FY2015 Financial Highlights & FY2016 Prospects(1247KB)

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FY2015 Financial Highlights & FY2016 Prospects(1247KB) FY2015 Financial Highlights & FY2016 Prospects FIDEA Holdings Co. Ltd. June 2016 This document contains forward-looking statements in regard to forecasts, targets and plans of FIDEA Holdings Co. Ltd. (“FIDEA”) and its group companies (collectively, “the group”). These forward-looking statements are based on information currently available to the group and are stated here on the basis of the outlook at the time that this document was produced. In addition, in producing these statements certain assumptions (premises) have been utilized. These statements and assumptions (premises) are subjective and may prove to be incorrect and may not be realized in the future. Underlying such circumstances are a large number of risks and uncertainties. Please see other disclosure and public filings made or will be made by FIDEA and the other companies comprising the group, including the latest kessan-tanshin, financial reports, Japanese securities reports and annual reports, for additional information regarding such risks and uncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document. In addition, information on companies and other entities outside the group that is recorded in this document has been obtained from publicly available information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed. The financial information used in this document was prepared in accordance with accounting standards generally accepted in Japan, or Japanese GAAP. Definitions of figures used in this document Consolidated: FIDEA Holdings (consolidated) 2 Banks: Shonai Bank (non-consolidated) + Hokuto Bank (non-consolidated) Copyright(c) 2016 FIDEA Holdings Co.Ltd. All rights reserved. FY2015 Financials Summary Income Statement Financial Results Review FY14 FY15 y-o-y Results We focused on increasing loans in the field of new (results) vs. frontier business relevant to regional revitalization (JPY in billions) (projected) (results) ① ② ③ ③-① projected projects, as growing field, such as renewable energy, ③-② agriculture and medical and nursing care. At the Ordinary revenue 50.9 – 56.0 5.1 – same time, we made efforts on promoting individual retail business centered on mortgage loans. Gross profits 40.1 42.2 42.3 2.2 0.1 Core Gross profits 39.0 40.5 40.1 1.1 (0.4) Due to sophisticated portfolio management of security investments accompanied by the increase Net interest income 31.8 33.8 33.7 1.9 (0.1) of fund profit and dealing profit of securities. Net fees and commissions 6.5 6.5 6.3 (0.2) (0.2) We have continued to improve our historical profit records in ordinary profits and net income Net gains(losses) on 1.0 2.1 1.1 0.5 debt securities 1.6 consecutively for three fiscal years. Ordinary profits G&A expenses (excl. increased by ¥2.1bn (18.8%) to ¥12.9bn and net 29.2 29.4 29.1 (0.1) (0.3) extraordinary expenses) income increased by ¥1.2bn (15.7%) to ¥8.8bn year on year. Personnel costs 15.3 15.9 15.8 0.5 (0.1) Non-personnel costs 12.1 11.6 11.5 (0.6) (0.1) <Net business profits> Net interest income Net fees and comissions Net business profits 10.8 – 13.1 2.3 – (JPY in billions) Others G&A expenses Net business profits Total credit costs 2.5 2.6 0.1 1.3 13.1 1.3 70 Net gains (losses) on 10.8 1.7 2.2 2.3 0.6 0.1 9.9 9.9 equity securities 50 8.5 Ordinary profits 10.8 12.9 2.1 (0.6) 2 13.5 2 0 1 5 1 6 Net extraordinary gains 30 5 6 6 (0.1) (0.6) (0.5) (0.4) 0.1 (losses) 30 31 30 31 33 Total of income taxes- 10 current and income 2.9 2.8 3.3 0.4 0.5 taxes-deferred △ 10 △ 28 △ 28 △ 28 △ 29 △ 29 Net income 7.6 10.0 8.8 1.2 (1.2) △ 30 Core OHR 74.84% abobe73% 72.53% (2.31)p FY2011 FY2012 FY2013 FY2014 FY2015 Copyright(c) 2016 FIDEA Holdings Co.Ltd. All rights reserved. - 2 - FY2016 Financials Prospects Company Projections for Consolidated FY2015 Results Projections Summary FY15 FY16 H1 FY16 Change Taking into account of our effort to accelerate (JPY in billions) (results) (projected) (projected) ① ② ② - ① regional revitalization strategy and strengthen profit in customer related field, we estimate our net Ordinary revenue 56.0 - - - income at ¥4.1bn. Gross profits 42.3 18.4 