Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2018
(Based on Japanese GAAP)May 11, 2018
Company name:

The Musashino Bank, Ltd.

Stock exchange listing: Tokyo
Stock code:
8336
Representative:
Inquiries:

URL

http://www.musashinobank.co.jp

President
Executive Officer and General Manager ofKikuo Kato

Ritsu Kumagai
General Planning and Management Division
Scheduled date of ordinary general meeting of shareholders:June 27, 2018
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 27, 2018
June 28, 2018

Trading accounts:
Preparation of supplementary material on financial results:

No
Yes

Holding of financial results meeting:

Yes

TEL

048-641-6111(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 201872,263
1.9
15,73222.0
10,917
11.8
Year ended March 31, 201770,903(4.6)
12,887(31.3)
9,762(22.2)
Profit attributable toOrdinary profit/total
owners ofassets
parent/equity
Yen%%
325.714.5
0.3
291.124.2
0.2

Diluted earnings pershare

Earnings per share
Yen
325.91
291.35

Year ended March 31, 2018Year ended March 31, 2017

Ordinary
profit/ordinary
income%21.7
18.1(2) Consolidated financial position
Total assets
As of March 31, 2018
As of March 31, 2017

Net assets

Equity ratio

Millions of yen
4,560,693
4,507,139

Millions of yen
247,043
233,974

Cash flows fromoperating activities
Millions of yen(1,310)107,440

Cash flows frominvesting activities
Millions of yen
45,749(28,933)

Net assets per share%
5.4
5.1

Yen
7,364.61
6,976.35(3) Consolidated cash flows

Year ended March 31, 2018Year ended March 31, 2017

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(5,172)250,092(16,513)
210,826

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2017
Year ended March 31, 2018Year ending March 31, 2019
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%––40.00
40.00

––

40.00
40.00

80.00
80.00

2,682
2,682

27.4
24.5

1.1
1.1

–

40.00

–

40.00

80.00

124.1

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen%Yen
Six months ending
September 30, 2018
Full year

36,400

1.4

9,000

15.7

6,100

13.7

182.1170,500(2.4)

16,2002.9

11,1001.6

331.37

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
Yes

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 201833,805,456 shares As of March 31, 201733,805,456 shares

Number of treasury shares at the end of the period
As of March 31, 2018308,515 shares As of March 31, 2017

311,831 shares

33,497,055 shares Year ended March 31, 201733,509,899 shares

Average number of shares during the period
Year ended March 31, 20182

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCash and due from banks

211,372

250,530

Monetary claims bought
Trading account securities

8,626
621

10,558364

1,500
781,884

1,490
740,176

3,412,133
3,858

3,457,846
4,951

Lease receivables and investment assets
Other assets

19,18929,467

20,98534,455

Tangible fixed assets
Buildings, net

37,398
10,12637,3749,999

LandConstruction in progress

25,300133

25,322
244

Other tangible fixed assets
Intangible fixed assets

1,836
3,050

1,808
2,863

2,875
175

2,688
175

5,843
1,050

6,659
1,010

6,516
(15,375)

4,802(13,377)

4,507,139

4,560,693

3,938,291

4,030,917

Negotiable certificates of deposit
Call money and bills sold188,765
24,706

163,420
22,187

Payables under securities lending transactions
Borrowed money

46,434
17,152

21,62915,715

Foreign exchanges
Bonds payable

162
15,000239
15,000

Other liabilities
Provision for bonuses

20,7101,251

22,529
1,210

Provision for directors' bonuses
Net defined benefit liability

10
4,120

113,810

Provision for directors' retirement benefits
Provision for loss on interest repayment

–
42

2959

Provision for reimbursement of deposits
Provision for point card certificates

75476

651
78

Provision for contingent loss
Provision for share-based compensation

311
14219
38

Allowance for demolition of non-current assets
Deferred tax liabilities–4,616294
6,578

Deferred tax liabilities for land revaluation
Acceptances and guarantees

4,227
6,516

4,227
4,802

4,273,164

4,313,650

Money held in trust
Securities
Loans and bills discounted
Foreign exchanges

Software
Other intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan lossesTotal assets
Liabilities
Deposits

Total liabilities

3

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Net assets
Capital stock
Capital surplus

45,74338,29045,74338,291Retained earnings
Treasury shares

120,667(907)

128,901(900)

