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, 2023
(Based on Japanese GAAP)May 8, 2023
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 General Planning
Department

Shuji Tsuemura

Tomohiko Kikuzawa

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

June 9, 2023
June 22, 2023

Scheduled date to commence dividend payments:
Trading accounts:

June 12, 2023
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, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results
Ordinary income
Year ended March 31, 2023
Year ended March 31, 2022

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%
16,046(16.2)
8,741(6.8)
19,167–
9,387–

Millions of yen
84,74384,730%––Earnings per share

Diluted earnings per
share

Profit attributable toOrdinary profit/total
owners ofassetsparent/equity
Yen%%
336.05
3.5
0.2
–
3.5
0.3

Yen
336.06340.64

Year ended March 31, 2023
Year ended March 31, 2022

Ordinary
profit/ordinary
income%18.9
22.6(2) Consolidated financial position
Total assets
As of March 31, 2023
As of March 31, 2022

Net assets

Equity ratio

Millions of yen
5,603,724
5,712,233

Millions of yen
237,688
264,258

Cash flows fromoperating activities
Millions of yen(128,949)
294,117

Cash flows frominvesting activities
Millions of yen(117,364)(149,137)

Net assets per share
%
4.0
4.4

Yen
9,149.42
9,576.53(3) Consolidated cash flows

Year ended March 31, 2023
Year ended March 31, 2022

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(10,420)
1,348,008(5,700)1,604,721

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

Year ended March 31, 2022
Year ended March 31, 2023
Year ending March 31, 2024
(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

–
–

50.00
50.00

50.00
100.00

1,345
2,585

14.6
29.7

0.5
1.0

–

55.00

–

55.00

110.001

25.0

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
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
September 30, 2023
Full year

9,000(56.0)

6,000(53.4)

239.05

16,5002.8

11,00025.8

438.25

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(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:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
Yes

Restatement of prior period financial statements:

No(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, 2023

26,908,582 shares As of March 31, 2022

27,908,582 shares

Number of treasury shares at the end of the period
As of March 31, 2023

1,809,299 shares As of March 31, 2022

1,118,382 shares

26,010,696 shares Year ended March 31, 2022

27,559,229 shares

Average number of shares during the period
Year ended March 31, 2023

2

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2022

As of March 31, 2023

AssetsCash and due from banks
Call loans and bills bought

1,607,871
65,0001,354,859
141,000

Monetary claims bought
Money held in trust

3,052
13,5283,266
13,535

Securities
Loans and bills discounted

1,356,079
2,585,262

1,468,300
2,523,613

Foreign exchanges
Lease receivables and investment assets

11,13835,195

11,68436,445

Other assets
Tangible fixed assets

37,364
31,38851,111
32,102

Buildings, net
Land10,345
16,798

10,202
16,904

Construction in progress
Other tangible fixed assets

1,265
2,978

2,332
2,662

9,949
9,619

8,539
8,207

330
265

331
4,617

17,986(61,849)

17,282(62,631)5,712,233

5,603,724

Intangible fixed assets
Software
Other intangible fixed assets
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits

4,257,200

4,360,798

Negotiable certificates of deposit
Call money and bills sold

1,000
618,824–
532,156

Cash collateral received for securities lent
Borrowed money

313,497
155,985

360,955
26,553Foreign exchanges
Bonds payable1
20,0003
20,000Borrowed money from trust account
Other liabilities

154
53,752

164
42,925

Provision for bonuses
Retirement benefit liability

747
2,398

712
1,376

496
127

410
96

Provision for loss on interest repayment
Deferred tax liabilities

19
4,368

2
1,185

Deferred tax liabilities for land revaluation
Acceptances and guarantees

1,412
17,986

1,411
17,282

5,447,975

5,366,036

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

Total liabilities

3

(Millions of yen)
As of March 31, 2022
Net assets
Share capital
Capital surplus
Retained earnings

As of March 31, 2023

10,00010,00029,727
182,357

27,139188,428

Treasury shares(3,124)(8,216)

