Tochigi Bank, Ltd. · TSE:8550
Tochigi Bank — The Tochigi Bank — FY2025 Earnings Presentation
49 slides from Tochigi Bank's earnings presentation, May 27, 2026
Slide 1: Financial Results Presentation for the Fiscal Year Ended March 31, 2026
Financial Results Presentation for the Fiscal Year Ended March 31, 2026 (May 27, 2026) Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevai
Slide 2: Contents
Contents Overview of Financial Results for the The 12th Medium-term Management Plan Efforts to Enhance Corporate Value Fiscal Year Ended March 31, 2026 12th MTMP Increase of P/B ratio P.42 Overview of Financial Results P.3 Overall Image P.19 Current Status of the Bank P.43 Net Interest Income, Fees
Slide 3: Overview of Financial Results for the Fiscal Year Ended March 31, 2026
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 2
Slide 4: Overview of Financial Results
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Overview of Financial Results (Billion yen) Non-consolidated 2025/3 2026/3 Change % Change Main Points on Non-consolidated Financial Results Gross operating profit (1.3) 31.7 33.1 – The securities portfolio has improved due to si
Slide 5: Net Interest Income, Fees and Commissions Income, and Core Net Business Profit
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Net Interest Income, Fees and Commissions Income, and Core Net Business Profit Reasons for Changes in Net Interest Income (Excluding Gains (Losses) from Cancellation of Investment Trusts) Fees and Commissions Income (Billion yen)
Slide 6: Trends in Yields
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Trends in Yields Trends in Yields on Loans/Discounts, Deposits, and Securities Trends in Yields on Loans by Sector For large enterprises For SMEs Secured loans Unsecured loans and others Loans/ Securities Deposits Discounts (excl
Slide 7: Balance of Deposits and Loans and Bills Discounted
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Balance of Deposits and Loans and Bills Discounted Trends in Balance of Deposits Trends in Balance of Loans and Bills Discounted (Billion yen) Note: ( ) indicates the percentage of total deposits. (Billion yen) Note: ( ) indicate
Slide 8: Securities
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Securities Valuation Gains and Losses on Securities Balance of Securities (Billion yen) (Billion yen) 2024/3 2025/3 2026/3 Change from % Change 2025/3 from 2025/3 Equities Bonds Others (foreign bonds, investment trusts, etc.) Tot
Slide 9: Equity Capital and Expenses
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Equity Capital and Expenses Trends in Equity Capital and Capital Adequacy Ratio Trends in Expenses and Overhead Ratio (OHR) (Billion yen) (Billion yen) Consolidated equity capital 24.0 22.1 21.3 21.4 Consolidated capital adequacy
Slide 10: Loans Based on the Banking Act and Financial Reconstruction Act
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Loans Based on the Banking Act and Financial Reconstruction Act Loans Based on the Banking Act and Financial Reconstruction Act Cost of Credit and Credit Cost Ratio (Billion yen) (Billion yen) 2.24% 7 0.17 % 2.12% 80 2.10% 2.05%
Slide 11: Financial Results Forecast
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Financial Results Forecast (Billion yen) Non-consolidated 2026/3 2027/3 Change % Change Main Points of Non-consolidated Forecast Gross operating profit 31.7 35.1 3.4 10.7% Although we expect an increase in interest on deposits an
Slide 12: Dividends and Shareholder Returns Policy
Overview of Financial Results for the Fiscal Year Ended March 31, 2026 Dividends and Shareholder Returns Policy Dividends Shareholder returns policy Interim dividend Year-end dividend Payout ratio Until the fiscal year ended March 31, 2026 Targeting a total return ratio of 30% to 35% yen Recorded a
Slide 13: Review of the 11th Medium-term Management Plan
Review of the 11th Medium-term Management Plan
Slide 14: Past Initiatives and Future Management Policy
Review of the 11th Medium-term Management Plan Past Initiatives and Future Management Policy As we entered a world with interest rates, we sold securities that had been carrying substantial unrealized losses and accelerated improvements in the portfolio, resulting in significant improvements in our
Slide 15: Review of the 11th MTMP Management Targets
Review of the 11th Medium-term Management Plan Review of the 11th MTMP Management Targets 2023/3 11th Medium-term Management Plan (Results) *At the start of the Final Year 2026/3 Evaluation Medium -term Target (Results) Managem ent Plan Core net business profit (non-consolidated) ¥8.5 billion or (ex
