Tokyo TY Financial Group, Inc.
Listed Code: 7173
(URL: http://www.tokyo-tyfg.co.jp/)
Listed Stock Exchange: TSE1
November 11, 2016

Consolidated Financial Reportfor the First Half of the Fiscal Year Ending March 31, 2017
<Under Japanese GAAP>
Representative: Keizo Ajioka, President
Responsible person for inquiries: Arihito Suito, General Manager, Corporate Planning Division
Telephone: +81-3-5341-4301
Date of submission of quarterly security report: November 25, 2016
Date to start dividend payment: December 2, 2016
Establishment of special transaction account: Not establishedPreparation of supplementary material on financial results: Yes
Holding of financial results presentation meeting: None

Note: Amounts less than one million yen and figures beyond the first decimal place have been truncated.

1. Consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2017
(From April 1, 2016 to September 30, 2016)(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, 201740,8162.5

4,964(25.8)

23,565391.9

First half of the fiscal year ended March 31, 2016

39,791

–

6,697

–

4,790

–

(Note) Comprehensive income: First half of the fiscal year ending March 31, 2017: ¥21,332 million (578.4%)
First half of the fiscal year ended March 31, 2016: ¥3,144 million (– %)Profit attributable toowners of parent
per share (¥)
First half of the fiscal year ending March 31, 2017770.24

Profit attributable toowners of parent
per share (Diluted) (¥)
477.73164.79158.71First half of the fiscal year ended March 31, 2016
(Note 1) “Profit attributable to owners of parent” and “Comprehensive income” in the first half of the fiscal year ending March 31, 2017
include a ¥19,443 million gain on bargain purchase arising from the business integration with ShinGinko Tokyo, Limited.
(Note 2) As the Company was established on October 1, 2014, percentage changes from the first half of the previous year for the
first half of the fiscal year ended March 31, 2016 are not provided.

(2) Consolidated financial position
Net assets tototal assets ratio(%)
September 30, 2016
5,581,200
282,388
5.0
March 31, 2016
5,112,540
203,216
3.9(Reference) Equity: September 30, 2016: ¥282,035 million
March 31, 2016: ¥202,882 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.
Total assets(¥ million)

Total net assets(¥ million)

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

Second quarter

Third quarter

Fiscal year-end

AnnualFiscal year ended March 31, 2016

–

30.00

–

30.00

60.00

Fiscal year ending March 31, 2017

–

30.00

Fiscal year ending March 31, 2017 (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, 2017
(From April 1, 2016 to March 31, 2017)(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
(¥)

8,900
(38.4)
25,100166.6
823.48Full-year(Note 1) Changes to the forecast of consolidated operating performance most recently announced: None
(Note 2) “Profit attributable to owners of parent” includes a ¥19,443 million gain on bargain purchase arising from the businessintegration with ShinGinko Tokyo, Limited.

* Notes(1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries
resulting in change in scope of consolidation): Yes
Included one subsidiary: ShinGinko Tokyo, Limited(Note) Details are stated under “(1) Changes in Significant Subsidiaries During the Six Months under Review” in 2. Matters
Regarding Summary Information (Notes)” on page 3 of the Attached Materials.

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a.
b.
c.
d.

Changes in accounting policies due to revisions to accounting standards: Yes
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatement of prior period financial statements after error corrections: None
(Note) Details are stated under “(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements ofPrior Period Financial Statements After Error Corrections” in 2. Matters Regarding Summary Information (Notes) on page
3 of the Attached Materials.

(3) Number of shares issued (common stock)a. Total number of shares issued at the end of the period (including treasury stock)
September 30, 2016

30,650,115 shares

March 31, 2016

29,227,826 sharesb. Number of treasury stock at the end of the period
September 30, 2016

171,846 shares

March 31, 2016

169,852 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
First-half period ended September 30, 2016

30,479,358 sharesFirst-half period ended September 30, 2015

29,067,653 shares(Note)“Total number of shares issued at the end of the period (including treasury stock)” for September 30, 2016 includes an increase of
1,422,289 shares arising from the business integration with ShinGinko Tokyo, Limited.

(Non-consolidated Financial Statements)
1. Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2017

(From April 1, 2016 to September 30, 2016)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)First half of the fiscal
year ending March 31,
2017First half of the fiscal
year ended March 31,
2016

Operating income

Operating profit

Ordinary profit

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

(%)

1,551

19.7

1,014

9.5

989

24.1

951

16.3

1,295

–

926

–

797

–

817

–

Net income per share(¥)
First half of the fiscal
year ending March 31,
28.31
2017
First half of the fiscal
28.13
year ended March 31,
2016(Note) As the Company was established on October 1, 2014, percentage changes from the first half of the previous year for the first halfof the fiscal year ended March 31, 2016 are not provided.

