Chugin Financial Group,inc. · TSE:5832
Chugin Financial Group,inc — H1 FY2023 Earnings Presentation
52 slides from Chugin Financial Group,inc's earnings presentation, Mar 1, 2024
Slide 1: 1H FY2023 Earnings Results Briefing (Reference Materials)
1H FY2023 Earnings Results Briefing (Reference Materials) Our challenges build our future. Chugin Financial Group, Inc.
Slide 2: Table of Contents of the References
Our challenges build our future. Table of Contents of the References Chugin Financial Group, Inc. 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 P
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 7,114k㎡ 1.9 17 Jul. 2023 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. 2022
Slide 5: Economic Scale of Okayama Prefecture
Our challenges build our future. Economic Scale of Okayama Prefecture Chugin Financial Group, Inc. (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 product at current prices 15 -5 (L
Slide 6: Industrial Structure of Okayama Prefecture (1)
Our challenges build our future. Industrial Structure of Okayama Prefecture (1) Chugin Financial Group, Inc. Percentage mix of gross domestic product by economic activity Professional/science technology, business Finance, Health and support services insurance hygiene, Transport, Construction social
Slide 7: Industrial Structure of Okayama Prefecture (2)
Our challenges build our future. Industrial Structure of Okayama Prefecture (2) Chugin Financial Group, Inc. Percentage mix of value of manufactured goods shipments (2020) Textiles Electric machinery (%) Food and beverages Chemicals Petroleum Steel General machinery Transport machinery Others Okayam
Slide 8: Growth Infrastructure and Potential of Okayama Prefecture (1)
Our challenges build our future. Growth Infrastructure and Potential of Okayama Prefecture (1) Chugin Financial Group, Inc. 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
Slide 9: Growth Infrastructure and Potential of Okayama Prefecture (2)
Our challenges build our future. Growth Infrastructure and Potential of Okayama Prefecture (2) Chugin Financial Group, Inc. 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 1,742 1,750 1,700 1,681 1,650 1,620 1,600 1,550 1,5
Slide 10: Growth Infrastructure and Potential of Okayama Prefecture (3)
Our challenges build our future. Growth Infrastructure and Potential of Okayama Prefecture (3) Chugin Financial Group, Inc. Cross points of land transportation in Western Japan Two east-west highways (SANYO EXPWY and CHUGOKU EXPWY) and a highway from the Sea of Japan to the Pacific Ocean via the Set
Slide 11: Growth Infrastructure and Potential of Okayama Prefecture (4)
Our challenges build our future. Growth Infrastructure and Potential of Okayama Prefecture (4) Chugin Financial Group, Inc. Freight forwarding volume in the Chugoku-Shikoku region (Million ton-km) 7,000 千ドル 6,000 5,000 4,000 3,000 2,000 1,000 0 Tottori Shimane Okayama Hiroshima Yamaguchi Tokushima K
Slide 12: Growth Infrastructure and Potential of Okayama Prefecture (5)
Our challenges build our future. Growth Infrastructure and Potential of Okayama Prefecture (5) Chugin Financial Group, Inc. High potential for renewable energy generation by taking advantage of the prefecture’s many sunny days Weather Okayama Prefecture is a “sunny prefecture” blessed with a mild cl
Slide 13: Economic Conditions of Okayama Prefecture
Economic Conditions of Okayama Prefecture
Slide 14: Local Economic Trends (1)
Our challenges build our future. Local Economic Trends (1) Chugin Financial Group, Inc. The economy of Okayama Prefecture is heading for recovery amid the weakening of the impact of COVID-19. Terrorist attacks in the U.S. BOJ quantitative easing Sub-prime mortgage crisis Collapse of Lehman Brothers
