Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2014 Earnings Presentation
41 slides from Bank Of The Ryukyus,limited's earnings presentation, May 2015
Slide 1: Bank of the Ryukyus Management Briefing for FY2014
Bank of the Ryukyus Management Briefing for FY2014 By Chie Tengan Winner of the 23nd (fiscal 2014) Bingata Design Contest presented by the Bank of the Ryukyus
Slide 2: The Financial and Economic Environment of Okinawa Prefecture
The Financial and Economic Environment of Okinawa Prefecture
Slide 3: Overview of Okinawa Prefecture
■Overview of Okinawa Prefecture Prefectural Income ¥2.03 million (worst in Japan, 2012) 1.07% (highest in Japan: 2007-2020 forecast rate of Forecast rate (per person) * National average: ¥2.97 million real economic growth (Japan Center for Economic of economic growth Research)) ¥6.28 million (worst
Slide 4: Regional Economic Climate Chart (May 2015)
■Regional Economic Climate Chart (May 2015) 2014 2015 Personal Residential Facility Exports Production Employment May ～ May consumption construction investment Public works activities Tourism conditions HOKKAIDO AREA TOHOKU AREA KANTO ARE KOSHINETSU AREA HOKURIKU AREA TOKAI AREA KINKI AREA CHUGOKU A
Slide 5: Economic Trends (Bank of Japan Tankan)
■Economic Trends (Bank of Japan Tankan) Level exceeded 20 over five periods for first time in 23 years Bank of Japan Tankan （ Business condition diffusion index : Strong-Week） Mar.2015 Japan Okinawa +24 40 30 20 10 0 -10 Mar.2015 +7 -20 -30 -40 -50 -60 Feb.’92 Feb.’93 Feb.’94 Feb.’95 Feb.’96 Mar.’97
Slide 6: Projected Population
■Projected Population Okinawa Prefecture’s population is projected to increase for the foreseeable future Projected Population （ 1995＝ 100） Japan Okinawa Peak 115 111.3 111.0 110.7 110.3 109.4 109.2 106.9 107.5 103.5 105 100.0 101.7 101.9 100.8 98.8 101.0 96.0 100.0 95 92.8 89.2 85.4 85 75 10 Years
Slide 7: Projected Population: Working-Age Population Already in Decline
■Projected Population Working-Age Population Already in Decline (Persons) Okinawa Prefecture Popuration Trends 1, 6 0 0, 0 0 0 Actual values Estimated value Total population 1, 4 0 0, 0 0 0 1, 2 0 0, 0 0 0 1, 0 0 0, 0 0 0 Working-age population 8 0 0, 0 0 0 6 0 0, 0 0 0 Elderly population 4 0 0, 0 0
Slide 8: Employment
■Employment Improving trend in Employment 9.0% Trends in the overall unemployment rate Japan Aeon Mall Okinawa Rycom opened April 25, 2015 8.0% Okinawa 7.0% 6.0% 5.4% 5.0% 4.0% 3.6% 3.0% 2.0% 1.0% 0.0% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 9: Trends in Land Prices
■Trends in Land Prices Upward trend in prices within the Prefecture for both commercial- and residential-use land Commercial-use land (YoY) Residential-use land (YoY) Japan Okinawa Japan Okinawa 14.0% 14.0% 12.0% 12.0% 10.0% 10.0% 8.0% 8.0% 6.0% 6.0% 4.0% 4.0% 2.0% +0. 8% 2.0% +0.6% 0.0% 0.0% -2.0%
Slide 10: Long-Term Forecasts for Tourists from Overseas
■Long-Term Forecasts for Tourists from Overseas In 2013, the global number of overseas tourists is expected to reach 180 million Actual and forecast numbers of international tourists by arrival point （ Millions） 2,000 Middle East 1,809 1,800 Africa 149 1,600 134 America 1,360 1,400 Asia-Pacific 248
Slide 11: Tourism
■Tourism For two years in succession, visitor numbers to Okinawa have been all-time highs of more than 7 million! Visitors from overseas (Left scale) Visitors from other parts of Japan (Left scale) Revenues from tourism (Right scale) (Thousands) (Billions of Yen) 9,000 500 ？ 436.4 433.9 8,000 450 40
Slide 12: Financial Results for FY2014
Financial Results for FY2014
Slide 13: Financial Highlights
■Financial Highlights Onconsolidated On consolidatedbasis, basis,record recordhighs highsfor forordinary ordinaryrevenue/ordinary revenue/ordinaryincome Results Results Onnon-consolidated On non-consolidatedbasis, basis,increased increasedrevenue revenueandandearnings earningsfor fortwo income t
Slide 14: Factors Contributing to Non-consolidated/Consolidated Differences in Net Income
■Factors Contributing to Non-consolidated /Consolidated Differences in Net Income for Current Fiscal Year Non-consolidated/consolidated scale factor attributable to making Ryukyu Leasing a consolidated subsidiary: 1.29 times Factors Contributing to Non-consolidated/Consolidated Differences in Net In
Slide 15: Factors Behind the Change in Net Income (Non-Consolidated)
