Summary of consolidated earnings for the fiscal year ended March 2021
[under Japanese GAAP]May 13, 2021
Company name:
Kyushu Financial Group, Inc.
Stock exchange listings:
Tokyo, Fukuoka
Code number:
7180
URL: http://www.kyushu-fg.co.jp/
Representative: President and Representative Director
Yoshihisa Kasahara
Executive Officer, General Manager of
For inquiry:
Shinichi Yamakata Tel. 096-326-5588
Corporate Planning Dept.
Date of general meeting of shareholders: June 18, 2021
Dividend payment date: June 1, 2021
Trading accounts:
Filing date of securities report:
June 18, 2021
EstablishedSupplemental information for financial: Available
statements
materials detailing consolidated earnings
Investor meeting presentation: Not scheduled ()
to be posted on company website(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
(1) Results of Operation(% represents change from previous fiscal year.)Ordinary income
million yen%

million yen%

million yen%

180,896
172,140

5.0
1.0

21,682
27,033(19.7)(19.8)

15,012
18,261(17.7)(17.7)

Fiscal year ending March 2021
Fiscal year ended March 2020
Note: Comprehensive income

Profit attributable toowners of parent

Ordinary profit

Fiscal year ending March 2021

68,705million yen

Fiscal year ended March 2020

(20,805)million yen

Earnings per share

Diluted earnings
per share

yen

yen

%

%

%

34.12
40.70

－
－

2.3
2.8

0.1
0.2

11.9
15.7

Fiscal year ending March 2021
Fiscal year ended March 2020

Return on equity

Fiscal year ending March 2021 －million yen(Reference) Income from investments in affiliates(equity method):Ordinary profits tototal assets

Ordinary profits toordinary income

Fiscal year ended March 2020 －million yen(2) Consolidated Financial Conditions
Total assets
Fiscal year ending March 2021
Fiscal year ended March 2020
(Reference) Shareholders’ equity

Net assets

Equity-to-asset ratio Net assets per share

million yen

million yen%

yen

12,204,020
11,079,796

683,152
619,7545.5
5.5

1,548.61
1,404.71

Fiscal year ending March 2021

681,254million yen

Fiscal year ended March 2020

617,951 million yen

Note: Shareholders’ equity is total net assets at the end of the period less non-controlling interests at the end of the period. “Equity-to-asset ratio” isshareholders’ equity divided by total assets at the end of the period. Note this “equity-to-asset ratio” is not the capital adequacy ratio specified in the
Ministerial Notification of Capital Adequacy Ratio.

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

million yen

million yen

million yen

million yen

794,763
195,306(3,590)(222,741)(5,322)(11,805)

1,955,589
1,169,723

Fiscal year ending March 2021
Fiscal year ended March 2020

Cash flows from Cash and cash equivalents
financing activities
at the end of the period

2. Dividends
Dividends per share
End of 1Q End of 2Q End of 3Q End of FY

Fiscal year ended March 2020
Fiscal year ending March 2021
Fiscal year ending March 2022
(forecast)

Total

Dividends on
Total
Payout ratio
net assets ratio
dividends (consolidated)(consolidated)

yen

yen

yen

yen

yen

million
yen

%

%

－
－

6.00
6.00

－
－

6.00
6.00

12.00
12.00

5,348
5,278

29.4
35.1

0.8
0.8

－

6.00

－

6.00

12.00

40.9

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022(%: changes from corresponding period of previous fiscal year)
Ordinary income

2Q (cumulative)
Full year

Ordinary profit

million yen%

84,600168,200

(5.7)
(7.0)

million yen

Profit attributable to owners of parent Earnings per share%

million yen%

yen

9,900 (23.8)
18,800 (13.2)

7,100
12,900(23.0)(14.0)

16.13
29.32

Notes:(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries
accompanied by changes in scope of consolidation)(2) Changes in accounting policies, accounting estimates and restatements(i) Changes in accounting policies due to revision of accounting standards

:None
:None

(ii) Changes in accounting policies due to reasons other than (i):None(iii) Changes in accounting estimates:None(iv) Restatements:None(3) Number of common stocks outstanding(i) Number of stocks outstanding at end of period(including treasury stocks):(ii) Number of treasury stocks outstanding at endof period:(iii) Average number of stocks outstanding during
period:Fiscal year ending 463,375,978 Fiscal year ended
March 2021

463,375,978

shares March 2020

Fiscal year ending
March 2021

shares23,464,730 Fiscal year ended

23,464,212

shares March 2020

sharesFiscal year ending 439,911,548 Fiscal year ended
March 2021

448,630,718

shares March 2020

sharesReference: Summary of Non-consolidated Results
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2021(% represents change from previous fiscal year.)(1) Non-consolidated Results of Operation
Operating revenue
Fiscal year ending March 2021
Fiscal year ended March 2020

Operating income

Ordinary profit

Net income

million yen%

million yen%

million yen%

million yen

%

8,992
7,386

21.7
2.7

6,896
5,340

29.1
0.9

7,073
5,454

29.6
3.2

7,066
5,440

29.8
3.9

Earnings per share

Fiscal year ending March 2021
Fiscal year ended March 2020

Diluted earnings per share
Earnings per share

yen

yen

16.06
12.12

－
－

(2) Non-consolidated Financial Conditions
Total assets
Fiscal year ending March 2021
Fiscal year ended March 2020
(Reference)

Shareholders’ equity

Net assets

Equity-to-asset ratio

Net assets per share

million yen

million yen%

yen

462,775
459,129449,939448,151

97.2
97.6

1,022.79
1,018.73

Fiscal year ended March 2020

448,151million yen

Fiscal year ending March 2021

449,939million yen

Note: “Equity-to-asset ratio” is total net assets at the end of the period divided by total assets at the end of the period.
Note this “equity-to-asset ratio” is not the capital adequacy ratio specified in the Ministerial Notification of Capital Adequacy Ratio.

* “Summary of consolidated earnings” is outside the scope of audit by certified public accountants or audit firms.
* Notes on proper use of forecasts, etc.
Statements about the future in this document, including earnings forecasts, are based on the information the Group currently possesses or premisesthat we believe are reasonable. They are not intended to be promises that the Group will achieve the forecasts. Actual results may diverge
significantly from the forecasts.

Contents of Appendix
1. Overview of Results of Operations and Financial Conditions ...……………………………………P.2(1) Overview of Results of Operations ..………………………………………………………………P.2(2) Overview of Financial Conditions ....………………………………………………………………P.3(3) Cash Flows …………………………………………………………………………………………..P.3(4) Future Outlook ………………………………………………………………………………………P.3
2. Basic Views on Selection of Accounting Standards ...………………………………………………P.3
3. Consolidated Financial Statements and Important Notes .....………………………………………P.4(1) Consolidated Balance Sheet ……………………………………………………………………....P.4(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income P.6
Consolidated Statement of Income ………………………………………………………………..P.6
Consolidated Statement of Comprehensive Income …………………………………………….P.7(3) Consolidated Statement of Changes in Shareholders' Equity …………………………………..P.8(4) Consolidated Statement of Cash Flows ……………………………………………………………P.10(5) Notes on Assumptions of Going Concern …………………………………………………………P.11(6) Notes on Consolidated Financial Statements ……………………………………………………P.12(Business Segment Information) ……………………………………………………………………P.12(Per-Share Information) ………………………………………………………………………………P.14(Subsequent Events) …………………………………………………………………………………P.14
4. Non-consolidated Balance Sheet ………………………………………………………………………P.15(1) Balance Sheet ………………………………………………………………………………………P.15(2) Statement of Income …………………………………………………………………………………P.17(3) Statement of Changes in Shareholders' Equity …………………………………………………P.18(4) Notes on Assumptions of Going Concern …………………………………………………………P.18
5. Executive Personnel Changes …………………………………………………………………………P.18(1) Representative Director ……………………………………………………………………………P.18(2) Other Executives ……………………………………………………………………………………P.18
Attachment:
Briefing Material for FY2020 Financial Results

1. Overview of Results of Operations and Financial Conditions(1) Overview of Results of Operations
During the fiscal year under review, which ended March 31, 2021, the Japanese economy faced atough situation as economic activities slowed down, affected by a rapid spread of COVID-19. In the
April-June period, GDP dropped significantly by 29.3% from the previous three-month period in theannualized figure, as a state of emergency was issued across the nation from April to May.
Thereafter, the economy showed some signs of recovery toward the year-end as measures tostimulate demand in tourism, restaurant and service industries gained traction. Toward the year end,
the number of infected people increased and regions across the nation were hit by the third wave of
infection, with the state of emergency announced once again. More recently, while the difficult
situation remains, some signs of recovery are seen, although weakness is felt in some areas.
Under such economic environment, the Nikkei index, which hovered at low levels affected by
COVID-19, recovered to above 30,000 for the first time in three decades and six months in February
2021, as investors took their cue from the global trend of rising stock markets in a positive reaction
to economic measures and monetary easing steps taken by nations, as well as the start ofvaccination. The yen, which was trading around the range between 105 yen and 109 yen to thedollar at the beginning of the fiscal year under review, rose above 102 yen to the dollar amid
concerns for a fresh global spread of infections as the end of 2020 approached. The currency
subsequently trended downward as long-term rates rose in the United States.
Our regional economy continued to face a tough situation overall, as did the rest of the country,
affected by COVID-19 in the fiscal first half, with tourism- and consumer-related sectors slowing
significantly. Consumer- and tourism-related sectors recovered in the fiscal second half, thanks inpart to recovery in production activity and the “Go To” campaign, the government’s economic
stimulus measure. Since the beginning of 2021, there have been areas remaining in tough situations,
including the tourism-related sector, which slumped once again due to the impact from factors suchas suspension of the Go To Travel campaign in response to a renewed spread of COVID-19. Still,signs of recovery are seen overall.
Under such financial-economic environment, in terms of business performance during the fiscal
period under review, ordinary income increased 8,756 million yen from a year earlier to 180,896
million yen as other operating income increased driven by an increase in the number of subsidiaries
and other ordinary income rose thanks to an increase in gain on sales of stocks and other securities.
On the other hand, ordinary expenses increased 14,106 million yen from a year earlier to 159,213
million yen, due mainly to an increase in other operating expenses, driven by an increase in thenumber of subsidiaries, and an increase in other ordinary expenses, pushed up by an increased
provision of allowance for doubtful accounts.
As a result, ordinary profit decreased 5,350 million yen from a year earlier to 21,682 million yen.
Net income attributable to owners of parent decreased 3,248 million yen from a year earlier to
15,012 million yen.
Segment Situations
a. Banking
Ordinary income increased 4,710 million yen from a year earlier to 143,752 million yen, while
segment profit decreased 12,106 million yen from a year earlier to 22,668 million yen.
b. Leasing
Ordinary income increased 4,748 million yen from a year earlier to 37,683 million yen, while
segment profit increased 13 million yen from a year earlier to 1,363 million yen.
c. OtherOrdinary income increased 618 million yen from a year earlier to 9,979 million yen, while segment
profit increased 578 million yen from a year earlier to 1,669 million yen.

(2) Overview of Financial Conditions
In terms of the financial position at the end of the fiscal year under review, total assets increased
1,124.2 billion yen from the end of the previous fiscal year to 12,204.0 billion yen, while net assets
rose 63.3 billion yen from the end of the previous fiscal year to 683.1 billion yen, driven by suchfactors as increases in cash and due from banks and loans.
In terms of balances of key accounts at the end of the period, deposits increased 950.2 billion yen
from the end of the previous fiscal year to 9,509.3 billion yen, driven by such factors as an increasein personal deposits, while negotiable certificates of deposit decreased 59.9 billion yen from the endof the previous fiscal year to 147.3 billion yen, due mainly to a decrease in corporate deposits.
Loans rose 393.4 billion yen from the end of the previous fiscal year to 7,580.3 billion yen due
mainly to increases in those to public entities.
Securities decreased 21.4 billion yen from the end of the previous fiscal year to 2,195.5 billion yen
due mainly to a decrease in foreign securities.
(3) Cash Flows
Cash flow situations and main factors in the period under review are as follows.
Cash flows from operating activities came to a positive 794,763 million yen, driven by such factors
as increased deposits.
Cash flows from investing activities was a negative 3,590 million yen, due to factors including
expenditures for purchasing securities.
Cash flows from financing activities was a negative 5,322 million yen, due to such factors as
dividend payouts.
As a result of the above, cash and cash equivalents at the end of the period came to 1,955,589
million yen.
(4) Future Outlook
The Japanese economy, while still remaining in a tough situation affected by COVID-19, is on arecovery trend. On the other hand, our regional economy remains in an uncertain situation, affectedby COVID-19, although it has moved sideways overall.
Under such circumstances, in terms of earnings forecast for the year ending March 2022, we
expect, on the consolidated basis, ordinary income of 168.2 billion yen, ordinary profit of 18.8 billion
yen and net income attributable to owners of parent of 12.9 billion yen.
In coming up with estimates for the year ending March 2022, we assumed the following figures forthe end of March 2022 and used them as the basis for calculation:- Overnight call rate: -0.050%- Short-term prime rate: 1.975%- Nikkei index: 29,000-31,000 yen
Although we calculated the above earnings estimates based on information available at the time,
including the impact from the spread of the novel coronavirus, we may change them depending on avariety of potential factors, including expansion of impact of the novel coronavirus on our customers.
When we make changes to earnings estimates, we will promptly release them.
2. Basic Views on Selection of Accounting Standards
As our mainstay banking business operates only in Japan, we use the Japanese GAAP, at least forthe present.
At the same time, we will continue a study to determine whether we need to introduce theInternational Financial Reporting Standards, monitoring foreign ownership of our shares and taking into
consideration domestic peers’ moves to introducing the standards.

