Fukuoka Financial Group, Inc. · TSE:8354
Fukuoka Financial — Investor Presentation (June 2022)
93 slides from Fukuoka Financial's investor presentation, June 2022
Slide 1: Investor Meeting June 2022
Investor Meeting June 2022 cFF@ Fukuoka Financial Group
Slide 2: Contents
Contents Part I: Management Strategy Part III: Financial Results & Earnings Projections (Reference) Summary of Financial Results for FY2021 3,4 Summary of Financial Results for FY2021 52 - 54 Review of the 6th Medium-Term Management Plan 5 Earnings Projections for FY2022 55 - 57 Long-term
Slide 3: Part I: Management Strategy
Part I: Management Strategy cFF@ Fukuoka Financial Group
Slide 4: Summary of Financial Results for FY2021
Summary of Financial Results for FY2021 Profit & loss (3 banks total) Point１ Core business profit was 97.5 billion yen (¥ bil.) 3 banks non-consolidated total Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank ▶ YoY chg. +17.9 billion yen (non-consolidated) (non-consolidated) (non-consolidated) [Comp
Slide 5: FY2021 Financial Results: Factors for YoY Changes
FY2021 Financial Results: Factors for YoY Changes Core business profit was 97.5 billion yen, up 17.9 billion yen year-on-year and up 3.5 billion against guidance, with both net interest income and non-interest income steadily increasing. Consolidated net income increased by 9.5 billion yen year-
Slide 6: Review of the 6th Medium-Term Management Plan: Achievement Of Targeted Management Indicators
Review of the 6th Medium-Term Management Plan: Achievement Of Targeted Management Indicators In addition to those described below, initiatives including cost reductions through the OHR structural reform project and investment diversification [in the are progressing successfully. Targeted managem
Slide 7: Long-term Strategy 1: Environmental Awareness
Long-term Strategy 1: Environmental Awareness Since its founding in 2007, FFG has been establishing its presence in Fukuoka and Kyushu by expanding its footprint of operations and taking on new challenges. FFG has reset its mission and long term objectives based on changes in the business enviro
Slide 8: Long-term strategy 2: Long-term vision
Long-term strategy 2: Long-term vision Under our unchanging management philosophy and brand slogan, we aim to become "The Best Regional Bank that contributes to the growth of all stakeholders through finance and consulting" with three core strengths: services development, solutions capability and
Slide 9: Long-term strategy 3: Three Core Strengths to be Equipped with
Long-term strategy 3: Three Core Strengths to be Equipped with FFG‘s mission is to realize a sustainable community, which in turn is what sustains FFG. In order to create a virtuous cycle, we will foster our 3 core strengths of services development, solutions capability and organizational stren
Slide 10: Long-term Strategy 4: Increasing Profit (through 2030)
Long-term Strategy 4: Increasing Profit (through 2030) We will grow profits while repeatedly investing for growth and realizing investment effects with the aim of improving ROE and expanding shareholders’ returns. – In the 7th Medium-Term Management Plan, we will make investment for new growth whi
Slide 11: 7th Medium-Term Management Plan: Outline and Target Management Indicators
7th Medium-Term Management Plan: Outline and Target Management Indicators The 7th Medium-Term Management Plan sets four priority initiatives under a new long-term vision targeting 2030. The target of FY2024, the final year of the Medium-Term Management Plan, is to have net income of 65 billion y
Slide 12: 7th Medium-Term Management Plan: Basic Strategy and Priority Initiatives
7th Medium-Term Management Plan: Basic Strategy and Priority Initiatives The basic strategy of the 7th Medium-Term Management Plan is to realize 4 priority initiatives based on the profit growth of existing businesses. We have promoted Digital Transformation (DX) through the initiatives for Minn
Slide 13: Growth of Existing Businesses 1: Sales Division
7th Medium-Term Management Plan: Growth of Existing Businesses 1: Sales Division To build a business model centered on fees, that does not focus on loans, through consulting that brings together the collective strengths of the Group. To aim at growth of profits from existing businesses by embody
Slide 14: Growth of existing business 2: Markets Division
77th Medium-Term Management Plan: Growth of existing business 2: Markets Division To build a high-quality portfolio from a medium/long term perspective while continuing initiatives to diversify investment targets and investment methods. Operational concept of the 7th Medium-Term Management Plan Co
Slide 15: Priority initiatives 1: Business process improvement - Phase 2
