Financial Results for the First Half
Fiscal Year Ended September 30, 2011

Ashikaga Holdings Co., Ltd
The Ashikaga Bank, Ltd

Financial Results for the First Half Fiscal Year Ended September 30, 2011--------Contents---------------------------------------------------------Ⅰ Consolidated Financial Information for the First Half Fiscal 2011
1. Consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1
2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income・・・・・・・・・ 2

3. Consolidated Statement of Shareholders' Equity・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3
4. Consolidated Statements of Cash Flows・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4
5. Non-consolidated Balance Sheets・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5
6. Non-consolidated Statements of Income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 6
7. Non-consolidated Statement of Shareholders' Equity・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7
Ⅱ Financial Data for the First Half Fiscal 2011 (ended September 30, 2011)
1. Income Status・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 8
2. Net Business Income・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
3. Interest Rate Spread・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
4. Gains and Losses on Securities・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
5. Capital Adequacy Ratio・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11
6. Return on Equity・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11
Ⅲ Status of Loans
1. Risk-monitored Loans・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12
2. Reserve for Possible Loan Losses・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 13
3. Ratio to Reserve for Total Risk-monitored Loans・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 13
4. Loans subject to mandatory disclosure under the Financial Reconstruction Law・・・・・・ 14
5. Coverage of loans subject to mandatory disclosure under the Financial Reconstruction Law 14

6. Loan Portfolio・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15(1) Classification of loans by type of industry(2) Classification of risk-monitored loans by type of industry(3) Individual loans(4) Loans to small-and-medium-sized enterprises
7. Loans to Entities Overseas by Country・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16
8. Balance of Deposits and Loans・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16
Ⅳ Valuation Gains (Losses) on Securities
1. Valuation Standards of Securities・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17
2. Unrealized Valuation Gains (Losses) on Other Securities （available-for-sale securities)・・・・ 17

ⅠConsolidated Financial Information for the First Half Fiscal 2011
1. Consolidated Balance Sheets【Ashikaga Holdings Co., Ltd.】
Item
AssetsCash and due from banks
Call loans and bills purchased
Commercial paper and other debt purchased
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Intangible fixed assets
Deferred tax assets
Customer liabilities for acceptances and guarantees
Reserve for possible loan losses
Total Assets
Liabilities
Deposits
Negotiable certificates of deposit
Borrowed money
Foreign Exchanges
Other liabilities
Reserve for directors’ bonuses
Reserve for employee retirement benefits
Reserve for directors’ retirement benefits
Reserve for reimbursement of deposits
Reserve for contingent losses
Reserve for credit card rewards points
Reserve for losses on disaster
Acceptances and guarantees
Total liabilities
Net Assets
Capital stock
Capital surplus
Retained earnings
Total shareholders’ equity
Net unrealized valuation gains (losses) on other securities(available for sale securities)

Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets(Note) Figures are rounded down to the nearest million.

1

As of September 30,
2010(Millions of yen）
As of September 30,
2011

84,16680,468
7,456
4,926
2
1,302,030
3,357,703
4,408
26,56926,781
115,193
5,650
22,418(64,322)
4,973,454

217,928
184,061
8,541
3,778
−
1,067,372
3,430,717
5,130
25,25325,455111,984
9,997
18,348
ሺ48,534)
5,060,033

4,305,994
117,731230,356
545
39,68723
15,365
134
1,207
219
51
−
22,4184,733,734

4,493,442
119,429
120,175
552
46,94521
15,827
195
1,303
221
64
350
18,3484,816,879

105,010
95,78031,802
232,593

105,010
95,78040,437241,227

7,126

1,926

7,126
239,720
4,973,454

1,926
243,154
5,060,033

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income【Ashikaga Holdings Co., Ltd.】(1)Consolidated Statements of Income
Item(Millions of yen)First half FY
2010
55,25139,39833,506
5,629
8,695
6,945
212
44,291
4,456
2,568
2,750
46
30,290
6,747
10,9602,262
471
12,751
310
148
458
12,292
12,292First half FY
2011
52,041
37,242
31,684
5,240
8,670
5,160
967
41,533
3,960
2,096
2,889
26
32,331
2,326
10,507−41
10,466
305
(451)
(146)
10,612
10,612(2)Consolidated Statements of Comprehensive Income
Item
First half FY
2010−
Income before minority interests−
Other comprehensive income
Net unrealized valuation gains (losses) on other securities−

First half FY
2011
10,612(1,031)

Operating income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other business income
Other operating income
Operating expenses
Interest expenses
Interest on deposits
Fees and commissions
Other business expenses
General and administrative expenses
Other operating expenses
Operating profit
Special gains
Special losses
Net profit before income taxes
Corporate, inhabitant, business taxes
Corporate tax adjustments, etc.
Total corporate taxes, etc.
Income before minority interests
Net profit(Note) Figures are rounded down to the nearest million.

