Business Results

During the year ended March 31, 2006, total income increased ¥2,562 million from the previous fiscal year to ¥91,699 million. The increase resulted from growth in income from fees and commissions, including commissions on sales of investment trusts and insurance, and income from sales of securities. Total expenses decreased ¥1,948 million from the previous fiscal year to ¥71,547 million, due to factors including a substantial decrease in provision for possible loan losses. As a result, income before income taxes and minority interests increased ¥4,511 million to ¥20,151 million. Net income increased ¥4,228 million to ¥11,526 million.

Hyakugo Bank aims to be a bank that customers can truly rely on and that grows with the people in our operating region. We therefore began implementing a new management plan, the Second Management Plan of the New Century, in April 2004. In this plan, we have set our corporate statement “Frontier Banking” as our action guideline, and we are focusing on providing products and services with high added value, making management innovations from the standpoint of customers, and taking steps to secure greater soundness.

In the year ended March 2006, the second year of the plan, we implemented measures such as increasing the credit limit for the Hyakugo Business Loan Manekineko to facilitate fund procurement for small and medium-sized corporate customers. We also began offering the Hyakugo Home Loan Platinum Plan to meet a wide range of financing needs for new construction or purchase of homes. In addition, we enhanced our products to meet customers’ investment needs by offering options such as the Duet Plan, a limited-time product that packages a time deposit and investment trust to offer time deposits with more attractive interest rates. Moreover, we took steps to make ATMs more convenient for customers, including a tie-up with Seven Bank, Ltd., expansion of our ATM network partners, and the addition of a passbook replacement function. To protect customers’ deposits from improper access by forged cash cards or other means, we have introduced a series of measures such as allowing customers to set daily withdrawal limits on their cards. In addition, we energetically promoted mergers and acquisitions, syndicated loans, business matching, and securitization of receivables to meet the diversifying needs of our customers.

In the final year of the plan, the year ending March 2007, we will work to achieve the plan’s targets under the basic policy of “Completing the Second Management Plan of the New Century” in order to become a bank that is truly trusted by customers.

Hyakugo Bank has conducted wide-ranging corporate activities in areas including strengthening its legal compliance and risk management structures. Furthermore, we view Corporate Social Responsibility (CSR), which has recently been gaining attention, as meeting the various expectations of our customers, shareholders, employees and communities, as well as expectations in regard to the environment. We are implementing CSR activities to live up to the trust placed in us by society.

The management and staff of Hyakugo Bank will continue working to earn your trust by contributing to the development of the Mie region.

 

Hajimu Maeda
President