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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE13a-16 OR15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of February 2020
Commission file number001-34919
SUMITOMO MITSUI FINANCIAL GROUP, INC.
(Translation of registrant’s name into English)
1-2, Marunouchi1-chome, Chiyoda-ku, Tokyo100-0005, Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form20-F orForm 40-F:
Form 20-F ☒ or Form40-F ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-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 Rule12g3-2(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 Rule12g3-2(b): 82- |
THIS REPORT ON FORM6-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 FORMF-3 (FILENO. 333-228913) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
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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: February 18, 2020
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UNAUDITED QUARTERLY CONSOLIDATED JAPANESE GAAP FINANCIAL STATEMENTS
AS OF AND FOR THE NINE MONTHS ENDED DECEMBER 31, 2019
On February 14, 2020, we published our unaudited quarterly consolidated financial statements as of and for the nine months ended December 31, 2019 prepared in accordance with accounting principles generally accepted in Japan, or Japanese GAAP, as part of our quarterly securities report (shihanki hokokusho) for the quarter ended December 31, 2019 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 Form20-F filed with the SEC.
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UNAUDITED QUARTERLY
CONSOLIDATED FINANCIAL STATEMENTS (JAPANESE GAAP)
QUARTERLY CONSOLIDATED BALANCE SHEETS
Millions of yen | Millions of U.S. dollars | |||||||||||||||
March 31, 2019 | December 31, 2019 | December 31, 2019 | ||||||||||||||
Assets: | ||||||||||||||||
Cash and due from banks | ¥ | 57,411,276 | ¥ | 57,116,179 | $ | 521,418 | ||||||||||
Call loans and bills bought | 2,465,744 | 1,224,784 | 11,181 | |||||||||||||
Receivables under resale agreements | 6,429,365 | 6,812,876 | 62,195 | |||||||||||||
Receivables under securities borrowing transactions | 4,097,473 | 4,001,983 | 36,534 | |||||||||||||
Monetary claims bought | 4,594,578 | 5,145,865 | 46,977 | |||||||||||||
Trading assets | 5,328,778 | 6,112,474 | 55,801 | |||||||||||||
Money held in trust | 390 | 217 | 2 | |||||||||||||
Securities | *2 | 24,338,005 | *2 | 28,283,273 | 258,200 | |||||||||||
Loans and bills discounted | *1 | 77,979,190 | *1 | 80,339,428 | 733,425 | |||||||||||
Foreign exchanges | 1,719,402 | 2,294,395 | 20,946 | |||||||||||||
Lease receivables and investment assets | 247,835 | 239,266 | 2,184 | |||||||||||||
Other assets | 7,307,305 | 9,069,607 | 82,797 | |||||||||||||
Tangible fixed assets | 1,504,703 | 1,487,467 | 13,579 | |||||||||||||
Intangible fixed assets | 769,231 | 781,740 | 7,137 | |||||||||||||
Net defined benefit asset | 329,434 | 350,595 | 3,201 | |||||||||||||
Deferred tax assets | 40,245 | 15,322 | 140 | |||||||||||||
Customers’ liabilities for acceptances and guarantees | 9,564,993 | 9,616,327 | 87,788 | |||||||||||||
Reserve for possible loan losses | (468,808) | (452,365) | (4,130) | |||||||||||||
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Total assets | ¥ | 203,659,146 | ¥ | 212,439,441 | $ | 1,939,378 | ||||||||||
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QUARTERLY CONSOLIDATED BALANCE SHEETS
Millions of yen | Millions of U.S. dollars | |||||||||||||||
March 31, 2019 | December 31, 2019 | December 31, 2019 | ||||||||||||||
Liabilities and net assets: | ||||||||||||||||
Liabilities: | ||||||||||||||||
Deposits | ¥ | 122,325,038 | ¥ | 124,474,270 | $ | 1,136,336 | ||||||||||
Negotiable certificates of deposit | 11,165,486 | 11,686,656 | 106,688 | |||||||||||||
Call money and bills sold | 1,307,778 | 1,314,633 | 12,001 | |||||||||||||
Payables under repurchase agreements | 11,462,559 | 14,034,730 | 128,124 | |||||||||||||
