SMFG targets 15% ROTE with new medium-term plan and vision

It named IT transformation a major management priority.

Sumitomo Mitsui Financial Group (SMFG) has unveiled a new vision and a new medium-term management plan beginning FY2026, targeting a return of tangible equity (ROTE) of around 15%

Its ROTE target is at a level comparable to that of major US and European financial institutions, it said.

Its three-year medium-term management plan involves making IT transformation a major management priority, improving its capital efficiency, and transforming its business portfolio.

“Through expanded IT investment and enhanced development capabilities, we will transform ourselves into an organization that fully leverages rapidly evolving technologies, including generative AI,” SMFG said.

Its new vision is “Globally connected. Rooted in Japan. Your most trusted partner.”

SMFG believes that it has entered a new stage of growth, following from its FY2023 medium-term management plan and its FY2020 vision.

“During this period, our core businesses delivered strong growth, driving a significant increase in earnings, supported by competitive strengths such as differentiation through our digital platforms and the offering of new services in a broad range of areas beyond traditional financial services,” SMFG said in a news release on 1 April 2026.

SMFG said that it has also made progress in strengthening its corporate infrastructure and creating social value during the period.

Other plans include expanding its customer base in Japan by leveraging its digital platforms and executing a group-wide integrated client coverage.

SMFG also plans to boost profitability in its overseas businesses by expanding presence in its capital markets. Measures include strengthening its sales & trading (S&T) business, realizing returns on existing Asia investments, and replacement of assets in existing lending business.