Hokuhoku Financial Group, Inc. · TSE:8377
Hokuhoku Financial — H1 FY2005 Earnings Presentation
28 slides from Hokuhoku Financial's earnings presentation, December 2005
Slide 1: Investors Meeting: Financial Results for Interim FY 2005
Hokuhoku Financial Group,Inc. Investors Meeting Financial Results for Interim FY 2005 ended September 30, 2005) Hokuhoku Financial Group December, 2005
Slide 2: Table of Contents
Table of Contents <Summary of Interim Results for FY 2005> <Strengthening Balance Sheet> Summary of Interim Results -P/L- 2 Disclosed Claims under the Financial Summary of Interim Results -P/L- 3 Reconstruction Law 15 Summary of Interim Results -B/S- 4 Credit Costs less than Net Business Income 16 F
Slide 3: Summary of Interim Results for FY 2005
Summary of Interim Results for FY 2005 1
Slide 4: Summary of Interim Results - P/L Consolidated and Total of Two Banks
Summary of Interim Results P/L Consolidated and Total of two banks (¥ Billion) Core Gross Business Profit (total of two banks): ¥88.1 Billion (+¥1.4 Billion compared to FY2004 first half) Core Business Profit (total of two banks): ¥43.3 Billion (Both banks recorded the highest profit ever) Net In
Slide 5: Summary of Interim Results - P/L Non-consolidated, Each Bank
Summary of Interim Results P/L Non-consolidated, each bank (¥ Billion) Highest profit ever for interim Core Business Profit Interim 43.3 41.0 41.6 Hokkaido Hokuriku Core Business Profit Annual) 87.8 85.8 87.2 Hokkaido Hokuriku Target (note) Hokuriku Bank includes Hokugin Corporate 3
Slide 6: Summary of Interim Results - B/S Each Bank
Summary of Interim Results B/S Each bank Loans Total of two banks ¥31.5 Billion compared to the balance of FY 2004 ended March 31, 2005 Deposits (Total of two banks 147.5 Billion (compared to the balance of FY 2004 ended March 31, 2005 Loans (total of 2 banks) substantial basis (¥ Billion) ( ) =
Slide 7: Financial Target
Financial Target Plan for Sound Management Results Projection and Target ‘04/9 ‘05/9 ‘06/3 ‘08/3 86.8 89.3 176.7 187.9 44.9 44.7 88.7 87.3 51.80% 50.18% 50.19% 46.48% 41.8 44.6 88.0 100.5 41.6 43.3 87.2 98.9 25.4 38.0 39.0 31.0 18.4 12.5 47.6 67.3 7.5 7.3 25.9 42.1 40.3 48.4 64.7 129.9 8.00% 8.78% 8
Slide 8: Operating Performance for Interim FY 2005
Operating Performance for Interim FY 2005 6
Slide 9: Growth of Consumer Loans
Growth of Consumer Loans (¥ Billion Loans (term-ended balance) substantial base Consumer Loans (term-ended balance) Portion Securitized (total of two banks + Hokugin Corporate) (total of two banks) (25.18%) (6,887.4) Share of consumer loans (%) (6,666.1) (6,689.8) (24.76%) 6,804.2 6,796.5 6,538.9 6,
Slide 10: Growth of Consumer Loans - Housing Loans
Growth of Consumer Loans (¥ Billion Housing Loans (term-end balance) New Housing Loan Made (total of two banks) (total of two banks) Refund of Loans Portion Securitized from other financial institutions such as (1,504.1) “The Government (1,472.0) Housing Loan (1,359.3) Corporation” (b) Loans to Newl
Slide 11: Growth of Consumer Loans - Card Loans
Growth of Consumer Loans (¥ Billion Card Loans (term-ended balance) Balance of Main Card Loan Products (term-ended balance) (total of two banks) Hokkaido Bank: Balance of “RAPID” Number of card holders (thousand) Hokkaido Hokuriku Bank: Balance of “SUPER NOW” & “QUICK MAN” Quick Man Hokuriku Super N
Slide 12: Rapid Increase in Fee-based Business
Rapid Increase in Fee-based Business (¥ Billion Fees & Commissions total) Fee Income from Investment Trust & Annuity Insurance (total of two banks) (total of two banks) Annuity Insurance (b) Investment Trust (a) Fee income from exchange is also increasing 03/3 04/3 04/9 05/3 05/9 Hokuri a 0.3 2.0 1.
