Hyakugo Bank, Ltd. · TSE:8368
Hyakugo Bank — FY2025 Earnings Presentation
52 slides from Hyakugo Bank's earnings presentation, Jun 2, 2026
Slide 1: Presentation for FY2025 Financial Results
Presentation for FY2025 Financial Results Information meeting June 2, 2026 (Securities Code: 8368)
Slide 2: Table of Contents
Table of Contents Outline of FY 3/2026 Financial Results P4 FY 3/2027 Financial Forecasts P 13 Overview of the Medium-term Management Plan P 16 Progress of the Medium-term Management Plan P 17 Initiatives to Improve Corporate Value P 39 Appendix P 44 2
Slide 3: Summary
Summary FY 3/2026 Results / FY 3/2027 Financial Forecasts • FY 3/2026 Results: Consolidated net income attributable to shareholders of the parent increased 48.8% year-on-year • FY 3/2027 Forecasts: Both consolidated and non-consolidated profit are expected to increase, with record-high profit projec
Slide 4: Financial Highlights (Consolidated)
Financial Highlights (Consolidated) Summary of FY 3/2026 Financial Results (100 million yen) FY 3/25 FY 3/26 YoY change (100 million yen) FY 3/25 FY 3/26 YoY change Gross operating income (1) 672 648 (24) Interest and dividend on securities 271 339 +67 Of which, gain and loss from Interest income 66
Slide 5: Interest Income (Non-Consolidated)
Interest Income (Non-Consolidated) An increase in interest on loans and securities contributed to higher interest income of 16.8% year-on-year Factors underlying changes in interest income (head office and all branches) ■ Deposit-loan yields ■ Returns on securities (Domestic) investments (Domestic)
Slide 6: Deposits, Etc. (Non-Consolidated)
Deposits, Etc. (Non-Consolidated) *Including NCDs Deposits, etc. increased 1.7% year-on-year due to an increase in corporate deposits Total deposits (average balance) by area ■ Individual and corporate deposits (average balance) (100 million yen) (100 million yen) +1.7% FY 3/25 FY 3/26 YoY change Mi
Slide 7: Loans (Non-consolidated)
Loans (Non-consolidated) Loans increased 2.5% year-on-year due to growth in housing loans in Aichi Prefecture Total loan balance (average balance) Loan balance by segment (average balance) (100 million yen) (100 million yen) Mie Aichi Tokyo, Osaka Investment Finance Division FY 3/25 FY 3/26 YoY chan
Slide 8: Interest Rate Pass-Through Status (Non-Consolidated)
Interest Rate Pass-Through Status (Non-Consolidated) ■Composition of yen-denominated loans Interest rate pass-through status for business loans Loans linked to Other (overdrafts, market interest etc.) rates FY 3/24 FY 3/25 FY 3/26 1.5% FY 3/24 FY 3/25 FY 3/26 13.5% Loans linked to prime rates (avera
Slide 9: Securities (Non-Consolidated)
Securities (Non-Consolidated) Secured 210.8 billion yen of unrealized gains on securities through portfolio management focused on asset allocation Securities balance ■ Durations and yields <Duration> (Year) <Yield> (%) Government bonds Municipal bonds Corporate bonds Stocks 6.11 5.66 5.67 5.55 5.42
Slide 10: Fees and Commissions (Non-consolidated)
Fees and Commissions (Non-consolidated) Fees and commissions decreased 13.4% year-on-year due to a decrease in housing-loan-related fees resulting from a revision of housing loan acquisition targets Fees and commissions Major factors underlying changes (FY 3/25 → FY3/26) (100 million yen) Corporate
