[The Tochigi Bank, Ltd.] Financial Presentation for the Second Quarter of the Fiscal Year Ending March 2027

Overview of Results

Although consolidated ordinary income increased steadily year-over-year, ordinary profit declined due to higher costs including increases in deposit interest and the recording of losses on sales of securities. Core business net profit increased, supported by higher loan interest income and gains from asset management. Progress against the interim earnings forecast was 121.9%, significantly exceeding the prior forecast. Going forward, the Bank will focus on expanding net interest income and controlling expenses while continuing growth investments and human capital investment leveraging DX and AI.

Business and Capital Policy Initiatives and Outlook

As a new value proposition, the Bank is expanding fee income from services, strengthening solution fees for business matching, business succession, and M&A. While paying attention to increased costs from new branches and interest rate trends, the Bank will review its securities holding strategy to curb interest rate risk. The Bank will also focus on expanding investee holdings and regional collaboration to revitalize local communities.