# EDGAR Filing Document

**Accession Number:** 0001022837
**File Stem:** 0001193125-26-281738
**Filing Date:** 2026-6
**Character Count:** 387210
**Document Hash:** fe0c7ea77d372c63f9417d07a8b89bd1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-281738.hdr.sgml**: 20260625

**ACCESSION NUMBER**: 0001193125-26-281738

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20260625

**FILED AS OF DATE**: 20260625

**DATE AS OF CHANGE**: 20260625

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** SUMITOMO MITSUI FINANCIAL GROUP, INC.
- **CENTRAL INDEX KEY:** 0001022837
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** M0
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34919
- **FILM NUMBER:** 261117543

**BUSINESS ADDRESS:**
- **STREET 1:** 1-2, MARUNOUCHI 1-CHOME
- **STREET 2:** CHIYODA-KU
- **CITY:** TOKYO
- **STATE:** M0
- **ZIP:** 100-0005
- **BUSINESS PHONE:** 81-3-3282-8111

**MAIL ADDRESS:**
- **STREET 1:** 1-2, MARUNOUCHI 1-CHOME
- **STREET 2:** CHIYODA-KU
- **CITY:** TOKYO
- **STATE:** M0
- **ZIP:** 100-0005

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SUMITOMO MITSUI FINANCIAL GROUP/FI
- **DATE OF NAME CHANGE:** 20021226

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SUMITOMO BANK LTD TOKYO     /FI
- **DATE OF NAME CHANGE:** 19960913

##### [**Table of Contents**](#toc)
**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 6-K** 

**REPORT OF FOREIGN PRIVATE ISSUER** 

**PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE** 

**SECURITIES EXCHANGE ACT OF 1934** 

**For the month of June 2026** 

**Commission file number 001-34919** 

**SUMITOMO MITSUI FINANCIAL GROUP, INC.** 

**(Translation of registrant's name into English)** 

**1-2, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan** 

**(Address of principal executive offices)** 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☒ or Form 40-F ☐

------

##### [**Table of Contents**](#toc)
The information, documents and exhibits set forth in this Form 6-K shall be deemed to be incorporated by reference into the prospectus forming a part of Sumitomo Mitsui Financial Group, Inc.'s Registration Statement on Form F-3 (File No. 333-276219) and to be a part of such prospectus from the date of the filing thereof, to the extent not superseded by documents or reports subsequently filed or furnished.

**TABLE OF DOCUMENT(S) SUBMITTED** 

1. [Consolidated Financial Statements of Sumitomo Mitsui Financial Group, Inc. as of and for the years ended March 31, 2026 and 2025](#tx116094_1)

2. [Independent Auditor's Report on the Consolidated Financial Statements of Sumitomo Mitsui Financial Group, Inc. as of and for the years ended March 31, 2026 and 2025](#tx116094_2)

------

##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| Sumitomo Mitsui Financial Group, Inc. | Sumitomo Mitsui Financial Group, Inc. |
| By: | /s/ Kazuyuki Anchi |
|  | Name: Kazuyuki Anchi |
|  | Title: Senior Managing Executive Officer<br>Group Chief Financial Officer |

---

Date: June 25, 2026

------

##### [**Table of Contents**](#toc)
**AUDITED CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS** 

**AS OF AND FOR THE YEARS ENDED MARCH 31, 2026 AND 2025** 

On June 19, 2026, we published our consolidated financial statements as of and for the years ended March 31, 2026 and 2025 prepared in accordance with accounting principles generally accepted in Japan, or Japanese GAAP, as part of our annual securities report (*yukashoken hokokusho*) for the year ended March 31, 2026 filed by us with the relevant Japanese authorities. This document includes such audited consolidated financial statements and the notes thereto. Japanese GAAP differs in certain respects from IFRS Accounting Standards as issued by the International Accounting Standards Board, or IFRS, and generally accepted accounting principles in the United States. For a description of certain differences between IFRS and Japanese GAAP, see "Item 5.A Operating Results—Reconciliation with Japanese GAAP" in our most recent annual report on Form 20-F filed with the SEC.

------

##### [**Table of Contents**](#toc)
**CONSOLIDATED FINANCIAL STATEMENTS** 

**CONSOLIDATED BALANCE SHEETS** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **March 31** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of<br>U.S. dollars** |
| **March 31** | **2025** | **2025** | **2026** | **2026** | **2026** |
|  **Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | \*5 | ¥75590583 | \*5 | ¥73696930 | $460894 |
| &nbsp;&nbsp;&nbsp;&nbsp; Call loans and bills bought |  | 5197978 |  | 7882022 | 49293 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivables under resale agreements |  | 16205759 |  | 20099101 | 125698 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivables under securities borrowing transactions |  | 5799821 |  | 6247642 | 39072 |
| &nbsp;&nbsp;&nbsp;&nbsp; Monetary claims bought |  | 5618985 |  | 6079754 | 38022 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading assets | \*2,\*5 | 11976375 | \*2,\*5 | 16701913 | 104452 |
| &nbsp;&nbsp;&nbsp;&nbsp; Money held in trust |  | 32272 |  | 36902 | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities | \*1,\*2,\*3,\*5,\*12 | 40760968 | \*1,\*2,\*3,\*5,\*12 | 39974120 | 249994 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans and bills discounted | \*3,\*4,\*5,\*6 | 111136239 | \*3,\*4,\*5,\*6 | 117629215 | 735642 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign exchanges | \*3,\*4 | 2712573 | \*3,\*4 | 2030821 | 12701 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease receivables and investment assets |  | 231199 |  | 231429 | 1447 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | \*3,\*5 | 13722960 | \*3,\*5 | 18240722 | 114076 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tangible fixed assets | \*7,\*8,\*9 | 1006556 | \*7,\*8,\*9 | 1074673 | 6721 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings |  | 329897 |  | 350581 | 2193 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land |  | 409805 |  | 420805 | 2632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease assets |  | 25850 |  | 25360 | 159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in progress |  | 48832 |  | 92110 | 576 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other tangible fixed assets |  | 192170 |  | 185815 | 1162 |
| &nbsp;&nbsp;&nbsp;&nbsp; Intangible fixed assets |  | 1017322 |  | 1151037 | 7198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Software |  | 731749 |  | 862113 | 5392 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goodwill |  | 230070 |  | 242387 | 1516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lease assets |  | 155 |  | 665 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other intangible fixed assets |  | 55348 |  | 45870 | 287 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit asset |  | 987288 |  | 1299540 | 8127 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets |  | 71261 |  | 109614 | 686 |
| &nbsp;&nbsp;&nbsp;&nbsp; Customers' liabilities for acceptances and guarantees | \*3 | 15139799 | \*3 | 17033172 | 106524 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for possible loan losses |  | (925931) |  | (1007469) | (6301) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total assets |  | ¥306282015 |  | ¥328511145 | $2054479 |

---

—1—

------

##### [**Table of Contents**](#toc)
**CONSOLIDATED BALANCE SHEETS** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of<br>U.S. dollars** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** | **2026** |
|  **Liabilities and net assets:** |  |  |  |  |  |
|  **Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Deposits |  | ¥171498651 |  | ¥185674241 | $1161190 |
| &nbsp;&nbsp;&nbsp;&nbsp; Negotiable certificates of deposit |  | 17175391 |  | 15667132 | 97981 |
| &nbsp;&nbsp;&nbsp;&nbsp; Call money and bills sold |  | 4378276 |  | 3656736 | 22869 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables under repurchase agreements | \*5 | 25797136 | \*5 | 23764473 | 148621 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payables under securities lending transactions | \*5 | 2183655 | \*5 | 1136833 | 7110 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commercial paper |  | 2686483 |  | 3380389 | 21141 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading liabilities |  | 9726615 |  | 13089960 | 81863 |
| &nbsp;&nbsp;&nbsp;&nbsp; Borrowed money | \*5,\*10 | 11355209 | \*5,\*10 | 9370996 | 58605 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign exchanges |  | 1771839 |  | 1436381 | 8983 |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-term bonds |  | 728200 |  | 773500 | 4837 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bonds | \*5,\*11 | 13352392 | \*5,\*11 | 15369164 | 96117 |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to trust account |  | 1041660 |  | 956169 | 5980 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other liabilities |  | 13700199 |  | 20103338 | 125724 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for employee bonuses |  | 130464 |  | 146303 | 915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for executive bonuses |  | 5433 |  | 5973 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net defined benefit liability |  | 33890 |  | 34317 | 215 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for executive retirement benefits |  | 1007 |  | 907 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for point service program |  | 32656 |  | 63254 | 396 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for reimbursement of deposits |  | 5573 |  | 35806 | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for losses on interest repayment |  | 242127 |  | 226742 | 1418 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserves under the special laws |  | 5365 |  | 6737 | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities |  | 422050 |  | 619716 | 3876 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities for land revaluation | \*7 | 26424 | \*7 | 25750 | 161 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acceptances and guarantees |  | 15139799 |  | 17033172 | 106524 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total liabilities |  | 291440506 |  | 312578001 | 1954834 |
|  **Net assets:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital stock |  | 2345960 |  | 2346888 | 14677 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capital surplus |  | 611423 |  | 582909 | 3645 |
| &nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  | 8290170 |  | 8871065 | 55479 |
| &nbsp;&nbsp;&nbsp;&nbsp; Treasury stock |  | (38512) |  | (48851) | (306) |
| &nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity |  | 11209042 |  | 11752012 | 73496 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on other securities |  | 1930834 |  | 2185092 | 13665 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net deferred gains (losses) on hedges |  | (168604) |  | (300715) | (1881) |
| &nbsp;&nbsp;&nbsp;&nbsp; Land revaluation excess | \*7 | 32849 | \*7 | 29133 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments |  | 1411827 |  | 1706949 | 10675 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated remeasurements of defined benefit plans |  | 287487 |  | 412985 | 2583 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total accumulated other comprehensive income |  | 3494393 |  | 4033445 | 25225 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock acquisition rights |  | 767 |  | 594 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests |  | 137306 |  | 147092 | 920 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total net assets |  | 14841509 |  | 15933144 | 99644 |
|  Total liabilities and net assets |  | ¥306282015 |  | ¥328511145 | $2054479 |

---

—2—

------

##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF INCOME** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of<br>U.S. dollars** |
| <br>**Year ended March 31** | **2025** | **2025** | **2026** | **2026** | **2026** |
|  Ordinary income |  | ¥10174894 |  | ¥10790853 | $67485 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income |  | 6928577 |  | 7224758 | 45183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on loans and discounts |  | 3984710 |  | 4024934 | 25172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest and dividends on securities |  | 935978 |  | 1016742 | 6359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on call loans and bills bought |  | 182718 |  | 126527 | 791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on receivables under resale agreements |  | 268048 |  | 463968 | 2902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on receivables under securities borrowing transactions |  | 120363 |  | 128104 | 801 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on deposits with banks |  | 650205 |  | 786707 | 4920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on lease transactions |  | 12185 |  | 11571 | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on deferred payment |  | 22320 |  | 23452 | 147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other interest income |  | 752046 |  | 642749 | 4020 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trust fees |  | 9733 |  | 11722 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp; Fees and commissions |  | 1874934 |  | 2110110 | 13196 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading income |  | 568890 |  | 236374 | 1478 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other operating income |  | 172329 |  | 492473 | 3080 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other income |  | 620428 |  | 715415 | 4474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recoveries of written-off claims |  | 16449 |  | 28624 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | \*1 | 603979 | \*1 | 686790 | 4295 |
|  Ordinary expenses |  | 8455412 |  | 8487502 | 53080 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expenses |  | 4590358 |  | 4505121 | 28175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on deposits |  | 1671048 |  | 1737487 | 10866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on negotiable certificates of deposit |  | 559252 |  | 511509 | 3199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on call money and bills sold |  | 48050 |  | 39839 | 249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on payables under repurchase agreements |  | 837244 |  | 854917 | 5347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on payables under securities lending transactions |  | 38368 |  | 24632 | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on commercial paper |  | 109557 |  | 130678 | 817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on borrowed money |  | 170937 |  | 164597 | 1029 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on short-term bonds |  | 3298 |  | 5213 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on bonds |  | 413681 |  | 488177 | 3053 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other interest expenses |  | 738918 |  | 548065 | 3428 |
| &nbsp;&nbsp;&nbsp;&nbsp; Fees and commissions payments |  | 315758 |  | 289531 | 1811 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading losses |  | 185324 |  | 36930 | 231 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other operating expenses |  | 336278 |  | 399160 | 2496 |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | \*2 | 2401955 | \*2 | 2651514 | 16582 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other expenses |  | 625736 |  | 605243 | 3785 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for reserve for possible loan losses |  | 167639 |  | 192226 | 1202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | \*3 | 458097 | \*3 | 413017 | 2583 |
|  Ordinary profit |  | 1719482 |  | 2303350 | 14405 |

---

—3—

------

##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF INCOME** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of<br>U.S. dollars** |
| <br>**Year ended March 31** | **2025** | **2025** | **2026** | **2026** | **2026** |
|  Extraordinary gains |  | ¥3090 |  | ¥9749 | $61 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gains on disposal of fixed assets |  | 3090 |  | 9749 | 61 |
|  Extraordinary losses |  | 22630 |  | 61374 | 384 |
| &nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of fixed assets |  | 14843 |  | 8025 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp; Losses on impairment of fixed assets | \*5 | 7052 | \*5 | 4496 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for reserve for eventual future operating losses from <br>financial instruments transactions |  | 733 |  | 1372 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other extraordinary losses |  |  | \*4 | 47480 | 297 |
|  Income before income taxes |  | 1699943 |  | 2251725 | 14082 |
|  Income taxes-current |  | 577307 |  | 663449 | &nbsp;&nbsp;&nbsp;&nbsp;4149 |
|  Income taxes-deferred |  | (64242) |  | 3461 | 22 |
|  Income taxes |  | &nbsp;&nbsp;&nbsp;&nbsp;513065 |  | 666910 | 4171 |
|  Profit |  | 1186877 |  | 1584815 | 9911 |
|  Profit attributable to non-controlling interests |  | 8881 |  | 1841 | 12 |
|  Profit attributable to owners of parent |  | ¥1177996 |  | ¥1582973 | $9900 |

---

—4—

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##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of<br> U.S. dollars** |
| <br>**Year ended March 31** | **2025** | **2025** | **2026** | **2026** | **2026** |
|  Profit |  | ¥1186877 |  | ¥1584815 | $9911 |
|  Other comprehensive income (losses) | \*1 | (474327) | \*1 | 544262 | 3404 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on other securities |  | (420445) |  | 259448 | 1623 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net deferred gains (losses) on hedges |  | (99721) |  | (132981) | (832) |
| &nbsp;&nbsp;&nbsp;&nbsp; Land revaluation excess |  |  |  | (776) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments |  | (18937) |  | 325502 | 2036 |
| &nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit plans |  | (2819) |  | 125135 | 783 |
| &nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income of affiliates |  | 67596 |  | (32065) | (201) |
|  Total comprehensive income |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;712549 |  | &nbsp;&nbsp;&nbsp;&nbsp;2129077 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13315 |
| &nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income attributable to owners of parent |  | 703678 |  | 2124964 | 13289 |
| &nbsp;&nbsp;&nbsp;&nbsp; Comprehensive income attributable to non-controlling interests |  | 8871 |  | 4112 | 26 |

---

—5—

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##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | |
| **Year ended March 31, 2025** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | |
| **Year ended March 31, 2025** | **Capital<br>stock** | **Capital<br>surplus** | **Retained<br>earnings** | **Treasury<br>stock** | **Total** | |
|  Balance at the beginning of the fiscal year | ¥2344038 | ¥610143 | ¥7843470 | ¥(167671) | ¥10629980 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cumulative effects of changes in accounting policies |  |  | 59330 |  | 59330 |  |
|  Restated balance | 2344038 | 610143 | 7902800 | (167671) | 10689311 |  |
|  Changes in the fiscal year |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock | 1922 | 1922 |  |  | 3844 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  | (412240) |  | (412240) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  | 1177996 |  | 1177996 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  | (251629) | (251629) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  | (430) |  | 612 | 181 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  | (380176) |  | 380176 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  | (642) |  |  | (642) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase due to a decrease in subsidiaries |  |  | 133 |  | 133 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  | 2087 |  | 2087 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  | 380607 | (380607) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  |  |  |  |  |
|  Net changes in the fiscal year | 1922 | 1279 | 387369 | 129159 | 519730 |  |
|  Balance at the end of the fiscal year | ¥2345960 | ¥611423 | ¥8290170 | ¥(38512) | ¥11209042 |  |
| **Year ended March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2025** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** |
| **Year ended March 31, 2025** | **Net unrealized<br>gains (losses)<br>on other<br>securities** | **Net deferred<br>gains (losses)<br>on hedges** | **Land<br>revaluation<br>excess** | **Foreign<br>currency<br>translation<br>adjustments** | **Accumulated<br>remeasurements<br>of defined<br>benefit plans** | **Total** |
|  Balance at the beginning of the fiscal year | ¥2406883 | ¥(65073) | ¥34936 | ¥1362647 | ¥290735 | ¥4030129 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cumulative effects of changes in accounting policies | (59330) |  |  |  |  | (59330) |
|  Restated balance | 2347553 | (65073) | 34936 | 1362647 | 290735 | 3970798 |
|  Changes in the fiscal year |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to <br>transaction with non-controlling interests |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase due to a decrease in subsidiaries |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital <br>surplus |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than <br>stockholders' equity in the fiscal year | (416718) | (103531) | (2087) | 49179 | (3247) | (476405) |
|  Net changes in the fiscal year | (416718) | (103531) | (2087) | 49179 | (3247) | (476405) |
|  Balance at the end of the fiscal year | ¥1930834 | ¥(168604) | ¥32849 | ¥1411827 | ¥287487 | ¥3494393 |

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##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2025** | **Stock<br>acquisition<br>rights** | **Non-<br>controlling<br>interests** | **Total<br>net assets** |
|  Balance at the beginning of the fiscal year | ¥931 | ¥138925 | ¥ 14,799,967 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cumulative effects of changes in accounting policies |  |  |  |
|  Restated balance | 931 | 138925 | 14799967 |
|  Changes in the fiscal year |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  | 3844 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  | (412240) |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  | 1177996 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  | (251629) |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  |  | (642) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase due to a decrease in subsidiaries |  |  | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  | 2087 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year | (164) | (1619) | (478188) |
|  Net changes in the fiscal year | (164) | (1619) | 41541 |
|  Balance at the end of the fiscal year | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;767 | ¥&nbsp;&nbsp;&nbsp;&nbsp;137306 | ¥ 14,841,509 |

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##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | |
| **Year ended March 31, 2026** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | |
| **Year ended March 31, 2026** | **Capital<br>stock** | **Capital<br>surplus** | **Retained<br>earnings** | **Treasury<br>stock** | **Total** | |
|  Balance at the beginning of the fiscal year | ¥2345960 | ¥611423 | ¥8290170 | ¥(38512) | ¥11209042 |  |
|  Changes in the fiscal year |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock | 927 | 927 |  |  | 1855 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  | (540292) |  | (540292) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  | 1582973 |  | 1582973 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  | (250624) | (250624) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  | (499) |  | 759 | 260 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  | (239526) |  | 239526 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  | (57) |  |  | (57) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease due to a decrease in equity method affiliates |  |  | (224699) |  | (224699) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in equity interest in subsidiaries of equity method affiliates |  | (29383) |  |  | (29383) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  | 2939 |  | 2939 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  | 240025 | (240025) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  |  |  |  |  |
|  Net changes in the fiscal year | 927 | (28513) | 580894 | (10339) | 542969 |  |
|  Balance at the end of the fiscal year | ¥2346888 | ¥582909 | ¥8871065 | ¥(48851) | ¥11752012 |  |
| **Year ended March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2026** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** |
| **Year ended March 31, 2026** | **Net unrealized<br>gains (losses)<br>on other<br>securities** | **Net deferred<br>gains (losses)<br>on hedges** | **Land<br>revaluation<br>excess** | **Foreign<br>currency<br>translation<br>adjustments** | **Accumulated<br>remeasurements<br>of defined<br>benefit plans** | **Total** |
|  Balance at the beginning of the fiscal year | ¥1930834 | ¥(168604) | ¥32849 | ¥1411827 | ¥287487 | ¥3494393 |
|  Changes in the fiscal year |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease due to a decrease in equity method affiliates |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in equity interest in subsidiaries of equity method affiliates |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year | 254257 | (132110) | (3715) | 295122 | 125497 | 539051 |
|  Net changes in the fiscal year | 254257 | (132110) | (3715) | 295122 | 125497 | 539051 |
|  Balance at the end of the fiscal year | ¥2185092 | ¥(300715) | ¥29133 | ¥1706949 | ¥412985 | ¥4033445 |

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##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2026** | **Stock<br>acquisition<br>rights** | **Non-<br>controlling<br>interests** | **Total<br>net assets** |
|  Balance at the beginning of the fiscal year | ¥767 | ¥137306 | ¥14841509 |
|  Changes in the fiscal year |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  | 1855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  | (540292) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  | 1582973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  | (250624) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  |  | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease due to a decrease in equity method affiliates |  |  | (224699) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in equity interest in subsidiaries of equity method affiliates |  |  | (29383) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  | 2939 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year | (173) | 9786 | 548665 |
|  Net changes in the fiscal year | (173) | 9786 | 1091635 |
|  Balance at the end of the fiscal year | ¥&nbsp;&nbsp;&nbsp;&nbsp;594 | ¥147092 | ¥15933144 |

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##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2026** | **Millions of U.S. dollars** | **Millions of U.S. dollars** | **Millions of U.S. dollars** | **Millions of U.S. dollars** | **Millions of U.S. dollars** | |
| **Year ended March 31, 2026** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | |
| **Year ended March 31, 2026** | **Capital<br>stock** | **Capital<br>surplus** | **Retained<br>earnings** | **Treasury<br>stock** | **Total** | |
|  Balance at the beginning of the fiscal year | $14671 | $3824 | $51846 | $(241) | $70100 |  |
|  Changes in the fiscal year |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock | 6 | 6 |  |  | 12 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  | (3379) |  | (3379) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  | 9900 |  | 9900 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  | (1567) | (1567) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  | (3) |  | 5 | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  | (1498) |  | 1498 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  | (0) |  |  | (0) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease due to a decrease in equity method affiliates |  |  | (1405) |  | (1405) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in equity interest in subsidiaries of equity method affiliates |  | (184) |  |  | (184) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  | 18 |  | 18 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  | 1501 | (1501) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  |  |  |  |  |
|  Net changes in the fiscal year | 6 | (178) | 3633 | (65) | 3396 |  |
|  Balance at the end of the fiscal year | $14677 | $3645 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55479 | $(306) | $73496 |  |
| **Year ended March 31, 2026** | <br> **Millions of U.S. dollars** | <br> **Millions of U.S. dollars** | <br> **Millions of U.S. dollars** | <br> **Millions of U.S. dollars** | <br> **Millions of U.S. dollars** | <br> **Millions of U.S. dollars** |
| **Year ended March 31, 2026** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** | **Accumulated other comprehensive income** |
| **Year ended March 31, 2026** | **Net unrealized<br>gains (losses)<br>on other<br>securities** | **Net deferred<br>gains (losses)<br>on hedges** | **Land<br>revaluation<br>excess** | **Foreign<br>currency<br>translation<br>adjustments** | **Accumulated<br>remeasurements<br>of defined<br>benefit plans** | **Total** |
|  Balance at the beginning of the fiscal year | $12075 | $(1054) | $205 | $8829 | $1798 | $21854 |
|  Changes in the fiscal year |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease due to a decrease in equity method affiliates |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in equity interest in subsidiaries of equity method affiliates |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year | 1590 | (826) | (23) | 1846 | 785 | 3371 |
|  Net changes in the fiscal year | 1590 | (826) | (23) | 1846 | 785 | 3371 |
|  Balance at the end of the fiscal year | $13665 | $(1881) | $182 | $10675 | $2583 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25225 |

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**CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS** 

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31, 2026** | **Millions of U.S. dollars** | **Millions of U.S. dollars** | **Millions of U.S. dollars** |
| **Year ended March 31, 2026** | **Stock<br>acquisition<br>rights** | **Non-<br>controlling<br>interests** | **Total<br>net assets** |
|  Balance at the beginning of the fiscal year | $5 | $859 | $92817 |
|  Changes in the fiscal year |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  | (3379) |
| &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent |  |  | 9900 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  | (1567) |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in shareholders' interest due to transaction with non-controlling interests |  |  | (0) |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease due to a decrease in equity method affiliates |  |  | (1405) |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in equity interest in subsidiaries of equity method affiliates |  |  | (184) |
| &nbsp;&nbsp;&nbsp;&nbsp; Reversal of land revaluation excess |  |  | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year | (1) | 61 | 3431 |
|  Net changes in the fiscal year | (1) | 61 | 6827 |
|  Balance at the end of the fiscal year | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 | $&nbsp;&nbsp;&nbsp;&nbsp;920 | $99644 |

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**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31** | **Millions of yen** | **Millions of yen** | **Millions of<br>U.S. dollars** |
| **Year ended March 31** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2026**  | **2026** |
|  **Cash flows from operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Income before income taxes | ¥&nbsp;&nbsp;&nbsp;&nbsp;1699943 | ¥&nbsp;&nbsp;&nbsp;&nbsp;2251725 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14082 |
| &nbsp;&nbsp;&nbsp; Depreciation | 247868 | 264838 | 1656 |
| &nbsp;&nbsp;&nbsp; Losses on impairment of fixed assets | 7052 | 4496 | 28 |
| &nbsp;&nbsp;&nbsp; Amortization of goodwill | 32912 | 26246 | 164 |
| &nbsp;&nbsp;&nbsp; Losses related to the sale of part of the US banking subsidiary's business |  | 46112 | 288 |
| &nbsp;&nbsp;&nbsp; Net (gains) losses on step acquisitions |  | 1367 | 9 |
| &nbsp;&nbsp;&nbsp; Equity in (gains) losses of affiliates | 5504 | (137710) | (861) |
| &nbsp;&nbsp;&nbsp; Net change in reserve for possible loan losses | 111300 | 76329 | 477 |
| &nbsp;&nbsp;&nbsp; Net change in reserve for employee bonuses | 14321 | 13043 | 82 |
| &nbsp;&nbsp;&nbsp; Net change in reserve for executive bonuses | 1038 | 523 | 3 |
| &nbsp;&nbsp;&nbsp; Net change in net defined benefit asset and liability | (76526) | (311682) | (1949) |
| &nbsp;&nbsp;&nbsp; Net change in reserve for executive retirement benefits | (172) | (100) | (1) |
| &nbsp;&nbsp;&nbsp; Net change in reserve for point service program | (2966) | 30597 | 191 |
| &nbsp;&nbsp;&nbsp; Net change in reserve for reimbursement of deposits | (3655) | 30232 | 189 |
| &nbsp;&nbsp;&nbsp; Net change in reserve for losses on interest repayment | 120180 | (15384) | (96) |
| &nbsp;&nbsp;&nbsp; Interest income | (6928577) | (7224758) | (45183) |
| &nbsp;&nbsp;&nbsp; Interest expenses | 4590358 | 4505121 | 28175 |
| &nbsp;&nbsp;&nbsp; Net (gains) losses on securities | (460489) | (378553) | (2367) |
| &nbsp;&nbsp;&nbsp; Net (gains) losses from money held in trust | 88 | (392) | (2) |
| &nbsp;&nbsp;&nbsp; Net exchange (gains) losses | 825 | (816062) | (5104) |
| &nbsp;&nbsp;&nbsp; Net (gains) losses from disposal of fixed assets | 11753 | (1724) | (11) |
| &nbsp;&nbsp;&nbsp; Net change in trading assets | (595017) | (7716989) | (48261) |
| &nbsp;&nbsp;&nbsp; Net change in trading liabilities | (299132) | 6691725 | 41849 |
| &nbsp;&nbsp;&nbsp; Net change in loans and bills discounted | (4223203) | (5769364) | (36081) |
| &nbsp;&nbsp;&nbsp; Net change in deposits | 6752524 | 12846621 | 80342 |
| &nbsp;&nbsp;&nbsp; Net change in negotiable certificates of deposit | 2506958 | (1544982) | (9662) |
| &nbsp;&nbsp;&nbsp; Net change in borrowed money (excluding subordinated borrowings) | (3315758) | (2045097) | (12790) |
| &nbsp;&nbsp;&nbsp; Net change in deposits with banks | 2299127 | (4141388) | (25900) |
| &nbsp;&nbsp;&nbsp; Net change in call loans and bills bought and others | (6829158) | (6548973) | (40957) |
| &nbsp;&nbsp;&nbsp; Net change in receivables under securities borrowing transactions | 1005991 | (448302) | (2804) |
| &nbsp;&nbsp;&nbsp; Net change in call money and bills sold and others | 7138387 | (2938650) | (18378) |
| &nbsp;&nbsp;&nbsp; Net change in commercial paper | 216445 | 690162 | 4316 |
| &nbsp;&nbsp;&nbsp; Net change in payables under securities lending transactions | 441046 | (1046408) | (6544) |
| &nbsp;&nbsp;&nbsp; Net change in foreign exchanges (assets) | (646936) | 701146 | 4385 |
| &nbsp;&nbsp;&nbsp; Net change in foreign exchanges (liabilities) | (1100136) | (341174) | (2134) |
| &nbsp;&nbsp;&nbsp; Net change in lease receivables and investment assets | (16993) | 16973 | 106 |
| &nbsp;&nbsp;&nbsp; Net change in short-term bonds (liabilities) | (134800) | 45300 | 283 |
| &nbsp;&nbsp;&nbsp; Issuance and redemption of bonds (excluding subordinated bonds) | 121915 | 609074 | 3809 |
| &nbsp;&nbsp;&nbsp; Net change in due to trust account | (204537) | (85490) | (535) |
| &nbsp;&nbsp;&nbsp; Interest received | 6964670 | 7376170 | 46130 |
| &nbsp;&nbsp;&nbsp; Interest paid | (4588453) | (4386201) | (27431) |
| &nbsp;&nbsp;&nbsp; Other, net | 478347 | (29421) | (184) |
| &nbsp;&nbsp;&nbsp; Subtotal | 5342048 | (9701005) | (60669) |
| &nbsp;&nbsp;&nbsp; Income taxes paid | (493583) | (582134) | (3641) |
| &nbsp;&nbsp;&nbsp; Net cash provided by (used in) operating activities | 4848464 | (10283139) | (64310) |

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##### [**Table of Contents**](#toc)
**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of<br>U.S. dollars** |
| **Year ended March 31** | **2025** | **2025** | **2026** | **2026** | **2026** |
|  **Cash flows from investing activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of securities |  | ¥ (48625007) |  | ¥ (44401975) | $(277686) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of securities |  | 18204027 |  | 15071521 | 94256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from redemption of securities |  | 26275651 |  | 32985276 | 206287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of money held in trust |  | (8611) |  | (8301) | (52) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of money held in trust |  | 1 |  | 4064 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of tangible fixed assets |  | (110930) |  | (185107) | (1158) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of tangible fixed assets |  | 7005 |  | 11619 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of intangible fixed assets |  | (256035) |  | (292413) | (1829) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from purchases of stocks of subsidiaries resulting in change in scope of consolidation |  |  |  | 69552 | 435 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of stocks of subsidiaries resulting in change in scope of consolidation |  | (315) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of stocks of subsidiaries resulting in change in scope of consolidation |  | 1272 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) investing activities |  | (4512943) |  | 3254237 | 20352 |
|  **Cash flows from financing activities:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from subordinated borrowings |  | 33000 |  | 29000 | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of subordinated borrowings |  | (33000) |  | (48000) | (300) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of subordinated bonds and bonds with stock acquisition rights |  | 626442 |  | 974775 | 6096 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Redemption of subordinated bonds and bonds with stock acquisition rights |  | (437067) |  | (208000) | (1301) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid |  | (412120) |  | (540071) | (3378) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of common stock to non-controlling shareholders |  |  |  | 1410 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends paid to non-controlling shareholders |  | (5956) |  | (5060) | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of treasury stock |  | (251629) |  | (250624) | (1567) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposal of treasury stock |  | 181 |  | 260 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of treasury stock of subsidiaries |  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of stocks of subsidiaries not resulting in change in scope of consolidation |  |  |  | (45) | (0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of stocks of subsidiaries not resulting in change in scope of consolidation |  |  |  | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities |  | (480149) |  | (46355) | (290) |
|  Effect of exchange rate changes on cash and cash equivalents |  | (48027) |  | 319356 | 1997 |
|  Net change in cash and cash equivalents |  | (192656) |  | (6755900) | (42251) |
|  Cash and cash equivalents at the beginning of the fiscal year |  | 66380330 |  | 66187674 | 413932 |
|  Cash and cash equivalents at the end of the fiscal year | \*1 | ¥ 66,187,674 | \*1 | ¥ 59,431,773 | $371681 |

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**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**(Basis of presentation)** 

Sumitomo Mitsui Financial Group, Inc. ("the Company") was established on December 2, 2002, as the holding company for the SMBC Group ("the Group") through a statutory share transfer (*kabushiki iten*) of all the outstanding equity securities of Sumitomo Mitsui Banking Corporation ("SMBC") in exchange for the Company's newly issued securities. The Company is a joint stock corporation with limited liability (*Kabushiki Kaisha*) incorporated under the Companies Act of Japan. Upon formation of the Company and completion of the statutory share transfer, SMBC became a direct wholly owned subsidiary of the Company.

The Company has prepared the accompanying consolidated financial statements in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations, and in conformity with accounting principles generally accepted in Japan ("Japanese GAAP"), which differ from IFRS Accounting Standards ("IFRS") in certain respects, particularly regarding application and disclosure requirements.

