THE KYOTO CHUO SHINKIN BANKANNUAL REPORT 2022

Company proﬁle of the Kyoto Chuo Shinkin Bank

Head Office: 91 Kankoboko-cho,
Shijo-dori Muromachi Higashi-iru,
Shimogyo-ku, Kyoto City, Kyoto Prefecture
Established: June 18, 1940

Customers/
members

Number ofmembers: 232,438
Capital: 19.8 billion yen

Deposits

Capital

Deposit / Certificate
of Deposit: 5,268.6 billion yen
Loan balance: 3,119.6 billion yen
Net business profit: 15.7 billion yen
Ordinary profit: 16.0 billion yen

Loans

Supportservices

Customers/
members

Net profit: 12.0 billion yen
Capital adequacy ratio: 10.93%
Number of employees: 2,478
Number of branches: 132(Year ended March 2022)

The Kyoto Chuo Shinkin Bank is a cooperative financial institution that operates under the shared philosophy of prosperity for all, including
for local SMEs and individuals. The Kyoto Chuo Shinkin Bank serves Kyoto City and parts of Kyoto, Shiga, Osaka and Nara prefecture.
The deposits we look after for our customers in the community are used for investments in customers that require capital, such as venturecorporations, in order to foster the continued development of local economies and businesses.
Moreover, we have formed a strong network characterized by close ties to the community. With a broad branch system, we provide
products and services in-line with the demand of customers and assist them in improving their lives.
We are also actively involved in activities designed to help the cultivation of human resources and engage in activities geared toward
protecting and passing on to the next generation the local natural environment, scenery, and traditional culture in our community, including
within an international city of culture and tourism; Kyoto. Thus, we contribute to development in our community not just financially, but inother various ways as well.

We are actively involved in activities that contribute to a society to which we are thankful.
Unlike city-based commercial banks, which do business on a national scale, credit associations are limited in their terms of where they dobusiness. As such, credit associations cannot hope for their own development without the development of the communities where they dobusiness. The Kyoto Chuo Shinkin Bank (as a financial institution headquartered in the land of the Kyoto Protocol) not only serves to help
the region prosper through financial institution activities, but is also actively involved with environmental issues and continuously engages
in various activities that contribute to a society we are grateful for.

1

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2022

Fund procurement and management
Deposit balances by account type

(Unit : million yen)

Year ended March 2021 (Component ratio)

Year ended March 2022 (Component ratio)

Current deposits

107,332(2.12%)

116,164(2.20%)

8,832(0.08%)

Ordinary deposits

2,447,234(48.34%)

2,615,037(49.63%)

167,802(1.29%)

Savings deposits

55,799(1.10%)

56,759(1.07%)

959(△0.02%)

Deposits at notice

41,022(0.81%)

20,837(0.39%)△20,184(△0.41%)2,116,308(41.80%)2,197,995(41.71%)

81,687(△0.08%)Fixed savings deposits

37,232(0.73%)

33,514(0.63%)△3,717(△0.09%)Other deposits

97,393(1.92%)

36,358(0.69%)△61,034(△1.23%)

Total deposit reserve

4,902,323(96.83%)

5,076,667(96.35%)

174,344(△0.48%)

Certificate of deposit

160,000(3.16%)

192,000(3.64%)

32,000(0.48%)

5,062,323(100.00%)

5,268,667(100.00%)

206,344(–)

Time deposits

Total

Changes(Note) Foreign currency deposits are included in“Other deposits”.

Deposit balances by depositor
(Unit : million yen)

Year ended March 2021 (Component ratio)

Year ended March 2022 (Component ratio)

Individual customers

3,488,591(68.91%)

3,576,861(67.88%)88,269(△1.02%)

Corporate customers

1,129,755(22.31%)

1,229,142(23.32%)

99,387(1.01%)

Public institutions

144,769(2.85%)

189,788(3.60%)

45,019(0.74%)

Financial institutions

139,207(2.74%)

80,874(1.53%)△58,332(△1.21%)

Total deposit reserve

4,902,323(96.83%)

5,076,667(96.35%)

174,344(△0.48%)

Certificate of deposit

160,000(3.16%)

192,000(3.64%)

32,000(0.48%)

5,062,323(100.00%)

5,268,667(100.00%)

206,344

(–)

Total

Loan balances by account type


Changes(Unit : million yen)

Year ended March 2021

Year ended March 2022

Changes

Bills discounted

4,310

4,299

△10

Loans on bills

74,15379,4725,318

2,866,837

2,955,186

88,34980,28380,739456

3,025,584

3,119,697

94,112Loans on deeds
Overdrafts
Total(Note) The Bank does not distinguish between domestic and international operations.

