Nishi-nippon Financial Holdings, Inc. · TSE:7189
Nishi-nippon Financial — Q2 FY2024 Earnings Presentation
52 slides from Nishi-nippon Financial's earnings presentation, Nov 29, 2024
Slide 1: Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2025
Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2025 November 29, 2024 Nishi-Nippon Financial Holdings, Inc.
Slide 2: Today's Agenda
Today’s Agenda Reference Materials Page Page I. Financial Results 2 Economic Environment in Kyushu/Fukuoka 36–39 1. Overview of Financial Results 3 2. Net Interest Income 4 Supplementary Materials on Performance 41 (Appendix) Impact of Rising Yen Interest Rates on Earnings 5 1. Statement of Income 4
Slide 3: I. Financial Results
I. Financial Results I. Financial Results Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2025 P.2
Slide 4: 1. Overview of Financial Results
1. Overview of Financial Results Profit attributable to owners of parent increased by 1.0 billion yen year-on-year (YoY) to 16.4 billion yen, mainly due to an increase in interest on loans and discounts and a decrease in interest on foreign currency funding. Six months Six months Six months ended
Slide 5: 2. Net Interest Income
2. Net Interest Income Net interest income for the six months ended September 30, 2024 increased by 6.3 billion yen YoY to 50.6 billion yen, due mainly to increases in interest on loans and discounts and interest on deposits with banks and a decrease in interest on foreign currency funding. Net
Slide 6: Impact of Rising Yen Interest Rates on Earnings
<Appendix> Impact of Rising Yen Interest Rates on Earnings The rise in market interest rates is expected to have a positive impact on our performance, mainly through the expansion of the loan-to-deposit spread. - Approximately 60% of the Nishi-Nippon City Bank’s loans and discounts are floating in
Slide 7: Interest on Loans and Discounts (NCB)
2. Net Interest Income (1) Interest on Loans and Discounts (NCB) Interest on loans and discounts for the six months ended September 30, 2024 increased by 2.6 billion yen YoY to 42.0 billion yen on the back of a rise in yield and solid growth of business loans and personal loans. Interest on loan
Slide 8: Interest on Deposits and Negotiable Certificates of Deposit (NCB)
2. Net Interest Income (2) Interest on Deposits and Negotiable Certificates of Deposit (NCB) Interest on deposits and negotiable certificates of deposit for the six months ended September 30, 2024 increased by 1.4 billion yen YoY to 1.7 billion yen, driven by a rise in yield due to increasing depo
Slide 9: Interest and Dividends on Securities (NCB)
2. Net Interest Income (3) Interest and Dividends on Securities (NCB) Interest and dividends on securities for the six months ended September 30, 2024 increased by 1.7 billion yen YoY to 15.2 billion yen, mainly due to an increase in gains on investment trust cancellations. Interest and dividend
Slide 10: 3. Fees and Commissions
3. Fees and Commissions Fees and commissions for the six months ended September 30, 2024 decreased by 0.6 billion yen YoY to 12.0 billion yen, mainly due to a decline in corporate customer-related fee income* while client assets-related fee income grew steadily. (* mainly due to the absence of fee
Slide 11: 4. Expenses
4. Expenses Expenses for the six months ended September 30, 2024 rose by 0.8 billion yen YoY to 41.0 billion yen, due mainly to pay raises and an increase in system-related expenses. Expenses for the fiscal year ending March 31, 2025 are expected to rise by 2.9 billion yen YoY to 83.1 billion ye
Slide 12: 5. Credit Cost
5. Credit Cost Credit cost for the six months ended September 30, 2024 remained almost flat YoY at 2.1 billion yen. While outstanding loans and discounts grew, the ratio of credit cost and the ratio of non-performing loans remained at low levels. Credit cost for the fiscal year ending March 31,
Slide 13: 6. Financial Results Forecast
6. Financial Results Forecast Profit attributable to owners of parent for the year ending March 31, 2025 is expected to increase by 3.4 billion yen YoY to 27.0 billion yen, mainly due to an increase in net interest income resulting from the improved balance of net interest and a decrease in intere
Slide 14: II. Management Strategies - Initiatives to Enhance Corporate Value
