6-K 1 d149132d6k.htm FORM 6-K FORM 6-K
Table of Contents

 

 

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 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the month of August 2021

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    ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):      ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):      ☐

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.      Yes    ☐      No    ☒

 

*

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                

THIS REPORT ON 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NO. 333-228913) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 

 

 


Table of Contents


Table of Contents

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.
By:  

/s/ Toru Nakashima

  Name:     Toru Nakashima
  Title:       Senior Managing Executive Officer
                Group Chief Financial Officer

Date: August 19, 2021

 


Table of Contents

UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS

AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2021

On August 13, 2021, we published our unaudited quarterly consolidated financial statements as of and for the three months ended June 30, 2021 prepared in accordance with accounting principles generally accepted in Japan, or Japanese GAAP, as part of our quarterly securities report (shihanki hokokusho) for the same period filed by us with the relevant Japanese authorities. This document is an English translation of the unaudited quarterly consolidated financial statements and the notes thereto included in such quarterly securities report. Japanese GAAP differs in certain respects from International Financial Reporting 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

UNAUDITED QUARTERLY

CONSOLIDATED FINANCIAL STATEMENTS (JAPANESE GAAP)

QUARTERLY CONSOLIDATED BALANCE SHEETS

 

   

Millions of yen

     Millions of
U.S. dollars
 
 

    March 31, 2021    

   

June 30, 2021

         June 30, 2021      

Assets:

            

Cash and due from banks

     ¥ 72,568,875         ¥ 72,681,889       $ 657,101   

Call loans and bills bought

       2,553,463           2,841,603         25,690   

Receivables under resale agreements

       5,565,119           4,936,834         44,633   

Receivables under securities borrowing transactions

       5,827,448           4,937,235         44,636   

Monetary claims bought

       4,665,244           4,848,405         43,833   

Trading assets

       6,609,195           6,082,985         54,995   

Money held in trust

       309           309          

Securities

  *2      36,549,043      *2      35,919,669         324,742   

Loans and bills discounted

  *1      85,132,738      *1      84,236,322         761,562   

Foreign exchanges

       2,173,189           2,575,817         23,287   

Lease receivables and investment assets

       236,392           232,420         2,101   

Other assets

       8,590,785           8,621,178         77,942   

Tangible fixed assets

       1,458,991           1,483,830         13,415   

Intangible fixed assets

       738,759           740,332         6,693   

Net defined benefit asset

       565,534           575,970         5,207   

Deferred tax assets

       29,840           32,027         290   

Customers’ liabilities for acceptances and guarantees

       9,978,396           10,005,586         90,458   

Reserve for possible loan losses

       (659,017)          (632,412)        (5,717)  
    

 

 

      

 

 

    

 

 

 

Total assets

     ¥       242,584,308         ¥       240,120,007       $             2,170,871   
    

 

 

      

 

 

    

 

 

 

 

—1—


Table of Contents

QUARTERLY CONSOLIDATED BALANCE SHEETS

 

   

Millions of yen

     Millions of
U.S. dollars
 
 

    March 31, 2021    

   

June 30, 2021

         June 30, 2021      

Liabilities and net assets:

            

Liabilities:

            

Deposits

     ¥ 142,026,156         ¥ 141,732,369       $ 1,281,370   

Negotiable certificates of deposit

       12,570,617           12,376,310         111,891   

Call money and bills sold

       1,368,515           1,611,268         14,567   

Payables under repurchase agreements

       15,921,103           15,018,033         135,775   

Payables under securities lending transactions

       2,421,353           1,265,515         11,441   

Commercial paper

       1,686,404           2,367,935         21,408   

Trading liabilities

       5,357,649           4,092,409         36,999   

Borrowed money

       17,679,690           17,932,656         162,125   

Foreign exchanges

       1,113,037           1,316,671         11,904   

Short-term bonds

       585,000           415,000         3,752   

Bonds

       9,043,031           9,045,849         81,781   

Due to trust account

       2,321,223           2,280,709         20,619   

Other liabilities

       7,741,638           7,829,210         70,782   

Reserve for employee bonuses

       89,522           33,985         307   

Reserve for executive bonuses

       4,408           —         —   

Net defined benefit liability

       35,334           35,051         317   

Reserve for executive retirement benefits

       1,081           883          

Reserve for point service program

       24,655           24,799         224   

Reserve for reimbursement of deposits

       9,982           8,794         80   

Reserve for losses on interest repayment

       140,758           130,929         1,184   

Reserves under the special laws

       3,902           3,929         36   

Deferred tax liabilities

       532,193           542,888         4,908   

Deferred tax liabilities for land revaluation

       29,603           29,521         267   

Acceptances and guarantees

       9,978,396           10,005,586         90,458   
    

 

