Annual Report 2021
Year ended March 31, 2021

Profile

The Region’s Best Partner for Creating
a Prosperous, Dynamic and Bright Future
Founded in 1878, The Iyo Bank, Ltd. is a regional financial services institution boasting a solid operating base centered on the four prefectures of Shikoku and the seven prefectures surrounding
the Seto Inland Sea. With branches in Tokyo and Nagoya as well, we are Japan’s No.1 regionalbank in terms of broad regional coverage. In recent years, we have also enhanced our network ofoverseas bases primarily in the ASEAN region to support the international business expansion of
our clients. We at Iyo Bank are working to be the region’s best partner for creating a prosperous,
dynamic and bright future by offering friendly and trustworthy financial services to customers.

Corporate Credo

1

Creating a bright and prosperous future for the region

2

Offering the best service and being worthy of people’s trust

3

Rendering our best service with gratitude in our hearts

Contents
Our Operating Area∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙2
Message from the President∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙4
Our Vision and Plan∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙8
Efforts for SDGs∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙9
Corporate Governance / Compliance / Risk Management∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙11
Financial Section∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙14
Corporate Data / Directory∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙57

THE IYO BANK, LTD.
Annual Report 2021

Forward-Looking
Statements:
Statements contained in this report concerning plans, predictions, and strategies toimprove future performance (“Forward-Looking Statements”) are based information
currently available to the Bank’s management, and inevitably involve a certain elementof risk and uncertainty.

Annual Report 2021
Year ended March 31, 2021

005_0057401372109.indd

32021/08/12

9:22:27

Cover Photos (from the top):
Shikoku Karst in summer
Recommended citrus in Ehime
Matsuyama Castle with spring flowers

Head Office
1, Minami-Horibata-cho, Matsuyama 790-8514
URL: https://www.iyobank.co.jp/

Year of Foundation
1878
Number of Employees(The Iyo Bank, Ltd. and its Consolidated Subsidiaries)
3,071
Number of Branches(As of March 31, 2021)
150 (Domestic 149, Foreign 1)

Global Network
Our global network comprehensively supports our clients’ overseas business endeavors.
We support our customers’ efforts to globalize their businesses through trade operations, the establishment of local corporations
and fund procurement by leveraging our network of three overseas sites consisting of the Singapore branch and two representative
offices in Shanghai and Hong Kong.
Our overseas network also involves business alliances and cooperations with banks, etc., in China, India, Indonesia, Mexico, Singapore, Philippines, Taiwan, Thailand, U.S.A. and Vietnam (as of March 31, 2021).
Bangkok, Thailand
Business alliance with Kasikorn Bank
Dalian, China
Business alliance with Bank of DalianHanoi, Vietnam
Business cooperation with BIDVJakarta, Indonesia
Business alliance with BNI
Mexico	Business cooperation with Jalisco, Aguascalientes, Guanajuato, Nuevo León and
Makati City, Philippines
Business alliance with Metropolitan Bank
Mumbai, India
Business cooperation with State Bank of India
Shanghai, China
Business alliance with Bank of Communications
Singapore
Business alliance with UOBTaipei, Taiwan
Business alliance with CTBC Financial Holding
Honolulu, Hawaii,U.S.A.
Business alliance with Central Pacific Bank

Banamex (Mexico City)

Shanghai, China

Representative OfficeHong Kong

Representative Office

Singapore
BranchOur Overseas Business Support• Provision of various types of information about entering overseas markets• Advice about entering overseas markets• Advice about trade operations and fund settlements• Support for funds procurement in the local area overseas• Implementation of overseas business matching• Holding of seminars about entering overseas markets
IYO BANK Annual Report 2021

1

Our Operating Area

Domestic Branch Network
The No. 1 regional bank in terms of broad regional coverage, Iyo Bank’s network consists of 149
branches located in 13 prefectures (as of March 31, 2021).

Imabari Region
Number of ocean-going vessels owned Towels (2018)
by domestic ship owners (2020)¥53.6 billion shipped in Japan
3,663 total vessels in Japan

32.7%

5

65.0%

(1,199 ships)(¥34.8 billion)

No.1 in Japan

No.1 in Japan

Hiroshima

Automotive, shipbuilding,electronics* Number of ocean-going vessels owned by domestic ship owners (2018) are Iyogin
Regional Economy Research Center, Inc. (IRC) estimates.

Matsuyama Region

1

Yamaguchi

The Matsuyama region has companies with large shares in
products such as “small oncethrough steam boilers,” “farmmachinery,” and “dried bonito
shavings.”

Imabari

Shipbuilding, ocean transport,
oil, towels and garments

Matsuyama

Electronics, farm machinery, chemicals, tourism

117

2

Ehime

Fukuoka

Chemicals, electronics,
nonferrous metal, general machinery

Ozu
Yawatahama

6

Citrus, food processing

Steel, automotive,
electronics, tourism

Culture fishery

Sea culture industry (2019)¥480.2 billion total national production

13.8%(¥66.2 billion)

No.1 in Japan

Economic Indicators of the Setouchi Region
Total of ten
prefectures

17.0%
Total population(Population
estimate)(October 2019)(Prepared based on various statistical data)
2

IYO BANK Annual Report 2021

Total of nine
prefectures(excluding Hyogo)

12.7%
Total population(Population
estimate)(October 2019)

Total of ten
prefectures

15.7%
Gross prefectural
product(Nominal)(Fiscal 2018)

Total of nine
prefectures(excluding Hyogo)

11.8%
Gross prefectural
product(Nominal)(Fiscal 2018)

1

Kochi

UwajimaOita

Uwajima Region

NiihamaMain Industries in Ehime Prefecture• Industries with top national share concentrated in each region• Manufactured product shipments from Ehime Prefecture
totaled ¥4.3 trillion (45% of Shikoku) in 2018

Industrial Structure of the Setouchi
Region• The Setonaikai coastal region has established various industrial structures

2

3

Shikokuchuo Region

Hyogo

Pulp and paper industry (2019)

Okayama¥7,679.3 billion shipped in Japan

Automotive,
oil refining, steel

7.2%

3

(¥570.2 billion)

No.2 in Japan

Osaka

5

Niihama Region

KagawaShipbuilding, textiles

Manufactured product shipments (2018)¥1,740.4 billion
Shikokuchuo

Paper manufacturing and processing

Approx. 41% of shipments of manufactured

1

products in Ehime

As a corporate town under the Sumitomo Group, nonferrous metal,
chemicals, steel, machinery and equipment are concentrated
particularly in the Niihama region.

Tokushima

No. 1 Market Sharein Ehime

2

Tokyo

About Ehime Prefecture• Area5,676 km2 (As of January 1, 2021)• Population

1,324,882 (As of July 1, 2021)• Number ofhouseholds

601,809 (As of July 1, 2021)

Strengthen Measures
Toward Regional
Vitalization through the“Shikoku Alliance”• Formed the “Shikoku Alliance,” a comprehensive alliance between four regionalbanks aiming for revitalizing the Shioku
region in November 2016• Announced key measures and the logo in
April 2017

1

Aichi

* The numbers next to the prefecture names denotenumber of branches.
* These 149 domestic branches include our Internet
branch.

The region, customers and the four banks willsustainably grow and develop
Iyo Bank

Hyakujushi Bank

Build

Utilize

Support industrial
development

Shikoku resources
branding

FosterConnect

Support the formationof financial assets

Shikoku Bank

Support network
expansion

Cooperate

Awa Bank
IYO BANK Annual Report 2021

3

Message from the President

Kenji Miyoshi, President

Introduction

I would like to wholeheartedly thank you all for your continued support of Iyo Bank.
Even amid the changes to the environment brought about
by factors such as COVID-19, Iyo Bank will continue to strive
to solve the challenges facing its local communities andcustomers and create new value. Based on our corporate
credo to “create a bright and prosperous future for theregion,” we will provide services using digital technology,
achieve high productivity, and implement meticulous consulting activities through our people.
As a comprehensive financial institution in your hometown, we will strive for sound management while strengthening our capabilities. Management and employees alike willcontinue to work together as a group, ever mindful of our
gratitude to the people of the region, to realize a sustainable
and vibrant local community. We sincerely thank you for yourcontinued support and encouragement.

Financial and Economic Environment

Due to the impact of COVID-19, the situation of the Japanese
economy in fiscal 2020, ended March 31, 2021, was generally severe. Consumer spending was down, manufacturing
activities stagnated, corporate earnings fell, and the employment situation deteriorated. At the moment, the resurgenceof COVID-19 is increasing downward pressure on the economy, hampering the move towards recovery. Looking ahead,
although there is a high degree of uncertainty, as we recoverfrom the effects of the pandemic, the economy is expected to
improve, albeit gradually, supported by renewed foreign
demand and the government’s economic stimulus package.
Like Japan as a whole, the economy of Ehime Prefecture
as a whole is expected to recover gradually, although there is
still a sense of stagnation due to a recent resurgence in
COVID-19 cases.

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IYO BANK Annual Report 2021

Business Performance

Under these circumstances, in line with our “Digital-HumanDigital Bank” vision set forth in the Fiscal 2018 Medium-Term
Management Plan, we endeavored to expand our fields ofoperation and strengthen profitability by leveraging digitaltechnologies to improve customer convenience and productivity, and by refining our ability to provide value that only
people can provide.

Regional Vitalization Initiatives

In line with its aim of growing sustainably along with its
region, Iyo Bank has been involved in a variety of regional
vitalization measures and provided support for realizing
customers’ bountiful lives and business development.
Using the framework of the Shikoku Alliance, in April
2020, we established a regional trading company, Shikoku
Brand Co., Ltd. as an advanced banking service company
through joint investments by four banks to promote Shikoku’sabundant raw commodities and tourism resources both
domestically and internationally. The new company will create
added value by providing a one-stop shop for branding andsales channel development to address the challenges faced bycustomers in the region. It will also implement Shikoku Sōsei(Shikoku Creation), which aims to create a virtuous cycle forthe economy.
As an initiative for community development and tourism
promotion, in July 2020, as the Ozu Town Creation Fund LLP’s
first project, we invested in a corporation established by Kita
Management, a general incorporated association and a
destination management organization (DMO) for Ozu City. By
supporting businesses through investment, we are promoting
regional vitalization initiatives, such as the opening of NIPPONIA HOTEL Ozu Castle Town, a hotel spread over several
renovated historical mansions, townhouses, and traditional
houses around the Ozu castle town.
As an initiative to provide support for those affected by
COVID-19, while working to prevent the spread, we aretaking all possible measures as the region’s financial infrastructure to support our customers’ cash flow and resolve
their business issues.
In addition to confirming the impact of COVID-19 througha survey of all business locations, and providing appropriate
and timely information on interest-free loans and otherfinancing support, in April 2020, we launched the Iyogin
Business Support Loan “Just.” The loan allows customers totake flexible measures such as defer principal repayments
depending on their cash situation. We are actively working tostabilize customers’ cash flow and reduce their repayment
burden.
Additionally, to provide not just financing support, but
support across a wide range of business issues, we established a COVID-19 support team, also in April. Our branches
and headquarters are working together to provide management support. Then in July, to help businesses facing a changing environment due to the pandemic, we launched a website
to support local products and services in the categories offood, alcohol, sightseeing and experiences, crafts, and others.
We are expanding the circle in the local area for people tosupport businesses by eating or using their products andservices.

Bank Branches and ATMs

Iyo Bank has continued to have a broad-ranging branch
network that covers 13 prefectures in Japan, the largest
number of prefectures covered by a regional bank. And given
the current decline in population and branch foot traffic, wehave been reviewing the allocation of our branches while
maintaining touch points with local customers. We relocatedeight branches—Iioka and Funaki (July 2020), Haramachi,
Okada, and Miyanishi (September), Ozu Honmachi (January2021), and Nakanosho and Yanomachi (March)—to neighboring branches. Thus, we are working to ensure the best way tooperate branches depending on each area’s characteristics.
So that we can listen to our customers’ challenges andprovide higher value-added consulting services, we are aiming
to transform our branches from a “place mainly for administrative tasks” to a “place where customers’ issues are solved.”
We opened two pilot branches: Yogo Branch, a newly built
branch in April 2020, and the refurbished Yawatahama
Branch in September. In addition to these two branches,
Matsuyamakita Branch has extended its consultation service
hours to 5pm on weekdays. In solving customers’ challenges,
such as asset management and borrowing, we are working tocreate an environment that enables us to deliver value that
only people can provide.
In addition, we have been working to improve customer
convenience by simplifying administrative procedures andreducing waiting time. We installed the AGENT System ontablet devices across all our branches, enabling customers tocarry out procedures at the bank without their personal sealor filling forms. We also expanded the “Satto (quick) counter” in 76 branches (as of March 31, 2021) which provides
semi-self-served cash transactions and tax payments among
others. In April 2020, in order to simplify administrative
procedures for both customers and the Bank, we introduced
CUBE, a system that allows customers to sign electronicallyrather than use a traditional personal seal when they entrust
the Bank with cash or their bank book. In addition, we havebeen working to expand business opportunities by taking the
AGENT System tablets to our sales liaison activities since July.
We have installed out-of-store ATMs in 180 locations (asof March 31, 2021; excluding convenience store ATMs), thelargest number in Ehime Prefecture. We also offer a no-fee
service when using other banks’ ATMs in collaboration with
regional banks in Shikoku (Awa Bank, Hyakujushi Bank, andShikoku Bank), Hiroshima Bank, San-in Godo Bank, JA EHIMEKENSHINREN, and agricultural cooperatives in Ehime Prefecture.

Products and Services

With regard to deposit products, since the aging population
has increased demand for adult guardianship, in April 2020,
we launched a deposit system to support guardianship. The
system was created to prevent trouble with guardians related
to the protection and management of assets, and to protect
the customers’ valued assets themselves.
As for financing products, in September 2020, we addeda service to our Flood Damage Responsive Financing that can
detect and warn of flooding using IoT technology. Additionally, we became Japan’s first financial institution to offer afinancing scheme that exempts debt obligations for a prescribed ratio of principal balance of loans when IoT sensors
installed on the customer’s premises detect flooding. Thus,
we are working to support customers’ BCP and their natural
disaster risk response.
As part of our consulting services, we launched in April
2020 a staffing business to provide solutions to securingpersonnel, a key management challenge for businesses acrossthe region. After listening to our clients’ recruitment needs,
we collaborate with partner staffing agencies to introduce theright people. In December, we launched an SDG diagnosis
service to enable our customers to objectively grasp theirefforts toward achieving the SDGs. We are supporting theirefforts to improve their corporate image and create new
business opportunities. Going forward, we will continue tosupport the growth and development of our customers’
businesses in the non-financial sector by expanding ourconsulting services.
As for initiatives utilizing digital technology, we expanded
the API collaboration linking Fintech companies with theBank’s systems to provide services that support asset formation, asset management, and accounting efficiency. In November 2020, we renewed our Money Manager smartphoneapp, adding a transfer function, revamping the screen design,and making it possible to conduct banking transactions evenmore conveniently. In May, we also began offering SAFETY, asmartphone card-loan app that automatically calculatesmonthly shortfalls. It notifies the customer when such ashortfall occurs, allowing them to borrow 24 hours a day witha single tap. In December, as an addition to our HOME, aservice enabling customers to make applications for homeloans with a smartphone, we introduced HOME House Builder, which aims to reduce the burden on customers in the loan
process through collaboration between the Bank and housing-related companies. This service enables housing-relatedcompanies to submit the large number of documents necessary for the home loan procedure on behalf of customers via
a dedicated website and without the need for face-to-facemeetings. We will continue to proactively utilize digital technology and provide high-value added financial services toincrease ease-of-use and convenience for customers.

IYO BANK Annual Report 2021

5

Message from the President

SDGs Initiatives

In terms of our work on the SDGs, goals for the entire international community adopted by the United Nations, in July
2019, we established the Iyogin Declaration on SDGs toovercome the social and environmental challenges in theregion. We are promoting efforts to address the SDGs throughour core business in addition to our existing social contribution activities.
In our efforts to support the local economy and community, we are working to revitalize the economy by supporting
startups and business succession. In the crowdfunding business, which is part of our support for startups, we haveorganized a total of about 50 projects since its inception in
September 2018. In addition to actively supporting newchallenges and initiatives in the region, we have provided
business succession support to more than 3,900 customers
and will continue to respond to the diversifying needs ofsuccession and inheritance. In addition, the Iyo Bank Social
Welfare Fund, a public interest incorporated foundation,
continues to provide welfare equipment and scholarships tohelp improve social welfare and develop the next generationof human resources.
We are undertaking initiatives for the realization of sustainable local community through financial and information
services. In light of the current rapid shift toward digitalbrought about by COVID-19, we are focusing on ICT consulting services, such as the introduction of groupware and cloud
tools to improve the productivity and operational efficiency ofboth our customers and the Bank through digitalization. We
will continue to support our customers as they introduce ICT,
as well as hold online seminars and other events to raiseawareness of ICT utilization in the region.
As for initiatives to build a strong management foundation, we are a company with an Audit & Supervisory Committee, so the number of outside directors exceeds one third of
the total number of directors. We have also established asystem to ensure the management transparency and objectivity through the establishment of a Management Deliberation
Committee and an Advisory Board. In July 2020, as a collaborative measure with the TSUBASA Alliance, we helped
establish TSUBASA Alliance Co., Ltd. for the purpose of
consolidating operations and functions common to eachbank. As the first step, we opened the AML (Anti-Money
Laundering) Center in October. Combining the knowledge
and expertise of each bank, the center is working to improve
the systems to combat money laundering in light of international requirements.
With respect to diversity and work style reforms and withthe aim of realizing a society in which a diverse range of
personnel can play an active role, we introduced in April 2020a side-job system to help secure a diverse and talented workforce with knowledge, skills, and personal connections developed outside the Bank. Through investment in gender bonds
issued by the Asian Development Bank, we support theactivities of projects that promote the advancement of women from a financial perspective. In December, the Bank wasawarded three stars in the “L Star” program, for making
excellent efforts to promote the activities of women.
Lastly, for environmental protection, we are promoting
initiatives to reduce the environmental burden through ourbusiness and social contribution activities such as financing
and forestation that contribute to environmental protection,
focusing on solar power generation, biomass power generation, and other renewable energy sources. In February 2021,
we endorsed the recommendations of the Task Force on

6

IYO BANK Annual Report 2021

Climate-related Financial Disclosure (TCFD) to contribute to
the realization of a lower-carbon society while assuming therisks that climate change poses to our customers and theBank. We will strive to enhance our information disclosure
going forward.

Special Benefit Program for Shareholders

We have introduced a special benefit program for shareholders as a way of responding to the daily support of our shareholders and with the aims of making it more appealing to buy
shares in the Bank and ensuring that greater numbers ofpeople hold shares in the Bank.
Under this program, shareholders listed or recorded in the
Shareholder Register who hold no less than 100 shares andless than 1,000 shares as of March 31 each year will receive a
special gift (Imabari towel), and shareholders holding 1,000
shares or more can select one of the following options:“Shareholder Special Time Deposit,” “Ehime Prefecture
Special Product or TSUBASA Alliance Jointly Planned Specialty
Goods,” or “Donation to The Japanese Red Cross Society.”

IR Activities and Ratings

Regarding our efforts to increase management transparency,
due to the COVID-19 impact, we did not hold annual results
briefings for analysts and institutional investors. However, westrove to provide vigorous disclosure through our briefing
materials.
To provide an objective understanding for stockholders,
suppliers, and investors of our creditworthiness by externalrating agencies, the Bank is rated highly, with an “AA” rating
by Japan Credit Rating Agency (JCR), an influential Japanesecredit rating agency, an “A+” rating by Rating and Investment (R&I), and an “A-” rating by Standard & Poor’s (S&P), a
global credit rating agency.

Compliance and Risk Management

With respect to compliance, since June 2020, when companies were obliged to prevent power harassment, we haveestablished Harassment Prevention Regulations to strengthen
our legal compliance system and clearly state our commitment to eradicating various types of harassment.
We have taken measures to sophisticate the risk appetite
framework for business management. Through regular
discussions and monitoring, we aim to ensure balanced,
sustainable growth and soundness. Also, we regularly review
our business continuity structure in order to appropriately
respond to the spread of infectious diseases such as COVID-19, natural disasters such as the Nankai Trough earthquake and heavy rainfall, and cyberattacks.
Amidst the initiatives described above, we received thestrong support of our shareholders and business partners. As
a result of devoting the collective strengths of the Iyo Bank
Group to our business performance, we have achieved thefollowing business results.

Business Performance

In fiscal 2020, ended March 31, 2021, our non-consolidated
performance was as follows: The term-end balance of deposits, including NCDs, increased ¥768.2 billion over the previous
fiscal year-end to ¥6,522.6 billion (US$58,916 million). The
loan balance at the end of the fiscal year rose ¥242.6 billion
over the previous fiscal year-end to ¥4,999.3 billion (US$45,157
million). The balance of securities at the end of the fiscal year
increased ¥182.9 billion over the previous fiscal year-end to¥1,890.5 billion (US$17,076 million). The balance of total
assets at the end of the fiscal year rose ¥741.8 billion over theprevious fiscal year-end to ¥8,506.7 billion (US$76,838 million).
Ordinary revenue decreased ¥1,970 million over theprevious fiscal year-end to ¥104,428 million (US$943 million),
mainly due to a decrease in investment income. Ordinary
expenses increased ¥835 million over the previous fiscal yearto ¥80,651 million (US$728 million), mainly due to an increase in other ordinary expenses caused by an increase in theprovision of reserve for loan losses, despite a decrease ininterest expenses caused by a decline in overseas interest
rates. As a result, ordinary income decreased ¥2,805 million
to ¥23,776 million (US$214 million), while net profit decreased ¥1,823 million to ¥16,679 million (US$150 million).
On consolidated basis, the capital ratio (Basel III standards), which measures bank prudence and soundness, stoodat 14.65%.

IssuesIn addition to the structural socioeconomic changes due toJapan’s shrinking and aging population and the maturing
economy, the Bank is facing irreversible and drastic changes
through digitalization, the COVID-19 pandemic, and the needto respond to deregulation and ESG/SDGs.
We started the Fiscal 2021 Medium-Term Management
Plan in April this year amid this environment. At the outset of
our new plan, we have set our long-term vision to become “acorporate group that continues to create and provide newvalue.” We aim to create and unerringly deliver value neededby the community and our customers, implement thesevalues as an integrated group, and take on new businesschallenges. While further deepening and evolving our DigitalHuman-Digital model, and by adapting to changes in thebusiness environment and working to transform our businessmodel as a group, we will strive to solve the issues facing our
local communities and customers and aim to achieve sustainable growth enhancing our corporate value.
It is our firm belief that the source of the Bank’s development is to work together with and contribute to the community, and to enrich the community both materially and spiritually.
We will continue to fulfill our mission to “create a bright andprosperous future for the region.” In these endeavors, we ask
for the ongoing support of our stockholders.

