DAISHI REPORT 2016 · ware and oil stoves. With a prosperous agricultural industry centering on...
46
Year ended March 31, 2016 DAISHI REPORT 2016
Transcript of DAISHI REPORT 2016 · ware and oil stoves. With a prosperous agricultural industry centering on...
Year ended March 31, 2016
DAISHI REPORT 2016
Based in Niigata Prefecture northwest of Tokyo, Daishi Bank is the oldest bank in Japan and the most influential financial institution in the prefecture. It was founded in 1873 as the Fourth National Bank of Japan.(As of March 31, 2015)
Profile (Consolidated)
Niigata Prefecture, Daishi Bank's target market
aerA
noitalupoP
PDG
Gross agricultural output
Industrial shipment per capital
Annual sales
Deposits ¥4,545 billion
Loans ¥2,949 billion
Total assets ¥5,342 billion
Credit rating A2 (Moody’s)
Head Office 1071-1, Higashiborimae-dori, 7-bancho, Chuo-ku, Niigata, Japan
Founded November 1873
Niigata, Our Target Market In Niigata Prefecture, basic technology indispensable formanufacturing is accumulating at an accelerated rate. Thisincludes mold-making, high-precision machining, casting,forging, and metal pressing. Niigata Prefecture is the numberone manufacturer in Japan of products such as metal table-ware and oil stoves.
With a prosperous agricultural industry centering on ricegrowing, it is a leading producer of rice and the number onemanufacturer of rice confectionery in Japan.
Contents 1 Message from the president
2 Medium-Term Business Plan
3 Digest
4 Financial Highlights
6 Daishi’s ESG
7 Environment
8 Social
18 Governance
21 Financial Data Corporate Data
22 Consolidated Balance Sheets
23 Consolidated Statements of Operations Consolidated Statements of Comprehensive Income
24 Consolidated Statements of Shareholders' Equity
25 Consolidated Statements of Cash Flows
26 Notes To Consolidated Financial Statements
41 Corporate Organization Directory Chart
42 Corporate Data
43 Company History
km2
thousands
billion
billion
billion
billion
12,584
2,305
¥8,687
¥244
¥4,642
¥6,354
( 5 th of 47 pref.)
(15 th of 47 pref.)
(14 th of 47 pref.)
(10 th of 47 pref.)
(23 th of 47 pref.)
(14 th of 47 pref.)
Nihonkai-Tohoku Expressway
Niigata Port
Niigata Airport Banetsu Expressway
Joetsu Shinkansen Line
Kanetsu Expressway
Joshinetsu Expressway
Hokuriku Expressway
Hokuriku Shinkansen Line
Naoetsu Port
Message from the President
Thank you very much for your continued support.In order to further increase your understanding of our company, we have created “DAISHI REPORT 2016,” and we would be grateful if you would give it a read.
We have set forth the evolution of the consulting function as the most important tactic of Step-Up 2nd Stage, the medium-term business plan that was started from FY2015, based on which we are implementing measures aimed at sustainable growth together with the region through contributions to the achievement of regional revitalization.
Specifically, we are strengthening our organizational structure including the establishment of a Local Revitalization Promotion HQ to support the achieve-ment of regional comprehensive strategy by each municipality in the prefecture while actively pursuing activities in order to broadly support the needs of customers, including cooperation with each municipal-ity to promote the use of unoccupied houses and moving, holding business panels in cooperation with other financial institutions, and technology proposal meetings with prefectural companies aimed at major manufacturers from other prefectures.
In the field of agriculture that is one of the core indus-tries of Niigata Prefecture, we have supported the establishment of six of nine qualified agricultural
business entities established in Niigata City that is designated as a special agricultural district; established the Daishi Food and Agriculture Growth Support Fund, and provided financial support for various efforts aimed at strengthening the competitiveness of food and agriculture in Niigata.
In the sales channel, we worked to expand our branch network through means such as the opening of the Nagaoka Nishi Loan Center in August 2015 and the opening of the Tokyo Minami Sales Office in April 2016. The Tokyo Minami Sales Office supports the expansion of sales channels by Niigata customers into the Tokyo metropolitan region by serving as a bridge between companies from Niigata Prefecture and companies from Tokyo, and by fulfilling a consulting function through means such as business matching.
In addition, we have actively pursued measures aimed at regional revitalization through financial products. With the “Future Support Private Placement Bond” that we began handling from 2013 which uses a portion of bond issuance fees for the donation of supplies such as books to regional schools jointly by the issuing company and our bank, over 230 donations have been made up until now. During FY2016, in addition to this “Future Support Private Placement Bond,” we newly established the “Regional Revitalization Private Place-ment Bond” with bond issuing companies that donates a portion of bond issuance fees to Niigata Prefecture and municipalities. We also handle the “Regional Revitalization Support Fund” that provides financial support for initiatives leading to regional revitalization, and we will continue to expand initiatives aimed at regional revitalization through financial products going forward.
Our bank will even further strengthen industry, govern-ment, academia, finance, labor, and media coordina-tion going forward and fulfill a consulting function in order to contribute to the achievement of regional revitalization.We ask for your continued support.July 2016
Fujio Namiki President
Advantage of transportation networks
■Expressways that extend in five directions (Kanetsu, Hokuriku, Joshinetsu, Banetsu and Nihonkai-Tohoku)
■Joetsu Shinkansen Line■Hokuriku Shinkansen Line ■Conventional railway line such as the Shinetsu Line Hokuriku Line, and Uetsu Line
■Niigata Airport Domestic routes: 7 routes (Sapporo, Narita, Chubu International, Komaki, Itami, Fukuoka, and Okinawa) International routes: 5 routes (Seoul, Harbin, Shanghai, Khabarovsk, Vladivostok)
■Niigata Port General port and functional port: International marine containers division Certified LNG (liquefied natural gas) division
■Naoetsu Port Functional port: Certified LNG (liquefied natural gas) division
(As of June 30, 2016)
1THE DAISHI BANK 2016 ANNUAL REPORT
Based in Niigata Prefecture northwest of Tokyo, Daishi Bank is the oldest bank in Japan and the most influential financial institution in the prefecture. It was founded in 1873 as the Fourth National Bank of Japan.(As of March 31, 2015)
Profile (Consolidated)
Niigata Prefecture, Daishi Bank's target market
aerA
noitalupoP
PDG
Gross agricultural output
Industrial shipment per capital
Annual sales
Deposits ¥4,545 billion
Loans ¥2,949 billion
Total assets ¥5,342 billion
Credit rating A2 (Moody’s)
Head Office 1071-1, Higashiborimae-dori, 7-bancho, Chuo-ku, Niigata, Japan
Founded November 1873
Niigata, Our Target Market In Niigata Prefecture, basic technology indispensable formanufacturing is accumulating at an accelerated rate. Thisincludes mold-making, high-precision machining, casting,forging, and metal pressing. Niigata Prefecture is the numberone manufacturer in Japan of products such as metal table-ware and oil stoves.
With a prosperous agricultural industry centering on ricegrowing, it is a leading producer of rice and the number onemanufacturer of rice confectionery in Japan.
Contents 1 Message from the president
2 Medium-Term Business Plan
3 Digest
4 Financial Highlights
6 Daishi’s ESG
7 Environment
8 Social
18 Governance
21 Financial Data Corporate Data
22 Consolidated Balance Sheets
23 Consolidated Statements of Operations Consolidated Statements of Comprehensive Income
24 Consolidated Statements of Shareholders' Equity
25 Consolidated Statements of Cash Flows
26 Notes To Consolidated Financial Statements
41 Corporate Organization Directory Chart
42 Corporate Data
43 Company History
km2
thousands
billion
billion
billion
billion
12,584
2,305
¥8,687
¥244
¥4,642
¥6,354
( 5 th of 47 pref.)
(15 th of 47 pref.)
(14 th of 47 pref.)
(10 th of 47 pref.)
(23 th of 47 pref.)
(14 th of 47 pref.)
Nihonkai-Tohoku Expressway
Niigata Port
Niigata Airport Banetsu Expressway
Joetsu Shinkansen Line
Kanetsu Expressway
Joshinetsu Expressway
Hokuriku Expressway
Hokuriku Shinkansen Line
Naoetsu Port
Message from the President
Thank you very much for your continued support.In order to further increase your understanding of our company, we have created “DAISHI REPORT 2016,” and we would be grateful if you would give it a read.
We have set forth the evolution of the consulting function as the most important tactic of Step-Up 2nd Stage, the medium-term business plan that was started from FY2015, based on which we are implementing measures aimed at sustainable growth together with the region through contributions to the achievement of regional revitalization.
Specifically, we are strengthening our organizational structure including the establishment of a Local Revitalization Promotion HQ to support the achieve-ment of regional comprehensive strategy by each municipality in the prefecture while actively pursuing activities in order to broadly support the needs of customers, including cooperation with each municipal-ity to promote the use of unoccupied houses and moving, holding business panels in cooperation with other financial institutions, and technology proposal meetings with prefectural companies aimed at major manufacturers from other prefectures.
In the field of agriculture that is one of the core indus-tries of Niigata Prefecture, we have supported the establishment of six of nine qualified agricultural
business entities established in Niigata City that is designated as a special agricultural district; established the Daishi Food and Agriculture Growth Support Fund, and provided financial support for various efforts aimed at strengthening the competitiveness of food and agriculture in Niigata.
In the sales channel, we worked to expand our branch network through means such as the opening of the Nagaoka Nishi Loan Center in August 2015 and the opening of the Tokyo Minami Sales Office in April 2016. The Tokyo Minami Sales Office supports the expansion of sales channels by Niigata customers into the Tokyo metropolitan region by serving as a bridge between companies from Niigata Prefecture and companies from Tokyo, and by fulfilling a consulting function through means such as business matching.
In addition, we have actively pursued measures aimed at regional revitalization through financial products. With the “Future Support Private Placement Bond” that we began handling from 2013 which uses a portion of bond issuance fees for the donation of supplies such as books to regional schools jointly by the issuing company and our bank, over 230 donations have been made up until now. During FY2016, in addition to this “Future Support Private Placement Bond,” we newly established the “Regional Revitalization Private Place-ment Bond” with bond issuing companies that donates a portion of bond issuance fees to Niigata Prefecture and municipalities. We also handle the “Regional Revitalization Support Fund” that provides financial support for initiatives leading to regional revitalization, and we will continue to expand initiatives aimed at regional revitalization through financial products going forward.
Our bank will even further strengthen industry, govern-ment, academia, finance, labor, and media coordina-tion going forward and fulfill a consulting function in order to contribute to the achievement of regional revitalization.We ask for your continued support.July 2016
Fujio Namiki President
Advantage of transportation networks
■Expressways that extend in five directions (Kanetsu, Hokuriku, Joshinetsu, Banetsu and Nihonkai-Tohoku)
■Joetsu Shinkansen Line■Hokuriku Shinkansen Line ■Conventional railway line such as the Shinetsu Line Hokuriku Line, and Uetsu Line
■Niigata Airport Domestic routes: 7 routes (Sapporo, Narita, Chubu International, Komaki, Itami, Fukuoka, and Okinawa) International routes: 5 routes (Seoul, Harbin, Shanghai, Khabarovsk, Vladivostok)
■Niigata Port General port and functional port: International marine containers division Certified LNG (liquefied natural gas) division
■Naoetsu Port Functional port: Certified LNG (liquefied natural gas) division
(As of June 30, 2016)
1THE DAISHI BANK 2016 ANNUAL REPORT
Major initiatives
April 2015
● Started the Medium-Term Business Plan “Step-Up 2nd Stage”● Established the Regional Revitalization Promotion Committee● Established the Regional Revitalization Support Fund, a fi nancing product to support initiatives that lead to regional revitalization● Released policy for returns to shareholders that aims for a shareholder return ratio of approximately 40%, combining
dividends and the acquisition of treasury shares
May ● Held Career Advancement Seminar for Working Women and Fund Use Seminar for Regional Revitalization
June
● Held Enjoy Summer Campaign with Tsubasa Project participating banks● Established Energy Saving Equipment Support Fund that has a carbon off set function● The Bank’s personnel designated as Niigata University Cooperation Coordinator by Niigata University● Signed Memorandum on Business Partnership Related to SME Growth Support, etc. with Shoko Chukin Bank● Established Regional Revitalization Promotion HQ
July ● Started project to support business using intellectual property rights by Tsubasa Project participating banks● Opened Daishi Academy
August ● Established Nagaoka Nishi Loan Center● Expanded Daishi Willink JCB Card and Daishi JCB Card local benefi ts service partners
September● Established Daishi Food and Agriculture Growth Support Fund that supports the use of agricultural, forestry, and
fi shery products from Niigata Prefecture● Received Niigata Labor Bureau Director’s Excellence Award in the Family Friendly Company Category of the FY2015
Excellent Equal Opportunity / Work and Family-Life Balance Promotion Companies Award
October
● Held China Business Seminar & Exchange Meeting in Shanghai 2015 and Niigata PPP/PFI Seminar● Announced increase in annual dividend by 1 yen per share to 9 yen dividend per share● Niigata Securities Co., Ltd. became a wholly-owned subsidiary and name changed to Daishi Securities Co., Ltd.● Signed the Tsubasa Financial System Advancement Alliance with Tsubasa Project participating banks● Released the Corporate Governance Guidelines
November
● Held Niigata University Business Plan Contest Presented by Daishi Bank, Economy and Foreign Exchange Trends Seminar, Daishi TPP (Trans-Pacifi c Strategic Economic Partnership Agreement) Seminar, Individual Business Meetings With Prefecture Souvenir Shops, Chinese Business Exchange Meeting, and Daishi Information Security Seminar
● Announced introduction of shareholder special benefi t plan and the start of a privilege items partnership project for the shareholder special benefi t plan by Tsubasa Project participating banks
December ● Held 2015 Bangkok Business Exchange Meeting by Tsubasa Project participating banks● Received the Environment Minister’s Award in the 5th Carbon Off set Awards
January 2016
Established the Daishi Housing Repurchase Loan as a joint loan with the Japan Trans-housing Institute in an aim to promote moving to Niigata Prefecture Signed Agreement on Promoting Moving with 17 municipalities in Niigata Prefecture
● Held the Daishi Seminar on Utilizing Measures of the Ministry of Economy, Trade and Industry and the Daishi Bank Collection Exhibition at the Niigata City Art Museum
● Singed Agreement on Comprehensive Partnership Relating to Regional Revitalization with Niigata Prefecture
February ● Signed Agreement on Partnership and Cooperation Relating to the Founder Support System with Murakami City
March
● Held the Food Eco-Plus! Niigata Food, Environment, and Health Exhibition Meeting and the Revision of the Medical Payment System Seminar
● Established Daishi Unoccupied House Utilization Remodeling Loan and Daishi Unoccupied House Utilization Reverse Mortgage Loan as loans to promote the use of unoccupied houses
● The Daishi Guaranty Co., Ltd. became a wholly-owned subsidiary● Announced transfer to a company with an audit and supervisory committee
April ● Held Daishi New Employee Seminar and the Fourth National Bank of Japan Exhibition at the Niigata City History Museum● Established Tokyo Minami Sales Offi ce
May● Issued Aiming to Achieve Regional Revitalization booklet that summarizes initiatives aimed at regional revitalization● Announced the establishment of the T&I Innovation Center, Co. Ltd. as a joint venture for fi nancial service planning and
development work using fi nancial technology by the six participating banks of the Tsubasa Financial System Advancement Alliance
Step-Up 2nd Stage～Further evolution for the 145th year～
Medium-Term Business Plan
April 2015 to March 2018Plan period
Evolution of Step-Up 140 Ⅰ . Top-line reform Ⅱ . Human resources capabilities and organizationalstrength Ⅲ . Risk management
Basic strategies
● → Initiatives for the local community ● → Initiatives for shareholders and investors ● → Strengthening organizations, structures, coordination, etc.
Providing an underpinning for the actual regional economy and contributing to the development of the regional society and customers
Role and mission of a regional bank
A part of our corporate philosophy is to“contribute to the region whi le being
appreciated and trusted as Niigata Prefecture’s best bank.”
Through the implementation of the Medium-Term Business Plan, we aim to fulfill our role and mission as a regional bank and achieve our corporate philosophy in order to grow in a sustainable manner with the region.
1. To contribute to the regionwhile being appreciated and trusted as Niigata Prefecture’s best bank2. To be a bank of strong and resolute action in the face of the challenge of change3. To be a creative, resourceful, and dynamic bank
Corporate philosophy
Corporate philosophy
Overcoming important
management issues
Medium-Term Business PlanBasic strategies
Core tacticsMeasures and goals for sales offices
Benchmark goals for management
－Thoroughly ensuring compliance－Employees acting based
on their own initiative
－Thoroughly ensuring compliance－Employees acting based
on their own initiative
important management issues
PDCAcycle
Benchmark goals for management
Category KPI: Benchmarks for management
Goals for the fi nal fi scal year of the plan (FY2017)
Scale
Total deposit balance (including NCD)
(average balance) ¥4,798 billion
Total loan balance (average balance) ¥3,216 billion
Revenues Core net business profi t ¥ 16.3 billion
Soundness Capital-to-assets ratio 10.41%
Step-Up 2nd Stage
Medium-Term Business Plan
Major Initiatives from FY2015
Digest
The basic strategy of this Medium-Term Business Plan is to evolve the former Medium-Term Business Plan “Step-up 140” and advance top-line reform in response to a management environment typified by factors such as population decline, the advance of lower fertility and population aging, the continuation of monetary easing, and the intensification of competition. Through the initiatives of this Medium-Term Business Plan, we aim to fulfill our mission as a regional bank of providing an underpinning for the actual regional economy and contributing to the development of the regional society and customers as we continuously grow along with the region.
