― Consolidated Five-Year Summary ―― Consolidated Balance Sheet ―THE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2021

MissionTHE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIESAs of March 31

Millions of Yen
2020

2019

2018

2017

69,877 ¥
11,553(8,117)67,886 ¥11,458(2,186)

65,217 ¥
11,345(3,104)

69,644 ¥10,963(7,869)67,678
10,973(5,213)

16,46818,261

17,67018,314

16,114¥9,839,581 ¥8,770,037 ¥8,627,510 ¥8,718,097 ¥8,649,396
8,527,481 7,865,991 7,872,834 7,946,100 7,805,860
5,088,570 4,886,221 4,718,942 4,621,062 4,443,883
2,922,506
447,436
24,6582,978,130
489,077
24,6583,146,865
490,737
24,6583,262,638
468,195
24,658

Yen
2019

2018

2017

¥ 222.89¥ 246.97¥ 237.90

6,947.19
50.00

6,057.30
50.00

6,582.31
47.50¥ 246.87
246.45
6,613.28
45.00¥ 215.73
214.74
6,306.73
45.00

10.39

10.31

10.38

10.43

10.73

Notes: 1. The national consumption tax and the local consumption tax are excluded from transaction amounts.
2. The Bank’s capital adequacy ratio on the domestic standard is accompanied by the revision of Article 14,
Paragraph 2, of the Banking Law of Japan, in line with enforcement of the related law for financial system
reform.
3. On October 1, 2017, the Bank conducted consolidation of shares at a ratio of five shares to one share. Per
share information is computed as if the share consolidation was conducted on April 1, 2016.

LIABILITIES:
Deposits (Notes 11, 13 and 26)¥8,527,481
Call money and bills sold
25,869
Payables under securities lending transactions (Note 11)
Borrowed money (Notes 11, 14 and 26)
604,679
Foreign exchange liabilities (Note 7)
155
Liability for employees’ retirement benefits (Note 15)
17,102
Reserve for stock-based benefits (Note 17)
817
Reserve for reimbursement of deposits
311
Reserve for contingent losses
804
Deferred tax liabilities (Note 23)
22,037
Acceptances and guarantees (Notes 10 and 28)
43,735
Other liabilities (Notes 16 and 27)
83,251
Total liabilities
9,326,243
EQUITY (Notes 17, 18 and 31):
Common stock—authorized, 268,800,000 shares;
issued, 76,655,746 shares in 2021 and 2020
24,658
Capital surplus
20,517Retained earnings
374,218
Less: treasury stock—at cost, 2,764,422 shares and(6,972)
2,788,464 shares in 2021 and 2020, respectively
Accumulated other comprehensive income:Unrealized gains on available-for-sale securities (Note 4) 106,557
Deferred losses on derivatives under hedge accounting(Note 27)
(375)
(5,265)
Defined retirement benefit plans (Note 15)
Total equity
513,337
TOTAL¥9,839,581

2020¥ 747,105
429
4,000
18,87382,3442,903,632
4,886,221
9,528$ 12,391,572

19,261

177,373

8,208
19,315
56
282
4,388

71,176
174,446451
2,339
52,226

120
264
4,173

758
2,366
8,888

45,25879,792(63,220)¥8,770,037

395,041
872,260(554,204)$ 88,877,075¥7,865,991
8,706
11,986285,901116
25,539735
337
860$ 77,025,390

36,130186,315
983,660
28,060,175
45,963,056
52,97645,25877,167
8,322,600

233,664
5,461,828
1,400
154,475
7,379
2,809
7,262
199,051
395,041
751,973
84,240,294

24,65820,517
361,462

222,726
185,3223,380,164(7,040)(62,975)

56,207

962,487(826)(7,541)
447,436¥8,770,037(3,387)(47,556)
4,636,771$ 88,877,075

Financial
Section2020

ASSETS:Cash and due from banks (Notes 3 and 26)¥1,371,871
Call loans and bills bought
Debt purchased
4,000
Trading account securities (Note 4)
20,627
Money held in trust (Notes 5 and 26)
108,901
Investment securities (Notes 4, 10, 11, 26, 27 and 28) 3,106,542
Loans and bills discounted (Notes 6, 12, 26, 27 and 28) 5,088,570
Foreign exchange assets (Note 7)
5,865
Lease receivables and investments in leases(Notes 25 and 28)
19,637
Tangible fixed assets (Notes 8, 9 and 16):
Buildings
7,880
Land
19,313
Lease assets
50
Construction in progress
259
Other tangible fixed assets
5,782
Intangible fixed assets:
Software84
Other intangible fixed assets
262
Deferred tax assets (Note 23)984
Customers’ liabilities for acceptances andguarantees (Notes 10 and 28)
43,735
Other assets (Notes 11 and 27)
96,568(61,356)
Reserve for loan losses
TOTAL¥9,839,581

Company
Information

Per share of common stock
Basic net income
Diluted net income
EquityCash dividends
Capital adequacy ratio (%)
Domestic standard

2021

Millions of Yen

Strategy

3,127,169
513,337
24,6582021

Thousands of
U.S. Dollars(Note 1)2021

Va l u e

At the fiscal year-end
Total assets
Deposits
Loans and bills discounted
Trading account securities andinvestment securities
EquityCommon stock

2021

VisionFor the fiscal year
Net interest income¥
Net fees and commissions
Net other operating (loss) income
Net income attributable to owners of
the parent

See notes to consolidated financial statements.

56

THE 77 BANK INTEGRATED REPORT57

― Consolidated Statement of Income ―― Consolidated Statement of Changes in Equity ―¥ 41,616¥ 41,956$ 375,901

29,186406
17,977
13,99011,836
3,798
1,163
119,976

28,031242
17,801
12,025

263,625
3,667
162,379
126,366
106,90934,305
10,504
1,083,696

2021

Millions of Yen

4,967
10,392

1,510
116,926

2,935
2,456
6,629
58,025
199,683
497,732
64,366
27,612859,470
224,216

INCOME TAXES (Note 23):
Current
Deferred
Total income taxes

5,758
2,595
8,354

8,047
(133)
7,913

52,00923,43975,458NET INCOME
16,468NET INCOME ATTRIBUTABLE TO OWNERS OF THE PARENT ¥ 16,468

18,261¥ 18,261

148,748$ 148,748

PER SHARE OF COMMON STOCK (Note 30):
Basic net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

Yen¥222.89
50.00

Retained
Earnings

BALANCE, APRIL 1, 2019
Net income attributableto owners of the parent
Cash dividends, ¥50.00
per share
Purchase of treasury stock
Sales of treasury stock
Net change in the year

74,302¥24,658¥20,517¥346,926

BALANCE, MARCH 31, 2020
Net income attributableto owners of the parent
Cash dividends, ¥50.00
per share
Purchase of treasury stock
Sales of treasury stock
Net change in the year
BALANCE, MARCH 31, 2021

73,867

U.S. Dollars¥246.97
50.00

$2.01
0.45

― Consolidated Statement of Comprehensive Income ―THE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIES
Year Ended March 31, 2021

2021

CapitalSurplusMillions of Yen

2020

Thousands of
U.S. Dollars(Note 1)2021

NET INCOME¥ 16,468
OTHER COMPREHENSIVE INCOME (LOSS) (Note 24):
50,350
Unrealized gains (losses) on available-for-sale securities
Deferred gains on derivatives under hedge accounting
450
Defined retirement benefit plans
2,276
Total other comprehensive income (loss)
53,077¥ 18,261$ 148,748(54,901)624(1,251)(55,528)454,791
4,064
20,558479,423COMPREHENSIVE INCOME (LOSS)¥ 69,546¥(37,267)$ 628,181

TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO―
Owners of the parent¥ 69,546¥(37,267)$ 628,181

BALANCE, MARCH 31, 2020
Net income attributableto owners of theparentCash dividends, $0.45
per share
Purchase of treasury
stock
Sales of treasury stock
Net change in the year
BALANCE, MARCH 31, 2021¥(6,290)(3,725)

361,462(7,040)(54,901)624(1,251)(802)
153(55,528)

56,207(826)(7,541)

447,436

16,46816,468(3,713)(3,713)

(1)

(2)
70

25
¥24,658¥(6,972)

50,350¥106,557450¥ (375)2,276¥(5,265)¥20,517¥374,218

CommonStockCapitalSurplusThousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income
Deferred
Unrealized Losses on
Gains on Derivatives Defined
Retained
Treasury Available-for- under Hedge Retirement
Earnings
Stock Sale Securities Accounting Benefit Plans$222,726$185,322 $3,264,944$222,726¥489,077(3,725)56

20,517¥(1,451)

18,261(802)
153

24,658¥111,108

18,261(490)

73,891¥(6,391)

Total
Equity$(63,589)$507,695$(7,460)(2)
70
53,077¥513,337

Total
Equity$(68,114) $4,041,513

148,748

148,748(33,538)(33,538)$185,322 $3,380,164

(18)

(18)

632

632
20,558479,423$(47,556) $4,636,771$(62,975)

454,791$962,487

4,064$(3,387)

Financial
Section

762
399
1,182
6,343
14,211
58,141
6,644
3,066
90,751
26,175

CommonStock

Company
Information

325
272
734
6,424
22,107
55,104
7,126
3,057
95,152
24,823

Number of
Shares ofCommonStock
Outstanding

Millions of Yen
Accumulated Other Comprehensive Income
Deferred
Unrealized Losses on
Gains on Derivatives Defined
Treasury Available-for- under Hedge Retirement
Stock Sale Securities Accounting Benefit Plans

Strategy

EXPENSES:Interest expense:
Interest on deposits
Interest on borrowings and rediscounts
Other
Fees and commissions
Other operating expenses (Note 21)
General and administrative expenses
Provision for reserve for loan losses
Other expenses (Notes 9 and 22)
Total expenses
INCOME BEFORE INCOME TAXES

Thousands

Va l u e

2020

Thousands of
U.S. Dollars(Note 1)
2021

VisionINCOME:Interest income:Interest on loans and discounts
Interest and dividends on trading account andinvestment securities
Other
Fees and commissions (Note 28)
Other operating income (Note 19)
Gains on sales of stocks and other securities
Gains on sales of money held in trust
Other income (Note 20)
Total income

THE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIES
Year Ended March 31, 2021

MissionTHE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIES
Year Ended March 31, 2021

See notes to consolidated financial statements.

See notes to consolidated financial statements.

58

THE 77 BANK INTEGRATED REPORT59

― Consolidated Statement of Cash Flows ―― Notes to Consolidated Financial Statements ―THE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIES
Year Ended March 31, 2021

Millions of Yen
2020

224,216(645,953)
37,056
601,904(7,326,844)
1,348,694
4,622,825(180,652)
31,704(41,775)
370(171,121)(1,545,668)

FINANCING ACTIVITIES:(2)
Purchases of treasury stock(3,716)
Dividends paid
(3,718)Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS
16
NET INCREASE IN CASH AND CASH EQUIVALENTS
629,584
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
737,406
CASH AND CASH EQUIVALENTS, END OF YEAR (Note 3)¥ 1,366,991(802)(3,718)(4,521)(12)
32,423704,983¥ 737,406(18)(33,565)(33,583)144
5,686,785
6,660,699$12,347,493

2. SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES
a. Consolidation—The consolidated financial statements
include the accounts of the Bank and its significant
subsidiaries (collectively, the “Companies”). There were
five consolidated subsidiaries as of March 31, 2021 and2020.
Under the control and influence concepts, thosecompanies in which the Bank, directly or indirectly, is able
to exercise control over operations are fully consolidated.
All significant intercompany balances and transactions
have been eliminated in consolidation. All material
unrealized profits included in assets resulting fromtransactions within the Companies are eliminated inconsolidation.
(1) Scope of consolidation
Consolidated Subsidiaries
There was no change in the scope of consolidation
during the fiscal year ended March 31, 2021.

