Hyakugo Bank, Ltd. · TSE:8368
Hyakugo Bank — The Hyakugo Bank — H1 FY2025 Earnings Presentation
49 slides from Hyakugo Bank's earnings presentation, Dec 1, 2025
Slide 1: Presentation for FY2025 Interim Financial Results
Presentation for FY2025 Interim Financial Results Information meeting December 1, 2025 (Securities Code: 8368)
Slide 2: Table of Contents
Table of Contents Outline of FY 3/2026 Q2 (Interim) Financial Position P4 FY 3/2026 Financial Forecasts P9 Materiality P 10 Overview of the Medium-term Management Plan P 11 Progress of the Medium-term Management Plan P 12 Initiatives to Improve Corporate Value P 33 Appendix P 38 2
Slide 3: Summary
Summary FY 3/2026 Q2 (Interim) Results and FY 3/2026 Financial Forecasts • FY 3/2026 Q2 (interim) results - Consolidated net income attributable to shareholders of the parent increased 10.7% year-on-year • FY 3/2026 financial forecasts - The full-year financial forecasts has been revised upward, and
Slide 4: Financial Highlights (Consolidated)
Financial Highlights (Consolidated) Summary of FY 3/2026 Q2 (Interim) Financial Results (Consolidated) (Million yen) FY 9/24 FY 9/25 YoY change (100 million yen) FY 9/24 FY 9/25 YoY change Gross operating income (1) 34,211 32,833 (1,378) Interest and dividend on securities 126 158 32 Interest income
Slide 5: Interest Income (Non-Consolidated)
Interest Income (Non-Consolidated) An increase in interest on loans and securities contributed to higher interest income of 15.9% year-on-year Factors underlying changes in interest income ■ Deposit-loan yields ■ Returns on securities (Head office and all branches) (Domestic) investments (Domestic)
Slide 6: Fees and Commissions (Non-Consolidated)
Fees and Commissions (Non-Consolidated) Fees and commissions decreased 18.6% year-on-year, mainly due to a decline in housing-loan-related fees Fees and commissions Major factors underlying YoY changes (Million yen) Corporate solutions Depository assets-related Housing-loan-related Other commissions
Slide 7: Expenses (Non-Consolidated)
Expenses (Non-Consolidated) Expenses increased 4.4% year-on-year, mainly due to base pay increases and IT-related investments Expenses ■ Core OHR (6.74)P (Million yen) Personnel expenses Non-personnel expenses Taxes +885 61.15% 60.65% 61.07% 58.22% 59.84% 54.33% 21,394 20,811 19,613 20,000 19,925 20
Slide 8: Credit Costs (Non-Consolidated)
Credit Costs (Non-Consolidated) Decrease in the provision of specific allowance for loan losses caused a 23.3% year-on-year decline in credit costs Credit costs (non-consolidated) ■ Non-performing loans ■ Non-performing coverage ratio loans ratio (Million yen) (0.02) P Provision of general allowance
Slide 9: FY 3/2026 Forecasts
FY 3/2026 Forecasts Financial results are expected to exceed FY2024 levels on both a consolidated and non-consolidated basis, with record profits Non-consolidated Consolidated FY 3/26 FY 3/26 FY 3/26 FY 3/26 (Million yen) (initially (Million yen) (initially (after review) (after review) announced) a
Slide 10: Materiality
Materiality Defined the issues to address in order to achieve new growth based on the Bank’s corporate philosophy and corporate statement Theme Materiality Goal Develop, promote, and vitalize local industries by helping local companies solve (1) Creating vibrant communities management issues and enh
Slide 11: Overview of the Medium-term Management Plan
Overview of the Medium-term Management Plan Aim to build a more robust and efficient business structure for the banking business, its core business. By taking on the challenge of developing “new businesses that create new communities,” the Bank aims to create both economic value and social value, th
Slide 12: Progress on Financial and Non-Financial Targets
Progress on Financial and Non-Financial Targets Results in FY 9/25 FY2028 (Final Targets) ROE in consolidated net assets 4.43% 5% or higher Financial Targets 10.1 billion yen Consolidated net income (Interim net income attributable to 24 billion yen or more shareholders of the parent) 976.3 billion
Slide 13: Local Topics
Basic Strategy 01: Local Topics Creation of Social Value Preparations have begun for the 63rd Jingu Shikinen Sengu, scheduled for 2033. <Ise Jingu (Ise City, Mie Prefecture)> ■ Local Developments in Preparation for the Jingu Shikinen Sengu • During Shikinen Sengu years (periodic shrine reconstructio
Slide 14: New Business Creation Project: HYAKUGO INNOVATION LAB.