 

      

 

 

    

 

 

 

Total liabilities

       230,685,262           228,100,308         2,062,203   
    

 

 

      

 

 

    

 

 

 

Net assets:

            

Capital stock

       2,341,274           2,341,274         21,167   

Capital surplus

       693,205           693,061         6,266   

Retained earnings

       6,492,586           6,557,286         59,283   

Treasury stock

       (13,698)          (13,441)        (122)  
    

 

 

      

 

 

    

 

 

 

Total stockholders’ equity

       9,513,367           9,578,181         86,594   
    

 

 

      

 

 

    

 

 

 

Net unrealized gains (losses) on other securities

       2,094,605           2,106,545         19,045   

Net deferred gains (losses) on hedges

       14,723           13,239         120   

Land revaluation excess

       36,251           36,064         326   

Foreign currency translation adjustments

       40,390           89,156         806   

Accumulated remeasurements of defined benefit plans

       127,080           122,799         1,110   
    

 

 

      

 

 

    

 

 

 

Total accumulated other comprehensive income

       2,313,051           2,367,804         21,407   
    

 

 

      

 

 

    

 

 

 

Stock acquisition rights

       1,791           1,557         14   

Non-controlling interests

       70,836           72,155         652   
    

 

 

      

 

 

    

 

 

 

Total net assets

       11,899,046           12,019,698         108,667   
    

 

 

      

 

 

    

 

 

 

Total liabilities and net assets

     ¥       242,584,308         ¥       240,120,007       $             2,170,871   
    

 

 

      

 

 

    

 

 

 
    

 

 

      

 

 

    

 

 

 

 

—2—


Table of Contents

QUARTERLY CONSOLIDATED STATEMENTS OF INCOME

 

    Millions of yen     Millions of
    U.S. dollars    
 

Three months ended June 30

  2020     2021     2021  

Ordinary income

      ¥ 970,393          ¥    951,725      $ 8,604   

Interest income

        499,178            442,051        3,996   

Interest on loans and discounts

        369,696            321,811        2,909   

Interest and dividends on securities

        64,159            74,476        673   

Trust fees

        1,143            1,237        11   

Fees and commissions

        279,735            327,317        2,959   

Trading income

        69,995            67,364        609   

Other operating income

        95,532            34,369        311   

Other income

      *1       24,809          *1       79,386        718   

Ordinary expenses

        852,261            664,484        6,007   

Interest expenses

        180,796            87,808        794   

Interest on deposits

        53,401            20,749        188   

Fees and commissions payments

        49,991            54,712        495   

Trading losses

        978            1,582        14   

Other operating expenses

        35,914            36,457        330   

General and administrative expenses

        420,908            437,980        3,960   

Other expenses

      *2       163,670          *2       45,943        415   
     

 

 

       

 

 

   

 

 

 

Ordinary profit

        118,131            287,240        2,597   
     

 

 

       

 

 

   

 

 

 

Extraordinary gains

      *3       37          *3       16         

Extraordinary losses

      *4       1,346          *4       2,445        22   
     

 

 

       

 

 

   

 

 

 

Income before income taxes

        116,823            284,812        2,575   
     

 

 

       

 

 

   

 

 

 

Income taxes

        30,758            79,973        723   
     

 

 

       

 

 

   

 

 

 

Profit

        86,064            204,838        1,852   
     

 

 

       

 

 

   

 

 

 

Profit attributable to non-controlling interests

        (30)           1,595        14   
     

 

 

       

 

 

   

 

 

 

Profit attributable to owners of parent

      ¥        86,095          ¥        203,243      $            1,837   
     

 

 

       

 

 

   

 

 

 
     

 

 

       

 

 

   

 

 

 

 

—3—


Table of Contents

QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

    Millions of yen     Millions of
    U.S. dollars    
 

Three months ended June 30

  2020     2021     2021  

Profit

      ¥ 86,064          ¥ 204,838      $ 1,852   

Other comprehensive income (losses)

