FINANCIAL REPORT 2021

Contents

Message from the Management

2

Operating Results

3

Cash Flows

4

Consolidated Financial Statements

5

Directors and Audit & Supervisory Board Members

11

Status of Principal Shareholders

11Bank Data

11

Bank Network

111

Message from the Management
We would like to thank you for your ongoing support of the Chukyo Bank.
This disclosure report presents the settlement of accounts for the fiscal year ended March 31,
2021. We hope that reading this report will help you gain a deeper understanding of the Bank.
During the last fiscal year, the Japanese economy rapidly deteriorated due to the effects of thenovel coronavirus disease (COVID-19) from the beginning of the fiscal year, and the situation became
extremely severe. Although consumer spending and non-manufacturing industries continued to be
weak due to the effects of restraint in going out, the economy began to pick up in the second half ofthe fiscal year, mainly in exports and production, due to the effects of various policies and therecovery of overseas economies.
Under such circumstances, in Aichi Prefecture, which is the Bank’s main business area, although
the economy is expected to pick up due to the effects of various policies and improvements in overseas
economies, the Bank recognizes that there are downside risks to the economy, such as the impact oftrends in COVID-19 on the domestic and overseas economies and fluctuations in financial and capital
markets. In addition, in the medium to long term, the business environment surrounding the Bank
will have to adapt to rapid changes in the business environment, such as a shrinking domestic market
due to a declining population, new competition due to digitalization accelerated by the COVID-19
pandemic, growing diversified needs of customers according to their life stages, and declining
profitability of profit on deposits and loans, and interest and dividends on securities, and we therefore
recognize the need for a drastic change in our business model in order to be able to respond to these
rapid changes in the environment.
Under such a severe business environment, we have decided that it is necessary to make drasticchanges and improve the soundness of our management now that we have secured profits and havemanagement strength, and have launched the 18th Medium-Term Management Plan “CX Plan” in
April 2021. Under the CX Plan, in order to contribute to the growth of the local community, we will
dramatically enhance our function to provide comprehensive and timely consulting services tailoredto the life stages of our customers, to complement our financial intermediary functions, aiming toachieve our theme of “becoming a consulting company that contributes to the community withfinancial functions.”
In order to meet the diverse needs of our customers and to realize our management vision of
becoming “the bank people want to talk to most,” all executives and employees of the Bank will makeconcerted efforts to achieve this goal. We thus look forward to your continued support and patronage.
September 2021
Hideo Kobayashi, President

2Operating Results
Based on the 17th Medium-Term Management Plan launched in April 2018, the Bank has been
implementing various measures and making efforts to provide financial and management support
mainly to customers operating businesses affected by the spread of COVID-19.
For customers operating businesses, in addition to providing management consultations such as
cash management, we have started to offer subordinated capital loans to help customers improve theircapital that has been damaged due to temporary deterioration in business performance caused by rapidchanges in the business environment. In addition, in order to help our customers resolve their
management issues, we launched the management support platform “Chukyo Big Advance” and havebeen making efforts to support our customers’ core business and enhance their business value by not
only providing financial support, but also expanding sales channels, improving welfare programs, aswell as providing useful information for management.
For individual customers, the Bank took steps to improve customer convenience, including thelaunch of Chukyo Toushin Direct, a service that allows customers to trade investment trusts via theInternet. The Bank also worked to provide solutions to various needs by developing various
campaigns such as the “Asset Management Campaign” to promote stable asset formation, as well as
beginning to offer the “My Design” reverse mortgage loan to meet the needs of senior citizens whowant to enhance their second life while continuing to live in their own homes.
As a result, the operating results for the Bank and its consolidated subsidiaries were as follows.
The balance of deposits (including negotiable certificates of deposit) stood at 1,896.7 billion yen
as of the end of the fiscal year, an increase of 121.6 billion yen during the fiscal year. This increase
mainly reflects moves by business customers to secure cash reserves to prepare for the impact of
COVID-19 on their businesses.
Loans and bills discounted totaled 1,535.8 billion yen as of the end of the fiscal year, an increaseof 172.1 billion yen during the fiscal year. This increase mainly reflects the Bank’s proactive efforts
to provide financial support to medium- and small-sized businesses affected by COVID-19.
The balance of securities at the end of the fiscal year stood at 430.7 billion yen, a decrease of 63.2
billion yen year on year mainly due to redemption of domestic bonds.
In terms of income, interest income decreased by 771 million yen year on year to 18,876 million
yen mainly due to a decrease in interest and dividends on securities, despite an increase in interest on
loans due to an increase in loans, mostly directed at medium- and small-sized businesses. Fees andcommissions increased by 392 million yen year on year to 5,399 million yen mainly due to an increasein corporate-related fees and commissions as a result of proactive proposals for management support
to businesses. Other ordinary income increased by 706 million yen year on year to 3,598 million yen
mainly due to an increase in gain on sale of bonds. Other income increased by 194 million yen year
on year to 3,571 million yen mainly due to an increase in gain on sale of equity securities. Primarily
as a consequence of the aforementioned, total income increased by 824 million yen year on year to
31,754 million yen.

