Tokyo Kiraboshi Financial Group, Inc.
Listed Code: 7173
(URL: https://www.tokyo-kiraboshifg.co.jp)
Listed Stock Exchange: TSE (Prime Market)
November 11, 2022

Consolidated Financial Reportfor the First Half of the Fiscal Year Ending March 31, 2023
<Under Japanese GAAP>
Representative: Hisanobu Watanabe, President
Responsible person for inquiries: Nobuyuki Yasuda, Director and General Manager of Corporate Planning
Division
Telephone: +81-3-6447-5799
Date of submission of quarterly security report: November 24, 2022
Date to start dividend payment: December 2, 2022
Establishment of special transaction account: Not establishedPreparation of supplementary material on financial results: Yes
Holding of financial results presentation meeting: Yes
Note: Figures have been rounded down to the nearest million yen.

1. Consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2023
(From April 1, 2022 to September 30, 2022)(1) Results in consolidated operations
Ordinary income(Percentages represent year-on-year changes.)
Profit attributable toOrdinary profit
owners of parent(¥ million)(%)(¥ million)(%)(¥ million)(%)

First half of the fiscal year ending March 31, 2023

60,60829.1

13,217

78.6

8,625

80.9

First half of the fiscal year ended March 31, 2022

46,930

(0.0)

7,399

109.0

4,765

131.6

(Note) Comprehensive income: First half of the fiscal year ending March 31, 2023: ¥(6,834 million)
First half of the fiscal year ended March 31, 2022: ¥11,420 million
Profit attributable to owners ofparent per share (¥)

—
81.8%

Profit attributable to owners ofparent per share (Diluted) (¥)

First half of the fiscal year ending March 31, 2023

281.47149.89First half of the fiscal year ended March 31, 2022

152.6475.42(2) Consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets tototal assets ratio
(%)
4.7
4.9

First half of the fiscal year ending March 31, 2023
6,536,199
310,896
Fiscal year ended March 31, 2022
6,443,807
319,312(Reference)
Equity:First half of the fiscal year ending March 31, 2023: ¥310,800 million
Fiscal year ended March 31, 2022: ¥319,290 million(Note)“Equity” consists of subscription rights to shares at the end of the period and non-controlling interests at the end of the period
subtracted from net assets, and the “Net assets to total assets ratio” is calculated by dividing equity by total assets at the end of
the period. Note that this “Net assets to total assets ratio” is not the net assets to total assets ratio required for the Capital
Adequacy Ratio Notification (Financial Services Agency Notification No. 20 of 2006).

2. Dividends

Fiscal year ended March 31, 2022

First quarter–

Fiscal year ending March 31, 2023–

Annual dividend per share (¥)
Second quarter Third quarter Fiscal year-end
30.00
–
45.00

Annual
75.00

52.50

Fiscal year ending March 31, 2023–
52.50
105.00(Forecast)(Note 1) Changes to the dividend forecast most recently announced: None
(Note 2) “Dividends” above refers to dividends for common stock. With regard to dividends for class shares (unlisted) issued by
the Company with different rights than those of common stock, refer to “Dividend situation for class shares” below.

3. Forecast of Consolidated Operating Performance for the Fiscal Year Ending March 31, 2023
(From April 1, 2022 to March 31, 2023)(Percentages represent increases or decreases from the previous year results.)

Profit attributable toowners of parent

Ordinary profit(¥ million)(%)(¥ million)

Profit attributable toowners of parent per share

(%)

(¥)

27,80011.4
19,500
7.2
Full-year(Note) Changes to the forecast of consolidated operating performance most recently announced: None

636.98* Notes(1) Changes in significant subsidiaries during the current period (Changes in specified subsidiaries
resulting in change in scope of consolidation): None
Included subsidiaries: ___ (name of company(ies))

Excluded subsidiaries: ___ (name of company(ies))(Note)
Two companies are added as consolidated subsidiaries. Note that this does not constitute a change in specified subsidiaries.
For details, please refer to “(5) Changes in Significant Subsidiaries during the First Half of the Fiscal Year Ending March 31,2023” in “2. Consolidated Interim Financial Statements and Notes” on page 10 of the Attached Materials.

