Mizuho Securities : Summary of Consolidated Financial Statements for the Nine Months Ended December 31, 2015 Under Japanese GAAP(PDF/248KB)

200e351e-70c2-43f5-86d6-07d9713141df.pdf

January 29, 2016‌

Summary of Consolidated Financial Statements for the Nine Months Ended December 31, 2015 Under Japanese GAAP

Company's name: Mizuho Securities Co., Ltd.	URL: http://www.mizuho-sc.com/
Representative: Hiroshi Motoyama, President
Contact: Akio Arai, General Manager of Accounting Dept. on +81 3-5208-3210
Preparation of supplemental explanatory documents: Yes
Holding of quarterly presentation meeting: No

1. Consolidated Financial Results for the Nine Months Ended December 31, 2015 (April 1, 2015 to December 31, 2015)

   (Amounts are rounded down to the nearest millions of yen)

   (Note) Comprehensive income:	December 31, 2015:	49,450 million yen	(-2.3%)
   December 31, 2014:	50,630 million yen	(-9.8%)

2. Consolidated operating results (Percentage figures represent year-on-year changes)

   Operating revenues		Net operating revenues		Operating income		Ordinary income
   Nine months ended	millions of yen	%	millions of yen	%	millions of yen	%	millions of yen	%
   December 31, 2015	355,815	12.5	315,052	11.1	66,604	19.1	66,196	14.9
   December 31, 2014	316,305	12.5	283,459	14.5	55,911	54.3	57,634	52.9

   
   

   Net income attributable to owners of parent		Net income per share	Net income per share - fully diluted
   Nine months ended	millions of yen	%	yen	yen
   December 31, 2015	50,361	18.1	24.99	―
   December 31, 2014	42,645	(9.7)	21.16	―

   
   

3. Consolidated financial positions

   Total assets	Net assets	Equity ratio
   December 31, 2015	millions of yen	millions of yen	%
   	22,628,072	737,934	3.1
   March 31, 2015	21,048,338	706,160	3.2

   Reference: Equity (i.e. "Shareholders' equity" and "Accumulated other comprehensive income"):

   December 31, 2015:	712,472 million yen
   March 31, 2015:	681,629 million yen

   
   

4. Notes

   
   

5. Changes in significant subsidiaries (changes in specified subsidiaries accompanying changes in the scope of consolidation) during the period: None

   
   

6. Application of specific accounting methods in the preparation of quarterly consolidated financial statements: None

   
   

7. Changes in accounting policies, estimates, and restatements:

8. Changes in accounting policies in accordance with revisions of accounting standards: Yes

9. Changes other than 1) above: None

10. Changes in accounting estimates: None

11. Restatements: None

    (Note) Changes in accounting policies in accordance with revisions of accounting standards are described in "Changes in accounting policies, estimates, and restatements" in "1.Summary Information (Notes)" on page 2.

12. Number of outstanding shares (common stock)

    
    

13. Number of shares issued at end of the period (including treasury stock): December 31, 2015: 2,015,102,652 shares

March 31, 2015: 2,015,102,652 shares




2)	Number of treasury stock at end of the period:
December 31, 2015:	- shares
March 31, 2015:	- shares




3) Average number of outstanding shares for the nine months:

Nine months ended December 31, 2015 2,015,102,652 shares

Nine months ended December 31, 2014 2,015,102,652 shares




* Other important matters Not applicable

1.	Summary Information (Notes)	p.2
Changes in accounting policies, estimates, and restatements	p.2
2.	Quarterly Consolidated Financial Statements	p.3
(1) Quarterly Consolidated Balance Sheets	p.3
(2) Quarterly Consolidated Statements of Income and Comprehensive Income	p.6
(3) Note on the going-concern assumption	p.8
(4) Note on material changes in shareholders' equity	p.8
3.	Supplemental Information	p.8
(1) Commissions	p.8
(2) Net gain on trading	p.8
(3) Capital adequacy requirement ratio	p.9
(4) Quarterly Consolidated Statements of Income	p.10
4.	(Reference) Quarterly Non-consolidated Financial Statements	p.11
(1) (Reference) Quarterly Non-consolidated Balance Sheets	p.11
(2) (Reference) Quarterly Non-consolidated Statements of Income	p.13

