February 10, 2023－
Financial Results for the First Nine Months of FY2022 ending March 31, 2023
Main Questions and Answers[Full-year Financial Results]

grow from the current level of approximately 4 billion yen to 6 billion yen in the next

Q. What is your view of the business environment for the time being, such as economic andMid-term Plan. We expect cashless services to be a major driver of net fees andmonetary policy? Based on this, how do you think about management stance andcommissions.

readiness, investment opportunities, and downside risks?
A. We plan to increase our dividend payment by 2 yen per common share as a show of[Impact of the BOJ’s review of its monetary policy]

confidence that we can achieve our target of 60 billion yen in net income for the fullQ. According to your estimates, the revised YCC framework will increase net interest

year. As we move towards the year-end, we will continue to monitor overall trends

income by 4 billion yen in FY2025. Could you also give us some background on theclosely and we may consider rebalancing our securities portfolio as well as making

calculation of the impact on corporate loans, residential loans, and bonds?

precautionary provisions to reserves as an annual response

A. Please note that this is just a rough estimate based on the assumption that swap rates willrise after the YCC framework change and that our borrowing rates will also rise in[Net fees and commissions]tandem with the rise in interest rates. As for loans to corporate customers, the impact ofQ. Corporate solutions-related revenue has continued to increase significantly. What is yourthe interest rate hike on medium- to long-term fixed rate loans is estimated to beconfidence level regarding mid-term revenue growth for the next fiscal period andbeyond, and what is the direction of earnings from the perspective of your confidence

approximately 4.5 trillion yen. The average increase in swap rates was about 13 basis
points, and as such, we estimate that the percent increase in our lending rates linked toin the business as well as its sources?

bond interest rates will be 50%, resulting in a 2.9 billion yen increase in net income. We

A. Corporate solutions-related revenue increased significantly in 3Q and was a major driverof finance-related gains. Despite the changing business environment, we currently haveassume approximately 150 billion yen in fixed-rate residential loans in the three years
over the entire term of the loans. Multiplying this by an approximate 5-basis pointa solid transaction pipeline and expect this revenue to continue to grow.

increase in the 20-year swap rate, we estimate an approximately 100 million yen
increase in net interest income. We are also assuming approximately 400 billion yen inQ. Do you expect that the growth of your cashless operations will continue to accelerate in

new bond investments, including reinvesting bonds to be redeemed over the next threeterms of transaction volume and revenue?

years. Assuming a 25-basis point improvement in interest rates on these bonds, weA. Starting from this fiscal year into the next, we will begin offering cashless service toexpect an increase of approximately 1 billion yen in net interest income. The total of the

major franchise merchants and we expect business to grow. In terms of transaction

above effects is estimated to be approximately 4 billion yen.

volume, we expect to nearly double the current level by the final year of the next midterm plan, and as far as whole-Group top-line revenue, we expect cashless services toQ. In response to the BOJ's review of its monetary policy, other banks have adopted a policy1

of slight adjustments of their risk limits on yen bonds. Are there any plans for Chiba torevise its yen bond investment policy, such as by actively utilizing common collateral

A. Despite the difficult business environment, we would like to aim for a net income of 60
billion yen in the current fiscal year as a starting point and then aim even higher in theoperations?

next Mid-term Plan, taking into account the growth rate of loans as well as net fees andA. We at the Chiba Bank consider common collateral operations to be one method that iscommissions that make up our existing business operations in addition to the efficienteffective in providing funding flexibility. We are also aware that some banks are utilizing

management of new business ventures that we will consider in the future returns.

these operations to purchase bonds with the same maturities; however, we are notcurrently considering changing our market operations policy. If it can be determined thatQ. I would like to know what kind of discussions are taking place internally regarding thecommon collateral operations are effective as an arbitrage trade, it will be considered as

appropriate capital level for the next Mid-term Plan.

part of our overall investment strategy.

A. Our ongoing philosophy is that the net income derived from our business activities should
be appropriately allocated to investments for future growth as well as shareholder

Q. Has the ratio of fixed rate corporate and residential loans increased post-BOJ YCC

returns. While we were able to increase the dividend payout ratio to 34% for the current

revision, or has the yield on fixed-income securities actually improved slightly at thefiscal year through increased dividends, we are also considering setting a quantitative,bank?

numerical shareholder return target in the next Mid-term Plan. We will consider newA. Recently, fixed rate loans have increased slightly. However, we believe that ourinitiatives to drive growth, such as raising the ratio of risk-weighted assets in loans or

customers' needs for variable interest rates is still strong, and there are still no signs that

fud investments, as well as investments designed to achieve inorganic growth, such as

variable interest rates will rise in the future. Yields on new fixed rate loans have
improved as the swap rate has become the best rate for fixed rate loans

alliances and acquisitions. Even after making these kind of growth investments, wewould consider further shareholder returns through share buybacks and other means if
the equity ratio exceeds a reasonable range. We are required to maintain a relatively high[Capital Policy]
Q. What is the message behind your decision to increase your dividend payment, and what

external credit rating to ensure our ability to raise foreign currency. Therefore, we must
continue to maintain Tier 1 capital at or above a certain level.

are your thoughts on your future capital and shareholder return policies??
A. When compared to other banks, we are rated higher than the major banks and other[Alliance Strategy / Regional Bank Reorganization]

regional banks in terms of P/B ratio. On the other hand, we are slightly behind otherQ. In recent years, we have continued to see reorganizations of regional banks within thebanks in terms of our dividend payout ratio and dividend yield, and we are working tosame prefecture, and there are a number of regional banks in Chiba Prefecture that have

improve these areas. We are aiming for a dividend payout ratio of 35%, and this dividend
increase will allow us to raise the dividend payout ratio to approximately that level.

done so. With that in mind, what is Chiba Bank's opinion on the reorganization ofregional banks within the same prefecture?
A. Our basic stance is that restructuring and consolidation are just one business model that

[Next Mid-term Plan]
Q. What are your current views on about your mid-term earnings targets?

regional banks and other financial institutions can use to achieve sustainable growth
while solving local issues. In that sense, restructuring and consolidation are no2

different from other strategies that serve the same purpose, such as alliances with otherorganizations in the same or different industries. The Chiba Bank has prioritized its
alliances with Tsubasa, Musashino, and Yokohama as a strategy to expand our top andbottom line results. In addition, last year we announced an alliance with Sony Bank,and I believe that, so far, investors have taken a positive view of our strategy that isn’t
focused on consolidation. While we are actively cooperating with two other banks inthe prefecture in terms of administrative labor and ATM maintenance and management
and I can’t complete eliminate the possibility of reorganization or consolidation withother banks in the future, the market in Chiba Prefecture is particularly strong and isdistinct from other areas where there have been recent moves to consolidate banks.
[Human Capital]
Q. What changes does the Chiba Bank plan to make to its disclosures regarding humancapital? In addition, please tell us how you are positioning human capital in your new
Mid-term Plan.
A. We are currently considering the quantitative and qualitative aspects of such disclosures.
The Chiba Bank considers its human resources to be its most important management
resource and has established a basic human resources policy that outlines its approachto the human resources required for its operations and we intend to clearly articulate ourmethods for actively investing in human capital for the sustainable development of theBank and the regional community. We believe that it is necessary to disclose ourprogress not just conceptually but in terms of concrete results and numerical figures.

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