Interim Financial Results for FY2023(Ended September 30, 2023)

November 2023

Table of Contents
I. Interim Financial Results for
FY2023
Summary of Financial Results

III. Management Strategy

5-6

SX Strategy
Overview of GX strategy

22

Net Interest Income

7

Impact of Rise in Interest Rates

8

Securities Prtfolio

9

Net Fee and Commission Income

10

G&A expenses

11

Net Credit Cost and Non-Performing Loans

12

Capital Adequacy Ratio and Shareholder Return13

Overview of DX strategy

32

Earnings Forecast

14

Various initiatives

33

II. Enhancement of Corporate Value
Initiatives to Increase Corporate Value

16-17

Toward RORA Improvement

18

Earning power enhancement

19

Cost control

20

Promoting the decarbonization of banks

23-25

Strengthening decarbonization support for business partners

26-27

Promoting the decarbonization of the region

28-29

Enhancing response to TCFD recommendations

30

Support for next-generation industries

31

DX Strategy

HR Strategy
Overview of HR strategy

34

Various initiatives

35

Value creation process36Summary
Financial results● Core net business profits fell below the previous interim period, but progressed in line with the plan.
Net interest income decreased (by ¥5.0 billion year on year) due to an increase in foreign currency funding costs.
Net fees and commissions increased steadily (by ¥0.5 billion year on year) due to the strengthening of consultingrelated services.

● Interim profit on a consolidated basis ended up significantly exceeding the earnings forecast.
Net credit costs were (¥2.8 billion), decreasing ¥9.8 billion year on year due to the recording of a provision reversal.
Interim profit on a consolidated basis increased ¥6.7 billion year on year to ¥16.0 billion.

Management Strategy● SX Strategy
Supporting business partners: Finance and consultation
grew sharply
FG:
Established the SX Promotion Department(April 2023)
Raised the carbon neutrality goals
Newly established the Hokuhoku Solar Park
Alliance: Joined Team Sapporo-Hokkaido● DX Strategy
Established the DX Promotion Department(June 2023)
More app features
Started a demonstration test for utilizing
generative AI
Improved efficiency through adopting inhouse FAQ tools● HR Strategy
Shifted to an ecosystem for recruitment through talentpooling
Introduced a talent management system
Assisted employees in obtaining qualifications

3

Interim Financial Results for FY2023

Summary of Financial Results
Financial summary for interim results for FY2023[Group Consolidated]

Initialforecast

Results

ChangeOrdinary profits

12.0

14.1

(0.4)

Net income attributable to owners of the parent

7.0

16.0

6.7
(JPN Bn)[Total of two banks]

Hokuriku Bank
InitialResults

Change

57.9

(5.7)

48.0

Interest on loans and discounts
Securities

InitialHokkaido Bank

Results

Change

32.3

(2.2)

(5.0)

25.3

41.5

0.5

10.6

Net fees & commissions
Net other income (excluding gains (losses) related to bonds)

InitialResults

Change

25.6

(3.5)

(1.8)

22.6

(3.2)

20.8

0.3

20.6

0.1

(1.4)

7.0

0.1

3.5

(1.5)

10.4

0.5

6.6

0.0

3.8

0.4

(0.6)

(1.2)

0.2

(0.4)

(0.9)

(0.7)

38.3

0.5

20.1

0.0

18.2

0.4

66.27%

6.83%

62.48%

4.19%

19.5

(6.3)

12.1

(2.2)

(excluding gains (losses) related to cancellation of investment trusts)

19.1

(6.0)

11.7

Gains (losses) related to bonds(13.3)(3.9)

6.2(10.2)

(3.2)

(9.9)

6.9

0.2

forecast

Core gross business profits

57.0

Net Interest Income

G&A expenses (-) (excluding extraordinary treatment)

39.5(Reference) OHR
Core net business profits

17.5

Net business profits (*)
Net credit cost (-)

4.0

Gains (losses) related to stocks

forecast

31.0

21.0
10.0

2.0

forecast

26.0

18.5

71.05% 10.26%

7.5

7.4

(4.0)

(1.9)

7.4

(4.0)

(6.6)

(0.6)

(6.6)

(3.3)

5.4

(2.9)

0.7

(7.3)

(0.6)

(8.8)

(2.5)

(1.0)

5.4

(1.0)

1.5

1.3

2.0

Ordinary profits

13.0

14.9

(0.3)

7.5

10.9

4.7

5.5

4.0

(5.0)

Interim net income

8.5

17.4

6.7

4.5

12.0

7.8

4.0

5.3

(1.0)

*Before provision (reversal) of general allowance for loan losses

5Summary of Financial Results
Interim profit ended up significantly exceeding the previous interim period
Factors contributing to the change
in core net business profits

Factors contributing to the change
in interim profit

Total of two banks

Total of two banks(JPY Bn)

Interest on loans and discounts +0.5
Interest on securities (1.4)
Foreign currency funding costs (-) +3.9
Netinterest
incomeGains related to cancellation ofretirement benefit trust, etc.

Corporate consulting-related fees +0.1
Loan-related expenses (-) (0.3)

Others

0.1

3.7

5.0
Core netbusiness
profits

Others

25.8

0.5
Fees

1.2

6.3
10.6

FY22 1HNet
extraordin
ary gains(losses)

G&A expenses

0.5

Net foreignexchange gains(losses) (1.2)

3.3

Personnel expenses+0.1
Non-personnel
expenses +0.2
Taxes +0.1

Incometaxes

Gains(losses) on
securities

9.9

19.5

17.4

Making taxable provision of
credit costs nontaxable

3.6
FY23 1H

FY22 1HNet
creditcosts

FY23 1H

6

Net Interest Income
Loan balance increased mainly in prime areas, resulting in the interest
on loans surpassing the previous interim period.
Factors contributing to the change

Net Interest Income

in net interest income(JPN Bn)

Total of two banks
FY23 1H

ChangeFY23 1HInterest
rate

Change

(5.0)

25.3

(1.8)

22.6

(3.2)

1.5

41.5

0.5

20.8

0.3

20.6

0.1

9,618.5343.5

5,202.8

82.6

4,415.7

260.9

Averagebalance

0.86%(0.02%)

0.79%

0.00%

0.93%

(0.05%)

10.6

(1.4)

7.0

0.1

3.5

(1.5)

1,784.9(339.0)1,106.7(110.8)678.2(228.1)

1.18%

0.05%

1.27%

0.13%

1.04%

(0.08%)

Loans

Interest rate
Securities
Avg. balance

FY23 1HInterest rate

Securities(1.4)

