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

Summary of Consolidated Financial Results
for the Year Ended March 31, 2019
(Based on Japanese GAAP)May 14, 2019
Company name:

The Chugoku Bank, Limited

Stock exchange listing: Tokyo
Stock code:
8382
Representative:
Inquiries:

URL

https://www.chugin.co.jp/PresidentManaging Executive Officer & General

Masato Miyanaga

Tatsuo Hiramoto
Manager, Management Planning Department
Scheduled date of ordinary general meeting of shareholders:June 26, 2019
Scheduled date to file Securities Report:
Scheduled date to commence dividend payments:

June 27, 2019
June 27, 2019

Trading accounts:
Preparation of supplementary material on financial results:

No
Yes

Holding of financial results meeting:

Yes

TEL

086-223-3111(for analysts and institutional investors)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
Year ended March 31, 2019
128,621(2.8)
23,696(23.3)
16,199(23.7)
Year ended March 31, 2018
132,445(7.2)
30,922(2.1)
21,258
4.6
Profit attributable toOrdinary profit/total
owners ofassets
parent/equity
Yen%%
85.55
3.00.2111.054.00.3

Diluted earnings pershareEarnings per share
Yen
85.67
111.19Year ended March 31, 2019Year ended March 31, 2018

Ordinary
profit/ordinary
income%18.4
23.3(2) Consolidated financial position
Total assets
As of March 31, 2019
As of March 31, 2018

Net assets

Equity ratio

Millions of yen
8,253,750
8,467,295

Millions of yen
537,818
538,534

Cash flows fromoperating activities
Millions of yen(240,799)(101,208)

Cash flows frominvesting activities
Millions of yen
235,740
73,151

Net assets per share%
6.5
6.3

Yen
2,854.26
2,831.94(3) Consolidated cash flows

Year ended March 31, 2019Year ended March 31, 2018

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen(6,014)
749,382(6,654)760,451

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%

%

––

10.00
10.00

––

10.00
12.00

20.00
22.00

3,815
4,152

17.9
25.6

0.7
0.7

–

11.00

–

11.00

22.00

129.9

3. Forecast of consolidated financial results for the year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen%Yen
Six months ending
September 30, 2019
Full year

62,600(3.3)

10,900(22.2)

7,400(23.8)

39.37

125,700(2.2)

20,700(12.6)

13,800(14.8)

73.43

4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2019(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2019195,272,106 shares As of March 31, 2018

195,272,106 shares

Number of treasury shares at the end of the period
As of March 31, 2019

6,955,248 shares As of March 31, 2018

5,202,795 shares

189,090,839 shares Year ended March 31, 2018

191,174,903 shares

Average number of shares during the period
Year ended March 31, 20192

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCash and due from banks

777,680

763,344

Call loans
Monetary claims bought

141,250
28,99839,67731,550

Trading account securities
Money held in trust

1,827
29,0002,375
21,600

Securities
Loans and bills discounted

2,618,448
4,672,001

2,389,510
4,802,184

Foreign exchanges
Lease receivables and investment assets

7,949
17,934

9,042
21,019Other assets
Tangible fixed assets

126,184
39,887133,21439,588

Buildings, net
Land

12,631
20,17911,90520,032

Construction in progress
Leased assets

342,459

413
2,241

Other tangible fixed assets
Intangible fixed assets

4,5835,914

4,996
4,487

5,814
99

4,336
151

Deferred tax assets
Customers' liabilities for acceptances and guarantees

837
34,087947
32,490Allowance for loan losses(34,707)(37,281)8,467,295

8,253,750

6,414,356
216,725

6,630,177
170,112Call money
Payables under repurchase agreements

57,92871,56818,790125,088

Payables under securities lending transactions
Commercial papers

747,270
46,157377,224
48,717

Borrowed money
Foreign exchanges

195,355223

164,089
1,709

Borrowed money from trust account
Other liabilities

1,575
98,2562,760
104,264

Provision for bonuses
Provision for bonuses for directors (and other officers)

1,387
26

1,404
23

Retirement benefit liability
Provision for retirement benefits for directors (and other27,740

