Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2024 Earnings Presentation
76 slides from Bank Of The Ryukyus,limited's earnings presentation, May 2025
Slide 1: Investor Presentation: Financial Results for FY2024
Investor Presentation Financial Results for FY2024 Received a Grand Prize in the General Category of the 33rd (Fiscal 2024) Bingata Design Contest “Departure” by Sayano Taira
Slide 2: Contents
Contents 4 ■Medium-Term Management Plan 1 ■ Financial Results for the Fiscal Year 2 ■Corporate Value Enhancement Initiatives “Empower 2025” Ended March 31, 2025 Current Situation and Future Vision ････22 Medium-Term Management Plan ････40 Logic Tree for Enhancing Corporate Value ････23 Economic Over
Slide 3: Financial Results for the Fiscal Year Ended March 31, 2025
Financial Results for the Fiscal Year Ended March 31, 2025
Slide 4: Economic Overview of Okinawa Prefecture
Economic Overview of Okinawa Prefecture The recovery is gaining momentum throughout the Okinawan economy, and the prefecture’s economy is in an expansionary trend against the backdrop of strong tourism demand. Business Conditions DI Economic Overview of Okinawa Prefecture (Favorable/Unfavorable) Pro
Slide 5: Financial Summary
Financial Summary In consolidated terms, revenue grew but profit decreased, while for non-consolidated figures revenue and profit both increased. Net income increased year-on-year on both a consolidated and non-consolidated basis. (100 million yen) FY2024 (Ended Bank of the Ryukyu Lease RYUCOM OCS R
Slide 6: Summary of Profit/Loss Trends
Summary of Profit/Loss Trends (Million yen) (Million yen) Mar. 2021 Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Year on Year Profit from Customer Services*1 3,835 5,097 5,691 4,884 4,578 -306 Deposit and loan balance*2 23,249 23,433 23,027 22,872 22,759 -113 Profit from service charges*3 5,775 6,287 6,7
Slide 7: Profit/Loss During the Fiscal Year Ended March 31, 2025
Profit/Loss During the Fiscal Year Ended March 31, 2025 Net income increased as a result of a significant increase in the Trading Division, despite an increase in credit costs mainly due to the absence of a reversal of provision for doubtful accounts. (100 million yen) Net income Factors Behind Year
Slide 8: Profit from Customer Services
Profit from Customer Services Although profit from service charges increased, profit from customer services decreased due to an increase in expenses, especially labor costs, and a decrease in the loan and deposit balance. Note: The loan and deposit balance includes loan-related fees, and the decreas
Slide 9: Profit from Customer Services: Deposits
Profit from Customer Services: Deposits Deposits decreased year on year on the basis of year-end balance, but increased on the basis of average balance during the period. While individual deposits remained strong, the ending balance decreased due to a decline in public funds caused by special factor
Slide 10: Profit from Customer Services: Loans (1)
Profit from Customer Services: Loans (1) Loan balances remained strong and increased year-on-year. The year-end balance exceeded 2 trillion yen, reaching a record high. Interest on loans also increased on the back of higher balances and improved yields. Note: Excluding loan-related fees, interest on
Slide 11: Profit from Customer Services: Loans (2) (Status by Use)
Profit from Customer Services: Loans (2) (Status by Use) The balance increased year-on-year for all uses except for “Loans to local gov’ts, others.” Yields also rose for all loans except for those to individuals. Mortgage loans Syndicated loans (100 million yen) (%) (100 million yen) Balance Interes
Slide 12: Profit from Customer Services: Profit from Service Charges
Profit from Customer Services: Profit from Service Charges Of the three key businesses (corporate consulting, individual consulting, and cashless businesses), the corporate consulting business saw a decrease due to a reactionary decline from large-lot projects in the previous fiscal year, while the
Slide 13: Profit from Customer Services: Expenses
Profit from Customer Services: Expenses Expenses increased due to higher labor costs associated with base-pay increases. Investments in human capital and system-related (strategic projects) investments will continue. Expenses Non-personnel expenses (1) Branch offices (100 million yen) (100 million y
Slide 14: Mechanization Investment Plan
Mechanization Investment Plan In the mechanization investment plan for FY2025, mechanization investment for customer service and profit improvement measures, etc. accounts for approximately 23% of the total investment. Strategic investments will continue. Actual results of FY2024 and the mechanizati
Slide 15: Securities
Securities While JGBs were accumulated against the backdrop of rising domestic interest rates, the balance of securities decreased largely due to redemptions of local government bonds and sales of low-yielding foreign bonds. Gains and losses on investment in securities improved due to sales of stock
