                                            |  |               |            |   |      |   |            |  
|--------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---- | - | ---------- | -
|                                                                            |  | At March 31,  |           
|                                                                            |  | 2016          |            |   | 2015 |  
|                                                                            |  | (In millions) |           
|Neither past due nor impaired                                               |  | ¥             | 88,300,045 |   |      | ¥ | 86,206,087 |  
|Past due but not impaired                                                   |  |               | 145,413    |   |      |   | 167,519    |  
|Impaired(1)                                                                 |  |               | 1,352,587  |   |      |   | 1,598,102  |  
|                                                                            |  |               |            |   |      |   |            |  
|Gross loans and advances                                                    |  |               | 89,798,045 |   |      |   | 87,971,708 |  
|Adjust: Unearned income, unamortized premiumsnet and deferred loanfeesnet |  |               | (212,957   | ) |      |   | (206,440   | )
|Less: Allowance for loan losses                                             |  |               | (722,717   | ) |      |   | (793,552   | )
|                                                                            |  |               |            |   |      |   |            |  
|Net loans and advances                                                      |  | ¥             | 88,862,371 |   |      | ¥ | 86,971,716 |  
|                                                                            |  |               |            |   |      |   |            |  



|(1) | Loans and advances to borrowers who are classified in the borrower categories of substandard borrowers, potentially bankrupt borrowers, effectively bankrupt borrowers,
and bankrupt borrowers described in the obligor grading system represent impaired loans and advances.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-108



---

##### Table of Contents

Loans and advances neither past due nor impaired

The following tables show the credit quality of the portfolio of loans and advances that were neither past due nor impaired, by geography
and by industry based on the corporate obligor grading system of SMBC at March 31, 2016 and 2015. Since the internal rating system of SMBCs consumer portfolio differs from the corporate obligor grading system, the balances of loans and
advances to consumers are included in the grade category of Other. Additionally, as the SMFG Groups subsidiaries are adopting various internal rating systems which differ from SMBC, the grade category of Other also
includes some balances of loans and advances held by those subsidiaries.



|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|----------------------------------------------------- |  | ----------------- | ---------- |  | ----------------- | - | ---------- | ------------------------------------------------ |  | - | --------- |  |  | --- | ---------- |  | ----- | - | --------- | ----- |  | - | ------- |  |  | - | ---------- | 
|                                                      |  | At March 31, 2016 |           
|                                                      |  | Normal            |            |  | Requiring Caution |   |            |                                                  | 
|                                                      |  | J 1-3             |            |  | J 4-6             |   |            | Japanesegovernmentand localmunicipalcorporations |  |   | Other     |  |  | J 7 |            |  | Other |   |           | Total | 
|                                                      |  | (In millions)     |           
|Domestic:                                             |  |                   |            | 
|Manufacturing                                         |  | ¥                 | 4,079,745  |  |                   | ¥ | 2,312,983  |                                                  |  | ¥ |          |  |  | ¥   | 1,482,203  |  |       | ¥ | 249,514   |       |  | ¥ | 30,678  |  |  | ¥ | 8,155,123  | 
|Agriculture, forestry, fisheries and mining           |  |                   | 120,102    |  |                   |   | 40,283     |                                                  |  |   | 1,836     |  |  |     | 4,773      |  |       |   | 13,935    |       |  |   | 488     |  |  |   | 181,417    | 
|Construction                                          |  |                   | 256,807    |  |                   |   | 486,372    |                                                  |  |   |          |  |  |     | 340,084    |  |       |   | 40,480    |       |  |   | 15,971  |  |  |   | 1,139,714  | 
|Transportation, communications and public enterprises |  |                   | 2,806,799  |  |                   |   | 1,854,794  |                                                  |  |   | 130,276   |  |  |     | 331,062    |  |       |   | 69,273    |       |  |   | 18,964  |  |  |   | 5,211,168  | 
|Wholesale and retail                                  |  |                   | 2,100,074  |  |                   |   | 2,339,099  |                                                  |  |   |          |  |  |     | 762,215    |  |       |   | 148,212   |       |  |   | 33,427  |  |  |   | 5,383,027  | 
|Finance and insurance                                 |  |                   | 1,771,768  |  |                   |   | 344,988    |                                                  |  |   | 3,777     |  |  |     | 541,677    |  |       |   | 1,192     |       |  |   | 12,959  |  |  |   | 2,676,361  | 
|Real estate and goods rental and leasing              |  |                   | 4,835,253  |  |                   |   | 2,931,969  |                                                  |  |   | 60,172    |  |  |     | 1,379,394  |  |       |   | 123,198   |       |  |   | 97,519  |  |  |   | 9,427,505  | 
|Services                                              |  |                   | 1,205,281  |  |                   |   | 2,389,434  |                                                  |  |   | 368,595   |  |  |     | 675,641    |  |       |   | 124,808   |       |  |   | 42,776  |  |  |   | 4,806,535  | 
|Municipalities                                        |  |                   |           |  |                   |   |           |                                                  |  |   | 1,196,218 |  |  |     | 162,416    |  |       |   |          |       |  |   | 15,672  |  |  |   | 1,374,306  | 
|Lease financing                                       |  |                   |           |  |                   |   |           |                                                  |  |   |          |  |  |     | 2,175,270  |  |       |   |          |       |  |   | 20,149  |  |  |   | 2,195,419  | 
|Consumer(1)                                           |  |                   |           |  |                   |   |           |                                                  |  |   |          |  |  |     | 18,262,468 |  |       |   | 3,706     |       |  |   | 205,149 |  |  |   | 18,471,323 | 
|Others                                                |  |                   | 75,001     |  |                   |   | 2,054,174  |                                                  |  |   | 240,406   |  |  |     | 430,588    |  |       |   | 134,481   |       |  |   | 2,130   |  |  |   | 2,936,780  | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Total domestic                                        |  |                   | 17,250,830 |  |                   |   | 14,754,096 |                                                  |  |   | 2,001,280 |  |  |     | 26,547,791 |  |       |   | 908,799   |       |  |   | 495,882 |  |  |   | 61,958,678 | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|                                                      |  |                   |            |  |                   |   |           
|                                                      |  | G 1-3             |            |  | G 4-6             |   |            |                                                 |  |   | Other     |  |  | G 7 |            |  | Other |   |           | Total | 
|Foreign:                                              |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Public sector                                         |  |                   | 186,590    |  |                   |   | 43,537     |                                                  |  |   |          |  |  |     | 5,786      |  |       |   |          |       |  |   | 346     |  |  |   | 236,259    | 
|Financial institutions                                |  |                   | 2,336,134  |  |                   |   | 265,339    |                                                  |  |   |          |  |  |     | 1,430,931  |  |       |   |          |       |  |   | 26,149  |  |  |   | 4,058,553  | 
|Commerce and industry                                 |  |                   | 13,183,703 |  |                   |   | 2,299,987  |                                                  |  |   |          |  |  |     | 4,132,695  |  |       |   | 452,172   |       |  |   | 160,373 |  |  |   | 20,228,930 | 
|Lease financing                                       |  |                   |           |  |                   |   |           |                                                  |  |   |          |  |  |     | 333,664    |  |       |   |          |       |  |   | 12,138  |  |  |   | 345,802    | 
|Others                                                |  |                   | 961,363    |  |                   |   | 176,170    |                                                  |  |   |          |  |  |     | 317,251    |  |       |   | 5,496     |       |  |   | 11,543  |  |  |   | 1,471,823  | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Total foreign                                         |  |                   | 16,667,790 |  |                   |   | 2,785,033  |                                                  |  |   |          |  |  |     | 6,220,327  |  |       |   | 457,668   |       |  |   | 210,549 |  |  |   | 26,341,367 | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Total                                                 |  | ¥                 | 33,918,620 |  |                   | ¥ | 17,539,129 |                                                  |  | ¥ | 2,001,280 |  |  | ¥   | 32,768,118 |  |       | ¥ | 1,366,467 |       |  | ¥ | 706,431 |  |  | ¥ | 88,300,045 | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 



|(1) | The balance in the grade category of Other in Consumer includes housing loans, which amounted to ¥13,679,846 million and ¥87,006 million for
the borrower category of Normal and Requiring Caution, respectively.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-109



---

##### Table of Contents

|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|----------------------------------------------------- |  | ----------------- | ---------- |  | ----------------- | - | ---------- | ------------------------------------------------ |  | - | --------- |  |  | --- | ---------- |  | ----- | - | --------- | ----- |  | - | ------- |  |  | - | ---------- | 
|                                                      |  | At March 31, 2015 |           
|                                                      |  | Normal            |            |  | Requiring Caution |   |            |                                                  | 
|                                                      |  | J 1-3             |            |  | J 4-6             |   |            | Japanesegovernmentand localmunicipalcorporations |  |   | Other     |  |  | J 7 |            |  | Other |   |           | Total | 
|                                                      |  | (In millions)     |           
|Domestic:                                             |  |                   |            | 
|Manufacturing                                         |  | ¥                 | 3,843,395  |  |                   | ¥ | 2,265,065  |                                                  |  | ¥ |          |  |  | ¥   | 1,493,017  |  |       | ¥ | 250,386   |       |  | ¥ | 40,969  |  |  | ¥ | 7,892,832  | 
|Agriculture, forestry, fisheries and mining           |  |                   | 124,546    |  |                   |   | 30,655     |                                                  |  |   | 1,336     |  |  |     | 5,509      |  |       |   | 2,101     |       |  |   | 529     |  |  |   | 164,676    | 
|Construction                                          |  |                   | 177,536    |  |                   |   | 504,951    |                                                  |  |   |          |  |  |     | 333,352    |  |       |   | 71,238    |       |  |   | 19,556  |  |  |   | 1,106,633  | 
|Transportation, communications and public enterprises |  |                   | 2,560,712  |  |                   |   | 1,981,485  |                                                  |  |   | 128,491   |  |  |     | 343,328    |  |       |   | 80,017    |       |  |   | 21,401  |  |  |   | 5,115,434  | 
|Wholesale and retail                                  |  |                   | 2,052,654  |  |                   |   | 2,478,098  |                                                  |  |   |          |  |  |     | 735,796    |  |       |   | 170,310   |       |  |   | 38,242  |  |  |   | 5,475,100  | 
|Finance and insurance                                 |  |                   | 1,848,302  |  |                   |   | 414,844    |                                                  |  |   | 4,317     |  |  |     | 574,410    |  |       |   | 1,541     |       |  |   | 14,368  |  |  |   | 2,857,782  | 
|Real estate and goods rental and leasing              |  |                   | 3,660,159  |  |                   |   | 3,293,563  |                                                  |  |   | 73,853    |  |  |     | 1,240,569  |  |       |   | 163,554   |       |  |   | 106,891 |  |  |   | 8,538,589  | 
|Services                                              |  |                   | 1,101,414  |  |                   |   | 2,135,296  |                                                  |  |   | 491,781   |  |  |     | 629,407    |  |       |   | 184,536   |       |  |   | 49,106  |  |  |   | 4,591,540  | 
|Municipalities                                        |  |                   |           |  |                   |   |           |                                                  |  |   | 1,181,671 |  |  |     | 155,528    |  |       |   |          |       |  |   | 16,750  |  |  |   | 1,353,949  | 
|Lease financing                                       |  |                   |           |  |                   |   |           |                                                  |  |   |          |  |  |     | 2,172,824  |  |       |   |          |       |  |   | 19,841  |  |  |   | 2,192,665  | 
|Consumer(1)                                           |  |                   |           |  |                   |   | 30         |                                                  |  |   |          |  |  |     | 18,100,141 |  |       |   | 3,245     |       |  |   | 233,405 |  |  |   | 18,336,821 | 
|Others                                                |  |                   | 20,437     |  |                   |   | 2,031,238  |                                                  |  |   | 506,805   |  |  |     | 410,493    |  |       |   | 172,733   |       |  |   | 3,517   |  |  |   | 3,145,223  | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Total domestic                                        |  |                   | 15,389,155 |  |                   |   | 15,135,225 |                                                  |  |   | 2,388,254 |  |  |     | 26,194,374 |  |       |   | 1,099,661 |       |  |   | 564,575 |  |  |   | 60,771,244 | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|                                                      |  |                   |            |  |                   |   |           
|                                                      |  | G 1-3             |            |  | G 4-6             |   |            |                                                 |  |   | Other     |  |  | G 7 |            |  | Other |   |           | Total | 
|Foreign:                                              |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Public sector                                         |  |                   | 86,490     |  |                   |   | 42,137     |                                                  |  |   |          |  |  |     | 34,310     |  |       |   |          |       |  |   | 1,544   |  |  |   | 164,481    | 
|Financial institutions                                |  |                   | 2,461,053  |  |                   |   | 210,771    |                                                  |  |   |          |  |  |     | 1,124,623  |  |       |   | 5,054     |       |  |   | 23,504  |  |  |   | 3,825,005  | 
|Commerce and industry                                 |  |                   | 13,364,752 |  |                   |   | 2,369,304  |                                                  |  |   |          |  |  |     | 3,457,416  |  |       |   | 455,691   |       |  |   | 134,666 |  |  |   | 19,781,829 | 
|Lease financing                                       |  |                   |           |  |                   |   |           |                                                  |  |   |          |  |  |     | 286,219    |  |       |   |          |       |  |   | 12,839  |  |  |   | 299,058    | 
|Others                                                |  |                   | 872,088    |  |                   |   | 136,065    |                                                  |  |   |          |  |  |     | 342,176    |  |       |   | 394       |       |  |   | 13,747  |  |  |   | 1,364,470  | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Total foreign                                         |  |                   | 16,784,383 |  |                   |   | 2,758,277  |                                                  |  |   |          |  |  |     | 5,244,744  |  |       |   | 461,139   |       |  |   | 186,300 |  |  |   | 25,434,843 | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 
|Total                                                 |  | ¥                 | 32,173,538 |  |                   | ¥ | 17,893,502 |                                                  |  | ¥ | 2,388,254 |  |  | ¥   | 31,439,118 |  |       | ¥ | 1,560,800 |       |  | ¥ | 750,875 |  |  | ¥ | 86,206,087 | 
|                                                      |  |                   |            |  |                   |   |            |                                                  |  |   |           |  |  |     |            |  |       |   |           |       |  |   |         |  |  |   |            | 



|(1) | The balance in the grade category of Other in Consumer includes housing loans, which amounted to ¥13,756,579 million and ¥94,374 million for
the borrower category of Normal and Requiring Caution, respectively.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-110



