The Juroku Financial Group, Inc.
and Consolidated Subsidiaries
Consolidated Financial Statements
for the Year Ended March 31, 2024

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Balance Sheet
March 31, 2024

Millions of Yen
2024
2023
ASSETS:Cash and due from banks (Note 4)
Call loans and bills bought
Trading securities (Notes 5 and 26)
Money held in trust (Note 6)
Securities (Notes 5, 7, 11, 12 and 26)
Loans and bills discounted (Notes 7, 12, 26 and 27)
Foreign exchanges (Notes 7 and 8)
Lease receivables and investments in leases (Notes 7 and25)
Other assets (Notes 7, 9, 12, 26 and 28)
Premises and equipment (Note 10)
Goodwill
Intangible assets
Asset for retirement benefits for employees (Note 16)
Deferred tax assets (Note 24)
Customers' liabilities for acceptances andguarantees (Notes 7 and 11)
Allowance for loan losses (Notes 3 and 26)
Total Assets

Thousands of
U.S. Dollars(Note 1)2024

¥ 973,943
9
13,225
1,473,330
4,838,415
6,225¥ 751,947
35,00084
11,312
1,464,507
4,695,448
7,027$ 6,432,488
59
87,3469,730,731
31,955,716
41,11455,455
95,48757,558
2,741
4,673
23,822318

53,512
103,728
57,3703,193
4,099
13,195214366,258
630,652
380,147
18,10330,863
157,334
2,100

13,056(23,218)

14,110(24,189 )

86,229(153,345)¥ 7,535,039¥ 7,190,557$ 49,765,795-2(Continued)

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Balance Sheet
March 31, 2024

Millions of Yen
2024
2023
LIABILITIES AND EQUITY:
Liabilities:
Deposits (Notes 12, 13 and 26)
Negotiable certificates of deposit (Note 26)
Payables under repurchase agreements(Notes 12 and 26)
Payables under securities lending transactions(Note 12)
Borrowed money (Notes 12, 14 and 26)
Foreign exchanges (Note 8)
Borrowed money from trust account(Note 12)
Other liabilities (Notes 15, 17, 25, 26 and 28)
Liability for retirement benefits for employees(Note 16)
Provision required under the Special Act
Deferred tax liabilities (Note 24)
Deferred tax liabilities for land revaluation surplus
Acceptances and guarantees (Note 11)

Thousands of
U.S. Dollars(Note 1)2024

¥ 6,388,735
13,000¥ 6,266,981
13,000$ 42,194,934
85,86096,567

97,835

637,785

122,476
346,327
1,110

329,501
1,725

808,9032,287,346
7,331

169
63,17338
55,581

1,116
417,2315,572
1727,647
6,401
13,055

5,933
11
6,880
6,401
14,11036,801
112
182,597
42,27686,2237,084,249

6,797,996

46,788,515

36,00060,961
266,177

36,00061,818251,974

237,765
402,622
1,757,988(3,561)(3,068 )(23,519)

65,2142,275
12,453
7,151
446,670
4,120

28,882
117
12,453548
388,724
3,837

430,712
15,02582,24747,2292,950,069
27,211

Total Equity

450,790392,561

2,977,280

Total Liabilities and Equity¥ 7,535,039¥ 7,190,557$ 49,765,795

Total Liabilities
Commitments and Contingent Liabilities (Note 27)
Equity (Notes 18, 19 and 32):
Common stock: authorized, 80,000,000 sharesin 2024 and 2023; issued, 37,924,134 sharesin 2024 and 2023
Capital surplus
Retained earnings
Treasury stock—at cost, 1,429,087 shares in 2024
and 1,343,278 shares in 2023
Accumulated other comprehensive income:Unrealized gain on available-for-sale securities(Note 5)
Deferred gain on derivatives under hedge accounting
Land revaluation surplus
Defined retirement benefit plans (Note 16)
Total
Noncontrolling interests

See notes to consolidated financial statements.

-3-

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Income
Year Ended March 31, 2024

Millions of Yen
2024
2023

Thousands of
U.S. Dollars(Note 1)
2024

Income:Interest on:
Loans and discounts
Securities
Other
Trust fees
Fees and commissions
Other operating income (Note 20)
Other income (Note 21)¥ 38,514
18,9292,067
424,72730,303
14,292¥ 38,150
13,9471,800
124,321
29,851
4,615$ 254,369
125,018
13,652
26
163,312200,139
94,392

Total income (Note 31)

128,836

112,685

850,908

Expenses:
Interest on:
Deposits
Borrowings and re-discounts
Payables under repurchase agreements
Other
Fees and commissions
Other operating expenses (Note 5)
General and administrative expenses (Note 22)
Allowance for loan losses
Impairment loss on long-lived assets
Other expenses (Note 23)

152
399
6,043
23
6,136
42,69644,072
708
12
793

165
277
2,308
19
5,574
32,89642,239
1,482
150
579

1,004
2,635
39,911
152
40,526
281,989
291,077
4,676
79
5,238

Total expenses

101,034

85,689667,287

Income before Income Taxes

27,802

26,996

183,621

Income Taxes (Note 24):
Current
Deferred

6,870
1,412

7,058
1,178

45,374
9,326

8,282

8,236

54,70019,52018,760128,921

202

130

1,334

¥ 19,318¥ 18,630$ 127,587

Total Income Taxes
Net Income
Net Income Attributable to Noncontrolling Interests
Net Income Attributable to Owners of the Parent

Yen
Per Share of Common Stock (Notes 2.t and 30):
Basic net income
Diluted net income
Cash dividends applicable to the year—common stock
See notes to consolidated financial statements.
-4-¥ 530.55
160.00U.S. Dollars¥505.78505.44130.00$3.50
1.06

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Comprehensive Income
Year Ended March 31, 2024

Millions of Yen
2024
2023
Net income

Thousands of
U.S. Dollars(Note 1)2024

¥ 19,520¥ 18,760$ 128,921

36,332
2,158
6,604(20,306 )117(2,793 )239,958
14,253
43,61645,094(22,982 )297,827

Comprehensive Income (Loss)¥ 64,614¥ (4,222 )$ 426,748

Total Comprehensive Income (Loss)
Attributable to:
Owners of the parent
Noncontrolling interests¥ 64,412
202¥ (4,352 )130$ 425,414
1,334

Other Comprehensive Income (Loss) (Note 29):
Unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on derivatives under hedge accounting
Defined retirement benefit plans
Total other comprehensive income (loss)

See notes to consolidated financial statements.

-5-

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2024
Thousands

Balance at April 1, 2022
Net income attributable toowners of the parent
Cash dividends, ¥130.00 per
share of common stock
Transfer of land revaluation
surplusPurchase of treasury stock
Disposal of treasury stock
Net change in the year
Balance at April 1, 2023
Net income attributable toowners of the parent
Cash dividends, ¥140.00 per
share of common stock
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
Balance at March 31, 2024

Outstanding
Number of
Shares ofCommonStockCommonStockCapitalSurplus

Stock
Acquisition
RightsRetained
Earnings

Treasury
Stock

Millions of Yen
Accumulated Other Comprehensive Income
Unrealized
DeferredGain onGain onAvailableDerivatives
Land
Definedfor-sale
under Hedge Revaluation
Retirement
Securities
Accounting
SurplusBenefit Plans

36,921¥36,000¥61,807¥180¥238,135¥(2,221 )¥49,189¥-¥12,468¥3,341¥ 61,818-(4,807 )132

16(1,115 )279(23,046 )¥ 3,837¥ 392,561(20,307 )

117

(15 )

(2,793 )16(1,115 )279(23,178 )¥ 251,974¥ (3,068 )¥ 28,882¥ 117¥ 12,453¥ 548¥ 388,724

19,31819,318

6,603(5,115 )(1,429 )79
45,093283(5,115 )(1,429 )79
45,376¥ 7,151¥ 446,670¥ 4,120¥ 450,790(5,115)36,495(1,429)936(857)¥ 36,000¥ 60,961¥-¥ 402,604(4,807 )

19,318(462 )
376¥3,705(4,807 )(1,115 )268¥¥398,899

18,63011¥ 36,000

Total
Equity18,630(180)
36,581

Noncontrolling
Interests

18,63016(461 )
121

Total¥ 266,177¥ (3,561 )-6-36,332

2,158¥ 65,214¥2,275¥ 12,453

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Changes in Equity
Year Ended March 31, 2024

Balance at April 1, 2023

CommonStockCapitalSurplus$ 237,765$ 408,282

Net income attributable to ownersof the parent
Cash dividends, $0.92 per shareof common stock
Purchase of treasury stock
Disposal of treasury stock
Net change in the year
Balance at March 31, 2024

Stock
Acquisition
Rights$-Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income
Unrealized
DeferredGain onGain onDefinedAvailableDerivatives
Land
Retirement
Treasury
for-sale
under Hedge Revaluation
Benefit
Stock
Securities
Accounting
Surplus
Plans

Retained
Earnings$ 1,664,183$ (20,263 )$190,754$773$ 82,247$

3,619

127,587$ 237,765$ 402,622$-$ 1,757,988$ (23,519 )See notes to consolidated financial statements.

-7-

14,252$ 430,712$15,025$ 82,247$ 25,342

Total
Equity$ 2,592,702

127,587

43,610(33,782 )(9,438 )522
297,820

1,869(33,782 )(9,438 )522
299,689$ 47,229$ 2,950,069$ 27,211$ 2,977,280(9,438 )6,182
239,958$ 2,567,360

Noncontrolling
Interests

127,587(33,782 )(5,660 )Total

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2024

Millions of Yen
2024
2023
OPERATING ACTIVITIES:
Income before income taxes
Adjustments for:
Income taxes—paid
Income taxes—refund
Depreciation
Impairment loss on long-lived assets
Interest income recognized in consolidated statements ofincomeInterest expense recognized in consolidated statements ofincomeNet loss on securities
Unrealized gain on derivatives
Net decrease in allowance for loan losses
Net increase in asset for retirement benefits for
employees
Net decrease in liability for retirement benefits for
employees
Net increase in provision required under the Special Act
Net increase in loans
Net increase in deposits
Net decrease in negotiable certificates of deposit
Net increase (decrease) in borrowed money (excluding
subordinated loans)
Net (increase) decrease in due from banks (excluding
cash equivalents)
Net (decrease) increase in call loans and others
Net decrease in call money and others
Net (decrease) increase in money held in trust
Net increase (decrease) in payables under securities
lending transactions
Net (decrease) increase in lease receivables andinvestments in leases
Net increase in borrowed money from trust accountInterest income—cash basis
Interest expense—cash basis
Other—net
Total adjustments
Net cash provided by (used in) operating
activities— (Forward)-8-¥

27,802¥Thousands of
U.S. Dollars(Note 1)
2024

26,996$ 183,621(7,169)
1,238
3,275
12

(7,915)
940
3,038
150

(47,348)
8,176
21,63079(59,511)(53,897)(393,045)

6,616
949
(6,047)
(972)

2,769
4,148
(959)
(1,620)43,696
6,268(39,938)(6,419)(1,434)(3,027)(9,471)(130)
6(142,967)
121,754-(174)
3(173,623)
41,689(1,000)(859)
40(944,238)
804,135-

16,825(1,076,296)

111,122(1,106)35,000(1,267)(1,913)440(35,000)(35,913)300(7,304)
231,160(8,368)(12,635)

122,476(87,538)

808,903(1,943)
131
59,071(6,526)(7,401)
128,967

1,032
38
54,232(2,697)(25,324)(1,396,204)(12,833)
865
390,139(43,102)(48,880)
851,773)¥ 156,769¥(1,369,208 )$ 1,035,394

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Consolidated Statement of Cash Flows
Year Ended March 31, 2024
Thousands of
U.S. Dollars(Note 1)
2024

Millions of Yen
2024
2023
Net cash provided by (used in) operating activities—(Forward)¥

INVESTING ACTIVITIES:
Purchases of securities
Proceeds from sales of securities
Proceeds from maturities of securities
Purchases of premises and equipment
Purchases of intangible assets
Proceeds from sales of premises and equipment
Other—net

156,769¥ (1,369,208 ) $ 1,035,394(217,174)
205,657
86,328(2,082)(2,166)133(38)(313,959 )
236,427
71,868(1,003 )(1,568 )121(70 )(1,434,344)
1,358,279
570,160(13,751)(14,305)878(250)

70,658(8,184 )466,667

0(1,429)(5,115)0(1,115 )(4,807 )0(9,438)(33,782)(6,544)(5,922 )(43,220)8

552

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS

220,891(1,383,309 )1,458,893

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

747,378

2,130,687

4,936,121

747,378$ 6,395,014

Net cash provided by (used in) investing
activities
FINANCING ACTIVITIES:
Proceeds from sales of treasury stock
Acquisition of treasury stock
Dividends paid
Net cash used in financing activities
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS
ON CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, END OF YEAR (Note 4)

See notes to consolidated financial statements.