Total shareholders' equity

203,793

212,036

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

24,813(1,399)28,754(1,279)

Revaluation reserve for landRemeasurements of defined benefit plans

8,286(1,831)8,286(1,105)

Total accumulated other comprehensive income

29,86934,655

80
230

66
285

233,974

247,043

4,507,139

4,560,693

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2017
Ordinary income

Fiscal year ended
March 31, 201870,90372,26343,33135,49642,37333,731

7,600
(15)

8,387
(4)

0249

0259

Fees and commissions
Other ordinary income

12,826
1,487

13,824
1,365Other income
Recoveries of written off claims

13,257
1,022

14,699568

12,23458,015

14,131
56,530

2,132
830

1,938
624

Interest on negotiable certificates of deposit
Interest on call money and bills sold

45
218

31301

Interest on payables under securities lending transactions
Interest on borrowings and rediscounts

143
123

258
113

Interest on bonds
Other interest expenses

133
636

91
518

Fees and commissions payments
Other ordinary expenses

3,874
851

3,751
1,525

General and administrative expenses
Other expenses

36,851
14,30636,587
12,727

4,239
10,066

1,71611,010

Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income

Other
Ordinary expenses
Interest expenses
Interest on deposits

Provision of allowance for loan losses
Other
Ordinary profit

12,887

15,732Extraordinary income
Gain on disposal of non-current assets––

00

Extraordinary losses
Loss on disposal of non-current assets

65399
7–
11390

Profit before income taxes

12,881

15,334

Income taxes - current
Income taxes - deferred

3,571(354)

4,573
(207)

Total income taxes

3,216

4,366

Profit9,664

10,967

(98)

50

9,762

10,917

Impairment loss
OtherProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018
9,664(762)

10,967
4,787

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(2,301)
657

3,942
119

Remeasurements of defined benefit plans, net of tax

881

725

8,902

15,755

8,998

15,703(96)

51

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity
Capitalstock
Balance at beginningof current period

Capitalsurplus45,743Retainedearnings

38,351

Treasuryshares113,922

(804)

Total
shareholders'equity

197,213

Changes of items
during period
Dividends ofsurplus
Profit attributableto owners of parent(3,018)(3,018)

9,762

9,762

Purchase oftreasury shares
Disposal oftreasury shares

0

Transfer to capitalsurplus from–(104)

(104)

00

–

–

retained earnings
Purchase of shareof consolidated
subsidiaries
treasury stock
Sales of shares ofconsolidated

(60)

(60)

–

–

subsidiaries
Net changes ofitems other thanshareholders'equityTotal changes ofitems during period
Balance at end ofcurrent period

–

(60)

6,744

(103)

6,580

45,74338,290120,667(907)

203,7937

Accumulated other comprehensive income

Balance at beginningof current period

Valuationdifference

Deferredonavailable-gains orlosses on

for-salesecurities

hedges27,116(2,056)

Revaluation

Remeasurements ofreserve forland

definedbenefitcomprehensive

plansincome8,286(2,712)

Total
accumulated
other30,633

Shareacquisition

Noncontrollingrightsinterests

74

1,157

Total net
assets229,078

Changes of items
during period
Dividends of(3,018)surplusProfit attributableto owners of parent

9,762

Purchase oftreasury shares(104)

Disposal of0treasury sharesTransfer to capitalsurplus fromretained earnings–

Purchase of shareof consolidated
subsidiaries(60)

treasury stock
Sales of shares ofconsolidated
subsidiaries–

Net changes of
items other thanshareholders'(2,303)

657

–

881

(764)

6(926)(1,684)(2,303)

657

–

881

(764)

6(926)

4,895

24,813(1,399)8,286(1,831)

29,86980

230

233,974

equityTotal changes of
items during period
Balance at end ofcurrent period8

Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity

Balance at beginningof current period

CapitalCapitalRetained

Treasurystock

surplusearnings

shares45,74338,290120,667

Total
shareholders'equity(907)

203,793

Changes of items
during period
Dividends ofsurplusProfit attributableto owners of parent(2,682)(2,682)

10,917

10,917Purchase oftreasury shares
Disposal of(0)treasury shares

(11)

(11)

18

18

Transfer to capitalsurplus fromretained earnings

0(0)

