IR Presentation - The 77 Bank · IR Presentation Results for Fiscal Year Ended March 31, 2012...
Transcript of IR Presentation - The 77 Bank · IR Presentation Results for Fiscal Year Ended March 31, 2012...
June June 55, , 20122012
IR PresentationIR Presentation Results for Fiscal Year Ended March Results for Fiscal Year Ended March 3131, , 20122012
Materials were prepared for the Bank’s presentation of its results for the fiscal year ended March 31, 2012 held on June 5, 2012.
1. Current state of Miyagi Prefecture
○Activities toward Reconstruction at 15 coastal towns and cities in Miyagi 1
2. Results for FY2012
○Summary of profits and losses 2 ○Major accounts / Interest rates / Interest margin 3 ○Credit-related expenses and credits disclosed under the Financial Reconstruction Law 4 ○Capital adequacy 5 ○Securities 6
3. Results of the Previous Medium-term Management Plan
○Results of the previous Medium-term Management Plan: “SSS Improvement Plan (Apr. 2009 – Mar. 2012)
8
4. Overview of the Medium-term Management Plan
○Business environment / Challenges for management 9 ○Overview of the Medium-term Management Plan:
“POWER for the Future” – 36 Months of Renewal and Growth – 10
○Positioning of the Medium-term Management Plan with an eye to the future 11
○Basic objectives 12 ○Priority measures 1 13 ○Priority measures 2 16
○Priority measures 3 19 ○Priority measures 4 20 <Reference> Numerical plan 21 5. Projected performance for FY2013 ○Profits and losses 23 ○Major accounts / Interest rates / Interest margin 24
ContentsContents
Activities toward reconstruction at Activities toward reconstruction at 1515 coastal towns and cities in Miyagicoastal towns and cities in Miyagi
Town or city name
Budgeted restoration and reconstruction
amount Principal objectives of the reconstruction plan
Reconstruction subsidy
allocation amount
(1) Sendai 154.4 Promote the development of agriculture into sixth-order industries along the east coastal region 78.1
(2) Ishinomaki 209.7 Promote the introduction of solar photovoltaic, algal biomass and other new energies 37.7
(3) Shiogama 9.4 Strengthen the fish market function and expand the types of fish handled beyond tuna 7.3
(4) Kesennuma 106.6 Establish a new fish processing complex through cooperation between the public and private sectors 9.4
(5) Natori 18.1 Develop the area surrounding Sendai Airport 7.5
(6) Tagajo 4.8 Evaluate and consider the establishment of a national earthquake and tsunami disaster museum 4.4
(7) Iwanuma 18.9 Establish a “hill of hope to last for a millennium ” to provide protection against future tsunami damage 17.5
(8) Higashi-matsushima 33.0 Attract large-scale solar (mega-solar) photovoltaic power
generation plants and facilities 20.3
(9) Watari 51.6 Revitalize local strawberry production, which has historically led the Tohoku region and promote local production expansion 29.8
(10) Yamamoto 34.9 Relocate two railway stations to inland areas and promote urban development in surrounding areas 14.4
(11) Matsushima 0.7 Cooperate with local government authorities along the Sanriku coast and help develop the Sanriku Reconstruction National Park 1.1
(12) Shichigaha-ma 7.7 Identify operating areas and promote the development of the
fishery and agriculture sectors into sixth-order industries 7.0
(13) Rifu 0.6 Establish a facility to provide protection against future tsunami damage while taking into consideration the scenic beauty of the Matsushima area
0.6
(14) Onagawa 16.6 Relocate such facilities as public offices and police stations that serve as the town’s nerve center to places with a higher elevation 10.2
(15) Minamisanri-ku 28.9
Repair and upgrade industrial and tourist facilities along coastal areas and relocate residential areas to places with a higher elevation
6.5
Total 695.9 251.8
1
11.. Current state of Miyagi PrefectureCurrent state of Miyagi Prefecture
((11))
((1515))
((44))
((1414)) ((22))
((55))
((1010))
((88))
((99))
((66)) ((1313)) ((33))
((1212))
((77))
((1111))
15 coastal towns and cities: Finalized reconstruction plan ⇒ Full-fledged implementation of the plan going forward
(JPY bn)
<Overview of the Miyagi Prefecture Reconstruction Plan>
<Overview of the reconstruction plan of 15 coastal towns and cities>
(Notes) 1. Budgeted restoration and reconstruction amounts for FY2013 2. The first and second stage portions of finalized subsidies (including joint-business portions with Miyagi Prefecture) included in reconstruction subsidies granted by the national government based on reconstruction subsidy business plans formulated by affected local government authorities
<Restoration period> FY2012 to FY2014
Period for restoring public facilities and providing basic infrastructure focusing mainly on earthquake victim support
<Rehabilitation period> FY2015 to FY2018
Period for upgrading and expanding support not only to those who were directly affected by the disaster, but also those individuals and businesses whose daily lives and activities have been adversely affected; period for restoring and improving infrastructure as a part of efforts to ensure the prefecture’s complete rehabilitation
<Development period> FY2019 to FY2021
Period for promoting strategic initiatives designed to boost the prefecture’s strengths and resources
FY2011 FY2012
YoY change
Increase/ decrease
Rate of change %
Gross operating income 83.0 [ 82.6]
82.0 [ 82.1]
(1.0) [ (0.5)]
(1.1) [ (0.6)] [Core gross operating income]
Interest income 73.1 72.5 (0.6) (0.8)
Fees and commissions 9.2 9.5 0.3 4.3
Gains (losses) on bonds 0.4 (0.1) (0.5)
Foreign exchange transaction income 0.3 0.1 (0.2)
Expenses 56.5 55.2 (1.3) (2.4) Operating income before provision of general reserve for possible loan losses
26.5 26.8 0.3 1.5
[Core operating income] [ 26.1] [ 26.9] [ 0.8] [ 3.3] Provision of general reserve for possible loan losses
3.1 2.5 (0.6)
Operating income 23.4 24.3 0.9 4.6
Special income and losses (7.2) (7.8) (0.6)
Gains (losses) on stocks 0.4 0.1 (0.3)
Losses on bad debt written-off 5.7 6.4 0.7
Reversal of reserve for contingent losses
— 0.1 0.1
Ordinary income 16.1 16.5 0.4 3.1
Extraordinary income 7.4 11.4 4.0
Transfer of the substitutional portion of the government pension program fund 7.4 11.4 4.0
Extraordinary loss 51.1 1.6 (49.5)
Loss on disaster 49.4 — (49.4)
Provision of reserve for possible loan loss 48.1 — (48.1)
Fixed assets related loss 1.0 — (1.0)