2

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2022

Breakdown of loan balances by business type

(Unit : number, million yen)

Year ended March 2021

Manufacturing

Year ended March 2022

Number ofborrowers

LoanbalanceComponent
ratio

Number ofborrowers

LoanbalanceComponent
ratio

2,695

157,327

5.19%

2,708

168,075

5.38%

Agriculture, forestry

60

1,252

0.04%

67

1,166

0.03%

Fishing

－

－

－

－

－

－

Mining, quarrying, sand and gravel gathering

8

1,599

0.05%

8

1,649

0.05%

4,161

168,300

5.56%

4,276

177,243

5.68%

Electricity, gas, heat supply, water

36

1,045

0.03%

36

1,611

0.05%

Telecommunications

250

8,312

0.27%

254

9,616

0.30%

Transportation, postal industry

443

41,8431.38%

467

42,242

1.35%

Wholesale business

1,489

98,032

3.24%

1,482

99,892

3.20%

Retail business

1,819

69,900

2.31%

1,862

70,4192.25%

75

137,465

4.54%

88

137,715

4.41%

6,062

645,944

21.34%

6,343

685,220

21.96%

53

2,931

0.09%

56

3,218

0.10%

569

13,9190.46%

623

15,2650.48%

Construction

Finance, insurance
Real estate
Rental industry
Scientific research, specialist/
technical services

Accommodation industry
Restaurant industry
Lifestyle-related service industries,
entertainment industry

Education, study support industry

200

20,7500.68%

197

19,763

0.63%

1,735

45,643

1.50%

1,797

48,3391.54%

733

50,6051.67%

780

49,815

1.59%

177

15,7150.51%

189

17,5250.56%

Medicine, welfare

1,026

71,275

2.35%

1,087

75,4002.41%

Other services

1,586

71,893

2.37%

1,638

74,0282.37%

Subtotal

23,177

1,623,759

53.66%

23,958

1,698,210

54.43%

26

167,198

5.52%

28

162,802

5.21%

Local public entities
Individual (housing, consumption,
tax payment funds, etc.

)

Total

124,602

1,234,626

40.80%

121,380

1,258,683

40.34%

147,805

3,025,584

100.00%145,366

3,119,697

100.00%(Notes) 1. Business categories are based on the large classification of Japan Standard Industry Classification.
2. Loans outside Japan are classified in the same manner as those in Japan and are included within their respective business category.

Fund management and securities business
Average balance by type of security(Unit : million yen)

Year ended March 2021

Year ended March 2022

Changes

Japanese government bonds

346,763404,942

58,178

Local government bonds

417,445436,175

18,730

Corporate bonds

516,490

512,264△4,226

Stocks44,491

41,716△2,775

Foreign securities

221,272

229,154

7,882

Other securities

98,463

108,623

10,1601,644,927

1,732,877

87,950

Total

Other indicators

Foreign exchange transaction handling performance

Export exchange

Import exchange

TotalYear ended March 2021
72

162

(Unit : million US$)Year ended March 2022
88

171

234

259

Foreign currency denominated assets balance

Balance of foreign currency denominated assets

Changes15
925(Unit : million US$)Year ended March 2021
1,259

3

Year ended March 2022
1,304

Changes44

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2022

About the capital-to-asset ratio
Consolidated capital-to-asset ratio (Basel III domestic framework)Year ended
March 2021

Year ended
March 2022

278,241

289,142

10,901(Investments and capital surplus)

20,126

19,925△ 200(Earned surplus)

260,301

271,539

11,237

745

731

△ 13

△ 1,441△ 1,590△ 149

General reserve for possible loan loss

6,004

6,041

36

Fundamental items related to core capital among the amountequivalent to 45% of difference in reevaluation of land

1,652

1,101

△ 550

22

15

△6

285,920

296,301

10,380

2,832

3,230

398

(B)

2,832

3,230

398

(A) － (B)283,087

293,070

9,982

2,457,690

2,521,822

64,131

83,60987,2263,616

2,541,299

2,609,048

67,748

11.13%

11.23%

0.10%

Item

Member accounts related to ordinary investment(Predicted outflow (△))
Fundamental items
related to core
capital (A)(Other)Fundamental items related to core capital among non controllinginterestAdjusted items
related to core
capital (B)(A)

Intangible fixed assets


Owned capital (C)Trust risk assets
Risk assets,etc. (D)(Unit : million yen)Amount derived by dividing the total amount equivalent tooperational risk by 8%Consolidated capital-to-asset ratio

(D)
（C）
（D）

Changes(Note) The above is calculated based on the“Standards for judging whether the owned capital Shinkin Bank or Shinkin Bank Association holds isappropriate according to the assets they possess based on the regulations in Article 14, Section 2 of the Banking Act applying to Article 89,
Section 1 of the Shinkin Bank Act (Financial Services Agency announcement 21 of 2006).”Our group has adopted a domestic framework.

