Daishi Hokuetsu Financial : Consolidated Financial Results for the Year Ended March 31,2025

Consolidated Financial Results for the Year Ended March 31, 2025

[Japanese GAAP]

May 9, 2025

Company name: Daishi Hokuetsu Financial Group, Inc. Listing: Tokyo Stock Exchange

Securities code: 7327

URL: https://www.dhfg.co.jp/

Representative: Michiro Ueguri President and Representative Director

Inquiries: Yasuto Mishima General Manager of Corporate Planning Division Telephone: +81-25-224-7111

Scheduled date of annual general meeting of shareholders: June 25, 2025 Scheduled date to commence dividend payments: June 2, 2025 Scheduled date to file annual securities report: June 23, 2025

Trading accounts: None

Preparation of supplementary material on financial results: Yes Holding of financial results briefing: Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

   1. Consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Ordinary revenues		Ordinary profit		Profit attributable to owners of parent
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 194,646 182,058	% 6.9 22.3	Millions of yen 41,112 30,868	% 33.1 23.2	Millions of yen 29,349 21,203	% 38.4 19.3

      (Note) Comprehensive income:	Fiscal year ended March 31, 2025:	¥	(11,612) million	[	-%]
      	Fiscal year ended March 31, 2024:	¥	94,399 million	[	-%]

      	Basic earnings per share	Diluted earnings per share	Rate of return on equity	Ordinary profit to total assets ratio	Ordinary profit to ordinary revenues ratio
      Fiscal year ended	Yen	Yen	%	%	%
      March 31, 2025	335.91	-	5.9	0.3	21.1
      March 31, 2024	237.35	-	4.6	0.2	16.9

      (Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended March 31, 2025: ¥ - million

      Fiscal year ended March 31, 2024: ¥ - million (Notes)1.The company conducted a 2-for-1 stock split effective October 1, 2024. Basic earnings per share is calculated on the

      assumption that the stock split was carried out at the beginning of the previous consolidated fiscal year.

2. The figures for the fiscal year ending March 2024 reflect retrospective application due to changes in accounting policies. For details of the changes in accounting policies, please refer to the attached material on page 11.

1. Consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   As of March 31, 2025 March 31, 2024	Millions of yen 10,977,796 11,138,009	Millions of yen 478,870 499,902	% 4.3 4.4	Yen 5,487.84 5,706.68

   (Reference) Equity: As of March 31, 2025: ¥ 478,864 million

   As of March 31, 2024: ¥ 499,883 million

   (Notes)1.The "Capital adequacy ratio" is calculated by dividing (total net assets at the end of the period - non-controlling interests at the end of the period) by total assets at the end of the period. Please note that this "Capital adequacy ratio" is not the equity ratio prescribed in the notification of equity ratio.

   1. The company conducted a 2-for-1 stock split effective October 1, 2024. Net assets per share is calculated on the assumption that the stock split was carried out at the beginning of the previous consolidated fiscal year.

   2. The figures for the fiscal year ending March 2024 reflect retrospective application due to changes in accounting policies. For details of the changes in accounting policies, please refer to the attached material on page 11.

2. Consolidated Cash Flows

1. Dividends

   	Annual dividends					Total dividends	Payout ratio (consolidated)	Dividends to net assets (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Year-end	Total
   Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   March 31, 2024	-	70.00	-	75.00	145.00	6,535	30.8	1.4
   March 31, 2025	-	112.00	-	75.00	-	11,687	39.8	2.3
   Fiscal year ending March 31, 2026 (Forecast)	-	75.00	-	75.00	150.00		40.5

   (Notes)1.Breakdown of the annual dividends for the fiscal year ending March 31,2024

   2nd quarter end dividend : ordinary dividend 65.00 yen , commemorative dividend 5.00 yen Year end dividend : ordinary dividend 70.00 yen , commemorative dividend 5.00 yen

   1. The company conducted a 2-for-1 stock split effective October 1, 2024. The dividend amounts stated for the second quarter and earlier of the fiscal year ending March 2025 are the actual dividend amounts before the stock split. The year-end dividend amount for the fiscal year ending March 2025 is stated at the amount after the stock split, and the total annual dividends are shown as "-" as they cannot be simply totaled due to the implementation of the stock split.

   2. The total dividend amount includes the dividend payment amounts for the trust accounts of the trust-type stock compensation system, the employee stock ownership plan dedicated trust (E-Ship Trust) (103 million yen for the fiscal year ended March 2024 and 263 million yen for the fiscal year ended March 2025). The dividend payout ratio is calculated by dividing this total dividend amount by net income attributable to parent company shareholders.

2. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2026 (April 1, 2025 to March 31, 2026)

(Percentages indicate year-on-year changes.)

1. Changes in accounting policies, changes in accounting estimates, and restatement

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement: None

2. Number of issued shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares): March 31, 2025: 91,885,956 shares

      March 31, 2024: 91,885,956 shares

   2. Number of treasury shares at the end of the period:

      March 31, 2025: 4,626,872 shares

      March 31, 2024: 4,289,842 shares

   3. Average number of shares outstanding during the period:

Fiscal Year ended March 31, 2025: 87,370,252 shares

Fiscal Year ended March 31, 2024: 89,329,990 shares

(Note)The company conducted a 2-for-1 stock split effective October 1, 2024. The number of shares issued at the end of the period (including treasury shares), the number of treasury shares at the end of the period and the average number of shares during the period are calculated on the assumption that the share split was carried out at the beginning of the previous consolidated fiscal year.

(Reference) Overview of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2025 (April 1, 2024 to March 31, 2025)

   1. Non-consolidated Operating Results (Percentages indicate year-on-year changes.)

      	Operating revenues		Operating profit		Ordinary profit		Net income
      Fiscal year ended March 31, 2025 March 31, 2024	Millions of yen 9,635 8,469	% 13.7 1.7	Millions of yen 8,474 7,490	% 13.1 0.6	Millions of yen 8,537 7,506	% 13.7 0.8	Millions of yen 8,577 7,992	% 7.3 7.9

      	Basic earnings per share	Diluted earnings per share
      Fiscal year ended	Yen	Yen
      March 31, 2025	98.17	-
      March 31, 2024	89.47	-

      (Note)The company conducted a 2-for-1 stock split effective October 1, 2024. Basic earnings per share is calculated on the assumption that the stock split was carried out at the beginning of the previous non-consolidated fiscal year.

   2. Non-consolidated Financial Position

   	Total assets	Net assets	Capital adequacy ratio	Net assets per share
   As of March 31, 2025 March 31, 2024	Millions of yen 324,235 325,444	Millions of yen 320,326 321,160	% 98.7 98.6	Yen 3,670.97 3,666.38

   (Reference) Equity: As of March 31, 2025: ¥ 320,326 million

   As of March 31, 2024: ¥ 321,160 million

   (Notes)1.The "Capital adequacy ratio" is calculated by dividing (total net assets at the end of the period) by total assets at the end of the period. Please note that this "Capital adequacy ratio" is not the equity ratio prescribed in the notification of equity ratio.

