1Nov.21,2000TheSakuraBank,Ltd.InterimFinancialResultsforthePeriodEndedonSept.30,2000WewouldliketoexplainSakuraBank’s“InterimfinancialresultsfortheperiodendedonSeptember30,2000”accordingto“ReferenceMaterials”distributedseparatelyfromSummaryofAccounts.1.GeneralConditionofInterimFinancialResultsPleaseseePage1.Firstly,wewouldliketoexplain“Non-consolidatedbusinessperformance”fortheperiod.“Grossoperatingprofit”onthe1stlinedecreasedby￥8.5billion,comparedwiththesameperiodofthepreviousyear.“Grossoperatingprofit(domestic)”onthe3rdlineroseby￥14.5billionowingtoanincreasein“Feesandcommissions”and“Otheroperatingprofit”causedbyeffectsofsalesofinvestmenttrustandprofitsfrommark-to-marketaccountingrespectively.“Grossoperatingprofit(international)”onthe9thline,however,fellby￥23.1billionowingtoadecreaseinprofitsonfundingoperationsbecauseofthedollarinterestrates’rise.“Expenses”onthe15thlinesharplyreducedby￥16.3billioncomparedwiththesameperiodofthepreviousyear.“Personnelexpenses”declinedduetoreductionsinstaffand“Non-personnelexpenses”fellasaresultofthedrasticandextensiveexpensesreduction.Inaddition,“Taxes”alsoreduced.Asaconsequence,“Netoperatingprofitbeforenetadditiontogeneralreserveforpossibleloanlosses”onthe19thlineincreasedto￥166.8billion.“Netoperatingprofit”onthe21stline,whichwasobtainedbyaddingnetadditiontogeneralreserveforpossibleloanlossestotheabove,climbedby￥19.5billioncomparedwiththesameperiodofthepreviousyear,to￥183.6billion.“Corenetoperatingprofit”onthe23rdline,whichshowsprofitabilityofcorebankingbusinessexcludinggainsandlossesonbonds,roseby￥8.8billioncomparedwiththesameperiodofthepreviousyear,to￥168.2billion.2Asaresultofstrengtheningcommercialbankingbusiness,andrestructuringbusinessesorganizations,declaredasourmainmanagementpolicy,“Netoperatingprofit”and“Corenetoperatingprofit”fortheinterimperiodshowedthelargestfigureinourhistory.Next,wewouldliketoexplain“Extraordinaryprofitsandlosses”.For“Gainsandlossesonstocksandothersecurities”onthe25thline,weposted￥16.5billionlossasaresultofoffsetting“Gainsonsales”against“Lossesonsales”and“Lossesondiminutioninvalue”.For“Loanlosses”,wedisposedof￥115.4billionasaresultof“Directwritten-offs”and“Netadditiontospecificreserves”causedbythemoreconservativeborrowerclassificationand“NetadditiontoreserveforpossiblelossesfromloanssoldtoCCPC”.Asaconsequence,“Operatingprofit”fortheperiodonthe37thlinewas￥115.6billion.“Netincome”onthe47thlineamountedto￥51.9billion.Pleaseturntopage2.Weexplain“Consolidatedbusinessperformance”fortheperiod.“Grossoperatingprofit”onthe1stlineincreasedby￥0.7billionmainlyowingtoanincreasein“Feesandcommissions”ofthebankanditsaffiliatedcompanies.“Operatingexpenses”onthe6thlinedecreasedby￥30.5billionthrougheffectofrestructuringmeasures.For“Loanlosses”onthe7thline,weposted￥155.8billionaddingloanlossesofsubsidiariesandnon-bankaffiliatestothatonanon-consolidatedbasis.Inaddition,byaddingotheritems,suchas“Gainsandlossesonstocksandothersecurities”and“Gainsandlossesoninvestmentbasedontheequitymethod”totheabove,“Operatingprofit”onthe15thlineincreasedby￥31.9billion,comparedwiththesameperiodofthepreviousyear,to￥105.9billion.“Netincome”on21stlineobtainedafteraddingitems,suchas“Gainsandlossesondisposalofpremises”and“Incometaxes”decreasedby￥9.5billion,...
