Allowance for Credit Losses on Loans

12 Months Ended

Mar. 31, 2026

5. Allowance for credit losses on loans

Changes in Allowance for credit losses on loans by portfolio segment for the fiscal years ended March 31, 2024, 2025 and 2026 are shown below:


	Domestic
	Corporate			Retail			Sovereign			Banks and other financial institutions			Foreign (2)			Total

	(in millions of yen)
2024
Balance at beginning of fiscal year		505,901			63,541			53			870			130,594			700,959

Provision (credit) for credit losses on loans		83,702			(4,208	)		(9	)		(597	)		(26,061	)		52,827

Charge-offs		(31,936	)		(4,882	)		—			—			(9,505	)		(46,323	)

Recoveries		6,049			1,338			—			—			4,561			11,948

Net charge-offs		(25,887	)		(3,544	)		—			—			(4,945	)		(34,376	)

Others (1)		—			—			—			—			30,660			30,660

Balance at end of fiscal year		563,716			55,790			44			273			130,249			750,071

2025
Balance at beginning of fiscal year		563,716			55,790			44			273			130,249			750,071

Provision (credit) for credit losses on loans		84,198			(732	)		7			105			12,320			95,897

Charge-offs (3)		(18,854	)		(5,546	)		—			—			(23,645	)		(48,044	)

Recoveries		10,130			639			—			—			9,622			20,390

Net charge-offs		(8,724	)		(4,907	)		—			—			(14,023	)		(27,654	)

Others (1)		—			—			—			—			(1,940	)		(1,940	)

Balance at end of fiscal year		639,190			50,150			51			377			126,606			816,374

2026
Balance at beginning of fiscal year		639,190			50,150			51			377			126,606			816,374

Provision (credit) for credit losses on loans		143,988			778			32			168			43,469			188,437

Charge-offs (3)		(249,954	)		(3,570	)		—			—			(19,461	)		(272,985	)

Recoveries		5,108			682			—			—			603			6,393

Net charge-offs		(244,846	)		(2,888	)		—			—			(18,857	)		(266,591	)

Others (1)		301			—			—			—			18,639			18,940

Balance at end of fiscal year		538,634			48,041			83			546			169,856			757,159

Notes:

(1)	Others includes primarily foreign exchange translation.

(2)	The majority of total foreign consist of corporate.

(3)	Charge-offs in creased by ¥224,941 million from the fiscal year ended March 31, 2025 to ¥272,985 million for the fiscal year ended March 31, 2026 due mainly to a downgrade in obligor rating at a domestic corporate borrower.