Message from the President

　Thank you for your continued patronage of The Bank of Iwate.

　The finance industry is at a pivotal juncture, unprecedented in recent years, as it contends with sustained interest rate increases and mounting competitive pressures from non-financial players entering the sector. Against this backdrop, in FY2025, the culminating year of our previous Medium-Term Management Plan, The Bank of Iwate's core net business profit reached 16.7 billion yen, reflecting the profitability of our core businesses, and consolidated net income reached 8.9 billion yen. Both figures exceeded the previous fiscal year's results, driven by an increase in interest income--primarily interest on loans and discounts and interest and dividends on securities, which are the pillars of our revenue.

　In light of our past achievements and challenges, as well as the rapidly changing business environment, we have launched The Bank of Iwate Group's 22nd Medium-Term Management Plan--Regional Value Co-Creation Plan: The 2nd, covering the period from April 2026 to March 2029. Under this plan, we will pursue social and environmental value alongside economic value, through a business model that balances these dual objectives. We are committed to earnestly addressing regional challenges, supporting sustainable regional growth, and establishing a virtuous cycle in which the outcomes of these efforts will drive the growth of The Bank of Iwate Group. We have set consolidated ROE targets of 6.0% or higher for FY2028 and 7.5% or higher for FY2032, and we remain dedicated to pursuing even higher performance in the years ahead.

　With respect to shareholder returns, we revised our dividend policy in November 2025, introducing a progressive dividend framework and raising the target payout ratio to 40% or above. We also conducted a 4-for-1 stock split, effective April 1, 2026, as part of our ongoing efforts to improve stock liquidity and expand our investor base.

　At The Bank of Iwate Group, we will continue to strengthen initiatives that contribute to the development of the regional economy and remain steadfast in our efforts to further enhance corporate value, in pursuit of our long-term vision to become a "value co-creation company that will solve our customers' issues and drive the sustainable growth of the local community." We kindly request your continued support.

Toru Iwayama
President