Kenji Miyoshi, President

IYO BANK Annual Report 2021

7

Our Vision and Plan

Positioning and New Long-Term Vision◆ The new "Long-Term Vision" looking 10 years ahead was established to promptly solve issues in society

and customers and address industry deregulation by further deepening and evolving the DHD model
New Long-Term Vision(Goals for the long-term future)

Corporate group continuing to create and provide new value
Fiscal 2021
Medium-Term
Management Plan

COVID-19, deregulation, etc.
ESG/SDGs

Previous 10-year vision“Leading financial services group in the Setouchi regionin terms of customer satisfaction”
Basis of the DHD model Utilization of Digital technologies and warm response by Humans

Fiscal 2015 Medium-Term
Management Plan

Fiscal 2018 Medium-Term
Management Plan

* To be continued

Fiscal 2021 Medium-Term
Management Plan

(1) Continuing to create and provide
new value•Strengthening consultation capabilities by theentire Group•Improving cooperation with other industries toexpand the business fields(2) Corporate group•Aggressively try business fields having highaffinity with the core business and leading tosolutions for issues in society and customers

Corporate Credo “Creating a bright and prosperous future for the region”“Offering the best service and being worthy ofpeople’s trust””Rendering our best service with gratitude in our hearts”

Future Vision Following the Long-Term Vision• Improvement inCurrent to New MediumTerm Management Plan

cooperation with otherindustries with highaffinity with corebusiness• A bank on your palm
Connecting with bank employees via
video chat

• Bank employees serving as thebank at a customer site

• Counters where no pens areused

Aiming to become a leading
corporate group based on the
Chugoku and Shikoku regions
For bringing “better choice” to each and every customer
Future Vision• House purchasing plan with a• New card loan service thatissues notifications on
insufficient amounts

ATMsmartphone

Creation of new services
and new businesses

Bank Group

Trust

Offices

Deepening and evolving the DHD model= ”DX”
Change in company culture (fixed thinking)Review of existing business and• Recombination of businesses based
reduction in technical debt
on customer needs• More efficient administration• Review and abolition of legacy
systems

through introduction of RPA• Reorganization of branches throughreview of operation structure

8

IYO BANK Annual Report 2021

Improvementin customer
experience
value
(CX)

branchBusinessof otherindustries

Iyo Customer
Individuals
Bank
App

Reduction of administrative work to one-third* Compared to March 2018

Consulting staff 1,500 persons/Tech staff 150 persons
Location free operations(Omnichannel/integration of online and offline channels)Efforts for SDGs

“Iyogin Declaration on SDGs”
Based on our corporate credo, the Bank aims to realize a bright and prosperous local community by contributing to the achievement of the Sustainable Development Goals (SDGs) advocated by the United Nations and working to overcome social and environmental issues in the region including population decline
and an aging population.
1. Local economy and community	We will expand our efforts for promoting growth in local economies and regional development, and contributeto enriching the lifestyles and developing the businesses of our customers.
2. Financial and information services
	We will provide advanced, high-quality, and comprehensive financial and information services, and continue tomaintain the trust and meet the expectations of our customers.
3. Strong management foundation
	We will work to further strengthen and enhance our management foundation, and fulfill our social responsibilities as a regional bank.
4. Diversity and work style reforms
	We will promote diversity and work style reforms, and endeavor to create an organization in which various typesof human resources can actively perform their roles.
5. Environmental protection
	We will actively and continuously work to reduce the environmental burden and participate in activities for environmental conservation, and endeavor to preserve and protect the natural local environment.

<Environmental Protection>
Efforts with Project Finance for Renewable Energy

Expressed support for the TCFD Recommendations
Improving information disclosure to contribute toachieving a decarbonized society, assuming risks of climatechange to customers and the Bank

[Renewable energy]
Solar power generation

14

Biomass generation

4[Corporate Credo/Significance of Existence]“Creating a bright and prosperous future
for the region”[Number of other environmental loans executed]
Iyogin CSR

Environmental
policyIyogin Declaration
on SDGs

Loans relating to the interest subsidy business
implemented by the Ministry of the Environment

9

Arrangement of syndicated loans for investment
funds for green bonds

1

GovernanceSupervision structure of the Board of
Directors concerning climate-related risks
and opportunities tilized an electronic approval system (April 2017)
U
Promoted development of web databases (April 2019)
Digitalized application flows (123 cases)
Introduced “CUBE“ management system for properties
in custody (April 2020)
Reduced collection slips and reception slips (11,000 books / year)

Strategies

Scenario analysis concerning climaterelated migration risks and physical risks
to loans and financial intermediation
operations

Promoting paperless

Disclosure of policies on investment andRiskloans to sectors that have an impact onmanagement
climate change
Benchmarkand targets[Reduction of paper use]

Targets and results of sustainable financeTargets and results of reductions in green
house gas (GHG) emissions of the Bank

Approx. 7 million sheets during the year
approx. 600 forest planted trees

IYO BANK Annual Report 2021

9

<Local Economy and Community><Financial and Information Services>

Business Foundation Support

Iyogin SDGs Advisory Service

Number of business foundation support March 2019 March 2020 March 2021
Business foundation planning support
205
255
367
Of which, start-up loans
93
72
301
(with/without Credit Guarantee Association)
Of which, referrals to government-affiliated financial
43
50
17
institutions and start-up support organizations
Of which, venture companies registered for grants
26
25
24
or investments

ESG/SDGs Related Private Placement Bonds(Millions of Yen)

Crowdfunding
50
45
40
35
30
25
20
15

S tarted operations of “Iyogin SDGs Advisory Service” inDecember 2020
Number of support services provided for preparing ”SDGs
Declaration”
18 cases (As of March 31, 2021)

14,000

Number (Cumulative)

Number by category
46

36

50

Businessfoundation
13

Regional
revitalization
22
Total

28

50 cases

19
March 2019 September 2019 March 2020 September 2020 March 2021

New products
and new services
15

12,00010,000
8,000
6,000

9,120
1,630

0

4,940

3,770

250
2,510

3,440

2,530

3,020

March 2019

March 2020

March 2021

4,050

4,000
2,000

12,3001,580

10,980
1,040
1,910
1,730

“Kaisha-no-Mirai”
SDGs“Chiiki no Mirai”“Manabiya”
Environment<Diversity and Work Style Reforms>
Change in Overtime Work under Labor Standards Act

6.6
hours

3.2
hours

4.2
hours

January to December
2018

January to December
2019

January to December
2020

Change in paid leave utilization rate

65.2%

67.1%

69.6%

January to December
2018

January to December
2019

January to December
2020

Enhancement of Employee Engagement with “wevox” IntroducedT ool for visualizing and analyzing engagement at each officeImproving organizational capacity and business results by implementing the PDCA cycle speedily through meetings, etc. ateach office based on the results<Governance>
Governance System

Countermeasures against Money Laundering and Terrorism Funding
Advisory Board

Management Deliberation Committee

Reportcus Exe(Busines

Deliberation on
the nomination ofand compensation for
Directors, etc.,
and importantmatters regarding
management

Board ofDirectors

isory
Comm
ittee

Consult
Evaluation and advice
on the Bank’s
management strategy
and governancetionv) Direuper
ctors Audit and S

Internal Directors

Independent Outside
Directors

Audit and Supervisory Committee

Strengthening Group GovernanceIntroduced the “Group Chief Officer System” from thisMedium-Term Management Plan for the purpose of further
strengthening the Group’s management control structure

10

IYO BANK Annual Report 2021

<Strict customer management>• Improving the counter reception structure• Introducing “customer risk rating”• Conducting “continuous customer management”<Thorough examination and verification>• Investigating “suspicious transactions”• Conducting “track monitoring” for ship finance• Monitoring overseas remittance by utilizing AI• Investigating foreign companies based on external databases

Building Structures for AML EnhancementT he AML Center was established at TSUBASA
Alliance Co., Ltd. in October 2020. Discussions
toward joint operations are promoted
for more advanced, efficient,and stable AML operations.
DAISHI HOKUETSU BANK,LTD.

THE SHIGA BANK,LTD.
CHUGOKU BANK LTD.

NORTH PACIFIC BANK,LTD.

THE TOHO BANK,LTD.
THE GUNMA BANK,LTD.
THE MUSASHINO BANK,LTD.
THE CHIBA BANK,LTD.

THE IYO BANK,LTD.
BANK OF THE RYUKYUS,LTD.

Head Offices
BranchesCorporate Governance / Compliance / Risk Management

Corporate Governance
Basic Philosophy
Based on our corporate philosophy, to ensure the unshakeable
trust of our stockholders, customers, employees and otherstakeholders we believe it is vital to raise enterprise value andensure a more sound and transparent management system,
while remaining mindful of our social responsibilities as aregional bank. To meet these responsibilities, we will reinforce
and enhance our efforts at corporate governance, which we
consider one of our most important management priorities.
Through corporate governance appropriate to the Bank,
we seek to achieve sustainable growth and enhance enterprise value over the medium to long term. To this end, we
have formulated and publicized our Corporate Governance
Guide Line, which outlines our fundamental perspectives andframeworks on corporate governance.
Internal Control Systems• The Board of Directors’ granting of voting rights to directors
on auditing and the Audit and Supervisory Committee
members that include multiple outside directors is expected
to enhance the auditing and supervisory functions, as wellas corporate governance. At the same time, we believe thisdelegation of authority will contribute to swifter decisionmaking and heightened management efficiency. To achievethese aims, we have adopted the system of a “company
with an Audit and Supervisory Committee.”• The Bank has also separated the management decisionmaking and supervisory functions from business execution,
thereby strengthening the Board of Directors’ decisionmaking function. To further enhance corporate governance, wehave introduced an executive officer system.
• In principle, the Board of Directors meets once a month todecide on important matters stipulated in law and the Articles

Business Executive Functions, Oversight and Internal Controls

Audits/Supervises

Business Execution Directors

Audit and Supervisory Committee
ReportingPresident

ReportingExecutive Committee

Management Planning Council, Budgeting and Integrated Risk
Management Council, Screening Council, Compliance Council

Advisory Board

Compliance Committee
Operational Risk
Administration Committee

Whistleblowing

Directs/
Instruction

Credit Risk
Administration Committee
Head Office,Bank Branches

Dismisses

Board of Directors

Cooperates

Appoints/Dismisses

Internal Audit
Division
Audits InternallyAppoints/
Dismisses

Independent
Auditors(CPAs)

Accounting
Audit/
Internal
controlaudit

Collaborates/
Coordinates

Consult
ReportingManagement Deliberation Committee

General Meeting of Stockholders
Appoints/Dismisses

Cooperates

of Incorporation, as well as to make important decisions
related to management policy and management strategy.
The Chairman, who chairs the Board of Directors, is in asupervisory position and has no business execution authority.
• In principle, the Audit and Supervisory Committee meets atleast once each month. In accordance with the law, Articles
of Incorporation and Audit and Supervisory Committee
Regulations, this committee, together with the Board of
Directors and the Chairman, provides a supervisory function
and also audits the execution of business by directors.
• In principle, the Executive Committee, consisting of the
President, Deputy President, Senior Managing Directors andManaging Directors, meets once a week to discuss important issues affecting all areas of operations, based on thefundamental policies decided upon by the Board of Directors. The Executive Committee comprises four councils,
according to the content of matters to be discussed: theManagement Planning Council, the Budgeting and Integrated Risk Management Council, the Screening Council
and the Compliance Council. The Chairman and standing
members of Audit and Supervisory Committee attend the
Executive Committee, where they provide appropriate
statements and advice.
The Bank established the Management Deliberation
Committee, comprising the Bank’s representative directors
and the Audit and Supervisory Committee members, todeliberate director nominations and compensation andother important matters.
The Management Deliberation Committee, which is
positioned as an advisory body to the Board of Directors, iscomposed of a majority of members who are independent
outside directors.
• In an effort to develop and enhance a structure for legal
observance and risk management, we have established theCompliance Committee (secretariat: the Compliance Division; held monthly) chaired by the director in charge of theCompliance Division, as well as the Operational Risk Administration Committee (secretariat: the Risk Management
Division; held at least quarterly) and the Credit Risk Management Committee (secretariat: the Risk Management
Division; held at least quarterly), both of which are chairedby the director in charge of the Risk Management Division.
• The Bank holds a semi-annual meeting of the Advisory
Board (secretariat: the General Planning Division) chaired by
the president. To ensure the management transparency andobjectivity of the Group, further strengthen the management base and contribute to the local community, we are
introducing external perspectives regarding the Group’s
management strategies and governance.
• The Group Chief Officer System* has been introduced, andunder the overall supervision of the Group CEO, Group
Chief Officers are assigned as persons in charge of key areas
in order to promote unified and strategic initiatives acrossthe Group, thereby building an integrated Group management control structure.

IYO BANK Annual Report 2021

11

Risk Management* Currently, the following Group Chief Officers have been
assigned.
- Group Chief Executive Officer (Group CEO)- Group Chief Operating Officer (Group COO)
- Group Chief Strategy Officer (Group CSO)
- Group Chief Information Officer (Group CIO)
- Group Chief Risk Officer (Group CRO)
- Group Chief Business Officer (Group CBO)

Compliance
As an institution with a public profile and social responsibilities,
the Bank regards a good compliance record as indispensable fordeepening the trust and support of our customers, shareholders
and the communities we serve. We ensure not only that all our
employees observe all laws, ordinances and regulations in theirduties, but also meet the highest ethical standards.
Compliance Organizations
We established a Compliance Council chaired by the President. This committee deliberates matters relating to compliance, and seeks to foster a corporate culture in which
compliance-related information is shared by all employees
from the branch level to top management.
At all head office and branch business departments, wehave appointed compliance officers, who assess progress incompliance-related matters and organize training and awareness-raising activities such as study groups.
The Compliance Division, working closely with the Compliance Committee and compliance officers, integrates collection and management of compliance-related information.

Risk Management Framework

Risk
Categories

Executive Committee
Management Planning Council(CS Enhancement Committee)(Secretariat: Corporate & Retail Banking Planning Division)

Credit Risk
Administration Committee

Compliance Council(Secretariat: Compliance Division)Operational Risk
Administration Committee

Compliance Committee

Operational risk
Marketrisk

Liquidity
risk

Risk Management Division

Creditrisk

Risk Management Division

RiskManagement
Division
CreditRelated
Divisions

System
risk

Legal
risk

Systems
Operations
ComplianceManagement Development
Division
Division
Division

Human-error
risk

Fixed
asset risk

Human
Resources
Division

GeneralAffairs
Division

Bank Branches, Head Office, and Group Companies

12

Audit and Supervisory Committee

Budgeting and Integrated Risk Management Council(Secretariat: Risk Management Division)

Administrativerisk

Divisions
responsible
for eachtype of risk
management

Risk Management Framework
The Bank’s risk management framework has four main pillars:
1. Legal observance under the Compliance Committee
2. Managing revenue-generating risk assets under the ALM
Committee
3. The Credit Risk Administration Committee undertakes
risk management that focuses on curbing credit risk
4. Management of operational risk to minimize administrative and system risk, under the Operational Risk Administration Committee
The Bank’s risk exposure is assessed by the ALM committee by quantifying market and credit risk, and optimal fundmanagement and procurement structures are put in place toassure stable earnings over the medium and long term.

Board of Directors

Management Planning Council(Secretariat: General Planning Division)

Emergency Office

Basic Philosophy
In its daily business operations, a bank is exposed to credit
risks, market risks and other risks. These risks are growing indiversity and complexity as deregulation progresses and thebusiness of banking grows ever more complex. Therefore,
finding ways of appropriately managing risk has become avital challenge for a bank.
On the other hand, for a bank, risk-taking is essential for
generation of revenue. Only by assuming a reasonable levelof risk, it is possible to ensure acceptable earnings growth.
Accordingly, the bank sets reasonable profit targets afterfactoring in all conceivable risks, and takes every precaution
to manage risk Iyo Bank’s management treats risk management as a priority issue.
Each fiscal year, the Board of Directors compiles risk
management policies, and, based on these policies, takes
steps to strengthen risk management and improve the qualityof risk management.

IYO BANK Annual Report 2021

Reputational
risk

Compliance

Customer
Satisfaction
Enhancement
OfficeCompliance
DivisionInternal
Audit
Division

Additionally, the Credit Risk Administration Committee
works to manage credit risk, design and evaluate frameworks
for the Internal Rating System, and resolve issues concerning
Basel Regulations.
At the same time, the Operational Risk Administration
Committee is taking measures to refine operational risk
management through organization-wide discussion andmonitoring regarding important topics arising from reviews ofactual operational risk. With regard to administrative risk,
system risk, legal risk, human-error risk, and fixed asset risk,
which together constitute operational risk, organization-wide
responses include establishment of offices for each categoryof risk, and rigorous risk management. At the same time, theRisk Management Division is responsible for coordination ofrisk management carried out by the departments in charge ofeach category of risk.
In addition, the Group CRO is assigned to supervise risk
management of the Group as a whole.

Health and Productivity Management
Initiatives
Based on the recognition that it is the employees who support the sustainable growth of any company, the Director of
Human Resources, appointed as the person in charge ofhealth management, has made a Declaration of Health andProductivity Management. In addition to the promotion ofwork-life balance and work style reforms, we are actively
developing measures to maintain and improve employee
health. These measures include support for raising employee
awareness of health and the promotion of mental healthcare. In 2019, it became compulsory for members of thecorporate health insurance scheme aged 40 and above toundergo a comprehensive medical checkup. In April 2020, as
a population approach to health management needs to raise
employees’ health awareness, we started lending wearable
devices to all executives and employees wishing to use themto visualize the number of steps they take, heart rate, calories
consumed, sleep, and other lifestyle habits. Additionally, thehealth management system we introduced as a measure tostrengthen our high-risk approach allows employees to verify
their health check results and consult with public healthnurses at any time using their smartphones.
We are also working to maintain and improve the healthof people in the community by offering business loan products for clients who are striving to promote good healthamong their employees.

IYO BANK Annual Report 2021

13

Financial Section
Financial Highlights
The Iyo Bank, Ltd. and its Consolidated Subsidiaries

Millions of yen

2021

2020

2019

2018

2017

¥1,897,768
4,975,984
8,550,739¥1,713,574
4,733,091
7,795,554¥1,574,849
4,527,810
7,165,655¥1,815,554
4,269,697
7,096,633¥1,735,981
4,021,442
6,849,283

6,495,645
7,809,498

5,728,742
7,123,706

5,688,021
6,517,327

5,525,398
6,450,329

5,437,276
6,240,221

Total income
Total expenses
Income before income taxes
Profit attributable to owners of parent¥ 124,852
99,052
25,79918,088¥ 126,545
98,15328,32918,922¥ 126,291
98,16328,12918,527¥ 121,002
85,20935,791
23,639¥ 117,356
84,22833,127
21,797

Net cash provided by operating activities
Net cash provided by investing activities
Net cash provided by financing activities
Cash and cash equivalents

778,734(69,750)(13,314)
1,413,563

49,279(134,032)(5,741)
717,887(150,925)
237,490(4,346)808,389

3,870(57,093)(4,106)726,157

226,523
6,797(7,401)
783,504

Years ended March 31:

At Year-End:
AssetsSecurities
Loans and bills discounted
Total assets

Liabilities
Deposits
Total liabilities

For the Year:Yen

Per Share Data:¥

Basic net income
Stockholders’ equity

57.12
2,313.28¥

59.77
2,052.46¥

58.54
1,975.54¥

74.73
1,969.99¥

68.93
1,864.28

Capital ratio (BIS standards) (%)
Return on equity (ROE) (%)
Price earnings ratio (PER) (Times)

14.65
2.50
11.62

14.85
2.95
9.15

14.38
2.99
10.01

14.31
3.83
10.71

14.58
3.77
10.86

Number of employee

3,071

3,109

3,147

3,122

3,082

Note: Japanese yen amounts, except net income per share, are presented in millions of yen and are rounded down to the nearest million.

Ratings [JCR]

Evaluation gain on securities(Non-consolidated)

Capital ratio(BIS standards)(Billions of yen)

(Yen)

400

Iyo bank

29,17830,000

(%)

16
14.58

AA-

24,00014

18,00012160

12,000

10

BBB-

80

6,000

8

Iyo bank has obtained one of the best ratings
among Japanese banks including mega-banks
by Japan Credit Rating Agency, Ltd. (JCR).

(March 31) 2017

320

A+
A

307.8

18,90918,917

240
218.4

ABBB+

21,454 21,205

234.9

227.6

234.4
234.9

14.85
14.31

14.38

14.65

BBB

14

IYO BANK Annual Report 2021

0

2018 2019 2020

2021

0

6

(March 31) 20172018 2019 2020 2021

Management Discussion and Analysis of Operations
 Business Environment
Due to the impact of COVID-19, the situation of theJapanese economy in fiscal 2020, ended March 31, 2021,
was generally severe. Consumer spending was down,
manufacturing activities stagnated, corporate earnings
fell, and the employment situation deteriorated. At the
moment, the resurgence of COVID-19 is increasing
downward pressure on the economy, hampering the movetowards recovery. Looking ahead, although there is a highdegree of uncertainty, as we recover from the effects ofthe pandemic, the economy is expected to improve, albeit
gradually, supported by renewed foreign demand and thegovernment’s economic stimulus package.
Like Japan as a whole, the economy of Ehime Prefecture
as a whole is expected to recover gradually, although there
is still a sense of stagnation due to a recent resurgence in
COVID-19 cases.

Overview of Business Results, etc.
Consolidated ordinary revenue decreased ¥1,689 million
over the previous fiscal year to ¥124,817 million (US$1,127
million), mainly due to a decrease of gain on funds
management. On the other hand, consolidated ordinary
expense increased ¥1,551 million over the previous fiscal
year to ¥98,644 million (US$891 million), mainly due to anincrease in other expenses as provision of reserve for loan
losses rose.
As a result, consolidated ordinary income decreased¥3,241 million over the previous fiscal year to ¥26,172
million (US$236 million). Profit attributable to owners ofparent decreased ¥834 million over the previous fiscal yearto ¥18,088 million (US$163 million).
On a non-consolidated basis, core business gross profit
increased ¥3,827 million over the previous fiscal year to¥80,595 million (US$727 million), mainly due to an increase
in interest and dividend income for securities. Core businessProfit Attributable to
Owners of Parent(Billions of yen)

Net Income per Share
(Yen)

32

100

24

75

net income increased ¥4,099 million over the previous fiscal
year to ¥30,934 million (US$279 million) due to an increasein core business gross profit and a decrease in expenses, etc.
Ordinary income decreased ¥2,805 million over the previous
fiscal year to ¥23,776 million (US$214 million), due to anincrease in credit costs as a preventive provision for futureloan losses by COVID-19 was recorded.
As a result, net income decreased ¥1,823 million overthe previous fiscal year to ¥16,679 million (US$150 million).
 Segment Information

The Iyo Bank Group consists of the Iyo Bank and 16 consolidated
subsidiaries. The Group’s operations center on commercial
banking services, and also cover leasing and other financial
services (Note 1-1).
Banking Operations
Ordinary revenue was ¥105,584 million (US$953 million),
due to an ordinary revenue from customers of ¥104,986
million and ordinary revenue from intersegment transactionsof ¥598 million. Segment profit decreased ¥3,437 million
over the previous fiscal year to ¥25,093 million (US$226
million).
Leasing Operations
Ordinary revenue was ¥17,117 million (US$154 million), due
to an ordinary revenue from customers of ¥16,692 million
and ordinary revenue from intersegment transactions of¥424 million. Segment profit decreased ¥126 million overthe previous fiscal year to ¥583 million (US$5.2 million).
Other Businesses
Ordinary revenue was ¥5,107 million (US$46 million), due toan ordinary revenue from customers of ¥3,138 million andordinary revenue from intersegment transactions of ¥1,968
million. Segment profit increased ¥365 million over theLoans andBills Discounted(Billions of yen)

5,000

Deposits

4,975.9(Billions of yen)

7,000

3,750

5,250

57.12

18.0
16

50

2,500

3,500

8

25

1,250

1,750

0

(FY) 2017 2018 2019 2020 2021

6,495.60(FY) 2017 2018 2019 2020 2021

0

(March 31) 2017 2018 2019 2020 2021

0

(March 31) 2017 2018 2019 2020 2021

IYO BANK Annual Report 2021

15

previous fiscal year to ¥489 million (US$4.4 million).
The term-end balance of deposits including NCDs,
increased ¥766.9 billion over the previous fiscal year-end to¥6,495.6 billion (US$58,672 million).
The term-end balance of loans increased ¥242.8
billion over the previous fiscal year-end to ¥4,975.9 billion(US$44,945 million).
The balance of securities at the end of the fiscal year

increased ¥184.1 billion from the previous fiscal year-end to¥1,897.7 billion (US$17,141 million).
The capital ratio (Basel III standards), which measuresbank prudence and soundness, stood at 14.65%.