Payables under securities lending transactions | 1,812,820 | 1,581,348 | 14,436 | |||||||||||||
Commercial paper | 2,291,813 | 1,920,267 | 17,530 | |||||||||||||
Trading liabilities | 4,219,293 | 4,703,914 | 42,942 | |||||||||||||
Borrowed money | 10,656,897 | 10,510,084 | 95,947 | |||||||||||||
Foreign exchanges | 1,165,141 | 1,268,205 | 11,578 | |||||||||||||
Short-term bonds | 84,500 | 324,000 | 2,958 | |||||||||||||
Bonds | 9,227,367 | 9,633,063 | 87,941 | |||||||||||||
Due to trust account | 1,352,773 | 1,905,937 | 17,399 | |||||||||||||
Other liabilities | 4,873,630 | 7,356,828 | 67,161 | |||||||||||||
Reserve for employee bonuses | 70,351 | 40,041 | 366 | |||||||||||||
Reserve for executive bonuses | 3,091 | — | — | |||||||||||||
Net defined benefit liability | 31,816 | 33,497 | 306 | |||||||||||||
Reserve for executive retirement benefits | 1,374 | 1,182 | 11 | |||||||||||||
Reserve for point service program | 23,948 | 25,631 | 234 | |||||||||||||
Reserve for reimbursement of deposits | 7,936 | 2,199 | 20 | |||||||||||||
Reserve for losses on interest repayment | 147,594 | 116,494 | 1,063 | |||||||||||||
Reserves under the special laws | 2,847 | 2,989 | 27 | |||||||||||||
Deferred tax liabilities | 378,220 | 463,179 | 4,228 | |||||||||||||
Deferred tax liabilities for land revaluation | 30,259 | 30,074 | 275 | |||||||||||||
Acceptances and guarantees | 9,564,993 | 9,616,327 | 87,788 | |||||||||||||
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Total liabilities | 192,207,534 | 201,045,558 | 1,835,362 | |||||||||||||
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Net assets: | ||||||||||||||||
Capital stock | 2,339,443 | 2,339,964 | 21,362 | |||||||||||||
Capital surplus | 739,047 | 692,065 | 6,318 | |||||||||||||
Retained earnings | 5,992,247 | 6,243,496 | 56,997 | |||||||||||||
Treasury stock | (16,302) | (14,212) | (130) | |||||||||||||
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Total stockholders’ equity | 9,054,436 | 9,261,313 | 84,547 | |||||||||||||
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Net unrealized gains (losses) on other securities | 1,688,852 | 1,814,464 | 16,564 | |||||||||||||
Net deferred gains (losses) on hedges | (54,650) | (54,937) | (502) | |||||||||||||
Land revaluation excess | 36,547 | 36,987 | 338 | |||||||||||||
Foreign currency translation adjustments | 50,379 | 2,034 | 19 | |||||||||||||
Accumulated remeasurements of defined benefit plans | (7,244) | (3,653) | (33) | |||||||||||||
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Total accumulated other comprehensive income | 1,713,884 | 1,794,896 | 16,386 | |||||||||||||
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Stock acquisition rights | 4,750 | 4,141 | 38 | |||||||||||||
Non-controlling interests | 678,540 | 333,531 | 3,045 | |||||||||||||
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Total net assets | 11,451,611 | 11,393,883 | 104,016 | |||||||||||||
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Total liabilities and net assets | ¥ | 203,659,146 | ¥ | 212,439,441 | $ | 1,939,378 | ||||||||||
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QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
Millions of yen | Millions of U.S. dollars | |||||||||||||||||||||||||||
Nine months ended December 31 | 2018 | 2019 | 2019 | |||||||||||||||||||||||||
Ordinary income | ¥ | 4,391,116 | ¥ | 4,021,547 | $ | 36,713 | ||||||||||||||||||||||
Interest income | 1,824,051 | 1,891,407 | 17,267 | |||||||||||||||||||||||||
Interest on loans and discounts | 1,204,451 | 1,319,430 | 12,045 | |||||||||||||||||||||||||
Interest and dividends on securities | 269,873 | 249,199 | 2,275 | |||||||||||||||||||||||||
Trust fees | 3,344 | 3,396 | 31 | |||||||||||||||||||||||||
Fees and commissions | 916,263 | 961,201 | 8,775 | |||||||||||||||||||||||||
Trading income | 139,010 | 165,376 | 1,510 | |||||||||||||||||||||||||
Other operating income | 1,339,889 | 811,147 | 7,405 | |||||||||||||||||||||||||
