Tochigi Bank, Ltd. · TSE:8550
Tochigi Bank — FY2022 Earnings Presentation
36 slides from Tochigi Bank's earnings presentation, Jun 6, 2023
Slide 1: Financial Results Presentation for the Fiscal Year Ended March 31, 2023
Financial Results Presentation for the Fiscal Year Ended March 31, 2023 (June 6, 2023) 0
Slide 2: Contents
Contents Overview of Financial Results Key Measures in the 11th Medium-term Management Plan Overview of Financial Results P. 3 Basic strategy 1: Strengthen earning power Net Interest Income P. 4 1-1 Business Strategy P. 24 Core Net Business Profit P. 5 1-2 Corporate Customer Strategy P. 25 Deposits
Slide 3: Overview of Financial Results
Overview of Financial Results 2
Slide 4: Overview of Financial Results
Overview of Financial Results (Billion yen) Non-consolidated 2022/3 2023/3 Change % Change Main Points on Non-consolidated Financial Results Gross operating profit 26.9 27.0 +0.1 +0.5% ●Net interest income increased by 3.6 billion yen year on year. This was due to gains from the cancellation of inve
Slide 5: Net Interest Income
Net Interest Income ●Interest on loans and discounts decreased by 100 million yen year on year. (Billion yen) 2022/3 2023/3 Change % Change This was due to lower yields, despite the increase in the average balance Net interest income 25.4 29.0 +3.6 +14.2% of loans and bills discounted, particularly
Slide 6: Core Net Business Profit
Core Net Business Profit (Note 1) Substantial net business profit = Net business profit (before (Billion yen) 2022/3 2023/3 Change % Change provision to general allowance for loan losses) (Note 2) Core net business profit = Substantial net business profit - Substantial net business profit (Note 1) 4
Slide 7: Deposits and CDs
Deposits and CDs ●Tochigi Bank deposits show an increase mainly in personal deposits (Billion yen) 2022/3 2023/3 Change % Change from the locally rooted business base. Deposits as of March 31, 2023 increased by 41.1 billion yen from the end of the previous fiscal year. Deposits and CDs 3,018.3 3,059
Slide 8: Loans and Bills Discounted
Loans and Bills Discounted ●Loans and bills discounted as of March 31, 2023 increased by 76.6 (Billion yen) 2022/3 2023/3 Change % Change billion yen from the end of the previous fiscal year mainly due to an increase in SME and home loans. Loans and bills discounted 1,955.1 2,031.7 +76.6 +3.9% ●Toch
Slide 9: Deposit Assets
Deposit Assets ●The balance of deposit assets as of March 31, 2023 increased by 16.1 (Billion yen) 2022/3 2023/3 Change % Change billion yen from the end of the previous fiscal year, as we have provided customer-oriented financial services, such as proposals for investment Deposit assets 398.3 414.4
Slide 10: Securities
Securities (Billion yen) 2022/3 2023/3 Change % Change ●Valuation losses on other securities expanded due to continued high volatility stemming from forecast fiscal policies in Europe and the U.S. Total securities 606.9 620.6 +13.7 +2.2% and the unstable political climate. The expansion in valuation
Slide 11: Expenses
Expenses ●Expenses are declining due to reduction, streamlining, and concentration (Billion yen) 2022/3 2023/3 Change % Change of business operations in branch offices, and office network restructuring. Total expenses 22.1 21.3 (0.8) (3.6%) ●Expenses in the fiscal year ended March 31, 2023 fell to 2
Slide 12: Loans Based on the Banking Act and Financial Reconstruction Act
Loans Based on the Banking Act and Financial Reconstruction Act ●Loans based on the Banking Act and Financial Reconstruction Act was (Billion yen) 2022/3 2023/3 Change % Change 43.3 billion yen, down 1.1 billion yen year on year, mainly due to a Total loans based on the decrease in doubtful loans. B
Slide 13: Shareholder Returns Policy
Shareholder Returns Policy Shareholder Returns Policy (formulated in May 2022) The Bank’s basic policy is to continue to pay shareholders consistent dividends while working to maintain sound management and enhance internal reserves to earn the trust of our customers and everyone in the local communi
Slide 14: Capital Adequacy Ratio and Consolidated ROE
Capital Adequacy Ratio and Consolidated ROE ●Consolidated capital adequacy ratio for the fiscal year ended March 31, (Billion yen, %) 2022/3 2023/3 Change 2023 was 11.85%, down 0.21 percentage points year on year, due to an Consolidated capital adequacy increase in risk assets including loans and bi
Slide 15: Financial Results Forecast
Financial Results Forecast (Billion yen) Non-consolidated 2023/3 2024/3 Change % Change Main Points of Non-consolidated Forecast Gross operating profit 27.0 27.9 +0.9 +3.4% ●We forecast an increase in interest on loans and discounts, which is an income from our main business. Net interest income 29.
