Japan Bank for International Cooperation
Summary of Japanese GAAP-Based Financial Statements forFiscal Year Ending March 2007
Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) made public
its financial statements for the fiscal year ending March 2007 in accordance with generally accepted
accounting principles and practices for Japanese private corporations (Japanese GAAP) on June 29, 2007.
In order to ensure its objectivity, JBIC obtained an auditor’s report from ERNST & YOUNG
SHINNIHON 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 2007 are as follows.

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 low and stable interest rates
in recent years have enabled JBIC to post consistently robust levels of net interest income. As there wasno significant change in this trend during FY2007, net operating income of the International Financial
Account amounted to 49.7 billion yen, the Overseas Economic Cooperation Account 152.6 billion yen
and The Bank Account 202.3 billion yen. Net ordinary income, subsequent to provision for allowance forpossible loan losses and other ordinary gain and loss, of the International Financial Account amounted to49.8 billion yen, the Overseas Economic Cooperation Account 151.3 billion yen and The Bank Account201.1 billion yen. Due to extraordinary income composed mainly of reversal for possible loan losses forsovereign debtors and a grant provided by the Japanese government, net income of the International
Financial Account amounted to 69.5 billion yen, the Overseas Economic Cooperation Account 204.3
billion yen and The Bank Account 273.9 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 under the “Changes of the Debt Relief Method”
announced in FY2002. (30.0 billion yen for FY2007)<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)
Provision for General Allowance for Possible Loan Losses
Other Ordinary Gain/Loss (△)
Net gain/loss on stocks
Write-off of Loans
Provision for Specific Allowance for
Possible Loan Losses
Provision for Allowance for Possible Losseson Specific Overseas Loans
OthersNet Ordinary Income
Net Extraordinary Income
Grant from general account
Recovery of Written-off Claims
Reversal of Allowance for Possible LoanLosses
Net Income

1

Fiscal Year ending
March 2007
2,283
2,259
24
△1△260Fiscal Year ending
March 2006
2,643
2,586
2927
△226

2,023

2,416−△12△15−−1△2−−−−−

32,0117273002632,417
678
300
32402346

2,739

3,095

<International Financial Account>(Unit: hundred millions of yen)
Fiscal Year ending
March 2007

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)
Provision for General Allowance for Possible Loan Losses
Other Ordinary Gain/Loss (△)
Net gain/loss on stocks
Write-off of Loans
Provision for Specific Allowance for
Possible Loan Losses
Provision for Allowance for Possible Losseson Specific Overseas Loans
OthersNet Ordinary Income
Net Extraordinary Income
Recovery of Written-off Claims
Reversal of allowance for possible loanlosses
Net Income<Overseas Economic Cooperation Account>

Fiscal Year ending
March 200665960257△1△1621,005931
4926△141497864−
2−−61△151−−−△168−152498197
1827742324179−695797(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)
Provision for General Allowance for Possible Loan Losses
Other Ordinary Gain/Loss (△)
Net gain/loss on stocks
Write-off of Loans
Provision for Specific Allowance forPossible Loan Losses
Provision for Allowance for Possible Losseson Specific Overseas Loans
OthersNet Ordinary Income
Net Extraordinary Income
Grant from General Account
Recovery of Written-off Claims
Reversal of Allowance for Possible LoanLosses
Net Income

Fiscal Year ending
March 2007
1,624
1,657
△330
△98

Fiscal Year ending
March 2006

1,526

1,552−△13△15−−△1△2−−−−−

11,513530300811,552746300
8223

438

2,0432,298(Note) General allowance for possible loan losses is the allowance for claims on debtors other thanBankrupt Borrowers, Substantially Bankrupt Borrowers and Potentially Bankrupt Borrowers.

21,6371,656△201△85II. Assets, Liabilities and Capital
As of March 31, 2007, the International Financial Account had total assets of 9,736.9 billion yen(decreased 126.7 billion yen from the previous fiscal year), total liabilities of 8,058.4 billion yen(decreased 159.1 billion yen from the previous fiscal year), and total net assets of 1,678.5 billion yen.
The Overseas Economic Cooperation Account had total assets of 11,085.8 billion yen (increased 51.6
billion yen from the previous fiscal year), total liabilities of 3,735.4 billion yen (decreased 318.6 billion
yen from the previous fiscal year), and total net assets of 7,350.4 billion yen. Overall, the Bank had total
assets of 20,822.7 billion yen (decreased 75.1 billion yen from the previous fiscal year), total liabilities of
11,793.8 billion yen (decreased 477.6 billion yen from the previous fiscal year), and total net assets of9,028.9 billion yen.

