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This web site contains forward-looking statements regarding the Bank's financial condition and results of operations. These forward-looking statements, which include the Bank's views and assumptions with respect to future events, involve certain risks and uncertainties. Actual results may differ from forecasts due to changes in economic conditions and other factors.
Financial Results for the First Nine Months for FY 2009
1. Revenue and Expenses
- In the first nine months of FY2009 the Bank achieved consolidated net revenue of 54.1 billion yen (a 52.2 billion yen increase yoy), reflecting strong growth in core earnings.
- Net interest income was 35.3 billion yen (a 10.4 billion yen decrease yoy), almost in line with the plan, due to a decrease in the average balance of interest-earning assets. The result for net fees and commissions was a strong 10.7 billion yen (a 2.0 billion yen increase yoy), reflecting a significant increase in fees on the Bank’s loan related businesses, which has contributed to the growth in core earnings. Net trading revenues were 6.2 billion yen (a 28.5 billion yen decrease yoy), and net other ordinary income was 1.9 billion yen (an 89.1 billion yen improvement yoy) as a result of the absence of special factors due to the significant addressing of non-performing assets in the previous fiscal year.
- General and administrative expenses were 32.3 billion yen (a 5.0 billion yen decrease yoy) as a result of continued strict cost controls. As a result of the above factors, consolidated business profit was 21.8 billion yen (-35.4 billion yen for the same period last year).
- Credit-related expenses were 12.3 billion yen (a 49.7 billion yen decrease yoy), and the Bank’s tax expense was 1.1 billion yen (5.9 billion yen for the same period last year). As a result, consolidated net income was 7.3 billion yen (-109.4 billion yen for the same period last year).
- For the third quarter ended December 31, 2009, a loss was recorded for net trading revenues reflecting a reduction of unrealized gain on the Bank’s CDS positions for hedging credit exposure to Aiful Corporation. These CDS positions are required to be accounted for as 'trading assets' and marked to market. Strong core earnings enabled the Bank to absorb the trading loss. As a result, business profit and net income of 2.1 billion yen and 0.9 billion yen, respectively, were recorded. The Bank has reported positive net income for three consecutive quarters this fiscal year.
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2. Balance Sheet
- Total assets were 5,458.5 billion yen as of December 31, 2009 (a 618.8 billion yen, or 10.2%, decrease from March 31, 2009). Contributing to the decrease, loans and bills discounted stood at 3,190.0 billion yen (a 294.9 billion yen, or 8.5%, decrease from March 31, 2009) mainly due to the continuing reduction of overseas loans and a more conservative approach to new lending. Securities stood at 1,260.6 billion yen (a 134.0 billion yen, or 11.9%, increase) and cash and due from banks was 295.8 billion yen (a 376.7 billion yen, or 56.0%, decrease). The changes to the Bank’s securities and cash balances reflected a shift in the focus of liquidity reserve operations from cash to JGBs and foreign bonds.
- On the funding side, deposits were 2,876.5 billion yen (a 250.9 billion yen, or 9.6%, increase from March 31, 2009), mainly due to an increase of approximately 360.0 billion yen in retail deposits. Debentures stood at 758.3 billion yen (a 731.4 billion yen, or 49.1%, decrease), reflecting the suspension of debenture issuance between October 2008 and August 2009, and adjustments to the Bank’s funding operations.
- As a result of these factors, total liabilities fell 629.1 billion yen, or 11.3%, to 4,918.7 billion yen.
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3. Disclosed Claims under the Financial Reconstruction Law (Non-consolidated)
- Financial Reconstruction Law (FRL) claims stood at 189.3 billion yen (a 49.1 billion yen, or 35.1%, increase from March 31, 2009) and the FRL ratio (non-consolidated) was 6.34% (a 2.01% increase from March 31, 2009). The majority of the 49.1 billion yen increase consisted of claims to the Aiful Group, whose ADR procedure was approved in December 2009. The percentage of FRL claims covered by reserves, collateral and guarantees was 71.5% (22.0% decrease from March 31, 2009); however, this amount does not include the impact of the Bank’s CDS positions for hedging credit exposure to Aiful Corporation, as of December 31, 2009.
4. Consolidated Capital Adequacy Ratio (Domestic standard)
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