Annual Report 2019Year Ended March 31, 2019

Message from the Management
I would like to express my warmest gratitude for yourcontinued support.
The San ju San Financial Group, Inc. was borne out of abusiness merger between Mie Bank, Ltd. and Daisan
Bank, Ltd. on April 2, 2018. We have set forth our
corporate philosophy of “Contributing to creating avibrant future as a ﬁnancial group which is favorable forclients and grows along with the region,” and haveembarked upon our First Medium-term Management
Plan（April 2018 ‒ March 2021）.
This plan positions the three-year plan period as a time
for aspiring to attain the status of a quality regional
ﬁnancial group by laying a robust business foundation
through the prompt realization of the results of themerger and harnessing these to the utmost extent
possible. The vision we have set forth is to aspire to be
the “number one regional ﬁnancial group in terms of
quality” based on the four basic policies of building

Representative Director
and Chairman

Hiroshi Iwama

Representative Director
and President

Mitsunori Watanabe

relations, oﬀering solutions, increasing eﬃciency andoptimization, and establishing a robust business foundation.
The company approved the merger of the two subsidiary banks of Mie Bank and Daisan Bank in January 2019.
Through the close coordination of both banks, we will continue to move ahead with speciﬁc considerations,
responses, and preparations for the merger, which is scheduled for May 2021.
I would like to ask for your continued support and patronage moving forward.
September 2019

Name

“Wish”
contained in thecompany name“San ju San”means that by adding（＋）the respective
strengths of Mie Bank and Daisan Bank, we wish todevelop with the region and contribute to the creationof a vibrant future.

Corporate philosophy

Contributing to creating a vibrant future as a ﬁnancialgroup which is favorable for clients and grows alongwith the region.
Annual Report 2019

2

Logo

Connotations contained within our logo mark
Our logo features two birds based around the motif of the number“33.”These two birds signify Mie
Bank and Daisan Bank, and are also representative of members of the community and San ju San
Financial Group. This image of two birds taking ﬂight into the heavens together depicts both the growthof local communities and San ju San Financial Group, as well as a dynamic future.

Corporate Data
Address of Head Office

510 Kyomachi, Matsusaka, Mie

Address of Headquarters

7-8 Nishishinchi, Yokkaichi, Mie

Capital

MATSUSAKA（Head Oﬃce）
YOKKAICHI（Headquarters）
Mie Prefecture

NAGOYA
Aichi Prefecture

OSAKA

TOKYO

JPY 10 billion

Listing Stock ExchangeTokyo Stock Exchange,
Nagoya Stock Exchange

Board Members
Representative Director and Chairman

Hiroshi Iwama

Representative Director and President

Mitsunori Watanabe

Director

Kenzo Tanikawa

Director

Junji Tanehashi

Director and Executive Oﬃcer

Atsushi Iguchi

Director and Executive Oﬃcer｠

Takahiro Fujita

Director and Executive Oﬃcer

Hiroki Horiuchi

Director and Executive Oﬃcer

Yoshiki Kato

Director（Audit Committee Member）

Yasutaka Sakamoto

Outside Director（Audit Committee Member）

Nobuyoshi Fujiwara

Outside Director（Audit Committee Member）

Akihiko Noro

Outside Director（Audit Committee Member）

Tsuneaki Furukawa

Executive Oﬃcer

Shinji Kataoka

Executive Oﬃcer

Toshiharu Tsujinaka

Executive Oﬃcer

Kazuya Kawase

Executive Oﬃcer

Hisayoshi Hirose

Note 1： Director（Audit Committee Member）Nobuyoshi Fujiwara, Akihiko Noro and Tsuneaki Furukawa areoutside directors as deﬁned under Article （2 xv）of the Companies Act.（As of｠June 21, 2019）

Annual Report 20193

Consolidated Balance Sheets
San ju San Financial Group, Inc. and Consolidated Subsidiaries
Millions of JP Yen
2019AssetsCash and Due from Banks
Call Loans and Bills Bought
Monetary Claims Bought
Trading Account Securities
Money Held in Trust
Securities
Loans and Bills Discounted
Foreign Exchanges
Lease Receivables and Investment Assets
Other Assets
Tangible Fixed Assets
Buildings, Net
Land
Leased Assets, Net
Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareLeased Assets
Other Intangible Fixed Assets
Retirement Benefit AssetDeferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Allowance for Loan Losses