The accounts of overseas subsidiaries and affiliated companies are, in principle, integrated with those of the Company's accounting policies for purposes of consolidation unless they apply different accounting principles and standards as required under U.S. GAAP or IFRS, in which case a certain limited number of items are adjusted based on their materiality.

These consolidated financial statements are translated from the consolidated financial statements contained in the annual securities report filed under the Financial Instruments and Exchange Act of Japan ("FIEA-based financial statements"), except for the addition of the non-consolidated financial statements and U.S. dollar figures.

Amounts less than ¥1 million have been rounded down. As a result, the totals in Japanese yen shown in the financial statements do not necessarily agree with the sum of the individual amounts.

The translation of Japanese yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan, using the prevailing exchange rate as of March 31, 2026, which was ¥159.90 to US$1. These translations should not be construed as a representation that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at that rate.

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**(Significant Accounting Policies for Preparing Consolidated Financial Statements)** 

**1. Scope of consolidation** 

(1) Consolidated subsidiaries

The number of consolidated subsidiaries as of March 31, 2026 was 184.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal companies: | Sumitomo Mitsui Banking Corporation ("SMBC") |
|  | SMBC Trust Bank Ltd. |
|  | SMBC Nikko Securities Inc. |
|  | Sumitomo Mitsui Card Company, Limited |
|  | SMBC Consumer Finance Co., Ltd. |
|  | JRI Holdings, Limited |
|  | The Japan Research Institute, Limited |
|  | Sumitomo Mitsui DS Asset Management Company, Limited |
|  | SMBC Bank International plc |
|  | SMBC Bank EU AG |
|  | Sumitomo Mitsui Banking Corporation (China) Limited |
|  | PT Bank SMBC Indonesia Tbk |
|  | SMBC Americas Holdings, Inc. |
|  | SMBC Guarantee Co., Ltd. |

---

Changes in the consolidated subsidiaries in the fiscal year ended March 31, 2026 were as follows:

CCC MK HOLDINGS Co., Ltd. and 16 other companies were newly included in the scope of consolidation due to the acquisition of shares and other reasons.

5 companies were excluded from the scope of consolidation because they ceased to be subsidiaries due to mergers and other reasons.

SMBC Venture Capital Management Co., Ltd. changed its name to SMBC Edge Co., Ltd.

(2) Unconsolidated subsidiaries

Principal company: SBCS Co., Ltd.

8 of the unconsolidated subsidiaries were investment partnerships, whose assets and profit or loss were not substantially attributable to the said subsidiaries; therefore, they were excluded from the scope of consolidation pursuant to Article 5, Paragraph 1, Item 2 of the Ordinance on the Terminology, Forms, and Preparation Methods of Consolidated Financial Statements.

Other unconsolidated subsidiaries were excluded from the scope of consolidation because their total assets, ordinary income, net income, and retained earnings were individually immaterial and, therefore, their exclusion from the scope of consolidation did not hinder a rational assessment of the financial position and results of operations of the Company and its consolidated subsidiaries.

(3) Entities not treated as subsidiaries even though the Company owns a majority of voting rights for its own
account:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal companies: | Tamago & Company Inc. |
|  | Fustnot Inc. |
|  | Aqua Clara, inc. |
|  | Aqua Clara Lemon Gas Holdings Co., Ltd. |
|  | NJT Copper Tube Corporation |
|  | EM Devices Corporation |
|  | SYNZTEC CO., LTD. |
|  | Star Works Co., Ltd. |

---

(Reasons for not being treated as subsidiaries)

The Company's consolidated subsidiary conducting investment business owns their voting rights primarily to obtain capital gains through investments or restructuring of their business, and has no intent to control.

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**2. Application of the equity method** 

(1) Unconsolidated subsidiaries accounted for using the equity method

The number of unconsolidated subsidiaries accounted for using the equity method as of March 31, 2026 was 5.

Principal company: SBCS Co., Ltd.

(2) Equity method affiliates

The number of affiliates accounted for using the equity method as of March 31, 2026 was 247.

Principal companies: Sumitomo Mitsui Finance and Leasing Company, Limited <br> Sumitomo Mitsui Auto Service Company, Limited

Changes in the equity method affiliates in the fiscal year ended March 31, 2026 were as follows:

YES BANK LIMITED and 34 other companies became equity method affiliates due to the acquisition of shares and other reasons.

CCC MK HOLDINGS Co., Ltd., The Bank of East Asia, Limited, and 25 other companies were excluded from the scope of equity method affiliates. This was because CCC MK HOLDINGS Co., Ltd. became a consolidated subsidiary, The Bank of East Asia, Limited ceased to be an equity method affiliate due to the partial sale of shares and changes in the composition of its directors, and 25 other companies ceased to be equity method affiliates due to liquidation and other reasons.

(3) Unconsolidated subsidiaries not accounted for using the equity method

8 of the unconsolidated subsidiaries not accounted for using the equity method were investment partnerships, whose assets and profit or loss were not substantially attributable to the said subsidiaries; therefore, they were excluded from the scope of the equity method pursuant to Article 10, Paragraph 1, Item 2 of the Ordinance on the Terminology, Forms, and Preparation Methods of Consolidated Financial Statements.

(4) Affiliates not accounted for using the equity method

Principal company: Park Square Capital / SMBC Loan Programme S. à r. l.

Affiliates not accounted for using the equity method were also excluded from the scope of the equity method because their net income and retained earnings were immaterial and, therefore, their exclusion from the scope of the equity method did not hinder a rational assessment of the Company's financial position and results of operations.

(5) Entities not treated as affiliates even though the Company owns 20 percent or more but not exceeding
50 percent of voting rights for its own account:

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| | |
|:---|:---|
|  Principal companies: | UDI Building Confirmations and Inspections. Inc. |
|  | Geo Maintenance Co., Ltd. |
|  | Yuki Shoji Co., Ltd. |

---

(Reasons for not being treated as affiliates)

The Company's consolidated subsidiary conducting investment business owns their voting rights primarily to obtain capital gains through investments or restructuring of their business, and has no intent to exercise significant influence.

**3. The balance sheet dates of consolidated subsidiaries** 

(1) The balance sheet dates of the consolidated subsidiaries as of March 31, 2026 were as follows:

---

| | |
|:---|:---|
|  June 30 | 1 |
|  September 30 | 1 |
|  October 31 | 2 |
|  November 30 | 3 |
|  December 31 | 89 |
|  March 31 | 88 |

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(2) The subsidiary with a balance sheet date of June 30 is consolidated using financial statements as of
December 31. Subsidiaries with balance sheet dates of October 31 are consolidated using financial statements as of January 31. Subsidiaries with balance sheet dates of September 30 and November 30, and certain subsidiaries with
balance sheet dates of December 31, are consolidated using financial statements as of March 31. Other subsidiaries are consolidated using financial statements as of their respective balance sheet dates.

Appropriate adjustments are made for material transactions during the periods between their respective balance sheet dates and the consolidated closing dates.

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**4. Accounting policies** 

(1) Standards for recognition and measurement of trading assets/liabilities and trading income/losses

Transactions for trading purposes (seeking gains arising from short-term changes in interest rates, currency exchange rates, or market prices of securities and other market related indices or from variation among markets) are included in "Trading assets" or "Trading liabilities" on the consolidated balance sheets on a trade date basis. Profits and losses on trading-purpose transactions are recognized on a trade date basis and recorded as "Trading income" and "Trading losses" on the consolidated statements of income.

Securities and monetary claims purchased for trading purposes are stated at the fiscal year-end market value, and financial derivatives such as swaps, futures and options are stated at amounts that would be settled if the transactions were terminated at the consolidated balance sheet date.

"Trading income" and "Trading losses" include interest received or paid during the fiscal year. The valuation differences of securities and monetary claims between the end of the fiscal year ended March 31, 2025 and the end of the fiscal year ended March 31, 2026 were also recorded in the above-mentioned accounts. With respect to the derivatives, assuming that the settlement will be made in cash, the valuation differences between the end of the fiscal year ended March 31, 2025 and the end of the fiscal year ended March 31, 2026 were also recorded in the above-mentioned accounts.

With respect to market and credit risks specific to derivative transactions, the fair values of financial assets and liabilities are calculated on a group basis, based on net assets or liabilities after offsetting.

(2) Standards for recognition and measurement of securities

1) Debt securities classified as held-to-maturity are measured at amortized cost (based on the straight-line method) using the moving-average method. Investments in affiliates not accounted for using the equity method are measured at cost using the moving-average method. Other securities are measured at their period-end market prices (the cost of securities sold is calculated primarily using the moving-average method). Stocks without market prices are measured at cost using the moving-average method. 

Net unrealized gains (losses) on other securities, net of income taxes, are included in "Net assets," except for amounts reflected in gains or losses under fair value hedge accounting.

2) Securities included in money held in trust are measured using the same method as described in (1) and (2), 1) above.

(3) Standards for recognition and measurement of derivative transactions

Derivative transactions, excluding those classified as trading derivatives, are measured at fair value.

With respect to market and credit risks specific to derivative transactions, the fair values of financial assets and liabilities are calculated on a group basis, based on net assets or liabilities after offsetting.

(4) Depreciation

1) Tangible fixed assets (excluding lease assets)

Buildings owned by the Company and SMBC, a consolidated subsidiary of the Company, are depreciated using the straight-line method.

The estimated useful lives of major items are as follows:

Buildings: 7 to 69 years <br> Others: 2 to 20 years

Other consolidated subsidiaries depreciate tangible fixed assets primarily using the straight-line method over the estimated useful lives of the respective assets.

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2) Intangible fixed assets

Intangible fixed assets are depreciated using the straight-line method. Capitalized software for internal use owned by the Company and its consolidated domestic subsidiaries is depreciated over its estimated useful life (5-10 years).

3) Lease assets

Lease assets in "Tangible fixed assets" related to finance lease transactions, in which ownership is not transferred, are depreciated using the straight-line method over their lease terms as useful lives, with a residual value of zero.

(5) Reserve for possible loan losses

The reserve for possible loan losses of major consolidated subsidiaries is provided in accordance with the internal standards for write-offs and provisions, as detailed below.

For claims on borrowers that have entered into bankruptcy, special liquidation proceedings, or similar legal proceedings ("Bankrupt borrowers"), or borrowers that are not legally or formally insolvent but are regarded as being in substantially the same situation ("Effectively bankrupt borrowers"), a reserve is provided for the amount of claims, after the write-offs stated below, net of the expected amount of recoveries from collateral and guarantees. For claims on borrowers that are not currently bankrupt but are considered to have a high risk of bankruptcy ("Potentially bankrupt borrowers"), a reserve is provided in the amount deemed necessary based on an overall assessment of the collectability of the claims, net of the expected amount of recoveries from collateral and guarantees.

SMBC, a consolidated subsidiary of the Company, applies the Discounted Cash Flows ("DCF") method to claims on large borrowers exceeding a certain amount, whose borrower categories are bankrupt borrowers, effectively bankrupt borrowers, or potentially bankrupt borrowers, and whose loans, in whole or in part, are classified as "Past due loans (3 months or more)" or "Restructured loans" requiring close monitoring, and for which cash flows from the collection of principal and interest can be reasonably estimated. SMBC establishes a reserve for possible loan losses for such claims using the DCF method in the amount of the difference between the present value of principal and interest (calculated using reasonably estimated cash flows discounted at the initial contractual interest rate) and the book value.

For other claims, the reserve is recorded by estimating the amount of expected loss over the next one year or three years. The estimated amount of expected loss is calculated using the average loan-loss ratio or probability of default for certain past periods based on actual loan losses or defaults over the past one year or three years, with necessary adjustments made, including future estimates.

In addition, in light of the latest economic conditions and risk factors, for potential losses relating to specific portfolios that are highly probable based on future prospects but cannot be reflected in historical loan-loss experience or in any individual borrower classification, a reserve is provided in the amount deemed necessary based on an overall assessment.

For claims originated in specific overseas countries, an additional reserve is provided in the amount deemed necessary based on the assessment of political and economic conditions.

Branches and credit supervision departments assess all claims in accordance with the internal rules for self-assessment of assets, and the credit review department, which is independent of these operating sections, audits such assessments.

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The reserve for possible loan losses of other consolidated subsidiaries for general claims is provided in the amount deemed necessary based on historical loan-loss ratios, and for doubtful claims, in the amount deemed uncollectible based on an assessment of each claim.

For collateralized or guaranteed claims on bankrupt borrowers and effectively bankrupt borrowers, the amount exceeding the estimated value of collateral and guarantees is deemed to be uncollectible and written off against the total outstanding amount of the claims. The amounts written off for the fiscal years ended March 31, 2025 and 2026, were ¥242,971 million and ¥264,091 million, respectively.

(6) Reserve for employee bonuses

The reserve for employee bonuses is provided for payment of bonuses to employees, in the amount of estimated bonuses, which are attributable to the fiscal year.

(7) Reserve for executive bonuses

The reserve for executive bonuses is provided for payment of bonuses to executives, in the amount of estimated bonuses, which are attributable to the fiscal year.

(8) Reserve for executive retirement benefits

The reserve for executive retirement benefits is provided for payment of retirement benefits to executives, in an amount deemed to have accrued as of the end of the period based on the Company's internal regulations.

(9) Reserve for point service program

The reserve for the point service program is provided for the potential future redemption of points awarded to customers under the "V Point," the Group-wide point service program, and other customer point award programs. The amount is calculated by converting outstanding points into a monetary amount and reasonably estimating and recognizing the amount expected to be redeemed in the future.

(10) Reserve for reimbursement of deposits

The reserve for reimbursement of deposits derecognized as liabilities under certain conditions is provided for estimated losses on withdrawal claims by depositors, based on the historical reimbursement experience.

(11) Reserve for losses on interest repayment

The reserve for losses on interest repayment is provided for estimated losses on future claims for interest repayment based on historical repayment experience.

(12) Reserves under the special laws

The reserves under the special laws are reserves for contingent liabilities and provided for compensation for losses from securities related transactions or derivative transactions, pursuant to Article 46-5 of the Financial Instruments and Exchange Act.

(13) Employee retirement benefits

In calculating the projected benefit obligation, the benefit formula basis is mainly used to attribute the expected benefits to periods up to the end of the fiscal year.

Unrecognized prior service cost is amortized on a straight-line basis, primarily over 9 years, within the employees' average remaining service period at the time of incurrence.

Unrecognized net actuarial gains or losses are amortized on a straight-line basis, primarily over 9 years, within the employees' average remaining service period, commencing in the fiscal year following incurrence.

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(14) Revenue recognition

1) Revenue recognition

Revenue from contracts with customers is recognized by identifying the satisfaction of performance obligations for each transaction based on the actual transaction of the contractual coverage.

2) Revenue recognition of major transactions

Regarding revenue from contracts with customers, the contractual coverage and the timing of identifying the satisfaction of performance obligations for each item of fees and commissions are determined as follows.

Revenue from deposits and loans, mainly including commission fees, etc. for account transfers and commissions for administration fees during the loan period of syndicated loans, is recognized when the transaction with the customer starts or over the period during which the related services are provided.

Revenue from remittances and transfers, mainly including the fees for domestic and overseas remittances, is recognized when the related services are provided.

Revenue from the securities-related business, mainly including trading commissions such as sales commissions for stocks and bonds, is recognized when the transaction with the customer starts.

Revenue from agency business, mainly including agency service fees such as interbank commissions received due to online alliances, is recognized when the related services are provided or over the period of the related services.

Revenue from safe deposit services, mainly including storage fees for safekeeping deposits and usage fees for safes and protective boxes, is recognized over the period during which the related services are provided.

Revenue from the credit card business, mainly including merchant fees, is recognized when the credit sales data is received.

Revenue from investment trusts, mainly including commissions for processing sales and for record management of investment trusts, etc., is recognized when the transaction with the customer starts or over the period during which the related services are provided.

(15) Translation of foreign currency assets and liabilities

Assets and liabilities of the Company and SMBC, a consolidated subsidiary of the Company, denominated in foreign currencies, and the accounts of SMBC's overseas branches are translated into Japanese yen mainly at the exchange rates prevailing at the consolidated balance sheet date, except for stocks of subsidiaries and affiliates, which are translated at the exchange rates prevailing at the time of acquisition.

Other consolidated subsidiaries' assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates prevailing at their respective balance sheet dates.

(16) Lease transactions

Income from finance leases is recognized by allocating interest income to each period.

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(17) Hedge accounting

1) Hedging against interest rate changes

With respect to the hedge accounting method applied to hedging transactions for interest rate risk arising from financial assets and liabilities, SMBC, a consolidated subsidiary of the Company, applies deferred hedge accounting.

SMBC applies deferred hedge accounting stipulated in "Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in Banking Industry" (JICPA Industry Committee Practical Guideline No. 24, March 17, 2022) to portfolio hedges on groups of large-volume, small-value monetary claims and debts.

With respect to the portfolio hedges to offset market fluctuation, SMBC assesses the effectiveness of such hedges by classifying the hedged items (such as deposits and loans) and the hedging instruments (such as interest rate swaps) by their maturity. With respect to the portfolio hedges to fix cash flows, SMBC assesses the effectiveness of such hedges by verifying the correlation between the hedged items and the hedging instruments.

With respect to the individual hedges, SMBC also assesses the effectiveness of such individual hedges.

2) Hedging against currency fluctuations

SMBC, a consolidated subsidiary of the Company, applies deferred hedge accounting stipulated in "Treatment of Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in Banking Industry" (JICPA Industry Committee Practical Guideline No. 25, October 8, 2020) to currency swap and foreign exchange swap transactions executed for the purpose of lending or borrowing funds in different currencies.

Pursuant to JICPA Industry Committee Practical Guideline No. 25, SMBC assesses the effectiveness of currency swap and foreign exchange swap transactions executed for the purpose of offsetting the risk of changes in currency exchange rates by verifying that there are foreign-currency monetary claims and debts corresponding to the foreign-currency positions.

In order to hedge the risk arising from fluctuations in exchange rates for stocks of subsidiaries and affiliates and other securities (excluding bonds) denominated in foreign currencies, SMBC applies deferred hedge accounting or fair value hedge accounting, provided that the hedged securities are designated in advance and that sufficient on-balance (actual) or off-balance (forward) liability exposure exists to cover the cost of the hedged securities denominated in the same foreign currencies.

3) Hedging against share price fluctuations

SMBC, a consolidated subsidiary of the Company, applies fair value hedge accounting to individual hedges offsetting the price fluctuation of the shares that are classified under other securities, and accordingly evaluates the effectiveness of such individual hedges.

4) Transactions between consolidated subsidiaries

With respect to derivative transactions between consolidated subsidiaries or internal transactions between trading accounts and other accounts (or among internal sections), SMBC manages the interest rate swaps and currency swaps that are designated as hedging instruments in accordance with the non-arbitrary and strict criteria for external transactions stipulated in JICPA Industry Committee Practical Guidelines No. 24 and No. 25. Therefore, SMBC accounts for the gains or losses that arise from interest rate swaps and currency swaps in its earnings or defers them, rather than eliminating them.

Certain other consolidated subsidiaries apply the deferred hedge accounting, fair value hedge accounting or the special treatment for interest rate swaps.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) Amortization of goodwill

Goodwill is amortized using the straight-line method over a period in which its benefit is expected to be realized, not to exceed 20 years. Immaterial goodwill is charged or credited to income directly when incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) Scope of "Cash and cash equivalents" on consolidated statements of cash flows

For the purpose of presenting the consolidated statements of cash flows, "Cash and cash equivalents" consist of cash on hand, non-interest-bearing deposits with banks, and deposits with the Bank of Japan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) Adoption of the group tax sharing system

The Company and certain consolidated domestic subsidiaries apply the group tax sharing system.

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**(Significant Accounting Estimates)** 

1. Reserve for possible loan losses

(1) The amount recorded in the consolidated financial statements for the fiscal year ended March 31, 2025 and
2026

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2025** | **2026** | **2026** |
|  Reserve for possible loan losses | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;925,931 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,007,469 |

---

(2) Information on details of the significant accounting estimates for the identified item

Based on the assessment of all claims, including loans and bills discounted, conducted in accordance with the self-assessment procedures, and borrower categories determined based on their credit risk status, the following amounts are recorded as a reserve for possible loan losses.

- The estimated amount of expected loss calculated for each borrower category based on the average value of historical loan-loss ratios or probability of default over a certain past period is recorded as a reserve for loan losses

- With respect to claims classified as substandard or lower classifications for which cash flows from the collection of principal and interest can be reasonably estimated, the Discounted Cash Flows ("DCF") method is applied to claims involving large borrowers, and the amount calculated using the DCF method is recorded as a reserve for loan losses

- With respect to expected losses that are highly probable based on future prospects but cannot be reflected in historical loan-loss experience or in any individual borrower category, the amount deemed necessary based on an overall assessment is recorded as a reserve for loan losses

The reserve for possible loan losses recorded using the method above involves the following uncertainties in the estimation process and therefore requires a high level of managerial judgment.

- Consideration of qualitative factors, including forward-looking information, in determining borrower categories

- Reasonable estimation of future individual cash flows under the DCF method

- Determination of a method for estimating expected loss based on future prospects, taking into account the latest economic environment, risk factors, and the characteristics of the target portfolio

The items above may be affected by changes in the economic environment, which may have a potentially significant impact on the amount of the reserve for possible loan losses for the next fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Note) For the estimation of the reserve for possible loan losses in consideration of the impact of the deteriorating situation in the Middle East, the impact of inflation and other factors overseas, and the impact of the current international situation involving Ukraine, refer to (Additional Information).

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2. Impairment loss for fixed assets

(1) The amount recorded in the consolidated financial statements for the fiscal year ended March 31, 2025 and
2026

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2025** | **2026** | **2026** |
|  Tangible fixed assets | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,006,556 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,074,673 |
|  Intangible fixed assets |  | 1017322 |  | 1151037 |
|  Losses on impairment of fixed assets |  | 7052 |  | 4496 |

---

(2) Information on details of the significant accounting estimates for the identified item

(Grouping of assets)

With respect to land and buildings, etc., at SMBC, a consolidated subsidiary of the Company, a branch is the smallest unit of asset group, and intangible fixed assets and assets of Head Office, etc. which do not produce independent cash flows are treated as corporate assets. Corporate assets that are reasonably deemed to be used solely by each business unit are identified as each business unit's corporate assets, and impairment assessments for these assets are conducted on a business unit basis together with other related fixed assets. With respect to other corporate assets, impairment is recognized on a company level.

(Identifying indication of impairment, and testing and calculating recognition of impairment loss)

Fixed assets that have an indication of impairment are tested for recognition of impairment loss, and if recognition is required, their book values are reduced to the recoverable amount and the reduced amount is recorded as impairment loss. Recoverable amount is either net realizable value, which is deducting expected disposal cost from fair value of the fixed asset, or value in use which is the present value of cash flows expected to derive from the continuous use and disposal of the fixed asset after use.

Future cash flows and the growth rate used for testing the recognition of impairment loss as well as for calculating value in use are determined based on the factors including the estimation or judgment by management and the market growth rate, etc. Discount rate used for calculating value in use is determined based on the market interest rate and other market conditions, and these may be affected by changes in economic and financial environment. Therefore, if modification is required, it may have a potentially significant impact on the amount of impairment loss for fixed assets for the next fiscal year.

3. Fair value of financial instruments

(1) The amount recorded in the consolidated financial statements for the fiscal year ended March 31, 2026

This is stated in (Notes to financial instruments).

(2) Information on details of the significant accounting estimates for the identified item

This is stated in (Notes to financial instruments).

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##### [**Table of Contents**](#toc)
4. Reserve for losses on interest repayment

(1) The amount recorded in the consolidated financial statements for the fiscal year ended March 31, 2025 and
2026

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2025** | **2026** | **2026** |
|  Reserve for losses on interest repayment | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;242,127 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;226,742 |

---

(2) Information on details of the significant accounting estimates for the identified item

The reserve for losses on interest repayment is recorded based on the estimated amount of claims for repayment, in preparation for future claims of interest repayment from customers whose loans are offered at interest rates in excess of the ceiling prescribed under the Interest Rate Restriction Act.

The estimated amount of claims for such repayment is calculated based on certain assumptions using historical data regarding the number and amount of claims from customers. Trends in future claims for repayment from customers may have a potentially significant impact on the amount of the reserve for losses on interest repayment for the next fiscal year.

5. Retirement benefit expenses and retirement benefit obligations

(1) The amount recorded in the consolidated financial statements for the fiscal year ended March 31, 2025 and
2026

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2026** |
|  Net defined benefit asset | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;987288 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1299540 |
|  Net defined benefit liability | 33890 | 34317 |
|  Retirement benefit expenses included in general and administrative expenses | (26369) | (66546) |

---

(2) Information on details of the significant accounting estimates for the identified item

Retirement benefit expenses and retirement benefit obligations for defined benefit plans for employees are recorded based on various assumptions, including the discount rate, employee turnover rate, and future salary increase rate.

The discount rate is determined based on Japanese government bond yields, while indicators such as the employee turnover rate and future salary increase rate are determined based on historical data as well as the latest information on the future outlook. Determining these key factors and metrics requires a high level of managerial judgment, and if modifications are required, they may have a significant impact on the amounts of retirement benefit expenses and retirement benefit obligations for the next fiscal year.

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6. Deferred tax assets

(1) The amount recorded in the consolidated financial statements for the fiscal year ended March 31, 2025 and
2026

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2025** | **2026** | **2026** |
|  Deferred tax assets | ¥ | 71261 | ¥ | 109614 |
|  Deferred tax liabilities |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;422,050 |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;619,716 |

---

(2) Information on details of the significant accounting estimates for the identified item

The amount of tax associated with temporary differences is recorded as deferred tax assets or deferred tax liabilities, excluding amounts of tax that are not expected to be collected or paid in future accounting periods. Deferred tax assets and deferred tax liabilities for the group's tax sharing entities are offset and presented on a net basis.

While the recoverability of deferred tax assets is determined by reasonably estimating the scheduling of temporary differences and taxable income, changes in the scheduling of temporary differences, taxable income being lower than initially estimated, or tax reforms such as a reduction in the corporate income tax rate may have a significant impact on the amount of deferred tax assets for the next fiscal year.

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##### [**Table of Contents**](#toc)
**(Unapplied Accounting Standards and Others)** 

1. "Accounting Standard for Leases" (ASBJ Statement No.34, September 13, 2024) and "Implementation Guidance on Accounting Standard for Leases" (ASBJ Guidance No.33, September 13, 2024), etc.

(1) Outline

The Accounting Standard and the Implementation Guidance were revised to enhance comparability with the provisions of international accounting standards, with the aim of treating all leases as a form of financial provision for the lessee and separately recognizing depreciation expenses related to right-of-use assets and interest expenses on lease liabilities.

(2) Scheduled date of Application

The Company will apply the Accounting Standard and the Implementation Guidance from the beginning of the fiscal year commencing on April 1, 2027.

(3) Effects of Application of the Accounting Standard and the Implementation Guidance

The effects of the application of the Accounting Standard and the Implementation Guidance are currently being assessed.

2. "Practical Guidelines on Accounting for Financial Instruments" (ASBJ Revised Transferred Guidance No.9, March 11, 2025)

(1) Outline

The Practical Guidelines allow for the option to measure unlisted stocks and others at fair value, which are incorporated into the investment portion of the venture capital funds held by listed companies, etc. and recognize the share of unrealized gains or losses in "Net assets."

(2) Scheduled date of Application

The Company will apply the Practical Guidelines from the beginning of the fiscal year commencing on April 1, 2026.

(3) Effects of Application of the Practical Guidelines

The effects of the application of the Practical Guidelines are immaterial.

3. "Practical Solution on the Tentative Treatment of the Purchasers' Accounting for Certain Transactions to Purchase Renewable Energy Value" (ASBJ Practical Solution No.47, November 11, 2025)

(1) Outline

The Practical Solution sets forth the accounting treatment for purchasers in certain transactions to purchase renewable energy value.

(2) Scheduled date of Application

The Company will apply the Practical Solution from the beginning of the fiscal year commencing on April 1, 2026.

(3) Effects of Application of the Practical Solution

The effects of the application of the Practical Solution are currently being assessed.

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4. "Accounting Standard for Subsequent Events" (ASBJ Statement No.41, January 9, 2026) and "Implementation Guidance on Accounting Standard for Subsequent Events" (ASBJ Implementation Guidance No.35, January 9, 2026)

(1) Outline

The Accounting Standard and the Implementation Guidance set forth the accounting treatment and disclosures for subsequent events. They include revisions to wording, clarification of the evaluation period for subsequent events, and a new requirement to disclose notes regarding the approval for publication of financial statements.

(2) Scheduled date of Application

The Company will apply the Accounting Standard and the Implementation Guidance from the beginning of the fiscal year commencing on April 1, 2027.

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##### [**Table of Contents**](#toc)
**(Additional information)** 

1. The estimates of the reserve for possible loan losses related to the impact of the deteriorating situation in the Middle East

In light of concerns that the creditworthiness of companies considered vulnerable to these impacts may deteriorate amid surging global resource and energy prices and disruptions to shipments of crude oil and other commodities from the Middle East—arising from factors such as the effective closure of the Strait of Hormuz due to the conflict involving the United States, Israel, and Iran—the estimated reserve for possible loan losses associated with these impacts has been reflected in the consolidated financial statements as follows.

For potential losses expected to be incurred related to individual borrowers due to deteriorating business performance and funding, a reserve for possible loan losses is provided by reviewing, as necessary, borrower categories based on the most recent available information.

In addition, for potential losses which cannot be reflected in any individual borrower category, a reserve for possible loan losses is recorded at an amount deemed necessary based on an overall assessment. The assessment includes specifying the portfolios that are considered to be easily affected by the above-mentioned factors from the perspectives of the country or region, industry, and other relevant factors, and estimating the impact of surging resource and energy prices and disrupted shipments of crude oil and other commodities from the Middle East.

As a result, an additional reserve for possible loan losses totaling ¥29,500 million was recorded for these portfolios.

2. The estimates of the reserve for possible loan losses related to the impact of inflation and other factors overseas

In light of concerns that heightened uncertainty in the business environment—including inflation against the backdrop of U.S. tariff measures imposed on certain countries and the resulting impact on supply chains—may increase corporate cost burdens and adversely affect companies' cash flows, the estimated reserve for possible loan losses associated with these impacts has been reflected in the consolidated financial statements as follows.

For losses expected to be incurred in connection with individual borrowers due to deteriorating business performance and funding, a reserve for possible loan losses is provided by reviewing, as necessary, borrower categories based on the most recent available information.

In addition, for potential losses which cannot be reflected in any individual borrower category, a reserve for possible loan losses is recorded at an amount deemed necessary based on an overall assessment. The assessment includes specifying the portfolios that are considered to be easily affected by the above-mentioned factors from the perspectives of the country or region, industry, forms of lending, and other relevant factors, and estimating the impact of inflation overseas.

As a result, an additional reserve for possible loan losses totaling ¥60,000 million was recorded for these portfolios.

3. The estimates of the reserve for possible loan losses related to the impact of the current international situation involving Ukraine

In light of the uncertain business environment caused by the current international situation involving Ukraine, the estimated reserve for possible loan losses associated with the Russia-related credits has been reflected in the consolidated financial statements as follows. The Russia-related credits are mainly related to corporate customers in Russia.

For losses expected to be incurred in connection with individual borrowers based on the impact of economic sanctions imposed by governments of each country and the countermeasures taken by the Russian government, etc., a reserve for possible loan losses is provided by reviewing, as necessary, borrower categories based on the most recent available information. In addition, a reserve for possible loan losses is recorded as a reserve for claims originated in specific overseas countries at an amount deemed necessary in consideration of the political and economic situation in Russia.

In addition, regarding certain funds, including collection of claims from customers in Russia, given the prolonged difficulty in collecting the funds through overseas remittances as a result of the Russian Presidential decree and instructions of the Central Bank of the Russian Federation, the impact of the countermeasures is estimated, and a reserve for possible loan losses is recorded at an amount deemed necessary based on an overall assessment.

As a result, an additional reserve for possible loan losses totaling ¥64,000 million was recorded for such funds.

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4. Recording of extraordinary losses related to the sale of part of SMBC MANUBANK's business and other relevant factors

On March 31, 2026, SMBC MANUBANK (hereinafter, "MANUBANK"), a subsidiary consolidated by the Company based on financial statements prepared as of MANUBANK's fiscal year end of December 31, 2025, entered into an agreement to sell its commercial banking business to Bank of Hope (hereinafter, the "Business Transfer").

(1) Overview of the divestiture

1) Name of the transferee company

Bank of Hope

2) Description of the business to be divested

Commercial banking business of MANUBANK

3) Principal reason for the divestiture

The Company's key management priorities include enhancing capital efficiency and maximizing shareholder value. In the Americas, the Company is pursuing the enhancement of the business portfolio, with a focus on its corporate and investment banking (CIB) and global markets businesses. In line with this strategy, and to further optimize its resources, the Company determined that the continued sustainable growth and long-term continuity of customer service of MANUBANK's commercial banking business—which has provided commercial banking services to wholesale and retail customers primarily in California—would be best achieved under the ownership and management of Bank of Hope.

4) Date of the divestiture (\*)

Completion is scheduled during FY2026

5) Legal form of the divestiture

Business transfer for cash consideration

(\*) The consummation of the Business Transfer is subject to the receipt of required regulatory approvals and the satisfaction of other conditions prior to closing.

(2) Name of the principal reportable segment that included the business to be divested

Global Business Unit

As the difference between MANUBANK's fiscal year-end and the Company's consolidated fiscal year-end does not exceed three months, the Company includes MANUBANK's income statement for the period from January 1, 2025 to December 31, 2025, and its balance sheet as of December 31, 2025, in the Company's consolidated financial statements. The Company recorded, as other extraordinary losses, valuation losses and other related losses on loans expected to be sold in MANUBANK's commercial banking business, as well as losses and other expenses related to the exit from its digital banking business.