Hokkaido Bank

48.0

Net Interest Income

Avg. balance

ChangeHokuriku Bank

Loans
+0.5

Total of two banks

0.9

Averagebalance

1.9

Foreigncurrency
costs

0.5

Interest
rate

53.1

3.9

0.1

Yendenominatedcosts

FY22 1H

Ave. balance and rate of loans
0.92%

0.90%

Total of two banks
0.87%(JPY Bn)
10,000

6,000

0.86%

9,041.1

9,171.1

9,417.3

9,618.5

4,306.4

4,155.5

4,182.0

4,176.9

2,899.5

2,948.6

8,000Interest rate by segment
PublicLoan interest
rates

Corporate

2,623.7

Public2,000
02,794.2

2,110.8

2,221.4

2,335.7

2,492.9

FY20

FY21

FY22

FY23 1H

FY23 1H

Total of two banks

Corporate

Consumer loan

1.59%

1.48%

1.44%

1.43%

0.84%

0.85%

0.84%

0.83%

0.26%

0.22%

0.18%

0.16%

FY20

FY21

FY22

FY23 1H

Consumer loan

4,000

48.0

7

Impact of Rise in Interest Rates
Short-term and floating interest rates account for 47% of loans,with a period of three years or less making up 61% of fixed interest rates.
Investment and procurement structure

Investment and procurement
structure (yen, term-end balance)

11.2(JPY Trillion)

13.5

Time deposits(over one year)

1.2
2.0

Time deposits(up to one year)

Other fixed loans
2%

Public10%

Housingloans - fixed24%

Yen loansliquidity

9.6

10.2

Fixed
53%

Securities

1.5

Investment

Procurement

Simulation of an increase in loan profit
in the event interest rates rise
Increase in loan income in the event of aninterest rate rise (50 bp)+¥9.2
billion+¥12.8billion2 years later

3 years later

Remaining yearsof fixed interest
periodOver 5 years
to 7 years
9%

4 years later5 years later*An increase in loan profit in the event market interest rates make aparallel shift and rise by 50 basis points (trial calculation)

Short-term
23%

Yen loans
9.6
trillion yen

Corporate floating
16%

Corporate - fixed Housing loans floating
17%
6%

Over 3years
to 5 years
15%

1 year later

Short-term
and floating
47%

Other floating
2%
Over 7years
15%

Up to 1year
28%

Remaining
years of fixedinterest period

Over 1 year to 3 years
33%

3 years or less:61%8Securities Portfolio
Foreign bonds were sold off and reshuffled. Yen-denominated bonds were
carefully increased in anticipation of a future rise in interest rates
Securities portfolio

Total of two banks

Revenue and valuation difference

Total of two banks(JPY Bn)(JPY Bn)

FY23 1H
Gains (losses) related to bonds

2,500

Gain on sale

2,199.5

Loss on sale (-)(13.3)
3.4
16.1

(3.9)

6.9

0.2

8.5
0.9
0.6

(4.6)
0.5
(5.4)

Net sales profit/loss on stocks

2,000

1,846.7

1,806.6

Gain on sale
Loss on sale (-)

1,500

Carefully increased in
anticipation of a future risein interest rates

1,321.1
1,119.8

Amortization (-)
Overall securities
portfolio(JPY Bn)

1,120.6
100

75.2

44.1

Change2.5
5.8

Impact on capital adequacy
ratio if unrealized losses
are realized: (approx. 0.8%)

39.7

Stocks

1,000

407.0
283.6
500

221.0

243.2

JPY-denominatedbonds
Foreign bonds

60

215.8

250.3

233.1

226.8

22/3

23/3

23/9

0

102.5

108.7

20
Stocks

210.0

98.0

Investment Trust,
etc.

(20)

3.2 (1.7)(24.2)(15.6)(7.4)(17.9)

Foreign bonds

JPYdenominatedbonds
Investment
Trust, etc.

(20.3)(35.3)(30.6)

(60)

22/3

23/3

23/9

9

Net Fee and Commission Income
Non-interest income ratio rose steadily due to enhanced consulting capabilities.
Net Fee and Commission Income

Total of two banks

Total of two banks

Fee revenue ratio(JPY Bn)
FY23 1H(1) Net fees and commissions

10.4

0.5

Fees and commissions

17.6
4.5
3.1
2.5
1.0
0.7
0.6

0.1
0.0
(0.0)
0.1
0.0
(0.1)
0.2

7.2
0.4
5.4
0.0

(0.3)
(0.0)
(0.3)
0.0

Remittance
Assets under custody
Solution services
Private placement bond, syndicated loan
M&A support, business succession support, etc.
Business matching
Fees and commissions payments (-)
Remittance (-)
Loan related expenses (-)(2) Net trading income(3) Net other income (excluding gains (losses)

17.06%

Change16.14%
15.14%
14.13%

FY20

6.0

FY23 1H

3.2

3.1

2.1

2.3

2.5

FY21 1H

FY22 1H

FY23 1H

3.0

(1.2)
(0.7)

2.4

(5) Core gross business profits

57.9

(5.7)

1.4

(6) Fee revenue ratio (4)/(5) (%)

17.06

0.42

3.0

Total of two banks

5.6

3.8

(0.6)
9.8

(4) Fee revenue (1)+(2)+(3)

FY22

5.5

5.2

(1.2)

Gains (losses) on foreign exchange transaction

FY21

Consulting-related service revenue(0.6)

related to bonds)

Long-term
goal: 18%
or moreAssets undercustody

Corporate
consulting

0.0

FY20 1H

10

G&A expenses
Expected to increase for this fiscal year due to factors such as investment insystems and relocation of the Hokuhoku Sapporo Building.
G&A expenses and OHR

Main factors contributing

Total of two banks

to the change in G&A expenses

Main factors contributing to

FY23 1H
Change(JPY Bn)
Non-personnel

OHR

expenses

68.18%

66.27%

64.59%

Personnel

41.5

40.0

40.0

18.3

37.8

16.5

Increases in administrative¥16.7 billion+¥0.2 billion outsourcing expenses andheating and lighting expenses
Increase in salary due to+¥0.1 billion

Taxes¥3.2 billion+¥0.1 billion Increase in consumption tax

Total¥38.3 billion+¥0.5 billion

personnel system revision

38.3
Nonpersonnel
expenses

17.8

the change¥18.3 billion

expenses

59.44%

Total of two banks

16.7

Investment outlook
Personnel
expenses

20.0

Main factors contributing to the increase
Systems investment (MEJAR, etc.)
Personnel system revision
Hokuhoku Sapporo Building relocation