(2) Equity method
Unconsolidated Subsidiaries Not Accounted for by
the Equity Method
77 Capital Co., Ltd.
77 New Business Investment Limited Partnership
77 Strategic Investment Limited Partnership
77 Capital Investment Limited Partnership 2
These companies are excluded from the scope ofequity method accounting because they are not material
to the consolidated financial statements in terms of net
income (corresponding to the Bank’s share), retained
earnings (corresponding to the Bank’s share) andaccumulated other comprehensive income(corresponding to the Bank’s share).
77 Capital Investment Limited Partnership 2 has been
included in unconsolidated subsidiaries not accounted forby the equity method from the fiscal year ended March
31, 2021, since it was newly incorporated.
b. Business Combinations—Business combinations areaccounted for using the purchase method. Acquisitionrelated costs, such as advisory fees or professional fees,
are accounted for as expenses in the periods in which thecosts are incurred. If the initial accounting for a businesscombination is incomplete by the end of the reporting
period in which the business combination occurs, anacquirer shall report in its financial statements provisionalamounts for the items for which the accounting is
incomplete. During the measurement period, which shallnot exceed one year from the acquisition, the acquirer
shall retrospectively adjust the provisional amounts
recognized at the acquisition date to reflect new
information obtained about facts and circumstances thatexisted as of the acquisition date and that would haveaffected the measurement of the amounts recognized asof that date. Such adjustments shall be recognized as if
the accounting for the business combination had been
completed at the acquisition date. A parent’s ownershipinterest in a subsidiary might change if the parent
purchases or sells ownership interests in its subsidiary.
The carrying amount of noncontrolling interest is adjusted
to reflect the change in the parent’s ownership interest in
its subsidiary while the parent retains its controllinginterest in its subsidiary. Any difference between the fairvalue of the consideration received or paid and theamount by which the noncontrolling interest is adjusted isaccounted for as capital surplus as long as the parent
retains control over its subsidiary.

THE 77 BANK INTEGRATED REPORT

Financial
Section(86,685)
29,807
2,637(16,836)
(234)
(505)
740
(46,662)(643,202)
12,031
17,965(27,757)(33,267)641(1,827,739)
5,974,970
2,879,387
43,5103,874(78,637)
125,399(15,834)
33,077343(3,396)675,169(15,481)
38,343
7,041,676$ 7,265,892

Company
Information(7,075)
3,227
126
2,351
(127)
79
(15)
(161)
(70,229)
2,343(2,191)(8,967)3,022
49(167,278)(6,843)
169,257(3,656)152(7,398)(5,428)974(4,793)(222)(1,638)75,035(2,425)22,326(9,507)¥ 16,667

30,508(3,144)
32
(96)
(19)
20,289See notes to consolidated financial statements.
60(811,155)
149,314
511,793(20,000)
3,510(4,625)41$

Strategy

INVESTING ACTIVITIES:
Purchases of investment securities
Proceeds from sales of investment securities
Proceeds from maturity of investment securities
Increase in money held in trust
Proceeds from dispositions of money held in trust
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchases of intangible fixed assets
Payment for execution of asset retirement obligations
Net cash (used in) provided by investing activities¥ 26,175

The accompanying consolidated financial statements
have been prepared in accordance with the provisions set
forth in the Japanese Financial Instruments andExchange Act and its related accounting regulations andthe Enforcement Regulation for the Banking Law of Japan(the “Banking Law”), and in accordance with accounting
principles generally accepted in Japan, which are different
in certain respects as to the application and disclosure
requirements of International Financial ReportingStandards.
In preparing these consolidated financial statements,
certain reclassifications and rearrangements have been
made to the consolidated financial statements issued
domestically in order to present them in a form which ismore familiar to readers outside Japan. In addition,certain reclassifications have been made to the 2020
consolidated financial statements to conform to theclassifications used in 2021.
In accordance with the Japanese Financial Instruments
and Exchange Act and other relevant regulations, allJapanese yen figures in the consolidated financial
statements have been rounded down to the nearest
million yen, except for per share data. Accordingly, thetotal of each account may not be equal to the combined
total of individual items. Also, U.S. dollar amounts havebeen rounded down to the nearest thousand dollars.
The consolidated financial statements are stated inJapanese yen, the currency of the country in which The
77 Bank, Ltd. (the “Bank”) is incorporated and operates.
The translations of Japanese yen amounts into U.S.
dollar amounts are included solely for the convenience ofreaders outside Japan and have been made at the rate of¥110.71 to U.S.$1, the approximate rate of exchange asof March 31, 2021. Such translations should not be
construed as representations that the Japanese yenamounts could be converted into U.S. dollars at that or
any other rate.

Unconsolidated Subsidiaries
77 Capital Co., Ltd.
77 New Business Investment Limited Partnership
77 Strategic Investment Limited Partnership
77 Capital Investment Limited Partnership 2
Unconsolidated subsidiaries are excluded from thescope of consolidation because they are not material tothe consolidated financial statements in terms of total
assets, income, net income (corresponding to the Bank’s
share), retained earnings (corresponding to the Bank’s
share) and accumulated other comprehensive income(corresponding to the Bank’s share).
77 Capital Investment Limited Partnership 2 has been
included in unconsolidated subsidiaries from the fiscal
year ended March 31, 2021, since it was newly
incorporated.

Va l u e

OPERATING ACTIVITIES:
Income before income taxes¥ 24,823
Adjustments for:(9,597)
Income taxes—paidDepreciation and amortization
3,300
Losses on impairment of fixed assets
292(1,864)
Net change in reserve for loan losses(26)
Net change in reserve for reimbursement of deposits(56)
Net change in reserve for contingent losses
Net change in reserve for stock-based benefits
82(5,166)
Net change in liability for employees’ retirement benefits(71,209)
Interest income
Interest expense
1,332
Losses (gains) on investment securities—net
1,989(3,073)
Gains on money held in trust—net(3,683)Foreign exchange (gains) losses —net
Losses on sales and disposals of fixed assets—net
71(202,349)
Net change in loans and bills discounted
Net change in deposits
661,489
318,777
Net change in borrowed money (except for subordinated loans)
4,817
Net change in due from banks (except for the Bank of Japan)
Net change in call loans and bills bought
429(8,706)
Net change in call money and bills soldNet change in payables under securities lending transactions
13,883(1,753)
Net change in trading account securities
Net change in foreign exchange assets
3,662
Net change in foreign exchange liabilities
38(376)
Net change in lease receivables and investments in leases
Interest received
74,748(1,714)
Interest paid
Other—net
4,245
Total adjustments
779,584
Net cash provided by operating activities—(Forward)¥ 804,407

1. BASIS OF PRESENTING CONSOLIDATEDFINANCIAL STATEMENTS

Vision2021

Thousands of
U.S. Dollars(Note 1)
2021

MissionTHE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIES
Year Ended March 31, 2021

61

Debtors who are legally or formallybankrupt

Virtuallybankrupt

Debtors who are virtually bankrupt,
experiencing serious financial difficultywith no prospect of a turnaround,although there are no existence of factsof legal or formal bankruptcy

Possiblybankrupt

Debtors who are in financial difficulty
and likely to become bankrupt in the
future, although they are not currently
bankrupt

CautionDebtors who have issues concerning
lending conditions, debtors who haveissues concerning the status offulfilment of obligations or debtors whoare in the red, experiencing sluggish or
unstable performances

Specialattention
NormalOf the debtors classified as caution,
those whose debts, either partially or
wholly, require special attention
Debtors whose performance isfavorable and who are considered tohave no specific issues regarding
financial conditions

2. The loss rate is in principle defined as the average rateof bad debts for the recent five base years, but
comparisons with the average rate of bad debts for the
recent two base years are also taken into account in
the calculation. Also, necessary adjustments are madeby referring to the average rate of bad debts for anumber of base years to appropriately incorporate therisk during the recession period.

k. Reserve for Reimbursement of Deposits—Reserve
for reimbursement of deposits which were derecognized
as liabilities is provided for the future estimated payments
for reimbursement claims on dormant deposit accounts
based on the historical reimbursement experience.
l. Reserve for Contingent Losses—Reserve forcontingent losses is provided for the future estimatedpayments of burden money to the Credit Guarantee
Corporations based on the historical experience ofsubrogation.
m. Employees’ Retirement and Pension Plans—In
calculation of projected benefit obligations, expected
benefits are attributed to periods on a benefit formulabasis. Treatment of prior service cost and actuarial gains
and losses is as follows:
Prior service cost is charged to expenses whenincurred.
Unrecognized actuarial gains and losses are amortizedby the straight-line method from the following fiscal year
after the fiscal year when they were incurred over adefinite period (10 years) with the employees’ averageremaining service period when incurred.

o. Leases
As a lessee
Finance lease transactions are capitalized to recognize
lease assets and lease obligations in the consolidatedbalance sheet.
As a lessor
All finance leases that are deemed to transfer ownershipof the leased property to the lessee are recognized aslease receivables, and all finance leases that are deemed
not to transfer ownership of the leased property to thelessee are recognized as investments in leases.
p. Income Taxes—The provision for income taxes iscomputed based on the pretax income included in the
consolidated statement of income. The asset and liability
approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of
temporary differences between the carrying amounts andthe tax bases of assets and liabilities. Deferred taxes aremeasured by applying currently enacted tax laws to thetemporary differences.

Financial
Sectionj. Reserve for Stock-Based Benefits—Reserve forstock-based benefits is provided for the grants of theBank’s shares to directors, etc. in accordance with thestock grant program based on the estimated stock-based
benefits liabilities as of the fiscal year end.

n. Asset Retirement Obligations—The asset retirement
obligation is recognized as the sum of the DCFs required
for the future asset retirement and is recorded in the
period in which the obligation is incurred if a reasonableestimate can be made. If a reasonable estimate of theasset retirement obligation cannot be made in the period
the asset retirement obligation is incurred, the liability
should be recognized when a reasonable estimate of theasset retirement obligation can be made. Upon initialrecognition of a liability for an asset retirement obligation,
an asset retirement cost is capitalized by increasing thecarrying amount of the related fixed asset by the amountof the liability. The asset retirement cost is subsequently
allocated to expense through depreciation over theremaining useful life of the asset. Over time, the liability is
accreted to its present value each period. Any subsequent
revisions to the timing or the amount of the original
estimate of undiscounted cash flows are reflected as anincrease or a decrease in the carrying amount of theliability and the capitalized amount of the related asset
retirement cost.

Company
Information

62(Notes)
1. Category of loans by debtor classification is defined as
below in compliance with the classification provided in“Practical Guideline on Self-Assessment of Assets andAudit of Bad Debts and Reserve for Loan Losses ofBanks and Other Financial Institutions” (the JapaneseInstitute of Certified Public Accountants (the “JICPA”)
Special Audit Committee Report No. 4 for Banks andOther Financial Institutions issued on October 8, 2020),
that is, “normal debtors,” “debtors requiring caution,”“possibly bankrupt debtors,” “virtually bankrupt debtors”
and “legally bankrupt debtors.”

Legallybankrupt

Consolidated subsidiaries apply a shortcut method
whereby the amount of the retirement benefits required tobe paid if all the employees voluntarily retired at the endof the fiscal year is regarded as projected benefit
obligations in determining the liability for employees’
retirement benefits and net periodic retirement benefit
costs.

Strategyf. Intangible Fixed Assets—The amortization of
intangible fixed assets is calculated using the straight-line
method. Capitalized costs of computer softwaredeveloped/obtained for internal use are amortized using
the straight-line method over the estimated useful lives offive years.

i. Reserve for Loan Losses—The Bank determines theamount of the reserve for loan losses by means ofmanagement’s judgment and assessment of future losses
based on internal rules for write offs and provisions.
For loans to borrowers classified as legally bankrupt or
virtually bankrupt, the Bank fully provides the net amountof loans and estimated collectible amounts by collateralor guarantees. Regarding loans to borrowers classified as
possibly bankrupt, a specific reserve is provided to thenecessary extent for the net amount of loans andestimated collectible amounts by collateral or guarantees.
For large debtors who are possibly bankrupt anddebtors requiring special attention, if the cash flows fromcollection of the principal and interest can be reasonably
estimated, the reserve is provided based on the difference
between the relevant cash flows discounted by the initial
contractual interest rates and the carrying amounts of theloans (the “DCF method”).
The reserve for other loan loss is recorded principallyat the amount of estimated losses over the next two or
three years. Estimated losses are determined by
calculating a loss rate based on the average of actual
loss ratio over the past certain period, which is calculatedwith credit loss experience over two or three years.
Adjustments are to be made as necessary in light of
future outlook and other factors.
All the loans are assessed by sales related department
in accordance with the self-assessment standard and theresults are audited by asset audit department
independent from the sales related department.
The Bank’s subsidiaries determine the reserve for loan
losses based on the actual loss ratio or estimatedcollectible amounts in accordance with the selfassessment standard.