Total shareholders' equity

218,960

217,351

Valuation difference on available-for-sale securities

36,652

11,332

Deferred gains or losses on hedges
Revaluation reserve for land

115
2,296

(2)
2,296

Remeasurements of defined benefit plans(1,467)(1,333)

Total accumulated other comprehensive income

37,597

12,292

Non-controlling interests

7,701

8,044

Total net assets
Total liabilities and net assets

4

264,258

237,688

5,712,233

5,603,724

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, 2022

March 31, 2023
84,73036,08784,74338,319Interest on loans and discounts
Interest and dividends on securities

23,98911,37824,061
13,701

Interest on call loans and bills boughtInterest on deposits with banks

130
573

44
491

14
0

20
0

Fees and commissions
Other ordinary income

9,487
17,5599,628
15,897

Other income
Recoveries of written off receivables

21,595360

20,897263

21,23565,563

20,634
68,696

494
109

4,149
103

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

1
34

0
1,684

Interest expenses on cash collateral received for securities
lent

149

2,169

Interest on borrowings and rediscounts
Interest expenses on bonds

1
180

4
179

Other interest expenses
Fees and commissions payments

17
3,578

7
3,517

Other ordinary expenses
General and administrative expenses

13,79931,03821,84730,992Other expenses
Provision of allowance for loan losses

16,651
11,357

8,187
3,269

5,294

4,917

19,167

16,046

731

70

5
726

70
–

3,952
2,492

1,554
1,460

Impairment losses
Restructuring expenses

601
858

93
–

Profit before income taxes

15,946

14,562

Income taxes - current
Income taxes - deferred

5,723
596

2,305
3,216

Total income taxes

6,319

5,522

Profit

9,626

9,040

238

299

9,387

8,741

Other interest income
Trust fees

Other
Ordinary expenses
Interest expenses
Interest on deposits

Other
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gain on revision of retirement benefit plan
Extraordinary losses
Loss on disposal of non-current assets

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, 2022
ProfitFiscal year ended
March 31, 2023
9,626

9,040

Other comprehensive income
Valuation difference on available-for-sale securities(25,934)(27,030)(25,254)(25,269)

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

119
976

(118)
133

Comprehensive income(16,308)(16,213)Comprehensive income attributable toComprehensive income attributable to owners of parent(16,424)(16,562)116

348

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2022
(Millions of yen)
Shareholders' equity
Total
Share capital

Capital surplus

Retained earnings

Treasury shares

26,673

13,053

176,013(663)(16,673)

16,673

Balance at beginning of period

shareholders'equity215,077

Changes during period
Changes by share transfer–

Dividends of surplus(2,521)(2,521)

Profit attributable to ownersof parent

9,387

9,387

(497)

–

Transfer from retained
earnings to capital surplus

497

Purchase of treasury shares(3,041)(3,041)

Disposal of treasury shares

82

82

497

–

Cancellation of treasury
shares(497)

Reversal of revaluation
reserve for land

(23)

(23)

Net changes in items otherthan shareholders' equity
Total changes during period(16,673)

16,6736,344(2,461)

3,882

Balance at end of period

10,00029,727

182,357(3,124)

218,960

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference

Deferredonavailable-

gains orlosses on

for-salesecurities

hedges63,560(3)

Total

Revaluation Remeasurements

accumulated

reserve forof defined

other

land

benefit planscomprehensive

Noncontrollinginterests

Total net
assetsincome2,272(2,443)63,385

7,806

286,269

Changes during period
Changes by share transfer–

Dividends of surplus(2,521)

Profit attributable to ownersof parent

9,387

Transfer from retained–

earnings to capital surplus
Purchase of treasury shares(3,041)

Disposal of treasury shares

82

Cancellation of treasury
shares–

Reversal of revaluation(23)

reserve for land
Net changes in items other(26,908)

119

23

976

(25,788)(105)(25,894)

Total changes during period(26,908)

