Hyakugo Bank, Ltd. · TSE:8368
Hyakugo Bank — The Hyakugo Bank — FY2024 Earnings Presentation
58 slides from Hyakugo Bank's earnings presentation, Jun 3, 2025
Slide 1: Presentation for FY2024 Financial Results
Presentation for FY2024 Financial Results Information meeting June 3, 2025 (Securities Code: 8368)
Slide 2: Table of Contents
Table of Contents Outline of FY2024 Financial Position P.4 Review of the Previous Medium-term Management Plan P.11 New Medium-term Management Plan P.14 Initiatives to Improve Corporate Value P.33 Local Sustainability Initiatives P.39 Appendix P.43 Appendix (Supplementary Materials for Financial Resu
Slide 3: Summary
Summary FY2024 Results and FY2025 Financial Forecast FY2024 results – Both ordinary income and net income increased year-on-year, reaching record highs FY2025 financial forecast – Income increase is expected largely due to an improvement in other operating income and an increase in gain and loss
Slide 4: Outline of FY2024 Financial Position
Outline of FY2024 Financial Position 4
Slide 5: Financial Highlights
Financial Highlights Summary of FY2024 Financial Results (Non-Consolidated) (Million yen) FY 3/24 FY 3/25 Year-on-year (100 million yen) FY 3/24 FY 3/25 Year-on-year Gross operating income (1) 57,706 61,911 4,204 Interest and dividend on securities 249 276 26 Of which, gain and loss from Interest in
Slide 6: Interest income
Interest income An increase in interest on loans and securities contributes to higher interest income of 3.7% year-on-year Factors underlying changes in interest income <Total of domestic Deposit-loan yields (domestic Returns on securities and international operations departments (head office an
Slide 7: Fees and commissions
Fees and commissions Fees and commissions decreased 9.3% year-on-year, mainly due to a decrease in housing-loan-related fees Fees and commissions (non-consolidated) Housing-loan-related fees (Million yen) 3,553 (751) (Million yen) 3,406 3,369 Corporate solutions Depository assets-related 3,009 2,8
Slide 8: Expenses
Expenses Expenses grew 1.0% year-on-year due to increases in personnel and non-personnel expenses Expenses Core OHR (core gross operating profit basis) (Million yen) Personnel expenses Non-personnel expenses Taxes (1.28)P +387 70.81% 62.24% 63.78% 40,989 60.89% 59.61% 40,119 39,614 40,001 2,118 38
Slide 9: Credit Costs (non-performing loans ratio)
Credit Costs (non-performing loans ratio) Credit costs decreased due to a rebound from the previous fiscal year, when a change was made to the calculation method for the general allowance for loan losses Credit costs (non-consolidated) Non-performing loans Non-performing loans ratio coverage rat
Slide 10: FY 3/2026 Forecasts (published figures)
FY 3/2026 Forecasts (published figures) Income increase is expected largely due to an improvement in other operating income and an increase in gain and loss from stocks and other securities Forecast (non-consolidated) Forecast (consolidated) FY 3/26 FY 3/26 (Million yen) FY 3/25 (Million yen) FY 3/2
Slide 11: Review of the Previous Medium-term Management Plan
Review of the Previous Medium-term Management Plan 11
Slide 12: Basic Strategies of the Previous Medium-term Management Plan
Basic Strategies of the Previous Medium-term Management Plan Under the previous Medium-term Management Plan, “Gateway to the Future II,” we renewed our long-term vision to address new threats such as climate change risks and lifestyle changes We focused on “five basic policies” and “eleven key s
Slide 13: Summary of the Previous Medium-term Management Plan
Summary of the Previous Medium-term Management Plan Some KPI targets were revised due to changes in the external environment, but all KGIs were achieved Previous Medium-term Management Results in FY2023 Results in FY2024 FY2024 Plan: “Gateway to the Future II” (Final Targets) Consolidated net inco
Slide 14: New Medium-term Management Plan
New Medium-term Management Plan 14
Slide 15: Environmental Awareness
Environmental Awareness There have been changes in the external environment, such as a declining population, a declining birthrate and an aging population, and growing interest in the environment and sustainability Create economic and social value by proactively utilizing new technologies such a
Slide 16: Materiality Review
Materiality Review Reviewed materiality for new growth Redefined the issues to address in order to achieve new growth based on the Bank’s corporate philosophy and corporate statement Theme Materiality Goal Develop, promote, and vitalize local industries by helping local companies (1) Creating vi
Slide 17: Outline of the New Medium-term Management Plan