2 3THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Major initiatives
April 2015
● Started the Medium-Term Business Plan “Step-Up 2nd Stage”● Established the Regional Revitalization Promotion Committee● Established the Regional Revitalization Support Fund, a fi nancing product to support initiatives that lead to regional revitalization● Released policy for returns to shareholders that aims for a shareholder return ratio of approximately 40%, combining
dividends and the acquisition of treasury shares
May ● Held Career Advancement Seminar for Working Women and Fund Use Seminar for Regional Revitalization
June
● Held Enjoy Summer Campaign with Tsubasa Project participating banks● Established Energy Saving Equipment Support Fund that has a carbon off set function● The Bank’s personnel designated as Niigata University Cooperation Coordinator by Niigata University● Signed Memorandum on Business Partnership Related to SME Growth Support, etc. with Shoko Chukin Bank● Established Regional Revitalization Promotion HQ
July ● Started project to support business using intellectual property rights by Tsubasa Project participating banks● Opened Daishi Academy
August ● Established Nagaoka Nishi Loan Center● Expanded Daishi Willink JCB Card and Daishi JCB Card local benefi ts service partners
September● Established Daishi Food and Agriculture Growth Support Fund that supports the use of agricultural, forestry, and
fi shery products from Niigata Prefecture● Received Niigata Labor Bureau Director’s Excellence Award in the Family Friendly Company Category of the FY2015
Excellent Equal Opportunity / Work and Family-Life Balance Promotion Companies Award
October
● Held China Business Seminar & Exchange Meeting in Shanghai 2015 and Niigata PPP/PFI Seminar● Announced increase in annual dividend by 1 yen per share to 9 yen dividend per share● Niigata Securities Co., Ltd. became a wholly-owned subsidiary and name changed to Daishi Securities Co., Ltd.● Signed the Tsubasa Financial System Advancement Alliance with Tsubasa Project participating banks● Released the Corporate Governance Guidelines
November
● Held Niigata University Business Plan Contest Presented by Daishi Bank, Economy and Foreign Exchange Trends Seminar, Daishi TPP (Trans-Pacifi c Strategic Economic Partnership Agreement) Seminar, Individual Business Meetings With Prefecture Souvenir Shops, Chinese Business Exchange Meeting, and Daishi Information Security Seminar
● Announced introduction of shareholder special benefi t plan and the start of a privilege items partnership project for the shareholder special benefi t plan by Tsubasa Project participating banks
December ● Held 2015 Bangkok Business Exchange Meeting by Tsubasa Project participating banks● Received the Environment Minister’s Award in the 5th Carbon Off set Awards
January 2016
Established the Daishi Housing Repurchase Loan as a joint loan with the Japan Trans-housing Institute in an aim to promote moving to Niigata Prefecture Signed Agreement on Promoting Moving with 17 municipalities in Niigata Prefecture
● Held the Daishi Seminar on Utilizing Measures of the Ministry of Economy, Trade and Industry and the Daishi Bank Collection Exhibition at the Niigata City Art Museum
● Singed Agreement on Comprehensive Partnership Relating to Regional Revitalization with Niigata Prefecture
February ● Signed Agreement on Partnership and Cooperation Relating to the Founder Support System with Murakami City
March
● Held the Food Eco-Plus! Niigata Food, Environment, and Health Exhibition Meeting and the Revision of the Medical Payment System Seminar
● Established Daishi Unoccupied House Utilization Remodeling Loan and Daishi Unoccupied House Utilization Reverse Mortgage Loan as loans to promote the use of unoccupied houses
● The Daishi Guaranty Co., Ltd. became a wholly-owned subsidiary● Announced transfer to a company with an audit and supervisory committee
April ● Held Daishi New Employee Seminar and the Fourth National Bank of Japan Exhibition at the Niigata City History Museum● Established Tokyo Minami Sales Offi ce
May● Issued Aiming to Achieve Regional Revitalization booklet that summarizes initiatives aimed at regional revitalization● Announced the establishment of the T&I Innovation Center, Co. Ltd. as a joint venture for fi nancial service planning and
development work using fi nancial technology by the six participating banks of the Tsubasa Financial System Advancement Alliance
Step-Up 2nd Stage～Further evolution for the 145th year～
Medium-Term Business Plan
April 2015 to March 2018Plan period
Evolution of Step-Up 140 Ⅰ . Top-line reform Ⅱ . Human resources capabilities and organizationalstrength Ⅲ . Risk management
Basic strategies
● → Initiatives for the local community ● → Initiatives for shareholders and investors ● → Strengthening organizations, structures, coordination, etc.
Providing an underpinning for the actual regional economy and contributing to the development of the regional society and customers
Role and mission of a regional bank
A part of our corporate philosophy is to“contribute to the region whi le being
appreciated and trusted as Niigata Prefecture’s best bank.”
Through the implementation of the Medium-Term Business Plan, we aim to fulfill our role and mission as a regional bank and achieve our corporate philosophy in order to grow in a sustainable manner with the region.
1. To contribute to the regionwhile being appreciated and trusted as Niigata Prefecture’s best bank2. To be a bank of strong and resolute action in the face of the challenge of change3. To be a creative, resourceful, and dynamic bank
Corporate philosophy
Corporate philosophy
Overcoming important
management issues
Medium-Term Business PlanBasic strategies
Core tacticsMeasures and goals for sales offices
Benchmark goals for management
－Thoroughly ensuring compliance－Employees acting based
on their own initiative
－Thoroughly ensuring compliance－Employees acting based
on their own initiative
important management issues
PDCAcycle
Benchmark goals for management
Category KPI: Benchmarks for management
Goals for the fi nal fi scal year of the plan (FY2017)
Scale
Total deposit balance (including NCD)
(average balance) ¥4,798 billion
Total loan balance (average balance) ¥3,216 billion
Revenues Core net business profi t ¥ 16.3 billion
Soundness Capital-to-assets ratio 10.41%
Step-Up 2nd Stage
Medium-Term Business Plan
Major Initiatives from FY2015
Digest
The basic strategy of this Medium-Term Business Plan is to evolve the former Medium-Term Business Plan “Step-up 140” and advance top-line reform in response to a management environment typified by factors such as population decline, the advance of lower fertility and population aging, the continuation of monetary easing, and the intensification of competition. Through the initiatives of this Medium-Term Business Plan, we aim to fulfill our mission as a regional bank of providing an underpinning for the actual regional economy and contributing to the development of the regional society and customers as we continuously grow along with the region.
2 3THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Financial Review（Non-Consolidated）Financial Highlights
2015
¥ 33,943
18,02098,074
1,893
47,02572,476
14,259
1,875,4732,812,1205,193,730
4,481,2434,861,915
32,776230,480331,814
40.728.00
2014
¥ 35,960
17,88297,109
1,761
47,35674,860
12,800
1,757,1272,748,5764,927,198
4,366,1544,635,598
32,776219,844291,599
36.228.00
(For the Years ended March 31)
Thousands ofU.S. DollarsMillions of Yen
Notes: (1) In this annual report, Japanese yen in millions are indicated with fractions omitted.
U.S. DollarsYen
Financial Highlights
Income
Interest on Loans and
Discounts.....................................
Interest and Dividends on
Securities.....................................
Total Income...................................
Expenses
Interest on Deposits .......................
General and Administrative
Expenses.....................................
Total Expenses...............................
Net Income ...................................
Assets
Securities........................................
Loans and Bills Discounted............
Total Assets ....................................
Liabilities
Deposits .........................................
Total Liabilities................................
Net Assets
Capital Stock ..................................
Shareholders’ Equity ......................
Total Net Assets .............................
Amounts per Share of Capital Stock
Net Income.....................................
Cash Dividends..............................
(2) The translations of the Japanese yen amounts into U.S. dollars are using the prevailing exchange rate at March 31, 2016, which was ¥112.68 to U.S. $1.
(Consolidated)
2016
¥ 32,275
18,852
99,627
1,991
46,797
75,508
14,467
1,784,598
2,949,815
5,342,251
4,545,036
5,022,567
32,776
245,571
319,683
42.04
9.00
2016
$ 286,430
167,313
884,165
17,677
415,316
670,113
128,398
15,837,760
26,178,693
47,410,818
40,335,791
44,573,726
290,885
2,179,367
2,837,092
0.37
0.07
Deposits increased mainly among customers making deposits in Niigata Prefecture, and the deposit balance (including negotiable certificates of deposit) as of March 31, 2016 was 4,563.4 billion yen.
As a result of actively responding to the financial needs of customers, the loan balance as of March 31, 2016 was 2,961.2 billion yen.
Although this must be at least 4% based on the Japanese domestic standards adopted by the Bank, the ratio is over 10% on both a non-consolidated and consolidated basis, and accordingly a high degree of soundness continues to be maintained.
An “AA-” rating (long-term issuer rating) has been acquired from Japan Credit Rating Agency (JCR) and an “A2” rating (long-term deposit rating) has been acquired from Moody’s.
The balance of nonperforming loans based on the Financial Reconstruction Law (assets subject to disclosure under the Financial Reconstruction Law) as of March 31, 2016 was 57.3 billion yen, and the ratio of nonperforming loans was 1.88%.The head office and sales offices are working together to provide customers with management improvement support.
Balance of deposits
Balance of loans
Capital-to-assets ratio
Credit rating
Status of nonperforming loans
43,787 44,952 45,634
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
20,000
10,000
40,000
30,000
50,000
0
(100 million yen)
27,636 28,259 29,612
0
10,000
20,000
30,000
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
(100 million yen)
Japanese standards4%
11.48%10.83%11.99%
11.13%12.21%
11.24%
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
Non-consolidated capital-to-assets ratio Consolidated capital-to-assets ratio
64.9 billion yen 64.6 billion yen57.3 billion yen
2.28％ 2.22％1.88％
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
Loans requiring managementNonperforming loan ratio Loans at riskLoans subject to bankruptcy or rehabilitation
CaaCa
C
BBaBaa
AaA
AaaDaishi Bank
A2
A3
A1
Daishi Bank
AA
AA--
AA+
D
CCCCCC
BBBBBB
AAA
AAA
(As of June 30, 2016)
●Japan Credit Rating Agency (JCR) ●Moody's
Financial Highlights (Consolidated)
Financial Highlights
4 5THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Financial Review（Non-Consolidated）Financial Highlights
2015
¥ 33,943
18,02098,074
1,893
47,02572,476
14,259
1,875,4732,812,1205,193,730
4,481,2434,861,915
32,776230,480331,814
40.728.00
2014
¥ 35,960
17,88297,109
1,761
47,35674,860
12,800
1,757,1272,748,5764,927,198
4,366,1544,635,598
32,776219,844291,599
36.228.00
(For the Years ended March 31)
Thousands ofU.S. DollarsMillions of Yen
Notes: (1) In this annual report, Japanese yen in millions are indicated with fractions omitted.
U.S. DollarsYen
Financial Highlights
Income
Interest on Loans and
Discounts.....................................
Interest and Dividends on
Securities.....................................
Total Income...................................
Expenses
Interest on Deposits .......................
General and Administrative
Expenses.....................................
Total Expenses...............................
Net Income ...................................
Assets
Securities........................................
Loans and Bills Discounted............
Total Assets ....................................
Liabilities
Deposits .........................................
Total Liabilities................................
Net Assets
Capital Stock ..................................
Shareholders’ Equity ......................
Total Net Assets .............................
Amounts per Share of Capital Stock
Net Income.....................................
Cash Dividends..............................
(2) The translations of the Japanese yen amounts into U.S. dollars are using the prevailing exchange rate at March 31, 2016, which was ¥112.68 to U.S. $1.
(Consolidated)
2016
¥ 32,275
18,852
99,627
1,991
46,797
75,508
14,467
1,784,598
2,949,815
5,342,251
4,545,036
5,022,567
32,776
245,571
319,683
42.04
9.00
2016
$ 286,430
167,313
884,165
17,677
415,316
670,113
128,398
15,837,760
26,178,693
47,410,818
40,335,791
44,573,726
290,885
2,179,367
2,837,092
0.37
0.07
Deposits increased mainly among customers making deposits in Niigata Prefecture, and the deposit balance (including negotiable certificates of deposit) as of March 31, 2016 was 4,563.4 billion yen.
As a result of actively responding to the financial needs of customers, the loan balance as of March 31, 2016 was 2,961.2 billion yen.
Although this must be at least 4% based on the Japanese domestic standards adopted by the Bank, the ratio is over 10% on both a non-consolidated and consolidated basis, and accordingly a high degree of soundness continues to be maintained.
An “AA-” rating (long-term issuer rating) has been acquired from Japan Credit Rating Agency (JCR) and an “A2” rating (long-term deposit rating) has been acquired from Moody’s.
The balance of nonperforming loans based on the Financial Reconstruction Law (assets subject to disclosure under the Financial Reconstruction Law) as of March 31, 2016 was 57.3 billion yen, and the ratio of nonperforming loans was 1.88%.The head office and sales offices are working together to provide customers with management improvement support.
Balance of deposits
Balance of loans
Capital-to-assets ratio
Credit rating
Status of nonperforming loans
43,787 44,952 45,634
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
20,000
10,000
40,000
30,000
50,000
0
(100 million yen)
27,636 28,259 29,612
0
10,000
20,000
30,000
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
(100 million yen)
Japanese standards4%
11.48%10.83%11.99%
11.13%12.21%
11.24%
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
Non-consolidated capital-to-assets ratio Consolidated capital-to-assets ratio
64.9 billion yen 64.6 billion yen57.3 billion yen
2.28％ 2.22％1.88％
FY ended March 31, 2014 FY ended March 31, 2015 FY ended March 31, 2016
Loans requiring managementNonperforming loan ratio Loans at riskLoans subject to bankruptcy or rehabilitation
CaaCa
C
BBaBaa
AaA
AaaDaishi Bank
A2
A3
A1
Daishi Bank
AA
AA--
AA+
D
CCCCCC
BBBBBB
AAA
AAA
(As of June 30, 2016)
●Japan Credit Rating Agency (JCR) ●Moody's
Financial Highlights (Consolidated)
Financial Highlights
4 5THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Ｅ Environment Environmental Measures 7
Ｓ Social
Measures for Regional Revitalization 8Together with the Local Community 10Support for Culture, Arts, and Development of the Next Generation 14Measures to Improve Customer Satisfaction 15Measures to Improve Market Value 16Measures to Improve Employee Satisfaction 17
Ｇ Governance（企業統治）Corporate Governance 18Risk Management Structure 19Compliance Structure 20
Daishi’s ESGWe aim to faithfully fulfill our corporate social responsibility going forward and to become a bank that shareholders, customers, and local communities feel secure and safe doing business with.
*1. “Niigata Credit” consists of credit certified by the prefecture as credit for the amount of CO2 absorbed for increasing the amount of forest in Niigata Prefecture (amount of greenhouse gas emissions reduced or absorbed), which makes it possible for companies to offset their CO2 emissions for use in environmental activities, etc.
*2. “Carbon offsetting” is an approach in which greenhouse gases such as CO2 emitted in daily life or economic activities are offset with the amount of greenhouse gases that are recognized as absorbed in another location.
We are continuing our efforts with green ATMs with a carbon offset function under the Niigata Credit program based on the concept of ATMs that contribute to the environment more the more they are used, for which we will offset 20g of CO2 every time these ATMs are used. As of March 31, 2016, 42 of these ATMs have been installed, and approximately 60 tons of CO2 have been offset since the initiative was commenced in August 2014.
Green ATMs with a carbon off set function
Receipt of Minister of Environment Award
In order to maintain green and abundant forests in the region in the future, since FY2009 Daishi Bank has participated in forest preservation promotion activities under the Ni igata Af forestat ion Support Project implemented by the Niigata prefectural government in the Daishi-no-Mori (Daishi Forest) in Agamachi, Higashikanbara-gun, Niigata Prefecture.
Daishi-no-Mori (Daishi Forest) creation
Executives and employees of our bank participated as volunteers in clean-up activities within Niigata City led by the city in order to present Niigata as a beautiful and clean city to the world in preparation for the G7 Niigata Agriculture Ministers' Meeting held in April 2016. On the day of the clean-up, approximately 100 execut ives , employees , and thei r fami ly members from branches within Niigata City, etc. dedicated themselves to cleaning activities.
Clean-up volunteer activities in preparation for the G7 Niigata Agriculture Ministers’ Meeting
● CONTENTS
Environment
Energy Saving Equipment Support Fund that has a carbon off set function
We will actively conduct regional environmental preservation activities including initiatives aimed at reducing our environmental footprint and the provision of environmentally-friendly financial products and services.
Environmental Measures
We established the Energy Saving Equipment Support Fund in FY2015 in order to support the energy saving measures of companies and work to reduce the environmental impact within Niigata Prefecture.
This product consists of a framework for further improving the environmental awareness of businesses that use it by offering a carbon offset (*2) function using Niigata Credit (*1).
Since it has been offered, it has been used by 67 companies as of March 31, 2016 to offset 41 tons of greenhouse gas.
Reflecting the strong reputation of initiatives aimed at reducing our environmental footprint including the Energy Saving Equipment Support Fund and Green ATMs, we received the top award entitled the Minister of Environment Award for both the FY2014 Ministry of the Environment’s Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century) and the FY2015 5th Carbon Offset Awards from the Ministry of the Environment.
6 7THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Ｅ Environment Environmental Measures 7
Ｓ Social
Measures for Regional Revitalization 8Together with the Local Community 10Support for Culture, Arts, and Development of the Next Generation 14Measures to Improve Customer Satisfaction 15Measures to Improve Market Value 16Measures to Improve Employee Satisfaction 17
Ｇ Governance（企業統治）Corporate Governance 18Risk Management Structure 19Compliance Structure 20
Daishi’s ESGWe aim to faithfully fulfill our corporate social responsibility going forward and to become a bank that shareholders, customers, and local communities feel secure and safe doing business with.
*1. “Niigata Credit” consists of credit certified by the prefecture as credit for the amount of CO2 absorbed for increasing the amount of forest in Niigata Prefecture (amount of greenhouse gas emissions reduced or absorbed), which makes it possible for companies to offset their CO2 emissions for use in environmental activities, etc.
*2. “Carbon offsetting” is an approach in which greenhouse gases such as CO2 emitted in daily life or economic activities are offset with the amount of greenhouse gases that are recognized as absorbed in another location.
We are continuing our efforts with green ATMs with a carbon offset function under the Niigata Credit program based on the concept of ATMs that contribute to the environment more the more they are used, for which we will offset 20g of CO2 every time these ATMs are used. As of March 31, 2016, 42 of these ATMs have been installed, and approximately 60 tons of CO2 have been offset since the initiative was commenced in August 2014.
Green ATMs with a carbon off set function
Receipt of Minister of Environment Award
In order to maintain green and abundant forests in the region in the future, since FY2009 Daishi Bank has participated in forest preservation promotion activities under the Ni igata Af forestat ion Support Project implemented by the Niigata prefectural government in the Daishi-no-Mori (Daishi Forest) in Agamachi, Higashikanbara-gun, Niigata Prefecture.
Daishi-no-Mori (Daishi Forest) creation
Executives and employees of our bank participated as volunteers in clean-up activities within Niigata City led by the city in order to present Niigata as a beautiful and clean city to the world in preparation for the G7 Niigata Agriculture Ministers' Meeting held in April 2016. On the day of the clean-up, approximately 100 execut ives , employees , and thei r fami ly members from branches within Niigata City, etc. dedicated themselves to cleaning activities.