Loans by Industry
Millions of yen

2021
Loans and bills
discounted outstanding

Share (%)

2020
Loans and bills
discounted outstanding¥4,786,235
660,296

Share (%)

100.0013.80¥4,584,038
650,562100.0014.19

Agricultural and forestry

2,989

Fishing

8,879

0.06

3,115

0.07

0.19

11,918Mining, quarrying and gravel extraction

0.26

6,792

0.14

7,131

0.16

Construction

135,172

2.82

116,088

2.53

Electricity, gas and water utilities, sewage

176,739

3.69

154,410

3.37

Communications

17,791

0.37

18,9400.42

Transportation and postal service

859,780

17.96

769,705

16.79

Wholesale and retail518,160

10.83

504,305

11.00

Finance and insurance

155,990

3.26

159,666

3.48

Real estate and rental

530,296

11.08

514,007

11.21

Service

496,773

10.38

467,63710.20

212,067
1,004,507

4.43
20.99

230,048976,500

5.02
21.30

189,749—

100.00—149,053—

100.00——189,749¥4,975,984—
100.00——149,053¥4,733,091—
100.00—Years ended March 31:

Domestic total (excluding loans booked offshore)
Manufacturing

Local authorities
OthersOverseas total (including loans booked offshore)
Governments
Financial institutions
Others
Total

Total Assets

Return on Equity(Billions of yen)(%)

10,0004.0

8,550.7
7,500

3.0

5,000

2.0

2,500

1.0

0

(March 31) 2017 2018 2019 2020 2021

16

IYO BANK Annual Report 2021

0.0

2.50

(March 31) 2017 2018 2019 2020 2021

 Financial Position and Business Results
Consolidated gross profit
Consolidated gross profit increased ¥4,295 million over theprevious consolidated fiscal year to ¥89,191 million (US$805
million), mainly as a result of two following factors.
Interest and dividend income increased ¥5,240 million
over the previous consolidated fiscal year to ¥71,615
million (US$646 million), mainly due to an increase in loan
management gain as loans grew, and increased gain on
securities management and fund cancellation. Fees andcommissions decreased ¥1,214 million over the previous
consolidated fiscal year to ¥9,001 million (US$81 million),
mainly due to restricted face to face sales under COVID-19.

Loans and bills discounted
With corporate and housing loans mainly to individuals bothincreasing steadily, loans and bills discounted increased¥242.8 billion over the previous consolidated fiscal year-end,to ¥4,975.9 billion (US$44,945 million).

Operating costs
Operating expenses increased ¥256 million over the previous
consolidated fiscal year to ¥51,909 million (US$468 million)
due to an increase in personnel expenses.

Securities
The balance of securities increased ¥184.1 billion from theprevious fiscal year to ¥1,897.7 billion (US$17,141 million)
mainly due to an increase in other securities by acquisitionsof foreign currency securities.

Credit costs
Credit costs increased ¥5,974 million over the previous
consolidated fiscal year to ¥13,353 million (US$120 million),as a preventive provision for future loan losses by COVID-19
was recorded.
Gain (loss) related to stock, etc.
Net gains related to stocks decreased ¥359 million over theprevious consolidated fiscal year to ¥1,088 million (US$9.8
million) due to losses on the sale of ETF (exchange-tradedfund).
Extraordinary income (losses)
Extraordinary losses decreased by ¥649 million over theprevious consolidated fiscal year to (¥372 million) (US$3.3
million) due to a decrease of impairment losses.

Risk management loans
Risk management loans decreased ¥4.8 billion over theprevious consolidated fiscal year-end, to ¥74.7 billion(US$674 million).
Risk management loans remained at the low level of
1.50% as a proportion of the outstanding balance of loans
and bills discounted.

 Cash Flow Analysis
Consolidated Cash Flows
Cash and cash equivalents at the end of the term increased¥695.6 billion over the previous consolidated fiscal year to¥1,413.5 billion (US$12,767 million).
Cash flows from operating activities were ¥778.7 billion(US$7,033 million), mainly due to an increase in deposits anddecrease in call loans.
Cash flows from investing activities were (¥69,750
million) (US$630 million), mainly due to an acquisition of
securities.
Cash flows from financing activities were (¥13,314
million) (US$120 million), mainly due to payments fromchanges in ownership interests in subsidiaries that do not
result in change in scope of consolidation.

Deposits
With deposits held by individuals and corporations bothincreasing steadily, the balance of deposits, including NCDs,
increased ¥766.9 billion over the previous consolidated fiscal
year-end, to ¥6,495.6 billion (US$58,672 million).

IYO BANK Annual Report 202117

Consolidated Balance SheetThe Iyo Bank, Ltd. and its Consolidated Subsidiaries
March 31, 2021

Thousands of U.S.
dollars (Note 1-1)

Millions of yen

2021

2021

¥1,415,522
—
6,834
649
6,427
1,897,768
4,975,984(37,043)
8,596
31,680100,097
72,991
9,035
33,201
195
28,796¥8,550,739¥ 719,086
355,563
8,173
727
7,074
1,713,574
4,733,091(31,374)
10,74133,803
119,495
72,2298,048
18,734
199
26,382¥7,795,554$12,785,854—
61,728
5,862
58,052
17,141,793
44,946,111(334,594)
77,644
286,153
904,136
659,299
81,609299,891
1,761
260,102$77,235,471

LIABILITIES AND NET ASSETS
Liabilities
Deposits (Note 2-5)
Call money and bills soldPayables under repurchase agreements (Note 2-5)
Payables under securities lending transactions (Note 2-5)
Borrowed money (Note 2-5)
Foreign exchange
Borrowed money from trust account
Other liabilities
Accrued employees’ bonuses
Net defined benefit liability
Reserve for losses on repayment of dormant bank accounts
Reserve for contingent losses
Reverse for share-based payments
Reserve under the special laws
Deferred tax liabilities
Deferred taxes on revaluation excess (Note 2-7)
Acceptances and guarantees
Total liabilities¥6,495,645
61,624
199,289
91,604
743,645266
576,058
1,785
11,326
1,652
703
289
3
87,228
9,573
28,796
7,809,498¥5,728,742
217,618
30,357
198,436
770,378295
28
64,935
1,649
12,487
2,393
591
192
2
59,577
9,637
26,382
7,123,706$58,672,613
556,625
1,800,099
827,4226,717,053
2,402
45
687,002
16,123102,303
14,921
6,349
2,610
27
787,896
86,469260,10270,540,131

Net assets
Common stock
Authorized — 600,000,000 shares
Issued — 323,775,366 shares
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Net unrealized holding gains (losses) on securities
Net deferred gains (losses) on derivatives under hedge accounting
Land revaluation excess (Note 2-7)
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Stock acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

20,94820,352446,871(5,045)483,127
222,338(374)
19,1788,279
249,421273
8,418
741,240¥8,550,739

20,948
14,578433,082(5,131)
463,478
166,775
792
19,315(650)
186,233
343
21,792
671,848¥7,795,554

189,215
183,831
4,036,410(45,569)
4,363,896
2,008,291(3,378)173,227
74,7802,252,922
2,465
76,036
6,695,330$77,235,471

See Notes to Consolidated Financial Statements.

18

2020

ASSETSCash and due from banks
Receivables under resale agreements (Note 2-5)
Monetary claims purchased
Trading account securities
Money held in trust
Securities (Notes 2-1, 2-5 and 2-9)
Loans and bills discounted (Notes 2-3, 2-4, 2-5 and 2-6)
Reserve for loan losses
Foreign exchange (Note 2-4)
Lease receivables and investment assets
Other assets (Note 2-5)
Tangible fixed assets (Note 2-8)
Intangible fixed assets
Net defined benefit asset
Deferred tax assets
Customers’ liabilities for acceptances and guarantees
Total assets

IYO BANK Annual Report 2021

Consolidated Statement of Income
The Iyo Bank, Ltd. and its Consolidated Subsidiaries
For the year ended March 31, 2021

Thousands of U.S.
dollars (Note 1-1)

Millions of yen

INCOMEInterest and dividend income:Interest on loans and discounts
Interest and dividends on securities
Interest on receivables under resale agreements
Other interest income
Fees and commissions
Other operating income
Other income
Total income
EXPENSESInterest expense:
Interest on deposits
Interest on borrowings and rediscounts
Interest on payables under repurchase agreements
Interest on payables under securities lending transactions
Other interest expense
Fees and commissions
Other operating expenses
General and administrative expenses (Note 3-1)
Other expenses (Notes 3-2 and 3-3)
Total expenses
Income before income taxes
Income taxes
Current
Deferred
Total taxes
ProfitProfit attributable to noncontrolling interests
Profit attributable to owners of parent

2021

2020

¥ 49,572
25,530(160)
1,049
14,321
29,882
4,655
124,852¥ 54,492
23,594(6)
1,522
15,40625,344
6,192
126,545$ 447,764
230,602(1,445)9,475
129,355
269,91242,046
1,127,739

1,722
974
187
12
1,479
5,319
21,30851,90916,13899,052
25,799

4,416
1,699
716
1,864
4,529
5,190
17,03851,653
11,044
98,15328,392

15,554
8,797
1,689
108
13,35948,044
192,466
468,873
145,768
894,697
233,032

8,845(1,295)
7,549
18,250162¥ 18,088

7,866
233
8,099
20,292
1,370¥ 18,922

79,893(11,697)
68,187
164,8451,463$ 163,381

Per share of common stock (yen and U.S. dollars):
Basic net income
Diluted net income
Dividends

2021

Yen

¥57.12
57.05
14.00

U.S. dollars (Note 1-1)

¥59.77
59.69
14.00

$0.51
0.51
0.12

See Notes to Consolidated Financial Statements.

Consolidated Statement of Comprehensive Income
The Iyo Bank, Ltd. and its Consolidated Subsidiaries
For the year ended March 31, 2021

Thousands of U.S.
dollars (Note 1-1)

Millions of yen

ProfitOther comprehensive income (Note 4-1)
Net unrealized holding gains (losses) on securities
Net deferred gains (losses) on derivatives under hedge accounting
Remeasurements of defined benefit plans
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Noncontrolling interests

2021

2020

2021

¥18,250
64,42856,666(1,167)
8,929¥82,678¥20,292
8,957
8,048
2,338
(1,429)¥29,249$164,845
581,952
511,841(10,541)
80,652$746,797¥81,4131,265¥25,9103,339$735,371
11,426

See Notes to Consolidated Financial Statements.

IYO BANK Annual Report 2021

19

Consolidated Statement of Changes in Net Assets
The Iyo Bank, Ltd. and its Consolidated Subsidiaries
For the year ended March 31, 2021

Millions of yen
Stockholders’ equity

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation excess
Increase (decrease) in equity resulting
from the acquisition of shares of aconsolidated subsidiary
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Commonstock

CapitalsurplusRetainedearnings

Treasurystock¥20,948¥14,578¥433,082¥(5,131)(4,436)18,088
(0)
86

11
137
5,761

Total
stockholders’equity¥463,478(4,436)18,088
(0)
98
137
5,761

—

5,773

13,78985

19,648¥20,948¥20,352¥446,871¥(5,045)¥483,127

Thousands of U.S. dollars (Note 1-1)
Stockholders’ equity

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation excess
Increase (decrease) in equity resulting
from the acquisition of shares of aconsolidated subsidiary
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Retainedearnings

Treasury
stock

Total
stockholders’equityCommonstock

Capitalsurplus$189,215$131,677 $3,911,859$(46,346) $4,186,414(40,068)
163,381(40,068)
163,381
(0)
885
1,237

(0)
776

99
1,237
52,036—$189,215

52,14552,036

124,550$183,831 $4,036,410

767

177,472$(45,569) $4,363,896
Millions of yen

Total other comprehensive income

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation excess
Increase (decrease) in equity resulting
from the acquisition of shares of aconsolidated subsidiary
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

20

IYO BANK Annual Report 2021

Net
unrealized
holding gains(losses)
on securities¥166,775

Net deferredgains (losses)
on derivatives
under hedge
accounting

¥

792

Land
revaluation
excess¥19,315

Remeasure- Total accumuments oflated otherdefinedcomprehenbenefit plans sive income¥   (650)¥186,233

Stockacquisitionrights

Noncontrollinginterests

Total net
assets¥343¥ 21,792¥671,848(4,436)18,088(0)
98
137(5,761)—

55,563(1,167)

(137)

8,929

63,187(69)(7,612)55,50555,563(1,167)

(137)

8,929

63,187(69)(13,374)

69,392¥222,338¥ (374)¥19,178¥8,279¥249,421¥273¥ 8,418¥741,240

Thousands of U.S. dollars (Note 1-1)
Total other comprehensive income

For the year ended March 31, 2021

Net
unrealized
holding gains(losses)
on securities

Balance at the beginning of
the accounting period$1,506,413
Changes during the accounting period
Dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation excess
Increase (decrease) in equity resulting
from the acquisition of shares of aconsolidated subsidiary
Changes in items other thanstockholders’ equity, net
501,878
Total changes during
the accounting period
501,878
Balance at the endof the accounting period$2,008,291

Net deferredgains (losses)
on derivatives
under hedge
accountingLandrevaluation
excessRemeasure- Total accumuments oflated otherdefinedcomprehenbenefit plans sive income

Stockacquisitionrights$ 7,153$174,464$ (5,871) $1,682,169$3,098

Noncontrollinginterests

Total net
assets$ 196,838 $6,068,539(40,068)
163,381
(0)
885
1,237
(52,036)—(10,541)(1,237)80,652570,743(623)(68,756)

501,354(10,541)(1,237)80,652570,743(623)(120,802)

626,790$ (3,378)$173,227$74,780 $2,252,922$2,465$ 76,036 $6,695,330

Millions of yen
Stockholders’ equity

For the year ended March 31, 2020

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation excess
Increase (decrease) in equity resulting
from the acquisition of shares of aconsolidated subsidiary
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Commonstock

CapitalsurplusRetainedearnings

Treasurystock¥20,948¥11,604¥418,320¥(5,189)(4,435)18,922
(0)
58

8
274
2,966

Total
stockholders’equity¥445,684(4,435)18,922
(0)
66
274
2,966

—

2,974

14,76157

17,793¥20,948¥14,578¥433,082¥(5,131)¥463,478

Millions of yen
Total other comprehensive income

For the year ended March 31, 2020

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Profit attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stockReversal of land revaluation excess
Increase (decrease) in equity resulting
from the acquisition of shares of aconsolidated subsidiary
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting periodNet
unrealized
holding gains(losses)
on securities

Net deferredgains (losses)
on derivatives
under hedge
accountingLandrevaluation
excess¥160,696¥(1,545)¥19,590

Remeasure- Total accumuments oflated otherdefinedcomprehenbenefit plans sive income¥

779¥179,519

Stockacquisitionrights

Noncontrollinginterests

Total net
assets¥397¥22,725¥648,327(4,435)18,922(0)
66
274(2,966)

—

6,078

2,338

(274)

(1,429)

6,713

(54)

2,033

8,693

6,078

2,338

(274)

(1,429)

6,713

(54)

(932)

23,520792¥19,315¥ (650)¥186,233¥343¥21,792¥671,848¥166,775¥

IYO BANK Annual Report 2021

21

Consolidated Statement of Cash Flows
The Iyo Bank, Ltd. and its Consolidated Subsidiaries
For the year ended March 31, 2021

Thousands of U.S.
dollars (Note 1-1)

Millions of yen

Cash flows from operating activities
Income before income taxes
Depreciation
Impairment losses
Increase (decrease) in reserve for loan losses
Increase (decrease) in accrued employees’ bonuses
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Increase (decrease) in reserve for losses on repayment of dormant bank accounts
Increase (decrease) in reserve for contingent losses
Increase (decrease) in reserve for share-based payments
Increase (decrease) in reserve under special laws
Interest and dividend income
Interest expense
Securities losses (gains), net
Money in trust losses (gains), net
Foreign exchange losses (gains), net
Losses (gains) on disposal of tangible fixed assets, net
Net changes in loans and bills discounted
Net changes in deposits
Net changes in borrowed money (excluding subordinated borrowings)
Net changes in due from banks
Net changes in call loans
Net changes in call money
Net changes in payables under securities lending transactions
Net changes in foreign exchange assets
Net changes in foreign exchange liabilities
Net changes in lease receivables and investment assets
Net increase (decrease) in borrowed money from trust accountInterest income received
Interest expense paid
Other
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchases of securities
Proceeds from sales of securities
Proceeds from maturities of securities
Increase in money held in trust
Decrease in money held in trust
Purchases of tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchases of intangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from share issuance to noncontrolling stockholders
Repayments to noncontrolling shareholders
Cash dividends paid
Cash dividends paid to noncontrolling stockholders
Purchases of treasury stock
Proceeds from sales of treasury stock
Payments from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation
Net cash provided by (used in) financing activities
Foreign currency translation adjustments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at the end of year (Note 6-1)
See Notes to Consolidated Financial Statements.

22

IYO BANK Annual Report 2021

2021

2020

2021

¥

25,799
5,089
200
5,668
136
(14,467)(1,160)
(741)
111
97
0
(75,992)
4,376(3,604)(14)(9,498)171(242,893)
766,902(26,732)(759)
356,890
12,938(106,832)
2,144
(29)
2,123
(23)
74,857(5,171)
16,990786,579(7,845)
778,734¥ 28,392
4,888
931
3,471
(10)
(1,234)
205
(908)
75
105
0
(79,601)
13,226(3,469)
(505)
5,606
89
(205,280)
40,721
404,52179(352,831)
19,841
121,468(3,576)46(2,360)(2)
79,013(13,638)(2,920)56,345(7,066)49,279(864,892)
594,326
206,516(3,073)
3,516(2,849)154(3,448)(69,750)(528,275)
258,254
141,891(438)—(2,393)90(3,160)(134,032)(7,812,230)
5,368,313
1,865,378(27,757)
31,758(25,733)
1,391(31,144)(630,024)52(3)(4,436)
(5)
(0)
0

13
—
(4,435)
(5)
(0)
0

469
(27)
(40,068)
(45)
(0)
0

(8,921)(13,314)(1,313)(5,741)(80,579)(120,260)6
695,675
717,887¥1,413,563(6)(90,501)
808,389¥ 717,887

54
6,283,759
6,484,391$12,768,160$

233,032
45,966
1,806
51,1961,228(130,674)(10,477)(6,693)1,002
876
0(686,405)
39,526(32,553)(126)(85,791)
1,544(2,193,957)
6,927,124(241,459)(6,855)3,223,647
116,863(964,971)
19,365(261)
19,176(207)
676,153(46,707)
153,464
7,104,859(70,860)
7,033,998

Notes to Consolidated Financial Statements
The Iyo Bank, Ltd. and Its Consolidated Subsidiaries
For the year ended March 31, 2021

1-1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL
STATEMENTS
The accompanying consolidated financial statements have been
prepared in accordance with the provisions set forth in the Financial
Instruments and Exchange Act and its related accounting regulations
and in conformity with accounting principles generally accepted inJapan (“Japanese GAAP”), which are different in certain respects as
to application and disclosure requirements from International Financial
Reporting Standards.
The accompanying consolidated financial statements havebeen restructured and translated into English with certain expandeddisclosures from the consolidated financial statements of The Iyo Bank,
Ltd. (the “Bank”) prepared in accordance with Japanese GAAP and filedwith the appropriate Local Finance Bureau of the Ministry of Financeas required by the Financial Instruments and Exchange Act. Some
supplementary information included in the statutory Japanese language
consolidated financial statements, but not required for fair presentation,
is not presented in the accompanying consolidated financial statements.
Japanese yen amounts are rounded down to the nearest million.
Translations of the Japanese yen amounts into U.S. dollar amounts were
included solely for the convenience of readers outside Japan, using theprevailing exchange rate at March 31, 2021, which was ¥110.71 to
U.S. $1.00. The translations should not be construed as representations
that the Japanese yen amounts have been, could have been or couldin the future be converted into U.S. dollars at this or any other rate ofexchange.
Under Japanese laws and regulations, including the Companies Act(the “Act”), the entire amount paid for new shares is required to be
designated as common stock. However, a company may, by a resolutionof the Board of Directors, designate an amount not exceeding one halfof the price of the new shares as additional paid-in capital, which isincluded in capital surplus.
Under the Act and the Banking Law, in cases in which a dividend
distribution of surplus is made, the smaller of an amount equal to 20%of the dividend or the excess, if any, of 100% of common stock over
the total of additional paid-in capital and legal earnings reserve must
be set aside as additional paid-in capital or legal earnings reserve. Legalearnings reserve is included in retained earnings in the accompanying
consolidated balance sheets.
Under the Act, legal earnings reserve and additional paid-in capitalcan be used to eliminate or reduce a deficit or can be capitalized by aresolution of the stockholders’ meeting. Additional paid-in capital andlegal earnings reserve may not be distributed as dividends. Under the
Act and the Banking Law, however, by resolution of the stockholders’meeting, all additional paid-in capital and all legal earnings reserve
may be transferred to other capital surplus and retained earnings,
respectively, which are potentially available for dividends.
The maximum amount that the Bank can distribute as dividends is
calculated based on the unconsolidated financial statements of the Bankin accordance with Japanese laws and regulations.
(Basis of Presenting Consolidated Financial Statements)
1 Scope of consolidation(1) Principles of consolidation
The consolidated financial statements include the accounts of the Bankand the following 16 consolidated subsidiaries.
• The Iyogin Credit Guaranty Company Limited• The Iyogin Business Service Company Limited• Iyogin Capital Company Limited• Iyogin Venture Fund Corporation Limited IV• Iyogin Venture Fund Corporation Limited V• Iyogin Venture Fund Corporation Limited VI• Iyo Evergreen Sixtiary Industrialization Support Fund Investment
Business Limited Partnership• Iyo Evergreen Agriculture Support Fund Investment Business Limited
Partnership• Iyo Evergreen Agriculture Support Fund II Investment Business Limited
Partnership• Iyo Evergreen Business Succession Support Fund Investment Business
Limited Partnership• Iyogin Regional Economy Research Center, Inc.
• Iyogin DC Card Co., Ltd.
• Iyogin Challenge & Smile Co., Ltd.
• Iyogin Leasing Company Limited• Iyogin Computer Service Company Limited• Shikoku Alliance Securities Co., Ltd.
(2) The consolidated financial statements exclude the following
subsidiary.
• Iyogin-Ehime University Originated Venture Support Fund Investment
Business Limited Partnership• Iyo Evergreen Business Succession Support Fund II Investment Business
Limited Partnership
Iyogin-Ehime University Originated Venture Support Fund Investment
Business Limited Partnership and Iyo Evergreen Business Succession
Support Fund II Investment Business Limited Partnership are excluded
from the scope of consolidation because its assets, ordinary income,net income, retained earnings and accumulated other comprehensive
income are immaterial to the consolidated financial statements.
No unconsolidated subsidiary is accounted for by the equity method.
Iyogin-Ehime University Originated Venture Support Fund Investment
Business Limited Partnership is excluded from the scope of the equity
method because its net income and retained earnings are immaterial tothe consolidated financial statements.

