Bank Of The Ryukyus,limited · TSE:8399
Bank Of The Ryukyus,limited — FY2025 Earnings Presentation
65 slides from Bank Of The Ryukyus,limited's earnings presentation, May 2026
Slide 1: Investor Presentation: Financial Results Briefings for FY2025
Investor Presentation Financial Results Briefings for FY2025 (Ended Mar. 2026) Received a Technical Prize in the General Category of the 34th (Fiscal 2025) Bingata Design Contest “Echoing Light” by Haruka Kuniyoshi
Slide 2: Contents
Contents To Our Investors ････3 Individual Consulting Strategies ････22 ■Materials Key Messages ････4 Cashless Strategies ････23 Financial Summary ････39 Securities Investment Strategies ････24 Performance Digest ････40 ■Performance Highlights for Expense Control ････25 Net Interest Income ････41 FY
Slide 3: To Our Investors
To Our Investors Okinawa Prefecture has high growth potential compared to the rest of the country, driven by factors such as demographic trends and growing tourism demand. Leveraging our deposit and loan base which holds the top market share in the prefecture, and drawing on our strength of strong r
Slide 4: Key Messages
Key Messages In addition to steady revenue growth, the Bank holds the top market share in the prefecture for both deposits and loans. The Bank strengthened shareholder returns, achieved its medium-term management plan targets two years ahead of schedule, and revised those targets upward. Financial R
Slide 5: Performance Highlights for FY2025 (Ended Mar. 2026)
Performance Highlights for FY2025 (Ended Mar. 2026)
Slide 6: Key Points of Financial Results for the Current Fiscal Year
Key Points of Financial Results for the Current Fiscal Year Driven primarily by growth in financial income, the Bank achieved increased revenue and profit on both a consolidated and non- consolidated basis. Consolidated: Increase Non-consolidated: Increase in Revenue and Profit in Revenue and Profit
Slide 7: Profits (Net Core Business Profit)
Profits (Net Core Business Profit) This represents an increase of 3.9 billion yen year on year, driven by a significant rise in net interest income from loans and deposits, as well as interest and dividend income from securities, against the backdrop of the Bank of Japan’s policy rate hike. Trends i
Slide 8: Profit (Net Income)
Profit (Net Income) Driven by an increase in core operating profit and a rebound in credit costs, net income rose by 3.4 billion yen YoY, reaching a record high. Trends in interim net income Factors behind changes in net income (100 million yen) (100 million yen) 3 5 11 13 Decreased gains and losses
Slide 9: Deposit and Loan Balances
Deposit and Loan Balances Deposits turned to a 4.2% increase YoY, driven by growth in deposits from individuals, corporations, and public funds. Loans increased by 5.4% YoY, driven by growth in corporate loans within the prefecture, syndicated loans, and mortgage loans within the prefecture. Deposit
Slide 10: Deposit and Loan Interest Rates
Deposit and Loan Interest Rates Against the backdrop of rising interest rates, both deposit and loan interest rates have increased. Progress in improving profit margins led to an increase in interest income. Deposits, etc. Yield Yield Spread (Loan Yield – Deposit Yield) Our Bank (%) (%) 0.19 Interes
Slide 11: Fees and commissions
Fees and commissions Fees and commissions remained strong. Its ratio of fees and commissions to deposit balance ranks among the highest among regional banks of comparable size. Trends in the Ratio of Fees and Commissions Trends in Fees and Commissions to Deposit Balance*1 (100 million yen) (%) 1 6,0
Slide 12: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt Net credit costs decreased YoY due to lower provision for doubtful accounts. Disclosed receivables decreased by 6.5 billion yen YoY due to upgrades and collections, and the disclosed receivables ratio fell to 2.43%. Net Credit Costs Amount of Disclosed Receiva
Slide 13: Shareholder Returns
Shareholder Returns Against the backdrop of improved profitability, the Bank is strengthening its capital base, has decided to increase its dividend, and is revising its shareholder return policy. Trend s in Annual Dividends Per Share and Shareholder return policy: Dividend Payout Ratios Aim to main
Slide 14: Medium-Term Management Plan 'Empower 2025' Revised Targets and Progress
Medium-Term Management Plan “Empower 2025” Revised Targets and Progress The medium-term management plan is progressing smoothly, driven in part by growth in net interest income from loans and deposits resulting from rising interest rates. Based on this, the Bank has raised its management targets (fi
Slide 15: Forecast for FY2026 (Ending March 31, 2027)
Forecast for FY2026 (Ending March 31, 2027) Although expenses are expected to increase due to costs associated with the new headquarters building, profits are forecast to rise in FY2026 as growth in net interest income from loans and deposits, together with higher interest and dividend income on sec
Slide 16: Key Strategies
i) Key Strategies
Slide 17: Potential of Okinawa (1)
