Performance Highlights (YMFG)Performance during the fiscal year ended March 31, 2014

Business Profits from Core Operations/
Ordinary Profits/Net Income (Three Banks)

Capital Adequacy Ratio (YMFG)
YMFG’s consolidated capital adequacy ratio (uniform

Business profits from core operations were down ¥3.7 billion

international standard) under Basel III was 12.69%. The totalyear on year, to ¥30.5 billion. This outcome stemmed fromTier 1 capital adequacy ratio was 11.10%, and consolidated

a decrease in other ordinary income in comparison withcommon equity Tier I capital adequacy ratio was 11.10%.

the previous fiscal year’s gain on transfer in line with thesecuritization of loans.
Ordinary profits rose ¥4.3 billion, to ¥50.0 billion, and net

Capital Adequacy Ratio
Tier I Ratio
14(%)

13.34

income amounted to ¥33.1 billion.

12.69

13

Business Profits from Core Operations
Ordinary Profits
Net Income
6050(Billions of yen)1250.0

11

11.75

45.7
39.4

40

34.2

31.0

30.5

30

33.1

30.5

11.10

2013

2014

9.52

921.5

020

2012

(Basel III)

(Basel II)

100

11.01

102012

2013

2014

Capital Strategy (Euro-dollar convertible bonds
issued and Repurchase own shares)

Non-Performing Assets Based on the Financial
Revitalization Law (Three Banks)
Doubtful Assets
Bankrupt and Quasi-Bankrupt Assets
Sub-Standard Loans
Non-Performing Loan Ratio

Euro-dollar convertible bonds issued (Dec. 2013)
Amount
Coupon$300 million
0% (zero cost)Maturity

5 yearsObjective(Billions of yen)(%)

As the Group having strong operations in Asia, to respond400

4

to rising demand for foreign currency loans which corporate

300

2.68

YMFG
2.34 3

2.68
2.31

200

157.4

157.5

2012

53.5

81.4

78.0

63.4

23.0

26.022.9

2013

operations, to lower funding cost of U.S.$ with contingent
convertible clause and clause determining face value cash

2

settlement intended to minimize dilution shareholder value.

1

Repurchase own shares (Dec. 2013)

140.9

53.0
1000

YMFG
141.1

customers spend on the development of their overseas

54.7

2014

Amount

09 million shares

Objective

To offset the impact of dilution by raising capital efficiency.
Diagram of scheme(Before)Debt(CB issued)(Repurchase own shares)

Debt

Debt

CBCB
Capital Adequacy
Ratio is still high.
(12.69%)
CapitalCapitalCapitalRepurchase own shares
YMFG

4Lowering funding cost of U.S.$ with minimizing dilution shareholder valueRatings for YMFG, Yamaguchi Bank andMomiji Bank

Deposit Balance (Three Banks)

Ratings for the Group companies were A (stable) for YMFG,
A+ (stable) for Yamaguchi Bank and Momiji Bank.

¥8,809.4 billion including Negotiable Certificates of Deposit

The total deposit balance at term-end was ¥8,187.2 billion, or(NCDs). This came about because of the expansion of products
and services and steady marketing efforts based on solidcommunity relationships.

AAA

Rating and Investment Information, Inc.

AA(As of June 20, 2014)

A

YMFG

BBB
B

A+ (stable)
A+ (stable)

C

8,464.7

8,809.4

2012

2013

2014

6,000

Momiji BankCC

8,325.3
8,000

Yamaguchi Bank

CCC

(Billions of yen)

10,000A (stable)

BB

Deposit Balance (Three Banks)

4,000
2,000
0

Note: The deposit balance includes the NCD balance.

Balance of Loans/Balance of Personal Loans (Three Banks)
The balance of loans at term-end was ¥6,032.2 billion, as a result of active efforts to live up to the trust placed in us by ourcustomers by meeting healthy demand for funds.
Balance of Loans
Balance of Loans in Japan
Balance of Loans to Small and Medium-Sized Businesses(Billions of yen)

7,000
6,000

Balance of Personal Loans

5,812.5

5,819.9

5,788.7

1,000

6,003.2

5,793.8

5,000

1,062.5
18.3%

800

4,000
3,504.8
60.5%

3,000

1,020.2
17.6%

1,078.618.0%

600

3,520.6
58.6%

3,383.5
58.4%

400

2,000

200

1,0000(Billions of yen)

1,200

6,032.2

2012

2013

02014

2012

2013

2014

Note: The percentages of loans to small and medium-sized businesses and personal loans are calculated on the basis of the balance of loans in Japan.

Dividend Policy (YMFG)

Expected Performance for the Fiscal YearEnding March 31, 2015 (YMFG)We have continued to provide stable dividends to ourshareholders while securing profits and reinforcing financial

YMFG aims to achieve its consolidated ordinary profits ofhealth to maintain our credit strength.

¥41.5 billion and net income of ¥24.0 billion.

In the year ended March 31, 2014, the dividend per shareat term-end was ¥7. Combined with the interim dividend of ¥6per share, the full-year dividend amounted to ¥13 per share.
FY2011FY2012FY2013(Yen)
FY2014(Forecast)

Annual dividend per share
11.0(Interim dividend) (5.0)

12.0
(6.0)

13.0
(6.0)

14.0
(7.0)

Annual Report20145