XML 28 R18.htm IDEA: XBRL DOCUMENT v3.25.2
Credit Quality of Financial Assets and the Allowance for Credit Losses
 12 Months Ended
Mar. 31, 2025
Credit Loss [Abstract]  
Credit Quality of Financial Assets and the Allowance for Credit Losses
8. Credit Quality of Financial Assets and the Allowance for Credit Losses
The Company and its subsidiaries provide the following information disaggregated by portfolio segment and class of financial assets.
 
  •  
Allowance for credit losses
 
  •  
Credit quality of financial assets
Credit quality indicators
Past-due
financing receivables
Non-accrual
 
  •  
Information about modifications of financing receivables made to debtors experiencing financial difficulty
A portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. The Company and its subsidiaries classify our portfolio segments by instruments of loans, net investment in leases and other financial assets measured at amortized cost. Classes of financial assets are determined based on the initial measurement attribute, risk characteristics of the financing receivables and the method for monitoring and assessing obligors’ credit risk and are defined as the level of detail necessary for a financial statement user to understand the risks inherent in the financial assets. Classes of financial assets generally are a disaggregation of a portfolio segment, and the Company and its subsidiaries disaggregate our portfolio segments into classes by regions, instruments or industries of our debtors.
 
The following table provides information about the allowance for credit losses for installment loans, net investment in leases and other financial assets measured at amortized cost for fiscal 2023, 2024 and 2025:
 
   
Fiscal Year ended March 31, 2023
  
   
Millions of yen
  
   
Beginning
balance
    
Provision
(Reversal)*3
    
Allowance of
purchased
loans

during the
reporting
period
    
Charge-
offs*4
    
Recoveries
    
Other*5
    
Ending
balance
    
Collective
(pool)
assessment
    
Individual
assessment
  
Allowance for credit losses:
                                                                                                                     
Installment loans to consumer borrowers:
                  
Real estate loans
                  
Japan
   ¥ 5,716     ¥ (1,437 )    ¥ 0     ¥ (215 )    ¥ 27     ¥ 1     ¥ 4,092     ¥ 3,644     ¥ 448  
Overseas
     455       (19 )      0       0       1       9       446       446       0  
Card loans
                  
Japan
     10,019       (421 )      0       (584 )      8       0       9,022       8,329       693  
Other
                  
Japan
     5,204       4,672       0       (2,124 )      8       (1 )      7,759       5,337       2,422  
Overseas
     1,105       1,265       0       (508 )      0       27       1,889       1,467       422  
Installment loans to corporate borrowers:
                  
Non-recourse
loans
                  
Japan
     81       173       0       0       0       (1 )      253       253       0  
The Americas
     2,691       (1,186 )      0       0       0       (11 )      1,494       560       934  
Other than
non-recourse
loans
                  
Real estate companies
                  
Japan
     617       131       0       0       28       1       777       663       114  
Overseas
     735       264       0       (29 )      0       37       1,007       1,007       0  
Commercial, industrial and other companies
                  
Japan
     1,337       102       0       (358 )      71       0       1,152       477       675  
Overseas
     18,296       7,164       0       (8,212 )      329       1,555       19,132       16,455       2,677  
Loans to Equity method investees
     1,957       361       0       (1,842 )      0       174       650       281       369  
Purchased loans*1
     1,575       (261 )      6,901       (7,142 )      64       11       1,148       541       607  
Net investment in leases:
     16,303       1,678       0       (2,637 )      27       348       15,719       12,032       3,687  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
     66,091       12,486       6,901       (23,651 )      563       2,150       64,540       51,492       13,048  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost*2
     5,324       194       0       (4,721 )      30       6       833       267       566  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 71,415     ¥ 12,680     ¥ 6,901     ¥ (28,372 )    ¥ 593     ¥ 2,156     ¥ 65,373     ¥ 51,759     ¥ 13,614  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
 
   
Fiscal Year ended March 31, 2024
  
   
Millions of yen
  
   
Beginning
balance
    
Provision
(Reversal)*3
    
Allowance of
purchased
loans

during the
reporting
period
    
Charge-
offs*4
    
Recoveries
    
Other*5
    
Ending
balance
    
Collective
(pool)
assessment
    
Individual
assessment
  
Allowance for credit losses:
                                                                                                                     
Installment loans to consumer borrowers:
                  
Real estate loans
                  
Japan
   ¥ 4,092     ¥ (712 )    ¥ 0     ¥ (218 )    ¥ 151     ¥ (110 )    ¥ 3,203     ¥ 2,893     ¥ 310  
Overseas
     446       94       0       (6 )      1       46       581       526       55  
Card loans
                  
Japan
     9,022       101       0       (918 )      10       (8,203 )      12       12       0  
Other
                  
Japan
     7,759       5,313       0       (3,856 )      7       (9,132 )      91       6       85  
Overseas
     1,889       3,166       0       (2,736 )      476       265       3,060       1,762       1,298  
Installment loans to corporate borrowers:
                  
Non-recourse
loans
                  
Japan
     253       176       0       0       0       0       429       429       0  
The Americas
     1,494       74       0       (55 )      0       205       1,718       660       1,058  
Other than
non-recourse
loans
                  
Real estate companies
                  
Japan
     777       176       0       (4 )      26       0       975       889       86  
Overseas
     1,007       430       0       0       0       112       1,549       1,045       504  
Commercial, industrial and other companies
                  
Japan
     1,152       (44 )      0       (281 )      9       21       857       722       135  
Overseas
     19,132       8,702       0       (4,762 )      176       2,576       25,824       16,061       9,763  
Loans to Equity method investees
     650       99       0       0       0       129       878       422       456  
Purchased loans*1
     1,148       13       47,676       (47,722 )      2       16       1,133       548       585  
Net investment in leases:
     15,719       3,064       0       (2,635 )      26       606       16,780       10,866       5,914  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
     64,540       20,652       47,676       (63,193 )      884       (13,469 )      57,090       36,841       20,249  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost*2
     833       311       0       (280 )      9       147       1,020       321       699  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 65,373     ¥ 20,963     ¥ 47,676     ¥ (63,473 )    ¥ 893     ¥ (13,322 )    ¥ 58,110     ¥ 37,162     ¥ 20,948  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
 
   
Fiscal Year ended March 31, 2025
  
   
Millions of yen
  
   
Beginning
balance
    
Provision
(Reversal)*3
    
Allowance of
purchased
loans

during the
reporting
period
    
Charge-
offs*4
    
Recoveries
    
Other*5
    
Ending
balance
    
Collective
(pool)
assessment
    
Individual
assessment
  
Allowance for credit losses:
                                                                                                                     
Installment loans to consumer borrowers:
                  
Real estate loans
                  
Japan
   ¥ 3,203     ¥ (317 )    ¥ 0     ¥ (62 )    ¥ 66     ¥ 1     ¥ 2,891     ¥ 2,609     ¥ 282  
Overseas
     581       1,202       0       0       1       (105 )      1,679       505       1,174  
Card loans
                  
Japan
     12       13       0       0       11       0       36       36       0  
Other
                  
