ANNUAL REPORT
April 1, 2016 - March 31, 2017
HOKUETSU
BANK
2017
■Contents
• About Hokuetsu Bank ����������� 1
• Financial Performance Highlights ������ 2
• Management System ����������� 3
• Corporate Governance ���������� 3
• Risk Management Structure �������� 5
• Management Condition of Each Risk ���� 6
• Compliance ��������������� 8
• Overview of Consolidated Settlement ���� 9
• Overview of Non-consolidated Settlement � 16
• Corporate Data ������������� 19
About Hokuetsu Bank
Characteristics of Niigata Prefecture
Niigata Prefecture is located at the center of the coast of the Sea of Japan and has the fifth largest land area among the prefec-tures in Japan spanning 12,584 km2, which is home to a population of about 2.3 million.
In terms of industries, agriculture is thriving in Niigata Prefecture, boasting the largest output of rice in Japan, while a variety of commerce and industries including Western metal tableware, kerosene heaters and rice crackers have also been gathering in the prefecture.
With such domestic traffic networks as Shinkansen lines and expressway networks, as well as an international airport and an international trading port, Niigata Prefecture has geographical conditions which make it an excellent base in the Northeast Asian region.
Corporate Philosophy
MissionThe Hokuetsu Bank, Ltd. will extensively provide financial services, gain the trust of its customers and fulfill its role of contributing to the development of local communities.
Disclaimer Concerning the Proper Use of These Materials
These materials contain statements on future business results.
Such statements do not guarantee the future business results, and involve risks and uncertainties. They may vary from the plans or forecasted figures due to changes in business conditions and other factors.
Overview of the Bank
Name: The Hokuetsu Bank, Ltd.
Location of the Head Office: 2-14, Otedori 2-chome, Nagaoka City, Niigata 940-8650 Date of Foundation: December 20, 1878
Total Assets: 2,726,621 million yen Paid-in Capital: 24,538 million yen
Number of Branches: 84 (79 in Niigata Prefecture; five outside the prefecture) Number of Employees: 1,486 (including 59 seconded employees)
(as of March 31, 2017)
Since starting operations in December 1878, The Hokuetsu Bank, Ltd. has been operating with the support of customers from the local communities, with Niigata Prefecture as its main operating base.
Port of Niigata
Ban-Etsu Expressway Hokuriku Expressway Niigata City
Niigata Airport
Port of Naoetsu
Kan-Etsu Expressway
Joshin-Etsu Expressway
Joetsu Shinkansen
Nagaoka City
Tokyo Saitama Takasaki/
Financial Performance Highlights
Consolidated Basis
Non-consolidated Basis
(¥ million)
(as of March 31) 2015 2016 (as of March 31) 2015 2016 (as of March 31) 2015 2016 Net income attributable to stockholders of parent company
6,438 0 4,000 6,000 8,000 7,766 2017 6,709
(¥ million)
Total assets 0 5 15 10 0 1,000,000 3,000,000 2,000,000 2,616,867 (%)
Capital adequacy ratio
(based on Japanese domestic standards, Basel III)
9.01 2017 8.99 9.09 2,704,868 2017 2,729,171
(as of March 31) 2015 2016 (as of March 31) 2015 2016 (as of March 31) 2015 2016
(¥ million)
Deposits 2,288,767 2017 2,362,850 0 1,000,000 2,000,000 3,000,000 2,220,376
(¥ million)
Loans and bills discounted
1,515,019 2017 1,545,998 0 500,000 1,000,000 1,500,000 2,000,000
(¥ million)
Securities 936,303 2017 994,923 0 300,000 600,000 900,000 1,200,000 942,841 1,472,673
(Unit: Million yen, %)
Year ended March 31 2013 2014 2015 2016 2017 Thousand U.S.
dollars
Ordinary income 48,940 51,413 57,013 57,818 48,206 $429,681
Ordinary profit 10,477 9,242 11,896 13,099 9,149 $81,549
Net income attributable to stockholders of parent company 5,854 4,838 6,438 7,766 6,709 $59,800
Comprehensive income 13,020 2,209 22,106 7,283 (645) $(5,749)
Total net assets 95,846 93,125 113,562 118,021 115,972 $1,033,710
Total assets 2,363,447 2,495,717 2,616,867 2,704,868 2,729,171 $24,326,330
Capital adequacy ratio
(based on Japanese domestic standards,Basel III) — 11.02% 9.09% 9.01% 8.99% 8.99%
Capital adequacy ratio
(based on Japanese domestic standards,Basel II) 11.39% — — — — —
(Note) With the application of standards such as the “Revised Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (ASBJ) State-ment No. 21, September 13, 2013), “Consolidated net income” has been changed to “Net income attributable to stockholders of parent company.”
(Unit: Million yen, Thousand shares, %, persons)
Year ended March 31 2013 2014 2015 2016 2017 Thousand U.S.dollars
Ordinary income 43,602 46,281 51,640 52,315 42,562 $379,374
Ordinary profit 9,085 8,214 10,571 12,109 8,326 $74,213
Net income 5,312 4,467 5,901 7,332 6,707 $59,782
Common stock 24,538 24,538 24,538 24,538 24,538 $218,718
Total number of outstanding shares 247,142 245,142 245,142 245,142 24,514 24,514
Total net assets 90,638 90,151 107,387 114,168 111,631 $995,017
Total assets 2,355,899 2,489,268 2,610,936 2,701,914 2,726,621 $24,303,601
Deposits 2,146,143 2,164,734 2,220,376 2,288,767 2,362,850 $21,061,146
Loans and bills discounted 1,386,722 1,423,505 1,472,673 1,515,019 1,545,998 $13,780,176
Securities 831,468 854,354 942,841 936,303 994,923 $8,868,196
Capital adequacy ratio
(based on Japanese domestic standards,Basel III) — 10.53% 8.55% 8.48% 8.45% 8.45%
Capital adequacy ratio
(based on Japanese domestic standards,Basel II) 10.94% — — — — —
Dividend payout ratio 28.12 32.94 24.76 19.74 21.41 21.41
Number of employees 1,262 1,429 1,444 1,431 1,427 1,427
Notes: 1. Yen amounts of less than one million yen are omitted.
2. Amount in U.S. dollar is translated from Japanese yen, solely for convenience, at ¥112.19 = U.S. $1.00, the exchange rate prevailing on March 31, 2017. Notes: 1. The number of employees does not include seconded employees, employees on a short-term contract, and temporary employees.
