Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — H1 FY2024 Earnings Presentation
51 slides from Bank Of The Ryukyus,limited's earnings presentation, November 2024
Slide 1: Investor Presentation: Financial Results for the Six Months Ended September 30, 2024
Investor Presentation Financial Results for the Six Months Ended September 30, 2024 Received the Design Award in the General Category of the 33rd (Fiscal 2024) Ryugin Bingata Design Contest “Morning Wake Up” by Ayumi Sakimura
Slide 2: Contents
Contents 1 ■ Financial Results for the Six Months 2 ■ Progress of Initiatives to Enhance 3 ■ Progress of the Medium-Term Management Plan Ended September 30, 2024 Corporate Value Overview of the Medium-Term Management Plan ････36 Economic Overview of Okinawa Prefecture ････4 Current Situation and Fut
Slide 3: Financial Results for the Six Months Ended September 30, 2024
Financial Results for the Six Months Ended September 30, 2024 3
Slide 4: Economic Overview of Okinawa Prefecture
Economic Overview of Okinawa Prefecture The Okinawa economy as a whole is recovering steadily and is expected to trend toward expansion, driven by tourism demand and other factors. Business Conditions DI (Favorable/Unfavorable) 42 Economic Overview Okinawa Prefecture 40 Nationwide 39 35 According to
Slide 5: Financial Summary
Financial Summary Consolidated and non-consolidated income increased while profit decreased. (100 million yen) Six months ended Bank of Ryukyu Lease RYUCOM OCS Ryugin DC Ryugin Hosho September 30, 2024 the Ryukyus [Consolidated] Year on Year on Year on Year on Year on Year on Year on Year Year Year
Slide 6: Summary of Profit/Loss Trends
Summary of Profit/Loss Trends (Million yen) Sep. 2020 Sep. 2021 Sep. 2022 Sep. 2023 Sep. 2024 Year on(Million Yearyen) Profit from customer services*1 1,617 2,409 2,655 2,055 2,291 236 Deposit and loan balance*2 11,530 11,563 11,334 11,214 11,284 69 Profit from service charges*3 2,777 3,129 3,439 3,
Slide 7: Profit/Loss for the Six Months Ended September 30, 2024
Profit/Loss for the Six Months Ended September 30, 2024 While profits increased in the Trading Division and from customer services, net income decreased due to higher credit costs resulting from the reactionary decline in reversal of provision for doubtful accounts. (100 million yen) Net Income Fact
Slide 8: Profit from Customer Services
Profit from Customer Services While expenses rose, especially labor costs, profit from service charges and deposit and loan balance increased, resulting in increased profit from customer services. Profit from Customer Services Factors Behind Year-on-year Increases Expenses Profit from service charge
Slide 9: Profit from Customer Services - Deposits
Profit from Customer Services - Deposits Deposit and other balances increased year on year due to increased deposits for both corporations and individuals. Interest on deposits also increased in line with higher interest rates. Deposit and Other Balances Interest on Deposits, etc. Individual Corpora
Slide 10: Profit from Customer Services - Loans (1)
Profit from Customer Services - Loans (1) Loan balance increased year on year mainly for corporations, individuals, and syndicated loans. Loan interest income also increased, mainly due to the higher loan balance. Loan Balance Loan Interest Rate Syndicated loans (%) Loans to local gov'ts, others (ex
Slide 11: Profit from Customer Services - Loans (2) (Status of Loans by Use)
Profit from Customer Services - Loans (2) (Status of Loans by Use) Balances increased year on year for all purposes except for “loans to local governments and others” (in particular, syndicated loans increased significantly). Yields increased on “loans to rental housing and real estate businesses,”
Slide 12: Profit from Customer Services - Profit from Service Charges
Profit from Customer Services - Profit from Service Charges Increased in all categories, including the three key businesses (corporate and individual consulting services, cashless business). Trends in Profit from Service Charges (Excluding Group Credit Life Insurance Premiums and Loan Guarantee Fees
Slide 13: Profit from Customer Services - Expenses
Profit from Customer Services - Expenses Expenses increased due to higher labor costs associated with the base pay hike. Expenses Non-personnel Expenses (1) Branch Offices (100 million yen) (100 million yen) (100 million yen) Taxes Other 150 15 Non-personnel expenses Deposit insurance premiums Energ
Slide 14: Mechanization Investment Plan
Mechanization Investment Plan In the mechanization investment plan for FY 2024, mechanization investment for customer service and profit improvement measures, etc. accounts for approximately 24% of the total investment. We will continue to make strategic investments in order to achieve (1) expansion
Slide 15: Securities
Securities While low-yielding foreign bonds were sold, government bonds were accumulated amid rising domestic interest rates, resulting in an increase in the balance of securities. Investment profits and losses on securities improved due to sales of stocks and equity ETFs. Balance of Securities Inve
Slide 16: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt Credit costs increased due to the reactionary decline in reversal of provision for doubtful accounts (general and specific). Disclosed bad debt rate increased by 0.26 percentage points year on year. Net Credit Costs Disclosed Bad Debt Bankruptcy rehabilitation