2. The company conducted a 2-for-1 stock split effective October 1, 2024. Net assets per share is calculated on the assumption

that the stock split was carried out at the beginning of the previous non-consolidated fiscal year.

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

• Proper use of earnings forecasts, and other special matters

The descriptions of future prospects such as business performance outlook contained in this document are based on information currently available to the Company and certain reasonable assumptions that the Company believes are rational, and are not intended to promise achievement of them as the Company's commitment. Actual business performance may greatly vary from the outlook due to various factors.

[Table of contents]

1. Consolidated financial statements and notes •••••••••••••••••••••••••••••••••2

   1. Consolidated balance sheets •••••••••••••••••••••••••••••••••••••••••••2

   2. Consolidated statements of income and comprehensive income ••••••••••••••••4

   3. Consolidated statements ofchanges in Equity••••••••••••••••••••••••••••••6

   4. Consolidated statements ofcash flows •••••••••••••••••••••••••••••••••••8

   5. Notes to consolidated financial statements ••••••••••••••••••••••••••••••••10

      (Note on going concern assumption) •••••••••••••••••••••••••••••••••••••10

      (Additional information) ••••••••••••••••••••••••••••••••••••••••••••••10

      (Changes in accounting policy) •••••••••••••••••••••••••••••••••••••••••11

      (Segment information) •••••••••••••••••••••••••••••••••••••••••••••••11

      (Per share information) •••••••••••••••••••••••••••••••••••••••••••••••13

      (Significant subsequent events) •••••••••••••••••••••••••••••••••••••••••13

2. Non-consolidated financial statements •••••••••••••••••••••••••••••••••••••16

   1. Non-consolidated balance sheets •••••••••••••••••••••••••••••••••••••••16

   2. Non-consolidated statements of income ••••••••••••••••••••••••••••••••••18

   3. Non-consolidated statements of changes in Equity••••••••••••••••••••••••••19

Financial results for the fiscal year ended march 31, 2025 presentation material

1. Consolidated financial statements and notes

   1. Consolidated balance sheets

      (Millions of yen)

      As of March 31, 2024 As of March 31, 2025
      Assets
      Cash and due from banks	2,230,849	2,147,289
      Monetary claims bought	17,106	14,121
      Trading securities	2,452	2,243
      Money held in trust	4,966	4,947
      Securities	3,072,041	2,904,886
      Loans and bills discounted	5,430,402	5,580,589
      Foreign exchanges	29,802	26,461
      Other assets	256,040	206,444
      Tangible fixed assets	55,948	54,179
      Buildings, net	16,740	16,701
      Land	30,240	29,808
      Leased assets, net	161	227
      Construction in progress	342	253
      Other tangible fixed assets	8,463	7,188
      Intangible fixed assets	8,893	6,741
      Software	7,857	6,028
      Leased assets	33	17
      Other intangible fixed assets	1,002	695
      Retirement benefit asset	35,779	32,977
      Deferred tax assets	2,216	8,348
      Customers' liabilities for acceptances and guarantees	21,078	19,352
      Allowance for loan losses	(29,569)	(30,784)
      Total assets	11,138,009	10,977,796
      Liabilities
      Deposits	8,498,683	8,522,003
      Negotiable certificates of deposit	206,769	212,011
      Securities sold under repurchase agreements	202,184	166,011
      Cash collateral received for securities lent	375,528	367,662
      Borrowed money	1,167,666	965,660
      Foreign exchanges	385	749
      Borrowed money from trust account	14,813	20,198
      Other liabilities	124,318	208,763
      Provision for bonuses	2,565	2,581
      Provision for bonuses for directors (and other officers)	148	171
      Provision for share-based payments	774	931
      Retirement benefit liability	760	745
      Provision for retirement benefits for directors (and other officers)	47	53
      Provision for reimbursement of deposits	1,058	814
      Provision for contingent loss	1,935	1,726
      Provision for loss on guarantees	2	-
      Allowance for demolition of non-current assets	1,026	1,012
      Reserves under special laws	24	28
      Deferred tax liabilities	13,534	3,566
      Deferred tax liabilities for land revaluation	4,800	4,878
      Acceptances and guarantees	21,078	19,352
      Total liabilities	10,638,106	10,498,925

      (Millions of yen)

      As of March 31, 2024 As of March 31, 2025

      Net assets
      Share capital	30,000	30,000
      Capital surplus	102,980	102,987
      Retained earnings	309,972	331,103
      Treasury shares	(7,638)	(8,692)
      Total shareholders' equity	435,315	455,399
      Valuation difference on available-for-sale securities	12,026	(16,967)
      Deferred gains or losses on hedges	29,163	22,085
      Revaluation reserve for land	5,562	5,281
      Remeasurements of defined benefit plans	17,815	13,064
      Total accumulated other comprehensive income	64,568	23,464
      Non-controlling interests	19	6
      Total net assets	499,902	478,870
      Total liabilities and net assets	11,138,009	10,977,796

   2. Consolidated statements of income and comprehensive income

      Consolidated Statements of Income
      		(Millions of yen)
      	For the fiscal year	For the fiscal year
      	ended March 31, 2024	ended March 31, 2025
      Ordinary income	182,058	194,646
      Interest income	99,006	115,106
      Interest on loans and discounts	49,460	55,033
      Interest and dividends on securities	39,065	46,816
      Interest on call loans and bills bought	(15)	83
      Interest on deposits with banks	1,466	5,057
      Other interest income	9,030	8,114
      Trust fees	146	145
      Fees and commissions	36,033	36,090
      Other ordinary income	37,910	36,800
      Other income	8,961	6,504
      Recoveries of written off receivables	752	835
      Other	8,209	5,668
      Ordinary expenses	151,190	153,534
      Interest expenses	34,738	41,524
      Interest on deposits	560	4,910
      Interest on negotiable certificates of deposit	11	98
      Interest on call money and bills sold	(6)	-
      Interest expenses on securities sold under 9,650 9,291 repurchase agreements
      Interest expenses on cash collateral received for securities lent	16,683	19,274
      Interest on borrowings and rediscounts	27	50
      Other interest expenses	7,812	7,898
      Fees and commissions payments	10,772	10,976
      Other ordinary expenses	30,395	32,056
      General and administrative expenses	63,338	62,661
      Other expenses	11,943	6,314
      Provision of allowance for loan losses	3,274	4,047
      Other	8,669	2,267
      Ordinary profit	30,868	41,112
      Extraordinary income	1,512	393
      Gain on disposal of non-current assets	60	379
      Gain on step acquisitions	109	-
      Gain on bargain purchase	1,343	-
      Gain on reversal of provision for dismantling of fixed assets	-	13
      Extraordinary losses	2,622	330
      Loss on disposal of non-current assets	362	233
      Impairment losses	1,039	92
      Provision of reserve for financial instruments transaction liabilities	7	4
      Retirement benefit expenses	187	-
      Provision for demolition of non-current assets	1,026	-
      Profit before income taxes	29,758	41,176
      Income taxes - current	9,198	10,524
      Income taxes - deferred	(644)	1,300
      Total income taxes	8,553	11,825
      Profit	21,204	29,350
      Profit attributable to non-controlling interests	1	0
      Profit attributable to owners of parent	21,203	29,349