The Bank has adopted a corporate auditor system and established the Board of Directors, which decides on impor-tant management matters and other matters, and the Board of Corporate Auditors, which audits management.
The Board of Directors comprises 13 Directors, including two Outside Directors, (as of June 2017), and holds meet-ings once a month, in principle, to decide on matters stipulated by laws and regulations, and the Bank’s Articles of In-corporation and on important business execution.
Meanwhile, the Board of Corporate Auditors is composed of four Corporate Auditors, including two Outside Corpo-rate Auditors, (as of June 2017). Each CorpoCorpo-rate Auditor attends the Board of Directors’ meetings among other impor-tant meetings and conducts audit on the status of business execution and property, performance of duties by Directors and other matters, pursuant to the audit policy and plan decided by the Board of Corporate Auditors.
Details on the Corporate Organs
The Bank has positioned the reinforcement of compliance as a top-priority management issue and all officers and employees are carrying out corporate activities fairly and sincerely in accordance with various regulations, including the Hokuetsu Bank Ethics Charter.
Regarding business operations, important issues are decided by the Board of Directors, while the Legal Affairs Office of the Risk Control Division, which oversees compliance matters, the operations divisions and legal compliance coordi-nators in the respective divisions and branches are making thorough efforts for compliance. In addition, the functions to check conformity in the performance of duties by officers and employees are maintained through verifications by the au-dit division, the establishment of systems including a whistle-blowing system and other measures.
Reinforcement of Compliance
With regard to the establishment of risk management, basic ideas are clarified in the General Policy on Risk Manage-ment, and management subjects and management systems are specified systematically in the General Rules on Risk Management.
Regarding business operations, the Board of Directors receives reports on the status of material risk management and decides on basic policies and other necessary matters. Furthermore, the Risk Control Division is designated as the department in control of risk management and the organizations respectively responsible for the management of each type of risk are specified, while various committees and organs have been established to cope with individual themes. These activities are verified by the Audit Division.
Establishment of Risk Management
Management System
The basic policy of the Bank is to win the trust of customers and regional residents through provision of financial ser-vices and make contributions to the development of local communities. In addition, the Bank intends to fulfill its respon-sibilities for its shareholders and employees by ensuring stable earnings and improving management transparency.
To that end, the Bank will continue to aim at well-balanced management based on proper risk management, while further enhancing management functions for corporate governance in light of the purpose of Japan’s “Corporate Gover-nance Code.”
As companies are highly expected to act in accordance with corporate ethics, the Bank has positioned the reinforce-ment of compliance as a top-priority managereinforce-ment issue and is actively and organizationally applying measures based on the Bank’s compliance plan.
Corporate Governance
Appropriateness of business at each Group company is ensured through the Rules on Affiliated Company Operation as well as application and mutatis mutandis application of various regulations of the Bank. In addition, audits are per-formed on each Group company to verify whether its business is properly operated in line with Group management.
Proper Business Operation at Each Group Company
Corporate Auditors attend important meetings which include the Board of Directors’ meetings, the Council of Manag-ing Directors, various meetManag-ings and committees, and read principal internal approval documents and other important documents concerning business execution. They can also seek explanations concerning such documents from Direc-tors or employees.
Directors and employees of the Bank and its Group companies provide necessary information pursuant to provisions stipulated by the laws and regulations and by the Board of Corporate Auditors, and report the status of performance of their duties and other matters.
Furthermore, to raise the effectiveness of audits, Corporate Auditors exchange opinions and information with Repre-sentative Directors as well as endeavor to cooperate with the Audit Division and the accounting auditor.
Maintaining the Functions of Corporate Auditors
Corporate Governance Structure of the Bank
The corporate governance structure mentioned above is based on the “Basic Policy on Establishment of Internal Control System,” established by the Bank.
The Bank is striving to speed up decision-making of management by establishing the Council of Managing Directors, which comprises officers with titles who hold posts of Managing Director or higher, as an organ to discuss and decide on matters entrusted by the Board of Directors.
Information and documents pertaining to the performance of duties by Directors are properly stored and managed (including disposal) in accordance with the Bank’s internal regulations and rules, while the status of their management and operation is verified and the regulations and rules are reviewed, as necessary.
Performance of Duties by Directors
General Meeting of Shareholders
Risk Management Control (Risk Control Division) (Council of Managing Directors)
Board of Directors Corporate Auditors/Board
of Corporate Auditors
Various Meetings and Committees
Internal Audit (Audit Division) Compliance Control
Chart of Risk Management Structure
While banking operations are becoming more diverse and earnings opportunities are expanding, there have been more risks than ever before at the same time. In keeping with changes in the financial environment and the rapid prog-ress of financial techniques, increasingly complex and advanced risks have greater impact on bank management.
The Bank fully recognizes the crucially important role of risk management, which is positioned as one of the primary tasks in its management. In accordance with the General Rules on Risk Management, the Bank has implemented a risk management structure whereby the organizations responsible for the management of individual types of risks are speci-fied and the Risk Control Division oversees the management of these diverse risks to ensure overall risk control.
The Audit Division, which is independent of sales operations and credit-assessment operations, conducts stringent internal audits of branches and divisions at the head office regarding their overall risk management.
Risk Management Structure
Corporate Auditors/ Board of Corporate Auditors
Risk Control Division (Legal Affairs Office) Rules on Compliance
Compliance Control
Risk Control Division (Credit Risk Management Office) Rules on Credit Risk Management
Credit Risk Management Market Risk Management
Risk Control Division (Risk Management Group) Rules on Market Risk Management
Administrative Risk Management
Operation Supervision Division (Operation Management
Department) Rules on Operation Administrative
Risk Management
Operation Supervision Division (System Management
Department) Rules on System Risk
Management
System Risk Management
Security Policy
Branches Head Office Affiliated Companies
Reputation Risk Management
Audit on Branches
Risk Control Division (Risk Management Group)
Rules on Reputation Risk Management
Audit Division (Branch Audit Group) Rules on Internal Audit
Audit on Head Office and Affiliated Companies
Audit Division (Internal Audit Group) Rules on Internal Audit
Audit on Assets
Audit
Audit Division (Internal Audit Group) Rules on Internal Audit Risk Control Division
(Legal Affairs Office)
Legal Risk Management
Human Resource Division (Human Resource Group) Rules on Human Risk
Management
Human Risk Management Tangible Asset Risk Management
General Affairs Division (Properties Administration Group)
Rules on Tangible Asset Risk Management Risk Control Division
(Risk Management Group) Rules on Liquidity Risk Management
Liquidity Risk Management Operational Risk Management
Operation Supervision Division (Operation Administration Group) Rules on Operational Risk Management
Management Control of Customer Protection, etc.
