This is the preliminary translation of the Japanese version Lawson Bank financial results provided by Lawson, Inc.

Financial Summaryfor the Third Quarter of Fiscal Year 2019 Ended December 31, 2019
February 12, 2020
Lawson Bank, Inc. (https://www.lawsonbank.jp/)

I.

Financial Results Highlights(Financial figures are truncated to the unit stated)

1.

Results of Operation (Non-consolidated)
3Q FY2018(9months)
Total revenue
Net interest income
Net fees and commissions
Net provision of generalreserve for credit losses

13,786-392
14,178General and administrative
expenses
Ordinary business profits
Ordinary profits
Net income
2.

(Millions of Yen)
3Q FY2019(9months)
19,677-815
20,4932-1

13,070713
684
417

17,796
1,883
2,042
1,783

Balance Sheets (Non-consolidated)

Cash and due from banks
Loans
Other assets
Total assets
Deposits
Borrowed money
Other liabilities
Total liabilities
Total equity

FY2018(As of March 31, 2019)319,744065,919385,664
14,840280,000
69,671
364,512
21,151

1(Millions of Yen)
3Q FY2019(As of December 31, 2019)474,91125
68,871
543,808
29,424260,000
231,448
520,873
22,935

3.

Financial Ratios (Non-consolidated)
3Q FY2018(9 months)
Expense-to-revenue ratio

3Q FY2019(9 months)
94.8%

FY2018(As of March 31, 2019)

90.4%(Millions of Yen)
3Q FY2019(As of December 31, 2019)

Risk-weighted assets

72,68481,565

Core capital

7,362

9,606

10.13%

11.78%FY2018(As of March 31, 2019)13,4763Q FY2019(As of December 31, 2019)13,48628,17745,161

Capital adequacy ratio

Number of ATM units installed
Total number of banking
accounts

3Q FY2018(9 months)
Total number of ATM usage(1,000s)
Average daily ATM usage (no.
of times per day per unit)

3Q FY2019(9 months)

140,676

178,820

49.8

48.1

Note:
1. In FY2018, figures are from operations after June 1, 2018 when the absorption-type split of Lawson ATMNetworks, Inc. was implemented.
2. Figures of total number of ATM usage are rounded off a number less than 1,000.
3. Figures of average daily ATM usage are rounded off to one decimal places.

FY2018(As of March 31, 2019)
Number of affiliated financial
institutions (banks, companies,depositories)

113

3Q FY2019(As of December 31, 2019)123

Note: The JA Bank and JF Marine Bank are considered each as an institution depending on business categories.

2

II.

Financial Statements
1. Balance Sheets (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)FY20183Q FY2019(As of March 31, 2019)(As of December 31, 2019)[Assets]
Cash and due from banks
Loans
Suspense payments in ATMs
Other assets
Tangible fixed assets
Intangible fixed assets
Reserve for loan losses
Total assets[Liabilities]
Deposits
Borrowed money
Suspense receipts of ATM
Other liabilities
Lease obligations
Accrued employees’ bonuses
Total liabilities[Equity]Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Total equity
Total liabilities and equity

3319,744
025,5199,731
16,87913,793-3385,664

474,91125
26,386
10,736
18,41913,330-2543,808

14,840280,000
55,818
13,681
11,186
172
364,51229,424260,000
216,780
14,537
11,773130
520,873

11,60011,600-2,04821,151
21,151
385,664

11,60011,600-264
22,93522,935543,808

2.

Statement of Income (Non-consolidated)(Financial figures are truncated to the unit stated)(Millions of Yen)
3Q FY2018
3Q FY2019(From April 1, 2018 to(From April 1, 2019 toDecember 31, 2018)
December 31, 2019)
Ordinary income
Interest income
Interest on loans anddiscounts
Interest and dividends onsecurities
Interest on call loans
Interest income on due frombanks
Fees and commissions income
ATM commissions received
Other business income
Other ordinary income
Ordinary Expenses
Interest expenses
Interest on deposits
Interest on call money
Interest on borrowed money
Other interest paid
Fees and commissions
expensesATM installationcommissions expenses
ATM commissions expenses
Other business expenses
General and administrative
expenses
Other ordinary expenses
Ordinary profit
Extraordinary profits
Other extraordinary profits
Extraordinary losses
Tangible fixed asset disposal
expenses
Other extraordinary losses
Net income before income taxes
Income taxes
Income taxes
Deferred income taxes
Net income

418,292-8

26,193-160

1-0--6-8
18,282
18,2810
18
17,607
384
00
170
213

-14
25,94625,868263
24,151
799
04494
300

4,103

5,452

1,868
2,225
0

2,3942,913-

13,07049684
15
1517,796
103
2,042
0
0
8
3668
251
247
4417

4
2,034
251
251
1,783