Tokyo Kiraboshi Financial Group, Inc.
Listed Code: 7173
(URL: https://www.tokyo-kiraboshifg.co.jp/)
Listed Stock Exchange: TSE1
November 13, 2018

Consolidated Financial Reportfor the First Half of the Fiscal Year Ending March 31, 2019
<Under Japanese GAAP>
Representative: Keizo Ajioka, President
Responsible person for inquiries: Hiroshi Shibuya, General Manager of Corporate Planning Division
Telephone: +81-3-5341-4301
Date of submission of quarterly security report: November 22, 2018
Date to start dividend payment: December 4, 2018
Establishment of special transaction account: Not establishedPreparation of supplementary material on financial results: Yes
Holding of financial results presentation meeting: None

Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2019
(From April 1, 2018 to September 30, 2018)(1) Results in consolidated operations
Ordinary income(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent(¥ million)(%)(¥ million)(%)(¥ million)(%)

First half of the fiscal year ending March 31, 201939,459

(6.6)

2,685

(53.0)

3,760(21.8)First half of the fiscal year ended March 31, 2018

42,264

3.5

5,719

15.2

4,812

(79.5)(Note) Comprehensive income: First half of the fiscal year ending March 31, 2019: ¥ 5,625 million (26.0%)
First half of the fiscal year ended March 31, 2018: ¥ 7,606 million (64.3%)
Profit attributable toowners of parent
per share (¥)

Profit attributable toowners of parent
per share (Diluted) (¥)

First half of the fiscal year ending March 31, 2019119.44

72.34

First half of the fiscal year ended March 31, 2018

154.07101.10(2) Consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets tototal assets ratio
(%)
5.2
5.3

First half of the fiscal year ending March 31, 2019
5,646,054
295,590
Fiscal year ended March 31, 2018
5,482,704
291,020(Reference)
Equity: First half of the fiscal year ending March 31, 2019: ¥ 295,248 million Fiscal year ended March 31, 2018: ¥290,646 million(Note)“Equity” consists of subscription rights to shares at the end of the period and non-controlling interests at the end of the period subtracted
from net assets, and the “Net assets to total assets ratio” is calculated by dividing equity by total assets at the end of the period. Note that
this “Net assets to total assets ratio” is not the net assets to total assets ratio required for the Capital Adequacy Ratio Notification(Financial Services Agency Notification No. 20 of 2006).

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

Second quarter

Third quarter

Fiscal year-end

AnnualFiscal year ended March 31, 2018

–

30.00

–

30.00

60.00

Fiscal year ending March 31, 2019

–

30.00

Fiscal year ending March 31, 2019 (Forecast)
–
30.00
60.00
(Note 1) Changes to the dividend forecast most recently announced: None
(Note 2) “Dividends” above refers to dividends for common stock. With regard to dividends for class shares (unlisted) issued by theCompany with different rights than those of common stock, refer to “Dividend situation for class shares” below.

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2019
(From April 1, 2018 to March 31, 2019)(Percentages represent increases or decreases from the previous year results.)

Profit attributable toowners of parent

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

Profit attributable toowners of parent per share

(%)

2,900
(38.6)
4,200
14.2
Full-year(Note) Changes to the forecast of consolidated operating performance most recently announced: None(¥)
129.91* Notes(1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries
resulting in change in scope of consolidation): Yes
New subsidiaries: ___ (name of company(ies))
Excluded subsidiaries: 2 (name of company(ies) The Tokyo Tomin Bank, Limited and ShinGinko Tokyo, Limited)(Note) Details are stated under “(5) Changes in significant subsidiaries during the current interim accounting
period” in “2. Consolidated Interim Financial Statements and Notes” on page 9 of the Attached Materials.

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards: Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None

(3) Number of shares issued (common stock)a. Total number of shares issued at the end of the period (including treasury stock)
First half of the fiscal year ending March 31, 201930,650,115 sharesFiscal year ended March 31, 2018

30,650,115 sharesb. Number of treasury stock at the end of the period
First half of the fiscal year ending March 31, 2019

171,894 sharesFiscal year ended March 31, 2018180,661 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
First half of the fiscal year ending March 31, 201930,476,403 sharesFirst half of the fiscal year ended March 31, 2018

30,473,452 shares

(Non-consolidated Financial Statements)
1. Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2019

(From April 1, 2018 to September 30, 2018)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)First half of the fiscal
year ending March 31,
2019First half of the fiscal
year ended March 31,
2018

