Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements• Consolidated Balance Sheets
The Nanto Bank, Ltd. and Consolidated Subsidiaries as of March 31, 2023 and 2022
Thousands of
U.S. dollars(Note 1)Millions of yen

2023

Assets:Cash and due from banks (Notes 23 and 25) .................................................
Debt purchased (Notes 25 and 26) ................................................................
Money held in trust (Notes 25 and 26)............................................................
Securities (Notes 9, 10, 11, 14, 25 and 26) ....................................................
Loans and bills discounted (Notes 10, 11, 12 and 25) ....................................
Foreign exchanges (Note 10) .........................................................................
Lease receivables and lease investment assets (Note 11)...............................
Other assets (Notes 10, 11 and 15) ...............................................................
Tangible fixed assets (Note 13) .......................................................................
Buildings ....................................................................................................
Land ..........................................................................................................
Construction in progress ............................................................................
Other tangible fixed assets .........................................................................
Intangible fixed assets ....................................................................................
Software ....................................................................................................
Other intangible fixed assets (Note 11) .......................................................
Deferred tax assets (Note 30) .........................................................................
Customers’ liabilities for acceptances and guarantees (Note 10) ....................
Reserve for possible loan losses (Notes 3 and 25)..........................................
Total assets ................................................................................................
Liabilities and net assets:
Liabilities:
Deposits (Notes 11 and 25)............................................................................
Negotiable certificates of deposit (Note 25) ....................................................
Call money and bills sold (Note 25) ................................................................
Payables under repurchase agreements (Notes 11 and 25) ............................
Payables under securities lending transactions (Notes 11 and 25) ..................
Borrowed money (Notes 11, 25 and 35) ........................................................
Foreign exchanges.........................................................................................
Borrowed money from trust account ..............................................................
Other liabilities (Note 35) ................................................................................
Liability for retirement benefits (Note 28) .........................................................
Reserve for reimbursement of deposits ..........................................................
Reserve for contingent losses ........................................................................
Reserve for share-based payment .................................................................
Reserve under special laws ............................................................................
Deferred tax liabilities (Note 30) ......................................................................
Acceptances and guarantees.........................................................................
Total liabilities .............................................................................................
Net assets (Note 7):
Common stock: Authorized 64,000 thousand shares in 2023 and 2022
Issued 33,025 thousand shares in 2023 and 2022 ...............
Capital surplus ...............................................................................................
Retained earnings ..........................................................................................
Less treasury stock: Issued 1,273 thousand shares in 2023
and 472 thousand shares in 2022 ..................................
Total stockholders’ equity ...........................................................................
Valuation difference on available-for-sale securities (Note 26) .........................
Deferred gains or losses on hedges (Note 27) ................................................
Accumulated adjustments for retirement benefits (Note 28) ............................
Total accumulated other comprehensive income ......................................
Total net assets ..........................................................................................
Total liabilities and net assets......................................................................
See Notes to Consolidated Financial Statements.

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2022

1,085,005
1,503
43,5791,320,545
3,944,387
1,354
26,221
72,00640,493
10,567
23,647
3,529
2,749
4,674
4,228
446
17,046
8,759(23,461)
6,542,117¥¥¥

5,715,665
8,140——
139,161
356,490806
4,659
32,69911,916
76
831
96
3
11
8,759
6,279,318¥

37,924

¥

¥

¥

¥

2023

1,495,598
1,466
44,0171,470,517
3,870,774
2,488
24,99055,92237,782
10,70823,915
313
2,845
4,858
4,411
447
7,247
8,261
(22,485)
7,001,441$¥

5,647,407
7,540
176,835
12,742
102,432
709,227473
5,467
31,586
11,976
104
834
61
3
12
8,261
6,714,967$ 42,804,351
60,960——1,042,170
2,669,737
6,036
34,891
244,881
89,238
569
6,223
718
22
82
65,595$ 47,025,522¥

37,924¥8,125,552
11,255326,361
9,889,500
29,539,331
10,140196,367
539,249
303,250
79,135177,091
26,42820,58735,003
31,663
3,340
127,656
65,595(175,698)$ 48,993,611$

284,01134,749200,383

34,749199,208

260,233
1,500,659(3,418)(1,799)(25,597)

269,639(6,537)95(398)(6,840)262,798
6,542,117

270,083
15,121
1,814(546)
16,390286,473
7,001,441

2,019,314(48,955)711(2,980)(51,224)
1,968,082$ 48,993,611¥

About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements• Consolidated Statements of Income
The Nanto Bank, Ltd. and Consolidated Subsidiaries for the Years Ended March 31, 2023 and 2022
Thousands of
U.S. dollars(Note 1)Millions of yen

2023

Income (Note 15):Interest income:Interest on loans and bills discounted .........................................................
Interest and dividends on securities............................................................
Other interest income .................................................................................
Trust fees .......................................................................................................
Fees and commissions ..................................................................................
Other operating income (Note 16) ..................................................................
Other income (Note 17) ..................................................................................
Total income ...........................................................................................

¥

Expenses:
Interest expense:
Interest on deposits....................................................................................
Interest on borrowings and rediscounts ......................................................
Interest on payables under securities lending transactions..........................
Other interest expense ...............................................................................
Fees and commissions ..................................................................................
Other operating expenses (Note 18) ...............................................................
General and administrative expenses (Note 19) ..............................................
Other expenses (Notes 20 and 21) .................................................................
Total expenses .......................................................................................
Income before income taxes ............................................................................
Income taxes (Note 30):
Current ..........................................................................................................
Deferred.........................................................................................................
Total income taxes .....................................................................................
Net income ........................................................................................................
Net income attributable to owners of parent...................................................

¥

2022

¥

34,474
10,8651,523
16
23,662
4,268
3,043
77,85332,34014,2011,644
8
22,246
3,425
3,750
77,616

2023

$

294
1,408
1,569
469
12,916
12,914
39,481
2,483
71,537

350
151
34
366
12,3102,418
40,234
3,840
59,7062,201
10,544
11,7503,512
96,727
96,712295,671
18,595535,737

6,316

17,91047,300

1,380
203
1,584
4,731
4,731

5,885
156
6,042
11,867
11,867

10,334
1,520
11,86235,43035,430¥$U.S. dollars(Note 1)Yen

Per share of common stock:
Net income - basic (Note 33) .........................................................................
Dividends (Note 7)..........................................................................................

¥

258,174
81,367
11,405
119
177,203
31,962
22,788583,037

147.75113.00¥364.29110.00

$

1.10
0.84

See Notes to Consolidated Financial Statements.

• Consolidated Statements of Comprehensive Income
The Nanto Bank, Ltd. and Consolidated Subsidiaries for the Years Ended March 31, 2023 and 2022
Thousands of
U.S. dollars(Note 1)Millions of yen

2023

Net income .........................................................................................................
Other comprehensive income (loss) (Note 22):
Valuation difference on available-for-sale securities .........................................
Deferred gains (losses) on hedges..................................................................
Adjustments for retirement benefits (Note 28) .................................................
Total other comprehensive income (loss) ....................................................
Total comprehensive income (loss) for the year....................................................
Total comprehensive income (loss) attributable to:
Owners of parent ...........................................................................................

2022

¥

11,867¥(21,659)(1,719)147(23,231)(18,499)¥(18,499)

¥

4,731

2023

$

35,430¥(16,099)(193)
142(16,151)(4,283)$(162,203)(12,873)
1,100(173,975)(138,538)¥(4,283)$(138,538)

See Notes to Consolidated Financial Statements.

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements• Consolidated Statements of Changes in Net Assets
The Nanto Bank, Ltd. and Consolidated Subsidiaries for the Years Ended March 31, 2023 and 2022
Millions of yen
Number ofshares ofcommonstock(thousands)

Commonstock

CapitalsurplusRetainedearnings

33,025¥ 37,924¥ 34,749¥ 189,973

Balance at April 1, 2021 ........................

Less treasury
stock

¥

Valuationdifferenceonavailablefor-salesecurities(1,693) ¥ 31,221

Deferred
gains orlosses onhedges

Accumulated
adjustments
for retirement
benefits

¥

¥

2,008

Stock
acquisitionrights(688) ¥

63

Total net
assets¥ 293,559

Cash dividends ..................................

(2,609)(2,609)Net income attributable to ownersof parent ............................................

11,867

11,867Purchase of treasury stock.................
Disposition of treasury stock ..............

(22)

Transfer from retained earnings tocapital surplus....................................

22

(147)

(147)

41

18

(22)

—

Net changes in items other thanstockholders’ equity ............................
Balance at April 1, 2022 ........................

(16,099)
33,025¥ 37,924¥ 34,749¥ 199,208¥(1,799) ¥ 15,121

(193)
¥

1,814

¥

142

(63)

(16,214)(546) ¥—

¥ 286,473

Cash dividends .................................

(3,556)(3,556)

Net income attributable to ownersof parent ...........................................

4,731

4,731

Purchase of treasury stock ...............
Disposition of treasury stock ............

(0)

Transfer from retained earnings tocapital surplus ..................................

0(1,618)(1,618)

0

0

(0)

—

Net changes in items other thanstockholders’ equity...........................
Balance at March 31, 2023 (Note 7)......

(21,659)
33,025¥ 37,924¥ 34,749¥ 200,383¥(3,418) ¥(1,719)(6,537) ¥

95

¥

147

—

(23,231)(398) ¥—

¥ 262,798

Thousands of U.S. dollars (Note 1)

Commonstock

Balance at April 1, 2022 ........................ $284,011 $CapitalsurplusRetainedearnings

Less treasurystock

260,233 $ 1,491,859 $Valuationdifference
on availablefor-salesecurities(13,472) $113,240 $Deferred
gains orlosses onhedges

Accumulated
adjustments
for retirement
benefits

13,584 $(4,088) $StockacquisitionrightsTotal net
assets— $ 2,145,383

Cash dividends .................................

(26,630)(26,630)

Net income attributable to ownersof parent ...........................................

35,43035,430Purchase of treasury stock ...............
Disposition of treasury stock ............

(0)

Transfer from retained earnings tocapital surplus ..................................

0(12,117)(12,117)

0

0

(0)

—

Net changes in items other thanstockholders’ equity...........................
Balance at March 31, 2023 (Note 7)...... $See Notes to Consolidated Financial Statements.

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284,011 $

260,233 $ 1,500,659 $(25,597) $(48,955) $(12,873)
711 $

1,100

—

(173,975)(2,980) $— $ 1,968,082

About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements• Consolidated Statements of Cash Flows
The Nanto Bank, Ltd. and Consolidated Subsidiaries for the Years Ended March 31, 2023 and 2022
Thousands of
U.S. dollars(Note 1)Millions of yen

2023

Cash flows from operating activities
Income before income taxes ......................................................................
Depreciation ...............................................................................................
Impairment loss..........................................................................................
Share of loss (profit) of entities accounted for using equity method .............
Increase (decrease) in reserve for possible loan losses ...............................
Increase (decrease) in liability for retirement benefits ...................................
Increase (decrease) in reserve for reimbursement of deposits .....................
Increase (decrease) in reserve for contingent losses ...................................
Increase (decrease) in reserve for share-based payment ............................
Interest income ..........................................................................................
Interest expense.........................................................................................
Loss (gain) on securities .............................................................................
Loss (gain) on money held in trust ..............................................................
Foreign exchange losses (gains) .................................................................
Losses (gains) on sales of fixed assets .......................................................
Net decrease (increase) in loans and bills discounted .................................
Net increase (decrease) in deposits ............................................................
Net increase (decrease) in negotiable certificates of deposit .......................
Net increase (decrease) in borrowed money ...............................................
Net decrease (increase) in due from banks (excluding due from the Bank of Japan)...
Net decrease (increase) in call loans and bills bought .................................
Net increase (decrease) in call money .........................................................
Net increase (decrease) in payables under securities lending transactions ...
Net decrease (increase) in foreign exchange assets ....................................
Net increase (decrease) in foreign exchange liabilities .................................
Net decrease (increase) in lease receivables and lease investment assets ....
Net increase (decrease) in borrowed money from trust account .................
Interest received .........................................................................................
Interest paid ...............................................................................................
Other .........................................................................................................
Subtotal .................................................................................................
Income taxes paid ......................................................................................
Net cash provided by (used in) operating activities..................................

¥

6,316
3,412
43
14
976
151
(28)
(2)
35
(46,862)
3,741
7,820
152
(7,736)(37)(73,613)
68,258600(352,737)(83)(36)(189,578)
36,7291,134
332(1,364)(808)
47,352(2,645)(8,973)(507,436)(6,428)(513,864)

2022¥

17,910
3,296
62
9
716
419
(53)
(300)
61
(48,185)902(1,260)167(8,530)17(83,896)
207,439
3,500
82,526
1,077
361
152,500(4,032)(1,250)
(104)
135
(797)
48,537(972)
1,094
371,351(3,769)367,5812023$

47,30025,552
322
104
7,309
1,130
(209)
(14)
262
(350,947)
28,01658,563
1,138(57,934)(277)(551,284)
511,181
4,493(2,641,631)
(621)
(269)
(1,419,740)
275,061
8,492
2,486(10,214)(6,051)
354,616(19,808)(67,198)(3,800,164)(48,138)(3,848,303)

Cash flows from investing activities
Purchase of securities ................................................................................
Proceeds from sales of securities ...............................................................
Proceeds from maturities of securities ........................................................
Increase in money held in trust ...................................................................
Decrease in money held in trust .................................................................
Purchase of tangible fixed assets ...............................................................
Proceeds from sales of tangible fixed assets ..............................................
Purchase of intangible fixed assets.............................................................
Payments for asset retirement obligations ..................................................
Other .........................................................................................................
Net cash provided by (used in) investing activities ..........................................

(374,000)
397,341
91,188(321)
48(4,829)539(1,461)(48)(101)
108,355(362,645)
229,244
80,753(19,719)
15,578(1,753)426(1,209)(26)(13)(59,366)(2,800,868)
2,975,668
682,902(2,403)359(36,164)
4,036(10,941)
(359)
(756)
811,465

Cash flows from financing activities
Dividends paid ..........................................................................................
Purchase of treasury stock .........................................................................
Other .........................................................................................................
Net cash used in 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 beginning of year ...........................................
Cash and cash equivalents at end of year (Note 23) .....................................

(3,553)(1,618)0(5,171)
5(410,675)
1,493,835
1,083,159(2,609)(147)
0(2,756)9
305,468
1,188,367
1,493,835(26,608)(12,117)
0(38,725)37(3,075,526)
11,187,261$ 8,111,727¥¥

See Notes to Consolidated Financial Statements.

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements
Notes to Consolidated Financial Statements
The Nanto Bank, Ltd. and Consolidated Subsidiaries
Years Ended March 31, 2023 and 2022

1. BASIS OF PRESENTATION
The accompanying consolidated financial statements of The Nanto Bank, Ltd. (the “Bank”) and its consolidated subsidiaries (together, the “Group”)
have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting
regulations and the Ordinance for Enforcement of the Banking Law and in conformity with accounting principles generally accepted in Japan, which
are different in certain respects from the application and disclosure requirements of International Financial Reporting Standards.
The accompanying consolidated financial statements have been restructured and translated into English, with some expanded descriptions, fromthe consolidated financial statements of the Bank prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance Bureau of
the Ministry of Finance as required by the Financial Instruments and Exchange Act. Some supplemental information included in the statutory Japanese
language consolidated financial statements, but not required for fair presentation, is not presented in the accompanying consolidated financial
statements.
As permitted by the Financial Instruments and Exchange Act of Japan, amounts less than one million yen have been omitted. As a result, thetotals shown in the financial statements do not necessarily agree with the sum of the individual amounts.
The translation of the Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan, using theprevailing exchange rate at March 31, 2023, which was ¥133.53 to US$1.00. The translations should not be construed as representations that theJapanese yen amounts have been, could have been or could in the future be converted into U.S. dollars at this or any other rate of exchange.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa. Principles of consolidation
The accompanying consolidated financial statements include the accounts of the Bank and its eleven (eleven in 2022) subsidiaries at March 31, 2023.
(Changes in scope of consolidation)
In the fiscal year ended March 31, 2022, Nanto Investment Advisors Co., Ltd. was excluded from the scope of consolidation because thecompany resolved to dissolve at the annual stockholders’ meeting held on June 30, 2021 and its liquidation was completed on December 9, 2021.
The Bank had four (three in 2022) unconsolidated subsidiaries in the fiscal year ended March 31, 2023, Nanto Sixth Industry Support
Investment Limited Partnership, Nanto Regional Vitality Creation Support Investment Limited Partnership, Nanto CVC No. 3 Akebono Investment
Limited Partnership and Nanto TSUNAGU Fund Investment Limited Partnership. The unconsolidated subsidiaries were excluded from the scopeof consolidation because the portion of their assets, net income (loss), retained earnings, accumulated other comprehensive income and others
that correspond to the Bank’s equity were immaterial to the extent that their exclusion from the scope of consolidation did not preclude reasonable
judgment of the Group’s financial position and results of operations.
(Establishment of unconsolidated subsidiaries)
In the fiscal year ended March 31, 2023, Nanto TSUNAGU Fund Investment Limited Partnership became an unconsolidated subsidiary due to its
new establishment.
In the fiscal year ended March 31, 2022, Nanto CVC No. 3 Akebono Investment Limited Partnership became an unconsolidated subsidiary due
to its new establishment on February 1, 2022.
The Bank had three (two in 2022) affiliates over which it had the ability to exercise significant influence over operating and financial policies, Nara
Mirai Design Co., Ltd., Nara Kominka Machizukuri Partners Co., Ltd. and Frontier Nanto Investment LLC, and these affiliates were accounted for by
the equity method.
(Changes in scope of the equity method)
In the fiscal year ended March 31, 2023, Frontier Nanto Investment LLC was included in the scope of the equity method due to its new
establishment.
In the fiscal year ended March 31, 2022, Nara Mirai Design Co., Ltd. was included in the scope of the equity method due to its new establishment
on April 1, 2021, and Nara Kominka Machizukuri Partners Co., Ltd. was included in the scope of the equity method due to the acquisition of its sharesby the Bank on January 20, 2022.
The Bank had four (three in 2022) unconsolidated subsidiaries not accounted for by the equity method in the fiscal year ended March 31, 2023,
Nanto Sixth Industry Support Investment Limited Partnership, Nanto Regional Vitality Creation Support Investment Limited Partnership, Nanto CVC
No. 3 Akebono Investment Limited Partnership and Nanto TSUNAGU Fund Investment Limited Partnership. The Bank also had five (three in 2022)
affiliates not accounted for by the equity method, Nanto CVC Investment Limited Partnership, Nanto CVC No. 2 Investment Limited Partnership andNara Kominka Machizukuri Fund Investment Limited Partnership, Frontier Nanto Investment Limited Partnership and Yamato Social Impact Investment
Limited Partnership. The unconsolidated subsidiaries and affiliates not accounted for by the equity method were excluded from the scope of the equity
method because the effect of their inclusion on the consolidated financial statements would not have been significant in terms of the portion of net
income (loss), retained earnings, accumulated other comprehensive income and others which correspond to the Bank’s equity.
(Establishment of unconsolidated subsidiaries not accounted for by the equity method)
In the fiscal year ended March 31, 2023, Nanto TSUNAGU Fund Investment Limited Partnership became an unconsolidated subsidiary notaccounted for by the equity method due to its new establishment.
In the fiscal year ended March 31, 2022, Nanto CVC No. 3 Akebono Investment Limited Partnership became an unconsolidated subsidiary notaccounted for by the equity method due to its new establishment on February 1, 2022.
(Establishment of affiliates not accounted for by the equity method)
In the fiscal year ended March 31, 2023, Frontier Nanto Investment Limited Partnership and Yamato Social Impact Investment Limited Partnership
became affiliates not accounted for by the equity method due to their new establishment.
In the fiscal year ended March 31, 2022, Nara Kominka Machizukuri Fund Investment Limited Partnership became an affiliate not accounted forby the equity method because Nara Kominka Machizukuri Partners Co., Ltd., an affiliate accounted for by the equity method, was an unlimited liability
partner.
Potager Co., Ltd., of which the Bank owns between 20% and 50% of the voting rights (execution rights), was not recognized as an affiliate for the
fiscal years ended March 31, 2023 and 2022 because it is held by the Bank’s unconsolidated subsidiary for the purpose of incubating the investees
and not for the purpose of controlling the entity.

