Tokyo TY Financial Group, Inc.
Listed Code: 7173
(URL: http://www.tokyo-tyfg.co.jp/)
Listed Stock Exchange: TSE1
May 13, 2016

Consolidated Financial Reportfor the Fiscal Year Ended March 31, 2016
<Under Japanese GAAP>
Representative: Keizo Ajioka, President
Responsible person for inquiries: Arihito Suito, General Manager, Corporate Planning Division
Telephone: +81-3-5341-4301
Date of Ordinary General Meeting of Shareholders: June 29, 2016
Date of submission of annual security report: June 29, 2016
Date to start dividend payment: June 13, 2016
Preparation of supplementary material on financial results: Yes
Holding of financial results presentation meeting: Yes(for institutional investors and securities analysts)
Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Operating Performance for the Fiscal Year Ended March 31, 2016
(From April 1, 2015 to March 31, 2016)(1) Results in consolidated operations(Percentages represent year-on-year changes.)
Ordinary income

Profit attributable to owners ofparentOrdinary profit(¥ million)(%)(¥ million)(%)(¥ million)(%)

Fiscal year ended March 31, 2016

79,58322.3

14,453Fiscal year ended March 31, 2015

65,043–

11,809

22.3

9,412

(83.5)–

57,290–(Note) Comprehensive income:Fiscal year ended March 31, 2016: ¥2,390 million (96.6 %)Fiscal year ended March 31, 2015: ¥ 70,500 million – %Profit attributable toProfit attributable toowners of parent
owners of parent
per share (Diluted)
per share (¥)(¥)

Net income to
net assets (%)

Ordinary profit to
Ordinary profit toordinary income
total assets (%)(%)

Fiscal year ended March 31, 2016
323.84311.894.6
0.2
18.1
Fiscal year ended March 31, 2015
2,638.39
2,561.38
28.3
0.2
18.1
(Reference) Gain on equity-method investments:
Fiscal year ended March 31, 2016: ¥189 million
Fiscal year ended March 31, 2015: ¥202 million(Note)
1: “Profit attributable to owners of parent” and “Comprehensive income” include gain on bargain purchase of ¥50,476 million.
2: As the Company was established on October 1, 2014, percentage changes from the fiscal year ended March 31, 2015 are notprovided.

(2) Consolidated financial position
Net assets tototal assets ratio(%)
203,216
3.9
202,580
4.0
As of March 31, 2015: ¥ 202,334 million

Total assets(¥ million)

Net assets
per share(¥)
6,982.00
6,959.92

Total net assets(¥ million)

As of March 31, 2016
5,112,540
As of March 31, 2015
4,943,828(Reference) Equity: As of March 31, 2016: ¥202,882 million(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year and non-controlling interests at the end of the period
subtracted from net assets, and the “Net assets to total assets ratio” is calculated by dividing equity by total assets at the end of the
fiscal year. Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio required for the Capital Adequacy
Ratio Notification.

(3) Consolidated cash flows
Cash flow fromoperating activities(¥ million)
Fiscal year ended March 31, 2016
Fiscal year ended March 31, 2015

Cash flow frominvesting activities(¥ million)

105,708
156,901

Cash flow fromfinancing activities(¥ million)

12,757(93,299)

Cash and cash
equivalents
at year-end(¥ million)(11,794)(12,066)

393,056
286,385

2. Dividends
Annual dividend per share (¥)

Total
dividends(full year)(¥ million)

Dividends ratio
to shareholders’equity(consolidated)(consolidated)(%)(%)
Payout ratio

First

SecondThird

Fiscalquarterquarterquarter

year-end

–

–

–

30.00

30.00

872

1.1

0.4

ended March 31, 2016

–

30.00

–

30.00

60.00

1,743

18.5

0.8

ending March 31, 2017 (Forecast)

–

30.00

–

30.00

60.00

Fiscal year
ended March 31, 2015

Annual7.2(Note)As the Company was established on October 1, 2014, the interim dividend for the fiscal year ended March 31, 2015 was not paid by
the Company.

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2017
(From April 1, 2016 to March 31, 2017)(Percentages represent increases or decreases from the previous year for the full-year results and from the same quarter in the previous year for quarterly results.)

Ordinary profit(¥ million)(%)

Profit attributable to ownersof parent(¥ million)(%)

Profit attributable toowners of parent per share
(¥)

3,900
(41.7)
21,700353.0711.93
Second-quarter period (cumulative)
8,900(38.4)
25,100166.6
823.48Full year(Note)“Profit attributable to owners of parent” for the second-quarter period (cumulative) and full year include gain on bargain purchase of¥19,443 million.

* Notes(1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries
resulting in change in scope of consolidation): None
New subsidiaries: ___ (name of company(ies)
Excluded subsidiaries: ___ (name of company(ies)))(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a.
b.
c.
d.

Changes in accounting policies due to revisions to accounting standards: None
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatement of prior period financial statements after error corrections: None

(3) Number of shares issued (common stock)
a.

b.

c.

Total number of shares issued at the end of the period (including treasury stock)
March 31, 2016

29,227,826 shares

March 31, 2015

29,227,826 shares

Number of treasury stock at the end of the period
March 31, 2016

169,852 shares

March 31, 2015

156,450 shares

Average number of shares during the period
Fiscal year ended March 31, 2016

29,064,426 sharesFiscal year ended March 31, 2015

21,714,303 shares(Note)As the Company was established on October 1, 2014 through a joint share transfer, the average number of common shares
during the fiscal year ended March 31, 2015 was calculated based on the average number of shares of the Tokyo Tomin Bank,
Limited multiplied by its share transfer ratio for the period from April 1, 2014 to September 30, 2014 prior to the establishmentof the Company and the average number of common shares of the Company for the period from October 1, 2014 to March 31,
2015.

(Reference) Non-consolidated Financial Statements
1. Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2016

(From April 1, 2015 to March 31, 2016)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)

Fiscal year ended March 31, 2016
Fiscal year ended March 31, 2015

Operating income

Operating profit(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)

(%)

2,927
2,383

22.8
–

2,196
2,034

7.9
–

2,034
2,024

0.4
–

1,961
1,957

0.2
–

Net income per share

Diluted net income
per share

(¥)

(¥)

Ordinary profit

Net income

Fiscal year ended March 31, 2016
67.47
66.85
Fiscal year ended March 31, 2015
66.99
65.19
(Note)As the Company was established on October 1, 2014, percentage changes from the fiscal year ended March 31, 2015 are notprovided.

(2) Non-consolidated financial position

As of March 31, 2016

Total assets(¥ million)

Total net assets(¥ million)

141,996

136,903

Net assets to total
assets ratio
(%)
96.3

Net assets
per share(¥)
4,709.77

141,793
136,68996.4
4,701.85
As of March 31, 2015
(Reference) Equity:
As of March 31, 2016: ¥136,856 million
As of March 31, 2015: ¥ 136,689 million(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year subtracted from net assets, and the “Net assets to total
assets ratio” is calculated by dividing equity by total assets at the end of the fiscal year. Note that this “Net assets to total assets ratio”
is not the net assets to total assets ratio required for the Capital Adequacy Ratio Notification.
* Indication regarding execution of audit proceduresThis financial report is exempt from the audit procedures pursuant to the Financial Instruments and Exchange Law. At the time of
disclosure of this financial report, the audit procedures to the Consolidated Interim Financial Statements and Non-consolidated
Interim Financial Statements pursuant to the Financial Instruments and Exchange Law are incomplete.
* Disclaimer and special note for referring to the forecast of operating performance
Forward-looking statements concerning financial forecasts contained in these materials are based on information available when theforecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these
forecasts will be achieved, and actual results may differ significantly from the forecasts due to a variety of factors.