Other income | *1 | 168,557 | *1 | 189,017 | 1,726 | |||||||||||||||||||||||
Ordinary expenses | 3,459,656 | 3,209,718 | 29,302 | |||||||||||||||||||||||||
Interest expenses | 835,408 | 933,048 | 8,518 | |||||||||||||||||||||||||
Interest on deposits | 324,817 | 357,417 | 3,263 | |||||||||||||||||||||||||
Fees and commissions payments | 147,228 | 160,255 | 1,463 | |||||||||||||||||||||||||
Trading losses | 3,137 | — | — | |||||||||||||||||||||||||
Other operating expenses | 1,089,951 | 665,754 | 6,078 | |||||||||||||||||||||||||
General and administrative expenses | 1,279,532 | 1,299,281 | 11,861 | |||||||||||||||||||||||||
Other expenses | *2 | 104,398 | *2 | 151,379 | 1,382 | |||||||||||||||||||||||
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Ordinary profit | 931,459 | 811,829 | 7,411 | |||||||||||||||||||||||||
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Extraordinary gains | *3 | 414 | *3 | 23,765 | 217 | |||||||||||||||||||||||
Extraordinary losses | *4 | 8,060 | *4 | 4,163 | 38 | |||||||||||||||||||||||
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Income before income taxes | 923,814 | 831,431 | 7,590 | |||||||||||||||||||||||||
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Income taxes | 200,493 | 204,996 | 1,871 | |||||||||||||||||||||||||
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Profit | 723,320 | 626,434 | 5,719 | |||||||||||||||||||||||||
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Profit attributable tonon-controlling interests | 85,438 | 15,603 | 142 | |||||||||||||||||||||||||
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Profit attributable to owners of parent | ¥ | 637,882 | ¥ | 610,830 | $ | ��5,576 | ||||||||||||||||||||||
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QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions of yen | Millions of U.S. dollars | |||||||||||||||||||||||||||
Nine months ended December 31 | 2018 | 2019 | 2019 | |||||||||||||||||||||||||
Profit | ¥ | 723,320 | ¥ | 626,434 | $ | 5,719 | ||||||||||||||||||||||
Other comprehensive income | (216,958) | 82,340 | 752 | |||||||||||||||||||||||||
Net unrealized gains (losses) on other securities | (227,761) | 121,424 | 1,108 | |||||||||||||||||||||||||
Net deferred gains (losses) on hedges | (3,163) | 9,380 | 86 | |||||||||||||||||||||||||
Foreign currency translation adjustments | 23,042 | (36,623) | (334) | |||||||||||||||||||||||||
Remeasurements of defined benefit plans | (6,365) | 2,985 | 27 | |||||||||||||||||||||||||
Share of other comprehensive income of affiliates | (2,710) | (14,826) | (135) | |||||||||||||||||||||||||
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Total comprehensive income | 506,361 | 708,774 | 6,470 | |||||||||||||||||||||||||
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Comprehensive income attributable to owners of parent | 413,125 | 691,402 | 6,312 | |||||||||||||||||||||||||
Comprehensive income attributable tonon-controlling interests | 93,236 | 17,371 | 159 |
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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 December 31, 2019 which was ¥109.54 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.
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(Changes in the scope of consolidation or in the scope of equity method)
(1) | Significant changes in the scope of consolidation |
SMM Auto Finance, Inc. was excluded from the scope of consolidation from the nine months ended December 31, 2019 as it ceased to be a subsidiary due to the sale of shares.
(2) | Significant changes in the scope of equity method |
Daiwa SB Investments Ltd. was excluded from the scope of equity method affiliates from the nine months ended December 31, 2019 as it ceased to be an affiliate due to a merger.
(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, 2020 including the period for the nine months ended December 31, 2019.
Amounts of Income taxes include Income taxes-deferred.
