NEWS RELEASE. R&I Affirms Ratings: SMBC Group R&I Changes Outlook to Positive: SMBC Consumer Finance Co., Ltd.

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1 R&I Affirms Ratings: SMBC Group R&I Changes Outlook to Positive: SMBC Consumer Finance Co., Ltd. Rating and Investment Information, Inc. (R&I) has announced the following: SEC. COMPANY NAME CODE 8316 Sumitomo Mitsui Financial Group, Inc Sumitomo Mitsui Banking Corp SMBC Nikko Securities Inc Sumitomo Mitsui Card Co., Ltd SMBC Consumer Finance Co., Ltd. * Please refer below for rated bonds, etc. Dec 07, 2018 RATIONALE: The SMBC Group is a leading financial group in the world, particularly in commercial banking, and is one of Japan's three mega-banking groups. It also has a high market position in securities brokerage, investment banking, credit card, leasing, consumer finance and asset management, among others. Its domestic franchise is extremely strong in both the corporate and individual sectors. In overseas markets as well, the group has several products with competitive advantages and has been gradually solidifying its position as a "core bank" for global companies in recent years, supported by enhanced competitiveness. With an aim to become an Asia-centric global financial institution, it is concentrating management resources in the Asian region from a mid- to long-term perspective. The group plans to merge PT Bank Tabungan Pensiunan Nasional Tbk (BTPN), an Indonesian bank that is an equity-method affiliate of Sumitomo Mitsui Banking Corp. (SMBC), with an Indonesian bank subsidiary of SMBC in 2H FY2018 (the year ending March 2019) and make the newly merged bank a consolidated subsidiary of SMBC. Given the current rating, its earning capacity is slightly low and requires some improvement. While earnings sources have been relatively diversified by business line and geography and the SMBC Group has higher earning capacity than the other two mega-banking groups supported by its strength in the retail sector and the efficiency enhancement measures taken ahead of them, a challenging earnings environment at home and abroad has been a drag on the earning capacity. Nevertheless, earnings from customer transactions are rebounding. Market-related transactions are also showing decent performance, with flexible operations working effectively. Thanks partly to ongoing structural reforms, the earning capacity will likely trend at a solid level. The medium-term management plan started from FY2017 calls for cost savings of 50 billion yen through digitalization and other initiatives, and a profit boost totaling 95 billion yen across business units. With respect to cost savings, the group also targets more than 100 billion yen over several years. Integrated group management and productivity enhancement would help bolster the group's earning capacity. The SMBC Group's risk appetite is relatively high compared to the other two mega-banking groups, though not particularly high when viewed globally. Its business portfolio focused on commercial banking is stable. Earnings sources are comparatively diversified both in terms of business line and geography. Although the group has seen a rise in risks inherent in emerging markets, especially in Asia, and moved to expand customer segments and products-related credits overseas in particular, a substantial increase in its overall risk appetite has not been observed. As regards the risk profile of the group's assets, credit concentration in large Japanese borrowers is high but not a problem because many of them are companies with high ratings. Comparatively large equity risk is on the decline. Interest rate risk, though low at present, is potentially relatively large, given the widened gap between yen deposits and loans. Future prospects are becoming increasingly uncertain owing to

