Nishi-nippon Financial Holdings, Inc. · TSE:7189
Nishi-nippon Financial — FY2024 Earnings Presentation
49 slides from Nishi-nippon Financial's earnings presentation, May 30, 2025
Slide 1: Financial Results for the Fiscal Year Ended March 31, 2025
Financial Results for the Fiscal Year Ended March 31, 2025 May 30, 2025 Nishi-Nippon Financial Holdings, Inc.
Slide 2: Today's Agenda / Reference Materials
Today’s Agenda Reference Materials Page Page I. Financial Results 2 Supplementary Materials on Performance 38 1. Overview of Financial Results 3 1. Statement of Income 39–41 2. Net Interest Income 4 2. Balance Sheet 42–43 (Appendix) Impact of Rising Interest Rates on Earnings (Estimate) 5 3. Average
Slide 3: I. Financial Results
I. Financial Results I. Financial Results Financial Results for the Fiscal Year Ended March 31, 2025 P.2
Slide 4: 1. Overview of Financial Results
1. Overview of Financial Results Profit attributable to owners of parent for the fiscal year ended March 31st, 2025 increased by 7.4 billion yen year- on-year (YoY) to 31.0 billion yen, mainly due to an increase in net interest income. FYE Mar.31 ■Profit and Loss (Consolidated) FYE Mar.31 2025 202
Slide 5: 2. Net Interest Income
2. Net Interest Income Net interest income for the fiscal year ended March 31st, 2025 increased by 11.8 billion yen YoY to 102.8 billion yen, mainly due to an increase in the balance of net interest, as well as an increase in interest on deposits with banks and a decrease in interest on foreign cu
Slide 6: Impact of Rising Interest Rates on Earnings (Estimate)
<Appendix> Impact of Rising Interest Rates on Earnings (Estimate) The rise in market interest rates is expected to have a positive impact on our performance, mainly through the expansion of the loan-to-deposit spread. ■ The Nishi-Nippon City Bank’s balance sheet structure ■ Impact on earnings (net
Slide 7: 2. Net Interest Income (1) Interest on Loans and Discounts (NCB)
2. Net Interest Income (1) Interest on Loans and Discounts (NCB) Interest on loans and discounts for the fiscal year ended March 31st, 2025 increased by 9.8 billion yen YoY to 89.7 billion yen on the back of the rise in yield and solid growth of business loans and personal loans. Interest on loa
Slide 8: 2. Net Interest Income (2) Interest on Deposits and Negotiable Certificates of Deposit (NCB)
2. Net Interest Income (2) Interest on Deposits and Negotiable Certificates of Deposit (NCB) Interest on deposits and negotiable certificates of deposit for the fiscal year ended March 31st, 2025 increased by 6.7 billion yen YoY to 7.2 billion yen, chiefly driven by a rise in yield due to increasi
Slide 9: 2. Net Interest Income (3) Interest and Dividends on Securities (NCB)
2. Net Interest Income (3) Interest and Dividends on Securities (NCB) Interest and dividends on securities for the fiscal year ended March 31st, 2025 increased by 1.3 billion yen YoY to 29.3 billion yen, mainly due to an increase in gains on investment trust cancellations. Interest and dividends
Slide 10: 3. Fees and Commissions
3. Fees and Commissions Fees and commissions for the fiscal ended March 31st, 2025 decreased by 0.6 billion yen YoY to 23.4 billion yen, mainly due to a decline in corporate customer-related fee income* while client assets-related fee income grew steadily. (* mainly due to the absence of fee incom
Slide 11: 4. Expenses
4. Expenses Expenses for the fiscal year ended March 31st, 2025 increased by 2.7 billion yen YoY to 82.9 billion yen, primarily due to pay raises and higher non-personnel costs, including those related to the new branch system. Expenses for the fiscal year ending March 31, 2026 are expected to i
Slide 12: 5. Credit Cost
5. Credit Cost Credit cost for the fiscal year ended March 31st, 2025 decreased by 0.8 billion yen YoY to 5.8 billion yen. While outstanding loans and discounts grew, the ratio of credit cost and the ratio of non-performing loans remained at low levels. Given the uncertain outlook, etc., credit
Slide 13: 6. Financial Results Forecast
