Strong business franchise in domestic corporate and retail banking markets Slightly above-average profitability and operating compared to other Japanese major banks Appropriate risk management High probability of receiving support from the Japanese government, if necessary, given the bank's important role in the domestic financial system Weak capitalization by international comparison, owing to a high dependence on preferred stock, preferred securities, and deferred tax assets Sumitomo Mitsui Financial Group Inc. (SMFG) is one of the three mega bank groups in Japan, with consolidated total assets amounting to ¥104 trillion as of June 2007. SMFG has a broad customer base, including companies in the Mitsui and Sumitomo corporate groups. While banking operations account for the majority of SMFG's revenue, the group offers
