The Year in Review

The Kiyo Bank, Ltd.

Deposits
During the period under review, deposits edged up ¥1.1 billion to a fiscal year-end balance of ¥2,583.2 billion on a consolidated basis. A steady increase was seen in both corporate deposits and individual deposits, largely thanks to a campaign featuring the 110th anniversary time deposits for individuals. Nevertheless, due to a decline in public authority deposits reflecting regional financial policy, growth in deposits as a whole was only ¥1.1 billion.

Loans and Bills Discounted
The balance of loans and bills discounted rose ¥18.1 billion by the end of the period, to ¥1,774.7 billion. In addition to continued strength in housing loans, business loans emerged from a period in the doldrums and performed well in the second half, as we succeeded in attracting new corporate borrowers, particularly in Osaka Prefecture, and in stimulating new funding demand by all branches.

Securities
The balance of securities holdings increased ¥48.4 billion during the period to ¥773.5 billion.

Cash Flows
Net cash provided by operating activities amounted to ¥65.2 billion, the result chiefly of short-term transactions in financial markets. Net cash used in investing activities came to ¥19.7 billion, reflecting a fall in revenues due to redemption of securities. Net cash provided by financing activities totaled ¥7.5 billion, due chiefly to inflows from issues of shares. As a result, cash and cash equivalents at the fiscal year-end stood at ¥104.6 billion, an increase of ¥53.1 billion.

Capital Ratio
The capital ratio (domestic standards) fell 0.51 percentage point year-on-year to 8.60% on a consolidated basis and declined 0.42 percentage point to 8.59% on a non-consolidated basis. An ¥8.0 billion increase in capital from the issue of preferred shares allocated by private placement to Kiyo Holdings, Inc. was more than offset by the repayment of public funding made by Wakayama Bank (the purchase of Wakayama Bank’s preferred stock from the Deposit Insurance Corporation of Japan). As a result, the capital ratio was deflated.

Earnings
Total income rose ¥11.6 billion year-on-year to ¥84.4 billion, due chiefly to gains on the settlement of trust fund operations for employees’ retirement benefits. Total expenses rose ¥8.2 billion to ¥72.5 billion, due chiefly to increases in other expenses and the recording of impairment losses.
    As a result of the above, income before income taxes and minority interests came to ¥11.9 billion and net income totaled ¥4.0 billion on a consolidated basis.