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Sumitomo Mitsui Financial Group ROA %

: 0.13% (As of Mar. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sumitomo Mitsui Financial Group's annualized Net Income for the quarter that ended in Mar. 2022 was $2,761 Mil. Sumitomo Mitsui Financial Group's average Total Assets over the quarter that ended in Mar. 2022 was $2,187,599 Mil. Therefore, Sumitomo Mitsui Financial Group's annualized ROA % for the quarter that ended in Mar. 2022 was 0.13%.

The historical rank and industry rank for Sumitomo Mitsui Financial Group's ROA % or its related term are showing as below:

SMFG' s ROA % Range Over the Past 10 Years
Min: 0.22   Med: 0.37   Max: 0.54
Current: 0.29

During the past 13 years, Sumitomo Mitsui Financial Group's highest ROA % was 0.54%. The lowest was 0.22%. And the median was 0.37%.

SMFG's ROA % is ranked worse than
86.45% of 1476 companies
in the Banks industry
Industry Median: 0.96 vs SMFG: 0.29

Sumitomo Mitsui Financial Group ROA % Historical Data

The historical data trend for Sumitomo Mitsui Financial Group's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sumitomo Mitsui Financial Group Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.38 0.35 0.34 0.22 0.27

Sumitomo Mitsui Financial Group Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.13 0.33 0.28 0.42 0.13

Competitive Comparison

For the Banks - Diversified subindustry, Sumitomo Mitsui Financial Group's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Sumitomo Mitsui Financial Group ROA % Distribution

For the Banks industry and Financial Services sector, Sumitomo Mitsui Financial Group's ROA % distribution charts can be found below:

* The bar in red indicates where Sumitomo Mitsui Financial Group's ROA % falls into.



Sumitomo Mitsui Financial Group ROA % Calculation

Sumitomo Mitsui Financial Group's annualized ROA % for the fiscal year that ended in Mar. 2022 is calculated as:

ROA %=Net Income (A: Mar. 2022 )/( (Total Assets (A: Mar. 2021 )+Total Assets (A: Mar. 2022 ))/ count )
=5959.2384383533/( (2231704.8439224+2173303.0493163)/ 2 )
=5959.2384383533/2202503.9466193
=0.27 %

Sumitomo Mitsui Financial Group's annualized ROA % for the quarter that ended in Mar. 2022 is calculated as:

ROA %=Net Income (Q: Mar. 2022 )/( (Total Assets (Q: Dec. 2021 )+Total Assets (Q: Mar. 2022 ))/ count )
=2760.5935026405/( (2201895.6119013+2173303.0493163)/ 2 )
=2760.5935026405/2187599.3306088
=0.13 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2022) net income data. ROA % is displayed in the 30-year financial page.


Sumitomo Mitsui Financial Group  (NYSE:SMFG) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Mar. 2022 )
=Net Income/Total Assets
=2760.5935026405/2187599.3306088
=(Net Income / Revenue)*(Revenue / Total Assets)
=(2760.5935026405 / 31785.618507405)*(31785.618507405 / 2187599.3306088)
=Net Margin %*Asset Turnover
=8.69 %*0.0145
=0.13 %

Note: The Net Income data used here is four times the quarterly (Mar. 2022) net income data. The Revenue data used here is four times the quarterly (Mar. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Sumitomo Mitsui Financial Group ROA % Related Terms

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Sumitomo Mitsui Financial Group Business Description

Sumitomo Mitsui Financial Group logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6029
Address
1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo, JPN, 100-0005
Sumitomo Mitsui Financial Group is roughly tied with Mizuho Financial Group for the status of Japan's second- largest bank after Mitsubishi UFJ Financial Group. As of March 2021, its market share of domestic loans was 7.0%, compared with 8.5% for MUFG. It has a larger consumer finance business than the other two megabanks, owning 100% of the Promise business and SMBC Card. It also controls one of Japan's largest leasing companies and SMBC Aviation Capital, one of the top five aircraft lessors globally. In securities, its SMBC Nikko unit is Japan's third- largest retail broker, although SMFG has lagged somewhat in institutional securities business and asset management, areas that it is working on strengthening.

Sumitomo Mitsui Financial Group Headlines

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