3. Consolidated Financial Statements and Important Notes(1) Consolidated Balance Sheet(mil. yen)
As of March 31, 2020
Assets:Cash and due from banks

As of March 31, 2021

1,173,509

1,960,030

Call loans and bills bought
Monetary claims purchased

388
14,542

21,145
15,316

Trading assets
Money held in trust

876
18,746

19
16,761

2,216,941
7,186,901

2,195,537
7,580,359

Foreign exchanges
Lease receivables and investments in leases

13,27367,15015,26065,395

Other assets
Property, plant and equipment

285,610
108,885

239,312
111,089

Buildings
Land34,36550,18545,134
49,837

Construction in progress
Other tangible fixed assets

12,925
11,4094,718
11,399Intangible assets
Software

11,011
10,754

10,726
10,470

Other intangible fixed assets
Asset for retirement benefits

256
4,681

255
10,130

Deferred tax assets
Customers' liabilities for acceptances andguarantees
Allowance for loan losses

9,301

941

35,92737,990

Securities
Loans(67,950)(75,997)

11,079,796

12,204,020

8,559,052
207,269

9,509,326
147,356

Call money and bills soldPayables under repurchase agreements

12,733
232,754－
152,526

Payables under securities lending transactions
Trading liabilities

647,31711

706,354
16

Borrowings from other banks
Foreign exchanges

594,94682

859,685
193

Borrowed money from trust account
Other liabilities

2,586
158,2784,788
83,120

2,437
2,101

2,123
1,493

473
0

472
0

37
4,028

11,445
3,971

Total assets
Liabilities:
Deposits
Negotiable certificates of deposit

Liability for retirement benefits
Provision for reimbursement of deposits
Provision for contingent losses
Reserves under special laws
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities

35,92737,99010,460,041

11,520,867

(mil. yen)
As of March 31, 2020
Net assets:
Share capital

As of March 31, 2021

36,00036,000Capital surplus
Retained earnings

199,636
379,006

199,636
388,859

Treasury shares(10,771)(10,771)

Total shareholders’ equity
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Cumulative remeasurements for retirement
benefits
Total accumulated other comprehensive income

603,871

613,723

74,78365,194(61,458)
5,779(2,484)
5,660(5,024)(840)

14,08067,530

1,803

1,898

Non-controlling interests
Total net assets
Total liabilities and net assets

619,754

683,152

11,079,796

12,204,020

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income(mil. yen)
For the fiscal year ended
March 31, 2020
Ordinary income
Interest income

For the fiscal year ended
March 31, 2021

172,140
98,654

180,896
96,832

Interest on loans
Interest and dividends on securities

71,302
26,941

70,99725,318Interest on call loans and bills boughtInterest on deposits

(32)
1

(16)
1

Other interest income
Trust fees

440
41

531
52

Fees and commissions
Trading income

21,284474

21,671
440

Other operating income
Other ordinary income

45,947
5,737

51,617
10,281

21
5,716

6
10,275

145,106
11,834

159,2139,147Interest on deposits
Interest on negotiable certificates of deposit

749
38

576
29

Interest on call money and bills soldInterest on payables under repurchaseagreements
Interest on payables under securities lendingtransactions
Interest on borrowing

50

303

3,058

84

4,451

1,164

Gains on loans written-off
Other ordinary income
Ordinary expenses
Interest expenses

621

484

Other interest expenses
Fees and commissions payments

2,862
8,612

6,502
8,783

Trading expenses
Other operating expenses－
34,227

041,275General and administrative expenses
Other expenses

76,686
13,745

79,123
20,883

1,208
12,537

14,299
6,584

Provision of allowance for doubtful accounts
Other ordinary expenses
Ordinary profit

27,033

21,682Extraordinary income
Gains on disposal of non-current assets

398
398

21
21

Extraordinary losses
Loss on disposal of non-current assets

620
501

304
62

118
0

242
0

Net income before income taxes

26,81021,399

Income taxes - current
Income taxes-deferred

10,177(1,755)

9,823(3,566)

Impairment losses
Other extraordinary losses

Total income taxes

8,421

6,256

Profit
Net income attributable to non-controllingshareholders
Profit attributable to owners of parent

18,38915,142

127

129

18,261

15,012

Consolidated Statement of Comprehensive Income(mil. yen)
For the fiscal year ended
March 31, 2020

For the fiscal year ended
March 31, 2021

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

18,389(39,194)

15,14253,563

15,796(9,595)(53,542)

58,973Remeasurements for retirement benefits(1,449)4,184

Comprehensive income(20,805)

68,705(components:)
Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to noncontrolling interests(20,933)

68,582

127

123

(3) Consolidated Statement of Changes in Shareholders' Equity
For the fiscal year ended March 31, 2020(mil. yen)
Shareholders’ equity
Share capital Capital surplus
Balance at beginning of
period36,000198,362

Retainedearnings
366,087

Treasuryshares(5,270)Total
shareholders’equity595,178

Changes during the period
Changes in stakes due
to acquisition of sharesin consolidated
subsidiaries

1,273

Dividend of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during theperiodBalance as of the end of
the period

1,273(5,418)(5,418)18,261

18,261(5,500)75(5,500)
75

－

1,273

12,918(5,500)8,692

36,000199,636

379,006(10,771)

603,871

Accumulated other comprehensive income
Total
Valuation
Cumulative
Deferred gains
accumulated Non-controlling Total net assets
difference on
Revaluation remeasurement
interests
or losses onotheravailable-forreserve for land s for retirement
hedgescomprehensive
sale securities
benefits
incomeBalance at beginning of
period58,987(7,915)

5,855(3,575)53,3503,788

652,317

Changes during the period
Changes in stakes due
to acquisition of sharesin consolidated
subsidiaries

1,273

Dividend of surplus(5,418)

Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during theperiodBalance as of the end of
the period

18,261(5,500)75
15,796(53,542)(75)(1,449)(39,269)(1,985)(41,254)

15,796(53,542)(75)(1,449)(39,269)(1,985)(32,562)

74,783(61,458)

5,779(5,024)

14,0801,803

619,754For the fiscal year ended March 31, 2021
(mil. yen)
Shareholders’ equity
Share capital Capital surplus
Balance at beginning of
period36,000199,636

Retainedearnings
379,006

Total
shareholders’equityTreasuryshares(10,771)

603,871

Changes during the period
Dividend of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during theperiodBalance as of the end of
the period(5,278)(5,278)15,01215,012
0

119

0
119

－

－

9,853

0

9,852

36,000199,636

388,859(10,771)

613,723

Accumulated other comprehensive income
Total
Valuation
Cumulative
Deferred gains
accumulated Non-controlling Total net assets
difference on
Revaluation remeasurement
interests
or losses onotheravailable-forreserve for land s for retirement
hedgescomprehensive
sale securities
benefits
incomeBalance at beginning of
period74,783(61,458)

5,779(5,024)

14,0801,803

619,754

Changes during the period
Dividend of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during theperiodBalance as of the end of
the period(5,278)15,0120
119(9,589)58,973

(119)

4,184

53,45095

53,545(9,589)58,973

(119)

4,184

53,45095

63,39865,194(2,484)

5,660

(840)

67,5301,898

683,152

(4) Consolidated Statement of Cash Flows(mil. yen)
For the fiscal year ended
March 31, 2020
Cash flows from operating activities
Net income before income taxes
Depreciation expenses
Impairment losses
Amortization of goodwill
Increase/(decrease) in allowance for doubtful
accounts(Increase)/decrease in assets for retirement benefits
Increase/(decrease) in liability for retirement benefits
Increase/(decrease) in provision for losses on
inactive-account reimbursement
Increase/(decrease) in provision for contingent
lossesInterest income

For the fiscal year ended
March 31, 2021

26,81021,399

7,421
118

8,102
242

935

－

(374)

8,046

1,176
(406)

(5,449)
(313)

(165)

(608)

(10)

-1

(98,654)(96,832)

Interest expenses
Losses/(gains) on securities

11,834
93

9,147(6,675)Losses/(gains) on money held in trust
Foreign exchange losses/(gains)

125
(434)

(12)
(1,338)

Loss/(gain) on disposal of non-current assets
Net decrease/(increase) in trading assets
Net decrease/(increase) in loans and bills
discounted
Net increase/(decrease) in deposits
Net increase/(decrease) in negotiable certificates ofdeposit
Net increase/(decrease) in borrowed money(excluding subordinated borrowings)
Decrease/(increase) in dues from banks (excluding
dues from Bank of Japan)
Net decrease/(increase) in call loans
Net increase/(decrease) in call money
Net increase/(decrease) in payables under
repurchase agreements
Net increase/(decrease) in payables under
securities lending
Net decrease/(increase) in foreign exchanges assets
Net increase/(decrease) in foreign exchanges liabilities
Net decrease/(increase) in lease receivable andinvestments in lease
Net (increase)/decrease in collateral pledged forfinancial instruments, etc.
Net increase/(decrease) in due to trust accounts
Proceeds from fund management

103
306

41
857

(333,762)(393,458)

244,222950,274(45,457)(59,912)

175,897

264,738

(24)

(654)

477
12,733(21,531)(12,733)

25,124(80,228)

167,970

59,036(853)(1,987)(90)

111(4,405)

1,755(79,779)

71,208

2,586
101,516

2,202
99,919Payments for finance
Other(10,648)
3,521(9,830)(1,267)

Subtotal

207,910804,245

Income taxes paid

(12,604)(9,482)

Cash flows from operating activities

195,306

794,763(mil. yen)
For the fiscal year ended
March 31, 2020
Cash flows from investing activities
Payments for purchase of securities

For the fiscal year ended
March 31, 2021

(1,676,373)(626,561)

278,355
1,196,256

309,564
321,750

Payments for increase in money held in trust
Proceeds from decrease in money held in trust(8,450)8,102(15,796)
17,517

Payments for purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets(14,592)
524(6,945)
166

Payments for purchase of intangible fixed assets
Payments for purchase of subsidiary shares thataltered the scope of consolidation(5,163)(3,285)(1,400)－Cash flows from investing activities(222,741)(3,590)Cash flows from financing activities
Payments for purchase of treasury stock(5,500)0

Dividends paid
Dividends paid to non-controlling shareholders
Payments for purchase of subsidiary shares that did
not alter the scope of consolidation(5,418)0(5,278)
(43)

(886)

－

Cash flows from financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of theperiodCash and cash equivalents at the end of the period(11,805)(5,322)8

15(39,231)785,865

1,208,955

1,169,723

1,169,723

1,955,589

Proceeds from sale of securities
Proceeds from redemption of securities(5) Notes on Assumptions of Going Concern
Not applicable.

(6) Notes on Consolidated Financial Statements
Business Segment Information
Business Segment Information
1. Overview of Reportable Segments
The reportable segments are Group constituents for which separate financial information isavailable and which are subject to the Company’s regular reviews aimed at deciding allocation ofmanagement resources and assessing business performance.
The Group mainly provides banking service, as well as other financial services, including leasing
service, and has reportable segments of “banking” and “leasing.”
The banking segment operates deposit, lending, exchange and securities services, while theleasing segment operates leasing and lending services.
Note that the leasing service includes the leasing and lending segment of JR Kyushu FG Lease,Inc. which we purchased on October 2, 2019.
2. Method for Calculating Ordinary Income, Profits or Losses, Assets and Other Items of Each
Reportable Segment
Profit figures for reportable segments are ordinary profit figures.
Internal ordinary income from intersegment transactions is based on transaction prices with third
parties.
3. Information on Amounts of Ordinary Income, Profits or Losses, Assets and Other Items of Each
Reportable Segment
For the fiscal year ended March 31, 2020(mil. yen)
Business segment
Banking

Other
Leasing

Total

Total

Amountbooked on
Adjustment consolidated
financialstatements

Higo Bank

KagoshimaBank74,09863,327

137,426

31,184

168,610

5,324

173,935(1,794)

172,140

534

1,081

1,616

1,749

3,366

4,036

7,402

(7,402)－

Total

74,63364,408139,042

32,934

171,976

9,360

181,337(9,197)

172,140

Segment profit

18,55916,216

34,775

1,349

36,125

1,090

37,215(10,182)

27,033

Segment assets

6,018,601

31,696 11,183,611(103,814)

11,079,796

Subtotal

Ordinary income
Ordinary income earned
from external customers
Internal ordinary income
from intersegment
transactions

5,027,719 11,046,321

105,593 11,151,915

Other items
Depreciation expenses

3,833

2,970

6,803

118

6,921

333

7,255

165

7,421

Interest income

52,442

48,238100,680

110

100,791

180

100,971(2,317)98,654

Interest expenses

8,507

3,381

11,889280

12,16940

12,210(376)

11,834

Increase in tangible andintangible fixed assets

6,260

11,655

17,916

117

18,033291

18,324

1,642

19,967

Note: 1. Ordinary income is reported instead of sales reported by nonfinancial companies.
2. The “Other” segment is a business segment not included in the reportable segments. These include a credit
card service.
3. Adjustments include the following:(i) Downward adjustment of 1,794 million yen in ordinary income earned from external customers includes adownward ordinary income adjustment of 1,865 million yen associated with the use of the purchaseaccounting method.
(ii) The downward adjustment of 10,182 million yen in segment profit includes a downward profit adjustment of
8,514 million yen associated with the use of the purchase accounting method and 935 million yen in theamortization of goodwill.
(iii) Segment assets and interest expenses of the other items are mainly elimination of intersegment transactions.
(iv) Downward adjustment of 2,317 million yen in interest income, included in the other items, include a
downward adjustment of 1,421 million yen in interest income associated with the use of the purchaseaccounting method.
(v) Adjustments in depreciation expenses and increase in tangible and intangible fixed assets, included in otheritems, include depreciation expenses not allocated to segments, and increases in tangible and intangible fixed
assets.
4. Segment profit is adjusted with ordinary profit in the Consolidated Statement of Income.

