The Year in Review

The Wakayama Bank, Ltd.

Deposits
During the period under review, deposits on a consolidated basis declined ¥36.0 billion to ¥372.1 billion at the fiscal year-end, mainly due to switching customers of some of their funds into assets under custody, particularly investment trusts and individual pension insurance products.

Loans and Bills Discounted
The balance of loans and bills discounted fell ¥44.3 billion to ¥266.9 billion at the fiscal year-end.

Securities
The balance of securities holdings decreased ¥8.4 billion to ¥43.8 billion during the period under review.

Cash Flows
Net cash used in operating activities amounted to ¥18.5 billion, chiefly reflecting a fall in the balance of deposits. Net cash provided by investing activities totaled ¥13.1 billion, due chiefly to proceeds from the sale of securities. Net cash provided by financing activities totaled ¥13.7 billion, due chiefly to proceeds from the issue of shares and the taking of subordinated loans. As a result, cash and cash equivalents increased ¥8.3 billion during the period to ¥22.3 billion.

Capital Ratio
The capital ratio (domestic standards, consolidated basis) stood at 9.01%, due to cash infusions of ¥9.0 billion from a private placement to Kiyo Holdings, Inc. and ¥5.0 billion in subordinated loans from Kiyo Holdings, which more than offset the posting of a net loss of ¥12.3 billion. On a non-consolidated basis (domestic standards), the capital ratio rose 2.02 percentage points to 8.90%.

Earnings
Total income rose ¥0.3 billion year-on-year to ¥12.1 billion. Total expenses rose ¥11.6 billion year-on-year to ¥22.2 billion, due mainly to the disposal of non-performing loans and increases in other expenses. As a result of the above, loss before income taxes and minority interests came to ¥10.0 billion, and a net loss was posted totaling ¥12.3 billion on a consolidated basis.