Flash Report for the First-Half Period Ended September 30, 2010
<Under Japanese GAAP>
November 12, 2010
Name of the listed company: The Bank of Okinawa, Ltd.
Code No.: 8397
Stock exchange: Tokyo Stock Exchange and Fukuoka Stock Exchange
URL: http://www.okinawa-bank.co.jp/
Representative: Masatoshi Asato, President
Contact: Tadashi Hanashiro, Director & General Manager of General Planning Division
Phone: +81-98-867-2141
Scheduled date for submission of Interim Securities Report: November 26, 2010
Date for initiation of dividend payments (subject to change): December 10, 2010
Preparation of supplemental explanatory materials: applicable
Holding of quarterly results briefing session: not applicable
* All amounts are rounded down to the nearest million yen.
1. Consolidated Results for the First-Half Period (April 1 to September 30, 2010)
(1) Operating results
(¥ million)
Ordinary income
¥27,559
3.0%
26,738
(2.6)
1st half ended September 30, 2010
1st half ended September 30, 2009
Ordinary profit
¥6,256
(6.4)%
6,687
128.8
Net income per share (¥)
Net income
¥3,292
(23.7)%
4,315
378.0
Net income per share, diluted (¥)
1st half ended September 30, 2010
¥157.37
¥157.33
1st half ended September 30, 2009
204.17
—
Note: Percentage figures for ordinary income, ordinary profit and net income represent year-on-year comparisons.
(2) Financial position
(¥ million)
Total assets
Net assets
Net assets
per share (¥)
¥5,330.92
5,195.69
Equity ratio*
Capital ratio**
As of September 30, 2010
¥1,690,524
¥113,598
6.5%
13.21%
1,610,665
111,378
6.7
12.76
As of March 31, 2010
Notes: Owners’ equity
As of September 30, 2010: ¥110,758 million As of March 31, 2010: ¥108,732 million
* Equity ratio is computed by dividing term-end balance of net assets after deduction of outstanding share subscription
rights and minority interests by the term-end balance of total assets.
** Capital ratio (on a consolidated basis; domestic standard) is calculated using the formula stipulated in the 2006 Financial
Services Agency Notification No.19 based on Article 14-2 of the Banking Law.
2. Dividends
Cash dividends per share (¥)
Quarter-end
Year-end
1st
2nd
3rd
¥—
¥32.50
¥—
¥32.50
Year ended March 31, 2010
—
32.50
Year ending March 31, 2011
—
32.50
Year ending March 31, 2011 (forecast)
Note: Revisions to dividend payment forecasts during the reporting period: not applicable
Annual
¥65.00
65.00
3. Operating Performance Forecasts for the Year Ending March 31, 2011
(April 1, 2010 to March 31, 2011)
Ordinary income
Ordinary profit
Net income
Full term
¥53,100 (2.7)%
¥11,100
(26.0)%
¥5,600
Notes: 1. Percentage figures represent year-on-year comparisons.
2. Revisions to performance forecasts during the reporting period: applicable
1
(41.4)%
(¥ million)
Net income per share
(¥)
¥268.60
4. Others
(1) Changes in the scope of consolidation
Inclusion: none
Exclusion: none
(2) Changes in significant accounting policies
Changes in accounting standard: applicable
Other: not applicable
(3) Number of ordinary shares issued at the end of the period
As of September 30, 2010: 21,400,000 shares
As of March 31, 2010: 21,815,881 shares
Number of shares in treasury at the end of the period
As of September 30, 2010: 623,401 shares
As of March 31, 2010: 888,553 shares
Average number of shares during the period
1st half ended September 30, 2010: 20,919,700 shares 1st half ended September 30, 2009: 21,136,440 shares
5. Non-Consolidated Results for the First-Half Period (April 1 to September 30, 2010)
(1) Operating results
( ¥ million)
1st half ended September 30, 2010
1st half ended September 30, 2009
Ordinary income
Ordinary profit
Net income
¥20,595
19,558
¥5,495 (7.5)%
5,941 117.3
¥2,975 (23.5)%
3,891 286.2
5.2%
(1.9)
Net income per share
(¥)
¥142.25
184.10
Note: Percentage figures represent year-on-year comparisons.
(2) Financial position
(¥ million)
As of September 30, 2010
As of March 31, 2010
Total assets
Net assets
¥1,672,761
1,595,354
¥107,535
105,781
Equity ratio*
6.4%
6.6
Net assets per
share (¥)
¥5,173.69
5,054.69
Capital ratio**
12.80%
12.39
Notes: Owners’ equity
As of September 30, 2010: ¥107,491 million As of March 31, 2010: ¥105,781 million
* Equity ratio is computed by dividing term-end balance of net assets after deduction of outstanding share subscription
rights and minority interests by the term-end balance of total assets.
