Derivative Financial Instruments and Hedge Accounting (Tables)

12 Months Ended

Mar. 31, 2026

Derivative Financial Instruments by Type and Purpose of Derivatives

The tables below represent the derivative financial instruments by type and purpose of derivatives at March 31, 2026 and 2025.


	At March 31, 2026
	Trading						Risk Management (1)
	Notional amounts		Assets		Liabilities		Notional amounts		Assets		Liabilities

	(In millions)
Interest rate derivatives	¥	1,973,420,607	¥	4,278,860	¥	5,010,756	¥	82,693,098	¥	726,570	¥	926,053
Futures		98,653,216		38,078		40,166		2,403,589		—		1,594
Listed Options		158,104,302		29,858		17,581		—		—		—
Forwards		48,904,376		14,417		8,297		—		—		—
Swaps		1,355,709,280		3,319,167		3,578,134		80,003,146		725,860		885,290
OTC Options		312,049,433		877,340		1,366,578		286,363		710		39,169
Currency derivatives		315,106,852		4,792,354		3,494,996		20,326,522		166,558		1,925,543
Futures		47,899		—		2,160		—		—		—
Listed Options		—		—		—		—		—		—
Forwards		146,585,047		1,690,794		1,591,981		8,349,254		80,718		311,523
Swaps		148,252,146		2,858,275		1,543,672		11,977,268		85,840		1,614,020
OTC Options		20,221,760		243,285		357,183		—		—		—
Equity derivatives		2,628,133		67,937		45,616		—		—		—
Futures		2,113,484		55,834		31,025		—		—		—
Listed Options		253,138		6,185		10,003		—		—		—
Forwards		26,803		563		796		—		—		—
Swaps		64,321		964		2,259		—		—		—
OTC Options		170,387		4,391		1,533		—		—		—
Commodity derivatives		276,602		34,909		33,753		—		—		—
Futures		126,273		10,815		9,371		—		—		—
Listed Options		—		—		—		—		—		—
Forwards		—		—		—		—		—		—
Swaps		142,213		24,094		23,582		—		—		—
OTC Options		8,116		—		800		—		—		—
Credit derivatives		4,484,549		25,912		35,727		—		—		—

Total derivative financial instruments	¥	2,295,916,743	¥	9,199,972	¥	8,620,848	¥	103,019,620	¥	893,128	¥	2,851,596


	At March 31, 2025
	Trading						Risk Management (1)
	Notional amounts		Assets		Liabilities		Notional amounts		Assets		Liabilities

	(In millions)
Interest rate derivatives	¥	1,647,024,810	¥	4,459,310	¥	4,876,544	¥	82,319,161	¥	610,989	¥	904,337
Futures		89,708,676		21,022		18,155		10,784,613		979		11,420
Listed Options		127,145,993		18,358		22,843		—		—		—
Forwards		39,526,819		258		1,918		—		—		—
Swaps		1,105,571,439		3,624,648		3,542,617		71,326,701		610,010		857,991
OTC Options		285,071,883		795,024		1,291,011		207,847		—		34,926
Currency derivatives		255,610,108		2,888,987		1,827,299		22,432,574		162,839		1,633,786
Futures		12,976		—		94		—		—		—
Listed Options		—		—		—		—		—		—
Forwards		119,480,108		935,964		1,103,594		8,511,080		57,888		153,892
Swaps		123,676,347		1,754,071		479,671		13,921,494		104,951		1,479,894
OTC Options		12,440,677		198,952		243,940		—		—		—
Equity derivatives		2,729,785		161,801		22,092		—		—		—
Futures		1,882,834		28,003		10,533		—		—		—
Listed Options		332,227		5,406		8,462		—		—		—
Forwards		250,439		119,372		180		—		—		—
Swaps		36,576		694		225		—		—		—
OTC Options		227,709		8,326		2,692		—		—		—
Commodity derivatives		175,113		5,652		4,384		—		—		—
Futures		85,473		1,807		1,796		—		—		—
Listed Options		—		—		—		—		—		—
Forwards		—		—		—		—		—		—
Swaps		84,608		3,771		2,525		—		—		—
OTC Options		5,032		74		63		—		—		—
Credit derivatives		3,349,082		23,438		34,816		—		—		—