Operating income

Operating profit

Ordinary profit

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

(%)

1,691

(1.4)

1,289

9.6

1,269

9.6

1,208

8.0

1,717

10.6

1,175

15.8

1,157

16.9

1,118

17.4

Net income per share(¥)
First half of the fiscal
year ending March 31,
2019First half of the fiscal
year ended March 31,
2018

35.69

32.82

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

Total net assets(¥ million)

Net assets tototal assets ratio(%)

First half of the fiscal year ending March 31, 2019
196,282
196,162
99.9
Fiscal year ended March 31, 2018
196,124
196,002
99.8(Reference)
Equity: First half of the fiscal year ending March 31, 2019: ¥196,106 million Fiscal year ended March 31, 2018: ¥195,900 million(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year subtracted from net assets, and the “Net assets to total
assets ratio” is calculated by dividing equity by total assets at the end of the fiscal year. Note that this “Net assets to total assets ratio” is
not the net assets to total assets ratio required for the Capital Adequacy Ratio Notification (Financial Services Agency Notification No.
20 of 2006).

* This report is not subject to the scope of review by certified public accountants and audit corporations.
* Disclaimer and special note for referring to the forecast of operating performance
1. Since the Company falls under the category of specified company (a company undertaking businesses specified in Article
17-15, Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.), it prepares the Interim
Consolidated and Non-consolidated Financial Statements for the first-half accounting period.
2. Forward-looking statements concerning financial forecasts contained in these materials are based on information available
when the forecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guaranteethat these forecasts will be achieved, and actual results may differ significantly from the forecasts due to a variety of factors.

* Dividend situation for class shares
The breakdown of dividend per share for class shares with different rights than those of common stock is as follows.
(First series Class I preferred shares)
Dividend per share (¥)
Fiscal year ended March 31, 2018

First quarter

Second quarter

Third quarter

Fiscal year-end

Annual–123.00–123.00246.00Fiscal year ending March 31, 2019–124.00Fiscal year ending March 31, 2019–124.00248.00(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Amount paid per share: ¥20,000
3. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2018(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 1.1%(*Annual dividend rate: Figures less than % are calculated to three decimal places with the third decimal place rounded off
to the second decimal place.)(c) Japanese yen TIBOROn March 31, 2017, the Japanese yen TIBOR (12-month maturity) = 0.12818%(d) Shares issued
750,000(2) Fiscal year ending March 31, 2019 (Forecast)(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 1.1%(*Annual dividend rate: Figures less than % are calculated to three decimal places with the third decimal place rounded off
to the second decimal place.)(c) Japanese yen TIBOROn March 30, 2018, the Japanese yen TIBOR (12-month maturity) = 0.13636%(d) Shares issued
750,000(Class II preferred shares)
Dividend per share (¥)
Fiscal year ended March 31, 2018

First quarter

Second quarter

Third quarter

Fiscal year-end

Annual–12.818–12.81825.636

13.63627.272

Fiscal year ending March 31, 2019–13.636
Fiscal year ending March 31, 2019–
(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Amount paid per share: ¥20,000
3. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2018(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn March 31, 2017, the Japanese yen TIBOR (12-month maturity) = 0.12818%(d) Shares issued
2,000,000(2) Fiscal year ending March 31, 2019(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn March 30, 2018, the Japanese yen TIBOR (12-month maturity) = 0.13636%(d) Shares issued
2,000,000

Attached Materials
Index
1. Qualitative Information Regarding Consolidated Results for the first half of the fiscal year ending
March 31, 2019(1)

Operating Results ····························································································

2(2)

Financial Position ····························································································

3(3)

Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking
Statements ································································································

3

2. Consolidated Interim Financial Statements and Notes(1)

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

Consolidated Interim Statements of Income and Consolidated Interim Statements of

4

Comprehensive Income ···················································································

5-6

(3)

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

7-8

(4)

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

8(5)

Changes in significant subsidiaries during the current interim accounting period··············

9(6)

Matters Related to Business Combinations ··························································

9(Reference) Trust Asset Balance Table ·····································································

10

3. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank, Limited(1)

Overview of Non-consolidated Financial Statements ···············································

11

(2)

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

12

(3)

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

13(Appendix)

Financial Results for the First Half of the Fiscal Year Ending March 31, 2019
- Supplementary Information-

