Chugin Financial Group,inc. · TSE:5832
Chugin Financial Group,inc — H1 FY2025 Earnings Presentation
54 slides from Chugin Financial Group,inc's earnings presentation, Dec 1, 2025
Slide 1: 1H FY2025 Earnings Results Briefing
1H FY2025 Earnings Results Briefing December 1, 2025 Our challenges build our future. Chugin Financial Group, Inc.
Slide 2: What we would like to tell you today
Our challenges build our future. What we would like to tell you today Chugin Financial Group, Inc. Five consecutive years of Profit 27.4 billion yen FY2024 attributable to profit increase owners of parent (+6.1 billion YoY) Medium-term Management Plan Profit attributable 35.0 billion yen FY2025 KPI*
Slide 3: Table of Contents
Our challenges build our future. Table of Contents Chugin Financial Group, Inc. I. Earnings Results for 1H FY2025 and II. Toward Enhancement of Corporate Value Forecasts for FY2025 • Earnings Results for 1H FY2025 • Overview of the Medium-term Summary 5 Management Plan and Progress 13 Net Interest I
Slide 4: Section I Earnings Results for 1H FY2025 and Earnings Forecasts for FY2025
Section I Earnings Results for 1H FY2025 and Earnings Forecasts for FY2025 4
Slide 5: Earnings Results for 1H FY2025 —Summary—
Our challenges build our future. Earnings Results for 1H FY2025 —Summary— Chugin Financial Group, Inc. Profits increased year on year primarily due to growth in net interest income. * Forecast published on May 14, 2025 Factors behind change (Profit attributable to owners of parent) (billion yen) +7.
Slide 6: Earnings Results for 1H FY2025 —Net interest income—
Our challenges build our future. Earnings Results for 1H FY2025 —Net interest income (Non-consolidated for the Bank)— Chugin Financial Group, Inc. [Breakdown of net interest income (non-consolidated for the Bank)] Yen net interest income increased significantly. 6
Slide 7: Earnings Results for 1H FY2025 —Fee business-related revenues—
Our challenges build our future. Earnings Results for 1H FY2025 —Fee business-related revenues (Group total)— Chugin Financial Group, Inc. [Breakdown of fee business-related revenues (Group total)] FY2024 FY2025 (billion yen) 1H 1H YoY Fee business-related revenues 16.5 15.6 -0.9 The Chugoku Bank 13
Slide 8: Earnings Results for 1H FY2025 —Expenses and credit cost—
Our challenges build our future. Earnings Results for 1H FY2025 —Expenses and credit cost (non-consolidated for the Bank)— Chugin Financial Group, Inc. [Breakdown of expenses (non-consolidated for the Bank)] [Breakdown of credit cost (non-consolidated for the Bank)] FY2024 FY2025 (billion yen) 1H 1H
Slide 9: Earnings Forecasts for FY2025
Our challenges build our future. Earnings Forecasts for FY2025 Chugin Financial Group, Inc. Profit attributable to owners of parent 35.0 billion yen YoY + 7.6 billion yen ✓ The Chugoku Bank led the performance. (Net sales increased, and credit cost decreased.) + 2.0 billion yen Compared to initial f
Slide 10: Shareholder Returns
Our challenges build our future. Shareholder Returns Chugin Financial Group, Inc. 79 yen [FY2025] • Aiming for a dividend payout ratio of around 40%, increase dividends through profit growth Up 17 yen YoY Up 5 yen compared • Flexibly carry out share buybacks through capital control 62 yen 62 yen to
Slide 11: Cross-shareholdings
Our challenges build our future. Cross-shareholdings Chugin Financial Group, Inc. [Basic Policy] Reduction plan • We will limit cross-holdings to cases where it is determined necessary for the sustainable growth (March 31, 2027) and enhancement of the corporate value of the Group and the issuers. •
Slide 12: Section II Toward Enhancement of Corporate Value
Section II Toward Enhancement of Corporate Value 12
Slide 13: Medium-term Management Plan —Overview (Three growth strategies)—
Our challenges build our future. Medium-term Management Plan —Overview (Three growth strategies)— Chugin Financial Group, Inc. 1 “Deepening” of regional revitalization SDGs We will contribute to the “sustainable development of communities” by drawing out their appeal and potential. 2 Creation of inn
Slide 14: Medium-term Management Plan —Progress (KPIs)—
Our challenges build our future. Medium-term Management Plan —Progress (KPIs)—(On a consolidated basis for the FG, unless indicated otherwise) Chugin Financial Group, Inc. ⚫ Financial KPIs Financial KPIs FY2026 target FY2025 1H result [Reference] FY2024 results Upward 40.0 billion yen or more ➢ Prof
Slide 15: Medium-term Management Plan —Stock price trends—
