| 1. |
Significant Accounting Policies |
| |
(1) |
Principles of Consolidation
The accompanying consolidated financial statements include
the accounts of the Bank and its subsidiary and associated
companies under the equity method which are as follows:
(Subsidiary)
The Saikyo Business Service Co., Ltd.
(Associated Companies)
The Saikyo Lease Co., Ltd.
The Saikyo Million Card Co., Ltd. |
| |
(2) |
The settlement day of the
consolidated subsidiary is March 31. |
| |
(3) |
Items about the Accounting
Standards |
| |
|
1) |
Evaluation Standards of Trading Account
Securities
Evaluation of listed trading account securities on securities
exchange is based on the lower of cost or market method
by applying the moving-average. For non-listed trading
securities, the evaluation is based on the cost. |
| |
|
2) |
Evaluation Standards of Securities
The securities are evaluated based on the cost by applying
the moving-average method. Securities applied as a trust
property in money trusting essentially for the purpose
of operating securities independently are evaluated based
on the lower of cost or market method, as concerns convertible
bonds and shares subject to stock exchange in the market,
and based on the cost for the remainder, both by applying
the moving-average. |
| |
|
3) |
Depreciation of Properties
Depreciation of buildings is based on the declining balance
method, using fixed rates under the tax law. The buildings
acquired after April 1,1998, however, are evaluated based
on the straight-line method, using the fixed rates under
the tax law.
The personal properties are depreciated based on the declining
balance method, using the fixed rates under the tax law,
and others are as determined by the tax law. |
| |
|
4) |
Reserve Standard for Possible Loan Losses
The reserve for possible loan losses is evaluated on the
predetermined depreciation and reserve standard as follows.
Those loans corresponding to sound and cautioning debtor
are classified by certain types and evaluated as per the
rate of respective loan losses calculated from the actual
bad debts for a certain period of time in the past.
For the loans corresponding to the debtors anticipated
to encounter a business breakdown, the amount to be recoverable
from the collateral and surety is deducted from the loans
amount, and then out of the balance only necessary amount
is stated as reserve.
For the loans corresponding to the breakdown and very
likely breakdown debtors, the balance, after the amount
to be disposable from the collateral and that to be recoverable
from the surety are both deducted from the loan amount,
is accounted as reserve.
All loans for the above reserves are based on the results
of assessment performed in accordance with the self-assessment
standard of assets.
No reserve for possible loan losses of subsidiary is evaluated. |
| |
|
5) |
Reserve for Retirement Benefits
The reserve for retirement benefits is stated as amount
that would be required, should all employees be retired
for own reasons as of the date of the balance sheet.
In addition to the above, the bank has a funded pension
plan.
No reserve for retirement benefits of subsidiary is stated.
|
| |
|
6) |
Foreign Currency Translation
Assets and liabilities which are payable and receivable
in foreign currencies are translated into Japanese yen
at the rate prevailing at each balance sheet date. |
| |
|
7) |
Finance Leases
Finance leases of the bank and consolidated subsidiary
which may be considered not transferable to the owners
are accounted in the same way as the operating leases
under the accounting principles generally accepted in
Japan. |
| |
|
8) |
Consumption Taxes
Consumption taxes are excluded from the financial statements
for the bank and its subsidiary. |
| |
(4) |
Assets and Liabilities of
Subsidiary
Assets and Liabilities of subsidiary are evaluated by
the wholly market value method. |
| |
(5) |
Retained Earnings
Statements of retained earnings is stated as amount under
the appropriation of profit, which is settled during the
consolidated accounting year. |
| |
(6) |
Statement of Cash Flows
Cash and cash equivalents in the statements of cash flows
represent cash on hand and deposits with The Bank of Japan
among "cash and due from banks" in the consolidated balance
sheets. |
| |
(7) |
Translation to U.S. Dollars
For convenience only, the amounts of U.S. dollar presented
in the following financial statements are translated
from those of Japanese yen at the rate of \106.15 to
US$1, the exchange rate prevailing on March 31,2000.
All yen figures are rounded down to the nearest one
million yen and U.S. dollar figures are rounded down
to the nearest one thousand U.S. dollar. Therefore,
the total amounts in each columns may not add up to
the totals.
