Financial Review

Consolidated Financial Condition

Income

Total income decreased ¥1,995 million (2.3 percent) year on year to ¥83,172 million, primarily because of a decrease in total interest income due to lower income from interest on loans and discounts.

However, total expenses decreased ¥2,668 million (3.6 percent) to ¥72,415 million due to factors including a decrease in interest expenses, primarily interest on deposits, and a decrease in credit-related expenses.

As a result, net income for the fiscal year ended March 31, 2011 increased ¥1,810 million (32.2 percent) year on year to ¥7,433 million.

Net Interest Margin (Non-Consolidated)
  Millions of yen
  2011 2010 Increase
(decrease)
Interest income ¥57,091 ¥59,712 ¥(2,621)  
Average interest-earning assets 4,066,043 3,957,599 108,444  
Average interest rate of interest-earning assets (%) 1.40 1.50 (0.10)  points
Interest expense 7,400 9,728 (2,328)  
Average interest-bearing liabilities 3,943,986 3,840,696 103,289  
Average interest rate of interest-bearing liabilities (%) 0.18 0.25 (0.07)  points
Net interest income 49,690 49,984 (293)  
Funding cost (%) 1.30 1.37 (0.07)  points
Net interest margin (%) 0.10 0.13 (0.03)  points
   
Note:  Figures for average interest-bearing liabilities are presented after deducting the average outstanding balance of money held in trust and interests.
graph: Net Income graph: ROA graph: ROE

Deposits and Negotiable Certificates of Deposit

As of March 31, 2011, total deposits and negotiable certificates of deposit increased ¥90,926 million (2.4 percent) from a year earlier to ¥3,917,826 million, due to a solid increase in individual deposits.

Deposits by Depositor (Non-Consolidated)
  Millions of yen
  2011 2010 Increase
(decrease)
Individuals ¥3,026,151 ¥2,946,130 ¥80,021
Corporations 696,760 708,791 (12,031)
Governments 172,372 157,905 14,467
Financial institutions 30,336 22,231 8,104
Total ¥3,925,621 ¥3,835,058 ¥90,562
 
graph: Deposits

Loans and Bills Discounted

The balance of loans and bills discounted as of March 31, 2011 increased ¥24,980 million (1.0 percent) from a year earlier to ¥2,437,212 million. Factors included an increase in loans to the public sector.

Loans to Individuals (Non-Consolidated)
  Millions of yen
  2011 2010 2009 2008 2007 2011/2010
Increase
(decrease)
Balance of loans to individuals ¥561,457 ¥562,576 ¥561,604 ¥554,674 ¥550,166 ¥(1,118)  
     Balance of loans to individuals in the region 561,449 562,565 561,593 554,664 550,152 (1,115)  
Number of borrowers 107,845 109,786 111,360 112,887 113,312 (1,941)  
     Number of borrowers in the region 107,807 109,747 111,322 112,842 113,265 (1,940)  
Loans to individuals as a percentage of total loans 23.0% 23.3% 22.7% 24.3% 25.6% (0.3)  points
     Loans to individuals in the region as a
          percentage of total loans in the region		 28.3 28.5 27.7 29.0 29.8 (0.2)  
   
Consumer Loans (Non-Consolidated)
  Millions of yen
  2011 2010 2009 2008 2007 2011/2010
Increase
(decrease)
Consumer loans ¥536,815 ¥535,457 ¥532,328 ¥523,351 ¥516,882 ¥1,357  
     Housing loans 485,619 480,370 472,700 457,360 445,017 5,249  
     Securities and other 51,195 55,087 59,628 65,990 71,864 (3,891)  
   
