Leases

12 Months Ended

Mar. 31, 2026

LEASES

As Lessee

The Group leases land and buildings, office equipment, and other tangible and intangible assets from third parties under lease contracts.

Right of use assets

The carrying amount of right of use assets at March 31, 2026 and 2025 consisted of the following:


	Net carrying amount				Depreciation
	At March 31,				For the fiscal year ended March 31,
	2026		2025		2026		2025
	(In millions)
Land and buildings	¥	313,222	¥	335,499	¥	71,912	¥	73,160
Others (1)		49,425		49,336		19,286		23,942

Total	¥	362,647	¥	384,835	¥	91,198	¥	97,102

(1)	Others include mainly office equipment, IT systems and vehicles.

The additions of right of use assets for the fiscal years ended March 31, 2026 and 2025 were ¥69,592 million and ¥73,126 million, respectively. The Group leases mainly land and buildings for its head offices and branches.

Lease liabilities

The maturity analysis of lease liabilities at March 31, 2026 and 2025 were as follows:


	At March 31, 2026			At March 31, 2025
	(In millions)
Not later than one year	¥	80,220		¥	81,548
Later than one year and not later than five years		184,098			187,124
Later than five years		137,378			157,415

Total		401,696			426,087
Less: Future interest charges		(29,761	)		(32,297	)

Lease liabilities (1)	¥	371,935		¥	393,790

(1)	Lease liabilities is included in “Borrowings” in the consolidated statements of financial position. Refer to Note 19 “Borrowings.”

For the fiscal years ended March 31, 2026 and 2025, ¥6,548 million and ¥6,836 million were recognized as interests on lease liabilities, respectively and ¥95,342 million and ¥103,580 million were recognized as total cash outflow for leases, respectively.

As Lessor

The Group leases assets to third parties under finance leases or operating leases, including machinery, equipment, aircraft, vessels and property.

Finance lease receivable

The maturity analysis of the lease payments receivable, showing the undiscounted lease payments to be received at March 31, 2026 and 2025 were as follows:


	At March 31, 2026
	Undiscounted lease payments		Unearned finance income		Discounted lease payments (1)		Unguaranteed residual values (1)
	(In millions)
Not later than one year	¥	63,356	¥	12,576	¥	50,780	¥	288
Later than one year and not later than two years		70,863		8,757		62,106		1,763
Later than two years and not later than three years		31,391		7,393		23,998		3,158
Later than three years and not later than four years		45,514		5,233		40,281		5,649
Later than four years and not later than five years		9,780		4,020		5,760		—
Later than five years		114,264		37,579		76,685		4,075

Total	¥	335,168	¥	75,558	¥	259,610	¥	14,933


	At March 31, 2025
	Undiscounted lease payments		Unearned finance income		Discounted lease payments (1)		Unguaranteed residual values (1)
	(In millions)
Not later than one year	¥	107,149	¥	16,623	¥	90,526	¥	5,919
Later than one year and not later than two years		34,536		7,615		26,921		620
Later than two years and not later than three years		50,980		8,324		42,656		1,744
Later than three years and not later than four years		13,410		5,426		7,984		4,845
Later than four years and not later than five years		53,161		6,115		47,046		4,615
Later than five years		125,863		37,738		88,125		475

Total	¥	385,099	¥	81,841	¥	303,258	¥	18,218

(1)	Discounted lease payments and unguaranteed residual values are included in “Loans and advances” in the consolidated statements of financial position.

Accumulated allowance for net investment in the lease amounting to ¥670 million and ¥795 million were measured under IFRS 9 at March 31, 2026 and 2025, respectively. For the fiscal years ended March 31, 2026 and 2025, ¥12,114 million and ¥13,602 million were recognized as finance income on net investment in the lease, respectively.

Operating lease receivable

The total amounts of the future minimum lease payments receivable under

non-cancellable

operating leases at March 31, 2026 and 2025 were as follows:


	At March 31, 2026		At March 31, 2025
	(In millions)
Not later than one year	¥	211	¥	206
Later than one year and not later than two years		208		208
Later than two years and not later than three years		208		206
Later than three years and not later than four years		67		207
Later than four years and not later than five years		—		67
Later than five years		—		—

Total	¥	694	¥	894

For the fiscal years ended March 31, 2026 and 2025, ¥214 million and ¥215 million were recognized as income from operating leases, respectively.