Current Status of Nonperforming Loans
Policy for Disposal of Nonperforming Loans and Total Amount of Disposal of Nonperforming Loans in the Fiscal Year Ended March 31, 2017
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 asset quality. In addition, the Bank aggressively works to recover nonperforming loans, and is carrying out the final disposal of nonperforming loans through sales and other means.
As a result, disposal of nonperforming loans on a consolidated basis in the fiscal year ended March 31, 2017 totaled ¥3,042 million.
Risk-Monitored Loans and Balance, Prior-Year Comparison and Loans Disclosed under the Financial Reconstruction Law
Risk-monitored loans on a consolidated basis totaled ¥61,331 million as of March 31, 2017, a decrease of ¥1,308 million from a year earlier, and represented 2.07 percent of total loans outstanding, a decrease of 8 basis points from a year earlier.
Loans disclosed under the Financial Reconstruction Law on a non-consolidated basis totaled ¥60,904 million as of March 31, 2017, a decrease of ¥1,438 million from a year earlier. Nonperforming loans as a percentage of total credit outstanding remained at a low level, decreasing 9 basis points from a year earlier to 2.04 percent. The coverage for nonperforming loans was 78.38 percent, and the Bank maintains appropriate reserves to cover future risks and improve asset quality.
| Millions of yen | |||||||
|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | 2017/2016 Increase (decrease) |
||
| Loans disclosed according to the Financial Reconstruction Law (normal loans excluded) |
¥61,940 | ¥63,519 | ¥69,905 | ¥75,447 | ¥80,415 | ¥(1,578) | |
| Reserve for possible loan losses | 15,131 | 14,587 | 19,050 | 18,546 | 17,745 | (543) | |
| Collateral, etc. | 33,481 | 36,193 | 37,651 | 41,138 | 46,746 | (2,711) | |
| Coverage amount | ¥48,612 | ¥50,781 | ¥56,702 | ¥59,684 | ¥64,492 | ¥(2,168) | |
| Coverage ratio | 78.48% | 79.94% | 81.11% | 79.10% | 80.19% | (1.46)% | points |
| Millions of yen | |||||||
|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | 2017/2016 Increase (decrease) |
||
| Bankrupt and quasi-bankrupt assets | ¥8,404 | ¥8,970 | ¥12,321 | ¥10,612 | ¥10,410 | ¥(566) | |
| Doubtful assets | 45,098 | 43,715 | 47,820 | 54,222 | 58,021 | 1,382 | |
| Substandard loans | 8,437 | 10,832 | 9,763 | 10,612 | 11,982 | (2,395) | |
| Total of problem assets | ¥61,940 | ¥63,519 | ¥69,905 | ¥75,447 | ¥80,415 | ¥(1,578) | |
| Normal assets | ¥2,932,615 | ¥2,882,935 | ¥2,812,550 | ¥2,697,466 | ¥2,522,189 | ¥49,679 | |
| Ratio of the problem assets to loans | 2.06% | 2.15% | 2.42% | 2.72% | 3.08% | (0.09)% | points |
| Millions of yen | ||||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2015 | 2014 | 2013 | 2017/2016 Increase (decrease) |
|
| Loans to borrowers in legal bankruptcy | ¥873 | ¥1,572 | ¥2,725 | ¥2,371 | ¥1,417 | ¥(699) |
| Past due loans | 52,021 | 50,234 | 56,581 | 61,697 | 66,205 | 1,786 |
| Past due three months or more | 12 | 172 | 22 | 25 | 1,982 | (159) |
| Restructured loans | 8,424 | 10,660 | 9,740 | 10,587 | 10,000 | (2,235) |
| Total | ¥61,331 | ¥62,640 | ¥69,070 | ¥74,682 | ¥79,605 | ¥(1,308) |
| March 31, 2017 | (Billions of yen) | |||||
| Failure | Substantial failure possible | Possible failure | Loans under close observation | Pass | Total | |
| Substandard | Others | |||||
| ¥0.8 | ¥7.0 | ¥44.5 | ¥14.1 | ¥95.7 | ¥2,810.7 | ¥2,973.0 |