(Additional Information)
Due to a recent revision to the Enforcement Regulations
of the Banking Law, the reserve for possible loan losses,
which were previously included in liabilities, is presented
as a deduction from assets as separate line item at
this period. As a result, total assets and liabilities
each decreased by \12,210million.
|
| 2. |
Note to Consolidated Balance
Sheets |
| |
(1) |
Securities held by the bank
at March 31,2000 include shares of associated companies
amounting \17million. |
| |
(2) |
Loans to customer in bankruptcy
proceedings at the end of term amounted to ￥12,360million,
and non-accrual delinquent loans amounted to \9,397million.
Loans to customer in bankruptcy proceedings are loans
for which circumstances apply as stated in the Implementation
Ordinances for the corporation Tax Law (Government Ordinance
No.97, 1965) among non-accrual loans (excluding loans
written off) for which there are no prospects for recovery
or repayment of principal or interest for which payment
of principal or interest has not been received for a substantial
period or for other reasons.
Non-accrual delinquent loans are those loans other than
loans to customer in bankruptcy proceedings and other
than loans for which interest payments have been rescheduled
with the objective of assisting these borrowers in business
restructuring. |
| |
(3) |
Loans past due for three
months or more at the end of term amounted to \195million.
Loans past due for three months or more are those loans
for which payments of principal or interest have not been
received for a period of three months or more beginning
with the next business day following the last due date
for such payments, and are not included in loans to customer
in bankruptcy proceedings or non-accrual delinquent loans.
|
| |
(4) |
Restructured loans under
the revised uniform rules at end of term amounted to \7,615million.
Restructured loans under the revised uniform rules are
those loans for which the bank has provided more favorable
terms and conditions - including reducing interest rates,
rescheduling interest and principal payment, or the waiving
of claim on the borrower - to the borrower than those
in the original loan agreement, with the aim of providing
restructuring assistance and support. Such loans exclude
loans to customer in bankruptcy proceedings, non-accrual
delinquent loans and loans past due for three months or
more. |
| |
(5) |
Total of Risk Management
Credits at the end of the term amounted to \29,568million.
The amounts mentioned above item no.2 to 5 are those which
is before deducting reserve for possible loan losses. |
| |
(6) |
Assets Pledged as collateral
and liabilities related to the pledges assets as of March
31, 2000 are as follows:
| |
Millions of yen
|
| Assets pledged as collateral |
|
|
Securities
|
\597
|
|
Due from Banks
|
17
|
| Liabilities related to the above pledged
assets |
|
|
Deposits
|
\3,106
|
In addition, \13,224million of securities
and \150million of due from banks are pledged as collateral
for settlement of exchange and margin money for futures.
And \3,707million of securities are pledged as collateral
for borrowed money of associated companies and others.
|
| |
(7) |
The land used in the ordinary
course of business is revaluated as of March 31, 1998
in accordance with The Revaluation Act of Land Properties
(Law No.34, 1998). The difference between current and
previous evaluations are stated that due to tax of them
is accounted as "Deferred Income Tax Liabilities for Revaluation
Excess" and grouped into the liabilities, and the balance
deducted by that amount is stated as "Revaluation Excess"
and grouped into the capital.
Revaluation method in accordance with Art.3-3, of Law
34:
Revaluation are made based on the method that forms the
basis for calculating land value taxes as set out in Art.2-4
of Ordinance Implementing the Law Concerning Land Revaluation
(Government Ordinance No.119, 1998) with appropriate adjustments.
The difference between the total running prices of lands
by revaluation at the end of the term and the total book
values after revaluation of relevant lands for business
is \839million. |
| |
(8) |
Accumulated depreciation as of March
31, 2000 is \6,866million.
|
| 3. |
Note to Consolidated Statements
of Income and Retained Earnings |
| |
(1) |
Other expenses for the year
ended March 31,2000 include \38million losses on sale
of loans to The Resolution and Collection Co., Ltd. |
| |
(2) |
Other income for the year
ended March 31, 2000 include \29million Profits on sale
of land. |
| |
(3) |
Other expenses for the year ended March
31, 2000 include \43million losses as retirement benefits
to directors.
