August 11, 2020
Sony Financial Holdings Inc.

Summary Information on Sony Bank’s Financial Results
for the Three Months Ended June 30, 2020
<Contents>
1. Consolidated Balance Sheets
2. Consolidated Statements of Income and Consolidated Statements ofComprehensive Income

P.2
P.3

3. Non-consolidated Balance Sheets

P.4

4. Non-consolidated Statements of Income

P.5

5. Supplementary Information

P.6(1) Deposits and loans (Non-consolidated)

P.6(2) Balance of time deposits by remaining period (Non-consolidated)

P.6(3) Balance of securities by ratings (Non-consolidated)

P.6(4) Risk-monitored loans (Non-consolidated)

P.6(5) Consolidated capital adequacy ratio (Domestic standard)

P.7(6) Non-consolidated capital adequacy ratio (Domestic standard)

P.8

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, 2020
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

2

As of June 30, 2020

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

372,628
5,293
23,180774,690
2,051,156
11,25050,613
1,455
6,639
2,672(869)
3,298,713

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

2,602,875
226,24115,418
292,487517
71,147
166
1,312
99
3,210,266

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

31,00021,00035,32687,326
(731)
(424)
(49)
(1,206)2,326
88,446
3,298,713

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(1) Consolidated Statements of Income
For the three months ended
June 30, 2019

(Millions of yen)
For the three months ended
June 30, 2020

Ordinary Revenues

11,931

12,194

Interest income

8,399

7,925

4,519

4,920

Interest income on loans

3,861

2,986

Fees and commissions

Interest income and dividends on securities

2,601

3,370

Other operating income879

768

51

129

Ordinary Expenses

Other ordinary income

9,493

9,891

Interest expenses

2,432

1,698

1,965

1,207

2,182

2,577

0

107

4,874

5,376

3132

Ordinary Profit

2,438

2,302

Income Before Income Taxes

Interest expenses on deposits
Fees and commissions
Other operating expenses
General and administrative expenses
Other ordinary expenses

2,438

2,302

Income Taxes—Current388

483

Income Taxes—Deferred364

229

Total Income Taxes

752

713

1,685

1,588

78

75

1,607

1,513

For the three months ended
June 30, 2019

For the three months ended
June 30, 2020

1,685

1,588

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

107

9,568

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

(57)

131

ProfitProfit Attributable to Non-controlling Interests
Profit Attributable to Owners of the Parent(2) Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitOther Comprehensive Income

Remeasurements of defined benefit plans, net of taxes

43

Total other comprehensive income

53

9,704

1,739

11,292

1,659

11,216

7976

Comprehensive Income(Details)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests33. Non-consolidated Balance Sheets(Millions of yen)
(Reference)
As of March 31, 2020
(C)

As of June 30, 2019(A)

As of June 30, 2020
(B)

Cash and due from banks

395,437

366,544(28,893)

310,724+55,820

Monetary claims purchased

4,465

5,293+828

6,006

(712)

Change(B-A)

Change(B-C)

Assets:Money held in trust

21,87423,180+1,306

23,107+73

Securities

728,195

776,710+48,515

703,352+73,358

1,782,748

2,051,156+268,407

1,979,126+72,030

Foreign exchanges

Loans

9,756

11,250+1,493

3,019+8,230

Other assets

39,312

38,142(1,169)41,823(3,680)

Tangible fixed assets

1,073

997

(76)

1,024

(27)

Intangible fixed assets

5,018

5,004

(14)

5,225

(220)

Deferred tax assets

762

2,549

+1,786

6,909(4,359)Reserve for possible loan losses

(893)

(869)

+24(846)(22)

2,987,751

3,279,961+292,209

3,079,472+200,489+128,889

Total Assets
Liabilities:
Deposits

2,403,489

2,610,779+207,290

2,481,890

Call money

204,283

226,241+21,957

176,256+49,984

Payables under repurchase agreements

28,682

15,418(13,263)

41,093(25,674)

Borrowed money

210,000

292,487+82,487

247,923+44,564

Foreign exchanges

206

517

+311

684

(167)

Other liabilities

54,04948,101(5,947)52,743(4,641)(264)

Reserve for employees' bonuses

113

97

(16)

361

Reserve for employees' retirement benefits

1,001

1,089+88

1,068+20

Provision for reimbursement of deposits

10899(8)111(11)

2,901,933

3,194,832+292,899

3,002,133+192,699

Total Liabilities
Net Assets:
Common stock

31,00031,000－31,000－Capital surplus

21,00021,000－21,000－Retained earnings

31,05534,284+3,22936,195(1,910)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

83,05586,284+3,22988,195(1,910)4,081(731)(4,812)(10,299)+9,568(1,318)(424)+893(556)+131

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

2,762(1,156)(3,919)(10,856)+9,70085,81885,128(689)

77,338+7,7892,987,751

3,279,961+292,209

3,079,472+200,489

44. Non-consolidated Statements of Income(Millions of yen)
For the three months ended
June 30, 2019(A)

For the three months ended
June 30, 2020
(B)

(Reference)
For the year ended
March 31, 2020

Change(B-A)

Ordinary Revenues

10,77210,786+13Interest income

8,399

7,925(474)33,950Interest income on loans

4,519

4,920+401

18,72945,383

Interest income and dividends on securities

3,861

2,986(874)15,148Fees and commissions

1,442

1,962+520

7,487

Other operating income

879

768(110)

3,515

Other ordinary income

51

129+77429

8,599

8,741+142

35,793

Ordinary Expenses
Interest expenses

2,431

1,698(733)9,269Interest expenses on deposits

1,965

1,207(758)7,276Fees and commissions

2,046

2,255+209

8,476

0106+106

126

4,117

4,584+467

17,782Other operating expenses
General and administrative expenses
Other ordinary expenses