6. Financial Results Forecast Profit attributable to owners of parent for the fiscal year ending March 31, 2026 is expected to grow 6.0 billion yen YoY to 37.0 billion yen, primarily driven by higher net interest income resulting from an increase in the balance of net interest. ■ Profit and Loss (
Slide 14: 7. Shareholder Returns (Dividend Forecast)
7. Shareholder Returns (Dividend Forecast) Shareholder returns for the fiscal year ended March 31st, 2025 totaled 12.5 billion yen, an increase of 2.7 billion yen YoY, with a total return ratio of 40.3%. Plan to increase annual dividends per share from 75 yen to 90 yen (for five consecutive peri
Slide 15: II. Management Strategies - Initiatives to Enhance Corporate Value -
II. Management Strategies - Initiatives to Enhance Corporate Value - II. Management Strategies Financial Results for the Fiscal Year Ended March 31, 2025 P.14
Slide 16: 1. Local Market Environment in Kyushu/Fukuoka
1. Local Market Environment in Kyushu/Fukuoka The Kyushu Region is seeing strong capital investment, led by the semiconductor industry and a series of large- scale urban redevelopment projects. Fukuoka City, home to our Head Office, is experiencing population growth, creating numerous business opp
Slide 17: (1) Economic Outlook in the Kyushu Region
1. Local Market Environment in Kyushu/Fukuoka (1)Economic Outlook in the Kyushu Region Kyushu’s GDP is expected to grow at a rate exceeding the national average for five consecutive years, supported by a recovery in capital investment and sustained high investment levels. ■ Kyushu’s economic outlo
Slide 18: Impact of the U.S. Tariff Policy on Kyushu Economy (Estimate)
<Appendix> Impact of the U.S. Tariff Policy on Kyushu Economy (Estimate) The impact of the U.S. tariff policy on the Kyushu economy is expected to be broadly in line with its impact on the national economy. ■ Industry and export composition in the Kyushu Region (compared to the national average) -
Slide 19: (2) Potentials of Fukuoka Prefecture/Fukuoka City
1. Local Market Environment in Kyushu/Fukuoka (2)Potentials of Fukuoka Prefecture/Fukuoka City Population decline in Fukuoka Prefecture, where our Head Office is located, is moderate compared to the national average. In addition, Fukuoka City is forecasted to have a population growth and highly ra
Slide 20: (3) Development Trend in Fukuoka City and its Vicinity
1. Local Market Environment in Kyushu/Fukuoka (3)Development Trend in Fukuoka City and its Vicinity In addition to large-scale redevelopment projects in the central part of Fukuoka City, development projects for housing and logistics facilities are progressing in the vicinity of Fukuoka City on th
Slide 21: (4) Update on Semiconductor-related Investments
1. Local Market Environment in Kyushu/Fukuoka (4)Update on Semiconductor-related Investments Companies around the world are proactively making capital investments for semiconductor-related facilities in many prefectures in the Kyushu Region, most notably Taiwan Semiconductor Manufacturing Company
Slide 22: 2. Initiatives to Enhance Corporate Value
2. Initiatives to Enhance Corporate Value Key measures under the Medium-Term Business Plan (MTBP) are progressing steadily, and target management indices (MTBP KPIs) appear to be on track for achievement. Medium-Term Business Plan Leaping Forward 2026 Mar. 2023 Mar. 2025 Mar. 2026 Mar. 2026 Connec
Slide 23: PBR, ROE, and Stock Prices
<Appendix> PBR, ROE, and Stock Prices ■ PBR ■ Consolidated ROE After remaining very muted, PBR began 12.0% Shareholders’ equity basis Aiming at a level above capital cost over rising but is yet to reach the level of 1.0 Net asset basis the medium- to long-term 0.60 10.0% 0.52 0.49 0.50 8.0% We recog
Slide 24: 3. One-to-One Solutions (1) Corporate Customers
3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers Provide financial and non-financial solutions tailored to each corporate customer’s needs, which are becoming increasingly diverse and sophisticated. Increasingly diverse and sophisticated issues and needs of corporate c
Slide 25: 3. One-to-One Solutions (1) Corporate Customers: Fundraising Methods
