Hyakugo Bank, Ltd. · TSE:8368
Hyakugo Bank — The Hyakugo Bank — H1 FY2024 Earnings Presentation
47 slides from Hyakugo Bank's earnings presentation, Nov 29, 2024
Slide 1: Presentation for FY2024 Interim Financial Results
The Hyakugo Bank, Ltd. TSE Prime, NSE Premier (8368) Information meeting Presentation for FY2024 Interim Financial Results November 29, 2024
Slide 2: Table of Contents
Table of Contents Outline of Financial Position P.4 State of Progress of Medium-term Management Plan P.16 Initiatives to Improve Corporate Value P.32 Appendix P.36 2
Slide 3: Summary
Summary FY2024 interim results, and FY 3/2025 financial and dividend forecasts FY2024 interim results - Both ordinary income and interim net income increased year-on-year FY 3/2025 forecasts - In light of the expected increase in interest income, the Bank revised its consolidated and non-consoli
Slide 4: Outline of Financial Position
Outline of Financial Position 4
Slide 5: Summary of Financial Results
Outline of Financial Position Summary of Financial Results Interim net income increased 11.5% year-on-year due to an increase in interest income and other operating income YoY (100 million yen) (Million yen) FY 9/23 FY 9/24 change FY 9/23 FY 9/24 YoY change Gross operating income (1) 28,070 31,897 3
Slide 6: Interest income
Outline of Financial Position Interest income An increase in interest on loans and securities contributes to higher interest income of 4.1% year-on-year YoY Factors underlying changes in interest income (Million yen) (Million yen) FY 9/23 FY 9/24 change (Head office and all branches) Interest income
Slide 7: Fees and commissions
Outline of Financial Position Fees and commissions Fees and commissions decreased 5.1% year-on-year, mainly due to a decrease in housing-loan-related fees (Million yen) Fees and commissions graph (non-consolidated) (Million yen) YoY FY 9/23 FY 9/24 Corporate solutions Depository assets-related chang
Slide 8: Expenses
Outline of Financial Position Expenses Expenses grew 1.6% year-on-year due to increases in non-personnel expenses (Million yen) Expenses and core OHR YoY (Million yen) Taxes Non-personnel expenses Personnel expenses FY 9/23 FY 9/24 change OHR (core gross operating profit basis) Expenses 19,613 19,92
Slide 9: Credit Costs (non-performing loans ratio)
Outline of Financial Position Credit Costs (non-performing loans ratio) Increase in the provision of specific allowance for loan losses caused a year-on-year increase in credit costs (Million yen) Credit costs (non-consolidated) (Million yen) YoY FY 9/23 FY 9/24 Other Provision of specific allowance
Slide 10: Deposits (including negotiable certificates of deposit)
Outline of Financial Position Deposits (including negotiable certificates of deposit) Corporate and other deposits remained strong, with total deposits up 3.0% year-on-year (100 million yen) YoY Total deposits (average balance) (100 million yen) FY 3/24 FY 9/24 change 62,037 Tokyo, Osaka Total depos
Slide 11: Loans
Outline of Financial Position Loans Loans grew 4.5% year-on-year, mainly due to an increase in loans to individuals, such as housing loans (100 million yen) YoY Total loans (average balance) (100 million yen) FY 3/24 FY 9/24 change Tokyo, Osaka Aichi Prefecture Mie Prefecture up 79.82% Total loans R
Slide 12: Securities Investments
Outline of Financial Position Securities Investments Valuation gains (losses) on securities decreased, mainly in stocks (100 million yen) end of 3/24 end of 9/24 Year-on-year Securities balance Government bonds Municipal bonds Corporate bonds Stocks Securities balance 15,621 15,198 (423) (100 millio
Slide 13: Equity ratio
Outline of Financial Position Equity ratio Equity ratio rose 0.05 points from the end of the previous fiscal year due to an increase in equity capital resulting from profit recognition, etc. Equity capital, shareholders’ equity, and equity ratio (100 million yen) (100 million yen) Equity capital Sha
Slide 14: FY 3/2025 Forecasts (published figures)
Outline of Financial Position FY 3/2025 Forecasts (published figures) Financial results are expected to exceed FY2022 levels on both a consolidated and non-consolidated basis, with record profits Forecast (non-consolidated) (Million yen) FY 3/25 FY 3/25 Forecast (consolidated) (Million yen) (initial
Slide 15: Dividends
Outline of Financial Position Dividends Dividends are planned to be increased by 2 yen from the initial forecast and 3 yen from the previous term’s results In light of the performance in 1H, we have decided to increase the interim dividend for FY 3/25 by 1 yen compared with the initial forecast. We
Slide 16: Medium-term Management Plan State of Progress
Medium-term Management Plan KAI-KAKU 150 2nd STAGE “Gateway to the Future II” Aiming to Transform into a Green & Consulting Bank Group State of Progress 16
Slide 17: Current Status of Medium-term Management Plan in Long-term Vision
Gateway to the Current Status of Medium-term Management Plan in Future II Long-term Vision Take on the challenge to reach the final stage in order to realize the Bank’s long-term vision of “Aiming to Transform into a Green & Consulting Bank Group” 140th KAI-KAKU 2nd KAI-KAKU FINAL KAI-KAKU 1st STAGE