Japan
     91       (8 )      0       0       7       0       90       6       84  
Overseas
     3,060       2,996       0       (3,237 )      453       (224 )      3,048       1,355       1,693  
Installment loans to corporate borrowers:
                  
Non-recourse
loans
                  
Japan
     429       33       0       0       0       0       462       462       0  
The Americas
     1,718       1,066       0       (150 )      0       (41 )      2,593       1,548       1,045  
Other than
non-recourse
loans
                  
Real estate companies
                  
Japan
     975       (14 )      0       (78 )      26       (1 )      908       877       31  
Overseas
     1,549       682       0       0       0       (185 )      2,046       764       1,282  
Commercial, industrial and other companies
                  
Japan
     857       359       0       (146 )      7       1       1,078       586       492  
Overseas
     25,824       1,094       0       (4,048 )      34       (2,841 )      20,063       11,919       8,144  
Loans to Equity method investees
     878       954       0       (255 )      0       (65 )      1,512       167       1,345  
Purchased loans*1
     1,133       80       7,507       (7,547 )      2       167       1,342       521       821  
Net investment in leases:
     16,780       4,934       0       (3,505 )      91       (178 )      18,122       11,236       6,886  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
     57,090       13,074       7,507       (19,028 )      698       (3,471 )      55,870       32,591       23,279  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost*2
     1,020       179       0       (276 )      14       (38 )      899       299       600  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 58,110     ¥ 13,253     ¥ 7,507     ¥ (19,304 )    ¥ 712     ¥ (3,509 )    ¥ 56,769     ¥ 32,890     ¥ 23,879  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Notes:
 
Loans held for sale and policy loan receivables of an insurance entity are not in the scope of allowance for credit losses.
 
*1
Purchased loans represent loans with evidence of deterioration of credit quality since origination and for which it is probable at acquisition that collection of all contractually required payments from the debtors is unlikely.
 
*2
The allowance for other financial assets measured at amortized cost includes the allowance for credit losses on financing receivables, such as accounts receivable. Other financial assets measured at amortized cost are mainly “Trade notes, accounts and other receivables” on the consolidated balance sheets.
*3
“Provision for credit losses” in the consolidated statements of income amounted to provisions of ¥8,117 million, ¥20,968 million and ¥18,723 million for fiscal 2023, 2024 and 2025 respectively. The reconciliation between the above table and the amounts reported on the consolidated statements of income in fiscal 2023, 2024 and 2025 are as follows:
 
    
Millions of yen
  
    
Fiscal Year
ended March 31,
2023
    
Fiscal Year
ended March 31,
2024
    
Fiscal Year
ended March 31,
2025
  
    
Provision for
credit losses
    
Provision for
credit losses
    
Provision for
credit losses
  
Net investment in leases
    ¥ 1,678     ¥ 3,064     ¥ 4,934  
Installment loans
      10,808       17,588       8,140  
  
 
 
    
 
 
    
 
 
  
Subtotal in the above table
      12,486       20,652       13,074  
  
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost
      194       311       179  
  
 
 
    
 
 
    
 
 
  
Total in the above table
      12,680       20,963       13,253  
  
 
 
    
 
 
    
 
 
  
Off-balance
sheet credit exposures *3(a)
      (4,542 )      (440 )      5,297  
Available-for-sale
debt securities *3(b)
      (21 )      445       173  
  
 
 
    
 
 
    
 
 
  
Amount reported on the consolidated financial statements
    ¥ 8,117     ¥ 20,968     ¥ 18,723  
  
 
 
    
 
 
    
 
 
  
 
  *3(a)
The allowance for
off-balance
sheet credit exposure were ¥17,843 million, ¥5,116 million and ¥9,766 million as of March 31, 2023, 2024 and 2025, respectively, and the amounts are recorded in “Other liabilities” on the consolidated balance sheets. For further information, see Note 31 “Commitments, Guarantees and Contingent Liabilities.”
  *3(b)
The allowance for
available-for-sale
debt securities were ¥144 million ¥634 million and ¥670 million as of March 31, 2023, 2024 and 2025, respectively, and the amounts are recorded as a reduction in “Investments in securities” on the consolidated balance sheets. For further information, see Note 9 “Investment in Securities.”
*4
Included in
Charge-off
in write-offs of purchased loans were ¥6,901 million, ¥47,676 million and ¥7,507 million during fiscal 2023, 2024 and 2025.
*5
“Other” mainly includes foreign currency translation adjustments and increases or decreases in allowance due to consolidation or deconsolidation of subsidiaries.
The following table provides information about purchased loans which were acquired for fiscal 2023, 2024 and 2025:
 
    
Millions of yen
  
    
Fiscal Year ended

March 31, 2023
     
Fiscal Year ended

March 31, 2024
     
Fiscal Year ended

March 31, 2025
  
Purchase price
    ¥ 2,444      ¥ 12,271      ¥ 5,264  
Allowance for credit losses at acquisition date
      6,901        47,676        7,507  
Discount or premium attributable to other factors
      261        1,188        1,332  
  
 
 
     
 
 
     
 
 
  
Par value
    ¥ 9,606      ¥ 61,135      ¥ 14,103  
  
 
 
     
 
 
     
 
 
  
 
The Company
 
and its subsidiaries estimate an allowance for credit losses for all credit losses expected to occur in future over the remaining life of financial assets, and recognize the allowance adequately based on management judgement. In developing the allowance for credit losses, the Company and its subsidiaries consider, among other things, the following factors in collective assessment and individual assessment by each portfolio:
 
  •  
business characteristics and financial conditions of obligors;
 
  •  
prior
charge-off
experience;
 
  •  
current delinquencies and delinquency trends;
 
  •  
value of underlying collateral and guarantees; and
 
  •  
current economic and business conditions and expected outlook in future.
The Company and its subsidiaries manage credit risk using various indicators specific to the region, industry, and types of assets, in accordance with the group risk management policy. For credit transactions, the basic group policy is to obtain sufficient collateral and guarantees, and to diversify industries and borrowers, and the Company and its subsidiaries comprehensively evaluate and monitor the financial condition and cash flows of borrowers, underlying collateral and guarantees, and profitability. The Company and its subsidiaries also manage exposure to potentially high-risk markets by establishing appropriate credit limits through portfolio analysis.
Due to the diversity of assets and risk indicators held by the Company and its subsidiaries, the Company and its subsidiaries monitor the credit quality indicators as performing and
non-performing
assets as indicators that are common across all classes. The category of
non-performing
assets includes financing receivables for debtors who have filed for insolvency proceedings, whose bank transactions are suspended, whose bills are dishonored, whose businesses have deteriorated, whose repayment is
past-due
90 days or more, financing receivables modified to debtors experiencing financial difficulty, and performing assets include all other financing receivables. Regarding purchased loans, they are classified as
non-performing
assets when it is probable that the acquisition cost of purchased loans cannot be collected, while all the other purchased loans are included in the category of performing assets.
When certain performing financial assets mainly have similar risk characteristics to other financial assets, the performing financial assets are collectively evaluated as a pool. On the contrary, when financial assets do not have similar risk characteristics to other financial assets, the financial assets are evaluated individually.
Loans to consumer borrowers
Loans to consumer borrowers mainly consist of real estate loans and card loans.
The credit quality of real estate loans is affected by the cash flows derived from the property and its collateral value.
The credit quality of card loans is affected by the repayment ability of customers such as customer credit standing or payment history.
The Company and its subsidiaries use these factors to estimate the allowance for credit losses because they are reflected in the probability of default and loss given default in each portfolio.
 