2 Affiliated companies not accounted for by the equity method
The consolidated financial statements exclude the following affiliatedcompanies.
• Iyogin REVIC Investments Company Limited• Shikoku Alliance Capital Co., Ltd•Ozu Town Creation Fund
•Shikoku Brand Co., Ltd.
Iyogin REVIC Investments Company Limited, Shikoku Alliance CapitalCo., Ltd, Ozu Town Creation Fund and Shikoku Brand Co., Ltd. are
excluded from the scope of the equity method because their net income
and retained earnings are immaterial to the consolidated financial
statements.
3 The fiscal year of consolidated subsidiaries
The consolidated financial statements include the accounts of 7
consolidated subsidiaries with fiscal years that end December 31.
Appropriate adjustments are made for significant transactions during
the period from December 31 to March 31, the date of the consolidated
financial statements.
All significant intercompany balances, transactions and unrealized
profits and losses included in assets and liabilities are eliminated.

IYO BANK Annual Report 2021

23

4 Significant accounting policies(1) Trading account securities
Trading account securities of the Bank and its consolidated subsidiaries
are stated at fair market value. Gains and losses realized on the disposal
and unrealized gains and losses from market value fluctuations of thesesecurities are recognized as gains and losses in the period of the change.
Realized gains and losses on the sale of such trading account securities
are computed using moving average cost.
(2) Securities①	Held-to-maturity debt securities are stated at amortized cost by thestraight-line method. Available-for-sale securities with available fairmarket values are stated at fair market value. Realized gains andlosses on the sale of such securities are computed using moving
average cost. Available-for-sale securities with fair values that are
extremely difficult to determine are carried at cost using moving
average cost. Unrealized gains and losses on these securities arereported, net of applicable income taxes, as a separate component of
net assets.
②	Securities included in the money held in the trust account are treatedin the same manner as the securities mentioned above.
(3) Derivatives and hedge accounting
Derivative transactions are valued at fair value with changes in fair value
included in current income.
(4) Tangible and intangible fixed assets and lease assets①	Tangible and intangible fixed assets are generally stated at cost, lessthe accumulated depreciation.
		
Depreciation of tangible fixed assets, except for lease assets,of the Bank and its consolidated subsidiaries is recorded using thedeclining balance method. However, buildings acquired after April 1,
1998 and accompanying facilities and structures acquired on or after
April 1, 2016 are depreciated using the straight-line method. The
estimated useful lives of these assets are 15 – 40 years for buildings
and 5 – 10 years for equipment.
②	Depreciation for intangible fixed assets, except for lease assets, ofthe Bank and its consolidated subsidiaries is recorded using thestraight-line method. Internal use software costs of the Bank andits consolidated subsidiaries are depreciated using the straight-line
method over the estimated useful life of mainly five years.
③	Both tangible and intangible lease assets under finance leases thatare not deemed to transfer ownership of the lease property to thelessee are depreciated using the straight-line method over the leaseterm with zero residual value. In cases in which there is a residual
value guarantee in the contract, the residual value is the guaranteedvalue. In other cases, it is deemed to be zero.
(5) Reserve for possible loan losses
The Bank and its consolidated subsidiaries write off loans and makeprovisions for possible loan losses. For loans to insolvent customers who
are undergoing bankruptcy or other collection proceedings or who arein a similar financial condition, the reserve for possible loan losses isprovided in the full amount of such loans, excluding amounts written off
and the portion that is estimated to be recoverable due to the existenceof security interests or guarantees. For the unsecured and unguaranteed
portions of loans to customers not in the above circumstances but for who
there is a high probability of becoming so, the reserve for possible loan
losses is provided for the estimated unrecoverable amounts determined
after an evaluation of the customer’s overall financial condition.

24

IYO BANK Annual Report 2021

For loans, other than to insolvent customers mentioned above,that have been restructured due to the impact of the COVID-19 or for
debtors in specific industries that are highly affected by the COVID-19,
an allowance is provided for the amount of claims, net of the expectedamount of recoveries from the disposable security and guarantees,
multiplied by a certain ratio of the remaining amount.
With regard to other receivables, the Bank principally posts
estimated losses for the next 1 year or the estimated losses for the next
3 years. The estimated losses are calculated based on actual averageloan loss ratios for certain 1 year or 3 years periods with necessary
adjustments.
Assessments and classifications are made by each business and credit
supervision department and are audited by the Credit Administration
Department, an independent department. The reserve for possible loan
losses is provided based on such procedures.
The estimated unrecoverable portions of loans to insolvent
customers who are undergoing bankruptcy or other collection
proceedings or who are in a similar financial condition are written off.
The estimated unrecoverable amounts are determined after excluding
amounts considered recoverable due to the existence of security
interests or guarantees. As of March 31, 2021 and 2020, the estimatedunrecoverable amounts were ¥19,347 million ($174,753 thousand) and¥19,283 million, respectively.
The consolidated subsidiaries write off loans and make provisions forpossible loan losses based on the actual rate of loan losses in the past.
However, unrecoverable amounts of loans to customers who have a highprobability of becoming bankrupt are separately estimated and a reservefor possible loan losses is provided based on those estimations.
(6) Accrued employees’ bonuses
Accrued employees’ bonuses are provided for the future payment of
employees’ bonuses based on the estimated amounts of the future
payments that are attributed to the current fiscal year.
(7) Reserve for losses on repayment of dormant bank accounts
Reserve for losses on repayment of dormant bank accounts is provided inconnection with inactive bank accounts the balances of which have been
derecognized as liabilities. The reserve is provided for the possible future
demands on claims of withdrawal from these accounts in an amountbased on historical reimbursement experience.
(8) Reserve for contingent losses
Reserve for contingent losses is maintained to provide against possible
losses from contingencies which are not covered by other specificreserves. The amount of reserve is based on an estimate of the amountpossible future losses.
(9) Reserve for share-based payments
Reserve for share-based payments is provided for the estimated amountof share benefit obligations at the end of the current fiscal year in orderto prepare for delivery of the bank’s shares to the bank’s directors(excluding the audit committee members) and executive officers under
the internal share delivery regulations.
(10) Reserve under special laws
Reserve under special laws is provided for contingent liabilities fromfinancial instruments and exchange. This is a reserve pursuant to Article
46-5 of the Financial Instruments and Exchange Act and Article 175
of Cabinet Office Ordinance on the Financial Instruments Business toindemnify losses incurred in connection with the purchase and sale ofsecurities and derivatives and other financial related transactions.

(11) Accounting method for retirement benefits
In calculating benefit obligation, the portion of the projected benefit
obligation attributed to the current fiscal year is determined using
the benefit formula method. Prior service cost is amortized using thestraight-line method over 10 years. Actuarial differences are recognized
as expenses using the straight-line method within the average of theestimated remaining service years of employees commencing with thefollowing period.
Some consolidated subsidiaries use a simplified method to calculate
net defined benefit liability and retirement benefit cost. This simplified
method assumes the Company’s retirement benefit obligations to beequivalent to the benefits that would be payable upon the voluntary
retirement of all employees at the fiscal year-end to calculate net defined
benefit liability and retirement benefit cost.
(12) Foreign currency translations
Foreign currency assets and liabilities and the accounts of overseas
branches of the Bank are translated into yen at the rates prevailing at
the consolidated balance sheet date. Consolidated subsidiaries’ foreign
currency assets and liabilities are translated into yen at the rate prevailingat their respective balance sheet dates.
(13) Revenue Recognition①	Finance leases
	In connection with finance leases as the lessor, sales and cost of sales
are recognized at the time of receiving lease payment.
②	Operating leases
	As lessor under operating leases, lease related income is recognizedon a straight-line basis over the full term of the lease based on thecontractual amount of lease fees per month.
(14) Significant hedge accounting methods①	Hedge interest rate risk
	In order to hedge the interest rate risk associated with various
financial assets and liabilities, the Bank applies the deferred hedge
accounting method stipulated in JICPA Industry-specific Committees
Guidance No. 24, October 8, 2020, “Accounting and Auditing
Treatment of Accounting Standards for Financial Instruments in
Banking Industry.” The effectiveness of hedging is assessed for (i)each identified group of hedged items, such as deposits, loans andsimilar instruments and (ii) the corresponding group of hedging
instruments, such as interest rate swaps, in the same maturity bucket.
②	Hedge against fluctuation in foreign exchange rates
	For certain assets and liabilities, the Bank and its consolidated
subsidiaries apply the exceptional treatment permitted for interest
rate swaps. The Bank applies the deferred method of hedge
accounting to hedge foreign exchange risk associated with various
foreign currency denominated monetary assets and liabilities as
stipulated in JICPA Industry-specific Committees Guidance No. 25,
October 8, 2020, “Treatment of Accounting and Auditing
Concerning Accounting for Foreign Currency Transactions in
the Banking Industry.” The effectiveness of the currency swap
transactions, exchange swap transactions and similar transactions
that hedge the foreign exchange risk of monetary assets and liabilities
denominated in foreign currencies is assessed based on a comparisonof the foreign currency positions of the hedged monetary assets andliabilities and the hedging instruments.
		
The Bank also applies fair value hedge accounting to portfolio
hedges of the foreign exchange risk associated with foreign currency

denominated available-for-sale securities (other than bonds) identified
as hedged items in advance as long as the amount of spot andforward foreign exchange contracts payable exceeds the acquisition
costs of the hedged securities in foreign currency.
(15) Cash flow statements
In preparing the consolidated statements of cash flows, cash on handand deposits with the Bank of Japan are considered to be cash and cash
equivalents.
(16) Consumption taxes
National and local consumption taxes are accounted for mainly on a tax
exclusion basis.
(17) Application of consolidated tax reporting
The Bank and its wholly owned consolidated subsidiaries have adopted aconsolidated tax return system.
(18) Changes in Presentation Method(Adoption of “Accounting Standard for Disclosure of Accounting
Estimates”)
The Bank and its subsidiaries adopted ASBJ Statement No. 31“Accounting Standard for Disclosure of Accounting Estimates” (March
31, 2020) for the consolidated financial statements for the current
consolidated fiscal year, and therefore significant accounting estimates
are disclosed in the notes to consolidated Financial Statements.
The notes do not include information for the prior consolidated fiscal
year in accordance with the transitional provisions set out in Paragraph
11 of the Accounting Standard.
(19) Significant Accounting Estimates
Reserve for loan losses①	Carrying amounts in the current year’s financial statements¥37,043 million ($334,594)(Note) The amount includes ¥8,681 million ($78,412) reflecting theeffects of the COVID-19②	Information on the nature of significant accounting estimates for
identified items(a) Method in making the accounting estimates
For the calculation of Reserve for loan losses, See (5) Reserve forpossible loan losses of “4 Significant accounting policies.”(b) Key assumptions used in making the accounting estimates
The main assumption is “Credit risk of loans in determining
debtor classification.” “Credit risk of loans in determining debtor
classification” was determined by evaluating the repayment
capacity of each debtor based on its financial condition, cash
flow, profitability, etc.
In addition, for loans that have been restructured due to theimpact of the COVID-19 or for debtors in specific industries thatare highly affected by the COVID-19, it was highly assumed tohave a deterioration in their future financial condition, cash flow,
profitability, etc. than other debtors.
(c) The effect on the next year’s financial statements
Changes for the original assumption due to the inflection in theperformance of individual debtors or the impact of the spreadof the COVID-19 could effect on reserve for loan losses of theconsolidated financial statements for the following fiscal year.

IYO BANK Annual Report 202125

(20) Per share data
Net income per share is based on the weighted average number ofshares of common stock outstanding during the year, excluding treasury
stock. Diluted net income per share reflects the potential dilution that
could occur if stock options were exercised. Diluted net income per shareof common stock assumes the full exercise of outstanding warrants atthe time of issuance.
Cash dividends per share shown in the accompanying consolidated
statements of income represent dividends declared as applicable to therespective year.

(Accounting standards not yet adopted)“Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and “Implementation Guidance on AccountingStandard for Revenue Recognition” (ASBJ Guidance No. 30, March 26,
2021)
1 Overview
The above standard and guidance provide comprehensive principles
for revenue recognition. Under the standard and guidance, revenue isrecognized by applying following 5 steps:
Step 1: Identify contract(s) with customers.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligation in
the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performanceobligation.
2 Effective date
Effective from the beginning of the fiscal year ending March 31, 2022.

2 Effective date
Effective from the beginning of the fiscal year ending March 31, 2022.
3 The impact of the adoption of this accounting standard is currently
under evaluation.
(Additional Information)
1 The share-based payment program using the trust
The Bank has introduced a share-based payment program using a trust
for its directors (excluding audit committee members) and executive
officers with the aim of raising awareness of contribution to the Bank’s
medium to long-term performance and enhancement of its corporate
value.
(1) Overview of transactions
The trust acquires shares of the Bank using funds contributed by theBank.
In accordance with internal share delivery policies set forth by the
Board of Directors of the Bank, the Bank grants points to its directors(excluding audit committee members) and executive officers. At thetime of retirement, shares of the Bank and money will be delivered inaccordance with the points through the trust.
(2) Shares of the Bank held by the trust①	Shares of the Bank held by the trust are recorded as treasury stock in
net assets at the book value in the Bank.
②	The book value of the trust at March 31, 2021 and 2020 is ¥191
million ($1,725 thousand) and ¥219 million, respectively.
③	The number of shares of the Bank held by the Trust at March 31,
2021 and 2020 was 247 thousand shares and 284 thousand shares,
respectively.

3 The impact of the adoption of this accounting standard is insignificant.
•	Accounting Standard for Fair Value Measurement” (ASBJ Statement
No. 30, July 4, 2019)•	Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, July 4, 2019)•	Accounting Standard for Measurement of Inventories” (ASBJ Statement
No. 9, July 4, 2019)•	Accounting Standard for Financial Instruments” (ASBJ Statement No.
10, July 4, 2019)•	Implementation Guidance on Disclosure of Fair Value of Financial
Instruments (ASBJ Guidance No. 19, March 31, 2020)

1 Overview
In order to enhance comparability with internationally recognizedaccounting standards, “Accounting Standard for Fair Value
Measurement” and “Implementation Guidance on Accounting Standard
for Fair Value Measurement” (together, hereinafter referred to as“Fair Value Accounting Standards”) were developed and guidanceon methods measuring fair value was issued. Fair Value AccountingStandards are applicable to the fair value measurement of the following
items:•	Financial instruments defined by in “Accounting Standard for Financial
Instruments”; and•	Inventories held for trading purposes defined by “Accounting Standard
for Measurement of Inventories.”
In addition, “Implementation Guidance on Disclosure of Fair Value of
Financial Instruments” was revised to require disclosure of fair valuelevels.

26

IYO BANK Annual Report 2021

2	Application of tax effect accounting for the transition fromthe consolidated tax payment system to the group taxation
systemIn relation to temporary differences that have been revised following thetransition to the group tax sharing system and the revision of the single
tax payment system in response to the transition, which were establishedby the “Act for Partial Amendment of the Income Tax Act, Etc” (ActNo. 8, 2020), the Bank and some of its consolidated subsidiaries did
not apply Paragraph 44 of “Implementation Guidance on Tax EffectAccounting” (ASBJ Guidance No. 28, February 16, 2018) but provisionsof the previous tax laws to calculate deferred tax assets and liabilities inaccordance with Paragraph 3 of “Practical Solution on the Treatment of
Tax Effect Accounting for the Transition from the Consolidated Taxation
System to the Group Tax Sharing System” (PITF No. 39, March 31,2020).
(Notes to Consolidated Balance Sheet)
2-1. STOCKS AND INVESTMENTS IN UNCONSOLIDATEDSUBSIDIARIES AND AFFILIATES
Stocks in unconsolidated subsidiaries and affiliates amounted to ¥100
million ($903 thousand) and ¥75 million at March 31, 2021 and 2020,
respectively.
Investments in unconsolidated subsidiaries and affiliates amounted
to ¥212 million ($1,914 thousand) and ¥193 million at March 31, 2021
and 2020, respectively.
2-2. Securities received under transactions with resale agreements andothers that are entitled to sale or (re)pledge were nil and ¥355,563
million at March 31, 2021 and 2020, respectively.

2-3. LOANS AND BILLS DISCOUNTED
Loans and bills discounted included the following:Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Loans to bankrupt customers
Non-accrual loans
Loans overdue threemonths or more
Restructured loans
Total

In addition to the above, assets pledged as collateral for transactions
such as exchange settlement transactions and others were as follows:

2021
¥ 847
57,0762020¥ 4,544
57,1112021$ 7,650
515,545

1,812
15,055¥74,792

2,614
15,418¥79,690

16,367
135,985$675,566

Loans to bankrupt customers are loans to customers who are undergoingbankruptcy or similar proceedings or who are in a similar financial
condition. Interest is not being accrued on these loans as there is astrong likelihood that the principal and interest will be uncollectible.
Non-accrual loans are nonperforming loans that are not generatinginterest income because of nonpayment and for which accrued interest
income is not recognized, excluding loans to bankrupt customers andloans on which interest payments are deferred in order to support theborrower’s recovery from financial difficulties.
Loans overdue three months or more are loans not included in theabove categories or in restructured loans for which payments are past
due three months or more.
Restructured loans are loans not included in the above categories forwhich the Bank has granted concessions such as reduced interest rates
or deferral or waiver of interest and/or principal payments to support
customers experiencing financial difficulties.
Amounts described above are before the deduction of reserve forpossible loan losses.

2-4. COMMERCIAL BILLS
Bills discounted are accounted for as financing transactions in accordancewith JICPA Industry-specific Committees Guidance No. 24, October 8,
2020, although the Bank has the right to sell or pledge them without
restrictions. The total face value of commercial bills and purchased
foreign exchange bills obtained as a result of discounting was ¥13,187
million ($119,112 thousand) and ¥18,514 million at March 31, 2021 and2020, respectively.
2-5. ASSETS PLEDGED
Assets pledged as collateral were as follows:
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Receivables under resaleagreements
Securities
Loans
Total

2021

2020

2021

¥—
710,931
661,447¥1,372,378¥ 355,563
701,931
370,591¥1,428,086$—
6,421,560
5,974,591$12,396,152

The above pledged assets secure the following liabilities:
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Deposits
Payables under repurchaseagreements
Payables under securities
lending transactions
Borrowed money

2021¥ 26,0292020¥ 27,684

2021$ 235,109

199,289

30,3571,800,099

91,604732,257

198,436
760,024

827,4226,614,190

Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Securities
Other assets

2021
¥ 434
50,0002020¥ 437
50,0002021$ 3,920451,630

Other assets above mentioned were as follow:
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

2021
Initial margins of futures
markets
Cash collateral paid forfinancial instruments
Guarantees
Security deposits

¥

2021

2020
292

10,23974276—$ 2,637

9,363
75
280

92,484
668
2,492

¥

2-6. COMMITMENT LINES
Commitment line agreements related to loans are agreements which
oblige the Bank and its consolidated subsidiaries to lend funds up
to certain limits agreed to in advance. The Bank and its consolidated
subsidiaries will lend the funds upon the request of an obligor to draw
down the funds under the loan agreement as long as there is no breach of
the various terms and conditions stipulated in the relevant loan agreement.
The unused commitment balances related to these loan agreements at
March 31, 2021 and 2020 amounted to ¥1,247,214 million ($11,265,594
thousand) and ¥1,180,388 million, respectively. Of these amounts,¥1,105,322 million ($9,983,940 thousand) and ¥1,053,999 million asof March 31, 2021 and 2020, respectively, related to loans in which theterm of the agreement was one year or less or in which unconditional
cancellation of the agreement was allowed at any time.
In many cases, the term of the loan agreement runs its course
without the loan ever being drawn down. Therefore, unused loan
commitments do not necessarily affect future cash flows.
Conditions are included in certain loan agreements which allow the
Bank and its consolidated subsidiaries either to decline the request fora loan draw-down or to reduce the agreed limit when there is cause to
do so, such as when there is a change in the financial condition of theobligor or when it is necessary to protect the Bank’s or a consolidated
subsidiary’s credit. The Bank and its consolidated subsidiaries takevarious measures to protect their credit, including having the obligor
pledge collateral in the form of real estate, securities, etc., on signing
the loan agreement or in accordance with the Bank and its consolidated
subsidiaries’ established internal procedures for confirming an obligor’s
financial condition, etc., at regular intervals.
2-7. LAND REVALUATION EXCESSIn accordance with the Revaluation Act of Land Properties, the Bank
revalued land used in the ordinary course of business as of March
31, 1998. The revaluation excess, net of deferred taxes, is shown as
a separate component of net assets. The current market value of therevalued land was lower than the revalued amount by ¥12,635 million($114,126 thousand) and ¥13,177 million at March 31, 2021 and 2020,
respectively.

IYO BANK Annual Report 202127

2-8. TANGIBLE FIXED ASSETS
Accumulated depreciation of tangible fixed assets at March 31, 2021
and 2020 amounted to ¥54,267 million ($490,172 thousand) and¥54,297 million, respectively. The amounts that were directly offset
against acquisition costs as of March 31, 2021 and 2020 were ¥8,243
million ($74,455 thousand) and ¥8,256 million, respectively.
2-9. GUARANTEE OBLIGATIONS
Guarantee obligations for private placement bonds in securities inaccordance with the Article 2-3 of the Financial Instruments andExchange Law amounted to ¥62,323 million ($562,939 thousand) and¥60,466 million at March 31, 2021 and 2020, respectively.
2-10. ACCEPTANCES AND GUARANTEESThe principal amount of money trusts to be indemnified by the Bankand its consolidated subsidiaries was ¥5 million ($45 thousand) and ¥28
million at March 31, 2021 and 2020, respectively.

