Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2015 Earnings Presentation
52 slides from Bank Of The Ryukyus,limited's earnings presentation, June 2016
Slide 1: Bank of the Ryukyus Management Briefing for FY2015
Bank of the Ryukyus Management Briefing for FY2015 By Masaru Mukaesato Winner of the 23nd (fiscal 2014) Bingata Design Contest presented by the Bank of the Ryukyus
Slide 2: The Financial and Economic Environment of Okinawa Prefecture
The Financial and Economic Environment of Okinawa Prefecture 1
Slide 3: Overview of Okinawa Prefecture
■Overview of Okinawa Prefecture From Japan’s Southern Tip to the Heart of East Asia China 1.3 billion Forecast rate 1.07% (highest in Japan: 2007-2020 forecast rate of real of economic growth economic growth (Japan Center for Economic Research)) 0.40% (Ranked second in Japan, 2014) Population growth
Slide 4: Economic Trends (Bank of Japan Tankan)
■Economic Trends (Bank of Japan Tankan) High Level Exceeding 40 Bank of Japan Tankan （ Business condition diffusion index : Strong-Week） Mar.’16 Japan Okinawa +46 60 40 20 0 -20 Mar.’16 +7 -40 -60 Feb.'92 Feb.'94 Feb.'96 Mar.'98 Mar.'00 Mar.'02 Mar.'04 Mar.'06 Mar.'08 Mar.'10 Mar.'12 Mar.'14 Mar.'16
Slide 5: Regional Economic Climate Chart (April 2016)
■Regional Economic Climate Chart (April 2016) HOKKAIDO AREA Fine Fine, partly cloudy Cloudy Cloudy, rain in places TOHOKU AREA Rain HOKURIKU AREA CHUGOKU AREA KOSHINETSU AREA KYUSYU AREA KINKI AREA KANTO ARE Fine in Okinawa only OKINAWA PREFECTURE TOKAI AREA SHIKOKU AREA Source: Regional Banks Assoc
Slide 6: Population (Future Estimates, Birthrates)
■Population (Future Estimates, Birthrates) Okinawa Prefecture’s population is projected to increase for the foreseeable future Projected Population Okinawa Prefecture Population Seen in Relation to Age Groups Youth population Working-age population （1995年＝100） （Thousands） Elderly population Elderly
Slide 7: Estimates of the Number of Households
■Estimates of the Number of Households Continued increase in the number of households Estimates of the Number of Households （1995年＝100） Japan Okinawa 145.5 143.0 145 139.6 135.1 135 128.9 125 120.8 Peak 114.5 115.2 114.8 113.5 115 110.3 111.7 111.1 105 100.0 106.5 95 100.0 85 75 65 1995 2000 2005 20
Slide 8: Employment Conditions (Trends in the overall unemployment rate)
■Employment Conditions (Trends in the overall unemployment rate) Employment conditions on improving trend Trends in the Overall Unemployment Rate Male Unemployment Rate Trends 9.0% 8.4% Japan Okinawa Okinawa Japan 10% 8.5% 8.4% 7.8% 7.9% 8.1% 7.9% 8.0% 7.4% 7.5% 8% 6.8% 7.1% 5.9% 6% 5.3% 7.0% 4.6% 4
Slide 9: Employment Conditions (Bank of Japan TANKAN, Actual Salary Amounts)
■Employment Conditions (Bank of Japan TANKAN, Actual Salary Amounts) Importance of Improving Labor Productivity Trends in Employment Conditions DI (Bank of Japan TANKAN) (Employee Surplus) – (Employee Shortage) / % point 20 Japan Okinawa 10 Employee Surplus 0 -10 -18 -20 Employee Shortage -30 -33 -4
Slide 10: Trends in Land Prices
■Trends in Land Prices Both Commercial and Residential Land Prices in Okinawa Rising at More Than National Levels Commercial-use land (YoY) Residential-use land (YoY) 14.0% 14.0% Japan Okinawa Japan Okinawa 12.0% 12.0% 10.0% 10.0% 8.0% 8.0% 6.0% 6.0% 4.0% 4.0% +2.0% +1.7% 2.0% 2.0% 0.0% 0.0% 0.9％ -0
Slide 11: Tourism (Visitor Numbers to Okinawa)
