The Chiba Bank website[IR Library]

Financial Resultsfor FY2022 ended March 2023

May 23, 2023

Table of Contents
Summary of Financial Results
Summary of Financial Results
Summary of Financial Results (Consolidated)
Net Interest Income
Average Balance / Yield of Loans and Bills Discounted
Balance of Loans / Deposits at Year-end
Loans
Securities
Impact of Rising Interest Rates① - Foreign Currency Impact of Rising Interest Rates② - Yen Net Fees and Commissions
General & Administrative Expenses
Credit-related Expenses / FRA Claims
Stress Testing Based on Changes in the External Environment

Earnings Forecast

Basic Policy Overview
3
4
5
6
7
8
9
10
11
12
13
14
15
16

New Mid-term Plan
Looking back at the previous Mid-term Plan
Defining our Purpose and Vision
Overview of the 15th Mid-term Plan
Improving our P/B Ratio
Growth Strategy
Equity Costs / Profit Growth Improvement Measures
Earnings Targets ①~③
Capital Policy

18
19
20
21
22
23
24-26
27

29
Basic Policy I: Creating the Ideal Customer Experience
30
Digital Marketing Strategy
Basic Policy II:
31-34
Fortify Existing Business (Retail ①~④)35
Fortify Existing Business (Cashless Operations)
36-41
Fortify Existing Business (Corporate ①~⑥)
42-43
Basic Policy III: Creating New Value ①~②

Value Creation Bases
Base I: DX Strategy ①~③
Base III: Alliance
Collaborating with Other Industries
Base IV: Human Capital ①~②

Achieving Sustainable Management
53
54
55
57
58

Towards Realizing Sustainable Management
History of Initiatives / External Evaluation
GX Initiatives ①~②(Value Creation Base II)[] Diversity / Regional Revitalization
Group Governance (Value Creation Base V)

Appendix
About Chiba Prefecture
Chiba Prefecture Market Share / Comparison with Other World Banks(Ref.) Earnings Results / Stock Price
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

45-47
48
49
50-51

1

60
61
62
1
1

Summary of Financial Results222

Summary of Financial Results
Non-consolidated(Billion yen)

FY2021

FY2022

ChangeFY2023Plan

Gross business profit

161.5

155.5

-5.9

170.3

Net interest income

131.8

140.3

8.5

133.5

Net fees and commissions

27.5

28.6

1.0

31.3

Trading account income

1.1

1.3

0.2

2.2

Net other ordinary income

1.0

-14.8

-15.8

3.2

-1.4

-20.0

-18.5

1.5

G&A expenses (-)

84.5

82.5

-2.0

84.8

Business profit (before provisions to general reserves)

76.9

73.0

-3.9

85.5

78.3

93.0

14.6

83.9

Excl. gains/losses on the cancelationof investment trusts

75.1

85.3

10.1

81.6

Net provisions to general allowance for loan losses (-)

1.5

-

-1.5

-0.2

Net business income

75.4

73.0

-2.4

85.7

Non-recurring gains/losses

-1.7

8.7

10.5

-2.7

Disposal of non-performing loans (-)

5.6

0.3

-5.2

7.2

Reversal of allowance for loan losses

-

0.9

0.9

-

Gains/losses related to stocks, etc.

2.7

8.3

5.6

5.0

Bond-related gains/losses

Core business income

Ordinary profit

73.6

81.7

8.1

83.0

Extraordinary profit/loss

-0.3

-0.3

-0.0

-0.2

Net income

52.3

58.1

5.7

59.0

Credit-related expenses (-)

7.1

0.3

-6.7

7.0

Consolidated(Billion yen)

FY2021

FY2022

Change◆ Net interest income increased by 8.5 billion yen compared to the previous year as the
Bank’s domestic operations remained strong, while net fees and commissions increased by
1.0 billion yen year-on-year. As a result, gross business profit decreased by only 5.9 billion
yen compared to the previous year despite a significant 18.5 billion yen decrease in bondrelated gains mainly due to the Bank’s rebalancing of its securities portfolio◆ Core business income increased by 14.6 billion yen compared the previous year, thehighest full-year result in the 14 years since FY2008, as the Bank’s core business
operations remained strong◆ Credit-related expenses were significantly restrained and decreased by 6.7 billion yen
compared to the previous year, while ordinary profit reached the highest result in the 7 years
since FY2015 as a result of 8.3 billion yen in gains related to stocks, etc.
◆ Net income reached record high results on both a non-consolidated and consolidated basisof 58.1 billion yen and 60.2 billion yen, respectively, as the Bank achieved its Mid-term Plan
target of “profit attributable to owners of parent of 60.0 billion yen”

Breakdown of Profit Attributable to Owners of Parent(difference between consolidated and non-consolidated results)
Net fees andcommissions
Net interest income +1.0
+8.5(Billion yen)

Credit-related
expenses+6.7

54.4
G&A expenses+2.0

FY2023
Plan

Ordinary profit

78.8

86.9

8.1

88.0

Profit attributable to owners of parent

54.4

60.2

5.7

61.0

87.0

81.8

-5.1

96.3

Other
+2.9

60.2

Dif. between
consolidated andnon-consolidated-0.0

Trading account /other business
transactions-15.6(Ref.)
Consolidated net business income(before provisions to general reserves)

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

FY2021

FY20223

3
3

Summary of Financial Results (Consolidated)
Consolidated(Billion yen)

FY2021

FY2022

Subsidiaries

Change

171.9

164.1

-7.7

Net interest income

128.0

136.5

8.4

Net fees and commissions

38.6

40.4

1.7

Trading account income

4.1

1.9

-2.1

Net other ordinary income

0.9

-14.8

-15.8

91.1

88.9

-2.1

Net revenue

G&A expenses (-)

7.8

0.0

-7.8

Net provisions to general allowance for loan losses (-)

1.6

-

-1.6

Disposal of non-performing loans (-)

6.1

0.0

-6.1

Gains/losses related to stocks, etc.

2.7

9.0

6.2

Gains/losses on equity-method investments

0.3

0.3

-0.0

Credit-related expenses (-)

Other

2.7

2.4

-0.3

Ordinary profit

78.8

86.9

8.1

Extraordinary profit/loss

-0.4

-0.3

0.1

Pre-tax net income

78.3

86.6

8.2

Total income taxes (-)

23.8

26.3

2.5

Net income
Profit attributable to non-controlling interests

Profit attributable to owners of parent

54.4

60.2

5.7

-

-

-

54.4

60.2

5.7

(Ref.)
Consolidated net business income(before provisions to general reserves)

87.0

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

81.8

-5.1

[Consolidated subsidiaries]
Company name*Showing profit/loss after reclassification forconsolidated financial statements
Investment
Profit items
ratio
FY2021(including(after deduction of interindirect)
subsidiary dividends)

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

(Billion yen)
FY2022
ChangeOrdinary profit

1.0

0.0

-1.0

Net income

0.7

0.0

- 0.6

Ordinary profit

1.1

1.0

- 0.1

Net income

0.7

0.6

-0.0

Ordinary profit

5.1

6.2

1.1

Net income

3.3

4.1

0.7

Ordinary profit

1.0

1.2

0.1

Net income

0.6

0.8

0.1

Ordinary profit

0.7

0.7

0.0

Net income

0.4

0.5

0.0

Ordinary profit

9.0

9.3

0.2

Net income

6.0

6.2

0.1

Net income
according to equity
method

0.3

0.3

-0.0

Dividends toparent company (-)

4.2

4.4

0.1

Dif. between consolidated
and non-consolidated*

2.1

2.1

-0.0

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

444Net interest income

FY2021

FY2022(Billion yen)

ChangeFY2023(plan)Breakdown of change in net interest income
Change

131.8

140.3

8.5

133.5

-6.8

123.6

131.5

7.8

128.5

-2.9

Interest on loans and deposits

98.5

100.2

1.7

103.7

3.4

Loans and bills discounted

99.0

100.5

1.4

1,040.0

34.0

Deposits incl. NCDs (-)

0.5

0.2

-0.2

2.0

0.0

Interest and dividends on securities

22.0

28.7

6.6

21.4

-7.2

Bonds

2.5

4.4

1.8

31.0

-13.0

Stock dividends

9.7

11.3

1.6

106.0

-7.0

Investment funds

0.6

1.0

0.4

7.0

-3.0

Investment trusts

9.1

11.8

2.6

69.0

-48.0

Gains on cancellations

2.7

5.8

3.0

1.7

-4.1

Other (market operations, etc.)

3.0

2.5

-0.5

3.3

8.0

8.1

8.8

0.7

4.9

-3.9

Loans and bills discounted

4.3

13.5

9.2

176.0

40.0

Foreign securities

12.4

19.1

6.7

201.0

9.0

Foreign securities

8.9

14.8

5.8

174.0

25.0

Foreign currency funds

2.8

2.1

-0.6

16.0

-5.0

Investment trusts

0.6

2.2

1.5

11.0

-11.0

Gains on cancelations

0.4

1.7

1.3

0.6

-1.1

Other (funding, market operations, etc.)

-8.6

-23.8

-15.2

-328.0

-89.0

128.6

132.6

4.0

131.1

-1.5

3.2

7.6

4.4

2.3

-5.3

Net interest income
Domestic

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.

(Billion yen)Domestic
Gains on cancelations(excl. gains onof investment trusts
cancellations ofDomestic(domestic/overseas)
investment
trusts)(excl. gains on
+4.4
140.3
+1.1
Overseas
cancellations of(excl. gains on
investment trusts)
cancelllations of+4.7
investment trusts)
133.5
-2.7
OverseasGainsoncancelations(excl. gains on
131.8
of investment trusts
cancelllations of(domestic/overseas)
investment trusts)
-5.3
-0.6

FY2023/3(results)

FY2021(results)

FY2023(plan)

Factors behind change in domestic interest on loans(year-on-year)(Billion yen)

5.5

5.1

4.4

4.3

4.2

Volume factors

+1.3

3.8
+3.4

+1.4

+1.2

-0.2
-0.3
Total

-1.3
-3.8

Yield factors
-5.7

-5.8

FY2018FY2019FY2020-3.0-2.8

FY2021

FY2022
5

FY2023(plan)

5
5

Average Balance / Yield of Loans and Bills Discounted
Domestic Operations
Average balance / yield of loans and bills discounted

Overseas Operations
Average balance / yield of loans and bills discounted* ① ”Yield on loans and bills discounted” and ②” Yield on deposits” (which includes NCDs) arerounded down to the second decimal place. “Difference between average yield on loans anddeposits” is the difference between ① and ②.

【Year-on-year】

1.01%
0.95%

0.92%

1.01%
0.95%

0.89%

0.92%

0.89%

3.20%

Average yield on
loans and bills
discounted-0.02%

0.87％

2.87%

2.73%

Difference
between average
yield on loans
and deposits*-0.02%

0.87%

Average yield on
loans and bills
discounted＋2.13%

1.32%

1.06%

Difference
between average
yield on loans
and deposits*+0.09%

422.7

Average balanceof loans and bills
discounted
+4.0％

1.06%

0.98%

1.06%

【Year-on-year】

1.00%

0.97%

(Billion yen)

Sign of reversal in loan yields(Billion yen)

0.876%

11,529.1
11,048.2
10,584.51Q0.870%

2Q

0.871%

3Q

4Q*Quarterly change

10,049.3
9,503.7

FY20180.869%

492.9

478.2

Average balanceof loans and bills
discounted+4.3％

FY2019FY2020

FY2021

FY2022418.1

FY2018FY2019FY2020406.2

FY2021

FY2022

Excluding Ministry of Finance loans
Avg. balance-

9,891.9

10,391.5

10,844.0

11,276.1

Yield

-

0.97%

0.94%

0.91%

0.89%

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

66Balance of Loans / Deposits at Year-end
Balance of loans at year-end(Billion yen)

10,136.8
232.9
216.5
167.6

10,616.5
240.3
409.8
178.6

11,206.4
243.7
409.7
184.2

11,691.3
265.4
470.9
189.9

12,153.6
316.9
423.1
199.6

3,917.7
3,834.3
3,736.1
3,548.6

3,632.3

Balance of domestic loans at year-end (by region)【As compared toMarch 31, 2022】〔Total〕+3.9％
Overseas
operations+19.4％
Public bonds-10.1％
Other consumer
loans
+5.0％
Residential
loans
+2.1％

【As compared toMarch 31, 2022】〔Total〕+3.5％
Retail branches
outside Chiba
Pref.
+6.6％

(Billion yen)

10,962.6
10,376.2
9,903.9
1,458.1
1,482.8

1,711.5

11,425.9
1,818.0

11,836.7
1,938.2

1,588.4
1,615.6

1,957.1

2,045.9

562.8

581.0

590.6

1,786.0

523.4

536.9

6,439.6

6,635.1

6,902.2

7,069.7

7,261.8

3/20193/20203/2021

3/2022

3/2023Specialbranches*+4.5％
Chiba Pref.
(regional
revitalization areas)+1.6％

Chiba Pref.
(growth areas)+2.7％*Tokyo Head Office, Shinjuku
Branch, and Osaka Branch

Balance of deposits at year-end(Billion yen)

5,179.3
4,586.0

5,426.3

5,753.7

4,839.0

SMEs+6.0％
12,333.4
370.5
732.6
2,315.2

1,385.0

1,316.3

1,453.1

3/20193/20203/2021

1,504.2

1,542.4

3/2022

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

Large/mid-sizedcorporations+2.5％

12,788.9
289.3
783.8

14,104.5
282.0
956.3
2,822.3

14,787.6
266.5
982.0
3,003.7

15,424.4
332.7
1,117.7
3,055.5【As compared toMarch 31, 2022】〔Total〕+4.3％

Overseas
operations, JOM
accounts+24.8％
Public sector+13.8％

2,410.3

Corporate+1.7％

8,914.8

9,305.2

3/20193/202010,043.7

10,535.3

10,918.3

3/2021

3/2022

3/2023Retail
+3.6％

7

7
7

LoansBorrowers of interest-free and no-guarantee fee loans show no signs of worsening credit
Proportion of loans by industry (as of 9/2022)

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

Real estate,leasing

51,57850,73449,332(Borrowers)

Chiba千葉Bank

47,866
46,93198％ areSMEs, etc.