(Notes to Consolidated Statement of Comprehensive Income)
4-1. RECLASSIFICATION ADJUSTMENTS AND THE RELATED TAX
EFFECTS CONCERNING OTHER COMPREHENSIVE INCOME(Notes to Consolidated Statement of Income)3-1. GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses included salaries and allowancesin the amount of ¥21,173 million ($191,247 thousand) and ¥21,223
million at March 31, 2021 and 2020, respectively.

2021

2020

2021

¥ 85,864(3,717)¥15,553(3,529)$ 775,575(33,574)

82,147(25,480)

12,023(3,975)742,001(230,150)

56,666

8,048

511,841(2,895)
1,215

(287)
3,652

(26,149)
10,974(1,680)512

3,365(1,026)(15,174)
4,624(1,167)

2,338(10,541)

13,263(415)(1,070)(985)

119,799(3,748)

12,848(3,918)(2,056)627

116,050(35,389)

8,929(1,429)80,652¥ 64,428¥ 8,957$ 581,952

3-2. OTHER EXPENSES
Other expenses consisted of the following:
Millions of yen

Loans written off
Securities written off

2021
¥ 20
106

2020
¥ 20
399

Thousands of
U.S. dollars(Note 1-1)

2021
$180
957

3-3. IMPAIRMENT LOSS
For the year ended March 31, 2021, impairment losses were immaterial.
Related information, therefore, is omitted.
For the year ended March 31, 2020, the Bank reduced the bookvalues of the following asset groups to the recoverable amounts andrecognized impairment loss of ¥931 million due to a continuous decline
in land prices and a decline in operating cash flow.
Location

Millions of yen
2020
Major use
Type

Inside Ehime
Prefecture

14 offices,
includingbranches

Inside Ehime
Prefecture

Idle assets2 items

Outside Ehime
Prefecture

1 branch

Total

28

With respect to the calculation of impairment loss on fixed assets,
the minimum operational unit recognized for management accounting
purposes by the Bank is a branch. However, where a number ofbranches operate as a group at the managerial level, the accounting unit
is the group rather than the individual branch.
With respect to the consolidated subsidiaries, in principle, eachcompany is treated as a separate and individual unit for impairment
accounting purposes.
In calculating impairment loss on fixed assets for the reporting
period, the amount deemed recoverable, i.e., the net proceeds from sale,
was estimated by deducting the cost of disposal from the real estateappraisal value based on official appraisal standards.

IYO BANK Annual Report 2021

Land and buildings(Land)(Buildings)
Land and buildings(Land)(Buildings)
Land and buildings(Land)(Buildings)
Land and buildings(Land)(Buildings)

Impairment loss

¥ 912
(678)
(186)
¥ 17
(16)
(0)
¥ 1
(0)
(0)
¥ 931
(696)
(188)

Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Net unrealized holding
gains (losses) on securities
Incurred during the period
Reclassification adjustments
Before tax effectadjustments
Tax effectNet unrealized holding
gains (losses) on securities
Net deferred gains (losses)
on derivatives under hedge
accounting
Incurred during the period
Reclassification adjustments
Before tax effectadjustments
Tax effect
Net deferred gains(losses) on derivatives
under hedge accounting
Remeasurements ofdefined benefit plans
Incurred during the period
Reclassification adjustments
Before tax effectadjustments
Tax effectRemeasurements ofdefined benefit plans
The total amount of othercomprehensive income

(Notes to Consolidated Statement of Changes in Net Assets)
5-1. Type and number of shares issued and treasury stock
Type and number of shares issued and treasury stock in the year ended March 31, 2021 and 2020 were as follows:

Number of shares at the beginningof the accounting period

Shares issued
Common stock
Total
Treasury stock
Common stock
Total(Thousands)
2021
Increase in number of shares
Decrease in number of shares
during the accounting period
during the accounting period

Number of shares at the end of
the accounting period

323,775
323,775————

323,775
323,775

7,222
7,222

1
1

119
119

7,104
7,104

1 The increase in number of shares of treasury stock was from the purchase of fractional shares (1 thousand shares)
2 The decrease in number of shares of treasury stock was due to the delivered shares of the Bank through the Trust (36 thousand shares) and theexercise of stock acquisition rights (82 thousand shares).
3 The number of shares of treasury stock at the beginning of the current fiscal year and at the end of the current fiscal year includes the Bank’s shares
held by the Trust for the share-based payment system (284 thousand shares and 247 thousand shares, respectively).

Number of shares at the beginningof the accounting period

Shares issued
Common stock
Total
Treasury stock
Common stock
Total(Thousands)
2020
Increase in number of shares
Decrease in number of shares
during the accounting period
during the accounting period

Number of shares at the end of
the accounting period

323,775
323,775————

323,775
323,775

7,302
7,302

0
0

81
81

7,222
7,222

1 The increase in number of shares of treasury stock was from the purchase of fractional shares (0 thousand shares)
2 The decrease in number of shares of treasury stock was due to the delivered shares of the Bank through the Trust (15 thousand shares) and theexercise of stock acquisition rights (65 thousand shares).
3 The number of shares of treasury stock at the beginning of the current fiscal year and at the end of the current fiscal year includes the Bank’s shares
held by the Trust for the share-based payment system (300 thousand shares and 284 thousand shares, respectively).

5-2. Stock acquisition rights and own stock acquisition rights
Stock acquisition rights and own stock acquisition rights in the year ended March 31, 2021 and 2020 were as follows:

Division

Details of stockacquisition rights

Type of shares
to be issued

The Bank

Stock acquisition rights
as stock options

2021
Number of shares subject to stock acquisition rights
Beginningbalance
Increase
Decrease
Closing balance

Total

Closing balance
Thousands of U.S.
Millions of yen dollars (Note 1-1)

—

273

2,465

—

273

2,465

2020

Division

Details of stockacquisition rights

Type of shares
to be issued

The Bank

Stock acquisition rights
as stock options

Number of shares subject to stock acquisition rights
Closing balance
Beginningbalance
Increase
Decrease
Closing balance Millions of yen

Total

—

343

—

343

5-3. Dividends
The following dividends were paid in the year ended March 31, 2021 and March 31, 2020, respectively.

Date of resolution

Directors’ meeting held on
May 26, 2020
Directors’ meeting held on
November 6, 2020

Type of shares

2021
Amount of dividends
Thousands of U.S.
Millions of yen dollars (Note 1-1)

Cash dividends per share
U.S. dollars
Yen(Note 1-1)

Record date

Effective date

March 31, 2020

June 5, 2020

Common stock¥2,217$20,025

¥7.00

$0.06

Common stock¥2,218$20,034¥7.00$0.06 September 30, 2020 December 10, 2020

1. The total amount of dividends on common stock resolved at the Directors’ meeting held on May 26, 2020 includes ¥1 million in dividends to the
Bank’s shares held by the Trust for the share-based payment system.
2. The total amount of dividends on common stock resolved at the Directors’ meeting held on November 6, 2020 includes ¥1 million in dividends to the
Bank’s shares held by the Trust for the share-based payment system.

IYO BANK Annual Report 2021

29

Dividends whose record date is attributable to the year ended March 31, 2021 but which became effective after March 31, 2021

Date of resolution

Directors’ meeting held on
May 14, 2021

Type ofsharesAmount of dividends
Thousands of U.S.
Millions of yen dollars (Note 1-1)

Commonstock¥2,218$20,034

Source ofdividends
Retainedearnings

Cash dividends per share
U.S. dollars
Yen(Note 1-1)

¥7.00

$0.06

Record date

March 31, 2021

2020

Date of resolution

Directors' meeting held on
May 10, 2019
Directors' meeting held on
November 8, 2019

Amount ofdividends

Cashdividends
per share

Type of shares

Millions of yen

Yen

Record date

Effective dateCommon stock¥2,217¥7.00

March 31, 2019

June 6, 2019

Common stock¥2,217¥7.00

September 30, 2019

December 10, 2019

1. The total amount of dividends on common stock resolved at the Directors’ meeting held on May 10, 2019 includes ¥2 million in dividends to the
Bank’s shares held by the Trust for the share-based payment system.
2. The total amount of dividends on common stock resolved at the Directors’ meeting held on November 8, 2019 includes ¥1 million in dividends to the
Bank’s shares held by the Trust for the share-based payment system.
Dividends whose record date is attributable to the year ended March 31, 2020 but which became effective after March 31, 2020

Date of resolution

Directors’ meeting held on
May 26, 2020

Amount ofdividends

Type ofsharesMillions of yen

Commonstock¥2,217

Source ofdividends
Retainedearnings

Cashdividends
per share
Yen

Record date

¥7.00 March 31, 2020

Effective dateJune 5, 2020

The total amount of dividends on common stock includes ¥1 million in dividends to the Bank’s shares held by the Trust for the share-based payment
system.

(Notes to Consolidated Statement of Cash Flows)
6-1. CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the consolidated statements of cash flows
included due from banks, except for deposits with the Bank of Japan, as
follows:
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

2021
Cash and due from banks
in the balance sheets
Due from banks, except
for deposits with the Bankof JapanCash and cash equivalentsin the statements ofcash flows

2020

2021

¥1,415,522¥719,086$12,785,854(1,958)(1,198)(17,685)¥1,413,563¥717,887② The method used to depreciate for lease assets
See “SIGNIFICANT ACCOUNTING POLICIES - Tangible and intangible
fixed assets and lease assets.”

IYO BANK Annual Report 2021

Millions of yen

Due within one year
Due after one year
Total

2021
¥107
332
¥440

2020
¥ 92
42
¥134

Thousands of
U.S. dollars(Note 1-1)

2021
$ 966
2,998
$3,974As lessor
Millions of yen$12,768,160(Notes to Lease Transactions)
1. LEASE TRANSACTIONS(1) Finance Leases
Finance leases that do not transfer ownership of the lease assets① Details of lease assets(i) Tangible fixed assets
Automatic teller machines(ii) Intangible fixed assets
Not applicable30(2) Operating Leases
Future lease payment payables and receivables under noncancelable
operating leases were as follows:
As lessee

Due within one year
Due after one year
Total

2021
¥ 47
99
¥147

2020
¥ 65
147
¥213

Thousands of
U.S. dollars(Note 1-1)

2021
$ 424
894
$1,327

(Notes to Financial Instruments)
1 Financial instruments(1) Policy on financial instruments
The Bank and its consolidated subsidiaries engage mainly in thefinancial services business and provide lending services and leasing
services. Accordingly, the Bank holds financial assets and liabilities
that are subject to interest rate fluctuations and undertakes asset andliability management (ALM) in order to curb any unfavorable impact
from interest rate fluctuations. The Bank also engages in derivativetransactions as part of its ALM.
(2) Descriptions and risks of financial instruments
The financial assets of the Bank and its consolidated subsidiaries consist
mainly of loans to customers, which are subject to default risk. Also, theBank holds securities that are mainly stocks, bonds and mutual funds forinvestment, management or trading purposes. They are subject to theissuer’s credit risk, interest rate risk and market price risk.
The foreign currency denominated financial assets and liabilities
are subject to foreign currency risk. The Bank uses currency swaps tomanage the risk.
The Bank’s derivative transactions include interest rate swaps. The
Bank applies hedge accounting to the interest on loans to hedge interest
rate risks regarding the interest rate swaps as hedge instruments. The
effectiveness is ensured by maintaining a balance of hedge instrumentsthat does not exceed the balance of the hedged items, which aregrouped by incidence and remaining period.
Other transactions not qualifying for hedge accounting expose the
Bank to foreign exchange and interest rate risks.
(3) Risk management system for financial products① Credit risk management
The Bank prescribes its credit risk management policy in its “RiskManagement Plan,” which is issued by the Board of Directors biannually.
In particular, the Bank diversifies credit risk by ensuring that credit
granted is not overconcentrated in certain customers, groups orindustries. The Bank periodically analyzes and evaluates the credit
conditions classified by internal ratings, business area and industry.
The Bank strives to optimize its credit portfolio by promoting effective
credit risk management. Feedback regarding credit risk management isreported to the Board of Directors on a regular basis.
The Bank manages each customer’s credit in compliance with its“Internal Rating System,” part of the Bank’s credit risk management.
The Risk Management Division (RMD), which is completely independent
from other banking business divisions, is responsible for planning andadministrating the internal rating system and conducting, coordinating
and monitoring the internal ratings. The Loan Group is responsible forsupervising the individual credit granted and examining each customers’
finances, purpose for the loan and ability to repay. The group is
independent from the business promotion group and is divided into
four divisions: the Credit Division - responsible for general loans, theShip Finance Division – responsible for the loans such as loans in the
shipping and shipbuilding industries, the Credit Management Division responsible for the planning of loan administration and troubled credit
and the Corporate Consulting Division - responsible for supporting
company rehabilitation. The assets are initially assessed by each branch
and then by the head office, followed by a validation by RMD, which isalso responsible for the formulation of the assessment standards.
The credit granted by the consolidated subsidiaries is managed foreach customer along with the credit granted by the Bank. RMD also
manages the credit risk of issuers and counterparty risk in derivativetransactions by monitoring and periodically evaluating credit informationand market prices.
② Market risk management
In order to properly manage market risk and maintain the Bank’ssoundness and profitability, the Bank has established a comprehensive
risk management structure set forth by the ALM Committee. The ALM
Committee uses various measures such as the gap method, market
value analysis, periodic income/loss simulation and the VaR method tocontrol risk. The ALM Committee also coordinates risk management
plans and hedging strategies by analyzing the profitability structure andforecasting the market and the economic environment. RMD, set up
as an independent supervisor, evaluates the appropriateness of market
transactions dealt with by other divisions.
The Bank sets limits on the quantity of risk that may be undertaken
in its “Risk Management Plan,” which is developed by the Board of
Directors biannually. RMD monitors compliance with the plan and reports
to the Board of Directors on a monthly basis.
(Quantitative information on market risk)
The Bank measures market risk based on the VaR method. The variancecovariance model (holding period: 120 business days; confidence
interval: 99.9%; and historical observation period: 1,200 business days)
is applied in the measurement of VaR.
The major market risks for the Bank are equity risk and interest raterisk. Financial instruments affected by interest rate risk are loans andbills discounted, available-for-sale securities, deposits, borrowed money,
interest swap transactions and interest rate cap derivative transactions.
At March 31, 2021 and 2020, the quantity of market risk (expected loss),which included equity risk and interest rate risk, amounted to ¥199.8
billion ($1,804 million) and ¥167.1 billion, respectively.
The Bank confirms the validity of the measurement model by
biannually performing back-testing which compares VaR with actualfluctuations in profit and loss during the observation period. However,
VaR, the quantity of market risk which is statistically measured withhistorical market fluctuations, may not reflect drastic changes in themarket.
③ Liquidity risk management
The liquidity risk management of the Bank is conducted through assetliability management (ALM) and the duration of funds procured withconsideration for the market environment.
(4) Supplementary explanation of matters related to fair values offinancial instruments and others
The fair values of financial instruments include values based on market
prices and values reasonably estimated when the financial instruments
do not have market prices. Since certain assumptions underlie theestimates of such values, the values may differ when other assumptions
are applied.

IYO BANK Annual Report 2021

31

2 Fair values of financial instruments
The following tables summarize book values, fair values and any differences between them. Unlisted stocks and others for which the fair value wasdeemed extremely difficult to determine were excluded from the tables below (see Note ii).

(1) Cash and due from banks(2) Receivables under resale agreements(3) Monetary claims purchased(4) Trading account securities
Trading securities(5) Money held in trust(6) Securities
Available-for-sale securities(7) Loans and bills discounted
Reserve for loan losses (*1)
Total Assets(1) Deposits(2) Negotiable certificates of deposit(3) Call money and bills sold(4) Payables under repurchase agreements(5) Payables under securities lending transactions(6) Borrowed money
Total Liabilities
Derivative Transactions (*2)
Derivative transactions to which hedge accounting is
not applied
Derivative transactions to which hedge accounting isapplied (*3)
Total Derivative Transactions

Book value

Millions of yen
2021
Fair value¥1,415,522—
6,834¥1,415,522
—
6,834

649
6,427

649
6,427

—
—

1,878,329
4,975,984(35,526)
4,940,458¥8,248,221¥5,963,676
531,969
61,624
199,289
91,604
743,645¥7,591,809

1,878,329
4,896,054—

4,896,054¥8,203,817¥5,963,765
531,969
61,624
199,289
91,604
743,686¥7,591,939¥2,329(7,166)¥(4,837)

Thousands of U.S. dollars (Note 1-1)
2021
Book value
Fair value
Difference

Difference

¥

—
—
—

$12,785,854 $12,785,854——
61,72861,728
5,862
58,052

$—
—
—

5,862
58,052———(44,403)¥(44,403)
¥
89
—
—
—
—
40
¥
130

16,966,209 16,966,209
44,946,111 44,224,135(320,892)
44,625,219 44,224,135$74,502,944 $74,101,860$53,867,545 $53,868,349
4,805,067
4,805,067
556,625556,625
1,800,099
1,800,099
827,422
827,4226,717,053
6,717,423$68,573,832 $68,575,006(401,074)$(401,074)
$803
—
—
—
—
361
$1,174¥2,329¥—$

21,036 $21,036$—(7,166)¥(4,837)

¥

—
—

$

(64,727)(43,690) $(64,727)(43,690)—$—(*1) General and specific reserves for loan losses relevant to loans and bills discounted are excluded.
(*2) D erivative transactions recorded in other assets and liabilities are presented as a lump sum. Net claims and debts that arise from derivative transactions arepresented on a net basis.
(*3) They are interest rate swaps, etc. designated as hedging instruments to offset market fluctuations of loans and bills discounted in hedged items.
The Bank mainly adopts deferred hedges. The Bank applies “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference
LIBOR” (PITF No.40, September 29, 2020) applied to these hedging relationships.
(*4) Immaterial items are omitted.

(1) Cash and due from banks(2) Receivables under resale agreements(3) Monetary claims purchased(4) Trading account securities
Trading securities(5) Money held in trust(6) Securities
Available-for-sale securities(7) Loans and bills discounted
Reserve for loan losses (*1)
Total Assets(1) Deposits(2) Negotiable certificates of deposit(3) Call money and bills sold(4) Payables under repurchase agreements(5) Payables under securities lending transactions(6) Borrowed money
Total Liabilities
Derivative Transactions (*2)
Derivative transactions to which hedge accounting is
not applied
Derivative transactions to which hedge accounting isappliedTotal Derivative Transactions

Book value

Millions of yen
2020
Fair value¥719,086
355,563
8,173¥ 719,086
355,563
8,173

727
7,074

727
7,074

—
—

1,694,560
4,733,091(29,591)
4,703,500¥7,488,686¥5,246,611
482,131217,618
30,357
198,436
770,378¥6,945,532

1,694,560
4,661,074—

4,661,074¥7,446,261¥5,246,865
482,131217,618
30,357
198,436
770,659¥6,946,068(42,425)¥(42,425)
¥
254
—
—
—
—
281
¥
535

¥(2,439)¥(2,439)¥—960¥(1,479)¥

960(1,479)¥——Difference

¥

—
—
—

(*1) General and specific reserves for loan losses relevant to loans and bills discounted are excluded.
(*2) D erivative transactions recorded in other assets and liabilities are presented as a lump sum. Net claims and debts that arise from derivative transactions arepresented on a net basis.
(*3) Immaterial items are omitted.

32

IYO BANK Annual Report 2021

Note i. Methods used to calculate fair value of financial instruments
Assets(1) Cash and due from banks
The fair value of due from banks with no maturity is considered equal
to the book value since the fair value approximates the book value. The
fair value of due from banks with maturity is calculated as the present
value discounted at rates that reflect the proper market risk and credit
risk per contractual terms. The fair value of due from banks with shortcontractual terms (within one year) is considered equal to the book value
since the fair value approximates the book value.
(2) Receivables under resale agreements
The fair value of receivables under resale agreements is considered equal
to the book value since the contractual term is within one year and thefair value of these items approximates the book value.
(3) Monetary claims purchased
The fair value of trustee beneficial rights in monetary claims purchasedis based on the price quoted by correspondent financial institutions. For
monetary claims purchased with short contractual terms (within oneyear), the fair value is considered equal to the book value since the fairvalue approximates the book value.
(4) Trading account securities
The fair value of securities such as bonds held for trading is based on themarket price or the price quoted by correspondent financial institutions.
(5) Money held in trust
The fair value of money held in trust is based on the price quoted bycorrespondent financial institutions. Information on money held in trustclassified by the purpose for which it is held is disclosed in (Notes to
Money held in trust).
(6) Securities
The fair value of stocks is based on market price. The fair value ofbonds is based on market price or the price quoted by correspondent
financial institutions. The fair value of investment trusts is based on the
publicly disclosed base value. The fair value of private placement bonds
is calculated as the present value discounted at a rate that reflects theproper market rate corresponding to the remaining period and credit risk
based on the internal rating. Information on securities classified by the
purpose for which they are held is disclosed in (Notes to Securities).
(7) Loans and bills discounted
The fair value of loans and bills discounted with floating rates are
considered equal to the book value since the rate reflects the market
rate in a short period, and the fair value approximates the book value
unless the creditworthiness of the borrower changes significantly after
the inception date. The fair value of loans and bills discounted with fixed
rates is calculated as the present value, discounting future cash flow at a
rate that reflects the proper market rate corresponding to the remaining
period and credit risk based on the internal rating. The fair value of loans
and bills discounted with short contractual terms (within one year) is
considered equal to the book value since the fair value of these items
approximates the book value.
In addition, the fair value of claims against bankrupt obligors,
substantially bankrupt obligors and intensive control obligors
approximates the consolidated balance sheet amount as of theconsolidated balance sheet date less the allowance for bad debt since
the bad debt is calculated based on the present value of the expected
future cash flow or the estimated collectable amount from collateral
and/or guarantees.

For loans and bills discounted, the fair value of loans and bills
discounted with no maturity due to conditions such as limiting theloans to the value of pledged assets is deemed the book value since thefair value is expected to approximate the book value considering theestimated loan period, interest rate and other conditions.
Liabilities(1) Deposits and (2) Negotiable certificates of deposit
The fair value of demand deposits is considered the payable amount asof the consolidated balance sheet date (the book value). In addition,
the fair value of fixed-term deposits is calculated as the present value,
discounting the future cash flow at a rate that reflects the proper market
rate corresponding to the remaining period and credit risk of the Bank.
The fair value of deposits with short contractual terms (within one year)
is considered equal to the book value since the fair value approximates
the book value.
(3) Call money and bills sold, (4) Payables under repurchaseagreements and (5) Payables under securities lendingtransactions
The fair value of call money, bills sold and payables under securities
lending transactions is considered equal to the book value since thecontractual term is within one year and the fair value of these items
approximates the book value.
(6) Borrowed money
The fair value of borrowed money with a floating rate is consideredequal to the book value since the rate reflects the market rate in a shortperiod, the creditworthiness of the Bank and its consolidated subsidiaries
has not changed significantly since the inception date and the fair valueof these items approximates the book values.
The fair value of borrowed money with a fixed rate is calculated as
the present value, discounting future cash flow at a rate that reflects theproper market rate corresponding to the remaining period and credit riskof the Bank.
Derivative Transactions
Information on derivative transactions is disclosed in (Notes to Derivative
Transactions.)
Note ii. Financial instruments whose fair value is deemed extremely
difficult to determine are not included in “Available-for-salesecurities” in the table above.