** Capital ratio (on a non-consolidated basis; domestic standard) is calculated using the formula stipulated in the 2006
Financial Services Agency Notification No.19 based on Article 14-2 of the Banking Law.
6. Non-Consolidated Operating Performance Forecasts for the Year Ending March 31, 2011
(April 1, 2010 to March 31, 2011)
Ordinary income
Full term
¥39,300
(1.1)%
Ordinary profit
¥10,000 (24.9)%
Net income
¥5,400 (37.1)%
(¥ million)
Net income per share
(¥)
¥259.01
Note: Percentage figures represent year-on-year comparisons.
Presentation of Implementation Status of Interim Audit Procedures
This quarterly financial report is exempt from an interim audit based on the Financial Instruments and Exchange Law. An interim
audit had not been completed for the interim consolidated financial statements and interim financial statements at the time this
quarterly financial report was disclosed.
Notes on Appropriate Use of Business Performance Forecasts and Other Special Matters
1. Because the Bank falls under the category of a special purpose company (a company that conducts business as stipulated in
Article 17-5, Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Information), it prepares an interim
consolidated financial statement and an interim financial statement for the first-half fiscal period.
2. Forward-looking statements, including performance forecasts, contained in this material are based on information available to the
management of the Bank at the time of writing, as well as assumptions deemed to be reasonable. Actual results may differ
substantially due to various factors. The above performance forecasts (consolidated performance forecasts and non-consolidated
performance forecasts for the fiscal year ending March 31, 2011) have been revised from the full-term performance forecasts
announced on May 13, 2010.
2
Consolidated Balance Sheets
Millions of yen
As of September 30,
As of March 31, 2010
2010
Assets
Cash and due from bank
Call loans and bills bought
Monetary claims bought
Securities
Loans and bills discounted
Foreign exchanges
Lease claims and lease investment assets
Other assets
Tangible fixed assets
Intangible assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
¥
38,266
63,972
231
424,951
1,103,366
2,802
18,147
16,473
18,498
1,173
3,362
12,459
(13,181)
¥1,690,524
3
¥
34,463
37,550
196
352,887
1,125,898
1,544
18,786
17,125
18,867
1,258
3,127
12,661
(13,703)
¥1,610,665
(Continued)
Millions of yen
As of September 30,
As of March 31, 2010
2010
Liabilities
Deposits
Borrowed money
Foreign exchanges
Due to trust account
Other liabilities
Provision for bonuses
Provision for directors’ bonuses
Provision for retirement benefits
Provision for directors’ retirement benefits
Reserve for compensation for trust principal losses
Reserve for losses on interest refund
Reserve for reimbursement of dormant deposits
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net assets
Capital stock
Capital surplus
Retained earnings
Treasury stock
Shareholders’ equity
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Revaluation reserve for land
Valuation and translation adjustments
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets
¥1,498,989
14,465
77
23,033
19,211
704
11
5,848
19
187
183
55
¥1,426,137
14,042
87
17,228
20,136
684
0
—
1,679
12,459
1,576,926
1,679
12,661
1,499,287
22,725
17,629
66,853
(2,194)
105,013
4,778
23
942
5,744
43
2,796
113,598
¥1,690,524
4
—
5,919
287
233
132
55
22,725
17,630
65,704
(3,177)
102,882
4,899
8
942
5,849
—
2,646
111,378
¥1,610,665
Consolidated Statements of Income
Millions of yen
First-half period ended September 30
Ordinary income
Interest income:
of which, Interest on loans and discounts
of which, Interest and dividends on securities
Trust fees
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses:
of which, Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of noncurrent assets
Reversal of allowance for loans losses
Recoveries of written-off claims
Reversal of reserve for compensation of trust fund principal
losses
Reversal of reserve for reimbursement of dormant deposits
Extraordinary loss
Loss on disposal of noncurrent assets
Impairment loss
Loss on adjustment for changes of accounting standard for asset
retirement obligations
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income
5
2009
2010
¥26,738
16,548
14,439
1,952
171
1,875
7,658
484
20,051
2,131
1,929
710
5,630
9,974
1,604
6,687
212
2
―
165
¥27,559
16,175
14,248
1,805
175
1,881
8,749
577
21,303
2,390
2,118
722
5,497
9,965
2,728
6,256
177
0
―
130
43
46
—
—
65
16
49
260
38
0
—
6,833
2,074
346
2,421
221
96
¥ 4,315
6,173
2,906
(185)
2,720
3,452
160
¥3,292
Consolidated Statements of Changes in Net Assets
Millions of yen
First-half period ended September 30
2009
2010
¥22,725
—
¥22,725
¥22,725
—
¥22,725
¥17,630
¥17,630