0.0

19.8

18.9

18.2

18.3

3.3

3.1

3.1

3.2

FY20 1H

FY21 1H

FY22 1H

FY23 1H

Taxes

Others including taxes

74.7

FY22

80.0

FY23 Plan

11

Net Credit Cost and Non-Performing Loans
Net credit cost fell despite the accumulation of loans, and the NPL ratio remains
unchanged from the previous interim period.
Net credit costs

Balance of non-performing loans(JPY Bn)(JPY Bn)
0.10%

Credit cost ratio

0.14%

0.11%

8.0

NPL ratio-0.06%

6.7

2.24%

5.2
4.4

4.0

Total of two banks

1.0
3.3

0.0

2.8

212.5

Hokuriku Bank

2.4

13.6

200

219.0
13.2

212.0
11.1

180.1

(0.6)
(2.5)

(1.4)

2.13%

1.93%

Hokkaido Bank

8.1

2.23%

11.5

Bankrupt andsubstantiallybankrupt

(3.2)

(4.0)
FY20 1H

FY21 1H

FY22 1H

FY23 1H

Breakdown of net credit costs

164.8
100

(JPY Bn)

FY23 1H

Doubtful

143.1
Substandard

two banks Hokuriku Hokkaido

(0.6)

(2.5)

(4.4)

(2.5)

(1.8)

Specific allowance for loan losses and others
1.2

1.8

(0.6)

General allowance for loan losses

169.3

Total of

(3.2)

Net credit costs

168.4

25.6

34.1

37.5

31.5

21/3

22/3

23/3

23/9

0

12

Capital Adequacy Ratio and Shareholder Return
Shareholder returns strengthened while balancing capital
Shareholder return

Consolidated capital adequacy ratio
Capital adequacy ratio(JPY Bn)

9.45%

9.54%

9.49%

Increase in common stock dividends (¥35 to ¥37)
Acquisition of treasury stock (May to July 2023) ¥4 billion

9.57%*Total return rate

600

549.9

561.6

570.2

42.9

37.6

32.2

579.4

69.6%

400
499.5

200

511.5

527.5

87.4%

(JPY Bn)

32.2
Preferredshares539.1

Shareholders'equity

15.0

53.1%

Acquisitionof treasury
stock

52.1%

Redemptionof preferred
stock

10.0

Preferredstock
dividend

0

21/3

22/3

23/3

23/9

5.0

Commonstock
dividend

Factors contributing to the change in risk assets
0.0
Prioritized risk-taking
especially in the prime areas

Securities

FY22

¥40

FY23 1H*Total return rate =

¥35

FY23
(*Plan)*Estimates based on current
earnings and dividend forecasts

Dividends per common stockBusiness
lending

Appropriate risk control
based on market outlook

FY22

FY21

6,051.7

Consumerloan

6,004.4

FY20

¥37

¥37

(Dividends + Redemption + Purchase of Treasury Stock)
Net income attributable to owners of the parent

13

Earnings Forecast
Given the uncertain outlook for the economy and markets,
the full-year earnings forecast remains unchanged.
Forecasts for FY2023(JPY Bn)
Total of two(JPY Bn)banks

FY23 forecast

FY23

ChangeOrdinary profits

26.0

(0.3)

Net income*

17.0

(4.4)

*Net income attributable to owners of the parent

Core grossDividend percommon share

Year-end

FY23

FY23

115.0

(4.8)

63.0

(2.2)

52.0

(2.6)

80.0

5.2

42.5

3.0

37.5

2.1

35.0

(10.0)

20.5

(5.3)

14.5

(4.7)

Net credit costs

8.0

0.2

4.5

(4.8)

3.5

5.1

Ordinary profits

27.5

0.5

15.0

0.4

12.5

0.0

Net income

19.5

(3.5)

11.0

(3.3)

8.5

(0.2)

business profits
G&A expenses

business profits

Interim

Hokkaido Bank

forecast Change forecast Change forecast ChangeCore net

Dividend forecasts for FY2023

Hokuriku Bank

Annual―¥37.00¥37.00

¥7.50

¥7.50

¥15.00

Dividend perpreferred share(Type 5)14

Initiatives to Increase
Corporate Value

15

Initiatives to Increase Corporate Value
Breakdown of PBR index
PBR

ROE

=

=

RORA

PER

×

Financial× leverage control

1
×

Cost of equity– Profit growth rate

(Cost of equity in a broad sense)

RORA improvement- Boost fees and commissions and asset allocation

ROE
improvement[Cost control]

Financial leveragecontrol

Enhancement ofcorporate
value[Earning power enhancement]- Support for business operators for strategic
investments and credit cost control- Redeem preferred shares and reduce the total
number of common shares issued, both of which
are issues related to capital structure

Lower cost of equity

PER
improvement

CAPM = Government bond rate + Beta x TOPIX risk
premium
Risk premium beta decline

Increase profit
growth rate

Secure stable profit levels and actively disclose
information, including shareholder return and nonqualitative information

16

Initiatives to Increase Corporate ValueROE logic tree

RORA
improvement

ROE
Medium- tolong-term goals

6%

0.6%

Cost control

Strengthen asset
allocation

P18

Build a medium- to long-term portfoliowith RORA in mind

Boost fees andcommissions

P19

Expand solution revenue
by reinforcing human capital

Strategic mechanization, capital investment,
and productivity improvement
Expenses and credit costs

Net income

P20

Strengthening of business operator supportand discernment skills

Risk assets

×Level of the
top-ranking
local banks witha marketcapitalization of¥100 billion
or moreEarningpowerenhancement

Risk asset
control

Balance between
profitability and soundness

Increase or decrease in risk assets based on
the premise of financial leverage control

Focused investment of
capitalin growth areas P18

Focused investment of capitalin next-generation industrial fields

Risk assets
Shareholders'equityFinancialleveragecontrol

10 times

Optimalallocation ofcapitalStrengthening
shareholder
returns

Strategic investment andeffective use of financial
and non-financial capital

Growth investment based on capital surplus
and target ROE

Stock dividend

Dividend levels that bring the total return rate to
50% or more, acquisition of treasury stock, andpartial redemption of preferred shares

Flexible share repurchase

Reduction of cross-shareholdings

17

Toward RORA Improvement
Strengthen asset allocation
TOPICS

Conceptual presentation of increase (decrease)in risk assets (Two banks combined)

June 2023: Established the Structured Finance Office

Head Office

In June 2023, established the Structured Finance Office under
the Market Finance Department of the Hokuriku Bank
Securities

Plan for the balance of loans operated
by Head Office (*)

Corporate
loans

Sales officeMore than double
the current balanceMarket-rate
based loans
Structured
finance

Loan(JPY Bn)

Aim to carefully selectand accumulate thosewith high RORA.

