(TRANSLATION)"The Business Report and the accompanying supplemental schedules" referred to in the "Other Information" section of the attached“INDEPENDENT AUDITOR'S REPORT“ is not included in this English translation of financial statements.

Consolidated Balance Sheet as of the End of the 162nd Fiscal Year (March 31, 2023)(Unit: Millions of yen)Accounts title

AmountAccounts title( Assets )Amount( Liabilities )Cash and due from banks

6,333,711

Call loans and bills bought

268,146

Negotiable certificates of deposit

Monetary claims bought

24,747

Call money and bills soldTrading assets

3,266

Payables under repurchase agreements

66,194
161,689

Deposits

17,777,124
205,270
1,950,420

Securities

2,523,421

Payables under securities lending transactions

Loans and bills discounted

14,094,314

Trading liabilities

52

Foreign exchanges

23,195

Borrowed money

2,215,016

Lease receivables and investment assets

74,740Foreign exchanges

541

Other assets

218,411

Due to trust account34,603

Property, plant and equipment

141,254

Other liabilities

253,098

Buildings,net

53,427

Provision for bonusesLand

78,175

Provision for directors’ bonuses

22

Construction in progress

1,686

Provision for share-based compensation

157

Other

7,965

Net defined benefit liability

652

14,770

Provision for reimbursement of deposits

14,485

Provision for contingent losses

507

284

Reserves under special laws

25
73

Intangible assets
Software
Other

4,161

1,772

Net defined benefit asset

37,623

Deferred tax liabilities

Deferred tax assets

27,692

Deferred tax liabilities for land revaluation

16,270

Customers' liabilities for acceptances and guarantees

34,069Acceptances and guarantees

34,069Allowance for loan losses(72,569)

Total liabilities

22,721,722( Equity )TOTAL

23,746,795－1－

Capital stock

215,628

Capital surplus

177,244

Retained earnings

596,145

Total Shareholders' equity

989,019

Valuation difference on available-for-sale securities(11,476)

Deferred gains or losses on hedges

3,457

Revaluation reserve for land

36,360Foreign currency translation adjustment779

Remeasurements of defined benefit plans

1,157

Accumulated other comprehensive income

30,279Noncontrolling interests

5,774

Total equity

1,025,072

TOTAL

23,746,795

(TRANSLATION)

Consolidated Statement of Income for the 162nd Fiscal Year
From April 1, 2022 to March 31, 2023
Accounts title

AmountOrdinary income:Interest income
Interest on loans and bills discounted
Interest and dividends on securities
Interest on call loans and bills boughtInterest on due from banks
Other interest income
Trust fees
Fees and commissions
Trading income
Other operating income
Other income
Recovery of claims previously charged off
Other
Ordinary expenses:
Interest expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money and bills soldInterest on payables under repurchase agreements
Interest on payables under securities lending transactions
Interest on borrowed money
Other interest expenses
Fees and commissions
Trading expenses
Other operating expenses
General and administrative expenses
Other expenses
Loan losses
Other
Ordinary profit
Extraordinary income
Gain on disposals of non-current assets
Gain on return of assets from retirement benefits trust
Extraordinary losses
Loss on disposals of non-current assets
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income
Net income attributable to noncontrolling interests
Net income attributable to owners of parent－2－

173,957
136,279
24,862
1,391
6,552
4,871
266
65,0501,317
35,060
7,424
2,331
5,092
29,124
10,675
7
3,007
566
2,874
3,268
8,723
13,35315
44,392
107,297
18,306
13,109
5,197
201
2,154
1,699
24,384(2,576)(Unit: Millions of yen)

283,078

212,489

70,5892,355
1,699
71,24521,80749,43850
49,387

(TRANSLATION)

Consolidated Statement of Changes in Equity for 162nd Fiscal Year (from April 1, 2022 to March 31, 2023)( Unit: One million yen )Shareholders' equity
Capital stock

Balance at the beginning ofcurrent period

215,628

CapitalsurplusRetainedearnings

177,244

Total
Shareholders'equity568,314

961,187(21,682)(21,682)

Net income attributable toowners of the parent

49,38749,387

Reversal of revaluation
reserve for land

126

126

Changes in the year
Cash dividends

Net changes in the year

Total net changes in the year
Balance at the end ofcurrent period－－

27,831

27,831

215,628

177,244596,145

989,019

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities

Balance at the beginning ofcurrent period

7,818

Deferred gains
Revaluation
or losses onreserve for land
hedges

3,020

36,487

Foreigncurrencytranslation
adjustment

Total

accumulated Non-controlling
Remeasurementsinterestof defined benefit
other
plans
comprehensive

Total equity

income421

2,659

50,406

5,953

1,017,547

Changes in the year
Cash dividends(21,682)

Net income attributable toowners of the parent

49,387

Reversal of revaluation
reserve for land126

Net changes in the year

(19,294)

437

(126)

358

(1,501)(20,126)(179)(20,306)

Total net changes in the year

(19,294)

437

(126)

358

(1,501)(20,126)

(179)

7,525

Balance at the end ofcurrent period(11,476)

3,457

36,360779

1,157

30,2795,774

1,025,072－3－

Notes to Consolidated Financial Statements
The amount is stated by rounding down to the nearest million yen.
The definitions of subsidiaries, subsidiary corporations, etc. and affiliated corporations, etc. are in accordance with Article 2, Paragraph 8 of the
Banking Act and Article 4-2 of the Ordinance for Enforcement of the Banking Act.

Policy in preparing consolidated financial statements
1. Scope of consolidation
７(1) Consolidated subsidiaries and subsidiary corporations, etc.
Names of principal companies
Yokohama Guarantee Co., Ltd.
Hamagin Finance Co., Ltd.
Hamagin Tokai Tokyo Securities Co., Ltd.
(2) Non-consolidated subsidiaries and subsidiary corporations, etc.

8Non-consolidated subsidiaries and subsidiary corporations, etc. are excluded from the scope of consolidation since the impact of their
exclusion is immaterial in making rational judgments concerning the Bank of Yokohama Ltd., (the “Bank”) and its consolidated
subsidiaries (collectively, the “Group”)’s financial position and business performance in terms of assets, ordinary income, net income(amount corresponding to the Bank’s equity position), retained earnings (amount corresponding to the Bank’s equity position) andaccumulated other comprehensive income (amount corresponding to the Bank’s equity position).
2.