II. Management Strategies - Initiatives to Enhance Corporate Value - II. Management Strategies Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2025 P.13
Slide 15: Local Market Environment in Kyushu/Fukuoka
1. Local Market Environment in Kyushu/Fukuoka Strong economies of Fukuoka and other areas in the Kyushu Region (Kyushu/Fukuoka), the NNFH Group’s main market, where a series of large-scale urban redevelopment projects and the accumulation of industries centering on semiconductors are ongoing, lead
Slide 16: Economic Outlook in Kyushu
1. Local Market Environment in Kyushu/Fukuoka (1) Economic Outlook in Kyushu Kyushu’s economy is expected to grow at a level exceeding the national average growth for four consecutive years, driven by an increase in capital investments centered on semiconductor-related industries. ■ Kyushu’s econo
Slide 17: Potentials of Fukuoka Prefecture and Fukuoka City
1. Local Market Environment in Kyushu/Fukuoka (2) Potentials of Fukuoka Prefecture/Fukuoka City Population decline in Fukuoka Prefecture, where our Head Office is located, is moderate compared to the national average as the population in Fukuoka City is expected to grow for some time to come on th
Slide 18: Development Trend in Fukuoka City and Its Vicinity
1. Local Market Environment in Kyushu/Fukuoka (3) Development Trend in Fukuoka City and its Vicinity In addition to large-scale redevelopment projects in the central part of Fukuoka City, development projects for housing and logistics facilities are progressing in the vicinity of Fukuoka City on t
Slide 19: Update on Semiconductor-related Investments
1. Local Market Environment in Kyushu/Fukuoka (4) Update on Semiconductor-related Investments Companies around the world are proactively making capital investments for semiconductor-related facilities in many prefectures in Kyushu, most notably Taiwan Semiconductor Manufacturing Company Limited (T
Slide 20: 2. Initiatives to Enhance Corporate Value
2. Initiatives to Enhance Corporate Value While improving ROE through steady implementation of the measures under the Medium-Term Business Plan, we aim to increase PER through continuous disclosures of the status of each initiative, among other metrics, and dialogues with investors, thus enhancing
Slide 21: PBR, ROE, and Stock Prices
<Appendix> PBR, ROE, and Stock Prices ■ PBR ■ Consolidated ROE After remaining very muted, PBR began Shareholders’ equity basis rising but is yet to reach the level of 1.0 12.0% 0.60 Net asset basis Aiming at a level above capital cost over 資本コストを上回る水準を中⾧期的に目指す 10.0% the medium- to long-term 0.49 0.
Slide 22: Providing Customer-Oriented Solutions: Corporate Customers
3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers Provide financial and non-financial solutions tailored to each corporate customer’s needs, which are becoming increasingly diverse and sophisticated. Increasingly diverse and sophisticated Credit issues and needs of corp
Slide 23: Corporate Customers: Diverse Fundraising Methods
3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers Provide diverse fundraising methods that meet customers’ individual needs using structured finance, funds, and other instruments. Initiatives for structured finance Utilization of funds Offering a diverse menu of struc
Slide 24: Corporate Customers: Digitalization/DX and HR Support
3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers Provide a diverse range of solutions that address immediate managerial issues of many corporate customers, including “digitalization/DX” and “recruitment.” Support for digitalization/DX Human resource-related support N
Slide 25: Providing Customer-Oriented Solutions: Retail Customers
3. Providing Customer-Oriented “One to One Solutions” (2) Retail Customers Provide optimal solutions for each customer by practicing customer-oriented business operation and consulting on all assets and liabilities for a broad range of customers. Consulting on a full range of assets and liabilitie
Slide 26: Retail Customers: Asset Building and Wealthy Individuals
3. Providing Customer-Oriented “One to One Solutions” (2) Retail Customers Provide optimal solutions for every stage of customers’ lives by proposing asset-building options, starting with NISA, along with various loan products. Consulting on asset building Provision of solutions for wealthy indivi
Slide 27: 4. Sales Reform (1) Strengthening the Sales System