3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers Provide diverse fundraising methods that meet customers’ individual needs using structured finance, funds, and other instruments. Initiatives for structured finance Utilization of funds Focusing on a diverse range of s
Slide 26: 3. One-to-One Solutions (1) Corporate Customers: DX and HR Support
3. Providing Customer-Oriented “One to One Solutions” (1) Corporate Customers Provide a diverse range of solutions that address immediate managerial issues of many corporate customers, including “digitalization/DX” and “recruitment”. Support for digitalization/DX Human resource-related support N
Slide 27: 3. One-to-One Solutions (2) Retail Customers
3. Providing Customer-Oriented “One to One Solutions” (2) Retail Customers Provide optimal solutions for each customer by practicing customer-oriented business operation and consulting on all assets and liabilities for a broad range of customers. Issues and needs of retail customers Consulting on
Slide 28: 3. One-to-One Solutions (2) Retail Customers: Asset Building
3. Providing Customer-Oriented “One to One Solutions” (2) Retail Customers Provide optimal solutions for every stage of customers’ lives by proposing asset-building options, starting with NISA, along with various loan products. Consulting on asset building Provision of solutions for wealthy indivi
Slide 29: 4. Sales Reform (1) Strengthening the Sales System
4. Sales Reform (1) Strengthening the Sales System With a strengthened HQ support system, information sharing among branch offices, HQ, and Group companies has improved significantly. Inter-Group collaboration has enabled the provision of diverse solutions, contributing to consolidated financial
Slide 30: 4. Sales Reform (2) Digital Strategy
4. Sales Reform (2) Digital Strategy Both the user count and the share of transactions via digital channels are steadily rising among corporate and retail users. These digital channels are becoming increasingly important as key customer contact points. The Nishi-Nippon City Bank App, a digital c
Slide 31: 4. Sales Reform (3) Work Reform
4. Sales Reform (3) Work Reform Operational efficiency and productivity are steadily increasing through streamlined and digitalized operations at HQ and branch offices. - By rolling out the branch system to all locations, we significantly reduce branch administration to transform branch offices in
Slide 32: 5. Human Resources Reform (1) Human Resources Development
5. Human Resources Reform (1) Human Resources Development Strongly support the growth of each employee by developing strategic human resources to lead the Group’s future in consulting, DX, planning, etc., and expanding job class / business operation-based training and re-skilling training. Develop
Slide 33: 5. Human Resources Reform (2) Greater Job Satisfaction
5. Human Resources Reform (2) Greater Job Satisfaction Build a corporate culture that promotes advancement of diverse human resources by establishing an environment that enhances job satisfaction through improved employee treatment, promotion of diversity & inclusion, two-way dialogue between the
Slide 34: Reconstruction of the Head Office Building
<Appendix> Reconstruction of the Head Office Building A complex building featuring office floors and commercial facilities, along with The Nishi-Nippon City Bank’s Head Office and HQ functions. Construction underway for the scheduled opening in the summer of 2026. Overview of the new Head Office
Slide 35: 6. Sustainability Initiatives
6. Sustainability Initiatives Contribute to the realization of a sustainable society by bolstering SDGs/ESG initiatives via means only available to a regional financial group. Supporting customers’ initiatives Our initiatives ■ Amount of sustainable finance executed (two banks combined) ■ CO₂ emis
Slide 36: 7. Capital Policy (1) Basic Approaches
7. Capital Policy (1) Basic Approaches Actively make forward-looking growth investments while securing sufficient levels of capital for sustainable growth and improvement of the corporate value of the NNFH Group; at the same time, increase returns of profits to shareholders and investors. Drive gr
Slide 37: 7. Capital Policy (2) Reduction of Strategic Shares
