77 Bank, Ltd. · TSE:8341

77 Bank — H1 FY2013 Earnings Presentation

25 slides from 77 Bank's earnings presentation, Dec 4, 2012

  1. Slide 1: IR Presentation: Results for the First Half of Fiscal Year Ending March 31, 2013

    IR Presentation Results for the First Half of Fiscal Year Ending March 31, 2013 December 4, 2012 Materials were prepared for the Bank’s presentation of its results for the first half of the fiscal year ending March 31, 2013 held on December 4, 2012.

  2. Slide 2: Contents

    Contents 1. Results for the first half of FY2013 2. Key management measures ‡ Summary of profits and losses 1 ‡Reconstruction work in Miyagi Prefecture 7 ‡ Major accounts / Interest rates / Interest margin 2 ‡Overview of the Medium-term Management Plan 9 ‡ Credit-related expenses and credits disclos

  3. Slide 3: Summary of profits and losses

    1. Results for the first half of FY2013 Summary of profits and losses (JPY bn, %) YoY change First half First half FY2012 FY2013 Increase/ Rate of decrease change % Gross operating income 42.0 40.8 (1.2) (2.8) Interest income [Core gross operating income] [ 41.2] [ 39.8] [ (1.4)] [ (3.4)] Decreased

  4. Slide 4: Major accounts / Interest rates / Interest margin

    1. Results for the first half of FY2013 Major accounts / Interest rates / Interest margin ■ Major accounts (average balances) ■ Interest rates / Interest margin (JPY bn, %) (%) First half First half First half First half YoY change YoY change FY2012 FY2013 FY2012 FY2013 Loans and bills discounted 3,

  5. Slide 5: Credit-related expenses and credits disclosed under the Financial Reconstruction Law

    1. Results for the first half of FY2013 Credit-related expenses and credits disclosed under the Financial Reconstruction Law ■Credit-related expenses (JPY bn) <Credits disclosed under the Financial Reconstruction Law> (%) FY2011 FY2012 1H FY2013 8 Ratio of credits disclosed under Provision of genera

  6. Slide 6: Capital adequacy

    1. Results for the first half of FY2013 Capital adequacy <Capital adequacy ratio> <Management of risk capital> (JPY bn) ○As of end-Sep. 2012 Capital adequacy ratio (non-consolidated): 12.18% 1H FY2013 2H FY2013 Vs. end-Mar. 2012 -0.15 Deferred tax assets Increase in risk assets related to growth in

  7. Slide 7: Securities (1): Fund position and yields

    1. Results for the first half of FY2013 Securities (1) „Fund position and yields <Yields and modified duration of yen-denominated bonds> Fund position increased sharply after *Yen-dominated bonds other than investment trusts (6 months basis) 5.0 3.0 the earthquake disaster Modified duration Yields (

  8. Slide 8: Securities (2): Breakdown of investment securities

    1. Results for the first half of FY2013 Securities (2) „Breakdown of investment securities by type and remaining terms to maturity <Composition ratio by maturity period> <Composition ratio by type> (Excluding stocks and investment trust) Mar. 2011 Mar. 2012 Sep. 2012 Change Mar. 2011 Mar. 2012 Sep.

  9. Slide 9: Reconstruction work in Miyagi Prefecture

    2. Key management measures Reconstruction work in Miyagi Prefecture Progress with Great East Japan Earthquake reconstruction projects Progress (%) Overview Category 0 20 40 60 80 100 (Status of restoration/damage) <Current state> [Infrastructure] 【インフラ】 • Shortage of materials such as embanking mate

  10. Slide 10: Trends in reconstruction funding in Miyagi Prefecture

    2. Key management measures Reconstruction work in Miyagi Prefecture Trends in reconstruction funding in Miyagi Prefecture Cost of damage to Miyagi Prefecture’s capital stock JPY 9,177.1 billion (As of Oct. 10, 2012) Private sector damage JPY 7,056.5 billion Public sector damage JPY 2,120.6 billion H

  11. Slide 11: Overview of the Medium-term Management Plan

    2. Key management measures ちから Overview of the Medium-term Management Plan Started in April 2012 (three-year plan) Medium-term Medium-termManagement Plan:“POWER ManagementPlan: “POWERfor forthe theFuture” Future” ——3636Months MonthsofofRenewal Renewaland andGrowth Growth—— <Priority policies> <Basic

  12. Slide 12: Support earthquake recovery and revitalize the regional economy

    2. Key management measures Support earthquake recovery and revitalize the regional economy Fulfill the Bank’s financial intermediation function „Address reconstruction stage „ Earthquake disaster-related loan „ Diversify methods with respect to funding needs performance (to end-Sep. 2012) the provis