Slide 18: Overall Picture of the Medium-term Management Plan
Gateway to the Future II Overall Picture of the Medium-term Management Plan Medium-term Management Plan KAI-KAKU 150 2nd STAGE “Gateway to the Future II” consists of five basic policies and 11 key strategies Five Basic Policies 11 Key Strategies I Strengthening Efforts Towards Carbon 1 Carbon Neutra
Slide 19: State of Progress of Numerical Targets of Medium-Term Management Plan
Gateway to the State of Progress of Numerical Targets of Medium- Future II Term Management Plan Some KPI targets were revised due to changes in the external environment, but KGI targets are expected to be achieved in general Targets in FY 3/25 Results in FY 3/24 Results in FY 9/24 (Final targets of
Slide 20: Status of Progress of Key Strategies (Housing Loans)
Gateway to the Future II Status of Progress of Key Strategies (Housing Loans) Ranked No. 1 in the nation for 6 consecutive years in terms of housing loan growth through Results efficient sales activities and human resource development through improving its bases Housing loans offered in a single yea
Slide 21: Status of Progress of Key Strategies (Housing Loans)
Gateway to the Future II Status of Progress of Key Strategies (Housing Loans) Issues and Focus on improving profitability by improving efficiency through digital transformation, in future measures anticipation of a future decline in housing loan demand Changes in the external environment The Bank
Slide 22: Status of Progress of Key Strategies (Depository Assets)
Gateway to the Status of Progress of Key Strategies (Depository Future II Assets) Achieved an effective sales structure by consolidating its sales branches for depository assets Results and strengthening cooperation with bank and securities companies Strengthening the sales structure for Commissions
Slide 23: Status of Progress of Key Strategies (Depository Assets)
Gateway to the Status of Progress of Key Strategies (Depository Future II Assets) Future Optimize the Group’s depository asset structure and streamline its operations through DX measures while strengthening customer-oriented business operations Advance “customer-oriented depository asset management
Slide 24: Status of Progress of Major Key Strategies (Corporate Consulting)
Gateway to the Status of Progress of Major Key Strategies Future II (Corporate Consulting) Has provided support for decarbonization and overseas expansion of regional businesses, Results and proposed solutions to new business challenges Support for decarbonization Support for overseas expansion Ac
Slide 25: Corporate solution commissions grew to the target level
Gateway to the Status of Progress of Major Key Strategies Future II (Corporate Consulting) Has sophisticated further the business feasibility assessments, causing corporate solution Results fees to grow to the target level set in the Medium-term Management Plan Corporate solutions fees Renewed busin
Slide 26: Status of Progress of Major Key Strategies (Corporate Consulting)
Gateway to the Status of Progress of Major Key Strategies Future II (Corporate Consulting) Issues and future Invest in human capital and DX in response to changes in the external environment so as to measures solidify the foundation of the corporate consulting business Changes in the external enviro
Slide 27: Status of Progress of Major Priority Strategies (Channel Strategy)
Gateway to the Status of Progress of Major Priority Strategies Future II (Channel Strategy) Achieved Medium-term Management Plan target of 300,000 accounts for smartphone banking. Results New branches converted to a consulting venue Strengthened consulting activities at Smartphone banking new branch
Slide 28: Human Resource Strategy and Diversity Strategy
Gateway to the Status of Progress of Major Priority Strategies Future II (Human Resource Strategy and Diversity Strategy) Steady increase in professional qualification holders, but further measures are needed to increase the ratio of women in executive and managerial positions Progress in human capi
Slide 29: Status of Progress of Major Priority Strategies (Governance Strategy)
Gateway to the Status of Progress of Major Priority Strategies Future II (Governance Strategy) Strengthen corporate governance to ensure the Bank’s sustainable growth and enhance its corporate value over the medium to long term Appointment and diversification of outside officers Ratio of outside o
Slide 30: Status of Progress of Major Priority Strategies (Carbon Neutral Strategy)
Gateway to the Status of Progress of Major Priority Strategies Future II (Carbon Neutral Strategy) Greenhouse gas (GHG) emissions are steadily declining. Information disclosure based on the TCFD concept is also implemented Greenhouse gas (GHG) emissions Scenario analysis and carbon-related assets Ch
Slide 31: Status of Progress of Major Priority Strategies (SDGs/ESG Strategy)