Income taxes (incl. deferred taxes) 3.0 15.7 12.7
Net income (Net loss) (30.6) 10.6 41.2 —
Credit-related expenses 56.9 8.8 (48.1)
Summary of profits and lossesSummary of profits and losses
22. . Results for FYResults for FY20122012
2
Ordinary income Increase after two consecutive years of decline
Interest income Decreased because of a fall in interest on loans and bills discounted due to declining interest rates
Net income Return to the black
(JPY bn, %)
Core operating income Despite a decrease in interest income, increase attributable mainly to successful cost saving efforts
JPY 4.0 billion attributable to the reversal of deferred tax assets resulting from a decrease in the income tax rate
Major accounts Major accounts / / Interest rates Interest rates / / Interest marginInterest margin
3
22. . Results for FYResults for FY20122012
■ Major accounts (average balances) FY2011 FY2012 YoY change
Loans and bills discounted 3,455.5 3,525.8 2.0
Corporate loans 1,990.5 2,085.9 4.8
[excl. spread loans] [ 1,180.3] [ 1,179.7] [ (0.1)]
[Spread loans] [ 810.2] [ 906.2] [ 11.8]
Consumer loans 756.1 751.6 (0.6)
[Housing loans] [ 702.8] [ 704.3] [ 0.2]
Loans for local governments
708.9 688.3 (2.9)
Securities 2,045.9 2,537.0 24.0
National government bonds
834.8 1,244.4 49.1
Local government bonds 114.3 95.1 (16.8)
Corporate bonds 726.2 836.8 15.2
Stocks 69.7 69.3 (0.6)
Others 300.9 291.4 (3.2)
Deposits and certificates of deposits
5,370.9 6,370.0 18.6
Retail deposits 3,716.4 4,259.9 14.6
Corporate deposits 1,250.1 1,428.7 14.3
Assets in custody (Term-end balance) 650.3 681.2 4.8
FY2011 FY2012 YoY change
Loans and bills discounted interest rate
1.62 1.49 (0.13)
Corporate loans 1.56 1.42 (0.14)
[excl. spread loans] [ 2.16] [ 2.08] [ (0.08)]
[Spread loans] [ 0.68] [ 0.58] [ (0.10)]
Consumer loans 2.36 2.22 (0.14)
[Housing loans] [ 2.09] [ 1.99] [ (0.10)]
Loans for local governments
1.25 1.16 (0.09)
Securities interest rate 1.11 0.92 (0.19)
Interest rate on deposits 0.09 0.05 (0.04)
Interest rate spread 1.29 1.10 (0.19)
Net interest margin 0.24 0.23 (0.01)
■ Interest rates / Interest margin (%)
* Ref.
(Note) Figures of “Assets in custody” are total of investment trusts, individual annuity insurance, public bonds and foreign-currency deposits
(JPY bn, %)
46.0 46.6 37.4 27.0 26.0 39.9
63.8 63.7 71.9 67.9
52.1 56.5
96.7
61.0 38.7
26.2 34.2
27.0 27.3
37.6
29.0
4.71 3.00
3.73 4.20 4.66 5.43 3.16
0
40.0
80.0
120.0
160.0
200.0 (JPN bn)
-22
-20
-18
-16
-14
-12
-10
-8
-6
-4
-2 0
2
4
6
8 (%)
破産更生債権及びこれらに準ずる債権
危険債権
要管理債権
金融再生法開示債権比率
112.8 105.2
135.5 148.9
129.2
174.2 170.7
FY2011 FY2012
Provision of general reserve for possible loan losses 3.1 2.5
Loss on bad debt written-off 5.7 6.4
Provision of specific reserve for possible loan losses Loss on sale of NPLs, etc.
4.4
1.3
5.2
1.2
Gains on provision of reserve for contingent losses – 0.1
Gains (losses) on provision of reserve for possible loan losses (Extraordinary loss) 48.1 –
Total 56.9 8.8
<Credits disclosed under the Financial Reconstruction Law>
Loans to bankrupt and quasi-bankrupt loans
Doubtful loans
Substandard loans
Ratio of credits disclosed under the Financial Reconstruction Law
■Credit-related expenses
(JPY bn)
CreditCredit--related expenses and credits disclosed under the Financial Recorelated expenses and credits disclosed under the Financial Reconstruction Lawnstruction Law
4
FY2013 Forecast
・・FYFY20122012 credit credit--related expensesrelated expenses ⇒⇒ A large proportion of credit A large proportion of credit--related expenses were related expenses were incurred in nonincurred in non--disaster stricken areasdisaster stricken areas
<Balance of reserve for possible loan losses>
Of which, disaster–related expenses
JPY 55.0 billion
Adequate reserves despite the rising Adequate reserves despite the rising ratio of nonratio of non--performing loansperforming loans
22. . Results for FYResults for FY20122012
(JPY bn)
8.4
17.3 6.0 8.8 0.7
56.9
0.16 0.24 0.27
1.64
0.02
0.53
0
20.0
40.0
60.0
FY2008 FY2009 FY2010 FY2011 FY2012
0.0
0.5
1.0
1.5
(%)
Credit-related expenses Credit-related expense rate
Mar. 2010 Mar. 2011 Mar. 2012 Mar. 2008 Mar. 2009 Mar. 2006 Mar. 2007
<Credit-related expenses and credit-related expense rate trends>
(JPN bn)
6464..99 5656..66 4545..33 5050..66 4343..00 9595..66 100100..77
リス
ク資
本配
賦原
資
リス
ク資
本配
賦額
リス
ク資
本使
用量
<Management of risk capital>
2H FY2012 1H FY2013
Tier ITier I 275275..44 Tier ITier I 283283..11
Not used 56.8
64.2
40.0
139.0
58.0
90.0
12.2
120.0
Capital adequacyCapital adequacy
5
40.9 49.8
34.3
20.0
Allocated capital 222.2
12.3 12.3
○Credit Risk Credit rating downgrade due mainly to the impact of the earthquake disaster and increase in allocated capital after taking into consideration such factors as the provision of funds for restoration and reconstruction
○Market Risk Allocation of capital commensurate with such factors as the projected increase in investment in securities
Allocated capital 191.3
Total Total amount of amount of
riskrisk 134134..55
((As of the end As of the end of Marof Mar. . 20122012))
< Capital adequacy ratio / Tier I ratio >
○As of the end of Mar. 2012 Capital adequacy ratio (non-consolidated): 12.33% Vs. end of Mar. 2011 +0.89 Impact attributable to public funds (subordinated loans: JPY 20.0 billion): +0.77 ○As of the end of Mar. 2012 Tier I ratio (non-consolidated): 10.97% Vs. end of Mar. 2011 +0.12
<Capital adequacy ratio>
Secured an appropriate capital adequacy ratio levelSecured an appropriate capital adequacy ratio level
22. . Results for FYResults for FY20122012
Mar. 2009 Mar. 2010 Mar. 2011 Mar. 2012
Capital adequacy ratio 12.84 13.04 11.44 12.33
Tier I Ratio 12.35 12.50 10.85 10.97
Tier I ratio excluding tax effect 10.42 10.72 8.89 9.38
(Reference) Capital adequacy ratio (BIS standard)
12.31 13.69 12.08 12.89
(%)
* When the internal model is not applied to liquid deposits: 2.09%
Amount of interest rate risk Tier I + Tier II Outlier ratio
JPY 18.0 billion JPY 319.2 billion * 5.66%
○ Reference: Outlier ratio (as of the end of Mar. 2012)
(JPY bn)
Allocation source
Used risk capital
Allocation source
Deferred tax assets Non–allocated capital Credit risk Market risk Operational risk
(50.0)
0
50.0
100.0
Mar. 2012
National gov. bonds
Corporate bonds, Short-term corporate bonds
Stocks
Others
Mar. 2011 Mar. 2010 Mar. 2009
Mar, 2013 Plan
0
1,000.0
2,000.0
3,000.0
0.0
10.0
20.0
30.0
National gov. bonds
Stocks
Rate of flotation
