Sumitomo Mitsui Financial: Positive About Ambitious Targets And Dividend Upside

Sumitomo Mitsui Financial Group remains a 'Buy' with a 27% capital appreciation potential based on my target 2.00x P/B multiple. SMFG has upgraded its FY29 international income target to ¥0.14T, driven by Indian and Indonesian operations, with overall foreign ROTE expected to rise from 8.9% to 20%. Olive, SMFG’s fintech superapp, now targets ¥0.11T FY29 earnings, leveraging strategic partnerships with convenience store chain 7-Eleven and fresh in-app advisory solutions. Dividend growth is prioritized over buybacks, with management committing to annual increases, supporting a rising dividend yield. I'm still bullish on Sumitomo Mitsui Financial Group, Inc. (SMFG) (8316.T). SMFG is increasingly confident about the outlook of its non-Japanese and fintech units. Expectations of growing dividends over time will also attract income-oriented investors.