The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Consolidated Balance Sheets As of March 31, 2014 and 2013 Assets: Total assets

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2 The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Consolidated Balance Sheets As of March 31, 2014 and 2013 U.S. dollars (Note 1) Assets: Cash and due from banks (Note 3) 133,151 57,979 $ 1,293,737 Call loans and bills bought 22,290 57, ,583 Other debt purchased ,869 Trading account securities Securities (Notes 4 and 8) 513, ,304 4,992,892 Loans and bills discounted (Notes 5 and 13) 1,831,648 1,786,996 17,796,817 Foreign exchange (Note 6) 4,750 4,593 46,154 Other assets (Note 8) 15,752 28, ,053 Tangible fixed assets (Note 7) 14,939 13, ,151 Buildings 5,829 5,577 56,645 Land 7,550 6,637 73,360 Lease assets ,159 Other tangible fixed assets 1,130 1,156 10,986 Intangible fixed assets 2,344 3,048 22,779 Software 1,997 2,724 19,412 Lease assets ,158 Other intangible fixed assets ,208 Net defined benefit asset 2,570-24,974 Deferred tax assets (Note 19) 14,591 12, ,777 Customers' liabilities for acceptances and guarantees 4,234 4,355 41,143 Reserve for possible loan losses (20,998) (28,354) (204,023) Total assets 2,539,381 2,498,111 $ 24,673,348 Liabilities and Net Assets: Liabilities: Deposits (Notes 8 and 9) 2,361,589 2,334,850 $ 22,945,873 Negotiable certificates of deposit 28,207 20, ,067 Borrowed money (Notes 8 and 10) 12,426 9, ,738 Foreign exchange (Note 6) ,149 Bonds (Note 11) 30,600 30, ,318 Other liabilities (Note 12) 19,209 16, ,644 Reserve for employee bonuses 1,175 1,006 11,425 Reserve for employee retirement benefits (Note 14) Net defined benefit liability 7-69 Reserve for directors' retirement benefits ,240 Reserve for point card program Reserve for loss on interest repayments Reserve for loss on dormant deposit repayments ,602 Reserve for contingent loss ,587 Deferred tax liabilities (Note 19) Deferred tax liabilities for land revaluation Acceptances and guarantees 4,234 4,355 41,143 Total liabilities 2,458,307 2,417,306 $ 23,885,611 1

3 The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Consolidated Balance Sheets As of March 31, 2014 and 2013 U.S. dollars (Note 1) Net Assets Common stock 48,120 48,120 $ 467,552 Capital surplus 18,379 18, ,584 Retained earnings 19,031 14, ,911 Treasury stock (1,636) (1,649) (15,905) Total shareholders' equity 83,894 79, ,143 Net unrealized gain on available-for-sale securities, net of taxes (Note 4) 1,707 1,225 16,592 Excess for land revaluation (211) (211) (2,058) Foreign currency translation adjustments Remeasurements of defined benefit plans (4,655) - (45,230) Total accumulated other comprehensive income (3,148) 1,020 (30,589) Stock purchase rights Minority Interests ,413 Total net assets 81,073 80, ,736 Total Liabilities and Net Assets 2,539,381 2,498,111 $ 24,673,348 The accompanying notes are an integral part of these financial statements. 2

4 Income: The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Consolidated Statements of Operations Years Ended March 31, 2014 and 2013 U.S. dollars (Note 1) Interest income: 32,008 33,732 $ 310,999 Interest on loans and discounts 28,125 29, ,275 Interest on and dividends from securities 3,482 3,125 33,841 Interest on call loans and bills purchased ,257 Interest on receivables under securities borrowing transactions Interest on deposits with banks Other interest ,954 Fees and commissions 9,378 8,409 91,127 Other operating income 2,635 3,314 25,610 Other income (Note 15) 1,668 1,495 16,210 Expenses: Total income 45,691 46, ,948 Interest expenses: 2,390 3,076 23,227 Interest on deposits 1,357 1,964 13,185 Interest on negotiable certificates of deposit Interest on call money Interest on payables under securities lending transactions Interest on borrowed money ,615 Interest on corporate bonds ,848 Other interest Fees and commissions 1,878 1,767 18,249 Other operating expenses General and administrative expenses 32,087 33, ,773 Provision for loan losses 2,187 3,149 21,257 Other expenses (Note 16) 1,252 2,002 12,173 Total expenses 39,815 43, ,860 Income before income taxes and minority interests 5,875 3,269 57,088 Income Taxes: Current (Note 19) ,775 Deferred (Note 19) ,892 Total income taxes ,668 Income before minority interests 4,983 2,582 48,419 Minority interests in net income Net income 4,952 2,577 $ 48,117 The accompanying notes are an integral part of these financial statements. 3

5 The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Consolidated Statements of Comprehensive Income Years Ended March 31, 2014 and 2013 U.S. dollars (Note 1) Income before minority interests 4,983 2,582 $ 48,419 Other comprehensive income 490 1,862 4,762 Net unrealized gain on available-for-sale securities 446 1,837 4,337 Excess for land revaluation - (0) - Foreign currency translation adjustments Share of other comprehensive income of associates accounted for using equity method Total comprehensive income 5,473 4,445 53,182 Comprehensive income attributable to shareholders of the parent 5,439 4,433 52,847 Comprehensive income attributable to minority interests yen U.S. dollars Per share information (Note 18): Basic net income per share $ 1.24 Dividend on common stock The accompanying notes are an integral part of these financial statements. 4

