Results briefing for the Fiscal Year Ended
March 31, 2016

June 9, 2016

Contents

Company profile…3◆ Overview of management strategy

Profile of subsidiaries…4

Direction of Tokyo TYFG’s management strategy…21◆ Summary of business results

Tokyo TYFG’s business environment…22

Summary of business results for the fiscal year ended March 31, 2016 (1) [Tokyo
TYFG, two-bank total, and three-bank total]…6(Reference) Open group management to respond to increasingly advanced anddiversifying management needs…23

Summary of business results for the fiscal year ended March 31, 2016 (2)[individual banks]…7

Overview of business plan and synergistic effects…24Plan for the fiscal year ending March 31, 2017…8◆ Overview of profit plan
Net interest income…10
Loans…11
Loans by industry…12
Deposits…13
Securities …14
Yields…15
Assets under management…16
Problem assets subject to disclosure under the Financial Reconstruction Law andcredit-related costs…17Strengthening of service as a financial partner…25 - 27
Strengthening profitability in the near term…28
Strengthen profitability through efforts at three banks…29
Affiliations with Tokyo metropolitan government and related organizations…30
Business tie-up with Sumitomo Mitsui Trust Bank…31◆ Tokyo TYFG after shifting to one-bank system
Direction of Tokyo TYFG’s growth strategy…33
Tokyo TYFG’s vision…34
Target for net core business income…35
Direction of measures to achieve goal…36
Direction of streamlining…37

Capital ratio…18◆ CSR initiatives

Core OHR/ROE…19

CSR initiatives…392

Company profile■ Major Group companies■ Management philosophy

To be a financial group for small and medium-sized enterprisecustomers and individual customers in the Tokyo metropolitan areathat will contribute to the development of local communities throughcomprehensive financial services.
Tokyo Tomin Bank

Yachiyo Bank

ShinGinko Tokyo■ Basic strategy■ Company history
December 1924
December 1951
September 2000
May 2001
June 2001

April 2004
From November 2011
October 2014

September 2015

December 2015

April 2016

Founded The Yachiyo Bank, Limited
Established The Tokyo Tomin Bank, Limited
Signed Memorandum of Understanding regarding consideration of a businesscooperation
Commenced free use of ATMs for each other’s customers
Commenced common mailing system between branches and head office- Sales of joint deposit products Established ShinGinko Tokyo, Limited
Joint holding of business exhibitions by The Tokyo Tomin Bank, Limited and The
Yachiyo Bank, Limited
Business integration by The Tokyo Tomin Bank, Limited and The Yachiyo
Bank, Limited
Established Tokyo TY Financial Group, Inc.
Final agreement regarding business integration between Tokyo TY Financial
Group, Inc. and ShinGinko Tokyo, Limited
Signed the Agreement on a Comprehensive Affiliation for Industrial
Development in Tokyo with the Tokyo metropolitan government
Resolved to proceed with concrete reviews and preparations for a three-bankmerger by The Tokyo Tomin Bank, Limited, The Yachiyo Bank, Limited, andShinGinko Tokyo, Limited around FY2017
Business integration between Tokyo TY Financial Group, Inc. and ShinGinko
Tokyo, Limited

As one of the largest regional financial institutions headquartered in Tokyo, wewill establish a new business model and increase our competitive advantage inthe urban-style regional banking market in the Tokyo metropolitan area.

As a financial institution serving small and medium-sized enterprises andindividuals, we will increase our level of community contribution bydemonstrating our high-level financial service functions such as consulting andour function of providing stable financing.



Against a backdrop of high profitability and soundness, we will work to increase
the motivation of our bank employees, and take up the challenge of our growthstrategies with a sense of unified purpose.

■ Vision aimed for

Become the urban regional bank group most favoredby customers in the Tokyo metropolitan area.
3

Profile of subsidiaries■ Profile of subsidiaries

Establishment
Head office location
Capital

As of March 31, 2016

The Tokyo Tomin Bank, Limited

The Yachiyo Bank, Limited

ShinGinko Tokyo, Limited

December 12, 1951

December 6, 1924 (founding date)

April 1, 2004*

2-3-11, Roppongi, Minato-ku, Tokyo

5-9-2 Shinjuku, Shinjuku-ku, Tokyo

1-21-1 Nishishinjuku, Shinjuku-ku, Tokyo

48,120 million yen

43,734 million yen

20,000 million yen

Total assets

2,791,960 million yen

2,324,249 million yen

459,169 million yen

Net assets

90,491 million yen

109,626 million yen

60,055 million yen

Number of employees

1,474

1,575

140

Number of branches(including sub-branches)

78

84

1

* The date that the Tokyo metropolitan government acquired all of the shares in BNP Paribas Private Bank Ltd. to establish ShinGinko Tokyo is given as the date on which ShinGinko Tokyo was established. The date on which it
was established as a corporation was April 5, 1999.

4

Summary of business results5Summary of business results for the fiscal year ended March 31, 2016 (1)[Tokyo TYFG, two-bank total, and three-bank total]
Results for Tokyo TYFG (consolidated)■ Business performance(¥ billion)○Recorded ordinary profit of 14.4 billion yen and profit attributable to owners of parent of 9.4 billion yen.
* As Tokyo TYFG was established in October 2014, the following items were included in the consolidated results

Tokyo TYFG (Consolidated)

FY2014FY2015YoY

of Tokyo TYFG for the previous fiscal year (FY2014).

FY2015 plan

Achievement
rate

Ordinary profit

11.8

14.4

2.6

12.9

111.6%

Profit attributable to owners of parent

57.2

9.4

(47.8)

8.5

110.5%・ Consolidated results for Tokyo Tomin Bank, which is the acquiring company for accounting purposes, for the
12-month period from April 2014 to March 2015
・ Consolidated results for Yachiyo Bank, which is the acquired company for accounting purposes, for the 6month period from October 2014 to March 2015
・ Non-consolidated results for Tokyo TYFG from October 2014 to March 2015
・ Other adjustments from consolidated closing (gain on bargain purchase of 50.4 billion yen)Two-bank total (non-consolidated) for Tokyo Tomin Bank andYachiyo Bank
FY2014FY2015Three-bank total (non-consolidated) for Tokyo Tomin Bank,
Yachiyo Bank, and ShinGinko Tokyo
FY2014

ChangeFY2015

Change(1) Ordinary income

85.4

79.7

(5.7)

92.7

(2) Gross business profit(3) Gross core business profit

71.4
68.4

68.4
66.2

(3.0)
(2.2)

77.1
73.7

74.3
72.4

(2.8)
(1.3)

(4) Net interest income

56.6

54.3

(2.3)

61.7

60.3

(1.4)

(5) Net fees and commissions

9.7

9.7

(0.0)

9.9

9.8

(0.1)

(6) Other business income

5.0

4.3

(0.7)

5.4

4.1

(1.3)

3.0

2.1

(0.9)

3.3

1.9

(1.4)

(8) Expenses

54.5

53.5

(1.0)

58.4

57.4

(1.0)

(11) Net core business income

13.9

12.7

(1.2)

15.3

14.9

(0.4)

(12) Transfer to reserve for general possible loan losses

(0.8)

(0.4)

0.4

(13) Net business income

17.7

15.3

(2.4)

(0.8)

(0.4)

0.4

19.5

17.4

(2.1)

(1.8)

0.1

1.9

3.6

2.7

(0.9)

(7) Of which, gains (losses) on bonds, etc.

(14) Non-recurring profit (loss)

88.9

(3.8)

(1.5)

(1.4)

0.1

(15) Of which, loss from write-off of nonperforming loans

3.5

2.6

(0.9)

(16) Of which, gains (losses) on stocks andother securities

0.4

0.1

(0.3)

0.4

0.1

(0.3)

(17) Ordinary profit

16.1

13.9

(2.2)

17.7

17.6

(0.1)

(18) Extraordinary profit (loss)

(0.0)

0.2

0.2

(0.0)

0.2

0.2

(19) Income taxes

6.5

5.1

(1.4)

6.5

4.9

(1.6)

(20) Net income

9.5

9.0

(0.5)

11.0

12.9

1.9

Credit-related costs

1.1

1.9

0.8

0.8

0.3

(0.5)

*All figures less than 1 million yen have been rounded down in the amounts displayed above.
*Net fees and commissions include trust fees for a public works payment receivables trust from ShinGinko Tokyo, Limited.

