May 15, 2019Sony Financial Holdings Inc.

Summary Information on Sony Bank’s Financial Results
for the Year Ended March 31, 2019
<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 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
Buildings
Leased assets
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, 2019287,752
5,378
21,000672,244
1,596,376
9,346
52,372
1,709
658
0
1,051
5,652
5,637
14
138
(806)
2,651,162

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

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

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

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

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

2. Consolidated Statements of Income and Consolidated Statements ofComprehensive Income(1) Consolidated Statements of Income(Millions of yen)
For the year ended
March 31, 2018

For the year ended
March 31, 2019

Ordinary Revenues

39,93346,018Interest income

28,34431,926

Interest income on loans

17,064

17,473

Interest income and dividends on securities

11,204

14,382

Interest income on call loans and bills bought

2

1Interest income on deposits with banks

63

62

Other interest income

97Fees and commissions

6,961

9,650

Other operating income

3,823

3,926

Other ordinary income

804

515

Reversal of reserve for possible loan losses

96－

Others708

515

Ordinary Expenses

32,75236,423

Interest expenses

7,731

8,643

5,322

6,747

Interest expenses on deposits
Interest expenses on call money and bills sold

(73)

88

Interest expenses on payables under repurchase agreements

－

312

113

88

2,368

1,407

6,685

8,083

Interest expenses on borrowed money
Other interest expenses
Fees and commissions
Other operating expenses
General and administrative expenses

109

485

18,08418,801Other ordinary expenses

141

409

－

167

141

242

7,180

9,595

92

47

Losses on disposal of fixed assets

92

20

Impairment losses－

27

Income Before Income Taxes

7,088

9,547

Income Taxes—Current

2,225

3,116

Income Taxes—Deferred

(46)

(177)

Total Income Taxes

2,179

2,939

Profit

4,909

6,608

Provision of reserve for possible loan losses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses

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

186

250

4,722

6,357

(2) Consolidated Statements of Comprehensive Income(Millions of yen)
For the year ended
March 31, 2018
Profit

For the year ended
March 31, 2019

4,909

6,608

1,260

(2,063)

251

(174)

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

7(6)

Total other comprehensive income

1,519(2,243)Comprehensive Income

6,429

4,364

6,242

4,116

187

248

(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) Available-for-sale securities (As of March 31, 2019)(Millions of yen)
Balance sheet
amountAcquisition cost

Difference

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

128,667
62,126
20,04046,500233,113226,698
6,414
361,780

122,51056,922
19,68945,899228,207
224,196
4,011
350,718

6,156
5,203
351
601
4,905
2,502
2,403
11,601

5,494
2,000
－
3,493
332,059
328,8703,189
337,553
699,334

5,496
2,001
－
3,495
333,742
330,552
3,189
339,238
689,957

(2)
(0)
－
(1)
(1,682)(1,682)－(1,684)
9,376

Balance sheet amount not exceeding acquisition cost
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
Other securities
SubtotalTotalii) Available-for-sale securities sold during the year (For the year ended March 31, 2019)
Sales
60,90630,232
14,127
16,545
6,157
6,157
67,063

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

Gains on sales
202
202
－
－
58
58
261

(Millions of yen)
Losses on sales
(475)
(104)
(157)
(212)
－
－
(475)

(2) Fair value information on money held in trust
Other money held in trust (As of March 31, 2019)(Millions of yen)

Balance sheet
amountOther money held in trust

21,937

Acquisition
cost

Difference

21,943(6)

Balance sheet amountexceeding acquisition cost

Balance sheet amount notexceeding acquisition cost－

(6)

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 ofMarch 31, 2018 (A)As ofMarch 31, 2019 (B)287,332
287,332
5,378
21,000674,285
96,87236,001
65,3662,050
473,993
1,596,376
1,577,480
18,8959,346
9,346
37,103
438
149
3,687
7,320
18,559
4,599
2,349
1,204
620
584
3,808
3,803
5
－
(806)
2,635,028

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

Assets:Cash and due from banks
Due 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

5

Change(B-A)+55,731+55,731(461)+937+22,182(32,746)(15,961)(15,372)－+86,262+147,727+148,310
(583)
(874)
(874)
(1,660)
+911
+50
+502
(3,235)
(411)
+406
+114
(112)
(44)
(67)
+1,391+1,392(0)+1,133(96)+225,896

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
Deferred tax liabilities
Total Liabilities
Net Assets:
Common stock
Capital surplus
Capital reserves
Retained earnings
Legal retained eanings
Other retained earnings
Unappropriated retained earnings
Total shareholders' equity
Net unrealized gains (losses) on available-for-sale securities, netof 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