* Dividend situation for class shares
The breakdown of dividend per share for class shares with different rights to those of common stock is as follows.
(Class II preferred shares)
Dividend per share (¥)
First quarter

Second quarter

Third quarter

Fiscal year-end

AnnualFiscal year ended March 31, 2015

–

–

–

–

–

Fiscal year ended March 31, 2016

–

–

–

–

–

Fiscal year ending March 31, 2017–18.364–18.36436.728(Forecast)(Notes)1. Because Class II preferred shares were issued on April 1, 2016, no information is provided for the fiscal year ended March 31,
2015 and the fiscal year ended March 31, 2016.
2. Amount paid per share: ¥20,000
3. Computation used to calculate dividend per share(1) Fiscal year ending March 31, 2017 (forecast)a. Computation
Dividend = amount paid per share x (Japanese yen TIBOR)
b. Japanese yen TIBOROn April 1, 2016 Japanese yen TIBOR (12-month maturity) = 0.18364%
c. Shares issued
2,000,000

Attached Materials
Index
1. Analysis of Operating Results and Financial Position(1)

Analysis of Operating Results ·································································

2(2)

Analysis of Financial Position·································································

3(3)

Basic Policy for Profit Distribution and Dividends for This Term and the Next Term ··3

2. Overview of the Tokyo TY Financial Group ························································

3

3. Management Policies(1)

Fundamental Management Policy ····························································(2)

Medium- and Long-term Business Strategies and5Management Indicators to be Targeted ·······················································

5

Outstanding Issues ··············································································

5

4. Basic Views on Selection of Accounting Standards················································

6(3)

5. Consolidated Financial Statements(1)

Consolidated Balance Sheets ··································································(2)

Consolidated Statements of Income and

7-8

Consolidated Statements of Comprehensive Income ······································

9 - 10(3)

Consolidated Statements of Changes in Net Assets ········································

11 - 12(4)

Consolidated Statements of Cash Flows ·····················································

13 - 14(5)

Notes on Premise of Going Concern ·························································

15

(6)

Accounting Standards Not Yet Applied ······················································

15

(7)

Changes in Presentation ········································································

15

(8)

Notes to Consolidated Financial Statements ················································

15 - 17

6. Non-consolidated Financial Statements(1)

Non-consolidated Balance Sheets ····························································

18

(2)

Non-consolidated Statements of Income·····················································

19

(3)

Non-consolidated Statements of Changes in Net Assets···································

20

(4)

Notes on Premise of Going Concern ·························································

20

7. (Reference) Overview of Major Consolidated Subsidiary Operating Performance(1)

Non-consolidated Financial Statements (The Tokyo Tomin Bank, Limited) ···········

21 - 26(2)

Non-consolidated Financial Statements (The Yachiyo Bank, Limited) ·················

27 - 32

8. Changes to Directors····················································································

33* Financial Results for the fiscal year ended March 31, 2016 Supplementary Information

11. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results(Operating results of the Tokyo TY Financial Group)
Looking back at the Japanese economy during the consolidated fiscal year ended March 31, 2016,
there was a continuation of the trend towards a gentle recovery, helped by improvements in corporate
profitability driving moderate increases in capital investment, and by personal consumption, which
remained firm against a backdrop of an improved environment for employment and income. On the other
hand, from the beginning of the year there has been a rise in factors exerting pressure on the economy,
including the slowing of overseas economies in emerging countries such as China as well as
commodity-exporting countries, falling stock prices, and the strengthening of the yen, all of which show
localized weakness in the move towards economic recovery.
In the Tokyo metropolitan area where the Group has its principal operational base, business for small
and medium-sized enterprises (SME) is expected to improve as a result of support from personal
consumption, driven by increases in foreign visitors to Japan and a better employment situation, as well
as by the prospect of the uplift from investment related to the hosting of the 2020 Tokyo Olympics andParalympics. However, there are concerns about the effect on consumer confidence and corporate
profitability of such factors as the decline in stock prices and the strengthening of the yen since thebeginning of the year. Moreover, the adoption of negative interest rates by the Bank of Japan has led to asense of worsening visibility with regard to the financial and economic environment going forward.
In this environment, consolidated ordinary income for the fiscal year ended March 31, 2016 came to¥79.5 billion, rising ¥14.5 billion year on year. Ordinary expenses rose by ¥11.8 billion over the previous
year to ¥65.1 billion, resulting in ordinary profit of ¥14.4 billion, up ¥2.6 billion year on year. Profit
attributable to the owners of parent declined by ¥47.8 billion compared to the previous consolidated fiscal
year, to ¥9.4 billion, but this was due to the inclusion of ¥50.4 billion in gains on bargain purchase in the
figure for the previous fiscal year.
Moreover, the Company was established on October 1, 2014, at which time, for the purposes ofaccounting for business combinations, The Tokyo Tomin Bank, Limited was deemed to be the acquiring
company. Accordingly the Group's operating results for the previous consolidated fiscal year consisted of
the acquiring company of The Tokyo Tomin Bank, Limited’s operating results for the period April 1,2014 to March 31, 2015, the operating results of The Yachiyo Bank, Limited for the period October 1,
2014 to March 31, 2015 and the operating results of the Company for the period October 1, 2014 toMarch 31, 2015, in addition to other corrections (such as gains on bargain purchase) required for the
consolidated settlement of accounts.
(Outlook for the next fiscal year)

The forecast of the consolidated operating performance for the fiscal year ending March 31, 2017 is asfollows.
Ordinary income of ¥8.9 billion
Profit attributable to owners of parent of ¥25.1 billion
In addition, profit attributable to owners of parent includes ¥19.4 billion of gains on bargain purchasearising from the business integration with ShinGinko Tokyo, Limited.
The forecast described above represents the judgment of management based on information currently
available, and may include uncertainties. Actual results may differ from the above due to changes incircumstances.

2(2) Analysis of Financial Position(Status of assets, liabilities, and net assets)
Total assets at the end of the current consolidated fiscal year rose ¥168.7 billion year on year to¥5,112.5 billion, while net assets increased by ¥600 million over the previous consolidated fiscal year toreach ¥203.2 billion.
With regard to major account balances, deposits were ¥4,502.1 billion, up ¥10.8 billion year on year,
while loans and bills discounted rose by ¥65.1 billion over the previous year to ¥3,359.9 billion andsecurities amounted to ¥1,210.0 billion, falling by ¥26.7 billion year on year.
(Status of cash flows)
During the current consolidated fiscal year, cash flows from operating activities came to ¥105.7 billion,
the main constituents of which were a net increase in outgoings from loans and bills discounted, while on
the other hand there was an increase in proceeds from a net increase in deposits and from cash received aspayables under securities lending transactions. Cash flows from investing activities were ¥12.7 billion due
to increased outgoings from purchases of securities, while proceeds from the sales of securities also rose.
Cash flows from financing activities were negative ¥11.7 billion due to redemptions of subordinatedbonds and the like. As a result, cash and cash equivalents rose ¥106.6 billion from the end of the previous
consolidated fiscal year to ¥393.0 billion.
(3) Basic Policy for Profit Distribution and Dividends for This Term and the Next Term
The Company’s basic policy is to work to maintain a sound financial position through sufficient andrelevant internal reserves in consideration of its public nature as a bank holding company while
prioritizing returns to shareholders as an important management issue as it provides ongoing and stabledividends.
In consideration of this policy, the Company will pay out dividends of ¥60 per share (an interim
dividend of ¥30 and a year-end dividend of ¥30) for the fiscal year ended March 31, 2016.
Note that an annual dividend of ¥60 per share (an interim dividend of ¥30 and a year-end dividend of¥30) is scheduled for the dividend for the fiscal year ending March 31, 2017 based on this policy. For
Class II preferred shares, in accordance with the provisions of the Articles of Incorporation, the scheduledannual dividend is ¥36.728 per share (an interim dividend of ¥18.364 and a year-end dividend of¥18.364).
2. Overview of the Tokyo TY Financial GroupThe Group (the Company and the Company’s affiliates) is composed of the Company, 11 consolidated
subsidiaries, and one affiliate (equity-method affiliate), and is engaged in business related to financial
services with a focus on banking services.
The Group’s only reporting segment is banking services, and the roles related to the Group’sbusinesses are as follows.
[Banking services]
The Tokyo Tomin Bank, Limited and The Yachiyo Bank, Limited provide services that include
deposit services, loan services, domestic exchange services, foreign exchange services, trading accountsecurities services, and securities investment services, which are positioned as the core businesses of theGroup through head offices, branches, etc. located in a business area centered around the Tokyo
Metropolis and the northeast of Kanagawa Prefecture.
In addition, both consolidated subsidiaries operate credit guarantee businesses.
[Others]
The other seven consolidated subsidiaries and one affiliate (equity-method affiliate) are engaged inservices ancillary to banking services such as computer-related services, information provision services,and credit card services, and work together with the Company to support the financial needs of customers.
The diagram on the following page illustrates the business portfolio, as described above.
3