Category

Unlisted stocks (*1) (*2)
Investments inpartnerships (*3)
Total

Consolidated balance sheet amount(2021)(2020)(2021)
Thousands of
U.S. dollars
Millions of yen Millions of yen(Note 1-1)

¥13,649¥12,772$123,286

5,788¥19,438

6,242¥19,01452,280$175,575(*1) Unlisted stocks are not included in the disclosure of fair value since the fairvalue is deemed extremely difficult to determine.
(*2) The amount of impairment on unlisted stock during the year ended March
31, 2021 and the year ended March 31, 2020 were ¥90 million ($812
thousand) and ¥59 million, respectively.
(*3) Investments in partnerships in which the partnership assets compriseunlisted stocks are not included in the disclosure of fair value since the fairvalue is deemed extremely difficult to determine.

IYO BANK Annual Report 2021

33

Note iii. Expected redemption of monetary claims and securities with maturities

Due from banks
Receivables under resale agreements
Monetary claims purchased
Securities
Held-to-maturity debt securities
Securities with maturities
Japanese government bonds
Municipal bonds
Corporate bonds
Loans and bills discounted (*)
Total

Due from banks
Receivables under resale agreements
Monetary claims purchased
Securities
Held-to-maturity debt securities
Securities with maturities
Japanese government bonds
Municipal bonds
Corporate bonds
Loans and bills discounted (*)
Total

Due from banks
Receivables under resale agreements
Monetary claims purchased
Securities
Held-to-maturity debt securities
Securities with maturities
Japanese government bonds
Municipal bonds
Corporate bonds
Loans and bills discounted (*)
Total

1-3 years

Millions of yen
2021
3-5 years
5-7 years¥———104,177—
104,177—
30,816
41,937895,548¥999,725¥———
190,471—
190,471
63,50043,231
23,722745,139¥935,610

Within 1 year

1-3 years

Millions of yen
2020
3-5 years
5-7 years¥ 670,720
355,5634,447
204,308—
204,308
144,000
19,294
18,616
1,166,894¥2,401,933¥———
224,327—
224,327
91,10045,05338,383
863,408¥1,087,735¥———111,573—
111,573
9,500
27,35828,749653,800¥765,374

Within 1 year

¥1,365,176—
3,911
147,030—
147,030
91,10030,40820,3101,152,470¥2,668,588¥———202,469—
202,469
3,500
63,955962
530,836¥733,306¥———
139,899—
139,899
57,50055,054
4,586
485,150¥625,050

7-10 years¥———
315,186—
315,186
10,00076,9482,459
539,218¥854,404

7-10 years¥———
264,948—
264,948
10,00076,0332,314
516,944¥781,893

Within 1 year

Thousands of U.S. dollars (Note 1-1)2021
1-3 years
3-5 years
5-7 years
7-10 years$12,331,099—
35,326
1,328,064—
1,328,064
822,870
274,663
183,452
10,409,809$24,104,308$———940,989—
940,989—
278,348
378,800
8,089,133$9,030,123$———1,720,449—
1,720,449
573,570
390,488
214,271
6,730,548$8,450,998$———
1,828,823—
1,828,823
31,614
577,680
8,689
4,794,833$6,623,665

Over 10 years

¥—
—
2,911
341,650—
341,650
16,00040,335
12,197
1,024,919¥1,369,481

Over 10 years

¥—
—
3,703
234,992—
234,992
16,00038,414
13,676
950,875¥1,189,571

Over 10 years$— $————26,2932,846,951
3,085,990——
2,846,951
3,085,990
90,326
144,521695,041
364,330
22,211
110,170
4,870,544
9,257,691$7,717,496 $12,369,984(*) Loans and bills discounted on which full repayment is not expected from debtors such as bankrupt obligors, substantially bankrupt obligors and intensively
controlled obligors amounted to ¥57,924 million ($523,204 thousand) and ¥61,656 million at March 31, 2021 and 2020, respectively, and loans and bills with nomaturities amounted to ¥29,928 million ($270,327 thousand) and ¥34,361 million at March 31, 2021 and 2020, respectively.

Note iv. Amounts to be repaid for borrowed money and other interest bearing liabilities

1-3 years

Millions of yen
2021
3-5 years
5-7 years¥328,346————
105,313¥433,660¥ 34,025————
202,138¥236,163

Within 1 year

1-3 years

Millions of yen
2020
3-5 years
5-7 years¥4,877,705
482,131217,618
30,357
198,436
583,010¥6,389,259¥329,435
—
—
—
—
4,625
¥334,060¥ 36,061————
182,157¥218,219

Within 1 year

Deposits (*)
Certificates of deposit
Call money and bills soldPayables under repurchase agreements
Payables under securities lending transactions
Borrowed money
Total

Deposits (*)
Certificates of deposit
Call money and bills soldPayables under repurchase agreements
Payables under securities lending transactions
Borrowed money
Total

34

IYO BANK Annual Report 2021

¥5,598,460
531,969
61,624
199,289
91,604
435,587¥6,918,535¥1,047————238¥1,286¥1,951————261¥2,213

7-10 years¥1,795————236¥2,032

7-10 years¥1,457————203¥1,660Over 10 years

¥ —
—
—
—
—
130
¥130

Over 10 years

¥—
—
—
—
—
120
¥120

Deposits (*)
Certificates of deposit
Call money and bills soldPayables under repurchase agreements
Payables under securities lending transactions
Borrowed money
Total

Within 1 year

Thousands of U.S. dollars (Note 1-1)2021
1-3 years
3-5 years
5-7 years
7-10 years$50,568,692
4,805,067
556,625
1,800,099
827,4223,934,486$62,492,412$2,965,820————
951,251$3,917,080$ 307,334————
1,825,833$2,133,167$ 9,457
—
—
—
—
2,149
$11,615Over 10 years$16,213
—
—
—
—
2,131
$18,354

$—
—
—
—
—
1,174
$1,174(*) Demand deposits are included in “Within 1 year.”(Notes to Securities)*1 In addition to “Securities” on the consolidated balance sheets, this includes “Trading account securities” and trust beneficiary interests in “Monetaryclaims purchased.”
1 Trading securities:
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

2021
Unrealized gains (losses) included in profit
and loss for the fiscal year

¥(16)

2021

2020

$(144)¥(14)

2 Held-to-maturity debt securities:
None
3 Available-for-sale securities:

Securities with unrealized gains
Equity securities
Bonds
Japanese government
bonds
Municipal bonds
Corporate bonds
Other
Total

Millions of yen
2021
Acquisition
Book value
cost
Difference

Millions of yen
2020
Acquisition
Book value
cost
Difference

Thousands of U.S. dollars (Note 1-1)
2021
Acquisition
Book value
cost
Difference¥ 363,242
431,109¥70,440421,561¥292,801
9,547¥ 268,844
561,236¥

64,949548,412¥203,895
12,823$ 3,281,022 $ 636,256
3,894,038
3,807,795$2,644,756
86,234

119,985
226,478
84,645632,551¥1,426,903

116,895
221,733
82,933
584,427¥1,076,429

3,090
4,745
1,712
48,123¥350,473

266,666
198,109
96,461
467,537¥1,297,619

260,898
192,842
94,672415,228¥1,028,591

5,768
5,266
1,788
52,309¥269,028

1,083,777
1,055,866
2,045,686
2,002,827
764,565
749,101
5,713,585
5,278,899$12,888,655 $ 9,722,960

27,91042,85915,463434,676$3,165,685¥

21,489172,815¥ (5,141)(1,526)¥¥26,005
170,547¥ (6,513) $ 147,656 $ 194,101(1,994)
1,547,186
1,560,970$

69,37564,09639,344
278,091
472,396¥1,548,825

(823)
(243)
(459)
(11,379)(18,046)¥332,426

68,342
68,21031,999212,623
400,667¥1,698,286

69,67968,53032,337223,046
419,598¥1,448,189(1,336)619,203626,637(319)
576,750
578,954(338)
351,232
355,378(10,422)2,409,095
2,511,886(18,930)
4,103,956
4,266,967¥250,097 $16,992,611 $13,989,928(7,433)(2,194)(4,145)(102,782)(163,002)$3,002,673

LossesMillions of yen
2020
Amount sold
Gains

Securities with unrealized losses
Equity securities¥ 16,347
Bonds
171,289
Japanese government
bonds
68,552
Municipal bonds
63,852
Corporate bonds
38,885
Other266,711
Total
454,349
Total¥1,881,252

19,491
168,552(46,436)(13,783)

4 Available-for-sale securities sold:Millions of yen
2021
Amount sold
Gains

Equity securities
Bonds
Japanese government bonds
Corporate bonds
Other
Total

¥

4,704
589
—
589
488,156¥493,449¥ 2,7632—
2
8,259¥11,025

¥ 223
—
—
—
7,116
¥7,340¥4,357
37,29436,745548
144,560¥186,212¥3,171
222
221
1
3,245
¥6,638Losses

¥

—
—
—
—
2,770
¥2,770Thousands of U.S. dollars (Note 1-1)
2021
Amount sold
Gains
Losses$42,489
5,320
—
5,320
4,409,321$4,457,131$24,957
18—
18
74,600$99,584$ 2,014———64,276$66,299

IYO BANK Annual Report 2021

35

5 Securities impaired
Available-for-sale securities which have readily determinable fair values
are written down to the fair value, and the difference between theacquisition cost and the fair value is treated as loss for the fiscal year
(impairment (devaluation)) if the fair value has significantly deteriorated
from the acquisition cost, unless it is deemed that there is a possibilityof a recovery in the fair value. The amount of impairment (devaluation)
was ¥16 million ($144 thousand), including ¥16 million ($144 thousand)of equity securities at March 31, 2021, and ¥339 million, including ¥339
million of equity securities at March 31, 2020. A security is deemed tohave “significantly deteriorated” if the fair value has decreased to 50%
or less of the acquisition cost. If the fair value exceeds 50% but is 70%
or less of the acquisition cost, the security may be deemed “significantly
deteriorated” considering the change in the quoted market price duringa certain period in the past, the related business performance and otherfactors.

(Notes to Net Unrealized Holding Gains (losses) on Securities)
Unrealized holding gains on securities were as follows:
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Valuation gains
Available-for-salesecurities
Other money held in
trust
Deferred tax liabilities
Net unrealized holding
gains on securities(before adjustment forminority interests)
Noncontrolling interests
Net unrealized holding
gains on securities

2021

2020

2021

¥ 332,426¥250,097$3,002,673

78(102,228)260(76,747)704(923,385)

230,276(7,938)

173,610(6,835)2,079,992(71,700)¥ 222,338¥166,775$2,008,291(Notes to Money Held in Trust)
The following table summarizes the book values (fair values) andamounts of net unrealized gains and losses for money held in trust
included in profit and loss for the fiscal year.
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

2021
Money held in trust forinvestment
Book value (fair value)
Amount of net
unrealized gain (loss)
included in profit andloss for the fiscal year
Other money held in trustBook value (fair value)
Acquisition cost
Difference
Unrealized gains
Unrealized losses

2021

2020

¥

—

¥2,992

$

—

¥

—

¥

$

—

6,427
6,349
78
78
—

8
4,081
3,821
260
260
—

58,052
57,348704
704—(Notes to Derivative Transactions)
At March 31, 2021
1 Derivative transactions to which hedge accounting was not applied
Derivative transactions to which hedge accounting was not applied are set forth in the tables below.
These items do not reflect the market risk of the derivative transactions themselves.
(1) Interest rate contracts

Contract
amountOver-the-counter transactions:Swaps:
Receive fixed rate and pay
floating rate
Receive floating rate and pay
fixed rate
Total

Millions of yen
2021
Portionmaturing over
one year
Fair value

Recognized
gains(losses)Thousands of U.S. dollars (Note 1-1)
2021
PortionRecognizedContract
maturing overgains
amountone year
Fair value(losses)¥81,450¥76,292¥1,619¥1,619$735,705$689,115$14,623$14,623

81,450—76,292
—

(669)
¥ 950

(669)
¥ 950

735,705—

689,115—(6,042)$ 8,580(6,042)$ 8,580

The above transactions are measured at fair value, and recognized gains (losses) are charged to the consolidated statements of income.
The fair value of over-the-counter transactions is calculated based on the discounted present value and option pricing models.

36

IYO BANK Annual Report 2021

(2) Currency and foreign exchange contracts

Contract
amountOver-the-counter transactions:
Currency swaps
Forward exchange contracts:
Sell
Buy
Currency options:
Sell
Buy
Total

Millions of yen
2021
Portionmaturing over
one year
Fair value¥389,160¥362,590¥

267,668
226,168

135,092
29,94280,82280,822—53,07053,070—Thousands of U.S. dollars (Note 1-1)
2021
PortionRecognizedContract
maturing overgains
amountone year
Fair value(losses)

Recognized
gains(losses)

150

¥

150

$3,515,129$3,275,133$ 1,354$ 1,354(3,055)
4,286(3,055)4,286

2,417,740
2,042,886

1,220,233
270,454(27,594)
38,713(27,594)
38,713(2,462)
2,462¥ 1,381378
273¥ 2,034

730,033
730,033—

479,360
479,360—(22,238)
22,238$ 12,474

3,414
2,465
$ 18,372

The above transactions are measured at fair value, and recognized gains (losses) are charged to the consolidated statements of income.
The fair value of over-the-counter transactions is calculated based on the discounted present value.
(3) Credit derivatives

Contract
amountMillions of yen
2021
Portionmaturing over
one year
Fair value

Thousands of U.S. dollars (Note 1-1)
2021
PortionRecognizedContract
maturing overgains
amountone year
Fair value(losses)

Recognized
gains(losses)Over-the-counter transactions:Credit default swaps
Sell
Buy
Total

¥1,000——¥1,000
—
—

¥ (2)
—
¥ (2)

¥ (2)
—
¥ (2)

$9,032——$9,032
—
—

$(18)
—
$(18)

$(18)
—
$(18)

The above transactions are measured at fair value, and recognized gains (losses) are charged to the consolidated statements of income.
The fair value of over-the-counter transactions is calculated based on the discounted present value.
(4) Others

Contract
amountMillions of yen
2021
Portionmaturing over
one year
Fair value

Thousands of U.S. dollars (Note 1-1)
2021
PortionRecognizedContract
maturing overgains
amountone year
Fair value(losses)

Recognized
gains(losses)Over-the-counter transactions:
Earthquake derivatives
Sell
Buy
Total

¥1,500
1,500
—

¥—
—
—

¥(27)
27
¥ —

¥—
—
¥—

$13,548
13,548—$———$(243)
243
$ —

$—
—
$—

Transactions above for which the values were not readily determinable are stated at cost.

2 Derivative transactions to which hedge accounting was applied
Derivative transactions to which hedge accounting was applied are set forth in the tables below.
These items do not reflect the market risk of the derivative transactions themselves.
(1) Interest rate contracts

Hedgeditems
Method of hedge accounting
Deferral hedge
methodInterest rate swaps
Loans
Receive fixed rate
and pay floating rate
Receive floating rate
and pay fixed rate
Total—

Millions of yen
2021
Portionmaturing over
one yearContract
amountFair value

—

—

—

¥302,523—¥302,523—¥(722)¥(722)

Hedgeditems—

Thousands of U.S. dollars (Note 1-1)
2021
PortionContract
maturing overamountone year
Fair value

—

—

—

$2,732,571—$2,732,571—$(6,521)$(6,521)

1 The above transactions are accounted for with the deferral hedge accounting treatment stipulated in JICPA Industry-specific Committees Guidance No, 24, October 8,
2020, “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in the Banking Industry.”
2 The fair value of over-the-counter transactions is calculated based on the discounted present value and option pricing models.

IYO BANK Annual Report 202137

(2) Currency and foreign exchange contracts

Method of hedge accounting
Deferral hedge method
Currency swaps
Fund related swaps
Total

Hedged items

Foreign currency
monetary assets

Contract
amount¥218,488
3,120—

Millions of yen
2021
Portionmaturing over
one year¥195,039——

Fair value¥(6,392)(52)¥(6,444)

Thousands of U.S. dollars (Note 1-1)
2021
PortionContract
maturing overamountone year
Fair value$1,973,516
28,181—$1,761,710——$(57,736)(469)$(58,206)

The above transactions are accounted for with the deferral hedge accounting treatment stipulated in JICPA Industry-specific Committees Guidance No.
25, October 8, 2020, “Treatment for Accounting and Auditing of Accounting for Foreign Currency Transactions in the Banking Industry.”
The fair value of over-the-counter transactions is calculated based on the discounted present value.
At March 31, 2020
1 Derivative transactions to which hedge accounting was not applied
Derivative transactions to which hedge accounting was not applied are set forth in the tables below.
These items do not reflect the market risk of the derivative transactions themselves.
(1) Interest rate contracts

Contract
amountOver-the-counter transactions:Swaps:
Receive fixed rate and pay
floating rate
Receive floating rate and pay
fixed rate
Total

Millions of yen
2020
Portionmaturing over
one year
Fair value

Recognized
gains(losses)¥61,085¥60,306¥ 2,149¥ 2,149

61,085—60,306—¥(1,523)625¥(1,523)625

The above transactions are measured at fair value, and recognized gains (losses) are charged to the consolidated statements of income.
The fair value of over-the-counter transactions is calculated based on the discounted present value and option pricing models.
(2) Currency and foreign exchange contracts

Contract
amountOver-the-counter transactions:
Currency swaps
Forward exchange contracts:
Sell
Buy
Currency options:
Sell
Buy
Total

Millions of yen
2020
Portionmaturing over
one year
Fair value¥

174

Recognized
gains(losses)¥439,183¥355,276¥

174

283,411404,592

109,966
21,795(3,398)166(3,398)166

80,06080,060—55,62555,625—(2,340)2,340¥(3,057)584
72¥(2,399)

The above transactions are measured at fair value, and recognized gains (losses) are charged to the consolidated statements of income.
The fair value of over-the-counter transactions is calculated based on the discounted present value.
(3) Credit derivatives

Contract
amountMillions of yen
2020
Portionmaturing over
one year
Fair value

Recognized
gains(losses)Over-the-counter transactions:Credit default swaps
Sell
Buy
Total

¥1,000——¥1,000
—
—

¥ (8)
—
¥ (8)

¥ (8)
—
¥ (8)

The above transactions are measured at fair value, and recognized gains (losses) are charged to the consolidated statements of income.
The fair value of over-the-counter transactions is calculated based on the discounted present value.

38

IYO BANK Annual Report 2021

(4) Others
Millions of yen
2020
Portionmaturing over
one year
Fair value

Contract
amountRecognized
gains(losses)Over-the-counter transactions:
Earthquake derivatives
Sell
Buy
Total

¥2,440
2,440
—

¥—
—
—

¥(40)
40
¥—

¥—
—
¥—

Transactions above for which the values were not readily determinable are stated at cost.

2 Derivative transactions to which hedge accounting was applied
Derivative transactions to which hedge accounting was applied are set forth in the tables below.
These items do not reflect the market risk of the derivative transactions themselves.
(1) Interest rate contracts

Hedgeditems
Method of hedge accounting
Deferral hedge
methodInterest rate swaps
Loans
Receive fixed rate
and pay floating rate
Receive floating rate
and pay fixed rate
Total—

Millions of yen
2020
Portionmaturing over
one yearContract
amountFair value

—

—

—

¥100,494—¥100,494
—

¥(98)
¥(98)

1 The above transactions are accounted for with the deferral hedge accounting treatment stipulated in JICPA Industry-specific Committees Guidance No, 24, October 8,
2020, “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in the Banking Industry.”
2 The fair value of over-the-counter transactions is calculated based on the discounted present value and option pricing models.

(2) Currency and foreign exchange contracts

Method of hedge accounting
Deferral hedge method
Currency swaps
Fund related swaps
Total

Hedged item

Foreign currency
monetary assets

Contract
amount¥149,709
213—

Millions of yen
2020
Portionmaturing over
one year¥127,728——

Fair value¥1,062(3)¥1,059The above transactions are accounted for with the deferral hedge accounting treatment stipulated in JICPA Industry-specific Committees Guidance No.
25, October 8, 2020, “Treatment for Accounting and Auditing of Accounting for Foreign Currency Transactions in the Banking Industry.”
The fair value of over-the-counter transactions is calculated based on the discounted present value.

(Notes to Retirement Benefits)
1 Outline of retirement and severance benefits plans
The retirement benefit plans of the Bank consist of a defined benefit
corporate pension fund plan and a retirement lump-sum grant system.
Extra retirement benefits may be paid upon the retirement of employees.
In addition, the Bank set up a retirement benefit trust. On April 1, 2014,
the Bank transformed its corporate pension fund plan to a cash balance
plan and established a defined contribution pension plan. Consolidated
subsidiaries use the simplified method in calculating net defined benefit
liability and retirement benefit expenses for their retirement lump-sum
grant systems.

2 Defined benefit plan
(1) Reconciliation of retirement benefit obligations between the
beginning and the end of the period
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Retirement benefit
obligations at the
beginning of the period
Service cost
Interest cost
Actuarial differences
incurred
Retirement benefits paid
Prior service cost
Retirement benefit
obligations at the end of
the period

2021

2020

2021

¥72,032
2,362
170¥73,851
2,402
116$650,636
21,335
1,535(1,259)(3,429)—(981)(3,086)—(11,372)(30,972)—

69,87672,032$631,162

IYO BANK Annual Report 202139

(2) Reconciliation of pension assets between the beginning andthe end of the period
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

2021
Pension assets at the
beginning of the period
Expected return on
pension assets
Actuarial differences
incurred
Employer’s contributions
Retirement benefits paid
Pension assets at the endof the period(5) Remeasurements of defined benefit plans
The breakdown of items included in remeasurements of defined benefit
plans (before applicable tax effects) was as follows:

2021

2020

¥78,279¥78,800$707,063

1,042

1,051

9,411

12,0032,726(2,301)(2,052)
2,722(2,242)

108,418
24,622(20,784)

91,75078,279828,741

Millions of yen

Prior service cost
Actuarial differences
Total

Retirement benefit
obligations of thenon-savings plan
Net liabilities and assets
recorded on the
consolidated balance sheets
Net defined benefit liability
Net defined benefit asset
Net liabilities and assets
on the consolidatedbalance sheets

Thousands of
U.S. dollars(Note 1-1)

2021

2020

2021

¥ 69,460(91,750)(22,289)¥ 71,619(78,279)(6,660)$ 627,404(828,741)(201,327)

415

413

3,748

(21,874)
11,326(33,201)(6,247)
12,487(18,734)(197,579)
102,303(299,891)(21,874)(6,247)(197,579)(Note) Pension assets include assets in the retirement benefit trust.