46,18145,161

3/17

3/18

3/19

3/20

3/21

3/22

3/23

Guarantee association loan balance

Finance,insurance* Non-consolidated (Source: Nikkin)

Other

27.9%
7.4%

Rentals 22.0％

Regional banks'
average
(62)

17.5%

3 mega banks'
average

19.5%

0%

10%

4.2%

53.6%

6.9%

8.3%

9.4%

9.3%

20%

4.5%

60.3%

16.7%

30%

40%

11.2%

50%

43.3%

60%

70%

80%

90%

100%

Balance of COVID-19- related financing

Post-Covid(Billion yen)

Wholesale,
ManufacturingretailInterest-free and no-guarantee fee loans

605.6
584.4

552.8
526.7

512.7

Balance as of 3/2023: 182.6 billion yen
Modified 3%

Pre-start

488.0

0.64%

41%
449.0

Start ofrepayment

415.5
383.9

370.1

Criteria
modification

Proxy rate

*Balance-based proportion* Percentage of total proxy payment
amount to total amount of financing

Post-start
59%

3/14

3/15

3/16

3/17

3/18

3/19

3/20

3/21

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

3/22

3/23

*Balance-based proportion

88

Securities
Balance*1 / Average remaining maturity*2 of securities*1 Excluding unrealized gains/losses*2 After hedging via asset swaps【As compared toMarch 31, 2022】

5.2

5.1

(Years)
4.2

4.1

3.5
2.7

2.3

2.0

1.7

1.4

2,452.3
2,315.1(Billion yen)

1,933.7282.7

2,198.4
2,011.2

165.8

186.8
310.8

366.7

169.4
373.4

260.6
351.0

546.3

561.9

345.5
497.2
461.5
430.0

553.2

540.1

498.6

399.0
335.7
114.1
447.6
3/20193/2020

658.1

575.4

531.6

518.9

101.0

105.0

110.5

111.3

Unrealized gains/losses on other securities

3/2021

3/2022

3/2023

Averageremainingmaturity of yen
bonds-1.0 years
Averageremainingmaturity of〔Total〕+5.9％
foreign bonds-0.7 years〔Total〕+5.9％
Government
bonds+70.4％
Municipal bonds-15.2％
Corporatebonds, etc.
-2.7％
Investment
trusts, etc.
+2.4％
Stocks-3.7％
Foreign currency
securities+14.3%* Including overseas CDs

200
150

(Billion yen)

30.0
7.9Yen 0.1

148.9
8.9
8.3Foreign 1.7

100
50

182.2

129.9

92.4
5.2
Yen 2.6

144.1

26.4

144.4

7.9

7.7

7.8

8.6

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

150.3

0

-7.2

↓Losses

-8.3
-14.5

-50

3/20193/2020〔Total〕-46.1 billion yen
Stocks+5.8 billion yen
Yen bonds-3.1 billion yen

3/2021

3/2022

-11.4
-30.0
-6.8

Foreign bonds-15.4 billion yen
Other-33.3 billion yen

3/2023■After taking into account unrealized gains/losses on deferred hedge swaps
200(Billion yen)
150

174.9
147.1
8.9
7.9

50
↑Gains30.0
Foreign 0.3

Foreign 0.3 26.4

144.1

129.9

0
↓Losses-100
9.3 *Balance changes are due to exchange factors 3/2019
Value in original currency is unchanged

115.7

144.4

150.3

91.8
-6.1
-7.2

-5.1
-10.2

【As compared toMarch 31, 2022】〔Total〕-39.8 billion yen

Yen 0.4

80.6
Yen 2.3

100

155.5

-50

Held-to-maturity securities*

101.9

91.8

↑Gains-100【As compared toMarch 31, 2022】

148.1

-14.0
-13.7
-6.8

Stocks+5.8 billion yen
Yen bonds-8.8 billion yen
Foreign bonds-3.4 billion yen
Other-33.3 billion yen

3/20203/2021

3/2022

3/202399Impact of Rising Interest Rates① - Foreign Currency The impact of overseas interest rate hikes on net interest income is relatively controlled
USD asset and funding structure$7,573 mil. as of Mar. 2023

100%

Asset

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

60%

Loans (allfloating interest
rate)
35%

(Billion yen)

Other 7%

Other, shortterm, 19%Loans (allfloating interest
rate)
11%

Repo 16%
Floating interest
rate 83%

Floating interest
rate 92%* Short-term funding and loans with amaturity of one year or less areclassified under “floating interest rate”.

NCD 16%
Deposits
7%

40%

20%

Floating interest
rate 100%

50%
Floating ratebonds 67%

Other, long-term
1%

Floating ratebonds 34%

Asset details

Interest rate
structure

Interest rate
structure

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

Corporate bonds
8%

Funding methodEuro

Net interest
income

-0.06

-0.01

Valuation
gain/loss

-1.51

-0.28

Foreign bonds

-0.89

-0.11

Stocks /investment trusts

-0.62

0.16

■Current Bank policy on
foreign bond investments

Increase floating rate bond andasset swap investments in order toincrease net interest income while
controlling interest rate risk

Fixed rate 17%
Fixed rate 8%

USD

Gradually accumulate fixed ratebonds while carefully monitoringchanges in fiscal policy

Currency swaps
33%
Fixed rate bonds
14%$1,250 mil.

0%

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

100%

Other 17%80%

Impact on existing loans and securities fromincreased foreign currency interest rates (approx.)[Impact of a parallel 10bp increase in interest rates]€987 mil. as of Mar. 2023

Funding

AssetEuro asset and funding structure

Fixed rate bonds
15%€148 mil.

0%Interest rate/asset
structure

Interest rate
structure
1010Impact of Rising Interest Rates② - Yen Control existing interest rate risk while building a portfolio that can capitalize on the benefits of interest rate hikes
Yen asset and funding structure ￥18.5 tri. as of Mar. 2023

Yen bond interest rate sensitivity by term (GPS) ①* Change in valuation gains/losses assuming each interest rate term increases by 10bp

100%

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

Marketability
procurement, etc.
14%

80%

Marketability
investment, etc.
31%

(Billion yen)Total

9/30/2022

-0.0

-0.6

-0.4

-0.6

-1.5

-1.4

-4.7

10BPV Total (①+②)

3/31/2023

-0.1

-0.6

-0.4

-0.5

-1.0

-1.3

-4.2

Total -3.8 billion yen

Yen-denominated trust interest rate sensitivity ②

60%

Total +0.5 billion yen (+0.2 billion yen as of Sep. 2022)

Market-linked interest
rate
10%

*By holding bond bear funds, valuation gains/losses will improve as interest rates increase

Variable deposits 64%

Years remaining for fixed rate corporate loans

Short-term prime rate,
etc.
24%

Expected future increase in net
interest income due to change in
YCC framework last Dec.
(Impact on net interest income for FY2025）※Estimated based on rates post-monetary policy change

Over 5 years~

40%

10%
Fixed (residential)
3%~1 year26%

Over 3 years~5
years

20%

21%

Fixed (corporate)
26%

Fixed deposits
17%0%Investment securities
6%

Equity funding
5%

Asset

Funding

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

Total +4.0 billion yen(Billion yen)

￥4.7 tri.

Breakdown

Increase

Corporate loans

2.9

1 year~3 years

Residential loans

0.1

43%

Bonds

1.0

Total

4.0

Within 3 years: 69％ total(+2% as of Sep. 2022)11
11

Net Fees and Commissions(Billion yen)

FY2021

FY2022

ChangeFY2023(plan)Net fees and commissions
Change

27.5

28.6

1.0

31.3

2.6

Fees and commissions received

46.4

49.0

2.6

53.2

4.1

Fees and commissions payments (-)

18.8

20.4

1.5

21.9

1.5

Net fees and commissions<Main breakdown>
Investment trusts and personal annuities

7.1

6.3

-0.7

8.0

1.6

Investment trusts (trust fees)

1.7

1.7

0.0

1.8

0.0

Investment trusts (sales fees)

2.0

0.8

-1.1

1.6

0.7

Annuities and whole-life insurance

1.1

1.9

0.7

2.6

0.7

Level-premium life insurance

1.4

1.2

-0.1

1.4

0.1

Financial instrument intermediary

0.6

0.3

-0.2

0.4

0.1

Corporate solutions
Private placement bonds

12.8(13.2) 15.2(15.7) 2.3(2.4)

0.4

0.3

-0.0

0.3

12.1

2.1

12.1

0.0

M&A

0.6

0.7

0.1

0.8

0.0

Business-matching
Trust/inheritance-related business

0.5

1.3
1.7(1.4)

1.5

0.0
0.1

1.8(1.4) 0.1(0.0)

0.5

22.4

22.6

2.6
0.4

3.2
0.5

9.3

7.7

0.8

1.3

1.1

1.0

4.4
1.3
7.1

2.2

3.4
1.6

3.4

Cashless

8.0

Financial
product sales

1.4

1.8

Trusts,inheritance

15.7

15.8

Corporate
solutions

FY2022

FY2023

1.4

9.1

10.0

11.8

FY2018FY2019FY2020

FY2021

Corporate solutions-related revenue(Billion yen)
13.2

9.1

1.8 -0.0(0.3)

1.1

1.3

1.6

0.3

3.4

1.7

Payment and settlement transactions

12.6

12.5

-0.1

12.4

-0.1

Guarantee charges and group insurance costs (-)

12.1

13.0

0.9

13.9

0.8

Other

28.6

6.3

13.2

-0.1

*1 Starting from March, 2024, management succession advisory services will be recategorized as corporate solutions fromtrust/inheritance-related business. (Figures in brackets indicate the result after recategorization.)*2 FY2023 cashless revenue includes 1.2 billion yen from the transfer of Chibagin JCB Card business operations*3 Starting from the FY2021 full-year results, trust/inheritance-related business includes trust benefits (updated retroactively)

4.4
0.6
8.1

0.0

Cashless operations

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

26.1

27.5

0.0

9.9
0.4

31.3

15.8 0.5(-0.1)

Syndicated loans

Advisory contracts(Billion yen)

0.1

10.0
1.1

0.1
0.2
0.2

11.8

1.3

1.2

0.4
0.6
0.3

0.3
0.2
0.2

Other 0.1

1.5

1.3

0.5
0.7
0.4

0.5
0.8
0.4

7.0

9.3

Business
matching
Advisory
M&A
Management
succession

12.1
7.5

15.8

15.7

12.1

9.9

0.6

0.6

0.4

0.4

0.3

0.3

FY2018FY2019FY2020

FY2021

FY2022

FY202312*Including management succession advisory operations(updated retroactively)

Syndicatedloans, etc.
Privateplacement
bonds

12
12

General & Administrative Expenses
Major factors behind increase in G&A expenses

G&A expenses / OHR
Non-consolidated(Billion yen)

FY2021

FY2022

ChangeFY2023(plan)FY2022 (results)

ChangeG&A expenses (-)

84.5

82.5

-2.0

84.8

2.2

Personnel (-)

39.9

39.3

-0.5

40.1

0.7

Non-personnel (-)

38.2

36.8

-1.4

38.5

1.6

Taxes (-)

6.3

6.2

-0.1

6.1

-0.1

52.02%

47.73%-4.29%

50.2%

+2.5%

OHR

FY2023 (plan)(Billion yen)

Personnel
(-)

-0.5

Pay raises +0.5

Reduction of retirement benefitrelated expenses -0.3

+0.8 Increased health insurance premiums +0.4
Reduced G&A expenses -0.2

Nonpersonnel(-)

Revenue strengthening measures, strategic
investments +1.0

Lower deposit insurance
premiums -1.9

+1.6 Transfer from Chibagin JCB card +0.4
Increased amortization, running costs, etc. +0.8

-1.4

Consolidated

Rationalization, cost reduction -0.7

OHR

50.90%

47.37%-3.53%

48.9%

+1.6%

Taxes (-)

-0.1

New head office building realestate acquisition tax, etc. -0.2

-0.1

Lower taxes, etc.