(available for sale securities)

Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests(Note) Figures are rounded down to the nearest million.

2

−
−
−

(1,031)
9,580
9,580
−

３．Consolidated Statement of Shareholders’ Equity【Ashikaga Holdings Co., Ltd.】(Millions of Yen)

ItemFirst half FY 2011
(ended September 30, 2011)

Shareholders’ equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net profit
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net profit
Total changes of items during the period
Balance at the end of current period
Accumulated other comprehensive income
Net unrealized valuation gains (losses) on other securities(available for sale securities)
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net profit
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period(Note) Figures are rounded down to the nearest million.

3

105,010−105,010
95,780−95,78035,494(5,670)10,612
4,942
40,437236,285(5,670)10,612
4,942
241,227

2,958(1,031)(1,031)
1,926
2,958(1,031)(1,031)
1,926
239,243(5,670)10,612(1,031)
3,910
243,154

4. Consolidated Statements of Cash Flows(Millions of yen)First half FY ended First half FY ended
Sep 30, 2010
Sep 30, 2011

【Ashikaga Holdings Co., Ltd.】Cash flows from operating activities
Net profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in reserve for loan losses
Increase (decrease) in reserve for directors' bonuses
Increase (decrease) in reserve for employee retirement benefits
Increase (decrease) in reserve for directors' retirement benefits

Increase (decrease) in reserve for reimbursement of deposits
Increase (decrease) in reserve for contingent losses
Increase (decrease) in reserve for credit card rewards points
Increase (decrease) in reserve for losses on disaster
Interest income
Interest expenses
Losses (gains) on securities
Losses (gains) on money held in trust
Losses (gains) on foreign exchange
Losses (gains) on dispositions of fixed assets
Net decrease (increase) in loans and bills discounted
Net increase (decrease) in deposits
Net increase (decrease) in negotiable certificates of deposit
Net increase (decrease) in borrowed money (excluding subordinated borrowed money)

Net decrease (increase) in due from banks (excluding due from the Bank of Japan)

Net decrease (increase) in call loans and bills purchased
Net decrease (increase) in trading securities
Net increase (decrease) in collateral deposits received for securities lending

Net decrease (increase) in foreign exchanges (assets)
Net increase (decrease) in foreign exchanges (liabilities)
Interest received
Interest paid
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Proceeds from sales of money held in trust
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchases of intangible fixed assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Repayment of lease liabilities
Net cash provided by (used in) financing activities
Effect of exchange rate cahnges on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

412,751
1,808
3,101(6,478)
(25)
(9)
(7)
(28)
54
(0)
(39,398)
4,456(5,520)
(0)
26
155
9,951
(57,942)
29,995
14,990(3,393)67,679(524)(10,315)68
109
37,285(2,564)(87)
56,138(264)
55,873

10,466
2,649
8
3,101
(6,562)
(49)
217
21
(46)
(64)
(0)
(168)
(37,242)
3,960(3,414)−334
32
43,911
11,925
12,310(169,061)
194(53,501)(236)(19,700)
1,093
89
36,578(2,865)
3,869(162,147)(458)(162,605)(933,583)
274,863598,669
82(1,595)165(1,381)
3(62,776)(237,111)
180,726
327,267−(471)(9)(3,640)(10)
266,751(5,670)(4)(5,674)(22)(12,599)
88,36775,768(5,670)(4)(5,674)(23)
98,447110,390
208,837

5. Non-consolidated Balance Sheets【The Ashikaga Bank, Ltd.】
Item
AssetsCash and due from banks
Call loans
Commercial paper and other debt purchased
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Intangible fixed assets
Deferred tax assets
Customer liabilities for acceptances and guarantees
Reserve for possible loan losses
Total Assets
Liabilities
Deposits
Negotiable certificates of deposit
Borrowed money
Foreign Exchanges
Other liabilities
Income taxes payable
Lease liabilities
Asset retirement obligations
OthersReserve for directors’ bonuses
Reserve for employee retirement benefits
Reserve for directors’ retirement benefits

Reserve for reimbursement of deposits
Reserve for contingent losses
Reserve for credit card rewards points
Reserve for losses on disaster
Acceptances and guarantees
Total liabilities
Net Assets
Capital stock
Retained earnings
Earned surplus reserve
Other earned surplus
Earned surplus brought forward
Total shareholders’ equity
Net unrealized valuation gains (losses) on other securities(available for sale securities)

Total valuation and translation adjustments, etc.
Total net assets
Total liabilities and net assets(Note) Figures are rounded down to the nearest million.