Risk Control Division (Legal Affairs Office) Rules on Management of Customer
Protection, etc.
Risk Management Control
Risk Control Division (Risk Management Group) General Rules on Risk Management
Capital Adequacy Management
General Planning Division Rules on Capital Adequacy Management
General Affairs Division (Disaster Countermeasure Committee)
Basic Rules on Crisis Responses
Crisis Response Control Board of Directors
Council of Managing Directors
Business Continuity Planning (BCP) Compliance Manual
Asset Liability Management (ALM) Meeting
Management Condition of Each Risk
Capital adequacy management involves the use of measures aimed at improving capital adequacy, the evaluation of the sufficiency of capital adequacy, and the calculation of an accurate capital adequacy ratio.
The Bank’s basic policy includes: [1] maintain an appropriate capital adequacy level to ensure sound management while allocating management resources efficiently to improve earning power and build a strong management constitu-tion; and [2] ensure a proper response to increasingly diverse customer needs by monitoring changes in the environ-ment of economics and finance while controlling total risks at levels according to the amount of capital.
To calculate an accurate capital adequacy ratio, the Bank also employs a system to ensure that the numbers calcu-lated by recalcu-lated divisions are checked by other divisions. The Internal Audit Group of the Audit Division verifies the ap-propriateness and accuracy of this calculation process.
[1] Capital Adequacy Management
Market risk is a two-fold risk. It consists of the risk that the value of assets and liabilities held by a bank fluctuates and results in a loss due to market fluctuations of interest rates, exchange rates, share prices, etc., and also of a risk that the profits generated by the assets and liabilities held by the bank will fluctuate and result in a loss.
The Bank’s Market and Capital Division is engaged in the market-capital-related activities. In addition to the segrega-tion of duties between front-office operasegrega-tions and back-office operasegrega-tions, the Risk Management Group of the Risk Con-trol Division is engaged in the management and conCon-trol of market-related risks to ensure cross-checking.
Furthermore, the BPV (Basis Point Value) and VAR (Value at Risk) approaches are applied to measure market risks, and the results are reported monthly to the Board of Directors.
[3] Market Risk Management
Liquidity risk refers to the risk that a financial institution becomes unable to secure necessary funds and faces a cash flow crunch or is forced to procure funds at significantly higher interest rates than normal due to the deterioration of its financial condition, etc., and eventually generates a loss.
The Market and Capital Division is engaged in daily cash-flow management and administration, while the Risk Man-agement Group of the Risk Control Division monitors liquidity risk manMan-agement indicators in order to continually clarify the cash-flow position.
[4] Liquidity Risk Management
Credit risk is a condition in which the value of loans and other assets of a financial institution decrease or are lost due to the bankruptcies and deteriorating financial conditions of customers, leading to a loss on the part of the financial in-stitution.
The Bank always conducts a loan assessment based on the strict assessment standards before approving any loan, and it operates on the basic policy of managing its funds on a widely diversified basis without providing excessive loans to certain customers, in order to enhance the soundness of its assets.
For appropriate risk management corresponding to the degree of credit risk, in addition to the “credit rating” system based on objective criteria, we also put in place assessment and management structures based on the authorization system according to credit ratings.
[2] Credit Risk Management
Operational risk is the condition that emerges due to the inappropriateness or non-functioning of any of the Bank’s operation processes or systems, due to the inappropriate action of any officer or employee of the Bank, or from the oc-currence of any external event.
The Bank defines the six operational risks to be managed. They are:
[1] administrative risk [2] system risk [3] reputation risk [4] legal risk [5] human risk [6] tangible asset risk
In managing operational risks, the Operation Administration Group of the Operation Supervision Division centrally identifies and manages all operational risks, while each division subject to operational risks manages the applicable risks from a more detailed standpoint.
Legal risk is the condition in which failure to strictly comply with any law, ordinance, the Bank’s internal regulation or other social norm could result in a loss.
The Bank’s Legal Affairs Office of the Risk Control Division oversees all compliance matters. It implements proper measures to prevent these risks and thereby reinforce the management of legal risks.
[9] Legal Risk Management
Administrative risk is the condition in which an administrative error or inadvertent action by an officer or employee re-sults in a loss to the financial institution.
The Bank’s basic policy is to establish a reliable administrative structure centered on the Operation Supervision Divi-sion, with emphasis on the management of administrative risks in order to prevent administrative errors and inadvertent actions related to administration.
Accordingly, the Bank promotes the streamlining and enhancement of efficiency in administrative operations, the strengthening of training and provision of on-site guidance to staff at branches, and the review of procedures and es-tablishment of internal regulations and rules.
The Bank, in addition to complying with the Act on the Protection of Personal Information, is vigorously enacting mea-sures to prevent any damage due to criminal acts, such as fraudulent withdrawals using stolen bankbooks and fraudu-lent bank transfers, which have emerged as significant problems in society.
[6] Administrative Risk Management
Human risk is the condition in which any discriminatory action of the Bank’s officer or employee, such as fraud, crime or sexual harassment, results in a loss.
The Bank’s Human Resource Group, which is part of the Human Resource Division, implements proper measures to prevent these risks to step up the management of human risks.
[10] Human Risk Management
Reputation risk is the risk involving the potential occurrence of a false reputation contrary to reality, such as the dis-semination of rumor or innuendo, that could negatively affect a company’s business status.
The Bank is strengthening the management of reputation risks under the basic management policy of acting in a timely and appropriate manner to maintain calm and minimize damage should any reputation risk be generated.
We are stepping up the management of reputation risks through appropriate disclosure, the establishment of systems for gathering and reporting information on the Bank’s reputation, and the implementation of contingency plans.
[8] Reputation Risk Management
System risk is a condition that occurs due to an earthquake, flood or other force majeure; a hardware failure, program error, fire or other accident; or due to computer crime, a detonation or other willful conduct. In addition to the aforemen-tioned system risks, the risks of unauthorized or illicit disclosure of personal information and trade secrets must be fully addressed.
The Bank has relocated its mission-critical systems to the Regional Bank Shared Banking Center operated by NTT Data Corp. in May 2009.
The Center, which employs the cutting-edge, next-generation system “BeSTA,” is one of the country’s largest inte-grated service centers for regional banks. The Bank is one of 14 institutions that participate in.
