Chugin Financial Group,inc. · TSE:5832

Chugin Financial Group,inc — FY2023 Earnings Presentation

53 slides from Chugin Financial Group,inc's earnings presentation, Mar 1, 2024

  1. Slide 1: FY2023 Earnings Results Briefing (References)

    FY2023 Earnings Results Briefing (References) Our challenges build our future. Chugin Financial Group, Inc.

  2. Slide 2: Table of Contents of References

    Table of Contents of References Economic Structure of Okayama Prefecture Management Indicators, etc. for Chugin Financial Group, Inc. 岡山県の経済規模 Economic Scale of Okayama Prefecture 4 利益総括表 Income Table Comprehensive 22 岡山県の産業構造 Industrial Structure of Okayama Prefecture 6 自己資本比率の推移 Capital Adequacy R

  3. Slide 3: Economic Structure of Okayama Prefecture

    Economic Structure of Okayama Prefecture

  4. Slide 4: Economic Scale of Okayama Prefecture

    Economic Scale of Okayama Prefecture Nationwide Items Results Rank Source Survey date share (%) Nationwide Survey on Area Area 7,114 km2 1.9 17 Jan. 2024 by Municipality Population, Demographics, and Number of Households Population 1,865,000 1.5 20 Jan. 2023 Based on the Basic Resident Register Popu

  5. Slide 5: Economic Scale of Okayama Prefecture

    Economic Scale of Okayama Prefecture (Trillion yen) (%) 110 都道府県別名目県内総生産額と対前年増加率 Gross Domestic 都道府県別名目県内総生産額と対前年増加率 Product by Prefecture at Current Prices and YoY Change 45 5 YoY growth (Right scale) 40 35 Gross prefectural domestic 30 product at current prices 0 (Left scale) 25 20 15 -5 10 5 0 -1

  6. Slide 6: Industrial Structure of Okayama Prefecture (1)

    Industrial Structure of Okayama Prefecture (1) Percentage mix of gross domestic product by economic activity Health and Professional/science hygiene, technology, business Construction Education support services Finance, social welfare insurance Manufacturing Real estate Wholesale, Transport, postal

  7. Slide 7: Industrial Structure of Okayama Prefecture (2)

    Industrial Structure of Okayama Prefecture (2) Proportion of incoming/outgoing transfer (net) of goods and services in gross prefectural domestic product (at current prices) (%) 20.0 Okayama 15.0 Hiroshima 10.0 5.0 Kagawa 0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Annual Report on Pref

  8. Slide 8: Growth Infrastructure and Potential of Okayama Prefecture (1)

    Growth Infrastructure and Potential of Okayama Prefecture (1) Population and number of households of the Chugoku-Shikoku region (Persons, households) Tottori Tottori Shimane Shimane Okayama Okayama Hiroshima Hiroshima Yamaguchi Tokushima Yamaguchi Tokushima Kagawa Kagawa Ehime Ehime Kochi Kochi (%)

  9. Slide 9: Growth Infrastructure and Potential of Okayama Prefecture (2)

    Growth Infrastructure and Potential of Okayama Prefecture (2) Future population estimates of Okayama Prefecture (Thousand people) 2,000 Estimates 1,900 1,888 1,832 1,800 1,774 1,713 1,700 1,646 1,600 1,578 1,510 1,500 2020 2025 2030 2035 2040 2045 2050 Source: Regional Population Projections for Jap

  10. Slide 10: Growth Infrastructure and Potential of Okayama Prefecture (3)

    Growth Infrastructure and Potential of Okayama Prefecture (3) Cross points of land transportation in Western Japan Two east-west highways (SANYO EXPWY and CHUGOKU EXPWY) and a highway from the Sea of Japan to the Pacific Ocean via the Seto Inland Sea intersect at two locations in the prefecture. Con