5(Millions of yen）
As of Sep 30, 2010

As of Sep 30, 2011

84,16580,468
7,456
4,926
2
1,331,011
3,356,237
4,408
21,613
27,9185,107
6,554
22,418(59,430)
4,892,859

217,926
184,061
8,541
3,778
−
1,096,349
3,429,272
5,130
20,882
26,6508,069
10,65918,348
ሺ43,824)
4,985,846

4,364,689
117,731150,356
545
23,955278
18
357
23,301
14
14,606
90
1,207
219
7
−
22,418
4,695,841

4,524,062
149,429
40,175552
31,69923118456
30,99312
15,164
119
1,303
221
23
350
18,3484,781,465

135,000
48,987
4,423
44,56344,563
183,987

135,000
62,741
6,434
56,30656,306
197,741

13,030

6,639

13,030197,018
4,892,859

6,639
204,380
4,985,846

6. Non-consolidated Statements of Income【The Ashikaga Bank, Ltd.】
Item(Millions of yen)First half FY
2010
52,39037,40931,830
5,320
7,997
6,777
206
38,746
2,769
2,578
2,775
26,5796,622
13,643
3,321
423
16,54142
61
103
16,437

Operating income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other business income
Other operating income
Operating expenses
Interest expenses
Interest on deposits
Fees and commissions
General and administrative expenses
Other operating expenses
Operating profit
Special gains
Special losses
Net profit before income taxes
Corporate, inhabitant, business taxes
Corporate tax adjustments, etc.
Corporate taxes, etc.
Net profit(Note) Figures are rounded down to the nearest million.

6

First half FY
201150,30035,60230,155
5,132
7,957
5,044
1,694
35,877
2,287
2,103
2,922
28,6462,021
14,422
41
14,381
42
(464)
(422)
14,804

7. Non-consolidated Statement of Shareholders’ Equity【The Ashikaga Bank., Ltd.】(Millions of Yen)First half FY 2011 (ended Sep 30, 2011)

Item
Stockholders’ equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings
Earned surplus reserve
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Total changes of items during the period
Balance at the end of current period
Other earned surplus
Earned surplus brought forward
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net profit
Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net profit
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net profit
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments

135,000−
135,000

4,423
2,010
2,010
6,434

53,567(12,064)
14,8042,739
56,30657,990(10,053)
14,804
4,750
62,741
192,990(10,053)
14,804
4,750
197,741

Net unrealized valuation gains (losses) on other securities (available for sale securities)

Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net profit
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period(Note) Figures are rounded down to the nearest million.

7

7,837
(1,197)(1,197)
6,639
7,837(1,197)(1,197)
6,639
200,828(10,053)
14,804(1,197)
3,552
204,380

Ⅱ Financial Data for the First Half Fiscal 2011（ended September 30, 2011）

1. Income Status【The Ashikaga Bank, Ltd.（Non-Consolidated basis）】(Millions of yen)First half
FY 2010First half
FY 2011Item
Gross business profit
Domestic gross business profit
Core gross business profit
Net interest income
Net fees and commissions
Net trading income
Net other business income
International gross business profit
Core gross business profit
Net interest income
Net fees and commissions
Net trading income
Net other business income
Expenses
Personnel expenses
Non-personnel expenses
Taxes
Net business income (before provision for general reserve for possible
loan losses)

Gains (losses) on bonds
Provision for general reserve for possible loan losses
Net business income (after provision for general reserve for possible
loan losses)

Net non-recurrent gains (losses)
Gains (losses) on stocks
Disposal of non-performing loans
Write-off amount of loans
Provision for specific reserve for possible loan losses

Losses on sales of loans
Provision for reserve for contingent losses
Reversal of reserve for possible loan losses
Recovery of written-off claims
Operating profit
Net special gains (losses)
Reversal of reserve for possible loan losses
Recovery of written-off claims
Net gains (losses) from fixed assets
Gains on dispositions of fixed assets
Losses on dispositions of fixed assets
Impairment losses
Losses caused by adoption of accounting standard for asset
retirement obligations

Net profit before income taxes
Corporate, inhabitant, business taxes
Corporate tax adjustments, etc.
Net profit(A)
43,39542,77938,19033,134
4,981
−
4,662
616
534
180
53
−
382
28,217
13,073
13,225
1,918
15,177(A)-(B)(3,243)(3,058)(1,332)(1,260)(183)−(1,615)
(184)
(266)
(63)
(3)
−
(116)
2,026
656
1,326
43
(5,269)(B)
46,63945,83739,522
34,394
5,165
−
6,278
801
801
244
57
−
499
26,191
12,417
11,898
1,875
20,447

