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 diversified financial services, including securities, credit card services, leasing, and consumer finance. SMFG's asset quality is adequate. Its ratio of consolidated problem loans, net of loan loss reserves, to total loans was 0.31% at the end of fiscal 2006 (ended March 31, 2007), maintaining a level close to the average for major Japanese banks. Credit costs are also at favorable levels, at around 13%