(As of March 31, 2016)
Bankingbusiness

Head office, 72 branches, 5 offices
Tomin Credit Guarantee Co., Ltd.
(Guarantee operations including housing loans)(Domestic consolidated subsidiary)

The
Tokyo
Tomin
Bank,
LimitedTomin Computer System Co., Ltd.
(Commissioning of information processing work forcomputer calculations, commissioning of operations andmanagement of computer rooms)(Domestic consolidated subsidiary)(Consolidated
subsidiary)

Tomin Management Research Institute Co., Ltd.
(Consultation services concerning management, household
budgets, real estate, etc. for local companies and local
residents, acquisition, holding, and trading of securities)(Domestic consolidated subsidiary)
Other

Tomin Card Co., Ltd.
(Credit card services)(Domestic consolidated subsidiary)Tokyo TY
Financial
Group, Inc.

Tomin Business Consulting Shanghai Co., Ltd.
(Corporate management consulting services,trade information consulting services, investment consulting
services)(Overseas consolidated subsidiary)Tokyo TY Leasing Co., Ltd.*1(General leasing business)(Domestic equity-method affiliate)

Bankingbusiness

Head office, 78 branches, 5 offices
Yachiyo Credit Guarantee Co.,Ltd.
(Guarantee operations including housing loans)(Domestic consolidated subsidiary)The
YachiyoBank,
Limited(Consolidated
subsidiary)

Yachiyo Service Co.,Ltd.
(Building cleaning, maintenance, and management work;
procurement and management work for advertisingequipment, etc.)(Domestic consolidated subsidiary)
Other

Yachiyo Business Service Co.,Ltd.
(Email, bill collection, concentrated administrative services)(Domestic consolidated subsidiary)
Yachiyo Bank Credit Service Co.,Ltd.
(Credit card services)(Domestic consolidated subsidiary)

Notes:
1.
The name of Tomin Lease Co., Ltd. was changed to Tokyo TY Lease Co., Ltd. on April 1, 2015.
2.
The liquidation of Tomin-gin Office Support Center Co., Ltd. was completed on September 28, 2015 and so was omitted fromthe scope of consolidation from the consolidated interim settlement onward.
3.
Due to a business integration through an exchange of common stock, ShinGinko Tokyo, Limited became a consolidated
subsidiary of the Company on April 1, 2016.

4

3. Management Policies(1) Fundamental Management Policy
The Group is a financial group whose business philosophy is to be a financial group for small andmedium-sized enterprise customers and individual customers in the Tokyo metropolitan area that willcontribute to the development of local communities through comprehensive financial services. As aregional financial institution with its head office in Tokyo, in addition to aiming to secure a sustainablebusiness model for the future, we will leverage the largest network of financial outlets in the region tooffer small and medium-sized enterprises and individual customers sophisticated financial services suchas consulting and stable provision of funding, aiming to become the urban regional banking group mostfavored by customers in the Tokyo metropolitan area.
(2) Medium- and Long-term Business Strategies and Management Indicators to be Targeted
In the first stage of the “Tokyo TY Plan 2020” 2.5-year medium-term business plan running from
October 2014 to March 2017, the Group will work to strengthen services as a financial partner, expand its
sales base and regional finance function, promote improved management efficiency, and strengthen
profitability. The Group will work as one on initiatives including providing advanced consulting
capabilities through the promotion of the Club TY financial platform service, expanding the network of
local governments and related agencies, and consolidating headquarters functions and streamlining thenumber of employees in the head office.
Moreover, seeking to further boost the effects of the integration, the Group is considering and making
preparations to build a “one bank” structure as the outcome of the merger between the three banks of The
Tokyo Tomin Bank, Limited, The Yachiyo Bank, Limited, and ShinGinko Tokyo, Limited at some pointin the fiscal year ending March 2018.
With regard to the indicators targeted for the fiscal year ending March 2017 as announced on October
29, 2015 in “Tokyo TY Financial Group Business Plan,” we have revised the plan as follows to take into
account the impact of negative interest rates and of changes in the internal and external environment
surrounding the business integration between the Group and ShinGinko Tokyo, Limited.
In addition, we will consider the management indicators for the fiscal year ending March 2021 going
forward, after we have made a closer evaluation of the “one bank” structure for the three banks.
[Management Indicators to be Targeted]

Deposit balance (outstanding)
Loan balance (outstanding)Core business income
Net income

Fiscal year ending March 2017
(Revised target/Three banks
combined, non-consolidated)¥4,870 billion¥3,620 billion¥14.1 billion¥7.9 billion<Reference>
Target prior to revision¥4,550 billion¥3,350 billion¥16.5 billion¥10.0 billion

Note: In the above Management Indicators to be Targeted, the forecast of consolidated operating
performance for the fiscal year ending March 31, 2017 for the Company does not include ¥19.4
billion in gains on bargain purchase.
(3) Outstanding Issues
Looking forward, in the Tokyo metropolitan area where the Group has its principal operational base,as the aging of society progresses, we forecast that demand for services related to inheritance and tosuccessor planning at small and medium-sized enterprises will grow, and that against a backdrop of thefalling and aging populations in the regions, there will be a continuation of the move into the Tokyo
region by companies and people. Also, looking ahead to the hosting of the 2020 Tokyo Olympics andParalympics, in addition to expectations of large-scale redevelopment of transport infrastructure such as
roads, railways, and accommodation facilities, we believe that the increase in foreign visitors to Japan andthe accompanying increase in consumption and so on will provide a favorable following wind for a wide
range of industries.

5

In the Tokyo region, while there will be an expansion in such business opportunities, other financial
institutions will aggressively expand their operations in the Tokyo metropolitan area and competition in
the Group’s sales area is likely to intensify going forward. Moreover, the negative interest rate policy
adopted by the Bank of Japan will depress the earnings of financial institutions for the time being and theneed to reinforce earnings power is becoming more urgent.
In this difficult external environment, in order for the Group to link business opportunities to concrete
results and to achieve sustainable growth and development, one pressing issue is differentiating itself
from other financial institutions by working to share the know-how and strengths of the banks within theGroup to maximize synergies and further enhance integration effects.
With this in mind, on April 1 we welcomed ShinGinko Tokyo, Limited to the Group and took ourbusiness integration a step closer to its final form, aiming to build a “one bank” structure for thethree-bank merger in the fiscal year ending March 2018. Going forward, the Group will further strengthen
its cooperation with local governments such as the Tokyo Metropolitan Government as well as withrelated institutions while making full use of its customer base and its network of more than 160 financial
outlets to contribute to the growth of the local economy of the Tokyo region.
Also, we consider corporate governance to be one of the highest priority issues for management andwork to respect the views of stakeholders and will enhance the corporate governance function to facilitatetransparent, fair, and prompt decision-making during the course of business operations. With regard tocompliance, as well as building a corporate ethics structure that has as its core our social mission as aregional bank group, we will strive to be worthy of shareholders’ confidence, to be trusted by customers
and society, to make the nurturing of a corporate culture that respects compliance a basic policy, and toensure that our business is conducted fairly and appropriately.
4. Basic Views on Selection of Accounting Standards
Over the near term, the Group will prepare its consolidated financial statements based on J-GAAP
because the Group’s business activities are focused on Japan and to ensure that consolidated financial
statements can be compared across time.
In terms of the application of International Financial Reporting Standards (IFRS), an appropriate
response will be made in consideration of circumstances in Japan and overseas.