---

##### Table of Contents

Loans and advances past due but not impaired

The SMFG Group assesses the credit quality of loans and advances taking into account past due information on a borrower basis, and does
not comprehensively collate the data related to the age analysis of loans and advances that were past due but not impaired on an individual basis. The aggregate balances of loans and advances of borrowers with one or more facilities, where any of
the facilities are past due for less than three months but not impaired as at March 31, 2016 and 2015 were ¥173,749 million and ¥196,804 million, respectively. Those aggregate balances therefore include individual loans and advances which
are not past due. Thus, in the tables below, the SMFG Group provides the amount of loans and advances where the final payment at contractual maturity is past due, by geography and by industry, at March 31, 2016 and 2015. For reference, since all the
loans and advances that are past due over three months are treated as impaired, those loans and advances are not included in the tables below.



|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|----------------------------------------------------- |  | --------------------- | ------ |  | ------------------- | - | ------ | ------------------- |  | - | ------ |  |  | - | ------- | 
|                                                      |  | At March 31, 2016     |       
|                                                      |  | Past due up to1 month |        |  | Past due1-2 
months |   |        | Past due2-3 
months |  |   | Total  | 
|                                                      |  | (In millions)         |       
|Domestic:                                             |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Manufacturing                                         |  | ¥                     | 889    |  |                     | ¥ | 70     |                     |  | ¥ | 20     |  |  | ¥ | 979     | 
|Agriculture, forestry, fisheries and mining           |  |                       | 47     |  |                     |   |       |                     |  |   |       |  |  |   | 47      | 
|Construction                                          |  |                       | 598    |  |                     |   | 276    |                     |  |   | 40     |  |  |   | 914     | 
|Transportation, communications and public enterprises |  |                       | 428    |  |                     |   | 7      |                     |  |   | 2      |  |  |   | 437     | 
|Wholesale and retail                                  |  |                       | 3,419  |  |                     |   | 399    |                     |  |   | 55     |  |  |   | 3,873   | 
|Finance and insurance                                 |  |                       | 161    |  |                     |   | 35     |                     |  |   |       |  |  |   | 196     | 
|Real estate and goods rental and leasing              |  |                       | 472    |  |                     |   | 288    |                     |  |   | 907    |  |  |   | 1,667   | 
|Services                                              |  |                       | 3,557  |  |                     |   | 323    |                     |  |   | 136    |  |  |   | 4,016   | 
|Lease financing                                       |  |                       | 321    |  |                     |   | 10     |                     |  |   | 47     |  |  |   | 378     | 
|Consumer                                              |  |                       | 43,644 |  |                     |   | 14,159 |                     |  |   | 20,505 |  |  |   | 78,308  | 
|Others                                                |  |                       | 2      |  |                     |   | 12     |                     |  |   |       |  |  |   | 14      | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Total domestic                                        |  |                       | 53,538 |  |                     |   | 15,579 |                     |  |   | 21,712 |  |  |   | 90,829  | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Foreign:                                              |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Financial institutions                                |  |                       | 600    |  |                     |   | 2,176  |                     |  |   | 3,915  |  |  |   | 6,691   | 
|Commerce and industry                                 |  |                       | 7,925  |  |                     |   | 2,031  |                     |  |   | 33,987 |  |  |   | 43,943  | 
|Others                                                |  |                       | 2,249  |  |                     |   | 1,242  |                     |  |   | 459    |  |  |   | 3,950   | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Total foreign                                         |  |                       | 10,774 |  |                     |   | 5,449  |                     |  |   | 38,361 |  |  |   | 54,584  | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Total                                                 |  | ¥                     | 64,312 |  |                     | ¥ | 21,028 |                     |  | ¥ | 60,073 |  |  | ¥ | 145,413 | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 



F-111



---

##### Table of Contents

|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|----------------------------------------------------- |  | --------------------- | ------ |  | ------------------- | - | ------ | ------------------- |  | - | ------ |  |  | - | ------- | 
|                                                      |  | At March 31, 2015     |       
|                                                      |  | Past due up to1 month |        |  | Past due1-2 
months |   |        | Past due2-3 
months |  |   | Total  | 
|                                                      |  | (In millions)         |       
|Domestic:                                             |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Manufacturing                                         |  | ¥                     | 1,617  |  |                     | ¥ | 41     |                     |  | ¥ | 56     |  |  | ¥ | 1,714   | 
|Agriculture, forestry, fisheries and mining           |  |                       | 13     |  |                     |   |       |                     |  |   | 20     |  |  |   | 33      | 
|Construction                                          |  |                       | 630    |  |                     |   | 118    |                     |  |   | 74     |  |  |   | 822     | 
|Transportation, communications and public enterprises |  |                       | 480    |  |                     |   | 42     |                     |  |   | 9      |  |  |   | 531     | 
|Wholesale and retail                                  |  |                       | 4,262  |  |                     |   | 351    |                     |  |   | 138    |  |  |   | 4,751   | 
|Finance and insurance                                 |  |                       | 597    |  |                     |   | 73     |                     |  |   | 1,957  |  |  |   | 2,627   | 
|Real estate and goods rental and leasing              |  |                       | 679    |  |                     |   | 49     |                     |  |   | 248    |  |  |   | 976     | 
|Services                                              |  |                       | 1,771  |  |                     |   | 234    |                     |  |   | 140    |  |  |   | 2,145   | 
|Lease financing                                       |  |                       | 359    |  |                     |   | 19     |                     |  |   | 92     |  |  |   | 470     | 
|Consumer                                              |  |                       | 43,124 |  |                     |   | 19,926 |                     |  |   | 16,890 |  |  |   | 79,940  | 
|Others                                                |  |                       | 4      |  |                     |   | 13     |                     |  |   | 1      |  |  |   | 18      | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Total domestic                                        |  |                       | 53,536 |  |                     |   | 20,866 |                     |  |   | 19,625 |  |  |   | 94,027  | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Foreign:                                              |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Financial institutions                                |  |                       | 1,266  |  |                     |   | 1,058  |                     |  |   | 32,911 |  |  |   | 35,235  | 
|Commerce and industry                                 |  |                       | 7,428  |  |                     |   | 4,538  |                     |  |   | 21,289 |  |  |   | 33,255  | 
|Others                                                |  |                       | 3,620  |  |                     |   | 1,112  |                     |  |   | 270    |  |  |   | 5,002   | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Total foreign                                         |  |                       | 12,314 |  |                     |   | 6,708  |                     |  |   | 54,470 |  |  |   | 73,492  | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 
|Total                                                 |  | ¥                     | 65,850 |  |                     | ¥ | 27,574 |                     |  | ¥ | 74,095 |  |  | ¥ | 167,519 | 
|                                                      |  |                       |        |  |                     |   |        |                     |  |   |        |  |  |   |         | 



F-112



---

##### Table of Contents

Impaired loans and advances

The following table shows the impaired loans and advances, by geography and by industry, at March 31, 2016 and 2015.



|                                                                   |  |               |           |   |      |   |           |  
|------------------------------------------------------------------ |  | ------------- | --------- | - | ---- | - | --------- | -
|                                                                   |  | At March 31,  |          
|                                                                   |  | 2016          |           |   | 2015 |  
|                                                                   |  | (In millions) |          
|Domestic:                                                          |  |               |           |   |      |   |           |  
|Manufacturing                                                      |  | ¥             | 142,474   |   |      | ¥ | 167,108   |  
|Agriculture, forestry, fisheries and mining                        |  |               | 2,850     |   |      |   | 7,146     |  
|Construction                                                       |  |               | 29,272    |   |      |   | 43,161    |  
|Transportation, communications and public enterprises              |  |               | 47,294    |   |      |   | 59,984    |  
|Wholesale and retail                                               |  |               | 161,203   |   |      |   | 184,534   |  
|Finance and insurance                                              |  |               | 8,308     |   |      |   | 9,558     |  
|Real estate and goods rental and leasing                           |  |               | 158,585   |   |      |   | 227,159   |  
|Services                                                           |  |               | 149,801   |   |      |   | 183,021   |  
|Lease financing                                                    |  |               | 16,251    |   |      |   | 18,638    |  
|Consumer                                                           |  |               | 385,890   |   |      |   | 400,498   |  
|Others                                                             |  |               | 52,484    |   |      |   | 65,999    |  
|                                                                   |  |               |           |   |      |   |           |  
|Total domestic                                                     |  |               | 1,154,412 |   |      |   | 1,366,806 |  
|                                                                   |  |               |           |   |      |   |           |  
|Foreign:                                                           |  |               |           |   |      |   |           |  
|Public sector                                                      |  |               | 31        |   |      |   | 14        |  
|Financial institutions                                             |  |               | 2,520     |   |      |   | 20,415    |  
|Commerce and industry                                              |  |               | 178,672   |   |      |   | 195,645   |  
|Lease financing                                                    |  |               | 11,270    |   |      |   | 9,070     |  
|Others                                                             |  |               | 5,682     |   |      |   | 6,152     |  
|                                                                   |  |               |           |   |      |   |           |  
|Total foreign                                                      |  |               | 198,175   |   |      |   | 231,296   |  
|                                                                   |  |               |           |   |      |   |           |  
|Total impaired loans and advances before allowance for loan losses |  |               | 1,352,587 |   |      |   | 1,598,102 |  
|                                                                   |  |               |           |   |      |   |           |  
|Less: Allowance for loan losses for impaired loans and advances    |  |               | (613,510  | ) |      |   | (699,207  | )
|                                                                   |  |               |           |   |      |   |           |  
|Net impaired loans and advances                                    |  | ¥             | 739,077   |   |      | ¥ | 898,895   |  
|                                                                   |  |               |           |   |      |   |           |  

Renegotiated loans and advances

The following table shows loans and advances at March 31, 2016 and 2015 that would otherwise be past due or impaired, but whose terms have
been renegotiated without providing any financial concessions. These loans and advances are mainly classified as requiring caution in the table of Loans and advances neither past due nor impaired in the section Loans and advances
by credit quality category.

The SMFG Group continually assesses the creditworthiness of a borrower for whom terms of
the loans and advances have been renegotiated, taking into account the actual state of the borrowers financial position and qualitative factors. Further details are described in Credit risk evaluation in the section Credit
risk management methods. Loans and advances whose terms have been renegotiated and financial concessions have been provided are reported as impaired and included in the table of Impaired loans and advances in the section
Loans and advances by credit quality category.



|                                |  |               |         |  |      |   |         | 
|------------------------------- |  | ------------- | ------- |  | ---- | - | ------- | 
|                                |  | At March 31,  |        
|                                |  | 2016          |         |  | 2015 |  
|                                |  | (In millions) |        
|Renegotiated loans and advances |  | ¥             | 516,434 |  |      | ¥ | 664,973 | 



F-113



---

##### Table of Contents

Trading assets and investment securities

The following table shows an analysis of trading assets, financial assets at fair value through profit or loss, held-to-maturity
investments and available-for-sale financial assets based on the external rating system at March 31, 2016 and 2015, excluding equity instruments. Collateral is generally not obtained directly from the issuers.



|              |  |                   |           |  |                                                     |   |           |                             |  |   |                                     |  |  |       |            |  |  |   |            | 
|------------- |  | ----------------- | --------- |  | --------------------------------------------------- | - | --------- | --------------------------- |  | - | ----------------------------------- |  |  | ----- | ---------- |  |  | - | ---------- | 
|              |  | At March 31, 2016 |          
|              |  | Trading assets    |           |  | Financial assets atfair value throughprofit or loss |   |           | Held-to-maturityinvestments |  |   | Available-for-salefinancial
 assets |  |  | Total |           
|              |  | (In millions)     |          
|AAA           |  | ¥                 | 380,538   |  |                                                     | ¥ |          |                             |  | ¥ |                                    |  |  | ¥     | 3,849,722  |  |  | ¥ | 4,230,260  | 
|AA- to AA+    |  |                   | 2,543,308 |  |                                                     |   | 1,570,904 |                             |  |   | 2,267,542                           |  |  |       | 7,869,813  |  |  |   | 14,251,567 | 
|A- to A+      |  |                   | 188,014   |  |                                                     |   |          |                             |  |   |                                    |  |  |       | 122,019    |  |  |   | 310,033    | 
|Lower than A- |  |                   | 58,580    |  |                                                     |   |          |                             |  |   |                                    |  |  |       | 481,594    |  |  |   | 540,174    | 
|Unrated       |  |                   | 3,869     |  |                                                     |   | 11,667    |                             |  |   |                                    |  |  |       | 26,762     |  |  |   | 42,298     | 
|              |  |                   |           |  |                                                     |   |           |                             |  |   |                                     |  |  |       |            |  |  |   |            | 
|Total         |  | ¥                 | 3,174,309 |  |                                                     | ¥ | 1,582,571 |                             |  | ¥ | 2,267,542                           |  |  | ¥     | 12,349,910 |  |  | ¥ | 19,374,332 | 
|              |  |                   |           |  |                                                     |   |           |                             |  |   |                                     |  |  |       |            |  |  |   |            | 

Impaired available-for-sale financial assets with a carrying amount of ¥1,276 million at March 31,
2016 are included in the table above.



|              |  |                   |           |  |                                                     |   |           |                             |  |   |                                     |  |  |       |            |  |  |   |            | 
|------------- |  | ----------------- | --------- |  | --------------------------------------------------- | - | --------- | --------------------------- |  | - | ----------------------------------- |  |  | ----- | ---------- |  |  | - | ---------- | 
|              |  | At March 31, 2015 |          
|              |  | Trading assets    |           |  | Financial assets atfair value throughprofit or loss |   |           | Held-to-maturityinvestments |  |   | Available-for-salefinancial
 assets |  |  | Total |           
|              |  | (In millions)     |          
|AAA           |  | ¥                 | 460,501   |  |                                                     | ¥ |          |                             |  | ¥ |                                    |  |  | ¥     | 3,009,194  |  |  | ¥ | 3,469,695  | 
|AA- to AA+    |  |                   | 1,865,555 |  |                                                     |   | 1,615,640 |                             |  |   | 3,396,895                           |  |  |       | 10,729,868 |  |  |   | 17,607,958 | 
|A- to A+      |  |                   | 275,434   |  |                                                     |   |          |                             |  |   |                                    |  |  |       | 216,447    |  |  |   | 491,881    | 
|Lower than A- |  |                   | 15,612    |  |                                                     |   |          |                             |  |   |                                    |  |  |       | 436,979    |  |  |   | 452,591    | 
|Unrated       |  |                   | 1,491     |  |                                                     |   | 38,619    |                             |  |   |                                    |  |  |       | 20,960     |  |  |   | 61,070     | 
|              |  |                   |           |  |                                                     |   |           |                             |  |   |                                     |  |  |       |            |  |  |   |            | 
|Total         |  | ¥                 | 2,618,593 |  |                                                     | ¥ | 1,654,259 |                             |  | ¥ | 3,396,895                           |  |  | ¥     | 14,413,448 |  |  | ¥ | 22,083,195 | 
|              |  |                   |           |  |                                                     |   |           |                             |  |   |                                     |  |  |       |            |  |  |   |            | 

There are no impaired available-for-sale financial assets at March 31, 2015 in the table above.