221.6

258.0

298.3

FY20

FY21

FY22

Medium-term*Structured finance, market-rate based loans, etc.

TOPICS

Business
lendingJune 2023: Newly established the GX and NextGeneration Industry Support Group[Purpose]
Establish a support system for the semiconductor industry and nextgeneration industries, including renewable energy.
Provide useful information to local customers in a way that leads toenhancement of the Group’s value and aim to make such initiative afoundation for earnings five or ten years from now.

Build a portfolio that
ensures stable earnings
from a medium- to longterm perspective.

Anticipate the possibility of making investments or loans
at a scale of ¥ 1 trillion in the next ten years in thesemiconductor industry and next-generation industrial
fields, including renewable energy.
FY22 Results

Strengthen loans relating to next-generation industrial
fields that will lead to the sustainable growth of theGroup and the region, especially in prime areas.

Mediumterm

Long-term
goals

Sustainability-related
investments and loans
Environment-related investments
and loans

Cumulative amount disbursed from FY2021 to FY2030

1.5 trillion yen
700 billion yen

18Earning power enhancement
Boost fees and commissions (provision of high-value-added services)Enhancing consulting functions
Boosting existing consulting functions
Business
succession M&A

Asset management

Corporate
management
consulting

Staffing service

Business matching

Support inoverseas expansion

Consulting fee plan

Expansion of consulting area
Expansion andreinforcement offinance menu

10.8 11.3
6.2

12.0 billion yen
or morePersonal
consultingrerated

6.3

DX support

Sustainabilityrelated support

4.6

5.0

FY21

FY22

(JPY Bn)

Corporate
cousultingrerated

Medium-term

Diversification of touchpoints
Higher operational efficiency

GX Strategy P22
Expansion andreinforcement ofsustainable finance

Boosting
environment-related
consulting

Provision of highvalue-added services
by linking strategies
Relocation andoptimization of resources

HR Strategy P36

DX Strategy P33
Addition of
app portal functions

Strengthening
inside sales

Office transformation
through digitalization

Development of
new branch formats

Make personnel
available

Experts Consulting talent
DX talent SX talent
Talent for Head Office operation

Creating experts by putting humancapital management into practice19

Cost control
Trends in and outlook for expenses
69.56%

68.19%OHR
82.3

OHR will decline despite
an increase in expenses

63.15%

Taxes

80.0
Increase in system-related
expenses(Updating of accounting systems
and CRM, and others)
Increase in the renewal of large
buildings

Increase in expenses
related to personnel
system reform and
MEJAR renewal

Decrease in thenumber of personnel
and reduction of
mechanization costs

22/3 Results

Non-personnel
expenses

74.7

Personnel
expenses

Taxes

Non-personnel
expenses

Personnel
expenses

Taxes

Non-personnel
expenses

Personnel
expenses

78.8

Decrease in the number of
personnel and reduction ofadministrative outsourcing
expenses and rent

21/3 Results

62.39%

23/3 Results

24/3 Forecast

Fewer employees due to operational
efficiency
Reduction of property costs mainly byreviewing branch functions

Medium-term➢ Expenses are scheduled to rise due to anticipatory investments insystem updating and digitalization, as well as the renewal ofbuildings➢ Continue the reduction of clerical workload➢ Attempt to improve core net business profits per employee
The clerical workload in sales offices decreased considerably as aresult of making progress in digitalization and labor-saving
Core net business profits per employee rose due to higher productivity
FY2013Administrative workload insales offices
Core net business profits per
employee (JPY million)

FY2022

1,189,893

754,188

9.4

10.7

Curb credit costs
Strengthen monitoring
functions
Deepen evaluation ofbusiness viability

Improve thecorporate
management ofbusiness partners

Improve the effectiveness ofbusiness revitalization support

Curb credit costs

ChangeDown 36%+1.3

20

Management Strategy

21

SX Strategy
Overview of GX strategy
Aiming to become an environmentally advanced financial group, we will achieve decarbonization by working as a groupwhile linking each of our initiatives

Enhancing
response to
TCFD
recommenddations• Enhancing information
disclosure• Upgrading various kinds ofanalysis

Promotingthedecarbonizationof the Group••• Strengthening allianceswith ministries, local
governments and various
entities

Promoting thedecarbonizationof the region•

Enhancing finance andconsulting support

Developing SX talent
Promoting initiatives toreduce in-house CO2
emissions

Strengthening
decarbonization
support forbusiness
partners

22

SX Strategy
Promoting the decarbonization of the Group
Developing SX talent
Expansion of the programs to develop SX talent
Programs

Overview

Trial Internship
ProgramOffering opportunities toexperience HQ operations for aminimum of one week

Sustainability Trainee

Classroom lectures and on-thejob training

Challenge Job System

Employees can request to workin the SX Promotion Department

Challenge Job System
Sustainability Trainee

SX
Core
TalentTrial Internship Program

Utilization of the decarbonization advisor qualification program

Trial Internship Program

Sustainability Trainee

The SX Promotion Department has received trial interns since May
2023. Twelve members from Hokuriku Bank took part in the program
during the first half of FY2023. They experienced tasks performed in
the SX Promotion Department for three to five days for the purposeof having the bank utilize the program in order to start developing
SX core talent.

A Sustainability Trainee session was held in May 2023 mainly forstaff in charge of customer relations with the aim of developing
employees equipped with knowledge, experience and performancecapability in the sustainability field. A total of six employees from
Hokuriku Bank and Hokkaido Bank participated in the training during
the first half of FY2023.

