Gunma Bank : Consolidated Financial Results for the Fiscal Year Ended March 31, 2023(Under Japanese GAAP)(898KB)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 10, 2023

	Consolidated Financial Results
	for the Fiscal Year Ended March 31, 2023
	(Under Japanese GAAP)
Company name:	The Gunma Bank, Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	8334
URL:	https://www.gunmabank.co.jp/
Representative:	Akihiko Fukai, President
Inquiries:	Hideyuki Saito, Managing Executive Officer and General Manager, Corporate Planning Department
Scheduled date of annual general meeting of shareholders:	June 27, 2023
Scheduled date to commence dividend payments:	June 28, 2023
Scheduled date to file annual securities report:	June 27, 2023
Trading accounts:		None
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results											(Percentages indicate year-on-year changes.)
		Ordinary income					Ordinary profit		Profit attributable to
							owners of parent
Fiscal year ended	Millions of yen	%				Millions of yen		%	Millions of yen		%
Mar.31, 2023	176,589	17.6				38,316		(2.0)		27,933		5.7
Mar.31, 2022	150,197	4.8				39,111		94.8		26,436		95.8
Note:	Comprehensive income	For the fiscal year ended Mar.31, 2023 :	(5,377)	million yen	[	―	%]
		For the fiscal year ended Mar.31, 2022 :	(9,504)	million yen	[	―	%]
		Basic earnings	Diluted earnings		Return on equity	Ratio of ordinary	Ratio of operating
		per share		per share			profit to total assets	profit to net sales
Fiscal year ended	Yen				Yen				%		%			%
Mar.31, 2023	68.19				―				5.3		0.4			21.7
Mar.31, 2022	63.33				―				4.9		0.4			26.0

Reference: Share of profit(loss) of entities accounted for using equity method For the fiscal year ended Mar.31, 2023 : 221 million yen

For the fiscal year ended Mar.31, 2022 :

146 million yen

(2) Consolidated financial position

				Total assets		Net assets		Equity-to-asset ratio	Net assets per share
As of				Millions of yen		Millions of yen		%	Yen
Mar.31, 2023			10,662,300		515,810		4.8	1,268.77
Mar.31, 2022			11,148,539		529,256		4.7	1,288.78
Reference:	Equity	As of Mar.31,	2023 :	515,810 million yen	As of Mar.31, 2022	:	529,256 million yen
Note:	"Equity-to-asset ratio" represents "Net assets"/ "Total assets" at term end.
	"Equity-to-asset ratio" stated above was not calculated based on the public notice of "Equity-to-asset ratio".

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
As of	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Mar.31, 2023	(656,166)	(153,319)	(8,066)	1,829,954
Mar.31, 2022	459,588	(127,807)	(9,281)	2,647,506

2. Cash dividends

		Annual dividends per share		Total cash		Ratio of dividends
	First	Second	Third	Fiscal		dividends	payout ratio	to net assets
	quarter-	quarter-	quarter-	year-	Total	(Consolidated)
	(Total)	(Consolidated)
	end	end	end	end
Fiscal year	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
ended Mar. 31, 2022	―	7.00	―	7.00	14.00	5,818	22.1	1.1
ended Mar. 31, 2023	―	8.00	―	10.00	18.00	7,352	26.4	1.4
ending Mar. 31, 2024(Forecast)	―	10.00	―	10.00	20.00		29.0

Note: Fiscal year-end cash dividend of 10.00 yen for the fiscal year ended Mar. 31, 2023 includes a commemorative dividend of 1.00 yen for the 90th anniversary of the establishment of the Gunma Bank, Ltd.

3. Consolidated earnings forecast for the fiscal year 2023 (from April 1, 2023 to March 31, 2024)

						(Percentages indicate year-on-year changes.)
	Ordinary profit		Profit attributable to		Basic earnings
		owners of parent		per share
Fiscal year 2023	Millions of yen	%	Millions of yen		%	Yen
ending Sep. 30, 2023	20,000	9.9	14,000		1.5	34.44
ending Mar. 31, 2024	40,000	4.4	28,000		0.2	68.87

Notes
(1)	Changes in significant subsidiaries during the period
	(changes in specified subsidiaries resulting in the change in scope of consolidation):	None
(2)	Changes in accounting policies, changes in accounting estimates, and restatement
	① Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
	② Changes in accounting policies due to other reasons:	None
	③ Changes in accounting estimates:	None
	④ Restatement:	None

1. Number of issued shares (common shares)
2. • Total number of issued shares at the end of the period (including treasury shares)

As of Mar. 31, 2023	425,888,177	shares
As of Mar. 31, 2022	425,888,177	shares

• Number of treasury shares at the end of the period

As of Mar. 31, 2023	19,344,421	shares
As of Mar. 31, 2022	15,224,436	shares

• Average number of shares outstanding during the period

Fiscal year ended Mar. 31, 2023	409,628,996	shares
Fiscal year ended Mar. 31, 2022	417,417,910	shares

