Chugin Financial Group,inc. · TSE:5832
Chugin Financial Group,inc — H1 FY2023 Earnings Presentation
42 slides from Chugin Financial Group,inc's earnings presentation, Dec 4, 2023
Slide 1: 1H FY2023 Earnings Results Briefing
1H FY2023 Earnings Results Briefing December 4, 2023 Our challenges build our future. Chugin Financial Group, Inc.
Slide 2: Today's Key Message
Our challenges build our future. Today’s Key Message Chugin Financial Group, Inc. 1. 1H FY2023 earnings results were favorable and the new Medium-term Management Plan has made a successful start Interim profit attributable to owners of parent was 10.4 billion yen (+ 2.2 billion yen as compared to
Slide 3: Table of Contents
Our challenges build our future. Table of Contents Chugin Financial Group, Inc. I. Earnings Results for 1H FY2023 and II. Initiatives toward Enhancement of Forecasts for FY2023 Corporate Value • Awareness of the Current Situation and • Summary 4 Enhancement of Corporate Value through Consolidated fo
Slide 4: Section I Earnings Results for 1H FY2023 and Forecasts for FY2023
Section I Earnings Results for 1H FY2023 and Forecasts for FY2023 4
Slide 5: Earnings Results – Summary (Consolidated for the FG)
Our challenges build our future. Earnings Results –Summary (Consolidated for the FG)– Chugin Financial Group, Inc. Consolidated financial results for *Forecast published on May 12, 2023 the Chugin Financial Group 1H FY2020 1H FY2021 1H FY2022 1H FY2023 (billion yen) YoY vs. Plan* Consolidated gross
Slide 6: Summary – Status of the Group Companies (Non-consolidated for the Bank)
Our challenges build our future. Summary －Status of the Group Companies (Non-consolidated for the Bank)－ Chugin Financial Group, Inc. Non-consolidated for The Core business net profit Chugoku Bank 1H FY2023 Percentage of progress in Compared to the previous fiscal year, core business net (billion
Slide 7: Summary – Status of the Group Companies (Excluding the Bank)
Our challenges build our future. Summary －Status of the Group Companies (Excluding the Bank)－ Chugin Financial Group, Inc. 1H FY2023 Group companies (billion yen) Ordinary profit YoY Net income YoY Lease 0.18 0.09 0.17 0.11 Card 0.14 -0 0.08 -0.01 Human Innovations (Employment placement) 0 0.01 0 0.
Slide 8: Earnings Forecasts
Our challenges build our future. Earnings Forecasts Chugin Financial Group, Inc. Consolidated for the Chugin Earnings Forecasts FY2023 Financial Group Although the earnings remain high mainly for (billion yen) forecasts YoY Interim percentage of The Chugoku Bank, the full-year earnings progress in f
Slide 9: Section II Initiatives toward Enhancement of Corporate Value
Section II Initiatives toward Enhancement of Corporate Value 9
Slide 10: Awareness of the Current Situation and Enhancement of Corporate Value
Awareness of the Current Situation and Enhancement of Corporate Value through the Medium-term Management Plan Trends and targets for ROE/PBR Introduction of ROE（%） PBR（times） Beyond negative interest rate January 2016 6.4 Current Medium-term The Long-term Management Management Plan: Plan started. 5%
Slide 11: Overview of the Medium-term Management Plan: Three Growth Strategies
Overview of the Medium-term Management Plan: Three Growth Strategies 1 “Deepening” of regional revitalization SDGs Corresponding materiality We will contribute to the “sustainable development of communities” (priority issues) by drawing out its appeal and potential. Revitalization of local economy a
Slide 12: Overview of the Medium-term Management Plan: KPI
Overview of the Medium-term Management Plan: KPI (On a consolidated basis for the FG, unless indicated otherwise) Aim s of the selection Financial KPI FY2022 result 1H FY2023 result FY2026 target Profitability Profit attributable to owners of parent 20.4 billion yen 10.4 billion yen 30.0 billion yen
Slide 13: Initiatives toward Improvement of ROE
Initiatives toward Improvement of ROE Measures to Improve ROE (Net Income/Capital Adequacy) An increase in net interest income through the accumulation of high-quality assets = An increase in interest on loans and discounts Boosting Net Sales on account of interest rate hikes Expansion of cons
Slide 14: Boosting Net Sales – Sustainable Finance and Consulting
Boosting Net Sales －An Increase in Net Interest Income Improvement of ROE through Accumulation of High-Quality Assets－ Net sales Management resources Capital Return Sustainable Finance Improvement of RORA Consulting service menu RORA on loans Local development Urban development Support for realizati
Slide 15: Boosting Net Sales – Accumulation of High-Quality Assets
Boosting Net Sales －An Increase in Net Interest Income Improvement of ROE Net Management Through Accumulation of High-Quality Assets－ sales resources Capital Return Opening of the Singapore Branch and Strengthening of Ship Finance Accumulation of Loans Capturing local demand for funds Purpose (Mediu
