2017

HOKUETSUBANK
ANNUAL REPORT
April 1, 2016 - March 31, 2017

■Contents• About Hokuetsu Bank����������� 1• Financial Performance Highlights������ 2• Management System����������� 3• Corporate Governance���������� 3• Risk Management Structure�������� 5• Management Condition of Each Risk���� 6• Compliance��������������� 8• Overview of Consolidated Settlement���� 9• Overview of Non-consolidated Settlement� 16• Corporate Data������������� 19• Subsidiaries�������������� 20

About Hokuetsu Bank
Since starting operations in December 1878, The Hokuetsu Bank, Ltd. has been operating with the support of customers fromthe local communities, with Niigata Prefecture as its main operating base.

Port of Niigata Niigata Airport

Hokuriku Expressway

Port of Naoetsu

Niigata City

Ban-Etsu Expressway

Nagaoka City

JoetsuShinkansen

Joshin-Etsu
Expressway

Takasaki/
Maebashi

Kan-Etsu Expressway

SaitamaTokyo

Characteristics of Niigata Prefecture

Niigata Prefecture is located at the center of the coast of the Sea of Japan and has the fifth largest land area among the prefectures in Japan spanning 12,584 km2, which is home to a population of about 2.3 million.
In terms of industries, agriculture is thriving in Niigata Prefecture, boasting the largest output of rice in Japan, while a variety ofcommerce and industries including Western metal tableware, kerosene heaters and rice crackers have also been gathering in theprefecture.
With such domestic traffic networks as Shinkansen lines and expressway networks, as well as an international airport and aninternational trading port, Niigata Prefecture has geographical conditions which make it an excellent base in the Northeast Asian
region.

Corporate Philosophy

MissionThe Hokuetsu Bank, Ltd. will extensively provide financial services, gain the trust of its customers and fulfill its role of contributing
to the development of local communities.

Overview of the BankName:
The Hokuetsu Bank, Ltd.
Location of the Head Office: 2-14, Otedori 2-chome, Nagaoka City, Niigata 940-8650
December 20, 1878
Date of Foundation:
2,726,621 million yen
Total Assets:
24,538 million yen
Paid-in Capital:
84 (79 in Niigata Prefecture; five outside the prefecture)
Number of Branches:
Number of Employees:
1,486 (including 59 seconded employees)(as of March 31, 2017)

Disclaimer Concerning the Proper Use of These Materials
These materials contain statements on future business results.
Such statements do not guarantee the future business results, and involve risks and uncertainties. They may vary from theplans or forecasted figures due to changes in business conditions and other factors.

1

Financial Performance Highlights
Consolidated Basis(Unit: Million yen, %)Thousand U.S.
dollars

Year ended March 31

2013

2014

2015

2016

2017

Ordinary income

48,94051,41357,01357,81848,206$429,681

Ordinary profit

10,477

9,242

11,896

13,099

9,149$81,549

Net income attributable to stockholders of parent company

5,854

4,838

6,438

7,766

6,709

$59,800

Comprehensive income

13,0202,209

22,106

7,283

(645)

$(5,749)

Total net assets

95,846

93,125

113,562

118,021

115,972$1,033,710

Total assets

2,363,447

2,495,717

2,616,867

2,704,868

2,729,171$24,326,330

Capital adequacy ratio(based on Japanese domestic standards,Basel III)—11.02%

9.09%

9.01%

8.99%

8.99%

Capital adequacy ratio(based on Japanese domestic standards,Basel II)

11.39%

—

—

—

—

—

(Note) With the application of standards such as the “Revised Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, September 13, 2013), “Consolidated net income” has been changed to “Net income attributable to stockholders of parent company.”

Net income attributable to stockholders of parent company

Total assets(¥ million)(¥ million)
3,000,000

7,766

8,000

Capital adequacy ratio(based on Japanese domestic standards, Basel III)2,616,867

2,704,868

2,729,171

(%)
15

6,709

6,438
6,000

2,000,000

10

4,000

1,000,000

50(as of March 31)

2015

2016

2017

0

(as of March 31)

2015

2016

Non-consolidated Basis
Deposits

Loans and bills discounted(¥ million)
3,000,000(¥ million)
2,000,000

Year ended March 31
2,220,376
Ordinary income

2,288,767

2013

2,362,850
1,500,000

2,000,000

Ordinary profit
Net income

Deposits
8,000

2015

2016

7,766

Dividend payout ratio(Unit:
Million yen, Thousand shares, %, persons)(¥ million)
1,200,000

2015
1,545,998
51,6402016
900,000
52,315

Thousand U.S.
2017994,923
942,841
936,303 dollars
42,562$379,374

12,109

8,326

7,332
600,000

6,707$59,782

24,53824,53824,53824,53824,538$218,718

247,142

245,142

245,142

245,142300,000

24,51424,514

90,63890,151

107,387

114,168

111,631$995,017

2,355,899
Total 0assets

2,489,268

2,610,936

2016

2,220,376
2,729,171
1,472,673(%)
2,288,767
15

2,362,850

1,515,019

1,545,998

942,841

936,30310

2015
3,000,0002,146,143(as of) March 31)(¥ million

2,164,734
2,704,868
2,616,8671,423,505
1,386,722

Securities

4,000

Securities

5,901

Loans and bills discounted

6,709
6,438
Capital6,000 adequacy ratio(based on Japanese domestic standards,Basel III)
Capital adequacy ratio(based on Japanese domestic standards,Basel II)

2017

4,467

500,000

2017

2016

5,312

Total net assets(¥ million

2015

10,5711,000,000(as of) March 31)

8.99

8,214

Common stock

Total
assetsNet
incomeattributable to stockholders of parent company
0(as of March 31)

9.01

9,085
1,000,000

Total number of outstanding shares

2014
1,472,673 1,515,019
43,602
46,281

0

2017

9.09

831,4682,000,000

1,000,000

Number of employees

854,354

2017—

10.53%

8.55%

10.94%——

Capital adequacy ratio

2,701,914
2,726,621$24,303,601(based0on Japanese
domestic standards,
Basel III)(as of March 31)

2015

2016

2017

$21,061,146$13,780,176

994,923$8,868,196

8.48%

9.09
8.45%

—

—

—

5

9.01

8.99
8.45%

28.12

32.94

24.76

19.74

21.41

21.41

1,262

1,429

1,444

1,431

1,427

1,427

01.
0employees,
0Notes:The number
employees
include seconded
employees
on a short-term contract, and temporary
employees.
Total
CapitalRatioof(Basel
III) does not2017
CommonEquityTier 1 Ratio(as of March 31)(as of March 31)(as of March 31)
2015
2016
2015
2016
2017
2015
2. The Bank’s common shares were consolidated at the ratio of 1 share for 10 common shares on October 1, 2016.
(%)
20$74,213

