Shinsei Bank Reports Consolidated Financial Results for Nine Months Ended December 31, 2007

JCN Newswires, Jan 30, 2008

Tokyo, Japan, Jan 30, 2008 - (JCN Newswire) - Shinsei Bank, Limited, a leading diversified financial group, today announced net income of 33.5 billion yen on a consolidated basis for the first nine months of the fiscal year 2007, ended December 31, 2007, compared to net income of 47.1 billion yen reported in the first nine months of the fiscal year ended December 31, 2006. Consolidated cash basis* net income for the first nine months of the fiscal year 2007 was 42.0 billion yen, compared to 60.1 billion yen in the first nine months of the previous fiscal year.

"While Shinsei Bank's core business remained steady in the first nine months of fiscal year 2007, revenues were down slightly due mainly to mark-downs of our U.S. residential mortgages and an increase in net credit costs related to the same portfolio," said Thierry Porte, President and CEO of Shinsei Bank. "While the market outlook remains uncertain, we view these events as largely non-recurring and believe we have made the right choices to leverage opportunities going forward."

Highlights of Consolidated Third Quarter Financial Results

      (Billions of U.S. dollars**/JPY Billions except per share amounts)
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                       2007.4-12$US   2007.4-12   2006.4-12     Change%
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Revenue                       1.84       208.9       215.7       -3.2%
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General and Admin. Expenses   1.04       117.6       112.5        4.5%
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Expense-to-Revenue Ratio     56.3%       56.3%       52.1%          -
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Ordinary Business Profit      0.80        91.3       103.2      -11.6%
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Net Income                    0.29        33.5        47.1      -28.9%
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Cash Basis* Net Income        0.37        42.0        60.1      -30.1%
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Diluted Net Income
  Per Share ($US/JPY)         0.16       18.33       24.29      -24.9%
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Cash Basis* Diluted Net
  Income Per Share ($US/JPY)  0.20       22.97       30.98      -25.9%
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ROE (Annualized)              6.9%        6.9%        7.8%         --
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ROA (Annualized)              0.4%        0.4%        0.6%         --
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                        2007.12$US     2007.12      2007.3     Change%
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Total Assets                104.80    11,848.1    10,837.6        9.3%
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Diluted Equity Per
  Share ($US/JPY)             3.14      355.25      355.09        0.0%
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Total Capital Adequacy Ratio 12.10%     12.10%      13.13%         --
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Tier I Capital Ratio          7.45%      7.45%       8.11%         --
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Non-Performing Loan Ratio***  0.71%      0.71%       0.53%         --
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* Cash basis figures are calculated by excluding amortization (and
impairment) of goodwill and intangible assets, net of tax benefit.
** U.S. dollar amounts have been calculated at JPY 113.05 to $1.00,
which was the approximate exchange rate at December 31, 2007.
*** Non-performing loan ratio under the Financial Revitalization Law
on a non-consolidated basis.
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Balance Sheet: Continued growth while maintaining capital strength

Shinsei Bank's total assets increased from 10,837.6 billion yen at March 31, 2007, to 11,848.1 billion yen at December 31, 2007. The higher balance was due to an increase in call loans, loans and bills discounted and securities. Call loans increased from 43.1 billion yen at March 31, 2007, to 544.7 billion yen at December 31, 2007. Loans and bills discounted increased from 5,146.3 billion yen on March 31, 2007, to 5,503.6 billion yen as of December 31, 2007, due in part to growth in housing loans. The balance of securities as of December 31, 2007 amounted to 2,047.8 billion yen as compared to 1,854.6 billion yen as of March 31, 2007. The increase, in part, relates to investment in foreign bonds to diversify the portfolio.

Total deposits and negotiable certificates of deposit increased 777.4 billion yen or 14.3% to 6,198.3 billion yen, compared to March 31, 2007. Shinsei Bank has been diversifying its funding sources through deposits from retail and institutional customers. The retail and institutional deposit balances stood at 3,826.6 billion yen and 2,371.7 billion yen, respectively, at December 31, 2007.