November 12, 2019Sony Financial Holdings Inc.

Summary Information on Sony Bank’s Financial Results
for the Six Months Ended September 30, 2019
<Contents>
1. Consolidated Balance Sheets
2. Consolidated Statements of Income and Consolidated Statements ofComprehensive Income

P.2
P.3

(1) Consolidated Statements of Income

P.3(2) Consolidated Statements of Comprehensive Income

P.3

3. Fair Value Information (Consolidated)

P.4

4. Non-consolidated Balance Sheets

P.5

5. Non-consolidated Statements of Income

P.6

6. Supplementary Information

P.7(1) Interest spread (Non-consolidated)

P.7(2) Deposits and loans (Non-consolidated)

P.7(3) Balance of time deposits by remaining period (Non-consolidated)

P.8(4) Balance of securities by ratings (Non-consolidated)

P.8(5) Loans by Borrower Category (Non-consolidated)

P.8(6) General and Administrative Expenses (Non-consolidated)

P.9(7) Number of Executives and Employees (Non-consolidated)

P.9(8) Consolidated Capital Adequacy Ratio (Domestic Standard)

P.10(9) Non-consolidated Capital Adequacy Ratio (Domestic Standard)

P.11

Disclaimer:This English translation is prepared for the readers’ convenience. When there are any discrepancies between original
Japanese version and English translation version, the original Japanese version always prevails.

11. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019
Assets:Cash and due from banks
Monetary claims purchased
Money held in trust
Securities
Loans
Foreign exchanges
Other assets
Tangible fixed assets
Intangible fixed assets
Deferred tax assets
Reserve for possible loan losses
Total Assets
Liabilities:
Deposits
Call money and bills soldPayables under repurchase agreements
Borrowed money
Foreign exchanges
Other liabilities
Reserve for employees' bonuses
Net defined benefit liability
Provision for reimbursement of deposits
Total Liabilities
Net Assets:
Common stock
Capital surplus
Retained earnings
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities, net of taxes
Net deferred gains (losses) on hedging instruments, net of taxes
Remeasurements of defined benefit plans, net of taxes
Total accumulated other comprehensive income
Non-controlling interests
Total Net Assets
Total Liabilities and Net Assets

2As of September 30, 2019344,377
4,916
21,937
694,447
1,744,103
8,471
51,685
1,633
6,903
1,305
(903)
2,878,879

356,232
3,955
22,019735,082
1,839,337
9,377
50,742
1,542
6,698
993
(918)
3,025,065

2,358,182
130,611
20,290210,000
244
67,752
777
1,323
125
2,789,308

2,428,315
195,71329,673210,000
639
68,317
321
1,360
101
2,934,442

31,00021,00033,06785,067
3,974(1,260)
(106)
2,606
1,896
89,5702,878,879

31,00021,00033,79385,793
4,218(1,353)
(99)
2,765
2,063
90,622
3,025,065

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2019

Six months ended
September 30, 2018
Ordinary Revenues

22,03824,580Interest income

15,433

16,934

Interest income on loans

8,627

9,170

Interest income and dividends on securities

6,771

7,726

Fees and commissions

4,169

5,645

Other operating income

2,133

1,884

301

116

Ordinary Expenses

Other ordinary income

17,371

18,952

Interest expenses

4,032

4,851

3,141

3,924

Fees and commissionsInterest expenses on deposits

3,925

4,330

Other operating expenses

106

1

9,100

9,712

206

57

4,666

5,627

150

General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses

150

Income Before Income Taxes

Losses on disposal of fixed assets

4,651

5,627

Income Taxes—Current

1,331

1,481

Income Taxes—Deferred

101

241

Total Income Taxes

1,432

1,722

Profit

3,218

3,904

Profit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent

120

165

3,097

3,739

(2) Consolidated Statements of Comprehensive Income(Millions of yen)Six months ended
September 30, 2018
ProfitSix months ended
September 30, 2019

3,218

3,904

Net unrealized gains (losses) on available-for-sale securities, net of taxes

(871)

244

Net deferred gains (losses) on hedging instruments, net of taxes

236(92)78(627)

159

2,590

4,064

2,468

3,897

122

166

Other Comprehensive Income

Remeasurements of defined benefit plans, net of taxes
Total other comprehensive income
Comprehensive Income(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests33. Fair Value Information (Consolidated)(1) Fair value information on securitiesi) Held-to-maturity securities (As of September 30, 2019)(Millions of yen)
Balance sheet
amountFair value

Difference

Fair value exceeding balance sheet amount－－－－－－

5,392
5,392
5,392

5,388
5,388
5,388

(3)
(3)
(3)