4,670−
15,177(1,644)−(5,269)6,315−
20,447

(754)
(143)
1,601
1,666
−
−
(64)
888
450
14,422
(41)
−
−
(32)
−
32
8
−

6,049
(63)
(4,737)(4,315)
−
(303)
(118)
888
450
779
(2,939)(3,011)
(265)
36
(45)
(81)
8
(309)

(6,803)
(80)
6,338
5,981
−
303
54
−
−
13,643
2,897
3,011
265
(69)
45
114
−
309

14,38142(464)
14,804(2,159)−(526)(1,633)

16,54142
61
16,437(Note) Based on “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting Practice Committee Statements No.14),“Reversal of Reserves for possible Loan losses” and “Recovery of write-off claims” have been recorded in Net non-recurrent gains (losses)
beginning with this interim period. However retroactive adjustment was not made for the previous interim period.

8

Reference (Credit related costs)【The Ashikaga Bank, Ltd.(Non-consolidated basis)】(Millions of yen)
First
half
FY 2010 (B)First half FY 2011

Item

(A)

Provision for general reserve for possible loan losses①
Disposal of non-performing loans②
Write-off amount of loans
Provision for specific reserve for possible loan losses
Losses on sales of loans
Provision for reserve for contingent losses
Reversal of reserve for possible loan losses③
Reversal of general reserve for possible loan losses
Reversal of specific reserve for possible loan losses
Recovery of written-off claims④
Total ①＋②−③−④(A)-(B)
−
1,601
1,666
−
−
(64)
888
1,868
(979)
450
262

−
(4,737)(4,315)
−
(303)
(118)
(2,122)(2,368)245
185(2,799)Reference（Consolidated Income Status）【Ashikaga Holdings Co., Ltd.】

−
6,338
5,981
−
303
54
3,011
4,236
(1,224)265
3,062(Millions of yen)
First

First half FY 2011

Item

(A)
44,19833,281
5,781
−
5,134
32,331
1,647
93
454
(388)
−
128
10,507(41)−−
10,466305(451)
10,612−
10,612

Consolidated gross business profit
Net interest income
Net fees and commissions
Net trading income
Net other business income
General and administrative expenses
Write-off and reserve expenses of loans①
Reversal of reserve for possible loan losses②
Recovery of written-off claims③
Gains (losses) on stocks
Equity in gains (losses) of affiliated companies
OthersOperating Profit
Special gains (losses)
Reversal of reserve for possible loan losses②
Recovery of written-off claims③
Net profit before income taxes
Corporate, inhabitant, business taxes
Corporate tax adjustments, etc.
Income before minority interests
Minority interests
Net profit(A)-(B)(3,587)(1,659)(164)−(1,763)
2,041(4,793)
93
454
(308)
−
143
(453)
(1,832)(1,984)(271)(2,285)(5)(600)(1,680)−(1,680)half

FY 2010 (B)47,78634,941
5,945
−
6,898
30,290
6,440
−
−
(80)
−
(14)
10,960
1,791
1,984
271
12,751
310
148
12,292−
12,292(Note) 1. Consolidated gross business profit=(Interest income-Interest expenses)+(Fees and commissions income-Fees and commissions expenses)+(Trading income-Trading expenses)+(Other business income-Other business expenses)
2. Based on “Practical Guidelines on Accounting Standards for Financial Instruments” (JICPA Accounting Practice Committee Statements No.14),“Reversal of Reserves for possible Loan losses” and “Recovery of write-off claims” have been recorded in other operating income beginning withthis interim period. However retroactive adjustment was not made for the previous interim period.

1,099

Credit related costs (①−②−③)(3,085)

4,184

Reference（Number of Consolidated Subsidiaries）【Ashikaga Holdings Co., Ltd.】First half
FY2010 (B)First half FY 2011

Item

(A)

Number of consolidated subsidiaries
Number of affiliated companies applicable to the equity method9(A)-(B)
7
−

−
−

7
−

2. Net Business Income【The Ashikaga Bank, Ltd. (Non-consolidated basis）】(Millions of yen)First half FY 2011

Item
Net business income (before provision for reserve for possible loan losses)

Per head (in thousands of yen)
Net business income
Per head (in thousands of yen)(A)
15,177
5,549
15,1775,549(A)-(B)(5,269)(2,091)(5,269)(2,091)First half
FY 2010(B)20,447
7,641
20,447
7,641

3. Interest Rate Spread【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item (Whole bank operations)

(%)
First

First half FY 2011

(A)
1.47
1.77
0.83
1.26
0.09
0.10
0.21

Average yield on interest earning assets①
Average yield on loans and bills discounted
Average yield on securities
Average yield on interest bearing liabilities②
Average yield on deposits and negotiable certificates of deposit

