*This is a translation of the original document in Japanese. In the event of any discrepancy between the translated document and the Japanese original, the original shall prevail.

Summary of Financial Results
for the Fiscal Year Ended March 31, 2024
May 2024
Financial Highlights ・ ・・・・・・・・ ・ ・ ・ ・ ・ 2
Profits and Losses ・・・・・・・ ・ ・・・・・ ・ ・ 3[Ref.] Forecast and Actual Results Compared ・・・ ・ 4Loans I ・・ ・ ・・ ・ ・・・・・・・・ ・ ・・ ・・ 5Loans II ・ ・・ ・・・・・・・・・ ・ ・ ・・・ ・ ・ 6
Deposits and Assets Under Custody ・・・・・ ・ ・ 7
Securities ・ ・ ・・・・ ・・ ・・・・・・・・ ・・ 8
Yield Trends ・ ・・・ ・・・・・・ ・ ・・・・・・・ 9
Expenses・・ ・ ・・・ ・・・・・・・・・・ ・ ・ ・10
Credit Cost ・ ・ ・ ・ ・ ・ ・・・・・・・・・・・・ 11
Non-performing Loans ・・・・・・ ・・・・・・・・ 12
Capital Adequacy Ratio ・ ・ ・ ・ ・ ・・ ・・・・・ 13
Financial Results Forecast ・ ・ ・・・・・・・・・・ 14
Measures to Improve PBR ・・・・ ・ ・・・・・・・ 15
Topics ・ ・ ・ ・ ・・・ ・ ・・・・・ ・・・・・・・19
Active Measures to Promote Regional
Development ・ ・・・・ ・・・・・ ・・・ ・ ・・・ 20

Financial Highlights<Overview> Despite the impact of a slowdown in the pace of recovery in overseas economies, the economy of Japan underwent a moderate recovery in the fiscal
year ended March 31, 2024, with slight growth in capital investment and personal consumption remaining steady against the backdrop of improved employment
and income conditions. In this environment, deposits remained almost flat, while loans continued to increase steadily. In terms of financial results, core businessnet profit decreased due to the following factors, while both ordinary profit and profit increased from the previous year.
 Although individual and public money deposits performed well, total deposits (average balance), including negotiable certificates of deposit, increased only 0.6
billion yen (0.02% year-on-year) due to a decrease in corporate deposits. On the other hand, the loan balance (average balance) increased by 75.7 billion yen(3.5% YoY) due to steady growth in Tokushima Prefecture and in the Kanto, Chushikoku, and Kansai regions.
 As a result of the absence of factors that increased profits in the previous fiscal year (such as the partial cancellation of asset swap transactions [see Slide 8] due
to rising interest rates) and the decrease in other business profits (excluding gains/losses on bonds), core business net profit decreased to 15.6 billion yen (down
3.6 billion yen YoY).
 Although credit costs increased, ordinary profit and profit increased to 16.2 billion yen (up 1.3 billion yen YoY) and 11.2 billion yen (up 1.0 billion yen YoY),
respectively, as a result of increased gains on securities and the absence of factors that reduced profits in the previous fiscal year (active disposal of unrealized
losses on foreign securities).
 The consolidated capital adequacy ratio (Japanese standard) remained high at 10.72%, reflecting the company's substantial internal reserves and sound asset
holdings.
Total deposits (incl. negotiable certificates¥100 MM of deposit) and loans (average balance)

FY
03/2022FY
03/2023

Total deposits (left axis)

FY
03/2024
Loans (right axis)

Profit¥100 MMFY
03/2022Core netbusiness profit

FY
03/2023
Ordinary
profitCapital Adequacy Ratio (Consolidated)

FY
03/2024
ProfitFY
FY2021FY
FY2022FY
FY202303/2022

03/2023

03/2024

決算概要
Summary of Financial
Results

2

Profits and Losses
Bank Profits and Losses (Non-consolidated)(Unit: Million yen)

03/2022

03/2023

03/2024

vs. 03/2023

Ordinary income

1

52,57672,22959,223(13,005)

Gross business profit

244,61328,48344,587

16,103［Core business gross profit］

3[ 45,904 ］[ 47,081 ］[ 44,232 ］[ (2,849)］

Net interest income

437,98937,40937,026(383)

Net fees and commissions

5

6,952

6,702

7,159

456

Other business profit

6

(328)

(15,628)402

16,0307(1,290)(18,597)

355

18,952

8

28,13927,75528,575820

Gains/losses on bonds
Expenses (excl. temporary processing) （-）
Personnel expenses（-）

912,99813,501

13,847346

Non-personnel expenses

（-）

10

13,272

12,502

12,947

445

Taxes

（-）

11

1,868

1,752

1,780

28

Net business profit of allowance for loan losses)

12

16,474728

16,011

15,283

Core business net profit

13

17,76519,325

15,656(3,669)14

17,57518,85214,800(4,052)(before general provision

Core business net profit(excluding gain/loss fromcancellation of investment trusts)

General provision of allowance for loan losses

15

577

(441)

(302)

139

Net business profit

16

15,896

1,169

16,313

15,144

Temporary profit/loss

17

(233)

13,724(69)(13,794)

（-）

18

2,861

1,519

2,934

1,414

（-）

19

2,613

1,331

2,699

1,368

Processing of non-performing loans
Provision of allowance
for individual loan losses（-）

Recoveries of written-off receivables

20

614

307

938

631

Stock-related profits/losses

21

1,991

15,103

1,939(13,163)

Ordinary profit

22

15,663

14,894

16,2441,350

Extraordinary income/losses

23

(229)

(778)

(651)

126

Profit24

11,03010,144

11,213

1,068

Credit costs (15+18)

（-）

25

3,439

1,078

2,632

1,553

Actual credit costs (15+18-20)

（-）

26

2,824

771

1,693

922

Core business net profit ROA

0.45%

0.49%

0.40%

(0.09)%

Profit ROA

0.28%

0.26%

0.29%

0.03%

Profit ROE
3.91%
3.69%
3.78%
0.09%
*Core business gross profit 3=2-7 Core business net profit 13=3-8*Net business profit 16=2-8-15 (equivalent to operating income in general corporate financial accounting).

