Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2021 Earnings Presentation
45 slides from Bank Of The Ryukyus,limited's earnings presentation, May 2022
Slide 1: Financial Results for FY 2021
Financial Results for FY 2021 Received the grand prize in the 30th (Fiscal 2021) Bingata Design Contest “The Cradle of Life” by Ai Yoshihama
Slide 2: Contents
Contents 1 3 About Bank of the Ryukyus Financial Results for the Fiscal Year Ended Expenses .... 32 Bank of the Ryukyus Overview .... 4 March 31, 2022 Forward-looking Mechanization .... 33 Financial Summary (Consolidated) (1/2) .... 12 Investment Plan Bank of the Ryukyus History .... 5
Slide 3: About Bank of the Ryukyus
1 About Bank of the Ryukyus Received the grand prize in the 30th (Fiscal 2021) Bingata Design Contest “The Cradle of Life” by Ai Yoshihama
Slide 4: Bank of the Ryukyus Overview
Bank of the Ryukyus Overview Company Profile Affiliated Companies Establishment May 1, 1948 Address 1-7-1 Kumoji, Naha, Okinawa Prefecture May 10, 1972 Establishment 346 million yen (100% stock ownership by Bank of the Ryukyus) Capital Leasing and installment-selling of information-related devices/e
Slide 5: Bank of the Ryukyus History
Bank of the Ryukyus History Bank of the Ryukyus was originally established on May 1, 1948 as a special May 1948 Precursor organization established via Military Government Ordinance No. 1 banking organization via the Military Government Ordinance, and the US The Bank changed from special public corpo
Slide 6: Okinawa's Economy Amid the COVID-19 Crisis
2 Okinawa’s Economy Amid the COVID-19 Crisis Received the grand prize in the 30th (Fiscal 2021) Bingata Design Contest “The Cradle of Life” by Ai Yoshihama
Slide 7: Tankan Survey
Tankan Survey Tourism, which is a key industry in Okinawa Prefecture, declined relative to nationwide levels. Business Sentiment DI (Good/Bad) Economic Overview of Okinawa Prefecture Nationwide Okinawa 40 The Tankan (Short-Term Economic Survey of Prospects 32 Enterprises in Japan) showed business
Slide 8: Tourism
Tourism Priority measures to prevent COVID-19 spread, state-of-emergency declarations, and similar measures implemented for more than half of FY 2021 resulted in restrictions on inter-prefecture movement, prolonging difficult conditions in the tourism industry. (No. of Persons) Numbers of Tourists (
Slide 9: Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies
Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies Continually declining demand in tourism, a key Okinawa Prefecture industry, and other such negative developments have led to increased unemployment rates and decreased job-openings-to-applicants ratios. However, corpor
Slide 10: Public Construction Contract Amounts and Numbers of New Housing Construction Projects Started
Public Construction Contract Amounts and Numbers of New Housing Construction Projects Started New public construction contract amounts remained strong despite the spread of COVID-19. Numbers of new housing construction projects were weak overall, primarily due to a decline in new rental housing cons
Slide 11: Financial Results for the Fiscal Year Ended March 31, 2022
3 Financial Results for the Fiscal Year Ended March 31, 2022 Received the grand prize in the 30th (Fiscal 2021) Bingata Design Contest “The Cradle of Life” by Ai Yoshihama
Slide 12: Financial Summary (Consolidated) (1/2)
Financial Summary (Consolidated) (1/2) Revenue decreased and profit increased. Improvements in non-consolidated expenses and credit costs led to higher consolidated net income. (100 million yen) FY 2021 (Ending Mar. 2022) FY 2020 (Ending Mar. 2021) Year-on-year change Ordinary revenue 570 –2 572 Ord
Slide 13: Financial Summary (Consolidated) (2/2)
Financial Summary (Consolidated) (2/2) Positive profit for the period was achieved for Bank of the Ryukyus Group companies. (100 million yen) Bank of the Ryukyu Okinawa Credit Ryugin Ryugin DC Service Others Ryukyus Leasing Hosho Ordinary revenue 386 160 17 19 9 –24 Ordinary profit 69 5 4 2 7 –10 Ne
Slide 14: Financial Summary (Non-Consolidated)
Financial Summary (Non-Consolidated) Revenue and profit increased. The introduction of forward-looking provisioning in FY 2020 caused a downward credit-cost rebound. (100 million yen) FY 2021 (Ending Mar. 2022) FY 2020 Year-on-year change (Ending Mar. 2021) Ordinary revenue 386 13 373 Business gross
Slide 15: Summary of Profit/Loss Trends
Summary of Profit/Loss Trends (Non-Consolidated: March 2018 to March 2022) (Million yen) Mar. 2018 Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Year on Year Profit from customer services *1 3,395 3,472 3,619 3,835 5,097 +1,262 Deposit and loan balance*2 21,890 22,278 22,837 23,249 23,433 +184 Profit from
Slide 16: Profit/Loss During the Fiscal Year Ended March 31, 2022
Profit/Loss During the Fiscal Year Ended March 31, 2022 Major profit increases were seen over the previous fiscal year due to decreased credit costs and increased profit from customer services. (100 million yen) Net income (Million yen) Factors Behind Year-on-year Increases 80 7,000 and Decreases 56
Slide 17: Profit from Customer Services
Profit from Customer Services Service charge profit increases and expense reductions led to growing profits from customer services. Profits from service charges for mortgage loans, assets in custody and card business services helped bring service charge profit up overall. Profit from Customer Servic
Slide 18: Loans (1/2)