7th Medium-Term Management Plan: Priority initiatives 1: Business process improvement - Phase 2 We aim at reduction of OTC business volume by 50% by the final year of the medium-term management plan by establishing a core digital channel, making "all the transactions other than the physical transa
Slide 16: Priority Initiatives 2: Sales reform: Consumer Banking Digital Transformation
7th Medium-Term Management Plan: Priority Initiatives 2: Sales reform: Consumer Banking Digital Transformation We will dramatically improve customer convenience by revamping our banking apps and transforming into the bank of choice for our customers, even from a digital point of view. Utilizing
Slide 17: Priority Initiatives 2: Sales reform: Corporate Business Digital Transformation
7th Medium-Term Management Plan: Priority Initiatives 2: Sales reform: Corporate Business Digital Transformation We aim for business growth for both the customer and FFG by pursuing both FFG's and our customers' digital transformation. We provide differentiated value to our customers by realizin
Slide 18: Priority initiatives 3: Strengthening of strategic subsidiaries
7th Medium-Term Management Plan: Priority initiatives 3: Strengthening of strategic subsidiaries We will expand the business domain of our strategic subsidiaries in order to enhance the group's solution capabilities and organizational strength. Through the utilization of the bank's customer base
Slide 19: Priority Initiatives 4: Challenge to New Businesses
7th Medium-Term Management Plan: Priority Initiatives 4: Challenge to New Businesses Minna Bank will make the B2C business more competitive, improve its value as a digital bank, and at the same time aim at developing the BaaS business (B2B2X business). In addition to Minna Bank, we will actively
Slide 20: Human resources strategy
7th Medium-Term Management Plan: Human resources strategy We will acquire human resources who can realize business strategies, train existing human resources to strengthen service development and solution capabilities, and allocate human resources to growth areas. We will promote work styles tha
Slide 21: Sustainability Initiatives
7th Medium-Term Management Plan: Sustainability Initiatives Sustainability policy Sustainability long-term KPI Through business activities based on the Group’s management philosophy, Targeted cumulative amount of sustainable finance (FY2020～FY2030) Fukuoka Financial Group will create a virtuous cy
Slide 22: Profit Growth
7th Medium-Term Management Plan: Profit Growth We plan to achieve an additional net income of 10.9 billion yen for the 7th Medium-Term Management Plan by achieving profit growth in our core businesses through the realization of project effects to date. While we are also considering future-orient
Slide 23: Capital Policy (Basic Policy)
7th Medium-Term Management: Capital Policy (Basic Policy) We set the capital adequacy ratio at about 10% and aim for capital management that balances growth investment and shareholders’ return while maintaining soundness. With a targeted dividend payout ratio of 35%, we will pay dividends stably
Slide 24: Capital Policy (Dividend Table)
7th Medium-Term Management Plan: Capital Policy (Dividend Table) Regarding the dividend table, we have changed the profit level and the range of dividends per share, and set a new guideline for dividends with consolidated net income of 62.5 billion yen or more. Even if the consolidated net incom
Slide 25: Part II: Minna Bank (Minna no Ginko)
Part II: Minna Bank (Minna no Ginko)
Slide 26: Minna Bank 1-year History Since Launch and New Medium-Term Management Plan
Fukuoka Financial Group 34th Company Information Meeting Minna Bank 1-year History Since Launch Of Commercial Operation and New Medium-Term Management Plan May 23, 2022
Slide 27: History of Japan's First Digital Bank (2021)
History of Japan's First Digital Bank (2021) Main topics of announcements May: Commencement of services as the first digital bank in Japan Minna Bank Jun: Concluded a basic agreement with Pixiv in the BaaS business Pixiv Branch Concluded a basic agreement with Personal Temp-staff in the BaaS J
Slide 28: Review of the First Year (1st Year of Service) 1
Review of the First Year (1st Year of Service ) 1 Changes in the number of accounts and downloads The results of FY2021 ■Number of downloads ■Number of accounts ■Referral Expected value for 1 1 million year after service commencement 0.9 million Cumulative downloads 880 0.8 million 9 months 0.7 mill
Slide 29: Review of the First Year (1st Year of Service) 2
