Notice Regarding Revision of Earnings Guidance and Expected Differences from Results for the Same Period of the Previous Year

Overview of Revision to Earnings Guidance

The Towa Bank, Ltd. has revised its consolidated and non-consolidated earnings guidance for the cumulative second quarter of the fiscal year ending March 2027. The revision for interim net income is upward; on a consolidated basis interim net income increased by 1,200 million yen, resulting in interim net income per share of 104.17 yen. The primary factors are higher-than-expected gains on disposal of fixed assets from the sale of idle assets and a reduction in corporate tax burdens. However, the full-year earnings guidance remains unchanged from the previous forecast. Compared with the same period of the previous year, ordinary revenue is expected to increase significantly.

Outlook and Impact on Shareholders

There is no change to the full-year guidance, and given the uncertainty in financial and economic conditions, there remains the possibility of further revisions depending on future developments. Gains from the sale of idle assets and tax burden reduction through tax-effect accounting have contributed to the upward revision of interim net income, and short-term improvement in shareholder value is expected. However, confirmation of performance will depend on future market conditions.