Chugin Financial Group,inc. · TSE:5832
Chugin Financial Group,inc — H1 FY2022 Earnings Presentation
51 slides from Chugin Financial Group,inc's earnings presentation, Mar 1, 2023
Slide 1: 1H FY2022 Earnings Results Briefing (Reference Materials)
1H FY2022 Earnings Results Briefing (Reference Materials)
Slide 2: Table of Contents
Table of Contents Industrial Structure of Okayama Prefecture Management Indices, etc. of The Chugoku Bank, Ltd. Summary of Earnings 22 Economic Scale of Okayama Prefecture 4 Breakdown of Ordinary Revenue 24 Breakdown of Ordinary Expenses 25 Industrial Structure of Okayama Prefecture 6 Breakdown of E
Slide 3: Industrial Structure of Okayama Prefecture
Industrial Structure of Okayama Prefecture
Slide 4: Economic Scale of Okayama Prefecture
Economic Scale of Okayama Prefecture Nationwide Items Results Rank Source Survey date share (%) Nationwide Survey on Area 7,114 k㎡ 1.9 17 Jul. 2022 Area by Municipality Population 1,879,000 people 1.5 20 Population Estimates Jan. 2022 Number of households 861,452 1.4 18 Population Estimates Jan. 202
Slide 5: Economic Scale of Okayama Prefecture
Economic Scale of Okayama Prefecture (Trillion yen) (%) Gross Domestic Product by Prefecture at Current Prices and YoY Change 116 45 5 40 YoY growth (right scale) 35 30 0 25 20 Gross prefectural domestic product at 15 current prices (left scale) -5 10 5 0 -10 Kanagawa Iwate Tokyo Saga Wakayama Ibara
Slide 6: Industrial Structure of Okayama Prefecture (1)
Industrial Structure of Okayama Prefecture (1) Percentage mix of gross domestic Professional/science technology, business Finance, product by economic activity Health and support services Construction Insurance hygiene, social Wholesale, Transport, Public Manufacturing Education Information & Other
Slide 7: Industrial Structure of Okayama Prefecture (2)
Industrial Structure of Okayama Prefecture (2) Percentage mix of value of manufactured goods shipments (2020) Electric Textiles General machinery Transport (%) Food and Beverages Chemicals Petroleum Steel Other machinery machinery Okayama 10.6 2.8 14.9 15.8 11.1 7.7 6.5 12.2 18.4 岡山 12.9 1.1 9.5 3.7
Slide 8: Growth Infrastructure and Potential of Okayama Prefecture (1)
Growth Infrastructure and Potential of Okayama Prefecture (1) Population and number of households of the Chugoku-Shikoku region (Persons, households) Tottori Shimane Okayama Hiroshima Yamaguchi Tokushima Kagawa Ehime Kochi （％） 3,000,000 2.0 Population Number of households Change in population Change
Slide 9: Growth Infrastructure and Potential of Okayama Prefecture (2)
Growth Infrastructure and Potential of Okayama Prefecture (2) Future population estimates of Okayama Prefecture (Thousand people) 2,000 Estimates 1,950 1,922 1,888 1,900 1,846 1,850 1,797 1,800 1,742 1,750 1,681 1,700 1,650 1,620 1,600 1,550 1,500 2015 2020 2025 2030 2035 2040 2045 Source: National
Slide 10: Growth Infrastructure and Potential of Okayama Prefecture (3)
Growth Infrastructure and Potential of Okayama Prefecture (3) A crossing point of land traffic in Western Japan Two expressways cross a third expressway at two points in Okayama. Sea of Japan Yonago, Okayama and Seto-Chuo Expressways Chugoku Expressway Sanyo Expressway Seto Inland Sea • Okayama and
Slide 11: Growth Infrastructure and Potential of Okayama Prefecture (4)
Growth Infrastructure and Potential of Okayama Prefecture (4) Road transport volume in the Chugoku-Shikoku region (Million ton-kilometer) (Thousand people-kilometer) 7,000 Cargo transportation (left scale) 700,000 千ドル Passenger transportation (right scale) 6,000 600,000 5,000 500,000 4,000 400,000 3
Slide 12: Growth Infrastructure and Potential of Okayama Prefecture (5)
Growth Infrastructure and Potential of Okayama Prefecture (5) A tip for the solution of Japan’s problems can be found in the center of Okayama Prefecture. Town Disaster prevention Kibi Highland City Initiatives for “Super City Plan” (Re-proposal) development The Kibikogen Highlands, which contain Ki