APPENDIX [INDEX]‌ 1. Summary Information (Notes) Changes in accounting policies, estimates, and restatements

(Changes in accounting policies)

The Company has applied "Revised Accounting Standard for Business Combinations (ASBJ Statement No. 21, September 13, 2013) (hereinafter, the "Business Combinations Accounting Standard"), "Revised Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013) (hereinafter, the "Consolidation Accounting Standard"), "Revised Accounting Standard for Business Divestitures" (ASBJ Statement No. 7, September 13, 2013) (hereinafter, the "Business Divestitures Accounting Standard" ) and other standards from the first quarter ended June 30, 2015. Accordingly, the accounting methods have been changed to record the difference arising from changes in equity in subsidiaries which the Company continues to control as capital surplus, and to record business acquisition costs as expenses for the fiscal year in which incurred. In addition, regarding business combinations occurring on or after April 1, 2015, the accounting method has been changed to retroactively reflect adjustments to the amount allocated to acquisition costs arising from the finalization of the provisional accounting treatment on the consolidated financial statements of the period in which the business combination occurs. Furthermore, presentation of Net Income and others has been changed and presentation of Minority Interests has been changed to Non-controlling Interests. In order to reflect the changes in presentation of financial statements, reclassification was made accordingly in the quarterly consolidated financial statements for the nine months ended December 31, 2014 and the consolidated financial statements for the fiscal year ended March 31, 2015.

The Business Combinations Accounting Standard and other standards have been applied in accordance with the transitional treatment set forth in Article 58-2 (3) of the Business Combinations Accounting Standard, Article 44-5 (3) of the Consolidation Accounting Standard and Article 57-4 (3) of the Business Divestitures Accounting Standard. The cumulative effects arising from the retroactive application of these new accounting policies to all the previous fiscal years were added to or deducted from capital surplus and retained earnings as of April 1, 2015.

As a result, Capital Surplus decreased by 1,124 million yen and Retained Earnings increased by 1,124 million yen as of April 1, 2015. In addition, the impact of applying these accounting standards to Net Income for the nine months ended December 31, 2015 is nil.




2. Quarterly Consolidated Financial Statements‌
(1) Quarterly Consolidated Balance Sheets
(Millions of yen)
As of March 31, 2015	As of December 31, 2015
Assets
Current assets
Cash and bank deposits	447,202	589,133
Cash segregated as deposits for customers and others	159,285	168,262
Trading assets	5,858,340	7,596,427
Trading securities and others	4,108,556	5,550,130
Derivatives	1,749,783	2,046,297
Receivables - unsettled trades	542,175	―
Operating investment securities	55,508	43,412
Operating loans receivable	14,303	17,769
Receivables related to margin transactions	77,486	100,193
Loans receivable under margin transactions	53,331	61,522
Cash collateral for borrowed securities under margin transactions	24,155	38,671
Collateralized short-term financing agreements-receivable	13,123,583	13,288,980
Deposits paid for securities borrowed	4,047,550	3,747,182
Securities purchased under agreements to resell	9,076,033	9,541,798
Advances paid	2,756	2,263
Securities: fail to deliver	28,452	87,490
Short-term loans receivable	6,800	6,967
Securities	5,811	7,223
Deferred tax assets	24,896	11,885
Other current assets	448,064	453,316
Less: Allowance for doubtful accounts	(93)	(88)
Total current assets	20,794,574	22,373,238
Noncurrent assets
Property and equipment	39,633	41,064
Intangible assets	89,326	92,906
Investments and other assets	124,803	120,862
Investment securities	78,149	74,146
Long-term guarantee deposits	13,769	13,636
Net defined benefit asset	23,342	24,521
Deferred tax assets	758	763
Other	13,844	11,475
Less: Allowance for doubtful accounts	(5,061)	(3,681)
Total noncurrent assets	253,763	254,833
Total assets	21,048,338	22,628,072