Total derivative financial instruments	¥	1,908,888,898	¥	7,539,188	¥	6,765,135	¥	104,751,735	¥	773,828	¥	2,538,123

(1)

Derivative financial instruments categorized as “Risk Management” are used for economic hedging, such as managing the exposure to changes in fair value of the loan portfolio, and are identified as hedging instruments under Japanese GAAP. Under IFRS, the Group applies hedge accounting for certain fixed rate debt securities in issue, borrowings, and debt instruments at fair value through other comprehensive income (“FVOCI”) and net investments in foreign operations. Derivative financial instruments designated as hedging instruments are also categorized as “Risk Management.”

Schedule of Items Designated as Hedging Instruments

The tables below represent the amounts related to items designated as hedging instruments at March 31, 2026 and 2025.


	Line item in the consolidated statements of financial position where the hedging instrument is included		At March 31, 2026						For the fiscal year ended March 31, 2026
			Notional amounts (1)		Carrying amounts				Change in value used for calculating hedge ineffectiveness
			Notional amounts (1)		Assets		Liabilities		Change in value used for calculating hedge ineffectiveness

			(In millions)
Interest rate risk
Interest rate swaps		Derivative financial instruments	¥	10,792,370	¥	102,943	¥	381,753	¥	(144,319	)
Interest rate options		Derivative financial instruments		222,261		—		39,169		(6,717	)

(1)

At March 31, 2026, the notional amount of interest rate swaps with remaining maturities of more than 12 months that are designated hedging instruments against interest rate risk is ¥9,155,639 million out of ¥10,792,370 million in total, and that of interest rate options with remaining maturities of more than 12 months that are designated hedging instruments against interest rate risk is ¥222,261 million, equal to the total notional amount.


	Line item in the consolidated statements of financial position where the hedging instrument is included		At March 31, 2025						For the fiscal year ended March 31, 2025
			Notional amounts (1)		Carrying amounts				Change in value used for calculating hedge ineffectiveness
			Notional amounts (1)		Assets		Liabilities		Change in value used for calculating hedge ineffectiveness

			(In millions)
Interest rate risk
Interest rate swaps		Derivative financial instruments	¥	9,345,733	¥	121,920	¥	420,524	¥	(35,197	)
Interest rate options		Derivative financial instruments		207,847		—		34,926		(3,758	)

(1)

At March 31, 2025, the notional amount of interest rate swaps with remaining maturities of more than 12 months that are designated hedging instruments against interest rate risk is ¥8,247,877 million out of ¥9,345,733 million in total, and that of interest rate options with remaining maturities of more than 12 months that are designated hedging instruments against interest rate risk is ¥207,847 million, equal to the total notional amount.

The amounts related to items designated as hedged items at March 31, 2026 and 2025 were as follows:

Line item in the consolidated
statements of financial
position where the hedged
item is included

At March 31, 2026

For the fiscal year
ended March 31, 2026

Carrying amounts

Change in value used
for calculating hedge
ineffectiveness

(In millions)

Interest rate risk

Debt instruments at FVOCI

Investment securities

888,319

29,165

Debt securities in issue

9,530,328

121,570

Borrowings

122,354

4,158


	Line item in the consolidated statements of financial position where the hedged item is included		At March 31, 2025		For the fiscal year ended March 31, 2025
			Carrying amounts		Change in value used for calculating hedge ineffectiveness

			(In millions)
Interest rate risk
Debt instruments at FVOCI		Investment securities	¥	810,009	¥	43,785
Debt securities in issue		Debt securities in issue		8,195,943		(6,919	)
Borrowings		Borrowings		120,304		1,492

Schedule of Hedges of Net Investments in Foreign Operations

The tables below represents the amounts related to items designated as hedging instruments at March 31, 2026 and 2025.