2016

2017

(%)
20

Deposits(¥ million)15
3,000,000

14.05

13.69

10

13.21
2,220,376

2,288,767
13.04

14.66

Loans and bills discounted(¥ million)15
2,000,000

13.84
2,362,850
10
1,500,000

Securities

12.90

12.85

13.17

12.24
1,472,673

1,515,019
12.35

1,545,998
12.44(¥ million)
1,200,000

942,841

936,303

2015

2016

994,923900,000

2,000,000
551,000,000

600,000

1,000,00002013(As of March 31)
Consolidated0(as of March 31)

2015

2014

2015

0
500,000

Non-consolidated
2016

2013
(As of March 31)
Consolidated

2017

0

(as of March 31)

2014

2015

300,000

Non-consolidated

2015

2016

2017

0

(as of March 31)

2017

Notes: 1. Yen amounts of less than one million yen are omitted.
2. Amount in U.S. dollar is translated from Japanese yen, solely for convenience, at ¥112.19 = U.S. $1.00, the exchange rate prevailing on March 31, 2017.

2

Management System
Corporate GovernanceThe basic policy of the Bank is to win the trust of customers and regional residents through provision of financial services and make contributions to the development of local communities. In addition, the Bank intends to fulfill its responsibilities for its shareholders and employees by ensuring stable earnings and improving management transparency.
To that end, the Bank will continue to aim at well-balanced management based on proper risk management, whilefurther enhancing management functions for corporate governance in light of the purpose of Japan’s “Corporate Governance Code.”
As companies are highly expected to act in accordance with corporate ethics, the Bank has positioned the reinforcement of compliance as a top-priority management issue and is actively and organizationally applying measures basedon the Bank’s compliance plan.

Status of Business Management Organizations Pertaining to Management Decision-Making,Execution and Supervision and Other Corporate Governance Structures
Details on the Corporate Organs
The Bank has adopted a corporate auditor system and established the Board of Directors, which decides on important management matters and other matters, and the Board of Corporate Auditors, which audits management.
The Board of Directors comprises 13 Directors, including two Outside Directors, (as of June 2017), and holds meetings once a month, in principle, to decide on matters stipulated by laws and regulations, and the Bank’s Articles of Incorporation and on important business execution.
Meanwhile, the Board of Corporate Auditors is composed of four Corporate Auditors, including two Outside Corporate Auditors, (as of June 2017). Each Corporate Auditor attends the Board of Directors’ meetings among other important meetings and conducts audit on the status of business execution and property, performance of duties by Directors
and other matters, pursuant to the audit policy and plan decided by the Board of Corporate Auditors.
Reinforcement of Compliance
The Bank has positioned the reinforcement of compliance as a top-priority management issue and all officers andemployees are carrying out corporate activities fairly and sincerely in accordance with various regulations, including the
Hokuetsu Bank Ethics Charter.
Regarding business operations, important issues are decided by the Board of Directors, while the Legal Affairs Officeof the Risk Control Division, which oversees compliance matters, the operations divisions and legal compliance coordinators in the respective divisions and branches are making thorough efforts for compliance. In addition, the functions tocheck conformity in the performance of duties by officers and employees are maintained through verifications by the audit division, the establishment of systems including a whistle-blowing system and other measures.
Establishment of Risk Management
With regard to the establishment of risk management, basic ideas are clarified in the General Policy on Risk Management, and management subjects and management systems are specified systematically in the General Rules on Risk
Management.
Regarding business operations, the Board of Directors receives reports on the status of material risk managementand decides on basic policies and other necessary matters. Furthermore, the Risk Control Division is designated as thedepartment in control of risk management and the organizations respectively responsible for the management of eachtype of risk are specified, while various committees and organs have been established to cope with individual themes.
These activities are verified by the Audit Division.

3

Proper Business Operation at Each Group Company
Appropriateness of business at each Group company is ensured through the Rules on Affiliated Company Operation
as well as application and mutatis mutandis application of various regulations of the Bank. In addition, audits are performed on each Group company to verify whether its business is properly operated in line with Group management.
Performance of Duties by Directors
The Bank is striving to speed up decision-making of management by establishing the Council of Managing Directors,
which comprises officers with titles who hold posts of Managing Director or higher, as an organ to discuss and decide
on matters entrusted by the Board of Directors.
Information and documents pertaining to the performance of duties by Directors are properly stored and managed(including disposal) in accordance with the Bank’s internal regulations and rules, while the status of their management
and operation is verified and the regulations and rules are reviewed, as necessary.
Maintaining the Functions of Corporate Auditors
Corporate Auditors attend important meetings which include the Board of Directors’ meetings, the Council of Managing Directors, various meetings and committees, and read principal internal approval documents and other important
documents concerning business execution. They can also seek explanations concerning such documents from Directors or employees.
Directors and employees of the Bank and its Group companies provide necessary information pursuant to provisions
stipulated by the laws and regulations and by the Board of Corporate Auditors, and report the status of performance of
their duties and other matters.
Furthermore, to raise the effectiveness of audits, Corporate Auditors exchange opinions and information with Representative Directors as well as endeavor to cooperate with the Audit Division and the accounting auditor.

The corporate governance structure mentioned above is based on the “Basic Policy on Establishment of Internal
Control System,” established by the Bank.
Corporate Governance Structure of the Bank

General Meeting of Shareholders

Corporate Auditors/Boardof Corporate Auditors

Board of Directors(Council of Managing Directors)

Compliance Control(Legal Affairs Office of
Risk Control Division)

Risk Management Control(Risk Control Division)

4

Various Meetings
and Committees

Internal Audit(Audit Division)

Risk Management Structure
While banking operations are becoming more diverse and earnings opportunities are expanding, there have been
more risks than ever before at the same time. In keeping with changes in the financial environment and the rapid progress of financial techniques, increasingly complex and advanced risks have greater impact on bank management.
The Bank fully recognizes the crucially important role of risk management, which is positioned as one of the primarytasks in its management. In accordance with the General Rules on Risk Management, the Bank has implemented a risk
management structure whereby the organizations responsible for the management of individual types of risks are specified and the Risk Control Division oversees the management of these diverse risks to ensure overall risk control.
The Audit Division, which is independent of sales operations and credit-assessment operations, conducts stringent
internal audits of branches and divisions at the head office regarding their overall risk management.

