November 13, 2017
Sony Financial Holdings Inc.

Summary Information on Sony Bank’s Financial Results
for the Six Months Ended September 30, 2017
<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.111

1. Consolidated Balance Sheets(Millions of yen)
As of
September 30, 2017

As ofMarch 31, 2017
Assets:Cash and due from banks

180,581244,293

573

7,506

Money held in trust

23,00021,000

Securities

629,254

688,076

1,539,630

1,559,325

Foreign exchanges

7,268

10,446

Other assets

53,22356,858

Tangible fixed assets

710

918

Intangible fixed assets

4,803

4,885

Deferred tax assets

762

129

Reserve for possible loan losses

(971)

(887)

2,438,836

2,592,552

2,109,583

2,161,509

Call money and bills sold

70,000117,000

Borrowed money

103,000

160,000

Foreign exchanges

108336

Other liabilities

71,52067,288

782

431

1,117

1,178

Reserve for directors' retirement benefits

56－

Provision for reimbursement of deposits

6265

Deferred tax liabilities－

16

2,356,231

2,507,826

Common stock

31,00031,000Capital surplus

21,00021,000Retained earnings

25,81526,650Total shareholders' equity

77,81578,650Net unrealized gains (losses) on other securities, net of taxes

4,776

5,847

Net deferred gains (losses) on hedging instruments, net of taxes(1,338)(1,210)Remeasurements of defined benefit plans, net of taxes

(109)

(103)

Total accumulated other comprehensive income

3,328

4,533

Non-controlling interests

1,460

1,541

Total Net Assets

82,60484,7252,438,836

2,592,552

Monetary claims purchased

Loans

Total Assets
Liabilities:
Deposits

Reserve for employees' bonuses
Net defined benefit liability

Total Liabilities
Net Assets:

Total Liabilities and Net Assets

22. Consolidated Statements of Income and Consolidated Statements ofComprehensive Income(1) Consolidated Statements of Income
For the six months
ended September 30, 2016

(Millions of yen)
For the six months
ended September 30, 2017

Ordinary Revenues

18,61019,819Interest income

12,756

14,005(Interest income on loans)

7,785

8,457

(Interest income and dividends on securities)

4,937

5,510

Fees and commissions

3,502

3,138

Other operating income

2,225

2,104

Other ordinary income

125

570

Ordinary Expenses

16,825

16,107

Interest expenses

4,345

3,923

(Interest expenses on deposits)

2,518

2,583

Fees and commissions

2,544

3,143

Other operating expenses

7849

9,712

8,944

General and administrative expenses
Other ordinary expenses

143

46

1,784

3,712

6381

Losses on disposal of fixed assets

5681

Other extraordinary losses

7－Ordinary Profit
Extraordinary Losses

Income Before Income Taxes

1,721

3,630

Income Taxes —Current

412

1,007

Income Taxes —Deferred

129

118

Total Income Taxes

542

1,125

1,178

2,504

33

79

1,144

2,425

ProfitProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent(2) Consolidated Statements of Comprehensive Income(Millions of yen)
For the six months
ended September 30, 2016
Profit

For the six months
ended September 30, 2017

1,178

2,504

Net unrealized gains (losses) on other securities, net of taxes

494

1,071

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

33127

Remeasurements of defined benefit plans, net of taxes

97536

1,205

1,715

3,710

1,680

3,630

3580

Other Comprehensive Income

Total other comprehensive income
Comprehensive Income(Details)
Comprehensive income attributable to parent company
Comprehensive income attributable to non-controlling interests33. Fair Value Information (Consolidated)(1) Fair value information on securitiesi) Held-to-maturity bonds (As of September 30, 2017)(Millions of yen)
Balance sheet
amountFair value

Difference

Held-to-maturity bonds of which fair value exceeds
balance sheet amountJapanese government bonds
Japanese corporate bonds
Subtotal

3,995
211
4,206

4,028
213
4,241

33
135－
－
－
4,206－－－
4,241－－－
35

Held-to-maturity bonds of which fair value does not exceedbalance sheet amountJapanese government bonds
Japanese corporate bonds
Subtotal
Totalii) Available-for-sale securities (As of September 30, 2017)(Millions of yen)
Balance sheet
amountAcquisition cost