  13. Slide 13: Exit strategy ahead of expiration of the SME Finance Facilitation Act

    2. Key management measures Support earthquake recovery and revitalize the regional economy Exit strategy ahead of expiration of the SME Finance Facilitation Act „ Status of customers [Facilitation of financing] (Overlapping loans) [Loans for affected companies] „ Tighten procedures in the Credit Sup

  14. Slide 14: Contribute to regional reconstruction and development (1)

    2. Key management measures Support earthquake recovery and revitalize the regional economy Contribute to regional reconstruction and development (1) ■ Promote the business matching initiative ■ Strengthen activities in growth fields ‡ Trade fairs with customers *Number of meetings since the earthqua

  15. Slide 15: Contribute to regional reconstruction and development (2)

    2. Key management measures Support earthquake recovery and revitalize the regional economy Contribute to regional reconstruction and development (2) ■Efforts for companies new to Miyagi and Tohoku ■ Support for local companies for Asia business <Impact of opening new Kitakami branch (June 2012)> •Su

  16. Slide 16: Strengthen loan and consulting capabilities

    2. Key management measures Strengthen loan and consulting capabilities Strengthen loans „ Increase corporate loans <Number of customers and loan balance to SMEs> 13,000 (Customers) •Increase lending to SMEs Balance 残高 先数 14,854 1 4 ,8 5 4 14,894 1 4 ,8 9 4 •Ongoing visits to customers and reinforcin

  17. Slide 17: Strengthen assets in custody

    2. Key management measures Strengthen loan and consulting capabilities Strengthen assets in custody ■Promote growth in the assets in custody base (JPY bn)<Change in sales of investment trusts and insurance> 600 60.0 • Capture customers’ post-earthquake needs Investment Insurance 50.2 • Respond to la

  18. Slide 18: Expand investment in human resource development

    2. Key management measures Strengthen loan and consulting capabilities Expand investment in human resource development „ Strengthen finance capabilities „Strengthen consulting capabilities ‡Actively assign female and young employees to the loan and ‡Use head office RMs sales group • Sales support te

  19. Slide 19: Further improve productivity

    2. Key management measures Further improve productivity „ Adhere strictly to a policy of low-cost operations „ Take preparatory steps toward a joint banking system ‡Continue to push ahead with BPR ‡Participate in the MEJAR joint banking system (formally decided in May 2012) Impact of BPR implemented

  20. Slide 20: Continue to develop the financial services platform

    2. Key management measures Continue to develop the financial services platform „Improve the branch network „Implement environmental initiatives • Restore of branches damaged by the disaster • Open eco-friendly branches • Develop the branch network in line with changes in the Install LED lighting and

  21. Slide 21: Projected performance for FY2013: Profits and losses

    3. Projected performance for FY2013 Profits and losses (JPY bn) FY2012 FY2013 result YoY change plan YoY change Gross operating income 82.0 (1.0) 79.2 (2.8) [Core gross operating income] [ 82.1] [ (0.5)] [ 77.2] [ (4.9)] Interest income 72.5 (0.6) 67.4 (5.1) Fees and commissions 9.5 0.3 9.6 0.1 Gain

  22. Slide 22: Projected performance: Major accounts / Interest rates / Interest margin

    3. Projected performance for FY2013 Major accounts / Interest rates / Interest margin (JPY bn, %) FY2012 FY2013 result plan YoY change YoY change Loans and bills discounted 3,525.8 2.0 3,604.0 2.2 Major accounts Securities 2,537.0 24.0 3,102.9 22.3 (average balances) Deposits and certificates of dep

  23. Slide 23: Progress of Medium-term Management Plan (1)

    4. Progress in implementing Medium-term Management Plan Progress of Medium-term Management Plan (1) (numerical plans are formulated and reviewed each fiscal year) I. Average balances of major accounts (Original forecast) (JPY bn, %) FY2012 FY2013 FY2014 FY2015 First half Vs. FY2012 result plan forec

  24. Slide 24: Progress of Medium-term Management Plan (2)

    4. Progress in implementing Medium-term Management Plan Progress of Medium-term Management Plan (2) (numerical plans are formulated and reviewed each fiscal year) III. Profits and losses, etc. (Original forecast) (JPY bn, %) FY2012 FY2013 FY2014 FY2015 result First half plan forecast forecast Change

  25. Slide 25: This is a Japanese-English translation of the presentation material for your convenience. In the

    This is a Japanese-English translation of the presentation material for your convenience. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct. Please note that the projections described in this document do not guarantee f

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