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

Total net assets(¥ million)

Net assets tototal assets ratio(%)

September 30, 2016
195,886
195,749
99.8
March 31, 2016
141,996
136,903
96.3(Reference) Equity: September 30, 2016: ¥195,653 million
March 31, 2016: ¥136,856 million(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year subtracted from net assets, and the “Net assets to total
assets ratio” is calculated by dividing equity by total assets at the end of the fiscal year. Note that this “Net assets to total assets ratio” is
not the net assets to total assets ratio required for the Capital Adequacy Ratio Notification.

* Indication regarding execution of audit proceduresThis financial report is exempt from the audit procedures pursuant to the Financial Instruments and Exchange Law. At the time of
disclosure of this financial report, the audit procedures for the Consolidated Interim Financial Statements and Non-consolidated
Interim Financial Statements pursuant to the Financial Instruments and Exchange Law are incomplete.
* Disclaimer and special note for referring to the forecast of operating performance
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 andNon-consolidated Financial Statements for the first-half accounting period.
2. Forward-looking statements concerning financial forecasts contained in these materials are based on information available when
the forecasts were made and certain assumptions judged to be reasonable. However, the Company makes no guarantee that these
forecasts will be achieved, and actual results may differ significantly from 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 (¥)
First quarter

Second quarter

Third quarter

Fiscal year-end

AnnualFiscal year ended March 31, 2016

–

–

–

–

–

Fiscal year ending March 31, 2017

–

69.44

Fiscal year ending March 31, 2017–127.64
197.08(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Because first series Class I preferred shares were issued on June 24, 2016, no information is provided for the fiscal year ended
March 31, 2016.
3. Amount paid per share: ¥20,000
4. Computation used to calculate dividend per share(1) Computation
Dividend in first fiscal year = amount paid per share × annual dividend rate × 281 ÷ 365(2) 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)(3) Japanese yen TIBOROn April 1, 2016, the Japanese yen TIBOR (12-month maturity) = 0.18364%(4) Shares issued
750,000(Class II preferred shares)
Dividend per share (¥)
First quarter

Second quarter

Third quarter

Fiscal year-end

Annual–––Fiscal year ended March 31, 2016––

Fiscal year ending March 31, 2017–18.364

Fiscal year ending March 31, 2017–18.36436.728(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Because Class II preferred shares were issued on April 1, 2016, no information is provided for the fiscal year ended March 31,
2016.
3. Amount paid per share: ¥20,000
4. Computation used to calculate dividend per share(1) Computation
Dividend = amount paid per share × annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%
(3) Japanese yen TIBOROn April 1, 2016, the Japanese yen TIBOR (12-month maturity) = 0.18364%(4) Shares issued
2,000,000

Attached Materials
Index
1. Qualitative Information Regarding Consolidated Results for the Six Months Ended September 30, 2016
(1)

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

2(2)

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

2(3)

Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking(4)Statements ································································································

2

Status of Important Business Contracts, etc. ·························································

2

2. Matters Regarding Summary Information (Notes)(1)

Changes in Significant Subsidiaries During the Six Months under Review ······················(2)

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements of(3)

3

Prior Period Financial Statements After Error Corrections ··········································

3

Additional Information ·················································································

3

3. Consolidated Interim Financial Statements(1)

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

Consolidated Interim Statements of Income and Consolidated Interim Statements of

4

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

5

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

6(3)

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

7-8

(4)

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

8(5)

Related to Business Combinations, etc. ······························································

9(Reference) Trust asset balance table ········································································

10

4. Non-consolidated Interim Financial Statements(1)

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

11

(2)

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

12

(3)

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

13

(4)

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

13

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

Overview of Non-consolidated Financial Statements (The Tokyo Tomin Bank, Limited) ···· 14-16(2)

Overview of Non-consolidated Financial Statements (The Yachiyo Bank, Limited) ··············· 17-19(3)

Overview of Non-consolidated Financial Statements (ShinGinko Tokyo, Limited) ················ 20-22(Appendix)

Financial Results for the First Half of the Fiscal Year Ending March 31, 2017
- Supplementary Information-

