Japan Bank for International Cooperation
Summary of Japanese GAAP-Based Financial Statements forFiscal Year Ending March 2005
Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) made public
its financial statements for the fiscal year ending March 2005 in accordance with generally accepted
accounting principles and practices for Japanese private corporations (Japanese GAAP) on June 30, 2005.
In order to ensure its objectivity, JBIC obtained an auditor’s report from ChuoAoyama
PricewaterhouseCoopers pursuant to Article 193.2 of the Securities Transaction Law.
Financial highlights of the Japanese GAAP-based financial statements for the fiscal year ending
March 2005 are as follows.
(Unit: million yen)
Fiscal Year ending March 2005

Fiscal Year ending March 2004

The BankAccountInternational
Financial
Account

Overseas
Economic
Cooperation
Account

The Bank
Account

International
Financial
Account

Overseas
Economic
Cooperation
Account

Ordinary Revenue

508,310

254,430

253,879

527,003271,282

255,721

Ordinary Expenses

409,305

238,413

170,892

352,851

225,271

135,362

Net Ordinary Income

99,00416,017

82,987

174,152

46,010120,358

Net Extraordinary Income

31,418326

31,09233,759443

41,098Net Income

130,423

16,343

114,079

207,91046,453

161,457(Unit: million yen, %)As of March 31, 2005

Total Assets
Cash and Due from
Banks
Securities
Loans

As of March 31, 2004

The Bank
Account

International
Financial
Account

Overseas
Economic
Cooperation
Account

The Bank
Account

International
Financial
Account

Overseas
Economic
Cooperation
Account

20,653,038

9,827,312

10,825,726

20,839,757

10,146,237

10,693,520

170,029

106,105

63,924

217,328

182,404

34,924

119,980103

119,877

120,514-120,514

19,187,414

8,446,621

10,740,793

19,306,245

8,727,720

10,578,524

599,982

523,350

76,631

704,284

622,481

81,802

899,389

899,389-

724,924

724,924-

Miscellaneous Assets
Customer’s Liabilities
for Acceptances andGuarantees
Allowance
forPossible Loan Losses
Total Liabilities△353,664△171,153△182,511△263,425△133,868△129,557

12,477,695

8,227,942

4,249,752

12,943,761

8,525,535

4,418,226

Bonds and Notes

1,776,254

1,751,254

25,0001,561,373

1,536,373

25,000Borrowings
MiscellaneousLiabilities
AcceptancesandGuarantees
TotalCapitalandRetained Earnings
CapitalRetained Earnings andReserve

9,559,735

5,359,276

4,200,459

10,392,925

6,027,018

4,365,907

224,079

206,716

17,363

246,191

225,843

20,347899,389

899,389-

724,924

724,924-

8,175,343

1,599,369

6,575,973

7,895,995

1,620,702

6,275,293

7,876,744

985,500

6,891,244

7,690,144

985,500

6,704,644

298,598

613,869△315,270

205,851635,202△429,350

39.6

16.3

60.7

37.9

16.0

58.7

Capitaland
Retained
Earnings / Total Assets (%)

1

I. Income (Loss)
JBIC's asset-liability structure is characterized by long maturities of both assets and liabilities,
with the overall loan assets having a longer maturity than the liabilities. Thus declining or low and stableinterest rates in recent years have enabled JBIC to post consistently robust levels of net interest income.
As there was no significant change in this trend during FY2004, operating income amounted to 192.6
billion yen. However, affected by increase in allowance for possible loan losses due to the worsening
conditions of some of the debtors, ordinary income resulted in 99.0 billion yen. By adding extraordinary
income of 31.4 billion yen, mainly a grant of 30.0 billion yen provided by the Japanese government out of
its general account, net income was recorded as 130.4 billion yen. This grant has been provided since FY
2003 in accordance with the policy of the Japanese government to ensure fiscal soundness of JBIC underthe “Changes of the Debt Relief Method” announced in FY2002.

