Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2024
(Based on Japanese GAAP)
April 26, 2024
Company name:Hokkoku Financial Holdings,Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:

Inquiries:

7381
URL https://www.hfhd.co.jp/
President & Chief Executive Officer
Representative Director
Managing Executive Officer,
General Manager of Corporate Planning
Department

Shuji Tsuemura

Naotaka Terai

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 14, 2024
June 17, 2024

Scheduled date to commence dividend payments:
Trading accounts:

May 27, 2024
No

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
No

TEL

076-263-1111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
Ordinary income
Year ended March 31, 2024
Year ended March 31, 2023

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
14,461
(9.8)
9,055
3.5
16,046(16.2)
8,741(6.8)

Millions of yen
90,83984,743%
7.1–

Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total
owners ofassetsparent/equity
Yen%%
378.153.8
0.2
336.053.5
0.2

Yen
378.26
336.06

Year ended March 31, 2024
Year ended March 31, 2023

Ordinary
profit/ordinary
income%15.9
18.9(2) Consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023

Net assets

Equity ratio

Millions of yen
5,758,652
5,603,724

Millions of yen
252,954
237,688

Cash flows fromoperating activities
Millions of yen
183,653(128,949)

Cash flows frominvesting activities
Millions of yen
51,406(117,364)

Net assets per share
%
4.2
4.0

Yen
10,533.34
9,149.42(3) Consolidated cash flows

Year ended March 31, 2024
Year ended March 31, 2023

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(12,522)
1,570,556(10,420)
1,348,008

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

50.00
55.00

–
–

50.00
55.00

100.00110.00

2,585
2,604

29.7
29.0

1.0
1.1

–

60.00

–

60.00

120.001

27.8

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen%
Yen
Six months ending
8,500 (13.8)
5,500 (19.6)
237.21
September 30, 2024
Full year
15,000
3.7
10,00010.4
431.304. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2024
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

25,208,582 shares As of March 31, 2023

26,908,582 shares

Number of treasury shares at the end of the period
As of March 31, 2024

2,023,177 shares As of March 31, 2023

1,809,299 shares

23,939,197 shares Year ended March 31, 2023

26,010,696 shares

Average number of shares during the period
Year ended March 31, 20242

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of March 31, 2024

AssetsCash and due from banks
Call loans and bills bought

1,354,859
141,000

1,576,763
166,000

Monetary claims bought
Money held in trust

3,266
13,535

3,195
13,532

Securities
Loans and bills discounted

1,468,300
2,523,613

1,488,459
2,418,522

Foreign exchanges
Lease receivables and investment assets

11,68436,445

6,344
39,329Other assets
Tangible fixed assets

51,111
32,102

39,04637,903

Buildings, net
Land

10,202
16,904

12,437
15,691

Construction in progress
Other tangible fixed assets

2,332
2,662

5,994
3,779

8,539
8,207

10,269
8,925

–
331

1,016
327

Deferred tax assets
Customers' liabilities for acceptances and guarantees

4,617
17,282

1,061
18,166

Allowance for loan losses(62,631)(59,943)

5,603,724

5,758,652

4,360,798
532,156

4,679,694
423,297

Cash collateral received for securities lent
Borrowed money

360,955
26,553

318,6395,396Foreign exchanges
Bonds payable3
20,0001
20,000Borrowed money from trust account
Other liabilities

164
42,925167
32,722

Provision for bonuses
Retirement benefit liability

712
1,376

697
684

410
96

410
68

Provision for loss on interest repayment
Deferred tax liabilities

2
1,185

0
4,506

Deferred tax liabilities for land revaluation
Acceptances and guarantees

1,411
17,282

1,244
18,166

5,366,036

5,505,697

Intangible fixed assets
Software
Goodwill
Other intangible fixed assets

Total assets
Liabilities
Deposits
Call money and bills sold

Provision for management board incentive plan trust
Provision for reimbursement of deposits

Total liabilities

3

(Millions of yen)
As of March 31, 2023
Net assets
Share capital
Capital surplus
Retained earnings

As of March 31, 2024

10,00010,00027,139188,428

19,507
195,209

Treasury shares(8,216)(9,814)

Total shareholders' equity

217,351

214,902

Valuation difference on available-for-sale securities

11,332

28,084

Deferred gains or losses on hedges
Revaluation reserve for land

(2)
2,296

(35)
1,986

Remeasurements of defined benefit plans(1,333)(718)

