Shiga Bank : Consolidated Financial Results for the Nine Months Ended December 31,2021

Consolidated Financial Results

for the Nine Months Ended December 31, 2021

[Japanese GAAP]

January 28, 2022

Company name: THE SHIGA BANK, LTD.

Stock exchange listing: Tokyo Stock Exchange

Code number: 8366

URL: https://www.shigagin.com

Representative: Shojiro Takahashi, President & CEO

Contact: Akihisa Hida, Managing Executive Officer and General Manager of General Planning Dept.

Phone: [phone]

Scheduled date of filing quarterly securities report: February 14, 2022

Establishment of specified transaction account: None

Scheduled date of commencing dividend payments: -

Availability of supplementary explanatory materials on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 1, 2021 - December 31,

2021)
(1) Consolidated Operating Results (Cumulative)	(% indicates changes from the previous corresponding period.)
	Ordinary income	Ordinary profit	Net income attributable to
	owners of the parent
Nine months ended	Million yen		%	Million yen	%	Million yen	%
77,290		21.8	26,690	113.4	19,133	68.0
December 31, 2021
Nine months ended	63,466		(5.4)	12,509	7.5	11,389	1.0
December 31, 2020
(Note) Comprehensive income: Nine months ended December 31, 2021: ¥15,032 million [(86.3)%]
	Nine months ended December 31, 2020: ¥109,365 million [310.4%]
	Net income per share	Diluted net income per
	share
Nine months ended			Yen		Yen
		387.43		387.13
December 31, 2021
Nine months ended			226.77		216.74
December 31, 2020
(2) Consolidated Financial Position
	Total assets		Total equity	Capital ratio
		Million yen		Million yen		%
As of December 31, 2021		7,501,731		507,435		6.8
As of March 31, 2021		7,793,748		495,469		6.4

(Reference) Capital: As of December 31, 2021: ¥507,336 million As of March 31, 2021: ¥495,384 million

(Note) "Capital ratio" is calculated by dividing (total equity at the end of the period − stock acquisition rights at the end of the period) by total assets at the end of the period.

"Capital ratio" herein is not the capital ratio specified by the regulatory notices pertaining to capital adequacy ratio.

2. Dividends

			Annual dividends per share
		1st quarter-end	2nd quarter-end		3rd quarter-end		Year-end	Total
		Yen	Yen		Yen		Yen	Yen
Fiscal year ended		-	17.50			-		22.50	40.00
March 31, 2021
Fiscal year ending		-	17.50			-
March 31, 2022
Fiscal year ending
March 31, 2022								42.50	60.00
(Forecast)
(Note) Revision to the forecast for dividends announced most recently: None

(Notes)

1. Breakdown of the 2nd quarter-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend of ¥17.50
   Breakdown of the year-end dividend for the fiscal year ended March 31, 2021: Ordinary dividend of ¥17.50, special dividend of ¥5.00
2. Breakdown of the 2nd quarter-end dividend for the fiscal year ending March 31, 2022: Ordinary dividend of ¥17.50
   Breakdown of the year-end dividend for the fiscal year ending March 31, 2022 (forecast): Ordinary dividend of ¥17.50, special dividend of ¥25.00
3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March

31, 2022)

(% indicates changes from the previous corresponding period.)

	Ordinary profit		Net income attributable to	Net income per share
		owners of the parent
	Million yen	%	Million yen	%	Yen
Full year	25,000	125.8	16,300	42.4	330.91

(Note) Revision to the financial results forecast announced most recently: None

* Notes:

1. Changes in significant subsidiaries during the period under review (Changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Adoption of special accounting treatment for preparing quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatement: None

(Note) For details, please refer to page 8 of the attachment, "2. Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes to Quarterly Consolidated Financial Statements, (Changes in accounting policies)."

(4) Total number of issued and outstanding shares (common shares)

1)	Total number of issued and outstanding shares at the end of the period (including treasury shares):
	As of December 31, 2021:	53,090,081 shares
	As of March 31, 2021:	53,090,081 shares
2)	Total number of treasury shares at the end of the period:
	As of December 31, 2021:	3,831,247 shares
	As of March 31, 2021:	3,345,006 shares

3) Average number of shares during the period (nine months):

Nine months ended December 31, 2021:	49,386,135 shares
Nine months ended December 31, 2020:	50,224,070 shares

• These quarterly financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
• Explanation of the proper use of financial results forecast and other notes

･Forward-looking statements, such as financial results forecasts, made in this document are based on information currently available to the Bank and certain assumptions deemed reasonable. Actual results, etc. may differ significantly due to various factors.