◆ Balance of direct loans and investments in Europe: JPY 21.8 billion (Valuation loss of JPY 0.4 billion)
Amount of above in PIIGS nations: JPY 2.1 billion (Valuation loss of JPY 0.3 billion) ◆ Impairment loss of securities: JPY 1.7 billion
(JPY bn)
(14.0)
57.3
35.1 38.1
68.5
(JPY bn) (%) <Securities portfolio>
1,717.0
Securities Securities ((11))
6
1,875.0 2,083.0
2,811.4
22. . Results for FYResults for FY20122012
■Balance of securities
Local gov. bonds
Mar. 2008
Local gov. bonds Corporate bonds, Short-term corporate bonds
Others
Mar. 2011 Mar. 2010 Mar. 2009 Mar. 2012 Mar. 2013 Plan
(JPY bn) < Gains (losses) from valuation of securities >
End of Mar.
2012
Gains (losses) from
revaluation Change from Mar. 31, 2011
Securities 2,849.4 38.1 3.0
Bonds 2,764.3 19.9 8.3
National gov. bonds 1,577.1 19.9 0.0
Floating-rate national gov. bonds
319.6 7.3 (6.4)
Local gov. bonds 82.2 1.6 0.0
Corporate bonds 865.7 14.7 4.6
Others 239.3 (16.3) 3.7
Yen-denominated foreign bonds
27.6 0.1 (0.4)
Foreign-currency bonds
82.5 (0.8) 1.9
Investment trusts
129.2 (15.6) 2.2
Stocks 85.1 18.2 (5.3)
* Excluding revaluation gains (losses), after impairment
2.28 2.70
3.47 3.47
1.10 0.99 0.98 0.80
0.0
1.0
2.0
3.0
4.0
5.0
Mar. 2009 Mar. 2010 Mar. 2011 Mar. 2012 Mar. 2013 Plan
0.0
1.0
2.0
3.0
Modified duration
Interests (%)
*Yen-dominated bonds other than investment trusts
Mar. 2011 Mar. 2012 Change Within 1 year 9.0% 5.8% (3.2)
1 – 3 years 18.9% 26.0% 7.1
3 – 5 years 23.0% 33.8% 10.8
Within 5 years 50.9% 65.6% 14.7
5 – 7 years 15.0% 12.7% (2.3)
7 – 10 years 29.3% 20.5% (8.8)
Over 10 years 4.8% 1.2% (3.6)
0
200.0
400.0
600.0
800.0
1,000.0
Within 1 year
1-3 years 3-5 years
5-7 years
7-10 years
Over 10 years
Others
Corporate bonds
Local gov. bonds
National gov. bonds
(JPY bn)
MarMar. . 20122012
MarMar. . 20112011
<Interests and modified duration of yen-denominated bonds>
■ Diverse and efficient investment in securities ◆Improve profitability and investment efficiency Secure stable profits through asset portfolio diversification Maintain and improving profitability through transactions that
involve the replacement of portfolio assets ◆Upgrade and expanding sources of profit
Expanding and diversifying investment methods and vehicles Secure periodic income through flexible investment
management
7
・After absorbing the Bank’s fund position, maintain the current level of investment management while preserving liquidity and soundness
・Rebalance the portfolio including investment in medium- and long-term bonds in line with interest rate levels and trends
<<Balance by maturity period>> <Composition of securities>
22. . Results for FYResults for FY20122012
Securities Securities ((22))
<<Composition ratio by maturity period>>
(%)
The SSS Improvement Plan basic objectives FY2009 Status of objectives achieved
FY2010 FY2011 FY2012 Vs. Basic objectives
Total deposits, loans and assets held in custody (as of the end of FY2012) More than 10,000 9,084.6 9,434.8 9,772.1 11,475.1 +1,475.1
Balance of loans and bills discounted to SMEs (as of the end of FY2012) More than 1,200 1,112.9 1,147.3 1,166.6 1,222.1 +22.1
Sales of investment trusts and individual annuity insurance for the period (for the period of the Medium-term Management Plan)
More than 200 – 43.1 90.6 162.1 (37.9)
Core OHR (FY2012)
Less than 65% 66.49% 69.27% 68.42% 67.18% +2.18%
Results of the previous MediumResults of the previous Medium--term Management Planterm Management Plan: : ““SSS Improvement Plan SSS Improvement Plan ((AprApr. . 20092009 –– Mar Mar. . 20122012))
33. . Results of the Previous MediumResults of the Previous Medium-term Management Planterm Management Plan
8
■Results against basic objectives stipulated under the previous Medium-term Management Plan: SSS Improvement Plan Achieved two of the four basic objectives (objectives achieved indicated by the shaded portion)
■ Results
(1) “Sales”: Enhance operating capabilities
・Increase the number of Relationship Managers (RMs) ⇒ increased the number of RMs from 300 to 450 or more (1.5 times or more) ・Promote the use of female employees ⇒ assigned female employees to such positions as head office money advisors (MAs); positive effect through operation branch
support in such areas as assets in custody sales
(2) “Speed-up”: Improve productivity
・Reduce expenditure ⇒ implemented measures resulting in reductions in expenditures of approximately JPY 1.1 billion on an average year basis compared with FY2009
・Review operating processes ⇒ effects resulting from operation branch BPR (business process reengineering): around nine hours (one day per operation branch) ・Introduce a new personnel system ⇒ took steps to more accurately evaluate individual skills and performance; introduced a personnel system that more appropriately
links benefits and compensation with performance
・Activities aimed at implementing a joint banking system ⇒ resolved to participate in the MEJAR integrated banking system
(3) “Service”: Contribute to stakeholders
・Returning profits to shareholders ⇒ undertook the acquisition of own shares (February 2011 to April 2011); increase in cash dividends despite a decrease immediately after the earthquake disaster; continue to the payment of stable cash dividends going forward
・Upgrade and expand IR activities ⇒ implemented IR meeting for individuals and regional communities (14 meetings during the period of the Medium-term Management Plan )
・Promote activities that contribute to local communities and help address environmental issues ⇒ adhered strictly to an energy-saving policy (among a number of initiatives, successfully reduced the level of head office electricity consumption during the summer period by approximately 25%)
AchievedAchieved
AchievedAchieved
(JPY bn)
Business environment Business environment / / Challenges for managementChallenges for management
9
1. Business environment (1) Economic and social environment ・Ongoing steps to rebuild both social and economic
platforms following the enormous damage caused by the earthquake disaster
・Continued decline in birthrates and the aging of society resulting in steady population contraction
・Increase in the volume of information and shifts in information quality due to the development of an Internet-based society
・Globalization and deindustrialization in Japan ・Change in the structure of industry within the prefecture ・Intense competition reflecting concentration in the Sendai