Slide 17: General Provision for Doubtful Accounts
General Provision for Doubtful Accounts Calculation of general provision for doubtful accounts is based on “Forward-looking Provisioning.”(*) Provisions decreased mainly due to the removal of overlays(*) that had been applied to all the healthcare and insurance industries. All overlays related to th
Slide 18: Reference: Overview of Forward-looking Provisioning
Reference: Overview of Forward-looking Provisioning What is the purpose of introducing What is forward-looking provisioning? What is overlay? forward-looking provisioning? It is a method of rationally estimating future risks based It was introduced in FY 2020 (Ended Mar. 2021), in This is a method t
Slide 19: Capital Adequacy Ratio
Capital Adequacy Ratio The capital adequacy ratio was maintained in the 9% range both on a non-consolidated and consolidated basis. Non-consolidated Regulatory Capital and Consolidated Regulatory Capital and Capital Adequacy Ratio Capital Adequacy Ratio Capital Non-consolidated capital adequacy rati
Slide 20: Status of Dividends and Shareholder Returns
Status of Dividends and Shareholder Returns Under the basic policy to pay stable dividends, we plan to increase dividends by 1 yen for the FY 2024 (ending March 31, 2025), in light of profits and other factors. (Yen) Annual Dividends Per Share (%) Shareholder Returns 50 50.0 Consolidated dividend pa
Slide 21: Forecast for FY 2024 (Ending March 31, 2025)
Forecast for FY 2024 (Ending March 31, 2025) Although expenses are expected to increase due to improved working conditions, including base-pay increases, we expect to see an increase in profits in the fiscal year ending March 31, 2025 as the balance of deposits and loans and interest and dividends o
Slide 22: Progress of Initiatives to Enhance Corporate Value
Progress of Initiatives to Enhance Corporate Value 22
Slide 23: Current Situation and Future Vision
Current Situation and Future Vision We recognize that ROE is below the level of capital costs. We will continuously endeavor to improve PBR while keeping capital costs in mind with the aim of achieving the highest ROE among regional banks in the future. PBR Enhancement Consolidated through Payout Di
Slide 24: Logic Tree for Improving Corporate Value
Logic Tree for Improving Corporate Value We aim to improve corporate value (PBR) by improving ROE with an emphasis on the quality of profits, and improving PER by implementing measures to reduce capital costs through information disclosure, etc. We will build a strategic human resources portfolio to
Slide 25: Impact of Higher Interest Rates on Earnings
[Deposits, Loans, and Securities] Enhance RORA (Strengthen profitability) Impact of Higher Interest Rates on Earnings If interest rates rise according to the assumed interest rate path, earnings are expected to increase, despite a temporary increase in valuation losses. Terminal Rate Assumption Path
Slide 26: Corporate Consulting
Enhance RORA [Provide Advanced Financial Services] Corporate Consulting (Strengthen profitability) Corporate consulting-related fees are on the rise, driven by structured finance, business succession, and M&A, which have been increasingly handled in-house. The number of consultations has been increa
Slide 27: Individual Consulting (1) Inheritance-related
[Provide Advanced Financial Services] Enhance RORA (Strengthen profitability) Individual Consulting (1) Inheritance-related Our efforts to address inheritance needs have been recognized, and the number of consultations and contracts is brisk. Going forward, we aim to further expand the business. New
Slide 28: Individual Consulting (2) Assets in Custody
[Provide Advanced Financial Services] Enhance RORA (Strengthen profitability) Individual Consulting (2) Assets in Custody In addition to the success of measures to strengthen proposal capabilities, the market remained strong and the balance of investment trusts and single-premium life insurances inc
Slide 29: Cashless-related (1)
Enhance RORA [Provide Advanced Financial Services] Cashless-related (1) (Strengthen profitability) Due to the increases in the number of Visa debit cards issued and card affiliates, charges from card users and card affiliates increased. Against the backdrop of the recovery in inbound tourism, the Ba
Slide 30: Cashless-related (2)
Enhance RORA [Provide Advanced Financial Services] Cashless-related (2) (Strengthen profitability) In addition to providing the cashless platform established by the Ryugin Group to financial institutions outside the prefecture, the introduction of touch payments for public transportation in the pref
Slide 31: Take on Challenges of Entering New Business Areas
Enhance RORA Take on Challenges of Entering New Business Areas (Strengthen profitability) Aim to strengthen and expand our business foundation and revenue opportunities by taking on the challenges of entering new business areas with the aim of providing advanced financial services. Consider Establis
Slide 32: Support Regional Decarbonization and Improve ESG Evaluations
Support Regional Decarbonization and Enhancement of Corporate Branding (Implement Sustainability Management) Improve ESG Evaluations Signed PRB in March 2024. Going forward, we will promote initiatives that will lead to solving social issues and increasing economic value. Signed PRB (Principles for
Slide 33: ESG-conscious Investment and Financing Activities, etc.
