SMBC Reports Q3 2024 Financial Results: Net Income Declines

authorIntellectia.AI2024-10-29
6
SMBC.O
Illustration by Intellectia.AI

Sumitomo Mitsui Banking Corporation (SMBC) has released its financial results for the third quarter of 2024, showcasing a net income of $12,458,000. This represents a decrease from the previous quarter's net income of $13,530,000. The bank's total interest income for the quarter was $67,378,000, up from $64,667,000 in the previous quarter. However, interest expenses also rose to $30,717,000 from $29,572,000.

Net interest income for the quarter was $36,661,000, an increase from $35,095,000 in the previous quarter. The provision for credit losses increased significantly to $2,159,000 compared to $900,000 in the previous quarters.

Noninterest income saw a decline, totaling $7,174,000, down from $7,767,000. Notable components include a decrease in bank card interchange income and wealth management fees.

Noninterest expenses rose to $25,841,000 from $25,002,000, driven by higher compensation and benefits, and legal and professional fees.

The bank's total assets at the end of the quarter stood at $4,638,530,000, slightly up from $4,610,795,000 in the previous quarter. Total liabilities were $4,141,641,000, with stockholders' equity at $496,889,000.

The return on average assets was 1.07%, while the return on average common stockholders' equity was 10.0%. The net interest margin was 3.37% and the net interest spread was 2.75%. The efficiency ratio increased to 59.0% from 58.3%.

Overall, the financial results indicate a slight decline in profitability, influenced by rising interest expenses and credit loss provisions.

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