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##### [**Table of Contents**](#toc)
**(Notes to consolidated balance sheets)** 

---

| | |
|:---|:---|
| **\*1** | **Stocks and investments in unconsolidated subsidiaries and affiliates**  |

---

Stocks and investments in unconsolidated subsidiaries and affiliates as of March 31, 2025 and 2026 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  Stocks | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,791,771 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,719,138 |
|  Investments |  | 14821 |  | 19785 |

---

Stocks of jointly controlled entities were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;574,338 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;610,987 |

---

---

| | |
|:---|:---|
| **\*2** | **Unsecured loaned securities for which borrowers have the right to sell or pledge**  |

---

The amounts of unsecured loaned securities for which borrowers have the right to sell or pledge as of March 31, 2025 and 2026 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  Japanese government bonds, Japanese local government bonds and stocks in "Securities" | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;292,129 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;191,155 |
|  Trading securities in "Trading assets" |  | 225 |  | 3083 |

---

With respect to the unsecured borrowed securities, securities received under resale agreements, and securities received under securities borrowing transactions with cash collateral, over which the Company has the right to sell or pledge without restrictions, the securities pledged as collateral, the securities lent, and the securities held without being disposed of as of March 31, 2025 and 2026 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  Securities pledged | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,358,574 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,623,977 |
|  Securities lent |  | 75718 |  | 104266 |
|  Securities held without being disposed |  | 13396963 |  | 14279097 |

---

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---

| | |
|:---|:---|
| **\*3** | **Claims under the Banking Act and the Act on Emergency Measures for the Revitalization of Financial Functions**  |

---

Claims under the Banking Act and the Act on Emergency Measures for the Revitalization of Financial Functions as of March 31, 2025 and 2026 were as follows. The claims were items that were recorded under the following items on the consolidated balance sheet: bonds included in "Securities" (limited to bonds for which the redemption of principal and the payment of interest in whole or in part were guaranteed, and that were issued through private placements (under Article 2, Paragraph 3 of the Financial Instruments and Exchange Act)), loans and bills discounted, foreign exchanges, accrued interest and suspense payments included in "Other assets," and customers' liabilities for acceptances and guarantees. If security lending listed in the notes was conducted, such securities (limited to those based on loan for a use agreement or lease agreement) were also included in the claims.

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2026** |
|  Bankrupt and quasi-bankrupt loans | ¥75234 | ¥90585 |
|  Doubtful loans | 454767 | 778253 |
|  Substandard loans | 351693 | 480468 |
| &nbsp;&nbsp;&nbsp;&nbsp; Past due loans (3 months or more) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60843 | 70612 |
| &nbsp;&nbsp;&nbsp;&nbsp; Restructured loans | 290850 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;409855 |
|  Subtotal | 881696 | 1349307 |
|  Normal loans | 130080805 | 137161712 |
|  Total | ¥130962501 | ¥138511020 |

---

Bankrupt and quasi bankrupt loans are claims against borrowers who have fallen into bankruptcy due to reasons such as commencement of bankruptcy proceedings, commencement of reorganization proceedings, or petition for commencement of rehabilitation proceedings, and other similar claims.

Doubtful loans are claims to borrowers who have not yet become bankrupt, but whose financial condition and business performance have deteriorated, making it highly probable that the loan principal cannot be recovered and interest cannot be received in accordance with the contract, excluding bankrupt and quasi-bankrupt loans.

Past due loans (3 months or more) are loans for which the payment of principal or interest has been delayed for three months or more from the day after the agreed-upon payment date, excluding bankrupt and quasi-bankrupt loans and doubtful loans.

Restructured loans are loans on which terms and conditions have been amended in favor of the borrower with the objective of assisting the borrower's financial recovery, such as by reducing or exempting interest, postponing interest payment and principal repayment, and forgiving debts, excluding bankrupt and quasi-bankrupt loans, doubtful loans, and past due loans (3 months or more).

Normal loans are loans that do not fall under the classification of bankrupt and quasi-bankrupt loans, doubtful loans, past due loans (3 months or more), and restructured loans, and where the borrower has no financial or business performance problems.

The amounts of loans presented above were the amounts before deduction of reserve for possible loan losses.

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---

| | |
|:---|:---|
| **\*4** | **Bills discounted**  |

---

Bills discounted are accounted for as financial transactions in accordance with JICPA Industry Committee Practical Guideline No. 24. SMBC and its banking subsidiaries have the right to sell or pledge bank acceptance bought, commercial bills discounted, documentary bills and foreign exchanges bought without restrictions, etc. The face values as of March 31, 2025 and 2026 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;870,770 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;857,856 |

---

---

| | |
|:---|:---|
| **\*5** | **Assets pledged as collateral**  |

---

Assets pledged as collateral as of March 31, 2025 and 2026 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **March 31, 2025** | **Millions of yen** | **March 31, 2026** | **Millions of yen** |
|  Assets pledged as collateral: |  | Assets pledged as collateral: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3790 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets | 1891203 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trading assets | 2914393 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities | 13009593 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities | 8725601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and bills discounted | 10728100 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans and bills discounted | 9118237 |
|  Liabilities corresponding to assets pledged as collateral: |  | Liabilities corresponding to assets pledged as collateral: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables under repurchase agreements | 12670866 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables under repurchase agreements | 10433964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables under securities lending transactions | 1595624 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payables under securities lending transactions | 694498 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowed money | 8331558 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowed money | 6278601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds | 758629 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds | 648530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition to the assets presented above, the following assets were pledged as collateral for cash settlements, and substitution for margins of futures transactions and certain other purposes as of March 31, 2025 and 2026: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition to the assets presented above, the following assets were pledged as collateral for cash settlements, and substitution for margins of futures transactions and certain other purposes as of March 31, 2025 and 2026: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition to the assets presented above, the following assets were pledged as collateral for cash settlements, and substitution for margins of futures transactions and certain other purposes as of March 31, 2025 and 2026: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition to the assets presented above, the following assets were pledged as collateral for cash settlements, and substitution for margins of futures transactions and certain other purposes as of March 31, 2025 and 2026: |
| **March 31, 2025** | **Millions of yen** | **March 31, 2026** | **Millions of yen** |
|  Cash and due from banks | ¥16952 | Cash and due from banks | ¥18293 |
|  Trading assets | 37997 | Trading assets | 75493 |
|  Securities | 7491528 | Securities | 8172931 |
|  Loans and bills discounted | 553201 | Loans and bills discounted | 1279103 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following assets were pledged as collateral for general collateral repurchase agreements based on the subsequent collateral allocation method as of March 31, 2025 and 2026: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following assets were pledged as collateral for general collateral repurchase agreements based on the subsequent collateral allocation method as of March 31, 2025 and 2026: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following assets were pledged as collateral for general collateral repurchase agreements based on the subsequent collateral allocation method as of March 31, 2025 and 2026: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following assets were pledged as collateral for general collateral repurchase agreements based on the subsequent collateral allocation method as of March 31, 2025 and 2026: |
| **March 31, 2025** | **Millions of yen** | **March 31, 2026** | **Millions of yen** |
|  Trading assets | ¥1160447 | Trading assets | ¥1102236 |
|  Securities | 860000 | Securities | 128544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets include collateral money deposited for financial instruments, surety deposits, margins of futures markets and other margins. The amounts for such assets were as follows: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets include collateral money deposited for financial instruments, surety deposits, margins of futures markets and other margins. The amounts for such assets were as follows: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets include collateral money deposited for financial instruments, surety deposits, margins of futures markets and other margins. The amounts for such assets were as follows: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets include collateral money deposited for financial instruments, surety deposits, margins of futures markets and other margins. The amounts for such assets were as follows: |
| **March 31, 2025** | **Millions of yen** | **March 31, 2026** | **Millions of yen** |
|  Collateral money deposited for financial instruments | ¥1925437 | Collateral money deposited for financial instruments | ¥2456251 |
|  Surety deposits | 80006 | Surety deposits | 77341 |
|  Margins of futures markets | 56775 | Margins of futures markets | 71328 |
|  Other margins | 100799 | Other margins | 76688 |

---

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---

| | |
|:---|:---|
| **\*6** | **Commitment line contracts on overdrafts and loans**  |

---

Commitment line contracts on overdrafts and loans are agreements to lend to customers, up to a prescribed amount, as long as there is no violation of any condition established in the contracts. The amounts of unused commitments as of March 31, 2025 and 2026 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  The amounts of unused commitments | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;91,090,878 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,501,918 |
|  The amounts of unused commitments whose original contract terms are within 1 year or unconditionally cancelable at any time |  | 56556826 |  | 63180940 |

---

Since many of these commitments are expected to expire without being drawn upon, the total amount of unused commitments does not necessarily affect actual future cash flows. Many of these commitments include clauses under which applications from customers can be rejected or contract amounts can be reduced in the event that economic conditions change, the necessity for securing claims arises, or other events occur. In addition, at the time of contract, collateral such as premises and securities is requested to be pledged. Moreover, after concluding the contracts, customers' financial positions are monitored regularly based on internal procedures, and necessary measures such as revising contracts and securing claims are taken when such needs arise.

---

| | |
|:---|:---|
| **\*7** | **Land revaluation excess**  |

---

SMBC, a consolidated subsidiary of the Company, revaluated its own land for business activities in accordance with the "Act on Revaluation of Land" (the "Act") (Act No. 34, effective March 31, 1998) and the "Act for Partial Revision of Act on Revaluation of Land" (Act No. 19, effective March 31, 2001). The income taxes corresponding to the net unrealized gains are reported in "Liabilities" as "Deferred tax liabilities for land revaluation," and the Company's share of the net unrealized gains, net of deferred taxes, are reported as "Land revaluation excess" in "Net assets."

Date of the revaluation

March 31, 1998 and March 31, 2002

Method of revaluation (stipulated in Article 3, Paragraph 3 of the Act)

Fair values were determined by applying appropriate adjustments for land shape and timing of appraisal, as well as neighboring sales, to the value based on fixed asset tax valuation, standard land price, and appraisal evaluation conducted by a licensed real estate appraiser or an assistant real estate appraiser, as stipulated respectively by Items 3, 4, or 5 of Article 2 of the "Order for Enforcement of Act on Revaluation of Land" (Cabinet Order No. 119, effective March 31, 1998).

---

| | |
|:---|:---|
| **\*8** | **Accumulated depreciation on tangible fixed assets**  |

---

Accumulated depreciation on tangible fixed assets as of March 31, 2025 and 2026 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  Accumulated depreciation | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;857,729 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;879,580 |

---

---

| | |
|:---|:---|
| **\*9** | **Deferred gain on tangible fixed assets deductible for tax purposes**  |

---

Deferred gain on tangible fixed assets deductible for tax purposes as of March 31, 2025 and 2026 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  Deferred gain on tangible fixed assets deductible for tax purposes | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50,549 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49,262 |
| &nbsp;&nbsp;&nbsp;&nbsp; [The consolidated fiscal year concerned] |  | [—] |  | [—] |

---

—35—

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **\*10** | **Subordinated borrowings**  |

---

The balance of subordinated borrowings included in "Borrowed money" as of March 31, 2025 and 2026 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  Subordinated borrowings | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176,000 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157,000 |

---

---

| | |
|:---|:---|
| **\*11** | **Subordinated bonds**  |

---

The balance of subordinated bonds included in "Bonds" as of March 31, 2025 and 2026 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  Subordinated bonds | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,153,557 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,980,778 |

---

---

| | |
|:---|:---|
| **\*12** | **Guarantee obligations for privately placed bonds**  |

---

The amount of guarantee obligations assumed by banking subsidiaries in respect of privately placed bonds (as defined in Article 2, Paragraph 3 of the Financial Instruments and Exchange Act) included in "Securities" as of March 31, 2025 and 2026 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2025** | **2026** | **2026** |
|  | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,006,735 | ¥ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;789,072 |

---

—36—

------

##### [**Table of Contents**](#toc)
**(Notes to consolidated statements of income)** 

---

| | |
|:---|:---|
| **\*1** | **Other income**  |

---

"Other" in "Other income" for the fiscal years ended March 31, 2025 and 2026 included the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025** | **Millions of yen** | **Millions of yen** | **Year ended March 31, 2026** | **Millions of yen** | **Millions of yen** |
|  Gains on sales of stocks and others | ¥ | 558553 | Gains on sales of stocks and others | ¥ | 521130 |

---

---

| | |
|:---|:---|
| **\*2** | **General and administrative expenses**  |

---

"General and administrative expenses" for the fiscal years ended March 31, 2025 and 2026 included the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025** | **Millions of yen** | **Millions of yen** | **Year ended March 31, 2026** | **Millions of yen** | **Millions of yen** |
|  Salaries and related expenses | ¥ | 924430 | Salaries and related expenses | ¥ | 1012352 |

---

---

| | |
|:---|:---|
| **\*3** | **Other expenses**  |

---

"Other" in "Other expenses" for the fiscal years ended March 31, 2025 and 2026 included the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025** | **Millions of yen** | **Millions of yen** | **Year ended March 31, 2026** | **Millions of yen** | **Millions of yen** |
|  Write-off of loans | ¥ | 151583 | Write-off of loans | ¥ | 176232 |
|  Provision for reserve for losses on interest repayment |  | 141500 |  |  |  |

---

---

| | |
|:---|:---|
| **\*4** | **Other extraordinary losses**  |

---

"Other extraordinary losses" for the fiscal year ended March 31, 2026 included losses related to the sale of part of the U.S. banking subsidiary's business amounting to 46,112 million yen.

---

| | |
|:---|:---|
| **\*5** | **Losses on impairment of fixed assets**  |

---

The differences between the recoverable amounts and the book value of the following assets were recognized as "Losses on impairment of fixed assets," and included in "Extraordinary losses" for the fiscal years ended March 31, 2025 and 2026.

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31, 2025** | | | **Millions of yen** |
| **Area** | <br>**Purpose of use** | <br>**Type** | **Impairment loss** |
|  Tokyo metropolitan area | Idle assets (127 items) | Land and buildings, etc. | ¥1355 |
|  | Corporate assets (1 item) |  | 7 |
|  Kinki area | Idle assets (36 items) | Land and buildings, etc. | 518 |
|  Other areas in Japan | Branches (1 item) | Land and buildings, etc. | 1 |
|  | Idle assets (806 items) |  | 2991 |
|  Europe | Idle assets (1 item) | Building | 644 |
|  — |  | Software, etc. | 1534 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31, 2026** | | | **Millions of yen** |
| **Area** | <br>**Purpose of use** | <br>**Type** | **Impairment loss** |
|  Tokyo metropolitan area | Idle assets (63 items) | Land and buildings, etc. | ¥2074 |
|  | Corporate assets (3 items) |  | 175 |
|  Kinki area | Idle assets (27 items) | Land and buildings, etc. | 897 |
|  Other areas in Japan | Idle assets (14 items) | Land and buildings, etc. | 190 |
|  — |  | Software, etc. | 1158 |

---

—37—

------

##### [**Table of Contents**](#toc)
With regard to land and buildings, etc., each branch, which continuously manages and determines its income and expenses, was the smallest unit of asset group for recognition and measurement of impairment loss of fixed assets. Intangible fixed assets and assets such as corporate headquarters facilities, training facilities, data and system centers, and health and recreational facilities which did not produce independent cash flows at headquarters were treated as corporate assets. Some subsidiaries such as SMBC, a consolidated subsidiary of the Company, utilized management accounting framework to identify corporate assets that were reasonably deemed to be used solely by each business unit as corporate assets, and conducted impairment assessments on a business unit basis together with other related fixed assets.

With regard to idle assets, the assets group for recognition and measurement of impairment loss was each individual property level. The carrying amounts of idle assets were reduced to their recoverable amounts, and the reduced amounts were included in "Extraordinary losses" as "Losses on impairment of fixed assets," if there were indicators that the invested amounts might not be recoverable. The recoverable amount was calculated using net realizable value, which was basically determined by subtracting the expected disposal cost from the real estate appraisal value.

With regard to software, etc., asset group for recognition and measurement of impairment loss is mainly each consolidated subsidiary.

—38—

------

##### [**Table of Contents**](#toc)
**(Notes to consolidated statements of comprehensive income)** 

---

| | |
|:---|:---|
| **\*1** | **Reclassification adjustments and tax effect of other comprehensive income**  |

---

---

| | | |
|:---|:---|:---|
| **Year ended March 31** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31** | **2025** | **2026** |
|  Net unrealized gains (losses) on other securities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amount arising during the fiscal year | ¥18574 | ¥885720 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments | (547986) | (471132) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Before adjustments to income taxes and tax effect | (529411) | 414587 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes and tax effect | 108966 | (155139) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on other securities | (420445) | 259448 |
|  Net deferred gains (losses) on hedges: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amount arising during the fiscal year | (571765) | (497861) |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments | 428236 | 301148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Before adjustments to income taxes and tax effect | (143529) | (196712) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes and tax effect | 43808 | 63731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net deferred gains (losses) on hedges | (99721) | (132981) |
|  Land revaluation excess: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amount arising during the fiscal year |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Before adjustments to income taxes and tax effect |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes and tax effect |  | (776) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land revaluation excess |  | (776) |
|  Foreign currency translation adjustments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amount arising during the fiscal year | (14765) | 325502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments | (4171) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Before adjustments to income taxes and tax effect | (18937) | 325502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes and tax effect |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (18937) | 325502 |
|  Remeasurements of defined benefit plans: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amount arising during the fiscal year | 34898 | 253309 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments | (40363) | (64065) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Before adjustments to income taxes and tax effect | (5464) | 189243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes and tax effect | 2644 | (64108) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remeasurements of defined benefit plans | (2819) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125135 |
|  Share of other comprehensive income of equity method affiliates: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Amount arising during the fiscal year | 73638 | (25264) |
| &nbsp;&nbsp;&nbsp;&nbsp; Reclassification adjustments | (6041) | (6801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Before adjustments to income taxes and tax effect | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67596 | (32065) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes and tax effect |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share of other comprehensive income of equity method affiliates | 67596 | (32065) |
|  Total other comprehensive income | ¥(474327) | ¥544262 |

---

—39—

------

##### [**Table of Contents**](#toc)
**(Notes to consolidated statements of changes in net assets)** 

**Fiscal year ended March 31, 2025** 

**1. Type and number of shares issued and treasury stock** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025** | **Number of shares** | **Number of shares** | **Number of shares** | **Number of shares** | |
| **Year ended March 31, 2025** | **At the beginning<br>of the fiscal year** | **Increase** | **Decrease** | **At the end**<br>**of the fiscal year** | <br> **Notes** |
|  Shares issued |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock | 1337529084 | 2616696274 | 69779900 | 3884445458 | 12 |
|  Total | 1337529084 | 2616696274 | 69779900 | 3884445458 |  |
|  Treasury stock |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock | 23587866 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56937950 | 69873968 | 10651848 | 345 |
|  Total | 23587866 | 56937950 | 69873968 | 10651848 |  |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | The increase of 2,616,696,274 shares in the total number of shares issued comprises the increase of 341,902 shares due to the issuance of new shares as stock-based compensation and the increase of 2,616,354,372 shares due to the stock split. |
|  | 2. | The decrease of 69,779,900 shares in the total number of shares issued was due to cancellation of treasury stock. |
|  | 3. | The increase of 56,937,950 shares in the number of treasury common stock comprises the increase of 26,150 shares due to the purchase of fractional shares, the increase of 149,000 shares due to the acquisition of the Company's shares held by the stock grant trust for employees ("the Trust"), the increase of 49,647,900 shares due to the repurchase of treasury stock, and the increase of 7,114,900 shares due to the stock split. |
|  | 4. | The decrease of 69,873,968 shares in the number of treasury common stock comprises the decrease of 93,968 shares due to the sale of fractional shares as well as exercise of stock options, the decrease of 100 shares due to the sale of the Company's shares held by the Trust, and the decrease of 69,779,900 shares due to the cancellation of treasury stock. |
|  | 5. | The number of treasury common stock at the end of the fiscal year was 10,651,848 shares, including 446,700 shares of the Company held by the Trust. |

---

**2. Information on stock acquisition rights** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025** | | | **Number of shares** | **Number of shares** | **Number of shares** | **Number of shares** | **Millions of yen** | |
| **Year ended March 31, 2025** | <br>**Details of stock<br> acquisition rights**  |<br>**Type of shares** | **At the beginning of<br>the fiscal year** | **Increase** | **Decrease** | **At the end of<br>the fiscal year** | **At the end of<br>the fiscal year** | <br> **Notes** |
|  The Company | Stock acquisition rights<br>as stock options |  |  |  |  |  | ¥767 |  |
| Total |  |  |  |  |  |  | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;767 |  |

---

**3. Information on dividends** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year |
| **Date of resolution** | **Type of shares** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** |
| **Date of resolution** | **Type of shares** | **Cash<br> dividends** | **Cash dividends<br>per share** | **Record date** | **Record date** | **Effective date** |
|  Ordinary General Meeting of Shareholders held on June 27, 2024 | Common stock | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;177382 | ¥135 | March 31, 2024 | March 31, 2024 | June 28, 2024 |
|  Meeting of the Board of Directors held on November 14, 2024 | Common stock | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;234858 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;180 | September 30, 2024 | September 30, 2024 | December 3, 2024 |
| <br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year | <br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year | <br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year | <br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year | <br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year | <br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year | <br> &nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year |
| **Date of resolution** | **Type of shares** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** |
| **Date of resolution** | **Type of shares** | **Cash<br> dividends** | **Source of<br>dividends** | **Cash dividends<br>per share** | **Record date** | **Effective date** |
|  Ordinary General Meeting of Shareholders held on June 27, 2025 | Common stock | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;240202 | Retained<br>earnings | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62 | March 31, 2025 | June 30, 2025 |

---

—40—

------

##### [**Table of Contents**](#toc)
**Fiscal year ended March 31, 2026** 

**1. Type and number of shares issued and treasury stock** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2026** | **Number of shares** | **Number of shares** | **Number of shares** | **Number of shares** | |
| **Year ended March 31, 2026** | **At the beginning<br>of the fiscal year** | **Increase** | **Decrease** | **At the end**<br>**of the fiscal year** | <br> **Notes** |
|  Shares issued |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock | 3884445458 | 513282 | 57460600 | 3827498140 | 12 |
|  Total | 3884445458 | 513282 | 57460600 | 3827498140 |  |
|  Treasury stock |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock | 10651848 | 57636578 | 57656307 | 10632119 | 345 |
|  Total | 10651848 | 57636578 | 57656307 | 10632119 |  |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | The increase of 513,282 shares in the total number of shares issued was due to the issuance of new shares as stock-based compensation. |
|  | 2. | The decrease of 57,460,600 shares in the total number of shares issued was due to cancellation of treasury stock. |
|  | 3. | The increase of 57,636,578 shares in the number of treasury common stock comprises the increase of 22,978 shares due to the purchase of fractional shares and the acquisition, without compensation, of restricted shares related to stock-based compensation, the increase of 153,000 shares due to the acquisition of the Company's shares held by the stock grant trust for employees ("the Trust"), and the increase of 57,460,600 shares due to the repurchase of treasury stock. |
|  | 4. | The decrease of 57,656,307 shares in the number of treasury common stock comprises the decrease of 170,507 shares due to the sale of fractional shares as well as the exercise of stock options, the decrease of 25,200 shares due to the sale and delivery of the Company's shares held by the Trust, and the decrease of 57,460,600 shares due to the cancellation of treasury stock. |
|  | 5. | The number of treasury common stock at the end of the fiscal year was 10,632,119 shares, including 574,500 shares of the Company held by the Trust. |

---

**2. Information on stock acquisition rights** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2026** | | | **Number of shares** | **Number of shares** | **Number of shares** | **Number of shares** | **Millions of yen** | |
| **Year ended March 31, 2026** | <br>**Details of stock<br> acquisition rights**  |<br>**Type of shares** | **At the beginning of<br>the fiscal year** | **Increase** | **Decrease** | **At the end of<br>the fiscal year** | **At the end of<br>the fiscal year** |<br> **Notes** |
|  The Company | Stock acquisition rights <br>as stock options |  |  |  |  |  | ¥594 |  |
|  Total |  |  |  |  |  |  | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;594 |  |

---

**3. Information on dividends** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year | &nbsp;&nbsp;&nbsp;&nbsp;(1) Dividends paid in the fiscal year |
| **Date of resolution** | **Type of shares** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** |
| **Date of resolution** | **Type of shares** | **Cash<br> dividends** | **Cash dividends<br>per share** | **Record date** | **Effective date** |
|  Ordinary General Meeting of Shareholders held on June 27, 2025 | Common stock | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;240202 | ¥62 | March 31, 2025 | June 30, 2025 |
|  Meeting of the Board of Directors held on November 14, 2025 | Common stock | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;300089 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;78 | September 30, 2025 | December 2, 2025 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | Cash dividends declared at the Ordinary General Meeting of Shareholders held on June 27, 2025 included ¥27 million of cash dividends on the Company's shares held by the Trust. |
|  | 2. | Cash dividends declared at the Meeting of the Board of Directors held on November 14, 2025 included ¥45 million of cash dividends on the Company's shares held by the Trust. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Dividends with a record date that falls in the current fiscal year but whose effective date falls in the next fiscal year

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Date of resolution** | **Type of shares** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** | **Millions of yen, except per share amount** |
| **Date of resolution** | **Type of shares** | **Cash<br> dividends** | **Source of<br>dividends** | **Cash dividends<br>per share** | **Record date** | **Effective date** |
|  Ordinary General Meeting of Shareholders scheduled for June 26, 2026 (Scheduled to be declared) | Common stock | ¥301577 | Retained<br>earnings | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;79 | March 31, 2026 | June 29, 2026 |

---

Note: Cash dividends to be declared at the Ordinary General Meeting of Shareholders scheduled for June 26, 2026 will include ¥45 million of cash dividends on the Company's shares held by the Trust.

—41—

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##### [**Table of Contents**](#toc)
**(Notes to consolidated statements of cash flows)** 

---

| | |
|:---|:---|
| **\*1** | **The reconciliation of balance of "Cash and cash equivalents" at the end of the fiscal year and the amounts of items stated on the consolidated balance sheets**  |

---

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2026** |
|  Cash and due from banks | ¥75590583 | ¥73696930 |
|  Interest earning deposits with banks <br>(excluding the deposit with the Bank of Japan) | (9402908) | (14265156) |
|  Cash and cash equivalents | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;66187674 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59431773 |

---

—42—

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##### [**Table of Contents**](#toc)
**(Notes to lease transactions)** 

**1. Finance leases** 

(1) Lessee side

1) Lease assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tangible fixed assets

Tangible fixed assets mainly consisted of branches and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Intangible fixed assets

Intangible fixed assets were software.

2) Depreciation method of lease assets

Depreciation method of lease assets is reported in "(Significant accounting policies for preparing consolidated financial statements) 4. Accounting policies (4) Depreciation."

(2) Lessor side

1) Breakdown of lease investment assets

---

| | | |
|:---|:---|:---|
| **March 31** | **Millions of yen** | **Millions of yen** |
| **March 31** | **2025** | **2026** |
|  Lease receivables | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;292143 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;294783 |
|  Residual value | 15097 | 8188 |
|  Unearned interest income | (76041) | (71542) |
|  Total | ¥231199 | ¥231429 |

---

2) The scheduled collections of lease payments receivable related to lease investment assets were as follows:

---

| | | |
|:---|:---|:---|
| **March 31** | **Millions of yen** | **Millions of yen** |
| **March 31** | **2025** | **2026** |
|  Within 1 year | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62488 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58849 |
|  More than 1 year to 2 years | 29003 | 67094 |
|  More than 2 years to 3 years | 43807 | 27987 |
|  More than 3 years to 4 years | 9981 | 44244 |
|  More than 4 years to 5 years | 51132 | 8509 |
|  More than 5 years | 95729 | 88098 |
|  Total | ¥292143 | ¥294783 |

---

—43—

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##### [**Table of Contents**](#toc)
**2. Operating leases** 

(1) Lessee side

Future minimum lease payments on operating leases that were not cancelable were as follows:

---

| | | |
|:---|:---|:---|
| **March 31** | **Millions of yen** | **Millions of yen** |
| **March 31** | **2025** | **2026** |
|  Due within 1 year | ¥37326 | ¥40312 |
|  Due after 1 year | 229724 | 223394 |
|  Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;267051 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;263707 |

---

(2) Lessor side

Future minimum lease payments on operating leases that were not cancelable were as follows:

---

| | | |
|:---|:---|:---|
| **March 31** | **Millions of yen** | **Millions of yen** |
| **March 31** | **2025** | **2026** |
|  Due within 1 year | ¥206 | ¥211 |
|  Due after 1 year | 688 | 482 |
|  Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;894 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;694 |

---

—44—

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##### [**Table of Contents**](#toc)
**(Notes to financial instruments)** 

**1. Status of financial instruments** 

(1) Policies on financial instruments

The Group conducts banking and other financial services such as leasing, securities, consumer finance, system development, and information processing. Its banking business includes deposit taking, lending, securities trading and investment, remittance and transfer, foreign exchange, bond subscription agent, trust business, and over-the-counter sales of securities investment trusts and insurance products.

These services entail holding financial assets such as loans and bills discounted, bonds, and stocks. Meanwhile, the Group raises funds through deposit taking, borrowing, bond offering, etc. Furthermore, it undertakes derivative transactions to meet customers' hedging needs to control market risk associated with deposit taking and lending ("ALM purposes"), and to make profit on short-term fluctuations in interest rates, foreign exchange rates, etc. ("Trading purposes"). At SMBC, the Company's major consolidated subsidiary, derivative transactions for ALM purposes are undertaken by the Treasury Department and the Global Investment Department, while derivative transactions for trading purposes are undertaken by the Global Markets Trading Department (derivative transactions for both ALM and Trading purposes are undertaken by the Global Markets & Treasury Department, Asia Pacific Division in the Asia Pacific region, the Global Markets & Treasury Department, Europe, Middle East and Africa Division in the Europe, Middle East and Africa region, and the Global Markets & Treasury Department, Americas Division in the Americas region).

(2) Details of financial instruments and associated risks

1) Financial assets

The main financial assets held by the Group include loans to foreign and domestic companies and domestic individuals, and securities such as bonds (government and corporate bonds) and stocks (foreign and domestic stocks), etc. Bonds such as government bonds are held for ALM purposes, as well as Trading and held-to-maturity purposes. Stocks are held mainly for strategic investment purposes. These assets expose the Group to credit risk, market risk, and liquidity risk. Credit risk is the risk of loss arising from nonperformance of obligations by the borrower or issuer due to factors such as deterioration in the borrower's/issuer's financial conditions. Market risk is the risk stemming from fluctuations in interest rates, exchange rates, or share prices. Liquidity risk is the risk arising from difficulty executing transactions in desired quantities at appropriate prices due to low market liquidity. These risks are properly monitored and managed based on "(3) Risk management framework for financial instruments" below.

2) Financial liabilities

Financial liabilities of the Group include borrowed money and bonds, etc. in addition to deposits. Deposits mainly comprise deposits of domestic and foreign companies and domestic individuals. Borrowed money and bonds include subordinated borrowings and subordinated bonds with special clauses specifying that the repayment order of borrowing or bond subordinates to other borrowings or bonds. Also, financial liabilities, like financial assets, expose the Group to not only market risk but also funding liquidity risk: the risk of the Group not being able to raise funds due to market turmoil, deterioration in the Group's creditworthiness or other factors. These risks are properly monitored and managed based on "(3) Risk management framework for financial instruments" below.

—45—

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##### [**Table of Contents**](#toc)
3) Derivative transactions

Derivatives handled by the Group include foreign exchange futures; futures, forwards, swaps and options related to interest rates, currencies, equities, bonds and commodities; and credit and weather derivatives.

Major risks associated with derivatives include market risk, liquidity risk, and credit risk arising from nonperformance of contractual obligations due to deterioration in the counterparty's financial conditions. These risks are properly monitored and managed based on "(3) Risk management framework for financial instruments" below.

Hedge accounting is applied to derivative transactions executed for ALM purposes, as necessary. Hedging instruments, hedged items, hedging policy and hedging method to assess the effectiveness of the hedge are described in "(Significant Accounting Policies for Preparing Consolidated Financial Statements), 4. Accounting policies, (17) Hedge accounting."

(3) Risk management framework for financial instruments

The fundamental matters on risk management for the entire Group are set forth in "Policies on Comprehensive Risk Management." The Company's Management Committee establishes the basic risk management policy for the entire Group, based on the regulations, which is then approved by the Board of Directors. Each Group company has a risk management system based on the characteristics of its particular businesses and in accordance with the basic policy. Furthermore, the Group CRO is established to monitor, manage, and assess risk management across the Group unitarily and implement appropriate risk management. The Company is sharing information on group-wide risk management and strengthening related systems through the Group CRO Committee, which consists of the Group CRO and risk management representatives from strategically important group companies.

1) Management of credit risk

All group companies follow the fundamental principles established by the Group to manage credit risk on a group-wide basis. Each Group company must comprehensively manage credit risk according to the nature of its business, and manage credit risk of individual loans and credit portfolios quantitatively and using consistent standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Credit risk management system

At the Company, the Group CRO formulates credit risk management policies each year based on the group-wide basic policies for risk management. Meanwhile, the Credit & Investment Planning Department is responsible for the comprehensive management of credit risk. This department drafts and administers credit risk regulations, including the Group credit policies, manages non-performing loans, and performs other aspects of credit portfolio management. The Company has also established the Credit Risk Committee to serve as a body for deliberating on matters related to group-wide credit portfolios.

At SMBC, the Company's major consolidated subsidiary, the Credit & Investment Planning Department within the Risk Management Unit furnishes the credit risk management system and is thus responsible for the comprehensive management of credit risk. This department establishes, revises or abolishes credit policies, the internal rating system, credit authority regulations, credit application regulations, and manages non-performing loans and other aspects of credit portfolio management. The department also cooperates with the Corporate Risk Management Department and Risk Management Information Department in quantifying credit risk (risk capital and risk-weighted assets) and controls SMBC's entire credit risk. Moreover, the Credit & Investment Planning Department works to stabilize SMBC's overall credit portfolio through selling credit derivatives and loan claims.

