FINANCIAL REPORT 2022

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,
2022. We hope that reading this report will help you gain a deeper understanding of the Bank.
During the last fiscal year, although the Japanese economy continued to pick up, the impact of
the novel coronavirus disease (COVID-19) resulted in severe conditions in some non-manufacturingindustries. As economic and social activity began to normalize, various policies and improvements inoverseas economies contributed to a pickup, mainly in capital investment and production, but
consumer spending and the non-manufacturing industries remained weak. While there were signs ofa pickup throughout the year, the trend slowed to a halt as exports and production stalled.
Under such circumstances, in the 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 improvementsin overseas economies, the Bank recognizes that there are downside risks, such as rising resource
prices, fluctuations in financial and capital markets, and supply-side constraints amid uncertainty due
to such factors as the situation in the Ukraine.
Additionally, in the medium to long term, the Bank recognizes the need for a drastic change inour business model in order to be able to respond to rapid changes in the environment, such as ashrinking 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 theirlife stages, and declining profitability of profit on deposits and loans, and interest and dividends on
securities.
Under such a severe business environment, we have started the 18th Medium-Term Management
Plan “CX Plan” in April 2021. Under the CX Plan, for the purpose of contributing to the growth ofthe local community, we are finding practical implementations for various measures to transition to acompany that provides comprehensive consulting services tailored to the life stages of our customers
in a timely fashion that complements our financial intermediary functions to achieve our theme of“becoming a consulting company that contributes to the community with financial functions.”
As for our business integration with The Aichi Bank, Ltd., assuming the approval at the general
meeting of shareholders and approval from the relevant authorities, on October 3, 2022, “Aichi
Financial Group Co, Inc.” will be established to become the wholly owning parent company of bothbanks by way of joint share transfer.
Aichi Financial Group will be able to leverage an expanded market share and the potential toadditionally invest resources because of the business integration, and respond to changes in the
management environment through having an expanded stabilized sales base and improved
profitability. In addition, we will enhance corporate value and respond to stakeholder expectations by
developing a sustainable business model for the future.
Going forward, 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 make concerted efforts to achieve this goal. We thus look forward to your continued support andpatronage.
September 2022
Hideo Kobayashi, President

2Operating Results
Under the 18th Medium-Term Management Plan “CX Plan,” for the purpose of contributing to
the growth of the local community, we are pursuing various measures to transition to a company thatprovides comprehensive consulting services tailored to the life stages of our customers in a timely
fashion that complements our financial intermediary functions to “become a consulting company that
contributes to the community with financial functions.”
For customers operating businesses, in addition to providing financial support due to the effect of
the spread of COVID-19, by regularly performing customer surveys to hear their views, we provided
support on a companion-based model through consulting functions such as activities to offer solutions
to the various management issues faced by customers and worked to contribute to the revitalizationof the regional economy and the solving of social issues. Moreover, as a result of enhancing oursolution menu that accompanies quality and volume, focusing on business succession and securing
human resources, the number of solutions on the solution menu at the end of the fiscal year was 157
solutions, and we worked to assist in the main business of customers and offer support for improving
business value.
For individual customers, the Bank took steps to support the asset formation of customers throughsuch measures as starting to offer the Chukyo Omakase Navi, which is a hybridized investment
discretionary service that fuses face-to-face and online customer experience. In addition, with theobjective of enhancing non-face-to-face channels, the Bank has responded to the various needs ofcustomers through such measures as “WEB Account Opening,” an online inquiry service designed
for smartphones, and the start of bank account linking with “Bank Pay,” a smartphone payment
service.
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 1,860.1 billion yen
as of the end of the fiscal year, a decrease of 36.6 billion yen during the fiscal year. This decrease
mainly reflects declining convenience for some customers as a result of relocating a total of 22
branches under a branch-in-branch system where multiple branches share a single location.
Loans and bills discounted totaled 1,549.4 billion yen as of the end of the fiscal year, an increaseof 13.5 billion yen during the fiscal year. This increase mainly reflects the Bank’s efforts to provide
financial support to corporate customers affected by the changing situation in Japan and overseas andrising resource prices in addition to the Bank’s proactive response to the demand for funds by
individual customers, mainly for housing loans.
The balance of securities at the end of the fiscal year stood at 405.2 billion yen, a decrease of 25.5
billion yen year on year mainly due to a decrease in domestic bonds, equity securities, etc.
In terms of income, interest income increased by 208 million yen year on year to 19,085 million
yen mainly due to an increase in interest on loans as a result of an increase in loans to corporate
customers as well as individual customers, and an increase in interest on deposits with banks, despitea decrease in interest and dividends on securities. Fees and commissions increased by 585 million
yen year on year to 5,985 million yen mainly due to an increase in corporate-related fees andcommissions as a result of proactive proposals for management support to businesses. Other ordinary
income decreased by 2,182 million yen year on year to 1,415 million yen mainly due to a decrease ingain on sale of bonds. Other income increased by 1,470 million yen year on year to 5,042 million yen
mainly due to an increase in gain on sale of equity securities. Primarily as a consequence of theaforementioned, total income increased by 359 million yen year on year to 32,113 million yen.
3