Loans to Small and Medium-sized Companies (Non-Consolidated)
  Millions of yen
  2011 2010 2009 2008 2007 2011/2010
Increase
(decrease)
Balance of loans to small and medium-sized companies ¥885,123 ¥885,018 ¥941,006 ¥911,527 ¥923,311 ¥104  
     Balance of loans to small and medium-sized companies in the region 844,001 840,313 890,177 856,354 868,074 3,687  
Number of borrowers 16,210 15,938 15,606 15,487 15,572 272  
     Number of borrowers in the region 16,162 15,883 15,547 15,408 15,492 279  
Loans to small and medium-sized companies as a percentage of total loans 36.2% 36.6% 38.0% 40.0% 43.0% (0.4)  points
     Loans to small and medium-sized companies in the
          region as a percentage of total loans in the region		 42.6 42.6 43.9 44.7 47.0 –  
     
Notes:  1. The above amounts do not include loans from Japan offshore market accounts.
  2. Small and medium-sized companies are classified as those having capital of ¥300 million or less (¥100 million or less in the wholesale industry; ¥50 million or less in the retail and service industries) or those having 300 or fewer employees (100 or fewer in the wholesale industry; 50 or fewer in the retail industry and 100 or fewer in the service industry).
Outstanding Loans by Industry (Non-Consolidated)
  Millions of yen
  2011   2010
  ¥2,442,187   ¥2,417,188
Manufacturing 433,472   452,213
Agriculture, Forestry 6,277   6,277
Fishery 3,685   4,150
Mining, Quarrying, Gravel quarrying 3,731   3,645
Construction 114,070   117,750
Utilities 36,928   34,494
Telecommunication 18,128   18,600
Transport, Post 113,861   115,309
Wholesale & Retail 301,541   294,923
Finance & Insurance 125,511   111,798
Real estate, Rental 275,251   267,802
Academic research, Specialist and Technical service 11,709   14,511
Accomodation 15,474   16,844
Food 14,191   14,649
Lifestyle-related service, Entertainment 18,415   17,672
Education, Learning support 8,053   8,883
Medical, Social welfare 87,497   88,484
Other services 43,104   41,724
National and local government 249,822   224,878
Other 561,457   562,576
graph: Loans and Bills Discounted

Securities

The balance of securities as of March 31, 2011 increased ¥130,383 million (8.8 percent) from a year earlier to ¥1,611,307 million.

graph: Investment Securities  

Capital Adequacy Ratio

Hyakugo Bank applies domestic standards for determining capital adequacy. As of March 31, 2011, the Bank’s capital adequacy ratio based on domestic standards was 12.40 percent, and the Tier I capital ratio was 9.94 percent. On a non-consolidated basis, the capital adequacy ratio based on domestic standards was 12.06 percent, and the Tier I ratio was 9.59 percent.

  Millions of yen
  Consolidated Non-Consolidated
March 31 2011 2010 2011 2010
Tier I:
Common shareholders’ equity ¥193,924 ¥189,595 ¥184,706 ¥180,939
Total Tier I capital 193,924 189,595 184,706 180,939
Tier II:
Premises revaluation account, after 55% discount 3,454 3,567 3,454 3,567
Reserve for possible loan losses 9,742 10,093 9,231 9,550
Total Tier II capital 48,197 48,660 47,685 48,117
Deduction from capital 185 1 185 1
Total capital 241,936 238,254 232,207 229,056
Total risk-adjusted assets 1,949,694 1,993,516 1,925,346 1,968,728
Capital adequacy ratio (%) 12.40 11.95 12.06 11.63
graph: Total Assets graph: Capital Adequacy Ratio

Net Assets

Net assets as of March 31, 2011 totaled ¥234,019 million.

graph: Total Equity  

Cash Flows

Net cash provided by operating activities totaled ¥127,237 million, reflecting an increase in deposits and other factors. Net cash used in investing activities totaled ¥158,864 million, reflecting purchase of securities and other factors. Net cash used in financing activities totaled ¥3,664 million due to factors including purchase of treasury stock.

As a result, cash and cash equivalents at the end of the fiscal year decreased ¥35,307 million from a year earlier to ¥72,681 million.

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