As of
March 31, 2018 (A)As ofMarch 31, 2019 (B)(Millions of yen)
Change(B-A)

2,219,325
672,877
1,134,731
411,716
96,000－180,000
180,000
228
147
81
52,033
－
1,588
5,255
20,205
16,349
590
226
7,817
687
933
81
9
2,549,299

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+139,659+109,365+12,316+17,978+34,611+20,290+30,000+30,000
+16
(73)
+89
(316)
+959
+453
+1,155(1,216)
(970)
(410)
+1
(287)
(9)
+60
+43
(9)
+224,347

31,00021,00021,00028,778709
28,06828,06880,77831,00021,00021,00032,565
1,157
31,407
31,40784,565－－－+3,787+447+3,339+3,339+3,787

6,037

3,974

(2,063)(1,086)
4,950
85,7292,635,028(1,260)2,713
87,2792,860,925(174)(2,237)+1,549+225,896

5. Non-consolidated Statements of Income
For the year ended
March 31, 2018 (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 redemption of bonds
Gains on derivatives
Other ordinary income
Reversal of reserve for possible loan losses
Income from money held in trust, net
OthersOrdinary Expenses
Interest expenses
Interest expenses on deposits
Interest expenses on call money
Interest expenses 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
OthersGeneral and administrative expenses
Other ordinary expenses
Provision of reserve for possible loan losses
Write-off of loans
OthersOrdinary Profit
Extraordinary Losses
Losses on sale or disposal of fixed assets
Income Before Income Taxes
Income Taxes—Current
Income Taxes—Deferred
Total Income Taxes
Net Income

36,27028,344
17,064
11,204
2
63
9
3,298
267
3,030
3,823
3,456
334
0
32
804
96
1
706
29,712
7,730
5,322
(73)
－
113
2,360
8
6,238
265
5,972
109
68
40
15,515
118
－
0
118
6,557
74
74
6,482
2,033
(25)
2,007
4,474

7

(Millions of yen)
Change(B-A)
41,707+5,43731,926+3,582
17,473+408
14,382+3,177
1
(1)
62
(0)
7
(2)
5,338
+2,040
338
+70
5,000
+1,969
3,926
+103
3,599
+143
274
(59)
－
(0)
51
+19
515
(288)
－
(96)
0
(1)
515
(191)
33,009+3,296
8,643
+912
6,747
+1,424
88
+161
312
+312
88
(24)
1,400
(960)
7
(1)
7,573
+1,334
338
+72
7,234
+1,261
485
+376
485
+416
－
(40)
15,901
+386
405
+286
167
+167
0
(0)
238
+119
8,698
+2,140
－
(74)
－
(74)
8,698
+2,215
2,828
+795
(155)
(129)
2,673
+665
6,025
+1,550For the year ended
March 31, 2019 (B)6. Supplementary Information(1) Interest spread (Non-consolidated)(%)
For the year ended
March 31, 2019

For the year ended
March 31, 2018
①

1.11

1.16

Yield on loans

1.09

1.06

Yield on securities

1.68

2.01

Yield on investment

②

0.95

0.93

③

0.31

0.32

Yield on deposits

0.24

0.29

Yield on external liabilities*

0.01

0.05

Financing cost
Yield on financing

0.71

0.69

Interest spread

Expense ratio
①－③

0.80

0.83

Overall profit margin

①－②

0.16

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 year ended
March 31, 2018

Balanceat the end

Averagebalance

0.24

2,358,985

2,299,441

0.29

1,801,853

0.11

1,939,370

1,895,172

0.09

675,854

667,160

0.00

787,210748,3610.00

1,138,135

1,134,084

0.17

1,150,981

1,145,677

0.16

404,614364,889

0.91

419,614404,269

1.20

Ordinary deposits

187,714

174,4830.28

168,161

171,583

0.43

Time deposits

216,842

190,356

1.48

251,370

232,6101.77

1,596,376

1,560,979

1.09

1,744,103

1,645,025

1.06

1,525,582

1,478,964

1.02

1,690,381

1,579,832

0.98

70,79382,0152.36

53,721

65,192

2.83

Deposits
Yen deposits
Ordinary deposits
Time deposits
Foreign currency deposits

Loans
Mortgage loans
OthersBalanceat the end

Averagebalance

2,219,325

2,166,743

1,814,711

For the year ended
March 31, 2019
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.