■Tourism (Visitor Numbers to Okinawa) Visitor Numbers to Okinawa Breakdown of Foreign Travelers by Nationality Visitors from other parts of Japan (Left scale) (Thousands) Visitors from overseas (Left scale) ？ Billions of Yen 9,000 Revenues from tourism (Right scale) 2015 Total: 1.5 million 516.9 7,7
Slide 12: Tourism (Overseas Visitors by Air/Sea Routes)
■Tourism (Overseas Visitors by Air/Sea Routes) Okinawa Visitor Numbers by Air/Sea Routes Trends in Numbers of Cruise Ships Visiting Air Routes Sea Routes Ports in Okinawa Prefecture （Times） Naha Port （Thousands） Actual Planned 500 Ishigaki Port 1,600 Taira Port Scheduled Overseas Routes (Fiscal 20
Slide 13: Tourism (Second Runway at Naha Airport, MICE)
■Tourism (Second Runway at Naha Airport, MICE) 【Second Runway at Naha Airport】 Schematic Layout Diagram of Large-Scale MICE Facility Additional construction of a 2,700m runway to address the increase in air travel demand Total project Commencement of Completion of Basic Functions of Facility Multi-p
Slide 14: Okinawa Promotion Budget
■Okinawa Promotion Budget Excerpt from a comment by Secured an annual budget of more than ¥300 billion to help develop and promote Prime Minister Shinzo Abe on Okinawa throughout the current Okinawa Development and Promotion Plan period December 24, 2013 (fiscal 2012 to fiscal 2021) （ Billions of Ye
Slide 15: Projects in Okinawa Prefecture (Planned)
■Projects in Okinawa Prefecture (Planned) Main island of Okinawa Private-sector businesses Public works Hotel Hotel Hotel Hotel Hotel Use of vacant lot at Gimbal Training Ground Hotel Hotel Land adjustments Hotel Hotel Fishing harbor development project University of the Ry
Slide 16: Financial Results for FY2015
Financial Results for FY2015 15
Slide 17: Financial Highlights
■Financial Highlights Consolidated First final profit* broke through ¥10.0 billion barrier Profit/Loss Non-consolidated Increased revenue and earnings for three consecutive periods Business Total financing surpassed ¥2 trillion milestone Scope Topics OCS, Ltd. made wholly owned subsidiary * Net
Slide 18: Financial Summary (Non-Consolidated)
■Financial Summary (Non-Consolidated) Increased revenue and earnings for three consecutive periods （Billions of Yen） FY2015 FY2014 Year-on-year change Ordinary revenue 40.2 +1.5 38.7 Business gross profit (a) 31.7 +0.5 31.2 Expenses (b) 22.4 +0.4 22.0 Real net business profit (c=a-b) 9.3 +0.2 9.1 Ne
Slide 19: Financial Summary (Consolidated)
■Financial Summary (Consolidated) Besides Individual Contributory Factors, Making OCS into Subsidiary Increased Revenue and Earnings （Billions of Yen） FY2015 FY2014 Year-on-year change Ordinary revenue 59.9 +4.9 55.0 Ordinary expenses 49.8 +4.4 45.4 Ordinary profit 10.0 +0.5 9.5 Extraordinary gains
Slide 20: Factors Contributing to Non-consolidated/Consolidated Differences in Net Income
■Factors Contributing to Non-consolidated /Consolidated Differences in Net Income for Current Fiscal Year Non-consolidated/Consolidated Scale Factor Attributable to Making OCS into Consolidated Subsidiary: 2.04 Times Factors Contributing to Non-consolidated / Consolidated Differences in Net Income f
Slide 21: Factors Behind the Change in Net Income (Non-Consolidated)
■Factors Behind the Change in Net Income (Non-Consolidated) Increase in Actual Business Net Income, Increase in Net Income due to Decreased Credit Limit Costs/Income Taxes (Billions of Yen) Net Income Factors Behind the Change in Net Income 6.0 (Millions of Yen) 251 5.0 758 5.0 166 Decrease in gains
Slide 22: Factors Behind the Change in Real Net Business Profit (Non-Consolidated)