 
Loans to corporate borrowers
Loans to corporate borrowers are classified into
non-recourse
loans and loans other than
non-recourse
loans.
The credit quality of
non-recourse
loans for which cash flows from real estate are the source of repayment depends mainly on the real estate collateral value.
Loans other than
non-recourse
loans are classified into either real estate companies or commercial, industrial and other companies, each of which are further divided into Japan and overseas.
The credit quality of real estate companies is affected by mainly Japanese and Americas real estate markets and trends.
The credit quality of commercial, industrial and other companies, which consist of various industries, is affected mainly by broader financial and economic conditions and trends in Japan, the Americas and Asian countries.
The allowance for credit losses for loans to corporate borrowers is estimated by considering, among others, debtors’ situation, as well as economic conditions and trends in its industries, the value of underlying collateral and guarantees, and probability of default and loss given default.
Loans to equity method investees
Equity method investees are diversified in various industries and countries. The credit quality of loans to equity method investees is affected mainly by broader financial and economic conditions and trends in Japan, the Americas and Asian countries.
The allowance for credit losses for loans to equity method investees is estimated by considering, among others, debtors’ situation, as well as economic conditions and trends in its industries, the value of underlying collateral and guarantees, and probability of default and loss given default.
Net investment in leases
Net investment in leases consists of leases of various equipment types, including office equipment, industrial machinery, transportation equipment and real estate properties. The allowance for credit losses for net investment in leases is estimated based on the value of the underlying leased assets, debtors’ situation, economic conditions and trends in its industries, and probability of default and loss given default.
In common with portfolio segments, the forecasted future economic indicators correlated with the prior
charge-off
experience are reflected to the estimate of the allowance for credit losses. Economic indicators correlated with prior
charge-off
experience are determined over the reasonable and supportable forecasted period. Economic indicators include GDP growth rates, consumer price indices, unemployment rates, and government bond interest rates. It also considers forward-looking scenarios of how the selected economic indicators will change in the future. The Company and its subsidiaries use the latest economic forecasts available from the economic reports published by governments and central banks, as well as from third-party information providers as economic indicators.
On the other hand, for periods beyond which the Company and its subsidiaries are able to make or obtain reasonable and supportable forecasts of future economic indicators of the entire life of the financial asset, expected credit losses are estimated for the remaining life mainly using an appropriate reversion approach, mainly immediate reversion to historical credit loss information.
 
 
There have been no significant changes during fiscal 2025 to methodologies and economic indicators used to estimate the allowance for credit losses.
When
non-performing
financial assets with deteriorated credit quality have similar risk characteristics to other financial assets, the allowance for credit losses is collectively evaluated based on mainly loss given default. On the other hand, if the
non-performing
financial assets do not have similar risk characteristics to other financial assets, the allowance for credit losses is individually evaluated.
In the individual assessment the allowance for credit losses is estimated individually based on the present value of expected future cash flows, the observable market price or the fair value of the collateral securing the financing receivables if the financing receivables are collateral-dependent.
The collateral-dependent financing receivables are defined as the finance receivables, which a debtor would be in financial difficulty and the collection significantly depend on the collateral. These financing receivables are mainly
non-recourse
loans and purchased loans for which cash flows from underlying real estate is the source of repayment.
For
non-recourse
loans, their collection depends on the real estate collateral value, which may decline as a result of a decrease in liquidity of the real estate market, a rise in vacancy rate of rental properties, a fall in rents and other factors.
For purchased loans, their collection may decrease due to a decline in the real estate collateral value and debtors’ creditworthiness. Thus, the changes in these risks affect the amount of the allowance for credit losses.
In common with all portfolio segments, the Company and its subsidiaries charge off doubtful receivables when the likelihood of any future collection is believed to be minimal, mainly based upon an evaluation of the relevant debtors’ creditworthiness and the liquidation status of collateral.

The following table provides information about the origination years of financial assets as of March 31, 2024 and 2025 and the gross write-offs, corresponding to each class of financial assets by origination year, recorded during fiscal 2024 and 2025. Card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year are excluded from the table.
 
       
March 31, 2024
  
       
Millions of yen
  
Portfolio segment
      
Origination year (years ended March 31)
        
Class
                                              
   
Credit Quality
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Total
  
Consumer borrowers:
              
  Performing   ¥   245,106     ¥   200,373     ¥ 165,337     ¥ 248,395     ¥ 334,364     ¥ 788,888     ¥ 1,982,463  
 
Non-Performing
     1,139       1,224       607       292       500       11,871     ¥ 15,633  
  Gross write-offs     1,268       3,500       988       228       147       685     ¥ 6,816  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Real estate loans
              
  Performing     219,407       182,697       161,632       247,905       334,009       788,635     ¥ 1,934,285  
 
Non-Performing
     109       22       508       281       486       11,770     ¥ 13,176  
  Gross write-offs     0       1       0       2       5       216     ¥ 224  
Other
                
  Performing     25,699       17,676       3,705       490       355       253     ¥ 48,178  
 
Non-Performing
     1,030       1,202       99       11       14       101     ¥ 2,457  
  Gross write-offs     1,268       3,499       988       226       142       469     ¥ 6,592  
 
 
 
 
 
 
March 31, 2024
 
 
 
 
 
Millions of yen
 
Portfolio segment
 
 
 
Origination year (years ended March 31)
 
 
 
 
Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Quality
 
2024
 
 
2023
 
 
2022
 
 
2021
 
 
2020
 
 
Prior
 
 
Total
 
Corporate borrowers:
 
 
 
 
 
 
 
  Performing     484,932       236,795       276,776       96,684       121,132       183,404     ¥ 1,399,723  
 
Non-Performing
     5,144       3,346       26,661       5,255       6,705       23,023     ¥ 70,134  
  Gross write-offs     115       102       1,005       215       1,397       2,268     ¥ 5,102  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Non-recourse
loans
              
Japan
                
  Performing     97,099       22,621       10,572       6,713       1,266       7,015     ¥ 145,286  
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
The Americas
              
  Performing     11,804       9,077       1,742       151       16,862       7,512     ¥ 47,148  
 
Non-Performing
     0       68       0       0       0       3,047     ¥ 3,115  
  Gross write-offs     0       0       0       0       0       55     ¥ 55  
Other than
non-recourse
loans
              
Real estate companies in Japan
              
  Performing       143,553         57,185         28,355         22,836         22,907         58,195     ¥   333,031  
 
Non-Performing
     37       0       0       9       656       773     ¥ 1,475  
  Gross write-offs     0       0       0       0       4       0     ¥ 4  
Real estate companies in overseas
              
  Performing     4,334       16,493       9,972       2,764       3,352       4,663     ¥ 41,578  
 
Non-Performing
     489       581       4,444       515       2,205       9,947     ¥ 18,181  
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
Commercial, industrial and other companies in Japan
                                                        
