YMFG PROFILE (As of July 31, 2015)

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: 134 (109 head office and branch offices, 25 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: 34 (33 head office and branch offices, 1 sub-branch office) YM Securities
Networks in Japan: 18 offices

Contents
YMFG Profile .........................................................................1

Overseas Networks ..............................................................13

Message from the President ...................................................3

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

Goals, Strategies and Achievements .......................................5Internal Audits and Compliance System ...............................15

YMFG Medium-Term Management Plan 2013 .......................7

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

Performance Highlights (YMFG) .............................................9Contributions to the Community and the Environment ........17

Performance Highlights (Three Banks) ..................................11

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

Economies and Industries of Yamaguchi Prefecture,Hiroshima Prefecture, and Kitakyushu City (Reference) .........12Disclaimer 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.

1YMFG Annual Report 2015

YMFG Financial Highlights (For the fiscal year ended March 31, 2015)¥10Total Assets

Net Income(Consolidated)(Consolidated)

We reached total assets of¥10 trillion, a goal we havetrillion¥9

had since our establishment.

billion year on year, tobillion

Balance of Loans(Three Banks)(Three Banks)and savings deposits bothrose favorably.

¥6Principal contributors to theincrease were rises in hous-trillion

Capital Ratio(Basel 3)

13.43%¥30.5 billion.

Deposit Balance

Liquid deposits and time

trillion¥30

Net income was down ¥0.7

(Consolidated)
This represented a year-on-

ing loans and loans toregional government bodies.

Tier 1 Ratio(Basel 3)

11.73

%

year increase of 0.74 per-(Consolidated)
This ratio was up 0.63
percentage point.

centage point.

Non-Performing
Loan Ratio

1.84%(Three Banks)
Our non-performing loanratio improved substantially,dropping by 0.47 percent-Credit Rating

A(Stable)
R&I(YMFG)
Date of rating announcement: June 30, 2014

age point.

YMFG Annual Report 20152