Slide 15: Local Economic Trends (2)
Our challenges build our future. Local Economic Trends (2) Chugin Financial Group, Inc. 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
Slide 16: Local Economic Trends (3)
Our challenges build our future. Local Economic Trends (3) Chugin Financial Group, Inc. 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 res
Slide 17: Local Economic Trends (4)
Our challenges build our future. Local Economic Trends (4) Chugin Financial Group, Inc. Consumer spending: Gradually recovering against the backdrop of an increase in the flow of people, etc. [Department store and supermarket sales (all stores; YoY)] (%) 15 10 5 0 -5 -10 -15 2019/1 2020/1 2021/1 202
Slide 18: Local Economic Trends (5)
Our challenges build our future. Local Economic Trends (5) Chugin Financial Group, Inc. Housing investment: Weakening 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 housi
Slide 19: Local Economic Trends (6)
Our challenges build our future. Local Economic Trends (6) Chugin Financial Group, Inc. 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 Labor Bur
Slide 20: Local Economic Trends (7)
Our challenges build our future. Local Economic Trends (7) Chugin Financial Group, Inc. 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
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 reference purposes, the consolidated figures for FY2021 (and as of March 31, 2022) of the forme
Slide 22: Summary of Earnings
Summary of Earnings [Consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 (Million yen) 1H 1H 1H 1H 1H Ordinary revenue 128,621 63,780 127,318 58,173 116,976 60,594 128,565 91,459 183,586 88,355 Banking revenue 119,894 59,142 117,217 54,772 107,330 56,758 116,870 73,59
Slide 23: Capital Adequacy Ratio
Capital Adequacy Ratio [Non-consolidated]（％,Billion yen） FY2019 1H FY2020 FY2020 1H FY2021 FY2021 1H FY2022 FY2022 1H FY2023 Overall capital adequacy ratio 12.70 12.63 13.01 13.41 13.23 12.17 11.92 11.28 Tier 1 ratio 12.70 12.63 12.77 13.17 12.98 11.92 11.67 11.05 Tier 1 ratio including common share
Slide 24: Capital Allocation and Integration Risks
Our challenges build our future. Capital Allocation and Integration Risks Chugin Financial Group, Inc. Plan and result for FY2023 FY2023 Risk exposure [Allocation source] (billion yen) (billion yen) Value (as of end of Sep. 2023) Acceptable risk level Allocated capital Allocation source 497.5 497.5
Slide 25: Status of Group Companies
Our challenges build our future. STATUS OF GROUP COMPANIES Chugin Financial Group, Inc. Business line Effective equity FY2020 1H FY2021 FY2021 1H FY2022 FY2022 1H FY2023 ratio (million yen; %) Ordinary income 12,453 6,534 13,339 7,006 17,461 5,558 The Chugin Lease Company, Leasing 100.00 Ordinary pr
Slide 26: Key Press Releases
Our challenges build our future. Key Press Releases Chugin Financial Group, Inc. 2023 April 3: [FG] Establishment of Chugin Energy Co., Ltd. [FG] Revision to the “Chugin Group SDG Declaration” April 5: [FG] Expansion of Support for “Chugin no Mori (Restoration Project for Wind-Damaged Trees)” April
Slide 27: Management Indicators, etc. for The Chugoku Bank
Management Indicators, etc. for The Chugoku Bank
Slide 28: Summary of Earnings (1)
Summary of Earnings (1) [Non-Consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 (Million yen) 1H 1H 1H 1H 1H Ordinary revenue 113,461 56,143 110,829 49,824 99,765 51,869 110,337 82,338 164,467 79,483 Banking revenue 104,638 51,457 100,630 46,415 90,108 47,999 98,558