	Line item in the consolidated statements of financial position where the hedging instrument is included	At March 31, 2026						For the fiscal year ended March 31, 2026
		Nominal amounts		Carrying amounts				Change in value used for calculating hedge ineffectiveness
		Nominal amounts		Assets		Liabilities		Change in value used for calculating hedge ineffectiveness

		(In millions)
Foreign exchange forward contracts	Derivative financial instruments	¥	3,835,799	¥	37,235	¥	297,585	¥	(268,646	)
Foreign currency denominated financial liabilities	Debt securities in issue, Borrowings, Deposits		227,322		—		227,322		(14,742	)


	Line item in the consolidated statements of financial position where the hedging instrument is included	At March 31, 2025						For the fiscal year ended March 31, 2025
		Nominal amounts		Carrying amounts				Change in value used for calculating hedge ineffectiveness
		Nominal amounts		Assets		Liabilities		Change in value used for calculating hedge ineffectiveness

		(In millions)
Foreign exchange forward contracts	Derivative financial instruments	¥	3,626,636	¥	34,176	¥	110,254	¥	(14,745	)
Foreign currency denominated financial liabilities	Debt securities in issue, Borrowings, Deposits		212,580		—		212,580		2,558

Schedule of Items Designated as Hedging Items

The amounts related to items designated as hedged items for the fiscal years ended March 31, 2026 and 2025 were as follows:


	For the fiscal year ended March 31, 2026			At March 31, 2026
	Change in value used for calculating hedge ineffectiveness			Translating foreign operations reserve

	(In millions)
USD foreign operations	¥	92,106		¥	469,405
EUR foreign operations		174,911			475,673
THB foreign operations		45,372			149,753
Other foreign operations (1)		(29,001	)		74,636

Total	¥	283,388		¥	1,169,467


	For the fiscal year ended March 31, 2025			At March 31, 2025
	Change in value used for calculating hedge ineffectiveness			Translating foreign operations reserve

	(In millions)
USD foreign operations	¥	(18,370	)	¥	377,299
EUR foreign operations		(9,731	)		300,761
THB foreign operations		25,100			104,381
Other foreign operations		15,188			103,639

Total	¥	12,187		¥	886,080

(1)

The decrease in Other foreign operations was primarily due to the sale of a portion of the Group’s shares in The Bank of East Asia, Limited during the fiscal year ended March 31, 2026. As a result of the sale, The Bank of East Asia, Limited ceased to be an equity-method associate and was no longer included in the HKD-denominated foreign operations designated as hedged items for net investment hedges.

Notional Amounts and Fair Value of Credit Derivatives by Purpose of Transactions

The tables below provide the notional amounts and the fair value of credit derivatives by purpose of transactions at March 31, 2026 and 2025.


	At March 31, 2026
	Protection purchased						Protection sold
	Notional amounts		Assets		Liabilities		Notional amounts		Assets		Liabilities

	(In millions)
Managing the Group’s credit risk portfolio	¥	2,539,207	¥	3,886	¥	30,188	¥	1,790,455	¥	21,211	¥	3,211
Trading purposes		82,146		—		2,060		28,542		646		—
Facilitating client transactions		44,200		169		268		—		—		—

Total	¥	2,665,553	¥	4,055	¥	32,516	¥	1,818,997	¥	21,857	¥	3,211


	At March 31, 2025
	Protection purchased						Protection sold
	Notional amounts		Assets		Liabilities		Notional amounts		Assets		Liabilities

	(In millions)
Managing the Group’s credit risk portfolio	¥	1,816,129	¥	1,382	¥	29,453	¥	1,305,660	¥	19,620	¥	2,192
Trading purposes		89,647		214		2,853		98,676		2,063		12
Facilitating client transactions		38,000		157		306		970		2		—

Total	¥	1,943,776	¥	1,753	¥	32,612	¥	1,405,306	¥	21,685	¥	2,204

Notional Amounts and Fair Value of Credit Derivative Portfolio by Type of Counterparty

The following table summarizes the notional amounts of the Group’s credit derivative portfolio by type of counterparty at March 31, 2026 and 2025.


	At March 31, 2026				At March 31, 2025
	Protection purchased		Protection sold		Protection purchased		Protection sold

	(In millions)
Banks and broker-dealers	¥	2,665,553	¥	1,818,997	¥	1,943,776	¥	1,405,306

Total	¥	2,665,553	¥	1,818,997	¥	1,943,776	¥	1,405,306