Kiyo Bank, Ltd. · TSE:8370
Kiyo Bank — The Kiyo Bank — FY2024 Earnings Presentation
32 slides from Kiyo Bank's earnings presentation, Mar 31, 2025
Slide 1: Financial Results Briefing Materials for the Year Ended March 31, 2025
Financial Results Briefing Materials for the Year Ended March 31, 2025 Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevai. TSE Prime Mark
Slide 2: Contents
Financial Results Briefing for the Year Ended March 31, 2025 Contents 1 01_Financial Results Overview 03_Initiatives Aimed at Increasing Corporate Value Overview of Financial Results for the Year Ended March PBR・ROE P.20 P.4 31, 2025 Factors in Change in Ordinary Profit P.5 Target ROE Index P.21 Loa
Slide 3: Key Message
Financial Results Briefing for the Year Ended March 31, 2025 Key Message 2 1 2 3 Performance Target Returns to Trend indicators Shareholders ⚫ Consolidated profit ⚫ We revised major KPIs in the 7th ⚫ Due to an upturn in business medium-term management plan performance, we increased the 17.6 billion
Slide 4: 01 Financial Results Overview
3 01 Financial Results Overview
Slide 5: Overview of Financial Results for the Year Ended March 31, 2025
01_Financial Results Overview Overview of Financial Results for the Year Ended March 31, 2025 4 Core business revenue trended well centered on an increase in loan interest, and both revenue and profit increased significantly. Comparison YoY Result Non-consolidated (Unit: 100 million yen) FY2023 FY20
Slide 6: Factors in Change in Ordinary Profit
01_Financial Results Overview Factors in Change in Ordinary Profit 5 Core business revenue drove an increase in profit, and we improved our securities portfolio based on various profits. (100 million yen) Significant increase in profit centered on SME transactions Securities-related profit or loss N
Slide 7: Loans Balance and Yield
01_Financial Results Overview Loans Balance and Yield 6 The loan balance increased steadily centered on the Osaka area, and yields also reversed, increasing for the first time in 17 years. Loan balance Business loans balance (by area) In Wakayama Prefecture In Osaka Prefecture Nara Prefecture, Tokyo
Slide 8: Balance of Deposits, etc., and Yield
01_Financial Results Overview Balance of Deposits, etc., and Yield 7 The balance increased centered on the corporate sector of the Osaka area, and we reinforced highly sticky deposits by promoting main banking relationships. Balance of deposits, etc. (by type) Balance of deposits, etc. (by area) In
Slide 9: Net fees and commissions
01_Financial Results Overview Net fees and commissions 8 Net fees and commissions, trended strongly centered on the business sector, and we reached a record high profit. Breakdown of fees related to business transactions Net fees and commissions (including coupon swaps) M&A Business matching Paid-fo
Slide 10: Securities
01_Financial Results Overview Securities 9 Valuation losses on yen bonds increased in association with increases in domestic interest rates, but yields increased due to portfolio improvements. Balance of securities (based on acquisition cost) Valuation profit or loss (other securities) ⚫ Yen-denomin
Slide 11: Securities_Interest Rate Risk
01_Financial Results Overview Securities_Interest Rate Risk 10 We improved yields significantly by selling low-yield bonds. Yen-denominated bonds Quantity of risk (100 million yen/10 BPV) Duration (years) Average yield (%) Duration 33 After considering yen bond hedges 0.58 30 33 7.6 0.44 6.7 6.3 6 0
Slide 12: Expenses and OHR
01_Financial Results Overview Expenses and OHR 11 Cost control aimed at appropriate OHR and positive investments in the human capital that will act as the engine of growth. Expenses and OHR (gross business profit basis) Taxes 120.7% OHR = expenses / gross business profit × 100 Non-personnel expenses
Slide 13: Credit Costs and Equity Capital Ratio
01_Financial Results Overview Credit Costs and Equity Capital Ratio 12 Equity capital ratio trended within the plan forecast after we recorded a reversal of credit costs in association with the change in the allowance method. Credit costs Equity capital ratio (consolidated) YoY Equity capital amount
Slide 14: Revision of the 7th Medium-Term Management Plan KPI
01_Financial Results Overview Revision of the 7th Medium-Term Management Plan KPI 13 We expect to achieve ROE of 8% in the final year of the medium-term management plan through the reinforcement of core business revenue. Review of medium-term management plan KPI (policy rate scenario: 0.5%) Final ye
Slide 15: 02 Sources of Corporate Value
14 02 Sources of Corporate Value
Slide 16: Management Strategy_Strategy by Area
02_Sources of Corporate Value Management Strategy_Strategy by Area 15 Balanced branch development and sales strategies in accordance with area characteristics Management foundations Activity weight image by business division Osaka Prefecture Support Economic scale Branch network Deposits and loans O
Slide 17: Management Strategy_Core Customer Strategy
02_Sources of Corporate Value Management Strategy_Core Customer Strategy 16 We will allocate management resources strategically and aim for the co-creation of value with customers and maximization of the bank’s revenue. Core customer strategy Number of core customers ⚫ We introduced a core customer