Our challenges build our future. Medium-term Management Plan —Stock price trends— Chugin Financial Group, Inc. * Stock prices on March 31, 2023 set as 100 Index as of Nov. 25, 2025 260 TOPIX Bank stocks by industry Chugin FG 251 240 237 220 200 180 164 160 140 120 100 80 2023/3/31 2023/9/30 2024/3/3
Slide 16: Initiatives in the Long-term Management Plan
Our challenges build our future. Initiatives in the Long-term Management Plan Chugin Financial Group, Inc. Toward further Profit attributable to owners of parent 40.0 or (billion yen) profit growth more Five consecutive years of profit increase 35.0 Interest rate assumptions 27.4 [Japan] ・ Policy in
Slide 17: Capital Allocation
Our challenges build our future. Capital Allocation Chugin Financial Group, Inc. Ratio of common equity Tier 1 (Consolidated for the FG, excluding the valuation difference on available-for-sale securities, etc.) +0.7pt from -0.27 pt Dividends Share buybacks from -0.55 pt 12.0% Profit accumulation Pr
Slide 18: (Reference) Capital Management Approach
Our challenges build our future. (Reference) Capital Management Approach Chugin Financial Group, Inc. Tier2 Maintain high total capital Of which, valuation adequacy ratio by utilizing difference on Tier 2 capital available-for-sale securities, etc. • Strengthening growth investment • Additional shar
Slide 19: Future Initiatives
Our challenges build our future. Future Initiatives Chugin Financial Group, Inc. Boosting Net Sales 1. ✓ Accelerate strategies and measures by leveraging the unit system Acquiring Deposits, Allocation and Strategic Redeployment of Personnel 2. ✓ Obtain low-liquid deposits, which are important for as
Slide 20: Establishment of a Unit System
Boosting net Deposits/ Sustainable Our challenges build our future. Establishment of a Unit System sales Personnel Growth Chugin Financial Group, Inc. Business planning, business management, HR strategy ✓ Clarification of roles ✓ Rapid decision making FG Functions Business strategy unit Investment s
Slide 21: Business Strategy Unit —Asset business—
Boosting net Deposits/ Sustainable Our challenges build our future. Business Strategy Unit —Asset business— sales Personnel Growth Chugin Financial Group, Inc. Local development Average balance (billion yen) Regional Needs and characteristics issues Approx. Approx. 2,451.7 2,550.0 2,700.0 Manufactur
Slide 22: Business Strategy Unit —Fee business—
Boosting net Deposits/ Sustainable Our challenges build our future. Business Strategy Unit —Fee business— sales Personnel Growth Chugin Financial Group, Inc. A wide range of solutions The Bank and Group companies collaborations Further Chugin Human Innovations People Approx. 120% strengthening (From
Slide 23: Business Strategy Unit —Progress (asset business)—
Business Strategy Unit —Progress (asset business)—Boosting net Deposits/ Sustainable Our challenges build our future. sales Personnel Growth Chugin Financial Group, Inc. Local development Priority areas Strengthen efforts in six areas to address the issues and needs (Corporate strategy) of our custo
Slide 24: Business Strategy Unit —Progress (asset business)—
Business Strategy Unit —Progress (asset business)—Boosting net Deposits/ Sustainable Our challenges build our future. sales Personnel Growth Chugin Financial Group, Inc. ❶ Hiroshima Loan Center ❶ Okayama Life Plan Center Personal loans ❷ Hiroshima Kita Loan Center ❸ Fukuyama Life Plan Center ❶ Himej
Slide 25: Investment Strategy Unit —Structured finance—
Boosting net Deposits/ Sustainable Our challenges build our future. Investment Strategy Unit —Structured finance— sales Personnel Growth Chugin Financial Group, Inc. Initiatives for structured finance (loans from the headquarters) Local development Urban development Average balance (billion yen) ROR
Slide 26: Investment Strategy Unit —Securities management—
Investment Strategy Unit —Securities management—Boosting net Deposits/ Sustainable Our challenges build our future. sales Personnel Growth Chugin Financial Group, Inc. Initiatives for securities management Investment 27.5 Foreign currency bonds partnerships Unrealized 97.6 Continue investment while
Slide 27: Investment strategy unit —Progress—
Boosting net Deposits/ Sustainable Our challenges build our future. Investment strategy unit —Progress— sales Personnel Growth Chugin Financial Group, Inc. Loans Initiatives to raise RORA Headquarters Control Structured Approx. 1.3 trillion yen, RORA 1.72% (Strategic investment and market ✓ Common p
Slide 28: (Reference) Impact of Rising Domestic Interest Rates