7. Capital Policy (2) Reduction of Strategic Shares The ratio of strategic shares to consolidated net assets lowered to 17.7% as of March 31, 2025. Continue reviewing whether it is appropriate to keep holding each issue and consider reduction. ■ Balance and number of pure ■ Balance of strategic
Slide 38: MEMO
MEMO 2025年3月期 Financial Results for the Fiscal Year 決算説明会 Ended March 31, 2025 P.37 P.37
Slide 39: Supplementary Materials on Performance
Supplementary Materials on Performance Ref. Supplementary Materials on Performance 2025年3月期 Financial Results for the Fiscal Year 決算説明会 Ended March 31, 2025 P.38 P.38
Slide 40: 1. Statement of Income (1) Fiscal Year Ended March 31, 2025 – YoY Comparisons
1. Statement of Income (1) Fiscal Year Ended March 31, 2025 – YoY Comparisons Fiscal year ended March 31, 2025 Fiscal year ended March 31, 2024 Results YoY change Results (100 million yen) NNFH (A) NCB (B) (A) - (B) NNFH (A) NCB (B) (A) – (B) NNFH (A) NCB (B) (A) – (B) (consolidated) (consolidated)
Slide 41: 1. Statement of Income (2) Comparison with Previous Forecast
1. Statement of Income (2) Fiscal Year Ended March 31, 2025 – Comparison with Previous Forecast Fiscal year ended March 31, 2025 Previous forecast for fiscal year ended Results Comparison with previous forecast March 31, 2025(Note) (100 million yen) NNFH (A) NCB (B) (A) - (B) NNFH (A) NCB (B) (A) -
Slide 42: 1. Statement of Income (3) Forecast for the Fiscal Year Ending March 31, 2026
1. Statement of Income (3) Forecast for the Fiscal Year Ending March 31, 2026 –YOY Comparisons Fiscal year ending March 31, 2026 Fiscal year ended March 31, 2025 Forecast YoY change Results (100 million yen) NNFH (A) NCB (B) (A) - (B) NNFH (A) NCB (B) (A) - (B) NNFH (A) NCB (B) (A) - (B) (consolidat
Slide 43: 2. Balance Sheet (1) Assets
2. Balance Sheet (1) Assets NNFH (Consolidated) NCB (Non-consolidated) (100 million yen) Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Assets Cash and due from banks 17,388 26,147 19,466 22,006 16,742 17,10
Slide 44: 2. Balance Sheet (2) Liabilities and Net Assets
2. Balance Sheet (2) Liabilities and Net Assets NNFH (Consolidated) NCB (Non-consolidated) (100 million yen) Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Liabilities and Net Assets Deposits 92,955 95,703 9
Slide 45: 3. Average Amount Outstanding, Yield, and Interest of Main Accounts (NCB)
3. Average Amount Outstanding, Yield, and Interest of Main Accounts (NCB) (Fiscal year ended) Forecast (100 million yen) March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024 March 31, 2025 March 31, 2026 Ave. amount Ave. amount Ave. amount Ave. amount Ave. amount Ave. Amount outstanding Yield
Slide 46: 4. Balance and Valuation Gains or Losses of Securities (NCB)
4. Balance and Valuation Gains or Losses of Securities (NCB) (Fiscal year ended) (100 million yen) March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024 March 31, 2025 ■ Balance sheet amount Government bonds 3,655 5,006 4,959 4,440 3,590 Local government bonds 3,321 4,007 4,219 4,798 5,211 Cor
Slide 47: 5. Breakdown of Credit Cost by Cause (NCB)
5. Breakdown of Credit Cost by Cause (NCB) (Fiscal year ended) (100 million yen) Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Provision for general reserve for possible loan losses (Reversal of allowance for loan losses) A 26 (18) (6) 3 14 Changes in loan-loss reserve ratio
Slide 48: 6. Capital Adequacy Ratio (Consolidated)
6. Capital Adequacy Ratio (Consolidated) ■ Capital Adequacy Ratio (Consolidated) Mar. 31, 2025 Mar. 31, 2024 (100 million yen) (A) (A) – (B) (B) Core capital: instruments and reserves A 5,179 176 5,003 Directly issued qualifying common share capital 5,180 199 4,981 Accumulated other comprehensive in
Slide 49: Nishi-Nippon Financial Holdings, Inc.
These materials have been prepared for the sole purpose of information provision, and do not constitute an invitation or solicitation to purchase or sell any specific securities. Any and all information described herein is subject to change or amendment without notice. These materials contain
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