Annual Repor t 2019

Local Industries in Yamanashi Prefecture
Wine

Sake

23.4% share of shipment amount ranks second in Japan.
Yamanashi wine was designated for a special label by the National
Tax Agency (National Tax Agency).

Traditional Japanese Paper

Silk Fabric

Shipment amount of Shoji paper and Calligraphy paper ranks
second in Japan.

Shipment amount of ties ranks third in Japan.
Shipment amount of down quilts ranks third in Japan.

Jewelry

FruitsLocal Industries
in Yamanashi
Prefecture
Shipment amount of jewelry ranks second in Japan.
Shipment amount of jewelry ranks second in Japan.

Harvest of grapes, peaches and Japanese plums ranks first in Japan.

Mineral Water

32.7% share of shipment amount ranks first in Japan.

Knit Products

Inden Leather

Preparations for High-Speed Transportation Network
Expected Effects
Increase in tourists from Kansai and Tokai regions, increase in opportunities for receiving orders, expansionof logistic facilities, and increase in residents due to expanded commuting radius to Greater Tokyo, etc.

Shinkansen Maglev Train· Oct. 2014: Minister of Land, Infrastructure, Transport andMap of Shinkansen Maglev Train RouteTourism approved the start of construction, with opening
Scheduled to start operation in 2027

planned for 2027.
Request for certain segments to enter service by the start ofthe 2020 Tokyo Olympic Games.

Nakatsugawa

Shinagawa

Kofu

Iida

Sagamihara· Dec. 2015: Construction began on the Yamanashi section of
the Southern Alps Tunnel (communication route).

Nagoya· Jan. 2016: Shinagawa Station construction

Osaka· Nov. 2016: Construction began on the Nagano section ofTravel time
Shinagawa – Kofu
25 minShinagawa – Nagoya 40 min
Shinagawa – Osaka 67 min

Nara

the Southern Alps Tunnel.

Yamanashi Maglev Test Line

· Mar. 2017: Yamanashi Prefecture creates “Linear(*) Station locations further
west of Nagoya are
undecided.

Environmental Future City Improvement Policy.”· Apr. 2018: Construction began on the Yamanashi section of
the Southern Alps Tunnel (mail line).

Chubu Odan Expressway
Saku-Komoro
JCT

Saku-Minami IC – SakuKomoro JCT
Opened to traffic in Mar. 2011

Chuo Expressway

YachihoJoshin-Etsu Expressway
Yachiho Heights IC –Sakuminami IC
Opened to traffic in Apr. 2018

Nagasaka

OtsukiTakaosan IC

Minami-Alps

Masuho IC – Rokugo IC
Opened to traffic
on Mar. 19, 2017
Rokugo IC – Shimobeonsen
Hayakawa IC
Opened to traffic on Mar. 10, 2019
Shimobe Onsen Hayakawa IC –Nanbu IC
Scheduled to open to traffic at
the end of 2020
Nanbu IC – Tomizawa IC
Scheduled to open to
traffic in summer of 2019

MasuhoChuo Expressway

RokugoFujiyoshida
Nakatomi
ShimobeOnsen
Hayakawa
Minobusan

Ken-O Expressway

Hachioji JCT

Kofu

ShiraneNishi Kanto Expressway

Nagasaka JCT – Yachiho IC“Planning stage assessment”
began in Dec. 2010

FutabaChubu Odan Expressway

OkegawaKitamoto IC

Higashifujigoko Road
Subashiri IC

Subashiri IC – Gotenba IC
Began site negotiations in
Yamanashi Pref. in 2012:
Requests opening by 2020

Gotenba IC

Takaosan IC – SagamiharaAikawa IC
Opened to traffic on Jun. 28, 2014

SagamiharaAikawa IC
Ebina IC

Shin-Tomei
Expressway

Nanbu

Gotenba JCT

Tomizawa

Tomizawa IC – Shin-Shimizu JCT
Opened to traffic on Mar. 10, 2019
Shin-Shimizu
JCT

Tomei Expressway

THE YAMANASHI CHUO BANK 20191

Access between Kofu City and Shizuoka City within 1
hour and 40 minutes (1 hour faster) via the Shizuokabound opening of the Chubu Odan Expressway

Our Mission
Region-Based Operations and Sound Management
Maintaining a close relationship with the communities in the region where we operate,
we will contribute to the prosperity of the region and the development of its economy,
with a commitment to sound management that enjoys the trust of our customers,
while bolstering our business operations.

Long-Term Vision (Value Creation Bank)
As we approach our 150th founding anniversary, we aim to be a financial groupthat all stakeholders can rely upon to realize an enriched regional community,
delighted customers, fulfilled employees, and satisfied shareholders.

Basic Strategies of Medium-Term Management Plan
“Value+ 2022”

YamanashiTokyo

Mt. Fuji

Enhance Customer Touchpoints— Aiming to be a bank that connects with all customers—●
Create Common Values— Aiming to be a bank that adapts to new environments—●
Improve Personnel Vitality— Aiming to be a bank where diverse human resources reach their potential—●

Head Office

The 3S Action Guidelines
Smile, Speed and Simple

Profile (as of March 31, 2019)
Corporate Name:The Yamanashi Chuo Bank, Ltd.

Head Office:20-8, Marunouchi 1-chome, Kofu, Yamanashi

Established:

December 1, 1941

President:

Mitsuyoshi Seki

Common Stock:¥15,400 million

Number of Shares Issued:
33,983,000 shares

Stock Listing:First Section of the Tokyo Stock Exchange

Long-Term Credit Rating:A−(Rating and Investment Information, Inc.)

Network:

Domestic: Head Office and Branches: 90 (including 1 Internet Branch), District Offices: 2,
Corporate Branch: 1
Overseas: Hong Kong Representative OfficeBusinesses:

The Yamanashi Chuo Bank Group comprises the Yamanashi Chuo Bank and four
consolidated subsidiaries. Centered on its core banking business, the Group provides anintegrated financing service that includes a leasing and credit card business. The Bank is
the leading local bank in Yamanashi Prefecture, and its sphere of operations encompasses
both the prefecture and the western part of the Tokyo metropolitan region.

Contents
3 Consolidated Financial Highlights
4 Message from the President
8 Formulation of the Medium-Term Management Plan “Value+ 2022”
18 Activities for Corporate Governance21 Activities to Tackle Environmental Problems
22 Activities to Revitalize the Regional Economy
24 Activities for Regional Revitalization
25 Activities to Contribute to the Regional Community
26 Financial Review
27 Consolidated Balance Sheets
29 Consolidated Statements of Income
31 Consolidated Statements of Comprehensive Income
32 Consolidated Statements of Changes in Net Assets

35 Consolidated Statements of Cash Flows
37 Notes to Consolidated Financial Statements
63 Corporate Data
64 Board of Directors and Corporate Auditors

Forward-looking statements
Statements contained in this report regarding the Bank’s future
performance do not constitute statements of historical fact, and are thus
subject to a number of risks and uncertainties. Readers are therefore
cautioned not to place undue reliance on forward-looking statements,
as factors beyond the Bank’s control and outside its ability to predict,including general economic conditions and market fluctuations, could
cause results to diverge materially from the Company’s projections.

THE YAMANASHI CHUO BANK 20192

Consolidated Financial Highlights
The Yamanashi Chuo Bank, Ltd. and Consolidated Subsidiaries
Fiscal years ended March 31

Millions of yen

2015

2016

2017

2018

2019

Ordinary Income

50,33555,71855,73654,12052,353

Ordinary Profit

13,464

13,82910,001

7,570

7,458

Profit Attributable to Shareholders of the Parent

8,753

9,452

7,282

4,920

4,908

Comprehensive Income

40,346

106(15,464)

2,135

6,740

Net Assets

237,440

235,158

216,977

217,311

222,388

Total Assets

3,155,903

3,239,117

3,285,408

3,306,502

3,480,808

Net Assets per Share (Yen)

1,367.58

1,370.62

1,277.73

6,430.17

6,652.04

Net Income per Share (Yen)

50.38

54.91

42.95

146.48147.15

Capital Adequacy Ratio (Domestic Standard, %)

17.35

18.05

16.82

14.14

13.80

Return on Equity (%)

4.40

4.03

3.25

2.29

2.25

Price Earning Ratio (Times)

10.44

7.52

11.59

14.95

9.31

Cash Flows from Operating Activities(3,806)70,287(91,511)79,72582,750Cash Flows from Investing Activities(61,232)(17,638)

245,900(27,367)

124,502

Cash Flows from Financing Activities(2,018)(2,397)(2,868)(1,783)(1,681)

Cash and Cash Equivalents

59,058109,309260,830

311,403516,974

Notes(1) Amounts do not include consumption and local taxes payable by the Bank and its consolidated subsidiaries.
(2) The Bank consolidated its shares at a ratio of five shares to one share on the effective date of October 1, 2018. Accordingly, net assets per share and net income
per share are calculated on the assumption that the consolidation of shares was conducted at the beginning of the fiscal year ended March 31, 2018.
(3) The capital adequacy ratio is calculated on a consolidated basis in accordance with the Bulletin Notification No. 19 issued by the Financial Services Agency in2006 under Paragraph 2, Article 14 of the Banking Law. The Bank has adopted the Japanese standard for the calculation.

Total assets

Profit attributable toshareholders of the parent

ROE/
Capital adequacy ratio(Domestic standard)(¥ billion)(¥ billion)

(%)

3,500

10.0

18.0

3,400

15.0

8.0
3,300

Capital adequacy
ratio

12.0
6.0

3,200

9.0
3,100

4.0

2.0

3.0

2,900
0.0

2,800
March 31 2015

ROE

6.0

3,000

2016

2017

2018

2019

FY

0.0

2015

2016

2017

2018

THE YAMANASHI CHUO BANK 2019

3

2019

FY

2015

2016

2017

2018

2019

Message from the President“Value+ 2022”
Theme during the Medium-Term Management Plan
A stage for creating new value and implementing bold structural reforms that
anticipate the changes of the times (First stage for achieving the long-term vision)

President

Mitsuyoshi Seki

THE YAMANASHI CHUO BANK 20194

Message from the President

The Economy of Yamanashi Prefecture—Our Business Base
General Prefectural Production (fiscal 2015):
Real Growth Rate (fiscal 2015):
Shipment Value of Production in Prefecture(2017):¥3,160 billion
2.2%

Shares in Yamanashi Pref. (%)(as of March 31, 2019)13.5¥2,502 billion

Share

Ranking

Mineral water

44.0

32.7

No. 1

Numerical control robots

202.5

69.5

No. 1

Semiconductors / IC measuring instruments

35.2

20.3

No. 1

Other elements for semiconductors

58.7

19.8

No. 2

(%)

Loans

49.7

27.9

Shipment Value(¥ billion)

9.9
6.1

Deposits

Major Products and Their Share in Japanese Market
Products

1.8

32.4
8.2

7.1

Yamanashi Chuo Bank
Major banks
Shinkin banks/credit unions
Agricultural cooperatives
Semi-government institutions/
other

Yamanashi Chuo Bank
Major banks
Shinkin banks/credit unions
Agricultural cooperatives
Semi-government institutions/other

I would like to take this opportunity to thank the customers andvitality. To execute the plan, every executive and employee will

patrons of the Yamanashi Chuo Bank.

act based on the 3S Action Guidelines, which are Smile, Speed

In the past few years, financial institutions have been called

and Simple. In accordance with these guidelines, as we give top

upon to address increasingly diverse and sophisticated needs inpriority to taking our customer-first activities to an even higher

the marketplace. This trend has been driven by factors such aslevel, we will work to deepen our relationships of credibility anda continuing decline in Japan’s population and an aging society

trust with customers and the broader regional community.

with a low birthrate; rapid advances in digitalization, particularly

The Bank will continue to maintain sound financial content

artificial intelligence (AI), the Internet of Things (IoT), andthat earns the trust of local communities, customers and

FinTech; and changes in the lifestyles of customers. Moreover,shareholders, and strive to provide even higher-quality services.

the operating environment for financial institutions has comeI ask for your continued support and encouragement goingunder further pressure, mainly due to an uncertain global

forward.

political and economic climate, in addition to the continuation

Below, we present an overview of our business performanceof the Bank of Japan’s negative interest rate policy.

for fiscal 2018 (April 2018 to March 2019), together with a report

In this operating environment, the Bank launched its new

on future management plans.

+medium-term management plan “Value 2022,” in April 2019.
The plan covers the three-year period from April 2019 to March
2022.
Under the plan, we have announced a long-term vision forour 150th anniversary in 2027 called “Value Creation Bank.” To
realize this vision, every executive and employee will makea concerted effort to implement the following three basic
strategies over the plan’s three-year period: enhance customer

President

Mitsuyoshi Seki

touchpoints, create common values, and improve personnel

THE YAMANASHI CHUO BANK 2019

5

43.4

Message from the President

Market Trends in Fiscal 2018

planning formulation and for business growth and development

In the fiscal year ended March 31, 2019, the Japanese economy

Business Startups and Secondary Startups and our Entrepreneur

staged a gradual recovery overall, supported by factors such as

Seminar for Women. In addition, we also implemented measurescontinuing growth in production, primarily in export-related indus-

to support asset succession (business succession and estate plan-

tries, along with an upturn in capital investment and consumerning). In this area, the Bank first sought to grasp a full picture of our

spending. However, in the second half of the fiscal year, exports

customers’ total asset portfolio. Based on this knowledge, we thenstruggled to grow mainly due to the impact of U.S.-China tradeconducted “total asset portfolio-based sales activities” to propose

tensions and production also started to soften. Based on these andfundamental solutions to the issues faced by our customers.

after establishment. These measures included our Schools forother factors, the economic outlook has become uncertain.

We held our Agri-Business School program for businessIn Yamanashi Prefecture, the economy followed a path ofoperators in the agriculture and food-related fields. In this course,

gradual recovery in the first half of the fiscal year. Notably, there

participants learn about the latest agricultural business manage-

was a high level of production centered on the machinery indus-

ment practices. Concurrently, we carried out the “Yamanashi Foodtry, and capital investment and consumer spending remained firm.

Sector Business Matching Fair” and related events to help our

However, economic trends started to show signs of softening incustomers develop and expand their sales channels.

the second half of the fiscal year. There were growing production

In the tourism field, we implemented a range of measures tocutbacks in some parts of the machinery industry, and demand

address the growing numbers of inbound tourists visiting Japan

also started to show signs of settling down.

in the run-up to the Tokyo Olympics and Paralympics in 2020. We

Looking at financial market conditions, in the foreign exchange

supported our business customers through our Tourism Advisors,market, the yen generally weakened in response to factors such asheld seminars, and helped our business customers to welcome

economic conditions and interest rate trends in the U.S. From theinbound tourists.

beginning of 2019, the yen began to strengthen as the prospects

In international operations, the Bank’s Asia Desk, a unit special-

for interest rate hikes in the U.S. became less likely. In the stock

izing in overseas business support, provided information andmarket, stock prices trended firmly, with the Nikkei Stock Averagevarious support services tailored to customer needs. Specifically,reaching above the ¥24,000 level at one point. Thereafter, however,for customers seeking to expand into new overseas markets, we

stock prices showed considerable volatility. The Nikkei Stockoffered proposals to tour overseas markets and supplied credit

Average fell temporarily below ¥20,000, reflecting factors such as

survey reports on overseas companies. For customers seeking toconcerns about the overseas economic outlook for the U.S. andexpand their overseas sales channels, we made buyer matchingother countries.

proposals utilizing various business meetings and the internet.

Domestic long-term interest rates remained at around zero

Providing Solutions to Individual Customers

under the interest rate policy of the Bank of Japan.

In accordance with our Basic Policy on Fiduciary Duty (basic policy

Business Progress in Fiscal 2018

on customer-oriented business operations), we strove to provide

Against this financial and economic backdrop, in the final year ofprovided broad support to meet customers’ asset formation needs

S.T.E.P. up 2019, the Bank’s three-year medium-term management

by proposing the use of programs such as Tsumitate NISA and theplan running from April 2016 through March 2019, we proactively

iDeCo private pension plan.

solutions and enhance our product lineups. In addition, we

implemented the following measures.

Meanwhile, to fulfill the funding needs of its customers, theBank improved the performance of its housing, auto, and educa-

Providing Solutions to Corporate and Sole
Proprietor Customers

tional loans, implemented preferential interest plans for housing

In fiscal 2018, we redoubled our efforts to conduct business feasi-

Through these measures, we provided products and services inbility studies. To do so, we first worked to understand and organize

response to customers’ needs.

loans, and conducted campaigns for auto and educational loans.

information on the actual state of our customers’ businesses,
such as their business models and management issues, throughActivities for Regional Revitalization

in-depth discussions with customers. We then carried out detailed

Three regional banks, specifically the Bank, The Bank of Yokohama,solution-oriented sales activities and helped customers to improveLtd. and The Shizuoka Bank, Ltd., played a central role in establish-

their businesses.

ing the Council for Revitalization of the Region Spanning the

In the field of support for the startup and establishment of busi-

Borders of Kanagawa, Yamanashi and Shizuoka Prefectures.

nesses, we implemented measures such as support for business

Through this council, the Bank worked to promote tourism in the

THE YAMANASHI CHUO BANK 20196

Message from the President

Fuji-Hakone-Izu region, which straddles the prefectural borders

billion higher than the target. This was mainly due to increases

of Yamanashi, Kanagawa and Shizuoka Prefectures. In addition,

in loans to small-and medium-sized enterprises (SMEs) andthe Bank held public-private partnership promotion seminars toindividual loans.

assist with efficient fiscal management through the introduction

The Bank did not achieve its targets for the remaining twoof Public Private Partnership-Private Finance Initiative (PPP-PFI)

indicators, specifically profit and the year-end deposit balance.

programs. The Bank also set up “Move-to-Yamanashi Desks” in its

This was mainly because declining market interest rates due to thebranches in Tokyo and Kanagawa Prefecture. These desks wereBank of Japan’s negative interest rate policy had a greater-than-set up to upgrade and expand the Bank’s relocation counseling

anticipated impact on those indicators.

framework for attracting and retaining Yamanashi Prefecture’s

Outlook

resident population.
In other initiatives, the Bank supplied funds to support thetraining and development of business leaders who will shape

Looking at business forecasts for fiscal 2019, interest and dividends

the future of their communities, and the creation and growth ofon securities are expected to decrease, while interest on loans will

employment in the region. The Bank supplied the funds throughincrease. Based on this outlook, the Bank is forecasting consoli-

such channels as the Yamanashi Chuo Bank Regional Revitalization

dated ordinary profit of ¥5.4 billion, down ¥2.0 billion year on year,

Fund and the Yamanashi New Business Support Fund.

and profit attributable to shareholders of the parent of ¥3.5 billion,
down ¥1.4 billion year on year. On a non-consolidated basis, theResults and Business Performance in the Final
Year of the Medium-Term Management Plan

Bank is forecasting ordinary profit of ¥4.7 billion, down ¥1.8 billion
year on year, and net income of ¥3.2 billion, down ¥1.2 billion year
on year.