※ OHR: Expenses / (net business income – bond-related gains/losses, etc. +net provisions to general allowance for loan losses + expenses）

OHR comparison with other banks

OHR〔FY2021 non-consolidated basis〕
Lower value indicates more efficient management

54.78%

54.61%【Year-on-year】

55.00%
52.02%

53.42%

52.99%

52.94%
50.90%

47.73%
47.37%

Nonconsolidated
OHR-4.29%

70.3%
59.5%

52.0%

Consolidated
OHR-3.53%
千葉

Chiba Bank
FY2018FY2019FY2020

FY2021

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

FY2022メガ3行平均地銀･第二地銀平均

3 mega banks Regional banks, 2nd-tieraverage*average**Source: Calculated by simple average from Nikkin Reports[Expenses / (gross business profit – bond-related gains/losses]

13
13Credit-related Expenses / FRA Claims
Credit-related expenses(Billion yen)

FY2021

FY2022

New non-performing loans
ChangeFY2023(plan)

Change(Billion yen)

7.1

0.3

-6.7

7.0

6.6

Net provisions to general allowance for loan losses (-)

1.5

-2.3

-3.8

-0.2

2.1

Disposal of non-performing loans (-)

5.6

2.7

-2.9

7.2

4.4

7.3

6.1

-1.2

10.1

4.0

2.2

1.4

-0.8

1.5

0.1

New downgrades (-)

6.5

6.8

0.3

10.0

3.1

Existing non-performing loans (-)

1.1

0.4

-0.6

0.7

0.2

Collections, etc.

0.3

1.2

0.9

0.5

-0.6

1.7

3.4

1.6

2.9

-0.4

3.0

-5bp

5bp

+5bp

FY2018Credit-related expenses (-)

Write-offs/net provisions to specific allowance, etc. (-)
Net provisions to specific allow ance for loan losses (-)

Recoveries of written-off claims*Net reversals of loan loss reserves are shown in this table divided between net provisions to both the general andspecific allowance for loan losses compared to the previous year

Net credit cost ratio (-)

6bp

0bp

【Year-on-year】〔Total〕-6.7(Billion yen)

9.5

10.4
7.1

10.2

↑Losses

2.5
-1.4

10.9

1.2
-2.6

0.3

8.3
7.3
3.2
-1.2

6.1
1.5
-1.7

↓Gains

-2.3
-3.4

11bp

8bp

9bp

6bp

0bp

FY2018FY2019FY2020

FY2021

FY2022

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

10.9
8.7
6.6

7.6

6.5

6.8

【Year-on-year】〔Total〕 +0.3

4.5

2H 4.4

2H
-0.1

5.8

4.3
2.8
FY2019FY20202.0
FY20211H 2.4

1H
+0.4

14

FY2022Disclosed claims under the Financial Reconstruction Act /non-performing loan ratio

Change (-)
11.3

10.6

Write-offs / Netprovision to specificallowance, etc. (-)-1.2
Net provisions togeneral allowance forloan losses (-)-3.8
Recoveries of written-off claims+1.6

Ratio (-)
-5bp

1.19%

1.10%

1.02%

0.96%

0.93%

(Billion yen)

122.8

【As compared toMarch 31, 2022】

118.3

115.3

113.2

114.9

18.3

18.5

16.2

17.1

18.2

63.4

55.5

56.9

54.9

52.7

40.9

44.2

42.2

41.1

43.9

3/20193/20203/2021

3/2022

3/2023

Non-performing
loan ratio-0.02%〔Total〕+1.7
Bankrupt andeffectively
bankrupt claims+1.1
Doubtful claims-2.1
Need-attention
claims+2.7

14
14

Stress Testing Based on Changes in the External Environment
Credit costs under stress impacted by changes in the external environment can be controlled
Stress test assumptions(common to micro and macro)■The impact of COVID-19 has normalized, and while there are expectations for a recovery in demand from inbound tourists due to lessening
attitudes towards self-restraint and self-help efforts, there is also an expectation that some businesses may not achieve recovery or need more time
to recover due to individual conditions.
■The impact of yen depreciation and price hikes is expected to continue, and there are concerns that this impact will materialize depending on thesituation of individual companies, such as business models and their stance on passing on cost increases.

Macro calculations

Target: All borrowers (excluding borrowers subject to credit cost calculation in “micro calculations"below and consumer loans)

Review the extraction method and degree of impact
by industry based on changes in the environment

Impact①Impact of each industry is assumed based on the BOJ
Tankan and other data.
②Identify borrowers that are concerned about deteriorating
business conditions based on financial, credit, andqualitative information.
③Estimation of credit costs under stress.

Micro calculations①
Target:■ Borrowers with a Group credit amount of ¥100 mil. or more
(excluding residential real estate leasing, finance, and public sectors,
etc.)

Credit cost stress test
(new downgrades)
FY2023(Billion yen)

FY2024

1H

2H

Total

Macro
Micro

1.0
3.2

3.1
2.3

4.0
5.6

1.8
7.8

Total

4.2

5.4

9.6

9.6

*Assuming 10.0 billion yen in new downgrades

Large

Small

Electricalmachinery/wholesale/business service

Iron and steel, nonferrous metals,
Petroleum/coal,transportationequipment

By industry
FY2023

FY2024Large

Food and beverage, hospitality, travel,
construction, chemicals, steel, petroleum

High

High

Med.

Steel, non-ferrous metals, metal products,
wholesale, business services

MediumMediumSmall

Other (*)

Small

Small

Credit costs are estimated basedon the actual conditions ofindividual companies, taking into
account external factors such as
rising prices of goods and energy
the normalization of COVID19 based on surveys of the
impact of COVID-19, etc.

※Impact of transportation is “small” for
FY2023 and ”medium” for FY2024 in light of
FY2024 issues

Micro calculations②Target: borrowers whose financial condition has been independently
ascertained by the credit examination section

Estimated credit costs based on actual conditions for each company

Individual client support◼ Examined the need for support businesses whose
Supportconditions deteriorated due to a wide-range of factors,
completedand selected approximately 2000 borrowers
100◼ Considering support measures one by one, andproposing solutions to clients, excluding
Under support
900 borrowers that do not require support, on an
1000
individual company basis
No support required◼ Conducted inspection of 400 borrowers in
900
construction and 1,200 borrowers in transportation,and support measures for 100 of these clients are Approximately 2,000 borrowers to beconsidered for support
being considered

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

Establishment of corporate
consulting office■Established within the Corporate Support
Division in order to further improve client support■In addition to ongoing follow-up support, will
provide management improvement guidance for
creditors based on industry-specific surveys led
by the Head Office■Improve collaboration with sales divisions

15
15

Earnings Forecast
Non単体
consolidated

FY2023

FY2022(Billion yen)

Change(plan)

Gross business profit

155.5

170.3

14.7

Net interest income

140.3

133.5

-6.8

Net fees and commissions

28.6

31.3

2.6

Trading account income

1.3

2.2

0.8

Net other ordinary income

-14.8

3.2

18.0

-20.0

1.5

21.5

G&A expenses (-)

82.5

84.8

2.2

Business profit (before provisions to general reserves)

73.0

85.5

12.4

93.0

83.9

-9.0

85.3

81.6

-3.7

Bond-related gains/losses

Core business income
Excl. gains/losses on the cancelation of
investment trusts-

Net provisions to general allow ance for loan losses (-)

Trading account /other business
transactions
+18.9

-0.2

Breakdown ofProfit Attributableto Owners of
Parent(difference
betweenconsolidated andnon-consolidated
results)(Billion yen)(Billion yen)

-0.2
Net interest income
Domestic

12.6

Non-recurring gains/losses

8.7

-2.7

-11.4

Disposal of non-performing loans (-)

0.3

7.2

6.8

Interest and dividends on securities

Reversal of allowance for loan losses

0.9

-

-0.9

Gains/losses on cancellations

Gains/losses related to stocks, etc.

8.3

5.0

-3.3

Ordinary profit

81.7

83.0

1.2

Extraordinary profit/loss

-0.3

-0.2

0.1

Net income

58.1

59.0

0.8

Interest on loans and deposits

Overseas
Gains/losses on cancellations

Consolidated(Billion yen)

FY2022

FY2023(plan)

Investment trusts and personal annuities

Corporate solutions*1
Trust/inheritance-related business*2

ChangeCashless operations*2

Ordinary profit

86.9

88.0

1.0

Payment and settlement transactions

Profit attributable to owners of parent

60.2

61.0

0.7

Guarantee charges and group insurance costs (-)

81.8

96.3

14.4

(Ref.)
Consolidated net business income(before provisions to general reserves)

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

(plan)FY2022
140.3
131.5
100.2
28.7
5.8
8.8
1.7

FY2023(plan) Change
133.5
128.5
103.7
21.4
1.7
4.9
0.6

-6.8
-2.9
3.4
-7.2
-4.1
-3.9
-1.1

Domestic loanbalance/yield

-0bp
0.89%

28.6
6.3
15.2 (15.7)
1.8 (1.4)

1.6
12.5
13.0

31.3
2.6
8.0
1.6
15.8 0.5(0.1)
1.8 -0.0(0.3)
3.4
1.7
12.4
-0.1
13.9
0.8

-0bp

11,529.1

11,276.1

FY2022

Excluding
Ministry of
Finance loans

0.88%

0.87%
(Billion yen)

Net fees and commissions

6.6

FY2023(results)

85.7

7.0

61.0

FY202273.0

0.3

G&A expenses-2.2
Credit-related
expenses
Other
-6.6
-4.9

Net interest income-6.8

Net business income

Credit-related expenses (-)

Net fees andcommissions
+2.6

60.2

Dif. between
consolidated andnon-consolidated
-0.1

0.86%
11,970.8
11,745.6

Excluding
Ministry of
Finance loans

FY2023(plan)*1 Starting from FY2023, management succession advisory business will change from trust/inheritance-related to corporate solutions.
(Figures in parentheses are results after the classification change.)*2 Cashless planned value includes 1.2 billion yen associated with absorption-type merger with JCB

1616

New Mid-term Plan

17
17

Looking back at the previous Mid-term Plan
Major Achievements of Management Goals(billion yen)

Basic Policy 1

Continue to evolve closely with our customers

Basic Policy 2

Continue to create new value for our customers’ futures

Make proposals based on
individual life plans
Enhance Corporate Solutions

Virtual residential loan contract
signing
Establish new Area Sales divisions

Establishment of Chibagin Market
Co., Ltd.

Expand cashless operations
Establishment of On Ad Co., Ltd.

155.5

Gross
Business
Profit86.0

81.9
Expand app/portal features

161.5

156.0

152.7

84.5

G&A
Expenses

82.5
60.2
54.4

49.6

48.0
Profit attributable toowners of parent

Basic Policy 3Strengthen our Alliance Strategy
TSUBASA Alliance

Chiba-Musashino Alliance

Expand sharing of IT systems, including
smartphone app

Expand collaboration including cashless
operations with franchise locations.