6 Consolidated Statement of Changes in Net Assets (For the year ended March 31, 2014) The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Consolidated Statements of Changes in Net Assets Years Ended March 31, 2014 and 2013 Shareholders equity Common stock Capital surplus Retained earnings Treasury stock Total shareholders Equity Balance as of April 1, ,120 18,379 14,666 (1,649) 79,517 Changes during the reporting period Surplus dividend (Note) (582) (582) Net income 4,952 4,952 Acquisition of treasury stock (3) (3) Disposition of treasury stock (5) Changes of items other than those in equity capital during the reporting period (net amount) Total amount of changes during the reporting period - - 4, ,377 Balance as of March 31, ,120 18,379 19,031 (1,636) 83,894 Net unrealized gain (loss) on available-for-sale securities Accumulated other comprehensive income Excess for land Revaluation Foreign currency translation adjustment Total Remeasurements accumulated of defined benefit other plans comprehensive income Stock purchase rights Minority Interests Total net assets Balance as of April 1, ,225 (211) 6-1, ,805 Changes during the reporting period Surplus dividend (Note) (582) Net income 4,952 Acquisition of treasury stock (3) Disposition of treasury stock 10 Changes of items other than those in equity capital during the reporting period (4,655) (4,168) (4,108) (net amount) Total amount of changes during the reporting period (4,655) (4,168) Balance as of March 31, ,707 (211) 10 (4,655) (3,148) ,073 Note: These are profit appropriation items approved at the general meeting of shareholders held in June

7 Shareholders equity Common stock Capital surplus Retained earnings Treasury stock U.S. dollars Total shareholders equity Balance as of April 1, 2013 $ 467,552 $ 178,584 $ 142,500 $ (16,025) $ 772,612 Changes during the reporting period Surplus dividend (Note) (5,655) (5,655) Net income 48,117 48,117 Acquisition of treasury stock (30) (30) Disposition of treasury stock (51) Changes of items other than those in equity capital during the reporting period (net amount) Total amount of changes during the reporting period , ,531 Balance as of March 31, 2014 $ 467,552 $ 178,584 $ 184,911 $ (15,905) $ 815,143 Net unrealized gain (loss) on available-for-sale securities Accumulated other comprehensive income Excess for land Revaluation Foreign currency translation adjustment Total Remeasurements accumulated of defined benefit other plans comprehensive income Stock purchase rights U.S. dollars Minority Interests Total net assets Balance as of April 1, 2013 $ 11,907 $ (2,058) $ 61 $ - $ 9,910 $ 517 $ 2,084 $ 785,125 Changes during the reporting period Surplus dividend (Note) (5,655) Net income 48,117 Acquisition of treasury stock (30) Disposition of treasury stock 99 Changes of items other than those in equity capital during the reporting period 4, (45,230) (40,500) (39,920) (net amount) Total amount of changes during the reporting period 4, (45,230) (40,500) ,611 Balance as of March 31, 2014 $ 16,592 $ (2,058) $ 106 $ (45,230) $ (30,589) $ 769 $ 2,413 $ 787,736 Note: These are profit appropriation items approved at the general meeting of shareholders held in June

8 Consolidated Statement of Changes in Net Assets (For the year ended March 31, 2013) Shareholders equity Common stock Capital surplus Retained earnings Treasury stock Total shareholders Equity Balance as of April 1, ,120 18,380 12,673 (1,660) 77,513 Changes during the reporting period Surplus dividend (Note) (581) (581) Net income 2,577 2,577 Acquisition of treasury stock (1) (1) Disposition of treasury stock (0) (2) 12 9 Changes of items other than those in equity capital during the reporting period (net amount) Total amount of changes during the reporting period - (0) 1, ,003 Balance as of March 31, ,120 18,379 14,666 (1,649) 79,517 Net unrealized gain (loss) on available-for-sale securities Accumulated other comprehensive income Excess for land Revaluation Foreign currency translation adjustment Total accumulated Stock purchase other rights comprehensive income Minority Interests Total net assets Balance as of April 1, 2012 (623) (211) (0) (836) ,911 Changes during the reporting period Surplus dividend (Note) (581) Net income 2,577 Acquisition of treasury stock (1) Disposition of treasury stock 9 Changes of items other than those in equity capital during the reporting period 1,849 (0) 7 1, ,889 (net amount) Total amount of changes during the reporting period 1,849 (0) 7 1, ,893 Balance as of March 31, ,225 (211) 6 1, ,805 Note: These are profit appropriation items approved at the general meeting of shareholders held in June

