v3.26.1
Intangible Assets
 12 Months Ended
Mar. 31, 2026
Text Block1 [Abstract]  
Intangible Assets
14
INTANGIBLE ASSETS
Goodwill
The table below shows the changes in goodwill by business segment for the fiscal years ended March 31, 2026 and 2025.
 
 
  
Retail

Business Unit
 
 
Global

Business Unit
 
 
Head office

account and
others
 
 
Total
 
 
  
(In millions)
 
Gross amount of goodwill
(1)
    ¥ 61,952     ¥ 229,934     ¥ 55,076     ¥ 346,962  
Accumulated impairment losses
(1)
      —       —       (42,398 )      (42,398 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net carrying amount at April 1, 2024
      61,952       229,934       12,678       304,564  
  
 
 
    
 
 
    
 
 
    
 
 
  
Impairment losses
      (5,000 )      (3,032 )      —       (8,032 ) 
Exchange differences
      —       (7,884 )      —       (7,884 ) 
Other
      —       (1,134 )      —       (1,134 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net carrying amount
      56,952       217,884       12,678       287,514  
Gross amount of goodwill
(1)
      56,952       220,916       55,076       332,944  
Accumulated impairment losses
(1)
      —       (3,032 )      (42,398 )      (45,430 ) 
  
 
 
    
 
 
    
 
 
    
 
 
  
Net carrying amount at March 31, 2025
      56,952       217,884       12,678       287,514  
  
 
 
    
 
 
    
 
 
    
 
 
  
Acquisitions
(2)
     43,898       —       —       43,898  
Exchange differences
      —       (6,321 )     —       (6,321 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Net carrying amount
      100,850       211,563       12,678       325,091  
Gross amount of goodwill
(1)
      100,850       214,595       55,076       370,521  
Accumulated impairment losses
(1)
      —       (3,032 )     (42,398 )     (45,430 )
  
 
 
    
 
 
    
 
 
    
 
 
  
Net carrying amount at March 31, 2026
    ¥ 100,850     ¥ 211,563     ¥ 12,678     ¥ 325,091  
  
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
The goodwill where all amounts have been impaired is excluded from the gross amount of goodwill and accumulated impairment losses.
(2)
The Group recognized goodwill of ¥43,898
million in the Retail Business Unit on March 31, 2026, resulting from the acquisition of CCC MK HOLDINGS Co., Ltd., which changes its corporate name to V POINT MARKETING Co., Ltd. on April 1, 2026.
The Group has four main business segments: the Wholesale Business Unit, the Retail Business Unit, the Global Business Unit and the Global Markets Business Unit, with the remaining operations recorded in the Head office account and others.
 
Impairment testing of goodwill
Allocating goodwill to cash-generating units
For the purpose of impairment testing, goodwill is allocated to cash-generating units or group of cash-generating units, which represent the lowest level within the entity at which goodwill is monitored for internal purposes.
At March 31, 2026, the Group allocated goodwill to the Retail Business Unit of SMBC Consumer Finance Co., Ltd. (“SMBC Consumer Finance”) and
CCC MK HOLDINGS
Co., Ltd. to
¥56,692 
million and
¥43,898 
million, respectively, to the Global Business Unit of SMFG India Credit Company Limited amounting to
¥196,311 
million and to the Head office account and others of Sumitomo Mitsui DS Asset Management Company, Limited (“SMDAM”) amounting to ¥12,678 
million.
At March 31, 2025, the Group allocated goodwill to the Retail Business Unit of SMBC Consumer Finance amounting to ¥
56,692
 million, to the Global Business Unit of SMFG India Credit Company Limited amounting to ¥
203,281
 million and to the Head office account and others of SMDAM amounting to ¥
12,678
 million.
The aggregate amounts of other goodwill were ¥15,512 million and ¥14,863 million at March 31, 2026 and 2025, respectively, and they were not considered individually significant.
Timing of impairment tests
The Group performs impairment tests at least annually and whenever there is an indication that the cash-generating unit may be impaired.
Recoverable amount of cash-generating units
To determine whether an impairment loss shall be recognized, the carrying amount of a cash-generating unit is compared to its recoverable amount. The recoverable amount of a cash-generating unit is the higher of its fair value less costs to sell and its value in use.
Fair value less costs to sell
: The fair value less costs to sell is determined using an observable market price in the active market or unobservable inputs for the cash-generating unit at the date of the impairment test.
Value in use
: The value in use is determined based on discounted future cash flows, which are based on the financial plans which have been approved by management and which are valid when the impairment test is performed. The financial plans are prepared taking into account the current economic and regulatory environment, direction of the regulation and business forecasts of the individual cash-generating units. The Group determined the recoverable amounts of the primary cash-generating units based on the value in use.
The financial plans, which are used to estimate the cash flow projections of the cash-generating units, cover three to five years. The cash flow projections beyond the period covered by the financial plans are extrapolated by applying the appropriate growth rates in perpetuity.
 