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About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

All consolidated subsidiaries have fiscal years ending on March 31.
All significant intercompany accounts, transactions and unrealized profits on transactions are eliminated.
b. Cash and cash equivalents
In preparing the consolidated statements of cash flows, cash and cash equivalents represents cash and due from the Bank of Japan.
c. Finance leases
As lessor:
Finance leases are accounted for in a manner similar to that used for ordinary sale transactions. Revenue from finance lease transactions and related
costs are recognized upon receipt of the lease payments. Finance leases which transfer ownership of the lease assets to the lessee are recognized aslease receivables, and all finance leases which do not transfer ownership of the lease assets to the lessee are recognized as lease investment assets.
For finance leases which commenced before April 1, 2008 and do not transfer ownership of the lease assets to the lessee, the appropriate bookvalue (net of accumulated depreciation and amortization) in tangible and intangible fixed assets as of March 31, 2008 was recorded as the beginningbalance of “Lease receivables and lease investment assets,” and the total amount of interest equivalent for the remaining lease term after the adoptionof the “Accounting Standard for Lease Transactions” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 13, issued on March 30, 2007)
has been allocated over the remaining lease term using the straight-line method.
For the fiscal years ended March 31, 2023 and 2022, differences between income before income taxes and income before income taxes
calculated as if the accounting treatment for ordinary sale transactions had been applied to the finance leases which do not transfer ownership of theleased assets to the lessee were not material.
d. Securities
Trading securities are stated at fair value. Gains and losses realized on disposal and unrealized gains and losses from market value fluctuations arerecognized as gains and losses in the period of the disposal or the change. Cost of sales for such securities is determined using the moving averagemethod. Held-to-maturity debt securities are stated at amortized cost on a straight-line method, cost of which is determined using the moving averagemethod. Stocks of affiliates accounted for by the equity method and unconsolidated subsidiaries and affiliates not accounted for by the equity method
are stated at cost using the moving average method. Available-for-sale securities with available fair values are stated at fair value. Unrealized gains andlosses on available-for-sale securities are reported, net of applicable income taxes, as a separate component of accumulated other comprehensive
income. Equity securities, etc., with no market price included in available-for-sale securities are stated at moving average cost.
If the fair value of held-to-maturity debt securities or available-for-sale securities declines significantly, the securities are stated at fair value, andthe difference between the fair value and the carrying amount is recognized as a loss in the period of the decline. In such a case, the fair value will be
the carrying amount of the securities at the beginning of the next fiscal year.
Securities managed as trust assets in individually managed money held in trust primarily for securities management purposes are measured at fairvalue.
e. Derivatives and hedge accounting
Derivatives are measured at fair value.
To account for hedging transactions in connection with interest rate risk arising from financial assets and liabilities, the Bank applies the deferredhedge accounting method stipulated in “Treatment for Accounting and Auditing of Application of Accounting Standard for Financial Instruments in
the Banking Industry” (Japanese Institute of Certified Public Accountants (“JICPA”) Industry Committee Report No. 24, March 17, 2022). The Bank
assesses the effectiveness of such hedges in offsetting movement in the fair value from changes in interest rates by classifying the hedged items, suchas loans and deposits, and the hedging instruments, such as interest rate swaps, by their maturity. The Bank assesses the effectiveness of cash flow
hedges by verifying the correlation between the hedged items and the hedging instruments.
In order to hedge risk arising from the volatility of exchange rates for available-for-sale securities (excluding bonds) denominated in foreign
currencies, the Bank applies fair value hedge accounting with the condition that the hedged available-for-sale securities are designated in advance andthat sufficient on-balance (actual) or off-balance (forward) liability exposure exists to cover the cost of the hedged securities denominated in the same
foreign currency.
f. Tangible fixed assets (except for leased assets)
Depreciation of tangible fixed assets of the Bank is computed by the declining balance method, except for buildings (excluding facilities attached tobuildings and structures acquired on or before March 31, 2016, which are depreciated by the declining balance method) which are depreciated by thestraight-line method. The estimated useful lives of major items are as follows:
Buildings
6 to 50 years
Others3 to 20 years
Depreciation of the assets of the consolidated subsidiaries is computed principally by the declining balance method over the estimated useful lifeof the asset.
g. Intangible fixed assets (except for leased assets)
Amortization of intangible fixed assets is computed by the straight-line method. Acquisition costs of software to be used internally are capitalized andamortized by the straight-line method primarily over a useful life of five years.
h. Lease assets
Lease assets with respect to finance leases that do not transfer ownership of tangible fixed assets and intangible fixed assets are depreciated oramortized using the straight-line method with the assumption that the term of the lease is the useful life. The residual value of lease assets is the value
guaranteed in the lease contract or zero for assets without such guaranteed value.

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Consolidated Financial Statements

Consolidated Financial Statements
i. Reserve for possible loan losses
A reserve for possible loan losses is provided according to predetermined standards.
For loans to insolvent customers who are undergoing bankruptcy or other special liquidation (“bankrupt borrowers”) or who are in a similar
financial condition (“effectively bankrupt borrowers”), the reserve for possible loan losses is provided based on the amount of the claims net ofthe amount expected to be recovered from collateral and guarantees and net of the deducted amount mentioned below. For the unsecured andunguaranteed portions of loans to customers not presently in the above circumstances but for whom there is a high probability of so becoming (“likely
to become bankrupt borrowers”), the Bank deducts the estimated future cash flows and the amount expected to be recovered from collateral andguarantees from the loan amount and of that remainder reports the amount that it recognizes to be necessary after comprehensively judging thecustomer’s ability to pay.
For loans pertaining to customers other than the above, the Bank reports mainly the anticipated loss for the next one or three years. The
anticipated loss is calculated by region using the loss rate based on the average value in a fixed past period of the loan loss ratio with the actual loan
loss of one or three years as its foundation with necessary adjustments such as future prospects, etc.
All claims are assessed by the operating divisions based on the self-assessment criteria for asset quality, and the assessment results are auditedby the Asset Audit Division, which is independent from the operating divisions.
For claims against “bankrupt borrowers” and “effectively bankrupt borrowers,” the amount exceeding the estimated value of collateral andguarantees is deemed uncollectible and is deducted directly from those claims in principle. At March 31, 2023 and 2022, the deducted amounts were
¥5,367 million ($40,193 thousand) and ¥6,233 million, respectively.
The reserve for possible loan losses of the consolidated subsidiaries is provided for general claims by the amount deemed necessary based on
the historical loan loss ratio and for certain doubtful claims by the amount deemed uncollectible based on an assessment of each claim.
j. Employee retirement benefits
In calculating projected benefit obligations, expected benefits are attributed to each period by the benefit formula basis.
Prior service costs are recognized as profit or loss at the time of occurrence.
Actuarial gains and losses are amortized from the fiscal year following the year in which the gains and losses are recognized by the straight-line
method over a fixed period (ten years) within the average remaining service years of the current employees.
Consolidated subsidiaries applied the simplified method where the amount to be required for voluntary termination at the fiscal year-end isrecorded as projected benefit obligations in the calculation of the liability for retirement benefits and retirement benefit costs.
k. Reserve for reimbursement of deposits
A reserve for reimbursement of deposits which were derecognized as liabilities under certain conditions is provided for possible losses on future claimsof withdrawal based on historical reimbursement experience.
l. Reserve for contingent losses
To pay its contribution to the Credit Guarantee Corporation, the Bank provides a reserve for contingent liabilities not covered by other reserves in an
amount deemed necessary based on estimated future losses.
m. Reserve for share-based payment
To prepare for the delivery of the Bank’s shares through the Director Remuneration BIP (Board Incentive Plan) Trust, the estimated amount of shares
to be delivered in proportion to the points allocated to the Directors in accordance with the stock benefit rules is recorded as reserve for share-based
payment.
n. Reserve under special laws
Reserve under the special laws represents Financial Instruments Transaction Liability Reserve prescribed in Article 46-5, Paragraph 1 of the Financial
Instruments Exchange Act. The amount is recorded as determined by the consolidated subsidiaries in accordance with the provisions of Article 175 of
the Cabinet Office Order on Financial Instruments Business, etc., in order to provide for losses arising from security related accidents.
o. Foreign currency translations
Foreign currency assets and liabilities are translated at fiscal year-end exchange rates.
p. Income taxes
Deferred income taxes are recorded to reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for tax andfinancial reporting purposes.
The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary
differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes.
q. Criteria for recognizing lease income and costs for finance leases
Lease income and costs are recognized at the time of receiving lease fees.

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r. Criteria for recognizing revenue from contracts with customers
The Group has adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and the “Implementation
Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, March 26, 2021), and recognizes revenue when control ofpromised goods or services is transferred to a customer in an amount that reflects the consideration to which it expects to be entitled in exchange forthose goods or services.
The Bank and its consolidated subsidiaries recognize information on transactions with customers based on the following five steps:
Step 1: Identify the contract(s) with customers.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
Revenue from transactions with customers of the Bank and its consolidated subsidiaries, etc. relates mainly to transaction services that arerecognized when control of the promised goods or services is transferred to the customer and includes fees and commissions related to deposit
services, lending services, exchange services and others.

3. SIGNIFICANT ACCOUNTING ESTIMATES
Those items whose amounts have been recognized in the consolidated financial statements for the current consolidated fiscal year based on
accounting estimates which could have a material impact on the consolidated financial statements for the next consolidated fiscal year are as follows.
(1) Reserve for possible loan losses
Credit operations are one of the major operations of the Group, and assets with credit risk, such as loans, occupy a very important place inconsolidated net assets on the consolidated balance sheet. So recognition of the reserve for possible loan losses has a large impact on the operating
results and financial position and is judged to be material in the accounting estimates.
(2) Amount recognized in the consolidated financial statements
The reserve for possible loan losses recognized in the consolidated balance sheets as of March 31, 2023 and 2022 was as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Reserve for possible loan losses ...............................................................................

¥

23,461

2022¥

22,485

2023$

175,698

The details concerning the accounting estimates adopted when making the calculation are set forth below.
(3) Accounting estimates(a) Methods for calculating amounts
Calculation methods are stated in the Notes (SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES i. Reserve for possible loan losses). The asset
appraisals stated in the reserve for possible loan losses recognition standards refer to individually analyzing and considering the assets held andclassifying them based on the degree of nonrecovery risk and loss of value risk. Appropriate depreciation and reservation are implemented based on
the category of borrowers (normal borrowers, needs attention borrowers, likely to become bankrupt borrowers, effectively bankrupt borrowers andbankrupt borrowers).
(b) Major assumptions used in calculating amounts
The Bank assumes that losses nearly equivalent to historical loan losses for each category of borrowers would be incurred. For the claims equivalent
to normal claims and claims which need attention, the Bank calculated the required reserve amount for each region using the expected loss ratetaking into consideration the necessary adjustments to the average value of the loan loss ratio for a fixed period in the past. The determination of
the borrower category is based on the credit rating determined by the rating models and the borrower’s repayment ability based on their substantial
financial position, financing capacities, and profitability, etc., and the terms and conditions of the loans and payment status of the borrower. Also, theBank gives comprehensive consideration to the borrower’s sustainability, projected profitability, and ability to pay obligations based on their annual
repayable amount, appropriateness of their business improvement plans, and other factors in light of the borrower’s industry characteristics.
Furthermore, in the case that management reconstruction is thought to be proceeding in line with a drastic and highly feasible business
improvement plan and a reasonable and highly feasible business improvement plan, the loans shall be deemed not to qualify as claims corresponding
to restructured loans or claims likely to become bankrupt borrowers.
Note that, at the end of the fiscal years ended March 31, 2023 and 2022, the Bank anticipated that the impact of the new coronavirus would
continue for a certain period of time, and the individual category of borrowers was determined based on the available information after taking into
account the characteristics of the industrial sector, the possibility of recovery from the short-term business performance, cash flow status, etc.
Accordingly, an additional reserve was not provided.
(c) The impact on the consolidated financial statements for the next fiscal year
The uncertainties of the material estimates are included in the major assumptions used for the calculation of the amount of the reserve for possible
loan losses, including the expected loss rate by region and by debt classification, the category of borrowers as of the end of the current fiscal year, theamount expected to be recovered using collateral and guarantees, the impact of the new coronavirus and inflation, etc.
The major assumptions concerning the estimate of the reserve for possible loan losses are determined based on the available information.
However, if the business condition of a major customer worsens or the impact of the new coronavirus and inflation is prolonged, there is a possibility
that such events would have an impact on the operating results and financial position for the next fiscal year, such as an increase in the reserve forpossible loan losses becoming necessary.

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4. CHANGES IN ACCOUNTING POLICIESFiscal year ended March 31, 2023
Application of implementation guidance on accounting standard for fair value measurement
The Group has applied the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, June 17, 2021)
from the beginning of the fiscal year ended March 31, 2023 and will prospectively apply the new accounting policies stipulated by the Implementation
Guidance on Accounting Standard for Fair Value Measurement in accordance with the transitional treatment prescribed in Paragraph 27-2 of theguidance. There was no effect on the consolidated financial statements due to this application.
As for notes of investment trusts in financial instruments categorized by fair value hierarchy in Note 25, “FINANCIAL INSTRUMENTS AND
RELATED DISCLOSURES,” the comparative information for the fiscal year ended March 31, 2022 is not included in the said Note in accordance with
Paragraph 27-3 of the guidance.
Fiscal year ended March 31, 2022
(1) Application of accounting standard for revenue recognition
The Group has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) from the beginning of the fiscal
year ended March 31, 2022 and recognizes revenue when control of promised goods or services is transferred to the customer in an amount thatreflects the consideration to which it expects to be entitled in exchange for those goods or services.
The Group applied the Accounting Standard for Revenue Recognition in accordance with the transitional treatment prescribed in Paragraph 84
of the standard, and there was no effect on retained earnings at the beginning of the fiscal year ended March 31, 2022.
Any effects on the consolidated financial statements were immaterial.
(2) Application of accounting standard for fair value measurement
The Group has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019) from the beginning of the
fiscal year ended March 31, 2022 and will prospectively apply the new accounting policies stipulated by the Accounting Standard for Fair Value
Measurement in accordance with the transitional treatment prescribed in Paragraph 19 of the standard and Paragraph 44-2 of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
The effects on the consolidated financial statements were immaterial.
In addition, the Group discloses financial instruments categorized by fair value hierarchy in Note 25, “FINANCIAL INSTRUMENTS AND RELATEDDISCLOSURES.”(3) Change in criteria for recognizing income from installment sales transactions
The Bank’s consolidated subsidiary, Nanto Lease Co., Ltd., has adopted a method of recording income from installment sales transactions in theamount equivalent to interest expense in accordance with the “Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16,
March 25, 2011).
The amount equivalent to interest expense was previously accounted for by the straight-line method, but this has been changed to the interest
method effective from the fiscal year ended March 31, 2022. This change was made based on the judgment that adopting the interest method, whichis the principle method, will more appropriately reflect the status of profit and loss, given the increasing trend of installment sales transactions.
This change in accounting policy has been applied retrospectively.

5. STANDARDS AND GUIDANCE NOT YET ADOPTED
The following standards and guidance were issued but not yet adopted.
• “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022)• “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25, October 28, 2022)• “Implementation Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022)(1) Overview
These standards and guidance set forth the accounting classification of current income taxes in the case where other comprehensive income istaxable, as well as the treatment of tax effect accounting on sale of shares of subsidiaries, etc. under the group taxation regime.
(2) Effective date
The Group is scheduled to apply the standards and guidance from the beginning of the fiscal year ending March 31, 2025.
(3) Effects of the application of the standards and guidance
The Group is currently evaluating the effects of the application of these standards and guidance.

