Hachijuni Nagano Bank, Ltd. TSE:8359
Hachijuni Bank : Financial Results for FY2023 (May 30,2024)
Source: MarketScreener
Prime Market of the Tokyo Stock Exchange：8359
The 53rd Information Meeting
May 30, 2024
＜Inquiries＞
Planning & Coordination Dept. Investor Relations
TEL：026-224-5512
E-mail： [email protected]
・This document has been prepared for information purpose only. It should not be construed as an offer or solicitation to buy or sell any securities.
・This document includes statements concerning future business results. These statements do not guarantee future business results but contain risks and uncertainties. Please note that future business results may differ from for reasons such as changes in the business environment.
・Information contained herein may be changed or revised without prior notice.
Overview of Hachijuni Bank
Company name | The Hachijuni Bank, Ltd. | |
Head office | Nagano City, Nagano Prefecture | |
Date of establishment | August 1st, 1931 | |
Domestic: 151 | ||
（in Nagano:131, outside Nagano:20） | ||
Branch | Overseas: | |
1 Branch（Singapore） | ||
Network | ||
2 Representative Offices | ||
(Shanghai, Bangkok） | ||
※Hong Kong Branch closed on Mar 31, 2024. | ||
No. of employees | 3,289（＋248 from 3/2023) | |
Capital stock | ¥52.2bn | |
Issued shares | 513,767 thousand shares | |
※22,664 thousand shares increased due to the issuance of new | ||
shares in connection with a share exchange. | ||
Total assets | ¥13,711.3bn (+6.39% from 3/2023) | |
Net assets | ¥1,011.7bn（+21.09%） | |
Deposits | ¥8,467.6bn（+3.43%） | |
Loans | ¥6,203.4bn（+0.76%） | |
Total capital ratio | Consolidated: 20.74％（+2.38％ from 3/2023） | |
（Basel Ⅲ） | Non-consolidated: 21.00％（+4.45％） | |
S&P | Global Ratings： A- | |
Ratings | R&I | ： A+ |
JCR | ： AA |
As of Mar 31, 2024
2
Topics
- We were the first domestic bank to receive the highest "A" rating in CDP's 2023 survey.
- Hachijuni Nagano Bank will be born on January 1, 2026.
- It is assumed that the amendment to the Articles of Incorporation will be approved at the General Meeting of Shareholders.
〈For reference〉 Overview of Nagano Bank
Company name | The Nagano Bank, Ltd. |
Head office | Matsumoto City, Nagano Prefecture |
Branch network | Domestic: 53 |
（in Nagano: 52, outside Nagano: 1） | |
No. of employees | 612 |
Total assets | ¥1,023.2bn |
Net assets | ¥23.4bn |
Deposits | ¥989.7bn |
Loans | ¥636.1bn |
As of Mar 31, 2024 |
Index | 3 |
Outline of FY2023 Financial Results | 4 | |
Status of Medium-Term Management Initiatives | 24 | |
Business Merger | 33 | |
Value Creation Process | 37 | |
Efforts to Improve PBR and ROE | 41 |
4
Outline of FY2023 Financial Results
Outline of FY2023 Financial Results (Consolidated) | ||
5 | ||
◆Consolidated （¥100mn） | ⚫ Profit on interest | |
3/2023 | 3/2024 | Change | |||
Consolidated gross business profit | 915 | 1,004 | 88 | ||
Profit on interest | 727 | 877 | 150 | ||
Profit on fees and commissions | 172 | 184 | 12 | ||
Trading profit | 9 | 2 | -6 | ||
Profit from other business transactions | 6 | -60 | -67 | ||
General & administrative expenses | 566 | 662 | 96 | ||
Credit related expenses | 42 | 16 | -25 | ||
Gains/losses related to stocks | 87 | 109 | 22 | ||
Gains/losses on money held in trust | -3 | -9 | -6 | ||
Ordinary profit | 348 | 352 | 3 | ||
Extraordinary gains/losses | -1 | 156 | 157 | ||
Gain on negative goodwill | ー | 173 | 173 | ||
Profit attributable to owners of parent | 241 | 370 | 129 | ||
¥15.0bn increase from FY2022 due to increased profit at Hachijuni Bank and the new consolidation of Nagano Bank group.
