77 Bank, Ltd. · TSE:8341
77 Bank — The 77 Bank — H1 FY2021 Earnings Presentation
43 slides from 77 Bank's earnings presentation, Dec 1, 2020
Slide 1: IR Presentation: Results for the First Half of FY Ending March 2021
IR Presentation Results for the First Half of Fiscal Year Ending March 31, 2021 December 1, 2020 Materials were prepared for the Bank’s presentation of its results for the first half of fiscal year ending March 31, 2021 held on December 1, 2020.
Slide 2: Contents
First Half of Fiscal Year Contents Ending March 31, 2021 Ⅰ．Financial Summary Ⅳ．Management Strategy □ Summary of profits and losses ３ □ Business environment 20 □ Interest income ４ □ Management philosophy/Bank image □ Loans and bills discounted/Deposits ５ sought by The 77 Bank 21 □ Securities 6 □ Grow
Slide 3: I. Financial Summary
I . Financial Summary SUSTAINABLE DEVELOPMENT GOALS CTO Tia SOARS EIR (SDGs) ERIE THIET. Grou CCRT 2 771 BANK
Slide 4: Summary of profits and losses
First Half of Fiscal Year I. Financial Summary Summary of profits and losses Ending March 31, 2021 (JPY bn, %) YoY change 1H 1H Increase/ Rate of FY2020 FY2021 Summary of profits and losses (Non-consolidated) Decrease change % ＜ Core operating income＞ Gross operating income 38.0 37.5 (0.5) (1.2) [ C
Slide 5: Interest income
First Half of Fiscal Year I. Financial Summary Interest income Ending March 31, 2021 (JPY bn) 1H 1H FY2020 FY2021 YoY change Interest income decreased JPY 2.3 billion year-on-year owing to Interest income 36.4 34.1 (2.3) a decrease in interest and dividends on securities. Investment income 37.6 34.9
Slide 6: Loans and bills discounted/Deposits
First Half of Fiscal Year I. Financial Summary Loans and bills discounted/Deposits Ending March 31, 2021 ・ Loans and bills discounted increased 4.8% year-on-year owing to efforts to bolster lending to SMEs and increased lending to large corporations. Interest on yen-denominated loans and bills disco
Slide 7: Securities (1)
First Half of Fiscal Year I. Financial Summary Securities (1) Ending March 31, 2021 Balance of marketable securities (on an amortized cost base) National gov. bonds Local gov. bonds The balance of marketable securities increased JPY (JPY bn) Corporate bonds Others 45.2 billion from the end of March
Slide 8: Securities (2)
First Half of Fiscal Year I. Financial Summary Securities (2) Ending March 31, 2021 Gains (losses) from evaluation of securities National gov. bonds Local gov. bonds Gains (losses) from evaluation of securities increased (JPY bn) Corporate bonds Others JPY 23.7 billion from the end of March 2020, pr
Slide 9: Fees and commissions
First Half of Fiscal Year I. Financial Summary Fees and commissions Ending March 31, 2021 Fees and commissions decreased JPY 0.4 billion year-on-year owing to decreased sales commissions of assets in custody due to self-imposed restraints on business activities associated with the spread of COVID-19
Slide 10: Expenses
First Half of Fiscal Year I. Financial Summary Expenses Ending March 31, 2021 Expenses decreased JPY 0.6 billion year-on-year, because of decreased personnel expenses due to a decrease in the number of employees from retirement and a decrease in the amount of overtime work, as well as decreased oper
Slide 11: Credit-related expenses/reserve for possible loan losses
Credit-related expenses/reserve for possible loan losses/ First Half of Fiscal Year I. Financial Summary credits disclosed under the Financial Reconstruction Law Ending March 31, 2021 Credit-related expenses increased JPY 2.4 billion year-on-year to JPY 5.6 billion, owing to increased lending as a m
Slide 12: II. Projected Performance
Il. Projected Performance SUSTAINABLE DEVELOPMENT Gé OALS CTOT Tid HiRes HISEER (SDGs) SRUEUT Grou CCRT 11 771 BANK
Slide 13: Projected performance for FY2021 (1)
First Half of Fiscal Year Ⅱ. Projected Performance Projected performance for FY2021 (1) Ending March 31, 2021 (JPY bn) FY2020 FY2021 YoY change <Interest rates and other assumptions underlying the projection (average)> Summary of profits and losses (Non-consolidated) (Results) (Forecast) Gross opera
Slide 14: Projected performance for FY2021 (2)