Criteria

Va l u ee. Tangible Fixed Assets—Tangible fixed assets arestated at cost less accumulated depreciation and gains
deferred on the sale and replacement of certain assets.
Depreciation of tangible fixed assets, except for leaseassets, is mainly computed using the declining-balancemethod at rates based on the estimated useful lives of
the assets. The range of useful lives is principally from 5
to 31 years for buildings and from 4 to 20 years forequipment. Lease assets under finance leasetransactions, in which substantial ownership is notdeemed to have been transferred, are depreciated using
the straight-line method over the lease term. The salvage
value is zero or the guaranteed amounts if specified in
the lease contracts (see Note 2.o).

h. Foreign Currency Items—Assets and liabilities
denominated in foreign currencies held by the Bank at
year-end are translated into Japanese yen at the current
exchange rates in effect at each consolidated balance
sheet date. Exchange gains and losses are recognized in
the fiscal periods in which they occur.

Category

Visiond. Trading Account Securities, Investment Securities
and Money Held in Trust—Securities other thaninvestments in affiliates are classified into three
categories, based principally on the Companies’ intent, as
follows: (1) trading account securities, which are held forthe purpose of earning capital gains in the near term, arereported at fair value and the related unrealized gains
and losses are included in earnings; (2) held-to-maturity
debt securities, which are expected to be held to maturity
with the positive intent and ability to hold to maturity, arereported at amortized cost; and (3) available-for-salesecurities, which are not classified as either of theaforementioned securities, are reported at fair value withunrealized gains and losses, net of applicable taxes,
reported in a separate component of equity.
The cost of trading account securities and available-forsale securities sold is determined based on the movingaverage method.
In addition, investments in unconsolidated subsidiaries
not accounted for by the equity method are reported atcost determined by the moving-average method.
Available-for-sale securities for which fair value isextremely difficult to determine are reported at cost
determined by the moving-average method.
For other-than-temporary declines in fair value,
investment securities are reduced to net realizable value
by a charge to income.
Securities included in money held in trust are alsoclassified and accounted for using the same method as
above.
The components of trust assets are accounted forbased on the standard appropriate for each asset type.
Instruments held in trust for trading purposes arerecorded at fair value and unrealized gains and losses
are recorded in other income/expenses. Instruments heldin trust classified as available-for-sale are recorded at fairvalue with the corresponding unrealized gains/losses
recorded directly in a separate component of equity.
Instruments held in trust classified as held to maturity arecarried at amortized cost.

g. Long-Lived Assets—The Companies review theirlong-lived assets for impairment whenever events orchanges in circumstances indicate the carrying amount ofan asset or asset group may not be recoverable. An
impairment loss would be recognized if the carrying
amount of an asset or asset group exceeds the sum of
the undiscounted future cash flows expected to result
from the continued use and eventual disposition of theasset or asset group. The impairment loss would bemeasured as the amount by which the carrying amount of
the asset exceeds its recoverable amount, which is thehigher of the discounted cash flows (“DCFs”) from thecontinued use and eventual disposition of the asset or the
net selling price at disposition.

Missionc. Cash and Cash Equivalents—For the purposeof the consolidated statement of cash flows, cash
and cash equivalents represent cash and amounts
due from the Bank of Japan.

q. Derivatives and Hedging Activities—It is the Bank’s
policy to use derivative financial instruments(“derivatives”) primarily for the purpose of reducing
market risks associated with its assets and liabilities. The
Bank also utilizes derivatives to meet the needs of its
clients while entering into derivatives as a part of its
trading activities. The Bank enters into interest rate swaps
and interest rate swaptions as a means of hedging its
interest rate risk on certain loans and investment
securities and to meet the needs of its clients. The Bank
also enters into currency swaps, foreign exchange
forward contracts, and currency options to hedge foreign
currency exchange risk associated with its assets andliabilities denominated in foreign currencies and to meetthe needs of its clients.
Derivatives are recognized as either assets or liabilities
and measured at fair value. Gains or losses on derivativetransactions are recognized in the consolidated statement

THE 77 BANK INTEGRATED REPORT63

Cash and due from banks ¥1,371,871 ¥747,105 $12,391,572
Due from banks, excluding(4,880)(9,698)(44,079)
due from the Bank of Japan
Cash and cash equivalents¥1,366,991 ¥737,406 $12,347,493
at the end of year

Securities classified as:
Trading
Available-for-sale:
Equity securities* ¥ 59,209
Debt securities 2,201,520
Other securities* 693,748
1,014
Held to maturity

Fair
Value

¥
¥78,064
9,093
77,926

20,627¥ 1,155 136,119
4,702 2,205,911
15,484 756,190
1
1,012

Millions of Yen

2020
Unrealized Unrealized
Gains
Losses

Cost

Securities classified as:
Trading
Available-for-sale:
Equity securities* ¥ 52,054
Debt securities 2,146,298
Other securities* 617,863
Held to maturity
1,000

Fair
Value

¥
¥54,647
13,036
42,63518,873¥ 2,724 103,977
3,471 2,155,864
25,176 635,321
1,000

Thousands of U.S. Dollars

2021

4. TRADING ACCOUNT SECURITIES ANDINVESTMENT SECURITIES

Cost

Trading account securities as of March 31, 2021 and2020, consisted of the following:

National government bonds
Local government bonds
Other securities
Total

Millions of Yen
2021
2020

¥ 229
14,396
6,001¥20,627¥649
12,222
6,000¥18,873

Thousands of
U.S. Dollars
2021

$

2,068
130,033
54,204$186,315

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021

National government bonds ¥ 274,404 ¥ 453,343 $ 2,478,583
909,175 744,437 8,212,221
Local government bonds
1,023,345 959,084 9,243,473
Corporate bonds
137,884 105,845 1,245,452
Equity securities
761,732 640,922 6,880,426
Other securities¥3,106,542 ¥2,903,632 $28,060,175
Total
Investment in an unconsolidated subsidiary in theamount of ¥25 million ($225 thousand) and ¥25 million
and investment in interest in partnership in the amount of¥3,580 million ($32,336 thousand) and ¥2,771 million are
included in the above equity securities and othersecurities as of March 31, 2021 and 2020, respectively.
The carrying amounts and aggregate fair values of
securities as of March 31, 2021 and 2020, were as
follows:
Securities below include trading account securities andinvestment securities:$$705,121
82,133703,874

Valuation differences:
Available-for-sale securities ¥143,486 ¥78,690 $1,296,052
Available-for-sale money
7,913
919
71,475held in trust(44,841) (23,401) (405,031)
Deferred tax liabilities
Unrealized gains on availablefor-sale securities¥106,557 ¥56,207 $ 962,487

5. MONEY HELD IN TRUSTThe carrying amounts and aggregate fair values of money
held in trust as of March 31, 2021 and 2020, were as
follows:
Millions of Yen

2021

186,315$ 10,432 1,229,509
42,471 19,925,128
139,860 6,830,367
9
9,140

Money held in trustclassified as:
Trading
Available-for-sale
Total

Unrealized Unrealized
Gains
LossesCost¥21,581¥21,581* Unlisted equity securities for which the fair value isextremely difficult to determine are not included.
Securities, other than trading account securities, withreadily determinable fair value, whose fair value
significantly declined compared with the acquisition cost
and whose fair value is not considered likely to recover totheir acquisition cost, are written down to the respective
fair value. The related losses on revaluation are charged
to income for the fiscal year.
Impairment losses were recognized for available-forsale securities in the amount of ¥119 million ($1,074
thousand), consisting of ¥119 million ($1,074 thousand)of other securities, and ¥201 million, consisting of ¥201
million of equity securities for the years ended March 31,
2021 and 2020, respectively.
The criteria for determining whether the fair value has“significantly declined” are defined based on the asset
classification of the issuer in the internal standards for
asset quality self-assessment as follows:(a) Normal issuer: Fair value declined by 50% or moreof the acquisition cost or fair value declined between
30% and 50% and average fair value during thepast one month declined by 50% or more (30% ormore for issuers who have credit risk more than acertain level).
(b) Caution issuers: Fair value declined by 30% or moreof the acquisition cost.
(c) Legally bankrupt, virtually bankrupt, and possibly
bankrupt issuers: Fair value is lower than theacquisition cost.
Proceeds from sales of available-for-sale securities for

Thousands of
U.S. Dollars
2021¥7,913¥7,913

Fair
Value¥ 79,406
29,494¥108,901

Millions of Yen

2020

Money held in trustclassified as:
Trading
Available-for-sale
Total

Unrealized Unrealized
Gains
LossesCost¥21,581¥21,581

¥919
¥919

Fair
Value

Financial
SectionInvestment securities as of March 31, 2021 and 2020,
consisted of the following:

Securities classified as:
Trading
Available-for-sale:
Equity securities* $ 534,811
Debt securities 19,885,466
Other securities* 6,266,353
9,159
Held to maturity

Fair
Value

Unrealized Unrealized
Gains
LossesMillions of Yen
2021
2020

Company
Information

64

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021

Unrealized Unrealized
Gains
LossesCost

the years ended March 31, 2021 and 2020, were¥149,876 million ($1,353,771 thousand) and ¥37,056
million, respectively. Gross realized gains and losses onthese sales, computed on a moving average cost basis,
were ¥12,241 million ($110,568 thousand) and ¥1,203
million ($10,866 thousand), respectively, for the year
ended March 31, 2021, and ¥5,077 million and ¥136
million, respectively, for the year ended March 31, 2020.
Unrealized gains on available-for-sale securities as ofMarch 31, 2021 and 2020, consisted of the following:

Strategyt. Changes in Presentation—On March 31, 2020, the
Accounting Standards Board of Japan (“ASBJ”) issued
ASBJ Statement No. 31, “Accounting Standard forDisclosure of Accounting Estimates.”

The reconciliation of cash and cash equivalents at theend of the year and cash and due from banks in the
consolidated balance sheet as of March 31, 2021 and2020, was as follows:

2021

Va l u es. Significant Accounting Estimates
Reserve for loan losses(1) Amount recorded in the consolidated financial
statements as of March 31, 2021
¥61,356 million ($554,204 thousand)(2) Information about the details of significant accounting
estimates for the identified item
i. Computation method
The method of computing reserve for loan losses isstated in “i. Reserve for loan losses” under Note 2,“Summary of Significant Accounting Policies.”
ii. Main assumptions
Main assumptions are the future prospects used in
the assessment of the category of loans by debtor
classification.
Debtor classification is assessed bycomprehensively taking into account profitability
projections, reasonableness of management
improvement plans, status of support from financial
institutions, etc., based on the characteristics of theindustry to which the debtor belongs, after verifying
the debtor’s ability to repay the debts based on thefinancial position, cash management, cash flows,
etc. of the debtor and confirming the lending
conditions and the status of its fulfilment.
Regarding the domestic economy, it is assumed
that the economic downturn will continue for thetime being due to the impact of COVID-19. There
was no significant change in the assumptions on
COVID-19 from the previous fiscal year.
iii. Impact on the consolidated financial statements forthe following fiscal year
If the assumptions used in the initial estimateschange due to changes in the debtors’
performances, this may have a significant impact onreserve for loan losses in the consolidated financial
statements for the following fiscal year.
Furthermore, changes in assumptions used forthe estimates include a risk of a further downturn inthe economy due to the delay of supply of
COVID-19 vaccines and prolonged restrictions of
economic activity following the spread of the highly
contagious variants of COVID-19.

3. CASH AND CASH EQUIVALENTS

Millions of Yen

Visionr. Per Share Information—Basic net income per share iscomputed by dividing net income attributable to common
stockholders by the weighted-average number ofcommon shares outstanding for the period, retroactively
adjusted for stock splits or share consolidation.
Cash dividends per share presented in the consolidated
statement of income are dividends applicable to therespective years including dividends to be paid after theend of the year.

The Bank has applied this standard to the consolidated
financial statements for the year ended March 31, 2021,
and provided a note concerning significant accounting
estimates in the consolidated financial statements.
However, such note does not state the contents
concerning the previous fiscal year pursuant to thetransitional treatment prescribed in the proviso ofparagraph 11 of the above standard.

Missionof income. If derivatives qualify for hedge
accounting because of high correlation andeffectiveness between the hedging instruments andthe hedged items, the gains or losses on derivatives aredeferred until maturity of the hedged transactions.
The interest rate swaps which qualify for hedge
accounting and meet specific matching criteria are notremeasured at market value, but the differential paid or
received under the swap agreements is recognized andincluded in interest expense or income.