Average yield on call money and borrowed money
Average interest rate spread①−②(A)-(B)(0.10)(0.14)
0.00
0.00(0.03)
0.01(0.10)

half
FY 2010 (B)

1.57
1.91
0.83
1.26
0.12
0.09
0.31
(%)

Item (Domestic operations)First

First half FY 2011

(A)
1.47
1.77
0.82
1.24
0.09
0.23

Average yield on interest earning assets①
Average yield on loans and bills discounted
Average yield on securities
Average yield on interest bearing liabilities②
Average yield on deposits and negotiable certificates of deposit

Average interest rate spread①−②(A)-(B)(0.10)(0.14)
0.00
0.00(0.02)(0.10)

half

FY 2010 (B)

1.57
1.91
0.82
1.24
0.11
0.33

4. Gains and Losses on Securities【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item
Gains (losses) on bonds（Japanese government bonds, etc.）
Gains on sales
Gains on redemption
Losses on sales
Losses on redemption
Write-offs
Gains (losses) on stocks
Gains on sales
Losses on sales
Write-offs

10(Millions of yen)
First

First half FY 2011

half

4,670
4,670
−
−
−
−

(A)-(B)(1,644)(1,644)−−−−

FY 2010 (B)

(143)
115
−
258

(63)
112
(68)
244

(80)
2
68
14

(A)

6,315
6,315
−
−
−
−

5. Capital Adequacy Ratio（Domestic standard）【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item

As of Sep 30,
2011

(A)
Capital adequacy ratio
Tier 1 Capital ①
Tier 2 Capital ②
General reserve for loan losses
qualified as capital
Deductions ③
Capital ①＋②−③
Risk assets(Millions of yen)

(A-B)

(A-C)

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

8.69%
197,741
15,3050.62%
14,804(35)

0.52%
13,75367

8.07%
182,936
15,341

8.17%
183,987
15,23715,305(35)

67

15,341

15,237−
213,0462,448,907−
14,768(5,736)−
13,821
10,842−
198,278
2,454,644−
199,225
2,438,065【Ashikaga Holdings Co., Ltd. (Consolidated basis)】
Item

(A)
Capital adequacy ratio
Tier 1 Capital ①
Tier 2 Capital ②
General reserve for loan losses
qualified as capital
Subordinated debts(Portion of subordinated debts not
qualified as capital)
Deductions ③
Capital ①＋②−③
Risk assets(Millions of yen)

As of Sep 30,
2011

(A-B)

(A-C)

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

9.51%
137,337
93,8080.88%
13,713
6,809

0.90%
14,837
7,463

8.63%
123,623
86,9998.61%
122,500
86,344

15,140(47)

45

15,187

15,09480,000−−80,00080,000(1,331)

6,856

7,418

(8,188)(8,749)681
230,464
2,422,417(43)
20,566(7,612)(36)
22,337
7,265

724
209,898
2,430,030

718
208,127
2,415,151

6. Return on Equity【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item
Net business income basis (before provision for general reservefor possible loan losses)
Net business income basis
Net profit basis(%)

First half FY2011

(A)
14.94

(A)-(B)(5.91)

14.94
14.57

(5.91)(2.19)First half
FY 2010(B)

20.85
20.85
16.76

*A denominator (Net average assets) is calculated as follows: (Net assets at the beginning of period excludes
subscription rights to shares + Net assets at term-end excludes subscription rights to shares)/2

11

Ⅲ Status of Loans

1. Risk-monitored Loans【The Ashikaga Bank, Ltd. (Non-consolidated basis)】(1)Risk-monitored loans
Item

(A)
Loans to bankrupt borrowers
Non-accrual delinquent loans
Loans past due 3 month or more
Restructured loans
Total risk-monitored loans(Reference)Amount of partial direct write-off
executed
Total loans(Millions of yen)

As of Sep 30,
2011

(A-B)

(A-C)

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

4,487
81,34060
33,826
119,71496(6,979)
41
7,779
937

(2,989)(15,633)(150)
10,399(8,374)

4,390
88,31918
26,046
118,776

7,476
96,973
211
23,427
128,088

25,251

1,795

1,120

23,45624,1303,429,272(44,016)

73,0353,473,289

3,356,237

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

(2)Ratio of Risk-monitored loans to total loans
Item

(%)

As of Sep 30,
2011

(A)
Loans to bankrupt borrowers
Non-accrual delinquent loans
Loans past due 3 month or more
Restructured loans
Total risk-monitored loans

(A-B)
0.13
2.37
0.00
0.98
3.49

0.01
(0.17)
0.00
0.24
0.08

(A-C)
(0.09)(0.51)
0.00
0.29(0.32)