■Factors Behind the Change in Real Net Business Profit (Non-Consolidated) Increases for Three Consecutive Periods Due to Increased Loan Interest/Gain on Sale of Securities Real Net Business Profit Factors Behind the Change in Real Net Business Profit (Billions of Yen) (Millions of Yen) 18 11 163 Inc
Slide 23: Loans (Non-Consolidated)
■Loans (Non-Consolidated) Favorable increases in both private and corporate businesses Loans (Non-Consolidated) (Billions of Yen) Individuals Corporations 1,600 Local public authorities and other 8.0% Rate of increase (Compared with the end of the previous period:Right scale) 1,465.5 7.1% 1,399.2 1,
Slide 24: Loans (Business/Consumer Loans)
■Loans (Business/Consumer Loans) Steady Increases in Business/Consumer Loans Business Loans Consumer Loans Real estate, rental and leasing Wholesale and retail Other loans Mortgage loans Rate of increase (Right scale) Construction Medical and welfare Manufacturing Others (Billions of Yen) (Billions
Slide 25: Trends in Earnings Yields (Non-Consolidated)
■Trends in Earnings Yields (Non-Consolidated) Increased Income for Two Consecutive Periods by Decreased Loan Investment Yields and Balance Increase Factors (Millions of Yen) Trends in Loan Interest Increases/Decreases Trends in Earnings Yields Earnings yield factors Loan investment yields Loan inves
Slide 26: Deposits (Non-Consolidated)
■Deposits (Non-Consolidated) Significant Increases in Private/Public Money, Including Corporations, Surpassed Two Trillion Yen (Billions of Yen) Deposits (Non-Consolidated) 2,200 Individuals Corporations Public funds Rate of increase (Right scale) 2,038.4 8.0% 1,967.2 2,000 7.2% 1,882.8 183.3 1,758.
Slide 27: Assets in Custody (Non-Consolidated)
■Assets in Custody (Non-Consolidated) Increased Single-Premium Insurance but Decreased Investment Trust, JGB Balances (Billions of Yen) Assets in Custody Aggregation method for single-premium insurance JGBs Investment trusts Single-premium insurance 200 Cumulative sales total Balance 164.6 162.5 160
Slide 28: Securities (Non-Consolidated)
■Securities (Non-Consolidated) Balance Decrease by Redemption of JGBs, Steady Increase in Revenue Securities (Non-Consolidated) Trends in Securities-Related Payments JGBs Bonds Interest and dividends Class 5 bonds Local government bonds Other (foreign bonds, etc.) Share 3 balance of account Total (B
Slide 29: Expenses (Non-Consolidated)
■Expenses (Non-Consolidated) Increase, Due to Increases in Non-Personnel Expenses and Taxes ; OHR Flat Trends in Expenses and OHR (Billions of Yen) Personnel expenses Non-personnel expenses 25 Taxes OHR(Right scale) 80% 22.0 22.4 21.3 21.4 21.7 1.1 1.3 1.4 1.1 1.1 20 74.73% 75% 73.13% 71.72% 15 10.1
Slide 30: Credit Limit Costs/Written-off Loans (Non-Consolidated)
■Credit Limit Costs/Written-off Loans (Non-Consolidated) Credit Limit Costs/Written-off Loans on Downward Trend Trends in Net Credit Limit Costs Trends in Written-off Loans Gain on amortized loans Substandard loans Loans in danger of default Other amounts Claims in bankruptcy Written-off loan ratio
Slide 31: Capital Ratio (Non-Consolidated)
■Capital Ratio (Non-Consolidated) Capital Adequacy Ratio Declines as Subordinated Debt Redemption Causes Capital Amount Decrease Capital Ratio Risk Assets (Billions of Yen) Regulatory capital Capital ratio (Right scale) (Billions of Yen) 10.50% 140 1,400 9.82% 9.68% 10% 9.15% 120 8.75% 1,200 1,167.1
Slide 32: Earnings Forecasts for FY2016 (Non-Consolidated)