- Ordinary profit
¥0.3bn increase from FY2022 due to increased profit at Hachijuni Bank despite an extraordinary factor of losses on securities of Nagano Bank.
- Profit attributable to owners of parent
¥12.9bn increase from FY2022 due mainly to gain on negative goodwill of ¥17.3bn by business integration.
※Due to the new consolidation of Nagano Bank, Nagagin Lease and Nagano Card, only the nine-month financial results from Jul 2023 to Mar 2024 are reflected in the consolidated figures.
(Please refer to Page 7 and 21 for the financial results of these three companies.)
Outline of FY2023 Financial Results (Hachijuni Bank Non-consolidated) | 6 |
◆Hachijuni Bank （¥100mn）
Gross business profit（A）
Profit on interest
Profit on fees & commissions
Profit from other business transactions
Gains/losses related to bonds（B）
G&A expenses（C）
Actual net business profit（A-C)
Core net business profit（A-B-C)
Excl. G/L on cancellation of investment trusts
Transfer to general reserve for possible loan losses（D）
Net business profit（A-C-D)
P/L | Gains/losses related to stocks（E） |
Temporary | |
Gains/losses on money held in trust（F） | |
Disposal of NPLs |
Ordinary profit
Extraordinary gains/losses
Gain on extinguishment of tie-in shares
Gains/losses on disposal of non-current assets
Inpairment losses
Profit
Profit/losses related to securities（B+E+F）
Credit related expenses
3/2023 3/2024 Change
805 | 875 | 70 |
727 | 809 | 81 |
106 | 103 | -2 |
-30 | -38 | -8 |
-46 | -62 | -15 |
528 | 542 | 13 |
276 | 333 | 56 |
323 | 395 | 72 |
369 | 408 | 39 |
9 | 2 | -7 |
266 | 331 | 64 |
86 | 100 | 14 |
-3 | -9 | -6 |
32 | 11 | -20 |
302 | 362 | 60 |
0 | 6 | 6 |
― | 15 | 15 |
15 | -1 | -16 |
14 | 7 | -7 |
215 | 271 | 56 |
36 | 28 | -8 |
41 | 13 | -28 |
- Core net business profit
¥7.2bn increase from FY2022 due to an increase in profit on interest of domestic despite an increase in G&A expenses.
- Ordinary profit
¥6.0bn increase from FY2022 due to an increase in core net business profit and a decrease of credit-related expenses despite a decrease in P/L related to securities.
- Extraordinary G/L
¥0.6bn increase from FY2022 due to gain on extinguishment of tie-in shares of ¥1.5bn by merged of Hachijuni System Development Co., Ltd.
- Profit
¥5.6bn increase from FY2022 to ¥27.1bn.