Credit risk from derivative financial instruments

The SMFG Group maintains control limits on derivative positions, by both amount and term. At any one time, the amount subject to credit
risk is limited to the fair value of derivative financial instruments that are favorable to the SMFG Group (i.e., assets where their fair value is positive).

The SMFG Groups credit risk from derivatives is mitigated where possible through netting agreements whereby derivative assets and liabilities with the same counterparty can be offset. Netting
agreements, such as the ISDA master agreement, allow the netting of obligations arising under all of the derivative transactions that the agreement covers upon the counterpartys default, regardless of maturity and currency, resulting in a
single net claim against the counterparty. The SMFG Groups credit risk is also mitigated by collateral arrangements through the credit support annex, resulting in collateral delivered or received regularly based on the replacement costs of
derivatives.



F-114



---

##### Table of Contents

Market Risk and Liquidity Risk

Market risk is the possibility that fluctuations in interest rates, foreign exchange rates, stock prices or other market prices will
change the market value of financial products, leading to a loss. The purpose of market risk management is to keep the market risk exposure to a permissible level relative to capital.

Liquidity risk is defined as the uncertainty around the ability to meet debt obligations without incurring unacceptably large losses. An
example of such risk is the possible inability to meet current and future cash flow/collateral needs, both expected and unexpected. In such cases, the SMFG Group may be required to raise funds at less than favorable rates or be unable to raise
sufficient funds for settlement. The purpose of liquidity risk management is to ensure that the SMFG Group is in a position to address its liquidity obligations through monitoring the liquidity gap between assets and liabilities, and maintaining
highly liquid supplementary funding resources.

On the basis of the Group-wide basic policies for risk management, the SMFG
Group has a quantitative management process to control market and liquidity risks on a Group-wide basis by setting allowable risk limits by company. The SMFG Group at least annually reviews and identifies which companies primarily carry the market
and liquidity risks within the Group. The SMFG Group sets permissible levels and upper limits of risk for each identified company in consideration of those companies business plans. The SMFG Group ensures that each identified company
establishes a risk management system that is appropriate to the risks it faces, and has built-in transparent risk management processes, clearly separating front office, middle office and back office operations, and establishing a control system of
mutual checks and balances.

Framework for market and liquidity risk management

The Board of Directors authorizes important matters relating to the management of market and liquidity risks, such as the basic policies
and risk limits, which are decided by the Management Committee.

Additionally, at SMBC, the Corporate Risk Management
Department manages market and liquidity risks in an integrated manner. The Corporate Risk Management Department is the planning department of the Risk Management Unit, which is independent of the business units that directly handle market
transactions, and not only monitors the current risk situations but also reports regularly to the Management Committee and the Board of Directors. Furthermore, SMBCs Asset Liability Management (ALM) Committee meets on a monthly
basis to examine reports on the state of observance of SMBCs limits on market and liquidity risks, and to review and discuss SMBCs ALM operations.

To prevent unforeseen processing errors as well as fraudulent transactions, it is important to establish a system of checks on the business units (front office). At SMBC, both the processing departments
(back office) and the administrative departments (middle office) conduct the checks. In addition, the Internal Audit Unit of SMBC periodically performs internal audits to verify that the risk management framework is functioning properly.



F-115



---

##### Table of Contents

The following chart shows the market and liquidity risk management system of SMBC.



LOGO

Market risk management methods

The SMFG Group manages market risk from trading activities and non-trading activities, including strategic equity investment and other
transactions within the risk capital limit which is determined taking into account SMFGs shareholders equity and other principal indicators of the financial position. The SMFG Group also establishes an upper limit on VaR and losses
within the risk capital limits.

The SMFG Groups market risk can be divided into various factors: interest rates,
foreign exchange rates, equity prices and option risks. The SMFG Group manages each of these risks by employing the VaR method as well as supplemental indicators suitable for managing each risk, such as the basis point value (BPV).

VaR is the largest predicted loss that is possible given a fixed confidence interval. For example, the SMFG Groups VaR
indicates the largest loss that is possible for a holding period of one day and a confidence interval of 99.0%. BPV is the amount of change in assessed value as a result of a one-basis-point (0.01%) movement in interest rates.

Value at risk

The principal SMFG Group companies internal VaR model makes use of historical data to prepare scenarios for market fluctuations and, by conducting simulations of gains and losses on a net position
basis, the model estimates the maximum losses that may occur. The VaR calculation method the SMFG Group employs for both trading and non-trading activities is based mainly on the following:



| |  |  | the historical simulation method;
| | - |  | ---------------------------------



| |  |  | a one-sided confidence interval of 99.0%;
| | - |  | -----------------------------------------



F-116



---

##### Table of Contents

| |  |  | a one-day holding period (a one-year holding period for the strategic equity investment portfolio); and
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | an observation period of four years (ten years for the strategic equity investment portfolio).
| | - |  | ----------------------------------------------------------------------------------------------

The relationship between the VaR calculated with the model and the actual profit and loss data is back-tested periodically. There were no
significant excess losses in the back-testing results including the trading accounts. The back-testing results are reviewed by management, which also monitors the ongoing suitability of the VaR model.

The following tables show the SMFG Groups VaR by risk category and these figures are prepared based on the internal reporting
provided to management. The SMFG Groups material market risk exposure categories consist of interest rate risk, foreign exchange risk, equities and commodities risk and others. The section headed VaR for Trading Activity shows VaR
for instruments entered into for trading purposes and the VaR model for the trading book includes principal consolidated subsidiaries. The section headed VaR for Non-Trading Activity shows VaR for instruments entered into for purposes
other than trading purposes. Strategic Equity Investment in the VaR for Non-Trading Activity section is a portfolio that consists principally of publicly traded Japanese equities. This portfolio, like that of other financial
institutions in Japan, has historically included shares of the SMFG Groups customers.



| | (a) | VaR for Trading Activity
| | --- | ------------------------

The
aggregate VaR for the SMFG Groups total trading activities at March 31, 2016 was ¥11.0 billion, a decrease from ¥14.5 billion at March 31, 2015 primarily due to a decrease in the net risk exposure of equities.



|                                          |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|----------------------------------------- |  | ----------------- | ---- |  | -------------------- | - | --- | --------------------------- |  | - | ------ |  |  | -------- | --- |  |  | - | ---- | 
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2016: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 15.8 |  |                      | ¥ | 3.7 |                             |  | ¥ | 5.9    |  |  | ¥        | 1.7 |  |  | ¥ | 21.4 | 
|Minimum                                   |  |                   | 6.3  |  |                      |   | 0.3 |                             |  |   | 0.5    |  |  |          | 0.8 |  |  |   | 8.6  | 
|Daily average                             |  |                   | 10.0 |  |                      |   | 1.4 |                             |  |   | 1.8    |  |  |          | 1.2 |  |  |   | 13.3 | 
|At March 31, 2016                         |  |                   | 7.6  |  |                      |   | 1.1 |                             |  |   | 1.1    |  |  |          | 1.3 |  |  |   | 10.4 | 
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 16.5 |  |                      | ¥ | 3.7 |                             |  | ¥ | 6.2    |  |  | ¥        | 1.7 |  |  | ¥ | 22.5 | 
|Minimum                                   |  |                   | 7.0  |  |                      |   | 0.3 |                             |  |   | 0.7    |  |  |          | 0.8 |  |  |   | 9.6  | 
|Daily average                             |  |                   | 10.6 |  |                      |   | 1.4 |                             |  |   | 2.0    |  |  |          | 1.2 |  |  |   | 14.2 | 
|At March 31, 2016                         |  |                   | 8.1  |  |                      |   | 1.1 |                             |  |   | 1.2    |  |  |          | 1.3 |  |  |   | 11.0 | 
|                                          |  |                   |      |  |                     
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2015: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 11.9 |  |                      | ¥ | 3.6 |                             |  | ¥ | 9.6    |  |  | ¥        | 1.1 |  |  | ¥ | 19.0 | 
|Minimum                                   |  |                   | 4.6  |  |                      |   | 0.7 |                             |  |   | 3.1    |  |  |          | 0.6 |  |  |   | 8.9  | 
|Daily average                             |  |                   | 6.7  |  |                      |   | 1.7 |                             |  |   | 5.9    |  |  |          | 0.8 |  |  |   | 13.9 | 
|At March 31, 2015                         |  |                   | 6.5  |  |                      |   | 1.3 |                             |  |   | 5.9    |  |  |          | 1.0 |  |  |   | 13.8 | 
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 12.5 |  |                      | ¥ | 3.6 |                             |  | ¥ | 9.9    |  |  | ¥        | 1.1 |  |  | ¥ | 20.2 | 
|Minimum                                   |  |                   | 5.4  |  |                      |   | 0.7 |                             |  |   | 3.2    |  |  |          | 0.6 |  |  |   | 9.9  | 
|Daily average                             |  |                   | 7.4  |  |                      |   | 1.7 |                             |  |   | 6.2    |  |  |          | 0.8 |  |  |   | 14.8 | 
|At March 31, 2015                         |  |                   | 7.2  |  |                      |   | 1.3 |                             |  |   | 6.0    |  |  |          | 1.0 |  |  |   | 14.5 | 



|(1) | Total for Maximum, Minimum, and Daily average represent the maximum, minimum and daily average of the total of the trading book. For
certain subsidiaries, the SMFG Group employs the standardized method and/or the historical simulation method for the VaR calculation method.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-117



---

##### Table of Contents

| | (b) | VaR for Non-Trading Activity
| | --- | ----------------------------



| | (i) | Banking
| | --- | -------

The aggregate VaR for
the SMFG Groups total banking activities at March 31, 2016 was ¥34.0 billion, a decrease from ¥39.0 billion at March 31, 2015 primarily due to a decrease in the net risk exposure of equities.



|                                          |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|----------------------------------------- |  | ----------------- | ---- |  | -------------------- | - | --- | --------------------------- |  | - | ------ |  |  | -------- | --- |  |  | - | ---- | 
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2016: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 26.2 |  |                      | ¥ | 0.0 |                             |  | ¥ | 34.5   |  |  | ¥        | 0.0 |  |  | ¥ | 48.0 | 
|Minimum                                   |  |                   | 13.8 |  |                      |   | 0.0 |                             |  |   | 17.4   |  |  |          | 0.0 |  |  |   | 23.1 | 
|Daily average                             |  |                   | 20.0 |  |                      |   | 0.0 |                             |  |   | 28.7   |  |  |          | 0.0 |  |  |   | 37.8 | 
|At March 31, 2016                         |  |                   | 18.3 |  |                      |   | 0.0 |                             |  |   | 27.4   |  |  |          | 0.0 |  |  |   | 33.6 | 
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 26.9 |  |                      | ¥ | 0.0 |                             |  | ¥ | 34.6   |  |  | ¥        | 0.0 |  |  | ¥ | 48.9 | 
|Minimum                                   |  |                   | 14.1 |  |                      |   | 0.0 |                             |  |   | 17.5   |  |  |          | 0.0 |  |  |   | 23.5 | 
|Daily average                             |  |                   | 20.8 |  |                      |   | 0.0 |                             |  |   | 28.7   |  |  |          | 0.0 |  |  |   | 38.7 | 
|At March 31, 2016                         |  |                   | 18.7 |  |                      |   | 0.0 |                             |  |   | 27.5   |  |  |          | 0.0 |  |  |   | 34.0 | 



|                                          |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|----------------------------------------- |  | ----------------- | ---- |  | -------------------- | - | --- | --------------------------- |  | - | ------ |  |  | -------- | --- |  |  | - | ---- | 
|                                          |  | Interest raterisk |      |  | Foreignexchange risk |   |     | Equities andcommoditiesrisk |  |   | Others |  |  | Total(1) |    
|                                          |  | (In billions)     |     
|For the fiscal year ended March 31, 2015: |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|SMBC Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 23.7 |  |                      | ¥ | 0.0 |                             |  | ¥ | 40.3   |  |  | ¥        | 0.0 |  |  | ¥ | 45.1 | 
|Minimum                                   |  |                   | 13.6 |  |                      |   | 0.0 |                             |  |   | 28.4   |  |  |          | 0.0 |  |  |   | 35.6 | 
|Daily average                             |  |                   | 18.2 |  |                      |   | 0.0 |                             |  |   | 33.7   |  |  |          | 0.0 |  |  |   | 40.7 | 
|At March 31, 2015                         |  |                   | 16.8 |  |                      |   | 0.0 |                             |  |   | 31.0   |  |  |          | 0.0 |  |  |   | 37.8 | 
|SMFG Consolidated                         |  |                   |      |  |                      |   |     |                             |  |   |        |  |  |          |     |  |  |   |      | 
|Maximum                                   |  | ¥                 | 24.6 |  |                      | ¥ | 0.0 |                             |  | ¥ | 40.4   |  |  | ¥        | 0.0 |  |  | ¥ | 46.1 | 
|Minimum                                   |  |                   | 14.4 |  |                      |   | 0.0 |                             |  |   | 28.5   |  |  |          | 0.0 |  |  |   | 36.6 | 
|Daily average                             |  |                   | 19.2 |  |                      |   | 0.0 |                             |  |   | 33.8   |  |  |          | 0.0 |  |  |   | 41.7 | 
|At March 31, 2015                         |  |                   | 18.0 |  |                      |   | 0.0 |                             |  |   | 31.1   |  |  |          | 0.0 |  |  |   | 39.0 | 



|(1) | Total for Maximum, Minimum, and Daily average represent the maximum, minimum and daily average of the total of the banking book.
|--- | --------------------------------------------------------------------------------------------------------------------------------------