<The Bank Account>(Unit: hundred millions of yen)

Gross Operating Profit
Net Interest Income
Net Fees and Commissions
Net Other Operating Income
General and Administrative Expenses (△)
Net Operating Income (Prior to Provision for
General Allowance for Possible Loan Losses)
Other Ordinary Gain/Loss (△)
Provision for General Allowance for Possible Loan Losses

Write-off of Loans
Write-off of Securities
OthersNet Ordinary Income
Net Extraordinary Income
Net Income<International Financial Account>

Fiscal Year ending
March 2005
2,156
2,040
6109
△229

Fiscal Year ending
March 2004
2,101
2,1399△48
△244

1,926

1,856

△936
△909
△0△28
1990
314
1,304

△115
△99△1△194
1,741
337
2,079

(Unit: hundred millions of yen)

Gross Operating Profit
Net Interest Income
Net Fees and Commissions
Net Other Operating Income
General and Administrative Expenses (△)
Net Operating Income (Prior to Provision for
General Allowance for Possible Loan Losses)
Other Ordinary Gain/Loss (△)
Provision for General Allowance for Possible Loan Losses

Write-off of Loans
Write-off of Securities
OthersNet Ordinary Income
Net Extraordinary Income
Net Income

2

Fiscal Year ending
March 2005
683
549
21112
△143

Fiscal Year ending
March 2004
78780725△46△152

539

634

△379
△380△01160
3163△174△177△144604464

<Overseas Economic Cooperation Account>(Unit: hundred millions of yen)

Gross Operating ProfitNet Interest Income
Net Fees and Commissions
Net Other Operating Income
General and Administrative Expenses (△)
Net Operating Income (Prior to Provision for
General Allowance for Possible Loan Losses)
Other Ordinary Gain/Loss (△)
Provision for General Allowance for Possible Loan Losses

Write-off of Loans
Write-off of Securities
OthersNet Ordinary Income
Net Extraordinary Income
Net Income

Fiscal Year ending
March 2005
1,473
1,491
△14△3△86

Fiscal Year ending
March 2004
1,314
1,331
△15△1△91

1,387

1,222

△557
△529
△280829310
1,140△19△1901,203
410
1,614(Note) General allowance for possible loan losses is the allowance for claims on debtors other thanBankrupt Borrowers, Substantially Bankrupt Borrowers and Potentially bankrupt Borrowers.

II. Assets, Liabilities, and Capital
As of March 31, 2005, the International Financial Account had total assets of 9,827.3 billion yen(decreased 318.9 billion yen from the previous fiscal year), total liabilities of 8,227.9 billion yen(decreased 298.5 billion yen from the previous fiscal year), and total capital and retained earnings of
1,599.3 billion yen (decreased 21.3 billion yen from the previous fiscal year). The Overseas Economic
Cooperation Account had total assets of 10,825.7 billion yen (increased 132.2 billion yen from theprevious fiscal year), total liabilities of 4,249.7 billion yen (decreased 168.4 billion yen from the previous
fiscal year), and total capital and retained earnings of 6,575.9 billion yen (increased 300.6 billion yen
from the previous fiscal year). Overall, the Bank had total assets of 20,653.0 billion yen (decreased 186.7
billion yen from the previous fiscal year), total liabilities of 12,477.6 billion yen (decreased 466.0 billion
yen from the previous fiscal year), and total capital and retained earnings of 8,175.3 billion yen (increased279.3 billion yen from the previous fiscal year.

III. Loans
The results of self-assessment, including the classification of risk-monitored loans shown below
and loan assets required to be disclosed in accordance with disclosure requirements set forth in theFinancial Revitalization Law (FRL), were audited by ChuoAoyama PricewaterhouseCoopers based on
the Practical Guidelines for Examining Internal Control Regarding Self-Assessment of Assets in Banksand Other Financial Institutions and Auditing Writeoffs for Defaulted Loans and Provisioning for
Possible Loan Losses,” (Japanese Institute of Certified Public Accountants, Special Committee Report No.
4, April 15, 1997).
What is unique about JBIC’s operations is that its loans for developing country governments
are taken to be official credit. Thus, when an indebted country is temporarily unable to service debt due toeconomic difficulties, debt rescheduling will sometimes takes place, based on an international agreement
among the creditor countries in the Paris Club, in order to ensure sustainable debt service. A debtor
country receiving such temporary support for overcoming the liquidity problem will implement
economic restructuring programs agreed upon with the IMF to acquire sustainable debt service capacity.
As for the probability of repayment for the loans rescheduled in the Paris Club, this needs toreflect their nature as official credit, whereby the above international framework provides an assetsecuring mechanism which is not found with private financial institutions. Nevertheless, to facilitatecomparison between JBIC and private financial institutions, JBIC, in principle, treats the loans
rescheduled in the Paris Club and whose debtor countries are categorized as “needs attention” in its self
assessment of asset quality as loans assets required to be disclosed, classifying them either as restructuredloans (under the Banking Law of Japan) or substandard loans (under the Financial Revitalization Law).
3