(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a. Changes in accounting policies due to revisions to accounting standards: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement of prior period financial statements after error corrections: None

(3) Number of shares issued (common stock)a. Total number of shares issued at the end of the period (including treasury stock)
First half of the fiscal year ending March 31, 2023

30,650,115 sharesFiscal year ended March 31, 2022

30,650,115 sharesb. Number of treasury stock at the end of the period
First half of the fiscal year ending March 31, 2023

531,125 sharesFiscal year ended March 31, 2022

434,295 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
First half of the fiscal year ending March 31, 2023

30,193,034 sharesFirst half of the fiscal year ended March 31, 2022

30,394,304 shares(Note)The Company introduced Board Benefit Trust and the Company’s shares held by the said trust are included in treasury stock.

(Non-consolidated Financial Statements)
1. Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2023
(From April 1, 2022 to September 30, 2022)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)

Operating income
First half of the fiscal
year ending March 31,
2023
First half of the fiscal
year ended March 31,
2022

Operating profit

Ordinary profit

Net income(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)

(%)

2,335

34.3

1,580

43.2

1,556

37.3

1,539

39.3

1,737

10.2

1,103

6.2

1,132

8.4

1,104

5.0

Net income per
share
(¥)
First half of the fiscal
year ending March
31, 2023
First half of the fiscal
year ended March 31,
2022

46.80

32.21

(2) Non-consolidated financial position
Total assets(¥ million)

Total net assets(¥ million)

Net assets tototal assets ratio(%)

First half of the fiscal year ending March 31, 2023
218,096
199,298
91.3
Fiscal year ended March 31, 2022
209,942
199,470
95.0(Reference)
Equity:First half of the fiscal year ending March 31, 2023: ¥199,284 million
Fiscal year ended March 31, 2022: ¥199,457 million(Note)“Equity” consists of subscription rights to shares at the end of the fiscal year subtracted from net assets, and the “Net assets tototal assets ratio” is calculated by dividing equity by total assets at the end of the fiscal year. Note that this “Net assets to total
assets ratio” is not the net assets to total assets ratio required for the Capital Adequacy Ratio Notification (Financial Services
Agency Notification No. 20 of 2006).

* This report is not subject to the scope of review by certified public accountants and audit corporations.
* Disclaimer and special note for referring to the forecast of operating performance
1. Since the Company falls under the category of specified company (a company undertaking businesses specified in
Article 17-15, Paragraph 2 of the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.), it prepares theInterim Consolidated and Non-consolidated Financial Statements for the first-half accounting period.
2. Forward-looking statements concerning financial forecasts contained in these materials are based on information
available when the forecasts were made and certain assumptions judged to be reasonable. However, the Company
makes no guarantee that these forecasts will be achieved, and actual results may differ significantly from theforecasts due to a variety of factors.

* Dividend situation for class shares
The breakdown of dividend per share for class shares with different rights to those of common stock is as follows.
(First series Class I preferred shares)
Dividend per share (¥)
First quarter
Second quarter
Third quarter
Fiscal year-end–
126.00–126.00Fiscal year ended March 31, 2022–

Fiscal year ending March 31, 2023

Annual252.00126.00Fiscal year ending March 31, 2023–
126.00252.00(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Amount paid per share: ¥20,000
3. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2022
(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate (*)
Annual dividend rate = Japanese yen TIBOR + 1.1%(c) Japanese yen TIBOROn April 1, 2021, the Japanese yen TIBOR (12-month maturity) = 0.15636%(d) Shares issued
750,000(2) Fiscal year ending March 31, 2023 (Forecast)(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate (*)
Annual dividend rate = Japanese yen TIBOR + 1.1%(c) Japanese yen TIBOROn April 1, 2022, the Japanese yen TIBOR (12-month maturity) = 0.16000%(d) Shares issued
750,000(*Annual dividend rate: Figures less than one percent are calculated to three decimal places with the third decimal placerounded off to the second decimal place.)(Class II preferred shares)

Fiscal year ended March 31, 2022

First quarter–

Second quarter
15.636

Fiscal year ending March 31, 2023–

16.000Fiscal year ending March 31, 2023

Dividend per share (¥)
Third quarter
Fiscal year-end–
15.636–(Forecast)(Notes)1. Changes to the dividend forecast most recently announced: None
2. Amount paid per share: ¥20,000
3. Computation used to calculate dividend per share(1) Fiscal year ended March 31, 2022
(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn April 1, 2021, the Japanese yen TIBOR (12-month maturity) = 0.15636%(d) Shares issued
2,000,000(2) Fiscal year ending March 31, 2023
(a) Computation
Dividend = amount paid per share × annual dividend rate(b) Annual dividend rate
Annual dividend rate = Japanese yen TIBOR + 0.0%(c) Japanese yen TIBOROn April 1, 2022, the Japanese yen TIBOR (12-month maturity) = 0.16000%(d) Shares issued
2,000,000