Application of the equity method(1) Non-consolidated subsidiaries and subsidiary corporations accounted for using the equity method
None(2) Affiliated corporations, etc. accounted for by the equity method

3

Sky Ocean Asset Management Co., Ltd.
P.T. Bank Resona Perdania
P.T. Resona Indonesia Finance(3) Non-consolidated subsidiaries and subsidiary corporations, etc. not accounted for using the equity method8Non-consolidated subsidiaries and subsidiary corporations, etc. that are not accounted for using the equity method are excluded as there
is no material effect on the Group’s consolidated financial statements in terms of net income (amount corresponding to the Bank’s equity
position), retained earnings (amount corresponding to the Bank’s equity position) and accumulated other comprehensive income (amountcorresponding to the Bank’s equity position).
(4) Affiliated corporations, etc. not accounted for using the equity method4

Affiliates not accounted for using the equity method are excluded as there is no material effect on the Group’s consolidated financial
statements in terms of net income (amount corresponding to the Bank’s equity position), retained earnings (amount corresponding to
the Bank’s equity position) and accumulated other comprehensive income (amount corresponding to the Bank’s equity position).
3. Amortization of goodwill
Amortized by the straight-line method for 10 years.

－4－Accounting Policies
1.

Basis for the valuation of trading assets and trading liabilities and recording income and expenses
Transactions held for the purpose to gain profits by utilizing the short-term fluctuation of interest rates, currency values, financial
product market prices or other indexes, or differences between markets (hereinafter, “specified trading purpose”) are recorded as“trading assets” or “trading liabilities” on the consolidated balance sheet on a trading date basis. The profits and losses from thetransactions are recorded as “trading income” or “trading expenses” on the consolidated statement of income.
The valuation of trading assets and trading liabilities, securities and monetary claims, etc. are stated at fair value at the end of the fiscal
year, and financial derivatives such as swaps, futures and options are stated at amounts that would be settled if the transactions were
terminated at the end of the previous consolidated fiscal year.
Trading income and trading expenses include the interest received and interest paid during the consolidated fiscal year, the gains orlosses resulting from any change in the values of securities and other monetary claims between the end of the previous consolidated
fiscal year and the end of the current consolidated fiscal year, and the gains or losses resulting from any change in the value of thederivatives between the end of the previous consolidated fiscal year and the end of the current consolidated fiscal year, assuming they
are settled at the end of the current consolidated fiscal year.

2.

Valuation standards and methods for securities
Held-to-maturity securities are carried at amortized cost based on the moving average method (straight-line method). Other securities
are stated using the fair value method (sale cost is calculated by the moving average method). However, stocks, etc. for which there isno market value are recorded at cost using the moving average method.
The valuation difference on available-for-sale securities is included directly in net assets, net of applicable income taxes.

3.

Valuation standards and methods for derivative transactions
The valuation of derivative transactions (excluding specified trading purposes) is determined using the fair value method.

4.

Depreciation method of non-current assets(1) Property, plant, and equipment (excluding lease assets)
Property, plant, and equipment are principally depreciated based on the straight-line method.
The range of useful lives is as follows.
Buildings
Equipment

2 to 60 years
2 to 20 years(2) Intangible assets (excluding lease assets)
Intangible assets are depreciated based on the straight-line method. Software for internal use is amortized on a straight-line basis
over the period of internal use (mainly 5 to 7 years) specified by the Group.
(3) Lease assets
Lease assets in “property, plant, and equipment” or “intangible assets,” under finance leases that do not involve transfer ofownership to the lessee are amortized based on the straight-line method using the lease term as the useful life. The salvage value iseither zero or the guaranteed amounts when these are specified in the lease contracts.
5.

Allowance for loan losses
The Group’s allowance for loan losses is stated in accordance with the predetermined write-off and allowance standards based on the
borrower classifications as follows.
Legal bankruptcy:

Borrowers that are legally or formally subject to bankruptcy, such as insolvency or special
liquidation

Virtual bankruptcy:

Borrowers that are in a situation effectively equivalent to that of bankrupt borrowers

Possible bankruptcy:

Borrowers that are not currently in a state of bankruptcy but are considered to be at high risk of
becoming bankrupt in the future－5－

In need of special caution based on borrowers:

Among “in need of caution”, borrowers requiring caution whose loans either inwhole or in part require special monitoring (loans overdue for three months or more, restructuredloans)In need of caution:

Borrowers with problems regarding lending conditions and performance of repayment, borrowers
who will require monitoring in the future, such as borrowers whose business conditions are stagnant
or unstable, etc.

Normal:Borrowers that are recognized as having good business conditions and no particular financial
problems(1) For loans relating to “legal bankruptcy” and “virtual bankruptcy”, the estimated disposable amount of collateral and the estimatedrecoverable amount under guarantee are deducted from the book value after direct reduction described in the following and thebalance is recorded.
(2) For loans of large borrowers, which are “possible bankruptcy” and “in need of special caution based on borrowers” with a certain
amount of credit and whose cash flow related to the recovery of the loan principal and receipt of interest can be reasonably
estimated, the difference between the cash flow discounted using the initial contracted interest rate and the book value of the loan isrecorded as an allowance for loan losses (cash flow estimation method). For borrowers other than those noted above, the expected
loss amount is recorded based on historical cash flow estimations, and loans related to borrowers who meet certain requirements
within the period of the management improvement plan, etc., an allowance on these loans will continue to be recorded according to
the cash flow estimation method.
(3) For loans relating to potentially “legal bankruptcy” borrowers other than in (2), the expected loss amount for the next three years is
estimated and recorded. The expected loss amount is determined by deducting the estimated disposable amount of collateral andestimated recoverable amount under guarantee from the loan amount, and calculating the loan loss ratio for the balance, which isbased on the average value of the loan loss ratio over a certain historical period and making necessary adjustments that take into
account future prospects and other factors.
(4) For loans other than the above, the expected loss amount for “in need of special caution based on borrowers” for the next three years
and for “normal” and “in need of caution based on borrowers” for the next one year is estimated and recorded. For “in need of
special caution based on borrowers”, the expected loss amount is determined by deducting the estimated disposable amount ofcollateral and estimated recoverable amount under guarantee from the loan amount, and calculating the loan loss ratio for thebalance, which is based on the average value of the loan loss ratio over a certain historical period, and for “normal” and “in need ofcaution”, the loan amount is used, and necessary adjustments is take into account future prospects and other factors.
Sales-related departments assess all loans based on the self-assessment rules, and the asset audit department, which is independent ofthese departments, reviews these assessment results.
For collateralized or guaranteed loans to “legal bankruptcy” and “virtual bankruptcy”, the estimated uncollectible amount, which was
calculated by deducting from the loan amount the valuation amount of collateral and the amount under guarantee that was deemed tobe from the loan amount, was directly reduced from the loan amount as the estimated uncollectible amount, and that amount was
13,025 million yen.
With respect to the allowance for loan losses of consolidated subsidiaries and subsidiary corporations, etc., the amounts deemednecessary for general receivables are provided based on the historical default rate, and the amounts expected to be uncollectible areprovided for receivables designated as potentially irrecoverable after considering the recoverability of each claim.

6.

Provision for bonuses
Provision for bonuses is provided for bonus payments to employees based on estimated future payments attributed to the current
consolidated fiscal year.

7.

