Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2023
(Based on Japanese GAAP)
November 7, 2023
Company name:
THE TOWA BANK, LTD.
Stock exchange listing: Tokyo
Stock code:

8558
URL https://www.towabank.co.jp
Representative Director,
Representative:
Hiroshi Ebara
President & Chief Executive Officer
General Manager of Finance and Accounting
Inquiries:
Yoichi Noguchi
Department
Scheduled date to file Quarterly Securities Report:
November 14, 2023
Scheduled date to commence dividend payments:
Trading accounts:–
No

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
No

TEL

027-234-1111(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toOrdinary income
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
Six months ended September 30, 2023
17,3013.0
2,001 (21.6)
1,531 (48.5)
Six months ended September 30, 2022
16,794 (16.5)
2,554 (27.8)
2,980
37.0
Note: Comprehensive income

Six months ended September 30, 2023
Six months ended September 30, 2022¥(5,498) million [–%]¥(5,388) million [–%]

Earnings per share

Diluted earnings per share

Yen
41.43
80.72

Six months ended September 30, 2023
Six months ended September 30, 2022

Yen
23.79
45.59

(2) Consolidated financial position
Total assets

As of September 30, 2023
As of March 31, 2023
Reference: Equity

As of September 30, 2023

Net assets

Millions of yen
2,414,563
2,390,395

Millions of yen
111,093
117,688

Equity ratio
%
4.5
4.8

Consolidated capital
adequacy ratio(domestic rules)
%
10.25
10.43

¥110,337 million

As of March 31, 2023
¥116,907 million
Note: “Equity ratio” is calculated at (total net assets at the end of the period minus share acquisition rights at the end of the period minus noncontrolling interests at the end of the period) divided by total assets at the end of the period.
“Consolidated capital adequacy ratio (domestic rules)” is calculated based on the “Criteria on whether the adequacy of equity capital of the bankis appropriate in light of the assets owned by the bank, etc. in accordance with the provisions of Article 14-2 of the Banking Act (Financial
Services Agency Notification No. 19 of 2006).”

1

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
0.00
0.00

Yen
–

Yen
25.00

Yen
25.00

–

25.00

25.00

Year ended March 31, 2023
Year ending March 31, 2024
Year ending March 31, 2024 (Forecast)

Total

Note: Revision of cash dividend forecast most recently announced: No
Note: “Cash dividends” above is the dividend information pertaining to common shares. For information on dividends for class shares (unlisted),
which have different shareholder rights than for common shares issued by the bank, please see “Dividends by share class.”
3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen%
Yen
Full year
2,500 (37.2)
2,000 (51.1)
48.54
Note: Revision of consolidated financial results forecast most recently announced: No
4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2023

37,180,273 shares As of March 31, 2023

37,180,273 shares

Number of treasury shares at the end of the period
As of September 30, 2023

174,661 shares As of March 31, 2023

254,381 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

36,965,188 shares Six months ended September 30, 2022

2

36,917,442 shares

Overview of non-consolidated financial results
1. Non-consolidated financial results for the six months ended September 30, 2023 (interim period) (from April 1, 2023 to September 30, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Ordinary income
Millions of yen
15,42914,888Six months ended September 30, 2023
Six months ended September 30, 2022

Ordinary profit% Millions of yen
3.6
1,989
(18.6)
2,524

Profit% Millions of yen(21.1)
1,523(26.7)
2,959%(48.5)
40.4

Basic earnings per share
Yen
41.20
80.16

Six months ended September 30, 2023
Six months ended September 30, 2022
(2) Non-consolidated financial position
Total assets

Millions of yen
2,405,549
2,381,584

As of September 30, 2023
As of March 31, 2023
Reference: Equity

Net assets

As of September 30, 2023

Millions of yen
109,158
115,670

Equity ratio

Non-consolidated capital
adequacy ratio(domestic rules)
%
%
4.5
10.24
4.8
10.44

¥108,933 million

As of March 31, 2023
¥115,420 million
Note: “Equity ratio” is calculated at (total net assets at the end of the period minus share acquisition rights at the end of the period) divided bytotal assets at the end of the period.
“Non-consolidated capital adequacy ratio (domestic rules)” is calculated based on the “Criteria on whether the adequacy of equity capital of thebank is appropriate in light of the assets owned by the bank, etc. in accordance with the provisions of Article 14-2 of the Banking Act (Financial
Services Agency Notification No. 19 of 2006).”
2. Forecast of non-consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Ordinary profit
Full year

Millions of yen
2,500

Profit% Millions of yen(36.7)
2,000

Basic earnings per
share
%
Yen
(50.8)
48.54* Interim financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to THE
TOWA BANK, LTD. (the “Bank”) and on certain assumptions deemed to be reasonable. These statements do not purport that the Bank pledges
to realize such statements. Actual performance and other results may differ materially due to various factors.