Key assumptions used in impairment testing
The key assumptions used for the value in use calculations for the fiscal years ended March 31, 2026 and 2025 were as follows:
 
 
  
SMBC
Consumer
Finance
 
 
SMDAM
 
 
SMFG
India
Credit
Company
Limited
 
 
CCC MK
HOLDINGS
Co., Ltd.
 
For the fiscal year ended March 31, 2026:
  
 
 
 
Pre-tax
discount rate
      12.34 %      11.90 %      16.80 % 
 
 
 11.23 % 
Growth rate
      1.00 %      2.00 %      8.00 % 
 
 
 2.00 % 
For the fiscal year ended March 31, 2025:
       
 
 
 
 
Pre-tax
discount rate
      10.12 %      12.30 %      16.90 % 
 
 
 — % 
Growth rate
      1.00 %      2.00 %      8.00 % 
 
 
 — % 
Management considers that the
pre-tax
discount rates and the growth rates are the most sensitive key assumptions to determine the value in use of the cash-generating units.
Pre-tax
discount rate
: The
pre-tax
discount rates used to estimate the discounted cash flow of the primary cash-generating units are determined based on the Capital Asset Pricing Model (“CAPM”). The risk-free interest rate, the market risk premium and the beta factor that are used in the CAPM are determined based on market data and other external sources of information. The beta factor is determined based on a respective group of peer companies of the cash-generating units.
Growth rate
: The growth rates used to estimate the cash flow projections beyond the period covered by the financial plans, which shall cover a maximum period of five years, are determined based on the expected long-term inflation rate and long-term average growth rates for the industries. The growth rate does not exceed the long-term growth rate for the industry in which the cash-generating unit operates.
Management believes that there were no reasonably possible changes in any of the key assumptions that would lead to the recoverable amounts of the cash-generating units being below these carrying amounts for the fiscal years ended March 31, 2026 and 2025.
 
Other Intangible Assets
The table below shows the changes in other intangible assets for the fiscal years ended March 31, 2026 and 2025.
 
 
  
Internally
generated
software
 
 
Purchased
software
 
 
Contractual
customer
relationships
 
 
Trademarks
 
 
Other
intangibles
 
 
Total
 
 
  
(In millions)
 
Cost
  
¥
967,957
 
 
¥
659,496
 
 
¥
177,361
 
 
¥
41,828
 
 
¥
108,611
 
 
¥
1,955,253
 
Accumulated amortization and impairment losses
  
 
(557,306
) 
 
 
(446,880
) 
 
 
(143,014
) 
 
 
(41,828
) 
 
 
(45,241
) 
 
 
(1,234,269
) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net carrying amount at April 1, 2024
  
 
410,651
 
 
 
212,616
 
 
 
34,347
 
 
 
—
 
 
 
63,370
 
 
 
720,984
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions
  
 
176,356
 
 
 
77,450
 
 
 
—
 
 
 