Provision for directors’ bonuses
Provision for directors’ bonuses is provided for the bonus (short-term performance-based compensation) payments to directors basedon estimated amounts of the future payments attributed to the current consolidated fiscal year.

－6－

8.

Provision for share-based compensation
Provision for share-based compensation is provided for the bonus payments to directors, etc. based on estimated future payments
attributed to the current consolidated fiscal year.

9.

Provision for reimbursement of deposits
To prepare for refund claims from depositors on those deposits that have ceased to be recorded as liabilities, the loss that could occur
due to refund claims in the future is estimated and the amount deemed necessary is posted as provision for reimbursement of deposits.

10.

Provision for contingent losses
For contingencies excluding those provisions allocated for other purposes, the loss that could occur in the future is estimated and theamount deemed necessary is posted as provision for contingent losses.

11.

Reserve under special laws

The reserve under special laws is a reserve for liability for financial instruments transactions. To compensate for a loss incurredin an accident in relation to securities, a consolidated subsidiary records an amount calculated in accordance with provisions set
forth in Article 46-5, Paragraph 1 of the Financial Instruments and Exchange Act and Article 175 of the Cabinet Office
Ordinance on Financial Instruments Business, etc.

12.

Method of accounting for retirement benefits
For the calculation of retirement benefit obligations, the Bank uses the payment calculation method to discount the estimatedretirement benefit to the period up to the end of the consolidated fiscal year. The difference in mathematical calculation is reported as
profit or loss as follows.
Difference in mathematical calculation:

Difference in mathematical calculation is amortized by the straight-line method over adefined period not exceeding the average remaining period of employment (15 years)
and is recognized as profit or loss in the consolidated fiscal year subsequent to its
occurrence.

Consolidated subsidiaries and subsidiary corporations, etc. apply the non-actuarial method that assumes the amount required forvoluntary resignation at the end of the one-year period to be the projected benefit obligation in computing the net defined benefit
liability and retirement benefit expenses.

13.

Standards for translation of assets and liabilities in foreign currencies into yen
Foreign currency assets and liabilities and overseas branches’ accounts are principally translated into yen equivalents at the exchange
rates at the consolidated balance sheet date.

14.

Lease revenue and costs
Revenue and costs associated with finance leases are recognized as sales and cost of sales over the lease period.

15.

Significant hedge accounting method(1) Hedging of interest risk
For the hedge accounting method applied to hedging transactions for interest rate risk of the Bank arising from financial assets andliabilities, the deferred hedge accounting method is applied in accordance with “Treatment for Accounting and Auditing ofApplication of Accounting Standard for Financial Instruments in Banking Industry” (The Japanese Institute of Certified Public
Accountants’ (JICPA) Industry Committee Report No. 24). Hedge effectiveness of the hedging that offsets the market fluctuations
is evaluated by identifying and grouping the hedge subjects such as deposits and loans as well as interest rate swap transactions,etc. as hedging instruments by their maturities. The effectiveness of the hedge, of which cash flow is fixed, is evaluated byverifying the correlation between hedge subjects and the elements of hedge instruments that are affected by the interest rate
fluctuations for each remaining period.

－7－

(2) Hedging of exchange fluctuation risk
Hedge instruments used to hedge foreign exchange risks associated with various foreign currency denominated monetary assets
and liabilities of the Bank are accounted for using the deferral method, in accordance with “Treatment for Accounting and
Auditing of Application of Accounting Standard for Foreign Currency Transactions in Banking Industry” (JICPA Industry
Committee Report No.25). Hedge effectiveness is evaluated as a hedging means for currency-swap transactions and foreignexchange swap transactions aimed at offsetting the exchange fluctuation risk of foreign currency denominated monetary claims,
etc., by confirming that an amount equivalent to the foreign currency position, commensurate with the foreign currency
denominated monetary claims, etc. to be hedged exists.
As a hedge accounting method other than (1) and (2) above, the deferral method or the special treatment for interest rate swaps isapplied for some assets and liabilities.

16.

Application of Japanese Group Tax Sharing System
The Bank and certain consolidated subsidiaries of the Bank have applied Japanese Group Tax Sharing System.

－8－

Change in Accounting Policies(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Bank and certain consolidated subsidiaries of the Bank have applied “Implementation Guidance on Accounting Standard for Fair
Value Measurement” (ASBJ Guidance No.31, June 17, 2021) from the beginning of the current fiscal year. In accordance with thetransitional treatment set forth in Paragraph 27-2 of Implementation Guidance on Accounting Standard for Fair Value Measurement, theBank and certain consolidated subsidiaries of the Bank have prospectively applied the new accounting policy set forth in Implementation
Guidance on Accounting Standard for Fair Value Measurement. There are no effects on the consolidated financial statements due to theapplication of the Implementation Guidance.

Significant Accounting Estimates
An item recorded in the consolidated financial statements for the current consolidated fiscal year based on accounting estimates, which
may have a significant impact on the consolidated financial statements for the following consolidated fiscal year is as follows:
Allowance for loan losses

72,569 million yen

The calculation method of allowance for loan losses is as shown in “5. Allowance for loan losses” under “Accounting Policies”, and thefollowing main assumptions were used to calculate the allowance.
▪

The future financial outlook of borrowers used in the determination of the borrower classification based upon the evaluation of theiractual current financial performance and management improvement plan▪

The estimated amount of real estate collateral that can be disposed of in the future, which was determined based on actual dispositionin the past▪

The outlook for future principal collection and interest receipt on loans based on the recent performance of the borrower determinedusing the cash flow estimation method▪

In the calculation of the amount of expected losses, the future outlook based on long-term past performance, future prospects basedon trends in past performance that were considered in necessary adjustments to loss ratios based on the past average.

These assumptions may be affected by changes in uncertain future economic conditions. If there are significant differences between theassumptions and actual results, this may have a material impact on the amounts of the allowance for loan losses and provision ofallowance for loan losses for the following consolidated fiscal year.
While the impact of Novel Coronavirus Infectious Disease on domestic economic activities has weakened, the impact on thecredit risk of debtors remains unclear. Accordingly, the allowance for loan losses is estimated as follows. The Bank and certain
consolidated subsidiaries of the Bank expect credit losses from some debtors due to deterioration of business performance and cash
flows, and the Bank and certain consolidated subsidiaries of the Bank collect latest detailed information as much as possible anddetermines the debtor classification based on the future prospects to calculate the allowance for loan losses. In addition, for some debtors
in certain industries whose business activities have been significantly affected by Novel Coronavirus Infectious Disease, the Bank of andcertain consolidated subsidiaries of the Bank calculate the amount of expected credit losses with additional necessary adjustments
considering the uncertainty of future prospects and credit risk. The assumption of the impact of Novel Coronavirus Infectious Disease isuncertain, and actual credit losses may exceed the expected credit losses if the deterioration of debtors’ business performance and theperiod required for recovery exceed the assumption based on the latest available information due to sluggish consumer spending andstagnant production activities.