3

･Dividends by share class
The dividends per share on share classes that differ in shareholders’ rights from ordinary shares are broken down as follows.
Class 2 Preferred Stock

Dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Year ended March 31, 2023

Yen
–

Yen
0.00

Yen
–

Yen
26.20

Yen
26.20

Year ending March 31, 2024

–

0.00
–

27.68

27.68

Year ending March 31, 2024 (Forecast)

Total

Notes: 1. Revision of cash dividend forecast most recently announced: No
2. Amount to be paid in per share: ¥200
3. Number and formula used as the basis for the calculation of dividends per share(1) Year ended March 31, 2023
(i) Calculation formula
Dividends per share = amount to be paid in per share x (Japanese yen TIBOR + 1.15%)(*) Calculated on the assumption that the amount to be paid in per share is ¥2,000, considering the effect of theconsolidation of shares (effective October 1, 2017).
(ii) Japanese yen TIBOR
Japanese yen TIBOR (12 months) as of April 1, 2022 = 0.16000%(iii) Number of issued shares
7,500,000 shares(2)Year ending March 31, 2024 (forecast)(i) Calculation formula
Dividends per share = amount to be paid in per share x (Japanese yen TIBOR + 1.15%)(*) Calculated on the assumption that the amount to be paid in per share is ¥2,000, considering the effect of theconsolidation of shares (effective October 1, 2017).
(ii) Japanese yen TIBOR
Japanese yen TIBOR (12 months) as of April 3, 2023 = 0.23364%(iii) Number of issued shares
7,500,000 shares

4Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2023

As of March 31, 2023
AssetsCash and due from banks
Call loans and bills bought
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Tangible fixed assets
Intangible fixed assets
Retirement benefit asset
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Borrowed money
Foreign exchanges
Other liabilities
Provision for bonuses
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Revaluation reserve for landRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

188,346
1,108
0
3,998
568,660
1,562,298
663
37,302
21,892
3,228
1,807
4,635
3,447
(6,995)2,390,395

221,514
628–
3,993
557,547
1,564,660
766
37,32722,067
3,314
2,198
4,499
3,558
(7,514)
2,414,563

2,144,412
115,890
161
5,736
446
48

2,184,621
106,090
71
5,990
447
51

–

0

124
432
9
1,997
3,447
2,272,706

134
497
9
1,997
3,558
2,303,469

38,653
17,50070,116(202)
126,068(12,243)
2,147
935(9,160)250
531
117,688
2,390,395

38,653
17,50070,513(138)
126,528(19,181)2,147
844(16,190)225
530
111,0932,414,563

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended
Six months ended
September 30, 2022
September 30, 2023
Ordinary income
16,79417,301
Interest income
11,28910,849Interest on loans and discounts
9,280
9,194
Interest and dividends on securities
1,907
1,597
Fees and commissions
3,027
3,160
Other ordinary income
39
459
Other income
2,437
2,832
Ordinary expenses
14,23915,300Interest expenses
8272Interest on deposits
65
55
Fees and commissions payments
1,743
1,845
Other ordinary expenses
12
17
General and administrative expenses
9,869
10,006
Other expenses
2,532
3,357
Ordinary profit
2,554
2,001
Extraordinary income
1,038–
Gain on disposal of non-current assets
1,038–
Extraordinary losses
13
22
Loss on disposal of non-current assets
510Impairment losses
7
12Profit before income taxes
3,580
1,978
Income taxes - current
512
323
Income taxes - deferred
79
123
Total income taxes
591
447
Profit2,988
1,531
Profit (loss) attributable to non-controlling interests
8(0)Profit attributable to owners of parent
2,980
1,531

6

Consolidated statements of comprehensive income (cumulative)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

7

Six months ended
September 30, 2022
2,988
(8,376)(8,225)(151)(5,388)(Millions of yen)Six months ended
September 30, 2023
1,531
(7,029)(6,938)(91)(5,498)(5,398)(5,497)10(0)

