Chugin Financial Group,inc. · TSE:5832
Chugin Financial Group,inc — FY2022 Earnings Presentation
55 slides from Chugin Financial Group,inc's earnings presentation, Mar 1, 2023
Slide 1: FY2022 Earnings Results Briefing (References)
FY2022 Earnings Results Briefing (References)
Slide 2: Table of Contents of the References
Table of Contents of the References Economic Structure of Okayama Prefecture Management Indicators, etc. for Chugin Financial Group, Inc. Economic Scale of Okayama Prefecture 4 Comprehensive Income Table 22 Economic Structure of Okayama Prefecture 6 Capital Adequacy Ratio 23 Growth Infrastructure an
Slide 3: Economic Structure of Okayama Prefecture
Economic Structure of Okayama Prefecture
Slide 4: Economic Scale of Okayama Prefecture
Economic Scale of Okayama Prefecture Nationwide Items Results Rank Source Survey date share (%) Nationwide Survey on Area 7,114 k㎡ 1.9 17 Jul. 2022 Area by Municipality Population 1,879,000 people 1.5 20 Population Estimates Jan. 2022 Number of households 861,452 1.4 18 Population Estimates Jan. 202
Slide 5: Economic Scale of Okayama Prefecture
Economic Scale of Okayama Prefecture (Trillion yen) Gross Domestic Product by Prefecture at Current Prices and YoY Change (%) 45 116 5 40 YoY growth (Right scale) 35 30 0 25 20 Gross prefectural domestic 15 product at current prices -5 (Left scale) 10 5 0 -10 Ishikawa Okinawa Mie Tochigi Hyogo Kanag
Slide 6: Industrial Structure of Okayama Prefecture (1)
Industrial Structure of Okayama Prefecture (1) Percentage mix of gross domestic Professional/science product by economic activity technology, business Finance, support services Construction insurance Health and hygiene, Wholesale, Manufacturing Transport, postal Public Education Information & Real e
Slide 7: Industrial Structure of Okayama Prefecture (2)
Industrial Structure of Okayama Prefecture (2) Percentage mix of value of manufactured goods shipments (2020) Food and General Electric Transport (%) beverages Textiles Chemicals Petroleum Steel machinery machinery machinery Other Okayama 10.6 2.8 14.9 15.8 11.1 7.7 6.5 12.2 18.4 Nationwide 12.9 1.1
Slide 8: Growth Infrastructure and Potential of Okayama Prefecture (1)
Growth Infrastructure and Potential of Okayama Prefecture (1) Population and number of households of the Chugoku-Shikoku region (Persons, households) Tottori Shimane Okayama Hiroshima Yamaguchi Tokushima Kagawa Ehime Kochi (%) 3,000,000 2.0 Population Number of households Change in population Change
Slide 9: Growth Infrastructure and Potential of Okayama Prefecture (2)
Growth Infrastructure and Potential of Okayama Prefecture (2) Future population estimates of Okayama Prefecture (Thousand) 2,000 Estimates 1,950 1,922 1,900 1,888 1,846 1,850 1,797 1,800 1,750 1,742 1,700 1,681 1,650 1,620 1,600 1,550 1,500 2015 2020 2025 2030 2035 2040 2045 Source: Regional Populat
Slide 10: Growth Infrastructure and Potential of Okayama Prefecture (3)
Growth Infrastructure and Potential of Okayama Prefecture (3) Cross points of land transportation in Western Japan Highways intersect in the shape of one vertical line with two horizontal lines. The Japan Sea Expressway, and Seto Chuo Expressway Yonago Expressway, Okayama Chugoku Expressway Sanyo Ex