9 The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Consolidated Statements of Cash Flows Years Ended March 31, 2014 and 2013 U.S. dollars (Note 1) Cash Flows from Operating Activities: Income before income taxes and minority interests 5,875 3,269 $ 57,088 Depreciation 1,687 2,053 16,395 Equity in earnings of affiliates (162) (52) (1,578) Decrease in reserve for possible loan losses (7,356) (6,400) (71,477) Increase (decrease) in reserve for employee bonuses 169 (43) 1,646 Increase in reserve for employee retirement benefits Increase in reserve for net defined benefit asset 7,019-68,205 Increase in reserve for net defined benefit liability 1-10 Increase (decrease) in reserve for directors' retirement benefits 20 (27) 202 Increase (decrease) in reserve for point card programs 2 (5) 24 Increase (decrease) in reserve for loss on interest repayments (0) 0 (0) Increase (decrease) in reserve for loss on dormant deposit repayments (17) 75 (173) Increase (decrease) in reserve for contingent loss 7 (32) 69 Interest income (32,008) (33,732) (310,999) Interest expenses 2,390 3,076 23,227 Net gain on securities (1,688) (2,229) (16,401) Net gain on foreign exchange (890) (1,187) (8,647) Net loss on sales of fixed assets Net increase (decrease)in trading securities (11) 53 (114) Net increase in loans and bills discounted (44,651) (25,673) (433,850) Net increase (decrease) in deposits 26,738 (13,597) 259,803 Net increase (decrease) in negotiable certificates of deposit 7,987 (54,984) 77,608 Net decrease in borrowed money (non-subordinated) (17) (18,799) (172) Net (increase) decrease in due from banks other than the Bank of Japan 21,726 (20,343) 211,100 Net decrease in call loans and bills bought and others 34,918 42, ,278 Net decrease in receivables under securities borrowing transactions - 30,784 - Net (increase) in foreign exchange (assets) (156) (841) (1,524) Net increase in foreign exchange (liabilities) Interest received 32,801 33, ,712 Interest paid (2,628) (3,373) (25,535) Other (1,575) 2,511 (15,304) Sub-total 50,296 (63,315) 488,692 Income taxes paid (319) (453) (3,107) Net Cash Provided by (Used in) Operating Activities 49,976 (63,768) 485,584 Cash Flows from Investing Activities: Purchases of securities (466,354) (984,968) (4,531,233) Proceeds from sales of securities 240, ,731 2,341,345 Proceeds from maturities of securities 272, ,187 2,643,827 Purchases of tangible fixed assets (1,766) (1,096) (17,159) Retirement of tangible fixed assets (40) (4) (388) Purchases of intangible fixed assets (203) (191) (1,978) Net Cash Provided by Investing Activities 44,709 61, ,411 8

10 U.S. dollars (Note 1) Cash Flows from Financing Activities: Increase in subordinated loans 3,000-29,148 Cash dividends paid (580) (580) (5,641) Dividends paid to minority shareholders (0) (0) (6) Purchase of treasury stock (3) (1) (30) Proceeds from sales of treasury stock Repayments of lease obligations (210) (230) (2,048) Net Cash Provided by (Used in) Financing Activities 2,205 (803) 21,429 Effect of Exchange Rate Changes on Cash and Cash Equivalents Net Change in Cash and Cash Equivalents 96,897 (2,907) 941,488 Cash and Cash Equivalents at Beginning of Year 26,084 28, ,445 Cash and Cash Equivalents at End of Year (Note 3) 122,982 26,084 $ 1,194,933 The accompanying notes are an integral part of these financial statements. 9

11 The Tokyo Tomin Bank, Limited and its Consolidated Subsidiaries Notes to Consolidated Financial Statements 1. Basis of Presentation The accompanying consolidated financial statements of Tokyo Tomin Bank, Limited (the Bank ) and consolidated subsidiaries are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards, and are compiled from the consolidated financial statements prepared by the Bank as required by the Financial Instruments and Exchange Law of Japan. The accompanying consolidated financial statements are not intended to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan. The accompanying consolidated balance sheets, the related consolidated statements of operations and cash flows have been compiled from the consolidated financial statements, which were filed with the Financial Services Agency as required by the Japanese Financial Instruments and Exchange Law. For the convenience of readers outside Japan, certain items presented in the consolidated financial statements filed with the Financial Services Agency have been reclassified. Furthermore, certain Japanese yen balances are converted into U.S. dollars at to $1, the effective exchange rate prevailing at March 31, This conversion, however, should not be construed as implying that the Japanese yen amounts have been, or could have been, translated, realized, or settled in U.S. dollars at that or any other exchange rate. The amounts in Japanese yen are presented in millions of yen by rounding down figures, except where stated otherwise. Accordingly, the sum of each amount appearing in the accompanying consolidated financial statements and the notes thereto may not be equal to the sum of the individual account balances. 2. Summary of Significant Accounting Policies a Consolidation (i) Scope of consolidation The scope of consolidation was determined based on the Bank s control and influence over the decision-making body of the investees as well as its voting shares as described below: Subsidiaries: Subsidiaries are generally companies in which the Bank holds (1) directly and/or indirectly, more than 50% of the voting shares, or (2) directly and/or indirectly, 40% or more of the voting shares and has effective control over the decision-making body responsible for the business policies and financial and operating matters through personnel, finance, and other relationships, unless evidence to the contrary exists which shows that the Bank does not have such control. The consolidated subsidiaries were as follows: Tomingin Office Support Center Co., Ltd. Tomin Credit Guarantee Co., Ltd. Tomin Computer System Co., Ltd. Tomin Management Research Institute Co., Ltd. Tomin Card Co., Ltd. Tomin Business Consulting Shanghai Co., Ltd. Affiliates: Affiliates are companies other than subsidiaries in which the Bank holds (1) directly and/or indirectly, 20% or more of the voting shares, or (2) directly and/or indirectly, 15% or more of voting shares and is able to influence to a significant degree decision-making through personnel, financing, and other relationships, unless evidence to the contrary exists which shows that the Bank does not have such influence. The affiliate accounted for under the equity method was as follows: Tomin Leasing Co., Ltd. The number of subsidiaries and affiliates as of March 31, 2014 and 2013 was as follows: Consolidated subsidiaries 6 6 Affiliate (accounted for under the equity method) 1 1 Non-consolidated subsidiary - - Affiliates (not accounted for under the equity method)