Consolidated statements of changes in equity
Six months ended September 30, 2022
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

38,653Retained earnings

17,500Total shareholders'equityTreasury shares

66,990(217)

122,927

Changes during period
Dividends of surplus
Profitattributableowners of parent

to

Disposal of treasury shares
Purchasesharesof(1,118)(1,118)

2,980

2,980

(2)

treasury

Reversal of revaluation
reserve for land
Transfer from retained
earnings to capital surplus

16

14

(0)

(0)

151

151

(1)

–

1

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

(0)

2,011

15

2,026

38,653

17,50069,002(202)

124,953

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period(2,341)

Total
Remeasurements accumulated
Revaluationof defined
otherreserve for land
benefit planscomprehensive
income
2,298

1,584

1,541

Share
acquisitionrights219

Non-controllinginterests

Total net assets

520

125,209

Changes during period
Dividends of surplus
Profitattributableowners of parent(1,118)
to

2,980

Disposal of treasury shares

14

Purchaseshares(0)oftreasury

Reversal of revaluation
reserve for land

151

Transfer from retained
earnings to capital surplus–

Net changes in items otherthan shareholders' equity(8,227)

(151)

(151)

(8,530)7

10(8,512)

Total changes during period(8,227)

(151)

(151)

(8,530)7

10(6,485)

Balance at end of period(10,569)

2,147

1,433

(6,988)227531

118,7238

Six months ended September 30, 2023
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

38,653Retained earnings

17,500Total shareholders'equityTreasury shares

70,116(202)

126,068

Changes during period
Dividends of surplus
Profitattributableowners of parent

to

Disposal of treasury shares
Purchasesharesof(1,119)(1,119)

1,531

1,531

(15)

treasury

Transfer from retained
earnings to capital surplus

15

64

48

(0)

(0)

(15)

–

Net changes in items otherthan shareholders' equity
Total changes during period
Balance at end of period

–

–

396

63

460

38,653

17,50070,513(138)

126,528

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of
period(12,243)

Total
Remeasurements accumulated
Revaluationof defined
otherreserve for land
benefit planscomprehensive
income2,147

935(9,160)Share
acquisitionrights250

Non-controllinginterests

Total net assets

531

117,688

Changes during period
Dividends of surplus
Profitattributableowners of parent(1,119)to

1,531

Disposal of treasury shares

48

Purchaseshares(0)oftreasury

Transfer from retained
earnings to capital surplus–

Net changes in items otherthan shareholders' equity(6,938)–(91)(7,029)(24)(0)(7,055)

Total changes during period(6,938)–(91)(7,029)(24)(0)(6,595)

Balance at end of period(19,181)

2,147

844

(16,190)225

530

111,0939

Quarterly non-consolidated financial statements
Non-consolidated balance sheets
As of March 31, 2023
AssetsCash and due from banks
Call loans
Trading securities
Money held in trust
Securities
Loans and bills discounted
Foreign exchanges
Other assets
Other
Tangible fixed assets
Intangible fixed assets
Prepaid pension costs
Deferred tax assets
Customers' liabilities for acceptances and guarantees
Allowance for loan losses
Total assets
Liabilities
Deposits
Borrowed money
Foreign exchanges
Other liabilities
Income taxes payable
Lease liabilities
Asset retirement obligations
Other
Provision for bonuses
Provision for reimbursement of deposits
Provision for contingent loss
Deferred tax liabilities for land revaluation
Acceptances and guarantees
Total liabilities
Net assets
Share capital
Capital surplus
Legal capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Treasury shares
Total shareholders' equity
Valuation difference on available-for-sale securities
Revaluation reserve for land
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets

10(Millions of yen)
As of September 30, 2023

188,299
1,108
0
3,998
568,672
1,564,847
663
26,88826,88821,806
3,218
462
5,043
3,447
(6,871)
2,381,584

221,465628–
3,993
557,559
1,567,238
766
26,566
26,56621,987
3,306
984
4,867
3,558
(7,372)
2,405,549

2,145,580
110,300
161
3,431
193
36
285
2,916
437
124
432
1,997
3,447
2,265,913

2,185,290
100,500
71
3,900
457
31
283
3,128
439
134
497
1,997
3,558
2,296,391

38,653
17,50017,50069,564
3,414
66,15066,150(202)
125,515(12,242)
2,147(10,095)
250
115,670
2,381,584