F-118



---

##### Table of Contents

| | (ii) | Strategic Equity Investment
| | ---- | ---------------------------

The
aggregate VaR for the SMFG Groups strategic equity investment at March 31, 2016 was ¥1,387.6 billion, a decrease from ¥1,447.7 billion at March 31, 2015 primarily due to a decrease in the fair value of the strategic equity investment
portfolio.



|                                          |  |               |         | 
|----------------------------------------- |  | ------------- | ------- | 
|                                          |  | Equities risk |        
|                                          |  | (In billions) |        
|For the fiscal year ended March 31, 2016: |  |               |         | 
|SMBC Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,529.5 | 
|Minimum                                   |  |               | 1,132.5 | 
|Daily average                             |  |               | 1,397.7 | 
|At March 31, 2016                         |  |               | 1,247.0 | 
|                                          | 
|SMFG Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,677.1 | 
|Minimum                                   |  |               | 1,259.2 | 
|Daily average                             |  |               | 1,542.1 | 
|At March 31, 2016                         |  |               | 1,387.6 | 



|                                          |  |               |         | 
|----------------------------------------- |  | ------------- | ------- | 
|                                          |  | Equities risk |        
|                                          |  | (In billions) |        
|For the fiscal year ended March 31, 2015: |  |               |         | 
|SMBC Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,500.4 | 
|Minimum                                   |  |               | 1,067.9 | 
|Daily average                             |  |               | 1,261.9 | 
|At March 31, 2015                         |  |               | 1,400.5 | 
|                                          | 
|SMFG Consolidated                         |  |               |         | 
|Maximum                                   |  | ¥             | 1,549.1 | 
|Minimum                                   |  |               | 1,105.3 | 
|Daily average                             |  |               | 1,304.3 | 
|At March 31, 2015                         |  |               | 1,447.7 | 

Stress tests

The market occasionally undergoes extreme fluctuations that exceed projections. Therefore, to manage market risk, it is important to run simulations of situations that may occur only once in many years,
or so-called stress tests. To prepare for unexpected market swings, SMBC performs stress tests on a monthly basis based on various scenarios.

The limitations of the VaR methodology include the following:



| |  |  | The use of historical data as a proxy for estimating future events may underestimate the probability of extreme market movements. Past market movement
is not necessarily a good indicator of future events;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The use of a holding period assumes that all positions can be liquidated or hedged in that period of time. This assumption does not fully capture the
market risk arising during periods of illiquidity, when liquidation or hedging in that period of time may not be possible;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The use of a confidence level neither takes account of, nor makes any statement about, any losses that might occur beyond this level of confidence; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | VaR does not capture all of the complex effects of the risk factors on the value of positions and portfolios and could underestimate potential losses.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



F-119



---

##### Table of Contents

Additional information for the certain risks



| | (a) | Interest rate risk
| | --- | ------------------

To
supplement the above limitations of VaR methodologies, the SMFG Group adopts various indices to measure and monitor the sensitivity of interest rates, including delta, gamma and vega risks. The SMFG Group considers BPV as one of the most significant
indices to manage interest rate risk. BPV is the amount of change in the value to the banking and trading book as a result of a one-basis-point (0.01%) movement in interest rates. The principal SMFG Group companies use BPV to monitor interest rate
risk, not only on a net basis, but also by term to prevent the concentration of interest rate risk in a specific period. The table Outlier ratio presented below is one of the sensitivity analyses for interest rate risk concerning the
banking book using the BPV approach. In addition, as previously addressed, the SMFG Group enhances the risk management methods of VaR and BPV by using them in combination with back-testing and stress tests.

Interest rate risk substantially changes depending on the method used for recognizing the expected maturity dates of demand deposits that
can be withdrawn at any time, or the method used for estimating the timing of cancellation prior to maturity of time deposits and consumer housing loans. At SMBC, the maturity of demand deposits that are expected to be left with the bank for a
prolonged period is regarded to be, at the longest, five years (2.5 years on average), and the cancellation prior to maturity of time deposits and consumer housing loans is estimated based on historical data.

In the event the economic value of a bank declines by more than 20% of total capital as a result of interest rate shocks, that bank would
fall into the category of outlier bank, as stipulated under Pillar 2 of the Basel Capital Accord. This ratio, known as the outlier ratio, was 2.1% for SMBC on a consolidated basis at March 31, 2016, substantially below the 20% criterion.
The decline in economic value based on the outlier framework of SMBC on a consolidated basis is shown in the following table.



|                                     |  |                                   |       |   |      |   |       |  
|------------------------------------ |  | --------------------------------- | ----- | - | ---- | - | ----- | -
|                                     |  | At March 31,                      |      
|                                     |  | 2016                              |       |   | 2015 |  
|                                     |  | (In billions, except percentages) |      
|SMBC Consolidated                    |  |                                   |       |   |      |   |       |  
|Total                                |  | ¥                                 | 215.0 |   |      | ¥ | 132.6 |  
|Impact of yen interest rates         |  |                                   | 48.0  |   |      |   | 21.2  |  
|Impact of U.S. dollar interest rates |  |                                   | 109.7 |   |      |   | 57.4  |  
|Impact of euro interest rates        |  |                                   | 40.1  |   |      |   | 25.5  |  
|Percentage of total capital          |  |                                   | 2.1   | % |      |   | 1.3   | %



|Note: | Decline in economic value is the decline of the present value of a banking portfolio after interest rate shocks (1st and 99th percentile of observed interest rate
changes using a one-year holding period and an observation period of five years).
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Foreign exchange risk
| | --- | ---------------------

The
principal SMFG Group companies set risk limits for each currency to manage the concentration of the foreign currency position. The foreign exchange risk is immaterial as shown above in VaR by risk category.



| | (c) | Strategic equity investment risk
| | --- | --------------------------------

The SMFG Group establishes limits on allowable risk for strategic equity investments and monitors the observance of those limits to keep
stock price fluctuation risk within acceptable parameters. The SMFG Group has been reducing its strategic equity investments, and the balance is within a permitted level, which is less than 100% of the SMFG Groups Tier 1 Capital.



F-120



---

##### Table of Contents

Liquidity risk management methods

The SMFG Group and SMBC regard liquidity risk as one of the major risks, and the SMFG Group identifies group companies which have
significant liquidity risk. Each of the identified group companies, including SMBC, establishes a fundamental risk management framework. For example, SMBC manages liquidity risk based on a framework consisting of setting upper limits for
funding gaps, maintaining highly liquid supplementary funding sources and establishing contingency plans.

A
funding gap is defined as a maturity mismatch between a source of funds and the use of funds. SMBC actively manages this funding gap by setting limits on the size of gaps over a given time horizon and limiting reliance on short-term funding. These
limits are established on both a SMBC-wide basis and individual branch basis, taking into account cash management planning, systemic factors, and funding status, among other factors. Additionally, funding gap limits are set for individual currencies
if necessary. SMBC actively monitors funding gaps on a daily basis. Further, stress tests are regularly carried out by simulating the impact triggered, for example, by the outflow of deposits or having difficulties in funding from money markets, in
order to thoroughly comprehend the amount required to fund when the liquidity risk is realized. Additionally, funding liquidity is maintained by holding assets, such as U.S. government bonds, which can be immediately converted to cash, or
establishing borrowing facilities to be used as supplementary funding sources in an emergency, in order to smoothly raise the required funds even during market disruption.

Furthermore, contingency plans are developed to respond to the liquidity risk when being realized, by creating detailed action plans such as lowering the upper limit for the funding gap, depending on the
existing situation (i.e. normal, concerned, or critical) and the respective circumstances.

Maturity analysis of financial
liabilities at March 31, 2016 and 2015

The following tables show a maturity analysis of the contractual undiscounted cash
flows for financial liabilities at March 31, 2016 and 2015. The amount of interest on debt instruments is not included in the maturity tables below due to its insignificance.



|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|------------------------------------------------------------ |  | ----------------- | ----------- |  | -------------------------- | - | ---------- | ------------------------------------------------ |  | - | ------------------------------------------------ |  |  | ------------------------------------------------- | --------- |  | -------------------- | - | --------- | ----- |  | - | --------- |  |  | - | ----------- | 
|                                                             |  | At March 31, 2016 |            
|                                                             |  | On demand         |             |  | Not later thanthree months |   |            | Later thanthree monthsand not laterthan one year |  |   | Later than one year andnot later thanthree years |  |  | Later thanthree years andnot later thanfive years |           |  | Later thanfive years |   |           | Total | 
|                                                             |  | (In millions)     |            
|Non-derivative financial instruments:                        |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Deposits                                                     |  | ¥                 | 70,422,036  |  |                            | ¥ | 34,168,661 |                                                  |  | ¥ | 15,628,231                                       |  |  | ¥                                                 | 3,914,994 |  |                      | ¥ | 864,321   |       |  | ¥ | 918,857   |  |  | ¥ | 125,917,100 | 
|Call money and bills sold                                    |  |                   | 28,646      |  |                            |   | 1,188,985  |                                                  |  |   | 1,566                                            |  |  |                                                   | 1,259     |  |                      |   |          |       |  |   |          |  |  |   | 1,220,456   | 
|Repurchase agreements and cash collateral on securities lent |  |                   | 1,501       |  |                            |   | 6,795,980  |                                                  |  |   | 41,993                                           |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 6,839,474   | 
|Trading liabilities                                          |  |                   | 2,197,673   |  |                            |   |           |                                                  |  |   |                                                 |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 2,197,673   | 
|Borrowings                                                   |  |                   | 41,248      |  |                            |   | 3,466,175  |                                                  |  |   | 2,414,475                                        |  |  |                                                   | 829,855   |  |                      |   | 757,557   |       |  |   | 2,297,931 |  |  |   | 9,807,241   | 
|Debt securities in issue                                     |  |                   |            |  |                            |   | 3,943,641  |                                                  |  |   | 1,203,832                                        |  |  |                                                   | 1,693,961 |  |                      |   | 1,504,307 |       |  |   | 2,503,234 |  |  |   | 10,848,975  | 
|Lease payable                                                |  |                   |            |  |                            |   | 6,161      |                                                  |  |   | 18,212                                           |  |  |                                                   | 42,598    |  |                      |   | 33,324    |       |  |   | 9,710     |  |  |   | 110,005     | 
|Other financial liabilities                                  |  |                   | 1,898,916   |  |                            |   | 3,924,652  |                                                  |  |   | 17,561                                           |  |  |                                                   | 16,148    |  |                      |   | 13,624    |       |  |   | 64,610    |  |  |   | 5,935,511   | 
|Off balance sheet items:                                     |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Loan commitments                                             |  |                   | 58,026,597  |  |                            |   |           |                                                  |  |   |                                                 |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 58,026,597  | 
|Financial guarantee contracts                                |  |                   | 7,349,903   |  |                            |   |           |                                                  |  |   |                                                 |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 7,349,903   | 
|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Total non-derivative financial instruments                   |  | ¥                 | 139,966,520 |  |                            | ¥ | 53,494,255 |                                                  |  | ¥ | 19,325,870                                       |  |  | ¥                                                 | 6,498,815 |  |                      | ¥ | 3,173,133 |       |  | ¥ | 5,794,342 |  |  | ¥ | 228,252,935 | 
|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Derivative financial instruments                             |  | ¥                 | 5,086,083   |  |                            | ¥ |           |                                                  |  | ¥ |                                                 |  |  | ¥                                                 |          |  |                      | ¥ |          |       |  | ¥ |          |  |  | ¥ | 5,086,083   | 
|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 



