• Kyodo News

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Sumitomo Mitsui Financial Group Inc. is planning to complete its public fund repayment to the government in October, some five months ahead of schedule, sources said Wednesday.

The third-largest megabank group is consulting with the Financial Services Agency on how to pay back 695 billion yen in public funds remaining at the group, they said.

If an agreement is reached this week, SMFG will soon hold a board meeting to make a decision on the repayment, the sources said.

SMFG, which owns Sumitomo Mitsui Banking Corp., has received 1.5 trillion yen in public funds for recapitalization through the government’s purchases of subordinated bonds and preferred shares.

In the final public fund repayment, government-held preferred shares may be converted into common shares and bought back by SMFG, the sources said.

The other two megabank groups — Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. — have already completed their public fund repayment.

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