                 265,359            55,480        502   

Net unrealized gains (losses) on other securities

        277,614            14,503        131   

Net deferred gains (losses) on hedges

        3,732                     1,606        15   

Foreign currency translation adjustments

        (10,602)           26,720        242   

Remeasurements of defined benefit plans

        1,610            (4,329)       (39)  

Share of other comprehensive income of affiliates

        (6,995)           16,979        154   
     

 

 

       

 

 

   

 

 

 

Total comprehensive income

             351,424                   260,319                   2,353   
     

 

 

       

 

 

   

 

 

 

Comprehensive income attributable to owners of parent

        350,151            258,184        2,334   

Comprehensive income attributable to non-controlling interests

        1,272            2,135        19   

 

—4—


Table of Contents

NOTES TO UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS

(Basis of presentation)

Sumitomo Mitsui Financial Group, Inc. (“the Company”) was established on December 2, 2002 as a holding company for the SMBC group (“the Group”) through a statutory share transfer (kabushiki iten) of all of 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 are different in certain respects as to application and disclosure requirements from International Financial Reporting Standards (“IFRS”).

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 quarterly securities report filed under the Financial Instruments and Exchange Act of Japan (“FIEA based financial statements”) except for the addition of U.S. dollar figures.

Amounts less than 1 million yen 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 the Japanese yen amounts into U.S. dollars is included solely for the convenience of readers outside Japan, using the prevailing exchange rate at June 30, 2021 which was ¥110.61 to US$1. These translations should not be construed as representations that the Japanese yen amounts have been, could have been, or could in the future be, converted into U.S. dollars at that rate.

 

—5—


Table of Contents

(Changes in the scope of consolidation or in the scope of equity method)

 

  (1)

Significant changes in the scope of consolidation

Not applicable.

 

  (2)

Significant changes in the scope of equity method

Not applicable.

(Changes in accounting policies)

Application of Accounting Standard for Revenue Recognition etc.

The Company applied “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020) etc. from the beginning of the period for the three months ended June 30, 2021, and has recognized revenue in an amount expected to be earned in exchange for goods or services at the time when controls of the promised goods or services are transferred to customers.

As for the application of Accounting standards for Revenue Recognition etc., in accordance with transitional treatment stipulated in the proviso of Paragraph 84 of “Accounting Standard for Revenue Recognition”, the cumulative effects by the retroactive application of the new accounting policy previous to the beginning of the period for the three months ended June 30, 2021 are adjusted to “Retained earnings” of the beginning of the period for the three months ended June 30, 2021.

As a result, “Retained earnings” decreased by ¥8,502 million at the beginning of the period for the three months ended June 30, 2021.

In accordance with the transitional measures set forth in paragraph 28-15 of “Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No.12, March 31, 2020), information on breakdowns of revenues from contracts with customers for the three months ended June 30, 2020 is not disclosed.

 

—6—


Table of Contents

(Applied special accounting methods used for preparing quarterly consolidated financial statements)

Accounting treatment of tax expenses

The Company and certain domestic consolidated subsidiaries calculated tax expenses by multiplying Income before income taxes by an effective tax rate that was reasonably estimated by applying tax effect accounting to estimated Income before income taxes for the fiscal year ending March 31, 2022 including the period for the three months ended June 30, 2021. Amounts of Income taxes include Income taxes-deferred.

(Additional information)

Transition from the consolidated corporate-tax system to the group tax sharing system

Companies are required to shift from the consolidated corporate-tax system to the group tax sharing system from the fiscal year beginning on or after April 1, 2022, in accordance with the “Act for Partial Amendment of the Income Tax Act, etc.” (Act No. 8, 2020) enacted on March 31, 2020. However, the Company and certain consolidated domestic subsidiaries, currently adopting the consolidated corporate-tax system, applied the accounting treatment based on the provisions of the Income Tax Act before the amendment for the fiscal year ended June 30, 2021, in accordance with the “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System” (ASBJ Practical Issue Task Force No. 39, March 31, 2020).