Potential of Okinawa (1) Against the backdrop of Okinawa’s expanding economy, and given that the prefecture continues to offer room for growth in employment and investment trends, the Bank which holds the top market share in the prefecture, will strive to further support the development of the regio
Slide 18: Potential of Okinawa (2)
Potential of Okinawa (2) •In August 2024, the areas surrounding Naha Airport, Naha Port facilities, the Makiminato Service Area, and Futenma Airfield were designated as “Key Hubs for Value Creation.” To realize the future vision of a “gateway open to the world” that symbolizes Okinawa’s evolution in
Slide 19: Deposit Strategies
Deposit Strategies The Bank will promote the use of digital channels to encourage customers to make it their primary bank, thereby increasing retail deposits. It will also revamp its sales structure to integrate corporate and retail operations, with the aim of increasing corporate deposits and loans
Slide 20: Loan Strategies
Strengthen Loan Strategies profitability The Bank aims to increase lending by strengthening sales activities to expand its customer base and market share, as well as by expanding its personal loan business. Forecast of Loan Balance (Average Balance) Initiatives to Increase Lending Volume Loan balanc
Slide 21: Corporate Consulting Strategies
Corporate Consulting Strategies In corporate markets with significant growth potential such as M&A, business succession, and tourism investment, the Bank will contribute to the growth of the regional economy byleveraging its strengths in consulting and project finance. Business Succession Needs and
Slide 22: Individual Consulting Strategies
Individual Consulting Strategies In the growing inheritance and asset succession market, the Bank will leverage its strengths including its extensive track record to maximize customer LTV* by expanding into various services centered on inheritance consulting and creating opportunities to build relat
Slide 23: Cashless Strategies
Cashless Strategies Contribute to the growth of the prefectural economy while improving convenience for prefectural residents and visitors by helping build a Cashless Island, and expand its business domain by providing payment platforms. The Strengths of Ryukyu Bank’s The Expanding Cashless Market C
Slide 24: Securities Investment Strategies
Securities Investment Strategies With the base portfolio (comprising primarily Japanese government bonds, including bonds with remaining maturities of approximately 0 to 5 years and 10-year Japanese government bonds held to maturity) as the core, the Bank will adjust duration in light of interest ra
Slide 25: Expense Control
Expense Control Operating expenses increased due to the impact of facility-related expenses and taxes associated with the new headquarters and other factors. Investments in human capital and system-related (strategic projects) investments will continue. Breakdown of Expenses System Investment ◼ Work
Slide 26: Alliances (Wide-Area Collaboration × Local Collaboration)
Alliances (Wide-Area Collaboration × Local Collaboration) Through wide-area collaboration and partnerships with other banks within the prefecture, the Bank will quickly acquire insights from leading regional banks regarding digital services, advanced financing, and human capital development. The Ban
Slide 27: Corporate Value Enhancement Initiatives
Corporate Value Enhancement Initiatives
Slide 28: Overview of Medium-Term Management Plan 'Empower 2025'
Overview of Medium-Term Management Plan “Empower 2025 (April 2025 to March 2028)” The Bank aims to enhance the effectiveness of its management plan through the steady implementation of its key strategies, with the goal of realizing its long-term vision. Long-Term Vision A financial group that grows
Slide 29: Current Situation and Future Vision
Current Situation and Future Vision Enhancement initiatives to increase net interest income (deposits, loans, and securities) ROE and Cost of Shareholder’s Equity (%) Strengthen Improve risk-weighted asset profitability profitability 8.5 Expansion of service-based businesses Enhance (cashless busine
Slide 30: Build a human capital management and strategic human resources portfolio
Build a human capital management and strategic human resources portfolio The Bank will continue to actively recruit, develop, and improve the work environment in order to build a strategic human resources portfolio that will enable it to steadily implement various initiatives. Fundamentals of Human
Slide 31: Improving Productivity and Competitiveness Through the Use of AI, Data, and DX
Improving Productivity and Competitiveness Through the Use of AI, Data, and DX ・The Bank will boost productivity through the systematic use of AI and allocate the resulting resources to supporting its branch offices and new business areas. ・The Bank will strengthen its profitability and competitiven
Slide 32: Initiatives for Regional Revitalization (1)
