Post on 12-Mar-2021
Bank of the Ryukyus Management Briefing
for FY2016
“Kakurenbo” (Hide and Seek), by Makoto Ariyama
Winner of the 25th (fiscal 2016) Bingata Design Contest presented by the Bank of the Ryukyus
-60
-40
-20
0
20
40
60
Mar.'09 Mar.'10 Mar.'11 Mar.'12 Mar.'13 Mar.'14 Mar.'15 Mar.'16 Mar.'17
Bank of Japan Tankan
Japan Okinawa
■Overview of Okinawa Prefecture
(出所)沖縄県
Sources: Okinawa Prefecture, Cabinet Office, Ministry of Internal Affairs and Communications
1.07% (highest in Japan: 2007-2020 anticipated rate of
real economic growth (Japan Center for Economic
Research))
1
Favorable economic conditions in the prefecture are expected to continue.
+37
+10
Anticipated rate
of economic growth
Population growth rate
China: 1.3 billion people
Okinawa
Within a four-hour
traveling distance by air
ASEAN: 600 million people
Center of a massive market with
a population of about two billion people
3.0% (highest in Japan: 2015 National Census (compared
with the 2010 National Census))
Source: Okinawa Prefecture
Japan: 130 million people
■Tourism (Visitors to Okinawa)
5,135 5,459
5,862 6,164 6,261
6,531
280 376
550
893 1,501
2,082
5,415 5,835
6,413
7,058
7,763
8,613
373.4 390.5
433.9
516.9
591.3
652.5
0
100
200
300
400
500
600
0
2,000
4,000
6,000
8,000
10,000
2011 2012 2013 2014 2015 2016
(Billions of yen)(Thousands of people)
Number of Visitors and Tourism Revenue
Visitors from overseas (Left scale)
Visitors from other parts of Japan (Left scale)
Revenues from tourism (Right scale)
Source: Okinawa Prefecture 2
Record-high visitor arrivals! Number of foreign tourists exceeded two million in 2016!
53 67 5680
115
193213
4952 65
73
84
95
175
55 1
3
13
86
104
112125 130
162
219
387
502
0
100
200
300
400
500
2011 2012 2013 2014 2015 2016 2017
Changes in Number of Cruise Ships Visiting Ports in Okinawa Prefecture
Naha
Ishigaki
Taira
Nakagusukuå
Others
Actual Expected(Times)
3
■Financial Industry Trends
Financial industry conditions remain severe in stark contrast to the positive prefectural economy
BOJ adopts negative
interest rate policy
Intensifying competition
among financial institutions
Decrease in lending
interest margin
Decrease in marketable
securities–related profits
82 listed regional banks and financial groups
11% decrease in FY 2016
consolidated net income (YoY)
17% decrease in FY 2017
consolidated net income (forecast)*Expected to fall below ¥1 trillion for first time in five years
60.0
80.0
100.0
120.0
140.0
160.0
180.0
H25.4.1 H26.4.1 H27.4.1 H28.4.1 H29.4.1
Stock Price Comparison of Bank of Ryukyus, Nikkei Stock Average and Banking Sector
日経平均株価 当行株価 銀行セクター*Stock prices on April 1, 2013 indexed at 100
— Nikkei Stock Average — Bank of the Ryukyus — Banking Sector
April 1, 2017April 1, 2016April 1, 2015April 1, 2014April 1, 2013
FY2016 FY2015
Year-on-year change
Ordinary revenue 41.1 +0.9 40.2
Business gross profit (a) 30.0 ▲1.7 31.7
Expenses (b) 23.6 +1.2 22.4
Real net business profit (c=a-b) 6.3 ▲3.0 9.3
Net credit costs (d) 0.8 ▲0.5 1.3
Other extraordinary gain/loss (e) 1.8 +1.5 0.3
Ordinary profit (f=c-d+e) 7.4 ▲0.9 8.3
Net income 5.0 ▲0.0 5.0
* Increase and decrease is presented on a financial statement basis.
■Financial Summary (Non-Consolidated)
(Billions of yen)
4
Net income for the fiscal year remained at roughly the same level as last year
FY2016 FY2015
Year-on-year change
Ordinary revenue 60.7 +0.8 59.9
Ordinary expenses 51.0 +1.2 49.8
Ordinary profit 9.7 ▲0.3 10.0
Extraordinary gains or losses 0.0 ▲4.0 4.0
Gain on negative goodwill 0.0 ▲4.3 4.3
Net income for the period attributable
to the owners of parent company
(excluding gain from negative goodwill)
6.4
(6.4)
▲3.9
+0.5
10.3
(5.9)
5* Increase and decrease is presented on a financial statement basis.
