Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2022 Earnings Presentation
45 slides from Bank Of The Ryukyus,limited's earnings presentation, November 2022
Slide 1: Financial Results for FY 2022 (Ended Sep. 2022)
Financial Results for FY 2022 (Ended Sep. 2022) Received the grand prize in the 31st (Fiscal 2022) Bingata Design Contest “Garden of the Sun” Kiwako Sakamoto
Slide 2: Contents
Contents 1 3 About Bank of the Ryukyus Financial Results for the Fiscal Year Ended Overview of Forward-looking Provisioning .... 31 Bank of the Ryukyus Overview September 30, 2022 (1/2) .... 4 Bank of the Ryukyus History Financial Summary (Consolidated) (1/2) .... 12 Overview of Forwar
Slide 3: About Bank of the Ryukyus
1 About Bank of the Ryukyus Received the grand prize in the 31st (Fiscal 2022) Bingata Design Contest “Garden of the Sun” Kiwako Sakamoto
Slide 4: Bank of the Ryukyus Overview
Bank of the Ryukyus Overview Company Profile Affiliated Companies Establishment May 1, 1948 Address 1-7-1 Kumoji, Naha, Okinawa Prefecture May 10, 1972 Establishment 346 million yen (100% stock ownership by Bank of the Ryukyus) Capital Leasing and installment-selling of information-related devices/e
Slide 5: Bank of the Ryukyus History
Bank of the Ryukyus History May 1948 Precursor organization established via the Military Government Ordinance No. 1 Bank of the Ryukyus was originally established on May 1, 1948 as a special banking organization via the Military Government Ordinance, and the The Bank changed from special public corp
Slide 6: Okinawa's Economy Amid the COVID-19 Crisis
2 Okinawa’s Economy Amid the COVID-19 Crisis Received the grand prize in the 31st (Fiscal 2022) Bingata Design Contest “Garden of the Sun” Kiwako Sakamoto
Slide 7: Tankan Survey
Tankan Survey Due to the resumption of socio-economic activities, the tourism industry has been rapidly recovering. Business Sentiment DI (Good/Bad) Economic Overview of Okinawa Prefecture Nationwide Okinawa 40 According to the Tankan’s business sentiment, the Prospects signs of improvement began
Slide 8: Tourism
Tourism The number of tourists coming to Okinawa and occupancy rates of major hotels are improving due to the Government’s efforts to stimulate tourism demand and the relaxation of border measures. (No. of Persons) Number of Tourists (%) Occupancy Rates for Major Okinawa Prefecture Hotels 79.3 800,0
Slide 9: Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies
Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies Increasing demand in tourism has led to an improving trend in increased job-openings-to-applicants ratios. The number of corporate bankruptcies has also been calm. Unemployment Rates No. of Corporate Bankruptcies and J
Slide 10: Public Construction Contract Amounts and Numbers of New Housing Construction Projects Started
Public Construction Contract Amounts and Numbers of New Housing Construction Projects Started New public construction contract amounts remained strong despite the spread of COVID-19. The number of new housing starts is weak, mainly due to the decrease in the number of rental housing and owner-occupi
Slide 11: Financial Results for the Fiscal Year Ended September 30, 2022
3 Financial Results for the Fiscal Year Ended September 30, 2022 Received the grand prize in the 31st (Fiscal 2022) Bingata Design Contest “Garden of the Sun” Kiwako Sakamoto
Slide 12: Financial Summary (Consolidated) (1/2)
Financial Summary (Consolidated) (1/2) Revenue and profit increased. Consolidated interim net income increased, due to profit increase for bank only. (100 million yen) FY 2022 (Ended Sep. 2022) FY 2021 Year on Year (Ended Sep. 2021) Ordinary revenue 292 3 288 Ordinary expenses 238 –2 240 Ordinary pr
Slide 13: Financial Summary (Consolidated) (2/2)
Financial Summary (Consolidated) (2/2) For each of the group of Bank of the Ryukyus, interim net income was secured to be in surplus. (100 million yen) Bank of the Ryukyu OCS Ryugin DC Ryugin Hosho Others Ryukyus Lease Ordinary revenue 203 77 9 8 3 –10 Ordinary profit 47 2 0 2 3 –2 Interim net incom
Slide 14: Financial Summary (Non-Consolidated)
Financial Summary (Non-Consolidated) Revenue and profit increased. Profit from service charge increased and expenses decreased. In addition, credit costs decreased due to the reversal of general provision for doubtful accounts. (100 million yen) FY 2022 (Ended Sep. 2022) FY 2021 (Ended Sep. 2021) Ye
Slide 15: Summary of Profit/Loss Trends
Summary of Profit/Loss Trends (Non-Consolidated: September 2018 to September 2022) (Million yen) Sep. 2018 Sep. 2019 Sep. 2020 Sep. 2021 Sep. 2022 Year on year Profit from customer services*1 1,353 1,706 1,617 2,409 2,655 +246 Deposit and loan balance*2 10,918 11,313 11,530 11,563 11,334 –229 Profit
Slide 16: Profit/Loss During the Fiscal Year Ended September 30, 2022