3

As for expenses, financing expenses decreased by 347 million yen year on year to 996 million
yen mainly due to a decrease in foreign currency funding costs as a result of restrained investment inforeign currency-denominated bonds. Fees and commissions decreased by 12 million yen year on
year to 2,022 million yen. Other ordinary expenses decreased by 273 million yen year on year to2,958 million yen mainly due to a decrease in loss on sale of bonds. General and administrative
expenses decreased by 179 million yen year on year to 17,690 million yen mainly as a result of adecrease in property expenses due to a decrease in system-related depreciation and amortization.
Other expenses increased by 1,191 million yen year on year to 4,145 million yen mainly as a resultof an increase in provision of reserve for possible loan losses. Primarily as a consequence of theaforementioned, total expenses increased by 520 million yen year on year to 28,020 million yen.
As a result, profit attributable to owners of the parent increased 17 million yen, or up by 0.7%
year on year to 2,333 million yen.

Cash Flows
Cash flows for the fiscal year ended March 31, 2021 were as follows. Net cash used in operating
activities totaled 71,880 million yen, mainly due to net increase in loans and bills discounted. Net
cash provided by investing activities totaled 91,616 million yen, mainly due to proceeds from salesof securities and proceeds from maturities of securities. Net cash used in financing activities totaled
1,303 million yen, mainly reflecting dividends paid.
As a result of the above, cash and cash equivalents at the fiscal year-end totaled 91,124 million
yen, an increase of 18,432 million yen during the fiscal year ended March 31, 2021.

4

Consolidated Financial Statements
THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMARCH 31, 2021 AND 2020
Thousands of
U.S. Dollars
2021

Millions of Yen
2021
2020
ASSETS:Cash and due from banks
Securities
Loans and bills discounted
Foreign exchange
Other assets
Premises and equipment
Intangible assets
Retirement benefit asset
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Reserve for possible loan losses
Total assets¥

LIABILITIES:
Deposits
Payables under securities lending transactions
Borrowed money
Foreign exchange
Subordinated bonds
Other liabilities
Retirement benefit liability
Reserve for reimbursement of dormant deposits
Reserve for contingencies
Deferred tax liabilities
Deferred tax liabilities for land revaluation surplus
Acceptances and guarantees
Total liabilities

EQUITY:
Capital stock:
Common stock –authorized, 50,000 thousand shares;
issued, 21,745 thousand shares in 2021 and 2020
Capital surplus
Retained earnings
Treasury stock, at cost –30 thousand shares in 2021 and65 thousand shares in 2020
Accumulated other comprehensive income:Net unrealized gain on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Land revaluation surplus
Remeasurements of defined benefit plans
Total
Share acquisition rights
Total equity
Total liabilities and equity

5

92,026
430,763
1,535,869
15,931
15,28818,419
1,814
2,943
387
2,813
(9,255)
2,107,003¥

73,839494,005
1,363,747
10,58916,76218,804
1,918
552
688
3,460
(8,038)
1,976,330$

831,234
3,890,913
13,872,902
143,898
138,090
166,371
16,385
26,582
3,495
25,408(83,596)
19,031,731

1,896,745
56,30022
5,000
28,259
149
149
492
3,842
2,537
2,813
1,996,311

1,775,100
30,41137,00099
5,000
22,017
203
389
509
118
2,547
3,460
1,876,857

17,132,553
508,535
198
45,163
255,252
1,345
1,345
4,444
34,703
22,91525,40818,031,894

31,84423,99435,211

31,84423,99433,817

287,634
216,728
318,047

(78)

(169)

(704)