As for expenses, financing expenses decreased by 174 million yen year on year to 821 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 29 million yen year on
year to 1,993 million yen. Other ordinary expenses decreased by 1,554 million yen year on year to
1,404 million yen mainly due to a decrease in loss on sale of bonds. General and administrative
expenses decreased by 665 million yen year on year to 17,025 million yen mainly due to decreases
in personnel expenses and property expenses. Other expenses increased by 71 million yen year on
year to 4,216 million yen. Primarily as a consequence of the aforementioned, total expenses decreased
by 416 million yen year on year to 27,603 million yen.
As a result, profit attributable to owners of the parent increased 1,394 million yen, or up by 59.7%
year on year to 3,728 million yen.

Cash Flows
Cash flows for the fiscal year ended March 31, 2022 were as follows. Net cash provided byoperating activities totaled 239,315 million yen, mainly due an increase in borrowed money as a resultof financial procurement from the Bank of Japan for financial operations in response to the spread of
COVID-19. Net cash provided by investing activities totaled 20,542 million yen, mainly due toproceeds from sales of securities and proceeds from maturities of securities. Net cash used infinancing activities totaled 1,179 million yen, mainly reflecting dividends paid.
As a result of the above, cash and cash equivalents at the fiscal year-end totaled 349,803 million
yen, an increase of 258,679 million yen during the fiscal year ended March 31, 2022.

4

Consolidated Financial Statements
THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSMARCH 31, 2022 AND 2021

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

Millions of Yen
2022
2021

Thousands of
U.S. Dollars
2022

350,633
405,263
1,549,464
6,589
21,757
17,802
1,724
3,251
341
2,462
(11,093)
2,348,196

92,026
430,763
1,535,869
15,931
15,28818,419
1,814
2,943
387
2,813
(9,255)
2,107,003$ 2,864,882
3,311,242
12,660,053
53,836
177,767
145,453
14,086
26,562
2,786
20,116(90,636)
19,186,175

1,860,106
45,000
9,001
291,500
57
5,000
22,908
122
562
1,030
2,298
2,462
2,240,049

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

15,198,186
367,677
73,5432,381,730
465
40,853
187,172
996
4,591
8,415
18,776
20,11618,302,549

31,87931,844

260,470

24,02938,551

23,99435,211

196,331314,984

(11)

(78)

(89)

8,110
472
4,864
18
107,915
230
108,146¥ 2,348,196

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

66,263
3,856
39,741
147
881,730
1,879
883,617$19,186,175¥

LIABILITIES:
Deposits
Call money and bills soldPayables 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, 21,780 thousand shares in 2022 and21,745 thousand shares in 2021
Capital surplus
Retained earnings
Treasury stock, at cost –5 thousand shares in 2022 and30 thousand shares in 2021
Accumulated other comprehensive income:Net unrealized gain on available-for-sale securities
Deferred gain (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¥THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOMEYEARS ENDED MARCH 31, 2022 AND 2021
Millions of Yen
2022
2021
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

13,459
5,231
394
5,985
1,415
584
1
5,041

¥

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

Thousands of
U.S. Dollars
2022$

109,968
42,7403,219
48,901
11,5614,771
841,18832,11331,754

262,382

158
56
606
1,993
1,404
17,025
2,475
13
1,250
2,617

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

1,290
457
4,951
16,284
11,471
139,104
20,222
106
10,213
21,382

Total expenses

27,60328,020225,533

PROFIT BEFORE INCOME TAXES

4,509

3,733

36,841

INCOME TAXES:
Current
Deferred
Total income taxes

1,506
(725)
781

1,529
(129)
1,399

12,304(5,923)
6,381

PROFIT

3,728

2,333

30,460EXPENSES: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

¥

3,728

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

171.30
55.00

¥

2,333

$

¥

107.51
40.00

U.S. Dollars
$
1.39
0.44

Yen

6

30,460THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEYEARS ENDED MARCH 31, 2022 AND 2021
Millions of Yen
2022
2021
3,728

