Financial Results
for the First Half of the Fiscal Year Ending March 31, 2019
- Supplementary Information -[Contents]
I. Overview of Financial Results for the First Half of the Fiscal Year Ending March 31, 2019

1. Status of Profit/Loss･･･････

1-2

2. Business Income･･･････

3

3. Margin･･･････

3

4. ROE

･･･････

4

5. OHR･･･････

4

6. Gain/Loss on Securities･･･････

5

7. Capital Ratio (Domestic Standards)･･･････

6

1. Risk-monitored Loans･･･････

7

2. Loans Based on the Financial Reconstruction Act･･･････

8

3. Coverage Status of Loans Based on the Financial Reconstruction Act･･･････

8

4. Status of Reserve for Possible Loan Losses･･･････

8

5. Status of Problem Assets Subject to Disclosure･･･････

9

6. Loan Breakdown by Industrial Sector･･･････

10

7. Deposits and Loans･･･････

11-12

1. Valuation Standards･･･････

13

2. Gain/Loss on Valuation･･･････

13

II. Status of Loans

III. Valuation Gain/Loss on Securities<Method of presentation of the figures>
Effective May 1, 2018, the Group concluded a merger of its consolidated subsidiaries of the former Tokyo Tomin Bank, theformer Yachiyo Bank and the former ShinGinko Tokyo, with the former Yachiyo Bank as the surviving company and the former
Tokyo Tomin Bank and the former ShinGinko Tokyo as the dissolving companies, and changed its business name to Kiraboshi
Bank.
Accordingly, for accounting purposes, April 2018 figures of the two dissolved companies of the former Tokyo Tomin Bank andthe former ShinGinko Tokyo are not included in the figures of Kiraboshi Bank for the first half ended September 30, 2018.
In this supplementary information, from the point of view of appropriate period-over-period comparison of each item, thefollowing rules are applied in the calculation of Kiraboshi Bank figures that are presented herein.
- Figures for the first half ended September 30, 2017, figures as of September 30, 2017 and figures as of March 31, 2018(excluding capital ratio)
Sum of the figures of the former Tokyo Tomin Bank, the former Yachiyo Bank and the former ShinGinko Tokyo.
- Figures as of March 31, 2018 (capital ratio)
Respective figures of the former Tokyo Tomin Bank, the former Yachiyo Bank and the former ShinGinko Tokyo individually- Figures as of September 30, 2018
Kiraboshi Bank figures- Figures for the first half ended September 30, 2018 (excluding profit/loss status)
Sum of Kiraboshi Bank figures for May 2018 onward and figures of the former Tokyo Tomin Bank, the former Yachiyo Bank andthe former ShinGinko Tokyo for the month of April 2018.
- Figures for the first half ended September 30, 2018 (profit/loss status)(A) Reporting basis
Sum of Kiraboshi Bank figures for May 2018 onward and the former Yachiyo Bank figures for the month of April 2018.
(B) Combined basis
Sum of Kiraboshi Bank figures for May 2018 onward and figures of the former Tokyo Tomin Bank, the former Yachiyo Bank andthe former ShinGinko Tokyo for the month of April 2018.

I. Overview of Financial Results for the First Half of the Fiscal Year Ending March 31, 2019
1. Status of Profit/Loss(1) Tokyo Kiraboshi Financial Group, Inc. [Consolidated]
Consolidated ordinary income for the first half of the fiscal year ending March 31, 2019 decreased by 2,805 million
yen year-on-year to 39,459 million yen, consolidated ordinary profit decreased by 3,034 million yen year-on-year to2,685 million yen. Due to tax effect accounting, profit attributable to owners of parent for the six months ended
September 30, 2018 decreased by 1,052 million yen year-on-year to 3,760 million yen.
(Millions of yen)First half ended
Sept. 30, 2018 (A)First half ended
Sept. 30, 2017 (B)Difference(A) – (B)

Ordinary income

1

39,459(2,805)42,264Gross business profit

235,249(657)

35,906(Excluding gains/losses on bonds (five accounts total))

335,290(319)

35,609Net interest income

428,225963

27,262Trust fees

5

17

(10)

27

Net fees and commissions

6

6,801

(441)

7,242

Other business income (loss)

7204(1,170)1,374

Expenses (excluding non-recurring losses)

8

28,251(2,381)

30,632Credit-related costs

9

1,571

1,876

(305)

Write-off of loans

10

9

(3)

12

Transfer to reserve for individual possible loan losses

11

954

(224)

1,178

Other credit-related costs

12

607

2,104

(1,497)

Gains (losses) on stocks and other securities

13

167

(1,777)

1,944

Profit on investments based on the equity method

14

60

(24)

84

Others15(2,969)(1,080)(1,889)Ordinary profit

16

2,685

(3,034)

5,719

Extraordinary profit (loss)

17

(36)