12 (ii) Fiscal year-ends of consolidated subsidiaries Fiscal year-ends for the consolidated subsidiaries were as follows: December March The accompanying consolidated financial statements include the accounts of consolidated subsidiaries whose fiscal year-ends were December 31, 2014 and December 31, The accounts of these subsidiaries have been included after making appropriate adjustments for significant transactions during the period from their respective year-end dates to the date of the consolidated financial statements. b c Trading account securities Trading account securities are stated at market value. The cost of sales is determined by the moving-average method. Securities Held-to-maturity debt securities are stated at amortized cost using the moving-average method. Available-for-sale securities with market quotations are carried at market value at the balance sheet date (The cost of sales is determined by the moving average method.). Available-for-sale securities whose market values are considered to be extremely difficult to assess are stated at cost or amortized cost using the moving average method. Net unrealized gains or losses on available-for-sale securities, net of taxes, are recorded as a separate item in net assets. The amount of guarantee liabilities of the Bank for corporate bonds by private placement (Paragraph 3, Article 2 of the Financial Instruments and Exchange Law of Japan) of corporate bonds included in securities is 15,410 million ($149,736 thousand) and 15,987 million, respectively, as of March 31, 2014 and d e Derivatives Derivatives are carried at market value, with changes in market value included in the statements of operations for the period in which they arise. Tangible fixed assets (excluding lease assets) Depreciation of tangible fixed assets is computed as follows; Buildings : Straight-line method Others : Declining-balance method The useful lives of tangible fixed assets are principally as follows: Buildings : 6 to 50 years Others : 3 to 20 years Depreciation of tangible fixed assets of the consolidated subsidiaries is computed principally using the declining-balance method. In accordance with the Law concerning Revaluation of Land promulgated on March 31, 1998, land used for business was revalued as of March 31, 1998, and the unrealized gain was recorded in Excess for land revaluation in net assets, net of income taxes. Such revaluation, however, is permitted only once and will not be made at each consolidated fiscal year end. Under Paragraph 3, Article 3 of the enforcement ordinance for the law, the land price for the revaluation is determined based on the official notice prices assessed and published by the National Land Agency of Japan, after appropriate adjustments for the shape of the land and the timing of the assessment. Land used for business activities has been revalued on the basis prescribed by the Law Concerning Land Revaluation (Proclamation No. 34 dated March 31, 1998). As for the revaluation difference, the income tax account corresponding to the revaluation difference amount is included in liabilities as Deferred tax liabilities for land revaluation, and the revaluation difference, net of this deferred tax liability, is included in net assets as Excess for land revaluation. The date of revaluation was March 31, Revaluation method as stated in Paragraph 3, Article 3 of the Law Concerning Land Revaluation: The value of land is based on the official notice prices calculated as directed by public notification of the Commissioner of the National Tax Administration and as provided in the Law Concerning Public Notification of Land Prices, as stipulated in Nos. 1 and 2 in Article 2 of the Ordinance Implementing the Law Concerning Land Revaluation (Government Ordinance No. 119 dated March 31, 1998), after making reasonable adjustments. The difference between the revalued carrying amount and fair value of lands being revalued pursuant to Article 10 of the law was 187 million ($1,821 thousand) and 189 million, respectively, as of March 31, 2014 and

13 f g h Intangible fixed assets (excluding lease assets) Depreciation of intangible fixed assets is computed using the straight-line method. Costs of computer software developed or obtained for internal use is principally deferred and amortized using the straight-line method over the estimated useful lives of 5 years. Lease assets Depreciation of lease assets included in Tangible fixed assets and Intangible fixed assets, relating to finance lease transactions not involving the transfer of ownership is computed using the straight-line method over the lease period (deemed as the use life), and residual values are set at zero. Deferred assets Stock issue expenses of the Bank are charged to income as incurred. i Reserve for possible loan losses The Bank s reserve for possible loan losses is made in accordance with the internal write-off and provisioning criteria as follows: (i) The reserve for claims on debtors who are legally or substantially bankrupt is provided based on the amount remaining after deduction of the amount expected to be collected through the disposal of collateral or through the execution of guarantees. (ii) The reserve for claims on debtors who are not currently legally bankrupt, but who are likely to become bankrupt, is provided based on the amount required taking into account the overall solvency assessment of the amounts remaining after deduction of the amounts expected to be collected through the disposal of collateral or through the execution of guarantees. (iii) With regard to claims on debtors 1) who are not currently legally bankrupt but are likely to become bankrupt or who requires close monitoring as the Bank eased lending terms, 2) whose outstanding loan balances, net of the amounts collectible through the disposal of collateral or the execution of guarantee, exceed a certain threshold, and 3) whose cash flows from the collection of principal and interest can be reasonably estimated, the Bank s reserve for possible loan losses is calculated by the discount cash flow method and provided at the difference between the book value and the cash flows discounted at the pre-easing contractual interest rates. (iv) The reserve for claims on debtors other than the above is provided based on the default rate, calculated with reference to actual defaults arising during a defined period in the past. All claims have been reserved as outlined above in accordance with the following steps: based on criteria applicable to the self-assessment of assets, the primary assessment of self-assessment was carried out by sales branches, sales-related divisions at the headquarters, the competent department at the headquarters and affiliates, and the secondary assessment of self-assessment of the Bank and its affiliates was conducted by the Asset Assessment Office of the Loan Examination Division, which operates independently from the sales-related divisions, with cooperation from sales-related divisions. General reserve for possible loan losses of domestic subsidiaries is provided by taking into account actual loan loss ratios and other factors, and specific reserve for claims on debtors, including debtors who are not legally bankrupt but who are likely to become bankrupt, is provided at the amounts considered uncollectible after taking into account the recoverability of each item. j Reserve for employee bonuses Reserve for employee bonuses is provided for the payment of bonuses to employees based on estimated amounts of future payments attributable to the current consolidated fiscal year. k Reserve for Directors retirement benefits Reserve is made for the payments of retirement allowances to directors of the Bank based on an estimate of amount attributable for the term. l Reserve for point card program The reserve for point card program is provided to cover the obligation resulting from future utilization of points by holders of the credit card handled by one of the domestic consolidated subsidiaries. It is recorded as the amount the Bank deems necessary to post based on a reasonable estimate of the projected amount of points that would be utilized in the future. m Reserve for loss on interest repayments One of the domestic consolidated subsidiaries records the estimated repayment amount of loan interest based on the past return results to prepare for repayment claim for loan interest that exceeds the maximum interest rate under the Interest Limitation Law. Out of the estimated repayment amount, a portion to be paid for loans is recorded as the reserve for possible loan losses in the amount of 2 million($21 thousand) and 2 million, respectively, as of March 31, 2014 and