Revenue and profit increased if special factors, namely, extraordinary gains from turning
OCS into subsidiary in the previous fiscal year, are excluded
■Financial Summary (Consolidated)
(Billions of yen)
2.4
3.4
4.2
5.0 5.0
0
1
2
3
4
5
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
5,052 5,012
590
504
149
463 490
1,256
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
▲¥40million
6
■Factors Behind the Change in Net Income
Net income for the fiscal year remained at roughly the same level as last year despite a decrease
in net interest income on loans and deposits and an increase in business expenses
(Billions of yen) (Millions of yen)
Changes in Net Income Factors Behind the Change in FY2016 Net Income
March 2016 March 2017
Decrease in
net cred
it costs
Oth
ers
Increase in
expen
ses
Increase in
interest an
d
divid
end
inco
me o
n secu
rities
Decrease in
net in
terest inco
me
on
loan
s and
dep
osits
Loan interest decreased despite steady increases in lending to both individuals and businesses
775999
1,6181,320 1,321
▲ 1,358
▲ 1,884
▲ 1,452
▲ 1,042
▲ 2,303
▲ 583▲ 885
166365
▲ 982
▲ 2,500
▲ 1,500
▲ 500
500
1,500
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Earnings yield factors
Balance factors
Increase/decrease in loan interest compared with same period in previous year
2.29%2.14%
2.02% 1.94%1.78%
1.59%1.47% 1.38% 1.30% 1.21%
0.50%
1.00%
1.50%
2.00%
2.50%
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Changes in Loan Investment YieldsLoan investment yields
Loan investment yields (nationwide regional banks)
“Reference”End Sep.’16
7(Source: Regional Banks Association of Japan)
611.1 649.1 694.5 741.5 801.3
448.2 477.5
514.7 547.6
563.2 109.7
120.0
119.7
122.5
116.2
72.4
83.3
70.3
53.8 49.2
0
200
400
600
800
1,000
1,200
1,400
1,600
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Changes in Loans
Syndicated loans
Local public authorities and other (excluding syndicated loans)
Corporations (excluding syndicated loans)
Individuals
1,241.6
1,399.21,330.0
1,465.51,530.0
■Changes in Loans
(Billions of yen)
(Millions of yen)
Changes in Loans Interest Increase / Decrease
146.6 160.1
184.8 188.1 189.1
222.9 227.3 224.2 225.9 209.6
100
150
200
250
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Equipment funds Working capital
Interest on loans decreased overall, with the exception of consumer loans
7.7 7.2 7.2 7.1 6.8
6.3 6.4 6.6 7.1 7.1
6.5 6.2 6.0 5.7
4.9
1.7 2.0 2.2 2.4
2.5
3.1 2.8 2.6 2.3
2.1
25.3 24.6 24.6 24.6
23.4
0
5
10
15
20
25
30
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Others
Consumer loans (excluding mortgage loans)
Mortgage loans
Residential leasing and real estate
General business
8
166 172
183
192
197 169 172
178
191
211
150
170
190
210
230
2012 2013 2014 2015 2016
Japan Okinawa
(Thousands of yen / ㎡)
(Source) Prepared by Ryugin Research Institute based on the Japan Construction
Starts Report of the Ministry of Land, Infrastructure, Transport and Tourism.
* For mortgage and consumer loans, the interest amount excludes "creditor group
insurance premiums" and "loan guarantee fees" in service costs.
(Billions of yen) (Billions of yen)
■Changes in Interest on Loans
Changes in Interest on Loans by Major Category Changes in General Business Loan Balance by Objectives of Fund(excluding Syndicated Loans, Residential Leasing and Real Estate)
Changes in Unit Construction Cost / Price
9
Pinpoint latent customer needs and provide high value-added services
Amid poor prospects for expanding lending business, we seek to cultivate new business fields
April 2017
Established Corporate Business Planning Department
Corporate Business Promotion Group
Commercial product planning
Business matching, etc.
Corporate Solution Group for
Evaluation of Business Viability
Solution proposals based on
business evaluations, etc.
Regional Revitalization Group
Top-line support
Start-up support, etc.
Business Succession and M&A Group
Business successions
M&As, etc.