Slide 13: Economic Status of Okayama Prefecture
Economic Status of Okayama Prefecture
Slide 14: Local Economic Trends (1)
Local Economic Trends (1) The economy of Okayama Prefecture is picking up amid the lessening impact of COVID-19. BSI Sub-prime mortgage crisis Terrorist attacks on the US Consumption tax hike 20 Asian financial crisis BOJ quantitative easing Lehman shock Consumption tax hike 13.5 IT bubble 11.2 10 I
Slide 15: Local Economic Trends (2)
Local Economic Trends (2) Industrial production: Picking up gradually [Industrial production index] (Year 2015 indexed at 100; seasonally adjusted) 110 100 90 80 Jan. 2017 Jan. 2018 Jan. 2019 Jan. 2020 Jan. 2021 Jan. 2022 Source: Okayama Prefecture Statistical Analysis Section Exports: Showing an up
Slide 16: Local Economic Trends (3)
Local Economic Trends (3) Capital investment: Showing an upward trend mainly in the manufacturing industry [YoY change in capital investment] Okayama Nationwide （％） Manufacturing Non-manufacturing Total Manufacturing Non-manufacturing Total FY2019 result 4.6 - 15.1 - 2.1 0.9 - 1.5 - 0.6 FY2020 resul
Slide 17: Local Economic Trends (4)
Local Economic Trends (4) Consumer spending: Picking up on the back of a lower impact of COVID-19 [Department store and supermarket sales (all stores; YoY)] (%) 15 10 5 0 -5 -10 -15 Jan. 2018 Jan. 2019 Jan. 2020 Jan. 2021 Jan. 2022 Source: Chugoku Bureau of Economy, Trade and Industry [New passenger
Slide 18: Local Economic Trends (5)
Local Economic Trends (5) Housing investment: Upward trend [New housing starts (six-month moving average)] (Units) 1,400 1,200 1,000 800 600 Jan. 2018 Jan. 2019 Jan. 2020 Jan. 2021 Jan. 2022 Source: MLIT [Rental housing starts (six-month moving average)] (Units) 800 600 400 200 Jan. Jan. Jan. Jan. J
Slide 19: Local Economic Trends (6)
Local Economic Trends (6) Employment situation: Showing a slow recovery [Jobs-to-applicants ratio (seasonally adjusted)] (Times) 2.2 2.0 1.8 1.6 1.4 1.2 Jan. Jan. Jan. Jan. Jan. 2018 2019 2020 2021 2022 Source: Employment Service Section, Okayama Labor Bureau, Ministry of Health, Labour and Welfare
Slide 20: Local Economic Trends (7)
Local Economic Trends (7) Land prices: A sign of recovery is visible. [Official land price (YoY)] (%) 2.0 1.0 Residential area 0.0 Commercial area -1.0 -2.0 -3.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: Hilly and Mountainous Areas Development Division, Okayama Prefecture Corpor
Slide 21: Management Indices, etc. of The Chugoku Bank, Ltd.
Management Indices, etc. of The Chugoku Bank, Ltd.
Slide 22: Summary of Earnings (1)
Summary of Earnings (1) [Consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Million yen) 1H 1H 1H 1H 1H Ordinary revenue 132,445 64,758 128,621 63,780 127,318 58,173 116,976 60,594 128,565 91,459 Ordinary profit 30,922 14,012 23,696 12,943 17,463 11,967 21,252 15,20
Slide 23: Summary of Earnings (2)
Summary of Earnings (2) [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Million yen) 1H 1H 1H 1H 1H Bond-related gains/losses - 2,481 - 316 1,117 1,084 - 524 822 - 552 - 447 - 2,949 - 15,362 Gains on sales of bonds 3,827 2,679 4,865 1,727 3,026 1,407 2,496 3
Slide 24: Breakdown of Ordinary Revenue
Breakdown of Ordinary Revenue [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Million yen) 1H 1H 1H 1H 1H Ordinary revenue 116,499 57,415 113,461 56,143 110,829 49,824 99,765 51,869 110,337 82,338 Banking revenue 103,360 53,545 104,638 51,457 100,630 46,415
Slide 25: Breakdown of Ordinary Expenses
Breakdown of Ordinary Expenses [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Million yen) 1H 1H 1H 1H 1H Ordinary expenses 88,567 44,196 91,541 43,899 95,353 38,712 80,720 37,521 86,928 63,113 Banking expenses 81,918 41,870 83,680 39,680 82,776 35,161 70,8
Slide 26: Breakdown of Expenses
Breakdown of Expenses [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Million yen) 1H 1H 1H 1H 1H Expenses (1) 55,666 27,232 54,211 27,397 54,010 26,404 52,783 25,914 51,986 25,330 Personnel expenses 28,910 13,953 27,834 14,164 28,204 13,794 27,725 14,022 28