Total accumulated other comprehensive income

12,292

29,317

Non-controlling interests

8,044

8,735

Total net assets
Total liabilities and net assets

4

237,688

252,954

5,603,724

5,758,652

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)

Ordinary income
Interest income

Fiscal year ended

Fiscal year ended

March 31, 2023

March 31, 2024
84,74338,31990,83941,042

Interest on loans and discounts
Interest and dividends on securities

24,061
13,701

24,705
15,596

Interest on call loans and bills boughtInterest on deposits with banks

44
491

135
450

20
0

153
0

Fees and commissions
Other ordinary income

9,628
15,897

9,983
14,845

Other income
Recoveries of written off receivables

20,897263

24,967370

20,634
68,696

24,59776,378

4,149
103

7,634
162

Interest on negotiable certificates of deposit
Interest on call money and bills sold

0
1,684

–
2,042

Interest expenses on cash collateral received for securities
lent

2,169

5,236

4
179

12
179

Other interest expenses
Fees and commissions payments

7
3,517

0
3,642

Other ordinary expenses
General and administrative expenses

21,84730,992

25,23033,764

Other expenses
Provision of allowance for loan losses

8,187
3,269

6,106
3,271

4,917

2,835

16,046

14,461Other interest income
Trust fees

Other
Ordinary expenses
Interest expenses
Interest on deposits

Interest on borrowings and rediscounts
Interest expenses on bonds

Other
Ordinary profit
Extraordinary income

70

121

Gain on disposal of non-current assets
Extraordinary losses

70
1,554

121
1,720

Loss on disposal of non-current assets
Impairment losses

1,460
93

405
985

–

329

Profit before income taxes

14,562

12,862

Income taxes - current

2,305

3,587

Income taxes - deferred

3,216

(826)

Total income taxes

5,522

2,761

Profit9,040

10,100

299

1,045

8,741

9,055

Loss on disaster

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2023
ProfitFiscal year ended
March 31, 2024
9,040

10,100

Other comprehensive income
Valuation difference on available-for-sale securities(25,254)(25,269)

16,967
16,385

Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax

(118)
133

(32)
614

Comprehensive income(16,213)

27,067

Comprehensive income attributable toComprehensive income attributable to owners of parent(16,562)

26,389348

678

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2023
(Millions of yen)
Shareholders' equity
Total
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

Treasury shares

29,727

182,357(3,124)10,000shareholders'equity218,960

Changes during period
Dividends of surplus
Profit attributable to ownersof parent(2,670)(2,670)

8,741

8,741

Purchase of treasury shares(8,081)(8,081)

Disposal of treasury shares

(25)

427

401

Cancellation of treasury
shares(2,562)

2,562–

Reversal of revaluation0

reserve for land0

Net changes in items otherthan shareholders' equity–(2,588)

6,070(5,091)(1,609)10,00027,139188,428(8,216)217,351

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference
on availablefor-salesecurities
Balance at beginning of period

36,652

Deferred
gains orlosses onhedges

Total

Revaluation

Remeasurements

accumulated

reserve forland

of defined benefit

other

plans

comprehensive

Noncontrollinginterests

Total net
assetsincome115

2,296(1,467)37,597

7,701

264,258

Changes during period
Dividends of surplus(2,670)

Profit attributable to ownersof parent

8,741

Purchase of treasury shares(8,081)

Disposal of treasury shares

401

Cancellation of treasury–

shares
Reversal of revaluation
reserve for land0

Net changes in items otherthan shareholders' equity(25,319)

(118)

(0)

133

(25,304)

343(24,960)

Total changes during period(25,319)

(118)

(0)

133

(25,304)

343(26,569)

Balance at end of period

11,332(2)

2,296(1,333)

12,292

8,044

237,688

7

Fiscal year ended March 31, 2024
(Millions of yen)
Shareholders' equity
Share capital

Totalshareholders'Capital surplus

Retained earnings

Treasury shares

27,139188,428(8,216)equityBalance at beginning of period

10,000217,351

Changes during period
Dividends of surplus(2,583)(2,583)

Profit attributable to ownersof parent

9,055

9,055

Purchase of treasury shares(9,925)(9,925)