28,383

71

83

1,383

995

112
6

114
6

14,52834,0879,496
32,4907,928,760

7,715,931

Software
Other intangible fixed assets

Total assets
Liabilities
Deposits
Negotiable certificates of deposit

officers)
Provision for reimbursement of deposits
Provision for point card certificates
Reserves under special laws
Deferred tax liabilities
Acceptances and guarantees
Total liabilities

3

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Net assets
Capital stock
Capital surplus

15,1498,153

15,1498,153

Retained earnings
Treasury shares

433,053(7,400)445,459(9,401)

Total shareholders' equity

448,955

459,361

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

99,824(4,998)93,687(8,893)Remeasurements of defined benefit plans(5,516)(6,648)

Total accumulated other comprehensive income

89,30978,145269

311

Share acquisition rights
Total net assets
Total liabilities and net assets

4538,534

537,818

8,467,295

8,253,750

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2018
Ordinary income

Fiscal year ended
March 31, 2019

132,445

128,62179,71147,05579,654
51,42731,182813

27,041
521

375
284

383
281

Trust fees
Fees and commissions

1
17,143

118,006

Other ordinary income
Other income

22,77812,81022,232
8,726

1,568
5–
0

11,236
101,522

8,726104,925

13,7901,927

17,2292,333Interest on negotiable certificates of deposit
Interest on call money

58
1,374

40869

Interest on payables under repurchase agreements
Interest on payables under securities lending transactions

1,584
1,474

2,397
594

Interest on commercial papers
Interest on borrowings and rediscounts

779
1,270

1,100
2,530

Other interest expenses
Fees and commissions payments

5,320
4,301

7,362
4,288

Other ordinary expenses
General and administrative expenses

17,93360,712

14,77258,947

Other expenses
Provision of allowance for loan losses

4,784–9,687
4,359

4,784

5,328

30,922

23,696

14

15

14

150–

211

290

62
148

68
222

Profit before income taxes

30,72623,421

Income taxes - current
Income taxes - deferred

8,265
1,202

7,587
(365)

Interest income
Interest on loans and discounts
Interest and dividends on securities
Interest on call loans
Interest on deposits with banks
Other interest income

Reversal of allowance for loan losses
Recoveries of written off claims
Other
Ordinary expenses
Interest expenses
Interest on deposits

Other
Ordinary profit
Extraordinary income
Gain on disposal of non-current assetsTransfer from reserve for financial products transaction
liabilities
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss

Total income taxes

9,467

7,221

Profit21,25816,199Profit attributable to non-controlling interests
Profit attributable to owners of parent

5––

21,25816,199

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 201921,258
8,687

16,199(11,164)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges

6,403
1,087

(6,137)(3,894)Remeasurements of defined benefit plans, net of tax

1,196(1,132)

29,946

5,035

29,946

5,035––

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended March 31, 2018
(Millions of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

15,1498,153

Retainedearnings

Treasury shares

Total
shareholders'equity(12,116)

433,992

422,805

Changes of items during period
Dividends of surplus(3,832)(3,832)

Profit attributable to owners ofparent

21,25821,258Purchase of treasury shares(2,601)(2,601)

Disposal of treasury shares

(34)

172

138

Retirement of treasury shares(7,143)

7,143–

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period––

10,247

4,715

14,963

15,1498,153

433,053(7,400)448,955

Accumulated other comprehensive income
Valuationdifference onavailable-forsale securities
Balance at beginning of current
period93,420

Total
Deferred gains Remeasurements accumulated
otheror losses onof definedcomprehensive
hedgesbenefit plansincome(6,086)(6,713)80,621

Share
acquisitionrights361

Total net assets

514,975

Changes of items during period
Dividends of surplus(3,832)

Profit attributable to owners ofparent

21,258Purchase of treasury shares(2,601)

Disposal of treasury shares

138

Retirement of treasury shares–

Net changes of items other thanshareholders' equity

6,403

1,087

1,1968,687

(91)

8,596

Total changes of items during
period

6,403

1,087

1,196

8,687

(91)

23,559Balance at end of current period

99,824(4,998)(5,516)89,309269

538,534

7Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders' equity

Balance at beginning of current
periodCapital stock

Capital surplus

15,1498,153

Retainedearnings

Treasury shares

Total
shareholders'equity(7,400)448,955

433,053

Changes of items during period
Dividends of surplus(3,793)(3,793)