1

1. Qualitative Information Regarding Consolidated Results for the Six Months Ended September 30, 2016
(1) Operating Results
The Company made ShinGinko Tokyo, Limited (hereinafter referred to as “ShinGinko Tokyo”) into a
subsidiary on April 1, 2016 through business integration using the method of share exchanges. The
Group will fully leverage its advantage of having the largest branch network in Tokyo of any regional
financial institution. This network includes 124 branches in the Tokyo Metropolis and over 160 branches
in the Tokyo metropolitan area, and further enhances the financial platform service “Club TY” throughjoint measures with the Tokyo Metropolis and related organizations in order to support the various needsof small and medium-sized enterprises and individuals in the Tokyo metropolitan area.
Looking back at the Japanese economy during the current interim accounting period (April 1, 2016 to
September 30, 2016), while there was a continuation of the trend towards a gentle recovery that was
backed by high levels of corporate earning, which are beginning to come to a standstill, andimprovements in the employment and income environment, there was some weakness in personal
consumption due to factors such as the high yen and abnormal weather. In the Tokyo metropolitan area,
where the Group has its principal operational base, a continuing recovery trend was backed by
expectations of a boost in the economy triggered by public investments accompanying the government’s
economic policies and stimulated demand in anticipation of the hosting of the 2020 Tokyo Olympics andParalympics. On the other hand, uncertainty about the future outlook continued as a result of factors,
including signs of a slight slowdown in inbound demand coupled with concerns about the impact of adownturn in the economies of emerging countries and commodity-exporting countries, the Brexit issue inEurope, and fluctuations in overseas economies and capital and financial markets.
In this environment, consolidated operating results for the six months ended September 30, 2016
totaled ¥40.8 billion, rising ¥1 billion year on year. Ordinary expenses rose by ¥2.7 billion over theprevious year to ¥35.8 billion, resulting in an ordinary profit of ¥4.9 billion, down ¥1.7 billion year on
year. Furthermore, as a result of a gain on bargain purchase of ¥19.4 billion due to the businessintegration with ShinGinko Tokyo, which was recorded under extraordinary income, profit attributable toowners of parent grew by ¥18.7 billion compared to the previous consolidated fiscal year to ¥23.5 billion.
(2) Financial Position
As of September 30, 2016, total assets amounted to ¥5,581.2 billion, up ¥468.6 billion from the endof the previous fiscal year, and net assets stood at ¥282.3 billion, a ¥79.1 billion increase from the end of
the previous fiscal year.
With respect to major account balances, deposits increased ¥268.5 billion from the end of theprevious fiscal year to ¥4,770.7 billion, and loans and bills discounted increased ¥248.8 billion from theend of the previous fiscal year to ¥3,608.7 billion, while securities increased ¥ 134.0 billion to ¥1,344.1
billion.
(3) Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking
Statements
There are no changes from the consolidated operating performance forecast for the fiscal year ending
March 31, 2017, announced on May 13, 2016.
(4) Status of Important Business Contracts, etc.
(Merger of bank subsidiaries and change of trade name)
The Company, as well as The Tokyo Tomin Bank, Limited (hereinafter referred to as “Tokyo Tomin
Bank”), The Yachiyo Bank, Limited (hereinafter referred to as “Yachiyo Bank”), and ShinGinko Tokyo,
under the premise of the acquisition of the approval of the relevant authorities, etc., passed a resolution
regarding the merger of the Company’s wholly-owned subsidiary Tokyo Tomin Bank, along with
Yachiyo Bank and ShinGinko Tokyo (new trade name: Kiraboshi Bank, Ltd.).
In addition, in association with the change of trade names caused by the trilateral merger, with theobjective of ensuring unified trade names throughout the group, under the premise that a resolution tochange the Articles of Incorporation (change of trade name) is passed at the general meeting ofshareholders, the Company has passed a resolution to change the trade name (new trade name: Tokyo
Kiraboshi Financial Group, Inc.).
Note that this merger of bank subsidiaries and change of trade name are scheduled for May 1, 2018.
2

2. Matters Regarding Summary Information (Notes)(1) Changes in Significant Subsidiaries During the Six Months under Review
Because a business integration was conducted on April 1, 2016 through a share exchange with theCompany as the wholly owning parent company and ShinGinko Tokyo as the wholly owned subsidiarycompany, ShinGinko Tokyo has been included within the scope of consolidation from the current interim
accounting period.
Note that while it did not constitute a change in significant subsidiaries, Sky Ocean AssetManagement Co., Ltd., was included within the scope of equity method affiliates through a newinvestment from the current interim accounting period.
(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements of Prior
Period Financial Statements After Error Corrections(Application of the Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Accompanying a change in the Corporation Tax Act, the Practical Solution on a Change inDepreciation Method Due to Tax Reform 2016 (ASBJ Practical Issues Task Force No. 32, issued June 17,2016) has been applied to the current interim accounting period, and the depreciation method forbuilding-attached facilities and structures acquired from April 1, 2016 have been changed from afixed-rate method to a straight-line method.
Note that this change has not caused a material impact on ordinary profit or profit before income
taxes for the current interim accounting period.
(3) Additional Information
The Implementation Guidance on Recoverability of Deferred Tax Assets (Corporate AccountingStandards Guidance, March 28, 2016) has been applied from the current interim accounting period.