Slide 16: Boosting Net Sales – Interest on Loans and Discounts on Account of Rate Hikes
Boosting Net Sales －An Increase in Interest on Loans Improvement of ROE Net Management Capital Return and Discounts on Account of Interest Rate Hikes－ sales resources Impact on Interest on Loans and Discounts Caused by Status of Yen Deposits and Loans Interest Rate Hikes Stable BS structure supporte
Slide 17: Boosting Net Sales – Expansion of Consulting Revenues of the Entire Group
Boosting Net Sales －Expansion of Consulting Improvement of ROE Net Management Revenues of the Entire Group－ sales resources Capital Return An Increase in Consulting Revenues through Collaboration within the Chugin Group People Group collaboration system Chugin Human Innovations More diverse and ■Lea
Slide 18: Boosting Net Sales – Expansion of Business Pillars
Improvement of ROE Boosting Net Sales －Expansion of Business Pillars－ Net Management sales resources Capital Return C Cube Consulting DX Sunrise Okayama Organizations that have specialized insights and know-how on management and ・ The company was newly founded in September 2022 as a digital technolo
Slide 19: Boosting Net Sales – Alliance Strategy
Improvement of ROE Boosting Net Sales －Expansion of Business Pillars－ Net Management sales resources Capital Return Alliance Strategy We aim to co-create new value through active collaboration with various stakeholders, including different industry players. Basic stance Co-creation and promotion o
Slide 20: Optimal Allocation of Management Resources – Acceleration of DX
Optimal Allocation of Management Resources Improvement of ROE Net －Actions Taking into Account the Acceleration of DX－ Management resources Capital Return sales Implement Operational Reforms in All Areas, without Any Exceptions Group-wide Operation volume (in the priority five areas) Assets in custo
Slide 21: Control and Strategic Use of Capital – Risk-taking through the Use of Capital
Control and Strategic Use of Capital －Risk-taking Improvement of ROE through the Use of Capital－ Net sales Management resources Capital Return Control of Consolidated Total Capital Adequacy Ratio Expansion of Equity Investments Consolidated for the FG Chugin Capital Partners Startups Business In
Slide 22: Control and Strategic Use of Capital – Reduction of Cross-shareholdings
Control and Strategic Use of Capital －Reduction Improvement of ROE Net Management of Cross-shareholdings－ sales resources Capital Return We will limit cross-holdings to cases where it is determined necessary for the sustainable growth and Basic Policy enhancement of the corporate value of the Group
Slide 23: Shareholder Returns
Improvement of ROE Shareholder Returns Net Management sales resources Capital Return FY2023 Shareholder Shareholder return ratio of at least 40％ through Return Policy dividends and share buybacks (consolidated) The dividend for FY2023 is planned to be 30 yen (interim dividend and year-end dividend
Slide 24: Initiatives toward Improvement of PER
Initiatives toward Improvement of PER Measures to Improve PER (Aggregate Market Value (Stock Price)/Net Income) = Implementation of corporate philosophy Initiatives that capture the community from a wide perspective (collaboration with municipal governments) Co-creation of a Startup ecosystem
Slide 25: Co-creation of a Prosperous Future – Communities and Customers
Co-creation of a Prosperous Future －Communities Improvement of PER and Customers－ Communities Customers Employees Initiatives that capture the community from a wide DX and Characteristi cs and Co-creation of appealing SX issues of the perspective (collaboration with municipal governments) community
Slide 26: Co-creation of a Prosperous Future – Startup Ecosystem
Co-creation of a Prosperous Future － Improvement of PER Communities and Customers－ Communities Customers Employees Startup ecosystem ・ Support for startups aiming to create companies that represent the communities ・Financial support toward growth Number of newly established companies under the start
Slide 27: Transformation into Next-generation Channels through DX
Co-creation of a Prosperous Future －Communities and Improvement of PER Customers－ Communities Customers Employees Transformation into next-generation channels through DX Introduction to Chugin App Chugin Business Portal 0.5 million 20,000 users Enhancement of customers Enhancement of functions (
Slide 28: Co-creation of a Prosperous Future – Employees
Improvement of PER Co-creation of a Prosperous Future －Employees－ Communities Customers Employees Human capital investments Expand human capital investments in line with our business strategy, such as secondment to external organizations for training 1H FY2023 Investments of money In addition to t