4. Sales Reform (1) Strengthening the Sales System With a strengthened HQ support system, HQ and branch offices work together as one to accelerate the provision of solutions to customers Meanwhile, Group companies are making greater contributions to the consolidated results thanks to the impleme
Slide 28: 4. Sales Reform (2) Digital Strategy
4. Sales Reform (2) Digital Strategy The user count for digital channels among corporate and retail users is steadily rising, with transactions via these channels also increasing. These digital channels are assuming greater importance as key customer contact points. The Nishi-Nippon City Bank App,
Slide 29: 4. Sales Reform (3) Work Reform
4. Sales Reform (3) Work Reform Continue initiatives for increasing operational efficiency to enhance productivity of the entire Group Began introducing the next-generation branch system in July, which is designed to fundamentally reduce branch administration, thus transforming branch offices in
Slide 30: 5. Human Resources Reform (1) HR Development
5. Human Resources Reform (1) HR Development Strongly support the growth of each employee by developing strategic human resources to lead the Group’s future in consulting, DX, planning, etc., and expanding job class / business operation-based training and re-skilling training Developing strategic
Slide 31: 5. Human Resources Reform (2) Greater Job Satisfaction
5. Human Resources Reform (2) Greater Job Satisfaction Build a corporate culture that promotes advancement of diverse human resources by establishing an environment that improves job satisfaction through a review of treatment of employees, HQ building reconstruction / branch office renovations, pr
Slide 32: 6. Sustainability Initiatives
6. Sustainability Initiatives Contribute to the realization of a sustainable society by bolstering SDGs/ESG initiatives via means only available to a regional financial group Supporting customers’ initiatives Our initiatives ■ Amount of sustainable finance executed (two banks combined) ■ CO₂ emiss
Slide 33: 7. Capital Policy (1) Basic Approaches
7. Capital Policy (1) Basic Approaches Actively make forward-looking growth investments while securing sufficient levels of capital for sustainable growth and improvement of the corporate value of the NNFH Group; at the same time, increase returns of profits to shareholders and investors Drive gro
Slide 34: 7. Capital Policy (2) Shareholder Returns
7. Capital Policy (2) Shareholder Returns Increased the forecast for the year-end dividend per share from 30 to 35 yen, raising the annual dividend per share from 60 to 65 yen (increase for a fourth consecutive year). Also set a 2.0 billion yen quota for share buybacks. Shareholder returns policy
Slide 35: 7. Capital Policy (3) Reduction of Strategic Shares
7. Capital Policy (2) Reduction of Strategic Shares The ratio of strategic shares to consolidated net assets lowered to 19.3% as of September 30, 2024. Continue reviewing whether it is appropriate to keep holding each issue and consider reduction. ■ Balance of strategic shares, number of issues,
Slide 36: The Economic Environment in Kyushu/Fukuoka
The Economic Environment in Kyushu/Fukuoka Ref. The Economic Environment in Kyushu/Fukuoka Financial Results for the Second Quarter of2025年3月期 the Fiscal Year第2四半期 決算説明会 Ending March 31, 2025 P.35 P.35
Slide 37: 1. Key Economic Indicators
1. Key Economic Indicators (Million yen) <Import/export of the Kyushu economic zone> <Mining/manufacturing production, shipment, and inventory in Kyushu> 1,400,000 120 Export Import Production Shipment Inventory 1,200,000 110 1,000,000 800,000 100 600,000 90 400,000 80 200,000 0 (Seasonally adjusted
Slide 38: 2. Trends in Local Economies
2. Trends in Local Economies (1) Business sentiment among local enterprises • The business survey index for Northern Kyushu in the July- <Business Survey Index> (Difference of “up” – “down” compared to previous quarter) Apr.–Jun. Jul.–Sep. Oct.–Dec. Jan.–Mar. September 2024 quarter showed a narrower
Slide 39: 2. Trends in Local Economies (3) Trends in key industries
2. Trends in Local Economies (3) Trends in key industries (Automobiles) <Auto production volume in Kyushu and its share in the country> The automobile industry in Kyushu has grown steadily as one assembly plant after (10,000 units) (%) 18 20.0 another opened and a cluster of auto-related companies