(31)

(5)

Income before income taxes

18

2,648

(3,066)

5,714

Total income taxes

19(1,125)(2,011)

886

Income taxes – current

20

349

(438)

787

Income taxes – deferred

21(1,475)(1,573)

98

Profit (loss)

22

3,774

(1,054)

4,828

Profit (loss) attributable to non-controlling interests

23

13

(2)

15

Profit (loss) attributable to owners of parent

24

3,760

(1,052)

4,812(Number of consolidated subsidiaries and equity-method affiliates)

Initial forecast ofoperating performancefor the first half of the
fiscal year ending March
31, 2019

Forecast
announced on
May 15, 2018

900

2,000

(Number of companies)

Consolidated subsidiaries

25

12

–

12

Equity-method affiliates

26

2

–

2

(Note)
From the first half of the fiscal year ending March 31, 2019, the former Tokyo Tomin Bank and the former ShinGinko
Tokyo are excluded from the scope of consolidation. This is because, effective May 1, 2018, the two banks ceased toexist as a result of an absorption-type merger where the former Yachiyo Bank is the surviving company.
1(2) Kiraboshi Bank, Limited
Although good progress was made in cost reductions from the synergistic effects of the merger, net core business income (on acombined basis) decreased by 714 million yen year-on-year to 7,289 million yen, due largely to a decrease in net interest income
including interest on loans and discounts.
Credit-related costs increased by 1,778 million yen year-on-year to 1,566 million yen, attributable primarily to 739 million yen
provided in reserve for individual possible loan losses in connection with misconduct (embezzlement of cash) by a former bank
employee.
As a result, ordinary profit decreased by 5,797 million yen year-on-year to 2,869 million yen, profit for the six months ended
September 30, 2018 decreased by 3,754 million yen year on year to 3,938 million yen.
[Non-consolidated](Millions of yen)First half ended
Sept. 30, 2018(A) (reporting
basis)First half ended
Sept. 30. 2018(B) (combined
basis)

36,131
32,11032,13530,55030,571
25,716
15
5,011
(193)
1,559
1,564
1,182
104
272
25,092
12,494
10,531
2,065
7,017
7,043
341
6,676
(25)
(3,836)
1,269
2
915
51
(18)
315
3
–
43
278
313
35
0
(2,887)
2,840
(21)
2,818
(1,099)60(1,160)3,918

39,481
34,961
34,98233,26633,28328,096
17
5,341
(189)
1,694
1,699
1,246
115
332
27,693
13,686
11,645
2,361
7,267
7,289
271
6,995
(21)
(4,125)
1,294
2
932
51
(11)
316
3
–
43
277
314
37
0
(3,151)
2,869
(36)
2,832
(1,105)91(1,197)
3,938(6,015)(3,286)(2,861)(3,298)(2,961)(1,894)
(10)
(428)
(966)
12
101
244
9
(242)
(2,146)
(758)
(877)
(512)
(1,141)(714)
771(1,913)(425)(3,883)
(27)
1
(228)
26
27
145
3
(1,033)(5)(1,752)(1,734)19
0(1,119)(5,797)(31)(5,828)(2,073)(414)(1,659)(3,754)45,49638,247
37,84336,56436,24429,990
27
5,769
777
1,682
1,598
1,002
106
574
29,83914,444
12,522
2,873
8,408
8,003
(500)
8,908
404
(242)
1,321
1
1,160
25
(38)
171
0
1,033
48
2,029
2,048
18
–
(2,032)
8,666
(5)
8,660
968
505
462
7,692

46

1,610

1,566

1,778

(212)

47
48
49

37,1183,441
4,286

40,476
3,469
4,305(3,696)(3,571)(1,473)

1
2(Excluding gains/losses on bonds (five accounts total)) (Gross core business profit)
3
Gross domestic business profit
4(Excluding gains/losses on bonds (five accounts total))
5
Net interest income
6
Trust fees
7
Net fees and commissions
8
Other business income (loss)
9
Gross international business profit
10(Excluding gains/losses on bonds (five accounts total))
11
Net interest income
12
Net fees and commissions
13
Other business income (loss)
14
Expenses (excluding non-recurring losses)
15
Personnel expenses
16
Non-personnel expenses
17
Taxes
18
Net business income (before transfer to reserve for general(Net business income)19
possible loan losses)(Excluding gains/losses on bonds (five accounts total)) (Core business income)20
Transfer to reserve for general possible loan losses (1)21
Net business income
22(Gains/losses on bonds (five accounts total))
23
Non-recurring profit (loss)
24
Loss from write-off of non-performing loans(2)25
Write-off of loans
26
Transfer to reserve for individual possible loan losses
27
Loss on disposal of receivables
28
Provision for contingent loss
29
Credit guarantee association responsibility-sharing system charge
30
Other losses from write-off of non-performing loans
31
Reversal of allowance for loan losses(3)
32
Recoveries of written-off claims
33
Gains (losses) on stocks and other securities
34
Gain on sale of stocks and other securities
35
Loss on sale of stocks and other securities
36
Loss on devaluation of stocks and other securities
37
Other non-recurring profit (loss)
38
Ordinary profit
39
Extraordinary profit (loss)
40
Income before income taxes
41
Total income taxes
42
Income taxes – current
43
Income taxes – deferred
44
Net income
45
Ordinary income