Slide 29: Summary of Earnings (2)
Summary of Earnings (2) [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Million yen） 1H 1H 1H 1H 1H Bond-related gains/losses 1,117 1,084 -524 822 -552 -447 -2,949 -15,362 -19,778 -1,279 Gains on sales of bonds 4,865 1,727 3,026 1,407 2,496 3,506 9,400 8,817
Slide 30: Breakdown of Ordinary Revenue
Breakdown of Ordinary Revenue [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Million yen） 1H 1H 1H 1H 1H Ordinary revenue 113,461 56,143 110,829 49,824 99,765 51,869 110,337 82,338 164,467 79,483 Banking revenue 104,638 51,457 100,630 46,415 90,108 47,999 9
Slide 31: Breakdown of Ordinary Expenses
Breakdown of Ordinary Expenses [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Million yen） 1H 1H 1H 1H 1H Ordinary expenses 91,541 43,899 95,353 38,712 80,720 37,521 86,928 63,113 136,953 66,499 Banking expenses 83,680 39,680 82,776 35,161 70,881 34,342 78,
Slide 32: Breakdown of Expenses
Breakdown of Expenses [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Million yen） 1H 1H 1H 1H 1H Expenses (1) 54,211 27,397 54,010 26,404 52,783 25,914 51,986 25,330 51,316 26,069 Personnel expenses 27,834 14,164 28,204 13,794 27,725 14,022 28,037 14,103 27
Slide 33: Principal Returns
Principal Returns [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （％） 1H 1H 1H 1H 1H １．Interest-bearing asset yield 1.03 1.02 0.98 0.84 0.79 0.77 0.72 0.93 1.01 1.28 Loan yield 1.08 1.06 1.04 0.92 0.90 0.87 0.87 1.00 1.11 1.41 Securities yield 1.17 1.20 1.10
Slide 34: Major Accounts (Year-end Balance): Assets
Major Accounts (Year-end Balance):Assets [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total assets 8225.7 8357.9 8113.6 8741.7 9122.6 9854.2 10177.9 9660.9 9803.4 10265.5 Management account 7322.4 7527.2 7391.1 7752.0 7958.6 81
Slide 35: Major Accounts (Year-end Balance): Liabilities and Net Assets
Major Accounts (Year-end Balance):Liabilities and Net Assets [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total liabilities and net assets 8225.7 8357.9 8113.6 8741.7 9122.6 9854.2 10177.9 9660.9 9803.4 10265.5 Total liabilitie
Slide 36: Major Accounts (Average Balance): Assets
Major Accounts (Average Balance):Assets [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total assets 8155.4 8173.8 8216.0 8563.5 8754.4 9333.7 9639.6 10020.7 9890.5 9966.2 Management account 7748.4 7760.2 7816.7 8128.4 8286.3 8714
Slide 37: Major Accounts (Average Balance): Liabilities and Net Assets
Major Accounts (Average Balance):Liabilities and Net Assets [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total liabilities and net assets 8155.4 8173.8 8216.0 8563.5 8754.4 9333.7 9639.6 10020.7 9890.5 9966.2 Total liabilities
Slide 38: Deposits (Year-end Balance)
Deposits (Year-end Balance) [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Okayama 5095.3 4971.2 5186.3 5485.5 5726.0 5725.9 5938.8 5903.5 6102.0 6058.3 Individuals 3734.7 3761.0 3832.7 3994.1 4108.1 4203.3 4294.5 4345.0 4374.8 4
Slide 39: Deposits (Average Balance)
Deposits (Average Balance) [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Okayama 4875.4 5000.8 5016.6 5403.1 5465.3 5746.8 5766.8 5982.4 5967.1 6066.4 Individuals 3705.4 3768.1 3791.5 3945.7 4003.3 4176.1 4219.3 4336.2 4356.6 43
Slide 40: Loans (Year-end Balance)
Loans (Year-end Balance) [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H General loans 4298.2 4281.1 4408.7 4565.9 4666.3 4679.2 4808.7 4957.7 5115.5 5336.4 Large companies 775.4 741.1 765.9 814.9 834.4 805.3 851.9 873.1 954.1 996
Slide 41: Loans (Average Balance)