(Notes to quarterly consolidated balance sheets)

 

*1

Risk-monitored loans

Risk-monitored loans at March 31, 2021 and June 30, 2021 were as follows:

 

     Millions of yen  
           March 31, 2021                   June 30, 2021          

Bankrupt loans

    ¥ 69,452      ¥ 59,150  

Non-accrual loans

     422,551       419,811  

Past due loans (3 months or more)

     16,784       16,967  

Restructured loans

     430,080       388,761  
  

 

 

   

 

 

 

Risk-monitored loans

    ¥                  938,868      ¥                  884,691  

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

 

*2

Guaranteed amount to privately-placed bonds

The amounts guaranteed by SMBC and its banking subsidiaries to privately-placed bonds (stipulated by Article 2-3 of the Financial Instruments and Exchange Act) in “Securities” at March 31, 2021 and June 30, 2021 were as follows:

 

     Millions of yen  
         March 31, 2021                   June 30, 2021          

Guaranteed amount to privately-placed bonds

    ¥               1,431,071      ¥               1,442,958  

 

—7—


Table of Contents

(Notes to quarterly consolidated statements of income)

 

*1

Other income

“Other income” for the three months ended June 30, 2020 and 2021 included the following:

 

Three months ended June 30, 2020

    Millions of yen      

Three months ended June 30, 2021

   Millions of yen  

Gains on sales of stocks

    ¥       13,986      Gains on sales of stocks     ¥       44,722  
      Equity in gains of affiliates      13,275  

 

*2

Other expenses

“Other expenses” for the three months ended June 30, 2020 and 2021 included the following:

 

Three months ended June 30, 2020

    Millions of yen      

Three months ended June 30, 2021

   Millions of yen  

Provision for reserve for possible loan losses

    ¥       83,341      Write-off of loans     ¥       26,166  

Write-off of loans

     34,033        

Expenses related to equity derivatives

     27,283        

 

*3

Extraordinary gains

“Extraordinary gains” for the three months ended June 30, 2020 and 2021 included the following:

 

Three months ended June 30, 2020

    Millions of yen      

Three months ended June 30, 2021

   Millions of yen  

Gains on disposal of fixed assets

    ¥              37      Gains on disposal of fixed assets     ¥              16  

 

*4

Extraordinary losses

“Extraordinary losses” for the three months ended June 30, 2020 and 2021 included the following:

 

Three months ended June 30, 2020

    Millions of yen     

Three months ended June 30, 2021

   Millions of yen  

Losses on impairment of fixed assets

    ¥            980      Losses on impairment of fixed assets     ¥         1,790  

Provision for reserve for eventual future operating losses from financial instruments transactions

     218      Losses on disposal of fixed assets      627  

 

—8—


Table of Contents

(Notes to quarterly consolidated statements of cash flows)

Quarterly consolidated statements of cash flows are not prepared for the three months ended June 30, 2021. “Depreciation” (including amortization of intangible fixed assets other than goodwill) and “Amortization of goodwill” for the three months ended June 30, 2020 and 2021 are as follows:

 

     Millions of yen  

Three months ended June 30

                            2020                                                       2021                          

Depreciation

    ¥ 52,820       ¥ 54,129  

Amortization of goodwill

     4,383        3,849  

(Notes to stockholders’ equity)

Dividends paid in the three months ended June 30, 2020

 

Date of resolution

  Type of shares     Millions of yen, except per share amount  
  Cash dividends     Cash
dividends
    per share    
            Record date           Effective date   Source of
dividends
 

Ordinary general meeting of shareholders held on
June 26, 2020

    Common stock     ¥   136,952     ¥   100     March 31, 2020   June 29, 2020        
Retained
earnings
 
 

Dividends paid in the three months ended June 30, 2021

 

Date of resolution

  Type of shares     Millions of yen, except per share amount  
  Cash dividends     Cash
dividends
    per share    
            Record date           Effective date   Source of
dividends
 

Ordinary general meeting of shareholders held on
June 29, 2021

    Common stock     ¥   130,190     ¥   95     March 31, 2021   June 30, 2021        
Retained
earnings
 
 

 

—9—


Table of Contents

(Notes to segment and other related information)

[Segment information]

1. Information on profit and loss amount by reportable segment

 

Three months ended June 30, 2020

  Millions of yen  
  Wholesale
Business
Unit
    Retail
Business
Unit
    Global
Business
Unit
    Global Markets
Business
Unit
    Head office
account and
others
    Total  

Consolidated gross profit

  ¥ 120,400      ¥       261,700      ¥     168,000      ¥   147,800      ¥ (19,998   ¥     677,902   

Expenses

    (70,200)       (222,000)       (90,500)       (19,800)       (18,408     (420,908)  

Others

    8,400        600        5,000        9,600        (19,216     4,384   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated net business profit

  ¥        58,600      ¥ 40,300      ¥ 82,500      ¥ 137,600      ¥     (57,622   ¥ 261,378   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Notes:    1.      Figures shown in the parenthesis represent the loss.
   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.