Gross business profit (see No. 2 in table) up 16.1 billion yen YoYCore business gross profit (see No. 3) down 2.8 billion yen YoY
 Net interest income: Down 0.3 billion yen YoY due to lower interest on
foreign currency call loans and higher foreign currency funding costs, despite
higher income from interest on loans and discounts and interest anddividends on securities Net fees and commissions: Up 0.4 billion yen YoY due to an increase in
securities-related business fees and corporate fees despite lower sales ofindividual annuities, etc.
 Other business profit: Up 16.0 billion yen YoY due to the absence of lastyear’s extraordinary factors (e.g., gain on cancellation of swaps and loss on
disposal of foreign securities due to partial cancellation of asset swap
transactions caused by rising interest rates).

Core business net profit (see No. 13) down 3.6 billion yen YoY
 Expenses increased 0.8 billion yen YoY, mainly due to higher depreciation andpersonnel expenses associated with system investment. Together with theabove factors, core business net profit decreased by 3.6 billion yen YoY.

Actual credit costs (No. 26) increased by 0.9 billion yen YoY Despite a lower expected loss ratio, general provision of allowance for loan
losses increased by 0.1 billion yen YoY due to additional strengthening ofprovisions for specific industries that were likely to be affected by the 2024
Problem.
 Although the impact of the COVID-19 pandemic was insignificant, provision ofallowance for individual loan losses increased by 1.3 billion yen due torigorous asset assessments.
 Recoveries of written-off receivables was up 0.6 billion yen YoY.

Ordinary profit (see No. 22) increased 1.3 billion yen YoY, while
profit (see No. 24) was up 1.0 billion yen.
 Ordinary profit was up 1.3 billion yen YoY due to the above factors in addition
to a 5.7-billion-yen increase in gains related to securities.
 Profit was up 1.0 billion yen YoY.

決算概要
Summary of Financial
Results3

[Ref.] Forecast and Actual Results Compared Core business gross profit exceeded financial forecasts (released with the Q2 financial statements) by 0.6 billion yen, mainly because net interest income
exceeded the plan, especially interest on loans and discounts. The detailed breakdown is as follows.
●Net interest income exceeded the forecast by 0.3 billion yen due to an increase in interest on loans and discounts (mainly in foreign currencies) andinterest and dividends on securities, despite increased foreign currency funding costs.
●Net fees and commissions exceeded the forecast 0.1 billion yen YoY due to steady growth in securities-related operations and corporate fees comparedto the forecast.
 Core business net profit exceeded the forecast by 0.8 billion yen due not only to the above factors, but also due to lower expenses compared to theforecast.
 Actual credit costs exceeded the forecast by 0.4 billion yen due to an increase in general provision of allowance for loan losses compared to the forecast.
 Due to the factors above, ordinary profit and profit were up 0.8 billion yen and 0.6 billion yen YoY, respectively.
[Ref.] Forecast and Actual Results ComparedNon-consolidated(Unit: 100 million yen)
03/2024 forecast

03/2024 actualCompared

Change (%)

Ordinary income

581

592

11

1.8%

Gross business profit

436

445

9

2.0%

［Core business gross profit］[ 436 ]

[ 442 ][ 6 ]Net interest income

367

370

3

0.8%

Net fees and commissions

70

71

1

1.4%

Other business profits

(1)

4

5

-

Gains/losses on bonds

(0)

3

3

-

Expenses (excl. temporary processing) (-)

288

285

(3)

(1.0)%

Core business net profit

148

156

8

5.4%

Business net profit

152

163

11

7.2%

Ordinary profit

154

162

8

5.1%

Extraordinary income/losses

(6)

(6)

0

-

Net income

106

112

6

5.6%

Total actual credit cost

12

16

4

33.3%

[

1.3% ]

決算概要
Summary of Financial
Results4

Loans I
Loan Balance for Primary Industries(Mar. 31, 2024)¥100 MM The loan balance (average balance) increased by 75.7 billion yen(3.5%) YoY to 2,206.4 billion yen.
 As a result of efforts to strengthen loans to mainstay SMEs based on(Note 2)business potential assessments, general loans increased by 72.2 billion
yen YoY, with the balance increasing in a wide range of industries.

(Note 3)

 Loans to local governments were down 5.5 billion yen YoY.
 As a result of efforts to strengthen the sales force for housing loans,personal loans showed steady growth, increasing 9.0 billion yen YoY.
Manufacturing

Wholesale/Retail

Real Estate

Services*1 Percentages show the proportion compared to overall loans*2 The 238.4 billion yen (10.2%) portion of the Real Estate sector refers to real estate rentals and management.
*3 The 157.9 billion yen (6.7%) portion of the Services sector refers to health and welfare services.

Loan Balance Over Time
Average balance(Unit: 100 Million yen)
09/2021

09/2022

09/2023

03/2022

03/2023

03/2024

vs. 09/2023

20,695

21,17921,734

20,741

21,30622,064329（ 1.51%）

vs. 03/2023
757（ 3.55%）General loans

15,662

16,01916,503

15,715

16,132

16,855352

722

Local governments, etc.