    Performing     95,090       29,538       18,606       11,920       10,619       14,566     ¥ 180,339  
   
Non-Performing
     2       80       31       93       38       313     ¥ 557  
    Gross write-offs     0       76       54       29       22       100     ¥ 281  
Commercial, industrial and other companies in overseas
                                                  
 
 
 
    Performing     133,052       101,881       207,529       52,300       66,126       91,453     ¥ 652,341  
   
Non-Performing
     4,616       2,617       22,186       4,638       3,806       8,943     ¥ 46,806  
    Gross write-offs     115       26       951       186       1,371       2,113     ¥ 4,762  
Loans to Equity method investees:
 
                                          
 
 
 
    Performing     133,587       27,874       72,407       2,091       58       13,983     ¥ 250,000  
   
Non-Performing
     0       230       327       0       0       1,372     ¥ 1,929  
 
 
 
 
 
 
March 31, 2024
 
 
 
 
 
Millions of yen
 
Portfolio segment
 
 
 
Origination year (years ended March 31)
 
 
 
 
Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Quality
 
2024
 
 
2023
 
 
2022
 
 
2021
 
 
2020
 
 
Prior
 
 
Total
 
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Purchased loans:
              
  Performing     145       16       590       227       4,670       13,445     ¥ 19,093  
 
Non-Performing
     0       0       0       0       0       880     ¥ 880  
  Gross write-offs     1,163       409       229       44       206       45,671     ¥ 47,722  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net investment in leases:
              
  Performing     475,594       291,724       159,885       81,835       56,625       68,555     ¥ 1,134,218  
 
Non-Performing
     4,406       4,891       2,992       1,529       1,368       5,619     ¥ 20,805  
  Gross write-offs     1       190       839       422       298       885     ¥ 2,635  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Japan
                
  Performing     199,864       139,133       100,905       67,932       46,911       64,436     ¥ 619,181  
 
Non-Performing
     213       585       886       776       657       1,796     ¥ 4,913  
  Gross write-offs     0       26       101       129       158       583     ¥ 997  
Overseas
                
  Performing     275,730       152,591       58,980       13,903       9,714       4,119     ¥ 515,037  
 
Non-Performing
     4,193       4,306       2,106       753       711       3,823     ¥ 15,892  
  Gross write-offs     1       164       738       293       140       302     ¥ 1,638  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
(excluding revolving repayment card loans)
              
  Performing   ¥ 1,339,364     ¥ 756,782     ¥ 674,995     ¥ 429,232     ¥ 516,849     ¥ 1,068,275     ¥ 4,785,497  
 
Non-Performing
     10,689       9,691       30,587       7,076       8,573       42,765     ¥ 109,381  
  Gross write-offs     2,547       4,201       3,061       909       2,048       49,509     ¥ 62,275  
 
 
 
 
March 31, 2025
 
 
 
 
 
Millions of yen
 
Portfolio segment
 
 
 
Origination year (years ended March 31)
 
 
 
 
Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Quality
 
2025
 
 
2024
 
 
2023
 
 
2022
 
 
2021
 
 
Prior
 
 
Total
 
Consumer borrowers:
 
 
 
 
 
 
 
  Performing   ¥ 358,952     ¥ 154,694     ¥ 159,847     ¥ 143,281     ¥ 227,594     ¥ 936,220     ¥ 1,980,588  
 
Non-Performing
     586       1,421       3,101       2,086       668       11,576     ¥ 19,438  
  Gross write-offs     206       1,773       1,136       106       8       70     ¥ 3,299  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Real estate loans
              
  Performing     339,308       142,337       152,451       142,224       227,484       935,996     ¥ 1,939,800  
 
Non-Performing
     224       472       2,110       2,057       666       11,487     ¥ 17,016  
  Gross write-offs     0       0       0       0       0       62     ¥ 62  
Other
                
  Performing     19,644       12,357       7,396       1,057       110       224     ¥ 40,788  
 
Non-Performing
     362       949       991       29       2       89     ¥ 2,422  
  Gross write-offs     206       1,773       1,136       106       8       8     ¥ 3,237  
Corporate borrowers:
              
  Performing     865,495       246,134       133,623       154,928       42,744       175,757     ¥ 1,618,681  
 
Non-Performing
     2,389       15,254       9,656       39,845       11,919       40,392     ¥ 119,455  
 
 
 
 
 
 
March 31, 2025
 
 
 
 
 
Millions of yen
 
Portfolio segment
 
 
 
Origination year (years ended March 31)
 
 
 
 
Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Quality
 
2025
 
 
2024
 
 
2023
 
 
2022
 
 
2021
 
 
Prior
 
 
Total
 
  Gross write-offs     65       181       73       2,485       24       1,594     ¥ 4,422  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Non-recourse
loans
              
Japan
                
  Performing     225,394       52,292       10,487       6,932       0       6,372     ¥ 301,477  
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
The Americas
              
  Performing     44,762       20,079       7,540       886       135       9,491     ¥ 82,893  
 
Non-Performing
     0       0       67       0       0       3,764     ¥ 3,831  
  Gross write-offs     0       0       0       0       0       150     ¥ 150  
Other than non-recourse
loans
              
Real estate companies in Japan
              
  Performing     205,004       67,092       33,558       23,295       19,072       67,088     ¥ 415,109  
 
Non-Performing
     0       0       0       0       8       549     ¥ 557  
  Gross write-offs     0       0       0       0       0       78     ¥ 78  
Real estate companies in overseas
              
  Performing     57,678       2,458       8,833       2,828       504       6,469     ¥ 78,770  
 
Non-Performing
     104       6,964       6,586       8,013       4,326       26,279     ¥ 52,272  
  Gross write-offs     0       0       0       0       0       0     ¥ 0  
Commercial, industrial and other companies in Japan
              
    Performing     131,439       38,390       20,382       10,761       6,412       17,740     ¥ 225,124  
   
Non-Performing
     415       58       130       11       76       86     ¥ 776  
    Gross write-offs     0       0       0       0       6       140     ¥ 146  
Commercial, industrial and other companies in overseas
                                                  
 
 
 
    Performing     201,218       65,823       52,823       110,226       16,621       68,597     ¥ 515,308  
   
Non-Performing
     1,870       8,232       2,873       31,821       7,509       9,714     ¥ 62,019  
    Gross write-offs     65       181       73       2,485       18       1,226     ¥ 4,048  
Loans to Equity method investees:
                                                        
    Performing     515       111,724       2,028       0       1,583       14,858     ¥ 130,708  
   
Non-Performing
     0       0       0       0       0       1,345     ¥ 1,345  
    Gross write-offs     0       0       55       39       0       161     ¥ 255  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchased loans:
                                                  
 
 
  
    Performing     0       52       14       476       86       19,497     ¥ 20,125  
   
Non-Performing
     0       0       0       31       0       1,233     ¥ 1,264  
 
 
 
 
 
 
March 31, 2025
 
 
 
 
 
Millions of yen
 
Portfolio segment
 
 
 
Origination year (years ended March 31)
 
 
 
