Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Results for the Fiscal Year
Ended March 31, 2024
IR Presentation
Materials were prepared for the Bank's presentation of its results for the fiscal year ended
March 31, 2024 held on June 4, 2024.
June 4, 2024
Table of Contents
1. | Financial Summary | ・・・ | 2 |
2. | Projected Performance | ・・・ | 12 |
3. | The 77 Bank Group's | 17 | |
Value Enhancement | ・・・ | ||
4. | Business Strategy | ・・・ | 27 |
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024 | 1 |
01
Financial Summary
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024 | 2 |
Summary of Profits and Losses
Non-consolidated
Consolidated
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024 | 3 |
Net Interest Income
Interest on loans and bills discounted increased due to improvement in yields in addition to a growth in
loans and bills discounted outstanding
Interest and dividends on securities also increased, mainly interest on foreign currency-denominated
bonds
Net interest income | (Unit: JPY bn, %) |
(Reference) Change factors in Net interest income (Unit: JPY bn)
Factors in securities
+10.8 Yen-denominated:+4.2
Foreign currency-denominated: +6.6
Factors in loans | Yield | Net interest | |||||
+5.4 | income | ||||||
+11.6 | |||||||
Yen-denominated: +3.3 | 93.4 | ||||||
Foreign currency-denominated: +2.1 | Others | ||||||
Average | Yield | (1.4) | |||||
+3.3 | |||||||
Net interest balance | |||||||
income | +2.1 | Average | |||||
78.6 | balance | ||||||
(0.8) | |||||||
FY2022 | FY2023 |
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024
Average balances and yields of loans and bills
discounted | (Unit: JPY bn) | ||||
Yields of loans and bills discounted | 0.91% | ||||
0.88% | 0.83% | 0.82% | 0.86% | ||
Loans and bills discounted | |||||
(average balances) | 4,965.1 | 5,138.7 | 5,422.5 | 5,661.6 | |
4,747.5 | |||||
FY2019 FY2020 FY2021 FY2022 FY2023
Average balances and yields of securities | (Unit: JPY bn) | ||||
Yields of securities | 1.45% | ||||
1.02% | 1.01% | 0.96% | 1.06% | ||
Securities | |||||
(average balances) | 2,925.6 | 3,010.1 | 3,018.4 | 2,940.6 | |
2,789.3 |
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 |
* Excluding products and corporate investment funds | 4 |
Deposits
Retail deposits and corporate deposits increased in Miyagi Prefecture
Deposits (average balances) | |||||
(including certificates of deposits) | (Unit: JPY bn) | ||||
8,624.8 | 8,842.8 | 8,908.5 | |||
8,216.1 | (+2.5%) | (+0.7%) | |||
(+4.9%) | |||||
Total | 7,790.8 (+5.4%) |
(YoY change (%)) (+0.3%)
Deposits by region (average balances) (including
certificates of deposits) | (Unit: JPY bn) | ||||||
7,790.8 | 8,216.1 | 8,624.8 | 8,842.8 | 8,908.5 | |||
Total | (+4.9%) | (+2.5%) | (+0.7%) | ||||
(+5.4%) | |||||||
(YoY change (%)) (+0.3%) |
Miyagi | 7,265.2 | 7,686.0 | 8,074.6 | 8,284.8 | 8,354.0 +0.8% |
Prefecture |
5,869.3 | 5,974.8 +1.8% | Outside of | |||||||||
5,643.1 | Miyagi | 525.6 | 530.1 | 550.2 | 558.0 | 554.5 | (0.6%) | ||||
Retail | 5,347.2 | Prefecture | FY2019 | FY2020 | FY2021 | FY2022 | YoY change | ||||
FY2023 | (%) | ||||||||||
deposits | 5,054.4 |
Structure of yen-denominated deposits (balances as | ||||||||||||||||
of end-March 2024) | ||||||||||||||||
Less than | ||||||||||||||||
Retail | JPY 10 mn | |||||||||||||||
42% | ||||||||||||||||
deposits | ||||||||||||||||
Corporate | 2,069.8 | 2,179.5 | 2,193.9 | 2,221.6 | 69% | JPY 10 mn or more | ||||||||||
1,850.5 | +1.2% | |||||||||||||||
deposits | ||||||||||||||||
Less than | ||||||||||||||||
JPY 100 mn | ||||||||||||||||
Public | Corporate | 35% | ||||||||||||||
Public | 885.9 | deposits, etc. | deposits | JPY 100 mn | ||||||||||||
deposits, etc. | 799.1 | 802.2 | 779.6 | 712.1 | (8.6%) | 6% | 25% | or more | ||||||||
YoY change | 23% | |||||||||||||||
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | ||||||||||||
Percentages by depositor type | Percentages by amount | |||||||||||||||
(%) | 5 | |||||||||||||||
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024 |
Loans and bills discounted
Capture steadily needs for loans and bills discounted in Miyagi Prefecture and Tohoku region, etc.