The Bank implemented the S.T.E.P. up 2019 medium-term

In the fiscal year under review, the interim dividend was ¥17.50

management plan over the three-year period from April 2016 toper share (after adjusting for the stock consolidation). The Bank also

March 2019.

plans to pay a year-end dividend of ¥17.50 per share. Consequently,

The targets (non-consolidated) for the final year of thethe annual dividend will be ¥35 per share (after adjusting for the

medium-term management plan (fiscal 2018) and the results

stock consolidation), and the dividend payout ratio will be 25.97%(non-consolidated) for the fiscal year under review (fiscal 2018)

on a non-consolidated basis. Moreover, the Bank conducted

are outlined below.

a stock buyback of 380,000 common shares from February to

Under the plan, the Bank set four indicators as its targets. The

March 2019 (total acquisition value: ¥522 million). As a result, theBank has achieved two of these targets: net business profit andshareholder return ratio stood at 37.48% on a non-consolidated

the year-end loan balance.

basis. In February 2019, the Bank cancelled 1,000,000 shares ofNet business profit amounted to ¥11.3 billion, ¥1.8 billion

common stock. In fiscal 2019, the Bank plans to pay an interim

above target.

dividend of ¥17.50 per share and a year-end dividend of ¥17.50 per

The year-end loan balance stood at ¥1,710.8 billion, ¥120.8

Indicator

share, making the annual dividend ¥35 per share.

Fiscal 2018 target

Fiscal 2018 result

Difference(¥ billion)(¥ billion)(¥ billion)

Net business profit

9.5

11.3

1.8

Profit

6.0

4.4

(1.6)

Year-end deposit balance*

3,260.0

3,117.3(142.7)Year-end loan balance

1,590.0

1,710.8

120.8* Deposits and negotiable certificates of deposit + investment trusts (OTC balance) + public bonds (OTC balance)

THE YAMANASHI CHUO BANK 20197

Formulation of the Medium-Term Management Plan
“Value+ 2022”
In April 2019, the Bank launched its medium-term management plan “Value+ (“Value Plus”) 2022” covering the period
from April 2019 to March 2022. The plan is outlined below.

Management Policies

the Shinkansen maglev train. Meanwhile, a declining population

In order to realize Our Mission, the Bank and its Group companies

the prefecture. These issues reflect factors such as the aging ofare bringing together their collective capabilities and implement-

society with a low birthrate and young people moving out of theing a wide range of initiatives. This is so that they can accurately

prefecture.

and shortage of workers have become major social issues forIn the financial sector, the Bank of Japan has implemented

and promptly address increasingly diverse and sophisticateda negative interest rate policy for an extended period of time.

regional financial needs.

Faced with this situation, it has become an urgent priority for

Business Environment and Key Issues
Ahead

banks and other financial institutions to reshape their profit
structure. Meanwhile, innovative digital technology is expected toprofoundly transform conventional financial functions and services.

In Yamanashi Prefecture, our main business base, progress is being

In this environment, the Bank launched its medium-term

made on upgrading and expanding transportation infrastructure

management plan “Value+ 2022” in April 2019. Guided by the plan,ahead of developments such as the opening of the Chubu Odan

the Bank will implement three basic strategies to address key

Expressway through to Shizuoka and the start of operations ofissues ahead.

Value+ 2022

Plan period: April 2019 to March 2022

Our Mission

Region-based operations and sound management
Long-Term vision

Value Creation Bank

As we approach our 150th founding anniversary, we aim to be a financial group that all stakeholders can rely upon to realize an enriched regional community, delighted customers, fulfilledemployees, and satisfied shareholders.

Value+ 2022

Medium-Term Management Plan

—A stage for creating new value and implementing bold structural reforms that anticipate the changes of the times—(First stage for achieving the long-term vision)

Basic Strategies

Enhance Customer Touchpoints

Aiming to be a bank that connects with all customers

Create Common Values

Aiming to be a bank that adapts to new environments

Improve Personnel Vitality

Aiming to be a bank where diverse human resources reach their full potential

Increase the sophistication of the management andadministration approach

Strengthen CSR based on the SDGs and ESG principles

THE YAMANASHI CHUO BANK 20198

Formulation of the Medium-Term Management Plan
“Value+ 2022”

Positioning

Become a financial groupthat continues to create
new value
Realize growth throughvalue creation together
with the community
Realize an environment for
creating new value

Period of bold structural reforms for creating newvalue and future growth[Structural reform stage]

Period of continued new value creation andachieving a growth trajectory[Growth trajectory stage]

Period of achieving the long-term vision“Value Creation Bank”[Continued growth stage]

2nd Stage

3rd Stage(April 2022–March 2025)(April 2025–March 2028)

1st Stage

Value+ 2022
(April 2019–March 2022)

Quantitative targets for the final fiscal year of the medium-term management plan
Item
Interest on loans
Non-interest revenue

Quantitative targets

Item

17.5 or more

Net income(¥ billion)

9.0 or more

OHR
(Operating expenses/Core gross business profit)(¥ billion)

Quantitative targets
3.5 or more(¥ billion)

Under 80%

• Enhance Customer Touchpoints

sophisticated consulting needs. Through these efforts, the Bank will

The Bank will transform and expand existing branches into special-

work to enhance services for a wide range of customers.

ized function branches according to customer needs. Meanwhile,
the Bank will provide new services in keeping with the tide of digita-

The Bank will implement these measures based on the new

lization, such as smartphone apps that allow customers to complete

perspectives of “SDGs and ESG.” From these perspectives, the Banka variety of transactions and other procedures via the internet.

aims to achieve sustainable growth, by making a greater contribution to regional economic revitalization than before, along with

In addition, in order to further strengthen marketing capabilities
in the western Tokyo area, the Bank’s second home market, theimproving the value it provides to stakeholders. Moreover, the Bank

Bank will increase staff and upgrade the support system provided

will strengthen risk management, including anti-money launderingby the Head Office.

and counter-terrorist financing measures. The Bank will also implement compliance measures with an emphasis on adherence to all• Create Common Values

laws and regulations and other rules. By fulfilling the requests and

The Bank will implement consulting sales through in-depth

expectations of society appropriately, we will strive to retain andconversations with customers. In the process, the Bank will strive toimprove the public’s trust in the Bank.
Regarding the Corporate Governance Code, which prescribes

create common values with customers, as part of efforts to provide
value to them and maintain and improve sustainable profitability.

the behavioral standards for listed companies, the Bank aims

Concurrently, the Bank will substantially improve its productivity

to pursue the optimal form of corporate governance for theby using the latest digital technology and drastically revising

Bank, fully taking into account the intentions of the Corporate

business processes.

Governance Code, and to enhance its corporate value over the
medium to long term.

• Improve Personnel Vitality

The Group and all management and employees will work

In order to foster greater motivation and fulfilment among individual

together to contribute to community prosperity and economic

employees, the Bank will reform the personnel system, beginning

development.

with the development of new career paths, and nurture professional
human resources capable of addressing increasingly diverse and
THE YAMANASHI CHUO BANK 20199

Value+ 2022

Basic Strategy 1

Enhance Customer Touchpoints

Overall Vision for Enhancing Customer
Touchpoints

Expand transactions with corecustomers by optimizing the OTC
channelMove from mass market tocore market

Expand the transaction base with core customers by “optimizing

Existing customers(core)

the OTC channel” and with mass-market customers by “strengthening and expanding the non-OTC channel,” aiming to move up
from the mass market to the core market.

Existing customers(mass market)
Strengthen touchpoints and expand transactions
with mass-market customers by strengthening andexpanding the non-OTC channel

Expand the customer base(1) Optimize the OTC Channel
Optimize branches, liaisons, etc. as channels that can respond to customers’ needs “anytime, anywhere, and of any kind”
Strengthen the liaison channel Strengthen human resources
Increase quality by training personnel
Optimize the branch network Reform functions of full banking branches in Yamanashi Prefecture
Expand branches that have achieved efficiency gains through branches in branches
Expand branch functions
Next-generation branches
Spread and expand branches open on holidays and at night
Make effective use of branch space

Number of effective consultations with customers
up 30% (Compared with 2018)
Change approx. 20% of all branches to special function branches (Approx. 10 branches) (Compared with 2018)
Approx. 15% of branches in Yamanashi Prefecture (Approx. 10 branches) (Compared with 2018)
Shift to “next-generation-ready branches”
Spread and expand Life Square. Number of consultations increased by 10% (Compared with 2018)
Systems for drawing in people through the effective use of branch space

Strengthen marketing
capabilities

Nurture and redeploy sales
personnel

Streamline and rationalize
operations to specialize in sales• Focus Resources on the Western Tokyo Area
Human resources will be freed up through measures such as

western Tokyo area, which is a growth market. The Bank will estab-

optimizing branches in Yamanashi Prefecture and streamlining

lish the Western Tokyo Consulting Sales Department mainly throughoperations. These human resources will be concentrated in the

an intensive shift of personnel to sales.

Changes in Average Loan Balancein the Western Tokyo Area

Western Tokyo Area Market Size

371.3
331.1

Fertile western Tokyo market
255.2
198.1

(¥ billion)

273.7

222.2

Yamanashi
2017/3

2018/3

2019/32020/32021/32022/3(¥ billion)
Number of private business offices

170,000

Approx. 3.9 times Yamanashi Prefecture

Population

5,560,000

Approx. 6.8 times Yamanashi Prefecture

Number of households

2,600,000

Approx. 7.7 times Yamanashi Prefecture
THE YAMANASHI CHUO BANK 201910

A market with strong growth prospects

Value+ 2022

Basic Strategy 1

Enhance Customer Touchpoints(2) Strengthen and Expand the Non-OTC Channel
Strengthen and enhance the non-OTC channel as a channel that can respond to customer needs “anytime, anywhere,
and of any kind,” and achieve connections with all customers
Strengthen consultation
service stance

Respond to cashlesssociety

Strengthen connections withvarious customers at any
time by strengthening thenon-OTC channel

Meet various customers’
needs through cashlessservices

Strengthen links with theyounger generation withwhom the Bank has few
contact points

Optimize customer contact
points by ATM• Build online completion system• Build online consultation• Introduce QR code settlements• Introduce brand debit cards• Introduce “Wallet +”• Roll out bookless accounts at all• Strengthen ATM partnerships• Utilize the ATM network

schemeStrengthen contact points
with younger generation

branches• Rebuild call center-based sales
systemUse ATMs efficiently

efficiently and effectively• Optimize ATM functions,services, etc.

Use smartphone app “Wallet +” to strengthen connections with younger customers with whom the Bank has few contact
pointsSmartphone app “Wallet + ”
Home Screen

Balancemanagement“Wallet + ” is a new money service that seamlessly links

Target deposits

financial and non-financial services, plus users’ daily routinesand special occasions. Users first register their accounts atpartner financial institutions with the “Wallet + ” app. They
can then confirm their account balances and transaction
statements easily through the app. There is also a financial
function that allows users to open a savings account within
the app and save money. The app also provides content
distribution services on information related to finance andmoney matters. Users can also obtain discount coupons
supplied by partner companies.
Launch of service scheduled in autumn 2019

THE YAMANASHI CHUO BANK 201911

Value+ 2022

Basic Strategy 2

Create Common Values(1) Deepen and Expand the Consulting Field
Shift to consulting sales based on deep conversation with customers to realize “comprehensive financial services” andcreate shared value with customers by solving diverse issues
Deepen the consulting field

Expand the consulting field• Consulting support in step with life
stages• Develop business for wealthy segment
including corporates and individuals• Strengthen links with the Bank’s Group
companies

Realize comprehensive
financial services• Diversification of asset management• Enter new fields• Provide new consulting options• Diversify financing methods• Introduce new individual asset
management support

proposals

Expand contact points using the service platform

Build a Platform for Corporations Using
the CEO Club

Build a Service Platform to Meet the
Needs of an Aging Society

We will build systems for consulting functions that can adapt to

We will expand products and services that can provide secure,increasingly sophisticated and diverse customer needs.

comfortable living for senior customers and their families throughtransactions with the Bank, and build this into a service platform.

Continuous
management
support
Systematization ofoperations

Asset management andinheritance

Support thatmeets CEOs’
needs

Seniors with mental
capacity

Link to financial results
Motivate front line

Exchanges andprojects between
CEOs indifferent industries

Seniors who require an
adult guardianLife insurance(whole life insurance, etc.)

Trust agency services

Guardian support
deposits(to be released)

Inheritance trust(to be released)

Senior minding services
Secure, fulfilling living

Utilize the Yamanashi Chuo Bank CEO Club
Enhance services• Enhance online services

Onset ofdementia

Dementia insurance
Support services to prevent cognitive
function decline
MCI (mild cognitive impairment) careand recovery support

Nursing care support services

Reverse mortgages

Change main service partners• Enhance real-world services Hold seminars and courses, etc.
Strengthen consulting functions• Centralize seminars run individually by each division for
more efficient operation• Grasp CEO issues using questionnaires, cultivate deepertransactions and create openings for advancement

THE YAMANASHI CHUO BANK 201912

Value+ 2022

Basic Strategy 2

Create Common Values(2) Increase Productivity through BPI
Building a foundation for a next-generation business model in response to environmental changes by dramatically
improving the productivity of general banking operations through operation reforms, etc.

• Introduce electronic procedures and semi-self-service

Increase customer convenience by making procedures simpler and quicker• Introduce smart operation management

Strengthen sales structure through redeployment of human resources• Introduce electronic and consolidated operations

Increase labor productivity by shortening operation execution times

functions of tablets• Expand(receiving financing applications, financial product applications, etc.)
Branch operations• Automate reception operations (introduce semi-self-service terminals)
branches that have no back-office sections (establish middle offices)• Realize
Thoroughly consolidate
Expand operations consolidated at the Head Office•back-office operations, etc.
(business feasibility loans operations, personal loan operations, etc.)
Rationalize and increase
efficiency of reception
operations

LiaisonFinancing
Internal, etc.

Head Office
operations

Streamline organizationand operations

Head Office organization (consolidated overlapping fields, etc.)• Review• Standardize, consolidate, simplify, and abolish operations

Operations with acommon platform

Systemize and adopt
paperless operations

systems through use of the Smile Platform• Linkworkflows (introduce new groupware)• Utilize• Utilize advanced technology such as RPA and AI

Create Common Values

Increase customer
convenience

Strengthen sales structure
through redeployment of
human resources

Increase labor productivity

Goal

Reduction of operation time (annual): 200,000 hours (Compared with 2017)
Introduction of paperless operations (annual paper usage): (70%) (Compared with 2017)

THE YAMANASHI CHUO BANK 201913

Value+ 2022

Basic Strategy 3

Improve Personnel Vitality(1) Personnel Management to Promote Vitality in Individual Employees
Aim to create a highly motivated organization where individual employees experience fulfillment and pride by fully
utilizing their strengths and where everyone can play a role
Cultivate motivation and fulfilment in individual employees by reforming the personnel system (work style reforms)

Use personnel management to draw out the strengths andcapabilities of every employee

Increase productivity by creating a comfortable working
environment for all

Develop diverse
career paths

Develop diverse career paths in response to increasingly
specialized operations (consulting, etc.) in line withdiversification of customers’ needs

Promote flexible
working styles

Create diverse working conditions and promote flexible
working styles that emphasize work-life balance, such as
teleworking

Build a new
evaluation
systemBuild a more acceptable evaluation system that recognizes
positive efforts

Supportemployees
balancing workand home life

Actively support employees in balancing work and home life,
including by creating an environment that is easy for both men
and women to engage in childrearing and promoting use ofchildrearing leave

Promote young
and female
employees

Actively promote young and female employees, giving
them assignments suited to their ambition and ability

Promotecommunication

Practice communication with an awareness of each
employee’s strengths and create a fulfilling working
environment

Increase
opportunities forseniors

Create an environment where the experience andstrengths of senior employees can be fully used

Conduct healthpromotionmeasures

Build systems for maintaining and promoting the healthof individual employees with the main premise of anorganization where anyone can participate(2) Develop Specialist Human Resources (Professionals)
Create internal human resource development systems in which each employee achieves a real sense of growth anddevelop more diverse and sophisticated specialist (professional) human resources in the consulting field

Create an OJT system and develop professional human resources

Create an OJT system thatenables individuals to achievea real sense of growth

Develop professional humanresources for providing newvalue to customers

Foster self-improvementawareness to strengthen
fundamental business skills• Introduce systems to promote OJT• Introduce the “New Recruit and Young• Actively promote young employees to• Create a career advancement system•• Enhance tools for supporting

Employee Training Support Program”• Strengthen OJT through Head Office
staff guidance

specialist divisions

Enhance the comprehensive financial
services proposal capabilities of managers(Consulting such as asset management and leasing operations)• Actively dispatch staff to external

educational institutions and companies

THE YAMANASHI CHUO BANK 201914

related to self-improvement
self-improvement• Promote acquisition of challenging

high-level qualifications in specialist
fieldsValue+ 2022

Basic Priority 1 Increase the Sophistication of the Management and Administration Approach(1) Strengthen Earnings and the Risk Management Approach Using RAF
Encourage appropriate risk-taking and increase the risk-return ratio by engaging in building a risk appetite framework(RAF) to realize a risk appetite

Our Mission
Region-based operations and sound management
Management Vision and Business Model
Risk appetite framework (RAF)
Risk appetite(Risk appetite policy)
Quantitative items

Qualitative items

Link organically
Total budget for the medium-term
management plan

Stress testing

Loss limits on capital allocations

VerifyVerifySecure sustainable and stable earnings
through appropriate risk-taking

Ensure soundness through preventionof unexpected losses

VerifyVerifyVerifyResults monitoring

Manage risk signs(2) Increase Sophistication of Capital Markets Investment
Aim to maintain a sound portfolio and secure sustainable earnings by building a securities portfolio suited to environmental changes and pursue appropriate returns on risk based on management policy and capacity

Increase sophistication of capital market investment based on RAF

Basic Policy on Securities Investment
Maintain a sound portfolio and secure sustainable earnings
Pursue appropriate returns on risk

Increase sophistication of
investment methods• Pursue appropriate returns on risk

• Expand investment with a focus• Build a portfolio suited to environ-•based on RAF

mental changes••

on capital gain

Build investment system suitable
for risk-taking
Strengthen the investment
management system focused on
overall profit and loss
Diversify hedging instruments
to increase the sophistication of
investment techniques

THE YAMANASHI CHUO BANK 201915

Increase the sophistication of the risk
management system• Maintain a sound portfolio bystrengthening the risk management system• Build an effective management

system appropriate for risk-taking• Increase the sophistication of

the operation management
infrastructure to suit investment
content

Value+ 2022

Basic Priority 2 Strengthen CSR Based on the SDGs and ESG Principles(1) Strengthen CSR Initiatives through New Views (SDGs/ESG)Engage vigorously in CSR activities based on the SDGs and ESG principles,and contribute to the sustainable development of the regional community

Environment
Activities to tackle environmental problems

activities to reduce the Bank’s own environmental impact• Strengthen
Support and facilitate activities undertaken by the regional community, customers and others to reduce• environmental
impactSocialActivities for regional revitalization

education support to increase financial literacy of Yamanashi Prefecture residents• Strengthentake steps to promote arts and culture, sports and other activities to contribute to the development• ofProactively
the regional community• Promote corporate activities from the standpoint of contributing to society, including wellness initiatives

Governance
Activities for corporate governancesystems for ensuring transparency and objectivity of management by strengthening governance• Build• Expand information disclosure on governance from the perspectives of the SDGs and ESG

Sustainable development of the regional
community
Strengthen activities on
the SDGs and ESG

Increase earnings

Increase value forcustomers and the Bank

Basic Policy on CSR
Since its foundation, the Yamanashi Chuo Bank Group’s constant mission
has been “region-based operations and sound management.” Guided
by this mission, we will work to develop the regional economy throughbusiness activities in response to the needs of various stakeholders,
including regional society, customers, shareholders and employees, witha solid foundation of compliance. At the same time, we are strongly
aware of the social and environmental aspects of Our Mission, and willcontribute to the realization of a sustainable regional society.

