Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2017
(Based on Japanese GAAP)May 12, 2017
Company name:

The Musashino Bank, Ltd.

Stock exchange listing: Tokyo
Stock code:
8336
Representative:
Inquiries:

URL

http://www.musashinobank.co.jp

President
Executive Officer and General Manager ofKikuo Kato

Susumu Kurosawa
General Planning and Management Division
Scheduled date of ordinary general meeting of shareholders:June 28, 2017
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 28, 2017
June 29, 2017

Trading accounts:
Preparation of supplementary material on financial results:

No
Yes

Holding of financial results meeting:

Yes

TEL

048-641-6111(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2017 (from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 201770,903(4.6)
12,887(31.3)
9,762(22.2)
Year ended March 31, 2016
74,334(2.2)
18,772(3.9)
12,563(13.1)
Profit attributable toOrdinary profit/total
owners ofassetsparent/equity
Yen%%
291.124.2
0.2
374.395.5
0.4

Diluted earnings per
share

Earnings per shareYen
291.35374.65

Year ended March 31, 2017
Year ended March 31, 2016

Ordinary
profit/ordinary
income%18.1
25.2(2) Consolidated financial position
Total assets
As of March 31, 2017
As of March 31, 2016

Net assets

Equity ratio

Millions of yen
4,507,139
4,328,909

Millions of yen
233,974
229,078

Cash flows fromoperating activities
Millions of yen
107,440
9,219

Cash flows frominvesting activities
Millions of yen(28,933)(31,892)

Net assets per share
%
5.1
5.2

Yen
6,976.35
6,794.31(3) Consolidated cash flows

Year ended March 31, 2017
Year ended March 31, 2016

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(16,513)
210,826(2,694)
148,831

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2016
Year ended March 31, 2017
Year ending March 31, 2018
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

40.00
40.00

–
–

50.00
40.00

90.00
80.00

3,018
2,682

24.0
27.4

1.3
1.1

–

40.00

–

40.00

80.00

1

25.2

3. Forecast of consolidated financial results for the year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
September 30, 2017
Full year

35,600

(0.4)

7,600

2.3

5,200

(14.9)

155.2571,5000.8

15,20017.9

10,6008.5

316.48

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 201733,805,456 shares As of March 31, 2016

33,805,456 shares

Number of treasury shares at the end of the period
As of March 31, 2017

311,831 shares As of March 31, 2016

270,428 shares

33,509,899 shares Year ended March 31, 201633,535,584 shares

Average number of shares during the period
Year ended March 31, 20172

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2016

As of March 31, 2017

AssetsCash and due from banks

149,402211,372

Monetary claims bought
Trading account securities

11,553
495

8,626
621

Money held in trust
Securities

1,490
764,664

1,500
781,884

3,319,167
2,315

3,412,133
3,858

Lease receivables and investment assets
Other assets

19,12521,071

19,18929,467

Tangible fixed assets
Buildings, net

37,584
10,33237,398
10,126Land
Construction in progress

25,146–25,300133

Other tangible fixed assets
Intangible fixed assets

2,105
3,176

1,836
3,050

2,997
178

2,875
175

5,173
1,233

5,843
1,050

7,730
(15,273)

6,516(15,375)

4,328,909

4,507,139

3,845,034

3,938,291

Negotiable certificates of deposit
Call money and bills sold155,827–

188,765
24,706

Payables under securities lending transactions
Borrowed money

7,257
18,494

46,434
17,152Foreign exchanges
Bonds payable336
25,000162
15,000

Other liabilities
Provision for bonuses

23,4901,253

20,7101,251

Provision for directors' bonuses
Net defined benefit liability

10
4,363

10
4,120

Provision for loss on interest repayment
Provision for reimbursement of deposits

57
539

42
754

Provision for point card certificates
Provision for contingent loss

68
412

76
311

Provision for share-based compensation
Deferred tax liabilities

–
5,727

14
4,616

Deferred tax liabilities for land revaluation
Acceptances and guarantees

4,227
7,730

4,227
6,516

4,099,830

4,273,164

Loans and bills discounted
Foreign exchanges

Software
Other intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits

Total liabilities

3

(Millions of yen)
As of March 31, 2016

As of March 31, 2017

Net assets
Capital stock
Capital surplus

45,74338,35145,74338,290Retained earnings
Treasury shares

113,922(804)

120,667(907)

Total shareholders' equity

197,213203,793

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

27,116(2,056)