Results for the three-bank total (nonconsolidated)○ Gross core business profit fell 1.3 billion yen
YoY to 72.4 billion yen as a result of a decreasein net interest income, etc. due in part to a
decline in yields on interest-earning assets.
○ Expenses decreased 1.0 billion yen YoY to 57.4
billion yen due to factors including a decline indeposit insurance premiums.
○ Credit-related costs decreased 0.5 billion yen
YoY due to business conditions at customers
being relatively stable and the recording of areversal of allowances at ShinGinko Tokyo.
Credit costs remained low.
○ Ordinary profit decreased 0.1 billion yen YoY
to 17.6 billion yen, while net income increased
1.9 billion yen YoY to 12.9 billion yen due tofactors including a decrease in income taxes.

6Summary of business results for the fiscal year ended March 31, 2016 (2)[individual banks]
Results for individual banks○ At Tokyo Tomin Bank and Yachiyo Bank, net interest income decreased due to continued low interest rate levels as a result of intensified loaning competition and monetaryeasing. While credit-related costs increased YoY, they remained at low levels.
○ At ShinGinko Tokyo, net interest income increased due to factors including an increase in the loan balance, mainly for small and medium-sized enterprises. In credit-related costs,
there was a large reversal due to factors including a decline in the uncollectible accounts rate and changes in the calculation method for the reserve for loan losses in order tostandardize accounting standards accompanying business integration.

■ Business performance(¥ billion)

Tokyo Tomin Bank (non-consolidated)
FY2014FY2015

Yachiyo Bank (non-consolidated)

ChangeFY2014FY2015

ShinGinko Tokyo (non-consolidated)

ChangeFY2014FY2015

Change(1) Ordinary income

44.4

42.4

(2.0)

41.0

37.3

(3.7)

7.2

9.1

1.9

(2) Gross business profit(3) Gross core business profit

37.8
37.2

35.8
35.2

(2.0)
(2.0)

33.6
31.2

32.6
30.9

(1.0)
(0.3)

5.6
5.2

5.9
6.1

0.3
0.9

(4) Net interest income

29.2

28.2

(1.0)

27.3

26.1

(1.2)

5.0

6.0

1.0

(5) Net fees and commissions

6.3

5.5

(0.8)

3.3

4.2

0.9

0.2

0.1

(0.1)

(6) Other business income

2.1

2.0

(0.1)

2.9

2.2

(0.7)

0.3

(0.2)

(0.5)

0.6

0.5

(0.1)

2.4

1.6

(0.8)

0.3

(0.2)

(0.5)

(8) Expenses

28.8

28.4

(0.4)

25.7

25.1

(0.6)

3.8

3.8

(0.0)

(11) Net core business income

8.3

6.8

(1.5)

5.5

5.8

0.3

1.3

2.2

0.9

(12) Transfer to reserve for general possible loan losses

(0.8)

(0.4)

0.4

-

-

-

(13) Net business income

9.8

7.8

(2.0)

7.9

7.4

(0.5)

-

-

-

(14) Non-recurring profit (loss)

(2.9)

(1.1)

1.8

1.4

(0.2)

(1.6)

1.7

2.0

0.3

-

-

-

1.4

0.2

(1.2)

(0.2)

1.6

1.8

(16) Of which, loss from write-off of nonperforming loans

0.5

1.2

0.7

2.3

2.2

(0.1)

1.1

0.3

(0.8)

0.1

0.1

(0.0)

(17) Of which, gains (losses) on stocks and othersecurities

0.1

0.6

0.5

0.2

(0.4)

(0.6)

-

-

-

(18) Ordinary profit

6.8

6.7

(0.1)

9.3

7.1

(2.2)

1.5

3.7

2.2

(19) Extraordinary profit (loss)

(0.0)

0.1

0.1

(0.0)

0.0

0.0

-

(0.0)

(0.0)

(20) Income taxes

3.2

2.6

(0.6)

3.2

2.4

(0.8)

0.0

(0.2)

(0.2)

(21) Net income

3.4

4.2

0.8

6.0

4.7

(1.3)

1.5

3.9

2.4

Credit-related costs

1.5

1.8

0.3

(0.3)

0.1

0.4

(0.3)

(1.5)

(1.2)

(7) Of which, gains (losses) on bonds, etc.

(15) Of which, reversal of allowance for loan losses*All figures less than 1 million yen have been rounded down in the amounts displayed above.
*ShinGinko Tokyo’s net fees and commissions include trust fees for a public works payment receivables trust.

7Plan for the fiscal year ending March 31, 2017
■ FY2016 plan (Tokyo TYFG consolidated)(¥ billion)

FY2016 plan
○ With regard to the indicators targeted for FY2016 as announced on October 29, 2014 in “Tokyo TY

FY2015 results

FY2016 plan

Financial Group Business Plan,” we have revised the plan to take into account the impact ofchanges in the internal and external environments such as negative interest rates and theOrdinary profit

14.4

8.9

Profit attributable to owners of parent

9.4

25.1*

business integration between Tokyo TYFG and ShinGinko Tokyo.
○ In the plan for FY2016, Tokyo TYFG projects ordinary profit of 8.9 billion yen and profit
attributable to owners of parent of 25.1 billion yen, including a gain on bargain purchase of 19.4
billion yen accompanying business integration with ShinGinko Tokyo.

* The FY2016 plan includes the plan for ShinGinko Tokyo that became part of the Tokyo TYFG Group in April 2016.
In addition, the plan for profit attributable to owners of parent for FY2016 includes a gain on bargain purchase of 19.4 billion
yen accompanying business integration with ShinGinko Tokyo.

■ FY2016 plan (three-bank total and individual banks)(¥ billion)

Total for three banks
FY2015
results

Gross core business profit

FY2016
plan

Tokyo Tomin Bank (non-consolidated)
ChangeFY2015
results

FY2016plan

Yachiyo Bank (non-consolidated)

ChangeFY2015
results

FY2016
plan

ShinGinko Tokyo (non-consolidated)

ChangeFY2016plan

FY2015
results

Change

72.4

71.6

(0.8)

35.2

36.3

1.1

30.9

30.2

(0.7)

6.1

5.0

(1.1)

60.3

58.4

(1.9)

28.2

28.3

0.1

26.1

25.0

(1.1)

6.0

5.0

(1.0)

Expenses

57.4

57.5

0.1

28.4

28.1

(0.3)

25.1

25.2

0.1

3.8

4.1

0.3

Net core business income

14.9

14.1

(0.8)

6.8

8.1

1.3

5.8

5.0

(0.8)

2.2

0.8

(1.4)

Credit-related costs

0.3

4.0

3.7

1.8

2.5

0.7

0.1

1.3

1.2

(1.5)

0.2

1.7

Ordinary profit

17.6

11.0

(6.6)

6.7

5.0

(1.7)

7.1

5.1

(2.0)

3.7

0.8

(2.9)

Net income

12.9

7.9

(5.0)

4.2

3.5

(0.7)

4.7

3.6

(1.1)

3.9

0.7

(3.2)

Ordinary profit(consolidated)*

19.1

11.1

(8.0)

7.8

4.5

(3.3)

7.6

5.7

(1.9)

-

-

-

Profit attributable to owners ofparent (consolidated)*

13.6

7.2

(6.4)

4.7

2.5

(2.2)

4.9

3.9

(1.0)

-

-

-

Of which, net
interest income* The figures for the consolidated three-bank total are the total for Tokyo Tomin Bank and Yachiyo Bank on a consolidated basis, and ShinGinko Tokyo on a non-consolidated basis.

8

Overview of profit plan9

Interest income■ Status of interest income (three-bank total)(¥ billion)
Account

Item

FY2014FY2015

ChangeSecure loan yields by leveraging competitive advantages

Average balance

3,402.9

3,477.5

+74.6

Yield

1.53

1.41

-0.12

Interest

52.2

49.1

-3.1

Average balance

1,338.1

1,361.1

+23.0

Yield

0.93

1.04

+0.11

Interest anddividends

12.4

14.2

+1.8

Average balance

4,660.0

4,728.1

+68.1

Yield

0.06

0.06

±0

Interest

3.2

3.0

-0.2

Loan

■ Measures to improve interest income○ While a decline in loan yields is expected as a result of the impact of negative interest rates, efforts will be madeto leverage competitive advantages in order to scale down the amount of reduction by strengthening theconsulting function through implementation of measures in affiliation with the Tokyo metropolitan government,
etc.

Securities

Deposits

Flexible management of securities○ Secure yields through flexible asset management while keeping a close watch on interest rate trends.
Improve procurement costs (the deposit yield) through measures such as reviewing preferential interest rate
products■ Status of interest income (by bank)○ Improve the deposit yield through means such as reviewing each preferential interest rate deposit product andthe interest rate premiums on large time deposits, and reinforcing demand deposits.

■ Status of interest income (by account)(Figures within brackets are changes compared to end of the previous fiscal year; percentages are change rates)(Figures within brackets are changes compared to end of the previous fiscal year; percentages are change rates)(¥ billion)
ShinGinko Tokyo

YachiyoTokyo Tomin

62.4
4.3

27.9

30.2

FY2013*1. Other interest income is excluded.
2. Interest on negotiable certificates of deposit is included.