Medical Sector Group
Loan support
Consulting, etc.
■Corporate Business Strategy (Establishment of the Corporate Business Planning Department)
Support growth of enterprises through programs that help expand sales channels and cultivate
entrepreneurial skills
Ryugin Startup Program
2017
New Project
1. Date : February 25, 2017 (Sat)
2. Venue : Okinawa Institute of Science and Technology (OIST)
B250 / Restaurant space
3. Participating startups (13 teams; 30 members)
10
Ryugin Startup Program Demo Day (Business plan presentations)
What is the "Ryugin Startup Program"?Program that utilizes Ryugin's resources and network to create and foster
innovative and competitive Okinawan venture companies (startups)
■Corporate Business Strategy (Top-line and Skill Development Support)
Fourth Business Forum on Okinawa’s
Culinary and Scenic Appeal
We have products unlike anything offered by other regional banks and designed to meet diverse needs
11
“Sumairu-kun" residence purchase support loans
Effective utilization of reduced mortgage loan tax!
0.5% fixed interest rate for the entire loan term!*For customers with a deposit balance in the same amount as the loan.
"Cash Back Loan" savings-linked mortgage loans
Get cash back on interest payments based on deposit balance!*Maximum 50% of the mortgage loan balance.
Ryugin reverse collateralized mortgage loans for customers over 60
First among Japanese
regional banks
First regional
bank in Okinawa
First regional
bank in Okinawa
Large-amount, open-use loans for senior citizens!
⇒ Enables seniors to borrow money without having to sell the family home!
Repayment method can be selected even after contract signed!
■ Business Strategy: Individuals (Mortgage Loans)
“Yuh Yuh Jinsei 60"
Increase speed, convenience and product appeal to meet customer demands
Expand channel functions
Expand functions, increase staff
and increase outbound calls
Direct Banking Center
Customers
Product descriptions
Home and workplace visits
TEL
WEB
Apply using a tablet (accurate
and rapid reception operations)
System for completing procedures online
WEB Channel
Branch Loan Center
Visit a branch
New products for customers outside Okinawa
12
<Features>For customers all over
Japan who love Okinawa
Two Okinawa-themed card
designs are available
Our aim: Providing customer-centric services
Construction and purchase of real
estate for investment purposes
Second-stage loans
Card loans that do not require
a branch visit
■ Business Strategy: Individuals (Consumer Loans)
0.15%
0.10%0.09% 0.09%
0.08%0.07%
0.06%0.05% 0.05%
0.04%
0.00%
0.03%
0.06%
0.09%
0.12%
0.15%
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Deposit yields Deposit yields (nationwide regional banks)
Steady increase, hinging on individual and corporate savings
1,199.6 1,226.2 1,258.5 1,274.2 1,317.0
468.8 494.6
529.2 580.8
586.1
129.3 161.9
179.4 183.3 144.2
1,797.8 1,882.8
1,967.2 2,038.4 2,047.4
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Changes in Deposit Balance
Individuals Corporations Public funds
* Including negotiable certificates of deposit
Reference: September 30, 2016
Sales of campaign products whenever needed
13
■Trends in Deposits (including Negotiable Certificates of Deposit)
(Billions of yen)
Changes in Deposit Yields
Higher balance thanks to increase in sales of single-premium insurance which offset a decline in sales
of JGBs and investment trusts
11.7 13.3 20.5 18.7 17.3
11.9
23.0
31.1 27.1
20.2 23.7
36.3
51.6 45.9
37.5
0
10
20
30
40
50
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Investment trusts Single-premium insurance
45.538
28.115 10.6
66.8
61.569.9
64.561.3
38.351.6
64.5
80.8 96.3
150.7 151.1
162.5 160.4 168.2
0
20
40
60
80
100
120
140
160
180
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Single-premium insurance Investment trusts JGBs
14
-0.50%
0.00%
0.50%
1.00%
5,000
10,000
15,000
20,000
Nikkei Stock Average Trends in long-term 10-year JGBs
20,8681.03%
8,295 -0.29%April 1, 2012 March 31, 2017
(Billions of yen)(Billions of yen)
■Trends in Sales of Assets in Custody
Changes in Balance of Assets in Custody Changes in Sales of Assets in Custody
Transition of Nikkei Stock Average and Long-term 10-year JGBs
(Yen)
Sales Branches and Outside Visits
15
Implement measures to support management of customer assetsFirst among Japanese
regional banks
Specialized staff at the head office may be at a distance from customers but can still provide direct support!