area (2) Financial environment ・ Continued operations under conditions where interest
rates are extraordinarily low due to ongoing financial deregulation
・ Slump in the demand for finance owing mainly to prolonged weak economic conditions
・ Heightened market risk attributable to the debt crisis in Europe
・ Response to wide-ranging systems and regulations including IFRS and Basel III
2. Ideal scenario
(1) Four key criteria of management ・ Place the utmost importance on trust ・ Contribute to the development of local
communities
・ Build an increasingly robust operating platform
・ Engage in activities with a strong sense of energy and vitality
(2) Provide strong reconstruction and development support following the earthquake disaster
(3) Respond appropriately to customer needs
(4) Respond effectively to changes in the environment and promoting growth potential
(5) Build high earning capacity, risk management capabilities, and a sound financial position
(6) Foster close ties with stakeholders
3. Pending issues
(1) Widespread uncertainty surrounding earthquake disaster reconstruction and growing credit risk
(2) Declining top line and prolonged low profitability
(3) Weakening loan capability
(4) Lack of high-quality human resources with strong consulting and interpersonal skills
Challenges to be addressed based on achievements and pending issues following completion of the previous Medium-term
Management Plan as well as the status of the Bank’s future operating platform
Enhance loan and Enhance loan and consulting consulting capabilitiescapabilities
Foster human Foster human resources and resources and expand human expand human
resource investmentresource investment
Invest in growth Invest in growth areas and foster areas and foster specialist fieldsspecialist fields
Improve profitability Improve profitability to ensure the early to ensure the early
repayment of public repayment of public fundsfunds etc.
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
Focus on earthquake Focus on earthquake recovery support recovery support
Address reconstruction Address reconstruction demanddemand
■Bank Image Sought by The 77 Bank
“Best creative bank” that creates a new era together with the region
■Name
Medium-term Management Plan: “POWER for the Future”
— 36 Months of Renewal and Growth —
■Period The three-year period from April 1, 2012 to March 31, 2015
Overview of the MediumOverview of the Medium--term Management Planterm Management Plan: : ““POWER for the FuturePOWER for the Future”” —— 3636 Months of Renewal and Growth Months of Renewal and Growth ——
10
1. Support earthquake recovery and revitalize the regional economy
■Basic policies
2. Strengthen loan and consulting capabilities
3. Further improve productivity
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
Medium-term Management Plan
“POWER for the Future”
Period: Three years
◇Foster human resources and expand human resource investment
◇Bolster relationships with the region and customers
◇Foster human resources and expand human resource investment
◇Bolster relationships with the region and customers
Current status and pending issues
Creative reconstruction of the regional community Entry and concentration by the manufacturing industry Focus on broad-based business rehabilitation
Continued decline in birthrates and the aging of society Concentration in the Sendai area Increasing sophistication of sales channel strategies Shift toward a joint banking system
Interpersonal skills Management capabilities Motivation
Interpersonal skills Management capabilities Motivation
○ Attract a concentration of manufacturing and next-generation industries that bring to fruition a prosperous Miyagi (toward gross prefecture production of JPY 10 trillion) ○ Build and restore a world-class primary industry base ○ Promote global business development ○ Establish compact cities and smart communities
A revitalized Miyagi and a new Tohoku era
○ A bank that harnesses its ○ A bank that harnesses its overwhelming presence in Miyagi and the Tohoku region with: ・the unwavering support of customers (bank of preferred choice) ・robust relationships, and ・a strong and warm-hearted 77 Bank brand image ○ A bank that provides comprehensive financial services with: ・its loan and consulting capabilities (abilities to promote dialog, put forward proposals, resolve problems), and ・optimal solutions ○ An institution that engages in activities with a strong sense of energy and vitality
Future image of the 77 Bank
Increasing sophistication and diversification of needs Increasing sophistication of solutions Intensifying competition
Support earthquake recovery and revitalize the regional economy
Support earthquake recovery and revitalize the regional economy
Strengthen loan and consulting capabilities
Strengthen loan and consulting capabilities
Further improve productivity
Further improve productivity
Continue to develop the financial services platform
Continue to develop the financial services platform
Positioning of the MediumPositioning of the Medium--term Management Plan with an eye to the futureterm Management Plan with an eye to the future
11
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
reconstruction
Earthquake
Rehabilitation
Growth
Basic objectivesBasic objectives
12
・Restore capital adequacy damaged by the effects of the earthquake disaster by building up retained earnings ⇒ Aim for the early repayment of public funds
*1 Balance of loans and bills discounted excluding local government and other public authority, Tokyo, Osaka, and Nagoya area branches as well as head office accounts *2 Balance of loans and bills discounted excluding local government and other public authority as well as head office accounts
・Utilize the sales structure established during the previous Medium-term Management Plan and accurately target customer needs ⇒ Strive for total sales that exceed the previous three-years during the period of the Medium-term Management Plan
・Amid a mixed and uncertain operating environment characterized on the one hand by rising reconstruction funding demand and, on the other hand, the repayment in advance of loans from money received from insurance claims and others, promote new lending for regional and local communities focusing mainly on Miyagi and target a growth rate of around 3% or more throughout the three-year period of the Medium-term Management Plan
11..