16.000

Annual31.27232.000Attached Materials

Index
1. Qualitative Information Regarding Consolidated Results for the First Half of the Fiscal Year Ending March 31,
2023
(1)

Operating Results ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(2)

Financial Position ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(3)

Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking Statements ꞏꞏꞏꞏꞏꞏ 3

2. Consolidated Interim Financial Statements and Notes(1)

Consolidated Interim Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 4–5(2)

Consolidated Interim Statements of Income and Consolidated Interim Statements ofComprehensive Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ

6–7

(3)

Consolidated Interim Statements of Changes in Net Assets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 8–9(4)

Notes on Premise of Going Concern ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(5)

Changes in Significant Subsidiaries During the First Half of the Fiscal Year Ending March 31, 2023 ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(6)

Changes in Accounting Policies ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(7)

Additional Information ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(8)

Significant Subsequent Event ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 10(Reference) Trust Asset Balance Table ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 12
3. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank, Ltd.
(1)

Overview of Non-consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 13(2)

Non-consolidated Interim Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 14(3)

Non-consolidated Interim Statements of Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 15

4. (Reference) Non-consolidated Financial Statements of UI Bank Co., Ltd.
(1)

Overview of Non-consolidated Financial Statements ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 16(2)

Non-consolidated Interim Balance Sheets ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 17(3)

Non-consolidated Interim Statements of Income ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 18* Financial Results for the First Half of the Fiscal Year Ending March 31, 2023
- Supplementary Information -1. Qualitative Information Regarding Consolidated Results for the First Half of the Fiscal
Year Ending March 31, 2023
(1) Operating Results
In the consolidated operating results for the first half of the fiscal year ending March 31, 2023, profit of Kiraboshi
Bank, Ltd., which makes up the majority of consolidated results, recorded substantial growth. However, reflecting
adjustments made for consolidated accounting, including elimination of internal transactions, ordinary profit came to¥13.2 billion, an increase of ¥5.8 billion year-on-year, while profit attributable to owners of parent increased by ¥3.8
billion year-on-year to ¥8.6 billion.
The main factors affecting the operating results of Kiraboshi Bank, Ltd., compared with the same period of ayear earlier, are as follows.
(i) Interest on loans and discounts*1:
An increase of ¥3.5 billion year-on-year in interest on loans and discounts, due toan increase in loan balances resulting largely from the promotion of main bankrelationship building and business financing activities, combined with rising yields.
(ii) Interest and dividends on securities:
An increase of ¥7.0 billion year-on-year attributable largely to ¥6.4 billion ofdividends received from equity-method affiliates. (Dividends from affiliates areinternal transactions and thus eliminated from consolidated results.)(iii) Non-interest income*2:
An increase of ¥2.8 billion year-on-year as a result notably of ¥3.3 billion of gains
from derivatives transactions associated with unwinding of asset swaps inconjunction with sale of foreign bonds, and a decrease of ¥0.5 billion incommission from domestic exchange services.
(iv) Expenses:
A decrease of ¥0.7 billion year-on-year due partly to a reduction in personnel
expenses.
(v) Credit-related costs:
A decrease of ¥2.6 billion year-on-year attributable partly to ongoingenhancement of the credit management system, and to a reversal of ¥0.6 billion
in reserve for possible loan losses that had been posted in consideration of theRussia/Ukraine situation, such reversal being carried out in light of the status inoccurrence of costs and other factors.
(vi) Gains (losses) on bonds: A decrease of ¥3.8 billion year-on-year due notably to the posting of ¥6.4 billion
in loss from sale of foreign bonds.
(vii) Gains (losses) on stocks and other securities:
An increase of ¥3.0 billion year-on-year due largely to an increase in gain on saleof equity securities held for pure investment.
(viii) Extraordinary profit (loss) An increase of ¥1.4 billion year-on-year due to the posting of ¥1.5 billion in gainon partial return of assets from a retirement benefit trust to Kiraboshi Bank, Ltd.
(The return of assets mentioned above resulted in an increase of ¥1.3 billion inincome taxes – deferred.)*1 Interest on loans and discounts includes interest subsidies associated with effectively interest-free, unsecuredloans on which interest would later be reimbursed by local governments.
*2 Non-interest income is the figure for constituents of gross core business profit, excluding net interest income.
(Non-interest income = trust fees + net fees and commissions + other business income (excluding
gains/losses on bonds))(2) Financial Position
As of September 30, 2022, total assets amounted to ¥6,536.1 billion, up ¥92.3 billion from the end of theprevious fiscal year, and net assets stood at ¥310.8 billion, a ¥8.4 billion decrease from the end of the previous
fiscal year due to a decrease in net unrealized gain on available-for-sale securities.
With respect to major account balances, deposits increased by ¥135.2 billion from the end of the previous
fiscal year to ¥5,292.7 billion, loans and bills discounted increased by ¥160.0 billion from the end of the previous
fiscal year to ¥4,506.1 billion, and securities decreased by ¥74.7 billion from the end of the previous fiscal year to¥938.0 billion.