      Consolidated Statements of Comprehensive Income
      		(Millions of yen)
      	For the fiscal year ended March 31, 2024	For the fiscal year ended March 31, 2025
      Profit	21,204	29,350
      Other comprehensive income	73,194	(40,962)
      Valuation difference on available-for-sale securities	31,913	(28,994)
      Deferred gains or losses on hedges	28,875	(7,078)
      Revaluation reserve for land	-	(139)
      Remeasurements of defined benefit plans, net of tax	12,406	(4,750)
      Comprehensive income	94,399	(11,612)
      Comprehensive income attributable to
      Comprehensive income attributable to owners of 94,398 (11,613) parent

      Comprehensive income attributable to non-controlling

      interests 1 0

   3. Consolidated statements of changes in Equity

      For the fiscal year ended March 31, 2024

      (Millions of yen)

      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	30,000	102,980	294,499	(3,066)	424,413
      Changes during period
      Dividends of surplus			(5,892)		(5,892)
      Profit attributable to owners of parent			21,203		21,203
      Purchase of treasury shares				(4,728)	(4,728)
      Disposal of treasury shares		0		157	157
      Reversal of revaluation reserve for land			162		162
      Net changes in items other than shareholders' equity
      Total changes during period	-	0	15,472	(4,571)	10,901
      Balance at end of period	30,000	102,980	309,972	(7,638)	435,315

      	Accumulated other comprehensive income					Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
      Balance at beginning of period	(19,886)	288	5,724	5,409	(8,463)	-	415,949
      Changes during period
      Dividends of surplus							(5,892)
      Profit attributable to owners of parent							21,203
      Purchase of treasury shares							(4,728)
      Disposal of treasury shares							157
      Reversal of revaluation reserve for land							162
      Net changes in items other than shareholders' equity	31,913	28,875	(162)	12,406	73,032	19	73,051
      Total changes during period	31,913	28,875	(162)	12,406	73,032	19	83,952
      Balance at end of period	12,026	29,163	5,562	17,815	64,568	19	499,902

      For the fiscal year ended March 31, 2025

      (Millions of yen)

      	Shareholders' equity
      	Share capital	Capital surplus	Retained earnings	Treasury shares	Total shareholders' equity
      Balance at beginning of period	30,000	102,980	309,972	(7,638)	435,315
      Changes during period
      Dividends of surplus			(8,358)		(8,358)
      Profit attributable to owners of parent			29,349		29,349
      Purchase of treasury shares				(1,517)	(1,517)
      Disposal of treasury shares		0		464	464
      Reversal of revaluation reserve for land			140		140
      Change in ownership interest of parent due to transactions with non-controlling interests		5			5
      Net changes in items other than shareholders' equity
      Total changes during period	-	6	21,131	(1,053)	20,083
      Balance at end of period	30,000	102,987	331,103	(8,692)	455,399

      	Accumulated other comprehensive income					Non-controlling interests	Total net assets
      	Valuation difference on available-for-sale securities	Deferred gains or losses on hedges	Revaluation reserve for land	Remeasurements of defined benefit plans	Total accumulated other comprehensive income
      Balance at beginning of period	12,026	29,163	5,562	17,815	64,568	19	499,902
      Changes during period
      Dividends of surplus							(8,358)
      Profit attributable to owners of parent							29,349
      Purchase of treasury shares							(1,517)
      Disposal of treasury shares							464
      Reversal of revaluation reserve for land							140
      Change in ownership interest of parent due to transactions with non-controlling interests							5
      Net changes in items other than shareholders' equity	(28,994)	(7,078)	(280)	(4,750)	(41,103)	(12)	(41,115)
      Total changes during period	(28,994)	(7,078)	(280)	(4,750)	(41,103)	(12)	(21,031)
      Balance at end of period	(16,967)	22,085	5,281	13,064	23,464	6	478,870

      (4)Consolidated statements of cash flows
      		(Millions of yen)
      	For the fiscal year ended March 31, 2024	For the fiscal year ended March 31, 2025
      Cash flows from operating activities
      Profit before income taxes	29,758	41,176
      Depreciation	7,081	7,021
      Impairment losses	1,039	92
      Loss (gain) on step acquisitions	(109)	-
      Gain on bargain purchase	(1,343)	-
      Increase (decrease) in allowance for loan losses	514	1,214
      Increase (decrease) in provision for contingent loss	24	(208)
      Increase (decrease) in provision for bonuses	89	16
      Increase (decrease) in provision for bonuses for directors (and other officers)	28	22
      Increase (decrease) in provision for share-based payments	76	156
      Decrease (increase) in retirement benefit asset	(19,257)	2,802
      Increase (decrease) in retirement benefit liability	(304)	(14)

      Increase (decrease) in provision for retirement benefits for directors (and other officers)

      (4) 6

      Increase (decrease) in provision for reimbursement of deposits

      (130)

      (243)

      Increase (decrease) in provision for loss on guarantees 2 (2)

      Increase (decrease) in allowance for demolition of non-current assets	1,026	(13)
      Interest income	(99,006)	(115,106)
      Interest expenses	34,738	41,524
      Loss (gain) related to securities	3,276	4,326
      Loss (gain) on money held in trust	30	15
      Foreign exchange losses (gains)	0	0
      Loss (gain) on disposal of non-current assets	302	(146)
      Net decrease (increase) in trading securities	105	209
      Net decrease (increase) in loans and bills discounted	(164,439)	(150,187)
      Net increase (decrease) in deposits	131,128	23,319
      Net increase (decrease) in negotiable certificates of (6,458) 5,242 deposit
      Net increase (decrease) in borrowed money (excluding subordinated borrowings)	264,869	(202,005)
      Net decrease (increase) in due from banks (excluding due from Bank of Japan)	(5,137)	4,894
      Net decrease (increase) in call loans	(1,497)	2,985
      Net increase (decrease) in call money	26,608	(36,172)

      Net decrease (increase) in foreign exchanges - assets (10,235) 3,340

Net increase (decrease) in cash collateral received for securities lent

Net increase (decrease) in foreign exchanges -liabilities

67,481 (7,865)

(78) 364

1. Notes to consolidated financial statements

   (Note on going concern assumption) There are no applicable items.