For the fiscal year ended March 31, 2021
(mil. yen)
Business segment
Banking
Other
Leasing

Total

Total

Amountbooked on
consolidated
Adjustment
financialstatements

Higo Bank

KagoshimaBank72,843

68,333

141,176

36,094

177,271

5,928

183,199(2,302)

180,896

946

1,629

2,576

1,588

4,164

4,051

8,215

(8,215)－

Total

73,78969,963

143,752

37,683

181,435

9,979

191,415(10,518)

180,896

Segment profit

12,253

10,414

22,668

1,363

24,032

1,669

25,701(4,018)21,682

Segment assets

6,618,074

35,616 12,307,516(103,496)

12,204,020

Subtotal

Ordinary income
Ordinary income earned
from external customers
Internal ordinary income
from intersegment
transactions

5,547,434 12,165,508

106,391 12,271,900

Other items
Depreciation expenses

3,925

3,500

7,425

103

7,529

370

7,899

202

8,102

Interest income

51,30448,084

99,389181

99,571

178

99,750(2,917)

96,832

Interest expenses

6,708

2,480

9,189

283

9,472

35

9,508

(361)

9,147

Increase in tangible andintangible fixed assets

4,112

2,478

6,590

108

6,698

181

6,880

3,676

10,556

Note: 1. Ordinary income is reported instead of sales reported by nonfinancial companies.
2. The “Other” segment is a business segment not included in the reportable segments. These include a credit
card service.
3. Adjustments include the following:(i) Downward adjustment of 2,302 million yen in ordinary income earned from external customers includes adownward ordinary income adjustment of 2,410 million yen associated with the use of the purchaseaccounting method.
(ii) The downward adjustment of 4,018 million yen in segment profit includes a downward profit adjustment of
2,419 million yen associated with the use of the purchase accounting method, as well as elimination ofintersegment transactions.
(iii) Segment assets and interest expenses of the other items are mainly elimination of intersegment transactions.
(iv) Downward adjustment of 2,917 million yen in interest income, included in the other items, includes adownward adjustment of 1,042 million yen in interest income associated with the use of the purchaseaccounting method, as well as elimination of intersegment transactions.
(v) Adjustments in depreciation expenses and increase in tangible and intangible fixed assets, included in otheritems, include depreciation expenses not allocated to segments, and increases in tangible and intangible fixed
assets.
4. Segment profit is adjusted with ordinary profit in the Consolidated Statement of Income.

Per-Share Information
For the fiscal year ended
March 31, 2020

For the fiscal year ended
March 31, 2021

1,404.71 yen

1,548.61 yen

40.70 yen34.12 yen－－

Net assets per share
Earnings per share
Diluted earnings per share

Note: 1. Net assets per share are based on the following:
As of March 31, 2020

As of March 31, 2021

619,754

683,152

1,803

1,898

millionyen(1,803)(1,898)millionyen

617,951

681,254(thousandshares)439,911439,911

Net assets per share
Total net assets
Amount deducted from total net assets
including non-controlling interestsof
Net assets related to common stock at
the end of the period

millionyen
millionyen

Number of common stock outstandingat the end of the period, used to
calculate net assets per share

2. Net income per share were calculated based on the following:
For the fiscal year ended
March 31, 2020

For the fiscal year ended
March 31, 2021

18,261

15,012

18,261

15,012448,630

439,911

Earnings per share
millionyen
Profit attributable to owners of parent million
related to common shares
yen
Average number of common stock (thousand
outstanding during the period
shares)Profit attributable to owners of parent

3. Diluted net income per share is not reported as there are no latent shares.
Subsequent Events
Not applicable.

4. Non-consolidated Balance Sheet(1) Balance Sheet(mil. yen)
As of March 31, 2020

As of March 31, 2021

Assets:Current assets
Cash and deposits
Income taxes receivable
Consumption taxes receivable
Prepaid expenses
Other

1,296
1,101

1,299
1,447

222
26

－
29

34

11

2,680

2,788

Buildings
Furniture and fixtures

3,228
134

3,098
103

Land
Lease assets

1,448
3

1,448
2

Construction in progress

1,024

4,665

Total property, plant and equipment

5,838

9,318

Software94

89

Total intangible fixed assets

94

89

14
450,45814
450,458

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Investments and other assets
Investment securities
Shares in affiliates
Other
Total investments and other assets

24

24450,497

450,497

Total non-current assets

456,431459,905

Deferred assets
Development expenses

17

81

Total deferred assets

17

81

459,129

462,775

Total assets
Liabilities:
Current liabilities
Short-term borrowings

7,100

9,000

Amounts payable
Accrued expenses

0
11

0
12

Dividends payable
Accrued corporation tax, etc.

45
21

44
18

Accrued consumption tax, etc.
Deposits

－
0

152
0

7,179

9,228

3,705
3

3,515
3

89

89

Total current liabilities
Fixed liabilities
Long-term borrowings
Lease obligations
Other
Total fixed liabilities
Total liabilities

3,798

3,607

10,977

12,836

(mil. yen)
As of March 31, 2020

As of March 31, 2021

Net assets:
Shareholders’ equity
Share capital
Capital surplus

36,00036,000Legal capital surplus
Other capital surplus

9,000
406,051

9,000
406,051

Total capital surplus

415,051

415,051

7,871

9,659

Retained earnings
Other retained earnings
Retained earnings brought forward

7,871

9,659

Treasury shares

Total retained earnings(10,771)(10,771)

Total shareholders’ equity

448,151449,939448,151449,939459,129

462,775

Total net assets
Total liabilities and net assets

(2) Statement of Income(mil. yen)
For the fiscal year ended
March 31, 2020

For the fiscal year ended
March 31, 2021

Operating revenue
Affiliate dividend income

5,418

7,078

Affiliate fees received

1,968

1,913

Total operating revenue

7,386

8,992

2,045

2,096

2,045

2,096

5,340

6,896

0
121

0
200

Operating expenses
Selling, general and administrative expenses
Total operating expenses
Operating income
Non-operating revenues
Interest income
Rent income
Miscellaneous income

18

18

Total non-operating revenues

139

219

Interest expenses
Miscellaneous losses

25
－

41
0

Total non-operating expenses

25

41

Ordinary profit

5,454

7,073

Net income before income taxes

5,454

7,073

Income taxes - current

13

6

Total income taxes

13

6

5,440

7,066

Non-operating expenses

Profit(3) Statement of Changes in Shareholders' Equity
For the fiscal year ended March 31, 2020(mil. yen)
Shareholders’ equity
Capital surplus

SharecapitalBalance at beginning of
periodChanges during theperiodOther
capitalsurplus9,000

406,051

Other
retainedearnings
Total capital
Retained
surplusearnings
brought
forward415,051

Total
retainedearnings

7,848

7,848

Dividend of surplus(5,418)

Profit5,440

Purchase of treasury
sharesTotal changes during
the period
Balance as of the endof the period

36,000LegalcapitalsurplusRetained earnings
Total
Treasuryshareholder
sharess’ equity(5,270)Total net
assets453,629453,629(5,418)(5,418)(5,418)

5,440

5,440

5,440

(5,500)(5,500)(5,500)

－

－

－

－

22

22

(5,500)(5,477)(5,477)36,0009,000

406,051

415,051

7,871

7,871

(10,771)448,151

448,151

For the fiscal year ended March 31, 2021
(mil. yen)
Shareholders’ equity
Capital surplus

SharecapitalBalance at beginning of
periodChanges during theperiodOther
capitalsurplus9,000

406,051

Other
Retainedearnings
Total capital
Retained
surplusearnings
brought
forward415,051

Total
retainedearnings

Total
Treasuryshareholder
sharess’ equity

Total net
assets(10,771)448,151

448,151

7,871

7,871

Dividend of surplus(5,278)(5,278)(5,278)(5,278)

Profit

7,066

7,066

7,066

7,066

0

0

0

Purchase of treasury
sharesTotal changes during
the period
Balance as of the endof the period

36,000LegalcapitalsurplusRetained earnings

－

－

－

－

1,787

1,787

0

1,787

1,787

36,0009,000

406,051

415,051

9,659

9,659

(10,771)449,939449,939(4) Notes on Assumptions of Going Concern
Not applicable.
5. Executive Personnel Changes(1) Representative Director
Not applicable.
(2) Other Executives
Personnel changes involving other executives are detailed in a news release dated February 26, 2021
entitled, “Personnel Changes in Executive Positions of the Company and Subsidiaries.”

Briefing Material
for FY2020 Financial Results

May 2021

Table of Contents

I

Summary of FY2020 Financial Results

II

Overview of FY2019 Financial Results

…………

1

[Consolidated KFG] [Non-consolidated] …………
[Two banks combined] [Non-consolidated] …………
[Two banks combined] [Non-consolidated] …………
[Consolidated KFG] [Non-consolidated] …………
[Two banks combined] …………

7
10
10
11
11

1. Risk-management loans
2. Allowance for loan losses
3. Coverage ratio for risk-management loans
4. Loans based on the Financial Reconstruction Act[Two banks combined] [Non-consolidated] …………
[Two banks combined] [Non-consolidated] …………
[Two banks combined] [Non-consolidated] …………
[Two banks combined] [Non-consolidated] …………

12
13
13
14

5. Self-assessment results/loans based on the
Financial Reconstruction Act/risk-management loans[Two banks combined] [Non-consolidated] …………

15

6. Loans by industry
7. Balance of deposits and loans
8. Assets under management[Two banks combined] [Non-consolidated] …………
[Two banks combined] [Non-consolidated] …………
[Group total] [Non-consolidated] …………

18
22
23

[Consolidated KFG] [Non-consolidated] …………
[Two banks combined] [Non-consolidated] …………

24
25

1. Profit and loss
2. Net business profits
3. Interest margin
4. Capital adequacy ratio (Domestic standard)
5. ROE

III

IV

Loans

Other
1. Securities
2. Number of officers/employees and branches

V

Reference material (financial statements of subsidiary banks)[Non-consolidated] …………

[Consolidated KFG]:

Consolidated figures of Kyushu Financial Group[Group total]:

Sum of non-consolidated figures for Higo Bank, Kagoshima Bank,and Kyushu FG Securities[Two banks combined][Non-consolidated]

Sum of non-consolidated figures for Higo Bank and Kagoshima Bank
Non-consolidated figures for Higo Bank or Kagoshima Bank

26

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

I. Summary of FY2019 Financial
1. Profit and loss

Results[Consolidated KFG]
• Gross income from business: 111,411 million yen
Gross income from business decreased by 320 million yen year on year to 111,411 million yen as interest and dividend
income increased but gains on government and other bonds decreased.
• Ordinary profit: 21,682 million yen
Ordinary profit decreased by 5,350 million yen year on year to 21,682
million yen as stock-related profit increased but gross income from business decreased and credit costs increased.
• Net income attributable to owners of parent: 15,012 million yen
As a result of the above, net income attributable to owners of parent decreased by 3,248 million yen from a year earlier to
15,012 million yen.

(mil. yen)

FY2020vs. FY2019

Reference[Two banks combined]

FY2019FY2020Ordinary income

180,896

8,756

172,140

143,761

Gross income from businessvs. FY2019

4,719

111,411(320)

111,731

105,120(425)

Interest and dividend income

87,688864

86,82390,203

1,408

Fees and commissions

12,939225

12,713

10,946

(535)

440

(33)

474

32

4

Other net income from business

10,342(1,377)

11,7193,938(1,302)of which gain or loss on
government and other bonds

2,907(2,756)

5,664

2,893

(2,768)Net trading income

Expenses (excluding non-recurring expenses)

77,7001,846

75,85472,5142,414

Effective net business profits

33,710(2,166)35,87732,606(2,840)Core net business profits

30,802589

30,212

29,712(72)

Core net business profits(excluding net gains/losses oninvestment trust cancellation)

31,288

1,318

29,96930,049507(i) Provision for general allowance
for loan losses

6,197

5,443

754

6,123

5,494

Net business profits

27,512(7,610)35,122

26,482(8,335)

Non-recurring profit or loss

(5,829)2,260(8,089)(3,813)(3,771)

8,532

7,505

1,026

8,061

7,547

(19)

12

(31)

(19)

8

Equity securities-related profit or loss

3,776

9,543

(5,766)

5,169

3,712

Other non-recurring profit or loss

(1,093)234(1,328)(940)

72(ii) Disposal of non-performing loans(iii) Other credit costs

21,682(5,350)27,033

22,668(12,106)

Extraordinary profit or loss

(283)

(61)

(222)

(495)

125

Profit before income taxes

21,399(5,411)

26,81022,173(11,981)

Total of corporate income taxes

6,256(2,164)

8,421

6,029

(4,028)

129

1

127

Net income attributable to owners of parent

15,012(3,248)18,261

16,143(7,953)Credit costs ( (i) + (ii) + (iii) )14,711

12,962

1,748

14,165

13,050Ordinary profit

Net income attributable tonon-controlling shareholders--

Note: 1. Gross income from business = (interest income - interest expenses + costs corresponding to money held in trust) + (revenues from fees
and commissions - costs associated with fees and commissions) + (trading income - trading expenses) + (other operating income - otheroperating expenses)
2. Effective net income from business = net income from business + provision for general allowance for doubtful accounts
3. Net income from core business = net income from business + provision for general allowance for doubtful accounts- gain or loss on government and other bonds+B19
4. Sum of the two banks’ net income figures is shown in profit attributable to owners of parent

1

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Profit and loss: Higo Bank [Non-consolidated](mil. yen)

FY202073,78952,21844,597
6,117
32
1,471
956
36,232
15,98615,029Ordinary income
Gross income from business
Interest and dividend income
Fees and commissions
Net trading income
Other net income from businessof which gain or loss on government and other bonds

Expenses
Effective net income from business
Net income from core businessvs. FY2019

FY2019

(844)
(470)
660
(214)
4
(920)
(2,243)695(1,165)
1,078

74,633
52,68843,936
6,331
28
2,391
3,200
35,536
17,151
13,951

Net income from core business(excluding net gains/losses on investment trust cancellation)

15,057

1,080

13,977(i) Provision for general allowance for doubtful accounts

Net business profits
Non-recurring profit or loss(ii) Disposal of non-performing loans(iii) Other credit costs
Equity securities-related profit or loss
Other non-recurring profit or loss
Ordinary profit
Extraordinary profit or loss
Net income before income taxes
Total of corporate income taxes
Net Income

1,905
14,081(1,827)
3,270
(19)
1,746
(322)
12,253(192)
12,061
3,384
8,677

1,818
(2,983)(3,322)
3,020
5
(148)
(147)
(6,305)(259)(6,564)(2,381)(4,183)87
17,064
1,494
249
(24)
1,894
(174)
18,55967
18,626
5,765
12,860Credit costs ( (i) + (ii) + (iii) )

5,156

4,844

312

Profit and loss: Kagoshima Bank [Non-consolidated](mil. yen)

FY2020vs. FY2019

FY201969,972
52,90245,605
4,829
2,466
1,936
36,282
16,61914,683

5,563
44
747
(320)
(382)
(524)
1,719
(1,675)(1,150)64,40852,85744,858
5,150
2,849
2,461
34,562
18,294
15,833

Net income from core business(excluding net gains/losses on investment trust cancellation)

14,992(572)

15,565(i) Provision for general allowance for doubtful accounts

Net business profits
Non-recurring profit or loss(ii) Disposal of non-performing loans(iii) Other credit costs
Equity securities-related profit or loss
Other non-recurring profit or loss
Ordinary profit
Extraordinary profit or loss
Net income before income taxes
Total of corporate income taxes
Net Income

4,218
12,401(1,986)
4,790
0
3,422
(618)
10,414(303)
10,111
2,644
7,466

3,676
(5,351)
(449)
4,526
3
3,860
219
(5,801)384(5,416)(1,646)(3,769)542
17,752(1,536)
264
(3)
(437)
(837)
16,216(688)
15,527
4,291
11,236

Credit costs ( (i) + (ii) + (iii) )

9,009

8,206

802

Ordinary income
Gross income from business
Interest and dividend income
Fees and commissions
Other net income from businessof which gain or loss on government and other bonds

Expenses
Effective net income from business
Net income from core business

2

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

2. Total deposits and assets under management
Total deposits (end-of-term balance)(100 mil. yen)

End of Mar. 2021

Total deposits
Individuals
Corporations
Public entities, etc.
Total deposits
Individuals
Corporations
Public entities, etc.
Total deposits
Individuals
Corporations
Public entities, etc.

