Tokyo Kiraboshi Financial Group, Inc.
Listed Code: 7173
(URL: https://www.tokyo-kiraboshifg.co.jp/)
Listed Stock Exchange: TSE1
November 10, 2020

Consolidated Financial Reportfor the First Half of the Fiscal Year Ending March 31, 2021
<Under Japanese GAAP>
Representative: Hisanobu Watanabe, President
Responsible person for inquiries: Nobuyuki Yasuda, General Manager of Corporate Planning Division
Telephone: +81-3-6447-5799
Date of submission of quarterly security report: November 25, 2020
Date to start dividend payment: December 2, 2020
Establishment of special transaction account: Not establishedPreparation of supplementary material on financial results: Yes
Holding of financial results presentation meeting: None
Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2021
(From April 1, 2020 to September 30, 2020)(1) Results in consolidated operations
Ordinary income(¥ million)(%)(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent(¥ million)(%)(¥ million)(%)

First half of the fiscal year ending March 31, 2021

46,965

5.0

3,540

24.7

2,057

(39.2)First half of the fiscal year ended March 31, 2020

44,704

13.2

2,838

5.6

3,386

(9.9)

(Note) Comprehensive income: First half of the fiscal year ending March 31, 2021: ¥ 6,280 million (1.3%)
First half of the fiscal year ended March 31, 2020: ¥ 6,366 million (13.1%)
Profit attributable to owners ofparent per share (¥)

Profit attributable to owners ofparent per share (Diluted) (¥)

First half of the fiscal year ending March 31, 2021

63.68

31.61

First half of the fiscal year ended March 31, 2020

107.5456.38(2) Consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets tototal assets ratio (%)

First half of the fiscal year ending March 31, 2021

5,703,314
299,753
5.2
5,501,145
294,462
5.3
Fiscal year ended March 31, 2020
(Reference)
Equity:First half of the fiscal year ending March 31, 2021: ¥ 299,722 million
Fiscal year ended March 31, 2020: ¥294,405 million(Note)“Equity” consists of subscription rights to shares at the end of the period 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 period. 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 (Financial Services Agency Notification No. 20 of 2006).

2. Dividends
Annual dividend per share (¥)
First quarter

Second quarter Third quarter Fiscal year-end

Annual

–60.00

Fiscal year ended March 31, 2020

–

30.00

Fiscal year ending March 31, 2021

–

30.00

30.00

Fiscal year ending March 31, 2021

–
30.00
60.00
(Forecast)(Note 1) Changes to the dividend forecast most recently announced: None
(Note 2) “Dividends” above refers to dividends for common stock. With regard to dividends for class shares (unlisted) issued by
the Company with different rights than those of common stock, refer to “Dividend situation for class shares” below.

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2021
(From April 1, 2020 to March 31, 2021)(Percentages represent increases or decreases from the previous year results.)

Profit attributable toowners of parent

Ordinary profit(¥ million)(%)(¥ million)

Profit attributable toowners of parent per share

(%)

(¥)

5,700
142.7
4,000
(47.7)
Full-year(Note) Changes to the forecast of consolidated operating performance most recently announced: None

123.63* 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. Changes in accounting policies due to revisions to accounting standards: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None

(3) Number of shares issued (common stock)a. Total number of shares issued at the end of the period (including treasury stock)
First half of the fiscal year ending March 31, 2021

30,650,115 sharesFiscal year ended March 31, 2020

30,650,115 sharesb. Number of treasury stock at the end of the period
First half of the fiscal year ending March 31, 2021

258,781 sharesFiscal year ended March 31, 2020

287,585 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
First half of the fiscal year ending March 31, 2021

30,372,359 sharesFirst half of the fiscal year ended March 31, 2020
30,371,922 shares(Note)The Company introduced Board Benefit Trust and the Company’s shares held by the said trust are included in treasury stock.