Contribute to the realization of a sustainable regional society
Regional society

Customers

Shareholders

Employees

Fields of activity ▶

Financial aspect

Social aspect

Environmental aspect

Corporate governance

THE YAMANASHI CHUO BANK 201916

ComplianceValue+ 2022

Basic Priority 2 Strengthen CSR Based on the SDGs and ESG Principles

Yamanashi Chuo Bank Group’s SDGs Declaration
Guided by our Basic Policy on CSR, we have formulated the Yamanashi Chuo Bank Group’s SDGs Declaration and havefurther strengthened our CSR activities accordingly.

Yamanashi Chuo Bank Group’s SDGs Declaration
Based on Our Mission of “region-based operations and sound management,” we, as a regional financial institution, have supported the development of local companies and industries, vitalized communities and backed the creation of affluent lifestyles for people living in regional areas
while striving to realize a sustainable society to contribute to the achievement of the Sustainable Development Goals proposed by the United
Nations.
10 May 2019
President Mitsuyoshi Seki

Key measures◯ Strive to reduce environmental impact

To protect our lush and pristine natural environment, we will implement initiatives
to reduce our environmental impact through our business activities, along withsupporting customers who are engaged in environmental protection and environmentally friendly businesses. Through these initiatives, we will work to energize
regional environmental protection activities and solve environmental problems.
◯ Develop a sustainable regional economy

As a regional financial institution, we will support the development of regional
companies and industries by providing a wide range of financial services. At thesame time, as we strive to improve financial literacy to develop the next generation of leaders, we will work to solve a variety of issues.
◯ Appoint and utilize diverse human resources

By promoting diversity, we will show respect for human rights and individual
differences as we strive to enhance the work, family and daily lives of all people,
so that diverse human resources can reach their full potential.

(2) Contributions to Regional Economic Revitalization
For issues that directly face the region such as a declining population and new business creation, Yamanashi Chuo Bank will contribute to regional
economic revitalization with support through financial and non-financial services, and continue to serve as a bank that is indispensable to the region
Regional Economic Revitalization
Solving Regional Issues
Activities for Sustainable Regional Community Development

Support for Activities for Regional Industrial Revitalization

Activities to Promote Moving to and Living in Yamanashi Prefecture

Regional Corporate Support through Cooperation with Industrial, Government, and Academic Funds•••• Support for cultivating agricultural managers• Promote regional corporate support through industry-academia partnerships

Distribute information and encourage moving to Yamanashi Prefecture by utilizing branches outside the prefecture
Activities for coordinating with administrative policies
Support for readiness to receive customers within the prefecture

Strengthening Initiatives to Attract Companies

Support for Promoting Priority Measures of Local Public Entities and the Bank’s Key Measures• Acquire information on land (buying and renting)• Listen to the needs of stores outside the prefecture• Partnerships with Yamanashi Prefecture and its municipalities• Proposals and support that conform to the actual situation of local authorities• Support for administrative policies in anticipation of the opening of the Chuo Shinkansen maglev line
• Support for regional revitalization in conjunction with the opening of the Chubu-Odan Expressway

Support for Expanding Sales Routes and Matching for Regional Products

Support for Efficient and Effective Management of Administrative Policies••• Support for introducing public-private partnerships

Hold exhibitions and business meetings
Provide interaction opportunities for agriculture and food-related business operators, provide beneficial information

Activities to Utilize Regional Resources• Support development through utilization of funds• Strengthen distribution of tourism information• Strengthen support for readiness to receive inbound customers• Various activities at the Council for Revitalization of the Region Spanning the Borders of Kanagawa, Yamanashi and
Shizuoka Prefectures

THE YAMANASHI CHUO BANK 201917

Activities for Corporate Governance
Enhancing Corporate Governancemanagement in response to changes in the business environment.

Guided by its social responsibility as a banking institution and its

gize the organization, the Bank has appointed Executive Officers topublic service mission in that role, the Yamanashi Chuo Bank aims

serve as the highest-ranked staff in charge of important businessto secure the trust of various stakeholders, including customers,

execution duties of the Bank.

Additionally, in order to raise management efficiency and ener-

shareholders, staff members and the community it serves, by such

To provide a comprehensive range of financial functions, themeans as maintaining the Group’s sound management and assur-

Bank has four Group companies engaged in business activities

ing transparency of management, in conjunction with contributing

such as credit guarantees, leasing, credit cards and consulting

to the prosperity of the regional community and the development

services. These companies are managed in an integrated mannerof its economy.

as part of the Yamanashi Chuo Bank Group.

To this end, the Bank has built a stronger internal control system

Reasons for Adoption of the Bank’s Corporate
Governance Systemand organizational structure, along with working to enhance corporate governance, notably by maintaining high ethical standards

The Board of Directors supervises the status of business execu-

among all management and staff members, and ensuring thetion by each Director. In the process, Outside Directors, who are

active disclosure of corporate activities.

independent of the management team responsible for business

Overview of Corporate Governance
System and Reasons for Adopting This
Systemexecution, provide advice from an objective and broad viewpoint.

Overview of Corporate Governance System

Independent Auditors. For these reasons, the Bank has determined

The Bank has adopted a corporate governance system based onthat its governance system based on the “Company with Board

the “Company with Board of Auditors” model.

of Auditors” model is functioning effectively and has therefore

Moreover, the Outside Auditors monitor overall management
and provide effective advice. The Board of Corporate Auditors
strives to cooperate closely with the Auditing Division and theadopted such a governance system.

The Board of Directors determines management policies andother important matters, along with supervising the businessexecution of the Directors. The Bank takes steps to strengthen
the Board of Directors’ supervision of management. For example,
the Bank has appointed two Outside Directors to participate in

The structure of the internal control systemmeetings of the Board of Directors, both of whom are independent
General Meeting of Shareholdersof business execution.
Moreover, the Bank has set up a Nomination and Remuneration

Board of Directors

Advisory Committee as an advisory body to the Board of Directors.

Board of Corporate Auditors

This committee was formed to ensure further impartiality, transpar-

ChairmanStanding Corporate Auditorsency and objectivity in the decision-making process pertaining toCorporate Auditors

the appointment and dismissal of members of the management
team (managing directors and above) and the nomination andPresident

Non-Standing
Director

Deputy President
Senior Managing Director

remuneration of directors, as well as related matters.

Independent
Auditors

The Board of Corporate Auditors determines audit policies, audit

Office of Corporate
Auditors

Managing Directors
Board of Managing
Directors

plans, audit methods and related matters, along with auditing
the business execution of the Directors from an independent

Directors

standpoint from the Board of Directors.
The Bank also has a Board of Managing Directors, Compliance
Committee and Risk Management Committee. The Board ofAuditing Division

Managing Directors discusses and passes resolutions on importantmatters pertaining to the Bank’s overall business management andAdvise and report

Nomination andRemuneration Advisory
Committee

Compliance Committee
Risk Management
Committee

business execution in accordance with the basic management
Head Office Divisions

policies approved by the Board of Directors. The Compliance
Committee discusses and monitors the implementation of

All Branches

measures to develop and establish a compliance system. The Risk
Management Committee seeks to conduct effective and agile risk
THE YAMANASHI CHUO BANK 201918

Group Companies

Activities for Corporate GovernanceRisk Management Activities

and the effective use of capital.

Compliance Activities

The operating environment for the financial situation has been changing, and banks consequently face increasingly diverse and complex

With regard to compliance, we believe that our duty is not solely torisks.

abide by the law, but also to ensure the strict observance of a wide
range of social rules, including social norms and business ethics, toTo secure a steady earnings stream into the future, it is therefore
essential for the Bank to accurately monitor and measure themeet the demands and expectations of the broader community

various risks involved in the conduct of its banking operations, andas a corporate citizen. In other words, compliance entails adapting

then to continuously manage those risks.

adroitly to changes in society as we strive to ensure the protectionof customer rights and the enhancement of convenience.

The risks the Bank faces are broadly grouped into risk categories
such as credit risk, market risk, liquidity risk and operational risk,

The Bank views compliance as one of its top management

and managed accordingly. Based on integrated risk monitoring

priorities. Accordingly, we have made our Nine Principles ofand analysis, the Bank’s ALM Committee and Risk Management

Compliance (Business Ethics) known to management and employ-

Committee assess the possible impact of those risks on the Bank’s

ees as we carry out our daily duties.

operations and work out countermeasures.
The Bank allocates capital to ensure sound banking operations

Nine Principles of Compliance(Business Ethics)

1

Fulfill the public mission of banks

2

Provide high-quality financial services

3

Strict compliance with laws and regulations and other rules

4Society and communication

5

Respect for human rights

6

Workstyle reforms, enhancement of theworkplace environment for management and employees

7

Activities to tackle environmental
problems

8

Contribute to social inclusion anddevelopment

9

Take steps to mitigate threats such as severing
any ties with anti-social forces and countering
terrorist financing

THE YAMANASHI CHUO BANK 201919

Activities for Corporate Governance

Basic Policy on the Prevention of Money
Laundering and Terrorist Financing

Activities to Promote More Active Roles
for Women in the Workplace

The Group sees the prevention of money laundering and terrorist

The Bank has been creating an employment environment that

financing (hereinafter, “ML/TF”) as a top management priority.

makes it easy for both men and women to raise children. It has also

Accordingly, the Group has developed and established an effective

taken steps to develop a variety of work conditions for workers,

management framework, and is implementing measures to prevent

including those who are not raising children. The Bank has also

ML/TF as follows:

implemented measures to promote more active roles for women

1. Compliance with relevant laws, regulations and other rulesin the workplace. In recognition of these activities, the Bank has

The Group will comply with all applicable laws and regulations,

received the Kurumin and Eruboshi certifications.

policies and other rules concerning the prevention of ML/TF.

At present, the Bank has appointed one female Director, and

2. Development of systems

85 female employees are working successfully in managerial and

The Group will clearly define the roles and responsibilities ofsupervisory posts at its Head Office and branches.

managers and staff members involved in Anti-Money Laundering/Counter Financing of Terrorism (hereinafter, “AML/CFT”). Integrated
management of AML/CFT will be carried out under appropriate
cooperation among all the relevant departments.
3. Risk-based approach
In accordance with the risk-based approach, the Group will
identify and evaluate in a timely and accurately manner the ML/TF
risks it faces, and implement mitigation measures commensuratewith those risks.
4. Suspicious transaction reports
The Group will develop a framework for swiftly reporting to theregulatory agencies any suspicious transactions it detects in thecourse of its operations.
5. Management of correspondent banks
The Group will strive to gather information on correspondentbanks, appropriately evaluate such information, and implement
mitigation measures in line with the risk. In cases where the correspondent bank is a shell bank, or if the Group has permitted a shellbank to use an account, the Group will not conclude or maintain acorrespondent agreement with such a shell bank.
6. Education and training
The Group will continuously provide the necessary and appropriate training and other educational activities to all executives andemployees according to their roles, thereby enhancing their abilities and deepening understanding of measures to prevent ML/TF
across the entire organization. Concurrently, the Group as a wholewill foster a corporate culture that resolutely counters ML/TF.
7. Internal audit
The independent Auditing Division will conduct regular audits ofthe framework to prevent ML/TF. Based on the audit results, theGroup will strive to further enhance this framework.

THE YAMANASHI CHUO BANK 201920

Environment

Activities to Tackle Environmental Problems
Environmental Policy
Yamanashi Chuo Bank Environmental Policy
The Yamanashi Chuo Bank is a regional bank that operates principally in a region blessed with one of Japan’s most picturesque and bountiful natural environments.
As such, the Bank is strongly committed to protecting the global environment. The Bank believes that activities to tackle environmental problems are the foundationof its corporate social responsibilities (CSR). The Bank complies with environmental laws and regulations, along with accurately monitoring the impact of its businessactivities on the environment. Concurrently, the Bank works to actively and continuously implement environmental protection activities.
1. The Bank will strive to reduce environmental impact by promoting the conservation of resources and energy, with a view to harmonizing its businessactivities with the environment as a financial institution.
2. The Bank will strive to help improve the regional community environment through the supply of financial products, services, information and so forth.
3. Every executive and employee will increase their understanding of environmental problems, and actively implement environmental protection
activities in the regional community.

Strengthen Activities to Reduce the Bank’s Own
Environmental Impact

family members, who took part in the cleanup of areas around the• Preservation and rehabilitation projects in socioecological landscapes (satochi-satoyama areas)

mental protection and preservation activities for Mt. Fuji, which

Fifth Station of Mt. Fuji and Oshino Hakkai Springs.
Looking ahead, we will continue to actively conduct environwas registered as a World Heritage Site, and surrounding areas.

The Group has been promoting the preservation of sociohabitats where human activities are undertaken in harmony with

• Participation in the Yamanashi Clean Campaign and
Eco-Drive Movement

nature, since August 2011. To pass on these landscapes to future

The Group participates in the Yamanashi Clean Campaign andgenerations, the Bank has named a plot of abandoned farmland

Eco-Drive Movement, which are environmental beautificationin Chuo City, Yamanashi Prefecture as “Yamanashi Chuo Bank

programs led by Yamanashi Prefecture. The entire Bank is working

Fureai-no-Satoyama.” The Bank is working to rehabilitate the landas one to conduct environmental beautification and preservationand grow various vegetables on the site with the advice of local

activities. For example, we are conducting cleanup activities of

farmers and forestry cooperative members. In addition, the Bank

public facilities such as roads and parks around our branches, andis tending to an abandoned forest next to the site by conducting

implementing environmentally friendly driving practices. In thetree-planting activities. To date, the Bank has organized and held 39

2018 Yamanashi Clean Campaign, we conducted cleanup activities

activities with the participation of a total of 2,824 people compris-in 606 locations with the participation of 3,226 people. The Eco-ing executives, employees, and their family members.

Drive Movement involved the participation of 2,410 employees

ecological landscapes (satochi-satoyama areas), which are naturaland 520 Bank-owned vehicles.

• Installation of solar power generation systems
As part of its measures to reduce the amount of CO2 emissions,
the Bank has installed solar power generation systems at its Asumi
Branch, Ogasahara Branch, and Showa Branch.
Moreover, the Bank has equipped the parking lot of theSaruhashi Branch with lights that run on solar and wind power.

• Participation in cleanup activities on Mt. Fuji
Under the slogan of “World Heritage Site: Leaving a Beautiful• Deployment of fuel-cell vehicles

Mt. Fuji to Future Generations,” the Group has been working to

In order to help prevent global warming, we are actively deploying

protect and preserve the value of Mt. Fuji, along with promoting

hybrid vehicles and other fuel-efficient vehicles into our fleet

tourism and related priorities. In August 2018, the first term of theof business vehicles. We have also deployed two MIRAI fuel-cellcleanup campaign for Mt. Fuji, an event organized by the Mt. Fuji

vehicles (FCV). The MIRAI FCV has been lauded as the “ultimate

Beautification Foundation, was held. The Bank was represented ineco car” because it does not emit any carbon dioxide or exhaustthe event by 216 of its executives and employees, as well as theiremissions when it is driven.

THE YAMANASHI CHUO BANK 201921

SocialActivities to Revitalize the Regional Economy
Activities to Support the Management of Smalland Medium-Sized Enterprises

lineup of high-quality support services, ranging from free-of-charge

The Bank will continue working to improve services for customers

the healthcare and nursing care fields at the Head Office to support

in its regional communities, with the view to contributing to thefrom specialized organizations. This support addresses all manner ofdevelopment of a sustainable regional economy and society.

needs, from starting a business to business improvement, entering

support and information from a dedicated professional consultant in

new fields and business succession.

• Support for startup and establishment
The Bank has set up a Startup and Establishment Support Desk. As• Support for tourism-related businesses

a collaborative effort among the Bank, its Group companies and

The Tourism Support Desk conducts a range of activities. It holds

external organizations, we have established a comprehensive sup-inbound tourism seminars, assists business customers in col-port platform for customers in the startup and establishment phase.

laboration with Tourism Advisors and external organizations, andThe platform provides a wide range of support to such customers,

disseminates tourism-related information focused on tourism withinfrom support for business planning formulation to raising startup

Yamanashi Prefecture via social networking services.
Moreover, the Bank is carrying out the “Katakoto Eigo Project”

funds and achieving business growth after establishment.
In addition, we offer the Yamanashi Chuo Bank startup support(Beginner’s English Project) at all branches. This initiative seeks toloan “Fine Start,” with the aim of contributing to regional economic

facilitate the development of towns where residents can commu-

revitalization by supporting customers who are starting new busi-

nicate effectively with inbound tourists in English, by improving thenesses in Yamanashi Prefecture.