|
| 4. |
Note to Consolidated Statements
of Cash Flows
As of March 31, 2000, the linkage between "cash and cash
equivalents" and "cash and due from banks" stated in the
consolidated balance sheets is as follows:
|
| |
|
| |
Millions of yen
|
| Cash and due from banks |
\61,253
|
| Time deposits |
△498
|
| Ordinary deposits |
△19,113
|
| Foreign deposits |
△12,916
|
| Certificate of deposits |
△3,000
|
| Others |
△86
|
| Cash and cash equivarents |
\25,639
|
|
| 5. |
Note to Finance Leases
Pro forma information of leased property such as acquisition
cost, accumulated depreciation, obligation under finance
leases, depreciation expense, interest expense of finance
leases that do not transfer ownership of leased property
to the lessee on an "as if capitalized" basis for the
year ended March 31, 2000 are as follows:
|
| |
|
| |
Millions of yen
|
| |
Equipment
|
Others
|
Total
|
| |
|
Acquisition costs
|
\1,507
|
\45
|
\1,553
|
| Accumulated depreciation |
723
|
31
|
754
|
| |
|
| Net leased property |
\784
|
\13
|
\798
|
| |
|
| |
Millions of yen
|
Obligations under finance leases:
|
|
| Due within one year |
\285
|
| Due after one year |
567
|
| Total |
\852
|
| |
Millions of yen
|
| Payment of finance leases |
\405
|
| Depreciation expenses |
329
|
| Imputed interest expense portion |
86
|
The lease period is set at the useful
life of the properties and the straight-line method
of depreciation is used to compute the remaining value
of the properties.
The amount corresponding to interest costs is the difference
between total lease fees to be paid and the amount corresponding
to acquisition costs of the properties. The interest
method is used to allocate the amounts to applicable
fiscal years.
|
| 6. |
Market Value Information
for Securities |
| |
(1) |
At March 31, 1999 and 2000,
book value, market value and net unrealized gains of trading
account securities and securities both listed on stock
exchange are as follows:
| |
Millions of yen
|
| |
1999
|
2000
|
| |
|
| Book value |
|
|
| Trading account securities |
|
|
| Bonds |
\4
|
\4
|
| Securities |
|
|
| Bonds |
13,425
|
9,054
|
| Corporate stock |
8,489
|
10,403
|
| Others |
2,075
|
1,821
|
| Sub-total |
23,989
|
21,279
|
| |
|
| Total |
\23,994
|
\21,283
|
| |
|
| Market value |
|
|
| Trading account securities |
|
|
| Bonds |
\4
|
\4
|
| Securities |
|
|
| Bonds |
13,516
|
9,112
|
| Corporate stock |
6,949
|
8,711
|
| Others |
1,950
|
1,689
|
| Sub-total |
22,415
|
19,513
|
| |
|
| Total |
\22,420
|
\19,517
|
| |
|
| |
|
|
| Net unrealized gain |
\△1,573
|
\△1,765
|
| |
|
|
| |
(2) |
At March 31, 1999 and 2000,
book value, approximate market value and net unrealized
gains of trading account securities and securities both
unlisted are as follows:
| |
Millions of yen
|
| |
1999
|
2000
|
| |
|
| Book value |
|
|
| Trading account securities |
|
|
| Bonds |
\155
|
\83
|
| Securities |
|
|
| Bonds |
12,228
|
14,925
|
| Corporate stock |
30
|
30
|
| Others |
6,379
|
11,317
|
| Sub-total |
18,637
|
26,273
|
| |
|
| Total |
\18,793
|
\26,356
|
| |
|
| Market value |
|
|
| Trading account securities |
|
|
| Bonds |
\155
|
\83
|
| Securities |
|
|
| Bonds |
12,471
|
15,156
|
| Corporate stock |
30
|
32
|
| Others |
2,654
|
8,994
|
| Sub-total |
15,156
|
24,183
|
| |
|
| Total |
\15,312
|
\24,266
|
| |
|
| |
|
|
| Net unrealized gain |
\△3,481
|
\△2,090
|
| |
|
|
| |
(3) |
At March 31, 1999 and 2000,
book value of trading account securities and securities
excluded from the above market value information are as
follows:
| |
Millions of yen
|
| |
1999
|
2000
|
| |
|
| Book value |
|
|
| Trading account securities |
|
|
| Unlisted bonds public offering due in
less than one year |
\54
|
\106
|
| Securities |
|
|