First Half of Fiscal Year Ⅱ. Projected Performance Projected performance for FY2021 (2) Ending March 31, 2021 ・ We expect interest income to decrease JPY 2.6 billion year-on-year, primarily owing to a decrease in interest on yen-denominated bonds, despite interest on loans and bills discounted remai
Slide 15: Progress of the Medium-term Management Plan
First Half of Fiscal Year Ⅱ. Projected Performance Progress of the Medium-term Management Plan Ending March 31, 2021 １．Targets (JPY bn, %) <Interest rates and other assumptions as well as forecasts (average)> (%, JPY) Medium-term FY2019 FY2020 FY2021 Results Forecast Management Plan target At the ti
Slide 16: III. Status of Medium-term Management Plan
Ⅲ. Status of Medium-term Management Plan 15
Slide 17: Results and issues of current Medium-term Management Plan (1)
Results and issues of current First Half of Fiscal Year Ⅲ. Status of Medium-term Management Plan Medium-term Management Plan (1) Ending March 31, 2021 Results of the Medium-term Management Plan “For The Customer & For The Future”—Best Consulting Bank Project— (Apr. 1, 2018 – Mar. 31, 2021) ・ Expande
Slide 18: Results and issues of current Medium-term Management Plan (2)
Results and issues of current First Half of Fiscal Year Ⅲ. Status of Medium-term Management Plan Medium-term Management Plan (2) Ending March 31, 2021 ◇ Unsolved issues Unable to overcome the Bank’s “high cost/low profit structure,” which was identified as our biggest issue Medium-term Management Pl
Slide 19: Direction of the next management plan
First Half of Fiscal Year Ⅲ. Status of Medium-term Management Plan Direction of the next management plan Ending March 31, 2021 Achievement of Regional market size management philosophy Overconcentration with 10-year strategy in Tokyo metropolitan area The 77 Bank Group laying the way Roles the 77 Ba
Slide 20: IV. Management Strategy
IV. Management Strategy SUSTAINABLE DEVELOPMENT Gé OALS CTOT Tid HiRes HISEER (SDGs) SRUEUT Grou CCRT 19 771 BANK
Slide 21: Business environment
First Half of Fiscal Year Ⅳ. Management Strategy Business environment Ending March 31, 2021 With the expansion of major automotive and electronics companies, the manufacturing industry is expected to become a driver for economic growth. In addition, economic concentration is advancing owing to activ
Slide 22: Management philosophy/Bank image sought by The 77 Bank
First Half of Fiscal Year Ⅳ. Management Strategy Management philosophy/Bank image sought by The 77 Bank Ending March 31, 2021 The Bank’s management philosophy was Bank Creed established as the Bank Creed in 1961. The The Bank’s mission is to absorb funds and line that states “the Bank’s progress goe
Slide 23: Growth Strategy (Corporate transactions)
Ⅳ. Management Strategy Growth Strategy （Corporate transactions） First Half of Fiscal Year Ending March 31, 2021 We will enhance clients’ understanding through business evaluations, while also utilizing the “comprehensive capabilities of the 77 Bank Group” to respond to various management issues face
Slide 24: Growth Strategy (Corporate transactions)
Ⅳ. Management Strategy Growth Strategy （Corporate transactions） First Half of Fiscal Year Ending March 31, 2021 We will continue to utilize business evaluations to increase loan assets in Miyagi Prefecture and the Tohoku region, etc. In addition, we will take steps to increase fees and commissions f
Slide 25: Growth Strategy (Retail transactions)
Ⅳ. Management Strategy Growth Strategy （Retail transactions） First Half of Fiscal Year Ending March 31, 2021 The number of new housing starts for condominium apartments increased year-on-year because construction started on major condominiums in Sendai City. The number of units scheduled for complet
Slide 26: Growth Strategy (Retail transactions)
Ⅳ. Management Strategy Growth Strategy （Retail transactions） First Half of Fiscal Year Ending March 31, 2021 ・ We will expand the scope of our customer base, primarily focusing on customers in the asset formation stage and average consumers, while also strengthening collaboration with 77 Securities
Slide 27: Growth Strategy (Marketable securities trading)
Growth Strategy（ Marketable securities trading ） First Half of Fiscal Year Ⅳ. Management Strategy Ending March 31, 2021 Strengthening marketable securities trading structure Composition ratio by type (on an amortized cost base) <Marketable securities trading structure> <Reinvestment in yen-bond taki