0.12
2.54
0.00
0.74
3.41

【Ashikaga Holdings Co., Ltd. (Consolidated basis)】(1)Risk-monitored loans
Item(Reference)Amount of partial direct write-off
executed
Total loans(Millions of yen)

As of Sep 30,
2011

(A)
Loans to bankrupt borrowers
Non-accrual delinquent loans
Loans past due 3 month or more
Restructured loans
Total risk-monitored loans

(A-B)

0.22
2.88
0.00
0.69
3.81

(A-C)

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

4,614
82,94760
33,826
121,448

60(6,767)
41
7,779
1,114

(2,952)(15,635)(150)
10,399(8,339)4,553
89,71418
26,046
120,333

7,566
98,582
211
23,427
129,788

28,4481,476

642

26,97227,8053,430,717(43,911)73,014

3,474,628

3,357,703

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

(2)Ratio of Risk-monitored loans to total loans
Item

(A)
Loans to bankrupt borrowers
Non-accrual delinquent loans
Loans past due 3 month or more
Restructured loans
Total risk-monitored loans(%)

As of Sep 30,
2011

(A-B)
0.13
2.41
0.00
0.98
3.54

12

0.00
(0.17)
0.00
0.24
0.08

(A-C)
(0.09)(0.52)
0.00
0.29(0.32)

0.13
2.58
0.00
0.74
3.46

0.22
2.93
0.00
0.69
3.86

2. Reserve for Possible Loan Losses【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item

(A)
Reserve for possible loan losses
General reserve for possible loan losses
Specific reserve for possible loan losses

Reserve for specific foreign debtors(Millions of yen)

As of Sep 30,
2011

(A-B)

43,82427,702
16,122−(A-C)(6,393)(1,868)(4,525)−(15,606)(3,238)(12,368)−

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

50,21729,57020,647−【Ashikaga Holdings Co., Ltd. (Consolidated basis)】
Item

General reserve for possible loan losses
Specific reserve for possible loan losses

Reserve for specific foreign debtors(Millions of yen)

As of Sep 30,
2011

(A)
Reserve for possible loan losses(A-B)

48,53427,886
20,648−59,43030,94028,490−(A-C)(6,562)(1,868)(4,693)−(15,788)(3,257)(12,530)−

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

55,09729,75525,342−64,322
31,14433,178−

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

3. Ratio to Reserve for Total Risk-monitored Loans【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item

(%)

As of Sep 30,
2011

(A)

Before partial direct write-off

(A-B)
47.57
36.40

After partial direct write-off(4.28)(5.81)(A-C)(7.35)(9.89)

51.85
42.21

54.92
46.29

As of Mar 31,
2011

As of Sep 30,
2010

(B)

(C)

【Ashikaga Holdings Co., Ltd. (Consolidated basis)】
Item

As of Sep 30,
2011

(A)
Before partial direct write-off
After partial direct write-off

(%)

(A-B)
51.28
39.75

13

(4.49)(5.97)(A-C)(7.21)(9.70)

55.77
45.72

58.49
49.45

4. Loans subject to mandatory disclosure under the Financial Reconstruction Law【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item

(A)

(A-B)

(A-C)

14,602(2,916)(4,421)

17,51919,024

71,48633,887
119,976
3,340,607
3,460,583(3,973)7,821
930(43,811)(42,880)(14,458)
10,248(8,631)80,456
71,82475,46026,065
119,0453,384,418
3,503,463

85,94523,638
128,6073,260,150
3,388,758

25,251

1,795

1,120

23,45624,130Bankrupt and substantially bankrupt
claimsDoubtful claims
Claims requiring supervision
Subtotal ①
Normal claims
Total(Millions of yen）
As of Mar As of Sep
31, 2011
30, 2010

As of Sep 30,
2011(Reference) Amount of partial direct
write-off executed(B)【Ashikaga Holdings Co., Ltd. (Consolidated basis)】
Item
Bankrupt and substantially bankrupt
claimsDoubtful claims
Claims requiring supervision
Subtotal
Normal claims
Total(Reference) Amount of partial direct
write-off executed(Millions of yen）
As of Mar As of Sep
31, 2011
30, 2010

As of Sep 30,
2011

(A)

(C)

(A-B)

(A-C)

(B)

(C)

16,455(2,719)(4,394)

19,174

20,84971,63533,887
121,977
3,342,701
3,464,678(3,987)
7,821
1,113(44,332)(43,218)(14,464)
10,248(8,609)80,244
71,63575,622
26,065
120,863
3,387,034
3,507,897

86,09923,638130,587
3,262,456
3,393,043

28,4481,476

642

26,97227,805

5. Coverage of loans subject to mandatory disclosure under the Financial
Reconstruction Law【The Ashikaga Bank, Ltd. (Non-consolidated basis)】（Millions of yen）
Item
Coverage amount ②
Portion covered by reserve
Portion covered by collateral andguarantees
Reserve for specific debtors