 

Three months ended June 30, 2021

  Millions of yen  
  Wholesale
Business
Unit
    Retail
Business
Unit
    Global
Business
Unit
    Global Markets
Business
Unit
    Head office
account and
others
    Total  

Consolidated gross profit

  ¥ 148,200      ¥       279,400      ¥     187,900      ¥ 132,900      ¥ (56,622   ¥     691,778   

Expenses

    (74,600)       (233,300)       (106,300)       (21,400)       (2,380     (437,980)  

Others

    12,200        300        11,700        8,300        (19,225     13,275   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated net business profit

  ¥        85,800      ¥ 46,400      ¥ 93,300      ¥     119,800      ¥     (78,227   ¥ 267,073   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Notes:    1.      Figures shown in the parenthesis represent the loss.
   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.

 

2.

Difference between total amount of consolidated net business profit by reportable segment and ordinary profit on quarterly consolidated statements of income (adjustment of difference)

 

Three months ended June 30, 2020

  Millions of yen         

Consolidated net business profit

  ¥ 261,378      

Other ordinary income (excluding equity in gains of affiliates)

    20,424      

Other ordinary expenses

    (163,670)     
 

 

 

    

Ordinary profit on quarterly consolidated statements of income

  ¥                 118,131      
 

 

 

    

 

Note:    Figures shown in the parenthesis represent the loss.

 

Three months ended June 30, 2021

  Millions of yen         

Consolidated net business profit

  ¥ 267,073      

Other ordinary income (excluding equity in gains of affiliates)

    66,110      

Other ordinary expenses

    (45,943)     
 

 

 

    

Ordinary profit on quarterly consolidated statements of income

  ¥                 287,240      
 

 

 

    

 

Note:    Figures shown in the parenthesis represent the loss.

 

—10—


Table of Contents

(Notes to financial instruments)

There are no significant matters to be disclosed regarding financial instruments.

(Notes to securities)

The amounts shown in the following tables include negotiable certificates of deposit classified as “Cash and due from banks” and beneficiary claims on loan trust classified as “Monetary claims bought,” in addition to “Securities” stated in the quarterly consolidated balance sheets.

1.    Bonds classified as held-to-maturity

 

     Millions of yen  
     Consolidated             Net unrealized  

March 31, 2021

   balance sheet amount      Fair value      gains (losses)  

Japanese government bonds

   ¥      ¥      ¥  

Japanese local government bonds

     22,300        22,239        (60

Japanese corporate bonds

                    

Other

                    
  

 

 

    

 

 

    

 

 

 

Total

   ¥ 22,300      ¥ 22,239      ¥ (60
  

 

 

    

 

 

    

 

 

 

 

Note:      The fair values are based on their market prices and others at the end of the fiscal year.

 

    

 

Millions of yen

 
     Quarterly consolidated             Net unrealized  

June 30, 2021

   balance sheet amount      Fair value      gains (losses)  

Japanese government bonds

   ¥      ¥      ¥  

Japanese local government bonds

     22,300        22,320        20  

Japanese corporate bonds

                    

Other

                             —                                —                                —  
  

 

 

    

 

 

    

 

 

 

Total

   ¥ 22,300      ¥ 22,320      ¥ 20  
  

 

 

    

 

 

    

 

 

 

 

Note:      The fair values are based on their market prices and others at the end of the period.

 

 

—11—


Table of Contents

2. Other securities

 

     Millions of yen         

March 31, 2021

   Acquisition cost      Consolidated
 balance sheet amount 
     Net unrealized
gains (losses)
        

Stocks

   ¥ 1,294,609       ¥ 3,550,247       ¥ 2,255,637      

Bonds

     17,647,205         17,655,237         8,032      

Japanese government bonds

     14,307,684         14,293,610         (14,074)     

Japanese local government bonds

     733,276         732,622         (654)     

Japanese corporate bonds

     2,606,244         2,629,005         22,761      

Other

     14,079,437         14,747,596         668,159      
  

 

 

    

 

 

    

 

 

    

Total

   ¥         33,021,251       ¥         35,953,082       ¥         2,931,830      
  

 

 

    

 

 

    

 

 

    

 

Notes:   1.  