English language skills of the residents of Yamanashi Prefecture.
Specifically, the Bank conducts activities such as publishing “Eikaiwa de Omotenashi” (“Hospitality through English
Conversation”), a leaflet on practical English conversation, twice amonth. The Bank also participates in one of Yamanashi Prefecture’s
Mirai Projects to promote regional revitalization entitled “thePromotion of Universities as the Center of Communities Plus Project(COC+)” through partnerships with universities within the prefecture.
The Bank also helps its business customers to welcome inboundtourists by providing access to Business Advisors who are native
speakers of English.

• Support for agri-business
Since April 2011, the Bank has operated an Agri-Business School
to support business operators who are seeking to conduct agribusiness with business sensibility and an entrepreneurial spirit.
This course teaches management subjects such as finance, humanresource development, distribution, production management, andmarketing. It also incorporates extracurricular course activities suchas field work and on-site learning tours.

• Support for overseas business
The Bank has set up an Asia Desk in its Head Office, led by a
dedicated manager responsible for overseas business support. The
Asia Desk manager fulfills the roles of a coordinator, collaboratingwith overseas financial institutions (8 institutions) and organizations
supporting the overseas business development of business partners,
as well as the Hong Kong Representative Office and employees
assigned overseas (in China, Thailand, and Vietnam). Based on this• Support for healthcare and nursing care businesses

collaboration, the Asia Desk manager provides information accord-

We have established a support platform for the healthcare and nurs-

ing to the stage of each customer's overseas business development

ing care fields as a collaborative effort among the Bank, its Groupand various forms of support.

companies and external organizations. Besides financial support,

Specifically, the Bank conducts a range of activities. For customers

such as loans and leases, the platform provides a comprehensive

who are considering expanding their businesses overseas, the

THE YAMANASHI CHUO BANK 201922

SocialActivities to Revitalize the Regional Economy
Bank provides opportunities for them to tour overseas markets. For
customers who are considering starting business transactions withoverseas companies, the Bank proposes that they acquire credit
survey reports on the overseas companies. For customers who areseeking to expand their overseas sales channels, the Bank provides
information on various business meetings and makes buyer matching proposals using the internet.

Corporate growth assistance through collaboration with business advisors (April 2001 to March 2019)
Number of investment target and borrower
enterprises, investment amount198¥15.7 bn

Number of business matching deals

91 lines

The Bank’s business advisors are highly knowledgeable andexperienced. They have provided consulting services to 655
companies regarding the opening of marketing channels andthe evaluation of the potential of technology and business.

Yamanashi Chugin Management Support Coordination Services
and corporate customer support through business matching services
Number of companies that have received
support (problem-solving) from Yamanashi
Chugin Management Support Coordination
Services (January 2006 to March 2019)
Number of business matching deals successfully concluded via the Bank’s network
or Bank-sponsored business meetings (April
2005 to March 2019)

1,404

The Bank links with a network of external institutions tooffer corporate customers tailored proposals backed up by
specialist know-how.

2,819

Business matching has been achieved by using the Bank’s network to provide data on customer companies, as well as business fairs such as the Yamanashi Food Sector Business Matching
Fair, the Yamanashi Food Business Liaison Conference, etc.

Achievements in support for management improvement (April 2018 to March 2019)
Debtors (excluding normal borrowers) as of the start of the term: A
Of which, those receiving management improvement support: a

1,913
118

Of which, those that upgraded their debtor categories as of the term-end: b

15

Of which, those drawing up reconstruction plans: c

88

Percentage receiving management improvement support: (a/A)

6.2%

Percentage upgraded: (b/a)

12.7%

Percentage drawing up reconstruction plans: (c/a)

74.6%

THE YAMANASHI CHUO BANK 201923

SocialActivities for Regional Revitalization
In order to achieve sustainable regional community development and regional industrial revitalization, the Bank willconduct various activities through the supply of financial and non-financial services.
• Activities in collaboration with regional communities

have also installed special document stands

Aiming to strengthen mutual partnerships on regional economic

to hold promotional leaflets on municipali-development, the Bank has concluded partnership agreements with

ties in Yamanashi Prefecture.
Additionally, the Bank offers Municipality

10 cities in Yamanashi Prefecture. Under these agreements, the Bank isadvancing partnership initiatives such as promotional events for regional

Partnership Housing Loan products for 19

products at its branches in Tokyo and Kanagawa Prefecture, and support

municipalities. These loans are linked tofor holding relocation counseling meetings for people interested insubsidies established by municipalities tomoving to Yamanashi Prefecture, as well as support for developing an

encourage inbound migration, with the aim

environment to welcome inbound tourists visiting Japan.

of developing an environment to welcome
more people seeking to move to and live in

Moreover, as an initiative straddling prefectural borders, the Bank

Yamanashi Prefecture.

concluded the Partnership Agreement on Promoting Tourism in the
Fuji-Hakone-Izu Region with The Bank of Yokohama, Ltd. and The

Going forward, the Bank will continue to implement measures

Shizuoka Bank, Ltd. Under this agreement, the Bank has conductedin cooperation with the initiatives of municipalities, with the aim ofregional economic revitalization activities encompassing an expansive

encouraging more people to move to and live in Yamanashi Prefecture.

area. One such activity was the creation of a “Map without Prefectural
Boundaries,” which was designed to help visitors get around the entire• Collaboration with universities

region. The map was created by the Council for Revitalization of the

The Bank has concluded agreements on comprehensive partnerships

Region Spanning the Borders of Kanagawa, Yamanashi and Shizuoka

with each of the following universities: the University of Yamanashi,

Prefectures in accordance with the aforementioned partnership

Yamanashi Prefectural University, Yamanashi Gakuin University, andagreement.

Yamanashi Gakuin Junior College.

Looking ahead, the Bank will take active steps to facilitate regional

The Bank publishes “Direct News on Business Opportunities

economic revitalization in anticipation of the opening of the Chubu

Originating from the University of Yamanashi” and Yamanashi Gakuin

Odan Expressway through to Shizuoka and the start of operations of the

University’s “Business Navigation,” both of which are reports that

Shinkansen maglev train.

present the research activities of each university. In addition, the Bank
has dispatched an employee to serve as a Community Collaboration
Coordinator at the University of Yamanashi. Moreover, in November 2017,
the Bank concluded an agreement on partnership and cooperation with
the Platform of University Intellectual Property (PUiP). In these and otherways, the Bank is implementing measures that will pave the way forregional economic revitalization and promote regional development.

• Encouraging people to move to and live in Yamanashi
Prefecture
The Bank has concluded the “Partnership Agreement on Attracting
and Retaining a Resident Population” with Yamanashi Prefecture. To
encourage residents of the Tokyo metropolitan area to move to andlive in Yamanashi Prefecture, the Bank has set up “Move-to-Yamanashi
Desks” in its branches in Tokyo and Kanagawa Prefecture. Each BranchManager has been entrusted by Yamanashi Prefecture to serve as a

• University of Yamanashi Guest Social Collaboration
Coordinators“Move-to-Yamanashi Advisor.” In this role, the Branch Managers provide

The Bank is working to revitalize the regional economy by creating andinformation on Yamanashi Prefecture, along with fielding the inquiries offinding promising projects through industry-academia collaboration. To

people interested in relocating to Yamanashi Prefecture and forwarding

this end, the Bank takes steps such as matching the technology seeds

these inquiries to the Yamanashi Living Support Center.

held by universities with the needs of companies.

Moreover, the Bank is helping to spread the word about the

As of March 31, 2019, the University of Yamanashi had appointed 114

attractiveness of Yamanashi Prefecture. The Bank distributes promotional

Bank employees as “University of Yamanashi Guest Social Collaboration

videos on municipalities in Yamanashi Prefecture via a content distribu-

Coordinators.” In this role, these employees serve as liaisons between

tion system installed in branches in Tokyo and Kanagawa Prefecture. We

industry and academia.

THE YAMANASHI CHUO BANK 201924

SocialActivities to Contribute to the Regional Community
As a corporate citizen, the Bank will enhance its activities to contribute to the regional community in various fields suchas support for education and the promotion of culture, arts, sports, and welfare, and implement these activities on alasting, long-term basis. In the process, the Bank will contribute to the development of the regional community.

• Yamanashi Chuo Bank Financial Museum• Activities for customers with disabilities

The Yamanashi Chuo Bank Financial Museum presents many

The Bank has installed handset-equipped ATMs at its Head Officedifferent aspects of the histories of currency and finance in Japan.

and all branches so that customers with visual impairment and

The museum has permanent displays of approximately 2,000

elderly customers can use ATMs without any difficulties.

articles of currency, highlighted by its collection of Koshu-kin gold

In addition, the Bank has introduced devices that make it easiercoins, and Japan’s first passbook. It also holds planned exhibits andfor customers to hear sales staff at the Head Office and certain

other events as appropriate. The museum also hosts off-campus

branches, so that customers can communicate without any

learning programs for elementary school, junior high school andproblems. The devices work by converting the speaker’s voice into

other students, and dispatches instructors to schools for special

a form that is easier for listeners to hear. The Bank is also working

workshops. The museum is made available to members of theto develop branches that have barrier-free features in facilities

community as a lifelong learning facility.

and buildings. Examples include the installation of priority parking
spaces for people with disabilities and access ramps to branch• Activities to provide financial education

entrances. This is to ensure that all customers, including those withThe Bank conducts activities such as hosting workplace-experience

physical disabilities and elderly customers, are able to reliably andactivities, conducting special workshops, and offering financial

safely use our branches.

courses at universities in Yamanashi Prefecture. Moreover, theBank holds the Economics Koshien Yamanashi Tournament forsenior high school students (The event has so far been held eighttimes.). In December 2018, the Bank developed Quiz BUNDAS, asmartphone app designed to support financial education.

In addition, the Bank has been encouraging its personnel toobtain the Service Care Attendant certification. This certification is
granted by the Japan Consulting Institute to personnel that havedemonstrated their ability to provide universal services that areconsiderate and mindful of the needs of all customers—whatever
their circumstances may be. The Bank plans to assign personnel
who have obtained this certification to all branches.

• Activities to promote sports
The Bank has a women’s volleyball team that has delivered afirst-rate performance on the national stage since it was formed.
In order to popularize volleyball and improve volleyball skills
in Yamanashi Prefecture, the Bank holds the “Fureai Volleyball
Workshop” and the “Sawayaka Kids’ Volleyball Workshop.” The Bank
also holds the Yamanashi Chuo Bank Cup Volleyball Tournamentfor Mothers in Yamanashi Prefecture every year.

THE YAMANASHI CHUO BANK 201925

Financial Review(on a consolidated basis)

Overview of Financial Position

totaling ¥483.4 billion, which was partially offset by purchases of investment
securities of ¥356.9 billion.

The Bank’s financial position as of March 31, 2019 was as follows. Deposits
stood at ¥2,922.8 billion as of March 31, 2019, up ¥48.5 billion from a year
earlier due to increases in individual and corporate deposits. Total deposits,
including negotiable certificates of deposit (NCDs), rose ¥43.2 billion froma year ago to ¥2,984.9 billion as of the fiscal year-end. Loans and bills
discounted increased by ¥84.2 billion from a year earlier to ¥1,704.2 billion
as of the fiscal year-end. This increase was mainly due to increases in loans
to small-and medium-sized enterprises and loans to individuals. Securities
stood at ¥1,135.6 billion as of the fiscal year-end, down ¥119.7 billion from ayear ago. This decrease was mainly due to declines in Japanese government
bonds and other securities.

Cash flow from financing activities
Net cash used in financing activities was ¥1.6 billion (compared with a net
outflow of ¥1.7 billion in the previous year). Cash was used mainly for repurchases of treasury stock of ¥0.5 billion and dividends paid of ¥1.1 billion.
As a result, cash and cash equivalents at the end of the fiscal year came to¥516.9 billion (up ¥205.5 billion from the previous year).

Analysis and Discussion of Operating Results
The Bank’s financial position as of March 31, 2019 was as follows. Total deposits including negotiable certificates of deposit (NCDs) performed strongly,
increasing by ¥43.2 billion from a year earlier. Loans and bills discounted
increased by ¥84.2 billion from a year ago. Yields on loans decreased, but
the extent of the decline was smaller than in the previous year. Securities
decreased by ¥119.7 billion, mainly due to sales of Japanese government
bonds and other securities.
The Bank of Japan’s negative interest rate policy will keep the current
low-interest rate environment unchanged. Under these conditions, the Bank
will work to improve the yield on loans and increase the loan balance byconducting problem solving-oriented consulting sales and helping customers to improve their businesses.
The Bank will also strive to deepen and expand consulting fields. Throughthese efforts, the Bank will seek not only to increase interest on loans, butalso to increase non-interest revenue (revenues from fees and commissions).
Looking at investments in securities, the Bank faces a challenging investment environment. In response, the Bank will work to raise the sophisticationof its investments while conducting appropriate risk management, with theaim of boosting investment returns.
The Bank will redouble its efforts to reduce expenses through measures toenhance productivity.

Overview of Operating Results
In terms of operating results for the fiscal year ended March 31, 2019, interest
income (the balance of interest income and expenses) declined by ¥451
million year on year, mainly reflecting a decrease in interest and dividends
on securities due to the impact of the Bank of Japan’s negative interest
rate policy. Fees and commissions (the balance of fee and commission
income and expenses) increased by ¥18 million year on year, mainly due
to an increase in commission revenue related to deposit and lending
operations. Other operating income (the balance of other operating income
and expenses) increased by ¥4,660 million year on year, mainly reflecting
an increase in Japanese government bonds and other bond transactions.
Credit-related expenses increased by ¥1,031 million year on year. Equity
share and similar transactions declined by ¥6,408 million year on year. Losson dissolution of investment trusts decreased by ¥2,345 million. As a result,ordinary profit decreased by ¥112 million year on year to ¥7,458 million.
Extraordinary losses decreased by ¥377 million year on year, mainlyreflecting a decline in impairment losses. Total income taxes rose by ¥260 million year on year. As a result of the above, profit attributable to shareholdersof the parent was down by ¥12 million year on year to ¥4,908 million.

Cash Flows
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥82.7 billion(compared with a net inflow of ¥79.7 billion in the previous year). The main
contributing factors were a net increase in deposits of ¥43.2 billion and a netincrease in borrowed money of ¥130.2 billion, which were partially offset by a
net increase in loans and bills discounted of ¥84.2 billion.

Cash flows from investing activities
Net cash provided by investing activities totaled ¥124.5 billion (comparedwith a net outflow of ¥27.3 billion in the previous year). The main sourceof cash was proceeds from redemption and sales of investment securities

ROA

OHR

Capital adequacy ratio(Domestic standard)

(%)

(%)

0.8

20.0

80.0

0.6

15.0

75.0

0.4

10.0

70.0

0.2

5.0

65.0

0.0

0.0
March 31

(%)

2015

2016

2017

2018

2019

March 31

60.0

2015

2016

2017

2018

2019

March 31

ROA = Core net business profit / (Average balance of total assets – Average balance of customers’ liabilities for acceptances & guarantees)
Capital adequacy ratio = Domestic standard (on a consolidated basis) OHR = Operating expenses / Core gross business profit
Note: A ll except for the capital adequacy ratio are on a non-consolidated basis.
THE YAMANASHI CHUO BANK 2019

26

2015

2016

2017

2018

2019

【Consolidated Financial Statements】①【Consolidated Balance Sheets】
Millions of Yen

Thousands of U.S. Dollars

End of FY2018(March 31, 2019)

End of FY2017(March 31, 2018)

End of FY2018(March 31, 2019)

Assets:Cash and due from banks¥ 311,546¥ 517,074$ 4,658,748

Call loans and bills bought

6,670

4,529

40,808

Monetary claims bought

13,735

13,486

121,508

11––

Securities *1, *8, *13

1,255,368

1,135,617

10,231,712

Loans and bills discounted*2, *3, *4, *5, *6, *7, *10

1,619,976

1,704,259

Foreign exchanges *6

2,962

4,042

36,419Other assets *8, *9

73,77774,759673,572

Tangible fixed assets *11, *12

24,724

24,176

217,825

Buildings

9,064

8,542

76,966

Land

12,917

12,755

114,921

7

293

2,645

2,734

2,585

23,293

2,775

2,981

26,865

2,275

1,903

17,149Software in progress

168

747

6,732

Other intangible fixed assets

332

331

2,984

Net defined benefit asset

1,112

3,021

27,227

Deferred tax assets

1,619

1,651

14,880

Customers’ liabilities for acceptances and guarantees

4,285

5,862

52,816(12,063)(10,654)(95,993)¥3,306,502¥3,480,808$31,361,460

Trading account securities

Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software

Allowance for possible loan losses
Total assets

11

THE YAMANASHI CHUO BANK 201927

15,355,072

Millions of Yen

Thousands of U.S. Dollars

End of FY2018(March 31, 2019)

End of FY2017(March 31, 2018)

End of FY2018(March 31, 2019)

Liabilities:¥2,874,395¥2,922,898$26,334,796

Negotiable certificates of deposit

67,32862,096559,474

Payables under securities lending transactions *8

20,20813,344120,231

Borrowed money *8, *9

91,825222,065

2,000,771

Foreign exchanges

1,284

937

8,445

Other liabilities

19,195

17,166

154,663

Accrued bonuses to employees

–

1,256

11,324

Accrued bonuses to directors and corporate auditors

46

44

398

Net defined benefit liability

212

236

2,132

Reserve for directors’ and corporate auditors’
retirement benefits

12

11

102

Reserve for reimbursement of deposits

229

230

2,075

Reserve for contingent losses

141

128

1,159

Deferred tax liabilities

10,023

12,141

109,389

Acceptances and guarantees

4,285

5,862

52,816

3,089,191

3,258,419

29,357,775

Common stock

15,40015,400138,751

Capital surplus

8,287

8,287

74,668Retained earnings

162,550

164,099

1,478,511

Treasury stock(3,685)(2,006)(18,081)