   (Additional information)

   (Share-based payment plan using trusts)

   1. Overview of transactions

      The Company is implementing a trust-type, share-based payment plan (hereinafter referred to as the "Plan") that delivers shares of the Company to directors of the Company who are not Audit and Supervisory Committee Members (excluding outside directors and those who are not residents in Japan) and directors who are not Audit and Supervisory Committee Members (excluding outside directors and those who are not residents in Japan) and executive officers (excluding those who are not residents in Japan) of The Daishi Hokuetsu Bank, Ltd., which is a consolidated subsidiary of the Company (directors of the Company who are not Audit and Supervisory Committee Members, directors of The Daishi Hokuetsu Bank, Ltd. who are not Audit and Supervisory Committee Members, and executive officers of The Daishi Hokuetsu Bank, Ltd. are hereinafter collectively referred to as "Eligible Directors, etc.").

      The Plan establishes a trust by combining the amount of money within the range approved by the resolution of the general meeting of shareholders of the Company and the amount of money contributed by The Daishi Hokuetsu Bank, Ltd. after the approval of the general meeting of shareholders of the Bank with the Eligible Directors, etc. who meet certain requirements as beneficiaries. The trust acquires the Company's shares from the stock market using the money in the trust as the source of funds.

      During the trust period, in accordance with the predetermined provisions for the delivery of shares, beneficiaries shall receive, after receiving a certain number of points, the number of the Company's shares equivalent to 50% of the number of points at the time of retirement (shares less than one unit shall be rounded up), and shall receive money equivalent to the amount converted into cash within the trust for the remaining shares.

   2. The Company's shares held by the trust

The book value and number of shares of the Company held by the trust were 1,277 million yen and 844 thousand shares at the end of the current consolidated fiscal year (993 million yen and 729 thousand shares at the end of the previous consolidated fiscal year), and they are recorded as treasury stock under net assets.

(Transactions to deliver the Company's shares to employees, etc. through trusts)

1. Overview of transactions

   The Company introduced the "Trust-Type Employee Shareholding Incentive Plan (E-Ship®)" (hereinafter, the "Plan") with the aim of providing the Group's employees with an incentive to enhance the corporate value over the medium to long term and enhancing welfare benefits.

   The Plan is an incentive plan for all employees who belong to the "Daishi Hokuetsu Financial Group Employee Shareholding Association" (hereinafter, the "Shareholding Association"). Under the Plan, the Company establishes the "Daishi Hokuetsu Financial Group Employee Shareholding Association Dedicated Trust" (hereinafter, the "E-Ship Trust") with a trust bank, and the E-Ship Trust shall acquire the Company's shares in advance in the number expected to be acquired by the Shareholding Association for approximately five years after the establishment of the E-Ship Trust. Thereafter, the Company's shares will continue to be sold from the E-Ship Trust to the Shareholding Association, and if an amount equivalent to the gain on sale of shares is accumulated in the E-Ship Trust at the time of termination of the trust, the said amount equivalent to the gain on sale of shares will be distributed as residual assets to those who meet the beneficiary eligibility requirements. Furthermore, as the Company guarantees the borrowings to be used by the E-Ship Trust to acquire the Company's shares, if an amount equivalent to a loss on sale of shares is accumulated in the E-Ship Trust due to a decline in the Company's share price, and there are remaining borrowings equivalent to the loss on sale of shares in the E-Ship Trust at the time of termination of the trust, the Company shall repay the remaining borrowings.

2. The Company's shares held by the trust

   The book value and number of shares of the Company held by the trust were 2,219 million yen and 1,117 thousand shares at the end of the current consolidated fiscal year (2,657 million yen and 1,337 thousand shares at the end of the previous consolidated fiscal year), and they are recorded as treasury stock under net assets at the book value recorded by the trust.

3. Book value of borrowings accounted for using the gross price method

¥2,660 million at the end of the previous consolidated fiscal year

¥1,975 million at the end of the current consolidated fiscal year

(Changes in accounting policy)

(Application of Accounting Standard for Tax Effect Accounting)

The "Implementation Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No. 28, October 28, 2022) has been applied since the beginning of the current consolidated fiscal year.

In conjunction with this, for the accounting treatment of tax effects in cases where losses or gains arising from intercompany sales of shares of subsidiaries, etc. are deferred for tax purposes, whereas under the previous method deferred tax assets or deferred tax liabilities were not adjusted on consolidation for the temporary differences associated with such losses or gains if the selling corporations' financial statements recognized deferred tax assets or deferred tax liabilities for the temporary differences, the new method requires reversal of such deferred tax assets or liabilities.

The changes in accounting policies have been applied retrospectively, and accordingly, the consolidated financial statements for the previous fiscal year have been restated retrospectively. As a result, compared to the amounts before retrospective application of this accounting standard, deferred tax assets have increased by 155 million yen, deferred tax liabilities have decreased by 370 million yen, and retained earnings have increased by 526 million yen in the consolidated financial statements for the previous fiscal year.

(Segment Information)

Information by reportable segment regarding monetary amounts of ordinary revenues, profit or loss, assets, liabilities and other items

Previous fiscal year (from April 1, 2023 to March 31, 2024)

(Millions of yen)

(Notes) 1. Ordinary revenues are presented instead of net sales, which are used by non-financial companies.

1. "Other" represents a business segment not included in the reportable segments, and includes services such as credit guarantees and credit card operations.

2. The figures for the fiscal year ending March 2024 reflect retrospective application due to changes in accounting policies.

3. Adjustments are as follows:

   1. Adjustments to ordinary revenues from external customers of (343) million yen include adjustments to ordinary revenues associated with the purchase method of (353) million yen.

   2. Adjustments to segment profit of (7,757) million yen represent eliminations of inter-segment transactions, etc.

   3. Adjustments to segment assets of (390,951) million yen represent eliminations of inter-segment transactions, etc.

   4. Adjustments to segment liabilities of (76,679) million yen represent eliminations of inter-segment transactions, etc.

   5. Adjustments to depreciation of (24) million yen represent adjustments to depreciation associated with the purchase method.

   6. Adjustments to interest income of (7,863) million yen represent eliminations of inter-segment transactions, etc.

   7. Adjustments to financing expenses of (144) million yen represent eliminations of inter-segment transactions, etc.

   8. An adjustment of 68 million yen to the increase in property, plant and equipment, and intangible assets mainly represents the acquisition cost of lease assets obtained by non-lease business segments under agreements with the lease business segment.

4. Segment profit is reconciled to ordinary profit in the consolidated statement of income.

Current fiscal year (from April 1, 2024 to March 31, 2025)

(Millions of yen)

(Notes) 1. Ordinary revenues are presented instead of net sales, which are used by non-financial companies.

