May 19, 2020
Sony Financial Holdings Inc.

Summary Information on Sony Bank’s Financial Results
for the Year Ended March 31, 2020
<Contents>
1. Consolidated Balance Sheets
2. Consolidated Statements of Income and Consolidated Statements ofComprehensive Income

P.2

3. Fair Value Information (Consolidated)

P.4

4. Non-consolidated Balance Sheets

P.5

5. Non-consolidated Statements of Income

P.7

6. Supplementary Information

P.8

P.3

(1) Interest spread (Non-consolidated)

P.8(2) Deposits and loans (Non-consolidated)

P.8(3) Balance of time deposits by remaining period (Non-consolidated)

P.9(4) Balance of securities by ratings (Non-consolidated)

P.9(5) Loans by Borrower Category (Non-consolidated)

P.9(6) General and Administrative Expenses (Non-consolidated)

P.10(7) Number of Executives and Employees (Non-consolidated)

P.10(8) Consolidated Capital Adequacy Ratio (Domestic Standard)

P.11(9) Non-consolidated Capital Adequacy Ratio (Domestic Standard)

P.12

Disclaimer:This English translation is prepared for the readers’ convenience. When there are any discrepancies between originalJapanese 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
Buildings
Other tangible fixed assets
Intangible fixed assets
Software
Other 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

2

As of March 31, 2020

344,377
4,916
21,937
694,447
1,744,103
8,471
51,685
1,633
628
1,004
6,903
6,888
14
1,305
(903)
2,878,879

317,619
6,006
23,107
701,332
1,979,126
3,019
51,733
1,493
584
909
6,930
6,914
15
7,052
(846)
3,096,574

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

2,476,986
176,256
41,093247,923
684
71,283
467
1,290
111
3,016,096

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

31,00021,00037,136
89,136(10,299)(556)(53)(10,909)2,250
80,477
3,096,574

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Income(Millions of yen)
For the year ended
March 31, 2019

For the year ended
March 31, 2020

Ordinary Revenues

46,01850,272

Interest income

31,92633,950Interest income on loans

17,47318,729Interest income and dividends on securities

14,382

15,148Interest income on call loans and bills bought

10Interest income on deposits with banks

62

61

Other interest income

710

Fees and commissions

9,650

12,376

Other operating income

3,926

3,515Other ordinary income

515

429

Others515

429

Ordinary Expenses

36,42339,582

Interest expenses

8,643

9,270

Interest expenses on deposits

6,747

7,276

Interest expenses on call money and bills sold

88

269

Interest on payables under repurchase agreements

312

348

Interest expenses on borrowed money

88

88

1,407

1,287

8,083

9,089

Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses

485

126

18,801

20,914409

181

Other ordinary expenses
Provision of reserve for possible loan losses

167

38

Other ordinary expenses242

142

9,595

10,690

－

16－

1647

57

Ordinary Profit
Extraordinary Gains
Other extraordinary gains
Extraordinary Losses
Losses on disposal of fixed assets

20

5Impairment losses

27－－52

Income Before Income Taxes

9,547

10,648

Income Taxes—Current

3,116

3,159

Income Taxes—Deferred(177)75

Total Income Taxes

2,939

3,235

Profit

6,608

7,413

Other extraordinary losses

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

250

331

6,357

7,082

(2) Consolidated Statements of Comprehensive Income(Millions of yen)
For the year ended
March 31, 2019
Profit

For the year ended
March 31, 2020

6,608

7,413

(2,063)(14,274)

(174)

703

Other Comprehensive Income
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

(6)

76

Total other comprehensive income(2,243)(13,494)

Comprehensive Income

4,364(6,080)4,116(6,434)248

353(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 March 31, 2020)(Millions of yen)
Balance sheet
amountFair value exceeding balance sheet amountForeign bonds
Subtotal
Fair value not exceeding balance sheet amountForeign bonds
Subtotal
Total

Fair value

Difference－－－－－－

5,417
5,417
5,417

4,996
4,996
4,996

(420)
(420)
(420)

ii) Available-for-sale securities (As of March 31, 2020)(Millions of yen)
Balance sheet
amountAcquisitioncost