Total shareholders’ equity

182,551

185,780

1,673,848

Unrealized gains on available-for-sale securities

35,08836,906

332,520

Remeasurements of defined benefit plans(2,900)(3,031)(27,315)

Total accumulated other comprehensive income

32,18833,874305,205

155

174

1,570

2,415

2,559

23,061

217,311

222,388

2,003,685¥3,306,502¥3,480,808$31,361,460

Deposits *8

Total liabilities

Net assets:

Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

12

THE YAMANASHI CHUO BANK 201928

②【Consolidated Statements of Income and Consolidated Statements of Comprehensive Income】【Consolidated Statements of Income】
Millions of Yen

Thousands of U.S. Dollars

FY2017(From April 1, 2017
to March 31, 2018)

FY2018(From April 1, 2018
to March 31, 2019)

Ordinary income:¥54,120¥52,353$471,697

Interest and dividends income

31,94630,587

275,590

Interest on loans and bills discounted

15,79315,851

142,819

Interest and dividends on securities

15,853

14,485130,509

Interest on call loans and bills bought

186

91

820

Interest on due from banks

35

73

660

Other

77

86

782

Fees and commissions

8,330

8,383

75,533

Other operating income

6,020

9,219

83,063

Other ordinary income

7,823

4,163

37,510

651

－

－

7,171

4,163

37,510Ordinary expenses:

46,54944,895404,498

Interest expenses

1,701

794

7,161

Deposits

427

381

3,434

Negotiable certificates of deposit

10

11

103

Call money and bills sold

－

0

1

1,209

350

3,161

Borrowed money

54

51

462

Other

(0)

(0)

(1)

Fees and commissions

2,349

2,384

21,481Other operating expenses

5,715

4,253

38,322

General and administrative expenses *2

29,00528,235

254,394

Other expenses

7,778

9,227

83,142

－

324

2,926

7,778

8,903

80,215

7,570

7,458

67,198

Reversal of allowance for possible loan losses
Other *1

Payables under securities lending transactions

Provision of allowance for possible loan losses
Other expenses *3
Ordinary profit

13

THE YAMANASHI CHUO BANK 2019

29

FY2018(From April 1, 2018
to March 31, 2019)

Millions of Yen

Thousands of U.S. Dollars

FY2017(From April 1, 2017
to March 31, 2018)

FY2018(From April 1, 2018
to March 31, 2019)

3

－

－

3

－

－

609

228

2,063

Losses on disposal of fixed assets

145

145

1,313

Impairment losses *4

464

83

750

Income before income taxes and non-controllinginterests

6,964

7,229

65,135

Income taxes – current

1,343

834

7,522

Income taxes – deferred

511

1,280

11,536

Total income taxes

1,854

2,115

19,058

5,109

5,114

46,077

Profit attributable to non-controlling interests

188

205

1,852

Profit attributable to shareholders of the parent¥4,920¥4,908$44,225

Extraordinary income:Gain on disposal of fixed assets
Extraordinary losses:

Profit14

THE YAMANASHI CHUO BANK 201930

FY2018(From April 1, 2018
to March 31, 2019)

【Consolidated Statements of Comprehensive Income】
Millions of Yen

Thousands of U.S. Dollars

FY2017(From April 1, 2017
to March 31, 2018)

FY2018(From April 1, 2018
to March 31, 2019)

Profit¥5,109¥5,114$46,077

Other comprehensive income *1:(2,974)

1,626

14,653

Unrealized gains (losses) on available-for-salesecurities(4,036)

1,757

15,838Remeasurements of defined benefit plans

1,062

(131)

(1,185)

2,135

6,740

60,729

1,912

6,594

59,418

223

145

1,312

Total comprehensive income
Total comprehensive income attributable toshareholders of the parent
Total comprehensive income attributable to noncontrolling interests

15

THE YAMANASHI CHUO BANK 2019

31

FY2018(From April 1, 2018
to March 31, 2019)

③【Consolidated Statements of Changes in Net Assets】

㻌 㻌㻌 㻌㻌 㻌㻌 㻌

㻌㻌

Millions of Yen
Shareholders' equity

FY2017(From April 1, 2017 to March 31, 2018) Common stock
Balance at beginning of current year

Retainedearnings

Capital surplus¥15,400¥8,287

Treasury stock

Total shareholders’ 㻌equity¥(3,259)¥179,412 㻌¥158,984

㻌Changes during year:㻌 Cash dividends㻌Profit attributable to shareholders of
the parent(1,344)(1,344) 㻌

4,920

4,920 㻌㻌 㻌 Purchases of treasury stock㻌 Cancellation of treasury shares㻌㻌 㻌 Disposals of treasury stock(11)

Transfer from retained earnings to㻌 㻌 capital surplus

11

(11)

Net changes in items other than

Total changes during year
Balance at end of current year

FY2017(From April 1, 2017 to March 31, 2018)
Balance at beginning of current year

57㻌㻌

68

㻌 㻌 shareholders㻓㻌equity㻌㻌 㻌㻌㻌 㻌㻌 㻌㻌 㻌

(494) 㻌

(494)

㻌

㻌

㻌

㻌

－㻌

(0)㻌

3,565

(426)

3,139 㻌¥15,400¥8,287¥162,550¥(3,685)¥182,551 㻌

㻌

㻌

㻌

Millions㻌of Yen㻌㻌

Accumulated other comprehensive income
Unrealized
Total
gains (losses)
accumulatedotheron available- Remeasurements
for- saleof defined benefit comprehensive Subscription
securities
plans
incomerights to shares¥39,159¥(3,962)¥35,197¥173

Non-controllinginterests

Total net
assets¥2,194¥216,977

Changes during year:㻌 Cash dividends㻌(1,344)

Profit attributable to shareholders of
the parent

4,920

㻌 㻌 Purchases of treasury stock(494)

㻌 Cancellation of treasury shares㻌 㻌 Disposals of treasury stock

57

Transfer from retained earnings to㻌 㻌 capital surplus
Net changes in items other than㻌 㻌 shareholders㻓㻌equity(4,071)

1,062(3,008)(18)

221(2,806)

Total changes during year

(4,071)

1,062(3,008)

(18)

221

333

Balance at end of current year

¥35,088¥(2,900)¥32,188¥155¥2,415¥217,311

㻌

16

THE YAMANASHI CHUO BANK 201932㻌 㻌㻌 㻌㻌 㻌㻌 㻌

㻌㻌

Millions of Yen
Shareholders㻓㻌equity

FY2018(From April 1, 2018 to March 31, 2019) Common stock

Capital surplus¥15,400

Balance at beginning of current year

Retainedearnings¥8,287

Total
shareholders’equityTreasury stock¥162,550

㻌

¥182,551 㻌

¥(3,685)

㻌

Changes during year:㻌Cash dividends(1,168)(1,168) 㻌㻌Profit attributable to shareholders of
the parent

4,908

4,908 㻌(525)(525) 㻌(2,188)

2,188

㻌

(0)

15

14㻌㻌

㻌 㻌 Purchases of treasury stock㻌Cancellation of treasury shares㻌 㻌 Disposals of treasury stock
Transfer from retained earnings to㻌 㻌 capital surplus

2,189

㻌

(2,189)Net changes in items other than㻌 㻌 shareholders㻓㻌equity

Total changes during year
Balance at end of current year㻌㻌 㻌㻌㻌 㻌㻌 㻌㻌 㻌

－

－

1,549

1,678

3,228 㻌¥15,400¥8,287¥164,099¥(2,006)¥185,780 㻌

㻌

㻌

㻌

Millions㻌of Yen㻌㻌

Accumulated other comprehensive income

Unrealized
Total
gains (losses)
accumulated
on available- Remeasurementsotherfor- sale
FY2018of defined benefit comprehensive Subscription(From April 1, 2018 to March 31, 2019) securities
plans
incomerights to shares
Balance at beginning of current year㻌㻌

¥35,088¥(2,900)¥32,188¥155

Non-controllinginterests

Total net
assets¥2,415¥217,311

Changes during year:㻌Cash dividends(1,168)㻌

Profit attributable to shareholders of
the parent

4,908

㻌 㻌 Purchases of treasury stock
㻌

(525)

Cancellation of treasury shares㻌 㻌 Disposals of treasury stock

14

Transfer from retained earnings to㻌 㻌 capital surplus

Net changes in items other than㻌㻌 㻌 shareholders㻓㻌equity

1,817

(131)

1,686

19

143

1,849

Total changes during year

1,817

(131)

1,686

19

143

5,077

¥36,906¥(3,031)¥33,874¥174¥2,559¥222,388

Balance at end of current year

17

THE YAMANASHI CHUO BANK 201933㻌 㻌㻌 㻌㻌 㻌㻌 㻌

㻌㻌Thousands of U.S. Dollars
Shareholders㻓㻌equity

FY2018(From April 1, 2018 to March 31, 2019) Common stock

Capital surplus$138,751

Balance at beginning of current year

Retainedearnings$74,668$1,464,548

Total
shareholders’equityTreasury stock$1,644,759 㻌

$(33,208)㻌

Changes during year:㻌 Cash dividends
Profit attributable to shareholders of㻌 㻌 the parent(10,532)(10,532) 㻌

44,22544,225 㻌㻌 㻌 Purchases of treasury stock㻌 Cancellation of treasury shares㻌 㻌 Disposals of treasury stock
Transfer from retained earnings to㻌 㻌 capital surplus(4,737)(4,737) 㻌(19,721)

19,721

㻌

(9)

143

134 㻌

19,730(19,730)

Net changes in items other than㻌 㻌 shareholders㻓㻌equity

Total changes during year
Balance at end of current year㻌㻌 㻌㻌㻌 㻌㻌 㻌㻌 㻌

㻌

㻌

㻌

㻌

－㻌

－㻌

13,963

15,12729,089 㻌$138,751$74,668$1,478,511$(18,081)$1,673,848 㻌

㻌

㻌

㻌

Thousands of㻌U.S. Dollars㻌㻌

Accumulated other comprehensive income

Unrealized
Total
gains (losses)
accumulated
on available- Remeasurementsotherfor- sale
FY2018of defined benefit comprehensive Subscription(From April 1, 2018 to March 31, 2019) securities
plans
incomerights to shares
Balance at beginning of current year㻌$316,142$(26,129)$290,013$1,397

Non-controllinginterests

Total net
assets$21,765$1,957,934

Changes during year:㻌 Cash dividends(10,532)

Profit attributable to shareholders of㻌 㻌 the parent

44,225

㻌 㻌 Purchases of treasury stock(4,737)

㻌 Cancellation of treasury shares㻌 㻌 Disposals of treasury stock

134

Transfer from retained earnings to㻌 㻌 capital surplus

Net changes in items other than㻌㻌 㻌 shareholders㻓㻌equity

16,378(1,185)

15,193

172

1,296

16,661

Total changes during year

16,378(1,185)

15,193

172

1,296

45,751$332,520$(27,315)$305,205$1,570$23,061$2,003,685

Balance at end of current year

18
THE YAMANASHI CHUO BANK 201934

④【Consolidated Statements of Cash Flows】
Millions of Yen

Thousands of U.S. Dollars

FY2017(From April 1, 2017
to March 31, 2018)

FY2018(From April 1, 2018
to March 31, 2019)¥ 6,964¥ 7,229$ 65,135

2,308

2,262

20,383

464

83

750

(3,100)(1,409)(12,700)

Increase (decrease) in accrued bonuses to
employees

－㻌

1,256

11,324

Increase (decrease) in accrued bonuses todirectors and corporate auditors

(0)

(2)

(24)

Decrease (increase) in net defined benefit asset(1,112)(1,909)(17,203)

Increase (decrease) in net defined benefit liability(2,918)23

213

Increase (decrease) in reserve for directors’ andcorporate auditors’ retirement benefits

(1)

(1)

(12)

Increase (decrease) in reserve forreimbursement of deposits

19

0

4

Increase (decrease) in reserve for contingent
losses

(15)

(12)

(116)

Interest income recognized on consolidated
statements of income(31,946)(30,587)(275,590)

Interest expenses recognized on consolidated
statements of income

1,701

794

7,161

Losses (gains) on investment securities(7,192)(5,011)(45,150)

Foreign exchange losses (gains) – net

10,890(1,765)(15,903)

141

145

1,313

Net increase (decrease) in loans and bills
discounted(78,325)(84,282)(759,375)

Net increase (decrease) in deposits

73,966

48,503437,009

Net increase (decrease) in negotiable certificatesof deposit

5,467(5,232)(47,140)

Net increase (decrease) in borrowed money

86,338130,240

1,173,442

Net decrease (increase) in due from banks(excluding due from Bank of Japan)

26

43

388

Net decrease (increase) in call loans

183,708

2,390

21,540Net increase (decrease) in payables under
securities lending transactions(132,034)(6,864)(61,847)

Net decrease (increase) in foreign exchanges(assets)(1,333)(1,079)(9,724).

FY2018(From April 1, 2018
to March 31, 2019)

Operating activities:
Income before income taxes and non-controllinginterests
Adjustment for:
Depreciation and amortization
Impairment losses
Increase (decrease) in allowance for possible
loan losses

Losses (gains) on disposal of premises andequipment

19

THE YAMANASHI CHUO BANK 201935

Millions of Yen

Thousands of U.S. Dollars

FY2017(From April 1, 2017
to March 31, 2018)

FY2018(From April 1, 2018
to March 31, 2019)

FY2018(From April 1, 2018
to March 31, 2019)

Net decrease (increase) in foreign exchanges(liabilities)

1,004

(347)

(3,131)

Net increase (decrease) in central clearing
counterparty margin requirements(58,600)(1,400)(12,614)

Interest income (cash basis)

34,70233,267299,730

Interest expenses (cash basis)(2,085)(810)(7,300)

Other – net(7,121)(1,783)(16,070)

Total adjustments

81,917

83,741

754,492

Income taxes paid

(2,192)(990)(8,922)

Net cash provided by operating activities

79,72582,750745,570

Purchases of investment securities(510,886)(356,902)(3,215,629)

Proceeds from sales of investment securities

371,932

355,526

3,203,226

Proceeds from redemption of investment securities

113,585

127,901

1,152,374

Purchases of premises and equipment(1,353)(972)(8,758)

63

100

905

(711)

(1,153)(10,389)2

1

17(27,367)

124,502

1,121,746(1,344)(1,168)(10,532)

(1)

(1)

(16)

(494)

(525)

(4,737)

57

14

134

(1,783)(1,681)(15,151)

(1)

(0)

(2)

Net increase (decrease) in cash and cash equivalents

50,573

205,571

1,852,162

Cash and cash equivalents, beginning of year

260,830

311,4032,805,688

Cash and cash equivalents, end of year *¥311,403¥516,974$4,657,850

Investing activities:

Proceeds from sales of premises and equipment
Purchases of intangible fixed assets
Proceeds from sales of intangible fixed assets
Net cash provided by (used in) investing activities
Financing activities:
Dividends paid
Payment of dividends to non-controlling interests
Repurchases of treasury stock
Proceeds from sales of treasury stock
Net cash used in financing activities
Foreign currency transaction adjustments on cash andcash equivalents

1

20

THE YAMANASHI CHUO BANK 201936

【Notes to Consolidated Financial Statements】(Important Items Used as Basis for Preparing Consolidated Financial Statements)
1. Items relating to scope of consolidation(1) Consolidated subsidiaries 4 companies
The names of consolidated subsidiaries are Yamanashi Chuo Guarantee Co., Ltd., Yamanashi Chugin Lease Co., Ltd.,
Yamanashi Chugin DC Card Co., Ltd. and Yamanashi Chugin Management Consulting Co., Ltd.
(2) Number of non-consolidated subsidiaries 3 companies
Yamanashi New Business Support Investment Limited Partnership
Yamanashi Sixth Industrialization Support Investment Limited Partnership
Yamanashi Chugin Regional Revitalization Investment Limited Business Partnership
Non-consolidated subsidiaries are excluded from the scope of consolidation since their assets, ordinary income, and ourownership percentage of their net income and retained earnings do not have a material impact on our results of operations
and financial condition.
2. Items relating to application of equity method(1) Non-consolidated subsidiaries accounted for by the equity method
Not applicable(2) Affiliates accounted for by the equity method
Not applicable(3) Number of non-consolidated subsidiaries not accounted for by the equity method 3 companies
Yamanashi New Business Support Investment Limited Partnership
Yamanashi Sixth Industrialization Support Investment Limited Partnership
Yamanashi Chugin Regional Revitalization Investment Limited Business Partnership
Non-consolidated subsidiaries not accounted for by the equity method are excluded from the scope of the equity method
since our ownership percentage of their net income and retained earnings does not have a material impact on ourconsolidated financial statements.
(4) Affiliates not accounted for by the equity method
Not applicable
3. Items relating to business years of consolidated subsidiaries
All of the consolidated subsidiaries have their settlement day on March 31.
4. Items relating to accounting standards(1) Valuation standards and methods for trading account securities
Trading account securities, which are held for the purpose of earning capital gains, are reported at fair value and the related
unrealized gains and losses are included in earnings.
(2) Valuation standards and methods for securities
Held-to-maturity debt securities, which management has the positive intent and ability to hold to maturity are reported atamortized cost determined based on the moving-average method (straight-line method), and available-for-sale securities,
which are not classified as either of the aforementioned securities, are reported at fair value at the balance sheet date, in
principle. (The cost of securities sold is determined based on the moving-average method.) However, available-for-salesecurities whose fair values are extremely difficult to be determined are stated at cost determined by the moving-averagemethod. All of the unrealized gains and losses, net of applicable taxes, on available-for-sale securities are reported in a
separate component of net assets.