FY2019FY2020

FY2021

FY2022

Chiba-Yokohama Partnership

Alliance with Sony Bank

Strengthen collaboration, including customer
supportKPIs for FY2022

Basic Policy 4

Achieve sustainable management

Profit attributable to owners of parent
Consolidated ROE

Promotion of sustainable finance

Enhance carbon-neutral initiatives

Expand climate-related disclosures

Development of DX personnel

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

Non-consolidated OHR

Results
60.0 billion yen

60.2 billion yen

Achieved

Around 6.5％

6.38%

Achieved

Lower 50% range

47.7％

Achieved

Net business income per employee: 19.0 million yen (3/2023)

18
18

Defining our Purpose and Vision

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

PurposeThe Bank Group exists to create “societal value” by contributing to the resolution of regional issues in addition to providing“functional value” to financial institutions.
In a constantly changing world, Chiba Bank aims to be “a place where our stakeholders’ hopes can come to life” within the region.
ⅰ Contribute to the resolution of regionalsocietal issues

Broaden horizons as a company
Functional
value

＋

Societalvalue

ⅱ Support for prosperous lifestyles

Each person’s hopeⅲ Offer an empathetic set of values

Companies / Investors

Sustainable growth

Individuals

Prosperous lifestyles

Employees

Self-actualization*Regional societal issues: a wide range of issues concerning the sustainability of the local community, such as COVID-19, digitalization, SDGs, regional revitalization

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

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

19
19

Overview of the 15th Mid-term Plan
The 15th Mid-term Plan Engagement Bank Group – Phase 1 –Title

Phase 2~

(Plan Period: April 2023 ~ March 2026)

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 experienceP29

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

Deliver personalized proposals utilizing a wide range of data.
Provide in-person, remote, and digital channels most-suited to thecustomer.

II. Enhancing the quality of existing business

P31

P42

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

P45

Base IDX

P53

Base II

Base III

GX

P48

Alliances

Base IV

P50

Human CapitalBase V

P58

Goals for FY2030

Group GovernanceConsolidated ROEManagement
KPIs

8%

Profit attributable to owners of parent

Tier 1 common equity capital ratio*２

Consolidated ROE *1

75.0 billion yen

10.5% ~ 11.5%

Above 7%

Profit attributable toowners of parent

Consolidated net business income

Consolidated OHR

100 billion yen

120.0 billion yen

45%

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

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

20
20

Improving our P/B Ratio
Industry comparison

Perspective on the P/B ratio*

P/B ratio

＝
＝

ROE
ROE

×
÷

◼ The P/B ratios of regional banks are experiencing a downturn, indicating low
expectations for growth in the regional banking industry

PER◼ That being said, Chiba Bank has received some positive evaluations from themarketCost of shareholders’ equity－ profit growth rate

Regional banks ROE
forecast and P/B ratio

If ROE ≧ (cost of shareholders’ equity－profit growth rate), P/B ratio will be 1 or over

The Bank’s current P/B ratio is approximately 0.6.
In order to achieve a P/B ratio of 1, we will need a strategy of improving our ROE andincreasing our profit growth rate while lowering equity costs.

ROE⇒ Improve

Equity costs⇒ Lower

Profit growth rate

⇒ Increase

Actual PBR (FY2024)

P/B ratio improvement measures

Chiba
Bank

0.6

0.4

0.2

*The Bank’s administrative equity costs are estimated using CAPM

Improvement measures⚫ Source: Nomura Securities

Further improve ROE◼ Improve ROE by improving
RORA
approx.8％
7％ or over
6.38％
FY2022

FY2025

FY2030Lower capital costs

Ongoing profit growth◼ Reduce “information asymmetry”
between the Bank and shareholders
by expanding non-financial
disclosures and improving
shareholder engagement◼ Consolidated net income plan

Shrinking risk premium beta

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

(Billion yen)

60.2

75.0

100.0

⚫ Composed of first-tier regional banks, excludes
special banks/outlier banks

0.0
0.0%

2.0%

4.0%

6.0%

8.0%

ROE forecast (FY2023, TSE standard)
FY2022

FY2025

FY2030* Actual formula is PBR = 1 + (ROE - cost of shareholders’ equity) / (cost of shareholders’ equity growth rate). The formula shown here is presented as a practical simplified version.

21
21

Growth Strategy
FY2022 results

Fortify existing business

Net income…￥60.2 bil.
RORA…0.75％

ROE…6.38％

Resource allocation
PeopleIdentify 370 employees via rationalization/
review of branch network, and allocate themto growth areas

Reorganization

PeopleRetailIncrease market share in areas
abandoned by other banks
Increase loans via new branches

Enhance businesssuccession, M&A

New residential loan
Incorporate newcustomer base

Deepen transactions fromtrust/testamentary services

Improve consulting
Improve proposals to nonborrowers

Diversified financemenu

Improve closing rate offinancial product sales

Ensure proposal chances
through multiple channels

Increase in net income from fortifying existing business… approx. ￥12.0 bil.

RORA improvement…+0.05％

Note

Head Office(planning)55

Head Office (sales)

85

Enhance specialists

Head Office(administration)

40

Consolidate administration ofsales branches at Head OfficeGroup companies

70

Prioritize sales divisions

Sales branch

110

Branch opening, enhance RM

HR development

20

RM development, DX trainee etc.

Total

Corporate

Strengthen sales branch support
structure

Digital/new business
Deepen new business

New initiatives

Additional app, portal
features

Development of regional
ecosystem (cashless)Advertising

Energyproduction

Transaction data, credit
checks using AI, etc.

Business that stands upstream ofcommercial distribution(Chibagin Market)

BaaS

Metaverse

Digital370

Things/money(Billion yen)

Strategic
investments

Expenses

Existing
business

5.6

1.8

Branch network, sales branchterminal maintenance, etc.

Digital/new
business

6.9

3.5

App, portal, BaaS, advertising,
etc.

Other

3.5

8.7

Human capital, digital
infrastructure, etc.

Total

16.0

14.0

Increase in net income from new business initiatives… approx. ￥3.0 bil.
RORA improvement…+0.03％

Notes

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

30.0

FY2025 plan

Net income…￥75.0 bil.
RORA…0.83％

ROE…7％ or over22
22Equity Costs / Profit Growth Improvement Measures
Reducing equity costs

Sustainable growth: consolidated net income plan

Issue reducing equity costs: disclosure of operational risk
■Uncertain results due to non-performing loans■Uncertain results due to fluctuating revenue streams

Developing several new
businesses with the aimof sustainable growth100

Profit attributable toowners of parent

New business/digital

75.0
Fortify existing business(Billion yen)60.2

Careful release of information, including background and outlook

NPL ratio compared to other banks

OHR compared to other banks〔as of 3/2022〕

0.95%

Reg. 地銀･第二地銀平均
banks/2 nd -tieraverage **Source: Nikkin Report(simple average, non-consolidated basis)(plan)

Chiba

メガ3行平均3 megabanks
average*

地銀･第二地銀平均

Reg. banks/2 nd -tieraverage **Source: calculated using simple averages from Nikkin Report[Result differs from Bank calculations, quoted here for comparison only.

Issue reducing equity costs: conducting proper IR activities■Proper information disclosure, including non-financial info
■Enhance communication with investors■Acquire external evaluations
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Progress

Ref.
page

Cashless

Preparing to further expand services

35

Chibagin Market

Housing business STEP 2 start

42

Advertising

Operations launch May, 2023

43

Real estate funds

Currently being proposed as an asset securitization
solution for customers

42

Energy production

Subsidiary established April, 2023

43

On Ad

Corporate contract begins April, 2023

42

BaaS

Ongoing negotiations with individual companies

43

Metaverse

Ongoing events with companies and organizations

43

AML Center

Preparing to establish nee company

43

Collaboration withSony Bank

Discussing setting up WG

48

Business

52.0%

千葉

メガ3行平均3 megabanks
average*2031/3(plan)

70.3%

59.5%

千葉
Chiba

2026/3(results)

Lower value indicates more efficient management

2.11%

0.96%

2023/323
23

Earnings Targets①
Contributions to net income from new business and DX, in addition to existing businessChange in profit attributable to owners of parent / ROE

FY2022(Billion yen) (results)

FY2025(plan)

ChangeNet interest income

155.5
140.3

194.0
147.6

38.4
7.2

Shareholder
capital basis

6.38%

Net fees and commissions

28.6

40.0

11.3

TSE standard

5.68%

Other gross business profit

-13.4

6.3

19.8

(billion yen)

-20.0

2.1

22.1

G&A expenses (-)

82.5

88.0

5.4

Business profit

73.0

106.0

32.9

93.0

103.9

10.8

Non-consolidated

Gross business profit

Bond-related gains/losses

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

85.3

100.4

15.1

Net business income

73.0

105.8

32.7

Extraordinary profit/loss

8.7

-4.2

-12.9

8.3

5.0

-3.3

Ordinary profit

81.7

101.6

19.8

Net income

58.1

71.5

13.3

Credit-related expenses (-)

0.3

8.0

7.6

Stock-related gains/losses

Consolidated
Consolidated net business income

FY2022ROE

FY2025

FY2030Above 7%8%

100.0
Above 6%

7%

New business / DX

75.0

Refine existing
business

60.2

FY2022

FY2025

FY2030(results)(plan)(plan)

Including bond-related
gains/losses rebound of＋20.0

Profit attributable toowners of parent

Other
+19.8

Net feesand commissions+11.3
Net interest
income+7.2(billion yen)Dif. between consolidated
G&A
and non-consolidated
expenses+1.3
Credit-5.4
costs Stock-related
Pensions,-7.6 gains losses
etc.
Taxes
-3.3
-1.9
-6.6

75.0

60.2

(before provisions to general reserves)

81.8

120.0

38.1

Profit attributable to owners of parent

60.2

75.0

14.7

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

FY2022(results)

FY2025(plan)

24
24

Earnings Targets②
Cover the decline in BOJ deposits through significant increases in loan interest

Balanced revenue increases in addition to recovery of financial product sales

Yen net interest income

Net fees and commissions

Unsecured+1.7

Cashless+4.1

Corporate+9.5

Residential+1.0

Cancellation oftrusts
-4.1

134.9

Trusts/Corporate
solutions inheritance+0.7
Sale of financial +1.7
products
+4.1

140.2
BOJ, other-2.9

New services, other
40.0
+2.5

Group trusts/
guarantor fees, etc.
-2.0

Increase in group trusts/guarantor fees due
to increased residential loans

28.6

+11.3
+5.2
FY2022

Corporate

Residential

Unsecured

Cancellation of trusts

BOJ, other

FY2022(results)

FY2025

FY2022
FY2022(results)

FY2025(plan)(results)(plan)(Billion yen)

■FY2023 1Q (Apr.~Jun.)
・YCC review▶ Long-term rates increase■FY2023 2Q (Jul.~Sep.)
・Repeal of YCC・End of negative interest rates

Breakdown

Total

Effect 1: Increased loan interest from increased long-term
interest rates+5.0

Effect 2:Increased yen bond interest from increased longterm interest rates+1.8

Effect 3:Increased loan interest from increased short-term
interest rates+2.1

Effect 4:Increased deposit interest from increased rates

-1.3

Total

▶ Short-term/depositinterest rates increase

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

Corporate solutions

Trusts/Cashless

Group trusts/

3.2

7.5
Total effect (after taxes)＋￥5.0 bil.
(FY2025 estimate)(Billion
yen)

10.3
0.5
2.2

10.5
0.2
0.8
7.7
0.6
2.6
1.5

4.2

New services, other

FY2025
FY2025(plan)

Corporate solutions

Investment trusts and personal annuities

End of YCC/negative interest rates
Expected scenarios

Sale of financial*Increase/decrease
factors after categorization
succession
products
inheritance change to management
guarantor
fees, etc. advisory
operations (Starting from March, 2024, management succession advisory services will berecategorized as corporate solutions from trust/inheritance-related.)

6.3
0.1
0.3
1.2

2.1

3.1

1.9
4.3

2.9

2.5

FY2019FY2022(results)

Non-finance
+0.8

Other
+0.0
Financial
instrument
intermediary

17.5
15.7

(Billion
yen)

4.0
3.2

+0.4
10.0

Level-premium life
insurance+0.8
Annuities andwhole life insurance

+1.2

6.4
1.2

1.9
12.4
8.1

13.4
Finance＋0.9

5.2

Investment trusts

FY2016FY2025(plan)+1.6

FY2016FY2019FY2022(results)*Including management succession advisory
operations (updated retroactively)

FY2025(plan)

25
25

Earnings Targets③
Credit-related expenses expected to remain at prior levels,
excluding “precautionary provisions”

Further decrease OHR through top-line expansion despite
increased expenses due to strategic investments
FY2022

FY2025(plan)

Change

82.5

88.0

5.5

39.3

40.0

0.7

(Billion yen) (results)

G&A (-)
Personnel (-)

36.8

41.3

4.4

Taxes (-)

6.2

6.7

0.4

[Ref.] Cons. G&A

89.3

94.4

5.0

OHR (cons.)*47.3%

Non-personnel (-)

45%

Annualwage Policy
increase +1.3
+2.4

39.3

40.0

Change to Other
personnel -0.2
structure-2.8

FY2022(results)(plan)

8.0

7.6

Net provisions to general allowance forloan losses (-)

-2.3

0.2

2.5

Disposal of non-performing loans (-)

2.7

7.8

5.0

6.1

9.6

3.4

New downgrades (-)

6.8

9.5

2.6

Existing non-performing loans (-)

0.4

0.7

0.2

Collections, etc.

