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

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2022
(Based on Japanese GAAP)
February 3, 2023
Company name:
THE TOWA BANK, LTD.
Stock exchange listing: Tokyo
Stock code:

8558
URL https://www.towabank.co.jp
Representative Director,
Representative:
Hiroshi Ebara
President & Chief Executive OfficerGeneral Manager of Finance and Accounting
Inquiries:
Takashi Nagai
Department
Scheduled date to file Quarterly Securities Report:
February 7, 2023
Scheduled date to commence dividend payments:
Trading accounts:–No

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

Yes
No

TEL

027-234-1111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
Nine months ended December 31, 2022
24,712 (12.7)
3,046 (36.2)
3,282
3.1
Nine months ended December 31, 2021
28,319
3.6
4,777
41.5
3,182
54.1
Note: Comprehensive income

Nine months ended December 31, 2022
Nine months ended December 31, 2021¥(11,947) million [–%]
¥553 million [(87.0)%]

Earnings per share

Diluted earnings per share

Yen88.91
86.30

Nine months ended December 31, 2022
Nine months ended December 31, 2021

Yen
50.07
50.09

(2) Consolidated financial position
Total assets

As of December 31, 2022
As of March 31, 2022
Reference: Equity

As of December 31, 2022

Net assets

Millions of yen
2,530,751
2,566,787

Millions of yen
112,175
125,209

Equity ratio
%
4.4
4.8

Consolidated capital
adequacy ratio(domestic rules)
%
10.42
10.54

¥111,389 million

As of March 31, 2022
¥124,468 million
Note: “Equity ratio” is calculated at (total net assets at the end of the period minus share acquisition rights at the end of the period minus noncontrolling interests at the end of the period) divided by total assets at the end of the period.
“Consolidated capital adequacy ratio (domestic rules)” is calculated based on the “Criteria on whether the adequacy of equity capital of the bankis appropriate in light of the assets owned by the bank, etc. in accordance with the provisions of Article 14-2 of the Banking Act (FinancialServices Agency Notification No. 19 of 2006).”

12. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen––

Yen
25.00

Yen
25.00

25.00

25.00

Year ended March 31, 2022
Year ending March 31, 2023
Year ending March 31, 2023 (Forecast)

Total

Note: Revision of cash dividend forecast most recently announced: No
Note: “Cash dividends” above is the dividend information pertaining to common shares.
3. Forecast of consolidated financial results for the year ending March 31, 2023 (from April 1, 2022 to March 31, 2023)

Full year

Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen%
Yen
33,000 (10.5)
3,000 (19.1)
3,000
71.8
75.93

Note: Revision of consolidated financial results forecast most recently announced: No
4. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2022
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

37,180,273 shares As of March 31, 202237,180,273 shares

Number of treasury shares at the end of the period
As of December 31, 2022

253,993 shares As of March 31, 2022

272,762 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2022

36,920,489 shares Nine months ended December 31, 2021

36,874,169 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special mattersThe forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to THE
TOWA BANK, LTD. (the “Bank”) and on certain assumptions deemed to be reasonable. These statements do not purport that the Bank pledges
to realize such statements. Actual performance and other results may differ materially due to various factors.

2

･Dividends by share class
The dividends per share on share classes that differ in shareholders’ rights from ordinary shares are broken down as follows.
Class 2 Preferred Stock

Dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended March 31, 2022

Yen–

Yen
0.00

Yen–

Yen
26.12

Yen
26.12

Year ending March 31, 2023

–

0.00

–
26.20

26.20

Year ending March 31, 2023 (Forecast)

TotalNotes: 1. Revision of cash dividend forecast most recently announced: No
2. Amount to be paid in per share: ¥200
3. Number and formula used as the basis for the calculation of dividends per share(1) Year ended March 31, 2022
(i) Calculation formulaDividends per share = amount to be paid in per share x (Japanese yen TIBOR + 1.15%)(*) Calculated on the assumption that the amount to be paid in per share is ¥2,000, considering the effect of theconsolidation of shares (effective October 1, 2017).
(ii) Japanese yen TIBOR
Japanese yen TIBOR (12 months) as of April 1, 2021 = 0.15636%(iii) Number of issued shares
7,500,000 shares(2)Year ending March 31, 2023 (forecast)(i) Calculation formula
Dividends per share = amount to be paid in per share x (Japanese yen TIBOR + 1.15%)(*) Calculated on the assumption that the amount to be paid in per share is ¥2,000, considering the effect of theconsolidation of shares (effective October 1, 2017).
(ii) Japanese yen TIBOR
Japanese yen TIBOR (12 months) as of April 1, 2022 = 0.16000%(iii) Number of issued shares
7,500,000 shares

3

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2022

As of March 31, 2022
AssetsCash and due from banks
Call loans and bills bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Intangible fixed assets
Retirement benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Borrowed money
Foreign exchanges
Other liabilities
Provision for bonuses
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4

376,579–
0
9,985
595,291
1,525,600
832
31,70821,952
3,250
1,544
4,913
3,598
(8,469)2,566,787

317,752
1,446
0
4,001
583,697
1,559,671
762
37,496
21,739
2,925
2,152
4,909
3,462
(9,267)2,530,751

2,135,975
292,990
84
5,776
447
43

2,206,379
200,39028
5,642–
47

1–

216
372
7
2,063
3,598
2,441,577

176
442
9
1,997
3,462
2,418,576

38,653
17,50066,990(217)
122,927(2,341)
2,298
1,584
1,541
219
520
125,2092,566,787

38,653
17,50069,304(202)
125,256(17,371)
2,147
1,357
(13,866)238
547
112,175
2,530,751

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)
Nine months ended
Nine months ended
December 31, 2021
December 31, 2022
Ordinary income
28,31924,712
Interest income
17,404
16,770Interest on loans and discounts
14,03913,938Interest and dividends on securities
3,185
2,699
Fees and commissions
4,577
4,551
Other ordinary income
1,333
151
Other income
5,003
3,238
Ordinary expenses
23,542
21,666
Interest expenses
158
120
Interest on deposits
132
94
Fees and commissions payments
2,625
2,490
Other ordinary expenses
190
101
General and administrative expenses
14,74814,804
Other expenses
5,821
4,149
Ordinary profit
4,777
3,046
Extraordinary income
63
1,038
Gain on disposal of non-current assets
63
1,038
Extraordinary losses
321
18
Loss on disposal of non-current assets
16
10
Impairment losses
304
7
Profit before income taxes
4,519
4,066
Income taxes - current
1,123
617
Income taxes - deferred
171
142
Total income taxes
1,295
759
Profit3,223
3,307
Profit attributable to non-controlling interests
41
24
Profit attributable to owners of parent
3,182
3,282

5

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

6

Nine months ended
December 31, 2021
3,223
(2,670)(2,461)(208)
553(Millions of yen)
Nine months ended
December 31, 2022
3,307
(15,254)(15,027)(226)(11,947)517(11,973)

36

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