Profit/Loss During the Fiscal Year Ended September 30, 2022 Year-on-year profit increased due to decreased credit cost and increased profit from customer services. (100 million yen) Interim net income (Million yen) Factors Behind Year-on-year Increases 40 4,000 and Decreases 246 50 5 30 3,000 Increa
Slide 17: Profit from Customer Services
Profit from Customer Services Due to increased profit from service charge and reduced expenses etc., profit from customer services is trending upward. Service charges for corporate customer services and card business services helped bring service charge profit up. Profit from Customer Services Facto
Slide 18: Loans (1/2)
Loans (1/2) Interest on loans decreased due to sluggish demand for loans and lower interest rates on loans. Loan balance Loan Interest Rate Individual Corporate (excl. syndicated loans) Loan Interest Rate Local gov’ts, others (excl. syndicated loans) Syndicated loans (%) Loan interest rate (regional
Slide 19: Loans (2/2)
Loans (2/2) Housing loan balance is on uptrend. Personal, Rental, and Real Estate Loans decreased. (100 million yen) Syndicated Loans (%) (100 million yen) Rental and Real Estate Loans (%) 1500 Balance 0.75 6,500 Balance 2.0 Interest Rate (Right Axis) Breakdown of Loan Balances by Use 0.35 Interest
Slide 20: COVID-19 Crisis Financial Support
COVID-19 Crisis Financial Support The amounts of provided loans with changed credit conditions and issued new loans have leveled out after easing of economic activity restrictions. Trends of Provided Loan Amounts Trends of Provided Loan Amounts with Changed Credit made in response to the COVID-19 cr
Slide 21: Deposits
Deposits Deposit balances increased for both individuals and corporations. The main reasons are COVID-19- related financing support and the high retention of public funds. Interest on Deposits Balance of Deposits (100 million yen) Individual (100 million yen) (%) Commercial Public funds, etc. 10 Int
Slide 22: Profit from Service Charges
Profit from Service Charges Service charges for corporate customer services, card business services, and assets in custody service, etc., helped bring service charge profit up. Trends in Profit from Service Charges Factors Behind Year-on-year Increases (Excluding Group Credit Life Insurance Premiums
Slide 23: Assets in Custody
Assets in Custody By developing sales strengthening measures for assets in custody, sales revenue from investment trusts, single-premium life insurances increased. Assets in Custody Balance Assets on Custody Sales Revenues Investment trusts Single-premium life insurance Single-premium life insurance
Slide 24: Asset inheritance supports for individuals
Asset inheritance supports for individuals We have promoted asset inheritance supports for individuals from FY 2017. Since our efforts about the inheritance-related needs was widely spread and recognized, inheritance business fees increased. Transition of the fee income from How to support asset inh
Slide 25: Corporate Customer Services
Corporate Customer Services Fee income increased. The number of consultations on structured finance and M&A is on the rise due to the resumption of economic activity. Supported business owners who were trying to restructure their businesses by supporting the application for “business restructuring s
Slide 26: Card-related Business (1/2)
Card-related Business (1/2) As both numbers of Visa debit cards issued and card affiliates steadily increased due to the resumption of socio-economic activities, charges from card users and card affiliates increased. Total Numbers of Visa Debit Cards Issued Number of Card Merchants and Profit from S
Slide 27: Card-related Business (2/2)
Card-related Business (2/2) Numbers of new members grew for Visa debit cards with contactless payment functionality. Payment terminal functions are becoming increasingly sophisticated at card-affiliate locations as we accelerate efforts to sign up new affiliates. Ryugin Visa Debit Card Recent Main E
Slide 28: Securities (1/2)
Securities (1/2) To strategically build up the balance of securities with the aim of improving yields over the medium to long term, while holding down the lengthening of durations. Balance of securities Duration and yield of securities Government bonds Local government bonds Corporate bonds Stocks,
Slide 29: Securities (2/2)
Securities (2/2) Unrealized losses on foreign bonds increased due to the rise in US interest rates. Profit/loss in Trading Division Differences Between Market Values (100 million yen) (100 million yen) and Book Values of Securities Gains/losses from trading forex and trading account securities Balan
Slide 30: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt Introduction of forward-looking reserve provisions in FY 2020. Large reversal of allowance for doubtful accounts, due to improvements in economic indicators. Net Credit Costs Disclosed Bad Debt Substandard claims Doubtful claims (100 million yen) Loan amounts
Slide 31: Overview of Forward-looking Provisioning (1/2)
