Japan Bank for International Cooperation
Summary of Japanese GAAP-Based Financial Statements for First Half of FY2005
Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) made public
its financial statements for the first half of FY2005 in accordance with generally accepted accounting
principles and practices for Japanese private corporations (Japanese GAAP) on January 23, 2006. Inorder 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 first half ofFY2005 are as follows.
(Unit: millions of yen)First Half of FY2004

First Half of FY2005

Ordinary Revenue
Ordinary Expenses
Net Ordinary Income
Net Extraordinary Income
Net Income

The Bank
Account

International
Financial
Account

Overseas
Economic
Cooperation
Account

The Bank
Account

International
Financial
Account

Overseas
Economic
Cooperation
Account

291,988
161,251
130,736
36,545167,282

166,156
116,921
49,2342,268
51,503125,831
51,697
74,13341,644
115,778259,613
166,261
93,352
15,671109,023

134,110112,137
21,97327
22,001

125,502
59,033
66,46920,55287,022(Unit: millions of yen, %)As of March 31, 2005

As of September 30, 2005
The Bank
Account

International
Financial
Account

Overseas
Economic
Cooperation
Account

The Bank
Account

International
Financial
Account

Overseas
Economic
Cooperation
Account

20,628,787

9,806,065

10,822,722

20,653,038

9,827,312

10,825,726

461,133

448,285

12,848170,029

106,105

63,924

119,302212

119,090

119,980103

119,877

18,891,945

8,172,388

10,719,556

19,187,414

8,446,621

10,740,793

440,255

333,221

107,034

599,982

523,350

76,631

975,429975,429－

899,389

899,389－△288,927△146,172△142,754△353,664△171,153△182,511

12,262,152

8,188,081

4,074,070

12,477,695

8,227,942

4,249,752

Bonds and Notes

1,802,685

1,777,685

25,0001,776,254

1,751,254

25,000Borrowings

9,240,544

5,215,435

4,025,109

9,559,735

5,359,276

4,200,459

225,304

208,255

17,049224,079

206,716

17,363

975,429

975,429－

899,389

899,389－

8,366,635

1,617,983

6,748,652

8,175,343

1,599,369

6,575,973

7,933,644

985,500

6,948,144

7,876,744

985,500

6,891,244

432,991

632,483△199,492

298,598

613,869△315,270

40.6

16.5

62.4

39.6

16.3

60.7

Total Assets
Cash and Due fromBanksSecurities
Loans
Miscellaneous Assets
Customer’s Liabilities
for Acceptances andGuarantees
Allowance for Possible
Loan Losses

Total Liabilities

Miscellaneous Liabilities
Acceptances andGuarantees

Total Capital and Retained
Earnings
CapitalRetained Earnings andReserve

Capital and 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 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 the first half of FY2005, operating income of the International
Financial Account amounted to 49.2 billion yen, the Overseas Economic Cooperation Account 74.1
billion yen and The Bank Account 130.7 billion yen. Due to extraordinary income composed mainly ofreversal for possible loan losses caused by the agreement of debt reduction measure for sovereign debtors
among the creditor countries (the Paris Club creditors) and a grant provided by the Japanese government,
net income of the International Financial Account amounted to 51.5 billion yen, the Overseas Economic
Cooperation Account 115.7 billion yen and The Bank Account 167.2 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. (15.0 billion yen for the first half of FY2005)<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 generalallowance for possible loan losses)
Other Ordinary Gain/Loss (△)
Provision for General Allowance for
Possible Loan Losses
Write-off of Loans
Gain on sale of Securities
Write-off of Securities
OthersNet Ordinary Income
Net Extraordinary Income
Net Income<International Financial Account>

First Half of FY2005
1,418
1,3723114△111

First Half of FY2004
1,167
1,1331518△1151,307

1,052△0△118－△119－0△21
1,307
365
1,672－－－1933
156
1,090

(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 generalallowance for possible loan losses)
Other Ordinary Gain/Loss (△)
Provision for General Allowance for
Possible Loan Losses
Write-off of Loans
Gain on sale of Securities
Write-off of Securities
OthersNet Ordinary Income
Net Extraordinary Income
Net Income