The Center also has backup facilities to ensure smooth recovery in the event a natural disaster occurs.
Additionally, the Bank is strengthening its risk management structures based on the review of computer systems planning and development processes and administrative processes. Moreover, the Bank is implementing measures to prevent fraudulent withdrawals using fake cards and phishing scams, in order to prevent these emerging societal prob-lems from affecting its customers and operations.
[7] System Risk Management
Tangible asset risk is the condition in which any external events, such as natural disasters, stop of social infrastructure and terrorism or destruction of tangible assets could result in a loss.
The Bank is striving to avoid or reduce these risks by conducting regular inspections and practices for prevention of accidents and disasters.
Financial institutions, in view of their responsibilities and roles with respect to the society, are required to maintain cor-porate cultures incorporating transparency of management and thorough legal compliance.
Based on this understanding, the Bank, in accordance with the Hokuetsu Bank Ethics Charter and its principles es-tablished for the purpose of establishing corporate ethics, endeavors to ensure thorough compliance with the laws, reg-ulations and rules. Additionally, the Bank has positioned the reinforcement of compliance as a top-priority management issue and is actively and organizationally applying measures based on the Bank’s compliance plan.
In the area of organizations and systems, important issues relating to compliance are decided by the Board of Direc-tors, while the Legal Affairs Office of the Risk Control Division, which oversees compliance matters, the operations divi-sions and legal compliance coordinators in the respective dividivi-sions and branches are making thorough efforts for compliance. The efficiency of these processes is ensured through the audits performed by corporate auditors as well as verifications by the Audit Division, which is responsible for internal controls.
The Legal Affairs Office of the Risk Control Division, in order to enhance the cross-checking function for legal risks, conducts legal checks of the various documents and contracts used internally. Meanwhile, the twice-monthly Legal Consultation Meeting is one in which preliminary consultation and advice is sought on legal matters from our corporate counsel and various measures are examined according to the principles of compliance. If any legal matter requires fur-ther examination, a Compliance Conference Meeting is held, with attendance by the head of each relevant division and corporate counsel, to discuss a proper course of action in compliance with the law.
The Bank is implementing other measures to ensure compliance within the organization, such as the inclusion of compliance lectures as part of various seminars, the issuance of “Legal News,” and self-compliance checks conducted by all Bank personnel. Additionally, the Bank hands out its compliance manual to all personnel to make sure each per-son understands the key points and items to note regarding regulations related to banking operations. These are only a few examples of how the Bank is working to enhance its compliance system.
Efforts Regarding Legal Compliance
Hokuetsu Bank Ethics Charter
[1] Sound Management and Establishment of Unwavering Confidence
The Hokuetsu Bank, Ltd. recognizes its social responsibilities and duties as a bank, and will establish unwavering confidence through sound and efficient business operation.
[2] Provision of High Quality Financial Services
The Hokuetsu Bank, Ltd. will provide high quality services, which fully give considerations to appropriate protection of interests of customers through the improvement of the security level, ensuring of business continuity at the time of disaster and other measures, while satisfying needs of customers by making the most of originality and ingenuity, to say nothing of its function as infrastructure that supports economic activities.
[3] Strict Compliance with Laws, Regulations and Rules
The Hokuetsu Bank, Ltd. will strictly observe all laws, regulations and rules, performing fair and sincere corporate activities that are not against social norms.
[4] Fair Disclosure of Information on Management and Other Matters
The Hokuetsu Bank, Ltd. will extensively communicate with society and fairly and properly disclose information on management and other matters to realize transparent management.
[5] Respect to Human Rights of Employees
The Hokuetsu Bank, Ltd. will respect human rights and individuality of employees, and ensure a safe and pleasant workplace environment.
[6] Efforts for Environmental Issues
The Hokuetsu Bank, Ltd. will vigorously work on environmental issues by providing financial services that contribute to environmental conservation and through other measures, while efficiently using resources and reducing wastes. [7] Efforts for Social Contribution Activities
The Hokuetsu Bank, Ltd. realizes that society is the very place where banks can continue to exist and develop, and will proactively focus on social contribution activities as a “good corporate citizen” that grows together with society. [8] Cut-off of Relationships with Anti-Social Forces
The Hokuetsu Bank, Ltd. will firmly confront anti-social forces that pose a threat to the order and safety of civil so-ciety, and thoroughly cut off relationships with them.
[9] Contributions to Local Communities
The Hokuetsu Bank, Ltd. will deeply have roots in the region and contribute to the development of local communities.
(Unit: Million yen) Period
Item
End of previous consolidated accounting year March 31, 2016
End of current consolidated accounting year March 31, 2017
End of current consolidated accounting year March 31, 2017 Thousand USD
ASSETS
Cash and due from banks ¥ 192,122 ¥ 127,596 $ 1,137,320
Trading account securities 1,392 1,413 12,594
Securities 936,105 992,777 8,849,068