(Notes to quarterly consolidated balance sheets)
*1 | Risk-monitored loans |
Risk-monitored loans in “Loans and bills discounted” at March 31, 2019 and December 31, 2019 were as follows:
Millions of yen | ||||||||
March 31, 2019 | December 31, 2019 | |||||||
Bankrupt loans | ¥ | 12,806 | ¥ | 12,259 | ||||
Non-accrual loans | 456,802 | 431,092 | ||||||
Past due loans (3 months or more) | 13,444 | 15,655 | ||||||
Restructured loans | 193,427 | 209,974 | ||||||
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Risk-monitored loans | ¥ | 676,481 | ¥ | 668,982 |
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 Article2-3 of the Financial Instruments and Exchange Act) in “Securities” at March 31, 2019 and December 31, 2019 were as follows:
Millions of yen | ||||||||
March 31, 2019 | December 31, 2019 | |||||||
Guaranteed amount to privately-placed bonds | ¥ | 1,662,777 | ¥ | 1,601,675 |
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(Notes to quarterly consolidated statements of income)
*1 | Other income |
“Other income” for the nine months ended December 31, 2018 and 2019 included the following:
Nine months ended December 31, 2018 | Millions of yen | Nine months ended December 31, 2019 | Millions of yen | |||||||
Gains on sales of stocks and other securities | ¥ | 92,196 | Gains on sales of stocks and other securities | ¥ | 120,025 |
*2 | Other expenses |
“Other expenses” for the nine months ended December 31, 2018 and 2019 included the following:
Nine months ended December 31, 2018 | Millions of yen | Nine months ended December 31, 2019 | Millions of yen | |||||||
Write-off of loans | ¥ | 70,687 | Write-off of loans | ¥ | 70,255 |
*3 | Extraordinary gains |
“Extraordinary gains” for the nine months ended December 31, 2018 and 2019 included the following:
Nine months ended December 31, 2018 | Millions of yen | Nine months ended December 31, 2019 | Millions of yen | |||||||
Gains on disposal of fixed assets | ¥ | 414 | Gains on step acquisitions | ¥ | 21,997 |
*4 | Extraordinary losses |
“Extraordinary losses” for the nine months ended December 31, 2018 and 2019 included the following:
Nine months ended December 31, 2018 | Millions of yen | Nine months ended December 31, 2019 | Millions of yen | |||||||
Losses on impairment of fixed assets | ¥ | 4,169 | Losses on impairment of fixed assets | ¥ | 2,643 | |||||
Losses on disposal of fixed assets | 3,327 | Losses on disposal of fixed assets | 1,379 |
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(Notes to quarterly consolidated statements of cash flows)
Quarterly consolidated statements of cash flows are not prepared for the nine months ended December 31, 2019. “Depreciation” (including amortization of intangible fixed assets other than goodwill) and “Amortization of goodwill” for the nine months ended December 31, 2018 and 2019 are as follows:
Millions of yen | ||||||||
Nine months ended December 31 | 2018 | 2019 | ||||||
Depreciation | ¥ | 218,268 | ¥ | 162,119 | ||||
Amortization of goodwill | 17,178 | 13,109 |
(Notes to stockholders’ equity)
Dividends paid in the nine months ended December 31, 2018
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
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| Common stock
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| 126,950
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| 90
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| June 29, 2018
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Meeting of the Board of Directors held on November 13, | Common stock | 118,626 | 85 | September 30, 2018 | December 4, 2018 | | Retained earnings | |
Dividends paid in the nine months ended December 31, 2019
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
| Common stock | ¥
| 132,582
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| 95
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| March 31, 2019
| June 28, 2019
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Meeting of the Board of Directors held on November 12, |
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Common stock |
| 123,252 | 90 | September 30, 2019 | December 3, 2019 | | Retained earnings | |
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(Notes to segment and other related information)
[Segment information]
1. Information on profit and loss amount by reportable segment
Millions of yen | ||||||||||||||||||||||||
Nine months ended December 31, 2018 | Wholesale Business Unit | Retail Business Unit | International Business Unit | Global Markets Business Unit | Head office account and others | Total | ||||||||||||||||||