61.4
4.5

26.9

29.9

FY2014[-1.1] -1.7%[+1.0] 22.2%[-1.3] -4.8%[-0.8] -2.6%

60.3
5.5

25.6

29.1

FY2015(¥ billion)[-2.0] -3.3%[-0.9] -16.3%[-1.0] -3.9%

58.3
4.6

62.4

61.4

[-1.1] -1.7%

Interest anddividends on
securities

60.3

11.8

12.4

[+1.8] 14.5%

14.2

Interest on loans
and discounts

54.0

52.2

[-3.1] -5.9%

49.1

Interest on deposits

(3.4)

(3.2)

[+0.2] 6.2%

(3.0)

FY2013

FY201424.6[±0.0] ±0%29.1

FY2016 plan

FY201510

Loans■ Composition of balance by region (three-bank total)

Loan balances(As of end of March 31, 2016)○ In the total loans for the three banks, 78.8% were loans for small and medium-sized enterprises and individuals, while in the regional

Kanagawa
Prefecture
15%

breakdown, Tokyo metropolis and Kanagawa Prefecture accounted for 99% of loans.
○ The three-bank total deposit-loan ratio was 74.4%.
○ Finance for small and medium-sized enterprises was enhanced through the opening of the Tokyo Tomin Bank Shinbashi Corporate Sales

Other
1%

Division and the Yachiyo Bank Yokohama-Nishiguchi Branch, and the establishment of the ShinGinko Tokyo Corporate Consultation
Headquarters.

By region○ Enhanced lineup of financial products supporting small and medium-sized enterprises including “Jigyou no Chikara (Strength of Business)”Tokyo
metropolis
84%

and “Chizai no Chikara (Strength of Intellectual Property)” in cooperation with the Tokyo metropolitan government’s New Guaranteed Loan
Program and the Tokyo Metropolitan Small and Medium Enterprise Support Center.

■ Loan balance by bank

■ Loan balance by type of customer (three-bank total)(The numbers in white are average balances for the term; figures within brackets are changes compared to
end of the previous fiscal year; percentages are change rates)(¥ billion)
ShinGinko Tokyo

Yachiyo

3,301.8

3,402.9[+74.6] 2.1%

3,425.8
167.0

3,494.8
200.7[+87.4] 2.5%

1,427.2

1,466.0[+21.8] 10.8%[+51.5] 3.5%

(The numbers in white are average balances for the term; figures withinbrackets are changes compared to end of the previous fiscal year)

3,477.5[+102.7] 2.9%

3,580.2

3,582.2
222.5[+32.7] 0.9%

3,614.9(¥ billion)[+12.4] 5.5%

234.9

Local
governments

1,517.5[-2.5] -0.1%

1,515.0

Medium andlarge-sizedcompanies

SMEs

Tokyo Tomin

1,831.5

1,828.1[+14.0] 0.7%

1,842.1[+22.9] 1.2%

FY2014FY2015

3,402.9[+74.6] 2.1%

3,425.8
155.5
575.9

3,494.8
161.1
566.4

[+87.4] 2.5%[+22.8] 14.1%

3,582.2
183.9[+8.4] 1.4%

574.8

1,854.7

1,917.4[+48.9] 2.5%

1,966.3

839.6

850.3

[+6.9] 0.8%857.2

FY2013

FY2014

1,865.0
Individuals

FY20133,477.5

3,301.8

FY2016 plan

FY201511

Loans by industry■ Composition of loans by industry (three-bank total)(As of end of March 31, 2016)

Loan balance by industry○ Industries are relatively diversified, and the balance of loans by industry is composed of a wellOther
14%

balanced portfolio.

Manufacturing
10%

Commerce
11%
Banks and otherfinancial
institutions
7%

Housing-related loans○ Efforts were made to promote housing related loans at specialty offices of Tokyo Tomin Bank Loan
Individuals
24%

Plaza (four locations) and Yachiyo Bank Loan Center (five locations) and increase total transactions

3,582.2 billion
yenwith individuals through means such as work-site sales to the employees of customers by branches.
Real estateleasing12%Services10%■ Loan balance by industry (three-bank total)

Construction
5%

Real estate
brokerage
8%(Figures within brackets are changes compared to end of the previous fiscal year)(¥ billion)

3,494.8[+87.4]

359.5
168.1
404.6

352.1
181.4
402.5

[-10.0]

269.2
229.0

245.8
251.1

[-5.4]

408.2

409.1

3,425.8■ Housing-related loans (Tokyo Tomin Bank and Yachiyo Bank)

3,582.2(Figures within brackets are changes compared to end of the previous fiscal year)

342.1
183.8
394.3

Manufacturing

Banks and otherfinancial institutions[+35.4]

240.4
286.5

[+14.6]423.7

Real estate leasing[+2.4][-8.2]

Construction
Commerce

Real estate brokerage

328.5

346.9

[+11.8]358.7

Services

839.6

850.3

[+6.9]

857.2

Individuals

418.7

455.2

FY2013

FY2014[+39.9]495.1
FY2015

657.2

680.1

[+11.0]

691.1

316.2

327.6

[-4.3]

Yachiyo323.3

Tokyo Tomin

341.0

352.5

[+15.3]367.8

FY2013

FY2014(¥ billion)

Other

FY2015*ShinGinko Tokyo does not handle housing-related loans.

12Deposits■Composition of deposit balance by region (three-bank total)(As of March 31, 2016)

Deposit balance
Kanagawa
Prefecture
20%○ The deposit balance increased, particularly corporate demand deposits and public funds.
○ By region, Tokyo metropolis and Kanagawa Prefecture accounted for 98% of the balance.

Other
2%

○ Efforts made to increase balances and average balances by promoting the acquisition of corporate
demand deposits as well as pension and salary payment accounts and by increasing personal deposits
By region

through the handling of deposit products in response to the needs of various generations.
Tokyo
metropolis78%■ Deposit balance by bank

■Deposit balance by client (three-bank total)(The numbers in white are average balances for the term; figures within brackets are changes compared to end of the previous
fiscal year; percentages are change rates)(The numbers in white are average balances for the term; figures within brackets are changes compared to end of theprevious fiscal year; percentages are change rates)

4,561.6

4,660.0[+68.1] 1.4%

4,728.1[+35.3] 0.7%

4,647.0
ShinGinko Tokyo
199.1

4,764.0
261.5[+44.4] 0.9%

4,808.4
293.4[+23.1] 0.4%(¥ billion)

YachiyoTokyo Tomin

2,079.1

2,122.7

2,368.7

2,379.7

FY2013

FY2014* Negotiable certificates of deposit are not included.

[+31.9] 12.1%[+1.8] 0.0%[+10.7] 0.4%

2,124.5

2,390.4

FY2015[-16.9] -5.7%[+29.5] 1.3%[+10.6] 0.4%

4,763.4
4,831.5
276.5

4,561.6

4,660.0[+68.1] 1.4%

4,728.1

4,647.0
77.2

4,764.0
98.4[+44.4] 0.9%

Local
governments, etc.

[+66.7] 67.7%

4,808.4
165.1

Corporate

1,293.2

1,344.2[+21.0] 1.5%

1,365.2

Individuals

3,276.5

3,321.4[-43.5] -1.3%

3,277.9

FY2013

FY2014(¥ billion)

2,154.0

2,401.0

FY2016 plan

FY201513

Securities■ Duration

Securities balance○ While the balance decreased due to restraint in reinvestments in government bonds
corresponding to redemption at Yachiyo Bank from the perspective of mitigating interest raterisk and securing yields, yields increased as a result of factors including efforts towards

Yachiyo

5.5

Tokyo Tomin

5.2

ShinGinko Tokyo

4.5

investment diversification.
○ Within an environment of continued low interest rates, efforts will be made to thoroughly

5.5 years

5.3
4.7

4.4 years
4.5

4.0 years

ensure management of investment volumes, the amount of risk, and duration as we keep a close
watch on market trends while securing profits through flexible and diversified investments in

FY2013

instruments including US government bonds, corporate bonds, and investment trusts.