1,866

1,865

1,819

1,837

1,843

1,787

(32)

(55)

Personal loans

3,166

3,293

3,411

3,188

3,330

3,421

9

90

Housing loans

2,923

3,053

3,167

2,947

3,089

3,174

7

85

Ratio personal loans

15.3%

15.5%

15.6%

15.3%

15.6%

15.5%

(0.1)%(0.1)%

vs. 09/2023

vs. 03/2023

Loans

Balance at end of periodLoans

09/2021

09/2022

09/2023

03/2022

03/2023

03/2024

20,59921,28921,997

21,143

21,69623,398

1,401

1,701

General loans

15,606

16,128

16,79816,01916,447

18,167

1,369

1,720

Local governments, etc.

1,807

1,823

1,769

1,865

1,849

1,788

19

(60)

Personal loans

3,185

3,337

3,429

3,258

3,400

3,442

12

41

決算概要
Summary of Financial
Results5

Loans II% Ratio of loans receivable from SMEs and individuals to total loan balance As a result of efforts to strengthen the Bank's business model of lending toSMEs, the average balance of loans in Tokushima Prefecture increased by
24.9 billion yen year on year, while in the Kanto, Chushikoku, and Kansai
regions it increased by 30.8 billion yen, 14.1 billion yen, and 5.8 billion yen,respectively.
 The ratio of loans receivable from SMEs and individuals to the total loanbalance remained high at 78.62%.
03/2020

03/2021

Loan Balance by Region
Average balanceLoans

03/2022

03/2023

03/2024(Unit: 100 Million yen)
09/2021

09/2022

09/2023

03/2022

03/2023

03/2024

vs. 09/2023

vs. 03/2023

20,695

21,17921,734

20,741

21,30622,064329

757

Tokushima Prefecture

11,731

12,21912,424

11,79812,29012,539115

249

Kansai Region

4,448

4,445

4,510

4,440

4,452

4,511

1

58

Chushikoku Region

1,830

1,814

1,930

1,829

1,837

1,979

49

141

Kanto Region

2,685

2,699

2,870

2,672

2,724

3,033

162

308

vs. 09/2023

vs. 03/2023

Balance at end of periodLoans

09/2021

09/2022

09/2023

03/2022

03/2023

03/2024

20,59921,28921,997

21,143

21,69623,398

1,401

1,701

Tokushima Prefecture

11,66012,33012,497

12,125

12,464

13,026528

562

Kansai Region

4,453

4,449

4,529

4,491

4,493

4,592

63

99

Chushikoku Region

1,835

1,783

1,943

1,843

1,934

2,113

170

178

Kanto Region

2,650

2,724

3,027

2,682

2,804

3,665

638

861

vs. 09/2023

vs. 03/2023[Reference]
Balance at end of period
Loan balance to SMEs, etc.

Loan balance to credit guarantee
associations

09/2021

09/2022

09/2023

03/2022

03/2023

03/2024

17,186

17,56917,80817,554

17,91818,396

588

478

2,653

2,662

2,610

2,674

2,735

2,554

(55)

(181)

決算概要
Summary of Financial
Results6

Deposits and Assets Under Custody
Deposit Balances Over Time

 Although retail and public money deposits performed well, total deposits (averagebalance), including negotiable certificates of deposit, increased only 0.6 billion yen(0.02% YoY) to 3,329.4 billion yen due to a decrease in corporate deposits.
 Through our partnership with Nomura Securities Co., Ltd., we act as a one-stop shop
for high value-added comprehensive financial services, such as deposits, insurance,and Nomura Securities products. The target of achieving a 1 trillion yen balance in
Nomura Securities financial intermediary services set at the beginning of thepartnership (to achieve in five years) was achieved two years ahead of schedule.
 Assets under custody from customers—comprising the sum of the end-of-periodbalance of individual annuities, as well as the end-of-period balance of assets undercustody (market value) of stocks, investment trusts, etc. in the financial productintermediary business—increased by 268.8 billion yen YoY to 1,302.5 billion yen.
 The sum of total deposits, individual annuities, and financial product intermediaryaccounts was 4,643.4 billion yen.

Average balance
Deposits(A)

Negotiable certificatesof deposit(B)09/2022(Unit: 100 Million yen)
09/2023

03/2023

03/2024

vs. 09/2023 vs. 03/2023

31,69232,00831,66931,709

(299)

40

1,640

1,586

1,618

1,585

(1)

(33)

Total deposits (A+B)

33,33333,59533,28733,294(300)

6Retail deposits

20,761

20,868

20,776

20,872

3

95

Corporate deposits

9,368

9,421

9,382

9,222

(199)

(160)

Public money deposits

2,737

2,822

2,667

2,720

(101)

53

vs. 09/2023

vs. 03/2023

Balance at end of period

Deposits(A)

Negotiable certificatesof deposit(B)09/2022

09/2023

03/2023

03/2024

31,504

31,461

32,571

32,025

563

(545)

1,340

1,384

(197)

44

1,595

1,582

Total deposits (A+B)

33,10033,04433,911

33,409365(501)

Retail deposits

20,78020,875

20,734

20,91741

182

Corporate deposits

9,353

9,095

9,664

9,222

126

(442)

Public money deposits

2,372

2,586

2,807

2,707

121

(100)

(Total deposits + individual annuities, etc. + financial product intermediary account balances over time (Note 1)(Unit: 100 Million yen)

Balance of assets under custody over time(100 Million yen)

09/2022vs 09/2023

03/2023
Total
deposits

09/2023
Individual
annuities, etc.

03/2024
Financial product intermediaryaccount balances.