F-121



---

##### Table of Contents

|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|------------------------------------------------------------ |  | ----------------- | ----------- |  | -------------------------- | - | ---------- | ------------------------------------------------ |  | - | ------------------------------------------------ |  |  | ------------------------------------------------- | --------- |  | -------------------- | - | --------- | ----- |  | - | --------- |  |  | - | ----------- | 
|                                                             |  | At March 31, 2015 |            
|                                                             |  | On demand         |             |  | Not later thanthree months |   |            | Later thanthree monthsand not laterthan one year |  |   | Later than one year andnot later thanthree years |  |  | Later thanthree years andnot later thanfive years |           |  | Later thanfive years |   |           | Total | 
|                                                             |  | (In millions)     |            
|Non-derivative financial instruments:                        |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Deposits                                                     |  | ¥                 | 62,276,711  |  |                            | ¥ | 32,080,713 |                                                  |  | ¥ | 15,994,708                                       |  |  | ¥                                                 | 3,961,005 |  |                      | ¥ | 653,803   |       |  | ¥ | 847,997   |  |  | ¥ | 115,814,937 | 
|Call money and bills sold                                    |  |                   | 19,926      |  |                            |   | 5,843,087  |                                                  |  |   | 10,111                                           |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 5,873,124   | 
|Repurchase agreements and cash collateral on securities lent |  |                   | 1,458       |  |                            |   | 8,818,625  |                                                  |  |   |                                                 |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 8,820,083   | 
|Trading liabilities                                          |  |                   | 2,193,400   |  |                            |   |           |                                                  |  |   |                                                 |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 2,193,400   | 
|Borrowings                                                   |  |                   | 87,714      |  |                            |   | 3,577,107  |                                                  |  |   | 3,691,319                                        |  |  |                                                   | 665,327   |  |                      |   | 926,245   |       |  |   | 2,166,598 |  |  |   | 11,114,310  | 
|Debt securities in issue                                     |  |                   |            |  |                            |   | 4,434,310  |                                                  |  |   | 1,402,856                                        |  |  |                                                   | 1,799,923 |  |                      |   | 942,988   |       |  |   | 2,461,070 |  |  |   | 11,041,147  | 
|Lease payable                                                |  |                   |            |  |                            |   | 5,614      |                                                  |  |   | 16,291                                           |  |  |                                                   | 35,407    |  |                      |   | 29,340    |       |  |   | 19,389    |  |  |   | 106,041     | 
|Other financial liabilities                                  |  |                   | 1,370,975   |  |                            |   | 3,315,104  |                                                  |  |   | 203,328                                          |  |  |                                                   | 20,163    |  |                      |   | 15,119    |       |  |   | 95,316    |  |  |   | 5,020,005   | 
|Off balance sheet items:                                     |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Loan commitments                                             |  |                   | 53,665,583  |  |                            |   |           |                                                  |  |   |                                                 |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 53,665,583  | 
|Financial guarantee contracts                                |  |                   | 7,076,536   |  |                            |   |           |                                                  |  |   |                                                 |  |  |                                                   |          |  |                      |   |          |       |  |   |          |  |  |   | 7,076,536   | 
|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Total non-derivative financial instruments                   |  | ¥                 | 126,692,303 |  |                            | ¥ | 58,074,560 |                                                  |  | ¥ | 21,318,613                                       |  |  | ¥                                                 | 6,481,825 |  |                      | ¥ | 2,567,495 |       |  | ¥ | 5,590,370 |  |  | ¥ | 220,725,166 | 
|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 
|Derivative financial instruments                             |  | ¥                 | 6,739,787   |  |                            | ¥ |           |                                                  |  | ¥ |                                                 |  |  | ¥                                                 |          |  |                      | ¥ |          |       |  | ¥ |          |  |  | ¥ | 6,739,787   | 
|                                                             |  |                   |             |  |                            |   |            |                                                  |  |   |                                                  |  |  |                                                   |           |  |                      |   |           |       |  |   |           |  |  |   |             | 



Notes:

|1. | Embedded derivatives which are separately accounted for, but presented together with the host contract in the consolidated statement of financial position are not
included in the contractual tables above as they relate to the interest cash flow of the host contract, which are also not included in the tables above.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Derivative financial instruments are recorded at fair value and included in the column On demand. These instruments are not used for hedging under IAS 39
and the fair value represents the cash flow on demand.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Balance of loans and advances, and deposits at March
31, 2016 and 2015

The following table presents the balance of loans and advances, and deposits at March 31, 2016 and 2015.
The balance of deposits, which was mainly composed of individual customer deposits at March 31, 2016 and 2015, exceeded the balance of loans and advances at the same time due to the stable deposit base in Japan.



|                   |  |               |             |  |      |   |             | 
|------------------ |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                   |  | At March 31,  |            
|                   |  | 2016          |             |  | 2015 |  
|                   |  | (In millions) |            
|Loans and advances |  | ¥             | 88,862,371  |  |      | ¥ | 86,971,716  | 
|Deposits           |  |               | 125,940,797 |  |      |   | 115,833,980 | 



F-122



---

##### Table of Contents

The following table presents a breakdown of deposits by domestic and foreign offices.
Domestic inter-bank money was classified as Call money and bills sold and not included in Deposits in the consolidated statement of financial position. Over half of domestic deposits was composed of individual customer
deposits.



|                                     |  |               |             |  |      |   |             | 
|------------------------------------ |  | ------------- | ----------- |  | ---- | - | ----------- | 
|                                     |  | At March 31,  |            
|                                     |  | 2016          |             |  | 2015 |  
|                                     |  | (In millions) |            
|Domestic offices:                    |  |               |             |  |      |   |             | 
|Non-interest-bearing demand deposits |  | ¥             | 17,566,123  |  |      | ¥ | 15,387,795  | 
|Interest-bearing demand deposits     |  |               | 44,975,104  |  |      |   | 40,593,134  | 
|Deposits at notice                   |  |               | 874,581     |  |      |   | 821,717     | 
|Time deposits                        |  |               | 22,921,709  |  |      |   | 24,186,585  | 
|Negotiable certificates of deposit   |  |               | 6,451,869   |  |      |   | 5,705,862   | 
|Others                               |  |               | 7,242,800   |  |      |   | 5,736,495   | 
|                                     |  |               |             |  |      |   |             | 
|Total domestic offices               |  |               | 100,032,186 |  |      |   | 92,431,588  | 
|                                     |  |               |             |  |      |   |             | 
|Foreign offices:                     |  |               |             |  |      |   |             | 
|Non-interest-bearing demand deposits |  |               | 1,097,531   |  |      |   | 862,698     | 
|Interest-bearing demand deposits     |  |               | 1,865,098   |  |      |   | 1,448,643   | 
|Deposits at notice                   |  |               | 8,819,990   |  |      |   | 7,968,300   | 
|Time deposits                        |  |               | 6,222,716   |  |      |   | 4,897,880   | 
|Negotiable certificates of deposit   |  |               | 7,797,966   |  |      |   | 8,120,036   | 
|Others                               |  |               | 105,310     |  |      |   | 104,835     | 
|                                     |  |               |             |  |      |   |             | 
|Total foreign offices                |  |               | 25,908,611  |  |      |   | 23,402,392  | 
|                                     |  |               |             |  |      |   |             | 
|Total deposits                       |  | ¥             | 125,940,797 |  |      | ¥ | 115,833,980 | 
|                                     |  |               |             |  |      |   |             | 

Capital Management

The SMFG Group manages its capital by taking into consideration regulatory compliance and business development.

The SMFG Groups capital management objectives are to maintain sufficient capital resources to meet the capital adequacy requirements and to maintain a strong capital base to support the development
of its business.

External regulatory capital requirement

The SMFG Group, SMFG and its principal banking subsidiaries in Japan rigidly abide by the capital adequacy guidelines set by the FSA in
managing its capital. Japans capital adequacy guidelines are based on the Basel Capital Accord, which was proposed by the Basel Committee on Banking Supervision (BCBS) for uniform application to all banks which have international
operations in industrialized countries. Japans capital adequacy guidelines may be different from those of central banks or supervisory bodies of other countries because the FSA designed them to suit the Japanese banking environment. The SMFG
Groups banking subsidiaries outside of Japan are also subject to the local capital ratio requirements.

In December
2010, the BCBS published the new Basel III rules text to implement the Basel III framework, which sets out higher and better-quality capital, better risk coverage, the introduction of a leverage ratio as a backstop to the risk-based requirement,
measures to promote the build-up of capital that can be drawn down in periods of stress, and the introduction of two global liquidity standards. The main measures of the minimum capital requirements in the Basel III framework began on January 1,
2013 and will be fully applied from January 1, 2019.



F-123



---

##### Table of Contents

These capital reforms increase the minimum common equity requirement from 2% to 4.5% and
require banks to hold a capital conservation buffer, which is being phased in from January 2016 with the initial ratio of 0.625% reaching 2.5% by January 2019, to withstand future periods of stress, bringing the total common equity requirement to
7%. The Tier 1 capital requirement will also be increased from 4% to 6%, resulting in a total requirement of 8.5% when combined with the above-mentioned conservation buffer. The total capital requirement remains at the existing level of 8% but will
increase to 10.5% by January 2019 due to the capital conservation buffer. Furthermore, a countercyclical buffer within a range of 0% to 2.5% of common equity or other fully loss-absorbing capital has been implemented according to national
circumstances. The Group of Central Bank Governors and Heads of Supervision also agreed on transitional arrangements for implementing the new requirements.

In addition to the above-mentioned minimum capital requirements and capital buffer requirements under Basel III, organizations identified by the Financial Stability Board (FSB) as Global
Systemically Important Financial Institutions (G-SIFIs), which as of November 2014 and 2015 included us, are required to maintain an additional 1% to 2.5% of Common Equity Tier 1 capital as a percentage of risk-weighted assets based on
the organizations size, interconnectedness, substitutability, complexity and cross-jurisdictional activity as determined by the FSB. The amount of G-SIFI capital surcharge that applies to the SMFG Group based on the FSBs determination as
of November 2014 and 2015 will be 1% of risk-weighted assets when the requirements are fully applied from 2019. Under the phase-in arrangement of the G-SIFI capital surcharge requirement, the SMFG Group is currently required to maintain 0.25% of
Common Equity Tier 1 capital as a percentage of risk-weighted assets.

To reflect the Basel III framework, the FSA changed its
capital adequacy guidelines. Under the FSA capital adequacy guidelines, the new capital requirements are being phased in from March 31, 2013 through March 31, 2019. The minimum Common Equity Tier 1 capital requirement and Tier 1 capital requirement
has been 4.5% and 6%, respectively since March, 2015. The capital conservation buffer, countercyclical buffer and the G-SIFI capital surcharge are being phased in from March 31, 2016 under the FSA capital adequacy guidelines.

In accordance with the changes of the FSA capital adequacy guidelines, the SMFG Group changed its classification of capital into three
tiers, referred to as Common Equity Tier 1 capital, Additional Tier 1 capital and Tier 2 capital as follows:

Common Equity
Tier 1 capital consists primarily of capital stock, capital surplus and retained earnings relating to common shares, and minority interests that meet the criteria for inclusion in Common Equity Tier 1 capital.

Additional Tier 1 capital consists primarily of preferred securities and perpetual subordinated bonds.

Tier 2 capital consists primarily of subordinated debt securities.

The capital adequacy guidelines permit Japanese banks to choose from the standardized approach (SA), the foundation Internal
Ratings-Based (IRB) approach and the advanced IRB approach for credit risk, and the basic indicator approach (BIA), the standardized approach (TSA) and the Advanced Measurement Approach (AMA) for
operational risk. To be eligible to adopt the foundation IRB approach or the advanced IRB approach for credit risk, and TSA or AMA for operational risk, a Japanese bank must establish advanced risk management systems and receive prior approval from
the FSA.

Adopting these approved approaches, the SMFG Group sets a target minimum total capital ratio of 8.0% on the SMFG
Groups consolidated basis, and both SMBC consolidated and nonconsolidated basis, and has complied with all externally imposed capital requirements throughout the period.

Failure of a Japanese bank, bank holding company or other financial institution to maintain the required risk-weighted capital ratios, may result in administrative actions or sanctions imposed by the FSA.



F-124



---

##### Table of Contents

Regulatory capital

The table below presents the SMFG Groups total capital ratio, total capital and risk-weighted assets under Japanese GAAP at March
31, 2016 and 2015 based on the Basel III rules.



|                                                                                          |  |                                   |          |   |      |   |          |  
|----------------------------------------------------------------------------------------- |  | --------------------------------- | -------- | - | ---- | - | -------- | -
|                                                                                          |  | At March 31,                      |         
|                                                                                          |  | 2016                              |          |   | 2015 |  
|                                                                                          |  | (In billions, except percentages) |         
|Total risk-weighted capital ratio (consolidated)                                          |  |                                   | 17.02    | % |      |   | 16.58    | %
|Tier 1 risk-weighted capital ratio (consolidated)                                         |  |                                   | 13.68    | % |      |   | 12.89    | %
|Common Equity Tier 1 risk-weighted capital ratio (consolidated)                           |  |                                   | 11.81    | % |      |   | 11.30    | %
|Total capital (Common Equity Tier 1 capital + Additional Tier 1 capital + Tier 2 capital) |  | ¥                                 | 11,235.9 |   |      | ¥ | 10,965.9 |  
|Tier 1 capital (Common Equity Tier 1 capital + Additional Tier 1 capital)                 |  |                                   | 9,031.7  |   |      |   | 8,528.6  |  
|Common Equity Tier 1 capital                                                              |  |                                   | 7,796.5  |   |      |   | 7,476.5  |  
|Risk-weighted assets                                                                      |  |                                   | 66,011.6 |   |      |   | 66,136.8 |  
|The amount of minimum capital requirements                                                |  |                                   | 5,280.9  |   |      |   | 5,290.9  |  



|46 | RELATED-PARTY TRANSACTIONS
|-- | --------------------------

Transactions with Related Parties

The SMFG Group considers that its related parties include subsidiaries, associates, joint ventures, key management personnel and close family members of key management personnel. Any transactions between
the SMFG Group and its subsidiaries meet the definition of related-party transactions. However, because these transactions are eliminated on consolidation, they are not disclosed as related-party transactions. Transactions between the SMFG Group and
its associates and joint ventures qualify as related-party transactions, and all of these transactions are conducted on substantially the same terms as third-party transactions.