New Business Creation Project Basic Strategy 01: Creation of Social Value “HYAKUGO INNOVATION LAB.” With the participation of all employees, create a business that contributes to solving local issues and creating social value “HYAKUGO INNOVATION LAB.” Initiatives to Date (As of the End of September
Slide 15: Solve local issues
Basic Strategy 01: Solve local issues Creation of Social Value Actively engage in solving local issues by leveraging the network unique to banks Aim Activities Number of community issue engagements Aim to create “social value” and • Identification of local issues • Realization of safe and secure liv
Slide 16: New Business Creation as the Entire Group
Basic Strategy 01: New Business Creation as the Entire Group Creation of Social Value Strive for local revitalization and the development of diverse revenue streams by taking on challenges for new business opportunities beyond the framework of banking regulations Companies ■ Trends in the number of
Slide 17: Strengthening of Consulting: Corporate Sales Structure
Strengthening of Consulting Basic Strategy 02: Taking on Challenges for Growth <Strengthening of Corporate Sales Structure> Solve customers’ issues and enhance revenue by strengthening the corporate sales structure and expanding solution-oriented sales Changes in Corporate Solutions Fees Strengtheni
Slide 18: Business Succession & M&A / Automotive Industry Support
Strengthening of Consulting Basic Strategy 02: Taking on Challenges for Growth <Business Succession & M&A / Automotive Industry Support> Business Succession & M&A Support Automotive Industry Support ■ Number of business succession engagements* / M&A Main Activities in Automotive Industry Support eng
Slide 19: Strengthening of Depository Asset Sales
Strengthening of Consulting Basic Strategy 02: Taking on Challenges for Growth <Strengthening of Depository Asset Sales> The consolidated balance of bank and securities investment trusts has been steadily increasing under the Medium- term Management Plan. The aim is to improve profitability by stren
Slide 20: Housing Loans: No. 1 Regional Bank for 7 Consecutive Years
Basic Strategy 02: Strengthening of Consulting <Housing Loans> Taking on Challenges for Growth Although the origination targets were strategically revised starting in FY2024, the increase in housing loans ranked first among regional banks nationwide for seven consecutive years ■ Housing loans origin
Slide 21: Housing Loans: Rates, Balance and Delinquency
Basic Strategy 02: Strengthening of Consulting <Housing Loans> Taking on Challenges for Growth Trends in the Average Month-End Interest Rate for Housing Loans Housing Loan Balance and Delinquency / Default Status Existing loans (balance) Flow (new originations) 0.93% 0.96% ■ Housing loan balance (10
Slide 22: Increasing Deposits
Basic Strategy 02: Strengthening of Consulting <Increasing Deposits> Taking on Challenges for Growth Acquire sticky deposits by approaching customers based on life events and promoting non-face-to-face channels (Non-consolidated) ■ Life Plan-Based Approach Aimed at Becoming Customers’ Main Bank Inhe
Slide 23: Securities Strategy
Basic Strategy 02: Taking on Securities Strategy Challenges for Growth Managed the portfolio with consideration for asset allocation, replaced and traded low-yielding bonds amid rising interest rates and stock prices, and realized profits from stocks and investment trusts, maintaining the valuation
Slide 24: Securities Strategy
Basic Strategy 02: Securities Strategy Taking on Challenges for Growth Aim to increase interest income from securities by accumulating securities with a focus on yen-denominated bonds and improving yields ■ Trends in securities balance (100 million yen) ■ Trends in interest on securities * Book valu
Slide 25: Human Capital Indicators
Basic Strategy 03: Human Human Capital Indicators Resource Strategy Progress on Human Capital KPIs (as of September 30, 2025) Cumulative no. of personnel who have passed No. of No. of personnel who have Ratio of female executives professional qualification (posts equivalent to or higher Development
Slide 26: Development of Professional Human Resources
Basic Strategy 03: Development of Professional Human Resources Human Resource Strategy Aim for all employees to become “true professionals” through autonomous career development ■ Cumulative no. of personnel who have passed professional ■ Certification of professionals qualification examinations* an
Slide 27: Promotion of Diversity
Basic Strategy 03: Promotion of Diversity Human Resource Strategy Develop a better environment for women’s empowerment by increasing the number of diverse female role models ■ Trends in the number of female executives and Hold “Mirai Design Academy,” a training program to help female managers employ
Slide 28: Promotion of Regional DX
Promotion of Regional DX Basic Strategy 04: Digital Transformation Barcode Pay Expansion of Smartphone Banking Functionality <Barcode Pay> App that allows users to scan the barcode or Smartphone banking: Consolidation of QR code on convenience store payment slips services for individual customers wi
Slide 29: Customer Procedure DX
Customer Procedure DX Basic Strategy 04: Digital Transformation By streamlining operations and integrating face-to-face and non-face-to-face services in coordination with various internal systems and data, we aim to realize a customer-centric service that connects with The Hyakugo Bank anytime and a
