Value Creation Process (1,212kb)

Materialities

Responding to the Effects of Accelerating Climate Change

Operating capital

Customer base

•Large share of deposits and loans in Nara prefecture

Realizing Sustainable

Growth of Our Regional

Economy

Realizing a Convenient, Prosperous Society

Cultivating a Healthy Corporate Culture with Participation of Diverse Human Resources

Preparing for Increasingly Varied and Complex Risks

Deposits 50.0%

Loans 49.9%

•Chosen as the main bank by businesses operating in Nara Prefecture

60.78%

(Teikoku Databank National Corporate "Main Bank" Trend Survey 2023)

Human resources base

•Number of employees supporting the Bank's management philosophy

2,257

•Number of employees with qualications related to vitality creation

693

Financial base

•Strong capital adequacy ratio

Capital adequacy ratio Consolidated 10.77% Non-consolidated10.46%

(End March 2024)

C

Reasons for deviations from the Plan and actual results

Customers

Supply of funds in accordance with the borrower's business characteristics

Financial products and services to support afuent living

Provision of management personnel Creation of new business opportunities

Local community

Collaboration as a leader in regional development with local governments, businesses and educational institutions

Lively town development and business creation

Employees

Realzing exible workstyles

Providing opportunities for active engagement outside the business of banking

Shareholders

High market rating

Continuing stable dividends

Management

personnel cultivation*2

350

ROA (non-consolidated)

0.35% or above

*1 To be achieved by the end of fiscal 2026, so that the achievement will be announced in 2029 (Nara prefecture's GDP is usually announced approximately two-and-a-half years after the relevant fiscal year-end).

*2 Human resources who can share management decision-making with local customers

Sustainable finance to fiscal 2030

Amount of investment: 1trillion yen

Scope

Finance contributing to issue solution in the environmental and social fields

Finance to support and promote customers' SDG compliance

The Nanto Bank Group's target for CO2 emission reduction by FY2030

75% or higher compared to fiscal 2013

The Nanto Bank Group's target for CO2 emission reduction by 2050: Net zero

Scope: Scopes 1 and 2

Ratio of female managers (section manager level and above) by fiscal 2027

20%

Priority targets

Of the 17 SDGs, the Nanto Bank Group has selected seven as priority targets, focusing on goals that are closely related to our business domain and business strategies and goals that address sustainable local environmental conservation.

[Superior quality education for all]

Promoting and expanding financial and economic education

[Creating communities where people can continue to live agreeably]

Facing local issues and contributing to economic and community revitalization

The Bank's public mission

In recognition of the importance of banks' public missions, we strive continually to establish unwavering trust through sound business practices.

Superior-quality financial service provision

We will respond to our customer needs through our customer-oriented business operations by providing such stable functions as infrastructure to support customers' economic activities and enhancing our sophisticated services further. We will also contribute to economic and social development at home and abroad with high-quality financial services that effectively protect customers' profits, such as services that improve their security and secure their business continuity in the event of disasters. These include preparations for incidents of terrorism, cyber attacks and natural disasters that threaten the lives of citizens and corporate business operations.

Strict compliance with laws, rules, and regulations

We are fastidious in our compliance with all laws, rules and regulations and carry out sincere and fair corporate activities that avoid violating social norms.

Communication with society

We will disclose management and other information in a positive, effective, and fair manner as well as through constructive dialogue with the Bank's wide-ranging stakeholders. Striving to enhance our own corporate value, we will communicate with residents throughout society to secure their understanding and trust.

Respect for human rights

We respect the human rights of all people.

Diverse human resources; safe, healthy workplaces

We implement systems and flexible work styles that promote the success of diverse human resources. We ensure a comfortable work environment, moreover, that takes employee health and safety into consideration.

Efforts toward human resources development and contribution to financial and economic education

We engage proactively in human resources and skills development, and support employees' autonomous career development. We also contribute to improvement of society's financial literacy through participation in financial and economic education.

Efforts to address environmental issues, etc.

We act proactively to establish sustainable natural and social environments that are highly resilient to changes in the global environment and social conditions.

Contribution to social participation and development

Recognizing that a bank can survive and develop only within the context of society, we behave as a "good corporate citizen" living in harmony with society. We participate actively in society and contribute to its development.

Preventing relations with antisocial forces and responding to threats such as terrorism

We shall resolutely confront antisocial forces that threaten the order and safety of civil society and counteract any and all relationships with such forces. Facing down threats of terrorism and other threats to the international community, we shall strive to enhance our money laundering- prevention and anti-terrorism financing measures.