6

5. Consolidated Financial Statements(1) Consolidated Balance Sheets(¥ million)
As of March 31, 2015

As of March 31, 2016

AssetsCash and due from banks

298,834

405,539

Call loans and bills bought

28,93843,600

Monetary claims bought

3,012

4,202

Trading account securities

607

658

Securities

1,236,834

1,210,097

Loans and bills discounted

3,294,802

3,359,919

Foreign exchanges

7,731

6,531

Other assets

21,01829,258

Tangible fixed assets

53,61353,217

Buildings

13,47813,074Land

34,62534,547

Leased assets

973

1,101

Construction in progress

2,223

2,226

Other tangible fixed assets

2,313

2,266

Intangible fixed assets
Software

3,295

2,039

2,604

1,441

Leased assets

183

198

Other intangible fixed assets

507

399

Deferred assets

74

56

Net defined benefit assets

10,777

8,647

Deferred tax assets

6,570

7,035

Customers’ liabilities for acceptances and guarantees

6,630

5,860

(28,913)(24,122)

4,943,828

5,112,540

Reserve for possible loan losses
Total assets
Liabilities
Deposits

4,491,306

4,502,192

Negotiable certificates of deposit

27,03834,206

Payables under securities lending transactions

140,876

293,327

Borrowed money

7,409

7,425

Foreign exchange

139

68

Bonds payable

25,60016,000Bonds with subscription rights to shares

5,000

5,000

Other liabilities

30,01235,803

Reserve for employee bonuses

2,074

2,038

Net defined benefit liabilities

3,326

5,530

Reserve for directors’ retirement benefits

137

85

Reserve for point card certificates

51

53

Reserve for loss on interest repayments

14

14

Reserve for loss on dormant deposit repayments

844

988

Provision for contingent loss

740

659

Deferred tax liabilities

30

55

Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities

7

15

14

6,630

5,860

4,741,248

4,909,324(¥ million)

Net Assets
Common stock

As of March 31, 2015

As of March 31, 2016

20,00020,000Capital surplus

99,607

99,585Retained earnings

73,24580,913

Treasury stock

(544)

(594)

192,308

199,905

9,784

8,390

Total shareholders’ equity
Net unrealized gain on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income

2

6

(210)

(209)

17

11

432

(5,221)

10,026

2,977

Subscription rights to shares－

46

Non-controlling interests

245

286

Total net assets

202,580203,216

Total liabilities and net assets

4,943,828

5,112,540

8

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(¥ million)
Year ended
March 31, 2015

Year ended
March 31, 2016

Ordinary income

65,04379,583

Interest income

45,00355,840Interest on loans and discounts

37,87945,740Interest and dividends on securities

6,409

9,060

Interest on call loans and bills bought

145

204

Interest on receivables under securities borrowing transactions

Interest on deposits with banks
Other interest income
Fees and commissions

9

－

163

311

395

523

13,41015,832Other operating income

3,946

4,899

Other ordinary income

2,682

3,011

Gain on recovery of write-off claims

210

528

Others

2,472

2,482

Ordinary expenses

53,234

65,129Interest expenses

2,975

3,623

1,812

2,147

Interest on negotiable certificates of deposit

38

27

Interest on call money and bills sold00Interest on payables under securities lending transactions

117

664

Interest on borrowed money

212

131

Interest on corporate bonds

698

488

Interest on bonds with subscription rights to shares

53

107

Interest on deposits

Other interest expenses

42

56

Fees and commissions payments

2,895

3,424

209

363

General and administrative expenses

43,74954,269Other ordinary expenses

3,403

3,448

Other operating expenses

Provision of allowance for loan losses

721

1,103

2,681

2,345

Ordinary profit

11,80914,453Extraordinary income

50,476

391

0

258

Other ordinary expenses

Gain on disposal of non-current assets－

132

50,476

－

80

293

76

171

－

122

3

－

Profit before income taxes

62,205

14,551

Income tax – current

2,054

2,475

Income tax – deferred

2,815

2,638

Total income taxes

4,870

5,113

Profit57,335

9,437

44

24

57,2909,412

Gain on state subsidies, etc. received
Gain on bargain purchase
Extraordinary losses
Loss on disposal of fixed assets
Provision for special account for advanced depreciation of
fixed assets
Loss on step acquisitions

Profit attributable to non-controlling interests
Profit attributable to owners of parent

9Consolidated Statements of Comprehensive Income(¥ million)

ProfitOther comprehensive income

Year ended
March 31, 2015

Year ended
March 31, 201657,335

9,437

13,164(7,046)

7,966(1,284)

Deferred gains or losses on hedges

2

4

Revaluation reserve for land10Foreign currency translation adjustments

6

(5)

5,087

(5,654)

100

(108)

70,5002,390

70,465

2,363

34

26

Net unrealized gain on available-for-sale securities

Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests10

(3) Consolidated Statements of Changes in Net Assets(Year ended March 31, 2015)(¥ million)
Shareholders’ equity

Balance at beginning of
the year
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
the reporting period
Share transfer
Acquisition of
additional shares ofsubsidiaries uponshare transfer
Dividends of surplus
Profit attributable toowners of parent
Acquisition oftreasury stock
Disposition oftreasury stock
Retirement oftreasury shares
Transfer to capitalsurplus from retained
earnings
Change in interest in
subsidiaries
Net changes of items
other thanshareholders’ equity
during the reporting
periodTotal changes of items
during the reporting
periodBalance at end of period

Retainedearnings

Common stock

Capital surplus

48,12018,379Total
shareholders’equityTreasury stock

19,031(1,636)

83,894260

260

48,12018,37919,291(28,120)

81,08952,969

153

153

0

(1,636)(1,758)(1,758)57,29057,290
(548)

(548)

68

62

1,571

-

(6)

(1,571)
1,571

84,155(1,571)

-

(15)

(15)

(28,120)

81,227

53,953

1,092

108,152

20,00099,60773,245(544)

192,308

Accumulated other comprehensive incomeNet
unrealized
gain onavailable-forsale securities
Balance at beginning of
the year
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items
during the reporting
periodShare transfer
Acquisition of
additional shares ofsubsidiaries uponshare transfer
Dividends of surplus
Profit attributable toowners of parent
Acquisition oftreasury stock
Disposition oftreasury stock
Retirement oftreasury shares
Transfer to capitalsurplus from retained
earnings
Change in interest in
subsidiaries
Net changes of items
other thanshareholders’ equity
during the reporting
periodTotal changes of items
during the reporting
periodBalance at end of
period

1,707

Deferred
gains orlosses onhedges-

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

(211)

10

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income(4,655)(3,148)Subscription
rights toshares79

Non-controllinginterests

248

Total net
assets81,073
260

1,707

-

(211)

10

(4,655)(3,148)79

248

81,33452,969153(1,758)57,290
(548)
62
(15)

8,076

2

1

6

5,087

13,174(79)(2)

13,092

8,076

2

1

6

5,087

13,174(79)(2)

121,245

9,784

2

(210)

17

432

10,026-

245

202,58011

(Year ended March 31, 2016)(¥ million)
Shareholders’ equity

Balance at beginning of
the year
Changes of items during
the reporting period
Dividends of surplus
Profit attributable toowners of parent
Acquisition oftreasury stock
Disposition oftreasury stock
Change in interest in
subsidiaries
Net changes of items
other thanshareholders’ equity
during the reporting
periodTotal of changes during
the reporting period
Balance at end of period

