77 Bank, Ltd. · TSE:8341
77 Bank — FY2011 Earnings Presentation
26 slides from 77 Bank's earnings presentation, Jul 20, 2011
Slide 1: IR Presentation: Results for Fiscal Year Ended March 31, 2011
IR Presentation Results for Fiscal Year Ended March 31, 2011 July 20, 2011
Slide 2: Contents
Contents 1. Effects of the Great East Japan Earthquake 4. Projected performance for FY2012 Effects of the earthquake (Miyagi Prefecture) Profits and losses ………… 20 ……….. 1 Major accounts / interest rates / Effects of the earthquake (77 Bank) ……….. 2 interest margin …………. 21 2. Results for FY
Slide 3: Effects of the earthquake (Miyagi Prefecture)
1. Effects of the Great East Japan Earthquake Effects of the earthquake (Miyagi Prefecture) <Casualties> Losses due to the earthquake <According to <Railway> (Persons, Persons, as of Jul. Jul. 10) 10) the Jun. 24 Cabinet Office announcement> Dead 9,212 ・Shinkansen: Shinkansen: the entire line (Direc
Slide 4: Effects of the earthquake (77Bank)
1. Effects of the Great East Japan Earthquake Effects of the earthquake (77Bank) 77Bank’s branches in Miyagi Prefecture (128 branches) < Casualties > *Operating sites of branches as of March 31, 2011 ・As of Jun. 30, one Onagawa branch employee died, and ten Kesennuma branch employees and one tempora
Slide 5: Summary of profits and losses
2. Results for FY2011 Summary of profits and losses (JPY bn, %) YoY change Interest Interestincome income FY2010 FY2011 Increase/ Rate of Increases Increasesdueduetotoaarise riseinininterest interestand and decrease change % dividend dividend income resulting from (1) afall income resulting from (1)
Slide 6: Major accounts / interest rates / interest margin
2. Results for FY2011 Major accounts / interest rates / interest margin Major accounts (average balances) Interest rates / interest margin (JPY bn, %) (%) YoY change YoY change FY2010 FY2011 FY2010 FY2011 % % point Loans and bills discounted 3,429.3 3,455.5 0.8 Loans and bills discounted 1.75 1.
Slide 7: Credit-related expenses (1)
2. Results for FY2011 Credit-related expenses (1) <Branches in regions which suffered major tsunami damage> <Provision of reserve for debtors in regions which suffered major tsunami damage [Extraordinary loss]> Loan in Total ○ General reserve for possible loan losses … JPY 45.6 bn All 142 branches (
Slide 8: Credit-related expenses (2)
2. Results for FY2011 Credit-related expenses (2) Credit-related expenses < FY2011 > (JPY bn) Effect of the earthquake 2011 Actual 2012 Forecast ○ Provision of reserve for possible loan losses JPY 3.1 bn Recorded using a reserve ratio adjusted by taking into account Provision of reserve for possib
Slide 9: Credit disclosed under the Financial Reconstruction Law
2. Results for FY2011 Credit disclosed under the Financial Reconstruction Law < Credits disclosed under the Financial Reconstruction Law > ＜金融再生法開示債権の推移＞ Increased at the end of Mar. 2011 due to a fall in the number of borrowers (JPY bn) (%) reclassified into better categories and Loans to bankrupt
Slide 10: Capital adequacy
2. Results for FY2011 Capital adequacy <Management of risk capital > (JPY bn) ○Capital adequacy ratio -Maintained a capital adequacy ratio of above the 11% level, although the ratio Tier1 Tier1 Second First half of 315. 315.3 half of FY2012 dropped at the end of Mar. 2011 due to the effects of the e
Slide 11: Securities (1)
2. Results for FY2011 Securities (1) Balance of securities (JPY bn) < Gains (losses) from revaluation of securities > (JPY bn) Gains Change End of (losses) from the National gov. bonds Local gov. bonds 129.8 Stocks 150.0 Corporate bonds, Mar. 2011 from end of Short-term corporate Others revaluatio
Slide 12: Securities (2)
2. Results for FY2011 Securities (2) < Securities portfolio > < Composition of written-off securities > (JPY bn) ％ * Excluding revaluation gains (losses), after impairment (JPY bn) (at the end of Mar. 2011) National gov. bonds Local gov. bonds 40.0 Others 2,500.0 600.0 29.3% Corporate bonds Stocks C
Slide 13: FY2011 Management policy
3. Major management policies FY2011 Management policy FY2011: Year One of the Earthquake Reconstruction Project We will commit to restoring and growing the regional economy Top Priorities Early restoration of financial functions Stable and ongoing regional financing Improvement in business per
Slide 14: Utilization of operating capabilities toward restoration of the regional economy
