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Credit Quality of Financial Assets and the Allowance for Credit Losses
 6 Months Ended
Sep. 30, 2025
Credit Loss [Abstract]  
Credit Quality of Financial Assets and the Allowance for Credit Losses
7.
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 as of March 31, 2025, and for the six months ended September 30, 2024 and 2025 :
 
   
Six months ended September 30, 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
   ¥ 3,203     ¥ 68     ¥ 0     ¥ (44 )    ¥ 35     ¥ 1     ¥ 3,263     ¥ 2,972     ¥ 291  
Overseas
     581       359       0       0       0       (49 )      891       432       459  
Card loans
                  
Japan
     12       (8 )      0       0       7       1       12       12       0  
Other
                  
Japan
     91       (2 )      0       0       4       (2 )      91       6       85  
Overseas
     3,060       1,815       0       (2,131 )      223       (121 )      2,846       1,457       1,389  
Installment loans to corporate borrowers:
                  
Non-recourse
loans
                  
Japan
     429       156       0       0       0       0       585       585       0  
The Americas
     1,718       445       0       0       0       (127 )      2,036       1,038       998  
Other than
non-recourse
loans
                  
Real estate companies
                  
Japan
     975       58       0       0       13       (2 )      1,044       961       83  
Overseas
     1,549       361       0       0       0       (130 )      1,780       626       1,154  
Commercial, industrial and other companies
                  
Japan
     857       496       0       (125 )      16             0        1,244       773       471  
Overseas
     25,824       (1,509 )      0       (2,433 )      24       (3,507 )      18,399       11,492       6,907  
Loans to Equity method investees
     878       1,410       0       (37 )      0       (173 )      2,078       420       1,658  
Purchased loans *1
     1,133       7       597       (608 )      1       (10 )      1,120       530       590  
Net investment in leases:
     16,780       1,833       0       (1,120 )      37       (131 )      17,399       10,945       6,454  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
     57,090       5,489       597       (6,498 )      360       (4,250 )      52,788       32,249       20,539  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost *2
     1,020       91       0       (122 )      9       (30 )      968       268       700  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 58,110     ¥ 5,580     ¥ 597     ¥ (6,620 )    ¥ 369     ¥ (4,280 )    ¥ 53,756     ¥ 32,517     ¥ 21,239  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
    
March 31, 2025
  
    
Millions of yen
  
    
Ending
balance
     
Collective
(pool)
assessment
     
Individual
assessment
  
Allowance for credit losses:
         
Installment loans to consumer borrowers:
         
Real estate loans
         
Japan
    ¥ 2,891      ¥ 2,609      ¥ 282  
Overseas
      1,679        505        1,174  
Card loans
         
Japan
      36        36        0  
Other
         
Japan
      90        6        84  
Overseas
      3,048        1,355        1,693  
Installment loans to corporate borrowers:
         
Non-recourse
loans
         
Japan
      462        462        0  
The Americas
      2,593        1,548        1,045  
Other than
non-recourse
loans
         
Real estate companies
         
Japan
      908        877        31  
Overseas
      2,046        764        1,282  
Commercial, industrial and other companies
         
Japan
      1,078        586        492  
Overseas
      20,063        11,919        8,144  
Loans to Equity method investees
      1,512        167        1,345  
Purchased loans *1
      1,342        521        821  
Net investment in leases:
      18,122        11,236        6,886  
  
 
 
     
 
 
     
 
 
  
Subtotal
      55,870        32,591        23,279  
  
 
 
     
 
 
     
 
 
  
Other financial assets measured at amortized cost *2
      899        299        600  
  
 
 
     
 
 
     
 
 
  
Total
    ¥ 56,769      ¥ 32,890      ¥ 23,879  
  
 
 
     
 
 
     
 
 
  
 
   
Six months ended September 30, 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
   ¥ 2,891     ¥ 93     ¥ 0     ¥ (31 )    ¥ 40     ¥ (275 )    ¥ 2,718     ¥ 2,675     ¥ 43  
Overseas
     1,679       (95 )      0       (78 )      0       47       1,553       494       1,059  
Card loans
                  
Japan
     36       (5 )      0       0       4       0       35       35       0  
Other
                  
Japan
     90       (4 )      0       0       2       (84 )      4       4       0  
Overseas
     3,048       1,146       0       (1,286 )      184       (16 )      3,076       1,295       1,781  
Installment loans to corporate borrowers:
                  