FY2015
16/3

FY2014■ Securities balance and yields by bank (three-bank total)(The numbers in white are average balances for the term; figures within brackets are changes
compared to end of the previous fiscal year; percentages are change rates)

0.86(¥ billion)

1,363.1
1,328.8

ShinGinko Tokyo

187.0

Yachiyo

628.6

0.93

[+0.11 pt]

1.04%(The numbers in white are average balances for the term; figures within brackets are changes
compared to end of the previous fiscal year; percentages are change rates)

1,338.1
1,393.3
169.2
637.9

[+23.0] 1.7%

1,361.1[-20.1] -1.4%

1,373.2[+3.1] 1.8%

172.3

513.1

586.2

1,363.1(¥ billion)
Other securities
Stock[-24.0] -3.7%

613.9[+0.7] 0.1%
Tokyo Tomin■ Securities balance by investment (three-bank total)

FY2014[+23.0] 1.7%[-20.1] -1.4%

154.4
47.6

[+58.8] 38.0%

427.0[+13.4] 3.1%

120.1[+3.7] 3.0%

686.4

644.0

[-88.2] -13.6%

FY2013

FY2014

Corporate bonds

420.2

Municipal bonds

120.2[-7.8] -16.3%

FY2015

1,361.1
1,373.2
213.2
39.8
440.4

123.8

586.9
Government
bonds

FY2013

1,328.8
62.2
39.5

1,338.1
1,393.3

555.8

FY201514

Yields■ Yields (three-bank total)
Loan yield(Figures within brackets are changes compared to
end of the previous fiscal year)○ Loan yields continue to fall due to the fact that the impact on funding demand by SMEs remains limited,competition continues to intensify, and negative interest rates have been introduced.
Measures to improve the loan yield

1.63

Loan yield○ Through the promotion of financial platform service “Club TY” and joint measures with the Tokyo metropolitan
government, work to provide high-value-added service and fine-tuned support, improve relationships of trust with

Yield difference

1.56

clients, and leverage competitive advantages in order to scale down the amount of reduction in loan yields.

[-0.12 pt]

1.53[-0.11 pt]

1.41

1.47

1.35

[-0.12 pt]○ For FY2016, the loan yield is expected to drop by 0.11 points YoY to 1.30% for the three-bank total.

1.30%
1.25%
[-0.10 pt][±0.00 pt]
Deposit yield■ Yields (Yachiyo)■ Yields (Tokyo Tomin)

0.06

0.06

0.05%

FY2013

FY2014FY2015FY2016plan
FY2016plan
17/3計画■ Yields (ShinGinko Tokyo)(Figures within brackets are changes compared to
end of the previous fiscal year)(Figures within brackets are changes compared to
end of the previous fiscal year)(Figures within brackets are changes compared to
end of the previous fiscal year)

1.92
Loan yield

1.59[-0.11 pt]

1.50

1.36

Yield difference

1.54

1.66

[-0.14 pt]

1.45[-0.13 pt]

1.32

1.25%
[-0.10 pt]

1.60[-0.01 pt]

0.07

1.55
1.49

[-0.12 pt]

1.38

1.55%

[-0.09 pt]

1.29%

1.46 [-0.04 pt] 1.42[-0.19 pt][-0.02 pt][-0.01 pt]
Deposit yield[-0.01 pt][-0.01 pt][-0.18 pt]

1.33%
1.57

1.22%

1.73

[-0.10 pt]

1.43[-0.11 pt][-0.06 pt]

1.79[-0.01 pt]

0.05

0.05

0.04

0.03%

0.06

0.06

0.05

0.04%

FY2013

FY2014FY2015FY2016 plan

FY2013

FY2014FY2015FY2016 plan

1.23%[+0.01 pt]

0.35

0.33

0.31

0.32%

FY2013

FY2014FY2015FY2016 plan

15

Assets under management

Yachiyo

Sales structure for financial products to individuals<Tokyo Tomin Bank>・ Sales are conducted mainly by customer sales department personnel, sales department personnel responsible forindividual customers outside the branches, and money consultants.
In addition, asset management partners and asset management advisors are also stationed at each branch.
<Yachiyo Bank>・ An asset management manager and at least one asset management representative are assigned to each branch.
Furthermore, area money advisors who conduct activities spanning multiple branches have been assigned since April
2015.

■ Commissions on assets under management by bank

Tokyo Tomin

Status of assets under management (Tokyo Tomin Bank and Yachiyo Bank)○ While the two banks focused on sales in assets under management through efforts including the sales of joint
investment trust products by both banks and the implementation of joint training, the investment trust balance
decreased 3.5 billion yen compared to end of the previous fiscal year in terms of the total for the two banks due to a
decline in the base value of investment trusts.
○ The insurance balance grew 17.1 billion yen compared to end of the previous fiscal year in terms of the total for bothbanks, mostly for single-premium whole life insurance.
○ Commissions fell YoY in terms of the total for both banks, underpinned by an unstable investment environment.

(¥ billion)

FY2013

FY2014FY2015Investment
trusts

3.16

3.75

2.56

(1.19)

Insurance

0.75

0.86

0.96

0.1

Public bonds

0.02

0.02

0.01

(0.01)

Total

3.93

4.63

3.53

(1.10)

Investment
trusts

0.81

1.24

1.32

0.08

Insurance

0.30

0.48

0.73

0.25

Public bonds

0.06

0.06

0.03

(0.03)

1.19

1.79

2.09

0.30

Total

■ Balance of assets under management by bank

■ Balance of assets under management by item (two-bank total)(Figures within brackets are changes compared to end of the previous fiscal year)(Figures within brackets are changes compared to end of the previous fiscal year)(¥ billion)

YachiyoTokyo Tomin

479.1

185.0

294.0

FY2013

500.7

196.5

304.2

[-4.1][+14.4][-18.5]FY2014*ShinGinko Tokyo does not handle investment trusts, insurance, etc.

496.6

YoY

(¥ billion)

479.1

Public bonds

104.2

500.7

[-4.1]

496.6

82.7

[-17.7]

65.0

190.7

[+17.1]

207.8

227.2

[-3.5]

223.7

210.9
Insurance

185.0

Investment trusts

189.9

285.7

FY2015
16/3

FY2013

FY2014FY2015
16/3

16

Problem assets subject to disclosure under the Financial Reconstruction
Law and credit-related costs
Amount and ratio of problem assets subject to disclosure under the Financial Reconstruction Law (inthe case of partial direct write-offs)■ Amount and ratio of problem assets subject to disclosure under the Financial
Reconstruction Law (three-bank total) [In the case of partial direct write-offs](Figures within brackets are changes compared to end of the previous fiscal year)○ The disclosure assets amount fell by 24.4 billion yen compared to end of the previous fiscal year forthe three-bank total, while disclosure assets ratio dropped by 0.75 points to improve to 2.48%.

3.79
Disclosure assets ratio

Credit-related costs○ Credit-related costs remained low due to factors including the fact that the business conditions ofborrowers have been relatively stable and the focus placed on reconstruction support.

130.8
7.9

(¥ billion)
Substandard loans

110.3
Doubtful assets

3.23

2.48％
114.2
6.7

98.7

12.5

8.7

FY2013

FY2014Bankrupt and quasibankrupt assets[-0.75 pt][-24.4][-1.4]

89.8
5.3[-21.6]77.1
7.4[-1.3]FY2015
16/3*While the three banks did not make any partial direct write-offs, this states the figures in the case of partial direct write-offs.

■ Credit-related costs (three-bank total)(Figures within brackets are changes compared to end of the previous fiscal year)■ Coverage status of problem assets subject to disclosure under the Financial
Reconstruction Law (three-bank total) [Before partial direct write-offs](¥ billion)(¥ billion)
FY2015

Covered amount

5.09

0.83
FY2013

FY2014[-0.47]0.36
FY201516/3

80.0

Reserve for possible loan losses

21.2

Collateral, guarantees, etc.

58.8

Problem assets

97.3

Coverage ratio

82.2%

17

Capital ratio■ Consolidated capital ratio (Tokyo TYFG)
10.38
9.26

Capital ratio

Tokyo TYFG’s consolidated capital ratio

9.66%○ Signed business and capital alliance contract with Sumitomo Mitsui Trust Bank, Limited on June 3,

8.65

2016.
○ 15 billion yen of Type 1 preferred stock issued through a third-party allotment to Sumitomo Mitsui(¥ billion)

Trust Bank, Limited on June 24, 2016. The financing was appropriated through an investment in

Net assets

the subsidiary Tokyo Tomin Bank.

300.1
229.8

222.6

○ In the first half of FY2016, the consolidated capital ratio is projected to increase to 10.38% with the281.6

addition of ShinGinko Tokyo to the scope of consolidation and the issuance of preferred stock.
○ Tokyo TYFG’s consolidated capital ratio for FY2016 is projected to be 9.66% due in part toredemption of subordinated loans and subordinated bonds at Tokyo Tomin Bank.

FY2014FY2015FY2016/Sept.
(projection)

FY2016/Mar.
(projection)* Because Tokyo TYFG was established in October 2014, the results from FY2014 are displayed.
* Because ShinGinko Tokyo underwent business integration with Tokyo TYFG in April 2014, it is not included in the results for
FY2014 and FY2015.