14 n o Reserve for loss on dormant deposit repayments The reserve for loss on dormant deposits repayments is provided for the reimbursement of dormant deposits which were recognized as profit to depositors, based on the estimated reimbursement loss in accordance with the past reimbursement results. Reserve for contingent loss The reserve for contingent loss is provided for the payment of charge of loans with guarantee from Credit Guarantee Corporations based on the estimated payment amount of charges in accordance with the past subrogation results. p Retirement benefit plans In calculating the projected benefit obligation, the straight-line basis is used to attribute the expected amount of benefit to each period up to the end of the year. Unrecognized prior service cost, unrecognized actuarial gains or losses, and unrecognized initial transition losses are expensed as follows. Prior service cost: Amortized as incurred on a straight-line basis over 3 years, a period shorter than the average remaining years of service of the employees. Unrecognized actuarial gains or losses are amortized on a straight-line basis over the period of 12 years from the year following the year in which they arise. The unrecognized initial transition losses of 11,663 million at April 1, 2000, which resulted from adopting a new accounting standard, have been amortized on straight-line basis over a period of 15 years from the year ended March 31, In calculating net defined benefit liability and net pension expenses, domestic consolidated subsidiaries adopt a simplified method where the projected benefit obligation is assumed to be equal to the benefits that would be payable if all eligible employees voluntarily terminated their employment at the end of the year. q Foreign currency translation The consolidated financial statements of the Bank are maintained in Japanese yen. Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates prevailing at the balance sheet date. Assets and liabilities of overseas consolidated subsidiaries are translated into Japanese yen at the exchange rates prevailing at the date of the consolidated financial statements. r s t Hedge accounting Hedging interest rate risk When accounting for interest rate risk hedges for financial assets and liabilities, the Bank applies deferred hedge accounting as stipulated in Treatment of Accounting and Auditing of Application Standard for Financial Instruments in the Banking Industry (JICPA Industry Audit Committee, Report No. 24; hereinafter Industry Audit Committee Report No. 24 ). The Bank performs the hedge effectiveness testing by grouping hedged items (such as deposits and loans) and the hedging instruments (such as interest swaps) by respective maturities. Cash and cash equivalents For the purpose of preparing the consolidated statements of cash flows, Cash and cash equivalents, which is included in Cash and due from banks in the consolidated balance sheets, consists of cash and due from the Bank of Japan. Consumption taxes Transactions subject to consumption tax and municipal consumption tax of the Bank and its consolidated subsidiaries are recorded exclusive of consumption taxes. However, non-deductible consumption tax arising on property is expensed when incurred. 13

15 u v Changes in accounting policy The Accounting Standard for Retirement Benefits (ASBJ Statement No. 26 of May 17, 2012; the Accounting Standard for Retirement Benefits ) and the Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25 of May 17, 2012; the Guidance on Accounting Standard for Retirement Benefits ) have been adopted from the end of the current consolidated fiscal year (excluding the stipulations of Article 35 of the Accounting Standard for Retirement Benefits and Article 67 of the Guidance on Accounting Standard for Retirement Benefits), and accordingly, the difference between retirement benefit obligations and plan asset has been recorded as a net defined benefit asset from the end of the current consolidated fiscal year. In accordance with transitional treatment as stipulated in Article 37 of the Accounting Standard for Retirement Benefits for the application of Accounting Standards for Retirement Benefits, unrecognized actuarial gains and losses and unrecognized prior service cost after tax effect adjustments have been recorded under remeasurements of defined benefit plans under accumulated other comprehensive income at the end of the current consolidated fiscal year. As a result, net defined benefit assets of 2,570 million ($24,974 thousand) were recorded at the end of the current consolidated fiscal year. In addition, deferred tax assets have increased by 2,577 million ($25,046 thousand) and accumulated other comprehensive income has decreased by 4,655 million ($45,230 thousand). Unapplied accounting standard 1. Accounting standard for retirement benefits (May 17, 2012) (1) Overview From the perspective of improving financial reporting and in consideration of international trends, these accounting standards were revised with a focus on the handling of unrecognized actuarial gains and losses and unrecognized prior service cost, the calculation of retirement benefit obligations and service cost, and increasing disclosure. (2) Scheduled application date Revisions in the calculation of retirement benefit obligations and service cost are scheduled to be applied from the beginning of the year beginning on April 1, (3)The impact of the application of these accounting standards For the effects of the application of the relevant accounting standard and guidance, retained earnings at the beginning of the consolidated fiscal year beginning on April 1, 2014 will increase by 260 million ($2,534 thousand). 2. Accounting standard for business combinations (September 13, 2013) (1) Overview The Accounting Standard for Business Combinations was revised with a focus on (i) the treatment of changes to a parent company s ownership of a subsidiary if control is maintained in the acquisition of additional shares of subsidiaries, (ii) the treatment of acquisition-related costs, (iii) provisional accounting treatment, and (iv) the disclosure of net income and changes from minority interests to non-controlling interests. (2) Scheduled application date The revised Accounting Standard for Business Combinations is scheduled to be applied from the beginning of the year beginning on April 1, (3) The impact of the application of these accounting standards The impact of the application of these accounting standards has not been determined. w Additional information The Bank revised its retirement benefit system on October 1, 2013, and a switch was made from a defined-benefit corporate pension plan to a cash balance-type pension plan using a point system. The prior service cost accompanying the transition to the new system are a negative 2,567 million ($24,945 thousand) (reduction in liabilities) and shall be amortized on a straight-line basis based on a fixed number of years (3 years) within the average remaining years of service of the employees. 14

