Nanto Group Corporate Value Enhancement
Management and Action Plans
Overview of the Management Plan
In December 2019, the Nanto Bank Group announced its Management Plan, "Nanto Mission and Objectives for the Next 10 Years," which covers the planning period from April 2020 to March 2030.
The Mission centers on three primary objectives: "regional development," "cultivation of vitality-creating human resources," and "improvement of profitability," with the specific goals of increasing Nara prefecture's GDP by approximately 350 billion yen, cultivating 350 management personnel, and achieving non-consolidated ROA of 0.35% or greater, respectively.
Moving quickly, the Group achieved the interim goals set for the first five years of the Plan well ahead of schedule. It responded in December 2021 by setting new interim targets for fiscal 2024: "3 billion yen in consolidated business profit from customer services," "OHR below 70%," "ROE of 4.0% or greater," and "non-consolidated ROA of 0.25% or greater." It also added a call for "cultivation 1,000 employees with qualifications related to vitality creation."
Management Plan, "Nanto Mission and Objectives for the Next 10 Years"
Nanto Mission
Pursuit of regional development
Fostering of vitality-creating human resources
Profitability enhancement
Fiscal 2020
Revised interim targets (fiscal 2024)
Profit / loss on customer transactions | ||||||||
initial | ||||||||
(Consolidated) | 3 billion yen | |||||||
achievementof interimtargets | -Reset | |||||||
(Non-Consolidated) | 0.25% or higher | |||||||
OHR (Consolidated) | Under 70% | |||||||
ROE (Consolidated) | 4.0% or higher | |||||||
Early | ROA | |||||||
Employees with certification in fields | ||||||||
related to vitality creation | 1,000 | |||||||
90th Anniversary | ||||||||
(June 2024) | ||||||||
Fiscal 2024 | Fiscal 2025 | |||||||
Publication of new
mid-term
Management Plan
Establishment of new goals
Goals for achievement
(FY2029)
Nara prefecture GDP
Up approx.
3,500 billion yen
(10% increase from fiscal 2016)
Management
personnel cultivation
350
ROA (non-consolidated)
0.35% or above
Fiscal 2029
Current Management Plan (first 5 years)
Turnaround and stabilization of profit from
customer service operations
New Management Plan (last 5 years)
Updating of our objectives
Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 | Fiscal 2025 | Fiscal 2026 | Fiscal 2027 | Fiscal 2028 | Fiscal 2029 |
Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan |
Concept of the Action Plan
Fulfilling our mission in today's highly uncertain business environment will require us to clarify our goals and to implement the PDCA cycle at every stage.
We will formulate and announce an Action Plan for each new fiscal year as we work to achieve our interim targets and objectives for the next 10 years.
Goals to be | ||
Increased uncertainty due to various changes | achieved | |
in the business environment | in 10 years | |
Second | ||
Fluctuating | Lifestyle | 5-year |
interest rates | diversication | interim |
targets | ||
Action (=P')
Technological | Declining population, | Globalization and |
evolution | low birthrate and | borderless world |
aging population | ||
Do | Check | ||||||||
Plan | |||||||||
Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 | Fiscal 2025 | Fiscal 2026 | Fiscal 2027 | Fiscal 2028 | Fiscal 2029 |
Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan | Action Plan |
P | D | C Reasons for | AP | D C A Goals to be |
Annual Action Plan | Annual activities | deviations from the | New Annual | achieved |
Plan and actual results | Action Plan |
26 Nanto Report 2024, the integrated report of Nanto Bank
About Nanto Bank | Nanto Group Corporate | Practicing Sustainable | Local Market | Strengthening | Control of Net Assets | Governance | Consolidated Financial | ||
Value Enhancement | Management | Revitalization | Profitability | Statements | |||||
Organizational | Business | Strategies | Performance | ||||||
overview and external | model | and resources | |||||||
environment | allocation |
Changes in the Action Plan
Our Action Plan is formulated annually to reflect the current environment surrounding the Nanto Bank Group, as recently exemplified by the coronavirus pandemic and negative interest rates, as well as the external environment, including growing awareness of such long-term concerns as environmental issues and sustainability.
External environment
Paris Agreement - SDGs | Environmental issues - growing momentum toward a decarbonized society | |
Negative interest rates | Progress toward interest rate normalization | |
Coronavirus pandemic | Post-coronavirus | |
Progress of corporate DX and IT investments | Ongoing progress of digitalization |
Fiscal 2020
Deep strategy cultivation - Strategy sophistication
~Nanto Mission establishment~
Productivity improvement
Business succession
Asset formation
Channel strategy
~Cost and resources optimization~
Store network reorganization
Administrative reform IT optimization
Commercialization strategy
[Tackling local challenges]
Tourism
Business creation
Market operation strategy
[Market operations that complement core business earnings]
Human resources strategy
[Cultivation of unconventional human resources to realize the Plan]
Fiscal 2021
Comprehensive financial support during the coronavirus pandemic
Regional development initiatives and profitability
Productivity improvement
Asset formation
Support for commercialization
Reinforcement of the management base
Securing and developing human resources
Improving operational efficiency Enhancement of risk management and governance
Construction and management of a portfolio capable of earning a stable yield of 1% or greater
Fiscal 2022
Customer base expansion
Supporting customers' productivity improvement
Supporting customers' asset formation
Supporting customers' commercialization
Improving customer convenience
Strengthening of human resources development
Cultivation of unconventional human resources
Reinforcement of the management base
Strengthening market operations
Improving the Group's productivity
Enhancement of risk management and governance
Responding to climate change issues
Fiscal 2023
Value-added contribution to customers
Enhancement of customers' corporate value
Customer asset formation Improvement of convenience
Supporting sustainable growth of local communities
Business creation in local communities
Tackling climate change issues
Strengthening of "market investment"
Restructuring of market operation portfolio
Creation of human resources
Cultivation of unconventional human resources
Strengthening of management foundation
Enhancement of risk management and governance
Fiscal 2024 Action Plan
Based on the PBR logic tree, we have incorporated both ROE and PER into our Action Plan for fiscal 2024. The Plan defines specific actions to be taken under each of four themes selected to raise the corporate value of the Nanto Bank Group: "enhancing profitability," "controlling net assets," "revitalizing local markets," and "practicing sustainable management."
Supporting Customers' Efforts | p.46-53 |
to Increase Corporate Value | |
Supporting customers' | p.44-45 |
asset accumulation | |
Improving customer | |
convenience | p.56-63 |
Improving the Group's | |
Nanto Group Corporate Value Enhancement
Improvement
of ROE
Improvement
of PER
Strengthening | Strengthening | |
of RORA | profitability |
Financial | Control of net assets | |
leverage control | ||
Improvement | Local market | |
of the expected | ||
revitalization | ||
growth rate | ||
Reduction of | Practicing | |
sustainable | ||
business risk | ||
management | ||
productivity | |
Stabilization of market | p.54-55 |
sector earnings | |
Advanced Risk-Return | |
Management | |
Reduction of | p.64-65 |
Cross-shareholdings | |
Shareholder returns | |
p.38-43 | |
Regional issue resolution | |
p.28-31 | |
Cultivating "unconventional" | |
human resources | |
p.32-37 | |
Sustainability initiatives | |
Nanto Report 2024, the integrated report of Nanto Bank 27