Regarding the Change in the Calculation Method of the Capital Adequacy Ratio

Overview of Change in Credit Risk Measurement Method

The Nagoya Bank, Ltd. will change the credit risk measurement method used for calculating the capital adequacy ratio from the conventional "Standardized Approach" to the "Basic Internal Ratings-Based Approach" with the approval of the Financial Services Agency. The Basic Internal Ratings-Based Approach leverages the bank’s internal rating system to more accurately reflect the credit risk of loan assets and other exposures, requiring the establishment of a rigorous internal management framework.

Reason for Change and Future Application

Under its corporate philosophy of serving the prosperity of the local community, the bank determined that enhancing credit risk management is essential to strengthen its financial intermediation function and support partnerships. Having worked on strengthening its internal management system and received approval from the Financial Services Agency, the new method will be applied from the capital adequacy ratio calculation at the end of March 2026, with disclosure scheduled for mid-May 2026.