Loans (Average Balance) [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H General loans 4219.4 4274.4 4311.3 4495.4 4561.0 4673.5 4699.2 4862.2 4941.1 5178.4 Local development 2038.1 2081.9 2100.8 2192.2 2224.0 2228.9 2224.3 2228.7
Slide 42: Loans by Industry (Year-end Balance)
Loans by Industry (Year-end Balance) [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Domestic branches 4786.4 4761.6 4884.5 5035.8 5122.1 5134.3 5244.6 5387.6 5529.3 5756.5 Manufacturing 675.7 644.3 673.1 703.4 712.4 672.8 698.1 6
Slide 43: Loans by Industry (Composition Ratio)
Loans by Industry (Composition Ratio) [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 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% 13.5% 13.8% 14.0% 13.9% 13.1% 13.3% 12.7% 13.6% 12
Slide 44: Market Shares of Deposits
Market Shares of Deposits [Year-end balance] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （％） 1H 1H 1H 1H 1H Okayama Chugoku Bank 49.4 49.2 49.8 49.8 50.3 50.4 51.1 51.2 51.7 51.4 Other banks 50.6 50.8 50.2 50.2 49.7 49.6 48.9 48.8 48.3 48.6 Regional banks except for Chugoku
Slide 45: Market Share of Loans
Market Share of Loans [Year-end balance] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （％） 1H 1H 1H 1H 1H Okayama Chugoku Bank 43.0 42.6 42.8 42.8 42.9 43.2 43.4 43.6 43.3 44.3 Other banks 57.0 57.4 57.2 57.2 57.1 56.8 56.6 56.4 56.7 55.7 Regional banks except for Chugoku Ban
Slide 46: Securities
Securities Balance by type [Non-consolidated] FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 （Billion yen） 1H 1H 1H 1H 1H Year-end balance 2394.9 2458.7 2345.1 2391.3 2622.5 2565.3 2509.8 2515.4 2319.2 2366.2 JGBs 650.2 609.1 653.4 682.7 756.5 676.2 694.2 715.4 564.4 563.8 Mun
Slide 47: Balance and Durations of Securities by Remaining Period
Balance and Durations of Securities by Remaining Period Outstanding balance by remaining period to maturity for yen-denominated Securities 10,000 （Billion yen） 1H FY2019 9,000 1H FY2020 1H FY2021 8,000 1H FY2022 1H FY2023 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1year or less More than More than
Slide 48: Handling of Housing Loans
Handling of Housing Loans [Loans executed by interest type (new houses + refinancing)] [Breakdown of use of loans executed]（％） 140 Long-term fixed rate 億円 Refinancing, etc. 10-year fixed rate 5-year fixed rate 7.3 3-year fixed rate 120 Floating New houses 92.7 100 Total loans executed during the per
Slide 49: Non-performing Loans
Non-performing Loans Loans disclosed based on the Financial Reconstruction Act [Non-consolidated] End of End of End of End of End of End of End of End of End of End of （Million yen） Mar.2019 Sep.2019 Mar.2020 Sep.2020 Mar.2021 Sep.2021 Mar.2022 Sep.2022 Mar.2023 Sep.2023 Bankrupt/de facto bankrupt l
Slide 50: Transition of Debtor Categories: 1H
Transition of Debtor Categories: 1H (Upper level: Number of debtors; Lower level: Value (Billion yen)) Favorable End of Sep.2023 Deterio-ration turnaround Other loans Manage-ment Near De facto Other Performing requiring Bankrupt required bankruptcy bankruptcy (See Note) attention Performing 155,473
Slide 51: Transition of Debtor Categories: 1H (Composition)
Transition of Debtor Categories: 1H (Composition) (Upper level: Number of debtors; Lower level: Value (Billion yen)) Favorable End of Sep.2023 Deterio-ration turnaround Other loans Manage-ment Near De facto Other Performing requiring Bankrupt required bankruptcy bankruptcy (See Note) attention Perfo
Slide 52: Chugin Financial Group, Inc.
Our challenges build our future. Chugin Financial Group, Inc. 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
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