Loans (1/2) Slowed loan-balance growth rates and loan interest rate declines resulted in flattening out of loan interest changes. Loan Interest Rate Loan Balance Loan Interest Rate Total loan amt. Syndicated loans (%) Loan interest rate (regional banks nationwide) (100 million yen) Local gov'ts, oth
Slide 19: Loans (2/2)
Loans (2/2) Personal loans, mortgage loans and similar showed steady increases, but decreasing funding demand by businesses and other issues resulted in a lower business-loan balance. (100 million yen) Syndicated Loans (%) (100 million yen) Rental and Real Estate Loans (%) Breakdown of Loan Balances
Slide 20: COVID-19 Crisis Financial Support
COVID-19 Crisis Financial Support Amounts for credit condition changes and new loans in response to the COVID-19 crisis leveled out due to easing of economic-activity restrictions and similar changes. Amounts for Credit Condition Changes in Amounts from Loans Made for (100 million yen) (100 million
Slide 21: Deposits
Deposits The balance of deposits exhibited a rising trend thanks primarily to yields from COVID-19 subsidies, financing support and other such measures. Balance of Deposits Annual Percentage Yields Individual (100 million yen) (%) (100 million yen) Commercial Public funds, etc. Interest on deposits
Slide 22: Profit from Service Charges
Profit from Service Charges Service charges for assets in custody, mortgage loans, card business services and similar drove increased service charge profit. Trends in Profit from Service Charges Factors Behind Year-on-year Increases (Excluding Group Credit Life Insurance Premiums and Loan Guarantee
Slide 23: Assets in Custody
Assets in Custody Sales strengthening measures for assets in custody led to increased sales for investment trusts, single- premium life insurance and commercial insurance. Assets on Custody Sales Revenues Assets in Custody Balance (100 million yen) Single-premium life insurance Investment trusts Gov
Slide 24: Retail Customer Services
Retail Customer Services We have pursued retail-customer asset inheritance support services since FY 2017, and by further disseminating and raising awareness of endeavors to solve inheritance-related problems and issues we have boosted revenues from services fees for retail customers. Service Fees f
Slide 25: Corporate Customer Services
Corporate Customer Services Revenue from service charges remained relatively unchanged. There was a trend toward increased M&A consultations due to the COVID-19 pandemic. We provided support for businesses who wished to rebuild and thus applied for business rebuilding subsidies. (Million yen) Revenu
Slide 26: Card-related Business (1/2)
Card-related Business (1/2) Numbers of Visa debit card issuances and card affiliates both grew steadily, and service charge profits from card usages and affiliates increased despite the COVID-19 pandemic. Numbers of Visa Debit Cards Issued Numbers of Card Affiliates and Service Charge Profits and Se
Slide 27: Card-related Business (2/2)
Card-related Business (2/2) Numbers of new members grew for Visa debit cards with contactless payment functionality. Payment terminal functions are becoming increasingly sophisticated at card-affiliate locations as we accelerate efforts to sign up new affiliates. Ryugin Visa Debit Card Main Efforts
Slide 28: Securities
Securities As interest rates rose both domestically and internationally, we determined loss amounts while conducting bond swap sales in order to bolster yields. We expect these efforts to contribute toward improved interest revenues from FY 2022 onward. Profit/loss in Trading Division Securities Bal
Slide 29: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt We introduced forward-looking provisioning in FY 2020. A reversal in credit cost trends was seen due to restarting of capital repayments by some businesses, improvements in economic indicators and other factors. Net Credit Costs Disclosed Bad Debt (100 million
Slide 30: Overview of Forward-looking Provisioning (1/2)
Overview of Forward-looking Provisioning (1/2) By switching to a more rational estimation method for future risk calculation that takes consideration of macroeconomic indicators, probabilities of economic-cycle-related scenarios based on current and future information, and assessment methods that fa
Slide 31: Overview of Forward-looking Provisioning (2/2)
Overview of Forward-looking Provisioning (2/2) Repayments by some businesses (primarily in real estate) were restarted. Provision amount decreased due to credit rating rank increases. Overall Real Estate Industry (100 million yen) (100 million yen) (100 million yen) (100 million yen) Claim amount (l
Slide 32: Expenses
Expenses Despite increased non-personnel expenses including new-headquarters construction outlays and other future-oriented investments, we achieved reduced system-related expenses overall compared with the previous fiscal year. Non-personnel expenses (1) Shop-related (2) System-related (100 million
Slide 33: Forward-looking Mechanization Investment Plan
Forward-looking Mechanization Investment Plan In our FY 2022 mechanization investment plan, investment toward mechanization aimed at customer service improvements, increased profits and other such improvements accounted for more than 26 percent of the total. Furthermore, we continued with strategic
Slide 34: Workforce Planning
Workforce Planning We reduced workforce size as well as individual workloads to simultaneously bring down labor costs and strengthen customer communication. Main Measures to Reduce Labor Demand at Bank Locations Changes in Workforce Size Introduction of Barcode and QR Code Reader Functionality (Feb.