¥

PROFIT
OTHER COMPREHENSIVE INCOME:
Net unrealized (loss) gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Remeasurements of defined benefit plans
Total other comprehensive income¥

COMPREHENSIVE INCOME¥(1,682)¥

12,013$(13,742)COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent¥(1,682)¥

12,013$(13,742)(6,282)
1,123(250)(5,410)7

2,333

Thousands of
U.S. Dollars
2022
$

8,381
74
1,223
9,679

30,460(51,327)
9,175(2,042)(44,202)

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITYYEARS ENDED MARCH 31, 2022 AND 2021

Thousands

BALANCE AT APRIL 1, 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 in items other thanshareholders’ equity
BALANCE AT MARCH 31, 2021
Cumulative effects of changes inaccounting policies
Restated balance
Issuance of new shares
Profit attributable to owners of theparentCash dividends, ¥55.00 per share
Purchases of treasury stock
Disposal of treasury stockReversal of land revaluation surplus
Net changes in items other thanshareholders’ equity
BALANCE AT MARCH 31, 2022

BALANCE AT MARCH 31, 2021
Cumulative effects of changes inaccounting policies
Restated balance
Issuance of new shares
Profit attributable to owners of theparentCash dividends, $0.44 per share
Purchases of treasury stock
Disposal of treasury stockReversal of land revaluation surplus
Net changes in items other thanshareholders’ equity
BALANCE AT MARCH 31, 2022

Millions of Yen
Accumulated Other Comprehensive Income
Deferred (Loss)
Net Unrealized
Gain onGain onDerivatives
Land
Available-for-sale
under Hedge
Revaluation
Securities
Accounting
Surplus

Outstanding
Number of
Shares ofCommonStockCommonStockCapitalSurplusRetained
Earnings

Treasury
Stock21,680¥ 31,844¥ 23,994¥ 33,817

¥

(1)
36
-

-

-

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

(3)
94
-

-

-

-

-

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

-

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

21,71531,84423,99435,211(78)

8,381
14,393

74
(650)

49
5,407

1,223
269

9,729
110,392

3
299

9,733
110,691

34

31,84435

23,99435(48)
35,163-(78)-

14,393
-

(650)
-

5,407
-

269
-

(48)
110,344
70

299

(1)
26
-

-

-

3,728
(869)
(13)
542

(2)
68
-

-

-

-

-

3,728
(869)
(2)
54
542

21,774¥ 31,879¥ 24,029¥ 38,551

¥

(169)

(11)

CommonStockCapitalSurplusRetained
Earnings

TreasuryStock$ 260,184$ 196,045$ 287,695$

260,184285

196,045285$ 260,470

¥

¥

6,011

¥

(6,282)
8,110

¥

(725)

1,123
472

¥

¥

5,357

(542)
4,864

Thousands of U.S. Dollars
Accumulated Other Comprehensive Income
Deferred (Loss)
Net Unrealized
Gain onGain onDerivatives
Land
Available-for-sale
under Hedge
Revaluation
Securities
Accounting
SurplusRemeasurements ofDefinedBenefit Plans
¥

¥

(953)

(250)
18

Total
¥

¥

Remeasurements ofDefinedBenefit Plans¥-(5,952)
107,915

¥

Total

Share
Acquisition
Rights901,969$

99,472-(48)
110,643
70

-

3,728
(869)
(2)
54
542

(68)
230

(6,021)
108,146

Total
Equity$ 44,178(392)
287,302-(637)-

117,599-(5,310)-44,178
-

2,197
-

(392)
901,576
571

2,443
-

(392)
904,019571-

30,460(7,100)
(106)
4,428

(16)
555
-

-

-

-

-

30,460(7,100)
(16)
441
4,428

-

30,460(7,100)
(16)
441
4,428

$ 196,331$ 314,984(89)(51,327)$ 66,263

9,175
3,856

(4,428)$ 39,741

8(2,042)
147$(48,631)881,730

$

2,443

¥

$ (5,310)

$

$

295

$ 117,599

$

2,197

¥

Total
Equity

(637)