Enhance ability to maintain proper sales techniques in line with fiduciary duty by objectively confirming that
customers understand important matters regarding financial products with inherent risk before application!
Other efforts to support sales branch operations and provide training!
<Results>
First among Japanese
regional banks
Captures the audio of negotiation records
Fills in gaps in explanations about
important matters
Consultation
recordDirect Banking Center
■Strategy for Assets in Custody
August 2016
Add "Skype for Business" into tablet
terminals distributed to sales branches
October 2016
Start of "Skype Support"
*Consultation record audio recording system
1,966 1,992 2,019 2,069 2,071
690 1,126 1,214 1,247 1,266
▲ 133
65314 308 235
1,139
1,122
1,180 1,224 1,320 3,664
4,306
4,729 4,849 4,893
-500
500
1,500
2,500
3,500
4,500
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Others ATM-related Assets in custody Domestic exchange and account transfers Service revenue
Diversification of service revenue to expand earnings
16
* Others includes online banking, Biz Net, convenience store collection service, VISA debit cards, merchant management, and ATM lottery.
■Trends in Service Revenue
Changes in Service Revenue (excluding Creditor Group Insurance Premiums and Loan Guarantee Fees)
(Millions of yen)
Leading the way among regional banks in Japan
Start of "Ryugin Card Merchant Services" for both VISA and MasterCard international brands
17
・Visitors to Okinawa increasing each year
(Okinawa goal: 12 million people annually)
・Ministry of Economy, Trade and Industry:
“Policy to Promote a Cashless Society”
↓
・ Heightened credit card settlement needs
↓
・Shortage of credit card merchants
Background and Issues
・ Shorter remittance cycle for credit sales
・ Low merchant fee rates
・ Provide multifunction terminals at a low price
Features※ "Ryugin Card Merchant Services"
Okinawa 10.9%
National average 13.9%
Tokyo (highest in Japan) 19.8%
Ratio of credit card sales in the annual product
sales of the retail industry (2014)
(Source) Ministry of Economy, Trade and Industry: 2014 Commercial
Statistics Report
Enhance convenience to tourists by helping to establish environment for use of our own credit card
Contribute to revitalization of regional economy and secure new sources of revenue (merchant fees)
■Expand Credit Card Merchant Services
Pioneering efforts among regional banks in Japan
October 2015 Launched VISA Debit Card
More than
50,000
cards issued
18
February 2017 Began ATM-based lottery sales
Immediate settlement with no need for cash⇒Zero time spent waiting in line at ATMs and zero after-hours
handling charges
Local currency withdrawals at overseas ATMs⇒Convenient, effortless currency exchange
NO worries about exceeding deposit account credit limit⇒Targeted at individual customers aged 15 and over
Cash back 0.2% of amount spent!!
■Diversify Fee Business for Individuals
Launched on February 13, 2017
Started Lottery Ticket
Sales at ATM Machines
July 2016
October 2016
January 2017
January 2017
February 2017
March 2017
Tabaru Branch
Chatan Branch
Chatan Loan Center
Wakasa Branch
Itoman Branch
Gushikawa Branch
Tsuboya Branch
List of renovated branches (FY2016)
19
Chatan Branch Gushikawa Branch Wakasa Branch
Concepts
Building branches that customers will want to
visit again
Branch layout designed to accommodate the
future cashless society
⇒Eliminate counters, significantly reduce
workspace and use lobby to full advantage.
■Develop Branches that Make Customers Feel at Home
251.5 279.2 262.9 207.5
164.4
176.5
204.0 187.5
151.8
109.6
12.6
13.1 19.4
15.0
14.0
15.3
29.0 107.7
96.7
137.6
456.1
525.5
577.6
471.3
425.7
2.45
3.44
2.90 2.79 2.82
0.00
1.00
2.00
3.00
0
100
200
300
400
500
600
700
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Changes in Balance of Securities
JGBs Bonds
Local government bonds Other (foreign bonds, etc.)