Chart of Risk Management Structure
Corporate Auditors/
Board of Corporate Auditors

Board of Directors

Council of Managing Directors

Management Control of Customer
Protection, etc.
Risk Control Division(Legal Affairs Office)Rules on Management of Customer
Protection, etc.

Compliance Control
Risk Control Division(Legal Affairs Office)Rules on Compliance

Risk Management Control

Crisis Response Control

Risk Control Division(Risk Management Group)
General Rules on Risk Management

General Affairs Division(Disaster Countermeasure Committee)
Basic Rules on Crisis Responses

Compliance ManualBusiness Continuity Planning (BCP)
Capital Adequacy Management
General Planning Division
Rules on Capital Adequacy Management

Asset Liability Management (ALM) Meeting

Credit Risk Management

Market Risk Management

Liquidity Risk Management

Operational Risk Management

Risk Control Division(Credit Risk Management Office)Rules on Credit Risk Management

Risk Control Division(Risk Management Group)
Rules on Market Risk Management

Risk Control Division(Risk Management Group)
Rules on Liquidity Risk Management

Operation Supervision Division(Operation Administration Group)
Rules on Operational Risk Management

Contingency Plan

Administrative Risk
Management
Operation Supervision Division(Operation Management
Department)
Rules on Operation Administrative
Risk Management

System Risk Management

Reputation Risk Management

Legal Risk Management

Human Risk Management

Tangible Asset Risk Management

Operation Supervision Division(System Management
Department)
Rules on System Risk
Management

Risk Control Division(Risk Management Group)
Rules on Reputation
Risk Management

Risk Control Division(Legal Affairs Office)Human Resource Division(Human Resource Group)
Rules on Human Risk
Management

General Affairs Division(Properties Administration Group)
Rules on Tangible Asset Risk
Management

Security Policy

Branches

Head Office

Affiliated Companies

Audit on Branches

Audit on Head Office and Affiliated Companies

Audit on Assets

Audit Division (Branch Audit Group)
Rules on Internal Audit

Audit Division (Internal Audit Group)
Rules on Internal Audit

Audit Division (Internal Audit Group)
Rules on Internal Audit

Audit

5

Management Condition of Each Risk
[1] Capital Adequacy Management
Capital adequacy management involves the use of measures aimed at improving capital adequacy, the evaluation of
the sufficiency of capital adequacy, and the calculation of an accurate capital adequacy ratio.
The Bank’s basic policy includes: [1] maintain an appropriate capital adequacy level to ensure sound management
while allocating management resources efficiently to improve earning power and build a strong management constitution; and [2] ensure a proper response to increasingly diverse customer needs by monitoring changes in the environment of economics and finance while controlling total risks at levels according to the amount of capital.
To calculate an accurate capital adequacy ratio, the Bank also employs a system to ensure that the numbers calculated by related divisions are checked by other divisions. The Internal Audit Group of the Audit Division verifies the appropriateness and accuracy of this calculation process.
[2] Credit Risk Management
Credit risk is a condition in which the value of loans and other assets of a financial institution decrease or are lost due
to the bankruptcies and deteriorating financial conditions of customers, leading to a loss on the part of the financial institution.
The Bank always conducts a loan assessment based on the strict assessment standards before approving any loan,
and it operates on the basic policy of managing its funds on a widely diversified basis without providing excessive loans
to certain customers, in order to enhance the soundness of its assets.
For appropriate risk management corresponding to the degree of credit risk, in addition to the “credit rating” system
based on objective criteria, we also put in place assessment and management structures based on the authorization
system according to credit ratings.
[3] Market Risk Management
Market risk is a two-fold risk. It consists of the risk that the value of assets and liabilities held by a bank fluctuates andresults in a loss due to market fluctuations of interest rates, exchange rates, share prices, etc., and also of a risk that the
profits generated by the assets and liabilities held by the bank will fluctuate and result in a loss.
The Bank’s Market and Capital Division is engaged in the market-capital-related activities. In addition to the segregation of duties between front-office operations and back-office operations, the Risk Management Group of the Risk Control Division is engaged in the management and control of market-related risks to ensure cross-checking.
Furthermore, the BPV (Basis Point Value) and VAR (Value at Risk) approaches are applied to measure market risks,
and the results are reported monthly to the Board of Directors.
[4] Liquidity Risk Management
Liquidity risk refers to the risk that a financial institution becomes unable to secure necessary funds and faces a cash
flow crunch or is forced to procure funds at significantly higher interest rates than normal due to the deterioration of its
financial condition, etc., and eventually generates a loss.
The Market and Capital Division is engaged in daily cash-flow management and administration, while the Risk Management Group of the Risk Control Division monitors liquidity risk management indicators in order to continually clarify
the cash-flow position.
[5] Operational Risk Management
Operational risk is the condition that emerges due to the inappropriateness or non-functioning of any of the Bank’s
operation processes or systems, due to the inappropriate action of any officer or employee of the Bank, or from the occurrence of any external event.
The Bank defines the six operational risks to be managed. They are:[1] administrative risk [2] system risk [3] reputation risk [4] legal risk [5] human risk [6] tangible asset risk
In managing operational risks, the Operation Administration Group of the Operation Supervision Division centrally
identifies and manages all operational risks, while each division subject to operational risks manages the applicable risks
from a more detailed standpoint.

