The Chiba Bank website[IR Library]

Financial Results for the Six Months(First Half) of FY2023 ending March 2024

November 21, 2023

Table of Contents

The Mid-Term Plan

Summary of Financial Results
Summary of Financial Results3
Summary of Financial Results (Consolidated)
4
Net Interest Income
5
Average Balance / Yield of Loans and Bills Discounted
6
Balance of Loans / Deposits at Term-end
7
Loans
8
Securities
9
Impact of Rising Interest Rates① - Foreign Currency 10
Impact of Rising Interest Rates② - Yen 11
Impact of Rising Interest Rates on Interest on Loans and Deposits 12
Net Fees and Commissions
13
General & Administrative Expenses
14
Credit-related Expenses / FRA Claims
15
Stress Testing Based on Changes in the External Environment
16
Earnings Forecast
17[]

Overview of the 15th Mid-term Plan
The Mid-Term Profit Plan Outlook
PBR Improvement Logic Tree
Improving RORA
Strengthening Personal Services ①②
Branch and Corporate Channel Strategy
Capital Policy
Retail Strategy ①②③④
Cashless
Corporate Strategy ①②③④
New Businesses ①②③

24
25
26
27
28-29
30
31
32-35
36
37-40
41-43

Value Creation Bases[] DX Strategy ①②③

Business Improvement Plan
In Response to Business Improvement Orders
Initiatives for Business Improvement and Prevention of
Recurrence
Strengthening Group GovernanceFuture Activities

45-47
48-50
51-53

Alliance Strategy ①②③
Human Capital ①②③

19
20
21
22

Achieving Sustainable Management[]

Towards Realizing Sustainable Management
GX Initiatives ①②
Diversity / Governance / Regional Revitalization

55
56-57
58

Appendix
Chiba Prefecture Market Share / Personal Deposits
About Chiba Prefecture(Ref.) Earnings Results / Stock Price

60
61
62
1

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

11Summary of Financial Results222Summary of Financial Results
Progress in net income is favorable due to strong revenue performance and restrained credit costs
FY2022
1H

FY2023
1H

Gross business profit

82.6

86.9

4.3

166.3

52.2%

Net interest income

72.3

70.2

-2.1

135.9

51.6%

Net fees and commissions

14.7

14.9

0.2

29.8

50.0%

Net Trading income

0.6

0.8

0.1

2.1

41.0%

Net other ordinary income

-5.1

0.8

6.0

-1.5

-56.2%

-8.5

-2.0

6.5

-4.9

42.0%

41.0

42.1

1.1

85.0

49.6%

41.6

44.7

3.1

81.2

55.0%

50.2

46.8

-3.3

86.2

54.3%

47.3

46.0

-1.2

83.3

55.3%

-

-

-

-0.5

0.0%

Net business income

41.6

44.7

3.1

81.7

54.7%

Non-recurring gains/losses

8.2

5.4

-2.7

1.2

434.6%

-2.9

-0.7

2.1

7.5

-10.5%

Reversal of loan loss reserves

2.0

1.9

-0.1

Gains/losses related to stocks, etc.

4.8

4.6

-0.2

8.7

53.7%

Ordinary profit

49.8

50.1

0.3

83.0

60.4%

Extraordinary gains/losses

-0.1

-0.0

0.0

-0.2

25.3%

Net income

36.1

36.4

0.3

59.0

61.7%

Credit-related expenses (-)

-2.9

-0.7

2.1

7.0

-

FY2022
1H

FY2023
1H

Ordinary profit

50.7

49.9

-0.7

88.0

56.8%

Profit attributable to owners of parent

35.2

34.7

-0.4

61.0

57.0%

43.8

47.0

3.2

92.1

51.1%

Non-consolidated(Billion yen)

Gains/losses related to bonds
G&A expenses (-)
Net business income(before provisions to general allowance for loan losses)

Core business income
Excl. gains/losses on the cancelationof investment trusts
Net provisions to general allowance for loan losses (-)

Disposal of non-performing loans (-)

Consolidated(Billion yen)

ChangeChangeFY2023
Plan

Progress- #DIV/0!

FY2023Plan(before provisions to general allowance for loan losses)*Figures for the FY3/24 plan were revised from those disclosed on May 15 (November 9, 2023).

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Revenue was performing strong, mainly due to the following variables：• Domestic net interest income increased by 1.9 billion yen compared to the previous
year while overseas net interest income decreased by 4.0 billion yen. As a result, overall
net interest income decreased by 2.1 billion yen• Net fees and commissions increased by 0.2 billion yen compared to the previous year,
remained strong and limited impact of business improvement order on financial
products• Gains/losses related to bonds increased by 6.5 billion yen compared to the previous
year due to the elimination of the impact of losses on the sale of foreign bonds recorded◆Core business income (excl. gains/losses on the cancelation of investment trusts)
decreased by 1.2 billion yen◆

Credit-related expenses reversal of 0.7 billion yen◆

Net income was steady progress, on non-consolidated basis representing progress
towards the full-year plan of 61.7%. Consolidated basis progress was 57.0%.

Breakdown of Profit Attributable to Owners of Parent(difference between consolidated and non-consolidated results)
Net trading
income /Net other ordinary
income+6.1(Billion yen)G&A expenses
-1.1

35.2

Net fees andcommissions+0.2

Progress(Ref.)
Consolidated net business income◆

Net interest
income-2.1
FY2022
1H

34.7
Credit-related
expenses Other-0.6 Dif. between-2.1
consolidated andnon-consolidated-0.7

FY20233 1H

33

Summary of Financial Results (Consolidated)
Difference between consolidated and non-consolidated decreased due to the removal of transitory factors
Consolidate(Billion yen)

FY2022
1H

Subsidiaries

FY2023
1H

ChangeConsolidated net revenue

84.7

88.8

4.0

Net interest income

68.2

66.0

-2.2

Net fees and commissions

20.4

20.8

0.3

Net trading income

1.1

1.1

-0.0

Net other ordinary income

-5.1

0.8

6.0

G&A expenses (-)

44.2

45.9

1.6

Credit-related expenses (-)

-3.6

-0.5

3.1

-

-

-

-3.6

-0.5

3.1

Gains/losses related to stocks, etc.

5.2

5.0

-0.2

Gains/losses on equity-method investments

0.0

0.1

0.0

Other

1.2

1.3

0.1

Ordinary profit

50.7

49.9

-0.7

Extraordinary gains/losses

-0.1

-0.0

0.0

Net income pre-tax adjustment

50.6

49.9

-0.7

Total corporate income taxes (-)

15.3

15.1

-0.2

Net income

35.2

34.7

-0.4

-

-

-

35.2

34.7

-0.4

Net provisions to general allowance
for loan losses (-)

Disposal of non-performing loans (-)

Profit attributable to non-controlling interests

Profit attributable to owners of parent(Ref.)
Consolidated net business income(before provisions to general allowance for loan losses)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

43.8

47.0

3.2

*Showing profit/loss after reclassification forconsolidated financial statements[Consolidated subsidiaries]
Company name(Billion yen)

Investment
ratio(including
indirect)

Chibagin Securities
Co., Ltd.

100%

Chibagin Leasing
Co., Ltd.

100%

Chibagin Guarantee
Co., Ltd.

100%

Chibagin JCB Card
Co., Ltd.

100%

Total of 5 other companies 100%
Total

Profit items(after deduction of intersubsidiary dividends)

FY2022
1H

FY2023
1H

ChangeOrdinary profit

0.1

-0.0

-0.2

Net income

0.1

-0.0

-0.1

Ordinary profit

0.5

0.4

-0.1

Net income

0.3

0.2

-0.1

Ordinary profit

3.5

2.8

-0.6

Net income

2.3

1.9

-0.4

Ordinary profit

0.5

0.5

0.0

Net income

0.3

0.3

0.0

Ordinary profit

0.3

0.3

-0.0

Net income

0.2

0.2

-0.0

Ordinary profit

5.2

4.1

-1.1

Net income

3.4

2.7

-0.7

Net income according
to equity method

0.0

0.1

0.0

Dividends toparent company (-)

4.4

4.4

0.0

Dif. between consolidated
and non-consolidated*

-0.8

-1.6

-0.7

[Equity method subsidiaries]
Total of 6 companies*After adjusting for unrealized gains, etc.

444Net Interest Income
Domestic interest on loans and deposits increased steadily, while overseas net interest income declined due to a decrease in the gains on cancellations of investment trusts(Billion yen)
Net interest income
Domestic

FY2022
1H

72.3

FY2023
1H

70.2

Net interest income
Change-2.1(Billion yen)

123.6
6.0

124.5
5.8

21.9

21.5

66.2

68.2

1.9

Interest on loans and deposits

49.6

51.4

1.8

Loans and bills discounted

49.7

51.6

1.8

Deposits incl. NCDs (-)

0.1

0.1

-0.0

14.9

15.9

1.0

Bonds

1.8

2.3

0.4

Stock dividends

8.3

8.1

-0.2

Investment funds

0.6

0.8

0.1

Investment trusts

4.1

4.6

0.5

Gains on cancellations

0.9

0.8

-0.0

Other (market operations, etc.)

1.7

0.8

-0.8

6.0

1.9

-4.0

Loans and bills discounted

4.8

12.5

7.6

(Billion yen)

Foreign securities

10.1

12.5

2.3

+5.5

Foreign securities

6.6

11.6

4.9

Foreign currency funds

1.5

0.7

-0.7

Investment trusts

2.0

0.1

-1.8

Gains on cancelations

1.9

-0.1

-2.0

Other (funding, market operations, etc.)

-8.9

-23.0

-14.1

69.4

69.4

0.0

2.8

0.7

-2.1

Interest and dividends on securities

Overseas

Net interest income(excluding gains on the cancellation of investment trusts)

Gains on the cancellation of investment trusts

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

95.7

97.1

FY2019FY2020

131.8
8.1
25.1

98.5

FY2021【Year-on-year】〔Total〕-2.9％

140.3
8.8

Overseas-67.2％

31.2

100.2

FY2022

72.3
6.0
16.6

70.2
1.9
16.7

49.6

51.4

FY2022
1H

FY2023
1H

Domestic
interest anddividends on
securities,
other
+0.6％
Domestic
interest on
loans anddeposits+3.7%

Factors behind change in domestic interest on loans(year-on-year)
+5.1

+4.2

+4.3

+1.3

+1.2

+1.4

+2.1 +1.8 +1.8

Total

+0.4
Volume factors

-0.2

-5.8

FY2019-3.0-2.8

FY2021

FY2022-1.6-0.0
Yield factors-3.8

FY2020

FY2022
1H

FY2023
1H 5

55

Average Balance / Yield of Loans and Bills Discounted
Yields on domestic loans have bottomed out, and execution amount have been favorable for both corporation and residential loans
Domestic Operations
Average balance / yield of loans and bills discounted* ① ”Yield on loans and bills discounted” and ②” Yield on deposits” (which includes
NCDs) are rounded down to the second decimal place. “Difference between average
yield on loans and deposits” is the difference between ① and ②.

0.95%

0.92%

0.95%

0.89%

0.87%

0.87%

0.92%

0.89%

0.87%

0.87%

11,529.1

11,412.8

0.86%
0.86%

【Year-on-year】
Average yieldon loans andbills discounted-0.00%
Difference
betweenaverage yieldon loans anddeposits*-0.01%(Billion yen)

10,049.3

FY201910,584.5

FY202011,048.2

FY2021

Excluding Ministry of Finance loans

FY2022

11,840.6

FY2022
1H

FY2023
1H

Avg. balance

9,891.9

10,391.5

10,844.0

11,276.1

11,163.3

11,643.9

Yield

0.97%

0.94%

0.91%

0.89%

0.88%

0.88%

Trends in corporate loans amounts executed

Averagebalance ofloans and bills
discounted+3.7％

Overseas Operations
Average balance / yield of loans and bills discounted
5.19%
3.20%

2.73%
1.32%
1.06%
(Billion yen)

1.00%

1.06%
0.97%

1.06%

478.2

FY2019418.1

FY2020

2.23%

1.04%

406.2

422.7

433.3

FY2021

FY2022

FY2022
1H

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

0.69%

481.2

FY2023
1H*Extraction of loans on deeds, loans on bills, and discounts on traders (excluding loans on deeds, spot loans, etc.)(billion yen)500

2021/3期

2022/3期

2023/3期

2024/3期

400

300
1Q

2Q

3Q

4Q

Trends in residential loans amounts executed【Year-on-year】
Average yieldon loans andbills discounted＋2.96%
Difference
betweenaverage yieldon loans anddeposits*-0.35%

Averagebalance ofloans and bills
discounted+11.0％(billion yen)100

2021/3期

2022/3期

2023/3期

2024/3期

80

60
1Q

2Q

3Q

4Q

6
6

Balance of Loans / Deposits at Term-end
The pace of increase in loans to corporation loans, residential loans, and other consumer loans has been sustained, and deposits have also steadily increased

Balance of loans at term-end(Billion yen)

12,153.6
11,691.3
11,206.4 265.4
470.9
243.7
10,616.5
189.9
409.7
240.3
184.2
409.8
178.6

316.9
423.1
199.6

3,917.7
3,736.1

3,834.3

Balance of domestic loans at term-end (by region)

12,520.6
11,934.4
310.9
440.2
194.5

【As compared to376.8 September 30, 2022】
450.4〔Total〕+4.9％
206.6
Overseas3,970.8
3,866.2

3,632.3

operations+21.1％
Public bonds
+2.3％
Other
consumer
loans
+6.2％
Residential
loans
+2.7％

(Billion yen)

10,376.2
1,588.4
1,615.6536.9
6,635.1
3/202010,962.6

1,711.5

11,425.9
1,818.0

11,836.7

11,623.5

1,938.2

1,875.5

12,143.8
2,010.0

2,045.9

1,995.9

562.8

581.0

590.6

583.6

596.2

6,902.2

7,069.7

7,261.8

7,168.4

7,388.8

3/2021

3/2022

3/20239/2022

Specialbranches*+7.6％

2,148.6

1,957.1

1,786.0【As compared to
September 30, 2022】〔Total〕+4.4％
Retail branches
outside Chiba Pref.
+7.1％

Chiba Pref.
(regional
revitalization areas)+2.1％

Chiba Pref.
(growth areas)+3.0％

9/2023*Tokyo Head Office, Shinjuku
Branch, and Osaka Branch

Balance of deposits at term-end

4,839.0

1,316.3
3/20205,179.3

1,453.1
3/2021

5,426.3

1,504.2
3/2022

5,753.7

1,542.4
3/2023Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

5,574.7

1,547.7
9/2022

5,902.7

1,613.1

SMEs
+5.8％

Large/midsizedcorporations+4.2％

15,424.4
14,787.6
332.7
14,104.5
266.5
1,117.7
982.0
282.0
12,788.9
956.3
289.3
3,055.5783.8
3,003.7
2,822.3
2,410.3(Billion yen)