4

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2022

Consolidated Financial Statements

Consolidatedbalance sheet(Assets)
Cash and due from banks
Monetary claims purchased
Trust funds
Trading securities
Investment securities
Loans
Foreign exchange
Other assets
Tangible fixed assets
Buildings
Land
Leased assets
Construction work in progress
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Deferred tax assets
Customers’liabilities for acceptances and guarantees
Reserve for possible loan loss
Reserve for investment loss
Total assets(Liabilities)
Deposits
Certificate of deposit
Borrowings
Bills sold and call money
Bond lending transaction collateral received
Foreign exchange
Other liabilities
Reserve for bonuses
Retirement benefit liability
Reserve for retirement bonuses for directors
Reserve for reimbursement of deposits
Reserve for contingent losses
Reserve for reward payments of deposits
Deferred tax liability
Deferred tax liabilities as for land revaluation
Acceptances and guarantees
Total liabilities(Net assets)
Investments
Capital surplus
Earned surplus
Unsettled equity
Total members’equity
Net unrealized gains on available-for-sale securities
Deferred hedging gains and losses
Land revaluation surplus
Total amount on valuation and translation
Non controlling interest
Total net assets
Total liabilities and net assets(Unit : million yen)

As of March 31, 2021

1,445,215
3,000
9,903
1,129
1,695,373
3,023,162
34,511
31,972
54,417
6,655
43,574
－
662
3,525
3,932
1,594
2,338
705
2,653
△ 16,173△ 71
6,289,733
As of March 31, 2021

5

As of March 31, 2022

1,526,772
10,0007,781
969
1,864,853
3,119,143
972
33,34755,577
7,653
43,954
1
732
3,234
4,485
4,231
253
5,748
2,462
△ 15,950△ 61
6,616,102
As of March 31, 2022

Changes

81,5567,000△ 2,122△ 159
169,480
95,981△ 33,539
1,374
1,159
998
380
1
70
△ 290
552
2,636
△ 2,084
5,042
△ 190
223
9
326,368
Changes

4,894,296
145,000
554,100
33,821
307,357
110
23,738
10
11,393
553
365
283
47
721
4,670
2,653
5,979,125

5,072,847
175,000
603,766
8,747
404,314
121
26,267
10
11,171
637
361
270
39
－
4,670
2,462
6,310,689

178,551
30,00049,666△ 25,074
96,957
10
2,528
0
△ 221
84
△4
△ 12
△8
△ 721
－
△ 190
331,564

20,07946
260,301△ 1,441
278,986
23,685293
7,566
31,54675
310,6076,289,733

19,87946
271,539△ 1,590289,874
5,680
2,211
7,566
15,45978
305,4126,616,102△ 200－
11,237△ 149
10,887△ 18,004
1,918－△ 16,0863△ 5,195
326,368

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2022

Consolidated Financial Statements

Consolidated statement of income(Unit : thousand yen)
April 1, 2020 through March 31, 2021

64,252,939
48,572,066
33,514,686
1,352,347
1,584
12,054,100
1,649,347
6,496,956
5,538,652
3,645,263
579,673
3,065,589
50,348,529
2,637,397
2,061,018
2,816
5,243
85,11384,596
251,899
146,709
6,112,253
4,957,471
33,126,456
3,514,951
1,526,157
1,988,793
13,904,409
745,388745,388
111,661
111,661
14,538,136
3,620,267
467,617
4,087,885
10,450,251△ 3,010
10,453,261

Ordinary income
Fund management income
Interest on loans
Interest on deposits
Interest on bills purchased and call loans
Interest and dividends on securities
Other interest income
Fees and commissions
Other operating income
Other ordinary income
Bad debt recovered
Other ordinary income
Ordinary expenses
Financing expenses
Interest on deposits
Interest on fixed savings deposits
Certificate of deposit interest
Interest on borrowings
Interest on bills sold and call money
Interest paid in bond lending transactions
Other interest expenses
Fees and commissions
Other operating expenses
Expenses
Other ordinary expenses
Provision of allowance for doubtful debt accounts
Other ordinary expenses
Ordinary profit
Extraordinary profit
Gain on disposal of fixed assets
Extraordinary loss
Loss on disposal of fixed assets
Net income before taxes and other adjustments
Corporate tax, inhabitant tax and business tax
Adjustment with corporate tax, etc.
Total corporate tax, etc.
Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