Difference

Available-for-sale securities of which balance sheet amountexceeds acquisition cost
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
OthersSubtotal

165,074
63,78934,652
66,633358,150
349,0449,106523,225

157,130
58,216
33,66065,253351,621345,223
6,397
508,751

7,944
5,572
991
1,380
6,529
3,820
2,708
14,47332,47830,075
1,503
899
135,643
132,249
3,394
168,122
691,347

32,93830,5341,504
900
136,148
132,7543,394
169,087
677,838

(459)
(458)
(0)
(0)
(505)
(504)
(0)
(964)
13,509Available-for-sale securities of which balance sheet amountdose not exceed acquisition cost
Bonds
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
OthersForeign bonds
OthersSubtotalTotal(2) Fair value information on monetary trustsi) Other monetary trusts (As of September 30, 2017)(Millions of yen)

Balance sheet
amountOther monetary trusts

21,000Acquisition
cost
21,000Of which,balance sheet amount does
not exceed acquisition cost

Of which,balance sheet amountexceeds acquisition cost

Difference－－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, 2016
(A)

As of
September 30, 2017
(B)

As of
March 31, 2017
(C)

Change(B-A)

Change(B-C)

Assets:Cash and due from banks

80,697

243,555

162,857

177,468

Monetary claims purchased

720

7,506

6,785

573

6,933

Money held in trust

23,00021,000(2,000)23,000(2,000)

Securities

591,024

690,098

99,074

631,296

58,802

Loans

66,086

1,460,692

1,559,324

98,632

1,539,630

19,693Foreign exchanges

5,458

10,446

4,988

7,268

3,177

Other assets

24,611

44,124

19,513

41,7702,353

Tangible fixed assets

596

491

(105)

398

93

Intangible fixed assets

3,089

3,156

66

3,170

(13)

Deferred tax assets

1,208

－

(1,208)

632

(632)

Reserve for possible loan losses(1,091)

(887)

204

(971)

84

2,190,007

2,578,815

388,808

2,424,236

154,579

1,989,611

2,165,212

175,600

2,112,985

52,226－

117,000

117,00070,000

47,000Borrowed money

60,000160,000

100,000

103,000

57,000Foreign exchanges

140336

195

108

227

Other liabilities

61,884

51,693

10,19055,199(3,505)Reserve for employees' bonuses

350

352

1705

(353)

Reserve for employees' retirement benefits

771

878

106

815

63

Reserve for directors' retirement benefits

23－

(23)

27(27)

Provision for reimbursement of deposit

59

65

662

3

Total Assets
Liabilities:
Deposits
Call money－

16

16－

16

2,112,841

2,495,555

382,713

2,342,904

152,651

Common stock

31,00031,000－31,000－Capital surplus

21,00021,000－21,000－Retained earnings

23,837

26,623

2,785

25,893729

Deferred tax liabilities
Total Liabilities
Net Assets:

Total shareholders' equity

75,83778,623

2,785

77,893729

Net unrealized gains (losses) onother securities, net of taxes

3,825

5,847

2,021

4,776

1,071

Net deferred gains (losses) on
hedging instruments, net of taxes(2,497)(1,210)1,287(1,338)127

Total valuation and translation adjustments

1,327

4,636

3,308

3,438

1,198

Total Net Assets
Total Liabilities and Net Assets

77,16583,2596,094

81,332

1,927

2,190,007

2,578,815

388,808

2,424,236

154,57955. Non-consolidated Statements of Income(Millions of yen)
(Reference)
For the year ended
March 31, 2017

Six months ended
September 30, 2016
(A)

Six months ended
September 30, 2017
(B)

Ordinary Revenues

16,92418,044

1,120

35,105Interest income

12,756

14,005

1,248

26,534(Interest income on loans)

7,785

8,457

671

16,066

Change(B-A)(Interest income and dividends on securities)

4,937

5,510

572

10,394

Fees and commissions

1,816

1,363(452)3,465Other operating income

2,225

2,104(120)4,871(Gains on foreign exchange transactions)