Slide 30: Internal/Group DX
Internal/Group DX Basic Strategy 04: Digital Transformation By leveraging AI and generative AI, we aim to enhance operational efficiency, targeting both labor-saving at the individual employee level and workforce reduction at the organizational level through short-term and long-term strategies Initi
Slide 31: Data Utilization
Data Utilization Basic Strategy 04: Digital Transformation Enhance operational efficiency and sales capabilities by building a data-driven organization through increased intra-group data utilization Reinforcement of Data-Driven Sales Structure <Strengthen data utilization in the sales field> <Partne
Slide 32: Decarbonization of the Group / Cybersecurity
Basic Strategy 05: Decarbonization of the Group / Cybersecurity Strengthening of Strategic Foundation Work to reduce the environmental impact of the Group and move towards net-zero GHG emissions (Scope 1 and 2) Treat cybersecurity risks as part of the risk management of the entire organization and w
Slide 33: 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 Enhanced interest and Basic Strategy 02: Higher RORA service income Taki
Slide 34: 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 35: Cross-Shareholdings
Cross-Shareholdings ■ Trends in the balance (market value) of cross-shareholdings and their ratio to net assets (100 million yen) Verification of the significance of ownership and economic rationality Cross-Shareholdings Ratio to consolidated net assets (%) 3,422 • We verify the significance of owne
Slide 36: Cross-Shareholdings
Cross-Shareholdings ■ Trends in the amount of cross-shareholdings sold since FY2022 Previous Medium-term Current Medium-term (100 million yen) Management Plan Management Plan Status of Cross-shareholdings Reduction • As announced in the Medium-term Management Plan, the Bank plans to reduce its cross
Slide 37: 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 Dividends per
Slide 38: Appendix
Appendix 38
Slide 39: 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 2023 1,727 thousand people 22nd 7,477 thousand people 4th Concentration of specialized technologies: Factories for
Slide 40: Corporate Governance Reinforcement
Corporate Governance Reinforcement ■ Reinforcement of the PDCA Cycle in Corporate Governance Matters to Be Addressed Descriptions and Responses Clarify the departments in charge of corporate governance (Corporate Planning Section and Secretariat), Clarification of departments in charge which have no
Slide 41: Group Companies
Group Companies Verification and organizing services for Hyakugo Business Service Company Limited cash, etc. Storage, management, and printing- Hyakugo Heartful Service Company Limited related services for documents and ledgers, etc. Consolidated Investigation and assessment work for Subsidiaries Hy
Slide 42: Impact of Rising Yen Interest Rates
Impact of Rising Yen Interest Rates Impact of a 0.25% increase in yen interest rates on Yen Balance Sheet (bank’s non-consolidated basis) interest income ■Impact simulation * Policy rate assumption in the Medium-term Management Plan: 0.50% unchanged ■Summary of yen balance sheet <Reference> In the c
Slide 43: Deposits (Non-Consolidated)
Deposits (Non-Consolidated) * Including negotiable certificates of deposit Total deposits (average balance) Corporate deposits (average balance) (100 million yen) (100 million yen) Mie Prefecture Aichi Prefecture Tokyo / Osaka Mie Prefecture Aichi Prefecture Tokyo / Osaka 13,733 14,557 12,339 12,443
Slide 44: Depository assets
Depository assets Contract amount of acquired depository assets Depository assets balance (incl. Hyakugo Securities) (incl. Hyakugo Securities) (100 million yen) (100 million yen) Investment trusts Financial instrument brokerage Insurance Hyakugo Securities Company Investment trust balance Securitie
Slide 45: Loans
Loans Total loans (average balance) Housing loans (average balance) (100 million yen) (100 million yen) Mie Prefecture Aichi Prefecture Tokyo / Osaka 24,277 Mie Prefecture Aichi Prefecture Tokyo / Osaka Investment Finance Division 23,174 639 Ratio of loans to SMEs to total loans 20,895 611 (Based on
Slide 46: 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 9/25 12.55% 12.52% 12.33% 12.58% Equity capital (For equity ratio 2,807 2,878 2,898 calculation purpo
Slide 47: 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 277.0 billion yen and allocable capital of 186.0 billion yen, actual amount of risk is 86.2 billion yen (100 million ye
Slide 48: Outstanding Non-performing Loans by Disclosure Standard and Coverage
Outstanding Non-performing Loans by Disclosure Standard and Coverage Loans disclosed under the Financial Reconstruction Act and risk-managed claims (target: total credit exposure) Non-performing Loans under Internal Assessment Standard (target: total credit exposure) * Special attention loans, loans
Slide 49: Inquiries
Please direct inquiries concerning this document to: Corporate Planning Division, The Hyakugo Bank, Ltd. Watanabe / Bessho at Public Relations & Investor Relations The information concerning entities other than the Bank contained in this document has been quoted Department from publicly available in