2(3) Note on the Forecast of the Consolidated Operating Performance and Other Forward-Looking
Statements
There is no change to the forecasts on operating performance for the fiscal year ending March 31, 2023,
announced on May 12, 2022.

3

2. Consolidated Interim Financial Statements and Notes(1) Consolidated Interim Balance Sheets(¥ million)
As of March 31, 2022
AssetsCash and due from banks
Call loans and bills bought
Other debt purchased
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchange
Lease receivables and investment assets
Other assets
Tangible fixed assets
Intangible fixed assets
Net defined benefit assets
Deferred tax assets
Customers’ liabilities for acceptances andguarantees
Reserve for possible loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit
Call money and bills soldPayables under securities lending transactions
Borrowed money
Foreign exchange
Bonds
Other liabilities
Reserve for employee bonuses
Provision for directors’ bonuses
Provision for stock compensation
Net defined benefit liabilities
Reserve for directors’ retirement benefits
Reserve for point card certificates
Provision for loss on interest repayments
Reserve for loss on dormant deposit repayments
Provision for contingent loss
Reserves under special laws
Deferred tax liabilities
Acceptances and guarantees
Total liabilities

4

As of September 30, 2022

844,418
6,095
70,029777
1,739
1,012,755
4,346,138
6,860
22,19865,13555,636
7,918
28,952
4,769

859,795
5,285
59,799763
2,659
938,001
4,506,197
6,449
23,732
68,331
56,7799,766
15,876
9,237

5,623

6,197

(35,240)
6,443,807(32,672)
6,536,199

5,157,583
9,500
117,525
302,567
463,903
655
3,800
60,044
1,605
114
217
56
7
51
3
370
757
0
106
5,623
6,124,495

5,292,788
9,500
262,606
232,627354,942505
3,700
59,407
1,431
－
207
72
68
71
6
300
781
0
88
6,197
6,225,303

(¥ million)
As of March 31, 2022
Net Assets
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Net unrealized gain on available-for-salesecurities
Net deferred gains (losses) on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Noncontrolling interests
Total net assets
Total liabilities and net assets

5

As of September 30, 2022

27,500150,966
133,470(966)
310,969

27,500150,969
140,599(1,182)
317,885

4,186(9,679)

675
(242)
24
3,676
8,320
13
8
319,312
6,443,807

324
(242)
31
2,480
(7,085)13
82
310,896
6,536,199

(2) Consolidated Interim Statements of Income and Consolidated Interim Statements ofComprehensive Income(Consolidated Interim Statements of Income)(¥ million)
First half of the fiscal year
ended March 31, 2022
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Trust fees
Fees and commissions
Other operating income
Other ordinary income
Ordinary expenses
Financing expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary income
Gain on disposal of non-current assets
Gains on return of securities from retirement
benefit trust
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Profit before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit (Loss) attributable to non-controlling interests
Profit attributable to owners of parent

6

First half of the fiscal year
ending March 31, 2023

46,93030,03024,000
5,500
194
8,945
918
6,842
39,530
598
448
1,542
249
27,518
9,621
7,399
0
0

60,60834,843
27,530
6,348
221
8,724
6,650
10,16747,391
1,180
532
1,653
7,949
28,186
8,422
13,217
1,520
－