 
Class
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Quality
 
2025
 
 
2024
 
 
2023
 
 
2022
 
 
2021
 
 
Prior
 
 
Total
 
  Gross write-offs     0       0       0       57       255       7,235     ¥ 7,547  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net investment in leases:
              
  Performing     448,045       316,681       179,111       89,639       47,256       64,828     ¥ 1,145,560  
 
Non-Performing
     2,381       5,398       4,893       1,879       836       6,433     ¥ 21,820  
  Gross write-offs     0       456       1,029       538       353       1,129     ¥ 3,505  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Japan
                
  Performing     199,069       145,491       101,351       67,720       40,680       60,287     ¥ 614,598  
 
Non-Performing
     160       628       763       808       500       1,506     ¥ 4,365  
  Gross write-offs     0       34       135       254       256       627     ¥ 1,306  
Overseas
                
  Performing     248,976       171,190       77,760       21,919       6,576       4,541     ¥ 530,962  
 
Non-Performing
     2,221       4,770       4,130       1,071       336       4,927     ¥ 17,455  
  Gross write-offs     0       422       894       284       97       502     ¥ 2,199  
   
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
(excluding revolving repayment card loans)
              
  Performing   ¥ 1,673,007     ¥ 829,285     ¥ 474,623     ¥ 388,324     ¥ 319,263     ¥ 1,211,160     ¥ 4,895,662  
 
Non-Performing
     5,356       22,073       17,650       43,841       13,423       60,979     ¥ 163,322  
  Gross write-offs     271       2,410       2,293       3,225       640       10,189     ¥ 19,028  
 
Note:
Loans held for sale, policy loan receivables of an insurance entity and financing receivables, such as accounts receivable are not included in the table above.
 
 
The information about card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year as of March 31, 2024 and 2025 and the gross write-offs, corresponding to card loans, recorded during fiscal 2024 and 2025 is as follows:
 
   
March 31, 2024
  
   
Millions of yen
  
Portfolio segment
  
Revolving
repayment
card loans
    
Modification of
collection condition
by relief of contract
condition
    
Total—revolving
repayment card
loans
    
Total—

origination year

(excluding revolving

repayment card
loans)
    
Total—

financial assets
measured at amortized
cost
  
Credit quality
Consumer borrowers:
          
Performing
   ¥ 72,353     ¥ 0     ¥ 72,353     ¥ 4,785,497     ¥ 4,857,850  
         
 
 
  
Non-Performing
     0       0       0       109,381     ¥ 109,381  
         
 
 
  
Gross write-offs
     780       138       918       62,275     ¥ 63,193  
         
 
 
  
 
   
March 31, 2025
  
   
Millions of yen
  
Portfolio segment
  
Revolving
repayment
card loans
    
Modification of
collection condition
by relief of contract
condition
    
Total—revolving
repayment card
loans
    
Total—

origination year

(excluding revolving

repayment card

loans)
    
Total—

financial assets
measured at amortized
cost
  
Credit quality
Consumer borrowers:
          
Performing
   ¥ 67,874     ¥    0     ¥ 67,874     ¥ 4,895,662     ¥ 4,963,536  
         
 
 
  
Non-Performing
     0       0       0       163,322     ¥ 163,322  
         
 
 
  
Gross write-offs
     0       0       0       19,028     ¥ 19,028  
         
 
 
  
Of
non-performing
assets, the Company and its subsidiaries consider smaller balance homogeneous loans (including real estate loans and card loans, among others, which are not restructured) and net investment in leases as the 90 days or more
past-due
financing receivables not individually evaluated, and consider all others as the loans individually evaluated. After the Company and its subsidiaries have set aside a provision for those
non-performing
assets, the Company and its subsidiaries continue to monitor at least on a quarterly basis the quality of any underlying collateral, the business conditions of the debtors and other important factors in order to report to management and develop additional provision for credit losses as necessary.
 
 
The following table provides information about the
past-due
financial assets as of March 31, 2024 and 2025:
 
   
March 31, 2024
  
       
Millions of yen
  
       
Past-due
financial assets
        
Portfolio segment
  
Class
  
30-89 days

past-due
    
90 days

or more

past-due
    
Total

past-due
    
Total

financing

receivables
  
Consumer borrowers
     ¥ 3,994     ¥ 4,458     ¥ 8,452     ¥ 2,070,449  
  Real estate loans     2,064       2,178       4,242       1,947,461  
  Card loans     0       0       0       72,353  
  Other     1,930       2,280       4,210       50,635  
Corporate borrowers
       12,576       27,469       40,045       1,469,857  
Non-recourse
loans
   Japan     0       0       0       145,286  
 
The Americas
     2,502       1,126       3,628       50,263  
Other than
non-recourse
loans
   Real estate companies in Japan     113       115       228       334,506  
  Real estate companies in overseas     1,080       17,619       18,699       59,759  
 
Commercial, industrial and
other companies in Japan
     1,666       355       2,021       180,896  
 
Commercial, industrial and
other companies in overseas
     7,215       8,254       15,469       699,147  
Loans to Equity method investees
       0       0       0       251,929  
Net investment in leases
       23,376       18,995       42,371       1,155,023  
  Japan     2,525       4,372       6,897       624,094  
  Overseas     20,851       14,623       35,474       530,929  
   
 
 
    
 
 
    
 
 
    
 
 
  
Total
     ¥ 39,946     ¥ 50,922     ¥ 90,868     ¥ 4,947,258  
   
 
 
    
 
 
    
 
 
    
 
 
  
 
 
   
March 31, 2025
  
       
Millions of yen
  
       
Past-due
financial assets
        
Portfolio segment
  
Class
  
30-89 days

past-due
    
90 days

or more

past-due
    
Total

past-due
    
Total

financing

receivables
  
Consumer borrowers
     ¥ 4,481     ¥ 7,645     ¥ 12,126     ¥ 2,067,900  
  Real estate loans     2,536       5,423       7,959       1,956,816  
  Card loans     355       0       355       67,874  
  Other     1,590       2,222       3,812       43,210  
Corporate borrowers
       9,896       83,940       93,836       1,738,136  
Non-recourse
loans
   Japan     0       0       0       301,477  
  The Americas     2,141       3,696       5,837       86,724  
Other than
non-recourse
loans
   Real estate companies in Japan     200       29       229       415,666  
  Real estate companies in overseas     36       51,274       51,310       131,042  
 
Commercial, industrial and
other companies in Japan
     1,992       520       2,512       225,900  
 
Commercial, industrial and
other companies in overseas
     5,527       28,421       33,948       577,327  
Loans to Equity method investees
       0       0       0       132,053  
Net investment in leases
       20,113       20,577       40,690       1,167,380  
 
Japan
     3,851       3,915       7,766       618,963  
 
Overseas
     16,262       16,662       32,924       548,417  
   
 
 
    
 
 
    
 
 
    
 
 
  
Total
     ¥ 34,490     ¥ 112,162     ¥ 146,652     ¥ 5,105,469  
   
 
 
    
 
 
    
 
 
    
 
 
  
 
Note:
Loans held for sale, policy loans receivable of an insurance entity and purchased loans are not included in the table above.
In common with all classes, the Company and its subsidiaries consider financial assets as
past-due
financial assets when principal or interest is
past-due
30 days or more. Loans whose terms have been modified are not classified as
past-due
financial assets if the principal and interest are not
past-due
30 days or more in accordance with the modified terms.
 