(Note 1) The sum of total deposits, individual annuities, etc., and financial
product intermediary account balances.
(Note 2) “Individual annuities, etc.” includes the year-end balances of lumpsum variable insurance, fixed return insurance and whole-life insurance.

09/2023

03/2023

03/2024

vs. 09/2023 vs. 03/2023

Individual annuities, etc. (C) (Note 2)

2,480

2,620

2,439

2,671

51

232

Total financial
product intermediaryaccount balances (D)

8,537

8,910

7,897

10,353

1,442

2,455

Financial instrumentsintermediary accounts
with Nomura Securities(Note 3)

8,430

8,792

7,775

10,219

1,427

2,444

Financial instrumentsintermediary accounts
apart from Nomura
Securities (Notre 4)
Balance of accounts undercustody (C+D)

107

118

121

133

15

11

11,017

11,53010,336

13,025

1,494

2,688

[Ref.] Financial instrumentsintermediary accounts

87,14591,66789,562

95,191

3,524

5,629

(Note 3) In accordance with the Bank's comprehensive business partnership with
Nomura Securities, the Bank's securities accounts (public bonds and investment
trusts) were transferred to a financial instruments intermediary account with Nomura
Securities on June 21, 2021.
(Note 4) This is a financial instruments intermediary account with Shikoku Alliance
Securities Co., Ltd., Daiwa Securities Co. Ltd. and SBI SECURITIES Co. ,Ltd. as
consignors.
決算概要

Summary of Financial Results

7

Securities
 The balance of securities at the end of the period increased to 1,060.2 billion yen (up 114.8 billion yen YoY), mainly due to an increase in shares
resulting from rising stock prices following diversification and expansion of investment activities with an eye on the market environment both athome and overseas, such as monetary policy trends in Japan, the United States and Europe.
 Valuation gain on securities increased 62.4 billion yen YoY to 122.9 billion yen, mainly due to an increase in shares. (shares +49.6 billion yen,bonds -10.0 billion yen, other securities [foreign securities, investment trusts, etc.] +22.8 billion yen)
(Unit: 100 Million yen)

Securities Balance over Time
Balance at end of period

09/2021

Total securities

09/2022

09/2023

03/2022

03/2023

03/2024

9,802

10,184

10,4199,454

10,602417

1,148

Government bonds

1,792

1,351

1,391

1,737

1,475

1,570

178

94

Regional bonds

1,781

1,619

1,650

1,677

1,706

1,585

(64)

(121)

Corporate bonds

1,603

1,988

2,875

1,731

2,638

2,712

(162)

74

Shares

1,526

1,414

1,526

1,439

1,247

1,794

267

546

Other

3,773

3,427

2,741

3,833

2,385

2,939

198

553

Foreign securities

2,212

1,866

840

2,301

691

941

101

250

Investment trusts

1,560

1,561

1,901

1,531

1,694

1,998

97

303

9,213

9,419

9,234

9,366

9,023

9,338

103

314

[Ref.] Average balance

Valuation gains (losses) on securities (Note 1)
End of period

09/2021(Unit: 100 Million yen)

09/2022

09/2023

03/2022

03/2023

03/2024

Duration (Note 2) Over Time
(Yen-denominated bonds)

vs. 09/2023 vs. 03/2023

10,477

Total securities

Years

vs. 09/2023 vs. 03/2023

Total securities

1,124

607

817

834

605

1,229

411

624

Shares

820

703

843

729

599

1,096

252

496

Bonds

71

(14)

(137)

18

(26)

(127)

10

(100)

Other

232

(81)

111

86

31

260

148

228

Domestic securities

65

(140)

(34)

(47)

(13)

(5)

28

8

Investment trusts

167

59

145

133

45

265

120

220

Duration
After considering asset swaps

03/2020 03/2021 03/2022 03/2023 03/2024(Note 2)
Duration is a bond’s average payback period.
Asset swaps are transactions in which coupon
income from government bonds and otherbonds held by a company are converted tofloating interest rates through interest rate
swaps. The duration of foreign currency bonds
is 4.24 years.

(Note 1) Valuation gains (losses) include those on securities and trust beneficiary rights.

決算概要
Summary of Financial
Results

8

Yield Trends
Yields Over Time
 Loan yields increased to 1.17% (up 0.01 percentage points YoY),
partly due to higher interest rates in foreign currencies, despite theimpact of increased competition.
 Yields on securities increased 1.80% (up 0.01 percentage points
YoY), mainly due to higher dividends from mutual funds.
 Yields on financing increased to 1.24% (up 0.01 percentage points
YoY), mainly due to the above factors.
 Cost of financing rose to 1.05% (up 0.05 percentage points YoY) due
to higher foreign currency funding costs and expenses. As a result,the net interest margin decreased to 0.19% (down 0.04 percentage
points YoY).

Loan yields
Yields on securities
Net interest margin (right axis)

03/2020

03/2021

03/2022

03/2023

Yields03/2024(Unit: %)09/2021

09/2022

09/2023

03/2022

03/2023

03/2024

vs. 09/2023 vs. 03/2023

Yields on financing

(A)

1.02

1.13

1.25

1.07

1.23

1.24

(0.01)

0.01

Yields on loans

(a)

1.14

1.14

1.17

1.14

1.16

1.17

0.00

0.01

Yields on securities

1.42

1.66

1.68

1.60

1.79

1.80

0.12

0.01

0.84

0.93

1.11

0.83

1.00

1.05

(0.06)

0.05

Yields on deposits (b)

0.01

0.02

0.02

0.01

0.02

0.02

0.00

0.00

Deposit and loan rate difference (a)－(b)

1.13

1.12

1.15

1.13

1.14

1.15

0.00

0.01

Net interest margin (A)－(B)

0.18

0.20

0.14

0.24

0.23

0.19

0.05

(0.04)

Cost of financing

(B)

決算概要
Summary of Financial
Results

9

Expenses
Adjusted OHR Over Time Expenses increased to 28.5 billion yen (up 0.8 billion yen YoY), mainly due tonon-personnel expenses.
●Personnel expenses increased 0.3 billion yen YoY, mainly due to higher
bonuses.
●Non-personnel expenses increased 0.4 billion yen YoY due to higher
depreciation expenses accompanying system investments and higher one-off
expenses associated with the construction of electrical equipment, etc.
●Taxes are at almost the same level as the previous year.
 The expense ratio (adjusted OHR [see note]) rose to 64.60% (up 5.65
percentage points YoY) due to a significant decrease in core business grossprofit.