  11. Slide 11: Growth Infrastructure and Potential of Okayama Prefecture (4)

    Growth Infrastructure and Potential of Okayama Prefecture (4) Freight forwarding volume in the Chugoku-Shikoku region (Million ton-km) 千ドル 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Tottori Shimane Okayama Hiroshima Yamaguchi Tokushima Kagawa Ehime Kochi Source: FY2022 Annual Report of Road Transpo

  12. Slide 12: Growth Infrastructure and Potential of Okayama Prefecture (5)

    Growth Infrastructure and Potential of Okayama Prefecture (5) High potential for renewable energy generation by taking advantage of the prefecture’s many sunny days Weather Okayama Prefecture is a “sunny prefecture” blessed with a mild climate and little rainfall. Okayama 276.7 days * Days with less

  13. Slide 13: Economic Conditions of Okayama Prefecture

    Economic Conditions of Okayama Prefecture

  14. Slide 14: Local Economic Trends (1)

    Local Economic Trends (1) The economy of Okayama Prefecture is gradually recovering against the backdrop of an increase in the flow of people, etc. Collapse of Lehman Sub-prime mortgage crisis COVID-19 transition to BOJ quantitative easing Consumption tax hike Consumption tax hike Simultaneous terro

  15. Slide 15: Local Economic Trends (2)

    Local Economic Trends (2) Industrial production: Slowdown is seen in some areas. [Industrial production index] (2020 indexed at 100; seasonally adjusted) 130 120 110 100 90 80 2019/1 2020/1 2021/1 2022/1 2023/1 2024/1 Source: Okayama Prefecture Statistical Analysis Section Exports: Signs of bottomin

  16. Slide 16: Local Economic Trends (3)

    Local Economic Trends (3) Capital investment: Picking up mainly in the manufacturing industry [YoY change in capital investment] Okayama Nationwide （％） Manufacturing Non- manufacturing Total Manufacturing Non- manufacturing Total FY2021 result -10.0 9.0 -3.8 1.1 -1.9 -0.8 FY2022 result 14.6 25.0 18.

  17. Slide 17: Local Economic Trends (4)

    Local Economic Trends (4) Consumer spending: Gradually recovering against the backdrop of an increase in the flow of people, etc. [Department store and supermarket sales (all stores; YoY)] (%) 15 10 5 0 -5 -10 -15 2019/1 2020/1 2021/1 2022/1 2023/1 2024/1 Source: Chugoku Bureau of Economy, Trade and

  18. Slide 18: Local Economic Trends (5)

    Local Economic Trends (5) Housing investment: Weakening due to rising construction costs, etc. [New housing starts (six-month moving average)] (Units) 1,400 1,200 1,000 800 600 2019/1 2020/1 2021/1 2022/1 2023/1 2024/1 Source: MLIT [Rental housing starts (six-month moving average)] (Units) 600 500 4

  19. Slide 19: Local Economic Trends (6)

    Local Economic Trends (6) Employment situation: Gradually picking up [Jobs-to-applicants ratio (seasonally adjusted)] (Times) 2.2 2.0 1.8 1.6 1.4 1.2 2019/1 2020/1 2021/1 2022/1 2023/1 2024/1 Source: Employment Service Section, Okayama Labor Bureau, Ministry of Health, Labour and Welfare [Total sum

  20. Slide 20: Local Economic Trends (7)

    Local Economic Trends (7) Land prices: Recovering [Official land price (YoY)] (%) 3.0 2.0 Residential Residential area 1.0 area Commercial Commercial area 0.0 area -1.0 -2.0 -3.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Hilly and Mountainous Areas Development Division, Okayama

  21. Slide 21: Management Indicators, etc. for Chugin Financial Group, Inc.

    Management Indicators, etc. for Chugin Financial Group, Inc. (Note) As the Company was established on October 3, 2022, there are no consolidated figures for FY2021 (and as of March 31, 2022). However, for reference purposes, the consolidated figures for FY2021 (and as of March 31, 2022) of the forme