(Millions of yen)‌
As of March 31, 2015	As of December 31, 2015
Liabilities
Current liabilities
Trading liabilities	4,858,549	5,295,780
Trading securities and others	3,190,401	3,354,339
Derivatives	1,668,148	1,941,441
Receivables - unsettled trades	―	371,504
Payables related to margin transactions	34,980	40,070
Borrowings on margin transactions	9,240	14,355
Cash collateral for loaned securities under margin transactions	25,739	25,715
Collateralized short-term financing agreements-payable	11,980,429	12,718,985
Deposits received for securities loaned	1,416,402	1,667,017
Securities sold under agreements to repurchase	10,564,026	11,051,967
Deposits received	189,288	236,208
Guarantee deposits received	529,112	507,296
Securities: fail to receive	28,627	38,960
Short-term borrowings	788,896	756,777
Commercial paper	456,500	590,000
Bonds and notes due within one year	179,556	133,829
Lease obligations	415	405
Income taxes payable	11,025	2,562
Accrued employees' bonuses	31,206	23,631
Provision for bonus point redemption	783	564
Other current liabilities	72,307	65,060
Total current liabilities	19,161,679	20,781,639
Noncurrent liabilities
Bonds and notes	603,908	649,662
Long-term borrowings	524,000	403,900
Lease obligations	1,353	1,024
Deferred tax liabilities	25,497	27,426
Provision for directors' retirement benefits	283	291
Provision for executive officers' retirement benefits	143	168
Net defined benefit liability	18,557	19,368
Other noncurrent liabilities	5,144	4,698
Total noncurrent liabilities	1,178,889	1,106,540
Statutory reserves
Reserve for financial instruments transaction liabilities	1,607	1,956
Total statutory reserves	1,607	1,956
Total liabilities	20,342,177	21,890,137




(Millions of yen)‌
As of March 31, 2015	As of December 31, 2015
Net assets
Shareholders' equity
Common stock	125,167	125,167
Capital surplus	359,999	358,874
Retained earnings	227,145	261,502
Total shareholders' equity	712,312	745,544
Accumulated other comprehensive income (loss)
Net unrealized gains on (operating) investment securities, net of tax	24,854	23,372
Foreign currency translation adjustments	(63,399)	(63,783)
Remeasurement of defined benefit plans	7,862	7,338
Total accumulated other comprehensive income (loss)	(30,682)	(33,072)
Non-controlling interests	24,531	25,462
Total net assets	706,160	737,934
Total liabilities and net assets	21,048,338	22,628,072




