Sumitomo Mitsui Financial Group is one of Japan’s Big Three banking groups. Compared with its two megabank rivals, SMFG has a greater focus on retail customers and small and midsize enterprises rather than large corporate clients. We expect this exposure to help SMFG benefit from the rising interest rates and price reflation in Japan that are leading to rising property values and increased demand for mortgages.
SMFG historically achieved a higher return on equity than its megabank competitors MUFG and Mizuho and may be able to restore its advantage given its comfortable capital position.
SMFG's larger exposure to retail and small-business borrowers in Japan rather than large corporate borrowers pose risks for higher credit costs than peers as interest rates rise.
|
Metric
|
8316
|
HSBC
|
MFG
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.20 | 9.33 | 14.18 |
Price/Book Value | 1.60 | 1.90 | 1.84 |
Price/Sales | 4.22 | 4.49 | 4.51 |
Price/Cash Flow | 28.29 | 6.58 | — |
|
Metric
|
8316
|
HSBC
|
MFG
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | — | — | — |
|
Metric
|
8316
|
HSBC
|
MFG
|
|---|---|---|---|
Return on Assets (Normalized) | 0.80% | 0.84% | 0.61% |
Return on Equity (Normalized) | 16.28% | 15.18% | 16.24% |
Return on Invested Capital (Normalized) | — | — | — |
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1-Day Chart
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Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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United States