Sumitomo Mitsui Financial Upped to Strong Buy - Analyst Blog


On Aug 15, Zacks Investment Research upgraded Sumitomo Mitsui Financial Group Inc. ( SMFG ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Sumitomo Mitsui Financial has been witnessing rising earnings estimates on the back of strong fiscal first-quarter 2013 results (ended Jun 30). Moreover, this well-known foreign bank has recorded a year-to-date return of 21.6%.

Sumitomo Mitsui Financial reported its fiscal first-quarter results on Jul 29 with net income at ¥288.3 billion ($2.9 billion), more than double as compared with the year-ago earnings. Robust results for the reported quarter were primarily aided by elevated net interest income, higher fees and commissions and gains on stocks.

Net interest income increased 20.8% from the year-ago period to ¥399.7 billion ($4.0 billion). Moreover, fees and commissions rose 31.3% year over year to ¥250.3 billion ($2.5 billion).

However, on the downside, general and administrative expenses surged 6.4% year over year to ¥391.4 billion ($3.95 billion). This reflects undisciplined expense management.

Following fiscal first-quarter 2013 results, over the last 30 days, the Zacks Consensus Estimate for fiscal 2013 increased 17.9% to 99 cents per share. For fiscal 2014, the Zacks Consensus Estimate advanced 7.9% to 96 cents per share over the same time period.

Other Stocks to Consider

Besides Sumitomo Mitsui Financial, other foreign banks that are worth considering include BBVA Banco Franc ( BFR ) with a Zacks Rank #1, while Barclays PLC ( BCS ) and Mitsubishi UFJ Financial Group, Inc. ( MTU ) carry a Zacks Rank #2 (Buy).

BARCLAY PLC-ADR (BCS): Free Stock Analysis Report

BANCO FRANC-ADR (BFR): Free Stock Analysis Report

MITSUBISHI-UFJ (MTU): Free Stock Analysis Report

SUMITOMO-MITSUI (SMFG): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BCS , BFR , MTU , SMFG

More from

Related Videos



Most Active by Volume

  • $16.75 ▲ 0.12%
  • $132.54 ▲ 0.88%
  • $3.01 ▲ 19.92%
  • $34.76 ▲ 2.75%
  • $9.15 ▼ 3.58%
  • $34.71 ▼ 1.03%
  • $46.90 ▼ 1.10%
  • $15.27 ▼ 1.55%
As of 5/22/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by