Review of the First Year (1st Year of Service ) 2 User attributes User location distribution 70% Digital native generation Prefectures with many users (Ratios by prefecture) ■ Teens (7%) Prefectures / areas with many digital natives ■ 20s (37%) Age group ■ 30s (26%) ■ 40s (16%) No. 1 Tokyo (13%) Kan
Slide 30: Achievement by Product
Achievement by Product 29
Slide 31: Wallet
Achievements Deposit balance KPI Wallet Deposit balance Percentage of achievement Total 25.0 billion yen 23.4 % 5.85 billion yen Planning deposit acquisition initiatives Total of ordinary deposits + savings deposits ✔ A bank where you can enjoy managing your money. What people say ✔ Well designed an
Slide 32: Box
Achievements Balance of Box Deposit Percentage of users Box Total Percentage of users 1.01 billion yen 7.0 % Per person 45,000 yen ✔ You can separate money like a real wallet. What people say ✔ Being able to sort easily by dragging is a novel and easy-to-use feature. ✔ The ability to slide money aro
Slide 33: Debit
Achievements Number of debit cards issued Percentage of provisioning setters Debit Number of cards issued Percentage of setters 33.1 % 321 thousand ✔ One of the few debit cards that supports Apple Pay. What people say ✔ Issued immediately when you open an account and can be used immediately. ✔ It’s
Slide 34: Record
Achievements Accounts using Record Percentage of accounts using Record Record Number of used accounts Percentage accounts 18.8 % 61,000 users ✔ It's fresh to be able to see across all of my assets. What people say ✔ It can be used as a financial platform that goes beyond the household account book.
Slide 35: Cover
Achievements Balance using Cover Percentage of users Cover Balance using Cover Percentage of users 11.6 % 1.41 billion yen ✔ This is the best banking app out there! My application was accepted on What people say the same day and I was able to withdraw immediately! ✔ It is very helpful because they s
Slide 36: Premium
Achievements Usage of Premium Percentage of users with Premium contracts Premium Number of contracts Percentage of users 47.9 % 156 thousand users What people say ✔ When transferring to other banks, you can conditionally receive a better transfer fee so it's great when making a transfer. ✔ You can t
Slide 37: Review of Savings Deposit Interest Rate and Premium Service
1st anniversary commemorative project Review of Savings Deposit Interest Rate and Premium Service Public announcement today For all users Exclusively for Premium users For Premium users who joined by May 28, 2022 and Covered users whose free period has expired Use case of other banks Items Base inte
Slide 38: Minna Bank's New Medium-Term Management Plan
Minna Bank’ｓ New Medium-Term Management Plan 37
Slide 39: Minna Bank's positioning
Minna Bank's positioning Competitiveness strategy (Positioning) of Minna Bank 1 FFG is developing iBank business to upgrade existing banking businesses. Value Conventional Latest technologies (cloud, etc.) Leading the industry with customer-driven UI/UX as the first "Neobank" in Japan Proposition te
Slide 40: New medium-term management plan for Minna Bank
New medium-term management plan for Minna Bank Repost Overview of the Medium-Term Management Plan for Minna Bank Strategy by business domain FY2022 FY2023 FY2024 FY2025 Enhancement of existing services that reflect customer feedback Implementation of functions in unfulfilled areas/launch Frictionles
Slide 41: Loan by Minna Bank
New Medium-Term Management Plan Priority Initiatives Loan by Minna Bank 2022 Summer Launch 40
Slide 42: How to compete in the loan business
How to compete in the loan business 1 Positioning in the Domestic Consumer Loan Market Global Trends Revolving cash advances BNPL ■Fintec market in the US Linked Traditional credit judgment using credit Simple credit judgment based on our to purchase In advanced fintech markests such as the US, BNPL
Slide 43: How to compete in the loan business: market potential
How to compete in the loan business 2 Assumed market potential ＋ Possibility of market expansion TAM 1 Existing Cover users are in their 20s and 30s, and less than 17% are in New customers (Total Addressable Market) their 40s. Segment About 15.9 trillion yen ■ Users of existing Cover by age group (c
Slide 44: Outline of the loan products offered by Minna Bank
Outline of the loan products offered by Minna Bank Ordinary financial institutions so far Minna Bank Information input Information input Frictionless If you have an account, basic information is automatically The typical number of entered, and only annual income information is inputs to apply for a
Slide 45: Minna Bank BaaS Business
New Medium-Term Management Plan Priority Initiatives Minna Bank BaaS Business 44
Slide 46: The new trend of Banking as a Service (BaaS)