Slide 28: Growth Strategy (HR development)
First Half of Fiscal Year Ⅳ. Management Strategy Growth Strategy (HR development) Ending March 31, 2021 In addition to developing human resources with OJT, personal development, and training, we will also actively focus on developing specialists through external secondments. ■ Basic approach to huma
Slide 29: Growth Strategy (Group businesses)
First Half of Fiscal Year Ⅳ. Management Strategy Growth Strategy （Group businesses） Ending March 31, 2021 Through our Group businesses, we aim to deepen our comprehensive range of financial services, while also capturing customer demand and expanding the scope of our businesses Number of consulting
Slide 30: Productivity enhancement strategy (Paperwork-free/Digital)
First Half of Fiscal Year Ⅳ. Management Strategy Productivity enhancement strategy（ Paperwork-free/Digital ） Ending March 31, 2021 In addition to utilizing digital technologies to expand non-face-to-face channels, we will also make use of paperwork-free policies to create consulting opportunities at
Slide 31: Productivity enhancement strategy (Expenses)
Productivity enhancement strategy （ Expenses ） First Half of Fiscal Year Ⅳ. Management Strategy Ending March 31, 2021 （cases） Number of uses of contact points in Miyagi Prefecture 35,000 (daily average) We will work to improve OHR and 31,164 30,000 enhance labor productivity by overhauling Compared
Slide 32: Governance strategy (Capital policies)
First Half of Fiscal Year Ⅳ. Management Strategy Governance strategy (Capital policies) Ending March 31, 2021 In addition to maintaining a stable dividend, we will also endeavor to enhance internal reserves and maintain and enhance the soundness of our management. FY2016 FY2017 FY2018 FY2019 FY2020
Slide 33: Regional economy vitalization strategy (SDGs/ESG) (1)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(1) Ending March 31, 2021 The 77 Bank Group, in keeping with the philosophy of the Bank Creed passed down from our founders—“The Bank’s progress goes hand in hand with prosperity in the local community”
Slide 34: Regional economy vitalization strategy (SDGs/ESG) (2)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(2) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 35: Regional economy vitalization strategy (SDGs/ESG) (3)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(3) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 36: Regional economy vitalization strategy (SDGs/ESG) (4)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(4) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 37: Regional economy vitalization strategy (SDGs/ESG) (5)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(5) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 38: Regional economy vitalization strategy (SDGs/ESG) (6)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(6) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 39: Regional economy vitalization strategy (SDGs/ESG) (7)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(7) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 40: Regional economy vitalization strategy (SDGs/ESG) (8)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(8) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 41: Regional economy vitalization strategy (SDGs/ESG) (9)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(9) Ending March 31, 2021 Encouraging and supporting Revitalization of the regional Responding to global Advancing corporate the activities of our economy warming and climate change governance employees
Slide 42: Regional economy vitalization strategy (SDGs/ESG) (10)
First Half of Fiscal Year Ⅳ. Management Strategy Regional economy vitalization strategy（SDGｓ／ ESG）(10) Ending March 31, 2021 We aim at achieving co-prosperity with the region and dedicating ourselves to serving the region by deepening Social Contribution Activities interaction with regional society
Slide 43: Translation notice and projections disclaimer
This is a Japanese-English translation of the presentation material for your convenience. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct. Please note that the projections described in this document do not guarantee f