(Reference) Impact of Rising Domestic Interest Rates Boosting net Deposits/ Sustainable Our challenges build our future. sales Personnel Growth Chugin Financial Group, Inc. Yen Balance Sheet (1H FY25 average balance: non-consolidated for the Bank) Yen net interest income forecast * A planned increas
Slide 29: Deposit Acquisition
Boosting net Deposits/ Sustainable Our challenges build our future. Deposit Acquisition sales Personnel Growth Chugin Financial Group, Inc. Current situation ✓ Solid share in the local area ✓ Low-liquid, stable deposits Other Kagawa Public funds, 4% etc. 5% Okayama Hiroshima 7% 13% Prefecture Corpor
Slide 30: Allocation and Strategic Redeployment of Personnel
Boosting net Deposits/ Sustainable Our challenges build our future. Allocation and Strategic Redeployment of Personnel sales Personnel Growth Chugin Financial Group, Inc. Operational process reforms ✓ Review on an across-the-Group basis Policy and ✓ Setting projects for each operation features ✓ In-
Slide 31: Initiatives that Capture the Community from a Wide Perspective
Initiatives that Capture the Community from a Wide Boosting net Deposits/ Sustainable Our challenges build our future. sales Personnel Growth Chugin Financial Group, Inc. Perspective (Collaboration with municipal governments) Character- Co-creation istics and DX・SX issues of the of appealing SX X Ok
Slide 32: Regional Sustainability: Startup support
Boosting net Deposits/ Sustainable Our challenges build our future. Regional Sustainability sales Personnel Growth Chugin Financial Group, Inc. Startup support Creating companies that represent the region Startup ecosystem ✓ Number of program Approx. 470 participants Startups and secondary startups
Slide 33: Regional Sustainability: Decarbonization
Boosting net Deposits/ Sustainable Our challenges build our future. Regional Sustainability sales Personnel Growth Chugin Financial Group, Inc. Decarbonization Local customers Reduction Recognition and Visualization target Reduction Disclosure understanding planning Topic Sustainability link loan Po
Slide 34: Regional Sustainability: Labor shortage
Boosting net Deposits/ Sustainable Our challenges build our future. Regional Sustainability sales Personnel Growth Chugin Financial Group, Inc. Labor shortage Recruitment service for the Bank employees (Mainly for bank employees aged 55 or older who have Topic reached the retirement age of their pos
Slide 35: Alliances and Partnerships
Boosting net Deposits/ Sustainable Our challenges build our future. Alliances and Partnerships sales Personnel Growth Chugin Financial Group, Inc. Wide-area collaboration ⚫ TSUBASA Alliance Cumulative revenue effect (billion yen) Syndicated loans * Effect on the Company Boosting net Boosting net sal
Slide 36: Cross-industry collaboration
Boosting net Deposits/ Sustainable Our challenges build our future. Alliances and Partnerships sales Personnel Growth Chugin Financial Group, Inc. Cross-industry collaboration Direction to be ✓ Mutual use of resources Co-creation of a prosperous pursued through ✓ Horizontal deployment of future with
Slide 37: Human Capital Investments and Diversity
Boosting net Deposits/ Sustainable Our challenges build our future. Human Capital Investments and Diversity sales Personnel Growth Chugin Financial Group, Inc. ❶ Human resource development aligned with management strategy ❷ Improving engagement Expanding investment • Allocate and develop human resou
Slide 38: Conclusion
Our challenges build our future. Conclusion Chugin Financial Group, Inc. FY2024 FY2025 FY2026 Toward Enhancement of Result Forecast KPI Corporate Value Net income 27.4 billion 35.0 billion 40.0 billion yen yen yen or more ROE improvement Sustainable growth through achieving KPIs for the future ROE 4
Slide 39: (Reference) Trends in ROE/PBR
Our challenges build our future. (Reference) Trends in ROE/PBR Chugin Financial Group, Inc. Cost of capital - our understanding - ROE (%) PBR (times) Calculated value based on the Around 9% PBR/ROE results FY2026 KPI: *ROE (based on the TSE) Estimated value 7% or more Including valuation difference
Slide 40: Section III Appendix (Major Numerical Figures)
Section III Appendix (Major Numerical Figures) 40
Slide 41: Earnings Results —Summary (Consolidated for the FG)—
Our challenges build our future. Earnings Results —Summary (Consolidated for the FG)— Chugin Financial Group, Inc. Net sales expanded significantly, mainly in net interest income. * Forecast published on May 14, 2025 41
Slide 42: Summary —Status of the Group Companies (Non-consolidated for the Bank)—
