Exposure to deterioration in regional economic conditions and major natural disasters

「During the interim consolidated accounting period, the Japanese economy recovered moderately. Exports showed weakness due to the impact of U.S. trade policy, but capital investment increased moderately as investment in digitalization progressed, while personal consumption remained firm despite the impact of rising prices. The local Kyushu economy also followed a similar trend to the national economy.」

「While the local Kyushu economy recovered moderately, in line with the national economy, its economic growth rate exceeded the national rate, against a backdrop of increased capital investment centered on semiconductor-related industries.」

「The local Kyushu economy recovered at a faster pace than the national economy, in addition to following a similar trend, partly because capital investment increased in the semiconductor-related and logistics industries.」

「The local Kyushu economy recovered moderately, as personal consumption increased with the recovery in tourism and travel demand and capital investment, particularly semiconductor-related investment, progressed actively.」

「The local Kyushu economy recovered, with increases in semiconductor-related capital investment and personal consumption.」

「In fiscal 2021, the Japanese economy experienced periods of weakness in personal consumption and production due to the impact of COVID-19 and global supply constraints, but showed signs of recovery overall. However, toward the end of the fiscal year, uncertainty about the outlook increased as tensions surrounding the situation in Ukraine intensified. The local Kyushu economy also followed a similar trend to the national economy.」

「During the six-month period ended September 30, 2021, the Japanese economy showed weakness in some production sectors due to weak personal consumption resulting from the state of emergency declared in response to the spread of COVID-19 and semiconductor shortages, but recovered moderately. The local Kyushu economy also followed a similar trend.」

「The spread of the novel coronavirus has caused economic conditions in Fukuoka Prefecture to deteriorate, including sluggish consumption.」

「The local Kyushu economy, like the national economy, entered an extremely difficult situation, although signs of a recovery were observed in some areas, including automobile-related production, toward the end of the interim period.」

「The spread of the novel coronavirus has led to signs of worsening economic conditions in Fukuoka and Nagasaki prefectures, including stagnation in production and sluggish consumption.」

「Thereafter, some adverse effects from the torrential rains in western Japan and typhoons were observed, while overseas demand also showed signs of weakening in the second half of the fiscal year, and conditions gradually weakened.」

「Although the torrential rains in western Japan in July had some impact on agriculture and forestry, the local Kyushu economy generally remained firm, with production and exports staying at high levels against a backdrop of strong overseas demand, in addition to a moderate expansion in personal consumption.」

「Although the torrential rains in northern Kyushu in July had some impact on tourism, the local Kyushu economy generally continued to recover moderately, with production and exports increasing against a backdrop of improving employment conditions and growing overseas demand.」

「If economic conditions in Fukuoka Prefecture deteriorate, we may be unable to expand our business, and credit risk may increase. In addition, if a major natural disaster occurs mainly in Fukuoka Prefecture, it may adversely affect our group's operating results and financial condition, directly or indirectly, through damage to our group's assets and deterioration in the business conditions of borrowers, among other factors.」

「If economic conditions in Fukuoka Prefecture deteriorate, we may be unable to expand our business, and credit risk may increase. In addition, if a major natural disaster occurs mainly in Fukuoka Prefecture, it may adversely affect our group's operating results and financial condition, directly or indirectly, through damage to our group's assets and deterioration in the business conditions of borrowers, among other factors.」