  22. Slide 22: Summary of Earnings

    Summary of Earnings 【Consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 (Million yen) 1H 1H 1H 1H 1H Ordinary revenue 63,780 127,318 58,173 116,976 60,594 128,565 89,629 179,860 88,355 184,661 Banking revenue 59,142 117,217 54,772 107,330 56,758 116,870 71,760 157,41

  23. Slide 23: Capital Adequacy Ratio

    Capital Adequacy Ratio 【Consolidated】（％,Billion yen） 1H FY2020 FY2020 1H FY2021 FY2021 1H FY2022 FY2022 1H FY2023 FY2023 Overall capital adequacy ratio 13.02 13.50 13.90 13.83 12.76 12.87 12.20 14.05 Tier 1 ratio 13.02 13.25 13.65 13.57 12.50 12.64 11.98 13.70 Tier 1 ratio including common shares 13

  24. Slide 24: Capital Allocation and Integration Risks, etc.

    Capital Allocation and Integration Risks, etc. FY2023 result FY2024 plan [Allocation source] (billion yen) [Allocation source] (billion yen) Figures in parentheses represent Acceptable risk (1) Allocated capital comparisons with FY2023. level (1) Allocated capital 497.5 Integration 510.2 risk Integr

  25. Slide 25: Allocated Capital Usage and Assumptions for Risk Amount Calculation

    Allocated Capital Usage and Assumptions for Risk Amount Calculation The capital allocation and integration risk in FY2023 and the capital allocation in FY2024 are as shown in the table below. （単位：億円） (billion yen) 2023年度 FY2023 2024年度 FY2024 配賦額 Allocation amount リスク量（2024年3月末） Risk amount (Mar. 31,

  26. Slide 26: Status of Group Companies

    Status of Group Companies Business line Effective equity FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （million yen,%） ratio 1H 1H 1H Ordinary income 6,534 13,339 7,006 17,461 5,558 12,080 The Chugin Lease Company, Leasing 100 Ordinary profit 24 248 188 3,640 185 821 Limited* Net income 47 195 160 3,520

  27. Slide 27: Key Press Releases

    Key Press Releases [FG] Conclusion of "Agreement concerning Comprehensive Cooperation related to Regional Revitalization SDGs" 2023 Oct. 4 between Chugin Financial Group and Kagamino-cho Oct. 6 [BK] Signing of the “Poseidon Principles” Oct. 13 [FG] Initiative to Collect and Recycle Clear Folders [FG

  28. Slide 28: Management Indicators, etc. for The Chugoku Bank

    Management Indicators, etc. for The Chugoku Bank

  29. Slide 29: Summary of Earnings (1)

    Summary of Earnings (1) 【Non-Consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 (Million yen) 1H 1H 1H 1H 1H Ordinary revenue 56,143 110,829 49,824 99,765 51,869 110,337 82,338 164,467 79,483 165,786 Banking revenue 51,457 100,630 46,415 90,108 47,999 98,558 64,429 1

  30. Slide 30: Summary of Earnings (2)

    Summary of Earnings (2) 【Non-consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Million yen） 1H 1H 1H 1H 1H Bond-related gains/losses 1,084 -524 822 -552 -447 -2,949 -15,362 -19,778 -1,279 -776 Gains on sales of bonds 1,727 3,026 1,407 2,496 3,506 9,400 8,817 23,487

  31. Slide 31: Breakdown of Ordinary Revenue

    Breakdown of Ordinary Revenue 【Non-consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY20222 FY2023 FY2023 （Million yen） 1H 1H 1H 1H 1H Ordinary revenue 56,143 110,829 49,824 99,765 51,869 110,337 82,338 164,467 79,483 165,786 Banking revenue 51,457 100,630 46,415 90,108 47,999 98,558 6

  32. Slide 32: Breakdown of Ordinary Expenses

    Breakdown of Ordinary Expenses 【Non-consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Million yen） １H １H １H １H １H Ordinary expenses 43,899 95,353 38,712 80,720 37,521 86,928 63,113 136,953 66,499 139,098 Banking expenses 39,680 82,776 35,161 70,881 34,342 78,252 59