21

THE YAMANASHI CHUO BANK 201937

(3) Valuation standards and methods for derivative transactions
Derivative transactions are measured at fair value.
(4) Methods of depreciation of fixed assets① Tangible fixed assets (excluding lease assets)
Depreciation of tangible fixed assets is calculated principally using the declining-balance method. (However, the straightline method is adopted for buildings (excluding facilities attached to buildings) that were acquired on or after April 1, 1998,
and for facilities attached to buildings and structures that were acquired on or after April 1, 2016.)
Useful lives of tangible fixed assets are primarily as follows:
Buildings

3 to 50 years

Other

2 to 20 years

The depreciation period of lease investment assets held by consolidated subsidiaries and booked as tangible fixed
assets is the lease period, and those leases are depreciated using the straight-line method, with the residual value being
the estimated disposal price at the conclusion of the lease.
② Intangible fixed assets (excluding lease assets)
Amortization of intangible fixed assets is calculated principally using the straight-line method.
The amortization period of lease investment assets held by consolidated subsidiaries and booked as intangible fixed
assets is the lease period, and those leases are amortized using the straight-line method, with the residual value being
the estimated disposal price at the conclusion of the lease.
Software for internal use by the Bank and its subsidiaries is calculated over the useful life of the software (principally
five years).
③ Lease assets
Lease assets employed in leasing transactions that do not transfer ownership of the lease assets to the lessee – bothpremises and equipment and intangible fixed assets – are depreciated by the straight-line method over the lease period.
Residual value of those lease assets is zero unless any guaranteed amount is prescribed in the lease agreement.
(5) Allowance for possible loan losses
The allowance for possible loan losses is recorded in accordance with internally established standards for charge-offs andprovisions, as follows:
The allowance for claims on debtors who are legally bankrupt based on bankruptcy, special liquidation or otherproceedings (“Bankrupt borrowers”) or effectively bankrupt (“Effectively bankrupt borrowers”) is provided based on theoutstanding balance of the claims after deduction of the amounts expected to be collected through the disposal of collateraland the execution of guarantees.
The allowance for claims on debtors who are not currently legally bankrupt but are highly likely to become bankrupt(“Potentially bankrupt borrowers”) is provided in the amount deemed to be necessary based on a comprehensive
assessment of the overall repayment ability of the debtor. The amount necessary shall be within the outstanding balanceof the claims after deduction of the amounts expected to be collected through the disposal of collateral and the executionof guarantees.
The allowance for claims on debtors who have restructured loans and loans related to their affiliates, for which cash
flows related to the recovery of loan principal or receipt of interest can be reasonably estimated, is provided based on the
difference between the present value of expected future cash flows discounted at the contracted interest rate and thecarrying value of the claim (cash flow estimate method).
The allowance for claims other than those referred to above (claims on normal borrowers and claims on borrowers
requiring caution, excluding claims for which the cash flow estimate method is applied) is provided primarily based on theactual past loss ratio, which is calculated based on actual defaults during a certain period in the past.
All claims undergo a self-assessment of asset quality by the operational departments based on standards for selfassessment of asset quality. The results of these self-assessments are audited by an asset audit department independent
from the operational departments.

22

THE YAMANASHI CHUO BANK 201938

The policy for the allowance for possible loan losses of consolidated subsidiaries is similar to the Bank’s.
(6) Accrued bonuses to employees
Accrued bonuses to employees are provided to cover the payment of bonuses to employees, in the amount of the estimatedbonuses payable to employees attributable to each fiscal year.
(7) Accrued bonuses to directors and corporate auditors
Accrued bonuses to directors and corporate auditors are provided in the amount of the estimated bonuses which are
attributable to each fiscal year.
(8) Reserve for directors’ and corporate auditors’ retirement benefits
A reserve for directors’ and corporate auditors’ retirement benefits is provided at the amount which would be required if all
directors and corporate auditors retired at the balance sheet date.
(9) Reserve for reimbursement of deposits
Provision is made for possible losses on future claims of withdrawal of deposits which were derecognized as liabilities undercertain conditions in an amount deemed necessary based on historical reimbursement experience.
(10) Reserve for contingent losses
Reserve for contingent losses, which is provided for possible losses from contingent events, is calculated by estimation of
the impact of those contingent events.
(11) Accounting procedures for retirement benefits
In calculating retirement benefit obligations, the Bank used the benefit formula as the method of attributing the estimatedretirement benefits to periods of service to the end of the consolidated fiscal year under review.
㻌 In addition, the method of recording expenses for past service costs and actuarial gains and losses are as follows.
Past service costs: Recognized in profit and loss using the straight-line method over a fixed period (10 years) within the
average remaining service period of employees at the time they occur.
Actuarial gains and losses: Recognized the amount equally divided by using the straight-line method over a fixed period(10 years) based on the average remaining service period in each consolidated fiscal year inwhich they occur and recorded in profit and loss in the following year for each occurrence.
(12) Foreign currency items
Foreign currency assets and liabilities are translated into yen at the exchange rates prevailing at the balance sheet date.
(13) Lease transactions(Lessor)
Revenues and cost of revenues of finance lease transactions are recognized when lease payments are made.
(14) Cash and cash equivalents
For the purpose of reporting cash flows, cash and cash equivalents are defined as cash and due from the Bank of Japan.
(15) Consumption taxes
The accounting treatment of national consumption tax and local consumption tax is based on the tax exclusion method.

23

THE YAMANASHI CHUO BANK 201939

(Additional information)
Considering that it has become difficult for the Bank to determine the amount of bonuses payable to employees at the time of the
preparation of the consolidated financial statements, the Bank has recorded the estimated bonuses payable to employees as“accrued bonuses to employees” from the fiscal year ended March 31, 2019. Bonuses to employees were previously recorded
under “Other liabilities” as of March 31, 2018. The amount of bonuses to employees included in “Other liabilities” as of March 31,2018 was ¥1,322 million.

(Relating to Consolidated Balance Sheets)*1 Shares held or investments in non-consolidated subsidiaries and affiliates
As of March 31, 2019

(Millions of yen)

Investments¥559*2 The amounts of loans to customers in bankruptcy and past due loans included in loans and bills discounted were as follows:
As of March 31, 2019

(Millions of yen)

Loans to customers in bankruptcy¥ 1,755

Past due loans

20,124Loans to customers in bankruptcy represent nonaccrual loans to debtors who are legally bankrupt, as defined in Article 96,
Paragraph 1, Subparagraphs 3 and 4 of the Enforcement Ordinance for the Corporation Tax Law. Past due loans are defined
as nonaccrual loans except for loans to customers in bankruptcy and loans of which the interest payments are deferred in order
to assist in the financial recovery of a debtor in financial difficulties.
*3 The amount of accruing loans contractually past due three months or more included in loans and bills discounted was asfollows:
As of March 31, 2019

(Millions of yen)

Past due loans of three months or more¥－

Accruing loans contractually past due three months or more are loans on which the principal or interest is three months ormore past due.
*4 The amount of restructured loans for which the Bank has relaxed lending conditions included in loans and bills discounted was
as follows:
As of March 31, 2019

(Millions of yen)

Restructured loans for which the Bank hasrelaxed lending conditions¥3,567

Restructured loans are loans for which the Bank has relaxed lending conditions, such as: reduction of the original interest
rate, deferral of interest payment, extension of maturity date, or reduction of the amount of the debt or accrued interest.
*5 The total amount of loans to customers in bankruptcy, past due loans, accruing loans contractually past due three months ormore and restructured loans for which the Bank has relaxed lending conditions was as follows:
As of March 31, 2019
Total amount(Millions of yen)
¥25,447

The loan amounts identified in the preceding items *2 to *5 are before deducting any allowance for possible loan losses.
*6 Bills discounted are accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24,
February 13, 2002, “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in
Banking Industry.” The Bank has the right to sell or pledge commercial bills discounted and foreign exchanges bought without
restrictions. The face amount was as follows:
As of March 31, 2019

(Millions of yen)
¥4,952

24

THE YAMANASHI CHUO BANK 201940

*7 The amount of loan participation recorded in the consolidated balance sheets and included in participated principals that were
accounted for as loans to original debtors in accordance with JICPA Accounting System Committee Report No. 3, November
28, 2014, “Accounting Treatment and Representation of Loan Participation” was as follows:
As of March 31, 2019

(Millions of yen)¥－

*8 Assets pledged as collateral were as follows:
As of March 31, 2019

(Millions of yen)

Assets pledged as collateral
Investment securities¥284,323

Liabilities related to pledged assets
Deposits

43,624

Payables under securities lendingtransactions

13,344

Borrowed money

221,510

In addition to the aforementioned, the following items were pledged as collateral for the settlement of foreign currency
exchange and other transactions:
As of March 31, 2019

(Millions of yen)

Investment securities¥－

Other assets include central clearing counterparty margin requirements, cash collateral paid for financial instruments
and guarantee deposits, the amounts of which are as follows.
As of March 31, 2019

(Millions of yen)Central clearing counterparty margin
requirements¥60,000

Cash collateral paid for financial instruments

270

Guarantee deposits

286*9 Lease contract assets (the total sum of lease investment assets included in “Other assets” and interest receivables on lease
investment assets) for the remaining lease periods, which were pledged as collateral for a portion of borrowed money, wereas follows:
As of March 31, 2019

(Millions of yen)

Lease contract assets¥791

Corresponding borrowed money554*10 Commitment line contracts on overdrafts and loans are agreements to lend to customers when they apply for borrowing, up
to a prescribed amount, as long as there is no violation of any condition established in the contract. The amounts of unused
commitments as of March 31, 2019 were as follows:
As of March 31, 2019
Total amount of unused commitments as ofthe end of the period
Amount of unused commitments whose
original contract terms were within one year
or unconditionally cancelable at any time

(Millions of yen)
¥395,064
374,746

Since many of these commitments are expected to expire without being drawn upon, the total amount of unused
commitments does not necessarily represent actual future cash flow requirements. Many of these commitments have clausesthat allow the Bank to withdraw the commitment line offer or reduce the contract amounts in situations where economic
conditions are changed, the Bank needs to secure claims, or other conditions are triggered. In addition, the Bank requires
the customers to pledge collateral such as premises and securities and takes necessary measures such as seizing thecustomers’ financial positions, revising contracts when the need arises and securing claims after conclusion of the contracts.

25

THE YAMANASHI CHUO BANK 201941

*11 Accumulated depreciation of tangible fixed assets
As of March 31, 2019

(Millions of yen)

Total amount of accumulated depreciation¥33,887*12 Deferred gains on tangible fixed assets deductible for tax purposes:
As of March 31, 2019

(Millions of yen)

Deferred gains¥1,037(Reduction entry amount for the current
consolidated fiscal year)(－ )*13 The amount of guarantee liabilities for private placement bonds in “Securities” (provided in accordance with the Financial
Instruments and Exchange Act, Article 2, Paragraph 3) was as follows:
As of March 31, 2019

(Millions of yen)
¥4,949(Relating to Consolidated Statements of Income)*1 “Other ordinary income” includes the following item:
From April 1, 2018 to March 31, 2019

(Millions of yen)

Gain on sales of stock¥3,439*2 “General and administrative expenses” include the following:
From April 1, 2018 to March 31, 2019

(Millions of yen)

Salary allowance¥11,994*3 "Other ordinary expenses" include the following:
From April 1, 2018 to March 31, 2019

(Millions of yen)

Loss on cancellation of investment trusts¥5,210Loss on sales of equity securities

3,348*4 In the case of the following asset groups, book values were written down to the recoverable levels due to falling land prices
and lower net cash from operating activities, and differences have been recorded as impairment losses.
From April 1, 2018 to March 31, 2019

(Millions of yen)

Location

Use

Category

Yamanashi Prefecture

Operating assets

Land and buildings

Idle assets

Land

0

Operating assets

Other tangible fixed
assets

5

－

－

¥83

Outside Yamanashi
Prefecture
Total

Total impairment loss
¥77

In this method of asset grouping, operating assets as a rule are treated as business premises units (however businesspremises groups that handle combined businesses are treated as Group units), and idle assets are treated as individual asset
units. The Head Office, computing centers, company residences and dormitories, etc. are regarded as shared assets.
Recoverable amounts are whichever is the higher of net selling prices and value in use. In the case of net selling prices,
the calculation involves deduction of expected disposal expenses from the sum reasonably calculated by real estate asset
valuation, etc. In the case of value in use, the calculation involves discounting future cash flows by a discount rate.
All of the recoverable amounts for the fiscal year ended March 31, 2018 represent net selling prices.
The calculation of recoverable amounts for the fiscal year ended March 31, 2019 employs a 2.0% discount rate in the caseof value in use.

26

THE YAMANASHI CHUO BANK 201942

(Relating to Consolidated Statements of Comprehensive Income)*1 Reclassification adjustment and tax effect related to comprehensive income
From April 1, 2018 to March 31, 2019

(Millions of yen)

Valuation difference on available-for-salesecurities
Difference arising during the fiscal year

¥5,836

Reclassification adjustment to profit and loss

(3,216)

Amount before income tax effect2,620

Income tax effect(862)

Valuation difference on available-for-salesecurities

1,757

Remeasurements of defined benefit plans
Losses arising during the fiscal year

(931)

Reclassification adjustment to profit and loss

741

Amount before income tax effect(189)

Income tax effect57

Remeasurements of defined benefit plans(131)

Total other comprehensive income¥1,626(Relating to Consolidated Statements of Changes in Net Assets)
From April 1, 2018 to March 31, 2019
1. Items relating to kind and total number of shares outstanding and treasury stock(Thousands of shares)
Number of shares at
Increase in number of Decrease in number of Number of shares at
Remarks
the beginning ofshares during FY2018 shares during FY2018 the end of FY2018
FY2018
Shares outstanding
Common stock

174,915－140,932

33,983Note 1, 2

7,936

385

7,359

962

Note 1, 3, 4

Treasury stock
Common stock

Notes: 1. The Bank consolidated its shares at a ratio of five shares to one share on the effective date of October 1, 2018 .
2. The breakdown of the decrease in the number of shares outstanding during the fiscal year under review is as follows:㻌 㻌 (During and after the stock consolidation)
Decrease by stock consolidation

139,932 thousand shares

Decrease by cancellation of treasury shares

1,000 thousand shares

3. The breakdown of the increase in the number of treasury shares during the fiscal year under review is as follows:㻌 㻌 (Before the stock consolidation)
Increase by demand for purchase of shares less than
one unit㻌 㻌 (During and after the stock consolidation)
Increase by the purchase of fractional shares less than
one share upon the stock consolidation
Increase by demand for purchase of shares less than
one unit
Increase by acquisition of treasury stock upon resolutionof the Board of Directors

4 thousand shares

0 thousand shares
0 thousand shares
380 thousand shares

27

THE YAMANASHI CHUO BANK 201943

4. The breakdown of the decrease in treasury shares during the fiscal year under review is as follows:㻌 㻌 (Before the stock consolidation)
Decrease by exercise of stock option rights

33 thousand shares㻌 㻌 (During and after the stock consolidation)
Decrease by stock consolidation

6,325 thousand shares

Decrease by cancellation of treasury stock

1,000 thousand shares

Decrease by demand for purchase of shares less than
one unit

0 thousand shares

2. Items relating to share subscription rights and own share options
Breakdown of
share
subscription
rightsClassification

The Bank

Stock options as
share
subscription
rightsClass of shares
to be issued ortransferred upon
the exercise ofshare
subscription
rightsNumber of shares to be issued or transferred upon theexercise of share subscription rights (shares)
Beginning of
FY2018FY2018
Increase

Total

Decrease

End of FY2018

Balance as ofthe end of
FY2018(Millions of
yen)

－

¥174

－

¥174

3. Items relating to dividends(1) Dividend paid during FY2018(Resolution)
Annual General
Meeting of
Shareholders on
June 26, 2018
Board of Directors
Meeting on
November 12, 2018

Total dividend

Dividends per share(Millions of yen)

(Yen)

Common stock¥584

Common stock

584

Type of stock

Reference date

Effective date

¥3.50

March 31, 2018

June 27, 2018

3.50

September 30, 2018

December 5, 2018

(2) Dividends whose reference date falls in the current fiscal year, but where the effective date of dividend occurs after the end of
FY2018.
(Resolution)

Type of stock

Total dividend(Millions of yen)Fund for dividend

Dividends per
share (Yen)

Reference date

Effective date

Annual General
Meeting of
Shareholders on
June 25, 2019

Common stock¥577

Retained earnings¥17.50March 31, 2019

June 26, 2019

(Relating to Consolidated Statements of Cash Flows)*1 The reconciliation of the cash and due from banks in the consolidated balance sheets and cash and cash equivalents at
March 31, 2019, is as follows:
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Cash and due from banks¥517,074

Due from banks, excluding due from Bank of
Japan

(99)

Cash and cash equivalents¥516,974

28

THE YAMANASHI CHUO BANK 2019

44

(Relating to Lease Transactions)
Finance leases(Lessor)
1. Details of net investment in leases are as follows:
As of March 31, 2019㻌㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Gross lease receivables¥8,486

Estimated residual value

176

Unearned interest income(846)

Net investment in leases¥7,816

2. Expected amounts from the collection of gross lease receivables are as follows:
As of March 31, 2019㻌㻌㻌㻌㻌㻌㻌

(Millions of yen)

1 year or less

¥2,5681 to 2 years

2,083

2 to 3 years

1,620

3 to 4 years

1,175

4 to 5 years

589

Over 5 years

450

Total

¥8,486(Financial Instruments and Related Disclosure)
1. Qualitative information of financial instruments(1) Policy for financial instruments
The Group is involved in financial services including the leasing and the credit card business, etc. around the banking business.
Within banking, we are involved in the business of taking deposits, making loans and securities trading, as well as domestic
and foreign exchange operations, corporate bond underwriting, the over-the-counter sale of public bonds such as Japanese
government bonds, investment trusts and insurance. In addition, for the purpose of short-term fundraising, we enter into callloans and call money in the interbank market. In hedging foreign exchange risk and finance and using different currencies, weenter into arrangements such as forward exchange contracts and currency swap transactions. However, we do not conducttransactions whose structures are complicated and speculative transactions. Because we hold financial assets and liabilities
with interest rate risk, we conduct Asset Liability Management (ALM) to limit the disadvantageous influence from fluctuationsin interest.
(2) Nature and extent of risks arising from financial instruments
The financial assets that the Group holds are loans for domestic customers and domestic and foreign securities. Loans havecredit risk, brought about by the borrower’s nonperformance of contractual obligations. The contents of securities are mainly
bonds, stocks and investment trusts. The Group holds these securities for the purpose of holding to maturity, investment
available for sale and policy investment (business promotion). Securities have issuer’s credit risk, interest rate risk and market
price risk.
The Group regards the deposits from customers as its main supply of financial funds. The Group secures stable financing
by maintaining the soundness of financial affairs, but has liquidity risk that it may not be possible to obtain necessary funds
due to the outflow of unexpected funds.
As with other transactions, derivative transactions are subject to risks such as market, credit, and liquidity risks. Hedge
accounting is applied for derivative transactions that meet the requirements of hedge accounting based on internal standardsin accordance with JICPA Industry Audit Committee Report No. 25, July 29, 2002, “Treatment of Accounting and Auditing
concerning Accounting for Foreign Currency Transactions in the Banking Industry.”