Clean-up volunteer activities in preparation for the G7 Niigata Agriculture Ministers’ Meeting
● CONTENTS
Environment
Energy Saving Equipment Support Fund that has a carbon off set function
We will actively conduct regional environmental preservation activities including initiatives aimed at reducing our environmental footprint and the provision of environmentally-friendly financial products and services.
Environmental Measures
We established the Energy Saving Equipment Support Fund in FY2015 in order to support the energy saving measures of companies and work to reduce the environmental impact within Niigata Prefecture.
This product consists of a framework for further improving the environmental awareness of businesses that use it by offering a carbon offset (*2) function using Niigata Credit (*1).
Since it has been offered, it has been used by 67 companies as of March 31, 2016 to offset 41 tons of greenhouse gas.
Reflecting the strong reputation of initiatives aimed at reducing our environmental footprint including the Energy Saving Equipment Support Fund and Green ATMs, we received the top award entitled the Minister of Environment Award for both the FY2014 Ministry of the Environment’s Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century) and the FY2015 5th Carbon Offset Awards from the Ministry of the Environment.
6 7THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
In order to provide wide support for the development of high added value in the agriculture and food industries that are the core industries of Niigata Prefecture and which can expect further growth, we are conducting investments in sixth sector industrialization projects through the Daishi Food Industry Revitalization Fund jointly established with the Agriculture, Forestry and Fisheries Fund Corporation for Innovation, Value-chain and Expansion Japan, and we have also independently established the Daishi Food and Agriculture Growth Support Fund in order to offer speedy support to a broad range of businesses that will lead to increased competitiveness for the region.
By providing timely information in response to changes in the environment by holding seminars, we actively implement measures that effectively support the growth of our customers. Some of the themes of the seminars held are listed on the right.
We resolve issues and support revitalization in accordance with the characteristics of the region so people can live secure lives
【 PPP/PFI 】PPPs (public private partnerships) and PFIs (private finance initiatives) aim to provide efficient and effective public services through joint projects by the public and private sectors in order to develop public facilities and infrastructure.Through means such as holding seminars, information and know-how is shared between three parties that consist of local public bodies, private sector businesses, and financial institutions, while through means such as introduction support for local public bodies and participation support and finance offerings for local businesses we will create a framework that enables the flow of funds within the region.
【 UIJ turn support 】
We provide wide opportunities for business matching in order to support the expansion of sales and procurement channels for customers, including the Food Eco-Plus! Niigata Food, Environment, and Health Exhibition Meeting that is the largest exhibition and business meeting in the prefecture, as well as individual business panels with JR East Group companies and highway service area and parking area operators. By holding the Food Eco-Plus! event that was held in March 2016 jointly with the Niigata Shinkin Bank Association, we provided an opportunity for business discussions with even more customers in the prefecture. Furthermore, for the purpose of increasing the number of people that come into the prefecture, we invited 11 tour companies from outside the prefecture, and opportunities were provided to promote tourism, such as dedicated booths staffed by local governments in the prefecture that offered tastings of local foods, etc.
We offer a full support program from advance preparations to commencement of overseas transactions for companies in the prefecture that are looking to newly expand into overseas markets. With this program, in addition to a variety of seminars, we offer a program that corresponds to the individual needs of customers looking to expand overseas, including proposals on business panels, market research and sales channel development support, and support for payment settlement and hedging risks.
The Bridge Niigata exhibition and business talks space operated in Nihonbashi, Tokyo is being used as a venue for local governments to make an appeal for the UIJ turn movement (moving back from the big city to your local region). In addition, Bridge Niigata is also a venue for cooperation with local governments for distributing information related to moving promotion and the utilization of unoccupied housing.
In an effort to promote moving to Niigata Prefecture and the utilization of unoccupied houses in order to revitalize the region, we have entered an Agreement on Moving Promotion and Unoccupied House Utilization with local governments in Niigata Prefecture. Furthermore, in order to increase the effectiveness of this initiative we have newly launched the Sumai no Kakehashi (Housing Bridge) loan in partnership with the Japan Trans-housing Institute.
【 The Sumai no Kakehashi (Housing Bridge) regional revitalization loan 】
Supporting the promotion of moving to the region and living permanently in the region to create a new flow of people to Niigata Prefecture
The Daishi Bank Group is cooperating with comprehensive strategies of the national government and local governments, and working actively as an entire Group towards measures that lead to the virtuous cycle of towns, people, and jobs.
Tourism PR by local governments to tour companies
【 Business panels】
【 Overseas business support through the Global Market Development Challenge Program 】
【 Funds to support the agriculture and food industries 】
【 Distributing information through seminars 】
Linking Towns
Linking Jobs
・Japan External Trade Organization (JETRO)・Local public bodies, etc.
Global Market Development Challenge Program
External support organizations
Consultation with Daishi Bank
Offering a consulting menu up to commencement of overseas transactions
Cooperation and
collaborationOffering a consulting menu up to commencement of overseas transactions
Cooperation collaborationCooperation collaboration
〈Consulting menu〉・Market survey support・Sales channel development support, etc.
Overview of the Daishi Food and Agriculture Growth Support Fund scheme
The Bank and The Daishi Management Consulting Co., Ltd.
Members
Japan Finance CorporationJapan Professional Agriculture Total Support Organization (J-PAO)
Observers
Document survey
Investment decision
Investment Risk Assessment Committee
Daishi Food and AgricultureGrowth Support Fund
Business
Strengthening growth potential of
agriculture and food industry
●
● The Daishi Management Consulting Co., Ltd.
Investment
InvestmentDevelopment support
Seminar on Utilizing Measures of the Ministry of Economy,
Linking People
UIJ turn support (Bridge Niigata)
Promotion of moving to the prefecture
新潟での生活を応援！ お持ちの空き家を活用するローン
● Seminar on Utilizing Measures of the Ministry of Economy, Trade and Industry Introduction to manufacturing and energy saving subsidies● Information Security Seminar Introduction to countermeasures in response to information leaks from cyber attacks● TPP Seminar Explanation of the impact the TPP could have on SMEs● M&A Seminar Introduction to business succession and M&A case studies● Career Advancement Seminar for Working Women Introduction to the promotion of active participation of women and work-life balance initiatives● Fund Use Seminar Introduction to case studies using crowdfunding and sixth sector industrialization funding ● Nursing Care Management School Introduction to initiatives to strengthen the management base for nursing care providers
〈Seminar themes〉
SocialSocial
Measures for Regional RevitalizationRegional Revitalization
Signed Comprehensive Partnership Agreement aimed at achieving regional revitalization with Niigata Prefecture
Linking townsLinking peopleLinking jobs
● Industrial promotion, employment creation, expansion of exchange● Support with childcare, human resource development● Promoting ease of living and permanent residency
Main details of the Comprehensive Partnership Agreement
The Bank has signed a Comprehensive Partnership Agreement Related to Regional Revitalization with Niigata Prefecture as part of efforts to achieve regional revitalization.
The Bank aims to contribute to the achievement of regional revitalization by working together mutually in various fields related to regional revitalization based on comprehensive partnership and cooperation with Niigata Prefecture.
PPP/PFI seminar
Providing support so that people can feel secure working in Niigata Prefecture
8 9THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
In order to provide wide support for the development of high added value in the agriculture and food industries that are the core industries of Niigata Prefecture and which can expect further growth, we are conducting investments in sixth sector industrialization projects through the Daishi Food Industry Revitalization Fund jointly established with the Agriculture, Forestry and Fisheries Fund Corporation for Innovation, Value-chain and Expansion Japan, and we have also independently established the Daishi Food and Agriculture Growth Support Fund in order to offer speedy support to a broad range of businesses that will lead to increased competitiveness for the region.
By providing timely information in response to changes in the environment by holding seminars, we actively implement measures that effectively support the growth of our customers. Some of the themes of the seminars held are listed on the right.
We provide wide opportunities for business matching in order to support the expansion of sales and procurement channels for customers, including the Food Eco-Plus! Niigata Food, Environment, and Health Exhibition Meeting that is the largest exhibition and business meeting in the prefecture, as well as individual business panels with JR East Group companies and highway service area and parking area operators. By holding the Food Eco-Plus! event that was held in March 2016 jointly with the Niigata Shinkin Bank Association, we provided an opportunity for business discussions with even more customers in the prefecture. Furthermore, for the purpose of increasing the number of people that come into the prefecture, we invited 11 tour companies from outside the prefecture, and opportunities were provided to promote tourism, such as dedicated booths staffed by local governments in the prefecture that offered tastings of local foods, etc.
We offer a full support program from advance preparations to commencement of overseas transactions for companies in the prefecture that are looking to newly expand into overseas markets. With this program, in addition to a variety of seminars, we offer a program that corresponds to the individual needs of customers looking to expand overseas, including proposals on business panels, market research and sales channel development support, and support for payment settlement and hedging risks.
Tourism PR by local governments to tour companies
【 Business panels】
【 Overseas business support through the Global Market Development Challenge Program 】
【 Funds to support the agriculture and food industries 】
【 Distributing information through seminars 】
Linking Jobs
・Japan External Trade Organization (JETRO)・Local public bodies, etc.
Global Market Development Challenge Program
External support organizations
Consultation with Daishi Bank
Offering a consulting menu up to commencement of overseas transactions
Cooperation and
collaborationOffering a consulting menu up to commencement of overseas transactions
〈Consulting menu〉・Market survey support・Sales channel development support, etc.
Overview of the Daishi Food and Agriculture Growth Support Fund scheme
The Bank and The Daishi Management Consulting Co., Ltd.
Members
Japan Finance CorporationJapan Professional Agriculture Total Support Organization (J-PAO)
Observers
Document survey
Investment decision
Investment Risk Assessment Committee
Daishi Food and AgricultureGrowth Support Fund
Business
Strengthening growth potential of
agriculture and food industry
●
● The Daishi Management Consulting Co., Ltd.
Investment
InvestmentDevelopment support
Seminar on Utilizing Measures of the Ministry of Economy,Trade and Industry
● Seminar on Utilizing Measures of the Ministry of Economy, Trade and Industry Introduction to manufacturing and energy saving subsidies● Information Security Seminar Introduction to countermeasures in response to information leaks from cyber attacks● TPP Seminar Explanation of the impact the TPP could have on SMEs● M&A Seminar Introduction to business succession and M&A case studies● Career Advancement Seminar for Working Women Introduction to the promotion of active participation of women and work-life balance initiatives● Fund Use Seminar Introduction to case studies using crowdfunding and sixth sector industrialization funding ● Nursing Care Management School Introduction to initiatives to strengthen the management base for nursing care providers
〈Seminar themes〉
Social
Providing support so that people can feel secure working in Niigata Prefecture
9THE DAISHI BANK 2016 ANNUAL REPORT
Assumed major challenges and needs
for companiesContents of main solution
proposals
Declining or sluggish demand
Management improvement plan formulation support,holding seminars to improve management capabilities
Poor performance in core business
Regeneration support utilizing the Council to Support Revitalization of Small and Medium Enterprises
Financing ABL, utilization of business regeneration fund
A part of our corporate philosophy is to “contribute to the region while being appreciated and trusted as Niigata Prefecture’s best bank.” We believe that it is our social responsibility to offer management support to SMEs (including small-scale businesses) in the region and contribute to the regional revitalization through the performance of a financial intermediary function and consulting function and active participation in overall regional regeneration. In providing management support for customers and promoting regional revitalization, we will contribute to the development of the regional society and economy through the smooth provision of comprehensive financial services to customers with a focus on the following four priority items.
We position areas such as the environment, health, agriculture, and tourism as growth fields, in which we conduct various support measures for business expansion. We are also involved in overseas business support, business matching, and defined-contribution pension (401k) services. We support the expansion of sales channels by customers by actively holding business panels in Niigata prefecture, the Tokyo metropolitan area, and overseas.
Maturity
Foundation
Decline
Growth
Performance of a financial intermediary function including the smooth provision of fundscompanies
Active efforts aimed at regional revitalization
Active provision of information to the local community and users
Ⅰ
Ⅱ
ⅢⅣ
Performance of a management support and consulting function for client companies
Actively supporting client companies in accordance with their life stage SMEs in the region fulfill the important role as pillars that support the regional society and economy. The Bank will contribute to the development of the regional economy by actively providing management support based on the life stages of SMEs in the region.
Performance of a Management Support and Consulting Function for Client CompaniesⅠ
Assumed major challenges and needs
for companiesContents of main solution
proposals
Securing human resources
Human resources matching and development in cooperation with external organizations
Financing, hedging risks
Support for increased operating and capital funds, derivatives, interest rate swaps
Product development and developing higher
added value
Expert advice (energy saving diagnosis, industry-academia collaboration, general management)
We support companies aiming to become established or develop new business in consideration of their technologies, products, services, and the uniqueness and growth potential of their business model. In April 2015, we entered a three-party agreement with the Japan Finance Corporation and the Niigata Credit Guarantee Association to establish a structure capable of working together on foundation projects. In addition, we actively hold various seminars for customers considering business establishment or developing new businesses.
Assumed major challenges and needs
for companiesContents of main solution
proposals
Financing
Utilization of venture funds,institutional fi nancing, and guarantee systems
Development of sales channels
Utilization of business panels, business matching, and Bridge Niigata
Information and consultation environment
Provision of assistance information, provision of JETRO overseas information
FY 2015Finance for business establishment or developing new businesses: 249 projects
FY 2015Number of individual business panels: 746
In our business feasibility assessment initiatives, we define appraisal capabilities that serve as the foundation as the ability to appropriately judge the business valuation, growth potential, and business continuity potential of partner businesses, and conduct consulting based on the life stage of companies, and we are actively engaged in framework development and human resources development efforts. In June 2105, we reorganized our headquarters structure to establish a Sales Supervision Department that integrated the corporate and individual customer planning function and the Consulting Promotion Department that aggregated the consulting sectors, as well as launch the Sales Headquarters and Local Revitalization Promotion Headquarters that is composed of these two departments. Through joint business feasibility assessment initiatives by the headquarters and local branches, we will support productivity improvements in mid-tier companies that support the regional economy, industry, and employment and actively provide overall support for the region and industry.
Company Support Review
Meeting
Review meeting for all sales personnel involved to exchange opinions with the participation of the department or branch manager on the nature of the customer’s business, assumed management challenges, and solutions for these challenges
Actions to improve
fi eld assessment capabilities
Activities to resolve the challenges of customers and contribute to higher added value by sharing true management challenges and needs and off ering a funding and information intermediary function through interviews with customers utilizing sheets that summarize the main points for each industry
Partnership with the Regional Economy
Vitalization Corporation of Japan (REVIC)
Partnership for providing multifaceted management support by accepting human resources with specialized know-how dispatched from REVIC and utilizing REVIC knowledge
【 Main initiatives aimed at improving appraisal capabilities 】
Business Feasibility Assessment Initiatives
SocialSocial
Together with the Local CommunityCommunity-focused financial services
In partnership with the Daishi Management Consulting Co., Ltd. and various external organizations, we support business succession and M&A in order to resolve the management challenges of customers. In addition, we also offer various means of financing in lines with the needs of customers, including syndicated loans and private placement bonds.
Assumed major challenges and needs
for companiesContents of main solution
proposals
New market development
Support for new business development in partnership with external organizations
Succession and M&As
Business succession and M&A support
Financing
Support for various forms of fi nancing including syndicated loans, private placement bonds, liquidity solutions, and ABL
FY 2015Number of syndicated loan projects: 21
By sharing information on the customer’s management issues and challenges and studying them in a multifaceted manner, we propose optimal solutions and support the formulation of management improvement plans in accordance with the customer’s life stage. After plan formulation, we continue follow-up aimed at plan achievement through interviews with customers. In addition, we work towards the rapid regeneration of the customer’s business by performing a consulting function that encompasses strengthened partnerships with external organizations and external experts, utilization of optimal regeneration methods, and the design of frameworks.
FY 2015Number of management improvement plan formulation support projects completed: 642
Item name FY2015 results
Number of borrowers at the beginning of the term excluding normal borrowers Ａ 4,187
Of which, number of companies receiving management improvement support a 402
For which, number of companies that improved their borrower classifi cation at the end of the term b 57
Of which, number of companies that received plan formulation support Y 95
Management improvement support receipt rate a/A 9.6％Rank improvement rate b/a 14.2％Management improvement plan formulation support rate Y/a 23.6％
10 11THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Assumed major challenges and needs
for companiesContents of main solution
proposals
Declining or sluggish demand
Management improvement plan formulation support,holding seminars to improve management capabilities
Poor performance in core business
Regeneration support utilizing the Council to Support Revitalization of Small and Medium Enterprises
Financing ABL, utilization of business regeneration fund
A part of our corporate philosophy is to “contribute to the region while being appreciated and trusted as Niigata Prefecture’s best bank.” We believe that it is our social responsibility to offer management support to SMEs (including small-scale businesses) in the region and contribute to the regional revitalization through the performance of a financial intermediary function and consulting function and active participation in overall regional regeneration. In providing management support for customers and promoting regional revitalization, we will contribute to the development of the regional society and economy through the smooth provision of comprehensive financial services to customers with a focus on the following four priority items.
We position areas such as the environment, health, agriculture, and tourism as growth fields, in which we conduct various support measures for business expansion. We are also involved in overseas business support, business matching, and defined-contribution pension (401k) services. We support the expansion of sales channels by customers by actively holding business panels in Niigata prefecture, the Tokyo metropolitan area, and overseas.
Maturity
Foundation
Decline
Growth
Performance of a financial intermediary function including the smooth provision of fundscompanies
Active efforts aimed at regional revitalization
Active provision of information to the local community and users
Ⅰ
Ⅱ
ⅢⅣ
Performance of a management support and consulting function for client companies
Actively supporting client companies in accordance with their life stage SMEs in the region fulfill the important role as pillars that support the regional society and economy. The Bank will contribute to the development of the regional economy by actively providing management support based on the life stages of SMEs in the region.
Performance of a Management Support and Consulting Function for Client CompaniesⅠ
Assumed major challenges and needs
for companiesContents of main solution
proposals
Securing human resources
Human resources matching and development in cooperation with external organizations
Financing, hedging risks
Support for increased operating and capital funds, derivatives, interest rate swaps
Product development and developing higher
added value
Expert advice (energy saving diagnosis, industry-academia collaboration, general management)
We support companies aiming to become established or develop new business in consideration of their technologies, products, services, and the uniqueness and growth potential of their business model. In April 2015, we entered a three-party agreement with the Japan Finance Corporation and the Niigata Credit Guarantee Association to establish a structure capable of working together on foundation projects. In addition, we actively hold various seminars for customers considering business establishment or developing new businesses.