  33. Slide 33: Breakdown of Expenses

    Breakdown of Expenses 【Non-consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Million yen） 1H 1H 1H 1H 1H Expenses (1) 27,397 54,010 26,404 52,783 25,914 51,986 25,330 51,316 26,069 52,881 Personnel expenses 14,164 28,204 13,794 27,725 14,022 28,037 14,103 27,843 13

  34. Slide 34: Principal Returns

    Principal Returns 【Non-consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （％） 1H 1H 1H 1H 1H １．Interest-bearing asset yield 1.02 0.98 0.84 0.79 0.77 0.72 0.93 1.01 1.28 1.34 Loan yield 1.06 1.04 0.92 0.90 0.87 0.87 1.00 1.11 1.41 1.46 Securities yield 1.20 1.10 0.91

  35. Slide 35: Major Accounts (Year-end Balance): Assets

    Major Accounts (Year-end Balance):Assets 【Non-consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total assets 8357.9 8113.6 8741.7 9122.6 9854.2 10177.9 9660.9 9803.4 10265.5 10708.3 Management account 7527.2 7391.1 7752.0 7958.6 8113.6 8

  36. Slide 36: Major Accounts (Year-end Balance): Liabilities and Net Assets

    Major Accounts (Year-end Balance):Liabilities and Net Assets 【Non-consolidated】 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total liabilities and net assets 8357.9 8113.6 8741.7 9122.6 9854.2 10177.9 9660.9 9803.4 10265.5 10708.3 Total liabiliti

  37. Slide 37: Major Accounts (Average Balance): Assets

    Major Accounts (Average Balance):Assets [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total assets 8173.8 8216.0 8563.5 8754.4 9333.7 9639.6 10020.7 9890.5 9966.2 10146.6 Management account 7760.2 7816.7 8128.4 8286.3 8714.3 919

  38. Slide 38: Major Accounts (Average Balance): Liabilities and Net Assets

    Major Accounts (Average Balance):Liabilities and Net Assets [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Total liabilities and net assets 8173.8 8216.0 8563.5 8754.4 9333.7 9639.6 10020.7 9890.5 9966.2 10146.6 Total liabilities

  39. Slide 39: Deposits (Year-end Balance)

    Deposits (Year-end Balance) [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Okayama 4971.2 5186.3 5485.5 5726.0 5725.9 5938.8 5903.5 6102.0 6058.3 6220.6 Individuals 3761.0 3832.7 3994.1 4108.1 4203.3 4294.5 4345.0 4374.8 4407.0 4

  40. Slide 40: Deposits (Average Balance)

    Deposits (Average Balance) [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Okayama 5000.8 5016.6 5403.1 5465.3 5746.8 5766.8 5982.4 5967.1 6066.4 6058.1 Individuals 3768.1 3791.5 3945.7 4003.3 4176.1 4219.3 4336.2 4356.6 4399.4 44

  41. Slide 41: Loans (Year-end Balance)

    Loans (Year-end Balance) [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H General loans 4281.1 4408.7 4565.9 4666.3 4679.2 4808.7 4957.7 5115.5 5336.4 5776.3 Large companies 741.1 765.9 814.9 834.4 805.3 851.9 873.1 954.1 996.1 109

  42. Slide 42: Loans (Average Balance)

    Loans (Average Balance) [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H General loans 4274.4 4311.3 4495.4 4561.0 4673.5 4699.2 4862.2 4941.1 5178.4 5290.7 Local development 2081.9 2100.8 2192.2 2224.0 2228.9 2224.3 2228.7 2268.6

  43. Slide 43: Loans by Industry (Year-end Balance)

    Loans by Industry (Year-end Balance) [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Domestic branches 4761.6 4884.5 5035.8 5122.1 5134.3 5244.6 5387.6 5529.3 5756.5 6181.6 Manufacturing 644.3 673.1 703.4 712.4 672.8 698.1 683.6 7