03/2020

03/2021

03/2022

03/2023

03/2024(Note) Adjusted OHR = Expenses ÷Core business gross profit (grossbusiness profit - gains/losses on bonds)

Expenses and Adjusted OHR(Unit: 100 Million yen)

09/2021
Expenses

09/2022

09/2023

03/2022

03/2023

03/2024

vs. 03/2023

142

140

146

281

277

285

8

Personnel expenses

65

68

70

129

135

138

3

Non-personnel expenses

66

62

65

132

125

129

4

Taxes

10

9

10

18

17

17

0

64.71%

57.34%

68.38%

61.29%

58.95%

64.60%

5.65%

29.77%

27.83%

32.75%

28.31%

28.67%

31.30%

2.63%

30.10%

25.49%

30.69%

28.91%

26.55%

29.27%

2.72%

Adjusted OHR

Adjusted personnel
expenses OHR

Adjusted non-personnel
expenses OHR

決算概要
Summary of Financial
Results 10

Credit Cost
 Although the impact of the COVID-19 pandemic was insignificant, provisionof allowance for individual loan losses increased to 2.6 billion yen (up 1.3
billion yen YoY) due to rigorous asset assessments. In addition, despite a

Actual Credit Cost and Actual Credit Cost Ratio
100 Million yen
Total actual credit cost
Actual credit cost ratio (right axis)

lower expected loss ratio, general provision of allowance for loan losses
increased by 0.1 billion yen YoY due to additional strengthening ofprovisions for the transportation of road cargo out of concerns over the
impact of the 2024 Problem. As a result, credit costs increased by 1.5
billion yen YoY to 2.6 billion yen.
 After deducting 0.9 billion yen in recoveries of written-off receivables, actual
credit costs increased 0.9 billion yen to 1.6 billion yen, and the actual credit
cost ratio was 0.07%.

03/2020

03/2021

Disposal of non-performing loans

03/2023

09/2022

09/2023

03/2022

03/2023

03/2024
vs.03/2023
2,699
1,368
7
(2)

2,173

843

1,215

2,613

1,331

Repayment of loans

14

6

3

18

9

Provision for contingent loss

82

82

1

102

108

84

(24)

Loss on transfer of receivables

86

46

41

126

70

143

72

Total disposal of non-performing loans (1)

2,357

979

1,262

2,861

1,519

2,934

1,414

General provision of allowance for loan losses (2)

(152)

(463)

(163)

577

(441)

(302)

139

Recoveries of written-off receivables (3)

300

155

738

614

307

938

631

2,204

516

1,098

3,439

1,078

2,632

1,553

0.21%

0.04%

0.10%

0.16%

0.05%

0.11%

0.06%

1,903

360

360

2,824

771

1,693

922

0.18%

0.03%

0.03%

0.13%

0.03%

0.07%

0.04%

Total credit cost(4) [(1) + (2)]Credit cost ratio
Actual total credit cost
Actual credit cost ratio(5) [(1)+(2)-(3)]03/2024(Unit: Million yen)
09/2021

Provision of allowance for individual loan losses

03/2022(Note 1) Credit cost ratio = (4) ÷ average balance of loans during the period (annualized for each September period)(Note 2) Actual credit cost ratio = (5) ÷ average balance of loans during the period (same as above)

決算概要
Summary of Financial
Results 11

Non-performing Loans
100 Million
yen

Loans Disclosed under the Act on
Emergency Measures for the Revitalizationof the Financial Functions Over Time

 Loans disclosed under the Act on Emergency Measures for theLoans to bankrupt
debtors

Revitalization of the Financial Functions fell to 47.7 billion yen (down
1.9 billion yen YoY) as a result of ongoing efforts to facilitate SME

High risk
loans

Loans requiring
special attention

financing, including support for business improvement.
 As a result, the ratio of disclosed loans under the Act on Emergency
Measures for the Revitalization of the Financial Functions increased
to 2.02% (up 0.24 percentage points YoY).

03/2020 03/2021 03/2022 03/2023 03/2024
Loans Disclosed Under the Act on Emergency Measures for the Revitalization of the Financial Functions Over Time
09/2021

09/2022

09/2023

03/2022

03/2023(Unit: Million yen)
03/2024

vs. 09/2023 vs. 03/2023

Loans to bankrupt debtors

16,361

16,253

15,336

15,646

15,58417,500

2,164

1,916

High risk loans

26,795

26,662

27,922

27,15927,38424,756(3,166)(2,628)Loans requiring special attention

7,609

7,211

5,845

7,582

6,794

5,527

(317)

(1,267)

Total disclosed loans

50,76750,127

49,10350,38849,76347,784(1,319)(1,979)2,037,623

2,108,648

2,178,030

2,092,479

2,148,551

2,320,105

142,074

171,553

Ratio of total disclosed loans to total credit
balance (a)／((a)+(b))

