Gunma Bank : Financial Results for the First Quarter of Fiscal Year 2021, ending March 31, 2022

The Gunma Bank,Ltd.

August 3, 2021

The Gunma Bank, Ltd.

Financial Results for the First Quarter of Fiscal Year 2021, ending March 31, 2022

Stock Exchange Listing:	Tokyo(code:8334)
URL:	https://www.gunmabank.co.jp/
Representative:	Akihiko Fukai, President
For Inquiry:	Takeo Uchibori, Managing Executive Officer and General Manager,
		Corporate Planning Department
Filing date of Financial Statements:	August 4, 2021 (scheduled)
Trading Accounts:	No
Payment date of cash dividends:	－
Supplementary Materials :	Attached
IR Conference :	Not scheduled
				(Japanese yen amounts of less than 1 million have been rounded down.)
1. Financial Highlights (from April 1, 2021 to June 30, 2021)
(1) Consolidated Operating Results			(％:Changes from corresponding period of the previous fiscal year)
		Ordinary Income	Ordinary Profit	Profit Attributable to
		Owners of Parent
Ｆｉｒｓｔ Quarter		million of yen		％	million of yen		％	million of yen		％
Ended Jun.30, 2021		44,767		13.9	17,095		146.6	11,467		108.8
Ended Jun.30, 2020		39,291		0.4	6,932		(39.4)	5,492		(33.8)
(Note) Comprehensive Income Ｆｉｒｓｔ Quarter ended Ｊｕｎ. 30, 2021: 13,841 million of yen [ (41.3)%]
Ｆｉｒｓｔ Quarter ended Ｊｕｎ. 30, 2020: 23,564 million of yen [ 329.3%]
		Profit per Share	Profit per Share (Diluted)
Ｆｉｒｓｔ Quarter				yen			yen
Ended Jun.30, 2021				27.28			―
Ended Jun.30, 2020				13.09		13.08
(2) Consolidated Financial Conditions
		Total Assets		Total Net Assets	Capital Assets to
			Total Assets
As of		million of yen	million of yen			％
Jun.30, 2021		10,738,229		558,954			5.2
Mar.31, 2021		10,615,756		548,093			5.2

(Reference) Capital assets as of	Jun. 30, 2021	: 558,954 million of yen;	Mar. 31, 2021 : 548,093 million of yen
(Note) "Capital Assets to Total Assets" represents	"Total Net Assets"/ "Total Assets" at term end.

"Capital Assets to Total Assets" stated above was not calculated based on the public notice of "Capital Assets to Total Assets"

2. Cash Dividends for Shareholders

		Annual Cash Dividends Per Share
	First	Second	Third	Fiscal	Total
	Quarter-end	Quarter-end	Quarter-end	Year-end
Fiscal year	yen	yen	yen	yen	yen
Ended Mar. 31, 2021	―	6.00	―	7.00	13.00
Ending Mar. 31, 2022	―
Ending Mar. 31, 2022(Projection)		7.00	―	7.00	14.00
(Note) Revisions of released cash dividends projections: No

3. Consolidated Earnings Projections for Fiscal year 2021	(from April 1, 2021 to March 31, 2022)
			(％:Changes from corresponding period of the previous fiscal year)
	Ordinary Profit		Profit Attributable to	Profit per Share
			Owners of Parent
	million of yen		％		million of yen	％	yen
Six Months endｉｎｇ Sep. 30, 2021	16,500		0.5		11,500	(6.6)	27.36
Fiscal Year endｉｎｇ Mar. 31, 2022	35,000		74.3		24,000	77.8	57.10

(Note) Revisions of released earnings projections: No

- 1 -

			The Gunma Bank,Ltd.
Notes
(1)	Material changes in consolidated subsidiaries during the period
	(changes in specific subsidiaries accompanied by changes in scope of consolidation):		No
(2)	Adoption of particular accounting methods for quarterly consolidated financial statements:		No
(3)	Changes in accounting principles, accounting estimates and restatement
	① Changes in accounting principles accordance with changes in accounting standard, etc.:		Yes
	② Other changes in accounting principles:			No
	③ Changes in accounting estimates:			No
	④ Restatement:			No
(4)	Number of issued shares (common stock)
	① Number of issued shares (including treasury shares):	Jun. 30, 2021	435,888,177	Shares
		Mar. 31, 2021	435,888,177	Shares
	② Number of treasury shares:	Jun. 30, 2021	15,548,639	Shares
		Mar. 31, 2021	15,548,367	Shares
	③ Average number of issued shares :	Three months ended Jun. 30, 2021	420,339,647	Shares
		Three months ended Jun. 30, 2020	419,512,243	Shares

This quarterly report is not subject to the quarterly review.

Notes for using forecasts information, etc.

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.

- 2 -

The Gunma Bank,Ltd.