－

1,520

52
52
－
7,347
1,693
888
2,581
4,765
－
4,765

557
104
452
14,180
3,351
2,256
5,608
8,572
(53)
8,625

(Consolidated Interim Statements of Comprehensive Income)(¥ million)
First half of the fiscal year
ended March 31, 2022
ProfitOther comprehensive income
Net unrealized gain on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of entities
accounted for using equity method
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

7

First half of the fiscal year
ending March 31, 2023

4,765
6,654

8,572
(15,406)

6,883(13,853)

(54)
2
(183)

(350)
7
(1,196)6(12)

11,420(6,834)

11,420(6,781)－(53)

(3) Consolidated Interim Statements of Changes in Net Assets
First half of the fiscal year ended March 31, 2022(¥ million)
Shareholders’ equity
Common stock
Balance at beginning of theyear
Cumulative effects of changes
in accounting policies
Restated balance at beginningof the year reflecting changes
in accounting policies
Changes of items during thereporting period

Capital surplus

27,500Retained earnings

150,677

Total shareholders’equityTreasury stock

117,514(742)

294,949(151)
27,500150,677(151)

117,363(742)

294,798

Dividends of surplus(1,036)(1,036)

Profit attributable to ownersof parent

4,765

4,765

Acquisition of treasury stock
Disposition of treasury stock(1)

Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period
Balance at end of period

(7)

(7)

37

35

－

(1)

3,728

29

3,756

27,500150,676

121,092(713)

298,555

Accumulated other comprehensive income
Net
Net
Remeas- Total accu- SubscripTotal net
Foreignunrealized
deferred Revaluation
urements of mulated tion rights toassetscurrency
gain onsharesgains
other comreserve fordefinedtranslation
available(losses) on
benefitprehensive
land
adjustment
for-salehedgesplans
incomesecurities
Balance at beginning of theyear
Cumulative effects of changes
in accounting policies
Restated balance at beginningof the year reflecting changes
in accounting policies
Changes of items during thereporting period

13,078

189

(242)

11

2,863

15,90030

310,880(151)

13,078

189

(242)

11

2,863

15,90030

310,729

Dividends of surplus(1,036)

Profit attributable to ownersof parent

4,765

Acquisition of treasury stock(7)

Disposition of treasury stock35

Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period
Balance at end of period

6,890

(54)

－

2

(183)

6,654

(17)

6,637

6,890

(54)

－

2

(183)

6,654

(17)

10,394

19,968

135

(242)

13

2,680

22,555

13

321,1238

First half of the fiscal year ending March 31, 2023(¥ million)
Shareholders’ equity
Common stock
Balance at beginning of theyear
Changes of items during thereporting period
Capital increase of
consolidated subsidiaries

Capital surplus

27,500Retained earnings

150,966

Total shareholders’equityTreasury stock

133,470(966)

310,969

2

2

Dividends of surplus(1,496)(1,496)

Profit attributable to ownersof parent

8,625

8,625

Acquisition of treasury stock
Disposition of treasury stock

(225)

(225)

9

9

(0)

Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period
Balance at end of period

－

2

7,128

(215)

6,915

27,500150,969

140,599(1,182)

317,885

Accumulated other comprehensive income
Net
NonNetRemeas- Total accu- Subscripunrealized
Foreigndeferred Revaluation
urements of mulated tion rights to controlling
gain oncurrency
sharesinterests
reserve for
gains
other comdefined
availabletranslation
land(losses) on
prehensive
benefitfor-saleadjustment
hedgesincomeplans
securities
Balance at beginning of theyear
Changes of items during thereporting period
Capital increase of
consolidated subsidiaries

4,186

675

(242)

24

3,676

8,320

13

8

Total net
assets319,3122

Dividends of surplus(1,496)

Profit attributable to ownersof parent

8,625

Acquisition of treasury stock(225)

Disposition of treasury stock9

Net changes of items otherthan shareholders’ equity
during the reporting period
Total changes of items during
the reporting period
Balance at end of period(13,866)

(350)

－

7

(1,196)(15,406)－74(15,331)(13,866)

(350)

－

7

(1,196)(15,406)－74(8,416)(9,679)

324

(242)

31

2,480

(7,085)13

82

310,8969

(4) Notes on Premise of Going Concern
Not applicable.

