Side-by-side credit pricing comparison from Pillar 3 disclosures.
On a representative BBB+ EUR 25M 5-year term loan, Mizuho Financial Group is the cheaper lender by 2bp in minimum spread. For a EUR 25M facility, that's EUR 4,536 per year.
| Metric | Sumitomo Mitsui Financial Group Japan |
Mizuho Financial Group Japan |
|---|---|---|
| IRB approach | Mixed | Mixed |
| Cost-to-income | 58.2% | 64.2% |
| Effective tax rate | 28.0% | 27.0% |
| Avg corporate PD | 0.90% | 1.70% |
| Avg LGD unsecured | 41.0% | 39.0% |
| Avg LGD secured | 20.0% | 20.0% |
| Funding spread (bp) | 11bp | 12bp |
| Corporate EAD | EUR 96459bn | EUR 82518bn |
Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.
| Component | Sumitomo Mitsui Financial Group | Mizuho Financial Group |
|---|---|---|
| Annual revenue | EUR 385,000 | EUR 385,000 |
| Operating cost | EUR 154,000 | EUR 154,000 |
| Expected loss | EUR 28,750 | EUR 28,750 |
| Capital required (FPE) | EUR 2,451,320 | EUR 2,451,320 |
| RAROC (after tax) | 7.35% | 7.37% |
| Min spread for 12% RAROC | 256bp | 254bp |
Your actual portfolio has different ratings, sizes, maturities, and collateral. The cheapest bank for one deal isn't always cheapest for another. Upload your real facilities and OpenRAROC will run the same calculation on each, against Sumitomo Mitsui Financial Group, Mizuho Financial Group, and 57 other banks.
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