Total Assets

Liabilities

Deposits
Negotiable Certificates of Deposit
Payables under Securities Lending Transactions
Borrowed Money
Foreign Exchanges
Bonds with Share Acquisition Rights
Other Liabilities
Provision for Bonuses
Retirement Benefit Liability
Provision for Retirement Benefits for Directors（and Other Officers）
Provision for Stocks Payment
Provision for Reimbursement of Deposits
Provision for Contingent Loss
Deferred Tax Liabilities
Acceptances and Guarantees

Total Liabilities

Net Assets

Capital Stock
Capital Surplus
Retained Earnings
Treasury Shares

￥

￥
￥

￥
￥

Total Shareholders' Equity

Valuation Difference on Available-for-sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans
Total Accumulated Other Comprehensive Income
Non-Controlling Interests

Total Net Assets
Total Liabilities and Net Assets￥

March 31, 2019
Thousands of US Dollars
2019

265,670
856
2,643
1,313
2,342
985,328
2,709,470
7,174
26,42141,807
26,881
8,457
14,818
3
10
3,591
5,851
5,536
46
268
4,361
504
11,407（21,068）
4,070,967$

3,523,366
80,00233,061
126,138
26
6,989
26,088
1,243
1,574
136
50
410
850
15,283
11,407
3,826,630$

10,00077,985
125,367（325）
213,027
28,807（151）
309
28,965
2,343
244,336
4,070,967

$

$

$

$

2,393,639
7,712
23,812
11,82921,101
8,877,628
24,411,838
64,636238,048376,673
242,192
76,196
133,50727
90
32,35452,71649,878414
2,414
39,291
4,540
102,775（189,818）
36,678,682
31,744,895
720,803297,873
1,136,480
234
62,969235,048
11,19914,181
1,225
450
3,694
7,658
137,697
102,775
34,477,250
90,098702,630
1,129,534（2,928）1,919,335
259,545（1,360）2,784
260,969
21,1102,201,423
36,678,682
Exchange Rate
1US$=¥110.99
Annual Report 20194

Consolidated Statements of Income
and Consolidated Statements of Comprehensive Income
San ju San Financial Group, Inc. and Consolidated Subsidiaries
Millions of JP Yen
2019

Consolidated Statements of Income
Ordinary Income

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
Fees and Commissions
Other Ordinary Income
Other Income
Recoveries of Written Off Claims
Other

￥

Ordinary Expenses

Interest Expenses
Interest on Deposits
Interest on Negotiable Certificates of Deposit
Interest on Payables under Securities Lending Transactions
Interest on Borrowings and Rediscounts
Other Interest Expenses
Fees and Commissions Payments
Other Ordinary Expenses
General and Administrative Expenses
Other Expenses
Provision of Allowance for Loan Losses
Other

Ordinary Profit
Extraordinary Income

Gain on Disposal of Non-Current Assets
Gain on Bargain Purchase

Extraordinary Losses

Loss on Disposal of Non-Current Assets
Impairment Loss

Profit before Income Taxes
Total Income Taxes
Income Taxes - Current
Income Taxes - Deferred

ProfitProfit Attributable to Non-Controlling Interests

Profit Attributable to Owners of Parent￥

Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans, Net of Tax

Comprehensive Income

Comprehensive Income Attributable to Owners of Parent
Comprehensive Income Attributable to Non-Controlling Interests

69,64036,68828,756
7,731
32
116
51
14,378
1,638
16,935
1
16,93361,856
1,423
987
6
14
101
313
4,192
444
38,767
17,0283,460
13,568
7,783
46,38726
46,361
160
25
134
54,011
1,458
2,718（1,260）52,552274
52,277

Millions of JP Yen
2019

Consolidated Statements of Comprehensive Income
ProfitOther Comprehensive Income

Years ended March 31, 2019￥

52,552
1,822
2,156
177
（511）
54,37554,311
64

Thousands of US Dollars
2019
$

$

627,443
330,552
259,086
69,654
288
1,045
459
129,543
14,758
152,5819
152,563557,311
12,820
8,892
54
126
909
2,820
37,7694,000
349,283
153,419
31,173
122,245
70,123417,938
234
417,704
1,441
225
1,207
486,629
13,13624,488（11,352）
473,484
2,468
471,006
Exchange Rate
1US$=¥110.99

Thousands of US Dollars
2019$473,484
16,415
19,425
1,594（4,604）
489,909489,332576
Exchange Rate
1US$=¥110.99