  44. Slide 44: Loans by Industry (Composition Ratio)

    Loans by Industry (Composition Ratio) [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 1H 1H 1H 1H 1H Domestic branches 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Manufacturing 13.5% 13.8% 14.0% 13.9% 13.1% 13.3% 12.7% 13.6% 12.9% 12

  45. Slide 45: Market Shares of Deposits

    Market Shares of Deposits [Year-end balance] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （％） 1H 1H 1H 1H 1H Okayama Chugoku Bank 49.2 49.8 49.8 50.3 50.4 51.1 51.2 51.7 51.4 51.3 Other banks 50.8 50.2 50.2 49.7 49.6 48.9 48.8 48.3 48.6 48.7 Regional banks except for Chugoku

  46. Slide 46: Market Share of Loans

    Market Share of Loans [Year-end balance] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （％） 1H 1H 1H 1H 1H Okayama Chugoku Bank 42.6 42.8 42.8 42.9 43.2 43.4 43.6 43.3 44.3 46.0 Other banks 57.4 57.2 57.2 57.1 56.8 56.6 56.4 56.7 55.7 54.0 Regional banks except for Chugoku Ban

  47. Slide 47: Securities

    Securities Balance by type [Non-consolidated] FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 FY2022 FY2023 FY2023 （Billion yen） 1H 1H 1H 1H 1H Year-end balance 2458.7 2345.1 2391.3 2622.5 2565.3 2509.8 2515.4 2319.2 2366.2 2589.9 JGBs 609.1 653.4 682.7 756.5 676.2 694.2 715.4 564.4 563.8 673.5 Mun

  48. Slide 48: Balance and Durations of Securities by Remaining Period

    Balance and Durations of Securities by Remaining Period Outstanding balance by remaining period to maturity for yen-denominated Securities 10,000 （Billion yen） FY2019 9,000 FY2020 FY2021 8,000 FY2022 7,000 FY2023 6,000 5,000 4,000 3,000 2,000 1,000 0 1year or less More than More than More than More

  49. Slide 49: Handling of Housing Loans

    Handling of Housing Loans [Loans executed by interest type (new houses + refinancing)] [Breakdown of use of loans executed] （％） 140 Long-term fixed rate （Billion yen） Refinancing, etc. 10-year fixed rate 5-year fixed rate 8.2 3-year fixed rate 120 Floating New houses 91.8 100 Total loans executed du

  50. Slide 50: Non-performing Loans

    Non-performing Loans Loans disclosed based on the Financial Reconstruction Act [Non-consolidated] End of End of End of End of End of End of End of End of End of End of （Million yen） Sep.2019 Mar.2020 Sep.2020 Mar.2021 Sep.2021 Mar.2022 Sep.2022 Mar.2023 Sep.2023 Mar.2024 Bankrupt/de facto bankrupt l

  51. Slide 51: Transition of Debtor Categories: 1 year

    Transition of Debtor Categories：1 year (Upper level: Number of debtors; Lower level: Value (Billion yen)) Favorable End of Mar.2024 Deterio-ration turnaround Other loans Manage-ment Near De facto Other Performing requiring Bankrupt required bankruptcy bankruptcy (See Note) attention Performing 155,4

  52. Slide 52: Transition of Debtor Categories: 1 year (Composition)

    Transition of Debtor Categories: 1year (Composition) (Upper level: Number of debtors; Lower level: Value (Billion yen)) Favorable End of Mar.2024 Deterio-ration turnaround Other loans Manage-ment Near De facto Other Performing requiring Bankrupt required bankruptcy bankruptcy (See Note) attention Pe

  53. Slide 53: Chugin Financial Group, Inc.

    Our challenges build our future. Chugin Financial Group, Inc. For inquiries regarding this document, please contact: Management Planning Department, Chugin Financial Group, Inc. (Shimizu or Matsuo) TEL: +81-86-234-6519 Email: souki01@chugin.jp

Chugin Financial Group — FY2023 Earnings Presentation on 6ix