The transaction amounts included in the accounts, in aggregate, by category of related party were as follows:

Transactions with associates and joint ventures



|                   |  |               |         |  |      |   |         | 
|------------------ |  | ------------- | ------- |  | ---- | - | ------- | 
|                   |  | At March 31,  |        
|                   |  | 2016          |         |  | 2015 |  
|                   |  | (In millions) |        
|Assets:            |  |               |         |  |      |   |         | 
|Loans and advances |  | ¥             | 225,970 |  |      | ¥ | 244,620 | 
|Others             |  |               | 7,931   |  |      |   | 12,954  | 
|                   |  |              
|Liabilities:       |  |               |         |  |      |   |         | 
|Deposits           |  | ¥             | 273,636 |  |      | ¥ | 161,595 | 
|Others             |  |               | 12,513  |  |      |   | 30,036  | 



|                                                                |  |                                     |        |  |      |   |        |      |  |   |        | 
|--------------------------------------------------------------- |  | ----------------------------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                                                |  | For the fiscal year ended March 31, |       
|                                                                |  | 2016                                |        |  | 2015 |   |        | 2014 | 
|                                                                |  | (In millions)                       |       
|Income statement:                                               |  |                                     |        |  |      |   |        |      |  |   |        | 
|Income (interest income, fee and commission income, and others) |  | ¥                                   | 34,135 |  |      | ¥ | 23,952 |      |  | ¥ | 19,608 | 
|Expense (interest expense and others)                           |  |                                     | 19,169 |  |      |   | 20,322 |      |  |   | 19,124 | 



F-125



---

##### Table of Contents

Financial guarantees issued by the SMFG Group for its associates at March 31, 2016 and 2015
were ¥51,256 million and ¥42,361 million, respectively.

Loan commitments to associates and joint ventures at March
31, 2016 and 2015 were ¥134,198 million and ¥148,494 million, respectively.

Transactions with key management
personnel and their close family members

Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the activities of the SMFG Group, directly or indirectly. The SMFG Group considers the members of the Board of Directors of SMFG and SMBC to constitute key management personnel for the purpose
of this disclosure required under IAS 24 Related Party Disclosures.



|                   |  |               |       |  |      |   |       | 
|------------------ |  | ------------- | ----- |  | ---- | - | ----- | 
|                   |  | At March 31,  |      
|                   |  | 2016          |       |  | 2015 |  
|                   |  | (In millions) |      
|Assets:            |  |               |       |  |      |   |       | 
|Loans and advances |  | ¥             | 31    |  |      | ¥ | 1     | 
|                   |  |              
|Liabilities:       |  |               |       |  |      |   |       | 
|Deposits           |  | ¥             | 1,828 |  |      | ¥ | 2,195 | 
|Others             |  |               | 89    |  |      |   | 73    | 

Compensation of Key Management Personnel

The following table presents the compensation expenses of key management personnel.



|                             |  |                                     |       |  |      |   |       |      |  |   |       | 
|---------------------------- |  | ----------------------------------- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                             |  | For the fiscal year ended March 31, |      
|                             |  | 2016                                |       |  | 2015 |   |       | 2014 | 
|                             |  | (In millions)                       |      
|Short-term employee benefits |  | ¥                                   | 1,161 |  |      | ¥ | 1,463 |      |  | ¥ | 1,232 | 
|Share-based compensation     |  |                                     | 214   |  |      |   | 251   |      |  |   | 206   | 

The details of the share-based compensation plan are described in Note 39 Share-Based
Payment.

There were no post-employment benefits, other long-term benefits and termination benefits for the fiscal years
ended March 31, 2016, 2015 and 2014.



F-126



---

##### Table of Contents

|47 | PRINCIPAL SUBSIDIARIES
|-- | ----------------------

Principal
Subsidiaries

The SMFG Groups principal subsidiaries at March 31, 2016 are shown in the list below. The SMFG Group
consolidates all entities that the SMFG Group controls. The SMFG Group controls an entity when the SMFG Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its
power over the entity.

Principal domestic subsidiaries



|                                                     |  |                                   |       |  |                               |  |       |               |  |                                                                                 
|---------------------------------------------------- |  | --------------------------------- | ----- |  | ----------------------------- |  | ----- | ------------- |  | --------------------------------------------------------------------------------
|Company Name                                         |  | Proportion ofOwnershipInterest(1) |       |  | Proportion ofVoting Rights(1) |  |       | Main Business
|                                                     |  | (%)                               |       |  | (%)                           |  |       |              
|Sumitomo Mitsui Banking Corporation                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking                                                              
|SMBC Trust Bank Ltd.                                 |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Trust banking                                                                   
|THE MINATO BANK, LTD.                                |  |                                   | 6.0   |  |                               |  | 46.4  | (2)           |  | Commercial banking                                                              
|Kansai Urban Banking Corporation                     |  |                                   | 59.8  |  |                               |  | 60.1  |               |  | Commercial banking                                                              
|SMBC Guarantee Co., Ltd.                             |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Credit guarantee                                                                
|Sumitomo Mitsui Finance and Leasing Company, Limited |  |                                   | 60.0  |  |                               |  | 60.0  |               |  | Leasing                                                                         
|SMBC Nikko Securities Inc.                           |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Securities                                                                      
|SMBC Friend Securities Co., Ltd.                     |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Securities                                                                      
|Sumitomo Mitsui Card Company, Limited                |  |                                   | 65.9  |  |                               |  | 65.9  |               |  | Credit card                                                                     
|Cedyna Financial Corporation(3)                      |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Credit card and consumer credit                                                 
|SMBC Consumer Finance Co., Ltd.                      |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Consumer lending                                                                
|SAKURA CARD CO., LTD.(3)                             |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Credit card                                                                     
|Mobit Co., LTD.                                      |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Consumer lending                                                                
|SMM Auto Finance, Inc.                               |  |                                   | 51.0  |  |                               |  | 51.0  |               |  | Automobile sales financing                                                      
|SMBC Finance Service Co., Ltd.                       |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Collecting agent and factoring                                                  
|The Japan Research Institute, Limited                |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | System development, data processing, management consulting and economic research
|SAKURA KCS Corporation                               |  |                                   | 50.2  |  |                               |  | 50.2  |               |  | System engineering and data processing                                          
|Financial Link Co., Ltd.                             |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Data processing service and consulting                                          
|SMBC Venture Capital Co., Ltd.                       |  |                                   | 40.0  |  |                               |  | 40.0  |               |  | Venture capital                                                                 
|SMBC Consulting Co., Ltd.                            |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Management consulting and information services                                  
|Japan Pension Navigator Co., Ltd.                    |  |                                   | 69.7  |  |                               |  | 69.7  |               |  | Operational management of defined contribution pension plans                    



|(1) | Percentages of proportion of ownership interest and proportion of voting rights have been truncated.
|--- | ----------------------------------------------------------------------------------------------------

|(2) | The SMFG Group has a 6.0% direct holding in THE MINATO BANK, LTD., and can control a further 40.4% of the voting rights held by SMBCs retirement benefit trust
under contractual agreements between SMBC and the retirement benefit trust.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Cedyna Financial Corporation merged with SAKURA CARD CO., LTD. on April 1, 2016.
|--- | --------------------------------------------------------------------------------



F-127



---

##### Table of Contents

Principal foreign subsidiaries



|                                                    |  |                         |  |                                   |       |  |                               |  |       |               |  |                   
|--------------------------------------------------- |  | ----------------------- |  | --------------------------------- | ----- |  | ----------------------------- |  | ----- | ------------- |  | ------------------
|Company Name                                        |  | Country ofIncorporation |  | Proportion ofOwnershipInterest(1) |       |  | Proportion ofVoting Rights(1) |  |       | Main Business
|                                                    |  |                         |  | (%)                               |       |  | (%)                           |  |       |              
|Sumitomo Mitsui Banking Corporation Europe Limited  |  | U.K.                    |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking
|Sumitomo Mitsui Banking Corporation (China) Limited |  | China                   |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking
|Manufacturers Bank                                  |  | U.S.A.                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking
|Sumitomo Mitsui Banking Corporation of Canada       |  | Canada                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking
|Banco Sumitomo Mitsui Brasileiro S.A.               |  | Brazil                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking
|JSC Sumitomo Mitsui Rus Bank                        |  | Russia                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking
|PT Bank Sumitomo Mitsui Indonesia                   |  | Indonesia               |  |                                   | 98.4  |  |                               |  | 98.4  |               |  | Commercial banking
|Sumitomo Mitsui Banking Corporation Malaysia Berhad |  | Malaysia                |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Commercial banking
|SMBC Leasing and Finance, Inc.                      |  | U.S.A.                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Leasing           
|SMBC Aviation Capital Limited                       |  | Ireland                 |  |                                   | 90.0  |  |                               |  | 90.0  |               |  | Leasing           
|SMBC Nikko Securities America, Inc.                 |  | U.S.A.                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Securities        
|SMBC Nikko Capital Markets Limited                  |  | U.K.                    |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Securities        
|SMBC Capital Markets, Inc.                          |  | U.S.A.                  |  |                                   | 100.0 |  |                               |  | 100.0 |               |  | Derivatives       



|(1) | Percentages of proportion of ownership interest and proportion of voting rights have been truncated.
|--- | ----------------------------------------------------------------------------------------------------

THE MINATO BANK, LTD. and SMBC Venture Capital Co., Ltd. are accounted for as subsidiaries, despite the SMFG Groups holdings of
less than 50% of the voting rights, because the SMFG Group is able to govern the financial and operating policies of these companies under a statute or an agreement, or by delegating the majority of the members of the board of directors.

The SMFG Group does not control some entities despite the fact that the SMFG Group holds more than 50% of their share capital, because
the SMFG Group has entered into agreements with other investors to share or give those investors the power to govern the entities financial and operating policies over these investees.

Some of the SMFG Groups subsidiaries may be subject to restrictions on the ability to transfer funds to SMFG in the form of cash
dividends or to repay loans or advances, which include capital adequacy requirements imposed by the governments and central banks, and the Companies Act restrictions relating to dividends. In addition, the SMFG Group pledges assets as collateral to
secure payables under repurchase agreements, securities lending transactions and securitizations, borrowings or for cash settlements, margins on derivative transactions and certain other purposes. The details of assets pledged are described in Note
38 Assets Pledged and Received as Collateral.



|48 | STRUCTURED ENTITIES
|-- | -------------------

A
structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity. It often has some or all of the following features or attributes:



| |  |  | restricted activities;
| | - |  | ----------------------



| |  |  | a narrow and well-defined objective;
| | - |  | ------------------------------------



| |  |  | insufficient equity to permit the structured entity to finance its activities without subordinated financial support; or
| | - |  | ------------------------------------------------------------------------------------------------------------------------



| |  |  | financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches).
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------



F-128



---

##### Table of Contents

During the normal course of business, the SMFG Group engages in numerous transactions
involving structured entities. These structured entities are primarily used to provide the SMFG Group and its clients with efficient access to funds or investment opportunities, mainly through securitizations, investment funds and structured
finance.

Consolidated Structured Entities

Structured entities are consolidated if they are controlled by the SMFG Group in accordance with the accounting policy as described in Note 2 Summary of Significant Accounting Policies.

The consolidated structured entities include asset backed commercial paper (ABCP) conduits which purchase
financial assets such as trade accounts receivable and lease receivables by issuing commercial paper to third-party investors. The SMFG Group has contractual agreements to provide liquidity and credit enhancement facilities which can be utilized by
those structured entities upon their request.

At March 31, 2016 and 2015, the consolidated ABCP conduits had total assets of
¥933,890 million and ¥910,023 million, respectively. The total notional amounts of the liquidity and credit enhancement facilities provided by the SMFG Group to the consolidated ABCP conduits at March 31, 2016 and 2015 were ¥1,165,463
million and ¥1,101,988 million, respectively, all of which were undrawn.

The SMFG Group did not provide any financial or
other support, without having a contractual obligation to do so, to consolidated structured entities during the fiscal years ended March 31, 2016 and 2015.

Unconsolidated Structured Entities

The following tables represent the
carrying amounts of the SMFG Groups interests in unconsolidated structured entities recognized in its consolidated statement of financial position by line item and the maximum exposure to loss from its interests at March 31, 2016 and 2015.



|                                                                              |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|----------------------------------------------------------------------------- |  | ----------------- | --------- |  | --------------- | - | --------- | ----------------- |  | - | --------- |  |  | ----- | ------- |  |  | - | --------- | 
|                                                                              |  | At March 31, 2016 |          
|                                                                              |  | Securitizations   |           |  | Investmentfunds |   |           | Structuredfinance |  |   | Others    |  |  | Total |        
|                                                                              |  | (In millions)     |          
|Interests in unconsolidated structured entities recognized in:                |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|Trading assets                                                                |  | ¥                 |          |  |                 | ¥ | 170,696   |                   |  | ¥ |          |  |  | ¥     |        |  |  | ¥ | 170,696   | 
|Financial assets at fair value through profit or loss                         |  |                   |          |  |                 |   |          |                   |  |   |          |  |  |       |        |  |  |   |          | 
|Investment securities                                                         |  |                   | 11,443    |  |                 |   | 906,367   |                   |  |   | 60,633    |  |  |       | 546     |  |  |   | 978,989   | 
|Loans and advances                                                            |  |                   | 1,609,435 |  |                 |   |          |                   |  |   | 4,601,526 |  |  |       | 533,445 |  |  |   | 6,744,406 | 
|                                                                              |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|Total                                                                         |  | ¥                 | 1,620,878 |  |                 | ¥ | 1,077,063 |                   |  | ¥ | 4,662,159 |  |  | ¥     | 533,991 |  |  | ¥ | 7,894,091 | 
|                                                                              |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|Maximum exposure to loss from interests in unconsolidated structured entities |  | ¥                 | 1,913,474 |  |                 | ¥ | 1,079,080 |                   |  | ¥ | 5,618,144 |  |  | ¥     | 712,415 |  |  | ¥ | 9,323,113 | 



F-129



---

##### Table of Contents

|                                                                              |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|----------------------------------------------------------------------------- |  | ----------------- | --------- |  | --------------- | - | --------- | ----------------- |  | - | --------- |  |  | ----- | ------- |  |  | - | --------- | 
|                                                                              |  | At March 31, 2015 |          
|                                                                              |  | Securitizations   |           |  | Investmentfunds |   |           | Structuredfinance |  |   | Others    |  |  | Total |        
|                                                                              |  | (In millions)     |          
|Interests in unconsolidated structured entities recognized in:                |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|Trading assets                                                                |  | ¥                 |          |  |                 | ¥ | 192,057   |                   |  | ¥ |          |  |  | ¥     |        |  |  | ¥ | 192,057   | 
|Financial assets at fair value through profit or loss                         |  |                   |          |  |                 |   |          |                   |  |   |          |  |  |       | 100,000 |  |  |   | 100,000   | 
|Investment securities                                                         |  |                   | 5,996     |  |                 |   | 1,457,674 |                   |  |   | 59,190    |  |  |       | 5,485   |  |  |   | 1,528,345 | 
|Loans and advances                                                            |  |                   | 1,351,933 |  |                 |   |          |                   |  |   | 4,078,942 |  |  |       | 367,706 |  |  |   | 5,798,581 | 
|                                                                              |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|Total                                                                         |  | ¥                 | 1,357,929 |  |                 | ¥ | 1,649,731 |                   |  | ¥ | 4,138,132 |  |  | ¥     | 473,191 |  |  | ¥ | 7,618,983 | 
|                                                                              |  |                   |           |  |                 |   |           |                   |  |   |           |  |  |       |         |  |  |   |           | 
|Maximum exposure to loss from interests in unconsolidated structured entities |  | ¥                 | 1,586,349 |  |                 | ¥ | 1,649,731 |                   |  | ¥ | 4,831,148 |  |  | ¥     | 604,315 |  |  | ¥ | 8,671,543 | 

An interest in a structured entity refers to contractual and non-contractual involvement that exposes the
SMFG Group to variability of returns from the performance of the structured entity. Such interests include the holding of equity or debt instruments as well as the provision of loans, loan commitments and guarantees. Interest rate and currency
derivatives that expose the SMFG Group mainly to market risk, or CDS that are designed to transfer risk from the SMFG Group to a structured entity are not regarded as an interest in a structured entity since they do not expose the SMFG Group to
variability of returns from the performance of the structured entity. These derivatives are therefore not included in the tables above.