2,053

1,846(206)4,431

125570444

234

Ordinary Expenses

15,30014,620(679)30,470Interest expenses

4,345

3,922(422)8,671Other ordinary income(Interest expenses on deposits)

2,518

2,583

64

5,105

Fees and commissions

2,320

2,925

605

5,046

Other operating expenses

78

48(29)

86

8,412

7,676(736)

16,524General and administrative expenses
Other ordinary expenses
Ordinary Profit142

46(96)141

1,623

3,423

1,800

4,634
150

－

66

66

Losses on disposal of fixed assets

－66

66

－

Impairment losses

－－－

150

1,623

3,357

1,733

4,484

Income Taxes -Current

368

918

549

1,307

Income Taxes -Deferred

135

119

(15)

1

Total Income Taxes

503

1,037

534

1,308

1,120

2,319

1,199

3,176

Extraordinary Losses

Income Before Income Taxes

Net Income(Reference) Non-consolidated Statements of Income for the three months ended September 30, 2017
(Millions of yen)Three months ended
September 30, 2016
(A)

Three months ended
September 30, 2017
(B)

Ordinary Revenues

8,513

9,199

685

Interest income

6,435

7,134

698

(Interest income on loans)

3,941

4,264

323

(Interest income and dividends on securities)

2,477

2,851

373

Fees and commissions

919

696

(222)

Other operating income

1,088

892

(196)

(Gains on foreign exchange transactions)

1,064

860

(203)

69476

406

Ordinary Expenses

7,607

7,328

(278)

Interest expenses

2,168

1,956

(211)

(Interest expenses on deposits)

1,279

1,316

36

Fees and commissions

1,236

1,504

268

233

31

4,139

3,824(314)

61

8(52)

9061,870

964－6666

Other ordinary income

Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary Profit
Extraordinary Losses

Change(B-A)

－66

66

Income Before Income Taxes

906

1,804

898

Income Taxes —Current

356

625

269

Income Taxes —Deferred(77)

(70)

6

Total Income Taxes

278

554

275

Net Income627

1,249

622

Losses on disposal of fixed assets

66. Supplementary Information(1) Interest spread (Non-consolidated)(%)
For the six months ended
September 30, 2017

For the six months ended
September 30, 2016①1.22

1.12

Yield on loans

1.11

1.08

Yield on securities

1.69

1.66

Yield on investment

②1.28

0.97

③0.43

0.32

Yield on deposits

0.25

0.24

Yield on external liabilities*

0.44

0.01

Financing cost
Yield on financing

0.86

0.71

Interest spread

Expense ratio
①－③

0.78

0.79

Overall profit margin①－②(0.05)