■Factors Behind the Change in Net Income (Non-Consolidated) Increase in earnings due to such factors as increase in net business profits, decrease in credit limit costs Factors Behind the Change in Net (Billions of Yen） Income (Non-Consolidated) (Millions of Yen) 6 149 7 603 -808 Improvement in gain
Slide 16: Factors Behind the Change in Real Net Business Profit
■Factors Behind the Change in Real Net Business Profit (Non-Consolidated) Four consecutive periods of increases due to such factors as increases in interest and dividends on securities (Billions of Yen) Factors Behind the Change in Real Net Business 12 Profit (Non-Consolidated) (Millions of Yen) 78
Slide 17: Loans (Non-Consolidated)
■Loans (Non-Consolidated) Favorable increases in both private and corporate businesses ■Loans (Non-Consolidated) (Billion of Yen) 13,992 1,399.2 1,400 1,330.0 Local public 120.7 authorities 1,210.6 1,216.6 1,241.6 121.1 1,209.5 and other 1,200 109.7 124.7 127.9 114.5 584.0 Corporations 1,000 559.7 5
Slide 18: Business Loans (Non-Consolidated)
■Business Loans (Non-Consolidated) Increase mainly in loans to the real estate sector including apartment loans as well as the medical and welfare sector Business Loans (Non-Consolidated) Real estate, rental and leasing Wholesale and retail Construction Medical and welfare Manufacturing Others (Bill
Slide 19: Estimates of the Number of Households
■Estimates of the Number of Households Continued increase in the number of households Estimates of the Number of Households （ 1995＝ 100） Japan Okinawa 145.5 143.0 145 139.6 135.1 135 128.9 120.8 Peak 125 114.5 115.2 114.8 113.5 115 110.3 111.7 111.1 105 100.0 106.5 95 100.0 85 75 65 1995 2000 2005 2
Slide 20: Consumer Loans (Non-Consolidated)
■Consumer Loans (Non-Consolidated) Favorable increase due to sales of new products and other factors Consumer Loans (Non-Consolidated) (Billions of Yen) 500 476.1 454.9 450 430.7 69.6 64.1 Other loans 406.2 （8.5％） 60.3 （6.3％） 400 382.2 369.4 59.0 （2.3％） 58.6 （0.7％） 350 58.8 （▲0.3％） （0.2％） 300 250 40
Slide 21: Deposits (Non-Consolidated)
■Deposits (Non-Consolidated) Increases in personal, corporate and public funds, exceeding ¥1,900 billion yen (Billions of Yen) Deposits (Non-Consolidated) 2,200 (4.5%) (4.7%) 2,000 (2.2%) 1,967.2 (7.2%) 1,882.8 Public funds 179.4 1,800 1,758.9 1,797.8 161.9 (7.7%) 129.3 (7.3%) 1,640.7 165.2 1,600 1,
Slide 22: Assets in Custody (Non-Consolidated)
■Assets in Custody (Non-Consolidated) Balance of assets in custody increased due to favorable sales of insurance and investment trusts （ Billions of Yen） Aggregation method for single-premium insurance 200 195.9 Cumulative sales total Balance 180.7 162.5 36.9 164.6 (7.5%) 40.7 150.7 151.1 150 47.0 3
Slide 23: Securities (Non-Consolidated)
■Securities (Non-Consolidated) Balance buildup while operations diversified （ Billions of Yen） Securities (Non-Consolidated) 800 700 600 577.6 525.5 107.7 Other (foreign bonds, etc.) 466.2 29.0 500 456.1 13.1 22.6 19.4 15.3 16.1 12.6 Local government bonds 400 365.4 204.0 26.4 122.7 187.5 Bonds 13.5
Slide 24: Earnings Forecasts for FY2015 (Non-Consolidated)
■Earnings Forecasts for FY2015 (Non-Consolidated) Four consecutive periods of increased earnings forecast for current fiscal year （Billions of Yen） 45.0 39.1 Ordinary revenue 40.0 37.9 38.7 38.7 37.5 35.0 30.0 25.0 20.0 15.0 Ordinary profit 10.0 8.0 7.3 6.3 Net income 5.2 4.5 4.2 4.8 5.0 2.3 2.4 3.4
Slide 25: Earnings Forecasts for FY2015 (Consolidated)
■Earnings Forecasts for FY2015 (Consolidated) Significant increase in earnings ultimately expected following the making of OCS, Ltd. into a subsidiary （Billions of Yen） 60.0 57.4 55.0 50.0 Ordinary revenue 40.5 39.3 39.9 40.0 30.0 20.0 Ordinary profit 9.5 8.9 9.9 10.0 7.4 5.7 5.6 4.9 5.5 Net income
Slide 26: Bank of the Ryukyus Strategy
Bank of the Ryukyus Strategy
Slide 27: Long-Term Vision
■Long-Term Vision By providing value that is unmatched by other financial institutions and unique to us, we aim to remain “the Bank of the Ryukyus Group that is our customers’ bank of preference and enjoys the overwhelming support of the local community.” The Bank of the Ryukyus Group that is our c
Slide 28: Strategic Systems