6. ADDITIONAL INFORMATION
Director Remuneration BIP (Board Incentive Plan) Trust
The Bank has introduced a Director Remuneration BIP Trust for directors of the Bank (excluding outside directors and nonresidents in Japan;
hereinafter “the Bank’s directors”).
(1) Overview of transaction
The Director Remuneration BIP Trust is a board incentive plan designed to motivate the Bank’s directors to contribute to achieving mid- to longterm performance improvement and increasing corporate value. This is a stock-based compensation plan in which points are awarded to the Bank’s
directors based on their position and achievement of performance targets, etc. The Bank’s shares corresponding to the points and a cash payment
equivalent to the value of the Bank’s shares are delivered or paid to the Bank’s directors at the time of their retirement from office.
(2) Accounting treatment for transactions in which the Bank’s shares are delivered through the Trust
The Bank has followed the “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees, etc., through Trusts” (Practical
Issues Task Force No. 30, March 26, 2015) with respect to the accounting treatment of this trust agreement.
(3) Matters on Bank’s shares held by the Trust(a) The book value of the Bank’s shares held by the Trust as of March 31, 2023 and 2022 was ¥143 million ($1,070 thousand) and ¥143 million,
respectively.
(b) The Bank’s shares held by the Trust are recorded as treasury stock under stockholders’ equity.
(c) The numbers of shares as of March 31, 2023 and 2022 were 73 thousand and 73 thousand, respectively, and the average numbers of shares
during the fiscal years ended March 31, 2023 and 2022 were 73 thousand and 47 thousand, respectively.

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Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements(d) The numbers of shares at the end of the fiscal years ended March 31, 2023 and 2022 and the average numbers of shares during the respective
fiscal years are included in treasury stock to be deducted for computing per share information.

7. CHANGES IN NET ASSETS(1) Type and numbers of shares issued and treasury stock for the fiscal years ended March 31, 2023 and 2022
(Thousands of shares)

April 1, 2022
Shares issued
Common stock .....................................
Total ..................................................
Treasury stock
Common stock .....................................
Total ..................................................

2023
Decrease

Increase

Remarks

March 31, 2023

33,02533,025————33,02533,025

472
472

801
801

0
0

1,273
1,273

Notes 1, 2 & 3

Notes: 1. The number of shares of treasury stock as of March 31, 2023 includes 73 thousand shares of the Bank’s stock held by the Director Remuneration BIP Trust.
2. The increase of 801 thousand shares in common stock of treasury stock is attributable to an increase of 800 thousand shares due to the acquisition of treasury stock, which was resolved by
the Board of Directors, and an increase of 1 thousand shares due to the purchase of shares of less than one unit.
3. The decrease of 0 thousand shares in common stock of treasury stock is due to the sale of shares less than one unit.

(Thousands of shares)

April 1, 2021
Shares issued
Common stock .....................................
Total ..................................................
Treasury stock
Common stock .....................................
Total ..................................................

2022
Decrease

Increase

Remarks

March 31, 2022

33,02533,025————33,02533,025

407
407

74
74

9
9

472
472

Notes 1, 2 & 3

Notes: 1. The number of shares of treasury stock as of March 31, 2022 includes 73 thousand shares of the Bank’s stock held by the Director Remuneration BIP Trust.
2. The increase of 74 thousand shares in common stock of treasury stock is attributable to an increase of 73 thousand shares due to the acquisition by the Director Remuneration BIP Trust andan increase of 1 thousand shares due to the purchase of shares of less than one unit.
3. The decrease of 9 thousand shares in common stock of treasury stock is attributable to a decrease of 9 thousand shares due to the execution of stock options and a decrease of 0 thousand
shares due to the sale of shares of less than one unit.

(2) Stock acquisition rights
Fiscal years ended March 31, 2023 and 2022
Not applicable.
(3) Information on dividends is as follows:(a) Dividends paid in the fiscal year ended March 31, 2023
Millions of yen (thousands of U.S. dollars), except per share amount (yen (U.S. dollars))
Resolution

Annual stockholders’ meeting held on
June 29, 2022
Board of Directors’ meeting held on
November 11, 2022

Type of shares

Aggregate amount ofdividends

Cash dividends per
share

Record dateCommon stock¥2,283 ($ 17,097)¥70.00 ($ 0.52)

March 31, 2022

June 30, 2022

Common stock¥1,273 ($ 9,533)¥40.00 ($ 0.29)

September 30,
2022

December 5, 2022

Effective dateNotes: 1. Aggregate amount of dividends resolved by the Annual stockholders’ meeting on June 29, 2022 includes dividends for the Bank’s shares held by the Director Remuneration BIP Trust of ¥5
million ($37 thousand).
2. Aggregate amount of dividends resolved by the Board of Directors on November 11, 2022 includes dividends for the Bank’s shares held by the Director Remuneration BIP Trust of ¥2 million ($14thousand).

(b) Dividends paid in the fiscal year ended March 31, 2022
Millions of yen, except per share amount (yen)Resolution

Annual stockholders’ meeting held on
June 29, 2021
Board of Directors’ meeting held on
November 12, 2021

Type of shares

Aggregate amount ofdividends

Cash dividends per
share

Common stock¥1,304¥40.00March 31, 2021

June 30, 2021

Common stock¥1,305¥40.00

September 30,
2021

December 6, 2021

Record date

Effective date(c) Dividends to be paid in the fiscal year ending March 31, 2024
Millions of yen (thousands of U.S. dollars), except per share amount (yen (U.S. dollars))
Resolution

Annual stockholders’ meeting held on
June 29, 2023

Aggregate amount ofdividends

Source ofdividends

Cash dividends per
share

Common stock ¥2,323 ($17,396)

Retainedearnings¥73.00 ($0.54) March 31, 2023 June 30, 2023

Type of shares

Record date

Effective date

Note: Aggregate amount of dividends includes dividends for the Bank’s shares held by the Director Remuneration BIP Trust of ¥5 million ($37 thousand).

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8. STOCKHOLDERS’ EQUITY
Under the Banking Law of Japan and the Company Law, the entire amount of the issue price of shares is required to be accounted for as capital,
although the Bank may, by resolution of its Board of Directors, account for an amount not exceeding one half of the issue price of the new shares asadditional paid-in capital, which is included in capital surplus.
The Banking Law provides that an amount equal to at least 20% of cash dividends and other cash appropriations be appropriated and set
aside as legal earnings reserve until the total amount of legal earnings reserve and additional paid-in capital equals 100% of common stock. The total
amount of legal earnings reserve and additional paid-in capital of the Bank has reached 100% of common stock. Therefore, the Bank is not required
to provide additional legal earnings reserve.
The legal earnings reserve and additional paid-in capital may be used to eliminate or reduce a deficit by resolution of the stockholders’ meetingor may be capitalized by resolution of the Board of Directors. On condition that the total amount of legal earnings reserve and additional paid-in capitalremains equal to or more than 100% of common stock, they are available for distribution by resolution of the stockholders’ meeting. Legal earnings
reserve is included in retained earnings in the accompanying financial statements.
The maximum amount that the Bank can distribute as dividends is calculated based on the nonconsolidated financial statements of the Bank inaccordance with the Company Law.

9. SHARES OR INVESTMENTS IN CAPITAL OF UNCONSOLIDATED SUBSIDIARIES AND AFFILIATES
Shares or investments in capital of unconsolidated subsidiaries and affiliates at March 31, 2023 and 2022 were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Shares or investments in capital ................................................................................

¥

2022

4,032

¥

2,979

2023

$

30,195

10. NONPERFORMING CLAIMSThe Bank reported claims based on the Banking Act and the Act on Emergency Measures for the Revitalization of the Financial Functions at March
31, 2023 and 2022. The claims consisted of those recorded in the consolidated balance sheets as corporate bonds in “Securities” (limited to thosefor which redemption of the principal and payment of interest are guaranteed in whole or in part and are issued by private placement of securities
in accordance with Article 2, Paragraph 3 of the Financial Instruments and Exchange Act), loans and bills discounted, foreign exchanges, accrued
interest and suspense payments in “Other assets”, customers’ liabilities for acceptances and guarantees, and securities in lending securities
transactions indicated in the Notes (limited to those under loan for use or lease contracts).
Thousands of
U.S. dollars

Millions of yen

2023

Bankrupt or quasi-bankrupt claims ...........................................................................
Doubtful claims .........................................................................................................
Claims past due for three months or more ................................................................
Restructured claims ..................................................................................................
Total ......................................................................................................................

¥

¥

3,665
46,239131
8,997
59,034

2022

¥

¥

3,592
42,510161
7,226
53,491

2022$$

27,447346,281981
67,378442,102

Bankrupt or quasi-bankrupt claims are claims made against obligors who have fallen into bankruptcy for reasons such as the commencement ofbankruptcy proceedings or reorganization proceedings, or the petition for commencement of rehabilitation proceedings, and claims similar to these.
Doubtful claims are claims that are made against obligors who are yet to have fallen into bankruptcy, but it is highly probable that the contractual
principal and interest cannot be collected/received due to deterioration of the obligor’s financial condition and business performance and those notclassified as bankrupt or quasi-bankrupt claims.
Claims past due for three months or more represent claims for which payments of principal or interest have been in arrears for three months or morefrom the day following the agreed-upon payment date, but do not meet the criteria for bankrupt, quasi-bankrupt claims or doubtful claims.
Restructured claims are claims that provide certain concession favorable to the obligors with the intent of facilitating the obligor’s restructuring orotherwise providing support, such as by reducing or exempting interest, postponing principal/interest payments, releasing credits, or providing otherbenefits and those that are not classified in any of the above categories.
The amounts of claims in the above table are before deduction of reserve for possible loan losses.
(Changes in presentation)“Cabinet Office Ordinance Partially Revising the Ordinance for Enforcement of the Banking Act” (Cabinet Office Ordinance No. 3, January 24, 2020)
became effective on March 31, 2022. Accordingly, the classification of “Risk management claims,” etc., under the Banking Act are presented inaccordance with the classification of claims requiring disclosure based on the Act on Emergency Measures for the Revitalization of Financial Functions
and other requirements.
Bills discounted are accounted for as financing transactions in accordance with “Treatment for Accounting and Auditing of Application of AccountingStandard for Financial Instruments in the Banking Industry” (JICPA Industry Committee Report No. 24, March 17, 2022). This accounting treatment gives
the Bank the right to sell or pledge such bills without restrictions. The total face value of commercial bills and purchased foreign exchange bills obtained asa result of discounting was ¥13,371 million ($100,134 thousand) and ¥14,169 million at March 31, 2023 and 2022, respectively.
Regarding loan participation and based on the “Accounting Treatment and Presentation of Loan Participation” (JICPA Accounting System Committee
Report No. 3, November 28, 2014), of the participating principal amount accounted for as loans and bills discounted with respect to the original debtor,
the amount recorded in the consolidated balance sheets was ¥3,601 million ($26,967 thousand) and ¥3,602 million at March 31, 2023 and 2022,
respectively.

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11. PLEDGED ASSETS
Assets pledged as collateral at March 31, 2023 and 2022 were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Assets pledged as collateral:
Securities ..............................................................................................................
Loans and bills discounted....................................................................................
Other assets .........................................................................................................
Liabilities corresponding to assets pledged as collateral:
Deposits ...............................................................................................................
Payables under repurchase agreements ...............................................................
Payables under securities lending transactions .....................................................
Borrowed money ..................................................................................................

¥

2022

440,547
141,347
178

¥

2023

555,826
387,045
178$

107,874
12,742
102,432
700,899

79,537—
139,161
346,534

3,299,236
1,058,541
1,333
595,648—
1,042,170
2,595,177

In addition to the above, the following were pledged as collateral for transaction guarantees or as a substitute for margin money for forward
transactions.
Thousands of
U.S. dollars

Millions of yen

2023

Other assets .............................................................................................................

¥

2022

26,219¥2023

21,514$

196,352

The following was pledged as collateral for borrowed money of ¥2,109 million ($15,794 thousand) and ¥2,173 million at March 31, 2023 and 2022,
respectively.
Thousands of
U.S. dollars

Millions of yen

2023

Unexpired lease contract claims ...............................................................................

¥

2022

2,978

¥

2023

3,085

$

22,302Other assets included initial margins of futures markets and security deposits and other intangible fixed assets included key money as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Initial margins of future markets.................................................................................
Security deposits ......................................................................................................
Key money ...............................................................................................................

¥

2022

892
960
446

¥

2023

762
977
447

$

6,680
7,189
3,340

12. LOAN COMMITMENTS
Commitment line contracts on overdrafts and loans are agreements to lend to customers when they apply for borrowing up to a prescribed amountas long as there is no violation of any condition established in the contract. The amounts of unused commitments at March 31, 2023 and 2022 were
¥1,006,735 million ($7,539,391 thousand) and ¥1,027,166 million, respectively, and the amount of unused commitments whose original contract
terms were within one year or unconditionally cancelable at any time at March 31, 2023 and 2022 were ¥938,055 million ($7,025,050 thousand) and¥951,310 million, respectively.
Since many of these commitment line contracts are expected to expire without being drawn upon, the total amount of unused commitments
does not necessarily affect actual future cash flow.
Many of these commitments line contracts have clauses that allow the Group to reject the application from customers or reduce the contract
amounts if economic conditions change. In addition, the Group may request that customers pledge collateral such as real estate and securities or takeother necessary measures such as scrutinizing customers’ financial positions and revising contracts when the need to secure claims arises.

13. TANGIBLE FIXED ASSETS
Accumulated depreciation of tangible fixed assets was ¥43,802 million ($328,031 thousand) and ¥44,248 million at March 31, 2023 and 2022,
respectively. Accumulated capital gains directly offset against the acquisition cost of tangible fixed assets to obtain tax benefits were ¥805 million ($6,028
thousand) and ¥806 million at March 31, 2023 and 2022, respectively. For the fiscal years ended March 31, 2023 and 2022, the capital gain offset
from acquisition costs was nil.

14. GUARANTEESThe amount guaranteed by the Bank for privately placed bonds (stipulated by Article 2, Paragraph 3 of the Financial Instruments Exchange Act)
included in “Bonds” of “Securities” was ¥42,633 million ($319,276 thousand) and ¥43,674 million at March 31, 2023 and 2022, respectively.

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15. REVENUE(1) Revenue from contracts with customers
Ordinary income is not disclosed by disaggregating revenue from contracts with customers and other sources of revenue.
Revenue from contracts with customers on a disaggregated basis for the fiscal years ended March 31, 2023 and 2022 was as follows:
Millions of yen

2023
Reportable segments
Banking

Fees and commissions .................................................................... ¥Deposit and loan services ............................................................
Exchange services .......................................................................
Trust related services ...................................................................
Securities related services ............................................................
Agency services...........................................................................
Custody and safe deposit box services ........................................
Guarantee services ......................................................................
Other ...........................................................................................
Ordinary income from contracts with customers .............................. ¥Ordinary income other than the above .............................................
Ordinary income from outside customers......................................... ¥

8,912
1,887
2,170
134
—
2,943
226
—
1,549
8,912
56,09765,009

Leasing

¥

¥
¥

Other

—
—
—
—
—
—
—
—
—
—
9,308
9,308

¥

1,996
—
—
—
280
—
—
—
1,715
1,996
1,434
3,430

¥
¥

Total

¥

¥
¥

10,908
1,887
2,170
134
280
2,943
226
—
3,265
10,90866,83977,748Millions of yen

2022
Reportable segments
Banking

Fees and commissions .................................................................... ¥Deposit and loan services ............................................................
Exchange services .......................................................................
Trust related services ...................................................................
Securities related services ............................................................
Agency services...........................................................................
Custody and safe deposit box services ........................................
Guarantee services ......................................................................
Other ...........................................................................................
Ordinary income from contracts with customers .............................. ¥Ordinary income other than the above .............................................
Ordinary income from outside customers......................................... ¥

9,137
1,890
2,349
108
—
2,996
233
—
1,559
9,137
56,34665,483

Leasing

¥

¥
¥

Other

—
—
—
—
—
—
—
—
—
—
8,803
8,803

¥

1,676
—
—
—
283
—
—
—
1,392
1,676
1,568
3,244

¥
¥

Total

¥

¥
¥

10,813
1,890
2,349
108
283
2,996
233
—
2,951
10,81366,71877,531Thousands of U.S. dollars

2023
Reportable segments
Banking

Fees and commissions .................................................................... $Deposit and loan services ............................................................
Exchange services .......................................................................
Trust related services ...................................................................
Securities related services ............................................................
Agency services...........................................................................
Custody and safe deposit box services ........................................
Guarantee services ......................................................................
Other ...........................................................................................
Ordinary income from contracts with customers .............................. $Ordinary income other than the above .............................................
Ordinary income from outside customers......................................... $66,741
14,131
16,251
1,003—
22,0391,692—
11,60066,741
420,107486,849

Leasing

$

$
$

—
—
—
—
—
—
—
—
—
—
69,707
69,707

Other

$

$
$

14,947
—
—
—
2,096
—
—
—
12,843
14,947
10,73925,687

Total

$

$
$

81,68914,131
16,251
1,003
2,096
22,0391,692—
24,451
81,689500,554582,251

Note: “Other” is business segments which are not included in the reportable segments and include the following services: credit guarantees, real estate leasing and management, software development,
credit cards and securities.

(2) Receivables from contracts with customers
Receivables from contracts with customers of ¥492 million ($3,684 thousand) and ¥476 million as of March 31, 2023 and 2022, respectively, wasincluded in other assets.

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Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

16. OTHER OPERATING INCOME
For the fiscal years ended March 31, 2023 and 2022, other operating income consisted of the following:Thousands of
U.S. dollars

Millions of yen

2023

Gains on sales of bonds ...........................................................................................
Gain on foreign exchange transactions .....................................................................
Other ........................................................................................................................
Total ......................................................................................................................

¥

2022

1,989
1,936
342
4,268

¥

¥

1,928
1,037
459
3,425

¥

2023

$

$

14,895
14,4982,561
31,962

17. OTHER INCOME
For the fiscal years ended March 31, 2023 and 2022, other income consisted of the following:Thousands of
U.S. dollars

Millions of yen

2023

Gains on sales of stocks and other securities............................................................
Recovery of written-off claims ...................................................................................
Other ........................................................................................................................
Total ......................................................................................................................

¥

2022

1,129
405
1,508
3,043

¥

¥

2,578
319
852
3,750

¥

2023

$

$

8,455
3,033
11,29322,788

18. OTHER OPERATING EXPENSES
For the fiscal years ended March 31, 2023 and 2022, other operating expenses consisted of the following:Thousands of
U.S. dollars

Millions of yen

2023

Losses on sales of bonds .........................................................................................
Other ........................................................................................................................
Total ......................................................................................................................