Two banks
combined[Nonconsolidated]

Higo Bank[Nonconsolidated]

KagoshimaBank[Nonconsolidated]

96,72464,717
25,101
6,906
51,267
34,376
13,0853,805
45,45730,34012,0153,101

End of Sep.
2020

End of Mar. 2020

vs. end of Mar. 2020

8,932
4,707
3,601
623
4,492
2,215
1,780
496
4,439
2,491
1,821
126

87,79260,00921,4996,283
46,77532,161
11,305
3,308
41,017
27,848
10,194
2,974

93,54362,931
23,402
7,209
49,58833,601
12,112
3,874
43,95529,32911,2903,335

Note: Total deposits are sum of deposits and negotiable certificates of deposit
Publicentities,(100 mil. yen)

100,000

87,792
6,283

85,8136,329

80,00060,00040,00020,0000Corporations
公共他
法人
etc.
Individual
Total deposits (by depositor)
個人

21,12021,49958,36260,009End of Mar.

2019年3月末
2019

End of Mar.

2020年3月末
2020

Total deposits (by bank)(100 mil. yen)

96,724
6,906

100,000

25,10180,00060,00020,0000

End of Mar.

2021年3月末
2021

85,81387,792

46,23046,77539,58241,01745,457

End of Mar.

2021年3月末
2021

End of Mar.

2019年3月末
2019

2020年3月末
2020

Assets under management (end-of-term balance)
End of Mar. 2021

Group total

Individuals
Public bonds
Investment trusts
Personal annuities, etc.

Kyushu FG Securities
Assets under management

Higo Bank[Nonconsolidated]

Individuals
Public bonds
Investment trusts
Personal annuities, etc.

Assets under management

KagoshimaBank[Nonconsolidated]

Individuals
Public bonds
Investment trusts
Personal annuities, etc.

Kagoshima
鹿児島銀行

96,72451,26740,00064,717

Assets under management

Higo Bank
肥後銀行

13,193
11,642559
1,024
10,057
1,434
5,966
5,870
292
593
4,984
5,793
5,771
267
431
5,072

(100 mil. yen)vs. end of Mar. 2020

949
465
100
64
300
491
321
327
142
35
150
136
△
137
42
29
150

End of Mar. 2020

12,244
11,176
459
960
9,757
942
5,644
5,543
150
558
4,834
5,656
5,633
309
401
4,922

Note: Personal annuities, etc. is the cumulative total sales of annuities, whole life insurance, etc. policies.

3

End of Mar.

End of Sep.
2020

12,768
11,448
529
1,030
9,888
1,201
5,829
5,733
242
598
4,892
5,737
5,715
287
431
4,996

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

3. Loans
Loans (end-of-term balance)(100 mil. yen)

End of Mar. 2021

[Nonconsolidated][Nonconsolidated]

72,54675,863

Corporations

36,099870

35,22935,766

Individuals

26,520963

25,55625,951

Public sector

13,873

2,113

11,76014,14538,3491,384

36,964

38,239Corporations

19,325754

18,571

18,951

Individuals

12,241371

11,86912,037

Public sector

6,782

258

6,523

7,250

38,1442,562

35,581

37,624

Corporations

16,773115

16,657

16,815

Individuals

14,279591

13,687

13,913Public sector

7,091

1,854

5,236

6,895

Loans

KagoshimaBank[Nonconsolidated]

End of Sep. 2020

3,947

Loans
Higo Bank

End of Mar. 2020

76,493Loans

Two banks
combinedvs. end of Mar. 2020

PublicLoans (by borrower)(100 mil. yen)entities
公共,Corporations
個人

法人
Individuals

80,00068,96010,53672,546
11,76024,25725,556

26,52034,16635,22936,09920,000End of Mar.

2020年3月末
2020

End of Mar.

2021年3月末
2021

End of Mar.

060,00040,00020,000080,00076,4932019年3月末
2019

13,873

Total loans (by bank)(100 mil. yen)

72,546

68,96060,000Higo Bank
肥後銀行
Kagoshima
鹿児島銀行

76,49334,88436,96438,34934,07535,581

38,144End of Mar.

2021年3月末
2021

40,000End of Mar.

2019年3月末
2019

2020年3月末
2020

End of Mar.

4. Securities(100 mil. yen)

End of Mar. 2021
Amount onbalance
sheet

KFG[Nonconsolidated]

KagoshimaBank[Nonconsolidated]

vs. end of
Mar. 2020

Net
Amount onbalanceunrealized
sheet
gains/loss

Net
Amount onbalanceunrealized
sheet
gains/loss

(264)

924

(138) 21,778

1,063

20,8581,246

Stocks

1,465

207

494

359

1,257

135

1,289

291

Bonds

11,841(85)37(121) 11,926

159

11,701

101

Other

8,207

(386)

392

(376)

8,593

769

7,867

853

13,135(166)626(178) 13,302

804

12,858874

Stocks

629

46

263

152

583

111

542

172

Bonds

8,058

52

33

(111)

8,006

144

7,894

87

Other

4,447

(265)

329

(219)

4,712

548

4,422

614

8,355

(101)

499

10

8,456

489

7,977

582

Stocks

818

158

402

189

660

213

730

293

Bonds

3,782

(137)

16

(19)

3,920

36

3,807

30

Other

3,754

(122)

80

(159)

3,876

239

3,439

257

Available-for-sale securities

Higo BankNet
unrealized
gains/loss

End of Sep. 2020

21,514

Available-for-sale securities[Consolidated]

vs. end of
Mar. 2020

End of Mar. 2020

Available-for-sale securities

4

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

5. Loans based on the Financial Reconstruction Act(100 mil. yen)

End ofMar. 2021
Loans based on the Financial Reconstruction Act (A)Two banks
combined

Bankrupt or De facto Bankrupt

Doubtful loans

Special attention loans[Nonconsolidated] Normal loans
Total credit (B)Ratio vs. total credit (A)/(B)Loans based on the Financial Reconstruction Act (A)Bankrupt or De facto Bankrupt

Doubtful loans

Higo Bank

Special attention loans[Nonconsolidated] Normal loans
Total credit (B)Ratio vs. total credit (A)/(B)Loans based on the Financial Reconstruction Act (A)Kagoshima
Bank

Bankrupt or De facto Bankrupt

Doubtful loans
Special attention loans[Nonconsolidated] Normal loans

Total credit (B)Ratio vs. total credit (A)/(B)

1,500
1,000

1,522
164
723
634
75,702
77,225
0
620
91
365
163
38,074
38,694
0
902
72
358
471
37,62838,5310

End ofSep. 2020

1,345
210
623
511
71,86473,209
0
558
120
317
120
36,71037,268
0
786
90
305
391
35,15435,941
0

1,456
171
671
613
75,07076,527
0
627
97
345
184
37,921
38,548
0
829
74
326
428
37,14937,978
0

177
(46)
100
123
3,838
4,016
0
62
(28)
47
43
1,364
1,426
0
115
(17)
53
80
2,474
2,590
0

1.91%

1.97%

1.83%

2.00%

1,522
164

1,332
176

1,345
210

686

623

469

511

634

End of Mar.
2019年3月末
2019

End of Mar.
2020年3月末
2020

End of Mar.
2021年3月末
2021

Bankrupt or De facto
破産更生債権及びこれら
Bankrupt
Doubtfulloansに準ずる債権Special attention loans

危険債権
Doubtful
loans

1.00%

723

要管理債権
Specialattention loans

5000End ofMar. 2020

Loans based on the Financial Reconstruction Act (Two banks combined)(100 mil. yen)

2,000

vs. end of
Mar. 2020

0.00%

総与信に占める割合
Percentage
vs. total credit

6. Capital Adequacy Ratio(100 mil. yen)

End ofMar. 2021(i) Capital adequacy ratio (ii)/(iii)

KFG(ii) Shareholders’ equity (core capital)[Consolidated] (iii) Risk assets, etc.

(iv) Total required capital (iii) x 4%(i) Capital adequacy ratio (ii)/(iii)

Higo Bank (ii) Shareholders’ equity (core capital)[Nonconsolidated] (iii) Risk assets, etc.

(iv) Total required capital (iii) x 4%(i) Capital adequacy ratio (ii)/(iii)

Kagoshima(ii) Shareholders’ equity (core capital)Bank[Non(iii) Risk assets, etc.
consolidated](iv) Total required capital (iii) x 4%

11.08%
6,235
56,2292,249
10.34%
2,881
27,8691,114
10.60%
2,929
27,6191,104

5

vs. end of
Mar. 2020

0.19%
160
471
18
0.03%
61
517
20
0.35%
81
(160)
(6)

End ofMar. 2020
10.89%
6,075
55,7582,230
10.31%
2,820
27,352
1,094
10.25%
2,848
27,7801,111

End ofSep. 2020
11.11%
6,168
55,5212,220
10.55%
2,883
27,305
1,092
10.48%
2,890
27,5731,102

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

7. Performance forecasts
KFG (consolidated)(1) FY2021 consolidated forecasts(100 mil. yen)

1H

Full year

Full FY2020 (actual)

Ordinary income

846

1,682

1,808

Ordinary profit

99

188

216

71

129

150

Net income attributable to owners ofparent(2) Annual dividend forecast
Interim
FY2021Year-end

6.00 yen

Total

6.00 yen

12.00 yen

Reference(1) [Two banks combined] [Non-consolidated] Mid-term earnings forecast(100 mil. yen)

FY1H2021

FY1H2020 (actual)
Higo Bank(Non-consolidated)[Two banks combined]

Kagoshima Bank
(Non-consolidated)[Two banks combined]

Ordinary income

646

336

310

716

Ordinary profit

101

36

65

153

Net income

75

25

50

114

Credit costs

50

30

20

41

(2) [Two banks combined] [Non-consolidated] Full-year earnings forecast(100 mil. yen)

Full FY2021

Full FY2020 (actual)
Higo Bank(Non-consolidated)[Two banks combined]

Kagoshima Bank
(Non-consolidated)[Two banks combined]

Ordinary income

1,298

683

615

1,437

Ordinary profit

191

86

105

226

Profit

136

61

75

161

Credit costs

120

60

60

141

6

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

II. Overview of FY2020 Financial Results
1. Profit and loss

[Consolidated KFG]

(mil. yen)

FY2020Ordinary income
Gross income from business
Interest and dividend income
Fees and commissions
Net trading income
Other net income from business

FY2019

vs. FY2019

Gains on sale
Losses on sale
Gains on redemption
Losses on redemption
Write-down
Expenses (excluding non-recurring expenses)
Effective net income from business
Net income from core business

180,896
111,41187,68812,939440
10,342
2,907
10,216
7,308－－－
77,70033,71030,802

8,756
(320)
864
225
(33)
(1,377)(2,756)
206
2,962
－
－
－
1,846
(2,166)589

172,140
111,731
86,823
12,713474
11,7195,664
10,0104,345－－－
75,85435,87730,212

Core net business profits(excluding net gains/losses on investment trust cancellation)

31,288

1,318

29,969(i) Provision for general allowance for loan losses

Net income attributable to owners of parent

6,197
27,512(5,829)
8,532
12
6
3,776
8,462
4,508
176
(1,093)
21,682(283)
242
21,3999,823(3,566)129
15,012

5,443(7,610)
2,260
7,505
2
(15)
9,543
4,345
2,500
(7,698)234(5,350)(61)
123(5,411)(353)(1,810)1(3,248)754
35,122(8,089)1,026
10
21(5,766)
4,116
2,007
7,875
(1,328)27,033(222)
118
26,81010,177(1,755)
127
18,261Credit costs ( (i) + (ii) - (iii) - (iv) )14,711

12,962

1,748

of which gain or loss on government and other bonds

Net business profits
Non-recurring profit or loss(ii) Disposal of non-performing loans(iii) Gains on reversal of provision for contingent loss(iv) Gains on loans written-off
Equity securities-related profit or loss
Gains on sale
Losses on saleWrite-down
Other non-recurring profit or loss
Ordinary profit
Extraordinary profit or lossof which impairment losses
Profit before income taxes
Corporation, inhabitants and enterprise taxes
Income taxes-deferred
Net income attributable to non-controlling shareholders

Note: 1. Gross income from business = (interest income - interest expenses + costs corresponding to money held in trust) +(revenues from fees and commissions - costs associated with fees and commissions) + (trading income - trading expenses)+ (other operating income - other operating expenses)
2. Effective net income from business = net income from business + provision for general allowance for doubtful accounts
3. Net income from core business = net income from business + provision for general allowance for doubtful accounts- gain or loss on government and other bonds

Number of consolidated subsidiaries(companies)

End of FY2020
Number of consolidated subsidiaries

18

7

End of FY2019

Change－18

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Profit and loss: Higo Bank [Non-consolidated](mil. yen)

FY2020Ordinary income
Gross income from business
Interest and dividend income
Fees and commissions
Net trading income
Other net income from businessof which gain or loss on government and other bonds