Outline of the New Medium-term Management Plan The new Medium-term Management Plan is a four-year plan toward the 150th anniversary of Hyakugo Bank’s founding, aimed at building a more robust and efficient business structure for the banking business, its core business Promote business renewal an
Slide 18: Financial and Non-Financial Targets
Financial and Non-Financial Targets The new Medium-term Management Plan sets two financial KGIs: “ROE” and “Net Income” Aim to create social value in addition to economic value by setting new non-financial KGI targets Target for FY2028 ROE in consolidated net Consolidated net income Sustainable
Slide 19: Basic Strategy 01: Creation of Social Value
Basic Strategy 01: Creation of Social Value (Establishment of a System to Take on the Challenge of Creating Social Value) Establish a system for the entire group to work together to take on the challenge of creating social value Aim Start a new project that allows each employee to freely create
Slide 20: Basic Strategy 02: Enhancement of Funding and Capital Efficiency
Basic Strategy 02: Taking on Challenges for Growth (Enhancement of Funding Efficiency and Capital Efficiency Management) Optimize asset allocation by enhancing funding efficiency and capital efficiency management for the banking Aim business, the Bank’s primary business, while taking appropriate ris
Slide 21: Basic Strategy 02: Strengthening of Consulting
Basic Strategy 02: Taking on Challenges for Growth (Strengthening of Consulting) Aim to strengthen consulting capabilities by restructuring the corporate sales framework and standardizing Aim sales activities, thereby addressing the issues that corporate and individual customers are facing and contr
Slide 22: Basic Strategy 02: Strengthening of Depository Asset Sales
Basic Strategy 02: Taking on Challenges for Growth (Strengthening of Depository Asset Sales) Aim to increase the consolidated balance of bank and securities investment trusts by 50 billion yen through the Aim enhancement of recurring-revenue businesses and the establishment of customer-oriented bu
Slide 23: Basic Strategy 02: Renewal of Mortgage Strategy
Basic Strategy 02: Taking on Challenges for Growth (Renewal of Mortgage Strategy) Established a solid business model in the previous Medium-term Management Plan. Going forward, change Aim the mortgage strategy by shifting the focus of activities from “quantity” to “quality” Aim to “further impro
Slide 24: Basic Strategy 02: Enhancement of Deposit Transactions
Basic Strategy 02: Taking on Challenges for Growth (Enhancement of Deposit Transactions) Aim Aim to increase deposits essential for building a high-quality portfolio by implementing segment-specific deposit enhancement measures for individual and corporate customers Individual Segment Corporate Segm
Slide 25: Basic Strategy 02: Securities Strategy
Basic Strategy 02: Taking on Challenges for Growth (Securities Strategy) Aim Aim to maximize earnings by flexibly responding to changes in the market environment while restructuring the securities portfolio with a focus on yen-denominated bonds Trend of Yen-Denominated Bond Balance Conceptual imag
Slide 26: Basic Strategy 03: Human Resource Strategy
Basic Strategy 03: Human Resource Strategy Define the Bank’s ideal image of talent and organization both qualitatively and quantitatively through the establishment of a personnel policy Aim Realize a “group of professionals who take on challenges” by developing capabilities and improving engagem
Slide 27: Basic Strategy 04: Digital Transformation
Basic Strategy 04: Digital Transformation (Internal/Group DX & Regional DX) Build a foundation of “a bank that can be relied upon” by promoting paperless operations and workforce Aim streamlining through digital technologies, thereby realizing a flexible branch strategy, workstyle reform across the
Slide 28: Basic Strategy 04: Future to Pursue through Internal/Group DX
Basic Strategy 04: Digital Transformation (Future to Pursue through Internal/Group DX) “Expand non-face-to-face transactions” and “enhance the efficiency of face-to-face transactions” by leveraging Aim digital technologies Achieve DX-driven “transformation of operations and mindsets” by promotin
Slide 29: Basic Strategy 04: Data Utilization
Basic Strategy 04: Digital Transformation (Data Utilization) Aim Aim to enhance operational efficiency and sales capabilities through strengthening the building of a data- driven organization by promoting intra-group data utilization Data Utilization Development of measures based on data utilization
Slide 30: Basic Strategy 05: Governance Structure for Sustainability