23

SX Strategy
Promoting the decarbonization of the Group
Promoting initiatives to reduce in-house CO2 emissions
Long-term goals

CO2 emissions in our Scopes 1 and 2 (*)

Carbon neutrality by FY2030

Goals for reducing CO2 emissions (after adjustment) at the domestic business sites of all companies of the Hokuhoku Financial Group

Raising the goals toward carbon neutrality

Trend in Scopes 1 and 2 CO2 emissions of
the Group(t-CO2)
Scope 2

17,127

The Hokuhoku Financial Group has raised the CO2 emissions reduction goals
for the Group in order to further drive decarbonization
Current status

Scope 1

12,802

7,128

4,325

5,402
1,726

FY2022

FY2023 1H

Goals

Subje
cts

FY2030: Down 46% compared with
FY2013
FY2050: Carbon neutrality

After the raise➡

*Scopes 1 and 2 at domestic businesssites of Hokuriku Bank and HokkaidoBank, which are major companies of
the Group

FY2030: Carbon neutrality

Scopes 1 and 2 at domestic sites of allcompanies of the GroupOperation and new establishment of the Hokuhoku Solar Park, utilizing off-site corporate PPA
Hokuriku Bank and Hokkaido Bank constructed the solar power plant Hokuhoku Solar Park by leveraging the off-site corporate PPA. Branchesof Hokuriku Bank and Hokkaido Bank utilize renewable energy.
[Hokuhoku Solar Park Osawano, Toyama][Hokuhoku Solar Park Shiranuka, Hokkaido]

Location

Nishi-Osawa, Toyamacity, Toyama Prefecture

Location

Assumed annual
power generation

Approx. 3,300 MWh

Start of operation

Assumed annual
power generation

September 2023

Assumed CO2
emission
reduction effect(year)

Approx. (1,600 t-CO2)

Start of operation

First in the regionalbanking sector and oneof the largest in size

Assumed CO2
emission reduction
effect (year)

Shiranuka-cho,Shiranuka-gun,
Hokkaido
Approx. 2,400 MWh
Around the spring of2024
Approx. (1,300 t-CO2)24

SX Strategy
Promoting the decarbonization of the Group
Promotion of environmentally-friendly branches (ZEB stores)

Shift to carbon neutrality using credits

Tsuruga Branch, Hokuriku Bank

Carbon neutral city gas

Hokuriku Bank plans to relocate its Tsuruga branch to a new building in November
2023. The new branch will be located in a building that contributes to forest
conservation in the region by employing recycled wood louvers that use wood fromforest thinning in Fukui Prefecture as part of its construction materials and that has
achieved ZEB, which considerably curbs the energy consumption of the entire building.

Rumoi Branch, Hokkaido BankFirst among financial institutions
Hokuriku Bank entered into a contract with KJEnergy Co., Ltd. and started using carbon neutral
gas from June 2023.
Number of applicablebranches

Nine branches of Hokuriku
Bank in the city of Kanazawa

Estimated reduction of
CO2 emissions

Approx. 112 t-CO2 per year

First among financial
institutions in Hokkaido

Hokkaido Bank plans to relocate its Rumoi Branch to a new building in November 2024.
The new branch will be constructed with the aim of acquiring ZEB certification, which is
linked to a reduction in GHG emissions. The bank will also introduce EVs as part of the
fleet of its business-use cars.

Carbon neutral LP gas
First in the private sector
Hokuriku Bank entered into a contract with Daijyo
Energy K.K. and started using carbon neutral LP
gas from August 2023.
Number ofapplicable branches

Nomi Branch, Hokuriku Bank

Estimated reductionof CO2 emissions

Approx. 6 t-CO2 per year

25

SX Strategy
Strengthening decarbonization support for business partners
Long-term goals

Sustainability-related investments and loans (*1)
Environment-related investments and loans (*2)

Cumulative amount disbursed from FY2021 to FY2030: ¥1.5 trillion
Cumulative amount disbursed from FY2021 to FY2030: ¥700 billion(*1) Investments and loans to business partners who work toward achieving the SDGs, as well as investments and loans for medical care, health care, education, fisheries, agriculture,business start-ups, business succession, resilience, and environment-related activities, etc.
(*2) Investments and loans to support environmentally friendly initiatives, such as addressing climate change

Enhancing sustainable finance products

Reinforcing the financial support

Transition Finance and Social Loans
Sustainability-related investments and loans(cumulative amount) (JPY Bn)

450.0
384.4
289.3

270.0
211.8
172.5

153.8

102.6
56.3

135.5

22/3 Results

23/3 Results

180.0

Hokuriku Bank and Hokkaido Bank have started handling Hokuhoku
Sustainable Finance “Transition finance-type” (hereinafter referred toas Hokuhoku TF-type) and Hokuhoku Sustainable Finance “Social
loan-type” (hereinafter referred to as Hokuhoku SL-type) as common
loan products.
Specifieduse offunds

Social loan
Hokuhoku
SL-type46.3

Hokuhoku FG

23/9 Results
Hokuriku Bank

Target for 25/3
Hokkaido Bank

Unspecified
use offunds

Environment-related investments and loans(cumulative amount) (JPY Bn)

37.1

77.3

22.8
14.3

22/3 Results

210.0

187.2
95.7 91.5

126.0
84.0

70.1

23/3 Results
Hokuhoku FG

23/9 Results

Hokuriku Bank

Sustainability
linked loan
Hokuhoku
SLL-type

Green loan
Hokuhoku
GL-typePositive impact
finance

Hokuhoku Three
Targets

Hokuhoku
PIF-type

Hokuhoku standard
goal-type

Compliance with international principles“ESG lease”
147.4

Transition
loan
Hokuhoku
TF-type

Target for 25/3

Hokkaido Bank

Non-compliance withinternational principles

One of a kind as a company
headquartered in Hokuriku

Hokugin Lease Co., Ltd. was recognized by the Ministryof the Environment as a designated lease operator forthe subsidy for project expenses for reducing carbon
dioxide emissions for 2023 (“ESG lease subsidization
program” for building a decarbonized society). Moreover,the company was one of only 11 operators certified by
the Minister of the Environment as making excellent
environmentally-friendly efforts, and has started
handling ESG leases for FY2023.

26

SX Strategy
Strengthening decarbonization support for business partners

Enhancing consulting support
Revenue from sustainability-related solutions*

Number of SDGs / environment-related services used
Hokuhoku FG

Hokuriku Bank

(number of cases)
Hokkaido Bank

893

833
436

397

444

449

FY2022

FY2023 1H

Finance-related fees

¥756 million¥362 million

Consulting-related fees

¥122 million¥89 million

Total¥878 million¥451 million*Revenue from sustainability-related finance and consulting fees only
FY2022 1H

FY2023 1H

Reinforcing solutions for business partners
Business partners’ needs

The Group’s solutions

UnderstandConsulting and BM

Finance

Play card games

Loan products that sort out issues faced bybusiness partners

We are not able to sort out GX and SX internally

SDG evaluation service

For SMEs

We have no talent who can handle it

Dispatch of experts

We want our employees to understand the need to work more on GX and SXThree targets

For midsize and large enterprises

MeasureWe do not know how to measure CO2 emissions. We want to measure them

Emissions measurement cloud service

We already measure CO2 emissions, but we want to do it efficiently
We want to measure CO2 emissions by product

Positive impact finance
Sustainability linked loan

Business matching contract with BYWill, inc.
In June 2023, Hokuriku Bank and Hokkaido Bank concluded abusiness matching contract with BYWILL, inc., which supports
Japanese companies in pursuing sustainability management
through carbon credit-related services.