2.43%

2.32%

2.20%

2.35%

2.26%

2.02%

(0.18)%(0.24)%

Collateral, guarantees, etc. (d)11,426

11,275

11,664

11,444

11,54911,588(75)

38

Total provision of allowance for loan losses (c)30,66130,89629,78230,30730,637

29,137(644)(1,499)Preservation rate

82.90%

84.13%

84.40%

82.85%

84.77%

85.22%

0.82%

0.45%

Normal loans

(a)
(b)

((c)+(d))/(a)決算概要
Summary of Financial
Results 12

Capital Adequacy Ratio
Capital Adequacy Ratio (Consolidated) Over Time
 Although the capital adequacy ratio (Japanese standard) declined
on both a consolidated basis (10.72%, down 0.49 percentage
points YoY) and non-consolidated basis (10.43%, down 0.46 points
YoY), mainly due to an increase in risk-weighted assets resulting
from enhanced fund management, it remained high overall due toenhanced internal reserves and sound assets held.

09/2021 03/2022 09/2022 03/2023 09/2023 03/2024(Note) After application of transitional measures for figures up to period ending 09/2023(Consolidated) Basel III Standards(Unit: 100 Million yen)
09/2021

Amount of (core) equity

09/2022

09/2023

03/2022

03/2023

03/2024

vs. 2023/9

vs. 03/2023

2,228

2,310

2,376

2,276

2,336

2,399

22

63

2,260

2,340

2,406

2,308

2,367

2,427

21

59

2,195

2,276

2,345

2,239

2,307

2,372

27

65

32

29

29

31

31

27

(1)

(3)

Risk-weighted assets

19,094

20,745

21,37820,12020,826

22,378

1,000

1,551

Capital adequacy ratio

11.66%

11.13%

11.11%

11.31%

11.21%

10.72%(0.39)%(0.49)%

11.30%

10.78%

10.79%

10.97%

10.89%

10.43%(0.36)%(0.46)%

Amount of basic items
Shareholders’ equity related to common shares

Amount of adjusted items(Non-consolidated)
Capital adequacy ratio

決算概要
Summary of Financial
Results 13

Financial Results Forecast
 Although the economy is expected to continue recovering in the fiscal year ending March 31, 2025, the outlook remains extremely uncertain due to thecentral bank monetary trends in various countries, geopolitical risks, and the slowdown of the Chinese economy, which had been growing at a high rate.
Core business gross profit, ordinary profit, and profit are forecast to grow by 0.2 billion yen to 15.8 billion yen, by 0.1 billion yen to 16.3 billion yen and by 0.1
billion yen to 11.3 billion yen, respectively.
Core business gross profit is forecast to grow to 45.2 billion yen (up 1.0 billion yen YoY). The detailed breakdown is as follows.
●Net interest income is projected to increase by 1.9 billion yen YoY due to an increase in the loan balance, centered on funding support for SME
customers, strengthened investment in securities, and other efforts.
●Net fees and commissions are forecast to increase by 0.2 billion yen YoY due to corporate-related commissions and the strengthening of the systemahead of the transformation into a stock business through the partnership with Nomura Securities.
●Foreign currency funding costs are expected to depress other business profits (excluding gains/losses on bonds) by 1.0 billion yen YoY.
 Increases in personnel expenses and other costs are expected to raise expenses to 29.4 billion yen (up 0.9 billion yen YoY) Gains related to securities are forecast to grow to 2.5 billion yen (up 0.3 billion yen YoY) due to the recording of gain on sale of equity securities, etc.
 Actual credit costs are forecast to grow to 2.0 billion yen (up 0.4 billion yen YoY).
Financial Results Forecast for the Fiscal Year Ending March 31, 2025
Non-Consolidated
Actual results 03/2024(Unit: 100 Million yen)

Forecast 09/2024/9 Forecast 03/2025

ChangeOrdinary income

592

281

567

(25)

Gross business profit

445

221

452

7

［Core business gross profit］[ 442 ］[ 221 ］

[ 452 ］

[ 10 ］Net interest income

370

188

389

19

Net fees and commissions

71

37

73

2

Other business profits

4

(5)

(10)

(14)

3

-

-

(3)

285

149

294

9

Core business net profit

156

71

158

2

Net business profit

163

73

161

(2)

Ordinary profit

162

79

163

1

Extraordinary income/losses

(6)

(2)

(3)

3

Net (interim) income

112

53

113

1

Gains/losses related to securities

22

17

25

3

Total actual credit cost

16

9

20

4

Gains/losses on bonds
Expenses (excl. temporary processing)

(-)

決算概要
Summary of Financial
Results 14

Measures to Improve PBR: Recognized Cost of Shareholders’ Equity
The Bank recognizes that the cost of shareholders’ equity based on CAPM is about 5.0%, and the same costbased on the implied cost of capital (return on equity) is about 9.5%–12%. We recognize the discrepancy between
actual results and the targets in the management plan, and that long-term efforts are needed to improve ROE andlower the cost of capital.
The cost of shareholders’ equity recognized by the Bank

Cost of shareholders’ equity basedon CAPM(Calculated by the Bank based on
certain assumptions)
Implied cost of capital(Calculated by dividing ROE by PBR)

Sep. 2008
Financial Crisis

Around
5.0%

Jan. 2016
Adoption of negativeinterest rates

Around
9.5%–12%PBR (x)（ＲＯＥ）[Ref.] Target of the long-term
management plan “Growing beyond
130th”(FYE03/2028)[Actual Results]
FYE03/2023 (consolidated)
FYE03/2024 (consolidated)

4.20%
or higher

FY2005

FY2008FY2011FY2014FY2017

FY2020

FY2023

3.59%
3.68%
決算概要
Summary of Financial
Results 15

Measures to Improve PBR: Initiatives to Raise ROE
Based on the Risk Appetite Framework (RAF), the Bank will endeavor to raise ROE by increasing profitability andappropriately controlling capital levels as described in the long-term management plan.
Improve ＲＯＲＡ
Net income

Raise ＲＯＥ
Net income
Shareholders’ equity

Shareholders’ equity- (Income from assets under custody)
Transform into a stock-oriented businessmodel- Enhance solution revenues such as
consulting, etc.