33. Consolidated Interim Financial Statements(1) Consolidated Interim Balance Sheets(¥ million)
As of March 31, 2016
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
Deferred assets
Net defined benefit assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under securities lending transactions
Borrowed money
Foreign exchanges
Bonds payable
Bonds with subscription rights to shares
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 contingent loss
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
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

4

As of September 30, 2016

405,539
43,6004,202
658
1,210,097
3,359,919
6,531
29,25853,217
2,039
56
8,647
7,035
5,860
(24,122)
5,112,540

477,098
24,86035,646723
1,344,157
3,608,792
5,721
28,37655,884
2,010
96
9,987
8,360
9,015
(29,532)
5,581,200

4,502,192
34,206－
293,327
7,425
68
16,0005,000
35,803
2,038
5,530
85
53
14
988
659
55
14
5,860
4,909,324

4,770,769
28,3165,000
325,979
93,353962
16,000－37,464
2,259
5,412
97
56
13
1,031
667
2,395
14
9,015
5,298,812

20,00099,58580,913(594)
199,905
8,390
6
(209)
11
(5,221)
2,977
46
286
203,216
5,112,540

27,500150,806
103,607(597)
281,315
5,996
10
(209)
4
(5,082)
719
95
257
282,388
5,581,200

(2) Consolidated Interim Statements of Income and Consolidated Interim Statements of Comprehensive
Income(Consolidated Interim Statements of Income)(¥ million)
First half of the fiscal year ended First half of the fiscal year ending
March 31, 2016
March 31, 2017
Total income taxes
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
Gain on bargain purchase
Extraordinary losses
Loss on disposal of non-current assets
Profit before income taxes
Income tax – current
Income tax – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

39,791
28,315
23,135
4,638
－
8,008
2,283
1,184
33,093
1,819
1,132
1,463
75
27,865
1,869
6,697
258
258
－
87
87
6,869
1,365
701
2,067
4,801
11
4,790

5

40,81629,23623,284
5,296
20
7,995
2,761
803
35,851
1,882
1,142
1,417
511
30,236
1,803
4,964
19,443019,44397
97
24,311
989
(268)
721
23,59025
23,565

(Consolidated Interim Statements of Comprehensive Income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
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, 2016
March 31, 2017
4,801
23,590(1,657)(2,258)(1,629)(2,464)
3
3
0
－
(1)
(6)
14
139
(44)
70
3,144
21,332
3,132
12Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6

21,30625

(3) Consolidated Interim Statements of Changes in Net Assets(First half of the fiscal year ended March 31, 2016)(¥ million)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

20,00099,60773,245

Balance at beginning of the year

Total shareholders’equityTreasury stock(544)

192,308

Changes of items during the reporting period
Dividends of surplus

(872)

(872)

Profit attributable to owners of parent

4,790

4,790

Acquisition of treasury stock0

Disposition of treasury stock

(27)

(27)

1

1

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

0

3,918

(25)

3,892

20,00099,607

77,163(570)

196,200

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

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-for-salehedgessecurities

Balance at beginning of the year

9,784

2

Revaluation Foreign currency Remeasurements Total accumulated
othertranslationof definedreserve forcomprehensive
adjustment
benefit plansincome
land
(210)

17

432

10,026

NonSubscription
controllingrights tointerests
sharesTotal net
assets－

202,580

245

Changes of items during the reporting period
Dividends of surplus(872)

Profit attributable to owners of parent

4,790

Acquisition of treasury stock(27)

Disposition of treasury stock

1

Net changes of items other than shareholders’equity during the reporting period(1,674)

3

0

(1)

14

(1,658)46(10)(1,621)

Total changes of items during the reporting period(1,674)

3

0

(1)

14

(1,658)

46

(10)

2,270

Balance at end of period

8,109

5

(210)

15

447

8,368

46

235

204,850

7

(First half of the fiscal year ending March 31, 2017)(¥ million)
Shareholders’ equity
Common stock

Capital surplus

Retained earnings

20,00099,58580,913

Balance at beginning of the year

Total shareholders’equityTreasury stock(594)