Emissions measurement consulting

We also want to measure CO2 emissions throughout the supply chain

ReduceWe want to further step up energy-saving
We want to install solar power generation equipment
We want to install solar power generation equipment without upfront costs

Energy-saving diagnostic service

Loan products for business partners to
implement sustainability measures

Self-consumption solar power

Green loan

PPA scheme solar power

Transition finance

Purchase of non-fossil certificatesSocial loan

We want to adopt various reduction methods

Disclose

We want to publicize our company's efforts in order to ramp up recruitment

CreatePurchase of carbon credits

We want to sell the environmental value associated with energy-saving and renewableenergy initiatives

Disclosure support consulting

Positive impact finance

We want to publicize our company’s efforts in order to respond to business partners

Sustainability linked loan

We want to boost external disclosure such as CDP and TCFD

We want to sell the environmental value associated with forests

Loan products that can be used in external PR
activities

Support for the creation of carbon credits

Business matching contract with Green Carbon, inc.
In November 2023, Hokuriku Bank and Hokkaido Bank
concluded a business matching contract with Green Carbon,
Inc., which creates and trades agriculture-derived CO2
credits.

Loan products for the installation of facilities
for creation
Green loan

27

SX Strategy
Promoting the decarbonization of the region

Strengthening the alliances

Hokuhoku Financial Group, Inc.
Hokuriku Bank

Stepping up efforts for MEJAR Sustainability Solutions Collaboration
Joint questionnaire

Joint seminar

In May 2023, Hokuriku Bank and Hokkaido Bank held the"Decarbonization Management Seminar" for corporate clients thatengage in management issues toward carbon neutrality. Thisseminar was hosted jointly by six banks as a collaborative measure
based on the MEJAR Sustainability Solutions Collaboration.
Co-sponsored by six banks of the MEJAR Sustainability Solutions
Collaboration

Decarbonization Management Seminar
The tide of carbon neutrality that aims for net zero GHG emissions hasvarious effects on corporate management, such as policy changes andrequests from supply chains. Based on the latest trends in carbon
neutrality, this seminar will explain the importance of decarbonization
management and the methodology.

Hirogin Holdings
Hiroshima Bank

Hokkaido Bank

MEJAR
Sustainability Solutions
Collaboration

The Bank of
Yokohama

The 77 Bank

The HigashiNippon Bank

Hokuriku Bank and Hokkaido Bank conducted a customer
questionnaire survey for corporate customers from August 2023 withthe aim of understanding the situation of companies that makeefforts for carbon neutrality. The questionnaire was jointly
conducted by five MEJAR banks, which received answers fromapproximately 1,000 companies. The banks will link the answer
results to joint product planning within the framework of the MEJAR
Sustainability Collaboration.

Lecture contents

Part 1 "Carbon Neutrality in Enterprises" from 3:00 p.m.
Part 2 "Carbon Credits and GX Trends" from 4:00 p.m.
LectureCarbon Free Consulting Corporation
Mr. Takeshi Nakanishi, CEOEndorsement of the establishment of thegeneral incorporated association Sustainability
Data Standardization Center (SDSC)

Participation in the carbon credit market

Hokuriku Bank and Hokkaido Bank endorsed the establishment of
the general incorporated association Sustainability Data
Standardization Center (SDSC) (hereinafter referred to as
Sustainability Data Standardization Center), which was founded inAugust 2023 to strengthen sustainability management.

Hokuriku Bank and Hokkaido Bank have entered the carbon credit
market, which opened in October 2023, as an effort toward theachievement of carbon neutrality by 2030.

Sustainability Data Standardization Center
As an organization aimed at raising the standards for disclosure ofsustainability-related information at all companies in Japan, the Center
will have the banking industry take the lead at an early stage in preparing
a framework for disclosing information on various initiatives of mid-levelsmall and medium-sized companies from a financial perspective. In the
future, the Center aims to prepare guidance that will become a standard
in Japan.

Carbon credit market
A market that the Tokyo Stock Exchange will open in preparation for
introducing an emission trading scheme, which is presented in thegovernment’s Basic Policy for Realization of GX as a system designed basedon carbon pricing. The market plans to start pilot trading from FY2023 andfull-scale operation from FY2026.

28

SX Strategy
Promoting the decarbonization of the region

Realization of decarbonization in the region
Joining Team Sapporo-Hokkaido
In June 2023, the Group joined Team Sapporo-Hokkaido, a consortium consisting of industry,
government, academia and finance, which was established to tap into Hokkaido’s renewableenergy potential and realize an Asian and global financial center that accumulates information,
human resources and funds relating to GX in Sapporo, Hokkaido. This consortium aims to attract
funds of 30 to 40 trillion yen from among public and private investment in GX, which some say
will surpass 150 trillion yen in the coming decade, to Sapporo, Hokkaido. The Group is actively
involved therein as the leader of the Fund Finance Working Group. We will also proactively
support efforts for carbon neutrality in Hokkaido as a regional financial institution and extend
examples of successful cases there to Hokuriku and other regions in a way that harnesses thestrengths of the Group, which has a network of broad-area branches.

Holding GX Seminar in Toyama
The GX Seminar for Sustainability Management for our business partners was held in Toyama as an effort toward regional decarbonization in
September 2023. Approximately 400 members from our business partners attended the seminar.
In addition to a keynote speech by Mr. Nishimura, the head of the Personnel Division of
the Ministry of the Environment, a panel discussion was held with guests from threecompanies actively engaged in GX in Toyama Prefecture.

