Financial
Financial update
update(3rd(3rd quarter
quarter result
result andand FY2007
FY2007 forecast)
forecast)

Financial result for the 3rd quarter in FY2007(non-consolidated) 1
Core net business income, main profitability index, steadily increased（up 7% compared to lastyear） mainly due to higher interest margin between loan rate and deposit rate. However, net
business income , ordinary profit and net income decreased compared to same period of last year
due to impairment loss on investments and increase of reserves for possible loan losses。
（\ billion）

FY 2007
FY 2006
3rd Quarter 3rd Quarter

Changechange

Net business income

3345△ 11 △２６％ Net interest income（+4 billion）

Core net business income

4138

Gross business profit8794

3 ＋７％ Mainly due to increase in interest margin.
△ 7 △８％Net interest income

8278

4Net fee and commissions

11121△ 74△ 12

Other profit
G&A expenses
Transfer to general reserve forpossible loan losses

54522

△ 0

△ 21Net non-recurring gains(losses)△ 3△ 62

Disposals of non-performing loans

1082Net gains on equity securities

5063038△ 7 △２１％

△ 11△ 2Gains on loan charged-offs

220

Other special losses
Net income before tax

2290402△ 9Net income after tax

1324△ 10 △４５％

Ordinary profit
Net special gains (losses)

Other profits（△12 billion）
Mainly due to impairment loss on
investments due to price mark downs（△10.4 billion）.

Disposals of non-performing loans.
（+2 billion）
Increased due to more strict standard.

Forecast for FY2007(non-consolidated)2

Conservatively prepared for further increase in impairment of investments due tofuture market fluctuations and in reserves for possible loan losses.
○FY 2007 forecast〔non-consolidated〕\billion

FY 2007 forecast
Change from forecast change
at the beginning△ 24 △４２％△ 17 △３４％△ 15 △５０％333315Net business income

Ordinary profit
Net income○Reasons for forecast change
・Prepared for further increase in impairment ofinvestment securities conservatively (+20 billion,10.3billion in 3rd quarter and additional 9.7billion
in 4th quarter）.
・Increased credit cost by 4 billion preparing for further
increase in possible loan losses （expect2.7 billion
in 3rd quarter and additional1.3billion in 4th quarter）.

Credit cost

10＋ 4 ＋６６％

○Gross business profits\billion

FY2006

FY200510610816△ 19124
106161124107
15110113FY2007(forecast)Gross business profit
Net interest income
Net fees and commissions

Gain/loss on bonds

Credit cost

○Gross business profit
Radical decrease in gain on bonds led temporary
decrease in gross business profit.
○Forecast for FY after 2007
Net interest income and fees and commissions showing
steady increase following past trend.
After FY2007, expect profit recovery as used to be.

Returns to Shareholders in FY2007

3Sustain current ‘Shareholders Return Policy’ in FY 2007 as the management promised.
●Shareholder Return Ratio* Targeting ratio equal to or higher than 40%.
● Dividend Pay-out Ratio
Targeting ratio equal to or higher than 20%.
⇒Expect 8 yen per share (pay-out 42%) and shareholders return ratio approximately 100%.
○Shareholders return history
FY2003

FY2004

FY2005

FY2006

FY2007(forecast)

Number of stocks repurchased（thousands）

24,401

4,122

9,955

20,815Max.15,000

Total amount of stock repurchases（Y bn）

8.1

1.8

7.2

14.5

Max.11.1

Number of stocks retired（thousands）－－

13,00015,00015,000

Number of treasury stocks（thousands）

30,15433,84530,46635,931

Total dividends（Y bn）

4.1

4.9

4.9

5.6

6.3

Dividend per stock（Y）

5.0

6.0

6.0

7.0

8.0

Net income after tax (non-consolidated)（Y bn）

22.8

26.1

24.7

26.1

15.0

Shareholder return ratio（％）

54.2

26.2

49.2

77.0

approx.100%

Dividend pay-out ratio（％）

18.4

19.1

20.0

21.6

approx.42%* Shareholder Return Ratio＝(Dividends paid ＋ Stock repurchases) / Net income after tax

Inquiries related to this presentation should be addressed toThe Joyo Bank, Ltd.
Corporate Planning Division
Investor Relations
TEL : (81)29-300-2603
FAX : (81)29-300-2602
e-mail : ir@joyobank.co.jp
http://www.joyobank.co.jp/

This material contains forward-looking statements. These statements are not be represented as providing aguarantee of the Bank’s future performance, and actual results may be subject to risks and uncertainties.
Please note that future performance may differ from the views presented here owing to changes in the operating
environment and other factors. Information contained herein may be changed or revised without prior notice.
Copyright© 2008 The Joyo Bank, Ltd.
This document may not be reproduced or distributed to any third party without prior written consent to The Joyo
Bank, Ltd.