14,393
(650)
5,407
269
110,392299
110,691¥ 2,107,003

6,011
(725)
5,357
(953)
99,177295
99,472¥ 1,976,330

130,006(5,871)
48,8392,429
997,127
2,700
999,828$19,031,731

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEYEARS ENDED MARCH 31, 2021 AND 2020
Millions of Yen
2021
2020
INCOME:Interest income:Interest on loans and discounts
Interest and dividends on securities
Other interest income
Fees and commissions
Other ordinary income
Gain on sales and disposal of premises and equipment
Gain on liquidation of subsidiaries and associates
Recoveries of written-off receivables
Other income¥

Total income

13,344
5,427
104
5,399
3,598
62
245
0
3,570

¥

12,455
7,040
153
5,007
2,892
4
1
3,374

Thousands of
U.S. Dollars
2021$

120,53149,019939
48,76732,499560
2,212
032,24631,75430,929286,821

237
56
702
2,022
2,958
17,690
2,678
20
185
1,466

244
56
1,042
2,034
3,232
17,870
1,548
19
45
1,405

2,140
505
6,340
18,263
26,718
159,786
24,189180
1,671
13,241

Total expenses

28,02027,500253,093

PROFIT BEFORE INCOME TAXES

3,733

3,429

33,718

INCOME TAXES:
Current
Deferred
Total income taxes

1,529
(129)
1,399

853
259
1,112

13,810(1,165)
12,636

PROFIT

2,333

2,316

21,073

EXPENSES:Interest expenses:
Interest on deposits
Interest on bonds
Other interest expenses
Fees and commissions
Other ordinary expenses
General and administrative expenses
Provision of reserve for possible loan losses
Loss on sales and disposal of premises and equipment
Impairment loss on long-lived assets
Other expenses

PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT

¥

2,333

PER SHARE OF COMMON STOCK:
Basic earnings
Cash dividends applicable to the year¥

107.51
40.00

¥

2,316

$

¥

106.74
40.00

U.S. Dollars
$
0.97
0.36

Yen

6

21,073

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEYEARS ENDED MARCH 31, 2021 AND 2020
Millions of Yen
2021
2020
PROFIT
OTHER COMPREHENSIVE INCOME:
Net unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on derivatives under hedge accounting
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted forusing equity method
Total other comprehensive income¥

COMPREHENSIVE INCOME¥

12,013¥(12,990)$108,508

COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent¥

12,013¥(12,990)$108,508

7

2,333

¥

2,316

Thousands of
U.S. Dollars
2021$

21,073

8,381
74
1,223

(14,181)
(401)
(705)

75,702668
11,0469,679(18)(15,306)

87,426

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITYYEARS ENDED MARCH 31, 2021 AND 2020

Thousands

BALANCE AT APRIL 1, 2019
Profit attributable to owners of theparentCash dividends, ¥40.00 per share
Purchases of treasury stock
Disposal of treasury stockReversal of land revaluation surplus
Net changes of items other thanshareholders’ equity
BALANCE AT MARCH 31, 2020
Profit attributable to owners of theparentCash dividends, ¥40.00 per share
Purchases of treasury stock
Disposal of treasury stockReversal of land revaluation surplus
Net changes of items other thanshareholders’ equity
BALANCE AT MARCH 31, 2021

BALANCE AT MARCH 31, 2020
Profit attributable to owners of theparentCash dividends, $0.36 per share
Purchases of treasury stock
Disposal of treasury stockReversal of land revaluation surplus
Net changes of items other thanshareholders’ equity
BALANCE AT MARCH 31, 2021

Millions of Yen
Accumulated Other Comprehensive Income

Outstanding
Number of
Shares ofCommonStockCommonStockCapitalSurplusRetained
Earnings

TreasuryStock21,697¥ 31,844¥ 23,994¥ 32,366

¥

(27)
10
-

-

-

21,68031,844(1)
36
21,715

Net Unrealized
Gain onAvailable-for-sale
Securities

Deferred Losson Derivatives
under Hedge
Accounting¥¥¥ 20,211

2,316
(868)
(7)
9

(61)
31
-

-

-

-

-

23,99433,817(169)(14,199)
6,011

(401)
(725)

(9)
5,357

-

-

2,333
(867)
(21)
(49)

(3)
94
-

-

-

-

¥ 31,844¥ 23,994¥ 35,211

(78)

8,381
¥ 14,393

CommonStockCapitalSurplusRetained
Earnings

TreasuryStock$ 287,634$ 216,728$ 305,455$--

21,073(7,831)
(189)
(442)