Difference

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

93,27237,94919,33035,992
177,243
172,332
4,910
270,515

88,71233,895
19,14935,667
171,392
168,348
3,044
260,104

4,559
4,053
180
325
5,851
3,984
1,866
10,41043,19023,0599,273
10,858388,184
372,942
15,242
431,375
701,890

43,26323,074
9,292
10,896404,331
389,083
15,248447,595
707,700

(73)
(15)
(19)
(37)
(16,147)(16,140)(6)(16,147)(5,809)Balance sheet amount not exceeding acquisition cost
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
Other securities
Subtotal
Totaliii) Available-for-sale securities sold during the year (For the year ended March 31, 2020)(Millions of yen)Amount of sales
7,380
6,582－797
26,43826,43833,818

Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
Total

Total gains on sales

Total losses on sales
137137－－6969206(2)
－－
(2)
(123)
(123)
(125)

(2) Fair value information on money held in trust
Other money held in trust (As of March 31, 2020)(Millions of yen)

Balance sheet
amountOther money held in trust

23,107

Acquisition
cost

Difference

23,112(5)

Balance sheet amountexceeding acquisition cost

Balance sheet amount notexceeding acquisition cost－(5)

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 March 31, 2019 As of March 31, 2020
(A)(B)
Assets:Cash and due from banks
CashDue from banks
Monetary claims purchased
Money held in trust
Securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Japanese stocks
Other securities
Loans
Loans on deed
Overdrafts
Foreign exchanges
Due from foreign banks
Other assets
Domestic exchange settlement account, debit
Prepaid expenses
Accrued income
Derivatives
Cash collateral paid for financial instruments
Accounts receivable
OthersTangible fixed assets
Buildings
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Deferred tax assets
Reserve for possible loan losses
Total Assets

343,063－
343,063
4,916
21,937
696,468
64,126
20,04049,9942,050
560,256
1,744,103
1,725,791
18,3128,471
8,471
35,443
1,349
200
4,189
4,084
18,148
5,005
2,464
1,092
575
516
5,200
5,195
4
1,133
(903)
2,860,925

5

310,724
0
310,724
6,006
23,107703,352
61,00828,603
46,8502,050
564,838
1,979,126
1,961,731
17,394
3,019
3,019
41,823
1,032
310
3,791
6,376
23,684
4,053
2,573
1,024
533
491
5,225
5,221
3
6,909(846)
3,079,472

Change(B-A)(32,339)+0(32,339)+1,090+1,169+6,884(3,118)+8,563(3,143)－+4,582+235,022+235,939(917)(5,452)(5,452)+6,380(317)+109(398)+2,291+5,535(951)
+109
(67)
(41)
(25)
+25+25(0)+5,775+57+218,546

As of March 31, 2019 As of March 31, 2020
(A)
(B)
Liabilities:
Deposits
Ordinary deposits
Time deposits
Other deposits
Call money
Payables under repurchase agreements
Borrowed money
Borrowed money
Foreign exchanges
Foreign bills sold
Foreign bills payable
Other liabilities
Domestic exchange settlement account, credit
Income taxes payables
Accrued expenses
Initial margins of future markets
Derivatives
Cash collateral received for financial instruments
Asset retirement obligations
OthersReserve for employees' bonuses
Reserve for employees' retirement benefits
Provision for reimbursement of deposits
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserves
Retained earnings
Legal retained earnings
Other retained earnings
Unappropriated 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
Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

6(Millions of yen)
Change(B-A)

2,358,985
782,242
1,147,048
429,694
130,611
20,290210,000
210,000
244
73
170
51,717
959
2,041
6,410
18,98915,379
180
227
7,529
677
994
125
2,773,646

2,481,890
868,926
1,147,175
465,788
176,256
41,093247,923
247,923684
45639
52,743
525
1,608
6,142
18,70722,985
1,040
228
1,504
361
1,068
111
3,002,133+122,905+86,683+127+36,094+45,645+20,802+37,923+37,923
+440
(28)
+469
+1,026
(434)
(432)
(268)
(281)
+7,606+860+1(6,024)
(316)
+74
(13)
+228,487

31,00021,00021,00032,565
1,157
31,407
31,40784,56531,00021,00021,00036,195
1,760
34,43434,43488,195－－－+3,629+602+3,026+3,026+3,6293,974(10,299)(14,274)(1,260)2,713
87,2792,860,925(556)(10,856)
77,3383,079,472+703(13,570)(9,940)+218,546