16 3. Cash and Cash Equivalents The reconciliation of cash and due from banks in the consolidated balance sheets to cash and cash equivalents in the consolidated statements of cash flows as of March 31, 2014 and 2013 was as follows: U.S. dollars Cash and due from banks 133,151 57,979 $ 1,293,737 Time deposits (10,026) (31,396) (97,422) Ordinary deposits (17) (23) (174) Current deposits (124) (475) (1,206) Cash and cash equivalents 122,982 26,084 $ 1,194, Securities As of March 31, 2014 and 2013, carrying amounts of securities in the accompanying consolidated balance sheets were as follows: U.S. dollars Bonds and debentures 473, ,097 $ 4,602,530 Equity securities 25,123 24, ,111 Foreign securities 10,263 9,364 99,721 Other (Note) 4,788 1,046 46,529 Total 513, ,304 $ 4,992,892 Note: Securities of affiliated company were included in other securities amounting to 1,023 million ($9,945 thousand) and 844 million, respectively, as of March 31, 2014 and In addition to Securities in the balance sheet, Trading account securities, and other purchased monetary claims under Other debt purchased are included. There are no shares of the subsidiaries and shares of affiliated companies with market values as of March 31, 2014 and The aggregate carrying value and aggregate market value of quoted securities included in trading account securities and securities at March 31, 2014 and 2013 were as follows: 15

17 (i) Trading account securities 2014 U.S. dollars Book value Valuation gain Book value Valuation gain Trading account securities 45 (0) $ 437 $ (0) 2013 Book value Valuation gain Trading account securities 33 0 (ii) Bonds held to maturity Bonds of which fair value is exceeding consolidated balance sheet amount Type 2014 Book value Market value Difference Japanese government bonds 183, ,893 5,343 Municipal government bonds 42,490 42, Corporate bonds 18,935 19, Foreign bonds 10,263 10, Subtotal 255, ,410 6,171 Japanese government bonds 5,011 4,995 (16) Bonds of which fair value is Municipal government bonds not exceeding consolidated Corporate bonds balance sheet amount Foreign bonds Subtotal 5,011 4,995 (16) Total 260, ,406 6,154 Bonds of which fair value is exceeding consolidated balance sheet amount U.S. dollars Type 2014 Book value Market value Difference Japanese government bonds $ 1,783,422 $ 1,835,339 $ 51,916 Municipal government bonds 412, ,951 3,105 Corporate bonds 183, ,574 1,587 Foreign bonds 99, ,074 3,353 Subtotal 2,479,977 2,539,939 59,962 Japanese government bonds 48,697 48,538 (158) Bonds of which fair value is Municipal government bonds not exceeding consolidated Corporate bonds balance sheet amount Foreign bonds Subtotal 48,697 48,538 (158) Total $ 2,528,674 $ 2,588,478 $ 59,803 Bonds of which fair value is exceeding consolidated balance sheet amount Type 2013 Book value Market value Difference Japanese government bonds 144, ,887 5,469 Municipal government bonds 46,639 47, Corporate bonds 10,254 10, Foreign bonds 9,364 9, Subtotal 210, ,125 6,449 Japanese government bonds (0) Bonds of which fair value is Municipal government bonds not exceeding consolidated Corporate bonds 7,269 7,252 (17) balance sheet amount Foreign bonds Subtotal 7,761 7,743 (17) Total 218, ,868 6,431 16

18 (iii) Available-for-sale securities 2014 Type Acquisition Book value Difference cost Securities of which Stocks 12,132 9,155 2,977 consolidated balance sheet Bonds: 207, , amount is exceeding Japanese government bonds 126, , acquisition cost Municipal government bonds 7,157 7, Corporate bonds 74,160 73, Other: 1,615 1, Investment trust 1,615 1, Subtotal 221, ,563 3,879 Securities of which Stocks 9,815 11,141 (1,325) consolidated balance sheet Bonds: 16,009 16,133 (123) amount is not exceeding Japanese government bonds acquisition cost Municipal government bonds Corporate bonds 16,009 16,133 (123) Other: (12) Investment trust (12) Subtotal 26,262 27,724 (1,462) Total 247, ,287 2,417 U.S. dollars 2014 Type Book value Acquisition cost Difference Securities of which Stocks $ 117,885 $ 88,955 $ 28,930 consolidated balance sheet Bonds: 2,018,019 2,010,570 7,448 amount is exceeding Japanese government bonds 1,227,913 1,224,499 3,414 acquisition cost Municipal government bonds 69,542 69, Corporate bonds 720, ,847 3,716 Other: 15,695 14,378 1,317 Investment trust 15,695 14,378 1,317 Subtotal 2,151,601 2,113,904 37,696 Securities of which Stocks 95, ,251 (12,883) consolidated balance sheet Bonds: 155, ,759 (1,201) amount is not exceeding Japanese government bonds acquisition cost Municipal government bonds Corporate bonds 155, ,759 (1,201) Other: 4,245 4,371 (125) Investment trust 4,245 4,371 (125) Subtotal 255, ,382 (14,211) Total $ 2,406,772 $ 2,383,286 $ 23,485 17

