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, 2018

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, 2018 was a gain on reversals of ¥1,126 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 ¥52,934 million as of March 31, 2018, a decrease of ¥8,397 million from a year earlier, and represented 1.69 percent of total loans outstanding, a decrease of 38 basis points from a year earlier.
Loans disclosed under the Financial Reconstruction Law on a non-consolidated basis totaled ¥52,454 million as of March 31, 2018, a decrease of ¥8,449 million from a year earlier.
Nonperforming loans as a percentage of total credit outstanding remained at a low level, decreasing 37 basis points from a year earlier to 1.67 percent. The coverage for nonperforming loans was 79.12 percent, and the Bank maintains appropriate reserves to cover future risks and improve asset quality.

Coverage for Credit Exposure under Financial Reconstruction Law Disclosure Standards (Consolidated)

	Millions of yen
	2018	2017	2016	2015	2014	2018/2017 Increase (decrease)
Loans disclosed according to the Financial Reconstruction Law (normal loans excluded)	¥53,506	¥61,940	¥63,519	¥69,905	¥75,447	¥(8,434)
Reserve for possible loan losses	11,915	15,131	14,587	19,050	18,546	(3,216)
Collateral, etc.	30,506	33,481	36,193	37,651	41,138	(2,975)
Coverage amount	¥42,421	¥48,612	¥50,781	¥56,702	¥59,684	¥(6,191)
Coverage ratio	79.28%	78.48%	79.94%	81.11%	79.10%	0.80%	points

Loans under the Financial Reconstruction Law (Consolidated)

	Millions of yen
	2018	2017	2016	2015	2014	2018/2017 Increase (decrease)
Bankrupt and quasi-bankrupt assets	¥6,982	¥8,404	¥8,970	¥12,321	¥10,612	¥(1,422)
Doubtful assets	39,799	45,098	43,715	47,820	54,222	(5,299)
Substandard loans	6,724	8,437	10,832	9,763	10,612	(1,713)
Total of problem assets	¥53,506	¥61,940	¥63,519	¥69,905	¥75,447	¥(8,434)
Normal assets	¥3,106,759	¥2,932,615	¥2,882,935	¥2,812,550	¥2,697,466	¥174,144
Ratio of the problem assets to loans	1.69%	2.06%	2.15%	2.42%	2.72%	(0.37)%	points

About Us

• Profile/Corporate Philosophy
• Corporate Statement
• Organization
• Hyakugo Bank Group
• Board of Directors, Corporate Auditors and Executive Officers
• History

Financial Data

• Six-Year Summary (Consolidated)
• Six-Year Summary
  (Non-Consolidated)

Annual Report 2018

• Message from the President
• Medium-term Management Plan
• Feature 1: PFI at Hyakugo Bank
• Feature 2: Work Style Reform
• Efforts to improve SME Management and Revitalize the Region
• Corporate Governance
• Compliance Measures
• Risk Management Measures
• Current Status of Nonperforming Loans
• Financial Review
• Shareholder Information
• Corporate Social Responsibility Initiatives
• Financial Section

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