Gains on sale
Losses on sale
Gains on redemption
Losses on redemption
Write-down

Expenses
Personnel expenses
Non-personnel expenses
Taxes
Effective net income from business
Net income from core business
Net income from core business(excluding net gains/losses on investment trust cancellation)(i) Provision for general allowance for loan losses

Net business profits
Non-recurring profit or loss(ii) Disposal of non-performing loans(iii) Gains on reversal of reserve for contingent losses(iv) Gains on loans written-off
Equity securities-related profit or loss
Gains on sale
Losses on saleWrite-down
Other non-recurring profit or loss
Ordinary profit
Extraordinary profit or lossof which impairment losses
Net income before income taxes
Corporation, inhabitants and enterprise taxes
Income taxes-deferred
Net Income

vs. FY2019

FY201973,78952,21844,597
6,117
32
1,471
956
4,877
3,920
－
－
－
36,232
17,807
16,0282,395
15,98615,029

(844)
(470)
660
(214)
4
(920)
(2,243)(2,472)
(229)
－
－
－
695
765
(8)
(61)
(1,165)
1,078

74,633
52,68843,936
6,331
28
2,391
3,200
7,350
4,149
－
－
－
35,536
17,041
16,037
2,457
17,151
13,951

15,057

1,080

13,977

1,905
14,081(1,827)
3,270
12
6
1,746
5,085
3,338
0
(322)
12,253(192)
203
12,061
3,935
(551)
8,677

1,818
(2,983)(3,322)
3,020
5
(11)
(148)
2,042
2,413
(222)
(147)
(6,305)(259)
203(6,564)(692)(1,689)(4,183)87
17,064
1,494
249
6
17
1,894
3,043
925
223
(174)
18,55967－
18,626
4,627
1,138
12,860Note 1. Effective net business profits = net business profits + allowance for loan losses
2. Core net business profits = net business profits + allowance for loan losses - gain or loss on government andother bonds

Credit costs ( (i) + (ii) - (iii) - (iv) )

5,156

8

4,844

312

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Profit and loss: Kagoshima Bank [Non-consolidated](mil. yen)

FY2020Ordinary income
Gross income from business
Interest and dividend income
Fees and commissions
Net trading income
Other net income from businessvs. FY2019

FY201969,972
52,90245,605
4,829
－
2,466
1,936
5,324
3,388
－
－
－
36,282
16,82016,404
3,057
16,61914,683

5,563
44
747
(320)
－
(382)
(524)
2,667
3,192
－
－
－
1,719
582
482
654
(1,675)(1,150)64,40852,85744,858
5,150
－
2,849
2,461
2,657
196
－
－
－
34,562
16,23815,921
2,403
18,294
15,833

Net income from core business(excluding net gains/losses on investment trust cancellation)

14,992(572)

15,565(i) Provision for general allowance for loan losses

4,218
12,401(1,986)
4,790
－
0
3,422
4,667
1,042
202
(618)
10,414(303)
236
10,111
4,843(2,198)
7,466

3,676
(5,351)
(449)
4,526
(3)
0
3,860
3,158
402
(1,104)219(5,801)384(312)(5,416)386(2,032)(3,769)542
17,752(1,536)
264
3
0
(437)
1,509
639
1,307
(837)
16,216(688)
549
15,527
4,457(165)
11,236of which gain or loss on government and other bonds

Gains on sale
Losses on sale
Gains on redemption
Losses on redemption
Write-down

Expenses
Personnel expenses
Non-personnel expenses
Taxes
Effective net income from business
Net income from core businessNet business profits
Non-recurring profit or loss(ii) Disposal of non-performing loans(iii) Gains on reversal of provision for contingent loss(iv) Gains on loans written-off
Equity securities-related profit or loss
Gains on sale
Losses on saleWrite-down
Other non-recurring profit or loss
Ordinary profit
Extraordinary profit or lossof which impairment losses
Net income before income taxes
Corporation, inhabitants and enterprise taxes
Income taxes-deferred
Net Income

Note 1. Effective net business profits = net business profits + allowance for loan losses
2. Core net business profits = net business profits + allowance for loan losses - gain or loss on governmentand other bonds

Credit costs ( (i) + (ii) - (iii) - (iv) )

9,009

9

8,206

802

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

2. Net business profits(mil. yen)

Two banks combined
FY2020Effective net business profits

32,606

vs. FY2019(2,840)Higo Bank (Non-consolidated)

FY2019FY202035,446

15,986

vs. FY2019(1,165)

Kagoshima Bank (Non-consolidated)

FY2019FY202017,151

16,619

vs. FY2019(1,675)FY201918,294Per employee (thousand yen)

7,954

(705)

8,660

7,875

(561)

8,436

8,032

(848)

8,881

Net business profits

26,482(8,335)34,817

14,081(2,983)

17,064

12,401(5,351)

17,752Per employee (thousand yen)

6,460

(2,045)

8,506

6,936

(1,457)

8,393

5,993

(2,624)

8,617

Note: The figures are calculated using the average number of employees, excluding those on loan, during the period under review.

3. Interest margin
All branches:(%)

Two banks combined
FY2020vs. FY2019

Higo Bank (Non-consolidated)

FY2019FY2020vs. FY2019

Kagoshima Bank (Non-consolidated)

FY2019FY2020vs. FY2019

FY2019(1) Investment yield (A)

1.01(0.06)

1.07

0.98(0.06)

1.04

1.04(0.07)

1.11(a) Yield on loans

0.94(0.06)

1.00

0.90(0.06)

0.96

0.98(0.06)

1.04(b) Yield on securities

1.37(0.06)

1.43

1.31(0.06)

1.37

1.46(0.08)

1.54

0.74(0.08)

0.82

0.71(0.09)

0.80

0.78(0.08)

0.86(a) Interest rate on deposits(b) Interest rate on
external liabilities

0.00(0.00)

0.00

0.00(0.00)

0.00

0.00(0.01)

0.01

0.12(0.57)

0.69

0.12(0.57)

0.69

0.12(0.58)

0.70(3) Net interest margin (A)−(B)

0.27

0.02

0.25

0.27

0.03

0.24

0.26

0.01

0.25

(2) Cost of funds (B)Note: Interest rate on external liabilities is the aggregate interest on call money, payables under repurchase agreements, deposits received under securities
lending transactions, and borrowed money.

Domestic business segment:(%)

Two banks combined
FY2020vs. FY2019

Higo Bank (Non-consolidated)

FY2019FY2020vs. FY2019

Kagoshima Bank (Non-consolidated)

FY2019FY2020vs. FY2019

FY2019(1) Investment yield (A)0.93(0.04)

0.97

0.87(0.02)

0.89

0.99(0.06)

1.05(a) Yield on loans

0.94(0.04)

0.98

0.90(0.03)

0.93

0.97(0.06)

1.03(b) Yield on securities

1.04(0.05)

1.09

0.88(0.04)

0.92

1.33(0.04)

1.37

0.71(0.05)

0.76

0.66(0.05)

0.71

0.77(0.05)

0.82(a) Interest rate on deposits

0.00

0.00

0.00

0.00

(0.00)

0.00

0.00(0.00)

0.00

0.00(0.01)

0.01

0.01(0.01)

0.02(0.00)

0.00(0.00)(3) Net interest margin (A)−(B)

0.22

0.01

0.21

0.21

0.03

0.18

0.22

(0.01)

0.23(2) Cost of funds (B)(b) Interest rate on
external liabilities

Note: Interest rate on external liabilities is the sum of interest on call money, deposits received under securities lending transactions,and borrowed money.

10

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

4. Capital adequacy ratio (Domestic standards)[Consolidated KFG]

(mil. yen)

End ofMar. 2021(i) Capital adequacy ratio(iv)/(v)vs. end of Sep. 2020 vs. end of Mar. 2020

End ofSep. 2020

End ofMar. 2020

11.08%-0.03%

0.19%

11.11%

10.89%(ii) Basic core capital

638,089

10,12019,622627,969

618,467(iii) Adjustment core capital

14,517

3,445

3,594

11,071

10,923(iv) Shareholders’ equity (core capital) (ii) - (iii)623,571

6,674

16,027

616,897

607,5445,622,990

70,857

47,1055,552,132

5,575,885

224,919

2,834

1,884

222,085

223,035(v) Risk assets, etc.
(vi) Total required capital (v) x 4%
Higo Bank (Non-consolidated)(mil. yen)

End ofMar. 2021(i) Capital adequacy ratio(iv)/(v)(ii) Basic core capital(iii) Adjustment core capital(iv) Shareholders’ equity (core capital) (ii) - (iii)(v) Risk assets, etc.
(vi) Total required capital (v) x 4%

vs. end of Sep. 2020 vs. end of Mar. 2020

End ofSep. 2020

10.34%-0.21%

0.03%

10.55%

10.31%

296,098

364

6,667

295,734

289,430

7,910

482

516

7,428

7,394

288,187

(117)

6,151

288,305

282,036

2,786,990

56,472

51,7242,730,517

2,735,266

111,479

2,258

2,068

109,220

109,410

vs. end of Sep. 2020 vs. end of Mar. 2020

End ofSep. 2020

End ofMar. 2020

Kagoshima Bank (Non-consolidated)(mil. yen)

End ofMar. 2021(i) Capital adequacy ratio(iv)/(v)(ii) Basic core capital(iii) Adjustment core capital(iv) Shareholders’ equity (core capital) (ii) - (iii)(v) Risk assets, etc.
(vi) Total required capital (v) x 4%

10.60%

0.12%

0.35%

10.48%

10.25%

300,339

3,399

7,265

296,939

293,074

7,382

(545)

(868)

7,927

8,251

292,956

3,944

8,133

289,011284,822

2,761,968

4,665(16,062)2,757,303

2,778,030

110,478

186

(642)

110,292

111,121

5. ROE[Two banks combined](%)

FY2020Net income basis
Note: ROE =End ofMar. 2020

2.52

vs. FY2019(1.34)Net Income(Net assets at beginning of period + net assets at end of period) / 2

11

FY20193.86
x 100

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

III. Loans
1. Risk-management loans
Note: Partial direct write-off method is not used.

[Two banks combined](mil. yen)

Total loans (end-of-term balance)

7,649,337

62,980394,720

7,586,357

7,254,617

0.06
1.06
0.00
0.82
1.96

(0.02)
0.06
－
0.02
0.08

(0.04)
0.05
－
0.12
0.14

0.08
1.00
0.00
0.80
1.88

0.10
1.01
0.00
0.70
1.82

End ofMar. 2021 vs. end of Sep. 2020 vs. end of Mar. 2020
2,648
(1,159)(2,016)42,886
2,581
3,920
－
(203)
(180)
16,379(1,895)
4,508
61,914(677)
6,231

End ofSep. 2020
3,807
40,305203
18,27562,591

End ofMar. 2020
4,665
38,965
180
11,871
55,683

3,834,901

10,953

138,457

3,823,947

3,696,443

0.07
1.12
－
0.43
1.61

(0.03)
0.06(0.01)(0.05)(0.02)(0.06)
0.06(0.00)
0.11
0.11

0.10
1.05
0.01
0.48
1.64

0.13
1.05
0.00
0.32
1.51

End ofMar. 2020
2,921
34,489－39,10576,516

Risk-management
loans

Restructured loans
Total

End ofMar. 2021
5,109
81,381
11
63,474
149,976

Loans to borrowers declared bankrupt

Past due loans
Loans in arrears by more than 3 months

vs. end of Sep. 2020

vs. end of Mar. 2020

(962)
5,417
(192)
2,356
6,619

(2,477)
7,925(169)
12,497
17,776End ofSep. 2020
6,072
75,964
203
61,117
143,357

End ofMar. 2020
7,586
73,455180
50,977132,200(%)

Ratios vs. totalloans

Loans to borrowers declared bankrupt

Past due loans
Loans in arrears by more than 3 months

Restructured loans
Total

Higo Bank (Non-consolidated)

Risk-management
loans

Loans to borrowers declared bankrupt

Past due loans
Loans in arrears by more than 3 months

Restructured loans
Total

Total loans (end-of-term balance)(mil. yen)(%)
Ratios vs. totalloans

Loans to borrowers declared bankrupt

Past due loans
Loans in arrears by more than 3 months

Restructured loans
Total

Kagoshima Bank (Non-consolidated)
End ofMar. 2021
Loans to borrowers declared bankrupt
2,461
Past due loans
38,494Loans in arrears by more than 3 months
11
Restructured loans
47,094
Total
88,061vs. end of Sep. 2020

vs. end of Mar. 2020

197
2,836
11
4,252
7,296

(460)
4,005
11
7,989
11,545

3,814,436

52,026

256,262

3,762,410

3,558,174

0.06
1.00
0.00
1.23
2.30

－
0.06
0.00
0.10
0.16

(0.02)
0.04
0.00
0.14
0.15

0.06
0.94
－
1.13
2.14

0.08
0.96
－
1.09
2.15

Risk-management
loans

Total loans (end-of-term balance)(mil. yen)

End ofSep. 2020
2,264
35,658－42,84280,765(%)
Ratios vs. totalloans

Loans to borrowers declared bankrupt

Past due loans
Loans in arrears by more than 3 months

Restructured loans
Total

12

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

2. Allowance for doubtful accounts[Two banks combined](mil. yen)

End ofMar. 2021
Allowance for loan losses

vs. end of Sep. 2020

vs. end of Mar. 2020

7,526
3,740
3,786

8,104
6,123
1,980

72,74524,71048,035General allowance for loan losses
Specific allowance for loan losses

End ofSep. 2020
65,21920,97044,248Higo Bank (Non-consolidated)

End ofMar. 2020
64,641
18,58646,054(mil. yen)

End ofMar. 2021
Allowance for loan losses

vs. end of Sep. 2020

vs. end of Mar. 2020

1,374
157
1,217

1,908
1,905
3

23,927
6,505
17,422

General allowance for loan losses
Specific allowance for loan losses

End ofSep. 2020
22,553
6,347
16,205

Kagoshima Bank (Non-consolidated)
vs. end of Sep. 2020

vs. end of Mar. 2020

6,152
3,582
2,569

6,195
4,218
1,977

48,81818,20530,612

General allowance for loan losses
Specific allowance for loan losses

22,0184,600
17,418(mil. yen)

