77 Bank, Ltd. · TSE:8341
77 Bank — The 77 Bank — FY2012 Earnings Presentation
27 slides from 77 Bank's earnings presentation, Jun 5, 2012
Slide 1: IR Presentation: Results for Fiscal Year Ended March 31, 2012
IR Presentation Results for Fiscal Year Ended March 31, 2012 June 5, 2012 Materials were prepared for the Bank’s presentation of its results for the fiscal year ended March 31, 2012 held on June 5, 2012.
Slide 2: Contents
Contents 1. Current state of Miyagi Prefecture 3. Results of the Previous Medium-term Management Plan ○Activities toward Reconstruction at 15 coastal towns ○Results of the previous Medium-term Management Plan: and cities in Miyagi 1 “SSS Improvement Plan (Apr. 2009 – Mar. 2012) 8 2. Results for FY20
Slide 3: Current state of Miyagi Prefecture: reconstruction at 15 coastal towns and cities
1. Current state of Miyagi Prefecture Activities toward reconstruction at 15 coastal towns and cities in Miyagi 15 coastal towns and cities: Finalized reconstruction plan <Overview of the reconstruction plan of 15 coastal towns and cities> (JPY bn) ⇒ Full-fledged implementation of the plan going for
Slide 4: Summary of profits and losses
2. Results for FY2012 Summary of profits and losses (JPY bn, %) YoY change FY2011 FY2012 Increase/ Rate of decrease change % Gross operating income 83.0 82.0 (1.0) (1.1) Interest income [Core gross operating income] [ 82.6] [ 82.1] [ (0.5)] [ (0.6)] Decreased because of a fall in interest on loans I
Slide 5: Major accounts / Interest rates / Interest margin
2. Results for FY2012 Major accounts / Interest rates / Interest margin ■ Major accounts (average balances) (JPY bn, %) ■ Interest rates / Interest margin (%) FY2011 FY2012 YoY change FY2011 FY2012 YoY change Loans and bills discounted 3,455.5 3,525.8 2.0 Loans and bills discounted Corporate loans 1
Slide 6: Credit-related expenses and credits disclosed under the Financial Reconstruction Law
2. Results for FY2012 Credit-related expenses and credits disclosed under破産更生債権及びこれらに準ずる債権 the Financial Reconstruction Law 危険債権 ■Credit-related expenses (JPY bn) 要管理債権 <Credits disclosed under the Financial Reconstruction Law> FY2011 FY2012 金融再生法開示債権比率 (%) 8 Provision of general reserve for possibl
Slide 7: Capital adequacy
2. Results for FY2012 Capital adequacy <Capital adequacy ratio> <Management of risk capital> (JPY bn) ○As of the end of Mar. 2012 2H FY2012 1H FY2013 Capital adequacy ratio (non-consolidated): 12.33% Vs. end of Mar. 2011 +0.89 Deferred tax assets Tier I 283.1 Tier I 275.4 Impact attributable to publ
Slide 8: Securities (1)
2. Results for FY2012 Securities (1) ■Balance of securities (JPY bn) < Gains (losses) from valuation of securities > (JPY bn) National gov. bonds Local gov. bonds Gains (losses) 100.0 68.5 Corporate bonds, Short- Stocks End of Mar. Change from from term corporate bonds Others 2012 Mar. 31, 2011 reva
Slide 9: Securities (2)
2. Results for FY2012 Securities (2) <Composition of securities> ■ Diverse and efficient investment in securities <<Balance by maturity period>> (JPY bn) ◆Improve profitability and investment efficiency 1,000.0 Secure stable profits through asset portfolio diversification Others Maintain and improvi
Slide 10: Results of the Previous Medium-term Management Plan
3. Results of the Previous Medium- Medium term Management Plan Results of the previous Medium-term Management Plan: “SSS Improvement Plan (Apr. 2009 – Mar. 2012) ■Results against basic objectives stipulated under the previous Medium-term Management Plan: SSS Improvement Plan Achieved two of the four
Slide 11: Business environment / Challenges for management
4. Overview of the Medium-term Management Plan Business environment / Challenges for management 1. Business environment 2. Ideal scenario 3. Pending issues (1) Economic and social environment (1) Four key criteria of management (1) Widespread uncertainty surrounding ・Ongoing steps to rebuild both so
Slide 12: Overview of the Medium-term Management Plan: POWER for the Future
4. Overview of the Medium-term Management Plan Overview of the Medium-term Management Plan: “POWER for the Future” — 36 Months of Renewal and Growth — ■Bank Image Sought by The 77 Bank “Best creative bank” that creates a new era together with the region ■Name Medium-term Management Plan: “POWER for
Slide 13: Positioning of the Medium-term Management Plan with an eye to the future
4. Overview of the Medium-term Management Plan Positioning of the Medium-term Management Plan with an eye to the future Current status and pending issues A revitalized Miyagi and Medium-term Management Plan a new Tohoku era Creative reconstruction of the regional Earthquake ○ Attract a concentration
Slide 14: Basic objectives