| Unlisted domestic bonds other than pablic
offering |
11,895
|
10,973
|
| Unlisted bonds public offering due in
less than one year |
1,736
|
7,123
|
| Unlisted bonds other than domestic issues |
555
|
3,400
|
| Unlisted corporate stock |
1,332
|
1,743
|
| stock of associated companies |
16
|
42
|
| Local government bonds and debentures |
2,341
|
2,282
|
|
| 7. |
Market Value Information
for Funds in Trust
At March 31, 1999 and 2000, book
value and market value of funds in trust are as follows:
|
| |
|
| |
Millions of yen
|
| |
1999
|
2000
|
| |
|
| Book value |
|
|
| Funds in trust |
\4,983
|
\7,953
|
| |
|
|
| Market value |
|
|
| Funds in trust |
\5,053
|
\7,985
|
| |
|
|
| Net unrealized gain |
\69
|
\31
|
| |
|
|
| 8. |
Derivatives
Financial derivatives with credit
risk of the bank as of March 31,2000 as follows:
|
| |
|
| |
Millions of yen
|
| |
1999
|
2000
|
| |
|
|
| |
Notional
|
Credit-risk
|
Notional
|
Credit-risk
|
| |
amounts
|
equivarents
|
amounts
|
equivarents
|
| |
|
|
| |
|
|
|
|
| Interest rate and currency swaps. |
\18,428
|
\213
|
\15,636
|
\202
|
| Foreign exchande contracts |
58,452
|
1,218
|
41,305
|
666
|
| |
|
|
| Total |
\76,881
|
\1,432
|
\56,941
|
\869
|
| |
|
|
|
| |
(1) |
The credit risk equivalents amount of off-balance-sheet
transactions is calculated using the current exposure
method regarding interest rate and currency swaps and
foreign exchange contracts. |
| |
(2) |
Foregin exchange contracts and purchased
options with original contract terms of 14days or less
are excluded from the previous table as of March 31,2000
are as follows:
| |
Millions of yen
|
| |
1999
|
2000
|
| |
Notional
|
Notional
|
| |
amounts
|
amounts
|
| |
|
|
| Foreign exchande contracts |
\4,991
|
\6,449
|
|
| 9. |
Tax-Effect Accounting |
| |
(1) |
The Principal Reasons and
Breakdown for Deferred Income Tax Assets
Deferred income tax assets as of March 31,2000 comprised
as follows:
| |
Millions of yen
|
| Excess reserve for possible loan losses |
\2,555
|
| Excess reserve for retirement benefits |
524
|
| Excess depreciation of properties |
383
|
| Others |
265
|
| Total |
\3,729
|
|
| |
(2) |
A material difference may
emerge for companies submitting consolidated financial
statements between the legal effective tax rate and the
tax burden after the application of tax-effect accounting.
The cause of difference are as follows:
| Statutory Effective Tax Rate |
41.74%
|
| Adjustment Items |
|
| Entertainment expenses and other that
are not treated as expenses for tax purposes |
9.92%
|
| Inhabitant tax and other |
10.69%
|
| Dividends received that are not treated
as income for tax purposes |
10.89%
|
| Others..... |
6.84%
|
| Tax burden of corporate and other taxes
after the application of tax-effect accounting |
80.08%
|
|
| 10. |
Segment Information |
| |
(1) |
Business Segment Information
Subsidiary is engaged in business of trust banking operations.
As the proportion of those activities is deemed immaterial,
the segment information of those business is not disclosed. |
| |
(2) |
Geographic Segment Information
As subsidiary is engaged in business in domestic area
only, the geographic segment information of those business
is omitted. |
| |
(3) |
Income from Foreign Operations
| |
Millions of yen
|
| |
Ordinary Income
|
Ordinary Income
|
Ratio
|
| |
(Foreign Operations)(a)
|
(Consolidated)(b)
|
(a)/(b)
|
| |
|
| Year ended March 31,1999 |
3,817
|
24,064
|
15.8%
|
| Year ended March 31,2000 |
2,858
|
23,420
|
12.2%
|
| |
|
Ordinary income (foreign operations)
represents the sum of ordinary income from foreign currency
transactions, yen-denominated trade bills and yen-denominated
transactions with non-residents in Japan. The amounts
of operating income by country or area are not available.