—
—
—
¥17,630
—
(0)
(0)
¥17,629
¥57,430
¥65,704
(636)
4,315
—
6
3,685
¥61,116
(680)
3,292
(1,463)
—
1,148
¥66,853
¥ (2,171)
¥ (3,177)
(496)
—
—
(496)
¥ (2,667)
(480)
—
1,463
983
¥ (2,194)
Shareholders’ equity
Capital stock
Balance at the end of the previous period
Changes during the period
Balance at the end of the current period
Capital surplus
Balance at the end of the previous period
Changes during the period:
Disposal of treasury stock
Retirement of treasury stock
Total change during the period
Balance at the end of the current period
Retained earnings
Balance at the end of the previous period
Changes during the period:
Dividends from surplus
Net income
Retirement of treasury stock
Reversal of revaluation reserve for land
Total changes during the period
Balance at the end of the current period
Treasury stock
Balance at the end of the previous period
Changes during the period:
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Total changes during the period
Balance at the end of the current period
Total shareholders’ equity
Balance at the end of the previous period
Changes during the period:
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Reversal of revaluation reserve for land
Total changes during the period
Balance at the end of the current period
6
¥95,614
¥102,882
(636)
4,315
(496)
—
6
3,189
¥98,804
(680)
3,292
(480)
—
—
2,131
¥105,013
(Continued)
Millions of yen
First-half period ended September 30
2009
2010
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
¥
574
¥
3,914
3,914
4,488
¥
35
¥ 4,899
(120)
(120)
¥ 4,778
Deferred gains (losses) on hedges
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
¥
8
¥
(14)
(14)
21
¥
15
15
23
¥
970
¥
942
¥
(6)
(6)
963
¥
—
—
942
Revaluation reserve for land
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
Total valuation and translation adjustments
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
¥
1,579
¥ 5,849
¥
3,893
3,893
5,473
(105)
(105)
¥ 5,744
Subscription rights to shares
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
Minority interests
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
7
¥
—
¥
—
—
—
¥
—
¥
43
43
43
¥
2,276
¥ 2,646
¥
96
96
2,373
150
150
¥ 2,796
(Continued)
Millions of yen
First-half period ended September 30
2009
Total net assets
Balance at the end of the previous period
Changes during the period:
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Reversal of revaluation reserve for land
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
8
2010
¥ 99,471
¥111,378
(636)
4,315
(496)
—
6
3,989
7,178
¥106,650
(680)
3,292
(480)
—
—
88
2,219
¥113,598
Non-Consolidated Balance Sheets
Millions of yen
As of September 30,
As of March 31, 2010
2010
Assets
Cash and due from banks
Call loans
Monetary claims bought
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Intangible assets
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
¥
37,729
63,972
231
425,664
1,112,557
2,802
5,290
17,604
1,049
1,989
12,459
(8,588)
¥1,672,761
9
¥
34,005
37,550
196
353,597
1,138,622
1,544
5,444
17,809
1,120
1,732
12,661
(8,932)
¥1,595,354
(Continued)
Millions of yen
As of September 30,
As of March 31, 2010
2010
Liabilities
Deposits
Borrowed money
Foreign exchanges
Due to trust account
Other liabilities:
Income taxes payable
Lease obligations
Asset retirement obligations
Other
Provision for bonuses
Provision for directors’ bonuses
Provision for retirement benefits
Provision for directors’ retirement benefits
Reserve for compensation for trust principal losses
Reserve for reimbursement of dormant deposits
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
¥1,508,577
—
—
77
23,033
12,866
2,677
954
288
8,946
581
9
5,698
87
17,228
14,205
3,993
1,044
—
187
55
1,679
12,459
1,565,226
Net assets
Capital stock
Capital surplus:
Legal capital surplus
Other capital surplus
Retained earnings:
Legal retained earnings
Other retained earnings:
General reserve
Retained earnings brought forward
Treasury stock
Shareholders’ equity
Valuation difference on available-for-sale securities
Deferred gains (losses) on hedges
Revaluation reserve for land
Valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets
22,725
17,623
17,623
—
63,592
9,535
54,057
51,720
2,337
(2,194)
101,747
4,778
23
942
5,744
43
107,535
¥1,672,761
10
¥1,436,822
9,168
562
—
5,766
269
233
55
1,679
12,661
1,489,572
22,725
17,624
17,623
0
62,760
9,535
53,224
44,520
8,704
(3,177)
99,932
4,898
8
942
5,849
—
105,781
¥1,595,354
Non-Consolidated Statements of Income
Millions of yen
First-half period ended September 30
2009
Ordinary income
Interest income:
of which, Interest on loans and discounts
of which, Interest and dividends on securities
Trust fees
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses:
of which, Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Gain on disposal of noncurrent assets