Disposal of treasury shares

(56)

645

588

Cancellation of treasury
shares(7,682)

7,682–

Reversal of revaluation
reserve for land

309

309

Change by businesscombination

97

97

Change in ownership interestof parent due to transactions
with non-controlling interests

99Net changes in items otherthan shareholders' equity–(7,631)

6,781(1,597)(2,448)10,00019,507

195,209(9,814)

214,902

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Valuationdifference
on availablefor-salesecurities
Balance at beginning of period

11,332

Deferred
gains orlosses onhedges

Total

Revaluation
reserve forof defined benefit

other

land

plans

comprehensive

Remeasurements

accumulated

Noncontrollinginterests

Total net
assetsincome(2)

2,296(1,333)

12,292

8,044

237,688

Changes during period
Dividends of surplus(2,583)

Profit attributable to ownersof parent

9,055

Purchase of treasury shares(9,925)

Disposal of treasury shares
Cancellation of treasury
shares588–

Reversal of revaluation
reserve for land309

Change by businesscombination

97

Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders' equity

9

16,752(32)

Total changes during period

16,752(32)

Balance at end of period

28,084

(35)

(309)

8

614

17,024690

17,714(309)

614

17,024690

15,266

1,986

(718)

29,317

8,735

252,954

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Cash flows from operating activities
Profit before income taxes
Depreciation

14,562
4,190

12,862
4,021

Impairment losses
Amortization of goodwill

93
–

1,009
53

Increase (decrease) in allowance for loan losses
Increase (decrease) in provision for bonuses

782
(35)

(2,688)(14)(1,021)

(692)

(86)

–

(30)

(28)

Increase (decrease) in provision for loss on interest repayment
Interest income(17)(38,319)(2)(41,042)Interest expenses
Loss (gain) related to securities

4,149(11,325)

7,634(12,474)

Loss (gain) on money held in trust
Foreign exchange losses (gains)(6)(19,204)

3(23,712)

Loss (gain) on disposal of non-current assets
Net decrease (increase) in loans and bills discounted

640
61,648284
105,090

Net increase (decrease) in deposits
Net increase (decrease) in borrowed money (excluding

102,598

318,895(129,432)(21,157)(3,700)791

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for share awards for directors(and other officers)
Increase (decrease) in provision for reimbursement of deposits

subordinated borrowings)
Net decrease (increase) in due from banks (excluding duefrom Bank of Japan)
Net decrease (increase) in call loans(76,214)(24,929)(86,668)(108,858)

47,458(42,315)

(545)

5,339

1

(2)

(1,672)(3,004)

3,387

(303)

9

3

Interest received
Interest paid

24,471(3,955)24,807(7,796)

Other, net(12,827)(9,838)Subtotal(121,068)

181,935

Net increase (decrease) in call money
Net increase (decrease) in cash collateral received for
securities lent
Net decrease (increase) in foreign exchanges - assets
Net increase (decrease) in foreign exchanges - liabilities
Net decrease (increase) in lease receivables and investments
in leases
Net decrease (increase) in cash collateral paid for financial
instruments assets
Net increase (decrease) in borrowed money from trust accountIncome taxes refund

1,315

3,535

Income taxes paid

(9,196)(1,817)(128,949)

183,653

Net cash provided by (used in) operating activities

9

(Millions of yen)
Fiscal year ended
March 31, 2023

Fiscal year ended
March 31, 2024

Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities(489,726)
298,613(300,791)
255,012

Proceeds from redemption of securities
Proceeds from fund management as investing activities

60,66917,12591,61918,522

Purchase of tangible fixed assets
Purchase of intangible assets(2,477)(2,569)(9,334)(2,742)

Proceeds from sale of property, plant and equipment
Payments for asset retirement obligations

1,000
–

99
(31)

–

(947)

(117,364)

51,406(2,673)(2,579)

(5)

(5)

–

(11)

(8,081)(9,925)Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Net cash provided by (used in) investing activities
Cash flows from financing activities
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Purchase of treasury shares
Proceeds from sale of treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

340–(10,420)(12,522)21

9

Net increase (decrease) in cash and cash equivalents(256,712)

222,547

Cash and cash equivalents at beginning of period

1,604,721

1,348,008

Cash and cash equivalents at end of period

1,348,008

1,570,556

10