38,653
17,50017,50069,951
3,638
66,313
66,313(138)
125,966(19,180)
2,147(17,033)
225
109,158
2,405,549

Non-consolidated statements of income (cumulative)
Six months ended
September 30, 2022
14,888
11,288
9,280
1,905
2,724
39
836
12,363
65
65
1,572
12
9,603
1,109
2,524
1,038
13
3,550
511
79
591
2,959

Ordinary income
Interest income
Interest on loans and discounts
Interest and dividends on securities
Fees and commissions
Other ordinary income
Other income
Ordinary expenses
Interest expenses
Interest on deposits
Fees and commissions payments
Other ordinary expenses
General and administrative expenses
Other expenses
Ordinary profit
Extraordinary income
Extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit11(Millions of yen)Six months ended
September 30, 2023
15,42910,850
9,195
1,596
2,850
459
1,269
13,439
55
55
1,666
17
9,735
1,963
1,989
–
22
1,967
320
123
444
1,523

Non-consolidated statements of changes in equity
Six months ended September 30, 2022
(Millions of yen)
Shareholders' equity
Capital surplus

SharecapitalBalance at beginning of period

Legalcapitalsurplus38,653

Other
capitalsurplus17,5000Retained earnings

Total capitalsurplusLegalretainedearnings

17,500

3,190

Other
retainedearnings
Retainedearnings
brought
forwardTotal
retainedearnings

Treasuryshares

(217)

Total
shareholders'equity63,272

66,462

122,399(1,118)(1,118)(1,118)

(223)

–

–

2,959

2,959

2,959

Changes during period
Dividends of surplus
Provision of legal retained
earnings

223

ProfitDisposal of treasury shares

(2)

(2)

Purchase of treasury shares
Reversal of revaluation reserve
for landTransfer from retained earnings
to capital surplus

1

1

16

14

(0)

(0)

151

151

151

(1)

(1)

–

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

–

(0)

(0)

223

1,767

1,990

15

2,005

38,653

17,500–17,5003,414

65,03968,453(202)

124,405

Valuation and translation adjustments
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of period(2,338)

Total
Share
Revaluation valuationacquisition
reserve forandrightslandtranslation
adjustments
2,298

(40)

219

Total net
assets122,579

Changes during period
Dividends of surplus(1,118)Provision of legal retained
earnings–

Profit2,959

Disposal of treasury shares

14

Purchase of treasury shares(0)

Reversal of revaluation reserve
for land151

Transfer from retained earnings
to capital surplus–

Net changes in items other thanshareholders' equity(8,229)(151)(8,381)

7(8,373)

Total changes during period(8,229)(151)(8,381)

7(6,368)

Balance at end of period(10,568)

2,147(8,421)

227

116,21012

Six months ended September 30, 2023
(Millions of yen)
Shareholders' equity
Capital surplus

SharecapitalBalance at beginning of period

Legalcapitalsurplus38,653

Other
capitalsurplus17,500–Retained earnings

Total capitalsurplusLegalretainedearnings

17,500

3,414

Other
retainedearnings
Retainedearnings
brought
forwardTotal
retainedearnings

Treasuryshares

(202)

Total
shareholders'equity66,15069,564

125,515(1,119)(1,119)(1,119)

(223)

–

–

1,523

1,523

1,523

Changes during period
Dividends of surplus
Provision of legal retained
earnings

223

ProfitDisposal of treasury shares

(15)

(15)

Purchase of treasury shares
Transfer from retained earnings
to capital surplus

15

15

(15)

64

48

(0)

(0)

(15)

–

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

–

–

–

223

163

387

63

451

38,653

17,500–17,5003,638

66,313

69,951(138)

125,966

Valuation and translation adjustments
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of period(12,242)

Total
Share
Revaluation valuationacquisition
reserve forandrightslandtranslation
adjustments
2,147(10,095)

250

Total net
assets

115,670

Changes during period
Dividends of surplus(1,119)Provision of legal retained
earnings–

Profit1,523

Disposal of treasury shares

48

Purchase of treasury shares(0)

Transfer from retained earnings
to capital surplus–

Net changes in items other thanshareholders' equity(6,938)–(6,938)(24)(6,963)

Total changes during period(6,938)–(6,938)(24)(6,511)

Balance at end of period(19,180)

2,147(17,033)

225

109,158

13