 
The following table provides information about
non-accrual
of financial assets as of March 31, 2024 and 2025:
 
   
March 31, 2024
  
   
Millions of yen
  
   
Beginning
balance
    
Ending
balance
    
Interest income
recognized during
the reporting period
    
Balance not
associated
allowance for credit
losses among
financial assets
measured at
amortized cost,
which is suspending
recognition of
income
  
Non-accrual
of financial assets:
        
Installment loans to consumer borrowers:
        
Real estate loans
        
Japan
   ¥ 1,693     ¥ 1,095     ¥ 246     ¥ 129  
Overseas
     547       1,107       0       100  
Card loans
        
Japan
     1,367       0       27       0  
Other
        
Japan
     5,429       96       169       7  
Overseas
     1,105       2,574       0       35  
Installment loans to corporate borrowers:
        
Non-recourse
loans
        
The Americas
     3,248       3,116       0       0  
Other than
non-recourse
loans
        
Real estate companies
        
Japan
     219       115       45       4  
Overseas
     12,804       16,093       0       0  
Commercial, industrial and other companies
        
Japan
     1,118       355       312       42  
Overseas
     20,470       27,636       0       2,319  
Loans to Equity method investees
     667       1,929       0       1,282  
Net investment in leases
     16,627       19,002       0       0  
 
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 65,294     ¥ 73,118     ¥ 799     ¥ 3,918  
 
 
 
    
 
 
    
 
 
    
 
 
  
 
 
   
March 31, 2025
  
   
Millions of yen
  
   
Beginning
balance
    
Ending
balance
    
Interest income
recognized during
the reporting period
    
Balance not
associated
allowance for credit
losses among
financial assets
measured at
amortized cost,
which is suspending
recognition of
income
  
Non-accrual
of financial assets:
        
Installment loans to consumer borrowers:
        
Real estate loans
        
Japan
   ¥ 1,095     ¥ 1,235     ¥ 260     ¥ 128  
Overseas
     1,107       4,976       0       0  
Other
        
Japan
     96       86       1       0  
Overseas
     2,574       2,373       0       4  
Installment loans to corporate borrowers:
        
Non-recourse
loans
        
The Americas
     3,116       3,831       0       603  
Other than
non-recourse
loans
        
Real estate companies
        
Japan
     115       29       30       0  
Overseas
     16,093       52,272       0       0  
Commercial, industrial and other companies
        
Japan
     355       520       54       37  
Overseas
     27,636       60,629       0       2,203  
Loans to Equity method investees
     1,929       1,345       0       0  
Net investment in leases
     19,002       20,597       0       0  
 
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 73,118     ¥ 147,893     ¥ 345     ¥ 2,975  
 
 
 
    
 
 
    
 
 
    
 
 
  
The Company and its subsidiaries suspend accruing interest on
past-due
installment loans and net investment in leases when principal or interest is
past-due
90 days or more, or earlier, if management determines that their collections are doubtful based on factors such as individual debtors’ creditworthiness, historical loss experience, current delinquencies and delinquency trends. The Company and its subsidiaries return to accrual status
non-accrual
loans and net investment in leases when it becomes probable that the Company and its subsidiaries will be able to collect all amounts due according to the contractual terms of these loans and lease receivables, as evidenced by continual payments from the debtors. The period of such continual payments before returning to accrual status varies depending on factors that are considered relevant in assessing the debtor’s creditworthiness, such as the debtor’s business characteristics and financial conditions as well as relevant economic conditions and trends.
 
 
The following table provides information about troubled debt restructurings of financing receivables that occurred during fiscal 2023.
 
   
Fiscal Year ended March 31, 2023
  
       
Millions of yen
  
Portfolio segment
  
Class
  
Pre-modification

outstanding

recorded investment
    
Post-modification

outstanding

recorded investment
  
Consumer borrowers
     ¥ 7,977     ¥ 6,171  
  Real estate loans     10       4  
  Card loans     1,536       1,312  
  Other     6,431       4,855  
Corporate borrowers
       10,510       10,507  
Other than
non-recourse
loans
   Real estate companies in Japan     231       230  
 
Commercial, industrial and
other companies in overseas
     10,279       10,277  
   
 
 
    
 
 
  
Total
     ¥   18,487     ¥   16,678  
   
 
 
    
 
 
  
A troubled debt restructuring is defined as a restructuring of a financing receivable in which the creditor grants a concession to the debtor for economic or other reasons related to the debtor’s financial difficulties.
The Company and its subsidiaries offer various types of concessions to our debtors to protect as much of the investment as possible in troubled debt restructurings. For the debtors of all financing receivables, the Company and its subsidiaries offer concessions including an extension of the maturity date at an interest rate lower than the current market rate for a debt with similar risk characteristics. In addition, for the debtors of all financing receivables other than
non-recourse
loans, the Company and its subsidiaries also offer concessions such as a reduction of the loan principal or a temporary reduction in the interest payments. Furthermore, the Company and its subsidiaries may acquire collateral assets from the debtors in troubled debt restructurings to satisfy fully or partially the loan principal or past due interest.
In common with all portfolio segments, financing receivables modified as troubled debt restructurings are recognized as impaired and are individually evaluated for allowance for credit losses. In most cases, these financing receivables have already been considered impaired and individually evaluated for allowance for credit losses prior to the restructurings. However, as a result of the restructuring, the Company and its subsidiaries may recognize additional allowance for credit losses for the restructured receivables.
For fiscal 2023, while there are financial assets for which the payments were deferred other than those in the troubled debt restructuring stated above due to the spread of
COVID-19,
the payment deferrals, which are determined not to meet the definition of a troubled debt restructuring are not included in the troubled debt restructuring stated the above.
 
 
The following table provides information about financing receivables modified as troubled debt restructurings within the previous 12 months from March 31, 2023 and for which there was a payment default during fiscal 2023:
 
    
Fiscal Year ended March 31, 2023
  
         
Millions of yen
  
Portfolio segment
   
Class
   
Recorded investment
  
Consumer borrowers
       ¥ 808  
   Real estate loans      5  
   Card loans      2  
   Other      801  
Corporate borrowers
         4,692  
Other than
non-recourse
loans
   
Commercial, industrial and
other companies in overseas
      4,692  
     
 
 
  
Total
       ¥ 5,500  
     
 
 
  
The Company and its subsidiaries consider financing receivables whose terms have been modified in a restructuring as defaulted receivables when principal or interest is
past-due
90 days or more in accordance with the modified terms.
In common with all portfolio segments, the Company and its subsidiaries suspend accruing interest and may recognize additional allowance for credit losses as necessary for the defaulted financing receivables.
 