¥59,843
22,500¥82,344

Thousands of U.S. Dollars

2021
Cost

Money held in trustclassified as:
Trading
Available-for-sale $194,932$194,932
Total

Unrealized Unrealized
Gains
Losses$71,475$71,475

Fair
Value

$717,243
266,407$983,660

Available-for-sale securities held in trust, whose fairvalue significantly declined compared with the acquisition
cost and whose fair value is not considered likely torecover to their acquisition cost, are written down to therespective fair value.
No impairment loss was recognized for money held in
trust for the years ended March 31, 2021 and 2020.

THE 77 BANK INTEGRATED REPORT

65

7. FOREIGN EXCHANGESLoans and bills discounted as of March 31, 2021
and 2020, consisted of the following:Thousands ofMillions of Yen
U.S. Dollars

Foreign exchange assets and liabilities as of March 31,
2021 and 2020, consisted of the following:

¥

2020

2021

6,321 ¥
8,417 $
57,095112,595
134,989 1,017,026
4,369,410 4,126,107 39,467,166
600,242616,705 5,421,750¥5,088,570 ¥4,886,221 $45,963,056

Thousands of
U.S. Dollars
2021

66

¥ 38
78
¥116

$ 108
1,282
$1,400

The accumulated depreciation of tangible fixed assets asof March 31, 2021, and 2020, amounted to ¥86,972 million($785,583 thousand) and ¥85,053 million, respectively.
As of March 31, 2021 and 2020, deferred gains for tax
purposes of ¥7,695 million ($69,505 thousand) and¥7,695 million, respectively, on tangible fixed assets sold
and replaced with similar assets have been deductedfrom the cost of newly acquired tangible fixed assets.

9. LONG-LIVED ASSETS
The Bank recognized impairment losses of ¥292 million($2,637 thousand) and ¥126 million on certain operating
branches, business premises, branches to be closed, andunused facilities for the years ended March 31, 2021 and2020, respectively.
The impairment losses were composed of ¥107 million($966 thousand) on buildings, ¥2 million ($18 thousand)on land and ¥182 million ($1,643 thousand) on other fixed
assets for the year ended March 31, 2021, and ¥67
million on buildings and ¥59 million on other fixed assets
for the year ended March 31, 2020.
For the purpose of testing for impairment, the Bank
recognizes each individual branch office as a cashgenerating unit for which it continues to manage andmonitor identifiable cash flows. Branch offices to beclosed and facilities not in operation are individuallyassessed for impairment. Subsidiaries recognize eachcompany as a cash-generating unit. An impairment loss
would be recognized if the carrying amount of an asset or
asset group exceeds the sum of the undiscounted future
cash flows expected to result from the continued use andeventual disposition of the asset or asset group.
The impairment loss would be measured as the amountby which the carrying amount of the asset exceeds its
recoverable amount, which is the higher of the DCFs fromthe continued use and eventual disposition of the asset or
the net selling price at disposition. The DCFs were
calculated using discount rates of 6.6% and 5.7% for theyears ended March 31, 2021 and 2020, respectively, andthe net selling price was determined by quotation from athird-party vendor.

Millions of Yen
2021
2020

11. ASSETS PLEDGED
Assets pledged as collateral and their relevant liabilities
as of March 31, 2021 and 2020, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

8. TANGIBLE FIXED ASSETS

2021

2021

2020

Assets pledged as collateral:
Investment securities¥977,812 ¥628,124 $8,832,192
Other assets
144
144
1,300
Relevant liabilities to above assets:
Deposits
51,96850,630469,406
Payables under securities
lending transactions
25,869233,664
11,986
Borrowed money
596,235 279,189 5,385,556
In addition to the above, the following assets were
offered as collateral for exchange settlement transactions,or as substitutes for future transaction initial margin andothers:Thousands of
U.S. Dollars

Millions of Yen

Investment securities
Other assets
Of which:
Cash collateral paid
for financial instruments
Guarantee deposits forleased tangible fixed assets

Deposits as of March 31, 2021 and 2020, consisted of thefollowing:

2021

¥

100
50,000

2020

¥

100
50,000

2021

$

903
451,630

9,375

4,033

84,680

93

93

840

12. LOAN COMMITMENTS
Contracts of overdraft facilities and loan commitments arecontracts with customers to lend up to the prescribed
limits in response to customers’ applications for a loan, as
long as there is no violation of any condition within thecontracts. As of March 31, 2021, the unused amount ofsuch contracts totaled ¥1,671,011 million ($15,093,586
thousand), of which amounts with original agreement
terms of less than one year were ¥1,551,636 million($14,015,319 thousand). As of March 31, 2020, theunused amount of such contracts totaled ¥1,617,531
million, of which amounts with original agreement termsof less than one year were ¥1,512,502 million.
Since many of the commitments expire without being
drawn upon, the unused amount does not necessarily
represent a future cash requirement. Most of thesecontracts have conditions allowing the Companies torefuse customers’ applications for a loan or decrease thecontract limits based on proper reasons (e.g., changes infinancial situation, deterioration in customers’
creditworthiness). At the inception of the contracts, theCompanies obtain collateral real estate, securities, etc., if

Thousands of
U.S. Dollars
2021

Current deposits¥ 240,917 ¥ 203,474 $ 2,176,108
Ordinary deposits
5,748,476 5,041,623 51,923,728
122,283
Deposits at notice
13,53814,922Time deposits
2,077,491 2,097,525 18,765,161
211,460 289,000 1,910,035
Negotiable certificates of deposit
Other deposits
235,597 219,445 2,128,055
Total¥8,527,481 ¥7,865,991 $77,025,390

14. BORROWED MONEY
As of March 31, 2021 and 2020, the weighted-averageannual interest rates applicable to borrowed money were0.006% and 0.056%, respectively.
Borrowed money consisted of borrowings from the
Bank of Japan and other financial institutions. Annual
maturities of borrowed money as of March 31, 2021, wereas follows:Year Ending March 31
2022
2023
2024
2025
2026
2027 and thereafter
Total

Millions of Yen¥446,865
1,707
154,119870
403
712¥604,679

Thousands of
U.S. Dollars$4,036,356
15,4181,392,096
7,858
3,640
6,431
$5,461,828

Financial
SectionLoans to borrowers in bankruptcy represent nonaccrualloans to debtors who are legally bankrupt, as defined in
the Enforcement Ordinance for the Corporation Tax Law.
Past due loans are nonaccrual loans which include
loans classified as possibly bankrupt and virtuallybankrupt.
Nonaccrual loans are defined as loans for which the
Bank has discontinued accruing interest income due tosubstantial doubt existing about the ultimate collection ofprincipal and/or interest. Such loans are classified either
as possibly bankrupt or virtually bankrupt under the
Bank’s self-assessment guidelines.
In addition to past due loans, certain other loansclassified as caution under the Bank’s self-assessment
guidelines include past due loans (three months or more)which consist of loans for which the principal and/orinterest is three months or more past due, but exclude
loans to borrowers in bankruptcy and past due loans.
Restructured loans are loans where the Bank and its
subsidiaries relax lending conditions by reducing theoriginal interest rate or by forbearing interest payments or
principal repayments to support the borrower’s
reorganization. Restructured loans exclude loans toborrowers in bankruptcy, past due loans or past due loans(three months or more).

¥ 12
142
¥155

$52,976$52,976

Company
Information

Loans to borrowers inbankruptcy¥ 3,291 ¥ 9,976 $ 29,726
Past due loans
74,18865,808670,111
Past due loans (three months
or more)
1,032
867
9,321
Restructured loans
33,47628,536302,375
Total¥111,989 ¥105,188 $ 1,011,552

Liabilities
Foreign exchange bills sold
Foreign exchange bills payable
Total¥9,528¥9,528Strategy

Millions of Yen
2021
2020

¥5,865¥5,865

13. DEPOSITS

Va l u eBills discounted are accounted for as financialtransactions in accordance with “Treatment of Accounting
and Auditing of Application of Accounting Standard for
Financial Instruments in the Banking Industry” (JICPA
Industry Committee Practical Guideline No. 24). The
Bank has rights to sell or pledge these bills discounted.
The total of the face value of bills discounted was ¥6,321
million ($57,095 thousand) and ¥8,417 million as ofMarch 31, 2021 and 2020, respectively.
Loans and bills discounted as of March 31, 2021 and2020, included the following loans:

AssetsDue from foreign correspondentaccounts
Total

Millions of Yen
2021
2020

All contingent liabilities arising from acceptances andguarantees are reflected in “Acceptances andguarantees.” “Customers’ liabilities for acceptances andguarantees” are shown as assets, representing theBank’s right to receive indemnity from the applicants.
The amount of guarantee obligations for privately
placed corporate bonds included in securities as of March
31, 2021 and 2020, was ¥37,079 million ($334,920
thousand) and ¥25,859 million, respectively.

considered to be necessary. Subsequently, theCompanies perform a periodic review of the customers’
business results based on internal rules and takenecessary measures to reconsider conditions in contracts
and require additional collateral and guarantees.

VisionBills discounted
Loans on bills
Loans on deeds
Overdrafts
Total

2021

Thousands of
U.S. Dollars
2021

10. CUSTOMERS’ LIABILITIES FOR
ACCEPTANCES AND GUARANTEES

Mission

6. LOANS AND BILLS DISCOUNTED

15. LIABILITY FOR EMPLOYEES’ RETIREMENTBENEFITS
The Bank has severance payment plans as defined
benefit plans consisting of corporate pension fund plans
and lump-sum retirement payment plans for employees.
In addition, the Bank has established corporate defined
contribution pension plans as defined contribution plans.
The Bank has also established a retirement benefit trust
under the lump-sum retirement payment plan.
The consolidated subsidiaries have lump-sum
retirement payment plans and calculate liability for
retirement benefit and retirement benefit costs using ashortcut method.

THE 77 BANK INTEGRATED REPORT67

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021(4) The components of net periodic retirement benefit
costs for the years ended March 31, 2021 and 2020,
were as follows:
Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021(2) The changes in plan assets for the years ended March
31, 2021 and 2020, were as follows:(5) Amounts recognized in other comprehensive income(before income tax effect) in respect of defined
retirement benefit plans for the years ended March 31,
2021 and 2020, were as follows:

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021

Liability for employees’ retirement benefits¥17,102 ¥25,539 $154,475
Asset for employees’ retirement
benefits
Net liability arising from projected¥17,102 ¥25,539 $154,475
benefit obligations¥3,270 ¥(1,798) $29,536¥3,270 ¥(1,798) $29,536(6) Amounts recognized in accumulated othercomprehensive income (before income tax effect) in
respect of defined retirement benefit plans as of March
31, 2021 and 2020, were as follows:

Unrecognized actuarial losses
Total

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021¥7,565 ¥10,836 $68,331¥7,565 ¥10,836 $68,331(7) Plan assets as of March 31, 2021 and 2020a. Components of plan assets
Plan assets consisted of the following:
2021

Debt investments
41%
Equity investments
33
Cash and cash equivalents
1
Life insurance company accounts (general accounts) 20
Call loans, etc.
5
Others
0
Total
100%

2020

23%
23
11
24
19
0
100%

Note: Total plan assets as of March 31, 2021 and 2020,
include retirement benefit trust established underlump-sum payment plans by 20% and 22%,
respectively.
b. Method of determining the long-term expected rateof return on plan assets
The expected rate of return on plan assets is determinedconsidering allocation of plan assets which are expectedcurrently and in the future and the long-term rates ofreturn which are expected currently and in the future fromthe various components of the plan assets.

68

16. ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations which were recognized on
the consolidated balance sheet as of March 31, 2021 and2020, were as follows:a. Overview of asset retirement obligations
Asset retirement obligations are recognized for obligationsof restoring leased buildings, such as branch premises, totheir original state, based on the real estate lease
contracts and asbestos removal costs.
b. Calculation of asset retirement obligations
Asset retirement obligations are calculated based on theestimated available periods of 16 to 31 years dependingon the expected useful lives of buildings using discountrates from 0.139% to 2.324%.
c. The changes in asset retirement obligations for theyears ended March 31, 2021 and 2020, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

Balance at beginning of year
Increase due to acquisitionof tangible assets
Reconciliation associatedwith passage of time
Decrease due to execution ofasset retirement obligations
Other
Balance at end of year

2021

2020

¥661

¥662

2021

$5,970

17
5

5

45

¥667

(15)
(9)
¥661

$6,024

17. PERFORMANCE-LINKED STOCKCOMPENSATION SYSTEM
The Bank has introduced a performance-linked stockcompensation system (the “System”) based on the Board
Incentive Plan (“BIP”) trust from the perspective ofenhancing motivation to make contributions to improving
the medium- to long-term performance and corporate
value by further clarifying the linkage between
compensation to directors, etc. and stock value of the
Bank.
Under the System, the Bank’s shares are acquired
using the funds contributed by the Bank as compensation
to directors, etc. through the trust and such shares are
granted to directors, etc. through the trust according totheir ranks and achievement of management plans. Saidtransactions are related to the System.
The Bank’s shares remaining in the trust are recorded
as treasury stock under “Equity” and the carrying amountof such treasury stock was ¥1,019 million ($9,204
thousand) and ¥1,089 million and the number of shares
was 371 thousand shares and 396 thousand shares as ofMarch 31, 2021 and 2020, respectively.