6[6] Administrative Risk Management
Administrative risk is the condition in which an administrative error or inadvertent action by an officer or employee results in a loss to the financial institution.
The Bank’s basic policy is to establish a reliable administrative structure centered on the Operation Supervision Division, with emphasis on the management of administrative risks in order to prevent administrative errors and inadvertent
actions related to administration.
Accordingly, the Bank promotes the streamlining and enhancement of efficiency in administrative operations, thestrengthening of training and provision of on-site guidance to staff at branches, and the review of procedures and establishment of internal regulations and rules.
The Bank, in addition to complying with the Act on the Protection of Personal Information, is vigorously enacting measures to prevent any damage due to criminal acts, such as fraudulent withdrawals using stolen bankbooks and fraudulent bank transfers, which have emerged as significant problems in society.
[7] System Risk Management
System risk is a condition that occurs due to an earthquake, flood or other force majeure; a hardware failure, program
error, fire or other accident; or due to computer crime, a detonation or other willful conduct. In addition to the aforementioned system risks, the risks of unauthorized or illicit disclosure of personal information and trade secrets must be fully
addressed.
The Bank has relocated its mission-critical systems to the Regional Bank Shared Banking Center operated by NTT
Data Corp. in May 2009.
The Center, which employs the cutting-edge, next-generation system “BeSTA,” is one of the country’s largest integrated service centers for regional banks. The Bank is one of 14 institutions that participate in.
The Center also has backup facilities to ensure smooth recovery in the event a natural disaster occurs.
Additionally, the Bank is strengthening its risk management structures based on the review of computer systems
planning and development processes and administrative processes. Moreover, the Bank is implementing measures toprevent fraudulent withdrawals using fake cards and phishing scams, in order to prevent these emerging societal problems from affecting its customers and operations.
[8] Reputation Risk Management
Reputation risk is the risk involving the potential occurrence of a false reputation contrary to reality, such as the dissemination of rumor or innuendo, that could negatively affect a company’s business status.
The Bank is strengthening the management of reputation risks under the basic management policy of acting in atimely and appropriate manner to maintain calm and minimize damage should any reputation risk be generated.
We are stepping up the management of reputation risks through appropriate disclosure, the establishment of systems
for gathering and reporting information on the Bank’s reputation, and the implementation of contingency plans.
[9] Legal Risk Management
Legal risk is the condition in which failure to strictly comply with any law, ordinance, the Bank’s internal regulation orother social norm could result in a loss.
The Bank’s Legal Affairs Office of the Risk Control Division oversees all compliance matters. It implements proper
measures to prevent these risks and thereby reinforce the management of legal risks.
[10] Human Risk Management
Human risk is the condition in which any discriminatory action of the Bank’s officer or employee, such as fraud, crimeor sexual harassment, results in a loss.
The Bank’s Human Resource Group, which is part of the Human Resource Division, implements proper measures toprevent these risks to step up the management of human risks.
[11] Tangible Asset Risk Management
Tangible asset risk is the condition in which any external events, such as natural disasters, stop of social infrastructure
and terrorism or destruction of tangible assets could result in a loss.
The Bank is striving to avoid or reduce these risks by conducting regular inspections and practices for prevention of
accidents and disasters.
7Compliance
Efforts Regarding Legal Compliance
Financial institutions, in view of their responsibilities and roles with respect to the society, are required to maintain corporate cultures incorporating transparency of management and thorough legal compliance.
Based on this understanding, the Bank, in accordance with the Hokuetsu Bank Ethics Charter and its principles established for the purpose of establishing corporate ethics, endeavors to ensure thorough compliance with the laws, regulations and rules. Additionally, the Bank has positioned the reinforcement of compliance as a top-priority management
issue and is actively and organizationally applying measures based on the Bank’s compliance plan.
In the area of organizations and systems, important issues relating to compliance are decided by the Board of Directors, while the Legal Affairs Office of the Risk Control Division, which oversees compliance matters, the operations divisions and legal compliance coordinators in the respective divisions and branches are making thorough efforts forcompliance. The efficiency of these processes is ensured through the audits performed by corporate auditors as well asverifications by the Audit Division, which is responsible for internal controls.
The Legal Affairs Office of the Risk Control Division, in order to enhance the cross-checking function for legal risks,
conducts legal checks of the various documents and contracts used internally. Meanwhile, the twice-monthly Legal
Consultation Meeting is one in which preliminary consultation and advice is sought on legal matters from our corporate
counsel and various measures are examined according to the principles of compliance. If any legal matter requires further examination, a Compliance Conference Meeting is held, with attendance by the head of each relevant division andcorporate counsel, to discuss a proper course of action in compliance with the law.
The Bank is implementing other measures to ensure compliance within the organization, such as the inclusion ofcompliance lectures as part of various seminars, the issuance of “Legal News,” and self-compliance checks conductedby all Bank personnel. Additionally, the Bank hands out its compliance manual to all personnel to make sure each person understands the key points and items to note regarding regulations related to banking operations. These are only a
few examples of how the Bank is working to enhance its compliance system.

Hokuetsu Bank Ethics Charter[1] Sound Management and Establishment of Unwavering Confidence

The Hokuetsu Bank, Ltd. recognizes its social responsibilities and duties as a bank, and will establish unwavering
confidence through sound and efficient business operation.

[2] Provision of High Quality Financial Services

The Hokuetsu Bank, Ltd. will provide high quality services, which fully give considerations to appropriate protectionof interests of customers through the improvement of the security level, ensuring of business continuity at the time ofdisaster and other measures, while satisfying needs of customers by making the most of originality and ingenuity, tosay nothing of its function as infrastructure that supports economic activities.

[3] Strict Compliance with Laws, Regulations and Rules

The Hokuetsu Bank, Ltd. will strictly observe all laws, regulations and rules, performing fair and sincere corporate
activities that are not against social norms.

[4] Fair Disclosure of Information on Management and Other Matters

The Hokuetsu Bank, Ltd. will extensively communicate with society and fairly and properly disclose information on
management and other matters to realize transparent management.

[5] Respect to Human Rights of Employees

The Hokuetsu Bank, Ltd. will respect human rights and individuality of employees, and ensure a safe and pleasant
workplace environment.

[6] Efforts for Environmental Issues

The Hokuetsu Bank, Ltd. will vigorously work on environmental issues by providing financial services that contributeto environmental conservation and through other measures, while efficiently using resources and reducing wastes.

[7] Efforts for Social Contribution Activities

The Hokuetsu Bank, Ltd. realizes that society is the very place where banks can continue to exist and develop, andwill proactively focus on social contribution activities as a “good corporate citizen” that grows together with society.

[8] Cut-off of Relationships with Anti-Social Forces

The Hokuetsu Bank, Ltd. will firmly confront anti-social forces that pose a threat to the order and safety of civil society, and thoroughly cut off relationships with them.

[9] Contributions to Local Communities

The Hokuetsu Bank, Ltd. will deeply have roots in the region and contribute to the development of local communities.
8

Overview of Consolidated Settlement
Consolidated Financial Statements
Consolidated Balance Sheet(Unit: Million yen)

PeriodItem
ASSETSCash and due from banks
Trading account securities
Securities
Loans and bills discounted
Foreign exchange
Lease claims and lease investment assets
Other assets
Tangible fixed assets
Buildings
Land
Lease assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets
SoftwareLease assets
Other 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
Certificates of deposits
Payables under repurchase agreements
Borrowed money
Foreign exchange
Other liabilities
Accrued bonuses
Allowance for bonuses to directors and corporate auditors
Net defined benefit liabilities
Allowance for retirement benefits to directors and corporate
auditors
Reserve for reimbursement of deposits
Reserve for contingencies
Reserve for losses on return of interest
Deferred income taxes
Deferred income taxes for revaluation
Acceptances and guarantees
Total liabilities
NET ASSETS
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Unrealized holding gains (losses) on securities
Deferred gains (losses) on hedges
Unrealized gains from revaluation of land held for use
Remeasurements of defined benefit plans
Accumulated total of other comprehensive income
Stock subscription rights
Non-controlling interests
Total net assets
Total liabilities and net assets