Table of Contents - Attachments
1. Qualitative Information ..................................................................................................................................	2
(1)	Explanation of Operating Results ..............................................................................................................	2
(2)	Explanation of Financial Position ..............................................................................................................	2
(3)	Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ..........	3
2. Quarterly Consolidated Financial Statements and Primary Notes .................................................................	4
(1)	Quarterly Consolidated Balance Sheet .......................................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income .............................................	6
	Quarterly Consolidated Statements of Income ......................................................................................	6
	Quarterly Consolidated Statement of Comprehensive Income .............................................................	7
(3)	Notes to Quarterly Consolidated Financial Statements ..............................................................................	8
	(Notes on going concern assumption) ...................................................................................................	8
	(Notes in the case of significant changes in shareholders' equity) ........................................................	8
	(Changes in accounting policies) ...........................................................................................................	8
	(Change in presentation) .......................................................................................................................	8
	(Additional information) .......................................................................................................................	9
	(Significant subsequent events) .............................................................................................................	9

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1. Qualitative Information

(1) Explanation of Operating Results

Due to the outbreak of the novel coronavirus infection, the challenging situation has continued in a wide range of industries, and we expect that some more time will be required for a full-scale recovery as corporate activities and consumption activities are restricted to some extent until vaccines and therapeutic medications are widely available worldwide.

The pandemic strongly urged an immediate response to previously recognized issues such as "sustainability" and "digitalization." With the declining birthrate and aging population, and falling population as well as the rapidly changing population composition, social structure, and economic structure against the backdrop of technological innovations such as IoT and AI, the business management of regional banks are now at a historic turning point. The future is not an extension of conventional ideas and past business models, and there is a need to build new business models.

Under these circumstances, in order to further increase corporate value and existential value, the Bank has implemented the 7th Medium-Term Business Plan, "Define a future and realize a dream" (Period: 5 years, April 2019

• March 2024). The Group is making all-out efforts toward the realization of a "Sustainability Design Company" with a strong desire to "plan and create sustainable development of customers and regional communities, and go beyond the conventional framework and ideas."
  As a result of these efforts, the operating results for the nine months under review were as follows.
  Ordinary income was ¥77,290 million, an increase of ¥13,823 million year-on-year. This was mainly due to an increase in other income (an increase of ¥11,361 million year-on-year) due to an increase in gains on sales of stocks and other securities.
  On the other hand, ordinary expenses were ¥50,599 million, a decrease of ¥357 million year-on-year. This was due to decreases in interest expenses (a decrease of ¥435 million year-on-year), fees and commissions (a decrease of ¥455 million year-on-year), other operating expenses (a decrease of ¥796 million year-on-year), and other expenses (a decrease of ¥2,349 million year-on-year), respectively, despite an increase in general and administrative expenses (an increase of ¥3,679 million year-on-year) due in part to investments related to next-generation core systems.
  As a result, ordinary profit for the nine months under review increased by ¥14,181 million year-on-year to ¥26,690 million, and net income attributable to owners of the parent increased by ¥7,744 million year-on-year to ¥19,133 million.

(2) Explanation of Financial Position

The financial position at the end of the third quarter under review was as follows.

The balance of total assets was ¥7,501,731 million, a decrease of ¥292,016 million from the end of the previous fiscal year.

With regards to the main account balance of assets, investment securities stood at ¥1,445,022 million (a decrease of ¥141,483 million from the end of the previous fiscal year), and loans and bills discounted totaled ¥4,029,941 million (an increase of ¥28,242 million from the end of the previous fiscal year.)

Meanwhile, total liabilities were ¥6,994,296 million, a decrease of ¥303,982 million from the end of the previous fiscal year.

With regards to the main account balance of liabilities, deposits totaled ¥5,516,806 million (an increase of ¥117,954 million from the end of the previous fiscal year), negotiable certificates of deposit were ¥44,840 million (a decrease of ¥4,720 million from the end of the previous fiscal year), call money was ¥71,407 million (a decrease of ¥444,670 million from the end of the previous fiscal year), payables under securities lending transactions were ¥255,644 million (a decrease of ¥17,009 million from the end of the previous fiscal year), and borrowed money was ¥946,214 million (an increase of ¥47,159 million from the end of the previous fiscal year).

Total equity amounted to ¥507,435 million, an increase of ¥11,965 million from the end of the previous fiscal year. This was mainly due to an increase of ¥17,052 million in retained earnings from the end of the previous fiscal year and an increase of ¥1,352 million in net unrealized gains on available-for-sale securities from the end of the previous fiscal year.

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