Gross business profit

Credit-related costs(1)＋(2)－(3)Ordinary profit
Profit attributable to owners of parent

First half ended
Sept. 30, 2018
plan

1,300

2,300

(Millions of yen)[Consolidated]
Ordinary income

First half ended
Sept. 30. 2017(combined basis)

Difference(A) – (B)244,172
7,040
5,778

2,700

2. Business Income
Kiraboshi Bank, Limited [Non-consolidated] First half ended Sept. 30. 2018 (combined basis)(Millions of yen)First half ended
September 30, 2018
(A)

First half ended
September 30, 2017(B)

Difference(A) – (B)Net business income(before transfer to reserve for general possible loan losses)

7,267(1,141)

8,408

Per employee (thousands of yen)

2,341

(213)

2,554

6,995

(1,913)

8,908

2,253

(453)

2,706

7,289

(714)

8,003

2,348

(83)

2,431

Net business income
Per employee (thousands of yen)
Net core business income
Per employee (thousands of yen)

(Note) For employees above, the average number of employees during the period under review, including executive officers but excluding
temporary employees, fixed-term employees, and secondees, has been used.

3. Margin
Kiraboshi Bank, Limited [Non-consolidated] First half ended Sept. 30. 2018 (combined basis)(%)
First half ended
September 30, 2018
(A)

First half ended
September 30, 2017(B)

Difference(A) – (B)Yields on interest-earning assets

(C)

1.18

(0.04)

1.22

Loans and bills discounted

(c)

1.18

(0.04)

1.22

1.47(0.10)

1.57

(D)

1.11

(0.08)

1.19

(d)

0.02

(0.01)

0.03

0.35

0.08

0.27

Securities
Cost of funding
Deposits, etc.
External liabilities
Difference of interest rates between deposits and loans(c)-(d)1.16(0.03)

1.19

Net interest margin(C)-(D)

0.07

0.04

0.03

<Domestic Operations>(%)
First half ended
September 30, 2018
(A)

First half ended
September 30, 2017(B)

Difference(A) – (B)Yields on interest-earning assets

(C)

1.12

(0.06)

1.18

Loans and bills discounted

(c)

1.18

(0.04)

1.22

1.31(0.21)

1.52

(D)

1.07

(0.09)

1.16

(d)

0.02

(0.01)

0.03

0.03(0.01)

0.04

Securities
Cost of funding
Deposits, etc.
External liabilities
Difference of interest rates between deposits and loans(c)-(d)1.16(0.03)

1.19

Net interest margin(C)-(D)

0.05

0.03

0.02

3

4. ROE
Tokyo Kiraboshi Financial Group, Inc. [Consolidated](%)
First half ended
September 30, 2018
(A)

2.56

On basis of profit attributable to owners of parent(Note)ROE [Consolidated] =Difference(A) – (B)First half ended
September 30, 2017(B)

(0.79)

3.35

Profit attributable to owners of parent × 365 ÷ 183(Net assets at the beginning of the period + net assets at the end of the period) ÷ 2

x 100

Kiraboshi Bank, Limited [Non-consolidated] First half ended Sept. 30. 2018 (combined basis)(%)
First half ended
September 30, 2018
(A)

Difference(A) – (B)First half ended
September 30, 2017(B)

On a basis of net business income (before transfer to reserve for general possible loan
losses)5.06(0.89)

5.95

On a basis of net business income

4.87(1.43)

6.30

On a basis of net core business income

5.08(0.58)

5.66

On basis of profit attributable to owners of parent

2.74(2.70)

5.44(Note) ROE [Non-consolidated] =Net income × 365 ÷ 183(Net assets at the beginning of the period + net assets at the end of the period) ÷ 2

x 100* In the above calculation formula, the net assets figure at the beginning of the year is the sum of net assetsof the former Tokyo Tomin Bank, the former Yachiyo Bank and the former ShinGinko Tokyo as of April 1,
2018.