1

1. Qualitative Information Regarding Consolidated Results for the first half of the fiscal year ending
March 31, 2019(1) Operating Results
Effective May 1, 2018, the Group changed its business name from Tokyo TY Financial Group, Inc. toTokyo Kiraboshi Financial Group, Inc. Further, three consolidated subsidiaries of the Group, namely The
Tokyo Tomin Bank, Limited, The Yachiyo Bank, Limited and ShinGinko Tokyo, Limited, concluded anabsorption-type merger with The Yachiyo Bank, Limited as the surviving company, and The Tokyo
Tomin Bank, Limited and ShinGinko Tokyo, Limited as the dissolving companies, to form Kiraboshi
Bank, Limited.
Based on its management philosophy “to be a financial group for small and medium-sized enterprisecustomers and individual customers in the Tokyo metropolitan area that will contribute to thedevelopment of local communities through comprehensive financial services”, the Group aims todevelop its business of providing “comprehensive services with particular strength in finance”, bybuilding a “dialogue” based business model that would lead to the enhancement of satisfaction forcustomers, community and investors.
Looking back at the Japanese economy during the first half of the fiscal year ending March 31, 2019
(April 1, 2018 to September 30, 2018), a gradual recovery trend continued amid companies’ abundant
cash flows supporting increase in capital investment aimed at raising labor efficiency and streamlining
operations, in addition to growth in personal consumption notably on the back of improvement in
employment and income environments. However, looking ahead, although business recovery is expected
to continue driven by domestic demand, rise of personnel expenses in the face of growing labor shortage
may put downward pressure on corporate earnings. There are also concerns about the effects that thespate of natural disasters may have on the economy as well as uncertainties regarding overseas
economies caused by trade and other issues.
In the Tokyo metropolitan area where the Group has its principal operational base, the businessenvironment for SMEs is on the whole showing mild improvement with expansion in inbound tourist
demand reflecting an increase in foreign tourists to Japan, demand related to the Tokyo Olympic andParalympic Games picking up steam, rise in construction investment driven by redevelopment projects inthe urban centers, and other factors. Meanwhile, the main issues to be addressed are the persistent
shortage of workers with its effect on production and loss of opportunity for new orders, and rise inpersonnel, raw materials, transportation and other costs.
In this environment, consolidated ordinary income for the first half of the fiscal year ending March
31, 2019 decreased by ¥2.8 billion year-on-year to ¥39.4 billion, due largely to decreases in interest on
loans and discounts and gain on sale of securities. Consolidated ordinary expenses increased by ¥0.2
billion year-on-year to ¥36.7 billion. As a result, consolidated ordinary profit came to ¥2.6 billion, a ¥3billion decline year-on-year. Profit attributable to owners of parent decreased by ¥1.0 billion year-on-yearto ¥3.7 billion, reflecting in large part a ¥1.5 billion decrease in income taxes - deferred due to tax effectaccounting.

2(2) Financial Position
As of September 30, 2018, total assets amounted to ¥5,646.0 billion, up ¥163.3 billion from the endof the previous fiscal year, and net assets stood at ¥295.5 billion, a ¥4.5 billion increase from the end of
the previous fiscal year.
With respect to major account balances, deposits decreased ¥75.6 billion from the end of the previous
fiscal year to ¥4,576.4 billion, and loans and bills discounted decreased ¥22.0 billion from the end of theprevious fiscal year to ¥3,654.0 billion, while securities increased ¥18.1 billion to ¥1,226.7 billion.
(3) Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking
Statements
Taking into consideration the results of the first half of the fiscal year ending March 31, 2019, thefull-year forecast of consolidated operating performance for the fiscal year ending March 31, 2019 wasrevised on November 2, 2018 as follows.
Revision to the Full-Year Forecast of Consolidated Operating Performancefor the Fiscal Year Ending March 31, 2019 (From April 1, 2018 to March 31, 2019)
Ordinary profit

Forecast before revision (A)(announced on May 15, 2018)

Profit attributable toProfit attributable toowners of parent

owners of parent per share(¥ million)(¥ million)

(¥)

1,600

3,200

97.12

Forecast after revision (B)(announced on November 2, 2018)

2,900

4,200

129.91

Amount of change (B – A)

1,300

1,000

Percentage change (%)

81.2

31.2

(Reference) Previous fiscal year results(Fiscal year ended March 31, 2018)