Non-recourse
loans
                  
Japan
     462       100       0       0       0       (6 )      556       556       0  
Overseas
     2,593       2,022       0       0       0       1,029       5,644       2,598       3,046  
Other than
non-recourse
loans
                  
Real estate companies
                  
Japan
     908       58       0       0       13       0       979       953       26  
Overseas
     2,046       178       0       0       0       (967 )      1,257       715       542  
Commercial, industrial and other companies
                  
Japan
     1,078       (13 )      0       0       4       (41 )     1,028       534       494  
Overseas
     20,063       2,571       0       (1,992 )      59       24       20,725       12,006       8,719  
Loans to Equity method investees
     1,512       19       0       0       0       (5 )      1,526       186       1,340  
Purchased loans *1
     1,342       7       3,633       (3,659 )     0       (984 )     339       133       206  
Net investment in leases:
     18,122       1,426       0       (1,344 )      137       321       18,662       11,254       7,408  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Subtotal
     55,870       7,503       3,633       (8,390 )     443       (957 )     58,102       33,438       24,664  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other financial assets measured at amortized cost *2
     899       64       0       (81 )      0       6       888       297       591  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 56,769     ¥ 7,567     ¥ 3,633     ¥ (8,471 )   ¥ 443     ¥ (951 )   ¥ 58,990     ¥ 33,735     ¥ 25,255  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
 
Note:
      
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 ¥7,319 million and ¥9,989 million during the six months ended September 30, 2024 and 2025. The reconciliation between the above table and the amounts reported on the consolidated statements of income during the six months ended September 30, 2024 and 2025 are as follows:
 
    
Millions of yen
  
    
Six months
ended
September 30,
2024
     
Six months
ended
September 30,
2025
  
    
Provision for
credit losses
     
Provision for
credit losses
  
Net investment in leases
    ¥ 1,833      ¥ 1,426  
Installment loans
      3,656        6,077  
  
 
 
     
 
 
  
Subtotal in the above table
      5,489        7,503  
  
 
 
     
 
 
  
Other financial assets measured at amortized cost
      91        64  
  
 
 
     
 
 
  
Total in the above table
      5,580        7,567  
  
 
 
     
 
 
  
Off-balance
sheet credit exposures *3(a)
      1,673        2,320  
Available-for-sale
debt securities *3(b)
      66        102  
  
 
 
     
 
 
  
Amount reported on the consolidated financial statements
    ¥ 7,319      ¥ 9,989  
  
 
 
     
 
 
  
 
  *3(a)
The allowance for
off-balance
sheet credit exposure were ¥9,766 million and ¥11,953 million as of March 31, 2025 and September 30, 2025, respectively, and the amounts are recorded in “Other liabilities” on the consolidated balance sheets. For further information, see Note 24 “Commitments, Guarantees and Contingent Liabilities.”
  *3(b)
The allowance for
available-for-sale
debt securities were ¥670 million and ¥771 million as of March 31, 2025 and September 30, 2025, respectively, and the amounts are recorded as a reduction in “Investment in securities” on the consolidated balance sheets. For further information, see Note 8 “Investment in Securities.”
*4
Included in
Charge-off
in write-offs of purchased loans were ¥597 million and ¥3,633 million during the six months ended September 30, 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 the six months ended September 30, 2024 and 2025:
 
    
Six months ended

September 30, 2024
     
Six months ended

September 30, 2025
  
Purchase price
    ¥ 1,129      ¥ 3,862  
Allowance for credit losses at acquisition date
      597        3,633  
Discount or premium attributable to other factors
      251        876  
  
 
 
     
 
 
  
Par value
    ¥ 1,977      ¥ 8,371  
  
 
 
     
 
 
  
 
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 the six months ended September 30, 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, 2025 and the gross write-offs recorded during the six months ended September 30, 2024. 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, 2025
  
Millions of yen
  
Portfolio segment
   
Origination year (years ended March 31)
     
Total
  
Class
       
Credit Quality
   
2025
     
2024
     
2023
     
2022
     
2021
     
Prior
  
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  
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  
Other
                     
Performing
      19,644        12,357        7,396        1,057        110        224      ¥ 40,788  
Non-Performing
      362        949        991        29        2        89      ¥ 2,422  
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  
Non-recourse
loans
                     
Japan
                     
Performing
      225,394        52,292        10,487        6,932        0        6,372      ¥ 301,477  
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  
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  
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  
 
March 31, 2025
  
Millions of yen
  
Portfolio segment
   
Origination year (years ended March 31)
     