24,813(1,399)

Revaluation reserve for landRemeasurements of defined benefit plans

8,286(2,712)

8,286(1,831)

Total accumulated other comprehensive income

30,63329,869Subscription rights to shares
Non-controlling interests

74
1,157

80
230

229,078

233,974

4,328,909

4,507,139

Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2016
Ordinary income

Fiscal year ended
March 31, 201774,33470,90346,506
38,41643,33135,496

7,776
43

7,600
(15)

17
252

0
249

Fees and commissions
Other ordinary income

12,4782,497

12,826
1,487

Other income
Recoveries of written off claims

12,851457

13,257
1,022

12,39355,561

12,23458,015

2,921
1,660

2,132
830

Interest on negotiable certificates of deposit
Interest on call money and bills sold

140
5

45
218

Interest on payables under securities lending transactions
Interest on borrowings and rediscounts

22
161

143
123

Interest on bonds
Other interest expenses

221
706

133
636

Fees and commissions payments
Other ordinary expenses

3,926
1,337

3,874
851

General and administrative expenses
Other expenses

36,206
11,16936,851
14,306

1,495
9,674

4,239
10,066

Ordinary profit

18,772

12,887Extraordinary income
Gain on disposal of non-current assets

1,345
0

–
–

Gain on revision of retirement benefit plan
Extraordinary losses

1,345
23

–
6

Loss on disposal of non-current assets
Other

23
–

5
1

Profit before income taxes

20,095

12,881

Income taxes - current
Income taxes - deferred

5,332
2,103

3,571
(354)

Total income taxes

7,436

3,216

Profit12,658

9,664

94

(98)

12,563

9,762

Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income

Other
Ordinary expenses
Interest expenses
Interest on deposits

Provision of allowance for loan losses
Other

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 201712,658(10,287)

9,664
(762)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(5,857)(866)(2,301)
657

Revaluation reserve for landRemeasurements of defined benefit plans, net of tax

222(3,785)–881

Comprehensive income

2,371

8,902

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,275

8,998

96

(96)

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2016
(Millions of yen)
Shareholders' equity
Capitalstock
Balance at beginningof current period

Capitalsurplus45,743Retainedearnings

38,351

Treasuryshares104,042

(802)

Total
shareholders'equity187,334

Changes of items
during period
Dividends ofsurplusProfit attributableto owners of parent(2,682)(2,682)

12,563

12,563Purchase oftreasury shares
Disposal oftreasury shares(0)

Transfer to capitalsurplus from

0

(11)

(11)

9

8

(0)

–

retained earnings
Purchase of shareof consolidated–

subsidiaries
treasury stock–

Net changes of
items other thanshareholders'equityTotal changes of
items during period
Balance at end ofcurrent period

–

–

9,880

(1)

9,878

45,74338,351

113,922(804)

197,2137

Accumulated other comprehensive income

Balance at beginningof current period

Valuationdifference

Deferredonavailable-

gains orlosses on

for-salesecurities

hedges32,976(1,190)Total

Revaluation Remeasurements accumulated
reserve forland

of definedotherbenefit planscomprehensive

rights to

Noncontrollingsharesinterests

Subscription

Total net
assetsincome

8,064

1,073

40,922

58

1,061

229,377

Changes of items
during period
Dividends of(2,682)

surplusProfit attributableto owners of parent

12,563Purchase oftreasury shares(11)

Disposal of8treasury shares
Transfer to capitalsurplus fromretained earnings–

Purchase of shareof consolidated
subsidiaries–

treasury stock
Net changes of
items other thanshareholders'(5,859)

(866)

222

(3,785)(10,288)

16

95(10,177)

Total changes of
items during period(5,859)

(866)

222

(3,785)(10,288)

16

95

(298)

Balance at end ofcurrent period

27,116(2,056)

8,286(2,712)

30,633

74

1,157

229,078

equity8

Fiscal year ended March 31, 2017
(Millions of yen)
Shareholders' equity

Balance at beginningof current period

CapitalCapitalRetained

Treasurystock

surplusearnings

shares45,74338,351

113,922

Total
shareholders'equity(804)

197,213

Changes of items
during period
Dividends ofsurplusProfit attributableto owners of parent(3,018)(3,018)

9,762

9,762

Purchase oftreasury shares
Disposal of0treasury shares

(104)

(104)

0

0

Transfer to capitalsurplus fromretained earnings

–

–

–

Purchase of shareof consolidated
subsidiaries

(60)

