Strong business position backed by a leading market position in Japan Strong liquidity and stable funding backed by a large retail deposit base High likelihood of extraordinary government support if needed Continued decline in net interest margins on domestic loans, particularly those to small and midsize enterprises (SMEs) Weak retail deposit base to cover funding needs for expanding overseas assets S&P Global Ratings' outlooks on Sumitomo Mitsui Financial Group Inc. (SMFG) and the group's core banking subsidiaries are stable. The outlooks reflect our view that SMFG's creditworthiness will likely be stable in the next two years or so. In our view, the group's increasing exposure to countries we deem as having higher economic risk than Japan is likely to offset