Total
  
Class
       
Credit Quality
   
2025
     
2024
     
2023
     
2022
     
2021
     
Prior
  
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
 
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
 
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
 
Purchased loans:
                     
Performing
   
 
0
 
   
 
52
 
   
 
14
 
   
 
476
 
   
 
86
 
   
 
19,497
 
   
¥
20,125
 
Non-Performing
   
 
0
 
   
 
0
 
   
 
0
 
   
 
31
 
   
 
0
 
   
 
1,233
 
   
¥
1,264
 
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
 
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
 
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
 
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
 
 
Six months ended September 30, 2024
  
Millions of yen
  
    
Gross write-offs
  
Portfolio segment
   
Origination year (years ended March 31)
     
Total
  
Class
   
2025
     
2024
     
2023
     
2022
     
2021
     
Prior
  
Consumer borrowers:
  
 
        213
 
   
 
        928
 
   
 
        897
 
   
 
         80
 
   
 
          6
 
   
 
         51
 
   
¥
     2,175
 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Real estate loans
     0        0        0        0        0        44      ¥ 44  
Other
      213        928        897        80        6        7      ¥ 2,131  
Corporate borrowers:
  
 
0
 
   
 
43
 
   
 
35
 
   
 
2,329
 
   
 
14
 
   
 
137
 
   
¥
2,558
 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Other than non-recourse loans
      0        0        0        0        0        0      ¥ 0  
Commercial, industrial and other companies in Japan
   
 
0
 
   
 
0
 
   
 
0
 
   
 
0
 
   
 
6
 
   
 
119
 
   
¥
125
 
Commercial, industrial and other companies in overseas
   
 
0
 
   
 
43
 
   
 
35
 
   
 
2,329
 
   
 
8
 
   
 
18
 
   
¥
2,433
 
Loans to Equity method investees:
   
 
0
 
   
 
0
 
   
 
0
 
   
 
37
 
   
 
0
 
   
 
0
 
   
¥
37
 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Purchased loans:
   
 
0
 
   
 
0
 
   
 
0
 
   
 
57
 
   
 
255
 
   
 
296
 
   
¥
608
 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Net investment in leases:
   
 
0
 
   
 
120
 
   
 
337
 
   
 
218
 
   
 
151
 
   
 
294
 
   
¥
1,120
 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Japan
      0        3        49        97        122        250      ¥ 521  
Overseas
      0        117        288        121        29        44      ¥ 599  
Total (excluding revolving repayment card loans)
   
 
213
 
   
 
1,091
 
   
 
1,269
 
   
 
2,721
 
   
 
426
 
   
 
778
 
   
¥
6,498
 
 
The following table provides information about the origination years of financial assets as of September 30, 2025 and the gross write-offs, corresponding to each class of financial assets by origination year, recorded during the six months ended September 30, 2025. Card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year are excluded from the table.
 
September 30, 2025
  
Millions of yen
  
Portfolio segment
   
Origination year (years ended March 31)
     
Total
  
Class
       
Credit Quality
   
2026
     
2025
     
2024
     
2023
     
2022
     
Prior
  
Consumer borrowers:
                     
Performing
    ¥ 232,444      ¥ 302,791      ¥ 144,579      ¥ 148,640      ¥ 136,272      ¥ 1,056,898      ¥ 2,021,624  
Non-Performing
      101        1,480        1,577        3,864        2,166        11,482      ¥ 20,670  
Gross write-offs
      9        492        549        217        31        97      ¥ 1,395  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Real estate loans
                     
Performing
      221,468        288,462        136,334        144,383        135,926        1,056,753      ¥ 1,983,326  
Non-Performing
      18        974        728        2,894        2,156        11,479      ¥ 18,249  
Gross write-offs
      0        0        0        0        14        95      ¥ 109  
Other
                     
Performing
      10,976        14,329        8,245        4,257        346        145      ¥ 38,298  
Non-Performing
      83        506        849        970        10        3      ¥ 2,421  
Gross write-offs
      9        492        549        217        17        2      ¥ 1,286  
Corporate borrowers:
                     
Performing
      448,294        651,816        209,508        107,715        135,985        171,906      ¥ 1,725,224  
Non-Performing
      131        3,476        15,189        13,664        27,472        65,211      ¥ 125,143  
Gross write-offs
      120        1        364        30        28        1,449      ¥ 1,992  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Non-recourse
loans
                     
Japan
                     
Performing
      91,971        186,801        40,113        9,680        6,815        2,850      ¥ 338,230  
Gross write-offs
      0        0        0        0        0        0      ¥ 0  
Overseas
                     