End ofMar. 2021
Allowance for loan losses

End ofMar. 2020

End ofSep. 2020
42,666
14,622
28,043End ofMar. 2020
42,622
13,98628,635

3. Coverage ratio for risk-management loans
Note: Partial direct write-off method is not used.

[Two banks combined](%)

End ofMar. 2021
Coverage ratio

vs. end of Sep. 2020

vs. end of Mar. 2020

3.01

(0.39)

48.50

End ofSep. 2020

End ofMar. 2020

45.49

48.89

Note: Coverage ratio figures for two banks combined, Kagoshima Bank and Higo Bank= (allowance for doubtful accounts / risk-management loans) x 100

Higo Bank (Non-consolidated)(%)

End ofMar. 2021
Coverage ratio

vs. end of Sep. 2020

vs. end of Mar. 2020

2.61

(0.90)

38.64

End ofSep. 2020

End ofMar. 2020

36.03

39.54

Kagoshima Bank (Non-consolidated)(%)

End ofMar. 2021
Coverage ratio

vs. end of Sep. 2020

vs. end of Mar. 2020

2.61

(0.27)

55.43

13

End ofSep. 2020

End ofMar. 2020

52.82

55.70

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

4. Loans based on the Financial Reconstruction Act
Note: Partial direct write-off method is not used.

[Two banks combined](mil. yen)

End ofMar. 2021

vs. end of Sep. 2020 vs. end of Mar. 2020

End ofSep. 2020

End ofMar. 2020

Doubtful loans
Special attention loans
Normal loans
Total credit (B)Ratio vs. total credit (A)/(B)152,297
16,421
72,39063,485
7,570,294
7,722,592
1.97%

6,655
(730)
5,221
2,164
63,197
69,8530.07%

17,774(4,616)
10,063
12,327
383,852
401,6270.14%

145,641
17,152
67,16861,321
7,507,097
7,652,739
1.90%

134,522
21,03862,326
51,157
7,186,442
7,320,964
1.83%

Coverage amount (C)Allowance for loan losses
Reserve for specific debtors
Coverage ratio (C) / (A)124,854
64,69260,16181.98%

9,274
6,827
2,446
2.63%

16,091
6,526
9,565
1.13%

115,579
57,86557,71479.35%

108,762
58,16650,59580.85%

Loans based on the Financial Reconstruction Act (A)Bankrupt or De facto Bankrupt

Higo Bank (Non-consolidated)(mil. yen)

End ofMar. 2021

vs. end of Sep. 2020 vs. end of Mar. 2020

End ofSep. 2020

End ofMar. 2020

Doubtful loans
Special attention loans
Normal loans
Total credit (B)Ratio vs. total credit (A)/(B)62,0409,135
36,524
16,3793,807,443
3,869,483
1.60%

(685)
(603)
2,017
(2,098)15,275
14,590-0.03%

6,204(2,867)
4,744
4,327
136,421
142,6250.10%

62,725
9,739
34,506
18,4783,792,167
3,854,893
1.63%

55,83512,00331,77912,052
3,671,022
3,726,857
1.50%

Coverage amount (C)Allowance for loan losses
Reserve for specific debtors
Coverage ratio (C) / (A)49,564
19,881
29,68379.89%

1,315
979
336
2.97%

4,088
781
3,307
-1.56%

48,24918,902
29,34776.92%

45,476
19,09926,37681.45%

Loans based on the Financial Reconstruction Act (A)Bankrupt or De facto Bankrupt

Kagoshima Bank (Non-consolidated)(mil. yen)

End ofMar. 2021

vs. end of Sep. 2020 vs. end of Mar. 2020

End ofSep. 2020

End ofMar. 2020

Doubtful loans
Special attention loans
Normal loans
Total credit (B)Ratio vs. total credit (A)/(B)90,257
7,285
35,866
47,105
3,762,851
3,853,108
2.34%

7,341
(126)
3,204
4,263
47,921
55,2620.16%

11,569(1,749)5,318
8,000
247,431
259,001
0.16%

82,916
7,412
32,66142,842
3,714,930
3,797,846
2.18%

78,687
9,034
30,547
39,1053,515,419
3,594,107
2.18%

Coverage amount (C)Allowance for loan losses
Reserve for specific debtors
Coverage ratio (C) / (A)75,28944,81130,47783.41%

7,959
5,848
2,110
2.21%

12,003
5,745
6,258
2.99%

67,32938,96328,36681.20%

63,28539,06624,21980.42%

Loans based on the Financial Reconstruction Act (A)Bankrupt or De facto Bankrupt

14

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

5. Self-assessment results/loans based on the Financial Reconstruction Act/risk-management loans[Two banks combined](100 mil. yen)Self-assessment results (by borrower classification)
Scope: Credit-related claims including loans*After write-downs and allowancesClassificatio

Credit balance

Classification

vs. end of Mar. 2020

Category I Category II Category IIICategory IV

34

17(100 mil. yen)
Risk-management loans

Scope: Substandard loans include loans only

Scope: Loans

The remainder is credit-related claims including loans
Classification

Bankrupt
51(100 mil. yen)
Loans based on the Financial Reconstruction Act－－

Credit balance

Bankrupt or
De facto
Bankrupt(25)

De facto
bankrupt

164

112

75

37

－

Amountcovered bycollateral/guarantee

Coverageamount

64

99

(%)

Coverageratio

Balance

Loans toborrowers
declaredbankrupt
100.0

51

Past due
loans

813

－

(21)
In danger ofbankruptcy

Doubtful
loans

723

539

153

31

723

313

379

95.7

100
Special attention

Special attention loans

717

70

Need attention

634

223

167

61.6

1,522
Normal loans

601

646

81.9

647
Subtotal146“Needs attention” excluding “special attention”

Loans in arrears bymore than 3 months

0634

Restructured loans

Total

1,499

Ratio of loans based on the Financial Recon Ratio of risk-management lo

4,516

NormalClassification

1,099

3,417

1.97%

1.96%

1,293

(including local governments)

71,116

Total

71,116

2,517
77,23872,935

4,272

31

Total

75,702－

4,012

77,225

Definitions of borrower classification
Bankrupt

Legally and formally bankrupt

De facto bankrupt

Be in serious business difficulties and considered to be impossible to rebuild,though not yet legally and formally bankrupt

In danger of bankruptcy Facing business difficulties and failing to make adequate progress on its business improvement plan,so that there is a possibility of falling into bankruptcy in the future
Need attention
Special attention

Having problems with lending conditions, fulfillment or its financial conditions, etc.
Within the borrowers classified as "Needs Attention", being overdue longer than 3 months or
having problems with lending conditions (i.e., waivers, reductions, or deferrals of interest)

NormalHaving strong results and no particular problems with its financial condition

15

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Higo Bank [Non-consolidated](100 mil. yen)Self-assessment results (by borrower classification)
Scope: Credit-related claims including loans*After write-downs and allowancesClassificatio

Credit balance

Classification

vs. end of Mar. 2020

Category I Category II Category IIICategory IV

De facto
bankrupt

20

6(100 mil. yen)
Risk-management loans

Scope: Substandard loans include loans only

Scope: Loans

The remainder is credit-related claims including loans
Classification

Bankrupt
26(100 mil. yen)
Loans based on the Financial Reconstruction Act－－

Credit balance

Bankrupt or
De facto
Bankrupt

(20)

91

64

In danger ofbankruptcy

42

22

－

Amountcovered bycollateral/guarantee

34

Coverageamount(%)

Coverage
ratio

56

100.0

Past due loans

26

428

－

Doubtful loans

248

86

30

365

217

117

91.5

47
Special attention

189

Special attention loans

40

Need attention

163

45

24

42.7

620
Normal loans

296

198

79.8

148
Subtotal

50“Needs attention” excluding “special attention”

600

1,487

1.60%

919

(including local governments)

35,97435,974433
38,70736,926

1,750

30

Total

38,074－

1,422

38,69416

Loans in arrears bymore than 3 months
Restructured loans

Total

Ratio of loans based on the Financial Reconstruction Act to total cred

2,087

Total

Balance

Loans toborrowers
declaredbankrupt(8)

365

NormalClassification

－
163

619

Ratio of risk-management loan

1.61%

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Kagoshima Bank [Non-consolidated](100 mil. yen)Self-assessment results (by borrower classification)
Scope: Credit-related claims including loans*After write-downs and allowancesClassificatio

Credit balance

Classification

vs. end of Mar. 2020

Category I Category II Category IIICategory IV

De facto
bankrupt

13

10(100 mil. yen)
Risk-management loans

Scope: Substandard loans include loans only

Scope: Loans

The remainder is credit-related claims including loans
Classification

Bankrupt
24(100 mil. yen)
Loans based on the Financial Reconstruction Act－－

Credit balance

Bankrupt or
De facto
Bankrupt

(4)

72

48

33

14

－

Amountcovered bycollateral/guarantee

29

Coverageamount(%)

Coverage
ratio

42

100.0

291

67

0

358

96

262

Special attention loans

29

Need attention

471

178

143

68.2

902
Normal loans

304

448

83.4

498
Subtotal

96“Needs attention” excluding “special attention”

498

1,930

2.34%

(including local governments)

Total

35,142

2,083
38,531

36,009

2,521

0

Total

37,628－2,590

38,531

17

Loans in arrears bymore than 3 months
Restructured loans

Total

Ratio of loans based on the Financial Reconstruction Act to total cred374

35,142

384

99.9

53
Special attention

NormalPast dueloans

24

Doubtful loans

358

2,429

Balance

Loans toborrowers
declaredbankrupt－(12)
In danger ofbankruptcy

527

Classification

0
470

880

Ratio of risk-management loans to

2.30%

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

6. Loan by industry
Loan by industry[Two banks combined](mil. yen)

End of Mar.
2021
Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery
Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Othervs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

7,649,337

62,980394,720

7,586,357

7,254,617

442,00989,311
18,237
6,263
192,393
201,952
53,409
175,854620,581274,975
1,023,151
826,181
1,387,341
2,337,675(2,801)
3,037
(516)
(219)
9,987
1,532
260
(6,772)(12,263)
15,54419,010
5,403(27,230)
58,008(4,956)
3,181(1,846)(385)
17,586
(266)
881
(477)
(5,847)
9,690
19,16547,910211,318
98,764444,811
86,27318,753
6,483
182,406
200,419
53,149182,627
632,844
259,430
1,004,140
820,778
1,414,572
2,279,666

446,966
86,13020,083
6,649
174,806
202,219
52,527
176,331626,428265,285
1,003,985
778,270
1,176,023
2,238,910

Higo Bank (Non-consolidated)(mil. yen)

End of Mar.
2021
Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery
Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Othervs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

3,834,901

10,953

138,457

3,823,947

3,696,443

246,901
29,872
4,583
2,861
103,180
92,352
38,07894,702
339,560
201,162
655,624
349,179
678,204
998,638

(969)
(228)
(1,056)
(255)
5,502
3,157
1,040
(1,855)(6,903)
16,414
18,546
4,802(46,865)
19,625(1,219)
2,839
(989)
(322)
11,962
2,574
907
7,875
(13,087)
12,56418,90433,53625,83937,071

247,871
30,1005,639
3,117
97,67889,19437,03896,558346,463
184,747
637,077
344,377
725,070979,012248,12127,033
5,572
3,184
91,217
89,77837,17086,826352,647
188,598
636,719
315,642652,365
961,566

vs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

Kagoshima Bank (Non-consolidated)(mil. yen)

End of Mar.
2021
Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery
Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Other

3,814,436

52,026

256,262

3,762,410

3,558,174

195,108
59,43913,654
3,402
89,213
109,600
15,331
81,152
281,02173,813
367,527
477,002709,137
1,339,037(1,832)
3,266
540
36
4,485
(1,625)(780)(4,917)(5,360)
(870)
464
601
19,63538,383(3,737)
342
(857)
(63)
5,624
(2,841)(26)(8,353)7,240(2,874)261
14,374
185,479
61,693

196,940
56,173
13,114
3,366
84,728111,225
16,111
86,069286,381
74,683367,063
476,401
689,5021,300,654

198,845
59,097
14,511
3,465
83,589112,441
15,35789,505
273,781
76,687367,266
462,628
523,658
1,277,344

18

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Risk-management loans by industry
Note: Partial direct write-off method is not used.

[Two banks combined]

Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery
Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Other

Higo Bank (Non-consolidated)

Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery
Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Other

Kagoshima Bank (Non-consolidated)

Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery

Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Other(mil. yen)

End of Mar.
2021

vs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

149,976

6,619

17,776

143,357

132,200

13,776
2,356
2,117
59
7,156
18
396
6,118
40,0492,144
11,19254,353－
10,238778
833(1,032)
0
(376)
0
(28)
1,099
1,161
(78)
1,301
2,882
－
79

1,344
1,110
(1,052)
19
(363)
(3)
(2)
1,700
2,420
(289)
1,503
10,951－
438

12,998
1,522
3,150
59
7,532
18
424
5,018
38,8882,223
9,890
51,470－
10,15912,432
1,245
3,169
40
7,520
21
399
4,417
37,6292,433
9,688
43,401－
9,800

vs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

(mil. yen)

End of Mar.
2021
61,914

(677)

6,231

62,591

55,683

8,361
887
742
44
2,879
13
366
2,814
11,624
2,144
5,609
20,386
－
6,040

(56)
(101)
(1,217)
2
(224)
(0)
(28)
(30)
693
(78)
477
(0)
－
(111)

(116)
179
(957)
22
251
(1)
(6)
1,706
1,427
(288)
278
3,734
－
(0)

8,418
989
1,959
41
3,104
13
394
2,844
10,931
2,222
5,131
20,387
－
6,151

8,477
708
1,699
21
2,628
14
372
1,108
10,1962,432
5,331
16,652－
6,040

vs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

(mil. yen)

End of Mar.
2021
88,061

7,296

11,54580,76576,516

5,414
1,468
1,375
15
4,276
5
29
3,303
28,425－
5,582
33,966
－
4,198

834
935
185
(1)
(152)
－
0
1,129
467
(0)
823
2,883
－
191

1,460
930
(94)
(3)
(615)
(1)
3
(5)
992
(1)
1,225
7,217
－
438

4,580
532
1,190
17
4,428
5
29
2,173
27,9570
4,758
31,082
－
4,007

3,954
537
1,470
19
4,891
6
26
3,309
27,432
1
4,357
26,749－3,759

19

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Loans based on the Financial Reconstruction Act by Industry
Note: Partial direct write-off method is not used.