(Reference) Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Non-consolidated operating results							(Percentages indicate year-on-year changes.)
			Ordinary income			Ordinary profit			Profit
Fiscal year ended		Millions of yen	%		Millions of yen	%		Millions of yen	%
Mar.31, 2023			143,243	22.8		33,567	(2.5)		24,622	5.3
Mar.31, 2022			116,633	7.0		34,444	103.9		23,378	100.1
			Basic earnings			Diluted earnings
				per share			per share
Fiscal year ended				Yen				Yen
Mar.31, 2023				60.11				―
Mar.31, 2022				56.01				―
(2) Non-consolidated financial position
			Total assets	Net assets		Equity-to-asset ratio	Net assets per share
As of			Millions of yen		Millions of yen		%		Yen
Mar.31, 2023			10,633,101	473,386		4.5		1,164.42
Mar.31, 2022			11,126,926	492,871		4.4		1,200.18
Reference:	Equity	As of Mar. 31, 2023 :	473,386 million yen
		As of Mar. 31, 2022 :	492,871 million yen
Note:	"Equity-to-asset ratio" represents "Net assets"/ "Total assets" at term end.
	"Equity-to-asset ratio" stated above was not calculated based on the public notice of "Equity-to-asset ratio".

2. Non-consolidated earnings forecast for the fiscal year 2023 (from April 1, 2023 to March 31, 2024)

					(Percentages indicate year-on-year changes.)
	Ordinary profit		Profit		Basic earnings
			per share
Fiscal year 2023	Millions of yen	%	Millions of yen	%	Yen
ending Sep. 30, 2023	18,000	16.7	13,000	9.9	31.98
ending Mar. 31, 2024	36,000	7.2	25,000	1.5	61.49

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  The description of future performance of this report is based on information which is presently available and certain assumptions which are considered to be reasonable, and it does not guarantee future performance. Please take note that future performance may differ from forecasts depending on various future factors.

The Gunma Bank, Ltd.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

Table of contents

1.	Operating results
(1)	Analysis of the operating results ･･･････････････････････････････････････････････････････････････････	2
(2)	Analysis of the financial conditions ･････････････････････････････････････････････････････････････････	2
(3)	Analysis of the cash flows ･･････････････････････････････････････････････････････････････････････････	2
(4)	Earnings forecasts for the fiscal year 2023, ending March 31, 2024 ････････････････････････････････	2
(5)	Basic policy on profit distribution and dividends for the current and next fiscal periods ･･････････････	2
2.	Basic approach to the selection of accounting standards･････････････････････････････	2
3. Consolidated financial statements and notes
(1)	Consolidated balance sheets ･･････････････････････････････････････････････････････････････････････	3
(2)	Consolidated statements of income and comprehensive Income ･･････････････････････････････････	5
(3)	Consolidated statements of changes in net assets ･･････････････････････････････････････････････････	7
(4)	Consolidated statements of cash flows ･････････････････････････････････････････････････････････････	9
(5)	Notes to the consolidated financial statements ･････････････････････････････････････････････････････	11
4. Non-consolidated financial statements
(1)	Non-consolidatedbalance sheets ･････････････････････････････････････････････････････････	13
(2)	Non-consolidatedstatements of income ････････････････････････････････････････････････････	16
(3)	Non-consolidated statements of changes in net assets ･･･････････････････････････････････････	18

Supplementary information

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The Gunma Bank, Ltd.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

1. Operating results

1. Analysis of the operating results
   Operating results for the consolidated fiscal year were as follows.
   Ordinary income amounted to 176,589 million yen, an increase of 26,392 million yen compared with the previous fiscal year, mainly due to increases in interest income and other income such as gain on sales of stock and other securities, etc. Ordinary expenses amounted to 138,273 million yen, an increase of 27,187 million yen compared with the previous fiscal year, mainly due to increases in other ordinary expenses such as loss on sales of bonds, etc.
   As a result, ordinary profit amounted to 38,316 million yen, a decrease of 794 million yen compared with the previous fiscal year.
   On the other hand, profit attributable to owners of parent amounted to 27,933 million yen, an increase of 1,496 million yen compared with the previous fiscal year.
2. Analysis of the financial conditions
   The financial position as of the end of the consolidated fiscal year was as follows.
   Total assets decreased by 486.2 billion yen to 10,662.3 billion yen during the period, whereas total liabilities decreased by 472.7 billion yen to 10,146.4 billion yen during the period. Also, net assets decreased by 13.4 billion yen to 515.8 billion yen during the period.
   As for the main accounts, loans and bills discounted increased by 233.2 billion yen to 5,991.2 billion yen during the period. Securities increased by 116.2 billion yen to 2,617.2 billion yen during the period.
   Deposits increased by 85.5 billion yen to 8,044.8 billion yen during the period.
3. Analysis of the cash flows
   The cash flow status for the consolidated fiscal year was as follows.
   The cash flow from operating activities was a net outflow of 656.1 billion yen during the period, mainly due to a decrease in borrowed money and an increase in loans and bills discounted.
   The cash flow from investing activities was a net outflow of 153.3 billion yen during the period, mainly due to purchase of securities. The cash flow from financing activities was a net outflow of 8.0 billion yen during the period, mainly due to dividends paid and purchase of treasury shares.
   As a result, cash and cash equivalents at end of period decreased by 817.5 billion yen to 1,829.9 billion yen during the period.
4. Earnings forecasts for the fiscal year 2023, ending March 31, 2024
   Earnings forecasts for the fiscal year 2023, ending March 31, 2024 were as follows.