1.2

0.6

-0.6

3.4

1.8

-1.6

0bp

5bp

+4bp

Recoveries of written-off claims

Net credit cost ratio (-)

Change / ratio

88.0

Policy+5.2

Net credit
cost ratio
Excl.
precautionary
provisions

Cost reduction-2.4

Personnel
+0.7

8

6

(Billion yen) 9.5

9Precautionary
provisions

3.2(Billion yen)

10.9
8.7

0
2
7.1

2.2

5

9.5

6
10.4

New non-performing loans(bp)6

Creditrelated
expenses・Digital infrastructure
・Expand human investment

Change0.3

FY2025(plan)

Major factors behind increased expenses

82.5(Billion yen) (results)

Write-of f s / Net prov isions to specif ic allowance, etc. (-)-

New banknote, etc.
+2.0

FY2025Credit-related expenses (-)* OHR: Expenses / (net business income – bond-related gains/losses, etc. +net provisions to general allowance for loan losses + expenses）

Setting wage increases/
higher starting salaries⇒ see P. 50 “Base IV”

FY2022

3.7

-1

6.5

6.8

2.0

1.9

8.0

2.2

2.6

1.8

0.3
FY2022
FY2022(results)

Personnel

New banknote, etc.

PolicyCost reduction

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

FY2025
FY2025(plan)FY2019 FY2020 FY2021 FY2022(results)

FY2025(plan)FY2019 FY2020 FY2021 FY2022(results)

FY2025(plan)

26
26

Capital Policy
Maintain CET1 ratio* from 10.5% to 11.5%, aim to improve dividend payout ratio
Consolidated capital adequacy ratio / risk-weighted assets【As compared toMarch 31,2022】

12.63%

Capitaladequacy ratio-0.47%
CET1 ratio-0.40%

12.79%
12.12%

12.11%
11.63%
12.28%

11.97%

11.94%

11.51%

11.54%(Billion yen)

8,455.9

8,698.6

1,112.9

1,159.6

7,342.9

7,538.9

6,519.2

6,666.3

7,142.03/20193/20203/2021

3/2022

3/2023

7,587.7

7,705.5

1,068.5

1,039.1

8,098.7
956.6

Basel III
finalization basis

Net
income3/2023

Risk-weighted
assetsbefore floor
adjustments

Finalization Finalization
first year* completed*

12.11

11.63

15.5

12.8

CET1 ratio

11.94

11.54

15.4

12.6

on securities

10.58

10.57

11.5%

Asset
accumulation

Targetrange

Shareholder
return14.1

Capitalaccumulation

3/2023 results

54.0

Consolidated
Dividend ratio

41.7
Dividend ratio: over 35%
Long-term goal: 40%

29.9

22.9

22.0

24.5

28.1

29.9

32.6

(yen)
2H
Dividend

Flexibly perform share buybacks within the required capital
range

50.3

48.6

47.9

Consolidated
shareholder
return ratio

1H
Dividend

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

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

Term-end

Shareholder return policy

11.6※ Rough calculation of 3/2023 results on a Basel III finalization basis.
In principle, the starting application date is one year past the displayed date.

Appropriate
level

10.5%

Floor
adjustments

Capital adequacy ratio
Excluding unrealized gains/losses

Additional shareholder
return, etc.

Growthinvestments

Total riskweighted assets
+2.8％

51.2
3/2022Inorganic
investment

Around
11.6%

(%)

(%)

Target CET1 ratio*

Capital management viewpoint

13

33.9

35.6

15

15
15

7.5

7.5

8

10

11

7.5

7.5

8

8

9

11

13

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022◼
◼

FY2023（estimate)

6 consecutive years ofdividend increases
Double from FY2017(dividend per share total)
27
27

Basic Policy Overview

28
28

Basic Policy I: Creating the Ideal Customer Experience
Utilize data to make proposals that that address each customers’ issues in order to build a fanbase
End-of-life

Proposals that stand upstream ofcommercial distribution
Collect data from awide range of sources

Retirement

・Improve customer engagement
・Collect even more data

・Retirement package
Raising children

・School loan
House/car purchase

SNS

App

Corp. Portal

・Residential loan

EmployeeATM

Client liaison
Student
・Open account・Debit card

・Payroll deposits
・Credit card
・Card loan
・Utility payment

Marriage/children

・Auto-loan

・Life insurance

・Non-life
insurance

・Assetmanagement

・Testamentary
trusts・In-vivo gifts

・Asset management
review・Insurance review

Further enhancement of proposal lineup
through non-financial services
Deliver life plan proposals to each customer
through their optimal channels

Anticipate customer needs andlife plans through data analysis

DigitalRemoteHouse

Car

BridalTravelIn-person
Chibagn Market

Elicit customer needs

Green energy

NursingEnd-of-life

Desirable products and services
Examine household budget and life plan
Financial literacy / asset management
information

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

29
29

Digital Marketing Strategy
Increase gross business profit by 6.0 billion yen by through more digital customers and promoting the use of products
Cross-use*2

Policy ②: Expand product use

10％

Cross-use*2

Product use

11％

53％

37％
Product use

Account
use*1
Account only

2％

Account
use*1

Gross
business profit
per customer
per year(FY2022)

Product user
￥37.9 thou.

Account user
￥ 5.6 thou.

Digital￥ 16.4 thou.

Non-digital￥ 6.9 thou.

Change in customer composition
during the mid-term period

Account only
￥ 0.3 thou.

FY2025

FY202241％
22％

Account only

Non-digital customers
3 million ⇒ 2.4 million

Bank customers: 4 million⇒ Increase to 4.2 million
during mid-term period

Digital1 million

Non-digital
2.4 million

25%

Sales
branch
0.5 million

Digital customers
1 million ⇒ 1.8 million

Digital
1.8 million

Digital1 million

37％

Non-digital
3 million+200,000
people75%

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

57%

Change in revenue composition
during the mid-term period

FY2025

FY2022Non-digital
3 million

Policy①: Shift non-digital customers to digital customers

43%

Non-digital￥20.3 bil.

Digital￥17.6 bil.

54%

46%

*1. Account use: Balance of 300,000 yen or more and account receives salary/pensions*2. Cross-use: Uses two or more types of products

Non-digital￥15.8 bil.

36%＋￥6.0 bil.

Digital￥28.1 bil.

64%
30
30

Basic Policy II: Fortify Existing Business (Retail① Financial Product Sales)
Delivering optimal asset management by combining in-person and virtual channels
Fees and commissions from financial products
DigitalRecurring revenue rate

Offer each financial service through the app/online(Billion yen)
42%

Asset management portal site

44%

8.1

Financial literacy/
Financial column

0.7

Offer highlyconvenienttransaction
channels

Life plan
simulation

Elicit needs/proposals

2.0

Diagnose management styles

Data utilization

Fin. instrument
intermediary
+0.4

2.1
7.1
0.6
1.4

Level-premium
insurance
+0.8

6.3
0.1
0.3
1.2

3.1

1.9

1.6

1.3

1.1

2.4

2.0

1.4

1.7

1.7

FY2020

FY2021

FY2022

Management simulations

On Ad

Other
+0.0

10.5
0.2
0.8

46%

App investment trusts

Enhance contact points

DigitalBank【Year-on-year】〔Total〕+4.1

Highly-convenient digital contact points (mainly asset accumulation)

0.8
2.7

FY2025

Annuities, whole-life
insurance+1.2
Investment trusts（sale）+0.7
Investment trusts(trust fees)+0.9

Neutral advice

Financial product balances (Group total)
In-person ① Highly professional in-person proposals (mainly affluent customers)
Specialize in understanding needs,
propose solutions to issues in tandem with teams of experts
Comprehensive
financialconsulting

InheritanceIn vivo gifts

Review ofasset portfolio

Diversification ofmanagement tools② Promote use of NISA by expanding base
New proposal tool

Paperless contracts

Enhance portfolio proposals

Create time for proposals(Billion yen)
2,068.9

2,116.4

2,100.3

762.9

761.8

741.6

30.4
101.4

21.0
25.8
97.4

24.7
18.8
94.4

877.8

867.6

844.7

296.3
FY2020

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

342.6
FY2021【As compared toMarch 31, 2022】〔Total〕-0.7％
Group companies-2.6％
Fund wrap+17.6％
Foreign currency
deposits-27.2％
Public bonds
-3.0％

375.9

Personal annuities-2.6％

FY2022

Investment trusts+9.7％

FY2025Investment trustbalance

600.0 billion
yen* Starting from the FY2022 full-year financial results, “foreign currency deposits” only include retail customer balances (updated retroactively)

31
31

Basic Policy II: Fortify Existing Business (Retail ② Trust / Inheritance)
Further expansion of trust/inheritance business opportunities in view of an aging Prefecture
Prefectural elderly population trends(Thousand people)(Created by Chibagin Research Institute)

Estimate

Results

1,734

1,771

1,809

1,878

1,989

2,029

Future income fromheld testaments

Trust/inheritance-related fee income(Billion
yen)

2.20

(Billion yen)

3.34

1,605
1,338
1.10

1.45

1.48

0.29

0.37

2.85

2015

2020

2025

2030

2035

2040

2045

1.15

0.82

Expand trust /inheritance operations

Develop non-financial services

Develop new products/
improve existing products
Lateraldevelo-pmentRenovations

Two-family homes

Nursing homes

Travel products

Funeral/headstones

Gain the trust of our customers andunderstand other financial assets

3/21

3/22

1.11

2.39
Chiba Bank

3/23

613.8

Investment
products

519.0

3/21

Dig
deep

3/22

3/23

Insurance
Sale of realestateStrengthen
collaboration

3/21

3/22

3/23

Testamentary trust trends(FY2021 data)

・Verification system based on case-load
・Steady growth of employee skills

587(People)Over
20 cases:18
Over
10 cases:
89

370

254

Over
5 cases:224

On Ad
Hoken No
Madoguchi

Elderly population Number of notarized(Over 65)
wills draftedJapan

36.72 million

106,000

Chiba

1.73 million(4.77%)(estimate) 5,057

793 acquired by the bank in FY2021≒ 15.7% of wills within the prefecture
Estimates are calculated by multiplying Japan’s total populationby the population ratio of Chiba prefecture (4.77%).

Over
3 cases:256

3/20

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

Chiba Bank
3/26

Inheritance professionals

484
Expand transactions
utilizing held assets

3.19

2.77

*Excluding management succession advisory operations(updated retroactively)

Use of Chibagin Market

705.1(Billionyen)Partners

Partners

Expand business matching

Total assets uncovered throughinheritance operations

0.73

0.57

0.45

0.28

2010

3.92

3/21

3/22

3/23

32
32

Basic Policy II: Fortify Existing Business (Retail ③ Residential loans)
Optimize proposals at each stage: Review ➡ Loan execution ➡ Repayment

Initiative policies

Residential loan execution total

Residential loan balance

Enhance residential loan business(Billion yen)(Billion yen)Concrete measures

Review

Chibagn Market

Approach before
considering borrowing

3,917.7■Deliver proposals from upstream ofcommercial distribution throughconsulting services

420.0

4,310.0

3,834.3

349.2

352.4

347.3

85.3

90.4

91.9

261.9

255.3

3,736.1

Other

Application

Increase number ofpre-screened applications
Increase rate of finalscreening applications

263.8■Improve relationship realtors(Share development info, support special projects)

Chiba Pref.