¥

2022

10,873
2,041
12,914

¥

¥

2,415
2
2,418

¥

2023

$
$

81,427
15,28496,712

19. GENERAL AND ADMINISTRATIVE EXPENSES
For the fiscal years ended March 31, 2023 and 2022, general and administrative expenses consisted of the following:Thousands of
U.S. dollars

Millions of yen

2023

Salaries and allowances ............................................................................................
Retirement benefit costs ...........................................................................................
Other ........................................................................................................................
Total ......................................................................................................................

¥

2022

18,947
1,523
19,01039,481¥¥

19,076
1,563
19,59440,234

¥

2023

$

$

141,893
11,405
142,365
295,671

20. OTHER EXPENSES
For the fiscal years ended March 31, 2023 and 2022, other expenses consisted of the following:Thousands of
U.S. dollars

Millions of yen

2023

Write-offs of loans .....................................................................................................
Provision for possible loan losses ..............................................................................
Losses on sales of stocks and other securities .........................................................
Other ........................................................................................................................
Total ......................................................................................................................

¥

¥

718
1,117
65
581
2,483

2022

¥

¥

1,194
1,157
687
802
3,840

2023

$

$

5,377
8,365
486
4,351
18,595

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Financial Data

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Consolidated Financial Statements
21. IMPAIRMENT LOSSThe Group reports impairment loss for the following asset groups.
Fiscal year ended March 31, 2023
Thousands of
U.S. dollars

Millions of yen

RegionNara Prefecture - outside
Nara Prefecture - inside
Nara Prefecture - outside
Nara Prefecture - inside

Principle use

1 business store, etc.
1 idle asset
1 idle asset
1 business store, etc.
Total

Type

Impairment loss

Buildings, etc.
Buildings, etc.
Buildings, etc.
Software

¥

¥

7
26
6
2
43

$

$

52
194
44
14
322

Regarding the fixed assets above, due to the decline in operating cash flows and the reorganization of the store network, the Bank reduced thecarrying amount to the recoverable amount and reported the decrease as an impairment loss of ¥43 million ($322 thousand) in other expenses.
The Bank uses the grouping method of area and business store units because it continuously determines income and expenditure for each areaand for each business store. For idle assets, the grouping is carried out using each asset as the unit. Furthermore, the Headquarters, Administrative
Center, Training Center, etc., are assets that contribute to the generation of the future cash flows of multiple assets and asset groups, so they are
deemed to be corporate assets. Each subsidiary uses the grouping with each respective company as the unit.
The recoverable amount of impaired assets was measured at the net selling price or value in use, whichever was higher. Net selling prices were
calculated based on Real Estate Appraisal Standards, etc., and the value in use was computed by discounting future cash flows at 0.7% to 1.4%.
Fiscal year ended March 31, 2022
Millions of yen

RegionNara Prefecture - inside
Nara Prefecture - inside
Nara Prefecture - outside

Principle use

3 business stores, etc.
1 idle asset
1 business store, etc.
Total

Type

Impairment loss

Buildings, etc.
Land
Buildings, etc.

¥

¥

34
11
16
62

Regarding the fixed assets above, due to the decline in operating cash flows and the reorganization of the store network, the Bank reduced thecarrying amount to the recoverable amount and reported the decrease as an impairment loss of ¥62 million in other expenses.
The Bank uses the grouping method of area and business store units because it continuously determines income and expenditure for each areaand for each business store. For idle assets, the grouping is carried out using each asset as the unit. Furthermore, the Headquarters, Administrative
Center, Training Center, etc., are assets that contribute to the generation of the future cash flows of multiple assets and asset groups, so they are
deemed to be corporate assets. Each subsidiary uses the grouping with each respective company as the unit.
The recoverable amount of impaired assets was measured at the net selling price or value in use, whichever was higher. Net selling prices were
calculated based on Real Estate Appraisal Standards, etc., and the value in use was computed by discounting future cash flows at 1.0% to 1.1%.

22. OTHER COMPREHENSIVE INCOME (LOSS)
The components of other comprehensive income (loss) for the fiscal years ended March 31, 2023 and 2022 were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Valuation difference on available-for-sale securities:
Gains (losses) incurred during the year ..................................................................
Reclassification adjustments to net income ...........................................................
Amount before tax effect ...................................................................................
Tax effect ..........................................................................................................
Valuation difference on available-for-sale securities ................................................
Deferred gains (losses) on hedges
Gains (losses) incurred during the year ..................................................................
Reclassification adjustments to net income ...........................................................
Amount before tax effect ...................................................................................
Tax effect ..........................................................................................................
Deferred gains (losses) on hedges.........................................................................
Adjustments for retirement benefits:
Gains (losses) incurred during the year ..................................................................
Reclassification adjustments to net income ...........................................................
Amount before tax effect ...................................................................................
Tax effect ..........................................................................................................
Adjustments for retirement benefits .......................................................................
Total other comprehensive income (loss) ...............................................................

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76 Nanto
76¥¥(40,703)
9,727(30,976)
9,316(21,659)

2022

¥

2023

(22,457)(411)(22,868)
6,769(16,099)$(304,822)
72,845(231,977)
69,767(162,203)(2,379)(90)(2,470)751(1,719)

(448)
169
(278)
84
(193)

(17,816)(674)(18,497)5,624(12,873)

1
211
212
(64)
147
(23,231)

(14)
218
204
(62)
142
(16,151)

7
1,580
1,587
(479)
1,100
(173,975)¥$

About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

23. STATEMENTS OF CASH FLOWS
The reconciliation between cash and due from banks in the consolidated balance sheets at March 31, 2023 and 2022 and cash and cash equivalentsin the consolidated statements of cash flows for the fiscal years then ended was as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Cash and due from banks on the consolidated balance sheets.................................
Current deposits due from banks ..............................................................................
Time deposits due from banks ..................................................................................
Other due from banks ...............................................................................................
Cash and cash equivalents on the consolidated statements of cash flows ................

¥

¥

2022

1,085,005
(41)
(600)
(1,204)
1,083,159¥

2023

1,495,598
(80)
(600)
(1,081)
1,493,835¥$$

8,125,552(307)(4,493)(9,016)8,111,727

24. LEASE TRANSACTIONS
Operating leases
As lessee:
Future minimum lease payments under operating leases which were not cancelable at March 31, 2023 and 2022 were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Due within one year ..................................................................................................
Due after one year ....................................................................................................
Total ......................................................................................................................

¥

2022

197
489
686

¥

¥

2023

211
793
1,004

¥

$
$

1,475
3,662
5,137

As lessor:
Future minimum lease payments under operating leases which were not cancelable at March 31, 2023 and 2022 were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Due within one year ..................................................................................................
Due after one year ....................................................................................................
Total ......................................................................................................................

¥
¥

2022

7
24
31

¥
¥

2023

—
—
—

$
$

52
179
232

25. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESa. Status of financial instruments(1) Policy on financial instruments
The Group is composed of the Bank, its eleven (eleven in 2022) consolidated subsidiaries and its three (two in 2022) affiliates accounted for by theequity method and provides financial services such as banking, securities, leasing and credit guarantee services.
The Group’s major banking business includes (i) the acceptance of deposits, lending services, bills discounting and remittance, and (ii) theguarantee of debt, acceptance of bills and other services related to the banking business. The securities business includes underwriting and dealing
in securities, over-the-counter derivative transactions and other related services, including security index future transactions in accordance with the
Financial Instruments and Exchange Act.
The Bank, in addition to being a money lender and borrower in the interbank market to adjust its surpluses and deficits of funds, raises funds byborrowed money and bonds with consideration for the financial market conditions and the balance of length.
The Bank conducts asset and liability management (ALM), identifying various types of risk exposures associated with the banking business as
the Bank holds financial assets and liabilities exposed to the market risk associated with fluctuation in interest rates. As part of its risk management,
the Bank utilizes derivative transactions such as interest rate swaps. The Bank also enters into derivative transactions for trading purposes with certain
position limits.
(2) Contents and risk of financial instruments
Financial assets held by the Group are composed mainly of loans to corporate and individual customers that are exposed to credit risk arising from
customer nonperformance. In addition, loan balances are significantly concentrated in Nara prefecture, where the head office of the Bank is located.
Accordingly, changes in the economic circumstances of the region could have a great impact on the credit risk.
Securities consist principally of Japanese government bonds, Japanese local government bonds, equity securities, foreign securities, investment
trusts that are classified as other securities (available-for-sale), private bonds guaranteed by the Bank that are classified as held-to-maturity debt
securities and Japanese government bonds classified as trading purpose securities. These securities are exposed to the credit risk of issuers and themarket risk of fluctuation in interest rates and market prices. Since financial assets denominated in foreign currencies are exposed to exchange raterisk, currency related derivative transactions are used to balance the amount of funding and amount of operations for each currency to reduce the risk.
In the banking business, financial liabilities consist principally of deposits from retail clients in Japan and are exposed to interest rate risk. In
addition, foreign currency deposits are exposed to exchange rate risk. With respect to borrowed money, the Group may be forced to raise funds underunfavorable conditions and, accordingly, become significantly exposed to liquidity risk if the fund raising capacity of the Group significantly declined
and led to the inability to repay under circumstances such as the significant deterioration of the financial position of the Group. Furthermore, borrowed
money with floating interest rates is exposed to interest rate risk.
Derivative transactions include interest rate swaps for interest rate related transactions, currency swaps and forward foreign exchangetransactions for currency related transactions, and bond future transactions and bond option transactions for bond related transactions. The Bankutilizes those derivative transactions in order to hedge the position of the customers as well as to capture various risks associated with transactions
with customers and control those risks properly. The Bank also uses derivatives for trading purposes with certain position limits. Interest rate swaps
are used as hedging instruments to avoid interest rate risks of hedged items such as loans and deposits with fixed interest rates. Deferred hedge
accounting has been applied to derivatives used as hedging instruments.

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The Bank assesses the effectiveness of hedges in offsetting movement in the fair value from changes in interest rates by classifying the hedged
items such as deposits and loans and the hedging instruments such as interest rate swaps by their maturity. For cash flow hedges, the Bank assesses
the effectiveness by verifying the correlation between the hedged items and the interest rate components of hedging instruments. Transactions which
do not meet the requirements of hedge accounting and derivative transactions for trading purposes are exposed to interest rate risk, foreign currency
risk, price fluctuation risk and credit risk.
(3) Risk management system for financial instruments
Credit risk management
The Group has established a framework for credit control which includes credit reviews for individual transactions, credit limits, credit information
management, internal credit ratings, guarantees and collateral and self-assessment in accordance with the Group’s “Rules on Credit Risk
Management” and “Rules on Self-Assessment of Assets.” These credit controls are performed by each branch and the Examination Department. The
Audit Department, which is independent from the said branches and department, audits the status of credit risk controls and its results. The status ofcredit risk controls is periodically evaluated and reported to the Management Meeting and the Board of Directors.
Credit risks associated with the issuers of securities are managed by the Market Operations Department and Risk Management Division. With
respect to the credit risks associated with the issuer of the securities and counterparty risk associated with derivative transactions, related credit
information and fair values of the securities are periodically checked to monitor those risks.
Market risk management(a) Interest rate risk
From the perspective of ALM, the Group manages market risk such as interest rate risk associated with assets and liabilities, including loans, deposits
and securities comprehensively. The Group’s “Rules on Market Risk Management” stipulates that the Bank makes efforts to manage the market sector
effectively, taking risk and reward into account as well as avoiding excessive risk taking by setting appropriate risk limits based on the Group’s ability totake risk and identifying market risk properly.
The ALM Committee, the decision making entity for the management of market risks, sets certain semiannual risk limits determined by VaR based
upon the Bank’s capital adequacy and market conditions. The Bank pursues profit opportunities within the risk limits. The Risk Management Divisionassesses interest rate risk by VaR, reports to the ALM Committee on a monthly basis and properly monitors its operations.
In addition to the VaR methodology, it utilizes a combination of the BPV (basis point value) methodology, simulations of interest rate fluctuations,and EVE (the decrease in economic value with respect to an interest rate shock), etc., to identify and analyze risk from a broader point of view.
(b) Foreign currency risk
With regard to foreign currency risk associated with operations and procurement of financial instruments denominated in foreign currency, theGroup manages risk by balancing the amount of funding and amount of operations for each currency. In addition, as for foreign currency exchangetransactions for investment purposes, the Risk Management Division assesses the foreign currency risk by VaR, reports to the ALM committee on amonthly basis and properly monitors its operations.
(c) Price fluctuation risk
With regard to investments in securities, the Group prepares its asset management plan semiannually and makes investment decisions at the ALM
Committee based upon expected returns and correlations between investment items and related market fluctuation risk. The Market Operations
Department plays a part in investments for investment purposes, and the Corporate Solutions Department plays a part in investments for the purposeof business alliances and capital affiliation. Continuous monitoring of market conditions and restrictions on investments in riskier assets such as
securitized instruments help to avoid unnecessary price fluctuation risk.
The Risk Management Division assesses the price fluctuation risk of equity securities, etc., by VaR, reports monthly to the ALM Committee aboutcompliance with risk limits and properly manages the risk.
(d) Derivative transactions
With respect to derivative transactions for hedging purposes, the Group establishes internal rules defining the authority and hedge policies which
are governed by the Risk Management Division. With respect to derivative transactions for trading purposes, certain trading limits and loss limit rules
are set semiannually by the ALM Committee. The Risk Management Division, which serves as the middle office, monitors compliance and calculates
the total amount of risk. The Market Operations Department, which serves as the back office, checks each derivative transaction, marked-to-market
position, and evaluates the profit and loss from the transactions on a daily basis. In addition to those functions, the related divisions check each otherso as not to exceed limits on loss.
The directors of the Bank are reported to from both the middle office and the back office and monitor the risks associated with the Bank’s
portfolio as a whole, including loans, deposits and securities at the ALM Committee.
(e) Quantitative information relating to market risk
The Group manages the quantity of market risk for financial instruments such as loans, deposits, securities and derivatives by VaR. To calculate VaR,
the Group has adopted the historical method (confidence level of 99%, observation period of 1,250 business days, holding period of 120 businessdays [holding period for equity securities other than purely for investment purposes are 240 business days] and the correlation of risk categories are
not considered.).
At March 31, 2023, the Group’s total market risk (decrease in estimated economic value) was ¥45,514 million ($340,852 thousand) (¥56,464
million in 2022). In addition, the Group conducted back tests comparing actual profit or loss with the VaR calculated by the model. However, VaR is astatistical measure of market risk based on past fluctuations in the market and certain probability of occurrence. It may not be possible to capture therisk if the market fluctuates rapidly under extraordinary circumstances.

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About Nanto Bank

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Developing Human
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Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

Management of liquidity risk associated with financing activities
The Market Operations Department manages the Bank’s cash position based upon the monthly funding plan designed by the ALM Committee, while
the Risk Management Division monitors the situation. The ALM Committee manages financing risk comprehensively by understanding the amount ofcash for which the Bank can liquidate and also can raise from the market on a regular basis.
In addition, the Group categorizes its financing situation into “Regular Phase,” “Concern Phase” and “Crisis Phase” and prepares appropriate
management structures for each phase so that the Group can take proper action accordingly.
(4) Supplementary explanation on the fair value of financial instruments
Certain assumptions are used in measuring the fair value of financial instruments. Accordingly, the result of these fair value measurements may vary if
different assumptions are used.
b. Fair value of financial instruments
The table below summarizes the carrying amounts, fair values and differences for financial instruments as of March 31, 2023 and 2022. Equity
securities, etc., with no market price and investments in partnerships are not included in the following table (see Note 1 below).
Cash and due from banks, debt purchased, foreign exchange in assets and negotiable certificates of deposit, call money and bills sold, payables
under repurchase agreements, payables under securities lending transactions and foreign exchange in liabilities, whose fair value approximatescarrying amount, and because they are settled within a short term, are also omitted. In addition, immaterial financial instruments are omitted.
Millions of yen

2023
Carrying amountMoney held in trust (*1) ........................................................................................
Securities (*1)
Held-to-maturity debt securities .......................................................................
Available-for-sale securities ..............................................................................
Loans and bills discounted ..................................................................................
Reserve for possible loan losses (*2) ................................................................

¥

Total assets .........................................................................................................
Deposits ..............................................................................................................
Borrowed money .................................................................................................
Total liabilities .......................................................................................................
Derivative transactions (*3)
Hedge accounting not applied .........................................................................
Hedge accounting applied (*4) .........................................................................
Total derivative transactions .................................................................................

¥
¥
¥
¥
¥

43,57942,633
1,256,882
3,944,387(23,043)
3,921,344
5,264,439
5,715,665
356,490
6,072,156
3,285
204
3,490

Fair value¥

43,579Difference¥

42,471
1,256,882

¥
¥
¥
¥
¥

3,909,715
5,252,648
5,715,670
356,458
6,072,128
3,285
204
3,490

—
(162)
—

¥
¥
¥
¥
¥

(11,628)(11,791)
4
(32)
(27)
—
—
—

Millions of yen

2022
Carrying amountMoney held in trust ..............................................................................................
Securities
Held-to-maturity debt securities .......................................................................
Available-for-sale securities ..............................................................................
Loans and bills discounted ..................................................................................
Reserve for possible loan losses (*2) ................................................................

¥

Total assets .........................................................................................................
Deposits ..............................................................................................................
Borrowed money .................................................................................................
Total liabilities .......................................................................................................
Derivative transactions (*3)
Hedge accounting not applied .........................................................................
Hedge accounting applied (*4) .........................................................................
Total derivative transactions .................................................................................