Slide 40: MEMO
MEMO Financial Results for the Second Quarter of 2025年3月期 the Fiscal Year第2四半期 決算説明会 Ending March 31, 2025 P.39 P.39
Slide 41: Supplementary Materials on Performance
Supplementary Materials on Performance Ref. Supplementary Materials on Performance Financial Results for the Second Quarter of 2025年3月期 the Fiscal Year第2四半期 決算説明会 Ending March 31, 2025 P.40 P.40
Slide 42: Statement of Income (1) Six Months Ended September 2024
1. Statement of Income (1) Six Months Ended September 2024 – YoY Comparisons Six months ended September 30, 2024 Six months ended September 30, 2023 Results YoY change Results (100 million yen) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) Ordinary income 949 810 139 36
Slide 43: Statement of Income (2) Forecast for FY Ending March 2025
1. Statement of Income (2) Forecast for the Fiscal Year Ending March 31, 2025 – YoY Comparisons Fiscal year ending March 31, 2025 Fiscal year ended March 31, 2024 Full-year forecast YoY change Results (100 million yen) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) Ordina
Slide 44: Statement of Income (3) Comparison with Initial Forecast
1. Statement of Income (3) Forecast for the Fiscal Year Ending March 31, 2025 – Comparisons with the Initial Forecast Fiscal year ending March 31, 2025 Fiscal year ending March 31, 2025 Full-year forecast Comparison with initial forecast Full-year initial forecast (Briefings on May 24) (100 million
Slide 45: 2. Balance Sheet (1) Assets
2. Balance Sheet (1) Assets NNFH (Consolidated) NCB (Non-consolidated) (100 million yen) Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Sep. 30, 2024 Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Sep. 30, 2024 Assets Cash and due from banks 17,388 26,147 19,466 22,006 19,810 17,10
Slide 46: 2. Balance Sheet (2) Liabilities and Net Assets
2. Balance Sheet (2) Liabilities and Net Assets NNFH (Consolidated) NCB (Non-consolidated) (100 million yen) Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Sep. 30, 2024 Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Sep. 30, 2024 Liabilities and Net Assets Deposits 92,955 95,703 9
Slide 47: Average Amount Outstanding, Yield, and Interest of Main Accounts (Interim)
3. Average Amount Outstanding, Yield, and Interest of Main Accounts (Interim) (NCB) (Six months ended) (100 million yen) September 30, 2020 September 30, 2021 September 30, 2022 September 30, 2023 September 30, 2024 Ave. amount Ave. amount Ave. amount Ave. amount Ave. amount outstanding Yields Inter
Slide 48: Average Amount Outstanding, Yield, and Interest of Main Accounts (NCB)
3. Average Amount Outstanding, Yield, and Interest of Main Accounts (NCB) (Six months ended) Forecast (100 million yen) March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024 March 31, 2025 Ave. amount Ave. amount Ave. amount Ave. amount Ave. amount outstanding Yields Interest outstanding Yield
Slide 49: Balance and Valuation Gains or Losses of Securities (NCB)
4. Balance and Valuation Gains or Losses of Securities (NCB) September 30, (100 million yen) March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024 2024 ■ Balance sheet amount Government bonds 2,125 3,655 5,006 4,959 4,440 3,965 Local government bonds 2,611 3,321 4,007 4,219 4,79
Slide 50: 5. Breakdown of Credit Cost by Cause (NCB)
5. Breakdown of Credit Cost by Cause (NCB) (Six months ended) (Fiscal year ended) (100 million yen) Sep. 30, Sep. 30, Sep. 30, Sep. 30, Sep. 30, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Provision for general reserve for possible loan losses (Reve
Slide 51: 6. Capital Adequacy Ratio (Consolidated)
6. Capital Adequacy Ratio (Consolidated) vs. Mar. 31, Sep. 30, 2024 2024 Mar. 31, 2024 (100 million yen) Core capital: instruments and reserves A 5,141 138 5,003 Directly issued qualifying common share capital 5,117 136 4,981 Accumulated other comprehensive income (10) 4 (14) Adjusted noncontrolling
Slide 52: Nishi-Nippon Financial Holdings, Inc.
These materials have been prepared for the sole purpose of information provision, and do not constitute an invitation or solicitation to purchase or sell any specific securities. Any and all information described herein is subject to change or amendment without notice. These materials contain
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