29

SX Strategy
Enhancing response to TCFD recommendations

Initiatives to sophisticate various analyses
Launching efforts to advance the calculation of in-house GHG emissions and financed emissions
The Group started ascertaining and calculating Scope 3 from the current fiscal year. We will also focus on reducing Scope 3 alongside thecarbon neutrality of Scopes 1 and 2
GHG emissions (Excluding Scope 3: Category 15) Note: 1

51,874 t-CO2

Category 1 (Purchased goods and services) Note: 2

20,125 t-CO2

Category 2 (Capital goods)

13,490 t-CO2

Category 3 (Fuel and energy-related activities not included in Scopes 1 and 2) Note: 3

1,679 t-CO2

Category 4 (Transport and delivery [upstream])

2,009 t-CO2

Category 5 (Waste from business operations)273 t-CO2

Category 6 (Business trip)

596 t-CO2

Category 7 (Commuting of employees)

1,528 t-CO2

Category 13 (Leased assets [downstream]) Note: 412,175 t-CO2

GHG emissions (Scope 3: Category 15 [Investment]) Note: 5

Utilization of greenhouse gas (GHG)
emissions calculation platform

First in the regionalbanking sector

With the support of SCSK Corporation, the Group has launched an effort to further
enhance the calculation of emissions by utilizing the GHG emissions calculation
platform of Persefoni, which offers a climate management and carbon accounting
platform (CMAP) for companies, financial institutions and government agencies. The
platform calculated emissions of loans based on the business feasibility of about
60,000 business partners of Hokuriku Bank and Hokkaido Bank.
We plan to link the utilization of emissions data to our support for our business
partners’ decarbonization.
Note 1:
Note 2:
Note 3:Note 4:Note 5:22.695M t-CO2
Hokuhoku Financial Group, Inc.
Hokuriku Bank

Hokkaido Bank

Entry of investment and loanrelated activity data
PCAF experts⚫ Advice on data quality and calculation methods

SCSK technician⚫ Support the initial setup of the Climate Management& Accounting Platform (CMAP)

Person in charge of financed
emissions calculation⚫ Data input assistance⚫ Support on usage and inquiries using the support
platform CarePlus SPSS

 Provision of calculation tools Consultation on SDGs
 Input assistanceto name a few
Business partners⚫ PCAF-compliant calculation methods and various
emission factors are built into the platform⚫ With minimal activity data input, the system automaticallycalculates GHG emissions for each asset classAccelerate support for decarbonization⚫ Calculating and visualizing the results on a fund or
portfolio basis

Climate Management & Accounting Platform (CMAP)

Categories 8, 9, 10, 11, 12, and 14 in Scope 3 are not applicable.
Calculated using repair costs, administrative expenses for movable and immovable property, printing expenses, stationery expenses, equipment expenses, books and subscriptions, communication expenses, vehicle equipment and repair costs, and administrative outsourcing
expenses
Calculated using electricity consumption
Calculated using the speculated energy consumption based on a standard usage scenario by deeming all lease and sublease contracts of Hokugin Lease as lease contracts for information-related devices (tablet PCs) and hypothesizing the number of operational devices for eachcontract amountEmissions relating to loans based on business feasibility at Hokuriku Bank and Hokkaido Bank were calculated (Loans based on business feasibility correspond to Business loans under the first section of Business loans and unlisted equity among asset classes classified in PCAF)30

SX Strategy
Support for next-generation industries
Strengthen support for next-generation industries toward a society realized by GX and SX. First, consider
support measures for the semiconductor field, which is essential for realizing such a society.
Capture inbound demand
Tourism

Improvement ofeducational levels

Next-generation
semiconductor data
centerRevitalization of tourism
industry

Food

Promotion of DX throughaccumulation of technologies

ZEB and ZEH

Invitation of renewable energyusing companies

H
2
Expansion and reinforcement of
renewable energy stations

Reinforcement of transmission lines

Accumulation ofcompanies andhuman resources withhigh technologicalcapabilities

Lead to the expansion of industry andinfrastructure through GX and SXStrengthening ofdevelopment of
renewable energy
electricity

Construction of a mechanism that attracts
funds underpinning renewable energy
development, such as blended finance,
investment funds, and debt guarantees

Drive thedevelopmentof lifeline
infrastructure

H2
Invitation of storage battery
factories and hydrogen plants

Phase 1
SAF* Invitation of factories and plants

Phase 2
Popularization ofgreen mobility

Active application of renewableenergy to agriculture and fishery

Hydrogen andelectricity carrier

Increase in demand
for transport
infrastructure

H2
Sales and export of green
energy to regions outside
Hokkaido and overseas

Phase 3
Building of resource
recycling model
Increase in share ofmanufacturing
Increase in recycling business

Push for the shift to thesixth industry
Sending messages about
local brands*SAF: Aviation fuel that reduces CO2 in terms of life cycle more effectively than conventional fuels that use vegetable oil and waste oil

Create outbound demand31

DX Strategy
Overview of DX strategy

Restructuring of clerical work
Digitize operations and create
optimal service lines from thecustomer’s perspective

Development of new branchformats

DX Human Resource
Development

Pursue new branch formats withhigher customer satisfaction

Enhance face-to-face services

Started trial internshipprogramUtilize e-learning

Digitize over-thecounter operations
Adopt internal FAQ
bots

Rebalancing
personnel

Efficiency gain

Develop new business fields

Maximizing the effectivenessof the apps
Expand banking functions on a parwith branches

Linkage

Realization of sophisticatedmarketing
Establish a system to respond to
customer needs in a timely manner
through data analysis

Strengthen inside sales byusing a business cardmanagement system

A function for opening new
accounts through a portal
app is under development
Venturing into new business
areas

External provision offunctionality

Build a structure that allows us tocontinue taking on challenges in
new areas

Provide services that help capture
new revenue opportunities andsolve stakeholders’ issues

PoC of generated AI

Activate open innovation with startups

Strengthening the system to promote decarbonization

Earnings enhancement

DX Promotion Department was established (June 2023)■Purpose■Main missions

Advance group-wide DX by developing services that
contribute to enhancing convenience and improving
operational efficiency inside and outside the Group.

(1)

(2)
(3)
(4)

Plan DX projects in coordination with Group companies to speed up reforms(Including the use of new technologies such as Web 3.0, Stablecoins, and generative AI;
sophistication of channels and convenience improvement)
Engage in DX projects of the banks as a whole to seek total optimization as FG
Plan and operate data marketing in an integrated manner
Develop DX talent in coordination with external organizations and companies

32

DX Strategy
Various initiatives
Maximizing the effectiveness of the apps
Add a function for performing tasks associated witha heavy over-the-counter workload to apps
Adopt a system for development of customer reception services to enhance
UIUX and save labor for back-office work
As a starter, install a function for opening new accounts (Scheduled for March
2024)
Conceptual presentation of the flow
■ Upcoming development plan

●●●

✓

●●●

Jump from the portal app top page to theapplication screen✓ My Number Card can be read with a tap!