■ Consolidated capital ratio (Tokyo Tomin)

Capital ratio

8.94

8.35

7.73

7.33%

120.7

115.2

108.8

105.1

■ Consolidated capital ratio (Yachiyo)
10.19

9.81

9.50

9.81%

107.4

107.4

110.3

113.5

■ Capital ratio (ShinGinko Tokyo non-consolidate)
22.42

20.50

19.68

19.16%

52.1

56.9

60.5

61.3

FY2013

FY2014FY2015FY2016 (projection)(¥ billion)
Net assets

FY2013

FY2014FY2015FY2016 (projection)

FY2013

FY2014FY2015FY2016 (projection)

18

Core OHR/ROE
Core OHR○ Core OHR increased by 0.05 points compared to end of the previous fiscal year for thethree-bank total to 79.29% due to a decrease in gross core business profit as a result offactors including a decline in yields on interest-earning assets, despite decreases in
expenses.
○ 80.3% is projected for FY2016, as a decrease in core business gross profit is expected.

■ Core OHR (three-bank total)

81.02

80.3%
[+0.05 pt]

79.24

FY2013

FY201479.29

FY2015

ROE (consolidated)○ Three-bank total ROE (consolidated) improved to 5.24% thanks to an increase in net
income on a three-bank basis.

FY2016 plan

■ ROE (consolidated)<Core OHR for each bank>

FY2013

FY2014FY2015FY2013

FY2016 plan

FY2014FY2015

Tokyo Tomin Bank

79.50%

77.45%

80.58%

77.4%

Tokyo Tomin Bank

6.14%

4.89%

5.08%

Yachiyo Bank

83.58%

82.33%

81.04%

83.3%

Yachiyo Bank

5.96%

6.12%

4.53%

ShinGinko Tokyo

76.04%

73.59%

63.07%

82.2%

ShinGinko Tokyo

1.69%

2.79%

6.82%

Three-bank total

81.02%

79.24%

79.29%

80.3%

Three-bank total

5.08%

4.95%

5.24%

*Core OHR =Expenses
Gross core businessprofit× 100*ROE (consolidated) =Profit attributable to owners of parent(Net assets at the beginning of the period + net assets
at the end of the period) ÷2

× 100* The consolidated figures are calculated as the total for Tokyo Tomin Bank and Yachiyo Bank on
a consolidated basis, and ShinGinko Tokyo on a non-consolidated basis.

19

Overview of management strategy

20

Direction of Tokyo TYFG’s management strategy

Direction of the management strategy of the Tokyo TY Financial Group○ Evolution from a banking business into a comprehensive financial services business・ In addition to traditional banking services such as deposits and loans, offer comprehensive proposals of all types offinancial and related services including core business support (consulting), trusts, financial products, and leases.
○ Advisor with the spirit of closely listening to customers
・ Being a partner with the spirit of always closely listening to SME and individual customers in the Tokyo area, and that
customers consult with from the beginning
・ Aim to be an “all-around supporter” for SMEs and a “day-to-day financial advisor” for individuals○ Open group management
・ As a regional financial institution group in the Tokyo area, work together with a large number of external partners (local
government organizations, related organizations, economic organizations, financial institutions, various funds, specialists
including lawyers and tax accountants, etc.) in an effort to maximize know-how and strength.

21

Tokyo TYFG’s business environment○ Market potential of the Tokyo area is high, and there are myriad business opportunities considering the environmental

changes assumed in the future.
○ SMEs are not satisfied with current banking services, so there is room for differentiation from other banks.
■ Market characteristics of the Tokyo area
Individuals■ Needs of customers (medium-sized companies and SMEs)
Corporate

While medium-sized companies and SMEs have various management issues that go
beyond financing, the level of attractiveness of services provided by banks is limited[Management issues recognized by SME managers]> Population of over 14 million> Presence of many senior citizens
due to the advance of population
aging> Large numbers of investors andwealthy people due to being thepolitical and economic center> Over 260,000 SMEs
> Robust needs for overseas
expansion> Multitude of M&As, businessstartups, and closing businesses> Abundance of specialized
knowledge including lawyers, tax
accountants, and accountants> Expansion of peripheral funding demand through further urban andinfrastructure development (example: holding of Olympics, linear motor
trains)> Increase in number of inbound customers through the promotion of tourism

Environmental changes assumed
in the future

Sales anddevelopmentof saleschannels

Product
development

Maintenance and strengthening ofsales capabilities and marketing
capabilities

39%
Dissatisfied

Development of new customers
and sales channels

17%

Development of new products andnew services

6%

Making existing products morevalue-added

4%

Technology
development

Development, maintenance, andstrengthening of technical capabilities

5%

Production

Reinforcement and renewal of
facilities

Human
resources andmanagement

3%

Securing and development of humanresources
Development and selection of
successors[Satisfaction towards support offinancial institutions]> Non-financial services

Satisfied

Don't feel either way> Financial services
7%

Status quo is
acceptable

3%

Securing capital investment funds

1%

Securing operating capital

9%

Financing

Source: Small and Medium Enterprise Agency

Would like
improvements22

(Reference) “Open group management” to respond to increasingly advanced and diversifying
management needs
Industry, government, academia, public
sector, and finance partnerships
Lawyers andtax
accountants
Fund(Reconstructio,PE)

Ministry of
Economy, Tradeand Industry

Universities

Club TY Promotion
OfficeLocal governments
and related bodies
in Tokyo area

Tokyo
Metropolitan
Industrial
Technology
Research InstituteTokyo
Metropolitan
Government

Tokyo TY Financial Group

Chamber ofCommerce
and Industry

Tokyo
Metropolitan Smalland Medium
Enterprise Support
CenterFinancial
institutions

Tokyo
Foundation for
Employment
Services

Partnership
Promotion OfficeFinancial group
Subsidiaries
LeasesStrengthening of the consulting
sectorBusiness matching, business succession
M&A, overseas expansion support,
trustsRelatedfieldsRelatedfieldsRelatedfieldsSuccession support, asset management
consultation, will trusts

Customers
23

Overview of business plan and synergistic effects■ Overview of business plan
Strengthening of service as a financial partner

Overview of business plan

Value returned to stakeholders◆ Provide wide range of financial services not limited to finance when there are major changes in customers’ life stages
and life cycles, based on the business environment in the Tokyo area and the Group’s characteristics
 For SMEs
: Support in devising business plans, business matching, consultation on business succession and
M&As, etc.
 For individuals : Consultation on asset investment, will trusts, reverse mortgages, etc.
◆ Offer the above services to customers with one-stop financial services (develop Club TY)◆ Promote measures in affiliation with the Tokyo metropolitan government (Contrust, financing system, support foroverseas expansion, referrals to city measures [guidance])○ Pursue Club TY, the one-stop service for SMEs and individuals tostrengthen services as a financial partner and expand affiliatedmeasures with the Tokyo metropolitan government (investment
trust “Contrust,” Tokyo metropolitan government financing system,etc.).
○ To strengthen revenue capacity in the near term, reduce the impact
of negative interest rates by taking more risk in financing thanpreviously and move ahead with measures to improve management
efficiency in anticipation of merger.

Synergistic effects through business integration

Strengthening profitability over the near term
◆ Thoroughly strengthen revenue capacity to become a financial group that has balanced appropriate risk
management and stable revenue generation in this harsh economic environment
 Strengthen existing services and expand revenue by augmenting sales structure and regional financial functions
 Strengthen the business foundation and minimize costs by enhancing management efficiency◆ Make further improvements in management efficiency in anticipation of merger◆ Return revenue to stakeholders such as customers, shareholders, directors and employees, business partners andlocal community○ About 0.42 billion yen in synergistic effects was posted in FY2015 asa result of collaborative financing and sharing expertise in financing
in the real estate industry, as well as handling investment trusts
exclusive to Tokyo TYFG.
○ We forecast 0.7 billion yen in FY2016 due to an increase in handlingof Contrust investment trusts and financial systems in affiliation with
the Tokyo metropolitan government, in addition to previous synergy
measures. (Planned to be increased from the initial 0.5 billion yen.)■ Progress with synergies achieved through business integration
FY2015 results (year ended March 31, 2016)
Strengthening of service as a financial partner

Strengthening
profitability overthe near term

FY2016 plan (year ending March 31, 2017)

Net interest income

0.06 billion yen

0.25 billion yen

Net fees and commissions

0.0 billion yen-

Enhancing theoperational base

Net interest income

Enhancing the regional
finance function

Net interest income

0.01 billion yen-

Net fees and commissions

0.15 billion yen

0.15 billion yen

0.13 billion yen

0.2 billion yen

Net fees and commissions

Improving management efficiency

Synergy0.42 billion yen

0.07 billion yen-

Synergy plan
0.7 billion yen

0.1 billion yen-

24Strengthening of service as a financial partner
Provision of the financial platform service “Club TY”■ What is “Club TY”?