1. "Other" represents a business segment not included in the reportable segments, and includes services such as credit guarantees and credit card operations.

2. Adjustments are as follows:

   1. Adjustments to ordinary revenues from external customers of (27) million yen include adjustments to ordinary revenues associated with the purchase method of 160 million yen.

   2. Adjustments to segment profit of (7,959) million yen represent eliminations of inter-segment transactions, etc.

   3. Adjustments to segment assets of (421,374) million yen represent eliminations of inter-segment transactions, etc.

   4. Adjustments to segment liabilities of (103,152) million yen represent eliminations of inter-segment transactions, etc.

   5. Adjustments to depreciation of (37) million yen represent adjustments to depreciation associated with the purchase method.

   6. Adjustments to interest income of (8,374) million yen represent eliminations of inter-segment transactions, etc.

   7. Adjustments to financing expenses of (331) million yen represent eliminations of inter-segment transactions, etc.

   8. An adjustment of 12 million yen to the increase in property, plant and equipment, and intangible assets mainly represents the acquisition cost of lease assets obtained by non-lease business segments under agreements with the lease business segment.

3. Segment profit is reconciled to ordinary profit in the consolidated statement of income.

(Per share information)

(Notes)1. The company conducted a 2-for-1 stock split effective October 1, 2024. Net assets per share and Basic earnings per share is calculated on the assumption that the stock split was carried out at the beginning of the previous consolidated fiscal year.

1. The figures for the fiscal year ending March 2024 reflect retrospective application due to changes in accounting policies.

2. Diluted earnings per share is not presented as there are no potentially dilutive shares.

3. Net assets per share is calculated based on the following:

   	Previous fiscal year (As of March 31, 2024)	Current fiscal year (As of March 31, 2025)
   Total net assets (millions of yen)	499,902	478,870
   Amount deducted from total net assets (millions of yen)	19	6
   (Non-controlling interests)	19	6
   Net assets attributable to common stock at the fiscal year-end (millions of yen)	499,883	478,864
   Number of shares of common stock at the fiscal year-end used for the calculation of net assets per share (thousands)	87,596	87,259

   (Note) The shares of the Company remaining in the trust and recorded as treasury shares under shareholders' equity is included in the treasury shares deducted from the total number of shares at fiscal year-end for the purpose of calculating net assets per share.

   Number of treasury shares at fiscal year-end deducted in the calculation of net assets per share: Previous fiscal year 2,067 thousand shares

   Current fiscal year 1,961 thousand shares

4. Basic earnings per share is calculated based on the following:

(Note)The shares of the Company remaining in the trust and recorded as treasury shares under shareholders' equity is included in the treasury shares deducted from the average number of shares during the fiscal year for the purpose of calculating basic earnings per share.

Average number of treasury shares during the fiscal year deducted in the calculation of basic earnings per share:

Previous fiscal year 1,183 thousand shares Current fiscal year 2,026 thousand shares

(Significant subsequent events)

Memorandum of Understanding regarding Business Integration Between The Company and The Gunma Bank, Ltd.

At the Board of Directors meeting held on April 24, 2025, The Company resolved to aim for the realization of business integration (hereinafter referred to as the "Business Integration" or "this case") with The Gunma Bank, Ltd. (hereinafter referred to as "Gunma Bank", and together with The Company, hereinafter referred to as "Two Companies",) based on the basic policy of mutual trust and equal integration, and have entered into a memorandum of understanding between the Two Companies.

1. Philosophy and objectives of the Business Integration

   The aim of the Business Integration is to facilitate the creation of a new financial group that constitutes one of the top regional banks, in terms of both the scale and quality of its management, by integrating the Two Companies, which already possess solid customer bases in their respective business areas and demonstrate strong profitability and solid financial foundations.

   Based on a basic policy of mutual trust and an equal integration, the Two Companies will work to further contribute to their respective regions and continuously improve corporate value by consolidating their relationships of trust with customers and their understanding of their regions that they have cultivated in their respective business areas and by expanding and enhancing their consulting functions.

   In addition, the Two Companies will build a sustainable business model for the future by maximizing the benefits of rationalization and efficiency through economies of scale and by providing added value to customers by leveraging their respective strengths.

   Furthermore, the Two Companies will aim to become a valuable regional financial group that is able to fulfill customer, regional, and stakeholder expectations by developing a strong group management structure to maximize the potential of the Two Companies' management resources and by steadily achieving sustainable growth and enhancing corporate value.

2. Form of integration

   The Business Integration will be based on a holding company structure, and from the viewpoint of accelerating the process of business integration, it is planned that commonly used methods will be adopted and that The Company, which already employs a holding company structure, will be utilized as the holding company of the new financial group.

   Specifically, it is planned that Gunma Bank will, on or around April 1, 2027, conduct a share exchange with the Integrated Holding Company (defined below) and execute a business integration after the trade name of The Company has been changed (the specific trade name is scheduled to be determined in a definitive agreement regarding the Business Integration (the "Definitive Agreement"; the holding company after the change in trade name is hereinafter referred to as the "Integrated Holding Company"), on the condition that approval of the necessary matters for the Business Integration is obtained at the Two Companies' respective shareholders meetings and that permission and approvals for execution of the Business Integration is obtained from the relevant authorities. Since Gunma Bank will become a wholly-owned subsidiary of the Integrated Holding Company, together with Daishi Hokuetsu bank, through the share exchange, the shares of Gunma Bank will be delisted from the Tokyo Stock Exchange prior to the effective date of the share exchange. It is also planned that the location of the head office of the Integrated Holding Company at the time of the Business Integration will be determined in the Definitive Agreement upon consultation between the Two Companies. The locations of the respective head offices of Gunma Bank and Daishi Hokuetsu Bank, which will become subsidiaries, will not change. It is anticipated that the initial organizational structure adopted will be that of a company with an audit and supervisory committee, and it is planned that the details of this arrangement will be determined in the Definitive Agreement upon consultation between the Two Companies.

   The form of the Business Integration may be changed in the future through ongoing consultations and deliberations between the Two Companies.

3. Share exchange ratio

   The share exchange ratio will be announced as soon as it is decided, based on, among other factors, the results of due diligence to be conducted in the future and the results of the calculation of the share exchange ratio by the third-party appraisers appointed by the Two Companies, respectively, using methods deemed appropriate by those third-party appraisers.

4. Establishment of an integration preparatory committee

   In order to facilitate execution of the Business Integration, the Two Companies will establish an integration preparatory committee to hold focused discussions regarding the Business Integration.