Consolidated gross profit | ¥ | 580,807 | ¥ | 943,665 | ¥ | 513,103 | ¥ | 276,321 | ¥ | (167,063) | ¥ | 2,146,833 | ||||||||||||
Expenses | (262,046) | (763,169) | (235,091) | (40,187) | 20,961 | (1,279,532) | ||||||||||||||||||
Others | 31,750 | 9,292 | 31,289 | 14,453 | (44,307) | 42,477 | ||||||||||||||||||
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Consolidated net business profit | ¥ | 350,510 | ¥ | 189,788 | ¥ | 309,301 | ¥ | 250,587 | ¥ | (190,408) | ¥ | 909,778 | ||||||||||||
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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. |
Millions of yen | ||||||||||||||||||||||||
Nine months ended December 31, 2019 | Wholesale Business Unit | Retail Business Unit | International Business Unit | Global Markets Business Unit | Head office account and others | Total | ||||||||||||||||||
Consolidated gross profit | ¥ | 469,397 | ¥ | 933,938 | ¥ | 509,405 | ¥ | 347,759 | ¥ | (187,027) | ¥ | 2,073,472 | ||||||||||||
Expenses | (211,789) | (761,534) | (270,505) | (44,097) | (11,355) | (1,299,281) | ||||||||||||||||||
Others | 35,524 | 1,436 | 41,988 | 25,900 | (57,253) | 47,595 | ||||||||||||||||||
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Consolidated net business profit | ¥ | 293,131 | ¥ | 173,839 | ¥ | 280,889 | ¥ | 329,562 | ¥ | (255,635) | ¥ | 821,786 | ||||||||||||
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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) |
Nine months ended December 31, 2018 | Millions of yen | |||||||
Consolidated net business profit | ¥ | 909,778 | ||||||
Other ordinary income (excluding equity in gains of affiliates) | 126,079 | |||||||
Other ordinary expenses | (104,398) | |||||||
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Ordinary profit on quarterly consolidated statements of income | ¥ | 931,459 | ||||||
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Note: Figures shown in the parenthesis represent the loss.
Nine months ended December 31, 2019 | Millions of yen | |||||||
Consolidated net business profit | ¥ | 821,786 | ||||||
Other ordinary income (excluding equity in gains of affiliates) | 141,421 | |||||||
Other ordinary expenses | (151,379) | |||||||
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Ordinary profit on quarterly consolidated statements of income | ¥ | 811,829 | ||||||
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Note: Figures shown in the parenthesis represent the loss.
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(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 asheld-to-maturity
March 31, 2019 | Millions of yen | |||||||||||||
Consolidated balance sheet amount | Fair value | Net unrealized gains (losses) | ||||||||||||
Japanese government bonds | ¥ | 280,247 | ¥ | 281,136 | ¥ | 888 | ||||||||
Japanese local government bonds | — | — | — | |||||||||||
Japanese corporate bonds | — | — | — | |||||||||||
Other | — | — | — | |||||||||||
|
|
|
|
|
| |||||||||
Total | ¥ | 280,247 | ¥ | 281,136 | ¥ | 888 | ||||||||
|
|
|
|
|
| |||||||||
Note: The fair values are, in principle, based on their market prices and others at the end of the fiscal year. | ||||||||||||||
December 31, 2019 |
Millions of yen | |||||||||||||
Quarterly consolidated balance sheet amount | Fair value | Net unrealized gains (losses) | ||||||||||||
Japanese government bonds | ¥ | 260,119 | ¥ | 260,442 | ¥ | 322 | ||||||||
Japanese local government bonds | 2,300 | 2,303 | 3 | |||||||||||
Japanese corporate bonds | — | — | — | |||||||||||
Other | — | — | — | |||||||||||
|
|
|
|
|
| |||||||||
Total | ¥ | 262,419 | ¥ | 262,745 | ¥ | 325 | ||||||||
|
|
|
|
|
| |||||||||
Note: The fair values are, in principle, based on their market prices and others at the end of the period. |
10
Table of Contents
2. Other securities
Millions of yen | ||||||||||||||||
March 31, 2019 | Acquisition cost | Consolidated balance sheet amount | Net unrealized gains (losses) | |||||||||||||
Stocks | ¥ | 1,444,638 | ¥ | 3,347,577 | ¥ | 1,902,938 | ||||||||||
Bonds | 8,923,365 | 8,983,731 | 60,365 | |||||||||||||
Japanese government bonds | 6,211,070 | 6,234,326 | 23,255 | |||||||||||||
Japanese local government bonds | 98,428 | 99,164 | 735 | |||||||||||||
Japanese corporate bonds | 2,613,866 | 2,650,240 | 36,374 | |||||||||||||
Other | 10,725,378 | 11,083,416 | 358,038 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total | ¥ | 21,093,383 | ¥ | 23,414,725 | ¥ | 2,321,342 | ||||||||||
|
|
|
|
|
|
Notes: | 1. | Consolidated balance sheet amounts of stocks (including foreign stocks) are carried at their average market prices during the final month of the fiscal year, and bonds and others are carried at their fiscalyear-end market prices.