-9-¥968,269¥

The Juroku Financial Group, Inc. and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Year Ended March 31, 2024

1. BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting
regulations and the Enforcement Regulation for the Banking Law, and in accordance with accounting
principles generally accepted in Japan (Japanese GAAP), which are different in certain respects as tothe application and disclosure requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements
have been made to the consolidated financial statements issued domestically in order to present themin a form that is more familiar to readers outside Japan.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which
The Juroku Financial Group, Inc. (the "Company") is incorporated and operates. The translations ofJapanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers
outside Japan and have been made at the rate of ¥151.41 to $1, the approximate rate of exchange at
March 31, 2024. Such translations should not be construed as representations that the Japanese yenamounts could be converted into U.S. dollars at that or any other rate.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation
The consolidated financial statements as of March 31, 2024, include the accounts of the Company
and its 11 significant subsidiaries, including Juroku Bank, Ltd.; Juroku Research Institute Co., Ltd.;
Juroku Card Co., Ltd.; Juroku Lease Co., Ltd.; Juroku Densan Digital Service Co., Ltd.;NOBUNAGA Capital Village Co., Ltd.; Juroku Business Service Co., Ltd.; Juroku Credit Guarantee
Co., Ltd.; Juroku Tokai Tokyo Securities Co., Ltd. ("Juroku TT Securities"); Kanda Machi OkoshiCo., Ltd. and NOBUNAGA Succession Inc. (together, the "Group").
Due to the establishment of NOBUNAGA Succession Inc., it is included in the scope of
consolidation from the fiscal year ended March 31, 2024.
Under the control concept, those companies in which the Company, directly or indirectly, is able
to exercise control over operations are fully consolidated.
Investments in 9 unconsolidated subsidiaries are stated at cost. If the equity method of
accounting had been applied to the investments in these companies, the effect on theaccompanying consolidated financial statements would not be material.
The number of other companies that were not made affiliates even though the Company owned
20% or more but not more than 50% of the voting rights of such other companies on its own
account is one. Such companies are not considered to be affiliates because a non-consolidated
subsidiary that is engaged in investment business, etc. owns shares as part of business
transaction for the purpose of acquiring capital gains by investment and fostering, not for the
purpose of making them subsidiaries.
The excess of the cost of acquisition over the fair value of the net assets of an acquired subsidiaryat the date of acquisition is being amortized over a period of 20 years.
All significant intercompany balances and transactions have been eliminated in consolidation. All
material unrealized profits included in assets resulting from transactions within the Group havebeen eliminated in consolidation.
- 10 -

The balance sheet date for all consolidated subsidiaries is the end of March for each year, which isconsistent with the balance sheet date of the Group.
b.

Business Combinations
Business combinations are accounted for using the purchase method. Acquisition-related costs,
such as advisory fees or professional fees, are accounted for as expenses in the periods in which
the costs are incurred. If the initial accounting for a business combination is incomplete by theend of the reporting period in which the business combination occurs, an acquirer shall report inits financial statements provisional amounts for the items for which the accounting is incomplete.
During the measurement period, which shall not exceed one year from the acquisition, theacquirer shall retrospectively adjust the provisional amounts recognized at the acquisition date toreflect new information obtained about facts and circumstances that existed as of the acquisition
date and that would have affected the measurement of the amounts recognized as of that date.
Such adjustments shall be recognized as if the accounting for the business combination had
been completed at the acquisition date. A parent's ownership interest in a subsidiary mightchange if the parent purchases or sells ownership interests in its subsidiary. The carrying amountof noncontrolling interests is adjusted to reflect the change in the parent's ownership interest in its
subsidiary while the parent retains its controlling interest in its subsidiary. Any difference between
the fair value of the consideration received or paid and the amount by which the noncontrollinginterests are adjusted is accounted for as capital surplus as long as the parent retains control
over its subsidiary.

c.

Cash and Cash Equivalents
For the purpose of the consolidated statement of cash flows, cash and cash equivalents represent
cash and amounts due from the Bank of Japan.

d.

Trading Securities
Trading securities are stated at fair value and the related unrealized gains and losses are includedin earnings. The cost of trading securities sold is determined based on the moving-averagemethod.

e.

Securities
Securities other than trading securities are classified and accounted for, depending on
management's intent, as follows: (1) held-to-maturity debt securities, which are expected to beheld to maturity with the positive intent and ability to hold to maturity, are reported at amortizedcost and (2) available-for-sale securities, which are not classified as held-to-maturity, arereported at fair value with unrealized gains and losses, net of applicable taxes, and are reported
in a separate component of equity. Non-marketable available-for-sale securities are stated atcost determined by the moving-average method.
For declines in fair value that are not recoverable, securities are reduced to net realizable value
by a charge to income.
Securities included in money held in trust for trading purposes are stated at fair value, and therelated unrealized gains and losses are included in earnings. Securities included in money heldin trust for other purposes are accounted for by the same method as the above(2) available-for-sale securities.

f.

Premises and Equipment
Premises and equipment are stated at cost less accumulated depreciation. Depreciation ofpremises and equipment of the Company, except for leased assets, is computed using thedeclining-balance method over the estimated useful lives of the assets.
The range of useful lives is principally from 15 to 50 years for buildings and from 4 to 20 years forother premises and equipment.
Depreciation of lease assets from finance lease transactions that do not deem to transfer
ownership of the leased property to the lessee is computed using the straight-line method overthe leasing period. Residual values of lease assets are the guaranteed values determined in thelease contracts or zero for assets without such guaranteed value.
- 11 -

Under certain conditions, such as exchanges of premises and equipment for similar kinds andsales and purchases resulting from expropriation, Japanese tax laws permit companies to defer
the profit arising from such transactions by reducing the cost of the assets acquired or byproviding a special reserve in the equity section. The deferred gain on premises and equipment
resulting from the reduction of the cost of the assets acquired, which is taxable for tax purposesin the future, was ¥983 million ($6,492 thousand) and ¥983 million as of March 31, 2024 and2023, respectively.
g.

Long-Lived Assets
The Group reviews its long-lived assets for impairment whenever events or changes incircumstances indicate the carrying amount of an asset or asset group may not be recoverable.
An impairment loss is recognized if the carrying amount of an asset or asset group exceeds thesum of the undiscounted future cash flows expected to result from the continued use andeventual disposition of the asset or asset group. The impairment loss would be measured as theamount by which the carrying amount of the asset exceeds its recoverable amount, which is thehigher of the discounted cash flows from the continued use and eventual disposition of the asset
or the net selling price at disposition.

h.

Land Revaluation
Under the "Law of Land Revaluation," the Company elected a one-time revaluation of its
consolidated subsidiary’s land operating as Bank to a value based on real estate appraisal
information as of March 31, 1998.
The resulting land revaluation surplus represents unrealized appreciation of land and is stated,
net of income taxes, as a component of equity. There was no effect on the consolidated
statement of income. Continuous readjustment is not permitted unless the land value
subsequently declines significantly, such that the amount of the decline in value should be
removed from the land revaluation surplus account and related deferred tax liabilities.
The carrying amount of the land after the above one-time revaluation exceeded the market valueby ¥11,507 million ($75,999 thousand) and ¥12,595 million as of March 31, 2024 and 2023,
respectively.

i.

Intangible Assets
Amortization of intangible assets is calculated using the straight-line method.
Amortization cost of software for internal use is calculated using the straight-line method over theestimated useful life, principally, five years.

j.

Allowance for Loan Losses
The Company’s consolidated subsidiaries implemented a self-assessment system for their asset
quality. The quality of all loans is assessed by the related lending division with a subsequent audit
by the asset audit division in accordance with the Company's policies and rules for
self-assessment of asset quality.
The Company has established a credit rating system under which the customers are classified into
five categories such as “normal,” “caution,” “possible bankruptcy,” “virtual bankruptcy” and “legal
bankruptcy.” The credit rating system is used for the self-assessment of asset quality.
With respect to loans to customers who are likely to become bankrupt or to be closely monitored
and caution loans with equivalent credit risk, which are classified within normal and caution loans(hereinafter, “loans to customers who are likely to become bankrupt or to be closely monitored,
etc.”) the allowance for loan losses is calculated based on the projected future losses for thefollowing three years, whilst for other loans, for the following one year. The projected future losses
are calculated by group (i.e., residential loans and non-residential loans) for loans to customers
who are likely to become bankrupt or to be closely monitored, etc. and other loans based on theloss ratios, which are based on the average of actual past loss ratios for the past three years andone year, respectively. For loans such as possible bankruptcy, the allowance for loan losses iscalculated based on an amount deemed necessary to cover possible losses on loans considering
the customer's solvency and other factors after the estimated fair value of the collateral real estate- 12 -

or guaranteed amount has been deducted. For loans such as virtual bankruptcy or legal
bankruptcy, the allowance for loan losses is calculated based upon the loan amount after theestimated fair value of the collateral real estate or guaranteed amount has been deducted.
For loans to possible bankruptcy customers and customers who are likely to become bankrupt or
to be closely monitored, the discounted cash flow method is applied to calculate the loss provision.
In these circumstances, the reserve is determined as the difference between the book value of theloan and the present value of future cash flows, which are discounted using the contractual interest
rate in the case that future cash flows of the principal and interest can be reasonably estimated.
k.

Liability for Retirement Benefits
The Company has a contributory funded defined benefit pension plan, lump-sum payment
severance plan, and defined contribution pension plan for employees, and certain subsidiaries
have lump-sum payment severance plans for employees and apply the simplified method to state
the liability based on the amount that should be paid if employees retired at the consolidatedbalance sheet date.
The liability for retirement benefits is based on projected benefit obligations and plan assets at
the end of the fiscal year. The projected benefit obligations are attributed to periods on a benefit
formula basis. Past service costs are recognized in profit or loss as incurred over three years
within the expected average remaining service period of the employees. Actuarial gains andlosses that are yet to be recognized in profit or loss are recognized within equity (accumulated
other comprehensive income) after adjusting for tax effects and are recognized in profit or loss
over 10 years, no longer than the expected average remaining service period of the employees
starting in the fiscal year following the occurrence of such differences.
Retirement benefits to directors and Audit & Supervisory Board members of consolidated
subsidiaries are provided at the amount that would be required if all directors and Audit &Supervisory Board members retired at the consolidated balance sheet date based on internal
policies.

l.

Stock Options
The cost of stock options is measured based on fair value on the date of grant and is recognized
as compensation expense over the vesting period as consideration for receiving goods orservices. In the consolidated balance sheet, the stock options are presented as stock acquisitionrights as a separate component of equity until exercised.

m. Leases
In regard to finance leases, sales and cost of sales are recognized when lease payments arereceived.
All other leases are accounted for as operating leases.
n.

Provision for Losses from Reimbursement of Inactive Accounts
The provision for losses from reimbursement of inactive accounts, which are derecognized asliabilities under certain conditions, is provided for possible losses on future claims of withdrawal
based on historical reimbursement experience.

o.

Provision for Contingent Losses
The Company provides a provision for contingent losses not covered by other provisions in an
amount deemed necessary based on estimated losses in the future.

p.

Provision Required under the Special Act
The provision required under the Special Act is a financial instruments transaction liability reservefor consolidated subsidiaries engaged in financial instruments business and is provided toprepare for losses arising from operational incidents incurred in relation to trading and othersecurities transactions. The amount of the provision is calculated pursuant to the provisions ofArticle 46-5 of the Financial Instruments and Exchange Act and Article 175 of the Cabinet Office
Order on Financial Instruments Business.
- 13 -

q.

Income Taxes
The provision for current income taxes is computed based on the pretax income included in the
consolidated statement of income. The asset and liability approach is used to recognize deferred
tax assets and liabilities for the expected future tax consequences of temporary differences
between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes aremeasured by applying currently enacted income tax rates to the temporary differences.

r.

Foreign Currency Transactions
Foreign currency assets and liabilities of the Group are translated into yen equivalents at theexchange rates prevailing at the fiscal year end.

s.

Derivatives and Hedging Activities
The Company uses a variety of derivative financial instruments.
Derivative financial instruments and foreign currency transactions are classified and accounted
for as follows: (1) all derivatives are recognized as either assets or liabilities and measured at fairvalue, and gains or losses on the derivative transactions are recognized in the consolidated
statement of income, and (2) for derivatives used for hedging purposes, if the derivatives qualify
for hedge accounting because of high correlation and effectiveness between the hedging
instruments and the hedged items, gains or losses on the derivatives are deferred until maturityof the hedged transactions.
The Company applies the deferral method of hedge accounting through individual hedging that
directly corresponds the hedging target (securities) and the hedging instrument (interest rateswap) to hedges of interest rate risk associated with financial assets and liabilities in accordancewith “Accounting and Auditing Treatments on the Application of Accounting Standards for
Financial Instruments in the Banking Industry” (JICPA Industry-specific Committees Practical
Guideline No. 24 issued by the Japanese Institute of Certified Public Accountants (JICPA). Under
JICPA Industry-specific Committees Practical Guideline No. 24, hedges to offset changes in fairvalue of fixed rate instruments (such as securities) (fair value hedges) are applied by groupinghedging instruments and hedged items by their maturities. The assessment of hedge
effectiveness is generally based on the consideration of interest rate indices affecting therespective fair values of the group of hedging instruments and hedged items.

t.

Per Share Information
Basic net income per share (“EPS”) is computed by dividing net income attributable to commonshareholders by the weighted-average number of common shares outstanding for the period,
retroactively adjusted for stock splits.
Diluted EPS reflects the potential dilution that could occur if securities were exercised orconverted into common stock. Diluted EPS of common stock assumes full conversion of theoutstanding convertible notes and bonds at the beginning of the year (or at the time of issuance)with an applicable adjustment for related interest expense, net of tax, and full exercise ofoutstanding warrants.
Cash dividends per share presented in the accompanying consolidated statement of income are
dividends applicable to the respective years including dividends to be paid after the end of theyear, not retroactively adjusted for a reverse stock split.

- 14 -u.