29

THE YAMANASHI CHUO BANK 201945

(3) Risk management systems for financial instruments① Credit risk management
The Group performs maintenance of the credit screening system, fosters talented human resources and positively advances
credit risk management. The credit screening system keeps the credit screening section independent and performs strict
screening in advance, performs interim screening and assesses credit enhancements and credit risk management after
lending. Regarding administration, the marketing section and credit screening section or the headquarters and businessoffices perform mutual check functions. The Group tries for the observance of the financing rule and appropriate use andthereby acts in enhancement of system support such as the practical use of the financing support system. Furthermore, for
coping with risk fluctuating continually, the Group monitors the actual condition of customers through credit rating and selfassessment to be performed regularly or at any time. The Group introduced the “credit risk information integration service,”
which is a joint undertaking of the banks that joined the Regional Bank Association, aiming at upgrading credit risk
management and refining measurement of value at risk (VaR).
We monitor credit information, current prices and VaR, and manage the credit risk of issuers of securities and counterparty
risk of derivative transactions in the risk management section.
The situation of these risk management activities is reported to management regularly in the ALM Committee and theBoard of Directors.
② Market risk management(A) Interest rate risk management
The Group supports the needs of customers properly and, for the earning capacity improvement of the Bank, conducts
interest rate risk management as a basic policy. We devised “the basic policy for the interest rate risk hedge” as a generalrule every half term to control interest rate risk properly in the ALM Committee in which management is involved as themain members and involved in examining interest rate changes and reviews it regularly. In addition, in the ALM committee
meeting held monthly, the Group examines an interest rate predictive report that the interest rate prediction committee
produces and monitors the change in the interest rate risk amount of the whole bank account closely. In the risk
management section, the Group calculates VaR and basis point value (BPV), and manages the interest rate risk amountof the banking account. In addition, the Group performs stress tests based on a stress scenario extending to each risk
category. These results are reported to management regularly in the ALM Committee and the Board of Directors.
(B) Foreign exchange risk management
The Group manages foreign exchange risk by monitoring exposure to foreign exchange and VaR in the risk management
section. Moreover, it reports regularly to management in the ALM committee and Board of Directors, etc. The majority offoreign exchange risk is hedged by forward exchange contracts.
(C) Market price risk management
Regarding investment in financial instruments including securities, the Group conducts risk management in conformity
with a basic administration policy. The basic administration policy is as follows. The Group executes the market businesswhile attempting to secure fairness and prompt correspondence. The Group realizes the opportunity for earnings byactively taking risks that can be measured and managed. The proof of maximizing management vitality, like earnings andequity capital, is assumed to be a precondition. The operative plans are decided by the board of managing directors after
discussion with the ALM Committee. In making the plans, the Group examines the expected rate of return based on theprospect of interest rate and stock prices, market price risk and return in consideration of the correlation between thefinancial instruments invested in. The Group measures market price risks such as stock price risk using the VaR method.
The ALM Committee monitors VaR based on risk limits and the results of stress tests and tries for coexistence of securingof financial soundness and earning profit.
(D) Derivative transactions
For derivative transactions, the aim is for maintenance of strong management so as not to exert a negative influence on
profit and loss, and the Group tries to set position limits and operate loss-cut rules strictly based on the risk management
standard. Moreover, the Group reports regularly to management in the ALM committee and the Board of Directors, etc.

30

THE YAMANASHI CHUO BANK 201946

(E) Quantitative information regarding market risk
In principle, the Group undertakes a quantitative analysis of the market risks applicable to all of its financial instruments.
The volume of market risk is mainly managed utilizing the VaR method. In specific terms, market risks are managed in amanner that ensures that VaR (the amount of risk after writing down investment in shares undertaken for strategic
business purposes for a portion of VaR) does not exceed the maximum amount of risk (amount of capital allocation)
determined by a resolution of the Board of Directors or other appropriate bodies. The variance-covariance method(holdings period: 240 days; confidence interval: 99%; observation period: 240 business days) is used to measure VaR(excluding trading account securities) while taking into consideration the correlation among interest rates for shares andinvestment trusts. In addition, with respect to the yen-denominated interest risk applicable to demand deposits, internal
models are used to estimate core deposits and VaR used as the means for measurement. Trading account securities(trading securities) VaR is measured using the separate holding period of 10 days. Financial instruments that areconsidered to have little relevance to market risks, including shares of non-listed companies, are managed on a credit risk
basis. Taking into consideration the nominal amount of market risk applicable to the financial instruments held byconsolidated subsidiaries, these financial instruments are excluded from the scope of VaR measurement.
The Group’s VaR (excluding trading account securities) amounted to ¥47,737 million as of March 31, 2019 comparedwith ¥51,820 million as of the end of the previous fiscal year. The VaR of trading account securities amounted to ¥0 million.
The Group undertakes backtesting to compare VaR, calculated using VaR measurement models with actual income andloss. The results of this comparison are reported to the ALM Committee on a monthly basis. As a result of this backtesting,
the Group is confident that the VaR measurement models used are more than adequate in accurately identifying market
risks. However, VaR represents the amount of market risks arising with a certain probability using a statistical methodology
based on historical market volatilities. Accordingly, situations may arise where it is not possible to identify risks
appropriately due to market environment volatility that exceeds normally recognized parameters.
③ Liquidity risk management
The Group controls liquidity risk by managing the mismatch between the terms of investing and procuring funds as well as
holding highly liquid assets. Financing risk is limited by holding assets with high liquidity as payment reserves for unexpected
capital outflows, and a smooth financing resource is secured. Moreover, the Group reports regularly to management in therisk management committee and the Board of Directors, etc.
(4) Supplementary explanation of the fair value financial instruments
The fair value of financial instruments includes, in addition to the value based on the market price, the value reasonably
calculated if no market prices are available. Certain assumptions are used in the calculation of such amounts. Accordingly,
the results of such calculations may vary if different assumptions are used.

31

THE YAMANASHI CHUO BANK 201947

2. Fair values of financial instruments
Fair value and carrying amounts of financial instruments are shown below.
Some instruments, such as unlisted stocks, whose fair values are extremely difficult to determine, are not included in the tablebelow (see Note 2).
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Carrying amount inconsolidated balance

Fair value

Difference

sheets¥ 517,074¥517,074

－

－

－

4,949

4,958

9

Available-for-sale securities

1,128,453

1,128,453－(4) Loans and bills discounted

1,704,259

1,693,465

1,701,446

7,980

60,00060,000－Total assets¥3,403,943¥3,411,933¥7,989(1) Deposits¥2,922,898
2,923,165

33

62,09862,0991

222,065

222,064(1)¥3,207,295¥3,207,328

¥

¥

¥

¥

(1) Cash and due from banks¥－(2) Trading account securities
Trading securities(3) Securities
Held-to-maturity

714

Accrued income (Interest on loans)
Deferred income (Interest on loans and guarantee charge) *1(1,144)

Allowance for possible loan losses *2(10,363)(5) Other assets
Central clearing counterparty margin requirements

232

Accrued expenses (Interest on deposits)

2,923,131
62,096(2) Negotiable certificates of deposit

2

Accrued expenses (Interest on NCDs)(3) Borrowed money
Total liabilities
Derivatives *33

3

Hedge accounting is not applied

(431)
－

Hedge accounting is applied¥

Total derivatives

(431)

(431)
－

¥

(431)

－
－

¥

－

*1. Represents deferred interest received on loans and deferred guarantee fees received from a consolidated subsidiary performing guarantees
on the Bank’s loans to customers.
*2. General allowance for possible loan losses and specific allowance for possible loan losses provided to “Loans and bills discounted” areseparately presented in the above table.
*3. Derivative transactions recorded in “Other assets” and “Other liabilities” are aggregated and shown herein. Assets and liabilities attributable tothe derivative transactions are totally offset and the net liability position as a consequence of offsetting would be represented with brackets.

32

THE YAMANASHI CHUO BANK 201948

(Note 1) Method used for determining the fair value of financial instruments
Assets(1) Cash and due from banks
For due from banks without maturity, fair value is the value closest to acquisition cost or amortized cost. For due from bankswith maturity, the contract period is short (less than one year) and fair value is the value closest to acquisition cost or amortizedcost.
(2) Trading account securities
The fair values of securities such as bonds that the Bank holds for engaging in dealing are determined by reference to quoted
market price on stock exchanges or prices offered by correspondent financial institutions.
(3) Securities
The fair values of stocks are determined by reference to quoted market prices on stock exchanges. The fair values of bonds
are determined by reference to quoted market prices or prices offered by correspondent financial institutions. The prices of
the Bank’s guaranteed private placement bonds are calculated by discounting the estimated future cash flows for eachclassification based on the issuers’ internal rating and terms by using the risk-free interest rates plus credit cost rates andexpense rates. Investment trusts are determined by reference to their publicly available net asset value.
Information outlining notes for investment securities according to the purpose for which they are held is contained under“Relating to securities.”(4) Loans and bills discounted
As floating-rate loans and bills discounted reflect market interest rates over short periods, unless the credit standing of theborrower is significantly different after the loan was made or the bill was drawn, the fair value approximates the carrying value.
The fair value is therefore deemed equal to the carrying value.
The fair values of fixed-rate loans and bills discounted are their present values that are estimated for each classification
based on their type, internal rating, status of collateral and guarantee, and terms, and by discounting the future cash flows of
the principal and interest using the rates at which similar new loans would be made or market interest rates plus credit cost
rates in accordance with internal ratings and expense rates. The fair values of fixed-rate loans and bills discounted whoseterms are short (within one year) approximating their carrying values and are therefore deemed equal to the carrying values.
Losses from loans to borrowers in legal bankruptcy, in virtual bankruptcy and in possible bankruptcy are computed basedon estimated recoverable amounts. Thus, the fair values of those loans approximate the consolidated balance sheet amounts
at the closing date minus the currently estimated losses and are therefore deemed equal to the amounts.
The fair values of loans and bills discounted for which repayment terms are not set because of their attributes (e.g. loans
are limited to the amounts of pledged assets) are assumed to approximate their carrying values, considering the expected
repayment periods and interest rate conditions, and are deemed equal to the carrying values.
(5) Other assets
Since the fair value approximates the acquisition cost or the amortization cost, the fair value of central clearing counterparty
margin requirements is treated as the actual amount.

33

THE YAMANASHI CHUO BANK 201949

Liabilities(1) Deposits and (2) Negotiable certificates of deposit
The fair values of demand deposits are deemed equal to the amounts that would be paid (carrying values) if the payments
were demanded at the balance sheet date. The fair values of time deposits and negotiable certificates of deposit, which areclassified in accordance with their periods, are their present values that are estimated by discounting the future cash flows
using the rates that would be offered for new deposits to be received. The fair values of deposits and negotiable certificates ofdeposit with short deposit terms (within one year) or with variable interest rates approximate their carrying values and are
deemed equal to their carrying values.
(3) Borrowed money
Since money borrowed at floating rates reflects short-term market interest rates, and since the credit standing of the Bank andits consolidated subsidiaries does not vary greatly following such loans, the fair value approximates the book value, and thebook value is treated as the fair value. The present value of money borrowed at fixed rates is calculated by discounting thetotal value of the principal and interest of the borrowed money by the expected interest rate for similar loans. For borrowings
with short contract periods (less than one year), the fair value approximates the book value, and the book value is treated as
the fair value.
Derivatives
Derivative transactions are listed under “Relating to derivative transactions.”(Note 2) Financial instruments, whose fair values are extremely difficult to determine, recorded on the consolidatedbalance sheets are as follows. The following instruments are not included in ‘Assets (3) Securities’ in the abovetable showing the fair values of financial instruments as of March 31, 2019.
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Carrying amountUnlisted equity securities *1, *2¥ 569

Contributions to unions *

1,644

3

Total

¥2,214*1. They are excluded from disclosure because they do not have a market price and their fair values are extremely difficult to determine.
*2. Classified as available-for-sale securities; in the previous fiscal year, no impairment loss was recognized.
Classified as available-for-sale securities; in the previous consolidated fiscal year, no impairment loss was recognized.
*3. Investments in partnerships comprising partnership assets with fair values that are extremely difficult to determine, such as unlisted stocks,
are excluded from the disclosure of fair value.㻌

34

THE YAMANASHI CHUO BANK 201950

(Note 3) Maturity analysis for monetary claims and securities with contractual maturities
As of March 31, 20191 year or lessDue from banks
Securities¥480,248

Over 1 year lessthan 3 years¥㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)Over 3 years less Over 5 years less Over 7 years lessOver 10 years
than 5 years
than 7 years
than 10 years
¥

－

－

¥

－

¥

－

¥

－

28,246

121,301

170,233

69,016

148,31158,422

Held-to-maturity

506

1,310

2,527

605

－

－

Corporate bonds

506

1,310

2,527

605

－

－

27,740119,990

167,706

68,411

148,31158,422

10,00063,70087,10052,00057,40050,000

Municipal bonds

13,582

44,37948,361

11,081

58,977

6,301

Corporate bonds

4,158

11,911

12,374

4,220

20,835

1,000

－

－

19,8701,109

11,0991,121

358,262

332,013

236,463

166,058

204,220

268,51360,000

－

－

－

－

－

¥926,758¥453,315¥406,696¥235,075¥352,532¥326,935

Available-for-salesecurities that havematurities
Japanese government
bonds

OthersLoans and bills
discounted *1
Central clearing
counterparty margin
requirement *2
Total*1 Of loans and bills discounted, the portion whose timing of collection is unforeseeable, such as loans to borrowers in legal bankruptcy, in virtual
bankruptcy and in possible bankruptcy, amounting to ¥21,879 million, is not included in the above table. Loans that do not have contractual
maturities, amounting to ¥116,678 million are not included either.
*2 Because no period is set for the central clearing counterparty margin requirement, it is included under “1 year or less.”(Note 4) Maturity analysis for interest-bearing debt
As of March 31, 20191 year or lessOver 1 year lessthan 3 years㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)Over 3 years less Over 5 years lessOver 7 years lessOver 10 years
than 5 years
than 7 years
than 10 years¥2,561,580¥252,959¥ 18,466

¥－

¥－

¥－

Negotiablecertificates ofdeposittransactions

62,096

－

－

－

－

－

Borrowed money

1,862

88,827

131,376－－－¥2,625,538¥341,786¥149,842

¥－

¥－

¥－

Deposits

Total* Non-interest-bearing deposits such as checking accounts are excluded. Demand deposits are included in “1 year or less.”

35

THE YAMANASHI CHUO BANK 201951

(Relating to Securities)*1 In addition to including the “Securities” listed on the consolidated balance sheets, this includes “Trading account securities.”*2 Subsidiary and affiliated company shares are listed as notes to the financial statements.
1. Trading securities
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Unrealized gains/losses recognized as income

Trading securities¥－

2. Held-to-maturity debt securities
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Carrying amount inconsolidated balance
Fair value
Differences
sheetsType
Fair value exceeded carrying amountCorporate bonds¥3,924¥3,940¥16

Fair value not exceeded carrying amountCorporate bonds

1,025

1,017

(7)

¥4,949¥4,958¥9Total

3. Available-for-sale securities
As of March 31, 2019Type㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Fair value consolidated
Cost
Valuation differencesbalance sheets¥ 54,308¥ 20,054¥ 34,254

594,127

575,594

18,532

Japanese government bonds

353,225

338,747

14,477

Japanese municipal bonds

185,652

182,713

2,939

Japanese corporate bonds

55,24854,133

1,115

163,391

155,638

7,752

22,54922,514

34

811,827751,287

60,5398,952

10,564(1,611)

364

364

(0)

Japanese government bonds

－

－

－

Japanese municipal bonds

－

－

－

Japanese corporate bonds

364

364

(0)

307,309313,193(5,884)

10,472

10,518(46)

316,626

324,122(7,495)¥1,128,453¥1,075,410¥53,043

Japanese stocks
Bonds

Fair value exceeded
cost

Other securities
Foreign securities
Sub-total
Japanese stocks
Bonds

Fair value notexceeded cost

Other securities
Foreign securities
Sub-total
Total

36

THE YAMANASHI CHUO BANK 201952

4.Held-to-maturity debt securities soldFrom April 1, 2018 to March 31, 2019Type㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Sales costs

Sales proceeds

Gains on sales¥－

Japanese corporate bonds¥－¥－

The above securities were sold due to redemption by the issuer.

5.Available-for-sale securities soldFrom April 1, 2018 to March 31, 2019Type㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Sales amountGross realized gains

Gross realized losses

Japanese stocks¥ 12,817¥ 3,208¥ 1,601

Bonds

109,2373,644

47Japanese government bonds

105,2323,554

47Japanese municipal bonds

4,004

89

－

Japanese corporate bonds

－

－

－

55,102

1,827

2,022

17,041

70

275¥177,157¥8,681¥3,671Other securities
Foreign securities
Total

6. Securities for which the purpose for holding has changed
Not applicable
7. Securities recognized for revaluation loss
Among securities other than securities for trading purposes (except securities for which the fair value is extremely difficult toascertain), for securities that are not recognized as having prospects of recovery after their fair value fell sharply compared withthe acquisition costs, fair value is recognized in the consolidated balance sheets, and valuation difference is treated as an
impairment loss (“revaluation loss”) in the consolidated year under review.
No revaluation loss was recognized during the previous fiscal year.
No revaluation loss was recognized during the consolidated fiscal year under review.
The impairment accounting standards applied in cases where fair value is judged to have fallen significantly are as follows:①Across-the-board impairment losses shall be booked for securities whose fair values as of the consolidated balance sheet datedecline by 50% or more compared with their acquisition costs.
②Impairment losses shall be booked for securities whose fair values decline by 30% or more, but less than 50% where it isdeemed that there is little likelihood of a recovery in value after taking into consideration fair value levels over the past year.
③Impairment losses shall be booked for securities whose fair values decline by less than 30% as and when deemed necessary
after taking into consideration the financial standing and related factors of the issuer.
(Relating to money held in trust)Not applicable37

THE YAMANASHI CHUO BANK 201953

(Relating to Net Unrealized Gains/Losses on Available-for-Sale Securities)
Available-for-sale securities were valued at market and net unrealized gains/losses on valuation were as follows:
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)Amounts

Valuation difference¥53,043

Other securities

53,043

Deferred tax liabilities

16,008Net unrealized gains (before non-controlling interests)

37,034Non-controlling interests

128

Net unrealized gains on available-for-sale securities¥36,906(Relating to Derivative Transactions)
1. Derivative instruments not accounted for as hedges
Regarding the derivative instruments which are not accounted for as hedge transactions, contract amount or notional amount, fairvalue and unrealized gain or loss for each type of derivative transactions, at the end of the consolidated balance sheet date anddetermination of fair value are as follows. Contract or notional amounts do not show market risk of derivative instruments.
(1) Interest-related derivative instruments
Not applicable(2) Currency-related derivative instruments
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)Type

Contract amount or
notional amountOver 1 year

Fair value

Unrealized gain/loss

㻌 Currency futures
Financial
instruments
exchange㻌 㻌 Sold

－

－

－

－

㻌 㻌 Buy

－

－

－

－

㻌 㻌 Sold

－

－

－

－

㻌 㻌 Buy

－

－

－

－

¥21,904¥21,904¥(424)¥(424)

Sold

1,444

－

(4)

(4)

Buy

570

－

(2)

(2)

Sold

－

－

－

－

Buy

－

－

－

－

Sold

－

－

－

－

Buy

－

－

－

－

－

－

¥(431)¥(431)㻌 Currency options

Currency swaps
Forward rate agreements

OTC

㻌 Currency options

㻌 Other

Total

Notes: 1. Derivative instruments are revalued to fair value. Changes in fair value are included in the consolidated statements of income.
2. Determination of fair value:
Fair value is determined based on the discounted net present value model.