4,727

3,677

3

112.94

2. Consolidated Interim Financial Statements and Notes(1) Consolidated Interim Balance Sheets(¥ million)
As of March 31, 2018
AssetsCash and due from banks
Call loans and bills bought
Other debt purchased
Trading account securities
Securities
Loans and bills discounted
Foreign exchange
Other assets
Tangible fixed assets
Intangible fixed assets
Net defined benefit assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under securities lending transactions
Borrowed money
Foreign exchanges
Borrowed money from trust account
Other liabilities
Reserve for employee bonuses
Net defined benefit liabilities
Reserve for directors’ retirement benefits
Reserve for point card certificates
Provision for loss on interest repayments
Reserve for loss on dormant deposit repayments
Provision for loss on cancellation of system contracts
Provision for loss on transfer of business
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net Assets
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Net unrealized gain on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

4

As of September 30, 2018377,636
1,264
55,650707
1,208,629
3,676,146
13,556
84,062
59,6272,365
18,391
5,184
5,677(26,195)
5,482,704

594,452
1,203
54,282735
1,226,767
3,654,074
6,295
40,643
61,276
2,737
18,8383,915
5,927(25,095)
5,646,054

4,652,109
9,540
58,937357,265
73,558224
53
25,167
2,140
2,845
67
58
8
1,185
200
194
612
1,837
5,677
5,191,683

4,576,448
25,756
226,461
422,224
63,611
390－
25,824
1,831
70
20
41
8
1,177
－
－
600
66
5,927
5,350,463

27,500150,576
106,206(625)
283,657
6,075
(242)
10
1,146
6,989
101
271
291,020
5,482,704

27,500150,567
108,934(589)
286,413
6,354
(242)
8
2,714
8,835
56
285
295,5905,646,054

(2) Consolidated Interim Statements of Income and Consolidated Interim Statements of Comprehensive Income(Consolidated Interim Statements of Income)Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Trust fees
Fees and commissions
Other operating income
Other ordinary income
Ordinary expenses
Financing expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary profit
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Profit before income taxes
Income tax – current
Income tax – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent(¥ million)
First half of the fiscal year ended First half of the fiscal year ending
March 31, 2018
March 31, 201942,26439,45928,82530,01522,175
21,540
6,010
7,829
27
17
8,577
8,092
1,804
643
3,029
690
36,54436,773
1,563
1,789
872
658
1,334
1,290
430
439
31,17028,898
2,045
4,355
5,719
2,685
119
0
119
0
124
36
124
36
5,714
2,648
787
349
98
(1,475)886(1,125)
4,828
3,774
15
13
4,812
3,760

5

(Consolidated Interim Statements of Comprehensive Income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income of entities accounted for using equity method

Comprehensive income(Breakdown)(¥ million)
First half of the fiscal year ended First half of the fiscal year ending
March 31, 2018
March 31, 2019
4,828
3,774
2,777
1,850
2,394
435
(32)
－
2
(1)
348
1,568
66
(151)
7,606
5,625
7,588
17

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6

5,606
18

(3) Consolidated Interim Statements of Changes in Net Assets(First half of the fiscal year ended March 31, 2018)(¥ million)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

27,500150,733

104,574

Balance at beginning of the year

Total shareholders’equityTreasury stock(632)

282,175

Changes of items during the reporting period
10

Purchase of shares of consolidated subsidiaries

10

Dividends of surplus(1,046)(1,046)

Profit attributable to owners of parent

4,812

4,812

Acquisition of treasury stock(5)

Disposition of treasury stock

(19)

(19)

42

37
(132)

(132)

Change in ownership interest in subsidiaries

32

32

Reversal of revaluation reserve for land
Net changes of items other than shareholders’equity during the reporting period
－

(126)

3,799

23

3,696

27,500150,606

108,373(608)

285,871

Total changes of items during the reporting period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference on
available-for-salesecurities

Balance at beginning of the year

3,166

Revaluation Foreign currency Remeasurements Total accumulated
othertranslationof definedreserve forcomprehensive
adjustment
benefit plansincome
land
(209)

8

(2,216)

748

Subscription
Nonrights tocontrollingsharesinterests
95

337

Total net
assets283,357

Changes of items during the reporting period
10

Purchase of shares of consolidated subsidiaries

Dividends of surplus(1,046)

Profit attributable to owners of parent

4,812

Acquisition of treasury stock(19)

Disposition of treasury stock

37
(132)

Change in ownership interest in subsidiaries

32

Reversal of revaluation reserve for land
Net changes of items other than shareholders’equity during the reporting period