Outline of FY2023 Financial Results (Nagano Bank Non-consolidated) | 7 |
◆Nagano Bank （¥100mn）
Gross business profit（A）
Profit on interest
Profit on fees & commissions
Profit from other business transactions
G/L related to bonds（B）
G&A expenses（C）
Actual net business profit（A-C)
Core net business profit（A-B-C)
Excl. gains/losses on cancellation of investment trusts
Transfer to general reserve for possible loan losses（D）
Net business profit（A-C-D)
P/L | G/L related to stocks（E） |
Tmporary | |
G/L on money held in trust（F） | |
Disposal of NPL |
Ordinary profit
Extraordinary gains/losses
Profit
P/L related to securities（B+E+F）
Credit related expenses
Recorded in consolidated financial statements ↓
4~6/ | 7/2023～ | 4/2023～ Change from | ||
2023 | 3/2024 | 3/2024 | 3/2023 | |
21 | -80 | -59 | -168 | |
26 | 63 | 89 | -19 | |
0 | 2 | 3 | -6 | |
-4 | -146 | -151 | -142 | |
-5 | -117 | -123 | -116 | |
24 | 71 | 96 | -0 | |
-3 | -152 | -155 | -168 | |
2 | -34 | -31 | -51 | |
2 | -34 | -31 | -49 | |
5 | -1 | 4 | 6 | |
-9 | -150 | -159 | -174 | |
4 | 27 | 32 | 29 | |
0 | 0 | 0 | 0 | |
34 | -4 | 30 | 25 | |
-39 | -119 | -158 | -173 | |
-58 | 21 | -37 | -37 | |
-83 | -133 | -216 | -226 | |
-1 | -89 | -90 | -87 | |
40 | -5 | 35 | 31 | |
- Gross business profit
¥16.8bn decrease from FY2022
Profit on interest: -¥1.9bn
G/L related to bonds: -¥11.6bn
- Ordinary profit
¥17.3bn decrease from FY2022
Credit related expenses: +¥3.1bn
- Profit
¥22.6bn decrease from FY2022
Extraordinary G/L: -¥3.7bn
- Impairment losses: -¥4.4bn
- Allowance for estimated losses from future system contract cancellations: -¥2.3bn
- Gain on sales of subsidiaries' stock: +¥3.1bn
Profit on Interest | |
8 | |
- Domestic: ¥7.8bn increase from FY2022 due to an increase in the balance of securities and an improvement of yields on interest and dividends on securities.
- International: ¥0.3bn increase from FY2022 due to higher yields on loans and securities and increases in the balance of loans and securities despite an increase in foreign currency funding costs.
- Profit on Interest（¥100mn）
3/2023 | 3/2024 | Change | |||
Domestic sector | 633 | 712 | 78 | ||
Interest income | 650 | 740 | 90 | ||
Interset on loans | 395 | 405 | 9 | ||
Interest and dividends on securities | 220 | 305 | 85 | ||
Funding costs | -17 | -28 | -11 | ||
International sector | 94 | 97 | 3 | ||
Interest income | 257 | 437 | 179 | ||
Interest on loans | 101 | 186 | 84 | ||
Interest and dividends on securities | 145 | 236 | 90 | ||
Funding costs | -163 | -339 | -176 | ||
◆ Yield（%）
3/2023 | 3/2024 | Change | ||||
Domestic sector | ||||||
Yield | 0.57 | 0.62 | 0.05 | |||
Yield on loans | 0.68 | 0.68 | 0.00 | |||
Yield on securities | 1.22 | 1.46 | 0.24 | |||
Funding yield | 0.01 | 0.02 | 0.01 | |||
International sector | ||||||
Yield | 3.30 | 4.99 | 1.69 | |||
Yield on loans | 3.26 | 5.68 | 2.41 | |||
Yield on securities | 3.37 | 4.61 | 1.24 | |||
Funding yield | 2.10 | 3.96 | 1.86 | |||
Loans/Deposits | 9 |
- The balance of loans increased due to increases in corporate and consumer loans despite decreases in loans to government and local public entities.
- The balance of deposits increased steadily.