$ 287,634$ 216,728$ 318,047

$

¥

(323)

Remeasurements ofDefinedBenefit Plans

(139)

¥

¥

Land
Revaluation
Surplus

74
(650)

¥

5,367

49
5,407

Thousands of U.S. Dollars
Accumulated Other Comprehensive Income
Net Unrealized
Deferred Loss
Gain onon Derivatives
Land
Available-for-sale
under Hedge
Revaluation
Securities
Accounting
Surplus(1,526)$ 54,295$ (6,548)$ 48,387

(27)
849
-

-

-

-

(704)

75,702$ 130,006

668$ (5,871)

442$ 48,839

8

¥

(248)

2,316
(868)
(61)
23
9

-

2,316
(868)
(61)
23
9

(705)
(953)

(15,316)
99,17752
295(15,263)
99,472

-

2,333
(867)
(3)
73
(49)

-

2,333
(867)
(3)
73
(49)

¥

(8,608)$$¥¥ 113,316

Remeasurements ofDefinedBenefit Plans$

113,073

Total
Equity

242

1,223
269

¥

Total

Share
Acquisition
Rights

11,046
2,429

9,729
110,392

¥

Total

Share
Acquisition
Rights895,826$

21,073(7,831)
(27)
659
(442)
$

87,878997,127

3
299

2,664

¥

Total
Equity
$

$

27
2,700

9,733
110,691

898,491
21,073(7,831)
(27)
659
(442)

$

87,914
999,828

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED MARCH 31, 2021 AND 2020
Millions of Yen
2021
2020
OPERATING ACTIVITIES:Profit before income taxes
Adjustments for:
Income tax paid
Depreciation and amortization
Impairment loss on long-lived assets
Gain on liquidation of subsidiaries and associates
Share of loss (profit) of entities accounted for using equity method
Net gain on sales and redemption of securities
Net foreign exchange (gain) loss
Net (gain) loss on sales and disposal of premises and equipment
Changes in assets and liabilities:
Net increase in loans and bills discounted
Net increase in deposits
Net increase in borrowed money (excluding subordinated borrowings ofthe Bank)
Net decrease (increase) in due from banks (excluding due from the Bankof Japan)
Net (decrease) increase in payables under securities lending transactions
Net increase in foreign exchange, assets
Net (decrease) increase in foreign exchange, liabilities
Net increase in reserve for possible loan losses
Net increase in asset for retirement benefit asset
Net increase in liability for retirement benefit liability
Net increase in interest receivable
Net (decrease) increase in interest payable
Net decrease in other assets
Net (decrease) increase in other liabilities
Total adjustments¥

Net cash used in by operating activities¥

FORWARD

3,733

¥

3,429

Thousands of
U.S. Dollars
2021$

33,718(1,079)
1,412
185
(245)
113
(3,399)
(429)
(37)

(350)
1,620
45
(51)
(2,189)1,073
14(9,746)
12,754
1,671(2,212)
1,020(30,701)(3,874)(334)(172,122)
121,645(52,204)
3,664(1,554,710)
1,098,771

19,3001,884

174,329

246(30,411)(5,341)
(77)
1,216
(734)
52
(5,519)(4)
1,104(1,488)(75,614)(437)
30,411(3,829)
92
711
(889)
88
(6,828)
73
318
2,281
(24,499)2,222(274,690)(48,243)(695)
10,983(6,629)469(49,850)(36)
9,971(13,440)(682,991)(71,880)(21,070)(649,263)(71,880)¥(21,070)$(649,263)(Continued)

9

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED MARCH 31, 2021 AND 2020
Millions of Yen
2021
2020
FORWARD¥(71,880)¥(21,070)

Thousands of
U.S. Dollars
2021$(649,263)

INVESTING ACTIVITIES:
Purchases of securities
Proceeds from sales of securities
Proceeds from maturities of securities
Proceeds from liquidation of subsidiaries and associates
Dividends and interest received from investing activities
Purchases of premises and equipment
Proceeds from sales of premises and equipment
Purchases of intangible assets
Net cash provided by investing activities(78,290)
81,854
82,342
1,746
5,159
(550)
155
(801)
91,616(125,639)
73,09955,981
6,646
(318)
51
(943)
8,876