Foreign bonds
Subtotal
Fair value not exceeding balance sheet amountForeign bonds
Subtotal
Totalii) Available-for-sale securities (As of September 30, 2019)(Millions of yen)
Balance sheetamount

Acquisition cost

Difference

Balance sheet amount exceeding acquisition cost
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
Other securities
Subtotal

131,533
61,972
19,43650,125337,535
331,616
5,918
469,069

125,786
57,045
19,16849,572329,894
326,4263,468
455,681

5,747
4,926
268
552
7,640
5,189
2,450
13,388－－－－
264,546
261,774
2,772
264,546
733,615－－－－265,572
262,800
2,772
265,572
721,254－－－－(1,026)(1,026)－(1,026)
12,361

Balance sheet amount not exceeding acquisition cost
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
Other securities
SubtotalTotal(2) Fair value information on money held in trusti) Other money held in trust (As of September 30, 2019)(Millions of yen)

Balance sheet
amountOther money held in trust

22,019Acquisition
cost

Difference

22,016

3

Balance sheet amountexceeding acquisition cost

Balance sheet amount notexceeding acquisition cost

3－Note: “Difference” consists of “Balance sheet amount exceeding acquisition cost” and “Balance sheet amount not exceeding acquisition cost.”

44. Non-consolidated Balance Sheets(Millions of yen)
As of
September 30, 2018
(A)

As of
September 30, 2019
(B)

331,504

350,391

As ofMarch 31, 2019
(C)

Change(B-A)

Change(B-C)

Assets:Cash and due from banks+18,886

343,063+7,327

Monetary claims purchased

3,271

3,955

+684

4,916

(960)

Money held in trust

21,00022,019+1,01921,937+82

Securities
Loans

732,577

737,103+4,525

696,468+40,634

1,638,373

1,839,337+200,964

1,744,103+95,233

Foreign exchanges

9,968

9,377(590)

8,471+905

Other assets

37,29335,774(1,519)35,443+331

Tangible fixed assets

1,118

1,037(81)

1,092

(54)

Intangible fixed assets

4,220

5,033+812

5,200

(166)

Deferred tax assets

163

817+653

1,133

(315)

Reserve for possible loan losses

(877)

(918)

(40)

(903)

(14)

2,778,613

3,003,928+225,314

2,860,925+143,002

Deposits

2,308,972

2,429,318+120,345

2,358,985+70,333

Call money

121,280

195,713+74,433

130,611+65,102

Payables under repurchase agreements

23,247

29,673+6,425

20,290+9,382

Total Assets
Liabilities:

Borrowed money

190,000

210,000+20,000

210,000－Foreign exchanges

112

639+527244+394

Other liabilities

47,78949,296+1,506

51,717(2,420)

Reserve for employees' bonuses351

215(135)

677(462)

Reserve for employees' retirement benefits

966

1,033

+66

994+38Provision for reimbursement of deposits

99

101+1125(24)2,692,820

2,915,990+223,170

2,773,646+142,344

Total Liabilities
Net Assets:
Common stock

31,00031,000－31,000－Capital surplus

21,00021,000－21,000－Retained earnings

29,47733,072+3,594

32,565+506

Total shareholders' equity
Net unrealized gains (losses) on
available-for-sale securities, net of taxes
Net deferred gains (losses) on
hedging instruments, net of taxes

81,47785,072+3,59484,565+506

5,165

4,218(947)

3,974+244(850)(1,353)(503)(1,260)(92)

Total valuation and translation adjustments

4,315

2,865(1,450)

2,713+151

Total Net Assets
Total Liabilities and Net Assets

85,79387,937+2,144

87,279+657

2,778,613

3,003,928+225,314

2,860,925+143,002

55. Non-consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2018
(A)

Six months ended
September 30, 2019
(B)

(Reference)
For the year ended
March 31, 2019

Ordinary Revenues

19,911

22,219+2,30841,707

Interest income

15,433

16,934+1,50031,926

Interest income on loans

8,627

9,170+542

17,473

Interest income and dividends on securities

6,771

7,726+955

14,382

Change(B-A)

Fees and commissions

2,042

3,284+1,242

5,338

Other operating income

2,133

1,884(249)3,926

Gains on foreign exchange transactions

1,861

1,666(195)

3,599

301

116(184)

515

Ordinary Expenses

Other ordinary income

15,66817,136+1,46833,009Interest expenses

4,031

4,850+818

8,643Interest expenses on deposits

3,141

3,924+783

6,747

Fees and commissions

3,665

4,036+371

7,573

Other operating expenses

106

0(105)

