Shinsei Bank : Upward Revision of FY2020 Full-Year Earnings Forecast and Forecast for Year-End Dividend

I N F O R M A T I O N

For Immediate Release

Company Name: Shinsei Bank, Limited

Name of Representative: Hideyuki Kudo

President and CEO

(Code: 8303, TSE First Section)

Upward Revision of FY2020 Full-Year Earnings Forecast and

Forecast for Year-End Dividend

Tokyo (Thursday, May 6, 2021) --- Shinsei Bank, Limited (Chuo-ku, Tokyo, President and Chief Executive Officer: Hideyuki Kudo; hereinafter, "Shinsei Bank;"), announced an upward revision of the FY2020 full year earnings forecast reflecting the recent financial performance trends in comparison with the previous forecast which was released at the time of the FY2020 first half results announcement on November 12, 2020. It has also revised upwards the forecast for year-end dividend per share.

1. Revisions of the financial performance forecast for FY2020

1. Revision of the consolidated forecast for FY2020 (April 1, 2020 to March 31, 2021)

				Profit attributable to			Basic EPS
				owners of the parent
	Previous forecast (A)			Millions of yen		Yen
		34,000	151.47
	Revised forecast (B)		45,000	201.67
	Difference (B-A)		11,000
	Difference (%)		32.4
	(Reference) Consolidated	results for	45,575	190.59
	the fiscal year ended March 31, 2020

1. Revision of the non-consolidated forecast for FY2020 (April 1, 2020 to March 31, 2021)
   Shinsei Bank has also revised non-consolidated net income forecast from ¥27.5 billion to ¥34.0 billion (up +23.6% from the previous forecast) as well as ordinary business profit forecast from ¥39.0 billion to ¥42.0 billion (+7.7%).

2. Forecast for year-end dividend

		Cash dividends per share, yen
	End of 1H		End of 2H		Total
Previous forecast			Undecided		-
Current forecast			12.00		12.00
Actual results	0.00				0.00
(Reference)Results for the
fiscal year ended March	0.00		10.00		10.00
31, 2020

3. Reasons for Revision of Earnings Forecast and Forecast for Year-End Dividend

As announced in the news release "Applying for the Tender Offer Bid for Jih Sun Financial in Taiwan" dated March 24, 2021, Shinsei Bank applied for the tender offer bid by Fubon Financial Holding Co., Ltd. for the common shares of Jih Sun Financial Holding Co., Ltd., which it held through a consolidated subsidiary. As a result of the completion of the transfer of shares and settlement of the proceeds from tendering the shares on March 30, 2021, it recorded a gain on sales (extraordinary profit) of approximately ¥9.7 billion (after deducting taxes and expenses) in the consolidated financial

- 1 -

statements for the fiscal year ended March 31, 2021. The difference from the estimated gain on sale of approximately ¥7.5 billion announced on March 24, 2021 is mainly due to fluctuations in foreign exchange rate. In addition to the impact of this, overall operating expenses declined due to the impact of the novel Coronavirus and restrained business operations, as well as lower net credit costs reflecting improved credit quality in Shinsei Financial Co., Ltd. As a result, Shinsei Bank revises the financial forecasts as showed in the table above.

The non-consolidated earnings forecasts have also been revised as described above as it expects a decrease in tax expenses due to a review of the probability of crystallizing deferred tax assets in accordance with the sale of shares described above in addition to a decline of operating expenses.

Forecast for the year-end dividend had not been decided earlier as Shinsei Bank determines its shareholder return policy after considering its current business conditions and market trends. Considering the current conditions including the upward revision of the forecast for FY2020, the year- end dividend forecast has been set at 12 yen per share.

4. Scheduled date of financial results announcement Thursday, May 13, 2021

NOTE) The above forecasts are based on information available as of the date of publication of this release. Actual results may differ from the above forecasts.

End

******

Shinsei Bank is a leading diversified Japanese financial institution providing a various range of financial products and services to both institutional and individual customers. The Bank has a network of outlets throughout Japan and is committed in its pursuit of uncompromising levels of integrity and transparency in all of its activities in order to earn the trust of its customers, staff and shareholders. The Bank is committed to delivering long-term profit growth and increasing value for all its

stakeholders. News and other information about Shinsei Bank is available at https://www.shinseibank.com/corporate/en/index.html

For further information, please contact:

Group Investor Relations & Corporate Communications Division

Shinsei Bank, Limited (www.shinseibank.com) [e-mail]

- 2 -