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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 FY 2010
1. Revenue and Expenses
- In the first quarter of FY2010, the Bank recorded consolidated net revenue of 20.4 billion yen, representing steady progress of 26.8% towards the full-year forecast of 76.0 billion yen. Although this result was down 1.2 billion yen (-5.4%) year on year, the previous year’s results included special factors, such as gains from the sale of legacy CDO assets (1.5 billion yen).
- Despite a decrease in average interest earning assets, net interest income increased by 0.2 billion yen (+1.5%) to 12.1 billion yen, largely due to an expansion of the net interest margin. Net trading revenue increased by 2.7 billion yen (+638.5%) to 3.1 billion yen, due to an increase in gains from derivative transactions, underpinned by favorable sales of derivative-embedded time deposits to retail customers. Net fees and commissions decreased 2.7 billion yen (-56.7%) to 2.1 billion yen, due to the absence of large transactions that benefited the first quarter of FY2009. Net other ordinary income decreased by 1.4 billion yen (-31.2%) to 3.0 billion yen as the previous year’s results included special factors, such as the aforementioned gains from CDOs, and hedge funds.
- General and administrative expenses were 10.1 billion yen, a decrease of 1.0 billion yen (-9.4%) year on year, as a result of continued strict controls on costs. Business profit was 10.3 billion yen.
- Credit-related expenses were 2.4 billion yen, a year on year increase of 0.7 billion yen, reflecting the Bank’s actions to strengthen preventative measures. Tax expense, including deferred income tax credits, decreased 2.5 billion yen to a net benefit of 0.5 billion yen. As a result of the above factors, consolidated net income increased 1.9 billion yen (+34.7%) to 7.3 billion yen, representing a year on year improvement for the second consecutive year.
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2. Balance Sheet
- Total assets were 4,966.5 billion yen as of June 30, 2010, a decrease of 3.7%, or 190.8 billion yen compared to March 31, 2010. This result included a decrease in loans and bills discounted of 145.1 billion yen (-4.7%), a decrease in securities of 123.4 billion yen (-9.7%), and a decrease in cash and due from banks of 102.3 billion yen (-42.0%). Contributing to the increase in ‘Others’ were an increase in call loans of 40.0 billion yen, receivables under securities borrowing transactions of 62.4 billion yen, and trading assets of 77.9 billion yen.
- On the funding side, deposits and negotiable certificates of deposit decreased by 47.7 billion yen (-1.5%) as compared to March 31, 2010 and debentures decreased by 154.1 billion yen (-27.4%). Total liabilities decreased by 200.4 billion yen (-4.3%) to 4,418.2 billion yen.
- Total net assets were 548.3 billion yen, an increase of 9.6 billion yen (+1.8%) from March 31, 2010, largely due to the positive net income.
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3. Disclosed Claims under the Financial Reconstruction Law (Non-consolidated)
- Non-performing claims as defined by the Financial Reconstruction Law (FRL) were 164.7 billion yen, a decrease of 7.1 billion yen as compared to March 31, 2010. The FRL Ratio increased by 0.02% from March 31, 2010 to 5.54%, reflecting a decrease in total credit. While the percentage of FRL claims covered by reserves, collateral and guarantees decreased by 0.5% from March 31, 2010 to 84.9% as of June 30, 2010, coverage remained at a high level.
4. Capital Adequacy Ratio (Domestic standard)
- This will be confirmed and published in mid-August.
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