5. Non-consolidated Statements of Income
For the year ended
March 31, 2019 (A)Ordinary Revenues
Interest income
Interest income on loans
Interest income and dividends on securities
Interest income on call loans
Interest income on deposits with banks
Other interest income
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other operating income
Gains on foreign exchange transactions
Gains on sale of bonds
Gains on derivatives
Other ordinary income
Income from money held in trust, net
OthersOrdinary Expenses
Interest expenses
Interest expenses on deposits
Interest expenses on call money
Interest on payables under repurchase agreements
Interest expenses on borrowed money
Interest expenses on interest rate swaps
Other interest expenses
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other operating expenses
Losses on sale of bonds
General and administrative expenses
Other ordinary expenses
Provision for reserve for possible loan losses
Write-off of loans
OthersOrdinary Profit
Extraordinary Losses
Other extraordinary losses
Income Before Income Taxes
Income Taxes—Current
Income Taxes—Deferred
Total Income Taxes
Net Income

41,70731,926
17,473
14,382
162
7
5,338
338
5,000
3,926
3,599
274
51
515
0
515
33,009
8,643
6,747
88
312
88
1,400
7
7,573
338
7,234
485
485
15,901
405
167
0
238
8,698
－－
8,698
2,828
(155)
2,673
6,025

7

(Millions of yen)
Change(B-A)
45,383+3,67533,950+2,024
18,729+1,255
15,148+766
0(0)
61(0)
10+3
7,487
+2,148
391
+53
7,095
+2,0943,515(411)
3,258(341)
208(66)48(3)429(85)49+49380(134)35,793+2,784
9,269+626
7,276+529
269+180
348+3688(0)1,280(119)6(0)
8,476+903
423+84
8,052+818
126(359)
126(359)
17,782+1,881
138(267)
38(128)－(0)100(138)
9,589+891
49+49
49+49
9,540+841
2,817(11)79+235
2,897+224
6,642+617

For the year ended
March 31, 2020 (B)6. Supplementary Information(1) Interest spread (Non-consolidated)(%)
For the year ended
March 31, 2020

For the year ended
March 31, 2019
①1.16

1.14

Yield on loans

1.06

1.02

Yield on securities

2.01

2.12

Yield on investment

②0.93

0.94

③0.32

0.32

Yield on deposits

0.29

0.30

Yield on external liabilities*

0.05

0.08

Financing cost
Yield on financing

0.69

0.73

Interest spread

Expense ratio
①－③

0.83

0.82

Overall profit margin

①－②

0.23

0.19

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 year endedMarch 31, 2019

Balanceat the end

Averagebalance

0.29

2,481,890

2,420,833

0.30

1,895,172

0.09

2,028,637

1,994,249

0.09

787,210748,361

0.00

875,169

829,687

0.00

1,150,981

1,145,677

0.16

1,151,729

1,162,928

0.16

419,614404,2691.20

453,252

426,584

1.26

Ordinary deposits

168,161

171,583

0.43

182,721

170,826

0.36

Time deposits

251,370

232,6101.77

270,486

255,661

1.86

1,744,103

1,645,025

1.06

1,979,126

1,829,904

1.02

1,690,381

1,579,832

0.98

1,934,875

1,780,6970.95

53,721

65,192

2.83

44,25049,2073.45

Deposits
Yen deposits
Ordinary deposits
Time deposits
Foreign currency deposits

Loans
Mortgage loans
OthersBalanceat the end

Averagebalance

2,358,985

2,299,441

1,939,370

For the year ended
March 31, 2020
Yield

8Yield(3) Balance of time deposits by remaining period (Non-consolidated)(Millions of yen)
As of March 31, 2019

As of March 31, 2020

Remaining period

Yen

Foreigncurrency

Total

Yen

Foreigncurrency

Total

Less than 3 months

204,772

139,685

344,458

198,844

155,682354,5273 months or more, less than 6 months

373,942

55,808429,750

389,579

70,896

460,475

6 months or more, less than 1 year

367,676

41,540409,216

396,653

36,081

432,734

1 year or more, less than 2 years

56,542

10,83367,37533,741

5,420

39,161

2 years or more, less than 3 years

12,072

3,489

15,561

13,702

2,398

16,101

3 years or more

49,516

14

49,53028,757

7

28,765

1,064,522

251,370

1,315,893

1,061,278

270,486

1,331,765

Total

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

(4) Balance of securities by rating (Non-consolidated)(Millions of yen, %)As of March 31, 2019
Ratings