Slide 18: Management Strategy_Core Customer Strategy
02_Sources of Corporate Value Management Strategy_Core Customer Strategy 17 We aim to secure the stable revenue and further expansion of core business by promoting customers to designate us as their main lender. Customers for whom we are main lender Teikoku Databank, Main Bank Survey* Subjects Custo
Slide 19: Management Strategy_Activities to Support the Strategy
02_Sources of Corporate Value Management Strategy_Activities to Support the Strategy 18 We will concentrate management resources on the SME sector to promote main banking relationships. Purpose of promoting main banking relationships Example system for promoting main banking relationships Co-creatio
Slide 20: 03 Initiatives Aimed at Increasing Corporate Value
19 03 Initiatives Aimed at Increasing Corporate Value
Slide 21: PBR・ROE
03_Initiatives Aimed at Increasing Corporate Value 20 PBR・ROE The bank’s ROE is the 3rd highest among regional banks and the stock price is tending to increase following changes in the shareholder return policy. Trend in ROE (consolidated) Regional bank ROE and PBR 1 (%) 8.03 7.46 6.37 6.54 0.8 Actu
Slide 22: Target ROE Index
03_Initiatives Aimed at Increasing Corporate Value Target ROE Index 21 We revised the ROE targeted in the medium to long-term “10% or more” against the backdrop of strong core business revenue. 6th medium-term management plan 7th medium-term management plan Medium to long-term target Final year of t
Slide 23: Logic Tree
03_Initiatives Aimed at Increasing Corporate Value Logic Tree 22 We are aiming to achieve a PBR of 1x or more as soon as possible by linking the logic tree with management strategy. Logic Tree Management strategy Rebuilding of the loan portfolio conscious of RORA penetration Strengthening of RORA pr
Slide 24: Initiatives for the Improvement of ROE_Reallocation of Capital to Growth Areas
03_Initiatives Aimed at Increasing Corporate Value Initiatives for the Improvement of ROE_Reallocation of Capital to Growth Areas 23 We will raise the target for the reduction of cross-shareholdings and expand investment for growth. Review of the policy for the reduction of cross-shareholdings Estab
Slide 25: Initiatives Aimed at Increasing ROE_Reinforcement of Core Business Revenue
03_Initiatives Aimed at Increasing Corporate Value Initiatives Aimed at Increasing ROE_Reinforcement of Core Business Revenue 24 We are concentrating the investment of management resources in business divisions, centered on SME transactions, and focusing on the acquisition of sticky deposits that su
Slide 26: Initiatives Aimed at Increasing ROE_Trend in RORA
03_Initiatives Aimed at Increasing Corporate Value Initiatives Aimed at Increasing ROE_Trend in RORA 25 RORA is tending to improve steadily, and we are aiming for its further improvement by strengthening measures to penetrate sales branches. ● Solid line : results for FY2024 RORA by major asset Fisc
Slide 27: Initiatives for the Improvement of PER_Human Capital Management
03_Initiatives Aimed at Increasing Corporate Value Initiatives for the Improvement of PER_Human Capital Management 26 We revised the human capital KPI upwards. The human capital ROI engagement score are improving steadily. Human capital KPI Review of human capital KPI FY2024 FY2032 ROI in human capi
Slide 28: Initiatives for the Improvement of PER_130th Anniversary Project
03_Initiatives Aimed at Increasing Corporate Value Initiatives for the Improvement of PER_130th Anniversary Project 27 Issue of RS to employees as part of anniversary project and start on reconstruction of Head Office building. Consideration of issue of transfer-restricted stock (RS) Reconstruction
Slide 29: Initiatives Aimed at Increasing PER_Incubation Facility and Strategic IR
03_Initiatives Aimed at Increasing Corporate Value Initiatives Aimed at Increasing PER_Incubation Facility and Strategic IR 28 We established an incubation facility as part of our sustainability strategy, implemented strategic IR and reflected it in our management strategy. Key Site open Strategic I
Slide 30: Capital Allocation
03_Initiatives Aimed at Increasing Corporate Value Capital Allocation 29 We will aim for the maximization of corporate value by making positive growth investments and returning profits to shareholders. (%) Profit Increase in accumulation risk assets Equity capital ratio < Consolidated > Basel III Di
Slide 31: Returns to shareholders
03_Initiatives Aimed at Increasing Corporate Value Returns to shareholders 30 We announced a progressive dividend with a dividend payout ratio of around 40%, and are implementing positive returns to shareholders. May 2022 Formulation of shareholder November 2023 Change to shareholder November 2024 C
Slide 32: ⚫ This document has been prepared aimed at the provision of information only and
⚫ This document has been prepared aimed at the provision of information only and does not solicit the purchase or sale of any specific securities. ⚫ All or part of the information stated in this document is subject to revision or change without notice. ⚫ This document contains statements regarding f