End of previous
consolidated
accounting year
March 31, 2016¥¥

End of current
consolidated
accounting year
March 31, 2017

192,122
1,392
936,105
1,506,699
6,443
10,517
21,93029,444
8,642
19,182
41
249
1,328
869
633
20
214
1,459
298
7,272
(9,685)2,704,868¥¥

End of current
consolidated
accounting year
March 31, 2017
Thousand USD

127,596
1,413
992,777
1,537,161
8,203
11,59418,70529,465
8,729
19,121
21
111
1,482
930
515
11
403
2,320
127
5,907
(7,034)2,729,171$$

1,137,320
12,594
8,849,068
13,701,408
73,117103,342
166,726
262,634
77,805
170,434
187
989
13,209
8,289
4,590
98
3,592
20,6791,132
52,651(62,697)
24,326,330

2,282,090
107,120
124,304
13,050229
42,372836
25
838

2,359,644
106,530
102,54880
332
31,153834
25
563

21,032,569
949,549
914,056
713
2,959
277,680
7,433
222
5,018

7

12

106

¥

551
327
39
4,896
2,884
7,272
2,586,847

¥

643
463
35
1,549
2,876
5,907
2,613,198

$

5,731
4,126
311
13,80625,63552,651
23,292,610¥

24,53819,002
48,196(1,381)90,35535,577(7,894)
2,636(2,844)27,474116
76
118,0212,704,868¥

24,53819,00253,488(1,387)
95,641
21,296(1,422)2,616(2,394)20,095
156
78
115,9722,729,171$

218,718
169,373476,762(12,362)
852,491
189,820(12,674)
23,317(21,338)
179,115
1,390
695
1,033,710
24,326,330

9

Consolidated Statement of Income(Unit: Million yen)

PeriodItem
Ordinary income
Interest and dividends income
Loans and bills discounted
Interest and dividends on securities
Call loans and bills purchased
Receivables under resale agreements
Deposits
Other
Fees and commission
Other operating income
Other ordinary income
Gains from reversal of reserve for possible loan losses
Gains from recovery of written-off debts
Other income
Ordinary expenses
Interest expenses
Deposits
Certificates of deposits
Call money and bills sold
Securities lending
Borrowed money
Other
Fees and commissions
Other operating expenses
General and administrative expenses
Other expenses
Provision of allowance for doubtful accounts
Other expenses
Ordinary profit
Extraordinary gains
Gains from disposal of fixed assets
Extraordinary losses
Losses on disposal of fixed assets
Losses on impairment of fixed assets
Income before income taxes
Corporate tax, corporate inhabitant tax and business tax
Adjustment of corporate taxes, etc.
Total corporate taxes, etc.
Net income
Net income attributable to non-controlling interests
Net income attributable to stockholders of parent company

Previous consolidated
accounting year
(April 1, 2015 throughMarch 31, 2016)
¥

¥

10

57,81830,30919,285
10,900
31
—
47
44
7,498
17,152
2,858
—
229
2,628
44,718
2,853
938
40
0
54
79
1,741
3,530
13,51922,034
2,782
974
1,807
13,099
11
11
133
109
23
12,978
4,091
922
5,013
7,964
198
7,766

Current consolidated
accounting year
(April 1, 2016 throughMarch 31, 2017)¥¥

48,20629,341
18,132
11,140
(2)
(4)
34
41
7,423
9,219
2,222
132
545
1,544
39,056
1,965
603
23
(3)
270
30
1,040
3,764
8,967
22,647
1,711
—
1,711
9,149
0
0
66
47
18
9,083
2,279
91
2,370
6,712
2
6,709

Current consolidated
accounting year
(April 1, 2016 throughMarch 31, 2017)
Thousand USD$$

429,681261,529
161,618
99,295
(17)
(35)
303
365
66,164
82,17319,805
1,176
4,857
13,762
348,123
17,514
5,374
205
(26)
2,406
267
9,269
33,55079,926
201,862
15,250—15,25081,549
0
0
588
418
160
80,96020,313811
21,124
59,8271759,800Consolidated Statement of Comprehensive Income(Unit: Million yen)

PeriodItem
Net income
Other comprehensive income
Unrealized holding gains (losses) on securities
Deferred gains (losses) on hedges
Remeasurements of defined benefit plans
Unrealized gains from revaluation of land held for use
Comprehensive income
Comprehensive income related to stockholders ofparent company
Comprehensive income related to non-controllinginterests

Previous consolidated
accounting year
(April 1, 2015 throughMarch 31, 2016)
¥

¥

11

7,964
(680)
6,311
(4,783)(2,361)
151
7,283

Current consolidated
accounting year
(April 1, 2016 throughMarch 31, 2017)
¥

¥

6,712
(7,358)(14,280)
6,471
449
—
(645)

Current consolidated
accounting year
(April 1, 2016 throughMarch 31, 2017)
Thousand USD$$

59,827(65,585)(127,284)
57,678
4,002—(5,749)

7,067

(648)

(5,775)

215

2

17

Consolidated Statement of Changes in Stockholders’ Equity
Previous consolidated accounting year (April 1, 2015 through March 31, 2016)(Unit: Million yen)

Stockholders’ equity

Balance at beginning of current
periodChanges during current period
Dividends from surplus
Net income attributable tostockholders of parent company
Acquisition of treasury stock
Disposal of treasury stockReversal of unrealized gains fromrevaluation of land held for use
Change in parent’s equity interests
arising from transactions with
non-controlling stockholders
Net changes of items other thanstockholders’ equity during current
period (net amount)
Total changes during current period
Balance at end of current period

Common stock

Capital surplus

Retained earnings

Treasury stock

¥

¥

¥

¥

24,53841,858

(0)

(720)

¥

(1,452)

7,766

7,766
(714)
53

(13)

(714)
39
37

2,036

¥

—
24,538¥29,283

¥

2,036

2,036
19,002(3,110) ¥

2,521

¥

6,337
48,196¥

Other accumulated comprehensive income
Unrealized
DeferredRemeasuregains fromgains
ments ofrevaluation of(losses) on
definedland held
hedgesbenefit plansfor use¥82,641(1,452)37

Unrealized
holding gains(losses) on
securities
Balance at beginning of current
periodChanges during current period
Dividends from surplus
Net income attributable tostockholders of parent company
Acquisition of treasury stock
Disposal of treasury stockReversal of unrealized gains fromrevaluation of land held for use
Change in parent’s equity interests
arising from transactions with
non-controlling stockholders
Net changes of items other thanstockholders’ equity during current
period (net amount)
Total changes during current period
Balance at end of current period

