Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — H1 FY2011 Earnings Presentation
26 slides from Bank Of The Ryukyus,limited's earnings presentation, Nov 11, 2011
Slide 1: IS) HIE
IS) HIE noah at ew
Slide 2: Contents
Contents . Financial and Economic Environment Economic Trends BIS Capital Ratio Tourism Earnings Forecast for FY2011 Construction . Medium-Term Management Plan . Financial Results for 1HFY2011 Positioning of fiscal 2011 management plan 1HFY2011 Results Summary Theme of fiscal 2011 management plan 1H
Slide 3: Economic Trends
Economic Trends Pickup on recovery in tourism-related industries Bank of Japan "Tankan" Employed persons(right axis) (Thousand persons) Diffusion Index Ratio of Unemployed in Labor Force All Japan Employed persons(right axis) Okinawa Prefecture Ratio of Unemployed in Labor Force (Note)Bank of Japan
Slide 4: Tourism
Tourism Clear recovery momentum has emerged, following the slump in inbound Okinawa tourists immediately after the Great East Japan Earthquake Number of tourists and revenues from tourism Monthly trends in tourist arrivals (Thousands) (Billions of Yen) Revenues From tourism(right axis) Number of tou
Slide 5: Construction
Construction Value of public works contracts decreased in reaction to early ordering resulting from last year’s economic policies Number of Housing Starts in Okinawa Prefecture (Thousands) Orders Received for Public Works Projects Owned houses Rented houses (billions of Yen) Condominiums Central gov
Slide 6: 1HFY2011 Results Summary
1HFY2011 Results Summary Net business profit on core banking operations decreased due mainly to lower net interest income (Billions of Change Yen) Core business gross profit Net interest income Interest and dividend income on securities Fees and commissions E x p e n s e s Net business profit on cor
Slide 7: 1HFY2011 Results Summary
1HFY2011 Results Summary Interim net income was broadly on target Change (Billions of Yen) Net business profit on Core banking operations Loan write-offs, etc. Reversal of reserve for possible loan losses Gains from bad debts recovered Losses on securities O r d i n a r y p r o f i t Reversal of res
Slide 8: Loans
Loans Loans to individuals including mortgage and apartment development loans performed well Balance of Loans Busines Loans (Billions of Yen) Real estate Wholesale and retail Billions of To local government and other public entities Construction Others Yen To corporations To individuals (Billions of
Slide 9: Deposits and Assets in Custody
Deposits and Assets in Custody Individual, corporate and public-sector deposits continued to perform well (Billions Assets in Custody Individual pension insurance Billions of Balance of Deposits and Assets in custody of Yen) Investmenttrusts Yen Governmentbonds Total of Deposits Assets in Custody No
Slide 10: Gains/losses on securities
Gains/losses on securities Limited impact from falling stock prices (Billions of Yen) Gains/losses on securities YoY percentage change in Nikkei stock average at end of fiscal year Gains/losses on stock transactions Gains/losses on JGBs and other bonds Gains/losses on securities (1HFY11) Gains/losse
Slide 11: Expenses
Expenses Reduction in non-personnel expenses due chiefly to computer system costs (Billions of Yen) Expenses Number of Employees Personnel expenses Non-personnel expenses Number of regular employees Number of nonregular employees taxes Core OHR(right axis Non-personnel Expenses (Billions of Yen) Aut
Slide 12: Credit Costs
Credit Costs Even with rising corporate bankruptcies, NPL disposal remained at low levels Land Price (Billions of Yen) Credit Costs Three major metropolitan areas(average for all forms of land use) Special factors,etc Okinawa Prefecture(average for all forms of land use) Deteriorating buisiness envi
Slide 13: NPLs
NPLs* Total and ratio of NPLs kept low (Billions of Yen) Balance of NPLs* Breakdown of the factors behind Change in NPLs* (Billions of Yen) Bankrupt claims and those of similar nature Removal from balance sheet,etc Doubtful claims Upgrading(asset categories) Chages in asset categories under mandator
Slide 14: BIS Capital Ratio
BIS Capital Ratio Up on earnings accumulation despite a dip due to repayment of public funding and redemption of subordinated bonds Deferred tax assets as a percentage of Tier 1 capital BIS ratio Tier capital excluding deferred tax assets (Billions Tier capital:deferred tax asetts of Yen) Proportion