THE 77 BANK INTEGRATED REPORT

Financial
SectionFunded projected benefit obligations ¥ 69,602 ¥ 69,110 $ 628,687(52,647) (43,708) (475,539)
Plan assets
16,95525,401 153,147
Total
147
137
1,327
Unfunded projected benefit obligations
Net liability arising from projected¥ 17,102 ¥ 25,539 $ 154,475
benefit obligations

Thousands of
U.S. Dollars
2021(9) Defined contribution
The amount required to be contributed to the defined
contribution plan of the Bank was ¥263 million ($2,375
thousand) and ¥268 million for the fiscal years ended
March 31, 2021 and 2020, respectively.

Company
Information(3) Reconciliation between the liability recorded in the
consolidated balance sheet and the balances ofprojected benefit obligations and plan assets as ofMarch 31, 2021 and 2020, was as follows:

Actuarial gains (losses)
Total

Millions of Yen
2021
2020

0.6%
3.2
4.5

Japanese banks are subject to the Banking Law and to
the Companies Act of Japan (the “Companies Act”). The
significant provisions in the Companies Act and the
Banking Law that affect financial and accounting matters
are summarized below:
a. Dividends
Under the Companies Act, companies can pay dividends
at any time during the fiscal year in addition to the yearend dividend upon resolution at the general meeting ofstockholders. For companies that meet certain criteriasuch as (1) having a Board of Directors, (2) having
independent auditors, (3) having an Audit & Supervisory
Board, and (4) the term of service of the directors beingprescribed as one year rather than two years of normal
term by its articles of incorporation, the Board of Directors
may declare dividends (except for dividends-in-kind) at
any time during the fiscal year if the company hasprescribed so in its articles of incorporation. The Bank
meets all the above criteria. The Companies Act permits
companies to distribute dividends-in-kind (noncash
assets) to stockholders subject to certain limitations andadditional requirements. Semiannual interim dividends
may also be paid once a year upon resolution by the
Board of Directors if the articles of incorporation of thecompany so stipulate. The Bank can do so because it
stipulates this in its articles of incorporation. The
Companies Act provides certain limitations on theamounts available for dividends or the purchase oftreasury stock. The limitation is defined as the amountavailable for distribution to the stockholders, but theamount of net assets after dividends must be maintained
at no less than ¥3 million.
b. Increases/Decreases and Transfer of Common
Stock, Reserve and Surplus
The Banking Law requires that an amount equal to 20%
of dividends must be appropriated as a legal reserve (acomponent of retained earnings) or as additional paid-in
capital (a component of capital surplus) depending on theequity account charged upon the payment of such
dividends until the total of the aggregate amount of thelegal reserve and additional paid-in capital equals 100%of stated capital.
Under the Companies Act and the Banking Law, theaggregate amount of additional paid-in capital and thelegal reserve that exceeds 100% of the stated capital
may be made available for dividends by resolution of thestockholders after transferring such excess to retained
earnings in accordance with the Companies Act. Under
the Companies Act, the total amount of additional paid-in
capital and the legal reserve may be reversed without
limitation. The Companies Act also provides that statedcapital, legal reserve, additional paid-in capital, othercapital surplus, and retained earnings can be transferredamong the accounts under certain conditions upon
resolution of the stockholders.
c. Treasury Stock and Treasury Stock Acquisition
RightsThe Companies Act also provides for companies topurchase treasury stock and dispose of such treasury
stock by resolution of the Board of Directors. The amountof treasury stock purchased cannot exceed the amountavailable for distribution to the stockholders which isdetermined by a specific formula. Under the Companies
Act, stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides
that companies can purchase both treasury stockacquisition rights and treasury stock. Such treasury stockacquisition rights are presented as a separate componentof equity or deducted directly from stock acquisition rights.

Strategy

Balance at beginning of year
¥43,708 ¥45,879 $394,797
1,383
1,455 12,492
Expected return on plan assets
3,640(2,539) 32,878
Actuarial gains (losses)
Contributions from theemployer
5,760
761 52,027(2,026) (2,028) (18,300)
Benefits paid
Others
180
180
1,625
Balance at end of year
¥52,647 ¥43,708 $475,539

Note: Employees’ contribution to corporate pension funds
is deducted.

Discount rate
0.6%
Long-term expected rate of return on plan assets 3.2
Expected rate of salary increase
4.5

2020

Va l u eService cost
¥ 1,658 ¥ 1,677 $ 14,976
Interest cost
440
443
3,974
(1,383) (1,455) (12,492)
Expected return on plan assets
Recognized actuarial losses
1,619
1,196 14,623
Net periodic retirement benefit costs ¥ 2,335 ¥ 1,861 $ 21,091

2021

18. EQUITY

Vision¥69,248 ¥69,781 $625,490
1,658
1,677 14,976
440
443
3,974
1,989
455 17,965(3,768) (3,289) (34,034)
180
180
1,625
¥69,749 ¥69,248 $630,015

Balance at beginning of year
Service cost
Interest cost
Actuarial losses
Benefits paid
OthersBalance at end of year

(8) Assumptions used for the years ended March 31,
2021 and 2020, were set forth as follows:

Mission(1) The changes in projected benefit obligations forthe years ended March 31, 2021 and 2020,
were as follows:6919. OTHER OPERATING INCOME¥

404 ¥ 110 $ 3,649
7,363
7,341
66,507
6,222
4,573
56,200¥13,990 ¥12,025 $126,366

20. OTHER INCOME

¥

29
1,133
¥1,163¥12
1,497¥1,510Thousands of
U.S. Dollars
2021

$ 261
10,233$10,504

21. OTHER OPERATING EXPENSES
Other operating expenses for the years ended March 31,
2021 and 2020, consisted of the following:

22. OTHER EXPENSES
Other expenses for the years ended March 31, 2021 and2020, consisted of the following:

Bad debt losses
Losses on dispositions of money
held in trust
Losses on sales of loans
Losses on impairments anddisposals of fixed assets
Provision for reserve forreimbursement of deposits
Other
Total

70

Millions of Yen
2021
2020

¥

58

¥

60

Thousands of
U.S. Dollars
2021

$

523

856
249

1,546
452

7,731
2,249

393

188

3,549

126
1,373
¥3,057118
701¥3,066

1,138
12,401$27,612

Note: Valuation allowance for the fiscal year ended
March 31, 2021, increased by ¥817 million ($7,379
thousand). This increase was mainly due to anincrease of ¥886 million ($8,002 thousand) invaluation allowance on reserve for loan losses at
the Bank and consolidated subsidiaries.
A reconciliation between the normal effective statutory
tax rate and the actual effective tax rate reflected in theaccompanying consolidated statement of income for theyear ended March 31, 2021, was as follows, whereas areconciliation for the year ended March 31, 2020, is not
required under Japanese accounting standards, since thedifference is less than 5% of the normal effective statutory
tax rate.
2021

Normal effective statutory tax rate
30.5%
Expenses not deductible for income tax purposes 0.2(1.1)
Nontaxable dividend income
Inhabitants taxes
0.3
3.3
Valuation allowance
Other—net
0.5
Actual effective tax rate
33.7%

Deferred gains on derivatives underhedge accounting:(Loss) gain arising during the year ¥Reclassification adjustment toprofit or loss
Amount before income tax effect
Income tax effect¥Total(53) ¥

25 $

(478)

701

871

6,331

647
897
5,844
(196)
(272)
(1,770)450 ¥ 624 $ 4,064

Defined retirement benefit plans:
Gain (loss) arising during the year ¥1,650 ¥ (2,994) $ 14,903
Reclassification adjustment to
1,619
1,196
14,623
profit or loss
3,270 (1,798) 29,536
Amount before income tax effect(994)(8,978)546
Income tax effect¥ 2,276 ¥ (1,251) $ 20,558
Total
Total other comprehensive income(loss)¥ 53,077 ¥(55,528) $ 479,423

25. LEASES
Finance Leases
LessorA subsidiary leases certain equipment and other assets
to various customers.
The net investments in leases as of March 31, 2021
and 2020, are summarized as follows:

Gross lease receivables
Estimated residual values
Unearned interest income
Investments in leases

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021¥19,739 ¥19,744 $178,294
1,549
1,310
13,991(1,856) (1,901) (16,764)¥19,433 ¥19,153 $175,530

Maturities of lease receivables for finance leases as ofMarch 31, 2021, are as follows:Year Ending March 31
2022
2023
2024
2025
2026
2027 and thereafter
Total

Millions of Yen

¥ 51
44
30
28
22
44
¥223

Thousands of
U.S. Dollars

$ 460
397
270
252
198
397
$2,014¥ 6,096
4,956
3,777
2,466
1,288
1,154
¥19,739

Thousands of
U.S. Dollars$ 55,062
44,765
34,11622,274
11,633
10,423$178,294

26. FINANCIAL INSTRUMENTS AND RELATEDDISCLOSURES(1) Group Policy for Financial Instruments
The Companies provide financial services such as credit
card business and leasing operations in addition tobanking operations. In the course of these operations, theCompanies raise funds principally through deposit taking
and invest funds in loans, securities, and others. As such,the Bank holds financial assets and liabilities which are
subject to fluctuation in interest rates and conducts
comprehensive Asset and Liability Management (“ALM”)
to avoid unfavorable effects from interest rate fluctuations.
Derivatives are also employed by the Bank as part of ALM.
(2) Nature and Extent of Risks Arising from Financial
Instruments
Financial assets held by the Companies mainly consist ofloans to domestic corporations, local government
agencies, and individual customers which are exposed tocredit risk that the Companies may suffer from losses
resulting from nonperformance of borrowers and interest
rate risk that the Companies may suffer from losses
resulting from fluctuations in interest rates.
Securities, mainly debt securities, equity securities, andinvestment trusts are held to maturity and for otherpurposes and also certain debt securities are held for the
purpose of selling to customers. These securities are
exposed to credit risk of issuers and market risks offluctuations in interest rates and market prices. In
addition, they are exposed to market liquidity risk that theCompanies may suffer from losses resulting fromdifficulties in executing financial transactions in certain
environments such as market turmoil.
Financial liabilities, mainly consisting of liquid deposits
or time deposits taken from corporate and individual
customers, are exposed to cash flow risk that the Bank
may experience a situation where unexpected cash flows
are incurred in certain environments where the credit
rating of the Bank may be lowered and, accordingly,
necessary funding may become difficult.
Foreign currency denominated assets and liabilities are
exposed to foreign exchange risk that the Bank may
suffer from losses resulting from fluctuations in foreignexchange rates.
Derivatives mainly include interest rate swaps and bondfutures, which are used to manage exposure to market
risks from changes in interest rates of loans andinvestment securities, and foreign exchange forward
contracts, which are used to hedge foreign exchange risk
associated with foreign currency-denominated assets andliabilities. Hedge accounting is applied to certain hedging
activities related to loans and investment securities ashedged items.
(3) Risk Management for Financial Instruments
Credit risk management
The Bank has established the “Credit Risk Control Policy”
as a basic policy for credit risk management and various
THE 77 BANK INTEGRATED REPORT

Financial
SectionLosses on sales, redemption
and devaluation of bonds and ¥13,137 ¥ 2,595 $118,661
other securities
Lease costs
6,754
6,746
61,006
Other
2,216
4,869
20,016
Total¥22,107 ¥14,211 $199,683