April 1, 2021 through March 31, 2022

62,430,934
48,488,388
34,314,575
1,702,581－
11,910,873
560,358
7,839,745
3,884,015
2,218,784
207,3102,011,474
45,845,044
1,269,070
638,635
1,658
59,123
12,195
26,524
353,555
177,376
6,337,464
3,707,618
32,856,475
1,674,415
743,295
931,119
16,585,890
60,341
60,341
260,207260,207
16,386,024
4,058,223
350,260
4,408,484
11,977,539△ 5,198
11,982,738

Consolidated
statement of retained earnings(Capital surplus)
Capital surplus balance at beginning of year
Increase in capital surplus
Decrease in capital surplus
Capital surplus balance at end of year
(Earned surplus)
Earned surplus balance at end of year
Increase in earned surplus
Profit attributable to owners of parent
Reversal of revaluation reserve for land
Decrease in earned surplus
Dividends
Earned surplus balance at end of year

Changes△ 1,822,004△ 83,678
799,888
350,234△ 1,584△ 143,227△ 1,088,989
1,342,789△ 1,654,636△ 1,426,478△ 372,363△ 1,054,115△ 4,503,485△ 1,368,326△ 1,422,382△ 1,157
53,880△ 72,917△ 58,071
101,656
30,666225,210△ 1,249,852△ 269,981△ 1,840,535△ 782,861△ 1,057,673
2,681,480△ 685,047△ 685,047
148,546
148,546
1,847,887
437,956△ 117,356
320,599
1,527,287△ 2,188
1,529,476(Unit : thousand yen)

April 1, 2020 through March 31, 2021

April 1, 2021 through March 31, 2022

46,756－－46,75646,756－－46,756

250,846,385
10,588,185
10,453,261
134,924
1,132,706
1,132,706
260,301,864

260,301,864
11,982,738
11,982,738－
745,575
745,575
271,539,026

Changes－－－－

9,455,479
1,394,552
1,529,476△ 134,924△ 387,130△ 387,130
11,237,162

Segment information by business type
Some consolidated companies conduct credit guarantee business, etc., in addition to credit association business, but because theratio of these business activities to all segments is minimal, segment information by business type is not included here.

6

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2022

Status of Loan Assets

Self-assessment and write-off/allowance
For ensuring the health of assets, the Bank has rigorously implemented“self-assessment”in order to scrutinize its own assets
individually, as well as“write-off and allowance”in accordance with it.
In the self-assessment, the Bank assesses the repayment capacity of borrowers based on their financial condition, cash position andprofitability. In accordance with the results of the assessment, they are classified into one of five groups consisting of“Normal
entities,”“Entities requiring caution,”“Potentially bankrupt entities,”“Entities bankrupt in substance”and“Bankrupt entities.”Then, theBank classifies each individual loan into one of four groups consisting of“Unclassified,”“Classification II,”“Classification III”and“Classification IV,”based on the degree of the risk inherent in collection of the loan or based on the risk of damage to the value ofthe loan. The Bank has fully established regulations for write-off and allowance. It processes based on the classification of borrowers
and loans.

Self-assessment, disclosed loans, and coverage conditions (non-consolidated basis)(Unit : 100 million yen)
Loans and claims required to be disclosed by
the Financial Reconstruction Law

Self-assessment
Unclassified Classification II Classification III Classification IV*
Bankrupt
 16
entities

4

11

－

－

Entities bankrupt
 56
in substance

8

27

－

20

Potentiallybankrupt 557
entities

260

214

82

Entities
requiring 4,405
cautionNormal entities
26,197

1,200Classification

Year ended
March 2022

Bankrupt andquasi-bankrupt
loans and claims

72

Bankrupt andquasi-bankrupt
loans and claims

72

Doubtful loans
and claims

557

Doubtful loans
and claims

557

Substandard
loans and claims

37

Loans overdue for3 months or more－

Loans with eased
lending conditions

37

Subtotal

667

Subtotal

667

3,204

26,197

Total

Classification

Year ended
March 2022

Loans and claims required to bedisclosed by the Shinkin Bank Act

Normal loans
and claims

30,605

Normal loans
and claims

30,605

Total

31,272

Total

31,272

31,233Coverage conditions
Collectible amountby collateral,guarantees, etc.