■Earnings Forecasts for FY2016 (Non-Consolidated) Decrease of ¥700 Million Expected in Current Period Net Income (Billions of Yen) FY2016 FY2015 (Forecasts) Year-on-year change Ordinary revenue 38.7 ▲1.5 40.2 Ordinary profit 6.4 ▲1.9 8.3 Net income 4.3 ▲0.7 5.0 * Increase and decrease is presented o
Slide 33: Earnings Forecasts for FY2016 (Consolidated)
■Earnings Forecasts for FY2016 (Consolidated) Profit Decline Expected Due to Recoil from Gain on Negative Goodwill and Other Factors (Billions of Yen) FY2016 FY2015 (Forecasts) Year-on-year change Ordinary revenue 59.0 ▲0.9 59.9 Ordinary profit 7.7 ▲2.3 10.0 Net income for the period attributable to
Slide 34: ROE/PBR (Consolidated)
■ROE/PBR (Consolidated) Net Income/ROE per Share Net Assets/PBR per Share Net Income per Share Net Assets per Share (Yen) Net Income per Share (excluding negative goodwill, etc.) (Yen) PBR (Right scale) (Magnification) * Calculated on share price at March 31 each year 300 ROE 12.0% 3,000 0.80 ROE (e
Slide 35: Bank of the Ryukyus Strategy
Bank of the Ryukyus Strategy 34
Slide 36: Long-Term Vision
■Long-Term Vision The Bank of the Ryukyus Group that is our customers’ bank of preference and enjoys the overwhelming support of the local community.” Speed Providing zero lead-time services Providing Our Customers with Solution the Three “S’s” (Value) Unique solutions from a bank that possesses loc
Slide 37: New Medium-Term Management Plan (April 2015 to March 2018)
■New Medium-Term Management Plan (April 2015 to March 2018) Shared Value 2015 －Establishing value provided to customers by displaying the Group’s comprehensive capabilities－ Corporate Business Strategy Individual Business Strategy Growth Strategies Promote comprehensive trading by ‐Provide growth-fi
Slide 38: Priority Issues for Fiscal 2016 in Consideration of Negative Interest Rate
■Priority Issues for Fiscal 2016 in Consideration of Negative Interest Rate Dealing with Negative Impact of Different Dimension in Quantitative Easing while Aiming to Improve Profitability by Boosting Policies! “Ahead of Schedule Realization” of Medium-Term Measures Priority Issue Ⅰ Priority Issue Ⅱ
Slide 39: Corporate Business Strategy (Medical/Welfare Field)
■Corporate Business Strategy (Medical/Welfare Field) Based on declining birth rate and growing proportion of elderly people, strengthen support systems geared toward medical/welfare field Development of Human Resources Familiar with Medical Managers and Trends in Loan Balances Grade 2 Medical Manage
Slide 40: Corporate Business Strategy (Sales Channel Expansion Support)
■Corporate Business Strategy (Sales Channel Expansion Support ) Overseas Sales Channel Development Backup by Holding Joint Meetings Hong Kong Gourmet Food Business Meeting Third Business Forum to Convey Okinawa’s Culinary and Visual Charms Held ～ Yamagata Bank, Hachijuni Bank, Musashino Bank, Bank o
Slide 41: Overseas Networks
■Overseas Networks Building frameworks capable of responding to various overseas development needs Tokio Marine & Nichido Fire Insurance Co., Ltd. Overseas Halal Japan Business Association Halal development business support Mitsui Sumitomo Insurance Company, Limited support Brand Research Institute,
Slide 42: Corporate Business Strategy (Regional Regeneration [1])
■Corporate Business Strategy (Regional Regeneration [1]) Collaboration with Naha City Partnership Agreement with Aozora Bank Naha City/Bank of the Ryukyus Joint Sponsorship Establishment Support Seminar 【Main Business Alliance Areas】 ◆ Business matching ◆ Interregional cooperation Agreement signed J