Assumed major challenges and needs
for companiesContents of main solution
proposals
Financing
Utilization of venture funds,institutional fi nancing, and guarantee systems
Development of sales channels
Utilization of business panels, business matching, and Bridge Niigata
Information and consultation environment
Provision of assistance information, provision of JETRO overseas information
FY 2015Finance for business establishment or developing new businesses: 249 projects
FY 2015Number of individual business panels: 746
In our business feasibility assessment initiatives, we define appraisal capabilities that serve as the foundation as the ability to appropriately judge the business valuation, growth potential, and business continuity potential of partner businesses, and conduct consulting based on the life stage of companies, and we are actively engaged in framework development and human resources development efforts. In June 2105, we reorganized our headquarters structure to establish a Sales Supervision Department that integrated the corporate and individual customer planning function and the Consulting Promotion Department that aggregated the consulting sectors, as well as launch the Sales Headquarters and Local Revitalization Promotion Headquarters that is composed of these two departments. Through joint business feasibility assessment initiatives by the headquarters and local branches, we will support productivity improvements in mid-tier companies that support the regional economy, industry, and employment and actively provide overall support for the region and industry.
Company Support Review
Meeting
Review meeting for all sales personnel involved to exchange opinions with the participation of the department or branch manager on the nature of the customer’s business, assumed management challenges, and solutions for these challenges
Actions to improve
fi eld assessment capabilities
Activities to resolve the challenges of customers and contribute to higher added value by sharing true management challenges and needs and off ering a funding and information intermediary function through interviews with customers utilizing sheets that summarize the main points for each industry
Partnership with the Regional Economy
Vitalization Corporation of Japan (REVIC)
Partnership for providing multifaceted management support by accepting human resources with specialized know-how dispatched from REVIC and utilizing REVIC knowledge
【 Main initiatives aimed at improving appraisal capabilities 】
Business Feasibility Assessment Initiatives
SocialSocial
Together with the Local CommunityCommunity-focused financial services
In partnership with the Daishi Management Consulting Co., Ltd. and various external organizations, we support business succession and M&A in order to resolve the management challenges of customers. In addition, we also offer various means of financing in lines with the needs of customers, including syndicated loans and private placement bonds.
Assumed major challenges and needs
for companiesContents of main solution
proposals
New market development
Support for new business development in partnership with external organizations
Succession and M&As
Business succession and M&A support
Financing
Support for various forms of fi nancing including syndicated loans, private placement bonds, liquidity solutions, and ABL
FY 2015Number of syndicated loan projects: 21
By sharing information on the customer’s management issues and challenges and studying them in a multifaceted manner, we propose optimal solutions and support the formulation of management improvement plans in accordance with the customer’s life stage. After plan formulation, we continue follow-up aimed at plan achievement through interviews with customers. In addition, we work towards the rapid regeneration of the customer’s business by performing a consulting function that encompasses strengthened partnerships with external organizations and external experts, utilization of optimal regeneration methods, and the design of frameworks.
FY 2015Number of management improvement plan formulation support projects completed: 642
Item name FY2015 results
Number of borrowers at the beginning of the term excluding normal borrowers Ａ 4,187
Of which, number of companies receiving management improvement support a 402
For which, number of companies that improved their borrower classifi cation at the end of the term b 57
Of which, number of companies that received plan formulation support Y 95
Management improvement support receipt rate a/A 9.6％Rank improvement rate b/a 14.2％Management improvement plan formulation support rate Y/a 23.6％
10 11THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
● Initiatives to facilitate financingThe Bank is sufficiently aware of its public and social responsibility and mission as a regional financial
institution, and it works to facilitate financing through the establishment of its Basic Policy on Financial Facilitation in order to fulfill an appropriate and active financial intermediary function while taking into consideration the soundness and appropriateness of business operations.
● Supporting new loans and changes in loan conditionsTWe respond sincerely when we receive consultations or applications from customers regarding matters
such as new loans and changes in loan conditions. When we receive a consultation or application, we do not make judgments merely on cosmetic aspects such as financial statements. We instead conduct appropriate reviews that aim to assess in detailed manner aspects including technological capabilities, sales capabilities, future potential, management conditions, and business values. If a customer has received loans from other financial institutions, we respond appropriately by making an effort to work together closely with these financial institutions (including credit guarantee associations) after gaining the consent of the customer.
● Utilization of financing methods that are not excessively dependent on real estate collateral or guaranteesTIn order to contribute to the growth of customers and improvements in management at customers, we
work to conduct detailed assessment of business values and management conditions including technological capabilities, sales capabilities, and future potential while proposing financing that is not excessively dependent on collateral or guarantees by using assets such as movable property or accounts receivable as necessary.
● Efforts in response to Guidelines on Management GuaranteesWe promote further financing that is not dependent on management guarantees after taking into full
consideration the intent and details of the Guidelines on Management Guarantees.
Holding a business plan contestWe jointly held a business plan contest with Niigata University for the purpose of
fostering the entrepreneurial spirit among students at Niigata University. After a screening of plan documents and presentations, the manufacturing and sales of a Niigata original rain shoe cover from an economics department student was selected for the grand prize. Following the holding of the contest, we have followed-up by creating an opportunity for students to receive advice on their business plans from major distributors.
Niigata University cooperation coordinatorsIn order to find solutions to the management challenges of
companies through the technologies, know-how, and human resources of Niigata University, 101 of the Bank’s employees that have received training at Niigata University have been assigned as cooperation coordinators that will serve as human resources with the role of linking companies and the university.
Through the active distribution of information, we will link the know-how and technology seeds of Niigata University with companies in order to find solutions to management issues.
Bank and securities partnership seminarsWe actively hold private seminars on a local branch unit with branch
managers of each local branch serving as lecturers. In addition, branch managers of Daishi Securities Co., Ltd. that became a wholly-owned subsidiary in October 2015 also serve as instructors who provide explanations on recent market conditions and asset management for our banking business and securities business in an integrated manner. Some of the themes of the seminars held are listed on the right.
Regional revitalization utilizing crowdfunding and Niigata BridgeWe work together with local governments to support the expansion of sales channels using crowdfunding in which funds
are procured from private investors nationwide over the Internet in order to utilize regional resources and conduct branding. Furthermore, at the Bridge Niigata exhibition and business talks space in Nihonbashi, Tokyo, efforts are made to deepen the interest of customers from across Japan towards Niigata through means such as direct dialogs between businesses and investors and events that deepen mutual understanding by allowing consumers and investors to come in touch with actual products.
○ Project to support business using intellectual propertyThe seven banks participating in the project (Daishi, Chiba, Chugoku,
Iyo, Toho, Hokuyo, and Hokkoku bank) are working together in businesses that use intellectual property for the purpose of expanding the use scope of patents and other forms of intellectual property beyond individual regions. By visualizing intellectual property such as patent information that is held by SMEs, etc. within the business regions (Niigata, Chiba, Okayama, Ehime, Fukushima, Hokkaido, and Ishikawa prefectures) of each bank through means such as reports and sharing this information between banks, we will support business expansion and new business creation for SMEs across regions.
Niigata University Business Plan Contest
Bridge Niigata
Crowdfunding service provider
Individual investors from
across Japan(Financing providers)
Business
(Financing customer)
Provision of products, services, etc. InvestmentProvision of products, Provision of products, Provision of products,
Local governments in Niigata
Directly linking businesses
and investors
Linking businesses
and investors over
the Internet
A staff member of the Bank’s being assigned as coordinator by the President of Niigata University
魅力あふれる地
へ
思い出作りに
出かけよう！
Intellectual property in the business area of each bank
Sharing intellectual property in each area of Daishi, Chiba, Chugoku, Iyo, Toho, Hokuyo, and Hokkoku bank
Regional revitalization by supporting the creation of new users and new ways of using intellectual property!
Visualization through reports, etc.
EhimePrefecture
OkayamaPrefecture
IshikawaPrefecture
NiigataPrefecture
ChibaPrefecture
FukushimaPrefecture
HokkaidoPrefecture
Performance of a Financial Intermediary Function Including the Smooth Provision of FundsⅡ
Active Eff orts Aimed at Regional RevitalizationⅢ
IV Active Provision of Information to the Local Community and UsersⅣ
While the deadline for the Act on Financial Facilitation for Small and Medium-sized Enterprises was reached at the end of March 2013, the entire Bank will continue to actively perform a consulting function and promote initiatives aimed at the facilitation of financing.
Initiatives to facilitate financing Consultation number for financial facilitation
0120-041151Opening hours: 9:00 to 17:00 on weekdays
(Excluding bank holidays and national holidays)
Initiatives in partnership with Tsubasa Project participating banks
SocialSocial
Status of utilization of the Guidelines on Management Guarantees (FY2015) (Unit: cases)
Number of new non-guaranteed loans 2,300
Number of new loans 20,382
Number of changes in guarantee terms 298
Number of guarantee contracts canceled 8
Numbers of loans with applications for changes in loan terms(Unit: number of loans) (Unit: cases)
Borrower End of March 2015
End of September2015
End of March 2016
SMEs 28,175 30,617 33,041
Housing loan borrowers 1,634 1,697 1,731
*The numbers and amounts are cumulative from December 4, 2009.
○ Enjoy Summer CampaignWe conducted a campaign that gave away a pair of
travel tickets worth 100,000 yen to 30 people through a drawing held among customers signing contracts that fulfilled the prescribed conditions for stock investment trusts, foreign currency-denominated time deposits, and yen-denominated time deposits. These travel tickets are characterized by the fact that they can be used for prefectures (Chiba, Okayama, Ehime, and Fukushima prefectures) where the head offices of the other banks participating in the campaign (Chiba, Chugoku, Iyo, and Toho banks) are located for the purpose of the revitalization of local regions and supporting the mutual sending of tourists to local tourist areas.
Distributing information through the websiteThrough our website, we actively distribute various
forms of information in a manner that is easy to understand on topics such as seminars and campaigns. In addition, we have incorporated the feedback we have received from customers to enhance the part of the website that introduces products and services, and to revise how information is displayed so that customers can more easily find the information they are looking for in an effort to improve convenience.
Daishi Bank's website URLhttp://www.daishi-bank.co.jp/
Daishi Bank Search
● Current state of and future prospects for the Japanese economy
● Main points regarding the global economy and the stock market
● Main investment points that can be learned from the global market environment● Getting started with asset management, etc.
〈Seminar themes〉
12 13THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
● Initiatives to facilitate financingThe Bank is sufficiently aware of its public and social responsibility and mission as a regional financial
institution, and it works to facilitate financing through the establishment of its Basic Policy on Financial Facilitation in order to fulfill an appropriate and active financial intermediary function while taking into consideration the soundness and appropriateness of business operations.
● Supporting new loans and changes in loan conditionsTWe respond sincerely when we receive consultations or applications from customers regarding matters
such as new loans and changes in loan conditions. When we receive a consultation or application, we do not make judgments merely on cosmetic aspects such as financial statements. We instead conduct appropriate reviews that aim to assess in detailed manner aspects including technological capabilities, sales capabilities, future potential, management conditions, and business values. If a customer has received loans from other financial institutions, we respond appropriately by making an effort to work together closely with these financial institutions (including credit guarantee associations) after gaining the consent of the customer.
● Utilization of financing methods that are not excessively dependent on real estate collateral or guaranteesTIn order to contribute to the growth of customers and improvements in management at customers, we
work to conduct detailed assessment of business values and management conditions including technological capabilities, sales capabilities, and future potential while proposing financing that is not excessively dependent on collateral or guarantees by using assets such as movable property or accounts receivable as necessary.
● Efforts in response to Guidelines on Management GuaranteesWe promote further financing that is not dependent on management guarantees after taking into full
consideration the intent and details of the Guidelines on Management Guarantees.
Holding a business plan contestWe jointly held a business plan contest with Niigata University for the purpose of
fostering the entrepreneurial spirit among students at Niigata University. After a screening of plan documents and presentations, the manufacturing and sales of a Niigata original rain shoe cover from an economics department student was selected for the grand prize. Following the holding of the contest, we have followed-up by creating an opportunity for students to receive advice on their business plans from major distributors.
Niigata University cooperation coordinatorsIn order to find solutions to the management challenges of
companies through the technologies, know-how, and human resources of Niigata University, 101 of the Bank’s employees that have received training at Niigata University have been assigned as cooperation coordinators that will serve as human resources with the role of linking companies and the university.
Through the active distribution of information, we will link the know-how and technology seeds of Niigata University with companies in order to find solutions to management issues.
Bank and securities partnership seminarsWe actively hold private seminars on a local branch unit with branch
managers of each local branch serving as lecturers. In addition, branch managers of Daishi Securities Co., Ltd. that became a wholly-owned subsidiary in October 2015 also serve as instructors who provide explanations on recent market conditions and asset management for our banking business and securities business in an integrated manner. Some of the themes of the seminars held are listed on the right.
Regional revitalization utilizing crowdfunding and Niigata BridgeWe work together with local governments to support the expansion of sales channels using crowdfunding in which funds
are procured from private investors nationwide over the Internet in order to utilize regional resources and conduct branding. Furthermore, at the Bridge Niigata exhibition and business talks space in Nihonbashi, Tokyo, efforts are made to deepen the interest of customers from across Japan towards Niigata through means such as direct dialogs between businesses and investors and events that deepen mutual understanding by allowing consumers and investors to come in touch with actual products.
○ Project to support business using intellectual propertyThe seven banks participating in the project (Daishi, Chiba, Chugoku,
Iyo, Toho, Hokuyo, and Hokkoku bank) are working together in businesses that use intellectual property for the purpose of expanding the use scope of patents and other forms of intellectual property beyond individual regions. By visualizing intellectual property such as patent information that is held by SMEs, etc. within the business regions (Niigata, Chiba, Okayama, Ehime, Fukushima, Hokkaido, and Ishikawa prefectures) of each bank through means such as reports and sharing this information between banks, we will support business expansion and new business creation for SMEs across regions.
Niigata University Business Plan Contest
Bridge Niigata
Crowdfunding service provider
Individual investors from
across Japan(Financing providers)
Business
(Financing customer)
Provision of products, services, etc. InvestmentProvision of products, Provision of products, Provision of products,
Local governments in Niigata
Directly linking businesses
and investors
Linking businesses
and investors over
the Internet
A staff member of the Bank’s being assigned as coordinator by the President of Niigata University
魅力あふれる地
へ
思い出作りに
出かけよう！
Intellectual property in the business area of each bank
Sharing intellectual property in each area of Daishi, Chiba, Chugoku, Iyo, Toho, Hokuyo, and Hokkoku bank
Regional revitalization by supporting the creation of new users and new ways of using intellectual property!
Visualization through reports, etc.
EhimePrefecture
OkayamaPrefecture
IshikawaPrefecture
NiigataPrefecture
ChibaPrefecture
FukushimaPrefecture
HokkaidoPrefecture
Performance of a Financial Intermediary Function Including the Smooth Provision of FundsⅡ
Active Eff orts Aimed at Regional RevitalizationⅢ
IV Active Provision of Information to the Local Community and UsersⅣ
While the deadline for the Act on Financial Facilitation for Small and Medium-sized Enterprises was reached at the end of March 2013, the entire Bank will continue to actively perform a consulting function and promote initiatives aimed at the facilitation of financing.
Initiatives to facilitate financing Consultation number for financial facilitation
0120-041151Opening hours: 9:00 to 17:00 on weekdays
(Excluding bank holidays and national holidays)
Initiatives in partnership with Tsubasa Project participating banks
SocialSocial
Status of utilization of the Guidelines on Management Guarantees (FY2015) (Unit: cases)
Number of new non-guaranteed loans 2,300
Number of new loans 20,382
Number of changes in guarantee terms 298
Number of guarantee contracts canceled 8
Numbers of loans with applications for changes in loan terms(Unit: number of loans) (Unit: cases)
Borrower End of March 2015
End of September2015
End of March 2016
SMEs 28,175 30,617 33,041
Housing loan borrowers 1,634 1,697 1,731
*The numbers and amounts are cumulative from December 4, 2009.
○ Enjoy Summer CampaignWe conducted a campaign that gave away a pair of
travel tickets worth 100,000 yen to 30 people through a drawing held among customers signing contracts that fulfilled the prescribed conditions for stock investment trusts, foreign currency-denominated time deposits, and yen-denominated time deposits. These travel tickets are characterized by the fact that they can be used for prefectures (Chiba, Okayama, Ehime, and Fukushima prefectures) where the head offices of the other banks participating in the campaign (Chiba, Chugoku, Iyo, and Toho banks) are located for the purpose of the revitalization of local regions and supporting the mutual sending of tourists to local tourist areas.
Distributing information through the websiteThrough our website, we actively distribute various
forms of information in a manner that is easy to understand on topics such as seminars and campaigns. In addition, we have incorporated the feedback we have received from customers to enhance the part of the website that introduces products and services, and to revise how information is displayed so that customers can more easily find the information they are looking for in an effort to improve convenience.
Daishi Bank's website URLhttp://www.daishi-bank.co.jp/
Daishi Bank Search
● Current state of and future prospects for the Japanese economy
● Main points regarding the global economy and the stock market
● Main investment points that can be learned from the global market environment● Getting started with asset management, etc.
〈Seminar themes〉
12 13THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
【 Established Tokyo Minami Sales Office 】 The Tokyo Minami Sales Office was newly established on April 18, 2016 as a base for mainly conducting financing for corporate clients. Through this establishment of the Tokyo Minami Sales Office, we aim to reallocate management resources to the Tokyo metropolitan area market where growth can be expected and strengthen earnings capabilities in this area in order to continually fulfill the role and mission of the Bank in Niigata Prefecture, that of “Providing an underpinning for the actual regional economy and contributing to the development of the regional society and customers.” At the Tokyo Minami Sales Office, we will offer a broad range of financial services to even more customers through means such as business matching with companies from Niigata Prefecture by effectively utilizing our customer base.*The Tokyo Minami Sales Office does not have a bank counter or ATM.
We have continued to hold the Daishi Life-up Concert that invites leading musician from Japan and overseas to provide high-quality music at a low price. The concert for FY2015 featured Maki Mori, Japan's internationally-known soprano singer, and Kyuhee Park, who is active around the world as a guitar player.