Basic Strategy 05: Strengthening of Strategic Foundation (Governance Structure for Sustainability) Enhance the Group’s framework for realizing “sustainability management” by establishing a system in which Aim the Board of Directors oversees the status of sustainability initiatives, including “creati
Slide 31: Basic Strategy 05: Decarbonization of the Group
Basic Strategy 05: Strengthening of Strategic Foundation (Decarbonization of the Group) Promoting decarbonization of facilities, explore a wide range of options, including the use of highly Aim sustainable renewable energy sources, with the aim of achieving net-zero GHG emissions ahead of schedule a
Slide 32: Basic Strategy 05: Cybersecurity
Basic Strategy 05: Strengthening of Strategic Foundation (Cybersecurity) Establish a dedicated department for “cybersecurity response” to strengthen the management framework, Aim aiming to surely protect the assets and information entrusted to the Bank by customers, while maintaining stable operatio
Slide 33: Initiatives to Improve Corporate Value
Initiatives to Improve Corporate Value 33
Slide 34: Initiatives to Improve P/B Ratio
Initiatives to Improve P/B Ratio Aim to enhance corporate value through the implementation of various initiatives under the Medium-term Management Plan “Taking on Challenges for the Future” Logic Tree for P/B ratio Improvement Enhanced interest and Basic Strategy 02 Taking on ...p. 20 Enhanced earni
Slide 35: Capital Allocation
Capital Allocation Achieve “efficient asset allocation” in terms of both funding and capital to enhance profitability while maintaining soundness and making effective use of management resources Capital Allocation Increase loans to medium- Increase structured finance Net income Shareholder returns s
Slide 36: Cross-Shareholdings
Cross-Shareholdings Aim to enhance corporate value by reducing cross-shareholdings systematically and allocating the capital gains incurred to strategic investments Cross-Shareholdings (Listed Stocks) Tar Systematically reduce cross-shareholdings get by more than 20 billion yen on a market New Mediu
Slide 37: Shareholder Returns
Shareholder Returns While shareholder returns are based on long-term stable dividends, consider flexible treasury share repurchases targeting a dividend payout ratio of 40% Shareholder Returns Aim to achieve a dividend payout ratio of 40% New Medium-term Tar Management Plan period get while maintain
Slide 38: Initiatives to Improve PER
Initiatives to Improve PER Aim to enhance initiatives for sustainable management, communication of such efforts, and response to external evaluation institutions. Create numerous opportunities to eliminate information asymmetry with stakeholders, thereby promoting a better understanding of the Bank’
Slide 39: Local Sustainability Initiatives
Local Sustainability Initiatives 39
Slide 40: Promotion of Regional DX
Basic Strategy 01: Basic Strategy 04: TOPIX Promotion of Regional DX Creation of Social Value Digital Transformation Strengthened the framework for promoting regional DX by newly acquiring two system-related companies as subsidiaries Promote regional DX by offering a broader range of services th
Slide 41: Initiatives for Realizing a Circular Regional Economy
TOPIX Basic Strategy 01: Initiatives for Realizing a Circular Regional Economy Creation of Social Value Concluded the Export Promotion Partnership Agreement with the Tokai Regional Agricultural Administration Office Inbound strategy Make Mie a leading halal-friendly prefecture Focusing on the Muslim
Slide 42: Circular Use of Regional Forest Resources
TOPIX Circular Use of Regional Basic Strategy 01: Basic Strategy 05: Forest Resources Creation of Social Value Strengthening of Strategic Foundation Purchase “Matsusaka City Forest Management for the Future J-Credits” Implement initiatives that contribute to reducing GHG emissions or increasing GHG
Slide 43: Appendix
Appendix 43
Slide 44: Strengths of Our Sales Foundation
Strengths of Our Sales Foundation Mie Prefecture Number of Branches As of May 31, 2025 145 in Japan Semiconductor Real Homeownership (102 locations) industry economic ratio Shipments of growth rate (2020) * Overseas bases products, etc. (2021) (2012–2021 average) Shanghai Representative Office 1.9 t
Slide 45: Human Capital Indicators
Human Capital Indicators Human capital targets of the Previous Medium-term Human capital targets of the New Medium-term Management Plan Management Plan Results in Target for FY2024 FY2024 No. of personnel 450 with professional 451 persons 100% of the plan persons qualifications Cumulative no. of No.
