Japan Bank for International Cooperation
Summary of the Financial Statements for the Fiscal Year Ending March 2003
(In accordance with Japanese GAAP)
Japan Bank for International Cooperation prepared its financial statements for the fiscal year
ending March 2003 (in accordance with generally accepted accounting principles and practices forJapanese private corporations (Japanese GAAP)) and released it on June 30, 2003. As in the past, inorder to ensure objectivity, an audit report by ChuoAoyama Audit Corp. was obtained pursuant to Article
193.2 of the Securities Transaction Law, which certified the financial statements as being fairly presented.
Financial highlights of the financial statement for the fiscal year ending March 2003 (inaccordance with Japanese GAAP) are shown below.
Fiscal Year Ending March 2003

The Bank
Account

International
Financial
Account

323,642
69,884
39,188Overseas
Economic
Cooperation
Account
251,276
98,774816,428

716,512221,352-

442,268
116,647-

Overseas
Economic
Cooperation
Account
274,244
104,627-

88,232△583,284

261,776

121,225

140,550

Capital7,489,844
985,500
6,504,344 7,270,744
Retained Earnings
28,186
618,994567,343△590,807
Capital and Retained35.3
15.0
55.9
34.0
Earnings / Total Assets (%)
Total Assets
21,294,849
10,717,200 10,577,649 23,072,990
Loans
20,164,343
9,738,760 10,425,582 22,027,407
Securities
122,912122,912124,273
Borrowings
11,218,681
6,606,964
4,611,717 12,274,479
Bonds and Notes
1,589,084
1,564,084
25,000 1,587,696(Note 1) As to ODA-loan related losses, please refer to next section I.

985,500
574,867
13.0

6,285,244

12,044,980
11,003,074
1,599
7,574,648
1,562,696

11,028,009
11,024,333122,674
4,699,830
25,000Ordinary Revenue
Net Ordinary Income
ODA-loan relatedLosses(Note 1)
Net income/Loss(△)

The BankAccountInternationalFinancialAccount574,919
168,659
855,616△495,051(Unit: Million yen)
Fiscal Year Ending March 2002

△7,52356.9

I. States of Income and Loss
With net ordinary income of 69.8 billion yen from the International Financial Account and 98.7
billion yen from the Overseas Economic Cooperation Account, the Bank posted a consolidated net
ordinary income of 168.6 billion yen and prolonged a firm profit level for the financial year ending March2003. Since JBIC’s asset-liability structure is such that the overall loan assets have longer maturity thanliabilities, declining interest rates in recent years have contributed to an increase in income. There was no
significant change in this trend during fiscal year ending March 2003.

1

The size of the Bank’s net ordinary income declined in comparison with that of the fiscal year
prior. The reduction was due to the decrease of the accrued lending interest caused by the change of thedebt relief method described later in this report as well as the change this past year in the calculation of
the deferred hedge profit pertaining to the Bank’s interest-rate swap. The latter had contributed to atemporary rise in revenues for the last fiscal year.
On the other hand, what is noteworthy about the reported term is that “Grant aid for debt relief(Note 2)” was replaced by a waiver of loans provided by JBIC, in accordance with the “Changes of theDebt Relief method” announced by the Japanese government on December 10, 2002. JBIC thus has either
written off or set aside allowance for corresponding ODA loans, which is reflected in the extraordinary
loss (“ODA-loan related losses”) of 39.1 billion yen for the International Financial Account, 816.4 billion
yen for the Overseas Economic Cooperation Account and 855.6 billion yen for the Bank Account. As aresult, net income/(loss) amounts to 88.2 billion yen for the International Financial Account and (583.2)
billion yen for the Overseas Economic Cooperation Account and (495.0) billion yen for the Bank Account,which is a large decrease in profit compared with the previous fiscal year .
However, the announcement on the waiver of ODA loans for debt relief only refers to a shift inthe method of providing debt relief, and it does not constitute any change in the coverage of the countries
and the loan portfolio for which debt relief has been agreed upon in the international framework. The
government announced that since the waiver of JBIC’s loans is a government policy decision, it willcontinue to take all the necessary measures to maintain the financial soundness of JBIC. Besides, as it ismentioned in the following paragraph, the ratio of risk-monitored loans to outstanding loans decreased
from the previous fiscal year end mainly due to the write-off of corresponding ODA loans. Consideringsuch factors, the financial soundness of JBIC is continuously secured.
Note 2: The Government of Japan has provided debt relief in the form of grant aid for ODA loan
recipients in exchange for repayments of ODA loans.

