Chugin Financial Group,inc. · TSE:5832
Chugin Financial Group,inc — FY2024 Earnings Presentation
48 slides from Chugin Financial Group,inc's earnings presentation, Jun 2, 2025
Slide 1: FY2024 Earnings Results Briefing
FY2024 Earnings Results Briefing June 2, 2025 Our challenges build our future. Chugin Financial Group, Inc.
Slide 2: What we would like to tell you today
Our challenges build our future. What we would like to tell you today Chugin Financial Group, Inc. Five consecutive years of Profit 27.4 billion yen FY2024 attributable to profit increase owners of parent (+6.1 billion YoY) Medium-term Management Plan KPI* Profit FY2025 Achieving one year ahead of s
Slide 3: Table of Contents
Our challenges build our future. Table of Contents Chugin Financial Group, Inc. I. Earnings Results for FY2024 and Forecasts II. Toward Enhancement of Corporate Value for FY2025 • Earnings Results for FY2024 • Overview of the Medium-term 13 Summary 5 Management Plan and Progress Net Interest Income
Slide 4: Section I Earnings Results for FY2024 and Earnings Forecasts for FY2025
Section I Earnings Results for FY2024 and Earnings Forecasts for FY2025 4
Slide 5: Earnings Results for FY2024 —Summary—
Earnings Results for FY2024 —Summary— Our challenges build our future. Chugin Financial Group, Inc. Net sales expanded significantly, marking the fifth consecutive year of increased profit * Forecast published on Nov. 8, 2024 Factors behind change Consolidated for the Chugin (Profit attributable to
Slide 6: Earnings Results for FY2024 —Net interest income (Non-consolidated for the Bank)—
Earnings Results for FY2024 —Net interest income (Non-consolidated for the Bank)— Our challenges build our future. Chugin Financial Group, Inc. [Breakdown of net interest income (non-consolidated for the Bank)] FY2023 FY2024 (billion yen) Result Result YoY (1) Net interest income 62.2 76.3 14.1 Yen
Slide 7: Earnings Results for FY2024 —Fee business-related revenues (Group total)—
Earnings Results for FY2024 —Fee business-related revenues (Group total)— Our challenges build our future. Chugin Financial Group, Inc. [Breakdown of fee business-related revenues (Group total)] FY2023 FY2024 (billion yen) Result Result YoY Fee business-related revenues 27.1 30.4 3.3 The Chugoku Ban
Slide 8: Earnings Results for FY2024 —Expenses and credit cost (Non-consolidated for the Bank)—
Earnings Results for FY2024 —Expenses and credit cost (Non-consolidated for the Bank)— Our challenges build our future. Chugin Financial Group, Inc. [Breakdown of expenses (non-consolidated for the Bank)] [Breakdown of credit cost (non-consolidated for the Bank)] FY2023 FY2024 FY2023 FY2024 (billion
Slide 9: Earnings Forecasts for FY2025
Our challenges build our future. Earnings Forecasts for FY2025 Chugin Financial Group, Inc. Consolidated for the Chugin Financial Group FY2023 FY2024 FY2025 Result Result Forecasts (billion yen) YoY Consolidated ordinary profit 31.1 38.3 47.6 9.3 Profit attributable to owners of parent 21.3 27.4 33.
