The Wakayama Bank Ltd

The staff of Wakayama Bank continued to work to increase the volume of assets under custody. As a result of these efforts, the year-end balance of investment trusts increased by ¥6.4 billion year-on-year to ¥10.1 billion, which brought the total value of assets under custody to ¥23.5 billion, an increase of ¥12.1 billion over the previous year. Deposits, on the other hand, declined by ¥36.2 billion from the previous year-end to ¥372.1 billion, partly owing to the shifting of funds from deposits to the assets under custody category. Wakayama Bank succeeded in moving further amounts of non-performing loans off its balance sheets, as a result of which the year-end balance of loans decreased by ¥45.2 billion year-on-year to ¥266.3 billion. Earnings Thanks to steps to increase the balance of assets under custody, including the sale of investment trusts, revenue from fees and commissions rose by ¥0.07 billion year-on-year, but as a result of a decline in the interest income on loans, in addition to the expenses involved in the integration of the two banks’ operations, total expenses increased. As a consequence, business profit on core banking operations decreased by ¥0.3 billion year-on-year to ¥2.7 billion. In the ordinary income/loss account, in spite of the recording of ¥0.9 billion in profits related to equity holdings, the bank posted a loss of ¥10.5 billion, compared with an ordinary income of ¥0.9 billion for the previous year. This is attributable to the posting of ¥12.5 billion in credit costs resulting from the application of stricter standards on the assessment of assets ahead of the merger. Moreover, the bank posted ¥2.2 billion in deferred income taxes with the aim of reducing its deferred tax assets. As a result, a net loss of ¥12.3 billion was recognized for the reporting period, compared with a net income of ¥0.8 billion for the previous year.

Address: 24 Shichibancho, Wakayama 640, Wakayama, Japan

Phone: +81 734 312171
FAX: +81 734 232285