Yen bond duration (Right scale)
Higher earnings through diversification of portfolios despite a lower balance due to JGB redemptions
0.50% 0.58% 0.55% 0.57%0.76%
1.00% 1.05% 1.06% 1.13% 1.14%
0.00%
0.50%
1.00%
1.50%
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Changes in Securities YieldsSecurities yields
Securities yields (nationwide regional banks) “Reference”End Sep.’16
20
■Trends in Securities Operations
(Billions of yen) (Years)
2.4 2.8
3.2 3.1 3.3
0.7
▲ 0.6▲ 0.2
0.1
▲ 0.1
1.2
2.2
2.9 3.3
3.7 3.9
▲ 1
0
1
2
3
4
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Interest and dividends Class 5 bonds
Share 3 balance of account Total
Changes in Securities-Related Payments
(Billions of yen)
Expenses increased due to prior investment in equipment and systems
10.1 10.1 9.9 9.8 10.5
10.1 10.4 10.7 1111.4
1.1 1.1 1.3 1.5
1.721.4 21.7 22 22.4
23.6
0
5
10
15
20
25
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Changes in Expenses
Personnel expenses
Non-personnel expenses
Taxes
3.6 4.0 4.4 4.5
2.0 1.9 2.2 2.2
1.3 1.4 1.5 1.4 1.3 1.2 1.2 1.4 1.1 1.2 0.7 0.8 0.8 0.7 0.8 0.8 10.4 10.7 11.0 11.4
0
2
4
6
8
10
12
End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Others Deposit insurance premiumsSG&A expenses Services outsourcing fee Outsourcing feesEquipment and system costs
Equipment and system costs surged ¥900 million compared with the figure posted in fiscal 2014
<Key investments (since fiscal 2015)> Applied to new branches (six branches, one loan center)
Expanded Direct Banking Center functions
Launched new products, including "I Love Okinawa!"
Ryugin VISA debit card
Credit card merchant management
ATM lottery21
■Expenses
(Billions of yen)
Changes in Property Cost Breakdown
(Billions of yen)
Aiming to become a comprehensive financial services group providing new value to customers
22
法人情報共有化
Ryukyu Leasing Co., Ltd.
April 2014, made consolidated subsidiary
July 2017, made wholly owned subsidiary (Tentative)
Ryugin Hosho Co., Ltd.
April 2014, made wholly owned subsidiary
Okinawa Credit Service Co., Ltd.
April 2015, made wholly owned subsidiary
Ryugin DC Co., Ltd.
Ryugin Research Institute., Ltd.
Ryugin Business Service Co., Ltd.
<Other initiatives> June 2016 Brought operations of Ryugin Office Service Co., Ltd. in-house
December 2016 Launched efforts to share corporate information with Ryukyu Leasing Co., Ltd.
January 2017 Initiated efforts to provide merchant services in collaboration with Okinawa Credit Service Co., Ltd.
■Group Strategy
Nurture human resources capable of providing diverse value that touches the "hearts of customers”
38 45 57 67 6920 24 23 25 25
35
39
106139
4547
49
56
61
106121
168
254
294
0
50
100
150
200
250
300
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
FP1 ClassSmall/Medium Enterprise ConsultantsMedical Management ConsultantsPoint of contact financial services
23Holding “Medical Manager Seminars" and “Medical Manager Qualification Certificates" award ceremonies and parties
Medical ManagersProducing certified Medical Managers from top-class financial institutions nationwide
Hu
man
resou
rce develo
pm
ent an
d system
reform
Work Style Reform
Cu
ltivate pro
fession
al skills
■Human Resource Development and System Reform
Changes in Numbers of Professionally Qualified Personnel
(Staff)
Enhance productivity and diversity
Corporate finance personnel and
specified sector consultants who
work to increase the corporate
value of our partners by
leveraging sophisticated,
specialized skills
Managers who energize the organization
Relationship managers who
stimulate customers with keen
personal skills
Financial planners who work to
bring abundance and fulfillment
in the lives of customers
Divisional planners with the
analytical and creative skills
necessary to deal with changes in
the managerial environment
Evolution into high-level performers with
skills that underpin enhanced productivity
24
Proactive involvement in local society
Bingata (traditional dyed cloth) design contest
Run Ryugin Kids School program and provide funds
to The Children's Cafeteria for food purchases
Supporting RYUKYU GOLDEN KINGS, FC
RYUKYU and RYUKYU CORAZON
Naha Marathon sponsorship/volunteers
Sports
promotion
Local
event
support
Passing on
traditional
culture
■Local Contribution Activities
Human
resource