—
 
 
 
11,169
 
 
 
264,975
 
Acquisition of subsidiaries and businesses
  
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Disposals
  
 
(401
) 
 
 
(1,752
) 
 
 
—
 
 
 
—
 
 
 
(2
) 
 
 
(2,155
) 
Amortization
  
 
(106,173
) 
 
 
(64,853
) 
 
 
(10,462
) 
 
 
(541
) 
 
 
(16,001
) 
 
 
(198,030
) 
Impairment losses
  
 
(250
) 
 
 
(1,239
) 
 
 
—
 
 
 
—
 
 
 
(62
) 
 
 
(1,551
) 
Exchange differences
  
 
(72
) 
 
 
(1,071
) 
 
 
(761
) 
 
 
(162
) 
 
 
(787
) 
 
 
(2,853
) 
Others
  
 
9,580
 
 
 
20,907
 
 
 
580
 
 
 
3,088
 
 
 
(11,845
) 
 
 
22,310
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net carrying amount
  
 
489,691
 
 
 
242,058
 
 
 
23,704
 
 
 
2,385
 
 
 
45,842
 
 
 
803,680
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost
  
 
1,078,808
 
 
 
664,363
 
 
 
80,541
 
 
 
44,754
 
 
 
182,864
 
 
 
2,051,330
 
Accumulated amortization and impairment losses
  
 
(589,117
) 
 
 
(422,305
) 
 
 
(56,837
) 
 
 
(42,369
) 
 
 
(137,022
) 
 
 
(1,247,650
) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net carrying amount at March 31, 2025
  
 
489,691
 
 
 
242,058
 
 
 
23,704
 
 
 
2,385
 
 
 
45,842
 
 
 
803,680
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions
  
 
242,226
 
 
 
86,490
 
 
 
—
 
 
 
—
 
 
 
2,485
 
 
 
331,201
 
Acquisition of subsidiaries and businesses
  
 
—
 
 
 
3,218
 
 
 
—
 
 
 
—
 
 
 
632
 
 
 
3,850
 
Disposals
  
 
(72,891
) 
 
 
(1,496
) 
 
 
—
 
 
 
—
 
 
 
(3,711
) 
 
 
(78,098
) 
Amortization
  
 
(112,194
) 
 
 
(72,930
) 
 
 
(5,439
) 
 
 
(547
) 
 
 
(9,163
) 
 
 
(200,273
) 
Impairment losses
  
 
(1,247
) 
 
 
(1,141
) 
 
 
—
 
 
 
—
 
 
 
(1
) 
 
 
(2,389
) 
Exchange differences
  
 
1,426
 
 
 
4,484
 
 
 
335
 
 
 
88
 
 
 
496
 
 
 
6,829
 
Others
  
 
847
 
 
 
53,607
 
 
 
—
 
 
 
—
 
 
 
(1,885
) 
 
 
52,569
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net carrying amount
  
 
547,858
 
 
 
314,290
 
 
 
18,600
 
 
 
1,926
 
 
 
34,695
 
 
 
917,369
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost
  
 
982,259
 
 
 
662,508
 
 
 
81,007
 
 
 
44,884
 
 
 
92,725
 
 
 
1,863,383
 
Accumulated amortization and impairment losses
  
 
(434,401
) 
 
 
(348,218
) 
 
 
(62,407
) 
 
 
(42,958
) 
 
 
(58,030
) 
 
 
(946,014
) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net carrying amount at March 31, 2026
  
¥
547,858
 
 
¥
314,290
 
 
¥
18,600
 
 
¥
1,926
 
 
¥
34,695
 
 
¥
917,369
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The impairment losses on other intangible assets are included in “Other expenses” and the amortization expenses of other intangible assets are included in “General and administrative expenses” in the consolidated income statements.
The Group had ¥1,474 million and ¥179 million of contractual commitments to
acquire
intangible assets at March 31, 2026 and 2025, respectively.