2,457

(32)

2

348

2,775

5

(100)

2,681

Total changes of items during the reporting period

2,457

(32)

2

348

2,775

5

(100)

6,377

Balance at end of period

5,623

(242)

10

(1,867)

3,524

101

236

289,7347

(First half of the fiscal year ending March 31, 2019)(¥ million)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

27,500150,576

106,206

Balance at beginning of the year

Total shareholders’equityTreasury stock(625)

283,657

Changes of items during the reporting period(1)

Purchase of shares of consolidated subsidiaries(1)

Dividends of surplus(1,031)(1,031)

Profit attributable to owners of parent

3,760

3,760

Acquisition of treasury stock
Disposition of treasury stock(6)

Change in ownership interest in subsidiaries

0

(16)

(16)

52

45
0

Net changes of items other than shareholders’equity during the reporting period
Total changes of items during the reporting period
Balance at end of period

－

(8)

2,728

35

2,756

27,500150,567

108,934(589)

286,413

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance at beginning of the year

6,075

Revaluation Foreign currency Remeasurements Total accumulated
othertranslationof definedreserve forcomprehensive
adjustment
benefitplans
income
land
(242)

10

1,146

6,989

NonSubscription
controllingrights tointerests
shares101

271

Total net
assets291,020

Changes of items during the reporting period(1)

Purchase of shares of consolidated subsidiaries

Dividends of surplus(1,031)

Profit attributable to owners of parent

3,760

Acquisition of treasury stock(16)

Disposition of treasury stock

45

Change in ownership interest in subsidiaries

0

Net changes of items other than shareholders’equity during the reporting period

279

－

(1)

1,568

1,845

(45)

14

1,814

Total changes of items during the reporting period

279

－

(1)

1,568

1,845

(45)

14

4,570

6,354

(242)

8

2,714

8,835

56

285

295,590

Balance at end of period(4) Notes on Premise of Going Concern
Not applicable.

8(5) Changes in significant subsidiaries during the current interim accounting period
The Tokyo Tomin Bank, Limited and ShinGinko Tokyo, Limited, which had been included in the scope of
consolidation, ceased to exist effective May 1, 2018 as a result of the absorption-type merger in which theGroup’s consolidated subsidiary The Yachiyo Bank, Limited is the surviving company. As of the same date, The
Yachiyo Bank, Limited changed its business name to Kiraboshi Bank, Limited.
Also, effective September 3, 2018, Kiraboshi Capital Co., Ltd was established as a wholly-owned subsidiaryof the Group and is included in the scope of consolidation from the first half of the fiscal year ending March 31,
2019. Note that this event does not constitute a change in specified subsidiaries.
(6) Matters Related to Business Combinations(Transaction under common control, etc.)
1. Summary of business combination(1) Name and business of the merging companies(Surviving company in the absorption-type merger)
Name: The Yachiyo Bank, Limited
Nature of business: Banking(Dissolving companies in the absorption-type merger)
Name: The Tokyo Tomin Bank, Limited
Nature of business: Banking
Name: ShinGinko Tokyo, Limited
Nature of business: Banking(2) Date of business combination
May 1, 2018(3) Legal form of the business combination
Absorption-type merger with The Yachiyo Bank, Limited as the surviving company, and The Tokyo
Tomin Bank, Limited and ShinGinko Tokyo, Limited as the dissolving companies.
(4) Name of company after combination
Kiraboshi Bank, Limited(5) Other matters relating to the outline of the transaction
The objective of the merger is to use the “strengths” and “features” of Tokyo Tomin Bank, Yachiyo
Bank and ShinGinko Tokyo that have been cultivated over the years, to maximize the integration effectby taking business integration one step further to a merger transaction, to enhance competitiveness andfurther develop management efficiency, and thereby establish a solid management foundation that canfurther demonstrate the Group’s presence in the Tokyo metropolitan area, with focus on Tokyo and thenortheast area of Kanagawa Prefecture. By demonstrating the true value as a mainstay of the regional
financial sector, the Group will strive to become the No. 1 regional bank most loved by customers in
the Tokyo metropolitan area.
2. Outline of the accounting treatment applied
The transaction is treated as a transaction under common control pursuant to the “Accounting Standard
for Business Combinations” and the “Guidance on Accounting Standard for Business Combinations andAccounting Standard for Business Divestitures”.