development
support
activities
0.4
▲ 0.2
0.7
0.2
1.2
2.5
1.5 0.7
0.5
1.3
0.9
0.6 0.4
0.5
0.3
0.2
0.1
▲ 0.5
▲ 1.0
▲ 0.5▲ 0.7 ▲ 0.7
2.8
2.5
1.5 1.3
0.8
▲ 1.5
▲ 0.5
0.5
1.5
2.5
3.5
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
General provision for credit losses Specific allowance for credit losses
Loan amortization Other amounts
Gain on amortized loans Total
10.2
2.4 2.9 3.1 3.7
13.8
20.4 19.4 18.9 19.0
8.2 8.0 8.4 8.7 7.5
32.2 31.0 30.7 30.8 30.3
2.57%
2.31%2.18%
2.09%1.97%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
0
5
10
15
20
25
30
35
40
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Claims in bankruptcy
Loans in danger of default
Substandard loans
Written-off loan ratio (Right scale)
Downward trend in cost of credit and disclosed claims under favorable economic conditions
25
■Cost of Credit/Disclosed Claims
Changes in Net Cost of Credit
(Billions of yen) (Billions of yen)
Changes in Disclosed Claims
92.3
106.9 106.8 102.2 104.6
10.08%
10.84%
9.56% 9.52%9.22%
9.68%
10.50%
9.15%8.75%
8.42%
0%
2%
4%
6%
8%
10%
0
20
40
60
80
100
120
140
160
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
Regulatory capital
Consolidated Capital ratio (Right scale)
Non-Consolidated Capital ratio (Right scale)
Secured consolidated capital adequacy ratio in 9% range, even as risk assets increased
953.5 1,017.7
1,167.1 1,168.5
1,241.3
0
200
400
600
800
1,000
1,200
1,400
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17
* Calculated by Basel III national standard since March 31, 2014 26
■Capital Adequacy Ratio
Changes in Capital Ratio
(Billions of yen)
Changes in Risk Assets
(Billions of yen)
FY2017 FY2016
(Forecast) Year-on-year change (Actual results)
Ordinary revenue 38.0 ▲3.1 41.1
Ordinary profit 6.0 ▲1.4 7.4
Net income 4.0 ▲1.0 5.0
(Billions of yen)
* Increase and decrease are presented on a financial statement basis 27
FY2017 FY2016
(Forecast) Year-on-year change (Actual results)
Ordinary revenue 57.0 ▲3.7 60.7
Ordinary profit 7.0 ▲2.7 9.7
Net income for the period attributable
to the owners of parent company4.8 ▲1.6 6.4
<Non-Consolidated>
<Consolidated>
Anticipate lower revenue and profit, on both non-consolidated and consolidated bases, principally due
to a decrease in parent results.
■Performance Forecast for FY2017
(Billions of yen)
75%
10%
4%10%
1%2014
66%9%
7%
3%12%
3%
Deposit and loan income and expenditures
Marketable securities income and expenditures
Assets in custody fee income and expenditures
Credit card business fee income andexpendituresOther service profit incomez and expenditures
Other income and expenditures
28
7.8 8.5
9.1 9.3
6.3 5.6 5.8
6.5
2
4
6
8
10
End Mar.'13 End Mar.'14 End Mar.'15 End Mar.'16 End Mar.'17 End Mar.'18 End Mar.'19 End Mar.'20
Medium-term management plan
Strengthen service revenues and strive to achieve stable earnings
Changes in Key Revenue Ratios
70%
12%
4%12%
2%
2017
Diversification of earnings
■Revenue Outlook in Medium-Term Business Plan
(Billions of yen)Changes in Real Net Business Profit
Years ended March 31
2020
29
All enquiries regarding this presentation should be addressed to:
Bank of the Ryukyus,Limited
General Planning Department
Telephone: +81-98-860-3787
Fax: +81-98-862-3672
E-mail: ryugin@ryugin.co.jp
The information in this presentation is on a non-consolidated basis unless otherwise specified.
Information is based on summaries of published data, and some totals presented in this presentation may not add
up due to rounding.
This material contains information about the future(forward-looking information)such as forecasts, outlooks,
objectives and plans concerning the Bank. The forward-looking information was created based on information
available as of May 26,2017 and does not represent a guarantee of future performance. Certain assumptions and
hypotheses are used for the description of forward-looking information, but these assumptions and hypotheses
could be inaccurate from an objective perspective and may not materialize in the future. Forward-looking
information involves risks and uncertainties, and we ask readers to refer to the brief notes on the settlement of
accounts and securities report of the Bank for more details. The Bank will not update the forward-looking
information contained in this material.
■About This Presentation