Kiraboshi Bank, Limited [Consolidated] First half ended Sept. 30. 2018 (combined basis)(%)
First half ended
September 30, 2018
(A)

Difference(A) – (B)First half ended
September 30,
2017(B)On a basis of net business income (before transfer to reserve for general possible loan
losses)

5.34

0.77

4.57

On a basis of net business income

5.17

0.22

4.95

On a basis of net core business income

5.35

1.06

4.29

On basis of profit attributable to owners of parent

2.93(1.10)

4.03(Note)ROE [Consolidated] =Profit attributable to owners of parent × 365 ÷ 183(Net assets at the beginning of the period + net assets at the end of the period) ÷ 2

x 100* In the above calculation formula, the net assets figure at the beginning of the year is the sum of net assetsof the former Tokyo Tomin Bank, the former Yachiyo Bank and the former ShinGinko Tokyo as of April 1,
2018.

5. OHR
Kiraboshi Bank, Limited [Non-consolidated] First half ended Sept. 30. 2018 (combined basis)(%)
First half ended
September 30, 2018
(A)

Difference(A) – (B)First half ended
September 30, 2017(B)

On a basis of gross core business profit

79.16

0.31

78.85

On a basis of gross business profit

79.21

1.20

78.01

(Note)OHR=

Expenses
Gross business profit

×

100

4

6. Gain/Loss on Securities
Kiraboshi Bank, Limited [Non-consolidated] First half ended Sept. 30. 2018 (combined basis)(Millions of yen)First half ended
September 30, 2018
(A)

First half ended
September 30, 2017(B)

Difference(A) – (B)

(21)

(425)

404

Gain on sale of bonds

93

(644)

737

Gain on redemption of bonds

0

0

–

115

(217)

332

Loss on redemption of bonds

–

–

–

Amortization on bonds

–

–

–

277

(1,752)

2,029

Gain on sale of stock and other securities

314(1,734)

2,048

Loss on sale of stock and other securities

37

19

18

Amortization of stock and other securities

0

0

–

Gains (losses) on bonds

Loss on sale of bonds

Gain (loss) on securities from application of mark-to-market accounting(securities)57. Capital Ratio (Domestic Standards)(1) Tokyo Kiraboshi Financial Group, Inc. [Consolidated](Millions of yen, %)September 30,
2018 (A)(1) Capital ratio (%)(4)/(5)(2) Basic items in core capital(3) Adjustments in core capital

March 31, 2018(B)

Difference(A) – (B)

9.18

0.13

9.05

298,188

4,265

293,923

13,318768

12,550(2)–(3)284,8703,497

281,373

Directly issued qualifying common stock or mandatory convertible preferred stockplus related capital surplus and retained earnings(4) Capital

285,378

2,756

282,622

Total provisions included in basic items in core capital

5,487

293

5,194

Eligible capital instruments subject to transitional arrangements included in basic
items in core capital

5,000

–

5,000

3,102,425(5,344)

3,107,769

124,097(213)

124,310(5) Risk-weighted assets(6) Total necessary capital(5) × 4%(2) Kiraboshi Bank, Limited [Non-consolidated](Millions of yen, %)September 30,
2018 (A)March 31, 2018 (B)Former Tokyo TominBank

Former Yachiyo Bank

8.85

6.58

8.54

20.34

(2) Basic items in core capital

286,944

109,394

110,988

63,342(3) Adjustments in core capital

10,994

11,337370

148(1) Capital ratio (%)(4) Capital(4)/(5)Former ShinGinko
Tokyo(2)–(3)275,949

98,057

110,617

63,193

Directly issued qualifying common stock or mandatory convertible preferred stockplus related capital surplus and retained earnings

276,131102,635

108,181

62,436

Total provisions included in basic items in core capital

5,152

1,824

2,080

906

Eligible capital instruments subject to transitional arrangements included in basic
items in core capital

5,000

5,000

–

–

3,115,660

1,488,813

1,294,339

310,631

124,626

59,552

51,773

12,425(5) Risk-weighted assets(6) Total necessary capital(5) × 4%(Note)
Capital ratio is calculated based on Financial Service Agency Notifications No.19 and 20 of 2006.
The standardized approach is applied for calculating credit risks and assets, while the fundamental approach is applied for calculating
the amount equivalent to operational risk.

(3) Kiraboshi Bank, Limited [Consolidated](Millions of yen, %)September 30,
2018 (A)(1) Capital ratio (%)(4)/(5)(2) Basic items in core capital(3) Adjustments in core capital

March 31, 2018 (B)Former Tokyo TominBank

Former Yachiyo Bank

9.02

6.75

8.69

294,540

113,193

113,082

13,144

12,253378(2)–(3)281,396

100,940

112,704

Directly issued qualifying common stock or mandatory convertible preferred stockplus related capital surplus and retained earnings(4) Capital

281,141

105,231110,200

Total provisions included in basic items in core capital

5,487

1,986

2,301

Eligible capital instruments subject to transitional arrangements included in basic
items in core capital

5,000

5,000

–

3,118,844

1,494,006

1,295,574

124,753

59,76051,822(5) Risk-weighted assets(6) Total necessary capital(5) × 4%(Note) The former ShinGinko Tokyo, Limited, has no consolidated subsidiaries, so the net assets to total assets ratio has not been calculated.