(5) Changes in Significant Subsidiaries During the First Half of the Fiscal Year Ending March 31,
2023
Not applicable.
The following two companies were made consolidated subsidiaries of the Company or other Group company.
Note that this does not constitute a change in specified subsidiaries.
・ Effective July 1, 2022, the Company acquired the shares in Be.Brave Co., Ltd. and made it a consolidated
subsidiary of the Company.
・ Effective October 3, 2022, Kiraboshi Bank, Ltd., a subsidiary of the Company, acquired the shares in H.S.
Servicer Co., Ltd. and made it a consolidated subsidiary.

(6) Changes in Accounting Policies(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Group has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement”(ASBJ Guidance No. 31, June 17, 2021, hereinafter referred to as “Implementation Guidance on AccountingStandard for Fair Value Measurement”) from the beginning of the first half of the fiscal year ending March 31, 2023.
In accordance with the transitional treatment set forth in paragraph 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement, the new accounting policy prescribed by the Implementation
Guidance on Accounting Standard for Fair Value Measurement will be applied prospectively. There is no impact of
this application on the consolidated financial statements of the first half of the fiscal year ending March 31, 2023.

(7) Additional Information(Accounting estimates related to the impact of COVID-19 pandemic and the Russian aggression against Ukraine)With respect to accounting estimates related to the impact of the COVID-19 pandemic for the first half of the
fiscal year ending March 31, 2023, and assumptions used to calculate the estimates thereof, there are no materialchanges from the information provided under Significant Accounting Estimates in the Securities Report for the fiscal
year ended March 31, 2022.
With respect to accounting estimates related to the impact of Russian aggression against Ukraine, while anadditional provision of ¥632 million was posted at the end of the fiscal year ended March 31, 2022, as reserve forpossible loan losses against claims to certain groups of borrowers whose earnings may be affected, including
borrowers with commercial distribution in the region, this additional provision has been reversed in its entirety
considering the situation that was observed during the first half ended September 30, 2022, such as damages
involving the borrowers, etc. and the extent to which it has been reflected in borrower classification.

(8) Significant Subsequent Event(Conversion to a subsidiary through share acquisition）
At a meeting of the Board of Directors held on July 29, 2022, Kiraboshi Bank, Ltd. (hereinafter referred to as“Kiraboshi Bank”), a subsidiary of the Company, resolved to acquire shares in H.S. Servicer Co., Ltd. (hereinafterreferred to as “H.S. Servicer”) and convert the same to a subsidiary. On September 22, 2022, Kiraboshi Bank, Ltd.
filed a notification with the relevant authorities and on October 3, 2022, acquired the shares in H.S. Servicer,
making it a subsidiary.
(1) Name and business description of the acquired company(i) Name of the acquired company: H.S. Servicer Co., Ltd.
(ii) Business description: servicer business(2) Purpose of the share acquisition
Kiraboshi Bank provides continuous financial support to companies in financial difficulty, such as companies
with excessive debt due to the pandemic or companies that are operating in a severe business environment, in
their business restructuring efforts.
Against this backdrop and looking ahead to a post-pandemic future, a decision has been taken to make H.S.
Servicer a subsidiary and enter the servicer business on a full scale with the aim of further enhancing financial
support, claim management operations, and related activities.
H.S. Servicer is a servicer company established in November 2006 and authorized by the Ministry of Justice.
10It has a wealth of experience, operating nationwide with offices in Tokyo, Osaka, Fukuoka, and Kumamoto.
By utilizing H.S. Servicer’s nationwide network, specialized personnel, and accumulated know-how, andintegrating them with the Group’s comprehensive financial services functions, the Group will work on resolving
issues confronting regional companies and regional financial institutions throughout Japan.
We will also work on development of human resources for the future and accumulation of know-how.
The Group will continue its efforts in expanding Group functions to be able to address various management
challenges that customers face, and contribute to the sustainable development of regional economies andcommunities.
(3) Name of the counterparty in the share acquisition
H.S. Holdings Co., Ltd.
(4) Number of shares to be acquired, acquisition price, and ratio of voting rights after acquisition(i) Number of shares to be acquired
10,000 shares(ii) Acquisition price¥3.2 billion(iii) Ratio of voting rights after the acquisition 100%
(5) Details and amount of main acquisition-related costs
Advisory fees ¥8 million(6) Date of share acquisition
October 3, 2022