Additional Information(Transition from Consolidated Tax Return Filing System to Japanese Group Tax Sharing System)
The Bank and certain consolidated subsidiaries of the Bank have adopted Japanese Group Tax Sharing System in place of Consolidated
Tax Return Filing System from the current fiscal year. Accordingly, the accounting treatments and disclosures of income taxes, local
corporate taxes and tax effect accounting are in accordance with the “Practical Solution on the Accounting and Disclosure Under theGroup Tax Sharing System” (ASBJ PITF No. 42). Based on the treatment of Paragraph 32 (1) of ASBJ PITF No.42, it is deemed that
there is no impact of changes in accounting policies due to the adoption of ASBJ PITF No. 42.
Notes

－9－

(Consolidated balance sheet-related matters)
1.

Japanese national government bonds and others under “Securities” include 92,904 million yen of unsecured securities lent under
lending agreements.

2.

Claims under the Banking Act and Act on Emergency Measures for the Revitalization of the Financial Functions are as follows. The
claims are included as Japanese corporate bonds under “Securities” on the consolidated balance sheet (limited to those bonds for whichredemption of the principal and payment of interest are guaranteed in whole or in part, and the issuance of the said bonds is a private
offering in accordance with Article 2, Paragraph 3 of the Financial Instruments and Exchange Act), loans, foreign exchanges, accrued
interest and provisional payments in "other assets," receivables recorded in each account of customers’ liabilities for acceptance andguarantees, and securities (limited to those securities based on a loan for use or lease agreement) when the securities are loaned.
Bankrupt or De facto bankrupt
Doubtful claims
Loans overdue for three months or more
Restructured loans
Total

43,580 million yen
118,804 million yen
3,792 million yen
10,698 million yen
176,876 million yen

Bankrupt or De facto bankrupt claims are claims to borrowers that have fallen into bankruptcy due to reasons such as thecommencement of bankruptcy proceedings, commencement of rehabilitation proceedings, or a petition for the commencement of
rehabilitation proceedings, and claims equivalent to these.
Doubtful claims are claims to borrowers that have not reached a state of bankruptcy, but whose financial position and businessperformance have deteriorated, are at high risk of the principal and interest becoming unrecoverable in accordance with theagreement, and do not fall under Bankrupt or De facto bankrupt.
Loans overdue for three months or more are loans whose principal or interest payments are in arrears for three months or more fromthe day following the contract payment date and do not fall under Bankrupt, De facto bankrupt, or Doubtful claims.
Restructured loans are loans where an arrangement such as interest rate reduction or exemption, interest payment deferment, principal
repayment deferment, debt waiver or other arrangement advantageous to the borrower has been made for the purpose of reorganizing
or supporting the borrower's business, and do not fall under Bankrupt, De facto bankrupt, Doubtful claims, or loans that are overdue
for three months or more.
The above loan amounts are the amounts before deduction of the allowance for loan losses.

3.

Bills discounted are treated as financial transactions in accordance with JICPA Industry Committee Report No.24. The Bank holds theright to freely dispose of commercial notes, foreign bills bought, etc. accepted as financial transactions by means of sale or (re)collateralization, and the face value is 16,026 million yen.

4.

Assets pledged as collateral are as follows.
Assets pledged as collateral
Cash and due from banks
Securities
Loans and bills discounted
Other assets

36,600 million yen
1,267,572 million yen
1,777,400 million yen
836 million yen

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

31,936 million yen
66,194 million yen
161,689 million yen
2,120,789 million yen

In addition, securities of 30,860 million yen and other assets of 62,030 million yen were pledged as collateral in settlement fortransactions such as settlement of foreign exchange or as substitutes for margins of futures markets.
Other assets include margin payments for future transactions of 1,653 million yen, cash collateral paid for financial instruments andothers of 22,894 million yen, and guarantee deposits of 4,211 million yen.

－ 10 －

5.

Commitment line contracts on overdrafts and loans are agreements to lend to a customer up to a prescribed amount, as long as there isno violation of any condition established in the contracts, if a loan request is received from the customer. The balance of unexecutedloans based on these agreements is 2,669,047 million yen. This includes 1,360,995 million yen of loans with a remaining contract termof less than one year.
Since most of these loan contacts will expire without being executed, the undrawn loan amount does not necessarily impact the future
cash flow of the Bank. Most contracts have a clause that allows the Bank to refuse the provision of requested loans or allow the Bank
to reduce the borrower’s credit limit due to changes in financial markets, the preservation of receivables and other rational reasons. In
addition, at the time of the contract, real estate and securities, etc. are considered as collateral as required. After the execution of acontract, a borrower’s status is also periodically checked following predefined internal procedures. The Bank reviews the contract andimplements measures to evaluate the borrower’s credibility, as required.

6.

Under the “Law of Land Revaluation,” (Act No. 34 of March 31, 1998), the land for business was revaluated. Of the valuationdifference, the amount corresponding to taxes on the valuation difference is included under the item “Deferred tax liabilities for land
revaluation,” and the corresponding deduction amount is recorded under net assets as "Revaluation reserve for land."Date of revaluation

March 31, 1998

Method of revaluation by Article 3, Paragraph 3 of the Act
Based on the “Land price of standard land published in accordance with the provision of Article 6 of the Land Prices Public
Announcement Act” which is described in Article 2, Paragraph 1 of the Order for Enforcement of the Act on Revaluation of Land
(Cabinet Order No. 119 of March 31, 1998), the price was reasonably revaluated and corrected using cases of land sales in theneighborhood, etc. as reference.
Difference between the sum of the fair value of the land for business which was

34,438 million yen

revaluated based on Article 10 of the Act at the end of the consolidated fiscal
year and the sum of the book value of the land for business after the revaluation
7.

The accumulated depreciation of property, plant, and equipment

168,621 million yen

8.

Amount of compressed entry of property, plant and equipment

80,305 million yen

9.

Among Japanese corporate bonds of securities, the amount of guaranteed obligations of the Bank for the bond obtained with the private
placement of securities (Article 2, Paragraph 3 of the Financial Instrument and Exchange Act) is 76,171 million yen.

10.

The principal amount of trusts with principal compensation agreement is 34,603 million yen of money trust.

－ 11 －

(Consolidated Statement of Changes in Net Assets)
1.

Class and total number of issued shares and treasury stock(Thousands of Shares)
Number of Shares
as of April 1, 2022

Increase during theconsolidated fiscal year

Decrease during theconsolidated fiscal year

Number of shares as ofMarch 31, 2023

Abstract

Issued shares
Common stock

1,204,576－－

1,204,576

Total

1,204,576－－

1,204,576

Common stock

－

－

－

－

Total

－

－

－

－

Treasury stock2.