Second phase (Scheduled for
September 2024)- Change of address andaccount holder’s name- Application for various cards
Third phase (During FY2024)- Procedures for closing
accounts and the case of
losing savings passbooks

Venturing into new business areas
Starting a demonstration experiment for utilizing generative AI
for tasks at banks[Outline of the Joint Demonstration Experiment]
Conduct an experiment with Fujitsu Limited to demonstrate the utilization ofgenerative AI for banking tasks at Hokuriku Bank and Hokkaido Bank
■ Operations utilizing generative AI (planned)- Aggregation of answers to questionnaires- Obtain inspiration in preparing documents and studying strategies- Bug check of programs and preparation of test cases

Restructuring of clerical work
Adopt search tools for various FAQ cases within banks
Make the search for Q&A relating to clerical work at banks faster and simpler⇒By integrating existing Q&A cases andpresenting related Q&A cases as soon asa search term is entered, the investigation
time can be shortened, and the timenecessary for dealing with referrals frombranches of the head office can be
reducedWhat would you like to know?
wrong different

I registered a wrong address
I received a product that is different from what was explained
What is the difference in the delivery options?
How should I deal with a product that is the wrong size?
I shipped the wrong productRestructuring of clerical work
Conducted a demonstration experiment (PoC) toward
a semi-self-service customer counter
Hokkaido Bank conducted a demonstration experiment (PoC) jointly with NTT
Data toward the shift to a semi-self-service system using auto-change cash
registers
We will continue proceeding with a variety of verifications and initiatives toimprove customer convenience andreduce clerical workload■ Upcoming schedule
Based on the outcome of the experiment, proceed with the verification withthe aim of applying the said generative AI to actual operations

33

HR Strategy
Overview of HR strategy
Conduct six concrete actions based on the Human Capital Management Policy formulated in FY2023[Long-term vision]

Achieve sustainable growth together with local communities andcustomers through problem-solving[Human capital management policy]

Developing human resources who lead value creation byconnecting communities and business partners
Organize issues (as they are)[Specific actions][The Three Pillars of
Human Capital Management (To be)][Securing the required talent]
The number of employees is on a
downward trend due to mounting
difficulty in hiring new graduates and job
turnoverClarification of required
talentContinuous creation of selfdirected professionals that
embody management
strategies[Nurturing the required talent]Insufficient definition and understandingof, as well as training systems for, humanresources necessary for realizing key
strategies

Strengthening recruitment[Organizational Culture]
Insufficient response to diversifying
values and workstyles, and insufficient
preparation of an environment fordeveloping autonomous human resources

Human resource
development

Empowering women
Corporate culture thatencourages employees
to take up challenges

Realizing well-being

Empowering diverse humanresources for innovation(DE&I)Creating an environment thatencourages challenge andgrowth and maximizes ability[Policy on human resource development and internal environment development]

Develop talent that creates a virtuous cycle of value creation with customers and contributes to sustainableregional growth. Advance preparation of an environment in which diverse employees can find job satisfaction
and autonomously engage in the enhancement of their own value

34

HR Strategy
Various Initiatives to Realize Human Capital Management
Clarification of required talentCore and middle DX
talentCore and middle SX
talentCore and middle consulting
talent

129

200

2250

195

Human resource development

1901
31

23/9

25/3

23/9

25/3

23/9

25/3

◆ Develop experts and improve
the system◆ Dispatch employees toplaces outside the bank
◆ Upgrade training◆ In-house side job◆ Trial internship program◆ Support employees in reskilling

Strengthening recruitment◆ Step up recruitment ofpeople with work
experience

Number of mid-career hires

Holding "trial internships" in which
employees experience their desired jobs forthree to five days. During the first half of
FY2023, 115 people participated.

Empowering women◆Expanding the field for women to play an active role

55

Ratio of female managers◆ Recruitment of alumni◆ Recruitment throughreferrals◆ Recruitment ofhigh school graduates

24.0%
17.6%

16
FY23 1H

22/3

FY24

Corporate culture that encourages
employees to take up challenges◆ Challenge job system◆ In-house invitation toreceive training andgain work experience◆ One-on-one meeting◆ Creation of opportunities
for dialogue with top
management

A town hall meeting was held with
President Nakazawa and mid-careerhires (October)

18.8%

20.6%

23/3

23/9

25/3

Realizing well-being◆ 360° survey◆ Career advisor◆ Financial wellness
Prepare an environment in which employees can work withpeace of mind through Career Advisors – one mentor
assigned to one employee.
Number of interviews
in FY23 1H

316

interviews35

HR Strategy
Value Creation Process in Human Capital Management
A shift to an ecosystem
for recruitment through talent pooling

Recruitment throughreferrals
Recruitment of new
graduates(throughout the year)

Leave thecompany
Change jobs
(Alumni)

Including withdrawalof acceptance of job
offers, and nowadays,
mismatch between
employee andemployer

RegisterOnce theappetite tochange jobs
becomes strong

Connection in
the medium tolong term

Consider changing
jobs as well

Number of employees dispatched tooutside companies

Non-formalinterview

Register

Existing mid-career
recruitment (e.g., via
agents and recruiting
media)

Join thecompany

Selection process

People with thepotential tochange jobs

People in the processof seeking jobs

FY23 1H

FY24 Target

20

50

peoplepeopleDevelopment andassignment

Number of applicants for in-house
invitation to positions

FY23 1H

FY24 Target

154

255

peoplepeopleImprovingorganizational strengthand profitability

Talentpool

RegisterHiringNumber of IT Passport certification
holders

23/9

25/3

1,507 3,300
peopleIntroduction of a talent management system

Number of FP 1st class/CFP holders

23/9

We will attempt to visualize skills across the Group andfurther advance its active application to the support forautonomous career formation and HR strategy.

Hokuriku BankandHokkaido Bank
introduced the systemfrom August 2023

people

25/3

291

490

peoplepeopleNumber of decarbonization-related
certification holders

23/9

25/3

237

800

peoplepeopleSustainable Management Support
A qualification that is operated by
the Economic Legal ResearchInstitute to provide basic knowledge
for promoting sustainability.
Once an applicant passes the exam,
the person will be certified as a
Basic-Level Advisor for
Decarbonization under thecertification system by the
Ministry of the Environment.

Number of prospective
applicants as of Dec. 2023

1,502 people 36Inquiries related to this material should be addressed to

Hokuhoku Financial Group, Inc.
Managing Planning Division (Wada, Otake, Taniguchi)

TEL: (+81) 76-423-7331
FAX: (+81) 76-423-9545
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