(707,162)
739,355
743,762
15,77046,599(4,967)1,400(7,235)827,531

FINANCING ACTIVITIES:Payments as financing activities
Dividends paid
Purchases of treasury stock
Proceeds from sales of treasury stock
Repayments of lease obligations
Net cash used in financing activities

(56)
(867)
(3)
73
(448)
(1,303)

(56)
(868)
(61)
23
(751)
(1,713)(505)(7,831)(27)659(4,046)(11,769)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH
AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR

018,432
72,691
91,124(46)(13,953)
86,644
72,691

0
166,489
656,589¥¥$

823,087

Basis of presentation
These financial statements without footnotes have been compiled from the consolidated financial statements prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Act and its related accounting regulations and the Ordinance for Enforcement of the Banking Act, and in conformity withaccounting principles generally accepted in Japan. Certain reclassifications and rearrangements have been made to the consolidated financial statements issued domesticallyin order to present them in a form which is more familiar to readers outside Japan.
U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥110.71 to $1, the approximate rate of exchange at
March 31, 2021. Amounts less than one million yen and amounts less than one thousand dollars are omitted. As a result, totals shown in the accompanying financial statements
without footnotes do not necessarily agree with the sum of the individual amounts.

10Directors and Audit & Supervisory Board Members
Shigenobu Tokuoka
Hideo Kobayashi
Noriaki Kojima
Toshiyuki Wakao
Hiroshi Kawai
Junko Hiratsuka
Yuki Shibata
Hiroyuki Noguchi
Akihiro Maeda
Kazuhiko Kimura
Yoshiko Kurimoto

Status of Principal Shareholders(as of March 31, 2021)

Name

Address

MUFG Bank, Ltd.
Misono Service Co., Ltd.
Custody Bank of Japan, Ltd. (trust a/c 4)
Custody Bank of Japan, Ltd. (trust a/c)
KT CAPITAL CORPORATIONThe Master Trust Bank of Japan, Ltd. (trust a/c)
The Chukyo Bank Employees Shareholding
Association
Daido Life Insurance Company(Standing proxy: Custody Bank of Japan, Ltd.)
Daiwa Can Company
Chukyo TV. Broadcasting Co., Ltd.
Note

(as of June 30, 2021)

ChairmanPresident
Director and Senior Managing Executive
Officer
Director and Managing Executive Officer
Director and Executive Officer
Director and Executive Officer
Director (Outside)
Director (Outside)
Audit & Supervisory Board Member
Audit & Supervisory Board Member (Outside)
Audit & Supervisory Board Member (Outside)

7-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo
15-56, Heian 2-Chome, Kita-ku, Nagoya-City,
Aichi
8-12, Harumi 1-Chome, Chuo-ku, Tokyo
8-12, Harumi 1-Chome, Chuo-ku, Tokyo
17-2, Marunouchi 1-Chome, Naka-ku, NagoyaCity, Aichi
11-3, Hamamatsu-cho 2-Chome, Minato-ku,
Tokyo
33-13, Sakae 3-Chome, Naka-ku, Nagoya-City,
Aichi
2-1, Edobori 1-Chome, Nishi-ku, Osaka-City, Osaka(8-12, Harumi 1-Chome, Chuo-ku, Tokyo)
7-2, Marunouchi 2-Chome, Chiyoda-ku, Tokyo
60-11, Hiraike-cho 4-Chome, Nakamura-ku,
Nagoya-City, Aichi

Number ofshares held
(thousand)

Percentageof shareownership(%) (Note)

8,534

39.30

1,822

8.39

990

4.56

610

2.80

610

2.80

483

2.22

478

2.20

329

1.51

296

1.36

263

1.21

Total
14,416
66.39
The figures presented for percentage of share ownership show the percentage of the total number of shares issued (excluding treasury stock).

Bank Data

Bank Network(as of March 31, 2021, non-consolidated)(as of June 30, 2021)
Head Office andbranches and sub-branches

Name:

The Chukyo Bank, Limited

Location of Head Office:33-13, Sakae 3-Chome, Naka-ku,
Nagoya-City, Aichi

Nagoya-shi

39

Date of Establishment:

February 10, 1943

Aichi

27

Capital Stock:

31.844 billion yen

Mie

15

Shizuoka

1

Nara

2

Osaka

1

Tokyo

1

Internet branch

1

Total

87

Number of ATMs

195

Deposits:

1,902.7 billion yen*Including negotiable certificates of deposit

Loans and Bills Discounted:

1,535.5 billion yen

Number of Employees:

1,10911