2

<The Bank Account>(Unit: JPY 100 million)

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income
General and Administrative Expenses (∆)
Personnel expenses (∆)
Premises and equipment expenses (∆)
Taxes (∆)
Net operating income (prior to provision for allowancefor possible loan losses)
Provision for allowance for possible loan losses
Other ordinary gain/loss (∆)
Write-off of securities
Write-off of Loans
OthersNet ordinary income
Net extraordinary income/loss (∆)
ODA-loan related losses
Net income/loss (∆ indicates net loss for the term)

Fiscal Year ending
March 2003
1,962
1,962
9△9△274△138△131△41,688

Fiscal Year ending
March 2002
2,485
2,456
235△261△127△129△42,223△2△311,686△6,637△8,556△4,950△10△7△422,213404
2,617<International Financial Account>(Unit: JPY 100 million)

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income
General and Administrative Expenses (∆)
Personnel expenses (∆)
Premises and equipment expenses (∆)
Taxes (∆)
Net operating income (prior to provision for allowancefor possible loan losses)
Provision for allowance for possible loan losses
Other ordinary gain/loss (∆)
Write-off of securities
Write-off of Loans
OthersNet ordinary income
Net extraordinary income/loss (∆)
ODA-loan related losses
Net income /loss(∆ indicates net loss for the term)

3

Fiscal Year ending
March 200387285822△7△171△86△82△2701

Fiscal Year ending
March 2002
1,334
1,298314△163△79△81△21,171△231698183△392882△4△50
1,166451,212

<Overseas Economic Cooperation Account>(Unit: JPY 100 million)

Gross operating profit
Net interest income
Net fees and commissions
Net other operating income
General and Administrative Expenses (∆)
Personnel expenses (∆)
Premises and equipment expenses (∆)
Taxes (∆)
Net operating income (prior to provision for allowancefor possible loan losses)
Provision for allowance for possible loan losses
Other ordinary gain/loss (∆)
Write-off of securities
Write-off of Loans
OthersNet ordinary income/loss (∆)
Net extraordinary income/loss (∆)
ODA-loan related losses
Net income /loss (∆ indicates net loss for the term)

Fiscal Year ending
March 2003
1,090
1,104
△12△1△102△52△48△1987

Fiscal Year ending
March 2002
1,150
1,157
△80△97△48
△47
△1
1,052

00987
△6,820△8,164△5,832△6△71
1,046359
1,405

II. States of Assets, Liabilities, and Capital
As of the end of March 2003, the International Financial Account had total assets of 10,717.2
billion yen (decreased 1,327.7 billion yen from the previous fiscal year ), total liabilities of 9,112.7 billion
yen (decreased 1,371.9 billion yen from the previous fiscal year ), and total capital and retained earningsof 1,604.4 billion yen (increased 44.1 billion yen from the previous fiscal year ). The Overseas Economic
Cooperation Account had total assets of 10,577.6 billion yen (decreased 450.3 billion yen from theprevious fiscal year), total liabilities of 4,664.1 billion yen (decreased 86.1 billion yen from the previousfiscal year), and total capital and retained earnings of 5,913.5 billion yen (decreased 364.1 billion yen
from the previous fiscal year ). Overall, the Bank had total assets of 21,294.8 billion yen (decreased
1,778.1 billion yen from the previous fiscal year ), total liabilities of 13,776.8 billion yen (decreased
1,458.0 billion yen from the previous fiscal year ), and total capital and retained earnings of 7,518 billion
yen (decreased 320.0 billion yen from the previous fiscal year .
III. State of Loans
With regard to self-assessment on asset quality, including risk-monitored loans as described
below and disclosure of assets in accordance with the Financial Revitalization Law, JBIC obtained anauditor’s report from ChuoAoyama Audit Corp. in accordance with “Practical Guidelines for Evaluationof Internal Control over Valuation of Assets and Audits for Write-Offs and Reserve for Possible Loan
Losses of Banks and Similar Institutions” (Report No. 4 of Ad Hoc Committee for Audits of Banks of theJapanese Institute of Certified Public Accountants), which certified the asset quality self-assessment as
being fairly presented.
<Risk-Monitored Loans>
Based on self-assessment on asset quality, the loans in the following table were classified bytheir collectiblity considering JBIC’s status as a public lender and international treatment of public
lenders’ credits to foreign governments, referring to the disclosure standard of Risk-monitored loans
adopted by commercial financial institutions under the Banking Law of Japan. The ratio of risk-monitoredloans to outstanding loans as well as the total amount of risk-monitored loans declined from the previous
fiscal year end.