Deferred tax assets:¥ 15,396 ¥14,388 $ 139,066
Reserve for loan losses
Liability for employees’
8,183 10,746
73,913
retirement benefits
5,139
5,850
46,418Fixed assets (depreciation)
Losses on devaluation of
3,039
3,264
27,450stocks and other securities
5,916
6,406
53,436Other
Less valuation allowance(13,571) (12,754) (122,581)(see Note below)
24,104 27,903
217,721
Total
Deferred tax liabilities:
Unrealized gains on available44,841 23,401
405,031
for-sale securities
Fixed assets (deferred gain
300
309
2,709
on sales and replacements)
15
17
135
Other
45,157 23,729
407,885
Total
Net deferred tax (liabilities)¥(21,053) ¥ 4,173 $ (190,163)
assets

Unrealized gains (losses) on available-for-sale securities:
Gain (loss) arising during the year ¥ 72,116 ¥(65,730) $ 651,395
Reclassification adjustment to(326) (12,263)(2,944)
profit or loss
Amount before income tax effect 71,790 (77,994) 648,450(21,440) 23,092 (193,659)
Income tax effect¥ 50,350 ¥(54,901) $ 454,791
Total

2022
2023
2024
2025
2026
2027 and thereafter
Total

Millions of Yen

Company
Information

Thousands of
U.S. Dollars
2021

Millions of Yen
2021
2020

Thousands of
U.S. Dollars
2021

Thousands of
U.S. Dollars
2021

Year Ending March 31

Strategy

Gains on sales of tangible fixed assets
Other
Total

Millions of Yen
2021
2020

Millions of Yen
2021
2020

Millions of Yen
2021
2020

Maturities of investment in leases for finance leases asof March 31, 2021, are as follows:

Va l u e

Other income for the years ended March 31, 2021 and2020, consisted of the following:

The Companies are subject to Japanese national andlocal income taxes which, in the aggregate, resulted in anormal effective statutory tax rate of approximately 30.5%
for the years ended March 31, 2021 and 2020.
The tax effects of significant temporary differences
which resulted in deferred tax assets and liabilities as ofMarch 31, 2021 and 2020, were as follows:

The components of other comprehensive income (loss) for
the years ended March 31, 2021 and 2020, were as follows:

VisionGain on sales and redemptionof bonds and other securities
Lease receipts
Other
Total

Thousands of
U.S. Dollars
2021

Millions of Yen
2021
2020

24. OTHER COMPREHENSIVE INCOME (LOSS)

Mission

Other operating income for the years ended March
31, 2021 and 2020, consisted of the following:

23. INCOME TAXES

71

(1)
(1)

$

(9)
(9)

211,498$211,480$ 1,336(72)$ 1,264*General and specific reserves for loan loss
corresponding to loans and bills discounted are deducted.
Notes:
1. Calculation method for the fair value of financial instruments
Assets(1) Cash and due from banks
For due from banks, the carrying amount is presented
as the fair value since the carrying amountapproximates the fair value.
(2) Money held in trust
For securities that are part of trust property in an
independently managed monetary trust with theprimary purpose to manage securities, the fair valuesof equity securities and debt securities are determinedusing the quoted price of the stock exchange, Japan
Securities Dealers Association, or the price calculated
by financial institutions. The fair value of investment
trust is determined using the published standard
quotation or the standard quotation offered by the
securities investment advisors.
See Note 5, “Money Held in Trust” for information
on money held in trust by holding purpose.
(3) Investment securities
The fair values of equity securities and debt securities
are determined using the quoted price of the stock
exchange, Japan Securities Dealers Association, or
the price calculated by financial institutions. The fairvalue of investment trust is determined using the
published standard quotation or the standard
quotation offered by the securities investment

Liabilities(1) Deposits
Regarding demand deposits, the amount payable asof the balance sheet date (i.e., the carrying amount) is
considered to be the fair value. Time deposits andnegotiable certificates of deposit are grouped bymaturity length, and the fair value is determined using
the present value of the aggregate amounts ofprincipal and interest discounted at an interest ratethat would be applied to newly accepted deposits. For
deposits with maturities within a short time period (lessthan one year) and whose carrying amountapproximates the fair value, the carrying amount ispresented as the fair value.
(2) Borrowed money
For each type of borrowed money financed, the fairvalue is determined based on the present value of theaggregated amounts of principal and interest
discounted at a rate which is the rate assumed if a
new financing was made. The carrying amount ispresented as the fair value if the maturity is within ashort time period (less than one year) and the carrying
amount approximates the fair value.

Financial
Section¥March 31, 2021
(1) Cash and due from banks $12,391,572 $12,391,572(2) Money held in trust
983,660
983,660(3) Investment securities 27,994,173 27,994,164
9,159
9,140
Held-to-maturity securities
Available-for-sale securities 27,985,014 27,985,014(4) Loans and bills discounted 45,963,056
Reserve for loan
(539,309)
losses*45,423,737 45,635,236$86,793,162 $87,004,651
Total assets(1) Deposits$77,025,390 $77,026,727(2) Borrowed money
5,461,828 5,461,746$82,487,218 $82,488,483
Total liabilities

Company
Information

Unrealized
Gain/Loss

Thousands of U.S. Dollars
Carrying
Unrealized
Fair Value
AmountGain/Loss

Strategy

Millions of Yen¥35,720¥35,721
¥ 171
1
¥ 173

advisors. With respect to privately placed guaranteedbonds, the fair value is determined using the future
cash flows (coupons, redemption of principal,
guarantee fees) discounted at an interest rateconsidering the market interest rates and issuers’
credit risk.
(4) Loans and bills discounted
With respect to loans with floating interest rates, thecarrying amount is presented as the fair value since
the carrying amount approximates the fair value as
they reflect the market interest rates over a shortperiod, unless the creditworthiness of the borrower
has changed significantly since the loan origination.
With respect to loans with fixed interest rates, foreach category of loan based on the type of loan,internal ratings, and maturity length, the fair value isdetermined based on the present value of expectedcash flows of aggregated amounts of principal andinterest discounted at a rate which is the rate
assumed if a new loan was made, or market interest
rate, which is adjusted by the standard spread(including overhead ratio) by credit rating. The
carrying amount is presented as the fair value if thematurity is within a short time period (less than oneyear) and the carrying amount approximates the fairvalue.
For receivables from “legally bankrupt,” “virtuallybankrupt,” and “possibly bankrupt” borrowers, loan
loss is estimated based on the DCF method or factors
such as the expected amounts to be collected fromcollateral and guarantees. Since the carrying amountapproximates the fair value, net of the currently
expected loan losses, such carrying amount ispresented as the fair value.
For loans for which the repayment due date is notdefined because of the characteristics that the loan
amount is limited within the pledged assets, thecarrying amount is presented as the fair value since
the carrying amount approximates the fair value
considering the expected repayment schedule andterms of the interest rates.

Va l u e

Carrying

Fair Value
March 31, 2021
Amount(1) Cash and due from banks ¥1,371,871 ¥1,371,871(2) Money held in trust
108,901
108,901(3) Investment securities 3,099,235 3,099,234
1,014
1,012
Held-to-maturity securities
Available-for-sale securities 3,098,221 3,098,221(4) Loans and bills discounted 5,088,570
Reserve for loan
(59,707)
losses*5,028,862 5,052,277
Total assets¥9,608,871 ¥9,632,285(1) Deposits¥8,527,481 ¥8,527,629(2) Borrowed money
604,679
604,670
Total liabilities¥9,132,160 ¥9,132,300

March 31, 2020
(1) Cash and due from banks ¥ 747,105 ¥ 747,105(3) Investment securities 2,896,163 2,896,164
Held-to-maturity securities
1,000
1,000
Available-for-sale securities 2,895,163 2,895,163(4) Loans and bills discounted 4,886,221
Reserve for loan
(61,450)
losses*4,824,770 4,860,491
Total assets¥8,468,039 ¥8,503,760(1) Deposits¥7,865,991 ¥7,866,162(2) Borrowed money
285,901
285,903
Total liabilities¥8,151,893 ¥8,152,066

Vision72

fluctuations may not be captured since, under the VaR
method, the volume of market risk under a definite
probability of statistically computed incidence is measured
based on historical market fluctuations.
The Bank implements back testing to compare the VaR
computed by the model with actual profit and loss in the
securities and confirms that the measurement model inuse captures the market risk with sufficient precision.
Liquidity risk management
The Bank has established the “Liquidity Risk Control
Policy” as a basic policy for liquidity risk management andvarious rules concerning liquidity risk management. Basedon these policies and rules, the Bank clarifies fundamental
approaches for stable funding of operations and control
procedures for identifying, monitoring and controlling
liquidity risk. In addition, the Bank has established the“Contingency Plan for Liquidity” to enable it to make quick
and correct responses to unexpected events.
Furthermore, as an organization responsible for liquidity
risk management, a liquidity risk control function has
been established and a cash management function and asettlement control function have been established tocontrol daily cash management and settlement related to
cash and securities.
The Risk Management Division, as a liquidity risk control
function, manages the liquidity risk of the Bank as a wholeby identifying, monitoring and controlling liquidity risk.
The Treasury Administration and International Division,
as a cash management control function and settlement
control function, prepares daily or monthly cash flow
projections and conducts cash management by identifying
possible funds and liquidity of assets and verifying theconcentration of settlement of major account funds to acertain date. The Division also controls settlement byidentifying the status of settlement through systems suchas the BOJ-NET and among financial institutions.
Risk management system of subsidiaries
The subsidiaries have a risk management system similar
to that of the Bank.
(4) Supplementary Explanation about Fair Values ofFinancial Instruments
The fair values of financial instruments include, in addition
to the value determined based on market prices,valuations calculated on a reasonable basis if no market
prices are available. Since certain assumptions are usedin calculating the value, the outcome of such calculation
may vary if different assumptions are used.
(5) Fair Values of Financial Instruments
The carrying amount, fair value, and unrealized gain/lossof the financial instruments as of March 31, 2021 and2020, are disclosed below. Note that unlisted equity
securities for which fair value is extremely difficult todetermine are not included in the following table (seeNote 2 below) and insignificant accounts in terms of thecarrying amount are omitted:

Missionrules concerning credit risk management. Based onthese policies and rules, the Companies clarify
fundamental approaches to secure the soundnessof assets and control procedures for identifying,monitoring, and controlling credit risk. Additionally, theBank utilizes the “Credit Rating System” applied tocounterparties granted with credit from the viewpoint ofidentifying credit risk objectively and enhancing credit risk
control.
In addition, as an organization responsible for credit
risk management, credit risk control functions and review
functions have been established to secure theeffectiveness of credit risk management.
The Risk Management Division, as a credit risk control
function, is engaged in identifying the level of future
possible credit risk and the status of credit concentrationin major borrowers through measurement of the level ofcredit risk and analysis of credit portfolios.
The Credit Supervision Division, as a review control
function, is engaged in reviewing lending operations
based on strict examination standards, systemdevelopment for strengthening the daily control of loan
receivables, and appropriate maintenance of operational
procedures.
Market risk management
a. Market Risk Management System
The Bank has established the “Market Risk Control
Policy” as a basic policy for market risk management andvarious rules concerning market risk management. Basedon these policies and rules, the Bank clarifies
fundamental approaches for appropriate market risk
control operations and control procedures for identifying,monitoring and controlling market risk.
As an organization responsible for market risk
management, a market risk control function (middle
office) has been established and furthermore, theoperating function (front office) and the administration
function (back office) have been separated. Additionally,market risk control function staffs are assigned to theoperating function to secure the effectiveness of market
risk management.
The Risk Management Division, as a market risk
control function, measures the level of market risk of the
Bank as a whole using Value-at-Risk (“VaR”) approachmodels and other models and regularly monitors thestatus of compliance with position limits and loss limits
established according to the type and characteristics oftransactions to control the level of market risk within acertain range.
In addition, an ALM and Income Control Committee
was established for the purpose of analyzing flexible
investment strategies in order to prevent risks resulting
from fluctuations in interest rates and market prices, while
forecasting future interest rates, market prices, and trendsof fund and business conditions. The committee is also
responsible for securing the soundness of management
and also improving profitability at the same time based on
appropriate asset and liability management through theunification of risk management and earnings control.
b. Quantitative Information about Market Risk
The Bank adopts the variance-covariance method(holding period: 125 business days for strategic equity
securities and 60 business days for others; confidence
interval: 99.0%; observation period: 250 business days)in computing the VaR with respect to money held in trust,securities, Japanese yen deposits and loans, andJapanese yen money market funds. The volume ofmarket risk (estimated losses) that the Bank is exposed
to as of March 31, 2021, amounts to ¥107,453 million($970,580 thousand) (¥146,420 million in 2020) as awhole. However, the risk under certain abnormal market

23,415¥23,413
¥ 148
(8)
¥ 140
THE 77 BANK INTEGRATED REPORT73

¥1,765¥1,868$15,942

5,541¥7,306

5,600¥7,46950,049$65,992

4. Repayment schedule of bonds, borrowed money, and other interest-bearing liabilities subsequent to March 31, 2021
Millions of Yen

Deposits*
Borrowed money
Total

Due in 1 Year or
Less

Due after 1 Yearthrough 3 Years

Due after 3 Years
through 5 Years

Due after 5 Years
through 7 Years

Due after 7 Years
through 10 Years¥8,144,814
446,865¥8,591,679¥334,683
155,827¥490,511¥47,983
1,273¥49,257

¥123
¥123

¥172
¥172

Due in 1 Year or
Less

Due after 1 Yearthrough 3 Years

Due after 3 Years
through 5 Years

Due after 5 Years
through 7 Years

Due after 7 Years
through 10 Years$73,568,909
4,036,356$77,605,266$3,023,060
1,407,524$4,430,593$433,411
11,498$444,919$1,111$1,111$1,553$1,553Due after 10
Years

¥416
¥416

Thousands of U.S. Dollars

Deposits*
Borrowed money
Total

Due after 10
Years$3,757$3,757
Va l u e* Demand deposits included in deposits are presented under “Due in 1 year or less.”