199,905

Changes of items during the reporting period
7,500

Issuance of new shares
Increase (decrease) by share exchanges

7,500

15,00043,71943,719
(871)

(871)

23,56523,565

Dividends of surplus
Profit attributable to owners of parent
Acquisition of treasury stock0

Disposition of treasury stock

(12)

(12)

9

10

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

7,500

51,22022,693(3)

81,410

Balance at end of period

27,500150,806

103,607(597)

281,315

Accumulated other comprehensive income
Valuation
Deferred gains
difference onor losses onavailable-for-salehedgessecurities

Balance at beginning of the year

8,390

6

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

11

(5,221)

2,977

Subscription
Nonrights tocontrollingsharesinterests
46

286

Total net
assets203,216

Changes of items during the reporting period
Issuance of new shares

15,000

Increase (decrease) by share exchanges

43,719Dividends of surplus(871)

Profit attributable to owners of parent

23,565Acquisition of treasury stock(12)

Disposition of treasury stock10

Net changes of items other than shareholders’equity during the reporting period(2,394)

3

－

(6)

139

(2,258)49(29)(2,238)

Total changes of items during the reporting period(2,394)

3

－

(6)

139

(2,258)49(29)

79,172

Balance at end of period

5,996

10

(209)

4

(5,082)

719

95

257

282,388(4) Notes on Premise of Going Concern
Not applicable.

8(5) Related to Business Combinations, etc.
1. Summary of business combination through acquisition(1) Name, nature, and scale of business of acquired company
Name of acquired company
ShinGinko Tokyo, Limited
Nature of businessBanking
Capital¥20,000 million(2) Reason for conducting business combination
The Company and ShinGinko Tokyo have both utilized their respective strengths as regional
financial institutions in the Tokyo metropolitan area to facilitate local financing and contribute to
the development of regional economies. However, both companies share the same management
goal of supporting small and medium-sized enterprises, and business integration will enable thetwo companies to truly perform their role as regional financial institutions in the Tokyo
metropolitan area, and can also be expected to generate synergistic effects, for which reasons we
implemented the business integration.
(3) Date of business combination
April 1, 2016(4) Legal form of the business combination
Share exchange(5) Name of company after combination
No change in name of the company after combination(6) Ratio of voting rights acquired
100%(7) Grounds for determining acquiring company
As a result of a comprehensive assessment of the determining factors laid out in the AccountingStandard for Business Combinations and other factors, it was determined that the Company shouldbe the acquiring company.
2. Period of results for acquired company included in the consolidated statements of income forcurrent interim accounting period(April 1, 2016 to September 30, 2016)
3. Breakdown of acquisition cost of the acquired company and type of consideration
Consideration for acquisition: Common stock of the Company allotted on date of business combination¥3,719 million

Preferred stock of the Company allotted on date of business combination¥40,000 million

Acquisition cost

¥43,719 million

4. Share exchange ratio by class of shares, method of calculation, and number of shares allotted(1) Share exchange ratio by class of shares
1. 0.24 shares of the Company’s common stock for every 1 share of ShinGinko Tokyo’s common
stock
2. 1 share of ShinGinko Tokyo’s preferred stock for every 1 share of the Company’s preferredstock(2) Share exchange ratio calculation
Multiple financial advisors were requested to calculate the share exchange ratio as third-party
appraisers, and the calculation was decided by discussion among the involved parties withreference to these reports.
(3) Number of shares allotted
Common stock 1,422,289 shares
Preferred stock 2,000,000 shares

95. Contents and amount of major acquisition related expenses
Compensation, commissions, etc. for advisory services¥144 million
6. Amount and cause of gain on bargain purchase(1) Amount of gain on bargain purchase¥19,443 million(2) Causes of gain
Because the acquisition price was less than the net amount allocated to the assets received
and the liabilities assumed, the difference was recognized as a gain on bargain purchase.
7. Amount and breakdown of the assets received and the liabilities assumed on the businesscombination date(1) Amount of assets
Total assets¥463,533 million
Of which, loans¥222,587 million
Of which, securities¥175,000 million
Of which, reserve for possible loan losses(¥5,976 million)(2) Amount of liabilities
Total liabilities¥400,370 million
Of which, deposits¥293,445 million(Reference)
Trust asset balance table(As of September 30, 2016)(Millions of yen)
Asset

Value

Liability

Monetary claims

8,672

Other monetary claims

8,672

Cash deposits

23

Deposits

23
Total

Monetary claims in trust

Total

8,695

(Notes) There is one applicable consolidated subsidiary, namely ShinGinko Tokyo.