The maximum exposure to loss from the SMFG Groups interests in unconsolidated structured entities represents the maximum amount of potential loss to which the SMFG Group is exposed through its
involvement with unconsolidated structured entities. It is determined by the SMFG Groups carrying amounts and the notional amounts of loan commitments and guarantees, without considering the probability of loss being incurred, or effects of
collateral or other credit protection.

The SMFG Group did not provide any financial or other support, without having a
contractual obligation to do so, to unconsolidated structured entities during the fiscal years ended March 31, 2016 and 2015.

Securitizations

Securitization entities are established to securitize third-parties assets which mainly consist of auto loan receivables, residential and commercial mortgage loans and trade accounts receivable.
These entities purchase those assets through loans or notes issued with multiple tranches. The SMFG Group provides loans and loan commitments to these entities or holds senior notes issued by them, in some cases with credit loss protection through
guarantees or other credit enhancements provided by the sellers.

Investment Funds

Investment funds are established for providing investment opportunities to investors by pooling money from them and investing mainly in
equity and debt instruments based on a predetermined investment policy. The SMFG Group has invested in a number of these funds.

Structured Finance

Project finance

In project finance, structured entities are established to
raise funds for projects such as the development of electric power plants and transportation infrastructure and the production of natural resources. The SMFG Group provides loans and loan commitments, which are secured by the cash flows generated by
the projects, to these entities as part of a syndication of lenders.



F-130



---

##### Table of Contents

Real estate finance

Real estate financing entities are established to raise funds in connection with the development and acquisition of real estate properties
such as office buildings and logistics facilities. The SMFG Group provides financing to these structured entities mainly in the form of senior loans and loan commitments or notes, which are secured by the entities assets.

Lease finance

Lease financing entities are established to purchase or build certain equipment such as a vessel or an aircraft which is subsequently leased to lessees to be used in their core business. The SMFG Group
provides loans to these entities, which are secured by lease receivables from the lessees and in some cases guaranteed by the equity holders.

Acquisition finance

In acquisition finance, structured entities are
established by either third-party companies or management of target companies to acquire the equity shares of the target companies. The purchase of the target companies shares is financed by debt provided mainly by financial institutions and
equity raised by the acquirer. The SMFG Group provides loans to these entities, which are secured by the cash flows from the target companies.

Others

The SMFG Group provides financing to other types of
structured entities such as third-party structured entities and repackaging vehicles to facilitate its clients funding requirements. The SMFG Group provides loans and loan commitments to these entities.

Sponsored Unconsolidated Structured Entities

In addition to the unconsolidated structured entities in which the SMFG Group has an interest, the SMFG Group also sponsors certain structured entities in which it has no interest. The SMFG Group is
deemed to be a sponsor of a structured entity when the SMFG Group takes a leading role in determining its purpose and design and has been providing operational support to ensure its continued operation.

The carrying amount of assets transferred to and income received from sponsored unconsolidated structured entities, where the SMFG Group
did not have an interest at the end of the reporting periods, were not significant for the fiscal years ended March 31, 2016 and 2015.



|49 | ACQUISITIONS
|-- | ------------

Fiscal Years Ended March
31, 2016

Retail banking business of Citibank Japan Ltd.

On November 1, 2015, SMBC Trust Bank, the SMFG Groups wholly owned subsidiary, acquired the retail banking business of Citibank
Japan Ltd. (Citibank Japan), a wholly owned subsidiary of Citigroup Inc. SMBC Trust Bank allocated its non-voting stocks to Citibank Japan as consideration, and SMBC, SMFGs wholly owned subsidiary, acquired them in cash. Through
this acquisition, SMBC Trust Bank is expanding its business model to offer additional products and services, including foreign currency investment products and global services. This acquisition is expected to enable the SMFG Group to expand its
customer base, enhance its foreign currency funding source and improve the service capability of the Group as a whole.



F-131



---

##### Table of Contents

The fair values of assets and liabilities of the retail banking business of Citibank Japan
at the date of acquisition and the consideration paid were as follows:



|                                                                                                                                 |  |                     |           | 
|-------------------------------------------------------------------------------------------------------------------------------- |  | ------------------- | --------- | 
|                                                                                                                                 |  | At November 1, 2015 |          
|                                                                                                                                 |  | (In millions)       |          
|Assets:                                                                                                                          |  |                     |           | 
|Cash and deposits with banks                                                                                                     |  | ¥                   | 2,296,107 | 
|All other assets                                                                                                                 |  |                     | 110,978   | 
|                                                                                                                                 |  |                     |           | 
|Total assets                                                                                                                     |  | ¥                   | 2,407,085 | 
|                                                                                                                                 |  |                     |           | 
|Liabilities:                                                                                                                     |  |                     |           | 
|Deposits                                                                                                                         |  | ¥                   | 2,361,908 | 
|All other liabilities                                                                                                            |  |                     | 8,620     | 
|                                                                                                                                 |  |                     |           | 
|Total liabilities                                                                                                                |  | ¥                   | 2,370,528 | 
|                                                                                                                                 |  |                     |           | 
|Net assets acquired                                                                                                              |  |                     | 36,557    | 
|Goodwill                                                                                                                         |  |                     | 8,443     | 
|                                                                                                                                 |  |                     |           | 
|Consideration                                                                                                                    |  | ¥                   | 45,000    | 
|                                                                                                                                 |  |                     |           | 
|Consideration:                                                                                                                   |  |                     |           | 
|Fair value of consideration transferred                                                                                          |  | ¥                   | 45,000    | 
|                                                                                                                                 |  |                     |           | 
|Total                                                                                                                            |  | ¥                   | 45,000    | 
|                                                                                                                                 |  |                     |           | 
|Acquisition related costs recognized as an expense in General and administrative expenses in the consolidated income
statement |  | ¥                   | 286       | 
|                                                                                                                                 |  |                     |           | 

The goodwill was attributable to the profitability of the acquired business and the synergies expected to
arise after the acquisition. The goodwill and other intangible assets of ¥40,683 million are deductible for Japan tax purposes.

The revenue and profit or loss since the acquisition date to March 31, 2016 and pro forma financial information relating to the retail banking business of Citibank Japan are immaterial to the consolidated
financial statements.

Cash consideration paid and cash acquired by obtaining control of the subsidiaries and businesses

The total amount of cash consideration paid and cash acquired by obtaining control of subsidiaries and businesses
during the fiscal year ended March 31, 2016 were as follows:



|                                                                                                                           |  |                                         |           |  
|-------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------- | --------- | -
|                                                                                                                           |  | For the fiscal year endedMarch 31, 2016 |          
|                                                                                                                           |  | (In millions)                           |          
|Cash consideration paid                                                                                                    |  | ¥                                       | (46,923   | )
|Cash and cash equivalents transferred as a result of the acquisitions                                                      |  |                                         | 2,296,517 |  
|                                                                                                                           |  |                                         |           |  
|Cash consideration paid, net of cash and cash equivalents acquired by obtaining control of the subsidiaries and
businesses |  | ¥                                       | 2,249,594 |  
|                                                                                                                           |  |                                         |           |  

The amounts of assets and liabilities other than cash or cash equivalents in these subsidiaries and
businesses were ¥175,263 million and ¥2,430,332 million, respectively.

Fiscal Year Ended March 31, 2015 and 2014

There were no material acquisitions that were accounted for as business combinations during the fiscal year ended March 31, 2015 and
2014.



F-132



---

##### Table of Contents

After the Fiscal Year Ended March 31, 2016

GE Japan GK

On April 1, 2016, SMFL acquired General Electric Company (GE) groups leasing business in Japan by acquiring a 100% equity interest in GE Japan GK (GE Japan). The acquired
leasing business is comprised mainly of equipment/asset leasing, small-ticket leasing, and automotive leasing. Through this acquisition, the SMFG Group aim to upgrade the marketing strategies and sales capabilities by leveraging GE Japans
know-how developed under GE, and offer a wide range of financial solutions by enhancing the combined client base of SMFL and GE Japan.

The consideration for this transaction consisted of a cash payment amounting to ¥181 billion.

Further information could not be disclosed as the initial accounting for the business combination is yet to be finalized due to proximity of the acquisition date to the date of authorization for issue of
the consolidated financial statements.



|50 | CURRENT AND NON-CURRENT DISTINCTION
|-- | -----------------------------------

The following tables present an analysis of financial assets and liabilities, excluding cash and deposits with banks, trading assets and liabilities, and derivative financial instruments, by amounts
recovered or settled, not more than twelve months or more than twelve months, at March 31, 2016 and 2015.



|                                                                         |  |                              |             |  |                        |   |            |       |  |   |             | 
|------------------------------------------------------------------------ |  | ---------------------------- | ----------- |  | ---------------------- | - | ---------- | ----- |  | - | ----------- | 
|                                                                         |  | At March 31, 2016            |            
|                                                                         |  | Amounts recovered or settled |             |  |                        |  
|                                                                         |  | Not more thantwelve months   |             |  | More thantwelve months |   |            | Total | 
|                                                                         |  | (In millions)                |            
|Assets:                                                                  |  |                              |             |  |                        |   |            |       |  |   |             | 
|Call loans and bills bought                                              |  | ¥                            | 1,235,296   |  |                        | ¥ | 56,070     |       |  | ¥ | 1,291,366   | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  |                              | 8,157,904   |  |                        |   | 78,612     |       |  |   | 8,236,516   | 
|Financial assets at fair value through profit or loss                    |  |                              |            |  |                        |   | 1,611,877  |       |  |   | 1,611,877   | 
|Investment securities:                                                   |  |                              |             |  |                        |   |            |       |  |   |             | 
|Held-to-maturity investments                                             |  |                              | 1,093,833   |  |                        |   | 1,173,709  |       |  |   | 2,267,542   | 
|Available-for-sale financial assets                                      |  |                              | 3,444,355   |  |                        |   | 14,153,450 |       |  |   | 17,597,805  | 
|Loans and advances                                                       |  |                              | 29,410,283  |  |                        |   | 59,452,088 |       |  |   | 88,862,371  | 
|Other financial assets                                                   |  |                              | 2,645,489   |  |                        |   | 118,826    |       |  |   | 2,764,315   | 
|Liabilities:                                                             |  |                              |             |  |                        |   |            |       |  |   |             | 
|Deposits                                                                 |  | ¥                            | 120,219,012 |  |                        | ¥ | 5,721,785  |       |  | ¥ | 125,940,797 | 
|Call money and bills sold                                                |  |                              | 1,219,197   |  |                        |   | 1,259      |       |  |   | 1,220,456   | 
|Repurchase agreements and cash collateral on securities lent             |  |                              | 6,839,474   |  |                        |   |           |       |  |   | 6,839,474   | 
|Borrowings                                                               |  |                              | 5,945,391   |  |                        |   | 3,968,738  |       |  |   | 9,914,129   | 
|Debt securities in issue                                                 |  |                              | 5,147,326   |  |                        |   | 5,682,286  |       |  |   | 10,829,612  | 
|Other financial liabilities                                              |  |                              | 5,841,129   |  |                        |   | 94,382     |       |  |   | 5,935,511   | 