Performing
      49,699        48,826        25,318        11,242        2,672        4,186      ¥ 141,943  
Non-Performing
      0        79        225        858        1,078        7,086      ¥ 9,326  
Gross write-offs
      0        0        0        0        0        0      ¥     0  
 
September 30, 2025
  
Millions of yen
  
Portfolio segment
   
Origination year (years ended March 31)
     
Total
  
Class
       
Credit Quality
   
2026
     
2025
     
2024
     
2023
     
2022
     
Prior
  
Other than
non-recourse
loans
                     
Real estate companies in Japan
                     
Performing
      128,306        135,748        54,828        27,430        21,423        79,263      ¥ 446,998  
Non-Performing
      0        0        0        5        0        541      ¥ 546  
Gross write-offs
      0        0        0        0        0        0      ¥ 0  
Real estate companies in overseas
                     
Performing
      19,033        54,549        1,526        1,426        0        7,039      ¥ 83,573  
Non-Performing
      0        0        10,149        9,814        13,074        39,203      ¥ 72,240  
Gross write-offs
      0        0        0        0        0        0      ¥ 0  
Commercial, industrial and other companies in Japan
                     
Performing
      61,020        80,771        33,578        13,045        8,349        17,007      ¥ 213,770  
Non-Performing
      0        414        54        128        11        1,611      ¥ 2,218  
Gross write-offs
      0        0        0        0        0        0      ¥ 0  
Commercial, industrial and other companies in overseas
                     
Performing
      98,265        145,121        54,145        44,892        96,726        61,561      ¥ 500,710  
Non-Performing
      131        2,983        4,761        2,859        13,309        16,770      ¥ 40,813  
Gross write-offs
      120        1        364        30        28        1,449      ¥ 1,992  
Loans to Equity method investees:
                     
Performing
      2,158        524        116,475        2,018        20        15,046      ¥ 136,241  
Non-Performing
      1        4        0        0        0        1,339      ¥ 1,344  
Gross write-offs
      0        0        0        0        0        0      ¥ 0  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Purchased loans:
                     
Performing
      0        0        0        0        0        5,786      ¥ 5,786  
Non-Performing
      0        0        0        0        0        213      ¥ 213  
Gross write-offs
      0        0        0        0        0        3,659      ¥ 3,659  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Net investment in leases:
                     
Performing
      260,811        389,175        254,314        130,961        65,938        79,123      ¥ 1,180,322  
Non-Performing
      537        2,358        5,244        4,019        1,628        6,561      ¥ 20,347  
Gross write-offs
      0        4        399        574        113        254      ¥ 1,344  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Japan
                     
Performing
      100,754        174,961        124,968        83,219        53,501        73,321      ¥ 610,724  
Non-Performing
      31        337        784        793        763        1,779      ¥ 4,487  
Gross write-offs
      0        2        39        117        93        238      ¥ 489  
Overseas
                     
Performing
      160,057        214,214        129,346        47,742        12,437        5,802      ¥ 569,598  
Non-Performing
      506        2,021        4,460        3,226        865        4,782      ¥ 15,860  
Gross write-offs
      0        2        360        457        20        16      ¥ 855  
Total (excluding revolving repayment card loans)
                     
Performing
    ¥ 943,707      ¥ 1,344,306      ¥ 724,876      ¥ 389,334      ¥ 338,215      ¥ 1,328,759      ¥ 5,069,197  
Non-Performing
      770        7,318        22,010        21,547        31,266        84,806      ¥ 167,717  
Gross write-offs
      129        497        1,312        821        172        5,459      ¥ 8,390  
 
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 ab
out c
ard loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year as of March 31, 2025 and the gross write-offs recorded during six months ended September 30, 2024 is as follows:
 
   
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  
            
 
 
  
 
   
Six months ended September 30, 2024
  
   
Millions of yen
  
   
Gross write-offs
  
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
  
Consumer borrowers:
   ¥         0     ¥         0      ¥         0      ¥     6,498      ¥     6,498  
            
 
 
  
The information about card loans to consumer borrowers with a revolving repayment feature that cannot be classified into the origination year as of September 30, 2025 and the gross write-offs, corresponding to card loans, recorded during the six months ended September 30, 2025 is as follows:
 
   
September 30, 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
   ¥ 65,759     ¥ 0      ¥ 65,759      ¥ 5,069,197      ¥ 5,134,956  
            
 
 
  
Non-Performing
             0               0                0        167,717      ¥ 167,717  
            
 
 