6

II. Status of Loans
1. Risk-monitored Loans
Kiraboshi Bank, Limited [Non-consolidated][Risk-monitored loans amount](Millions of yen)

September
30, 2018 (A)Difference(A) – (B)

March 31,2018 (B)

Difference(A) – (C)September
30, 2017 (C)Bankrupt loans

5,970

(717)

(1,896)

6,687

7,866

Non-accrual loans

74,551(764)(3,801)75,31578,352

Past-due loans (3 months or more)
Restructured loans
Risk-monitored loan amount
Loan balances

335

76

109

259

226

4,420

1,879

1,487

2,541

2,933

85,278474(4,101)84,80489,3793,653,817(22,414)

17,436

3,676,231

3,636,381[Loan balance ratio](%)

September
30, 2018 (A)Difference(A) – (B)

Difference(A) – (C)March 31,2018 (B)

September
30, 2017 (C)0.21

Bankrupt loans

0.16(0.02)(0.05)

0.18

Non-accrual loans

2.04

–

(0.11)

2.04

2.15

Past-due loans (3 months or more)

0.00

–

–

0.00

0.00

Restructured loans

0.12

0.06

0.04

0.06

0.08

2.33

0.03

(0.12)

2.30

2.45

Loan balance ratio(Reference) Risk-monitored Loans after Partial Direct Write-Offs[Risk-monitored loan amount](Millions of yen)

September
30, 2018 (A)Difference(A) – (B)

March 31,2018 (B)

Difference(A) – (C)September
30, 2017 (C)Bankrupt loans

1,495

(293)

(64)

1,788

1,559

Non-accrual loans

69,637(1,231)(4,300)70,86873,937

Past-due loans (3 months or more)
Restructured loans
Risk-monitored loan amount
Loan balances

335

76

109

259

226

4,420

1,879

1,487

2,541

2,933

75,888430(2,769)75,45878,6573,644,427(22,457)

18,7683,666,884

3,625,659[Loan balance ratio](%)

September
30, 2018 (A)Difference(A) – (B)

March 31,2018 (B)

Difference(A) – (C)September
30, 2017 (C)Bankrupt loans

0.04

–

–

0.04

0.04

Non-accrual loans

1.91(0.02)(0.12)

1.93

2.03

Past-due loans (3 months or more)

0.00

–

–

0.00

0.00

Restructured loans

0.12

0.06

0.04

0.06

0.08

2.08

0.03

(0.08)

2.05

2.16

Loan balance ratio

7

2. Loans Based on the Financial Reconstruction Act
Kiraboshi Bank, Limited [Non-consolidated](Millions of yen, %)September
30, 2018 (A)Bankrupt and quasi-bankrupt assets

16,398

Doubtful assets
Substandard loans
Subtotal(D)

Normal assets

Difference(A) – (C)March 31,2018 (B)

September
30, 2017 (C)(626)(1,977)

17,024

18,375

66,103(502)(3,401)

66,60569,504

4,755

1,954

1,595

2,801

3,160

87,258827(3,781)86,431

91,0393,634,925(11,081)

40,415

3,646,006

3,594,510(E)

3,722,183(10,254)

36,634

3,732,437

3,685,549(D)/(E)

2.34

0.03

(0.13)

2.31

2.47

Total credit amount
Ratio of total credit amount (%)

Difference(A) – (B)

(Reference) Loans Based on the Financial Reconstruction Act after Partial Direct Write-Offs(Millions of yen, %)September
30, 2018 (A)Difference(A) – (B)

Difference(A) – (C)March 31,2018 (B)

September
30, 2017 (C)Bankrupt and quasi-bankrupt assets

6,041(1,322)(1,337)

7,363

7,378

Doubtful assets

66,103(502)(3,401)

66,60569,504

Substandard loans

4,755

1,954

1,595

2,801

3,160

76,900130(3,143)76,77080,0433,634,925(11,081)

40,415

3,646,006

3,594,510(E)

3,711,825(10,952)

37,272

3,722,777

3,674,553(D)/(E)

2.07

0.01

(0.10)

2.06

2.17

Subtotal(D)

Normal assets
Total credit amount
Ratio of total credit amount (%)

3. Coverage Status of Loans Based on the Financial Reconstruction Act
Kiraboshi Bank, Limited [Non-consolidated](Millions of yen, %)September
30, 2018 (A)Covered amount(D)

Difference(A) – (B)

Difference(A) – (C)March 31,2018 (B)

September
30, 2017 (C)74,52469,877(252)(4,647)

70,12919,067(1,279)(3,029)20,34622,096

Bankrupt and quasi-bankrupt assets

10,746718(631)

10,028

11,377

Doubtful assets

8,152(2,001)(2,350)

10,153

10,502

Reserve for possible loan losses

Substandard loans

168

4

(48)

164

216

Collateral, guarantees, etc.