Slide 11: Expenses (Non-Consolidated)
Expenses (Non-Consolidated) Expenses grew 6.3% year-on-year due to the implementation of base salary increases and DX investments Expenses ■ Core OHR (6.49) P (100 million yen) Personnel expenses Non-personnel expenses Taxes 62.24% 63.78% 60.89% 59.61% 56.30% +25 53.12% 458 425 26 401 396 400 387 29
Slide 12: Credit Costs (Non-consolidated)
Credit Costs (Non-consolidated) Decrease in the provision of specific allowance for loan losses caused a 9.9% year-on-year decrease in credit costs Credit costs ■ Non-performing loans ■ Non-performing loans ratio Provision of general allowance for loan losses Provision of specific allowance for loan
Slide 13: FY 3/2027 Forecasts
FY 3/2027 Forecasts Net income is expected to reach a record high for the third consecutive fiscal year on both a consolidated and non-consolidated basis Non-consolidated Consolidated FY 3/27 YoY FY 3/27 YoY (100 million yen) FY 3/26 (100 million yen) FY 3/26 (Forecast) change (Forecast) change Gros
Slide 14: FY 3/2027 Forecasts (Factors Behind Lower Interest Income)
FY 3/2027 Forecasts (Factors Behind Lower Interest Income) ■ Breakdown of interest income Interest and dividend on securities (one-time factors) Interest and dividend on securities (excl. one-time factors) One-time factors affecting interest and Interest on deposits Loan interest dividends on securi
Slide 15: Performance of Major Group Companies
Performance of Major Group Companies Aim to maximize Group earnings by providing integrated and comprehensive financial services across the Group Net income of six sales-related Performance summary of sales-related group companies group companies * Figures are presented on a consolidated basis (afte
Slide 16: Overview of the Medium-term Management Plan
Overview of the Medium-term Management Plan Medium-term Management Plan (April 2025 – March 2029) Medium-term Management Plan: Basic Strategies 01 Creation of 02 Taking on Challenges Social Value for Growth Aim to create economic and Aim to thoroughly streamline social value by taking on the banking
Slide 17: Revision of Financial Targets of Medium-term Management Plan
Revision of Financial Targets of Medium-term Management Plan Revised the financial targets of the Medium-term Management Plan in response to changes in the external environment FY 3/29 Targets (before revision) FY 3/29 Targets (after revision) Results in FY 3/26 * Assumed policy interest rate: 0.50%
Slide 18: Progress on Non-Financial Targets
Progress on Non-Financial Targets FY 3/29 Progress Rate Against Results in Medium-term Management Overview of initiatives Final Targets FY 3/26 Plan Targets Support clients in addressing structural challenges Cumulative Cumulative Number of customer such as business succession, digital transformatio
Slide 19: Regional Economy Topics (Semiconductor Industry in Mie Prefecture)
Regional Economy Topics (Semiconductor Industry in Mie Prefecture) Basic Strategy 01: Creation of Social Value Semiconductor industry in Mie ● Yokkaichi City Applied Materials Japan, Inc. JSR Corporation, Yokkaichi Plant ● Inabe City ● Kuwana City SUZUKI CO., LTD. KIOXIA Corporation, Yokkaichi Plant
Slide 20: New Business Creation Project HYAKUGO INNOVATION LAB.