| ||
2. | Net unrealized gains (losses) on other securities shown above include losses of ¥12,277 million for the fiscal year ended March 31, 2019 that are recognized in the earnings by applying fair value hedge accounting.
| |||
3. | Consolidated balance sheet amounts of other securities whose fair values are extremely difficult to determine are as follows: |
March 31, 2019 | Millions of yen | |||
Stocks | ¥ | 139,051 | ||
Other | 246,765 | |||
|
| |||
Total | ¥ | 385,817 | ||
|
|
These amounts are not included in “2. Other securities” since there are no market prices and it is extremely difficult to determine their fair values.
| ||||
4. | In light of the “Practical Solution on Measurement of Fair Value for Financial Assets” (ASBJ Practical Issues Task Force No. 25), the fair values of floating rate government bonds are based on the present value of future cash flows (the government bond yield is used to discount and estimate future cash flows). Bond yield and yield volatility are the main price parameters. |
Millions of yen | ||||||||||||||||
December 31, 2019 | Acquisition cost | Quarterly Consolidated balance sheet amount | Net unrealized gains (losses) | |||||||||||||
Stocks | ¥ | 1,371,097 | ¥ | 3,330,011 | ¥ | 1,958,913 | ||||||||||
Bonds | 11,399,720 | 11,426,598 | 26,878 | |||||||||||||
Japanese government bonds | 8,350,645 | 8,347,342 | (3,303) | |||||||||||||
Japanese local government bonds | 197,360 | 197,446 | 86 | |||||||||||||
Japanese corporate bonds | 2,851,714 | 2,881,809 | 30,095 | |||||||||||||
Other | 11,959,491 | 12,482,877 | 523,386 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total | ¥ | 24,730,308 | ¥ | 27,239,487 | ¥ | 2,509,179 | ||||||||||
|
|
|
|
|
|
Notes: | 1. | Quarterly consolidated balance sheet amounts of stocks (including foreign stocks) are carried at their average market prices during the final month of the period, and bonds and others are carried at theirperiod-end market prices.
| ||
2. | Net unrealized gains (losses) on other securities shown above include losses of ¥11,001 million for the nine months ended December 31, 2019 that are recognized in the earnings by applying fair value hedge accounting.
| |||
3. | Quarterly consolidated balance sheet amounts of other securities whose fair values are extremely difficult to determine are as follows: |
December 31, 2019 | Millions of yen | |||
Stocks | ¥ | 143,292 | ||
Other | 278,732 | |||
|
| |||
Total | ¥ | 422,025 | ||
|
|
These amounts are not included in “2. Other securities” since there are no market prices and it is extremely difficult to determine their fair values.
| ||||
4. | In light of the “Practical Solution on Measurement of Fair Value for Financial Assets” (ASBJ Practical Issues Task Force No. 25), the fair values of floating rate government bonds are based on the present value of future cash flows (the government bond yield is used to discount and estimate future cash flows). Bond yield and yield volatility are the main price parameters. |
11
Table of Contents
3. Write-down of securities
Bonds classified asheld-to-maturity and other securities (excluding securities whose fair values are extremely difficult to determine) 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 (the 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, 2019 and for the nine months ended December 31, 2019 were ¥9,013 million and ¥1,096 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 asheld-to-maturity
Fiscal year ended March 31, 2019
There are no corresponding transactions.
Nine months ended December 31, 2019
There are no corresponding transactions.
2. Other money held in trust (Other than trading and held to maturity)
Millions of yen | ||||||||||||
March 31, 2019 | Acquisition cost | Consolidated balance sheet amount | Net unrealized gains (losses) | |||||||||
Other money held in trust | ¥ | 390 | ¥ | 390 | ¥ | — |
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 | ||||||||||||
December 31, 2019 | Acquisition cost | Quarterly Consolidated balance sheet amount | Net unrealized gains (losses) | |||||||||
Other money held in trust | ¥ | 217 | ¥ | 217 | ¥ | — |
Note: Quarterly consolidated balance sheet amount is measured at fair value based on its market price and others at the end of the period.