4(Unit: JPY 100 million, %)<The Bank Account>

Total Amounts of RiskMonitored Loans
Past due Loans (Threemonths or more)
Restructured Loans
Non-accrual Loans
Bankrupt Loans
Total Amounts ofOutstanding Loans

Ratio to total loans

As of theend ofMarch 2002

End of March2003

End of March
2002

9,888

3.74%

4.49%

As of the endof March
2003
7,545

Change fromthe end ofMarch 2002
△2,342

1,438

228

1,209

0.71%

0.55%

3,724
2,376
6
201,643

1,987△4,539△19△18,630

1,736
6,915
26
220,274

1.85%
1.18%
0.00%
100.00%

0.79%
3.14%
0.01%
100.00%(Unit: JPY 100 million, %)<International Financial
Account>

Total Amounts of RiskMonitored Loans
Past due Loans (Threemonths or more)
Restructured Loans
Non-accrual Loans
Bankrupt Loans
Total Amounts of
Outstanding Loans

Ratio to total loans

As of theend ofMarch 2002

End of March
2003

End of March
2002

5,248

6.29%

4.77%

As of the endof March
2003
6,127

Change fromthe end ofMarch 2002
878926

535

390

0.95%

0.35%

3,724
1,470
697,387

1,996△1,634△19△12,643

1,727
3,104
26110,0303.82%
1.51%
0.01%
100.00%

1.57%
2.82%
0.02%
100.00%(Unit: JPY 100 million, %)<Overseas Economic
Cooperation Account>

Total Amounts of RiskMonitored Loans
Past due Loans (Threemonths or more)
Restructured Loans
Non-accrual Loans
Bankrupt Loans
Total Amounts of
Outstanding Loans

End of March2003

End of March
2002

4,639

1.36%

4.21%

△306

818

0.49%

0.74%

△9
△2,905△5,987

9
3,811
110,2430.87%
100.00%

0.01%
3.46%
100.00%Change fromthe end ofMarch 2002
△3,221511
905
104,255

5Ratio to total loans

As of theend ofMarch 2002

As of the endof March2003
1,417

<Assets Based on the Financial Revitalization Law>
Based on self-assessment on asset quality, the loans in the following table were classified bytheir collectibility considering JBIC’s status as a public lender and international treatment of public
lenders’ credits to foreign governments, referring to the disclosure standard based on the Financial
Revitalization Law. The ratio of disclosed loans to the total loans as well as the total amount of disclosed
credits (e.g. Loans, Acceptances and Guarantees, and other credits) declined from the previous year end.
(Unit: JPY 100 million, %)<The Bank Account>

Loan Assets required to bedisclosed under the Financial
Revitalization Law
Bankrupt and Quasibankrupt Assets
Doubtful Assets
Substandard Loans
Normal Assets
Total

Ratio to total loans

As of theend ofMarch 2002

End of March
2003

End of March
2002

9,888

3.64%

4.32%

As of theend ofMarch 2003
7,678

Change fromthe end ofMarch 2002
△2,209

422

26

395

0.20%

0.17%

2,093
5,162
203,057
210,736△4,452
2,216△15,740△17,949

6,546
2,945
218,797
228,685

0.99%
2.45%
96.36%
100.00%

2.86%
1.29%
95.68%
100.00%(Unit: JPY 100 million, %)<International Financial
Account>

Loan Assets required to bedisclosed under the Financial
Revitalization Law
Bankrupt and Quasibankrupt Assets
Doubtful Assets
Substandard Loans
Normal Assets
Total

Ratio to total loans

As of theend ofMarch 2002

End of March2003

End of March2002

5,248

5.96%

4.48%

As of theend of
March 2003
6,260

Change fromthe end ofMarch 2002
1,012

422

114

308

0.40%

0.26%

1,187
4,650
98,810105,071△1,634
2,532△13,200△12,188

2,822
2,117
112,010
117,259

1.13%
4.43%
94.04%
100.00%

2.41%
1.81%
95.52%
100.00%(Unit: JPY 100 million, %)<Overseas Economic
Cooperation Account>

Loan Assets required to bedisclosed under the Financial
Revitalization Law
Bankrupt and Quasibankrupt Assets
Doubtful Assets
Substandard Loans
Normal Assets
Total

Ratio to total loans

As of theend ofMarch 2002

End of March2003

End of March
2002

4,639

1.34%

4.16%

As of theend ofMarch 2003
1,417

Change fromthe end ofMarch 2002
△3,221-△8787-

0.08%

905
511
104,247
105,664△2,818△315△2,540△5,761

3,723
827
106,787
111,426

0.86%
0.48%
98.66%
100.00%

3.34%
0.74%
95.84%
100.00%
End6