  
Gross write-offs
     0       0        0        8,390      ¥ 8,390  
            
 
 
  
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, 2025 and September 30, 2025:
 
    
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  
     
 
 
     
 
 
     
 
 
     
 
 
  
    
September 30, 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
       ¥ 2,541      ¥ 9,058      ¥ 11,599      ¥ 2,108,053  
   Real estate loans      752        6,867        7,619        2,001,575  
   Card loans      395        0        395        65,759  
   Other      1,394        2,191        3,585        40,719  
Corporate borrowers
         7,676        92,145        99,821        1,850,367  
Non-recourse
loans
    Japan      0        0        0        338,230  
  
Overseas
      0        4,691        4,691        151,269  
Other than
non-recourse
loans
    Real estate companies in Japan      285        32        317        447,544  
   Real estate companies in overseas      78        72,240        72,318        155,813  
  
Commercial, industrial and
other companies in Japan
      2,374        551        2,925        215,988  
  
Commercial, industrial and
other companies in overseas
      4,939        14,631        19,570        541,523  
Loans to Equity method investees
         0        4        4        137,585  
Net investment in leases
         22,436        18,281        40,717        1,200,669  
   Japan      2,452        3,937        6,389        615,211  
   Overseas      19,984        14,344        34,328        585,458  
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
       ¥ 32,653      ¥ 119,488      ¥ 152,141      ¥ 5,296,674  
     
 
 
     
 
 
     
 
 
     
 
 
  
 
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, 2025 and September 30, 2025:
 
           
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  
Card loans
   
 
Japan
 
      0        0        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  
  
 
 
     
 
 
     
 
 
     
 
 
  
 
           
September 30, 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
 
    ¥ 1,235      ¥ 1,288      ¥ 135      ¥ 100  
  
 
Overseas
 
      4,976        5,579        0        99  
Other
               
  
 
Japan
 
      86        0        0        0  
  
 
Overseas
 
      2,373        2,385        0        8  
Installment loans to corporate borrowers:
 
            
Non-recourse
loans
   
 
Overseas
 
      3,831        8,764        0        0  
Other than
non-recourse
loans
 
            
Real estate companies
 
            
  
 
Japan
 
      29        32        10        0  
  
 
Overseas
 
      52,272        71,865        0        0  
Commercial, industrial and
other companies
 
 
            
     Japan        520        551        2        0  
     Overseas        60,629        40,263        0        2,297  
Loans to Equity method investees
 
      1,345        1,344        0        0  
Net investment in leases
         20,597        18,324        0        0  
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
       ¥ 147,893      ¥ 150,395      ¥ 147      ¥ 2,504  
     
 
 
     
 
 
     
 
 
     
 
 
  
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 modifications of financing receivables made to debtors experiencing financial difficulty that occurred during the six months ended September 30, 2024 and 2025:
 
Six months ended September 30, 2024
  
 
  
Millions of yen
  
 
  
Portfolio segment
   
Term extension
     
Principal forgiveness
     
Combination - interest
rate reduction and
term extension
  
 
   
 
 
     
 
 
     
 
 
  
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
    ¥ 44        0.0      ¥ 0        0      ¥ 106        0.0  
Other
      44        0.1        0        0        106        0.2  
Corporate borrowers
      1,875        0.1        11        0.0        4,895        0.3  
Other than
non-recourse
loans
      1,875        0.2        11        0.0        4,895        0.4  
Real estate companies in Japan
      1,345        0.4        0        0        0        0  
Commercial, industrial and other companies in
Japan
      530        0.3        0        0        0        0  
Commercial, industrial and other companies in
overseas
      0        0        11        0.0        4,895        0.9  
Loans to Equity method investees
      891        0.6        0        0        0        0  
  
 
 
        
 
 
        
 
 
     
Total
    ¥ 2,810        0.1      ¥ 11        0.0      ¥ 5,001        0.1  
  
 
 
        
 
 
        
 
 
     
 
Six months ended September 30, 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
    ¥ 0        0      ¥ 10        0.0      ¥ 6        0.0  
Other
      0        0        10        0.0        0        0  
Corporate borrowers
      2,414        0.1        8,305        0.4        6        0.0  
Other than
non-recourse
loans
      2,414        0.2        8,305        0.6        6        0.0  
Real estate companies in Japan
      0        0        289        0.1        0        0  
Commercial, industrial and other companies in Japan
      0        0        433        0.2        0        0  
Commercial, industrial and other companies in overseas
      2,414        0.4        7,583        1.4        6        0.0  
Net investment in leases
      0        0        102        0.0        0        0  
Japan
      0        0        102        0.0        0        0  
  