Balance

As of March 31, 2020

Composition

BalanceComposition

AAA296,69142.6

308,155

43.8

AA77,321

11.1

67,4069.6

A

288,02841.4

277,360

39.4

BBB

24,401

3.5

28,987

4.1

Unrated10,025

1.4

21,4433.0

Total

696,468

100.0

703,352

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 andFitch Ratings.
2. The unrated items on the above table include ¥4,152 million of investments in unrated investment trusts, ¥2,050 million ofinvestments in shares of a subsidiary, ¥5,246 million of investments in Japanese local government bonds, and ¥9,993 million ofinvestments in foreign securities.

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

Category

As of March 31, 2019

As of March 31, 2020

AmountAmountBankrupt and quasi-bankrupt loans

596483Doubtful loans

807822Sub-standard loans

800814

Normal loans

1,751,032

1,980,703

Total

1,753,237

1,982,8249

(6) General and Administrative Expenses (Non-consolidated)(Millions of yen, %)For the year ended
March 31, 2020

For the year ended
March 31, 2019
Personnel expenses
Non-personnel expenses
Depreciation and amortization
Taxes
Total

Amount4,577
10,2001,299
1,123
15,901

Composition
28.8
64.1
8.2
7.1
100.0

Amount4,762
11,8371,600
1,183
17,782Composition
26.7
66.5
9.0
6.6
100.0

(7) Number of Executives and Employees (Non-consolidated)
As of March 31, 2019
Executive management
DirectorsAudit & supervisory board members
Employees

954498(Persons)
As of March 31, 2020
954520Notes:1.The number of directors include one outside director and the number of audit & supervisory board members
include three outside audit & supervisory board members.
2.The number of employees exclude temporary employees and subcontracted employees seconded to Sony Bank.

10(8) Consolidated Capital Adequacy Ratio (Domestic Standard)(Millions of yen, %)As of March 31, 2020Core 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

85,813

Capital and capital surplus

52,000Retained earnings

37,136

Cash dividends to be paid (－)(3,323)

Accumulated other comprehensive income included in core capital(53)

Remeasurements of defined benefit plans(53)

Eligible capital instruments included in core capital: instruments and reserves

5,679

Non-controlling interests included in core capital subject to transitional arrangements900Core capital: instruments and reserves(A)

92,339Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)

4,808

Other intangible assets excluding goodwill and mortgage servicing rights

4,808

Shortfall of eligible reserves to expected losses

967Core capital: regulatory adjustments

(B)

5,775

(C)

86,564

CapitalCapital((A) - (B))

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

585,808

Total amount included in risk-weighted assets subject to transitional arrangements(10,090)

Exposure to other financial institutions(10,090)

Total amount of operational risk equivalent / 8%

52,569Adjustment to credit risk-weighted assets

339,206

Total amount of risk-weighted assets(D)

977,584((C) / (D))

8.85%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of March 31, 2020
Consolidated total capital requirements (Domestic standard) (Total risk-weighted assets by 4%)1139,103

(9) Non-consolidated Capital Adequacy Ratio (Domestic Standard)(Millions of yen, %)As of March 31, 2020Core 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

84,871

Capital and capital surplus

52,000Retained earnings

36,195

Cash dividends to be paid (－)(3,323)

Eligible capital instruments included in core capital: instruments and reserves

5,679Core capital: instruments and reserves(A)

90,550Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)

3,625

Other intangible assets excluding goodwill and mortgage servicing rights

3,625

Shortfall of eligible reserves to expected losses

967Core capital: regulatory adjustments

(B)

4,592

(C)

85,958

CapitalCapital((A) - (B))

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

587,658

Total amount included in risk-weighted assets subject to transitional arrangements(10,090)

Exposure to other financial institutions(10,090)

Total amount of operational risk equivalent / 8%45,513Adjustment to credit risk-weighted assets

337,971

Total amount of risk-weighted assets(D)

971,142((C) / (D))

8.85%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of March 31, 2020
Non-consolidated total capital requirements (Domestic standard) (Total risk-weighted assets by 4%)1238,845