Strong business position backed by a leading market position in Japan Stable funding and strong liquidity backed by a domestic retail deposit base High likelihood of extraordinary government support if needed Continued decline in net interest margins on domestic loans because of a tough competitive environment A growing need for foreign currency-denominated funds because of rising overseas loan assets while foreign currency funding is weaker than yen funding S&P Global Ratings' outlooks on Japan-based megabank Sumitomo Mitsui Financial Group Inc. (SMFG), its lead bank, Sumitomo Mitsui Banking Corp. (SMBC), and the group's core banking subsidiaries, are positive. The outlooks reflect our view that we could raise our issuer credit ratings on SMFG, the nonoperating financial holding company of SMBC Group,