Daishi Life-up ConcertFuture Support Private Placement Bond
In order to support the mental and physical development of children, we hold Daishi Academy lessons that allow children to learn from professionals in various fields including financial education, culture and art, and sports.
Economics Koshien
We will support Niigata City Marathon 2016, which is a very popular event among everyone in the local community.
Niigata City Marathon 2016
We conduct a customer satisfaction survey in an aim to further improve the satisfaction levels of customers. In the survey results for FY2015, we received high scores from many customers for aspects such as the manners and attitude of employees towards customer service and support. We will broadly incorporate the feedback we receive from customers in the development of products and services in the future and in improvements to customer service and support as we work to further improve the satisfaction levels of customers. 【 Main improvements incorporating feedback from customers in FY2015 】 ● Extension of business hours for some non-branch ATMs and expanded installations of non-branch ATM ● Promotion of some barrier-free measures including the elimination of steps at branch entrances and adoption of western style toilets at branches
Implementation of a Customer Satisfaction Survey
【 Daishi Securities Co., Ltd. became a wholly-owned subsidiary 】 On October 1, 2015, Niigata Securities was made into a wholly-owned subsidiary, and its name was changed to Daishi Securities.We will exploit the synergies from the collaboration between our bank business and securities business even more than before to contribute to the development of the Niigata region by providing high-added value financial services that respond to the needs of customers.
Aiming for Further Improvements in Financial Services
The Bank’s network in the Tokyo metropolitan area
Tokyo Metropolis
Saitama Prefecture
Kanagawa Prefecture
Ikebukuro Branch
Yokohama Branch
Omiya Branch
Tokyo Branch
New!Tokyo Minami Sales Office
【 In partnership with Tsubasa Project participating banks: Working to create new financial services 】 The six banks (Daishi Bank, Chiba Bank, Chugoku Bank, Iyo Bank, Toho Bank, and Hokuyo Bank) entered the Tsubasa Financial System Advancement Alliance as an organization to conduct joint surveys and research aimed at the use of fintech, which is a type of cutting-edge IT technology in the financial field. In July 2016, T&I Innovation Center Co., Ltd. was established as a joint venture by the six participating banks and IBM Japan, Ltd. in order to realize financial services utilizing fintech. With the establishment of this new company, we aim to achieve the provision of products and services that are extremely convenient for customers.
Signing ceremony for the Tsubasa Financial System Advancement Alliance
Daishi Academy
Notice to our customers Revision and discontinuation of products and services accompanying the renewal of core banking systems We are currently conducting an overall renewal on core banking systems for purposes that include building systems that are both stable and scalable, improving the convenience of products and services, and reducing system costs.
The migration to the new system (a shared system) is scheduled for January 2017. Accompanying this migration, we may be forced to revise or abolish some products and services that are currently being used by customers. We would like to apologize for the inconvenience this could cause, as well as ask for your understanding of the situation and your continued support.
Companies
Social
Support for Culture, Arts, and Development of the Next GenerationCSR
Social
Measures to Improve Customer SatisfactionCSR
In an aim to “contribute to the region while being appreciated and trusted as Niigata Prefecture’s best bank,” we are actively engaged in financial and economic education and the promotion of regional culture and sports.
We will work to expand our network and enhance products and services in an aim to become a more accessible and convenient bank.
Through the Future Support Private Placement Bond that donates books, sporting goods, and other goods to local schools together with private placement bond issuing companies, we have supported the growth of over 230 schools and their students up until now.
The Bank
Schools
Future SupportPrivate
Placement Bond
The Niigata High School Team that won the Tenth National High School Student Finance and Economics Quiz Championships Economics Koshien Niigata Tournament that was sponsored by the Bank in December 2015 participated in the nationwide championships that were held in Tokyo in February 2016 (sponsored by the Association for the Promotion of Financial Literacy) as the representative for Niigata Prefecture and successfully managed to reach the top among 410 schools and 2,242 participants from across Japan. We have continued to hold the Economics Koshien Niigata Tournament since FY2013 in an effort to disseminate financial and economics education to high school students who will lead the next generation.
14 15THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
【 Established Tokyo Minami Sales Office 】 The Tokyo Minami Sales Office was newly established on April 18, 2016 as a base for mainly conducting financing for corporate clients. Through this establishment of the Tokyo Minami Sales Office, we aim to reallocate management resources to the Tokyo metropolitan area market where growth can be expected and strengthen earnings capabilities in this area in order to continually fulfill the role and mission of the Bank in Niigata Prefecture, that of “Providing an underpinning for the actual regional economy and contributing to the development of the regional society and customers.” At the Tokyo Minami Sales Office, we will offer a broad range of financial services to even more customers through means such as business matching with companies from Niigata Prefecture by effectively utilizing our customer base.*The Tokyo Minami Sales Office does not have a bank counter or ATM.
We have continued to hold the Daishi Life-up Concert that invites leading musician from Japan and overseas to provide high-quality music at a low price. The concert for FY2015 featured Maki Mori, Japan's internationally-known soprano singer, and Kyuhee Park, who is active around the world as a guitar player.
Daishi Life-up ConcertFuture Support Private Placement Bond
In order to support the mental and physical development of children, we hold Daishi Academy lessons that allow children to learn from professionals in various fields including financial education, culture and art, and sports.
Economics Koshien
We will support Niigata City Marathon 2016, which is a very popular event among everyone in the local community.
Niigata City Marathon 2016
We conduct a customer satisfaction survey in an aim to further improve the satisfaction levels of customers. In the survey results for FY2015, we received high scores from many customers for aspects such as the manners and attitude of employees towards customer service and support. We will broadly incorporate the feedback we receive from customers in the development of products and services in the future and in improvements to customer service and support as we work to further improve the satisfaction levels of customers. 【 Main improvements incorporating feedback from customers in FY2015 】 ● Extension of business hours for some non-branch ATMs and expanded installations of non-branch ATM ● Promotion of some barrier-free measures including the elimination of steps at branch entrances and adoption of western style toilets at branches
Implementation of a Customer Satisfaction Survey
【 Daishi Securities Co., Ltd. became a wholly-owned subsidiary 】 On October 1, 2015, Niigata Securities was made into a wholly-owned subsidiary, and its name was changed to Daishi Securities.We will exploit the synergies from the collaboration between our bank business and securities business even more than before to contribute to the development of the Niigata region by providing high-added value financial services that respond to the needs of customers.
Aiming for Further Improvements in Financial Services
The Bank’s network in the Tokyo metropolitan area
Tokyo Metropolis
Saitama Prefecture
Kanagawa Prefecture
Ikebukuro Branch
Yokohama Branch
Omiya Branch
Tokyo Branch
New!Tokyo Minami Sales Office
【 In partnership with Tsubasa Project participating banks: Working to create new financial services 】 The six banks (Daishi Bank, Chiba Bank, Chugoku Bank, Iyo Bank, Toho Bank, and Hokuyo Bank) entered the Tsubasa Financial System Advancement Alliance as an organization to conduct joint surveys and research aimed at the use of fintech, which is a type of cutting-edge IT technology in the financial field. In July 2016, T&I Innovation Center Co., Ltd. was established as a joint venture by the six participating banks and IBM Japan, Ltd. in order to realize financial services utilizing fintech. With the establishment of this new company, we aim to achieve the provision of products and services that are extremely convenient for customers.
Signing ceremony for the Tsubasa Financial System Advancement Alliance
Daishi Academy
Notice to our customers Revision and discontinuation of products and services accompanying the renewal of core banking systems We are currently conducting an overall renewal on core banking systems for purposes that include building systems that are both stable and scalable, improving the convenience of products and services, and reducing system costs.
The migration to the new system (a shared system) is scheduled for January 2017. Accompanying this migration, we may be forced to revise or abolish some products and services that are currently being used by customers. We would like to apologize for the inconvenience this could cause, as well as ask for your understanding of the situation and your continued support.
Companies
Social
Support for Culture, Arts, and Development of the Next GenerationCSR
Social
Measures to Improve Customer SatisfactionCSR
In an aim to “contribute to the region while being appreciated and trusted as Niigata Prefecture’s best bank,” we are actively engaged in financial and economic education and the promotion of regional culture and sports.
We will work to expand our network and enhance products and services in an aim to become a more accessible and convenient bank.
Through the Future Support Private Placement Bond that donates books, sporting goods, and other goods to local schools together with private placement bond issuing companies, we have supported the growth of over 230 schools and their students up until now.
The Bank
Schools
Future SupportPrivate
Placement Bond
The Niigata High School Team that won the Tenth National High School Student Finance and Economics Quiz Championships Economics Koshien Niigata Tournament that was sponsored by the Bank in December 2015 participated in the nationwide championships that were held in Tokyo in February 2016 (sponsored by the Association for the Promotion of Financial Literacy) as the representative for Niigata Prefecture and successfully managed to reach the top among 410 schools and 2,242 participants from across Japan. We have continued to hold the Economics Koshien Niigata Tournament since FY2013 in an effort to disseminate financial and economics education to high school students who will lead the next generation.
14 15THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
【 Status of leave acquisition for employees giving birth and employees with spouses giving birth 】FY 2013 FY 2014 FY 2015
Women Men Women Men Women MenNumber of employees utilizing childcare
leave system (or scheduled to do so) 28 0 24 0 32 13Acquisition rate 96.6％ 0.0％ 100.0％ 0.0％ 100.0％ 16.5％
For yearly paid holidays, we promote the acquisition of holiday through the establishment of various systems including continuous leave, season leave, power-up leave, and anniversary day leave, and the creation and management of holiday acquisition plans. In addition, in order to control long working hours and promote effective and well-balanced working styles, we regularly hold Bank-wide early work completion campaigns such as Bank-wide no overtime days and sales office no overtime days, and we also promote the use of the morning work system as part of efforts to revise working styles in order to achieve further improvements in productivity and reduce overtime work.
Creating Friendly Working Environment and Revising Working Styles
As a Niigata Prefecture Model Business for Low Fertility Countermeasures we work to support a balance between both work and child raising. Specifically, we work to support reinstatement at the workplace, improve awareness of a work-life balance, and enhance various programs that include assistance with transportation costs and babysitting costs for research observer participation while on childcare leave and the presentation of child product gift certificates to employees that have acquired childcare leave.
Selected as a Niigata Prefecture Model Business for Low Fertility Countermeasures
We received the Niigata Labor Bureau Director’s Excellence Award in the Family Friendly Company Category of the FY2015 Excellent Equal Opportunity / Work and Family-Life Balance Promotion Companies Award in recognition of our various initiatives related to support for a balance between work and child care or nursing care, including the development of child care and nursing care leave systems that go beyond statutory requirements.
Niigata Labor Bureau Director’s Excellence Award in the Family Friendly Company Category of the FY2015 Excellent Equal Opportunity / Work and Family-Life Balance Promotion Companies Award
Image of the work continuation support system from pregnancy to reinstatement6 weeks before
giving birth▼
Entering elementary school
▼
Entering junior high school
▼Childbirth
▼
8 weeks after giving birth
▼Age 1 and 6 months
▼Age 1
▼Age 3
▼
Our policy for returns to shareholders is a basic policy of continuing to provide stable returns to shareholders while giving consideration to the increase of internal reserves in order to strengthen the earnings base, and we aim for a rate of return to shareholders of about 40%, combining dividends and the acquisition of treasury shares. Going forward we will work to improve ROE mainly by strengthening net income as we aim for an ROE of at least 5% over the medium to long term.
Policy for Returns to Shareholders
Shareholder Privilege System
Annual dividends per share (unit: yen)
7 7
1
8
FY 2014
9
FY 2015FY 2013FY 2012
7
6
9
8
10
5
140 anniversary commemorative dividend of 1 yen1,499
37.6
2,517
1,471
34.7
2,833
999
27.6
2,815
2,634
40.2%
3,081
FY 2015FY 2013 FY 2014FY 20120
2,000
4,000
6,000
8,000
0
20
50
30
10
40
Acquisition of treasury sharesDividends(Millions of yen) （％）
Shareholder return ratio
Levels of return to shareholders
For the purpose of ensuring the transparency and soundness of management, and so that all of our stakeholders including customers, the local community, and shareholders have an understanding of our management situation, we are actively engaged in disclosure activities aimed at communication of our management situation and other information. We release the DAISHI REPORT and other publications through our website, and we also hold briefings on the company in Tokyo for institutional investors in an aim to improve corporate value. Furthermore, we also hold company briefings for individual investors in Niigata Prefecture where we have our main business base.
Disclosure Activities
Company briefing for institutional investors (Tokyo)
Daishi BankShareholder privilege catalog
The Bank has introduced a shareholder privilege system as a means of expressing thanks to shareholders for their everyday support and increasing the attractiveness in investing in our shares so that even more shareholders hold our shares over the long-term.
【 Applicable shareholders 】Shareholders that own at least 1,000 shares (1 unit) consecutively for at least one year*, with March 31 as the
base date shall be applicable.*“Consecutively for at least one year” applies for shareholders that have been registered at least three consecutive times with the
same shareholder number on our current shareholder register as of March 31 and September 30 every year.
【 Details of the shareholder privilege system 】Shareholders can select the specialty products and other goods they prefer based on the number of shares
they hold from either a catalog that mainly contains specialty products from Niigata Prefecture or a catalog jointly created by five participating banks of the Tsubasa Project (Daishi, Chiba, Chugoku, Iyo, and Toho banks).
Number of share held Local specialty products course
Tsubasa Project joint specialty products course
1,000 to 9,999 shares Specialty products worth 2,500 yen
10,000 shares or more Specialty products worth 6,000 yen
Pregnancy Childbirth Parental leave After reinstatement
Work-life balance support system
Before maternity leav During holiday or leave Before reinstatement After reinstatement
Support Plan for childbirth and child care
Prenatal and postnatal leave
Child care assistance benefi ts
Interview before maternity leave
Interview before reinstatement（ ）
Seminar on reinstatement support for people on leave（ ）
Workplace reinstatement program
Leave reinstatement career gathering
Spouse childbirth leave
Reduced work hours for child careLimitations on night work for child careExemption from overtime work for child careLimitations on overtime work for child care
Offi cer and part-time conversion system
Child nursing days off
Maternity health care
Parental leave Extension
Rework plan (re-employment system for resignees)
Seminar on reinstatement support for people on leave
Interview before reinstatement
Social
Measures to Improve Market Value: For ShareholdersCSR
Social
Measures to Improve Employee Satisfaction: Promotion of a Work-Life BalanceCSR
In consideration of public nature of the banking industry and in order to be able to continue providing to shareholders returns in the future, our policy for returns to shareholders is a basic policy of continuing to provide stable returns to shareholders while giving consideration to the increase of internal reserves in order to strengthen the earnings base.
We work to develop working environments that support the values of diversifying employees and allow each and every employee to work in a vibrant and lively manner while performing to the best of their ability.
16 17THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
【 Status of leave acquisition for employees giving birth and employees with spouses giving birth 】FY 2013 FY 2014 FY 2015
Women Men Women Men Women MenNumber of employees utilizing childcare
leave system (or scheduled to do so) 28 0 24 0 32 13Acquisition rate 96.6％ 0.0％ 100.0％ 0.0％ 100.0％ 16.5％
For yearly paid holidays, we promote the acquisition of holiday through the establishment of various systems including continuous leave, season leave, power-up leave, and anniversary day leave, and the creation and management of holiday acquisition plans. In addition, in order to control long working hours and promote effective and well-balanced working styles, we regularly hold Bank-wide early work completion campaigns such as Bank-wide no overtime days and sales office no overtime days, and we also promote the use of the morning work system as part of efforts to revise working styles in order to achieve further improvements in productivity and reduce overtime work.
Creating Friendly Working Environment and Revising Working Styles
As a Niigata Prefecture Model Business for Low Fertility Countermeasures we work to support a balance between both work and child raising. Specifically, we work to support reinstatement at the workplace, improve awareness of a work-life balance, and enhance various programs that include assistance with transportation costs and babysitting costs for research observer participation while on childcare leave and the presentation of child product gift certificates to employees that have acquired childcare leave.
Selected as a Niigata Prefecture Model Business for Low Fertility Countermeasures
We received the Niigata Labor Bureau Director’s Excellence Award in the Family Friendly Company Category of the FY2015 Excellent Equal Opportunity / Work and Family-Life Balance Promotion Companies Award in recognition of our various initiatives related to support for a balance between work and child care or nursing care, including the development of child care and nursing care leave systems that go beyond statutory requirements.
Niigata Labor Bureau Director’s Excellence Award in the Family Friendly Company Category of the FY2015 Excellent Equal Opportunity / Work and Family-Life Balance Promotion Companies Award
Image of the work continuation support system from pregnancy to reinstatement6 weeks before
giving birth▼
Entering elementary school
▼
Entering junior high school
▼Childbirth
▼
8 weeks after giving birth
▼Age 1 and 6 months
▼Age 1
▼Age 3
▼
Our policy for returns to shareholders is a basic policy of continuing to provide stable returns to shareholders while giving consideration to the increase of internal reserves in order to strengthen the earnings base, and we aim for a rate of return to shareholders of about 40%, combining dividends and the acquisition of treasury shares. Going forward we will work to improve ROE mainly by strengthening net income as we aim for an ROE of at least 5% over the medium to long term.
Policy for Returns to Shareholders
Shareholder Privilege System
Annual dividends per share (unit: yen)
7 7
1
8
FY 2014
9
FY 2015FY 2013FY 2012
7
6
9
8
10
5
140 anniversary commemorative dividend of 1 yen1,499
37.6
2,517
1,471
34.7
2,833
999
27.6
2,815
2,634
40.2%
3,081
FY 2015FY 2013 FY 2014FY 20120
2,000
4,000
6,000
8,000
0
20
50
30
10
40
Acquisition of treasury sharesDividends(Millions of yen) （％）
Shareholder return ratio
Levels of return to shareholders
For the purpose of ensuring the transparency and soundness of management, and so that all of our stakeholders including customers, the local community, and shareholders have an understanding of our management situation, we are actively engaged in disclosure activities aimed at communication of our management situation and other information. We release the DAISHI REPORT and other publications through our website, and we also hold briefings on the company in Tokyo for institutional investors in an aim to improve corporate value. Furthermore, we also hold company briefings for individual investors in Niigata Prefecture where we have our main business base.
Disclosure Activities
Company briefing for institutional investors (Tokyo)
Daishi BankShareholder privilege catalog
The Bank has introduced a shareholder privilege system as a means of expressing thanks to shareholders for their everyday support and increasing the attractiveness in investing in our shares so that even more shareholders hold our shares over the long-term.