5. Upcoming schedule

   Mar. 2026 (Scheduled)	Execution of the Definitive Agreement
   Dec. 2026 (Scheduled)	Extraordinary general shareholders meetings held by the Two Companies
   Apr. 1, 2027(Scheduled)	Effective date of share exchange

   (Note)The details above constitute the current plan and are subject to change depending on future discussions between the Two Companies. In addition, execution of the Business Integration is subject to obtainment of the authorization or approvals from the relevant authorities (including the filing of a Form F-4 registration statement with the U.S. Securities and Exchange Commission (the "SEC") and having the registration statement be declared effective), and if any event occurs that delays the schedule of the Business Integration due to the status of obtainment of such authorization or approvals and the like, then an announcement will be promptly made to that effect.

6. Overview of the Two Companies (as of December 31, 2024)

   Name	Daishi Hokuetsu Financial Group	Gunma Bank
   Location	1071-1 Higashiborimae-dori 7-bancho, Chuo-ku, Niigata-shi, Niigata	194 Motosojamachi, Maebashi-shi, Gunma
   Representative's name and title	Michiro Ueguri, President and Representative Director	Akihiko Fukai, President and Representative Director
   Business details	Management and operation of banks and other companies that Daishi Hokuetsu Financial Group may have as subsidiaries under the Banking Act and any and all businesses incidental or related thereto	Banking
   Stated capital	30 billion yen	48.6 billion yen
   Date of establishment	October 1, 2018 (Date of Establishment of Daishi Hokuetsu Bank November 2, 1873)	September 12, 1932
   Number of issued shares	91,885,956 shares	415,888,177 shares
   Market capitalization	275,231 million yen	470,913 million yen
   Fiscal year end	March 31	March 31
   Total assets (consolidated)	10,830.1 billion yen	10,611.9 billion yen
   Net assets (consolidated)	492.9 billion yen	567.2 billion yen
   Deposits (non-consolidated)	8,604.2 billion yen (Daishi Hokuetsu Bank non-consolidated)	8,630.6 billion yen
   Loan balance (non-consolidated)	5,541.1 billion yen (Daishi Hokuetsu Bank non-consolidated)	6,790.4 billion yen
   No. of employees (consolidated)	3,504 people	2,927 people
   No. of locations (including branch offices)	203 domestic branches (139 locations) and 1 overseas branch office	159 domestic branches (106 locations), 1 overseas branch and 3 overseas branch offices

7. Others

In the event the Business Integration is carried out, the shareholders of Gunma Bank will be issued shares of the Integrated Holding Company. In accordance with the U.S. Securities Act of 1933, it is planned that The Company will file a Form F-4 registration statement with the SEC regarding the Business Integration.

1. Non-consolidated financial statements

   1. Non-consolidated balance sheets

(Millions of yen)

As of March 31, 2024

As of March 31, 2025

Assets

Other 26 29

Provision for bonuses for directors (and other officers)

23 28

Total current liabilities 163 246

(Millions of yen)

As of March 31, 2024 As of March 31, 2025

1. Non-consolidated statements of changes in Equity

   For the fiscal year ended March 31, 2024

   (Millions of yen)

   	Shareholders' equity								Total net ' assets
   	Share capital	Capital surplus			Retained earnings		Treasury shares	Total shareholders equity
   		Legal capital surplus	Other capital surplus	Total capital surplus	Other retained earnings	Total retained earnings
   					Retained earnings brought forward
   Balance at beginning of period	30,000	7,500	280,105	287,605	9,092	9,092	(3,066)	323,632	323,632
   Changes during period
   Dividends of surplus					(5,892)	(5,892)		(5,892)	(5,892)
   Profit					7,992	7,992		7,992	7,992
   Purchase of treasury shares							(4,728)	(4,728)	(4,728)
   Disposal of treasury shares			0	0			157	157	157
   Total changes during period	-	-	0	0	2,100	2,100	(4,571)	(2,471)	(2,471)
   Balance at end of period	30,000	7,500	280,106	287,606	11,192	11,192	(7,638)	321,160	321,160

   For the fiscal year ended March 31, 2025

   (Millions of yen)

   	Shareholders' equity								Total net ' assets
   	Share capital	Capital surplus			Retained earnings		Treasury shares	Total shareholders equity
   		Legal capital surplus	Other capital surplus	Total capital surplus	Other retained earnings	Total retained earnings
   					Retained earnings brought forward
   Balance at beginning of period	30,000	7,500	280,106	287,606	11,192	11,192	(7,638)	321,160	321,160
   Changes during period
   Dividends of surplus					(8,358)	(8,358)		(8,358)	(8,358)
   Profit					8,577	8,577		8,577	8,577
   Purchase of treasury shares							(1,517)	(1,517)	(1,517)
   Disposal of treasury shares			0	0			464	464	464
   Total changes during period	-	-	0	0	218	218	(1,053)	(834)	(834)
   Balance at end of period	30,000	7,500	280,106	287,606	11,411	11,411	(8,692)	320,326	320,326

   Financial Results for the Fiscal

   Year Ended March 31, 2025 Presentation Material

Daishi Hokuetsu Financial Group, Inc.

[ Table of Contents ]

(Notes) 1. Figures less than the stated unit of the presentation are rounded down.

of the Financial Results for the Fiscal Year Ended March 31, 2025" and thereafter are based on the calculations using the figures in the tables.

I Overview of the Financial Results for the Fiscal Year Ended March 31, 2025

1. Financial Results

   [Daishi Hokuetsu Financial Group, Inc]

   Fiscal year ended

   (Millions of yen)

   Fiscal year ended

   Consolidated gross profit Net interest income Fees and commissions

   Profit from other businesses Operating expenses

   Provision for bad debts write-offs

   1

   2

   3

   4

   [-] 5

   [-] 6

   March 31, 2025

   103,586

   73,584

   25,258

   4,743

   62,661

   5,560

   YoY change

   6,397

   9,316

   (149)

   (2,771)

   (677)

   (1,686)

   March 31, 2024

   97,189

   64,268

   25,407

   7,514

   63,338

   7,246

   Write-offs of loans [-] 7

   894

   (2,200)

   3,094

   Individual provision of allowance for loan losses

   General provision of allowance for

   loan losses

   [-] 8

   [-] 9

   4,939

   (892)

   2,036

   (1,263)

   2,903

   371

   Loss on sale of delinquent loans, etc [-] 10 Other [-] 11

   72

   546

   (140)

   (119)

   212

   665

   Reversal of allowance for loan losses Recoveries of written-off claims Gains (losses) on stocks

   Other Ordinary profit

   Extraordinary income (losses) Profit before income taxes Income taxes - current Income taxes - deferred

   Profit

   12

   13

   14

   15

   16

   17

   18

   [-] 19

   [-] 20

   21

   -

   835

   3,260

   1,651

   41,112

   63

   41,176

   10,524

   1,300

   29,350

   -

   83

   758

   641

   10,244

   1,173

   11,418

   1,326

   1,944

   8,146

   -

   752

   2,502

   1,010

   30,868

   (1,110)