 
The following table provides information about modifications of financing receivables made to debtors experiencing financial difficulty that occurred during fiscal 2024 and 2025:
 
Fiscal Year ended March 31, 2024
  
Millions of yen
  
Portfolio segment
   
Interest rate reduction
     
Term extension
     
Principal forgiveness
  
Class
   
Amortized
cost basis
     
% of total
class of
financing
receivable
     
Amortized
cost basis
     
% of total
class of
financing
receivable
     
Amortized
cost basis
     
% of total
class of
financing
receivable
  
Consumer borrowers
    ¥ 1,266        0.1      ¥ 4,652        0.2      ¥ 42        0.0  
Real estate loans
      5        0.0        1        0.0        1        0.0  
Card loans
      1,176        1.6        6        0.0        40        0.1  
Other
      85        0.2        4,645        9.2        1        0.0  
Corporate borrowers
      0        0        4,499        0.3        932        0.1  
Non-recourse
loans
      0        0        1,277        0.7        0        0  
The Americas
      0        0        1,277        2.5        0        0  
Other than
non-recourse
loans
      0        0        3,222        0.3        932        0.1  
Real estate companies in Japan
      0        0        69        0.0        0        0  
Commercial, industrial and other companies in Japan
      0        0        711        0.4        0        0  
Commercial, industrial and other companies in overseas
      0        0        2,442        0.3        932        0.1  
Loans to Equity method investees
      0        0        955        0.4        0        0  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    ¥ 1,266        0.0      ¥ 10,106        0.2      ¥ 974        0.0  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Fiscal Year ended March 31, 2024
  
Millions of yen
  
Portfolio segment
   
Combination - interest rate

reduction and term
extension
     
Combination - interest rate

reduction and principal
forgiveness
     
Combination - term
extension and principal
forgiveness
  
Class
   
Amortized
cost basis
     
% of total
class of
financing
receivable
     
Amortized
cost basis
     
% of total
class of
financing
receivable
     
Amortized
cost basis
     
% of total
class of
financing
receivable
  
Consumer borrowers
    ¥ 93        0.0      ¥ 546        0.0      ¥ 365        0.0  
Real estate loans
      0        0        2        0.0        0        0  
Card loans
      0        0.0        525        0.7        0        0  
Other
      93        0.2        19        0.0        365        0.7  
Corporate borrowers
      446        0.0        0        0        220        0.0  
Non-recourse
loans
      0        0        0        0        0        0  
The Americas
      0        0        0        0        0        0  
Other than
non-recourse
loans
      446        0.0        0        0        220        0.0  
Real estate companies in Japan
      0        0        0        0        0        0  
Commercial, industrial and other companies in Japan
      0        0        0        0        0        0  
Commercial, industrial and other companies in overseas
      446        0.1        0        0        220        0.0  
Loans to Equity method investees
      0        0        0        0        3,392        1.3  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    ¥ 539        0.0      ¥ 546        0.0      ¥ 3,977        0.1  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
 
 
Fiscal Year ended March 31, 2024
 
 
 
Millions of yen
 
Portfolio segment
 
Combination - interest rate
reduction, term extension and
principal forgiveness
 
Class
 
Amortized

cost basis
 
 
% of total

class of

financing
receivable
 
Consumer borrowers
   ¥ 0       0  
Real estate loans
     0       0  
Card loans
     0       0  
Other
     0       0  
Corporate borrowers
     327       0.0  
Non-recourse
loans
     0       0  
The Americas
     0       0  
Other than
non-recourse
loans
     327       0.0  
Real estate companies in Japan
     0       0  
Commercial, industrial and other companies in Japan
     0       0  
Commercial, industrial and other companies in overseas
     327       0.0  
Loans to Equity method investees
     0       0  
 
 
 
    
 
 
  
Total
   ¥ 327        0.0  
 
 
 
    
 
 
  
 
Fiscal Year ended March 31, 2025
 
Millions of yen
 
Portfolio segment
  
Interest rate reduction
 
  
Term extension
 
  
Principal forgiveness
 
Class
  
Amortized
cost basis
 
  
% of total

class of

financing

receivable
 
  
Amortized
cost basis
 
  
% of total
class of
financing
receivable
 
  
Amortized
cost basis
 
  
% of total
class of
financing
receivable
 
Consumer borrowers
    ¥ 2        0.0      ¥ 50        0.0      ¥ 0        0  
Other
      2        0.0        50        0.1        0        0  
Corporate borrowers
      0        0        11,318        0.7        16        0.0  
Non-recourse loans
      0        0        2,141        0.6        0        0  
The Americas
      0        0        2,141        2.5        0        0  
Other than non-recourse loans
      0        0        9,177        0.7        16        0.0  
Real estate companies in Japan
      0        0        1,272        0.3        0        0  
Real estate companies in overseas
      0        0        0        0        0        0  
Commercial, industrial and other companies in Japan
      0        0        623        0.2        0        0  
Commercial, industrial and other companies in overseas
      0        0        7,282        1.3        16        0.0  
Loans to Equity method investees
      0        0        933        0.7        0        0  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
    ¥ 2        0.0      ¥ 12,301        0.2      ¥ 16        0.0  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
 
Portfolio segment
  
Combination - interest
rate reduction and term
extension
 
Class
  
Amortized
cost basis
    
% of total
class of
financing
receivable
  
Consumer borrowers
   ¥ 138       0.0  
Other
     138       0.3  
Corporate borrowers
     14,407       0.8  
Non-recourse loans
     0       0  
The Americas
     0       0  
Other than
non-recourse
loans
     14,407       1.1  
Real estate companies in Japan
     0       0  
Real estate companies in overseas
     1,701       1.3  
Commercial, industrial and other companies in Japan
     0       0  
Commercial, industrial and other companies in overseas
     12,706       2.2  
Loans to Equity method investees
     0       0  
 
 
 
    
 
 
  
Total
   ¥   14,545         0.3  
 
 
 
    
 
 
  
 
The Company and its subsidiaries offer various types of concessions to the debtors to protect as much of the investment as possible in modifications of financing receivables made to debtors experiencing financial difficulty. For the debtors of all financing receivables, the Company and its subsidiaries offer concessions including an interest rate reduction and a term extension. In addition, for the debtors of all financing receivables other than
non-recourse
loans, the Company and its subsidiaries also offer concessions such as a principal forgiveness or a temporary reduction in the interest payments. Furthermore, the Company and its subsidiaries may acquire collateral assets from the debtors in modifications of financing receivables made to debtors experiencing financial difficulty to satisfy fully or partially the loan principal or past due interest.
In common with all portfolio segments, financing receivables modified to debtors experiencing financial difficulty are recognized as impaired and are individually evaluated for allowance for credit losses, taking into account payment default and repayment status after modifications. In most cases, these financing receivables have already been considered impaired and individually evaluated for allowance for credit losses prior to the modifications. However, as a result of the modification, the Company and its subsidiaries may recognize additional allowance for credit losses for the modified receivables.

The following table provides information about the financial effect of the modifications of financing receivables made to debtors experiencing financial difficulty that occurred during fiscal 2024 and 2025:
 
    
Fiscal Year ended March 31, 2024
    
Millions of yen
Portfolio segment
   
Financial effect
Class
   
Interest rate reduction
   
Term extension
   
Principal forgiveness
Consumer borrowers
         
Real estate loans
    Reduced weighted-average contractual interest rate from 5.3% to 0.0%.    Added a weighted-average 1.0 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥8 millio
n.
 