(Unit: hundred millions of yen)
As of March 31, 2007

As of March 31, 2006

208,227

97,369Overseas
Economic
Cooperation
Account
110,858

208,978

98,636

Overseas
Economic
Cooperation
Account
110,342

3,290

2,607

683

6,555

6,368

187

1,101

8

1,093

1,195

4

1,191

188,288

78,885

109,403

190,23680,800109,436

2,612

1,982

629

2,760

2,052

709

14,97014,970−

10,661

10,661−△2,330△1,301△1,029△2,731△1,480△1,252

117,938

80,58437,354

122,714

82,17440,540Bonds and Notes19,761

19,761−

20,54020,440100

Borrowings

80,94843,80037,14889,26849,06640,202

2,087

1,946

141

2,071

1,900

171

14,97014,970−

10,661

10,661−−−−

86,264

16,46269,802−−−80,511

9,855

70,656

−

−

−

5,752

6,607

△855

90,28982,17016,785
9,855

73,50472,315

−
−

−
−

−
−

8,130

6,941

1,189

−

−

−

△11

△11−

−−

−

The Bank
Account
Total Assets
Cash and Due from
Banks
Securities
Loans
Miscellaneous Assets
Customer’s Liabilities for
Acceptances andGuarantees
Allowance for PossibleLoan Losses
Total Liabilities

Miscellaneous Liabilities
Acceptances andGuarantees
Total Capital and RetainedEarnings
CapitalRetained Earnings andReserve
Total Net Assets
CapitalRetained Earnings andReserve
Valuation andTranslation Adjustments

International
Financial
Account

3The Bank
Account

International
Financial
Account

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 ERNST & YOUNG SHINNIHON based on thePractical Guidelines for Examining Internal Control Regarding Self-Assessment of Assets in Banks andOther 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
30, 1999).
One characteristic of JBIC’s operations is that a considerable portion of its loans is official
credit for the governments of developing countries. Thus, when an indebted country is temporarily unable
to service debt due to economic difficulties, debt rescheduling will sometimes take place, based on aninternational 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 loan assets required to be disclosed, classifying them either as restructuredloans (under the Banking Law of Japan) or substandard loans (under the Financial Revitalization Law).

4

<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 2007

Change fromthe end ofMarch 2006

As of the endof March 2006

End ofMarch 2007

End ofMarch 2006

5,489

△803

6,292

2.92

3.31473−4730.25

0.25

2,035

△500

2,535

1.08

1.33－

△2727−

0.01

2,981

△276

3,257

1.58

1.71

188,288△1,948190,236

100.00100.00(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 2007

Change fromthe end ofMarch 2006

As of the endof March 2006

End ofMarch 2007

End ofMarch 2006

2,868

△607

3,475

3.64

4.30473−473

0.60

0.59

1,266

△298

1,565

1.61

1.94－

△2727－

0.03

1,129

△281

1,410

1.43

1.75

78,885△1,91580,800100.00100.00(Unit: hundred millions of yen, %)<Overseas Economic
Cooperation Account >Ratio to Total Loans
As of the endof March 2007

Change fromthe end ofMarch 2006

As of the endof March 2006

End ofMarch 2007

End ofMarch 2006

2,621

△196

2,817

2.40

2.57

Bankrupt Loans－－－－－Non-Accrual Loans

769△201970

0.70

0.89

Past Due Loans (Threemonths or more)－－－－－

1,85251,847

1.69

1.69

109,403△33109,436

100.00100.00Total Amounts ofMonitored Loans

Risk-Restructured Loans
TotalAmounts
Outstanding Loansof5

< 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 2007

Change fromthe end ofMarch 2006

As of the endof March 2006End ofMarch 2007

End ofMarch 2006

5,489

△803

6,292

2.68

3.11

477

0477

0.23

0.24

Doubtful Assets

2,032

△500

2,531

0.99

1.25

Substandard Loans

2,981

△304

3,284

1.46

1.62

Normal Assets

199,150

3,051

196,099

97.32

96.89

Total

204,6392,248

202,391

100.00100.00Credits 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 2007

Change fromthe end ofMarch 2006

As of the endof March 2006

End ofMarch 2007

End ofMarch 2006

2,868

△607

3,475

3.03

3.77

4770477

0.50

0.52

Doubtful Assets

1,263

△298

1,561

1.33

1.69

Substandard Loans

1,129

△309

1,437

1.19

1.56

Normal Assets

91,753

2,953

88,800

96.97

96.23

Total

94,621

2,346

92,275100.00100.00Credits 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 2007

Change fromthe end ofMarch 2006

As of the endof March 2006

End ofMarch 2007

End ofMarch 2006

2,621

△196

2,817

2.38

2.56

－－－－－

Doubtful Assets

769△201970

0.70

0.88

Substandard Loans

1,852

5

1,847

1.68

1.68

Normal Assets

107,39798

107,299

97.62

97.44

Total

110,017△98

110,115100.00100.00Credits required to bedisclosed under the FRL
Bankrupt and Quasibankrupt Assets

End6