2First Half of FY2005
6345853414△69

First Half of FY2004
4594221918△72565387△72△168△73△168－－－0492
22515－－－02190220

<Overseas Economic Cooperation 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 generalallowance for possible loan losses)
Other Ordinary Gain/Loss (△)
Provision for General Allowance for
Possible Loan Losses
Write-off of Loans
Gain on sale of Securities
Write-off of Securities
OthersNet Ordinary Income
Net Extraordinary Income
Net Income

First Half of FY2005
784786△20△41First Half of FY2004
707710△30△43742664△10－－－0△20741
4161,157－－－0664205870(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 September 30, 2005, the International Financial Account had total assets of 9,806.0
billion yen (decreased 21.2 billion yen from the previous fiscal year ), total liabilities of 8,188.0 billion
yen (decreased 39.8 billion yen from the previous fiscal year ), and total capital and retained earnings of
1,617.9 billion yen (increased 18.6 billion yen from the previous fiscal year ). The Overseas Economic
Cooperation Account had total assets of 10,822.7 billion yen (decreased 3.0 billion yen from the previous
fiscal year), total liabilities of 4,074.0 billion yen (decreased 175.6 billion yen from the previous fiscalyear), and total capital and retained earnings of 6,748.6 billion yen (increased 172.6 billion yen from theprevious fiscal year ). Overall, the Bank had total assets of 20,628.7 billion yen (decreased 24.2 billion
yen from the previous fiscal year ), total liabilities of 12,262.1 billion yen (decreased 215.5 billion yen
from the previous fiscal year ), and total capital and retained earnings of 8,366.6 billion yen (increased191.2 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 LoansofAs of the endof September
2005

Change fromthe end ofMarch 2005

As of the endof March 2005

End ofSeptember2005

End ofMarch 2005

13,336△1,073

14,409

7.06%

7.51%

713

713－

0.38%

－

2,868

△1,017

3,885

1.52%

2.03%

10275

27

0.05%

0.01%

9,652

△844

10,497

5.11%

5.47%

188,919△2,954

191,874

100.00%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 LoansAs of the endof September
2005

Change fromthe end ofMarch 2005

As of the endof March 2005

End ofSeptember
2005

End ofMarch 2005

4,998

△940

5,939

6.12%

7.03%

713

713

－

0.87%

－

1,776

△810

2,657

2.17%

3.15%

27－

27

0.03%

0.03%

2,481

△773

3,254

3.04%

3.85%

81,723△2,742

84,466100.00%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 LoansTotalAmounts
Outstanding LoansofRatio to Total Loans
As of the endof September
2005

Change fromthe end ofMarch 2005

As of the endof March 2005

End ofSeptember
2005

End ofMarch 2005

8,337

△132

8,470

7.78%

7.89%

－－－－－

1,091

△136

1,227

1.02%

1.14%

75

75

－

0.07%

－

7,171

△71

7,242

6.69%

6.74%

107,195△212

107,407100.00%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 September
2005

Change fromthe end ofMarch 2005

As of the endof March 2005

End ofSeptember
2005

End ofMarch 2005

13,336△1,074

14,411

6.65%

7.11%

716

18

697

0.36%

0.34%

Doubtful Assets

2,865

△324

3,189

1.43%

1.57%

Substandard Loans

9,754

△769

10,524

4.86%

5.20%

Normal Assets

187,361△786

188,148

93.35%

92.89%

Total200,698△1,861

202,559

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 September
2005

Change fromthe end ofMarch 2005

As of the endof March 2005

End ofSeptember
2005

End ofMarch 2005

4,998

△942

5,940

5.41%

6.29%

716

18697

0.78%

0.74%

Doubtful Assets

1,773

△187

1,961

1.92%

2.08%

Substandard Loans

2,508

△773

3,281

2.71%

3.48%

Normal Assets

87,455△1,01388,46994.59%

93.71%

Total

92,454△1,95694,410

100.00%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 September
2005

Change fromthe end ofMarch 2005

As of the endof March 2005

End ofSeptember
2005

End ofMarch 2005

8,337

△132

8,470

7.70%

7.83%

－－－－－

Doubtful Assets

1,091

△136

1,227

1.01%

1.14%

Substandard Loans

7,246

3

7,242

6.69%

6.70%

Normal Assets

99,905

227

99,67892.30%

92.17%

Total

108,243

94108,148100.00%

100.00%Credits required to bedisclosed under the FRL
Bankrupt and Quasibankrupt AssetsEnd5