Slide 11: Growth Infrastructure and Potential of Okayama Prefecture (4)
Growth Infrastructure and Potential of Okayama Prefecture (4) Freight forwarding volume in the Chugoku-Shikoku region (Million ton-km) 7,000 Thousands 6,000 5,000 4,000 3,000 2,000 1,000 0 Tottori Shimane Okayama Hiroshima Yamaguchi Tokushima Kagawa Ehime Kochi Source: Annual Report of Road Transpor
Slide 12: Growth Infrastructure and Potential of Okayama Prefecture (5)
Growth Infrastructure and Potential of Okayama Prefecture (5) High potential for renewable energy generation by taking advantage of the prefecture’s many sunny days Weather Okayama Prefecture is a “sunny prefecture” that is blessed with a mild climate with little rainfall. Source: Okayama Prefecture
Slide 13: Economic Conditions of Okayama Prefecture
Economic Conditions of Okayama Prefecture
Slide 14: Local Economic Trends (1)
Local Economic Trends (1) The economy of Okayama Prefecture is heading for recovery amid the weakening of the impact of COVID-19. Terrorist attacks on the US BOJ quantitative easing Sub-prime mortgage crisis Collapse of Lehman Brothers Asian financial crisis Consumption tax hike 13.5 IT bubble Consu
Slide 15: Local Economic Trends (2)
Local Economic Trends (2) Industrial production: Weakening against the backdrop of the global economic slowdown and other factors [Industrial production index] (2015 indexed at 100; seasonally adjusted) 110 100 90 80 2018/1 2019/1 2020/1 2021/1 2022/1 2023/1 Source: Okayama Prefecture Statistical An
Slide 16: Local Economic Trends (3)
Local Economic Trends (3) Capital investment: Picking up mainly in the manufacturing industry [YoY change in capital investment] Okayama Nationwide (%) Manufacturing Non-manufacturing Total Manufacturing Non-manufacturing Total FY2020 result - 19.9 - 6.5 - 16.0 - 10.0 - 7.5 - 8.5 FY2021 result - 10.
Slide 17: Local Economic Trends (4)
Local Economic Trends (4) Consumer spending: Heading for recovery amid the weakening of the impact of COVID-19 [Department store and supermarket sales (all stores; YoY)] (%) 15 10 5 0 -5 -10 -15 2019/1 2020/1 2021/1 2022/1 2023/1 Source: Chugoku Bureau of Economy, Trade and Industry [New passenger c
Slide 18: Local Economic Trends (5)
Local Economic Trends (5) Housing investment: Slowing down due to rising construction costs, etc. [New housing starts (six-month moving average)] (Units) 1,400 1,200 1,000 800 600 2019/1 2020/1 2021/1 2022/1 2023/1 Source: MLIT [Rental housing starts (six-month moving average)] (Units) 600 400 200 2
Slide 19: Local Economic Trends (6)
Local Economic Trends (6) Employment situation: Gradually picking up [Jobs-to-applicants ratio (seasonally adjusted)] (Times) 2.2 2.0 1.8 1.6 1.4 1.2 2019/1 2020/1 2021/1 2022/1 2023/1 Source: Employment Service Section, Okayama Labour Bureau, Ministry of Health, Labor and Welfare [Total sum of cash
Slide 20: Local Economic Trends (7)
Local Economic Trends (7) Land prices: Moving toward recovery [Official land price (YoY)] (%) 2.0 1.0 Residential area 0.0 Commercial area -1.0 -2.0 -3.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: Hilly and Mountainous Areas Development Division, Okayama Prefecture Corporate bank
Slide 21: Management Indicators, etc. for Chugin Financial Group, Inc.