12
Table of Contents
(Notes to derivative transactions)
(1) | Interest rate derivatives |
Millions of yen | ||||||||||||
March 31, 2019 | Contract amount | Fair Value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Interest rate futures | ¥ | 59,431,284 | ¥ | 618 | ¥ | 618 | ||||||
Interest rate options | 134,241,530 | 22,079 | 22,079 | |||||||||
Over-the-counter | ||||||||||||
Forward rate agreements | 54,470,715 | (542) | (542) | |||||||||
Interest rate swaps | 444,871,798 | 294,408 | 294,408 | |||||||||
Interest rate swaptions | 12,036,115 | (480) | (480) | |||||||||
Caps | 59,064,895 | (51,326) | (51,326) | |||||||||
Floors | 2,193,601 | 780 | 780 | |||||||||
Other | 9,288,882 | 28,837 | 28,837 | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | 294,374 | ¥ | 294,374 | |||||||
|
|
|
|
|
|
| ||||||||
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 | ||||||||||||
December 31, 2019 | Contract amount | Fair Value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Interest rate futures | ¥ | 62,950,073 | ¥ | 592 | ¥ | 592 | ||||||
Interest rate options | 168,861,337 | 22,059 | 22,059 | |||||||||
Over-the-counter | ||||||||||||
Forward rate agreements | 101,089,083 | 4 | 4 | |||||||||
Interest rate swaps | 462,359,930 | 419,865 | 419,865 | |||||||||
Interest rate swaptions | 14,574,160 | 6,038 | 6,038 | |||||||||
Caps | 65,917,199 | (17,530) | (17,530) | |||||||||
Floors | 3,221,824 | (2,046) | (2,046) | |||||||||
Other | 9,260,627 | 40,092 | 40,092 | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | 469,075 | ¥ | 469,075 | |||||||
|
|
|
|
|
|
| ||||||||
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. |
13
Table of Contents
(2) | Currency derivatives |
Millions of yen | ||||||||||||
March 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Currency futures | ¥ | 3,942 | ¥ | 21 | ¥ | 21 | ||||||
Over-the-counter | ||||||||||||
Currency swaps | 46,383,650 | 82,884 | 76,881 | |||||||||
Currency swaptions | 1,158,840 | 855 | 855 | |||||||||
Forward foreign exchange | 81,510,434 | 24,012 | 24,012 | |||||||||
Currency options | 5,708,189 | 5,294 | 5,294 | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | 113,069 | ¥ | 107,066 | |||||||
|
|
|
|
|
|
| ||
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 above table. |
Millions of yen | ||||||||||||
December 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Currency futures | ¥ | 2,668 | ¥ | 113 | ¥ | 113 | ||||||
Over-the-counter | ||||||||||||
Currency swaps | 54,086,745 | (31,724) | 6,365 | |||||||||
Currency swaptions | 990,645 | 360 | 360 | |||||||||
Forward foreign exchange | 83,668,380 | (47,582) | (47,582) | |||||||||
Currency options | 5,989,829 | 5,008 | 5,008 | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | (73,824) | ¥ | (35,733) | |||||||
|
|
|
|
|
|
| ||
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 above table. |
14
Table of Contents
(3) | Equity derivatives |
Millions of yen | ||||||||||||
Contract amount | Fair value | Valuation gains (losses) | ||||||||||
March 31, 2019 | ||||||||||||
Listed | ||||||||||||
Equity price index futures | ¥ | 931,225 | ¥ | 2,088 | ¥ | 2,088 | ||||||
Equity price index options | 1,259,342 | (27,469) | (27,469) | |||||||||
Over-the-counter | ||||||||||||
Equity options | 721,754 | (1,529) | (1,529) | |||||||||
Equity index forward contracts | 8,094 | 554 | 554 | |||||||||
Equity index swaps | 322,428 | 13,521 | 13,521 | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | (12,835) | ¥ | (12,835) | |||||||
|
|
|
|
|
|
| ||
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 | ||||||||||||
Contract amount | Fair value | Valuation gains (losses) | ||||||||||
December 31, 2019 | ||||||||||||
Listed | ||||||||||||
Equity price index futures | ¥ | 1,382,326 | ¥ | (256) | ¥ | (256) | ||||||
Equity price index options | 1,075,494 | (15,377) | (15,377) | |||||||||
Over-the-counter | ||||||||||||
Equity options | 668,907 | 7,777 | 7,777 | |||||||||
Equity index forward contracts | 6,481 | (26) | (26) | |||||||||
Equity index swaps | 332,890 | 13,808 | 13,808 | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | 5,925 | ¥ | 5,925 | |||||||
|
|
|
|
|
|
| ||
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. |
15
Table of Contents
