Hokuhoku Financial : Financial Data 2023(FY2022)

Financial Data

2023

Year ended March 31, 2023

CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET………………………………………	1
CONSOLIDATED STATEMENT OF INCOME… …………………………	2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME… ……	2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY………………	3
CONSOLIDATED STATEMENT OF CASH FLOWS… ……………………	5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS… ……………	6

INDEPENDENT AUDITOR'S REPORT… …………………………………… 43

Hokuhoku Financial Group, Inc.

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET

Hokuhoku Financial Group, Inc. and Consolidated Subsidiaries

	Millions of yen		Thousands of
		U.S. dollars (Note 1)
March 31	2023	2022		2023
Assets
Cash and due from banks (Note 5)	¥ 4,357,148	¥ 5,471,090	$ 32,630,483
Call loans and bills bought	52,344	26,731	392,003
Monetary claims bought (Notes 8 and 31)	15,519	21,217	116,223
Trading assets (Notes 6, 8, 31 and 32 )	2,220	3,454	16,626
Money held in trust (Note 7)	18,248	18,474	136,665
Securities (Notes 8, 14, and 31)	1,854,257	2,206,987	13,886,449
Loans and bills discounted (Notes 9, 14, 15, and 31)	9,533,464	9,193,283	71,395,673
Foreign exchanges (Note 10)	17,975	25,628	134,619
Other assets (Notes 14 and 32)	201,393	201,789	1,508,226
Tangible fixed assets (Note 11)	100,013	99,135	748,996
Intangible assets (Note 12)	8,299	10,323	62,153
Assets for retirement benefits (Note 18)	7,696	10,839	57,638
Deferred tax assets (Note 28)	7,598	3,275	56,908
Customers' liabilities for acceptances and guarantees (Note 13)	63,881	60,310	478,409
Allowance for loan losses (Note 3)	(67,361)	(72,470)	(504,464)
Total assets	¥ 16,172,700	¥17,280,071	$ 121,116,607

Liabilities and equity

Liabilities

Deposits (Notes 14, 16, and 31) Call money and bills sold (Note 14) Payables under repurchase agreements

Payables under securities lending transactions (Note 14) Trading liabilities (Notes 6 and 32 )

Borrowed money (Notes 14, 17, and 31) Foreign exchanges (Note 10)

Borrowed money from trust account Other liabilities (Note 32)

Liability for retirement benefits (Note 18)

Reserve for directors' and audit & supervisory board members' retirement benefits Reserve for contingent losses

Reserve for reimbursement of deposits Reserve under the special laws Deferred tax liabilities (Note 28)

Deferred tax liabilities for revaluation (Note 28) Acceptances and guarantees (Note 13)

Total liabilities

Equity (Notes 19, 20, and 22) Capital stock

Capital surplus

Stock acquisition rights (Notes 21 and 22) Retained earnings

Treasury stock

Accumulated other comprehensive income

Valuation difference on available-for-sale securities (Note 8) Deferred gains (losses) on hedges

Revaluation reserve for land (Note 11) Defined retirement benefit plans (Note 18)

Total

Non-controlling interests

Total equity

Total liabilities and equity

See notes to consolidated financial statements.

¥ 13,513,726	¥ 13,202,604	$ 101,203,670
162,020	318,920	1,213,365
10,430	21,123	78,116
313,271	288,815	2,346,073
266	651	1,995
1,352,450	2,608,500	10,128,437
735	647	5,509
5,230	4,514	39,169
119,823	125,967	897,351
3,407	3,703	25,516
83	123	624
1,063	943	7,963
1,385	1,495	10,376
10	10	81
7,759	13,909	58,113
4,941	4,984	37,010
63,881	60,310	478,409
15,560,488	16,657,226	116,531,777
70,895	70,895	530,929
119,778	125,128	897,013
416	500	3,119
374,971	359,045	2,808,145
(675)	(852)	(5,058)
37,152	56,225	278,232
(195)	325	(1,465)
7,694	7,791	57,622
(1,419)	338	(10,628)
608,617	619,396	4,557,909
3,594	3,449	26,921
612,212	622,845	4,584,830
¥ 16,172,700	¥17,280,071	$ 121,116,607