Management Indicators, etc. for Chugin Financial Group, Inc. (Note) As the Company was established on October 3, 2022, there are no consolidated figures for FY2021 (and as of March 31, 2022). However, for a reference purpose, the consolidated figures for FY2021 (and as of March 31, 2022) of the form
Slide 22: Summary of Earnings
Summary of Earnings 【consolidated】 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (Million yen) 1H 1H 1H 1H 1H Ordinary revenue 64,758 128,621 63,780 127,318 58,173 116,976 60,594 128,565 91,459 183,586 Banking revenue 60,939 119,894 59,142 117,217 54,772 107,330 56,758 116,87
Slide 23: Capital Adequacy Ratio
Capital Adequacy Ratio [Non-consolidated] (%, Billion yen) 1H FY2019 FY2019 1H FY2020 FY2020 1H FY2021 FY2021 1H FY2022 FY2022 Overall capital adequacy ratio 13.25 12.70 12.63 13.01 13.41 13.23 12.17 11.92 Tier 1 ratio 13.25 12.70 12.63 12.77 13.17 12.98 11.92 11.67 Tier 1 ratio including common sha
Slide 24: Capital Allocation and Integration Risks
Capital Allocation and Integration Risks 2H FY2022 Result FY2023 Plan [Allocation source] (billion yen) [Allocation source] Figures in parentheses represent (billion yen) Acceptable risk level comparison with 2H FY2022. (1) Allocated capital (1) Allocated capital 479.4 Integration risk 497.5 End of
Slide 25: Use of Allocated Capital and Risk Exposure Assumptions
Use of Allocated Capital and Risk Exposure Assumptions The following table indicates capital allocation and integration risks in 2H FY2022 and capital allocation in FY2023. （単位：億円） (billion yen) 2022年度下半期 2H FY2022 2023年度 FY2023 Risk exposure 配賦額 Value リスク量（2023年3月末） (as of end of Mar. 2023) 配賦額 Val
Slide 26: Status of Group Companies
Status of Group Companies Business line Effective FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (million yen; %) equity ratio １H interim １H interim １H interim Ordinary income 6,370 12,453 6,534 13,339 7,006 17,461 The Chugin Lease Company, Leasing 100.00 Ordinary profit 446 537 24 248 188 3,640 Limited*
Slide 27: Key Press Releases
Key Press Releases 2022 October 3: [FG] Notice Regarding the Establishment of “Chugin Financial Group, Inc.” and Restructuring of Organizations Within the Group October 7: Origination of Syndicated Green Loans October 11: Launch of “BankPay,” a Smartphone Payment Service October 11: [CCP] Investment
Slide 28: Management Indicators, etc. for The Chugoku Bank
Management Indicators, etc. for The Chugoku Bank
Slide 29: Profit and Loss Statement (1)
Profit and Loss Statement (1) [Parent] FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (million yen) 1H 1H 1H 1H 1H Ordinary revenue 57,415 113,461 56,143 110,829 49,824 99,765 51,869 110,337 82,338 164,467 Banking revenue 53,545 104,638 51,457 100,630 46,415 90,108 47,999 98,5
Slide 30: Profit and Loss Statement (2)
Profit and Loss Statement (2) [Parent] FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (million yen) 1H 1H 1H 1H 1H Bond related gains/losses -316 1,117 1,084 -524 822 -552 -447 -2,949 -15,362 -19,778 Gain on bond sales, including JGBs 2,679 4,865 1,727 3,026 1,407 2,496 3,506
Slide 31: Ordinary Revenue Breakdown
Ordinary Revenue Breakdown [Parent] FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (million yen) 1H 1H 1H 1H 1H Ordinary revenue 57,415 113,461 56,143 110,829 49,824 99,765 51,869 110,337 82,338 164,467 Banking revenue 53,545 104,638 51,457 100,630 46,415 90,108 47,999 98,558
Slide 32: Ordinary Expense Breakdown
Ordinary Expense Breakdown [Parent] FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (million yen) 1H 1H 1H 1H 1H Ordinary expenses 44,196 91,541 43,899 95,353 38,712 80,720 37,521 86,928 63,113 136,953 Banking expenses 41,870 83,680 39,680 82,776 35,161 70,881 34,342 78,252 59,