Slide 10: Shareholder Returns
Our challenges build our future. Shareholder Returns Chugin Financial Group, Inc. [FY2025] ・ Aiming for a dividend payout ratio of around 40%, increase dividends through profit growth 74 yen ・ Flexibly carry out share buybacks through capital control 62 yen (Up 12 yen YoY) Share buybacks 47 yen cons
Slide 11: Cross-shareholdings
Our challenges build our future. Cross-shareholdings Chugin Financial Group, Inc. [Basic Policy] ・ We will limit cross-holdings to cases where it is determined necessary for the sustainable growth and enhancement of the corporate value of the Group and the issuers. ・ We will reduce cross-shareholdin
Slide 12: Section II Toward Enhancement of Corporate Value
Section II Toward Enhancement of Corporate Value 12
Slide 13: Medium-term Management Plan —Overview (Three growth strategies)—
Medium-term Management Plan —Overview (Three growth strategies)— Our challenges build our future. Chugin Financial Group, Inc. 1 “Deepening” of regional revitalization SDGs We will contribute to the “sustainable development of communities” by drawing out their appeal and potential. Medium-term Manag
Slide 14: Medium-term Management Plan —Progress (KPIs)—
Medium-term Management Plan —Progress (KPIs)— (On a consolidated bases for the FG, unless indicated otherwise) Our challenges build our future. Chugin Financial Group, Inc. ⚫ Financial KPIs Financial KPIs FY2026 target FY2024 result [Reference] FY2023 results Upward 40.0 billion yen or more ➢ Profit
Slide 15: Initiatives in the Long-term Management Plan
Our challenges build our future. Initiatives in the Long-term Management Plan Chugin Financial Group, Inc. Toward further Profit attributable to owners of parent (billion yen) 40.0 or more profit growth Five consecutive years of profit increase 33.0 Interest rate assumptions 27.4 [Japan] ・ Policy in
Slide 16: Capital Allocation
Our challenges build our future. Capital Allocation Chugin Financial Group, Inc. Ratio of common equity Tier 1 (Consolidated for the FG, excluding the valuation difference on available-for-sale securities, etc.) +0.7pt from −0.27 pt Dividends Share from −0.55 pt 12.0% buybacks Profit Profit accumula
Slide 17: (Reference) Capital Management Approach
Our challenges build our future. (Reference) Capital Management Approach Chugin Financial Group, Inc. Tier2 Maintain high total capital Of which, valuation adequacy ratio by utilizing difference on Tier 2 capital available-for-sale securities, etc. • Strengthening growth investment • Additional shar
Slide 18: Future Initiatives
Our challenges build our future. Future Initiatives Chugin Financial Group, Inc. Boosting net sales 1. ✓ Accelerate strategies and measures by leveraging the unit system Acquiring deposits, allocation and strategic redeployment of personnel 2. ✓ Obtain low-liquid deposits, which are important for as
Slide 19: Establishment of a Unit System
Boosting Deposits/ Sustainable Establishment of a Unit System net sales Personnel growth Our challenges build our future. Chugin Financial Group, Inc. Business planning, business management, HR strategy ✓ Clarification of roles FG Functions ✓ Rapid decision making Business Strategy unit Investment s
Slide 20: Business Strategy Unit —Asset business—
Business Strategy Unit —Asset business— Boosting net sales Deposits/ Personnel Sustainable growth Our challenges build our future. Chugin Financial Group, Inc. Local development Average balance (billion yen) Regional Needs and Approx. characteristics issues Approx. 2,700.0 2,451.7 2,550.0 Manufactur
Slide 21: Business Strategy Unit —Fee business—
Boosting Deposits/ Sustainable Business Strategy Unit —Fee business— net sales Personnel growth Our challenges build our future. Chugin Financial Group, Inc. A wide range of solutions The Bank and Group companies collaborations Further People Chugin Human Innovations Approx. 120% strengthening (From
Slide 22: Investment Strategy Unit —Structured finance—
Investment Strategy Unit —Structured finance— Boosting Deposits/ Sustainable Our challenges build our future. net sales Personnel growth Chugin Financial Group, Inc. Initiatives for structured finance (loans from the headquarters) Average balance (billion yen) Local development Urban development ROR
Slide 23: Investment Strategy Unit —Securities management—
