KBRA Affirms Ratings for Sumitomo Mitsui Financial Group, Inc.

16 Oct 2026   |   New York

Contacts

KBRA affirms the senior unsecured debt rating of A and the short-term debt rating of K1 for Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG)("the group"), an international financial services group. KBRA also affirms the deposit and senior unsecured debt ratings of A+ and the short-term deposit and debt ratings of K1 for Sumitomo Mitsui Banking Corporation. The Outlook for all long-term ratings is Stable. The ratings, used by KBRA’s Financial Institutions and CMBS teams, were not solicited by SMFG, and SMFG did not participate in the rating process.

This credit rating is an unsolicited credit rating.
With Rated Entity or Related Third-Party ParticipationNo
With Access to Internal DocumentsNo
With Access to ManagementNo

The ratings are based on SMFG’s diversified business model, with a strong market position in Japan, supported by sound asset quality, solid capital levels, a comfortable liquidity profile, and improving profitability. SMFG’s diversified business model and fee-based businesses support its earnings and ability to navigate challenging global conditions. Net interest margin improved year-over-year, as domestic interest rates normalized, while fee income growth and continued cost discipline provide additional earnings support. Profitability nevertheless remains modest relative to international peers, reflecting the structure and competitive nature of the Japanese banking industry, with geopolitical uncertainty, potential credit costs, and increasing competition for deposits remaining headwinds. SMFG has a solid funding profile, with a large base of stable domestic deposits. However, the group remains somewhat reliant on wholesale funding in foreign currencies to support its overseas operations. Despite an uncertain operating environment, including the lingering impact of geopolitical tensions, global inflation, and domestic consumption pressures, KBRA expects SMFG’s asset quality to remain resilient supported by diversified portfolios and conservative underwriting standards. SMFG’s capital position is solid and reflective of its risk profile. In addition to the group’s fundamental credit strengths, the ratings also reflect SMFG’s strong market position in Japan and the high likelihood of government support in the event of need.

To access ratings and relevant documents, click here.

Click here to view the report.

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Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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