Hokuhoku Financial : Second Quarter ended September 30,_2022

Summary：		November 11, 2022
	Interim Financial Results for Fiscal 2022 (Japanese GAAP)
Company Name:	Hokuhoku Financial Group, Inc.
Stock Code Number (Japan):	8377
Stock Exchanges (Japan):	Tokyo Stock Exchange (Prime Market), Sapporo Securities Exchange
URL:	https://www.hokuhoku-fg.co.jp/
Address:	1-2-26Tsutsumicho-dori,Toyama-city, Toyama Pref., 930-8637, Japan
Representative:	Name:	Hiroshi Nakazawa
	Title:	President & CEO
Trading Accounts:	Established

Amounts less than one million yen are rounded down.

1. Financial Highlights for the first half of Fiscal 2022 (for the six months ended September 30, 2022)

(1) Consolidated Results of Operations				(%: Changes from corresponding period of previous fiscal year)
			Ordinary Income				Ordinary Profits				Net Income Attributable to Owners of the Parent
¥	million	%		¥ million	%		¥ million	%
	1H F2022	96,991	10.3	14,545	(23.8)	9,306	(29.1)
	1H F2021			87,895		(0.0)		19,087		5.1		13,125		0.9

Reference: Comprehensive Income for the first half of Fiscal 2022: ¥(27,727) million [－%], for the first half of Fiscal 2021: ¥22,646 million [(43.9)%]

				Net Income			Diluted Net Income
				per Share of Common Stock	per Share of Common Stock
	1H F2022	¥			¥
	68.28			68.04
	1H F2021		95.07			94.75
(2) Consolidated Financial Conditions
				Total Assets			Total Net Assets		Own Capital Ratio
				¥ million			¥ million	%
	1H F2022	15,850,594	590,193	3.7
	Fiscal 2021		17,280,071			622,845		3.6
	Reference: Own Capital:		as of September 30, 2022: ¥		586,256 million; as of March 31,		2022: ¥618,896 million
Notes:	Own Capital Ratio is calculated as follows: (Total Net Assets－Stock Acquisition Rights－Non-controlling Interests)/ Total Assets×100

2. Cash Dividends for Shareholders of Common Stock

			Cash Dividends per Share
(Record Date)	The end of 1st Qtr	The end of 2nd Qtr	The end of 3rd Qtr	Fiscal year-end		Annual
	¥	¥	¥			¥	¥
Fiscal 2021	－	0.00	－	35.00	35.00
Fiscal 2022	－	0.00
Fiscal 2022			－			35.00		35.00
(forecast)
Notes: Revision of released forecast for cash dividends for shareholders of common stock: No

3. Earnings Estimates for Fiscal 2022 (for the fiscal year ending March 31, 2023)

(%: Changes from corresponding period of previous fiscal year)

		Ordinary Profits		Net Income		Net Income
			Attributable to Owners of the Parent		per Share of Common Stock
¥	million	%	¥ million	%	¥
Full Year		31,000		2.4	19,000		(7.4)	140.32

Notes: Revision of released earnings estimates: No

4. Others

(1) Changes in Significant Subsidiaries during the First Half of Fiscal 2022

(Changes in specified subsidiaries accompanying changes in scope of consolidation): No

1. Changes in Accounting Methods and Presentation of Consolidated Financial Statements

1. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
2. Changes in accounting policies other than (a) above: No
3. Changes in accounting estimates: No
4. Restatements: No

1. Issued Shares（Common Stock）

	(a) Number of Common Stock				As of September 30,	128,770,814	As of March 31,	128,770,814
	outstanding (including Treasury Stock)	2022							2022
	(b) Number of Treasury Stock				As of September 30,	658,344	As of March 31,	831,643
				2022							2022
	(c) Average outstanding shares				As of September 30,				128,033,170	As of September 30,		131,274,334
	for the six months ended				2022							2021
Non-consolidated Financial Results
1. Financial Highlights for the First Half of Fiscal 2022 (for the six months ended September 30, 2022)
(1) Non-Consolidated Results of Operations												(%: Changes from previous fiscal year)
						Operating Income	Operating Profits						Ordinary Profits	Net Income
¥	million	%			¥ million	%				¥ million	% ¥	million	%
	1H Fiscal 2022	6,608			(2.3)			6,361			(2.2)			6,340			(2.4)				6,339	(2.4)
	1H Fiscal 2021					6,766			(0.5)			6,506			(0.0)			6,499			0.2				6,495		0.2
						Net Income
						per Share of Common Stock
	1H Fiscal 2022				¥
				45.10
	1H Fiscal 2021						44.56
(2) Non-Consolidated Financial Conditions
						Total Assets				Total Net Assets		Own Capital Ratio
						¥	million	¥	million					%
	1H Fiscal 2022				217,693						217,545					99.7
	Fiscal 2021						221,283						216,129					97.4

Reference: Own Capital: as of September 30, 2022: ¥217,123 million; as of March 31, 2022: ¥215,628 million

(Implementation status of audit procedures) This report is not subject to audit procedures.

The above estimates are based on information that is available at this moment and assumptions of factors that have an influence on future results of operations. Actual results may differ materially from these estimates, depending on future events.