Enhancement of Corporate Branding ESG-conscious Investment and Financing Activities, etc. (Implement Sustainability Management) Expand products and services handled that contribute to solving ESG issues, including climate change. Products & Services Lineup Sustainability-related Profit ⚫ Ryugin SDGs
Slide 34: Build a Strategic Human Resources Portfolio
Build a Strategic Human Resources Portfolio In order to implement various measures and provide advanced financial services, we will increase opportunities for employees to acquire a wide range of specialized skills, including by increasing external secondments for training purposes, and build a stra
Slide 35: Progress of the Medium-Term Management Plan
Progress of the Medium-Term Management Plan 35
Slide 36: Overview of the Medium-Term Management Plan
Overview of the Medium-Term Management Plan We create a sustainable and valuable future through collaboration with local communities by improving “corporate value, environmental value, and social value” with the goal of realizing our long-term vision of “achieving a beneficial cycle in the local eco
Slide 37: Progress and Outlook for the Profit/Loss Plan
Overview of Medium-Term Management Plan “Value 2023” Progress and Outlook for the Profit/Loss Plan Deposit and loan balance Plan (100 million yen) 239 [Deposit and loan balance] Management Targets and Results Interest on loans increased and the loan and deposit balance 230 228 increased due to great
Slide 38: Summary of Okinawa Economy
Summary of Okinawa Economy 38
Slide 39: Tankan/Economic Overview of Okinawa Prefecture
Tankan/Economic Overview of Okinawa Prefecture The prefectural economy is in an expansionary trend. Business Conditions DI (Favorable/Unfavorable) 42 Economic Overview Okinawa Prefecture 40 Nationwide Okinawa 39 35 ■ According to the Tankan’s survey of business conditions, 20 12 14 the economy in Ok
Slide 40: Increase/Decrease in Population and Projected Future Households
Increase/Decrease in Population and Projected Future Households The total population in Okinawa Prefecture has remained nearly unchanged, but declined for the first time since 2022. However, the number of households is likely to continue increasing for now. Population Change Rate (right axis) Projec
Slide 41: Number of Tourists, Hotel Occupancy Rates and Room Rates
Number of Tourists, Hotel Occupancy Rates and Room Rates The tourism-related sector’s growth is gaining momentum due to rising tourism demand. The number of incoming tourists in August 2024 reached 1 million for the first time after the COVID-19 Crisis. Number of Tourists Occupancy Rates and Room Ra
Slide 42: Hotel and Theme Park Opening Plans in the Prefecture
Hotel and Theme Park Opening Plans in the Prefecture Investment in Okinawa remains strong, and openings, including that of luxury hotels, are expected to continue into the future. Opening date Location Facility name No. of guest rooms, etc. Summer 2025 Nakijin village JUNGLIA Theme park Hotel FY 202
Slide 43: Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies
Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies Regarding the employment situation, the job-openings-to-applicants ratio remains above 1. The number of corporate bankruptcies has been calm. Unemployment Rates and No. of Corporate Bankruptcies (%) Job-openings-to-app
Slide 44: Official Land Price and Construction Unit Price
Official Land Price and Construction Unit Price Official land prices increased 5.5% year on year on average for all land uses, representing an increase for the eleventh straight year and a gain of 1.9 percentage points year on year, with residential land rising the highest in the nation. Constructio
Slide 45: Public Construction Contract Amounts and Backlog Amounts from Construction Order
Public Construction Contract Amounts and Backlog Amounts from Construction Order The backlog amount from construction orders continues to be firm. Public Construction Contract Amounts The Variation Rate of Backlog Amounts from (Million yen) (%) the Construction Order (Year-on-year change, index no.,
Slide 46: Number of New Housing Construction Projects Started and Consumption Trends
Number of New Housing Construction Projects Started and Consumption Trends Number of new housing construction projects started are slightly below the pace of the previous year. Consumption trends remain firm in the retail sector. (Units) Number of New Housing Construction Consumption Trends 18,000 P
Slide 47: About Bank of the Ryukyus
i About Bank of the Ryukyus @ FRIRERAT AILS BANK OF THE RYUKYUS GROUP
Slide 48: Bank of the Ryukyus Overview
Bank of the Ryukyus Overview Company Profile Affiliated Companies Establishment May 1, 1948 Address 1-7-1 Kumoji, Naha, Okinawa Prefecture Establishment May 10, 1972 Capital 346 million yen (100% stock ownership by Bank of the Ryukyus) Business Fields Leasing and installment-selling of information-r
Slide 49: Bank of the Ryukyus History
Bank of the Ryukyus History May 1948 Precursor organization established via the Military Government Ordinance No. 1 Bank of the Ryukyus was originally established on May 1, 1948 as a special banking organization via the Military Government Ordinance, and the US government provided 51 percent of the
Slide 50: Glossary
Glossary This is an important indicator that the Bank has established that places importance on management strategy, and mainly indicates profits from customer Profit from Customer departments, such as branches. Services Calculated as deposit and loan balance + profit from service charges - expenses
Slide 51: About This Document
About This Document Contact information for questions about this document: General Planning Department, Bank of the Ryukyus, Limited Tel : 098-860-3787 Fax : 098-862-3672 E-mail : ryugin@ryugin.co.jp The information in this document is on a non-consolidated basis unless otherwise specified. Informat
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