[Two banks combined]

Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery

Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Other(mil. yen)

End of Mar.
2021

vs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

152,297

6,655

17,774

145,641

134,522

13,877
2,390
2,117
59
7,136
18
394
6,118
40,5592,199
11,293
55,952－
10,180825
840(1,033)
0
(397)
0
(30)
1,099
1,144
(84)
1,399
2,876
－
15

1,384
1,119
(1,053)
19
(385)
(3)
(4)
1,692
2,398
(290)
1,603
10,919－375

13,052
1,550
3,150
59
7,534
18
424
5,018
39,4142,283
9,893
53,076－
10,164

12,493
1,270
3,170
40
7,522
21
399
4,426
38,161
2,489
9,689
45,032－
9,805

Higo Bank (Non-consolidated)

Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery

Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Other(mil. yen)

End of Mar.
2021

vs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

62,040

(685)

6,204

62,72555,835

8,373
891
742
44
2,860
13
364
2,814
11,6292,199
5,709
20,416
－
5,980

(78)
(101)
(1,217)
2
(244)
(0)
(30)
(30)
684
(83)
576
13
－
(174)

(143)
180
(957)
22
231
(1)
(8)
1,706
1,405
(289)
378
3,740
－
(61)

8,451
992
1,959
41
3,105
13
394
2,844
10,9452,282
5,133
20,403
－
6,155

8,517
710
1,699
21
2,629
14
372
1,108
10,223
2,488
5,331
16,676－
6,042

Kagoshima Bank (Non-consolidated)(mil. yen)

End of Mar.
2021
Domestic branches(excluding special international financial transactions account)

Manufacturing
Agriculture and forestry
Fishery

Mining and quarrying of stone and gravel

Construction

Electricity, Gas, Heat supply and Water

Information and communications
Transport and postal activities
Wholesale and Retail trade
Finance and Insurance

Real estate and Goods rental and leasing

Services
National and local government
Othervs. end of Sep. 2020 vs. end of Mar. 2020

End of Sep.
2020

End of Mar.
2020

90,257

7,341

11,56982,916

78,687

5,504
1,499
1,375
15
4,276
5
29
3,303
28,929－5,583
35,535
－
4,199

903
941
184
(1)
(152)
－
0
1,129
460
(0)
823
2,863
－
190

1,527
938
(96)
(3)
(616)
(1)
3
(14)
992
(1)
1,225
7,178
－
436

4,600
557
1,190
17
4,428
5
29
2,173
28,4690
4,760
32,672
－
4,009

3,976
560
1,471
19
4,892
6
26
3,317
27,9371
4,358
28,356－3,762

20

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Personal loan balance[Two banks combined](mil. yen)

End ofMar. 2021
Personal loan balance
Housing loans balance
Balance of other loans

vs. end of Sep. 2020 vs. end of Mar. 2020

2,412,087
2,301,577
110,509

57,109△57,427318

97,718△100,1432,425

End ofSep. 2020
2,354,977
2,244,149
110,827

Higo Bank (Non-consolidated)
vs. end of Sep. 2020 vs. end of Mar. 2020

984,172
943,586
40,585

20,529△21,514985

38,530△41,7843,254

End ofSep. 2020

End ofMar. 2020

963,642922,071
41,570945,642
901,801
43,840Kagoshima Bank (Non-consolidated)(mil. yen)

End ofMar. 2021
Personal loan balance
Housing loans balance
Balance of other loans

vs. end of Sep. 2020 vs. end of Mar. 2020

1,427,915
1,357,991
69,92436,58035,913667

59,18858,359829

End ofSep. 2020

End ofMar. 2020

1,391,335
1,322,078
69,257

1,368,727
1,299,632
69,095Loans to SMEs, etc.
[Two banks combined](mil. yen)

End ofMar. 2021
Balance of loans to SMEs, etc. (A)Total balance of loans (B)Ratio of loans to SMEs, etc. (A) / (B)vs. end of Sep. 2020 vs. end of Mar. 2020

5,086,338
7,649,337
66.49%

105,552
62,9800.84%

222,401△
394,720
0.55%

End ofSep. 2020

End ofMar. 2020

4,980,786
7,586,357
65.65%

4,863,936
7,254,617
67.04%

Higo Bank (Non-consolidated)(mil. yen)

End ofMar. 2021
Balance of loans to SMEs, etc. (A)Total balance of loans (B)Ratio of loans to SMEs, etc. (A) / (B)vs. end of Sep. 2020 vs. end of Mar. 2020

2,392,288
3,834,901
62.38%

63,037
10,953
1.47%

138,115
138,457
1.40%

End ofSep. 2020

End ofMar. 2020

2,329,251
3,823,947
60.91%

2,254,172
3,696,443
60.98%

Kagoshima Bank (Non-consolidated)(mil. yen)

End ofMar. 2021
Balance of loans to SMEs, etc. (A)Total balance of loans (B)Ratio of loans to SMEs, etc. (A) / (B)2,314,369
2,201,433
112,935(mil. yen)

End ofMar. 2021
Personal loan balance
Housing loans balance
Balance of other loans

End ofMar. 2020

vs. end of Sep. 2020 vs. end of Mar. 2020

2,694,050
3,814,436
70.62%

42,51552,0260.15%

2184,286△
256,262
2.72%

End ofSep. 2020

End ofMar. 2020

2,651,535
3,762,410
70.47%

2,609,764
3,558,174
73.34%

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

7. Balance of deposits and loans[Two banks combined](mil. yen)

End ofMar. 2021
Total deposits (end-of-term balance)
Deposits (end-of-term balance)
Negotiable certificates of deposit(end-of-term balance)

Loans (end-of-term balance)

9,672,485
9,521,908
150,576
7,649,337

vs. end of Sep. 2020

vs. end of Mar. 2020

318,115514,360(196,244)
62,980893,223
953,976(60,752)
394,720

End ofSep. 2020

End ofMar. 2020

9,354,369
9,007,548
346,8217,586,357

8,779,262
8,567,932
211,329
7,254,617(mil. yen)

End ofMar. 2021
Total deposits (end-of-term balance)
Deposits (end-of-term balance)
Negotiable certificates of deposit(end-of-term balance)

Loans (end-of-term balance)

9,372,430
9,054,473
317,957
7,539,827

vs. end of Sep. 2020

vs. end of Mar. 2020

101,378
111,868(10,490)
72,728625,266
683,020(57,754)425,948

End ofSep. 2020

End ofMar. 2020

9,271,052
8,942,604
328,447
7,467,098

8,747,164
8,371,453
375,711
7,113,879

Higo Bank (Non-consolidated)(mil. yen)

End ofMar. 2021
Total deposits (end-of-term balance)
Deposits (end-of-term balance)
Negotiable certificates of deposit(end-of-term balance)

Loans (end-of-term balance)

5,126,772
5,050,587
76,185
3,834,901

vs. end of Sep. 2020

vs. end of Mar. 2020

167,955
250,658(82,702)
10,953449,272
470,514(21,241)
138,457

End ofSep. 2020

End ofMar. 2020

4,958,817
4,799,929
158,8883,823,947

4,677,500
4,580,073
97,426
3,696,443(mil. yen)

End ofMar. 2021
Total deposits (end-of-term balance)
Deposits (end-of-term balance)
Negotiable certificates of deposit(end-of-term balance)

Loans (end-of-term balance)

4,957,360
4,824,086
133,273
3,794,587

vs. end of Sep. 2020

vs. end of Mar. 2020

24,431
38,692(14,260)
17,855284,232
340,910(56,677)
203,793

End ofSep. 2020

End ofMar. 2020

4,932,929
4,785,394
147,534
3,776,731

4,673,127
4,483,176
189,951
3,590,794

Kagoshima Bank (Non-consolidated)
End ofMar. 2021
Total deposits (end-of-term balance)
Deposits (end-of-term balance)
Negotiable certificates of deposit(end-of-term balance)

Loans (end-of-term balance)

4,545,712
4,471,321
74,391
3,814,436(mil. yen)vs. end of Sep. 2020

vs. end of Mar. 2020

150,160
263,702(113,542)
52,026443,950
483,462(39,511)
256,262

End ofSep. 2020

End ofMar. 2020

4,395,552
4,207,619
187,933
3,762,410

4,101,762
3,987,859
113,9023,558,174(mil. yen)

End ofMar. 2021
Total deposits (end-of-term balance)
Deposits (end-of-term balance)
Negotiable certificates of deposit(end-of-term balance)

Loans (end-of-term balance)

4,415,070
4,230,386
184,683
3,745,240

vs. end of Sep. 2020

vs. end of Mar. 2020

76,94673,1763,770
54,873341,033
342,109(1,076)
222,155

22

End ofSep. 2020

End ofMar. 2020

4,338,123
4,157,210
180,9133,690,367

4,074,036
3,888,277
185,759
3,523,085

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

8. Assets under management

Group total:(mil. yen)

End ofMar. 2021
Assets under management
Individuals
Public bonds
Investment trusts
Personal annuities, etc.
Kyushu FG Securities

vs. end of Sep. 2020

vs. end of Mar. 2020

42,55919,343
2,997(549)
16,89523,317

94,98946,537
10,015
6,470
30,05149,173

1,319,391
1,164,216
55,983
102,480
1,005,752
143,455

End ofSep. 2020

End ofMar. 2020

1,276,831
1,144,873
52,985103,030
988,857
120,137

1,224,401
1,117,679
45,96896,009975,701
94,281

Note: Personal annuities, etc. of group total, Higo Bank and Kagoshima Bank are the cumulative total sales ofannuities, whole life insurance, etc. policies.

Higo Bank (Non-consolidated)(mil. yen)

End ofMar. 2021
Assets under management
Individuals
Public bonds
Investment trusts
Personal annuities, etc.

vs. end of Sep. 2020

vs. end of Mar. 2020

13,642
13,697
4,961
(551)
9,287

32,161
32,764
14,2183,501
15,045596,616
587,070
29,22659,343
498,499

End ofSep. 2020

End ofMar. 2020

582,973573,372
24,26559,895489,211564,454554,306
15,00855,842
483,454

Kagoshima Bank (Non-consolidated)
End ofMar. 2021
Assets under management
Individuals
Public bonds
Investment trusts
Personal annuities, etc.

(mil. yen)vs. end of Sep. 2020

vs. end of Mar. 2020

5,599
5,646
(1,963)
1
7,607

13,654
13,773(4,202)
2,969
15,006579,319577,146
26,756
43,136507,25323

End ofSep. 2020

End ofMar. 2020

573,720
571,500
28,71943,134
499,645565,665
563,373
30,95940,167492,246

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

IV. Other
1. Securities[Consolidated KFG]

(mil. yen)

End of Mar. 2021
Amount onbalance sheet
Securities held-to-maturity
Available-for-sale securities

Stocks
Bonds
Other
Total

22,352
2,151,425
146,581
1,184,121
820,7222,173,778

vs. end of Sep. 2020 vs. end of Mar. 2020

2,527
65,603
17,67014,00633,926
68,1303,592(26,411)
20,789(8,564)(38,636)(22,819)

Net unrealized
gains/losses

72
92,48049,467
3,775
39,23792,553vs. end of Sep. 2020 vs. end of Mar. 2020(28)
(32,209)20,284(6,396)(46,097)(32,238)

End of Sep. 2020

End of Mar. 2020

Amount on
Net unrealizedbalance sheet gains/losses

Amount on
Net unrealizedbalance sheet gains/losses(41)
19,825(13,876) 2,085,822
35,947
128,910(12,127) 1,170,114(37,696) 786,796(13,917) 2,105,647

100
124,690
29,183
10,17285,335
124,791

18,7602,177,836
125,792
1,192,685
859,358
2,196,597

Higo Bank (Non-consolidated)(mil. yen)

End of Mar. 2021
Amount onbalance sheet
Securities held-to-maturity
Available-for-sale securities

Stocks
Bonds
Other
Total

22,352
1,313,568
62,974805,876444,717
1,335,921

vs. end of Sep. 2020 vs. end of Mar. 2020

2,527
27,7398,750
16,472
2,516
30,267

3,592(16,672)
4,612
5,231
(26,516)(13,080)

Net unrealized
gains/losses

72
62,656
26,387
3,312
32,95762,729vs. end of Sep. 2020 vs. end of Mar. 2020(28)
(24,774)
9,087(5,404)(28,457)(24,802)

End of Sep. 2020

End of Mar. 2020

Amount on
Net unrealizedbalance sheet gains/losses

Amount on
Net unrealizedbalance sheet gains/losses(41)
19,825(17,841) 1,285,828
15,20354,223(11,112) 789,403(21,932) 442,201(17,882) 1,305,653

100
87,43017,2998,716
61,41487,531

18,7601,330,240
58,361
800,645471,234
1,349,001

Kagoshima Bank (Non-consolidated)

Securities held-to-maturity
Available-for-sale securities

Stocks
Bonds
Other
Total

－
835,520
81,876378,239
375,404
835,520

vs. end of Sep. 2020 vs. end of Mar. 2020－
37,8108,822(2,466)
31,45437,810113
80,498
11,184
14,42454,88980,611(mil. yen)

End of Mar. 2021
Amount onbalance sheet

113
106,357
13,51915,90376,933
106,470－(10,166)
15,868(13,795)(12,239)(10,166)

Net unrealized
gains/losses－
49,99740,265
1,697
8,034
49,997vs. end of Sep. 2020 vs. end of Mar. 2020－
(8,222)
10,899(1,378)(17,743)(8,222)

24

－
1,082
18,924(1,908)(15,933)
1,082

End of Sep. 2020

End of Mar. 2020

Amount on
Net unrealizedbalance sheet gains/losses

Amount on
Net unrealizedbalance sheet gains/losses－
797,709
73,053
380,706
343,949
797,709－58,22029,366
3,075
25,77858,220－845,686
66,007392,035
387,643845,686－
48,915
21,3403,605
23,96848,915

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

2. Number of officers/employees and offices[Two banks combined]

Number of officers (including corporate auditors)

Number of employees
Main branch and domestic branches

Agencies
Overseas representative offices(number of people/branches)

End ofMar. 2021
34
4,303

vs. end of Sep. 2020

vs. end of Mar. 2020

－
(141)

－
5

End ofSep. 2020
34
4,444

－
－

－
－
－

256
18
3

256
18
3

－

End ofMar. 2020
34
4,298
256
18
3

Note: Numbers of employees for aggregate of two banks, Higo Bank and Kagoshima Bank include staff on loan.