F-133



---

##### Table of Contents

|                                                                         |  |                              |             |  |                        |   |            |       |  |   |             | 
|------------------------------------------------------------------------ |  | ---------------------------- | ----------- |  | ---------------------- | - | ---------- | ----- |  | - | ----------- | 
|                                                                         |  | At March 31, 2015            |            
|                                                                         |  | Amounts recovered or settled |             |  |                        |  
|                                                                         |  | Not more thantwelve months   |             |  | More thantwelve months |   |            | Total | 
|                                                                         |  | (In millions)                |            
|Assets:                                                                  |  |                              |             |  |                        |   |            |       |  |   |             | 
|Call loans and bills bought                                              |  | ¥                            | 1,272,267   |  |                        | ¥ | 54,698     |       |  | ¥ | 1,326,965   | 
|Reverse repurchase agreements and cash collateral on securities borrowed |  |                              | 7,096,618   |  |                        |   | 121,880    |       |  |   | 7,218,498   | 
|Financial assets at fair value through profit or loss                    |  |                              |            |  |                        |   | 1,785,684  |       |  |   | 1,785,684   | 
|Investment securities:                                                   |  |                              |             |  |                        |   |            |       |  |   |             | 
|Held-to-maturity investments                                             |  |                              | 1,393,712   |  |                        |   | 2,003,183  |       |  |   | 3,396,895   | 
|Available-for-sale financial assets                                      |  |                              | 3,759,843   |  |                        |   | 17,082,918 |       |  |   | 20,842,761  | 
|Loans and advances                                                       |  |                              | 29,400,474  |  |                        |   | 57,571,242 |       |  |   | 86,971,716  | 
|Other financial assets                                                   |  |                              | 2,434,897   |  |                        |   | 130,828    |       |  |   | 2,565,725   | 
|Liabilities:                                                             |  |                              |             |  |                        |   |            |       |  |   |             | 
|Deposits                                                                 |  | ¥                            | 110,352,284 |  |                        | ¥ | 5,481,696  |       |  | ¥ | 115,833,980 | 
|Call money and bills sold                                                |  |                              | 5,873,124   |  |                        |   |           |       |  |   | 5,873,124   | 
|Repurchase agreements and cash collateral on securities lent             |  |                              | 8,820,083   |  |                        |   |           |       |  |   | 8,820,083   | 
|Borrowings                                                               |  |                              | 7,377,283   |  |                        |   | 3,839,769  |       |  |   | 11,217,052  | 
|Debt securities in issue                                                 |  |                              | 5,837,235   |  |                        |   | 5,214,196  |       |  |   | 11,051,431  | 
|Other financial liabilities                                              |  |                              | 4,889,407   |  |                        |   | 130,598    |       |  |   | 5,020,005   | 



|51 | CONDENSED FINANCIAL INFORMATION OF REGISTRANT (SMFG)
|-- | ----------------------------------------------------

Condensed Statement of Financial Position



|                                                   |  |               |           |  |      |   |           | 
|-------------------------------------------------- |  | ------------- | --------- |  | ---- | - | --------- | 
|                                                   |  | At March 31,  |          
|                                                   |  | 2016          |           |  | 2015 |  
|                                                   |  | (In millions) |          
|Assets:                                            |  |               |           |  |      |   |           | 
|Deposits with SMBC                                 |  | ¥             | 502,450   |  |      | ¥ | 201,862   | 
|Investments in SMBC                                |  |               | 5,166,345 |  |      |   | 5,175,789 | 
|Loans to SMBC                                      |  |               | 1,406,565 |  |      |   | 376,263   | 
|Investments in other subsidiaries and associates   |  |               | 994,817   |  |      |   | 985,374   | 
|Other assets                                       |  |               | 12,104    |  |      |   | 7,418     | 
|Current tax assets                                 |  |               | 110,953   |  |      |   | 102,967   | 
|                                                   |  |               |           |  |      |   |           | 
|Total assets                                       |  | ¥             | 8,193,234 |  |      | ¥ | 6,849,673 | 
|                                                   |  |               |           |  |      |   |           | 
|Liabilities and equity:                            |  |               |           |  |      |   |           | 
|Short-term borrowings from SMBC                    |  | ¥             | 1,228,030 |  |      | ¥ | 1,228,030 | 
|Long-term borrowings                               |  |               | 49,000    |  |      |   | 31,000    | 
|Debt securities in issue due to other subsidiaries |  |               | 275,300   |  |      |   | 267,974   | 
|Debt securities in issue                           |  |               | 1,047,037 |  |      |   | 343,989   | 
|Other liabilities                                  |  |               | 10,804    |  |      |   | 9,223     | 
|                                                   |  |               |           |  |      |   |           | 
|Total liabilities                                  |  |               | 2,610,171 |  |      |   | 1,880,216 | 
|                                                   |  |               |           |  |      |   |           | 
|Shareholders equity                               |  |               | 5,285,632 |  |      |   | 4,969,457 | 
|Other equity instruments holders equity           |  |               | 297,431   |  |      |   |          | 
|                                                   |  |               |           |  |      |   |           | 
|Total equity                                       |  |               | 5,583,063 |  |      |   | 4,969,457 | 
|                                                   |  |               |           |  |      |   |           | 
|Total equity and liabilities                       |  | ¥             | 8,193,234 |  |      | ¥ | 6,849,673 | 
|                                                   |  |               |           |  |      |   |           | 



F-134



---

##### Table of Contents

Condensed Income Statement



|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|------------------------------------------------------------------------ |  | ----------------------------------- | ---------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                         |  | For the fiscal year ended March 31, |           
|                                                                         |  | 2016                                |            |   | 2015 |   |          | 2014 | 
|                                                                         |  | (In millions)                       |           
|Income:                                                                  |  |                                     |            |   |      |   |          |      |  |   |          |  
|Interest income from SMBC                                                |  | ¥                                   | 18,313     |   |      | ¥ | 9,641    |      |  | ¥ | 46       |  
|Dividends from SMBC                                                      |  |                                     | 522,636    |   |      |   | 485,449  |      |  |   | 190,397  |  
|Dividends from other subsidiaries and associates                         |  |                                     | 20,508     |   |      |   | 18,649   |      |  |   | 16,436   |  
|Fees and commission income from subsidiaries                             |  |                                     | 16,622     |   |      |   | 13,800   |      |  |   | 13,476   |  
|Other income                                                             |  |                                     | 234        |   |      |   | 98       |      |  |   | 96       |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Total income                                                             |  |                                     | 578,313    |   |      |   | 527,637  |      |  |   | 220,451  |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Expense:                                                                 |  |                                     |            |   |      |   |          |      |  |   |          |  
|Interest expense to SMBC                                                 |  |                                     | 5,753      |   |      |   | 5,895    |      |  |   | 6,171    |  
|Interest expense to other subsidiaries                                   |  |                                     | 12,780     |   |      |   | 16,170   |      |  |   | 16,468   |  
|Interest expense                                                         |  |                                     | 12,814     |   |      |   | 8,886    |      |  |   |         |  
|Operating and other expense                                              |  |                                     | 9,868      |   |      |   | 10,712   |      |  |   | 8,790    |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Total expense                                                            |  |                                     | 41,215     |   |      |   | 41,663   |      |  |   | 31,429   |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Profit before tax                                                        |  |                                     | 537,098    |   |      |   | 485,974  |      |  |   | 189,022  |  
|Income tax expense                                                       |  |                                     | 4          |   |      |   | 4        |      |  |   | 4        |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Net profit                                                               |  | ¥                                   | 537,094    |   |      | ¥ | 485,970  |      |  | ¥ | 189,018  |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Profit attributable to:                                                  |  |                                     |            |   |      |   |          |      |  |   |          |  
|Shareholders                                                             |  |                                     | 534,321    |   |      |   | 485,970  |      |  |   | 189,018  |  
|Other equity instruments holders                                         |  |                                     | 2,773      |   |      |   |         |      |  |   |         |  
|Condensed Statement of Cash
Flows                                        |  |                                     |            |   |     
|                                                                         |  | For the fiscal year ended March 31, |           
|                                                                         |  | 2016                                |            |   | 2015 |   |          | 2014 | 
|                                                                         |  | (In millions)                       |           
|Operating Activities:                                                    |  |                                     |            |   |      |   |          |      |  |   |          |  
|Profit before tax                                                        |  | ¥                                   | 537,098    |   |      | ¥ | 485,974  |      |  | ¥ | 189,022  |  
|Income taxes paidnet                                                    |  |                                     | (7,980     | ) |      |   | (60,722  | )    |  |   | (9,146   | )
|Other operating activitiesnet                                           |  |                                     | (3,019     | ) |      |   | (641     | )    |  |   | 286      |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Net cash and cash equivalents provided by operating activities           |  |                                     | 526,099    |   |      |   | 424,611  |      |  |   | 180,162  |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Investing Activities:                                                    |  |                                     |            |   |      |   |          |      |  |   |          |  
|Loans provided to SMBC                                                   |  |                                     | (1,073,640 | ) |      |   | (346,268 | )    |  |   |         |  
|Other investing activitiesnet                                           |  |                                     | (76        | ) |      |   | (35      | )    |  |   | (191     | )
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Net cash and cash equivalents used in investing activities               |  |                                     | (1,073,716 | ) |      |   | (346,303 | )    |  |   | (191     | )
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Financing Activities:                                                    |  |                                     |            |   |      |   |          |      |  |   |          |  
|Proceeds from issuance of long-term borrowings                           |  |                                     | 18,000     |   |      |   | 31,000   |      |  |   |         |  
|Proceeds from issuance of debt securities                                |  |                                     | 754,274    |   |      |   | 315,268  |      |  |   |         |  
|Redemption of debt securities                                            |  |                                     |           |   |      |   | (126,200 | )    |  |   |         |  
|Proceeds from issuance of other equity instruments                       |  |                                     | 297,431    |   |      |   |         |      |  |   |         |  
|Dividends paid to shareholders                                           |  |                                     | (218,589   | ) |      |   | (176,271 | )    |  |   | (176,281 | )
|Coupons paid to other equity instruments holders                         |  |                                     | (2,773     | ) |      |   |         |      |  |   |         |  
|Purchases of treasury stock and proceeds from sale of treasury stocknet |  |                                     | (138       | ) |      |   | (144     | )    |  |   | (481     | )
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Net cash and cash equivalents provided by (used in) financing activities |  |                                     | 848,205    |   |      |   | 43,653   |      |  |   | (176,762 | )
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Net increase of cash and cash equivalents                                |  |                                     | 300,588    |   |      |   | 121,961  |      |  |   | 3,209    |  
|Cash and cash equivalents at beginning of period                         |  |                                     | 201,862    |   |      |   | 79,901   |      |  |   | 76,692   |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  
|Cash and cash equivalents at end of period                               |  | ¥                                   | 502,450    |   |      | ¥ | 201,862  |      |  | ¥ | 79,901   |  
|                                                                         |  |                                     |            |   |      |   |          |      |  |   |          |  



F-135



---

##### Table of Contents

Investments in subsidiaries and associates

Investments in subsidiaries and associates are stated at cost. SMFG recognizes dividend income from subsidiaries and associates when its
right to receive payment is established.

Investments in other subsidiaries and associates include equity investments in SMFL,
SMBC Friend Securities, SMFG Card & Credit, Inc., SMBC Consumer Finance and others at March 31, 2016 and 2015. These companies are incorporated in Japan, and the proportion of ownership interest of SMFG in these companies was the same as
described in Note 11 Investments in Associates and Joint Ventures, and Note 47 Principal Subsidiaries.

Long-term obligations

SMFG had perpetual subordinated bonds of ¥267 billion and ¥267 billion outstanding to its subsidiary, SMFG Preferred Capital JPY 3 Limited, at March 31, 2016 and 2015, respectively. The interest
rates of these bonds are fixed until January 2020, which range from 4.0% to 4.5% per annum, and will be floating thereafter. SMFG Preferred Capital JPY 3 Limited issued preferred securities to purchase these bonds.

SMFG had subordinated long-term borrowings amounting to ¥49 billion and ¥31 billion at March 31, 2016 and 2015, respectively.
SMFG also had subordinated bonds amounting to ¥607 billion and ¥345 billion, including ¥1 billion and ¥1 billion outstanding to its subsidiary, at March 31, 2016 and 2015, respectively. In addition, during the fiscal year ended March
31, 2016, SMFG issued senior bonds amounting to ¥449 billion, including ¥8 billion outstanding to its subsidiary. For additional information, refer to Note 18 Borrowings and Note 19 Debt Securities in Issue.

Guarantees

SMFG provided guarantee of ¥224 billion and ¥259 billion at March 31, 2016 and 2015, respectively, to the Deposit Protection Fund of the Association of German Banks with regard to the deposits of
the SMBC Dusseldorf branch.



F-136



---

##### Table of Contents

EXHIBIT INDEX



|               |  |                                                                                                                                                                              
|-------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit number |  | Description of Exhibit                                                                                                                                                       
|Exhibit 1.1    |  | Articles of Incorporation of Sumitomo Mitsui Financial Group, Inc., as amended on June 29, 2016 (English translation)                                                        
|               | 
|Exhibit 1.2    |  | Regulations of Board of Directors of Sumitomo Mitsui Financial Group, Inc., as amended on October 1, 2015 (English translation)                                              
|               | 
|Exhibit 1.3    |  | Share Handling Regulations of Sumitomo Mitsui Financial Group, Inc., as amended on April 1, 2012 (English translation)*                                                      
|               | 
|Exhibit 2.1    |  | Form of Deposit Agreement among the registrant, Citibank, N.A., as Depositary, and all owners and holders from time to time of American Depositary Shares issued
thereunder**
|               | 
|Exhibit 8      |  | List of subsidiaries of Sumitomo Mitsui Financial Group, Inc., at March 31, 2016                                                                                             
|               | 
|Exhibit 11     |  | Code of Ethics of Sumitomo Mitsui Financial Group, Inc.***                                                                                                                   
|               | 
|Exhibit 12.1   |  | CEO Certification Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))                                                                                                          
|               | 
|Exhibit 12.2   |  | CFO Certification Required by Rule 13a-14(a) (17 CFR 240.13a-14(a))                                                                                                          
|               | 
|Exhibit 13.1   |  | Certification Required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)                        
|               | 
|Exhibit 13.2   |  | Certification Required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)                        
|               | 
|Exhibit 15.1   |  | Consent of Independent Registered Public Accounting Firm                                                                                                                     



|* | Incorporated by reference to our annual report on Form 20-F (File No. 001-34919) filed on July 23, 2012.
|- | --------------------------------------------------------------------------------------------------------

|** | Incorporated by reference to our registration statement on Form 20-F (File No. 001-34919) filed on October 20, 2010.
|-- | --------------------------------------------------------------------------------------------------------------------

|*** | Incorporated by reference to our annual report on Form 20-F (File No. 001-34919) filed on July 29, 2011.
|--- | --------------------------------------------------------------------------------------------------------