9,305.2

15,424.2
15,024.5
372.3
901.8
3,003.4

3,114.9

10,918.3
10,043.7 10,535.3

10,746.9 11,076.0

3/20219/2022

3/2022

3/2023

Overseas
operations,
JOM accounts-5.9％
Public sector-2.0％
Corporate+3.7％
Retail+3.0％

9/20233/2020

350.0
883.1

【As compared to
September 30, 2022】〔Total〕+2.6％7

9/20237
7

LoansStrong demand for housing has led to a strong loan portfolio with a high conservation ratio, contributing to the soundness of our loan assets, one of our strengths

Number of corporate borrowers (domestic only, excl. public)(Borrowers)

51,57850,734

Proportion of loans by industry (as of 3/2023)

51,453
Chiba
Chiba
Bank

49,332Wholesale, Manufa
retailcturing

Real estate,leasing※Non-Consolidated (Source: Nikkin)

Finance,insurance

Other

28.3%
7.5%

Real estate
rental 22.3%

6.7% 4.2%

53.3%

47,866
46,931

Regional

46,18198％ areSMEs, etc.

banks'
Average of regional
banks
average(62 (62)
lines)
3 megaMega banks'
3Chibaline averageBankaverage

3/18

3/19

3/20

3/21

3/22

3/23

9/23

0%

17.6%

8.3%

20.7%

10%

9.3%

8.9%

20%

4.8%

16.5%

30%

40%

60.0%

11.9%

50%

42.0%

60%

70%

100%

※Non-Consolidated (Source: Nikkin)

Post-COVID
605.6

90%

Proportion of loans by collateral (as of 3/2023)

Guarantee association loan balance(Billion yen)

80%

584.4

552.8
521.2

512.7

Chiba
Bank

Real estate

Guarantee

58.1%

13.1%

Chiba

Credit

Other

28.3%

0.5%

488.0
Regionalbanks'
average
(62)

449.0
383.9

370.1

3 megabanks'
average

Mega 3 line average

3/15

3/16

3/17

3/18

21.6%

Average of regional banks

415.5

3/19

3/20

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

3/21

3/22

3/23

9/23

7.3%

0%

35.2%

25.3%

10%

20%

0.7%

42.5%

63.7%

30%

40%

50%

60%

3.7%

70%

80%

90%

100%

8
8

Securities
By managing portfolios with reduced risk, unrealized gains after taking into account hedge remains high level
Balance*1 / Average remaining maturity*2 of securities*1 Excluding unrealized gains/losses*2 After hedging via asset swaps

5.2

5.1

(Years)4.2【As compared toMarch 31, 2023】

4.2

4.1
2.7

2.3

1.7

2,315.1
2,198.4

226.4

282.7

165.8

186.8

286.0

310.8

366.7

169.4

2,485.1

2,452.3(Billion yen)

2,011.2

2.1

2.0

373.4

351.0

546.3

561.9

497.2

541.5

461.5

399.0

3/20203/2021

3/2022

762.3

658.1

575.4

531.6

518.9

99.8

101.0

105.0

110.5

111.3

553.2

540.1

498.6

568.9

3/20239/2023

Held-to-maturity securities
7.7

7.8

8.6

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

9.3

Averageremainingmaturity ofyen bonds+0.0 years

Unrealized gains/losses on other securities* Including overseas CDs(Billion yen)

150

30.0
7.9
Yen 0.1100

5.2 92.4
Yen 2.6
144.1

Average50
remaining〔Total〕+5.9％
maturity of↑Gainsforeign bonds
0+0.1 years↓Losses〔Total〕+1.3％
Government
bonds-19.9％
Municipal
bonds
-7.9％
Corporatebonds, etc.
-0.8％

Investment
trusts, etc.
+2.8％
Stocks-1.1％Foreigncurrency
securities+15.8%

182.2

200【As compared toMarch 31, 2023】

26.4
148.1

101.9

144.4

150.3

-8.3
-14.5

-11.4
-30.0
-6.8

91.8
-7.2

-50

98.7
189.4

-32.6
-57.6
Other -0.4-100
3/20203/2021

3/2022

3/20239/2023

Stocks+39.1 billion yen
Yen bonds-21.2 billion yen

Foreign bonds-27.6 billion yen
Other+6.4billion yen■After taking into account unrealized gains/losses on deferred hedge swaps
200

174.9

(Billion yen)

150
100
50
↑Gains0↓Losses-50

Yen 2.3
80.6

30.0
Foreign 0.3
Yen 0.4
144.1

147.5

26.4
155.5
144.4

115.7
150.3

189.4

91.8
-6.1
-7.2

-5.1
-10.2

-14.0
-13.7
-6.8

-20.9
-20.5
Other -0.4

3/20239/2023-100

3/20203/2021

3/2022【As compared toMarch 31, 2023】

Total+31.7 billion yen
Stocks+39.1 billion yen
Yen bonds-6.9 billion yen

10.4*Balance changes are due to exchange factors
Value in original currency is unchanged

Total-3.2 billion yen

Foreign bonds-6.8 billion yen
Other+6.4 billion yen

99Impact of Rising Interest Rates① - Foreign Currency Replacement of some bonds in response to high overseas interest rates
Asset and funding structure$8,165 mil. as of Sep.2023

USD

Euro
Funding

Asset

100%

Other 15%

Other, short-term
23%

80%
60%
40%
20%
0%

Loans (all floatinginterest rate) 34%

Floating rate bonds
35%
Fixed rate bonds
16%$1,296 mil.

Other 3%

* Short-term funding and loans with amaturity of one year or less areclassified under “floating interest rate”.

50%

Other, long-term
1%(Billion yen)Fixed rate bonds
13%

Corporate bonds
7%

Interest rate structureInterest rate structure

Floating interest
rate 100%* Short-term funding and loans with amaturity of one year or less areclassified under “floating interest rate”.

Currency swaps
35%

Fixed rate 7%

Floating rate bonds
68%

0%€ 118 mil.

Interest rate/asset
structure
Interest rate/asset …

Asset details* The Bank has now switched to calculating
valuation gain/loss using an internalmanagement from an approximate value
calculated using the simplified method* Not factoring in impact of increasing interest
rates on credit risk

Loans (all floatinginterest rate) 16%

NCD 11%
Deposits
5%

Fixed rate 16%[Impact of a parallel 10bp increase ininterest rates]

Funding

Repo 18%

Floating interest
rate 93%

Floating interest
rate 84%€944 mil. as of Sep. 2023
Asset

100%

Impact on existing loans andsecurities fromincreased foreign currencyinterest rates (approx.)

Funding method

Interest rate
structure
Interest rate…

USD

Euro

Net interest income

-0.07

-0.01

Valuation
gains/losses

-1.58

-0.23

Foreign bond

-0.93

-0.09

Stocks /investment
trusts

-0.64

-0.14

*Investments in foreign currencies other than USD and EURO worth $281 million

Changes in the foreign bond portfolio
USD fixed bonds
Balance (Billion yen)

3/31/2023
166.9

Yield (%)

Around 3.5%

Procurement costs (%)

Around 4.5%

Total foreign bonds■Operations in the first half
USD fixed bonds

U.S. dollar bond replacement operations in the first half of the year

USD fixed bonds

Purchase

3/31/2023

Balance (Billion yen)

633.8

Interest margin (%)

About 0%

Unrealized gains/losses(Billion yen)

-30.0

After Hedge(Billion yen)

-13.7

Balance(Billion yen)

22.3

-23.1

Yield (%)

Around 5.5%

3.0～3.5%

Losses on sales(Billion yen)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Sale andredemption-0.8

Foreignexchange
factor
20.3-

Balance (Billion yen)

9/30/2023
186.4

Yield (%)

3.5%～4.0％

Procurement costs (%)

About 5%

Total foreign bonds

9/30/2023

Balance (Billion yen)

739.4

Interest margin (%)

About -0%

Unrealized gains/losses(Billion yen)

-57.6

After Hedge(Billion yen)

-20.5

○ In response to the continued higherthan-expected U.S. interest rates, theBank switched from low-yielding bonds
to high-yield bonds■Investment policy in the second
half○ The Bank will continue to improve
interest margins by selling low-yieldbonds and replacing bonds.

1010Impact of Rising Interest Rates② - Yen While continuing to control interest rate risk, the Bank will improve yields by investing in fixed-rate bonds when interest rates rise
Investment and funding structure
Yen bonds￥18.8 tri. as of Sep. 2023

Interest rate sensitivity of unrealized gains/losses (10bp)
Yen bond interest rate sensitivity by term (GPS)… ①
Over
Over
Over
Over
Over
~ 1 year 1 year~ 3 years~ 5 years~ 7 years~
10 years
3 years 5 years 7 years 10 years

100%
Marketability
procurement, etc. 15%
Marketability
investment, etc. 31%

80%(Billion yen)Total

3/31/2023

-0.1

-0.6

-0.4

-0.6

1.0

-1.3

-4.2

9/30/2023

-0.1

-0.5

-0.4

-0.8

-0.7

-1.5

-4.2

* Change in valuation gains/losses assuming each interest rate term increases by 10bp

10BPV Total (① + ②)
Total
-3.8 billion yen

Yen-denominated trust interest rate sensitivity... ②
60%

Market-linked interest
rate 13%

Total +0.3 billion yen( -0.2 billion yen change from Mar. 2023)*By holding bond bear funds,
valuation gains/losses will
improve as interest rates increase

Variable deposits 63%

Changes in yen bond portfolio

Short-term prime rate,
etc. 25%

Yen bond

40%

Fixed (residential) 3%

20%
Fixed (corporate) 23%
Fixed deposits 17%

Investment securities
5%

Equity funding 5%

Asset

Funding

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

3/31/2023

9/30/2023

Balance (billion yen)

1,054.2

961.0(Of which, Fixed Bonds)

803.2

739.9

0.2%～0.25％

Around 0.25％

Unrealized gains/losses(billion yen)

-11.6

-32.6

After hedged(billion yen)

-14.2

-20.9

Fixed Yield (%)

0%■Operations in the first half
○ Investing in long-term government bonds withasset swaps to control interest rate risk
○ Invested in fixed bonds in stages when interest
rates rose, contributing to an increase in yields■Investment policy in the second half
○ Carefully build up fixed-rate bonds to improveyields while holding down the risk amount andunrealized losses

1111Impact of Rising Interest Rates on Interest on Loans and Deposits
Interest on loans increased by 2.8 billion yen in the final year of the Mid Term Plan due to the recent rise in interest rates
Estimated increase in interest income on loans
based on current interest rate environment

Transfer from marketable investment

FY2025

FY2023+ 0.3 billion yenchange from initial plan

+ 2.8 billion yenchange from the Mid Term Plan
(ROE +0.16%)(ROE +0.02%)◼

Policy to reduce market-based funding and gradually reduce current accountbalances at the Bank of Japan◼

Transferred from the current account balance to 5-year JGB investments, net
interest income is expected to increase by 0.4 billion yen per 100.0 billion
yen [assumed to be the purchase yield of 0.4%] (ROE: +0.02%)■ Calculated based on the market rate on October 30 (10-year JGB yield: 0.95%)
Assum-ptions ■The forecast for FY2025 is calculated based on the current loan composition

Estimated increase in net interest incomein the event the Bank of Japan terminates negative interest rates
Target Assets
Market-linked loans

Reference rate
①TIBOR

Increase in net
interest income

Yen investment and funding structure￥18.8 tri. as of Sep. 2023

Impact on ROE(Trillion yen)

+ 2.3 billion yen
per year+0.14%

Assum ■TIBOR is expected to rise 10bp due to the end of negative interest rates-ptions

Marketability
investment, etc.
5.8

Target Assets
Fixed interest rate
loans

Reference rate
②Swap rate

+0.8 billion yen
in FY2025①

Impact on ROE

Marketability
procurement, etc.
2.9

Increase ininterest rates
on timedeposits

Market-linked
interest rate 2.3

Short-term prime
rate, etc.4.7

Assum-ptions ■Assuming a pass-through rate of about 60 percent against a rise in interest rates

Fixed (corporate)
4.4

Investment
securities 1.0

Afterchange5 years0.002%

0.07%

10 years

0.002%

0.2%◼ Investment securities(Due to the difficulty of comparison with theinitial plan due to the change in the investment
plan)

Fixed deposits
3.1
Equity funding 0.9

Asset

Beforechange(Assuming an increase after the end of the zerointerest rate)

Fixed (residential)
0.4②

PeriodItems excluded from trial
calculation in this simulation◼ Short-term prime rate-linked loans

Variable deposits
11.8+0.05%■Based on historical yield curve movements, the increase is adjusted for eachmaturity. (10 years +10bp, 5 years +6bp, 3 years +4bp)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

0.1 billion yen increase in interest expense expected due
to higher interest rates on time deposits (ROE:-0.00%)(from Nov. 13)

Estimated increase in net interest income in FY2025
for each 10bp increase in future long-term interest rates
Increase in net
interest income

Impact on thefunding side

Funding③◼ Variable deposit(Assuming an increase after the end of the zerointerest rate)

1212

Net Fees and Commissions
Achieved record highs for the fourth consecutive fiscal year due to favorable trends in corporate solutions, trust and inheritance, and cashless businesses
Net fees and commissions

FY2023

FY2022
1H

FY2023
1H

Change

14.7

14.9

0.2

29.8

1.2

Fees and commissions received

23.6

25.0

1.4

53.4

4.3

Fees and commissions payments (-)

8.9

10.1

1.1

23.6

3.1

<Main breakdown>

0.0

0.0

0.0

0.0

0.0

3.2
0.5

Investment trusts and personal annuities

3.1

3.2

0.0

6.2

- 0.1

7.7

Investment trusts (trust fees)

0.8

0.9

0.0

1.8

0.0

1.0

Investment trusts (sales fees)

0.4

0.3

- 0.0

1.0

0.1

Annuities and whole-life insurance

0.9

0.8

- 0.0

1.4

- 0.4

Level-premium life insurance

0.6

0.8

0.2

1.6

0.4

Financial instrument intermediary

0.2

0.1

- 0.0

0.1

- 0.2

7.2

7.5

0.3

15.8

0.1

Private placement bonds

0.2

0.1

- 0.0

0.4

0.0

Syndicated loans

5.5

6.0

0.5

12.3

0.1

Advisory contracts

0.2

0.2

- 0.0

0.5

0.0

M&A

0.3

0.1

- 0.2

0.6

0.0

Management succession

0.1

0.2

0.0

0.4

- 0.2

Business-matching

0.7

0.7

0.0

1.5

0.0

Trust/inheritance-related business

0.7

0.8

0.0

1.6

0.1

Cashless operations

0.7

0.9

0.1

3.2

1.6

(Billion yen)
Net fees and commissions

Corporate solutions(plan）

Payment and settlement transactions

6.2

6.4

0.2

12.8

0.2

Guarantee charges and group insurance costs (-)

5.3

5.8

0.5

13.8

0.7

* Starting from the FY2023, management succession advisory services will be recategorized as corporate solutions
from trust/inheritance-related business. (Figures in brackets indicate the result after recategorization.)* Plan for FY2023 is revised from the figures disclosed on May 15, 2023 (disclosed on November 9, 2023)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