Slide 16: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt The general provision for doubtful accounts was converted to a provision due to forward-looking provisions based on an environment of increased uncertainty. Credit costs as a whole increased, partly due to an increase in individual provision for doubtful accou
Slide 17: Reference: Overview of Forward-looking Provisioning
Reference: Overview of Forward-looking Provisioning What is forward-looking What is the purpose of introducing [What is overlay?] provisioning? forward-looking provisioning? It is a method of rationally estimating future This is a method to calculate additional risks based on future macroeconomic It
Slide 18: Capital Adequacy Ratio
Capital Adequacy Ratio The capital adequacy ratio increased both on a non-consolidated and consolidated basis, maintaining the 9% range. Non-consolidated Regulatory Capital and Capital Consolidated Regulatory Capital and Capital Adequacy Ratio Adequacy Ratio (100 million yen) Non-Consolidated Regula
Slide 19: Status of Dividends and Shareholder Returns
Status of Dividends and Shareholder Returns The Company’s basic policy is to pay stable dividends. In view of factors such as the profit situation, the dividend for FY2024 (ended March 31, 2025) was increased by 1 yen. The dividend for FY2025 (ending March 31, 2026) is scheduled to be increased by 2
Slide 20: Forecast for FY2025 (Ending March 31, 2026)
Forecast for FY2025 (Ending March 31, 2026) Although expenses are expected to increase due to improved working conditions, including base-pay increases, as well as expenses incurred in relation to the relocation to the new head office, we expect to see an increase in profits in the fiscal year endin
Slide 21: Corporate Value Enhancement Initiatives
Corporate Value Enhancement Initiatives 21
Slide 22: Current Situation and Future Vision
Current Situation and Future Vision We recognize that ROE is below the level of capital costs. We will continuously endeavor to improve PBR while keeping capital costs in mind, with the aim of achieving the highest ROE among regional banks in the future. (%) 10.0 ROE and Cost of Shareholder’s PBR En
Slide 23: Logic Tree for Enhancing Corporate Value
Logic Tree for Enhancing Corporate Value We aim to improve enterprise value (PBR) by improving ROE with an emphasis on the quality of profits, and improving PER by implementing measures to reduce capital costs through information disclosure, etc. We will build a strategic human resources portfolio t
Slide 24: Impact of Rising Interest Rates on Profit
Enhance RORA [Deposits/Loans/Securities] (Strengthen Profitability) Impact of Rising Interest Rates on Profit If interest rates rise on the assumed interest rate path, earnings are expected to increase, despite a temporary increase in valuation losses. Estimated profit increase with higher interest
Slide 25: Risk-weighted Asset Profitability Improvement
Enhance RORA Risk-weighted Asset Profitability Improvement (Strengthen Profitability) The ALM Committee and the RAF Committee continue to discuss the direction to be taken in line with the nature of the loans. We will strive to maximize profitability relative to risk. Vision for RORA Improvement Ini
Slide 26: Consulting for Corporate Customers
Enhance RORA [Provision of Advanced Financial Services] (Strengthen Profitability) Consulting for Corporate Customers For structured finance, despite a reactionary decline from large-lot deals in the previous fiscal year, all items, including business succession and M&A, remained strong. As the numb
Slide 27: Consulting for Individual Customers: (1) Inheritance-Related
Enhance RORA [Provision of Advanced Financial Services] (Strengthen Profitability) Consulting for Individual Customers: (1) Inheritance-Related Our efforts to address inheritance needs have been recognized, and the number of consultations and contracts remained strong. Going forward, we aim to furth
Slide 28: Consulting for Individual Customers: (2) Assets in Custody
Enhance RORA [Provision of Advanced Financial Services] (Strengthen Profitability) Consulting for Individual Customers: (2) Assets in Custody In addition to the success of measures to strengthen proposal capabilities, the market remained strong and the balance of investment trusts and single-premium
Slide 29: Cashless Business
Enhance RORA [Provision of Advanced Financial Services] Cashless Business (Strengthen Profitability) As both the number of Visa debit cards issued and their availability at card affiliates increased, charges from card users and card affiliates increased. Against the backdrop of the recovery in inbou
Slide 30: New Efforts
Enhance RORA New Efforts (Strengthen Profitability) Aim to strengthen and expand our business foundation and revenue opportunities by taking on the challenges of entering new business areas with the aim of providing advanced financial services. Launch a Corporate Advertisement Efforts for Consulting