(60)

treasury stock
Net changes of
items other thanshareholders'equityTotal changes of
items during period
Balance at end ofcurrent period

–

(60)

6,744

(103)

6,580

45,74338,290120,667(907)

203,7939Accumulated other comprehensive income

Balance at beginningof current period

Valuationdifference

Deferredonavailable-

gains orlosses on

for-salesecurities

hedges27,116(2,056)

Total

Revaluation Remeasurements accumulated
reserve forland

of definedotherbenefit planscomprehensive

rights to

Noncontrollingsharesinterests

Subscription

Total net
assetsincome8,286(2,712)

30,633

74

1,157

229,078

Changes of items
during period
Dividends of(3,018)surplusProfit attributableto owners of parent

9,762

Purchase oftreasury shares(104)

Disposal of0treasury shares
Transfer to capitalsurplus fromretained earnings–

Purchase of shareof consolidated
subsidiaries(60)

treasury stock
Net changes of
items other thanshareholders'(2,303)

657

–

881

(764)

6

(926)

(1,684)

Total changes of
items during period(2,303)

657

–

881

(764)

6

(926)

4,895

Balance at end ofcurrent period

24,813(1,399)8,286(1,831)

29,86980

230

233,974

equity10Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017
20,095

12,881

2,634

2,617

–

(28)

(648)

101

24
(0)

(1)
(0)

(416)
(1,769)

(356)
(252)

Increase (decrease) in provision for loss on interest repayment
Increase (decrease) in provision for reimbursement of deposits

(28)
64

(14)
214

Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for contingent loss

0
(123)

7
(101)

Increase (decrease) in provision for share-based compensation
Gain on fund management–(46,506)14(43,331)

Financing expenses
Loss (gain) related to securities

2,921(1,673)

2,132
(985)

Loss (gain) on money held in trust
Foreign exchange losses (gains)

7
3,563

(1)
114

Loss (gain) on disposal of non-current assets
Net decrease (increase) in trading account securities

22
(357)

5
(126)

Net decrease (increase) in loans and bills discounted
Net increase (decrease) in deposit(108,561)
13,658(92,966)
93,25656,91932,938

7,257

39,177907

1,157

21,913

24

5,060

2,926

Net increase (decrease) in call money
Net decrease (increase) in foreign exchanges - assets

–
(310)

24,706(1,543)

Net increase (decrease) in foreign exchanges - liabilities
Proceeds from fund management(6)47,318(174)
44,157

Payments for finance
Other, net(3,048)(3,798)(2,417)(1,602)

Subtotal

15,120112,532

Income taxes paid

(5,901)(5,091)

Net cash provided by (used in) operating activities

9,219

107,440

Depreciation
Share of (profit) loss of entities accounted for using equity
methodIncrease (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability

Net increase (decrease) in negotiable certificates of deposit
Net increase (decrease) in payables under securities lendingtransactions
Net increase (decrease) in borrowed money (excluding
subordinated borrowings)
Net decrease (increase) in deposit (excluding deposit paid toBank of Japan)
Net decrease (increase) in call loans

11(Millions of yen)

Cash flows from investing activities
Purchase of securities

Fiscal year ended

Fiscal year ended

March 31, 2016

March 31, 2017

(226,673)(171,083)

89,658108,437

30,192
114,236

–
0

(9)
–

Purchase of tangible fixed assets
Proceeds from sales of property, plant and equipment(1,918)0(1,214)–Purchase of intangible assets
Payments for asset retirement obligations(1,379)(17)(1,040)(13)

Net cash provided by (used in) investing activities(31,892)(28,933)

Proceeds from sales of securities
Proceeds from redemption of securities
Increase in money held in trust
Decrease in money held in trust

Cash flows from financing activities
Decrease in subordinated borrowings–(2,500)–(2,682)(10,000)(3,018)Dividends paid to non-controlling interests
Purchase of treasury shares

(0)
(11)

(0)
(104)

Purchase of treasury shares of subsidiaries
Proceeds from sales of treasury shares

–
–

(890)
0

Redemption of subordinated bonds
Cash dividends paid

(2,694)(16,513)

Net increase (decrease) in cash and cash equivalents

Net cash provided by (used in) financing activities(25,368)

61,994

Cash and cash equivalents at beginning of period

174,200

148,831

Cash and cash equivalents at end of period

148,831

210,826

12