3. Maturity analysis for financial assets and securities with contractual maturities as of March 31, 2021

VisionCategory
Unlisted equity securities*1,*2
Capital subscription in investment
business partnerships*3
Total

Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2021
2020
2021

*1 Unlisted equity securities are not treated as instruments
whose fair value is required to be disclosed since there
is no market price and it is extremely difficult todetermine the fair value.
*2 Impairment losses in the amount of ¥1 million ($9thousand) and ¥57 million were recognized for unlisted
equity securities for the years ended March 31, 2021
and 2020, respectively.
*3 Capital subscription in investment business partnerships,
whose assets (i.e., unlisted equity securities) consist of
those whose fair values are extremely difficult todetermine, is not treated as instruments whose fair value
is required to be disclosed.

Mission

2. The financial instruments whose fair value isextremely difficult to determine are as follows.
These items are not included in (3) “Availablefor-sale securities” under “Assets” in the abovetable of fair value information of financial
instruments.

Millions of Yen
Due after 5 Years
through 7 Years

Due after 7 Years
through 10 Years¥1,315,243
331,265¥ 634,312¥ 706,128¥316,223
500¥ 733,240
500

500

500

315,723

732,740
9,000
425,648
178,100
119,991
528,587¥1,261,828

1,251,888¥1,304,688

Due after 10Years331,265
103,700
10,000159,216
58,349
1,095,656¥2,742,165

634,31296,00081,500318,160
138,652
823,645¥1,457,958

706,128
12,000224,100
249,889
220,139
768,329¥1,474,458

159,700
111,523
44,500504,267¥820,491

Due after 10
Years

¥

52,80052,80051,500300
1,000

Thousands of U.S. Dollars

Due from banks
Investment securities
Held-to-maturity securities
National government bonds
Local government bonds
Available-for-sale securities
with contractual maturities
National government bonds
Local government bonds
Corporate bonds
Other
Loans and bills discounted*
Total

Due in 1 Year or
Less

Due after 1 Yearthrough 3 Years

Due after 3 Years
through 5 Years

Due after 5 Years
through 7 Years

Due after 7 Years
through 10 Years$11,880,074
2,992,186$ 5,729,491$ 6,378,177$2,856,318
4,516$ 6,623,069
4,516

4,516

4,516

2,851,802

6,618,552
81,293
3,844,711
1,608,707
1,083,831
4,774,519$11,397,597

2,992,186
936,681
90,326
1,438,135
527,043
9,896,630$24,768,900

5,729,491
867,130
736,157
2,873,814
1,252,389
7,439,662$13,169,162

6,378,177
108,391
2,024,207
2,257,149
1,988,429
6,940,014$13,318,200

1,442,507
1,007,343
401,951
4,554,845$7,411,173$

476,921

27. DERIVATIVES
It is the Bank’s policy to use derivatives primarily for the
purpose of reducing market risks associated with its assets
and liabilities. The Bank also utilizes derivatives to meetthe needs of its clients while entering into derivatives as apart of its trading activities.
The Bank enters into interest rate swaps and interest
rate swaptions as a means of hedging its interest rate risk
on certain loans and investment securities while entering
into interest rate swaps and interest rate swaptions tomeet the needs of its clients.
The Bank also enters into currency swaps, foreignexchange forward contracts, and currency options tohedge foreign exchange risk associated with its assets
and liabilities denominated in foreign currencies and tomeet the needs of its clients.
Derivatives are subject to market risk and credit risk.
Market risk is the exposure created by potential
fluctuations of market conditions, including interest or
foreign exchange rates. Credit risk is the possibility that aloss may result from a counterparty’s failure to perform its
obligations under a contract.

The Bank sets limits on credit risk for those derivatives
by limiting the counterparties to major financial institutions
and securities companies and establishing maximum risk
exposures to the counterparties.
The Bank has established a standard of risk
management including management approaches for eachtype of risk. Derivative transactions entered into by the
Bank have been made in accordance with internal policies
which regulate trading activities and credit risk
management including maximum risk exposures and losscutting rules. Concerning risk management associatedwith derivative transactions, the front and back offices of
the trading divisions are clearly separated and risk
managers are assigned to the trading divisions, while theRisk Management Division synthetically manages the
Bank’s market risks. In this manner, an internal control
system is effectively secured.
The Bank’s positions, gain and loss, risk amount, andother conditions are periodically reported to the executive
committee.

Financial
SectionDue after 3 Years
through 5 Years

Company
Information

Due after 1 Yearthrough 3 Years

Strategy

Due from banks
Investment securities
Held-to-maturity securities
National government bonds
Local government bonds
Available-for-sale securities
with contractual maturities
National government bonds
Local government bonds
Corporate bonds
Other
Loans and bills discounted*
Total

Due in 1 Year orLess

476,921465,179
2,709
9,032
11,307,813$11,784,734* Of loans and bills discounted, the portion whose timing of collection is unforeseeable, such as loans to “legally bankrupt” borrowers,
loans to “virtually bankrupt” borrowers, and loans to “possibly bankrupt” borrowers, amounting to ¥77,480 million ($699,846 thousand)is not included in the above table. Loans that do not have a contractual maturity, amounting to ¥38,713 million ($349,679 thousand), are
not included either.

74

THE 77 BANK INTEGRATED REPORT

75

The Bank has the following derivatives contracts outstanding as of March 31, 2021 and 2020:

At March 31, 2020

Millions of Yen

Total

Due after Fair
One Year Value

Total

Due after Fair
One Year Value

Unrealized
Gains/
LossesTotal

Due after Fair
One Year Value

Special matching criteria
Unrealized
Gains/
LossesTotal
At March 31, 2021
¥ 343

¥ 10,431 ¥10,431

¥ 375

¥ 375

(254)

(254)

10,638

10,636

(284)

(284)

97,082

97,082(2,294) (2,294)

Normal method

(189)

(189)

46,908

10,295104

104

326,835

19,998(1,707) (1,707)

Special matching criteria(6,093) (6,093)
(822)
(822)

101,751
2,170

14
(16)

14
(16)

1,812,446 367,771 (55,035) (55,035)
416,647 367,771 (7,424) (7,424)

(168)
168

19,73819,738

(271)
271

365
(148)

267,645 206,846
267,645 206,846

344
(26)

15,147
15,147$ 95,962 $ 95,962 $ 3,098 $ 3,098(1,517)
1,517

3,107
(234)

Notes:
1. These are principally accounted for under the deferral hedge method in accordance with the JICPA Industry Committee
Practical Guideline No. 24, “Treatment of Accounting and Auditing of Application of Accounting Standard for Financial
Instruments in the Banking Industry.”
2. Fair value is determined using the discounted present value, option-pricing models, etc.

28. RELATED-PARTY TRANSACTIONS

Related-party transactions for the years ended March 31, 2021 and 2020, were as follows:a. Transactions between the Bank and Its Related Parties

Related Party

Account Classification*2¥4,728 ¥4,731
Investment securities(corporate bonds)
211
Customers’ liabilities for
acceptances and349
437
guarantees
204
151
Loans and bills discounted
Customers’ liabilities for
acceptances and1,069 1,000
guarantees
Loans and bills discounted
538

Department Store Fujisaki Co., Ltd.*1 Loans and bills discounted

Fuji Styling Co., Ltd.*1
Fujisaki Agency Co., Ltd.*1
Mr. Minokichi Akaizawa*4

Transactions for the Year*3
Thousandsof U.S.
Millions of Yen
Dollars
2021
2020
2021

Balance at End of Year
Thousandsof U.S.
Millions of Yen
Dollars
2021
2020
2021

$42,706 ¥3,660 ¥4,827

Financial
SectionDerivative Transactions to Which Hedge Accounting Is AppliedWith respect to derivatives to which hedge accounting is applied, contract or notional amount, fair value, and the calculation
method of fair value are as shown below. Note that the contract or notional amounts of the derivatives which are shown in
the table do not represent the amounts of the Bank’s exposure to market risk.
At March 31, 2021
Millions of Yen
Contract or Notional AmountDue after One Fair Value
Hedge Accounting Method
Type of Derivatives
Major Hedged Item
Total
Year
Normal method
Interest rate swaps— Loans andFloating rate receipt/ investment
fixed rate payment
securities¥92,361¥40,324¥(623)
Special matching criteria
Interest rate swaps—
Floating rate receipt/(310)
fixed rate payment Loans
44,872
31,410
Other–
Buying
Loans
250
250
Total
¥(933)

Total

Company
Information

Notes:
1. The above transactions are stated at fair value and unrealized gains (losses) for the years ended March 31, 2021 and2020, are recognized in the consolidated statement of income.
2. The fair value of interest rate-related OTC transactions is determined using the discounted present value or optionpricing models, and the fair value of currency-related OTC transactions is determined using the discounted present
value.

Hedge Accounting Method

Strategy¥ 343

Thousands of U.S. Dollars
Contract or Notional AmountDue after One Fair Value
Type of Derivatives
Major Hedged Item
Total
Year
Interest rate swaps— Loans andFloating rate receipt/ investment(5,627)
fixed rate payment
securities$834,260
364,230
Interest rate swaps—
Floating rate receipt/(2,800)fixed rate payment Loans
405,311283,714
Other–
Buying
Loans
2,258
2,258
$(8,427)

Va l u eInterest rate-related
over-the-counter(“OTC”) transactions:Interest rate swaps:
Fixed rate receipt/¥ 10,624 ¥10,624
floating rate payment
Floating rate receipt/
10,748 10,748
fixed rate payment
Currency-related OTC
transactions:
36,184 2,214
Currency swaps
Foreign exchange
forward contracts:
200,656 40,716
Selling
46,127 40,716
BuyingCurrency option:
Selling
29,631 22,900
29,631 22,900
BuyingUnrealized
Gains/
Losses2020
Contract or Notional
AmountNormal method

Vision2021
Contract or Notional
AmountThousands of
U.S. Dollars
2021
Contract or Notional
AmountHedge Accounting Method

MissionDerivative Transactions to Which Hedge Accounting Is Not AppliedWith respect to derivatives to which hedge accounting is not applied, contract or notional amount, fair value, and unrealized
gains/losses, and the calculation method of fair value are as shown below. Note that the contract or notional amounts of thederivatives which are shown in the table do not represent the amounts of the Bank’s exposure to credit or market risk.

Millions of Yen
Contract or Notional AmountDue after One Fair Value
Type of Derivatives
Major Hedged Item
Total
Year
Interest rate swaps— Loans andFloating rate receipt/ investment
fixed rate payment
securities¥224,744¥94,777¥(1,341)
Interest rate swaps—
Floating rate receipt/(636)
fixed rate payment Loans
54,965
48,135
Other–(1)
Buying
Loans
416
416
¥(1,979)$33,059

1,905

1,300

11,742

3,152
1,842

364
217

437
143

3,287
1,960

9,655

1,190

1,000
538

10,748Notes:* 1 Company whose voting rights are majority owned by a director or his close relatives (including subsidiaries ofsuch company)* 2 Terms are substantially the same as for similar transactions with third parties.
* 3 Amounts of transactions were reported at the average balance for the period.
* 4 Mr. Minokichi Akaizawa, a close relative of a director, passed away on November 14, 2018. Since theinheritance procedures are underway, the transaction in the above table is shown in the name of the deceased.