   29,758

   9,198

   (644)

   21,204

   Profit attributable to non-controlling interests [-] 22 0 (1) 1

   Profit attributable to owners of parent

   23 29,349

   8,146

   21,203

   (Note) Consolidated gross profit = (interest income - (financing expenses - fees and commissions expenses for money held in trust )) + (fees and commissions + trust fees - fees and commissions payments ) + (other ordinary income - other ordinary expenses )

   (Reference) (Millions of yen)

   Consolidated business profit

   24

   39,850

   6,508

   33,342

   (Note) Consolidated business profit = business profit of Daishi Hokuetsu Bank, Ltd. + business profit of other companies + business profit of affiliates × equity interests - internal transactions

   [Daishi Hokuetsu Bank, Ltd. Non-Consolidated ]				(Millions of yen)
   		Fiscal year ended		Fiscal year ended
   		March 31, 2025	YoY change	March 31, 2024
   Consolidated gross profit	1	90,844	5,593	85,251
   (Core gross profit)	2	98,313	7,387	90,926
   Net interest income	3	72,658	8,647	64,011
   (Of which, interest on loans and bills discounted)	4	54,880	5,654	49,226
   (Of which, interest and dividends on securities)	5	46,021	7,002	39,019
   (Of which, gains (losses) from cancellation of investment trust)	6	2,036	970	1,066

   (Of which, financing expenses)	[-]	7	41,493	6,785	34,708
   Fees and commissions		8	15,478	(175)	15,653
   Profit from other businesses (Excluding gains (losses) from governm	ent	9	2,707	(2,879)	5,586

   bonds and other bonds)

   (Of which, gains (losses) from government bonds and other bonds)

   Expenses (excluding non-recurring losses)

   10	10,176	(1,085)	11,261
   11	(7,468)	(1,794)	(5,674)

   [-] 12

   58,570

   817

   57,753

   Personnel expenses [-] 13

   Non-personnel expenses [-] 14

   Taxes [-] 15

   30,529

   24,578

   3,463

   435

   512

   (129)

   30,094

   24,066

   3,592

   Substantial business profit 16

   (Core business profit)17

   (Core business profit (excluding gains (losses)

   from cancellation of investment trust)) 18

   32,274

   39,743

   37,706

   4,776

   6,571

   5,601

   27,498

   33,172

   32,105

   General provision of allowance for loan losses ① [-] 19

   (957)

   (1,218)

   261

   Business profit

   Temporary income (losses)

   20 33,232

   21 1,898

   5,996

   3,716

   27,236

   (1,818)

   Of which, disposal of non-performing loans ②[-] 22

   (Provision for bad debts write-offs①+②) [-] 23

   5,508

   4,550

   (745)

   (1,964)

   6,253

   6,514

   Of which, reversal of allowance for loan losses 24

   Of which, reversal of provision for contingent loss 25

   Of which, recoveries of written-off claims 26

   Of which, gains (losses) on stocks 27

   Ordinary profit 28

   Extraordinary income (losses) 29

   Of which, loss (gain) on disposal of non-current

   assets 30

   -

   206

   831

   2,927

   35,127

   67

   144

   -

   206

   85

   183

   9,710

   2,701

   438

   -

   -

   746

   2,744

   25,417

   (2,634)

   (294)

   Of which, impairment losses [-] 31

   90 (1,172)

   1,262

   Profit before income taxes Income taxes - current Income taxes - deferred Profit

   (Reference)

   32

   [-] 33

   [-] 34

   35

   35,195

   8,803

   1,149

   25,242

   12,412

   1,543

   1,688

   9,180

   22,783

   7,260

   (539)

   16,062

   Net credit cost 19+22-24-25-26 [-]

   36

   3,513

   (2,254)

   5,767

   ※Core gross profit = gross profit - gains (losses) from government bonds and other bonds

   ※Substantial business profit = gross profit - expenses (excluding non-recurring losses)

   ※Core business profit = core gross profit - expenses (excluding non-recurring losses)

2. Business Profit

   [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

   (Millions of yen)

   		Fiscal year ended		Fiscal year ended March 31, 2024
   		March 31, 2025	YoY change
   Business profit (Before general provision of allowance for loan losses)		32,274	4,776	27,498
   	Per employee (thousand yen)	10,805	1,688	9,117
   Core business profit		39,743	6,571	33,172
   	Per employee (thousand yen)	13,305	2,307	10,998
   Business profit		33,232	5,996	27,236
   	Per employee (thousand yen)	11,125	2,095	9,030

3. Interest Spread

   1. All Branches

      [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

      (%)

      			Fiscal year ended		Fiscal year ended March 31, 2024
      			March 31, 2025	YoY change
      Yield on interest-earning assets		①	1.09	0.08	1.01
      	Interest rate on loans and bills discounted	②	0.99	0.08	0.91
      	Interest rate on securities	③	1.58	0.19	1.39
      Yield on interest-bearing liabilities		④	0.40	0.07	0.33
      	Interest rate on deposits, etc.	➄	0.05	0.05	0.00
      	Interest rate on external debt	⑥	1.75	0.22	1.53
      Cost of deposits, etc.		➄	0.74	0.07	0.67
      Expense ratio			0.68	0.01	0.67
      Cost of interest-bearing liabilities		❽	0.97	0.08	0.89
      Interest rate difference between deposits and loans		②-➄	0.94	0.03	0.91
      Interest rate difference between interest-earning assets and interest-bearing liabilities		①-④	0.69	0.01	0.68
      Interest spread between deposits and loans		②-➄	0.25	0.01	0.24
      Overall interest spread		①-❽	0.12	0.00	0.12

   2. Domestic Business Units

      [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

      (%)

      			Fiscal year ended		Fiscal year ended March 31, 2024
      			March 31, 2025	YoY change
      Yield on interest-earning assets		①	0.76	0.07	0.69
      	Interest rate on loans and bills discounted	②	0.95	0.08	0.87
      	Interest rate on securities	③	0.84	0.07	0.77
      Yield on interest-bearing liabilities		④	0.06	0.05	0.01
      	Interest rate on deposits, etc.	➄	0.05	0.05	0.00
      	Interest rate on external debt	⑥	0.00	0.00	0.00
      Cost of deposits, etc.		➄	0.72	0.06	0.66
      Expense ratio			0.67	0.01	0.66
      Cost of interest-bearing liabilities		❽	0.66	0.07	0.59
      Interest rate difference between deposits and loans		②-➄	0.90	0.03	0.87
      Interest rate difference between interest-earning assets and interest-bearing liabilities		①-④	0.70	0.02	0.68
      Interest spread between deposits and loans		②-➄	0.23	0.02	0.21
      Overall interest spread		①-❽	0.10	0.00	0.10