■Enhance internet housing loan
center

3/21

3/26

FY2020

FY2021

FY2022

FY2025■Establish new guarantee fee
categories

Borrow / repay

Cross-use of insurance, investments, cards, etc.
Respond to demand for remodel/relocation■Non-financial products
Sale of housing-related products

PostCOVID

0.60％
0.43％

PostCOVID

0.18％

0.34％ 0.33％
0.31％(Billion yen)
15.4

0.05％
0.06％ 0.05％ 0.05％

15.2
12.4 11.612.6(Billion yen)
4.4
2.3

3/12

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

Guarantor payment total/rate

Overdue loan balance/delinquency rate
Residential loans
Delinquency/guarantor rate

Credit check(Upper income limit, ease requirements for those raisingchildren)■Financial products
Expand/launch transactions
beyond residential loans

3/23(Volume strategy, expand target area)■Review screening criteria
Flexibly set conditions basedon needs

3/22

3/15

3/18

‘3/21

3/23

3/12

3/15

3/18

1.8 2.0 2.0
‘3/21

3/23

33
33

Basic Policy II: Fortify Existing Business (Retail ④ Unsecured Loans)
Maintain asset health while increasing balances(Billion yen)

In-app loans “One Loan”
Launch (March 2023~) NEW

Card loan channel breakdown

Unsecured loan balance
2,36.0

Point 1. Advertise to eligible borrowers

170.4

157.8

61.7

60.0

177.0

183.6

59.2

60.7

Teller
1.8%

194.0

117.8

122.9

App
30.2%

Card loan￥6.47 bil.
108.7

Pre-approve/Ads

64.2

FY2021 4Q

97.7

Teller
0.7%

App
16.3%

129.8

FY2022 4Q

IB
5.0%

application
Point 2. Shorten application time with app￥7.80 bil.
IB
3.7%

ATM
65.4%

ATM
76.9%

Furtherstrengthen app
channelPoint 3. No need for cards, contracts

Multipurpose
3/19

3/20

3/21

3/22

3/23

3/26

Multipurpose loan execution total(Billion yen)
39.1
36.3
32.2
2.8
1.4

3.5
1.6

12.0

3.7
1.9

40.6
1.9
1.8

38.0
2.0
2.2

11.4

42.0
2.0
2.3

Card loans (Chibagin Securities)

Overdue loan balance/delinquency rate

Overdue loan balance/delinquency rate

Other
Reno.
1.12％

13.7

Post-COVID

School

11.2

13.0

Multipurpose loans (Chibagin Securities)

11.5

0.45％

1.65％
0.43％
0.33％

25.3
16.3

19.0

20.3

22.4

23.9

FY2018FY20190.23

0.22

FY2020

FY2021

0.44

1.63％

1.81％

1.65％

0.38％
Car

0.22 0.19 0.19

FY2022

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

3/12

0.21

0.18 0.16 0.17

(Billion yen)(Billion yen)
FY2017

Post-COVID

2.15％

3/15

3/18

3/21

3/23
3/22

3/12

3/15

3/18

‘21/3

3/23
3/22

34
34

Basic Policy II: Fortify Existing Business (Cashless)
Further improving base of cashless operations towards the establishment of a regional ecosystem
Number of card
franchises/transactions
10/2022~

1/2022~

Local governments

4/2022~

cashless operations

Regional
tradingcompaniesEC
payment

QR codepayment〔 EC 〕

735.2

4/2023~

Expandcollaboration withother industries

J Debit
Ticket-vending
machineAutomatic
payment
machineB to B
payments

10/2019~

10/2022~“Recurring”[Recurring bill
payments]

JCB franchise

Add brand(for inbound)

operations handled
by the Bank

Multisettlement
terminals

POS
registers①TSUBASA cashless
Payment platform construction

3/2021~
VISA
debit

10/2020~TSUBASA
pointsPayment solutions

33

for medical

FY2019institutions

47

69

Number of
franchiselocations(thousand)

FY2022

FY2025(results)(plan)②Collab with apps, etc. ③Establishment of regional
cashless economic zone
Expand services
Card holders/balancePartnerfranchises

Corporate
debit

Connection with Chiba
Bank App(control function, etc.)

Customer referral
support for franchises(Coupon delivery/mobile order)

265.2

10/2020~
10/2020~446.9

3/2021~

3/2021~

10/2020~304.0

Yearlytransaction total(billion yen)

184.3

10/2020~

Virtualaccount
GooglePay

10/2022~

Point
investment

Digital gift
certificate withpremium
Use points at
franchiselocations

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

(billion yen)

155.4
Card
1,188 holders
834

NEW

Yearlybalance(thousand)

548
FY2019FY2022

FY2025(results)(plan)

35
35

Basic Policy II: Fortify Existing Business (Corporate ① Strengthen Promotional Structure)
Provide convenient services and useful information through the corporate portal, contribute to solving corporate management issues as a partner to management
Form strong customer connections through digital and in-person channels

Highly-convenient digital contact points
DigitalDigital channel that serves as a hub for eachservice that connects business operators and banks

Indispensable basic infrastructure
for business activity
Basic financial and communication functions
Chibagin
Business Portal

Business information■ Strengthen customer connections

Digital services
Borrowers

Provide solutions to a wide range of management issues
B/S management support

P/L management support

AssetsHigher sales

Asset liquidation
with R/E funds

・Reduction of fixed assets
・Expand/rebuild production bases
・Use of idle assets
Liabilities/net worth

・Rationalize payment operations
・Stable capital funding
・Diversification of funding methods
・Stock succession

・Expand sales routes (via Chibagin Market EC site)
・Support for efficient collection of proceeds
・Support for new product development

Cost optimization
・Optimize production costs
Support sales via
advertising・Advertising, PR support
・Personnel introduction service
・Optimize expense payments＋ Non-borrowers■ Accumulate transaction data (including other banks)

Support for formulating various business plans(Capital investment, SDGs strategy, DX, HR development, etc.)

Connect to the portal anytime
In-person, specialized proposals

In-person

Provide the expertise of a consulting firm

Building an advanced proposal system
Sales divisions
・Improve inter-division collaboration
Business Coordination Division (new)Close support for essential management issues

・Strengthen Group-wide proposals
Group Strategy Division (new)・Enhance overseas network

Focus on financial business

Expand non-financial business

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

Credit screening unit
・Understanding business partners’ conditions in
response to a changing environment
・Consider solutions in tandem with sales divisions

Allies・Collaboration with Alliance banks
・Expand business alliances that contribute tocustomer support

36
36

Basic Policy II: Fortify Existing Business (Corporate ② Branch Network)
Differentiate from other Banks by maintaining a strong branch network, further increase share of loans within the prefecture and expand corporate service transactions
Total number of branches in Chiba Prefecture* Excluding branch-in-branch, sub branch, loan centers, etc.

Prefectural Growth Area

38%
35%

Growth rate of business loan average balance(excluding public sector)

Chiba Bank
prefecturalshare

FY2022 averagebalance￥3.86 tri.

391
71

349

[Total]52

Major Banks*1

6.2%
3.9%

183

166

Other regionalbanks in Chiba
Pref.*2

FY20193.9%FY2020

FY2021

Prefectural Growth
Area

3.4%

FY2022

Regional
Revitalization Area

Regional revitalization area
137

4/2019131

Chiba BankFY2022 averagebalance￥0.34 tri.

4/2023
7.2%

Source: Chiba Bankers Association

6.0%

Prefectural branch trends■Chiba Bank

：137

■Major/other regional ：254131（▲4%)

3.9%

3.3%

218（▲14%）*1 Mitsubishi UFJ, Mitsui Sumitomo, Mizuho, ​Resona*2 Keiyo, Chiba Kogyo

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

FY2019FY2020

FY2021

FY2022

Accelerate growth by actively establishingbranches outside the prefecture (plan)■Mito Corporate Sales Office → branch (Nov.)■Hamamatsucho Corporate Sales Office → branch (Dec.)
37
37

Basic Policy II: Fortify Existing Business (Corporate ③ Corporate Solutions)
Record-high corporate solutions revenue for the 12th consecutive term
Corporate solutions-related revenue*No breakdown for ”Other” (10 million yen for FY2022)【Year-on-year】〔Total〕+2.49

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

Project finance

15.70
1.52
13.21
11.84

1.33

1.20

0.49
0.60
0.31

(Billion yen)
10.08
9.14

1.18

1.10
0.02
0.19
0.09

0.19
0.29
0.20

0.31
0.25
0.22

0.53
0.73
0.40

7.09

Advisory
+0.03

PFI

4.02
Non-finance revenue

M&A
+0.12
Management
succession
+0.9

12.14
9.33

Business
matching+0.19

Syndicatedloans, etc.
+2.16

Tomatohbiomass energy
generation

Gunma
Shinmakimega-solar
Aichi Tahara
Biomass energy
generation
13.48

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

9.98

Finance revenue

7.55

0.61

0.63

0.43

0.43

FY2018FY2019FY2020

FY2021

0.34
FY2022

Kodaira City school lunch project
Tachikawa City school lunch project
Hiratsuka-shi school lunch businessPrivateplacement
bonds
-0.09
FY2025*Including management succession advisory operations(updated retroactively)）

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

NEW

Choshi
Designated as
promotion area
(8 areas nationwide)

Ichihara Yawata
Wharf biomassenergygeneration

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

38
38

Basic Policy II: Fortify Existing Business (Corporate ④ Advisory / M&A)
Cultivate various needs through ongoing communication as a partner
Number of contracts/
fee income

Contract breakdown
239

227

100%

47
5
0.31

80%

0.53

0.49

6％

8%
3％
6%

11%

11%

11%

Other

14%

Digitalization

19%(Billion yen)

0.19
0.02
FY2018FY2019FY2020

FY202160%

FY2022

FY2022

17%

6%

40%

Under
consideration

Yearlymeetings

250

Subsidysupport10
1

Organizational
restructure

4Management
system5

Labor
Mid-term/management
strategy

1H

12%
20%

500

17%
6%
7%
11%

36%

Incl. 200 ICT
consultations

19%

15%

2022/32023/30%2021/3

M&A promotion

Active4030
600Start (7/21)

Stockprojects

Projects(M&A/businesssuccession)
Revenue(M&A only)(Billion yen)

Current (March 31, 2023)

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

FY2018Business matching4

Consulting

17

15

2H

1H

① Efficiency② System flow
setup support③ IT strategy

2H
FY2022

M&A by industry

M&A by scale

214
Medical/nursing
13%

148
103

98
0.73
0.60

0.19

7

Systemimplementation
support13

FY2021

60

900

2

9

M&A/businesssuccession

Complete

24

6Tourism
strategy

10%Incl. 50 ICT
consultations

24
1

11%

25％
19%

Complete

M&
A

ICT consulting

Corporate advisory

137

Contracts

0.29

0.25

FY2019FY2020

Manufacturing
18%

Construction/
real estate
27%

Services
42%

FY2021

FY2022￥1.0
bil. and
over
￥0.5~
14%
1.0 bil.
Under
17%￥0.3 bil.
52%￥0.3~0.5 bil.
17%

39
39

Basic Policy II: Fortify Existing Business (Corporate ⑤ 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

3/2019Trainee fromMusashino

London BranchTrainee fromMusashino

2%

Hong Kong Branch
Singapore Representative OfficeOcenia4%

Trainee from
Yokohama

Date

Alliance

Country

Related overseas office

12/2022

Yokohama

Singapore

Chiba Hong Kong Branch, Yokohama Singapore
Branch3/2023

TSUBASAU.S.

Chiba NY Branch, Chugoku Bank domestic branch

35
31
28
25
Chiba/
Yokohama

13(Cases)15

Chiba/
Musashino

8
3

5

1H
2H
FY20183/2023 USD $5,336 million
Latin America/
Middle East
1%

Ocenia3%
Asia
11%

North America
44%

Europe28%

1H
2H
FY2020

1H
2H
FY2021

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

1H
2H
FY2022

North America
54%

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

BBB－
3％

ECA, other
1%

ECA, other1%
AA and above
31%

A
31%

Unrated(majority profile)10%

AA and above
36%

BBB
25%

BBB－
2％

TSUBASA

1H
2H
FY2019

Guaranteed byinternationalorganizations andexport credit
agencies 3%

Europe31%

Total co-financing with partner banks (overseas operations)

21

Guaranteed byinternationalorganizations andexport credit
agencies 5%

Asia
14%

* Trainee program was partiallyhalted due to COVID-19

FY2022 2H
major
initiatives

USD $4,803 million

Latin America/
Middle East

New York Branch
Shanghai Representative Office

Bangkok Representative Office*Includes credit to non-Japanese companies in domestic
branches and market divisions

A
28%*S&P/Moody’s lower rating

40
40

Basic Policy II: Fortify Existing Business (Corporate ⑥ Real Estate Financing)
Real estate rental loans increased steadily while credit risk remained low
Real estate rental loan balance
2,180.9

2,250.2

2,369.5

2,453.3

2,515.3*Default: rank-down to “potential bankrupt” or below (case number basis)

2.68%

2,034.7(Billion yen)
1,635.9
1,496.4

3/14

1,805.1

3/15

3/23

Default rate*

2,629.9

2.16%

3/17

3/18

3/19

3/20

3/21

3/22

3/23

Non-real
0.90% estate
rental

0.72%

0.62%
Overall

By borrower type

0.11%

By use

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

Real
estaterental

3/23〔FY2022 / case number basis〕
Small
22%

Real estate rental businessbalance/ratio of modified loans

Landlord, etc.
33%
Residential
91%

Office worker
15%

Real estate rental business
Balance/ratio of overdue loans

Commercial
9%
0.37％
0.26％

6.3％

0.28%

0.25％

Manager
30%

0.17％

0.23%
0.16%

Occupancy Average for Bank-financed properties: 95.6%
rate(Residential 95.7% Commercial 94.7%)

1.6％(Billion yen)

*National average: 83.3%

DSCR

99.4

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

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

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

3/15

3/17

3/19

3/21

3/23

0.14%

6.0

Commercial

0.00%

5.5
4.6

46.1

Average for Bank-financed properties:147％

DSCR: Single property balance

9.0(Billion yen)
5.5

0.20％

0.19%

0.8

0.6

0.8

0.6

3/18

3/19

3/20

3/21

Overall

0.15％

Overall

4.6

Commercial

1.3

0.0
3/22

3/23

41
41

Basic Policy III: Creating New Value ①
Grow towards the next stage for the new businesses developed in the previous Mid-term Plan
Chibagin Market

On Ad
NEW

STEP 1
Local
Production

Creation/cultivation of
new products/services

Ongoingpurchase

Neutrality

On Ad“Trigger regional revitalization” within Chiba

Launch of corporate service contracts
Contribute to financial wellness through financial
information provided to employees

Branding

What is “financial wellness”?