Consolidated balance sheet amount is measured at fair value based on its market price and others at the end of the fiscal year.

  2.  

 

Net unrealized gains (losses) on other securities shown above include gains of ¥399 million for the fiscal year ended March 31, 2021 that are recognized in the earnings by applying fair value hedge accounting.

 

     Millions of yen         

June 30, 2021

   Acquisition cost      Quarterly consolidated
balance sheet amount
     Net unrealized
gains (losses)
        

Stocks

   ¥ 1,258,865       ¥ 3,474,958       ¥ 2,216,092      

Bonds

     17,398,384         17,415,990         17,606      

Japanese government bonds

     13,916,983         13,908,526         (8,457)     

Japanese local government bonds

     831,767         833,133         1,365      

Japanese corporate bonds

     2,649,633         2,674,331         24,697      

Other

     13,657,033         14,372,846         715,812      
  

 

 

    

 

 

    

 

 

    

Total

   ¥         32,314,284       ¥         35,263,794       ¥         2,949,510      
  

 

 

    

 

 

    

 

 

    

 

Notes:   1.  

Quarterly consolidated balance sheet amount is measured at fair value based on its market price and others at the end of the period.

  2.  

Net unrealized gains (losses) on other securities shown above include losses of ¥5,824 million for the three months ended June 30, 2021 that are recognized in the earnings by applying fair value hedge accounting.

 

—12—


Table of Contents

3.    Write-down of securities

Bonds classified as held-to-maturity and other securities (excluding other securities whose quarterly consolidated balance sheet amounts are not measured at fair value) are considered as impaired if the fair value decreases materially below the acquisition cost and such decline is not considered as recoverable. The fair value is recognized as the quarterly consolidated balance sheet amount and the amount of write-down is accounted for as valuation loss for the period. Valuation losses for the fiscal year ended March 31, 2021 and for the three months ended June 30, 2021 were ¥8,480 million and ¥3,315 million, respectively. The rule for determining “material decline” is as follows and is based on the classification of issuers under the rules of self-assessment of assets.

 

Bankrupt/Effectively bankrupt/Potentially bankrupt issuers:    Fair value is lower than acquisition cost.   
Issuers requiring caution:    Fair value is 30% or lower than acquisition cost.   
Normal issuers:    Fair value is 50% or lower than acquisition cost.   

Bankrupt issuers: Issuers that are legally bankrupt or formally declared bankrupt.

Effectively bankrupt issuers: Issuers that are not legally bankrupt but regarded as substantially bankrupt.

Potentially bankrupt issuers: Issuers that are not bankrupt now, but are perceived to have a high risk of falling into bankruptcy.

Issuers requiring caution: Issuers that are identified for close monitoring.

Normal issuers: Issuers other than the above 4 categories of issuers.

(Notes to money held in trust)

 

1.

Money held in trust classified as held-to-maturity

Fiscal year ended March 31, 2021

There are no corresponding transactions.

Three months ended June 30, 2021

There are no corresponding transactions.

 

2.

Other money held in trust (Other than trading and held to maturity)

 

    Millions of yen  

March 31, 2021

  Acquisition cost     Consolidated
balance sheet
amount
    Net unrealized
gains (losses)
 

Other money held in trust

  ¥                         309      ¥                         309                                —   

 

Note:    Consolidated balance sheet amount is measured at fair value based on its market price and others at the end of the fiscal year.

 

    Millions of yen  

June 30, 2021

  Acquisition cost     Quarterly consolidated
balance sheet
amount
    Net unrealized
gains (losses)
 

Other money held in trust

  ¥                         309      ¥                     309                                —   

 

Note:    Quarterly consolidated balance sheet amount is measured at fair value based on its market price and others at the end of the period.

