The Chiba Bank, Ltd.
Small Meeting After 3Q Release for the Fiscal Year Ending March 2023
February 10, 2023

Event Summary[Company Name]

The Chiba Bank, Ltd.

[Fiscal Period]

FY2023 Q3[Date]

February 10, 2023

[Time]

13:30 – 14:10(Total: 40 minutes, Presentation: 10 minutes, Q&A: 30 minutes)[Venue]Webcast[Number of Speakers]

2Tadayoshi Shinozaki
Taro Kanzawa

Director and Senior Executive Officer,
Group Chief Strategy Officer
General Manager of Corporate Planning
Division

Shinozaki: I’m Mr. Shinozaki. Thank you for your interest in the Bank. I will now begin today’s
meeting by referring to the presentation materials, so please turn to page one.
The first page here is a summary of our financial results. While net interest income increased by 5.6
billion yen compared to the previous year and net fees and commissions were strong, we recordeda loss on the sale of securities due to a rebalancing of our securities portfolio. As a result, grossbusiness profit decreased by 6.7 billion yen. Core business income increased by 12.4 billion yen,reaching a record high Q3 result, in part due to decreased expenses, and reflecting our ongoingstrong core business earnings performance.
Credit-related expenses decreased by 6.1 billion yen and were a net reversal of 3.3 billion yen. As aresult, we achieved record net income both on a non-consolidated and consolidated basis,
representing progress towards the full-year plan of 84.3% and 80.8%, respectively.

1Please turn to page two. On the left is a summary of our consolidated financial results, and on theright is the financial results of the Bank’s subsidiaries.
Chibagin Securities reported a decrease in profits due to the continued impact of our decision tosuspend the sale of structured bonds. Conversely, Chibagin Guarantee reported an increased
profits due to lower credit costs. The total of subsidiaries and the difference between consolidated
and non-consolidated results remained at approximately the same level compared to the previousyear.

2Please now turn to page three. Net interest income from our domestic operations maintained thetrend of offsetting lower yield factors with volume factors. Interest on loans increased by 0.7 billion
yen and stock dividends increased by 1.5 billion yen, resulting in an overall 4.8 billion yen increasein net interest income. Net interest income from our international segment also increased by 0.7billion yen. As a result, overall net interest income increased by 5.6 billion yen, driving top-line
growth.

3Please skip over page four and turn to page five.
Overall loan balances increased by 4.2% compared to the previous year, mainly due to increasedloans to small and medium-sized enterprises as well as residential loans. As a result, the balance ofloans at term-end exceeded 12 trillion yen for the first time. The balance of deposits at term-end
also remained strong, increasing by 4.6% compared to the previous year.

4Please turn to page six.
The average remaining maturity of securities shortened for both yen bonds and foreign bonds. As
for unrealized gains/losses on other securities, valuation losses on yen bonds increased due to theimpact of rising domestic interest rates. However, after taking into account the hedging effect ofinterest rate swaps, overall unrealized gains were 97 billion yen, an improvement of 38.5 billion yen
compared to the nominal figure.

5Please now turn to page seven.
Net fees and commissions remained strong, increasing by 1.3 billion yen compared to the previous
year, while the 2.3 billion yen increase in syndicated loans, etc., was the main driver of corporate
solutions-related income. On the other hand, while the sale of annuities and whole life insurance
performed well, the overall sale of investment trusts and annuities to retail customers declined by
0.8 billion yen.

6Please refer to page eight for more information on our financial products.

7Please turn to page nine.
Regarding the Bank’s cashless operations, the number of franchise locations and number ofcardholders are steadily increasing while the transaction volume is also expanding. The total profitof our cashless operations increased by approximately 381 million yen to 1,346 million yen. The
Group profit total increased by approximately 490 million yen to 2,331 million yen, showing steady
growth as one of the next drivers of net fees and commissions.

8Please turn to page 10.
Credit-related expenses decreased by 6.1 billion yen compared to the previous year resulting in a
net reversal of 3.3 billion yen. Net provisions to the general allowance for loan losses were areversal of 3.5 billion yen, mainly due to a declining cumulative default rate. In addition, new nonperforming loans remained at 3.2 billion yen compared to the full-year plan of 8 billion yen. The
Bank has continued to maintain one of the highest levels of soundness among the regional bankswith a non-performing loan ratio of 0.95%.

9Please now turn to page 11.
General & administrative expenses decreased by 2.3 billion yen, mainly due to lower non-personnel
expenses as a result of lower deposit insurance premiums. Our top-line performance is steadily
improving, which has caused our OHR to decline significantly. Although our capital adequacy ratio
declined due to a decrease in unrealized gains on securities, both our total capital adequacy ratio
and CET1 ratio remained at an adequate level at 11.4 % and 11.28%, respectively.
In conjunction with today’s financial results announcement, we have also announced a 2 yen per
share increase to our full-year dividend payment. This is an indicator of our confidence in our ability
to achieve the consolidated net income target of 60 billion yen and our commitment to increasing
our dividend payout ratio and dividend yield. In addition, we have announced this dividend increase
as a commemorative dividend in celebration of our 80th anniversary this March. We expect that thiswill increase our total shareholder return ratio to over 50%. We will continue to strive to strike abalance between providing returns to our shareholders and making investments designed to ensure
our further growth while maintaining the sound business practices required for the stable supply offunding to Chiba prefecture.
I would now like to talk about a few important topics currently affecting the banking sector.

10Please refer to page 13 for an explanation of the impact of increased yen interest rates.
First of all, with regard to the yen, we expect that the BOJ's review of its YCC policies that occurred
last December will worsen the valuation gains/losses on our bond holdings in the short term.
However, in the long-term, we expect an improvement in net interest income due to the higherinterest rates.
As shown on page six, our net unrealized gains/losses on yen bond holdings were 20.8 billion yen
after taking hedging instruments into account. In preparation for a further rise in interest rates, wesold a portion of our cash bond holdings and futures contracts while purchasing bond bear funds.
As a result, the interest rate sensitivity of yen-denominated bonds, including futures contracts, was4.4 billion yen. After taking into account bond bear funds, the impact of a 10-basis point rise in yen
interest rates is 4.1 billion yen.
However, our expectation is that, over the long-term, rising yen interest rates will lead to an
improved interest margin, particularly for fixed-rate loans and bonds. We estimate that net interest
income during the final year of the next mid-term plan (FY2025) will be approximately 4 billion yen
higher than it would have been without the YCC revision.

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Please now turn to page 14. Next, I will discuss foreign currency interest rates.
As shown in the graph on the left, the total amount of our U.S. Dollar assets and funding wasapproximately 7.3 billion U.S. Dollars, roughly unchanged from 7.4 billion USD as of September 30,2022. We continued to rebalance our foreign bond position in Q3, selling low-yield bonds andrecording a loss of 4.6 billion yen while improving the yield on US dollar-denominated fixed ratebonds from approximately 2.5% to below 3.5% through the timely purchase of high-yield bonds. As
a result, we have been able to secure a positive yield in our overall foreign currency portfolio.
This concludes today’s presentation. Thank you very much for your attendance.

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