Establishment of new business model that stands
upstream of commercial distribution
Uncover hidden needs
through datautilization/personalization

STEP 2
Life
EventsCompletedonlineSpecialized
adviceChibagn Market

Financial wellness refers not only to physical andmental health, but is a state of being wherein aperson can fully meet current and ongoing
financial obligations, can feel secure in theirfinancial future, and is able to make choicesthat allow them to enjoy life.

High-level solutions via real estate funds
Realtors

Overview ① ~CRE strategy~

House purchaseconsulting service

Chibagin Leasing

Property purchase(Liquidation/lease-back)Chibagn Market

Living(Major areas)
Health/nursing

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

Developed/effectively used by business partners

Education

Supportlarge-scale
investment

Stabilize
real estate
ownership

Overview ② ~Development support~
Provide support

STEP ３Compressinterestbearing debt

Sale priceReal estate held by borrowers

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

Raise growth
capitalSecure/supplement funding capacity

Food retailers

4242Basic Policy III: Creating New Value ②
Continue to enter new business areas in addition to advertising and energy production and expand non-financial services/diversify revenue
Launch of advertising businessNEW

Anti-money laundering

Energy production

Advertising medium
Use bank and other company channels to increase opportunities tobroadcast highly-reliable ads
Broadcast ads

4/28/2023 Wholly-owned subsidiary NEW
Himawari Green Energy Co., Ltd. establishedPower generation
management
Operation/management of power plants

Sale of energy
Sell and generate energy in-house

ChibaginGroup

EnergyretailersBank ad medium examples
Other
Consulting service
Environmental value referral

Regionalcustomers

Metaverse

Sophisticated and efficient
ALM operations
Sharing/development of know-how
based on regulatory standards

Communalization
Consider future businessconsolidation (outsourcing) using
joint systems

BaaS
Provide financial
and other functions

Advertising consulting

Business
operators

Advertising consulting support for business issues related tocustomer attraction and name recognition
IssuesConsulting

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

Loans
Accumulate know-how through management of
events for job candidates and local governments

Begin considering commercialization
with business partners

CashlessplatformBusiness
operator
customers
43
43

Value Creation Bases

44
44

Base I: DX Strategy ① Overview
Evolution of our customer-focused business model

Creating the optimal
customer experience
Evolution of the customer-focusedbusiness model

Retail Customer Needs

Regional Ecosystem Strategy

Personalization Strategy

Evolution of Financial Operations

PaperlessSeal-less

Develop digital
infrastructure toconnect to customers

Creation of Non-financial Operations

Platform

App
Corporate portal

Develop infrastructure formore efficient banking
operations

Corporate Customer Needs

Regional
suppliers
BaaS
New technology

Support operations throughplatforms and new technology

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Base I: DX Strategy ② Chibagin App
Developing an app that can solve any problem
Number of app registrations/penetration rate

Feature implementation/future plans
Expand functionality

Increase customer contact points

Familiar financial services via the app

Personalization

Digitalize branch transactions

Transaction/asset visualization, proposals tailored to customers

Barcode payments

Payments/transfers

Asset/contract information listing

Household accounting
review/LP simulation

Balance/transaction statements

Timed deposits, cancelations, account openings

Materials/service recommendations

Advertising broadcast

Notifications, eKYC, ongoing customer management

Fulfillment of financial services
Convenient and safe services
Loan repayment schedule

In-app loans

Trust inquiry

Trust account openings

Early repayment of residential loans

Auto-transfer service

Fund wrap/securities account balance

Foreign currency deposits/insurance

Connect to life
Collaboration with other services
Google Pay/Apple Pay

Unified local tax QR

API collaboration(Thousand)

24.8%
17.8%

3/2022

Simple operation, exciting designAppregistrations

3/2026(plan)

Retail: # of money transfers/transfers toother banks through the Bank app

Intuitive design

Seamless authentication connection with other channels

Communication

App usage
rate fortransfers toother banks

27.3%

FY2022 2H
Transfer fees

14.0%

Consulting anytime, anywhere
Smooth communication/coordination with in-person transactions
Branch appointments

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

Comfortable smartphone experience

Customization

713

514

3/2021

Improved UI/UX

1,500

10.6%

305

Online account openings/transfers

50.0%

App penetration rate*

Chat/online consulting, etc.

329
(10,000)

294

Transfers

Year-on-year+5.5%

Collaboration with local governments, other industries, My Number system

Solid line: actual results

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

点線：将来構想
Dottedline: future goal

FY2021 2H

FY2022 2H

46
46

Base I: 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)

Try the portal
1Complete transactions through theportal without needing to visit a branch

Deliver bank services

２

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

３

Provide solutions

Aim to be a familiar bankonline and in-person

Consult/apply

Solid line: actual results

Proper solutions for your company’s issues

Dotted line: future goal

In-person transactions

Concierge

Deposits

Information delivery

Complete transaction management online

Chibagin manual

Account balance/transaction statements

Transaction trends (graph)

Compare account info

Display accounts ofother banks

Information dispatch

Advanced operations
・Improve existing customer relationships
・Strengthen consulting capability

Borrowing reference

Repayment schedule

Account borrowing/
repayment receipt

Digitalization of
documents

FOREX
Smooth collaboration with Web-EB

CO2 emissions measurement

70.0%

41.9%

(Thousand)

27.1%

In-person transactions
8.4%

New services
Digital contact points
Improve collaboration with ext. services
Online financing

Personalizedrecommendations

60.0

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

34.8

Number ofcorporate portal
2
registrations*

3/20233/2026(plan)

26.3
17.4

Balance certificate
issuance

Introduce to all customers

1

52.9%

Virtual transactions

Notifications, etc.
Notification item change

Portal penetration rate*

Seminar information

Group solutions showcase

FinancingNumber of portal registrations/penetration rate

Utilize contact points

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

Marketing

Improve operational productivity
Transaction channels suitable for customers

5.0
9/2021

3/20229/2022*1 Number of corporate portal registrations ÷
number of individual active customers*2 Going forward, this result will now exclude accounts that have nohistory of logging in (updated retroactively)

47
47

Base III: Alliances
Evolution of our Alliance Strategy
TSUBASA Alliance

Chiba-Musashino Alliance
A new model for regionalbank alliances

Alliance that spans
across JapanA new form of regional banking◼ Large-scale collaboration between the
top regional banks in each area
◼ 96 trillion yen in total assets (3/2022)◼ Accelerate communalization of each area
◼ Expand presence in the Tokyo Metropolitan area

Total

Total

A platform for each measure￥14.3 bil.

￥15.0 bil.

Platform for each alliance measure to further
deepen collaboration

Phase 1 results(Launch~3/2021)

Phase 2 plan
(4/2021~3/2026)

Strengthen collaboration with otherbanks/industries

Chiba-Yokohama Partnership

Expand alliance and strengthen
collaboration with other banks/industries

Collaboration between top
regional banks with Tokyo as
the base of operations

Top-line growth

×××

Reduced costs

Larger presence

Development of know-how between
top regional banks◼ Expand Tokyo market-share through a partnership that
capitalizes on economies of scale◼ Offer high value-added financial services￥1.5 bil. ￥8.4 bil.
3/2020

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

3/20215-yearplan total
￥20.0
bil.
￥26.8 bil.
￥16.6 bil.
(as of 3/2024)
3/2022

3/20233/202648
48

Base III: Collaborating with Other Industries
Improve ability to provide value as an organization through collaborations with a wide-range of other industries
Sony Bank

Onionnews Inc.
NEW

Deepen, develop
expansion

Mutual provision of digital technology, products, and services
Utilize new digital technologies
Aim to improve convenience of digital channels
by officially implementing “Mado”, a digital presentation system◼ Business operations･Ads ･Digital marketing･D2C ･Regional revitalization, etc.
◼ Chiba Bank 20% investment(2023/5/15) ⇒ Affiliate company

Chibagin Group

Foreign currency
services

Asset management, trusts,
inheritance• 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.

Chibagin
Joint-research regarding use of the blockchain
Security-tokenization and cross-selling of Bank bonds

Joint-research on the development of a sustainable society
Mutual introduction of crowd-funding for socially significant initiatives
Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

computer 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* Bank operations in black letters, Group companies in white letters

Regional
revitalization
business

Joint-research on the DX of housing loans
Improve AI credit check models

Onionnews Inc.

Digitalstrategy

Cashless operations

Joint-research on the use of technology

Expected synergy

Advertising/digitalmarketing businessMutual provision of products and services that make up each bank’s strengths

Events organized by the company

49
49

Base IV: Human Capital ①

HR Development Policy / HR Strategy

Developing an organization that can produce new societal value through “2 Human Resources Strategies”
Human Resources Development Policy“Become someone who
keeps fighting for the customer”
For the sake of customers, the region, friends, family, and oneself

Think things throughUtilize your own
strengths

Gain more
supporters

Human Resources Strategy

Development of a “Chiba Bank Group
where people grow”
Important
Strategies① Career development➁ Job satisfaction

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

Creation of an “Organization with highpersonnel engagement”③ Diverse organization④ Unified Groupmanagement⑤ Human Resources
portfolio

5050Base IV: Human Capital ② Expanding Investments in Human Capital
Expand amount invested in human capital as well as number of personnel in-training (investment targets)
Personnel development

Human capital investment total
Wage increases/higher starting salaries

NEW■Wage increases
・Over 5% average increase in annual income when combined with standard pay increases
and higher salary bands (young employees maximum increase of approximately 7%)
・Also raised wages for non-standard employees

Previous Mid-term
Plan result

Current Mid-term
Plan target(4/2020~3/2023)(4/2023~3/2026)

148

280

Second consecutive year
wages increased over 4~5%

■Higher starting salaries
・Entry level monthly salary raised to 25,000 yen(College graduates: 205,000 yen ⇒ 230,000 yen)

Increased research/training expenses
・Strengthen management/supervisory training

Nearly double

・Strengthen DX personnel training
・ Support for self-development , purchase Chibagin Academy training materials

414(Million yen)

173

219

242

Research costs/
qualification incentives,
etc.

+170 million yen
System expenses
Research institute

Investment
per employee(yen)

3/202144,0003/202257,0003/202365,000

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

3/2026
112,000

Equivalent
wage hike rate
1.4%

Corporate sales
Retail sales
DX personnel
External trainee dispatch
Corporate solutions, Credit Unit,
Market, Planning, etc.

Management team

50
50
60
90
30
51
51

Achieving Sustainable Management

52
52

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) "Initiatives to address ESG issues

Environment

SocialGovernance

Chiba Bank Group declaration on SDGs

Regional economy
and community
Contribute to therevitalization of theregional economy andlocal communities

Aging population

Financialservices

Diversity

Environmental
conservation

Support safe and secure
lives for the elderly

Provide financial
services for better life

Promote diversity andwork style reforms

Contribute to theconservation of asustainable environment

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

53
53

History of Initiatives / External Evaluation
Steady sustainability initiatives~2018
Structure,etc.

⚫ 2017
ESG Promotion
Committee established

2019

2020

⚫ Declaration on SDGs
established⚫ Sustainability Policy
established⚫ Integrated report publicated

2021

2022

⚫ SDGs Promotion Officeestablished⚫ Changed the frequency ESG Promotion
Committee (name changed to Sustainability
Promotion Committee starting in FY2023)
meetings from twice to four times a year

⚫ Announcement of endorsementof TCFD recommendations⚫ Loan policy revision⚫ Environmental Policy
established⚫ Disclosure of climatechange information⚫ CO2 emissions targets⚫ Establishment of sustainablefinancial targets⚫ Set CO” emissions targets(Carbon neutral by 2030)⚫ Endorsement of GX League basic concept⚫ Switch to renewable energy for contracted powerSocial⚫ 2015: Talent bank forregional banks⚫ 2016: Donation-typeprivate placement bonds⚫ ESG index investment trust
structuring and selling⚫ Human Rights Policy
established⚫ Collaborative agreementwith food banks etc.