The new trend of “Banking as a Service (BaaS)” The future financial services = BaaS Partner needs for financial services App of non-financial Results of Needs Hearing for Financial Services by Minna Bank (n=164) Financial companies (Partner White label app Needs for financial services functions comp
Slide 47: World to be realized by BaaS 1: Service Vision
World to be realized by Banking as a Service (BaaS) 1: Service Vision Vision of services provided (for retailers) Structure and trends of A2A settlement What is A2A (Account to Account) settlement？ App (Retailer) A2A Simple new settlement service with embedded payment functionality Settlement servic
Slide 48: World to be realized by BaaS 2: Case study in overseas
World to be realized by Banking as a Service (BaaS) 2: Case study in overseas Walmart (USA) Characteristics of Also can be offered by Minna Bank Challenges Outline of the service the service • “In the United States, there is not enough • Ordinary accounts Wallet savings, and there is a need for fina
Slide 49: Key points regarding the target metrics of the plan 1
Minna Bank| New Medium-Term Management Plan Key points regarding the target metrics of the plan 1 Number of accounts / volume in the plan Impact of the consolidated bottom line of FFG Number of accounts is in ten thousand persons. The balance is in hundred million yen. ■ Profit growth plan for mediu
Slide 50: Key points regarding the target metrics of the plan 2
Minna Bank| New Medium-Term Management Plan Key points regarding the target metrics of the plan 2 The points of the adjustment of the medium-term management plan Development organization plan ■ Overall project resourcing and investment plan ■ Brining the development organization in-house We plan to
Slide 51: Deliver valuable connections to everyone.
金融DX 2022 Deliver valuable connections to everyone. Aim at a new form of a bank that has never been seen before. Fukuoka Financial Group All Rights Reserved 50 50
Slide 52: Part III: Financial Results & Earnings Projections (Reference)
Part III: Financial Results & Earnings Projections (Reference)
Slide 53: Summary of Financial Results for FY2021
Summary of Financial Results for FY2021 Profit & loss (3 banks total) Point 1 Core business profit is 97.5 billion yen (¥ bil.) [Compared to projection of 3 banks non-consolidated total Bank of Fukuoka (non-consolidated) Kumamoto Bank (non-consolidated) Juhachi-Shinwa Bank (non-consolidated) ▶ YoY c
Slide 54: Transition of Top Line: FY2021 Results
Transition of Top Line: FY2021 Results Core business profit increased 17.9 billion yen year-on-year and 3.5 billion yen compared to the previous disclosure to 97.5 billion yen. Net interest income increased 5.9 billion yen year-on-year. Non-interest income increased 5.0 billion yen year-on-year
Slide 55: FY2021 Consolidated Net Income: Factors Driving Year-on-Year Change
FY2021 Consolidated Net Income: Factors Driving Year-on-Year Change Consolidated net income increased 9.5 billion yen year-on-year to 54.1 billion yen, mainly due to an increase in core business profit and a decrease in integration expenses. FY2021 Consolidated net income [YoY chg.] (¥ bil.) YoY c
Slide 56: Earnings Projections for FY2022
Earnings Projections for FY2022 Profit & loss (3 banks total) Profit & loss [by bank] (¥ bil.) (¥ bil.) 3 banks Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank non-consolidated total (non-consolidated) (non-consolidated) (non-consolidated) Bank of Fukuoka Core business profit Net income P:FY2022 Y
Slide 57: Transition of Top Line: FY2022 Projected
Transition of Top Line: FY2022 Projected Core business profit is projected to increase 2.5 billion yen year-on-year to 100 billion yen, driven by an increase in interest on securities and a decrease in overhead expenses. FY2022 projected [YoY chg.] (¥ bil.) Core business profit: +2.5 Net interest
Slide 58: Earnings Projections for FY2022: Factors Driving Year-on-Year Change
Earnings Projections for FY2022: Factors Driving Year-on-Year Change Consolidated net income is projected to increase 2.9 billion yen year-on-year to 57.0 billion yen mainly due to an increase in core business profit and a turnaround of the previous fiscal year’s loss on sales of bonds. FY2022 pro
Slide 59: Net interest income
Net interest income Despite an expected increase in funding costs due to higher interest rates overseas, net interest income for FY2022 is projected to increase 0.4 billion yen year-on-year to 185.3 billion yen as a result of expanding diversified investments in the market sector and continued foc
Slide 60: Loans
Loans Loans increased at an annual rate of +3.7% in FY2021 due to an increase in the balance of loans, especially to SMEs. In FY2022, an annual rate of +0.7% is projected, due to an increase in the balance of loans to SMEs and retail. Loans (domestic + international) Loans (by segment) * Excludi
