By Yuma Ikeshita / Yomiuri Shimbun Staff Writer
Sumitomo Mitsui Financial Group Inc. $(SMFG)$ may achieve its target of 2 trillion yen in net profit within the three-year period starting with fiscal 2026, earlier than previously expected, President and Group CEO Toru Nakashima said during an interview with The Yomiuri Shimbun. The company had originally set the target to be reached around 2030.
"A possibility has emerged that we could achieve the target within the three-year period from fiscal 2026 to fiscal 2028," Nakashima said confidently.
He also revealed plans to invest about 1 trillion yen in the IT sector over the same period, marking the largest such investment by a Japanese financial group to date.
In November, SMFG revised its expected net profit in fiscal 2025 upward from 1.3 trillion yen in the May forecast to 1.5 trillion yen. Factors contributing to the possibility of achieving the 2 trillion yen target ahead of schedule include the expansion of its transactions with corporate customers accompanying Japan's economic growth, as well as rising interest rates and the growth of overseas businesses, Nakashima said. Among other Japanese banks, Mitsubishi UFJ Financial Group Inc. expects to see its net profit surpassing 2 trillion yen in fiscal 2025.
In financial transactions with large corporations, which are a priority area for SMFG, "the group has strengthened its system for group companies to collaboratively make comprehensive proposals, and this is beginning to yield results," Nakashima said.
Additionally, in partnership with Jefferies Financial Group Inc., in which SMFG increased its stake in October, it will provide integrated services such as banking, securities and trust services for clients as desired.
Regarding IT investment, Nakashima pointed out, "We have entered an era where IT development capabilities directly impact the competitiveness of financial groups."
SMFG will proceed with updating its core systems and introducing AI to enable the company to "accelerate product development and service improvement, and to enhance customer satisfaction," he said.
The group also plans to build AI functions into its personal financial service, Olive. Accounts with that service are expected to number more than 7 million within this year.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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December 18, 2025 04:44 ET (09:44 GMT)
Copyright (c) 2025 The Yomiuri Shimbun
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