 
 
  
Fiscal Year ended March 31, 2024
 
  
Millions of yen
Portfolio segment
  
Financial effect
Class
  
Interest rate reduction
  
Term extension
  
Principal forgiveness
Card loans
    Reduced weighted-average contractual interest rate from 12.7% to 0.7%.    Added a weighted-average 0.9 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥185 million.
Other
    Reduced weighted-average contractual interest rate from 14.6% to 5.3%.    Added a weighted-average 4.9 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥785 million.
Corporate borrowers
         
Non-recourse
loans
         
The Americas
    —     Added a weighted-average 1.0 years to the life of loans.    — 
Other than
non-recourse
loans
         
Real estate companies in Japan
    —     Added a weighted-average 0.5 years to the life of loans.    — 
Commercial, industrial and other companies in Japan
    —     Added a weighted-average 1.0 years to the life of loans.    — 
Commercial, industrial and other companies in overseas
    Reduced weighted-average contractual interest rate from 8.8% to 6.4%.    Added a weighted-average 3.1 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥1,487 million.
Loans to Equity method investees
    —     Added a weighted-average 0.6 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥624 million.
Net investment in leases
             
 
Overseas
    —     —     Reduced the amortized cost basis of the loans by ¥0 million.
 
 
  
Fiscal Year ended March 31, 2025
 
  
Millions of yen
Portfolio segment
  
Financial effect
Class
  
Interest rate reduction
  
Term extension
  
Principal forgiveness
Consumer borrowers
  
  
  
Other
  
Reduced weighted-average contractual interest rate from 16.5% to 11.8%.
  
Added a weighted-average 2.4 years to the life of loans.
  
— 
Corporate borrowers
  
— 
  
— 
  
— 
 
 
 
  
Fiscal Year ended March 31, 2025
 
  
Millions of yen
Portfolio segment
  
Financial effect
Class
  
Interest rate reduction
  
Term extension
  
Principal forgiveness
Non-recourse
loans
  
  
  
The Americas
   
— 
    Added a weighted-average 0.2 years to the life of loans.   
— 
Other than
non-recourse
loans
    —     —     — 
Real estate companies in Japan
    —     Added a weighted-average 2.6 years to the life of loans.    — 
Real estate companies in overseas
    Reduced weighted-average contractual interest rate from 7.9% to 6.5%.    Added a weighted-average 2.5 years to the life of loans.    — 
Commercial, industrial and other companies in Japan
    —     Added a weighted-average 0.9 years to the life of loans.    — 
Commercial, industrial and other companies in overseas
    Reduced weighted-average contractual interest rate from 15.2% to 11.8%.    Added a weighted-average 1.1 years to the life of loans.    Reduced the amortized cost basis of the loans by ¥11 million.
Loans to Equity method investees
    —     Added a weighted-average 0.5 years to the life of loans.   
— 
 
 
The following table provides information about financing receivable that had a payment default and had been modified, when the debtor was experiencing financial difficulty, within the previous 12 months preceding the payment default date during fiscal 2024 and 2025.
 
   
Fiscal Year ended March 31, 2024
  
   
Millions of yen
  
Portfolio segment
  
Interest rate
reduction
    
Term extension
    
Principal
forgiveness
    
Combination
- interest rate
reduction and
term
extension
    
Combination
- interest rate
reduction and
principal
forgiveness
    
Combination
- term extension

and principal
forgiveness
  
Class
Consumer borrowers
   ¥   25     ¥   212     ¥   1     ¥     0     ¥   33     ¥   9  
Real estate loans
     3       0       0       0       0       0  
Card loans
     18       0       1       0       28       0  
Other
     4       212       0       0       5       9  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 25     ¥ 212     ¥ 1     ¥ 0     ¥ 33     ¥ 9  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
   
Fiscal Year ended March 31, 2025
  
   
Millions of yen
  
Portfolio segment
  
Interest rate
reduction
    
Term extension
    
Principal
forgiveness
    
Combination
- interest rate
reduction and
term
extension
    
Combination
- interest rate
reduction and
principal
forgiveness
    
Combination
- term extension

and principal
forgiveness
  
Class
Consumer borrowers
   ¥    0     ¥     0     ¥   0     ¥   17     ¥    0     ¥   0  
Other
     0       0       0       17       0       0  
Corporate borrowers
     0       0       0       7,620       0       0  
Other than non-recourse loans
     0       0       0       7,620       0       0  
Commercial, industrial and other companies in overseas
     0       0       0       7,620       0       0  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 0     ¥ 0     ¥ 0     ¥ 7,637     ¥ 0     ¥ 0  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
The Company and its subsidiaries consider financing receivables whose terms have been modified to debtors experiencing financial difficulty as defaulted receivables when principal or interest is
past-due
90 days or more in accordance with the modified terms.
In common with all portfolio segments, the Company and its subsidiaries suspend accruing interest and may recognize additional allowance for credit losses as necessary for the defaulted receivables.
 
 
The following table provides information about the
past-due
financial assets modified to debtors experiencing financial difficulty within the previous 12 months from March 31, 2024 and 2025:
 
    
March 31, 2024
  
    
Millions of yen
  
Portfolio segment
   
Current
     
30-89 days

past-due
     
90 days

or more

past-due
  
Class
Consumer borrowers
    ¥ 35      ¥    91      ¥ 7  
Real estate loans
      1        0        0  
Other
      34        91        7  
Corporate borrowers
      6,140        0        284  
Non-recourse
loans
      1,277        0        0  
The Americas
      1,277        0        0  
Other than
non-recourse
loans
      4,863        0        284  
Real estate companies in Japan
      37        0        32  
Commercial, industrial and other companies in Japan
      481        0        230  
Commercial, industrial and other companies in overseas
      4,345        0        22  
Loans to Equity method investees
      4,347        0        0  
  
 
 
     
 
 
     
 
 
  
Total
    ¥ 10,522      ¥ 91      ¥ 291  
  
 
 
     
 
 
     
 
 
  
 
    
March 31, 2025
  
    
Millions of yen
  
Portfolio segment
   
Current
     
30-89 days

past-due
     
90 days

or more

past-due
  
Class
Consumer borrowers
    ¥    173      ¥  1      ¥  17  
Other
      173        1        17  
Corporate borrowers
      23,857        2,141        45  
Non-recourse
loans
      0        2,141        0  
The Americas
      0        2,141        0  
Other than
non-recourse
loans
      23,857        0        45  
Real estate companies in Japan
      1,243        0        29  
Real estate companies in overseas
      1,701        0        0  
Commercial, industrial and other companies in Japan
      623        0        0  
Commercial, industrial and other companies in overseas
      20,290        0        16  
Loans to Equity method investees
      933        0        0  
  
 
 
     
 
 
     
 
 
  
Total
    ¥ 24,963      ¥ 2,142      ¥ 62  
  
 
 
     
 
 
     
 
 
  
As of March 31, 2024 and 2025, there were no foreclosed residential real estate properties. The carrying amounts of installment loans in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure were ¥119 million and ¥79 million as of March 31, 2024 and 2025, respectively.