Overview of Forward-looking Provisioning (1/2) By switching to a more rational estimation method for future risk calculation that takes consideration of macroeconomic indicators, the occurrence probability for each scenario based on the current and future outlook of the business cycle, and assessmen
Slide 32: Overview of Forward-looking Provisioning (2/2)
Overview of Forward-looking Provisioning (2/2) Restart of principal payment from a part of business operators, mainly from the real estate industry. The amount of provisions for bad debt reserve decreased as credit ratings improved, etc. Overall Real estate (100 million yen) (100 million yen) (100 (
Slide 33: Expenses
Expenses Property expenses decreased slightly year-on-year due to a reduction in deposit insurance premiums. (100 million yen) Non-personnel expenses (1) Branch offices (2) System-related Deposit insurance premiums Others 59 62 60 59 Expenses 60 58 9 9 11 9 11 (100 million yen) 150 Labor costs Non-p
Slide 34: Mechanization investment plan for the current FY
Mechanization investment plan for the current FY Regarding the mechanization investment plan for FY 2022, more than 26% of the total is mechanization investment for customer service improvement projects and profit improvement measures. We will continue to make strategic investments to achieve the (1
Slide 35: Workforce Planning
Workforce Planning The reduction in operating personnel has almost been completed, and the number is stable at around 1,600. Changed the time of retirement from the end of the month to the end of the fiscal year in and after FY 2022 to effectively utilize employees during the period. History of Work
Slide 36: Capital Adequacy Ratio
Capital Adequacy Ratio Even during the COVID-19 crisis, the capital adequacy ratio steadily increased due to the stable accumulation of profits and asset control. Non-consolidated Regulatory Capital Consolidated Regulatory Capital and Capital and Capital Adequacy Ratio Adequacy Ratio (100 million ye
Slide 37: Outlook for FY ending March 31, 2023
Outlook for FY ending March 31, 2023 Earnings forecasts for the fiscal year ending March 2023 remain unchanged because the effects of financial market trends and price increases on the economy must be determined. Non-Consolidated (100 million yen) FY 2022 (Ending Mar. 2023) FY 2022 (Ended Mar. 2021)
Slide 38: Dividends
Dividends Based on our basic dividend policy, we plan to pay a year-end dividend at the same level as FY 2021. (Yen) Annual Dividends Per Share (%) Consolidated Dividend Payout Ratios 50 50.0 Total Payout Ratio 41.6 (Share buyback: 500 million yen) 40.0 35.5 32.4 34.0 31.9 28.8 40 30.0 25.2 7 30.3 2
Slide 39: Distinctive Measures
4 Distinctive Measures Information Disclosure Based on the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) Measures to Address Climate Change Issues Measures Through Our Alliances COVID-19 Crisis Responses and Okinawa’s Economic Outlook Digital Transformat
Slide 40: Information Disclosure Based on TCFD Recommendations
Information Disclosure Based on the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) Governance Indicators and Targets Sustainability Committee Scope 1 and 2 Greenhouse Gas Emissions With the president as Sustainability Committee chairperson, the board With a dea
Slide 41: Measures to Address Climate Change Issues
Measures to Address Climate Change Issues Future Measures Related to TCFD and Scope 3 Emissions New Loan Products in Response to Environmental Issues Reducing Scope 3 Greenhouse Gas Emissions Addition of ZEHs*1 and BELS*2 Certified Buildings/Homes as Mortgage Through financing promotion measures a
Slide 42: Measures Through Our Alliances
Measures Through Our Alliances While calling upon the knowledge and experience of multiple alliances and their member organizations, we strive to achieve more sophisticated financial services. TSUBASA Alliance Okinawa Economic Revitalization Partnership Establishment of the Business Strategy Departm
Slide 43: COVID-19 Crisis Responses and Okinawa's Economic Outlook
COVID-19 Crisis Responses and Okinawa’s Economic Outlook Bank of the Ryukyus utilizes forward-looking provisioning to achieve a framework that supports customers without fear of additional credit costs. This approach is an example of “gradually recovering” as described Regional Economic Trends, a go
Slide 44: Digital Transformation (DX) Measures
Digital Transformation (DX) Measures Through the use of digital technologies, we are striving to bolster our productivity, earning capacity and corporate value while contributing to the local region. Making Ryucom a subsidiary Six Key Performance Indicators (KPIs) for Achieving DX Making an IT-relat
Slide 45: About This Document
About This Document Contact information for questions about this document: General Planning Department, Bank of the Ryukyus, Limited Tel: 098-860-3787 Fax: 098-862-3672 E-mail: ryugin@ryugin.co.jp The information in this document is on a non-consolidated basis unless otherwise specified. Information