11

(Reference)
Trust Asset Balance Table(As of September 30, 2022)(¥ million)
AssetsLoans and bills discounted
Loans on deeds
Monetary claims

Value

Liability
2,700

Specified money in trust

2,812

2,700

Monetary claims in trust

14,65914,626Composite trusts

81,996

Total

99,468Other monetary claims

14,626

Property, plant and equipment

80,036

Movables669

Real estate

79,367

Other receivables
Other receivables
Cash and due from banks
Deposits

Value

0
0
2,104
2,104

Total

99,46812

3. (Reference) Non-consolidated Financial Statements of Kiraboshi Bank, Ltd.
(1) Overview of Non-consolidated Financial Statements
November 11, 2022
Company name: Kiraboshi Bank, Ltd.
Representative: Hisanobu Watanabe, President
Responsible person for inquiries: Taketoshi Doi, General manager of Corporate Planning Division
URL: https://www.kiraboshibank.co.jp
Telephone: +81-3-6447-5799
Note: Figures have been rounded down to the nearest million yen.

1.

Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2023
(From April 1, 2022 to September 30, 2022)(1) Results in non-consolidated operations (cumulative)(Percen tages represent year-on-year changes.)

Ordinary income

Ordinary profit

Net income(¥ million)(%)(¥ million)(%)(¥ million)(%)

First half of the fiscal year
ending March 31, 2023

59,83851.9

21,764212.7

17,332271.9

First half of the fiscal year
ended March 31, 2022

39,368

(6.2)

6,959

63.3

4,659

73.3

(2) Non-consolidated financial position
Total assets

Total net assets

Net assets to total assets ratio(¥ million)(¥ million)(%)

First half of the fiscal year
ending March 31, 2023

6,492,823

305,733

4.7

Fiscal year ended March
31, 2022

6,361,437

305,159

4.7(Reference)
Equity:First half of the fiscal year ending March 31, 2023: ¥305,733 million
Fiscal year ended March 31, 2022: ¥305,159 million(Note)“Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculated by
dividing equity by total assets at the end of the period. Note that this “Net assets to total assets ratio” is not the net assets
to total assets ratio required for the Capital Adequacy Ratio Notification (Financial Services Agency Notification No. 19 of
2006).

13

(2) Non-consolidated Interim Balance Sheets
Kiraboshi Bank, Ltd.
(¥ million)
As of March 31, 2022
AssetsCash and due from banks
Call loans
Other debt purchased
Trading account securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchange
Other assets
Tangible fixed assets
Intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers’ liabilities for acceptances andguarantees
Reserve for possible loan losses
Total assets
Liabilities
Deposits
Negotiable certificates of deposit
Call money
Payables under securities lending transactions
Borrowed money
Foreign exchange
Other liabilities
Reserve for employee bonuses
Provision for directors’ bonuses
Provision for stock compensation
Reserve for point card certificates
Reserve for loss on dormant deposit repayments
Provision for contingent loss
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net Assets
Common stock

As of September 30, 2022

786,460
6,095
70,008777
1,739
1,005,565
4,369,783
6,860
46,66861,797
5,418
22,911
5,549

826,726
5,285
59,778763
2,659
937,308
4,540,743
6,449
48,14063,028
5,994
11,610
9,408

5,633

6,207

(33,831)(31,281)

6,361,437

6,492,823

5,045,602
11,630117,525
302,567
522,372655
45,971
1,389
91
173
2
370
757
1,535
5,633

5,097,064
9,500
262,606
232,627
530,102505
44,4871,207－

6,056,278

6,187,090

163
2
300
781
1,535
6,207

43,73443,734

Capital surplus
Retained earnings

166,173
89,685

166,173
105,492

Total shareholders’ equity

299,594

315,400

Net unrealized gain on available-for-salesecurities
Net deferred gains (losses) on hedges
Revaluation reserve for land

6,660

(8,221)675(1,770)324(1,770)Total valuation and translation adjustments

5,564(9,667)305,159

305,733

6,361,437

6,492,823

Total net assets
Total liabilities and net assets
14

(3) Non-consolidated Interim Statements of Income
Kiraboshi Bank, Ltd.
(¥ million)
First half of the fiscal year
ended March 31, 2022
Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Trust fees
Fees and commissions
Other operating income
Other ordinary income
Ordinary expenses
Financing expenses
Interest on deposits
Fees and commissions payments
Other operating expenses
General and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary income
Gain on disposal of fixed assets
Gains on return of securities from retirement
benefit trust
Extraordinary losses
Loss on disposal of non-current assets

