Sumitomo Mitsui Financial Group Inc. said Friday it has cut its group earnings forecast for fiscal 2002 due to much larger losses in its securities holdings and bad loans.
In its revised consolidated earnings forecast for the fiscal year that ended Monday, the holding firm of Sumitomo Mitsui Banking Corp. said it now expects a net loss of 470 billion yen, marking a sharp reversal from a profit of 30 billion yen estimated in November.
The estimate for full-year dividend payments has also been cut to 3,000 yen per share from 4,000 yen, it said.
Sumitomo Mitsui said it will book 1.07 trillion yen in loan-loss charges for the just-ended year, up sharply from the previously estimated 700 billion yen.
The financial group also said it plans to take 700 billion yen in charges against valuation losses on securities holdings by Sumitomo Mitsui Banking, which grew out of its merger with subsidiary Wakashio Bank in March.
The holding firm said it will also book about 500 billion yen more in equity-related losses.
Its consolidated capital adequacy ratio was estimated at 10 percent as of Monday, well above the 8 percent threshold required for banks operating globally.
Sumitomo Mitsui also said it expects a pretax loss of 530 billion yen for fiscal 2002 against the previously estimated profit of 200 billion yen, with the forecast for revenues left unchanged at 3.4 trillion yen.