This is the preliminary translation of the Japanese version Lawson Bank financial results provided by Lawson, Inc.

Financial Summaryfor the Third Quarter of Fiscal Year 2018 Ended December 31, 2018
February 13, 2019
Lawson Bank, Inc. (https://www.lawsonbank.jp/)

I.

Financial Results Highlights(Millions of Yen)
1.

Results of Operation (Non-consolidated)

Total revenue
Net interest income
Net fees and commissions
Net trading income
Net other business income
Net provision of generalreserve for credit losses
General and administrative
expenses
Ordinary business profits
Ordinary profits
Net income

Post-opening1(4 months from September 1,
2018 to December 31, 2018)
8,106-297
8,403-

3Q FY2018(9months)
13,786-392
14,178
-

2

2

7,842
261
231
177

13,070713
684
417

1 Lawson Bank commenced its operation on September 10, 2018, but figures from results of operation for fourmonths from September 1, 2018, to December 31, 2018, are reported.

2.

Balance Sheets (Non-consolidated)
December 31, 2018
Cash and due from banks
Loans
Other assets
Total assets
Deposits
Borrowed money
Other liabilities
Total liabilities
Total equity

426,810080,692
507,50211,474
330,000
144,464
485,939
21,5631

3.

Financial Ratios (Non-consolidated)

Expense-to-revenue ratio

Post-opening1(4 months from September 1,2018 to December 31, 2018)
96.8%

3Q FY2018(9 months)
94.8%

1 Lawson Bank commenced its operation on September 10, 2018, but figures from results of operation for fourmonths from September 1, 2018, to December 31, 2018, are reported.

December 31, 2018
(Grandfathered basis)(Millions of Yen)
December 31, 2018
(Not grandfathered basis)

Risk-weighted assets

63,421

63,421

Core capital

10,316

7,504

Capital adequacy ratio

16.27%

11.83%

December 31, 2018
Number of ATM units installed

13,405

Total number of banking accounts

21,445June 1, 2018 toDecember 31, 2018
140,676

Total number of ATM usage (1,000s)
Average daily ATM usage (no. of times per day per unit)

49.8

Note: Figures are from operations after June 1, 2018 when the absorption-type split of Lawson ATM Networks, Inc.
was implemented.

December 31, 2018
Number of affiliated financial institutions (banks, companies,depositories)

107

Note: The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.

2II.

Financial Statements
1. Balance Sheets (Non-consolidated)(Millions of Yen)
December 31, 2018
[Assets]
Cash and due from banks
Loans
Suspense payments in ATMs
Other assets
Tangible fixed assets
Intangible fixed assets
Reserve for credit losses
Total assets[Liabilities]
Deposits
Borrowed money
Suspense receipts of ATM
Lease obligations
Other liabilities
Accrued employees’ bonuses
Total liabilities[Equity]Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Total equity
Total liabilities and equity426,810
040,647
9,848
16,137
14,060-2
507,502
11,474330,000
131,463
10,7252,145
130
485,939
11,60011,600-1,636
21,563
21,563
507,502

Note: Financial figures are truncated to the unit stated.

3

2.

Statement of Income (Non-consolidated)

Ordinary income
Interest income
Interest and dividends on securities
Interest income on due from banks
Fees and commissions income
ATM commissions received
Other business income
Other ordinary income
Ordinary Expenses
Interest expenses
Interest on deposits
Fees and commissions expenses
ATM installation commissions expenses
ATM commissions expenses
Other business expenses
General and administrative expenses
Other ordinary expenses
Ordinary profit
Extraordinary losses
Tangible fixed asset disposal expenses
Net income before income taxes
Income taxes
Current income taxes
Deferred income taxes
Net income
Note: Financial figures are truncated to the unit stated.

4(Millions of Yen)
3Q FY2018 (9 months)
18,292-8-0-8
18,282
18,2810
18
17,607
384
0
4,103
1,868
2,225
0
13,070
49
684
15
15668
251
247
4417