(4) Retirement benefit cost and its breakdown
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Service cost
Interest cost
Expected return on
pension assets
Recognized actuarial
differences
Amortization of priorservice cost2020
¥ (597)(1,459)(2,056)2021¥ 2,171170

2020¥ 2,209116

2021$19,609
1,535(1,042)(1,051)(9,411)

181

(388)

1,634

(597)
883

(597)
289

(5,392)
7,975(Note 1) Retirement benefit costs of consolidated subsidiaries using thesimplified method are included in “Service cost.”(Note 2) Employee contribution to the corporate pension fund is deducted from“Service cost.”

2021$ (5,392)
121,443
116,050

Thousands of
U.S. dollars(Note 1-1)

Millions of yen(3) Reconciliation of retirement benefit obligations and pension
assets at the end of the period to net defined benefit liability
and net defined benefit asset in the consolidated balance
sheetsRetirement benefit
obligations of thesavings plan
Pension assets

2021¥ (597)
13,445
12,848(6) Remeasurements of defined benefit plans
The breakdown of items included in remeasurements of defined benefit
plans (before applicable tax effects) was as follows:(Note) Pension assets include assets in the retirement benefit trust.

Millions of yen

Thousands of
U.S. dollars(Note 1-1)

Unrecognized prior service
cost
Unrecognized actuarial
differences
Total

2021

2020

2021

¥ (2,059)¥(2,656)$ (18,598)(9,853)(11,912)

3,592
935

(88,998)(107,596)

2021
46.9%
46.3%
6.8%
100.0%

2020
52.3%
40.1%
7.6%
100.0%(7) Pension assets① Pension asset portfolio
Bonds
Equity securities
Other
Total

(Note) 33.4% of the total pension assets as of March 31, 2021 (29.8% as ofMarch 31, 2020) represent assets in the retirement benefit trust for the
corporate pension fund, 4.0% of which as of March 31, 2021 (3.6% asof March 31, 2020) corresponds to the lump-sum grant system.

②	Determination of the long-term expected rate of return on pension
assetsThe long-term expected rate of return on pension assets is determinedbased on the average investment yield on the pension assets for the past
three years. When the average rate is below 1.25% or above 2.0%, it isstated as 1.25% and 2.0%, respectively.
(8) Actuarial assumptions
The weighted average rate for assumptions used for the actuarial
computation of the retirement benefit obligations for the years ended
March 31, 2021 and 2020 were as follows:
2021
2020
Discount rates
Retirement lump-sum
grant system
0.10%
0.00%
Corporate pension
fund plans
0.40%
0.30%
Long-term expected
return on assets
Pension assets ofcorporate pension fund
1.37%
2.00%
Retirement benefit trust(Retirement lump-sum
grant system andcorporate pension
fund plans)
0.00%
0.00%
(Note) A point system is applied to the substantive portion of the retirement
lump-sum grant system and a cash balance plan to defined benefit
corporate pension fund plans, respectively. The “Estimate rate of salary
increase” is not disclosed due to the insignificant impact it would haveon the calculation of retirement benefit obligations.

40

IYO BANK Annual Report 2021

3 Defined contribution plan
The amount of required contribution by the Bank to the defined
contribution plans were ¥334 million ($3,016 thousand) and ¥338
million at March 31, 2021 and 2020, respectively.
(Notes to Stock Options)
1 Outline of stock options and changes
At the 115th Ordinary General Meeting of Shareholders held on Jun. 28, 2018, the Bank abolished compensation type stock options and introduced ashare-based payment system using the trust.
In line with the introduction of this system, the Bank will not grant new stock options. However, the unexercised stock acquisition rights alreadygranted as stock options will continue to exist.
(1) Outline of stock options
2017
2016
2015
2014
2013
2012
2011
Stock Options
Stock Options
Stock Options
Stock Options
Stock Options
Stock Options
Stock Options
Title and number
Directors of the
Directors of the
Directors of the
Directors of the
Directors of the
Directors of the
Directors of theof grantees
Bank: 8
Bank: 7
Bank: 7
Bank: 16
Bank: 18
Bank: 17
Bank: 17
Executive Officers Executive Officers Executive Officers Executive Officersof the Bank: 12of the Bank: 15of the Bank: 14of the Bank: 4
Number of stock
Common shares: Common shares: Common shares: Common shares: Common shares: Common shares: Common shares:
options (*)
140,900
184,600
79,500123,100
140,900
199,500
156,800
Grant dateJuly 14, 2017
July 15, 2016
July 15, 2015
July 16, 2014
July 16, 2013
July 17, 2012
July 15, 2011
Conditions for vesting
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
Requisite service
period
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
Exercise period
July 15, 2017 to July 16, 2016 to July 16, 2015 to July 17, 2014 to July 17, 2013 to July 18, 2012 to July 16, 2011 toJuly 14, 2047
July 15, 2046
July 15, 2045
July 16, 2044
July 16, 2043
July 17, 2042
July 15, 2041(*) Reported in terms of shares of stock(2) Stock options granted and changes
The table below represents stock options outstanding at the year-end and the number of stock options is converted into the number of stock.
① Number of stock options
2017
Stock Options
shares

2016
Stock Options
shares2015
Stock Options
shares2014
Stock Options
shares2013
Stock Options
shares2012
Stock Options
shares2011
Stock Options
shares90,600——9,600
81,00089,800——11,90077,90035,200——5,300
29,90042,100——3,900
38,20031,900———31,90046,800———46,80027,800———27,8009,000
9,600
18,600——

11,10011,90023,000
—
—

4,900
5,300
10,200
—
—

7,700
3,900
11,600
—
—

5,200
—
5,200
—
—

7,600
—
7,600
—
—

6,300
—
6,300
—
—

Average exercise
price

2017
Stock Options
Yen (U.S. dollars)¥ 1 ($0)
per share¥573 ($5)
per share

2016
Stock Options
Yen (U.S. dollars)¥ 1 ($0)
per share¥573 ($5)
per share2015
Stock Options
Yen (U.S. dollars)¥
1 ($0)
per share¥    573 ($5)
per share2014
Stock Options
Yen (U.S. dollars)¥ 1 ($0)
per share¥573 ($5)
per share2013
Stock Options
Yen (U.S. dollars)¥ 1 ($0)
per share¥573 ($5)
per share2012
Stock Options
Yen (U.S. dollars)¥ 1 ($0)
per share¥573 ($5)
per share

2011
Stock Options
Yen (U.S. dollars)¥ 1 ($0)
per share¥573 ($5)
per share

Fair value at the
grant date

¥867 ($7)
per share¥601 ($5)
per share¥1,473 ($13)
per share¥989 ($8)
per share¥918 ($8)
per share¥550 ($4)
per share¥704 ($6)
per share

Before vesting
Previous fiscal
year-end
GrantedForfeited
VestedOutstanding
After vesting
Previous fiscal
year-end
VestedExercised
Forfeited
Exercisable② Price information

Exercise price2 Method of estimating the number of stock options vested
Only the actual number of forfeited stock options is reflected because it is difficult to rationally estimate the actual number of stock options that will be
forfeited in the future.

IYO BANK Annual Report 2021

41

(Notes to Income Taxes)
1 Significant components of deferred tax assets and liabilities
were as follows:
Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Deferred tax assets:
Excess reserve for loan
lossesImpairment loss on land
Accrued employees’
bonuses
Reserve for losses on
repayments on
dormant bank accounts
Excess depreciation
Write-down ofsecurities
Net defined benefit
liability
Other
Valuation reserve
Total deferred
tax assets
Deferred tax liabilities:
Unrealized holding
gains on securities
Retirement benefit
asset
Deferred gains on real
property
Other
Total deferred
tax liabilities
Net deferred tax liabilities:

2020

2021

¥ 15,910
622¥ 13,900
648$ 143,708
5,618

546

504

4,931

503
497

730
548

4,543
4,489

399

440

3,604

(3) Legal form of business combination
Acquisition of shares from non-controlling shareholders

—
2,319
(924)

774
1,933
(937)

—
20,946(8,346)(4) The Name of company
The names remain the same after the business combination.

19,875

18,543

179,523¥(102,138)¥(76,674)$(922,572)(3,873)—(34,983)

(896)
—

(898)
(347)

(8,093)—(106,908)¥ (87,032)(77,921)¥(59,377)(965,658)$(786,125)

2021(Adjustments)
Entertainment expenses
and other expenses notdeductible permanently
for income tax purposes
Dividend income and otherincome excluded
permanetly for income tax
purposes
Valuation reserve
Other
Effective income tax rate

—

2020
30.5%

—

0.4%

—
—
—
—

(1.4%)(0.5%)(0.4%)
28.5%

For the fiscal year ended March 31, 2021, a reconciliation of thestatutory tax rate and the effective income tax rate is not stated as thedifference between the two was less than 5% of the satutory tax rate.

42

IYO BANK Annual Report 2021

1 Summary of transaction(1) Combined entity’s name and business
The Iyogin Credit Guaranty Company Limited (financial guarantees forhome loans, consumer loans, etc.)
Iyogin Capital Company Limited (stock and bond investment, investment
fund operation, etc.)
Iyogin DC Card Co., Ltd. (credit card services, debt guarantees, etc.)

2021

2 A reconcilliation of the statutory tax rate and effective tax
rate for the years ended March 31, 2021 and 2020 were as
follows:
Statutory tax rate

(Notes to Business Combinations, etc.)
Transactions under common control
Additional acquisition of shares in subsidiaries(2) Date of business combination
August 24, 2020 to September 28, 2020

(5) Other matters concerning the outline of transaction
The Bank acquired a portion of the shares held by non-controllingshareholders in order to strengthen governance and group management.

2 Accounting method
In accordance with the “Business Combination Standards” (ASBJ
Statement No. 21, Jan. 16, 2019) and the “Guidelines for the
Application of the Business Combination Standards and the BusinessSeparation Standards” (ASBJ Statement Application Guideline No. 10,
Jan. 16, 2019), we treat trading with entities under common control thesame as trading with non-controlling shareholders.
3 Additional acquisition of shares in subsidiary
Consideration paid for acquisition : Cash and due from banks in theamount of ¥8,921 million ($80,579 thousand)4 Changes in portion held by the Bank in connection with thetransactions with non-controlling interests(1) Main reasons for changes in capital surplus
Additional acquisition of subsidiary’s share(2) Increase in capital surplus due to transactions with noncontrolling interest¥5,761 million ($52,036 thousand)(Notes to Asset Retirement Obligations)
The total amount of asset retirement obligations is not significant and istherefore omitted.
(Notes to Real Estate for Rent)
The total amount of real estate for rent is not significant and is therefore
omitted.

(Notes to Segment Information)
1 Summary of reportable segments
Reportable segments are components of the Bank and its consolidated subsidiaries for which separate financial information is available and is subject toperiodic examination by the Board of Directors to determine the allocation of management resources and assess performances.
The Bank and 16 consolidated subsidiaries (16 consolidated subsidiaries as of March 31, 2020) are engaged mainly in the financial services businessthat includes commercial banking services and leasing services. Therefore, the Bank and its consolidated subsidiaries’ reportable segments comprise‘Commercial Banking’ and ‘Leasing’ and are distinguished by the financial services provided. ‘Commercial Banking’ includes deposit services, lending
services, securities investment services and exchange services. ‘Commercial Banking’ represents the Bank’s banking services as well as the consolidated
subsidiaries’ business support services, credit guarantee services, credit card services, securities trading services and fund management services. ‘Leasing’
includes leasing services by Iyogin Leasing Company Limited, one of the consolidated subsidiaries.
2 Methods used to calculate ordinary income, profit and loss, amounts of assets, debt and other items by reportable segment
The accounting policies described int the Note in (Basis of Presenting Consolidated Financial Statements) have been adopted for the reportablesegments. Reportable segment profit corresponds to ordinary profits. Ordinary income arising from intersegment transactions is based on arm’s length
prices.
3 Information about reported ordinary income, profits and losses, amounts of assets, debts and other items
Segment information as of and for the years ended March 31, 2021 and 2020 were as follows:
Millions of yen
2021
Reportable segments
Commercial
Banking
Leasing

Ordinary income
Customers
Intersegment
Total
Segment profit
Segment assets
Segment debt
Other items
Depreciation
Interest income received
Interest expense paid
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary losses
Losses on disposal of fixed assets
Impairment loss
Provision of reserve for financial products
transaction liabilities
Tax expense
Increase in tangible fixed assets
and intangible fixed assets¥ 104,986
598¥ 105,584¥ 25,093¥8,517,978¥7,797,071¥16,692424¥17,117¥ 583¥65,562¥40,009

¥

¥

5,130
75,986
4,358
34
(34)
406
(206)
(200)

Total

¥ 121,678
1,023¥ 122,702¥ 25,677¥8,583,541¥7,837,080

29 ¥
119
115
—
—
0
(0)
—

5,160
76,106
4,474
34
(34)
406
(206)
(200)

—
7,201

—
196

7,506

89

Other
businesses¥ 3,138
1,968¥ 5,107¥ 489¥15,304¥ 8,462¥

Total

Adjustments¥ 124,817
2,992¥ 127,809¥ 26,167¥8,598,846¥7,845,543¥

Consolidated
total—(2,992)¥ (2,992)¥5¥(48,106)¥(36,044)¥ 124,817—¥ 124,817¥ 26,172¥8,550,739¥7,809,498

¥

¥

46 ¥
3
6
—
—
0
(0)
—

5,206
76,110
4,481
34
(34)
407
(206)
(200)

(117)
(118)
(105)
—
—
—
—
—

5,089
75,992
4,376
34
(34)
407
(206)
(200)

—
7,397

(0)
159

(0)
7,556

—
(7)

(0)
7,549

7,595

36

7,631

(92)

7,539

Notes:
1. Ordinary income is presented as the counterpart of sales of companies in other industries. The difference between ordinary income and operating income in the
consolidated statement of income is in “Adjustments.”
2. “Other businesses” includes software development and information processing not included in the reportable segments.
3. Adjustments are as below.
(1) Adjustment of segment profit includes eliminations of intersegment transactions of ¥5 million ($45 thousand).
(2) Adjustment of segment assets includes eliminations of intersegment transactions of negative ¥48,106 million ($434,522 thousand).
(3) Adjustment of segment debt includes eliminations of intersegment transactions of negative ¥36,044 million ($325,571 thousand).
(4) Eliminations of intersegment transactions include adjustment of depreciation of negative ¥117 million ($1,056 thousand), adjustment of interest income receivedof negative ¥118 million ($1,065 thousand), adjustment of interest expense paid of negative ¥105 million ($948 thousand), adjustment of tax expense ofnegative ¥7 million ($63 thousand) and adjustment of increase in tangible fixed assets and intangible fixed assets of negative ¥92 million ($830 thousand).
4. Segment profit is adjusted to ordinary income in the consolidated statement of income.

IYO BANK Annual Report 2021

43

Millions of yen
2020
Reportable segments
Commercial
Banking
Leasing

Ordinary income
Customers
Intersegment
Total
Segment profit
Segment assets
Segment debt
Other items
Depreciation
Interest income received
Interest expense paid
Extraordinary income
Gain on disposal of noncurrent assets
Extraordinary losses
Losses on disposal of fixed assets
Impairment loss
Provision of reserve for financial products
transaction liabilities
Tax expense
Increase in tangible fixed assets and intangible
fixed assets

Total

Other
businesses¥ 107,088
655¥ 107,743¥ 28,530¥7,769,824¥7,114,784¥16,905454¥17,359¥ 709¥61,069¥39,954¥ 123,993
1,109¥ 125,102¥ 29,239¥7,830,894¥7,154,739¥ 2,513
1,871¥ 4,384¥ 124¥12,515¥ 6,002

¥

¥

¥

¥

4,928
79,596
13,207
39
(39)
986
(127)
(858)

25
120
120
—
—
—
—
—

4,954
79,716
13,328
39
(39)
986
(127)
(858)

Total

Adjustments

Consolidated
total

¥—
(2,980)¥ (2,980)¥48¥(47,855)¥(37,035)¥ 126,506—¥ 126,506¥ 29,413¥7,795,554¥7,123,706¥ 126,506
2,980¥ 129,487¥ 29,364¥7,843,410¥7,160,742

74 ¥
4
5
—
—
73
(0)
(72)

5,029
79,721
13,333
39
(39)
1,060
(128)
(931)

¥

(140) ¥
(119)
(106)
—
—
—
—
—

4,888
79,601
13,226
39
(39)
1,060
(128)
(931)

—
7,805

—
234

—
8,039

(0)
56

(0)
8,096

—
3

(0)
8,099

5,695

4

5,699

61

5,761

(79)

5,682

Notes:
1. Ordinary income is presented as the counterpart of sales of companies in other industries. The difference between ordinary income and operating income in the
consolidated statement of income is in “Adjustments.”
2. “Other businesses” includes software development and information processing not included in the reportable segments.
3. Adjustments are as below.
(1) Adjustment of segment profit includes eliminations of intersegment transactions of ¥48 million.
(2) Adjustment of segment assets includes eliminations of intersegment transactions of negative ¥47,855 million.
(3) Adjustment of segment debt includes eliminations of intersegment transactions of negative ¥37,035 million.
(4) Eliminations of intersegment transactions include adjustment of depreciation of negative ¥140 million, adjustment of interest income received of negative ¥119
million, adjustment of interest expense paid of negative ¥106 million, adjustment of tax expense of ¥3 million and adjustment of increase in tangible fixed assets
and intangible fixed assets of negative ¥79 million.
4. Segment profit is adjusted to ordinary income in the consolidated statement of income.
Thousands of U.S. dollars (Note 1-1)
2021
Reportable segments
Commercial
Banking
Leasing

Ordinary income
Customers$ 948,297
Intersegment
5,401
Total
$ 953,698
Segment profit$ 226,655
Segment assets$76,939,553
Segment debt
$70,427,883
Other items
Depreciation$
46,337
Interest income received
686,351
Interest expense paid
39,364Extraordinary income
307
Gain on disposal of noncurrent assets(307)
Extraordinary losses
3,667
Losses on disposal of fixed assets(1,860)
Impairment loss
(1,806)
Provision of reserve for financial products
transaction liabilities—
Tax expense
65,043
Increase in tangible fixed assets and intangible
fixed assets
67,79844

IYO BANK Annual Report 2021

Total

Other
businesses

Total

Adjustments

Consolidated
total$150,772 $ 1,099,069
3,829
9,240
$154,611 $ 1,108,319$ 5,266 $ 231,930$592,195 $77,531,758$361,385 $70,789,269$ 28,344 $ 1,127,422
17,77627,025$ 46,129 $ 1,154,448$ 4,416 $ 236,356$138,235 $77,670,002$ 76,433 $70,865,712— $ 1,127,422(27,025)—$ (27,025) $ 1,127,422$
45 $ 236,401$(434,522) $77,235,471$(325,571) $70,540,131

$

$

$

261 $
1,074
1,038
—
—
0
(0)
—

46,608687,435
40,411
307
(307)
3,667
(1,860)(1,806)

415 $
27
54
—
—
0
(0)
—

—
1,770

—
66,814

(0)
1,436

803

68,602

325

47,023
687,471
40,475
307
(307)
3,676
(1,860)(1,806)$(1,056) $(1,065)
(948)
—
—
—
—
—

45,966
686,405
39,526
307
(307)
3,676
(1,860)(1,806)(0)
68,250—(63)(0)
68,18768,927(830)

68,096

(4) Related information
Information by service
Millions of yen
2021
Loans

¥52,795

Ordinary income customers

Securities
investments

Otherbusinesses

Lease¥36,895¥16,692¥18,434

Total¥124,817

Millions of yen
2020
Loans

Ordinary income customers¥58,321

Securities
investments

Otherbusinesses

Lease¥31,156¥16,905¥20,123

Total¥126,506

Thousands of U.S dollars (Note 1-1)
2021
Loans

$476,876

Ordinary income customers

Securities
investments

Otherbusinesses

Lease$333,258$150,772$166,507

Total$1,127,422

Millions of yen
2021
Reportable segments
Commercial
Banking
Leasing¥200

Impairment loss

¥—

Other
businesses

Total

¥200

¥—

Total

¥200

Millions of yen
2020
Reportable segments
Commercial
Banking
Leasing

Impairment loss

¥858

¥—

Other
businesses

Total

¥858

¥72

Total

¥931

(Note) “Other businesses” were all related to the security businesses.
Thousands of U.S dollars (Note 1-1)
2021
Reportable segments
Commercial
banking
Leasing$1,806

Impairment loss

$—

Other
businesses

Total$1,806

Total$—$1,806

Account

Outstandingbalance(Millionsof yen)(Notes to Related Party Transactions)
For the year ended March 31, 2021
(1) Transactions between the Bank and related parties.
Directors or major individual stockholders

Type

Name

Companies inwhich a majorityof voting rights
Ability Center,is owned by aInc
director or the
director’s close
relatives

Type

Name

Companies inwhich a majorityof voting rights
Ability Center,is owned by aInc
director or the
director’s close
relatives

Capital(Millions ofLocation
yen)

Ehime

¥50

Capital(Thousandsof U.S.
Location dollars)

Ehime

$451

Business

Temporarystaffing

Business

Temporarystaffing

Ownerships ofvoting rights (%) Relationship Transactions—

Temporary Temporary
staffing
staffing

Transaction
amount(Millionsof yen)¥2

Transaction
amount(Thousands
Ownerships ofof U.S.
voting rights (%) Relationship Transactions
dollars)—

Temporary Temporary
staffing
staffing$18—

Account—¥—

Outstandingbalance(Thousandsof U.S.
dollars)$—(Notes)1 The conditions of the above transactions were the same as these of arm’s length transactions.
2 Ms. Junko Miyoshi, a director and Supervisory Committee member, has a close relative who owns a majority of the voting rights of Ability Center, Inc.

IYO BANK Annual Report 202145

(2) Transactions between consolidated subsidiaries of the Bank and related parties.
Directors or major individual stockholders

Type

Name

Capital(Millions ofLocationyen)Companies inwhich a majorityof voting rights
Ability Center,is owned by aInc
director or the
director’s close
relatives

Type

Name

Ehime

¥50

Business

Ownerships ofvoting rights (%) Relationship Transactions

Temporarystaffing

Direct Temporary Temporary
19.2% holding
staffing
staffing

Capital(Thousandsof U.S.
Location dollars)Companies inwhich a majorityof voting rights
Ability Center,is owned by aInc
director or the
director’s close
relatives

Ehime

$451

Business

Temporarystaffing

Transaction
amount(Millionsof yen)¥26

Account

Otherliabilities

Transaction
amount(Thousands
Ownerships ofof U.S.
voting rights (%) Relationship Transactions
dollars)

Account

Direct Temporary Temporary
19.2% holding
staffing
staffing

Otherliabilities$234

Outstandingbalance(Millionsof yen)¥—Outstandingbalance(Thousandsof U.S.
dollars)$—(Notes)1. The conditions of the above transactions were the same as those of arm’s length transactions.
2. Ms. Junko Miyoshi, a director and Supervisory Committee member, has a close relative who owns a majority of the voting rights of Ability Center, Inc.