¥
¥
¥
¥
¥

44,01743,674
1,411,347
3,870,774(22,059)
3,848,714
5,347,754
5,647,407
709,227
6,356,634(4,297)
2,625(1,671)

Fair value¥

44,017

Difference¥

43,678
1,411,347

¥
¥
¥
¥
¥

3,853,164
5,352,208
5,647,422
709,201
6,356,623(4,297)
2,625(1,671)

—
4
—

¥
¥
¥
¥
¥

4,449
4,453
14
(26)
(11)
—
—
—

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Consolidated Financial Statements

Consolidated Financial Statements
Thousands of U.S. dollars

2023
Carrying amountMoney held in trust (*1) ........................................................................................
Securities (*1)
Held-to-maturity debt securities .......................................................................
Available-for-sale securities ..............................................................................
Loans and bills discounted ..................................................................................
Reserve for possible loan losses (*2) ................................................................
Total assets .........................................................................................................
Deposits ..............................................................................................................
Borrowed money .................................................................................................
Total liabilities .......................................................................................................
Derivative transactions (*3)
Hedge accounting not applied .........................................................................
Hedge accounting applied (*4) .........................................................................
Total derivative transactions .................................................................................

$

Fair value

326,361$

Difference

326,361$

319,276
9,412,731
29,539,331(172,567)
29,366,764$ 39,425,140$ 42,804,351
2,669,737$ 45,474,095

29,279,674$ 39,336,838$ 42,804,388
2,669,497$ 45,473,886

$

$

$

$

318,063
9,412,731

24,601
1,527
26,136$—(1,213)—24,601
1,527
26,136$(87,081)(88,302)
29
(239)
(202)

$
$

—
—
—

$

(*1) These include investment trusts whose standard quotation is deemed as fair value by applying the treatment prescribed in Paragraphs 24-3 and 24-9 of the “Implementation Guidance on
Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31, June 17, 2021).
(*2) General reserve for possible loan losses and specific reserve for possible loan losses corresponding to loans are deducted.
(*3) Assets and liabilities arising from derivative transactions are presented on a net basis, and net liabilities are presented in parentheses.
(*4) These are interest rate swaps, etc., designated as hedging instruments in order to fix the cash flow from loans, etc., which are the hedged items, and mainly deferred hedge accounting is applied.
The “Practical Solution on the Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (Practical Issues Task Force (PITF) No. 40, March 17, 2022) is applied to these
hedging relationships.

(Note 1) The carrying amount of equity securities, etc., with no market price and investments in partnerships as of March 31, 2023 and 2022 are set
forth in the table below. These amounts are not included in “Available-for-sale securities” in the table for fair value of financial instruments.
Carrying amountThousands of
U.S. dollars

Millions of yen

2023

Unlisted equity securities (*1) (*2) ..............................................................................
Investments in partnerships (*3) ................................................................................

¥

2022

1,659
19,369

¥

2023

1,605
13,889$12,424145,053(*1) Unlisted equity securities are not subject to fair value disclosure in accordance with Paragraph 5 of “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ
Guidance No. 19, March 31, 2020).
(*2) No impairment loss was recognized for the fiscal year ended March 31, 2023, while the Group recognized impairment loss on unlisted equity securities of ¥108 million for the fiscal year ended
March 31, 2022.
(*3) Investments in partnerships are not subject to fair value disclosure in accordance with Paragraph 24-16 of “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, June 17, 2021).

(Note 2) Redemption schedule of monetary claims and securities with maturities
Millions of yen

2023
Due within one
year or lessDue from banks ...................................................... ¥ 1,028,426
Debt purchased ......................................................
1,503
Securities ...............................................................
53,149Held-to-maturity debt securities ..........................
14,089Bonds .............................................................
14,089Available-for-sale securities with contractual
39,060maturities ............................................................
Japanese government bonds..........................
—
Japanese local government bonds..................
21,477
Corporate bonds ............................................
8,903
Other ..............................................................
8,679
473,350
Loans and bills discounted (*) .................................
Total ....................................................................... ¥ 1,556,429

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Due after one
year throughthree years

Due after three
years throughfive years

Due after five
years throughseven years

Due after sevenyears through ten
years

Due after ten
years

¥

¥

¥

¥

¥

¥

—
—
28,854
18,975
18,975——28,980
8,335
8,335

—
—
58,955
1,233
1,233

—
—
106,019————
315,046——

9,878

20,64457,722106,019

315,046

—
3,552
6,326
—
799,217828,071

—
1,422
5,869
13,353591,805
620,785—
54,6222,700
400
371,197
430,153

10,00091,613
400
4,005
398,510504,529

74,0001,764
148,493
90,788928,985¥ 1,244,031

¥

¥

¥

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Millions of yen

2022
Due within one
year or lessDue from banks ...................................................... ¥ 1,439,653
Debt purchased ......................................................
1,466
Securities ...............................................................
69,900
Held-to-maturity debt securities ..........................
11,222
Bonds .............................................................
11,222Available-for-sale securities with contractual
58,678maturities ............................................................
Japanese government bonds..........................
12,500Japanese local government bonds..................
4,822
Corporate bonds ............................................
34,890
Other ..............................................................
6,465
491,586
Loans and bills discounted (*) .................................
Total ....................................................................... ¥ 2,002,607

Due after one
year throughthree years

Due after three
years throughfive years

Due after five
years throughseven years

Due after sevenyears through ten
years

Due after ten
years

¥

¥

¥

¥

¥

¥

—
—
122,555
21,131
21,131——
19,56910,093
10,093——65,653
1,226
1,226

—
—
194,907————
232,878——

101,423

9,476

64,427

194,907

232,878

54,50024,542
14,425
7,955
740,993863,549

—
8,252
1,223
—
593,427
612,997—
43,752
6,200
14,474
379,604
445,258

20,000142,3131,900
30,693
405,578
600,485

34,0002,206
156,347
40,325
897,715¥ 1,130,593

¥

¥

¥

Thousands of U.S. dollars

2023
Due within one
year or lessDue from banks ...................................................... $ 7,701,834
Debt purchased ......................................................
11,255
Securities ...............................................................
398,030
Held-to-maturity debt securities ..........................
105,511
Bonds .............................................................
105,511Available-for-sale securities with contractual
292,518
maturities ............................................................
Japanese government bonds..........................
—
Japanese local government bonds..................
160,840
Corporate bonds ............................................
66,674
Other ..............................................................
64,9963,544,896
Loans and bills discounted (*) .................................
Total ....................................................................... $ 11,656,024

Due after one
year throughthree years

Due after three
years throughfive years

Due after five
years throughseven years

Due after sevenyears through ten
years

Due after ten
years

$

$

$

$

$

—
—
216,086
142,102
142,102——
217,029
62,42062,420——441,511
9,233
9,233

—
—
793,971————2,359,364——

73,975

154,601

432,277

793,9712,359,364—
26,60047,375—
5,985,299$ 6,201,385—
10,64943,952100,000
4,432,000$ 4,649,030—
409,061
20,2202,995
2,779,877$ 3,221,395

74,889686,085
2,995
29,993
2,984,422$ 3,778,394

554,182
13,2101,112,057
679,9076,957,125$ 9,316,490(*) Loans from “bankrupt,” “effectively bankrupt” and “likely to become bankrupt” borrowers, which are not expected to be repaid, amounting to ¥45,069 million ($337,519 thousand) and ¥40,871
million at March 31, 2023 and 2022, respectively, are not included.
Loans whose payment terms were not determined amounting to ¥336,252 million ($2,518,175 thousand) and ¥320,997 million at March 31, 2023 and 2022, respectively, are not included.

(Note 3) Redemption schedule of borrowed money and interest bearing liabilities
Millions of yen

2023
Due within one
year or less

Deposits (*) ............................................................. ¥ 5,299,164
Negotiable certificates of deposit ............................
8,140
Call money and bills sold ........................................
—
Payables under repurchase agreements .................
—
Payables under securities lending transactions .......
139,161
53,944
Borrowed money ....................................................
Total ....................................................................... ¥ 5,500,409

Due after one
year throughthree years

Due after three
years throughfive years

Due after five
years throughseven years

Due after sevenyears through ten
years

Due after ten
years

¥

¥

¥

¥

¥

¥

377,645————
148,395
526,040¥

38,856————
151,480
190,336

¥

—
—
—
—
—
—
—

¥

—
—
—
—
—
2,670
2,670

¥

—
—
—
—
—
—
—

Millions of yen

2022
Due within one
year or less

Deposits (*) ............................................................. ¥ 5,194,750
Negotiable certificates of deposit ............................
7,540
Call money and bills sold ........................................
176,835
Payables under repurchase agreements .................
12,742
Payables under securities lending transactions .......
102,432
458,150
Borrowed money ....................................................
Total ....................................................................... ¥ 5,952,451

Due after one
year throughthree years

Due after three
years throughfive years

Due after five
years throughseven years

Due after sevenyears through ten
years

Due after ten
years

¥

¥

¥

¥

¥

¥

405,250————
187,693592,943¥

47,406————60,936108,343

¥

—
—
—
—
—
—
—

¥

—
—
—
—
—
2,447
2,447

¥

—
—
—
—
—
—
—

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements
Thousands of U.S. dollars

2023
Due within one
year or less

Deposits (*) ............................................................. $ 39,685,194
Negotiable certificates of deposit ............................
60,960Call money and bills sold ........................................
—
Payables under repurchase agreements .................
—
Payables under securities lending transactions .......
1,042,170
403,984
Borrowed money ....................................................
Total ....................................................................... $ 41,192,308

Due after one
year throughthree years

Due after three
years throughfive years

Due after five
years throughseven years

Due after sevenyears through ten
years

$

$

$

$

$

2,828,165————
1,111,323
3,939,489$

290,990————
1,134,426
1,425,417

—
—
—
—
—
—
—

$

$

—
—
—
—
—
19,99519,995Due after ten
years

$

—
—
—
—
—
—
—

$

(*) Demand deposits are included in “Due within one year or less.”c. Financial instruments categorized by fair value hierarchy
The fair value of financial instruments is categorized into the following three levels depending on the observability and materiality of the inputs used to
calculate fair value.
Level 1: Fair values measured by using observable inputs that are quoted prices in active markets for identical assets or liabilities
Level 2: Fair values measured by using observable inputs other than those included within Level 1
Level 3: Fair values measured by using unobservable inputs
In cases where multiple inputs with a material impact on the fair value measurement are used, the fair value is classified into the lowest level fromwhich significant inputs were used.
(1) Financial instruments carried at fair value in the consolidated balance sheet
Millions of yen

2023
Fair value
Level 1

Money held in trust (trading purposes and other) (*1) .......................
Securities
Available-for-sale securities (*1)
Japanese government bonds and Japanese local government
bonds, etc. ..............................................................................
Corporate bonds .....................................................................
Stocks .....................................................................................
Other .......................................................................................
Derivative transactions (*3)
Interest rate related ......................................................................
Currency related ..........................................................................
Total assets .....................................................................................
Derivative transactions (*3)
Interest rate related ......................................................................
Currency related ..........................................................................
Total liabilities ...................................................................................

¥¥

Level 2

7,543¥

Level 331,990

¥

Total

—

¥

39,53381,591

171,301—

252,892—
73,789101,015

172,22350
656,190———

172,22373,839757,205——
263,939

3,511
5,171
1,040,438

—
—
—

3,511
5,171
1,304,377

¥

—
—
—

¥

¥
¥
¥

3,018
2,174
5,193

¥
¥
¥

¥

—
—
—

¥
¥

—

¥

3,018
2,174
5,193

Millions of yen

2022
Fair value
Level 1

Money held in trust (trading purposes and other) .............................
Securities
Available-for-sale securities (*2)
Japanese government bonds and Japanese local government
bonds, etc. ..............................................................................
Corporate bonds .....................................................................
Stocks .....................................................................................
Other .......................................................................................
Derivative transactions
Interest rate related ......................................................................
Currency related ..........................................................................
Total assets .....................................................................................
Derivative transactions (*3)
Interest rate related ......................................................................
Currency related ..........................................................................
Total liabilities ...................................................................................

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¥

¥
¥
¥

Level 29,200¥

28,756

Level 3¥

Total

37,957

120,589

224,764—

345,354—
73,292
43,792

217,10850
49,772———

217,108
73,342
93,564——
246,875

3,170
1,797
525,419

—
—
—

3,170
1,797
772,295

—
—
—

¥
¥
¥

267
6,373
6,640

¥
¥
¥

—
—
—

¥
¥
¥

267
6,373
6,640

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Thousands of U.S. dollars

2023
Fair value
Level 1

Money held in trust (trading purposes and other) (*1) .......................
Securities
Available-for-sale securities (*1)
Japanese government bonds and Japanese local government
bonds, etc. ..............................................................................
Corporate bonds .....................................................................
Stocks .....................................................................................
Other .......................................................................................
Derivative transactions (*3)
Interest rate related ......................................................................
Currency related ..........................................................................
Total assets .....................................................................................
Derivative transactions (*3)
Interest rate related ......................................................................
Currency related ..........................................................................
Total liabilities ...................................................................................

$$

Level 256,489$Level 3

239,571

$

Total

—

$

296,060

611,031

1,282,865—

1,893,896—
552,602756,496

1,289,770
374
4,914,176———

1,289,770
552,976
5,670,673——
1,976,626

26,29338,725
7,791,792———

26,29338,725
9,768,419

$

$

—
—
—

$

$
$

22,601
16,28038,890

$
$

—
—
—

$

$
$

22,601
16,28038,890$(*1) Investment trusts whose standard quotation is deemed as fair value by applying the treatment prescribed in Paragraphs 24-3 and 24-9 of the “Implementation Guidance on Accounting Standard
for Fair Value Measurement” (ASBJ Guidance No. 31, June 17, 2021) are not included in the above tables. The amount of investment trusts in the consolidated balance sheet at March 31, 2023 towhich the treatment of Paragraphs 24-3 and 24-9 is applied was ¥4,045 million ($30,292 thousand) and ¥721 million ($5,399 thousand), respectively.
(*2) Investment trusts, etc., to which the transitional treatment prescribed in Paragraph 26 of the “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.
31, July 4, 2019) is applied are not included in the above table. The amount of such investment trusts, etc., in the consolidated balance sheet at March 31, 2022 was ¥688,038 million.
(*3) The amount of derivative transactions to which hedge accounting is applied in the consolidated balance sheet at March 31, 2023 and 2022 was ¥204 million ($1,527 thousand) and ¥2,625 million,
respectively.

(a) Reconciliation from the beginning balance to the ending balance of investment trusts to which the treatment of Paragraphs 24-3 and 24-9 isappliedMillions of yen

2023
Income (loss) or other comprehensive
income for the current fiscal year
Beginningbalance¥

4,756

Recorded in income(loss) (*1)

Recorded in othercomprehensive
income (*2)

¥

¥

37

10

Net amount ofpurchase, saleand redemption¥

Amount ofinvestment trusts
whose standard
quotation isdeemed as fair
value

(37)

¥

—

Amount ofinvestment trusts
whose standard
quotation is notdeemed as fair
value

¥

Endingbalance—¥

Valuation gains (losses)
on investment trusts heldat year-end recorded inincome (loss) for the current
fiscal year (*1)

4,767

¥

37

Thousands of U.S. dollars

2023
Income (loss) or other comprehensive
income for the current fiscal year
Beginningbalance

Recorded in income(loss) (*1)

Recorded in othercomprehensive
income (*2)

$ 35,617

$

$

277

74

Net amount ofpurchase, saleand redemption

$

(277)

Amount ofinvestment trusts
whose standard
quotation isdeemed as fairvalue

Amount ofinvestment trusts
whose standard
quotation is notdeemed as fairvalue

Endingbalance$$$ 35,699——

Valuation gains (losses)
on investment trusts heldat year-end recorded inincome (loss) for the current
fiscal year (*1)

$ 277(*1) Included in “Other operating income” in the consolidated statements of income.
(*2) Included in “Valuation difference on available-for-sale securities” under “Other comprehensive income” in the consolidated statements of comprehensive income.

(b) Breakdown of restrictions on cancellation or claims for repurchase at year-end

Main restrictions on cancellation or claims for repurchase
Halted acceptance of cancellation due to being in the process of liquidation of funds ...............................

¥

Millions of yen

Thousands of
U.S. dollars

2023

2023

1,345

$

10,072Lock-up period: One year after purchase
Acceptance of cancellation: At the end of every quarter with 90 days’ advance notice required
Upper limit per cancellation: 25% of each investor’s initial investment value
Refund: Retain 5% of cancellation refund in funds and pay back after settlement of funds ........................

1,393

10,432

Acceptance of cancellation: At the end of every month with 4 months’ advance notice required
Upper limit per cancellation: 10% of the entire fund
Refund: Pay back after 2 months from the cancellation date .....................................................................

1,306

9,780

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements(2) Financial instruments not carried at fair value in the consolidated balance sheet
Millions of yen

2023
Fair value
Level 1

Securities
Held-to-maturity debt securities
Corporate bonds .....................................................................
Loans and bills discounted ..............................................................
Total assets .....................................................................................
Deposits ..........................................................................................
Borrowed money .............................................................................
Total liabilities ...................................................................................

¥

Level 2

—
—
—
—
—
—

¥
¥
¥

¥
¥
¥
¥

Level 3—50,61950,6195,715,670
349,275
6,064,946¥¥¥¥

42,471
3,859,096
3,901,567
—
7,182
7,182

Total

¥
¥
¥
¥

42,471
3,909,715
3,952,186
5,715,670
356,458
6,072,128

Millions of yen

2022
Fair value
Level 1

Securities
Held-to-maturity debt securities
Corporate bonds .....................................................................
Loans and bills discounted ..............................................................
Total assets .....................................................................................
Deposits ..........................................................................................
Borrowed money .............................................................................
Total liabilities ...................................................................................

¥

Level 2

—
—
—
—
—
—

¥
¥
¥

¥
¥
¥
¥

Level 3—47,44447,444
5,647,422
703,425
6,350,847¥¥¥¥

43,6783,805,719
3,849,398
—
5,775
5,775

Total

¥
¥
¥
¥

43,6783,853,164
3,896,842
5,647,422
709,201
6,356,623

Thousands of U.S. dollars

2023
Fair value
Level 1

Securities
Held-to-maturity debt securities
Corporate bonds .....................................................................
Loans and bills discounted ..............................................................
Total assets .....................................................................................
Deposits ..........................................................................................
Borrowed money .............................................................................
Total liabilities ...................................................................................