Slide 29: Co-creation of Prosperous Future – Diversity and Inclusion
Improvement of PER Co-creation of Prosperous Future －Employees－ Communities Customers Employees Diversity and inclusion Newly established D&I NEXT10 Promotion of active participation by women Promotion Department Ratio of female managers and supervisors NEXT10 Promotion Office (from Jun. 2015) (
Slide 30: Conclusion: Improvement of ROE and PER
Conclusion Accelerating measures under the Medium-term Management Plan Expanding the use of capital (addition of assets) Yielding results of measures for DX and Improvement of innovations Responding to change in the financial ROE and PER environment Accelerating initiatives for regional revi
Slide 31: III. Appendix Major Numerical Figures
III. Appendix Major Numerical Figures 31
Slide 32: Net Interest Income – Non-consolidated for the Bank
Net Interest Income –Non-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Factors behind change in net interest income] [Loan yield] (%) Loan yield Loan yield (yen) Yen based: 27.3 billion yen Foreign currency-based: ¥3.6 billion 1.41 (-¥2.1 billion YoY)
Slide 33: Net Fee Income – Non-consolidated for the Bank
Our challenges build our future. Net Fee Income –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Net fee income] (million yen) ＋658 9,901 10,000 9,243 8,841 ＋204 2,542 Assets in 2,338 8,000 custody* 2,442 Investment 2,073 6,000 banking business 2,199 1,619 2,006 4,000 Remittance/ 2,189
Slide 34: Corporate Solution-related Revenues – Consolidated for the FG
Our challenges build our future. Corporate Solution-related Revenues –Consolidated for the FG– Chugin Financial Group, Inc. [Corporate solution-related revenues] (unit: million yen) Breakdown of Group -851 companies (million yen) 4,897 *1 A total of gross margin for Lease, and operating revenues fro
Slide 35: Revenues Related to Assets in Custody – Consolidated for the FG
Our challenges build our future. Revenues Related to Assets in Custody –Consolidated for the FG– Chugin Financial Group, Inc. [Breakdown of revenues related to assets in custody] (million yen) +460 （+205） 4,009 3,798 (2,543) Breakdown of Group (2,442) companies (million yen) 3,549 Group total (2,338
Slide 36: Expenses – Non-consolidated for the Bank
Our challenges build our future. Expenses –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Expenses] *Approx. 0.5 billion yen in expenses for personnel who also work (billion yen) for the FG has been transferred to the “business management fee” in other property expenses. 300 30.0 ＋0.7
Slide 37: Credit Costs and Non-performing Loans – Non-consolidated for the Bank
Our challenges build our future. Credit Costs and Non-performing Loans –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Non-performing loans (NPL) (Loans disclosed [Credit costs] (billion yen) under the Financial Revitalization Act)] (billion yen) Provision of specific allowance 個別貸倒引当金
Slide 38: Status of Capital Adequacy – Consolidated for the FG
Our challenges build our future. Status of Capital Adequacy －Consolidated for the FG－ Chugin Financial Group, Inc. [Capital adequacy ratio] [Status of capital adequacy (consolidated for the FG)] (%) FY ended Mar. 1H ended Sep. (billion yen) 2023 2023 Change Consolidated for the FG Total capital adeq
Slide 39: Deposits & Assets in Custody – Non-consolidated for the Bank
Our challenges build our future. Deposits & Assets in Custody –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Average balance of deposits and assets in custody] ＋1.2％ (billion yen) 9,200.8 9,083.4 (8,158.4) Total assets in 8,772.3 (8,086.3) custody (7,776.5) 187.8 9,000 90,000 (Deposit
Slide 40: Loans – Non-consolidated for the Bank
Our challenges build our future. Loans –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Average loan balance] +5.8％ 5,642.2 60,000 6,000 (billion yen) 5,329.4 5,155.8 42.0 30.0 Overseas branches 23.7 +13.7% 857.3 50,000 5,000 753.9 Loans to the 612.9 headquarters*3 421.7 Local governmen
Slide 41: Securities – Non-consolidated for the Bank
Our challenges build our future. Securities –Non-consolidated for the Bank– Chugin Financial Group, Inc. [Unrealized [Average balance of securities] gains/losses] End of Sep. End of Mar. End of Sep. Term-end (billion yen) 2022 2023 2023 comparison (billion yen) Total 44.3 42.4 45.5 3.1 2,438.8 -69.7
Slide 42: Chugin Financial Group, Inc.
Our challenges build our future. Chugin Financial Group, Inc. This material contains forward-looking statements. These statements do not guarantee our future business performance and include risks and uncertainties. It should be noted that future performance may differ from the targets mentioned her
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