(2) Quarterly Consolidated Statements of Income and Comprehensive Income‌
Quarterly Consolidated Statements of Income
For the nine months ended December 31, 2014 and 2015
(Millions of yen)
Nine months ended December 31, 2014	Nine months ended December 31, 2015
Operating revenues
Commissions	161,613	189,769
Brokerage commissions	47,487	46,910
Underwriting and selling fees, and commissions from solicitation to qualifying investors	35,874	46,474
Offering, selling, and other commissions and fees, and commissions from solicitation to qualifying investors	27,348	31,593
Other commissions and fees	50,903	64,791
Net gain on trading	91,549	89,777
Net gain on operating investment securities	11,996	17,672
Interest and dividend income	51,145	58,595
Total operating revenues	316,305	355,815
Interest expenses	32,845	40,763
Net operating revenues	283,459	315,052
Selling, general and administrative expenses	227,548	248,448
Transaction-related expenses	46,877	56,044
Personnel expenses	105,397	109,859
Real estate expenses	25,371	25,728
Administrative expenses	18,464	23,966
Depreciation and amortization	16,659	17,653
Taxes and dues	3,527	3,341
Provision of allowance for doubtful accounts	261	(392)
Other	10,988	12,246
Operating income	55,911	66,604
Non-operating income	2,527	2,459
Non-operating expenses	804	2,866
Ordinary income	57,634	66,196
Extraordinary gain	465	13,446
Gain on sales of noncurrent assets	75	48
Gain on sales of investment securities	389	575
Indemnity receipt from the erroneous stock order	―	12,822
Extraordinary loss	1,632	1,837
Loss on sales of noncurrent assets	―	8
Loss on disposal of noncurrent assets	385	126
Loss on sales of investment securities	74	77
Loss on impairment of investment securities	8	0
Loss on impairment of golf club membership	0	0
Impairment losses	13	139
Head office transfer cost	852	1,000
Cost incurred in opening of joint branches	―	135
Provision of reserve for financial instruments transaction liabilities	297	348
Income before income taxes and non-controlling interests	56,467	77,806
Income taxes - current	9,253	9,910
Income taxes - deferred	3,786	15,870
Total income taxes	13,039	25,781
Net income	43,427	52,024
Net income attributable to non-controlling interests	782	1,663
Net income attributable to owners of parent	42,645	50,361




Quarterly Consolidated Statements of Comprehensive Income‌
For the nine months ended December 31, 2014 and 2015
(Millions of yen)
Nine months ended December 31, 2014	Nine months ended December 31, 2015
Net income	43,427	52,024
Other comprehensive income (loss)
Net unrealized gains (losses) on (operating) investment securities, net of tax	3,797	(1,558)
Foreign currency translation adjustments	3,590	(482)
Remeasurement of defined benefit plans	(185)	(533)
Share in other comprehensive income of affiliates accounted for using equity method	(0)	(0)
Total other comprehensive income (loss)	7,202	(2,574)
Comprehensive income	50,630	49,450
(Breakdown)
Attributable to:
Owners of parent	48,050	47,970
Non-controlling interests	2,579	1,479

1. Note on the going-concern assumption‌

   Not applicable

   
   

2. Note on material changes in shareholders' equity

Not applicable




3. Supplemental Information
1. Commissions

   	Nine months ended December 31, 2014	Nine months ended December 31, 2015	Increase/(Decrease)
   			Amount	Percentage (%)
   Brokerage commissions	47,487	46,910	(576)	(1.2)
   Equities	34,784	33,772	(1,012)	(2.9)
   Bonds	12,256	12,459	203	1.7
   Underwriting and selling fees, and
   commissions from solicitation to	35,874	46,474	10,600	29.5
   qualifying investors
   Equities	10,181	15,904	5,722	56.2
   Bonds	25,661	30,319	4,658	18.2
   Offering, selling, and other commissions
   and fees, and commissions from	27,348	31,593	4,245	15.5
   solicitation to qualifying investors
   Other commissions and fees	50,903	64,791	13,887	27.3
   Total	161,613	189,769	28,156	17.4

2. Breakdown by items

   
   

   
   

   	Nine months ended December 31, 2014	Nine months ended December 31, 2015	Increase/(Decrease)
   			Amount	Percentage (%)
   Equities	46,037	55,014	8,977	19.5
   Bonds	42,260	51,420	9,160	21.7
   Beneficiary certificates	57,721	61,625	3,903	6.8
   Others	15,594	21,708	6,114	39.2
   Total	161,613	189,769	28,156	17.4

3. Breakdown by instruments

   
   

   
   

4. Net gain on trading

   
   

   (Millions of yen)

   
   

   (Millions of yen)

   
   

   (Millions of yen)