【Year-on-year】〔Total〕+0.2
Other
-0.4

Change(Billion yen)

26.1
22.6

4.4
0.6
8.1
1.1

10.0

11.8

FY2019FY2020

27.5
4.4
1.3

7.1

28.6
3.4
1.6
6.3
1.4

1.4

13.2

FY2021

15.7

FY2022

Cashless
+0.1

14.7

14.9

2.8
0.7
3.1

2.4
0.9
3.2

0.7

0.8

7.2

7.5

Trusts,inheritance+0.0

FY2022
1H

FY2023
1H

Corporate
solutions+0.3

Financial
product sales+0.0

Corporate solutions-related revenue【Year-on-year】〔Total〕+0.3

15.7(Billion yen)
11.8
10.0
1.1
0.2 0.2

1.2
0.2 0.2

0.3

13.2
1.3
0.3
0.6

9.3

+0.0

0.5

Management
succession

0.4
0.7
0.1
0.3

7.5
0.7
0.2
0.1

+0.0
M&A
-0.2
Advisory
-0.0

5.5

6.0

Syndicatedloans, etc.
Private-placement
bonds

7.2

0.1

7.5

Business
matching

1.5
0.4
0.7

9.9

12.1

0.2

0.2

+0.5

0.6

0.4

0.4

0.3

0.2

0.1

FY2019FY2020

FY2021

FY2022

FY2022
1H

FY20231H

13*Including management succession advisory operations(updated retroactively)

-0.0

13
13

General & Administrative Expenses
OHR rose slightly due to strategic investment, but remained at a low level compared with other banks
G&A expenses / OHR
Non-consolidated(Billion yen)

FY2022

FY2023

1H

1H

Major factors behind increase in G&A expenses
FY2023

Change(plan)

Change(Billion yen)G&A expenses (-)

41.0

42.1

1.1

85.0

2.5

Personnel

Personnel (-)

19.7

20.2

0.4

40.3

0.9

(-)

Non-personnel (-)

18.0

18.7

0.6

38.5

1.6

Taxes (-)

3.1

3.2

0.0

6.2

-0.0

45.76%

47.82%

2.06%

49.9%

2.1%

OHR

FY2023 1H (results)

FY2023 (plan)

Pay raises +0.2

Pay raises +0.5

+0.4 Increased health insurance premiums +0.2

+0.9 Increased health insurance premiums +0.4
Reduced G&A expenses -0.2
Revenue strengthening measures,

Revenue strengthening measures,
strategic investments +0.3

Nonpersonnel +0.6

+1.6

(-)

46.64%

48.50%

1.86%

48.8%

1.4%

Taxes (-)

Increased amortization, running costs,
etc. +0.8
Rationalization, cost reduction -0.7

Consolidated
OHR

strategic investments +1.0
Transfer from Chibagin JCB card +0.4

+0.0

-0.0

Lower taxes, etc. -0.1

* OHR: Expenses / (net business income – bond-related gains/losses, etc. +net provisions to general allowance for loan losses + expenses）* Plan for FY2023 is revised from the figures disclosed on May 15, 2023 (disclosed on November 9, 2023)

Trends in OHR

OHR comparison with other banks〔FY2022 non-consolidated basis〕

54.78% 54.61% 55.00%

Lower value indicates more efficient management

52.02%
53.42% 52.99% 52.94%
50.90%【Year-on-year】
47.73%
47.37%

48.50%
46.64%

Consolidated
OHR+1.86%

47.82%

Nonconsolidated
OHR+2.06%

45.76%

68.1%

49.4%

47.7%

Chiba Bank
千葉

FY2018FY2019FY2020

FY2021

FY2022

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

FY2022
1H

FY20231H

3 mega banks Regional banks, 2nd-tieraverage*average*
メガ3行平均地銀･第二地銀平均*Source: Calculated by simple average from Nikkin Reports[Expenses / (gross business profit – bond-related gains/losses]

14
14

Credit-related Expenses / FRA Claims
New NPL is remained low level, and the NPL ratio, one of the lowest among regional banks, declined further.
Disclosed claims under the Financial Reconstruction Act /non-performing loan ratio

Credit-related expenses
FY2022 FY2023(Billion yen)

1H

1H

FY2023
Change(plan)

Change

-2.9

-0.7

2.1

7.0

6.6

Net provisions to general allowance for loan losses (-)

-3.2

-1.9

1.2

-0.5

1.8

Disposal of non-performing loans (-)

0.2

1.1

0.9

7.5

4.7

Credit-related expenses (-)

0.96%

0.93%

0.89%

118.3

115.3

113.2

114.9

112.7

18.5

16.2

17.1

18.2

17.3

55.5

56.9

54.9

52.7

51.1

(Billion yen)

2.4

2.0

-0.4

9.2

3.1

Net provisions to specific allowance for loan losses (-)

1.1

-0.0

-1.0

0.4

-1.0

New downgrades (-)

2.4

2.7

0.2

10.0

3.1

Existing non-performing loans (-)

0.4

0.1

-0.2

0.4

-0.0

Collections, etc.

0.4

0.8

0.4

1.1

-0.0

2.2

0.8

-1.3

1.7

-1.6

44.2

42.2

41.1

43.9

44.2

-4bp

-1bp

3bp

5bp

5bp

3/20203/2021

3/2022

3/20239/2023

Net credit cost ratio (-)

Net credit costs(－)transition(Billion yen)

9.5

10.4

10.9

8.3

1.2
-2.6

3.2
-1.2

〔FY2022 non-consolidated basis〕

7.3
6.1
1.5
-1.7

2.4

2.0

-2.3

-3.2

-3.4

-2.2

-1.9
-0.8

-2.9
8bp

9bp

6bp

0bp

FY2019FY2020

FY2021

FY2022

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

2.11%

Write-offs / Netprovision to specificallowance, etc. (-)
-0.4

0.3

-0.7

-4bp

-1bp

FY2022
1H

FY2023
1H

Non-performing
loan ratio-0.04%〔Total〕-2.1
Bankrupt andeffectively
bankrupt claims-0.9
Doubtful claims-1.6
Need-attention
claims+0.3

Non-performing loan ratio comparison with other banks【Year-on-year】〔Total〕+2.1

7.1↓Gains

1.02%

Write-offs/net provisions to specific allowance, etc. (-)

Recoveries of written-off claims↑Losses

1.10%【As compared toMarch 31, 2023】

Net provisions togeneral allowance
for loan losses (-)+1.2
Recoveries ofwritten-off claims-1.3

Ratio (-)
+3bp

0.93%

0.84%

Chiba

Mega 3 line average

Chiba Bank

3 mega banks
average*

Averag e o f regio nal and second-tier region al banks

Regional banks, 2nd-tieraverage** Source: Simple average calculated from Nikkin Report15
15

Stress Testing Based on Changes in the External Environment
Accurate assessment of credit status / implementation of support for accompanying by considering solutions
Support for accompanying

Stress testing

Micro factor analysis: Enterprise impact survey

Test targets: All credit customers

Factors affecting (multiple answers allowed)

Extraction based on micro factors① Borrowers with a Group credit amount of ¥0.1 bil. or more (excluding residential real estate leasing,finance, and public sectors, etc.)② Borrowers whose financial condition has been independently ascertained by the credit examination section

Effect4,400
borrowers

Extraction based on Macro factors

Estimation of credit costs basedon the actual state of eachcompany

Of all creditors, excluding those selected based on micro factors,
those that appear to have been affected by the deterioration in
the external environment
Credit costs are estimated by taking
into account the effect of eachindustry based on the BOJ Tankan.

(Billion yen)No effect
2,288
borrowers

Micro factor

Macro factors

Total

FY2023 2H

4.8

1.1

5.9

FY2024

7.4

4.5

12.0

Breakdown of external factors(multiple answers allowed)
Factors

Rate

Factors

Number ofcompanies
affected

Rate

Cost of raw
materials

40.0%

COVID-19

1,495

22.4%

38.1%

Labor
shortage

1,577

23.6%

high fuelpricesWeak yen

28.5%

Externalfactors

3,794

56.7%

Logistics

31.9%

Others4.8%

Macro factor analysis: Thematic studies
Investigate risks by focusing on industries such as transportation and printing.

Interest-free and unsecured loan borrowers
Investigation of borrowers deemed to require financial support
after repayment starts

Solution review
meeting
Business Support
Division
Sales-related
departments

Individual toss-up
Toss up awareness of issues that sales branches have regarding theircustomers

Group companies

Review of the first half
(Billion yen)

Initial forecast
Actual results

Micro factor

Macro factors

3.2

1.0
2.0 (a)About 75.3% of new downgrades in the first half of the fiscal year are
predicted by stress tests and maintain high precision(90.8% excluding one large borrower).

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Not anticipated at

Total

the time of testing
ー

4.2

0.6

2.7 (b)From stress test forecast
borrowers(a)÷(b) =75.3%

Past achievements
Supportcompleted

150 borrowers
Under support

1,100 borrowers
No support required

950 borrowers
Approximately 2,200 borrowers to
be considered for support

Strengthening hands-on
supportBusiness Consulting Office, which
was established in April, provides
group-wide support, including the
dispatch of employees.

1616Earnings Forecast
Although the plan was revised based on analysis of the current situation and response to changes in the environment, it is expected that consolidated net income will be achieved at the initial planNon-consolidated

ChangeFY2023(Billion yen) FY2022

1H

2H

Full year

results

plan

plan

Change Progressinitialplan

Gross business profit

155.5

86.9

79.3

166.3

10.7

52.2%

-4.0

Net interest income

140.3

70.2

65.6

135.9

-4.4

51.6%

2.4

Net fees and commissions

28.6

14.9

14.9

29.8

1.2

50.0%

-1.4

1.3

0.8

1.2

2.1

0.7

41.0%

-0.1

-14.8

0.8

-2.4

-1.5

13.2

-56.2%

-4.8

-20.0

-2.0

-2.8

-4.9

15.0

42.0%

-6.5

G&A expenses (-)

82.5

42.1

42.8

85.0

2.5

49.6%

0.2

Net business income

73.0

44.7

36.5

81.2

8.2

55.0%

-4.2

93.0

46.8

39.3

86.2

-6.8

54.3%

2.2

85.3

46.0

37.2

83.3

-2.0

55.3%

1.7

Net Trading income
Net other ordinary income
Gains/losses related to bonds(before provisions to general allowance for loan

Core business income
Excl. gains/losses on the cancelationof investment trusts

-

-

-0.5

-0.5

Net business income

73.0

44.7

37.0

81.7

Non-recurring gains/losses

8.7

5.4

-4.1

1.2

0.3

-0.7

8.2

7.5

7.1

Reversal of loan loss reserves

0.9

1.9

-1.9

-

Gains/losses related to stocks, etc.

8.3

4.6

4.0

8.7

0.3

53.7%

3.7

81.7

50.1

32.8

83.0

1.2

60.4%

±0.0

Net provisions to general allowance for loan losses (-)

Disposal of non-performing loans (-)

Ordinary profit-0.3

Extraordinary gains/losses

58.1

Net income

0.3

Credit-related expenses (-)

-0.0
36.4
-0.7

-0.1
22.5
7.7

-0.2
59.0
7.0

-0.5

0.0%

-0.3

8.7

54.7%

-3.9

-7.4

434.6%

3.9-10.5%

0.3-0.9 #DIV/0!

±0.0

0.1
0.8
6.6

25.3%
61.7%
-

FY2022(Billion yen)

1H
results

2H
plan

±0.0
±0.0
from

Full year
plan

±0.0

Change2024/3

Consolidated

Breakdown of Profit Attributable to Owners of Parent(difference between consolidated and non-consolidated results)

fromChange Progressinitialplan(Billion yen)

60.2

-6.8⇒-4.4 Upward swing in domestic net
interest income due to theimpact of higher interest rates(Billion yen)

135.9

- 4.4

2.4

132.6

1.1

4.0

Interest on loans and deposits

100.2

104.1

3.8

0.3

Interest and dividends on securities

28.7

26.1

- 2.5

4.6

Gains/losses on cancellations

5.8

2.7

- 3.1

0.9

8.8

3.2

- 5.6

- 1.6

1.7

0.1

- 1.6

- 0.4

28.6

29.8

1.2

- 1.4

6.3

6.2

- 0.1

- 1.7

15.7

15.8

0.1

0.0

Trust/inheritance-related business*2

1.4

1.6

0.1

- 0.1

Cashless operations*2

Domestic

Overseas
Gains/losses on cancellations

Net fees and commissions

Ordinary profit±0.0

Investment trusts and personal annuities

Profit attributable to owners of parent

60.2

34.7

26.2

61.0

0.7

57.0%

±0.0

Corporate solutions*1(before provisions to general allowance for loan

10.2

51.1%

-4.2

*1 Starting from FY2023, management succession advisory business will change from trust/inheritancerelated to corporate solutions*2 Cashless planned value includes 1.1 billion yen associated with absorption-type merger with JCB

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

FY2023(plan) Change

Changefrom intial
plan

131.5

56.8%

92.1

FY2022-0.1

Planning to record
gains on the sale ofstocks140.3

Net interest income

1.0

45.0

-6.6

Net interest
incomeFY2022(results)

Dif. between
consolidated-4.9⇒-0.7 and nonconsolidated

Credit-related
expenses Other+2.6⇒+1.2

88.0

47.0

61.0

-2.2⇒-2.5

Net fees andcommissions

38.0

81.8

+18.9⇒+14.0
G&A expenses

49.9

Consolidated net business income

Net trading
income /Net otherordinary income

Progress in fees andcommissions fromfinancial products
is behind plan

86.9

(Ref.)

Planning to sellbonds at a loss

1.6

3.2

1.6

- 0.1

Payment and settlement transactions

12.5

12.8

0.2

0.4

Guarantee charges and group insurance costs (-)

13.0

13.8

0.7

0.0

FY2023(plan)
Domestic loanbalance/yield
-0bp

0.89%

0.87%

+0bp

(Billion yen)
11,529.1

Excluding

0.88% Ministry of

0.87%
11,950.1

11,751.8
Excluding
Ministry of
Financeloans

11,276.1

FY2022Financeloans

FY2023(plan)

17
17

Business Improvement Plan

18
18

In Response to Business Improvement Orders
Focusing on the Purpose and Vision, we are reinforcing our customer-focused approach.