Slide 33: Expense Breakdown
Expense Breakdown [Parent] FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (million yen) 1H 1H 1H 1H 1H Expenses (1) 27,232 54,211 27,397 54,010 26,404 52,783 25,914 51,986 25,330 51,316 Personnel 13,953 27,834 14,164 28,204 13,794 27,725 14,022 28,037 14,103 27,843 Salaries 7,
Slide 34: Major Yields
Major Yields FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (%) 1H 1H 1H 1H 1H 1. Interest-earning asset yield 1.05 1.03 1.02 0.98 0.84 0.79 0.77 0.72 0.93 1.01 Loan yield 1.08 1.08 1.06 1.04 0.92 0.90 0.87 0.87 1.00 1.11 Securities yield 1.23 1.17 1.20 1.10 0.91 0.81 0.89 0.8
Slide 35: Major Accounts (year-end balance) Assets
Major Accounts (year-end balance) Assets FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Total assets 83,679 82,257 83,579 81,136 87,417 91,226 98,542 101,779 96,609 98,034 Interest-earning assets 75,871 73,224 75,272 73,911 77,520 79,586 81,136
Slide 36: Major Accounts (year-end balance) Liabilities & Net Assets
Major Accounts (year-end balance) Liabilities & Net Assets FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Total liabilities and net assets 83,679 82,257 83,579 81,136 87,417 91,226 98,542 101,779 96,609 98,034 Total liabilities 78,350 77,021 78
Slide 37: Major Accounts (average balance) Assets
Major Accounts (average balance) Assets FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Total assets 81,574 81,554 81,738 82,160 85,635 87,544 93,337 96,396 100,207 98,905 Interest-earning assets 77,507 77,484 77,602 78,167 81,284 82,863 87,143
Slide 38: Major Accounts (average balance) Liabilities & Net Assets
Major Accounts (average balance) Liabilities & Net Assets FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Total liabilities and net assets 81,574 81,554 81,738 82,160 85,635 87,544 93,337 96,396 100,207 98,905 Total liabilities 77,306 77,236 77,
Slide 39: Deposits (year-end balance)
Deposits (year-end balance) FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Okayama 48,864 50,953 49,712 51,863 54,855 57,260 57,259 59,388 59,035 61,020 Private portion 37,072 37,347 37,610 38,327 39,941 41,081 42,033 42,945 43,450 43,748 Corpo
Slide 40: Deposits (average balance)
Deposits (average balance) FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Okayama 48,589 48,754 50,008 50,166 54,031 54,653 57,468 57,668 59,824 59,671 Private portion 36,755 37,054 37,681 37,915 39,457 40,033 41,761 42,193 43,362 43,566 Corpor
Slide 41: Loans (year-end balance)
Loans (year-end balance) FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H General capital 42,098 42,982 42,811 44,087 45,659 46,663 46,792 48,087 49,577 51,155 Large-scale companies 7,778 7,754 7,411 7,659 8,149 8,344 8,053 8,519 8,731 9,541 Medi
Slide 42: Loans (average balance)
Loans (average balance) FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H General capital 41,680 42,194 42,744 43,113 44,954 45,610 46,735 46,992 48,622 49,411 Local development 20,043 20,381 20,819 21,008 21,922 22,240 22,289 22,243 22,287 22,686
Slide 43: Loans by Industry (year-end balance)
Loans by Industry (year-end balance) FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Domestic branches 47,061 47,864 47,616 48,845 50,358 51,221 51,343 52,446 53,876 55,293 Manufacturing 6,655 6,757 6,443 6,731 7,034 7,124 6,728 6,981 6,836 7,52
Slide 44: Loans by Industry (percentage)
Loans by Industry (percentage) FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 1H 1H 1H 1H 1H Domestic branches 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Manufacturing 14.1% 14.1% 13.5% 13.8% 14.0% 13.9% 13.1% 13.3% 12.7% 13.6% Agriculture, forestry