New Accounting Pronouncements“Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27 issued on
October 28, 2022)“Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No.
25 issued on October 28, 2022)“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28 issued on
October 28, 2022)(1) Overview
Provisions on the classification of recording of income taxes, etc. when taxing othercomprehensive income and on the treatment of tax effects related to the sale of subsidiaryshares, etc. when the group corporate tax system is applied.
(2) Application date
The Company will apply the new guidance from the beginning of the year ending March 31,
2025.
(3) Impact of adoption
As a result of the adoption of these accounting standards, retained earnings at the
beginning of the consolidated fiscal year beginning April 1, 2024 are expected to increaseby ¥674 million ($4,451 thousand).

3.

SIGNIFICANT ACCOUNTING ESTIMATES
Allowance for Loan Losses(1) Amount recorded in the consolidated financial statements in the years ended March 31, 2024
and 2023
Allowance for loan losses:¥23,218 million ($153,345 thousand) and ¥24,189 million in the years ended March 31, 2024
and 2023, respectively.

- 15 -

(2) Information contributing to the understanding of details related to significant accounting
estimates for certain items
1. Calculation method
The calculation method of allowance for loan losses is described in “Note 2.j, "Allowance for
Loan Losses.”
2. Primary assumptionsa) The performance forecast of debtors, including those who prepare management
improvement plans, used to determine the debtor classification, estimate future cash flows
related to the collection of the loan principal and interest, is prepared based onassumptions derived from available information.
Specifically, management improvement plans were developed based on future
performance forecasts, which include future sales forecast, prospect of future expense
reduction, and future cash flow prospect, among others. Accordingly, the reasonablenessand the feasibility of the plan are determined based on industry trends and individual
management improvement plans of the debtors.
b) For loans other than those for which the discounted cash flow method is applied, it isassumed that “normal” loans will incur approximately the same amount of losses as thosefrom previous years, “caution” loans will incur approximately the same amount of losses as
those from previous years and loans to customers who are likely to become bankrupt or to
be closely monitored, which are classified within normal and caution loans, will incur
approximately the same amount of losses as those from previous years.
3. Impact on the consolidated financial statements for the next fiscal year
If the assumptions used in the initial estimate changes due to changes in the external
environment, or the internal environment of the debtor, among others, there is a possibility
that the amount of allowance will increase or decrease due to changes in the debtor
classification, fluctuations of cash flow estimates or the occurrence of circumstances inwhich actual bad debt losses differ from the initial assumption, which may result in asignificant impact on the consolidated financial statements.

- 16 -

4.

CASH AND DUE FROM BANKS
Cash and due from banks as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Cash
Due from banks¥ 53,755
920,188¥

55,027
696,920$ 355,029
6,077,459

Total¥ 973,943¥ 751,947$ 6,432,488

A reconciliation between the cash and due from banks in the consolidated balance sheet and the
cash and cash equivalents in the consolidated statement of cash flows for the years ended March 31,
2024 and 2023, was as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Cash and due from banks
Due from banks other than the Bank of Japan¥ 973,943(5,674 )¥ 751,947(4,569 )$ 6,432,488(37,474 )Cash and cash equivalents¥ 968,269¥ 747,378$ 6,395,014- 17 -

5. TRADING SECURITIES AND SECURITIES
Trading securities as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024Japanese government bonds
Japanese local government bonds

¥

9
-

¥ 67
17

$

59
-

Total

¥

9

¥ 84

$

59

The Company records net valuation gains and losses as other operating income and expenses,
respectively. For the years ended March 31, 2024 and 2023, the Company recorded net valuation
losses of ¥0 million ($0 thousand) and ¥2 million, respectively.
Securities as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Equity securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other securities¥ 185,933
172,544
520,161
307,826
149,216
123,848
13,802¥ 133,372
175,682
527,523
323,856
165,164
122,908
16,002$ 1,228,010
1,139,581
3,435,447
2,033,063
985,510
817,964
91,156

Total¥ 1,473,330¥ 1,464,507$ 9,730,731

Unsecured loaned securities which borrowers have the right to sell or pledge in the amount of¥30,969 million ($204,537 thousand) and ¥45,422 million as of March 31, 2024 and 2023,
respectively, were included in Japanese government bonds.
Information regarding available-for-sale and held-to-maturity securities as of March 31, 2024 and2023, was as follows:

March 31, 2024
Securities classified as:
Available-for-sale:
Equity securities
Debt securities
Foreign bonds
Investment trust
Other
Held-to-maturity—debt securities

Cost¥ 46,474
970,474
154,938
134,433
54,762- 18 -

Millions of Yen
Unrealized Unrealized
Gains
Losses¥133,913
272
131
902
2
250

¥

367
24,977
5,853
11,487
248

Fair
Value

¥ 180,020
945,769
149,216
123,8482
54,764

March 31, 2023

Cost

Securities classified as:
Available-for-sale:
Equity securities
Debt securities
Foreign bonds
Investment trust
Other
Held-to-maturity—debt securities¥ 48,637
985,899
175,527
133,681
58,060March 31, 2024
Securities classified as:
Available-for-sale:
Equity securities
Debt securities
Foreign bonds
Investment trust
Other
Held-to-maturity—debt securities

Millions of Yen
Unrealized Unrealized
Gains
Losses¥ 1,136
17,463
10,592
11,905
187

Thousands of U.S. Dollars
Unrealized Unrealized
Gains
LossesCost$¥ 79,880
564
229
1,132
2
279

306,941
6,409,577
1,023,301
887,874
361,680$ 884,440
1,796
865
5,957
14
1,651

$ 2,424
164,963
38,65675,867
1,638

Fair
Value

¥ 127,381
969,000
165,164
122,9082
58,152

Fair
Value$1,188,957
6,246,410
985,510
817,96414
361,693

Proceeds from sales of available-for-sale securities for the years ended March 31, 2024 and 2023,
consisted of the following:

March 31, 2024

Proceeds

Millions of Yen
Realized
Gains

Equity securities
Debt securities:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other:of which, foreign bonds¥ 36,666¥12,591

28,282
98,38767,045

162
1,998
445

14,851
11,424

Total¥ 163,335¥14,751¥14,975- 19 -

Realized
Losses¥124

March 31, 2023

Proceeds

Millions of Yen
Realized
Gains

Equity securities
Debt securities:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other:of which, foreign bonds¥ 15,848¥ 3,868

24,05863,2301,001
86,28486,284

338
173
1
0
0

507
1
6,988
6,988

Total

¥ 190,421¥ 4,380¥ 7,602

March 31, 2024

Thousands of U.S. Dollars
Realized
Realized
Proceeds
Gains
LossesRealized
Losses¥Equity securities
Debt securities:
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Other:of which, foreign bonds$ 242,164$ 83,158

186,791
649,805
442,804

1,070
13,196
2,939

98,08575,451

Total$1,078,760$ 97,424$ 98,904- 20 -

$

106

819

In addition, held-to-maturity securities amounting to ¥85 million ($561 thousand) and ¥221 million
were reclassified as available-for-sale securities due to a decline in the issuer's credit worthiness asof March 31, 2024 and 2023, respectively. The effect of these reclassifications on the accompanying
consolidated financial statements was immaterial.
Securities other than trading securities (excluding those securities that do not have a market priceand investment in partnerships) whose fair value significantly declined below the acquisition cost andis considered not likely to be recovered are written down to their respective fair value, which isrecorded as the carrying amount on the consolidated balance sheet.
The fair value is deemed to have significantly declined if the year-end fair value declined by 30% ormore from the acquisition cost for securities issued by bankrupt borrowers, virtually bankrupt
borrowers, potentially bankrupt borrowers, and borrowers who are likely to become bankrupt or to beclosely monitored, and if the fair value declined by 50% or more from the acquisition cost for
securities issued by normal borrowers.
The impairment loss on available-for-sale equity securities for the year ended March 31, 2024, was¥63 million ($416 thousand), which consisted of ¥18 million ($119 thousand) of debt securities and¥45 million ($297 thousand) of other securities.
The impairment loss on available-for-sale equity securities for the year ended March 31, 2023, was¥127 million, which consisted of ¥102 million of equity securities and ¥25 million of debt securities.
Unrealized gain on available-for-sale securities as of March 31, 2024 and 2023, consisted of thefollowing:

Millions of Yen
2024
2023
Unrealized gain before deferred tax on:
Available-for-sale securities
Money held in trust—other
Deferred tax liabilities
Unrealized gain on available-for-sale securities
before interest adjustments
Noncontrolling interests
Unrealized gain on available-for-sale securities

Thousands of
U.S. Dollars
2024¥ 92,880
24(27,688)¥ 41,049
12(12,177 )$ 613,434
159(182,868 )

65,216(2)

28,884(2 )

430,725(13 )¥ 65,214¥ 28,882$ 430,712

Unrealized gain before deferred tax on available-for-sale securities includes ¥344 million ($2,272
thousand) and ¥339 million of revaluation gain on available-for-sale securities as of March 31, 2024
and 2023, which are held by an investment limited partnership and similar groups.
Investments in and advances to subsidiaries and associated companies as of March 31, 2024 and2023, were ¥1,229 million ($8,117 thousand) and ¥1,115 million, respectively.

- 21 -

6. MONEY HELD IN TRUSTInformation regarding money held in trust for trading purposes as of March 31, 2024 and 2023, was
as follows:
Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Money held in trust classified as trading purpose
Money held in trust—other¥ 6,000
7,225¥ 6,000
5,312$ 39,628
47,718

Total¥13,225¥11,312$ 87,346- 22 -

7. LOANS AND BILLS DISCOUNTED
Loans and bills discounted as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023
Bills discounted
Loans on bills
Loans on deeds
Overdrafts
Others¥13,07697,657
4,353,775
365,826
8,081

Total

¥ 4,838,415¥

Thousands of
U.S. Dollars
2024

12,61889,9924,233,821
352,447
6,570$

86,362644,984
28,754,871
2,416,128
53,371¥ 4,695,448$31,955,716

Loans under the Banking Act and the Act on Emergency Measures for the Revitalization of Financial
Functions are as follows: Loans are corporate bonds in “Securities” in the consolidated balance sheet(guaranteed for all or part of the redemption of the principal and payment of interest, and the issuanceof such bonds is limited to private placement of securities (Article 2, Paragraph 3 of the Financial
Instruments and Exchange Act)), loans and bills discounted, foreign exchange, accrued interest andadvance payments in “Other Assets”, etc., as well as securities recorded in each account, such as
customers' liabilities for acceptances and guarantee, and securities (limited to those under use leases
or lease agreements) in the case of lending of securities that are to be noted.

Millions of Yen
2024
2023
Loans under bankruptcy/rehabilitation or similar
proceedings
Doubtful loans
Loans requiring management
Accruing loans past due three months or more
Restructured loans
Normal loans
Total

¥

14,19849,3792,003
2,003
4,931,374¥

13,19552,316
2,121
113
2,008
4,786,599¥ 4,996,954¥ 4,854,231

Thousands of
U.S. Dollars
2024$

93,772
326,128
13,22913,22932,569,672$33,002,801

Loans under bankruptcy/rehabilitation or similar proceedings” are loans against borrowers who havefallen into bankruptcy due to reasons such as the commencement of bankruptcy proceedings, thecommencement of rehabilitation proceedings, or the application for the commencement of
rehabilitation proceedings, as well as similar loans.
“Doubtful loans” are claims in which the debtor has not yet reached a state of bankruptcy, but whose
financial position and operating results have deteriorated and there is a high possibility that the
principal of the receivables and interest cannot be collected in accordance with the contract. Loans
under bankruptcy/rehabilitation or similar proceedings are excluded from doubtful loans.
“Accruing loans past due three months or more” are defined as loans and bills discounted for whichprincipal or interest is past due more than three months from the date following the prescribedpayment date. Loans under bankruptcy/rehabilitation or similar proceedings and doubtful loans are
excluded from accruing loans past due three months or more.

- 23 -

“Restructured loans” are defined as loans and bills discounted in which the Company is providing
financial support to a borrower by a reduction of interest rates, deferral of interest payments,
extension of maturity dates, or reduction of the face or maturity amount of the debt or accrued
interest. Loans under bankruptcy/rehabilitation or similar proceedings, doubtful loans and accruingloans past due three months or more are excluded from restructured loans.
“Normal loans” are those that do not have any particular problems with the financial position andoperating results of the borrower and classified other than loans under bankruptcy/rehabilitation orsimilar proceedings, doubtful loans, accruing loans past due three months or more and restructuredloans.
Bills discounted are accounted for as financing transactions in accordance with "Accounting and
Auditing Treatments on the Application of Accounting Standards for Financial Instruments in the
Banking Industry" (JICPA Industry-specific Committees Practical Guideline No. 24) issued by theJapanese Institute of Certified Public Accountants. The Bank has rights to sell or pledge accepted
commercial bills discounted and foreign bills of exchange bought without restrictions. The total fairvalue of commercial bills discounted and foreign bills of exchange bought included in foreignexchanges as of March 31, 2024 and 2023, were ¥13,403 million ($88,521 thousand) and ¥12,977
million, respectively.

- 24 -

8.

FOREIGN EXCHANGES
Foreign exchanges as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

9.

Thousands of
U.S. Dollars
2024

Assets:Due from foreign correspondent accountForeign bills of exchange bought
Foreign bills of exchange receivable¥ 5,523327
375¥ 6,052359
616$ 36,477
2,160
2,477

Total

¥ 6,225¥ 7,027$ 41,114

Liabilities:
Due to foreign correspondent accountForeign bills of exchange payable

¥

8
1,102

¥ 1,366
359

$

Total

¥ 1,110¥ 1,725$ 7,33153
7,278

OTHER ASSETS
Other assets as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

10.

