Sumitomo Mitsui Financial Group, Inc.

Sumitomo Mitsui Financial Group, Inc. announced the establishment of a new Group Vision and a three-year Medium-Term Management Plan beginning in FY2026. The new Vision, 'Globally connected. Rooted in Japan. Your most trusted partner,' replaces the previous vision set in FY2020 and aims to position the Group as a leader in Japan with a growing global presence. The strategic direction emphasizes supporting cross-border business activities, strengthening the home market foundation, and delivering value beyond traditional finance.

The accompanying Medium-Term Management Plan focuses on 'aiming higher through bold transformation.' Management has set a medium-to-long-term profitability target of ROTE around 15%, aligning with major U.S. and European financial institutions. To achieve this, the Group plans a fundamental transformation of its business portfolio based on three principles: Optimize, Capitalize, and Build Next Core. Strategic priorities include expanding efficient, low capital-intensive businesses such as asset management and transaction banking, while enhancing overseas profitability through strengthened S&T business and disciplined realization of returns in Asia.

A significant capital commitment of JPY 1 trillion in IT investment over the next three years underscores the priority placed on IT Transformation. This investment will fund a migration to cloud-based architecture, enhanced development capabilities, and comprehensive AI adoption. The Group aims to transform into an organization that fully leverages rapidly evolving technologies, including generative AI. Detailed financial targets and business strategies under the new Plan are scheduled to be announced in May.