Investment Strategy Unit —Securities management— Boosting net sales Deposits/ Personnel Sustainable growth Our challenges build our future. Chugin Financial Group, Inc. Initiatives for securities management Investment partnerships 27.5 Foreign currency bonds Unrealized Equity 97.6 gains/losses Conti
Slide 24: (Reference) Impact of Rising Domestic Interest Rates
Boosting Deposits/ Sustainable (Reference) Impact of Rising Domestic Interest Rates net sales Personnel growth Our challenges build our future. Chugin Financial Group, Inc. Yen Balance Sheet Yen net interest income forecast (FY2024 average balance: non-consolidated for the Bank) * Planned increase i
Slide 25: Deposit Acquisition
Boosting Deposits/ Sustainable Our challenges build our future. Deposit Acquisition net sales Personnel growth Chugin Financial Group, Inc. Current situation ✓ Solid share in the local area ✓ Low-liquid, stable deposits Other Hiroshima Public funds, etc. 5% 3% 6% Okayama Kagawa 14% Corporate 26% Pre
Slide 26: Allocation and Strategic Redeployment of Personnel
Boosting Deposits/ Sustainable Our challenges build our future. Allocation and Strategic Redeployment of Personnel net sales Personnel growth Chugin Financial Group, Inc. Operational process reforms ✓ Review on an across-the-Group basis Policy and ✓ Setting projects for each operation features ✓ In-
Slide 27: Initiatives that Capture the Community from a Wide Perspective
Initiatives that Capture the Community from a Wide Perspective Boosting Deposits/ Sustainable Our challenges build our future. (Collaboration with municipal governments) net sales Personnel growth Chugin Financial Group, Inc. Character- Co-creation istics and DX・SX of appealing issues of the communi
Slide 28: Regional Sustainability
Boosting Deposits/ Sustainable Our challenges build our future. Regional Sustainability net sales Personnel growth Chugin Financial Group, Inc. Startup support Startups and secondary startups Cumulative total Startup ecosystem from 2017 to Mar. 2025 Talent discovery and development programs Business
Slide 29: Alliances and Partnerships
Boosting Deposits/ Sustainable Our challenges build our future. Alliances and Partnerships net sales Personnel growth Chugin Financial Group, Inc. <Major initiatives> Wide-area collaboration Syndicated loans ⚫ TSUBASA Alliance Boosting net sales Inheritance-related business Core system integration C
Slide 30: Alliances and Partnerships — Cross-industry collaboration
Boosting Deposits/ Sustainable Our challenges build our future. Alliances and Partnerships net sales Personnel growth Chugin Financial Group, Inc. Cross-industry collaboration ✓ Mutual use of Co-creation of a Direction to be pursued resources prosperous future with our through ✓ Horizontal deploymen
Slide 31: Human Capital Investments and Diversity
Boosting Deposits/ Sustainable Our challenges build our future. Human Capital Investments and Diversity net sales Personnel growth Chugin Financial Group, Inc. Increasing investment amount Improvement Adding Indirect Improving working environment in job targets investment and welfare benefits, etc.
Slide 32: Conclusion
Our challenges build our future. Conclusion Chugin Financial Group, Inc. FY2024 FY2025 FY2026 Result Plan New KPIs Toward Enhancement Net income 27.4 billion 33.0 billion 40.0 billion of Corporate Value yen yen yen or more ROE improvement Sustainable through achieving growth for the ROE Approx. 4.8%
Slide 33: (Reference) Trends in ROE/PBR
Our challenges build our future. (Reference) Trends in ROE/PBR Chugin Financial Group, Inc. Cost of capital - our understanding - ROE (%) PBR (times) Calculated value based on the Around 9% * ROE (based on the TSE) PBR/ROE results Including valuation difference on available-for-sale securities Estim
Slide 34: Section III Appendix (Major Numerical Figures)
Section III Appendix (Major Numerical Figures) 34
Slide 35: Earnings Results —Summary (Consolidated for the FG)—
Earnings Results —Summary (Consolidated for the FG)— Our challenges build our future. Chugin Financial Group, Inc. Net sales expanded significantly, mainly in net interest income and net fee income. * Forecast published on Nov. 8, 2024 Consolidated for the Chugin Financial Group FY2022 FY2023 FY2024
Slide 36: Summary —Status of the Group Companies (Non-consolidated for the Bank)—