22..
33..
44..
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
Balance of retail loans and bills discounted *1
Result FY2010 FY2011 FY2012 2,070.9 2,084.4 2,093.3
Balance of retail loans and bills discounted in Miyagi Pref. *2 1,922.6 1,936.1 1,931.1
Sales of investment trust, insurance, and public bond sales
Result
FY2010 FY2011 FY2012
145.1 150.8 144.1
Net income
Result
FY2010 FY2011 FY2012
11.6 (30.6) 10.6
Core OHR
Result
FY2010 FY2011 FY2012
69.3 68.4 67.2
Objective As of Mar 31. 2015 (final year of the Plan)
JPY 2.15 trillion or more JPY 2 trillion or more
Objective
FY2015
Less than 67%
Objective Cumulative total for the period of the Medium-term
Management Plan JPY 450.0 billion or more
Objective FY2013 and FY2014
respectively FY2015, final year
of the Plan JPY 11.0 billion or more JPY 13.0 billion or more
(Fiscal year end, JPY bn)
(JPY bn)
(%)
(JPY bn)
・Bolstering the top line (revenues) while promoting cost savings
Corporate
Operating fund
Case 3,578
Individuals
Unsecured loan
Case 1,692
Amount 108.9 Amount 3.0
Capital expenditure fund
Case 801 Housing loan
Case 1,370
Amount 40.6 Amount 25.6
Total Case 4,379
Total Case 3,062
Amount 149.5 Amount 28.6
Priority measures Priority measures 11 ((Support earthquake recovery and revitalize the regional economySupport earthquake recovery and revitalize the regional economy))
13
Fulfill the Bank’s financial intermediation function
■Diversify methods with respect to the provision of funds ■Earthquake disaster-related loan performance (to March 31, 2012) ○ Operating funding needs account for roughly 75% ⇒ Demand for capital expenditure funding expected to follow
(Case, JPY bn)
○ Promote loans that do not overly rely on collateral and guarantees
■ Address reconstruction stage funding needs
◆77 Bank reconstruction private placement bonds
(Handling commenced from March 2012) <Private placement bond underwriting performance> 13 issues totaling JPY 1.5 billion (of this total 77 Bank private placement
bonds account for five issues amounting to JPY 0.8 billion)
◆ Recovery development assistance projects for SME group facilities ・75% of total business expenses provided through national and prefectural assistance ・Assistance in the preparation of application-related documents <<Bridging finance performanceBridging finance performance> > ((Miyagi portion Miyagi portion / / to March to March 3131, , 20122012) ) 7070 loans totaling JPY loans totaling JPY 44,,671671 million million <<Portion of own funds performancePortion of own funds performance> > ((Miyagi portion Miyagi portion / / to March to March 3131, , 20122012) ) 3333 loans totaling JPY loans totaling JPY 44,,185185 million million ○Actively respond to funding demand in the period after business set up going forward
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
◆ Promote ABL (asset based lending) (FY2012)
<ABL performance > 15 loans totaling JPY 3.5 billion
Examples: large-scale cranes, dairy cattle, electronically recorded and medical fee monetary claims
Increase loan activity through restoration and reconstruction sIncrease loan activity through restoration and reconstruction support upport by the smooth facilitation and provision of fundsby the smooth facilitation and provision of funds
14
■ Business rehabilitation and business operations improvement support
Strengthen business rehabilitation and management improvement support for customers
■ Use of reconstruction support and other funds
Business rehabilitation and business operations Business rehabilitation and business operations improvement support by the Enterprise Assistance improvement support by the Enterprise Assistance DepartmentDepartment ・Increase in responsible personnel from five ⇒ nine
(an increase of four staff) ・Rehabilitation plan formulation party performance 67 parties (FY2012)
Promote the use of DDS and DESPromote the use of DDS and DES ⇒ Work in progress to introduce to disaster-stricken companies along coastal regions in June 2012
Miyagi Reconstruction Bridge FundMiyagi Reconstruction Bridge Fund Established in August 2011 Established jointly with the Development Bank of Japan Scale: JPY 5.0 billion Determined fund (investment) recipients: three
The Great East Japan Earthquake SME The Great East Japan Earthquake SME Reconstruction Support FundReconstruction Support Fund Established in January 2012 Established jointly with several parties including Daiwa Corporate Investment Co., Ltd. Scale: JPY 7.4 billion (as of March 2012) Determined fund (investment) recipients: one
■ Use of public institutions
Miyagi Organization for Industry Promotion Miyagi Organization for Industry Promotion (established in December 2011)
The Great East Japan Earthquake Business The Great East Japan Earthquake Business Operator Rehabilitation Assistance Organization Operator Rehabilitation Assistance Organization ((commenced operations in March commenced operations in March 20122012))
Put in place a wide range of support tools Put in place a wide range of support tools including factoringincluding factoring, , debt guarantee and bridging debt guarantee and bridging financefinance
Operation branch visits by head office personnel responsible for assessments as well as proposal assessment and approval Smooth and timely provision of funds
Use of visiting and long Use of visiting and long--term onterm on--site assessmentssite assessments
■ Status of customers
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
<Visiting and long-term on-site assessment performance> (to March 31, 2012) Visiting assessments: cumulative total 746 branches Long-term on-site assessments: cumulative total of 57 days
Enterprise Turnaround Initiative Corporation of JapanEnterprise Turnaround Initiative Corporation of Japan ・Use in the rehabilitation of leading local shipbuilding
companies, ・Coordination of transacting financial institutions by the
Corporation, etc.
・ Accelerate business rehabilitation ・ Business rehabilitation by strengthening core businesses , etc.