⚫ Introduction of TFT⚫ Introduction of Corporate
Code of Conduct(Revision of Corporate
Philosophy)⚫ TSUBASA Diversity & Inclusion
Declaration established⚫ Establishment of TSUBASA cross-mentor
systemGover-nance⚫ 2015: Management Advisory
Committee is established⚫ 2018: Introduction ofCxO system, Raised outside
director ratio to 1/3 or more

⚫ Policy on Corporate
Governance established⚫ Introduction of restricted stock
remuneration plans⚫ Change in Chairperson for
Nomination, Remuneration, andAdvisory Committee

Enviro-nmentExternal evaluation
CDP score forclimate change
Received "A-"rating, the highest
level for a
Japanese bank

A-

Regional banks
Chiba

B

Concordia FG
Fukuoka FGBCShizuoka
Mebuki FG◆ Global average :「B-」Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

Major banks, etc.
MUFG
Resona HD
SMFG
Mizuho FG
SMTH
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, or advertise The Chiba Bank, Ltd. The
MSCI Index is the exclusive property of MSCI. The names and logos of MSCI and the MSCI Index are trademarks
or service marks of MSCI or its affiliates.

54
54

GX Initiatives ① (Value Creation Base II)Contribute to the sustainable development of the entire Chiba prefecture through regional decarbonization
Chibagin Group Carbon Neutrality
Collaboration with local
governments

Become carbon neutral by March, 2031
*Scope 1 & 2 emissions of the Bank

Expand use ofrenewable energy

Establishment of Himawari
Green Energy Co., Ltd.
ZEB/energy-saving
branches

LED
Installation of
LED lights

Introduction of
hybrid vehicles

Installation of solar
power generators

Develop model for local
generation and consumption ofrenewable energy◼ Comprehensive SDGs
partnership agreements

Contribute to the sustainable
development of Chiba prefecture
through ongoing decarbonization
initiatives throughout the region◼ Increase number ofcompanies registered as
Chiba SDGs Partners◼ Support for areas
advancing decarbonization◼ Promotion of Chiba SDGs
Utilization of network

March, 2031
Chibagin Group
becomes carbon neutral

Support for customers’ decarbonization

Sustainable financing targets

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

2050
Sustainable development of
Chiba prefecture(amount achieved since April, 2019)
Sustainable finance

Environmental finance

Entire prefecture becomescarbon neutral

Carbon-neutrality consulting
Corporate
Customers

RetailCustomers

Target￥2 tri.

◼ Greenhouse gas emission measurement support◼ Solar power generator installation support◼ Sustainable housing support discount◼ Discount SDGs loans

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

￥0.9 tri.

Target￥1.2 tri.
￥0.4 tri.

3/20233/20263/20319/2022

Target￥0.6 tri.

3/2026

Target￥1 tri.

3/2031

55
55

GX Initiatives ② (Value Creation Base II)
Responding to climate change (initiatives related to the TCFD recommendations)
CO2 emissions

Climate change-related risks※Subject to SCOPE1+SCOPE2 associated with own emissions

Approx. 25%
reductioncompared to
FY2013CO2 emissions per unit
(Kg-CO2/㎡)

97.1
77.7

76.9

72.7

72.5

◼ Scenario analysis
Large-scale storm and flood
disasters, etc.

FY2030CO2 emissions
net zero

22,74818,986

18,78319,016(achieve carbon neutrality*)

18,577

To 2050

CO2 emissions (absolute value) (tons-CO2)
FY2015FY2018(tons-CO2)

FY2019FY20202019/3

FY2021
2020/32021/3

2,493

2,425

2,776

SCOPE2

16,395

16,29016,59115,801SCOPE 1・2 Total

18,986

18,78319,016

18,577（Reference）
Business trips

540

540

540

575

Commuting

1,640

1,660

1,590

1,391

Financing*

ー

ー

ー

¥6~7 bil.
Transition to a decarbonized society

Transi-tion
risks

6,315,148

To 2050(mainly listed companies)

Plans to add top-down approach tomeasurements for the FY2023 Annual Report(all borrowers)

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

Damage to real estate collateral by typhoons, torrential rains, and otherwindstorms, as well as a deterioration in business quality of borrower customers:
Increased credit costs (Domestic)

2022/3

2,591

Expand Scope 3 disclosures to Category 15
Begin measurements using a bottom-up
approach starting from the FY2022 Annual Report

2022/7 disclosure

FY2030 (Target)

SCOPE1SCOPE3

Physical
risks

New

※ Assets subject to the analysis areloans, mainly business loans, andinvestments and loans to listedcompanies that have alreadydisclosed or measured theirgreenhouse gas emissions.
Attribution Factor is calculated
based on the Bank's share of totalloans of the analyzed borrowers.
The amount of loans for thisanalysis is equivalent to 30.8% of
the total amount of loans togeneral corporations (excluding
corporations in the real estateleasing industry).

*1

Sea level rise*2

2022/7 disclosure• Steel sector, foreign credits added

Increase in credit costs

Maximum of ¥27 bil.
Ratio of carbon-related assets tototal loans and other assets of the Bank 1.2％ *3Plans to add chemical sector*1 Calculated based on data on building damage in Chiba Prefecture caused by the "Typhoon Faxai" and "Typhoon Hagibis" andsubsequent heavy rains in autumn 2019, and IPCC's RCP2.6 scenario (2°C scenario) and RCP8.5 scenario (4°C scenario).
*2 Calculated based on the IEA SDS scenario.
*3 Total loans, Acceptances and guarantees, foreign exchange, and private placed bond to the energy and utility sectors as of March 31,
2022. However, water supply and renewable energy generation projects are excluded.

56
56

Diversity / Regional Revitalization
Utilization of diverse human resources / initiatives for regional revitalization
Regional revitalization

Promotion of diversity
Numerical targets

Percentage of leadership
positions held by women(No. of persons)
Percentage of employees
taking paid leave
Percentage of men taking
child-care leave

FY2020

FY2021

FY2022

24.4%

27.2%

26.9%

Target in
2026
July

30%

(453)

(523)

(494)

As of April 1, 2022

As of April 3, 2022

70%

72％

77.1%

80%

112.3%

100%

102.9％NEW

Contributing to strengthening the regional
medical infrastructure during COVID■ECMO-car

As of April 1, 2021

112.7%

Cabinet Secretary/Office Award: “Example of a Financial Institution, etc.
6 consecutive years
Providing Funding for Regional Revitalization”

ongoing・Predominately locally-produced vehicles donated to

Chiba University Hospital・Supporting more efficient medical services and operations■Training Center Project・Donated to Chiba Prefecture for use as temporary
medical facility/lodging*Staff with subordinates and staff in equivalent positions, such as branch manager, who are・First time a private facility used for medical purposes in pref.
External Evaluation responsible for organizational management as responsible for operations.

Received Cabinet Office's "Regional Revitalization SDGs Financial Award""Nadeshiko Brand"
selected by METI andTokyo Stock Exchange

Chibagin Securities

6 years running

PlatinumEruboshi acquisition

Well-received regional revitalization initiatives through public-partnerships

First BankTSUBASA cross-mentor system (from 2022/8)

MenteeFemale bank employees at the
department/branch manager anddeputy general manager level

NEW

Matching between
other banks

・Established “Chiba SDGs Promotion Network” with companies/organizations in the pref.
・Support spread of Chiba SDGs Partner Registration System established by Chiba Pref.
・Highly praised for helping expand the base of prefectural companies working on SDGs
Establishment of the
Customers
Chiba SDGs partnerin Chiba
registration system
Prefecture➢ Dissemination, awareness-raising of SDGs joint-support➢ Information sharing/collaboration among network members

MentorDirector class(regardless of gender)

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

Chiba SDGs
Promotion
Network

The Keiyo Bank

Chiba Kogyo Bank+ eight other organizations

57
57

Group Governance (Value Creation Base V)
Achieving unified Group management by improving Group governance
Enhance Group Management Structure

Ratio of cross-shareholdings to consolidated net assets

Newly-established“Group Strategy Division”

25.63%

Promote unified Group management
equivalent to a holding company
structure

Oversee all aspects of Group
companies, including sales andmanagement24.45%
21.95%

21.86%

19.90%(Billion yen)

Ratio of crossshareholdings toconsolidated net
assets(Market value)-2.05%

Group Strategy
DivisionManagement Group

Business Promotion Group

Consolidate risk management,
management resource allocation,and policy measures, etc.

Consolidate
planning/promotion of eachGroup company…
…
…

(All 15 Group companies)

Chibagin Research

Policy measures, etc.

Chibagin Leasing

Management resource allocation

Chibagin Securities

Risk management

Unified Group recruiting

254.6

244.0

Market value-21.3 billion yen

232.5
211.1

203.1

114.1

Unified management ofGroup personnel【As compared toMarch 31, 2022】

113.2

110.5
95.9
82.1

Book value-13.7 billion yen

Fluid transfer of personnel
3/2019Copyright © 2023 The Chiba Bank, Ltd. All Rights Reserved.

3/20203/2021

3/2022

3/202358
58

Appendix

59
59

About Chiba Prefecture
The Chiba Prefecture economic environment is strong

Prefectural
income￥19.2 tri.

Population
6.28 million

Prefectural
gross production￥21.2 tri.

Primary
industryNo. 6 ￥0.1 tri.
nationwide

SecondaryNo. 9
industry nationwide ￥5.0 tri.

No. 6
nationwide

No. 6
nationwide

No. 7
nationwide

Tertiary
industry

No. 6
nationwide ￥15.9 tri.

Sources: Ministry of Internal Affairs and Communications Statistics Bureau, "Population Census" (FY2020);
Cabinet Office, Economic and Social Research Institute, "Prefectural Accounts" (FY2019)

Excess immigration to population growth rate by Prefecture (pre-COVID)* 2020-2022 total excess immigrants ÷ January 2020 Population

Publicly-listed land prices (rate of change pre-COVID)* Rate of change based on publicly-listed land prices as of Jan. 2020

1.2%

Highest rate of increase inTokyo metropolitan area

1.0%

0.8%

Residential+0.8％

Metro avg. +0.1%
Japan avg. +0.1％

Commercial+1.7％

Metro avg. +0.6%
Japan avg. -0.4％

Industrial+8.3％

Metro avg.
Japan avg.

0.6%
0.4%
0.2%
0.0%

Saitama Kanagawa

Tokyo
Chiba
千葉

Fukuoka

Osaka

Shiga

Okinawa

Source: Ministry of Internal Affairs and Communications

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60

+4.9%
+2.8％
60
60

Chiba Prefecture Market Share / Comparison with Other World Banks
Established an overwhelming sales base in Chiba Prefecture / Comparable scale to the largest banks in the world
Loan and deposit balances in Chiba prefecture / share
Source: Finance Journal

Deposits

GDP

27.9%
23.0%

24.3%

25.6%

Chiba
Bank
share

50.9

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

252.5(USD Bil.)

240.0
212.1

42.7

37.9

34.9

163.5

14.2

10.9

9.2

Chiba
Bank

3/20073/2012

Loans
39.1%

3/20173/2022

16.3

5.1

5.6

6.5

3/20123/2017

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

New
Zealand

GreeceChiba Pref.
Pref.

Hungary

127.4

95.4

84.5

7.6
Chiba
Bank

3/2007

118.1
82.2

Total bankdeposits in
Chiba Pref.

(Trillion yen)

Portugal

156.0

Chiba
Bank
share

18.6
14.5

Czech
Republic

Total assets of largest bank in each country/region

41.0%

40.1%

36.6%
13.9

195.8

Total bankdeposits in
Chiba Pref.

(Trillion yen)

8.0

205.1

3/2022

Caixa Geral de
ANZ Bank New National Bank ofCzech
CSOB Caixa Geral ANZ Bank National Bank
Depositos
Zealand
GreeceRepublicNewof Greecede Depositos
Czech
ZealandRepublic

CSOB

Chiba Bank

Chiba
Bank

OPT
Bank
OPT

Bank

Sources:<GDP> Cabinet “Annual Accounts of the Japanese Economy for FY2020 (Flows) Point (released on March 12, 2021)" andOECD "Annual National Accounts Database (as of March 2022)".
< Total assets of the largest domestic banks >The Bankers (2022 edition)61
61

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

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

200

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

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0
62
62

マスタ タイトルの書式設定

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.