Loans and bills discounted 1,506,699 1,537,161 13,701,408
Foreign exchange 6,443 8,203 73,117
Lease claims and lease investment assets 10,517 11,594 103,342
Other assets 21,930 18,705 166,726
Tangible fixed assets 29,444 29,465 262,634
Buildings 8,642 8,729 77,805
Land 19,182 19,121 170,434
Lease assets 41 21 187
Construction in progress 249 111 989
Other tangible fixed assets 1,328 1,482 13,209
Intangible fixed assets 869 930 8,289
Software 633 515 4,590
Lease assets 20 11 98
Other intangible fixed assets 214 403 3,592
Net defined benefit assets 1,459 2,320 20,679
Deferred tax assets 298 127 1,132
Customers' liabilities for acceptances and guarantees 7,272 5,907 52,651
Reserve for possible loan losses (9,685) (7,034) (62,697)
Total assets ¥ 2,704,868 ¥ 2,729,171 $ 24,326,330
LIABILITIES
Deposits 2,282,090 2,359,644 21,032,569
Certificates of deposits 107,120 106,530 949,549
Payables under repurchase agreements 124,304 102,548 914,056
Borrowed money 13,050 80 713
Foreign exchange 229 332 2,959
Other liabilities 42,372 31,153 277,680
Accrued bonuses 836 834 7,433
Allowance for bonuses to directors and corporate auditors 25 25 222
Net defined benefit liabilities 838 563 5,018
Allowance for retirement benefits to directors and corporate
auditors 7 12 106
Reserve for reimbursement of deposits 551 643 5,731
Reserve for contingencies 327 463 4,126
Reserve for losses on return of interest 39 35 311
Deferred income taxes 4,896 1,549 13,806
Deferred income taxes for revaluation 2,884 2,876 25,635
Acceptances and guarantees 7,272 5,907 52,651
Total liabilities ¥ 2,586,847 ¥ 2,613,198 $ 23,292,610
NET ASSETS
Common stock 24,538 24,538 218,718
Capital surplus 19,002 19,002 169,373
Retained earnings 48,196 53,488 476,762
Treasury stock (1,381) (1,387) (12,362)
Total stockholders’ equity 90,355 95,641 852,491
Unrealized holding gains (losses) on securities 35,577 21,296 189,820
Deferred gains (losses) on hedges (7,894) (1,422) (12,674)
Unrealized gains from revaluation of land held for use 2,636 2,616 23,317
Remeasurements of defined benefit plans (2,844) (2,394) (21,338)
Accumulated total of other comprehensive income 27,474 20,095 179,115
Stock subscription rights 116 156 1,390
Non-controlling interests 76 78 695
Total net assets 118,021 115,972 1,033,710
Total liabilities and net assets ¥ 2,704,868 ¥ 2,729,171 $ 24,326,330
Overview of Consolidated Settlement
Consolidated Financial Statements(Unit: Million yen) Period
Item
Previous consolidated accounting year (April 1, 2015 through
March 31, 2016)
Current consolidated accounting year (April 1, 2016 through
March 31, 2017)
Current consolidated accounting year (April 1, 2016 through
March 31, 2017) Thousand USD
Ordinary income ¥ 57,818 ¥ 48,206 $ 429,681
Interest and dividends income 30,309 29,341 261,529
Loans and bills discounted 19,285 18,132 161,618
Interest and dividends on securities 10,900 11,140 99,295
Call loans and bills purchased 31 (2) (17)
Receivables under resale agreements — (4) (35)
Deposits 47 34 303
Other 44 41 365
Fees and commission 7,498 7,423 66,164
Other operating income 17,152 9,219 82,173
Other ordinary income 2,858 2,222 19,805
Gains from reversal of reserve for possible loan losses — 132 1,176
Gains from recovery of written-off debts 229 545 4,857
Other income 2,628 1,544 13,762
Ordinary expenses 44,718 39,056 348,123
Interest expenses 2,853 1,965 17,514
Deposits 938 603 5,374
Certificates of deposits 40 23 205
Call money and bills sold 0 (3) (26)
Securities lending 54 270 2,406
Borrowed money 79 30 267
Other 1,741 1,040 9,269
Fees and commissions 3,530 3,764 33,550
Other operating expenses 13,519 8,967 79,926
General and administrative expenses 22,034 22,647 201,862
Other expenses 2,782 1,711 15,250
Provision of allowance for doubtful accounts 974 — —
Other expenses 1,807 1,711 15,250
Ordinary profit 13,099 9,149 81,549
Extraordinary gains 11 0 0
Gains from disposal of fixed assets 11 0 0
Extraordinary losses 133 66 588
Losses on disposal of fixed assets 109 47 418
Losses on impairment of fixed assets 23 18 160
Income before income taxes 12,978 9,083 80,960
Corporate tax, corporate inhabitant tax and business tax 4,091 2,279 20,313
Adjustment of corporate taxes, etc. 922 91 811
Total corporate taxes, etc. 5,013 2,370 21,124
Net income 7,964 6,712 59,827
Net income attributable to non-controlling interests 198 2 17
Net income attributable to stockholders of parent company ¥ 7,766 ¥ 6,709 $ 59,800
(Unit: Million yen) Period
Item
Previous consolidated accounting year (April 1, 2015 through
March 31, 2016)
Current consolidated accounting year (April 1, 2016 through
March 31, 2017)
Current consolidated accounting year (April 1, 2016 through
March 31, 2017) Thousand USD
Net income ¥ 7,964 ¥ 6,712 $ 59,827
Other comprehensive income (680) (7,358) (65,585)
Unrealized holding gains (losses) on securities 6,311 (14,280) (127,284)
Deferred gains (losses) on hedges (4,783) 6,471 57,678
Remeasurements of defined benefit plans (2,361) 449 4,002
Unrealized gains from revaluation of land held for use 151 — —
Comprehensive income ¥ 7,283 ¥ (645) $ (5,749)
Comprehensive income related to stockholders of
parent company 7,067 (648) (5,775)
Comprehensive income related to non-controlling
interests 215 2 17
Stockholders’ equity
Common stock Capital surplus Retained earnings Treasury stock stockholders’ equityTotal
Balance at beginning of current
period ¥ 24,538 ¥ 16,965 ¥ 41,858 ¥ (720) ¥ 82,641
Changes during current period
Dividends from surplus (1,452) (1,452)
Net income attributable to
stockholders of parent company 7,766 7,766 Acquisition of treasury stock (714) (714)
Disposal of treasury stock (0) (13) 53 39
Reversal of unrealized gains from
revaluation of land held for use 37 37 Change in parent’s equity interests
arising from transactions with non-controlling stockholders
2,036 2,036
Net changes of items other than stockholders’ equity during current period (net amount)
Total changes during current period — 2,036 6,337 (661) 7,713
Balance at end of current period ¥ 24,538 ¥ 19,002 ¥ 48,196 ¥ (1,381) ¥ 90,355