16,965

Total
stockholders’ equity

Total of otheraccumulatedcomprehensive
income(483) ¥

28,210(661)(1,381)¥

Stock
subscription
rights¥119¥

Noncontrollinginterests

¥

2,591

7,713
90,355Total
net assets¥ 113,562(1,452)
7,766
(714)
39
37
2,036

6,293

¥

6,293
35,577(4,783)¥(4,783)(7,894) ¥

114
114
2,636

12

(2,361)¥(2,361)(2,844) ¥

(736)

(2)

(736)
27,474 ¥

(2)
116 ¥

(2,515)(3,254)(2,515)4,459
76 ¥ 118,021

Current consolidated accounting year (April 1, 2016 through March 31, 2017)(Unit: Million yen)

Stockholders’ equity

Balance at beginning of current
periodChanges during current period
Dividends from surplus
Net income attributable tostockholders of parent company
Acquisition of treasury stock
Disposal of treasury stockReversal of unrealized gains fromrevaluation of land held for use
Net changes of items other thanstockholders’ equity during current
period (net amount)
Total changes during current period
Balance at end of current period

Common stock

Capital surplus

Retained earnings

Treasury stock

Total
stockholders’ equity

¥

¥

¥

¥

¥

19,002

48,196(1,381)(1,436)

6,709

6,709
(6)
0

(6)
0

20

¥

¥

35,577—
24,538¥—19,002Other accumulated comprehensive income
Unrealized
RemeasureDeferred gains
gains fromments of(losses) onrevaluation ofdefinedhedgesland held
benefit plansfor use¥(7,894) ¥

2,636

¥

20

5,292
53,488¥

Total ofotheraccumulatedcomprehensive
income(2,844) ¥90,355(1,436)(0)

Unrealized
holding gains(losses) on
securities
Balance at beginning of current
periodChanges during current period
Dividends from surplus
Net income attributable tostockholders of parent company
Acquisition of treasury stock
Disposal of treasury stockReversal of unrealized gains fromrevaluation of land held for use
Net changes of items other thanstockholders’ equity during current
period (net amount)
Total changes during current period
Balance at end of current period

24,53827,474(6)(1,387)¥Stocksubscription
rights¥116¥

Noncontrollinginterests¥

5,286
95,641Total
net assets

76¥ 118,021(1,436)
6,709
(6)
0
20

¥

(14,280)

6,471(14,280)
21,296 ¥6,471(1,422) ¥

(20)

449

(7,378)40(20)2,616 ¥

449
(2,394) ¥(7,378)20,095 ¥

40
156

13

¥

2

(7,335)2
78(2,049)¥ 115,972

Current consolidated accounting year (April 1, 2016 through March 31, 2017)(Unit: Thousand USD)

Stockholders’ equity
Common stock
Balance at beginning of current
periodChanges during current period
Dividends from surplus
Net income attributable tostockholders of parent company
Acquisition of treasury stock
Disposal of treasury stockReversal of unrealized gains fromrevaluation of land held for use
Net changes of items other thanstockholders’ equity during current
period (net amount)
Total changes during current period
Balance at end of current period$ 218,718

Retained earnings$ 169,373

Total
stockholders’ equity

Treasury stock$ 429,592$(12,309)$ 805,374(12,799)(12,799)

59,80059,800
(53)
0

(0)

(53)
0

178

—
$ 218,718

Unrealized
holding gains(losses) on
securities
Balance at beginning of current
periodChanges during current period
Dividends from surplus
Net income attributable tostockholders of parent company
Acquisition of treasury stock
Disposal of treasury stockReversal of unrealized gains fromrevaluation of land held for use
Net changes of items other thanstockholders’ equity during current
period (net amount)
Total changes during current period
Balance at end of current period

Capital surplus$ 317,113—$ 169,373

47,169$ 476,762

Other accumulated comprehensive income
Unrealized
RemeasureDeferred gains
gains fromments of(losses) onrevaluation ofdefinedhedgesland held
benefit plansfor use$(70,362) $23,495$178

Total ofotheraccumulatedcomprehensive
income(25,349) $ 244,888$(53)(12,362)

Stocksubscription
rights$

1,033

47,116$ 852,491

Noncontrollinginterests

$

677

Total
net assets$ 1,051,974(12,799)
59,800(53)
0178(127,284)(127,284)$ 189,820 $

57,67857,678(12,674) $

(178)
(178)
23,317 $

14

4,002

(65,763)

4,002(65,763)(21,338) $ 179,115 $

356
356
1,390

$

17

(65,380)17695(18,263)$ 1,033,710

Consolidated Statement of Cash Flows(Unit: Million yen)

PeriodItem
Cash flows from operating activities:
Income before income taxes
Depreciation
Impairment losses on fixed assets
Net increase (decrease) in reserve for possible loan losses
Net increase (decrease) in accrued bonuses
Net increase (decrease) in defined benefit assets
Net increase (decrease) in defined benefit liabilities
Net increase (decrease) in allowance for retirement benefits
to directors and corporate auditors
Net increase (decrease) in reserve for reimbursement of deposits
Net increase (decrease) in reserve for contingencies
Net increase (decrease) in reserve for losses on return of interest
Interest and dividends income
Interest expenses
Net (gains) losses on securities transactions
Net (gains) losses on money held in trust
Net foreign exchange (gains) losses
Net (gains) losses on disposal of fixed assets
Net (increase) decrease in loans and bills purchased
Net increase (decrease) in deposits
Net increase (decrease) in certificates of deposits
Net increase (decrease) in borrowings(other than subordinated borrowings)
Net (increase) decrease in due from banks(other than The Bank of Japan)
Net increase (decrease) in payable under repurchase agreement
Net (increase) decrease in foreign exchange (assets)
Net increase (decrease) in foreign exchange (liabilities)
Net (increase) decrease in lease claims and lease
investment assets
Interest and dividends received
Interest paid
Other
Subtotal
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of securities
Proceeds from sales of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayment of subordinated borrowed money
Dividends paid
Dividends paid to non-controlling stockholders
Purchase of treasury stock
Proceeds from sale of treasury stock
Payments from changes in equity interests in subsidiaries
that do not result in change in scope of consolidation
Proceeds from changes in equity interests in subsidiaries
that do not result in change in scope of consolidation
Net cash used in financing activities
Translation adjustments of cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

Previous consolidated
accounting year
(April 1, 2015 throughMarch 31, 2016)