395+91138

2,173

2,045(128)9,589－－－49－

－－

49

2,173

2,045

(128)

9,540

Income Taxes—Current

321

420+982,817

Income Taxes—Deferred

348

212

(136)

79

Total Income Taxes

670

632

(38)

2,897

1,503

1,412

(90)

6,642

Ordinary Profit
Extraordinary Losses
Other extraordinary losses
Income Before Income Taxes

Net Income55. Supplementary Information(1) Deposits and loans (Non-consolidated)(Millions of yen, %)For the three months ended
June 30, 2019
Balanceat the end

Averagebalance

2,403,489

2,375,619

1,963,311

For the three months ended
June 30, 2020
Balanceat the end

Averagebalance0.33

2,610,779

2,524,009

0.19

1,950,430

0.09

2,145,925

2,059,111

0.08

802,134

793,8300.00

930,094

892,887

0.00

1,159,908

1,155,191

0.16

1,213,813

1,164,607

0.15

440,177

425,1881.40

464,854464,898

0.66

Ordinary deposits

176,495

168,600

0.50

199,206

194,4210.00

Time deposits

263,592

256,502

1.98

265,608

270,442

1.13

1,782,748

1,760,602

1.02

2,051,156

2,015,232

0.97

1,731,267

1,707,959

0.95

2,011,185

1,972,210

0.91

51,48152,643

3.33

39,971

43,022

3.73

Deposits
Yen deposits
Ordinary deposits
Time deposits
Foreign currency deposits

Loans
Mortgage loans
Others

Yield

Yield

(2) Balance of time deposits by remaining period (Non-consolidated)(Millions of yen)
As of June 30, 2019
Foreigncurrency

Remaining period

YenLess than 3 months

397,9203 months or more, less than 6 months
6 months or more, less than 1 year

As of June 30, 2020
Foreigncurrency

Total

Yen

153,883

551,804

390,196

167,263

557,460

261,397

50,855

312,252

321,401

57,594

378,996

296,053

45,138341,191

335,291

33,663368,955

1 year or more, less than 2 years

60,088

9,937

70,026

31,207

5,207

36,4142 years or more, less than 3 years

10,143

3,758

13,902

14,094

1,874

15,9693 years or more

46,762

18

46,781

28,761

3

28,765

1,072,365

263,592

1,335,958

1,120,953

265,608

1,386,561

Total

Total

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

(3) Balance of securities by ratings (Non-consolidated)(Millions of yen, %)As of June 30, 2019
Ratings

Balance

As of June 30, 2020

Composition

BalanceComposition

AAA

321,37444.1

340,32443.8

AA74,463

10.2

67,0298.6

A

298,81441.0

311,93840.2

BBB

23,646

3.2

34,470

4.4

Unrated

9,896

1.4

22,9473.0

Total

728,195

100.0

776,710100.0

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, Fitch Ratings, Ratings and Investment Information and Japan Credit
Rating Agency.
2. The unrated items on the above table include ¥10,021 million of investments in foreign bonds, ¥6,259 million ofinvestments in Japanese local government bonds, ¥4,615 million of investments in unrated investment trusts, and ¥2,050
million of investments in shares of a subsidiary.

(4) Risk-monitored loans (Non-consolidated)

Category
Bankrupt loans
Non-accrual delinquent loans
Past due loans (3 months or more)
Restructured loans
TotalAs of June 30, 2019
Amount227
1,195－
817
2,240

6

(Millions of yen)
As of June 30, 2020
Amount
218
964－
1,739
2,922

(5) Consolidated capital adequacy ratio (Domestic standard)(Millions of yen, %)As of June 30, 2020
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

87,326

Capital and capital surplus

52,000Retained earnings

35,326

Accumulated other comprehensive income included in core capital(49)

Remeasurements of defined benefit plans(49)

Eligible capital instruments included in core capital: instruments and reserves

5,180

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

930

Core capital: instruments and reserves(A)

93,387

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

4,606

Other intangible assets excluding goodwill and mortgage servicing rights

4,606

Shortfall of eligible reserves to expected losses

962Core capital: regulatory adjustments

(B)

5,569

(C)87,818

CapitalCapital((A) - (B))

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

580,340

Total amount included in risk-weighted assets subject to transitional arrangements(7,548)

Exposure to other financial institutions(7,548)

Total amount of operational risk equivalent / 8%

52,569Adjustment to credit risk-weighted assets

379,758

Total amount of risk-weighted assets(D)

1,012,669((C) / (D))

8.67%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of June 30, 2020
Consolidated total capital requirements (Domestic standard) (Total risk-weighted assets by 4%)

740,506

(6) Non-consolidated capital adequacy ratio (Domestic standard)(Millions of yen, %)As of June 30, 2020
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

86,284

Capital and capital surplus

52,000Retained earnings

34,284

Eligible capital instruments included in core capital: instruments and reserves

5,180Core capital: instruments and reserves(A)

91,465

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

3,472

Other intangible assets excluding goodwill and mortgage servicing rights

3,472

Shortfall of eligible reserves to expected losses

962Core capital: regulatory adjustments

(B)

4,434

(C)

87,030CapitalCapital((A) - (B))

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

581,886

Total amount included in risk-weighted assets subject to transitional arrangements(7,548)

Exposure to other financial institutions(7,548)

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

378,463

Total amount of risk-weighted assets(D)

1,005,863((C) / (D))

8.65%

Capital adequacy ratio
Capital adequacy ratio(Millions of yen)
As of June 30, 2020
Non-consolidated total capital requirements (Domestic standard) (Total risk-weighted assets by 4%)

840,234