$

$

99,177

Share
Acquisition
Rights

(555)
1,879

$

$

904,412(49,195)
883,617

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED MARCH 31, 2022 AND 2021
Millions of Yen
2022
2021
OPERATING ACTIVITIES:Profit before income taxes
Adjustments for:
Income taxes paid
Extra retirement payments
Depreciation and amortization
Impairment loss on long-lived assets
Gain on liquidation of subsidiaries and associates
Other extraordinary loss
Share of loss of entities accounted for using equity method
Net gain on sales and redemption of securities
Net foreign exchange gain
Net gain on sales and disposal of premises and equipment
Changes in assets and liabilities:
Net increase in loans and bills discounted
Net (decrease) increase in deposits
Net increase in borrowed money (excluding subordinated borrowings ofthe Bank)
Net decrease in due from banks (excluding due from the Bank of Japan)
Net increase in call money
Net increase (decrease) in payables under securities lending transactions
Net decrease (increase) in foreign exchange, assets
Net increase (decrease) in foreign exchange, liabilities
Net increase in reserve for possible loan losses
Net increase in retirement benefit asset
Net (decrease) increase in retirement benefit liability
Net increase in interest receivable
Net increase (decrease) in interest payable
Net (increase) decrease in other assets
Net increase (decrease) in other liabilities
Total adjustments¥

Net cash provided by (used in) operating activities¥

FORWARD

4,509

¥

3,733

Thousands of
U.S. Dollars
2022$

36,841(1,590)
(876)
1,188
1,250
876
(3,894)(3,971)(570)(1,079)
1,412
185
(245)
113
(3,399)(429)(37)(12,991)(7,157)
9,706
10,213
7,157(31,816)(32,445)(4,657)(13,594)(36,639)(172,122)
121,645(111,071)(299,362)

235,200
71
45,000
9,001
9,341
34
1,838
(653)
(164)
(5,277)24(2,153)362
234,805

19,300246(30,411)(5,341)
(77)
1,216
(734)
52
(5,519)(4)
1,104(1,488)(75,614)

1,921,725
580
367,677
73,54376,321277
15,017(5,335)(1,339)(43,116)
196(17,591)
2,957
1,918,498

239,315(71,880)

1,955,347

239,315¥(71,880)$

1,955,347(Continued)

9

THE CHUKYO BANK, LIMITED AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSYEARS ENDED MARCH 31, 2022 AND 2021
Millions of Yen
2022
2021
FORWARD¥239,315¥(71,880)

Thousands of
U.S. Dollars
2022$

1,955,347

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(73,427)
55,43034,854
4,748(1,345)966(684)
20,542(78,290)
81,854
82,342
1,746
5,159
(550)
155
(801)
91,616(599,942)
452,896284,778
38,794(10,989)
7,892(5,588)167,840FINANCING 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)
(869)
(2)
54
(305)
(1,179)

(56)
(867)
(3)
73
(448)
(1,303)(457)(7,100)(16)441(2,492)(9,633)

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

0258,679
91,1240
18,432
72,691
91,1240
2,113,563
744,537¥

349,803¥$2,858,101

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 ¥122.39 to $1, the approximate rate of exchange at
March 31, 2022. 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, 2022)

Name

Address

MUFG Bank, Ltd.
Misono Service Co., Ltd.
Custody Bank of Japan, Ltd. (trust a/c 4)
The Master Trust Bank of Japan, Ltd. (trust a/c)
Custody Bank of Japan, Ltd. (trust a/c)
KT CAPITAL CORPORATIONThe 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, 2022)

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
11-3, Hamamatsu-cho 2-Chome, Minato-ku,
Tokyo
8-12, Harumi 1-Chome, Chuo-ku, Tokyo
17-2, Marunouchi 1-Chome, Naka-ku, NagoyaCity, Aichi
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

39.19

2,174

9.98

992

4.55

912

4.18

620

2.85

610

2.80

417

1.91

329

1.51

296

1.36

263

1.21

Total
15,150
69.57
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, 2022, non-consolidated)(as of June 30, 2022)
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:

31.879 billion yen

Mie

15

Shizuoka

1

Osaka

3

Tokyo

1

Deposits:

1,865.5 billion yen*Including negotiable certificates of deposit

Loans and Bills Discounted:

1,549.1 billion yen

Number of Employees:

882

11

Internet branch

1

Total

87

Number of ATMs

164