November 12, 2018
Sony Financial Holdings Inc.

Summary Information on Sony Bank’s Financial Results
for the Six Months Ended September 30, 2018
<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, 2018
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, 2018287,752
5,378
21,000672,244
1,596,376
9,346
52,372
1,709
5,652
138
(806)
2,651,162

332,884
3,271
21,000730,556
1,638,373
9,968
52,048
1,686
6,000
313
(877)
2,795,224

2,219,324
96,000－180,000
228
66,071769
1,243
81
2,563,718

2,308,671
121,280
23,247
190,000
112
62,306435
1,274
99
2,707,428

31,00021,00028,94880,9486,037(1,086)
(103)
4,847
1,648
87,444
2,651,162

31,00021,00029,80781,807
5,165
(850)
(96)
4,219
1,770
87,796
2,795,224

2. Consolidated Statements of Income and Consolidated Statements ofComprehensive Income(1) Consolidated Statements of Income
For the six months
ended September 30, 2017

(Millions of yen)
For the six months
ended September 30, 2018

Ordinary Revenues

19,81922,038Interest income

14,005

15,433

Interest income on loans

8,457

8,627

Interest income and dividends on securities

5,510

6,771

Fees and commissions

3,138

4,169

Other operating income

2,104

2,133

570

301

Ordinary Expenses

Other ordinary income

16,107

17,371

Interest expenses

3,923

4,032

2,583

3,141

Fees and commissions

Interest expenses on deposits

3,143

3,925

Other operating expenses

49106

8,944

9,100

46

206

3,712

4,666

81

15

General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses

8115

Income Before Income Taxes

Losses on disposal of fixed assets

3,630

4,651

Income Taxes—Current

1,007

1,331

Income Taxes—Deferred118

101

Total Income Taxes

1,125

1,432

Profit

2,504

3,218

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

79120

2,425

3,097

(2) Consolidated Statements of Comprehensive Income(Millions of yen)

Profit

For the six months
ended September 30, 2017

For the six months
ended September 30, 2018

2,504

3,218

1,071(871)

127

236

77

1,205(627)

3,710

2,590

3,630

2,46880

122

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
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, 2018)(Millions of yen)
Balance sheet
amountFair value

Difference

Fair value exceeding balance sheet amountJapanese corporate bonds
Subtotal

187
187

187
187

00－－187－－187－－0

Fair value not exceeding balance sheet amountJapanese corporate bonds
Subtotal
Totalii) Available-for-sale securities (As of September 30, 2018)(Millions of yen)
Balance sheet
amountAcquisition costDifference

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

140,254
46,60934,321
59,323
225,480
220,080
5,399
365,734

134,483
42,57633,58758,319220,787
218,501
2,286
355,271

5,770
4,033
733
1,003
4,692
1,578
3,113
10,462

32,92629,130－3,796
334,949
331,677
3,271
367,876
733,610

33,20929,409－3,800
337,336
334,065
3,271
370,546
725,818

(282)
(278)
－
(3)
(2,387)(2,387)(0)(2,670)
7,792

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, 2018)(Millions of yen)

Balance sheet
amountOther money held in trust

21,000Acquisition
cost

Difference

21,000－

Balance sheet amountexceeding acquisition cost

Balance sheet amount notexceeding acquisition cost－－

Note: “Difference” consists of “Of which, balance sheet amount exceeds acquisition cost” and “Of which, balance sheet amount does not exceed
acquisition cost.”

44. Non-consolidated Balance Sheets(Millions of yen)
As of
September 30, 2017
(A)

As of
September 30, 2018
(B)

As of
March 31, 2018
(C)

243,555

331,504+87,949

Change(B-A)

Change(B-C)

Assets:Cash and due from banks

287,332+44,172

Monetary claims purchased

7,506

3,271

(4,235)

5,378(2,106)

Money held in trust

21,00021,000－21,000－

Securities

690,098

732,577+42,478

674,285+58,291

1,559,3241,638,373+79,048

1,596,376+41,996

Foreign exchanges

10,446

9,968(478)

9,346

+622

Other assets

Loans

44,12437,293(6,830)37,103+189

Tangible fixed assets

491

1,118+627

1,204(85)Intangible fixed assets

3,156

4,220

+1,064

3,808

+411

－

163

+163

－+163

Deferred tax assets
Reserve for possible loan losses

(887)

(877)

+9(806)(70)

2,578,815

2,778,613+199,798

2,635,028+143,584

Deposits

2,165,212

2,308,972+143,760

2,219,325+89,647

Call money

117,000

121,280+4,28096,000+25,280－

23,247+23,247－+23,247

Borrowed money

160,000

190,000+30,000

180,000+10,000

Foreign exchanges

336

112(223)

228

(116)

Other liabilities

Total Assets
Liabilities:

Payables under repurchase agreements

51,69347,789(3,903)52,033(4,243)

Reserve for employees' bonuses

352

351

(1)

687

(335)