Reserve of
the Bank

Coverage
ratio

52

20

100.00%474

6496.73%

163

53.17%

543

88

94.66%* Category IV assessment off balance due to write-off is 500 million yen.
* The values of“Loans and claims required to be disclosed by the Financial Reconstruction Law”and“Loans and claims required to be disclosed by the Shinkin
Bank Act”include the values of privately placed bonds that the Bank guarantees.
In addition,“Coverage conditions”show ratios in proportion to the values shown under“Loans and claims required to be disclosed by the Financial
Reconstruction Law.”* Coverage ratio is rounded to the second decimal place.

Explanation of terms

Disclosed loans

Self-assessment

Financial Reconstruction Law

Bankrupt entities

Borrowers who are undergoing legal
and formal bankruptcy proceedings

Entities bankrupt
in substance

Borrowers who are not undergoing legal and formal
bankruptcy proceedings, but who are in serious
financial difficulties and bankrupt in substance

Potentiallybankrupt
entities

Borrowers who are not bankrupt at present, but
who are in financial difficulties, whose measures
for management improvement are notprogressing well, and who are recognized to behighly likely to become bankrupt in the future(including borrowers who are receiving support)

Entities
requiring
cautionBorrowers who require caution for the
management of loans in the future
because business is sluggish andunstable or they have problems in theirfinancial conditions

Substandard
loans andclaimsNormalentities

Borrowers whose business conditions
are good and who have no problems intheir financial conditions

Normal loans
and claims

Shinkin Bank Act

Bankrupt andquasi-bankrupt “Bankrupt entities”and“Entities bankrupt in substance”in self-assessment
loans and claims

Doubtful loans“Potentially bankrupt entities”in self-assessment
and claimsi) L oans for which principal and interest
payments are overdue for 3 months or more

Loans overdue for 3 months or more (Loans only)ii) Loans with eased lending conditions
such as a reduction in interest or a
moratorium on principal repayment, etc.

Loans with eased lending conditions (Loans only)“Normal entities”in self-assessment and“Entities requiring caution”other than substandard loans
and claims

7

KYOTO CHUO SHINKIN BANK ANNUAL REPORT 2022

Status of Loan Assets

Disclosure of loan assets
The Bank is obliged to disclose loans and claims based on the Financial Reconstruction Law and the Shinkin Bank Act.
The Bank has a total coverage ratio of 94.66% in combination with collateral, guarantees and reserves for disclosed claims based on
the Financial Reconstruction Law (excluding normal loans and claims) and continues to maintain a sufficient level of reserves. The
Bank believes that its mission is to contribute to the development of and support for the region, while securing sound management
through establishing sufficient reserves.

Coverage conditions and reserve for loans and claims required to be disclosed by the Financial
Reconstruction Law and the Shinkin Bank Act (non-consolidated)(Disclosure criteria specified in Article 6 and Article 7 of the Law Concerning Emergency Measures for the Reconstruction of the Functionsof the Financial System)(Unit : 100 million yen)Classification

Year ended March 2021

Year ended March 2022

Bankrupt and quasi-bankrupt loans and claims

75

72

Doubtful loans and claims

583

557

Substandard loans and claims

12

37

Loans overdue for 3 months or more－－

Loans with eased lending conditions

12

37

Subtotal (A)

671

667

Coverage amount (B)

647

631

Individual reserve for possible loan loss (C)84

85

General reserve for possible loan loss (D)03Amount collectible by collateral, guarantee, etc. (E)

562

543

Coverage ratio (B) / (A)（%）

96.39%

94.66%

Reserve rate ((C) ＋ (D)) / ((A) － (E))（%）

77.82%

71.39%

Normal loans and claims (F)29,64030,605

Total credit balance (A) ＋ (F)30,311

31,272* 1. The coverage ratio indicates the coverage ratio for the total amount of disclosed loans and claims (excluding normal loans and claims).
* 2. The reserve rate indicates the reserve rate for the unsecured balances within disclosed loans and claims (excluding normal loans and claims).
* 3. All rates within the table are rounded to the second decimal place.

Loans and claims required to be disclosed by the Shinkin Bank Act【consolidated】(Disclosure criteria specified in Article 89 of the Shinkin Bank Act)

(Unit : 100 million yen)Classification

Year ended March 2021

Year ended March 2022

Bankrupt and quasi-bankrupt loans and claims

82

78

Doubtful loans and claims

583

558

Loans overdue for 3 months or more－－

Loans with eased lending conditions

12

37

Subtotal (A)

679

674

Normal loans and claims (B)29,64530,631

Total credit balance (A) ＋ (B)30,32431,3058