$
$
$
$

Level 2

—
—
—
—
—
—

$
$
$
$

—
379,083
379,083
42,804,388
2,615,704
45,420,100

Level 3$$$$

318,063
28,900,591
29,218,654—
53,78553,785

Total

$
$
$
$

318,063
29,279,674
29,597,738
42,804,388
2,669,497
45,473,886(Note) Valuation techniques and inputs used in fair value measurement
AssetsMoney held in trust:
The fair value of securities managed as trust assets in individually managed money held in trust primarily for securities management purposes isdetermined based the price provided by the financial institutions, and classified according to the level of their components.
Money held in trust categorized by holding purposes is described in Note 26, “SECURITIES AND MONEY HELD IN TRUST.”
Securities:
The fair value of securities with unadjusted quoted prices in active markets are classified as Level 1. This includes mainly listed equity securities andJapanese government bonds.
Even when there are published quoted prices, however, fair values arising from markets that are not active are classified as Level 2. This mainly
includes Japanese local government bonds, corporate bonds and residential mortgage-backed securities. The fair value of investment trusts withno transaction price in markets is determined using a standard quotation if there are no material restrictions causing market participants to demandcompensation for risk of cancellation or claims for repurchase, and is classified as Level 2.
The fair value of private bonds guaranteed by the Bank is calculated by discounting the total amount of principal and interest at an interest
rate applicable to new similar bonds, following a division into certain periods, redemption methods and guarantee classification. For private bonds
guaranteed by the Bank issued by “bankrupt,” “effectively bankrupt” and “likely to become bankrupt” borrowers, an estimated loan loss is calculated
based on either a present value of estimated future cash flows or an amount expected to be recovered from collateral and guarantees. Therefore, theirfair value approximates the carrying amount of claims at the balance sheet date less reserve for possible loan losses, and such amount is used as fairvalue. The fair value of private bonds guaranteed by the Bank is classified as Level 3.
Securities categorized by the purpose for which they are held are described in Note 26, “SECURITIES AND MONEY HELD IN TRUST.”
Loans and bills discounted:
The fair value of loans and bills discounted is calculated by discounting the total amount of principal and interest at a discounted rate, that is a market
interest rate adjusted for credit risk, etc., following a division into loan type, internal rating and period. For loans with floating interest rates whichreflect market interest rates within a short period of time, fair value approximates carrying amount as long as the credit standing of the borrowers has
not changed significantly from the time of the transaction, therefore the carrying amount is used as the fair value. For loans to “bankrupt,” “effectively

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bankrupt” and “likely to become bankrupt” borrowers, the fair value is calculated based on the discounted present value of the estimated future cash
flows or that using an amount expected to be recovered from collateral and guarantees. These are classified as Level 3.
The fair value of embedded derivative loans is determined based on the discounted present value of future cash flows or a value calculated by
option pricing models, etc., using observable inputs, such as interest rates, and are classified as Level 2.
Liabilities
Deposits:
For demand deposits, the amount required to be paid if demanded on the consolidated balance sheet date is deemed to be the fair value. The fairvalue of time deposits is determined based on the present value by discounting future cash flows classified by a certain period. The interest rateapplicable to new deposits is used as the discount rate. For deposits whose contract period is short (within a year), the fair value approximatescarrying amount, which is therefore used as the fair value.
These are classified as Level 2.
Borrowed money:
The fair value of borrowed money is based on the net present value calculated by discounting the total amount of principal and interest classified bya certain period at an interest rate that takes the remaining period and credit risk into account. For borrowed money with floating interest rates whichreflect market interest rates within a short period of time, the fair value is deemed to approximate the carrying amount as long as the credit standing of
the Bank and its consolidated subsidiaries has not changed significantly after the transaction. In the cases, the carrying amount is used as fair value.
For borrowed money whose contract period is short (within a year), the fair value approximates the carrying amount, which is therefore used as fairvalue.
These are classified mainly as Level 2.
Derivative transactions:
The fair value of derivative transactions with unadjusted quoted prices in active markets available is classified as Level 1. This includes mainly bondfutures transactions and interest rate futures transactions.
However, as most derivatives are over-the-counter transactions and there are no published quoted prices, the fair value is determined based ona discounted present value of future cash flows or a value calculated by option pricing models, etc., depending on the transaction type and the period
to maturity. In cases in which unobservable inputs are not used or their impact is immaterial, fair value is classified as Level 2. These cases include
plain vanilla interest rate swaps and forward foreign exchange contracts. In addition, in cases in which significant unobservable inputs are used, the fairvalue is classified as Level 3.

26. SECURITIES AND MONEY HELD IN TRUSTThe securities in this note include “Trading account securities” and beneficial interests in trust assets under “Debt purchased,” in addition to “Securities”
classified on the consolidated balance sheets.
(1) Trading account securities and securities with available fair values at March 31, 2023 and 2022
(a) Trading securities
Not applicable for the fiscal years ended March 31, 2023 and 2022.
(b) Held-to-maturity debt securities
Millions of yen

2023
Carrying amount

Fair value

Unrealized gains (losses)

Fair value exceeding carrying amount:
Corporate bonds ...........................................................................
Subtotal.........................................................................................

¥
¥

9,703
9,703

¥
¥

9,708
9,708

¥
¥

5
5

Fair value not exceeding carrying amount:
Corporate bonds ...........................................................................
Subtotal.........................................................................................
Total ..............................................................................................

¥¥¥

32,93032,93042,633¥¥¥32,762
32,76242,471

¥
¥
¥

(168)
(168)
(162)

Millions of yen

2022
Carrying amount

Fair value

Unrealized gains (losses)

Fair value exceeding carrying amount:
Corporate bonds ...........................................................................
Subtotal.........................................................................................

¥¥

21,07521,075¥¥

21,108
21,108¥¥32
32

Fair value not exceeding carrying amount:
Corporate bonds ...........................................................................
Subtotal.........................................................................................
Total ..............................................................................................

¥¥¥

22,59822,59843,674¥¥¥22,56922,56943,678

¥
¥
¥

(28)
(28)
4

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements
Thousands of U.S. dollars

2023
Carrying amount

Fair value

Unrealized gains (losses)

Fair value exceeding carrying amount:
Corporate bonds ...........................................................................
Subtotal.........................................................................................

$$

72,66572,665$$72,70272,702$$37
37

Fair value not exceeding carrying amount:
Corporate bonds ...........................................................................
Subtotal.........................................................................................
Total ..............................................................................................

$$$

246,611
246,611319,276$$$

245,353
245,353
318,063$$$(1,258)(1,258)(1,213)(c) Available-for-sale securities
Millions of yen

2023

Carrying amount exceeding acquisition cost:
Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Subtotal.........................................................................................
Carrying amount not exceeding acquisition cost:
Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Subtotal.........................................................................................
Total ..............................................................................................

Carrying amount

Acquisition cost

¥

¥

¥

¥

¥
¥

73,034
89,17739,551
23,35826,26656,24236,390218,454805
335,938
42,039147,942
145,956
701,684
85,636
1,038,428
1,256,882

¥

¥

¥
¥

32,47487,70838,37523,25326,07955,24235,760175,425917
345,178
44,687
151,201
149,289
747,488
90,657
1,093,585
1,269,010

Unrealized gains (losses)

¥

¥

¥

¥
¥

40,560
1,468
1,176
104
187
999
630
43,028(112)(9,240)(2,648)(3,258)(3,333)(45,804)(5,021)(55,157)(12,128)

Millions of yen

2022

Carrying amount exceeding acquisition cost:
Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Subtotal.........................................................................................
Carrying amount not exceeding acquisition cost:
Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Subtotal.........................................................................................
Total ..............................................................................................

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Carrying amount

Acquisition cost

¥

¥

¥

¥

¥
¥

71,051
206,577
68,00255,70482,87095,78817,905
373,4172,290
355,884
52,587
169,059
134,237
679,755
83,276
1,037,930
1,411,347

¥

¥

¥
¥

31,526
204,585
67,12055,272
82,192
92,645
17,828
328,7562,547
360,183
54,007
170,679
135,497
700,840
90,215
1,063,572
1,392,328

Unrealized gains (losses)

¥

¥

¥

¥
¥

39,525
1,992
882
432
678
3,142
77
44,660(257)(4,298)(1,419)(1,619)(1,259)(21,085)(6,938)(25,641)
19,019About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

Thousands of U.S. dollars

2023

Carrying amount exceeding acquisition cost:
Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Subtotal.........................................................................................
Carrying amount not exceeding acquisition cost:
Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Subtotal.........................................................................................
Total ..............................................................................................

Carrying amount

Acquisition cost

$

$

$

$

$
$

546,948
667,842
296,195
174,926
196,704
421,193272,523
1,635,991

6,028
2,515,824
314,828
1,107,930
1,093,057
5,254,879
641,324
7,776,739
9,412,731

243,196
656,841
287,388
174,140
195,304
413,704
267,804
1,313,749

$

$

6,867
2,585,022
334,658
1,132,337
1,118,018
5,597,903
678,926
8,189,807
9,503,557$$

Unrealized gains (losses)

$

$

$

$
$

303,751
10,993
8,807
778
1,400
7,481
4,718
322,234(838)(69,197)(19,830)(24,399)(24,960)(343,024)(37,602)(413,068)(90,826)(2) Held-to-maturity debt securities sold for the fiscal years ended March 31, 2023 and 2022
Millions of yen

2023
Cost of sales

Bonds ...........................................................................................
Japanese corporate bonds ........................................................
Total ..............................................................................................

¥
¥

177
177
177

Sales amount

¥

177
177
177

¥

Gains (losses) on sales

¥
¥

0
0
0

Millions of yen

2022
Cost of sales

Bonds ...........................................................................................
Japanese corporate bonds ........................................................
Total ..............................................................................................

¥
¥

654
654
654

Sales amount

¥

656
656
656

¥

Gains (losses) on sales

¥
¥

2
2
2

Thousands of U.S. dollars

2023
Cost of sales

Bonds ...........................................................................................
Japanese corporate bonds ........................................................
Total ..............................................................................................

$
$

1,325
1,325
1,325

Sales amount

$

1,325
1,325
1,325

$

Gains (losses) on sales

$
$

0
0
0

(Reason for sale) Sales of Japanese corporate bonds comprise retirement by purchase of private bonds.
(3) Available-for-sale securities sold for the fiscal years ended March 31, 2023 and 2022
Millions of yen

2023
Sales amount

Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Total ..............................................................................................

¥

¥

1,837
180,004
120,866
59,137—
115,100
96,366296,942

Gains on sales

Losses on sales

¥

¥

¥

1,123
1,502
1,357
145
—
491
327
3,117

¥

—
310
103
206
—
10,628
9,992
10,939

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements
Millions of yen

2022
Sales amount

Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Total ..............................................................................................

¥

¥

5,042
51,56651,356179
30
123,283
96,006
179,892

Gains on sales

Losses on sales

¥

¥

1,309
148
148
—
—
3,045
2,241
4,504

¥

53
8
7
0
0
3,040
2,408
3,102

¥

Thousands of U.S. dollars

2023
Sales amount

Stocks ...........................................................................................
Bonds ...........................................................................................
Japanese government bonds ....................................................
Japanese local government bonds ............................................
Japanese corporate bonds ........................................................
Others ...........................................................................................
Foreign securities included .........................................................
Total ..............................................................................................

$$

13,757
1,348,041
905,159442,874—
861,978
721,680
2,223,784

Gains on sales

Losses on sales

$

$

8,410
11,248
10,162
1,085
—
3,677
2,448
23,343

$

—
2,321
771
1,542
—
79,59274,82981,921$(4) Money held in trust at March 31, 2023 and 2022
Money held in trust for trading purposes
Thousands of
U.S. dollars

Millions of yen

2023

Carrying amount (fair value) .......................................................................................
Amount of net unrealized gains (losses) included in the consolidated
statements of income ...............................................................................................

¥

2022

22,000¥2023

22,000$164,756

358

545

4,081

Money held in trust for purposes other than trading or held-to-maturity
Thousands of
U.S. dollars

Millions of yen

2023

Carrying amount .......................................................................................................
Acquisition cost ........................................................................................................
Difference .................................................................................................................
Unrealized gain .....................................................................................................
Unrealized loss......................................................................................................

¥

2022

21,57921,913
(334)
26
(361)

¥

22,01722,473
(455)
—
(455)

2023

$

161,604
164,105(2,501)
194(2,703)The principal amount in trust with contracts to compensate losses on the principal was as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Money held in trust ...................................................................................................

¥

2022

4,659

¥

5,467

2023

$

34,891(5) Components of the valuation difference on available-for-sale securities recorded under net assets at March 31, 2023 and 2022
Thousands of
U.S. dollars

Millions of yen

2023

Valuation difference ...................................................................................................
Deferred tax assets (liabilities) ...................................................................................
Valuation difference on available-for-sale securities before adjustment fornoncontrolling interests .............................................................................................
Noncontrolling interests adjustment ..........................................................................
Valuation difference on available-for-sale securities ...................................................
(6) Securities reclassified for the fiscal years ended March 31, 2023 and 2022
Not applicable.

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2022

2023

¥

(12,413)
5,875¥

18,562(3,440)$(92,960)
43,997¥(6,537)¥

15,121$(48,955)¥—(6,537)¥—
15,121$—(48,955)

About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements(7) Impairment loss on securities
In the event that the fair value of securities other than securities held for trading purpose (excluding stocks, etc. that do not have a market price andinvestments in partnerships) declines significantly from the acquisition cost and the fair value is not expected to recover, such securities are stated atfair value and the difference between the fair value and the acquisition cost is recognized as loss in the period of the decline (“impairment loss”). The fairvalue is regarded as “significantly declined” when (i) the fair value as of the end of the fiscal year has declined by more than 50% of the acquisition cost or (ii)the fair value as of the end of the fiscal year has declined by more than 30% but less than 50% of the acquisition cost, and is not expected to recover
within one year. No impairment loss was recognized for the fiscal year ended March 31, 2023 while the Bank recognized impairment loss on stocks of¥143 million for the fiscal year ended March 31, 2022.

27. DERIVATIVE TRANSACTIONS(1) Derivative contracts to which hedge accounting is not appliedWith respect to derivatives to which hedge accounting is not applied, the contract amount or notional principal amount defined in the contract, fairvalue and unrealized gains (losses) by transaction type as of March 31, 2023 and 2022 were as follows.
Note that the contract amount does not represent the market risk exposure of the derivative transactions themselves.
(a) Interest rate related transactions
Millions of yen

2023

Category

Transaction typeInterest rate futures
Exchange
Sold ................................................................
transactions
Bought ...........................................................
Interest rate options
Sold ................................................................
Bought ...........................................................
Over-the-counter Forward rate agreements
Sold ................................................................
transactions
Bought ...........................................................
Interest rate swaps
Receive fixed rate/pay floating rate .................
Receive floating rate/pay fixed rate .................
Receive floating rate/pay floating rate..............
Interest rate options
Sold ................................................................
Bought ...........................................................
Other
Sold ................................................................
Bought ...........................................................
Total ................................................................................................

Contract amount

¥

¥

—
—

Contract amount due
after one year¥——

Unrealized gains(losses)

Fair value

¥

—
—

¥

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

38,11439,363—32,09333,342
—

(697)
986
—

(697)
986
—

—
—

—
—

—
—

—
—

—
—
—

—
—
—

—
—
288

—
—
288

¥

¥

¥

Millions of yen

2022

Category

Transaction typeInterest rate futures
Exchange
Sold ................................................................
transactions
Bought ...........................................................
Interest rate options
Sold ................................................................
Bought ...........................................................
Over-the-counter Forward rate agreements
Sold ................................................................
transactions
Bought ...........................................................
Interest rate swaps
Receive fixed rate/pay floating rate .................
Receive floating rate/pay fixed rate .................
Receive floating rate/pay floating rate..............
Interest rate options
Sold ................................................................
Bought ...........................................................
Other
Sold ................................................................
Bought ...........................................................
Total ................................................................................................

Contract amount

¥

¥

—
—

Contract amount due
after one year¥——

Unrealized gains(losses)

Fair value

¥

—
—

¥

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

36,68038,409—36,68038,243
—

(78)
357
—

(78)
357
—

—
—

—
—

—
—

—
—

—
—
—

—
—
—

—
—
278

—
—
278

¥

¥

¥

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements
Thousands of U.S. dollars

2023

Category

Transaction typeInterest rate futures
Exchange
Sold ................................................................
transactions
Bought ...........................................................
Interest rate options
Sold ................................................................
Bought ...........................................................
Over-the-counter Forward rate agreements
Sold ................................................................
transactions
Bought ...........................................................
Interest rate swaps
Receive fixed rate/pay floating rate .................
Receive floating rate/pay fixed rate .................
Receive floating rate/pay floating rate..............
Interest rate options
Sold ................................................................
Bought ...........................................................
Other
Sold ................................................................
Bought ...........................................................
Total ................................................................................................

Contract amount$$Contract amount due
after one year——$

Unrealized gains(losses)

Fair value

—
—

$

—
—

$

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

—
—

285,433
294,787—

240,342
249,696—(5,219)7,384—(5,219)
7,384
—

—
—

—
—

—
—

—
—

—
—
—

—
—
—

—
—
2,156

—
—
2,156

$

$

$

Notes: 1. The above transactions are measured at fair value, and unrealized gains (losses), except as in Note 2 below, are recognized in the consolidated statements of income.
2. The following amounts for which the application of hedge accounting was cancelled since the requirements for hedge accounting were not met were included in “Receive floating rate/pay
fixed rate” of interest rate swaps.
Thousands ofMillions of yen
U.S. dollars

2023

Contract amount ......................................................................................................
Fair value ..................................................................................................................
Unrealized gains (losses) ...........................................................................................

¥

2022

¥

1,249
(19)
(19)

2023

1,729
(49)
(49)

$

9,353
(142)
(142)

The following unrealized gains (losses) on “Receive floating rate/pay fixed rate” were deferred over the hedge period due to the cancellation.
Thousands of
U.S. dollars

Millions of yen

2023

Unrealized gains (losses) ...........................................................................................