8(3) Balance of Time Deposits by Remaining Period (Non-consolidated)(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Remaining period

Yen

Foreigncurrency

Total

Yen

Foreigncurrency

Total

Less than 3 months

199,082

130,243

329,325

204,772

139,685

344,458

3 months or more, less than 6 months

384,468

49,950434,419

373,942

55,808429,750

6 months or more, less than 1 year

373,708

28,026

401,735

367,676

41,540409,216

1 year or more, less than 2 years

33,291

6,272

39,56356,542

10,83367,3752 years or more, less than 3 years

17,0152,349

19,365

12,072

3,489

15,561

3 years or more

49,453049,45449,516

14

49,5301,057,020

216,842

1,273,863

1,064,522

251,370

1,315,893

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, 2018
Ratings

Balance

As of March 31, 2019

Composition

BalanceComposition

AAA

232,404

34.4

296,69142.6

AA

109,807

16.3

77,321

11.1

A

306,81345.5

288,028

41.4

BBB

18,1502.7

24,401

3.5

Unrated

7,109

1.1

10,025

1.4

Total

674,285100.0

696,468

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 Fitch
Ratings.
2. The unrated items on the above table include ￥4,687 million of investments in unrated investment trusts, ￥2,050 million of
investments in shares of a subsidiary and ￥3,286 million of investments in foreign bonds.

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

Category

As of March 31, 2018

As of March 31, 2019

AmountAmountBankrupt and quasi-bankrupt loans

472

596

Doubtful loans

685

807

Sub-standard loans

842

800

Normal loans

1,604,392

1,751,032

Total

1,606,393

1,753,237

9

(6) General and Administrative Expenses (Non-consolidated)(Millions of yen, %)For the year ended
March 31, 2019

For the year ended
March 31, 2018
Personnel expenses
Non-personnel expenses
Depreciation and amortization
Taxes
Total

Amount
4,492
9,924
1,254
1,098
15,515Composition
28.9
64.0
8.1
7.1
100.0

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

Composition
28.8
64.1
8.2
7.1
100.0

(7) Number of Executives and Employees (Non-consolidated)
As of March 31, 2018
Executive management
Directors
Audit & Supervisory Board Members
Employees

9
5
4
487

(Persons)
As of March 31, 2019
9
5
4
498

Notes:1.The number of directors include one (1) outside director and the number of audit & supervisory board members
include two (2) 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, %)Amounts excluded under
As of March 31, 2019transitional 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

82,054

Capital and capital surplus

52,000Retained earnings

33,067

Cash dividends to be paid (－)(3,013)

Accumulated other comprehensive income included in core capital(106)

Remeasurements of defined benefit plans(106)

Eligible capital instruments included in core capital: instruments and reserves

7,683

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

948Core capital: instruments and reserves(A)

90,579Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)
Other intangible assets excluding goodwill and mortgage servicing rights
Shortfall of eligible reserves to expected losses
Core capital: regulatory adjustments

4,789

－

4,789

－

929

－

(B)

5,719

(C)

84,860CapitalCapital((A) - (B))

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

558,824

Total amount included in risk-weighted assets subject to transitional arrangements(10,417)

Exposure to other financial institutions(10,417)

Total amount of operational risk equivalent / 8%

47,798Adjustment to credit risk-weighted assets

284,017

Total amount of risk-weighted assets(D)

890,640((C) / (D))

9.52%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of March 31, 2019
Consolidated total capital requirements (Domestic standard) (Total Risk-Weighted Assets by 4%)

1135,625

(9) Non-consolidated Capital Adequacy Ratio (Domestic Standard)(Millions of yen, %)Amounts excluded under
As of March 31, 2019transitional 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

81,552

Capital and capital surplus

52,000Retained earnings

32,565

Cash dividends to be paid (－)(3,013)

Eligible capital instruments included in core capital: instruments and reserves

7,683Core capital: instruments and reserves(A)

89,235

Core capital: regulatory adjustments
Total amount of intangible assets (excluding those relating to mortgage servicing rights)
Other intangible assets excluding goodwill and mortgage servicing rights
Shortfall of eligible reserves to expected losses
Core capital: regulatory adjustments

3,607

－

3,607

－

929

－

(B)

4,537

(C)

84,698

CapitalCapital((A) - (B))

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

559,634

Total amount included in risk-weighted assets subject to transitional arrangements(10,417)

Exposure to other financial institutions(10,417)

Total amount of operational risk equivalent / 8%

41,557

Adjustment to credit risk-weighted assets

282,823

Total amount of risk-weighted assets(D)

884,014((C) / (D))

9.58%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of March 31, 2019Non-consolidated total capital requirements (Domestic standard) (Total Risk-Weighted Assets by 4%)

1235,360