Other accumulated comprehensive income
Stock subscription
rights
Non-controlling
interests
Total net assets Unrealized
holding gains (losses) on
securities
Deferred gains (losses) on
hedges
Unrealized gains from revaluation of
land held for use
Remeasure-ments of
defined benefit plans
Total of other accumulated comprehensive
income
Balance at beginning of current
period ¥ 29,283 ¥ (3,110) ¥ 2,521 ¥ (483) ¥ 28,210 ¥ 119 ¥ 2,591 ¥ 113,562 Changes during current period
Dividends from surplus (1,452)
Net income attributable to
stockholders of parent company 7,766 Acquisition of treasury stock (714)
Disposal of treasury stock 39
Reversal of unrealized gains from
revaluation of land held for use 37 Change in parent’s equity interests
arising from transactions with non-controlling stockholders
2,036
Net changes of items other than stockholders’ equity during current period (net amount)
6,293 (4,783) 114 (2,361) (736) (2) (2,515) (3,254)
Total changes during current period 6,293 (4,783) 114 (2,361) (736) (2) (2,515) 4,459
Balance at end of current period ¥ 35,577 ¥ (7,894) ¥ 2,636 ¥ (2,844) ¥ 27,474 ¥ 116 ¥ 76 ¥ 118,021
Previous consolidated accounting year (April 1, 2015 through March 31, 2016) (Unit: Million yen)
Stockholders’ equity
Common stock Capital surplus Retained earnings Treasury stock stockholders’ equityTotal
Balance at beginning of current
period ¥ 24,538 ¥ 19,002 ¥ 48,196 ¥ (1,381) ¥ 90,355
Changes during current period
Dividends from surplus (1,436) (1,436)
Net income attributable to
stockholders of parent company 6,709 6,709 Acquisition of treasury stock (6) (6)
Disposal of treasury stock (0) 0 0
Reversal of unrealized gains from
revaluation of land held for use 20 20 Net changes of items other than
stockholders’ equity during current period (net amount)
Total changes during current period — — 5,292 (6) 5,286
Balance at end of current period ¥ 24,538 ¥ 19,002 ¥ 53,488 ¥ (1,387) ¥ 95,641
Other accumulated comprehensive income
Stock subscription
rights
Non-controlling
interests
Total net assets Unrealized
holding gains (losses) on
securities
Deferred gains (losses) on
hedges
Unrealized gains from revaluation of
land held for use
Remeasure-ments of
defined benefit plans
Total of other accumulated comprehensive
income
Balance at beginning of current
period ¥ 35,577 ¥ (7,894) ¥ 2,636 ¥ (2,844) ¥ 27,474 ¥ 116 ¥ 76 ¥ 118,021 Changes during current period
Dividends from surplus (1,436)
Net income attributable to
stockholders of parent company 6,709 Acquisition of treasury stock (6)
Disposal of treasury stock 0
Reversal of unrealized gains from
revaluation of land held for use 20 Net changes of items other than
stockholders’ equity during current period (net amount)
(14,280) 6,471 (20) 449 (7,378) 40 2 (7,335)
Total changes during current period (14,280) 6,471 (20) 449 (7,378) 40 2 (2,049)
Balance at end of current period ¥ 21,296 ¥ (1,422) ¥ 2,616 ¥ (2,394) ¥ 20,095 ¥ 156 ¥ 78 ¥ 115,972
Stockholders’ equity
Common stock Capital surplus Retained earnings Treasury stock stockholders’ equityTotal
Balance at beginning of current
period $ 218,718 $ 169,373 $ 429,592 $ (12,309) $ 805,374 Changes during current period
Dividends from surplus (12,799) (12,799)
Net income attributable to
stockholders of parent company 59,800 59,800 Acquisition of treasury stock (53) (53)
Disposal of treasury stock (0) 0 0
Reversal of unrealized gains from
revaluation of land held for use 178 178 Net changes of items other than
stockholders’ equity during current period (net amount)
Total changes during current period — — 47,169 (53) 47,116
Balance at end of current period $ 218,718 $ 169,373 $ 476,762 $ (12,362) $ 852,491
Other accumulated comprehensive income
Stock subscription
rights
Non-controlling
interests
Total net assets Unrealized
holding gains (losses) on
securities
Deferred gains (losses) on
hedges
Unrealized gains from revaluation of
land held for use
Remeasure-ments of
defined benefit plans
Total of other accumulated comprehensive
income
Balance at beginning of current
period $ 317,113 $ (70,362) $ 23,495 $ (25,349) $ 244,888 $ 1,033 $ 677 $ 1,051,974 Changes during current period
Dividends from surplus (12,799)
Net income attributable to
stockholders of parent company 59,800 Acquisition of treasury stock (53)
Disposal of treasury stock 0
Reversal of unrealized gains from
revaluation of land held for use 178 Net changes of items other than
stockholders’ equity during current period (net amount)
(127,284) 57,678 (178) 4,002 (65,763) 356 17 (65,380)
Total changes during current period (127,284) 57,678 (178) 4,002 (65,763) 356 17 (18,263)
Balance at end of current period $ 189,820 $ (12,674) $ 23,317 $ (21,338) $ 179,115 $ 1,390 $ 695 $ 1,033,710
(Unit: Million yen) Period
Item
Previous consolidated accounting year (April 1, 2015 through
March 31, 2016)
Current consolidated accounting year (April 1, 2016 through
March 31, 2017)
Current consolidated accounting year (April 1, 2016 through
March 31, 2017) Thousand USD
Cash flows from operating activities:
Income before income taxes ¥ 12,978 ¥ 9,083 $ 80,960
Depreciation 1,364 1,403 12,505
Impairment losses on fixed assets 23 18 160
Net increase (decrease) in reserve for possible loan losses 1,019 (128) (1,140)
Net increase (decrease) in accrued bonuses 2 (2) (17)
Net increase (decrease) in defined benefit assets 2,500 (861) (7,674)
Net increase (decrease) in defined benefit liabilities 837 (275) (2,451)
Net increase (decrease) in allowance for retirement benefits
to directors and corporate auditors (1) 4 35
Net increase (decrease) in reserve for reimbursement of deposits 104 92 820
Net increase (decrease) in reserve for contingencies (73) 135 1,203
Net increase (decrease) in reserve for losses on return of interest (0) (3) (26)
Interest and dividends income (30,309) (29,341) (261,529)
Interest expenses 2,853 1,965 17,514
Net (gains) losses on securities transactions 5,029 149 1,328
Net (gains) losses on money held in trust 9 5 44
Net foreign exchange (gains) losses 13 (11) (98)