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##### [**Table of Contents**](#toc)
The credit department in charge, in cooperation with branches, conducts credit risk assessments and manages credit portfolios within each credit department's jurisdiction. Credit approval authority is determined based on the credit amount and internal ratings, while the credit department focuses on the analysis and management of customers and transactions with relatively high credit risk. The Credit Administration Department is mainly responsible for formulating and implementing measures to reduce the exposure of non-performing loans of borrowers classified as potentially bankrupt or lower. Through industrial and sector-specific surveys and studies of individual companies, the Corporate Research Department works to form an accurate idea of the condition of major borrower companies and identify those with potentially troubled credit positions at an early stage.

Moreover, the Credit Risk Committee, a cross-departmental consultative body, rounds out SMBC's oversight system for undertaking flexible and efficient control of credit risks, and ensuring the overall soundness of SMBC's loan operations.

In addition to the above, the Internal Audit Unit, operating independently of the business units, audits asset quality, the accuracy of gradings and self-assessment, and the state of the credit risk management, and reports the results directly to the Management Committee and the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Method of credit risk management

The Company properly manages the credit risk inherent in individual loans and the entire portfolio by assessing and quantifying the credit risk of each borrower/loan using the internal rating system. In addition to management of individual loans through credit screening and monitoring, it manages the credit portfolio as described below in order to secure and improve the credit portfolio's soundness and medium-term profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Appropriate risk-taking within capital

To take risks within the acceptable level of capital, the Company sets upper limits for overall risk capital, which is an indicator of the risk appetite reflecting soundness, based on the risk appetite and portfolio plan of each business unit and monitors credit risk capital as a breakdown of overall risk capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Controlling concentration of risk

Because concentration of credit risk in an industry or corporate group has the potential to impair the Company's capital significantly, the Company implements measures to prevent excessive concentration of loan in a single industry and to control large exposure to individual borrowers by setting maximum loan amounts and conducting loan reviews thoroughly. To manage country risk, the Company also has credit limit guidelines based on each country's creditworthiness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Researching borrowers more rigorously and balancing risk and returns

The Group rigorously researches borrower companies' actual conditions. The Group runs credit operations on the basic principle of earning returns that are commensurate with the credit risk involved, and makes every effort to reduce credit and capital costs as well as general and administrative expenses.

—47—

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Preventing and reducing non-performing loans

With respect to non-performing loans and potential non-performing loans, the Company conducts regular loan reviews to clarify handling policies and action plans, enabling it to promptly implement measures to prevent deterioration in borrowers' business conditions, support business recoveries, collect loans, and enhance loan security.

In regard to financial products, such as investments in certain funds, securitized products, and credit derivatives, that bear indirect risk arising from underlying assets such as bonds and loan obligations are considered to be exposed to both credit risk from the underlying assets as well as "market risk" and "liquidity risk" that arise from their trading as financial products. This is referred to as a marketable credit risk. For these types of products, the Company manages credit risk by analyzing and assessing the characteristics of the underlying assets, but, for the sake of complete risk management, the Company also applies the methods for management of market and liquidity risks. In addition, the Company has established guidelines based on the characteristics of these types of risks and appropriately manages the risk of losses.

In regard to credit risk of derivative transactions, the potential exposure based on the market price is regularly calculated and properly managed. When the counterparty is a financial institution with which the Company frequently conducts derivative transactions, measures such as a close-out netting provision, which provide offsetting credit exposures between two parties in a single net payment from one party to the other in case of bankruptcy or other default event, are implemented to reduce credit risk.

2) Management of market and liquidity risks

The Company manages market and liquidity risks across the entire Group by setting allowable risk limits; ensuring the transparency of the risk management process; and clearly separating front-office, middle-office, and back-office operations to establish a highly effective system of mutual checks and balances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Market and liquidity risk management systems

In accordance with the basic risk management policy for the entire Group decided upon by the Management Committee, the Company determines important matters relating to the management of market and liquidity risks, such as basic policies and risk limits, in order to manage these risks. The ALM Committee meets four times a year, in principle, to report on the state of the market and liquidity risk management and to discuss ALM operation policies. The Corporate Risk Management Department and Risk Management Information Department, which are independent from the business units that directly handle market transactions, manage market and liquidity risks in an integrated manner. These departments not only monitor the current risk situations but also report regularly to the Management Committee and the Audit Committee. Furthermore, the ALM Committee at SMBC, the Company's major consolidated subsidiary, meets on a monthly basis to examine reports on the state of observance of limits on market and liquidity risks and to discuss ALM operation policies.

In addition, the Internal Audit Department, which is independent of other departments, periodically performs comprehensive internal audits to verify that the risk management framework is properly functioning and reports the audit results to the Management Committee and the Audit Committee.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Market and liquidity risk management methodology

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Market risk management

The Company manages market risk by setting maximum loss and VaR (value at risk: maximum potential loss that may be incurred to a specific financial instrument for a given probability) within the market risk capital limit, which is set taking into account stockholders' equity and other factors in accordance with the business operating policies.

The Company uses the historical simulation method (a method for estimating the maximum loss by running simulations of changes in profit and loss on market fluctuations scenarios based on historical data) to measure VaR. Regarding banking activities (activities for generating profit through management of interest rates, terms, and other aspects such as loans and bonds in assets, deposits in liabilities) and trading activities (activities for generating profit by taking advantage of short-term fluctuations in market values and differences in value among markets), the Company calculates the maximum loss that may occur as a result of market fluctuations in 1 day with a probability of 1% based on 4 years of historical observation. With regard to the holding of shares (such as listed shares) for the purpose of strategic investment, the Company calculates the maximum loss that may occur as a result of market fluctuations in 1 year with a probability of 1% based on 10 years of historical observation.

Regarding risks associated with foreign exchange rates, interest rates, equity risk, option prices and other market risk factors, the Company manages such risks by setting a maximum limit on the indicator suited for each market risk factor such as BPV (basis point value: denotes the change in fair value of a financial instrument resulting from a 0.01 percentage-point change in the yield).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quantitative information on market risks

As of March 31, 2026, the total VaR of SMBC and its major consolidated subsidiaries was ¥89.3 billion for the banking activities, ¥7.9 billion for the trading activities and ¥1,337.5 billion for the holding of shares (such as listed shares) for the purpose of strategic investment.

However, it should be noted that these figures are statistical in nature, which are subject to changes depending on assumptions and calculation methods, and may not fully capture the risk of future market conditions fluctuating more drastically than in the past. In addition, during the fiscal year ended March 31, 2026, the calculation methodology was improved in order to better reflect the Group's risk profile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Liquidity risk management

The Company manages liquidity risk based on the framework of "setting risk appetite measures" and "establishing contingency plans." Risk appetite measures are quantitative benchmarks that select the types and indicate the levels of risk that the Company is willing to take on or tolerate. As an example, the Company sets a lower limit on the number of days over which cash flows can be maintained under stress conditions, such as deposit outflows, in order to secure funding sources that do not fall below the benchmark and to avoid excessive reliance on short-term funding. In addition, the Company develops contingency plans consisting of instructions, reporting lines, and action plans for emergencies.

Moreover, to manage the liquidity risk of marketable instruments, derivative transactions, etc., the Company has trading limits for each business office classified by currency, instrument, transaction period, etc. With regard to financial futures, etc., risks are managed by restricting positions to within a certain percentage of open interest in the entire market.

(4) Supplementary explanations on matters concerning fair values of financial instruments

The fair values of financial instruments include values based on market prices and, where market prices are not available, values reasonably determined. In determining such values, certain assumptions are used, and such values may differ if different assumptions are applied.

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##### [**Table of Contents**](#toc)
**2. Matters concerning fair value of financial instruments and breakdown by input level** 

The amounts on the consolidated balance sheet, the fair values of financial instruments as well as the difference between them, and fair value by input level are as follows.

The amounts shown in the following tables do not include stocks with no market price, etc., and investments in partnerships (refer to Note 3).

The fair values of financial instruments are classified into the following three levels depending on the observability and significance of the inputs used in the fair value measurement.

Level 1: Fair value determined based on the (unadjusted) quoted price in an active market for the same asset or liability

Level 2: Fair value determined based on directly or indirectly observable inputs other than Level 1 inputs

Level 3: Fair value determined based on significant unobservable inputs

When multiple inputs that have a significant impact on the fair value measurement are used, the financial instrument is classified into the lowest level of the fair value hierarchy within which those inputs are categorized.

—50—

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##### [**Table of Contents**](#toc)
**(1) Financial assets and liabilities at fair value on the consolidated balance sheet** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Consolidated**<br>**balance sheet amount** | **Consolidated**<br>**balance sheet amount** | **Consolidated**<br>**balance sheet amount** | **Consolidated**<br>**balance sheet amount** |
| <br>**March 31, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Monetary claims bought | ¥— | ¥114591 | ¥381139 | ¥495731 |
|  Trading assets | 4801509 | 1295209 | 43952 | 6140671 |
|  Money held in trust |  | 32272 |  | 32272 |
|  Securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities <sup>\*1</sup> | 23919223 | 14017061 | 6276 | 37942561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | 2870342 | 795 |  | 2871138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 11180546 |  |  | 11180546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 787139 | 35435 |  | 822574 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds |  | 1884079 | 6276 | 1890356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign stocks | 1527602 | 220785 |  | 1748387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign bonds | 7078505 | 10346238 | 0 | 17424744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 475086 | 1529726 |  | 2004813 |
|  Total assets | ¥28720732 | ¥15459135 | ¥431368 | ¥44611236 |
|  Trading liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading securities sold short | ¥4507157 | ¥328309 | ¥— | ¥4835466 |
|  Total liabilities | ¥4507157 | ¥328309 | ¥— | ¥4835466 |
|  Derivative transactions <sup>\*2, 3</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate derivatives | ¥(12073) | ¥(221335) | ¥4121 | ¥(229287) |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency derivatives | 2496 | (314414) | 20476 | (291440) |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity derivatives | 14522 | 119839 | 4086 | 138449 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bond derivatives | 123 | 304 |  | 428 |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivatives | 10 | 1136 |  | 1147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit derivative transactions |  | (9086) | 3203 | (5883) |
|  Total derivative transactions | ¥5081 | ¥(423556) | ¥31888 | ¥(386585) |

---

---

| | |
|:---|:---|
| \*1 | The amounts of investment trusts that fall under the classification of Other securities are included in "Other" in the table above.  |

---

---

| | |
|:---|:---|
| \*2 | The amounts collectively represent the derivative transactions which are recorded as "Trading assets," "Trading liabilities," "Other assets," and "Other liabilities." Debts and credits arising from derivative transactions are presented on a net basis, with net debt presented in round brackets.  |

---

\*3 With respect to derivative transactions applying hedge accounting, ¥(1,728,482) million was recorded on the consolidated balance sheet.

—51—

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##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Consolidated**<br>**balance sheet amount** | **Consolidated**<br>**balance sheet amount** | **Consolidated**<br>**balance sheet amount** | **Consolidated**<br>**balance sheet amount** |
| <br>**March 31, 2026** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Monetary claims bought | ¥— | ¥78579 | ¥423424 | ¥502003 |
|  Trading assets | 5351325 | 1473182 | 7862 | 6832370 |
|  Money held in trust |  | 36902 |  | 36902 |
|  Securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities <sup>\*1</sup> | 19324943 | 13362610 | 2194 | 32689748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stocks | 3289823 | 843 |  | 3290666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 5476427 |  |  | 5476427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 655641 | 27393 |  | 683034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds |  | 1395046 | 2194 | 1397240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign stocks | 1346298 | 184100 |  | 1530399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign bonds | 8094298 | 10440490 |  | 18534788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 462454 | 1314736 |  | 1777190 |
|  Total assets | ¥24676268 | ¥14951275 | ¥433480 | ¥40061025 |
|  Trading liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading securities sold short | ¥3793686 | ¥336904 | ¥— | ¥4130590 |
|  Total liabilities | ¥3793686 | ¥336904 | ¥— | ¥4130590 |
|  Derivative transactions <sup>\*2, 3</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate derivatives | ¥10604 | ¥(645499) | ¥6509 | ¥(628384) |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency derivatives | (12317) | (431288) | 35172 | (408434) |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity derivatives | 20268 | (1515) | 3091 | 21845 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bond derivatives | (1956) | (177) |  | (2134) |
| &nbsp;&nbsp;&nbsp;&nbsp; Commodity derivatives | 1444 | (1606) |  | (162) |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit derivative transactions |  | (6540) | 3819 | (2721) |
|  Total derivative transactions | ¥18043 | ¥(1086628) | ¥48593 | ¥(1019991) |

---

---

| | |
|:---|:---|
| \*1 | The amounts of investment trusts that fall under the classification of Other securities are included in "Other" in the table above.  |

---

---

| | |
|:---|:---|
| \*2 | The amounts collectively represent the derivative transactions which are recorded as "Trading assets," "Trading liabilities," "Other assets," and "Other liabilities." Debts and credits arising from derivative transactions are presented on a net basis, with net debt presented in round brackets.  |

---

\*3 With respect to derivative transactions applying hedge accounting, ¥(1,846,621) million was recorded on the consolidated balance sheet.

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##### [**Table of Contents**](#toc)
**(2) Financial assets and liabilities which are not stated at fair value on the consolidated balance sheet** 

Cash and due from banks, Call loans and bills bought, Receivables under resale agreements, Receivables under securities borrowing transactions, Foreign exchanges, Call money and bills sold, Payable under repurchase agreements, Payable under securities lending transactions, Commercial papers, Short-term bonds payable, and Due to trust account are not included in the following tables, as they are mostly short-term in nature and their fair values are considered to approximate their carrying amounts.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Fair value** | **Fair value** | **Fair value** | **Fair value** | **Consolidated<br>balance sheet<br>amount** | **Difference** |
| <br>**March 31, 2025** | **Level 1** | **Level 2** | **Level 3** | **Total** | **Consolidated<br>balance sheet<br>amount** | **Difference** |
|  Monetary claims bought<sup>\*</sup> | ¥— | ¥— | ¥5171196 | ¥5171196 | ¥5119390 | ¥51806 |
|  Securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bonds classified as held-to-maturity | 255558 | 12681 |  | 268240 | 274414 | (6174) |
|  Loans and bills discounted |  |  |  |  | 111136239 |  |
|  Reserve for possible loan losses<sup>\*</sup> |  |  |  |  | (521037) |  |
|  |  |  | 112493608 | 112493608 | 110615201 | 1878406 |
|  Lease receivables and investment assets<sup>\*</sup> |  |  | 227076 | 227076 | 230549 | (3473) |
|  Total assets | ¥255558 | ¥12681 | ¥117891881 | ¥118160121 | ¥116239556 | ¥1920565 |
|  Deposits | ¥— | ¥172036099 | ¥— | ¥172036099 | ¥171498651 | ¥537448 |
|  Negotiable certificates of deposit |  | 17262189 |  | 17262189 | 17175391 | 86798 |
|  Borrowed money |  | 11176826 | 53333 | 11230159 | 11355209 | (125049) |
|  Bonds |  | 11342431 | 1863908 | 13206339 | 13352392 | (146052) |
|  Total liabilities | ¥— | ¥211817547 | ¥1917241 | ¥213734789 | ¥213381644 | ¥353145 |

---

\* General reserves and special reserves corresponding to loans were deducted. The reserves for possible loan losses on "Monetary claims bought" and "Lease receivables and investment assets" were deducted directly from consolidated balance sheet amounts since they were immaterial. 

—53—

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##### [**Table of Contents**](#toc)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Fair value** | **Fair value** | **Fair value** | **Fair value** | **Consolidated<br>balance sheet<br>amount** | **Difference** |
| <br>**March 31, 2026** | **Level 1** | **Level 2** | **Level 3** | **Total** | **Consolidated<br>balance sheet<br>amount** | **Difference** |
|  Monetary claims bought<sup>\*</sup> | ¥— | ¥— | ¥5636936 | ¥5636936 | ¥5573654 | ¥63282 |
|  Securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bonds classified as held-to-maturity | 4394246 | 82419 |  | 4476665 | 4655314 | (178649) |
|  Loans and bills discounted |  |  |  |  | 117629215 |  |
|  Reserve for possible loan losses<sup>\*</sup> |  |  |  |  | (619596) |  |
|  |  |  | 118242352 | 118242352 | 117009618 | 1232733 |
|  Lease receivables and investment assets<sup>\*</sup> |  |  | 230908 | 230908 | 231028 | (120) |
|  Total assets | ¥4394246 | ¥82419 | ¥124110197 | ¥128586862 | ¥127469616 | ¥1117246 |
|  Deposits | ¥— | ¥185735328 | ¥— | ¥185735328 | ¥185674241 | ¥61087 |
|  Negotiable certificates of deposit |  | 15629728 |  | 15629728 | 15667132 | (37403) |
|  Borrowed money |  | 9273276 | 79164 | 9352441 | 9370996 | (18555) |
|  Bonds |  | 12705278 | 2333940 | 15039218 | 15369164 | (329945) |
|  Total liabilities | ¥— | ¥223343613 | ¥2413104 | ¥225756717 | ¥226081534 | ¥(324816) |

---

\* General reserves and special reserves corresponding to loans were deducted. The reserves for possible loan losses on "Monetary claims bought" and "Lease receivables and investment assets" were deducted directly from consolidated balance sheet amounts since they were immaterial. 

—54—

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##### [**Table of Contents**](#toc)
(Note 1) Description of the valuation techniques and inputs used to measure fair value

<u>Assets</u>

<u>Monetary claims bought</u>

The fair values of subordinated trust beneficiary interests related to securitized housing loans included in monetary claims bought are determined by estimating future cash flows using the probability of default, loss given default and prepayment rate, and by deducting the value of senior beneficial interests, etc. from the value of the underlying housing loans. In principle, the fair values of other transactions are based on methods similar to those applied to loans and bills discounted.

These transactions are mainly classified as Level 3.

<u>Trading assets</u>

The fair values of bonds and other securities held for trading purposes are, in principle, based on their market prices as of the end of the fiscal year ended March 31, 2026. The fair values of such bonds and other securities are mainly classified as Level 1 depending on the level of market activity. When fair value is determined based on prices quoted by financial institutions, or by discounting future cash flows using observable inputs such as interest rates, spreads, and other factors, they are classified as Level 2.

The fair values of monetary claims held for trading purposes are calculated based on the present values of estimated future cash flows. Those present values are discounted at the risk-free interest rate that reflects credit risk, liquidity risk, etc., and they are classified as Level 3.

<u>Money held in trust</u>

The fair values of money held in trust are, in principle, the values of securities in trust property calculated by the same method as that applied to securities held by the Company. They are classified as Level 2.

<u>Securities</u>

In principle, the fair values of stocks (including foreign stocks and listed investment trusts) are based on the market price as of the end of the fiscal year ended March 31, 2026. They are mainly classified as Level 1 depending on the level of market activity. The fair values of securities with market prices other than stocks are based on the market price as of the end of the fiscal year ended March 31, 2026. Japanese government bonds, etc., are mainly classified as Level 1, and other bonds are classified as Level 2.

The fair values of privately-placed bonds with no market prices are based on the present value of estimated future cash flows, taking into account the borrower's probability of default, loss given default, etc. Those present values are discounted at a rate comprising a risk-free interest rate with certain adjustments. However, the fair values of bonds, such as privately-placed bonds issued by bankrupt borrowers, effectively bankrupt borrowers, and potentially bankrupt borrowers, are based on the bond's book value after deducting the expected amount of loss on the bond computed using the same method applied to the estimation of loan losses. The fair values of investment trusts with no market prices are based on the net asset value.

These transactions are mainly classified as Level 2.

<u>Loans and bills discounted, Lease receivables and investment assets</u>

Of these transactions, considering their characteristics, the fair values of overdrafts with no specified repayment dates are stated at their book values, as such book values are considered to approximate fair value.

For short-term transactions, the fair values are also their book values as they are considered to approximate their fair values.

The fair values of long-term transactions are, in principle, based on the present value of estimated future cash flows taking into account the borrower's probability of default, loss given default, etc. Those present values are discounted at a rate comprising a risk-free interest rate with certain adjustments. At certain consolidated subsidiaries of the Company, the fair values are calculated based on the present values of estimated future cash flows, which are computed using the contractual interest rate. Those present values are discounted at a rate comprising a risk-free interest rate and a credit risk premium.

—55—

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##### [**Table of Contents**](#toc)
Regarding claims on bankrupt borrowers, effectively bankrupt borrowers, and potentially bankrupt borrowers, expected losses on such claims are calculated based on either the expected recoverable amount from disposal of collateral or guarantees, or the present value of expected future cash flows. The fair value is considered to approximate the amount obtained by deducting the allowance for doubtful accounts from the consolidated balance sheet amount of the claims; therefore, such amount is considered the fair value.

These transactions are mainly classified as Level 3.

<u>Liabilities</u>

<u>Trading liabilities</u>

The fair values of bonds sold for short sales and other securities for trading purposes are, in principle, based on their market prices as of the end of the fiscal year ended March 31, 2026. They are mainly classified as Level 1.

<u>Deposits, Negotiable certificates of deposit</u>

Of these transactions, the fair values of demand deposits and deposits without maturity are their book values. The fair values of transactions with a short-term remaining maturity are also their book values, as they are considered to approximate their fair values. The fair values of transactions with a long-term remaining maturity are, in principle, based on the present value of estimated future cash flows discounted at the interest rate assuming that the same type of deposit is newly accepted until the end of the remaining maturity.

These transactions are classified as Level 2.

<u>Borrowed money, Bonds</u>

The fair values of short-term transactions are their book values, as they are considered to approximate their fair values. For long-term transactions, the fair values are based on the present value of estimated future cash flows discounted using the refinancing rate applied to the same type of instruments for the remaining maturity.

For transactions with prices quoted by industry associations, etc., the fair values are based on the amount calculated using the published price data, yield data, etc.

These transactions are mainly classified as Level 2.

<u>Derivative transactions</u>

The fair values of listed derivatives are based on their closing prices. The fair values of over-the-counter derivative transactions are based on the present value of future cash flows, option valuation models, etc., using inputs such as interest rates, foreign exchange rates, stock prices, commodity prices, etc.

Over-the-counter derivative transactions take into account the counterparty's and the Company's credit risks, and the liquidity risks of unsecured funding. Listed derivative transactions are mainly classified as Level 1. Over-the-counter derivative transactions are classified as Level 2 if observable inputs are available or the impact of unobservable inputs on the fair values is not significant. If the impact of unobservable inputs on the fair values is significant, they are classified as Level 3.

—56—

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(Note 2) Quantitative information about financial assets and liabilities classified as Level 3, measured at fair value and presented in the consolidated balance sheet.

1) Quantitative information on significant unobservable inputs

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2025** | **Valuation technique** | **Significant unobservable inputs** | **Range** | **Range** |
| Monetary claims bought | Discounted cash flow | Probability of default | 0.1% | 100.0% |
|  |  | Loss given default | 0.0% | 50.8% |
|  |  | Prepayment rate | 2.0% | 6.5% |
| Trading assets: | Option valuation model | Equity volatility | 93.4% | 93.4% |
|  | Discounted cash flow | Discount margin | 9.3% | 9.3% |
| Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | Discounted cash flow | Probability of default | 7.6% | 100.0% |
|  |  | Loss given default | 0.0% | 44.5% |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign bonds | Discounted cash flow | Probability of default | 100.0% | 100.0% |
|  |  | Loss given default | 40.0% | 71.2% |
| Derivative transactions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate derivatives | Option valuation model | Correlation between interest rates | 34.3% | 99.5% |
|  |  | Correlation between interest rates and foreign exchange rates | 14.1% | 52.4% |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency derivatives | Option valuation model | Correlation between interest rates | 29.5% | 99.5% |
|  |  | Correlation between interest rates and foreign exchange rates | 7.0% | 49.0% |
|  |  | Foreign exchange rate volatility | 11.4% | 13.2% |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity derivatives | Option valuation model | Correlation between equities | 50.9% | 70.0% |
|  |  | Correlation between foreign exchange rates and equities | 3.1% | 3.1% |
|  |  | Equity volatility | 17.9% | 71.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit derivatives | Credit default model | Correlation between foreign exchange rates and CDS\* spread | 17.5% | 30.0% |

---

\* Credit Default Swap

—57—

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##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Valuation technique** | **Significant unobservable inputs** | **Range** | **Range** |
| Monetary claims bought | Discounted cash flow | Probability of default | 0.1% | 100.0% |
|  |  | Loss given default | 0.0% | 50.8% |
|  |  | Prepayment rate | 2.0% | 6.5% |
| Trading assets: | Option valuation model | Equity volatility | 21.8% | 100.7% |
| Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | Discounted cash flow | Probability of default | 7.6% | 100.0% |
|  |  | Loss given default | 1.7% | 78.1% |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign bonds | Discounted cash flow | Probability of default | 100.0% | 100.0% |
|  |  | Loss given default | 40.0% | 40.0% |
| Derivative transactions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate derivatives | Option valuation model | Correlation between interest rates | 39.8% | 99.6% |
|  |  | Correlation between interest rates and foreign exchange rates | 21.8% | 58.3% |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency derivatives | Option valuation model | Correlation between interest rates | 31.4% | 99.6% |
|  |  | Correlation between interest rates and foreign exchange rates | 10.8% | 49.7% |
|  |  | Foreign exchange rate volatility | 11.3% | 13.0% |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity derivatives | Option valuation model | Correlation between equities | 46.1% | 89.1% |
|  |  | Correlation between foreign exchange rates and equities | (3.8)% | (3.8)% |
|  |  | Equity volatility | 19.5% | 78.6% |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit derivatives | Credit default model | Correlation between foreign exchange rates and CDS\* spread | 17.5% | 27.5% |

---

\* Credit Default Swap

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##### [**Table of Contents**](#toc)
2) Reconciliation of the beginning and ending balances, and net unrealized gains (losses) recognized in the earnings of the period

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2025** | **Beginning<br>balance** | **Earnings of<br>the period<sup>\*1</sup>** | **Other<br>comprehensive<br>income<sup>\*2</sup>** | **Net amount<br>of purchase,<br>sale, issuance<br>and<br>settlement** | **Transfer to<br>Level 3<sup>\*3</sup>** | **Transfer<br>from<br>Level 3<sup>\*4</sup>** | **Ending<br>balance** | **Net unrealized gains<br>(losses) on financial<br>assets and liabilities<br>held at consolidated<br>balance sheet date<br>among the amount<br>recognized in the<br>earnings of the period** |
|  Monetary claims bought | ¥419099 | ¥(11844) | ¥(17564) | ¥(8550) | ¥— | ¥— | ¥381139 | ¥— |
|  Trading assets | 20637 | 3821 |  | (27256) | 46748 |  | 43952 | 2338 |
|  Securities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities | 12976 | 92 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;504 | (4592) | 960 | (3664) | 6276 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 11833 | 100 | 31 | (2984) | 960 | (3664) | 6276 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign bonds | 1143 | (8) | 473 | (1608) |  |  | 0 | 38 |
|  Derivative transactions |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 3026 | 1095 |  |  |  |  | 4121 | 1109 |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency | 14756 | 5719 |  |  |  |  | 20476 | 5752 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity | 7043 | (1781) |  | (1175) |  |  | 4086 | 3582 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bond |  | (1549) |  | 1549 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit derivative | 1772 | 1430 |  |  |  |  | 3203 | 1447 |
|  Total | ¥479313 | ¥(3014) | ¥(17059) | ¥(40025) | ¥47708 | ¥(3664) | ¥463257 | ¥14289 |

---

---

| | |
|:---|:---|
| \*1 | The amounts shown in the table above are included in the consolidated statements of income.  |

---

---

| | |
|:---|:---|
| \*2 | The amounts shown in the table above are included in "Net unrealized gains (losses) on other securities" under "Other comprehensive income (losses)."  |

---

\*3 Transfer from Level 2 to Level 3 due in part to an increase in the impact on the fair value of unobservable inputs for monetary claims and privately-placed bonds etc. The transfer was made at the beginning of the fiscal year ended March 31, 2025.

\*4 Transfer from Level 3 to Level 2 due in part to a decrease in the impact on the fair value of unobservable inputs for privately-placed bonds etc. The transfer was made at the beginning of the fiscal year ended March 31, 2025.

—59—

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---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **Beginning<br>balance** | **Earnings of<br>the period<sup>\*1</sup>** | **Other<br>comprehensive<br>income<sup>\*2</sup>** | **Net amount<br>of purchase,<br>sale, issuance<br>and<br>settlement** | **Transfer to<br>Level 3<sup>\*3</sup>** | **Transfer<br>from<br>Level 3<sup>\*4</sup>** | **Ending<br>balance** | **Net unrealized gains<br>(losses) on financial<br>assets and liabilities<br>held at consolidated<br>balance sheet date<br>among the amount<br>recognized in the<br>earnings of the period** |
|  Monetary claims bought | ¥381139 | ¥(8223) | ¥60964 | ¥(10456) | ¥— | ¥— | ¥423424 | ¥— |
|  Trading assets | 43952 | 976 |  | (42245) | 5178 |  | 7862 | 190 |
|  Securities |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities | 6276 | 534 | (9) | (2459) | 616 | (2764) | 2194 | (76) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 6276 | (76) | (9) | (1848) | 616 | (2764) | 2194 | (76) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign bonds | 0 | 610 |  | (610) |  |  | 0 |  |
|  Derivative transactions |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate | 4121 | 2388 |  |  |  |  | 6509 | 2388 |
| &nbsp;&nbsp;&nbsp;&nbsp; Currency | 20476 | 14695 |  |  |  |  | 35172 | 14762 |
| &nbsp;&nbsp;&nbsp;&nbsp; Equity | 4086 | 964 |  | (1959) |  |  | 3091 | 2578 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bond |  | (2888) |  | 2888 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Credit derivative | 3203 | 615 |  |  |  |  | 3819 | 642 |
|  Total | ¥463257 | ¥9063 | ¥60955 | ¥(54232) | ¥5795 | ¥(2764) | ¥482074 | ¥20485 |

---

---

| | |
|:---|:---|
| \*1 | The amounts shown in the table above are included in the consolidated statements of income.  |

---

---

| | |
|:---|:---|
| \*2 | The amounts shown in the table above are included in "Net unrealized gains (losses) on other securities" under "Other comprehensive income (losses)."  |

---

\*3 Transfer from Level 2 to Level 3 due in part to an increase in the impact on the fair value of unobservable inputs for stocks and privately-placed bonds etc. The transfer was made at the beginning of the fiscal year ended March 31, 2026.

\*4 Transfer from Level 3 to Level 2 due in part to a decrease in the impact on the fair value of unobservable inputs for privately-placed bonds etc. The transfer was made at the beginning of the fiscal year ended March 31, 2026.

3) Description of the fair value valuation process

At the Group, the middle division establishes policies and procedures for the calculation of fair value, and the front division develops valuation models in accordance with such policies and procedures. The middle division verifies the reasonableness of the fair value valuation models, the inputs used, and the appropriateness of the classified fair value level of the calculated fair value.

Observable data is utilized as much as possible in the valuation models. If quoted prices obtained from third parties are used, such values are verified by comparison with results recalculated by the Group using inputs for the valuation.

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4) Description of the sensitivity of fair value to changes in significant unobservable inputs

<u>Probability of default</u>

Probability of default represents the likelihood that the default will occur, and is estimated based on actual defaults in the past. A significant increase (decrease) in the probability of default would result in a significant decrease (increase) in fair value.

<u>Loss given default</u>

Loss given default is the proportion of estimated losses in the event that a default occurs, relative to the total balance of bonds or loans and bills discounted, and is calculated based on actual defaults in the past. A significant increase (decrease) in loss given default would result in a significant decrease (increase) in fair value.

<u>Prepayment rate</u>

Prepayment rate is the proportion of the principal of securities that is expected to be paid before maturity in each period, and is calculated based on actual prepayments in the past. In general, a significant increase (decrease) in the prepayment rate would result in a significant decrease (increase) in fair value according to the contractual terms and conditions of financial instruments.

<u>Volatility</u>

Volatility is an indicator of the expected magnitude of changes in inputs and market prices over a certain period. Volatility is estimated based on historical data, information provided by third parties, and other analytical methods. Volatility is mainly used in the valuation of derivatives that reference potential changes in the levels of interest rates, foreign exchange rates, stock prices, etc. In general, a significant increase (decrease) in volatility would result in a significant increase (decrease) in fair value.

<u>Discount margin</u>

Discount margin represents a spread used in discounting estimated future cash flows in the DCF method to reflect the uncertainty of cash flows in the determination of fair value.

<u>Correlation</u>

Correlation is an indicator of the relationship among changes in variables such as interest rates, foreign exchange rates, Credit Default Swap (CDS) spreads, and stock prices. It is estimated based on actual past results and is mainly used in valuation techniques for complex derivatives, etc. In general, a significant change in correlation would result in a significant increase (decrease) in fair value depending on the contractual terms and conditions of financial instruments.

---

| | |
|:---|:---|
| (Note 3) | Consolidated balance sheet amounts of stocks with no market prices, etc. and investments in partnerships, etc. are as follows. In accordance with Paragraph 5 of the "Implementation Guidance on Disclosures about Fair Value of Financial Instruments" (ASBJ Guidance No.19, March 31, 2020) and Paragraph 24-16 of the "Guidance for Application of Fair Value Measurement" (ASBJ Guidance No.31, June 17, 2021), these amounts are not included in "Trading assets" and "Securities" in the tables disclosed under "Matters concerning fair value of financial instruments and breakdown by input level."  |

---

---

| | | |
|:---|:---|:---|
| **March 31** | **Millions of yen** | **Millions of yen** |
| **March 31** | **2025** | **2026** |
|  Stocks with no market prices, etc.<sup>\*1, 2</sup> | ¥234537 | ¥315001 |
|  Investments in partnership, etc.<sup>\*2</sup> | 502861 | 575131 |
|  Total | ¥737399 | ¥890132 |

---

\*1 Unlisted stocks are included in stocks with no market prices, etc.