Slide 61: Deposits + CDs
Deposits + CDs Deposits & CDs maintained an increasing trend on back of expanding customer base, etc. The increasing trend is projected to continue in FY2022. Deposits and CDs (domestic + international) Deposits and CDs (by segment) (Annual rate) (¥ bil.) (Annual rate) (¥ bil.) 20,765.0 3 banks
Slide 62: Securities
Securities Unrealized gain on securities as of March 31, 2022 is 69.9 billion yen, a decrease of 89.7 billion yen from March 31, 2021 due to lower stock prices and higher interest rates. Although domestic bond duration is lengthening, the materiality test reference value for interest rate risk r
Slide 63: Non-interest income
Non-interest income Non-interest income is projected to increase, mainly from asset management product fees. Sales of investment trusts will continue to build, maintaining the record-high levels of FY2021. Non-interest income (3 banks total + FFG Securities) Asset management product sales * Excl
Slide 64: Overhead Expenses
Overhead Expenses In FY2021, overhead expenses decreased 6.9 billion yen due to the synergies arising from the merger of Eighteenth Bank with Shinwa Bank, mainly in personnel expenses and system expenses, and to the successful promotion of cost reduction projects. In FY2022, overhead expenses ar
Slide 65: Credit Cost & NPL
Credit Cost & NPL We recorded a transfer of 1.5 billion yen to credit cost, an increase of 1.3 billion yen year-on-year. New bankruptcies remained at a low level, and large redemptions, etc. helped keep credit cost low. Reserve for possible loan losses is expected to be about 200 billion yen, wh
Slide 66: Capital Policy
Capital Policy Based on the premise of maintaining soundness, we strive for capital management that balances shareholder returns with growth investment aimed at the development of local communities and the improvement of FFG’s corporate value. FFG consolidated capital adequacy ratio Earnings proje
Slide 67: Part IV: Seventh Mid-Term Management Plan_Figures (Reference)
Part IV: Seventh Mid-Term Management Plan_Figures (Reference)
Slide 68: Earnings Projections for FY2024
Earnings Projections for FY2024 3 banks total Consolidated 3 banks Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank Chg. non-consolidated total (non-consolidated) (non-consolidated) (non-consolidated) P:FY24 from P:FY2022 FY2021 Chg. from Chg. from Chg. from Chg. from P:FY2024 FY2021 P:FY2024 FY202
Slide 69: 7th Mid-Term Plan: Loans
7th Mid-Term Plan: Loans Loans (domestic + international) Loans (by segment) * Excluding loans to FFG and Government (annual rate) (¥ bil.) * Excluding loans to FFG and Government (annual rate) (¥ bil.) Increase in new mid-term plan: +645.7 billion yen SMEs: +2.5% 3-year average annual rate 3-year a
Slide 70: 7th Mid-Term Plan: Deposits + CDs
7th Mid-Term Plan: Deposits + CDs Deposits and CDs (domestic + international) Deposits and CDs (by segment) (Annual rate) (¥ bil.) (Annual rate) (¥ bil.) Increase in new mid-term plan: +2,127.9 billion yen Corporate : +4.0% 3-year average annual rate 3-year average annual rate: +3.4% Retail : +3.9%
Slide 71: 7th Mid-Term Plan: Major Products
7th Mid-Term Plan: Major Products Housing loans (average balance) (¥ bil.) Consumer loans (average balance) (¥ bil.) 3-year change 3-year change 3,532.2 3,648.4 +348.6 331.0 +16.5 Total 3,299.7 3,415.5 Total 314.5 316.1 322.3 774.7 790.8 Juhachi- 746.7 760.5 Juhachi- 81.0 Shinwa 82.9 80.6 79.9 517.3
Slide 72: Part V: FY2021 Financial Results_Figures (Reference)
Part V: FY2021 Financial Results_Figures (Reference)
Slide 73: Average Balance of Loans (by Bank)
Average Balance of Loans (by Bank) Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank (domestic, non-consolidated) (domestic, non-consolidated) (domestic, non-consolidated) * Excluding loans to Government, etc. * Excluding * 劣後受益権除くloans to Government * Excluding * 劣後受益権除く loans to Government 9,361.0
Slide 74: Average Balance of Loans (by Industry)
Average Balance of Loans (by Industry) Mar. 31, 2022 Change from Mar. 31, 2021 3 banks total Fukuoka Kumamoto Juhachi-Shinwa 3 banks total Fukuoka Kumamoto Juhachi-Shinwa % % % % Classification by industry Domestic loans 16,849.5 11,641.3 3,369.8 -445.1 -359.1 -43.2 -760.9 (excluding the special int
Slide 75: Average Balance of Deposits & CDs (by Bank)
Average Balance of Deposits & CDs (by Bank) Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank (domestic, non-consolidated) (domestic, non-consolidated) (domestic, non-consolidated) 12,591.3 1,613.9 5,518.4 5,301.6 Average deposit balance 11,748.0 1,545.0 5,003.2 by customer segment 824.5 1,440.8 40.