 

—13—


Table of Contents

(Notes to derivative transactions)

 

(1)

Interest rate derivatives

 

     Millions of yen  

March 31, 2021

       Contract amount                  Fair Value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Interest rate futures

   ¥ 25,888,051        ¥ (399)      ¥ (399)  

Interest rate options

     186,354,379          24,132         24,132   

Over-the-counter

        

Forward rate agreements

     110,232,727          (3)        (3)  

Interest rate swaps

           468,245,252          236,177         236,177   

Interest rate swaptions

     12,923,702          (5,569)        (5,569)  

Caps

     78,116,759          (30,248)        (30,248)  

Floors

     6,387,606          1,437         1,437   

Other

     7,937,112          49,813         49,813   
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 275,340       ¥ 275,340   
  

 

 

    

 

 

    

 

 

 

 

Note:    The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.
   Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

     Millions of yen  

June 30, 2021

       Contract amount                  Fair Value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Interest rate futures

   ¥ 23,004,962        ¥ 309       ¥ 309   

Interest rate options

     187,796,537          23,424         23,424   

Over-the-counter

        

Forward rate agreements

     71,882,459          (0)        (0)  

Interest rate swaps

           476,309,844          275,632         275,632   

Interest rate swaptions

     15,399,272          (9,355)        (9,355)  

Caps

     81,833,581          (30,723)        (30,723)  

Floors

     6,454,084          4,027         4,027   

Other

     7,614,640          47,319         47,319   
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 310,632       ¥ 310,632   
  

 

 

    

 

 

    

 

 

 

 

Note:    The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income.
   Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

—14—


Table of Contents
(2)

Currency derivatives

 

     Millions of yen  

March 31, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Currency futures

   ¥ 8,068        ¥ 93       ¥ 93   

Over-the-counter

        

Currency swaps

             76,626,201          (78,194)        161,586   

Currency swaptions

     590,391          (375)        (375)  

Forward foreign exchange

     77,285,120          134,477         134,477   

Currency options

     5,349,872          (2,957)        (2,957)  
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥     53,043       ¥ 292,824   
  

 

 

    

 

 

    

 

 

 

 

Note:   

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.

Derivative transactions to which the hedge accounting method is applied are not included in the table above. In addition, transactions related to financial assets and liabilities denominated in foreign currencies and recognized in the consolidated balance sheets, or transactions related to financial assets and liabilities denominated in foreign currencies which have been eliminated in the consolidation are not included in the table above.

 

     Millions of yen  

June 30, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Currency futures

   ¥ 10,221        ¥ (29)      ¥ (29)  

Over-the-counter

        

Currency swaps

             75,697,308          88,654         160,915   

Currency swaptions

     556,699          (392)        (392)  

Forward foreign exchange

     76,966,090          41,810           41,810   

Currency options

     5,214,487          (5,193)        (5,193)  
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 124,849       ¥ 197,109   
  

 

 

    

 

 

    

 

 

 

 

Note:   

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income.

Derivative transactions to which the hedge accounting method is applied are not included in the table above. In addition, transactions related to financial assets and liabilities denominated in foreign currencies and recognized in the quarterly consolidated balance sheets, or transactions related to financial assets and liabilities denominated in foreign currencies which have been eliminated in the consolidation are not included in the table above.

 

—15—


Table of Contents
(3)

Equity derivatives

 

     Millions of yen  

March 31, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Equity price index futures

   ¥           1,608,787        ¥ 4,413       ¥ 4,413   

Equity price index options

     950,757          (35,025)        (35,025)  

Over-the-counter

        

Equity options

     158,739          12,997         12,997   

Equity index forward contracts

     3,574          98         98   

Equity index swaps

     280,436          11,472         11,472   
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ (6,043)      ¥ (6,043)  
  

 

 

    

 

 

    

 

 

 

 

Note:

  

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

     Millions of yen  

June 30, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Equity price index futures

   ¥ 890,999        ¥ 9,830       ¥ 9,830   

Equity price index options

               1,142,654          (18,577)        (18,577)  

Over-the-counter

        

Equity options

     212,018          8,746         8,746   

Equity index forward contracts

     3,740          (155)        (155)  

Equity index swaps

     296,157          424         424   
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 268       ¥ 268   
  

 

 

    

 

 

    

 

 

 

 

Note:

  

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income.

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

 

—16—


Table of Contents
(4)

Bond derivatives

 

     Millions of yen  

March 31, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Bond futures

   ¥           2,944,735        ¥ 536       ¥ 536   

Bond futures options

     70,891                 (52)        (52)  

Over-the-counter

        

Bond forward contracts

     103                  

Bond options

     226,347          15         15   
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 503       ¥ 503   
  

 

 

    

 

 

    

 

 

 

 

Note:

  

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

     Millions of yen  

June 30, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Bond futures

   ¥           5,673,299        ¥ 306       ¥ 306   

Bond futures options

     47,883                  

Over-the-counter

        

Bond forward contracts

               —         —   

Bond options

     237,384          227         227   
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 536       ¥ 536   
  

 

 

    

 

 

    

 

 

 

 

Note:

  

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income.