---

| | |
|:---|:---|
| \*2 | Unlisted stocks and investments in partnerships totaling ¥31,187 million and ¥36,203 million were written off in the fiscal years ended March 31, 2025 and 2026, respectively.  |

---

—61—

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(Note 4) Redemption schedule of monetary claims and securities with maturities

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31, 2025** | **Within 1 year** | **After 1 year<br>through 5 years** | **After 5 years<br>through 10 years** | **After 10 years** |
|  Monetary claims bought<sup>\*1</sup> | ¥4120585 | ¥728794 | ¥533027 | ¥231692 |
|  Securities | 14765469 | 9716305 | 3515369 | 5550961 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bonds classified as held-to-maturity |  | 274531 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds |  | 109600 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds |  | 151931 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds |  | 13000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities with maturity | 14765469 | 9441774 | 3515369 | 5550961 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 9677520 | 1367000 | 40000 | 148000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 126384 | 256388 | 476958 | 4466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 263730 | 890056 | 416093 | 369101 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 4697834 | 6928329 | 2582318 | 5029392 |
|  Loans and bills discounted<sup>\*1, 2</sup>  | 28648935 | 50963792 | 15083735 | 6660002 |
|  Lease receivables and investment assets | 53760 | 106270 | 27640 | 28430 |
|  Total | ¥47588750 | ¥61515163 | ¥19159774 | ¥12471086 |

---

---

| | |
|:---|:---|
| \*1 | The amounts shown in the table above do not include claims for which redemption is not expected, such as claims on bankrupt borrowers, effectively bankrupt borrowers, and potentially bankrupt borrowers. The amounts for such claims are ¥445 million for monetary claims bought and ¥270,173 million for loans and bills discounted.  |

---

---

| | |
|:---|:---|
| \*2 | Loans and bills discounted with no specified maturity are not included. The amount of such loans is ¥8,836,144 million.  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31, 2026** | **Within 1 year** | **After 1 year<br>through 5 years** | **After 5 years<br>through 10 years** | **After 10 years** |
|  Monetary claims bought<sup>\*1</sup> | ¥3959132 | ¥1070242 | ¥696325 | ¥288269 |
|  Securities | 8299802 | 11151920 | 7544067 | 5595682 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bonds classified as held-to-maturity | 15898 | 505133 | 4098700 | 69871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 10000 | 346100 | 4098700 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 5898 | 146033 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds |  | 13000 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other |  |  |  | 69871 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities with maturity | 8283904 | 10646787 | 3445367 | 5525810 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 2842200 | 1360000 | 675000 | 754500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 66997 | 399213 | 263936 | 4169 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 192658 | 637191 | 328541 | 336629 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other | 5182048 | 8250382 | 2177890 | 4430511 |
|  Loans and bills discounted<sup>\*1, 2</sup>  | 30944930 | 52307125 | 16925221 | 6565093 |
|  Lease receivables and investment assets | 47630 | 124686 | 20324 | 30618 |
|  Total | ¥43251496 | ¥64653974 | ¥25185939 | ¥12479664 |

---

---

| | |
|:---|:---|
| \*1 | The amounts shown in the table above do not include claims for which redemption is not expected, such as claims on bankrupt borrowers, effectively bankrupt borrowers, and potentially bankrupt borrowers. The amounts for such claims are ¥504 million for monetary claims bought and ¥539,314 million for loans and bills discounted.  |

---

---

| | |
|:---|:---|
| \*2 | Loans and bills discounted with no specified maturity are not included. The amount of such loans is ¥10,347,752 million.  |

---

—62—

------

##### [**Table of Contents**](#toc)
(Note 5) Repayment schedule of bonds, borrowed money, and other interest-bearing debts

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31, 2025** | **Within 1 year** | **After 1 year<br>through 5 years** | **After 5 years<br>through 10 years** | **After 10 years** |
|  Deposits<sup>\*</sup> | ¥166825089 | ¥3616914 | ¥646502 | ¥410144 |
|  Negotiable certificates of deposit | 16575807 | 557288 | 42295 |  |
|  Borrowed money | 4753680 | 5485260 | 766699 | 349568 |
|  Bonds | 1711881 | 6150639 | 2462663 | 2993388 |
|  Total | ¥189866459 | ¥15810102 | ¥3918161 | ¥3753101 |

---

\* Demand deposits are included in "Within 1 year." "Deposits" include current deposits.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31, 2026** | **Within 1 year** | **After 1 year<br>through 5 years** | **After 5 years<br>through 10 years** | **After 10 years** |
|  Deposits<sup>\*</sup> | ¥181003154 | ¥3519690 | ¥749260 | ¥402135 |
|  Negotiable certificates of deposit | 15256931 | 410200 |  |  |
|  Borrowed money | 4540956 | 3966280 | 452292 | 411466 |
|  Bonds | 2294592 | 6563497 | 2685582 | 3779386 |
|  Total | ¥203095635 | ¥14459669 | ¥3887135 | ¥4592989 |

---

\* Demand deposits are included in "Within 1 year." "Deposits" include current deposits.

—63—

------

##### [**Table of Contents**](#toc)
**(Notes to securities)** 

The amounts shown in the following tables include trading securities, etc. classified under "Trading assets," negotiable certificates of deposit classified under "Cash and due from banks," and beneficiary claims on loan trust classified under "Monetary claims bought," in addition to "Securities" presented in the consolidated balance sheets.

**1.** **Securities classified as trading purposes** 

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2026** |
|  Valuation gains (losses) included in the earnings for the fiscal year | ¥ (84832) | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116477 |

---

**2. Bonds classified as held-to-maturity** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2025** | **March 31, 2025** | **Consolidated balance<br>sheet amount** | **Fair value** | **Net unrealized<br>gains (losses)** |
|  Bonds with unrealized gains: | Japanese government bonds | ¥— | ¥— | ¥— |
|  | Japanese local government bonds |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |
|  | Japanese corporate bonds |  |  |  |
|  | Other |  |  |  |
|  | Subtotal |  |  |  |
|  Bonds with unrealized losses: | Japanese government bonds | 109550 | 107656 | (1893) |
|  | Japanese local government bonds | 151882 | 147902 | (3980) |
|  | Japanese corporate bonds | 12981 | 12681 | (300) |
|  | Other |  |  |  |
|  | Subtotal | 274414 | 268240 | (6174) |
|  Total | Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;274414 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;268240 | ¥(6174) |
|  |  | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **March 31, 2026** | **Consolidated balance<br>sheet amount** | **Fair value** | **Net unrealized<br>gains (losses)** |
|  Bonds with unrealized gains: | Japanese government bonds | ¥— | ¥— | ¥— |
|  | Japanese local government bonds |  |  |  |
|  | Japanese corporate bonds |  |  |  |
|  | Other | 7994 | 8002 | 7 |
|  | Subtotal | 7994 | 8002 | 7 |
|  Bonds with unrealized losses: | Japanese government bonds | 4420557 | 4246611 | (173946) |
|  | Japanese local government bonds | 151898 | 147634 | (4263) |
|  | Japanese corporate bonds | 12986 | 12611 | (375) |
|  | Other | 61877 | 61805 | (71) |
|  | Subtotal | 4647320 | 4468663 | (178657) |
|  Total | Total | ¥4655314 | ¥4476665 | ¥(178649) |

---

—64—

------

##### [**Table of Contents**](#toc)
**3.** **Other securities** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2025** | **March 31, 2025** | **Consolidated<br>balance sheet amount** | **Acquisition cost** | **Net unrealized<br>gains (losses)** |
|  Other securities with unrealized gains: | Stocks | ¥2845865 | ¥879921 | ¥1965943 |
|  Other securities with unrealized gains: | Bonds | 1277733 | 1270224 | 7508 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 518438 | 518333 | 104 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds  | 10 | 10 | 0 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 759284 | 751881 | 7403 |
|  | Other | 11237738 | 9665072 | 1572666 |
|  | Subtotal | 15361336 | 11815218 | 3546118 |
|  Other securities with unrealized losses: | Stocks | 25272 | 30289 | (5016) |
|  Other securities with unrealized losses: | Bonds | 12615744 | 12768090 | (152345) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 10662108 | 10714608 | (52500) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 822564 | 864374 | (41809) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 1131071 | 1189107 | (58035) |
|  | Other | 11047661 | 11630394 | (582733) |
|  | Subtotal | 23688678 | 24428774 | (740095) |
|  Total | Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39050015 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36243992 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2806023 |

---

Note: There were no net unrealized gains (losses) on other securities shown above for the fiscal year ended March 31, 2025 recognized in the earnings through the application of fair value hedge accounting.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **March 31, 2026** | **Consolidated<br>balance sheet amount** | **Acquisition cost** | **Net unrealized<br>gains (losses)** |
|  Other securities with unrealized gains: | Stocks | ¥3280878 | ¥782203 | ¥2498675 |
|  Other securities with unrealized gains: | Bonds | 729842 | 722983 | 6858 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 299940 | 299875 | 64 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds  | 5 | 4 | 0 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 429897 | 423102 | 6794 |
|  | Other | 11208656 | 9780360 | 1428295 |
|  | Subtotal | 15219377 | 11285547 | 3933829 |
|  Other securities with unrealized losses: | Stocks | 9788 | 11268 | (1480) |
|  Other securities with unrealized losses: | Bonds | 6826860 | 7104961 | (278101) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 5176487 | 5296996 | (120509) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 683029 | 734402 | (51372) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 967342 | 1073562 | (106220) |
|  | Other | 11837517 | 12271531 | (434014) |
|  | Subtotal | 18674165 | 19387761 | (713596) |
|  Total | Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33893543 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30673309 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3220233 |

---

Note: There were no net unrealized gains (losses) on other securities shown above for the fiscal year ended March 31, 2026 recognized in the earnings through the application of fair value hedge accounting.

—65—

------

##### [**Table of Contents**](#toc)
**4.** **Held-to-maturity bonds sold during the fiscal year** 

***Fiscal year ended March 31, 2025***

There were no corresponding transactions.

***Fiscal year ended March 31, 2026***

There were no corresponding transactions.

**5.** **Other securities sold during the fiscal year** 

---

| | | | |
|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31, 2025** | **Sales amount** | **Gains on sales** | **Losses on sales** |
|  Stocks | ¥692036 | ¥495495 | ¥(6593) |
|  Bonds | 3574043 | 3207 | (43602) |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 3145713 | 2804 | (37005) |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 184260 | 20 | (5354) |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 244070 | 381 | (1243) |
|  Other | 14063284 | 121559 | (72680) |
|  Total | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18329365 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;620261 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(122876) |
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2026** | **Sales amount** | **Gains on sales** | **Losses on sales** |
|  Stocks | ¥566828 | ¥389093 | ¥(1054) |
|  Bonds | 1564944 | 3598 | (33277) |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese government bonds | 1249545 | 3035 | (32799) |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese local government bonds | 41557 | 25 | (421) |
| &nbsp;&nbsp;&nbsp;&nbsp; Japanese corporate bonds | 273842 | 537 | (57) |
|  Other | 12912174 | 185112 | (117843) |
|  Total | ¥15043947 | ¥577805 | ¥(152175) |

---

**6.** **Change in classification of securities** 

***Fiscal year ended March 31, 2025***

There were no significant corresponding transactions to be disclosed.

***Fiscal year ended March 31, 2026***

There were no significant corresponding transactions to be disclosed.

—66—

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##### [**Table of Contents**](#toc)
**7.** **Write-down of securities** 

Bonds classified as held-to-maturity and other securities (excluding other securities whose consolidated balance sheet amounts are not stated at fair value) are considered to be impaired if the fair value has decreased materially below the acquisition cost, and such decline is not expected to be recoverable. The fair value is recognized as the consolidated balance sheet amount, and the amount of write-down is recorded as valuation loss for the fiscal year. Valuation losses for the fiscal years ended March 31, 2025 and 2026 were ¥490 million and ¥3,629 million, respectively. The criteria for determining the "material decline" are as follows and are based on the classification of issuers under the rules of self-assessment of assets.

---

| | |
|:---|:---|
|  Bankrupt, Effectively bankrupt, Potentially bankrupt issuers | Fair value has declined below the acquisition cost. |
|  Issuers requiring caution: | Fair value has declined by 30% or more from the acquisition cost. |
|  Normal issuers: | Fair value has declined by 50% or more from the acquisition cost. |
|  Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt. | Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt. |
|  Effectively bankrupt issuers: Issuers that are not legally bankrupt but are regarded as substantially bankrupt. | Effectively bankrupt issuers: Issuers that are not legally bankrupt but are regarded as substantially bankrupt. |
|  Potentially bankrupt issuers: Issuers that are not currently bankrupt but are considered to have a high risk of falling into bankruptcy. | Potentially bankrupt issuers: Issuers that are not currently bankrupt but are considered to have a high risk of falling into bankruptcy. |
|  Issuers requiring caution: Issuers that are identified for close monitoring. | Issuers requiring caution: Issuers that are identified for close monitoring. |
|  Normal issuers: Issuers other than the above 4 categories of issuers. | Normal issuers: Issuers other than the above 4 categories of issuers. |

---

—67—

------

##### [**Table of Contents**](#toc)
**(Notes to money held in trust)** 

**1.** **Money held in trust classified as trading purposes** 

---

| | | | |
|:---|:---|:---|:---|
| **March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2025** | **Consolidated balance<br>sheet amount** | **Acquisition cost** | **Net unrealized<br> gains (losses)** |
|  Money held in trust classified as trading purposes | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31752 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31841 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(88) |
| **March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **Consolidated balance<br>sheet amount** | **Acquisition cost** | **Net unrealized<br>gains (losses)** |
|  Money held in trust classified as trading purposes | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36381 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35988 | ¥392 |

---

**2.** **Money held in trust classified as held-to-maturity** 

***Fiscal year ended March 31, 2025***

There were no corresponding transactions.

***Fiscal year ended March 31, 2026***

There were no corresponding transactions.

**3.** **Other money held in trust (other than trading purpose and held-to-maturity)** 

---

| | | | |
|:---|:---|:---|:---|
| **March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2025** | **Consolidated balance<br>sheet amount** | **Acquisition cost** | **Net unrealized<br> gains (losses)** |
|  Other money held in trust | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;520 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;520 |  |
| **March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **Consolidated balance<br>sheet amount** | **Acquisition cost** | **Net unrealized<br>gains (losses)** |
|  Other money held in trust | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;521 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;521 |  |

---

—68—

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##### [**Table of Contents**](#toc)
**(Notes to net unrealized gains (losses) on other securities)** 

The breakdown of "Net unrealized gains (losses) on other securities" reported on the consolidated balance sheets is as shown below:

---

| | |
|:---|:---|
| **March 31, 2025** | **Millions of yen** |
|  Net unrealized gains (losses) | ¥2806103 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities | 2806103 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other money held in trust |  |
|  (-) Deferred tax liabilities | 788158 |
|  Net unrealized gains (losses) on other securities (before following adjustments) | 2017944 |
|  (-) Non-controlling interests | 106208 |
|  (+) The Company's interest in net unrealized gains (losses) on valuation of other securities held by equity method affiliates | 19098 |
|  Net unrealized gains (losses) on other securities | ¥1930834 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | There were no net unrealized gains (losses) on other securities shown above for the fiscal year ended March 31, 2025 recognized in the fiscal year's earnings by applying fair value hedge accounting. |
|  | 2. | Net unrealized gains (losses) on other securities included foreign currency translation adjustments on foreign currency-denominated securities whose fair value was not recognized as the consolidated balance sheet amount. |
|  | 3. | Non-controlling interests included equity interests acquired from non-controlling shareholders. |

---

---

| | |
|:---|:---|
| **March 31, 2026** | **Millions of yen** |
|  Net unrealized gains (losses) | ¥3220690 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other securities | 3220690 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other money held in trust |  |
|  (-) Deferred tax liabilities | 943298 |
|  Net unrealized gains (losses) on other securities (before following adjustments) | 2277392 |
|  (-) Non-controlling interests | 108849 |
|  (+) The Company's interest in net unrealized gains (losses) on valuation of other securities held by equity method affiliates | 16549 |
|  Net unrealized gains (losses) on other securities | ¥2185092 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | There were no net unrealized gains (losses) on other securities shown above for the fiscal year ended March 31, 2026 recognized in the fiscal year's earnings by applying fair value hedge accounting. |
|  | 2. | Net unrealized gains (losses) on other securities included foreign currency translation adjustments on foreign currency-denominated securities whose fair value was not recognized as the consolidated balance sheet amount. |
|  | 3. | Non-controlling interests included equity interests acquired from non-controlling shareholders. |

---

—69—

------

##### [**Table of Contents**](#toc)
**(Notes to derivative transactions)** 

**1.** **Derivative transactions to which hedge accounting method was not applied** 

The following tables set forth the contract amounts, or the notional amounts, fair values, and valuation gains (losses) by type of derivative for derivative transactions to which hedge accounting was not applied at the end of the fiscal year. The contract amounts do not necessarily indicate the market risk associated with derivative transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Interest rate derivatives

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | | **Valuation<br>gains (losses)** |
| <br>**March 31, 2025** | **Total** | **Over 1 year** |<br>**Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Interest rate futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥20054787 | ¥5668067 | ¥3601 | ¥3601 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 64258953 | 8171815 | (817) | (817) |
|  Interest rate options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 28259600 | 9383425 | (22822) | (22822) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 98859073 | 18793820 | 18306 | 18306 |
|  **Over-the-counter** |  |  |  |  |
|  Forward rate agreements: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 18573211 | 2885194 | 8792 | 8792 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 20854430 | 4378015 | (10606) | (10606) |
|  Interest rate swaps: | 1106745248 | 892943943 | (142634) | (142634) |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed rate/payable floating rate | 517358862 | 428428773 | (13295680) | (13295680) |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/payable fixed rate | 525509264 | 418670151 | &nbsp;&nbsp;&nbsp;&nbsp;13135859 | &nbsp;&nbsp;&nbsp;&nbsp;13135859 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/payable floating rate | 63664402 | 45634299 | 17816 | 17816 |
|  Interest rate swaptions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 43332176 | 20495871 | (476629) | (476629) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 43261768 | 23203209 | 513056 | 513056 |
|  Caps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 83735172 | 36642145 | (351055) | (351055) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 21461901 | 13695402 | 85774 | 85774 |
|  Floors: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 14423781 | 10625453 | (24184) | (24184) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 15951494 | 11931012 | 39046 | 39046 |
|  Other: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 19342043 | 6878649 | (99290) | (99290) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 44619256 | 24100186 | 191611 | 191611 |
|  Total | / | / | ¥(267849) | ¥(267849) |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

—70—

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##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| <br>**March 31, 2026** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Interest rate futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥15726550 | ¥4503372 | ¥3368 | ¥3368 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 74056791 | 17584755 | (3500) | (3500) |
|  Interest rate options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 36526253 | 11133714 | (17456) | (17456) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 121370861 | 26857889 | 29706 | 29706 |
|  **Over-the-counter** |  |  |  |  |
|  Forward rate agreements: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 21972069 | 4324548 | (44894) | (44894) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 26914847 | 6125444 | 51677 | 51677 |
|  Interest rate swaps: | 1356843348 | 987514806 | (305487) | (305487) |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed rate/payable floating rate | 653404095 | 483288426 | (17547368) | (17547368) |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/payable fixed rate | 663820163 | 474544088 | &nbsp;&nbsp;&nbsp;&nbsp;17224264 | &nbsp;&nbsp;&nbsp;&nbsp;17224264 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/payable floating rate | 39404323 | 29474027 | 17597 | 17597 |
|  Interest rate swaptions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 48888536 | 24527660 | (555719) | (555719) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 49120148 | 25269734 | 660568 | 660568 |
|  Caps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 95240845 | 44253228 | (310712) | (310712) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 26850508 | 14367136 | 94134 | 94134 |
|  Floors: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 16364600 | 9047207 | (21732) | (21732) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 21348667 | 10950286 | 43003 | 43003 |
|  Other: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 17697440 | 4285854 | (60411) | (60411) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 37551195 | 16752609 | 157058 | 157058 |
|  Total | / | / | ¥(280398) | ¥(280398) |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

—71—

------

##### [**Table of Contents**](#toc)
(2) Currency derivatives

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2025** | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| **March 31, 2025** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Currency futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥615 | ¥— | ¥0 | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 12361 |  | (93) | (93) |
|  **Over-the-counter** |  |  |  |  |
|  Currency swaps | 123868425 | &nbsp;&nbsp;&nbsp;&nbsp;96131685 | 1492251 | 365159 |
|  Currency swaptions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 11113 | 11113 | (34) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 1954197 | 1915220 | 8617 | 8617 |
|  Forward foreign exchange | 123060968 | 14319512 | (332756) | (332756) |
|  Currency options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 5725856 | 1909969 | (223837) | (223837) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 4861527 | 1298780 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;159281 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;159281 |
|  Total | / | / | ¥1103428 | ¥(23663) |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| **March 31, 2026** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Currency futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥2593 | ¥— | ¥0 | ¥0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 45305 |  | (2160) | (2160) |
|  **Over-the-counter** |  |  |  |  |
|  Currency swaps | 148438847 | 117557723 | 1477460 | 623932 |
|  Currency swaptions: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 1545461 | 1524827 | 352 | 352 |
|  Forward foreign exchange | 150374163 | 15971734 | (260491) | (260491) |
|  Currency options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 9870514 | 2410486 | (316401) | (316401) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 8929944 | 1872852 | 191441 | 191441 |
|  Total | / | / | ¥1090200 | ¥236672 |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

—72—

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;(3) Equity derivatives

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| <br>**March 31, 2025** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Equity price index futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥1313450 | ¥— | ¥26166 | ¥26166 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 557302 |  | (8936) | (8936) |
|  Equity price index options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 187731 | 20450 | (8462) | (8462) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 144495 | 19800 | 5406 | 5406 |
|  **Over-the-counter** |  |  |  |  |
|  Equity options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 80698 | 201 | (3160) | (3160) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 119125 | 4695 | 7466 | 7466 |
|  Equity index forward contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 22561 |  | 72 | 72 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 227877 | 91 | 119186 | 119186 |
|  Equity price index swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable equity index/payable short-term floating rate |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable short-term floating rate/payable equity index | 23193 | 19672 | 399 | 399 |
|  Other: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 20032 | 3875 | 310 | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought |  |  |  |  |
|  Total | / | / | ¥138449 | ¥138449 |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

—73—

------

##### [**Table of Contents**](#toc)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| <br>**March 31, 2026** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Equity price index futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥1378563 | ¥— | ¥56288 | ¥56288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 719426 |  | (32036) | (32036) |
|  Equity price index options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 131735 | 21950 | (10002) | (10002) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 121402 | 19200 | 6184 | 6184 |
|  **Over-the-counter** |  |  |  |  |
|  Equity options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 63905 | 1087 | (3346) | (3346) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 86484 | 1478 | 5233 | 5233 |
|  Equity index forward contracts: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 26803 | 716 | 644 | 644 |
|  Equity price index swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable equity index/payable short-term <br>floating rate | 30000 |  | (2090) | (2090) |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable short-term floating rate/payable <br>equity index | 45238 | 41938 | 1135 | 1135 |
|  Other: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 21952 | 3948 | (164) | (164) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought |  |  |  |  |
|  Total | / | / | ¥21845 | ¥21845 |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

—74—

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;(4) Bond derivatives

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br> gains (losses)** |
| <br>**March 31, 2025** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br> gains (losses)** |
|  **Listed** |  |  |  |  |
|  Bond futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥2624295 | ¥67031 | ¥(7441) | ¥(7441) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 2766606 | 43202 | 7534 | 7534 |
|  Bond futures options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 15356 |  | (20) | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 11962 |  | 51 | 51 |
|  **Over-the-counter** |  |  |  |  |
|  Bond options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 124165 |  | (208) | (208) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 124165 |  | 513 | 513 |
|  Total | / | / | ¥428 | ¥428 |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br> gains (losses)** |
| <br>**March 31, 2026** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br> gains (losses)** |
|  **Listed** |  |  |  |  |
|  Bond futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥4398920 | ¥51442 | ¥26877 | ¥26877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 4468938 | 18964 | (28861) | (28861) |
|  Bond futures options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 111247 |  | (42) | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 95940 |  | 69 | 69 |
|  **Over-the-counter** |  |  |  |  |
|  Bond options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 185372 |  | (894) | (894) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 185372 |  | 717 | 717 |
|  Total | / | / | ¥(2134) | ¥(2134) |

---

 <br> Note: The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income.

—75—

------

##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;(5) Commodity derivatives

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2025** | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| **March 31, 2025** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Commodity futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥42257 | ¥— | ¥429 | ¥429 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 43214 |  | (419) | (419) |
|  **Over-the-counter** |  |  |  |  |
|  Commodity swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed price/payable floating price | 45313 | 30414 | 609 | 609 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating price/payable fixed price | 39294 | 24838 | 520 | 520 |
|  Commodity options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 3350 | 1327 | (6) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 1681 | 614 | 12 | 12 |
|  Total | / | / | ¥1147 | ¥1147 |

---

Notes: 1. The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income. <br> 2. The underlying assets of commodity derivatives related to fuels and metals.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| **March 31, 2026** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Listed** |  |  |  |  |
|  Commodity futures: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥60762 | ¥9675 | ¥(8666) | ¥(8666) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 65510 | 12139 | 10111 | 10111 |
|  **Over-the-counter** |  |  |  |  |
|  Commodity swaps: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed price/payable floating price | 72395 | 43677 | (25935) | (25935) |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating price/payable fixed price | 69816 | 42247 | 25222 | 25222 |
|  Commodity options: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | 4315 | 2562 | (878) | (878) |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 3800 | 2323 | (15) | (15) |
|  Total | / | / | ¥(162) | ¥(162) |

---

Notes: 1. The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income. <br> 2. The underlying assets of commodity derivatives related to fuels and metals.

—76—

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;(6) Credit derivative transactions

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| <br>**March 31, 2025** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Over-the-counter** |  |  |  |  |
|  Credit derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥1389807 | ¥1118794 | ¥22737 | ¥22737 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 2126702 | 1850091 | (28620) | (28620) |
|  Total | / | / | ¥(5883) | ¥(5883) |

---

Notes: 1. The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income. <br> 2. "Sold" represents transactions in which the credit risk was assumed; "Bought" represents transactions in which the credit risk was transferred.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Contract amount** | **Contract amount** | **Fair value** | **Valuation<br>gains (losses)** |
| <br>**March 31, 2026** | **Total** | **Over 1 year** | **Fair value** | **Valuation<br>gains (losses)** |
|  **Over-the-counter** |  |  |  |  |
|  Credit derivatives: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sold | ¥1818996 | ¥1586706 | ¥20474 | ¥20474 |
| &nbsp;&nbsp;&nbsp;&nbsp; Bought | 2824482 | 2612944 | (23195) | (23195) |
|  Total | / | / | ¥(2721) | ¥(2721) |

---

Notes: 1. The above transactions were valued at fair value, and the valuation gains (losses) were accounted for in the consolidated statements of income. <br> 2. "Sold" represents transactions in which the credit risk was assumed; "Bought" represents transactions in which the credit risk was transferred.

—77—

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##### [**Table of Contents**](#toc)
**2.** **Derivative transactions to which hedge accounting method was applied** 

The following tables set forth the contract amounts, or notional amounts, and fair values by type of derivative and by hedge accounting method for derivative transactions to which hedge accounting was applied at the end of the fiscal year. The contract amounts do not necessarily indicate the market risk associated with derivative transactions.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Interest rate derivatives

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **March 31, 2025** | **Type of derivative** | **Principal items hedged** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Contract amount** | **Contract amount** | |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Total** | **Over 1 year** |<br>**Fair value** |
|  Deferral hedge method | Interest rate futures: | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Sold | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | ¥5999652 | ¥5986074 | ¥(7810) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Bought | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 4784960 | 2990600 | (2631) |
|  | Interest rate swaps: | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed rate/<br>payable floating rate | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 45717816 | 39430733 | (761940) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable fixed rate | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 24175237 | 23069348 | 451079 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable floating rate  | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 517660 | 92660 | 5004 |
|  | Interest rate swaptions: | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Sold |  | 207846 | 207846 | (34925) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Bought |  |  |  |  |
|  Recognition of gain or loss on the hedged items | Interest rate swaps: | Loans and bills discounted, deposits |  |  |  |
|  Recognition of gain or loss on the hedged items | &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed rate/<br>payable floating rate |  | 129315 |  | (153) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable fixed rate  |  | 786671 | 656700 | 17764 |
|  Special treatment <br>for interest rate <br>swaps | Interest rate swaps: | Borrowed money |  |  |  |
|  Special treatment <br>for interest rate <br>swaps | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable fixed rate |  | 95623 | 86902 | (Note 2) |
|  | Total |  | / | / | ¥(333612) |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 24. |
|  | 2. | Interest rate swaps subject to the special treatment for interest rate swaps were treated together with the borrowed money that was designated as a hedged item. Accordingly, their fair values were included in the fair values of the relevant borrowed money stated in (Notes to financial instruments). |

---

—78—

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##### [**Table of Contents**](#toc)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **March 31, 2026** | | | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Contract amount** | **Contract amount** | |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Total** | **Over 1 year** |<br>**Fair value** |
|  Deferral hedge method | Interest rate futures: | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit |  |  |  |
|  Deferral hedge method | &nbsp;&nbsp;&nbsp;&nbsp; Sold | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | ¥5089 | ¥1766 | ¥(76) |
|  Deferral hedge method | &nbsp;&nbsp;&nbsp;&nbsp; Bought | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 2398500 | 1599000 | (1517) |
|  | Interest rate swaps: | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed rate/<br>payable floating rate | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 51434032 | 40568109 | (1279689) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable fixed rate | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 27588966 | 25629232 | 953378 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable floating rate | Interest-earning/bearing financial assets/liabilities such as loans and bills discounted, other securities, deposits and negotiable certificates of deposit | 111986 | 108896 | 2391 |
|  | Interest rate swaptions: |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Sold |  | 222261 | 222261 | (39169) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Bought |  |  |  |  |
|  | Caps: |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Sold |  |  |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Bought |  | 64102 |  | 710 |
|  Recognition of gain <br>or loss on the <br>hedged items | Interest rate swaps: | Loans and bills discounted, deposits |  |  |  |
|  Recognition of gain <br>or loss on the <br>hedged items | &nbsp;&nbsp;&nbsp;&nbsp; Receivable fixed rate/<br>payable floating rate | Loans and bills discounted, deposits | 334726 |  | (497) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable fixed rate | Loans and bills discounted, deposits | 533434 | 432215 | 16483 |
|  Special treatment <br>for interest rate <br>swaps | Interest rate swaps: | Borrowed money |  |  |  |
|  Special treatment <br>for interest rate <br>swaps | &nbsp;&nbsp;&nbsp;&nbsp; Receivable floating rate/<br>payable fixed rate  |  | 120462 | 98597 | (Note 2) |
|  | Total |  | / | / | ¥(347986) |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 24. |
|  | 2. | Interest rate swaps subject to the special treatment for interest rate swaps were treated together with the borrowed money that was designated as a hedged item. Accordingly, their fair values were included in the fair values of the relevant borrowed money stated in (Notes to financial instruments). |

---

—79—

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;(2) Currency derivatives

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **March 31, 2025** | **Type of derivative** | **Principal items hedged** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Contract amount** | **Contract amount** | |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Total** | **Over 1 year** |<br> **Fair value** |
|  Deferral hedge method | Currency swaps | Foreign currency-denominated loans and bills discounted, other securities, deposits, foreign exchange, etc. | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13883447 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8995914 | ¥(1374153) |
|  Deferral hedge method | Forward foreign exchange | Foreign currency-denominated loans and bills discounted, other securities, deposits, foreign exchange, etc. | 4884443 | 545 | (19926) |
|  Recognition of gain or loss on the hedged items | Currency swaps | Loans and bills discounted, other securities | 38046 | 33389 | (789) |
|  Recognition of gain or loss on the hedged items | Currency swaps | Loans and bills discounted, other securities | 38046 | 33389 | (789) |
|  | Total |  | / | / | ¥(1394869) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **March 31, 2026** | **Type of derivative** | **Principal items hedged** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Contract amount** | **Contract amount** | |
| **Hedge accounting<br>method** | **Type of derivative** | **Principal items hedged** | **Total** | **Over 1 year** |<br> **Fair value** |
|  Deferral hedge method | Currency swaps | Foreign currency-denominated loans and bills discounted, other securities, deposits, foreign exchange, etc. | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11938890 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9481859 | ¥(1524030) |
|  Deferral hedge method | Forward foreign exchange | Foreign currency-denominated loans and bills discounted, other securities, deposits, foreign exchange, etc. | 4513454 | 1075 | 29545 |
|  Recognition of gain or loss on the hedged items | Currency swaps | Loans and bills discounted, other securities | 38377 | 37743 | (4149) |
|  | Total |  | / | / | ¥(1498634) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note: The Company mainly applied deferred hedge accounting stipulated in JICPA Industry Committee Practical Guideline No. 25. |

---

—80—

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##### [**Table of Contents**](#toc)
**(Notes to employee retirement benefits)** 

**1. Outline of employee retirement benefits** 

The Company's consolidated subsidiaries have funded and unfunded contributory defined benefit pension plans and defined-contribution pension plans for benefit payments to their employees.