Retainedearnings

Common stock

Capital surplus

20,00099,607

Total
shareholders’equityTreasury stock

73,245(544)

192,308(1,744)(1,744)

9,412

9,412

0

(52)

(52)

2

2

(21)

(21)

-

(21)

7,668

(50)

7,596

20,00099,58580,913(594)

199,905

Accumulated other comprehensive income

Balance at beginning of
the year
Changes of items
during the reporting
periodDividends of surplus
Profit attributable toowners of parent
Acquisition oftreasury stock
Disposition oftreasury stock
Change in interest in
subsidiaries
Net changes of items
other thanshareholders’ equity
during the reporting
periodTotal of changes during
the reporting period
Balance at end of
periodNet
unrealized
gain onavailable-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

9,784

2

(210)

17

Total
Remeasurements accumulatedof definedotherbenefit planscomprehensive
income432

10,026

Subscription
rights toshares-Non-controllinginterests

245

Total net
assets

202,580(1,744)
9,412
(52)
2
(21)

(1,393)4

0(5)(5,654)(7,048)46

41(6,960)(1,393)4

0(5)(5,654)(7,048)

46

41

636

8,390

6

(209)

11

(5,221)

2,977

46

286

203,21612

(4) Consolidated Statements of Cash Flows(¥ million)
Year ended
March 31, 2015

Year ended
March 31, 2016

Cash flows from operating activities
Profit before income taxes

62,205

14,551

Depreciation

2,508

3,485

Retirement benefit expenses

1,263

(216)

Gain on bargain purchase(50,476)－3－

Loss (gain) on step acquisitions
Share profit of entities accounted for using equity method
Increase (decrease) in reserve for possible loan losses
Increase (decrease) in reserve for employee bonuses

(202)

(189)

(4,104)(4,791)

(50)

(36)

Decrease (increase) in net defined benefit assets(8,207)

2,130

Increase (decrease) in net defined benefit liability(1,768)2,204

Increase (decrease) in reserve for directors’ retirement benefits

9

(51)

Increase (decrease) in reserve for point card certificates

42

Increase (decrease) in reserve for loss on interest repayments

3

(0)

113

144

Increase (decrease) in reserve for loss on dormant deposit repayments
Increase (decrease) in reserve for contingent loss
Gain on fund management

(68)

(80)

(45,003)(55,840)

Financing expenses

2,975

3,623

Gain (loss) on securities(2,389)(2,984)Foreign exchange losses (gains)(9,010)19,144

Net loss (gain) on disposal of fixed assets

76

(87)

Provision for special account for advanced depreciation of fixed assets－

122

Net increase (decrease) in trading account securities

－
(213)

(132)

Net (decrease) increase in loans and bills discounted(18,788)(65,117)

Net increase (decrease) in deposits

7,587

10,886

Net increase (decrease) in negotiable certificates of deposit
Net increase (decrease) in borrowed money(excluding subordinated loans)
Net decrease (increase) in deposit(excluding deposit paid to Bank of Japan)
Net (decrease) increase in call loans(5,127)

7,168

(119)

15

7,878

(33)

27,026(15,852)

Net increase (decrease) in payables under securities lending transactions

Gain on state subsidies, etc. received(51)

140,876

152,450

Increase (decrease) in money held in trust

20－

Net decrease (increase) in foreign exchange (assets)

496

1,200

Net increase (decrease) in foreign exchange (liabilities)

17

(70)

Proceeds from fund management

45,51857,631

Payments for finance(3,130)(3,845)

Other

8,185

(16,436)

Subtotal

158,109108,940

Income taxes paid

(1,208)(3,544)

Income taxes refund－

312

156,901

105,708

Net cash provided by (used in) operating activities13(¥ million)
Year ended
March 31, 2015

Year ended
March 31, 2016

Cash flows from investing activities
Purchase of securities(588,928)(657,580)

Proceeds from sales of securities

500,403577,214

Proceeds from redemption of securities

13,99894,063Purchase of tangible fixed assets(18,332)(1,408)

(46)

(41)

Retirement of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Proceeds from state subsidies, etc.
Net cash provided by (used in) investing activities

0

534

(393)

(260)

－

234

(93,299)

12,757

Cash flows from financing activities
Decrease in subordinated borrowings(5,000)－

Redemption of subordinated bonds(5,000)(9,600)Cash dividends paid

(1,755)(1,747)

Dividends paid to non-controlling interests

(0)

(6)

Purchase of treasury shares

(55)

(52)

Proceeds from sale of treasury stock

37

2

(290)

(390)

(12,066)(11,794)

110

Net change in cash and cash equivalents

51,546

106,671

Cash and cash equivalents at beginning of year

122,982

286,385

Increase in cash and cash equivalents due to share transfer

111,855－

Cash and cash equivalents at end of year

286,385

393,056

Repayments of lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

14(5) Notes on Premise of Going Concern
Not applicable.
(6) Accounting Standards Not Yet Applied
Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Guidance No. 26; March 28,
2016)(1) Summary
In this guidance, the Accounting Standards Board of Japan basically continues the application of
accounting treatments for recoverability of deferred tax assets that was prescribed in Auditing
Guidance No. 66, “Auditing Treatment for Judgment of Recoverability of Deferred Assets,” issued by
the Japanese Institute of Certified Public Accountants (JICPA), however partial changes have beenmade.
(2) Scheduled date for application
The Company is scheduled to apply this guidance from the beginning of the consolidated fiscal
year starting on April 1, 2016.
(3) The impact of applying this guidance
The impact of applying this guidance is still being assessed.
(7) Changes in Presentation
As a result of applying the provisions of Article 39 of “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22; September 13, 2013), etc., the presentation of net
income, etc. has been changed and the presentation of “minority interests” has been changed to“non-controlling interests.” Reflecting these changes in presentation, the consolidated financial
statements for the previous consolidated fiscal year have been restated.
(8) Notes to Consolidated Financial Statements(Segment information)
The Group’s only reporting segment is the banking business. Note that while the Group conducts
businesses other than the banking business including a computer-related service business, aninformation provision service business, and credit card services, this information has been omitted
because the ratio of these businesses to all segments is not material.
(Per Share Information)
Reporting period(Year ended March 31, 2016)
Net assets per share¥

6,982.00

Profit attributable to owners of parent per share¥

323.84

Profit attributable to owners of parent per share (Diluted)¥

311.89Notes:
1. The calculation basis for net asset amount per share is as follows.
Reporting period(Year ended March 31,2016)
Total net assets(¥ million)

203,216

Amount deducted from total net assets(¥ million)

333(of which subscription rights to shares)(¥ million)46(of which non-controlling interests)(¥ million)

286

Net asset amount for common stock at the year-end(¥ million)

202,882

Thousand shares

29,057

Number of shares of common stock at the year-end used for
calculating net asset amount per share

15

2.