Value/expense control- Improve productivity by reforming branches,
the loan business, and administration, as wellthrough developing human resources

Credit cost control- Small-sum diversified SME portfolio- Sophistication of management of large-sum
credit customers

×

Cost control

Risk-weighted asset
allocation

Achieve optimal asset allocation balancing profitability and soundness with acommitment to the region

Capital adequacy ratio

Capital adequacy ratio control(March 31, 2028 [consolidated] over 10%)

Financialleverage control
Risk-weighted assets

Enhance revenue without
the use of risk-weighted
assetsTop line enhancement

Risk-weighted assets

Ｒ
Ａ
Ｆ

Utilizerisk-weighted assets- Expand the core business of financing SMEs
・Expand highly efficient financing to large
companies- Enhance securities investments- Utilize capital gains

Further increase ofshareholder returns

Rate of shareholder returns: 40% or more of the profit attributable to ownersof parent
Flexibly repurchase treasury shares in response to the reduction of crossshareholdings and in consideration of financial leverage

Summary of Financial決算概要
Results 16

Measures to Improve PBR: Efforts to Control the Cost of Shareholders’ Equity
To control the cost of shareholders’ equity (in a broad sense), we will strengthen the following six initiatives.
Enhance Corporate GovernanceControlling the cost ofshareholders’ equity

Controlling the cost ofshareholders’ equity (in abroad sense)

Improving profit andgrowth rates

Reduce performancevolatility✔Reduce the gap between forecasts
and actual results

Create “long-term”
shareholders✔Create stable shareholders✔Respond to the unwinding of cross-holdings

Enhance information
disclosure✔Proactively disseminate information(including non-financial information) andengage in external relations

Engage in proactive IR✔Expand dialogue with shareholders andinvestors✔Internally share market demands within thebankSustainability
management initiatives✔Effective use and growth of capital✔Initiatives toward a sustainable regional society✔Enhance ESG investments and financing andsupport the core businessRespond to changes inthe external environment✔Enhance RAF✔Enhance market operations
integrated with client transactions
決算概要
Summary of Financial
Results 17

Measures to Improve PBR
We will steadfastly implement the basic strategies of the long-term management plan and steadily increase profitability.
In addition, we seek to build a profit structure that will enable us to achieve our long-term goal of achieving an ROE in
excess of the cost of shareholders' equity.

To Raise Profitability

Raising Profitability (on a Non-Consolidated Basis)
30

Core business net profit (billion yen)
Net income (billion yen)

25
20

19.3

10

Net income ofover 14.0 bn yen

15.6

15
10.1

20.0
or more11.2- Steadily increase profitability in line with the following basic strategies
as given in the long-term management plan “Growing beyond 130th”

24.0 or more

[Basic Strategies]
1. Develop long-term relationships
2. Implement initiatives toward a sustainable regional society
3. Establish a vibrant organization and diverse ways of working
4. Strengthen management foundations- By further strengthening its partnerships, such as the Shikoku Alliance,
the comprehensive partnership with Nomura Securities, and thepartnership with iBank, the company aims to build a profit structure thatwill enable it to post a stable net income of 12.0 billion yen in four
years' time.

14 .0
or more12.0
or more50

FYE 03/2023(Actual Results)

FYE 03/2024(Actual Results)

FYE 03/2028

Long-term goal

Financial Leverage Policy

Capital Adequacy Ratio and Raising ROE (Consolidated)

18

5.0% or more

Capital adequacy ratio (%)

1654.2% or more
3.59

3.68

4

14
12

3
11.21

10.72

10
8

6

10% or more

10% or more

2
1

FYE 03/2023(Actual Results)

FYE 03/2024(Actual Results)

FYE 03/2028

Long-term goal0

- Pursue excellence in efficient management through the optimal
allocation of management resources and capital by improving thesophistication of RAF, enhancing integrated risk management, andstrengthening ALM.
We plan to accumulate 213.0 billion yen in risk-weighted assets in
our core business of financing for SMEs, and 133.0 billion yen in riskweighted assets in our wholesale strategy.
- The Bank has set a target shareholder return ratio of 40% or more to
be achieved by raising the dividend payout ratio and flexibly acquiring
treasury shares.
- Improve capital efficiency by reducing cross-shareholdings.

決算概要
Summary of Financial
Results 18

Topics
1. Efforts to support customers’ business management
Launched the “Awa Bank e-Contract Service,” which allows customers to conclude loan contracts online (April 2023)
Launched business succession and M&A services at Awagin Consulting Co., Ltd. (May 2023)
In July 2023, established “Awagin Capital Co., Ltd.,” a subsidiary specializing in investment, to contribute to the enhancement of customers’ corporate value
and develop sustainable regional communities through the use of funds. Launched the “Awagin Business Succession Fund” and “Awagin Future Creation
Fund” in October 2023.
To strengthen support for customers' overseas expansion, the Bank has joined the “Overseas Business Support Package” established by Japan Finance Corporation,
SME SUPPORT JAPAN, and NEXI, and started collaboration among the four institutions (October 2023).
Started the “Awagin Disaster Recovery Special Support Fund (Noto Peninsula Earthquake)” to promptly provide financing for disaster recovery and business activities.
Started the "Awagin Emergency Special Financing (for Avian Influenza)" to stabilize cash flows and support the early recovery of business activities.
Held various seminars including the “Practical SDG/ESG Management Seminar,” “Awagin School for Starting Businesses,” and “Decarbonization Seminar for SMEs.”