   	Nine months ended December 31, 2014	Nine months ended December 31, 2015	Increase/(Decrease)
   			Amount	Percentage (%)
   Equities, etc.	20,480	24,217	3,737	18.2
   Bonds, etc. · Others	71,068	65,559	(5,509)	(7.8)
   Bonds, etc.	83,946	42,710	(41,236)	(49.1)
   Others	(12,877)	22,849	35,727	-
   Total	91,549	89,777	(1,771)	(1.9)

5. Capital adequacy requirement ratio‌
6. Consolidated base

   
   

   (Millions of yen)

   As of March 31, 2015	As of December 31, 2015
   Basic items	Total capital	(A)	656,294	707,223
   Supplemental items	Net unrealized gains on (operating) investment securities, net of tax, etc.		32,716	30,711
   	Reserve for financial instruments transaction liabilities, etc.		1,607	1,956
   	Allowance for doubtful accounts		71	68
   	Subordinated long-term borrowings		74,000	55,000
   	Subordinated short-term borrowings		271,000	250,000
   Total		(B)	379,396	337,736
   Deducted assets		(C)	219,570	222,309
   Equity after deduction (A) + (B) - (C)		(D)	816,120	822,650
   Amount equivalent to risk	Amount equivalent to market risk		166,488	132,311
   	Amount equivalent to counterparty risk		61,967	55,504
   	Amount equivalent to fundamental risk		75,845	84,089
   Total		(E)	304,302	271,905
   Consolidated capital adequacy requirement ratio		(D)/(E) * 100	268.1%	302.5%

   
   

7. Non-consolidated base




(Millions of yen)

As of March 31, 2015	As of December 31, 2015
Basic items	Total capital	(A)	601,813	646,683
Supplemental items	Net unrealized losses on (operating) investment securities, net of tax, etc.		(2,981)	(3,698)
	Reserve for financial instruments transaction liabilities, etc.		1,589	1,938
	Allowance for doubtful accounts		11	12
	Subordinated long-term borrowings		74,000	55,000
	Subordinated short-term borrowings		271,000	250,000
Total		(B)	343,619	303,252
Deducted assets		(C)	309,089	334,632
Equity after deduction (A) + (B) - (C)		(D)	636,343	615,302
Amount equivalent to risk	Amount equivalent to market risk		112,205	95,410
	Amount equivalent to counterparty risk		32,234	30,407
	Amount equivalent to fundamental risk		54,480	59,763
Total		(E)	198,920	185,581
Capital adequacy requirement ratio		(D)/(E) * 100	319.8%	331.5%

8. Quarterly Consolidated Statements of Income‌




(Millions of yen)