¥

2022

¥

(57)

2023

81

$

(426)

(b) Currency related transactions
Millions of yen

2023

Category

Transaction type
Currency futures
Exchange
Sold ................................................................
transactions
Bought ...........................................................
Currency options
Sold ................................................................
Bought ...........................................................
Over-the-counter Currency swaps .................................................
Forward foreign exchange contracts
transactions
Sold ................................................................
Bought ..........................................................
Currency options
Sold ................................................................
Bought ...........................................................
Other
Sold ................................................................
Bought ...........................................................
Total ................................................................................................

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Contract amount

¥

¥

—
—

Contract amount due
after one year¥——

Unrealized gains(losses)

Fair value

¥

—
—

¥

—
—

—
—
1,084,269——
1,002,207

—
—
2,995

—
—
2,995

16,077
14,906

10,164
9,265

(862)
863

(862)
863

—
—

—
—

—
—

—
—

—
—
—

—
—
—

—
—
2,996

—
—
2,996

¥

¥

¥

About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

Millions of yen

2022

Category

Transaction type
Currency futures
Exchange
Sold ................................................................
transactions
Bought ...........................................................
Currency options
Sold ................................................................
Bought ...........................................................
Over-the-counter Currency swaps .................................................
Forward foreign exchange contracts
transactions
Sold ................................................................
Bought ...........................................................
Currency options
Sold ................................................................
Bought ...........................................................
Other
Sold ................................................................
Bought ...........................................................
Total ................................................................................................

Contract amount

¥

¥

—
—

Contract amount due
after one year¥——

Unrealized gains(losses)

Fair value

¥

—
—

¥

—
—

—
—
522,426——
435,097——(3,084)——(3,084)35,135
10,835

10,4198,828(2,397)905(2,397)
905

—
—

—
—

—
—

—
—

—
—
—

—
—
—

—
—
(4,575)——(4,575)¥¥¥

Thousands of U.S. dollars

2023

Category

Transaction type
Currency futures
Exchange
Sold ................................................................
transactions
Bought ...........................................................
Currency options
Sold ................................................................
Bought ...........................................................
Over-the-counter Currency swaps .................................................
Forward foreign exchange contracts
transactions
Sold ................................................................
Bought ..........................................................
Currency options
Sold ................................................................
Bought ...........................................................
Other
Sold ................................................................
Bought ...........................................................
Total ................................................................................................

Contract amount

$

$

—
—

Contract amount due
after one year$——

Unrealized gains(losses)

Fair value

$

—
—

$

—
—

—
—
8,120,040——
7,505,481——
22,429——22,429120,399
111,630

76,117
69,385(6,455)
6,462(6,455)
6,462

—
—

—
—

—
—

—
—

—
—
—

—
—
—

—
—
22,436——22,436$$$

Note: The above transactions are measured at fair value, and unrealized gains (losses) are recognized in the consolidated statements of income.

(c) Stock related transactions
None.
(d) Bond related transactions
None.
(e) Commodity related transactions
None.
(f) Credit derivative transactions
None.

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements(2) Derivative contracts to which hedge accounting is appliedWith respect to derivatives to which hedge accounting is applied, the contract amount or notional principal amount defined in the contract, and fairvalue by transaction type and by hedge accounting method as of March 31, 2023 and 2022 were as follows. Note that the contract amount does not
represent the market risk exposure of the derivative transactions themselves.
(a) Interest rate related transactions
Millions of yen

2023

Hedge accounting method
Fundamental method

Exceptional accounting
method for interest rate
swaps
Total

Transaction typeInterest rate swaps:
Receive fixed rate/pay
floating rate
Receive floating rate/pay
fixed rate
Interest rate futures
Interest rate options
Other
Interest rate swaps
Receive fixed rate/pay
floating rate
Receive floating rate/pay
fixed rate

Major hedged items
Interest bearing
assets and liabilities
such as loans,
deposits, andsecurities
denominated inforeign currencies

Contract amount¥—Contract amount due
after one year¥—

Fair value¥—

127,358

127,208

204

—
—
—

—
—
—

—
—
—

—

—

—

—

—
—

¥

—

—
¥

—

—
¥

204

Millions of yen

2022

Hedge accounting method
Fundamental method

Exceptional accounting
method for interest rate
swaps
Total

Transaction typeInterest rate swaps:
Receive fixed rate/pay
floating rate
Receive floating rate/pay
fixed rate
Interest rate futures
Interest rate options
Other
Interest rate swaps
Receive fixed rate/pay
floating rate
Receive floating rate/pay
fixed rate

Major hedged items
Interest bearing
assets and liabilities
such as loans,
deposits, andsecurities
denominated inforeign currencies

Contract amount¥—Contract amount due
after one year¥—

Fair value¥—

25,06525,060

2,625

—
—
—

—
—
—

—
—
—

—

—

—

—

—

—

—

—

¥

—

¥

—

¥

2,625

Thousands of U.S. dollars

2023

Hedge accounting method
Fundamental method

Exceptional accounting
method for interest rate
swaps
Total

Transaction typeInterest rate swaps:
Receive fixed rate/pay
floating rate
Receive floating rate/pay
fixed rate
Interest rate futures
Interest rate options
Other
Interest rate swaps
Receive fixed rate/pay
floating rate
Receive floating rate/pay
fixed rate

Major hedged items
Interest bearing
assets and liabilities
such as loans,
deposits, andsecurities
denominated inforeign currencies

Contract amount$—Contract amount due
after one year$—

Fair value$—

953,778

952,654

1,527

—
—
—

—
—
—

—
—
—

—

—

—

—

—
—

$

—

—
$

—

—
$

1,527

Note: Gain/loss on the above contracts is principally deferred until the maturity of the hedged items under the fundamental method in accordance with the “Treatment for Accounting and Auditing ofApplication of Accounting Standard for Financial Instruments in the Banking Industry” (JICPA Industry Committee Report No. 24, March 17, 2022).

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Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements(b) Currency related transactions
None.
(c) Stock related transactions
None.
(d) Bond related transactions
None.

28. PROJECTED BENEFIT OBLIGATIONS(1) Outline of employees’ retirement allowance
The Bank provides a non-contributory unfunded lump-sum retirement allowance plan, a funded defined benefit pension plan, and a funded defined
contribution pension plan for employees.
On April 1, 2018, the Bank transferred its defined benefit pension plans to risk sharing pension plans and defined contribution pension plansclassified as a defined contribution plan provided in Paragraph 4 of “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, December
16, 2016). In addition, a plan similar to a cash balance plan has been introduced to some of the employees subject to the risk sharing pension plans.
In addition to the amounts that are equivalent to standard contributions, the Bank makes contributions to risk sharing pension plans that arecommensurate with risks as prescribed in the plan terms. Benefits from the risk sharing pension plans increase or decrease each fiscal year based on
the assets of the pension plan.
Under the plan similar to a cash balance plan, a virtual individual account balance corresponding to the funded amounts and source of pension
funds will be set up for each participant, and after retirement, interest principally based on market interest rate trends will be credited to the balance.
Eleven consolidated subsidiaries have non-contributory unfunded lump-sum retirement allowance plans as defined benefit plans and apply thesimplified method in the calculation of their liability for retirement benefits and retirement benefit costs using the method in which the necessary amounts
to be paid for retirement benefits on a voluntary basis is regarded as the retirement benefit obligations. Certain consolidated subsidiaries have adopted
funded defined contribution pension plans.
In addition, some consolidated subsidiaries participate in the Smaller Enterprise Retirement Allowance Mutual Aid Scheme (the “SERAMA
Scheme”).
(2) Defined benefit plans(a) Movement in projected benefit obligations
Thousands of
U.S. dollars

Millions of yen

2023

Balance at the beginning of the fiscal year ................................................................
Service cost ..........................................................................................................
Interest cost ..........................................................................................................
Actuarial loss (gain) ...............................................................................................
Benefits paid .........................................................................................................
Prior service costs.................................................................................................
Balance at the end of the fiscal year..........................................................................

¥

¥

2022

12,191
607
80
(1)
(733)
—
12,145¥

12,072
627
80
14
(601)
—
12,191

¥

2023

$

$

91,297
4,545
599
(7)
(5,489)—90,953

Note: Plans based on the simplified method have been included in the above.

(b) Movements in plan assets
Not applicable for the fiscal years ended March 31, 2023 and 2022.
(c) Reconciliation from projected benefit obligations and plan assets to liability (asset) for retirement benefits
Thousands of
U.S. dollars

Millions of yen

2023

Funded projected benefit obligations ........................................................................
Plan assets ...............................................................................................................
Funded assets under the SERAMA Scheme .............................................................
Unfunded projected benefit obligations .....................................................................
Net liability (assets) for retirement benefits recorded on the consolidatedbalance sheet ...........................................................................................................
Liability for retirement benefits ...................................................................................
Asset for retirement benefits .....................................................................................
Net liability (assets) for retirement benefits recorded on the consolidatedbalance sheet ...........................................................................................................

2022

2023

¥

482
—
(229)
252
11,663

¥

448
—
(215)
232
11,743$

3,609—(1,714)
1,887
87,343¥

11,916¥

11,976$89,238¥

11,916—¥

11,976—$89,238—¥

11,916¥

11,976$89,238

Note: Plans based on the simplified method have been included in the above.

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements(d) Retirement benefit costs
Thousands of
U.S. dollars

Millions of yen

2023

Service cost ..............................................................................................................
Interest cost ..............................................................................................................
Expected return on plan assets.................................................................................
Net actuarial loss amortization ..................................................................................
Amortization of prior service costs ............................................................................
Total retirement benefit costs ....................................................................................

¥

2022

607
80
—
211
—
899

¥

2023

¥

627
80
—
218
—
925

¥

$

$

4,545
599
—
1,580
—
6,732

Note: Retirement benefit costs of consolidated subsidiaries which have applied the simplified method are included in “Service cost.”(e) Adjustments for retirement benefits
The components of adjustments for retirement benefits (before tax effect) were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Actuarial gain (loss) ...................................................................................................
Total..........................................................................................................................

¥
¥

2022

212
212

2023

¥
¥

204
204

$
$

1,587
1,587

(f) Accumulated adjustments for retirement benefits
The components of accumulated adjustments for retirement benefits (before tax effect) were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Unrecognized actuarial gain (loss) .............................................................................
Total..........................................................................................................................

¥
¥

2022

(572)
(572)

¥
¥

2023

(784)
(784)

$
$

(4,283)(4,283)(g) Plan assets
Not applicable for the fiscal years ended March 31, 2023 and 2022.
(h) Actuarial assumptions
The principal actuarial assumptions for the fiscal years ended March 31, 2023 and 2022 were as follows:
Discount rate ............................................................................................................................................
Long-term expected rate of return ............................................................................................................
Estimated rate of increase in salary ...........................................................................................................

2023

2022

0.70%
—%
2.50%

0.70%
—%
2.50%

(3) Defined contribution plans(a) Retirement benefit costs for defined contribution plans
The amounts paid to defined contribution plans by the Bank and its consolidated subsidiaries was ¥626 million ($4,688 thousand) and ¥642 million for
the fiscal years ended March 31, 2023 and 2022, respectively.
(b) The amounts equivalent to contributions commensurate with risks
The contributions that are commensurate with risks required to be contributed from the next fiscal year onwards are ¥983 million ($7,361 thousand),and the number of years remaining for contributions equivalent to the contributions that are commensurate with risks is six and a half years.

29. STOCK OPTIONS(1) Items and amounts expensed related to stock options
Thousands of
U.S. dollars

Millions of yen

2023

General and administrative expenses ........................................................................

¥

2022

—

¥

2023

3

Note: On August 31, 2021, the Bank abolished a system of stock options granted as stock-based compensation and shifted to a performance-linked stock compensation plan.

(2) Stock options outstanding at March 31, 2023
Not applicable.

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About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

30. INCOME TAXESThe Group is subject to a number of taxes based on income, including corporation tax, inhabitant tax and enterprise tax, which, in the aggregate,
indicate a statutory tax rate in Japan of approximately 30.4 % for the fiscal years ended March 31, 2023 and 2022.
(1) Significant components of deferred tax assets and liabilities as of March 31, 2023 and 2022 were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Deferred tax assets:
Excess reserve for possible loan losses.................................................................
Liability for retirement benefits ...............................................................................
Depreciation..........................................................................................................
Write-down of land................................................................................................
Impairment loss ....................................................................................................
Valuation loss on securities ...................................................................................
Valuation difference on available-for-sale securities ................................................
Deferred gains or losses on hedges ......................................................................
Tax loss carryforwards ..........................................................................................
Other ....................................................................................................................
Subtotal deferred tax assets: .................................................................................
Valuation allowance pertaining to tax loss carryforwards (Note 3) ..........................
Valuation allowance pertaining to total of deductible temporary differences, etc. ...
Subtotal valuation allowance .....................................................................................
Total deferred tax assets ........................................................................................
Deferred tax liabilities:
Valuation difference on available-for-sale securities ................................................
Deferred gains or losses on hedges ......................................................................
Other ....................................................................................................................
Total deferred tax liabilities ....................................................................................
Net deferred tax assets (liabilities) (Note 1)...........................................................

¥

2022

7,535
3,654
711
872
1,218
2,738
5,912
230
677
1,874
25,426(659)(7,266)(7,926)
17,499
(36)
(272)
(156)
(465)
17,034

¥

¥

2023

7,442
3,651
733
875
1,388
2,805
—
—
559
2,384
19,840(541)(7,686)(8,228)
11,612$(3,440)(792)(143)(4,377)
7,235¥

56,42927,364
5,324
6,530
9,121
20,50444,274
1,722
5,070
14,034
190,414(4,935)(54,414)(59,357)
131,049(269)(2,036)(1,168)(3,482)
127,566$

Notes: 1. Net deferred tax assets (liabilities) as of March 31, 2023 and 2022 are included in the following accounts in the consolidated balance sheets:
Thousands of
U.S. dollars

Millions of yen

2023

Deferred tax assets ...................................................................................................
Deferred tax liabilities ................................................................................................

¥

2022

17,046
11

¥

2023

7,247
12

$

127,656
82

2. As described in Note 4, “CHANGES IN ACCOUNTING POLICIES,” the Group has changed the criteria for recognizing income from installment sales transactions from the fiscal year ended
March 31, 2022.
3. Amount of tax loss carryforwards and their deferred tax assets by carryforwards period
Millions of yen

2023

Tax loss carryforwards (*) ...
Valuation allowance .........
Deferred tax assets..........

One year or less

After one year
After two years
After three years
through two years through three years through four years

After four years
through five years

After five years

¥

¥

¥

¥

—
—
—

—
—
—

¥

—
—
—

¥

—
—
—

—
—
—

677
(659)
17

Total

¥

677
(659)
17

Millions of yen

2022

Tax loss carryforwards (*) ...
Valuation allowance .........
Deferred tax assets..........

One year or less

After one year
After two years
After three years
through two years through three years through four years

After four years
through five years

After five years

¥

¥

¥

¥

—
—
—

—
—
—

¥

—
—
—

¥

—
—
—

—
—
—

559
(541)
18

Total

¥

559
(541)
18

Thousands of U.S. dollars

2023

Tax loss carryforwards (*) ...
Valuation allowance .........
Deferred tax assets..........

One year or less

After one year
After two years
After three years
through two years through three years through four years

After four years
through five years

After five years

$

$

$

$

—
—
—

—
—
—

$

—
—
—

$

—
—
—

—
—
—

5,070
(4,935)
127

Total

$

5,070
(4,935)127(*) The tax loss carryforwards are the amounts multiplied by the statutory tax rate.

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements(2) Significant differences between the statutory tax rate and the effective tax rate for financial statement purposes for the fiscal years
ended March 31, 2023 and 2022
2023

2022

30.4%
(4.7)%
0.5%(2.7)%
1.0%
0.5%
25.0%

30.4%
3.0%
0.1%
(0.7)%
0.4%
0.3%
33.7%

Statutory tax rate ......................................................................................................................................
Valuation allowance...............................................................................................................................
Non-deductible expenses .....................................................................................................................
Non-taxable income..............................................................................................................................
Inhabitant tax on per capita basis, etc. ..................................................................................................
Other ....................................................................................................................................................
Effective tax rate .......................................................................................................................................

31. SEGMENT AND RELATED INFORMATION(1) Overview of the reportable segments
The Bank’s reportable segments are determined on the basis that separate financial information for such segments is available and examined
periodically by the Board of Directors to make decisions regarding the allocation of management resources and assess the business performance ofthe segments within the Group. The Group’s main operations are banking services. The Bank also provides leasing services and operates securities
services, credit card services, and consulting services. The Group has divided its business operations into the two reportable segments of “Banking”
and “Leasing.”(2) Basis of measurement for reported segment profit (loss), segment assets, segment liabilities and other material items
The accounting methods used for reportable business segments are presented in accordance with Note 2, “SUMMARY OF SIGNIFICANTACCOUNTING POLICIES.” The reportable segment profit figures are based on ordinary profit. Income arising from intersegment transactions is basedon arm’s length prices.
(Changes in measurement method of profit (loss) of reportable segments)
As described in Note 4, “CHANGES IN ACCOUNTING POLICIES,” the Group has changed the criteria for recognizing income from installment sales
transactions in the leasing business from the fiscal year ended March 31, 2022.
(3) Reportable segment profit (loss), segment assets, segment liabilities and other material items
Segment information for the fiscal years ended March 31, 2023 and 2022 is summarized as follows:
Millions of yen

2023
Reportable segments
Banking

Ordinary income:Outside customers ......................................... ¥ 65,009
1,411Intersegment income ......................................
Total ............................................................ ¥ 66,421
Segment profit .................................................... ¥5,768
Segment assets.................................................. 6,521,463
Segment liabilities ............................................... 6,270,024
Others:Depreciation ...................................................
3,181
Interest income ...............................................
47,599Interest expense .............................................
3,739
Extraordinary gain ...........................................
105
Extraordinary loss ...........................................
105
Tax expense ...................................................
1,028
6,133
Increase in tangible and intangible fixed assets ...