Slide 16: Review of the 11th MTMP Growth Investment and Strategic Personnel Assignment
Review of the 11th Medium-term Management Plan Review of the 11th MTMP Growth Investment and Strategic Personnel Assignment Growth Investment Strategic Personnel Assignment Invest ¥8.0 billion or more in total (for 3 years) Reassign 150 personnel in total (for 3 years) Investment results (2024/3 to
Slide 17: Review of the 11th MTMP KPIs
Review of the 11th Medium-term Management Plan Review of the 11th MTMP KPIs Basic strategy 1: Strengthening profitability—Evolution (deepening) of regional financial business and reinforcement of earnings structure— Number of cases of consulting and amount of Balance of investment trusts and number
Slide 18: Review of the 11th MTMP KPIs
Review of the 11th Medium-term Management Plan Review of the 11th MTMP KPIs Basic Strategy 2: Strengthening the system Branch office network Introducing the area head office system Strengthening the non-face-to-face channel Target Plan Result Achievement Plan Result vs. Plan Divide business areas in
Slide 19: The 12th Medium-term Management Plan
The 12th Medium-term Management Plan
Slide 20: 12th MTMP Overall Image
The 12th Medium-term Management Plan 12th MTMP Overall Image Pursuing the theme of “evolve the provision of new value” under the 12th Medium-term Management Plan, the Tochigi Bank Group will implement three basic strategies. Through Basic Strategy (1), deepening existing businesses centered on depos
Slide 21: 12th MTMP Overview and Management Targets
The 12th Medium-term Management Plan 12th MTMP Overview and Management Targets Long-term Vision: A corporate group that co-creates the future of regional communities through “relationships” and “solutions” 11th Medium-term Management Plan 12th Medium-term Management Plan 13th Medium-term Management
Slide 22: Strengthening and Demonstrating Regional Financial Capabilities
The 12th Medium-term Management Plan 12th MTMP Strengthening and Demonstrating Regional Financial Capabilities By implementing three basic strategies, the Tochigi Bank Group will demonstrate its “true value” as a regional financial institution through its “regional financial capabilities” and contri
Slide 23: 12th MTMP Growth Investment
The 12th Medium-term Management Plan 12th MTMP Growth Investment AI/DX and System Investments Human Capital Investments Branch Office Investments Investment Amount: ¥9.0 Billion Investment Amount: ¥3.0 Billion Investment Amount: ¥12.0 Billion ➢ Improve customer convenience through ➢ Invest in the de
Slide 24: 12th MTMP Capital Strategy
The 12th Medium-term Management Plan 12th MTMP Capital Strategy ➢ Capital Allocation Capital adequacy ratio Risk assets Operational risk, etc. Increase in risk Securities ¥7.0 billion assets ¥23.0 billion Around 0.8% (including equity Risk asset Loans investments and the ¥1,600 Shareholder ¥20.0 imp
Slide 25: 12th MTMP Numerical Targets and KPIs
The 12th Medium-term Management Plan 12th MTMP Numerical Targets and KPIs Numerical Targets FY2026/3 (Result) FY2030/3 (Plan) Numerical Target Items 3-year Plan Period 4-year Plan Period Balance of deposits ¥3,170.0 billion ¥3,260.0 billion (+2.8%) Balance of loans ¥2,450.0 billion ¥2,550.0 billion
Slide 26: Basic Strategy (1) Deepening Existing Businesses
Basic Strategy (1) Deepening Existing Businesses
Slide 27: Deepening Existing Businesses Corporate Customer Strategy
Basic Strategy (1) Deepening Existing Businesses Deepening Existing Businesses Corporate Customer Strategy We will contribute to the sustainable development of the regional economy by providing tailored support to address the specific challenges faced by individual companies according to their life
Slide 28: Deepening Existing Businesses Corporate Customer Strategy
Basic Strategy (1) Deepening Existing Businesses Deepening Existing Businesses Corporate Customer Strategy ■Support tailored to area characteristics ・ Industrial structures, demographic trends, GDP and economic scale, competitive environments, interest rate levels, and our market positioning differ
Slide 29: Deepening Existing Businesses Corporate Customer Strategy
Basic Strategy (1) Deepening Existing Businesses Deepening Existing Businesses Corporate Customer Strategy Our primary business area Loan share Loan balance Municipal Tochigi Promote loans to SMEs in Tochigi Increase Municipal governments governments Prefecture Prefecture centered on Utsunomiya ¥60.
