2020
Annual Report
Year Ended March 31, 2020

The Keiyo Bank, Ltd.

Message from the President
Active Contribution to the Real Economy
In order to support those affected by the spread of
COVID-19 and recovery from the devastating damage
caused by typhoons in 2019, we will further strengthen
our financial facilitation system and give full play to ourconsulting functions. For corporate customers, we will
support “business and employment” by smoothly
addressing new loans and flexibly responding to changes
in repayment conditions. In addition, with respect toindividual customers, we will support “life and property”
by sincerely approaching each individual, such as byproviding advice on loan repayment and appropriate
after-sales support for long-term asset management. The
spread of COVID-19 has significantly changed social
lifestyles, including means of communication withcustomers and work styles. With the aim of adapting tothe ‘new era with COVID-19,’ we are pursuing further
digitalization, such as by enhancing paperless operations
and non-face-to-face communication channels. We willcontinue to actively contribute to the real economy inlocal communities by practicing sales that are closely tied
to customers.

Toshiyuki Kumagai
President

We appreciate your continued patronage extended to theKeiyo Bank.
In addition, we would like to extend our sincere
sympathies to those infected with the novel coronavirus
disease (COVID-19), their families, and all those affectedby COVID-19.
We are pleased to announce the “Keiyo Bank 2020
Annual Report.” We hope you will deepen yourunderstanding of the Keiyo Bank by reading this report.
The Japanese economy is rapidly deteriorating due tostagnation in corporate production activities andhousehold consumption activities caused by the spread ofCOVID-19, and various issues have been emerging in thelocal communities. We, as local financial institutions, arerequired to be more actively involved in the revitalizationof the economy of local communities than ever before bydemonstrating the function of financial intermediaries
and by providing customer-oriented, high-qualityservices. In such an environment, we will address thefollowing issues to “maintain a firm connection with ourcustomers in the future.”Upgrade of the Business Management SystemIn order to continue to be a bank that is trusted byresidents of the local communities, it is essential toupgrade our business management system. The Keiyo
Bank will work to further strengthen its risk management
system, including credit risk, as well as its compliancesystem, which it regards as one of the priority issues formanagement. We will also enhance our efforts to protect
customers by preventing financial crime such as money
laundering and by thoroughly managing customer
information. In addition, the Keiyo Bank aims to further
increase its corporate value over the mid- to -long termby enhancing corporate governance and by implementing
management with awareness of the Sustainable
Development Goals (SDGs).
Through these initiatives, all officers and employees ofthe Keiyo Bank Group are determined to make utmost
efforts to earn the trust and meet the expectations of all
stakeholders. We therefore would like to seek yourcontinued support of the Keiyo Bank.
July 2020

18th Mid-term Business Plan
α ACTION PLAN 2021 -“Further Advancements”
Basic Policy (Slogan) -“A Bank Boasting the Highest Satisfaction From Both Customers and Employees.”
BusinessPlan Period

April 2018 to March 2021 (3 years)
1. Business operations tailored to customers’needs

KeyStrategies

2. Establishment of omnichannel
3. Reforms to become a professional group where all employees can shine
4. Low cost operations and profit growth

Numerical
Targets

1Profit:
JPY15.0 billion

Fees andcommissions:
JPY15.0 billion

OHR:
approx. 60%

Balance ofdeposits:
JPY5 trillion

Balance ofloans:
JPY4 trillion

Corporate Profile
Name:
Date of foundation:
Capital:Headquarters:
Network of offices etc.:
Headquarters/branch officess:Sub-branch offices:
ATM installments:
Employees:
Total assets:
Deposits:
Loans:
Capital adequacy ratio:

Credit rating:

The Keiyo Bank, Ltd.
March 31, 1943
JPY49.7 billion
11-11, Fujimi l-chome, Chuo-ku, Chiba City, Chiba
Prefecture, Japan284 locations in total:
120
2
162
1,984 people
JPY 4,990.2 billion
JPY 4,668.2 billion
JPY 3,694.2 billion
10.85% (non-consolidated)
10.83% (consolidated)(Based on new standards for a domestically-operating banks)
A– (by S&P Global Rating)A+ (by Japan Credit Rating Agency)(As of March 31, 2020)

Board of Directors and Corporate Auditors
President (Representative Director)
Toshiyuki KumagaiVice President (Representative Director)
Kiyoshi Hashimoto
Director
Director Senior Managing Executive Officer
Satoru Akiyama
Director Managing Executive Officer
Tatsushi Ichikawa
Kazuo Fujisaki
Seiji Sato
Director (Outside Director)
Yasushi Saito
Katsusada Akiyama
Hiroshi Uchimura
Tomoko Tobe