Slide 15: Earnings Forecast for FY 2011
Earnings Forecast for FY 2011 Higher revenues and earnings expected from strengthened marketing of loans to businesses and individuals, greater use of ATMs in convenience stores for salary remittances, and promotion of cross-selling of different types of financial products Billions of Yen Year-on-ye
Slide 16: Positioning of fiscal 2011 management plan
Positioning of fiscal 2011 management plan In fiscal 2011, the second year of the medium-term management plan, new measures will be introduced to assure plan achievement Management Targets Improve and expand business foundation for next leap forward In a new growth stage, contributing to local econo
Slide 17: Theme of fiscal 2011 management plan
Theme of fiscal 2011 management plan The theme selected for our fiscal 2011 management goals is “Stronger marketing, human resources and functional innovation” and the following measures have been set Theme Key measures Measures to raise earning capacity Description Expand earning base Develop syste
Slide 18: Strengthened business innovation – Channel strategy
Strengthened business innovation – Channel strategy Finished installing ATMs at key convenience stores in Okinawa. Increase contact with customers by establishing more mini branches and opening new Loan Centers First half – Fiscal 2010 Second half – Fiscal 2010 To be implemented in fiscal 2011 Insta
Slide 19: Strengthened business innovation – Build up loan business
Strengthened business innovation – Build up loan business Under wide-area bloc system, increased loan volume through stronger marketing to business clients and promoted mortgage and consumer loans First half – Fiscal 2010 Second half – Fiscal 2010 To be implemented in fiscal 2011 Launched “TKC loan”
Slide 20: Strengthened business innovation – Gather additional deposits
Strengthened business innovation – Gather additional deposits by developing innovative deposit products Leverage expanded channels and fortify earning capacity by gathering more deposits First half – Fiscal 2010 Second half – Fiscal 2010 To be implemented in fiscal 2011 Finished installing ATMs at a
Slide 21: Strengthened business innovation – Enhance service revenue
Strengthened business innovation – Enhance service revenue Increase sales of investment trusts and life insurance by offering products that meet demands resulting from the redemption of JGBs by individual customers, and reorganizing the sales force First half – Fiscal 2010 Second half – Fiscal 2010
Slide 22: Strengthened business innovation – Consulting business
Strengthened business innovation – Consulting business Strengthen relations through stronger ability to solve customers’ problems. Increase consulting revenue through M&A, business succession, and other consulting services First half – Fiscal 2010 Second half – Fiscal 2010 To be implemented in fisca
Slide 23: Strengthened human resources innovation
Strengthened human resources innovation Establish college within company and train highly professional staff. Revitalize organization by creating positions that take advantage of employees with long working experience First half – Fiscal 2010 Second half – Fiscal 2010 To be implemented in fiscal 201
Slide 24: Strengthened Functional innovation
Strengthened Functional innovation Increase earning capacity and secure a stable financial base by strengthening marketing capabilities based on organization review First half – Fiscal 2010 Second half – Fiscal 2010 To be implemented in fiscal 2011 Acquired and retired public Since we secured a suff
Slide 25: Key Numerical Forecasts
Key Numerical Forecasts Key Numerical FY2010 FY2011 Increase Average balance of deposits ¥1,541.4 billion ¥1,640.0 billion ¥98.6 billion Average balance of loans and bills discounted ¥1,163.6 billion ¥1,170.0 billion ¥6.4 billion Loans guaranteed by Okinawa Credit Guarantee Corp ¥25.1 billion ¥30.0
Slide 26: About This Presentation
About This Presentation All enquiries regarding this presentation should be addressed to: Bank of the Ryukyus,Limited General Planning Department Telephone: +81-98-860-3787 Fax: +81-98-862-3672 E-mail: ryugin@ryugin.co.jp The information in this presentation is on a non-consolidated basis unless oth
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