Regarding the Formulation of the New Medium-Term Management Plan (22nd Medium-Term Management Plan)

Overview of the 22nd Medium-Term Management Plan

The Iwate Bank, Ltd. formulated the 22nd Medium-Term Management Plan, “Regional Value Co-Creation Plan - The 2nd,” with a three-year planning period from April 2026 to March 2029. Building on the results of the previous medium-term plan, the Bank promotes deepening of financial service domains and challenges in new business areas. The basic premise is a shift to management adapted to the inflation era, achieving a sophisticated balance between offensive and defensive management. Toward the final year of the long-term vision in fiscal 2032, the Bank targets consolidated net income attributable to owners of parent of over 18 billion yen and consolidated ROE of over 7.5%, aiming for consolidated ROE exceeding 9% by fiscal 2035, ten years ahead.

Basic Policies and Priority Measures

The basic policies consist of three points: “Transformation of the business portfolio,” “Enhancement of regional growth capabilities,” and “Strengthening organizational resilience.” In the business portfolio, the Bank focuses on interest income business as the core, promoting accumulation of risk assets and expansion of regional share, along with business modeling of new ventures. For enhancing regional growth capabilities, the plan aims to implement a central role in the area platform and improve the region’s earning power and growth potential by utilizing human resources and networks. Organizational resilience efforts include building an organization with high engagement and flexible responsiveness, reducing business risks, and establishing safe and secure financial functions.