[Facilitation of financing] (Overlapping loans) [Loans for affected companies]
Priority measures Priority measures 11 ((Support earthquake recovery and revitalize the regional economySupport earthquake recovery and revitalize the regional economy))
Reduce credit costs by improving the borrower category ranking of customers and providing rehabilitation support
15
Support customers in pursuing overseas business by taking full advantage of the existing network
Contribute to regional reconstruction and development (Boost the support for local companies)
◆ Promote lending to the agricultural sector ・Use of individuals (16) who have acquired qualifications as agricultural management advisors ・Business alliance with Nomura Agri Planning & Advisory Co., Ltd. (July 2011)
○Support for local companies for Asia business
(Agreement concluded in Nov. 2010 and after)
○Promote the business matching initiative ・Promote the business matching initiative by holding food and other trade fairs
<Number of contracts> 1,030 contracts (FY2012) ・Published Mi ya Gi Hajimemashite (Meet Miyagi’s
flavor and art), a catalogue of local products produced in Miyagi
⇒Provide national exposure to local products produced in Miyagi; provide customers with sales channel expansion support
○ Strengthen collaboration with local governments ・Strengthen support using PFI and PPP
PFI performance within the Prefecture: Nine (as of March 31, 2012) ・Gather information on and participate in reconstruction projects
<Overseas business support partners, etc.>
Operation branches and head office working in unison to swiftly and accurately address varied and
diverse needs while providing optimal solutions
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
Alliance date Partners
Nov. 2010 Hong Kong Trade Development Council
Feb. 2011 Miyagi Prefecture Apr. 2011 Bangkok Bank
Jun. 2011 DBJ Asia Financial Assistance Center
Aug. 2011 Factory Network China Dec. 2011 NEXI Jan. 2012 Nippon Express Sendai Branch Apr. 2012 Tohoku Economic Federation
○Strengthen activities in growth fields ◆ Strengthen activities in medical / welfare / nursing fields ・March 2012: increase specialized staff by one (currently four staff) ・Targeted increase in annual medical and welfare loans JPY 10.0 billion or more
ShanghaiShanghai
Hong KongHong Kong
BangkokBangkok
SingaporeSingapore
Dalian Dalian
Asia Business Support Dept. (Assigned four specialized staff)
Shanghai Shanghai Representative Office Representative Office
<Develop human resources with strong international business skills>
Cities where personnel are sent for training in Asia Dalian, Shanghai, and Hong Kong, with plans to
include Bangkok
Priority measures Priority measures 11 ((Support earthquake recovery and revitalize the regional economySupport earthquake recovery and revitalize the regional economy))
16
[Plan during the period of the Medium-term Management Plan]
[Achievements under the previous Medium-term Management Plan]
○Increase in the number of relationship managers
470470 ⇒⇒ 550550
○Increase in the number of loan officers
300300 ⇒⇒ 450450 or moreor more
Issues
Develop human resources who are capable of engaging in heartfelt dialogue and
are extremely helpful to customers
○ Strengthen speaking ability, communication skills, the ability to extract information, as well as perceptiveness and the ability to handle any and all situations
○Expand investment in human resource development
・Increase the number of personnel dispatched for training outside the Bank by around 40; upgrade and expand training, etc.
○ Enhance the ability to nurture personnel and foster leadership
○ Recognize and cater for discrepancies between generations
○ Provide head office OJT support
○ Respond to globalization
○ Competition and appropriate assessment
○ Improve evaluation systems and visualization
○ Provide incentives, etc. ・Revise commendation
systems ⇒Implement individual and
other commendations
Interpersonal skills Interpersonal skills Management capabilities
Management capabilities Motivation Motivation
Expand investment in human resource development
Priority measures Priority measures 22 ((Strengthen loan and consulting capabilitiesStrengthen loan and consulting capabilities))
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
Increase by Increase by 8080 or moreor more
1,112.9
1,147.3 1,166.6
1,222.1
14,261 14,471 14,735 14,854
1,000.0
1,100.0
1,200.0
13,000
11,000
12,000
13,000
14,000
15,000 Balance Customers
637.6 661.9 694.3 708.0 702.8
400.0
600.0
Second half FY2013 plan
33.1 27.7 28.5 29.9
12.2 10.3 10.0 7.2
6,074 4,078 3,943 3,992
0
20.0
40.0
60.0
800
1,000
-12,000
-8,000
-4,000
0
4,000
8,000 (Case)
Takeovers
Number of Housing loans (new) Housing starts
3,525.8
3,455.5
3,429.3
3,260.0
3,000.0
3,200.0
3,400.0
3,600.0
Mar. 2012 Mar. 2013 Plan
(JPY bn)
17
○ Implement appropriate initiatives ・Operation branches and head office to work in unison to uncover latent needs;
promote timely loan proposals
< Loans (average balance) >
■ Promote an increase in the balance of loans and bills discounted
Increase the balance of retail loans and bills discounted focusing mainly on Miyagi
<Number of customers and loan balance to SMEs> (JPY bn) (Customers)
■ Enhance housing loans
<Balance of housing loans>
1,747 cases
<Number of housing loans granted and housing starts in Miyagi>
・Increase in repayments finance by money received from insurance claims, etc. ・Actively promote Japan Housing Finance Agency disaster restoration housing
loans ⇒ Year-on-year decrease in the balance of housing loans
Capture restoration and reconstruction demand and shift to a growth trajectory
<Disaster restoration housing loans handled>
1,370 cases
1,663 cases
1,677 cases
Number of new housing loans
Priority measures Priority measures 22 ((Strengthen loan and consulting capabilitiesStrengthen loan and consulting capabilities))
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
Mar. 2011 Mar. 2010 Mar. 2009
Mar. 2011 Mar. 2010 Mar. 2009 Mar. 2012 Mar. 2013 Plan
(JPY bn)
First half FY2011
Second half FY2011
First half FY2012
Second half FY2012
Second half FY2013 plan
First half FY2013 plan
(JPY bn)
Mar. 2008 Mar. 2009 Mar. 2010 Mar. 2011 Mar. 2012 Mar. 2013 Plan
11,,844844 casescases / / JPY JPY 2929..66 billion billion ((based on acceptance by Japan Housing Finance Agency in FYbased on acceptance by Japan Housing Finance Agency in FY20122012))
Increase the balance of loans and bills discounted and expand the Bank’s customer base (1)
693 692 701 684
433 539 657 944
232 240 263 195 0
500
1,000
1,500
2,000
FY2009 FY2010 FY2011 FY2012 FY2013 Plan
(JPY mn)
Insurance
Investment trusts
Public bonds
○Strengthen assets in custody sales capabilities through collaboration with money advisors (MAs)
・ Continue accompanies sales visits 2nd half of FY2012: number of insurance product, investment trust, and
public bond proposals: over 1,400 proposals ・ Promote the shaft from liquid deposits to assets in custody in line with
the increase in money received from insurance claims, etc. ・ Strengthen follow-up initiatives toward customers holding assets in
custody ○Capture and retain individual customers using life consulting services ・Utilize the 77 Akaishidai Insurance Plaza (opened in November 2011) ・Upgrade and expand the products handled
Growing evidence of ripple effects from full-fledged operations
■Efforts for companies new to Miyagi and Tohoku
■Promote growth in the assets in custody base
18
<Change in sales commissions of assets in custody>
