Shiga Bank : Consolidated Financial Results for the Six Months Ended September 30,2021(Interim Period)

Consolidated Financial Results

for the Six Months Ended September 30, 2021 (Interim Period)

[Japanese GAAP]

November 12, 2021

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: November 22, 2021

Scheduled date of commencing dividend payments: December 7, 2021

Establishment of specified transaction account: None

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 Six Months Ended September 30, 2021 (Interim Period: April 1, 2021

• September 30, 2021)

(1) Consolidated Operating Results	(% indicates changes from the previous corresponding period.)
	Ordinary income	Ordinary profit	Net income attributable to
	owners of the parent
Six months ended	Million yen	%	Million yen	%	Million yen	%
50,047	17.9	16,716	141.1	11,910	85.7
September 30, 2021
Six months ended	42,455	(5.0)	6,934	(3.0)	6,412	(25.7)
September 30, 2020
(Note) Comprehensive income: Six months ended September 30, 2021: ¥11,026 million [(80.2)%]
	Six months ended September 30, 2020: ¥55,744 million [872.1%]
	Net income per share	Diluted net income per
	share
Six months ended		Yen		Yen
	240.87		240.69
September 30, 2021
Six months ended		127.70		119.44
September 30, 2020
(2) Consolidated Financial Position
	Total assets	Total equity	Capital ratio
		Million yen		Million yen		%
As of September 30, 2021		7,425,874		504,287		6.8
As of March 31, 2021		7,793,748		495,469		6.4

(Reference) Capital: As of September 30, 2021: ¥504,193 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: Yes

(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	330.90

(Note) Revision to the financial results forecast announced most recently: Yes

* Notes:

1. Changes in significant subsidiaries during the period under review (Changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 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 10 of the attachment, "2. Interim Consolidated Financial Statements and Primary Notes, (4) Notes to Interim Consolidated Financial Statements, (Changes in accounting policies)."

1. 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 September 30, 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 September 30, 2021:	3,830,813 shares
As of March 31, 2021:	3,345,006 shares
3) Average number of shares during the period (interim period):
Six months ended September 30, 2021:	49,450,044 shares
Six months ended September 30, 2020:	50,220,191 shares

(Summary of Non-consolidated Financial Results)

1. Non-consolidated Financial Results for the Six Months Ended September 30, 2021 (Interim Period: April 1, 2021 - September 30, 2021)

(1) Non-consolidated Operating Results	(% indicates changes from the previous corresponding period.)
	Ordinary income	Ordinary profit	Net income
Six months ended	Million yen	%	Million yen	%	Million yen	%
44,394	25.0	16,233	138.6	11,767	79.1
September 30, 2021
Six months ended	35,510	(1.7)	6,804	15.2	6,569	(16.1)
September 30, 2020
	Net income per share
Six months ended		Yen
	237.98
September 30, 2021
Six months ended		130.82
September 30, 2020
(2) Non-consolidated Financial Position
	Total assets	Total equity	Capital ratio
		Million yen		Million yen		%
As of September 30, 2021		7,403,057		483,588		6.5
As of March 31, 2021		7,769,496		474,287		6.1

(Reference) Capital: As of September 30, 2021: ¥483,494 million As of March 31, 2021: ¥474,203 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. Non-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		Net income per share
	Million yen	%	Million yen	%	Yen
Full year	24,000	131.3	16,000	41.2	324.81

• These interim financial results are outside the scope of audit 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.

･The Bank falls under a company engaged in specified business (a company conducting a business as prescribed in Article 17-15, paragraph (2) of the Cabinet Office Order on Disclosure of Corporate Information) and has prepared interim consolidated financial statements and interim (non-consolidated) financial statements for the second quarterly accounting period.

Table of Contents - Attachments
1. Qualitative Information on Interim Financial Results ....................................................................................	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. Interim Consolidated Financial Statements and Primary Notes .....................................................................	4
(1)	Interim Consolidated Balance Sheet ..........................................................................................................	4
(2)	Interim Consolidated Statements of Income and Comprehensive Income .................................................	6
(3)	Interim Consolidated Statement of Changes in Equity ..............................................................................	8
(4)	Notes to Interim Consolidated Financial Statements ...............................................................................	10
	(Notes on going concern assumption) .................................................................................................	10
	(Changes in accounting policies) .........................................................................................................	10
	(Change in presentation) .....................................................................................................................	10
	(Additional information) .....................................................................................................................	11
	(Significant subsequent events) ...........................................................................................................	11
3. Interim Financial Statements ........................................................................................................................	12
(1)	Interim Balance Sheet ..............................................................................................................................	12
(2)	Interim Statements of Income ..................................................................................................................	14
(3)	Interim Statement of Changes in Equity ..................................................................................................	15

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1. Qualitative Information on Interim Financial Results

(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 interim accounting period under review were as follows. Ordinary income was ¥50,047 million, an increase of ¥7,592 million year-on-year. This was mainly due to an

1. increase in other income (an increase of ¥7,432 million year-on-year) due to an increase in gains on sales of stocks and other securities.

   On the other hand, ordinary expenses were ¥33,331 million, a decrease of ¥2,189 million year-on-year. This was mainly due to a decrease in other expenses (a decrease of ¥1,853 million year-on-year) due to a decrease in provision of allowance for loan losses.

   As a result, ordinary profit for the interim accounting period under review increased by ¥9,782 million year-on-year to ¥16,716 million, and net income attributable to owners of the parent increased by ¥5,498 million year-on-year to ¥11,910 million.

2. Explanation of Financial Position

The financial position at the end of the interim accounting period under review was as follows.

The balance of total assets was ¥7,425,874 million, a decrease of ¥367,874 million from the end of the previous fiscal year.

With regards to the main account balance of assets, investment securities stood at ¥1,507,440 million (a decrease of ¥79,066 million from the end of the previous fiscal year), and loans and bills discounted totaled ¥4,021,894 million (an increase of ¥20,196 million from the end of the previous fiscal year.)

Meanwhile, total liabilities were ¥6,921,586 million, a decrease of ¥376,692 million from the end of the previous fiscal year.

With regards to the main account balance of liabilities, deposits totaled ¥5,430,275 million (an increase of ¥31,423 million from the end of the previous fiscal year), negotiable certificates of deposit were ¥66,510 million (an increase of ¥16,950 million from the end of the previous fiscal year), call money was ¥76,398 million (a decrease of ¥439,678 million from the end of the previous fiscal year), payables under securities lending transactions were ¥309,988 million (an increase of ¥37,334 million from the end of the previous fiscal year), and borrowed money was ¥878,581 million (a decrease of ¥20,473 million from the end of the previous fiscal year).

Total equity amounted to ¥504,287 million, an increase of ¥8,817 million from the end of the previous fiscal year. This was mainly due to an increase of ¥10,691 million in retained earnings from the end of the previous fiscal year and an increase of ¥4,325 million in net unrealized gains on available-for-sale securities from the end of the previous fiscal year, despite a decrease of ¥4,565 million in deferred gains (losses) on derivatives under hedge accounting from the end of the previous fiscal year.

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