The following is the basis for calculating the amount of net income per share and the amount of diluted net income pershare for the reporting period.
Reporting period(Year ended March 31, 2016)

Profit attributable to owners of parent per share
Profit attributable to owners of parent(¥ million)

9,412

Amount not belonging to common stock(¥ million)－

Profit in relation to common stock(¥ million)

9,412

Thousand shares

29,064Weighted-average shares of ordinary stock during the period
Profit attributable to owners of parent per share (Diluted)
Profit attributable to owners of parent adjustment amount(¥ million)

71

Interest on bonds with subscription rights to shares(net of applicable taxes)(¥ million)

71

Thousand shares

1,344(Bonds with subscription rights to shares)

Thousand shares

1,336(Subscription rights to shares)

Thousand shares

7

Effect of dilutive securities

Summary of residual securities not included in calculation of net
profit per share after adjustment of residual securities because
they have no dilutive effects－(Significant Subsequent Events)
At meetings of their respective Boards of Directors held on September 25, 2015, the Tokyo TY
Financial Group (hereafter, “the Company”) and ShinGinko Tokyo, Limited (hereafter, “ShinGinko
Tokyo”) resolved to carry out a business integration through a share exchange with an effective date ofApril 1, 2016 in which the Company would become the wholly owning parent company and ShinGinko
Tokyo the wholly owned subsidiary, assuming that approval by the general meeting of shareholders and aclass shareholders meeting by ordinary shareholders and the relevant authorities necessary for theBusiness Integration would be obtained. The two companies signed a Share Exchange Agreement andBusiness Integration Agreement, and on April 1, 2016, the share exchange was implemented andShinGinko Tokyo became a wholly owned subsidiary of the Company.
Moreover, this Share Exchange Agreement was approved at extraordinary meetings of shareholders
and class shareholders meetings by ordinary shareholders held by both companies on November 27, 2015.
1. Summary of business combination through acquisition(1) Name, nature, and scale of business of acquired company
Name of acquired company
ShinGinko Tokyo, Limited
Nature of businessBanking
Capital¥20 billion(2) Reason for conducting business combination
The Company and ShinGinko Tokyo have both utilized their respective strengths as regional
financial institutions in the Tokyo metropolitan area to facilitate local financing and contribute to
the development of regional economies. However, both companies share the same management
goal of supporting small and medium-sized enterprises, and business integration will enable thetwo companies to truly perform their role as regional financial institutions in the Tokyo
metropolitan area, and can also be expected to generate synergistic effects, for which reasons we
implemented the business integration.
(3) Date of business combination
April 1, 2016(4) Legal form of the business combination
Share exchange(5) Name of company after combination
No change in name of the company after combination
16

(6) Ratio of voting rights acquired
100%(7) Grounds for determining acquiring company
As a result of a comprehensive assessment of the determining factors laid out in the AccountingStandard for Business Combinations and other factors, it was determined that the Company was theacquiring company.
2. Acquired company acquisition cost and breakdown of same
Consideration for acquisition: Common stock of the Company allotted on date of business combination¥3.719 billion

Preferred stock of the Company allotted on date of business combination¥40.0 billion

Acquisition cost

¥43.719 billion

3. Share exchange ratio by class of shares, method of calculation, and number of shares allotted(1) Share exchange ratio by class of shares
1. 0.24 shares of the Company’s common stock for every 1 share of ShinGinko Tokyo’s common
stock
2. 1 share of ShinGinko Tokyo’s preferred stock for every 1 share of the Company’s preferredstock(2) Share exchange ratio calculation
Multiple financial advisors were requested to calculate the share exchange ratio as third-party
appraisers, and the calculation was decided by discussion among the involved parties withreference to these reports.
(3) Number of shares allotted
Common stock 1,422,289 shares
Preferred stock 2,000,000 shares
4. Impact of acquisition on consolidated statements of income
Gains on bargain purchase arising from this share exchange are estimated at ¥19.443 billion(provisional figure).

17

6. Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets(¥ million)
As of March 31, 2015

As of March 31, 2016

Cash and due from banks

1,544

1,702

Accounts receivable - other－

25

AssetsCurrent assets

Prepaid expenses

1

1

Income taxes receivable

312

355

Deferred tax assets

14

10

Total current assets

1,873

2,095

134,845

134,845

Non-current assets
Investments and other assets
Shares of subsidiaries and associates
Loans receivable from subsidiaries and associates

5,000

5,000

139,845

139,845

139,845

139,845

Organization expenses

64

50

Share issuance cost

95

Total deferred assets

74

56

141,793

141,996

Accounts payable - other34

7

Accrued expenses－

0

Dividends payable－

13

Income taxes

34

29

Deposits received

10

11

Suspense receipt－

0

Reserve for employee bonuses

24

31

Total current liabilities

103

93

5,000

5,000

Total investments and other assets
Total non-current assets
Deferred assets

Total assets
Liabilities
Current liabilities

Non-current liabilities
Bonds with subscription rights to shares
Total non-current liabilities
Total liabilities

5,000

5,000

5,103

5,093

20,00020,000

5,000

5,000

Net assets
Shareholders’ equity
Common stock
Capital surplus
Capital reserve
Other capital surplus

110,276

110,277

Total capital surplus

115,276

115,277

Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock

1,957

2,174

1,957

2,174

(544)

(594)

Total shareholders’ equity

136,689

136,856

Subscription rights to shares－

46

Total net assets
Total liabilities and net assets

18

136,689

136,903

141,793

141,996(2) Non-consolidated Statements of Income(¥ million)
Year ended
March 31, 2015

Year ended
March 31, 2016

Operating income
Dividends from subsidiaries and associates

1,849

1,888

Commissions from subsidiaries and associates

534

1,039

2,383

2,927

Total operating income
Operating expenses
Selling, general and administrative expenses

349

731

Total operating expenses

349

731

2,034

2,196

Interest income

53

107

Miscellaneous income

00

Total non-operating income

53

108

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

53

107

Commission fee－

144

Amortization of deferred organization expenses

7

14

Amortization of share issuance cost

1

3

Total non-operating expenses

62

270

Ordinary profit

2,024

2,034

Income before income taxes

2,024

2,034

Income taxes - current

82

68

Income taxes - deferred

(14)

4

Total income taxes

67

72

1,957

1,961

Net income19(3) Non-consolidated Statements of Changes in Net Assets
Year ended March 31, 2015 (October 1, 2014 to March 31, 2015)(¥ million)
Capital surplus

Commonstock

Balance at
beginning of theyear
Changes of items
during thereporting period
Share transfer
Net income
Acquisition oftreasury stock
Disposition oftreasury stock
Net changes of
items other thanshareholders'equityTotal of changes of
items during thereporting period
Balance at end of
periodOther
capitalsurplusCapitalreserve

Shareholders’ equity
Retained earnings
Otherretainedearnings
Total
Total capitalretained
Retained
surplusearnings
earnings
brought
forward

-

-

-

-

20,0005,000

110,276

115,276

0

Total
Shareholders’equityTreasury
stock

-

-

1,957

1,957

0

-

-

Subscription
rights tosharesTotal net
assets--135,276
1,957

135,276
1,957

(546)

(546)

(546)

1

1

1

-

-

20,0005,000

110,276

115,276

1,957

1,957

(544)

136,689-

136,689

20,0005,000

110,276

115,276

1,957

1,957

(544)

136,689-

136,689

Year ended March 31, 2016 (April 1, 2015 to March 31, 2016)(¥ million)
Capital surplus

Commonstock

Balance at
beginning of theyear
Changes of items
during thereporting period
Dividends ofsurplus
Net income
Acquisition oftreasury stock
Disposition oftreasury stock
Net changes of
items other thanshareholders'equityTotal of changes of
items during thereporting period
Balance at end of
periodOther
capitalsurplusCapitalreserve

20,0005,000

110,2760

Shareholders’ equity
Retained earnings
Otherretainedearnings
Total
Total capitalretained
Retained
surplusearnings
earnings
brought
forward
115,276

1,957

1,957

(1,744)(1,744)

1,961

1,961

0

Treasury
stock

(544)

Total
Shareholders’equity136,689

Subscription
rights tosharesTotal net
assets-136,689(1,744)(1,744)

1,961

1,961

(52)

(52)

(52)

2

2

2

46

46

-

-

0

0

217

217

(50)

167

46

213

20,0005,000

110,277

115,277

2,174

2,174

(594)

136,856

46

136,903(4) Notes on Premise of Going Concern
Not applicable.

207. (Reference) Overview of Major Consolidated Subsidiary Operating Performance(1) Non-consolidated Financial Statements (The Tokyo Tomin Bank, Limited)
May 13, 2016
Company name： The Tokyo Tomin Bank, Limited
Representative: Takashi Sakamoto, President
Responsible person for inquiries: Masahiro Ogura, General Manager of Corporate Planning Division and
Joint General Manager of Financial Office
URL: http://www.tominbank.co.jp
Telephone: +81-3-3582-8251
Note: Figures have been rounded down to the nearest million yen.

1. Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2016

(From April 1, 2015 to March 31, 2016)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)
Ordinary income

Ordinary profit(%)

Net income(¥ million)(%)(¥ million)(¥ million)(%)

Fiscal Year ended March 31, 2016

42,465

(4.5)

6,718

(1.5)

4,231

21.5

Fiscal Year ended March 31, 2015

44,477

(0.0)

6,826

43.6

3,482

(17.5)(2) Non-consolidated financial position

As of March 31, 2016

Total assets(¥ million)

Total net assets(¥ million)

Net assets to total assets ratio(%)

2,791,960

90,491

3.2

2,687,314
89,225
3.3
As of March 31, 2015
(Reference) Equity:
As of March 31, 2016: ¥90,491 million
As of March 31, 2015: ¥89,225 million(Note) “Equity” is the value of total net assets at the end of the fiscal year, and “Net assets to total assets ratio” is calculated by
dividing equity by total assets at the end of the fiscal year. Note that this “Net assets to total assets ratio” is not the net assets
to total assets ratio required for the Capital Adequacy Ratio Notification.

21

○ Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets

The Tokyo Tomin Bank, Limited(¥ million)
As of March 31, 2015

As of March 31, 2016

213,293295,235

AssetsCash and due from banks
Cash on hand

22,727

18,862

Due from banks

190,565

276,373

Call loans

3,442

4,497

Monetary claims bought

650

Trading account securities

177

31

Trading account Japanese government bonds

161

12

Trading account Municipal government bonds

16

18

Securities

586,219586,946

Japanese government bonds

315,341

307,137

Municipal government bonds

49,48843,544

Corporate bonds

102,908

110,377

Corporate stocks

32,84226,809Other securities

85,63999,077Loans and bills discounted

1,828,147

1,842,130

Bills discounted

29,838

26,110Loans on bills

75,072

79,403Loans on deeds

1,580,034

1,596,182

143,201

140,433

Foreign exchange

5,544

3,406

Due from foreign banks

2,739

2,111

Overdrafts

Foreign bills of exchange bought

604

149

Foreign bills of exchange receivable

2,200

1,145

Other assets

12,483

17,051

Prepaid expenses

369

361

Accrued income

2,461

2,393

Initial margins of futures markets－

73

Variation margins of futures markets－

131

Financial derivatives

2,600

2,938

Other assets

7,051

11,153

Tangible fixed assets

32,25932,574

Buildings

5,709

5,535

Land

22,843

22,979451

650

Construction in progress

2,160

2,160

Other tangible fixed assets

1,095

1,249

Intangible fixed assets

1,850

1,116

Software

1,459

801

120

164

Leased assets

Leased assets

271

150

Prepaid pension cost

Other intangible fixed assets

11,607

14,316

Deferred tax assets

5,597

4,194

Customers’ liabilities for acceptances and guarantees

3,133

2,926

(16,508)(12,466)

2,687,314

2,791,960

Reserve for possible loan losses
Total assets

22

The Tokyo Tomin Bank, Limited(¥ million)
As of March 31, 2015

As of March 31, 2016

2,379,799

2,390,437

Current deposits

169,843

160,482

Ordinary deposits

949,587

987,007

Savings deposits

17,792

17,201

Liabilities
Deposits

Deposits at noticeTime deposits

20,714

14,683

1,117,374

1,094,880

Installment savings

58,15658,081Other deposits

46,33058,101

25,83832,706－474

140,876

236,597

7,209

7,225

7,209

7,225

Negotiable certificates of deposit
Call money
Payables under securities lending transactions
Borrowed money
Borrowings from other banks
Foreign exchange

138

65

Due to foreign banks

1

1

Foreign bills of exchange sold51

2Foreign bills of exchange payable

85

61

Bonds

25,60016,000

Other liabilities

13,757

13,212

Income taxes

256

252

Accrued expenses

1,989

1,834

Unearned income

1,195

1,191

Reserve for interest on installment savings
Financial derivatives

29

23

1,702

1,524

Cash collateral received for financial instruments

127－

Lease obligations

598

833

Asset retirement obligations
Other liabilities
Reserve for employee bonuses
Reserve for directors’ retirement benefits
Reserve for point card certificates

203

212

7,653

7,339

1,076

1,079

101

60

2

2

Reserve for loss on dormant deposit repayments

236

374

Provision for contingent loss

302

291

Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities

23

15

14

3,133

2,926

2,598,089

2,701,469

The Tokyo Tomin Bank, Limited(¥ million)
As of March 31, 2015

As of March 31, 2016

Common stock

48,12048,120Capital surplus

18,08318,08318,08318,083

Net Assets

Capital reserve－－

Retained earnings

15,36918,655

Earned reserve

3,408

3,597

Other retained earnings

11,96015,058General reserve

6,400

6,400

Other capital surplus

5,560

8,658

Total shareholders’ equity

Retained earnings brought forward

81,57384,859Net unrealized gain on available-for-sale securities

7,862

5,840

Revaluation reserve for land

(210)

(209)

Total valuation and translation adjustments

7,651

5,631

Total net assets

89,22590,491

2,687,314

2,791,960

Total liabilities and net assets24

(2) Non-consolidated Statements of Income
The Tokyo Tomin Bank, Limited(¥ million)
Year ended
March 31, 2015

Year ended
March 31, 2016

Ordinary income

44,47742,465Interest income

31,52630,619Interest on loans and discounts

26,72024,503

Interest and dividends on securities

4,398

5,677

86

54

9

－

Interest on call loans
Interest on receivables under securities borrowing
transactions
Interest on deposits with banks

121

233

Other interest income

190

149

9,221

8,204

Fees and commissions on domestic and foreign exchange

2,003

2,009

Other fees and commissions

7,218

6,194

2,177

2,209

1,035

911

Fees and commissions

Other operating income
Gain on foreign exchange transactions
Gain on trading account securities transactions－

0

Gain on sale of bonds

618

718

Income from derivatives other than for trading or hedging

522

579

0

0

1,552

1,432

0

0

252

800

Other
Other ordinary income
Gain on recovery of write-off claims
Gain on sale of stocks and other securities

7

－

Other

1,292

631

Ordinary expenses

37,65135,746

Interest expenses

2,245

2,376

1,163

1,047

38

26

Gain on equity derivatives

Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money

0

7Interest on payables under securities lending transactions

109

649

Interest on borrowed money

207

126

Interest on corporate bonds

698

488

Other interest expenses

27

31

2,834

2,689

429

454

2,405

2,235

16

142

Fees and commissions
Fees and commissions on domestic and foreign exchange
Other fees and commissions
Other operating expenses
Loss on trading account securities transactions

0－

Loss on sale of bonds

16

142

General and administrative expenses

30,01628,317

Other ordinary expenses

2,539

2,220

1,279

1,447

Transfer to reserve for possible loan losses
Write-off of loans

8－

Loss on sale of stocks and other securities

25

148

Loss on devaluation of stocks and other securities

39－

Costs related to financial derivatives

－

19

Other

1,185

604

Ordinary profit

6,826

6,718

25

The Tokyo Tomin Bank, Limited(¥ million)
Year ended
March 31, 2015
Extraordinary income
Gain on liquidation of subsidiaries
Extraordinary losses
Loss on deposition of fixed assets

Year ended
March 31, 2016
－

252

－

252

66

90

66

90

6,759

6,880

Income taxes – current

255

84

Income taxes – deferred

3,021

2,564

Total income taxes

3,277

2,649

Net income

3,482

4,231

Income before income taxes

26

(2) Non-consolidated Financial Statements (The Yachiyo Bank, Limited)
May 13, 2016
Company name: The Yachiyo Bank, Limited
Representative: Hirokazu Tahara, President
Responsible person for inquiries: Hiroshi Shibuya, Executive Officer, General Manager of Corporate
Planning Division
URL: http://www.yachiyobank.co.jp
Telephone: +81-3-3352-2295
Note: Figures have been rounded down to the nearest million yen.