(Non-consolidated Financial Statements)
1. Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2021
(From April 1, 2020 to September 30, 2020)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)

Operating income
First half of the fiscal
year ending March 31,
2021
First half of the fiscal
year ended March 31,
2020(¥ million)(%)(¥ million)

Operating profit(%)

Ordinary profit(¥ million
(%)
)

1,576

2.1

1,037

(4.7)

1,044

1,543

(8.7)

1,089

(15.4)

1,078

Net income(¥ million)

(%)

(3.1)

1,051

(1.6)

(15.0)

1,068(11.5)Net income per
share
(¥)
First half of the fiscal
year ending March
31, 2021
First half of the fiscal
year ended March 31,
2020

30.57

31.22

(2) Non-consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets tototal assets ratio(%)

First half of the fiscal year ending March 31, 2021

199,197
199,059
99.9
199,169
198,997
99.8
Fiscal year ended March 31, 2020
(Reference)
Equity:First half of the fiscal year ending March 31, 2021: ¥199,029 million
Fiscal year ended March 31, 2020: ¥198,940 million(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year subtracted from net assets, and the “Net assets tototal 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 (Financial Services
Agency Notification No. 20 of 2006).

* This report is not subject to the scope of review by certified public accountants and audit corporations.
* Disclaimer and special note for referring to the forecast of operating performance
1. Since the Company falls under the category of specified company (a company undertaking businesses specified in
Article 17-15, Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.), it prepares theInterim Consolidated and Non-consolidated Financial Statements for the first-half accounting period.
2. Forward-looking statements concerning financial forecasts contained in these materials are based on information
available when the forecasts 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 theforecasts due to a variety of factors.

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

Second quarter

Third quarter

Fiscal year-end

Annual

–124.00–124.00248.00Fiscal year ended March 31, 2020

Fiscal year ending March 31, 2021–
125.00Fiscal year ending March 31, 2021–
125.00250.00(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Amount paid per share: ¥20,000
3. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2020(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate (*)
Annual dividend rate = Japanese yen TIBOR + 1.1%(c) Japanese yen TIBOROn April 1, 2019, the Japanese yen TIBOR (12-month maturity) = 0. 13636%(d) Shares issued
750,000(2) Fiscal year ending March 31, 2021 (Forecast)(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate (*)
Annual dividend rate = Japanese yen TIBOR + 1.1%(c) Japanese yen TIBOROn April 1, 2020, the Japanese yen TIBOR (12-month maturity) = 0.14636%(d) Shares issued
750,000(*Annual dividend rate: Figures less than % are calculated to three decimal places with the third decimal place rounded off tothe second decimal place.)(Class II preferred shares)
Dividend per share (¥)
Fiscal year ended March 31, 2020

First quarter

Second quarter

Third quarter

Fiscal year-end

Annual–13.636–

13.63627.272

14.63629.272

Fiscal year ending March 31, 2021–
14.636
Fiscal year ending March 31, 2021–
(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Amount paid per share: ¥20,000
3. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2020(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn April 1, 2019, the Japanese yen TIBOR (12-month maturity) = 0.13636%(d) Shares issued
2,000,000(2) Fiscal year ending March 31, 2021
(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn April 1, 2020, the Japanese yen TIBOR (12-month maturity) = 0.14636%(d) Shares issued
2,000,000

Attached Materials
Index
1. Qualitative Information Regarding Consolidated Results for the first half of the fiscal year ending
March 31, 2021
(1)

Operating Results ··········································································································· 2(2)Financial Position ··········································································································· 2(3)Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking
Statements ··················································································································· 2

2. Consolidated Interim Financial Statements and Notes(1)

Consolidated Interim Balance Sheets ·············································································· 3-4(2)Consolidated Interim Statements of Income and Consolidated Interim Statements ofComprehensive Income ······························································································· 5-6(3)

Consolidated Interim Statements of Changes in Net Assets ·················································· 7-8(4)

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

9(5)

Additional information ·····································································································

9(6)

Significant subsequent event ···························································································

9(Reference) Trust Asset Balance Table ····················································································· 10
3. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank,Ltd.
(1)

Overview of Non-consolidated Financial Statements ····························································· 11(2)

Non-consolidated Interim Balance Sheets ··········································································· 12(3)

Non-consolidated Interim Statements of Income ··································································· 13(Appendix)

Financial Results for the First Half of the Fiscal Year Ending March 31, 2021
- Supplementary Information-

1

1. Qualitative Information Regarding Consolidated Results for the first half of the fiscal year ending
March 31, 2021
(1) Operating Results
In the consolidated operating results for the first half of the fiscal year ending March 31, 2021, consolidated ordinary
income increased by ¥0.7 billion year-on-year to ¥3.5 billion, due largely to an increase in interest on loans and discounts
reflecting growth notably in COVID-19-related loans, and an increase also in gains on bonds. Profit attributable to ownersof parent decreased by ¥1.3 billion year-on-year to ¥2.0 billion.
The main factors affecting operating results of Kiraboshi Bank,Ltd., are as follows.
(i) Net interest income

Increases in interest on loans and discounts and in interest subsidies
associated largely with COVID-19-related loans, a decrease in interest on
securities due largely to the sale and redemption of Japanese government
bonds.