Hokuhoku Financial Group, Inc. Financial Data 2023

1

CONSOLIDATED STATEMENT OF INCOME

Hokuhoku Financial Group, Inc. and Consolidated Subsidiaries

	Millions of yen		Thousands of
		U.S. dollars (Note 1)
Year ended March 31	2023	2022		2023
Income
Interest income:
Interest on loans and discounts	¥83,035	¥82,578	$621,850
Interest and dividends on securities	20,763	16,353	155,499
Interest on receivables under resale agreements	(9)	―	(73)
Interest on receivables under securities borrowing transactions	43	―	324
Interest on deposits with other banks	4,795	5,504	35,910
Other interest income	485	362	3,635
Trust fees	30	36	227
Fees and commissions (Note 33)	40,235	39,571	301,323
Trading income	860	1,627	6,443
Other ordinary income (Note 24)	18,872	20,067	141,336
Other income (Note 26)	18,817	15,683	140,920
Total income	187,929	181,785	1,407,394
Expenses
Interest expense:	875		6,560
Interest on deposits	435
Interest on payables under repurchase agreements	390	9	2,922
Interest on payables under securities lending transactions	5,444	390	40,773
Interest on borrowings and rediscounts	1,325	7	9,926
Other interest expense	1,589	642	11,906
Fees and commissions	14,508	15,455	108,656
Other ordinary expenses (Note 25)	35,892	19,660	268,799
General and administrative expenses	83,683	87,273	626,701
Provision of allowance for loan losses	830	12,874	6,219
Other expenses (Note 27)	17,656	11,801	132,229
Total expenses	162,197	148,552	1,214,691
Income before income taxes	25,731	33,233	192,703
Income taxes (Note 28):	3,056		22,892
Current	11,656
Deferred	1,117	890	8,370
Net income	21,557	20,685	161,441
Net income attributable to non-controlling interests	121	158	912
Net income attributable to owners of the parent	¥21,435	¥20,526	$160,529
Per share of common stock (Notes 2-tand 23)		Yen		U.S. dollars
¥159.18		$1.19
Basic net income	¥147.47
Diluted net income	158.63	146.95	1.19
Cash dividends applicable to the year	37.00	35.00	0.28

See notes to consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Hokuhoku Financial Group, Inc. and Consolidated Subsidiaries

	Millions of yen			Thousands of
			U.S. dollars (Note 1)
Year ended March 31	2023	2022		2023
Net income	¥ 21,557	¥20,685	$ 161,441
Other comprehensive income (loss) (Note 29)	(21,327)	(21,974)	(159,719)
Valuation difference on available-for-sale securities	(19,118)	(24,707)	(143,177)
Deferred gains (losses) on hedges	(521)	386	(3,902)
Defined retirement benefit plans	(1,757)	2,324	(13,163)
Share of other comprehensive income (loss) of associates accounted for
using equity method	69	21	523
Total comprehensive income (loss)	¥229	¥(1,288)	$1,722
Comprehensive income (loss) attributable to owners of the parent	83	(1,474)	628
Comprehensive income (loss) attributable to non-controlling interests	146	185	1,094

See notes to consolidated financial statements.

2 Hokuhoku Financial Group, Inc. Financial Data 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Hokuhoku Financial Group, Inc. and Consolidated Subsidiaries