¥

¥

15

12,978
1,364
23
1,019
2
2,500
837

Current consolidated
accounting year
(April 1, 2016 throughMarch 31, 2017)

¥

9,083
1,403
18
(128)
(2)
(861)
(275)

Current consolidated
accounting year
(April 1, 2016 throughMarch 31, 2017)
Thousand USD$

80,96012,505160(1,140)(17)(7,674)(2,451)

(1)

4

35

104
(73)
(0)
(30,309)
2,853
5,029
9
13
98
(42,305)
67,989
1,340

92
135
(3)
(29,341)
1,965
149
5
(11)
47
(32,985)
77,554
(590)

820
1,203
(26)
(261,529)
17,514
1,328
44
(98)
418
(294,010)
691,273(5,258)(54,402)(10,970)(97,780)

1,071

9

80

55,365346
82(21,755)(1,760)102(193,912)(15,687)
909

(199)

(1,077)(9,599)31,140(2,846)(1,390)52,642(4,122)48,51929,890(2,123)
12,07230,648(3,604)
27,044266,423(18,923)
107,603
273,179(32,124)
241,055(1,284,693)
1,190,258
100,037(2,000)1,990(1,105)
322
(564)
29
4,274

(552,465)
398,733
67,224(2,000)1,994(1,401)
66
(277)
(3)
(88,129)(4,924,369)
3,554,086
599,197(17,826)
17,773(12,487)588(2,469)(26)(785,533)—(1,453)
(0)
(714)
0

(2,000)(1,435)(0)(6)
0(17,826)(12,790)
(0)
(53)
0

(700)

—

—

5

—

—

(2,862)(13)
49,917
141,890
191,808(3,442)
11(64,517)
191,808
127,290(30,680)98(575,069)
1,709,671
1,134,593¥$

Overview of Non-consolidated Settlement
Financial Statements
Balance Sheet(Unit: Million yen)

PeriodEnd of 111th period
March 31, 2016

End of 112th period
March 31, 2017

Item
(Assets)
Cash and due from banks
Cash
Deposits
Trading account securities
National government bonds
Municipal bonds
Securities
National government bonds
Municipal bonds
Corporate bonds
StocksOther securities
Loans and bills discounted
Bills discounted
Loans on bill
Loans on deed
Overdrafts
Foreign exchange
Deposits with other foreign branches
Foreign exchange purchased
Foreign exchange receivable
Other assets
Accrued income
Financial derivatives
Cash collateral paid for financial instruments
Other assets
Tangible fixed assets
Buildings
Land
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Prepaid pension cost
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets

¥

¥

16

192,068
23,585
168,482
1,392
317
1,074
936,303465,752
56,366113,380
27,387
273,415
1,515,019
12,662
41,8781,308,142
152,336
6,443
4,353
2,086
2
17,991
3,685
4,444
8,396
1,465
28,548
8,528
18,493
249
1,277
832
619
212
4,708
7,271
(8,665)2,701,914¥¥

127,543
23,353
104,190
1,413
157
1,255
994,923525,799
41,007
112,065
35,771
280,280
1,545,998
10,721
32,918
1,328,560
173,797
8,203
6,023
2,168
11
13,964
2,822
3,073
4,544
3,523
28,5738,600
18,432
111
1,429
909
507
401
5,199
5,907
(6,015)2,726,621

End of 112th period
March 31, 2017
Thousand USD$$

1,136,848
208,155
928,692
12,594
1,399
11,186
8,868,196
4,686,683
365,513998,885
318,8432,498,261
13,780,176
95,561
293,412
11,842,053
1,549,130
73,11753,68519,32498
124,467
25,15327,39140,502
31,402
254,684
76,655
164,292989
12,737
8,102
4,519
3,574
46,341
52,651(53,614)
24,303,601

(Unit: Million yen)

PeriodEnd of 111th period
March 31, 2016

End of 112th period
March 31, 2017

Item
(Liabilities)
Deposits
Current deposits
Ordinary deposits
Savings deposits
Demand deposits
Time deposits
Time savings deposits
Other deposits
Certificates of deposits
Payables under repurchase agreements
Borrowed money
Borrowings
Foreign exchange
Foreign exchange sold
Foreign exchange payable
Other liabilities
Corporate taxes, etc. payable
Unpaid expenses
Unearned income
Benefit compensation reserve
Financial derivatives
Payables under financial instruments, etc.
Asset retirement obligations
Other liabilities
Accrued bonuses
Allowance for bonuses to directors and corporate auditors
Reserve for reimbursement of deposits
Reserve for contingencies
Deferred income taxes
Deferred income taxes for revaluation
Acceptances and guarantees
Total liabilities(Net assets)
Common stock
Capital surplus
Capital reserve
Retained earnings
Legal reserve
Other retained earnings
Net retained earnings forwarded
Treasury stock
Total stockholders’ equity
Unrealized holding gains (losses) on securities
Deferred gains (losses) on hedges
Unrealized gains from revaluation of land held for use
Total valuation and translation adjustments
Stock subscription rights
Total net assets
Total liabilities and net assets¥¥

2,288,767
105,441
1,146,123
29,3699,570
939,24076
58,945
107,120
124,304
12,90012,900229
102
127
36,637
1,846
1,302
743
0
15,334
1,293
53
16,062
815
25
551
327
5,911
2,884
7,271
2,587,746¥

24,538
16,964
16,964
43,956
1,936
42,02042,020(1,381)
84,07735,232(7,894)
2,636
29,974
116
114,168
2,701,914

17

¥

¥

2,362,850
110,979
1,231,327
29,863
9,898
922,34460
58,376
111,530
102,548
—
—
332
24
307
25,033
328
1,142
760
0
4,844
3,809
82
14,065
813
25
643
463
1,964
2,876
5,907
2,614,989¥

24,538
16,964
16,96449,2472,223
47,02447,024(1,387)89,362
20,918(1,422)
2,616
22,112
156
111,6312,726,621

End of 112th period
March 31, 2017
Thousand USD$$

21,061,146
989,205
10,975,372
266,182
88,2258,221,267
534
520,331994,117914,056
—
—
2,959
213
2,736
223,130
2,923
10,1796,774
043,17633,951
730
125,367
7,246
222
5,731
4,126
17,50625,63552,651
23,308,574$

218,718
151,207151,207438,960
19,814
419,146
419,146(12,362)796,523
186,451(12,674)
23,317
197,094
1,390
995,017
24,303,601

Statement of Income(Unit: Million yen)

Period111th period(April 1, 2015 throughMarch 31, 2016)

112th period(April 1, 2016 throughMarch 31, 2017)