Profit attributable to owners ofparent

16,19916,199Purchase of treasury shares
Disposal of treasury shares(2,000)(2,000)(0)00

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period––

12,406(2,000)10,405

15,1498,153

445,459(9,401)

459,361

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period99,824

Total
Deferred gains Remeasurements accumulated
otheror losses onof definedcomprehensivehedges
benefit plansincome(4,998)(5,516)89,309Shareacquisitionrights269

Total net assets

538,534

Changes of items during period
Dividends of surplus(3,793)

Profit attributable to owners ofparent16,199Purchase of treasury shares(2,000)

Disposal of treasury shares0

Net changes of items other thanshareholders' equity(6,137)(3,894)(1,132)(11,164)42(11,122)

Total changes of items during
period(6,137)(3,894)(1,132)(11,164)

42(716)

Balance at end of current period

93,687(8,893)(6,648)78,145311

537,818

8Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 201930,72623,421

Depreciation
Impairment loss

4,376
148

4,331
222

Share-based compensation expenses
Provision of allowance for doubutful accounts

46(1,568)

42
4,359

(39)

16(3)

(2)

(520)

(986)

Increase (decrease) in provision for retirement benefits for
directors (and other officers)

(3)

11

Increase (decrease) in provision for reimbursement of deposits
Increase (decrease) in provision for point card certificates320
14(388)
1

Gain on fund management
Financing expenses(79,711)
13,790(79,654)
17,229Loss (gain) related to securities
Loss (gain) on money held in trust(1,965)33(2,621)
104

Foreign exchange losses (gains)
Loss (gain) on disposal of non-current assets

22,63120(11,973)
25

Net decrease (increase) in trading account securities
Decrease (increase) in other assets

516(69,110)(548)(8,266)

7(3,102)

Increase (decrease) in other liabilities
Net decrease (increase) in loans and bills discounted

36,864(276,918)

962(131,967)

Net increase (decrease) in deposit
Net increase (decrease) in negotiable certificates of deposit

220,648(2,034)

215,821(46,613)

5,869(31,266)

43,72799,02150,06153,519(91,364)(39,137)

Net increase (decrease) in payables under securities lendingtransactions(85,120)(370,045)

Net decrease (increase) in deposit (excluding deposit paid toBank of Japan)(6,794)

3,267

Net increase (decrease) in commercial papers
Net decrease (increase) in foreign exchanges - assets

21,950(1,481)

2,560(1,092)

Net increase (decrease) in foreign exchanges - liabilities
Net increase (decrease) in borrowed money from trust account

87
1,419

1,485
1,184

Proceeds from fund management
Payments for finance

84,482(13,600)

83,014(16,216)

Subtotal(92,493)(233,279)

Income taxes paid
Income taxes refund(9,008)293(7,519)–(101,208)(240,799)

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (andother officers)
Increase (decrease) in retirement benefit liability

Net decrease (increase) in lease receivables and investment
assets

Net increase (decrease) in borrowed money (excluding
subordinated borrowings)
Net decrease (increase) in call loans
Net increase (decrease) in payables under repurchaseagreements
Net increase (decrease) in call money

Net cash provided by (used in) operating activities

9

(Millions of yen)

Cash flows from investing activities
Purchase of securities

Fiscal year ended

Fiscal year ended

March 31, 2018

March 31, 2019

(1,162,615)(912,223)

Proceeds from sales of securities
Proceeds from redemption of securities973,169
274,935

879,627
263,920

Increase in money held in trust
Decrease in money held in trust(23,565)
13,032(7,909)15,204Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets(1,633)58(2,929)49

Purchase of intangible assets
Net cash provided by (used in) investing activities

(229)

–

73,151

235,740(3,832)(2,601)(3,793)(2,000)

(221)
–

(220)
0

Cash flows from financing activities
Cash dividends paid
Purchase of treasury shares
Repayments of lease obligations
Proceeds from sales of treasury stock
Proceeds from exercise of share options
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

0–(6,654)(6,014)(6)

5

Net increase (decrease) in cash and cash equivalents(34,717)(11,068)

Cash and cash equivalents at beginning of period

795,168

760,451

Cash and cash equivalents at end of period

760,451

749,38210