 
 
        
 
 
        
 
 
     
Total
    ¥ 2,414        0.0      ¥ 8,417        0.2      ¥ 12        0.0  
  
 
 
        
 
 
        
 
 
     
 
Portfolio segment
   
Combination - interest rate

reduction and term extension
     
Combination - interest rate

reduction, term extension
and principal forgiveness
  
 
   
 
 
     
 
 
  
Class
   
Amortized
cost basis
     
% of total
class of
financing
receivable
     
Amortized
cost basis
     
% of total
class of
financing
receivable
  
 
   
 
 
     
 
 
     
 
 
     
 
 
  
Consumer borrowers
    ¥ 0        0      ¥ 0        0  
Other
      0        0        0        0  
Corporate borrowers
      49        0.0        1,201        0.1  
Other than
non-recourse
loans
      49        0.0        1,201        0.1  
Real estate companies in Japan
      0        0        0        0  
Commercial, industrial and other companies in Japan
      0        0        0        0  
Commercial, industrial and other companies in overseas
      49        0.0        1,201        0.2  
Net investment in leases
      0        0        0        0  
Japan
      0        0        0        0  
  
 
 
        
 
 
     
Total
    ¥      49                  0.0      ¥    1,201             0.0  
  
 
 
        
 
 
     
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 the six months ended September 30, 2024 and 2025:
 
Six months ended September 30, 2024
 
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 16.8% to 11.9%.		  
Added a weighted-average

2.4 years to the life of loans.		    — 
Corporate borrowers
        
Other than
non-recourse
loans
        
Real estate companies in Japan
    —    Added a weighted-average
2.6 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 14.3% to 12.9%.		   Added a weighted-average
2.3 years to the life of loans.		    Reduced the amortized cost basis of the loans by ¥7 million.
Loans to Equity method investees
    —    Added a weighted-average
0.5 years to the life of loans.		    — 
Six months ended September 30, 2025
 
Millions of yen
 
Portfolio segment
   
Financial effect
 
   
 
Class
   
Interest rate reduction
  
Term extension
   
Principal forgiveness
 
   
 
  
 
   
 
Consumer borrowers
        
Real estate loans
    —    —     Reduced the amortized cost basis of the loans by ¥54 million.
Other
    —    Added a weighted-average
1.0 years to the life of loans.		    — 
Corporate borrowers
        
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
0.9 years to the life of loans.		    — 
Commercial, industrial and other companies in overseas
    Reduced weighted-average
contractual interest rate
from 13.1% to 3.3%.		   Added a weighted-average
0.5 years to the life of loans.		    Reduced the amortized cost basis of the loans by ¥1,099 million.
Net investment in leases
        
Japan
    —    Added a weighted-average
0.2 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 the six months ended September 30, 2024 and 2025:
 
Six months ended September 30, 2024
  
 
  
Millions of yen
  
 
  
Portfolio segment
                  
 
            
Class
  
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
  
 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Consumer borrowers
   ¥ 0     ¥ 0     ¥ 0     ¥ 20     ¥ 0     ¥ 0  
Other
     0       0       0       20       0       0  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   ¥ 0     ¥ 0     ¥ 0     ¥ 20     ¥ 0     ¥ 0  
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
During the six ended September 30, 2025, there was no 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.
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.
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, 2025 and September 30, 2025:
 
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  
  
 
 
     
 
 
     
 
 
  
September 30, 2025
  
    
Millions of yen
  
Portfolio segment
   
Current
     
30-89
days

past-due
     
90 days

or more

past-due
  
Class
Consumer borrowers
    ¥ 45      ¥ 0      ¥ 6  
Real estate loans
      0        0        6  
Other
      45        0        0  
Corporate borrowers
      16,348        0        40  
Other than
non-recourse
loans
      16,348        0        40  
Real estate companies in Japan
      262        0        27  
Commercial, industrial and other companies in Japan
      540        0        0  
Commercial, industrial and other companies in overseas
      15,546        0        13  
  
 
 
     
 
 
     
 
 
  
Net investment in leases
      102        0        0  
Japan
      102        0        0  
  
 
 
     
 
 
     
 
 
  
Total
    ¥ 16,495      ¥ 0      ¥ 46  
  
 
 
     
 
 
     
 
 
  
As of March 31, 2025 and September 30, 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 ¥79 million and ¥152 million as of March 31, 2025 and September 30, 2025, respectively.