(4) | Bond derivatives |
Millions of yen | ||||||||||||
March 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Bond futures | ¥ | 3,901,032 | ¥ | (2,233) | ¥ | (2,233) | ||||||
Bond futures options | 491,611 | (541) | (541) | |||||||||
Over-the-counter | ||||||||||||
Bond forward contract | 1,328 | 2 | 2 | |||||||||
Bond options | 1,100,342 | (1,033) | (1,033) | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | (3,805) | ¥ | (3,805) | |||||||
|
|
|
|
|
|
| ||
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 | ||||||||||||
December 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Bond futures | ¥ | 3,213,205 | ¥ | (808) | ¥ | (808) | ||||||
Bond futures options | 27,895 | (7) | (7) | |||||||||
Over-the-counter | ||||||||||||
Bond forward contract | — | — | — | |||||||||
Bond options | 180,347 | 290 | 290 | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | (524) | ¥ | (524) | |||||||
|
|
|
|
|
|
| ||
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
(5) | Commodity derivatives |
Millions of yen | ||||||||||||
March 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Commodity futures | ¥ | 28,823 | ¥ | 30 | ¥ | 30 | ||||||
Over-the-counter | ||||||||||||
Commodity swaps | 183,117 | 1,915 | 1,915 | |||||||||
Commodity options | 13,714 | (388) | (388) | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | 1,556 | ¥ | 1,556 | |||||||
|
|
|
|
|
|
| ||||
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 | ||||||||||||
December 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Listed | ||||||||||||
Commodity futures | ¥ | 35,198 | ¥ | 35 | ¥ | 35 | ||||||
Over-the-counter | ||||||||||||
Commodity swaps | 156,777 | 1,761 | 1,761 | |||||||||
Commodity options | 4,446 | (322) | (322) | |||||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | 1,474 | ¥ | 1,474 | |||||||
|
|
|
|
|
|
| ||||
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. |
(6) | Credit derivative transactions |
Millions of yen | ||||||||||||
March 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Over-the-counter | ||||||||||||
Credit default options | ¥ | 1,504,765 | ¥ | (651) | ¥ | (651) | ||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | (651) | ¥ | (651) | |||||||
|
|
|
|
|
|
| ||
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 | ||||||||||||
December 31, 2019 | Contract amount | Fair value | Valuation gains (losses) | |||||||||
Over-the-counter | ||||||||||||
Credit default options | ¥ | 1,967,988 | ¥ | (2,129) | ¥ | (2,129) | ||||||
|
|
|
|
|
| |||||||
Total | / | ¥ | (2,129) | ¥ | (2,129) | |||||||
|
|
|
|
|
|
| ||
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
(Business combination)
There is no significant business combination to be disclosed.
(Per share data)
Earnings per share, earnings per share (diluted) and each calculation method are as follows:
Nine months ended December 31 | Millions of yen, except per share data | |||||
2018 | 2019 | |||||
(i) Earnings per share | ¥ 456.20 | ¥ 443.60 | ||||
[The calculation method] | ||||||
Profit attributable to owners of parent | 637,882 | 610,830 | ||||
Amount not attributable to common stockholders | — | — | ||||
Profit attributable to owners of parent concerning common stock | 637,882 | 610,830 | ||||
Average number of common stock during the period (in thousands) | 1,398,266 | 1,376,994 | ||||
(ii) Earnings per share (diluted) | ¥ 455.88 | ¥ 443.33 | ||||
[The calculation method] | ||||||
Adjustment for profit attributable to owners of parent | (12) | (9) | ||||
Adjustment of dilutive shares issued by consolidated subsidiaries and equity method affiliates | (12) | (9) | ||||
Increase in the number of common stock (in thousands) | 929 | 807 | ||||
Stock acquisition rights (in thousands) | 929 | 807 |
(Significant Subsequent Events)
There is no significant subsequent event to be disclosed.
(Others)
Interim dividends (dividends from surplus under Article 454, Paragraph 5 of the Companies Act)
The meeting of Board of Directors held on November 12, 2019 resolved interim dividends for the fiscal year ending March 31, 2020 as shown below:
| Total amount of interim dividends | ¥123,252 million | ||||
Interim dividends per share | ¥90 | |||||
Effective date and payment start date | December 3, 2019 |
18