Accrued income
Accounts receivable
Installment receivables
Derivative assets
Other

¥

5,089
12,552
19,5297,704
50,613Total¥ 95,487¥

4,759
12,54718,047
6,372
62,003¥103,728

Thousands of
U.S. Dollars
2024$

33,611
82,901
128,981
50,882334,277$ 630,652

PREMISES AND EQUIPMENT
Premises and equipment as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Land
Building
Construction in progress
Other¥ 43,399
9,655
29
4,475

¥ 43,399
9,949
4,022

$ 286,632
63,767
192
29,556

Total¥ 57,558¥ 57,370$ 380,147

The accumulated depreciation of premises and equipment as of March 31, 2024 and 2023 amounted
to ¥62,952 million ($415,772 thousand) and ¥63,276 million, respectively.

- 25 -

11.

CUSTOMERS' LIABILITIES FOR ACCEPTANCES AND GUARANTEESAll contingent liabilities arising from acceptances and guarantees are reflected in acceptances andguarantees. As a contra account, the customers' liabilities for acceptances and guarantees arepresented as assets, representing the Company's right of indemnity from applicants.
Guarantee obligations for private placement bonds included in “Securities” (provided in accordancewith Article 2-3 of the “Financial Instruments and Exchange Act”) as of March 31, 2024 and 2023,
were ¥54,956 million ($362,961 thousand) and ¥58,286 million, respectively.

12.

ASSETS PLEDGED
Assets pledged as collateral and their relevant liabilities as of March 31, 2024 and 2023, were as
follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Assets pledged as collateral:
Securities
Loans and bills discounted
Other assets¥ 313,643
1,035,357
154¥ 406,713
1,110,166110$ 2,071,481
6,838,102
1,017

Total

¥ 1,349,154¥ 1,516,989$ 8,910,600¥

83,691
96,567
122,476
327,500¥

93,297
97,835
311,440$¥ 630,234¥

502,572$ 4,162,433

Relevant liabilities to above assets:
Deposits
Payables under repurchase agreements
Payables under securities lending transactions
Borrowed money
Total

552,744637,785
808,9032,163,001

Additionally, initial margins of futures markets, cash collateral received for financial instrument
liabilities, guarantee deposits and initial margins of Central Counterparty included in other assets
were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Initial margins of future markets
Cash collateral received for financial
instruments liabilities
Guarantee deposits
Initial margins of Central Counterparty¥ 4,172¥ 3,600

973
1,846
35,3185,553
1,862
35,332

6,426
12,192233,261

Total¥ 42,309¥ 46,347$ 279,433- 26 -$

27,554

13.

DEPOSITS
Deposits as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

14.

Thousands of
U.S. Dollars
2024

Current deposits
Ordinary deposits
Deposits at notice
Savings deposits
Time deposits
Other deposits¥ 505,243
3,965,817
58,96389,156
1,730,254
39,302¥ 433,825
3,821,036
53,766
98,617
1,796,513
63,224$ 3,336,920
26,192,570
389,426
588,838
11,427,607
259,573

Total¥ 6,388,735¥ 6,266,981$42,194,934

BORROWED MONEY AND LEASE OBLIGATION
Borrowed money and lease obligation as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023
Borrowings due serially to March 2029
with weighted-average interest rates of
0.10% in 2024 and 0.09% in 2023
Lease obligation¥ 346,327-¥ 329,501-

Thousands of
U.S. Dollars
2024$ 2,287,346-

Weighted-average interest rates of lease obligation are not represented because the lease obligation
is disclosed on the balance sheet without deducting the interest portion, which is included in theamount of the lease obligation.
Annual maturities of borrowings as of March 31, 2024 were as follows:
As of March 31, 2024
Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

2025
2026
2027
2028
2029
2030 and thereafter¥ 122,046
3,135
39,928
180,933
285
-

$

Total

¥

$ 2,287,346

346,327

There were no lease obligations as of March 31, 2024 and 2023, respectively.

- 27 -

806,063
20,705
263,708
1,194,981
1,883
-

15.

OTHER LIABILITIESOther liabilities as of March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023
Domestic exchange settlement account, credit*
Income taxes payable
Accrued expenses
Deferred income
Derivative liabilities
Accounts payable
Other

¥

712
3,584
1,326
15,587
5,722
10,06826,174

Total¥ 63,173¥

Thousands of
U.S. Dollars
2024

192
3,388
1,197
16,9689,770
10,316
13,750$4,702
23,671
8,758
102,946
37,791
66,495
172,869¥ 55,581$ 417,232* The domestic exchange settlement account consisted of outstanding remittance bills from otherbanks and/or collection bills for which the Company has received notices for payment from otherbanks, which have not been settled.

- 28 -

16.

RETIREMENT AND PENSION PLANS
The Company and the consolidated subsidiaries engaged in banking business (the “Bank”), have acontributory funded defined benefit pension plan, lump-sum payment severance plan for employees
and defined contribution pension plan. The Bank contributed certain assets to the employee
retirement benefit trust for its contributory funded defined benefit pension plan and the assets in thistrust are qualified as plan assets. Certain subsidiaries other than above have lump-sum payment
severance plans for employees and apply the simplified method to state the liability based on theamount that would be paid if employees retired at the consolidated balance sheet date.
(1) The changes in defined benefit obligation for the years ended March 31, 2024 and 2023, were as
follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Balance at beginning of year
Current service cost
Interest cost
Actuarial losses
Benefits paid

¥ 40,573
1,344
137
394
(2,277 )¥ 41,350
1,405
139
23
(2,344 )$ 267,968
8,877
905
2,602
(15,039 )Balance at end of year

¥ 40,171¥ 40,573$ 265,313(2) The changes in plan assets for the years ended March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Balance at beginning of year
Expected return on plan assets
Actuarial gains (losses)
Contributions from the employer
Benefits paid

¥ 47,835
1,435
10,210638(1,697 )¥ 49,398
1,481(2,019 )668(1,693 )$ 315,930
9,478
67,432
4,214(11,208 )Balance at end of year

¥ 58,421¥ 47,835$ 385,846(3) Reconciliation between the liability recorded in the consolidated balance sheet and the balancesof defined benefit obligation and plan assets as of March 31, 2024 and 2023, was as follows:

Millions of Yen
2024
2023
Funded defined benefit obligation
Plan assets

Thousands of
U.S. Dollars
2024

Unfunded defined benefit obligation¥ 34,599(58,421 )(23,822 )5,572¥ 34,641(47,835 )(13,194 )5,932$ 228,512(385,846)(157,334)
36,801

Net asset arising from defined benefit obligation¥(18,250 )¥ (7,262 )$ (120,533 )- 29 -

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Liability for retirement benefits for employees
Asset for retirement benefits for employees¥ 5,572(23,822 )¥ 5,933(13,195)$

36,801(157,334)

Net asset arising from defined benefit obligation¥(18,250 )¥ (7,262 )$ (120,533 )(4) The components of net periodic benefit costs for the years ended March 31, 2024 and 2023,
were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Service cost
Interest cost
Expected return on plan assets
Recognized actuarial gains
Past service cost

¥ 1,344
137(1,435 )(25 )(367 )¥ 1,405139(1,481 )(475 )(1,470 )

$

8,877
905
(9,478)(165)(2,424)

Net periodic benefit costs¥¥ (1,882 )$(2,285)(346 )(5) Amounts recognized in other comprehensive income (before income tax effect) in respect ofdefined retirement benefit plans for the years ended March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Past service cost
Actuarial gains (losses)¥(367 )
9,791¥ (1,470 )(2,516 )$(2,424 )64,665

Total¥ 9,424¥ (3,986 )$

62,241(6) Amounts recognized in accumulated other comprehensive income (before income tax effect) in
respect of defined retirement benefit plans as of March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Unrecognized past service cost
Unrecognized actuarial gains¥(10,205 )¥ (367)(414)$(67,400 )Total¥(10,205 )¥ (781)$(67,400 )- 30 -

(7) Plan assets(a) Components of plan assets
Plan assets consisted of the following:
2024

2023

Debt investments
Equity investments
General account for life insurance
Others

23%
50
15
12

26%
42
18
14

Total

100 %

100 %

Note: The retirement benefit trust that contributed to the pension plan is included in theplan assets and constitutes 27% and 20% of the total plan assets as of March 31,
2024 and 2023, respectively.

(b) Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering the current and future
asset portfolio and the long-term rates of return which are expected currently and in the
future from the variety of plan assets in the asset portfolio.
(8) Assumptions used for the years ended March 31, 2024 and 2023, were set forth as follows:

Discount rate:
Lump-sum payment
Pension plan
Expected rate of return on plan assets

2024

2023

0.084%
0.382
3.000

0.084 %
0.382
3.000

The amount to be paid to defined contribution pension plan was ¥413 million ($2,728 thousand)and ¥362 million for the years ended March 31, 2024 and 2023, respectively.
17.

ASSET RETIREMENT OBLIGATIONS
The description is omitted because the total amount of asset retirement obligations is immaterial.

- 31 -

18.

EQUITYJapanese companies are subject to the Companies Act of Japan (the "Companies Act"). The
significant provisions in the Companies Act that affect financial and accounting matters are
summarized below:a.

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon resolution at the shareholders' meeting. Additionally, forcompanies that meet certain criteria including (1) having a Board of Directors, (2) having
independent auditors, (3) having an Audit & Supervisory Board, and (4) the term of service of thedirectors being prescribed as one year rather than the normal two-year term by its articles ofincorporation, the Board of Directors may declare dividends (except for dividends-in-kind) at any
time during the fiscal year if the company has prescribed so in its articles of incorporation, theBoard of Directors may declare dividends (except for dividends-in-kind) at any time during the
fiscal year if the company has prescribed so in its articles of incorporation. With respect to thethird condition above, the Board of Directors of companies with (a) board committees (namely,
appointment committee, compensation committee and audit committee) or (b) an audit andsupervisory committee (as implemented under the Companies Act effective May 1, 2015) may
also declare dividends at any time because such companies, by nature, meet the criteria under
the Companies Act. The Company is organized as a company with an audit and supervisorycommittee. The Company meets all the above criteria and, accordingly, the Board of Directors
may declare dividends (except for dividends-in-kind) at any time during the fiscal year.
The Companies Act permits companies to distribute dividends-in-kind (noncash assets) toshareholders subject to a certain limitation and additional requirements. Semiannual interim
dividends may also be paid once a year upon resolution by the Board of Directors if the articles
of incorporation of the Company so stipulate. The Companies Act provides certain limitations on
the amounts available for dividends or the purchase of treasury stock. The limitation is defined as
the amount available for distribution to the shareholders, but the amount of net assets after
dividends must be maintained at no less than ¥3 million.

b.

Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriatedas a legal reserve (a component of retained earnings) or as additional paid-in capital (acomponent of capital surplus), depending on the equity account charged upon the paymentof such dividends, until the aggregate amount of legal reserve and additional paid-in capitalequals 25% of the common stock. Under the Companies Act, the total amount of additional
paid-in capital and legal reserve may be reversed without limitation. The Companies Act also
provides that common stock, legal reserve, additional paid-in capital, other capital surplus
and retained earnings can be transferred among the accounts within equity under certain
conditions upon resolution of the shareholders.

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of suchtreasury stock by resolution of the Board of Directors. The amount of treasury stock purchased
cannot exceed the amount available for distribution to the shareholders which is determined by aspecific formula. Under the Companies Act, stock acquisition rights are presented as a separate
component of equity. The Companies Act also provides that companies can purchase bothtreasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights arepresented as a separate component of equity or deducted directly from stock acquisition rights.

19. STOCK OPTIONS
From the previous consolidated fiscal year, the Company abolished the stock compensation-type
stock option plan and introduced a restricted stock compensation plan.
- 32 -

20.

OTHER OPERATING INCOME
Other operating income for the years ended March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

21.

Thousands of
U.S. Dollars
2024

Gains on sales of Japanese government bonds and other
Income on lease transaction and installment receivables
Other¥ 1,151
25,536
3,616

¥

512
25,204
4,135

$

7,602
168,655
23,882

Total¥ 30,303¥ 29,851$ 200,139

OTHER INCOME
Other income for the years ended March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

22.

Thousands of
U.S. Dollars
2024

Gain on sales of stock and other securities
Other¥ 13,600
692¥ 3,868
747$

89,822
4,570

Total

¥ 14,292¥ 4,615$

94,392

GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses for the years ended March 31, 2024 and 2023, consisted of thefollowing:

Millions of Yen
2024
2023

23.

Thousands of
U.S. Dollars
2024

Salaries and wages
Commission fee
Other¥ 17,706
4,661
21,705¥ 17,729
4,642
19,868$ 116,941
30,784
143,352

Total¥ 44,072¥ 42,239$ 291,077

OTHER EXPENSE
Other expense for the years ended March 31, 2024 and 2023, consisted of the following:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Loss on sales of stock and other securities
Write-down of stock and other securities
Other

¥

267
1
525

¥ 106
161
312

$

1,763
7
3,468

Total

¥

793

¥ 579

$

5,238

- 33 -

24.