–

Purchase of shareof consolidated
subsidiaries––

11

treasury stock
Sales of shares ofconsolidated
subsidiaries
Net changes of
items other thanshareholders'equityTotal changes ofitems during period
Balance at end ofcurrent period–

18,233

7

8,242

45,74338,291

128,901(900)

212,0369

Accumulated other comprehensive income

Balance at beginningof current period

Valuationdifference

Deferredonavailable-gains orlosses on

for-salesecurities

hedges24,813(1,399)

Revaluation

Remeasurements ofreserve forland

definedbenefitcomprehensive

plansincome8,286(1,831)

Total
accumulated
other29,869Shareacquisition

Noncontrollingrightsinterests

80230

Total net
assets233,974

Changes of items
during period
Dividends of(2,682)

surplusProfit attributableto owners of parent

10,917Purchase oftreasury shares(11)

Disposal of18

treasury shares
Transfer to capitalsurplus fromretained earnings–

Purchase of shareof consolidated
subsidiaries–

treasury stock
Sales of shares ofconsolidated
subsidiaries

1

Net changes ofitems other thanshareholders'

3,941

119

–

725

4,786

(14)

54

4,826

3,941

119

–

725

4,786

(14)

54

13,06828,754(1,279)8,286(1,105)34,65566

285

247,043

equityTotal changes ofitems during period
Balance at end ofcurrent period

10Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 201812,881

15,334

2,617
–

3,271
1

Share of loss (profit) of entities accounted for using equity
method(28)(8)

Increase (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses

101(1)(1,998)(41)

Increase (decrease) in provision for directors' bonuses
Decrease (increase) in net defined benefit asset

(0)
(356)

1(438)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement

(252)

(314)

–

29

Depreciation
Impairment loss

benefits
Increase (decrease) in provision for loss on interest repayment

(14)

16

Increase (decrease) in provision for reimbursement of deposits
Increase (decrease) in provision for point card certificates2147(102)
2

Increase (decrease) in provision for contingent loss
Increase (decrease) in provision for share-based compensation(101)
14(91)
23Increase (decrease) in allowance for demolition of non-current
assets–294(43,331)2,132(42,373)
1,938

Loss (gain) related to securities
Loss (gain) on money held in trust

(985)
(1)

(578)
6

Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets

114
5

2,579
7

Net decrease (increase) in trading account securities
Net decrease (increase) in loans and bills discounted(126)(92,966)257(45,713)

Net increase (decrease) in deposit
Net increase (decrease) in negotiable certificates of deposit

93,25632,938

92,626(25,345)

Net increase (decrease) in payables under securities lendingtransactions

39,177(24,805)

Net increase (decrease) in borrowed money (excludingsubordinated borrowings)

1,157

1,062

24108

Net decrease (increase) in call loans
Net increase (decrease) in call money

2,926
24,706(1,932)(2,519)Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities(1,543)(174)(1,092)76

Proceeds from fund management
Payments for finance

44,157(2,417)

42,636(1,904)

Other, net(1,602)(9,137)

Subtotal

112,532

1,877

Income taxes paid

(5,091)(3,187)

Net cash provided by (used in) operating activities

107,440(1,310)Gain on fund management
Financing expenses

Net decrease (increase) in deposit (excluding deposit paid toBank of Japan)

11

(Millions of yen)

Cash flows from investing activities
Purchase of securities

Fiscal year ended

Fiscal year ended

March 31, 2017

March 31, 2018

(171,083)(161,253)

30,192
114,236

47,093
162,748(9)––0

Purchase of tangible fixed assets
Proceeds from sales of property, plant and equipment(1,214)–(1,945)
1

Purchase of intangible assets
Payments for asset retirement obligations(1,040)
(13)

(892)
(2)

Net cash provided by (used in) investing activities

Proceeds from sales of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust(28,933)

45,749Cash flows from financing activities
Decrease in subordinated borrowings(2,500)(2,500)

Redemption of subordinated bonds
Cash dividends paid

(10,000)(3,018)–(2,682)

Dividends paid to non-controlling interests
Purchase of treasury shares

(0)
(104)

(0)
(11)

Purchase of treasury shares of subsidiaries
Proceeds from sales of treasury shares

(890)
0–
17–

4

(16,513)(5,172)

Proceeds from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents

61,99439,266

Cash and cash equivalents at beginning of period

148,831

210,826

Cash and cash equivalents at end of period

210,826

250,092

12