Japan's SMFG expects significant net profit growth due to various factors, positive.

From Investing.com: 2024-12-27 04:10:45

Sumitomo Mitsui Financial Group (NYSE:) CEO predicts over 1.2 trillion yen net profit next year, surpassing this year’s record target. Higher interest rates in Japan and cross-shareholdings sale boosted current year results. CEO Nakashima expects continued growth from expanding Japanese corporate clients, M&A, and capital investments. Online banking app Olive exceeds expectations.

At second-quarter earnings, SMFG reported a 196 billion yen gain from equity holdings sale, mostly cross-shareholdings. Nakashima warns against relying on this source of profit, as they will disappear in five years. The group plans to seek new opportunities in the next mid-term plan starting in April 2025 to ensure continuous profit growth.

SMFG Chief Executive Nakashima emphasizes the need for continuous profit growth beyond current sources like cross-shareholdings sale. The group’s online banking app Olive is on track to make a profit ahead of schedule this financial year. Nakashima sees domestic business opportunities increasing and expects profit growth to continue across all business segments.

In an interview, SMFG CEO Toru Nakashima expresses confidence in exceeding 1.2 trillion yen net profit next year. The group’s forecast is higher than the previous record target for this year. Nakashima credits the growth to diversifying income sources abroad and normalizing interest rates in Japan.



Read more at Investing.com: Japan’s SMFG expects more than $7.65 billion net profit in FY 2025 By Reuters