Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2021 Earnings Presentation
36 slides from Bank Of The Ryukyus,limited's earnings presentation, November 2021
Slide 1: Financial Results for FY 2021 (Ending Sep. 2021)
Financial Results for FY 2021 (Ending Sep. 2021) Received an honorable mention in the 29th (Fiscal 2020) Bingata Design Contest “Swaying Ocean Memory” by Mami Takeuchi
Slide 2: Contents
Contents 1. Okinawa’s Economy Amid the COVID-19 Crisis Tankan Survey ........ 4 Profit from Service Charges ........ 20 Tourism ........ 5 Assets in Custody ........ 21 Unemployment Rates, Job-openings-to-applicants Individual Customer Services ........ 22 Ratios, and Corporate Bankruptcies ........
Slide 3: Okinawa's Economy Amid the COVID-19 Crisis
1 Okinawa’s Economy Amid the COVID-19 Crisis Received an honorable mention in the 29th (Fiscal 2020) Bingata Design Contest “Swaying Ocean Memory” by Mami Takeuchi
Slide 4: Tankan Survey
Tankan Survey Tourism, which is a key industry in Okinawa Prefecture, worsened compared to nationwide results due to the impact of COVID-19. Business Sentiment DI (Good/Bad) Economic Overview of Okinawa Prefecture Prior to Major Spread of Following Major Spread of Pros- COVID-19 COVID-19 pects 40
Slide 5: Tourism
Tourism In the first half of FY 2012, the national state-of-emergency declaration kept be issued for about six months from May 23 to September 30, which led to a tough environment with restrictions to limit movement over prefectures. (Yellow-shaded portions of the graph indicate state-of-emergency p
Slide 6: Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies
Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies Declining demand in tourism, a key Okinawa Prefecture industry, and other such negative developments have continuously led to a worsening trend in increased unemployment rates and decreased job-openings-to-applicants r
Slide 7: Public Construction Contract Amounts and Numbers of New Housing Construction Projects Started
Public Construction Contract Amounts and Numbers of New Housing Construction Projects Started New public construction contract amounts remained strong despite the spread of COVID-19. Numbers of new housing construction projects were weak overall, primarily due to a significant decline in new rental
Slide 8: Financial Results for the Fiscal Year Ended September 30, 2021
2 Financial Results for the Fiscal Year Ended September 30, 2021 Received an honorable mention in the 29th (Fiscal 2020) Bingata Design Contest “Swaying Ocean Memory” by Mami Takeuchi
Slide 9: Financial Summary (Consolidated) (1/2)
Financial Summary (Consolidated) (1/2) Revenue decreased and profit increased. Consolidated interim net income increased, primarily due to profit increase for bank only. (100 million yen) FY 2021 (Ending Sep. 2021) FY 2020 Year on Year (Ending Sep. 2020) Ordinary revenue 288 –2 290 Ordinary expenses
Slide 10: Financial Summary (Consolidated) (2/2)
Financial Summary (Consolidated) (2/2) For each of the group of Bank of the Ryukyus, interim net income was secured to be in surplus. (100 million yen) Bank of Ryukyu Ryugin Ryugin OCS Others the Ryukyus Lease DC Hosho Ordinary revenue 193 82 8 10 4 –10 Ordinary profit 39 2 2 1 3 -2 Interim net inco
Slide 11: Financial Summary (Non-Consolidated)
Financial Summary (Non-Consolidated) Revenue and profit increased. Due to forward-looking provisioning of reserves in the fiscal year ended March 31, while additional credit costs were not generated, credit costs decreased. (100 million yen) FY 2021 (Ending Sep. 2021) FY 2020 (Ending Sep. 2020) Year
Slide 12: Summary of Profit/Loss Trends
Summary of Profit/Loss Trends (Non-Consolidated: September 2017 to September 2021) (Million yen) 2017/9 2018/9 2019/9 2020/9 2021/9 Year-on-year Profit from customer services*1 1,593 1,353 1,706 1,617 2,409 +792 Deposit and loan balance*2 10,970 10,918 11,313 11,530 11,563 +33 Profit from service ch
Slide 13: Profit/Loss During the Fiscal Year Ended September 30, 2021
Profit/Loss During the Fiscal Year Ended September 30, 2021 Year-on-year profit substantially increased due to decreased credit cost and increased profit from customer services. (100 million yen) Interim net income (Million yen) Factors Behind Year-on-year Increases 50 and Decreases 35 Increase in T
Slide 14: Profit from Customer Services
Profit from Customer Services Due to reduced expenses, increased profit from service charges, etc., profit from customer services increased. Profit from Customer Services Factors Behind Year-on-year Increases Expenses (Million yen) and Decreases (100 million yen) Profit from service charges (excl. l
Slide 15: Loans (1/2)
Loans (1/2) Slowdown in the growth rate of loan balance and the declined interest rate, loan interest continued to be flat. Loan balance Loan Interest Rate (%) Loan Interest Rate (100 million yen) Loan interest rate (regional banks nationwide) (100 million yen) 2.50 17,753 18,185 17,202 150 16,506 +
Slide 16: Loans (2/2)
Loans (2/2) COVID-19–related funding support and other measures brought about pronounced declines in yields from business loans. Syndicated Loans (%) Rental and Real Estate Loans (100 million yen) (%) (100 million yen) 1,500 Balance 0.75 6,500 2.0 Breakdown of Loan Balances by Use Interest Rate (Rig
Slide 17: COVID-19 Crisis Financial Support (1/2)
COVID-19 Crisis Financial Support (1/2) The amounts of provided loans with changed credit conditions and issued new loans have leveled out after COVID-19 pandemic was under control. Trends of Provided Loan Amounts with Changed Credit Trends of Provided Loan Amounts made in response to Condition in R
Slide 18: COVID-19 Crisis Financial Support (2/2)
COVID-19 Crisis Financial Support (2/2) We have provided proactive support for our customers prior to the spread of COVID-19. From October 2021, we have provided supports for the new phase with restart of economic activities in mind. Okinawa Prefecture COVID-19 Infection Numbers and Our Response Mea