(ii) Non-interest income

A decrease of ¥1.0 billion year-on-year due in part to voluntary restraint of sales
activities.

(iii) Expenses

An increase of ¥0.6 billion year-on-year as a result notably of increases in BIB(branch-in-branch) implementation expenses and consumption tax associatedwith capitalization of the Day 2 system.

(iv) Credit-related costs

An increase of ¥1.1 billion year-on-year attributable to customer defaults
caused by inappropriate accounting treatment, deterioration of corporate
performance brought about by economic slowdowns in the face of the
COVID-19 pandemic, and other factors.

(v) Gains (losses) on bonds

An increase of ¥1.5 billion year-on-year due largely to the sale of marketablebonds held to maturity.

(vi) Gains (losses) on stocks and other An increase of ¥2.6 billion year-on-year due largely to the sale of stocks held for
securities(vii) Other non-recurring profit (loss)

strategic purposes.
A decrease of ¥1.1 billion year-on-year reflecting recognition notably of merger
and systems integration costs and fund costs (inclusive of loss on equity
derivates held for hedging purposes).

(viii) Profit for the six months ended

A decrease of ¥1.0 billion year-on-year.

September 30, 2020

(2) Financial Position
As of September 30, 2020, total assets amounted to ¥5,703.3 billion, up ¥202.1 billion from the end of the previous
fiscal year, and net assets stood at ¥299.7 billion, a ¥5.2 billion increase from the end of the previous fiscal year.
With respect to major account balances, deposits increased ¥342.2 billion from the end of the previous fiscal year to¥4,973.4 billion, and loans and bills discounted increased ¥156.3 billion from the end of the previous fiscal year to ¥3,917.1
billion, while securities decreased ¥60.8 billion to ¥887.1 billion.

(3) Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking
Statements
There is no change to the forecasts of operating performance for the fiscal year ending March 31, 2021, announced on
May 13, 2020.

2

2. Consolidated Interim Financial Statements and Notes(1) Consolidated Interim Balance Sheets(¥ million)
As of March 31, 2020
AssetsCash and due from banks
Call loans and bills bought
Other debt purchased
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchange
Lease receivables and investment assets
Other assets
Tangible fixed assets
Intangible fixed assets
Net defined benefit assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under securities lending transactions
Borrowed money
Foreign exchanges
Bonds
Other liabilities
Reserve for employee bonuses
Provision for directors’ bonuses
Provision for stock compensation
Net defined benefit liabilities
Reserve for directors’ retirement benefits
Reserve for point card certificates
Provision for loss on interest repayments
Reserve for loss on dormant deposit repayments
Provision for loss on cancellation of system contracts
Provision for contingent loss
Reserves under special laws
Deferred tax liabilities
Acceptances and guarantees
Total liabilities

3

As of September 30, 2020

538,902
2,513
74,1991,006
651
948,0423,760,834
5,593
17,622
93,27358,4193,771
13,234
11,251
4,905(33,076)
5,501,145

671,986
2,729
71,804
1,007
1,132
887,153
3,917,155
16,646
17,84762,36956,825
4,604
14,7708,793
5,002(36,514)
5,703,314

4,631,187
7,300
217,692
256,620
42,177232
4,200
37,291
1,637
183
139
65
23
40
8
1,318
935
659
－
60
4,905
5,206,683

4,973,414
6,000
15,499162,447
187,116160
4,100
45,848
1,613
48
107
65
19
41
10
1,287
－
692
0
85
5,002
5,403,560

(¥ million)
As of March 31, 2020
Net Assets
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Net unrealized gain on available-for-sale securities
Net deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

27,500150,684
114,641(814)
292,010
5,629
41
(242)
4
(3,038)2,394
56－
294,4625,501,145

4

As of September 30, 2020

27,500150,680
115,664(740)
293,105
9,605
41
(242)
5
(2,791)6,617
30－
299,753
5,703,314