Slide 31: Implement Risk-Weight Reduction Measures
Control of Capital Levels Implement Risk-Weight Reduction Measures (Risk-Weighted Asset Control) By refining our Risk Weight (RW) assessment, we have been able to effectively reduce risk assets, thereby contributing to an increase in our capital adequacy ratio. In the future, we aim to transition to
Slide 32: Capital Management
Control of capital levels Capital Management (Effective use of capital) We will define a level at which a capital adequacy ratio of 8% or more can be maintained even in the event of unforeseen circumstances. While bearing in mind the level of capital adequacy ratio, we will increase assets to maximi
Slide 33: Regional Decarbonization Support and ESG Evaluation Improvement
Regional Decarbonization Support and Enhance Corporate Branding (Implement Sustainability Management) ESG Evaluation Improvement Promote initiatives that contribute to increasing economic value by solving social issues, and expand product and service offerings that contribute to solving ESG issues,
Slide 34: Overview of Medium-Term Management Plan Empower 2025
Overview of Medium-Term Management Plan “Empower 2025” 34
Slide 35: Review of Medium-Term Management Plan Value 2023
Overview of Medium-Term Management Plan “Value 2023” Review of Medium-Term Management Plan “Value 2023” [Actual Profits/Losses (non-consolidated)] Management Targets and Review of Value 2023 (100 million yen) Loan and deposit balance Plan 239 Results [Enhance Net Interest Income] 230 228 227 We have
Slide 36: Medium-Term Management Plan Empower 2025: All for Okinawa
Medium-Term Management Plan “Empower 2025”: All for Okinawa Vision of the Bank of Ryukyus Management Philosophy Long-Term Vision Corporate Culture A bank that is valued and trusted A financial group that grows together An “open and vibrant corporate by the local community and with the local communit
Slide 37: Changing Environment and Challenges
Medium-Term Management Plan “Empower 2025”: All for Okinawa Changing Environment and Challenges and What the Bank Should Address Aim to realize our long-term vision by responding strongly and flexibly to drastic changes in the environment External Environment Challenges Faced by Okinawa Environmenta
Slide 38: Empower 2025 Overview
Medium-Term Management Plan “Empower 2025”: All for Okinawa Overview Medium-Term Management Plan “Empower 2025”: All for Okinawa April 2025 – March 2028 (3 Years) Invest resources in growth areas in Okinawa Theme Design Okinawa’s Solve Local Create New Growth Story Challenges Corporate Value Key Str
Slide 39: Financial Indicators
Medium-Term Management Plan “Empower 2025”: All for Okinawa [Profit and Loss Plan During the Medium-Term Management Plan (Non-Consolidated)] Loan and deposit balance Plan (100 million yen) 257 [Loan and Deposit Balance] Management Targets 238 Interest on loans increased and the loan and deposit 227
Slide 40: Medium-Term Management Plan Empower 2025
Medium-Term Management Plan “Empower 2025” 40
Slide 41: Medium-Term Management Plan Empower 2025: Contents
Medium-Term Management Plan “Empower 2025”: Contents ◼ Message from the President ・・・・ 42 ◼ Direction of the Medium-Term Management Plan ➢ Potential of Okinawa ・・・・ 44 ➢ Vision of the Bank of Ryukyus ・・・・ 47 ➢ Changing Environment and Challenges and What the Bank Should Address ・・・・ 48 ➢ Overview of
Slide 42: Message from the President
Message from the President Starting in fiscal year 2025, we will launch a new Medium-Term Management Plan, “Empower 2025.” We have concluded the previous Medium-Term Management Plan, “Value 2023,” ahead of schedule and formulated a new plan. With the arrival of “a world with interest rates” and the
Slide 43: Direction of the Medium-Term Management Plan
Direction of the Medium-Term Management Plan
Slide 44: Potential of Okinawa: (1) Environmental Awareness
Potential of Okinawa: (1) Environmental Awareness Okinawa Prefecture is one of the most demographically stable regions in Japan. In addition, Okinawa’s appeal includes its mild climate and rich natural environment, traditional culture born from trade with Asian countries, and its geographical advant
Slide 45: Potential of Okinawa: (2) Further Growth of Prefectural Industries Centered on Tourism
Potential of Okinawa: (2) Further Growth of Prefectural Industries Centered on Tourism The prefecture’s economy is expected to grow further, centered on tourism-related industries, which are the core industries of Okinawa Prefecture. The opening of a large theme park in the north is expected to trig
Slide 46: Potential of Okinawa: (3) Challenges for New Industrial Development
Potential of Okinawa: (3) Challenges for New Industrial Development Development projects in the cities of Naha, Urasoe, and Ginowan, centered on the vast site planned for base reversion, are attracting attention. To promote such development projects, it is necessary to attract investments and compan
Slide 47: Vision of the Bank of Ryukyus