Slide 76: Interest Rates on Loans (by Segment)
Interest Rates on Loans (by Segment) 3 banks total * Excluding loans to FFG and Government, etc. (%) Retail Loan overall Corporate Public 1H/FY19 2H/FY19 1H/FY20 2H/FY20 1H/FY21 2H/FY21 75
Slide 77: Interest Rates on Loans and Deposits & CDs (by Bank)
Interest Rates on Loans and Deposits & CDs (by Bank) Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank (domestic, non-consolidated) (domestic, non-consolidated) (domestic, non-consolidated) * Excluding loans to Government, etc. * Excluding loans to Government * Excluding loans to Government Interest
Slide 78: Breakdown of Loans and Deposits & CDs by Type
Breakdown of Loans and Deposits & CDs by Type Domestic loans (as of Mar. 31, 2022) Domestic deposits & CDs (as of Mar. 31, 2022) 3 banks Juhachi- 3 banks Juhachi- total Fukuoka Kumamoto total Fukuoka Kumamoto Shinwa Shinwa Based on short-term prime Interest 60.8% 61.3% 61.5% 59.6% 19.1% 17.9% 31.1%
Slide 79: Securities (by Bank)
Securities (by Bank) Bank of Fukuoka (consolidated) Kumamoto Bank Juhachi-Shinwa Bank * 15年変国は、12/9末まで理論値採用 * 15年変国は、12/9末まで理論値採用 Unrealized gain (loss) 135.6 89.1 68.5 56.6 Securities balance 38.5 32.8 2,677.6 2,446.7 3.3 2.5 1,249.3 2,320.6 0.5 1,183.9 1,187.2 973.0 200.1 764.9 158.6 155.9 261.1 F
Slide 80: Securities
Securities Unrealized gain on securities as of March 31, 2022 is 69.9 billion yen, a decrease of 89.7 billion yen from March 31, 2021 due to lower stock prices and higher interest rates. Although domestic bond duration is lengthening, the materiality test reference value for interest rate risk r
Slide 81: Non-Interest Income / Asset Management Product Sales (by Bank)
Non-Interest Income / Asset Management Product Sales (by Bank) Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank * For all 3 banks, excluding gains (losses) on bonds 21.9 1.3 4.9 Non-interest income 1.0 4.1 3.7 18.5 18.3 0.9 0.6 6.3 1.8 0.6 0.1 0.6 2.1 Others 5.2 4.8 0.1 2.1 0.1 0.1 Domestic 5.2 1.9
Slide 82: Overhead Expenses / Credit Cost (by Bank)
Overhead Expenses / Credit Cost (by Bank) Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank 51.3% 51.2% 72.6% 70.3% 81.4% 81.9% Core OHR 46.7% 66.3% 71.2% Overhead expenses & 67.7 68.4 41.8 40.7 67.0 13.6 13.3 13.1 3.3 35.3 6.7 3.8 core OHR Tax 6.5 6.4 1.1 0.9 0.9 2.7 General 30.0 30.3 6.1 18.9 17.7
Slide 83: Non-Performing Loans / Capital Adequacy Ratio (by Bank)
Non-Performing Loans / Capital Adequacy Ratio (by Bank) Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank * After partial write-off * After partial write-off * After partial write-off 2.26% 2.49% Non-performing loans & 1.62% 1.58% 2.08% 2.06% 2.12% 2.11% NPL ratio 1.41% 184.0 185.6 88.0 39.4 38.2 82
Slide 84: Part VI: Kyushu Economy (Reference)
Part VI: Kyushu Economy (Reference)
Slide 85: Market Share