Funded contributory defined benefit pension plans mainly consist of contributory funded defined benefit pension plans and lump-sum severance indemnity plans which set up employee retirement benefit trusts.

Unfunded contributory defined benefit pension plans are lump-sum severance indemnity plans which do not use such a trust scheme.

Some consolidated subsidiaries adopt the simplified method in calculating the projected benefit obligation. Additional benefits may also be granted upon retirement.

**2. Contributory defined benefit pension plan** 

(1) Reconciliation of beginning and ending balances of projected benefit obligation

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2026** |
|  Beginning balance of projected benefit obligation | ¥944690 | ¥852205 |
| &nbsp;&nbsp;&nbsp;&nbsp; Service cost | 25662 | 22430 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest cost on projected benefit obligation | 12688 | 17723 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrecognized net actuarial gain or loss incurred | (70526) | (66212) |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments of retirement benefits | (59096) | (60520) |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrecognized prior service cost |  | 456 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | (1212) | 3977 |
|  Ending balance of projected benefit obligation | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;852205 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;770060 |
| (2) Reconciliation of beginning and ending balances of plan assets | (2) Reconciliation of beginning and ending balances of plan assets | (2) Reconciliation of beginning and ending balances of plan assets |
|  | **Millions of yen** | **Millions of yen** |
| **Year ended March 31** | **2025** | **2026** |
|  Beginning balance of plan assets | ¥1821219 | ¥1805602 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expected return on plan assets | 49395 | 71171 |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrecognized net actuarial gain or loss incurred | (35177) | 187731 |
| &nbsp;&nbsp;&nbsp;&nbsp; Contributions by the employer | 13923 | 13373 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payments of retirement benefits | (43657) | (45312) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | (101) | 2718 |
|  Ending balance of plan assets | ¥1805602 | ¥2035284 |

---

—81—

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##### [**Table of Contents**](#toc)
(3) Reconciliation of the ending balances of the projected benefit obligation and plan assets to the net defined benefit asset and net defined benefit liability reported on the consolidated balance sheets

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2026** |
|  Funded projected benefit obligation | ¥(828149) | ¥(748488) |
|  Plan assets | 1805602 | 2035284 |
|  | 977452 | 1286795 |
|  Unfunded projected benefit obligation | (24055) | (21572) |
|  Net amount of asset and liability reported on the consolidated balance sheet | ¥953397 | ¥1265223 |

---

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2026** |
|  Net defined benefit asset | ¥987288 | ¥1299540 |
|  Net defined benefit liability | (33890) | (34317) |
|  Net amount of asset and liability reported on the consolidated balance sheet | ¥953397 | ¥1265223 |

---

(4) Pension expenses

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2026** |
|  Service cost | ¥25662 | ¥22430 |
|  Interest cost on projected benefit obligation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12688 | 17723 |
|  Expected return on plan assets | (49395) | (71171) |
|  Amortization of unrecognized net actuarial gain or loss | (37973) | (62131) |
|  Amortization of unrecognized prior service cost | (2389) | (1933) |
|  Other (nonrecurring additional retirement allowance paid and other) | 8960 | 10927 |
|  Pension expenses | ¥(42448) | ¥(84154) |

---

Note: Pension expenses of consolidated subsidiaries which adopt the simplified method are mainly included in "Service cost."

(5) Remeasurements of defined benefit plans

The breakdown of "Remeasurements of defined benefit plans" (before deducting Income taxes and tax effect) was as shown below:

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31** | **2025** | **2026** |
|  Prior service cost | ¥2389 | ¥2389 |
|  Net actuarial gain or loss | 3075 | (191633) |
|  Total | ¥5464 | ¥(189243) |

---

(6) Accumulated remeasurements of defined benefit plans

The breakdown of "Accumulated remeasurements of defined benefit plans" (before deducting Income taxes and tax effect) was as shown below:

---

| | | |
|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** |
| <br>**March 31** | **2025** | **2026** |
|  Unrecognized prior service cost | ¥(9408) | ¥(7019) |
|  Unrecognized net actuarial gain or loss | (394898) | (586532) |
|  Total | ¥(404307) | ¥(593551) |

---

—82—

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##### [**Table of Contents**](#toc)
(7) Plan assets

1) Major asset classes of plan assets

The proportion of major asset classes to the total plan assets was as follows:

---

| | | |
|:---|:---|:---|
| **March 31** | **2025** | **2026** |
|  Stocks | 45.9% | 38.8% |
|  Bonds | 12.0% | 10.7% |
|  General account of life insurance | 1.2% | 1.1% |
|  Other | 40.9% | 49.4% |
|  Total | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.0% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100.0% |

---

---

| | |
|:---|:---|
| Note: | The retirement benefit trusts set up for employee pension plans and lump-sum severance indemnity plans account for 32.4% and 34.0% of the total plan assets at March 31, 2025 and 2026, respectively. |

---

2) Method for setting the long-term expected rate of return on plan assets

The long-term expected rate of return on plan assets is determined based on the current and expected allocation of plan assets and the current and expected long-term rates of return on various asset classes of plan assets.

(8) Actuarial assumptions

The principal assumptions used in determining benefit obligation and pension expenses were as follows:

1) Discount rate

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Percentages**  | **Year ended March 31, 2026** | **Percentages** |
|  Domestic consolidated subsidiaries | 0.5% to 1.9% | Domestic consolidated subsidiaries | 0.5% to 2.8% |
|  Overseas consolidated subsidiaries | 2.0% to 6.7% | Overseas consolidated subsidiaries | 2.0% to 6.9% |

---

2) Long-term expected rate of return on plan assets

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Percentages**  | **Year ended March 31, 2026** | **Percentages** |
|  Domestic consolidated subsidiaries | 0.0% to 3.2% | Domestic consolidated subsidiaries | 0.0% to 5.2% |
|  Overseas consolidated subsidiaries | 5.8% to 6.7% | Overseas consolidated subsidiaries | 6.0% to 6.9% |

---

**3. Defined contribution plan** 

***Fiscal year ended March 31, 2025***

The amount required to be contributed by the consolidated subsidiaries was ¥16,079 million.

***Fiscal year ended March 31, 2026***

The amount required to be contributed by the consolidated subsidiaries was ¥17,607 million.

—83—

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##### [**Table of Contents**](#toc)
**(Notes to stock options)** 

**Outline of stock options and changes** 

**1. The Company** 

(1) Outline of stock options

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of resolution** | **July 28, 2010** | **July 29, 2011** | **July 30, 2012** | **July 29, 2013** |
| Title and number<br>of grantees | Directors of the Company 8<br>Corporate auditors of<br>the Company 3<br>Executive officers of the Company 2<br>Directors, corporate auditors and executive officers of SMBC 69 | Directors of the Company 9<br>Corporate auditors of<br>the Company 3<br>Executive officers of the Company 2<br>Directors, corporate auditors and executive officers of SMBC 71 | Directors of the Company 9<br>Corporate auditors of<br>the Company 3<br>Executive officers of the Company 2<br>Directors, corporate auditors and executive officers of SMBC 71 | Directors of the Company 9<br>Corporate auditors of<br>the Company 3<br>Executive officers of the Company 3<br>Directors, corporate auditors and executive officers of SMBC 67 |
| Number of stock options<sup>\*1,2</sup> | Common shares<br>307,800 | Common shares<br>804,600 | Common shares<br>841,500 | Common shares<br>347,100 |
| Grant date | August 13, 2010 | August 16, 2011 | August 15, 2012 | August 14, 2013 |
| Condition for vesting | Stock acquisition right holders may exercise stock acquisition rights from the day when they<br>are relieved of their positions either as a director, corporate auditor or executive officer of the Company and SMBC. | Stock acquisition right holders may exercise stock acquisition rights from the day when they are relieved of their positions either as a director, corporate auditor or executive officer of the Company and SMBC. | Stock acquisition right holders may exercise stock acquisition rights from the day when they are relieved of their positions either as a director, corporate auditor or executive officer of the Company and SMBC. | Stock acquisition right holders may exercise stock acquisition rights from the day when they are relieved of their positions either as a director, corporate auditor or executive officer of the Company and SMBC. |
| Requisite service period | From June 29, 2010 to the closing of the ordinary general meeting of shareholders of the Company for the fiscal year ended March 31, 2011 | From June 29, 2011 to the closing of the ordinary general meeting of shareholders of the Company for the fiscal year ended March 31, 2012 | From June 28, 2012 to the closing of the ordinary general meeting of shareholders of the Company for the fiscal year ended March 31, 2013 | From June 27, 2013 to the closing of the ordinary general meeting of shareholders of the Company for the fiscal year ended March 31, 2014 |
| Exercise period | August 13, 2010 to<br>August 12, 2040 | August 16, 2011 to<br>August 15, 2041 | August 15, 2012 to<br>August 14, 2042 | August 14, 2013 to<br>August 13, 2043 |
| <br> **Date of resolution** | **July 30, 2014** | **July 31, 2015** | **July 26, 2016** |  |
| Title and number of grantees | Directors of the Company 10<br>Corporate auditors of<br>the Company 3<br>Executive officers of the Company 2<br>Directors, corporate auditors and executive officers of SMBC 67 | Directors of the Company 8<br>Corporate auditors of<br>the Company 3<br>Executive officers of the Company 4<br>Directors, corporate auditors and executive officers of SMBC 68 | Directors of the Company 8<br>Corporate auditors of<br>the Company 3<br>Executive officers of the Company 5<br>Directors, corporate auditors and executive officers of SMBC 73 |  |
| Number of stock options<sup>\*1,2</sup> | Common shares<br>365,700 | Common shares<br>397,200 | Common shares<br>603,600 |  |
| Grant date | August 15, 2014 | August 18, 2015 | August 15, 2016 |  |
| Condition for vesting | Stock acquisition right holders may exercise stock acquisition rights from the day when they are relieved of their positions either as a director, corporate auditor or executive officer of the Company and SMBC. | Stock acquisition right holders may exercise stock acquisition rights from the day when they are relieved of their positions either as a director, corporate auditor or executive officer of the Company and SMBC. | Stock acquisition right holders may exercise stock acquisition rights from the day when they are relieved of their positions either as a director, corporate auditor or executive officer of the Company and SMBC. |  |
| Requisite service period | From June 27, 2014 to the closing of the ordinary general meeting of shareholders of the Company for the fiscal year ended March 31, 2015 | From June 26, 2015 to the closing of the ordinary general meeting of shareholders of the Company for the fiscal year ended March 31, 2016 | From June 29, 2016 to the closing of the ordinary general meeting of shareholders of the Company for the fiscal year ended March 31, 2017 |  |
| Exercise period | August 15, 2014 to<br>August 14, 2044 | August 18, 2015 to<br>August 17, 2045 | August 15, 2016 to<br>August 14, 2046 |  |

---

\*1 Number of stock options has been converted and stated as number of shares.

\*2 On October 1, 2024, the Company executed a three-for-one split of its common stock, with a record date of September 30, 2024. The number of shares reflects the impact of the stock split.

—84—

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##### [**Table of Contents**](#toc)
(2) Stock options granted and changes

1) Number of stock options\*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Number of stock options** | **Number of stock options** | **Number of stock options** | **Number of stock options** | **Number of stock options** | **Number of stock options** | **Number of stock options** |
| <br>**Date of resolution** | **July 28,** <br>**2010** | **July 29,** <br>**2011** | **July 30,** <br>**2012** | **July 29,** <br>**2013** | **July 30, <br>2014** | **July 31, <br>2015** | **July 26, <br>2016** |
|  Before vested |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end | 4200 | 4200 | 2100 | 1200 | 22500 | 33000 | 69900 |
| &nbsp;&nbsp;&nbsp;&nbsp; Granted |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested | 4200 | 4200 | 2100 | 1200 | 4200 | 32400 | 39300 |
| &nbsp;&nbsp;&nbsp;&nbsp; Outstanding |  |  |  |  | 18300 | 600 | 30600 |
|  After vested |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end | 57900 | 214200 | 246000 | 77400 | 51300 | 33600 | 46200 |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested | 4200 | 4200 | 2100 | 1200 | 4200 | 32400 | 39300 |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercised | 21900 | 24000 | 16800 | 27600 | 16500 | 18900 | 44100 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercisable | 40200 | 194400 | 231300 | 51000 | 39000 | 47100 | 41400 |

---

\*1 Number of stock options has been converted and stated as number of shares.

\*2 On October 1, 2024, the Company executed a three-for-one split of its common stock, with a record date of September 30, 2024. The number of shares reflects the impact of the stock split.

2) Price information

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Yen** | **Yen** | **Yen** | **Yen** | **Yen** | **Yen** | **Yen** |
| <br>**Date of resolution** | **July 28,** <br>**2010** | **July 29, <br>2011** | **July 30, <br>2012** | **July 29, <br>2013** | **July 30, <br>2014** | **July 31, <br>2015** | **July 26, <br>2016** |
|  Exercise price | ¥1 | ¥1 | ¥1 | ¥1 | ¥1 | ¥1 | ¥1 |
|  Average exercise price | 4668 | 4802 | 4467 | 4051 | 4862 | 3416 | 3520 |
|  Fair value at the grant date | 738 | 624 | 681 | 1386 | 1220 | 1635 | 937 |

---

\* On October 1, 2024, the Company executed a three-for-one split of its common stock, with a record date of September 30, 2024. The stock price reflects the impact of the stock split.

(3) Method of estimating the number of stock options vested

Only the actual number of forfeited stock options is reflected, in principle, because it is difficult to rationally estimate the actual number of stock options that will be forfeited in the future.

—85—

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##### [**Table of Contents**](#toc)
**2. SMBC Wevox, Inc., a consolidated subsidiary of the Company** 

(1) Outline of stock options

---

| | | |
|:---|:---|:---|
| **Date of resolution** | **March 13, 2024** | **March 13, 2024** |
| Title and number of grantees | Directors | 2 |
| Number of stock options<sup>\*</sup> | Common shares | 40 |
| Grant date | March 13, 2024 | March 13, 2024 |
| Condition for vesting | 1) Upon exercising stock acquisition rights, the common shares of SMBC Wevox, Inc. shall be listed on the financial instruments exchanges in Japan, and the persons to whom stock acquisition rights are granted (hereinafter, "Grantee") may exercise them in accordance with the following periods and allotment ratio.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From the listing date up to and including the corresponding day of three years later 50% of the stock acquisition rights subscribed for by the Grantee upon allocation.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the following day of the above (a)<br>All of the stock acquisition rights subscribed for by the Grantee upon allocation.<br> 2) The Grantee is required to continuously hold the title of Director at SMBC Wevox, Inc. from the grant date of the stock acquisition rights until the time they are exercised. However, this is not the case if approved by the Board of Directors.<br> 3) If the common shares of SMBC Wevox, Inc. are delisted from the financial instruments exchanges in Japan after being listed, the Grantee will not be able to exercise their stock acquisition rights.<br> 4) If the Grantee dies, the heirs of the Grantee cannot exercise the stock acquisition rights. However, if approved by the Board of Directors, the heirs of the Grantee may exercise the stock acquisition rights.<br> 5) The Grantee may not exercise stock acquisition rights during any year (calendar year) within the exercise period if the total exercise amount of the stock acquisition rights exceeds 12 million yen per year (or the revised amount if amendments are made to the Special Taxation Measures Law).<br> 6) Other conditions shall be as stipulated in the stock acquisition rights allotment agreement concluded between SMBC Wevox, Inc. and the Grantee based on the resolution of the Board of Directors. | 1) Upon exercising stock acquisition rights, the common shares of SMBC Wevox, Inc. shall be listed on the financial instruments exchanges in Japan, and the persons to whom stock acquisition rights are granted (hereinafter, "Grantee") may exercise them in accordance with the following periods and allotment ratio.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From the listing date up to and including the corresponding day of three years later 50% of the stock acquisition rights subscribed for by the Grantee upon allocation.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the following day of the above (a)<br>All of the stock acquisition rights subscribed for by the Grantee upon allocation.<br> 2) The Grantee is required to continuously hold the title of Director at SMBC Wevox, Inc. from the grant date of the stock acquisition rights until the time they are exercised. However, this is not the case if approved by the Board of Directors.<br> 3) If the common shares of SMBC Wevox, Inc. are delisted from the financial instruments exchanges in Japan after being listed, the Grantee will not be able to exercise their stock acquisition rights.<br> 4) If the Grantee dies, the heirs of the Grantee cannot exercise the stock acquisition rights. However, if approved by the Board of Directors, the heirs of the Grantee may exercise the stock acquisition rights.<br> 5) The Grantee may not exercise stock acquisition rights during any year (calendar year) within the exercise period if the total exercise amount of the stock acquisition rights exceeds 12 million yen per year (or the revised amount if amendments are made to the Special Taxation Measures Law).<br> 6) Other conditions shall be as stipulated in the stock acquisition rights allotment agreement concluded between SMBC Wevox, Inc. and the Grantee based on the resolution of the Board of Directors. |
| Requisite service period | Not specified | Not specified |
| Exercise period | March 14, 2027 to March 13, 2034 | March 14, 2027 to March 13, 2034 |

---

\* Number of stock options has been converted and stated as number of shares.

(2) Stock options granted and changes

1) Number of stock options\*

---

| | |
|:---|:---|
| | **Number of stock options** |
| <br>**Date of resolution** | **March 13, 2024** |
|  Before vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp; Granted |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Outstanding | 40 |
|  After vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercisable |  |
| \* Number of stock options has been converted and stated as number of shares. | \* Number of stock options has been converted and stated as number of shares. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Price information | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Price information |
|  | **Yen** |
| **Date of resolution** | **March 13, 2024** |
|  Exercise price | ¥100000 |
|  Average exercise price |  |
|  Fair value at the grant date |  |

---

—86—

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##### [**Table of Contents**](#toc)
(3) Method of estimating fair unit value of stock options

As SMBC Wevox, Inc. was a private company at the time of granting stock options, the fair unit value of the stock options is calculated based on the intrinsic value per unit. In addition, the valuation method for the company's own shares, which forms the basis for calculating the intrinsic value per unit, uses the price calculated by the net asset method.

(4) Method of estimating the number of stock options vested

Only the actual number of forfeited stock options is reflected, in principle, because it is difficult to rationally estimate the actual number of stock options that will be forfeited in the future.

(5) The total intrinsic value at the end of the fiscal year ended March 31, 2026 based on the intrinsic value
of the stock options, and the total intrinsic value on the exercise date of stock options that had been exercised during the fiscal year ended March 31, 2026.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1) The total intrinsic value at the end of the fiscal year ended March 31, 2026 | — million yen  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) The total intrinsic value exercised during the fiscal year ended March 31, 2026 | — million yen |

---

**3. SMBC Legal X, Inc., a consolidated subsidiary of the Company** 

(1) Outline of stock options

---

| | | |
|:---|:---|:---|
| **Date of resolution** | **November 28, 2025** | **November 28, 2025** |
| Title and number of grantees | Directors | 2 |
| Number of stock options<sup>\*</sup> | Common shares | 2060000 |
| Grant date | November 28, 2025 | November 28, 2025 |
| Condition for vesting | 1) Upon exercising stock acquisition rights, the common shares of SMBC Legal X, Inc. shall be listed on the financial instruments exchanges in Japan.<br> 2) The Grantee must, continuously from the date of grant of the stock acquisition rights until the date of exercise thereof, hold a position as a Director, Audit & Supervisory Board Member, Executive Officer, or employee of SMBC Legal X, Inc., Sumitomo Mitsui Financial Group, Inc., or any of its subsidiaries and affiliates. However, this requirement shall not apply if otherwise approved by the Board of Directors.<br> 3) If the common shares of SMBC Legal X, Inc. are delisted from the financial instruments exchanges in Japan after being listed, the Grantee will not be able to exercise their stock acquisition rights.<br> 4) If the Grantee dies, the heirs of the Grantee cannot exercise the stock acquisition rights. However, if approved by the Board of Directors, the heirs of the Grantee may exercise the stock acquisition rights.<br> 5) The Grantee may exercise the stock acquisition rights only if, and to the extent that, the requirements prescribed in Article 29-2 of the Act on Special Measures Concerning Taxation and related cabinet orders and circular notices are satisfied. The Grantee shall not exercise the stock acquisition rights to the extent that the aggregated exercise price for any year would exceed the limit prescribed under the Act and related regulations.<br> 6) Other conditions shall be as stipulated in the stock acquisition rights allotment agreement concluded between SMBC Legal X, Inc. and the Grantee based on the resolution of the Board of Directors. | 1) Upon exercising stock acquisition rights, the common shares of SMBC Legal X, Inc. shall be listed on the financial instruments exchanges in Japan.<br> 2) The Grantee must, continuously from the date of grant of the stock acquisition rights until the date of exercise thereof, hold a position as a Director, Audit & Supervisory Board Member, Executive Officer, or employee of SMBC Legal X, Inc., Sumitomo Mitsui Financial Group, Inc., or any of its subsidiaries and affiliates. However, this requirement shall not apply if otherwise approved by the Board of Directors.<br> 3) If the common shares of SMBC Legal X, Inc. are delisted from the financial instruments exchanges in Japan after being listed, the Grantee will not be able to exercise their stock acquisition rights.<br> 4) If the Grantee dies, the heirs of the Grantee cannot exercise the stock acquisition rights. However, if approved by the Board of Directors, the heirs of the Grantee may exercise the stock acquisition rights.<br> 5) The Grantee may exercise the stock acquisition rights only if, and to the extent that, the requirements prescribed in Article 29-2 of the Act on Special Measures Concerning Taxation and related cabinet orders and circular notices are satisfied. The Grantee shall not exercise the stock acquisition rights to the extent that the aggregated exercise price for any year would exceed the limit prescribed under the Act and related regulations.<br> 6) Other conditions shall be as stipulated in the stock acquisition rights allotment agreement concluded between SMBC Legal X, Inc. and the Grantee based on the resolution of the Board of Directors. |
| Requisite service period | Not specified | Not specified |
| Exercise period | November 29, 2027 to November 28, 2040 | November 29, 2027 to November 28, 2040 |

---

\* Number of stock options has been converted and stated as number of shares.

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##### [**Table of Contents**](#toc)
(2) Stock options granted and changes

1) Number of stock options\*

---

| | |
|:---|:---|
| | **Number of stock options** |
| <br>**Date of resolution** | **November 28, 2025** |
|  Before vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Granted | 2060000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Outstanding | 2060000 |
|  After vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercisable |  |
| \* Number of stock options has been converted and stated as number of shares. | \* Number of stock options has been converted and stated as number of shares. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Price information | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) Price information |
|  | **Yen** |
| **Date of resolution** | **November 28, 2025** |
|  Exercise price | ¥100 |
|  Average exercise price |  |
|  Fair value at the grant date |  |

---

(3) Method of estimating fair unit value of stock options

As SMBC Legal X, Inc. was a private company at the time of granting stock options, the fair unit value of the stock options is calculated based on the intrinsic value per unit. In addition, the valuation method for the company's own shares, which forms the basis for calculating the intrinsic value per unit, uses the price calculated by the net asset method.

(4) Method of estimating the number of stock options vested

Only the actual number of forfeited stock options is reflected, in principle, because it is difficult to rationally estimate the actual number of stock options that will be forfeited in the future.

(5) The total intrinsic value at the end of the fiscal year ended March 31, 2026 based on the intrinsic value
of the stock options, and the total intrinsic value on the exercise date of stock options that had been exercised during the fiscal year ended March 31, 2026.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1) The total intrinsic value at the end of the fiscal year ended March 31, 2026 | — million yen |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) The total intrinsic value exercised during the fiscal year ended March 31, 2026 | — million yen |

---

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##### [**Table of Contents**](#toc)
**4. QUADRAC Co., Ltd., a consolidated subsidiary of the Company** 

(1) Outline of stock options

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of resolution** | **July 12, 2024** | **July 12, 2024** | **March 25, 2025** | **September 30, 2025** |
| Title and number of grantees | Directors 2<br> Employees 7 | Directors 2<br> Employees 37 | Directors 2<br> Employees 51 | Employees 14 |
| Number of stock options<sup>\*</sup> | Common shares<br>4,046 | Common shares<br>2,500 | Common shares<br>6,900 | Common shares<br>1,500 |
| Grant date | July 12, 2024 | July 12, 2024 | March 25, 2025 | October 1, 2025 |
| Condition for vesting | 1) If the person to whom stock acquisition rights are granted (hereinafter, "Grantee") ceases to hold a position as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. after the allotment of the stock acquisition rights, the Grantee may not exercise the stock acquisition rights on or after the date of such loss of position. However, this restriction does not apply in the following cases:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Grantee is reappointed or rehired as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. immediately after resignation or retirement from QUADRAC Co., Ltd., unless otherwise declared by the Board of Directors of QUADRAC Co., Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Grantee retires from office upon expiration of the Grantee's term of office, retires upon reaching the mandatory retirement age, retires upon the expiration of the reemployment period, or otherwise ceases to hold such position for any other justifiable reason as recognized by the Board of Directors of QUADRAC Co., Ltd.<br> 2) If the Grantee dies, the heir or heirs of the Grantee, as approved by the Board of Directors of QUADRAC Co., Ltd., may succeed to the stock acquisition rights. The heir or heirs may exercise the stock acquisition rights, provided that they comply with the provisions of the stock acquisition rights allotment agreement to be entered into between QUADRAC Co., Ltd. and the Grantee.<br> 3) The stock acquisition rights may not be exercised if such exercise would cause the total number of issued shares of QUADRAC Co., Ltd. to exceed the total number of authorized shares at that time.<br> 4) The stock acquisition rights may not be exercised in part.<br> 5) The stock acquisition rights may be exercised only if the shares of QUADRAC Co., Ltd. have been publicly listed.<br> 6) Notwithstanding the preceding item, this item applies if a transaction is conducted involving the issuance or transfer of shares, corporate reorganization, or any other transaction to which QUADRAC Co., Ltd. is a party or in which QUADRAC Co., Ltd. is the target company, and, as a result of such transaction, a third party would acquire a majority of the voting rights of all shareholders of QUADRAC Co., Ltd., including those held by its affiliates or relatives. If, immediately before such transaction, shareholders who collectively hold a majority of the common shares of QUADRAC Co., Ltd. request the Grantee to participate in such transaction by exercising the stock acquisition rights, the Grantee may exercise all of the stock acquisition rights, provided that the Grantee satisfies the other conditions for exercising the stock acquisition rights. | 1) If the person to whom stock acquisition rights are granted (hereinafter, "Grantee") ceases to hold a position as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. after the allotment of the stock acquisition rights, the Grantee may not exercise the stock acquisition rights on or after the date of such loss of position. However, this restriction does not apply in the following cases:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Grantee is reappointed or rehired as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. immediately after resignation or retirement from QUADRAC Co., Ltd., unless otherwise declared by the Board of Directors of QUADRAC Co., Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Grantee retires from office upon expiration of the Grantee's term of office, retires upon reaching the mandatory retirement age, retires upon the expiration of the reemployment period, or otherwise ceases to hold such position for any other justifiable reason as recognized by the Board of Directors of QUADRAC Co., Ltd.<br> 2) If the Grantee dies, the heir or heirs of the Grantee, as approved by the Board of Directors of QUADRAC Co., Ltd., may succeed to the stock acquisition rights. The heir or heirs may exercise the stock acquisition rights, provided that they comply with the provisions of the stock acquisition rights allotment agreement to be entered into between QUADRAC Co., Ltd. and the Grantee.<br> 3) The stock acquisition rights may not be exercised if such exercise would cause the total number of issued shares of QUADRAC Co., Ltd. to exceed the total number of authorized shares at that time.<br> 4) The stock acquisition rights may not be exercised in part.<br> 5) The stock acquisition rights may be exercised only if the shares of QUADRAC Co., Ltd. have been publicly listed.<br> 6) Notwithstanding the preceding item, this item applies if a transaction is conducted involving the issuance or transfer of shares, corporate reorganization, or any other transaction to which QUADRAC Co., Ltd. is a party or in which QUADRAC Co., Ltd. is the target company, and, as a result of such transaction, a third party would acquire a majority of the voting rights of all shareholders of QUADRAC Co., Ltd., including those held by its affiliates or relatives. If, immediately before such transaction, shareholders who collectively hold a majority of the common shares of QUADRAC Co., Ltd. request the Grantee to participate in such transaction by exercising the stock acquisition rights, the Grantee may exercise all of the stock acquisition rights, provided that the Grantee satisfies the other conditions for exercising the stock acquisition rights. | 1) If the person to whom stock acquisition rights are granted (hereinafter, "Grantee") ceases to hold a position as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. after the allotment of the stock acquisition rights, the Grantee may not exercise the stock acquisition rights on or after the date of such loss of position. However, this restriction does not apply in the following cases:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Grantee is reappointed or rehired as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. immediately after resignation or retirement from QUADRAC Co., Ltd., unless otherwise declared by the Board of Directors of QUADRAC Co., Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Grantee retires from office upon expiration of the Grantee's term of office, retires upon reaching the mandatory retirement age, retires upon the expiration of the reemployment period, or otherwise ceases to hold such position for any other justifiable reason as recognized by the Board of Directors of QUADRAC Co., Ltd.<br> 2) If the Grantee dies, the heir or heirs of the Grantee, as approved by the Board of Directors of QUADRAC Co., Ltd., may succeed to the stock acquisition rights. The heir or heirs may exercise the stock acquisition rights, provided that they comply with the provisions of the stock acquisition rights allotment agreement to be entered into between QUADRAC Co., Ltd. and the Grantee.<br> 3) The stock acquisition rights may not be exercised if such exercise would cause the total number of issued shares of QUADRAC Co., Ltd. to exceed the total number of authorized shares at that time.<br> 4) The stock acquisition rights may not be exercised in part.<br> 5) The stock acquisition rights may be exercised only if the shares of QUADRAC Co., Ltd. have been publicly listed.<br> 6) Notwithstanding the preceding item, this item applies if a transaction is conducted involving the issuance or transfer of shares, corporate reorganization, or any other transaction to which QUADRAC Co., Ltd. is a party or in which QUADRAC Co., Ltd. is the target company, and, as a result of such transaction, a third party would acquire a majority of the voting rights of all shareholders of QUADRAC Co., Ltd., including those held by its affiliates or relatives. If, immediately before such transaction, shareholders who collectively hold a majority of the common shares of QUADRAC Co., Ltd. request the Grantee to participate in such transaction by exercising the stock acquisition rights, the Grantee may exercise all of the stock acquisition rights, provided that the Grantee satisfies the other conditions for exercising the stock acquisition rights. | 1) If the person to whom stock acquisition rights are granted (hereinafter, "Grantee") ceases to hold a position as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. after the allotment of the stock acquisition rights, the Grantee may not exercise the stock acquisition rights on or after the date of such loss of position. However, this restriction does not apply in the following cases:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Grantee is reappointed or rehired as a Director, Executive Officer, or employee of QUADRAC Co., Ltd. immediately after resignation or retirement from QUADRAC Co., Ltd., unless otherwise declared by the Board of Directors of QUADRAC Co., Ltd.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Grantee retires from office upon expiration of the Grantee's term of office, retires upon reaching the mandatory retirement age, retires upon the expiration of the reemployment period, or otherwise ceases to hold such position for any other justifiable reason as recognized by the Board of Directors of QUADRAC Co., Ltd.<br> 2) If the Grantee dies, the heir or heirs of the Grantee, as approved by the Board of Directors of QUADRAC Co., Ltd., may succeed to the stock acquisition rights. The heir or heirs may exercise the stock acquisition rights, provided that they comply with the provisions of the stock acquisition rights allotment agreement to be entered into between QUADRAC Co., Ltd. and the Grantee.<br> 3) The stock acquisition rights may not be exercised if such exercise would cause the total number of issued shares of QUADRAC Co., Ltd. to exceed the total number of authorized shares at that time.<br> 4) The stock acquisition rights may not be exercised in part.<br> 5) The stock acquisition rights may be exercised only if the shares of QUADRAC Co., Ltd. have been publicly listed.<br> 6) Notwithstanding the preceding item, this item applies if a transaction is conducted involving the issuance or transfer of shares, corporate reorganization, or any other transaction to which QUADRAC Co., Ltd. is a party or in which QUADRAC Co., Ltd. is the target company, and, as a result of such transaction, a third party would acquire a majority of the voting rights of all shareholders of QUADRAC Co., Ltd., including those held by its affiliates or relatives. If, immediately before such transaction, shareholders who collectively hold a majority of the common shares of QUADRAC Co., Ltd. request the Grantee to participate in such transaction by exercising the stock acquisition rights, the Grantee may exercise all of the stock acquisition rights, provided that the Grantee satisfies the other conditions for exercising the stock acquisition rights. |
| Requisite service period |  | Not specified | Not specified |  |
| Exercise period | July 13, 2026 to<br>July 12, 2034 | July 13, 2026 to<br>July 12, 2034 | March 26, 2027 to<br>March 25, 2035 | October 1, 2027 to<br>September 30, 2035 |

---

\* Number of stock options has been converted and stated as number of shares.

(2) Stock options granted and changes

1) Number of stock options\*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of stock options** | **Number of stock options** | **Number of stock options** | **Number of stock options** |
| <br>**Date of resolution** | **July 12, 2024** | **July 12, 2024** | **March 25, 2025** | **September 30, 2025** |
|  Before vested |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end | 4046 | 2500 | 6900 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Granted |  |  |  | 1500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  | 150 | 300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Outstanding | 4046 | 2350 | 6600 | 1500 |
|  After vested |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Previous fiscal year-end |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Vested |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercised |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Forfeited |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Exercisable |  |  |  |  |

---

\* Number of stock options has been converted and stated as number of shares.