PurposeTo create a local community better suited to bringing each person’s hope to life

Vision

An Engagement Bank Group that works closely with the community“Engagement Bank Group”
A Bank Group that seeks to keep growing together along with the entire region by providing value through deep connections with all of
its stakeholders including customers, shareholders, and employees

History to date“Three Pledges”- Action principles for the achievement of the Purpose and the implementation of fiduciary duty-

In 2023

Whenever making a proposal to a customer or making a business decision,

June 23: Received Business Improvement Order
July 24: Submission of Business Improvement Plan
August 31 : Announcement of improvement andrecurrence prevention measures
October 16 : Announcement of progress ofimprovement and recurrence prevention
measures

we always stop and think,

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

"Will this proposal or decision lead to the realization of the customer's wish?,”"Will this proposal or decision lead to a solution to the customer's problem?" and"Will this proposal or decision lead to the realization of prosperous lifestyles for thecustomer?”
19
19

Initiatives for Business Improvement and Prevention of Recurrence
Chiba Bank
Establishment of thebusiness operation system

Elimination of incentives in
the personal business

Strengthening comprehensive
proposal capabilities in the
personal business

Strengthening the internalmanagement system

Strengthening 1st linefunctions

Strengthening 2nd linefunctions

Strengthening thebusiness management
systemStrengthening group
governance

Reform of organizational
culturePenetration andthoroughness of the Purpose,
Vision, Fiduciary Duty
Strengthening 3rd linefunctions〇Discuss consistency with the
Purpose and Vision as an important
axis for decision-making

Establishment of a new business model
for collaboration of silver certificates
Chibagin Securities
Strengthening the business
management system

Establishment of thebusiness management
systemStrengthening theinternal management
systemStrengthening governance bymanagement team

Reform of organizational
structure

Strengthening confirmationof the compliance suitability
principle

Sophistication of productselection process

Review of performance award
system and personnel
evaluation system

Review of Human Resource
development system andtraining system

Strengthening 1st linefunctions

Strengthening 2nd linefunctions

Strengthening complaint
response

Strengthening checks andbalances by banks

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Efforts to disseminate the Purpose,
Vision, Fiduciary Duty Policy
within the bank

Reform of corporate culture〇Organize the Purpose, Vision, andFiduciary Duty Policy in an integrated
manner, review the Fiduciary Duty
Policy, and establish the Fiduciary
Duty Handbook〇Utilize the Fiduciary Duty Handbook todisseminate Fiduciary Duty to all
employees through study sessions
held by the President, group CRO and
CBO, and at branches.
〇Senior compliance management
training for Directors and General
Manager of branch

Strengthening 3rd linefunctions〇Display "Purpose," "Vision," and"Three Pledges" on the desktop
screens of work PCs and in internalbank notices so that officers andemployees can see them at all times.

20
20

Strengthening Group GovernanceFurther strengthen governance, promote integrated group management, and build a system to prevent recurrence
Major activities (Including plans)

Corporate governance system chart

1.The chair of the Board of Directors will
be changed to Outside Director.
(from April 2024)

General Meeting of Shareholders（Appointment /Dismissal）

Supervision

Appointment, Remuneration andCorporate Advisory Committee

5

Board of Directors（Advisory/Report）

Chair: Outside Director(Supervision)

Audit

Various committees

The President (Group CEO)・Sustainability promotion committee
・ALM Committee
・Compliance committee, etc.

Group CxO, others(within Compliance and Risk
Management Division)

Direction/
Management

BranchCopyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

4.Newly establishment of Customer
Support Monitoring Office⇒ Consolidation of customer response
functions
5.Change in the method of appointing
the presidents of group companies⇒ Designated to advise the Appointment,
Remuneration and Corporate Advisory
Committee(Report)4

Headquarters
Discussion /Group Strategy
Division

6（Administration）

Reports

Group companies, etc.

2.Newly establishment of Group
Improvement Office⇒ Direct interview with front-line staff as
top management directly andrecommendation of improvement
measures to management
3.Assignment of General Manager incharge of Corporate Management(Group CRO)
⇒ Consolidation of the Compliance andRisk Management Division, and theService Quality Management Division

・Group Supervision Committee
・Group Promotion Committee
・ Banking and Securities Strategic
Review Committee, etc.

3
Customer Support
Monitoring Office

Audit &
Supervisory
Board(Agenda/Report)

Management Committee

21Chair: Outside Director

Business execution

Group
Improvement Office

Audit

7
Audit

Audit andInspection
Division

6.Strengthening the Group management
system⇒ Cross-sectional management throughthe Group Strategy Division

7.Introduction of culture audits⇒ Gap analysis and promotion ofpenetration of "Purpose" and"Vision"21
21

Future Activities
Accelerating One-to-One Marketing and thorough sales activities focusing on individual customers’ ideas
Until now

Product-out-type sales activities

In the future"One-to-One Marketing" sales activities that meet the needs of individual customers
Scenario-based marketing

Accumulating customer action data

◼ Proposed use for those who have been using the cardfor one week after arrival of the card

◼ rediction of mortgage needs based on account trends
communication
based onexperience

Branch staff

Branch staff(Utilization of returndata)

Waiting for
consultation◼ Education loan needs forecast based on family

Database

Person in charge at the headquarters(Target analysis)

Person incharge at theheadquarters
Identifying customers with potential
needs through data analysis⇒Propose solutions for each customer

Customers managed by the
person in charge

structureFor example

e-mails, notices, Web ads, etc.
(to share responses with staff in charge)

Customers
Managed bybranchSend DMs with thesame content in bulk

◼ Since time for proposals is limited, contact customers fromyour assigned client list with priority to those staffs arelikely to approach.
◼ Priority given to communication based on own knowledge andexperience◼ Proposal of individual products (financial products, loans, etc.)◼ Wait for consultation from other customers◼ Sales support by sending DMs from headquarters (samecontent, sent in batches)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Digital customers

Non-digital customers

Strengthening datacollection byincreasing the numberof digital customers

Customers managed by the
person in charge

Digitalcustomers

Non-digital
customers①Increase the number of digital customers②Improve the accuracy of data analysis③Improve our ability to offer suggestions
to customers④Increase customer satisfaction⑤Make one's next proposal

22
22

The Mid-Term Plan

23
23

Overview of the 15 th Mid-term Plan

The 15 th Mid-term Plan Engagement Bank Group

Title– Phase 1 –(Plan Period: April 2023 ~ March 2026)

Phase 2~

Operational Guideline: Evolution of the customer-focused business model■ Practice “Sustainable Management” by providing societal value to the community

Basic Policies

I. Creating the optimal customer experience
Deliver personalized proposals utilizing a wide range of data.
Provide in-person, remote, and digital channels most-suited
to the customer.

II. Enhancing the quality of existing
business

III. Providing new value

Further increase the quality of solutions
designed to address customer issues.

Provide new-found value to customers byentering into new business areas.

Bank Group
Development■ Expansion of “Value Creation Bases”

Bases

Base I

Base IIDX

Base III

GX

Alliances

Base IV

Base V

Human Capital

Goals for FY2030

Group GovernanceConsolidated ROE

Profit attributable to owners ofparentManag-ement
KPIs

To create a local
community
better suited to bringing
each person’s hope tolife

Consolidated ROE *1

75.0 billion yen

Above 7%

Consolidated net businessincomeCopyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

120.0 billion yen

Tier 1 common equity capital ratio*２

10.5% ~ 11.5%
Consolidated OHR

8%Profit attributable toowners of parent

100 billion yen

45%*1 Shareholders’ equity basis*2 Basel III full implementation finalization basis(excluding valuation differences on securities)

24
24

The Mid-Term Profit Plan Outlook
Aiming to Achieve 75.0 billion yen while controlling upside and downside
Upside/downside from initial forecast of the Mid-term Plan

Upside from the initial forecast

Initial plan1

○ Improvement in domestic net interest income due to a rise in loan interest rates○ Increase in stock dividends＊All planned values are initially planned.

Including bond-related
gains/losses reboundof ＋20.0

Upside
２

Other
+19.8

(Billion yen)

G&A
expenses-5.4

Down
Side ２

Upside１

60.2

Net fees
andcommissions
+11.3
Net
interest
income+7.2

Net interest income2

Credit cost
○ To reduce credit cost through solution review meetings○ Reversal of reserves accumulated conservatively

Creditcosts-7.6

Upside３3Upside４○ Increase in gains on sales of stocks due to the rise in the stock market

Pensions,
Stock-related etc.
gains losses -1.9
-3.3

Down
Side １

Dif. between
consolidated Taxes
and non- -6.6
consolidated+1.3

Gains/losses related to stocks, etc.

4

Others○ Decrease in pension liabilities due to a rise in long-term interest rates

75.0
Downside from the initial forecast

Down
Side ３

1

Net fees and commissions○ Subordinated progress in earnings from sales of financial products comparedwith initial plan

Of which, sales of financial products +4.1
Corporate solutions +1.7

2

Gains/losses related to bonds○ Portfolios restructured due to high overseas interest rates and rising yen interest rates

3
FY2022(results)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

FY2025(plan)

Dif. between consolidated and non-consolidated○ Chibagin Securities: Subordinated earnings progress due to focus on post-sales follow-up

25
25

PBR Improvement Logic Tree
Approach to P/B ratio
P/B ratio=

P/E ratio

Investment inhigh RORA assets

Cost of shareholders’ equity－ profit growth rate

Strengthening fee
business

ROE

×・Expansion of customer base by increasing lending andstrengthening branch network
・Thorough cross-use and solution proposals

1

ROE
improvement

P/B
ratio

RORA
improvement

Cost control

Increasing dividend
payout ratio

Changes in the domestic
interest rate situation
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Increase in
expected profit
growth rate
Reduction incost ofstockholders'equityP27

P28

・Thorough investment contributing to the improvement ofrevenue
・Reduce OHR to about 45%
P16・Maintain a dividend payout ratio of over 35%, aiming for along-term target of 40%
P31

Controllingshareholder returns
and growthinvestment

P/E ratio
Improvement

・Implementation of digital marketing strategies
・Increasing digital customers and improving unit prices

・Strengthening credit management using stress-testing・Controlling credit cost by providing thorough support foraccompanying

Rangemanagement of
CET1 ratio

improvement

・Strengthening investment while considering portfolio balance
・Strategically invest capital, people, goods and money

Refine existing
businesses
Provide new value
Expanded
information
disclosure
Strengthen
engagement

・Additional return of over-range capital・Investment in new businesses and inorganic

P41
～43

・Steadily implementing the strategies outlined in the Medterm Plan
・Regular reviews and progress reports

P32
～40

・Preparation and disclosure of materials in accordance withinvestor requests
・Increase in the number of investor meetings and information
sessions held26
26

Improving RORA
Raising gross business profit RORA through strategies tailored to each division and asset, and bolstering net income RORA by strengthening commission transactions

Net income RORA

Gross business profit RORA and OHR by Assets and Division (F2022)※Cashless data are presented as consolidated data due to integrate Chibagin JCB cardbusiness, and others as non-consolidated data.

Other OHR of Personal BusinessCashless: 70%①Promotion of Chibagin app②Promotion of cross-use③Steady uptake of interest
rate hikes

Unsecured loans

Gross business profit RORA

Overseas
Japaneseaffiliates
Listedsubsidiaries
2.0%

2023/32020/3
3.0

LBO

SMEs/
Sole proprietors

Residential
loans

4.0

5.0

6.0

Improve RORA and
OHR①Promotion of corporate
portal use②Steady uptake of interest
rate hikes

1.3%
2020/32026/31.1%
2023/3(trillion yen)

0.9%
1.0

1.5

2.0

Risk assets(trillion yen)

Strengthening
fee business

Strengthening
fee business

Build up pipeline of corporate
solutions

Real-Estate
RentalOutside Japan
Non-Japanesecompany2026/3(trillion yen)

Risk assets
average RORA
2.07%

Large/mid-sizedcorporations

Deepening of digital marketing
Expansion of cross-use
Cross-use(Billion yen)

15.7
3.1

17.5
4.0

Product use

0.2

0.0%
70%

0.8%

0.6%

3.0%

1.0%

1.5%

Net income RORA

Improve RORA and OHR

1.0%

Net income RORA

Trust inheritance: 75%

RORA in the retail sector

RORA in the corporate sector

Improve OHR

Grow the revenue beyond the amountinvested in accordance with the retailfee business enhancement plan (page28).

Sales of financial products: 128%

4.0%

*Bubble size: gross business profit

60%

50%

40%

OHR
(consolidated)
47.37%

30%

20%

10%

0%

*Since OHR of each division does not include HQ expenses,tend to be low overall*In calculating RORA, risk-weighted assets for 3/2023 standard were converted to theBasel III finalization full implementation standard.

OHR
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

1.8

Account use

12.4

13.4

8.1
Account only
FY2019FY2022

FY2025(Plan)*Including management succession advisory services (retrospectively changed)

DigitalCustomerNon-digital
Customer

27
27

Strengthening Personal Services ①
Aim to increase the number of digital customers and increase the unit price of customers by promoting the use of products and services
Improvement process of personal fee business revenue
based on the DX Strategy
Strategy 1
Shift to digital customers
Increase customer resolution throughdata analysis*1. Account use: Customers who satisfy any of the following conditions: salary/pension receipt, balance of ¥ 300 thou. or more, and use of account transfer*2. Cross-use: Uses two or more types of products

Strategy 2
Increase in the number ofcustomers using products
Increase customer satisfaction and shift
upward to the transaction category

Cross-use*2
4%¥ 74 thou.

Change in customer composition
during the mid-term period2026/32023/92023/3

DigitalDigitalExample of display
Classification of customers
Percentage of individual customers
Gross profit per capita

1.16 mil. people

1.00 mil. people

29%

25%

Non-digital

Non-digital

3.00 mil.

Transaction category

Account use*1
49%¥ 5 thou.

57%

Digital1.80 mil. people

43%

2.87 mil. People

71%

PeopleProduct use
13%¥ 30 thou.

Non-digital
2.40 mil. People

75%+200,000 people
during the mid-term plan

Change in revenue composition
during the mid-term period2026/32023/9Account only
34%
¥ 0.3 thou.

2023/3Non-digital¥ 15.8 bil.
Non-digital
customers
71%¥6 thou.

Digitalcustomers
29%¥16 thou.

Non-digital¥ 20.3 bil.

54%

DigitalNon-digital

Digital¥ 17.6 bil.

¥ 20.0 bil.

¥ 18.9 bil.

46%

51%

49%

36%

Digital¥ 28.1 bil.

64%

Digital segment
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

+ ¥6.0 billion
during the mid-term plan

28
28

Strengthening Personal Services ②
The person in charge will proactively approach the "customers to increase through interviews" and "customers to increase digitally" to improve the gross profit

Future direction of business for individuals

How one would like to be

Branch staff
A case of a large branchin Chiba prefecture
Residential
loan :A
Investment
Trust :D・・

A's current situation

1.Customers who canbe interviewed

・Having about 700 customers in charge
・Some customers have contact points, and many do not know each other.
・Proposed only for sales of financial products・Wants to increase the number of customers to whom proposal is made,but is too busy to make contact with them

Action 1

MissionIncrease the number ofcustomers able to beinterviewed
200 customers

How to manage
customers in charge

Customers
who can beinterviewed

Activities for consulting customers(contactable and product use)
Increase customer satisfaction→ Expand transactions through cross-use
Exploring needs
deeply by theinterview

Increase customer
resolution by using digitaltools

One to One
marketingA wide range of proposals
that go beyond asset
management

Activate transactions with customers having few
contacts (broaden their horizons)Getting customers to "use Chibagin" through digital

Digitalcustomers

Non-digital
customers

700 customers in charge

Further enhancement of app functions

Increased transactions
increase per-customer
revenue

Action 2
Customers who cannot meetwith us activate digitally
125 or more

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Productsuse

2.Customers whoseneeds are identified
Account
through datause
analysis
Active proposal activities incooperation
Account
with headquarters
only
Digitalcustomers

Non-digital
customers

How can we raise customer satisfaction?
System in which each and every person in charge can think independently
Identifying the needs of “1. Customers who can be interviewed"
and making a wide range of proposals
Product use ⇒ Cross-use
Ask 2.Customers whose needs are identified through data analysis
to use products
Account only / Account use ⇒ Product use

As a result, gross profit per customer rises.