Dividends(1) Cash dividends paid during the current consolidated fiscal year
(Resolution）
May 12, 2022
Board of Directors meeting
November 11, 2022
Board of Directors meeting

Class of shares

Total amount of dividends

Dividend per share

Record date

Effective dateCommon stock

8,793 million yen

7.30 yenMarch 31, 2022

May 17, 2022

Common stock

12,888 million yen

10.70 yen

September 30, 2022

November 18, 2022

(2) The effective date of dividends whose record date belongs to the current consolidated fiscal year is after the last day of the current
consolidated fiscal year.
(Resolution)

Class of shares

May 12, 2023
Common stock
Board of Directors meeting

Total amount ofdividends

Dividend resource Dividend per share

11,804 million yen

Retained earnings

9.80 yen

Record date

Effective date

March 31, 2023 May 17, 2023

Financial Instruments
1．

Financial instruments(1) Group policies for financial instruments
The Group engages in banking as its main business, as well as securities services, leasing, research services and other information
services, venture capital businesses, and other financial service businesses. As the Group positions services exclusively for local small
and medium-sized businesses and individuals as its core business, it is a fundamental objective of the Group to aim to minimize any
adverse effects of the economic fluctuations and the market change, and to provide ongoing financial services reliably. Under thisobjective, the Group works to maintain healthy operations by continuously identifying, assessing, monitoring, and controlling thevarious risks inherent in the financial instruments that correspond to the strategic goals of the Bank, including medium-term
management plans and management policies.

(2) Nature and extent of risks arising from financial instruments
The financial assets of the Bank, which mainly consist of loans to small and medium-sized businesses and individuals in the Kanagawa
Prefecture and southwestern Tokyo, which is the business base of the Bank, are exposed to customer credit risk due to the default ofcustomer contracts. Securities mainly consist of debt securities, equity securities and investment trusts, and are accounted for as trading
securities, held-to-maturity securities, and available-for-sale securities. These securities are exposed to issuers’ credit risk and the riskof market price fluctuations.
The financial liabilities are mainly personal deposits in the Kanagawa Prefecture and southwestern Tokyo, which is the business baseof the Bank, and consist of liquidity deposits and fixed-term deposits. However, these deposits are exposed to liquidity risk, such as
losses generated by unexpected withdrawals in certain environments.
There are certain mismatches in interest rates and contract periods between financial assets, such as loans, and financial liabilities, suchas deposits, that are exposed to interest rate fluctuation risk. However, the risk is partially mitigated by using interest-rate swap
derivatives.

－ 12 －

Financial assets and liabilities denominated in foreign currencies are exposed to foreign exchange risk which causes losses due tofluctuations in exchange rates.
For derivative transactions, the Bank provides customers with risk-hedging methods, and, for the purpose of managing the Bank’s
assets and liability structures (ALM: Asset Liability Management) and hedging against market fluctuation risk, the Bank engages ininterest swap transactions to strengthen earnings. Similar to other market transactions, derivative transactions are subject to a variety ofrisks, including market, credit, and liquidity risks. For derivative transactions undertaken for the purpose of hedging, the Bank has
adopted “hedge accounting” that complies with the “Practical Guidelines for Financial Instruments Accounting” (hereinafter “Practical
Guidelines”). The hedged items and hedging instruments to which hedge accounting was applied in the current consolidated fiscal year
are as follows:・Hedging targets: loans and bonds, foreign currency-denominated monetary claims and debts, stocks
・Hedging method: interest rate swaps, currency swaps, stock forward transactions
The Bank reviews the effectiveness of hedging activities using methods permitted under the Practical Guidelines. In addition, someconsolidated subsidiary corporations hold lease receivables and instalment receivables. These financial instruments are exposed tointerest rate fluctuation risk, credit risk, etc.

(3) Risk management for financial instruments(a) Credit risk management
The Bank conducts rigorous screening of individual credit decisions in accordance with the five principles of “publicness,” “safety,”“profitability,” “growth potential,” and “liquidity” stipulated in the “Credit Policy.” From the perspective of strengthening
governance, individual large-scale credits are analyzed and examined by the Investment and Loan Committee (a management
committee consisting of Officers, etc.) to determine whether or not to accept them.
In addition, the Bank has developed an “Internal Credit Rating System” and a “Self-Assessment System” to categorize thecredibility of debtors and individual loan projects from an independent point of view and appropriately controls credit risk andappropriate writes off and reserves as needed.
Furthermore, under the Internal Credit Rating System, the Bank evaluates the health and profitability by statistically quantifying thecredit risk of the entire credit portfolio using default performance and collateral and guarantee data for each debtor rating, comparing
risk and management strength, and applying the appropriate lending interest rate.

(b) Market risk management≪Management system≫

As part of its ALM, the Bank controls interest risk, exchange risk and price fluctuation risk. Specifically, the risk management

department reports directly to management on the status of compliance with various risk limits, the operational status of market
transactions, and the status of profits and losses, and then reports on the status of market risk at the monthly ALM meeting.
In addition, the Bank categorizes market operations between trading operations and banking operations. For trading operations, theBank engages in transactions for the purpose of earning profits by taking advantage of interest rates, currency prices, short-term
fluctuations in market prices and other indicators in the financial instruments market and disparities between markets, etc., or for
reducing potential losses due to transactions (specific transactions) conducted for those purposes. The trading operations manages
government bonds, government bond futures, interest rate swaps, interest rate futures and other products. Banking operations refers tobusiness other than trading. The Bank conducts trading operations strictly in accordance with internal rules that clearly define specifictrading transactions and the authority and methods for fair value measurement.
≪Measurement of market risk≫

To measure market risk, the Bank uses a combination of VaR (value at risk), BPV (basis point value), and effective and efficientmeasurement methods in line with the characteristics and management policies of its business. In addition, the Bank conducts regularstress tests to be able to deal with risks that cannot be fully captured using VaR alone. The Bank uses two types of scenarios: a worstcase scenario, which can have a significant impact with significant market fluctuations and a sharp decline in liquidity, and a scenariothat supplements the characteristics of market risk measurement methods.

－ 13 －

(c) Liquidity risk management
The Bank formulates strategy goals and business operation policies taking liquidity risk into consideration.
≪Management system≫

The risk management department reports directly to management the status of compliance with various risk limits, and then reports on
the status of liquidity risk and the status of cash flows at the monthly ALM meeting.
When there are signs indicating that liquidity risk is becoming apparent, the relevant department can immediately hold a “Liquidity
Risk Emergency Measures Meeting” to collect and organize information and make swift decisions on necessary measures.

(4) Supplementary explanation on fair value of financial instruments
As certain preconditions are used for the fair value of financial products, the prices may differ when different preconditions are used.

2.