Basic Strategy 01: New Business Creation Project “HYAKUGO INNOVATION LAB.” Creation of Social Value Solicit employees’ ideas broadly and create businesses that contribute to solving local issues and creating social value ■ Project Objectives ■ Project Summary Solve local issues through new businesse
Slide 21: Solving Local Issues
Basic Strategy 01: Solving Local Issues Creation of Social Value Actively contribute to solving local issues through Hyakugo Bank’s unique network Establish an organizational framework to solve local issues Hyakugo Community needs Local issue interviews Local stakeholders Bank assessment Sustainabil
Slide 22: Support for Aquaculture Operators
Basic Strategy 01: Solving Local Issues Creation of Social Value Initiative Framework Example Support for primary industries in collaboration with startups and group companies Challenges facing aquaculture operations in Mie Prefecture Framework for addressing the challenges Challenges Collaboration
Slide 23: Increasing Deposits
Basic Strategy 02: Taking on Increasing Deposits Challenges for Growth Acquire sticky deposits by approaching customers based on life events and promoting non-face-to-face channels ■ Individual deposits (average (100 million yen) ■ Corporate deposits (average (100 million yen) Becoming the main bank
Slide 24: Increase loans to medium-sized companies and SMEs in the region
Increase loans to medium-sized companies and SMEs Basic Strategy 02: Taking on Challenges for Growth in the region Strengthen the loan business based on business assessments, with a focus on labor-saving and growth investments, thereby supporting the sustainable growth of medium-sized companies and
Slide 25: Investment Finance Sector
Basic Strategy 02: Taking on Investment Finance Sector Challenges for Growth Cross-border loan (XB) / Structured finance (SF) ■ Organizational structure ■ XB: Breakdown by region and industry Central and South America Investment Established in April 2025 as a dedicated division to Other Finance Divi
Slide 26: Strengthening of Consulting
Basic Strategy 02: Taking on Strengthening of Consulting Challenges for Growth Address customers’ challenges and enhance earnings through solution-oriented sales activities ■ Trends in number of business succession consultations* Number of customer management issues solved and number of M&A engageme
Slide 27: Strengthening of Consulting (Support for Automotive Industry)
Strengthening of Consulting Basic Strategy 02: Taking on Challenges for Growth (Support for Automotive Industry) On-site operational improvement consulting by the automotive industry support team Example of on-site operational improvement consulting ■ Overview of the automotive industry support team
Slide 28: Strengthening of Consulting (Subsidy Application Support)
Strengthening of Consulting Basic Strategy 02: Taking on Challenges for Growth (Subsidy Application Support) Support growth of companies and create earnings opportunities through subsidy application support services ■Overview of subsidy application support services Objectives of subsidy application
Slide 29: Housing Loans
Basic Strategy 02: Taking on Housing Loans Challenges for Growth Since FY 3/25, acquisition targets have been strategically revised, and acquisition amounts have remained solid compared to the plan (100 million yen) ■ Housing loans originated ■ Housing loan balance (100 million yen) 3,662 25,024 3,1
Slide 30: Depository Asset Sales
Basic Strategy 02: Taking on Depository Asset Sales Challenges for Growth Aim to improve profitability through the strengthening of stock-based business as the increase in consolidated balance of bank and securities investment trusts under the Medium-term Management Plan is progressing steadily ■ In
Slide 31: Securities Strategy
Basic Strategy 02: Taking on Securities Strategy Challenges for Growth Improve returns on securities investments by increasing holdings of securities, primarily yen-denominated bonds, while selling low-yield yen bonds Status of replacement of low-yield yen bonds * Low-yield yen bonds: Defined as yen
Slide 32: Human Capital Indicators
Basic Strategy 03: Human Human Capital Indicators Resource Strategy Progress on human capital KPIs (as of March 31, 2026) Cumulative no. of personnel No. of personnel who Ratio of female executives who have passed the professional qualification No. of professionals*2 have acquired the IT (posts equi
Slide 33: Personnel System Revisions
Basic Strategy 03: Human Personnel System Revisions Resource Strategy Position human capital as the most important management resource and create an environment where diverse employees can take on challenges and grow regardless of age or gender ■ Overview of personnel system revisions (effective Apr
Slide 34: Development of Professional Human Resources
Basic Strategy 03: Human Development of Professional Human Resources Resource Strategy Aim to strengthen consulting capabilities and earning power on a sustainable basis through the development of professionals ■ Process for developing professionals ■ Mid-career hiring efforts Develop professionals