Net (gains) losses on disposal of fixed assets 98 47 418
Net (increase) decrease in loans and bills purchased (42,305) (32,985) (294,010)
Net increase (decrease) in deposits 67,989 77,554 691,273
Net increase (decrease) in certificates of deposits 1,340 (590) (5,258)
Net increase (decrease) in borrowings
(other than subordinated borrowings) (54,402) (10,970) (97,780)
Net (increase) decrease in due from banks
(other than The Bank of Japan) 1,071 9 80
Net increase (decrease) in payable under repurchase agreement 55,365 (21,755) (193,912)
Net (increase) decrease in foreign exchange (assets) 346 (1,760) (15,687)
Net increase (decrease) in foreign exchange (liabilities) 82 102 909
Net (increase) decrease in lease claims and lease
investment assets (199) (1,077) (9,599)
Interest and dividends received 31,140 29,890 266,423
Interest paid (2,846) (2,123) (18,923)
Other (1,390) 12,072 107,603
Subtotal 52,642 30,648 273,179
Income taxes paid (4,122) (3,604) (32,124)
Net cash provided by operating activities 48,519 27,044 241,055
Cash flows from investing activities:
Purchase of securities (1,284,693) (552,465) (4,924,369)
Proceeds from sales of securities 1,190,258 398,733 3,554,086
Proceeds from redemption of securities 100,037 67,224 599,197
Increase in money held in trust (2,000) (2,000) (17,826)
Decrease in money held in trust 1,990 1,994 17,773
Purchase of tangible fixed assets (1,105) (1,401) (12,487)
Proceeds from sales of tangible fixed assets 322 66 588
Purchase of intangible fixed assets (564) (277) (2,469)
Other 29 (3) (26)
Net cash provided by (used in) investing activities 4,274 (88,129) (785,533)
Cash flows from financing activities:
Repayment of subordinated borrowed money — (2,000) (17,826)
Dividends paid (1,453) (1,435) (12,790)
Dividends paid to non-controlling stockholders (0) (0) (0)
Purchase of treasury stock (714) (6) (53)
Proceeds from sale of treasury stock 0 0 0
Payments from changes in equity interests in subsidiaries
that do not result in change in scope of consolidation (700) — —
Proceeds from changes in equity interests in subsidiaries
that do not result in change in scope of consolidation 5 — —
Net cash used in financing activities (2,862) (3,442) (30,680)
Translation adjustments of cash and cash equivalents (13) 11 98
Increase (decrease) in cash and cash equivalents 49,917 (64,517) (575,069)
Cash and cash equivalents at beginning of year 141,890 191,808 1,709,671
Cash and cash equivalents at end of year ¥ 191,808 ¥ 127,290 $ 1,134,593
(Unit: Million yen) Period
Item
End of 111th period March 31, 2016
End of 112th period March 31, 2017
End of 112th period March 31, 2017 Thousand USD
(Assets)
Cash and due from banks ¥ 192,068 ¥ 127,543 $ 1,136,848
Cash 23,585 23,353 208,155
Deposits 168,482 104,190 928,692
Trading account securities 1,392 1,413 12,594
National government bonds 317 157 1,399
Municipal bonds 1,074 1,255 11,186
Securities 936,303 994,923 8,868,196
National government bonds 465,752 525,799 4,686,683
Municipal bonds 56,366 41,007 365,513
Corporate bonds 113,380 112,065 998,885
Stocks 27,387 35,771 318,843
Other securities 273,415 280,280 2,498,261
Loans and bills discounted 1,515,019 1,545,998 13,780,176
Bills discounted 12,662 10,721 95,561
Loans on bill 41,878 32,918 293,412
Loans on deed 1,308,142 1,328,560 11,842,053
Overdrafts 152,336 173,797 1,549,130
Foreign exchange 6,443 8,203 73,117
Deposits with other foreign branches 4,353 6,023 53,685
Foreign exchange purchased 2,086 2,168 19,324
Foreign exchange receivable 2 11 98
Other assets 17,991 13,964 124,467
Accrued income 3,685 2,822 25,153
Financial derivatives 4,444 3,073 27,391
Cash collateral paid for financial instruments 8,396 4,544 40,502
Other assets 1,465 3,523 31,402
Tangible fixed assets 28,548 28,573 254,684
Buildings 8,528 8,600 76,655
Land 18,493 18,432 164,292
Construction in progress 249 111 989
Other tangible fixed assets 1,277 1,429 12,737
Intangible fixed assets 832 909 8,102
Software 619 507 4,519
Other intangible fixed assets 212 401 3,574
Prepaid pension cost 4,708 5,199 46,341
Customers’ liabilities for acceptances and guarantees 7,271 5,907 52,651
Reserve for possible loan losses (8,665) (6,015) (53,614)
Total assets ¥ 2,701,914 ¥ 2,726,621 $ 24,303,601
Overview of Non-consolidated Settlement
Financial Statements(Unit: Million yen) Period
Item
End of 111th period March 31, 2016
End of 112th period March 31, 2017
End of 112th period March 31, 2017 Thousand USD
(Liabilities)
Deposits ¥ 2,288,767 ¥ 2,362,850 $ 21,061,146
Current deposits 105,441 110,979 989,205
Ordinary deposits 1,146,123 1,231,327 10,975,372
Savings deposits 29,369 29,863 266,182
Demand deposits 9,570 9,898 88,225
Time deposits 939,240 922,344 8,221,267
Time savings deposits 76 60 534
Other deposits 58,945 58,376 520,331
Certificates of deposits 107,120 111,530 994,117
Payables under repurchase agreements 124,304 102,548 914,056
Borrowed money 12,900 — —
Borrowings 12,900 — —
Foreign exchange 229 332 2,959
Foreign exchange sold 102 24 213
Foreign exchange payable 127 307 2,736
Other liabilities 36,637 25,033 223,130
Corporate taxes, etc. payable 1,846 328 2,923
Unpaid expenses 1,302 1,142 10,179
Unearned income 743 760 6,774
Benefit compensation reserve 0 0 0
Financial derivatives 15,334 4,844 43,176
Payables under financial instruments, etc. 1,293 3,809 33,951
Asset retirement obligations 53 82 730
Other liabilities 16,062 14,065 125,367
Accrued bonuses 815 813 7,246
Allowance for bonuses to directors and corporate auditors 25 25 222
Reserve for reimbursement of deposits 551 643 5,731
Reserve for contingencies 327 463 4,126
Deferred income taxes 5,911 1,964 17,506
Deferred income taxes for revaluation 2,884 2,876 25,635
Acceptances and guarantees 7,271 5,907 52,651
Total liabilities ¥ 2,587,746 ¥ 2,614,989 $ 23,308,574
(Net assets)
Common stock 24,538 24,538 218,718
Capital surplus 16,964 16,964 151,207
Capital reserve 16,964 16,964 151,207
Retained earnings 43,956 49,247 438,960
Legal reserve 1,936 2,223 19,814
Other retained earnings 42,020 47,024 419,146