■ Results of Club TY operation for FY2015

Club TY is a financial service platform providing a wide range of one-stop financial
services that corporate customers and individuals can use when needed through anaffiliation between Tokyo Tomin Bank, Yachiyo Bank, and ShinGinko Tokyo.

Item

Reports

Contracts closed
401

171

Collaborative financing and financing
referrals

14

12Foundation support

378

156

Syndicated loans

9

3

5,746

1,227

Business matching

2,606

616

Business succession and M&A

1,110

85

Overseas, foreign exchange

405

116

1,625

410

2,832

1,152

1,205

267

140

52

1,371

772

Finance support

Mainstay operations and consulting support

Inheritance-related
Support related to function utilization
Real estate (referrals, efficient use)
MaekyuTokyo TY Lease

Holding of TOKYO TY Business Interchange 2016 (May 27, 2016)

Tomin Business Consulting Shanghai Co.,
Ltd.

16

1

● Number of exhibiting companies: Booth exhibitors: 127 companies/groups
Catalog exhibitors: 28 companies/groups● Number of visitors:
approximately 7,100

Tomin Computer System

100

60

93

77

9,072

2,627

3,923

962

Other
Total

Results for April 2015 to March 2016

(Reference) Results for October 2014 (founding) to

March 2015
At the Tokyo International Forum

25

Strengthening of service as a financial partner
Provision of the financial platform service “Club TY”■ Initiatives related to finance support■ Initiatives that are difficult for individual banks to carry out on their own
due to credit lines and regional constraints
・ Utilize mutual customer referral framework and respond with collaborative
financing and referrals(12 contracts closed, 5.7 billion yen in financing)■ Foundation financing through the foundation support function the
Shibuya Start-up Support Office・ Club TY coordinators in charge of offices respond with interviews and advice■ Initiatives related to support for function utilization■ Use of Tokyo Tomin Bank’s Maekyu
・ Refer Yachiyo Bank customers to Tokyo Tomin Bank’s Maekyu service■ Initiatives related to support for mainstay operations and consulting■ Strengthening business matching functions
・ Club TY coordinators select promising information from the matching information from bankcustomers, and choose candidate companies.
・ Beginning in January 2016, two business matching managers were assigned to the Club TY Promotion
Office.
(Number of contracts closed: 231 marketing mediation contracts and 385 business referral contracts)■ Business matching projects
・ Provide a forum for direct business negotiations with bank customers(Talks on business opportunities in the food sector and a practical lecture were held with 18
participating companies on August 26, 2015.)(Business talks were held with catalog gift companies on February 25 and March 2, 2016, with 54
companies participating.)(Business talks were held with retailers and importers/exporters of home appliances on March 15,
2016, with 14 companies participating.)
・ Talks between companies in different industries(Cross-industry business talks held with customers at nine branches in Itabashi-ku, Kita-ku andToshima-ku on March 8, 2016.)
・ Club TY Booth at Tokyo International Industry Exhibition 2015 (November 18-20, 2015)
・ Matching activities at Yachiyo Business Club gathering(Proposals made to 19 companies on February 29, 2016)■ Use of Tokyo TY Lease Co., Ltd., Tokyo Tomin Bank’s affiliate■ Business succession measures and M&As・ Yachiyo Bank previously referred lease issues to the former Tomin Lease Co.,
Ltd., but has strengthened its use as a result of the consolidation(101 contracts).

・ Over 1,100 projects handled at each bank based on branch requests and customer needs.
(77 business continuity contracts closed, 8 M&A contracts closed)■ Use of Yachiyo Entrepreneur Support Program・Tokyo Tomin Bank’s customers use the Yachiyo Entrepeneur Support Programat the Sagamihara Incubation Center, an incubation facility in Sagamihara■ Inheritance-related operations
・ Over 1,600 projects handled at each bank for wealthy individuals, landowners and corporate managers,
among others.
・ Seminars on inheritance and individual consultations held
・ Promote insurance sales through cross-selling and contracts for will trusts and inheritancearrangements, etc.

26

Strengthen service as a financial partner
Expand scope of business by setting up offices
specializing in corporate finance

Formation and expansion of task force team
■ Promote partnerships with external partners and the deployment ofknow-how and sales tools related to new initiatives to each branch■ Promote the effective use of customer needs■ Expand cooperative relationships with local governments, economic
organizations, etc.

■ Establish 5 to 10 offices specializing in corporate finance by

consolidation in important and/or open areas● Established offices specializing in corporate finance in open areasof the 23 wards of Tokyo, the bay area, and along the Odakyu Lineand Keio Line・ Yachiyo Bank’s Meguro Branch was moved to Shirokanedai, Minato-ku toincrease sales strength in the Shinagawa and Tamachi area (September 2015)
・ Tokyo Tomin Bank’s Shinbashi Corporate Sales Division was opened to
expand share of lending in the Shinbashi
and Toranomon area (November 2015)

・ Yachiyo Bank’s Yokohama-Nishiguchi
Branch was opened to expand the shareof lending in the Yokohama area
(April 2016)
・ Yachiyo Bank’s Hatchobori Branch was
moved to establish a network of Groupbranches in Nihonbashi and Ginza(June 2016)■ Important areas and open areas
Open areas in the
23 wards of Tokyo● Establishment of the Club TY Support Team・ Launched in February 2015 with a 30-person system
・ Club TY Promotion Office formed with a staff of four (January 2016)
・ Shift to a 37-person system including the Promotion Office and coordinators(April 2016)
・ Partnership Promotion Officeestablished to promote affiliations
with local governments(January 2016)
Shift to 10-person system
in April 2016

■ Relationship diagram of the Club TY
Support Team
Branches

Customers

Promote partnerships withexternal partners
Local
governments

Tokyo TYFG
Specialists

Odakyu Line, Keio Line

Bay area inanticipation of the
Olympics

Task force team aimed at
establishing a financial
platform service
Economicorganizations

Approximately
50 members planned
by FY 2020

Expand service bylistening to thevoices of customers

Universities

External partners

Incorporate this in customer
service by providing sales
tools and providing guidance
to branches

27

Strengthening profitability in the near term
Enhancing the operational baseEnhancing the regional finance function

Improving management efficiency◆ Maximize productivity by sharing sales
know-how and optimizing the sales structure
in each area

◆ Enhance customer service by sharing thestrengths of both banks◆ Minimize costs by improving management
efficiency■ Sharing the strengths of both banks
Healthcare and social welfare, real estate-related
finance, overseas expansion support, sales of financial
products, etc.

■ Streamlining and consolidation of shared operations, etc.
Improvements in the efficiency of headquarters, efficient
stationing of branches, and the streamlining andintegration of administrative expenses, etc.

● Appoint staff for short-term and medium- and long-term
assignments between two banks● Improve the efficiency of the headquarters function
・ Staff at headquarters management division (two banks)
March 2014 (592 staff) → March 2016 (489) down by
103 staff

Division of branch roles(corporate-focused, individualfocused, etc.)

Sharing financeknow-how● Commence studies aimed at optimization of the sales
structure by clarifying the division of branch roles(corporate-focused, individual-focused, etc.)
・ Start of trial run for model area holding collaborative
gatherings, reciprocal visits, and seminars forcustomers in regions in which several Tokyo Tomin
Bank and Yachiyo Bank branches are relatively close toeach other● The two banks jointly adopt investment trusts and life
insurance products and share sales expertise in joint
training and campaigns● Use Yachiyo Bank’s initiatives as a reference when Tokyo
Tomin Bank introduces loan products to strengthen
lending programs that involve risk-taking● Share strengths of both banks through joint training at
each level● Begin reciprocal dispatch of officers in sales division andcredit division (from December 2015)● Begin reciprocal assignments of branch managers toshare initiatives at branches (from February 2016)● Implementation of joint training, etc.
・ Implementation of joint training involving observationof local companies, etc. in Shanghai
・ Joint holding of seminars for business partners related
to foreign exchange trends and conditions in Asia
● Begin handling new loan products utilizing the twobanks’ know-how, such as “Fudosan no Chikara (Strengthof Real Estate) ”and “Apartment Loans” (from June 2015)● Efficient stationing of branches
・ Consolidate three Yachiyo Bank branches by using
branch-within-branch approach・ Overhaul Tokyo Tomin Bank’s branch system(Shift two branches to individual retail branches)(“Hello Access” branches become Internet branches)● Integration of the administrative centers
・ Aim for integration in FY2017● Integration of subsystems