INCOME TAXESThe tax effects of significant temporary differences and tax loss carryforwards, which result indeferred tax assets and liabilities as of March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023
Deferred tax assets:
Allowance for loan losses
Write-down of securities
Liability for retirement benefits for employees
Depreciation
Other
Less: valuation allowance
Total
Deferred tax liabilities:
Unrealized gain on available-for-sale securities
Net defined benefit asset
Loss on deferred hedge
Gain on contribution of available-for-sale securities
to employees' retirement benefit trusts
Other
Total
Net deferred tax liabilities¥ 5,499
6,520
1,671
1,123
2,431
(8,394 )

¥

6,267
6,757
1,779
1,198
2,196
(8,468)

Thousands of
U.S. Dollars
2024$

36,31943,062
11,036
7,417
16,055(55,439 )

8,850

9,729

58,450(27,688 )(5,211 )(971 )(12,177)(1,835)(50)(182,868 )(34,416 )(6,413 )(955 )(1,354 )(955)(1,378)(6,307 )(8,943 )(36,179 )(16,395)(238,947 )¥(27,329 )¥ (6,666)$ (180,497 )A reconciliation between the normal effective statutory tax rate and the actual effective tax rate
reflected in the accompanying consolidated statement of income for the years ended March 31, 2024
and 2023 is omitted, because the difference between the statutory effective tax rate and the corporate
tax burden rate after the application of tax effect accounting is not more than 5% of the statutory
effective tax rate.

- 34 -

25.

LEASES
Finance Leases(Lessee)A subsidiary leases certain premises.
There was no rental expense including lease payments under the finance leases for the years ended
March 31, 2024 and 2023.
(Lessor)A subsidiary leases certain equipment and other assets.
The net investments in leases as of March 31, 2024 and 2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Gross lease receivables
Unguaranteed residual values
Deferred interest income¥ 49,903
1,158(4,197 )¥ 51,606
1,265(4,352 )$ 329,589
7,648(27,720 )Total¥ 46,864¥ 48,519$ 309,517

Maturities of lease receivables for finance leases that were deemed to transfer ownership of theleased assets to the lessee are as follows:
As of March 31, 2024
Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

2025
2026
2027
2028
2029
2030 and thereafter¥ 1,960
1,768
1,504
1,297
1,027
1,747

$12,945
11,677
9,933
8,566
6,783
11,538Total¥9,303$61,442

As of March 31, 2023
Year Ending
March 31

Millions of Yen

2024
2025
2026
2027
2028
2029 and thereafter¥ 1,432
1,197
866
618
469
789

Total

¥ 5,371- 35 -

Maturities of investment in leases for finance leases that were deemed not to transfer ownership ofthe leased assets to the lessee are as follows:
As of March 31, 2024
Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

2025
2026
2027
2028
2029
2030 and thereafter¥ 14,473
11,435
8,870
6,378
4,090
4,657

$95,588
75,52358,58342,12427,01330,758

Total¥ 49,903$ 329,589

As of March 31, 2023
Year Ending
March 31

Millions of Yen

2024
2025
2026
2027
2028
2029 and thereafter¥ 14,909
12,079
9,182
6,580
4,108
4,748

Total

¥ 51,606

Operating Leases(Lessee)
The minimum rental commitments under noncancelable operating leases as of March 31, 2024 and2023, were as follows:

Millions of Yen
2024
2023

Thousands of
U.S. Dollars
2024

Due within one year
Due after one year

¥

257
1,045

¥ 238
1,210

$

1,697
6,902

Total

¥ 1,302¥ 1,448$

8,599- 36 -

(Lessor)
Expected future rental revenues under operating leases as of March 31, 2024 and 2023, were as
follows:

Millions of Yen
2024
2023

26.

Thousands of
U.S. Dollars
2024

Due within one year
Due after one year

¥

366
434

¥ 425
500

$

2,417
2,867

Total

¥

800

¥ 925

$

5,284

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES(1) Group Policy for Financial Instruments
The Group provides banking services and comprehensive financial services including a leasing
business.
In the core banking business, in addition to procurement through the acceptance of deposits, theGroup raises funds through borrowings and other means, manage loans with a focus on businessloans and housing loans, and manage securities investment with a focus on bonds.
Since the Group has financial assets and liabilities mainly accompanied by interest rate
fluctuations, the Group conducts comprehensive management of assets and liabilities (ALM) sothat adverse effects from interest rate fluctuations do not occur. As part of this, the Group also
conducts derivative transactions.
(2) Nature and Extent of Risks Arising from Financial Instruments
The loans and bills discounted are to general business enterprises, individuals, and local publicbodies, and there is a risk (credit risk) that the value of loaned money is reduced by financial
deterioration of the borrower and a risk (interest risk) of losses due to changes in interest rates.
In securities, the Group holds domestic bonds, foreign securities, stocks, investment trusts, andinvestment partnerships and so forth for investment purposes. Also, the Group holds certain
domestic bonds for held-to-maturity purposes. In trading securities, the Group holds domestic
bonds for trading. These items have interest risk, risk of changes in price, credit risk, and market
liquidity risk. Market liquidity risk represents the risk that market trades cannot be performed due
to market turmoil and that the Group may suffer losses due to significantly unfavorable financing
conditions.
Deposits and borrowed money hold interest risk and cash flow risk (liquidity risk). Cash flow riskrefers to the risk that securing necessary financing becomes difficult or significant unfavorable
financing conditions result in recording of loss due to a mismatch of periods between operations
and financing and unexpected outflows of money. Derivative transactions related to interest arecomposed of interest-rate swap agreements, cap agreements, floor agreements, and interest
futures.
Derivative transactions related to currency are composed of exchange contracts, non-deliverable
forwards (NDF), currency swap agreements, and currency option contracts. Derivativetransactions related to securities are composed of bond futures, options on bond futures, overthe-counter (OTC) bond options, stock index futures, options on stock index futures, andindividual security options.
The Group utilizes derivative transactions to meet customer needs and to control risk so thatinterest risk, risk of changes in prices, and foreign currency exchange risk are not excessive. In
trading transactions, the Group utilizes derivative transactions to earn a profit and to accumulate- 37 -

the know-how related to the transactions and understand market trends.
The derivative transactions the Group utilizes are exposed to interest risk, currency exchangerisk, the risk of change in prices, and credit risk. In utilizing derivative transactions, the Group
performs effective covering of transactions to meet customers' needs, and in tradingtransactions, the Group preliminarily establishes a risk limit to avoid exposing the Group to an
excessive degree of market risk. Transactions such as listed futures are exposed to limited credit
risk and OTC transactions such as interest swaps are assumed to have low risk since thecounterparties are composed of highly credible financial institutions and companies.
For some derivative transactions that hedge securities, etc., the Company applies hedge
accounting based on internal regulations and internal hedging policies complying with the“Practical Guidelines for Accounting for Financial Instruments” (Accounting System Committee
Report No. 14, hereinafter referred to as the “Practical Guidelines”). The hedging target andhedging instrument to which hedge accounting was applied in the current consolidated fiscal year
are as follows:・Hedging target: Securities
・Hedging instrument: Interest Rate Swap
The effectiveness of hedging is evaluated in the manner stipulated in the Practical Guidelines,
etc.
(3) Risk Management for Financial Instruments
Integrated risk
The Group defines integrated risk management policies and regulations, and strengthens
integrated risk management to ensure the soundness of management.
The Group monitors various risks holistically including measurement by statistical methods andaims to control risks within the range of management vitality. Integrated risk is managed by theGroup Risk Supervisory Division and is reported generally quarterly to the Group Risk
Compliance Meeting and Group Risk Compliance Committee and generally semiannually to theBoard of Directors' meetings. Necessary actions such as risk control are taken promptly.
Credit risk management
Credit risk refers to the risk of incurring losses due to a decrease or loss in the value of assets asa result of deterioration in the financial situation of a creditor.
Regarding credit risk management, the Group defines a credit rating system where the Groupevaluates the degree of credit risk by an integrated scale objectively and discusses
countermeasures with the Group companies as necessary in addition to monitoring the status ofcredit risk management at the Group companies and the risk of credit concentration throughout
the Group.
Market risk management (foreign exchange risk and interest rate risk)
Market risk refers to the risk that the value of assets and liabilities will fluctuate due to fluctuations
in various market risk factors such as interest rates, foreign exchange rates, and stocks, and therisk of incurring losses due to fluctuations in the earnings generated from assets and liabilities.
Under integrated risk management, the consolidated subsidiaries engaged in banking businesssemi-annually allocate risk capital to each business (deposit, loan, investment securities andother securities) and establish a cap on the investment amount and a maximum loss amount andmatter to be discussed (level of loss to be re-examined) and department in charge handles
market transactions within these risk limits expeditiously and effectively.
The Group holds financial instruments which are exposed to market risks (e.g. interest rate risk,
price-volatility risk and exchange risk) such as loans and bills discounted, securities, deposits,
negotiable deposits, borrowed money and corporate bonds. To manage these market risks, the- 38 -

Group calculates Value at Risk (VaR), which is used for quantitative analysis.
The Group calculates VaR of yen-denominated bonds (including private placement bonds),
borrowed money and corporate bonds that are exposed to interest rate risk by thevariance-covariance method (six months holding period with confidence interval of 99% andobservation period one year). The VaR of these financial instruments amounted to¥35,880 million ($236,972 thousand) and ¥55,738 million in aggregate as of March 31, 2024 and2023, respectively.

The Group calculates VaR of investment securities that are exposed to price-volatility risk by thevariance-covariance method (six months holding period with confidence interval of 99% andobservation period one year). The VaR of these financial instruments amounted to¥48,629 million ($321,174 thousand) and ¥32,288 million in aggregate as of March 31, 2024 and2023, respectively.
In addition, the Group calculates VaR of securities, excluding investment securities, which areexposed to interest rate risk or the price-volatility risk by the variance-covariance method (sixmonths holding period with confidence interval of 99% and observation period one year). The
VaR of these financial instruments amounted to ¥32,158 million ($212,390 thousand) and¥66,856 million in aggregate as of March 31, 2024 and 2023, respectively.
The Group compares VaR calculated by the formula with the actual fluctuation of realized gains
and losses to verify that the calculated VaR reflects market risks with a high degree of accuracy.
However, VaR might not reflect market risks in circumstances such as unforeseen wide
fluctuations in market circumstances because VaR reflects a certain amount of market risks
calculated statistically based on historical fluctuation.
Liquidity risk management
Liquidity risk refers to cash flow risk and market liquidity risk. Cash flow risk refers to the risk of
incurring losses due to a mismatch between the investment and funding periods or an
unexpected outflow of funds, which makes it difficult to secure the necessary funds, or due tobeing forced to raise funds at a significantly higher interest rate than usual. Market liquidity riskrefers to the risk of incurring losses due to the inability to trade in the market due to market
turmoil or other factors or being forced to trade at a significantly more disadvantageous pricethan usual. The Company monitors the status of cash flow and liquidity risk and matters affecting
cash flow and has established a system to respond promptly and accurately even if an
unforeseen situation occurs.

- 39 -

(4) Financial Instruments Categorized by Fair Value Hierarchy
Fair values of financial instruments are calculated based on certain assumptions; therefore, fairvalues may vary according to the assumptions used.
The amount recorded in the consolidated balance sheet, market value, the difference between
these, and the market value for each level are as follows. Shares without market prices andinvestment in partnerships are not included in the following table:
The fair value of financial instruments is categorized into the following three levels according tothe observability and significance of the inputs used in making fair value measurements:
Level 1: Fair values measured by using observable inputs, i.e. quoted prices in active markets for
assets or liabilities that are the subject of the measurement.
Level 2: Fair values measured by using observable inputs other than Level 1 inputs.
Level 3: Fair values measured by using unobservable inputs.
If multiple inputs are used that have a significant impact on the measurement of fair value, fairvalue is classified at the lowest level in the fair value measurement among the levels to which
each of these inputs belongs.
(a) Financial instruments measured at fair value:
Millions of Yen
Carrying AmountMarch 31, 2024
Securities (available-for-salesecurities)
Japanese equity securities
Japanese government
bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust (*1)
Other securities
Total assets
Derivative transactions(*2) (*3)
Interest-related transaction
Currency-relatedtransaction
Credit derivativetransaction

Level 1

Level 2

Level 3

¥ 406,047¥986,638¥

171,145

Total

168

¥1,392,853

8,875

-

180,020

172,544--

172,544-

520,161-

520,161-

252,896168

253,064

51,48910,869-97,727
106,9772-

149,216
117,8462¥406,047¥986,638

168¥1,392,853¥-¥ 2,018¥ (36)

-

3,545

-

3,545

-

(1,527)-(1,527)

-

-

(36)

(36)

- 40 -

¥

¥

1,982

Millions of Yen
Carrying AmountMarch 31, 2023
Securities (available-for-salesecurities)
Japanese equity securities
Japanese government
bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust (*1)
Other securities
Total assets
Derivative transactions(*2) (*3)
Interest-related transaction
Currency-relatedtransaction
Credit derivativetransaction

Level 1

Level 2

Level 3

¥ 345,262¥1,030,415

120,645190¥1,375,867

6,736

-

127,381

175,682--

175,682-

527,523-

527,523-265,605190

265,795

38,565
10,370-126,598
103,9512-

165,163
114,3212¥345,262¥1,030,415

190¥1,375,867
¥

¥

¥

Total

¥

-

¥ (3,371)¥ (27)

-

500

-

500

-

(3,871)-(3,871)

-

-

(27)

(27)

- 41 -(3,398)

Thousands of U.S. Dollars
Carrying AmountMarch 31, 2024
Securities (available-for-salesecurities)
Japanese equity securities
Japanese government
bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust (*1)
Other securities
Total assets
Derivative transactions(*2) (*3)
Interest-related transaction
Currency-relatedtransaction
Credit derivative transaction

Level 1

Level 2

Level 3

Total

$2,681,771$6,516,333$1,110$9,199,214

1,130,341
1,139,581

58,616---

1,188,957
1,139,581-

3,435,447-

3,435,447-

1,670,272

1,110

1,671,382

340,064
71,785-645,446
706,53913-

985,510778,324
13$2,681,771$6,516,333$1,110$9,199,214$-$ 13,328$ (238)$ 13,090-

23,413-

23,413-(10,085)-(10,085)

-

-

(238)

(238)

(*1) Investment trusts for which the base value under Paragraph 24-9 of the “Implementation
Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31,
June 17, 2021) is deemed as market value are not included. The amounts of investment
trusts on the consolidated balance sheets at March 31, 2024 and 2023 are ¥6,002 million($39,641 thousand) and ¥8,588 million, respectively.
(*2) Derivative transactions recorded in other assets and liabilities are presented collectively.
Net receivables and liabilities arising from derivative transactions are presented in net
amounts, and items that constitute net liabilities in total are presented in parentheses.
(*3) Among derivative transactions, the amounts of transactions on the consolidated balance
sheets to which hedging accounting is applied at March 31, 2024 and 2023 are ¥3,247
million ($21,445 thousand) and ¥167 million, respectively.