Awareness-raising activities at workplace seminars,etc.
App set when opening an account and concluding a
housing loan contract

Cross-use

Residential
loan :A
Investment
Trust :D

Voluntary management improves
employee motivation andengagement

Approach from headquarters29
29

Branch and Corporate Channel Strategy
Establish a system that allows customers to consult with us anytime through our strong branch network and digital channels
Domestic branch network

Corporate portal(Excluding branch-in-branch, sub branch, loan centers, online branch etc.)

Continue to open
new branches
outside Chiba
Prefecture

Highly-convenient digital contact points

IbarakiPrefecture

SaitamaPrefecture

4 branches

3 branches

Digital<New branches>
11/2023～
Mito Branch
12/2023～
Hamamatsu-cho Branch

Tokyo
Metropolitan
Government

Chiba
Prefecture15
branches127

New

branches

Osaka
Prefecture

Indispensable basic infrastructure
for business activity
37% ofbank branches
in Chiba
Prefecture

387
71

182

134

Chibagin
Business Portal

Business information■ Strengthen customer connections

Borrowers＋ Non-borrowers■ Accumulate transaction data (including other banks)

37%

342

Chiba Bank
prefectural share

Major Banks*1

165

Other regionalbanks in Chiba
Pref.*2
Chiba Bank

9/2023Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

*1. Mitsubishi UFJ, Sumitomo Mitsui, Mizuho, Resona*2. Keiyo and Chiba Kogyo

70.0%
52.9%

[Total]50

127

Portal penetration rate*1
58.2%

41.9%
27.1%
8.4%

(thousand)
17.4

4/2019

Digital services

Number of portal registrations/penetration rate

Total number of branches
in Chiba Prefecture
35%

Basic financial and communication functions

As of 9/30/2023

1 branch

Digital channel that serves as a hub for eachservice that connects business operators and banks

26.3

34.8

40.4

Number ofcorporate portal
registrations*2

9/20233/20265.0

9/2021

3/20229/2022

3/2023※1 Number of borrowers registered in the portal ÷ Number of borrowers※2 Enter the number of corporate portal logins excluding those with no log in history.

30
30

Capital Policy
Decided to buy buck 10.0 billion yen of its own shares while controlling the CET1 ratio* from 10.5% to 11.5%.
Consolidated capital adequacy ratio / riskweighted assets【As compared toMarch 31, 2023】* Preliminary figures

12.79%

12.11%

12.12%
12.28%
11.51%

11.94%

11.63%
11.54%

11.58%
11.51%(Billion yen)

7,705.5
1,039.1

8,098.7

956.6

Capital management viewpoint

8,455.9

8,698.6

1,112.9

1,159.6

9,107.3

Capitaladequacy ratio-0.05%
CET1 ratio-0.02%

1,194.2

Risk-weighted
assetsbefore floor
adjustments

6,666.3

7,142.0

7,342.9

7,538.9

7,913.0

3/20203/2021

3/2022

3/20239/2023Net
income2023/9

Capital adequacy ratio

11.63

11.58

15.3

CET1 ratio

11.54

11.51

15.2

Excluding unrealized
gains/losses on
securities

10.57

10.58

14.0

12.8
12.5
11.5

*Rough calculation of 9/2023 results on a Basel III finalization basis.
In principle, the starting application date is one year past the displayed date.

10.5%

54.0
47.9

Consolidated
Dividend ratio

50.3

48.6

51.7

22.9

22.0

24.5

28.1

32.6

33.9

November 9, 2023
Announced share buyback

totaling 10.0 billion yen

29.9

35.5

Dividend ratio: over 35%
Long-term goal: 40%

◼

(Yen)

2H
Dividend

Capitalaccumulatio
n

41.7

29.9

10

11

13

Appropriate
level*CET1 ratio on a Basel III finalization basis
excluding unrealized gains/losses on
securities

Term-end

Consolidated
shareholder
return ratio

1H
Dividend

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Targetrange

Shareholder
returnShareholder return policy

Finalization Finalization
First year* completed*2023/311.5%

3/2023 results(%)

Additional
shareholder return,etc.

accumulation

Growthinvestments

51.2

(%)

Inorganic
investment Asset

Around11.6%

Total riskweighted assets
+4.6％
Floor
adjustments

Target CET1 ratio*

15

15

◼

7.5

7.5

8

7.5

7.5

8

8

9

11

13

'17/3

'18/3

'19/3

'20/3

'21/3

'22/3

'23/3

15

6 consecutive
years of dividend
increases
Double in 6 years(dividend per sharetotal)

24/3（estimate)31
31Retail Strategy ① (Financial Products)
Shift to activities that pursue the best interests of customers by abolishing profit targets
Sales activities after elimination of profit targets
Increased work efficiency and longer interviews
with customers
App
investment
trust

Chibagin
Money Guide

Robo AD’s
Proposal support

Four major measures
Okane no Basket

Improvement measures 1:
Introduction of four major measures◼ After-sales support

Assessment ofactivity

ChibaginacademyImprovement measures 2:
Review of sales evaluation method

Improvement measures 3:
Improvement of knowledge of staff

Improvement of efficiency
Increased number of interviews

Sales
performance

Proposal
improvement

Number ofeffective
interviews

6/2023～◼ Achieving advanced
consulting proposals throughthe use of new investment
trust proposal tools

Okane noBasketPaperlessContract
success rate

Unit sales
price

Avoiding a decline in sales performance by improving the number of effective
interviews, closing ratio, and sales price per unit

Digitalcustomers

5/2023～◼ Improvement of convenience by making all
applications and back office work paperless

Amount of work reduction

6 hours/month

Customer's commitment amount per time
Before introduction¥3 million

Increased time for consulting
proposals

After introduction¥5 million

Chibagin Money Guide

4/2023～◼ Creating points of contact with customers who do notcome to the branch

App investment trust

4/2023～

Changes in the opening of investment trust accounts(Number of cases)

31%
10%

Other effects of this measure

Non-digital
customers

Complete paperless

Per representative

Improve customer resolution⇒ Increased opportunities for proposals

Customers
managed bybranchesNew・Increase in the number of digital customers due to theintroduction of digital channels(Application investment trust, Chigin Money Guide)・Increased opportunities for proposals due to improving digital
customer resolution
・Promoting stock businesses by improving customer satisfaction
・Securing cross-use proposal opportunities by increasing theinterview time・Improvement of employee engagement

4,859

Number of PV of asset management-related
homepages(1st half of FY2023)
YoY change

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

About 2.4 times

Non-face-to-faceapplication rate

12%

4,458

Faceto-face

2,089

Non-face-toface(App/Web)

4,902

550

675

FY2022
1H

FY20222H

FY20231H

32
32

Retail strategy ② (Financial Products, Trust and Inheritance)
Lifetime support through suggestions tailored to the customer's life stage
Trust and inheritance-related business

Fees and commissions from financial products（Billion yen）

52%
42%

44%

7.7

8.1

0.6

0.7

7.1

2.0

0.6
1.4

2.6

1.3

1.5

2.4

1.4

1.1
2.0

1.5

1.4

1.7

FY2019FY2020

FY2021

49%

57%
48%

6.3
Other 0.1

0.3
1.2
1.9
0.8
1.7

FY2022

3.1

3.2

0.2
0.6
0.9
0.4
0.8

0.1
0.8
0.8
0.3
0.9

FY2022
1H

FY2023
1H【Year-on-year】
Recurring
revenue rate
+8%
〔Total〕 +0.0
Fin. instrument
intermediary-0.0
Level-premium
insurance+0.2
Annuities, wholelife insurance-0.0
Investment trusts（sale）-0.0
Investment trusts(trust fees)+0.0

Fee income

328.7
263.7

168.1
132.3
37.2
94.1
FY201936.5
124.0
FY2020【Year-on-year】〔Total〕-10.9％

300.6
22.0

116.3
37.9
124.4
FY2021

206.8
6.0
48.3
66.2
86.1
FY2022

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

112.2
5.0
29.6
29.7

99.9

47.8

0.2
17.3
50.5
31.7

FY2022
1H

FY2023
1H

Fund wrap-95.4％
Chibagin
Securities-41.5％
Personalannuities+70.0％
Investment
trusts-33.6％(Billion yen)(Billion yen)

1.10

1.45

1.48

0.29

0.37

3.34

0.73
1.15

0.82

3/21

3/22

0.17

1.11

3/23

0.81
0.19

0.55

0.62

9/22

9/23

Partners

3/21

3/21

3/22

3/23

9/23

Two-family homes

Nursing homes

Travel products

Funeral/headstones

Expand transactions
utilizing held assets

751.4

9/23

3.36

Use of Chibagin Market

Dig
deep

3/23

3.19

Renovations

Investment
products
Insurance
Sale of realestate

3/22

Partners

Expand business matching

Total assets uncovered throughinheritance operations

519.0

0.80

Chiba Bank

Lateraldevelopment

613.8

0.73

4.17

Develop non-financial services

Gain the trust of our customers andunderstand other financial assets

705.1

2.39

2.77

Chiba Bank

Expand trust /inheritance operations
Develop new products/
improve existing products

0.57

0.45

*Excluding management succession advisory operations (updated retroactively)(Billion yen)

3.92
2.85

0.28

Financial product sales (Group total)(Billion yen)

Future income from held testaments

Strengthen
collaboration
On Ad
Hoken No
Madoguchi

33
33

Retail Strategy ③ (Residential Loans)
Optimize proposals at each stage: Review ➡ Loan execution ➡ Repayment

Residential loan balance

Expansion of cross-use of housing loans at entrance(Billion yen)

3,548.6

3,632.3

3,736.1

3,834.3

Proportion of incidental transactions

Number of mortgage holders

3,917.7 3,970.8(Thousand cases)

Credit debit

200

3,431.1

204

202

82%

196

3,281.7

94%

86%

192

3,140.5

93%

93%

93%

205

ChibaginApp77%

3,016.3

52%
3/15

3/16

3/17

3/18

3/19

3/20

3/21

3/22

3/23

9/23

'3/19

'3/20

Residential loan execution total

328.1
80.9

78.1

349.2

352.4

85.3

90.4

347.3
91.9

249.9

261.9

255.3

Chiba Pref.

41.3

3/20

3/21

3/22

3/23

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

3/22

3/23

9/23

Substitute amount and thesubstitute rate

0.18％

0.43％
184.9

0.31％

(billion yen)

15.4

12.1

59.4

0.03％

(billion yen)

4.4

122.5

125.5

3/23

3/24

2.3 1.8 2.0 2.0
'3/12

3/19

3/21

'9/23

0.60％

1H

163.8
263.8

'3/23

Delinquent loan balance anddelinquency rate

Other

276.0

'3/22

Residential loans delinquency/guarantor rate

(Billion yen)

357.0

'3/21

'3/15

'3/18

'3/21 '3/23'9/23

'3/12

'3/15

'3/18

'3/21

0.7

'3/23'9/23

34
34

Retail strategy ④ (Unsecured Loans)
Maintain asset health while increasing balances
Unsecured loan balance(billion yen)

157.8

170.4

142.2
126.3
107.8

77.0
39.9
37.0
'3/14

89.5

51.3

56.5

60.0

61.7

177.0

59.2

Card loan channel breakdown
183.6
60.7

194.0

64.2

201.6

66.7

49.3
'3/15

62.8
'3/16

'3/17

'3/18

Teller

0.5%

0.6%

App
24.3%

40.2
85.6

97.7

'3/19

108.7

117.8

122.9

129.8

134.9

Multipurpose

'3/20

'3/21

'3/22

'3/23

36.3
32.2
2.8
1.4

3.5
1.6
12

39.1
3.7
1.9

40.6
1.9
1.8

38.0
2.0
2.2

11.4
11.2

13

¥7.07 bil.

16.3

19

25.3

22.4

IB

ATM

3.7%

59.6%

71.4%

3.1%

'9/23

Overdue loan balance/delinquency rate

'3/20

'3/21

'3/22

Card loans(Chibagin Securities)

Multipurpose loans(Chibagin Securities)
1.12％

2.15％

13.7

1.81％

23.9

18.5
1.0
1.1
5
11.4

'3/19

36.8%

IB

20.6
1.0
1.1
5

Other

School

0.2 0.2

0.2

13.3

'3/23

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

'9/22

'9/23

1.49％

0.33％
0.33％ 0.4

Reno.

0.2 0.1

Car(billion yen)

'3/18

App

¥7.78 bil.

ATM

42.0
2.0
2.3

11.5

20.3

FY2023 2Q

FY2022 2Q

Multipurpose loan execution total(billion yen)

Since its launch in March 2023,
the number of applications hasreached approximately 40%of the total number ofapplications.

TellerCard loan

45.0

74.9

In-app loan
"One Loan"'3/12(billion yen)

'3/15

'3/18

'3/21 '3/23'9/23 '3/12

'3/15

'3/18

'3/21 '3/23'9/23

35
35

CashlessExpanding transactions with local governments and large chain stores to further strengthen the cashless baseMeasures to expand the number of franchise locations

Profit from new cashless operations
0.93
0.59

(Billion yen)

0.68

0.42
0.09
0.04
0.04
FY20200.003
0.003
FY2019

0.55

0.43

0.17

0.24

FY2021

FY2022*Expenses incurred before the launch of TSUBASA Visa Debit operations
are recorded in the month of the start of operations.

0.32
0.11
FY2022
1H

0.38
0.16
FY2023
1H【Year-on-year】〔Total〕+26.6％
TSUBASA Visa
Debit
(10/2020~)+20.0%
Franchiselocations(10/2019~)+45.5％

Number of franchise locations and transaction volume(Billion yen)(Thou. locations)

2.9
Mar.

2.01

1.52

0.62

0.15

5.1

6.4

7.9

Sep.

Mar.

Sep.

2020

2021

7.67

4.75

3.45

8.56

10.7

11.9

13.3

Mar.

Sep.

Mar.

2022

14.5

Transaction
volume*Number oflocations

Sep.
2023

Number of TSUBASA Visa Debit cardholders
and transaction amount(Billion yen)
0.39
(Thou.)
88
Mar.

0.78

1.41

1.80

2.39

146

210

266

322

Sep.

Mar.

Sep.

Mar.

※Amount of transaction: Monthly settlement amount in the
2021
2022
applicable month

2.62

369

Transaction
volume*Number ofcardholders

Local
governments

large-scalecustomer

Chiba Prefecture: Support for cashless installation ofprefectural-run facilities

New〇More than 200 stores in multiple brands〇Payment procedures at prefectural museums andart galleries, etc.

