KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2019

Breakdown of loan balances by business type

(Unit : number, million yen)

Year ended March 2018Number ofborrowers

Manufacturing

Componentratio

Number ofborrowers

Loanbalance

Componentratio

123,973

4.83%

2,611

126,753

4.76%

46588

0.02%

45548

0.02%

8

1,021

0.03%

8

1,391

0.05%

104,459

4.07%

3,495

105,703

3.96%

2,614

Agriculture, forestryMining, quarrying, sand and gravel gathering

Construction

3,454

LoanbalanceYear ended March 2019

Electricity, gas, heat supply, water20414

0.01%

28698

0.02%

Telecommunications

195

4,941

0.19%

202

5,224

0.19%

Transportation, postal industry

313

25,2850.98%

338

26,7991.00%

Wholesale business

1,431

75,150

2.92%

1,412

75,4502.83%

Retail business

1,663

51,868

2.02%

1,642

49,696

1.86%

Finance, insuranceReal estateRental industry

68

94,321

3.67%

68

111,463

4.18%

5,200

511,01919.91%

5,425

562,939

21.14%

38

4,722

0.18%

38

3,942

0.14%

Scientiﬁc research, specialist/technical services

431

7,491

0.29%

441

8,001

0.30%Accommodation industry

104

16,0130.62%

124

16,112

0.60%

1,218

26,330

1.02%

1,234

24,9820.93%

Lifestyle-related service industries,entertainment industry

463

39,2261.52%

490

37,502

1.40%

Education, study support industry

123

13,4970.52%

124

13,5650.50%

59,9832.33%

831

58,155

2.18%

Restaurant industry

Medicine, welfare

759

Other services

1,304

46,591

1.81%

1,378

52,098

1.95%

Subtotal

19,452

1,206,900

47.03%

19,934

1,281,029

48.11%

24

141,2845.50%

26

154,042

5.78%

Individual ( tax payment funds, etc. )141,690

1,217,650

47.45%

137,801

1,227,635

46.10%

Total

161,166

2,565,835

100.00%157,761

2,662,707

100.00%Local public entitieshousing, consumption,(Notes) 1. Business categories are based on the large classiﬁcation of Japan Standard Industry Classiﬁcation.
2. Loans outside Japan are classiﬁed in the same manner as those in Japan and are included within their respective business category.

Fund management and securities businessAverage balance by type of security(Unit : million yen)

Year ended March 2018Year ended March 2019

Changes

Japanese government bonds

411,385

339,433△71,951

Local government bonds

346,129

387,853

41,724

Corporate bonds

558,962545,063△13,899

Stocks34,82541,986

7,160

Foreign securities

210,600

228,024

17,423

Other securitiesTotal

62,861

76,442

13,581

1,624,765

1,618,804△5,960

Other IndicatorsForeign exchange transaction handling performanceYear ended March 2018

(Unit : million US$)Year ended March 2019

Changes

Export exchange

123

110

△12Total

304

298△5Import exchange

188

181

Foreign currency denominated assets balanceBalance of foreign currency denominated assets7(Unit : million US$)Year ended March 20181,308

Year ended March 20191,471

3Changes162

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2019

Status of Loan Assets

Self-assessment and depreciation/allowanceThe Bank has established standards in accordance with the ﬁnancial inspections manual to ensure the health of assets. It has alsorigorously implemented self-assessment in order to scrutinize its own assets individually, as well as depreciation and allowancein accordance with it.
In the self-assessment, the Bank assesses the repayment capacity of borrowers based on their ﬁnancial condition, cash position andproﬁtability. In accordance with the results of the assessment, they are classiﬁed into one of ﬁve groups consisting of Normalentities, Entities requiring caution, Potentially bankrupt entities, Entities bankrupt in substance and Bankrupt entities. Then,the Bank classiﬁes each individual loan into one of four groups consisting of Unclassiﬁed, Classiﬁcation II, Classiﬁcation III andClassiﬁcation IV, based on the degree of the risk inherent in collection of the loan or based on the risk of damage to the value ofthe loan. The Bank has fully established regulations for depreciation and allowance. It processes based on the classiﬁcation ofborrowers and loans.

Self-assessment, disclosed loans, and coverage conditions (non-consolidated basis)

UnclassiﬁedBankruptentities

Self-assessment

Disclosure based on the FinancialReconstruction Law

Classiﬁcation II Classiﬁcation III Classiﬁcation IV*

Classiﬁcation(loans and other claims)

23

418−

0Entities bankrupt63in substance

439−

19

Potentiallybankrupt 565entities

24324080

Entitiesrequiring 3,025caution

696

Normalentities 23,009

23,009Total

Year endedMarch 2019

Bankrupt andquasi-bankruptloans and claims

86

Doubtful loansand claims

565

Substandardloans and claims

26

Subtotal

678

2,329

(Unit : 100 million yen)

Risk management loans(loans)

Classiﬁcation

Year endedMarch 2019

Loans tobankrupt entities

23

Overdue loans

628

Loans overdue for3 months or more−

Loans with easedlending conditions

26

Subtotal

678

Coverage conditionsCollectible amountby collateral,guarantees, etc.

Reserve ofthe Bank

Coverageratio

6719

100.00%484

5695.77%20181.31%

571

7895.74%

Normal loansand claims

26,01820,7034279.73%

Total

26,697

21,27412080.14%

26,686* Category IV assessment oﬀ balance due to amortization is 400 million yen.
* The value of Disclosure based on the Financial Reconstruction Law includes the value of privately placed bonds that the Bank guarantees.
In addition, Coverage conditions show ratios in proportion to the values shown under Disclosure based on the Financial Reconstruction Law .
* Coverage ratio is rounded to the third decimal place.

Explanation of termsSelf-assessmentBankrupt entities Borrowers who are undergoing legal andformal bankruptcy proceedings

Disclosed loans

Entities bankruptin substance

Borrowers who are not undergoing legal and formalbankruptcy proceedings, but who are in seriousﬁnancial diﬃculties and bankrupt in substance

Financial Reconstruction Law(loans and other claims)Bankrupt andBankrupt entities and Entitiesquasi-bankrupt bankrupt in substanceloans and claims in self-assessment

Potentiallybankruptentities

Borrowers who are not bankrupt at present,but who are in ﬁnancial diﬃculties, whosemeasures for management improvement are notprogressing well, and who are recognized to behighly likely to become bankrupt in the future(including borrowers who are receiving support)

Doubtful loansand claims

Entitiesrequiringcaution

Borrowers who require caution for themanagement of loans in the futurebecause business is sluggish andunstable or they have problems intheir ﬁnancial conditions

Substandard loansand claims

Normalentities

Borrowers whose business conditionsare good and who have no problems intheir ﬁnancial conditions

Potentially bankrupt entitiesin self-assessment

7Loans tobankrupt entities

Overdueloans

Bankrupt entitiesin self-assessment

Entities bankrupt insubstance andPotentially bankruptentities inself-assessmenti) Loans for which principal and interestpayments are overdue for 3 months or more

Loans overdue for 3 months or moreii) Loans with eased lending conditionssuch as a reduction in interest or amoratorium on principal repayment, etc.

Loans with eased lending conditions

Normal entities in self-assessment andEntities requiring caution other thansubstandard loans and claims

Normal loansand claims

Risk management loans(loans)