<Risk-Monitored Loans>
In the following table, loans were classified based on self-assessment on asset quality and inaccordance with the disclosure standard of risk-monitored loans adopted by private financial institutions
under the relevant regulations of the Banking Law of Japan.
(Unit: hundred millions of yen, %)<The Bank Account>

Total Amounts ofMonitored Loans

Ratio to Total Loans

Risk-Bankrupt Loans
Non-Accrual Loans
Past Due Loans (Threemonths or more)
Restructured Loans
TotalAmounts
Outstanding Loansof

As of the endof March 2005

Change fromthe end ofMarch 2004

As of the endof March 2004

End ofMarch 2005

End ofMarch 2004

14,409△132

14,542

7.51%

7.53%

－△00－

0.00%

3,885

1,205

2,680

2.03%

1.39%

27

△675

702

0.01%

0.36%

10,497△66111,158

5.47%

5.78%

191,874△1,188

193,062100.00%100.00%(Unit: hundred millions of yen, %)<International Financial
Account>

Total Amounts ofMonitored Loans

Risk-Bankrupt Loans
Non-Accrual Loans
Past Due Loans (Threemonths or more)
Restructured Loans
TotalAmounts
Outstanding LoansofRatio to Total Loans
As of the endof March 2005

Change fromthe end ofMarch 2004

As of the endof March 2004

End ofMarch 2005

End ofMarch 2004

5,939

△238

6,177

7.03%

7.08%

－△00－

0.00%

2,657493

2,164

3.15%

2.48%

27

△133

160

0.03%

0.18%

3,254

△597

3,852

3.85%

4.41%

84,466△2,81087,277100.00%100.00%(Unit: hundred millions of yen, %)<Overseas Economic
Cooperation Account >Total Amounts ofMonitored Loans

Risk-Bankrupt Loans
Non-Accrual Loans
Past Due Loans (Threemonths or more)
Restructured Loans
TotalAmounts
Outstanding LoansofRatio to Total Loans
As of the endof March 2005

Change fromthe end ofMarch 2004

As of the endof March 2004

End ofMarch 2005

End ofMarch 2004

8,470

105

8,365

7.89%

7.91%

－－－－－

1,227711

515

1.14%

0.49%

－△542542－

0.51%

7,242

△637,306

6.74%

6.91%

107,407

1,622

105,785

100.00%100.00%4

< Loan Assets Required to be Disclosed under the FRL>
In the following table, loan assets were classified based on self-assessment on asset quality
and in accordance with disclosure requirements set forth in the Financial Revitalization Law (FRL).
(Unit: hundred millions of yen, %)<The Bank Account>

Ratio to Total Loans
As of the endof March 2005

Change fromthe end ofMarch 2004

As of the endof March 2004

End ofMarch 2005

End ofMarch 2004

14,411△143

14,554

7.11%

7.20%

697

13683

0.34%

0.34%

Doubtful Assets

3,189

1,179

2,009

1.57%

0.99%

Substandard Loans

10,524△1,337

11,861

5.20%

5.87%

Normal Assets

188,148546

187,601

92.89%

92.80%

Total

202,559403

202,156

100.00%100.00%Credits required to bedisclosed under the FRL
Bankrupt and Quasibankrupt Assets(Unit: hundred millions of yen, %)<International Financial
Account>

Ratio to Total Loans
As of the endof March 2005

Change fromthe end ofMarch 2004

As of the endof March 2004

End ofMarch 2005

End ofMarch 2004

5,940

△248

6,189

6.29%

6.48%

697

13683

0.74%

0.72%

Doubtful Assets

1,961

468

1,493

2.08%

1.56%

Substandard Loans

3,281

△731

4,012

3.48%

4.20%

Normal Assets

88,469△916

89,38693.71%

93.52%

Total

94,410△1,16595,576100.00%100.00%Credits required to bedisclosed under the FRL
Bankrupt and Quasibankrupt Assets(Unit: hundred millions of yen, %)<Overseas Economic
Cooperation Account>

Ratio to Total Loans
As of the endof March 2005

Change fromthe end ofMarch 2004

As of the endof March 2004

End ofMarch 2005End ofMarch 2004

8,470

105

8,365

7.83%

7.85%

－－－－－

Doubtful Assets

1,227

711

515

1.14%

0.48%

Substandard Loans

7,242

△606

7,849

6.70%

7.36%

Normal Assets

99,678

1,463

98,21592.17%

92.15%

Total

108,148

1,568

106,580

100.00%100.00%Credits required to bedisclosed under the FRL
Bankrupt and Quasibankrupt Assets

End5