Leasing

¥
¥
¥

Total

9,276
613
9,890
316
40,77335,793¥74,2852,025¥ 76,311¥
6,084
6,562,237
6,305,818

93
6
85
—
0
99
166

3,275
47,605
3,824
105
105
1,127
6,300

Other

¥
¥
¥

Total

3,312
2,648
5,961
1,522
31,413
13,319¥77,598
4,674¥ 82,273¥
7,607
6,593,651
6,319,138

109
654
7
—
6
434
42

3,385
48,259
3,832
105
111
1,562
6,343

Adjustment¥¥¥

Consolidated

149 ¥ 77,748(4,674)—(4,524) ¥ 77,748(1,285) ¥6,322(51,534) 6,542,117(39,819) 6,279,318
27(1,396)
(90)
—
—
22
(52)

3,412
46,862
3,741
105
111
1,584
6,290

Notes: 1. Ordinary income (“Total income” less extraordinary gain included in “Other income” in the consolidated statements of income) is presented in place of net sales of operating companies ofother industry groups.
2. “Other” includes business segments which are not included in the reportable segments and comprises credit guarantees, real estate leasing and management, software development, credit
cards and securities.
3. Adjustments are as below:(1) Adjustment of ordinary income from outside customers of ¥149 million is mainly the recovery of written-off claims included in “Others.”(2) Adjustment of segment profit of ¥(1,285) million is the elimination of intersegment transactions.
(3) Adjustment of segment assets of ¥(51,534) million is the elimination of intersegment transactions.
(4) Adjustment of segment liabilities of ¥(39,819) million is the elimination of intersegment transactions and the adjustment of liability for retirement benefits.
(5) Adjustment of depreciation of ¥27 million is the elimination of intersegment transactions.
(6) Adjustment of interest income of ¥(1,396) million is the elimination of intersegment transactions.
(7) Adjustment of interest expense of ¥(90) million is the elimination of intersegment transactions.
(8) Adjustment of tax expense of ¥22 million is the elimination of intersegment transactions.
(9) Adjustment of increase in tangible and intangible fixed assets of ¥(52) million is due to intersegment transactions.
4. Segment profit is reconciled to ordinary profit, which represents ordinary income less ordinary expenses. Ordinary expenses represent “Total expenses” less extraordinary loss included in “Other
expenses” in the consolidated statements of income. Therefore, consolidated segment profit, which shows ordinary profit, is reconciled to “Income before income taxes” through the addition/
deduction of extraordinary gain/loss, net.

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Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

Millions of yen

2022
Reportable segments
Banking

Ordinary income:Outside customers ......................................... ¥ 65,483
1,402Intersegment income ......................................
Total ............................................................ ¥ 66,886
Segment profit .................................................... ¥ 17,455
Segment assets.................................................. 6,981,997
Segment liabilities ............................................... 6,706,723
Others:Depreciation ...................................................
3,107
Interest income ...............................................
48,920Interest expense .............................................
906
Extraordinary gain ...........................................
85
Extraordinary loss ...........................................
128
Tax expense ...................................................
5,550
2,766
Increase in tangible and intangible fixed assets ...

Leasing

¥
¥
¥

Total

Other

8,773
695
9,468
306
39,22034,364¥74,256
2,098¥ 76,354¥ 17,761
7,021,218
6,741,088

91
5
80
—
0
93
133

3,199
48,925
987
85
128
5,643
2,899

¥
¥
¥

Total

3,186
2,733
5,919
1,567
31,582
13,358¥77,442
4,831¥ 82,274¥ 19,329
7,052,800
6,754,446

113
739
6
160
92
376
67

3,313
49,664
994
246
220
6,020
2,967

Adjustment¥¥¥

Consolidated

88 ¥ 77,531(4,831)—(4,742) ¥ 77,531(1,347) ¥ 17,981(51,359)
7,001,441(39,479)
6,714,967(16)(1,478)
(91)
(160)
(63)
21
(4)

3,296
48,185
902
85
156
6,042
2,963

Notes: 1. Ordinary income (“Total income” less extraordinary gain included in “Other income” in the consolidated statements of income) is presented in place of net sales of operating companies ofother industry groups.
2. “Other” includes business segments which are not included in the reportable segments and comprises credit guarantees, real estate leasing and management, software development, credit
cards and securities.
3. Adjustments are as below:(1) Adjustment of ordinary income from outside customers of ¥88 million is mainly the recovery of written-off claims included in “Others.”(2) Adjustment of segment profit of ¥(1,347) million is the elimination of intersegment transactions.
(3) Adjustment of segment assets of ¥(51,359) million is the elimination of intersegment transactions.
(4) Adjustment of segment liabilities of ¥(39,479) million is the elimination of intersegment transactions and the adjustment of liability for retirement benefits.
(5) Adjustment of depreciation of ¥(16) million is the elimination of intersegment transactions.
(6) Adjustment of interest income of ¥(1,478) million is the elimination of intersegment transactions.
(7) Adjustment of interest expense of ¥(91) million is the elimination of intersegment transactions.
(8) Adjustment of extraordinary gain of ¥(160) million is the elimination of intersegment transactions.
(9) Adjustment of extraordinary loss of ¥(63) million is the elimination of intersegment transactions.
(10) Adjustment of tax expense of ¥21 million is the elimination of intersegment transactions.
(11) Adjustment of increase in tangible and intangible fixed assets of ¥(4) million is due to intersegment transactions.
4. Segment profit is reconciled to ordinary profit, which represents ordinary income less ordinary expenses. Ordinary expenses represent “Total expenses” less extraordinary loss included in “Other
expenses” in the consolidated statements of income. Therefore, consolidated segment profit, which shows ordinary profit, is reconciled to “Income before income taxes” through the addition/
deduction of extraordinary gain/loss, net.
Thousands of U.S. dollars

2023
Reportable segments
Banking

Ordinary income:Outside customers .........................................
Intersegment income ......................................
Total ............................................................
Segment profit ....................................................
Segment assets..................................................
Segment liabilities ...............................................
Others:Depreciation ...................................................
Interest income ...............................................
Interest expense .............................................
Extraordinary gain ...........................................
Extraordinary loss ...........................................
Tax expense ...................................................
Increase in tangible and intangible fixed assets ...

Leasing

Total$ 486,849
10,566$ 497,423$ 43,196
48,838,935
46,955,920

69,467
4,590$ 74,065$
2,366
305,347
268,052

23,822356,466
28,001
786
786
7,698
45,929

696
44
636
—
0
741
1,243

$

Other

Total

$ 556,316
15,165$ 571,489$ 45,562
49,144,289
47,223,979

24,803
19,830$ 44,641$ 11,398
235,250
99,74524,526
356,51128,637
786
786
8,440
47,180

816
4,897
52
—
44
3,250
314

$

Adjustment

Consolidated$ 581,127
35,003$ 616,138$ 56,968
49,379,547
47,323,732

1,115(35,003)$ (33,880)$(9,623)(385,935)(298,202)$ 582,251—$ 582,251$ 47,345
48,993,611
47,025,522

25,350361,40928,697786
831
11,69747,502

202(10,454)
(674)
—
—
164
(389)

25,552350,947
28,016786
831
11,862
47,105$

Notes: 1. Ordinary income (“Total income” less extraordinary gain included in “Other income” in the consolidated statements of income) is presented in place of net sales of operating companies of otherindustry groups.
2. “Other” includes business segments which are not included in the reportable segments and comprises credit guarantees, real estate leasing and management, software development, credit
cards and securities.
3. Adjustments are as below:(1) Adjustment of ordinary income from outside customers of $1,115 thousand is mainly the recovery of written-off claims included in “Others.”(2) Adjustment of segment profit of $(9,623) thousand is the elimination of intersegment transactions.
(3) Adjustment of segment assets of $(385,935) thousand is the elimination of intersegment transactions.
(4) Adjustment of segment liabilities of $(298,202) thousand is the elimination of intersegment transactions and the adjustment of liability for retirement benefits.
(5) Adjustment of depreciation of $202 thousand is the elimination of intersegment transactions.
(6) Adjustment of interest income of $(10,454) thousand is the elimination of intersegment transactions.
(7) Adjustment of interest expense of $(674) thousand is the elimination of intersegment transactions.
(8) Adjustment of tax expense of $164 thousand is the elimination of intersegment transactions.
(9) Adjustment of increase in tangible and intangible fixed assets of $(389) thousand is due to intersegment transactions.
4. Segment profit is reconciled to ordinary profit, which represents ordinary income less ordinary expenses. Ordinary expenses represent “Total expenses” less extraordinary loss included in “Other
expenses” in the consolidated statements of income. Therefore, consolidated segment profit, which shows ordinary profit, is reconciled to “Income before income taxes” through the addition/
deduction of extraordinary gain/loss, net.

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements(4) Information about services
Millions of yen

2023
Securities andinvestments

Lending

Ordinary income from outside customers................

¥

35,771¥

Leasing

14,746

¥

Other

9,276

¥

Total

17,953¥77,748Millions of yen

2022
Securities andinvestments

Lending

Ordinary income from outside customers................

¥

32,810¥

Leasing

19,540

¥

Other

8,773

¥

Total

16,406¥

77,531Thousands of U.S. dollars

2023
Securities andinvestments

Lending

Ordinary income from outside customers................

$

267,887$

Leasing

110,432$

Other

69,467$

Total

134,449$

582,251

Note: Ordinary income (“Total income” less extraordinary gain) is presented in place of net sales of operating companies of other industry groups.

(5) Information about geographic areas(a) Ordinary income
The ratio of ordinary income from outside customers within Japan to the total ordinary income in the consolidated statements of income exceeded
90% for both fiscal years ended March 31, 2023 and 2022; therefore, no information about geographic areas is required to be disclosed.
(b) Tangible fixed assets
The ratio of tangible fixed assets located in Japan to the total tangible fixed assets in the consolidated balance sheets exceeded 90% as of March 31,
2023 and 2022; therefore, no information about geographic areas is required to be disclosed.
(6) Information about major customers
There was no ordinary income from a specific customer exceeding 10% of the total consolidated ordinary income for both fiscal years ended March
31, 2023 and 2022; therefore, information about major customers is not required to be disclosed.
(7) Impairment loss on fixed assets for each reportable segment
Millions of yen

2023
Reportable segments
Banking

Impairment loss ...........................................................

¥

Leasing

40

¥

Other

—

¥

Total

2

¥

3

¥

14

$

43

Millions of yen

2022
Reportable segments
Banking

Impairment loss ...........................................................

¥

Leasing

58

¥

Other

—

¥

Total

62

Thousands of U.S. dollars

2023
Reportable segments
Banking

Impairment loss ...........................................................

$

299

Leasing$

Note: “Other” comprises financial product transactions.

(8) Amortization of goodwill and its remaining balance for each reportable segment
There is no information to be reported on amortization of goodwill and its remaining balance.
(9) Gain on negative goodwill for each reportable segment
There is no information to be reported on gain on negative goodwill.

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Other

—

$

Total

322

About Nanto Bank

Our Shared Vision

Consolidated
Developing Human
Value Creation by theGovernance Supporting Our
Resources for Value Creation Group’s Human Resources Proactive Human Resources Financial Statements

32. RELATED PARTY TRANSACTIONS
For the fiscal year ended March 31, 2023, related party transactions were as follows:
Relationshipwith the Bank

Name

Location

Officers of the
Bank and theirrelatives

Haruyuki
Kakutani—

Kitamura
Forestry Co., Osaka City
A company in
Ltd.
Osaka
which a majority(Note 3)of voting rights
NIKKENare held byDaito City
BLAST CO.,
officers of the
Osaka
LTD. (Note 4)
Bank and their
Kyowa Shokai
relatives
Kizugawa
Yakuhin K.K.
City Kyoto(Note 5)Paid-in
VotingOccuparights
capitaltion/
ownership(millions
Business(%)
of yen)Relationship ofrelated parties

Details oftransactions

Officeworker—Executive Officer ofthe Bank
Loans

Lending of money(Note 2)
Interest receivable

32

Forestry

Directly
owned
1.31

Loans

10

Metal
processing—

10

Sales ofchemicals—¥—

Transaction Transaction
Year-end
Year-end
amountamountAccounting balancebalance(millions of (thousands of
title(millions of (thousands ofyen)
U.S. dollars)
yen)
U.S. dollars)
¥—
$—
Loans
¥10
$74
0

0

—

—

—

Lending of money
Interest receivable

200
2

1,497
14

Loans
—

200
—

1,497
—

Loans

Lending of money
Interest receivable

—
0

—
0

Loans
—

74
—

554
—

Loans

Lending of money
Interest receivable

98
1

733
7

Loans
—

89
—

666
—

Policies regarding and terms and conditions of the transactions
Notes: 1. Terms and conditions of loans are determined on an arm’s length basis.
2. Real estate is accepted as collateral for loan transactions.
3. Relatives of Matazaemon Kitamura (Director of the Bank) owned 100% of the voting rights of this company directly.
4. Relatives of Naoki Minowa (Corporate Auditor of the Bank) owned 62.5% of the voting rights of this company directly.
5. Relatives of Hisayoshi Tahara (Executive Officer of the Bank) owned 62.5% of the voting rights of this company directly.

For the fiscal year ended March 31, 2022, related party transactions were as follows:
Relationshipwith the Bank

Name

Location

Officers of the
Bank and theirrelatives

Haruyuki
Kakutani—

Kitamura
Forestry Co., Osaka City
Ltd.
Osaka
A company in(Note 3)
which a majorityof voting rights
NIKKENare held by
BLAST CO., Daito City
officers of the
LTD.
Osaka
Bank and their(Note 4)
relatives
Kyowa Shokai Kizugawa
Yakuhin K.K.
City
(Note 5)
Kyoto

Paid-in
VotingOccuparights
capitaltion/
ownership(millions
Business(%)
of yen)Relationship ofrelated parties

Details oftransactions

Officeworker—Executive Officer ofthe Bank
Loans

Lending of money(Note 2)
Interest receivable

32

Forestry

Directly
owned
1.28

Loans

10

Metal
processing—

10

Sales ofchemicals—¥—

Transaction
Year-end
amount Accounting balance(millions of
title(millions of
yen)
yen)
¥—
Loans
¥11
0

—

—

Lending of money
Interest receivable

200
2

Loans
—

200
—

Loans

Lending of money
Interest receivable

—
0

Loans
—

82
—

Loans

Lending of money
Interest receivable

76
0

Loans
—

80
—

Policies regarding and terms and conditions of the transactions
Notes: 1. Terms and conditions of loans are determined on an arm’s length basis.
2. Real estate is accepted as collateral for loan transactions.
3. Matazaemon Kitamura (Director of the Bank) and his relatives owned 6% and 94% of the voting rights, respectively, of this company directly.
4. Relatives of Naoki Minowa (Corporate Auditor of the Bank) owned 62.5% of the voting rights of this company directly.
5. Relatives of Hisayoshi Tahara (Executive Officer of the Bank) owned 62.5% of the voting rights of this company directly.
6. Mr. Satoru Wada resigned as a Director of the Bank on June 29, 2021 and the loan balance to Mr. Masato Ibi, Mr. Wada’s son-in-law, was ¥24 million as of that date.

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Financial Data

Financial Data

Consolidated Financial Statements

Consolidated Financial Statements
33. PER SHARE INFORMATION
Net assets per share at March 31, 2023 and 2022 and net income per share for the fiscal years then ended were as follows:
Yen

U.S. dollars

2023

Net assets per share .................................................................................................
Net income per share – basic ...................................................................................

¥

2022

8,276.62
147.75¥2023

8,800.10
364.29

$

61.98
1.10

Basic information in computing the above per share data was as follows:
Thousands of
U.S. dollars

Millions of yen

2023(Net assets per share)
Net assets ................................................................................................................
Net assets attributed to common stock ....................................................................
Outstanding number of shares of common stock at end of year
(unit: thousands of shares) ......................................................................................
(Basic net income per share)
Net income attributable to owners of parent .............................................................
Net income attributable to common stockholders of parent ......................................
Average outstanding number of shares during the year (unit: thousands of shares) ...

¥

2022

262,798
262,798

¥

4,731
4,731
32,024286,473
286,473$

1,968,082
1,968,082

32,55331,751¥2023¥

11,867
11,86732,577—$35,43035,430—Notes: 1. As described in Note 4, “CHANGES IN ACCOUNTING POLICIES,” the Group has changed the criteria for recognizing income from installment sales transactions from the fiscal year ended March
31, 2022.
2. Net income per share – diluted for the fiscal years ended March 31, 2023 and 2022 is not presented because there were no residual shares.
3. The Bank introduced the Director Remuneration BIP Trust. Shares of the Bank remaining in the Trust, which were recorded as treasury stock in stockholders’ equity, were included in treasury
stock to be deducted for computing net assets per share and net income per share.
The numbers of shares of treasury stock as of March 31, 2023 and 2022 that were deducted for computing net asset per share were 73 thousand and 73 thousand, respectively. In addition, theaverage numbers of shares of treasury stock during the fiscal years ended March 31, 2023 and 2022 that were deducted for computing net income per share were 73 thousand and 47 thousand,respectively.

34. SUBSEQUENT EVENTS.
Not applicable.

35. BORROWED MONEY AND LEASE OBLIGATIONS
a. The details of borrowed money as of March 31, 2023 and 2022 were as follows:
Thousands of
U.S. dollars

Millions of yen

2023

Borrowed money
Due from May 2023 through August 2030
Average interest rate: 0.74% p.a.. .........................................................................

¥

356,490

2022

¥

2023

709,227$

2,669,737

Annual maturities of borrowed money as of March 31, 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen

2024 .........................................................................................................................................................
2025 .........................................................................................................................................................
2026 .........................................................................................................................................................
2027 .........................................................................................................................................................
2028 .........................................................................................................................................................
2029 and thereafter ..................................................................................................................................
Total..........................................................................................................................................................

¥¥

53,94486,89461,501150,975
505
2,670
356,490$$

403,984
650,745
460,578
1,130,644
3,781
19,9952,669,737b. Lease obligations
Lease obligations are included in “Other liabilities” in the accompanying consolidated balance sheets.
Annual maturities of lease obligation as of March 31, 2023 were as follows:
Thousands of
U.S. dollars

Millions of yen

2024 .........................................................................................................................................................
2025 and thereafter ..................................................................................................................................
Total..........................................................................................................................................................

¥
¥

0
—
0

$
$

0
—
0

Average interest rates are omitted since the interest equivalent amount included in total lease charges is allocated over the related period using thestraight-line method.
c. Other
The Group has not issued commercial paper by way of promissory notes to fund operating activities.

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