Slide 35: Capital Adequacy Ratio
Capital Adequacy Ratio We bolstered financial support measures prepared in response to the COVID-19 crisis, and our capital adequacy ratio increased steadily. (100 million yen) Non-consolidated Regulatory Capital (100 million yen) Consolidated Regulatory Capital and Capital and Capital Adequacy Rati
Slide 36: Outside Credit Ratings
Outside Credit Ratings The credit score assigned to our bank by the Japan Credit Rating Agency (JCR) for FY was upgraded from A to A+. As a result, Bank of the Ryukyus now has an A+ credit score, which is the fifth highest possible score, from both Rating and Investment Information (R&I) and JCR. Ra
Slide 37: Forecast for FY 2022 (Ending March 31, 2023)
Forecast for FY 2022 (Ending March 31, 2023) We expect to achieve zero credit costs in FY 2022, and thanks to the rebound this year gains of approximately 700 million yen are forecasted. Profit decline is expected for both non-consolidated and consolidated financial results. Non-Consolidated (100 mi
Slide 38: Dividends
Dividends Dividends for the coming fiscal year will be on par with those paid this fiscal year based on the basic dividend policy. (Yen) Annual Dividends Per Share (%) Consolidated Dividend Payout Ratios 50 50.0 Overall Returns Trend 41.6 (Own-stock Acquisition: 500 Million Yen) 40.0 35.5 32.4 34.0
Slide 39: Distinctive Measures
4 Distinctive Measures Information Disclosure Based on the Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations Responses to Climate Change Issues Measures Through Our Alliances COVID-19 Crisis Responses and Okinawa’s Economic Outlook Digital Tr
Slide 40: Information Disclosure Based on TCFD Recommendations
Information Disclosure Based on the Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations Governance Indicators and Targets Sustainability Committee Scope 1 and 2 Greenhouse Gas Emissions With the president as Sustainability Committee chairperson, the bo
Slide 41: Response Measures to Climate Change Issues
Response Measures to Climate Change Issues Future Measures Related to TCFD and Scope 3 Emissions New Loan Products in Response to Environmental Issues Reducing Scope 3 Greenhouse Gas Emissions Addition of ZEHs*1 and BELS*2 Certified Buildings/Homes as Mortgage Through financing promotion measures
Slide 42: Measures Through Our Alliances
Measures Through Our Alliances While calling upon the knowledge and experience of multiple alliances and their member organizations, we strive to achieve mo re sophisticated financial services. TSUBASA Alliance Okinawa Economic Revitalization Partnership Establishment of the Business Strategy Depart
Slide 43: COVID-19 Crisis Responses and Okinawa's Economic Outlook
COVID-19 Crisis Responses and Okinawa’s Economic Outlook Bank of the Ryukyus utilizes forward-looking provisioning to achieve a framework that supports customers without fear of additional credit costs. This approach is an example of “moves toward recovery” as described Regional Economic Trends, a g
Slide 44: Digital Transformation (DX) Measures
Digital Transformation (DX) Measures Through the use of digital technologies, we are striving to bolster our productivity, earning capacity and corporate value while contributing to the local region. Working-style Revolutions Six Key Performance Indicators (KPIs) for Achieving DX Switch to Microsoft
Slide 45: 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