Item
Ordinary income:Interest and dividends income
Loans and bills discounted
Interest and dividends on securities
Call loans and bills purchased
Receivables under resale agreements
Deposits
Other
Fees and commissions
Foreign exchange commissions receivable
Income from other services
Other operating income
Gain on foreign exchange trading
Gain on securities trading
Income from national government and other bonds
Income from financial derivatives
Other operating income
Other ordinary income
Gains from reversal of allowance for loan losses
Gains from recovery of written-off debts
Gain on sale of stocks, etc.
Other ordinary income
Ordinary expenses:
Interest expenses
Deposits
Certificates of deposits
Call money and bills sold
Securities lending
Borrowed money
Interest swaps
Other
Fees and commissions
Foreign exchange commissions payable
Other fees and commissions
Other operating expenses
Loss on foreign exchanges
Loss on trading securities transactions
Loss on sale of national government and other bonds
Loss on redemption of national government and other bonds
General and administrative expenses
Other expenses
Provision of reserve for possible loan losses
Loans amortized
Losses on sale of stocks, etc.
Loss on money held in trust
Other expenses
Ordinary profit
Extraordinary gains
Gains from sales of fixed assets
Extraordinary losses
Losses on disposal of fixed assets
Losses on impairment of fixed assets
Income before income taxes
Corporate tax, corporate inhabitant tax and business tax
Adjustment of corporate taxes, etc.
Total corporate taxes, etc.
Net income¥¥

52,31530,264
19,255
10,887
31
—
45
44
6,837
2,292
4,545
12,725
305
10
3,547
8,860
0
2,488
—
229
1,468
791
40,206
2,847
939
40
0
54
72
1,740
0
4,092
370
3,721
9,523
—
—
8,934
588
21,074
2,669
957
376
708
9
617
12,109
11
11
133
109
23
11,987
3,729
925
4,655
7,332

¥

¥

42,562
29,30618,115
11,124
(2)
(4)
32
41
6,737
2,292
4,444
4,413
—
—
3,621
791
0
2,105
208
544
636
715
34,235
1,960
603
23
(3)
270
25
1,041
(0)
4,312
367
3,945
4,576
171
8
3,591
804
21,719
1,666
—
1,185
10
5
464
8,326
0
0
66
47
18
8,259
2,016
(464)
1,551
6,707

112th period(April 1, 2016 throughMarch 31, 2017)
Thousand USD$$

Amount in U.S. dollar is translated from Japanese yen, solely for convenience, at ¥112.19 = U.S. $1.00, the exchange rate prevailing on March 31, 2017.

18

379,374
261,217
161,467
99,153
(17)
(35)
285
365
60,04920,42939,611
39,335——32,2757,050
018,762
1,853
4,848
5,668
6,373
305,151
17,470
5,374
205
(26)
2,406
222
9,278
(0)
38,434
3,271
35,16340,7871,524
71
32,008
7,166
193,591
14,849—10,56289
44
4,135
74,213
0
0
588
418
160
73,616
17,969(4,135)
13,82459,782

Corporate Data
BOARD OF DIRECTORSAND CORPORATE AUDITORSBASIC DATA

Chairman and CEO
Satoru Araki

Date of Foundation
December 20, 1878

President and CEO
Katsuya Sato

Date of Incorporation
December 7, 1942

Senior Managing Director
Kazuyoshi Hirokawa

Authorized Shares(in thousands)
600,000

Managing Director
Ichiro Muromoto
Hiroyuki Kaizu
Satoru Kumakura
Terasu Sato

Outstanding Shares(in thousands)
24,514Paid-in Capital
24,538 million yen

Directors
Masami Watanabe
Ryuji Takahashi
Makoto Takahashi
Hiroki Hoshi
Hiroshi Fukuhara
Kiroku Takeuchi

Number of Shareholders
7,741
Employees
1,427
Stock ListingFirst Section of the Tokyo Stock ExchangeStanding Corporate Auditors
Mikiya Toyooka
Shuichi Nomizu(as of March 31, 2017)

Corporate Auditors
Toshio Kitamura
Shiro Watanabe(as of June 23, 2017)

ORGANIZATIONAL STRUCTURE
OF THE HEADQUARTERS
General Meeting of
Shareholders
Accounting Auditor
Ernst & Young ShinNihon LLC

Board of Directors

Corporate Auditors/
Board of Corporate Auditors

Chairman and CEO

Secretariat of Board of
Corporate Auditors<Council of Managing
Directors>

President and CEO
Senior Managing Directors
Managing Directors

Market andCapitalCustomer Sales

Profit Center

Management Center

Business Supervision Division

General Planning Division

Direct Channel Promotion Division

Risk Control Division

Business Promotion & Solution Division

General Affairs DivisionInternational Business Division

Human Resources Division

Operation Supervision Division

Secretarial Office

Operation Support Division

Niigata Office

Loan DivisionTokyo Office

Audit DivisionMarket and Capital Division

Branches19(as of July 1, 2017)

Subsidiaries
Consolidated Subsidiaries of The Hokuetsu Bank, Ltd.
Name of Companies

Type of Business

Capital(Million yen)

Voting Share(%)

The Hokuetsu Leasing Co., Ltd.

Leasing

100

100

The Hokuetsu Card, Ltd.

Credit Guarantee Business
Credit Card Business

20

100

The Hokuetsu Credit Guarantee Co., Ltd.

Credit Guarantee Business

210

100

The Hokugin Economic ResearchInstitute, Ltd.

Research and investigation as well as
provision of information onsocioeconomic issues

30

50

SERVICE NETWORKHead Office
2-14, Otedori 2-chome, Nagaoka City,
Niigata 940-8650
Phone: (0258) 35-3111
International Business Division
Address: same as Head Office
SWIFT: HETSJPJT
Phone: (0258) 39-7371
Foreign Exchange Offices
The following are the major branches providing
a full range of foreign exchange banking services:
Head OfficeKen-oh Tsubame Branch
1-2 Butsuryu Center, Tsubame City,
Niigata 959-1277
Niigata Branch
1300, Hachibancho, Kamiookawamaedori, Chuo-ku,
Niigata City, Niigata 951-8602

Sanjo Branch
2-4-31, Asahicho, Sanjo City,
Niigata 955-0065
Tokyo Branch
16-1, Nihonbashi Koamicho Chuo-ku,
Tokyo 104-0016
Tsubame Branch
2-10, Kokucho, Tsubame City,
Niigata 959-1200
Number of Branches by Area
Niigata Prefecture
Gunma Prefecture
Saitama Prefecture
Tokyo
Total
(as of March 31, 2017)

20

79
2
2
1
84