【 Applicable shareholders 】Shareholders that own at least 1,000 shares (1 unit) consecutively for at least one year*, with March 31 as the
base date shall be applicable.*“Consecutively for at least one year” applies for shareholders that have been registered at least three consecutive times with the
same shareholder number on our current shareholder register as of March 31 and September 30 every year.
【 Details of the shareholder privilege system 】Shareholders can select the specialty products and other goods they prefer based on the number of shares
they hold from either a catalog that mainly contains specialty products from Niigata Prefecture or a catalog jointly created by five participating banks of the Tsubasa Project (Daishi, Chiba, Chugoku, Iyo, and Toho banks).
Number of share held Local specialty products course
Tsubasa Project joint specialty products course
1,000 to 9,999 shares Specialty products worth 2,500 yen
10,000 shares or more Specialty products worth 6,000 yen
Pregnancy Childbirth Parental leave After reinstatement
Work-life balance support system
Before maternity leav During holiday or leave Before reinstatement After reinstatement
Support Plan for childbirth and child care
Prenatal and postnatal leave
Child care assistance benefi ts
Interview before maternity leave
Interview before reinstatement（ ）
Seminar on reinstatement support for people on leave（ ）
Workplace reinstatement program
Leave reinstatement career gathering
Spouse childbirth leave
Reduced work hours for child careLimitations on night work for child careExemption from overtime work for child careLimitations on overtime work for child care
Offi cer and part-time conversion system
Child nursing days off
Maternity health care
Parental leave Extension
Rework plan (re-employment system for resignees)
Seminar on reinstatement support for people on leave
Interview before reinstatement
Social
Measures to Improve Market Value: For ShareholdersCSR
Social
Measures to Improve Employee Satisfaction: Promotion of a Work-Life BalanceCSR
In consideration of public nature of the banking industry and in order to be able to continue providing to shareholders returns in the future, our policy for returns to shareholders is a basic policy of continuing to provide stable returns to shareholders while giving consideration to the increase of internal reserves in order to strengthen the earnings base.
We work to develop working environments that support the values of diversifying employees and allow each and every employee to work in a vibrant and lively manner while performing to the best of their ability.
16 17THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Corporate Governance Organization Chart (as of June 24, 2016)
Offices
Head Office
Group companies
General Meeting of Shareholders
Accounting Auditors
Audit and Inspection Division(Internal audit department)
Board of Directors
Audit and Supervisory Committee
Executive Committee
Audit and oversightAudit and oversight
Instructions and orders
Cooperation and collaboration
Audits
ALM Committee
Risk Management CommitteeDiscussions, monitoring, etc. on important matters related to risk management
Discussions, monitoring, etc. on important matters related to asset liability management
Discussions, monitoring, etc. on important matters related to compliance
Compliance Committee
Audit and Supervisory Committee Office
● Board of DirectorsThe Board of Directors is composed of fifteen members,
including nine directors who are not audit and Supervisory committee members and six directors who are auditors (of which, four are outside directors). In addition to attending to basic management matters and making important decisions regarding business management, the Board of Directors monitors the status of business execution by each director.
● Audit and Supervisory CommitteeThe Audit and Supervisory Committee has a supervisory
function similar to the Board of Directors and also supervises the business execution of directors who are not audit and Supervisory committee members in accordance with laws and regulations, articles of incorporation, and Auditing and Supervisory Committee Regulations, etc.
● Executive CommitteeEstablished as a management council under the Board
of Directors, the Executive Committee decides on, deliberates, and reviews important items on business management on the basis of fundamental policies decided at board meetings and matters delegated by the Board of Directors. Note that the Executive Committee that is composed of directors with specific titles with a rank of executive director or above is also attended by standing audit and Supervisory committee members who provide advice as necessary.
● Various committeesThere are also a number of committees which provide
advice to the Executive Committee. These include the Risk Management Committee, the Asset Liability Management (ALM) Committee, and the Compliance Committee.
● Corporate officersIn order to speed up decision making and improve
management implementation capabilities, Daishi Bank has established a system of corporate officers. The Board of Directors elects corporate officers, who are each responsible for overseeing operations in their respective sectors.
● Internal auditsThe Audit and Inspection Division is under the direct
control of the Board of Directors and is independent from the divisions it audits. The Audit and Inspection Division audits branch offices, head office divisions and group companies, verifying the suitability of the compliance and risk management frameworks.
With a resolution to change the articles of incorporation at the 205th Ordinary General Meeting of Shareholders held on June 24, 2016, the Bank transferred to a company with an audit and Supervisory committee system on that day.
Governance Structure
In order to establish a strong reputation and a high level of trust from all of our stakeholders including customers, the local community, and shareholders, we recognize improving our financing soundness and profitability along with the strengthening and enhancement of corporate governance as important management issues, and accordingly we are working to enhance the auditing and monitoring of management and to improve transparency.
Basic Stance
Corporate GovernanceGovernance
Risk Management StructureGovernance
The Bank’s basic policy of risk management is to stably secure profits corresponding to risk and plan the appropriate distribution of management resources by accurately assessing and appropriately managing risks, and by then auditing this process. Organizationally, under this basic policy, Daishi Bank assigns specific jurisdiction over responses to each type of risk to specific sectors to respond to various types of risks, while establishing a Management Administration Division that understands and manages risk comprehensively, cutting across organizational boundaries. The Audit and Inspection Division (internal audit department), which is separated from the sectors it audits and under the direct control of the Board of Directors, conducts rigorous audits of the general sweep of bank operations, testing the appropriateness and effectiveness of Daishi Bank’s internal-control provisions. Specifically, Daishi Bank has instituted a number of committees to oversee risk management. The Risk Management Committee supervises risk management and advances organizational restructuring for the entire bank. The ALM Committee measures and analyzes risk, with the aim of controlling risk and securing stable revenues, and the Compliance Committee pursues business management that thoroughly complies with laws and regulations. These committees are also attended by audit and Supervisory committee members and held once a month as a general rule. These committees work in concert to address and resolve a wide range of risk-related issues through means including reports to the Board of Directors, etc., on matters decided as necessary. Under the risk-management system described above, For the purpose of ensuring financial soundness and using capital efficiently, Daishi Bank maintains sound control of its assets and conducts effective risk allocation, ensuring that assets are invested prudently for the effective management of risk capital. In addition, we have established a crisis management structure that included the formulation of a Basic Policy on Business Continuity that prioritizes the continuity of important operations in the event of an unexpected occurrence that would make it impossible to continue business, such as an earthquake or other major disaster, or the outbreak of a disease such as new strains of influenza.
Risk Management CommitteeDiscussions, monitoring, etc. on important matters related to risk management
Discussions, monitoring, etc. on important matters related to asset liability management
Discussions, monitoring, etc. on important matters related to compliance
ALM Committee Compliance Committee
Overall risk (integrated risk management)
Operational risk
Administrative risk
Systemrisk Information
securityrisk
Risk Management Policy
Operational Risk Management Regulations
Offices, Head Office, Group companies
Credit Risk Management Regulations
Market Risk Management Regulations
Management Administration Division (department to supervise risk management)
Risk jurisdiction division
Business management departmentn
Type of risk
Management regulations
Credit risk
CreditSupervisionDivision
Management Administration
Division
Management Administration
Division
Management Administration
Division
Management Administration
Division
Systems Planning Division
PersonnelDivision
GeneralAffairs
Division
Planning andCoordination
Division
Operation Administration DivisionCredit Supervision DivisionInternational Division
Market riskLiquidity Risk Management Regulations
Administrative RiskManagement Regulations
System RiskManagement Regulations
Information Security Risk
Management Regulations
Tangibleassetrisk
Tangible Asset Risk
Management Regulations
Legalrisk
Legal RiskManagement Regulations
OutsourcingManagement Regulations
PublicRelationsManual
Personnelrisk
Outsourcingrisk
Reputationalrisk
PersonnelRisk
Management Regulations
Liquidity risk
Other operational risks
Audit and Inspection Division (internal audit departm
ent)
External audits (accounting audits)
Board of Directors
Audit and Supervisory Committee
Executive Committee
Risk Management Organization Chart (as of June 24, 2016)
Risk Management Structure
18 19THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Corporate Governance Organization Chart (as of June 24, 2016)
Offices
Head Office
Group companies
General Meeting of Shareholders
Accounting Auditors
Audit and Inspection Division(Internal audit department)
Board of Directors
Audit and Supervisory Committee
Executive Committee
Audit and oversightAudit and oversight
Instructions and orders
Cooperation and collaboration
Audits
ALM Committee
Risk Management CommitteeDiscussions, monitoring, etc. on important matters related to risk management
Discussions, monitoring, etc. on important matters related to asset liability management
Discussions, monitoring, etc. on important matters related to compliance
Compliance Committee
Audit and Supervisory Committee Office
● Board of DirectorsThe Board of Directors is composed of fifteen members,
including nine directors who are not audit and Supervisory committee members and six directors who are auditors (of which, four are outside directors). In addition to attending to basic management matters and making important decisions regarding business management, the Board of Directors monitors the status of business execution by each director.
● Audit and Supervisory CommitteeThe Audit and Supervisory Committee has a supervisory
function similar to the Board of Directors and also supervises the business execution of directors who are not audit and Supervisory committee members in accordance with laws and regulations, articles of incorporation, and Auditing and Supervisory Committee Regulations, etc.
● Executive CommitteeEstablished as a management council under the Board
of Directors, the Executive Committee decides on, deliberates, and reviews important items on business management on the basis of fundamental policies decided at board meetings and matters delegated by the Board of Directors. Note that the Executive Committee that is composed of directors with specific titles with a rank of executive director or above is also attended by standing audit and Supervisory committee members who provide advice as necessary.
● Various committeesThere are also a number of committees which provide
advice to the Executive Committee. These include the Risk Management Committee, the Asset Liability Management (ALM) Committee, and the Compliance Committee.
● Corporate officersIn order to speed up decision making and improve
management implementation capabilities, Daishi Bank has established a system of corporate officers. The Board of Directors elects corporate officers, who are each responsible for overseeing operations in their respective sectors.
● Internal auditsThe Audit and Inspection Division is under the direct
control of the Board of Directors and is independent from the divisions it audits. The Audit and Inspection Division audits branch offices, head office divisions and group companies, verifying the suitability of the compliance and risk management frameworks.
With a resolution to change the articles of incorporation at the 205th Ordinary General Meeting of Shareholders held on June 24, 2016, the Bank transferred to a company with an audit and Supervisory committee system on that day.
Governance Structure
In order to establish a strong reputation and a high level of trust from all of our stakeholders including customers, the local community, and shareholders, we recognize improving our financing soundness and profitability along with the strengthening and enhancement of corporate governance as important management issues, and accordingly we are working to enhance the auditing and monitoring of management and to improve transparency.
Basic Stance
Corporate GovernanceGovernance
Risk Management StructureGovernance
The Bank’s basic policy of risk management is to stably secure profits corresponding to risk and plan the appropriate distribution of management resources by accurately assessing and appropriately managing risks, and by then auditing this process. Organizationally, under this basic policy, Daishi Bank assigns specific jurisdiction over responses to each type of risk to specific sectors to respond to various types of risks, while establishing a Management Administration Division that understands and manages risk comprehensively, cutting across organizational boundaries. The Audit and Inspection Division (internal audit department), which is separated from the sectors it audits and under the direct control of the Board of Directors, conducts rigorous audits of the general sweep of bank operations, testing the appropriateness and effectiveness of Daishi Bank’s internal-control provisions. Specifically, Daishi Bank has instituted a number of committees to oversee risk management. The Risk Management Committee supervises risk management and advances organizational restructuring for the entire bank. The ALM Committee measures and analyzes risk, with the aim of controlling risk and securing stable revenues, and the Compliance Committee pursues business management that thoroughly complies with laws and regulations. These committees are also attended by audit and Supervisory committee members and held once a month as a general rule. These committees work in concert to address and resolve a wide range of risk-related issues through means including reports to the Board of Directors, etc., on matters decided as necessary. Under the risk-management system described above, For the purpose of ensuring financial soundness and using capital efficiently, Daishi Bank maintains sound control of its assets and conducts effective risk allocation, ensuring that assets are invested prudently for the effective management of risk capital. In addition, we have established a crisis management structure that included the formulation of a Basic Policy on Business Continuity that prioritizes the continuity of important operations in the event of an unexpected occurrence that would make it impossible to continue business, such as an earthquake or other major disaster, or the outbreak of a disease such as new strains of influenza.
Risk Management CommitteeDiscussions, monitoring, etc. on important matters related to risk management
Discussions, monitoring, etc. on important matters related to asset liability management
Discussions, monitoring, etc. on important matters related to compliance
ALM Committee Compliance Committee
Overall risk (integrated risk management)
Operational risk
Administrative risk
Systemrisk Information
securityrisk
Risk Management Policy
Operational Risk Management Regulations
Offices, Head Office, Group companies
Credit Risk Management Regulations
Market Risk Management Regulations
Management Administration Division (department to supervise risk management)
Risk jurisdiction division
Business management departmentn
Type of risk
Management regulations
Credit risk
CreditSupervisionDivision
Management Administration
Division
Management Administration
Division
Management Administration
Division
Management Administration
Division
Systems Planning Division
PersonnelDivision
GeneralAffairs
Division
Planning andCoordination
Division
Operation Administration DivisionCredit Supervision DivisionInternational Division
Market riskLiquidity Risk Management Regulations
Administrative RiskManagement Regulations
System RiskManagement Regulations
Information Security Risk
Management Regulations
Tangibleassetrisk
Tangible Asset Risk
Management Regulations
Legalrisk
Legal RiskManagement Regulations
OutsourcingManagement Regulations
PublicRelationsManual
Personnelrisk
Outsourcingrisk
Reputationalrisk
PersonnelRisk
Management Regulations
Liquidity risk
Other operational risks
Audit and Inspection Division (internal audit departm
ent)
External audits (accounting audits)
Board of Directors
Audit and Supervisory Committee
Executive Committee
Risk Management Organization Chart (as of June 24, 2016)
Risk Management Structure
18 19THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Guidance and awareness raisingReporting and consultation
Compliance Structure
3
1
2
4
Guided by our mission and adhering to our corporate ethics, we are establishing a thorough compliance framework through the development and execution of a practical compliance program.
In operations, all directors and employees understand both the letter and spirit of the code of conduct regulated by the Japanese Bankers Association. The directors and employees of Daishi Bank work together to apply the code of this charter with common principles of conduct.
Through training and awareness-raising exercises, we build and instill a strong ethical consciousness and compliance-oriented mindset in our employees. We also work hard to develop systems for checking business execution processes, and strengthening measures to prevent compliance violations and other problems.
We appropriately verify, evaluate, and report the status of compliance and of the implementation of our compliance program. We make every effort to discover issues early and solve them promptly, with effective measures for correction of problems and prevention of their recurrence.
Four basic principles
The Compliance Committee, whose activities are linked closely with management, meets in principle once a month to discuss important issues and the status of efforts on compliance. In addition, the Compliance Supervision Office, established within the Management Administration Division as a supervisory department, plans compliance measures, monitors the status of compliance at each office, supports each Head Office division, and offers guidance on compliance issues to each branch.
Headquarters System
The manager of each Head Office division and office serves as the compliance supervisor for each respective division, while the second-highest ranking position is appointed as the legal check supervisor. Furthermore, an Office Compliance Committee has been established in each office to prevent and conduct early detection of compliance issues and consider and formulate recurrence prevention measures.
System in Head Office Divisions and Offices
Our Compliance Manual is distributed to all of our directors and employees, and is used in joint training sessions and in compliance seminars held in our offices and branches. We are strengthening our practical training curriculum, which includes e-learning sessions to test knowledge and understanding of major relevant laws, regulations and ordinances, and also includes group discussions and case studies. These are helpful in broadening employee awareness of compliance issues, and ensuring they remain vigilant about such matters.
Training and Education Activities
Compliance CommitteeChair: Responsible executive of Management Administration DivisionMembers: Manager of 7 related departments
● Consideration of Basic Policy on Compliance (Legal Compliance Policy) and internal rules (Legal Compliance Regulations) ● Consideration of Compliance Manual● Consideration of and progress management for the compliance program● Management and consideration of countermeasures related to violations● Discussions on other important matters related to compliance
Reports and proposals
Management Administration Division (Compliance Supervision Office)
〈Compliance Supervision Departments〉● Compliance Committee Office● Planning and implementation concerning compliance● Consultations and guidance concerning compliance● Training, education, and awareness raising concerning compliance● Legal checks on documents, etc. issued by the Head Office
Head Office divisions and offices● Compliance supervisor ● Legal check supervisor
〈Office Compliance Committees and Workshops〉
Customer trust is a bank’s greatest asset. To ensure that we continue to earn and maintain the trust of our customers, we at Daishi Bank must improve the soundness of management and win the confidence of the community based on our corporate ethics. The cornerstone of this effort is compliance. At Daishi Bank, compliance is our top priority. Adhering to four basic principles, all directors and employees are working every day to establish management that is firmly grounded in the spirit of compliance.
Fundamental Policies Toward Compliance
Compliance StructureGovernance
● Confirmation of status of compliance in offices and consideration of improvement measures (causal analysis of problems and formulation of prevention and recurrence prevention measures)● Implementation of compliance training in offices
Financial DataCorporate Data
● CONTENTS
Consolidated Balance Sheets 22
Consolidated Statements of Operations 23
Consolidated Statements of Comprehensive Income Consolidated Statements of Shareholders' Equity 24
Consolidated Statements of Cash Flows 25
Notes To Consolidated Financial Statements 26
Corporate Organization Directory Chart 41
Corporate Data 42
Company History 43
20 21THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Guidance and awareness raisingReporting and consultation
Compliance Structure
3
1
2
4
Guided by our mission and adhering to our corporate ethics, we are establishing a thorough compliance framework through the development and execution of a practical compliance program.
In operations, all directors and employees understand both the letter and spirit of the code of conduct regulated by the Japanese Bankers Association. The directors and employees of Daishi Bank work together to apply the code of this charter with common principles of conduct.
Through training and awareness-raising exercises, we build and instill a strong ethical consciousness and compliance-oriented mindset in our employees. We also work hard to develop systems for checking business execution processes, and strengthening measures to prevent compliance violations and other problems.
We appropriately verify, evaluate, and report the status of compliance and of the implementation of our compliance program. We make every effort to discover issues early and solve them promptly, with effective measures for correction of problems and prevention of their recurrence.