3. Major management policies Utilization of operating capabilities with an eye toward the restoration of the regional economy ■ Development of Systems toward the Restoration of Financial Functions ◆ Promotion of initiatives toward ◆ Improvement of sales system restoration from the earthquake ○Early
Slide 15: Utilization of operating capabilities toward restoration of the regional economy
3. Major management policies Utilization of operating capabilities with an eye toward the restoration of the regional economy Further enhance total deposits, loans and assets in custody (1) Promoting loans to SMEs Build a promotion system enabling the head office Operation Branches and operation br
Slide 16: Utilization of operating capabilities: promoting housing loans
3. Major management policies Utilization of operating capabilities with an eye toward the restoration of the regional economy Further enhance total deposits, loans and assets in custody (2) Promoting housing loans < Number of housing loans granted and housing starts in Miyagi Pref.> Number of hous
Slide 17: Utilization of operating capabilities: enhance assets in custody
3. Major management policies Utilization of operating capabilities with an eye toward the restoration of the regional economy Further enhance total deposits, loans and assets in custody (3) Enhance assets in custody ＜ Change Change in sales amount in sales of investment amount trusts of investment
Slide 18: Utilization of operating capabilities: solution sales and new companies
3. Major management policies Utilization of operating capabilities with an eye toward the restoration of the regional economy Increased efforts for companies new to Miyagi Strengthen solution sales and their related local companies Continue to Efficiently use created RM <Incoming businesses concen
Slide 19: Utilization of operating capabilities: support for Asia business
3. Major management policies Utilization of operating capabilities with an eye toward the restoration of the regional economy Boost the support for local companies for Asia business ○Collect information on customers’ overseas business ○Efficiently use the head office and overseas partner Asia Busin
Slide 20: Improve productivity
3. Major management policies Improve productivity ■ Improve business efficiency and continue cost saving <Core OHR> Personnel Non-personnel Tax Core OHR Core gross expenses expenses operating income Improve efficiency of administrative work at operation (JPY bn) ％ (%) branches • Provide on-line op
Slide 21: Contribute to stakeholders
3. Major management policies Contribute to stakeholders Improve customer satisfaction Improve stockholder value Strengthen customer response capabilities to take Acquire treasury stock into account the needs of earthquake victims ○Total treasury shares acquired - Provide training for branch st
Slide 22: Profits and losses
4. Projected performance for FY2012 Profits and losses (JPY bn) FY2011 FY2012 Core Operation Income Results YoY change Plan YoY change Secured an increase over the Gross operating income 83.0 5.2 83.0 0.0 previous year due to a increase [Core gross operating income] [ 82.6] [ 0.6] [ 83.5] [ 0.9] in
Slide 23: Major accounts / interest rates / interest margin
4. Projected performance for FY2012 Major accounts / interest rates / interest margin (JPY bn, %) FY2011 FY2012 Results Plan YoY change YoY change Loans and bills discounted 3,455.5 0.8 3,504.0 1.4 Major accounts (average Securities 2,045.9 14.0 2,393.2 17.0 balances) Deposits and certificates of de
Slide 24: Progress of the Medium-term Management Plan (1)
5. Progress in implementing the Medium-term Management Plan Progress of the Medium-term Management Plan (1) I. Average balance of major accounts (JPY bn) FY2010 FY2011 Change from FY2012 Forecast Change from the forecast at Result Result FY2011 Plan the beginning of the plan Loans and bills discount
Slide 25: Progress of the Medium-term Management Plan (2)
5. Progress in implementing the Medium-term Management Plan Progress of the Medium-term Management Plan (2) III. Profits and losses (JPY bn, %) FY2010 FY2011 Change from FY2012 Forecast Change from the forecast at Result Result FY2011 Plan the beginning of the plan Core gross operating income 82.0 8
Slide 26: This is a Japanese-English translation of the presentation material for your convenience. In the
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