Third quarter ended December 2014	Fourth quarter ended March 2015	First quarter ended June 2015	Second quarter ended September 2015	Third quarter ended December 2015
Oct. 1, 2014 -	Jan. 1, 2015 -	Apr. 1, 2015 -	Jul. 1, 2015 -	Oct. 1, 2015 -
Dec. 31, 2014	Mar. 31, 2015	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2015
Operating revenues	119,179	125,026	120,985	116,042	118,787
Commissions	60,584	66,969	65,118	59,870	64,781
Brokerage commissions	17,940	18,284	16,319	14,595	15,995
Equities	12,836	13,369	11,742	10,428	11,601
Bonds	4,872	4,700	4,405	3,876	4,178
Underwriting and selling fees, and commissions from solicitation to qualifying investors	16,485	17,117	14,451	15,315	16,707
Equities	4,469	5,186	4,267	5,092	6,544
Bonds	12,000	11,783	10,129	10,140	10,049
Offering, selling, and other commissions and fees, and commissions from solicitation to qualifying investors	8,023	10,720	12,840	10,179	8,573
Other commissions and fees	18,136	20,847	21,506	19,779	23,504
Net gain on trading	39,451	30,551	32,036	29,716	28,024
Equities, etc.	14,638	3,065	11,779	3,821	8,615
Bonds, etc. · Others	24,812	27,486	20,256	25,894	19,408
Bonds, etc.	36,651	21,539	14,040	23,622	5,046
Others	(11,839)	5,947	6,215	2,271	14,362
Net gain on operating investment securities	1,613	6,269	5,630	8,387	3,655
Interest and dividend income	17,530	21,236	18,200	18,068	22,326
Interest expenses	11,908	12,933	11,677	13,430	15,655
Net operating revenues	107,271	112,093	109,307	102,612	103,132
Selling, general and administrative expenses	82,573	83,620	84,574	81,041	82,831
Transaction-related expenses	17,445	17,508	18,491	18,761	18,791
Personnel expenses	38,911	35,467	37,550	34,874	37,434
Real estate expenses	8,703	9,073	8,664	8,584	8,479
Administrative expenses	6,479	7,250	8,075	8,830	7,060
Depreciation and amortization	5,762	6,972	5,669	5,999	5,984
Taxes and dues	1,307	945	1,524	782	1,033
Other	3,963	6,402	4,597	3,208	4,047
Operating income	24,698	28,472	24,732	21,570	20,300
Non-operating income	770	874	909	1,638	(88)
Non-operating expenses	(104)	504	1,001	497	1,367
Ordinary income	25,573	28,842	24,640	22,711	18,844
Extraordinary gain	51	233	552	12,824	69
Extraordinary loss	237	941	421	603	812
Income before income taxes and non-controlling interests	25,387	28,134	24,771	34,933	18,101
Income taxes - current	2,868	7,502	3,990	2,510	3,409
Income taxes - deferred	2,904	2,919	3,702	9,670	2,498
Net income	19,613	17,713	17,078	22,752	12,194
Net income attributable to non-controlling interests	286	1,706	633	473	556
Net income attributable to owners of parent	19,326	16,006	16,445	22,278	11,637




4. (Reference) Quarterly Non-consolidated Financial Statements‌
(1) (Reference) Quarterly Non-consolidated Balance Sheets
(Millions of yen)
As of March 31, 2015	As of December 31, 2015
Assets
Current assets
Cash and bank deposits	320,613	421,168
Cash segregated as deposits for customers and others	151,401	159,765
Trading assets	4,184,018	5,504,335
Trading securities and others	2,494,775	3,511,432
Derivatives	1,689,243	1,992,903
Receivables - unsettled trades	580,287	―
Operating investment securities	17,516	20,296
Operating loans receivable	3,240	3,130
Receivables related to margin transactions	74,794	97,522
Loans receivable under margin transactions	50,849	58,994
Cash collateral for borrowed securities under margin transactions	23,945	38,528
Collateralized short-term financing agreements-receivable	4,109,246	3,809,096
Deposits paid for securities borrowed	4,060,231	3,753,219
Securities purchased under agreements to resell	49,014	55,877
Advances paid	189	99
Securities: fail to deliver	25,582	13,614
Short-term loans receivable	46,084	50,704
Deferred tax assets	21,160	8,181
Other current assets	251,154	294,684
Less: Allowance for doubtful accounts	(12)	(13)
Total current assets	9,785,276	10,382,587
Noncurrent assets
Property and equipment	15,678	15,164
Intangible assets	34,344	39,311
Investments and other assets	297,869	315,796
Investment securities	241,190	246,399
Long-term guarantee deposits	12,670	12,315
Prepaid pension cost	12,746	14,462
Deferred tax assets	8,297	4,987
Other	28,018	41,308
Less: Allowance for doubtful accounts	(5,055)	(3,677)
Total noncurrent assets	347,891	370,272
Total assets	10,133,168	10,752,860