|
| 11. |
Transactions to Associated
Companies
|
| |
|
| (The Saikyo Lease Co.,LTD.)
|
| |
Location: |
Tokuyama,Yamaguchi,Japan |
| |
Capital: |
JP\100million |
| |
Business: |
leasing,financing |
| |
Share of voting right: |
direct:25% indirect:8% |
| |
Relationship: |
The company is in close connection with the bank
in all banking transactions. |
| |
Business Transactions: |
|
Millions of yen
|
|
| |
|
loans |
4,887
|
|
| |
|
guarantees |
250
|
|
| |
|
securities lent |
2,393
|
|
| |
|
leasing |
626
|
|
| |
Balance at year
ended March 31,2000 |
| |
|
loans |
5,187
|
|
| |
|
guarantees |
150
|
|
| |
|
securities lent |
3,707
|
|
(The Saikyo Million Card Co.,LTD.)
|
|
| |
Location: |
Tokuyama,Yamaguchi,Japan |
| |
Capital: |
JP\30million |
| |
Business: |
Credit card services |
| |
Share of voting right: |
direct:25% indirect:8% |
| |
Relationship: |
The company is in
close connection with the bank in all banking transactions. |
| |
Business Transactions: |
|
Millions of yen
|
|
| |
|
loans |
1,342
|
|
| |
Balance at year
ended March 31,2000 |
| |
|
loans |
1,370
|
|
|
| |
(1) |
The business transactions is based on the
weighted average amount during the year. |
| |
(2) |
Consumption taxes of leasing tarnsactions are excluded.
|
| 12. |
Per Share Data
Net assets per share as of March 31, 2000 and net income
per share for the year ended March 31, 2000 are as follows:
|
| |
|
| |
Yen
|
| Net assets per share |
\454.78
|
| Net income per share |
0.85
|
| Diluted net income per share |
-
|
|
| |
(1) |
The computation of net income
per share is based on the weighted average number of share
of common stock outstanding during the year. |
| |
(2) |
As no potential stock is held, diluted
net income per share is not described.
|
| 13. |
Important Events Occurred after Settlement
Life Co., Ltd. has made an application of the stock
company reorganization and rehabilitation act to the
Tokyo District Court on May 19, 2000. Therefore, ￥462million
losses against the loans to Life Co., Ltd. will occur
in the next term.
|
| 14. |
Capital Adequacy Ratio (Domestic
Standard)
|
| |
|
| |
Millions of yen
|
| |
1999
|
2000
|
| |
|
| Tier 1 |
|
|
| Capital stock |
\4,149
|
\8,099
|
| Capital surplus |
1,978
|
5,745
|
| Retained earnings |
16,025
|
15,765
|
| |
|
| Total(a) |
\22,153
|
\29,611
|
| |
|
| Tier 2 |
|
|
| 45% of the balance between revalued amount |
|
|
| and book value before revaluation |
2,056
|
2,048
|
| Reserve for possible loan losses |
1,233
|
2,067
|
| |
|
| Total |
3,289
|
4,115
|
| |
|
| Count in net worth(b) |
3,289
|
4,115
|
| |
|
| Net worth(a)+(b)=(c) |
\25,443
|
\33,726
|
| |
|
| Risk-Weighted Assets |
|
|
| On-balance-sheet exposure |
396,382
|
395,366
|
| Off-balance-sheet exposure |
9,633
|
7,016
|
| |
|
| Total(d) |
\406,015
|
\402,382
|
| |
|
| Capital Adequacy Ratio(Domestic Standard)(c)/(d)x100 |
6.26%
|
8.38%
|
| |
|
|
| 15. |
Risk Management Credits
|
| |
|
| |
Millions of yen
|
| |
1999
|
2000
|
| |
|
| Loans to customers in bankruptcy proceedings |
11,713
|
12,360
|
| Non-accrual delinquent loans |
4,080
|
9,397
|
| Loans past due for three months or more |
959
|
195
|
| Restructured loans under the revised uniform
rules |
3,135
|
7,615
|
| |
|
| Total |
19,889
|
29,568
|
| |
|
| Ratio to total balance of loans and bills
discounted |
3.97%
|
5.96%
|
| |
|
|