Matters relating to fair value of financial instruments and others
The carrying values, fair values and the differences between them as of March 31, 2023, are indicated below. Stocks and others without aquoted market price and investment in partnerships are excluded from the table below (see (Note 1)). In addition, cash and due frombanks, call loans and bills bought, receivables under resale agreements, call money and bills sold, and payables under securities lendingtransactions are omitted as those items are mainly settled in a short time period and the carrying amounts approximate fair value.
Furthermore, items for which the "consolidated balance sheet amount" is not material are omitted.
(Millions of Yen)
Carrying Amount

Fair value

Difference(1) Securities
Held-to-maturity securities

595,960

587,184

Available-for-sale securities (*1)
(2) Loans and bills discounted
Allowance for loan losses (*2)

1,869,471
14,094,314(71,978)

1,869,471(8,775)－

14,022,336

14,068,224

45,887

Total assets

16,487,768

16,524,880

37,111(1) Deposits(2) Negotiable certificates of deposit(3) Borrowed money

17,777,124
205,270
2,215,016

17,777,404
205,270
2,214,636

279
0
(380)

Total liabilities

20,197,411

20,197,310(100)

Derivative transactions not designated as a hedge

10,165

10,165－Derivative transactions designated as a hedge (*4)

3,357

3,357

－

13,523

13,523－

Derivative transactions (*3)

Total derivative transactions(*1) Investment trusts whose net asset value in accordance with Paragraphs 24-3 and 24-9 of the “Implementation Guidance on AccountingStandard for Fair Value Measurement” (ASBJ Guidance No. 31) is treated as fair value are included in the available-for-sale securities.
(*2) General and individual allowances for losses are excluded from the relevant loans and bills discounted.
(*3) Derivative transactions recorded in trading assets, trading liabilities and other assets and liabilities are presented in the aggregate.
Receivable and liability balances arising from derivative transactions are presented on a net basis, and items that net to liabilities arepresented in brackets.
(*4) The Group has applied the “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference
LIBOR” (ASBJ Practical Issues Task Force No. 40) to hedging relationships included in the scope of application of financial
instruments that reference LIBOR, such as deferred hedging through interest rate swap transactions that aim to reduce market
fluctuation risk in available-for-sale securities (debt securities), and deferred hedging through currency swap transactions that aim to
reduce foreign exchange fluctuation risk in monetary receivables and payables denominated in foreign currencies in accordance withthe “Treatment of Accounting and Auditing Concerning Accounting for Foreign Currency Transactions in Banking Industry” (JICPA
Industry Audit Committee Report No.25).

－ 14 －

(Note 1) Stocks and others without a quoted market price and investments in partnerships and others are indicated below and are notincluded in “available-for-sale securities” in fair value information on financial instruments.

(Millions of Yen)
Classification
Equity securities without readily available market price(*1)(*2)(*3)
Partnership investments (*3)(*4)(*5)

Amount recorded on the consolidated balance sheet
8,928
34,667(*1) Equity securities without readily available market price are not subject to fair value disclosure under Paragraph 5 of “Implementation
Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19).
(*2) Stocks of affiliated corporations, etc. of 7,671 million yen are not included.
(*3) In the current consolidated fiscal year, the amount of impairment for unlisted stocks is 140 million yen and for partnership investments
4 million yen.
(*4) Partnership investments are not subject to disclosure under Paragraph 24-16 of the Accounting Standard for Fair Value Measurement(ASBJ Guidance No. 31).
(*5) Investment in non-consolidated subsidiaries, subsidiary corporations, and affiliated corporations, etc. of 6,721 million yen is notincluded.

3.

Breakdown by fair value levels of financial instruments
The fair values of financial instruments are classified into the following three levels in accordance with the observability and significanceof the inputs used in the measurement of fair value.

Level 1 fair value: Fair value calculated using the (unadjusted) market price in an active market for an identical asset or liability.
Level 2 fair value: Fair value calculated using inputs that are directly or indirectly observable, other than the Level 1 inputs.
Level 3 fair value: Fair value calculated using significant unobservable inputs.
In cases where multiple inputs with significant effect on the calculation of the fair value are used, the fair value is classified at the level withthe lowest priority in the fair value calculation based on the level to which each respective input belongs.

(1)

Financial instruments other than those carried at fair value recorded on the consolidated balance sheet(Millions of Yen)
Classification

Level 1

Level 2

Fair value

Level 3

Total

Securities
Available-for-sale securities
Debt securities
Japanese national government bonds
Japanese local government bonds
Japanese corporate bonds
StocksOther securities (*1)
Total Assets
Derivative transactions (*2)
Interest rate-related
Currency-related
Stock-related
Bond-related
Other
Total derivative transactions

277,899－－
141,246
63,589482,735

34,234
129,106
290,505
11,077643,946
1,108,870－－
82,840－156,649
239,490

312,134
129,106
373,346
152,324
864,185
1,831,096

－
－
－
(18)
－
(18)

11,4492,049－－－
13,498

－
－
－
－
42
42

11,449
2,049
－
(18)
42
13,523(*1) Investment trusts whose net asset value in accordance with Paragraphs 24-3 and 24-9 of the “Implementation Guidance on AccountingStandard for Fair Value Measurement” (ASBJ Guidance No. 31) is treated as fair value are not included. The amount reported in theConsolidated Balance Sheet for investment trusts that apply the treatment of Paragraph 24-3 is ¥31,942 million, and the amount reported in
the Consolidated Balance Sheet for investment trusts that apply the treatment of Paragraph 24-9 is ¥6,431 million.

－ 15 －

①Reconciliation of beginning balance to ending balance of investment trusts that apply the treatment of Paragraph 24-3

(Millions of Yen)
Current fiscal year
(From April 1, 2022
to March 31, 2023)－

Beginning balance
Profit or loss or other comprehensive income for the current period－

Included in profit or loss (*1)
Included in other comprehensive income(57)

Net purchases, sales and redemptions

32,000

The amount of net asset value of investment trusts that is deemed to be the fair value
The amount of net asset value of investment trusts that is not deemed to be the fair value
Ending balance
Net unrealized gain (loss) on investment trusts held as of the reporting date that isincluded in profit or loss for the current period (*1)－－
31,942－(*1) Included in “Other ordinary income” and “Other ordinary expenses” presented in the Consolidated Statement of Income.

②Details of the restrictions on the cancellation of investment trusts that apply the treatment of Paragraph 24-3 as of the end of the current
fiscal year
Investment trusts that require several months from the time of application for cancellation to the time of execution of cancellation:¥31,942 million③Reconciliation of beginning balance to ending balance of investment trusts that apply the treatment of Paragraph 24-9

(Millions of Yen)
Current fiscal year
(From April 1, 2022
to March 31, 2023)
Beginning balance

4,887

Profit or loss or other comprehensive income for the current period
Included in profit or loss (*1)

61Included in other comprehensive income

24

Net purchases, sales and redemptions

1,458

The amount of net asset value of investment trusts that is deemed to be the fair value
The amount of net asset value of investment trusts that is not deemed to be the fair value
Ending balance
Net unrealized gain (loss) on investment trusts held as of the reporting date that isincluded in profit or loss for the current period (*1)

－
－
6,431
－

(*1) Included in “Other ordinary income” and “Other ordinary expenses” presented in the Consolidated Statement of Income.