Slide 43: Corporate Business Strategy (Regional Regeneration [2])
■Corporate Business Strategy (Regional Regeneration [2]) Providing a Variety of Finance Procurement Means Finance Procurement by Crowd-Funding First Project Project Overview Turning tuna into raw ham!? “Raw ham from the sea,” smoked Okinawa-farmed tuna for which no additives at all are used ＜Schemat
Slide 44: Industry-Academia Collaboration (Corporate Business Strategy)
■ Industry-Academia Collaboration (Corporate Business Strategy) Utilizing Bank of the Ryukyus networks to match University of the Ryukyus with local companies Industry-Academia-Government Partnership Agreement with University of the Ryukyus First Project Research Results in Okinawa Zero-emission Tec
Slide 45: Corporate Business Strategy (Expansion of Product/Service Lineups)
■Corporate Business Strategy (Expansion of Product/Service Lineups) Expansion of product/service lineups in tune with customers’ varying life plans Housing-Related Loans Meeting Diverse Needs An Okinawan Bank First! An Okinawan Bank First! Sales launched Sales launched February 2015 March 2016 An Ok
Slide 46: Corporate Business Strategy (Credit Card Business)
■Corporate Business Strategy (Credit Card Business) Efforts to Become Pioneer Even among Other Banks in Japan Launched VISA debit card October 2015 Immediate Settlement with no Need for Cash ⇒Zero time spent waiting in line at ATMs and zero out-of- hours handling charges More than 200,000 cards is
Slide 47: Private Business Strategies (Non-Face-to-Face Sales Channels)
■Private Business Strategies (Non-Face-to-Face Sales Channels) Transition from a mere Back Office to Profit Center Sales Capability Strengthening for Non-Face-to-Face Channels ⇒Proactive Service Proposals to Customers by Outbound Promotions Increase in the Number of Seats ＜36seats ⇒ 50seats＞ ⇒In
Slide 48: IT/Sales Information Strategy
■IT/Sales Information Strategy Evolution of One-to-One marketing × Transformation in Work Styles April 2016 Prepared approx. 1,000 iPhones for employees May 2015 Ryugin Azukari Archive fully PC operational Mobile DBC From February 2014 Distribution November 2015 of 600 iPad devices Extended function
Slide 49: Group Strategy
■Group Strategy Provide comprehensive services that leverage Group capabilities Ryugin DC Co., Ltd. Ryugin Research Institute., Ltd. Ryugin Business Service Co., Ltd. Ryugin Hosho Co., Ltd. April 2014 Ryugin Hosho Co., Ltd . made wholly owned subsidiary June 2016 Plan to Bring Ryugin Office Service
Slide 50: Human Resource Strategy
■ Human Resource Strategy Diversity Promotion Human Resource Training Further Improvements in Employment Environment for Trends in Numbers of Professionally Qualified Personnel Women to Excel as Managers (Staff) FP1 Class Small/Medium Enterprise Consultants 254 To increase number of female employees
Slide 51: Local Responsibility Activities
■Local Responsibility Activities Proactive Involvement in Local Society Welfare Sports Activity Promotion Support Sponsor of Ryukyu Golden Kings basketball team Nice Heart Bazaar * Winning of Prefectural Governor’s Award at Okinawa Prefecture Welfare Community Planning Awards Local Strong Event Supp
Slide 52: About This Presentation
■About This Presentation All enquiries regarding this presentation should be addressed to: Bank of the Ryukyus,Limited General Planning Department Telephone: +81-98-860-3787 Fax: +81-98-862-3672 E-mail: ryugin@ryugin.co.jp The information in this presentation is on a non-consolidated basis unless ot