For the year ended March 31, 2020
(1) Transactions between the Bank and related parties.
Directors or major individual stockholders

Type

Companies inwhich a majorityof voting rights
is owned by adirector or the
director’s close
relatives

Name

Capital(Millions
Location of yen)

Ability Center,
Inc

Ehime

Chuo Doryoku,
Inc.
Tatsumi Kogyo,
Inc.

Business¥50

Temporarystaffing

Ehime

50

Oita

10

Transaction
amountOwnerships of(Millionsvoting rights (%) Relationship Transactionsof yen)—Temporarystaffing

Temporarystaffing¥ 2

Construction—

Banking

Loaing25

Construction—

Banking

LoaingAccount—

Outstandingbalance(Millionsof yen)¥—Loansand bills
discounted
Loans
25 and bills
discounted—
20(Notes)1. The conditions of the above transactions were the same as these of arm’s length transactions.
2. Loan transaction amounts were reported at the average balance for the period.
3. Ms. Junko Miyoshi, a director and Supervisory Committee member, has a close relative who owns a majority of the voting rights of Ability Center, Inc.
4. Ms. Junko Miyoshi, a director and Supervisory Committee member, has a close relative who owns a majority of the voting rights of parent of Chuo Doryoku, Inc.
and Tatsumi Kogyo, Inc.

(2) Transactions between consolidated subsidiaries of the Bank and related parties.
Directors or major individual stockholders

Type

Name

Companies inwhich a majorityof voting rights
is owned by adirector or the
director’s close
relatives

Ability Center,
Inc

Capital(Millions
Location of yen)

Ehime

¥50

Business

Ownerships ofvoting rights (%) Relationship Transactions

Temporarystaffing

Direct Temporary
19.2% holding
staffing

Temporarystaffing

Transaction
amount(Millionsof yen)¥28

Account

Otherliabilities(Notes)1. The conditions of the above transactions were the same as those of arm’s length transactions.
2. Ms. Junko Miyoshi, a director and Supervisory Committee member, has a close relative who owns a majority of the voting rights of Ability Center, Inc.

46

IYO BANK Annual Report 2021

Outstandingbalance(Millionsof yen)¥0

(Consolidated Supplementary Schedules)
1 BORROWED MONEY AND LEASE LIABILITIES
Borrowed money consisted of the following:Thousands of
U.S. dollars(Note 1-1)

Millions of yen

Borrowings from banks
Lease liabilities(due within one year)
Lease liabilities(due after one year)

2021¥743,6452020¥770,378

2021$6,717,053

270

252

2,438

1,544

502

13,946

The weighted average interest rates on the outstanding balances at
March 31, 2021 and 2020 were as follows:
2021
2020
Borrowings from banks
0.02%
0.32%
Lease liabilities(due within one year)——
Lease liabilities(due after one year)——(Note) The “average interest rate“ is not shown for lease obligations because the
Bank uses a method in which amounts equal to the interest in the total
capital lease obligations are spread equally over each fiscal year of the lease
period.

IYO BANK Annual Report 2021

47

Independent Auditor’s Report
To the Board of Directors of The Iyo Bank, Ltd.:

OpinionWe have audited the accompanying consolidated financial statements of The Iyo Bank, Ltd. and its
consolidated subsidiaries (collectively referred to as “the Group”), which comprise the consolidated balance
sheet as at March 31, 2021,and the consolidated statement of income, statement of comprehensive income,statement of changes in net assets and statement of cash flows for the year then ended, and notes, comprising asummary of significant accounting policies, other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, theconsolidated financial position of the Group as at March 31, 2021, and its consolidated financial performanceand cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the ethicalrequirements that are relevant to our audit of the consolidated financial statements in Japan, and we havefulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our auditof the consolidated financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
Appropriateness of the estimates of reserve for loan losses

48

The key audit matter

How the matter was addressed in our audit

The Iyo Bank, Ltd. (hereinafter referred to as the“Iyo Bank”) and its consolidated subsidiaries
reported loans and bills discounted of ¥4,975,984
million and reserve for loan losses of ¥37,043
million in the consolidated balance sheet for thecurrent fiscal year.

The primary procedures we performed to assess
whether Iyo Bank’s estimates of reserve forloan losses for loans and bills discounted was
reasonable included the following:

IYO BANK Annual Report 2021

As described in “Basis of Presenting Consolidated
Financial Statements” Note 4 Significant
accounting policies (5) Reserve for possible loan
losses and “Significant accounting estimates” tothe consolidated financial statements, the amountof reserve for loan losses on the receivables
including loans and bills discounted was measured
for each borrower category. The borrower
categories were determined for individual
borrowers according to their assigned credit risk
rating. When determining the borrower categories,
each borrower’s repayment ability is assessed
based on their financial position, cash flows andprofitability.
Iyo Bank is a regional financial services institution
with a solid operating base in the Setouchi
region, primarily in Ehime Prefecture, providing
comprehensive financial services to support local
economy and society. As a trait of such regional
financial institution, it furnishes loans to manysmall and medium-sized businesses in its main
business operation amounting to ¥2,569,841
million, which accounted for a high proportion in
total balance of loans and bills discounted.
Unlike major companies, small and medium-sizedbusinesses generally have weak business bases
and are subject to local economic conditions. As aresult, Iyo Bank is required to determine borrower
categories based on not only a borrower’s
financial position but also its business conditions
while comprehensively taking into consideration
its technological capabilities, sales strengths,
potential growth, payment status of remuneration
to executive officers including a representative,
as well as their income status, details of theirassets, and guarantee status and capabilities ofa representative and others. For a borrower who
developed a business improvement plan, Iyo Bank
needs to appropriately assess the reasonablenessand feasibility of the plan. Determining theborrower categories requires significant
management judgment.

(1) Internal control testing
We tested the design and operating
effectiveness of certain internal controls
relevant to determining the borrower categories
in the self-assessment of loan quality.
• controls to validate whether the internal selfassessment criteria, and the policy for writeoffs and provisions complied with accounting
standards;• controls to ensure the reliability of financial
information of borrowers used in determining
quantitative credit rating; and• controls to ensure the effectiveness of
examination performed by the secondary
assessment department in determining theborrower categories.
(2) Assessment of the appropriateness of theborrower categories
In order to assess whether the borrower
categories were appropriately determined, we:• assessed whether borrower information suchas financial information, which was usedas the basis for determining the borrower
categories, was based on sufficient and thelatest information of borrowers by inspecting
the underlying documents and comparing
them to relevant documents;

IYO BANK Annual Report 2021

49

50

In addition, as described in “Significant
accounting estimates” to the consolidated
financial statements, Iyo Bank provided reserve
for loan losses of ¥8,681 million by estimating
credit deterioration considering the impact fromthe COVID-19 pandemic. This reserve for loan
losses is calculated by multiplying a population
by a certain rate. The population consists ofrestructured loans to certain borrowers andloans to certain borrowers in specific sectors
significantly affected by COVID-19. It is assumed
that future financial conditions, cash flows
and profitability of these borrowers have highchances of deterioration compared with otherborrowers. Therefore, there is an assumption thatthe borrower categories of certain borrowers will
be negatively changed. This assumption involved
a high degree of uncertainty because of changes
in impact from the COVID-19 pandemic andsignificant management judgment.

• inspected and analyzed relevant documents
and inquired of the personnel responsiblefor determination of the borrower categories
to assess whether borrower categories
were appropriately determined by selecting
borrowers after considering quantitative
information including the balance of loans
and qualitative factors such as sectors,
reflecting relevant information including
financial indicators and projected financial
performance. The procedures include asset
turnover analysis, comparison with relevant
documents and inquiry of the personnel
responsible for determination of the borrower
categories to assess whether unrealized
losses on assets were appropriately reflected
on a borrower’s financial statements andwhether management indicators including theability to redeem a debt were appropriately
calculated; andWe, therefore, determined that our assessment of
the reasonableness of the estimates of reserve forloan losses for loans and bills discounted at Iyo
Bank was of most significance in our audit of theconsolidated financial statements for the current
fiscal year, and accordingly, a key audit matter.

• For a borrower who is in unfavorable
business conditions and whose management
improvement plan is a significant factor
in determining the borrower categories,
assessed the appropriateness of the borrower
categories with comprehensive considerationof differences between the plan and actual
results and trends of the sector to which theborrower belongs.

IYO BANK Annual Report 2021

(3) Assessment of appropriateness of reserve forloan losses recorded in response to COVID-19
In order to assess whether reserve forloan losses in response to COVID-19 wasappropriately recorded, we:• assessed the effectiveness of internal controls
relevant to inspection and approval at Iyo
Bank to ensure that reserve for loan losses
in response to COVID-19 was appropriately
recorded based on the internal rules. We
also assessed the effectiveness of Iyo Bank’s
internal controls to ensure the accuracy andcompleteness of the significant basic datasuch as borrower information used for theinternal controls; and• assessed the reasonableness of the selectionof borrowers with restructured loans andsectors affected by the COVID-19 pandemic
as well as the degree of downgrading
the internal credit rating of the borrower
by comparing with available external
information.

Responsibilities of Management and the Audit and supervisory Committee for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance withaccounting principles generally accepted in Japan and using the going concern basis of accounting unlessmanagement either intends to liquidate the Group or to cease operations, or has no realistic alternative but todo so.
The audit and supervisory committee are responsible for overseeing the directors’ performance of their duties
including the design, implementation and maintenance of the Group’s financial reporting process.

IYO BANK Annual Report 2021

51

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with auditing standards generally accepted in Japan will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these consolidated financial statements.
As part of our audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting amaterial misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

●	Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances, while the objective of the audit is not to express an opinion on theeffectiveness of the Group’s internal control.

●	

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management.

●	Conclude on the appropriateness of management’s use of the going concern basis of accounting andbased on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue as a going concern.

●	

Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordancewith accounting standards generally accepted in Japan, the overall presentation, structure and content of
the consolidated financial statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.

●	

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Group to express an opinion on the consolidated financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.

●	

52

IYO BANK Annual Report 2021

We communicate with the audit and supervisory committee regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide the audit and supervisory committee with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other mattersthat may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the audit and supervisory committee, we determine those matters thatwere of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulationprecludes public disclosure about the matter or when, in extremely rare circumstances, we determine thata matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended
March 31, 2021 are presented solely for convenience. Our audit also included the translation of yen amounts
into U.S. dollar amounts and, in our opinion, such translation has been made on the basis described in Note
1-1 to the consolidated financial statements.

Interest required to be disclosed by the Certified Public Accountants Act of Japan
We do not have any interest in the Group which is required to be disclosed pursuant to the provisions of theCertified Public Accountants Act of Japan.

IYO BANK Annual Report 2021

53

Kazuhiro Matsuyama
Designated Engagement Partner
Certified Public Accountant

Satoshi Okuda
Designated Other Partner
Certified Public Accountant

Ryosuke Koike
Designated Other Partner
Certified Public Accountant
KPMG AZSA LLC
Osaka Office, Japan
July 30, 2021

54

IYO BANK Annual Report 2021

Nonconsolidated Balance Sheet (Unaudited)
The Iyo Bank, Ltd.
March 31, 2021

Thousands of
U.S. dollars

Millions of yen

2021

2021

2020

ASSETSCash and due from banks
Receivables under resale agreements
Monetary claims purchased
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Reserve for loan losses
Foreign exchange
Other assets
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Customers’ liabilities for acceptances and guarantees
Total assets¥1,415,244
—
6,834
649
1,257
1,890,539
4,999,333(32,784)
8,596
84,24371,896
9,013
23,166
28,796¥8,506,787¥ 718,427
355,563
8,173
727
4,948
1,707,613
4,756,637(26,847)
10,741
102,789
71,154
8,051
20,597
26,382¥7,764,961$12,783,343—
61,728
5,862
11,353
17,076,497
45,157,013(296,125)
77,644760,933
649,408
81,410209,249
260,102$76,838,469

LIABILITIES AND NET ASSETS
Liabilities
Deposits
Call money
Payables under repurchase agreements
Payables under securities lending transactions
Borrowed money
Foreign exchange
Borrowed money from trust account
Other liabilities
Accrued employees’ bonuses
Employees’ severance and retirement benefits
Reserve for losses on repayment of dormant bank accounts
Reserve for contingent losses
Reserve for share-based payment
Deferred tax liabilities
Deferred taxes on revaluation excess
Acceptances and guarantees
Total liabilities¥6,522,633
61,624
199,289
91,604
738,176266
563,008
1,626
12,789
1,652
703
289
76,848
9,573
28,796
7,808,888¥5,754,395
217,618
30,357
198,436
764,056295
28
53,8471,494
13,002
2,393
591
192
56,242
9,637
26,382
7,128,972$58,916,385
556,625
1,800,099
827,422
6,667,654
2,402
45
569,126
14,687
115,518
14,9216,349
2,610
694,137
86,469260,10270,534,621

Net assets
Common stock
Authorized — 600,000,000 shares
Issued — 323,775,366 shares
Capital surplus
Legal reserve
Other retained earnings
Treasury stock
Net unrealized holding gains (losses) on securities
Net deferred gains (losses) on hedging instruments
Land revaluation excess
Stock acquisition rights
Total net assets
Total liabilities and net assets

20,948
10,48020,948418,816(6,508)214,136(374)
19,178273
697,899¥8,506,787

20,948
10,48020,948406,442(6,611)
163,329792
19,315343
635,989¥7,764,961

189,215
94,661
189,215
3,783,000(58,784)
1,934,206(3,378)173,2272,465
6,303,847$76,838,469

IYO BANK Annual Report 2021

55

Nonconsolidated Statement of Income (Unaudited)
The Iyo Bank, Ltd.
For the year ended March 31, 2021

Thousands of
U.S. dollars

Millions of yen

INCOMEInterest and dividend income:Interest on loans and discounts
Interest and dividends on securities
Interest on receivables under resale agreements
Other interest income
Fees and commissions
Other operating income
Other income
Total income
EXPENSESInterest expense:
Interest on deposits
Interest on borrowings and rediscounts
Interest on payables under repurchase agreements
Interest on payables under securities lending transactions
Other interest expense
Fees and commissions
Other operating expenses
General and administrative expenses
Other expenses
Total expenses
Income before income taxes
Income taxes:
Current
Deferred
Net income

2021

2020

2021

¥ 49,654
25,176(160)
1,041
12,664
11,321
4,764
104,463¥ 54,574
23,323(6)
1,515
13,833
6,871
6,326
106,437$448,505
227,404(1,445)
9,402
114,388
102,258
43,031
943,573

1,724
956
187
12
1,477
6,462
5,767
49,37015,10081,05823,404

4,418
1,679
716
1,864
4,527
6,718
1,395
49,065
10,42380,811
25,626

15,572
8,635
1,689
108
13,34158,36852,091445,939
136,392
732,165
211,399

8,093(1,368)¥ 16,679

6,961
162¥ 18,502

73,100(12,356)$150,654

Yen

Basic net income per share
Diluted net income per share

56

IYO BANK Annual Report 2021

¥52.67
52.61

U.S. dollars¥58.45
58.37

$0.47
0.47

Nonconsolidated Statement of Changes in Net Assets (Unaudited)
The Iyo Bank, Ltd.
For the year ended March 31, 2021

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Millions of yen
Stockholders’ equity
Capital surplus
Other capital
Common stock Capital reserve
surplus¥20,948¥10,480

Total capitalsurplus¥—¥10,480

(6)

(6)

6

6

—

—

—

—

¥20,948¥10,480¥—¥10,480

Thousands of U.S. dollars
Stockholders’ equity
Capital surplus
Other capital
Common stock Capital reserve
surplus

Total capitalsurplus$189,215$94,661$ —$94,661

(54)

(54)

54

54

—

—

—

—

$189,215$94,661$ —$94,661

Millions of yen
Stockholders’ equity
Retained earnings
Other retained earnings
Retained
Total retained
Deferred gains
Generalearnings
Legal reserve on real property
earnings
reservebrought forward¥20,948¥2,048¥384,594(6)
14,000¥ 19,799¥427,390(4,436)(4,436)

6(14,000)
16,679——16,679Treasury stock

Total
stockholders’equity¥(6,611)¥452,208(4,436)

(0)
104
(6)
137

(6)
137

16,679
(0)
98
—
137

—

(6)

14,000(1,618)12,374103

12,477¥20,948¥2,041¥398,594¥18,180¥439,765¥(6,508)¥464,686

IYO BANK Annual Report 2021

57

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Thousands of U.S. dollars
Stockholders’ equity
Retained earnings
Other retained earnings
Retained
Total retained
Deferred gains
Generalearnings
Legal reserve on real property
earnings
reservebrought forward$189,215$18,498(54)$3,473,886

126,456$178,836$3,860,446(40,068)(40,068)

54(126,456)
150,654——
150,654

(54)
1,237

(54)
1,237

Treasury stock

Total
stockholders’equity$(59,714)$4,084,617(40,068)

(0)
939

—
1,237

—

(54)

126,456(14,614)111,769930

112,699$189,215$18,435$3,600,343$164,212$3,972,224$(58,784)$4,197,326

Millions of yen
Valuation and translation adjustments

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Valuationdifference
on availablefor-salesecurities

Deferred gains
and losses onhedges

Revaluation
reservefor land

Total valuationand translation
adjustments

Subscription
rights tosharesTotal net assets¥163,329¥792¥19,315¥183,437¥343¥635,989(4,436)

16,679(0)98
137
50,807(1,167)(137)

49,502(69)

49,43250,807(1,167)(137)

49,502(69)

61,910¥214,136¥(374)¥19,178¥232,939¥273¥697,899

Thousands of U.S. dollars
Valuation and translation adjustments

For the year ended March 31, 2021

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

58

IYO BANK Annual Report 2021

150,654(0)885Valuationdifference
on availablefor-salesecurities

Deferred gains
and losses onhedges

Revaluation
reservefor land

Total valuationand translation
adjustments

Subscription
rights tosharesTotal net assets$1,475,286$7,153$174,464$1,656,914$3,098$5,744,639(40,068)

150,654
(0)
885
1,237
458,919(10,541)(1,237)447,132(623)

446,499458,919(10,541)(1,237)447,132(623)

559,208$1,934,206$(3,378)$173,227$2,104,046$2,465$6,303,847

For the year ended March 31, 2020

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

For the year ended March 31, 2020

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Millions of yen
Stockholders’ equity
Capital surplus
Other capital
Capital reserve
surplus

Commonstock¥20,948¥10,480

Total capitalsurplus¥—¥10,480

(5)

(5)

5

5

—

—

—

—

¥20,948¥10,480¥—¥10,480

Millions of yen
Stockholders’ equity
Retained earnings
Other retained earnings
Retained
Total retained
Deferred gains
Generalearnings
Legal reserve on real property
earnings
reservebrought forward¥20,948¥2,059(11)¥370,594

14,000¥19,452¥413,054(4,435)(4,435)

11(14,000)
18,502——
18,502

(5)
274

(5)
274

Treasury stock

Total
stockholders’equity¥(6,683)¥437,800(4,435)(0)72

18,502
(0)
66
—
274

—

(11)

14,000347

14,33671

14,408¥20,948¥2,048¥384,594¥19,799¥427,390¥(6,611)¥452,208

Millions of yen
Valuation and translation adjustments

For the year ended March 31, 2020

Balance at the beginning of
the accounting period
Changes during the accounting period
Dividends
Reversal of deferred gains onreal property
Provision of general reserve
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposalof treasury stockReversal of land revaluation excess
Changes in items other thanstockholders’ equity, net
Total changes during
the accounting period
Balance at the endof the accounting period

Valuationdifference
on availablefor-salesecurities

Deferred gains
and losses onhedges

Revaluation
reservefor land

Total valuationand translation
adjustments

Subscription
rights tosharesTotal net assets¥158,875¥(1,545)¥19,590¥176,919¥397¥615,117(4,435)18,502
(0)
66
274
4,453

2,338

(274)

6,517

(54)

6,463

4,453

2,338

(274)

6,517

(54)

20,871¥163,329¥792¥19,315¥183,437

343¥635,989

IYO BANK Annual Report 2021

59

Corporate Data
(As of March 31, 2021)

Year of Foundation
1878

Board of Directors and Corporate Auditors(As of June 29, 2021)

Common Stock
Authorized 600,000,000 shares
Issued323,775,366 shares
Capital¥20,948 million

ChairmanIwao Otsuka

President

Kenji Miyoshi

Deputy President

Kenji Takata

Number of Stockholders
25,510Managing Directors

Kensei Yamamoto
Masamichi Ito
Hiroshi Nagata
Hirohisa Semba

Directors(Audit and Supervisory
Committee Members)

Tetsuo Takeuchi
Kaname Saeki
Junko Miyoshi
Keiji Joko
Yuichi Ohashi
Yoriko Noma

Major Stockholders
Name

Custody Bank of Japan, Ltd
The Master Trust Bank of Japan, Ltd.
Nippon Life Insurance Company
Meiji Yasuda Life Insurance Company
Daio Kaiun Co.,Ltd.
Sumitomo Forestry Co., Ltd.
Sumitomo Life Insurance Company
Employee stock ownership of Iyo Bank
Sompo Japan Nipponkoa Insurance Inc.
Nichia Corporation

Shares(thousands)%

47,79018,985
8,878
8,867
6,000
5,911
5,415
4,884
4,293
3,830

15.07
5.99
2.80
2.79
1.89
1.86
1.70
1.54
1.35
1.20

Number of Employees(The Iyo Bank, Ltd. and its Consolidated Subsidiaries)
3,071
Number of Branches
150 (Domestic 149, Foreign 1)

Senior Managing Executive Officers Kenji Morioka
Keijiro Joko
Managing Executive Officers

Shinya Fujita
Yasuji Fujita
Koichi Kihara
Kazuya Chikata
Yoshiki Kume

Executive Officers

Shinichi Doi
Seiji Komoda
Toshiki Hamaguchi
Yasumi Inada
Naoaki Fujita
Norihiko Kawasaki
Takashi Tokunaga
Kazushige Yano
Masahiko Kimura
Nobuyuki Sasaki
Takeshi Watanabe
Takashi Sagayama

Directory(As of March 31, 2021)

Head Office
1, Minami-Horibata-cho, Matsuyama 790-8514
Tel: (089)931-9899
https://www.iyobank.co.jp/

Singapore Branch
8 Marina View #15-02 Asia Square Tower 1, Singapore
018960, Singapore
Tel: (65) 6394-9830

International Division
Tel: (089) 931-9899
SWIFT Address: IYOBJPJTHong Kong Representative Office
Suite 2812, Tower Two, Times Square, 1 Matheson Street,
Causeway Bay, Hong Kong
Tel: (852)2869-0466

Treasury and Foreign Exchange Department
Tel: (03) 3242-1801
SWIFT Address: IYOBJPJTShanghai Representative Office
Room 1603 Shanghai International Trade Center, 2201 Yan-an
Road (West), Shanghai 200336, People’s Republic of China
Tel: (021) 6270-7488

IYO BANK Annual Report 2021

61

HEAD OFFICE
1, Minami-Horibata-cho, Matsuyama 790-8514
URL: https://www.iyobank.co.jp/

Printed in Japan