As of Sep 30,
2011

As of Mar31, 2011

As of Sep
30, 2010(A)
80,046
20,87059,175(A-B)(4,801)(3,139)
1,662

(A-C)
(16,133)(10,506)(5,626)(B)
84,84824,00960,838(C)
96,18031,37764,802

−

−

−

−

−

66.71

(4.56)(8.07)

71.27

74.78

(%)

Coverage ratio ②／①

14

6. Loan Portfolio(1) Classification of loans by type of industry【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item
Total
Manufacturing
Agriculture / Forestry
Fishery
Mining / Quarrying of stone / Gravel

Construction
Electricity, gas and water
Telecommunication
Transportation / Postal activities
Wholesale / Retail services
Financial and insurance services
Real estate / Goods rental and leasing

Services
Local government
Others（Millions of yen）
As of Mar As of Sep
31, 2011
30, 2010

As of Sep 30,
2011

(A)

(A-B)

3,429,272
522,228
15,965544
4,565
135,904
19,20839,99687,816
395,082
112,998
325,879
313,961
274,214
1,180,901(44,017)(5,736)(3,722)(102)(382)(14,675)(2,749)(1,093)(3,579)(3,150)17,30332,290(20,646)(51,373)
13,597(A-C)
73,035454(6,069)20(9)(11,076)(2,632)
20,440(2,315)(2,038)16,99554,224(2,115)
1,555
5,600

(2) Classification of risk-monitored loans by type of industry【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item
Total
Manufacturing
Agriculture / Forestry
Fishery
Mining / Quarrying of stone / Gravel

Construction
Electricity, gas and water
Telecommunication
Transportation / Postal activities
Wholesale / Retail services
Financial and insurance services
Real estate / Goods rental and leasing

Services
Local government
Others

(A-B)

119,71428,490534−
52
14,224
2,006
311
2,272
18,3302,055
18,075
17,780−15,580

937
2,757
(418)
−
43
2,723
1,998
(10)
(381)
(1,119)(3,638)2,114(2,055)
−
1,073

(A-C)
(8,374)(6,545)
(386)
−
52
1,780
1,996
(83)
(241)
1,044
(7,271)
3,019
(41)
−
(1,698)(3) Individual loans【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item
Individual loans
Housing loans
Other loans(A-B)

1,232,218
1,195,183
37,035

4,847
6,962(2,115)3,473,289
527,964
19,687646
4,947
150,579
21,95741,08991,395398,232
95,695
293,589334,607
325,587
1,167,304

3,356,237
521,774
22,034524
4,574
146,980
21,84019,556
90,131
397,120
96,003
271,655
316,076
272,659
1,175,301

(B)

(C)

118,776
25,732953−
911,5018
321
2,654
19,4495,694
15,96019,836−
16,654

(A-C)
4,689
8,755
(4,066)(B)(C)

1,227,371
1,188,221
39,1501,227,529
1,186,428
41,101

As of Mar31, 2011(%）
As of Sep
30, 2010(B)(C)(4) Loans to small-and-medium-sized enterprises【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item
Ratio to total loans and bills discounted

As of Sep 30,
2011

(A)

(A-B)
74.16

15

0.12

128,088
35,035920−−
12,4449394
2,514
17,285
9,326
15,055
17,822−
17,278（Millions of yen）
As of Mar As of Sep
31, 2011
30, 2010

As of Sep 30,
2011

(A)

(C)

（Millions of yen）
As of Mar As of Sep
31, 2011
30, 2010

As of Sep 30,
2011

(A)

(B)

(A-C)
(1.80)

74.04

75.96

7. Loans to Entities Overseas by Country【The Ashikaga Bank, Ltd. (Non-consolidated basis)】(1) Specific overseas loans
Not applicable(2) Loans to Asian Countries
Item(Millions of yen)
As of Mar As of Sep
31, 2011
30, 2010

As of Sep 30, 2011

(A)
China

(A-B)
306
−
306
−

(Risk-monitored loans included)
Total(Risk-monitored loans included)

(26)
−
(26)
−

(A-C)

(B)

(28)
−
(28)
−

(C)
332
−
332
−

335
−
335
−

(3) Loans to Latin American Countries
Not applicable(4) Loans to Russia
Not applicable

8. Balance of Deposits and Loans【The Ashikaga Bank, Ltd. (Non-consolidated basis)】
Item

(A)
Deposits
Deposits(Annual or semiannual average)

Loans
Loans
(Annual or semiannual average)(Millions of yen)
As of Mar As of Sep
31, 2011
30, 2010

As of Sep 30, 2011

(B)