1. Non-consolidated Operating Performance for the Fiscal Year Ended March 31, 2016

(From April 1, 2015 to March 31, 2016)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)
Ordinary income

Ordinary profit(¥ million)(%)

Fiscal year ended March 31, 2016

37,304

Fiscal year ended March 31, 2015

41,012

Net income(¥ million)(%)(¥ million)

(%)

(9.0)

7,184

(23.3)

4,772(21.3)

1.4

9,368

19.6

6,067

(0.9)

(2) Non-consolidated financial position

As of March 31, 2016

Total assets(¥ million)

Total net assets(¥ million)

Net assets to total assets ratio(%)

2,324,249

109,6264.7

2,254,512
104,726
4.6
As of March 31, 2015
(Reference) Equity:
As of March 31, 2016: ¥109,626 million
As of March 31, 2015: ¥104,726 million(Note) “Equity” is the value of total net assets at the end of the fiscal year, and “Net assets to total assets ratio” is calculated by
dividing equity by total assets at the end of the fiscal year. Note that this “Net assets to total assets ratio” is not the net assets to total
assets ratio required for the Capital Adequacy Ratio Notification.

27

○ Non-consolidated Financial Statements(1) Non-consolidated Balance Sheets

The Yachiyo Bank, Limited(¥ million)
As of March 31, 2015

As of March 31, 2016

Cash and due from banks

85,467110,233

Cash on hand

22,547

19,493Due from banks

62,92090,740Call loans

25,49539,577

Monetary claims bought

2,946

4,202

Trading account securities

429

627

AssetsTrading account Japanese government bonds

41

34

Trading account Municipal government bonds

387

593

Securities

637,916

613,955

Japanese government bonds

276,884

203,438

Municipal government bonds

64,782

71,933－9,999

Corporate bonds

244,715

242,557

Corporate stocks

14,824

13,021

Short-term bonds payable

Other securities
Loans and bills discounted
Bills discounted

36,70873,004

1,466,028

1,517,513

16,19915,806Loans on bills

20,777

24,873Loans on deeds

1,376,400

1,417,690

Overdrafts

52,65159,142Foreign exchange

2,186

3,124

Due from foreign banks

1,691

2,839

165

76

Foreign bills of exchange bought
Foreign bills of exchange receivable

329

208

4,690

8,302

Prepaid expenses

118

106

Accrued income

1,813

1,703

132

117

Other assets

Financial derivatives
Other assets

2,625

6,374

Tangible fixed assets

30,17629,368

Buildings

7,767

7,534

Land

20,686

20,356

Leased assets

502

437

Construction in progress

63

66

Other tangible fixed assets

1,156

973

Intangible fixed assets

1,265

786

Software

1,021

538

Leased assets

14

4

Other intangible fixed assets

230

243

Deferred tax assets

4,551

3,359

Customers’ liabilities for acceptances and guarantees

3,497

2,934

Reserve for possible loan losses
Total assets

28(10,139)(9,736)2,254,512

2,324,249

The Yachiyo Bank, Limited(¥ million)
As of March 31, 2015

As of March 31, 2016

2,122,761

2,124,520

Current deposits

51,141

52,740Ordinary deposits

1,097,833

1,154,592

Savings deposits

21,94820,857

Liabilities
Deposits

Deposits at noticeTime deposits

1,541

2,054

909,534

853,743

Installment savings

22,03021,814

Other deposits

18,73018,717

Negotiable certificates of deposit

3,930

5,630

－

56,730

5,000

5,000

5,000

5,000

0

2

Foreign bills of exchange sold00Foreign bills of exchange payable

02

Other liabilities

6,447

12,687

Income taxes

1,605

988

Accrued expenses

1,293

962

Unearned income

178

184

Deposits received from employees

539

536

Reserve for interest on installment savings

10

9

Financial derivatives

254

34

Lease obligations

547

473

Asset retirement obligations

94

126

Payables under securities lending transactions
Borrowed money
Borrowings from other banks
Foreign exchange

1,922

9,371

Reserve for employee bonuses

Other liabilities

869

844

Reserve for retirement benefits

3,546

2,810

608

614

Reserve for loss on dormant deposit repayments
Provision for contingent loss

438

367

Deferred tax liabilities for land revaluation

2,687

2,481

Acceptances and guarantees

3,497

2,934

2,149,786

2,214,623

Total liabilities

29

The Yachiyo Bank, Limited(¥ million)
As of March 31, 2015

As of March 31, 2016

Common stock

43,73443,734

Capital surplus

32,922

32,922

32,922

32,922

Net Assets

Capital reserve－－

Retained earnings

23,57427,540Earned reserve

5,836

6,025

Other retained earnings

17,73821,515General reserve

11,70011,700

Other capital surplus

Retained earnings brought forward
Total shareholders’ equity
Net unrealized gain on available-for-sale securities

6,038

9,815

100,232

104,197

3,891

4,819

Deferred gains or losses on hedges

(12)

(7)

Revaluation reserve for land

615

616

Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

30

4,494

5,428

104,726

109,626

2,254,512

2,324,249

(2) Non-consolidated Statements of Income
The Yachiyo Bank, Limited(¥ million)
Year ended
March 31, 2015

Year ended
March 31, 2016

Ordinary income

41,01237,304

Interest income

28,84527,361

Interest on loans and discounts

22,356

21,195Interest and dividends on securities

5,861

5,551

Interest on call loans

116

156

Interest on deposits with banks

75

77

Other interest income
Fees and commissions
Fees and commissions on domestic and foreign exchange
Other fees and commissions
Other operating income
Gain on foreign exchange transactions
Gain on trading account securities transactions
Gain on sale of bonds
Income from derivatives other than for trading or hedging
Other ordinary income

435

380

5,537

5,986

1,903

1,928

3,634

4,058

2,980

2,316

358

169

2

3

2,488

1,634

130

508

3,649

1,639

Reversal of allowance for loan losses

1,488

207

Gain on recovery of write-off claims

779

507

Gain on sale of stocks and other securities

241

203

0

－

Gain on money held in trust
Other

1,139

720

Ordinary expenses

31,64430,120Interest expenses

1,452

1,252

1,304

1,104

Interest on negotiable certificates of deposit

11Interest on call money

00Interest on payables under securities lending transactions

12

15

Interest on borrowed money

55

107

Interest on bonds with subscription rights to shares

53－

Interest on deposits

Interest on interest swaps

9

9

Other interest expenses

15

14

2,196

1,780

422

428

1,774

1,351

74

25

Fees and commissions
Fees and commissions on domestic and foreign exchange
Other fees and commissions
Other operating expenses

74

25

General and administrative expenses

Loss on sale of bonds

26,07725,309Other ordinary expenses

1,843

1,752

Write-off of loans

945

139

Loss on sale of stocks and other securities

10

149

Loss on devaluation of stocks and other securities

－

533

Other

887

930

Ordinary profit

9,368

7,184

31

The Yachiyo Bank, Limited(¥ million)
Year ended
March 31, 2015
Extraordinary income

Year ended
March 31, 2016
0294

Gain on disposal of non-current assets

0162

Gain on state subsidies, etc. received－

132

Extraordinary losses

13

228

Loss on deposition of fixed assets
Provision for special account for advanced
depreciation of non-current assets
Income before income taxes

13

105

－

122

9,354

7,250

Income taxes – current

2,142

1,817

Income taxes – deferred

1,144

661

Total income taxes

3,286

2,478

Net income

6,067

4,772

32

8. Changes to Directors
For details on changes to directors, refer to “HR matters concerning the directors and executive directors of theTokyo TY Financial Group and its subsidiaries” released on May 13, 2016.

33