10

Value
8,695

8,695

4. Non-consolidated Interim Financial Statements(1) Non-consolidated Interim Balance Sheets(¥ million)

As of March 31, 2016
AssetsCurrent assets
Cash and due from banks
Accounts receivable – otherPrepaid expenses
Income taxes receivable
Suspense payments
Deferred tax assets
Total current assets
Non-current assets
Investments and other assets
Shares of subsidiaries and associates
Loans receivable from subsidiaries and associates

Total investments and other assets
Total non-current assets
Deferred assets
Organization expenses
Share issuance cost
Total deferred assets
Total assets
Liabilities
Current liabilities
Accounts payable – otherAccrued expenses
Dividends payable
Income taxes payable
Deposits received
Suspense receipt
Reserve for employee bonuses
Total current liabilities
Non-current liabilities
Bonds with subscription rights to shares
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Subscription rights to shares
Total net assets
Total liabilities and net assets

11

As of September 30, 2016

1,702
25
1
355
－
10
2,095

1,869
49
42
140
0
18
2,121

134,845
5,000
139,845
139,845

193,668－
193,668
193,66850
5
56
141,9964254
96
195,886

7
0
13
29
11
0
31
93

23
4
19
29
11
0
48
137

5,000
5,000
5,093

－
－
137

20,00027,5005,000
110,277
115,277

56,219110,277
166,497

2,174
2,174
(594)
136,856
46
136,903
141,996

2,254
2,254
(597)
195,653
95
195,749
195,886

(2) Non-consolidated Interim Statements of Income(¥ million)
First half of the fiscal year ended First half of the fiscal year ending
March 31, 2016
March 31, 2017
Operating income
Dividends from subsidiaries and associates
Commissions from subsidiaries and associates
Total operating income
Operating expenses
Selling, general and administrative expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Amortization of deferred organization expenses
Amortization of share issuance cost
Total non-operating expenses
Ordinary profit
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income

12

893
402
1,295

954
597
1,551

369
369
926

537
537
1,014

53
0
54

53
0
54

53
120
7
1
183
797
797
2
(23)
(20)
817

53
11
7
6
79
989
989
46
(8)
37
951

(3) Non-consolidated Interim Statements of Changes in Net Assets(First half of the fiscal year ended March 31, 2016)(¥ million)
Shareholders’ equity
Capital surplus

Retained earnings

Subscription
rights tosharesTotal net
assets-136,689

Total
retainedearnings

Treasury
stock

Total
shareholders’equity

1,957

1,957

(544)

136,689

Dividends of surplus

(872)

(872)

(872)

(872)

Net income

817

817

817

817

(27)

(27)

(27)

1

1

1

Commonstock

Balance at beginning of the year

20,000

Other retained
earnings

Capitalreserve

Other
capitalsurplusTotal
capitalsurplus5,000

110,276

115,276

Retained earnings
brought forward

Changes of items during the reporting
periodAcquisition of treasury stock0

Disposition of treasury stock0

Net changes of items other thanshareholders’ equity during thereporting period

Total changes of items during thereporting period
Balance at end of period

46

46

-

-

0

0

(54)

(54)

(25)

(79)

46

(33)

20,0005,000

110,277

115,277

1,902

1,902

(570)

136,60946

136,656(First half of the fiscal year ending March 31, 2017)(¥ million)
Shareholders’ equity
Capital surplus
Commonstock

Balance at beginning of the year

Retained earnings
Other retained
earnings

Treasury
stock

Total
shareholders’equity(594)

136,856

Subscription
rights tosharesTotal net
assets46

136,903

Capitalreserve

Other
capitalsurplusTotal
capitalsurplus

20,0005,000

110,277

115,277

7,500

7,500

7,500

15,00015,00043,71943,71943,71943,719Retained earnings
brought forward

2,174

Total
retainedearnings
2,174

Changes of items during the reporting
periodIssuance of new shares
Increase (decrease) by shareexchenges
Dividends of surplus

(871)

(871)

(871)

(871)

Net income

951

951

951

951

(12)

(12)

(12)

9

10

10

Acquisition of treasury stock0

Disposition of treasury stock0

Net changes of items other thanshareholders’ equity during thereporting period

Total changes of items during thereporting period

7,500

51,219051,220

80

80

(3)

Balance at end of period

27,50056,219110,277

166,497

2,254

2,254

(597)

