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Fiscal Year Ended March 31,2014

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The Daisan Bank, Ltd. and Consolidated Subsidiaries

Consolidated Financial Statements

Years ended March 31, 2014 and 2013

Contents

Message from the Chairman and President .......................................................................................1

Consolidated Balance Sheets.................................... ..............................................................................2

Consolidated Statements of lncome.....................................................................................................3

Directors, Corporate Auditors and Executive Officers..................................................................4

Bank Data ...................................................... .................................................................................................4

Bank Network ................................................... .............................................................................................4

1

We would like to express our deepest gratitude to all our partners on behalf of the Daisan

Bank, Ltd. and the Daisan Bank Group.

On this occasion, we are proud to announce the publication of our disclosure document,

the Daisan Bank Report 2014 for the period ending in March 2014, published in order to

help you further understand our operations. We hope you can peruse it at your leisure.

Last year, the economy of Mie Prefecture exhibited a great upsurge with the 62nd Shikinen

Sengu ceremony of the Ise Jingu Shrine, while this year has seen the “10th Year Anniversary

of Registration of the Kumano Kodo as a World Heritage Site” (the Kumano Kodo is a series

of ancient pilgrimage routes in the prefecture). It is hoped that the local economy of Kumano

City as well as Mie Prefecture will be revitalized by great numbers of persons visiting the

Kumano Kodo. We intend to strive to our utmost so that our bank, with its strong

connections to Kumano City in Mie Prefecture, can cooperate and collaborate with the local

populace and government in order to contribute even more to the local economy.

Our “First Medium Term Management Plan for the New Century” that we began in April

2012 has arrived at its final fiscal year. Now more than ever, the support and assistance of

our shareholders, clients and business partner, and the local residents is helping us in our

efforts to focus all of our capabilities on significant growth and advancement in order to

achieve our goal of being a “Community-based bank that grows together with its customers”

as we stated in our medium term management plan. We would like to sincerely ask for your

continued support and patronage.

Message from the Chairman and President

July 2014

Kenzo Tanikawa, Chairman

Hiroshi Iwama, President

Consolidated Balance Sheets THE DAISAN BANK, LTD.

March 31, 2014and 2013

(Thousands of (Thousands of

(Millions of yen) U.S dollars) (Millions of yen) U.S dollars)

ASEETS:\sknab morf eud dna hsaC 55,809 $ 542,256 \ 82,913 $ 805,606

Call loans and bills bought 40,000 388,651 9,000 87,446Trading securities 836 8,122 1,003 9,745Money held in trust 2,170 21,084 2,323 22,570Securities 584,075 5,675,038 588,429 5,717,343Loans and bills discounted 1,162,241 11,292,664 1,186,358 11,526,991Foreign exchange 2,027 19,694 1,713 16,643Other assets 17,770 172,658 18,396 178,740Tangible fixed assets 27,632 268,480 26,428 256,781 Buildings 6,306 61,270 5,924 57,559 Land 17,648 171,472 17,571 170,724 Lease assets 3 29 2 19 Construction in progress 229 2,225 2 19 Other tangible fixed assts 3,445 33,472 2,927 28,439Intangible fixed assets 3,882 37,718 4,624 44,928 Sofware 1,357 13,184 4,503 43,752 Software in progress 2,398 23,299 7 68 Lease assets 43 417 31 301 Other intangible fixed assets 82 796 82 796Deferred tax assets 3,830 37,213 3,679 35,746Customers' liabilities for acceptances and guarantees 2,495 24,242 2,313 22,473Reserve for possible loan losses (13,221) (128,458) (11,095) (107,802)

\stessa latoT \1,889,549 $ 18,359,395 \ \1,916,088 $ 18,617,256

LIABILITIES:\stisopeD 1,731,920 $ 16,827,827 \ 1,748,335 $ 16,987,320

Borrowed money 24,127 234,424 24,445 237,514Foreign exchange 14 136 34 330Bonds 5,300 51,496 4,800 46,638Bonds with subscription rights to shares - - 7,000 68,013Other liabilities 16,966 164,846 19,265 187,184Reserve for employees' bonuses 778 7,559 791 7,685Reserve for director's bonuses 9 87 9 87Reserve for employees' retirement benefits 4,001 38,874 - -Net defined benefit liability - - 4,645 45,132Reserve for director's retirement benefits 20 194 24 233Reserve for losses on dormant deposit repayments 161 1,564 243 2,361Reserve for contingent loss 368 3,575 336 3,264Deferred tax liability for land revaluation excess 3,287 31,937 3,212 31,208Acceptances and guarantees 2,495 24,242 2,313 22,473

\seitilibail latoT 1,789,452 $ 17,386,824 \ 1,815,460 $ 17,639,525NET ASSETS:

\kcots nommoC 37,461 $ 363,981 \ 37,461 $ 363,981Capital surplus 32,743 318,140 32,728 317,994Retained earnings 7,061 68,606 10,263 99,718Treasury stock (1,146) (11,134) (1,126) (10,940)Total shareholders' equity 76,118 739,584 79,326 770,753Unrealized gain on other securities 17,655 171,541 15,098 146,696Net defferred hedge losses ,net of taxes 48 466 1 9Land revaluation excess 3,533 34,327 3,393 32,967Remeasurements of defind benefit plans - - (452) (4,391)Total accumulated other comprehensive income 21,237 206,344 18,041 175,291Preemptive Right 30 291 58 563Minority interests 2,711 26,340 3,201 31,101Total net assets 100,097 972,570 100,628 977,730Total liabilities and net assets \ \1,889,549 $ 18,359,395 \ \1,916,088 $ 18,617,256

2013 2014

2

Consolidated Statements of Income THE DAISAN BANK, LTD.