(*2) Derivative transactions recorded in trading assets, trading liabilities, other assets and other liabilities are presented in the aggregate. Net
positive and negative balances arising from derivative transactions are presented on a net basis, and items that are net debts in total arepresented in brackets.

－ 16 －

(2) Financial instruments other than those listed on the consolidated balance sheet at market value
Classification
Securities
Held-to-maturity securities
Japanese government bonds
Japanese local government bonds
Japanese corporate bonds
Foreign bonds
Loans and bills discounted
Total Assets
Deposits
Negotiable certificates of deposit
Borrowed money
Total Liabilities

Level 1

Level 2

69,625－－－－69,625－－－－

Fair value－
514,347
202
3,008－
517,559
17,777,404
205,270
2,214,636
20,197,310(Millions of Yen)

Level 3

Total

－
－
－
－
14,068,224
14,068,224－－－－

69,625514,347
202
3,008
14,068,224
14,655,409
17,777,404
205,270
2,214,636
20,197,310(Note 1) Explanation of the valuation techniques and inputs used in calculating fair values

Securities
Fair values of stocks are based on the prices quoted by exchanges and are mainly classified as Level 1 in accordance with active markets.
Fair values of bonds are based on trading reference statistics published by the Japan Securities Dealers Association or prices presented byfinancial institutions. The fair values of government bonds are mainly classified as Level 1, and local government bonds and corporate
stocks (excluding private placement bonds) as Level 2. Asset-backed securities included in other securities are based on prices presented byfinancial institutions, etc. and are mainly classified as Level 3.
Fair values of private placement bonds are calculated by discounting future cash flows at a discount rate, which is the sum of the risk-freeinterest rate and the estimated credit risk premium based on the internal rating and are classified as Level 3 fair value.
Investment trusts are based on net asset value , etc., and are mainly classified as Level 2 fair value.

Loans and bills discounted
As the book values of loans with floating interest rates reflect the market interest rate in the short term, as long as the credit status of thelenders do not differ significantly after execution, the book value is used as fair value. For loans and bills discounted with fixed interest rates,
fair values are calculated by discounting future cash flows at a discount rate, which is the sum of the risk-free interest rate and the credit risk
premium estimate based on the internal rating. In addition, for those with short contract periods (up to one year), the carrying values
approximate fair value.
In regard to claims and others against “legal bankruptcy”, “virtual bankruptcy” and “possible bankruptcy”, since the estimated amount of bad
debt is calculated mainly based on the present value of the expected future cash flows or the estimated amounts that the Bank would be able
to collect from collateral and guarantees, the carrying values approximate fair value of claims and others minus the allowance for loan losseson the consolidated balance sheet as of the end of the fiscal year. Therefore, such amounts are used as fair values.
The fair values of loans and bills discounted are categorized as Level 3.

Deposits and negotiable certificates of deposit
For demand deposits, the Bank deems the payment amounts (book values) if required on the consolidated balance sheet date to be fair values.
In addition, fair values of time deposits and negotiable certificates of deposits are calculated by classifying them according to commodity andremaining term by discounting the future cash flows. The discount rates used in such calculations are the market interest rates. For deposits
whose deposit terms are short (i.e., within one year), the carrying values approximate fair value.
The fair values of deposits and negotiable certificates of deposit are categorized as Level 2.

Borrowed money
The book value of borrowed money with floating interest rates approximates fair value because the market rates are reflected in the shortterm, and the credit conditions of the Group have not changed significantly after borrowing. The fair value of borrowed money with fixed－ 17 －

interest rates is determined by discounting future cash flows at an interest rate that takes into account the remaining period of the loan andcredit risk. For short-term contracts (up to one year), the carrying value of borrowed money is used as it approximates fair value.
The fair value of borrowed money is categorized as Level 2.

Derivatives
Fair values of derivatives are categorized as Level 1 when unadjusted quoted prices in active markets can be used. This includes bondfutures.
However, since the majority of derivatives are over-the-counter transactions for which no quoted price is publicly disclosed, their fairvalues are calculated using evaluation techniques such as the present value technique and the option price calculation model, depending on
the type of transaction and the maturity period. The main inputs used in the evaluation techniques are interest rate, currency rate, volatility,
etc. The Bank carries out price adjustments based on the credit risk of the trading partner and the Bank’s credit risk. The fair values ofderivatives are categorized as Level 2 if no unobservable inputs are used or if the effect of the unobservable inputs used is insignificant.
This includes interest rate swaps and forward exchange contracts. Fair values are categorized as Level 3 when significant unobservable
inputs are used.

－ 18 －

(Note 2) Information related to financial instruments recorded on the consolidated balance sheet with fair values categorized as Level 3.

(1) Quantitative information about significant unobservable inputs
Classification

Evaluation techniqueSignificant unobservable input

Range

Weighted average

Discounted cash flow

Probability of default
Loss given default

0.0%－13.3%
20.0%－100.0%

0.4%
72.8%

Securities
Available-for-sale securities
Private placement bonds(2) Reconciliation between the opening and closing balances and loss/gain on valuation recognized in profit/loss as of March 31, 2023
(Millions of Yen)
Loss/gain on
Profit/loss or othervaluation of heldcomprehensive income
financial
Recorded in Net purchases,
Balance as Recorded
assets/liabilities
Transfers into Transfers out Balance asinothersales, issuesof therecorded in theLevel 3 fair of Level 3 fair of the end of
Consolidated
andbeginning profit/loss comprehensive
value
value
the
year
(*1)
incomeBalance Sheetsettlementsof the year

Securities
Available-for-sale securities
Japanese corporate bonds
Other
Total assets
Derivative transactions
Other
Total derivative transactions

recorded in
profit/loss(*1)

78,98884,158163,147

(15)
5,182
5,167

63
(1,629)(1,566)

3,804
68,93772,742

－
－
－

－
－
－

82,840156,649
239,490

－
－
－

40
40

(0)
(0)

－
－

2
2

－
－

－
－

42
42

－
－

(*1) Included in “Other ordinary income” and “Other ordinary expenses”,etc. presented in the Consolidated Statement of Income.

(3) Explanation of fair value evaluation procedures
The Group has established policies and procedures for calculating fair value in the risk management department and verifies theappropriateness of the calculated fair value. An appropriate valuation model that can reflect the nature, characteristics and risks ofindividual assets is used to calculate the fair value. When the fair value obtained from a third party is used, the validity of the price isverified using appropriate methods such as confirmation of the evaluation technique and the input used, and comparison with selfestimated values.

