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Disposal of Nonperforming Loans
Hyakugo Bank makes appropriate write-offs and provisions to reserves according to the possibility of recovery or the risk of impairment of loan assets, as determined by the Bank’s self-assessment of credits. In addition, the Bank aggressively works to recover nonperforming loans by methods such as collection from borrowers and liquidation of collateral through auctions. Hyakugo Bank is also working toward the final disposal of nonperforming loans through sales and other means. As a result, the amount of disposal of nonperforming loans on a consolidated basis as of March 31, 2004 totaled ¥15,912 million, an increase of ¥7,943 million compared to the previous fiscal year-end.
Balance, Prior-Year Comparison and Regional Bank Average of Loans Disclosed under the Financial Reconstruction Law and Risk-Monitored Loans
Loans disclosed under the Financial Reconstruction Law totaled ¥98,646 million as of March 31, 2004, a decrease of ¥3,619 million compared to a year earlier. Nonperforming loans as a percentage of total credit outstanding remained at a low level, decreasing 6 basis points from a year earlier to 4.81 percent. For reference, this ratio on a non-consolidated basis was 4.77 percent, and the average for all regional banks in Japan was 6.80 percent. In addition, the coverage for nonperforming loans was 80.17 percent, and the Bank maintains appropriate reserves to cover future risks and improve asset quality.
Risk-monitored loans on a consolidated basis totaled ¥97,871 million as of March 31, 2004, a decrease of ¥2,852 million from a year earlier, and represented 4.91 percent of total loans outstanding.
|
| Coverage for Credit Exposure under Financial Reconstruction Law Disclosure Standards (Consolidated) |
| |
Millions of yen |
| |
2004 |
2003 |
2002 |
2001 |
2000 |
2004/2003
Increase
(decrease) |
Loans disclosed according to the
Financial Reconstruction Law
(normal loans excluded) |
¥98,646 |
|
¥102,265 |
|
¥98,190 |
|
¥75,980 |
|
¥60,607 |
|
¥(3,619) |
|
| Reserve for possible loan losses |
30,803 |
|
38,052 |
|
35,052 |
|
30,486 |
|
23,067 |
|
(7,249) |
|
| Collateral,etc. |
48,291 |
|
50,253 |
|
50,015 |
|
41,943 |
|
30,816 |
|
(1,961) |
|
| Coverage amount |
¥79,094 |
|
¥ 88,305 |
|
¥85,068 |
|
¥72,429 |
|
¥53,883 |
|
¥(9,211) |
|
| Coverage ratio |
80.17 |
% |
86.35 |
% |
86.63 |
% |
95.32 |
% |
88.90 |
% |
(6.18) |
point |
|
 |
| Loans under the Financial Reconstruction Law (Consolidated) |
| |
Millions of yen |
| |
2004 |
2003 |
2002 |
2001 |
2000 |
2004/2003
Increase
(decrease) |
| Bankrupt and quasi-bankrupt assets |
¥ 17,491 |
|
¥ 32,785 |
|
¥ 29,082 |
|
¥25,489 |
|
¥20,927 |
|
¥(15,294) |
|
| Doubtful assets |
44,478 |
|
40,520 |
|
40,313 |
|
27,813 |
|
20,712 |
|
3,958 |
|
| Substandard loans |
36,676 |
|
28,958 |
|
28,795 |
|
22,678 |
|
18,967 |
|
7,717 |
|
| Total of problem assets |
¥98,646 |
|
¥ 102,265 |
|
¥ 98,190 |
|
¥ 75,980 |
|
¥60,607 |
|
¥(3,619) |
|
| Normal assets |
¥1,952,196 |
|
¥1,993,974 |
|
¥1,984,921 |
|
¥1,959,836 |
|
¥1,942,401 |
|
¥(41,778) |
|
| Ratio of the problem assets to loans |
4.81 |
% |
4.87 |
% |
4.71 |
% |
3.73 |
% |
3.02 |
% |
(0.06) |
point |
|
|
| Risk-Monitored Loans (Consolidated) |
| |
Millions of yen |
| |
2004 |
2003 |
2002 |
2001 |
2000 |
2004/2003
Increase
(decrease) |
| Loans to borrowers in legal bankruptcy |
¥ 5,725 |
|
¥ 13,799 |
|
¥12,697 |
|
¥11,605 |
|
¥11,444 |
|
¥(8,074) |
|
| Past due loans |
55,469 |
|
57,972 |
|
55,131 |
|
40,587 |
|
29,717 |
|
(2,503) |
|
| Past due three months or more |
559 |
|
620 |
|
465 |
|
3,760 |
|
4,888 |
|
(60) |
|
| Restructured loans |
36,116 |
|
28,330 |
|
28,315 |
|
18,857 |
|
14,013 |
|
(7,786) |
|
| Total |
¥97,871 |
|
¥100,723 |
|
¥96,610 |
|
¥74,811 |
|
¥60,064 |
|
¥(2,852) |
|
|
| Nonperforming Loans under Internal-Assessment Standard (Non-Consolidated) |
| March 31, 2004 |
(Billions of yen) |
| Failure
|
Substantial failure possible |
Possible failure |
Loans under close observation |
Pass |
Total |
| Substandard |
Others |
| 5.8 |
11.3 |
44.0 |
55.8 |
121.1 |
1,809.9 |
2,048.2 |
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