19 2013 Type Acquisition Book value Difference cost Securities of which Stocks 9,267 6,767 2,499 consolidated balance sheet Bonds: 83,705 82, amount is exceeding Japanese government bonds 17,314 17, acquisition cost Municipal government bonds 7,132 7, Corporate bonds 59,258 58, Other: Investment trust Subtotal 93,271 89,936 3,334 Securities of which Stocks 12,484 13,856 (1,372) consolidated balance sheet Bonds: 229, ,442 (122) amount is not exceeding Japanese government bonds 214, ,998 (19) acquisition cost Municipal government bonds Corporate bonds 14,341 14,444 (103) Other: (5) Investment trust (5) Subtotal 242, ,544 (1,501) Total 335, ,481 1,833 (iv) Available-for-sale securities sold during the current fiscal year 2014 Sales Total gain Total loss Stocks 3,786 1,011 0 Bonds: 236, Japanese government bonds 234, Corporate bonds 2, Other: Total 240,855 1, U.S. dollars 2014 Sales Total gain Total loss Stocks $ 36,795 $ 9,830 $ 0 Bonds: 2,299,494 7, Japanese government bonds 2,276,053 7, Corporate bonds 23, Other: 3, Total $ 2,340,221 $ 17,390 $ Sales Total gain Total loss Stocks 3, Bonds: 321,935 1,656 1 Japanese government bonds 317,683 1,609 - Corporate bonds 4, Other: 1, Total 327,262 2,

20 (v) Securities for which impairment loss was posted For available-for-sale securities for which market value is available, and whose market value had dropped substantially compared to their cost of acquisition, we applied fair value in the consolidated balance sheet and recognized impairment loss for unrealized loss in the consolidated statement of operations (hereafter, referred to as recognition of impairment loss ) unless the securities in question was deemed to have a reasonable likelihood of returning to their acquisition cost level. Losses were recorded for stocks with market values included in other Securities in the consolidated balance sheets, and amounted to nil and 20 million for the year ended March 31, 2014 and 2013, respectively. The criteria for determining that fair value of available-for-sale securities with market value had dropped substantially are as follows: Securities whose market values as of the balance sheet date have dropped by 50% or more compared to their acquisition costs shall be written down to their current market values. Securities whose market values have dropped by at least 30%, but less than 50%, compared to their acquisition costs shall be written down to their current market values, with the exception of securities deemed to have a reasonable likelihood of returning to their acquisition cost levels within the foreseeable future. (vi) Net unrealized gain or loss on available-for-sale securities, net of taxes U.S. dollars Net unrealized gain 2,417 1,833 $ 23,485 Deferred tax assets (liabilities) (795) (657) (7,725) Sub-total 1,622 1,175 15,759 Minority interests Parent bank s interest in net unrealized gain of available-for-sale securities held by affiliates accounted for under the equity method ,008 Total 1,707 1,225 $ 16, Loans and Bills Discounted As of March 31, 2014 and 2013, classifications of loans and bills discounted were as follows: U.S. dollars Commercial bills discounted 32,174 39,484 $ 312,619 Loans on notes 76,172 74, ,117 Loans on deeds 1,566,227 1,536,188 15,217,916 Overdrafts 157, ,454 1,526,163 Total 1,831,648 1,786,996 $ 17,796,817 Loans to bankrupt companies amounted to 2,987 million ($29,024 thousand) and 7,865 million and other delinquent loans totaled 68,740 million ($667,900 thousand) and 71,659 million as of March 31, 2014 and 2013, respectively. Loans to bankrupt companies are non-accrual loans (excluding loans written off) for which circumstances apply as stated in the Implementation Ordinances for the Corporate Tax Laws (Government Ordinance No. 97, 1965). Non-accrual loans are loans having 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. Other delinquent loans are those loans other than loans to bankrupt companies and loans for which interest payments have been rescheduled with the objective of assisting these borrowers in management restructuring. Loans overdue for 3 months or more, other than loans to bankrupt companies and other delinquent loans, amounted to 339 million ($3,301 thousand) and 366 million as of March 31, 2014 and 2013, respectively. Restructured loans, i.e., loans bearing concessionary interest rates and loans with negotiated terms regarding the timing of interest and principal payments, amounted to 2,886 million ($28,043 thousand) and 3,013 million as of March 31, 2014 and 2013, respectively. The total amount of loans to bankrupt companies, other than delinquent loans, overdue for 3 months or more, and restructured loans amounted to 74,953 million ($728,270 thousand) and 82,903 million as of March 31, 2014 and 2013, respectively. 19