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

13

49

49

58,79749

58,846

195,653

95

195,749

5. (Reference) Overview of Major Consolidated Subsidiary Operating Performance(1) Overview of Non-consolidated Financial Statements (The Tokyo Tomin Bank, Limited)
November 11, 2016
Company name： The Tokyo Tomin Bank, Limited
Representative: Takashi Sakamoto, President
Responsible person for inquiries: Masahiro Ogura, General Manager of Corporate Planning Division and
Joint General Manager of Financial Office
URL: http://www.tominbank.co.jp
Telephone: +81-3-3582-8251
Note: 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, 2017

(From April 1, 2016 to September 30, 2016)(1) Results in non-consolidated operations (cumulative)(Percentages represent year-on-year changes.)
Ordinary income

First half of the fiscal year ending
March 31, 2017
First half of the fiscal year ended
March 31, 2016

Ordinary profit

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

21,606

0.7

3,866

5.5

3,220

16.2

21,452

(5.6)

3,661

(6.4)

2,771

8.2

(2) Non-consolidated financial position

September 30, 2016

Total assets(¥ million)

Total net assets(¥ million)

2,783,321

107,3543.8

2,791,960

90,491

3.2

Net assets to total assets ratio(%)

March 31, 2016
(Reference) Equity: September 30, 2016: ¥107,354 million
March 31, 2016: ¥90,491 million(Note) “Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculated by dividing
equity by total assets at the end of the period. Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio
required for the Capital Adequacy Ratio Notification.

14

○ Non-consolidated Interim Financial Statements(1) Non-consolidated Interim Balance Sheets
The Tokyo Tomin Bank, Limited(¥ million)
As of March 31, 2016
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
Bonds payable
Other liabilities
Reserve for employee bonuses
Reserve for directors’ retirement benefits
Reserve for point card certificates
Reserve for loss on dormant deposit repayments
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

15

As of September 30, 2016

295,2354,497
0
31
586,946
1,842,130
3,406
17,051
32,574
1,116
14,316
4,194
2,926(12,466)
2,791,960

293,5001,860
0
26
575,746
1,849,852
2,517
12,81934,7491,054
15,511
4,017
4,077(12,412)2,783,321

2,390,437
32,706474
236,597
7,225
65
16,00013,212
1,079
60
2
374
291
14
2,926
2,701,469

2,349,454
23,7401,194
258,264
5,253
962
16,00015,145
1,082
67
2
416
290
14
4,077
2,675,967

48,12018,08318,65584,859
5,840
(209)
5,631
90,491
2,791,960

55,62025,583
21,480102,683
4,879
(209)
4,670
107,354
2,783,321

(2) Non-consolidated Interim Statements of Income
The Tokyo Tomin Bank, Limited

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
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 liquidation of subsidiaries
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, 2016
March 31, 2017
21,452
21,606
15,597
15,97812,45011,505
2,926
4,255
4,184
4,094
1,075
1,038
595
496
17,79017,740
1,153
983
544
323
1,282
1,143
15
17
14,234
14,658
1,104
936
3,661
3,866
252
－
252
－
76
19
76
19
3,836
3,847
89
27
975
599
1,065
626
2,771
3,220

16

(2) Overview of Non-consolidated Financial Statements (The Yachiyo Bank, Limited)
November 11, 2016
Company name: The Yachiyo Bank, Limited
Representative: Hirokazu Tahara, President
Responsible person for inquiries: Hiroshi Shibuya, Executive Officer, General Manager of Corporate
Planning Division
URL: http://www.yachiyobank.co.jp
Telephone: +81-3-3352-2295
Note: 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, 2017

(From April 1, 2016 to September 30, 2016)(1) Results in non-consolidated operations (cumulative)(Percentages represent year-on-year changes.)
Ordinary income

First half of the fiscal year ending
March 31, 2017
First half of the fiscal year ended
March 31, 2016

Ordinary profit

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

18,6800.8

3,086(12.8)

2,909

16.8

18,529(10.3)

3,541(26.7)

2,489(27.8)(2) Non-consolidated financial position

September 30, 2016

Total assets(¥ million)

Total net assets(¥ million)

Net assets to total assets ratio(%)

2,343,756

110,200

4.7

2,324,249
109,626
4.7
March 31, 2016
(Reference) Equity: September 30, 2016: ¥110,200 million
March 31, 2016: ¥109,626 million(Note) “Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculated by dividing
equity by total assets at the end of the period. Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio
required for the Capital Adequacy Ratio Notification.