〇The estimated transaction amount is
30 billion yen or more.

〇Fee payment procedures at Driver's License Center andPolice Station (Planned to commence in December)
Support for introduction to municipalities in and outside of
the prefectures〇Certificate issuance fees, etc.

〇23 local governments and 267 locations(as of the end of September)

To start dealing with national retail chains

Healthcare-related
businesses〇Development of services tailored to thespecific operations of medical institutions

Strengthening the structure by reorganizing group operations
Before 9/2023

10/2023

4/2024Chiba Bank

Chiba Bank

Chiba Bank

Chibagin
JCB Card
Chibagin
DC Card

Remaining card guarantee
operations and transferring JCB
card-related operations

Change ofcompany name

Chibagin
JCB Card
Chibagin
Card

MergerChibagin
Card

Sep.
2023

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved. *Transaction volume: monthly settlement amount for the relevant month36
36Corporate Strategy ① (Corporate Solutions)
Revenue from corporate solutions reached a record high for the 12th consecutive year
Corporate solutions-related revenue

Bank-arranged project finance / PFI*Initiatives after April 2020

*No breakdown for ”Other” (0.01 billion yen for FY2023 1H)

Projectfinance

15.70

PFI

1.52
13.21

(Billion yen)

10.08

9.14

1.18

1.10
0.02
0.19
0.09

0.19
0.29
0.20

11.84

1.33

1.20

0.49
0.60
0.31

0.31
0.25
0.22

0.53
0.73
0.40
【Year-on-year】〔Total〕+0.36

7.22
12.14
9.33

7.09

Gunma
Shinmaki megasolar

Business
matching
+0.08

5.77
0.54
0.18
0.29
0.07

9.98

7.55

0.70
0.24
0.33
0.18

5.54

7.59
0.78
0.23
0.10
0.21

6.06

0.61

0.63

0.43

0.43

0.34

0.25

0.21

0.16

FY2018FY2109FY2020

FY2021

FY2022

FY2021

FY2022

FY2023

1H

M&A
-0.22

Syndicatedloans, etc.
+0.52

New

Bulk Solar insouthwest Ibaraki

1H

Selection of sea area foroffshore wind power
generation(Only locations in Chiba Pref.
where chosen within Kanto
area)

Choshi
Kodaira City school lunch project
Tachikawa City school lunch project
Hiratsuka-shi school lunch project

Privateplacement
bonds
-0.04

*Including management succession advisory operations(updated retroactively)）

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Aichi Tahara
Biomass energy
generation

Management
succession
+0.02

4.39

1H

Advisory-0.00

Tomatohbiomass energy
generation

Ichihara Yawata
Wharf biomassenergy generation

New
Ichihara City school lunch project

Designated as
promotion area
(10 areas
nationwide)

Izumi/
Kujukuri
Designated as apromising area
(9 areas
nationwide)

37
37

Corporate Strategy ② （Advisory / M&A）
Aiming to be a "management assistant" that continues to meet the needs of customers and can be consulted on all kinds of issues
Number of contracts/
fee income（cases)Corporate advisory

227

100%

239
114

0.02

129

0.52

47
0.19

0.31

8%
3%

1H

137
5

0.49

0.24

6%
1%

0.24

（billion yen)

FY2018 FY2019 FY2020 FY2021 FY2022

11%

80%

FY2022 FY2023

Number of Projects(as of the end of September 2023)

1H

11%

14%

6%
11%

19%

26%

6%

2%
6%

11%

12%

19%
40%

17%

3%

7%

22%

10%

Under
consideration

260
cases

Yearlymeetings

520
cases

Incl. 60 ICT
consultations

12%

20%

M&A promotion

In action

M
30
cases

600
cases
Start (July 2009)

15%

18%

2023/32023/9

0%

40
cases

2022/3

1,200
cases

Revenue(M&A only)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Management
systemLabor

Mid-term/management
strategy

98

95
0.73

0.25

FY2018 FY2019 FY2020 FY2021 FY2022

Contractual coverage

2/2022Business consulting services advisory

6/2022

Support for formulation of med-term plan

12/2022

Organizational structure development
and digital diagnostics

4/2023

Organize company-wide business issues andformulate systemization concepts

4/2023

POS data analysis support (contracted withgroup companies)

Medical/nursing
13%

90
Manufacturing
18%

0.60
0.29

Year andmonth

M&A by industry

1H

148

60

0.19
（billion yen)

Current (September 30, 2023)

After evaluating this case, we will conclude a contract to resolve various
issues (Improving customer satisfaction leads to repeat business).

Tourism
strategy
Subsidysupport214

Projects(M&A/businesssuccession)

103
Stock
proposal

Reliable dialogue for resolving management issues leads to highcustomer satisfaction through a spiral of new discoveries andidentification of issues

Organizational
restructure

M&A/businesssuccession

ClosedInitial issue (October 2021)

Digitalization

11%

36%
19%

Incl. 210 ICT
consultations

Company A (real estate development company)

Other

11%

26%

1H

2021/3

A

7%

17%

60%

Complete&

Example of repeat applications
for advisory

Contract breakdown

0.33

0.10

Construction/
real estate
27%

Services42%

M&A by sale

￥1.0
bil. and
over
￥0.5~
14%
1.0 bil.
Under
17%￥0.3 bil.
52%￥0.3~0.5 bil.
17%

FY2022 FY2023

1H

1H

Data at the end of March 2023

38
38

Corporate Strategy ③ （Overseas Operations）
Use of the largest overseas network among Japanese regional banks
Non-Japan credit

Overseas network

By region
Trainee sent to Yokohama
Bank Shanghai Branch

London Branch

3/2019Trainee fromMusashino

Latin America/
Middle East

New York Branch

2%

Shanghai Representative Office
Bangkok Representative Office
Trainee fromMusashino

Ocenia4%

Hong Kong BranchTrainee from
Yokohama

Singapore Representative Office

Date

Alliance

Country

9/2023

Yokohama

Singapore9/2023

Yokohama

Canada21
13(Cases)3

525

Related overseas office
Chiba Hong Kong Branch, Yokohama Singapore
BranchChiba NY Branch, Bank of Yokohama Market
Department

28

31

35

37
Chiba/
Yokohama
Chiba/
Musashino

15

Guaranteed byinternationalorganizations andexport credit
agencies 5%8

USD$5,828 million

9/2023Ocenia4%

Latin
America/
Middle East
1%

Asia
10%

North America
44%

By credit rating
Unrated(majority
profile)
11%
BBB
26%

BBB－
3％

Unrated(majority
profile)10%

ECA, other1%
AA and above
31%

A
31%

ECA, other1%

AA and above
39%

BBB
24%

BBB－
3％

Guaranteed byinternationalorganizations andexport credit
agencies 3%

North America
55%

Europe27%

Europe31%

Total co-financing with partner banks (overseas operations)
FY2022 2H
major
initiatives

USD$4,803 million

Asia
14%

* Trainee program was partiallyhalted due to COVID-19*Includes credit to non-Japanese companies indomestic branches and market divisions

A
27%

TSUBASA*S&P/Moody’s lower rating
1H
2H
FY20181H
2H
FY20191H
2H
FY2020

1H
2H
FY2021

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

1H
2H
FY2022

1H
FY202339
39

Corporate Strategy ④ （Real Estate Loans）
Real estate rental loans increased steadily while credit risk remained low
Real estate rental loan balance
2,034.7

2,180.9 2,250.2

2,369.5

2,453.3 2,515.3

2,629.9 2683.0

Default rate**Default: rank-down to “potential bankrupt” or below (case number
basis)

2.68%

1,805.1(Billion yen)
1,635.9
1,496.4

2.16%

0.66%

Nonrealestaterental0.04%

Overall

3/10 3/11 3/12 3/13 3/14 3/15 3/16 3/17 3/18 3/19 3/20 3/21 3/22 3/23 9/23

Realestaterental

0.99%
3/14

3/15

3/23

3/17

3/18

3/19

3/20

By borrower type

3/21

3/22

3/23

9/23

By use〔9/2023 / case number basis〕
Landlord,
etc.
33%

Small
22%
Officeworker15%

Residential
90%

Commercial
10%Real estate rental businessbalance/ratio of modified loans

6.3％Manager30%

Occupancy Average for Bank-financed properties: 95.5%(Residential 95.9% Commercial 94.3%)
rate*National average: 83.3%

DSCR

0.72%

0.26％
0.25％

99.4
1.4％

(Cash flow before payment of principal and interestof the property ÷ Amount of principal and interest payment)

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

If less than 100%, rental
income cannot cover
repayments and expenses.

0.37％

0.28%
0.17％

0.15％0.17％
Overall
0.23%
0.20％
0.19%
0.09%
0.16%
0.14%
0.00%
9.0
Commercial(Billion yen)
5.5(Billion yen)

Average for Bank-financed properties:148％

DSCR: Single property balanceReal estate rental business
Balance/ratio of overdue loans

6.0

4.6

41.7

5.5

4.6

5.0

OverallCommercial

3/15

3/17

3/19

3/21

3/23 9/23

0.8

0.6

0.8

0.6

3/18

3/19

3/20

3/21

1.3
0.0
3/22

3/23

0.5
9/23

40
40

New Business ① Advertising
Providing services at every stage, from brand recognition to purchase of products and services by consumers
Brand awareness and response media

Advertising media business▼ Digital signage in front of
Chiba Station

recognitionBranstrategyInterested
and concerned
Comparingand examining
Purch
-ase

Digitalsignage(in front of
Chiba Station)(Within theBank)▼lobby signage▼ATM corner signage
Adverti
sing

Smart
phone
(Chigin app)Top
displayLeadgenerate-onstrategy

Advertising

Advertising

OperationscreenWebadvertising(Listing)▼Chibagin app_recommendation▼ATM top display

E-mail addelivery▼ e-mail

Advertising

Advertising
AdvertisingDestination media

Consumer situations

Advertising consulting services
Type of media
Digital Signage in front of Chiba
StationCustomerMarketing support incollaboration with

Support for business issues
Financing consultation
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Onionnews Inc.
(20% owned by the Bank)

Advertising planning,production and operation
support

Number of sites

Number of Ad
spaces

One place

12 spaces

Branch lobby signage

152 branches

270 spaces

ATM signage

93 branches

270 spaces

ATM top display

12 branches

84 spaces(number of registrants)
840,000

3 spaces

Total advertising spaces

639 spaces

App

41
41

New Business ②
New businesses launched in the previous mid-term plan enter the next stage of growth

Remote financial consulting Service: On Ad

Regional trading company: Chibagin Market
STEP1 regional production

Revenue image

EC siteLaunch of corporate service
contracts

Neutrality“Trigger regional revitalization” within Chiba
Crowdfunding

On Ad

IncomeContributing to financial wellness byproviding employees with financial
information

Branding
Income summary

New

Newly establishment of
an investment learning-type plan

Expenditure

STEP2 Life Events
Establishment of new business model that stands upstreamof commercial distribution
Uncover hidden
needs through datautilization/personali
zation

2nd
year

3rd
year

4th
year

5th
year

Expect to be profitable in
FY2023 (3rd year) as originallyplannedCompletedonlineProviding Knowledge and Know-How on
operation through a complete Ordermade
Curriculum

Specialized
adviceChibagn Market

High-level solutions via real estate funds
Chibagin Leasing

House purchaseconsulting service

Realtors

1styear

Overview ① ~CRE strategy~
Property purchase(Liquidation/lease-back)Chibagn Market

Support consumption activity of new lifestyles and “Connect to life”

Developed/effectively used by business partners

Health/nursing

Education

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Supportlarge-scale
investment

Stabilize
real estate
ownership

Overview ② ~Development support~
Provide support[Major Areas]

Compressinterestbearing debt

Sale priceReal estate held by borrowers

STEP 3 Living

Raise growth
capitalSecure/supplement funding capacity

Food retailers

4242New Businesses ③ AML/Metavases/Energy/BaaS
Enhance non-financial services and diversify profits by entering new business fields
TSUBASA-AML Center Co., Ltd.
TSUBASA banks
Bank A

Metaverse

TSUBASA-AML Center Co., Ltd.

New・Increasing the sophistication and efficiency ofoperations through the consolidation of know-how
・Effects of reducing system and personnel costs

STEP1.
Events in the Metaverse SpaceSTEP2. New
New home showroom experience will be offered by
Metaverse

Bank BAML system

Database

Final
decision✓ Separate management ofdata for each bankAI

Primary
verification

Notified
services• Rating model• Monitoring scenario• List maintenance(1) Operation aggregation

Accumulated know-how
through operations

Energy business(2) Planning operations

BaaS business

Wholly-owned subsidiary
Himawari Green Energy Co., Ltd. established
TSUBASA-AML Center Co., Ltd.
(Chiba, Daishi Hokuetsu, Chugoku and NRI
participated)■Power generation
management
Operation/management of
power plants

Collaboration■Sale of energy
Sell and generate energy in-house

TSUBASA Alliance, Co., Ltd.
(TSUBASA alliance 10 banks participated)
AML Center

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

■Others
Consulting service
Environmental value referral

Provide financial
and other functions

Chibagin
Group

Business operators
Energyretailers

Regionalcustomers

Loans

Business
operator
customers

Cashless
Platform

43
43

Value Creation Bases

44
44

DX Strategy ① Overview

Evolution of our customer-focused business model

Creating the optimal
customer experience
Retail Customer Needs

Evolution of the customer-focusedbusiness model

Regional Ecosystem Strategy

Personalization Strategy

Creation of Non-financial
Operations

Evolution of Financial
Operations
App
Corporate
portalPlatform

PaperlessSeal-less

Develop digital
infrastructure toconnect to customers

Develop infrastructure formore efficient banking
operations

Corporate Customer Needs

Regional
suppliers
BaaS
New
technology

Support operations
through platforms and newtechnology

ChibagnMarketDigital support for needs

AD
Advertising

Digital support for sales

Digital marketing to improve strategic outcomes
Accelerate strategy through human resources development

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

45
45

DX Strategy ② Chibagin App
Developing an app that can solve any problem
Opening investment trust accounts(from April 2023)

Number of app registrations/penetration rate

50.0%

31.9%
Application

App penetration rate*(Thousand people)(thousand cases)

6.5
5.5

25.5%

32.9%

1st half of
FY2023transfer fees

17.8%

1.99
848

738

3/2022

1.76

Appregistrations

514

3/2021+ 6.8%(million cases)

305

FY2023
1H

Transfer to App
usage rate fortransfers to other
banks
21.7%

10.6%

Investment
trust accountFY2022
1H

29.6%

Retail: # of money transfers/transfers to otherbanks through the Bank app

3/20239/2023*Number of Chibagin app registrations ÷
number of individual active customers

Opening savings NISA accounts(from April 2023)