Slide 13: Rapid Increase in Fee-based Business - Non-deposit Products
Rapid Increase in Fee-based Business Balance of Non-deposit Products (Individual) (total of two banks) Upper: Hokkaido Bank, Lower: Hokuriku Bank (¥ Billion) Balance of Investment Trust Balance of Public Bonds Balance of Foreign Currency Deposit Sales Amount of Investment Trust Sales Amount of Publi
Slide 14: Rapid Increase in Fee-based Business - Private Bonds, Syndicated Loans
Rapid Increase in Fee-based Business (total of two banks) ¥ Billion Private Placement Bonds (Sales Amount) Fees from underwriting Private Placement Bonds Syndicated Loans (Fees of arrangement) Number of Increasingincome Increasing incomeby byexpanding expanding arrangement profitableresources profit
Slide 15: Increasing Management Efficiency
Increasing Management Efficiency Expenses and Overhead Ratio Number of Employees ¥ Billion Average OHR of Share of temporary Regional Banks staffs ( ) OHR( ) 64.28% Target 4,550 Target Hokkaido Hokkaido Hokuriku Hokuriku Target Overhead Ratio decreased to 50.76% Establishing and enhancing which is m
Slide 16: Strengthening Balance Sheet
Strengthening Balance Sheet 14
Slide 17: Disclosed Claims under the Financial Reconstruction Law
Disclosed Claims under the Financial Reconstruction Law ¥ Billion Total of Two Banks + Hokugin Corporate Hokuriku Bank (+Hokugin Corporate) Ratio of problem assets based o the Financial Reconstruction Law (%) Substandard Loans Doubtful Assets Hokkaido Bank (non-consolidated) Bankrupt and Quasi-bankr
Slide 18: Credit Costs less than Net Business Profit
Credit Costs less than Net Business Profit ¥ Billion Total of Two Banks (+ Hokugin Corporate) Hokuriku Bank (+ Hokugin Corporate) Credit Cost Ratio (Bp) Net Business Profit Credit Costs Hokkaido Bank (non-consolidated) Net Business Profit Credit Costs Adoption of Rigid Rule for Self-Assessment Resul
Slide 19: Capital Ratio and Tier 1 Ratio
Capital Ratio and Tier 1 Ratio Hokuhoku FG (consolidated) Hokuriku Bank (non-consolidated) Exceed the target 8.65% 8.04% 8.42% 7.50% 8.78 8.33 Tier1 Target Tier1 8.12 Tier2 Hokkaido Bank (non-consolidated) 8.08% 7.28% Tier2 6.07% 6.47% Tier1 Sep. 2005 Repayment of Perpetual Subordinated Loans: ¥10.0
Slide 20: Deferred Tax Assets
Deferred Tax Assets Total of Two Banks/Consolidated Target (by March 2008): Reduce the Proportion of Deferred Tax Assets as Tier 1 Capital to 20% ¥ Billion Proportion of deferred Tax assets as Tier 1 Capital (%) consolidated consolidated consolidated consolidated Hokkaido Hokuriku (note) Total sum
Slide 21: 19
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Slide 22: Strengthening Retail Banking
Strengthening Retail Banking Risk Assets and Net Business Profit -Total of Two Banks- Net Business Profit (¥ Billion 91.0 ‘05/3 1.71% MaximizingProfitability Maximizing Profitability 75.0 Increasing Loans Increasing LoanstotoSMEs SMEs IncreasingConsumer Increasing ConsumerLoans Loans Net Business Pr
Slide 23: Effects from Branch Restructuring in Hokkaido
Effects from Branch Restructuring in Hokkaido (Number of Branches) ’04/3 ’05/3 ’05/9 Hokuri Integration of Branches between Branches ku Hokuriku Bank and Hokkaido Bank Integration (Scrapped) Changed to Loan Center Target Reducing Branches in Hokkaido from Hokk Branches 148 (as of ’04/3) to 138 (as o
Slide 24: System Integration
Customers Providing 24 hour Service of ATM Integrate after and so on… FY 2010 Providing products and services that reflects customers’ needs Speed Up: Product Development Value Up: High Quality Service & Products Bank of Yokohama Hokuriku Bank Hokkaido Bank FG Sharing Know-how System Conference E
Slide 25: Appendix
Appendix 23
Slide 26: Market Share in Our Home Market (Loans, '05/3)
Market Share in Our Home Market (Loans, ’05/3) ¥ Billion, % Hokuriku Region Hokkaido Region 21 26 26 26 32 21 12 36 44 17 15 Toyama Ishikawa Fukui Hokuriku Hokkaido Region Region Toyama Pref. Ishikawa Pref. Fukui Pref. Banks 6,959.5(78.8 ) 2,658.3(83.5 ) 2,623.9(77.0 ) 1,677.2(75.2 ) 8,622.4(74.2 )
Slide 27: Market Share in Our Home Market (Deposits, '05/3)
Market Share in Our Home Market (Deposits, ’05/3) ¥ Billion, % Hokuriku Region Hokkaido Region 24 27 32 22 31 18 12 34 49 % 15 14 Toyama Ishikawa Fukui Hokuriku Region Hokkaido Region Toyama Pref. Ishikawa Pref. Fukui Pref. Banks 10,410.3(75.9%) 4,014.1(79.0 ) 3,775.2(74.6 ) 2,621.0(73.2 ) 12,417.3
Slide 28: Hokuhoku Financial Group, Inc.
Inquiries related to this presentation should be addressed to Hokuhoku Financial Group, Inc. Planning Group TEL:(81) FAX:(81) E-MAIL honsha2@hokuhoku-fg.co.jp http://www.hokuhoku-fg.co.jp This document may not be reproduced or distributed to any third party without prior approval of Hokuhoku Financi
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