17

○ Non-consolidated Interim Financial Statements(1) Non-consolidated Interim Balance Sheets
The Yachiyo Bank, Limited(¥ million)
As of March 31, 2016
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
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit

Payables under securities lending transactions
Borrowed money
Foreign exchanges
Other liabilities
Reserve for employee bonuses
Reserve for retirement benefits
Reserve for loss on dormant deposit repayments
Provision for contingent loss
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities

As of September 30, 2016

110,233
39,5774,202
627
613,955
1,517,513
3,124
8,302
29,368
786
3,359
2,934
(9,736)2,324,249

158,001
24,193
2,977
696
588,592
1,526,273
3,204
11,141
29,834
635
4,732
2,910
(9,436)
2,343,756

2,124,520
5,630
56,7305,000
212,687
844
2,810
614
367
2,481
2,934
2,214,623

2,136,384
8,706
67,714－0
10,766
910
2,713
614
352
2,481
2,910
2,233,555

43,73432,922
27,540104,197
4,819
(7)
616
5,428
109,626
2,324,249

43,73432,92230,053
106,710
2,877
(4)
616
3,489
110,200
2,343,756

Net Assets
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

18

(2) Non-consolidated Interim Statements of Income
The Yachiyo Bank, Limited

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
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, 2016
March 31, 201718,52918,68013,96013,895
10,66010,053
2,973
3,608
3,015
3,009
1,095
1,546
457
228
14,98815,594
664
480
588
412
714
670
－
431
12,95913,004
649
1,008
3,541
3,086
162
0
162
0
33
78
33
78
3,669
3,007
1,015
682
164
(585)
1,179
97
2,489
2,909

19

(3) Overview of Non-consolidated Financial Statements (ShinGinko Tokyo, Limited)
November 11, 2016
Company name: ShinGinko Tokyo, Limited
Representative: Hidenori Tsunehisa, President and CEO
Responsible person for inquiries: Toshikazu Tanaka, Director and Executive Officer
URL: https://www.sgt.jp/
Telephone: +81-3-6302-3471
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, 2017

(From April 1, 2016 to September 30, 2016)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)
Ordinary income

First half of the fiscal year ending
March 31, 2017
First half of the fiscal year ended
March 31, 2016

Ordinary profit

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

(%)

3,557

2.7

741

6.2

626

(10.0)

3,462

(6.3)

698

(12.9)

696(13.0)(2) Non-consolidated financial position

September 30, 2016

Total assets(¥ million)

Total net assets(¥ million)

466,165

61,84513.2

458,925

60,055

13.0

Net assets to total assets ratio(%)

March 31, 2016
(Reference) Equity: September 30, 2016: ¥61,845 million
March 31, 2016: ¥60,055 million(Note) “Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculated by dividing
equity by total assets at the end of the period. Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio
required for the Capital Adequacy Ratio Notification.

20

○ Non-consolidated Interim Financial Statements(1) Non-consolidated Interim Balance Sheets
ShinGinko Tokyo, Limited(¥ million)
As of March 31, 2016
AssetsCash and due from banks
Other debt purchased
Securities
Loans and bills discounted
Other assets
Tangible fixed assets
Intangible fixed assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Reversal for allowance for possible loans
Total assets
Liabilities
Deposits
Call money
Borrowed money
Other liabilities
Reserve for employee bonuses
Reserve for directors' bonuses
Reserve for retirement benefits
Provision for contingent loss
Deferred tax liabilities
Acceptances and guarantees
Total liabilities
Net Assets
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

As of September 30, 2016

35,18831,727
172,355
222,587
786
39
265
2,215
(5,976)(264)458,925

35,532
32,668
168,676
232,248
686
35
221
2,028
(5,934)
466,165

293,445
100,000
2,001
137
7
138
21
903
2,215
398,870

305,762
5,000
87,900
1,751
138
0
149
24
1,564
2,028
404,320

20,00032,046
5,407
57,4542,600
2,600
60,055458,925

20,00032,046
5,872
57,9193,925
3,925
61,845466,165(Note) “Deferred tax assets” and “deferred tax liabilities” that were presented separately during the previous fiscal year will bepresented after offsetting from the current interim accounting period. As a result of this change in the presentation method, the¥244 million in deferred tax assets and ¥1,147 million in deferred tax liabilities that were presented in the balance sheets forthe previous fiscal year will be reclassified and presented as ¥903 million in deferred tax liabilities.

21

(2) Non-consolidated Interim Statements of Income
ShinGinko Tokyo, 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
Interest expenses
Interest on deposits
Fees and commissions payments
General and administrative expenses
Other ordinary expenses
Ordinary profit
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, 2016
March 31, 2017
3,462
3,557
3,191
3,122
1,677
1,713
1,235
1,133
26
20
127
94
－
52
116
267
2,763
2,815
488
425
436
408
73
68
1,964
2,056
236
265
698
741
698
741
2
39
－
75
2
114
696
626

22