Summary －Status of the Group Companies (Non-consolidated for the Bank)－ Our challenges build our future. Chugin Financial Group, Inc. Net interest income increased significantly mainly due to strategic asset expansion and rising domestic interest rates. * Forecast published on Nov. 8, 2024 Non-conso
Slide 37: Summary —Status of the Group Companies (Excluding the Bank)—
Summary －Status of the Group Companies (Excluding the Bank)－ Our challenges build our future. Chugin Financial Group, Inc. Profits of Group companies remain strong thanks to diverse solutions provided Ordinary Group companies (billion yen) profit YoY Net income YoY The Chugin Lease 0.68 −0.13 0.45 −
Slide 38: Net Interest Income –Non-consolidated for the Bank–
Net Interest Income –Non-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Factors behind change in net interest income] [Loan yield] (％) ■ Yen-based: ¥65.2 billion ■ Foreign currency-based: ¥11.1 billion Loan yield Loan yield (yen) (+¥10.8 billion YoY) (+¥3.3
Slide 39: Net Fee Income –Non-consolidated for the Bank–
Net Fee Income –Non-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Net fee income] (billion yen) ＋1.5 21.6 22.0 * Assets in custody: (investment trusts, insurance, municipal bonds, and financial instrument brokerage) + inheritance-related business 20.1 20.0
Slide 40: Corporate Solution-related Revenues –Consolidated for the FG–
Corporate Solution-related Revenues –Consolidated for the FG– Our challenges build our future. Chugin Financial Group, Inc. [Corporate solutions-related revenues] Breakdown of Group companies (million yen) *1: A total of gross margin for Lease, and operating revenues from Card, Human Innovations, an
Slide 41: Revenues Related to Assets in Custody –Consolidated for the FG–
Revenues Related to Assets in Custody –Consolidated for the FG– Our challenges build our future. Chugin Financial Group, Inc. [Revenues related to assets in custody] +1,022 Breakdown of Group companies (million yen) *1: Total of operating revenues for Securities and Asset (+814) Management (after de
Slide 42: Expenses –Non-consolidated for the Bank–
Expenses –Non-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Expenses] (billion yen) 62.7% 59.1% 55.3% OHR 60.0 ＋2.4 55.2 52.8 51.3 3.5 Taxes 3.3 50.0 3.1 2.4 Business management fee* 0.8 1.7 Impact of 12.4 the transformation to Other property expenses 11.6
Slide 43: Credit Costs and Non-performing Loans –Non-consolidated for the Bank–
Credit Costs and Non-performing Loans –on-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Non-performing loans (NPL) (Loans disclosed under [Credit costs] (billion yen) the Financial Revitalization Act)] (billion yen) Other credit costs* * The Chugoku Bank d
Slide 44: Deposits & Assets in Custody –Non-consolidated for the Bank–
Deposits & Assets in Custody –Non-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Average balance of deposits and assets in custody] (billion yen) ＋2.3％ 9,440.4 9,224.9 (8,288.3) Total assets in custody 9,074.2 (8,171.9) (Deposits + NCD) (8,067.0) 201.9 187.
Slide 45: Loans –Non-consolidated for the Bank–
Loans –Non-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Average loan balance] ＋10.9% 6,381.2 (billion yen) 5,753.6 81.8 6,000.0 5,400.9 47.1 1,303.5 Overseas branches 30.7 ＋40.1% 930.3 5,000.0 Loans to the 776.9 headquarters*3 400.7 415.7 429.0 Local gove
Slide 46: Securities –Non-consolidated for the Bank–
Securities –Non-consolidated for the Bank– Our challenges build our future. Chugin Financial Group, Inc. [Average balance of securities] [Unrealized gains/losses] (billion yen) 2,635.4 Mar. 31, 2024 Mar. 31, 2025 +296.9 (billion yen) Term-end comparison Total 84.8 12.5 -72.3 27.5 Securities 74.5 -18
Slide 47: Status of Capital Adequacy –Consolidated for the FG–
Status of Capital Adequacy －Consolidated for the FG－ Our challenges build our future. Chugin Financial Group, Inc. [Capital adequacy ratio (consolidated for the FG)] [Status of capital adequacy (consolidated for the FG)] (％) FY ended Mar. 2024 FY ended Mar. 2025 (billion yen) Change Total capital ad
Slide 48: Chugin Financial Group, Inc.
Our challenges build our future. Chugin Financial Group, Inc. This material contains forward-looking statements. These statements do not guarantee our future business performance and include risks and uncertainties. It should be noted that future performance may differ from the targets mentioned her
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