	Thousands				Millions of yen
	Issued	Issued			Stock
	number of	number of	Capital	Capital	Retained	Treasury
	shares of	shares of	acquisition
	common stock preferred stock	stock	surplus	rights	earnings	stock
BALANCE, APRIL 1, 2021	132,163	85,955		¥70,895	¥133,905	¥538	¥344,103	¥(1,180)
Cash dividends							(5,882)
Net income attributable to owners of the parent							20,526
Purchases of treasury stock								(8,606)
Disposals of treasury stock					0			155
Retirement of treasury stock	(3,392)	(10,743)			(8,778)			8,778
Reversal of revaluation reserve for land							297
Net changes in the year						(38)
BALANCE, MARCH 31, 2022
128,770	75,212		¥70,895	¥125,128	¥500	¥359,045	¥(852)
Cash dividends							(5,606)
Net income attributable to owners of the parent							21,435
Purchases of treasury stock								(5,375)
Disposals of treasury stock					21			181
Retirement of treasury stock		(10,743)			(5,371)			5,371
Reversal of revaluation reserve for land							97
Net changes in the year						(83)
BALANCE, MARCH 31, 2023	128,770	64,469		¥70,895	¥119,778	¥416	¥374,971	¥(675)
					Millions of yen
	Accumulated other comprehensive income
	Valuation	Deferred	Revaluation	Defined		Non-
	difference on		Total
	available-for-sale	gains (losses)	reserve for	retirement	Total	controlling
	securities	on hedges	land	benefit plans	interests	equity
BALANCE, APRIL 1, 2021	¥80,937	¥(61)		¥8,088	¥(1,986)	¥635,241	¥3,263	¥638,504
Cash dividends						(5,882)		(5,882)
Net income attributable to owners of the parent						20,526		20,526
Purchases of treasury stock						(8,606)		(8,606)
Disposals of treasury stock						156		156
Retirement of treasury stock						─		─
Reversal of revaluation reserve for land						297		297
Net changes in the year	(24,712)	386		(297)	2,324	(22,336)	185	(22,151)
BALANCE, MARCH 31, 2022	¥56,225	¥325		¥7,791	¥338	¥619,396	¥3,449	¥622,845
Cash dividends						(5,606)		(5,606)
Net income attributable to owners of the parent						21,435		21,435
Purchases of treasury stock						(5,375)		(5,375)
Disposals of treasury stock						202		202
Retirement of treasury stock						─		─
Reversal of revaluation reserve for land						97		97
Net changes in the year	(19,072)	(521)		(97)	(1,757)	(21,532)	145	(21,386)
BALANCE, MARCH 31, 2023	¥37,152	¥(195)		¥7,694	¥(1,419)	¥608,617	¥3,594	¥612,212

Hokuhoku Financial Group, Inc. Financial Data 2023

3

		Thousands of U.S. dollars (Note 1)
	Capital	Capital	Stock	Retained	Treasury
	acquisition
	stock	surplus	rights	earnings	stock
BALANCE, MARCH 31, 2022	$530,929	$937,078	$3,747	$2,688,874	$(6,387)
Cash dividends				(41,986)
Net income attributable to owners of the parent				160,529
Purchases of treasury stock					(40,256)
Disposals of treasury stock		162			1,358
Retirement of treasury stock		(40,227)			40,227
Reversal of revaluation reserve for land				728
Net changes in the year			(628)
BALANCE, MARCH 31, 2023	$530,929	$897,013	$3,119	$2,808,145	$(5,058)
			Thousands of U.S. dollars (Note 1)
	Accumulated other comprehensive income
	Valuation	Deferred	Revaluation	Defined		Non-
	difference on		Total
	available-for-sale	gains (losses)	reserve for	retirement	Total	controlling
	securities	on hedges	land	benefit plans	interests	equity
BALANCE, MARCH 31, 2022	$421,068	$2,437	$58,350	$2,535	$4,638,631	$25,830	$4,664,461
Cash dividends					(41,986)		(41,986)
Net income attributable to owners of the parent					160,529		160,529
Purchases of treasury stock					(40,256)		(40,256)
Disposals of treasury stock					1,520		1,520
Retirement of treasury stock					─		─
Reversal of revaluation reserve for land					728		728
Net changes in the year	(142,836)	(3,902)	(728)	(13,163)	(161,257)	1,091	(160,166)
BALANCE, MARCH 31, 2023	$278,232	$(1,465)	$57,622	$(10,628)	$4,557,909	$26,921	$4,584,830

See notes to consolidated financial statements.

4 Hokuhoku Financial Group, Inc. Financial Data 2023