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##### [**Table of Contents**](#toc)
2) Price information

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Yen** | **Yen** | **Yen** | **Yen** | **Yen** | **Yen** | **Yen** | **Yen** |
| <br>**Date of resolution** | **July 12, 2024** | **July 12, 2024** | **July 12, 2024** | **July 12, 2024** | **March 25, 2025** | **March 25, 2025** | **September 30, 2025** | **September 30, 2025** |
|  Exercise price | ¥ | 19715 | ¥ | 19715 | ¥ | 19715 | ¥ | 19715 |
|  Average exercise price |  |  |  |  |  |  |  |  |
|  Fair value at the grant date |  |  |  |  |  |  |  |  |

---

(3) Method of estimating fair unit value of stock options

As QUADRAC Co., Ltd. was a private company at the time of granting stock options, the fair unit value of the stock options is calculated based on the intrinsic value per unit. In addition, the valuation method for the company's own shares, which forms the basis for calculating the intrinsic value per unit, uses the price calculated by the DCF method.

(4) Method of estimating the number of stock options vested

Only the actual number of forfeited stock options is reflected, in principle, because it is difficult to rationally estimate the actual number of stock options that will be forfeited in the future.

(5) The total intrinsic value at the end of the fiscal year ended March 31, 2026 based on the intrinsic value
of the stock options, and the total intrinsic value on the exercise date of stock options that had been exercised during the fiscal year ended March 31, 2026.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1) The total intrinsic value at the end of the fiscal year ended March 31, 2026 | — million yen  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2) The total intrinsic value exercised during the fiscal year ended March 31, 2026 | — million yen |

---

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##### [**Table of Contents**](#toc)
**(Notes to deferred tax assets and liabilities)** 

**1. Breakdown of deferred tax assets and liabilities by major components** 

---

| | | | |
|:---|:---|:---|:---|
| **March 31, 2025** | **Millions of yen** | **March 31, 2026** | **Millions of yen** |
|  Deferred tax assets: |  | Deferred tax assets: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for possible loan losses and write-off of loans | ¥364092 | &nbsp;&nbsp;&nbsp;&nbsp; Reserve for possible loan losses and write-off of loans | ¥403804 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net deferred gains (losses) on hedge | 78450 | &nbsp;&nbsp;&nbsp;&nbsp; Net deferred gains (losses) on hedge | 145358 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserve for losses on interest repayment | 76137 | &nbsp;&nbsp;&nbsp;&nbsp; Reserve for losses on interest repayment | 71469 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net operating loss carryforwards<sup>\*</sup> | 35183 | &nbsp;&nbsp;&nbsp;&nbsp; Securities | 59597 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities | 28128 | &nbsp;&nbsp;&nbsp;&nbsp; Net operating loss carryforwards<sup>\*</sup> | 38716 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 361453 | &nbsp;&nbsp;&nbsp;&nbsp; Other | 376629 |
| &nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 943445 | &nbsp;&nbsp;&nbsp;&nbsp; Subtotal | 1095575 |
| &nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance for net operating loss carryforwards<sup>\*</sup> | (31474) | &nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance for net operating loss carryforwards<sup>\*</sup> | (34479) |
| &nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance for total amount of deductible temporary differences etc. | (129686) | &nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance for total amount of deductible temporary differences etc. | (160530) |
|  Valuation allowance subtotal | (161161) | Valuation allowance subtotal | (195009) |
|  Total deferred tax assets | 782283 | Total deferred tax assets | 900565 |
|  Deferred tax liabilities: |  | Deferred tax liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on other securities | (729733) | &nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains on other securities | (885583) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated remeasurements of defined benefit plans | (127104) | &nbsp;&nbsp;&nbsp;&nbsp; Accumulated remeasurements of defined benefit plans | (189476) |
| &nbsp;&nbsp;&nbsp;&nbsp; Retained earnings of subsidiaries | (74643) | &nbsp;&nbsp;&nbsp;&nbsp; Retained earnings of subsidiaries | (87087) |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | (201592) | &nbsp;&nbsp;&nbsp;&nbsp; Other | (248520) |
|  Total deferred tax liabilities | (1133072) | Total deferred tax liabilities | (1410667) |
|  Net deferred tax assets (liabilities) | ¥(350788) | Net deferred tax assets (liabilities) | ¥(510101) |

---

\* Net operating loss carryforwards and related deferred tax assets by expiration date.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**March 31, 2025** | **Within 1 year** | **More than 1<br>year to 5 years** | **More than 5<br>years to 10<br>years** | **More than 10<br>years** | **Total** |
|  Net operating loss carryforwards\* | ¥1221 | ¥15350 | ¥13312 | ¥5298 | ¥35183 |
|  Valuation allowance | (1141) | (14889) | (12136) | (3307) | (31474) |
|  Deferred tax assets | 79 | 460 | 1176 | 1991 | 3708 |
| <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate |
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **March 31, 2026** | **Within 1 year** | **More than 1<br>year to 5 years** | **More than 5<br>years to 10<br>years** | **More than 10<br>years** | **Total** |
|  Net operating loss carryforwards\* | ¥5635 | ¥11440 | ¥13928 | ¥7712 | ¥38716 |
|  Valuation allowance | (5628) | (10243) | (13813) | (4793) | (34479) |
|  Deferred tax assets | 7 | 1196 | 114 | 2918 | 4237 |
| <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate. | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate. | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate. | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate. | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate. | <br> \* Net operating loss carryforwards are presented after applying the statutory effective tax rate. |

---

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##### [**Table of Contents**](#toc)
**2. Breakdown of major components of differences between the Company's statutory tax rate and the effective income tax rate** 

---

| | | | |
|:---|:---|:---|:---|
| **March 31, 2025** | **Percentages** | **March 31, 2026** | **Percentages** |
|  Statutory tax rate | 30.62% | Statutory tax rate | 30.62% |
| &nbsp;&nbsp;&nbsp;&nbsp;(Adjustments) |  | &nbsp;&nbsp;&nbsp;&nbsp;(Adjustments) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Difference between the Company and overseas consolidated subsidiaries | (1.38) | &nbsp;&nbsp;&nbsp;&nbsp; Equity in gains of affiliates | (1.87) |
| &nbsp;&nbsp;&nbsp;&nbsp; Differences of the scope of taxable income between corporate income tax and enterprise income tax | (1.21) | &nbsp;&nbsp;&nbsp;&nbsp; Differences of the scope of taxable income between corporate income tax and enterprise income tax | (0.96) |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends exempted for income tax purposes | (1.03) | &nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | 1.20 |
| &nbsp;&nbsp;&nbsp;&nbsp; Valuation allowance | 2.17 | &nbsp;&nbsp;&nbsp;&nbsp; Other | 0.63 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | 1.01 | &nbsp;&nbsp;&nbsp;&nbsp; Effective income tax rate | 29.62% |
| &nbsp;&nbsp;&nbsp;&nbsp; Effective income tax rate | 30.18% |  |  |

---

**3. Accounting treatment for corporate tax, local corporate tax and related tax effect accounting** 

The Company and certain domestic consolidated subsidiaries apply the group tax sharing system. Accordingly, corporate tax, local corporate tax, and tax effect accounting related thereto are accounted for and disclosed in accordance with "Practical Solution on the Accounting and Disclosure Under the Group Tax Sharing System" (ASBJ Practical Issue Task Force No. 42, August 12, 2021).

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##### [**Table of Contents**](#toc)
**(Notes to asset retirement obligations)** 

***Fiscal year ended March 31, 2025***

There was no information to be disclosed since the total amount of asset retirement obligations was immaterial.

***Fiscal year ended March 31, 2026***

There was no information to be disclosed since the total amount of asset retirement obligations was immaterial.

**(Notes to real estate for rent)** 

***Fiscal year ended March 31, 2025***

There was no significant information to be disclosed.

***Fiscal year ended March 31, 2026***

There was no significant information to be disclosed.

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##### [**Table of Contents**](#toc)
**(Revenue recognition)** 

Information on breakdown of revenues from contracts with customers.

---

| | | |
|:---|:---|:---|
| **Year ended March 31** | **Millions of yen** | **Millions of yen** |
|  | **2025** | **2026** |
|  Ordinary income | ¥10174894 | ¥10790853 |
| &nbsp;&nbsp;&nbsp;&nbsp; Fees and commissions | 1874934 | 2110110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deposits and loans | 329845 | 368608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remittances and transfers | 158967 | 165492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities-related business | 249683 | 302623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agency | 8608 | 8293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Safe deposits | 4025 | 3638 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Guarantees | 91190 | 95949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Credit card business | 483539 | 515672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment trusts | 191627 | 223805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Others | 357446 | 426026 |

---

---

| | |
|:---|:---|
| Note: | Fees and commissions obtained through Deposits and loans principally arise in the Wholesale Business Unit and the Global Business Unit, Remittances and transfers principally arise in the Wholesale Business Unit, the Retail Business Unit, and the Global Business Unit, Securities-related business principally arise in the Wholesale Business Unit, the Retail Business Unit, and the Global Business Unit, Credit card business principally arise in the Retail Business Unit, and Investment trusts principally arise in the Retail Business Unit and Head office account and others. Income based on "Accounting Standard for Financial Instruments" (ASBJ Statement No. 10, July 4, 2019) is also included in the table above.  |

---

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##### [**Table of Contents**](#toc)
**(Notes to segment and other related information)** 

**[Segment information]** 

**1. Summary of reportable segment** 

The Group's reportable segment is defined as an operating segment for which discrete financial information is available and reviewed by the Board of Directors and the Company's Management Committee regularly in order to make decisions about resources to be allocated to the segment and assess its performance.

The businesses operated by each business unit are as follows:

---

| | |
|:---|:---|
| Wholesale Business Unit:<br>| Business to deal with domestic medium-to-large-sized and small-to-medium-sized corporate customers |
| Retail Business Unit:<br>| Business to deal with mainly domestic individual customers |
| Global Business Unit:<br>| Business to deal with international (including Japanese) corporate customers in overseas countries |
| Global Markets Business Unit:<br>| Business to deal with financial market |
| Head office account: | Business other than businesses above |

---

**2. Method of calculating profit and loss by reportable segment** 

The accounting methods applied to reportable segments are generally the same as those described in "(Significant accounting policies for preparing consolidated financial statements)."

When transactions are obtained through collaboration among multiple business units, the amounts calculated based on actual revenues are allocated to the collaborating business units in accordance with internal managerial accounting policies.

The Company does not assess assets by business segments.

—95—

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##### [**Table of Contents**](#toc)
**3. Information on profit and loss by reportable segment** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31, 2025** | **Wholesale<br>Business<br>Unit** | **Retail<br>Business<br>Unit** | **Global<br>Business<br>Unit** | **Global Markets<br>Business<br>Unit** | **Head office<br>account and<br>others** | **Total** |
|  Consolidated gross profit | ¥&nbsp;&nbsp;&nbsp;&nbsp;931300 | ¥1377300 | ¥1344900 | ¥636600 | ¥(163354) | ¥4126746 |
|  General and administrative expenses | (328100) | (1110300) | (903300) | (196000) | 135745 | (2401955) |
|  Others | 126000 | 6800 | 150400 | 33900 | (322604) | (5504) |
|  Consolidated net business profit | ¥729200 | ¥273800 | ¥592000 | ¥474500 | ¥(350214) | ¥1719286 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | Figures shown in parentheses represent losses. |
|  | 2. | "Others" includes equity in profit and loss of affiliates and cooperated profit and loss based on internal managerial accounting. |
|  | 3. | "Head office account and others" includes profit or loss to be eliminated as inter-segment transactions. |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31, 2026** | **Wholesale<br>Business<br>Unit** | **Retail<br>Business<br>Unit** | **Global<br>Business<br>Unit** | **Global Markets<br>Business<br>Unit** | **Head office<br>account and<br>others** | **Total** |
|  Consolidated gross profit | ¥1253400 | ¥1555600 | ¥1550900 | ¥697800 | ¥(213007) | ¥4844693 |
|  General and administrative expenses | (407900) | (1134600) | (1063400) | (228500) | 182886 | (2651514) |
|  Others | 151600 | 6700 | 168300 | 39400 | (228290) | 137710 |
|  Consolidated net business profit | ¥997100 | ¥427700 | ¥655800 | ¥508700 | ¥(258410) | ¥2330890 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | Figures shown in parentheses represent losses. |
|  | 2. | "Others" includes equity in profit and loss of affiliates and cooperated profit and loss based on internal managerial accounting. |
|  | 3. | "Head office account and others" includes profit or loss to be eliminated as inter-segment transactions. |

---

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**4.** **Reconciliation of consolidated net business profit by reportable segment to ordinary profit on the consolidated statements of income** 

---

| | |
|:---|:---|
| **Year ended March 31, 2025** | **Millions of yen** |
|  Consolidated net business profit | ¥1719286 |
|  Other ordinary income | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;620428 |
|  Other ordinary expenses (excluding equity in losses of affiliates) | (620232) |
|  Ordinary profit on consolidated statements of income | ¥1719482 |

---

Note: Figures shown in parentheses represent losses.

---

| | |
|:---|:---|
| **Year ended March 31, 2026** | **Millions of yen** |
|  Consolidated net business profit | ¥2330890 |
|  Other ordinary income (excluding equity in gains of affiliates) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;577704 |
|  Other ordinary expenses | (605243) |
|  Ordinary profit on consolidated statements of income | ¥2303350 |

---

Note: Figures shown in parentheses represent losses.

—97—

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**[Related information]** 

***Fiscal year ended March 31, 2025***

**1. Information on each service** 

There was no information to be disclosed since information on each service was similar to the segment information.

**2. Geographic information** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Ordinary income

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Japan** | **The Americas** | **Europe and Middle East** | **Asia and Oceania** | **Total** |
| ¥ 4,540,239 | ¥ 2,496,564 | ¥ 1,471,305 | ¥ 1,666,786 | ¥ 10,174,894 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | Consolidated ordinary income is presented instead of sales of companies in other industries. |
|  | 2. | Ordinary income arising from transactions of the Company, its domestic consolidated banking subsidiaries (excluding overseas branches), and other domestic consolidated subsidiaries is classified as "Japan." Ordinary income arising from transactions of overseas branches of domestic consolidated banking subsidiaries and overseas consolidated subsidiaries is classified as "The Americas," "Europe and Middle East," and "Asia and Oceania," based on their locations, taking into account geographic proximity and other factors. |
|  | 3. | The Americas includes the United States, Brazil, Canada and others; Europe and Middle East includes the United Kingdom, Germany, and others; Asia and Oceania includes China, Singapore, Indonesia, and others except Japan. |
|  | 4. | Ordinary income in the United States within the "The Americas" segment amounted to ¥2,273,404 million. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Tangible fixed assets

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Japan** | **The Americas** | **Europe and Middle East** | **Asia and Oceania** | **Total** |
| ¥ 851,529 | ¥ 50,664 | ¥ 38,516 | ¥ 65,845 | ¥ 1,006,556 |

---

**3. Information on major customers** 

There were no major customers individually accounting for 10% or more of ordinary income reported on the consolidated statements of income.

—98—

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***Fiscal year ended March 31, 2026***

**1. Information on each service** 

There was no information to be disclosed since information on each service was similar to the segment information.

**2. Geographic information** 

&nbsp;&nbsp;&nbsp;&nbsp;(1) Ordinary income

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Japan** | **The Americas** | **Europe and Middle East** | **Asia and Oceania** | **Total** |
| ¥ 5,051,761 | ¥ 2,568,458 | ¥ 1,487,784 | ¥ 1,682,849 | ¥ 10,790,853 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | Consolidated ordinary income is presented instead of sales of companies in other industries. |
|  | 2. | Ordinary income arising from transactions of the Company, its domestic consolidated banking subsidiaries (excluding overseas branches), and other domestic consolidated subsidiaries is classified as "Japan." Ordinary income arising from transactions of overseas branches of domestic consolidated banking subsidiaries and overseas consolidated subsidiaries is classified as "The Americas," "Europe and Middle East," and "Asia and Oceania," based on their locations, taking into account geographic proximity and other factors. |
|  | 3. | The Americas includes the United States, Brazil, Canada and others; Europe and Middle East includes the United Kingdom, Germany, and others; Asia and Oceania includes China, Singapore, Indonesia, and others except Japan. |
|  | 4. | Ordinary income in the United States within the "The Americas" segment amounted to ¥2,308,686 million. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(2) Tangible fixed assets

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Japan** | **The Americas** | **Europe and Middle East** | **Asia and Oceania** | **Total** |
| ¥ 885,817 | ¥ 72,058 | ¥ 37,703 | ¥ 79,092 | ¥ 1,074,673 |

---

**3. Information on major customers** 

There were no major customers individually accounting for 10% or more of ordinary income reported on the consolidated statements of income.

**[Information on impairment losses for fixed assets by reportable segment]** 

The Company does not allocate impairment losses for fixed assets to the reportable segments.

Impairment losses for the fiscal year ended March 31, 2025 was ¥7,052 million.

Impairment losses for the fiscal year ended March 31, 2026 was ¥4,496 million.

—99—

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##### [**Table of Contents**](#toc)
**[Information on amortization of goodwill and unamortized balance by reportable segment]** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31, 2025** | **Wholesale<br>Business<br>Unit** | **Retail<br>Business<br>Unit** | **Global**<br>**Business**<br>**Unit** | **Global Markets<br>Business<br>Unit** | **Head office<br>account and<br>others** | **Total** |
|  Amortization of goodwill | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9462 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13754 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9695 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32912 |
|  Unamortized balance |  | 20709 | 161611 |  | 47749 | 230070 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| <br>**Year ended March 31, 2026** | **Wholesale<br>Business<br>Unit** | **Retail<br>Business<br>Unit** | **Global**<br>**Business**<br>**Unit** | **Global Markets<br>Business<br>Unit** | **Head office<br>account and<br>others** | **Total** |
|  Amortization of goodwill | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3060 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13489 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9695 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26246 |
|  Unamortized balance |  | 61546 | 142787 |  | 38053 | 242387 |

---

**[Information on gains on negative goodwill by reportable segment]** 

***Fiscal year ended March 31, 2025***

There were no corresponding transactions.

***Fiscal year ended March 31, 2026***

There were no corresponding transactions.

**[Information on related parties]** 

***Fiscal year ended March 31, 2025***

There was no significant information to be disclosed.

***Fiscal year ended March 31, 2026***

There was no significant information to be disclosed.

—100—

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##### [**Table of Contents**](#toc)
**(Business combination)** 

There was no significant business combination to be disclosed.

**(Per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Yen** | **Yen** |
| **As of and year ended March 31** | **As of and year ended March 31** | **2025** | **2026** |
| Net assets per share | Net assets per share | ¥3795.62 | ¥4135.71 |
| Earnings per share | Earnings per share | 301.55 | 411.97 |
| Earnings per share (diluted) | Earnings per share (diluted) | 301.48 | 411.88 |
|  Notes: 1. On October 1, 2024, the Company executed a three-for-one split of its common stock, with a record date of September 30, 2024. "Net assets per share," "Earnings per share," and "Earnings per share (diluted)" were calculated based on the assumption that the stock split had been implemented at the beginning of the previous fiscal year. | Notes: 1. On October 1, 2024, the Company executed a three-for-one split of its common stock, with a record date of September 30, 2024. "Net assets per share," "Earnings per share," and "Earnings per share (diluted)" were calculated based on the assumption that the stock split had been implemented at the beginning of the previous fiscal year. | Notes: 1. On October 1, 2024, the Company executed a three-for-one split of its common stock, with a record date of September 30, 2024. "Net assets per share," "Earnings per share," and "Earnings per share (diluted)" were calculated based on the assumption that the stock split had been implemented at the beginning of the previous fiscal year. | Notes: 1. On October 1, 2024, the Company executed a three-for-one split of its common stock, with a record date of September 30, 2024. "Net assets per share," "Earnings per share," and "Earnings per share (diluted)" were calculated based on the assumption that the stock split had been implemented at the beginning of the previous fiscal year. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. | &nbsp;&nbsp;&nbsp;&nbsp; Earnings per share and earnings per share (diluted) are calculated based on the following. |  |  |
|  |  | **Millions of yen except number of shares** | **Millions of yen except number of shares** |
|  | **Year ended March 31** | **2025** | **2026** |
|  | Earnings per share: |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent | ¥1177996 | ¥1582973 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Amount not attributable to common stockholders |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Profit attributable to owners of parent attributable to common stock | ¥1177996 | ¥1582973 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Average number of common stock during the fiscal year (in thousands) | 3906456 | 3842443 |
|  | Earnings per share (diluted): |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Adjustment for profit attributable to owners of parent | ¥(7) | ¥(17) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustment of dilutive shares issued by consolidated subsidiaries and equity method affiliates | (7) | (17) |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Increase in number of common stock (in thousands) | 938 | 766 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock acquisition rights (in thousands) | 938 | 766 |
|  | Outline of dilutive shares which were not included in the calculation of "Earnings per share (diluted)" because they do not have dilutive effect: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. | &nbsp;&nbsp;&nbsp;&nbsp; Net assets per share are calculated based on the following: |  |  |
|  |  | **Millions of yen except number of shares** | **Millions of yen except number of shares** |
|  | **March 31** | **2025** | **2026** |
|  | Net assets | ¥14841509 | ¥15933144 |
|  | Amounts excluded from net assets | 138073 | 147687 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Stock acquisition rights | 767 | 594 |
|  | &nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests | 137306 | 147092 |
|  | Net assets attributable to common stock at the end of the fiscal year | ¥14703435 | ¥15785457 |
|  | Number of common stock at the end of the fiscal year used for the calculation of net assets per share (in thousands) | 3873793 | 3816866 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. | &nbsp;&nbsp;&nbsp;&nbsp; The Company has introduced a "Stock grant trust for employees" (the "Trust"). The shares of the Company held by the Trust are included in the number of treasury stock deducted in the calculation of "Net assets per share," "Earnings per share," and "Earnings per share (diluted)."<br> The number of such treasury stock deducted in the calculation of "Net assets per share" was 446,000 shares and 574,000 shares for the fiscal years ended March 31, 2025 and 2026, respectively. The average number of such treasury stock deducted in the calculation of "Earnings per share" and "Earnings per share (diluted)" was 409,000 shares and 569,000 shares for the fiscal years ended March 31, 2025 and 2026, respectively. | &nbsp;&nbsp;&nbsp;&nbsp; The Company has introduced a "Stock grant trust for employees" (the "Trust"). The shares of the Company held by the Trust are included in the number of treasury stock deducted in the calculation of "Net assets per share," "Earnings per share," and "Earnings per share (diluted)."<br> The number of such treasury stock deducted in the calculation of "Net assets per share" was 446,000 shares and 574,000 shares for the fiscal years ended March 31, 2025 and 2026, respectively. The average number of such treasury stock deducted in the calculation of "Earnings per share" and "Earnings per share (diluted)" was 409,000 shares and 569,000 shares for the fiscal years ended March 31, 2025 and 2026, respectively. | &nbsp;&nbsp;&nbsp;&nbsp; The Company has introduced a "Stock grant trust for employees" (the "Trust"). The shares of the Company held by the Trust are included in the number of treasury stock deducted in the calculation of "Net assets per share," "Earnings per share," and "Earnings per share (diluted)."<br> The number of such treasury stock deducted in the calculation of "Net assets per share" was 446,000 shares and 574,000 shares for the fiscal years ended March 31, 2025 and 2026, respectively. The average number of such treasury stock deducted in the calculation of "Earnings per share" and "Earnings per share (diluted)" was 409,000 shares and 569,000 shares for the fiscal years ended March 31, 2025 and 2026, respectively. |

---

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**(Significant subsequent events)** 

***Fiscal year ended March 31, 2026***

&nbsp;&nbsp;&nbsp;&nbsp;1. Stock split and partial amendments to the Articles of Incorporation to conduct the stock split

At a meeting of the Board of Directors held on May 13, 2026, the Company declared to implement a stock split and propose partial amendments to the Articles of Incorporation to conduct the stock split at the 24th Ordinary General Meeting of Shareholders scheduled for June 26, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Purpose of the stock split

By reducing the stock price per investment unit, the Company seeks to develop a more investor-friendly environment and expand the investor base.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Method of the stock split

Each share of common stock owned by shareholders listed or recorded in the final register of shareholders, with a record date of September 30, 2026, will be split into two shares.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Increase in the number of shares due to the stock split

1) Total number of issued shares before the stock split: 3,827,498,140 shares 

2) Number of shares to be increased by the stock split: 3,827,498,140 shares

3) Total number of issued shares following the stock split: 7,654,996,280 shares 

4) Total number of authorized shares following the stock split: 18,000,564,000 shares 

\* The numbers of shares in 1), 2) and 3) above are subject to change prior to the record date.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Schedule for the stock split

1) Public notice of record date (tentative): September 15, 2026

2) Record date: September 30, 2026

3) Effective date: October 1, 2026

&nbsp;&nbsp;&nbsp;&nbsp;(5) Partial amendments to the Articles of Incorporation to conduct the stock split

The Company proposes partial amendments to the Articles of Incorporation, effective on October 1, 2026, to increase the total number of issued shares and the total number of authorized shares for common stocks in accordance with the above split ratio of the common stocks.

---

| | |
|:---|:---|
| Existing Articles of Incorporation | Proposed Amendments |
| (Total Number of Authorized Shares)<br> Article 6. The total number of shares the Corporation is authorized to issue shall be nine billion five hundred sixty four thousand (9000564000) shares.<br>(Total Number of Authorized Shares of Each Particular Class of Shares)<br> Article 7. The total number of shares the Corporation is authorized to issue shall consist of nine billion (9000000000) common stocks, one hundred sixty seven thousand (167000) type 5 preferred stocks, one hundred sixty seven thousand (167000) type 7 preferred stocks, one hundred fifteen thousand (115000) type 8 preferred stocks and one hundred fifteen thousand (115000) type 9 preferred stocks. | (Total Number of Authorized Shares)<br> Article 6. The total number of shares the Corporation is authorized to issue shall be eighteen billion five hundred sixty four thousand (18000564000) shares.<br>(Total Number of Authorized Shares of Each Particular Class of Shares)<br> Article 7. The total number of shares the Corporation is authorized to issue shall consist of eighteen billion (18000000000) common stocks, one hundred sixty seven thousand (167000) type 5 preferred stocks, one hundred sixty seven thousand (167000) type 7 preferred stocks, one hundred fifteen thousand (115000) type 8 preferred stocks and one hundred fifteen thousand (115000) type 9 preferred stocks. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(6) Effect on per share data

Assuming that the Company conducts the stock split at the beginning of the fiscal year ended March 31, 2025, per share data are as follows:

---

| | | |
|:---|:---|:---|
| | **Yen** | **Yen** |
| <br>**As of and year ended March 31** | **2025** | **2026** |
| Net assets per share | ¥1897.81 | ¥2067.86 |
| Earnings per share | 150.78 | 205.99 |
| Earnings per share (diluted) | 150.74 | 205.94 |

---

—102—

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&nbsp;&nbsp;&nbsp;&nbsp;2. Repurchase and Cancellation of Own Share

At a meeting of the Board of Directors held on May 13, 2026, the Company declared to repurchase its own shares pursuant to Article 8 of its Articles of Incorporation and paragraph 1 of Article 459 of the Companies Act, and to cancel the repurchased shares pursuant to Article 178 of the Companies Act.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Reason for the Repurchase of Own Shares

The Company will conduct a flexible repurchase of its own shares in order to enhance shareholder returns and improve capital efficiency.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Outline of the Repurchase

1) Type of shares to be repurchased: Common stock

2) Aggregate number of shares to be repurchased: Up to 40,000,000 shares (Equivalent to 1.0% of the number of shares issued (excluding treasury stock)) 

3) Aggregate amount to be repurchased: Up to JPY 180,000,000,000 

4) Repurchase period: From May 14, 2026 to July 31, 2026

5) Repurchase method: Market purchases based on a discretionary dealing contract regarding the repurchase of its own shares

&nbsp;&nbsp;&nbsp;&nbsp;(3) Outline of the Cancellation

1) Type of shares to be cancelled: Common stock

2) Number of shares to be cancelled: All of the shares repurchased as stated in (2) above

3) Scheduled cancellation date: August 20, 2026

&nbsp;&nbsp;&nbsp;&nbsp;3. Acquisition of the Company's shares for Share-Based Compensation Plan for Employees

The Company has expanded the scope of subsidiary companies covered by the Share-Based Compensation Plan (the "Plan") for employees of Sumitomo Mitsui Banking Corporation, SMBC Nikko Securities Inc., Sumitomo Mitsui Card Company, Limited, and The Japan Research Institute, Limited, consolidated subsidiaries of the Company, to include SMBC Consumer Finance Co., Ltd.

At a meeting of the Board of Directors held on May 13, 2026, the Company declared on matters related to the acquisition of its own shares by the trustee of the Employee Stock Ownership Plan (the "ESOP") in connection with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Outline of the ESOP

1) Name: Stock grant trust for employees

2) Trustor: The Company

3) Trustee: Sumitomo Mitsui Trust Bank, Limited

4) Beneficiary: Employees who meet requirements as beneficiaries

5) Trust administrator: A third party that is independent of the Company and its officers will be appointed

6) Voting rights: The trustee shall exercise the voting rights during the trust period based on the trust administrator's instructions 

7) Trust type: Money trust other than a specified cash trust for separate investment

8) Date of trust contract: May 23, 2024

9) Date of additional cash contribution to the trust: May 21, 2026

10) Date to end trust: The end of May 2029 (tentative)

&nbsp;&nbsp;&nbsp;&nbsp;(2) Acquisition of the Company's shares by the trustee of the ESOP

1) Type of share to be acquired: Common stock

2) Cash entrusted for the acquisition of the shares: Up to JPY 6,564,000,000

3) Number of shares: Up to 1,094,000 shares

4) Method of the share acquisition: Acquisition from the stock market

5) Period of the share acquisition: From May 21, 2026 to May 29, 2026

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##### [**Table of Contents**](#toc)
**[Consolidated supplementary financial schedules]** 

**[Schedule of bonds]** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Millions of yen** | **Millions of yen** | **Percentages** | | |
| **Company** | <br>**Type of bonds** | <br>**Date of<br>issuance** | **At the beginning of<br>the fiscal year** | **At the end of<br>the fiscal year** | **Interest<br>rate<br>(Note 1)** |<br>**Collat-<br>eral** | <br>**Date of<br>maturity** |
| The Company | Straight bonds, payable<br>in U.S. dollars<br>(Notes 3 and 4) | Jul. 2016 ~<br>Feb. 2026 | 7,485,594<br> ($50,060,818 thousand)<br> [1,043,422] | 8,250,689<br> ($51,599,056 thousand)<br> [1,476,510] | 1.402 ~<br> 5.88 |  | Jul. 2026 ~<br>Jan. 2052 |
|  | Straight bonds, payable<br>in Euro<br>(Notes 3 and 4) | Jun. 2016 ~<br>Oct. 2025 | 836,880<br> (€5,164,336 thousand)<br> [—] | 1,237,980<br> (€6,748,692 thousand)<br> [274,826] | 0.303 ~<br> 4.492 |  | Jun. 2026 ~<br>Oct. 2035 |
|  | Straight bonds, payable<br>in Australian dollars<br>(Notes 3 and 4) | Sep. 2016 ~<br>Jul. 2018 | 54,702<br> (A$582,000 thousand)<br> [—] | 63,810<br> (A$582,000 thousand)<br> [10,415] | 3.4 ~<br> 4.13 |  | Sep. 2026 ~<br>Jul. 2028 |
|  | Straight bonds, payable<br>in Hong Kong dollars<br>(Note 3) | Apr. 26, 2018 | 5,766<br> (HK$300,000 thousand) | 6,120<br> (HK$300,000 thousand) | 3.54 |  | Apr. 26, 2028 |
|  | Straight bonds, payable<br>in Yen (Note 4) | Jan. 2023 ~<br>Aug. 2025 | 260,000<br> [69,500] | 240,401<br> [35,000] | 0.55 ~<br> 2.153 |  | Jun. 2026 ~<br>Aug. 2035 |
|  | Subordinated bonds,<br>payable in Yen<br>(Note 4) | May 2015 ~<br>Oct. 2025 | 494,608<br> [122,928] | 435,600<br> [115,875] | 0.469 ~<br> 2.345 |  | Jun. 2026 ~<br>Oct. 2035 |
|  | Subordinated bonds,<br>payable in Yen | Mar. 2023 ~<br>Oct. 2025 | 206811 | 317594 | 1.168 ~<br>1.813 |  | Mar. 2028 ~<br>Oct. 2030 |
|  | Perpetual subordinated<br>bonds, payable in Yen | Jan. 2017 ~<br>Dec. 2025 | 1481925 | 1835728 | 0.848 ~<br> 3.053 |  | Perpetual |
|  | Subordinated bonds,<br>payable in U.S. dollars<br>(Note 3) | Sep. 2019 ~<br> Mar. 2026 | 556,430<br> ($3,721,197 thousand) | 952,925<br> ($5,959,508 thousand) | 2.142 ~<br> 6.184 |  | Sep. 2029 ~<br> Jul. 2045 |
|  | Perpetual subordinated<br>bonds, payable in U.S. dollars<br>(Note 3) | Mar. 2024 ~<br> Feb. 2025 | 333,782<br> ($2,232,212 thousand) | 358,930<br> ($2,244,719 thousand) | 6.45 ~<br> 6.6 |  | Perpetual |
|  SMBC | Straight bonds, payable<br>in U.S. dollars<br>(Notes 3 and 4) | May 2014 ~<br>Mar. 2026 | 204,392<br> ($1,366,897 thousand)<br> [74,765] | 298,530<br> ($1,866,979 thousand)<br> [81,069] | 3.31 ~<br> 5.261 |  | Sep. 2026 ~<br>Mar. 2031 |
|  | Straight bonds, payable<br>in U.S. dollars<br>(Note 3) | May 28, 2015 | 97,942<br> ($655,000 thousand) | 104,734<br> ($655,000 thousand) | 4.3 |  | May 30,<br>2045 |
|  | Straight bonds, payable<br>in Australian dollars<br>(Notes 3 and 4) | Dec. 2022 ~<br>Aug. 2023 | 10,526<br> (A$111,990 thousand)<br> [—] | 12,279<br> (A$111,996 thousand)<br> [6,578] | 4.77 ~<br> 4.79 |  | Sep. 2026 ~<br>Dec. 2027 |
|  | Straight bonds, payable<br>in Hong Kong dollars<br>(Notes 3 and 4) | Feb 27, 2025 | 22,199<br> (HK$1,155,006 thousand)<br> [14,511] | 8,159<br> (HK$399,951 thousand)<br> [—] | 4.16 |  | Feb. 28, 2028 |
|  | Subordinated bonds,<br>payable in Yen | Jun. 2011 ~<br>Dec. 2011 | 59,998<br> [—] | 59,999<br> [60,000] | 2.17 ~<br> 2.21 |  | Jun. 2026 ~<br>Dec. 2026 |
|  (\*1) | Consolidated subsidiaries, straight bonds, payable in Yen<br>(Notes 2 and 4) | Jun. 2013 ~<br>Mar. 2026 | 356,058<br> [34,545] | 385,577<br> [57,708] | 0 ~<br> 15 |  | Apr. 2026 ~<br>Mar. 2056 |
|  (\*2) | Consolidated subsidiaries, straight bonds, payable in U.S. dollars<br>(Notes 2,3, and 4) | Dec. 2016 ~<br>Dec. 2025 | 46,640<br> ($311,914 thousand)<br> [10,330] | 43,583<br> ($272,564 thousand)<br> [21,022] | 0.01 ~<br> 4.56 |  | Jun. 2026 ~<br>May 2043 |
|  (\*3) | Consolidated subsidiaries, straight bonds, payable in Australian dollars<br>(Notes 2,3, and 4) | Mar. 2017 ~<br>Dec. 2018 | 225<br> (A$2,404 thousand)<br> [—] | 178<br> (A$1,631 thousand)<br> [10] | 0.01 ~<br> 0.75 |  | Mar. 2027 ~<br>Dec. 2028 |

---

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------

##### [**Table of Contents**](#toc)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Millions of yen** | **Millions of yen** | **Percentages** | | |
| **Company** | <br>**Type of bonds** | <br>**Date of<br>issuance** | **At the beginning of<br>the fiscal year** | **At the end of<br>the fiscal year** | **Interest<br>rate<br>(Note 1)** | <br>**Collat-<br>eral** | <br>**Date of<br>maturity** |
|  (\*4) | Consolidated subsidiaries, straight bonds, payable in Indonesia rupiah<br>(Notes 2,3, and 4) | Jul. 2023 ~<br>Sep. 2025 | 33,650<br> (IDR3,738,975,786 thousand)<br>[2,297] | 63,884<br> (IDR6,796,221,312 thousand)<br> [12,547] | 6.1 ~<br> 7.45 |  | Apr. 2026 ~<br>Sep. 2030 |
|  (\*5) | Consolidated subsidiaries, straight bonds, payable in Indian rupee <br>(Notes 2,3, and 4) | Jan. 2020 ~<br>Mar. 2026 | 191,325<br> (INR109,328,650 thousand)<br> [52,494] | 171,586<br> (INR101,530,369 thousand)<br> [50,953] | 7.14 ~<br> 8.73 | Existing | Apr. 2026 ~<br> Nov. 2035 |
|  (\*6) | Consolidated subsidiaries, <br>subordinated bonds, <br>payable in Indian rupee <br>(Notes 2,3, and 4) | May 2016 ~<br>Oct. 2025 | 25,626<br> (INR14,643,594 thousand)<br> [3,500] | 23,927<br> (INR14,158,086 thousand)<br> [354] | 7.6 ~<br> 9.45 |  | Apr. 2026 ~<br> Oct. 2035 |
|  (\*7) | Consolidated subsidiaries,<br>subordinated bonds,<br>payable in Yen<br>(Note 2) | Dec. 1997 ~<br>Feb. 1998 | 20000 | 20000 | 4 ~<br> 4.15 |  | Jan. 28, 2028 |
|  (\*8) | Consolidated subsidiaries, short-term bonds, payable in Yen <br>(Notes 2 and 4) | Oct. 2025 ~<br>Mar. 2026 | 728,200<br> [728,200] | 773,500<br> [773,500] | 0.6 ~<br> 1.11 |  | Apr. 2026 ~<br>Sep. 2026 |
|  (\*9) | Consolidated subsidiaries, straight bonds, payable in Euro <br>(Notes 2,3, and 4) | Jun. 2019 ~<br>Feb. 2026 | 567,304<br> (€3,500,798 thousand)<br> [283,587] | 476,944<br> (€2,600,000 thousand)<br> [91,720] | 0.267 ~<br> 2.875 | Existing | Jun. 2026 ~<br>Feb. 2031 |
|  Total | Total |  | ¥14080592 | ¥16142664 |  |  |  |

---

Notes: 1. "Interest rate" indicates a nominal interest rate which is applied at respective consolidated balance sheet dates. Therefore, this rate may differ from an actual interest rate.