50,8101,028(1,617)49,782

52,427

Bankrupt and quasi-bankrupt assets

5,652(1,342)(1,345)

6,994

6,997

Doubtful assets

43,623

1,764

(775)

41,85944,398

1,534

606

503

928

1,031

Problem assets

Substandard loans(E)87,258827(3,781)86,431

91,039Coverage ratio (%)(D)/(E)

80.08(1.05)(1.77)

81.13

81.85

4. Status of Reserve for Possible Loan Losses
Kiraboshi Bank, Limited [Non-consolidated](Millions of yen, %)September
30, 2018 (A)Reserve for possible loan losses

Difference(A) – (B)

Difference(A) – (C)March 31,2018 (B)

September
30, 2017 (C)26,44823,968(970)(2,480)24,938Provision of general reserve for possible loan losses

4,834

272

466

4,562

4,368

Provision for individual possible loan losses

19,134(1,242)(2,946)

20,37622,0808

5. Status of Problem Assets Subject to Disclosure
Kiraboshi Bank, Limited [Non-consolidated]
First half of the fiscal year ending March 2019 (as of September 30, 2018)
Disclosed debts based on Financial
Reconstruction Act

Self-assessment

Classification ofborrowers
Bankrupt borrowers
5.9
＜1.5＞

(Billions of yen)Classification
Not classified

Classification
II

Classification
III

Classification
IV

5.0

0.9

─
[0.1]

─
[4.4]

Disclosed debts(credit balance)

Collateral,guarantees, Reserve
etc.

Coverage
ratio

5.6

10.7

100.0%＜100.0%＞Non-accrual loans
74.5＜69.6＞

Virtually bankrupt borrowers

10.4
＜4.5＞

7.4

2.9

─
[0.2]

32.4

19.3

14.3
[8.1]

─
[5.8]

Doubtful assets
66.1

Borrowers with bankruptcy concerns

66.1

43.6

8.1

78.3%

Past-due loans(3 months or more)

Substandard loans

4.7

Substandard
borrowers

Borrowers
requiring
caution

6.4

0.5

Subtotal
87.2＜76.9＞

542.5

536.0

109.8

1.5

0.1

35.8%

5.9

Borrowers
requiring caution,
excluding claims
to substandard
borrowers

Disclosed debts(loan balance)
Bankrupt loans
5.9
＜1.4＞

Bankrupt andquasi-bankrupt
16.3
＜6.0＞

Risk-monitoredloans
under the Banking
Law(Object: Loans)

Total
80.0%
＜77.3%＞

0.3
Restructured
loans
4.4
Total
85.2
＜75.8＞

Claims to borrowers
requiring caution,
excluding claims tosubstandard borrowers

426.2

537.8
Normal borrowers
3,097.1

Normal assets
3,634.9

3,097.1

Total
3,722.1<3,711.8>

3,252.4

455.4

14.3

─

Ratio to total debts

87.3%

12.2%

0.3%

─

Total
3,722.1<3,711.8>

Notes:
1. Self-assessment includes loans, repayments for which payment is approved, foreign exchange, provisional payment pursuant toloans, accrued interests and privately placed bonds guaranteed by banks. The amount for privately placed bonds guaranteed by banks
is recorded in fair value.
2. Brackets indicate the reserve amounts against the classified amounts based on the self-assessment results. Reserves are recorded
for non-classified loans.
3. Kiraboshi Bank did not take partial direct write-offs. Figures assuming the bank had taken partial direct write-offs are provided inangled brackets.
4. Partial direct write-off means that, regarding debts with collateral/guarantees that are judged uncollectible or valueless, theClassification IV amount is decreased from the debt amount directly as a loan loss write-off.

9

6. Loan Breakdown by Industrial Sector
Kiraboshi Bank, Limited [Non-consolidated](i) Loan breakdown by industrial sector(Millions of yen)

Balance at
September 30,
2018 (A)All branches
Manufacturing
Agriculture, forestry
Fishery
Mining, quarrying of stone and gravel

Construction
Electricity, gas and heat supplies, and waterworks

Communication service
Transportation, postal activities
Commerce
Banks and other financial institutions

Real estate(Real estate brokerage)(Real estate leasing)
Goods rental and leasing
Scientific research, professional and technical services

Accommodations
Restaurant businesses
Living-related and personal services, amusement
services

Education, learning support
Medical healthcare and welfare
Other services
Local governments
Other

Difference(A) – (B)

3,653,817
317,523
1,006
307
1,243
188,506
12,64979,51396,564433,976
211,273
828,901
361,492
467,408
90,63749,94817,99335,60350,41817,077
110,61285,034160,423
864,588(22,414)(6,649)
31
299
119
(189)
(120)
(1,563)(2,559)6,350
1,787
15,6169,579
6,037(1,550)(1,483)(1,849)643(5,494)505
1,045(3,716)(6,295)(17,346)