21 Bills discounted have been accounted for as financing transactions in accordance with the Report No. 24 of the Japanese Institute of Certified Public Accountants Industry Audit Committee. The Bank has rights to sell or pledge these bills without restrictions. The total face value of commercial bills received as a result of discounting was 31,817 million ($309,145 thousand) and 38,437 million, the total face value of documentary bills of exchange was 49 million ($482 thousand) and 139 million as of March 31, 2014 and 2013, respectively. The carrying amount of the loans in which the Bank participated under loan participation agreements and which are accounted for loans to obligors in accordance with JICPA Accounting Practice Committee No. 3 (June 1, 1995) as of March 31, 2014 and 2013 is as follows: U.S. dollars Loan participation 2,506 3,516 $ 24, Foreign Exchange As of March 31, 2014 and 2013, classifications of foreign exchange were as follows: U.S. dollars Assets: Due from banks 2,668 2,562 $ 25,923 Foreign bills of exchange purchased Foreign bills of exchange receivables 2,032 1,891 19,746 Total 4,750 4,593 $ 46,154 U.S. dollars Liabilities: Due to banks 1 1 $ 16 Foreign bills of exchange sold Foreign bills of exchange payable Total $ 1, Tangible Fixed Assets Tangible fixed assets at March 31, 2014 and 2013 consisted of the following: U.S. dollars Land 7,550 6,637 $ 73,360 Buildings 13,633 13, ,466 Lease assets 1,128 1,023 10,961 Other tangible fixed assets 9,152 9,384 88,927 Sub-total 31,464 30, ,714 Accumulated depreciation (16,525) (16,396) (160,562) Total 14,939 13,835 $ 145,151 Advanced accumulated depreciation amounted to 216 million ($2,108 thousand) and 216 million as of March 31, 2014 and 2013, respectively. 20

22 8. Assets Pledged As of March 31, 2014 and 2013, assets pledged as collateral were as follows: U.S. dollars Securities 46,704 46,657 $ 453,789 Liabilities related to the above pledged assets were as follows: U.S. dollars Deposits 3,119 2,278 $ 30,308 Borrowed money In addition, securities totaling 33,851 million ($328,906 thousand), and 35,327 million as of March 31, 2014 and 2013, respectively, were pledged as collateral for settlement of exchange, etc. or as variation margin. Other assets included lease deposits of 4,092 million ($39,762 thousand) and 4,193 million as of March 31, 2014 and 2013, respectively. 9. Deposits As of March 31, 2014 and 2013, classifications of deposits were as follows: U.S. dollars Current deposits 166, ,134 $ 1,613,074 Ordinary deposits 907, ,336 8,817,987 Savings deposits 18,424 18, ,013 Deposits at notice 18,984 17, ,461 Time deposits 1,144,824 1,171,464 11,123,438 Other deposits 105, ,849 1,027,897 Total 2,361,589 2,334,850 $ 22,945, Borrowed Money Subordinated borrowings included in borrowed money amounted to 12,000 million ($116,595 thousand) and 9,000 million as of March 31, 2014 and 2013, respectively. 11. Bonds The balance of subordinated bonds included in bonds was 30,600 million ($297,318 thousand) and 30,600 million as of March 31, 2014 and 2013, respectively. 12. Other Liabilities The principal components of other liabilities at March 31, 2014 and 2013 were as follows: U.S. dollars Accrued expenses 2,183 2,653 $ 21,213 Unearned revenue and other liabilities 17,026 13, ,430 Total 19,209 16,020 $ 186,644 21

23 13. Commitment Line Agreements Related to Overdrafts and Loans Commitment line agreements related to overdrafts and loans represent contracts with customers to extend overdrafts or loans up to agreed amounts in customers loan applications as long as there is no violation of any condition in the contracts. The unused amount of such commitment line agreements was 507,001 million ($4,926,171 thousand) and 535,089 million as of March 31, 2014 and 2013, respectively. Of these, commitment line agreements whose maturities are less than one year or whose contracts can be terminated without notice or conditions at the Bank s option amounted to 503,737 million ($4,894,457 thousand) and 530,626 million as of March 31, 2014 and 2013, respectively. The amount of unexercised commitment lines does not necessarily affect the future cash flows of the Bank and domestic consolidated subsidiaries because many such agreements are terminated without being exercised. Most of these contracts have provisions which stipulate the Bank and domestic consolidated subsidiaries may deny the extension of loans or decrease the commitment line in the event of certain changes in the financial markets, or certain issues in securing loans and other reasons. At the inception of the contracts, the Bank obtains real estate and securities as collateral where deemed necessary. In addition, the Bank and domestic consolidated subsidiaries performs periodic reviews of the customers business results based on internal rules, and takes necessary measures to reconsider conditions in contracts and may require additional collateral and guarantees. 14. Reserve for retirement benefits For the year ended March 31, Outline of retirement benefit plans The Bank has a corporate pension fund plan and a lump sum retirement benefit plan, but it transferred its defined benefit corporate pension plan to a quasi cash-balance pension plan on a point basis on October 1, There may be some cases that additional retirement allowances will be paid for the retired employees. In 1987, approximately 20% of the lump sum retirement benefits for employees, who paid insurance premiums for more than 20 years, were transferred to pension plans under the Japanese Welfare Pension Insurance Law. On April 1, 2004, the Bank received approval from the Ministry of Health, Labour and Welfare with respect to its application for exemption from the obligation for benefits related to future employee services under the substitutional portion of the Welfare Pension Fund Plan. During the year ended March 31, 2005, the Bank set up an employee retirement benefit trust to provide for the financial securities of its employees. 2.Defined benefit plan (i)adjustment table for the opening and closing balances of retirement benefit obligations U.S. dollars Projected benefit obligation at the beginning the year 33,848 $ 328,883 Service cost 839 8,157 Interest cost 487 4,732 Net actuarial losses 2,055 19,968 Retirement benefit payment amount (2,136) (20,757) Prior service cost (2,567) (24,945) Projected benefit obligation at the end of the year 32,526 $ 316,039 (ii) Adjustment table for the opening and closing balances of pension assets U.S. dollars Fair value of plan assets at the beginning the year 30,461 $ 295,973 Expected return on plan assets 684 6,652 Net actuarial losses 3,534 34,339 Contributions from the business owner 2,060 20,016 Retirement benefit payment amount (1,650) (16,037) Fair value of plan assets at the end of the year 35,089 $ 340,943 22