(Reference)

Cash Dividends for Shareholders of Preferred Stock (Type 5)

Cash Dividends per Share

(Record Date)	The end of 1st Qtr	The end of 2nd Qtr	The end of 3rd Qtr		Fiscal year-end		Annual
Fiscal 2021	¥	¥	¥	¥	¥
－	7.50	－	7.50	15.00
Fiscal 2022	－	7.50
Fiscal 2022			－		7.50		15.00
(forecast)

Hokuhoku Financial Group, Inc. (8377)

SELECTED INTERIM FINANCIAL INFORMATION

For the Fiscal Year 2022

(Ended September 30, 2022)

Hokuhoku Financial Group, Inc. (8377)

SELECTED INTERIM FINANCIAL INFORMATION For the Fiscal Year 2022 (Ended September 30, 2022)

Table of Contents

I．Interim Financial Highlights
中間決算ハイライト
1. Income Analysis	…………………………	1
2. Loans and Deposits	…………………………	4
3. Securities	…………………………	6
4. Non-Performing Loan	…………………………	7
5. Capital Adequacy Ratio	…………………………	8
6. Forecast
II．Financial Statements	…………………………	9
財務諸表
Ⅲ．Summary of Interim Financial Results
中間決算の概要
1. Income Analysis	…………………………	18
2. Average Balance of Use and Source of Funds	…………………………	21
3. Interest Rate Spread	…………………………
4. Net Business Profits	22
5. ROE ･ OHR ･ ROA	…………………………
6. Net Gains and Losses on Securities	23
7. Valuation Difference on Securities	…………………………	24
8. Capital Adequacy Ratio	…………………………	25
Ⅳ．Loan Portfolio and Other
貸出金等の状況
1. Disclosed Claims under the Financial Reconstruction Law	…………………………	26
2. Coverage on Disclosed Claims under the Financial Reconstruction Law	…………………………	27
3. Allowance for Loan Losses	…………………………	28

1. Deposits and Loans
2. Loans to Small and Medium-sized Enterprises ("SMEs") and Individuals
3. Housing and Consumer Loans

7. Classification of Loans by Type of Industry

………………………… 29

Note

"FG" means Hokuhoku Financial Group, Inc..

"Total of two banks" means aggregated figures of Hokuriku Bank and Hokkaido Bank.

This information contains forward-looking statements. Such forward-looking statements do not represent any guarantee by management of future performance and contains risks and uncertainties. Please take note that future performance may differ from forecasts due to changes in economic environment.

Hokuhoku Financial Group, Inc. (8377)

I．Interim Financial Highlights

1. Income Analysis

【FG(consolidated)】						For the six months ended		(Billions of yen)
		(Japanese)		Sep.30, 2022			Sep.30, 2021
						(A)	(A)-(B){(A)-(B)}/(B)	(B)
Ordinary income	経	常		収	益	96.9	9.0	10.3%	87.8
Ordinary profits	経	常		利	益	14.5	(4.5)	(23.8%)	19.0
Net income attributable to owners of the parent	親 会 社 株 主 に 帰 属 す る	9.3	(3.8)	(29.1%)	13.1
中	間	純	利	益
【Total of two banks】						For the six months ended		(Billions of yen)
		(Japanese)		Sep.30, 2022			Sep.30, 2021
						(A)	(A)-(B){(A)-(B)}/(B)	(B)
Ordinary income	経	常		収	益	90.4	10.7		79.7

Core gross business profits

Net interest income

Domestic

International

Net fees and commissions

Net trading income

Net other income (excluding gains (losses)

related to bonds)

Gains (losses) on foreign exchange transactions

Income from derivatives

General and administrative expenses

Personnel

Non-personnel

コ ア 業 務 粗 利 益

資 金 利 益

国 内 業 務 部 門

国 際 業 務 部 門

役 務 取 引 等 利 益

特 定 取 引 利 益

そ の 他 業 務 利 益 ( 国 債 等 債 券 損 益 除 く )

う ち 外 国 為 替 売 買 損 益

う ち 金 融 派 生 商 品 収 益

経費

人 件 費

物 件 費

63.7	1.7	2.9%	61.9
53.1	0.5		52.5
51.4	1.0		50.4
1.6	(0.5)		2.1
9.9	1.0		8.8
0.0	0.0		0.0
0.6	0.1		0.5
0.6	0.1		0.5
0.0	0.0		0.0
37.8	(2.1)		40.0
18.2	(0.7)		18.9
16.5	(1.3)		17.8

Core net business profits

Net gains (losses) related to bonds

of general allowance for loan losses)

loan losses (1)

Net business profits

Net non-recurring gains (losses)

Credit related costs (2)

(Reference) Total credit costs (1)+(2)

Net gains (losses) related to stocks

コ	ア	業		務	純	益	25.8	3.9	17.8%	21.9
国	債	等 債	券	損	益	(9.4)	(11.0)		1.6
実	質	業		務	純	益	16.4	(7.1)		23.5
一 般 貸 倒 引 当 金 繰 入 (1)	1.2	(0.6)		1.9
業		務		純		益	15.1	(6.4)		21.5
臨		時		損		益	0.1	1.8		(1.7)
不 良 債 権 処 理 額 (2)	5.4	2.1		3.3
( 参 考 ) 与 信 費 用 (1)+(2)	6.7	1.4		5.2
株	式	等	損	益	6.6	4.9		1.7

Ordinary profits	経	常		利	益	15.3	(4.5)	(23.0%)	19.8
Net extraordinary gains (losses)	特	別		損	益	(0.2)	(0.0)		(0.2)
Income taxes	法	人		税	等	4.4	(0.6)		5.1
Income taxes-deferred	法	人 税 等	調 整	額	(0.7)	(0.2)		(0.5)
Net income	中	間	純	利	益	10.6	(3.9)	(27.0%)	14.5

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