28

Strengthen profitability through efforts at three banks

Tokyo Tomin Bank

Yachiyo Bank

ShinGinko Tokyo● Develop new business partners centered around the teamdedicated to developing new corporate customers(Teams established at the Shinbashi Corporate Sales Division,
Yokohama, Ikebukuro, Higashi Shinjuku, Shibuya, and Kinshichobranches)・ Establish Shinbashi Corporate Sales Division in November
2015
・ FY2015 results for new corporate customers(1,132 customers; execution amount of 89.5 billion yen)

● Strengthen reclamation of offices by moving the Meguro
Branch and opening the Yokohama-Nishiguchi Branch, as well
as opening Corporate Business Offices(Sites for Corporate Business Offices: Head Office Business
Division, Yoyogi, Ikebukuro, Shakujii, Fuchu, Kanda, Kawasaki,
Sagamihara)
・ Target companies with over 300-500 million yen in annual
turnover・ Number of new corporate clients acquired in FY2015(2,398 companies, of which 481 at the Corporate Business
Office)● Corporate Consultation Headquarters
・ Consultations on management overall, not just financing,with advance appointments(Over 100 a month)● Strengthen sales based on proposals meeting growing needs forbusiness succession, M&A, and inheritance utilizing theBusiness Development Division● Strengthen support for customers including medical
corporations and social welfare service providers centeredaround the Medical and Welfare Division
Affiliations with Tokyo metropolitan government has led toincrease in information, while business integration has brought
in more real estate information; capitalize on this informationand maximize use of the know-how, brand name recognitionand networks built up thus far to become a bank that attracts
facility projects in the medical sector in the Tokyo metropolitan
area<Medical and Welfare Division’s loan >(¥ billions)39.5
9/3-10/3

48.4
11/3-12/3

64.2

70.3

13/3-14/3

15/3-16/3● Overseas business support for customers, primarily in Asia
・ Utilize Tomin Business Consulting Shanghai Co., Ltd., the only
consulting affiliate of a regional bank・ Form business affiliations with local banks in Asia, such as
China, Thailand, India, and Vietnam
・ Dispatch human resources to local branches of Kasikorn Bankin Thailand● Foundation support
・ Support through the Shibuya Start-up Support Office・ Partnerships with incubation facilities
Number of foundation support projects (FY2015)
Foundation finance

116

Foundation subsidy application support

12

Support through the Shibuya Start-up Support Office86

Incubation facilities partnerships

61

Information provision (seminars, etc.)

63

Total

338

● Partnerships with local governments, etc.
・ Entered “Memorandum Concerning Business Partnership andCooperation”(May 2012 Toshima-ku, June 2012 Machida-shi, March 2014
Atsugi Chamber of Commerce and Industry)・ Partnership with the Institute of Industrial PromotionKawasaki and the Sagamihara Industrial Promotion
Foundation.

<Examples of topics of consultations on management overall>・ Revitalization, M&A
・ Business matching・ Entry to overseas markets
・ Measures supporting SMEs by the Tokyo metropolitan
government (information on subsidies, etc.)

Collaborate with SME groups, Tokyo metropolitan
government-related groups and organizations
supporting management innovation, among others, toprovide optimal solutions● “Contrust,” a public construction cost credit trust・ Using the trust license held by ShinGinko Tokyo, this productenables contractors taking on public works projects to raisemoney at low cost・ This trust product is backed by the credit strength of theentity ordering the public works project, and thus response
can be rapid.

● Promotion of real estate-related finance・ Actively support local customers that can be supported as themain bank or as a secondary bank・ Strengthening consulting by taking maximum advantage ofhigh levels of know-how related to real estate29

Affiliations with Tokyo metropolitan government and related organizations■ Affiliations with Tokyo metropolitan government and related organizations

Management support overall“Agreement on a Comprehensive Affiliation for Industrial Development in Tokyo ” signed
on September 25, 2015

Memorandum on Business Affiliation and Collaboration signed on March 23, 2016
○ Three banks begin handling the Tokyo Metropolitan Small and Medium Enterprise Support
Center’s “Jigyou no Chikara (Strength of Business)”product for companies eligible for support
through the Project Feasibility Evaluation Program and the “Chizai no Chikara (Strength ofIntellectual Property)” product for companies eligible for support through the Program
Supporting the Introduction of Intellectual Property Strategies○ Work on forming new affiliations and collaborative projects in the fields of business succession,business foundation, and overseas expansion, among others○ Three banks began handling Tokyo metropolitan government’s New Guaranteed Loan Program (withORIX Corporation guarantee)○ Three banks began handling Tokyo metropolitan government’s Asset-based Lending (ABL) Program○ Tokyo Tomin Bank and Yachiyo Bank began offering ShinGinko Tokyo’s “Contrust,” a publicconstruction cost credit trust, as a customer referral operation○ Three banks introduce initiative introducing measures of Tokyo metropolitan governmentand related organizations to customers

Views and desires of SMEs

Views and desires of SMEs

Tokyo Tomin Bank

Yachiyo Bank

ShinGinko Tokyo

Views and desires of SMEs

○ Support with human resource matching for individual companies
Began to handle Staffing Support Service and Corporate Information Disclosure Service○ Joint holding of staffing seminars for SMEs
○ Plans to co-sponsor Tokyo JOB Festival, a joint corporate briefing

Views and desires of SMEs

Agreement on Hiring and Employment Support signed on April 18, 2016

Information on support measuresoffered by Tokyo metropolitan
government and other organizations

Hiring and staffing support

Views and desires of SMEs

Technical support

Agreement on Business Affiliation signed on May 27, 2016
○ Joint holding of seminars for SMEs
○ Address technical issues faced by corporate customers by affiliating with Tokyo Metropolitan
Industrial Technology Research Institute○ Proactive support for corporate customers’ overseas expansion held jointly

SME customers
30Business tie-up with Sumitomo Mitsui Trust Bank
Business tie-up with Sumitomo Mitsui Trust Bank
○ Sumitomo Mitsui Trust Bank formed a business affiliation with Yachiyo Bank in March 2006
○ Tokyo TYFG and Tokyo Tomin Bank will also form business tie-ups with Sumitomo Mitsui Trust Bank, which has a different
customer base and business base than these two banks○ Aim to expand fee business and customer base by offering sophisticated financial services addressing diverse customer needs

Tokyo Tomin Bank

Expansion of fee businessthrough business tie-up

Yachiyo Bank

Reciprocal cooperation through referrals and sales support① Products and services for corporate customers▽ Business matching operations▽ Mortgage-backed loan operations▽ Credit securitization operations▽ Finance operations (syndicate loans, real estate non-recourse loans,project finance, PFI, etc.)▽ Corporate revitalization business▽ M&A and business succession consulting▽ Overseas office business▽ Lease operations② Products and services for individuals▽ Will trusts and inheritance arrangements▽ Inheritance-related business▽ Offering products contributing to asset management(investment trusts, deposits, trust products, etc.)▽ Loan operations such as mortgage-backed loans▽ Reciprocal removal of ATM fees

Maximize each other’s strengths and provide sophisticated financial services
that meet diverse needs of customers in Tokyo metropolitan area

Strengthening profitability

Further expansion ofbusiness foundation

31

Tokyo TYFG after shifting to one-bank system

32

Direction of Tokyo TYFG’s growth strategy○ In addition to the current two banks, ShinGinko Tokyo will also be consolidated. The three banks’ management resources (people,

physical assets, money, information) will be utilized as much as possible and competitiveness reinforced.
○ In anticipation of consolidation through merger of three banks, the banks will streamline and establish a low-cost, highly efficientsystem.
Management consolidation of
three banks

Tokyo Tomin BankManagement
consolidation of two banks

Agreement on a Comprehensive
Affiliation for Industrial Development
signed with Tokyo metropolitan
government

Yachiyo Bank

ShinGinko Tokyo> Non-personnel expenses
ratio> Broader geographicalrange of customers> Low loan-deposit ratio> High personnel expenses
ratio> Financing base(interest rate forfinancing)> Branch network

Shift to lowcost, highly
efficient system> Strong network with theTokyo metropolitan
government> Trust functions such as“Contrust “> Diverse staff andproprietary credit
screening capacity

Support for
medium-sizedcompanies and
SMEs

Issues> Loans to real estate
sector knowledge> Community-oriented
marketing> Network with local
governments such as
Sagamihara-shi and
Machida -shi

Close ties toTokyo area

Strengths> Knowledge on loans for
medical and welfare
sector> Management support on
issues such as M&A andbusiness revitalization> Affiliation with Tokyo
Chamber of Commerceand Industry

Start of new stage
after three-way
merger to one bank

> Largest network of branches in Tokyo
area, with 164 branches> Community-oriented support forcustomers in Tokyo area

> Network of group’s customers> Knowledge of loans, particularly businesscharacteristics specific to industry (medical,
real estate, etc.)> Thorough business support addressing theconcerns of midsize companies and SMEs
(Overseas expansion, M&A, etc.)> Room for drastic streamlining of
personnel and branches> Room for streamlining under onebank system, such as system
consolidation

33

Tokyo TYFG’s vision○ Tokyo TYFG aims to expand a problem-solving business that is not simply based on providing loans and selling financial

products to win the support of more customers as their main bank, thus becoming the “all-around supporter” of SMEs and a“daily financial advisor” for individuals.
SMEs in Tokyo area
Ownersof SMEs

Key word“All-around supporter” of SMEs providing value that goes beyond providing loans
Value provided

Consulting

Financial support not solely dependent on past financial statements> Financing based on evaluation of business potential andfuture potential (intellectual property management support)> Asset financing (Contrust)> Project finance , etc.
> Real estate trusts

Organization, branches

Headquarter

Marketing

Machida-shi

Sagamihara-shi

M&A

･･･

> Support in addressing staffing shortfalls throughplacement and referrals (affiliation with Tokyo
Foundation for Employment Services and others)> Support with accounting operations, including
providing systems , etc.