Annual Report 20195

Consolidated Balance Sheets
THE MIE BANK, LTD. and Consolidated Subsidiaries

March 31, 2019 and 2018
Thousands of
US Dollars
2019

Millions of JP Yen
2019
2018

AssetsCash and Due from Banks￥

141,923￥

132,991$

1,278,590

Call Loans and Bills Bought

856

1,593

7,715

Monetary Claims Bought

2,643

2,947

23,815

Trading Account Securities
Securities
Loans and Bills Discounted

81

76

735

427,977

426,575

3,855,652
12,535,717

1,391,464

1,364,201

Foreign Exchanges

2,030

1,818

18,291

Lease Receivables and Investment Assets

14,084

10,638

126,891

Other Assets

31,03829,097

279,624

Tangible Fixed Assets

10,381

10,56893,527

Buildings, Net

5,159

5,234

46,484

Land

3,456

3,503

31,138

10
1,755

－
1,830

15,814

2,868

2,347

25,840

2,683

2,159

24,172

185

187

1,667

4,361

4,393

39,291

Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
Software
Other Intangible Fixed Assets
Retirement Benefit AssetDeferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Allowance for Loan Losses

Total Assets

Liabilities
Deposits

90

390

295

3,513

9,858

7,157

88,812￥（7,639）2,032,320￥（5,101）
1,989,602$（68,822）
18,309,198￥

1,709,619￥

1,671,488$

15,401,978

Negotiable Certificates of Deposit

75,702

88,202682,000

Payables under Securities Lending Transactions

33,061

20,052297,854

Borrowed Money

43,15946,752

388,819

26

58

241

15,833

14,668142,641

Provision for Bonuses

540

564

4,867

Retirement Benefit Liability

130

163

1,179

Provision for Executive Officer Retirement Benefits

85

68

768

Provision for Stocks Payment

23

Provision for Reimbursement of Deposits

196

－
175

1,767

10,629
9,858

10,5297,157

95,76088,812Foreign Exchanges
Other Liabilities

Deferred Tax Liabilities
Acceptances and Guarantees

Total Liabilities

Net Assets

Capital Stock210￥

1,898,866￥

1,859,881$

17,106,901￥

15,295￥

15,295$

137,796

Capital Surplus
Retained Earnings

Total Shareholders' Equity

11,25678,032

11,25675,884

101,414702,996

104,584

102,437

942,207

Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans

27,97826,440252,058

（151）
688

（329）
820

（1,366）
6,201

Total Accumulated Other Comprehensive Income

28,51526,932

256,893

354

351

3,195

133,454
2,032,320

129,720
1,989,602

1,202,296
18,309,198

Non-Controlling Interests

Total Net Assets
Total Liabilities and Net Assets￥￥$
Exchange Rate
1US$=¥110.00

Annual Report 20196

Consolidated Statements of Income
and Consolidated Statements of Comprehensive Income
THE MIE BANK, LTD. and Consolidated Subsidiaries

Millions of JP Yen
2019
2018

Consolidated Statements of Income
Ordinary Income

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
Fees and Commissions
Other Ordinary Income
Other Income
Recoveries of Written Off Claims
Other

￥

Ordinary Expenses

Interest Expenses
Interest on Deposits
Interest on Negotiable Certificates of Deposit
Interest on Payables under Securities Lending Transactions
Interest on Borrowings and Rediscounts
Other Interest Expenses
Fees and Commissions Payments
Other Ordinary Expenses
General and Administrative Expenses
Other Expenses
Provision of Allowance for Loan Losses
Other

Ordinary Profit
Extraordinary Income

Gain on Disposal of Non-Current Assets

Extraordinary Losses

Loss on Disposal of Non-Current Assets
Impairment Loss

Profit before Income Taxes
Total Income Taxes
Income Taxes - Current
Income Taxes - Deferred

ProfitProfit（Loss）Attributable to Non-Controlling Interests

Profit Attributable to Owners of Parent

Years ended March 31, 2019 and 2018￥35,822
17,27813,525
3,616
32
77
25
7,070
1,315
10,1580
10,15830,757
789
427
5
13
45
298
1,590
8
18,749
9,618
2,817
6,800
5,065
1
1
135
5
129
4,931
1,378
2,074
（696）
3,553
（1）
3,554

￥

￥

33,236
17,273
13,768
3,381
24
76
22
6,683
1,492
7,787
0
7,787
27,850
1,062
482
9
17
35
516
1,252
107
18,972
6,456
193
6,262
5,385
1
1
88
19
69
5,298
1,376
1,454
（77）
3,921
45
3,875

