Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2022 Earnings Presentation
38 slides from Bank Of The Ryukyus,limited's earnings presentation, May 2023
Slide 1: Financial Results for FY 2022
Financial Results for FY 2022 Received an award for excellence in the 31st (Fiscal 2022) Bingata Design Contest, for future category “Cherry Blossoms and Cosmoses” by Asuka Kushi
Slide 2: Contents
Contents 1 Financial Results for the Fiscal Year Ended Public Construction Contract Amounts Net Credit Costs and March 31, 2023 and Backlog Amounts from Disclosed Bad Debt .... 19 Financial Summary Construction Orders .... 33 Workforce Planning .... 20 (Consolidated/ Numbers of New Housi
Slide 3: Financial Results for the Fiscal Year Ended March 31, 2023
1 Financial Results for the Fiscal Year Ended March 31, 2023 Received an award for excellence in the 31st (Fiscal 2022) Bingata Design Contest, for future category “Cherry Blossoms and Cosmoses” by Asuka Kushi
Slide 4: Financial Summary (Consolidated/Non-Consolidated)
Financial Summary (Consolidated/Non-Consolidated) Both consolidated and non-consolidated profit and income increased. (100 million yen) FY 2022 Bank of RYUCOM [Consolidated] the Ryukyus Ryukyu Lease OCS Ryugin DC Ryugin Hosho Others (Ended Mar. 2023) (For four months) Year on Year Ordinary revenue 6
Slide 5: Summary of Profit/Loss Trends
Summary of Profit/Loss Trends (Non-Consolidated: March 2019 to March 2023) (Million yen) Mar. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023 Year on Year Profit from customer services*1 3,472 3,619 3,835 5,097 5,691 +594 Deposit and loan balance*2 22,278 22,837 23,249 23,433 23,027 –406 Profit from se
Slide 6: Profit/Loss During the Fiscal Year Ended March 31, 2023
Profit/Loss During the Fiscal Year Ended March 31, 2023 Year-on-year net income was nearly level due to a decrease in Trading Division even with decreased credit cost and increased profit from customer services. (100 million yen) Net Income (Million yen) Factors Behind Year-on-year Increases and Dec
Slide 7: Profit from Customer Services
Profit from Customer Services Despite a decrease in the balance of deposits and loans, an increase in profit from customer services was driven by a decrease in expenses and an increase in profit from service charges. Profit from Customer Services (100 million yen) (100 million yen) (Million yen) Fac
Slide 8: Loans (1/2)
Loans (1/2) Loan balance remained steady for both corporations and individuals. On the other hand, interest on loans decreased due to lower interest rates on loans. Loan Balance Loan Interest Rate Syndicated loans Local gov’ts, others (excl. syndicated loans) Loan Interest Rate (100 million yen) Cor
Slide 9: Loans (2/2)
Loans (2/2) Mortgage loans remained strong. Rental and real estate loans were slow. (100 million yen) Syndicated Loans (%) (100 million yen) Rental and Real Estate Loans (%) Breakdown of Loan Balances by Use 1,500 Balance Interest Rate (Right Axis) 2.0 6,500 Balance Interest Rate (Right Axis) 3.0 In
Slide 10: COVID-19 Crisis Financial Support
COVID-19 Crisis Financial Support The amounts of provided loans with changed credit conditions have leveled out after the resumption of socioeconomic activities. In addition, 88% of our Bank’s zero-zero (effectively interest-free and unsecured) loan clients responded as refundable to our survey. Tre
Slide 11: Deposits, etc.
Deposits, etc. Deposit and other balances increased for both individuals and corporations, especially in corporate deposits and public funds. Interest on Deposits, etc. Deposit and Other Balances (%) Interest on deposits Interest on deposits (regional bank average) Individual 0.05 (100 million yen)
Slide 12: Profit from Service Charges
Profit from Service Charges Card business-related charges, corporate customer service charges, and mortgage loan service charges drove the increase in profit from service charges. Trends in Profit from Service Charges Factors Behind Year-on-year Increases (Excluding Group Credit Life Insurance and D
Slide 13: Assets in Custody and Inheritance Business
Assets in Custody and Inheritance Business By developing sales strengthening measures for assets in custody, sales revenue from investment trusts, single-premium life insurances increased. Since our efforts to the inheritance-related needs were widely spread and recognized, the number of consultatio
Slide 14: Corporate Customer Services
Corporate Customer Services Fee income was on an increasing trend, driven by structured finance, business succession and M&As, etc. ESG-related efforts were also started, supporting businesses from perspectives of Environment (E), Social (S) and Governance (G). Primary Consulting Business Services (
Slide 15: Card Business
Card Business As both numbers of Visa debit cards issued and card affiliates steadily increased due to the resumption of socio-economic activities, charges from card users and card affiliates increased. Total Numbers of Visa Debit Cards Issued and Number of Card Merchants and Profit Profit from Serv
Slide 16: Securities
Securities To strategically build up the balance of securities with the aim of improving yields over the medium to long term, while holding down the lengthening of durations. (100 million yen) (100 million yen) Balance of Securities 80 Realized Profits and Losses of Securities 80 (100 million yen) F
Slide 17: Overview of Forward-looking Provisioning (1/2)
Overview of Forward-looking Provisioning (1/2) [What is forward-looking provisioning] It is a method of rationally estimating future risks based on future macroeconomic indicators and the current/future outlook in the business cycle, allowing us to be well-prepared for future losses and crises. [Wha
Slide 18: Overview of Forward-looking Provisioning (2/2)
Overview of Forward-looking Provisioning (2/2) Provisions decreased due to the improvement of various macroeconomic indicators and the release of some of the accommodation business from overlay-applied industries of accommodation and medical/healthcare. Further release will be considered if the econ