485

7,659

8,194+535

15,901205

54(151)405

Ordinary Profit

4,242

5,082+840

8,698

Income Before Income Taxes

4,242

5,082+840

8,698

Income Taxes—Current

1,198

1,314+115

2,828

Income Taxes—Deferred107

248+141(155)

Total Income Taxes

1,305

1,563+257

2,673

Net Income

2,937

3,519+582

6,025

General and administrative expenses
Other ordinary expenses(Reference) Non-consolidated Statements of Income for the three months ended September 30, 2019
(Millions of yen)Three months ended
September 30, 2018
(A)

Three months ended
September 30, 2019
(B)

Change(B-A)

Ordinary Revenues

10,188

11,446+1,258

Interest income

7,938

8,534+596

Interest income on loans

4,318

4,650+331

Interest income and dividends on securities
Fees and commissions
Other operating income

3,601
1,065
1,081

3,865
1,842
1,004+263+776(76)Gains on foreign exchange transactions

866

908+41Other ordinary income

10364(38)

Ordinary Expenses

7,978

8,537+558

Interest expenses

2,115

2,418+303

Interest expenses on deposits

1,629

1,958+329

Fees and commissions

1,815

1,990+174

Other operating expenses

104－(104)

3,882

4,077+194

General and administrative expenses

5950(8)

Ordinary Profit

Other ordinary expenses

2,2092,909+699

Income Before Income Taxes

2,209

2,909+699

Income Taxes —Current

782

992+209

Income Taxes —Deferred

(106)

(99)

+6

Total Income Taxes

676892+216

1,533

2,016+483

Net Income66. Supplementary Information(1) Interest spread (Non-consolidated)(%)
For the six months ended
September 30, 2019

For the six months ended
September 30, 2018
①1.13

1.15

Yield on loans

1.06

1.03

Yield on securities

1.88

2.14

Yield on investment

②0.89

0.92

③0.30

0.34

Yield on deposits

0.27

0.33

Yield on external liabilities

0.02

0.10

Financing cost
Yield on financing

0.67

0.68

Interest spread

Expense ratio
①－③

0.82

0.80

Overall profit margin

①－②

0.24

0.23

Note: External liabilities are equal to a total of call money and borrowed money.

(2) Deposits and Loans (Non-consolidated)(Millions of yen, %)For the six months ended
September 30, 2018
Balanceat the end

Averagebalance

2,308,972

2,263,662

1,909,841

For the six months ended
September 30, 2019
Balanceat the end

Averagebalance

0.27

2,429,318

2,399,307

0.33

1,862,428

0.09

1,979,985

1,964,343

0.10

759,136

722,1310.00

809,868

801,6970.00

1,149,708

1,139,304

0.16

1,168,179

1,161,142

0.17

Foreign currency deposits

399,131401,233

1.10

449,333

434,964

1.35

Ordinary deposits

166,615

176,548

0.38

179,326

172,998

0.48

Time deposits

232,434

224,612

1.66

269,911

261,866

1.93

1,638,373

1,618,089

1.06

1,839,337

1,782,543

1.03

1,574,800

1,548,816

0.98

1,790,921

1,731,356

0.96

63,572

69,273

2.71

48,416

51,186

3.38

Deposits
Yen deposits
Ordinary deposits
Time deposits

Loans
Mortgage loans
Others

Yield

Yield

Note: The average balance of foreign currency deposits during the term is calculated as the average during the period of the yen
equivalent value of each day’s foreign currency deposit balance.

7(3) Balance of Time Deposits by Remaining Period (Non-consolidated)(Millions of yen)
As of September 30, 2018

As of September 30, 2019

Remaining period

Yen

Foreigncurrency

Total

Yen

Foreigncurrency

Total

Less than 3 months

286,976

131,620

418,596

296,409

157,563

453,9723 months or more, less than 6 months

424,682

46,842471,524

418,096

54,749472,846

6 months or more, less than 1 year

239,516

41,798281,314261,678

46,400308,079

1 year or more, less than 2 years

45,857

9,701

55,55954,6097,748

62,357

2 years or more, less than 3 years

17,963

2,460

20,423

10,762

3,448

14,2103 years or more

50,6661150,677

37,603

137,605

232,434 1,298,097

1,079,160

Total

1,065,662

269,911 1,349,071

Note: The above table does not include thrift saving deposits.