Years ended March 31, 2014 and 2013

(Thousands of (Thousands of

U.S dollars) (Millions of yen) U.S dollars)

Ordinary income: \ 41,467 $ 402,905 \ 42,544 $ 413,369

Interest income 27,024 262,572 26,192 254,488

062,891504,02stnuocsid dna snaol no tseretnI 19,599 190,429 Interest and dividends on securities 6,542 63,563 6,505 63,204

96383 thguob sllib dna snaol llac no tseretnI 43 417912 sknab htiw stisoped no tseretnI 18 17404353emocni tseretni rehtO 26 252358,84820,5snoissimmoc dna seeF 5,467 53,118274,33544,3emocni yranidro rehtO 4,302 41,799689,75869,5emocni rehtO 6,580 63,93362131smialc ffo-nettirw fo seirevoceR 9 87068,75559,5emocni rehtO 6,571 63,845

Ordinary expenses: 37,675 366,061 35,657 346,453

Interest expenses 3,078 29,906 2,693 26,165

927,62157,2stisoped no tseretnI 2,377 23,095--00dlos sllib dna yenom llac no tseretnI

Interest on borrowings and rediscounts 183 1,778 172 1,671123,1631sdnob no tseretnI 137 1,331845sesnepxe tseretni rehtO 6 58503,81488,1stnemyap snoissimmoc dna seeF 2,047 19,889163,3643sesnepxe yranidro rehtO 412 4,003

General and administrative expenses 22,996 223,435 23,319 226,574140,19073,9sesnepxe rehtO 7,183 69,792

Provision of reserve for possible loan losses 3,481 33,822 2,400 23,319902,75888,5rehtO 4,783 46,472

Ordinary income 3,791 36,834 6,886 66,906Extraordinary income 19 184 16 155 Gain on disposal of fixed assets 19 184 16 155Extraordinary loss 30 291 155 1,506 Loss on disposal of fixed assets 23 223 22 213 Impairment loss on fixed assets 7 68 133 1,292Income before income taxes and minority interests 3,780 36,727 6,747 65,555Income taxes 775 7,530 507 4,926Income taxes for prior periods - - 209 2,030 Current 771 7,491 1,183 11,494 Deferred 1,547 15,031 1,899 18,451Income before minority interests 2,232 21,686 4,847 47,094Minority interest in income 236 2,293 353 3,429Net income 1,996 19,393 4,494 43,664

2013 2014

(Millions of yen)

3

4

Directors, Corporate Auditorsand Executive Officers (as of JUNE 30, 2014)

Kenzo Tanikawa Chairman and Representative DirectorHiroshi Iwama President and Representative Director, Executive officerMatsushi Ito Representative Exective Director, Executive OfficerYasuo Suzuki Managing Director, Executive OfficerAtsushi Iguchi Managing Director, Executive OfficerTakahiro Fujita Director, Executive OfficerHirokazu Satomura Director, Executive OfficerAkira Asano Director, Executive OfficerAkira Kitamura DirectorNobuyoshi Dobashi Director(Outside)Masami Hamaoka Corporate Auditor(Outside)Kunio Miura Corporate AuditorHiroshi Tabata Corporate Auditor(Outside)Noboru Nakagawa Corporate Auditor(Outside)Masamichi Yoshikawa Executive OfficerYasutaka Sakamoto Executive OfficerYasushi Satomura Executive OfficerKenichi Yamakawa Executive OfficerTomoyoshi Urakawa Executive OfficerKazuhiro Kawamura Executive OfficerHisao Shibata Executive Officer

Bank Data (as of March 31, 2014, non-consolidated) Bank Network

Name: THE DAISAN BANK, LTD. Head officeand branch

Location of Head Office: 510 KYO-MACHI, MATSUSAKA, MIE offices (*1)Mie 64

URL: http://www.daisanbank.co.jp 81ihciAGifu 2

TEL: 0598-23-1111 Osaka 6Nara 2

Network: Number of branches and offices: 98 Wakayama 5(64 within Mie prefecture :34 outside of Mie prefecture) Tokyo 1Number of housing loan plazas: 12 Total 98Number of ATM sites outside branches and offices: 118 *1 Excluding loan plazas

Number of Employees: 1,464

Paid-in Capital: \37,461 million

Total Assets: \1,905,800 million

Deposits: \1,753,200 million

Loans: \1,189,800 million

Return on Equity: 9.93%

Credit Rating: BBB+Rating and Investment Information, Inc(R&I)Japan Credit Rating Agency,Ltd.

THE DAISAN BANK, LTD. Securities and International Department 510 KYO-MACHI, MATSUSAKA, MIE, 515-8530 JAPAN TEL: 0598-25-0377 e-mail: kokusai@daisanbank.co.jp URL: http://www.daisanbank.co.jp Issued: August 2014