76

THE 77 BANK INTEGRATED REPORT77

30. NET INCOME PER SHARE

b. Transactions between Consolidated Subsidiaries and Their Related Parties

2020

¥29

¥30

$261

4

2

36

Millions of Yen
Related Party

Account Classification*2

Department Store Fujisaki Co., Ltd.*1 Fees and commissions
Lease receivables andinvestments in leases

¥13

$117

¥15

Notes:* 1 Company whose voting rights are majority owned by a director or his close relatives (including subsidiaries ofsuch company)* 2 Terms are substantially the same as for similar transactions with third parties.

29. SEGMENT INFORMATION

Related Information for the Years Ended March 31, 2021 and 2020
Information by Service Line
Millions of Yen
2021¥41,609¥45,225

Lease

Other

¥9,085¥24,055

Total¥119,976

Millions of Yen
2020
Loan

¥41,944¥43,501

Lease

Other

¥8,706¥22,773

Total¥116,926

Thousands of U.S. Dollars
2021

External customers

Loan

Securities
Investment

Lease

Other

$375,837$408,499$82,061$217,279

Total$1,083,696

Information about Geographical Area
Information about geographical areas is omitted because the Companies conduct banking and other related activities
only in Japan and do not have foreign subsidiaries or foreign branches.
Information about Major Customers
Information about major customers is not presented because there are no customers who account for over 10% of
ordinary income.
Information about Asset Impairment Losses
Information about asset impairment losses for the years ended March 31, 2021 and 2020, is omitted because the only
reportable segment is “Banking” and “Other” is immaterial.

EPS¥16,468

73,885¥222.89¥18,261

73,941¥246.97$2.01

Year Ended March 31, 2020
Basic EPS—Net income attributable
to common stockholders

The Bank’s shares held by the directors’ compensation BIP trust that are recorded as treasury stock under “Equity” areincluded in the treasury stock to be deducted when computing the average number of shares during the fiscal year forthe calculation of basic net income per share.
The average number of shares of the treasury stock deducted in computing basic EPS was 378 thousand sharesand 412 thousand shares, for the years ended March 31, 2021 and 2020, respectively.
Diluted EPS for the years ended March 31, 2021 and 2020, is not shown because there were no potential shares.

31. SUBSEQUENT EVENTS
Cash Dividends
At the Bank’s general meeting of stockholders held on June 29, 2021, the Bank’s stockholders approved the following
appropriations of retained earnings:
Thousands ofMillions of Yen U.S. Dollars
Year-end cash dividends, ¥25.00($0.225) per share¥1,856$16,764
Note: Above total amount of cash dividends includes dividends for the Bank’s shares held by BIP trust in an amount of ¥9million ($81 thousand).
Disposal of Treasury Stock through a Third-Party Allotment
The Bank resolved at its Board of Directors’ meeting held on July 30, 2021, to dispose of its treasury stock through athird-party allotment (the “disposal of treasury stock”), as follows:a. Overview of the disposal of treasury stock(1) Disposal dateAugust 25, 2021
(2) Type and number of shares
446,900 shares of common stock
to be disposed of(3) Disposal amount¥1,149 ($10.37) per share(4) Total disposal amount¥513,488,100 ($4,638 thousand)(5) Planned subscriber
The Master Trust Bank of Japan, Ltd.
(BIP trust account: 76097 account)
The Master Trust Bank of Japan, Ltd.
(BIP trust account: 76137 account)(6) Other
The disposal of treasury stock is subject to the effectuation of the notification pursuant to the
Financial Instruments and Exchange Act.

Financial
SectionExternal customers

Securities
Investment

U.S. Dollars

Company
Information

Loan

External customers

Securities
Investment

Basic EPS—Net income attributable
to common stockholders

Yen

Strategy

Since the reportable segments of the Companies consist only of the “Banking” segment and since the “Other”
segment is immaterial, segment information is omitted.

Year Ended March 31, 2021

Millions of Yen
Thousands of Shares
Net Income
Weighted-Average
Attributable to
SharesOwners of the Parent

Va l u e

Description of Reportable Segments
The Companies are principally engaged in the banking business and also leasing business and other financial
services. The reportable segments of the Bank are the segments for which separate financial information is available,
and are subject to periodic review by the chief operating decision maker to determine the allocation of management
resources and assess performance.

Basic net income per share (“EPS”) for the years ended March 31, 2021 and 2020, is as follows:

Vision2021

Thousandsof U.S.
Dollars
2021

Balance at End of Year
Thousandsof U.S.
Millions of Yen
Dollars
2021
2020
2021

MissionTransactions for the Yearb. Purpose and reason of disposal
The Bank has resolved at its Board of Directors’ meeting held on May 14, 2021, to continue and make additional
contributions to the performance-linked stock compensation system (the “System”), which was introduced for the
Bank’s executive directors and executive officers (“directors, etc.”) for the purpose of enhancing motivation to makecontributions to improving the medium- to long-term performance and corporate value by further clarifying the linkage
between compensation to directors, etc. and stock value of the Bank.
In line with the continuation of the System, the disposal of treasury stock will be conducted by way of allotment to
The Master Trust Bank of Japan, Ltd., which is a co-trustee of the two BIP trust agreements concluded between the
Bank and Mitsubishi UFJ Trust and Banking Corporation.

78

THE 77 BANK INTEGRATED REPORT79

― Independent Auditors’ Report ―MissionVisionVa l u eStrategy
Company
Information
Financial
Section80

THE 77 BANK INTEGRATED REPORT

81

Mission

VisionVa l u eStrategy

Company
Information

Financial
Section83
THE 77 BANK INTEGRATED REPORT

82

― Capital Adequacy Ratios ―MissionTHE 77 BANK, LTD. AND CONSOLIDATED SUBSIDIARIESMarch 31, 2021
Thousands of
U.S. Dollars

Millions of Yen

Consolidated (Domestic standard)

Risk-adjusted assets: (B)

2020

10.39

10.31

438,988422,268

3,965,206

4,224,922

4,095,358

38,162,063

Capital adequacy ratio (Domestic standard) = (A)/(B) x 100 (%)(A)
Capital:Risk-adjusted assets: (B)

2021

2020

2021

10.14

10.14

425,215412,272

3,840,800

4,190,814

4,062,387

37,853,978

Va l u e

Thousands of
U.S. Dollars

Millions of Yen

Non-Consolidated (Domestic standard)

2021
VisionCapital adequacy ratio (Domestic standard) = (A)/(B) x 100 (%)(A)
Capital:2021

Strategy
Company
Information
Financial
Section84

THE 77 BANK INTEGRATED REPORT85

― Non-Consolidated Balance Sheet (Parent Company) ―― Non-Consolidated Statement of Income (Parent Company) ―7,862
19,313
46
259
5,474
258
43,73573,142(56,855)¥9,817,924

8,187
19,315
73
282
4,053
259
45,25862,405(58,226)¥8,751,857

71,014
174,446
415
2,339
49,4442,330
395,041
660,662(513,548)$88,681,456¥8,551,689

36,130186,315
983,660
28,145,632
46,043,537
52,976

24,658
8,937
368,623(6,132)
396,087
106,085(375)
105,709501,797¥9,817,924

24,658
8,937
357,402(6,200)384,798
55,917(826)
55,091
439,889¥8,751,857

222,726
80,724
3,329,626(55,387)
3,577,698
958,224(3,387)
954,827
4,532,535$88,681,456

233,664
5,394,318
1,400
84,807
7,379
2,809
7,262
219,763
395,041
558,377
84,148,920¥ 41,569¥ 41,881$375,476

29,834406
17,251
1,194
16,856
107,113

28,732242
16,968113
16,935
104,873

269,478
3,667
155,821
10,784
152,253
967,509

Expenses:
Interest expense:
Interest on deposits
Interest on call money
Other
Fees and commissions
Other operating expenses
General and administrative expenses
Other expenses
Total expenses

325
67
916
7,431
13,70952,137
10,13984,727

764
277
1,284
7,279
6,181
55,016
9,532
80,335

2,935
605
8,273
67,121
123,828
470,933
91,581
765,305

Income before income taxes

22,38524,538202,194

Income taxes:
Current
Deferred
Total income taxes

4,891
2,559
7,451

7,408
(188)
7,220

44,178
23,11467,301¥ 14,934¥ 17,317$134,892

Net income

THE 77 BANK INTEGRATED REPORT

Financial
Section$77,244,052

25,869597,205
155
9,389
817
311
804
24,33043,73561,8189,316,127¥7,888,480
8,706
11,986280,257
116
14,565
735
337
860
229
45,25860,434
8,311,967

Income:Interest income:Interest on loans and discounts
Interest on dividends on trading account andinvestment securities
Other
Fees and commissions
Other operating income
Other income
Total income

Thousands of
U.S. Dollars
2021

Company
Information

86$12,391,030

4,000
20,627
108,901
3,116,003
5,097,480
5,865¥ 747,051
429
4,000
18,87382,3442,913,386
4,894,634
9,528

Millions of Yen
2021
2020

Strategy

Equity:Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Unrealized gains on available-for-sale securities
Deferred losses on derivatives under hedge accounting
Total valuation adjustments
Total equity
Total¥1,371,811

Thousands of
U.S. Dollars
2021

Va l u e

Liabilities:
Deposits
Call money
Payables under securities lending transaction
Borrowed money
Foreign exchange liabilities
Liability for retirement benefits
Reserve for stock compensation
Reserve for reimbursement of deposits
Reserve for contingent losses
Deferred tax liabilities
Acceptances and guarantees
Other liabilities
Total liabilities

Millions of Yen
2021
2020

VisionAssets:Cash and due from banks
Call loans and bills bought
Debt purchased
Trading account securities
Money held in trust
Investment securities
Loans and bills discounted
Foreign exchange assets
Tangible fixed assets:
Buildings
Land
Lease assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Customers’ liabilities for acceptances and guarantees
Other assets
Reserve for possible loan losses
Total

THE 77 BANK, LTD.
Year Ended March 31, 2021

MissionTHE 77 BANK, LTD.
March 31, 2021

87

― Loan Portfolio ―Mission

Loan Portfolio by Industry

Japan’s offshore banking accounts
Financial institutions
Total

—

Domestic offices (Excluding Japan offshore banking accounts)
Manufacturing

General reserve for loan losses
Specific reserve for estimated loan losses on certain doubtful loans
Total

88

Financial
SectionJapan’s offshore banking accounts
Financial institutions
Total

Company
Information¥4,894
445
6
5
3
146
203
21
121
398
360
1,041
340
623
1,176

Agriculture and forestry
Fisheries
Mining and quarrying of stone and gravel
Construction
Electricity, gas, heat supply and water
Information and communications
Transport and postal activities
Wholesale and retail trade
Finance and insurance
Real estate and goods rental and leasing
Services, N.E.C.
Government, except elsewhere classified
Other

Reserve for Loan Losses$46,043

Billions of Yen
2020

Loan Portfolio by Industry

Securities
Commercial claims
Real estate
Subtotal
Guaranteed
Unsecured
Total—¥5,097

Strategy

Agriculture and forestry
Fisheries
Mining and quarrying of stone and gravel
Construction
Electricity, gas, heat supply and water
Information and communications
Transport and postal activities
Wholesale and retail trade
Finance and insurance
Real estate and goods rental and leasing
Services, N.E.C.
Government, except elsewhere classified
Other$46,043
4,007
61
37
27
1,503
1,946
187
1,115
3,687
3,327
9,988
3,285
5,922
10,945

Va l u e¥5,088
443
6
4
3
166
215
20
123
408
368
1,105
363
655
1,211

VisionDomestic offices (Excluding Japan offshore banking accounts)
Manufacturing

Loans by CollateralMillions of
U.S. Dollars
2021

Billions of Yen
2021—¥4,894
Billions of Yen
2021
2020

Millions of
U.S. Dollars
2021

Billions of Yen
2021
2020

Millions of
U.S. Dollars
2021

¥

5
17
844
867
1,368
2,861
¥5,097

¥30
26
¥56

¥

5
19
826
851
1,283
2,759
¥4,894

¥28
29
¥58

$

46
158
7,629
7,834
12,36425,844$46,043$274
239$513