Four basic principles
The Compliance Committee, whose activities are linked closely with management, meets in principle once a month to discuss important issues and the status of efforts on compliance. In addition, the Compliance Supervision Office, established within the Management Administration Division as a supervisory department, plans compliance measures, monitors the status of compliance at each office, supports each Head Office division, and offers guidance on compliance issues to each branch.
Headquarters System
The manager of each Head Office division and office serves as the compliance supervisor for each respective division, while the second-highest ranking position is appointed as the legal check supervisor. Furthermore, an Office Compliance Committee has been established in each office to prevent and conduct early detection of compliance issues and consider and formulate recurrence prevention measures.
System in Head Office Divisions and Offices
Our Compliance Manual is distributed to all of our directors and employees, and is used in joint training sessions and in compliance seminars held in our offices and branches. We are strengthening our practical training curriculum, which includes e-learning sessions to test knowledge and understanding of major relevant laws, regulations and ordinances, and also includes group discussions and case studies. These are helpful in broadening employee awareness of compliance issues, and ensuring they remain vigilant about such matters.
Training and Education Activities
Compliance CommitteeChair: Responsible executive of Management Administration DivisionMembers: Manager of 7 related departments
● Consideration of Basic Policy on Compliance (Legal Compliance Policy) and internal rules (Legal Compliance Regulations) ● Consideration of Compliance Manual● Consideration of and progress management for the compliance program● Management and consideration of countermeasures related to violations● Discussions on other important matters related to compliance
Reports and proposals
Management Administration Division (Compliance Supervision Office)
〈Compliance Supervision Departments〉● Compliance Committee Office● Planning and implementation concerning compliance● Consultations and guidance concerning compliance● Training, education, and awareness raising concerning compliance● Legal checks on documents, etc. issued by the Head Office
Head Office divisions and offices● Compliance supervisor ● Legal check supervisor
〈Office Compliance Committees and Workshops〉
Customer trust is a bank’s greatest asset. To ensure that we continue to earn and maintain the trust of our customers, we at Daishi Bank must improve the soundness of management and win the confidence of the community based on our corporate ethics. The cornerstone of this effort is compliance. At Daishi Bank, compliance is our top priority. Adhering to four basic principles, all directors and employees are working every day to establish management that is firmly grounded in the spirit of compliance.
Fundamental Policies Toward Compliance
Compliance StructureGovernance
● Confirmation of status of compliance in offices and consideration of improvement measures (causal analysis of problems and formulation of prevention and recurrence prevention measures)● Implementation of compliance training in offices
Financial DataCorporate Data
● CONTENTS
Consolidated Balance Sheets 22
Consolidated Statements of Operations 23
Consolidated Statements of Comprehensive Income Consolidated Statements of Shareholders' Equity 24
Consolidated Statements of Cash Flows 25
Notes To Consolidated Financial Statements 26
Corporate Organization Directory Chart 41
Corporate Data 42
Company History 43
20 21THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
Note : The translations of the Japanese yen amounts into US dollars are using the prevailing exchange rate at March 31,2016, which was ￥112.68 to US $1.
Cash and due from banks Monetary claims bought Trading account securities Securities Loans and bills discounted Foreign exchanges Other assets Property,plant and equipment Intangible assets Deferred tax assets Customers' liabilities for acceptances and guarantees Allowance for loan losses Allowance for investment loss
Thousands of U.S. DollarsMillions of Yen
Deposits and Negotiable certificates of deposit Payables under securities lending transactions Borrowed money Foreign exchanges Other liabilities Provision for directors' bonuses Net defined benefit liability Provision for directors' retirement benefits Provision for reimbursement of depositsProvision for contingent loss Reserves under special laws Deferred tax liabilities Deferred tax liabilities for land revaluation Acceptances and guarantees
Capital stock Authorized-576,999 thousand shares, Issued-357,353 thousand sharesCapital surplusRetained earningsTreasury stock Shareholders' equityValuation difference on available-for-sale securities Deferred gains or losses on hedgesRevaluation reserve for landRemeasurements of defined benefit plans Valuation and translation adjustmentsSubscription rights to sharesNon-controlling interests
22 THE DAISHI BANK 2016 ANNUAL REPORT
1
Interest on loans and discountsInterest and dividends on securitiesOther interest income Fees and commissionsOther ordinary income Other income
Thousands of U.S. DollarsMillions of Yen
Interest on deposits Interest on borrowings and rediscountsOther interest expensesFees and commissions paymentsOther ordinary expenses General and administrative expenses Provision of allowance for loan losses Other expenses
Profit before income taxesProvision for income taxes: Income taxes-current Income taxes-deferred
ProfitProfit attributable to non-controlling interests
Net income Cash dividends
sralloD.S.UneY
ProfitOther comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Revaluation reserve for land Remeasurements of defined Total comprehensive income Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests
Thousands of U.S. DollarsMillions of Yen
23THE DAISHI BANK 2016 ANNUAL REPORT
Non-controllinginterests
Valuationdifference on
available-for-sale
securities
Deferredgains or losses onhedges
Remeasurementsof defined
benefit plans
Revaluationreservefor land
Subscriptionrights to shares
Treasurystock
Retainedearnings
Capitalsurplus
Capitalstock
Non-controllinginterests
Valuationdifference on
available-for-sale
securities
Deferredgains or losses onhedges
Remeasurementsof defined
benefit plans
Revaluationreservefor land
Subscriptionrights to shares
Treasurystock
Retainedearnings
Capitalsurplus
Capitalstock
Shares ofCapital stock(Thousands)
Millions of Yen
Thousands of U.S. Dollars
Balance at March 31, 2015 Dividends from surplus Profit attributable to owners of parent Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Change in treasury shares of parent arising from transactions with non-controlling shareholders Net changes of items other than shareholders' equity Total changes of items during the period
Balance at March 31, 2014 Cumulative effects of changes in accounting policies Restated balance Dividends from surplus Profit attributable to owners of parent Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Net changes of items other than shareholders' equity Total changes of items during the period
Balance at March 31, 2015 Dividends from surplus Profit attributable to owners of parent Purchase of treasury stock Disposal of treasury stock Reversal of revaluation reserve for land Change in treasury shares of parent arising from transactions with non-controlling shareholders Net changes of items other than shareholders' equity Total changes of items during the period
24 THE DAISHI BANK 2016 ANNUAL REPORT
1
Profit before income taxesAdjustments to reconcile profit before income taxes to net cash provided by operating activities: Depreciation and amortization Impairment loss Increase (decrease) in allowance for loan losses Increase (decrease) in allowance for investment losses Increase (decrease) in provision for contingent loss Increase (decrease) in provision for directors' bonuses Increase (decrease) in net defined benefit liability Increase (decrease) in provision for directors' retirement benefits Increase (decrease) in provision for reimbursement of deposits Gain on fund management Financing expenses Loss (gain) related to securities Foreign exchange losses (gains) Loss (gain) on disposal of noncurrent assets Net decrease (increase) in trading account securities Net decrease (increase) in loans and bills discounted Net increase (decrease) in deposit Net increase (decrease) in negotiable certificates of deposit Net increase (decrease) in borrowed money (excluding subordinated borrowings) Net decrease (increase) in deposit (excluding deposit paid to Bank of Japan) Net decrease (increase) in call loans Net increase (decrease) in payables under securities lending transactions Net decrease (increase) in foreign exchanges-assets Net increase (decrease) in foreign exchanges-liabilities Proceeds from fund management Payments for finance Other, net
sub-totalIncome taxes paid
Thousands of U.S. DollarsMillions of Yen
Effect of exchange rate change on cash and cash equivalentsNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of the year
Cash dividends paidDividends paid to non-controlling interestsPayments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidationPurchase of treasury stockProceeds from sales of treasury stock
Purchase of securitiesProceeds from sales of securitiesProceeds from redemption of securitiesPurchase of property, plant and equipmentPurchase of intangible assetsProceeds from sales of property, plant and equipment
25THE DAISHI BANK 2016 ANNUAL REPORT
26 THE DAISHI BANK 2016 ANNUAL REPORT
1
27THE DAISHI BANK 2016 ANNUAL REPORT
①
②
－－
Cash and due from banksOther
Cash and cash equivalents
Thousands ofU.S. DollarsMillions of Yen
28 THE DAISHI BANK 2016 ANNUAL REPORT
1
Millions of Yen
（1）Cash and due from banks（2）Securities
Trading securities Held-to-maturity debt securities Other securities
（3）Loans Allowance for loan losses
Asset capital
（1）Deposits（2）Negotiable deposit（3）Payables under securities
lending transactions （4）Borrowed money
Total liabilities
Derivative transactionsHedge accounting not appliedHedge accounting applied
Total derivative transactions
Millions of Yen
（1）Cash and due from banks（2）Securities
Trading securities Held-to-maturity debt securities Other securities
（3）Loans Allowance for loan losses
Asset capital
（1）Deposits（2）Negotiable deposit（3）Payables under securities
lending transactions （4）Borrowed money
Total liabilities
Derivative transactionsHedge accounting not appliedHedge accounting applied
Total derivative transactions
（1）Cash and due from banks（2）Securities
Trading securities Held-to-maturity debt securities Other securities
（3）Loans Allowance for loan losses
Asset capital
（1）Deposits（2）Negotiable deposit（3）Payables under securities
lending transactions （4）Borrowed money
Total liabilities
Derivative transactionsHedge accounting not appliedHedge accounting applied
Total derivative transactions
Thousands of U.S. Dollars
29THE DAISHI BANK 2016 ANNUAL REPORT
DepositsNegotiable depositPayables under securities lending transactionsBorrowed money
Total
Thousands of U.S. Dollars
DepositsNegotiable depositPayables under securities lending transactionsBorrowed money
Total
Millions of Yen
DepositsNegotiable depositPayables under securities lending transactionsBorrowed money
Total
Millions of Yen
Due from banksSecurities Held-to-maturity debt securities Those that are Japanese government bonds Japanese local government bonds Corporate bonds Other securities Those that are Japanese government bonds Japanese local government bonds Corporate bondsLoans
Total
Thousands of U.S. Dollars
Due from banksSecurities Held-to-maturity debt securities Those that are Japanese government bonds Japanese local government bonds Corporate bonds Other securities Those that are Japanese government bonds Japanese local government bonds Corporate bondsLoans
Total
Millions of Yen
Due from banksSecurities Held-to-maturity debt securities Those that are Japanese government bonds Japanese local government bonds Corporate bonds Other securities Those that are Japanese government bonds Japanese local government bonds Corporate bondsLoans
Total
Millions of Yen
①Listed stock ②Associated investments, etc.
Total
Thousands ofU.S. DollarsMillions of Yen
30 THE DAISHI BANK 2016 ANNUAL REPORT
1
Book valueAmount of net unrealized
gains included in theincome statement
Thousands ofU.S. DollarsMillions of Yen
Book valueFair valueDifference
Thousands ofU.S. DollarsMillions of Yen
StocksBondsOther than stocks
and bonds
StocksBondsOther than stocks
and bonds
Total
Total
Acquisitioncost
Millions of Yen
Acquisitioncost Book value Difference
Thousands of U.S. Dollars
Book value Difference
StocksBondsOther than stocks
and bonds
Total
Acquisitioncost
Millions of Yen
Book value Difference
Difference between Cost and Fair Value on available-for-sale securitiesDeferred tax liability
Sub-total
Non-controlling interests
Valuation difference onAvailable-for-sale securities
Thousands ofU.S. DollarsMillions of Yen
31THE DAISHI BANK 2016 ANNUAL REPORT
Due within 1 yearDue after 1 year but within 2 years Due after 2 years but within 3 years Due after 3 years but within 4 yearsDue after 4 years but within 5 yearsDue after 5 years
Total
Thousands ofU.S. DollarsMillions of Yen
Cost estimation residual value amountsEstimated residual valueEquivalent interest/dividends received values
Lease investment assets
Thousands ofU.S. DollarsMillions of Yen
Currency Swap:Foreign exchange contract:
Sell Buy
Currency options:Sell Buy
Notionalprincipal amount
Fair valueNotionalprincipalamount
Fair value
Millions of YenThousands ofU.S. Dollars
Swap:Receive fixed – pay variable rateReceive variable – pay fixed rate
Option:SellBuy
Swap:Receive fixed – pay variable rateReceive variable – pay fixed rateReceive variable – pay variable rate
Option:SellBuy
Notional principal amount
Fair valueNotionalprincipalamount
Fair value
Millions of YenThousands ofU.S. Dollars
Currency Swap:Foreign exchange contract:
Sell Buy
Currency options:Sell Buy
Notional principal amount
Fair value
Millions of Yen
Notionalprincipalamount
Fair value
Millions of Yen
32 THE DAISHI BANK 2016 ANNUAL REPORT
1
Due within 1 yearDue after 1 year but within 2 years Due after 2 years but within 3 years Due after 3 years but within 4 yearsDue after 4 years but within 5 yearsDue after 5 years
Total
Thousands ofU.S. DollarsMillions of Yen
Due within 1 yearDue after 1 year
Total
Thousands ofU.S. DollarsMillions of Yen
Current depositsOrdinary depositsNegotiable certificates of
depositsSavings depositsDeposits at noticeTime depositsOther deposits
Total
Thousands ofU.S. DollarsMillions of Yen
Non-accrual loans:Loans to borrowers under
bankruptcy proceedingsLoans past due six
months or more
Total non-accrual loans
Accrual loans past due overmore than three months
Restructured loans-adjustedthe terms in favor ofborrowers for financialassistance
Thousands ofU.S. DollarsMillions of Yen
Loans on notesLoans on deedsBills discountedOverdraftsOther
Total
Thousands ofU.S. DollarsMillions of Yen
33THE DAISHI BANK 2016 ANNUAL REPORT
Thousands ofU.S. DollarsMillions of Yen
Opening balances of retirement benefit obligations Cumulative effects of changes in accounting policiesRestated balance Service costs – benefits earned during the year Interest cost on projected benefit obligation Actuarial gains and losses accrued amount Retirement benefit payment amount Past service cost accrued amount Other
Closing balances of retirement benefit obligations
Opening balances of the pension assetsExpected return on plan assetsActuarial gains and losses accrued amountContributions from the business ownerRetirement benefit payment amountContribution to retirement benefit trust Other
Closing balances of the pension assets
Thousands ofU.S. DollarsMillions of Yen
Trading account securitiesSecurities
Total
Thousands ofU.S. DollarsMillions of Yen
Assets pledged: SecuritiesRelated liabilities: Deposits Payables under securities lending transactionsBorrowed money
Thousands ofU.S. DollarsMillions of Yen
Cash collateral paid for financial instrumentsGuarantee deposits
Total
Thousands ofU.S. DollarsMillions of Yen
34 THE DAISHI BANK 2016 ANNUAL REPORT
1
Opening balances of retirement benefit obligations Severance and retirement benefit expenses Retirement benefit payment amount Contributions to the system
Closing balances of retirement benefit obligations
Savings-type system retirement benefit obligationsPension assets
Non-savings-type system retirement benefit obligations
Net liabilities and assets recorded on the consolidated balance sheets
Retirement benefit obligationsRetirement benefit assets
Net liabilities and assets recorded on the consolidated balance sheets
Thousands ofU.S. DollarsMillions of Yen
Thousands ofU.S. DollarsMillions of Yen
Thousands ofU.S. DollarsMillions of Yen
Unrecognized prior service costsUnrecognized actuarial gains and losses
Total
Service costs – benefits earned during the yearInterest cost on projected benefit obligationExpected return on plan assetsAmortization of actuarial gains and lossesAmortization of past service costsRetirement benefit costs calculated through the simplified method Other
Retirement benefit for the defined-benefit system
Actuarial gains and lossesPast service costs
Total
Thousands ofU.S. DollarsMillions of Yen
Thousands ofU.S. DollarsMillions of Yen
Thousands ofU.S. DollarsMillions of Yen
35THE DAISHI BANK 2016 ANNUAL REPORT
Deferred tax assets:Allowance for loan losses
and write-off of claims
DepreciationOtherLess valuation allowance
Total deferred income tax assets
Deferred tax liabilities:Unrealized gains on
securities availablefor sale
Gain on contibution ofsecurities to employeeretierment benefit trust
Other
Total deferred income taxliabilities
Net deferred tax assets(liabilities)
Thousands ofU.S. DollarsMillions of Yen
Net defined benefit liability
Statutory tax rateDecrease of valuation allowanceNon-taxable income (dividend income, etc.)Non-deductible expensesInhabitants taxEnd-of-term deferred tax assets revised down due to tax rate changesOther
Effective tax rate
BondsStocksCash and depositsGeneral accountsOther
Total
①
②
～～
～～
Discount rateExpected long-term investment returnProjected promotion rate
36 THE DAISHI BANK 2016 ANNUAL REPORT
1
Niigata Pref.
Niigata Pref.