Slide 35: DX Promotion (Across the Bank and the Group)
DX Promotion (Across the Bank and the Group) Basic Strategy 04: Digital Transformation Advance operational transformation through the utilization of generative AI First among financial ■ Enhancement of credit assessment and risk institutions in ■ Planning to introduce generative AI into housing loan
Slide 36: DX Promotion (Regional DX)
DX Promotion (Regional DX) Basic Strategy 04: Digital Transformation Begin corporate banking app development, aiming to expand the reach of non-face-to-face transactions ■ Began corporate banking app development jointly with BIPROGY Reflect the needs of Leverage expertise gained Aim to sell the app
Slide 37: Smartphone Banking
Smartphone Banking Basic Strategy 04: Digital Transformation Sales of the Hyakugo Smartphone Banking App to financial institutions outside Mie Prefecture Asahikawa Shinkin Bank Launched in June 2026 In collaboration with BIPROGY, which supported app development, provide the platform of the Bank’s ba
Slide 38: Top Risk Management
Basic Strategy 05: Strengthening Top Risk Management of Strategic Foundation Identify key risks that could have a significant impact on the management of the Group ■ Purpose of top risk management Establish a shared understanding of risks Discuss the likelihood, impact, and Allocate management resou
Slide 39: Initiatives to Improve P/B Ratio
Initiatives to Improve P/B Ratio Aim to enhance corporate value through the implementation of various initiatives set in the Medium-term Management Plan “Taking on Challenges for the Future” Logic Tree for P/B ratio Improvement PBR and ROE: As of March 31, 2026 Number of IR/SR sessions held: FY2025
Slide 40: 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 <Maintaining an appropriate equity ratio> Net Shareholder income returns Risk assets R
Slide 41: Cross-Shareholdings
Cross-Shareholdings ■Trend in the balance (market value) of cross-shareholdings Concept of reducing cross-shareholdings Balance after deducting the agreed sale amount • If banking transactions or other relationships with the counterparty continue (100 million yen) even after a sale has been agreed,
Slide 42: Cross-Shareholdings
Cross-Shareholdings ■ Strategic investments financed by proceeds from sales Status of cross-shareholdings reduction ■ Trend in amount of cross-shareholdings sold since FY 3/2023 Plan for Medium-term Previous Medium-term Current Medium-term Results in FY2025 Management Plan Management Plan Management
Slide 43: 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% ■ Trends in total dividends and dividends per share Medium-term Management Plan period Total amount of dividends (million yen)
Slide 44: Appendix
Appendix 44
Slide 45: Strengths of Our Sales Foundation
Strengths of Our Sales Foundation ■ Key sales foundation data National National Survey year Mie Prefecture Aichi Prefecture ranking ranking Strengths of Mie Prefecture Total population 2024 1,711 thousand people 22nd 7,460 thousand people 4th Concentration of specialized technologies: Automotive par
Slide 46: Group Companies
Group Companies Hyakugo Card Company Limited Credit card and credit guarantee services Hyakugo Leasing Company Limited Lease services Hyakugo Research Institute Company Limited Regional industrial research and consulting services Planning, development and operation of systems, Hyakugo Digital Soluti
Slide 47: Impact of Rising Yen Interest Rates
Impact of Rising Yen Interest Rates Yen Balance Sheet (bank’s non-consolidated Impact of a 0.25% increase in yen interest rates on basis) interest income * Policy rate assumption in the Medium-term ■ Impact simulation Management Plan: 0.75% unchanged ■Summary of yenbalance sheet June 2026 December 2
Slide 48: Corporate Governance Reinforcement
Corporate Governance Reinforcement ■ Reinforcement of the PDCA cycle in corporate governance Matters to Be Addressed Descriptions and Responses Clarify the corporate governance departments (Corporate Planning Section and Secretariat) that were not Clarification of responsible departments previously
Slide 49: Equity Ratio (Consolidated)
Equity Ratio (Consolidated) (100 million yen) Equity capital, shareholders’ equity, and equity ratio (100 million yen) End of End of End of Equity capital Shareholders’ equity Equity ratio 3/24 3/25 3/26 12.55% 12.52% 12.33% 11.49% Equity capital (For equity ratio 2,807 2,878 3,000 calculation purpo
Slide 50: 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 286.6 billion yen and allocable capital of 183.2 billion yen, actual amount of risk is 89.7 billion yen (100 million ye
Slide 51: Outstanding Non-performing Loans by Disclosure Standard and Coverage
Outstanding Non-performing Loans by Disclosure Standard and Coverage Non-performing Loans under Internal Assessment Standard (target: total credit exposure) Loans disclosed under the Financial Reconstruction Act and risk-managed claims (target: total credit exposure) *Special attention loans, loans
Slide 52: 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