- 42 -

The adjustment table from the beginning balance to the year-end balance of investment trusts
for which the base value is deemed as the market value is as follows:¥8,588

Thousands of
U.S. Dollars$ 56,720

Recorded in profit or loss

523

3,454

Recorded in othercomprehensive income (*)(488)(3,223)(2,621)(17,310)--

Millions of Yen
Beginning balance
Profit or loss or othercomprehensive income for theperiodPurchases, sales andredemption (net)Amount for which the base valueof the investment trusts is
considered to be the fair value
Amount for which the base valueof the investment trusts is notconsidered to be the fair value
Ending balance--¥ 6,002$ 39,641

Gains or losses on valuation of
the investment trusts held at theend of the reporting period
included in profit or loss for theperiod¥-$-(*) Included in the “Unrealized loss on available-for-sale securities” under "Other
Comprehensive Income" in the Consolidated Statement of Comprehensive Income.

- 43 -

(b) Financial instruments other than those measured at fair value:
Cash and due from Banks, call loans and bills bought, negotiable certificates of deposit, payables under repurchase agreements, and payables under securities lending transactions are settled in a short period of time, and the carrying
value approximates fair value. Therefore, the notes are omitted.
Millions of Yen
Fair Value

March 31, 2024
Level 1
Securities (held-to-maturity—debt
securities)
Corporate bonds
Loans and bills discounted
Reserve for possible loan losses

Level 2

Level 3¥-

¥ -Total assets

¥

-

¥

Deposits
Borrowed money
Total liabilities

¥
¥

-

¥

Carrying
Amount

Total

Difference

54,764¥ 54,764-

4,779,293¥4,834,057

4,779,293¥4,834,057

54,762
4,838,415(21,668)
4,816,747¥4,871,509¥6,388,738
346,267¥ -¥6,388,738
346,267¥6,388,735
346,327¥3(60)¥6,735,005¥¥6,735,005¥6,735,062

¥

(57)

-

¥

¥

2

(37,454)¥(37,452)

Millions of Yen
Fair Value

March 31, 2023
Level 1

Level 2

Level 3Carrying
Amount

Total

Difference

Securities (held-to-maturity—debt
securities)
Corporate bonds
Loans and bills discounted
Reserve for possible loan losses

¥

-

¥ -

¥

58,152¥ 58,152

Total assets

¥

-

¥ -

4,655,584¥4,713,736

4,655,584¥4,713,736

58,0604,695,448(22,770)
4,672,678¥4,730,738

Deposits
Borrowed money
Total liabilities¥-¥6,266,995
329,453¥ -¥6,266,995
329,453¥6,266,981
329,501

¥

14
(48)

¥6,596,448¥¥6,596,448¥6,596,482

¥

(34)

¥

-

¥

¥

92

(17,094)¥(17,002)

Thousands of U.S. Dollars
Fair Value

March 31, 2024
Level 1
Securities (held-to-maturity—debt
securities)
Corporate bonds
Loans and bills discounted
Reserve for possible loan losses

Level 2

Level 3$-$

Total assets

$

-

$ -

Deposits
Borrowed money
Total liabilities$-$42,194,954
2,286,949$$44,481,903

$

$

-

$

Carrying
AmountTotal

361,693

31,565,240$31,926,933

361,680
31,955,716(143,108)
31,812,608$32,174,288-$42,194,954
2,286,949$42,194,934
2,287,346

$

20
(397)

-

$44,481,903$44,482,280

$

(377)

31,565,240$31,926,933$

361,693$

Difference* Allowances for general doubtful accounts and allowances for individual doubtful accounts corresponding to loans are deducted.
- 44 -$

13(247,368)$(247,355)

(Note 1) Explanation of evaluation techniques used for the calculation of market value and inputs
related to the calculation of market value
AssetsSecurities
Securities whose unadjusted quoted prices in active markets are available are categorized
as Level 1. This mainly includes listed stocks, listed investment trusts, and government
bonds.
Securities whose quoted prices are not considered to be in active markets due to low market
transactions are categorized as Level 2. This mainly includes Japanese local government
bonds and corporate bonds. Regarding investment trusts with no trading prices in themarket, if there is no restriction significant enough for market participants to requireconsideration relating to cancellation or repurchase claims, the base value is fair value andthe fair value is classified as Level 2.
When the quoted price is not available, the fair value is measured by using valuation
techniques such as the discounted present value method of future cash flows. The Company
makes maximum use of observable inputs for valuation techniques, which include TIBOR,
prepayment rate, credit spread, bankruptcy probability, and bankruptcy loss rate. Securities
whose fair values are measured by using significant unobservable inputs are categorized as
Level 3.
Loans and Bills Discounted
The fair values of loans are measured by discounting the total amount of principal andinterest at a discount rate that reflects credit risk, etc. in the market interest rate for eachtype of loan, internal rating, and classification based on period. For loans with variableinterest rates, the carrying value approximates fair value because it reflects the market
interest rate in the short term as long as the credit status of the borrower has not changed
significantly. In addition, as for loans to legally bankrupt borrowers, virtually bankrupt
borrowers, and potentially bankrupt borrowers, the fair value is calculated by deducting theallowance, which is calculated based on the discounted present value of the estimated future
cash flow or the estimated collection of cash from collateral and guarantee, from the balancein the consolidated balance sheet date. Therefore, the carrying value approximates fairvalue. The fair value is classified as a Level 3 fair value.
Liabilities
Deposits
For demand deposits, the amount payable immediately on demand as of the consolidatedbalance sheet date is considered to be the fair value. Time deposits are grouped by maturity
lengths and their fair value is calculated by discounting future cash flows with the market
interest rate. For the deposits and negotiable certificates of deposits with the repayment
period within one year, the carrying value approximates fair value due to theshort-term maturities. The fair value is classified as a Level 2 fair value.
Borrowed Money
For borrowed money, the present value is calculated by discounting the total principal andinterest of the borrowings divided into certain periods by the interest rate that takes into
account the remaining term of the borrowing and credit risk. For borrowed money withvariable interest rates, the fair value approximates the carrying value because it reflects themarket interest rate in the short term and the credit status of the Company and its
consolidated subsidiaries has not changed significantly since inception. Also, for borrowed
money that mature within one year, the carrying value approximates fair value due to its
short-term maturities. The fair value is classified as a Level 2 fair value.
- 45 -

Derivatives
Derivatives whose unadjusted quoted prices in active markets are available are categorized
as Level 1. This mainly includes transactions of bond futures and interest rate futures.
However, since most derivatives transactions are over-the-counter transactions and there isno published quoted price, the fair value is calculated using valuation techniques such as thediscounted present value method and the Black Scholes model according to the type oftransaction and the period until maturity. The main inputs used in these valuation techniques
are interest rates, exchange rates, volatility, etc. If unobservable inputs are not used or theireffects are not significant, they are classified as Level 2, and include plain vanilla interest
rate swap transactions, foreign exchange contract transactions, etc. Derivatives whose fairvalues are measured by using significant unobservable inputs are categorized as Level 3.

(Note 2) Information about Level 3 of financial instruments measured at fair value(1) Quantitative information on significant unobservable inputs
As of March 31, 2024
Categories

Valuationtechniques

Significant
unobservable
inputsScope of inputs

Weighted
average of
inputsSecurities (available-for-salesecurities)

Corporate bonds

Discounted cash
flow method(*1)

Probability ofbankruptcy
22.3%
Loss rate at thetime of
20.0% - 100.0%
bankruptcy

22.3%
49.5%

(*1) For some corporate bonds, the estimated amount of loan losses is calculated based on theestimated amount of collateral and guarantees, etc. and the fair value is the amount obtainedby deducting the estimated amount of loan losses from the corporate bond value.

As of March 31, 2023
Categories

Valuationtechniques

Significant
unobservable
inputsScope of inputs

Weighted
average of
inputsSecurities (available-for-salesecurities)

Corporate bonds

Discounted cash
flow method(*1)

Probability ofbankruptcy
27.3%
Loss rate at thetime of
20.0% - 100.0%
bankruptcy

27.3%
50.8%

(*1) For some corporate bonds, the estimated amount of loan losses is calculated based on theestimated amount of collateral and guarantees, etc. and the fair value is the amount obtainedby deducting the estimated amount of loan losses from the corporate bond value.

(2) A reconciliation from the beginning balances to the ending balances and gains or losses on
valuation of financial assets and financial liabilities held at the end of the reporting period
included in profit or loss for the period- 46 -

Millions of Yen
Securities
March 31, 2024

Derivativetransactions

Available-for-saleCorporate bonds

Credit derivativetransactions (*4)¥ 190

¥ (27)

Recorded in profit or loss (*1)

(19)

(9)

Recorded in othercomprehensive income (*2)

4-Purchases, sales, issuances,and settlements

(92)

-

Transfer into Level 3 (*3)

85-Transfer out of Level 3--

Beginning balance
Profit or loss or othercomprehensive income for theperiodEnding balance¥168¥ (36)

Gains or losses on valuation offinancial assets and financial
liabilities held at the end of thereporting period included in
profit or loss for the period (*1)¥-

¥ (36)- 47 -

Millions of Yen
Securities
March 31, 2023

Derivativetransactions

Available-for-saleCorporate bonds

Credit derivativetransactions (*4)¥ 28

¥ (16)

Recorded in profit or loss (*1)

(16)

(11)

Recorded in othercomprehensive income (*2)

(3)-

Purchases, sales, issuances,and settlements

(40)

-

Transfer into Level 3 (*3)

221-Transfer out of Level 3--

Beginning balance
Profit or loss or othercomprehensive income for theperiodEnding balance¥190¥ (27)

Gains or losses on valuation offinancial assets and financial
liabilities held at the end of thereporting period included in
profit or loss for the period (*1)¥-

¥ (27)(*1) Included in “Other operating income” and “Other operating expenses” in the Consolidated
Statement of Income.
(*2) Included in the “Unrealized gain (loss) on available-for-sale securities” under “Other
Comprehensive Income” in the Consolidated Statement of Comprehensive Income.
(*3) These are privately placed guaranteed bonds held by the Bank, and due to the significant
deterioration in the credit condition of the issuer of the bonds, the holding classification of thebond has been changed from held -to-maturity to available-for-sale.
(*4) Net receivables, payables, profits and losses arising from derivatives transactions arepresented as net amounts, and items that constitute net payables and losses in total arepresented in parentheses.
Thousands of U.S. Dollars
Securities
March 31, 2024

Derivativetransactions

Available-for-saleCorporate bonds

Credit derivativetransactions (*4)

$ 1,255$ (178)

Recorded in profit or loss (*1)

(125)

(60)

Recorded in othercomprehensive income (*2)

27-

Purchases, sales, issuances,and settlements

(608)

-

Transfer into Level 3 (*3)

561-Transfer out of Level 3--

Beginning balance
Profit or loss or othercomprehensive income for theperiod- 48 -

Ending balance

$

1,110

$ (238)-$ (238)

Gains or losses on valuation offinancial assets and financial
liabilities held at the end of thereporting period included in
profit or loss for the period (*1)(*1) Included in “Other operating income” and “Other operating expenses” in the Consolidated
Statement of Income.
(*2) Included in the “Unrealized gain (loss) on available-for-sale securities” under “Other
Comprehensive Income” in the Consolidated Statement of Comprehensive Income.
(*3) These are privately placed guaranteed bonds held by the Bank, and due to the significant
deterioration in the credit condition of the issuer of the bonds, the holding classification of thebond has been changed from held-to-maturity to available-for-sale.
(*4) Net receivables, payables, profits and losses arising from derivatives transactions arepresented as net amounts, and items that constitute net payables and losses in total arepresented in parentheses.
(3) A description of valuation processes used for fair value measurements
The risk management division of the Group has established policies and procedures formeasuring fair value, and each trading division measures fair value following the policies
and procedures. A risk management division verifies whether the fair value obtained ismeasured using valid valuation techniques and inputs as well as whether they are classified
into an appropriate level of the fair value hierarchy.
In measuring fair value, the Company uses a valuation model that most appropriatelyreflects the nature, characteristics and risks of each asset. In addition, when using quoted
prices obtained from third parties, the Company verifies whether the prices are valid using
appropriate methods, such as confirming the valuation techniques and inputs used andcomparing them with the fair value of similar financial instruments.
(4) A narrative description of sensitivity of the fair value measurement to changes in significant
unobservable inputs
Significant unobservable inputs used in measuring the fair value of the corporate bonds areprobability of bankruptcy and loss rate at the time of bankruptcy. Significant increases(decreases) in any of those inputs in isolation would result in a significantly lower (higher)
fair value measurement. Generally, a change in the assumption used for probability ofbankruptcy is accompanied by a directionally similar change in the assumption used for loss
rate at the time of bankruptcy.
(Note 3) Securities, etc. that do not have a market price and investment in partnerships are as follows
and are not included in “Securities (available-for-sale securities)” in the table of financial
instruments measured at fair value.

Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Securities, etc. that do not have a market price(*1, *2)
Investment in partnerships (*3)

¥ 5,989
13,724¥ 6,058
15,934$

Total¥ 19,713¥ 21,992$ 130,196- 49 -

39,55590,641

(*1) Securities, etc. that do not have a market price are not subject to fair value disclosure inaccordance with Paragraph 5 of the “Implementation Guidance on Disclosures about Fair
Value of Financial Instruments” (ASBJ Guidance No. 19, March 31, 2020).
(*2) Impairment losses of ¥1 million ($7 thousand) and ¥59 million are recorded for unlisted
equity securities for the years ended March 31, 2024 and 2023, respectively.
(*3) Investment in partnerships are not subject to fair value disclosure in accordance with Article
24-16 of the "Implementation Guidance on Accounting Standard for Fair Value Measurement"(ASBJ Guidance No. 31, June 17, 2021).
(Note4) Maturity Analysis for Financial Assets, Securities and Financial Liabilities with Contractual
Maturities

March 31, 2024
Securities:
Held-to-maturity securities:
Debt securities—Japanese
corporate bonds
Available-for-sale securities
with contractual maturities:
Debt securities:
Japanese government bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other
Loans and bills discounted *1
Total

Due in1 Yearor Less

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years¥¥¥

14,06636,197

¥

4,277

222

-

-

135,000

45,50025,55917,822
12,1875,548
705
812,259

188,149
103,862
22,44048,4607,089
1,228,548

315,51133,40015,403
20,169971
979,290

101,950
108,859
26,897711
1,744,623¥ 888,146¥ 1,634,745¥ 1,504,021¥ 2,028,762

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

March 31, 2024

Due in1 Yearor Less

Deposits
Borrowed money¥ 6,053,074
122,047¥ 335,658
224,280

¥3
-

¥

-

Total

¥ 6,175,121¥ 559,938

¥3

¥

-

- 50 -

March 31, 2023
Securities:
Held-to-maturity securities:
Debt securities—Japanese
corporate bonds
Available-for-sale securities
with contractual maturities:
Debt securities:
Japanese government bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other
Loans and bills discounted *2Total

Due in1 Yearor Less

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years¥¥¥

13,356

40,116

¥

4,512

76

-

-

135,000

45,50018,9892,739
19,707
1,371
778
826,542

148,977
112,585
32,10645,832
8,479
1,197,485

366,029
42,33925,471
20,514
1,019
966,43067
109,478
101,842
32,254776
1,627,349¥ 883,482¥ 1,585,580¥ 1,561,314¥ 1,917,342

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

March 31, 2023

Due in1 Yearor Less

Deposits
Borrowed money¥ 5,840,213
223,832¥ 426,766
105,669

¥2
-

¥

-

Total

¥ 6,064,045¥ 532,435

¥2

¥

-

- 51 -

March 31, 2024
Securities:
Held-to-maturity securities:
Debt securities—Japanese
corporate bonds
Available-for-sale securities
with contractual maturities:
Debt securities:
Japanese government bonds
Japanese local government
bonds
Japanese corporate bonds
Foreign bonds
Investment trust
Other
Loans and bills discounted *1

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due in1 Yearor Less$92,900$

239,066 $28,248Due after
10 Years

$

1,466

-

-

891,619

300,509

168,807
117,707
80,49036,642
4,656
5,364,632

1,242,646
685,965
148,207
320,058
46,8208,114,048

2,083,819
220,593
101,730
133,208
6,413
6,467,803

673,337
718,968
177,6444,696
11,522,508$ 5,865,834$10,796,810 $ 9,933,433$13,399,128

March 31, 2024

Due in1 Yearor Less

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

Due after
10 Years

Deposits
Borrowed money$39,978,033
806,070$2,216,881
1,481,276

$20
-

$

-

Total

$40,784,103$3,698,157

$20

$

-

Total

*1 Loans and bills discounted whose cash flows cannot be estimated, such as “legal bankruptcy,”“virtual bankruptcy,” and “possible bankruptcy” loans amounting to ¥60,976 million($402,721 thousand) as of March 31, 2024 and loans and bills discounted with no contractual
maturities, amounting to ¥12,719 million ($84,004 thousand) as of March 31, 2024, are notincluded.
*2 Loans and bills discounted whose cash flows cannot be estimated, such as “legal bankruptcy,”“virtual bankruptcy,” and “possible bankruptcy” loans amounting to ¥62,897 million as of March
31, 2023 and loans and bills discounted with no contractual maturities, amounting to¥14,745 million as of March 31, 2023, are not included.

Please see Note 14 for annual maturities of borrowed money.

- 52 -

27.

COMMITMENTS AND CONTINGENT LIABILITIESCommitment line contracts on overdrafts and loans are agreements to make loans to customers
when they apply for borrowing up to a prescribed amount as long as there is no violation of any
condition in the contracts.
The total amounts of unused open commitments as of March 31, 2024 and 2023, were ¥1,161,754
million ($7,672,901 thousand) and ¥1,262,434 million, respectively. Multi-purpose accounts includedin the unused open commitments as of March 31, 2024 and 2023, were ¥480,194 million($3,171,481 thousand) and ¥509,460 million, respectively. The amounts of unused commitments
whose original contract terms were within one year or unconditionally cancelable at any time as ofMarch 31, 2024 and 2023, were ¥1,137,585 million ($7,513,275 thousand) and ¥1,233,950 million,
respectively.
Since many of these commitments are expected to expire without being drawn upon, the total amountof unused commitments does not necessarily represent actual future cash flow requirements. Many ofthese commitments have clauses enabling the Bank and certain subsidiaries to reject the loans tocustomers or reduce the contract amounts of commitment, in the event monetary conditions havechanged and the Bank and certain subsidiaries need to secure claims, or other considerable events
have occurred.
In addition, if necessary, the Bank and certain subsidiaries can request the customers to pledge
collateral such as premises and securities at the execution of the contracts. After execution, the Bankand certain subsidiaries periodically evaluate the customers' financial position based upon the Bank's
internal policy, and take necessary measures to manage the credit exposures, such as revising theterms of contracts or securing the claims.

- 53 -

28.

DERIVATIVE INFORMATIONThe Bank enters into swaps related to interest rates, foreign exchange forward contracts, swap andoption contracts related to currencies, over-the-counter bond options and stock index options
contracts related to securities.
Derivative Transactions to Which Hedge Accounting Is Not Applied as of March 31, 2024 and2023

March 31, 2024
Over-the-counter:
Interest-related contracts:
Interest rate swap:
Fixed rate receipt, variable
rate payment
Variable rate receipt, fixed
rate payment
Over-the-counter:
Currency-related contracts:
Currency swap
Foreign exchange forward:
Sell
Buy
Currency option:
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Credit derivative contracts:
Credit default options
Sell
Buy
Credit default swap
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Earthquake derivative:
Sell
Buy

Contract
AmountMillions of Yen
Contract
AmountDue after
One Year
Fair Value

¥

¥

9,951

9,951

¥

(79 )

Unrealized
Gains(Losses)

¥

(79 )

9,951

9,951

377

377

252,739

186,324(555 )

576

63,77013,808736
529(1,348 )374(1,348 )374

51,72056,464

39,487
43,823(2,410 )
2,412

1,552
(1,062 )

-

-

-

-

-

-

-

-

2,319

2,319

(36)

(36)

-

-

-

-

260
260

-

(2)
2

-

- 54 -

March 31, 2023
Over-the-counter:
Interest-related contracts:
Interest rate swap:
Fixed rate receipt, variable
rate payment
Variable rate receipt, fixed
rate payment
Over-the-counter:
Currency-related contracts:
Currency swap
Foreign exchange forward:
Sell
Buy
Currency option:
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Credit derivative contracts:
Credit default options
Sell
Buy
Credit default swap
Sell
Buy
Other:Sell
Buy

Contract
AmountMillions of Yen
Contract
AmountDue after
One Year
Fair Value¥ 10,299¥ 10,299

10,29910,299307

307

313,002

243,397(4,007 )(2,617 )73,606
17,298

559
491

263
(124 )

263(124 )

59,71961,78646,02948,716(3,304 )
3,301

1,179
(596 )

-

-

-

-

-

-

-

-

1,895

1,895

(27)

(27)

-

-

-

-

- 55 -¥

26

Unrealized
Gains(Losses)¥

26

Contract
AmountMarch 31, 2024
Over-the-counter:
Interest-related contracts:
Interest rate swap:
Fixed rate receipt, variable
rate payment
Variable rate receipt, fixed
rate payment
Over-the-counter:
Currency-related contracts:
Currency swap
Foreign exchange forward:
Sell
Buy
Currency option:
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Credit derivative contracts:
Credit default options
Sell
Buy
Credit default swap
Sell
Buy
Other:Sell
Buy
Over-the-counter:
Earthquake derivative:
Sell
Buy

$

65,722Thousands of U.S. Dollars
Contract
AmountDue after
One Year
Fair Value$

65,722$

Unrealized
Gains(Losses)(522 ) $(522 )

65,72265,722

2,490

2,490

1,669,236

1,230,592(3,666 )3,804

421,174
91,196

4,861
3,494

(8,903 )2,470(8,903 )
2,470

341,589
372,921260,795
289,433(15,917 )
15,930

10,250(7,014 )

-

-

-

-

-

-

-

-

15,31615,316

(238)

(238)

-

-

-

-

1,717
1,717

-

(13)
13

-

Notes: 1. Derivative transactions are valued at market and the gains/losses are recognized in the
consolidated statement of income.
2. There were no transactions applicable for stock-related contracts, bond-related contracts,
and commodities for the years ended March 31, 2024 and 2023.
Derivative Transactions to Which Hedge Accounting Is Applied as of March 31, 2024 and 2023

March 31, 2024

Main
HedgedItem

Principle method
Interest rate swap:
Variable rate receipt, fixed
rate payment

Deposits- 56 -

Millions of Yen
Contract
AmountContract
Due after
AmountOne Year¥

45,423¥ 45,423

Fair Value¥ 3,247

29.

Contract
AmountDue after
One Year

Fair Value¥ 40,059¥

March 31, 2023

Main
HedgedItem

Principle method
Interest rate swap:
Variable rate receipt, fixed
rate payment

Deposits¥

March 31, 2024

Main
Hedgeditem

Thousands of U.S. Dollars
Contract
AmountContract
Due after
AmountOne Year

Fair Value

Principle method
Interest rate swap:
Variable rate receipt, fixed
rate payment

Deposits$ 300,000$ 21,445

Contract
Amount40,059$300,000167

COMPREHENSIVE INCOME
The components of other comprehensive loss for the years ended March 31, 2024 and 2023, were as
follows:

Millions of Yen
2024
2023
Unrealized gain (loss) on available-for-salesecurities:
Gains arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Deferred gain on hedges:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
Defined retirement benefit plans:
Adjustments arising during the year
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effectTotal
Total other comprehensive income (loss)- 57 -

Thousands of
U.S. Dollars
2024¥ 50,367
1,477
51,844(15,512 )¥ (32,027 )
3,163(28,864 )8,558$ 332,653
9,755
342,408(102,450 )

36,332(20,306 )239,958

4,513(1,434)3,079(921 )

167
167
(50 )

29,807(9,471)
20,336(6,083 )

2,158

117

14,2539,816(392 )
9,424(2,820 )(2,042 )(1,944 )(3,986 )
1,193

64,830(2,589 )62,241(18,625 )

6,604(2,793 )43,616¥ 45,094¥ (22,982 )$ 297,827

30.

PER SHARE INFORMATIONa.

Net Income Per Share
Reconciliation of the differences between basic and diluted net income per share ("EPS") for theyears ended March 31, 2024 and 2023 was as follows:Year Ended March 31, 2024
Net income attributable toowners of parent
Amount not attributable tocommon shareholders
Basic EPS―Net income available
to common shareholders
Effect of dilutive securities—Stockacquisition rights
Diluted EPS―Net income forcomputation

Millionsof YenNet Income
Attributableto Ownersof Parent

Thousandsof Shares

Yen

U.S. Dollars

WeightedAverage
Shares

EPS¥ 19,318
19,31836,412¥ 530.55$ 3.50

¥

$

-

¥

-

-

-

Year Ended March 31, 2023
Net income attributable toowners of parent
Amount not attributable tocommon shareholders
Basic EPS―Net income available
to common shareholders
Effect of dilutive securities—Stockacquisition rights
Diluted EPS―Net income forcomputation¥ 18,630
18,63036,835¥ 505.79

25¥ 18,630

36,860¥ 505.44

Note: Diluted net income per share for the year ended March 31, 2024 is not presented
because there are no dilutive shares.

- 58 --b.

Net Assets Per Share
Net assets per share as of March 31, 2024 and 2023, were ¥12,239.21 ($80.83) and 10,626.44,
respectively.
Net assets per share of common stock as of March 31, 2024 and 2023, were calculated basedon the following:Thousands ofMillions of Yen
U.S. Dollars
2024
2023
2024
Total net assets
Deductions from total net assets:
Noncontrolling interests¥ 450,790¥ 392,561$ 2,977,280

4,120

3,837

27,211

Net assets attributable to common stock at
the end of the fiscal year

¥ 446,670¥ 388,724$ 2,950,069

Number of shares of common stockat the end of the fiscal year used forthe calculation of net assets per share(shares in thousands)

36,49536,581- 59 -

31.