(4) Balance of Securities by Rating (Non-consolidated)(Millions of yen, %)As of September 30, 2018
Ratings

Balance

As of September 30, 2019

Composition

BalanceComposition

AAA

300,292

41.0

327,84944.5

AA94,95913.0

63,342

8.6

A

315,39443.0

307,513

41.7

BBB

14,4792.0

29,617

4.0

Unrated

7,450

1.0

8,780

1.2

Total

732,577

100.0

737,103

100.0

Notes: 1. Sony bank uses the Basel III standardized method and classifies its securities based on rating by five rating agencies:
Moody's Investors Service, S&P Global Ratings, Ratings and Investment Information, Japan Credit Rating Agency and FitchRatings.
2. The unrated items on the above table include \1,995 million of investments in foreign bonds, \4,735 million of investments inunrated investment trusts, and \2,050 million of investments in shares of a subsidiary.

(5) Loans by Borrower Category (Non-consolidated)(Millions of yen)

Category

As of September 30, 2018

As of September 30, 2019

AmountAmountBankrupt and quasi-bankrupt loans

531

589

Doubtful loans

681

837

Sub-standard loans

756896

Normal loans

1,646,982

1,847,010

Total

1,648,951

1,849,334

8

(6) General and Administrative Expenses (Non-consolidated)
For the six months ended
September 30, 2018
Personnel expenses
Non-personnel expenses
Depreciation and amortization
Taxes
Total

Amount
2,306
4,815
655
537
7,659

%
30.1
62.9
8.6
7.0
100.0

(Millions of yen, %)For the six months ended
September 30, 2019
Amount
2,346
5,326
750
521
8,194

%
28.6
65.0
9.2
6.4
100.0

(7) Number of Executives and Employees (Non-consolidated)
As of September 30, 2018
Executive management
Directors
Audit & supervisory board members
Employees

954500(Persons)
As of September 30, 2019954516

Notes:1. The number of directors include one outside director and the number of audit & supervisory board members
include two outside audit & supervisory board members.
2. The number of employees exclude temporary employees and subcontracted employees seconded to Sony Bank.

9(8) Consolidated Capital Adequacy Ratio (Domestic Standard)(Millions of yen, %)As ofSeptember 30, 2019
Core capital: instruments and reserves
Directly issued qualifying common share capital or preferred share capital witha compulsory conversion clause plus related capital surplus and retained earnings

85,793

Capital and capital surplus

52,000Retained earnings

33,793

Accumulated other comprehensive income included in core capital(99)

Remeasurements of defined benefit plans(99)

Eligible capital instruments included in core capital: instruments and reserves

6,681

Non-controlling interests included in core capital subject to transitional arrangements

1,031Core capital: instruments and reserves(A)

93,406

Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)

4,647

Other intangible assets excluding goodwill and mortgage servicing rights

4,647

Shortfall of eligible reserves to expected losses

894Core capital: regulatory adjustments

(B)

5,541

(C)

87,865

CapitalCapital((A) - (B))

Risk-weighted assets
Total amount of credit risk-weighted assets

576,908

Total amount included in risk-weighted assets subject to transitional arrangements(10,102)

Exposure to other financial institutions(10,102)

Total amount of operational risk equivalent / 8%

50,119Adjustment to credit risk-weighted assets

307,242

Total amount of risk-weighted assets(D)

934,269((C) / (D))

9.40%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of
September 30, 2019
Consolidated total capital requirements (Domestic standard) (Total risk-weighted assets by 4%)1037,370

(9) Non-consolidated Capital Adequacy Ratio (Domestic Standard)(Millions of yen, %)As of
September 30, 2019
Core capital: instruments and reserves
Directly issued qualifying common share capital or preferred share capital witha compulsory conversion clause plus related capital surplus and retained earnings

85,072

Capital and capital surplus

52,000Retained earnings

33,072

Eligible capital instruments included in core capital: instruments and reserves

6,681Core capital: instruments and reserves(A)

91,753

Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)

3,492

Other intangible assets excluding goodwill and mortgage servicing rights

3,492

Shortfall of eligible reserves to expected losses

894Core capital: regulatory adjustments

(B)

4,386

(C)

87,367

CapitalCapital((A) - (B))

Risk-weighted assets
Total amount of credit risk-weighted assets

577,936

Total amount included in risk-weighted assets subject to transitional arrangements(10,102)

Exposure to other financial institutions(10,102)

Total amount of operational risk equivalent / 8%

43,500Adjustment to credit risk-weighted assets

306,015

Total amount of risk-weighted assets(D)

927,451((C) / (D))

9.42%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of
September 30, 2019Non-consolidated total capital requirements (Domestic standard) (Total risk-weighted assets by 4%)1137,098