Leases

12 Months Ended

Mar. 31, 2024

Text Block1 [Abstract]

Leases

13 LEASES

As Lessee

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

Right of use assets

The carrying amount of right of use assets at March 31, 2024 and 2023 consisted of the following:

	Net carrying amount				Depreciation
	At March 31,				For the fiscal year ended March 31,
	2024		2023		2024		2023
	(In millions)
Land and buildings	¥	364,112	¥	380,615	¥	75,589	¥	77,407
Other tangible assets(1)		33,634		26,382		13,285		11,917
Intangible assets(2)		19,434		6,302		8,057		5,437
Total	¥	417,180	¥	413,299	¥	96,931	¥	94,761

(1) Other tangible assets include mainly office equipment, machinery and vehicles.

(2) Intangible assets include mainly software.

The additions of right of use assets for the fiscal years ended March 31, 2024 and 2023 were ¥91,025 million and ¥123,256 million, respectively. The Group leases mainly land and buildings for its head offices and branches.

Lease liabilities

The maturity analysis of lease liabilities at March 31, 2024 and 2023 were as follows:

	At March 31, 2024			At March 31, 2023
	(In millions)
Not later than one year	¥	84,555		¥	76,929
Later than one year and not later than five years		196,289			183,516
Later than five years		177,791			183,993
Total		458,635			444,438
Less: Future interest charges		(35,992	)		(27,441	)
Lease liabilities(1)	¥	422,643		¥	416,997

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

For the fiscal years ended March 31, 2024 and 2023, ¥5,815 million and ¥3,905 million were recognized as interests on lease liabilities, respectively and ¥100,518 million and ¥94,522 million were recognized as total cash outflow for leases, respectively.

As Lessor

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

Finance lease receivable

The maturity analysis of the lease payments receivable, showing the undiscounted lease payments to be received at March 31, 2024 and 2023 were as follows:

	At March 31, 2024
	Undiscounted lease payments		Unearned finance income		Discounted lease payments(1)		Unguaranteed residual values(1)
	(In millions)
Not later than one year	¥	96,610	¥	15,326	¥	81,284	¥	1,470
Later than one year and not later than two years		76,635		9,770		66,865		6,349
Later than two years and not later than three years		28,625		6,640		21,985		4,743
Later than three years and not later than four years		24,469		6,214		18,255		2,534
Later than four years and not later than five years		14,577		5,046		9,531		9,268
Later than five years		140,279		39,960		100,319		1,952
Total	¥	381,195	¥	82,956	¥	298,239	¥	26,316

	At March 31, 2023
	Undiscounted lease payments		Unearned finance income		Discounted lease payments(1)		Unguaranteed residual values(1)
	(In millions)
Not later than one year	¥	38,510	¥	14,944	¥	23,566	¥	862
Later than one year and not later than two years		30,015		9,813		20,202		2,413
Later than two years and not later than three years		65,669		10,064		55,605		5,975
Later than three years and not later than four years		25,616		8,536		17,080		6,111
Later than four years and not later than five years		21,687		7,519		14,168		4,158
Later than five years		213,275		66,950		146,325		11,446
Total	¥	394,772	¥	117,826	¥	276,946	¥	30,965

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

Accumulated allowance for net investment in the lease amounting to ¥890 million and ¥824 million were measured under IFRS 9 at March 31, 2024 and 2023, respectively. For the fiscal years ended March 31, 2024 and 2023, ¥13,487 million and ¥10,427 million were recognized as finance income on net investment in the lease, respectively.

Operating lease receivable

The total amounts of the future minimum lease payments receivable under non-cancellable operating leases at March 31, 2024 and 2023 were as follows:

	At March 31, 2024		At March 31, 2023
	(In millions)
Not later than one year	¥	202	¥	35,656
Later than one year and not later than two years		202		28,742
Later than two years and not later than three years		202		20,763
Later than three years and not later than four years		202		14,424
Later than four years and not later than five years		202		9,374
Later than five years		66		11,056
Total	¥	1,076	¥	120,015

For the fiscal years ended March 31, 2024 and 2023, ¥37,386 million and ¥39,654 million were recognized as income from operating leases, respectively.