77 Bank, Ltd. · TSE:8341
77 Bank — The 77 Bank — H1 FY2011 Earnings Presentation
22 slides from 77 Bank's earnings presentation, December 2010
Slide 1: IR Presentation: Results for the First Half of Fiscal Year Ending March 31, 2011
IR Presentation Results for the First Half of Fiscal Year Ending March 31, 2011
Slide 2: Contents
Contents 1. Results for the first half of FY2011 3. Projected performance for FY2011 Summary of profits and losses ･･･････････ 1 Profits and losses ････････････････････ 16 Major accounts / interest rates / Major accounts / interest rates / interest margin ･･････････････････････････ 2 interest
Slide 3: Summary of profits and losses
1. Results for the first half of FY2011 Summary of profits and losses (JPY bn, %) YoY change First half First half FY2010 FY2011 Increase/ Rate of Interest Interestincome income decrease change % Interest Intereston onloans loansand anddiscounts discounts Gross operating income 39.9 42.1 2.2 5.5 (-J
Slide 4: Major accounts / interest rates / interest margin
1. Results for the first half of FY2011 Major accounts / interest rates / interest margin Major accounts (average balances) Interest rates / interest margin (JPY bn, %) (%) First half First half First half First half YoY YoY change FY2010 FY2011 FY2010 FY2011 change Loans and bills discounted 3,
Slide 5: Credit-related expenses and credit disclosed under the Financial Reconstruction Law
1. Results for the first half of FY2011 Credit-related expenses and credit disclosed under the Financial Reconstruction Law Credit-related expenses (JPY bn) Credits disclosed under the Financial Reconstruction Law First First (JPY bn) FY2011 (%) FY2007 FY2008 FY2009 half FY2010 half Plan FY2010 FY
Slide 6: Securities (1)
1. Results for the first half of FY2011 Securities (1) Balance of securities (JPY bn) Gains (losses) from revaluation of securities (JPY bn) Gains End of Sep. Change from 100.0 National gov. bonds Local gov. bonds (losses) from 2010 Mar. 2010 Corporate bonds, Stocks revaluation 44.6 Short-term cor
Slide 7: Securities (2)
1. Results for the first half of FY2011 Securities (2) Securities portfolio (%) Composition of written-off securities (JPY bn) (JPY bn) 40.0 (at the end of Sep. 2010) 2,500.0 National gov. bonds Local gov. bonds Corporate bonds Stocks Others 500.0 25.4% Others Rate of flotation Corporate bonds 27.5%
Slide 8: Capital adequacy
1. Results for the first half of FY2011 Capital adequacy Management of risk capital (at the end of Sep. 2010) At the end of Sep. 2010 Non-consolidated capital adequacy ratio Tier I (JPY bn) 13. 13.09% (Change from End-Mar. 2010: +0.05) 315.3 Tier I ratio 12.50% (Change from End-Mar. 2010: ±0) 12.5
Slide 9: Enhance operating capabilities (1)
2. Major management policies Enhance operating capabilities Further enhance total deposits, loans and assets in custody (1) Loans (term-end balance) ◆ Increase corporate loans (JPY bn) Survey of situation regarding the main banks used by enterprises in Miyagi Prefecture 3,600.0 < 22,108 enterprise
Slide 10: Enhance operating capabilities (2)
2. Major management policies Enhance operating capabilities Further enhance total deposits, loans and assets in custody (2) Increasing housing loan balance (JPY bn) Balance of housing loans Growing balance of housing loans amid persistently sluggish housing starts 700.0 • Strengthen relationships
Slide 11: Enhance operating capabilities (3)
2. Major management policies Enhance operating capabilities Further enhance total deposits, loans and assets in custody (3) Change in sales amount of investment trusts (JPY bn) and individual annuity insurance ◆ Enhance assets in custody Investment trusts Strengthen support by Intra-prefecture ban
Slide 12: Enhance operating capabilities: promotion structure and customer relationships
2. Major management policies Enhance operating capabilities Boost the promotion structure Upgrade relationships Strengthen solution sales by significantly expanding the number of Relationship Managers (RMs) Strengthen relationships with customers RM personnel expansion plan (150 by March 31,
Slide 13: Improve productivity
2. Major management policies Improve productivity Continue cost reduction Core OHR Personnel Non-personnel Tax Core OHR Core gross operating Implement the reduction measures formulated by the (JPY bn) expenses expenses income (%) Expenditure Reduction Project Team (July 2009 to March 2010) 67.0 66
Slide 14: Contribute to regional economic growth: Miyagi economic environment
2. Major management policies Contribute to regional economic growth ■ Economic environment of Miyagi Prefecture Major economic indicators of Miyagi Pref. Dec. 4 Tohoku Shinkansen services extended to Aomori Aomori Sendai ⇔ Aomori Fastest train: 1 hr. 32 mn. Amount Share Rank Akita Population 2,329,0
Slide 15: Increased efforts concerning companies newly operating in Miyagi
2. Major management policies Contribute to regional economic growth ■ Increased efforts by Miyagi Prefecture concerning companies newly operating in the prefecture Economic ripple effects within Miyagi Job creation effects <The 77 Bank estimate> < Miyagi Pref. Pref. Govt. Govt. survey > The plants o
Slide 16: Promotion of locally-focused financial services
2. Major management policies Contribute to regional economic growth Promotion of locally-focused financial services Boost the support for local companies for Asia business Business matching Local companies’ growing interest in Asia •Provide matching opportunities by holding Approx. Approx. 270 ov
Slide 17: Promotion of financial facilitation, and other policies
2. Major management policies Promotion of financial facilitation, and other policies Promotion of financial facilitation Contribution to local community Promotion of financial facilitation Efforts to let customers use our services with peace of mind • Cumulative total as of the end of Sep. 2010
Slide 18: Projected profits and losses for FY2011
3. Projected performance for FY2011 Profits and losses (JPY bn) FY2010 FY2011 Results YoY change Plan YoY change Gross operating income 77.8 (0.2) 81.9 4.1 [Core gross operating income] [ 82.0] [ (4.0)] [ 82.8] [ 0.8] Interest income 71.7 (4.5) 72.7 1.0 Fees and commissions 9.7 0.4 9.7 0.0 Gains (lo
Slide 19: Major accounts / interest rates / interest margin
3. Projected performance for FY2011 Major accounts / interest rates / interest margin (JPY bn, %) FY2010 FY2011 Results YoY change Plan YoY change Loans and bills discounted 3,429.3 5.2 3,464.2 1.0 Major accounts (average Securities 1,794.5 (7.1) 2,114.2 17.8 balances) Deposits and certificates of d
Slide 20: Progress of the Medium-term Management Plan (1)
4. Progress in implementing the Medium-term Management Plan Progress of the Medium-term Management Plan (1) (Figures to be planned and reviewed annually) I. Average balance of major accounts (JPY bn) (Reference) Forecast when the Medium-term Management Plan started FY2010 First half FY2011 plan resu
Slide 21: Progress of the Medium-term Management Plan (2)
4. Progress in implementing the Medium-term Management Plan Progress of the Medium-term Management Plan (2) (Figures to be planned and reviewed annually) III. Profits and losses (JPY bn, %) (Reference) Forecast at the beginning of the Medium-term Management Plan FY2010 FY2011 result First half plan
Slide 22: Translation and projections notice
This is a Japanese-English translation of the presentation material for your convenience. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct. Please note that the projections described in this document do not guarantee f