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Earnings

Japan bank SMFG's annual profit misses view, flags virus costs in current year

FILE PHOTO: A man walks past a sign board of Sumitomo Mitsui Banking Corporation, part of Sumitomo Mitsui Financial Group Inc (SMFG) outside its branch in Tokyo, Japan, January 27, 2017. REUTERS/Toru Hanai

TOKYO (Reuters) - Sumitomo Mitsui Financial Group 8316.T, Japan's second largest lender by assets, reported on Friday a smaller than expected full-year net profit and flagged 450 billion yen ($4.20 billion) of credit-related costs this year amid the coronavirus outbreak.

SMFG’s annual net profit for the year ended in March came in at 703.9 billion yen, compared with an average estimate of 721.5 billion yen from 11 analysts polled by Refinitiv.

Still, it is the first time since SMFG was founded in 2002 that it has overtaken its two big rivals, MUFG 8306.T and Mizuho 8411.T, in annual net profit.

SMFG said in a financial statement it clocked a fourth-quarter net profit of 93.1 billion yen and forecast a 400 billion yen profit for the current business year.

Reporting by Takashi Umekawa; Editing by Muralikumar Anantharaman

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