0.15

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, 2016

Balanceat the endAveragebalance

0.25

2,165,212

2,136,685

0.24

1,607,936

0.14

1,800,542

1,782,722

0.11

529,949

526,182

0.00

666,432

649,6420.00

1,119,538

1,081,507

0.21

1,133,665

1,132,600

0.18

339,908

333,3300.79

364,669

353,962

0.86

Ordinary deposits

180,422

176,6280.16

172,280

174,276

0.25

Time deposits

159,455

156,677

1.51

192,334

179,637

1.46

1,460,692

1,397,321

1.11

1,559,324

151,008

1.08

1,362,923

1,291,158

1.08

1,477,932

1,465,413

1.01

97,768106,163

1.48

81,39285,595

2.27

Deposits
Yen deposits
Ordinary deposits
Time deposits
Foreign currency deposits

Loans
Mortgage loans
OthersBalanceat the end

Averagebalance

1,989,611

1,941,266

1,649,703

For the six months ended
September 30, 2017

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, 2016
Remaining period

Yen

Foreigncurrency

Total

Yen

Foreigncurrency

Total

Less than 3 months

265,852

104,475

370,328

281,278

115,813397,092

3 months or more, less than 6 months

439,372

33,847473,219424,506

39,501

464,007

6 months or more, less than 1 year

232,146

16,884

249,031245,81729,894

275,711

1 year or more, less than 2 years

40,7632,602

43,36636,608

4,268

40,876

2 years or more, less than 3 years

7,606

1,642

9,248

14,1882,853

17,041

3 years or more

62,097

2

62,10052,488352,491

159,455 1,207,295

1,054,888

Total

1,047,839

192,334 1,247,222

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, 2016
Ratings

Balance

As of September 30, 2017

Composition

BalanceCompositionAAA

122,76620.8

226,24332.8

AA

171,78529.1

116,12116.8

A275,11846.5

314,10145.5

BBB

15,348

2.6

26,587

3.9

Unrated

6,005

1.0

7,044

1.0

Total

591,024100.0

690,098

100.0Notes: 1. Sony bank uses the Basel III standardized approach and classifies its securities, based on rating by five (5) rating agencies: Moody's
Investors Service, Standard & Poor's, Rating and Investment Information, Japan Credit Rating Agency and Fitch Ratings.
2. The unrated items on the above table include ￥4,993 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)
As of September 30, 2016
Category

As of September 30, 2017
AmountAmount688

580

Doubtful loans

1,057

774

Sub-standard loans

1,321997

Normal loans

1,463,705

1,568,055

Total

1,466,772

1,570,407

Bankrupt and quasi-bankrupt loans8(6) General and Administrative Expenses (Non-consolidated)
For the six months ended
September 30, 2016
Personnel expenses
Non-personnel expenses
Depreciation and amortization
Taxes
Total

Amount
2,196
5,677
637
538
8,412

%
26.1
67.5
7.5
6.4
100.0

(Millions of yen, %)For the six months ended
September 30, 2017
Amount2,252
4,898626525
7,676%
29.3
63.8
8.2
6.9
100.0(7) Number of Executives and Employees (Non-consolidated)

Executive management
Directors
Statutory auditors
Employees

As of September 30, 2016
1064470(Persons)
As of September 30, 2017954496

Notes:1.The number of directors include one (1) outside director and the number of statutory auditors include two (12outsidestatutory auditors.
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, 2017

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

78,650Of which, Capital and capital surplus

52,000Of which, Retained earnings

26,650

Accumulated other comprehensive income included in core capital(62)

of which: remeasurements of defined benefit plans(62)

Eligible capital instrument subject to transitional arrangement included in Core Capital:
instruments and reserves

10,000Non-controlling interests included in Core Capital subject to transitional arrangements

1,079
(A)

Core capital: instruments and reserves

89,667

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

2,026

1,351

Of which, Other intangible assets other than goodwill and mortgage servicing rights

2,026

1,351

1,070

－

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

(B)

3,097

(C)

86,570CapitalCapital((A) - (B))

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

515,040

Of which, Total amount included in risk-weighted assets subject to transitional arrangements(9,548)

Of which, Intangible assets other than goodwill and mortgage servicing rights

1,351

Of which, Exposures to other financial institutions(10,899)

Total amount of operational risk equivalent / 8%

44,798Adjustment to credit risk-weighted assets

361,768

Total amount of risk-weighted assets(D)

921,608((C) / (D))

9.39%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)AmountConsolidated total capital requirements (Domestic standard) (Total Risk-Weighted Assets by 8%)1036,864

(9) Non-consolidated Capital Adequacy Ratio (Domestic Standrd)(Millions of yen, %)As of
September 30, 2017

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

78,623

Of which, Capital and capital surplus

52,000Of which, Retained earnings

26,623

Eligible capital instrument subject to transitional arrangement included in Core Capital:
instruments and reserves

10,000Core capital: instruments and reserves(A)

88,623

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

1,309

872

Of which, Other intangible assets other than goodwill and mortgage servicing rights

1,309

872

1,070

－

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

(B)

2,379

(C)

86,243

CapitalCapital((A) - (B))

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

516,875

Of which, Total amount included in risk-weighted assets subject to transitional arrangements(10,026)

Of which, Intangible assets other than goodwill and mortgage servicing rights

872

Of which, Exposures to other financial institutions(10,899)

Total amount of operational risk equivalent / 8%

39,521

Adjustment to credit risk-weighted assets

357,672

Total amount of risk-weighted assets(D)

914,069((C) / (D))

9.43%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)AmountConsolidated total capital requirements (Domestic standard)(Total Risk-Weighted Assets by 4%)1136,562