Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2011 Earnings Presentation
21 slides from Bank Of The Ryukyus,limited's earnings presentation, 2012
Slide 1: Management Briefing For the FY2011
Bank of the Ryukyus Management Briefing For the FY2011
Slide 2: Financial and Economic Environment
Financial and Economic Environment Economic Trends BIS Capital Ratio Tourism Earnings Forecast for FY2012 Construction Medium-term management plan Financial Results for 2011 Overview of new medium-term FY2011 Results Summary management plan FY2011 Results Summary Basic Strategy Loans Growth Strategy
Slide 3: Economic Trends
Economic Trends Economy continues to recover on back of firm trends in consumer spending and tourism Employed persons(right axis) (Thousand persons) Bank of Japan "Tankan" Ratio of Unemployed in Labor Force Diffusion Index Employed persons(right axis) Ratio of Unemployed in Labor Force All Japan Oki
Slide 4: Tourism
Tourism Number of tourists visiting Okinawa dropped sharply in 2011 due to impact of March 11 earthquake and tsunami, but recovery to pre-disaster level seen recently Number of tourists and revenues from tourism (Billions of Yen) Monthly trends in tourist arrivals (Thousands) Revenues From tourism(r
Slide 5: Construction
Construction Number of housing starts rose against backdrop of increases in population and number of households (billions of Yen) 1,000
Slide 6: FY2011 Results Summary
FY2011 Results Summary Net business profit on core banking operations decreased due to lower net interest income resulting from decline in interest rate on loans Billions Change of Yen) Core business gross profit Net interest income Interest and dividend income on securities Fees and commissions E x
Slide 7: FY2011 Results Summary
FY2011 Results Summary Net income decreased due to one-time factors including drawdown of deferred tax assets due to impact of impairment losses on securities and lowering of corporate income tax rate Change Billions of Yen) Net business profit on core banking operations Loan write-offs, etc. Revers
Slide 8: Loans
Loans Loans to individuals increased, including mortgage loans and card loans Busines Loans Balance of Loans Billions of Yen) Real estate Wholesale and retail Construction Others To local gov ernment and other public entities To corporations Billions of To indiv iduals Yen 1,200 1,000 800 End Mar08
Slide 9: Deposits and Assets in Custody
Deposits and Assets in Custody Deposits from individuals, corporations, and public funds all continued growing steadily; balance of deposits tops ¥1,700 billion Assets in Custody Billions of Yen Billions of Yen Governmentbonds Investmenttrusts 2,000 Balance of Deposits and Assets in custody Individu
Slide 10: Gains/losses on securities
Gains/losses on securities Impairment losses booked due to increase in valuation loss on holdings of stocks Billions of Average balance of securities, and yields Yen Gains/losses on securities Investment trusts, other Billions of Yen Stocks Gains/losses on stock transactions Bonds Gains/losses on JG
Slide 11: Expenses
Expenses Non-personnel expenses reduced by ¥600 mn. through reduction in computer system costs (Billions of Yen) Expenses Number of Employees Personnel expenses Non-personnel expenses taxes Core OHR(right axis Number of nonregular employees 2000 Number of regular employees 1800 1600 1400 1200 1000 8
Slide 12: Credit Costs
Credit Costs NPL disposal at low level due to reversal of general reserve for possible loan losses Land Price (Billions of Yen) Credit Costs Nationwide (commercial-use land) Special factors,etc Okinawa Pref. (commercial-use land) Deteriorating buisiness environment,etc Faling land prices Total Billi
Slide 13: NPLs
NPLs* Total and ratio of NPLs kept low Breakdown of the factors behind Change in NPLs* (Billions of Yen) Balance of NPLs* (Billions of Yen) Removal from balance sheet,etc Bankrupt claims and those of similar nature Upgrading(asset categories) Chages in asset categories under mandatory disclosure Dou
Slide 14: BIS Capital Ratio
BIS Capital Ratio Declined due to increase in risk assets such as loans, but remains at satisfactory level Deferred tax assets as a percentage of T ier 1 capital BIS ratio (Billions Tier capital excluding deferred tax assets of Yen) Tier capital:deferred tax asetts (Billions of Yen) Regulatory capit
Slide 15: Earnings Forecast for FY 2012
Earnings Forecast for FY 2012 Revenue expected to maintain previous year s level Higher net income expected despite forecast increase in net credit costs Billions of Yen Year-on-year FY2012 FY2011 Change B u s i n e s s g r o s s profit Net business profit on core banking operations Ordinary profit
Slide 16: Overview of new medium-term management plan
Overview of new medium-term management plan The operating environment for banks continues to undergo dramatic change. At the Bank of the Ryukyus, we need to create a new business model that will enable us overcome the difficulties posed by this severe environment. In devising such a business model,
Slide 17: Our medium-term management target
Our medium-term management target Establish a new business model that will enable the Bank to survive the current severe situation Preparing for the next stage of growth together with the regional community Basic Strategy I – Reforming our marketing structure Establish quick-response structure throu
Slide 18: Basic Strategy I – Reforming our marketing structure
Basic Strategy I – Reforming our marketing structure Establish quick-response structure through radical reorganization of work processes; improve ability to pay frequent visits to customers and offer consulting services at our branch offices Streamlining of head office work Radical rethinking of wor
Slide 19: Growth Strategy I – Contribute to regional economic development
Growth Strategy I – Contribute to regional economic development Leverage consulting capabilities to expand business loans to realize Okinawa’s high potential Support for growth Strengthen consulting business • Increase number and value of business loans through support in growth fields such as ¾Iden
Slide 20: Growth Strategy II – Strengthen retail banking and fee-charging services
Growth Strategy II – Strengthen capabilities in marketing retail banking services and fee-charging services Offer optimal retail banking products and services for all customers, from young people (who will be the engine of the economy in the next generation) to elderly customers Strengthen image str
Slide 21: 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 oth