2. (\*1) This represents straight bonds issued in Yen by SMBC Nikko, a domestic consolidated subsidiary.

(\*2) This represents straight bonds issued in U.S. dollar by SMBC Nikko, a domestic consolidated subsidiary.

(\*3) This represents straight bonds issued in Australian dollar by SMBC Nikko, a domestic consolidated subsidiary.

(\*4) This represents straight bonds issued in Indonesia rupiah by PT Bank SMBC Indonesia Tbk, an overseas consolidated subsidiary.

(\*5) This represents straight bonds issued in Indian rupee by SMFG India Credit Company Limited, an overseas consolidated subsidiary.

(\*6) This represents subordinate term bonds issued in Indian rupee by SMFG India Credit Company Limited, an overseas consolidated subsidiary.

(\*7) This represents subordinate term bonds issued in Yen by SMBC International Finance N.V., an overseas consolidated subsidiary.

(\*8) This represents an aggregate of short-term bonds issued in Yen by SMBC Nikko and SMCC, domestic consolidated subsidiaries.

(\*9) This represents straight bonds issued in Euro by the trust account in relation to covered bonds, a consolidated subsidiary of the Company.

3. Figures shown in () in "At the beginning of the fiscal year" and "At the end of the
fiscal year" are in foreign currency.

4. Figures shown in [ ] in "At the beginning of the fiscal year" and "At the end of the
fiscal year" are the amounts to be redeemed within one year.

5. The redemption schedule for the next 5 years after respective balance sheet dates of the consolidated
subsidiaries is as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Within 1 year** | **Within 1 year** | **More than 1 year<br>to 2 years** | **More than 1 year<br>to 2 years** | **More than 2 years<br>to 3 years** | **More than 2 years<br>to 3 years** | **More than 3 years<br>to 4 years** | **More than 3 years<br>to 4 years** | **More than 4 years<br>to 5 years** | **More than 4 years<br>to 5 years** |
| ¥ | 3068092 | ¥ | 1379259 | ¥ | 1403336 | ¥ | 1766084 | ¥ | 2014817 |

---

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##### [**Table of Contents**](#toc)
**[Schedule of borrowings]** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Percentages** | |
| <br>**Classification** | **At the beginning of**<br> **the fiscal year** | **At the end of<br> the fiscal year** | **Average<br> interest rate**  | <br> **Repayment Term** |
|  Borrowed money | ¥11355209 | ¥9370996 | 1.46 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other borrowings | 11355209 | 9370996 | 1.46 | Apr. 2026 ~ Perpetual |
|  Lease obligations | 32207 | 33347 | 3.75 | Apr. 2026 ~ Oct. 2038 |

---

---

| | | |
|:---|:---|:---|
|  Notes: | 1. | "Average interest rate" represents the weighted average interest rate based on the interest rates and "At the end of the fiscal year" at respective balance sheet dates of consolidated subsidiaries. |
|  | 2. | The redemption schedule for the next 5 years of Other Borrowings and Lease obligations after respective balance sheet dates of the consolidated subsidiaries is as follows: |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
|  | **Within 1 year** | **More than 1<br> year to 2 years** | **More than 2<br> years to 3 years** | **More than 3<br> years to 4 years** | **More than 4**<br> **years to 5 years** |
|  Other borrowings | ¥4540956 | ¥2914970 | ¥473201 | ¥233971 | ¥344136 |
|  Lease obligations | 10417 | 8222 | 6339 | 3709 | 1948 |

---

Since the commercial banking business accepts deposits and raises and manages funds through the call loan and commercial paper markets as a normal course of business, the schedule of borrowings shows a breakdown of "Borrowed money" included in the "Liabilities" and Lease obligations included in "Other liabilities" in the consolidated balance sheet.

Reference: Commercial paper issued for funding purposes as a normal course of business is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Percentage** | |
|  | **At the beginning of<br> the fiscal year** | **At the beginning of<br> the fiscal year** | **At the end of<br> the fiscal year** | **At the end of<br> the fiscal year** | **Average<br> interest rate**  | <br> **Repayment Term** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial paper | ¥ | 2686483 | ¥ | 3380389 | 3.50 | Apr. 2026 ~ Jan. 2027 |

---

**[Schedule of asset retirement obligations]** 

Since the amount of asset retirement obligations accounts for 1% or less of the total of liabilities and net assets, the schedule of asset retirement obligations is not disclosed.

**[Others]** 

Consolidated financial information for the six months ended September 30, 2025 and the fiscal year ended March 31, 2026 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Millions of yen (except earnings per share)** | **Millions of yen (except earnings per share)** |
|  | **Six months ended<br> September 30, 2025** | **Fiscal year ended <br>March 31, 2026** |
|  Ordinary income | ¥5205887 | ¥10790853 |
|  Income before income taxes | 1275474 | 2251725 |
|  Profit attributable to owners of parent | 933505 | 1582973 |
|  Earnings per share | 242.03 | 411.97 |

---

—106—

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##### [**Table of Contents**](#toc)
**(Non-consolidated financial statements)** 

**1. Non-consolidated balance sheets** 

---

| | | | |
|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of U.S. dollars** |
| <br>**March 31** | **2025** | **2026** | **2026** |
|  **Assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Current assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and due from banks | ¥530273 | ¥551330 | $3448 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 2081 | 1928 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income | 92097 | 124338 | 778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued income tax refunds | 15515 | 17448 | 109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term loans receivables from subsidiaries and affiliates | 1176962 | 1920146 | 12008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current assets | 10774 | 17088 | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 1827704 | 2632281 | 16462 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Fixed assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tangible fixed assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Buildings | 36025 | 35680 | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land | 31454 | 31454 | 197 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equipment | 342 | 737 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Construction in progress |  | 65 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total tangible fixed assets | 67822 | 67938 | 425 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible fixed assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Software | 16162 | 17195 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible fixed assets | 16162 | 17195 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments and other assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment securities | 107820 | 156541 | 979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in subsidiaries and affiliates | 7088989 | 7089375 | 44336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term loans receivable from subsidiaries and affiliates | 11239540 | 12609927 | 78861 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term prepaid expenses | 678 | 273 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments and other assets | 2682 | 3268 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investments and other assets | 18439711 | 19859385 | 124199 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total fixed assets | 18523696 | 19944520 | 124731 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | ¥&nbsp;&nbsp;&nbsp;&nbsp;20351401 | ¥&nbsp;&nbsp;&nbsp;&nbsp;22576801 | $&nbsp;&nbsp;&nbsp;&nbsp;141193 |
|  **Liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | ¥1679650 | ¥1675000 | $10475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 1263 | 1468 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 92196 | 124876 | 781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable | 16 | 1486 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Business office taxes payable | 54 | 67 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserve for employee bonuses | 1246 | 1739 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserve for executive bonuses | 624 | 742 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of bonds | 1238587 | 1915650 | 11980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of long-term borrowings | 8000 | 39495 | 247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 6015 | 2631 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 3027653 | 3763159 | 23534 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Fixed liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bonds | 10505406 | 11821814 | 73933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Long-term borrowings | 425100 | 444047 | 2777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities | 7246 | 22399 | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other fixed liabilities | 1085 | 4090 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total fixed liabilities | 10938839 | 12292353 | 76875 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | 13966493 | 16055512 | 100410 |
|  **Net assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; **Stockholders' equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital stock | 2345960 | 2346888 | 14677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital surplus |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital reserve | 1567436 | 1568364 | 9808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capital surplus | 1567436 | 1568364 | 9808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other retained earnings |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Voluntary reserve | 30420 | 30420 | 190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings brought forward | 2459812 | 2573387 | 16094 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total retained earnings | 2490232 | 2603807 | 16284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock | (38512) | (48851) | (306) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 6365117 | 6470208 | 40464 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Valuation and translation adjustments** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gains (losses) on other securities | 19022 | 50485 | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total valuation and translation adjustments | 19022 | 50485 | 316 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Stock acquisition rights** | 767 | 594 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Total net assets** | 6384907 | 6521288 | 40784 |
|  **Total liabilities and net assets** | ¥20351401 | ¥22576801 | $141193 |

---

—107—

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##### [**Table of Contents**](#toc)
**2. Non-consolidated statements of income** 

---

| | | | |
|:---|:---|:---|:---|
| **Year ended March 31** | **Millions of yen** | **Millions of yen** | **Millions of U.S. dollars** |
| **Year ended March 31** | **2025** | **2026** | **2026** |
|  **Operating income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends on investments in subsidiaries and affiliates | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1019049 | ¥943921 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5903 |
| &nbsp;&nbsp;&nbsp;&nbsp; Fees and commissions received from subsidiaries | 21729 | 23661 | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interests on loans receivable from subsidiaries and affiliates | 390635 | 462943 | 2895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total operating income | 1431414 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1430526 | 8946 |
|  **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | 59982 | 67904 | 425 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest on bonds | 365327 | 436686 | 2731 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest on long-term borrowings | 19977 | 19118 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 445287 | 523708 | 3275 |
|  **Operating profit** | 986127 | 906817 | 5671 |
|  **Non-operating income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest income on deposits | 928 | 1946 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends income | 4320 | 5400 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp; Fees and commissions income | 2 | 0 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gains on reversal of reserve for possible losses on investments |  | 1053 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp; Gains on redemption of bonds | 5478 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other non-operating income | 230 | 294 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total non-operating income | 10959 | 8695 | 54 |
|  **Non-operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest on short-term borrowings | 11995 | 19494 | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp; Fees and commissions payments | 893 | 458 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Amortization of bond issuance cost | 10064 | 12540 | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp; Losses on redemption of loans receivable | 5478 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other non-operating expenses | 3252 | 478 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total non-operating expenses | 31684 | 32971 | 206 |
|  **Ordinary profit** | 965402 | 882542 | 5519 |
|  **Extraordinary gains:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on sale of stocks of subsidiaries and affiliates | 525 | 52 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total extraordinary gains | 525 | 52 | 0 |
|  **Extraordinary losses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Losses on disposal of fixed assets | 59 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Losses on valuation of stocks of subsidiaries and affiliates | 10151 | 2873 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total extraordinary losses | 10211 | 2873 | 18 |
|  **Income before income taxes** | 955716 | 879721 | 5502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income taxes-current | (14094) | (14482) | (91) |
| &nbsp;&nbsp;&nbsp;&nbsp; Income taxes-deferred | (507) | 310 | 2 |
|  Income taxes | (14602) | (14171) | (89) |
|  **Net income** | ¥970319 | ¥893893 | $5590 |
|  | **Yen** | **Yen** | **U.S. dollars** |
|  | **2025** | **2026** | **2026** |
|  **Per share data:** |  |  |  |
|  Earnings per share | ¥248.39 | ¥232.64 | $1.45 |
|  Earnings per share (diluted) | 248.33 | 232.59 | 1.45 |

---

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##### [**Table of Contents**](#toc)
**3. Non-consolidated statements of changes in net assets** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2025** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** |
| **Year ended March 31, 2025** | | **Capital surplus** | **Capital surplus** | **Capital surplus** |
| **Year ended March 31, 2025** |<br>**Capital<br>stock** | **Capital<br>reserve** | **Other capital<br>surplus** | **Total capital<br>surplus** |
|  Balance at the beginning of the fiscal year | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2344038 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1565514 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1565514 |
|  Changes in the fiscal year: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock | 1922 | 1922 |  | 1922 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  | (430) | (430) |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  | (380176) | (380176) |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  | 380607 | 380607 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than <br>stockholders' equity in the fiscal year |  |  |  |  |
|  Net changes in the fiscal year | 1922 | 1922 |  | 1922 |
|  Balance at the end of the fiscal year | ¥2345960 | ¥1567436 | ¥— | ¥1567436 |
| **Year ended March 31, 2025**  | **Millions of yen** | **Millions of yen** | **Millions of yen** |  |
| **Year ended March 31, 2025**  | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** |  |
| **Year ended March 31, 2025**  | **Retained earnings** | **Retained earnings** | **Retained earnings** |  |
| **Year ended March 31, 2025**  | **Other retained earnings** | **Other retained earnings** |  |  |
| **Year ended March 31, 2025**  | **Voluntary<br>reserve** | **Retained earnings<br>brought forward** | **Total retained<br>earnings** |  |
|  Balance at the beginning of the fiscal year | ¥30420 | ¥2282340 | ¥2312760 |  |
|  Changes in the fiscal year: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  | (412240) | (412240) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  | 970319 | 970319 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  | (380607) | (380607) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than <br>stockholders' equity in the fiscal year |  |  |  |  |
|  Net changes in the fiscal year |  | 177471 | 177471 |  |
|  Balance at the end of the fiscal year | ¥30420 | ¥2459812 | ¥2490232 |  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2025**  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2025**  | **Stockholders' equity** | **Stockholders' equity** | **Valuation<br>and translation<br>adjustments** | **Stock<br>acquisition<br>rights** | |
| **Year ended March 31, 2025**  | **Treasury<br>stock** | **Total** | **Net unrealized<br>gains (losses) on<br>other securities** | **Stock<br>acquisition<br>rights** |<br>**Total<br>net assets** |
|  Balance at the beginning of the fiscal year | ¥(167671) | ¥6054642 | ¥19758 | ¥931 | ¥6075333 |
|  Changes in the fiscal year: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  | 3844 |  |  | 3844 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  | (412240) |  |  | (412240) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  | 970319 |  |  | 970319 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock | (251629) | (251629) |  |  | (251629) |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;612 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;181 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;181 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock | 380176 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than <br>stockholders' equity in the fiscal year |  |  | (736) | (164) | (900) |
|  Net changes in the fiscal year | 129159 | 310475 | (736) | (164) | 309574 |
|  Balance at the end of the fiscal year | ¥(38512) | ¥6365117 | ¥19022 | ¥767 | ¥6384907 |

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##### [**Table of Contents**](#toc)

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** |
| | | **Capital surplus** | **Capital surplus** | **Capital surplus** |
| <br>**Year ended March 31, 2026** |<br>**Capital<br>stock** | **Capital<br>reserve** | **Other capital<br>surplus** | **Total capital<br>surplus** |
|  Balance at the beginning of the fiscal year | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2345960 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1567436 | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | ¥&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1567436 |
|  Changes in the fiscal year: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock | 927 | 927 |  | 927 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  | (499) | (499) |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  | (239526) | (239526) |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  | 240025 | 240025 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  |  |  |
|  Net changes in the fiscal year | 927 | 927 |  | 927 |
|  Balance at the end of the fiscal year | ¥2346888 | ¥1568364 | ¥— | ¥1568364 |
| **Year ended March 31, 2026**  | **Millions of yen** | **Millions of yen** | **Millions of yen** |  |
| **Year ended March 31, 2026**  | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** |  |
| **Year ended March 31, 2026**  | **Retained earnings** | **Retained earnings** | **Retained earnings** |  |
| **Year ended March 31, 2026**  | **Other retained earnings** | **Other retained earnings** |  |  |
| **Year ended March 31, 2026**  | **Voluntary<br>reserve** | **Retained earnings<br>brought forward** | **Total retained<br>earnings** |  |
|  Balance at the beginning of the fiscal year | ¥30420 | ¥2459812 | ¥2490232 |  |
|  Changes in the fiscal year: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  | (540292) | (540292) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  | 893893 | 893893 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  | (240025) | (240025) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  |  |  |
|  Net changes in the fiscal year |  | 113575 | 113575 |  |
|  Balance at the end of the fiscal year | ¥30420 | ¥2573387 | ¥2603807 |  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2026**  | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** | **Millions of yen** |
| **Year ended March 31, 2026**  | **Stockholders' equity** | **Stockholders' equity** | **Valuation<br>and translation<br>adjustments** | **Stock<br>acquisition<br>rights** | |
| **Year ended March 31, 2026**  | **Treasury**<br>**stock** | **Total** | **Net unrealized<br>gains (losses) on<br>other securities** | **Stock<br>acquisition<br>rights** |<br>**Total<br>net assets** |
|  Balance at the beginning of the fiscal year | ¥(38512) | ¥6365117 | ¥19022 | ¥767 | ¥6384907 |
|  Changes in the fiscal year: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  | 1855 |  |  | 1855 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  | (540292) |  |  | (540292) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  | 893893 |  |  | 893893 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock | (250624) | (250624) |  |  | (250624) |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;759 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260 |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;260 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock | 239526 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  | 31462 | (173) | 31289 |
|  Net changes in the fiscal year | (10339) | 105091 | 31462 | (173) | 136380 |
|  Balance at the end of the fiscal year | ¥(48851) | ¥6470208 | ¥50485 | ¥594 | ¥6521288 |

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##### [**Table of Contents**](#toc)

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| | | | | |
|:---|:---|:---|:---|:---|
| **Year ended March 31, 2026** | **Millions of U. S. dollars** | **Millions of U. S. dollars** | **Millions of U. S. dollars** | **Millions of U. S. dollars** |
| **Year ended March 31, 2026** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** |
| **Year ended March 31, 2026** | | **Capital surplus** | **Capital surplus** | **Capital surplus** |
| **Year ended March 31, 2026** |<br>**Capital<br>stock** | **Capital<br>reserve** | **Other capital<br>surplus** | **Total capital<br>surplus** |
|  Balance at the beginning of the fiscal year | $14671 | $9803 | $— | $9803 |
|  Changes in the fiscal year: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock | 6 | 6 |  | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  | (3) | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  | (1498) | (1498) |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  | 1501 | 1501 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  |  |  |
|  Net changes in the fiscal year | 6 | 6 |  | 6 |
|  Balance at the end of the fiscal year | $14677 | $9808 | $— | $9808 |
| **Year ended March 31, 2026**  | **Millions of U. S. dollars** | **Millions of U. S. dollars** | **Millions of U. S. dollars** |  |
| **Year ended March 31, 2026**  | **Stockholders' equity** | **Stockholders' equity** | **Stockholders' equity** |  |
| **Year ended March 31, 2026**  | **Retained earnings** | **Retained earnings** | **Retained earnings** |  |
| **Year ended March 31, 2026**  | **Other retained earnings** | **Other retained earnings** |  |  |
| **Year ended March 31, 2026**  | **Voluntary<br>reserve** | **Retained earnings<br>brought forward** | **Total retained<br>earnings** |  |
|  Balance at the beginning of the fiscal year | $190 | $15383 | $15574 |  |
|  Changes in the fiscal year: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  | (3379) | (3379) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  | 5590 | 5590 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  | (1501) | (1501) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  |  |  |
|  Net changes in the fiscal year |  | 710 | 710 |  |
|  Balance at the end of the fiscal year | $190 | $16094 | $16284 |  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year ended March 31, 2026**  | **Millions of U. S. dollars** | **Millions of U. S. dollars** | **Millions of U. S. dollars** | **Millions of U. S. dollars** | **Millions of U. S. dollars** |
| **Year ended March 31, 2026**  | **Stockholders' equity** | **Stockholders' equity** | **Valuation<br>and translation<br>adjustments** | **Stock<br>acquisition<br>rights** | |
| **Year ended March 31, 2026**  | **Treasury<br>stock** | **Total** | **Net unrealized<br>gains (losses) on<br>other securities** | **Stock<br>acquisition<br>rights** |<br>**Total<br>net assets** |
|  Balance at the beginning of the fiscal year | $(241) | $39807 | $119 | $5 | $39931 |
|  Changes in the fiscal year: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of new stock |  | 12 |  |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash dividends |  | (3379) |  |  | (3379) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income |  | 5590 |  |  | 5590 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock | (1567) | (1567) |  |  | (1567) |
| &nbsp;&nbsp;&nbsp;&nbsp; Disposal of treasury stock | 5 | 2 |  |  | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cancellation of treasury stock | 1498 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer from retained earnings to capital surplus |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net changes in items other than stockholders' equity in the fiscal year |  |  | 197 | (1) | 196 |
|  Net changes in the fiscal year | (65) | 657 | 197 | (1) | 853 |
|  Balance at the end of the fiscal year | $(306) | $40464 | $316 | $4 | $40784 |

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**<u>Independent Auditor's Report</u>**

To the Board of Directors of

Sumitomo Mitsui Financial Group, Inc.:

**Report on the Audit of the Consolidated Financial Statements** 

**Opinion** 

We have audited the accompanying consolidated financial statements of Sumitomo Mitsui Financial Group, Inc. ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group"), which comprise the consolidated balance sheets as at March 31, 2026 and 2025, the consolidated statements of income, comprehensive income, changes in net assets and cash flows for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2026 and 2025, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with accounting principles generally accepted in Japan.

**Basis for Opinion** 

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the *Auditor's Responsibilities for the Audit of the Consolidated Financial Statements* section of our report. We are independent of the Group in accordance with the ethical requirements in Japan (including those that are relevant to our audit of the consolidated financial statements of public interest entities), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

**Key Audit Matters** 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. The reasonableness of management's assessment of the reserve for possible loan losses for SMBC's
corporate loans

**<u>The key audit matter</u>** 

In the consolidated balance sheet of Sumitomo Mitsui Financial Group, Inc. and its consolidated subsidiaries (collectively referred to as the "Group") as of March 31, 2026, the reserve for possible loan losses (the "Reserve") was ¥619,596 million on loans and bills discounted (the "Loans") of ¥117,629,215 million (or approximately 35.8% of total assets). Included in such balances were mainly corporate loans and the related reserve of Sumitomo Mitsui Banking Corporation ("SMBC"), a commercial banking subsidiary.

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As discussed in the "Notes (Significant accounting policies for preparing consolidated financial statements), 4. Accounting policy, (5) Reserve for possible loan losses" to the consolidated financial statements, SMBC assesses all claims including the Loans in accordance with the internal criteria for self-assessment of asset quality, and classifies borrowers into credit categories through examining individual credit risk profiles. On the basis of each borrower category, reserves and/or write-offs are recorded based on the methods including one that uses the historical loan-loss ratios or the probability of default to estimate possible loan losses and a discounted cash flow (DCF) method, in accordance with its internal policy for write-offs and provisions. For claims originated in specific overseas countries, an additional specific overseas reserve is recorded in the amount deemed necessary based on the assessment of political and economic conditions. Additionally, considering the recent economic environment and risk factors related to 1. The impact of the deteriorating situation in the Middle East and 2. The impact of inflation and other factors overseas, among others, as discussed in the "Notes (Additional information)," a potential loss amount that was deemed necessary in specific portfolios, among others, was recorded in the Reserve at the end of the current fiscal year based on an overall assessment of a probable future outlook for those portfolios that has not been fully captured in the historical data or individual borrower classification.

Specifically, as discussed in the "Notes (Additional information, 1. The estimates of the reserve for possible loan losses related to the impact of the deteriorating situation in the Middle East)" to the consolidated financial statements, a reserve of ¥29,500 million was recorded for possible loan losses for portfolios in light of concerns that the creditworthiness of companies considered vulnerable to these impacts may deteriorate amid surging global resource and energy prices and disruptions to shipments of crude oil and other commodities from the Middle East. In addition, as discussed in the "Notes (Additional information, 2. The estimates of the reserve for possible loan losses related to the impact of inflation and other factors overseas)" to the consolidated financial statements, a reserve of ¥60,000 million was recorded for possible loan losses for portfolios in light of concerns that heightened uncertainty in the business environment including inflation against the backdrop of U.S. tariff measures imposed on certain countries and the resulting impact on supply chains may increase corporate cost burdens and adversely affect companies' cash flows.

As discussed in the "Notes (Significant Accounting Estimates)" and the "Notes (Additional information)" to the consolidated financial statements, the assessment of the Reserve for SMBC's corporate loans involved significant estimation uncertainty, and required significant management judgment primarily in the following aspects:

• classifying borrowers into appropriate credit categories through performing a qualitative assessment;

• determining whether additional reserves for specific portfolios are deemed necessary, and selecting
appropriate methodologies to estimate such additional reserves based on the future outlook in light of the recent economic environment and risk factors; and

• projecting future cash flow scenarios, as an input to the DCF method, for borrowers with large claims
classified mainly as substandard or lower-level classifications.

In the judgment and estimation of these elements during the current fiscal year, the impact of surging global resource and energy prices and disruptions to shipments of crude oil and other commodities from the Middle East arising from factors such as the effective closure of the Strait of Hormuz due to the conflict involving the United States, Israel and Iran, and the impact of inflation against the backdrop of U.S. tariff measures imposed on certain countries and the resulting impact on supply chains required consideration.

We, therefore, determined that management's assessment of the Reserve for SMBC's corporate loans, specifically, classifying borrowers into credit categories through a qualitative assessment, determining whether additional reserves for specific portfolios are deemed necessary based on the future outlook in light of the recent economic environment and risk factors as well as determining appropriate methodologies to estimate such additional reserves, and projecting cash flow scenarios used in the DCF method, was of most significance in our audit of the consolidated financial statements for the current fiscal year, and accordingly, a key audit matter.

**<u>How the matter was addressed in our audit</u>** 

The primary procedures we performed to assess the reasonableness of management's assessment of the Reserve for SMBC's corporate loans included the following:

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**(1)** **Internal control testing** 

We evaluated the design and tested the operating effectiveness of certain of SMBC's internal controls over its process to assess the Reserve for SMBC's corporate loans. In this assessment, we focused on the controls that related to the:

• classification of individual borrowers into credit categories through a qualitative assessment;

• determination of additional reserves for specific portfolios based on the future outlook in light of the
recent economic environment and risk factors; and

• projection of future cash flow scenarios used in the DCF method.

**(2)** **Evaluation of borrower classification taking into account qualitative factors** 

For SMBC's corporate borrowers that we selected based on certain criteria, we involved credit risk specialists with industry-specific knowledge and expertise who assisted us in evaluating the appropriateness of borrower classification taking into account qualitative factors through:

• analyzing the borrowers' current business performance;

• assessing the customers' current financial position based on the specific circumstances; and

• assessing the appropriateness of the borrowers' business plans used as a basis for management's
borrower classification.

**(3)** **Evaluation of the reasonableness of additional reserves for specific portfolios based on the future outlook in light of the recent economic environment and risk factors** 

Given the impact of surging global resource and energy prices and disruptions to shipments of crude oil and other commodities from the Middle East arising from factors such as the de facto closure of the Strait of Hormuz due to the conflict involving the United States, Israel and Iran, and the impact of inflation against the backdrop of U.S. tariff measures imposed on certain countries and the resulting impact on supply chains, we evaluated the reasonableness of additional reserves for specific portfolios through:

• assessing the appropriateness of the selection of portfolios subject to additional reserves that were
considered susceptible to the aforementioned impacts;

• assessing the consistency of assumptions used in estimating additional reserves, especially the assumptions
about the potential future deterioration in the credit status of companies that were considered susceptible to the aforementioned impacts with available external data;

• assessing the appropriateness of the selection of portfolios subject to additional reserves, considering the
respective industry environment by using the relevant indices and other information published by external agencies; and

• involving credit risk specialists with industry-specific knowledge and expertise who assisted us in evaluating
the appropriateness of the methodologies used to estimate additional reserves considering the nature of and risk factors identified in each portfolio as well as the result of a retrospective review.

**(4)** **Evaluation of future cash flow scenarios used in the DCF method** 

For borrowers that we selected based on certain criteria among those for which the reserves were calculated using the DCF method, we evaluated the appropriateness of the borrowers' future cash flow scenarios through:

• assessing the feasibility of the restructuring plans considering the recent economic environment and the
prospect of future economic conditions;

• assessing the borrowers' current progress against the restructuring plans; and

• assessing the borrower's ability to repay considering the schedule and underlying sources of repayments
based on the restructuring plans.

**Other Information** 

The other information comprises the information included in the disclosure documents that contain or accompany the audited financial statements, but does not include the financial statements and our auditor's report thereon.

We do not perform any work on the other information as we determine such information does not exist.

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**Responsibilities of Management and the Audit Committee for the Consolidated Financial Statements** 

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally accepted in Japan.

The Audit Committee is responsible for overseeing the corporate executive officers and the directors' performance of their duties with regard to the design, implementation and maintenance of the Group's financial reporting process.

**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements** 

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in Japan will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basis of accounting and based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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• Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance
with accounting standards generally accepted in Japan, the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business activities within the Group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for the purpose of the
group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

**Fee-related Information** 

Fees paid or payable to our firm and to other firms within the same network as our firm for audit and non-audit services provided to the Company and its subsidiaries for the current year are 7,883 million yen and 681 million yen, respectively.

**Convenience Translation** 

The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2026 are presented solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in basis of presentation in the notes to the consolidated financial statements.

**Interest required to be disclosed by the Certified Public Accountants Act of Japan** 

We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

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/S/ Takashi Kondo

Designated Engagement Partner

Certified Public Accountant

/S/ Toshihiro Ozawa

Designated Engagement Partner

Certified Public Accountant

/S/ Bumbee Nishi

Designated Engagement Partner

Certified Public Accountant

KPMG AZSA LLC

Tokyo Office, Japan

June 18, 2026

**<u>Notes to the Reader of Independent Auditor's Report</u>:** 

This is a copy of the Independent Auditor's Report and the original copies are kept separately by the Company and KPMG AZSA LLC.