Vision of the Bank of Ryukyus Management Philosophy Long-Term Vision Corporate Culture A bank that is valued and trusted by A financial group that grows An “open and vibrant corporate the local community and contributes together with the local culture,” where executives and to the development of reg
Slide 48: Changing Environment and Challenges and What the Bank Should Address
Changing Environment and Challenges and What the Bank Should Address Aim to realize our long-term vision by responding strongly and flexibly to drastic changes in the environment External Environment Challenges Faced by Okinawa Environmental Financial deregulation and Responding to a world with Stag
Slide 49: Overview of the New Medium-Term Management Plan
Overview of the New Medium-Term Management Plan Medium-Term Management Plan “Empower 2025”: All for Okinawa April 2025 – March 2028 (3 Years) Invest resources in growth areas in Okinawa Theme Design Okinawa’s Create New Solve Local Challenges Growth Story Corporate Value Key Strategies Strengthen th
Slide 50: Management Indicators
Management Indicators Set financial and strategic indicators and targets to realize the long-term vision Indicators Targets for FY2027 Consolidated Net Income (100 million yen) Consolidated Net Income 9 billion yen 13 11 Financial Indicators Non-Consolidated Net Core 12 billion yen Business Profit N
Slide 51: Key Strategies
Key Strategies
Slide 52: Strengthening Operations for Deposits, Loans, and Securities (Deposit and Loan Enhancement)
Strengthening Operations for Deposits, Loans, and Securities (Deposit and Loan Enhancement) Aim to expand the earnings base by increasing the number of Ryugin fans who use the Bank as their main account and ensuring stable deposit funding, thereby realizing optimal asset management Acquire Sticky De
Slide 53: Strengthening Operations for Deposits, Loans, and Securities (Securities Investment Expansion)
Strengthening Operations for Deposits, Loans, and Securities (Securities Investment Expansion) Establish risk management that integrates deposits, loans, and securities investment divisions, and aim to secure stable earnings in the market through risk -taking that takes into account business managem
Slide 54: Leading the Resolution of Regional Challenges (Individual Consulting)
Leading the Resolution of Regional Challenges (Individual Consulting) Transform into a structure that generates sustainable profits by accumulating and nurturing the assets entrusted by customers through the implementation of a goal-based approach using a variety of points of contact Strengthen Non-
Slide 55: Leading the Resolution of Regional Challenges (Corporate Consulting)
Leading the Resolution of Regional Challenges (Corporate Consulting) Contribute to the creation of future value for Okinawa Prefecture by further evolving the strengths we have cultivated and expanding our efforts to resolve challenges Take on the challenge of creating future value for Okinawa throu
Slide 56: Leading the Resolution of Regional Challenges (Cashless Business)
Leading the Resolution of Regional Challenges (Cashless Business) Contribute to the growth of the prefectural economy while improving convenience for prefectural residents and visitors by creating a cashless island, and expand the trade area by providing payment platforms outside the prefecture Plat
Slide 57: Leading the Resolution of Regional Challenges (Sustainability Initiatives)
Leading the Resolution of Regional Challenges (Sustainability Initiatives) Contribute to the protection of Okinawa’s natural environment and the realization of sustainable local communities by implementing ESG management, including carbon neutral initiatives E (Environment) S (Society) Realize a sus
Slide 58: Increasing and Optimizing Human Capital Investment
Increasing and Optimizing Human Capital Investment Set up an optimal human resource portfolio linked to business strategy and actively invest in human resources needed to build the portfolio Basic Concept of Human Resource Investment for Strategic Human Resource Portfolio Development Development of
Slide 59: Increasing and Optimizing Human Capital Investment
Increasing and Optimizing Human Capital Investment Enhance our competitiveness by positioning specialized talent at the forefront, while developing DX human resources and quickly improving the competitiveness of young employees Internal DX Human Resource Improve over-the-counter Internal circulation
Slide 60: Strengthening Group Collaboration and Utilize Alliances
Strengthening Group Collaboration and Utilize Alliances Expand the Bank’s business base with diverse services, and contribute to the development of Okinawa Prefecture by leveraging the comprehensive strengths of the Ryukyus Group and its wide range of alliances in and outside the prefecture Demonstr
Slide 61: New Efforts