（Note 1）Previously, dividends received from the group credit life insurance system, such as mortgages and the like, hadbeen posted to“Other Income.”However, starting from this fiscal year, these have been posted to“Fees and Commissions
Payments”so as to offset insurance premiums paid by this insurance system, and so the figures from the previous fiscal year
have been reclassified.
（Note 2）Previously, profits and losses from the cancellation of investment trusts had been posted as“Other Ordinary
Income”or“Other Ordinary Expenses.”However, starting from this year, this has been posted to“Interest and Dividends on
Securities”found among“Interest Income,”and so the figures from the previous fiscal year have been reclassified.

Millions of JP Yen
2019
2018

Consolidated Statements of Comprehensive Income
ProfitOther Comprehensive Income

Valuation Difference on Available-for-Sale Securities
Deferred Gains or Losses on Hedges
Remeasurements of Defined Benefit Plans, Net of Tax

Comprehensive Income

Comprehensive Income Attributable to Owners of Parent
Comprehensive Income Attributable to Non-Controlling Interests

￥

3,553
1,588
1,543
177
（132）
5,141
5,137
3

￥

3,921
5,684
4,648
333
702
9,606
9,554
51

Thousands of
US Dollars
2019$322,726
155,659
121,851
32,582296
699
229
63,696
11,85391,516
091,515
277,092
7,116
3,849
53
117
408
2,688
14,32778
168,915
86,65525,38561,26945,633
12
12
1,217
49
1,167
44,42912,416
18,687（6,270）32,012（9）32,022$
Exchange Rate
1US$=¥110.00

Thousands of
US Dollars
2019$

32,012
14,30813,904
1,598（1,194）
46,32046,28435
Exchange Rate
1US$=¥110.00

Annual Report 20197

Consolidated Balance Sheets
THE DAISAN BANK, LTD. and Consolidated Subsidiaries

March 31, 2019 and 2018
Thousands of
US Dollars
2019

Millions of JP Yen
2019
2018

AssetsCash and Due from Banks￥

123,710￥

149,404$

1,114,604

Trading Account Securities

1,231

1,205

Money Held in Trust

2,342

2,446

21,101

557,350

568,744

5,021,623
11,831,696

Securities
Loans and Bills Discounted

11,091

1,313,200

1,273,240

Foreign Exchanges

5,139

5,587

46,301Other Assets

22,854

21,896205,910

Tangible Fixed Assets

212,010

23,531

23,523

Buildings, Net

4,612

4,856

41,553Land

17,07917,187

153,878

Leased Assets, Net

3

3

27

－
1,835

1
1,474

－
16,533

2,979

3,203

26,840

2,831

3,034

25,506

Software in Progress

22

28

198

Leased Assets

46

60

414

Other Intangible Fixed Assets

79

80

711

95

58

855

1,549

1,692

13,956

Construction in Progress
Other Tangible Fixed Assets
Intangible Fixed Assets
SoftwareDeferred Tax Assets
Customers' Liabilities for Acceptances and Guarantees
Allowance for Loan Losses

Total Assets

Liabilities
Deposits￥（7,970）2,046,016￥（8,849）2,042,154$（71,808）
18,434,237￥

1,821,530￥

1,805,951$

16,411,658

Negotiable Certificates of Deposit

4,300

3,000

38,742

Borrowed Money

83,674

86,990753,887

－

47

－

－
10,137

6,989
10,932－
91,332

676

704

6,090

8

8

72

Retirement Benefit Liability

1,443

1,640

13,001

Provision for Stocks Payment

27
21

－
23

243

Provision for Retirement Benefits for Directors（and Other Officers）
Provision for Reimbursement of Deposits

214

276

1,928

Foreign Exchanges
Bonds with Share Acquisition Rights
Other Liabilities
Provision for Bonuses
Provision for Directors' Bonuses

Provision for Contingent Loss

189

628

671

5,658

Deferred Tax Liabilities

3,403

3,401

30,660

Deferred Tax Liabilities for Land Revaluation Excess
Acceptances and Guarantees

2,637
1,549

2,660
1,692

23,758
13,956

Total Liabilities

Net Assets

Capital Stock￥

1,930,253￥

1,924,991$

17,391,233￥

37,461￥

37,461$

337,516

Capital Surplus
Retained Earnings

Total Shareholders' Equity

Valuation Difference on Available-for-Sale Securities
Land Revaluation Excess
Remeasurements of Defined Benefit Plans