3/2026(Plan)For more convenience

FY2022
1H

Transfers toother banks

Year-on-yearchangeFY2023
1H

Tax and public funds collection

8/202335.3%
App usage rate

Addition of passbook mode function

Number of barcodes
and QR codes paid by apps
Doubling in 1 year

〇Enhancement of the function to inquire details〇Memo and search functions〇PDF output function

5.4(thousand cases)
3.4

9/2023

Starting Web account opening service〇Correspondence to online

Savings NISA
account

identification procedures〇Application can be completed

147(thousand cases)
73

with a smartphone

Barcodes and QR
codes collected via
app〇Application can be used

FY2022
1H

FY2023
1H

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

immediately after account opening

FY2022
1H

FY2023
1H

46
46

DX Strategy ③ Corporate Portal
Portal site that is functional and easy-to-use for all customers

・Portal site that is functional and easy-to-use for all customers
・Implement functions that allow for administrative streamlining as an online branch(corporate transaction concierge)

1

Try the portal
Complete transactions through theportal without needing to visit a branch

２Deliver bank services

Understand services
Obtain the information you need,when you need it

Provide solutions

Concierge

Deposits

Information delivery

Complete transaction management
onlineAccount balance/transaction statements

Transaction trends(graph)Compareaccount info

Display accounts ofother banks

Chibagin manual
Information dispatch

Group solutions showcase

Financing
Borrowing reference

Repayment schedule

Account borrowing/
repayment receipt

Digitalization of
documents

FOREX

Seminar information

CO2 emissions measurement

New services
Improve collaboration with ext. services

Proper solutions for your company’s
issuesIn-person transactions
Advanced operations

Online financing

Solid line: actual results

In-person transactions

Introduce to all customers
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Digital contact points

Dotted line: future goal

Utilize contact points
MarketingNumber of portal
registrations/ penetration rate
Portal penetration rate*

Improve operational productivity
Transaction channels suitable for customers

1

58.2%
(Thousand)
52.9%
41.9%
27.1%
8.4%

・Improve existing customer
relationships
・Strengthen consulting capability

・Maintain/increase transactions with
Personalized
net depositors and small accounts
recommendations
・Acquire new customer segments

Notifications, etc.
Balance certificate
issuance

Consult/apply

Virtual transactions

Smooth collaboration with Web-EB

Notification item change

３

Aim to be a familiarbank online and inperson

5.0

17.4

26.3

34.8

70.0%

40.4

9/2021 3/2022 9/2022 3/2023 9/2023*1 Number of corporate portal registrations ÷
number of individual active customers

function addition

3/2026(plan)New◼ Overdraft Acceptance, Execution,
and Repayment（9/2023～）
Application can be made without submitting
vouchers or requiring an interview◼ C-checker（9/2023～）
Visualization of CO2 emissions
from customers' business activities
47
47

Alliance Strategy ① TSUBASA Alliance
Expansion of cooperation in a wide range of fields, starting with system cooperation
Cooperation in the system

Sales collaboration and administrative cooperation

Improved development capabilities and cost reduction effects◼ Sales cooperation using a wide-area information
network◼ Core systems: 4 banks introduced(Toho Bank will introduce the system in January next year, and it will be
expanded to 5 banks)

To strengthen business matching, LBO, and real estate nonrecourse loans

Reduction of development costs, mutual use of backup locations◼ Cooperation with regional trading companies◼ App: 7 banks introduced

Support for the establishment of regional trading companies by Gunma Bank
Joint store openings in Marche(new introduction by Hokuyo Bank in September)◼ Other:Cooperation at the time of introduction of the following

Number of customers
who chose the banks as main bank
Source: TEIKOKU DATABANK, Ltd.
"National Survey of Main Banks, 2022"

systemSystem overview

Corresponding banks(excluding Chiba Bank)

Responding to the My
Number new law

Daishi Hokuetsu, Chugoku,
Toho, North PacificResponse to invoice system

Chugoku, North Pacific

Transfer control system

Daishi Hokuetsu

Broadcast for Zengin moretime Computer

Daishi Hokuetsu, Chugoku,
North Pacific

TSUBASA general paperlesssystemDaishi Hokuetsu, Chugoku

Loan management system

Daishi Hokuetsu, North Pacific61◼ API Cooperation: development of services that take advantageof the customer base

“T&I” Number of individual user IDs
on the API platform

2.55(Million)

2.91

T&I
total

1.08

0.08

'3/20

0.42

0.65

0.85

'3/21

'3/22

'3/23

みずほ

MizuhoActivities of the joint venture company
Company name

1.71
0.40

(thousand companies)

0.95
'9/23

Chiba
Bank

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Investor

Description of business

68

りそなHD

76

三井住友

Resona Sumitomo
Mitsui BK
HD

140

95

三菱UFJ

MUFG
BK

TSUBASATSUBASA
Alliance

SDGs and human resource development◼ Clear folder collection and recycling campaign

TSUBASA
Alliance Co., Ltd.

All 10 banks in thealliance

Providing advice, making proposals,
and accepting commissions foradministrative work in order toimprove operational efficiency

T&I innovation
Center Co., Ltd.

6 banks in the alliance
IBM Japan

Fintec's research, planning anddevelopment of services

Strengthen mutual understanding and cooperation of the alliance(Chiba Bank accepted eight participants)

On Ad Co., Ltd.

3 banks in the alliance
Nomura Securities

Specialization of financial advisory(For details, page 41)

TSUBASA-AML
Center Co., Ltd.

3 banks in the alliance
NRI

Improvement of sophistication andefficiency of AML operations(For details, page 43)◼ TSUBASA cross-mentor system(second time as in the previous year)

All TSUBASA alliance banks participate◼ TSUBASA trainee system

Each bank’s director serves as a mentor to other banks' female executives.

48
48

Alliance Strategy ② Chiba-Musashino Alliance / Chiba-Yokohama Partnership
Leveraging collaboration in the Tokyo metropolitan area, we will further increase our presence in the sales area and accumulate results
Chiba-Musashino Alliance

Chiba-Yokohama Partnership
Development of know-how between top
regional banks

A new form of regional banking◼ Accelerate communalization of each area
◼ Expand presence in the Tokyo Metropolitan area

New regional bank collaboration
model that does not involve
management integration

Effective amount

Phase 1

Phase 2

(Initial to 3/2021)(4/2021～3/2026)

Plan achieved
1.5 years aheadof schedule

Collaboration between top regionalbanks with Tokyo as the base ofoperations

Effective amount
Cumulative total¥31.5 bil.

Cumulative total¥15.0 bil.

Five-year plan
cumulative total¥26.8 billion¥20.0 bil.

Cumulative total¥14.3 billion

As of the endof March 2024

16.6 billion yen¥ 9.6 bil.
¥ 7.9 bil.

¥8.4 billion¥ 4.6 bil.
¥1.5 billion
3/20203/2021

3/2022

3/20239/20233/2026

Collaboration among
the three banks

The Hamamatsu-cho Corporate Banking Office, a joint base, into a branch(December)②

Expanding the scope of managerial-level personnel exchange starting in
2021 (personnel, diversity, and digital) New
Personnel Exchange in the Head Office(Personnel in charge of corporate banking
New )9/2023◼ Joint hosting of seminars,
etc.
•
•

Start-up seminar
Migration and two-stronghold
residence seminar
SDGs seminars, etc.

3/2024

Linked finance*
Cumulative origination amountand number of cases

144
90

170

(cases)

54
57.4

44.4

3/2022

3/2023

58

44
373.0

53.5

•

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

3/2022*Syndicated loans, LBO financing, etc.

(cases)◼ Collaboration at the Hamamatsu-cho Branch:①

3/2020

Mutual customer referrals
Cumulative amount executedand number of referrals

Major Initiatives◼ Expansion of mutual human resource exchanges:

3/2021(billion yen)

310.0

9/20233/2022395.6(billion yen)

3/20239/2023

Steadily accumulating cooperative results, mainly in Tokyo

49
49

Alliance Strategy ③ Cross-industry Collaboration
Increase the ability of the organization to deliver value through diverse cross-industry alliances
Sony Bank

Onionnews
Deepen, develop
expansion

Chigin Group

Expected synergy
Onionnews

Mutual provision of digital technology, products, and services
New

Introduction of telepresence system “Mado"
at Mito Branch (opened in November) andHamamatsu-cho Branch (opened in
December)■Mutual provision of products and services that make up each bank’s
strengths
Foreign currency
services

Asset management, trusts,
inheritanceFirst project, IINUMAHONKE

Sony Bank

Chiba Bank (Chibagin Market)

Crowdfunding

Chibagin Market
of market→ Introduced to Sony Bank ・Expansion
・Test marketing

・Nationwide PR of thecompany and products
・Funding

regional company• Collaborate on advertising business• Collaborate on data analysis, digital marketing• Promote development of DX personnel

Financial
product sales• Strengthen virtual channel sales through content
marketing on asset management portal sites, etc.

Chibagincomputer service

Regional
revitalization• Share web design know-how• Shared use of development resources• Outsource non-banking tourism-related business• Collaborate on/mutually introduce
local government projects

ChibaginMarket• Collaborate on crowd-funding

ChibaginResearch• Collaborate on consulting for local governments• Utilize the company’s knowledge shared at seminars

Regional
revitalization
business

Collaboration agreement on
crowdfunding

Cashless operations

Digitalstrategy

Advertising/digit
al marketingbusiness■Utilize new digital technologies* Bank operations in black letters, Group companies in white letters

Examples of cooperation in regional revitalization projects
Joint-research on the use of technology■Joint-research regarding use of the blockchain■Joint-research on the DX of housing loans■Joint-research on the development of a sustainable society
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Hotel mikazuki content development
Onionnews: Event planning and operation
Chiba Bank: Crowd Funding Support
Verification of effects and advisory services*In addition to the above two companies, several tourism businesses
and other companies collaborated .

50
50

Human Capital ① Human Resources Strategy
Build an organization that creates new social value based on the "two human resources strategies"
To create a local community better suited to bringing each person’s hope to life

Purpose
Vision

An Engagement Bank Group that works closely with the community

Human Resource Development Policy: Become someone who keeps fighting for the customer
Based on our human resources development policy, we will actively invest in human resources
development to enhance the capabilities of each and every employee of the Group, leading to thesustainable growth of the local community and the Group.

Mission in thehuman
resources
sectionThe mid-term
plan
human
resource
strategy✓ Develop human resources approach people and work with sincerity as professionals✓ Develop human resources who can think and act autonomously with empathy for the Purpose✓ Respect each employee’s hope and create a comfortable workplace① Career development➢

First half of
FY2023major
Initiatives

Creation of an “Organization with high personnel
engagement”

Development of a “Chiba Bank Group
where people grow”➢➢➢

Training specialist
Pprsonnel (Trainee,etc.)
Chibagin Academy
Permeation of humanresource development
policyReview of careerdevelopment sheets

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

➢
➢
➢
➢

➁ job satisfaction③ Diverse organization

Engagement survey
Salary increase for all
employees
Start-up salary increase(April 2024～）
Creation of "Relay ofThanks"➢➢➢To consider revisions to
the personnel system(Professional Course)
Reviewing theevaluation system
Promoting women in
the workplace④ Unified Groupmanagement➢➢

Group personnel
exchange
Unified group recruiting⑤ Human resources
portfolio➢➢➢

To strengthen career
recruitment
Reskilling
Optimal staffing basedon generation andreallocation plans

51
51

Human Capital ② Individual Measures
Enhance "job satisfaction" of employees and create an organization that contributes to the local community as a unified group
Group personnel exchange and unified group recruiting

Creating an open workplace environment
Conducting the engagement survey

New◼ Background of the survey
・Until now, anonymous morale surveys have measured employee "job satisfaction"
New design for analysis and countermeasures combined with other HR Information◼ Issues of survey results and future policy
・The overall score is generally good, but there are areas where improvement is requiredfor individual items
・ Prioritize work on areas that need improvement

Other initiatives◼ Internal hotline system
・As a result of our efforts to raise awareness and promote usage, the number ofconsultations is on the rise・Contribute to early detection of inappropriate clerical work and harassment◼ Chibagin, Chotto line
・Mechanisms for easy consultation of daily concerns using in-house chat functions, etc.
・Average of 10 to 15 consultations per month・From September, the scope was expanded to include group companies.

◼ Questionnaire (signed or unsigned)
・Used to analyze trends in compliance awareness and reflect staff's opinions in various
measures◼ To enhance communication and mutual understanding among employees
・360-degree evaluation
・ Conduct regular 1 on 1 meeting with supervisors
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

◼ Issues of group human resource management
・Most of the staff were replaced or substituted in fixed positions at each company
・In principle, each company recruiting its own staff, and there was little awareness forgroup-wide personnel exchange.

◼ Future measures

・The Bank's human resources staff will interview all Group company employees to gain
an understanding of the personnel situation at each company, individual career
aspirations, etc., and to ensure that the right person is in the right position at the righttime throughout the Group.
・Start group-wide recruitment and personnel exchange.

Unified group recruiting for new graduate

Hiring of new graduates in the future

Hiring of new graduates
Assignment

Recruitment
Chiba Bank

Chiba Bank

Group company A

Group company A

Group company B

Group company B

Each company recruits individually

New

Recruitment

211
114

Transfer
Chiba Bank

Chiba
Bank

Chiba
Bank

Group company A
Group company B

Bank hires in batches and after acquiring banking knowledge,
assignments are made including group companies (except forsome specialized courses)

Trends in the number of group personnel exchanges(People)Assignment

234

281
109

Managers

86

Leaders

118

42

62

55

54

3/2023

10/202386
3/2026(plan)

Staff
52
52

Human Capital③ Index
Increasing the investment amount and the number of employees trained (investment targets)
Corporate sales and retail sales development program

Personnel development
Previous Mitd-term Plan results・Developing consulting proposal specialists through training at headquarters and group companies
・Emphasis on practical programs, with the first half positioned as input period and the second half
positioned as output period

Current Mid-term Plan

(4/2020～3/2023)(4/2023～3/2026)

148

280

nearlyPrevious term
(Input period)

peopleDoubling

peopleHeadquarters: Corporate sales,
examination and management succession
Group companies: Leasing, CCS andResearch instituteCorporatecourse1H of FY2023

Mid-Term Plan(cumulative total)

Corporate sales

10 people

50 people

Retail sales

10 people

50 people

DX personnel

10 people

60 people

External trainees dispatch

13 people

90 people

Management personnel

4 people

30 people

Total

47 people

280 people

173

300

219

242
First half

138

Retail course

Common to all
courses

External training (Negotiation skills implementation seminar,
corporate counsel training seminar, etc.)

Equivalent towage hike rate

1.4%

Traning costs/
qualification
incentives, etc.

Training costs/
Incentive for
qualification, etc.

