SMFG second-quarter profit falls 10%, raises annual earnings forecast

TOKYO, Nov 13 : Sumitomo Mitsui Financial Group said on Friday its second-quarter net profit fell 10 per cent from a year earlier, though it boosted its annual earnings forecast as corporate lending demand from local firms remained strong and higher domestic interest rates raised lending margins.

Japan's second-largest banking group generated a net profit of 501.8 billion yen ($3.14 billion) in the July-to-September period, down from 556.6 billion yen a year earlier.

• SMFG raised its annual net profit forecast to 1.9 trillion yen from 1.7 trillion yen

• The banking group also increased its share buyback programme by 220 billion yen, bringing the total shares to be bought up to 400 billion yen for the financial year that ends in March 2027

• Its net income for the quarter fell from a year earlier, when it registered a gain of 94 billion yen on the sale of its stake in India's Kotak Mahindra Bank.