119

23

976

(25,788)(105)(22,011)

Balance at end of period

36,652115

2,296(1,467)37,597

7,701

264,258

than shareholders' equity

7

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(2,670)(2,670)

8,741

8,741

Profit attributable to ownersof parent
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
Total changes during period
Balance at end of period–(2,588)

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

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference

Deferredonavailable-

gains orlosses on

for-salesecurities

hedges36,652

115

Total

Revaluation Remeasurements

accumulated

reserve forof defined

other

land

benefit planscomprehensive

Noncontrollinginterests

Total net
assetsincome2,296(1,467)37,597

7,701

264,258

Changes during period
Dividends of surplus(2,670)

Profit attributable to owners

8,741

of parent
Purchase of treasury shares(8,081)

Disposal of treasury shares

401

Cancellation of treasury
shares–

Reversal of revaluation0

reserve for land
Net changes in items other(25,319)(118)

Total changes during period(25,319)(118)

Balance at end of period

11,332(2)

than shareholders' equity

(0)

133

(25,304)(0)

133(25,304)

343(26,569)

2,296(1,333)

12,292

8,044

237,6888343(24,960)

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from operating activities
Profit before income taxes
Depreciation

15,946
4,331

14,562
4,190

Impairment losses
Increase (decrease) in allowance for loan losses

601
7,700

93
782

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability(26)(10,642)(35)(1,021)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

(31)

–

Increase (decrease) in provision for share awards for directors(and other officers)

35

(86)

Increase (decrease) in provision for reimbursement of deposits
Increase (decrease) in provision for loss on interest repayment

(45)
(13)

(30)
(17)

Increase (decrease) in provision for point card certificatesInterest income(324)(36,087)–(38,319)

Interest expenses
Loss (gain) related to securities494(16,619)

4,149(11,325)

Loss (gain) on money held in trust
Foreign exchange losses (gains)(15)(17,807)(6)(19,204)

Loss (gain) on disposal of non-current assets
Loss (gain) on revision of retirement benefit plan

2,048
(726)

640
–

Net decrease (increase) in loans and bills discounted
Net increase (decrease) in deposits

29,603
219,488

61,648102,598

Net increase (decrease) in borrowed money (excluding
subordinated borrowings)

19,639(129,432)

Net decrease (increase) in due from banks (excluding duefrom Bank of Japan)

14,854(3,700)Net decrease (increase) in call loans
Net increase (decrease) in call money

53,044(99,869)(76,214)(86,668)

Net increase (decrease) in cash collateral received for
securities lent

83,13047,458Net decrease (increase) in trading securities
Net decrease (increase) in foreign exchanges - assets

105
(359)

–
(545)

(0)

1

384

(1,672)(1,487)

3,387

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 accountInterest received
Interest paid

9924,747(427)

24,471(3,955)

Other, net

10,692(12,827)

Subtotal

302,374(121,068)

Income taxes refund

–

1,315

Income taxes paid

(8,257)(9,196)

Net cash provided by (used in) operating activities

294,117(128,949)

9

(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2023

Cash flows from investing activities
Purchase of securities
Proceeds from sale of securities(800,593)
555,992(489,726)
298,613

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

86,488
13,69460,66917,125Purchase of tangible fixed assets
Purchase of intangible assets(2,243)(2,971)(2,477)(2,569)

496

1,000

(149,137)(117,364)

Dividends paid
Dividends paid to non-controlling interests(2,519)(221)(2,673)(5)Purchase of treasury shares
Proceeds from sale of treasury shares(3,041)
82(8,081)
340

Net cash provided by (used in) financing activities(5,700)(10,420)

Proceeds from sale of property, plant and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities

Effect of exchange rate change on cash and cash equivalents

22

21

Net increase (decrease) in cash and cash equivalents

139,302(256,712)

Cash and cash equivalents at beginning of period

1,465,419

1,604,721

Cash and cash equivalents at end of period

1,604,721

1,348,008

10