Total Accumulated Other Comprehensive Income
Non-Controlling interests
Total Net Assets
Total Liabilities and Net Assets￥

32,837
21,90931,64420,065295,855
197,396

92,207

89,171

830,768

18,985
3,622

20,394
3,677

171,051
32,633（1,044）
21,564（780）
23,291（9,406）
194,287

1,990

4,699

17,929115,7632,046,016

117,1622,042,154

1,043,003
18,434,237￥$
Exchange Rate
1US$=¥110.99

Annual Report 20198

Consolidated Statements of Income
and Consolidated Statements of Comprehensive Income
THE DAISAN BANK, LTD. and Consolidated Subsidiaries

Thousands of
US Dollars
2019

Millions of JP Yen
2019
2018

Consolidated Statements of Income
Ordinary Income

Years ended March 31, 2019 and 2018￥

Interest Income

37,452
21,647￥

37,141
22,694$

337,435
195,035

Interest on Loans and Discounts

15,234

16,104

137,255

Interest and Dividends on Securities

6,348

6,518

57,194

Interest on Deposits with Banks

38

39

342

Other Interest Income

25

31

225

Fees and Commissions

7,317

6,491

65,924

Other Ordinary Income

1,042

159

9,388

Other Income

7,444

7,796

67,069

1
7,443

3
7,793

9
67,060Ordinary Expenses

31,752637

31,692823

286,0795,739Interest on Deposits

Recoveries of Written Off Claims
Other
Interest Expenses

560

738

5,045

Interest on Negotiable Certificates of Deposit

0

0

0

Interest on Payables under Securities Lending Transactions

1

2

9

Interest on Borrowings and Rediscounts

59

65

531

Other Interest Expenses
Fees and Commissions Payments
Other Ordinary Expenses

15

16

135

2,603

2,528

23,452

428

65

3,856

General and Administrative Expenses

20,394

21,075

183,746

Other Expenses

7,688

7,200

69,267

699
6,988

1,501
5,698

6,297
62,960

5,700

5,449

51,355

5
5

162
0
162

45
45

Provision of Allowance for Loan Losses
Other

Ordinary Profit
Extraordinary Income

Gain on Disposal of Non-Current Assets
Gain on Reversal of Share Acquisition Rights
Loss on Disposal of Non-Current Assets

－
73
20

Impairment Loss

53

396

477

－
5,631

172
5,018

－
50,734

895
627
268

825
688
137

8,063
5,649
2,414

Profit

4,736

4,192

42,670

Profit Attributable to Owners of Parent

445
4,290

65
4,127

4,009
38,652Extraordinary Losses

Other Extraordinary Losses

Profit before Income Taxes
Total Income Taxes
Income Taxes - Current
Income Taxes - Deferred

Profit Attributable to Non-Controlling Interests￥

Valuation Difference on Available-for-Sale Securities
Remeasurements of Defined Benefit Plans, Net of Tax

Comprehensive Income

Comprehensive Income Attributable to Owners of Parent
Comprehensive Income Attributable to Non-Controlling Interests

－
657
180

Millions of JP Yen
2019
2018

Consolidated Statements of Comprehensive Income
ProfitOther Comprehensive Income

￥

593
24

￥

4,736

￥

4,192

$
Exchange Rate
1US$=¥110.99
Thousands of
US Dollars
2019$42,670（1,890）

1,922（17,028）（1,626）
（263）
2,845
2,618
227

1,802
119

（14,649）（2,369）25,632
23,587
2,045
Exchange Rate
1US$=¥110.99

6,114
5,845
269

Annual Report 20199

San ju San Financial Group, Inc.
Head Office : 510 Kyomachi, Matsusaka, Mie,515-8530,Japan
TEL : +81-598-21-3303
Headquarters : 7-8 Nishishinchi, Yokkaichi, Mie,510-0087,Japan
TEL : +81-59-357-3355
URL : https://www.33fg.co.jp

THE MIE BANK,LTD.

7-8 Nishishinchi, Yokkaichi, Mie,510-0087,Japan
TEL : +81-59-353-3111
URL : https://www.miebank.co.jp
E-mail : kikaku@miebank.co.jp/

THE DAISAN BANK,LTD.
510 Kyomachi, Matsusaka, Mie,515-8530,Japan
TEL : +81-598-25-0377
URL : https://www.daisanbank.co.jp
E-mail : kokusai@daisanbank.co.jp/