Reserve for employees' retirement benefits

878

966

+87

933

+32

Provision for reimbursement of deposits

65

99+34

81+18

Deferred tax liabilities
Total Liabilities

16－(16)9(9)2,495,555

2,692,820+197,264

2,549,299+143,521

31,00031,000－31,000－Net Assets:
Common stock
Capital surplus

21,00021,000－21,000－Retained earnings

26,62329,477+2,854

28,778+698

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

78,623

81,477+2,85480,778

+698

5,847

5,165

(681)

6,037(871)(1,210)

(850)

+360

(1,086)+236

Total valuation and translation adjustments
Total Net Assets
Total Liabilities and Net Assets

4,636

4,315

(321)

4,950(635)83,25985,793+2,53385,729+63

2,578,815

2,778,613+199,798

2,635,028+143,58455. Non-consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2017
(A)

Six months ended
September 30, 2018
(B)

(Reference)
For the year ended
March 31, 2018

Ordinary Revenues

18,044

19,911+1,866

Interest income

14,005

15,433+1,42828,344

Interest income on loans

8,457

8,627+169

17,064

Change(B-A)

36,270Interest income and dividends on securities

5,5106,771+1,261

11,204

Fees and commissions

1,363

2,042+678

3,298

Other operating income

2,104

2,133+28

3,823

Gains on foreign exchange transactions

1,846

1,861+15

3,456

570

301(268)804

Ordinary Expenses

14,62015,668+1,04829,712

Interest expenses

3,922

4,031

+109

7,730

Interest expenses on deposits

2,583

3,141+557

5,322

Fees and commissions

2,925

3,665+739

6,238

Other operating expenses

48

106+57

109

7,676

7,659

(17)

15,515

Other ordinary income

General and administrative expenses
Other ordinary expenses
Ordinary Profit

46205+159

118

3,423

4,242+818

6,557
7466－(66)

66－(66)74

3,357

4,242+885

6,482

Income Taxes—Current

918

1,198+280

2,033

Income Taxes—Deferred

119

107

(12)

(25)

Extraordinary Losses
Losses on disposal of fixed assets
Income Before Income Taxes

Total Income Taxes

1,037

1,305+267

2,007

Net Income

2,319

2,937+617

4,474(Reference) Non-consolidated Statements of Income for the three months ended September 30, 2018
(Millions of yen)Three months ended
September 30, 2017
(A)

Three months endedSeptember 30, 2018(B)Ordinary Revenues

9,199

10,188+988

Interest income

7,134

7,938+803

Interest income on loans

4,264

4,318+54

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

2,851
696
892

3,601
1,065
1,081+750+369+188

Gains on foreign exchange transactions

860

866+6

Other ordinary income

Change(B-A)

476

103(373)

Ordinary Expenses

7,328

7,978+649

Interest expenses

1,956

2,115+158

Interest expenses on deposits

1,316

1,629+312

Fees and commissions

1,504

1,815+310

Other operating expenses

33104+71

3,824

3,882+58

859+501,870

2,209+339

66－(66)66－(66)1,804

2,209+405

General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses
Losses on disposal of fixed assets
Income Before Income Taxes
Income Taxes —Current

625

782+156

Income Taxes —Deferred(70)

(106)

(35)