Slide 19: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt Net credit cost decreased due to reversal cause by partial release of overlay in the accommodation industry and improvement of provision ratio. Net Credit Costs Disclosed Bad Debt Other processing costs Bankruptcy rehabilitation claims (100 million yen) (%) Re
Slide 20: Workforce Planning
Workforce Planning The active workforce decreased due to progress in efforts to improve operational efficiency. On the other hand, secondment, long-term training, and maternity/paternity leave were increased for non-active workforce. [Breakdown of non-active workforce] ・ On secondment : 82 History o
Slide 21: Expenses
Expenses Property expenses decreased year-on-year due to a reduction in deposit insurance premiums and system-related expenses, etc. Non-personnel Expenses (100 million yen) Others Deposit insurance premiums ① ① Branch Offices Branch offices ② System-related ② System-related 150 Expenses 115 120 124
Slide 22: Mechanization Investment Plan
Mechanization Investment Plan In the mechanization investment plan for FY 2023, mechanization investment for customer service and profit improvement measures, etc. accounts for approximately 25% of the total investment. We will continue to make strategic investments in order to achieve (1) expansion
Slide 23: Capital Adequacy Ratio
Capital Adequacy Ratio Both non-consolidated and consolidated capital adequacy ratios have been steadily increasing due to stably built up profit, etc. Non-consolidated Regulatory Capital Consolidated Regulatory Capital (100 million yen) and Capital Adequacy Ratio (%) (100 million yen) and Capital A
Slide 24: Forecast for FY 2023 (Ending March 31, 2024)
Forecast for FY 2023 (Ending March 31, 2024) Although loan interest and profit from service charges are expected to increase with the recovery of the business climate in Okinawa Prefecture, the overall profit is anticipated to decline due to an increase in funding costs caused by a strategic accumul
Slide 25: Dividends
Dividends For the FY 2022 (ended Mar. 2023), we plan to pay dividends unchanged from the previous fiscal year. From FY 2023 (ending Mar. 2024), we plan to increase the annual dividends by 2 yen per share. Annual Dividends Per Share (%) Consolidated Dividend Payout Ratios (Yen) 50 50.0 Consolidated d
Slide 26: ROE
ROE We recognize that ROE is basically in line with capital cost. With ROE that is exceeding the cost of shareholder’s equity in mind, we continuously strive to enhance PBR. (%) ROE and Cost of Shareholder’s Equity Consolidated PBR Enhancement through Dividend Payout ROE Improvement ROE 50.0 Competi
Slide 27: Summary of Okinawa Economy
2 Summary of Okinawa Economy Received an award for excellence in the 31st (Fiscal 2022) Bingata Design Contest, for future category “Cherry Blossoms and Cosmoses” by Asuka Kushi
Slide 28: Tankan Survey
Tankan Survey Due to the resumption of socio-economic activities, the tourism industry has been recovering. Business Sentiment DI (Good/Bad) Prospects Economic Overview of Okinawa Prefecture 32 Nationwide Okinawa 20 24 25 According to the Tankan’s business sentiment, the 12 economy in Okinawa Pref
Slide 29: Increase/Decrease of Population and Number of Tourists
Increase/Decrease of Population and Number of Tourists The total population in Okinawa Prefecture has nearly remained unchanged, but declined for the first time since the reversion of Okinawa to Japan in 1972. The number of tourists remained strong due to the lifting of movement restrictions against
Slide 30: Hotel Occupancy Rates and Opening Plan
Hotel Occupancy Rates and Opening Plan With a recovery in tourism demand, hotel occupancy rates are returning to 2019 levels, prior to the COVID-19 Crisis. Also, investment in Okinawa is strong, and luxury hotels are expected to open continuously in 2023 and beyond. Occupancy Rates for Major Okinawa
Slide 31: Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies
Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies Increasing demand in tourism and other factors have led to a significant improvement in job- openings-to-applicants ratios, recovering to the situation before the COVID-19 Crisis. The number of corporate bankruptcies h
Slide 32: Official Land Price and Construction Unit Price
Official Land Price and Construction Unit Price Official land prices increased 3.6% year-on-year on average for all land uses. This is the tenth straight year of increase, and the gain was increased 1.6 points higher year-on-year . Construction unit price also tended to be higher than that of the na
Slide 33: Public Construction Contract Amounts and Backlog Amounts from Construction Order
Public Construction Contract Amounts and Backlog Amounts from Construction Order Public construction contract amounts remained steady in the COVID-19 Crisis, and currently have increased significantly. The variation rate of backlog amounts from the construction order has also remained strong. Public
Slide 34: Numbers of New Housing Construction Projects Started and Consumption Trends
Numbers of New Housing Construction Projects Started and Consumption Trends The number of new housing construction projects started turned upward for the first time in five years, and the decline in the rental was also reduced. Consumption trends remain steady. Numbers of New Housing Construction Co
Slide 35: About Bank of the Ryukyus
3 About Bank of the Ryukyus Received an award for excellence in the 31st (Fiscal 2022) Bingata Design Contest, for future category “Cherry Blossoms and Cosmoses” by Asuka Kushi
Slide 36: Bank of the Ryukyus Overview
Bank of the Ryukyus Overview Company Profile Affiliated Companies Establishment May 1, 1948 Address Establishment 1-7-1 Kumoji, Naha, Okinawa Prefecture May 10, 1972 Capital 346 million yen (100% stock ownership by Bank of the Ryukyus) Business Fields Leasing and installment-selling of information-r
Slide 37: Bank of the Ryukyus History
Bank of the Ryukyus History May 1948 Precursor organization established via the Military Government Ordinance No. 1 Bank of the Ryukyus was originally established on May 1, 1948 as a special banking organization via the Military Government Ordinance, and the US government The Bank changed from speci
Slide 38: 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