System expenses

Change from
3/2022＋¥170 million
peremployee(yen)

44,0003/202257,0003/20233/20243/2026(Plan)

65,00074,000112,000

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Head Office: Same ason left

Launched in April 2023, and released more than
5,000 titles under 1,338 titles.
※Plan to expand the content in the future

At any time, anywhere, or many times

Traning institute3/2021
Investment

Assignment tobranch offices

Chibagin Academy
414

Full-year (Estimated)

Aftercompletion

Head Office: Same ason left

Headquarters: Trust inheritance, loan, andfinancial instruments
Group companies: Securities and AssetManagement

Human capital investment(Million yen)

Latter term
(Output period)

Learning Time Results(hours)※ Calculated on average total study hours per person per year

40.0
16.0
FY2022

Unify learning tools

21.9

FY2023
1H

FY2025(Plan)

Individualized training programs

53
53

Achieving Sustainable Management

54
54

Towards Realizing Sustainable Management
Achieve both social value and economic value through our long-term aims

Sustainable management =“long-term aims” + “ economic value ＋ social value (solving social issues) "Chiba Bank Group declaration on SDGs

Regional
economy andcommunity

Aging
population

Contribute to therevitalization of theregional economy andlocal communities

Support safe andsecure lives for theelderly

Financialservices

Diversity

Environmental
conservation

Provide financial
services for better life

Promote diversity andwork style reforms

Contribute to theconservation of asustainable environment

External evaluation
Regional banks

CDP score for climate change

Chiba
Received "A-" rating,the highest level for a
Japanese bank

A-

MUFG
SMFG
Resona HD

B◆ Global average :「B-」Major banks, etc.

Concordia FG

Mizuho FG

Fukuoka FG

SMTH

Shizuoka FG

CMebuki FG

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Chibagin Securities

Platinum
Kurumin
Plus
Certification

PlatinumEruboshiacquisition

First Bank
The inclusion of The Chiba Bank, Ltd. in the MSCI Index or the use of the MSCI logo, trademark,service mark, or index name does not mean that MSCI or its affiliates sponsor, recommend, oradvertise The Chiba Bank, Ltd. The MSCI Index is the exclusive property of MSCI. The names andlogos of MSCI and the MSCI Index are trademarks or service marks of MSCI or its affiliates.

New

55
55

GX Initiatives ①
Contribute to the sustainable development of the entire Chiba prefecture through regional decarbonization
Chibagin Group Carbon Neutrality
Activities of Chibagin Group

Solution

Collaboration with local
governments◼

Expand use of
ZEB/energy-saving
renewable energy
branches

Become carbon neutral by March, 2031
※SCOPE1+SCOPE2 emissions of the Bank◼

companies registered as
Chiba SDGs Partners◼

◼

Introduction of
hybrid vehicles

Target
1.2 trillion yen
1.1 trillion yen
0.9 trillion yen

Installation of solar
power generators

Target
0.6 trillion yen
0.5 trillion yen
0.4 trillion yen

Support for areas

Promotion of Chiba SDGs
Utilization of network

3/20239/2023C-checker

Support for customers’ decarbonization✓

Support for SDGs Management◼ Incorporate ESG issues into businessevaluations◼ Business succession consulting

Carbon-neutrality consulting

Corporate ◼ Greenhouse gas emission measurement
Customers
support◼ Solar power generator installation
supportOf these,
Environment-related
finance
Target1 trillion yen

advancing decarbonization

LED

Installation of
LED lights

Increase number ofTarget2 trillion yen

SustainablefinanceComprehensive SDGs
partnership agreements

Utilization of
Himawari Green
Energy(amount achieved
from April, 2019)

Cumulative amount of sustainable finance executed✓

2050
Sustainable developmentof Chiba prefecture
Entire prefecture
becomes carbon neutral

3/20263/2031

New

Visualization of CO2 emissions from
customers' business activities
Free of charge for Chibagin BusinessPortal subscribers

3/20239/20233/20263/2031

Number of sustainablefinance initiatives(Cases)

3,725

4,019

Total

15
87

Internation
al principles
compliant

2
6
3,717

3,917

2,269
2,033

9

6
30

116

1,997

2,144

2023/32024/3◼ Sustainable housing support discount◼ Discount SDGs loans
RetailCustomers

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

2022/32023/3

1H

SDGs
Leaders
Loans

SDGs
Friends
Loan

1H

56
56

GX Initiatives ②
Responding to climate change (initiatives related to the TCFD recommendations)
CO2 emission※Subject to SCOPE1+SCOPE2 associated with own emissions

SCOPE1・SCOPE2

Acquisition of third-party
certification
From FY2021

22,748(tons-CO2)
Total

19,016

18,783

2,425

2,493

SCOP1

Scenario analysis of climate change risks

2,766
12,316

SCOP2

2,408
16,591

16,290FY2019FY2020Physicalrisks

FY2030CO2 emissions
net zeroTo 2050

FY2021

FY2022

Damage to the Bank's real estate collateraldue to typhoons, torrential rains, and otherwind and flood disasters, and businessstagnation of the Bank's loan customers

Increased credit costs (Domestic)¥6 ～7 bil.

9,908

FY2025(Target)Sea level rise

7/2023 disclosure New

7/2022 disclosure(Achieve carbon neutrality*)

6,000

15,663CO2 emissions (absolute value)

FY2013

New

18,429Approx. 46%
reduction comparedto FY2013

Large-scale storm and flood
disasters, etc.

the deterioration of business performance of financing
customers, calculated based on the damage to the
Bank’s real estate collateral as a result of typhoon,
torrential rain and other storm and flood damage andthe percentage of the Bank’s building sitesubmerged

Increase in credit costs (Domestic)¥7 ～ 8 bil. ※1

Transition to a decarbonized society

FY2030(Target)SCOPE3(t-CO2/million yen)

Category 15 total *(investments and loans)

Expansion of the measurement scope anddisclosure for Category 15
New(investments and loans)Amountreleased

Carbon strength(t-CO2)-

12,622,906

Of which beverages and foods

3.78

499,479

Of which, metals and mining

10.26

1,776,486

Of which, chemicals

4.90

450,184

Of which oil & gas

7.50

76,030Of which, construction materials
and capital goods

5.12

555,363✓

Expansion of the measurement scope
Bottom-up approach

Bottom-up + top-down
approach✓

Percentage of loan
amount to be measured *4.44

45,657

Of which, electriicity

29.08

678,320

Of which real estate
management and development

0.68

462,983

Expansion of disclosure categories

Of which, land transport

3.83

550,927

Of which, marine transport

16.77

267,452(In addition to categories 6, 7, and 15,
1, 2, 3, 4, 5, and 13 are newly disclosed.)

Of which air transport

12.14

27,555

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

7/2023 disclosure[Target sectors]
Coal, oil, gas, electricity, and steel[Target sectors]
Addition of chemical sector

Increase in credit costs

Increase in credit cost

Maximum of ¥27 bil.

Maximum o¥30 bil. *2

Consider adding airport-related sectors in
the future
Ratio of carbon-related assets to *3

To 2050

86.9%

total loans and other assets of the Bank
7/2022 disclosure

Disclosure of breakdown
by industry

Of which, automobiles

Transi-tion
risks[Target sectors]
EnergyNewNew

7/2022 disclosure(Excluding water supply and renewableenergy generation projects)

1.2%

7/2023 disclosure

New[Target sectors]
Transportation, materials and buildings,
Agriculture, food and forestry
products sector added

36.4%*1 Calculated based on IPCC RCP4.5 and RCP8.5 scenarios (4°C scenario).
*2 Calculated based on IEA's NZE scenario and NGFS's Net Zero 2050 and Below 2°C scenarios.

* The scope of measurement was expanded, and estimated values wereused for loans to borrowers whose emissions were not measured or notdisclosed. Percentage of loans to general business corporations, public
sector, and sole proprietors that are subject to measurement*3. Total of loans, acceptances and guarantees, foreign exchange, private placements, etc. as of March 31, 2023. 1.4% of loans as ofMarch 31, 2023 were to sectors
subject to the 2022/7 disclosure.

57
57

Diversity / Governance / Regional Revitalization
As the organization continues to diversify, the staff will work together to tackle local issues
Indicators related to diversity
FY2021
Percentage of leadership
positions held by women*(No. of persons)
Percentage of supervisory
and managerial positions
held by women(No. of persons)
Percentage of employees
taking paid leave
Percentage of men taking
child-care leave

FY2022

Ratio of cross-shareholdings to consolidated net assets
Target in
2026 JulyFY2023

25.5%

27.2%

28.4%

(492)

(523)

(551)

16.8%

17.9%

18.8%

(112)

(120)

(126)

-

72%

77.1%

42.4%

80%

102.9%

112.3%

30%*Cross-shareholdings are shown on a non-consolidated basis

25.63%

ongoing

254.6

244.0

Recruitment of mid-career employees(people)

110

82
15
FY2021

Recruitment
consultancy
service(Plan)

30
FY2022

Sales
13

Corporate
solutions18

Other
professional
29

FY2023*Includes temporary employees, dispatched employees, andemployees on secondment.

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

DX
14
Market8

19.90%

211.1

114.1

113.2

110.5

95.9

82.1

3/20193/20203/2021

3/2022

3/2023

Ratio of crossshareholdings
to consolidated
net assets(Market value)-2.05%
Market value-21.3 billion yen
Book value-13.7 billion yen

Regional development

Recruitment
channelBreakdown ofrecruited career

Career hiring trends

21.95%

232.5

203.1

*Staff with subordinates and staff in equivalent positions, such as branch manager, who areresponsible for organizational management as responsible for operations.
* The percentage of women in each category is the figure as of July 1 of each year, and thepercentage of women taking paid holidays for the FY2023 is the half-year result.

24.45%(Billion yen)

100%

-

21.86%【As compared toMarch 31, 2022】

Advertising
placement
Scouts from job
information
websites
ReferralDirect applicationfrom websites

Regional revitalization project
Tourism business support

New〇In addition to the Narita Night Time Economy Creation Project (rightimage), support is also provided for the efforts of local governments
and companies in the prefecture.
〇In addition to the Chiba Bank, the Chibagin Market and the Chibagin
Research Institute are working together to promote the project.

Chiba City Monorail vitalization project

New〇Crowdfunding supported along railway lines and seven projects achieved their target monetary value.

58
58

Appendix

59

59
59

Chiba Prefecture Market Share / Personal Deposits
Establishing an overwhelming operating base in Chiba Prefecture
Loan and deposit balances in Chiba prefecture / share
Source: Finance Journal

Deposits

Trends in personal deposits balance(Billion yen)
10,043.7

27.9%
24.3%

23.0%

50.9

3/2007Loans

3/2017
40.1%

36.6%

5.1

3/20226.5

3/20239/2023

Personal deposits compared with other banks
Chiba
Bank
share

Individual deposit ratio

Rate of increase (compared to 3/2022)
3.6%
67.7%

2.4%

46.4%

1.2%

7.6
Chiba
Bank
Chiba

3/20073/2021

72.3%

Total bankdeposits in
Chiba Pref.

5.6

3/202041.0%
18.6(Trillion yen)

6,154.2

6,094.8

5,873.6

Of which, depositsbalance int payroll
and pension account3/2022

16.3

14.5

5,596.2

5,168.9

Chiba
Bank

3/2012

Total personal
deposits

14.2

10.9

9.2

39.1%

13.9

9,305.2

Total bankdeposits in
Chiba Pref.

(Trillion yen)

8.0

Chiba
Bank
share

42.7

37.9

34.9

25.6%

11,076.0

10,918.3

10,535.3

3/20123/2017

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

3/2022Chiba
Bank

3 megabanks
average
Mega 3 line average

Regionalbanks, 2nd-tieraverage
Averag e o f regio nal and second-tier region al banks

Chiba

Chiba
Bank

3 megabanks
average
Mega 3 line average※Source: Simple average calculated from Nikkin Report (March 2023)

Regionalbanks, 2nd-tieraverage
Averag e o f regio nal and second-tier region al banks

60
60About Chiba Prefecture
The economic environment in Chiba Prefecture is good.

Population

6.28 million
No.6
nationwide

Gross

Prefectural
IncomePrimary
industry

prefectural
products

18.7 trillion yen
No.6
nationwide

No.5
nationwide

0.1 trillion yen

GDPSecondary
No.9
industry nationwide

5.3 trillion yen

Tertiary
No.7
industry nationwide

15.2 trillion yen

20.7 trillion yen
No.7
nationwide

Size of the Chiba Prefecture economy(compared to major world countries)
Total assets of Chiba Bank (compared to the largest bank)(USD Bil.)

252.7

246.0

229.0

212.2

195.9

188.9

Sources: Ministry of Internal Affairs and Communications Statistics Bureau, "Population Census" (FY2020);
Cabinet Office, Economic and Social Research Institute, "Prefectural Accounts" (FY2020)

Chile

Population and number of households in Chiba Prefecture

141

157

181
555

201

217

232

605
579 592

251
621

260

276

280

283

286

622

628

627

627

627 (10,000 households)
Population

514
473

(10,000 people)

1980 1985 1990 1995 2000 2005 2010 2015 2020 2021 2022 2023

Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Number ofhouseholds*As of Oct. 1 of each year

Sources: Statistics Bureau, Ministry of Internal Affairs andCommunications, "National Census" (~2020)
Chiba Prefecture "Chiba Prefecture Monthly Permanent Resident
Population Survey Monthly Report" (2021~)

Czech
Republic

PortugalNew
Chiba
ChibaPref.
Pref. Greece
Zealand

Total assets of largest bank in each country/region
148.2
90.0

109.0

104.7

86.6

80.3

Caixa Geral de
Bank New National
Bank of
CSOB Czech CSOBANZ Bank
Czech ANZCaixa
Banco
de
Depositos
Zealand
GreeceRepublic e
Geral de New ZealandRepublic
Credito
Depositos
Inversiones

Chiba Bank

Chiba
Bank

OPT Bank
Eurobank
Holdings

Sources:<GDP> Cabinet “Annual Accounts of the Japanese Economy for FY2021 (Flows) Point (released on December, 2022)" andOECD "Annual National Accounts Database (as of March 2023)".
< Total assets of the largest domestic banks >The Bankers (2023 edition), Calculated based on the exchange rate on the date of financial
results from each company's disclosed data.

61
61

(Ref.) Earnings Results / Stock Price(Billion yen)

(Yen)

1400

70

1200

60
Line graph:Bank's stock price (left axis)

1000

50

800

40

600

400

FY2006
Record highnet income
Stock price:¥1,206(Feb. 23,
2007)

30

FY2014
Record highnet income
Stock price:¥1,037(Apr. 22, 2015)

200

FY2022
Record highnet income
Stock price:¥1,037(March 9, 2023)

20

10

Bar graph:consolidated net income (right axis)
0
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2021 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

0
62
62

Inquiries related to this presentation should be addressed to:

The Chiba Bank, Ltd.
Corporate Planning Division
Investor Relations
Tel: 043-301-8459
Fax: 043-242-9121
E-Mail: ir@chibabank.co.jp
This material was prepared only for the purpose of providing information and does not solicit
the purchase or sale of any specific securities.
All or part of the matters described in this material may be revised or changed without priornotice. This materials contains forward-looking statements. These statements are notrepresented as providing a guarantee of the Bank’s future performance, and actual results may
be subject to risks and uncertainties. Please note that future performance may differ due tochange in business environment, etc.