4. Balance of Deposits, etc., and Loans and Bills Discounted

   [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

   (Millions of yen)

   					As of March 31, 2024
   		As of March 31, 2025	YoY change
   			Increase (decrease)	Rate of increase (decrease)
   Balance of deposits, etc. (ending balance)		8,780,384	34,417	0.39%	8,745,967
   	Niigata	8,608,012	46,041	0.53%	8,561,971
   	Outside Niigata	172,372	(11,624)	( 6.31)%	183,996
   Balance of deposits, etc. (average balance)		8,593,905	16,527	0.19%	8,577,378
   	Niigata	8,415,850	22,151	0.26%	8,393,699
   	Outside Niigata	178,055	(5,623)	( 3.06)%	183,678
   Balance of loans and bills discounted (ending balance)		5,614,300	159,134	2.91%	5,455,166
   	Niigata	3,583,056	(68,469)	( 1.87)%	3,651,525
   	Outside Niigata	2,031,244	227,604	12.61%	1,803,640
   Balance of loans and bills discounted (average balance)		5,493,614	137,648	2.56%	5,355,966
   	Niigata	3,598,208	(93,156)	( 2.52)%	3,691,364
   	Outside Niigata	1,895,406	230,804	13.86%	1,664,602

   ※Balance of deposits, etc. = deposits + negotiable certificates of deposits

5. Balance of Assets in Custody

   [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

   (Millions of yen)

   		As of		As of March 31, 2024
   		March 31, 2025	YoY change
   Balance of assets in custody		1,031,630	63,696	967,934
   	Investment trust	194,049	(430)	194,479
   	Public bonds	72,624	3,551	69,073
   	Insurance	764,956	60,575	704,381
   (Reference) Daishi Hokuetsu Securities Co., Ltd.		505,936	1,523	504,413

6. ROE

   [Daishi Hokuetsu Financial Group, Inc. Consolidated]

   (%)

   	Fiscal year ended		Fiscal year ended March 31, 2024
   	March 31, 2025	YoY change
   Ordinary profit basis	8.40	1.66	6.74
   Profit attributable to owners of parent basis	5.99	1.36	4.63

   (Note) The figures are calculated using the average balance at the beginning and end of the fiscal year of net assets (excluding non-controlling interests)

   [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

   (%)

   	Fiscal year ended		Fiscal year ended March 31, 2024
   	March 31, 2025	YoY change
   Ordinary profit basis	8.34	1.95	6.39
   Profit basis	5.99	1.96	4.03

   (Note) The figures are calculated using the average balance at the beginning and end of the fiscal year of net assets

7. Gains or Losses on Securities

   [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

   (Millions of yen)

   			Fiscal year ended		Fiscal year ended March 31, 2024
   			March 31, 2025	YoY change
   Gains (losses) from government bonds and other bonds (aggregate of the following five gains and losses)			(7,468)	(1,794)	(5,674)
   	Gain on sale		4,602	(509)	5,111
   	Gain on redemption		6	(139)	145
   	Loss on sale	[-]	11,916	1,346	10,570
   	Loss on redemption	[-]	133	(174)	307
   	Devaluation	[-]	28	(25)	53
   Gains (losses) on stocks, etc. (aggregate of the following three gains and losses)			2,927	183	2,744
   	Gain on sale		3,496	(3,134)	6,630
   	Loss on sale	[-]	569	(3,253)	3,822
   	Devaluation	[-]	0	(63)	63

8. Valuation Gains or Losses on Securities (After Taking Into Account Deferred Hedging)

   1. Valuation Basis of Securities

      Trading securities	Fair value method (valuation difference recorded in gain or loss)
      Held-to-maturity securities	Amortized cost method
      Available-for-sale securities	Fair value method (all valuation differences recorded directly into net assets)
      Stocks of subsidiaries and affiliates	Cost method

   2. Valuation Gains or Losses

   [Daishi Hokuetsu Financial Group, Inc. Consolidated]

   (Millions of yen)

   			As of March 31, 2025					As of March 31, 2024
   			Carrying amount on the balance sheet	Valuation				Carrying amount on the balance sheet	Valuation
   				gains (losses)	YoY change	Valuation gains	Valuation losses		gains (losses)	Valuation gains	Valuation losses
   Held-to-maturity securities			139,266	(3,924)	(4,064)	-	3,924	123,052	140	321	180
   Available-for-sale securities			2,748,274	10,326	(49,482)	159,808	149,482	2,938,737	59,808	180,126	120,317
   	Stocks		202,632	94,434	(15,938)	95,665	1,231	217,226	110,372	110,691	318
   	Bonds※		1,329,401	(64,070)	(35,817)	11,893	75,963	1,432,134	(28,253)	9,447	37,701
   	Other		1,216,240	(20,038)	2,271	52,249	72,287	1,289,376	(22,309)	59,988	82,298
   		Foreign securities※	754,848	(18,212)	4,280	31,233	49,445	711,987	(22,492)	37,218	59,711
   Total (after taking into account deferred hedging)			2,887,541	6,401	(53,548)	159,808	153,407	3,061,790	59,949	180,447	120,498

   [Daishi Hokuetsu Bank, Ltd. Non-consolidated]

   (Millions of yen)

   			As of March 31, 2025					As of March 31, 2024
   			Carrying amount on the balance sheet	Valuation				Carrying amount on the balance sheet	Valuation
   				gains (losses)	YoY change	Valuation gains	Valuation losses		gains (losses)	Valuation gains	Valuation losses
   Held-to-maturity securities			139,266	(3,924)	(4,064)	-	3,924	123,052	140	321	180
   Available-for-sale securities			2,730,772	10,516	(47,130)	159,238	148,722	2,919,069	57,646	178,033	120,387
   	Stocks		185,130	93,872	(13,903)	94,818	946	197,557	107,775	107,986	210
   	Bonds※		1,329,401	(63,615)	(36,015)	11,895	75,510	1,432,134	(27,600)	9,602	37,203
   	Other		1,216,240	(19,740)	2,788	52,525	72,265	1,289,376	(22,528)	60,444	82,972
   		Foreign securities※	754,848	(18,217)	4,374	31,233	49,451	711,987	(22,591)	37,221	59,813
   Total (after taking into account deferred hedging)			2,870,039	6,591	(51,195)	159,238	152,647	3,042,122	57,786	178,354	120,567

   ※Bonds and foreign securities use deferred hedging by interest rate swaps to mitigate the fair value fluctuation risk, and valuation gains or losses are presented after taking into account deferred hedging

9. Capital Adequacy Ratio

[Daishi Hokuetsu Financial Group, Inc. Consolidated]

(Millions of yen)

[Daishi Hokuetsu Bank, Ltd. Consolidated]

(Millions of yen)

[Daishi Hokuetsu Bank, Ltd. Non-consolidated]

(Millions of yen)