Company Reports

Sumitomo Mitsui Trust Group's net income for the first quarter of fiscal 2026 (ending March 2027) rose 57% year on year. Growth was driven by higher net fee income, stronger interest-related earnings, and trading revenue, while net gains on share sales tripled to JPY 61 billion.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like JPMorgan Chase, Sumitomo Mitsui Trust Group's main competitors are the trust bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like J.P. Morgan, Sumitomo Mitsui Trust Group's main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

SMTG's fiscal 2025 net profit grew 23% year on year to JPY 318 billion, helped by improved net interest margins and a jump in share sale gains to JPY 165 billion. The group guides for another year of solid 23%-plus growth in net profit to JPY 390 billion in fiscal 2026.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like J.P. Morgan, Sumitomo Mitsui Trust Group's main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

SMTG's cumulative nine-month net profit is up 18% year on year to JPY 267 billion. There is no change to management's guidance for full-year fiscal 2025 (ending March 2026) net profit to be JPY 295 billion.

SMTG's interim net profit is up 29% year on year to JPY 171.3 billion on the back of lower credit costs while share sales gains are stable. Management is raising fiscal March 2026 net profit guidance by 5% to JPY 295 billion and annual dividend per share to JPY 170 from JPY 160.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like J.P. Morgan, Sumitomo Mitsui Trust Group's main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

Four Japanese banks—Mizuho, Resona, Sumitomo Mitsui Financial Group, and Sumitomo Mitsui Trust Group—announced results for the first quarter of their fiscal years ended March 2026. Japan’s largest bank, Mitsubishi UFJ Financial Group, will report on Aug. 4.

Sumitomo Mitsui Trust Group, or SMTG, will retain its 34.2% stake in SBI Sumishin Net Bank, or SSNB, as NTT DoCoMo acquires the remaining 65.8% from SBI Holdings and public shareholders through a tender offer as part of a broader capital and business alliance between NTT and SBI Holdings.

Sumitomo Mitsui Trust Group reported net income of JPY 258 billion for the fiscal year ended March 2025, and forecasts JPY 280 billion for the current year.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like J.P. Morgan, Sumitomo Mitsui Trust Group's main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like J.P. Morgan, Sumitomo Mitsui Trust Group's main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

We adjust our Morningstar Uncertainty Ratings for 14 of the 16 Asia, excluding China, stocks we cover after US President Donald Trump announced much more severe tariffs on imports than we or the market were expecting, raising uncertainty over future economic conditions across Asia.

Five major Japanese banks reported aggregate earnings of JPY 4.14 trillion for the nine months from April to December 2024, reaching over 99% of their full-year guidance with three months remaining.

The Bank of Japan raised its policy rate to 0.50% from 0.25%, marking the highest level since 2008, as the country’s persistent deflation shifts toward moderate inflation.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like J.P. Morgan, Sumitomo Mitsui Trust Group's main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

Sumitomo Mitsui Trust Group, or SMTG, reported interim earnings of JPY 133 billion (55% of its guidance of JPY 240 billion for the year ending March 2025) and announced a JPY 30 billion buyback, around 1.2% of shares outstanding at current prices.

Like State Street and Bank of New York Mellon in the US, which compete with custodian businesses inside larger US banks like J.P. Morgan, Sumitomo Mitsui Trust Group's main competitors are the trust-bank units of Japanese megabank groups Mitsubishi UFJ and Mizuho. Given its shared connections to the Sumitomo and Mitsui keiretsu corporate networks, SMTG's business portfolio would be a good match for Sumitomo Mitsui Financial Group, but SMTG and SMFG do not have any capital connection despite the common name.

We transfer five Japanese banks to a new coverage analyst with minor tweaks to our earnings forecasts that do not change our fair value estimates for the Tokyo-listed shares. Our fair value estimates for Mitsubishi UFJ Financial Group's, or MUFG, and Mizuho Financial Group's ADRs rise by 9% each to $12.25 and $4.61, respectively, due to 9% appreciation in the Japanese yen against the US dollar.