Yields of loans and bills discounted improved due to higher interest rates in the market
Loans and bills discounted | Corporate loans (average balances) | |||||
(average balances) | (Unit: JPY bn) | (yen-denominated) | (Unit: JPY bn) |
5,422.5 | 5,661.6 | ||||
(+4.4%) | |||||
4,965.1 | 5,138.7 | (+5.5%) | |||
Total | |||||
4,747.5 | (+4.5%) | (+3.4%) | |||
(YoY change | |||||
(%)) | (+1.8%) |
3,434.7 | 3,690.1 | |||
Corporate | 3,068.5 | 3,188.8 | ||
(Yen- | 2,881.6 | |||
denominated) |
Corporate | 63.5 | 80.3 | 77.7 | ||
(Foreign | 63.4 | 58.1 | |||
currency- | |||||
denominated) | |||||
Retail loans | 1,154.9 | 1,193.4 | 1,231.4 | 1,277.0 | 1,317.3 |
Loans for local | 647.6 | 645.1 | 655.0 | 630.5 | 576.5 |
governments | |||||
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 |
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024
3,434.7 | 3,690.1 | ||||||||||||||||||||
3,068.5 | 3,188.8 | (+7.4%) | |||||||||||||||||||
2,881.6 | (+7.7%) | ||||||||||||||||||||
Total | |||||||||||||||||||||
(+6.4%) | (+3.9%) | ||||||||||||||||||||
(YoY change (%)) | (+2.1%) | ||||||||||||||||||||
1,773.5 | 1,898.2 | 2,036.5 | +7.2% | ||||||||||||||||||
Miyagi | 1,717.3 | ||||||||||||||||||||
1,646.1 | |||||||||||||||||||||
Prefecture | |||||||||||||||||||||
Tohoku region, etc. | 340.4 | 382.6 | +12.3% | ||||||||||||||||||
(excluding Miyagi | 263.2 | 284.5 | 305.2 | ||||||||||||||||||
Prefecture) | +4.0% | ||||||||||||||||||||
990.5 | 1,030.9 | ||||||||||||||||||||
Tokyo/Nagoya/ | 851.7 | 929.2 | 943.8 | ||||||||||||||||||
+7.4% | Osaka | +16.7% | |||||||||||||||||||
Structured | 120.6 | 137.5 | 166.3 | 205.6 | 240.1 | ||||||||||||||||
finance | YoY change | ||||||||||||||||||||
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | |||||||||||||||||
(%) | |||||||||||||||||||||
Yields of loans and bills discounted | |||||||||||||||||||||
6.62% | |||||||||||||||||||||
Foreign | |||||||||||||||||||||
currency- | 3.84% | ||||||||||||||||||||
(3.1%) | denominated | ||||||||||||||||||||
3.04% | |||||||||||||||||||||
Overall | 1.38% | 1.10% | |||||||||||||||||||
+3.1% | 0.91% | ||||||||||||||||||||
0.88% | 0.86% | ||||||||||||||||||||
0.83% | 0.82% | ||||||||||||||||||||
Yen- | |||||||||||||||||||||
denominated 0.85% | |||||||||||||||||||||
0.83% | 0.83% | ||||||||||||||||||||
(8.5%) | 0.81% | 0.81% | |||||||||||||||||||
YoY change | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | ||||||||||||||||
(%) | |||||||||||||||||||||
6 |
Securities (1)
Implemented switching of yen-denominated bonds with a view to improving the portfolio
Total yield on securities increased due to an increase in interest and dividends on investment securities
Balance of investment securities | Total gains (losses) from securities | |||||||||||
(on an amortized cost basis) | (Unit: JPY bn) | (Unit: JPY bn, %) | ||||||||||
YoY | ||||||||||||
change | ||||||||||||
2,973.4 | 3,013.4 | 2,975.0 | (1.9%) | |||||||||
2,918.0 | ||||||||||||
2,835.3 | ||||||||||||
286.0 | ||||||||||||
272.9 | 313.2 | |||||||||||
402.6 | 13.8% | |||||||||||
National gov. | 449.7 | |||||||||||
bonds | ||||||||||||
905.2 | 967.1 | 923.3 | 27.4% | |||||||||
800.7 | ||||||||||||
Local gov. | 739.6 | |||||||||||
bonds |
1,023.4 943.8 841.8 726.8 24.9%
Corporate 957.0 bonds
637.0 | 689.6 | 23.6% | |||||
Investment | 549.2 | 610.5 | |||||
504.8 | |||||||
trusts, etc. | |||||||
Foreign | 150.1 | 130.4 | 183.5 | 222.7 | 7.7% | ||
bonds | 118.7 | ||||||
75.7 | 2.6% | ||||||
Equity | 65.5 | 72.6 | 75.6 | 76.2 | |||
securities | End-Mar. 2020 End-Mar. 2021 End-Mar. 2022 End-Mar. 2023 End-Mar. 2024 | Composition | |||||
ratio |
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024 | 7 |
Securities (2)
Losses from evaluation of yen-denominated securities increased as a result of higher interest rates, however, gains from evaluation of stocks and investment trusts increased due to higher stock prices Executed sales of yen-denominated bonds with the aim of controlling interest rate risk, etc.