First half of the fiscal year
ending March 31, 2023

39,36830,492
23,985
5,921
194
7,225
825
631
32,408
620
448
1,871
206
25,522

59,83841,48927,527
12,962
221
6,791
7,894
3,442
38,074
1,475
307
1,754
7,942
24,790

4,187

2,112

6,959

21,764

0
0

1,520
－

－

1,520

42
42

104
104

Income before income taxes

6,917

23,180

Income taxes – current
Income taxes – deferred

1,211
1,046

3,038
2,808

Total income taxes

2,258

5,847

Net income

4,659

17,33215

4. (Reference) Non-consolidated Financial Statements of UI Bank Co., Ltd.
(1) Overview of Non-consolidated Financial Statements
November 11, 2022
Company name: UI Bank Co., Ltd
Representative: Toshikazu Tanaka, President
Responsible person for inquiries: Nobuhito Fukuda, General manager of Corporate Planning Division
URL: https://www.uibank.co.jp
Telephone: +81-3-6271-5979
Note: Figures have been rounded down to the nearest million yen.

1.

Non-consolidated Operating Performance for the First Half of the Fiscal Year Ending March 31, 2023
(From April 1, 2022 to September 30, 2022)(1) Results in non-consolidated operations(Percentages represent year-on-year changes.)

Ordinary income

Ordinary profit

Net income(¥ million)(%)(¥ million)(%)(¥ million)(%)

First half of the fiscal year
ending March 31, 2023

555

－

(915)

－

(917)

－

First half of the fiscal year
ended March 31, 2022

－

－

－

－

－

－

(2) Non-consolidated financial position
Total assets

Total net assets

Net assets to total assets ratio(¥ million)(¥ million)(%)

First half of the fiscal year
ending March 31, 2023

247,454

7,389

2.9

Fiscal year ended March
31, 2022

140,390

4,007

2.8

(Reference)
Equity:First half of the fiscal year ending March 31, 2023: ¥7,389 million
Fiscal year ended March 31, 2022: ¥4,007 million(Note)“Equity” is the value of total net assets at the end of the period, and “Net assets to total assets ratio” is calculated by
dividing equity by total assets at the end of the period. Note that this “Net assets to total assets ratio” is not the net assets
to total assets ratio required for the Capital Adequacy Ratio Notification (Financial Services Agency Notification No. 19 of
2006).
For UI Bank Co., Ltd., figures of its non-consolidated operations in the first half of the fiscal year ended March 31, 2022,
and year-on-year comparison are not provided, as it only commenced operation in January 2022.

16

(2) Non-consolidated Interim Balance Sheets
UI Bank Co., Ltd.
(¥ million)
As of March 31, 2022
AssetsCash and due from banks
Securities
Loans and bills discounted
Other assets
Tangible fixed assets
Intangible fixed assets
Reserve for possible loan losses

As of September 30, 2022

64,898502
72,000
1,427
32
1,558
(28)

54,959502
189,000
1,109
32
1,926
(75)

Total assets

140,390

247,454

Liabilities
Deposits
Other liabilities

136,221161

239,621443

Total liabilities

136,382

240,064

Net Assets
Common stock
Capital surplus
Retained earnings

2,725
2,275
(992)

4,875
4,425
(1,910)

4,007

7,389

Total shareholders’ equity
Total net assets
Total liabilities and net assets

17

4,007

7,389

140,390

247,454

(3) Non-consolidated Interim Statements of Income
UI Bank Co., Ltd.
(¥ million)
First half of the fiscal year
ended March 31, 2022

First half of the fiscal year
ending March 31, 2023－

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other ordinary income
Ordinary expenses
Financing expenses

－
－
－
－
－
－
－
－

Interest on deposits

555
550
557
0
4
0
1,470
225

－

225
9
1,142
93

Ordinary profit (loss)

－

(915)

Income (loss) before income taxes

－

(915)

Income taxes – current－

1

Total income taxes－

1

Net income (loss)

－

(917)

－
－

Fees and commissions payments
General and administrative expenses
Other ordinary expenses(Note)
Figures for the first half of the fiscal year ended March 31, 2022, are not provided for UI bank Co., Ltd., as it only
commenced operation in January 2022.

18