Market Share Oita Pref. Fukuoka Number of business Number of business Population Loans Deposits Population Loans Deposits Pref. establishments establishments Kitakyushu Bank 5,060,000 223,000 23.5 40.6 3.5 8.4 trillion yen trillion yen 1.5 trillion yen 1,150,000 54,000 trillion yen trillion yen Bank
Slide 86: Economic Trends
Economic Trends 30 Bank of Japan’s Tankan 20 Business conditions D.I. 10 Fukuoka 0 30 -10 Projection -20 Fukuoka region* Projection -30 Kitakyushu 20 -40 Japan 17/3 18/3 19/3 20/3 21/3 22/3 * Fukuoka region: Fukuoka Prefecture plus Saga Prefecture, excluding Kitakyushu 30 10 20 Kumamoto 10 0 0 -10 P
Slide 87: Industrial Production Trends
Industrial Production Trends Industrial production index (FY2015 = 100) [Kyushu] Main industry trends (Million pieces) Integrated circuits (%) 1,000 50 40 800 30 20 Japan 600 10 400 Quantity 0 YoY chg. (right axis) -10 200 -20 0 -30 17/3 18/3 19/3 20/3 21/3 22/3 (Thousand vehicles) Passenger cars (%
Slide 88: Capital Investment / Housing Investment
Capital Investment / Housing Investment Capital investment: Bank of Japan’s Tankan (YoY change) Housing starts 30 (Thousand) (%) 1,200 20 Projection Estimate 1,000 10 20 Japan 800 0 Japan 600 -10 10 400 -20 Number of houses 200 -30 YoY chg. (right axis) 0 -40 0 16 17 18 19 20 21 (Thousand) (%) 120 2
Slide 89: Land Price Trends
Land Price Trends Volatility of standard land prices <Ministry of Land, Infrastructure and Transport: 2022 Outline of Land Price Surveys Conducted by Prefectural Governments> (%) Major cities in Fukuoka Pref. (%) ○ Japan: There have been increases for the first time in 2 years for the average of all
Slide 90: Corporate Bankruptcies
Corporate Bankruptcies (¥ bil.) (Number) Number of bankruptcies and total liabilities 20 50 15 40 Fukuoka (¥ bil.) Left axis: Total liabilities (bar graph) (Number) 30 1,600 Right axis: Number of bankruptcies (line graph) 900 10 20 1,400 800 5 10 1,200 700 0 0 Japan 1,000 600 17/3 18/3 19/3 20/3 21/
Slide 91: Loans
Loans (%) 8 Rate of increase of bank loans (YoY change, monthly) 6 (%) Fukuoka (%) 8 4 2 1.7 0 -2 Japan 6 -4 12/3 14/3 16/3 18/3 20/3 22/3 8 6 Kumamoto 4 4 2 3.0 0 -2 2 1.9 -4 12/3 14/3 16/3 18/3 20/3 22/3 1.7 8 Kyushu 6 4 Nagasaki 0 2 0 1.3 -2 -4 -2 -6 12/3 14/3 16/3 18/3 20/3 22/3 12/3 14/3 16/3 1
Slide 92: Deposits
Deposits (%) 12 Rate of increase of bank deposits (YoY change, monthly) 10 (%) Fukuoka 8 12 6 4 2 2.5 10 Japan 0 12/3 14/3 16/3 18/3 20/3 22/3 8 12 10 Kumamoto 8 6 6 4 4.3 2 0 4 3.4 -2 12/3 14/3 16/3 18/3 20/3 22/3 3.2 10 Kyushu 2 8 Nagasaki 6 0 4 4.4 2 0 -2 -2 12/3 14/3 16/3 18/3 20/3 22/3 12/3 14/
Slide 93: Contact for further inquiries
Contact for further inquiries: Public Relations Group, Corporate Planning Division Fukuoka Financial Group Phone: +81 - 92 - 723 - 2255 Email: ffg-ir@fukuoka-fg.com Website: https://www.fukuoka-fg.com This document has been prepared solely for the purpose of providing information and does no
Fukuoka Financial Group — Investor Presentation (June 2022) on 6ix