Financial Review
Consolidated Financial Condition
Income
Total income decreased ¥3,426 million (3.95%) year on year to ¥83,395 million, primarily because of the posting of gain on repayment of retirement benefit trusts in the previous fiscal year. On the other hand, total expenses increased ¥4,331 million (6.57%) year on year to ¥70,238 million, primarily because of an increase in other operating expenses such as loss on foreign exchange transactions and expenses on derivatives other than for trading or hedging.
Net income attributable to owners of the parent decreased ¥4,593 million (33.69%) year on year to ¥9,040 million.
| Millions of yen | ||||
|---|---|---|---|---|
| 2017 | 2016 | Increase (decrease) |
||
| Interest income | ¥51,139 | ¥52,407 | ¥(1,268) | |
| Average interest-earning assets | 5,070,811 | 5,034,424 | 36,386 | |
| Average interest rate of interest-earning assets (%) | 1.00 | 1.04 | (0.04) | points |
| Interest expense | 4,576 | 4,989 | (413) | |
| Average interest-bearing liabilities | 5,001,236 | 4,909,287 | 91,949 | |
| Average interest rate of interest-bearing liabilities (%) | 0.09 | 0.10 | (0.01) | points |
| Net interest income | 46,563 | 47,418 | (854) | |
| Funding cost (%) | 0.92 | 0.96 | (0.04) | points |
| Net interest margin (%) | 0.08 | 0.08 | － | points |
| Note: | Figures for average interest-bearing liabilities are presented after deducting the average outstanding balance of money held in trust and interests. |
Deposits and Negotiable Certificates of Deposit
Deposits and negotiable certificates of deposit increased ¥75,514 million (1.6%) from a year earlier to ¥4,719,104 million, due to the solid performance of individual deposits and corporate deposits.
| Millions of yen | ||||
|---|---|---|---|---|
| 2017 | 2016 | Increase (decrease) |
||
| Individuals | ¥3,551,239 | ¥3,489,272 | ¥61,967 | |
| Corporations | 946,519 | 916,756 | 29,763 | |
| Governments | 197,632 | 211,186 | (13,554) | |
| Financial institutions | 36,054 | 38,046 | (1,992) | |
| Total | ¥4,731,445 | ¥4,655,261 | ¥76,184 | |
Loans and Bills Discounted
Loans and bills discounted as of March 31, 2017 increased ¥53,531million (1.9%) from a year earlier to ¥2,935,867 million, due primarily to increases in loans to individuals such as housing loans as well as loans to small- and medium-sized companies.
| Millions of yen | |||||||
|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | 2017/2016 Increase (decrease) |
||
| Balance of loans to individuals | ¥909,265 | ¥845,213 | ¥788,485 | ¥718,749 | ¥634,840 | ¥64,052 | |
| Balance of loans to individuals in the region | 909,219 | 845,206 | 788,477 | 718,738 | 634,826 | 64,013 | |
| Loans to individuals as a percentage of total loans | 30.9% | 29.3% | 28.0% | 26.5% | 25.0% | 1.6 | points |
| Loans to individuals in the region as a percentage of total loans in the region | 38.7 | 37.6 | 35.7 | 33.4 | 30.8 | 1.1 | |
| Millions of yen | ||||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | 2017/2016 Increase (decrease) |
|
| Consumer loans | ¥891,264 | ¥826,295 | ¥768,703 | ¥697,856 | ¥613,217 | ¥64,969 |
| Housing loans | 848,167 | 784,465 | 727,908 | 656,251 | 569,218 | 63,701 |
| Securities and other | 43,097 | 41,829 | 40,795 | 41,605 | 43,998 | 1,267 |
| Millions of yen | |||||||
|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | 2017/2016 Increase (decrease) |
||
| Balance of loans to small and medium-sized companies | ¥1,117,723 | ¥1,068,951 | ¥997,513 | ¥915,739 | ¥873,491 | ¥48,772 | |
| Balance of loans to small and medium-sized companies in the region | 966,258 | 923,768 | 893,459 | 865,490 | 842,335 | 42,490 | |
| Loans to small and medium-sized companies as a percentage of total loans | 38.0% | 37.0% | 35.4% | 33.8% | 34.5% | 1.0 | points |
| Loans to small and medium-sized companies in the region as a percentage of total loans in the region | 41.1 | 41.1 | 40.5 | 40.3 | 40.8 | 0.1 | |
| 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). |
| Millions of yen | ||
|---|---|---|
| 2017 | 2016 | |
| ¥2,940,712 | ¥2,887,184 | |
| Manufacturing | 345,516 | 368,656 |
| Agriculture, Forestry | 6,298 | 6,138 |
| Fishery | 4,117 | 3,384 |
| Mining, Quarrying, Gravel quarrying | 10,313 | 6,817 |
| Construction | 102,648 | 102,438 |
| Utilities | 70,010 | 58,154 |
| Telecommunication | 17,418 | 18,168 |
| Transport, Post | 100,482 | 98,623 |
| Wholesale & Retail | 256,453 | 270,520 |
| Finance & Insurance | 273,802 | 294,450 |
| Real estate, Rental | 388,066 | 357,133 |
| Academic research, Specialist and Technical service | 12,909 | 13,739 |
| Accomodation | 14,119 | 14,877 |
| Food | 15,387 | 14,713 |
| Lifestyle-related service, Entertainment | 22,866 | 25,929 |
| Education, Learning support | 7,264 | 6,592 |
| Medical, Social welfare | 112,832 | 107,490 |
| Other services | 38,824 | 38,379 |
| National and local government | 232,112 | 235,763 |
| Other | 909,265 | 845,213 |
Securities
The balance of securities as of March 31, 2017 increase ¥45,851 million (2.3%) from a year earlier to ¥2,043,568 million.
Capital Adequacy Ratio
Hyakugo Bank applies domestic standards for determining capital adequacy. As of March 31, 2017, the Bank’s capital adequacy ratio based on domestic standards was 9.91 percent. On a non-consolidated basis, the capital adequacy ratio based on domestic standards was 9.52 percent.
| Millions of yen | ||||
|---|---|---|---|---|
| Consolidated | Non-Consolidated | Consolidated | Non-Consolidated | |
| March 31 | 2017 | 2017 | 2016 | 2016 |
| Capital adequacy ratio (%) | 9.91 | 9.52 | 10.43 | 10.04 |
| Amount of total capital | ¥245,206 | ¥232,969 | ¥254,239 | ¥242,150 |
| Amount of total risk-adjusted assets | 2,472,420 | 2,445,131 | 2,436,587 | 2,409,910 |
| Amount of minimum total capital | 98,896 | 97,805 | 97,463 | 96,396 |
| Note : | New domestic standards in accordance with the Basel III are applied in calculation of the consolidated and non-consolidated capital adequacy ratio effective from March 31, 2014. |
|---|
Net Assets
Net assets as of March 31, 2017 totaled ¥342,761 million.
Cash Flows
Cash flow from operating activities increased ¥87,032 million due primarily to an increase in payables under securities lending transactions. Cash flow from investing activities decreased ¥57,251 million due primarily to purchase of securities. Cash flow from financing activities decreased ¥18,763 million due primarily to redemption of subordinated bonds.As a result, cash and cash equivalents at the end of the fiscal year increased ¥11,015 million to ¥328,084 million.