2 changes in economic trends including the slowing global economy after long periods of expansion, concerns over trade friction between the U.S. and China, and global imbalances associated with surplus funds, among others. It is important to enhance an ability to respond to changes in the business environment by sophisticating a risk appetite framework and instilling it in corporate culture. The SMBC Group's risk resilience is commensurate with the AA rating category. This is mainly attributable to increased capital, though the risk associated with assets is relatively high. Improvements through reductions in cross-shareholdings are expected to continue for the foreseeable future. The Common Equity Tier 1 (CET1) capital ratio as of end-september 2018 was comparatively high at 11.5% (9.8% if net unrealized gains on other securities and associated risk-weighted assets are deducted) on a finalized Basel 3 reforms basis. The group may also see a net increase of tens of basis points in the CET1 capital ratio by converting a consolidated leasing subsidiary into an equity-method affiliate and making Indonesia-based BTPN a consolidated subsidiary in the future. Even if interest rate risk in the banking book is taken into consideration, sufficient capital levels are ensured. Moreover, the fundamental review of the trading book will likely have only a limited impact, given the nature of the group's business activities centered on commercial banking. Asset quality is sound. Credit costs are stable at low levels. This is primarily because many large Japanese companies, which represent a significant proportion of the SMBC Group's credit portfolio, are highly rated. The group adopts a stricter provisioning policy, as reflected in a higher provision rate for large problem borrowers. R&I is mindful of increasing credits to local companies and individuals overseas, especially in Asia, which are mainly provided by the local banks that joined the group. On the whole, however, a majority of overseas borrowers have high ratings, so the quality of overseas assets is also sound. The SMBC Group has sufficient liquidity thanks to its huge yen deposit base in the domestic individuals segment and low loan-deposit ratio. Although foreign currency funding is exposed to structural instability, concern is limited because it has expanded customer deposits. The group is curbing funding costs through flexible foreign currency funding and has also increased low-cost, stable funding sources with the issuance of covered bonds backed by Japanese residential mortgages. Sumitomo Mitsui Financial Group, Inc. Sumitomo Mitsui Financial Group, Inc. is the holding company of the SMBC Group. The rating reflects the entire group creditworthiness. However, it is one notch lower than those of the group's core companies because of the structural subordination inherent in a holding company, among other reasons. Sumitomo Mitsui Banking Corp. Sumitomo Mitsui Banking Corp. (SMBC) is the core commercial bank of the SMBC Group. Since it accounts for the majority of the group's customer base, earnings and risks, the rating directly reflects the entire group creditworthiness. SMBC has a well-balanced and strong customer base consisting of large corporations, mid-tier firms, small and medium-sized enterprises and individuals. The bank plans to reorganize its retail branches by, for example, completing the introduction of next-generation branches at all domestic retail branches by FY2019 and digitalizing operational processes. SMBC Nikko Securities Inc. SMBC Nikko Securities Inc. is the core securities company of the SMBC Group. Based on its cohesiveness with the group, the rating directly reflects the entire group creditworthiness. In the domestic retail business, the company has a solid franchise. It is expanding the franchise through bank-securities integrated operations, in addition to services to long-standing customers. Moreover, restructuring of the wholesale business has been underway since SMBC Nikko Securities joined the SMBC Group. With the retail business representing a large proportion of total earnings, the company has a structure that allows it to generate relatively stable earnings compared to other securities firms. Its cost structure requires improvement given a high overhead ratio stemming from increased headcount and other factors.

3 Sumitomo Mitsui Card Co., Ltd. Sumitomo Mitsui Card Co., Ltd. is a credit card company of the SMBC Group. In April 2019, the group will raise its stake in Sumitomo Mitsui Card from 66% to 100%. At the same time, Sumitomo Mitsui Card will make fellow subsidiary Cedyna Financial Corp. a wholly-owned subsidiary. As the core company for the group's cashless payment strategies, Sumitomo Mitsui Card is increasing its importance to the group. The rating for the company directly reflects the entire group creditworthiness and is the same as that for SMBC, the group's core bank. Transaction volume is increasing steadily, and revolving card balances are growing. Fee income from merchant acquiring services and processing is also rising firmly. Operating revenues are thus expected to remain solid. While its earning capacity and risk resilience may temporarily deteriorate when combined with those of Cedyna Financial, Sumitomo Mitsui Card can expect to expand its earnings base and achieve cost savings in the medium to long term. SMBC Consumer Finance Co., Ltd. SMBC Consumer Finance Co., Ltd. is a consumer finance company of the SMBC Group. It plays a key role in the group's unsecured consumer finance business. Its strategic importance for the group is high. Owing to a heavy interest repayment burden, the rating for the company had been two notches below that for SMBC, the group's core bank. Because the burden decreased and stable contributions to group profits are becoming likely, R&I has changed the Rating Outlook to Positive. The loan balance is rising steadily. The performance of overseas subsidiaries is also solid. Guaranteed loans outstanding are not growing, affected by tightened card loan screening and self-restraint in advertising at banks. Despite external factors such as an increase in personal bankruptcies, asset quality is maintained. Since SMBC provides funds for the company, there is no concern about liquidity. The primary rating methodologies applied to this rating are provided at "R&I's Basic Methodology for Corporate Credit Ratings", "Shared Rating Approach for Financial Institutions, etc.", "Depository Financial Institutions", "Securities Firms", "Credit Card and Credit Sales", "Consumer Finance", "R&I's Analytical Approach to Financial Groups" and "R&I's Analytical Approach to Regulatory Capital Instruments and Financial Institutions". The methodologies are available at the web site listed below, together with other rating methodologies that are taken into consideration when assigning the rating. R&I RATINGS: Sumitomo Mitsui Financial Group, Inc. (Sec. Code: 8316) Non-viability Write-off Clause Sep 12, 2014 Sep 12, 2024 JPY 100,000 No.1 Non-viability Write-off Clause Sep 12, 2014 Sep 12, 2024 JPY 35,000 No.2