Slide 27: Principal Returns
Principal Returns [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (%) 1H 1H 1H 1H 1H 1. Interest-bearing asset yield 1.04 1.05 1.03 1.02 0.98 0.84 0.79 0.77 0.72 0.93 Loan yield 1.03 1.08 1.08 1.06 1.04 0.92 0.90 0.87 0.87 1.00 Securities yield 1.24 1.23 1.17
Slide 28: Major Accounts (Year-end Balance): Assets
Major Accounts (Year-end Balance): Assets [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Total assets 8,439.5 8,367.9 8,225.7 8,357.9 8,113.6 8,741.7 9,122.6 9,854.2 10,177.9 9,660.9 Management account 7,520.9 7,587.1 7,322.4 7,5
Slide 29: Major Accounts (Year-end Balance): Liabilities and Net Assets
Major Accounts (Year-end Balance): Liabilities and Net Assets [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Total liabilities and net assets 8,439.5 8,367.9 8,225.7 8,357.9 8,113.6 8,741.7 9,122.6 9,854.2 10,177.9 9,660.9 Total
Slide 30: Major Accounts (Average Balance): Assets
Major Accounts (Average Balance): Assets [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Total assets 8,098.6 8,157.4 8,155.4 8,173.8 8,216.0 8,563.5 8,754.4 9,333.7 9,639.6 10,020.7 Management account 7,705.6 7,750.7 7,748.4 7,76
Slide 31: Major Accounts (Average Balance): Liabilities and Net Assets
Major Accounts (Average Balance): Liabilities and Net Assets [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Total liabilities and net assets 8,098.6 8,157.4 8,155.4 8,173.8 8,216.0 8,563.5 8,754.4 9,333.7 9,639.6 10,020.7 Total l
Slide 32: Deposits (Year-end Balance)
Deposits (Year-end Balance) [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Okayama 4,902.6 4,886.4 5,095.3 4,971.2 5,186.3 5,485.5 5,726.0 5,725.9 5,938.8 5,903.5 Individuals 3,631.1 3,707.2 3,734.7 3,761.0 3,832.7 3,994.1 4,108.
Slide 33: Deposits (Average Balance)
Deposits (Average Balance) [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Okayama 4,700.3 4,858.9 4,875.4 5,000.8 5,016.6 5,403.1 5,465.3 5,746.8 5,766.8 5,982.4 Individuals 3,598.1 3,675.5 3,705.4 3,768.1 3,791.5 3,945.7 4,003.3
Slide 34: Loans (Year-end Balance)
Loans (Year-end Balance) [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H General loans 4,154.3 4,209.8 4,298.2 4,281.1 4,408.7 4,565.9 4,666.3 4,679.2 4,808.7 4,957.7 Large companies 791.9 777.8 775.4 741.1 765.9 814.9 834.4 805.3
Slide 35: Loans (Average Balance)
Loans (Average Balance) [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H General loans 4,029.5 4,168.0 4,219.4 4,274.4 4,311.3 4,495.4 4,561.0 4,673.5 4,699.2 4,862.2 Local development 1,923.7 2,004.3 2,038.1 2,081.9 2,100.8 2,192.
Slide 36: Loans by Industry (Year-end Balance)
Loans by Industry (Year-end Balance) [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Domestic branches 4,656.1 4,706.1 4,786.4 4,761.6 4,884.5 5,035.8 5,122.1 5,134.3 5,244.6 5,387.6 Manufacturing 700.3 665.5 675.7 644.3 673.1 703
Slide 37: Loans by Industry (Composition Ratio)
Loans by Industry (Composition Ratio) [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 1H 1H 1H 1H 1H Domestic branches 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Manufacturing 15.0% 14.1% 14.1% 13.5% 13.8% 14.0% 13.9% 13.1% 13.3% 12
Slide 38: Market Shares of Deposits
Market Shares of Deposits [Year-end balance] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (%) 1H 1H 1H 1H 1H Okayama Chugoku Bank 48.6 48.9 49.4 49.2 49.8 49.8 50.3 50.4 51.1 51.2 Other banks 51.4 51.1 50.6 50.8 50.2 50.2 49.7 49.6 48.9 48.8 Regional banks except for Chugoku
Slide 39: Market Share of Loans
Market Share of Loans [Year-end balance] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (%) 1H 1H 1H 1H 1H Okayama Chugoku Bank 43.0 43.1 43.0 42.6 42.8 42.8 42.9 43.2 43.4 43.6 Other banks 57.0 56.9 57.0 57.4 57.2 57.2 57.1 56.8 56.6 56.4 Regional banks except for Chugoku Ban
Slide 40: Securities
