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 2023 Ended December 31, 2023
February 13, 2024
Lawson Bank, Inc. (https://www.lawsonbank.jp/)

I.

Financial Results Highlights(Financial figures are truncated to the unit stated)

1.

Results of Operation (Non-consolidated)

Total revenue
Net interest income
Net fees and commissions
Other business income
Net provision of generalreserve for loan losses
General and administrativeexpenses
Ordinary business profits
Ordinary profits
Net income
2.

3Q FY2022 (9 months)
20,052-285
20,3380(Millions of Yen)
3Q FY2023 (9 months)
20,873-83
20,956-1-0

17,134

18,297

2,917
2,917
1,966

2,575
2,581
1,818

Balance Sheets (Non-consolidated)

Cash and due from banks
Securities
Loans
Other assets
Total assets
Deposits
Call money
Borrowed money
Other liabilities
Total liabilities
Total equity

FY2022(As of March 31, 2023)
326,701
1,004
775
52,826
381,306
84,53937,000180,000
51,988353,527
27,7791(Millions of Yen)
3Q FY2023(As of December 31, 2023)
370,522913
84,718456,154
89,88760,000110,000
166,669
426,557
29,597

3.

Financial Ratios (Non-consolidated)
Expense-to-revenue ratio

3Q FY2022 (9 months)
85.4%

3Q FY2023 (9 months)
87.7%

Risk-weighted assets
Core capital
Capital adequacy ratio

FY2022(As of March 31, 2023)
81,98816,882
20.59%(Millions of Yen)
3Q FY2023(As of December 31, 2023)
85,014
13,69016.10%FY2022(As of March 31, 2023)

3Q FY2023(As of December 31, 2023)

13,50913,59397,937

107,720

141,408

146,009

Number of ATM units installed
Total number of banking
accounts
Number of credit cardcustomers

3Q FY2022 (9 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

3Q FY2023 (9 months)

196,916

209,94652.956.3

Note: Figures of total number of ATM usage are rounded off a number less than 1,000.

FY2022(As of March 31, 2023)
Number of affiliated financial
institutions (banks, companies,depositories) (Note1)
Number ofaffiliated
Immediate
services (Note2)
account
Number ofsettlement
affiliatedservicefinancialinstitutions

3Q FY2023(As of December 31, 2023)

385

391

561718Note:
1. The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.
2. au PAY and WebMoney prepaid card (including Lite) are considered each as an institution depending onservice categories.

2

II.

Financial Statements
1. Balance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY20223Q FY2023(As of March 31, 2023)(As of December 31, 2023)[Assets]
Cash and due from banks
Securities
Loans
Suspense payments in ATMs
Other assets
Tangible fixed assets
Intangible fixed assets
Differed tax assets
Reserve for loan losses
Total assets[Liabilities]
Deposits
Call money
Borrowed money
Suspense receipts of ATM
Other liabilities
Lease obligations
Accrued employees’ bonuses
Total liabilities[Equity]Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Other unrealized gain on
securities
Total net unrealized gain andtranslation adjustments
Total equity
Total liabilities and equity3

326,701
1,004
775
16,20915,355
10,087
10,901278-6381,306

370,522913
42,884
17,992
7,723
15,911215-8456,154

84,53937,000180,000
42,783
5,799
3,214
191
353,527

89,88760,000110,000
155,452
9,092
1,944
179
426,557

11,60011,6004,578
27,778

11,60011,6006,397
29,5970-0-

27,779381,306

29,597456,154

2.

Statement of Income (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)
3Q FY2022
3Q FY2023(From April 1, 2022 to(From April 1, 2023 to
December 31, 2022)
December 31, 2023)
Ordinary income
Interest income
Interest on loans
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
Interest on call money
Interest on borrowed money
Other interest paid
Fees and commissions expenses
ATM installation commissions
expensesATM commissions expenses
General and administrative expenses
Other ordinary expenses
Ordinary profits
Extraordinary losses
Tangible fixed asset disposal expenses26,279
81
80
-0
-1
26,18925,7920
723,361
366
64
-0
182
120
5,851

27,134116
113-0
27,00826,543
924,552
199
3
2
132
61
6,051

2,573

2,705

2,904
17,134
9
2,917
88
88

2,869
18,29742,581
3
3

Net income before income taxes
Income taxes
Income taxes, local inhabitant taxes
and the enterprise taxes
Deferred income taxes
Net income

2,829
862

2,577
759

875

696

-12
1,966

63
1,818

4