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

—17—


Table of Contents
(5)

Commodity derivatives

 

     Millions of yen  

March 31, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Commodity futures

   ¥ 30,916        ¥ 532       ¥ 532   

Over-the-counter

        

Commodity swaps

                    76,264                    1,973                   1,973   

Commodity options

     2,484          (486)        (486)  
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 2,019       ¥ 2,019   
  

 

 

    

 

 

    

 

 

 

 

Notes:   1.   

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.

    

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

  2.   

Underlying assets of commodity derivatives are fuels and metals.

 

     Millions of yen  

June 30, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Listed

                                                                                                    

Commodity futures

   ¥ 19,367        ¥ 652       ¥ 652   

Over-the-counter

        

Commodity swaps

                    72,358                  1,813                   1,813   

Commodity options

     3,580          (520)        (520)  
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ 1,944       ¥ 1,944   
  

 

 

    

 

 

    

 

 

 

 

Notes:   1.   

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income.

    

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

  2.   

Underlying assets of commodity derivatives are fuels and metals.

 

—18—


Table of Contents
(6)

Credit derivative transactions

 

     Millions of yen  

March 31, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Over-the-counter

                                                                                                    

Credit default options

   ¥          2,774,559        ¥         (5,716)      ¥       (5,716)  
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ (5,716)      ¥ (5,716)  
  

 

 

    

 

 

    

 

 

 

 

Note:   

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the consolidated statements of income.

  

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

     Millions of yen  

June 30, 2021

       Contract amount                  Fair value              Valuation
    gains (losses)    
 

Over-the-counter

                                                                                                    

Credit default options

   ¥          2,641,676        ¥         (6,017)      ¥       (6,017)  
  

 

 

    

 

 

    

 

 

 

Total

     /        ¥ (6,017)      ¥ (6,017)  
  

 

 

    

 

 

    

 

 

 

 

Note:   

The above transactions are valued at fair value and the valuation gains (losses) are accounted for in the quarterly consolidated statements of income.

  

Derivative transactions to which the hedge accounting method is applied are not included in the table above.

 

—19—


Table of Contents

(Business combination)

There is no significant business combination to be disclosed.

(Revenue recognition)

Information on breakdown of revenues from contracts with customers.

 

Three months ended June 30

  Millions of yen  
  2021  

Ordinary income

  ¥                                 951,725   

Fees and commissions

    327,317   

Deposits and loans

    38,082   

Remittances and transfers

    35,873   

Securities-related business

    43,394   

Agency

    2,237   

Safe deposits

    1,997   

Guarantees

    20,314   

Credit card business

    79,396   

Investment trusts

    46,845   

Others

    59,173   

 

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 Instrument” (ASBJ Statement No. 10) is also included in the table above.

 

—20—


Table of Contents

(Per share data)

Earnings per share, earnings per share (diluted) and each calculation method are as follows:

 

         

Three months ended June 30

   Millions of yen, except per share data
and number of shares
 
   2020      2021  
 

(i) Earnings per share

   ¥ 62.86      ¥ 148.30   
 

[The calculation method]

     
 

  Profit attributable to owners of parent

     86,095        203,243  
 

  Amount not attributable to common stockholders

     —         —   
 

  Profit attributable to owners of parent concerning common stock

     86,095        203,243  
 

  Average number of common stock during the period (in thousands)

     1,369,568        1,370,486  
 

(ii) Earnings per share (diluted)

   ¥                       62.83       ¥                     148.24   
 

[The calculation method]

     
 

  Adjustment for profit attributable to owners of parent

     (0)        —   
 

  Adjustment of dilutive shares issued by consolidated subsidiaries and equity method affiliates

     (0)        —   
 

  Increase in the number of common stock (in thousands)

     722         597   
 

  Stock acquisition rights (in thousands)

     722         597   
 

  Outline of dilutive shares which were not included in the calculation of “Earnings Per Share (diluted)” because they do not have dilutive effect and have significant changes from the fiscal year ended March 31, 2021:

     —         —   

(Significant Subsequent Events)

There are no significant subsequent events to be disclosed.

(Others)

Not applicable.

 

—21—