2. New services and campaigns
Launched Wallet+, a smartphone app that seamlessly connects the “financial and non-financial” as well as the “ordinary and extraordinary,”
offering not only financial functions but also sharing financial information and special coupons from partner companies (April 2023)）
Launched the COTRA service that allows the sending of up to 100,000 yen between individuals and expanded online money transfer services
Implemented support campaigns for Tokushima Vortis, customers setting up their first NISA accounts, and more

3. Regional development through the Shikoku AllianceHeld the “Shikoku Food Export Business Meeting” to connect customers with food buyers in Singapore and create new business opportunities (July 2023)
Partnered with Sompo Japan Insurance Inc. to hold one of the largest exhibitions for nursing care providers in the Shikoku area (January 2024)

4. SDG initiatives, capital policy, and other mattersEstablished the Career Support Section within the Corporate Management Division to support the professional development of individual employees in line with theirdiverse values, and to develop personnel who can respond flexibly to changes in the environment and solve problems on their own initiative (April 2023)
Concluded the “Agreement on Promoting the Use of Wood in Construction to Promote the Use of Wood from Tokushima Prefecture” with Tokushima Prefecture
to promote the use of wood and contribute to the realization of carbon neutrality by 2050 (September 2023)
Established the Keihan Corporate Sales Department (Osaka Branch, Keihan Sub-branch) and Imabari Corporate Sales Department (Matsuyama Branch,
Imabari Sub-branch) to further enhance support structures for customers, such as business matchmaking services, utilizing our bases in Tokushima Prefecture, Kansai,
Kanto and Chugoku-Shikoku (October 2023)
Repurchased 555,000 treasury shares for 1,499 million yen through market purchases (November-December 2023, February-March 2024)
Resolved to increase employee base pay, including starting salaries, as an investment in the Bank’s human capital with the goal of enhancing efforts to increase
added value (April 2024)
Aizumi Branch received the FY2023 Tokushima Universal Design for Community Development Award (March 2024).

決算概要
Summary of Financial
Results 19

Active Measures to Promote Regional Development■The Shikoku Alliance: Enhancing Measures to Revitalize Shikoku●Enhance the attractiveness of the region as the region, customers and the four banks (The Awa Bank, The Hyakujushi Bank, The Iyo Bank, and The Shikoku Bank) grow and develop
sustainably together.
●The independently managed four banks will maintain a healthy competitive relationship while combining their strengths and expertise to tackle the five themes for the growth of Shikoku.

Energize

Utilize

Supporting the core business via the Shikoku Alliance

Shikoku Brand Inc.
●The four banks jointly support the branding andsales channel development for local products
Shikoku Alliance Capital Company Limited●Propose the use of funds that offer support in terms of both

Connect
Industry, Government, Academia, Finance,
Labor, and Media Cooperation●Partner with the Organization for Promotion of Tourism in
SHIKOKU and Shikoku Economic Federation to promote“Shikoku’s Vision for Tourism”●Sponsor and participate in the Shikoku Omotenashi
Henromichi Walk

Business plan contest● Discover entrepreneurs with original businessplans and support their commercialization
Organization of and participation in businessmeetings, social gatherings, and seminars●Held “Nursing Care Market,” one of the largest exhibitions in
the Shikoku area for nursing care providers●Held the Shikoku Alliance × NEXCO West Japan Highway
Business Meeting

Collaborate

Initiatives to support business succession

Regional industry and companies●Launch of the “Awagin Business Succession Fund” and“Awagin Future Creation Fund” by Awagin Capital●Business succession and M&A support by Awagin Consulting

Supporting local economic revitalization

Tourism promotion

The Awa Bank Group

capital and management to resolve issues such as
business succession

Shikoku's Vision for Tourism

NurtureSales offices

Shikoku
Alliance

Collaboration
NomuraSecurities

HQ(Sales Promotion Dept., etc.)

Group companies
Tokushima Economic
Research Institute

Local
gov’t
Universities

Collaboration
Organizations
supporting
local economic
revitalization

Media

Support Measures●Improving corporate competitiveness ●Supporting startups andnew businesses ●Business matchmaking ●Management
improvement and business recovery support ●Overseas businesssupport ●Business succession, inheritance & M&A support●Support for healthcare, nursing, tourism, agriculture, etc.

●Collaboration with East Tokushima and Setouchi DMO●Support for repurposing traditional and vacant houses●Promoting cycling and Shikoku pilgrimage tourism

Support for new businesses and business expansion●Supporting Tokushima University's first start-up company throughindustry-academia collaboration capital● Holding start-up schools and entrepreneurship seminars● Expand sales channels for local products throughthe Lacycle Mall
● Supporting startups through an accelerator program

Support for SDG initiatives● SDG initiative support service, GHG emissions calculation service● Decarbonization support through the use of Green Transformationquestionnaires

Other●Digital transformation (DX) support using DX interviews● Overseas expansion support using international businessquestionnaires

Creating new added value by connecting customers to customers.
Producing a virtuous cycle of sustainable growth and development for both the region and our customers.
This document is intended to provide information on the Bank's performance in fiscal years 2023 and 2024. It is not intended as a solicitation to invest in securities issued by the Bank.
 Note that this document contains forward-looking statements that are subject to change due to changes in the business environment and other factors.

Summary of Financial決算概要
Results 20