37.2 (5.1) We estimate security investment related profit Core Gross profits 40.1 18.2 36.8 (3.3) (Interest and Dividend of Investment Securities, Gains/Losses on Debt Securities, and Gains/Losses Net interest income 33.7 15.2 30.7 (3.0) on Equity) conservatively taking into account of Net fees and commissions 6.3 3.2 6.4 0.1 business environment's change in the financial Net gains (loses) on market and so on. debt securities 2.1 0.1 0.4 (1.7) G&A expenses (excl. 29.1 15.2 30.4 1.3 extraordinary expenses) Dividend of common stock Personnel costs 15.8 8.1 16.3 0.5 We have determined to increase a dividend for Non-personnel costs 11.5 6.0 12.0 0.5 the FY2015 to ¥6 per ordinary share increased by Total credit costs 2.6 1.6 2.3 (0.3) ¥1 taking fair business results into consideration. Net gains (losses) on 2.3 0.6 1.3 (1.0) A dividend for the FY2016 is planned to be ¥6 equity securities (interim dividend will be ¥3) per ordinary share. Ordinary profits 12.9 2.2 5.6 (7.3) Although we paid dividends in term end only for Net extraordinary gains (0.5) (0.0) (0.0) 0.5 the past years, by paying interim dividend, we (losses) would enrich the opportunity of compensation Total of income taxes- for the share holders. current and income 3.3 0.6 1.4 (1.9) taxes-deferred Net income 8.8 1.5 4.1 (4.7) Core OHR 72.53% - above 82% Copyright(c) 2016 FIDEA Holdings Co.Ltd. All rights reserved. - 3 - Key Financials Core Gross Profits Ordinary Profits Net Income (JPY in billions) (JPY in billions) (JPY in billions) 40.1 15 37.8 37.8 39.0 12.9 40 10 8.8 10.8 35 10.1 7.6 30 10 6.2 25 6.9 20 5 4.2 15 5 10 5 0 0 0 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Loans and Deposits Capital Adequacy Ratio ROE (Return on Equity) (pertaining to the standard in Japan) (JPY in billions) Loans Deposits 10.0% 10.0% 9.52% 3,000 9.12% 8.00% 8.80% 9.02% 7.70% 7.80% 2,362 2,433 8.0% 2,500 2,226 2,183 6.00% 8.0% 2,000 1,748 6.0% 1,602 1,664 1,719 1,500 4.0% 1,000 6.0% 2.0% 500 0 4.0% 0.0% 2013/3 2014/3 2015/3 2016/3 2013/3 2014/3 2015/3 2016/3 2013/3 2014/3 2015/3 2016/3 Copyright(c) 2016 FIDEA Holdings Co.Ltd. All rights reserved. - 4 - Net Interest Income Net Interest Income Deposit/Loan Rates and Investment Security Yield <2 Banks> Deposit rate Loan rate (JPY in millions) Deposit/Loan spread Others Deposit/loan spread Investment security yield 40,000 2.50% 33,731 30,645 31,303 30,920 31,872 1.92% 2.00% 1.76% 30,000 1.63% 4,518 6,106 1.51% 7,350 9,173 12,375 1.80% 1.41% 1.50% 1.65% 1.53% 1.30% 20,000 1.41% 0.96% 1.00% 0.86% 0.85% 1.27% 1.08% 26,127 25,197 23,570 10,000 22,699 21,356 0.50% 0.12% 0.11% 0.10% 0.10% 0.11% 0 0.00% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Interest Income Interest Expenses (JPY in millions) (JPY in millions) Loans Investment securities Others Deposits Borrowings and bonds Others 40,000 37,496 5,000 33,676 34,321 33,912 34,991 4,000 3,765 30,000 4,824 6,467 7,676 9,627 12,975 3,118 3,030 3,017 2,992 297 3,000 372 367 359 393 20,000 2,000 28,756 27,802 26,163 25,323 24,467 3,110 10,000 2,628 2,604 2,593 2,624 1,000 0 0 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 (Including Negotiable Deposits) Copyright(c) 2016 FIDEA Holdings Co.Ltd. All rights reserved. - 5 - Loans Average Balance and Loan Rate <2 Banks> Balance by Prefecture <2 Banks> (JPY in billions) (JPY in billions) Shonai Bank Hokuto Bank Akita Yamagata Miyagi Others 1,735 1,765 4,000 Loan rate 1,615 1,679 1,527 204 176 192 1.92% 1,500 181 1.76% 186 231 251 3,000 1.63% 212 1.51% 197 1.41% 168 1,000 570 578 575 2,000 1,694 1,753 524 551 1,469 1,546 1,612 805 722 740 783 1,000 696 500 647 684 720 733 734 773 823 871 911 948 0 0 FY11 FY12 FY13 FY14 FY15 2012/3 2013/3 2014/3 2015/3 2016/3 Balance by Borrower <Shonai Bank> Balance by Borrower <Hokuto Bank> (JPY in billions) Retail SMEs Municipal governments Others (JPY in billions) Retail SMEs Municipal governments Others 1,000 934 957 1,000 864 897 807 782 801 807 800 800 720 750 200 198 174 189 142 600 600 256 271 259 230 187 221 237 236 245 244 400 400 269 268 267 267 277 200 394 422 200 317 346 372 190 192 196 198 205 0 0 2012/3 2013/3 2014/3 2015/3 2016/3 2012/3 2013/3 2014/3 2015/3 2016/3 Copyright(c) 2016 FIDEA Holdings Co.Ltd.
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