4 Non-viability Write-off Clause May 29, 2015 May 29, 2025 JPY 42,000 No.3 Non-viability Write-off Clause May 29, 2015 May 29, 2030 JPY 33,000 No.4 Non-viability Write-off Clause May 29, 2015 May 29, 2025 JPY 20,000 No.5 Non-viability Write-off Clause Sep 28, 2015 Oct 15, 2025 JPY 99,000 No.6 Non-viability Write-off Clause Sep 28, 2015 Oct 15, 2025 JPY 81,000 No.7 Non-viability Write-off Clause Jun 03, 2016 Jun 03, 2026 JPY 10,000 No.10 Non-viability Write-off Clause Jun 03, 2016 Jun 03, 2026 JPY 20,000 No.11 Non-viability Write-off Clause Jun 13, 2016 Jun 15, 2026 JPY 55,000 No.8 Non-viability Write-off Clause Jun 13, 2016 Jun 15, 2026 JPY 65,000 No.9

5 Non-viability Write-off Clause Sep 12, 2016 Sep 15, 2026 JPY 59,000 No.12 Non-viability Write-off Clause Sep 12, 2016 Sep 15, 2026 JPY 41,000 No.13 Non-viability Write-off Clause Mar 16, 2018 Mar 16, 2028 JPY 100,000 No.14 Sumitomo Mitsui Banking Corp. Shelf Registration (Bonds) ISSUE AMOUNT (mn): JPY 1,000,000 ISSUE PERIOD: From Jul 08, 2018 to Jul 07, 2020 (Preliminary) Unsec. Str. Bonds No.59 Issue Date Maturity Date Issue Amount (mn) Apr 23, 2014 Apr 19, 2019 JPY 50,000 Unsec. Sub. Bonds No.17 Issue Date Maturity Date Issue Amount (mn) Feb 12, 2009 Feb 12, 2019 JPY 21,500 Unsec. Sub. Bonds No.20 Issue Date Maturity Date Issue Amount (mn) Jul 24, 2009 Jul 24, 2019 JPY 73,000 Unsec. Sub. Bonds No.22 Issue Date Maturity Date Issue Amount (mn) Sep 28, 2010 Sep 28, 2020 JPY 100,000 Unsec. Sub. Bonds No.23 Issue Date Maturity Date Issue Amount (mn) Dec 17, 2010 Dec 17, 2020 JPY 50,000

6 Unsec. Sub. Bonds No.24 Issue Date Maturity Date Issue Amount (mn) Jun 01, 2011 Jun 01, 2021 JPY 40,000 Unsec. Sub. Bonds No.25 Issue Date Maturity Date Issue Amount (mn) Jun 01, 2011 Jun 01, 2026 JPY 30,000 Unsec. Sub. Bonds No.27 Issue Date Maturity Date Issue Amount (mn) Nov 02, 2011 Nov 10, 2021 JPY 40,000 Unsec. Sub. Bonds No.28 Issue Date Maturity Date Issue Amount (mn) Dec 20, 2011 Dec 18, 2026 JPY 30,000 Short-term Debts Commercial Paper Unsecured SMBC Nikko Securities Inc. Commercial Paper ISSUE LIMIT (mn): JPY 1,000,000 Unsecured Euro MTN Prog. ISSUE LIMIT (mn): JPY 1,000,000 Keepwell agreement SUPPORTED BY: Sumitomo Mitsui Financial Group, Inc. Sumitomo Mitsui Banking Corp. Sumitomo Mitsui Card Co., Ltd.

7 Commercial Paper ISSUE LIMIT (mn): JPY 200,000 Unsecured SMBC Consumer Finance Co., Ltd. A, Affirmed Positive, Changed from A preliminary rating is assigned when a provisional credit rating is needed for an individual obligation on which final terms have not been determined. A credit rating finally assigned may differ from the preliminary rating depending on, among others, the details of the actual contract of the individual obligation. A credit rating for a medium-term note (MTN) program is assigned to the program and not to individual notes issued under the program. The credit rating of individual notes is generally the same as that of the program. As regards credit-linked notes, index-linked notes or other notes, however, there are some cases where the rating on each note will not be on par with the program or no rating will be assigned, depending on the details of the individual note contract. Upon the issuer's request, R&I may assign a credit rating to individual notes issued under the program.