Initiatives for Regional Revitalization (1) The Bank will evolve its cashless business from a mere payment service into a “local lifestyle infrastructure” and work toward realizing a Cashless Island. International Brand Contactless Payment for Public Service Area Transportation to Be Introduced in t
Slide 33: Initiatives for Regional Revitalization (2)
Initiatives for Regional Revitalization (2) The Bank will foster high-value-added startups originating in the local area, leading to the creation and development of cutting-edge technologies and new industries. Fund Establishment, Investment, and Other Strengthening Industry-Academia- Over 10 Years
Slide 34: Initiatives for Regional Revitalization (3)
Initiatives for Regional Revitalization (3) Research and Studies Aimed at Solving Okinawa’s Challenges, and Public-Private Partnership Consulting: Activities of the Group company, Ryugin Research Institute Ltd. Research, proposals and ripple effects on Examples of articles in the mass media, includi
Slide 35: Support regional decarbonization and improve ESG evaluations
Support regional decarbonization and improve ESG evaluations By promoting decarbonization initiatives, which also help protect the natural environment as a tourism resource, the Bank aims to achieve both sustainable growth for the entire region and environmental value. ■ Cutting-Edge Initiatives Dri
Slide 36: Capital management
Capital management The Bank operates with a target equity ratio of approximately 10%. Ensuring financial soundness while striking a balance between “shareholder returns” and “investments in growth.” (%) 12.00 ■ Capital Utilization 11.00 1. Accumulation of risk assets • Loans: Proactive funding to su
Slide 37: Impact of Rising Interest Rates on Performance
Impact of Rising Interest Rates on Performance The proportion of loans with variable interest rates is approximately 66%. More than half of fixed-rate loans are set to mature within one year. ■Yen Interest Rate Balance Sheet ■Impact of Policy Rate Hikes 資産部分 Assets 負債・純資産部分 Liabilities / Net Assets
Slide 38: Materials
7) Materials
Slide 39: Financial Summary
Financial Summary (100 million yen) Bank of the FY2025 (Ended Ryukyus, Ryukyu Lease RYUCOM OCS Ryugin DC Ryugin Hosho Mar. 2026) Limited [Consolidated] Year on Year on Year on Year on Year on Year on Year on Year Year Year Year Year Year Year Ordinary income 803 +111 553 +102 197 +10 37 +2 20 +0 20
Slide 40: Performance Digest
Performance Digest (million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Ordinary income 38,688 40,756 43,152 45,074 55,345 +10,271 Gross operating profit 31,092 29,010 30,185 32,560 38,418 +5,858 Net interest income 28,216 27,603 27,218 29,841 34,947 +5,106 Fees and commissio
Slide 41: Net Interest Income
Net Interest Income (Year-end balance / Million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Net interest income 28,216 27,603 27,218 29,841 34,947 +5,106 Net interest income 26,087 25,765 25,878 25,972 28,444 +2,472 from loans and deposits Loan interest 26,194 25,846 25,978 2
Slide 42: Deposits, etc.
Deposits, etc. (Year-end balance / 100 million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Deposits, etc. 26,095 27,410 28,505 27,958 29,155 +1,197 Individual 16,599 16,876 17,297 17,487 17,823 +335 Corporate 7,614 7,973 8,603 8,599 8,802 +202 Public funds, 1,880 2,560 2,604
Slide 43: Loans (1)
Loans (1) (Year-end balance / 100 million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Total loans 18,222 18,470 19,031 20,019 21,104 +1,084 Individual 9,451 9,516 9,719 9,863 10,061 +197 Corporate (excluding 7,009 7,048 7,189 7,304 7,683 +379 syndicated loans) Local governmen
Slide 44: Loans (2) (Status by Usage)
Loans (2) (Status by Usage) Mortgage loan Syndicated loans Balance Yield (100 million yen / %) 6,800 1.5 0.92 Balance Yield (100 million yen / %) 6,600 3,000 1.07 2 0.73 0.68 0.64 0.62 6,400 2,500 0.73 1 6,200 6,076 0.5 0.53 2,007 2,000 0.36 0.41 6,000 5,889 1,603 1 Breakdown of Loan Balances by Use
Slide 45: Securities
Securities (100 million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Balance of securities 3,671 4,821 6,972 6,925 7,140 +215 Government bonds 692 1,681 4,002 4,387 4,968 +580 Local government bonds 1,891 1,770 1,715 1,448 1,229 -219 Corporate bonds 147 173 122 93 25 -67 Forei
Slide 46: Fees and Commissions / Profit from Service Charges
Fees and Commissions / Profit from Service Charges (million yen) Year on Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year Fees and 3,633 4,017 4,683 4,557 5,029 +471 commissions Fees and commissions 8,225 8,959 10,298 10,790 11,910 +1,120 Fees and commissions 6,881 +648 Factors behind YoY chan
Slide 47: Cashless Business
Cashless Business (million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Profit from cashless-related 535 718 765 866 962 +96 service charges Acquiring (merchants) 248 394 410 480 559 +79 Issuing (card issue) 287 324 354 385 400 +15 Credit card transaction volume (100 million y
Slide 48: Individual and Corporate Consulting