554

676+1211,249

1,533+283

Total Income Taxes
Net Income6

6. Supplementary Information(1) Interest spread (Non-consolidated)(%)
For the six months ended
September 30, 2018

For the six months ended
September 30, 2017
①1.12

1.13

Yield on loans

1.08

1.06

Yield on securities

1.66

1.88

Yield on investment

②0.97

0.89

③0.32

0.30

Yield on deposits

0.24

0.27

Yield on external liabilities*

0.01

0.02

Financing cost
Yield on financing

0.71

0.67

Interest spread

Expense ratio
①－③

0.79

0.82

Overall profit margin

①－②

0.15

0.24

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, 2017

Balanceat the end

Averagebalance

0.24

2,308,972

2,263,662

0.27

1,782,722

0.11

1,909,841

1,862,428

0.09

666,432

649,6420.00

759,136

722,1310.00

1,133,665

1,132,600

0.18

1,149,708

1,139,304

0.16

Foreign currency deposits

364,669

353,9620.86

399,131401,233

1.10

Ordinary deposits

172,280

174,2760.25

166,615

176,548

0.38

Time deposits

192,334

179,637

1.46

232,434

224,6121.66

1,559,324

1,551,008

1.08

1,638,373

1,618,089

1.06

1,477,932

1,465,413

1.01

1,574,800

1,548,816

0.98

81,39285,595

2.27

63,572

69,273

2.71

Deposits
Yen deposits
Ordinary deposits
Time deposits

Loans
Mortgage loans
OthersBalanceat the end

Averagebalance

2,165,212

2,136,685

1,800,542

For the six months ended
September 30, 2018

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, 2017

As of September 30, 2018

Remaining period

Yen

Foreigncurrency

Total

Yen

Foreigncurrency

Total

Less than 3 months

281,278

115,813397,092

286,976

131,620

418,596

3 months or more, less than 6 months

424,506

39,501

464,007424,682

46,842471,5246 months or more, less than 1 year

245,81729,894

275,711

239,516

41,798281,314

1 year or more, less than 2 years

36,608

4,268

40,87645,857

9,701

55,5592 years or more, less than 3 years

14,1882,853

17,04117,963

2,460

20,423

3 years or more

52,488352,491

50,6661150,677

192,334 1,247,222

1,065,662

Total

1,054,888

232,434 1,298,097

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, 2017
Ratings

Balance

As of September 30, 2018

Composition

BalanceComposition

AAA

226,24332.8

300,292

41.0

AA

116,12116.8

94,95913.0

A314,10145.5

315,394

43.0

BBB

26,587

3.9

14,4792.0

Unrated

7,044

1.0

7,4501.0Total

690,098

100.0

732,577

100.0

Notes: 1. Sony bank uses the Basel III standardized method and classifies its securities based on rating by five (5) 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 ￥5,399 million of investments in unrated investment trusts and ￥2,050 million ofinvestments in shares of a subsidiary.

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

CategoryAs of September 30, 2017

As of September 30, 2018

AmountAmountBankrupt and quasi-bankrupt loans

580

531

Doubtful loans

774

681

Sub-standard loans

997756

Normal loans

1,568,055

1,646,982

Total

1,570,407

1,648,951

8

(6) General and Administrative Expenses (Non-consolidated)
For the six months ended
September 30, 2017
Personnel expenses
Non-personnel expenses
Depreciation and amortization
Taxes
Total

Amount
2,252
4,898
626
525
7,676

%
29.3
63.8
8.2
6.9
100.0

(Millions of yen, %)For the six months ended
September 30, 2018
Amount
2,306
4,815
655
537
7,659%
30.1
62.9
8.6
7.0
100.0(7) Number of Executives and Employees (Non-consolidated)
As of September 30, 2017
Executive management
Directors
Audit & Supervisory Board Members
Employees

954496(Persons)
As of September 30, 2018
954500Notes:1.The number of directors include one outside director and the number of audit & supervisory board members
include two non-executive 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 of September 30,
2018

Amounts excluded undertransitional arrangements

As of June 30,
2018

Amounts excluded undertransitional arrangementsCore 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

81,80780,185

Of which, capital and capital surplus

52,00052,000Of which, retained earnings

29,80728,185

(77)

(79)

(77)

(79)

Eligible capital instruments included in core capital: instruments and reserves

8,680

9,184

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

1,062

1,021

91,47290,311

Accumulated other comprehensive income included in core capital
Of which, remeasurements of defined benefit plans(A)Core capital: instruments and reserves
Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)

3,330

832

3,047761

Of which, other intangible assets excluding goodwill and mortgage servicing rights

3,330

832

3,047

761

839－822－

Shortfall of eligible reserves to expected losses
Core capital: regulatory adjustments

(B)

4,170

3,869

(C)

87,30286,441

506,854

497,406(10,057)(9,904)

CapitalCapital((A) - (B))

Risk-weighted assets
Total amount of credit risk-weighted assets
Of which, total amount included in risk-weighted assets subject to transitional arrangements
Of which, intangible assets (excluding goodwill and mortgage servicing rights)
Of which, exposure to other financial institutions

832

761

(10,889)(10,666)

Total amount of operational risk equivalent / 8%45,83944,785Adjustment to credit risk-weighted assets

286,626

290,547(D)

839,320

832,739((C) / (D))

10.40%

10.38%

Total amount of risk-weighted assets
Capital adequacy ratio
Capital adequacy ratio(Millions of yen)

Consolidated total capital requirements (Domestic standard) (Total Risk-Weighted Assets by 4%)10

As of September 30, 2018

As of June 30, 201833,57233,309(9) Non-consolidated Capital Adequacy Ratio (Domestic Standard)(Millions of yen, %)As of September 30,
2018

Amounts excluded undertransitional arrangements

As of June 30,
2018

Amounts excluded undertransitional arrangementsCore 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

81,477

79,943

Of which, capital and capital surplus

52,00052,000Of which, retained earnings

29,477

27,943

Eligible capital instruments included in core capital: instruments and reserves
Core capital: instruments and reserves

(A)

8,680

9,184

90,157

89,127Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)

2,342

585

2,059

514

Of which, other intangible assets excluding goodwill and mortgage servicing rights

2,342

585

2,059

514

839

－822

－

Shortfall of eligible reserves to expected losses
Core capital: regulatory adjustments

(B)

3,182

2,882

(C)

86,97586,245

CapitalCapital((A) - (B))

Risk-weighted assets
Total amount of credit risk-weighted assets
Of which, total amount included in risk-weighted assets subject to transitional arrangements
Of which, intangible assets (excluding goodwill and mortgage servicing rights)
Of which, exposure to other financial institutions

507,754498,577(10,304)(10,151)585

514(10,889)(10,666)

Total amount of operational risk equivalent / 8%

39,94039,244

Adjustment to credit risk-weighted assets

285,430

289,172(D)

833,125

826,995((C) / (D))

10.43%

10.42%

Total amount of risk-weighted assets
Capital adequacy ratio
Capital adequacy ratio(Millions of yen)

Non-consolidated total capital requirements (Domestic standard) (Total Risk-Weighted Assets by 4%)11

As of September 30, 2018

As of June 30, 201833,32533,079