Slide 16: Purpose & Sustainability Management
Purpose & Sustainability Management 15
Slide 17: Establishment of Purpose
Establishment of Purpose Purpose of the Tochigi Bank Group We continue to bring smiles and happiness to our customers’ faces by resolving their problems to earn their gratitude in return. Aspirations of the Group’s Officers and Employees ・ In the midst of drastic changes in the environment surroundi
Slide 18: Establishment of Long-term Vision
Establishment of Long-term Vision A corporate group that Long-term Vision co-creates the future of regional communities through “relationships” and “solutions” The Tochigi Bank Group has established its long-term vision with the following aspirations: “To be the closest to our customers,” “To resolv
Slide 19: Realization of Sustainability Management
Realization of Sustainability Management —Creation of demand by resolving regional issues— Sustainability Policy The Tochigi Bank Group considers environmental and social issues and pursues a virtuous cycle for regional economies through our business activities, based on our management philosophy. W
Slide 20: Overview of the 11th Medium-term Management Plan
Overview of the 11th Medium-term Management Plan 19
Slide 21: Review of the Previous (10th) Medium-term Management Plan
Review of the Previous (10th) Medium-term Management Plan Key Numerical Targets and Results 10th Medium-term Management Plan Item 2020/3 Target in Final Fiscal Year 2021/3 2022/3 2023/3 Profit (Consolidated) ¥1.8 billion ¥2.5 billion or more ¥2.0 billion ¥3.6 billion ¥2.6 billion Core net business p
Slide 22: Overall Image of the 11th Medium-term Management Plan
Overall Image of the 11th Medium-term Management Plan ■We will contribute to the creation of a prosperous regional community and aim to be a reliable bank. Sustainability Policy Management Philosophy ■We will develop as a financially sound bank that can flexibly cope with a new era. ■We will create
Slide 23: The 11th Medium-term Management Plan Numerical Targets
The 11th Medium-term Management Plan Numerical Targets Long-term target for ROE is 5% or higher. Target in Fiscal Year Ended Fiscal Year Ended Item Final Fiscal Year March 31, 2023 March 31, 2020 (ending March 31, 2026) Results Results Profit ¥5.5 billion (Profit attributable to ¥2.6 billion ¥1.8 bi
Slide 24: Key Measures in the 11th Medium-term Management Plan
Key Measures in the 11th Medium-term Management Plan —Key measures based on three basic strategies— 23
Slide 25: 1-1 Business Strategy
Basic strategy 1: Strengthen earning power —Evolution (deepening) of regional financial business and reinforcement of earnings structure— 1-1 Business Strategy —Delivery of “highly specialized solutions” face to face directly and indirectly— With investment for growth and strategic assignment of per
Slide 26: 1-2 Corporate Customer Strategy
Basic strategy 1: Strengthen earning power —Evolution (deepening) of regional financial business and reinforcement of earnings structure— 1-2 Corporate Customer Strategy —Deeper risk-taking and consulting capabilities starting with business feasibility assessments— We will meet the diverse needs and
Slide 27: 1-3 Individual Customer Strategy
Basic strategy 1: Strengthen earning power —Evolution (deepening) of regional financial business and reinforcement of earnings structure— 1-3 Individual Customer Strategy —Total support for life design— In addition to the medium and long-term asset formation support, we will offer consulting service
Slide 28: 1-4 DX Strategy
Basic strategy 1: Strengthen earning power —Evolution (deepening) of regional financial business and reinforcement of earnings structure— 1-4 DX Strategy —Promotion of DX— Key measures Specific initiatives Face-to-face Promoting DX for business customers: Business Direct, Ｍikatano Service, Business
Slide 29: 2-1 Branch Strategy
Basic strategy 2: Strengthen systems —Promotion of structural reforms and reinforcement of management base for the future— 2-1 Branch Strategy —Revamp of the sales system/branch system depending on area characteristics— In order to respond to changes in the market, such as a declining population, an
Slide 30: 2-2 New Business Strategy
Basic strategy 2: Strengthen systems —Promotion of structural reforms and reinforcement of management base for the future— 2-2 New Business Strategy —Enhancement of sustainability promotion system (Creation of new businesses and services)— The deregulation of the Banking Act has made it possible to
Slide 31: 2-3 Sophistication of Risk Management
Basic strategy 2: Strengthen systems —Promotion of structural reforms and reinforcement of management base for the future— 2-3 Sophistication of Risk Management In the face of increasingly complex and diverse risks affecting Restructuring of screening system management, we are strengthening our risk
Slide 32: 2-4 Group Strategy
Basic strategy 2: Strengthen systems —Promotion of structural reforms and reinforcement of management base for the future— 2-4 Group Strategy —Reinforcement of the Group governance— By fully leveraging the solution capabilities of each Group company to resolve customer issues, we will contribute to
Slide 33: 2-5 Capital Strategy and Shareholder Returns Policy
Basic strategy 2: Strengthen systems —Promotion of structural reforms and reinforcement of management base for the future— 2-5 Capital Strategy and Shareholder Returns Policy We will allocate capital in a manner that balances “return to shareholders” and “investment for growth,” while ensuring “fina
Slide 34: 3-1 Human Resource Strategy (1)
Basic strategy 3: Strengthen human capital investment —Foundation of sustainable management— 3-1 Human Resource Strategy (1) —Enhancement of human resource development— Expected type of personnel Personnel who can understand and put into practice important policies (who are strongly committed to con
Slide 35: 3-2 Human Resource Strategy (2)
Basic strategy 3: Strengthen human capital investment —Foundation of sustainable management— 3-2 Human Resource Strategy (2) —Improvement of internal environment, cultivation of the Tochigin mindset and a new organizational culture/climate— Internal Environment to Improve Employee Engagement Initiat
Slide 36: Contact for inquiries on these materials
Contact for inquiries on these materials: Corporate Planning Division: Nakada, Saito, and Iwamoto Tel.: +81-28-633-1455 e-mail: keieikikaku@tochigibank.co.jp