Net retained earnings forwarded 42,020 47,024 419,146
Treasury stock (1,381) (1,387) (12,362)
Total stockholders’ equity 84,077 89,362 796,523
Unrealized holding gains (losses) on securities 35,232 20,918 186,451
Deferred gains (losses) on hedges (7,894) (1,422) (12,674)
Unrealized gains from revaluation of land held for use 2,636 2,616 23,317
Total valuation and translation adjustments 29,974 22,112 197,094
Stock subscription rights 116 156 1,390
Total net assets 114,168 111,631 995,017
(Unit: Million yen) Period
Item
111th period (April 1, 2015 through
March 31, 2016)
112th period (April 1, 2016 through
March 31, 2017)
112th period (April 1, 2016 through
March 31, 2017) Thousand USD
Ordinary income: ¥ 52,315 ¥ 42,562 $ 379,374
Interest and dividends income 30,264 29,306 261,217
Loans and bills discounted 19,255 18,115 161,467
Interest and dividends on securities 10,887 11,124 99,153
Call loans and bills purchased 31 (2) (17)
Receivables under resale agreements — (4) (35)
Deposits 45 32 285
Other 44 41 365
Fees and commissions 6,837 6,737 60,049
Foreign exchange commissions receivable 2,292 2,292 20,429
Income from other services 4,545 4,444 39,611
Other operating income 12,725 4,413 39,335
Gain on foreign exchange trading 305 — —
Gain on securities trading 10 — —
Income from national government and other bonds 3,547 3,621 32,275
Income from financial derivatives 8,860 791 7,050
Other operating income 0 0 0
Other ordinary income 2,488 2,105 18,762
Gains from reversal of allowance for loan losses — 208 1,853
Gains from recovery of written-off debts 229 544 4,848
Gain on sale of stocks, etc. 1,468 636 5,668
Other ordinary income 791 715 6,373
Ordinary expenses: 40,206 34,235 305,151
Interest expenses 2,847 1,960 17,470
Deposits 939 603 5,374
Certificates of deposits 40 23 205
Call money and bills sold 0 (3) (26)
Securities lending 54 270 2,406
Borrowed money 72 25 222
Interest swaps 1,740 1,041 9,278
Other 0 (0) (0)
Fees and commissions 4,092 4,312 38,434
Foreign exchange commissions payable 370 367 3,271
Other fees and commissions 3,721 3,945 35,163
Other operating expenses 9,523 4,576 40,787
Loss on foreign exchanges — 171 1,524
Loss on trading securities transactions — 8 71
Loss on sale of national government and other bonds 8,934 3,591 32,008
Loss on redemption of national government and other bonds 588 804 7,166
General and administrative expenses 21,074 21,719 193,591
Other expenses 2,669 1,666 14,849
Provision of reserve for possible loan losses 957 — —
Loans amortized 376 1,185 10,562
Losses on sale of stocks, etc. 708 10 89
Loss on money held in trust 9 5 44
Other expenses 617 464 4,135
Ordinary profit 12,109 8,326 74,213
Extraordinary gains 11 0 0
Gains from sales of fixed assets 11 0 0
Extraordinary losses 133 66 588
Losses on disposal of fixed assets 109 47 418
Losses on impairment of fixed assets 23 18 160
Income before income taxes 11,987 8,259 73,616
Corporate tax, corporate inhabitant tax and business tax 3,729 2,016 17,969
Adjustment of corporate taxes, etc. 925 (464) (4,135)
Total corporate taxes, etc. 4,655 1,551 13,824
Net income ¥ 7,332 ¥ 6,707 $ 59,782
Corporate Data
Chairman and CEO Satoru Araki President and CEO Katsuya Sato
Senior Managing Director Kazuyoshi Hirokawa Managing Director Ichiro Muromoto Hiroyuki Kaizu Satoru Kumakura Terasu Sato Directors
Masami Watanabe Ryuji Takahashi Makoto Takahashi Hiroki Hoshi Hiroshi Fukuhara Kiroku Takeuchi
Standing Corporate Auditors Mikiya Toyooka
Shuichi Nomizu Corporate Auditors Toshio Kitamura Shiro Watanabe (as of June 23, 2017)
BOARD OF DIRECTORS AND CORPORATE AUDITORS
Market and Capital
Accounting Auditor
Profit Center Management Center
President and CEO General Meeting of Shareholders
Board of Directors
Chairman and CEO
<Council of Managing Directors>
Senior Managing Directors
Managing Directors
Business Supervision Division
Customer Sales
Direct Channel Promotion Division
Business Promotion & Solution Division
International Business Division
Operation Supervision Division
Operation Support Division
Loan Division
General Planning Division
Risk Control Division
General Affairs Division
Human Resources Division
Secretarial Office
Audit Division
Niigata Office
Tokyo Office
Branches (as of July 1, 2017)
Secretariat of Board of Corporate Auditors Corporate Auditors/ Board of Corporate Auditors Ernst & Young ShinNihon LLC
Market and Capital Division ORGANIZATIONAL STRUCTURE
OF THE HEADQUARTERS
Date of Foundation December 20, 1878 Date of Incorporation December 7, 1942 Authorized Shares (in thousands) 600,000
Outstanding Shares (in thousands) 24,514
Paid-in Capital 24,538 million yen Number of Shareholders 7,741
Employees 1,427 Stock Listing
First Section of the Tokyo Stock Exchange (as of March 31, 2017)
Subsidiaries
Head Office
2-14, Otedori 2-chome, Nagaoka City, Niigata 940-8650
Phone: (0258) 35-3111
International Business Division Address: same as Head Office SWIFT: HETSJPJT
Phone: (0258) 39-7371 Foreign Exchange Offices
The following are the major branches providing a full range of foreign exchange banking services: Head Office
Ken-oh Tsubame Branch
1-2 Butsuryu Center, Tsubame City, Niigata 959-1277
Niigata Branch
1300, Hachibancho, Kamiookawamaedori, Chuo-ku, Niigata City, Niigata 951-8602
SERVICE NETWORK
Sanjo Branch
2-4-31, Asahicho, Sanjo City, Niigata 955-0065
Tokyo Branch
16-1, Nihonbashi Koamicho Chuo-ku, Tokyo 104-0016
Tsubame Branch
2-10, Kokucho, Tsubame City, Niigata 959-1200
Number of Branches by Area Niigata Prefecture 79
Gunma Prefecture 2
Saitama Prefecture 2
Tokyo 1
Total 84
(as of March 31, 2017)
Consolidated Subsidiaries of The Hokuetsu Bank, Ltd.
Name of Companies Type of Business Capital
(Million yen)
Voting Share (%)
The Hokuetsu Leasing Co., Ltd. Leasing 100 100
The Hokuetsu Card, Ltd. Credit Guarantee Business
Credit Card Business 20 100
The Hokuetsu Credit Guarantee Co., Ltd. Credit Guarantee Business 210 100
The Hokugin Economic Research Institute, Ltd.
Research and investigation as well as provision of information on
socioeconomic issues