Higo Bank (Non-consolidated)

Number of officers (including corporate auditors)

Number of employees
Main branch and domestic branches

Agencies
Overseas representative offices(number of people/branches)

End ofMar. 2021
16
2,173

vs. end of Sep. 2020

vs. end of Mar. 2020

－
(60)

－
10

End ofSep. 2020
16
2,233

－
－
－

－

123

123

－
－

－
1

－
1

123
－
1

End ofMar. 2020
16
2,163

Note: Main branch and domestic branches at the end of March 2021 include (5) subbranches.

Kagoshima Bank (Non-consolidated)
End ofMar. 2021
Number of officers (including corporate auditors)
18
Number of employees
2,130
Main branch and domestic branches

Agencies
Overseas representative offices(number of people/branches)－(5)

End ofSep. 2020
18
2,211

End ofMar. 2020
18
2,135

－
－
－

133
18
2

133
18
2

vs. end of Sep. 2020

vs. end of Mar. 2020

－
(81)
－
－
－

133
18
2

Note: Main branch and domestic branches at the end of March 2021 include (18) subbranches.

25

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

V. Reference material (financial statements of subsidiary banks)
1. Higo Bank (Non-consolidated): Financial statements(1) Balance sheet
Previous fiscal year
(March 31, 2020)
Assets:Cash and due from banks
Cash
Due from banks
Call loans
Monetary claims purchased
Trading assets
Trading account securities
Trading-related financial derivatives
Money held in trust
Securities
Government bonds
Municipal bonds
Corporate bonds
StocksOther securities
Loans
Discounted bills
Loan on bills
Loan on deeds
Overdraft
Foreign exchanges
Due from foreign banks (our accounts)
Foreign bills bought
Foreign bills receivable
Other assets
Domestic exchange settlement account, debit
Prepaid expenses
Accrued income
Financial derivatives
Collateral pledged for financial instruments, etc.
Other assets
Tangible fixed assets
Buildings
Land
Lease assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets
Software
Other intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

26

688,379
43,846
644,533
388
726
45
31
13
4,838
1,367,552
359,832
191,391
268,182
66,285
481,861
3,696,443
10,145
158,561
3,157,894
369,843
5,791
5,289
466
36
201,444
686
260
4,879
2,149
68,751
124,716
49,163
17,122
27,560
943
213
3,324
6,897
6,795
101
3,726
5,634
9,979
(22,018)
6,018,993(mil. yen)
Fiscal year underreview(March 31, 2021)
1,176,631
43,616
1,133,014
21,145
652
19
1
18
4,738
1,355,695
352,768
219,114
256,347
70,908456,557
3,834,901
8,420
133,625
3,339,924
352,929
7,198
6,784
364
49
169,906
555
364
4,892
11,536
17,653
134,904
48,771
17,362
27,388
820
50
3,149
7,107
7,005
101
4,259
－
10,671(23,927)
6,617,770

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Previous fiscal year
(March 31, 2020)
Liabilities:
Deposits
Current deposits
Ordinary deposits
Saving deposits
Deposits at noticeTime deposits
Installment savings
Other deposits
Negotiable certificates of deposit
Call money
Payables under repurchase agreements
Payables under securities lending transactions
Trading liabilities
Trading-related financial derivatives
Borrowings from other banks
Borrowings
Foreign exchanges
Foreign bills sold
Foreign bills payable
Borrowed money from trust account
Other liabilities
Domestic exchange settlement account, credit
Accrued corporation tax, etc.
Accrued expenses
Deferred income
Reserve for interest on installment savings
Financial derivatives
Collateral received for financial instruments, etc.
Lease obligations
Asset retirement obligations
Other liabilities
Provision for reimbursement of deposits
Provision for contingent losses
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities

4,580,073
124,352
2,788,199
46,447
19,675
1,535,095
14,76451,53897,4269,250
129,434
499,93811
11
282,963
282,963
18
4
14
1,461
104,273
5,509
1,948
2,256
1,220
3
70,836
370
1,018
184
20,925
1,038
253
－
4,395
9,979
5,720,519

27(mil. yen)
Fiscal year underreview(March 31, 2021)
5,050,587
139,415
3,171,180
48,952
22,048
1,587,341
13,366
68,282
76,185－126,044482,52816
16
485,412
485,412
73
54
19
2,347
37,121
6,301
1,659
2,104
1,300
2
21,075
－
891
187
3,599
864
241
7,121
4,338
10,671
6,283,556

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Previous fiscal year
(March 31, 2020)
Net assets:
Share capital
Capital surplus
Legal capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of real estate
General reserves
Retained earnings brought forward
Total shareholders’ equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

28

18,1288,133
8,133
258,252
18,128240,123363
222,387
17,373
284,51456,464(48,285)
5,779
13,959298,474
6,018,993(mil. yen)
Fiscal year underreview(March 31, 2021)
18,1288,133
8,133
263,50918,128245,380363
230,387
14,630289,772
44,127(5,346)
5,660
44,441
334,213
6,617,770

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信(2) Income statement
Previous fiscal year
(from April 1, 2019
to March 31, 2020)
74,63352,442
34,60917,549(22)0306

Ordinary income
Interest income
Interest on loans
Interest and dividends on securities
Interest on call loans
Interest on deposits
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Trading income
Gains on trading account securities transactions
Income from trading-related financial derivatives transactions
Other operating income
Gains on foreign exchange transactions
Gains on sales of government and other bonds
Other operating income
Other ordinary income
Gains on loans written-off
Gain on sales of stocks and other securities
Gain on money held in trust
Gains on reversal of reserve for contingent losses
Other ordinary income
Ordinary expenses
Interest expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money
Interest on payables under repurchase agreements
Interest on payables under securities lending transactions
Interest on borrowing
Interest paid on interest rate swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Trading expenses
Expenses on trading-related financial derivatives transactions
Other operating expenses
Losses on sale of government and other bonds
Expenses on trading-related financial derivatives transactions
General and administrative expenses

29

25
10,794
3,812
6,981
28
25
2
7,556
206
7,350
－
3,786
17
3,043
51
6
667
56,074
8,507
350
14
(6)
1,730
3,584
412
2,421
1
4,488
1,255
3,232
－
－
5,164
4,149
1,014
35,697(mil. yen)
Fiscal year under(from April 1, 2020
to March 31, 2021)
73,78951,30434,43016,590(9)0293
2310,654
3,679
6,974
32
32
－
5,907
1,021
4,877
8
5,867
6
5,085
－
12
763
61,535
6,708
294
9
300
(28)
823
191
5,107
11
4,560
1,177
3,382
0
0
4,435
3,920
515
36,774

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Other expenses
Provision of allowance for doubtful accounts
Written-off of loans
Losses on sale of stocks and other securities
Losses on devaluation of equity securities
Losses on money held in trust
Other ordinary expenses
Ordinary profit
Extraordinary income
Gains on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Net income before income taxes
Corporation, inhabitants and enterprise taxes
Income taxes-deferred
Total of corporate income taxes
Net Income

Previous fiscal year
(from April 1, 2019
to March 31, 2020)
2,215
158
0
925
223
0
908
18,559
394
394
327
327
－
18,626
4,627
1,138
5,765
12,86030(mil. yen)
Fiscal year under(from April 1, 2020
to March 31, 2021)
9,056
4,890
0
3,338
0
92
734
12,253
13
13
205
2
203
12,061
3,935
(551)
3,384
8,677

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

2. Kagoshima Bank (Non-consolidated): Financial statements(1) Balance sheet
Previous fiscal year
(March 31, 2020)
Assets:Cash and due from banks
Cash
Due from banks
Monetary claims purchased
Trading account securities
Trading government bonds
Trading local government bonds
Money held in trust
Securities
Government bonds
Municipal bonds
Corporate bonds
StocksOther securities
Loans
Discounted bills
Loan on bills
Loan on deeds
Overdraft
Foreign exchanges
Due from foreign banks (our accounts)
Foreign bills bought
Foreign bills receivable
Other assets
Prepaid expenses
Accrued income
Financial derivatives
Collateral pledged for financial instruments, etc.
Other assets
Tangible fixed assets
Buildings
Land
Lease assets
Construction in progress
Other tangible fixed assets
Intangible fixed assets
SoftwareLease assets
Other intangible fixed assets
Prepaid pension cost
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets

31(mil. yen)
Fiscal year underreview(March 31, 2021)

484,465
55,446
429,018

782,072
50,608731,463

9,177
831

10,223－－－
7,863
843,605
108,63147,925

3
828
11,777
853,678
98,56056,148237,325

1
144
8,388

221,682
84,536
380,828
3,814,436
5,875
117,078
3,305,985
385,496
8,062
8,026
0
34
26,828
125
3,172
5,885
597
17,04967,53024,59335,818
1,588
1
5,527
3,123
2,978
1
144
7,483

3,819
25,434(42,622)
5,035,884－
26,935(48,818)
5,549,347

68,687392,9553,558,174
7,478
123,937
3,016,355
410,402
7,481
7,454
0
26
43,22321
3,595
786
20,707
18,112
68,58913,92836,204
1,848
11,687
4,919
3,466
3,321

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Previous fiscal year
(March 31, 2020)
Liabilities:
Deposits
Current deposits
Ordinary deposits
Saving deposits
Deposits at noticeTime deposits
Other deposits
Negotiable certificates of deposit
Call money
Payables under repurchase agreements
Payables under securities lending transactions
Borrowed money
Borrowings
Foreign exchanges
Foreign bills sold
Foreign bills payable
Borrowed money from trust account
Other liabilities
Accrued corporation tax, etc.
Accrued expenses
Deferred income
Financial derivatives
Collateral received for financial instruments, etc.
Lease obligations
Asset retirement obligations
Other liabilities
Provision for retirement benefits
Provision for reimbursement of deposits
Provision for contingent losses
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities

3,987,859
73,2802,372,682
136,319
2,940
1,352,171
50,464113,9024,471,321
84,9302,802,339
143,576
2,001
1,379,115
59,35874,391

3,482
103,320
147,378
294,717294,71763
21
42－
26,482
223,825
358,118
358,118
120
17
102
2,441
21,833
2,516
1,490
1,411
2,187
3,352
1,697
175
9,002
1,658
628
231

1,125
36,261
1,380
2,106
1,428
20,867
－
1,960
207
8,310
1,705
1,063
220
－
6,817
25,434
4,723,353

32(mil. yen)
Fiscal year underreview(March 31, 2021)

1,313
6,763
26,935
5,216,064

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

Previous fiscal year
(March 31, 2020)
Net assets:
Share capital
Capital surplus
Legal capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entry of non-current assets
Reserve for special account of advanced depreciation of non-current assets

Contingent reserves
Retained earnings brought forward
Total shareholders’ equity
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

33(mil. yen)
Fiscal year underreview(March 31, 2021)

18,130
11,204
11,204247,411
18,130229,280577

18,130
11,204
11,204
251,443
18,130233,312590

11213,000
15,691
276,746
34,162(13,172)
14,79335,784
312,530
5,035,884－
221,000
11,721
280,778
34,972
2,862
14,66952,504333,2835,549,347

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信(2) Income statement
Previous fiscal year
(from April 1, 2019
to March 31, 2020)
64,40848,23836,776
11,380(9)090Ordinary income
Interest income
Interest on loans
Interest and dividends on securities
Interest on call loans
Interest on deposits
Other interest income
Trust fees
Fees and commissions
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other operating income
Gains on foreign exchange transactions
Gains on trading account securities transactions
Gains on sales of government and other bonds
Other operating income
Other ordinary income
Gains on loans written-off
Gain on sales of stocks and other securities
Gain on money held in trust
Other ordinary income
Ordinary expenses
Interest expenses
Interest on deposits
Interest on negotiable certificates of deposit
Interest on call money
Interest on payables under repurchase agreements
Interest on payables under securities lending transactions
Interest on borrowing
Interest paid on interest rate swaps
Other interest expenses
Fees and commissions payments
Fees and commissions on domestic and foreign exchanges
Other fees and commissions
Other operating expenses
Loss on trading account securities transactions
Losses on sale of government and other bonds
Expenses on trading-related financial derivatives transactions
Other operating expenses
General and administrative expenses
Other ordinary expenses
Provision of allowance for doubtful accounts
Written-off of loans
Losses on sale of stocks and other securities
Losses on devaluation of equity securities
Losses on money held in trust
Other ordinary expenses
Ordinary profit

34

15
10,129
3,496
6,632
3,351
228
9
2,657
457
2,673
0
1,509
79
1,085
48,192
3,381
399
25
57
1,328
867
152
432
118
4,994
589
4,405
502
－
196
103
202
35,350
3,963
547
78
639
1,307
255
1,134
16,216(mil. yen)
Fiscal year under(from April 1, 2020
to March 31, 2021)
69,97248,08436,705
11,229
(6)
0
156
28
9,884
3,507
6,377
6,110
316
－
5,324
469
5,864
0
4,667
265
930
59,557
2,480
283
20
2
113
341
240
1,371
106
5,083
585
4,497
3,643
9
3,388
54
192
37,254
11,095
8,921
8
1,042
202
160
759
10,414

㈱九州フィナンシャルグループ（7180） 2021年3月期決算短信

3
3
691
142

(mil. yen)
Fiscal year under(from April 1, 2020
to March 31, 2021)
2
2
305
69

549
15,527
4,457
(165)
4,291
11,236236
10,111
4,843(2,198)
2,644
7,466

Previous fiscal year
(from April 1, 2019
to March 31, 2020)
Extraordinary income
Gains on disposal of non-current assets
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Net income before income taxes
Corporation, inhabitants and enterprise taxes
Income taxes-deferred
Total of corporate income taxes
Profit35