Gateway to the Status of Progress of Major Priority Strategies Future II (SDGs/ESG Strategy) Launched a project to revitalize the SDGs initiatives of companies in Mie Prefecture “We see it! A Good Future -- MIE SDGs ACTION” launched 1 Produce a 15-second video about Mie Prefecture companies’ initiat
Slide 32: Initiatives to Improve Corporate Value
Initiatives to Improve Corporate Value 32
Slide 33: Initiatives to Improve P/B Ratio
Higher corporate value Initiatives to Improve Corporate Value Continue its efforts to improve P/B ratio, with a focus on securing a high RORA, and take on the challenge of implementing specific measures for the next Medium-term Management Plan Initiatives to improve P/B ratio Enhanced interest and H
Slide 34: Shareholder Returns
Higher corporate value Shareholder Returns Increase shareholder returns more than ever toward the next Medium-term Management Plan, while maintaining its basic policy of long-term, stable dividends Approach to shareholder returns Long-term, stable dividends The Bank returns profits to shareholders b
Slide 35: Status of Cross-shareholdings
Higher corporate value Status of Cross-shareholdings Review cross-shareholdings from the viewpoint of significance of holding and economic rationality Policy for reducing cross-shareholdings Accelerate the use of proceeds from the sale of Changes in number of cross-shareholdings (listed) cross-share
Slide 36: Appendix
Appendix QaaRs 36
Slide 37: Impact of Rising Yen Interest Rates
Appendix Impact of Rising Yen Interest Rates In the short term, deposit funding costs will increase first, but in the long term, interest income is expected to increase due to rising interest rates on loans Yen balance sheet Impact of a 0.50% increase in yen interest rates on (Bank’s non-consolidate
Slide 38: Deposits and Loans
Appendix Deposits and Loans Deposits (ending balance) (Million yen) Loans (ending balance) (Million yen) end of end of end of end of end of end of end of end of end of end of 3/21 3/22 3/23 3/24 9/24 3/21 3/22 3/23 3/24 9/24 Corporate Corporate sector deposits 1,140,057 1,148,376 1,172,626 1,269,046
Slide 39: Deposits, Depository Assets
Appendix Deposits (including negotiable certificates of deposit), Depository Assets Hyakugo Securities (after excluding the Bank’s brokerage) Total deposits Mie Prefecture Aichi Prefecture Tokyo, Osaka Depository assets, Insurance Financial instrument brokerage Investment trusts (average balance) am
Slide 40: Loans
Appendix Loans Mie Aichi Tokyo, Total loans Prefecture Prefecture Osaka (average balance) (100 million yen) 49,482 Mie Aichi Tokyo, 47,333 Loans to SMEs Prefecture Prefecture Osaka 43,785 8,579 (average balance) 15,689 40,999 (100 million yen) 15,375 8,322 38,240 7,865 14,564 2,208 2,391 13,834 7,61
Slide 41: Integrated Risk Management
Appendix Integrated Risk Management Risk is kept within an appropriate range according to the Bank’s operating capabilities based on integrated risk management. Compared with core capital of 272.1 billion yen and allocable capital of 183.4 billion yen, actual amount of risk is 83.3 billion yen. (100
Slide 42: Outstanding Non-performing Loans by Disclosure Standard and Coverage
Appendix Outstanding Non-performing Loans by Disclosure Standard and Coverage Loans disclosed under the Financial Reconstruction Act and risk-managed claims (target: total credit exposure) Non-performing Loans under Internal Assessment Standard (target: total credit exposure) * Special attention loa
Slide 43: Trends of Debtor Classification
Appendix Trends of Debtor Classification Upper: Number of debtors / Lower: Credit exposure (Million yen) Debtor Classification as of September 30, 2024 Ratio of downgradi ng to Other under possible Upgrade Downgrade Under Possible Substantial Normal close Failure Other failure or control failure fai
Slide 44: Hyakugo Bank's Credit Policies
Appendix Hyakugo Bank’s Credit Policies Compliance of Hyakugo Credit Policy (September 30, 2024) (100 million yen) Classification Content Limit Compliance Loans for individuals engaging in 7% or less of total loans 3,470 1,981 4.00% housing leasing business Loans for other real estate industry 7% or
Slide 45: Mie Prefecture's Shares of Deposits and Loans
Appendix Mie Prefecture’s Shares of Deposits and Loans Deposits Loans Including megabanks Megabank Other Shinkin Bank A Hyakugo Bank Hyakugo Bank Bank A Shinkin Other Megabank Mie 9.1 9.1 11.2 24.6 46.0 Prefecture 40.1 28.2 11.0 16.1 4.6 * Excludes Agricultural Cooperative, Fisheries Cooperative, JP
Slide 46: Group Companies
Appendix Group Companies Enhancing the comprehensive strength of the entire Group Can provide integrated financial services. Think tank services Group companies work together for higher service Services for individual efficiency, while striving to secure further profits customers outside the Group.
Slide 47: Inquiries
Please direct inquiries concerning this document to: Corporate Planning Division, The Hyakugo Bank, Ltd. Watanabe / Bessho at Public Relations SDGs Promotion Office ir@hyakugo.co.jp https://www.hyakugo.co.jp/ The information concerning entities other than the Bank contained in this document has been