Slide 19: Deposits
Deposits Deposit balance substantially increased due to COVID-19-related funding support and decline in consumption caused by avoiding going out. Deposit Balance Interest on deposits (100 million yen) (100 million yen) (%) Individual Commercial 10 25,149 Public funds, etc. +4.5% 25,000 24,054 0.06 I
Slide 20: Profit from Service Charges
Profit from Service Charges Service charges for mortgage loans, assets in custody service, card business services, and similar helped bring service charge profit up. Trends in Profit from Service Charges Factors Behind Year-on-year Increases (Excluding Group Credit Life Insurance Premiums and Loan G
Slide 21: Assets in Custody
Assets in Custody By developing sales strengthening measures for assets in custody, sales revenue from investment trusts, single-premium life insurances, and commercial insurances increased. Assets in Custody Balance Assets on Custody Sales Revenues (100 million yen) Single-premium life insurance In
Slide 22: Individual Customer Services
Individual Customer Services We have promoted asset inheritance supports for individuals from FY 2017. Since our efforts about the issues in inheritance was widely spread and recognized, Service Fees for Individual Customers increased Service Fees for Individual Customers How to support asset inheri
Slide 23: Corporate Customer Services
Corporate Customer Services Profit from service charges remained flat. No. of consulting for M&A showed an increasing trend due to the COVID-19 crisis. Service Fees for Corporate Customers Primary Consulting Business Services (Million yen) Structured finance M&A Business succession Structured Financ
Slide 24: Card-related Business (1/2)
Card-related Business (1/2) As both numbers of Visa debit cards issued and card affiliates steadily increased, charges from card users and card affiliates increased even in the COVID-9 crisis. Total Numbers of Visa Debit Cards Issued and Charges No. Card Affiliates and Affiliate Service Charges from
Slide 25: Card-related Business (2/2)
Card-related Business (2/2) Numbers of new members grew for Visa debit cards with contactless payment functionality. Payment terminal functions are becoming increasingly sophisticated at card-affiliate locations as we accelerate efforts to sign up new affiliates. Ryugin Visa Debit Card Recent Main E
Slide 26: ESG (Environment, Society, and Governance)
ESG (Environment, Society, and Governance) To facilitate proactive efforts for ESG, we strengthened new services and efforts in the Bank. Recent Main Efforts for E (Environment Measures) Recent Main Efforts for S (Social Problems) Breakdown of Loan Balances by Use for Bank of the Ryukyus Loan Produc
Slide 27: Securities
Securities Increases in local government bonds grew the balance while shortening of bond duration periods kept interest rate risk down. Also, reduces the interest-rate risk by shortening of duration. Securities Balance and Duration (100 million yen) Profit/loss in Trading Division Gains/losses from
Slide 28: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt Introduction of forward-looking reserve provisions in FY 2020. Reversal of net credit costs due to restart of principal payment from a part of business operators and recovery of economic indicators, or others. Net Credit Costs Disclosed Bad Debt Loan amounts w
Slide 29: Overview of Forward-looking Provisioning (1/2)
Overview of Forward-looking Provisioning (1/2) By switching to a more rational estimation method for future risk calculation that takes current and future information into consideration, we have strengthened our standing against future potential loss and risk. This bolsters our financial resilience
Slide 30: Overview of Forward-looking Provisioning (2/2)
Overview of Forward-looking Provisioning (2/2) Restart of principal payment from a part of business operators, mainly from the real estate industry. Reduction of provision due to the upgrade of rating. Overall Real Estate Industry (100 million yen) (100 million yen) (100 million yen) (100 million ye
Slide 31: Expenses
Expenses Non-personnel expenses increased due to new headquarters construction-related expenses or expenses due to forward-looking investments for introduction of semi-self-operated tablet terminals, card-related business, etc. Non-personnel expenses (1) Branch offices (2) System-related Deposit ins
Slide 32: Workforce Planning
Workforce Planning Due to decrease in workforce and reductions in administrative workloads, we achieved both bringing down labor costs and strengthening customer communication. History of Workforce Changes Main Efforts on the Counters of Bank Locations for Reduction of Administrative Workloads Perma
Slide 33: Capital Adequacy Ratio
Capital Adequacy Ratio Enhancement of preparation for financial supports related to the COVID-19 crisis. Steady increase of the capital adequacy ratio. Non-consolidated Regulatory Capital and Capital Adequacy Ratio Consolidated Regulatory Capital and Capital Adequacy Ratio (100 million yen) (%) (100
Slide 34: Forecast for FY 2021 (Ending March 31, 2022)
Forecast for FY 2021 (Ending March 31, 2022) Profit growth is forecasted for both non-consolidated and consolidated financial results due to improvements in credit costs and other areas. Non-Consolidated (100 million yen) FY 2021 (Ending Mar. 2022) FY 2020 (Ending Mar. 2021) Forecast Year on Year Co
Slide 35: Dividends
Dividends With consideration for Bank profit level recovery, we pay FY 2021 interim dividends equivalent in amount to FY 2019 payments. (Yen) Annual Dividends Per Share (%) Consolidated Dividend Payout Ratios 50 50.0 Consolidated dividend payout ratios (avg. for regional banks) Total Payout Ratio 41
Slide 36: 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