Favorable trends in sales of investment trusts and insurance products after the earthquake disaster
Further attract customers and strengthen salesFurther attract customers and strengthen sales
・Promote efforts for companies new to Miyagi and their related local companies
・Promote workplace banking for the employees of companies new to Miyagi
・Jan. 2012: Kanto Auto Works Ltd. newly established “a local procurement promotion center in Tohoku” in Ohira Village
⇒ Lift the rate of local procurement from the current level of 40% to 80%
・Jul. 2012: Management integration of three Toyota Group companies (Kanto Auto Works Ltd., Central Motor Co., Ltd., and Toyota Motor Tohoku Corporation)
⇒ Plans to launch TOYOTA MOTOR EAST JAPAN, INC. (head office: Ohira Village)
・ End of 2012: The first engine factory in Tohoku scheduled to come fully online
The north of Sendai City (Taiwa Town, Ohira Village)
MiyagiMiyagi
Head Office Yoshioka
branch (Assigned 2 RMs from
headquarters)
Morioka branch
IwateIwate
The southern part of Iwate Pref. (Kitakami City, Kanegasaki Town)
Kitakami branch (Scheduled to be opened in Jun. 2012)
Toward automobile production of 500,000 vehicles in Tohoku
<Recent activities by the Toyota Group in Tohoku>
Priority measures Priority measures 22 ((Strengthen loan and consulting capabilitiesStrengthen loan and consulting capabilities)) 44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
Increase the balance of loans and bills discounted and expand the Bank’s customer base (1)
19
⇒ Consider expanding the scope of system joint use going forward
■Adhere strictly to a policy of low-cost operations
Create loan and sales manpower and time
○Review head office operational processes
○ Consider reductions in expenditure by analyzing cost structures
○ Reduce administrative operations and operation branches through continued use of BPR
・Undertake a comprehensive review of administrative procedures
・ Consolidate operation branch administrative operations at head office
<Reference> BRP effect during the period of the previous Medium-term Management Plan (reduction achieved)
Around nine hours (one day per operation branch)
○Enhance the ability to carry out business tasks and duties through human resource development
○ Effectively use part-time employees Increase the number of employees by 250 or
more compared with the current level ⇒ Work toward a structure of 1,000 part-time
employees
Promote thoroughgoing cost reduction
■Take preparatory steps toward a joint banking system <Basic agreement details>
◆Scope of system joint use ・Backbone system (deposits, transaction, loans, other), ATMs, Internet banking, other ◆Commencement of system joint use: January 2016
○ Participate in the MEJAR joint banking system ・ Execute a basic agreement allowing use of the joint banking system in May 2012 *MEJAR (Most Efficient Joint Advanced Regional banking system) The industry’s largest joint system use group Participating banks: 77 Bank, Bank of Yokohama, Hokuhoku Financial Group (The Hokuriku Bank, The Hokkaido Bank)
Expected benefits
Promote efficiency
Priority measures Priority measures 33 ((Further improve productivityFurther improve productivity)) 44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
・Control medium- to long-term system expenses (apportionment of system development and operating expenses to participating banks) ・ Better response to the growing diversification and sophistication of financial services (upgrade and expansion of product and service details as well as timely response) ・Greater operational efficiencies through cooperation between the four banks (timely response to planning, development, and legal system requirements through participating bank cooperation; common sharing of operational tasks and duties)
Priority measures Priority measures 44 ((Continue to develop the financial services platformContinue to develop the financial services platform))
20
<Improve the branch and sales systems>
○ Improve the branch network ・Restore of branches damaged by the disaster; rebuild the external branch ATM network ・Establish branches that reflect changes in the market ○ Raise the overall strength of the 77 Bank Group
<Strengthen the Bank’s ability to address the needs of the elderly and young people>
○Strengthen efforts to attract customers and marketing capabilities
・ Attract customers according to their life stage ○Take into consideration customer convenience and
security ・ Redouble efforts to prevent financial fraud including
bank transfer scams
Strengthen the organization and human resources taking into consideration the need to better respond to Japan’s aging society and falling birthrate as well as
the growing sophistication and diversification of customers’ needs
<Strengthen investment securities management> ○Improve response systems for periods of disaster and other emergency
<Reinforce statutory and regulatory compliance and enhance internal control systems>
○Reinforce statutory and regulatory compliance and bolster response to antisocial forces
○Strengthen customer explanation, support, and other related management structures and systems
○Promote robust information asset management
<Enhance 77 Bank brand> ○ Reinforce the Bank’s emphasis on warm-hearted customer service ・ Improve the level of customer service Implement mystery shopper surveys and award commendations to operation branches that exhibit outstanding customer service ・ Participate in local community contribution activities: financial education, community events, cultural and educational promotion support, social welfare and other activities
○ Contribute toward an environment conscious society ・ Put in place environmentally conscious branches and facilities ・ Upgrade and expand environmentally conscious finance products ○ Improve shareholder value ・ Upgrade and expand IR activities for local communities as well as individual and overseas investors
44. . Overview of the MediumOverview of the Medium--term Management Planterm Management Plan
FY2012
result FY2013
plan
FY2014
forecast
FY2015 forecast
Vs. FY2012
Change Change (%)
Loans and bills discounted 3,525.8 3,575.0 3,592.0 3,624.0 98.2 2.8
Corporate loans 2,085.9 2,136.0 2,172.0 2,197.0 111.1 5.3
Consumer loans 751.6 755.0 764.0 776.0 24.4 3.2
Actual deposits and certificates of deposits
6,365.4 6,392.0 6,365.0 6,353.0 (12.4) (0.2)
Retail deposits 4,259.9 4,211.0 4,194.0 4,202.0 (57.9) (1.4)
FY2012
result FY2013
plan
FY2014
forecast FY2015 forecast
Vs. FY2012
Change Change (%)
Balance of retail loans and bills discounted 2,093.3 2,110.0 2,133.0 2,157.0 63.7 3.0
Balance of retail loans and bills discounted in Miyagi Pref. 1,931.1 1,947.0 1,967.0 1,987.0 55.9 2.9
Balance of retail loans and bills discounted outside of Miyagi Pref. 162.2 163.0 166.0 170.0 7.8 4.8
Actual deposits and certificates of deposits 7,163.9 6,351.0 6,399.0 6,373.0 (790.9) (11.0)
Amount of investment trust, insurance, and public bond sales 144.1 131.5 148.5 170.0 25.9 18.0
Accumulated amount during the Plan 131.5 280.0 450.0
<<ReferenceReference> > Numerical plan Numerical plan ((numerical plans are formulated and reviewed each fiscal yearnumerical plans are formulated and reviewed each fiscal year))
44.. Overview of the MediumOverview of the Medium--term Management Plan term Management Plan
21
I. Average balances of major accounts (JPY bn, %)
II. Term-end balances, etc. (JPY bn, %)
JPY 2.15 tn or more
JPY 2 tn or more
JPY 450 bn or more
(Note) Figures in represent the target at the end of the Medium-term Management Plan.