Difference(A) – (C)17,436(8,049)
61
298
188
2,521
(477)
(1,952)(2,416)
14,2739,130
36,31917,897
18,421
(916)
1,387
(341)
468
(4,714)
1,051
3,944(2,038)(11,377)(19,927)

Balance at
March 31,2018 (B)3,676,231
324,172975
8
1,124
188,695
12,76981,07699,123427,626
209,486
813,285
351,913461,371
92,18751,431
19,842
34,96055,912
16,572
109,567
88,750166,718
881,934

Balance at
September 30,
2017 (C)3,636,381
325,572945
9
1,055
185,985
13,126
81,46598,980419,703
202,143792,582
343,595
448,987
91,55348,561
18,33435,135
55,132
16,026
106,668
87,072
171,800
884,515(Notes)
1. As special international financial transaction account is included in “Other,” and the same applies for (ii) below.
2. “Real estate brokerage” consists of real estate services by businesses with a license for real estate brokerage, while“Real estate leasing” consists of leasing by personal businesses mainly engaged in apartment management. The same
applies for (ii) below.

(ii) Risk-monitored loans by industrial sector(Millions of yen)

Balance at
September 30,
2018 (A)All branches
Manufacturing
Agriculture, forestry
Fishery
Mining, quarrying of stone and gravel

Construction
Electricity, gas and heat supplies, and waterworks

Communication service
Transportation, postal activities
Commerce
Banks and other financial institutions

Real estate(Real estate brokerage)(Real estate leasing)
Goods rental and leasing
Scientific research, professional and technical services

Accommodations
Restaurant businesses
Living-related and personal services, amusement
services

Education, learning support
Medical healthcare and welfare
Other services
Local governments
Other

Difference(A) – (B)85,27812,313
217
–
–
6,244
–
4,941
1,894
26,427
128
7,128
1,551
5,577
169
1,752
570
1,602
1,746
189
6,133
2,685
–
11,130474(3,607)
(22)
–
–
1,201
–
1,146
8
2,662
(24)
(169)
418
(587)
5
139
(161)
338
50
(120)
(706)
15
–
(285)
10

Difference(A) – (C)(4,101)(5,229)
(24)
–
–
1,201
–
1,007
(8)
2,623
1
(775)
231
(1,006)
62
(153)
(27)
179
277
(176)
(1,122)(839)–(1,101)

Balance at
March 31,2018 (B)84,804
15,920
239
–
–
5,043
–
3,795
1,886
23,765
152
7,297
1,133
6,164
164
1,613
731
1,264
1,696
309
6,839
2,670
–
11,415

Balance at
September 30,
2017 (C)89,37917,542
241
–
–
5,043
–
3,934
1,902
23,804
127
7,903
1,320
6,583
107
1,905
597
1,423
1,469
365
7,255
3,524
–
12,231

7. Deposits and Loans
Kiraboshi Bank, Limited [Non-consolidated](1) Status of loans(Millions of yen, %)September 30,
2018 (A)Loans (balance)（Excluding offshore accounts(D)
Loans to small and medium-sized enterprises (E)Small and medium-sized enterprise loans

Personal loans
Percentage of total loans
Loans (average balance)(E)/(D)3,653,817
3,653,692
3,002,653
2,143,956
858,69782.18
3,623,555

Difference(A) – (B)(22,414)(22,390)
2,384
13,512(11,128)0.57
11,642Difference(A) – (C)17,436
17,46959,762
66,964(7,201)
1.25
22,006

March 31,2018 (B)3,676,231
3,676,082
3,000,269
2,130,444
869,825
81.61
3,611,913

September 30,
2017 (C)3,636,381
3,636,223
2,942,891
2,076,992
865,898
80.93
3,601,549(2) Consumer loan balance(Millions of yen)

September 30,
2018 (A)Consumer loan balance
Housing-related loans
Other loans

802,429
681,560
120,868

Difference(A) – (B)
(13,640)(12,641)(1,000)Difference(A) – (C)(12,533)(11,815)(718)

March 31,2018 (B)
816,069
694,201
121,868

September 30,
2017 (C)814,962
693,375
121,586(3) Status of deposits(Millions of yen)

September 30,
2018 (A)
Deposits (balance)
Deposits
Personal deposits
Corporate deposits
Deposits
Negotiable certificates of deposit
Negotiable certificates of deposit
Deposits
Negotiable certificates of deposit

4,617,290
4,588,124
3,080,518
1,395,356
112,249
29,1664,640,562
4,614,334
26,228Difference(A) – (B)
(98,629)(114,845)(77,866)(5,739)(31,240)
16,216(125,462)(128,287)
2,826