New Efforts Enhance the social value of Okinawa Prefecture as well as the corporate value of our business partners and the Bank through new efforts Expected effects Business Launch / Startups on Okinawa Support for start-up companies Prefecture ◆ Support start-ups and new business ventures of from O
Slide 62: Shareholder Return Measures
Shareholder Return Measures Aiming to sustainably increase corporate value, enhance profitability and improve shareholder returns based on a balance between soundness and growth investment Enhance Shareholder Returns Basic Concept Pursue a total payout ratio of about Ensuring Total Payout Ratio 40%
Slide 63: Summary of Okinawa Economy
i Summary of Okinawa Economy 2) FRIRERAT TI ILS BANK OF THE RYUKYUS GROUP
Slide 64: Tankan/Economic Overview of Okinawa Prefecture
Tankan/Economic Overview of Okinawa Prefecture The prefectural economy is in an expansionary trend. Business Conditions DI (Favorable/Unfavorable) Prospects Economic Overview of Okinawa Prefecture 40 Nationwide Okinawa 35 34 33 ■According to the Tankan’s business conditions DI, 24 15 the economy in
Slide 65: Increase/Decrease in Population and Projected Future Households
Increase/Decrease in Population and Projected Future Households The total population in Okinawa Prefecture has remained nearly unchanged, but declined for the first time since 2022. However, the number of households is likely to continue increasing for now. Projected Okinawa Prefecture Households Po
Slide 66: Number of Tourists, Hotel Occupancy Rates and Room Rates
Number of Tourists, Hotel Occupancy Rates and Room Rates The tourism-related sector is showing increasing expansion due to rising tourism demand. The number of tourists in FY2024 reached the second highest level ever. Occupancy Rates and Room Rates for (No. of Persons) Numbers of Tourists (%) Major
Slide 67: Hotel and Theme Park Opening Plans in the prefecture
Hotel and Theme Park Opening Plans in the prefecture Investment in Okinawa remains strong, and openings, including for luxury hotels, are expected to continue into the future. Opening date Location Hotel name No. of rooms Jul. 2025 Nakijin village JUNGLIA Theme Park Fuchaku, Onna Hotel 2026 PGM Golf
Slide 68: Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies
Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies Regarding the employment situation, the job-openings-to-applicants ratio remains above 1. The number of corporate bankruptcies has been calm. Unemployment Rates and Job- No. of Corporate Bankruptcies and Total Debts (%
Slide 69: Official Land Price and Construction Unit Price
Official Land Price and Construction Unit Price Official land prices increased 7.2% year-on-year on average for all land uses, representing an increase for the twelfth straight year with the rate of change increasing by 1.7 points year-on-year. The growth rate in residential areas was the highest in
Slide 70: Public Construction Contract Amounts and Backlog Amounts
Public Construction Contract Amounts and Backlog Amounts from Construction Orders Public construction contract amounts remain robust. Backlog amounts from construction orders have also remained strong. Public Construction Contract Amounts The Variation Amount of Backlog Amounts (Million yen) 160,000
Slide 71: Numbers of New Housing Construction Projects Started and Consumption Trends
Numbers of New Housing Construction Projects Started and Consumption Trends The number of new housing construction projects started declined slightly from the previous year. Consumption trends remain firm in the retail sector. (Units) Numbers of New Housing Consumption trends (%) 18,000 Construction
Slide 72: About Bank of the Ryukyus
i About Bank of the Ryukyus 2) FRIRERAT TI ILS BANK OF THE RYUKYUS GROUP
Slide 73: Bank of the Ryukyus Overview
Bank of the Ryukyus Overview Company Profile Affiliated Companies Established May 1, 1948 Address 1-7-1 Kumoji, Naha, Okinawa Prefecture Established May 10, 1972 Capital 346 million yen (100% stock ownership by Bank of the Ryukyus) Capital 56.967 billion yen Business Fields Leasing and installment-s
Slide 74: Bank of the Ryukyus History
Bank of the Ryukyus History May 1948 Precursor organization established via the Military Government Ordinance No. 1 Bank of the Ryukyus was originally established on May 1, 1948, as a special banking organization via the Military Government Ordinance, and the U.S. The Bank changes from a special pub
Slide 75: Glossary
Glossary This is an important indicator that the Bank has established that places importance on management strategy, and mainly Profit from Customer indicates profits from customer departments, such as branches. Services Calculated as loan and deposit balance + profit from service charges – expenses
Slide 76: About This Document
About This Document Contact information for questions about this document: General Planning Department, Bank of the Ryukyus, Limited Tel :098-860-3787 Fax :098-862-3672 E-mail :ryugin@ryugin.co.jp The information in this document is on a non-consolidated basis unless otherwise specified. Information