Total
Thousands ofMillionsof Yen U.S. DollarsArea
Branch offices and other
Idle assets and other
Principal purpose
of use
Land and buildings
Land and buildings
Classification
37THE DAISHI BANK 2016 ANNUAL REPORT
Depreciation and amortization
Depreciation and amortization
Operating income:External customersIntersegment
Total
Operating profit
Assets
Millions of Yen
Thousands of U.S. Dollars
Banking Leasing Securities OthersSubtotal Total Adjustment Consolidated
Banking Leasing Securities OthersSubtotal Total Adjustment Consolidated
Liabilities
Others
Increase in tangible and intangible fixed assets
Interest incomeInterest expenses
Operating income:External customersIntersegment
Total
Operating profit
Assets
Liabilities
Others
Increase in tangible and intangible fixed assets
Interest incomeInterest expenses
Depreciation and amortization
Operating income:External customersIntersegment
Total
Operating profit
Assets
Millions of Yen
Banking Leasing Securities OthersSubtotal Total Adjustment Consolidated
Liabilities
Others
Increase in tangible and intangible fixed assets
Interest incomeInterest expenses
38 THE DAISHI BANK 2016 ANNUAL REPORT
1
Written-off of loansLosses on sales of fixed assetsLosses on sales of stocks and other securitiesLosses on devaluation of stocks and other securitiesImpairment lossesOther
Total
Reversal of allowance for loan losses
Gain on sales of stocksand other securities
Recoveries of written-off claimsOther
Total
Thousands ofU.S. DollarsMillions of Yen
Thousands ofU.S. DollarsMillions of Yen
Operating income: External customers
TotalOthersLeasingSecuritiesInvestment
Loans
Thousands of U.S. Dollars
TotalOthers
Impairment loss
Thousands of U.S. Dollars
Banking Leasing Securities Subtotal
Operating income: External customers
TotalOthersLeasingSecuritiesInvestment
Loans
Millions of Yen
TotalOthers
Impairment loss
Millions of Yen
Banking Leasing Securities Subtotal
39THE DAISHI BANK 2016 ANNUAL REPORT
329,800
14,300
315,500
14,300
14,300
2014 Stock options
341,700
17,600
324,100
17,600
17,600
2013 Stock options
424,100
25,000
399,100
25,000
25,000
2012 Stock options
2014 Stock options8 directors and 7 executive officers of the Daishi Bank
Daishi Bank common stock: 329,800 stocks
July 30, 2014
None set
None set
July 31,2014 to July 30,2044
8 directors and 8 executive officers of the Daishi Bank
Daishi Bank common stock: 423,900 stocks
July 30, 2013
None set
None set
July 31,2013 to July 30,2043
2013 Stock options7 directors and 9 executive officers of the Daishi Bank
Daishi Bank common stock: 597,600 stocks
July 30, 2012
None set
None set
July 31,2012 to July 30,2042
2012 Stock options
Prior to vesting (stocks)
At end of previous consolidated fiscal year
Granted
Forfeited
Vested
Unvested
After vesting (stocks)
At end of previous consolidated fiscal year
Vested
Exercised
Forfeited
Unexercised
2015 Stock options
②
①
Exercising price (¥)
Avg. stock price at time of exercising (¥)
Fair carrying value per unit at date of grant (¥)
1
524
300
2013 Stock options
Volatility of stock price
Expected remaining period
Expected dividend
Risk-free interest rate
25.96%
2year
¥8 per share
0.002%
Date of grant
Vesting conditions
Vesting period
Exercise period
Number of stock options by stock type
Number and type of option holders
1
524
211
2012 Stock options
1
524
369
2014 Stock options
1
511
2015 Stock options
1
524
236
2011 Stock options
1
286
2010 Stock options
8 directors and 7 executive officers of the Daishi Bank
Daishi Bank common stock: 249,100 stocks
July 30, 2015
None set
None set
July 31,2015 to July 30,2045
2015 Stock options
249,100
249,100
2015 Stock options
8 directors and 10 executive officers of the Daishi Bank
Daishi Bank common stock: 606,600 stocks
July 28, 2011
None set
None set
July 29,2011 to July 28,2041
2011 Stock options9 directors and 8 executive officers of the Daishi Bank
Daishi Bank common stock: 465,400 stocks
July 27, 2010
None set
None set
July 28,2010 to July 27,2040
2010 Stock options
294,900
22,300
272,600
22,300
22,300
2011 Stock options
178,400
178,400
2010 Stock options
40 THE DAISHI BANK 2016 ANNUAL REPORT
1
Corporate Organization Directory Chart
Assets Review and Audit Office
(As of June 24, 2016)
Secretariat
Planning Coordination Division
Public Relations Office
System Integration Promotion Office
Division Compliance and Risk Supervision Office
ALM Office
Management Administration
Audit and Inspection Division
Credit Supervision DivisionOffice
Loan Examination Division
Operation Centralization Division
Operation Support Division
Treasury and Capital Markets Division
International Division
Corporate Support Office
Systems Planning Division
Business Process Reengineering Promotion Office
Securities Operation Office
Securities Operation Administration Office
Credit Card Office
Customer Relations Office
Shanghai Representative Office
Consulting Promotion Division
Call Center
Loan Center
Business Promotion Division
Consulting Plaza
Personnel Division
Human Resources Development Office
Operation Administration Division
General Affairs Division
Tokyo Representative Office
Business and Regional Revitalization Headquarters
Operation Headquarters
General Meeting of Stockholders
Sourcing Administration Office
Board of Directors Executive Committee
Audit and Supervisory Committee
41THE DAISHI BANK 2016 ANNUAL REPORT
(As of March 31, 2016)
(As of March 31, 2016)
Board of Directors andAudit and Supervisory Committee
Domestic
Number of Offices by Area
Niigata 110
Tokyo 2
Others 7
Total 119
(As of March 31, 2016)
Shanghai 1
Overseas
Head Office1071-1, Higashiborimae-dori7-bancho chuo-ku, Niigata 951-8066, JapanTelephone: 81(25)222-4111URL: http://www.daishi-bank.co. jp/
Internetional Division HeadquartersAddress: same as above.Telephone: 81(25)222-4111Facsimile: 81(25)225-2331SWIFT: DAIS JPJT
Shanghai Representative Office28 th floor, Hang Seng Bank Tower,No.1000 Lujiazui Ring Road,Pudong New Area,Shanghai,200120, People’s Republic of ChinaTelephone: 86(21)5011-9832Facsimile: 86(21)5011-9833
Chief RepresetativeMasanori Kawabe
Service Network
Major stockholders (10 largest)Number of Share
(Thousand)
latipaCnoitaroprocnIssenisub rojaMynapmoC
Ratio of shareholder voting rights held bythe Daishi Bank
Subsidiaries
PresidentFujio Namiki
Deputy PresidentKosuke Sasaki
Senior Managing DirectorSatoshi Hasegawa
Managing DirectorsSeiya KiguchiTakuya WatanabeKeiji MiyazawaKiyofumi ObaraKiminari Onuma
Director and Exective OfficerJumatsu Eizuka
Director, Audit and Supervisory Committee MemberNobuya TanakaMasamichi Sekizawa
Director（outside）, Audit and Supervisory Committee MemberEiichi TsuruiKoichi MasudaToshizo OdaTakashi Sasaki
International Division General ManagerKosuke Karahashi
Percent
(As of June 24, 2016)
1. Japan Trustee Services Bank, Ltd. (Trust Account)
2. Nippon Life Insurance Company
3. Meiji Yasuda Life Insurance Company
4. Employee’s stockholdings
5. Tohoku Electric Power Co., Inc.
6. Daido Life Insurance Company
7. Sompo Japan Nipponkoa Insurance Inc.
8. Japan Trustee Services Bank, Ltd.（Trust Account 9） 9. CBNY DFA INTL SMALL CAP VALUE PORTFOLIO （Standing proxy: Citibank Japan Ltd.） 10. The Bank of Tokyo-Mitsubishi UFJ, Ltd.
4.64
2.87
2.84
2.52
2.34
1.97
1.92
1.88
1.66
1.64
16,606
10,261
10,159
9,008
8,372
7,056
6,884
6,728
5,934
5,889
The Daishi Lease Co., Ltd.2-10, Akashi 2-chome chuo-ku, Niigata 950-0084
General leasing business Nov. 11, 1974 ¥ 100 million 5%
The Daishi Computer Service Co., Ltd.1-17, Abumi 1-chome chuo-ku, Niigata 950-0913
Computer-related services May 10, 1976 ¥ 15 million 5%
The Daishi Guaranty Co., Ltd.224-1, Honcho-dori 5-bancho chuo-ku, Niigata 951-8067
Credit guarantee business Oct. 27, 1978 ¥ 50 million 100%
The Daishi DC Card Co., Ltd.1245, Kamiokawamae-dori 8-bancho chuo-ku, Niigata 950-8068
Credit card business March 1,1990 ¥ 30 million 5%
Daishi Securities Co., Ltd.8-26, Jonaicho 3-chome, Nagaoka 940-0061
The securities industry Aug. 8,1952 ¥ 600 million 100%
The Daishi JCB Card Co., Ltd.1245, Kamiokawamae-dori 8-bancho chuo-ku, Niigata 950-8068
Credit card andcredit guaranty businesses Nov. 12, 1982 ¥ 30 million 5%
The Daishi Management Consulting Co., Ltd.1071-1, Higashiborimae-dori 7-bancho chuo-ku, Niigata 951-8066
Consulting business andventure capital June 8, 1984 ¥ 20 million 5%
Company HistoryCorporate Data
1873
1874
1896
Founded as The Fourth National Bank of JapanCapital of 200 thousand yenOperations begin, and the Tokyo Office opened
Reorganized as Niigata Bank, Ltd.Capital of 1 million yen
19121917
Successive mergers with banks in Niigata prefectureCorporate name changed to The Daishi Bank, Ltd.Capital of 5 million yen
1943
1945
1949195619591961
1963196419671968197019711973
Niigata Bank and Nou Bank merged, inherits business of 139 Bank, Kashiwazaki Bank, and Yasuzuka Bank (major merge of banks within the prefecture)Merged with Niigata Trust Company to operate trust services concurrently This brings the number of banks merged with to 29Capital of 30 million yenListed on the Niigata Stock ExchangeCapital of 500 million yenCapital of 1 billion yenBegan foreign exchange trading
Trust services discontinuedCapital of 2 billion yenCapital of 3 billion yenEDPS (computers) introducedCapital of 4.5 billion yenAdministration center establishedIntegrated online operationsCapital of 7.5 billion yenThe Daishi Bank celebrates 100 years since its foundingListed on the second section of the Tokyo Stock Exchange
1975
197719781979198019811982198319841985
19861987
1988
Capital of 10 billion yenChanged listing of shares to the first section of the Tokyo Stock ExchangeBegan direct dealings with overseas banksOutstanding deposits reach 1 trillion yenCapital of 13 billion yenNew online startedSecond online completionObtained all-inclusive approval for overseas correspondent agreementsGovernment bonds sales startedMutual use of ATMs with prefectural financial institutions startedBegan dealing operationsCapital of 17 billion yenThe New York Representative Office is openedAcquired charter for secured debenture trust business.Outstanding deposits reach 2 trillion yenBegan handling Japanese commercial paperThe Hong Kong Representative Office is openedIssued first unsecured convertible bond
1989199019911992
1993
19941995
1998
1999200020012002200320052006200820092011201220132015
2016
Began financial futures transaction servicesThe New York Office is openedFull-scale operation of third online system The New Head Office is completed
The Hong Kong Office is openedBegan operation as a trust services agentAcquired license for interest forward transactions and forward exchange transactionMedian price share issue through allotment to shareholdersCapital of 32.7 billion yenBegan handling open foreign currency depositsBegan over-the-counter sales of investment trustsThe New York Office is closedThe Hong Kong Office is closedBegan services as a non-life insurance agentBegan services as a life insurance agentOffered shares and conducted overseas IR activitiesBegan a securities brokerage businessNiigata Securities Co., Ltd. made a consolidated subsidiaryCommenced system joining Tsubasa ProjectTakada Sales Department and Nagaoka Sales Department establishedThe Shanghai Representative Office is openedOutstanding deposits reach 4 trillion yenThe Daishi Bank celebrates 140 years since its foundingStart of the Medium-Term Business Plan
“Step-up 2nd Stage - Further evolution for the 145th year”Niigata Securities Co., Ltd. became a wholly-owned subsidiary and name changed to Daishi Securities Co., Ltd.The Daishi Guaranty Co., Ltd. became a wholly-owned subsidiary
A complete view of the Head Office at the time of its founding
A complete view of the newly built Head Office in 1962
A complete view of the newly built Head Office in 1882
A complete view of the newly built Head Office in 1928A complete view of the current Head Office completed in 1992
42 43THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
(As of March 31, 2016)
(As of March 31, 2016)
Board of Directors andAudit and Supervisory Committee
Domestic
Number of Offices by Area
Niigata 110
Tokyo 2
Others 7
Total 119
(As of March 31, 2016)
Shanghai 1
Overseas
Head Office1071-1, Higashiborimae-dori7-bancho chuo-ku, Niigata 951-8066, JapanTelephone: 81(25)222-4111URL: http://www.daishi-bank.co. jp/
Internetional Division HeadquartersAddress: same as above.Telephone: 81(25)222-4111Facsimile: 81(25)225-2331SWIFT: DAIS JPJT
Shanghai Representative Office28 th floor, Hang Seng Bank Tower,No.1000 Lujiazui Ring Road,Pudong New Area,Shanghai,200120, People’s Republic of ChinaTelephone: 86(21)5011-9832Facsimile: 86(21)5011-9833
Chief RepresetativeMasanori Kawabe
Service Network
Major stockholders (10 largest)Number of Share
(Thousand)
latipaCnoitaroprocnIssenisub rojaMynapmoC
Ratio of shareholder voting rights held bythe Daishi Bank
Subsidiaries
PresidentFujio Namiki
Deputy PresidentKosuke Sasaki
Senior Managing DirectorSatoshi Hasegawa
Managing DirectorsSeiya KiguchiTakuya WatanabeKeiji MiyazawaKiyofumi ObaraKiminari Onuma
Director and Exective OfficerJumatsu Eizuka
Director, Audit and Supervisory Committee MemberNobuya TanakaMasamichi Sekizawa
Director（outside）, Audit and Supervisory Committee MemberEiichi TsuruiKoichi MasudaToshizo OdaTakashi Sasaki
International Division General ManagerKosuke Karahashi
Percent
(As of June 24, 2016)
1. Japan Trustee Services Bank, Ltd. (Trust Account)
2. Nippon Life Insurance Company
3. Meiji Yasuda Life Insurance Company
4. Employee’s stockholdings
5. Tohoku Electric Power Co., Inc.
6. Daido Life Insurance Company
7. Sompo Japan Nipponkoa Insurance Inc.
8. Japan Trustee Services Bank, Ltd.（Trust Account 9） 9. CBNY DFA INTL SMALL CAP VALUE PORTFOLIO （Standing proxy: Citibank Japan Ltd.） 10. The Bank of Tokyo-Mitsubishi UFJ, Ltd.
4.64
2.87
2.84
2.52
2.34
1.97
1.92
1.88
1.66
1.64
16,606
10,261
10,159
9,008
8,372
7,056
6,884
6,728
5,934
5,889
The Daishi Lease Co., Ltd.2-10, Akashi 2-chome chuo-ku, Niigata 950-0084
General leasing business Nov. 11, 1974 ¥ 100 million 5%
The Daishi Computer Service Co., Ltd.1-17, Abumi 1-chome chuo-ku, Niigata 950-0913
Computer-related services May 10, 1976 ¥ 15 million 5%
The Daishi Guaranty Co., Ltd.224-1, Honcho-dori 5-bancho chuo-ku, Niigata 951-8067
Credit guarantee business Oct. 27, 1978 ¥ 50 million 100%
The Daishi DC Card Co., Ltd.1245, Kamiokawamae-dori 8-bancho chuo-ku, Niigata 950-8068
Credit card business March 1,1990 ¥ 30 million 5%
Daishi Securities Co., Ltd.8-26, Jonaicho 3-chome, Nagaoka 940-0061
The securities industry Aug. 8,1952 ¥ 600 million 100%
The Daishi JCB Card Co., Ltd.1245, Kamiokawamae-dori 8-bancho chuo-ku, Niigata 950-8068
Credit card andcredit guaranty businesses Nov. 12, 1982 ¥ 30 million 5%
The Daishi Management Consulting Co., Ltd.1071-1, Higashiborimae-dori 7-bancho chuo-ku, Niigata 951-8066
Consulting business andventure capital June 8, 1984 ¥ 20 million 5%
Company HistoryCorporate Data
1873
1874
1896
Founded as The Fourth National Bank of JapanCapital of 200 thousand yenOperations begin, and the Tokyo Office opened
Reorganized as Niigata Bank, Ltd.Capital of 1 million yen
19121917
Successive mergers with banks in Niigata prefectureCorporate name changed to The Daishi Bank, Ltd.Capital of 5 million yen
1943
1945
1949195619591961
1963196419671968197019711973
Niigata Bank and Nou Bank merged, inherits business of 139 Bank, Kashiwazaki Bank, and Yasuzuka Bank (major merge of banks within the prefecture)Merged with Niigata Trust Company to operate trust services concurrently This brings the number of banks merged with to 29Capital of 30 million yenListed on the Niigata Stock ExchangeCapital of 500 million yenCapital of 1 billion yenBegan foreign exchange trading
Trust services discontinuedCapital of 2 billion yenCapital of 3 billion yenEDPS (computers) introducedCapital of 4.5 billion yenAdministration center establishedIntegrated online operationsCapital of 7.5 billion yenThe Daishi Bank celebrates 100 years since its foundingListed on the second section of the Tokyo Stock Exchange
1975
197719781979198019811982198319841985
19861987
1988
Capital of 10 billion yenChanged listing of shares to the first section of the Tokyo Stock ExchangeBegan direct dealings with overseas banksOutstanding deposits reach 1 trillion yenCapital of 13 billion yenNew online startedSecond online completionObtained all-inclusive approval for overseas correspondent agreementsGovernment bonds sales startedMutual use of ATMs with prefectural financial institutions startedBegan dealing operationsCapital of 17 billion yenThe New York Representative Office is openedAcquired charter for secured debenture trust business.Outstanding deposits reach 2 trillion yenBegan handling Japanese commercial paperThe Hong Kong Representative Office is openedIssued first unsecured convertible bond
1989199019911992
1993
19941995
1998
1999200020012002200320052006200820092011201220132015
2016
Began financial futures transaction servicesThe New York Office is openedFull-scale operation of third online system The New Head Office is completed
The Hong Kong Office is openedBegan operation as a trust services agentAcquired license for interest forward transactions and forward exchange transactionMedian price share issue through allotment to shareholdersCapital of 32.7 billion yenBegan handling open foreign currency depositsBegan over-the-counter sales of investment trustsThe New York Office is closedThe Hong Kong Office is closedBegan services as a non-life insurance agentBegan services as a life insurance agentOffered shares and conducted overseas IR activitiesBegan a securities brokerage businessNiigata Securities Co., Ltd. made a consolidated subsidiaryCommenced system joining Tsubasa ProjectTakada Sales Department and Nagaoka Sales Department establishedThe Shanghai Representative Office is openedOutstanding deposits reach 4 trillion yenThe Daishi Bank celebrates 140 years since its foundingStart of the Medium-Term Business Plan
“Step-up 2nd Stage - Further evolution for the 145th year”Niigata Securities Co., Ltd. became a wholly-owned subsidiary and name changed to Daishi Securities Co., Ltd.The Daishi Guaranty Co., Ltd. became a wholly-owned subsidiary
A complete view of the Head Office at the time of its founding
A complete view of the newly built Head Office in 1962
A complete view of the newly built Head Office in 1882
A complete view of the newly built Head Office in 1928A complete view of the current Head Office completed in 1992
42 43THE DAISHI BANK 2016 ANNUAL REPORT THE DAISHI BANK 2016 ANNUAL REPORT
DAISHI REPORT 2016Year ended March 31, 2016