FY2012
result FY2013
plan
FY2014
forecast FY2015 forecast
Unsecured call rate O/N 0.08 0.08 0.08 0.08
JPY TIBOR (3 months) 0.34 0.34 0.34 0.35
5-year JGBs 0.37 0.35 0.40 0.50
10-year JGBs 1.05 1.08 1.15 1.25
Exchange rate (JPY/ USD) 79 81 82 84
Nikkei Average (At the term-end) 10,083 9,750 10,000 10,500
22
44.. Overview of the MediumOverview of the Medium--term Management Plan term Management Plan
FY2012
result FY2013
plan
FY2014
forecast
FY2015 forecast
Change from FY2012
Core gross operating income 82.1 80.5 81.8 84.6 2.5
Interest income 72.5 71.3 72.3 75.1 2.6
Fees and commissions 9.5 9.2 9.4 9.4 (0.1)
Expenses 55.2 57.0 56.7 56.6 1.4
Core operating income 26.9 23.5 25.0 28.0 1.1
Ordinary income 16.5 18.0 19.7 21.2 4.7
Net income 10.6 11.0 12.0 13.0 2.4
Core OHR 67.2 70.8 69.3 66.9 (0.3)
Capital adequacy ratio (Domestic standards) 12.3 12.4 12.6 12.9 0.6
III. Profits and losses
[Forecast on the major interest rates, etc.] (JPY, %)
(JPY bn , %)
JPY 13 bn or more
67 % or less
<<ReferenceReference> > Numerical plan Numerical plan ((numerical plans are formulated and reviewed each fiscal yearnumerical plans are formulated and reviewed each fiscal year))
(Note) Figures in represent the target at the end of the Medium-term Management Plan.
Profits and lossesProfits and losses
55. . Projected performance for FYProjected performance for FY20132013
23
FY2012 result
FY2013 plan
YoY change YoY change
Gross operating income 82.0 (1.0) 80.0 (2.0)
[Core gross operating income] [ 82.1] [ (0.5)] [ 80.5] [ (1.6)]
Interest income 72.5 (0.6) 71.3 (1.2)
Fees and commissions 9.5 0.3 9.2 (0.3)
Gains (losses) on bonds (0.1) (0.5) (0.5) (0.4)
Foreign exchange transaction income 0.1 (0.2) 0.0 (0.1)
Expenses 55.2 (1.3) 57.0 1.8
Operating income before provision of general reserve for possible loan losses
26.8 0.3 23.0 (3.8)
[Core operating income] [ 26.9] [ 0.8] [ 23.5] [ (3.4)]
Provision of general reserve for possible loan losses
2.5 (0.6) 0.0 (2.5)
Operating income 24.3 0.9 23.0 (1.3)
Special income (losses) (7.8) (0.6) (5.0) 2.8
Gains (losses) on stocks 0.1 (0.3) 0.8 0.7
Losses on bad debt written-off 6.4 0.7 6.0 (0.4)
Reversal of reserve for contingent losses 0.1 0.1 – (0.1)
Ordinary income 16.5 0.4 18.0 1.5
Extraordinary income 11.4 4.0 – (11.4)
Extraordinary losses 1.6 (49.5) 0.5 (1.1)
Income taxes (incl. deferred taxes) 15.7 12.7 6.5 (9.2)
Net income (Net loss) 10.6 41.2 11.0 0.4
Credit-related expenses 8.8 (48.1) 6.0 (2.8)
(JPY bn)
FY2012 results
FY2013 plan
YoY change YoY change
Major accounts (average balances)
Loans and bills discounted 3,525.8 2.0 3,575.0 1.4
Securities 2,537.0 24.0 2,939.7 15.9
Deposits and certificates of deposits 6,370.0 18.6 6,398.0 0.4
Interest rates / Interest margin
Loans and bills discounted interest rate 1.49 (0.13) 1.42 (0.07)
Securities interest rate 0.92 (0.19) 0.79 (0.13)
Interest rate on deposits 0.05 (0.04) 0.04 (0.01)
Interest rate spread 1.10 (0.19) 1.07 (0.03)
Net interest margin 0.23 (0.01) 0.18 (0.05)
Reference (term-end balances)
Balance of retail loans and bills discounted 2,093.3 0.4 2,110.0 0.8
Balance of assets in custody 681.2 4.8 712.0 4.5
Major accounts Major accounts / / Interest rates Interest rates / / Interest marginInterest margin
24
55. . Projected performance for FYProjected performance for FY20132013
(JPY bn, %)
(Note) Figures in the “YoY change” column of major accounts (“Loans and bills discounted,” “Securities” and “Deposits and certificates of deposits” accounts) , “Balance of retail loans and bills discounted,” “Assets in custody” and “Total deposits, loans and assets in custody” show the rate of changes, and figures in the “YoY change” column of interest rates / interest margin show percentage points.
This is a Japanese-English translation of the presentation material for your convenience. In the case that there is any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct. Please note that the projections described in this document do not guarantee future performance. Future performance projections may differ from actual results due to uncertainty caused by factors such as changes in the business environment.