(Millions of yen)‌
As of March 31, 2015	As of December 31, 2015
Liabilities
Current liabilities
Trading liabilities	3,909,239	3,826,962
Trading securities and others	2,294,228	1,937,178
Derivatives	1,615,010	1,889,784
Receivables - unsettled trades	―	334,965
Payables related to margin transactions	33,922	39,465
Borrowings on margin transactions	8,383	13,888
Cash collateral for loaned securities under margin transactions	25,539	25,576
Collateralized short-term financing agreements-payable	3,052,857	3,324,993
Deposits received for securities loaned	1,417,601	1,667,947
Securities sold under agreements to repurchase	1,635,255	1,657,046
Deposits received	160,613	205,291
Guarantee deposits received	110,135	113,834
Securities: fail to receive	8,685	2,775
Short-term borrowings	626,792	599,179
Commercial paper	456,500	590,000
Bonds and notes due within one year	67,220	60,402
Lease obligations	414	404
Income taxes payable	2,549	880
Accrued employees' bonuses	14,757	8,618
Provision for bonus point redemption	783	564
Other current liabilities	30,410	23,600
Total current liabilities	8,474,880	9,131,939
Noncurrent liabilities
Bonds and notes	496,002	551,337
Long-term borrowings	524,000	403,900
Lease obligations	1,351	1,023
Provision for retirement benefits	16,952	17,739
Other noncurrent liabilities	2,431	1,997
Total noncurrent liabilities	1,040,738	975,998
Statutory reserves
Reserve for financial instruments transaction liabilities	1,589	1,938
Total statutory reserves	1,589	1,938
Total liabilities	9,517,208	10,109,875
Net assets
Shareholders' equity
Common stock	125,167	125,167
Capital surplus	381,649	381,649
Retained earnings	112,125	139,866
Total shareholders' equity	618,941	646,683
Valuation and translation adjustments
Net unrealized gains on (operating) investment securities, net of tax	24,524	23,976
Net deferred gains or losses on hedges, net of tax	(27,505)	(27,674)
Total valuation and translation adjustments	(2,981)	(3,698)
Total net assets	615,960	642,984
Total liabilities and net assets	10,133,168	10,752,860




(2) (Reference) Quarterly Non-consolidated Statements of Income‌
For the nine months ended December 31, 2014 and 2015
(Millions of yen)
Nine months ended December 31, 2014	Nine months ended December 31, 2015
Operating revenues
Commissions	107,465	120,214
Net gain on trading	89,251	92,710
Net gain on operating investment securities	1,817	4,950
Interest and dividend income	23,445	18,318
Total operating revenues	221,979	236,194
Interest expenses	18,530	18,808
Net operating revenues	203,448	217,385
Selling, general and administrative expenses	158,301	172,935
Transaction-related expenses	31,530	38,670
Personnel expenses	64,772	63,723
Real estate expenses	18,874	18,895
Administrative expenses	28,011	35,791
Depreciation and amortization	10,288	10,711
Taxes and dues	2,224	2,835
Provision of allowance for doubtful accounts	245	(387)
Other	2,353	2,694
Operating income	45,146	44,450
Non-operating income	3,929	7,343
Non-operating expenses	348	891
Ordinary income	48,726	50,901
Extraordinary gain	394	13,222
Gain on sales of noncurrent assets	75	48
Gain on sales of investment securities	318	351
Indemnity receipt from the erroneous stock order	―	12,822
Extraordinary loss	1,556	1,382
Loss on sales of noncurrent assets	―	8
Loss on disposal of noncurrent assets	373	114
Loss on sales of investment securities	19	2
Loss on impairment of investment securities	―	0
Loss on impairment of investments in subsidiaries and affiliates	―	133
Loss on impairment of golf club membership	0	0
Impairment losses	13	139
Head office transfer cost	852	498
Cost incurred in opening of joint branches	―	135
Provision of reserve for financial instruments transaction liabilities	297	348
Income before income taxes	47,564	62,741
Income taxes - current	3,306	1,292
Income taxes - deferred	5,030	16,578
Total income taxes	8,336	17,871
Net income	39,227	44,870