Slide 30: Expanding and Deepening SME Loans Based on Business Loans
Basic Strategy (1) Deepening Existing Businesses Deepening Existing Businesses Expanding and Deepening SME Loans Based on Business Loans To expand loans to SMEs, we will promote business loans through (i) enhancing the knowledge and skills of each employee, (ii) establishing an integrated support fr
Slide 31: Individual Customer Strategy
Basic Strategy (1) Deepening Existing Businesses Deepening Existing Businesses Individual Customer Strategy Provide services to customers through diverse channels Indirect Face-to-Face channel ◼ By effectively linking each channel (non-face-to-face, indirect face-to-face, and direct face-to-face), w
Slide 32: Customer Lifetime Value (LTV)
Basic Strategy (1) Deepening Existing Businesses Deepening Existing Businesses Individual Customer Strategy Business Model Transformation Maximize LTV ・ We will strive to maintain and expand medium- to Enhance customer Customer Lifetime Value (LTV) retention Ongoing long-term business relationships
Slide 33: Securities Strategy and Net Interest Income
Basic Strategy (1) Deepening Existing Businesses Deepening Existing Businesses Securities Strategy and Net Interest Income Securities Strategy Net Interest Income ・ In securities investments, we will prioritize safety by focusing primarily on short-term Japanese government bonds in a rising interest
Slide 34: Basic Strategy (2) Expanding New Business Areas
【基本戦略②】 Basic Strategy 新事業領域の拡大 (2) Expanding New Business Areas
Slide 35: M&A and Business Succession / Equity Strategy
Basic Strategy (2) Expanding New Business Areas Expanding New Business Areas M&A and Business Succession / Equity Strategy M&A and Business Succession Strategy ・ By addressing business succession needs through company-specific support while taking a broader view of strengthening and restructuring re
Slide 36: Regional Revitalization through Group Companies and Diverse Alliances
Basic Strategy (2) Expanding New Business Areas Expanding New Business Areas Regional Revitalization Enhancing Regional Sustainability through Group Companies and Diverse Alliances ・ We will promote regional revitalization from three perspectives: environmental initiatives such as GX and decarboniza
Slide 37: Basic Strategy (3) Reinforcing the Organizational Basis Supporting Evolution
Basic Strategy (3) Reinforcing the Organizational Basis 【基本戦略②】新事業領域の拡大 Supporting Evolution
Slide 38: Maximizing the Value of Human Capital: Enhancing Engagement
Basic Strategy (3) Reinforcing the Organizational Basis Supporting Evolution Reinforcing the Organizational Basis Supporting Evolution Maximizing the Value of Human Capital We believe that when each employee engages closely with local communities and customers and “thinks independently and takes on
Slide 39: Maximizing the Value of Human Capital
Basic Strategy (3) Reinforcing the Organizational Basis Supporting Evolution Reinforcing the Organizational Basis Supporting Evolution Maximizing the Value of Human Capital Developing and Acquiring Talent to Create and Personnel Allocation Aligned with the Management Plan Deliver New Value Through t
Slide 40: Promotion of AI/generative AI and DX
Basic Strategy (3) Reinforcing the Organizational Basis Supporting Evolution Reinforcing the Organizational Basis Supporting Evolution Enhancing Services and Further Improving the Efficiency and Sophistication of Operations through DX/AI ・ We will promote the use of AI and generative AI in collabora
Slide 41: Enhancing Risk Management and Risk Governance Frameworks
Basic Strategy (3) Reinforcing the Organizational Basis Supporting Evolution Reinforcing the Organizational Basis Supporting Evolution Enhancing Risk Management and Risk Governance Frameworks As the breadth and depth of banking operations continue to expand, the risks to which banks are exposed are
Slide 42: Efforts to Enhance Corporate Value
Efforts to Enhance Corporate Value
Slide 43: Increase of PBR
Efforts to Enhance Corporate Value Increase of PBR ROE is currently below the capital cost, and P/B ratio remains below 1x. We aim to achieve ROE that exceeds the shareholders’ equity cost to increase P/B ratio (*) The Bank’s cost of shareholders’ equity is recognized to be around 8 to 10% (taking i
Slide 44: Current Status of the Bank
Efforts to Enhance Corporate Value Current Status of the Bank Core net business profit and the total interest margin increased only modestly. In addition, the deposit and loan margin declined. Core Net Business Profit (Excluding Gains or Losses from Total interest margin Deposit and loan margin Canc
Slide 45: Targets for Management Indicators etc., toward ROE of 7%
Efforts to Enhance Corporate Value Targets for Management Indicators etc., toward ROE of 7% Equation for Decomposition of ROE Profit Profit Financial Risk assets ROE = RORA × Equity capital Risk assets leverage Equity capital RORA ≈ [Gross operating profit RORA] Expenses Gross operating profit (excl
Slide 46: Topics
Topics
Slide 47: Launch of Business Collaboration with ABEJA, Inc. in the DX and AI Fields
Topics Launch of Business Collaboration with ABEJA, Inc. in the DX and AI Fields We have launched a business collaboration with ABEJA, Inc. in the DX and AI fields and will promote strategies and initiatives aligned with the 12th Medium-term Management Plan. Through this collaboration, we will furth
Slide 48: Opening of the New Head Office Confirmed
Topics Opening of the New Head Office Confirmed Following the launch of the basic concept in fiscal 2022, we have decided on the opening of our new head office, which has been under construction during the period of the 11th Medium-term Management Plan. Construction Progress: As of March 31, 2026 Au
Slide 49: Transcribing, copying, or distributing this material to third parties without prior written permission from
Transcribing, copying, or distributing this material to third parties without prior written permission from THE TOCHIGI BANK, LTD. is prohibited. This material is prepared for informational purposes only and is not intended as a solicitation to buy or sell any particular securities. All or part of t