(4) Explanation of the impact on fair value when there is a change in significant unobservable input
Probability of default
Probability of default are estimates that show the possibility of the occurrence of a default event. A significant increase (decrease) in
the probability of default causes a significant decrease (increase) in fair value.

Loss given default
Loss given default is an estimated value that indicates the ratio of losses expected to occur at the time of default to the total balance ofbonds or loans and bills discounted. A significant increase (decrease) in loss given default causes a significant decrease (increase) in
the fair value.

(Per share information)
Total net assets per share
Net income per share attributable to owners of the parent

846.18 yen
41.00 yen

－ 19 －

(Significant subsequent events)(Tender offer to The Kanagawa Bank, Ltd.)At the meeting of the Board of Directors held on February 3, 2023, the Bank resolved to acquire common shares and Series 1 Class A
Preferred Shares of The Kanagawa Bank, Ltd. (hereinafter, the “Target Company”) through a public tender offer (hereinafter, the “Tender
Offer”) in accordance with the Financial Instruments and Exchange Act (Act No. 25 of 1948, including as amended) as a part of series oftransactions to make the Target Company a wholly-owned subsidiary of the Bank. As a result of the Tender Offer implemented during theperiod from February 6 to April 13, 2023, the Target Company became a consolidated subsidiary of the Bank as of April 27, 2023 (thecommencement date of settlement of the Tender Offer).

1. Purpose of the Tender Offer
The Bank and the Target Company, both of which is based in Kanagawa Prefecture, will work together to further fulfill their financial
intermediation functions for all customers in the region. Through this initiative, Concordia Financial Group, Ltd. will fulfill its mission androle more than ever before as a regional financial institution to contribute to the sustainable development of vibrant local communities and aim
to enhance the corporate value of the Group over the medium to long term.

2. Outline of the Target Company(1) Name: The Kanagawa Bank, Ltd.
(2) Location: 9 – 166 Chojamachi, Naka-ku, Yokohama, Kanagawa, Japan(3) Representative: Kazuaki Kondo, Director, President(4) Business profile: Banking business(5) Capital stock: ¥6,191 million (as of March 31, 2023)(6) Date of establishment: July 30, 1953

3. Outline of the Tender Offer(1) Planned number of shares to be purchased: 4,296,596 shares(4,193,096 shares for common shares and 103,500 shares for Series 1 Class A Preferred Shares)(2) Minimum number of shares to be purchased: 2,810,600 shares(3) Maximum number of shares to be purchased: None
(4) Tender offer period: From February 6 to April 13, 2023 (47 business days)(5) Tender offer price: ¥2,039 per share for common shares and ¥10,013 per share for Series 1 Class A Preferred Shares(6) Commencement date of settlement: April 27, 2023

4. Outcome of the Tender Offer(1) Result of the Tender Offer
As a result of the Tender Offer, the total number of shares tendered exceeded the minimum number of shares to bepurchased, and the Bank purchased all of the shares tendered.
(2) Number of shares purchased: 3,477,304 shares of common shares and 103,500 shares of Series 1 Class A Preferred Shares(3) Ownership ratio of shares after the Tender Offer: 84.63% (*1)
(4) Total purchase price: ¥8,126 million(*1) The ownership ratio of shares before the Tender Offer was 7.76% for the Bank and 0.28% for consolidated subsidiaries of theBank.
The Bank intends to make the Target Company a wholly-owned subsidiary of the Bank., but could not acquire all of the Target Company’scommon shares and Series 1 Class A Preferred Shares in the Tender Offer.
Therefore, the Bank plans to implement a series of procedures to make the Target Company a wholly-owned subsidiary of the Bank.

－ 20 －

(TRANSLATION)
INDEPENDENT AUDITOR'S REPORTMay 10, 2023
To the Board of Directors of
The Bank of Yokohama, Ltd.:
Deloitte Touche Tohmatsu LLC
Tokyo office
Designated Engagement Partner,
Certified Public Accountant:
Hiroyuki Hamahara
Designated Engagement Partner,
Certified Public Accountant:Takeshi Shimoiizaka
OpinionPursuant to the fourth paragraph of Article 444 of the Companies Act, we have audited the consolidated
financial statements of The Bank of Yokohama, Ltd. and its consolidated subsidiaries (the "Group"),namely, the consolidated balance sheet as of March 31, 2023, and the consolidated statement of income
and consolidated statement of changes in equity for the fiscal year from April 1, 2022 to March 31, 2023,
and the related notes.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as of March 31, 2023, and its consolidated financial
performance for the year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of
the Consolidated Financial Statements section of our report. We are independent of the Group inaccordance with the provisions of the Code of Professional Ethics in Japan, and we have fulfilled our otherethical responsibilities as auditors. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Other Information
Management is responsible for the other information. Audit & Supervisory Board members and the Audit &Supervisory Board are responsible for overseeing the Directors' execution of duties relating to the designand operating effectiveness of the controls over the other information. The other information comprises theinformation included in the Business Report and the accompanying supplemental schedules.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.

-1-

(TRANSLATION)
In connection with our audit of the consolidated financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with theconsolidated financial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Audit & Supervisory Board Members and the Audit &Supervisory Board for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in Japan, and for such internal
control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's
ability to continue as a going concern, disclosing, as applicable, matters related to going concern inaccordance with accounting principles generally accepted in Japan.
Audit & Supervisory Board members and the Audit & Supervisory Board are responsible for overseeing the
Directors' execution of duties relating to the design and operating effectiveness of the controls over theGroup's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's reportthat includes our opinion. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions ofusers taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:• Identify and assess the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks. The procedures
selected depend on the auditor's judgment. In addition, we obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion.
• Obtain, when performing risk assessment procedures, an understanding of internal control relevant tothe audit in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Group's ability to continue as a going concern. If weconclude that a material uncertainty exists, we are required to draw attention in our auditor's report to therelated disclosures in the consolidated financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However, future events or conditions may cause the Group to cease to continue as agoing concern.

-2-

(TRANSLATION)• Evaluate whether the overall presentation and disclosures of the consolidated financial statements are inaccordance with accounting principles generally accepted in Japan, as well as the overall presentation,
structure and content of the consolidated financial statements, including the disclosures, and whether the
consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Group to express an opinion on the consolidated financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with Audit & Supervisory Board members and the Audit & Supervisory Board regarding,among other matters, the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide Audit & Supervisory Board members and the Audit & Supervisory Board with a statementthat we have complied with relevant ethical requirements regarding independence, and communicate withthem all relationships and other matters that may reasonably be thought to bear on our independence, andwhere applicable, related safeguards.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required tobe disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Notes to the Readers of Independent Auditor's Report
This is an English translation of the independent auditor's report as required by the Companies Act ofJapan for the conveniences of the reader. The other information in "the Business Report and theaccompanying supplemental schedules" referred to in the "Other Information" section of this English
translation is not translated.

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