About 1.6 million customers

Strengthen branch network

・・・

External experts

Customer networks

Local governments
Tokyo

Comprehensive support of SMEs and their owners, families, and employees> Support for business succession,
M&A, and overseas expansion> Matching service bringing
together about 1.6 million
customers

Expand consulting functions and reinforce expertise
Business
succession(Planning, administration)

SeniorDaily financial advisors for individuals

Financial services

Shift in assignment of headquarter staff to sales

Individuals
Employees +Ownerfamilies

LawyerTax accountant,accountant

Fund

Consultant･･･

Club TY

Move from banking into comprehensive financial service contributing to development of local society34

Target for net core business income○ Although negative interest rates are putting downward pressure on revenue, we aim to achieve 20 billion yen in net corebusiness income in FY2020 or as soon as possible thereafter by streamlining measures through the one-bank approach andmeasures to expand revenue○ Aim to expand net core business income further by thoroughly implementing streamlining measures and measures to expand
revenue to realize vision
2[Net core business income]1
About
15.0 billion yen

Over
2.0 billion yen

About
8.0 billion yen
About
3.0 billion yen

20.0 billion yen

FY2015

Impact of negativeinterest rates

Implementation of
streamlining
measures

Implementation of
measures to expand
revenue

Target for net corebusiness income(FY2020 or after)35

Direction of measures to achieve goal
○ Significantly reduce costs by thoroughly revising organization and operations and boldly moving forward with consolidation and integration○ Expand revenue by maximizing use of strengths of ShinGinko Tokyo and affiliations with Tokyo metropolitan government and providing value uniqueto Tokyo area and three banks

1
Streamlining measures

2

Greater efficiency at
headquarters Streamline headquarter staff by consolidating headquarter functions at three banks
 Streamline number of officers

Enhance efficiency of
existing branches Redevelop lightweight branch format for 30-40 branches, tailored to conditions in region

Systemconsolidation

Cut costs by about

8.0 billion yen
 Consolidate account systems and make significant cuts in running costs
 Consolidate overlapping sub-systems according to account systems

Enhance administrative  Consolidate administrative centers in urban area into one office (FY2017)and other efficiencies  Consolidate administrative sub-contractors such as mailing services

by exhaustively
pursuing
rationalization

Measures to expand revenue

 Expand trust function, ShinGinko Tokyo’s strength, to all business regions
 Utilize Contrust and new guaranteed loan program through affiliation with Tokyo metropolitan
Cross-sell three banks’
government
strengths
 Share Tokyo Tomin Bank’s loan knowledge in medical sector and Yachiyo Bank’s loan knowledge in realestate sector

Problem-solving
support at thecustomer’s individuallevel (becoming theirmain bank) Expand financing opportunities through new credit scheme(Business potential evaluation financing through intellectual property management support, etc.)
 Expand presence by offering effective solutions to resolve management issues(Provide matching services, support staffing shortfalls through placement and referral services, etc.)
 Increase in advisory fees by strengthening consulting functions(Business succession, M&A, overseas expansion support, etc.)

 Provide new branch networks based on customers’ expectations for banks and changes in lifestyles
and the business environment
Move into new branch(Establish branches with distinct functions, shift to branch-based management to management by
networks
area, etc.)
 Shift bank staff to new offices and functions, including branches with distinct functions

Expand revenue by
more than
2.0 billion yen
through new measuresunique to Tokyo area
and the three banks

36

Direction of streamlining■ Image before merger (current)Tokyo Tomin Bank

Yachiyo Bank

■ Image after merger
ShinGinko TokyoManagement
base

Headquarters

Greater efficiency at
headquarters• Streamline
headquarters officers

Officers• Reassignment of bankstaff
Shift bank staff to sales functions

Branches

Enhance efficiency of
existing branches• Rebuild 30-40 branches• Provide new branch network
based on customer needs

Optimize branch
network
Branches with distinct functions

Systems, administration

System consolidation• Consolidation of accounts and subsystems• Consolidation of administration subcontracting (mailing services, etc.)

Enhance administrative
efficiencies• Sharing and consolidation of administrative
centers(Consolidate administrative centers in urban
areas into one office in FY2017)37

CSR initiatives

38

CSR initiatives
Stance of the Tokyo TY Financial Group towards CSR
The Tokyo TY Financial Group that aims to be the No. 1 urban regional bank views the implementation of CSR management and contributing to the formation of sustainable local communities to bean essential management issue. Based on the management policy of “the development of local communities through the provision of integrated services as a financial group for SMEs andindividuals in the Tokyo metropolitan area,” we have established the three action guidelines of “contributing to the regional economy,” “contributing to local communities,” and “initiatives towards
environmental issues,” and we will actively engage in CSR activities.
■ Contributing to the regional economy■ Contributing to local communities■ Initiatives towards environmental issues

The Tokyo TY Financial Group supports people in the local
community through financial services and implements
various measures by leveraging its consulting function as itsupports the revitalization of the regional economy so thatpeople in local communities can realize their dreams.

The Tokyo TY Financial Group will work to improve
convenience and safety through the provision of high-quality
service while contributing to local communities throughvarious community-based initiatives in order to carry theaspirations of people in the community into the next
generation and develop together.

The Tokyo TY Financial Group will implement various
initiatives to protect the environment through local
environmental conservation activities and financial services
in order to leave behind an environment that allows for thesafe and secure living of everyone in the community
including the children that will lead the next generation.

◆◆ Acquisition of certification as◆◆ Participation in tree-planting event and local clean-◆◆◆ Holding of TOKYO TY Business Interchange 2016
The TOKYO TY Business Interchange 2016 was jointly held by
the three banks in May 2016. It enabled extensive matchingamong the 7,100 visitors and 155 participating companies.

◆◆ Business succession, management consultation,etc.
◆◆ Facilitating financing and supporting therevitalization of the local community

supporter of dementia

up activities

In response to the advance of population
aging, Tokyo Tomin Bank and Yachiyo Bank
have implemented measures for theacquisition of certification as supporter ofdementia in order to contribute to thebuilding of local communities.
◆◆ Cooperation with blood donation activities
Tokyo Tomin Bank and Yachiyo Bank’s main branches
cooperated with the Japanese Red Cross’s Tokyo
Metropolitan Blood Center.

We participated in environmental conservation through treeplanting activities on the site planned for the Umi-no-Mori(Sea Forest) Park built in October 2015 by the Tokyo
metropolitan government and also carried out the Tamagawa
clean-up in May 2015.

◆ Initiatives aimed at juvenile and youth development incooperation with FC Tokyo, a J. League team◆ Support for the Japan Football Association’s Dream
Class program◆◆ Cooperation with the “Creation of Low-Pollen

etc.

etc.

Formation of sustainable local communities

Forests Fundraising” program
etc.

39

Thank you for attending this presentation today.
■ Please direct any comments or questions about these briefing
materials or other IR topics to the IR officer below.
Tokyo TY Financial Group, Inc.
Corporate Planning Division
The Tokyo Tomin Bank, Limited
Corporate Planning Division, Public and Investor Relations OfficeTEL+81-3-3505-2155
E-mail tomin.miyazaki.s@nifty.com
tomin.arakawa@nifty.com
The Yachiyo Bank, Limited
Corporate Planning Division, Investor Relations Section
TEL+81-3-3352-2295
E-mail IR@yachiyobank.co.jp

This document contains forward-looking statementson the Group’s results. These statements are notintended to guarantee future results, as they are
subject to risks and contain uncertainties. Pleasekeep in mind that future results may differ due tofactors including changes in the businessenvironment.

ShinGinko Tokyo, Limited
Corporate Planning DivisionTEL
03-6302-3958
E-mail nobuhito.fukuda@sgt.jp40