(C)

4,524,062(A-B)(15,483)

159,373

4,539,546

4,364,689

4,522,592

152,556

177,593

4,370,035

4,344,999

3,429,272(44,016)

73,0353,473,289

3,356,237

3,396,449

56,606

81,2703,339,842

3,315,178

16

(A-C)

Ⅳ Valuation Gains (Losses) on Securities
1. Valuation Standards of Securities
Market value method (Valuation differences are recognized asgains or losses and stated in statement of income）

Trading purpose securities
Securities held to maturity

Amortized cost method

Other securities (available-for-sale securities)

Market value method (Valuation differences are stated in net
assets of balance sheet)

Stocks of subsidiaries and affiliated companies

Cost accounting method

2. Unrealized Valuation Gains (Losses) on Other Securities (available-for-sale securities)【The Ashikaga Bank, Ltd. (Non-consolidated basis)】(Millions of yen)
As of Sep 30, 2011

As of Mar 31, 2011
Unrealized valuation
gains (losses)

Unrealized valuation gains (losses)
(A-B)

(A-C)

Valuation
gains

Valuation
losses

3,953

2,584

(419)

3,960

6

(A)
Held-tomaturity

Valuation
gains

Valuation
losses

1,369

1,382

13

(B)

As of Sep 30, 2010
Unrealized valuation
gains (losses)
Valuation
gains

Valuation
losses

4,372

4,393

20

(C)

Bonds

3,936

2,602

(368)

3,936

−

1,334

1,334

−

4,305

4,305

−

Others

17

(18)

(50)

23

6

35

48

13

67

87

20

Other
(available-forsale)

9,647

(325)

(9,187)

16,530

6,883

9,972

17,1697,196

18,83525,085

6,250

Stocks4,614(3,319)(1,448)

6,013

1,399

7,933

8,958

1,025

6,062

7,313

1,250

Bonds

10,343

3,961(7,234)

10,516

172

6,381

8,196

1,815

17,577

17,760183

Others(5,310)

(968)

(505)

1

5,311

(4,341)

13

4,355(4,805)10

4,816

13,601

2,258(9,606)

20,491

6,890

11,342

18,551

7,209

23,20829,478

6,270

4,614

(3,319)(1,448)

6,013

1,399

7,933

8,958

1,025

6,062

7,313

1,250

Bonds

14,2796,564(7,603)

14,452

172

7,715

9,531

1,815

21,88322,066

183

Others(5,293)

(986)

(555)

25

5,318

(4,306)62

4,368(4,737)

98

4,836

Total
Stocks(Note) Stocks in other securities (available-for-sale securities) that have market prices are stated at their average market prices
during the final month of the fiscal year, and bonds and others that have market prices are stated at their fiscal (first halffiscal) year-end market prices.

【Ashikaga Holdings Co., Ltd. (Consolidated basis)】
As of Sep 30, 2011

As of Mar 31, 2011
Unrealized valuation
gains (losses)

Unrealized valuation gains (losses)(A)
Held-tomaturity

(A-B)

(A-C)

Valuation
gains(Millions of yen)

Valuation
losses(B)

Valuation
gains

Valuation
losses

As of Sep 30, 2010
Unrealized valuation
gains (losses)(C)

Valuation
gains

Valuation
losses

3,953

2,584

(419)

3,960

6

1,369

1,382

13

4,372

4,393

20

Bonds

3,936

2,602

(368)

3,936

−

1,334

1,334

−

4,305

4,305

−

Others

17

(18)

(50)

23

6

35

48

13

67

87

20

Other
(available-forsale)

4,845

(107)

(7,649)15,261

10,416

4,952

14,2309,277

12,49521,966

9,471

Stocks(2,116)(2,971)

404

4,600

6,717

855

5,754

4,899

(2,521)

3,809

6,330

Bonds

10,4883,832(7,479)10,661

172

6,655

8,470

1,815

17,967

18,150183

Others(3,526)

(968)

(574)

0

3,526

(2,557)

5

2,563(2,951)

6

2,958

8,799

2,477

(8,068)19,222

10,422

6,322

15,613

9,291

16,86826,3609,492

Stocks(2,116)(2,971)

404

4,600

6,717

855

5,754

4,899

(2,521)

3,809

6,330

Bonds

14,424

6,435(7,848)

14,597

172

7,989

9,805

1,815

22,27322,456

183

Others(3,508)

(986)

(624)

23

3,532

(2,522)53

2,576(2,884)

94

2,978

Total

(Note) Stocks in other securities (available-for-sale securities) that have market prices are carried at their average market prices
during the final month of the fiscal year, and bonds and others that have market prices are carried at their fiscal (first halffiscal) year-end market prices.

17