19SAKURABANKTheSakuraBank,LimitedINTERIMFINANCIALREPORTApril–September199816Contents1Non-ConsolidatedFinancialHighlights2AMessagefromtheManagement4ReinforcingCost-CompetitivenessthroughReorganizationandStructuralReform5FinancialSection16OverseasOffices17BoardofDirectors17StockInformationCorporateDataHeadOffice3-1,KudanMinami1-chome,Chiyoda-ku,Tokyo100-8611,JapanTel:+81332303111Telex:J22378MITKBKHibiyaHeadquarters1-2,Yurakucho1-chome,Chiyoda-ku,Tokyo100-0006,JapanTel:+81335011111Telex:J22378MITKBKKansaiHeadquarters56,Naniwa-machi,Chuo-ku,Kobe650-8660,JapanTel:+81783318101Telex:J78823MITKBKNetworkTotalDomesticOffices481Branches423Subbranches51Agencies7TotalOverseasOffices84Branches20Subbranches3Representativeoffices13Subsidiaries21Subsidiaries’branches13Affiliatesandassociates14(AsofDecember31,1998)NumberofEmployees17,433(AsofSeptember31,1998)InvestorRelationsDepartmentPlanningDivisionTheSakuraBank,LimitedTel:+81332303111http://www.sakura.co.jp/bank/1Non-ConsolidatedFinancialHighlightsTheSakuraBank,LimitedMillionsofPercentageMillionsofYenU.S.DollarsChangeSixMonthsEndedSeptember301998199719981998/1997FortheSixMonthsTotalIncome¥1,054,841¥1,244,910$7,793(15.3)%TotalExpenses1,008,6621,223,5017,452(17.6)InterimIncomebeforeIncomeTaxes46,17821,408341115.7InterimNetIncome32,23417,06423888.9AtTermEndTotalAssets51,221,59353,267,935378,438(3.8)LoansandBillsDiscounted34,876,08436,687,175257,673(4.9)Securities6,662,6547,170,49049,225(7.1)Deposits33,469,58338,345,644247,281(12.7)Stockholders’Equity1,314,2201,551,9069,709(15.3)CapitalRatio(Consolidated)(%)9.60%9.00%—5.3%PercentageYenU.S.DollarsChangePerShareofCommonStockInterimNetIncome¥(8.55)¥(4.49)$0.06)(90.4%Stockholders’Equity336.69380.972.48(11.6)CashDividendsperShareCommonStock4.254.250.030PreferredStock:SeriesI—22.50——SeriesII7.507.500.050Notes:1.Allnon-consolidatedfigureshavebeentruncatedratherthanrounded.2.Theaccompanyingfinancialstatementsarepresented,forconvenienceonly,inU.S.dollarsbyarithmeticallytranslatingallJapaneseyenamountsat¥135.35=US$1,theexchangerateineffectonSeptember30,1998.TotalIncome(BillionsofYen)FY1996FY1997FY1998FY1996FY1997FY1998September30,1997March31,1998September30,1998TotalAssets(TrillionsofYen)CapitalRatio(Consolidated)(%)05001,0001,5002,0002,5003,000010203040506005678910SixmonthsendedSeptember30YearendedMarch31AsofSeptember30AsofMarch311,2812,5611,2442,9211,05452.853.153.251.651.29.009.129.602Inthefirsthalfoffiscal1998,endedSeptember30,1998,Japan’seconomicandfinancialconditionscontin-uedtoworsenasthenationslidfurtherintorecession.Thegovernmenthasrespondedwitheconomicstimulusmeasures,includingataxcuttotaling¥9.3trillionandanaggressivebudgetproposalforfiscal1999,whichwereannouncedinDecember1998.Additionalmeasures,suchasstructuralreforms,areanticipated.Stepshavealsobeentakentoimprovethefinancialsituation,includingtheestablishmentofalegalframeworktoensurethestabilityofJapan’sfinancialsystem.Financialinstitutionsarethusfacedwithanoperatingenvironmentmoredifficultthananyencounteredtodate—withthechallengeofensuringoperatingstrategiesreflectcurrentrealitiesandinredefiningtheirownfundamentalroles.Inthischangingenvironment,theBankcontinuestoreaffirmitsmissionasafinancialinstitutionthatrespondstocustomerneedsbyearningthetrustofcus-tomersandprovidingthemwithcutting-edgefinancialservices.Tothisend,t...