◆Average Balance of Loans
（¥100mn） | <2 banks combined> | ||||||||||
(outstanding balance) | |||||||||||
68,396 | |||||||||||
60,921 | 62,545 | ||||||||||
58,112 | 6,361 | ||||||||||
（ | |||||||||||
Nagano） | |||||||||||
Outside | 29,440 | 32,007 | 33,650 | ||||||||
Nagano | |||||||||||
62,034 | |||||||||||
（ | Hachijuni） | ||||||||||
Inside | 28,671 | 28,914 | 28,895 | ||||||||
Nagano | |||||||||||
3/2022 | 3/2023 | 3/2024/ | 3/2024 | ||||||||
Inc/Dec ratio | 3/2022 | 3/2023 | 3/2024 | ||||||||
（YoY: ％） | |||||||||||
All offices | 3.47 | 4.83 | 2.66 | ||||||||
Outside Nagano | 4.79 | 8.71 | 5.13 | ||||||||
Inside Nagano | 2.14 | 0.84 | -0.06 | ||||||||
◆Average Balance of Deposits
（¥100mn） | <2 banks combined> | |||||
(outstanding balance) | ||||||
94,574 | ||||||
82,758 | ||||||
77,923 | 80,963 | 9,897 | ||||
（Nagano） | ||||||
Outside | 6,160 | 6,184 | 5,948 | |||
Nagano |
Inside | 74,779 | 76,809 | 84,676 | |
71,762 | （Hachijuni） | |||
Nagano |
3/2022 | 3/2023 | 3/2024 | 3/2024 |
Inc/Dec ratio | 3/2022 | 3/2023 | 3/2024 |
（YoY: ％） | |||
All offices | 6.14 | 3.90 | 2.21 |
Outside Nagano | 7.85 | 0.37 | -3.80 |
Inside Nagano | 6.00 | 4.20 | 2.71 |
Business Loans | 10 |
- Business loans increased due to increases in corporate capital investment which had been postponed during pandemic and in working capital demand. On the other hand, the number of borrowers and the balance of SME loans decreased due to the sequential arrival of deferment deadlines for zero-zero loans (interest-free and unsecured loans).
- Business Loans (outstanding balance)
（¥100mn） | <2 banks combined> | ||||
39,851 | |||||
35,921 | 36,659 | 3,191 | |||
（ | Nagano | ） | |||
33,725 | |||||
Outside | 21,189 | 23,350 | 23,926 |
Nagano |
36,659
（Hachijuni）
Inside | 12,536 | 12,570 | 12,733 | ||
Nagano | |||||
3/2022 3/2023 3/2024 3/2024
- No. of Customers
28,916 | 29,078 | 28,420 | |||
Outside | 3,646 | 3,762 | |||
3,767 | |||||
Nagano | |||||
NaganoInside | 25,270 | 25,316 | 24,653 | ||
3/2022 3/2023 3/2024
- Business Loans for SMEs※
（outstanding balance)
The ratio of SME loans to total business loans | （¥100mn） | ||||||||||||
25,000 | 48.4% | 48.5% | 46.9% | ||||||||||
24,500 | |||||||||||||
24,000 | |||||||||||||
23,500 | 49.0% | ||||||||||||
23,000 | |||||||||||||
22,500 | |||||||||||||
22,000 | |||||||||||||
21,500 | |||||||||||||
21,000 | |||||||||||||
20,500 | 47.0% | ||||||||||||
20,000 | |||||||||||||
19,500 | |||||||||||||
19,000 | |||||||||||||
18,500 | |||||||||||||
18,000 | |||||||||||||
17,500 | 45.0% | ||||||||||||
17,000 | |||||||||||||
16,500 | |||||||||||||
16,000 | |||||||||||||
15,500 | |||||||||||||
15,000 | 43.0% | ||||||||||||
14,500 | |||||||||||||
14,000 | |||||||||||||
13,500 | |||||||||||||
13,000 | |||||||||||||
12,500 | |||||||||||||
12,000 | 41.0% | ||||||||||||
11,500 | |||||||||||||
11,000 | |||||||||||||
10,500 | |||||||||||||
10,000 | 17,447 | 17,203 | |||||||||||
8,000 | |||||||||||||
9,500 | 16,332 | ||||||||||||
7,500 | 39.0% | ||||||||||||
9,000 | |||||||||||||
8,500 | |||||||||||||
7,000 | |||||||||||||
6,500 | |||||||||||||
6,000 | 37.0% | ||||||||||||
5,500 | |||||||||||||
5,000 | |||||||||||||
4,500 | |||||||||||||
4,000 | |||||||||||||
3,500 | |||||||||||||
3,000 | 35.0% | ||||||||||||
2,500 | |||||||||||||
2,000 | |||||||||||||
1,500 | |||||||||||||
1,000 | |||||||||||||
500 | |||||||||||||
0 | 33.0% |
3/2022 3/2023 3/2024
※ SMEs (excl. local public entities)＋self-employed company owners