Reversal of allowance for loan losses
Recoveries of written-off claims
Reversal of reserve for compensation of trust fund principal
losses
Reversal of reserve for reimbursement of dormant deposits
Extraordinary loss
Loss on disposal of noncurrent assets
Impairment loss
Loss on adjustment for changes of accounting standard for asset
retirement obligations
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
11
2010
¥19,558
16,075
13,983
1,943
171
1,883
965
461
13,617
2,040
1,944
1,225
27
9,182
1,141
5,941
167
2
—
121
¥20,595
15,717
13,805
1,798
175
1,882
2,233
586
15,099
2,305
2,134
1,118
49
9,299
2,326
5,495
155
0
—
107
43
—
65
15
49
—
46
—
258
35
0
221
6,043
1,775
376
2,151
¥ 3,891
5,392
2,625
(208)
2,416
¥ 2,975
Non-Consolidated Statements of Changes in Net Assets
Millions of yen
First-half period ended September 30
2009
2010
¥22,725
—
¥22,725
¥22,725
—
¥22,725
¥17,623
—
¥17,623
¥17,623
—
¥17,623
¥
0
¥
0
¥
—
—
—
0
¥
—
(0)
(0)
—
Shareholders’ equity
Capital stock
Balance at the end of the previous period
Changes during the period
Balance at the end of the current period
Capital surplus
Legal capital surplus:
Balance at the end of the previous period
Changes during the period
Balance at the end of the current period
Other capital surplus:
Balance at the end of the previous period
Changes during the period:
Disposal of treasury stock
Retirement of treasury stock
Total changes during the period
Balance at the end of the current period
Total capital surplus:
Balance at the end of the previous period
Changes during the period:
Disposal of treasury stock
Retirement of treasury stock
Total changes during the period
Balance at the end of the current period
Retained earnings
Legal retained earnings:
Balance at the end of the previous period
Changes during the period
Balance at the end of the current period
General reserve:
Balance at the end of the previous period
Changes during the period:
Transfer to general reserve
Total changes during the period
Balance at the end of the current period
12
¥17,624
¥17,624
—
—
—
¥17,624
—
(0)
(0)
¥17,623
¥ 9,535
—
¥ 9,535
¥ 9,535
—
¥ 9,535
¥42,920
¥44,520
1,600
1,600
¥44,520
7,200
7,200
¥51,720
(Continued)
Millions of yen
First-half period ended September 30
Retained earnings brought forward:
Balance at the end of the previous period
Changes during the period:
Dividends from surplus
Net income
Transfer to general reserve
Retirement of treasury stock
Reversal of revaluation reserve for land
Total changes during the period
Balance at the end of the current period
Total retained earnings:
Balance at the end of the previous period
Changes during the period:
Dividends from surplus
Net income
Transfer to general reserve
Retirement of treasury stock
Reversal of revaluation reserve for land
Total changes during the period
Balance at the end of the current period
Treasury stock
Balance at the end of the previous period
Changes during the period:
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Total changes during the period
Balance at the end of the current period
Total shareholders’ equity
Balance at the end of the previous period
Changes during the period:
Dividends from surplus
Net income
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Total changes during the period
Balance at the end of the current period
2009
2010
¥ 3,003
¥ 8,704
(636)
3,891
(1,600)
—
6
1,661
¥ 4,664
(680)
2,975
(7,200)
(1,463)
—
(6,367)
¥ 2,337
¥55,458
¥62,760
(636)
3,891
—
—
6
3,261
¥58,720
(680)
2,975
—
(1,463)
—
832
¥63,592
¥ (2,171)
¥ (3,177)
(496)
—
—
(496)
¥ (2,667)
(480)
—
1,463
983
¥ (2,194)
¥93,636
¥99,932
(636)
3,891
6
(496)
—
2,765
¥96,402
(680)
2,975
—
(480)
—
1,814
¥101,747
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
13
¥
574
3,913
3,913
¥ 4,488
¥ 4,898
(119)
(119)
¥ 4,778
(Continued)
Millions of yen
First-half period ended September 30
2009
2010
Deferred gains (losses) on hedges
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
¥
35
¥
8
(14)
(14)
21
¥
15
15
23
¥
¥
970
¥
942
¥
(6)
(6)
963
¥
—
—
942
Revaluation reserve for land
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
Total valuation and translation adjustments
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
Subscription rights to shares
Balance at the end of the previous period
Changes during the period:
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
Total net assets
Balance at the end of the previous period
Changes during the period:
Dividends from surplus
Net income
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than shareholders’ equity
Total changes during the period
Balance at the end of the current period
14
¥
1,580
¥ 5,849
¥
3,892
3,892
5,472
(104)
(104)
¥ 5,744
¥
—
¥
—
—
—
¥
—
¥
43
43
43
¥ 95,216
¥105,781
(636)
3,891
6
(496)
—
3,892
6,657
¥101,874
(680)
2,975
—
(480)
—
(61)
1,753
¥107,535