Executive Officer
Managing Executive Officer
Katsuya Taniai
Hiromi Kosaka
Executive Officer
Genichi Ashiya
Minoru Yoshida
Tomoyuki Kunii
Yasuhiko Suba
Hideaki Ushikawa
Go Fujita
Corporate Auditor
Standing Corporate Auditor
Koichi TakahashiKazuhiro Hieda
Corporate Auditor (Outside Corporate Auditor)
Isao Ono
Tsutomu Hanada
Jun-ichi Iwahara2Summary of Performance Results (non-consolidated)
Operational results (non-consolidated basis)
Highlights
As for the operational results for FY2019 (ended March 31, 2020), the balances of deposits and loans
posted a steady increase from the previous fiscal year.
Ordinary profit decreased by JPY7,517 million from the previous fiscal year to JPY7,808 million, andprofit decreased by JPY5,015 million to JPY5,511 million due to an increase in credit costs.

Balance of deposits
JPY4,668.2 billion (Annual increase of 2.4%)
Due mainly to the salary deposits and pension payments with our bank account holders, the balance ofdeposits increased to JPY4,668.2 billion as of March 31, 2020, up JPY109.7 billion from the previous
fiscal year (i.e., an annual increase of 2.4%).

Balance of loans
JPY3,694.2 billion (Annual increase of 2.2%)
As a result of our approach mainly for loans for individuals such as housing loans, the balance of loans
reached JPY3,694.2 billion as of March 31, 2020, up JPY80.8 billion from the previous fiscal year (i.e.,an annual increase of 2.2%).

Ordinary profit and profit
Ordinary profit: JPY7.8 billion/Profit: JPY5.5 billion
Ordinary profit decreased by JPY7,517 million from the previous fiscal year to JPY7,808 million, andprofit decreased by JPY5,015 million to JPY5,511 million due to a temporary increase in credit costs
caused by implementing a preventive provision against changes in business conditions at business
partners and the spread of COVID-19.

Capital adequacy ratio
10.85%
The capital adequacy ratio increased by 0.07 percentage points from the previous fiscal year to 10.85%,
mainly due to an increase in equity capital.

3

Non-performing loans ratio(based on the Act on Emergency Measures for Revitalizing the Financial Functions of Japan)

1.26%
The Keiyo Bank’s non-performing loans ratio was 1.26% as of March 31, 2020, up 0.09 percentage
points from the previous fiscal year, based on the Act on Emergency Measures for Revitalizing theFinancial Functions of Japan.

Balance of loans to small and medium-sized companies, etc.
JPY2,995.9 billionAs a result of our response to the financial needs of the residents of the local communities, the balanceof loans to small and medium-sized companies, etc., as of March 31, 2020 reached JPY2,995.9 billion,
up JPY35.7 billion from the previous fiscal year (i.e., annual increase of 1.2%).
‌to small and medium-sized companies, etc. = loans for individuals + loans for small and* loans
medium-sized companies

Balance of housing loans
JPY1,529.6 billion
As a result of our aggressive approach in responding to customers’ needs for housing finance, thebalance of housing loans as of March 31, 2020 reached JPY1,529.6 billion, up JPY67.7 billion from theprevious fiscal year (i.e., annual increase of 4.6%).

Balance of other loans (*)
JPY48.3 billion
The balance of loans for individuals and other (*) reached JPY48.3 billion as of March 31, 2020, up
JPY1.4 billion from the previous fiscal year (i.e., annual increase of 3.1%), as a result of our endeavor
to offer a wide variety of loan products in response to various needs of our customers, in addition toincreasing convenience for them in applying for such loan products.
* “Other loans” means consumer loans excluding housing loans.

Credit rating
The credit rating (the long-term obligor rating) for the Keiyo Bank given by S&P Global Ratings, one,of the world s top three credit-rating companies, was “A‒” as of June 30, 2020. The credit rating (thelong-term obligor rating) by Japan Credit Rating Agency remained “A+” as of June 30, 2020. Bothrating companies gave higher ranking appraisal to the Keiyo Bank.

4

(Unaudited)

Consolidated Balance Sheets
Unit:Thousands ofU.S. dollars

Unit:JPY milion※Note2018

2019

2019

¥275,936
6,265
4,247
888,553
3,613,625
2,949
40,33563,385
26,684
31,106
94
5,499
5,661
2,261
3,200
199
37
3,915
△9,545¥250,132
3,980
3,931
933,367
3,694,413
3,498
39,74861,31325,38831,059
134
4,731
6,222
1,966
4,056
199
6,809
3,940
△12,635$2,298,373
36,57036,1208,576,375
33,946,641
32,141
365,230
563,383
233,281285,390
1,231
43,471
57,171
18,06437,2691,828
62,56536,203△116,098

4,895,368

4,994,723

45,894,725¥4,556,163
16,000173
10,782
1,245
66
2,669
5
8
623
867
3,349
4,639
3,915