Securities Balance by type [Non-consolidated] FY2017 FY2018 FY2018 FY2019 FY2019 FY2020 FY2020 FY2021 FY2021 FY2022 (Billion yen) 1H 1H 1H 1H 1H Year-end balance 2,620.8 2,507.4 2,394.9 2,458.7 2,345.1 2,391.3 2,622.5 2,565.3 2,509.8 2,515.4 JGBs 853.6 764.9 650.2 609.1 653.4 682.7 756.5 676.2 694.2
Slide 41: Balance and Durations of Securities by Remaining Period
Balance and Durations of Securities by Remaining Period Outstanding balance by remaining period to maturity for yen-denominated Securities 9,000 900 (Billion yen) 1H FY2018 8,000 800 1H FY2019 1H FY2020 7,000 700 1H FY2021 1H FY2022 6,000 600 5,000 500 4,000 400 3,000 300 2,000 200 1,000 100 0 1 yea
Slide 42: Handling of Housing Loans
Handling of Housing Loans [Loans executed by interest type (new houses + refinancing)] [Breakdown of use of loans executed] (%) 140 Refinancing, etc. Billion Long-term fixed rate yen 10-year fixed rate 7.0 5-year fixed rate 120 3-year fixed rate Floating New houses 93.0 100 Total of loans executed d
Slide 43: Non-performing Loans
Non-performing Loans Loans disclosed based on the Financial Reconstruction Act [Non-consolidated] End of End of End of End of End of End of End of End of End of End of (Million yen) Mar. 2018 Sep. 2018 Mar. 2019 Sep. 2019 Mar. 2020 Sep. 2020 Mar. 2021 Sep. 2021 Mar. 2022 Sep. 2022 Bankrupt/de facto
Slide 44: Transition of Debtor Categories: 1H
Transition of Debtor Categories: 1H (Upper level: Number of debtors; Lower level: Value (Billion yen)) Favorable Deterio-ration End of Sep. 2022 turnaround Other loans Manage-ment Near De facto Other Performing requiring Bankrupt required bankruptcy bankruptcy (See Note) attention Performing 153,618
Slide 45: Transition of Debtor Categories: 1H (Composition)
Transition of Debtor Categories: 1H (Composition) (Upper level: Number of debtors; Lower level: Value (Billion yen)) Favorable Deterio-ration End of Sep. 2022 turnaround Other loans Manage-ment Near De facto Other Performing requiring Bankrupt required bankruptcy bankruptcy (See Note) attention Perf
Slide 46: Capital Adequacy Ratio
Capital Adequacy Ratio [Non-consolidated] (%, Billion yen) FY2019 1H FY2019 FY2020 1H FY2020 FY2021 1H FY2021 FY2022 1H FY2022 Overall capital adequacy ratio 12.56 13.25 12.70 12.63 13.01 13.41 13.23 12.17 Tier 1 ratio 12.56 13.25 12.70 12.63 12.77 13.17 12.98 11.92 Tier 1 ratio including common sha
Slide 47: Capital Allocation and Integration Risks
Capital Allocation and Integration Risks 1H FY2022 Result 2H FY2022 Plan [Allocation Figures in parentheses [Allocation source] (Billion yen) (Billion yen) source] represent comparison with Acceptable risk level (1) Allocated capital 1H FY2022. (1) Allocated capital 488.7 Integration 479.4 Integrati
Slide 48: Use of Allocated Capital and Risk Exposure Assumption
Use of Allocated Capital and Risk Exposure Assumption 資本配賦と統合リスクの状況（補足） Capital Allocation and Integration Risk (Supplement) 2022年度上半期における資本配賦と統合リスクの状況、および2022年度下半期における資本配賦の状況は、下表のとおりです。 The following table indicates capital allocation and integration risks in 1H FY2022 and capital allocation in 2H
Slide 49: Group Companies
Group Companies Business Real 1H 1H 1H ownership FY2019 FY 2020 FY2021 FY2020 FY2021 FY2022 (Million yen, %) ratio Ordinary revenue 12,038 6,370 12,453 6,534 13,339 7,006 Chugin Lease Co., Ltd. Leasing 100.00 Ordinary profit 764 446 537 24 248 188 Profit 523 324 382 47 195 160 Ordinary revenue 1,744
Slide 50: Key Press Releases
Key Press Releases 2022 April 1: Establishment of Chugin Capital Partners, Limited April 6: Establishment of “TSUBASA Diversity and Inclusion Declaration” April 26: Notice on winning the first prize of “R&I Fund Award 2022” April 27: Reinforcement of the initiatives for sustainability management Apr
Slide 51: For inquiries regarding this document, please contact
For inquiries regarding this document, please contact: Management Planning Department, Chugin Financial Group, Inc. Mr. Shimizu / Mr. Matsuo Telephone: +81-86-234-6519 Email: souki01@chugin.jp
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