9(Reference)
Trust asset balance table(As of September 30, 2018)(¥million)
Asset
Monetary claims
Other monetary claims
Property, Plant and Equipment
Cash deposits
Deposits
Total

Value

Liability

13,706 Monetary claims in trust
13,706 Composite trusts
545
92
92
Total
14,34310

Value

13,769574

14,3433. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank, Limited(1) Overview of Non-consolidated Financial Statements
November 13, 2018
Company name: Kiraboshi Bank, Limited
Representative: Hisanobu Watanabe, President
Responsible person for inquiries: Hiroshi Shibuya, Director, Managing Executive Officer, General manager of Corporate Planning Division

URL: https://www.kiraboshibank.co.jp
Telephone: +81-3-6447-5799
Note: Amounts less than one million yen and figures beyond the first decimal place have been truncated.

1. Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2019
(From April 1, 2018 to September 30, 2018)(1) Results in non-consolidated operations (cumulative)(Percentages represent year-on-year changes.)

Ordinary income

Ordinary profit

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

First half of the fiscal year ending
March 31, 201936,131

102.5

2,840

6.1

3,918

80.3

First half of the fiscal year ended
March 31, 2018

17,840

(4.4)

2,676

(13.2)

2,172(25.3)(2) Non-consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets to total assets ratio(%)

First half of the fiscal year ending
March 31, 2019

5,644,905

287,488

5.0

Fiscal year ended March 31, 2018

2,331,024

110,969

4.7(Reference)
Equity: First half of the fiscal year ending March 31, 2019: ¥287,488 million
Fiscal year ended March 31, 2018: ¥110,969 million(Note 1)Figures for the first half and full year of the fiscal year ended March 31, 2018 are figures of the former Yachiyo Bank, Limited,the surviving company.
(Note 2)“Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculated by dividing
equity by total assets at the end of the period. Note that this “Net assets to total assets ratio” is not the net assets to total assets
ratio required for the Capital Adequacy Ratio Notification (Financial Services Agency Notification No. 19 of 2006).

11

○Non-consolidated Interim Financial Statements(2) Non-consolidated Interim Balance Sheets
Kiraboshi Bank, Limited(¥ million)

As of March 31, 2018
AssetsCash and due from banks
Call loans
Other debt purchased
Trading account securities
Securities
Loans and bills discounted
Foreign exchange
Other assets
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit
Call money
Payables under securities lending transactions
Borrowed money
Foreign exchanges
Other liabilities
Reserve for employee bonuses
Reserve for retirement benefits
Reserve for point card certificates
Reserve for loss on dormant deposit repayments
Provision for loss on cancellation of system contracts
Provision for contingent loss
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net Assets
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

As of September 30, 201870,28720,0008,675
674
567,201
1,605,223
10,106
20,16730,967
667
－
5,223
1,504
(9,674)2,331,024

594,258
1,203
54,282735
1,219,635
3,653,817
6,295
37,49569,662
2,647
15,076
7,836
5,927(23,968)
5,644,905

2,117,183
6,210
32,937
51,191
－
0
4,407
825
2,308
－
670
85
374
2,356
1,504
2,220,055

4,588,124
29,166
226,461
422,224
63,411
390
15,873
1,701
－
2
1,177
－
600
2,356
5,927
5,357,416

43,73432,92232,582
109,239
1,397
331
1,729
110,9692,331,024

43,734
166,173
67,283
277,191
10,20789
10,297
287,488
5,644,905(Note)
Figures for the previous fiscal year (ended March 31, 2018) are figures of the former Yachiyo Bank, Limited, the surviving
company.

12(3) Non-consolidated Interim Statements of Income
Kiraboshi Bank, Limited

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Trust fees
Fees and commissions
Other operating income
Other ordinary income
Ordinary expenses
Financing expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income(¥ million)
First half of the fiscal year ended First half of the fiscal year ending
March 31, 2018
March 31, 201917,84036,131
13,88728,493
9,429
19,470
4,245
8,404
－
15
3,155
6,568
401
368
395
686
15,16333,290
572
1,594
381
593
757
1,452
82
288
12,65525,825
1,096
4,130
2,676
2,840
0
0
0
0
92
21
92
21
2,584
2,818
95
60
317
(1,160)412(1,099)
2,172
3,918

(Note)
Figures for the first half of the previous accounting period (April 1, 2017 to September 30, 2017) are figures of the former
Yachiyo Bank, Limited, the surviving company.

13