Slide 46: Governance Structure
Governance Structure Appointment and Diversification of Outside Officers Ratio of outside officers * Scheduled for June 30, 2025 Outside Inside Female Male Ratio of outside Ratio of outside Ratio of outside directors corporate auditors officers 3 female officers 6 persons 2 persons 8 persons [Futu
Slide 47: Group Companies
Group Companies Verification and organizing services Hyakugo Business Service for cash, etc. Company Limited Storage, management, and printing- Hyakugo Heartful Service related services for documents and Company Limited ledgers, etc. Consolidated Hyakugo Property Research Investigation and assessmen
Slide 48: Appendix (Supplementary Materials for Financial Results)
Appendix (Supplementary Materials for Financial Results) 48
Slide 49: Impact of Rising Yen Interest Rates
Impact of Rising Yen Interest Rates Yen balance sheet Impact of a 0.50% increase in yen interest rates on (bank’s non-consolidated basis) interest income (annual) Impact simulation ■Summary of yen balance sheet Annual impact in amount Interest income is (as of March 31, 2025) 3rd year expected to
Slide 50: Deposits (including negotiable certificates of deposit)
Deposits (including negotiable certificates of deposit) Total deposits (average balance) Corporate deposits (average balance) (100 million yen) Mie Prefecture Aichi Prefecture Tokyo, Osaka (100 million yen) 13,733 12,339 12,443 12,661 Mie Prefecture Aichi Prefecture Tokyo, Osaka 11,649 503 240 199 1
Slide 51: Depository assets
Depository assets Contract amount of acquired depository assets Depository assets balance (incl. Hyakugo Securities) (incl. Hyakugo Securities) (100 million yen) (100 million yen) Investment trusts Financial instrument brokerage Investment trust balance Securities brokerage Insurance Hyakugo Securit
Slide 52: Loans
Loans Total loans (average balance) Housing loans (average balance) (100 million yen) Mie Prefecture Aichi Prefecture Tokyo, Osaka (100 million yen) Mie Prefecture Aichi Prefecture Tokyo, Osaka 23,174 Ratio of loans to SMEs to total loans (based on year-end balance; “SMEs” includes 20,895 611 indivi
Slide 53: Securities Investments
Securities Investments Securities balance Gains and losses on securities (100 million yen) 2,264 (100 million yen) Government bonds Municipal bonds Stocks Bonds Other Corporate bonds Stocks * “Other” includes foreign securities 21 <Breakdown of “Other”> and investment trusts. 1,377 JPY-denominated f
Slide 54: Equity ratio
Equity ratio (100 million yen) Equity capital, shareholders’ equity, and equity ratio Equity capital Shareholders’ equity Equity ratio (100 million yen) end of end of end of 3/23 3/24 3/25 12.23% 12.22% 11.92% Equity capital (For equity ratio 2,595 2,682 2,749 9.84% calculation purposes) 3,123 3,011
Slide 55: Integrated Risk Management
Integrated Risk Management Risk is kept within an appropriate range according to the Bank’s operating capabilities based on integrated risk management Compared with core capital of 275.0 billion yen and allocable capital of 182.7 billion yen, actual amount of risk is 83.6 billion yen (100 million ye
Slide 56: Outstanding Non-performing Loans by Disclosure Standard and Coverage
Outstanding Non-performing Loans by Disclosure Standard and Coverage Loans disclosed under the Financial Reconstruction Act and risk-managed claims (target: total credit exposure) Non-performing Loans under Internal Assessment Standard (target: total credit exposure) *Special attention loans, loans
Slide 57: Loan Delinquent Balances & Default Rates
Loan Delinquent Balances & Default Rates Housing loan delinquency and default status Delinquent unsecured loan balance and rate Delinquent loan balance and rate (Balance: 100 million yen) Specific-purpose loan (Balance: 100 million yen) Delinquent loan balance Delinquency rate Delinquent loan ba
Slide 58: Please direct inquiries concerning this document to
Please direct inquiries concerning this document to: Corporate Planning Division, The Hyakugo Bank, Ltd. Watanabe / Bessho at Public Relations & Investor Relations Department ir@hyakugo.co.jp https://www.hyakugo.co.jp/ The information concerning entities other than the Bank contained in this documen