YMFG Profile (As of July 31, 2016)

YMFG Networks

Dalian Branch(Yamaguchi Bank)

Yamaguchi Bank
(Head office: Shimonoseki City)

YM Securities

Busan Branch
Qingdao Branch(Head office: Shimonoseki City)

Momiji Bank
(Head office: Hiroshima City)(Yamaguchi Bank)(Yamaguchi Bank)

Hong Kong Representative Office(Yamaguchi Bank)

Kitakyushu Bank
(Head office: Kitakyushu City) Yamaguchi Bank
Networks in Japan: 133 (109 head office and branch offices, 24 sub-branch offices)
Networks in overseas: 4 (3 branch offices, 1 representative office) Momiji BankNetworks in Japan: 114 (96 head office and branch offices, 18 sub-branch offices) Kitakyushu Bank
Networks in Japan: 36 (35 head office and branch offices, 1 sub-branch office) YM Securities
Networks in Japan: 19 offices

Contents
YMFG Profile .........................................................................1
Message from the President ...................................................3

Economies and Industries of Yamaguchi Prefecture,
Hiroshima Prefecture, and Kitakyushu City (Reference) .........12YMFG Medium-Term Management Plan (FY2016–FY2018) ....4

Overseas Networks ..............................................................13Solution Model (Expand the Business Evaluation Function) .....5

Corporate Governance.........................................................14

Lifecycle Management Model (Demonstrate FP Function) .......6Internal Audits and Compliance System ...............................15

Improve Ability to Resolve Issues ............................................7

Risk Management System ....................................................16

YMFG Forecast for the Fiscal Year Ending March 31, 2017 .....8

Contributions to the Community and the Environment ........17

Performance Highlights (YMFG) .............................................9

Financial Section ..................................................................18

Performance Highlights (Three Banks) ..................................11Disclaimer Regarding Forward-Looking Statements
The forward-looking statements in this Annual Report are based on management’s assumptions and beliefs in light of information available as of the date ofpublication, and involve both known and unknown risks and uncertainties. Actual financial results may differ materially from those presented in this document,
being dependent on a number of factors.

1

YMFG Annual Report 2016

YMFG Financial Highlights (For the fiscal year ended March 31, 2016)¥10.4

trillion¥9.5

trillion

Total Assets

Net Income(Consolidated)(Consolidated)

Total assets on a consolidated Group basis amounted
to ¥10 trillion.

¥32.2

billion%billion year on year, to¥32.2 billion.

Deposit Balance

Balance of Loans(Three Banks)(Three Banks)

Liquid deposits and timeand savings deposits bothrose favorably.

¥6.4

trillion

Capital Ratio(Basel 3)

13.37

Net income rose ¥1.7

(Consolidated)
This represented a year-on-

Principal contributors to theincrease were rises in housing loans and loans toregional government bodies.

Tier 1 Ratio(Basel 3)

12.72

%

year decrease of 0.06 per-(Consolidated)
This ratio was up 0.99
percentage point.

centage point.

Non-Performing
Loan Ratio

1.62%(Three Banks)
Our non-performing loan
ratio improved, dropping by
0.22 percentage point.

Credit Rating

A(Stable)
R&I(YMFG)
Date of rating announcement: August 10, 2015

YMFG Annual Report 20162