Individual and Corporate Consulting (Million yen / Case) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Fees related to corporate 530 639 1,079 768 562 -206 consulting Business Succession / M&A 159 121 452 365 272 -92 Business Matching 107 71 122 147 124 -23 Structured finance 186 34
Slide 49: Expenses
Expenses (100 million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Expenses 245 240 256 259 279 +20 Labor costs 103 104 109 115 120 +5 Non-personnel expenses 123 118 125 125 134 +9 System-related 60 58 64 63 69 +5 Store-related 22 22 22 21 27 +6 New headquarters 5 6 5 3 8 +5 c
Slide 50: Net Credit Costs and Disclosed Bad Debt
Net Credit Costs and Disclosed Bad Debt [Net Credit Costs] (100 million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 Year on Year Net credit costs -7 - 19 -13 14 2 -11 General provision for doubtful -8 - 19 - 19 5 -3 -8 accounts* Individual provision for doubtful 1 0 2 8 4 -4 accounts Loan
Slide 51: Reference: Summary of Profit/Loss Trends
Reference: Summary of Profit/Loss Trends (Based on Profit from Customer Services) (million yen) Mar. 2022 Mar. 2023 Mar. 2024 Mar. 2025 Mar. 2026 (million yen) Year on Year Profit from Customer Services*1 5,097 5,691 4,884 4,578 5,546 +968 Net interest income from loans 23,433 23,027 22,872 22,759 2
Slide 52: Overview of Okinawa Prefecture's Economy
Overview of Okinawa Prefecture’s Economy
Slide 53: Tankan/Economic Overview of Okinawa Prefecture
Tankan/Economic Overview of Okinawa Prefecture The economy within the prefecture continues to expand. Business Conditions DI (Favorable/Unfavorable) Nationwide 41 Prospects Economic Overview of Okinawa Prefecture 40 35 34 Okinawa 33 24 18 ◼ According to the Tankan’s business conditions DI, the 15 20
Slide 54: Increase/Decrease in Population and Projected Future Households
Increase/Decrease in Population and Projected Future Households The total population in Okinawa Prefecture has remained nearly unchanged, but declined for the first time since 2022. However, the number of households is likely to continue increasing for now. Population Change Rate (Right Axis) (%) Pr
Slide 55: Number of Tourists, Hotel Occupancy Rates and Room Rates
Number of Tourists, Hotel Occupancy Rates and Room Rates The tourism-related sector is showing increasing expansion due to rising tourism demand. The number of inbound tourists in FY2025 reached a record high of approximately 10.93 million (up 9.9% YoY). Occupancy Rates and Room Rates for (No. of Pe
Slide 56: Development Status of Hotels and Other Facilities in Okinawa
Development Status of Hotels and Other Facilities in Okinawa Investment in Okinawa remains strong, and openings, including for luxury hotels, are expected to continue into the future. Opening date Location Hotel name No. of rooms Hotel Jul. 2026 Fuchaku, Onna village PGM Hotel Golf Resort Okinawa 20
Slide 57: Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies
Unemployment Rates, Job-openings-to-applicants Ratios, and Corporate Bankruptcies Regarding the employment situation, the job-openings-to-applicants ratio remains above 1. The number of corporate bankruptcies has been calm. Unemployment Rates and Job-openings-to- No. of Corporate Bankruptcies and To
Slide 58: Official Land Price and Construction Unit Price
Official Land Price and Construction Unit Price Official land prices increased 6.6% year-on-year on average for all land uses, representing an increase for the thirteenth straight year. The growth rate in residential areas ranked second nationwide, behind only Tokyo. Although construction unit price
Slide 59: Public Construction Contract Amounts and Backlog Amounts
Public Construction Contract Amounts and Backlog Amounts from Construction Orders Public construction contract amounts remain robust. Backlog amounts from construction orders remain at a high level. (million yen) Public Construction Contract Amounts The Variation Amount of Backlog Amounts 160,000 fr
Slide 60: 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 starts in FY2025 rebounded from the previous fiscal year and exceeded 10,000 units. Consumption trends remain firm in the retail sector. (Units) Numbers of New Housing Construction Projects Consumpt
Slide 61: About Bank of the Ryukyus
X) About Bank of the Ryukyus
Slide 62: Bank of the Ryukyus Overview
Bank of the Ryukyus Overview Company Profile Group Companies 1-11-1 Kumoji, Naha, Okinawa Prefecture Established May 1, 1948 May 10, 1972 Address 346 million yen (100% stock ownership by Bank of the Ryukyus) Established Leasing and installment-selling of information-related Capital devices/equipment
Slide 63: Bank of the Ryukyus History
Bank of the Ryukyus History Bank of the Ryukyus was originally established on May 1, 1948, as a special banking organization via the May 1948 Precursor organization established via the Military Government Ordinance No. 1 U.S. Military Government Ordinance. The U.S. government provided 51% of the cap
Slide 64: There is a future worth pursuing for Okinawa.
There is a future worth pursuing for Okinawa. 64
Slide 65: 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. Informat