Gains (losses) from evaluation of securities | Yen-denominated bonds balance by remaining | |||||
(Unit: JPY bn) | period/modified duration | (Unit: JPY bn) | ||||
End-Mar. 2022 | |||||
Debt securities | (11.7) | ||||
National gov. bonds | (5.8) | ||||
Local gov. bonds | (2.6) | ||||
Corporate bonds | (3.3) | ||||
Others | 54.1 | ||||
Investment trusts, etc. | 54.5 | ||||
Foreign bonds | (0.4) | ||||
Equity securities | 76.0 | ||||
Investment securities total | 118.4 | ||||
Money held in trusts | 5.3 | ||||
Total | 123.7 |
End-Mar. 2023 | End-Mar. 2024 |
(27.5) | (34.9) |
(12.9) | (16.8) |
(8.0) | (9.6) |
(6.6) | (8.5) |
30.0 | 60.0 |
31.7 | 61.3 |
(1.7) | (1.3) |
78.7 | 143.3 |
81.2 | 168.4 |
3.2 | 7.8 |
84.4 | 176.2 |
Modified | 5.74 | 5.59 | 5.42 | |
duration | ||||
Total yen- | ||||
denominated | 2,202.1 | |||
bonds | 2,082.6 | 1,934.3 | ||
Over 10 years | 193.3 | |||
270.4 | ||||
284.3 | ||||
Over 5 years | ||||
893.6 | ||||
but no more | 779.8 | 641.0 | ||
than 10 years | ||||
Over 1 year but | 881.6 | 802.1 | 805.5 | |
no more than | ||||
5 years | ||||
No more than | 233.6 | 230.3 | 203.5 | |
1 year | End-Mar. 2023 | End-Mar. 2024 | ||
End-Mar. 2022 | ||||
Foreign currency-denominated foreign bonds | ||||
balance/modified duration | (Unit: JPY bn) | |||
Modified | 0.73 | 0.68 | ||
0.31 | ||||
duration | 218.4 | |||
Total foreign | 179.2 | |||
currency- | ||||
denominated | 125.1 |
(Reference) Changes in Nikkei Average, etc. | (Unit: JPY, %) | |||||||
Nikkei Average | 27,821 | 28,041 | 40,369 | |||||
10-year JGBs | 0.21 | 0.32 | 0.72 | |||||
10-year US treasury bonds | 2.34 | 3.47 | 4.20 | |||||
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024
foreign bonds | ||||||
3.5 | 7.8 | 8.9 | ||||
Fixed rate | ||||||
bonds | ||||||
End-Mar. 2022 | End-Mar. 2023 | End-Mar. 2024 | 8 | |||
Fees and commissions
Fees and commissions from corporate clients increased due to growth in credit-related fees
and commissions and those for business matchings
Fees and commissions | (Unit: JPY bn) | Fees and commissions from corporate clients | (Unit: JPY bn) | ||||||||||
3.8 | |||||||||||||
2.7 | 2.9 | 1.7 | |||||||||||
Credit-related | 2.0 | 1.4 | 1.2 | ||||||||||
1.5 | |||||||||||||
fees and | |||||||||||||
commissions | 1.1 | 1.3 | |||||||||||
Business | 0.8 | 0.9 | |||||||||||
0.6 | |||||||||||||
matchings | |||||||||||||
0.4 | |||||||||||||
M&A | 0.3 | 0.3 | 0.5 | 0.4 | |||||||||
0.4 | |||||||||||||
Others | 0.3 | 0.4 | 0.3 | 0.4 | |||||||||
0.1 | 0.1 | ||||||||||||
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | |||||||||
Sales commissions of assets in custody | (Unit: JPY bn) | ||||||||||||
2.7 | 2.5 | ||||||||||||
2.3 | |||||||||||||
1.5 | 1.6 | 2.2 | 1.8 | ||||||||||
1.9 | |||||||||||||
Sales | |||||||||||||
1.0 | 1.2 | ||||||||||||
commission | |||||||||||||
Trust fees, | 0.5 | 0.4 | 0.4 | 0.5 | 0.7 | ||||||||
etc. | |||||||||||||
The 77 Bank, Ltd. | Fiscal Year Ended March 31, 2024 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 9 |