4. Overview of the Medium-term Management Plan Basic objectives 1. Balance of retail loans and bills Result (Fiscal year end, JPY bn) Objective FY2010 FY2011 FY2012 As of Mar 31. 2015 (final year of the Plan) discounted *1 2,070.9 2,084.4 2,093.3 JPY 2.15 trillion or more Balance of retail loans and
Slide 15: Priority measures: earthquake disaster-related loan performance
4. Overview of the Medium-term Management Plan Priority measures 1 (Support earthquake recovery and revitalize the regional economy) Fulfill the Bank’s financial intermediation function ■Earthquake disaster-related loan performance (to March 31, 2012) ■Diversify methods with respect to the provision
Slide 16: Priority measures: business rehabilitation and management improvement support
4. Overview of the Medium-term Management Plan Priority measures 1 (Support earthquake recovery and revitalize the regional economy) Strengthen business rehabilitation and management improvement support for customers ■ Status of customers [Facilitation of financing] (Overlapping loans) [Loans for af
Slide 17: Priority measures: contribute to regional reconstruction and development
4. Overview of the Medium-term Management Plan Priority measures 1 (Support earthquake recovery and revitalize the regional economy) Contribute to regional reconstruction and development (Boost the support for local companies) ○Strengthen activities in growth fields ○Support for local companies for
Slide 18: Priority measures: expand investment in human resource development
4. Overview of the Medium-term Management Plan Priority measures 2 (Strengthen loan and consulting capabilities) Expand investment in human resource development [Achievements under the previous [Plan during the period of Medium-term Management Plan] the Medium-term Management Plan] ○Increase in the
Slide 19: Priority measures: increase loan balance and expand customer base (1)
4. Overview of the Medium-term Management Plan Priority measures 2 (Strengthen loan and consulting capabilities) Increase the balance of loans and bills discounted and expand the Bank’s customer base (1) ■ Promote an increase in the balance of loans and bills discounted ■ Enhance housing loans ○ Imp
Slide 20: Priority measures: increase loan balance and expand customer base (2)
4. Overview of the Medium-term Management Plan Priority measures 2 (Strengthen loan and consulting capabilities) Increase the balance of loans and bills discounted and expand the Bank’s customer base (1) ■Efforts for companies new to Miyagi and Tohoku ■Promote growth in the assets in custody base <R
Slide 21: Priority measures: further improve productivity
4. Overview of the Medium-term Management Plan Priority measures 3 (Further improve productivity) ■Adhere strictly to a policy of low-cost operations ○ Reduce administrative operations and operation ○Review head office operational ○Enhance the ability to carry out business tasks branches through con
Slide 22: Priority measures 4: continue to develop the financial services platform
4. Overview of the Medium-term Management Plan Priority measures 4 (Continue to develop the financial services platform) <Strengthen the Bank’s ability to address the needs <Improve the branch and sales systems> of the elderly and young people> ○ Improve the branch network ○Strengthen efforts to att
Slide 23: Reference: Numerical plan (balances)
4. Overview of the Medium-term Management Plan <Reference> Numerical plan (numerical plans are formulated and reviewed each fiscal year) I. Average balances of major accounts (JPY bn, %) FY2012 FY2013 FY2014 FY2015 Vs. FY2012 result plan forecast forecast Change Change (%) Loans and bills discounted
Slide 24: Reference: Numerical plan (profits and losses)
4. Overview of the Medium-term Management Plan <Reference> Numerical plan (numerical plans are formulated and reviewed each fiscal year) III. Profits and losses (JPY bn , %) FY2012 FY2013 FY2014 FY2015 result plan forecast forecast Change from FY2012 Core gross operating income 82.1 80.5 81.8 84.6 2
Slide 25: Projected performance for FY2013: Profits and losses
5. Projected performance for FY2013 Profits and losses (JPY bn) FY2012 FY2013 result YoY change plan YoY change Gross operating income 82.0 (1.0) 80.0 (2.0) [Core gross operating income] [ 82.1] [ (0.5)] [ 80.5] [ (1.6)] Interest income 72.5 (0.6) 71.3 (1.2) Fees and commissions 9.5 0.3 9.2 (0.3) Ga
Slide 26: Major accounts / Interest rates / Interest margin
5. Projected performance for FY2013 Major accounts / Interest rates / Interest margin (JPY bn, %) FY2012 FY2013 results plan YoY change YoY change Loans and bills discounted 3,525.8 2.0 3,575.0 1.4 Major accounts Securities 2,537.0 24.0 2,939.7 15.9 (average balances) Deposits and certificates of de
Slide 27: 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