Table of Contents

1.	Qualitative Information
(1)	Qualitative Information related to the Results of Operations	･･･････････････････････････････････････	4
(2)	Qualitative Information related to the Financial Conditions	･･･････････････････････････････････････	4
(3)	Qualitative Information related to the Consolidated Earnings Projections ･･････････････････････････	4

2. Quarterly Consolidated Financial Statements

1. Quarterly Consolidated Balance Sheets ･･････････････････････････････････････････････････････････ 5

(2) Quarterly Consolidated Statements of Income and Comprehensive Income ･････････････････････････ 6

3. Notes to the Quarterly Consolidated Financial Statements

(Notes on Going Concern Assumption) ･･･････････････････････････････････････････････････････････ 7

(Nｏｔｅ on Significant Changes in The Amounts of Shareholders' Equity) ････････････････････････････	7
(Changes in accounting principles) ･･･････････････････････････････････････････････････････････････	7
(Additional Information) ･･････････････････････････････････････････････････････････････････････････	7
Supplementaly Information ･･････････････････････････････････････････････････････････････	8

- 3 -

The Gunma Bank,Ltd.

1. Qualitative Information

(1) Qualitative Information related to the Results of Operations

Operating results for the first quarter of the consolidated fiscal year under review were as follows. Ordinary income amounted to 44,767 million of yen , an increase of 5,475 million of yen year on year, mainly due to increases in interest income such as interest and dividends on securities. Ordinary expenses amounted to 27,672 million of yen, a decrease of 4,687 million of yen year on year, mainly due to decreases in other expenses such as net transfer to allowance for loan losses. As a result, ordinary profit amounted to 17,095 million of yen, an increase of 10,163 million of yen year on year. Also, profit attributable to owners of parent amounted to 11,467 million of yen,

an increase of 5,974 million of yen year on year.

(2) Qualitative Information related to the Financial Conditions

The financial status as of the end of the first quarter of the consolidated fiscal year under review was as follows. Total assets increased by 122.4 billion of yen to 10,738.2 billion of yen during the period under review, whereas total liabilities increased by 111.6 billion of yen to 10,179.2 billion of yen during the period under review.

Also, net assets increased by 10.8 billion of yen to 558.9 billion of yen during the period under review.

As for the main accounts, loans and bills discounted decreased by 31.0 billion of yen to 5,657.8 billion of yen during the period under review.

Securities decreased by 87.6 billion of yen to 2,314.7 billion of yen during the period under review. Deposits decreased by 6.0 billion of yen to 7,735.5 billion of yen during the period under review.

(3) Qualitative Information related to the Consolidated Earnings Projections

Consolidated business forecast for the six months ending September 30, 2021 and the fiscal year ending March 31, 2022 remains unchanged from the figures announced on May 12, 2021.

- 4 -

			The Gunma Bank,Ltd.
２．Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheets
			(Unit: million of yen)
		As of Mar. 31, 2021	As of Jun. 30, 2021
	Assets：
	Cash and due from banks	2,326,681	2,529,620
	Call loans and bills bought	-	5,529
	Monetary claims bought	5,621	5,433
	Trading securities	823	858
	Money held in trust	11,268	8,968
	Securities	2,402,460	2,314,775
	Loans and bills discounted	5,688,847	5,657,804
	Foreign exchanges	14,947	37,320
	Lease receivables and investments in leases	59,528	60,327
	Other assets	71,348	72,361
	Tangible fixed assets	69,463	68,890
	Intangible fixed assets	9,956	9,767
	Retirement benefit asset	6,631	7,080
	Deferred tax assets	1,571	1,485
	Customers' liabilities for acceptances and guarantees	9,632	9,166
	Allowance for loan losses	(63,028)	(51,161)
	Total assets	10,615,756	10,738,229
	Liabilities：
	Deposits	7,741,661	7,735,589
	Negotiable certificates of deposit	167,674	237,519
	Call money and bills sold	37,087	33,174
	Securities sold under repurchase agreements	4,992	4,315
	Cash collateral received for securities lent	669,024	612,525
	Borrowed money	1,291,081	1,410,741
	Foreign exchanges	162	120
	Bonds payable	50,000	50,000
	Borrowed money from trust account	8,953	9,622
	Other liabilities	66,683	50,626
	Provision for bonuses for directors (and other officers)	56	14
	Retirement benefit liability	368	374
	Provision for retirement benefits for directors (and other officers)	244	232
	Provision for reimbursement of deposits	533	476
	Provision for point card certificates	144	151
	Provision for contingent loss	900	950
	Reserves under special laws	0	0
	Deferred tax liabilities	10,636	15,905
	Deferred tax liabilities for land revaluation	7,823	7,767
	Acceptances and guarantees	9,632	9,166
	Total liabilities	10,067,663	10,179,274
	Net assets：
	Share capital	48,652	48,652
	Capital surplus	29,581	29,581
	Retained earnings	391,382	399,514
	Treasury shares	(8,838)	(8,838)
	Total shareholders' equity	460,778	468,910
	Valuation difference on available-for-sale securities	71,541	73,622
	Deferred gains or losses on hedges	(231)	(185)
	Revaluation reserve for land	13,715	14,070
	Foreign currency translation adjustment	(98)	118
	Remeasurements of defined benefit plans	2,387	2,418
	Total accumulated other comprehensive income	87,314	90,044
	Total net assets	548,093	558,954
	Total liabilities and net assets	10,615,756	10,738,229

- 5 -