Summary －Status of the Group Companies (Non-consolidated for the Bank)－ Our challenges build our future. Chugin Financial Group, Inc. Net interest income increased significantly mainly due to asset expansion and rising domestic interest rates. 42
Slide 43: Summary —Status of the Group Companies (Excluding the Bank)—
Summary －Status of the Group Companies (Excluding the Bank)－ Our challenges build our future. Chugin Financial Group, Inc. Affected by the loss of a large project (The Chugin Lease) and the worsening market conditions (Chugin Securities), both ordinary profit and net income decreased year on year. O
Slide 44: Net Interest Income –Non-consolidated for the Bank–
Our challenges build our future. Net Interest Income –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Factors behind change in net interest income] [Loan yield] (%) 1.58 ■ Yen-based: ¥37.4 billion (+¥5.6 billion ■ Foreign currency-based: ¥6.6 billion 1.53 YoY) (+¥1.5 billion YoY) 1.41 •
Slide 45: Net Fee Income –Non-consolidated for the Bank–
Our challenges build our future. Net Fee Income –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Net fee income] (billion yen) +0.1 11.6 12.0 *: Assets in custody (investment trusts, insurance, municipal bonds, and 11.5 financial instrument brokerage) + inheritance-related business 9.9
Slide 46: Corporate Solution-related Revenues –Consolidated for the FG–
Our challenges build our future. Corporate Solution-related Revenues –Consolidated for the FG– Chugin Financial Group, Inc. [Corporate solutions-related revenues] Breakdown of Group companies (million yen) *1 Gross margin for The Chugin Lease, and operating revenues for other Group companies (after
Slide 47: Revenues Related to Assets in Custody –Consolidated for the FG–
Our challenges build our future. Revenues Related to Assets in Custody –Consolidated for the FG– Chugin Financial Group, Inc. [Revenues related to assets in custody] *1: Total of operating revenues for Chugin Securities and Chugin Asset Management Breakdown of Group companies (million yen) (after de
Slide 48: Expenses –Non-consolidated for the Bank–
Our challenges build our future. Expenses –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Expenses] (billion yen) 35.0 61.9% 53.7% 53.3% OHR +3.4 30.1 30.0 26.7 2.0 Taxes 26.0 1.7 25.0 Business management fee* 1.6 1.7 Impact of the transformation 1.0 to the FG 0.9 Approx. 0.8 billion y
Slide 49: Credit Costs and Non-performing Loans –Non-consolidated for the Bank–
Our challenges build our future. Credit Costs and Non-performing Loans –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Non-performing loans (NPL) (Loans disclosed under [Credit costs] (billion yen) the Financial Revitalization Act)] (billion yen) Other credit costs* * The Chugoku Bank
Slide 50: Deposits & Assets in Custody –Non-consolidated for the Bank–
Our challenges build our future. Deposits & Assets in Custody –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Average balance of deposits and assets in custody] (billion yen) +3.8% 9,773.2 (8,511.2) 10,000.0 Total assets in custody 9,406.9 (Deposits + NCD) 9,200.8 (8,289.5) (8,158.4) 2
Slide 51: Loans –Non-consolidated for the Bank–
Our challenges build our future. Loans –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Average loan balance] +5.2% 6,604.1 7,000.0 (billion yen) 6,272.0 113.0 5,642.2 70.8 Overseas branches +4.5% 6,000.0 42.0 1,331.7 Loans from the 1,273.4 headquarters*3 857.3 5,000.0 386.1 Local gover
Slide 52: Securities –Non-consolidated for the Bank–
Our challenges build our future. Securities –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Average balance of securities] [Unrealized gains/losses] +334.9 (billion yen) 2,908.4 3,000.0 23.2 106.5 2,573.5 192.2 25.5 Investment 94.7 partnerships 2,269.0 158.4 +13.9 21.5 515.5 Equity 78.
Slide 53: Status of Capital Adequacy –Consolidated for the FG–
Status of Capital Adequacy －Consolidated for the FG－ Our challenges build our future. Chugin Financial Group, Inc. The ratio of common equity Tier 1 (excluding the valuation difference on available-for-sale securities, etc.) remained mostly in the middle of the control range (11% to 12%). [Capital a
Slide 54: Chugin Financial Group, Inc.
Our challenges build our future. Chugin Financial Group, Inc. This material contains forward-looking statements. These statements do not guarantee our future business performance and include risks and uncertainties. It should be noted that future performance may differ from the targets mentioned her
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