(2) Consolidated Interim Statements of Income and Consolidated Interim Statements ofComprehensive Income(Consolidated Interim Statements of Income)(¥ million)
First half of the fiscal year
ended March 31, 2020
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Trust fees
Fees and commissions
Other operating income
Other ordinary income
Ordinary expenses
Financing expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary profit
Gain on disposal of non-current assets
Gain on step acquisitions
Gain on bargain purchase
Extraordinary losses
Loss on disposal of non-current assets
Profit before income taxes
Income tax – current
Income tax – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

44,70428,721
21,832
6,255
64
8,616
953
6,348
41,865
1,265
585
1,120
389
27,536
11,555
2,838
659
0
523
136
40
40
3,457
1,105
(1,036)
68
3,389
2
3,386

5

First half of the fiscal year
ending March 31, 2021
46,96528,78922,029
5,435
59
6,714
2,932
8,468
43,425
655
345
1,307
49
28,176
13,235
3,540
－
－
－
－
6
6
3,533
824
651
1,476
2,057
－
2,057

(Consolidated Interim Statements of Comprehensive Income)(¥ million)
First half of the fiscal year
ended March 31, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
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-controllinginterests

6

First half of the fiscal year
ending March 31, 2021

3,389
2,977
2,574
－
(4)
451

2,057
4,222
3,975
(0)
0
246

(44)

－

6,366

6,280

6,407

6,280

(40)

－

(3) Consolidated Interim Statements of Changes in Net Assets(First half of the fiscal year ended March 31, 2020)(¥ million)
Shareholders’ equity
Common stock

Retained earnings

150,473

109,053

214

(0)

213

Dividends of surplus(1,034)(1,034)

Profit attributable to owners ofparent

3,386

3,386

Balance at beginning of the year

27,500Treasury stock

Total shareholders’equityCapital surplus(804)

286,223

Changes of items during thereporting period
Purchase of shares of
consolidated subsidiaries

Acquisition of treasury stock
Disposition of treasury stock

(0)

(7)

(7)

5

4

Net changes of items other thanshareholders’ equity during thereporting period
Total changes of items during thereporting period
Balance at end of period

－

213

2,351

(1)

2,563

27,500150,687

111,405(806)

288,786

Accumulated other comprehensive income
Subscription
Valuation
RemeasureTotal
Non-controlling
Foreignrights todifference on Revaluation
ments ofaccumulated
interests
currency
sharesotheravailable-for- reserve fordefinedtranslation
sale
land
benefit comprehensive
adjustment
incomesecurities
plans
Balance at beginning of the year

7,923

(242)

8

(1,250)

6,440

56

404

Total net
assets

293,124

Changes of items during thereporting period
Purchase of shares of
consolidated subsidiaries

213

Dividends of surplus(1,034)

Profit attributable to owners ofparent3,386

Acquisition of treasury stock(7)

Disposition of treasury stock4

Net changes of items other thanshareholders’ equity during thereporting period

2,573

－

(4)

451

3,021

－

(404)

2,616

Total changes of items during thereporting period

2,573

－

(4)

451

3,021

－

(404)

5,179

Balance at end of period

10,497

(242)

4

(798)

9,461

56

－

298,3037

(First half of the fiscal year ending March 31, 2021)(¥ million)
Shareholders’ equity
Common stock
Balance at beginning of the year

27,500Capital surplus

Retained earnings

150,684

114,641

Treasury stock

Total shareholders’equity(814)

292,010

Changes of items during thereporting period
Dividends of surplus(1,034)(1,034)

Profit attributable to owners ofparent

2,057

2,057

Acquisition of treasury stock
Disposition of treasury stock

(3)

(5)

(5)

79

76

Net changes of items other thanshareholders’ equity during thereporting period
Total changes of items during thereporting period
Balance at end of period

－

(3)

1,023

74

1,094

27,500150,680

115,664(740)

293,105

Accumulated other comprehensive income
Valuation
Net
Subscription
Total
Foreign
Non-controlling
difference on deferred
rights to
Revaluation
Remeasurements accumulated
interests
currency
available-forshares
reserve forgains
of defined
other
sale
translation benefit plans comprehensive
land(losses)onsecurities
adjustment
hedgesBalance at beginning of the year

5,629

41

Total net
assetsincome(242)