				(Unit : Billions of yen)
	FY2023 ending		FY2023 ending
	Mar.31, 2024	Compared with FY2022	Mar.31, 2024	Compared with FY2022
	【Consolidated】	ended Mar.31, 2023	【Non-Consolidated】	ended Mar.31, 2023
Ordinary profit	40.0	1.7	36.0	2.5
(Attributable to owners of parent) Profit	28.0	0.1	25.0	0.4

Note: Earnings forecasts are based on information available at the present time.

Actual results may differ from the forecasts due to various of economic situation, etc.

1. Basic policy on profit distribution and dividends for the current and next fiscal periods
   As a regional financial institution, the Gunma Bank, Ltd. (" the Bank ") will strive to increase shareholder returns by striving to enhance equity capital while balancing profitability and investment for growth.
   Specifically, the Bank is setting a target of 40% of the profit attributable to owners of parent for the ratio of total payout to shareholders combining stable cash dividend payments and the acquisition cost of treasury shares.
   As announced in November 2022, the Bank plans to pay a year-end dividend of 10 yen for the FY2022, ended Mar. 31, 2023. The annual dividend will be 18 yen in total (up 4 yen compared with the previous year), including the interim dividend of 8 yen.
   In addition, the Bank have resolved to acquire treasury shares(total cost of acquisition : up to 5.0 billion yen) at today's board meeting. The ratio of total payout to shareholders combining cash dividends payments "total 7.3 billion yen" and the acquisition cost of treasury shares (6.9 billion yen, including the above acquisition limit) will be 50% degree .
   In the dividend forecast for the fiscal year 2023 ending March 31, 2024, the annual cash dividends per share is increased by 2 yen to 20 yen (10 yen as the interim cash dividends , 10 yen as the year-end cash dividends).

		FY2023 ending Mar.31,2024		FY2022 ended Mar.31,2023 (b)
		forecast	(a)	(a)-(b)
Annual cash dividends per share		20.00 yen	2.00 yen	18.00 yen
	Interim cash dividends		10.00 yen	2.00 yen	8.00 yen
	Year-end cash dividends		10.00 yen	―	10.00 yen

2． Basic approach to the selection of accounting standards

In consideration for adapting to the International Financial Reporting Standards ("IFRS"), the Bank intend to respond appropriately in light of the environment surrounding the Bank and trends of other banks.

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The Gunma Bank, Ltd.

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

3. Consolidated financial statements and notes

(1) Consolidated balance sheets

		(Unit: Millions of yen)
	As of Mar. 31, 2022	As of Mar. 31, 2023
Assets：
Cash and due from banks	2,651,118	1,833,043
Call loans and bills bought	6,119	―
Monetary claims bought	5,706	―
Trading securities	942	541
Money held in trust	8,268	9,854
Securities	2,501,019	2,617,250
Loans and bills discounted	5,758,096	5,991,297
Foreign exchanges	34,244	10,045
Lease receivables and investments in leases	60,191	60,554
Other assets	78,824	74,120
Tangible fixed assets	66,191	65,013
Buildings, net	18,818	18,539
Land	39,550	38,233
Leased assets, net	597	530
Construction in progress	361	960
Other tangible fixed assets	6,863	6,748
Intangible fixed assets	9,236	8,053
Software	8,735	7,559
Other intangible fixed assets	500	494
Retirement benefit asset	10,813	16,963
Deferred tax assets	1,488	13,003
Customers' liabilities for acceptances and guarantees	8,764	8,527
Allowance for loan losses	(52,485)	(45,967)
Total assets	11,148,539	10,662,300
Liabilities：
Deposits	7,959,333	8,044,837
Negotiable certificates of deposit	209,258	199,419
Call money and bills sold	70,496	28,708
Securities sold under repurchase agreements	8,153	86,565
Cash collateral received for securities lent	732,995	723,449
Borrowed money	1,500,795	926,993
Foreign exchanges	534	338
Bonds payable	50,000	50,000
Borrowed money from trust account	12,056	12,988
Other liabilities	57,106	55,774
Provision for bonuses for directors (and other officers)	59	56
Retirement benefit liability	362	358
Provision for retirement benefits for directors (and other officers)	204	167
Provision for reimbursement of deposits	367	264
Provision for point card certificates	155	―
Provision for contingent loss	900	926
Reserves under special laws	0	0
Deferred tax liabilities	359	―
Deferred tax liabilities for land revaluation	7,377	7,112
Acceptances and guarantees	8,764	8,527
Total liabilities	10,619,283	10,146,489

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