38

THE YAMANASHI CHUO BANK 201954

(3) Stock-related derivative instruments
Not applicable(4) Bond-related derivative instruments
Not applicable(5) Commodity-related derivative instruments
Not applicable(6) Credit derivative transactions
Not applicable
2. Derivative instruments accounted for as hedges
Not applicable(Relating to Employees’ Retirement Benefits)
1. Outline of employees’ retirement benefits
To provide for employees’ retirement benefits, the Bank has adopted a funded defined-benefit pension plan and a defined
contribution pension plan.
The defined-benefit corporate pension plan (funded plan) pays a lump sum or a pension based on employee compensation andlength of service.
A retirement benefit trust has been established within the defined-benefit corporate pension plan.
The lump-sum retirement plan (an unfunded plan, but as a result of the establishment of the retirement benefit trust, it has
become a funded plan) pays a lump sum based on employee compensation and length of service.
2.Funded defined-benefit pension plan
(1) Reconciliation of retirement benefit obligations at beginning of year and end of year
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
¥31,254

Retirement benefit obligations at beginning of year
Service cost

1,118Interest cost

121
240

Actuarial gains and losses(1,324)Retirement benefits payment
Past service cost

－

Other

－
¥31,409

Retirement benefit obligations at end of year

(2) Reconciliation of pension assets at beginning of year and end of year
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Pension assets at beginning of year

¥32,153
862

Expected return on plan assets
Actuarial gains and losses(691)

Employer's contribution

2,601

Retirement benefits payment

(731)

Other

－
¥34,194

Pension assets at end of year

39

THE YAMANASHI CHUO BANK 201955

(3) Reconciliation of retirement benefit obligations and pension assets at end of year and liabilities and assets of retirement
benefits recorded in the consolidated balance sheets
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Retirement benefit obligations of funded plan

¥ 31,409

Pension assets(34,194)㻌

(2,785)Retirement benefit obligations of unfunded plans－

Assets and liabilities recorded in the consolidated balance sheets, net¥ (2,785)(Millions of yen)¥

Liability of retirement benefits236(3,021)

Assets of retirement benefits
Liabilities and assets recorded in the consolidated balance sheets, net¥ (2,785)(4) Breakdown of retirement benefit costs
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
¥1,118Service cost
Interest cost

121

Expected return on plan assets(862)

Actuarial gains and losses recorded in expenses

765

Past service costs recorded in expenses

(23)

Other

－
¥1,119Retirement benefit costs of defined benefit plan(5) Remeasurements of defined benefit plans
Breakdown of items (before tax-related effects) recorded in remeasurements of defined benefit plans are as follows:
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Past service costs¥ 23

Actuarial gains and losses

166

Other

－㻌

Total

¥189

(6) Accumulated adjustment for retirement benefits
The breakdown of items (before the deduction of tax effects) recorded in accumulated adjustment for retirement benefits
is as follows:
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Unrecognized past service costs¥ (75)

Unrecognized actuarial gains and losses

4,435

Other

－㻌

Total

¥4,35940

THE YAMANASHI CHUO BANK 201956

(7) Pension assets① The percentage of each main category for total pension assets is as follows:
As of March 31, 2019
Stocks

34％

Bonds

41％

Life insurance general account

15％

Other

10％

Total

100％

Note: Included in total pension assets is 12% for retirement benefit trusts established in the corporate pension plan comparedwith 14% as of the end of the previous fiscal year, and 31% for retirement benefit trusts established in the lump-sum
retirement plan compared with 32% as of the end of the previous fiscal year.

② Method for calculating the long-term expected rate of return on plan assets
To determine the long-term expected rate of return on plan assets, the Bank considers the current and projected allocationsof pension assets, as well as the current and expected long-term rate of return for the various assets that make up thepension assets.
(8) Basis for calculating actuarial calculations
Basis for calculating main actuarial calculations (weighted average)
From April 1, 2018 to March 31, 2019
Discount rate

0.3%

Long-term expected rate of return on plan assets

2.7%

Rate of salary increase
Defined-benefit corporate pension plan

3.6%

Lump-sum retirement plan

3.5%

3. Defined contribution funds
The required contribution for the current consolidated fiscal year under the Bank’s defined-contribution pension plan is ¥202
million compared with ¥99 million as of the end of the previous fiscal year.

41

THE YAMANASHI CHUO BANK 201957

(Stock Options and Other Related Information)
1. Accounting line item and the amount of stock options charged as expenses
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

General and administrative expenses¥33

2. Description of stock options/Changes in the size of stock options(1) Description of stock options
2018 Stock Options
Category and number of people to whom stock options are granted

The Bank’s directors (excluding outside directors): 12

Type and number of shares granted as stock options

Common stock: 16,540 shares

Date on which stock options were granted

July 26, 2018

Vesting terms and conditions

Vesting terms and conditions have not been prescribed

Vesting period

Vesting period has not been prescribed

Exercise period

July 27, 2018 to July 26, 2048

Note: Reflecting the five-to-one stock consolidation conducted on the effective date of October 1, 2018.

(2) Changes in the size of stock options
The following describes changes in the size of stock options that existed during the fiscal year ended March 31, 2019. The
number of stock options is converted into the number of shares.
① Number of stock options
2018 Stock Options
Stock options which are not yet vested (shares)
As of March 31, 2018－

Granted16,540Forfeited－

Vested16,540

Balance of stock options not vested－

Stock options which have already been vested (shares)
As of March 31, 2018－

Vested16,540Exercised－

Forfeited－

Balance of stock options not exercised

16,540Note: Reflecting the five-to-one stock consolidation conducted on the effective date of October 1, 2018.

② Per share information2018 Stock Options
Exercise price (Yen)¥1

Average price per share upon exercise (Yen)－Fair value per share at the grant date (Yen)2,050

Note: The average price per share upon exercise and the fair value per share at the grant date reflect the five-to-one stock consolidation
conducted on the effective date of October 1, 2018.

42

THE YAMANASHI CHUO BANK 201958

3. Method for estimating the fair value per share of stock options
During the fiscal year ended March 31, 2019, the fair value per share with respect to the 2018 Stock Options was estimated asfollows:(1) Evaluation technique used to estimate the fair value per share: Black-Scholes method(2) Main numerical and estimation methods
2018 Stock Options
Stock price volatility (Note 1)

35.8％

Projected residual period (Note 2)

2.7 years

Projected cash dividends (Note 3)¥7.00/share

Risk-free interest rate (Note 4)(0.12)％

Notes: 1. Stock price volatility is calculated based on the stock price performance for the period (weekly from the week of November 9, 2015 to
the week of July 16, 2018) that corresponds to the projected residual period.
2. The projected residual period is estimated based on the average period in office of directors (excluding outside directors) who haveretired in the past.
3. Projected cash dividends are based on cash dividend results for the fiscal year ended March 31, 2018.
4. The risk-free interest rate is the yield on government bonds for the period that corresponds to the projected residual period.

4. Estimation method for the number of stock options vested
Because it is difficult to reasonably estimate the number of stock options that will be forfeited in the future, the number of stock
options that has actually been forfeited is solely reflected for the stock options that have already been vested.

43

THE YAMANASHI CHUO BANK 2019

59

(Relating to Tax Effect Accounts)
1. The tax effects of significant temporary differences and tax loss carry-forwards which resulted in deferred tax assets andliabilities are as follows:
As of March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Deferred tax assets¥ 4,024

Net defined benefit liability
Allowance for possible loan losses

2,773

Losses on investment securities

1,379
491

Depreciation
Other

1,978

Sub-total

10,646

Valuation allowance(3,816)

Total deferred tax assets

6,829

Deferred tax liabilities
Unrealized gains on available-for-sale securities(16,008)

Other(1,310)Total deferred tax liabilities(17,319)

Net deferred tax assets (figures in parentheses represent liabilities)¥(10,489)

2.A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying
consolidated statements of income is as follows:
As of March 31, 2019
Normal effective statutory tax rate－

Valuation allowance－

Income not taxable for income tax purposes－

Expenses not deductible for income tax purposes－

Other—net－

Actual effective tax rate－

Note: The reconciliation between the normal effective statutory tax rate and the actual effective tax rate for the fiscal year ended March 31, 2019is not presented since the difference was less than 5 percentage points.
(Relating to Asset Retirement Obligations)Not applicable(Relating to Investment and Rental Property)
Not applicable

44

THE YAMANASHI CHUO BANK 201960

(Segment Information by Type of Business)【Segment information】
Segment information is not shown in these statements, since the banking business is the only reportable segment.

【Related information】
From April 1, 2018 to March 31, 2019
1. Information for service segments(Millions of yen)
Loans
Ordinary income from
customers

Securities investment¥16,984

Other¥23,260

Total¥12,108¥52,353

Note: Instead of the net sales of a non-financial company, ordinary income in gross is indicated.

2. Information for geographic areas(1) Ordinary income
Since the amount classified as ordinary income from external customers in Japan exceeds 90% of ordinary income on the
consolidated statements of income, it has been omitted here.
(2) Tangible fixed assets
Since the amount of tangible fixed assets located in Japan exceeds 90% of the amount of tangible fixed assets on the
consolidated statements of income, it has been omitted here.
3. Information about major customers
Since no ordinary income from specific customers represents more than 10% of ordinary income on the consolidated statements
of income, it has been omitted here.
【Information about impairment loss of fixed assets by reportable segment】
Since the Group has only a single reporting segment (banking), disclosure of segments lacks importance and has thus been
omitted here.
【Information about the amortization of goodwill and unamortized balance by reportable segment】
Not applicable【Information about the gain recognized on negative goodwill by reportable segment】
Not applicable【Related-party transactions】
1. Related-party transactions(1) Transactions with parties related to the company submitting consolidated financial statements
㻌 ① The parent company and major shareholders of the company submitting consolidated financial statements (limited tocompanies, etc.)
Not applicable② Non-consolidated subsidiaries and related companies, etc. of the company submitting consolidated financial statements
Not applicable③ Companies, etc. with the same parent company as the company submitting consolidated financial statements, andsubsidiaries, etc. of other related companies of the company submitting consolidated financial statements
Not applicable

45

THE YAMANASHI CHUO BANK 201961

④ Related-party transactions involving directors, corporate auditors and major stockholders (individuals only) of the Bank
From April 1, 2018 to March 31, 2019
Name

Relationship

Statutory
auditorToshihito
FuruyaAddress－㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)
Paid-in
capitalPosition－

Corporate
auditor of theBank,simultaneously
serving as legal
advisorVotingrights (%)

Details of
businessrelationship

0.02

Lending
Compensation
for legal
advisory
services

Transactions
Lending

Transaction Accounting Year-end
amountnamebalance
－

Loans

96

2

－

－

2

－

－

Interest
incomeLegaladvisoryfee paid

Note: Transaction terms and policies for determining transaction terms㻌 㻌 㻌 㻌 Transaction terms are determined in the same manner as with clients in general.

(2) Transactions with consolidated subsidiaries and related parties of the company submitting consolidated financial statements㻌 㻌 Not applicable
2. Notes regarding parent company or other important related companies㻌 㻌 Not applicable(Relating to Business Combinations, etc.)
Not applicable(Per Share Information)
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Yen)Net assets per share¥6,652.04

Profit per share

147.15

Diluted profit per share

146.78Notes: 1.㻌 The Bank consolidated its shares at a ratio of five shares to one share on the effective date of October 1, 2018.
Per-share information is calculated on the assumption that this consolidation of shares took place at the beginningof the previous consolidated fiscal year.
2.㻌 The basis for calculating profit per share and diluted profit per share is presented as follows.
From April 1, 2018 to March 31, 2019㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 㻌 (Millions of yen)

Profit per share
Profit attributable to shareholders of the parent¥4,908Amount not attributable to owners of common stock－

Profit attributable to shareholders of the parent related to common
stock

4,908

Average balance of common stock (Thousands of shares)

33,356

Diluted profit per share
Adjustment amount of profit attributable to shareholders of theparent¥－Increase in the number of common stock (Thousands of shares)

82

New share subscription rights (Thousands of shares)

82(Important Subsequent Events)
Not applicable46

THE YAMANASHI CHUO BANK 201962

Corporate Data(as of March 31, 2019)

Common Stock: ¥15,400 million

Breakdown of Stockholders

Number of Shares :	Authorized 79,600,000 shares
Issued		
33,983,000 shares

Financial institutions 135,421
Securities companies 2,109
Other corporations
62,137
Foreigners
43,306
Individuals and others 95,693

Total

338,666

Number of
Stockholders: 6,049

Stock Listing: First Section of the Tokyo Stock Exchange

Transfer Agent: Mitsubishi UFJ Trust & Banking Corporation

shares

39.99%
0.62%
18.35%
12.79%
28.25%* Shares (1 trading unit: 1,000 shares)
Note: The category “Individuals and others” contains treasury
stock of 6,954 trading units of shares.

Major Stockholders
Number of shares held
(thousands)

Percentage of
all shares issued (%)

Japan Trustee Services Bank, Ltd. (Trustee Account)

1,882

5.69

The Master Trust Bank of Japan, Ltd. (Trustee Account)

1,376

4.16

Meiji Yasuda Life Insurance Company

1,209

3.66

The Yamanashi Chuo Bank, Ltd. Employees’ Stockholdings

1,131

3.42

MUFG Bank , Ltd.

790

2.39

Fukoku Mutual Life Insurance Company

600

1.81

Teikyo University

595

1.80

CBNY-GOVERNMENT OF NORWAY

531

1.61

FUJI KYUKO CO., LTD

531

1.60

Tokio Marine & Nichido Fire Insurance Co., Ltd.

501

1.51

9,149

27.70

Name

Total

Yamanashi Chuo Bank’s Share Price and Trading Volume on the Tokyo Stock Exchange
2,750

Yamanashi Chuo Bank’s share price (yen)

2,500
2,250
2,000
1,750

Tokyo Stock Price Index (TOPIX)

1,500
1,250
3,000
2,000

Trading volume (thousands)

1,000
0

Apr.
2017

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2018

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2019

Feb.

Mar.

* On October 1, 2018, every five (5) shares were consolidated into one (1) share. This was calculated on the assumption that the consolidation of shares was conducted at the
beginning of the fiscal year ended March 31, 2018.

Consolidated Subsidiaries

Tokyo Stock Price Index (TOPIX)
Name

1531.8
Yamanashi Chuo Guarantee
Co., Ltd.
1568.37
1611.9
Yamanashi Chugin Lease Co.,Ltd.
1618.61
Yamanashi Chugin DC Card
Co., Ltd.
1617.411674.75Consulting Co., Ltd.
Yamanashi Chugin Management
1765.96
1792.08
1817.56
1836.71

Yamanashi Chuo Bank’s share price (yen)(Millions of yen)

Yamanashi Chuo
Bank’s share (%)

20

99.8

Capital

2460
2215
2370
20
2255
20
2155
2365
200
2515
2390
THE YAMANASHI CHUO BANK 2019
63 2460
2310

66.0
67.5
87.5

Trading volume (thousands)
Lines of business

4003
Loan guarantees
4879
5241
Leasing2883
Credit cards 3037
4323
Consulting, economic
research
4158
4930
4810
4044

Board of Directors and Corporate Auditors(as of July 1, 2019)

ChairmanManaging Directors

Directors

Standing Corporate Auditors

Nakaba Shindo

Yukio Osada
Kimihiro Asai
Norihiko Tanaka

Yutaka Fujita
Yoshiaki Furuya
Fumihiko Furuya
Masahiko Yamadera
Michio Masukawa
Riyo Kano

Masaki Saito
Akira Omata

President

Mitsuyoshi Seki
Senior Managing Director

Kazuhiko Kitta

Corporate Auditors

Magozaemon Takano
Toshihito Furuya
Kouichiro Horiuchi

Organization(as of July 1, 2019)

Annual General Meeting of Shareholders
Corporate Planning
Board of Directors

Chairman

Corporate Planning Division
Personnel Division

Planning and
Administration

Corporate
Administration

Management Control Division
General Affairs Division

President
Deputy President
Senior Managing Director

Credit Screening

Credit Screening Division

Financial Markets

International and Treasury Division
Business Promotion Division

Managing Directors(in charge of International Division)

Directors

Business Planningand Control
Department

Non-Standing Director

Sales Promotion Planning Division
Consultation Sales DivisionMarketing
Advise Report

Western Tokyo Consultation Sales Division

Nomination andRemuneration Advisory
Committee

Operation Administration Division
Operations

Systems Administration Division
Central Operations Division

Board of Corporate Auditors
Secretariat
Standing Corporate Auditors
Tokyo Liaison Office

Corporate Auditors
Office of Corporate Auditors

Auditing Division

Auditing

Branches
THE YAMANASHI CHUO BANK 201964

20-8, Marunouchi 1-chome,
Kofu, Yamanashi 400-8601, Japan
Phone: 055-233-2111
URL: https://www.yamanashibank.co.jp/