Revenue Recognition

Disaggregation of revenue from contracts with customers
Information regarding disaggregation of revenue from contracts with customers for the years ended March
31, 2024 and 2023, was as follows.

March 31, 2024

Millions of Yen
Reportable Segment
Banking
Lease
Total

Interest income
Trust fees
Fees and commissions
Deposit and lending
service
Foreign exchanges service
Securities-related service
Guarantee service
Credit card service
Other operating income
Other income¥59,4143
20,398－1,155
14,303

Income¥95,273

March 31, 2023¥

¥ 59,573
3
20,398¥ 5,465－
7,054¥ 65,038
3
27,452

－
－
－
－
－

3,711
3,696
3,094
1,934

27,177
13－
28,332
14,316

－
－
1,595
159
2,718
2,715
72

3,711
3,696
4,689
2,093
2,718
31,047
14,388¥27,349¥122,622¥15,306¥137,928

Other

Total

Millions of Yen
Reportable Segment
BankingLease
Total¥53,786
1
19,936
3,803
3,739
2,265
2,013
－
1,831
4,623

Income¥80,177

Total

159
－
－

3,711
3,696
3,094
1,934

Interest income
Trust fees
Fees and commissions
Deposit and lending
service
Foreign exchanges service
Securities-related service
Guarantee service
Credit card service
Other operating income
Other income

Other

¥

139
－
－

¥ 53,925
1
19,936¥ 5,987－
6,473¥ 59,912
1
26,409－－－－－26,800
9

3,803
3,739
2,265
2,013
－
28,631
4,632

－
－
1,687
138
2,656
1,843
69

3,803
3,739
3,952
2,151
2,656
30,474
4,701¥26,948¥107,125¥14,372¥121,497- 60 -

March 31, 2024

Millions of U.S. Dollars
Reportable Segment
Other
Banking
Lease
Total

Interest income
Trust fees
Fees and commissions
Deposit and lending
service
Foreign exchanges service
Securities-related service
Guarantee service
Credit card service
Other operating income
Other income$392,405
20
134,720

Income

$

Total

1,050
－
－

$393,455
20
134,720$36,094－
46,589$429,54920
181,30924,51024,411
20,435
12,773－
7,628
94,465－－－－－
179,49386

24,51024,411
20,435
12,773－
187,12194,551－－
10,534
1,050
17,951
17,931476

24,51024,41130,96913,823
17,951205,052
95,027$629,238$180,629$809,867$101,090$910,957*1. The above table also includes revenue based on the ASBJ Statement No. 10 “Accounting Standards
for Financial Instruments.”*2. “Other” refers to business segments that are not included in the reporting segment, such as financial
instruments transaction and credit card service.
*3. The difference between the “total” amount in the above table and the amount recorded in the
consolidated statement of income is mainly the elimination of intersegment transactions.

32.

SUBSEQUENT EVENTSAppropriation of Retained Earnings
On May 9, 2024, the Board of Directors resolved an appropriation of retained earnings as follows:

Year-end cash dividends—¥90.00 ($0.59) per shareof common stock

Millions of Yen

Thousands of
U.S. Dollars¥ 3,285$21,696

Repurchase of treasury stock
At the Board of Directors meeting held on July 26, 2024, the Company resolved on matters related to
the repurchase of treasury stock in accordance with the provisions of Article 156 of the Companies
Act, as applied by replacing the relevant terms pursuant to the provisions of Article 165, Paragraph 3of the same act.
(1) Reason
For the purpose of achieving sustainable growth of the Group and medium- to long-term
improvement of corporate value by enhancing shareholder returns(2) Class of stock to be acquired: Common stock(3) Total number of shares to be acquired: 620,000 shares (maximum) (1.698% of the total number
of issued shares excluding treasury stock)- 61 -

(4) Total amount of share acquisition costs: ¥3,100,000,000 ($20,474 thousand) (maximum)(5) Acquisition period: July 29, 2024 to September 20, 2024
(6) Method of acquisition: Market purchase on the Tokyo Stock Exchange

33.

SEGMENT INFORMATION

Under ASBJ Statement No. 17, “Accounting Standard for Segment Information Disclosures” and ASBJ
Guidance No. 20, “Guidance on Accounting Standard for Segment Information Disclosures,” an entity isrequired to report financial and descriptive information about its reportable segments. Reportable segments
are operating segments or aggregations of operating segments that meet specified criteria. Operating
segments are components of an entity about which separate financial information is available and suchinformation is evaluated regularly by the chief operating decision maker in deciding how to allocate
resources and in assessing performance. Generally, segment information is required to be reported on thesame basis as is used internally for evaluating operating segment performance and deciding how toallocate resources to operating segments.

- 62 -

a.

Description of Reportable Segments(1) Method for determining the reportable segments
The Group's reportable segments are those for which separate financial information is available and regular evaluation by the Group's management is being
performed in order to decide how resources are allocated among the Group.
The Group provides banking services-based comprehensive financial services and leasing business. The Group consists of two reportable segments: banking
business and lease business.
(2) Types of products and services belonging to each reportable segment
The banking business is operated by The Juroku Bank, Ltd. and provides various services such as deposit-taking and lending services, trading securities,
securities investment, domestic exchange, foreign exchange, managing bonds, a derivatives business and other related businesses at headquarters andbranches of The Juroku Bank, Ltd. In addition, consolidated subsidiaries operate credit guarantee business and supplement the banking business.
The lease business is operated by Juroku Lease Co., Ltd. It provides leasing business to meet local customers' needs.

b.

Methods of Measurement for the Amounts of Income, Profit, Assets and Other Items for Each Reportable Segment
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, "Summary of Significant Accounting Policies."c.

Information about Income, Profit, Assets, Liabilities and Other Items
Millions of Yen
2024
Banking

Reportable Segment
Lease

Total

Other

Total

Reconciliations

Consolidated

Ordinary income:(1) Outside customers(2) Intersegment transactions¥

94,339935¥ 27,073
275¥ 121,412
1,210

¥

7,424
7,882

¥ 128,836
9,092¥(9,092)¥ 128,836
-

Total

¥

95,274¥ 27,348¥ 122,622¥ 15,306¥ 137,928¥(9,092)¥ 128,836

Segment profit
Segment assets
Other:
Depreciation
Amortization of goodwill
Interest income
Interest expense
Allowance for loan losses
Increase in premises and equipment
and intangible assets¥

26,5297,463,167¥¥

26,9897,551,187¥ 6,287
339,153¥

33,276
7,890,340¥ (5,368)(355,301)

460
88,020¥27,908
7,535,039

2,548
245
59,413
6,560
482

473
160
186
57

3,021
245
59,573
6,746
539

149
207
5,465
48
169

3,170
452
65,038
6,794
708

105
(5,528)
(177)
-

3,275
452
59,510
6,617
708

3,778

203

3,981

144

4,125

131

4,256

- 63 -

Notes: 1. Ordinary income represents total income less certain extraordinary income included in “Other income” in the accompanying consolidated statement ofincome.
2. “Other” includes business segments of financial instruments business and credit card service.
3. Reconciliations mainly represent the elimination of intersegment transactions.
4. Segment profit is adjusted to reconcile to income before income taxes less certain extraordinary items in the accompanying consolidated statement ofincome.
5. NOBUNAGA Succession Inc., newly established on July 3, 2023, is included in “Other.”
Millions of Yen
2023
Reportable Segment
Banking
Lease

Total

Other

Total

Reconciliations

Consolidated

Ordinary income:(1) Outside customers(2) Intersegment transactions¥

79,321856¥ 26,664
285¥ 105,985
1,141

¥

6,700
7,672

¥ 112,685
8,813¥(8,813)¥ 112,685
-

Total

¥

80,177¥ 26,949¥ 107,126¥ 14,372¥ 121,498¥(8,813)¥ 112,685

Segment profit
Segment assets
Other:
Depreciation
Amortization of goodwill
Interest income
Interest expense
Allowance for loan losses
Increase in premises and equipment
and intangible assets¥

26,277
7,122,697¥¥

26,704
7,205,081¥ 6,421331,836¥

33,125
7,536,917¥ (5,862)(346,360)

427
82,384¥27,263
7,190,557

2,257
245
53,786
2,703
1,301

512
139
184
35

2,769
245
53,925
2,887
1,336

156
207
5,987
25
146

2,925
452
59,912
2,912
1,482

113
(6,015)
(143)
-

3,038
452
53,897
2,769
1,482

2,104

247

2,351

196

2,547

39

2,586

Notes:
1. Ordinary income represents total income less certain extraordinary income included in “Other income” in the accompanying consolidated statement ofincome.
2. “Other” includes business segments of financial instruments business and credit card service.
3. Reconciliations mainly represent the elimination of intersegment transactions.
4. Segment profit is adjusted to reconcile to income before income taxes less certain extraordinary items in the accompanying consolidated statement ofincome.
5. Kanda Machi Okoshi Co., Ltd., newly established on April 1, 2022, is included in “Other.”- 64 -

Thousands of U.S. Dollars
2024
Banking

Reportable Segment
Lease

Total

Other

Total

Reconciliations

Consolidated

Ordinary income:(1) Outside customers(2) Intersegment transactions$

623,070
6,175$ 178,806
1,816$

801,876
7,991$

49,032
52,058$

850,908
60,049$(60,049 )$

850,908
-

Total

$

629,245$ 180,622$

809,867$ 101,090$

910,957$(60,049 )$

850,908

Segment profit
Segment assets
Other:
Depreciation
Amortization of goodwill
Interest income
Interest expense
Allowance for loan losses
Increase in premises and equipment
and intangible assets$ 175,213
49,291,110

$

3,038
581,336$ 178,251
49,872,446$$

219,774
52,112,410$ (35,453 )(2,346,615 )$ 184,321
49,765,795

16,8281,618
392,398
43,326
3,183

3,124
1,057
1,229
377

19,952
1,618
393,455
44,555
3,560

985
1,367
36,094317
1,116

20,937
2,985
429,549
44,872
4,676

693(36,510)(1,170)-21,6302,985
393,039
43,702
4,676

24,952

1,341

26,293951

27,244865

28,10941,5232,239,964

Notes: 1. Ordinary income represents total income less certain extraordinary income included in "Other income" in the accompanying consolidated statement ofincome.
2. "Other" includes business segments of financial instruments business, credit cards service.
3. Reconciliations mainly represent the elimination of intersegment transactions.
4. Segment profit is adjusted to reconcile to income before income taxes less certain extraordinary items in the accompanying consolidated statement ofincome.
5. NOBUNAGA Succession Inc., newly established on July 3, 2023, is included in the "Other".

- 65 -

d.

Associated Information(1) Information about services
Millions of Yen
2024

Ordinary income—Outside customers

LendingServiceSecurities
Services

Leasing

Other

Total

¥ 40,695¥ 33,686¥ 26,901¥ 27,554¥ 128,836

Millions of Yen
2023
LendingServiceSecurities
Services

Leasing

Other

Total

¥ 40,548¥ 18,318¥ 26,517¥ 27,302¥ 112,685

LendingServiceThousands of U.S. Dollars
2024
Securities
Services
LeasingOther$268,774$222,482

Ordinary income—Outside customers

Ordinary income—Outside customers$177,670$181,982

Total$ 850,908(2) Geographical information(a) Operating Revenues
This information is not presented because the Group's revenues in Japan account for
more than 90% of revenues in the consolidated statement of income.
(b) Property and Equipment
This information is not presented because the Group's property and equipment in Japanaccount for more than 90% of property and equipment in the consolidated balance
sheet.
(3) Information by major customer
This information is not presented because there are no customers for which income accountfor more than 10% of revenues in the consolidated statement of income.

- 66 -

(4) Information about impairment loss by reportable segment

Millions of Yen
2024
Banking
Impairment loss on long-lived
assets

¥

12

Lease

¥

Elimination/
Corporate

Other

-

¥

-

¥

-

Total

¥

12

Millions of Yen
2023

Impairment loss on long-lived
assets

Total

¥

-

¥ 150

Thousands of U.S. Dollars
2024
Elimination/
Lease
Other
Corporate

Total

Lease

¥ 150

¥

Banking
Impairment loss on long-lived
assetsElimination/
Corporate

Banking

$

79

$

Other

-

-

¥

$

-

-

$

-

$

79

(5) Information about goodwill and negative goodwill by reportable segment
Millions of Yen
2024

Amortization of goodwill
Goodwill at March 31, 2024
Gain on negative goodwill

Banking

Lease

¥ 245
1,651
-

¥

Other
-

¥ 207
1,090
-

Elimination/
Corporate
¥

Total

-

¥ 452
2,741
-

Elimination/
Corporate

Total

Millions of Yen
2023

Amortization of goodwill
Goodwill at March 31, 2023
Gain on negative goodwill

Banking

Lease

¥ 245
1,896
-

¥

Banking
Amortization of goodwill
Goodwill at March 31, 2024
Gain on negative goodwill$ 1,618
10,904
-

Other

-

¥ 452
3,193
-

Thousands of U.S. Dollars
2024
Elimination/
Lease
Other
Corporate

Total

$

-

-

¥ 207
1,297
-

$ 1,367
7,199
-

¥

$

Note: “Other” represents goodwill related to the financial instruments business.

*****- 67 --$ 2,985
18,103-