Slide 45: Share of Total Deposits
Share of Total Deposits [Year-end balance] FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (%) 1H 1H 1H 1H 1H Okayama Chugoku Bank 48.9 49.4 49.2 49.8 49.8 50.3 50.4 51.1 51.2 51.7 Other than Chugoku Bank 51.1 50.6 50.8 50.2 50.2 49.7 49.6 48.9 48.8 48.3 Local banks other than
Slide 46: Share of Total Loans
Share of Total Loans [Year-end balance] FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (%) 1H 1H 1H 1H 1H Okayama Chugoku Bank 43.1 43.0 42.6 42.8 42.8 42.9 43.2 43.4 43.6 43.3 Other than Chugoku Bank 56.9 57.0 57.4 57.2 57.2 57.1 56.8 56.6 56.4 56.7 Local banks other than Chu
Slide 47: Securities
Securities Balance by type FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (100 million yen) 1H 1H 1H 1H 1H Year-end balance 25,074 23,949 24,587 23,451 23,913 26,225 25,653 25,098 25,154 23,192 JGBs 7,649 6,502 6,091 6,534 6,827 7,565 6,762 6,942 7,154 5,644 Local bonds 7,259
Slide 48: Balance/Duration by Remaining Number of Years to Maturity for Securities
Balance/Duration by Remaining Number of Years to Maturity for Securities Outstanding balance based on the remaining number of years to maturity for securities 10,000 (100 million yen) FY2018 9,000 FY2019 FY2020 8,000 FY2021 FY2022 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Less than 1 year More tha
Slide 49: Housing Loans
Housing Loans Loans executed by interest type (new homes + refinancing) Breakdown of use of loans executed 140 (%) (100 million yen) Long-term fixed rate Refinancing 10-year fixed rate 4.7 5-year fixed rate 120 3-year fixed rate Floating New homes 95.3 100 Total for period from Apr. 2022 to Mar. 202
Slide 50: Non-Performing Loans
Non-Performing Loans Loans based on the Financial Reconstruction Act FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 (million yen) 1H 1H 1H 1H 1H Bankrupt and quasi-bankrupt loans 18,809 21,308 21,512 21,851 19,661 22,058 19,678 20,918 20,376 19,060 (after partial direct write-
Slide 51: Debtor Classification Transition in 1H
Debtor Classification Transition in 1H (Upper level: Forecast Lower level: Value (100 million yen)) Favorable FY2022 Deterioration turnaround Other Virtually Legally Healthy Substandard Bankrupt Other doubtful bankrupt bankrupt loans loans clients (see note) loans loans loans Healthy loans 154,496 1
Slide 52: Debtor Classification Transition in 1H (comparison)
Debtor Classification Transition in 1H (comparison) (Upper level: Forecast Lower level: Value) Favorable FY2022 Deterioration turnaround Other Virtually Legally Healthy Substandard Bankrupt Other doubtful bankrupt bankrupt loans loans clients (see note) loans loans loans Healthy 100% 91.26% 0.47% 0.
Slide 53: Debtor Classification Transition 1year
Debtor Classification Transition 1year (Upper level: Forecast Lower level: Value (100 million yen)) Favorable FY2022 Deterioration turnaround Other Virtually Legally Healthy Substandard Bankrupt Other doubtful bankrupt bankrupt loans loans clients (see note) loans loans loans Healthy loans 153,618 1
Slide 54: Debtor Classification Transition 1year (comparison)
Debtor Classification Transition 1year(comparison) (Upper level: Forecast Lower level: Value) Favorable FY2022 Deterioration turnaround Other Virtually Legally Healthy Substandard Bankrupt Other doubtful bankrupt bankrupt loans loans clients (see note) loans loans loans Healthy 100% 86.85% 0.87% 0.0
Slide 55: For inquiries regarding this document, please contact
For inquiries regarding this document, please contact: Management Planning Department, Chugin Financial Group, Inc. (Shimizu or Matsuo) TEL: +81-86-234-6519 Email: souki01@chugin.jp
Chugin Financial Group — FY2022 Earnings Presentation on 6ix