4(3,038)

2,394

56

－

294,462

Changes of items during thereporting period
Dividends of surplus(1,034)

Profit attributable to owners ofparent2,057

Acquisition of treasury stock(5)

Disposition of treasury stock76

Net changes of items other thanshareholders’ equity during thereporting period

3,975

(0)

－

0

246

4,222

(25)

－

4,196

Total changes of items during thereporting period

3,975

(0)

－

0

246

4,222

(25)

－

5,291

Balance at end of period

9,605

41

(242)

5

(2,791)

6,617

30

－

299,7538

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

(5) Additional information(Accounting estimates related to the impact of COVID-19 pandemic)
With respect to accounting estimates related to the impact of the COVID-19 pandemic for the first half of the fiscal
year ending March 31, 2021, and assumptions used to calculate the estimates thereof, there are no material changes
from the information provided under Additional Information in the Securities Report for the fiscal year ended March 31,
2020.

(6) Significant subsequent event(Establishment of a subsidiary)
At the meeting of its Board of Directors held on October 5, 2020, the Group resolved to establish Kiraboshi Digital
Bank Preparatory Co.,Ltd. (Representative Director: Toshikazu Tanaka, hereafter “Preparatory Company”) and, on
October 30, 2020, established the same as follows. On the premise that approval from relevant authorities will beobtained, the Preparatory Company will proceed with preparations for launching operations of the Digital Bank during
fiscal year 2021.
1. Purpose of establishment
In recent years, digitalization of products and services has accelerated on all fronts, both in life and in business;while customer value, needs and communication tools are becoming more diverse. Further, the COVID-19 pandemic
is prompting a shift to a new lifestyle that presumes moves to go digital and online. All these trends require financial
institutions to provide each and every customer with information, products and services that are more personalized,by the most appropriate means and at the most appropriate timing.
In light of this environment, the Group, as a regional financial institution with its operational base in the Tokyo
area, has decided to establish a new digital bank. Through collaboration with Group companies as well as
administrative agencies and other diverse external organizations, the new bank will seek to contribute to thedigitalization of the area and, by putting the customers’ needs first, flexibly provide seamless comprehensive
services, both financial and non-financial, to customers who will be able to use them through a simple smartphone
application.
Also, in collaboration with Kiraboshi Bank,Ltd. (Representative: Hisanobu Watanabe), a subsidiary of the Group,
the new bank will support, from the digital aspect, the Group’s face-to-face consulting services, which are tailored to
specific customer profiles and strive for further evolution of its “dialogue-based ‘service business that is also strong in
finance’” through highly sophisticated hybrid services combining face-to-face and non-face-to-face services.
Further, the Preparatory Company will adopt an open banking system provided by SBJ DNX, Inc., which has a
10-year of proven track record in Japan, and will aim for its speedy and low-cost implementation through use of Agile
software development.
2. Date of establishment
October 30, 2020
3. Outline of the company
Name of the company

Kiraboshi Digital Bank Preparatory Co.,Ltd.

Address of the head office

3-10-43 Minami Aoyama, Minato-ku, Tokyo

Capital¥450,000,000

Name of the representative

Toshikazu Tanaka, Representative Director

Shareholder

Tokyo Kiraboshi Financial Group, Inc. (voting rights ownership ratio: 100%)

Business description

 Research and preparation work related to obtaining banking business licenseand launch of banking operations
 Construction, designing, creation, development, maintenance andmanagement of computer system to be used in banking business All other work incidental to the preceding items

9

（Reference）
Trust asset balance table(As of September 30, 2020)(¥ million)
Asset
Loans and bills discounted
Loans on deeds
Monetary claims
Other monetary claims
Property, Plant and Equipment

Value

Liability
2,773

Specified money in trust

2,848

2,773

Monetary claims in trust

20,28820,288Composite trusts

16,631

Total

39,76820,28815,979Movables634

Real estate

15,345

Other receivablesSpecified money in trust

00Cash deposits

726

Deposits

726
Total

Value

39,76810

3. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank,Ltd.
(1) Overview of Non-consolidated Financial Statements
November 10, 2020
Company name: Kiraboshi Bank,Ltd.
Representative: Hisanobu Watanabe, President
Responsible person for inquiries: Nobuyuki Yasuda, Director, Managing Executive Officer, General manager of Corporate
Planning Division
URL: https://www.kiraboshibank.co.jp
Telephone: +81-3-6447-5799
Note: Amounts less than one million yen and figures beyond the first decimal place have been truncated.

1. Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2021
(From April 1, 2020 to September 30, 2020)(1) Results in non-consolidated operations (cumulative)(Percentages represent year-on-year changes.)

Ordinary income

Ordinary profit

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

First half of the fiscal year
ending March 31, 2021

41,987

7.3

4,259

18.7

2,688

(27.5)First half of the fiscal year
ended March 31, 2020

39,120

8.2

3,586

26.2

3,712

(5.2)

(2) Non-consolidated financial position
Total assets

Total net assets

Net assets to total assets ratio(¥ million)(¥ million)(%)

First half of the fiscal year
ending March 31, 2021

5,692,127

294,136

5.1

Fiscal year ended March
31, 2020

5,491,038

289,398

5.2(Reference)
Equity: First half of the fiscal year ending March 31, 2021: ¥294,136 million
Fiscal year ended March 31, 2020: ¥289,398 million(Note)“Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculated by dividing
equity by total assets at the end of the period. 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 (Financial Services Agency Notification No. 19 of 2006).

11

○ Non-consolidated Interim Financial Statements(2) Non-consolidated Interim Balance Sheets
Kiraboshi Bank,Ltd.
(¥ million)
As of March 31, 2020

As of September 30, 2020

AssetsCash and due from banks

538,775

671,413

Call loans
Other debt purchased

2,513
74,1702,729
71,779Trading account securities
Money held in trust

1,006
651

1,007
1,132

Securities
Loans and bills discounted

949,175
3,769,814

889,601
3,927,112

Foreign exchange
Other assets

5,593
81,176

16,64647,804

Tangible fixed assets
Intangible fixed assets

63,7763,380

62,437
4,111

Prepaid pension cost
Deferred tax assets

17,10910,212

18,176
7,886

Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses

4,905(31,223)

5,002(34,714)

5,491,038

5,692,127

Total assets
Liabilities
Deposits

4,649,594

4,993,168

Negotiable certificates of deposit
Call money

10,710217,692

9,410
15,499

Payables under securities lending transactions
Borrowed money

256,620
28,359162,447
174,335

Foreign exchanges
Other liabilities

232
27,294160
32,845Reserve for employee bonuses
Provision for directors’ bonuses

1,480
169

1,461
36

Provision for stock compensation
Reserve for point card certificates

128
2

105
2

Reserve for loss on dormant deposit repayments
Provision for loss on cancellation of system contracts

1,318
935

1,287
－

Provision for contingent loss
Deferred tax liabilities for land revaluation

659
1,535

692
1,535

Acceptances and guarantees

4,905

5,002

5,201,639

5,397,991

43,734
166,173

43,734
166,173

Total liabilities
Net Assets
Common stock
Capital surplus
Retained earnings

71,14572,773

Total shareholders’ equity

281,053

282,682

Valuation difference on available-for-sale securities

10,074

13,183Net deferred gains (losses) on hedges
Revaluation reserve for land

41
(1,770)41(1,770)Total valuation and translation adjustments

8,345

11,454

Total net assets
Total liabilities and net assets

12289,398

294,136

5,491,038

5,692,127

(3) Non-consolidated Interim Statements of Income
Kiraboshi Bank,Ltd.
(¥ million)

First half of the fiscal
year ended March 31,
2020

First half of the fiscal
year ending March 31,
2021

39,12029,711

41,98729,525

21,8297,200

22,031
6,108

Trust fees
Fees and commissions

64
7,588

59
5,749

Other operating income
Other ordinary income

900
855

3,134
3,518

35,534
1,260

37,727669

Interest on deposits
Fees and commissions payments

585
1,509

345
1,644

Other operating expenses
General and administrative expenses

336
26,74534
26,966

Other ordinary expenses

5,682

8,412

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities

Ordinary expenses
Financing expenses

Ordinary profit

3,586

4,259

Extraordinary income

0－Gain on disposal of non-current assets
Extraordinary losses

0
38

－

Loss on disposal of non-current assets

38

3

3,547

4,256

Income taxes – current

641

594

Income taxes – deferred

(806)

972

Income before income taxes

3

Total income taxes

(164)

1,567

Net income

3,712

2,688

13