■Strategic Systems Management Philosophy A bank that is cherished and enjoys the trust of those in the local area and contributes to the development of local communities Long-Term Vision While providing the three “S’s,” the Bank of the Ryukyus Group is our customers’ bank of preference and enjoys th
Slide 29: New Medium-Term Management Plan: Shared Value 2015
■New Medium-Term Management Plan (April 2015 to March 2018) Shared Value 2015 －Establishing value provided to customers by displaying the Group’s comprehensive capabilities－ Corporate Business Strategy Individual Business Strategy Growth Strategies Promote comprehensive trading by ‐Provide growth-fi
Slide 30: Medical/Welfare Field (Corporate Business Strategy)
■Medical/Welfare Field (Corporate Business Strategy) Based on declining birth rate and growing proportion of elderly people, strengthen support systems geared toward medical/welfare field Development of Human Resources Familiar with Trends in Outstanding Loans for Medical/Welfare Field Medical Manag
Slide 31: Support for Ryugin Sixth Industrialization Fund
■Support for Ryugin Sixth Industrialization Fund (Corporate Business Strategy) Proactively support business development, etc. by Ryugin Sixth Industrialization Fund Fund Composition First Project Bank of the Ryukyus Ryugin Sixth Agricultural, forestry, and fishery business operators Agriculture, For
Slide 32: Support for Manufacturing (Corporate Business Strategy)
■Support for Manufacturing (Corporate Business Strategy) Injection of capital into fund to support manufacturing industry development in Okinawa Okinawa Manufacturing Promotion Fund State Limited liability association member Okinawa Capital injection Subsidies First Project Manufacturing Capital inj
Slide 33: Industry-Academia Collaboration
■ Industry-Academia Collaboration (Corporate Business Strategy) Utilizing Bank of the Ryukyus networks to match University of the Ryukyus with local companies Industry-Academia-Government Partnership Agreement with University of the Ryukyus Seeds of Each Faculty’s Research Sales Store Trading Needs
Slide 34: Sales Channel Expansion Support
■Sales Channel Expansion Support (Corporate Business Strategy) Support for overseas development by joint holding of business forum by three Okinawan financial institutions Third Business Forum to Convey Okinawa’s Culinary and Visual Charms Held June 4 【Overview】 Participating 68 Companies companies
Slide 35: Overseas Networks
■Overseas Networks Building frameworks capable of responding to various overseas development needs Halal Japan Business Association Halal Overseas Tokio Marine & Nichido Fire Insurance Co., Ltd. Tokio Marine & Nichido Fire Insurance Co., Ltd. business development support support Brand Research Insti
Slide 36: Expansion of Product/Service Lineups
■Expansion of Product/Service Lineups (Individual Business Strategy) Expansion of product/service lineups in tune with customers’ varying life plans Products that meet customer needs An Okinawan Bank First! Cashback loan sales commenced January 2015! An Okinawan Bank First! Reverse mortgage sales co
Slide 37: Group Strategy
■Group Strategy Provide comprehensive services that leverage Group capabilities Ryugin DC Co., Ltd. Ryugin Research Institute., Ltd. Ryugin Business Service Co., Ltd. Ryugin Hosho Co., Ltd. April 2014 Ryugin Hosho Co., Ltd . made wholly owned subsidiary April 2014 Ryukyu Leasing Co., Ltd. made conso
Slide 38: IT/Sales Information Strategy
■IT/Sales Information Strategy Evolution of One-to-One marketing Mobile PC Multi-Channel From February 2014 Distribution of iPad600 devices SNS Tel April 2015 Introduction of mobile printers Sales support systems Home visits May 2014 BankNeo sales support system fully operational Range of workplaces
Slide 39: Organizational/Business Process Reengineering (BPR) Strategy
■Organizational/Business Process Reengineering (BPR) Strategy Develop branches that make customers feel at home Makabi Branch opened March 2013 Ohjana Branch opened t yle February 2015 S a fé C Chatan Loan Center opened September 2013
Slide 40: Human Resource Strategy
■ Human Resource Strategy Train human resources who have provided expertise based on high level of their capabilities Trends in Numbers of Professionally Qualified Personnel Azukari Archive Meisters (Staff) Agricultural Management Adv isors 3 140 25 Personal Property Assessment Adv isors 120 4 Medic
Slide 41: 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 ot