¥4,665,243
17,000135
15,242
1,307
61
2,507
2
5
799
1,165
363
4,639
3,940

$42,867,251
156,206
1,240
140,053
12,009560
23,03518
45
7,341
10,704
3,335
42,62636,2034,600,513

4,712,416

43,300,707¥49,759
39,704
174,810△12,789¥49,759
39,704
171,957△8,432$457,217
364,825
1,580,051△77,478

Total shareholders' equity

251,485

252,989

2,324,625

Valuation difference on available-for-sale securities
Revaluation reserve for landRemeasurements of defined benefit plans

33,642
6,858△1,66320,065
7,198△2,744

184,370
66,139△25,213

Total accumulated other comprehensive income

38,837

24,519225,296

Share acquisition rights
Non-controlling interests

293
4,238

346
4,451

3,179
40,898294,855

282,306

2,594,009

4,895,368

4,994,723

45,894,725

Assets:Cash and due from banks
Call loans and bills bought
Trading account securities
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Buildings, netLand
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Software in progress
Other intangible fixed assets
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

Liabilities:
Deposits
Negotiable certificates of deposit
Foreign exchanges
Other liabilities
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit liability
Provision for retirement benefits for directors (and other officers)
Provision for loss on interest repayment
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities

Net assets:
Share capital
Capital surplus
Retained earnings
Treasury shares

Total net assets
Total liabilities and net assets

Summary of Performance Results (consolidated)
Unit:Thousands of
U.S. dollars

Unit:JPY milion

Ordinary income
Ordinary profit
Profit attributable to owners of parent
Comprehensive income
Total net assets
Total assets
Capital adequacy ratio (Based on standards for a domestically-operating bank)

5※NoteFY2018

FY2019FY2019¥67,465
15,670
10,547
3,824
294,855
4,895,368
10.78%¥68,081
8,182
5,564
△8,875282,306
4,994,723
10.83%$625,571
75,181
51,125△81,5492,594,009
45,894,725
10.83%※‌Note:U.S.dollar amounts are shown solely for the purpose of convenience and calculated at the conversion rate of ¥108.83 to US$1.00, the exchange rate
prevailing on March 31, 2020

(Unaudited)

Consolidated Statements of (comprehensive) IncomeUnit:Thousands ofU.S. dollars

Unit:JPY milion※Note2018

2019

2019

¥67,465¥68,081$625,571

48,73537,183
10,934140466
911,370
1,380
5,979
4
5,974

47,93036,557
10,81887466
010,849
1,801
7,499
3
7,496

440,411335,90999,402799
4,281
0
99,687
16,54868,90527
68,878¥51,794¥59,899$550,390

811
503
2
△14
320
0
4,003
1,775
37,418
7,785
5,055
2,730

778
454
2
△123340
4,447
471
37,067
17,134
13,188
3,945

7,148
4,171
18
△110
3,069040,861
4,327
340,595
157,438
121,179
36,249¥15,670¥8,182$75,181

Extraordinary income
Gain on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment lossーー
238
101
137

235
235
329
127
202

2,159
2,159
3,023
1,166
1,856

Profit before income taxes

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans and bills boughtInterest on deposits with banks
Other interest income
Fees and commissions
Other ordinary income
Other income
Recoveries of written off receivables
Other

Ordinary expenses
Interest expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money and bills soldInterest on payables under securities lending transactions
Interest on borrowings and rediscounts
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Provision of allowance for loan losses
Other

Ordinary profit¥15,432¥8,087$74,308

Income taxes - current
Income taxes - deferred

4,716△235,514△3,19850,666△29,385

Total income taxes

4,693

2,316

21,280

Profit10,739

5,771

53,027

191

206

1,892

¥10,547¥5,564$51,125

Profit attributable to non-controlling interests

Profit attributable to owners of parent

Consolidated Statements of Comprehensive Income
Unit:Thousands ofU.S. dollars

Unit:JPY milion※Note2018

2019

2019

¥10,739△6,914△6,638△276¥5,771△14,646△13,558△1,088$53,027△134,576△124,579△9,997

Comprehensive income

3,824△8,875△81,549

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

3,433
390

△9,093
217△83,552
1,993

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

6

The Keiyo Bank, Ltd.
Head Office

11-11,Fujimi 1-chome,Chuo-ku,Chiba City,Chiba 260-0015,Japan
Phone:+81 43 2222121
URL: https://www.keiyobank.co.jp

Treasury And Securities Division International Business Group

5-45,Chiba-Minato,Chuo-Ku,Chiba City,Chiba 260-0026,Japan
Phone:+81 43 3068271
Fax:+81 43 3017004
E-mail: kokusaigyom@keiyobk.jp
SWIFT Code:KEIB JP JT