Difference(A) – (C)
(192,128)(205,101)(122,774)(33,219)(49,107)
12,973(136,798)(139,352)
2,555

March 31,2018 (B)
4,715,919
4,702,969
3,158,384
1,401,095
143,489
12,9504,766,024
4,742,621
23,402September 30,
2017 (C)4,809,418
4,793,225
3,203,292
1,428,575
161,356
16,193
4,777,360
4,753,686
23,673(4) Deposits and loan balances by region(Millions of yen)

September 30,
2018 (A)
Deposits
Tokyo Metropolis
Kanagawa Prefecture
Others
Loans
Tokyo Metropolis
Kanagawa Prefecture
Others

4,588,124
3,521,355
991,706
75,063
3,653,817
3,057,425
553,346
43,04611

Difference(A) – (B)(114,845)(118,091)
5,501(2,254)(22,414)(19,791)(2,582)(40)

Difference(A) – (C)(205,101)(198,481)(3,313)(3,306)
17,436
14,0233,301
113

March 31,2018 (B)4,702,969
3,639,446
986,205
77,317
3,676,231
3,077,216
555,928
43,086

September 30,
2017 (C)4,793,225
3,719,836
995,019
78,3693,636,381
3,043,402
550,045
42,933

(5) Assets under management(Millions of yen)

September 30,
2018 (A)Assets under management
Investment trust
Life insurance
Public bonds

489,965
220,494
228,455
41,015Difference(A) – (B)12,312
15,179(3)(2,864)

Difference(A) – (C)
5,797
4,622
7,437
(6,262)

March 31,2018 (B)477,653
205,315
228,458
43,879September 30,
2017 (C)484,168
215,872
221,018
47,277(6) Status of branches and employees(Branches, persons)September 30,
2018 (A)
Domestic head office and branch offices (including representative offices)Tokyo Metropolis
Kanagawa Prefecture
OthersNumber of executives and employees
Number of executives
Number of employees

164
124
36
4
3,029
15
3,014

Difference(A) – (B)
–
–
–
–
(103)
(13)
(90)

Difference(A) – (C)
–
–
–
–
(240)
(13)
(227)

March 31,2018 (B)
164
124
36
4
3,132
28
3,104

September 30,
2017 (C)
164
124
36
4
3,269
28
3,241

(Note)For employees above, the number of employees, including executive officers, but excluding temporary employees, fixed-term
employees, and secondees, has been used.

(7) Construction in trust(Millions of yen)

September 30,
2018 (A)Value of construction in trust contracts
Balance of construction in trust purchased

15,871
4,483

12

Difference(A) – (B)
(7,403)(3,625)Difference(A) – (C)
6,902
251

March 31,2018 (B)23,2748,108

September 30,
2017 (C)
8,969
4,232

III. Valuation Gain/Loss on Securities
1. Valuation Standards
Trading-purpose securities

Mark-to-market method

Marketable bonds held to maturity

Amortized cost method

Available-for-sale securities

Available-for-sale securities with market value

Mark-to-market method (Valuation gains or losses onavailable-for-sale securities are recorded as aseparate item under net assets.)

Available-for-sale securities whose market values are
considered to be extremely difficult to assess

Cost method

Investments in subsidiaries and affiliates

Cost method

2. Gain/Loss on Valuation(1) Tokyo Kiraboshi Financial Group, Inc. [Consolidated](Millions of yen)
September 30, 2018
Gain (loss) on
valuation (A)(A) – (B)

September 30, 2017

Valuation
gain

Valuation
loss

Gain (loss) on
valuation (B)Valuation
gain

Valuation
loss

Marketable bonds held to maturity

10,981(3,475)

11,765783

14,456

14,670213

Available-for-sale securities

8,755

1,076

16,328

7,573

7,679

13,733

6,053

Stocks

10,962

2,556

11,849

887

8,406

9,461

1,055

Bonds

(545)

(968)

1,349

1,895

423

2,054

1,631

Others(1,661)

(511)

3,129

4,790

(1,150)

2,217

3,367

19,737(2,399)28,093

8,356

22,13628,403

6,267

Total

(2) Kiraboshi Bank, Limited [Non-consolidated](Millions of yen)
September 30, 2018
Gain (loss) on
valuation (A)(A) – (B)

September 30, 2017

Valuation
gain

Valuation
loss

Gain (loss) on
valuation (B)Valuation
gain

Valuation
loss

Marketable bonds held to maturity

17,558(4,898)18,188629

22,456

22,568112

Available-for-sale securities

13,773(72)

20,602

6,829

13,845

19,233

5,388

Stocks12,312

2,168

12,871559

10,144

10,876

732

Bonds

955

(1,653)

2,727

1,771

2,608

4,065

1,457

Others

505

(588)

5,003

4,498

1,093

4,291

3,198

31,332(4,970)38,7907,458

36,30241,802

5,500

Total

13