Management StrategyJAPANESE

Medium- to Long-Term Vision

  • ・The Sumitomo Mitsui Trust Group (the “SuMi TRUST Group”), as a financial group specialized in trust banking, aims for sustainable and stable growth immune to economic and market volatilities in order to meet client and social needs, which change over time and in evolving environments.
  • ・We will further enhance our comprehensive capabilities merging trust and banking functions and our expertise in trust businesses, which are the source of our added value mobilizing various trust functions within the Group, to elevate our capability to propose “Total Solutions”.
  • ・Taking advantage of the changes in the current business environment as an opportunity for further progress, we are determined to accomplish business model transformation and establish a solid position as the “Best Partner” for clients, to pursue evolution of “The Trust Bank” as our vision.
Our Vision and Initiatives
Pursuing growth by strengthening our edge as a financial group specialized in trust banking
  • ・Enhance our “expertise” in various trust functions within the Group and our comprehensive capabilities, which create our added value, mobilizing expertise functions
  • ・Create differentiation by providing prompt “total solutions” for the needs of individual clients at various life stages and for the business challenges of corporate clients
  • ・Ensure sophistication of products and services as well as consultation for asset formation, asset management and asset inheritance as a leading group in asset management and administration business
  • ・Expand alliances, with various financial institutions leveraging our neutral position to provide a wider range of products and services to a broader client base
Fundamental strengthening of our cost competitiveness
  • ・Pursue economies of scale through alliance strategies, including asset administration
  • ・Improve productivity via IT utilization, including FinTech
  • ・Pursue operational efficiency of the entire Group
Capital policy that conforms to our business model
  • ・Strengthen capital utilization for M&A, including asset management and administration business
  • ・Contract regulatory required capital for loan/investment businesses, including strategic shareholdings, based on the direction of financial regulation
  • ・Stay cognizant of the best balance of the above to enhance shareholder return in the medium term
Strengthening effectiveness of governance and enhance fiduciary duties
  • ・Enhance supervisory functions and improve management decision-making efficiency by transitioning to a “company with Three Committees” model.
  • ・Promote fiduciary duties and enhancement of conflict of interest management in operations, including asset management-related businesses

Total Solution Model

Total Solution Model

Financial Operations, Capital Strategy

Our Basic Philosophy

While seeking to bolster the soundness of our financial base by securing our capital position in terms of both quality and quantity, our basic philosophy is to aim to maximize shareholder earnings through the pursuit of improved capital efficiency.

Maximize Corporate Value via Well-Balanced Capital Management

Improve shareholders’ equity, reinforce our financial base

  • ・Strive to improve and bolster our shareholders’ equity and financial base through profit accumulation, reduction of financial risks, and appropriate controls of risk assets
  • ・Stable, planned funding procurement for the medium and long terms of additional Tier 1 capital and Tier 2 capital to satisfy prudential regulatory capital ratio requirements while taking capital efficiency into account

Pursue profit growth opportunities

  • ・In focus areas where we can use our unique strengths as a Group, strategically examine and advance use of M&A to flexibly capture external growth opportunities
  • ・Designate our asset management and administration businesses as priority areas and bolster our administration of trust and assets
  • ・Through the use of strategic alliances, improve product formulation capabilities of asset management and administration of the Group, expand distribution channels for products and functions the Group offers, harness FinTech, and advance streamlining of operational processes

Bolster shareholder returns over medium term

  • ・The policy of Sumitomo Mitsui Trust Holdings (“SuMi TRUST Holdings”) on shareholder return is to share its profits with shareholders in accordance with its profit level in each fiscal year, aiming to maintain the consolidated dividend payout ratio on common shares of approximately 30%. SuMi TRUST Holdings may also repurchase its own shares by considering the balance with profit growth opportunities, and the effect of the repurchase on the improvement of capital efficiency. Through the measures above, SuMi TRUST Holdings shall aim to enhance medium-term shareholder returns by increasing a total shareholder return to approximately 40% in a gradual manner.

Financial- and Capital-related Key Performance Indicators (KPI)

  KPIs Medium-term Target Level
Profitability ROE Approximately 8% (long-term target of 10%)
Soundness Common equity Tier 1 capital ratio
(fully loaded basis)
Stay at approximately 10% consistently
Strategic Shareholdings Aim to reduce ratio of strategic shareholdings to CET1 capital by 50% in approximately five years from fiscal year 2016
Shareholder Returns Dividend payout ratio Maintain approximately 30%
Total payout ratio Gradually increase to approximately 40% over the medium term

This icon indicates that the transition to an external website.