Annual Annual Report
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The Chiba Bank, Ltd. Annual Report 2014 The Chiba Bank, Ltd. AnnualAnnual Report Report YearYear ended ended March March 31, 31, 2014 2014 20201414 Contents 2 Message from the President 5 Medium Term Management Plan 6 Financial Highlights 8 Our Operating Area 10 Retail Banking 12 Corporate Banking 14 CSR Activities 16 Compliance 17 Financial and Corporate Information Narita Haneda Tokyo Bay Aqua-Line Ibaraki Saitama Chiba City Tokyo Kanagawa Chiba Prefecture The Chiba Bank The Chiba Bank, a regional bank with its main operating base in Chiba Prefecture, celebrated the 70th anniversary of its founding on March 31, 2013. Growing in step with the region by actively responding to financial needs generated by the development of Chiba Prefecture, the Chiba Bank has become Japan’s second-largest regional bank with deposits of ¥10,541.2 billion and loans outstanding of ¥8,083.0 billion. The Chiba Bank has also maintained a high standard of soundness with a consolidated total capital ratio of 13.69% and a non-consolidated ratio of 13.04%. Deposits including NCD Loans Net Income Total Capital Ratio (Non-consolidated) (Non-consolidated) (Non-consolidated) (Consolidated) % ¥ ¥ ¥ 13.69 10.5trillion trillion8.0 43.2billion (Non-consolidated) 2nd among Japanese 2nd among Japanese 2nd among Japanese Regional Banks Regional Banks Regional Banks 13.04% Credit Ratings Long-term Short-term Standard & Poor’s A A-1 Moody’s A1 P-1 Rating and Investment Information AA- - As of March 2014 Chiba Prefecture Located close to Tokyo, Chiba Prefecture's population and GDP rank sixth in the nation. Blessed with geographical advantages and a warm climate, besides thriving agricultural and fishing industries, it has a well-balanced industrial structure, among which is one of Japan’s biggest industrial areas along the coast of Tokyo Bay. Beginning with Narita International Airport, a connected transportation network provides comprehensive access to destinations in the Tokyo metropolitan area, supporting peoples’ daily lives and companies' business activities in the region. With these benefits, Chiba Prefecture has even greater potential for future growth and development. Population Gross Prefectural Product Balance of Deposits Balance of Loans ¥ ¥ ¥ 6.21million 18.8trillion 25.6trillion 12.6trillion 6th among 6th among 6th among 7th among Japanese prefectures Japanese Prefectures Japanese Prefectures Japanese Prefectures Sources: National Census (October 2010); Economic and Social Research Institute, Cabinet Office (FY 2010); Bank of Japan (As of March 2014) Annual Report 2014 1 Message from the President Aim to be the “Best Retail” Banking Group, improving customer confidence Emerging Signs of Brightness in the Chiba Prefecture Economy Current State of the Chiba Prefecture Economy The Chiba Prefecture economy is recovering across a broad range of sectors that include personal consumption as well as housing construction and capital investment. Moreover, the decision to hold the Tokyo Summer Olympics and Paralympics in 2020 is also spurring a rising sense of hope for the future of the economy. Under these circumstances, annual arrival and departure slots at Narita International Airport are being expanded and a terminal exclusively for handling low-cost carriers (LCCs) is under construction. Meanwhile, the Ken-O Expressway continues to be improved. Traffic volume on this expressway’s Kisarazu- higashi—Togane section, which opened in 2013, has significantly surpassed projections and is creating new Hidetoshi Sakuma, President flows of people into the prefecture, both in the leisure and business fields. Plans call for the expressway to be extended further in the current fiscal year. Financial Results for the Year Ended March 31, 2014 Becoming a More Convenient and Appealing Region Financial Results for the Year Ended March 31, 2014 Reflecting these brisk investments, the decline in land prices in Chiba Prefecture has come to an end Looking at the Chiba Bank’s financial results for the and prices are even turning upward in some areas. fiscal year ended March 31, 2014,loans outstanding Furthermore, the past several years have witnessed as well as deposits both grew steadily, mirroring the the opening of a number of large-scale commercial reinvigoration of the Chiba Prefecture economy. Loans facilities that include a shopping mall in Makuhari and and bills discounted as of March 31, 2014 increased outlet malls in Kisarazu and Shisui. Employment has ¥170.9 billion from the end of the previous fiscal year also been improving, particularly in these areas. to ¥8,083.0 billion, while deposits rose ¥485.0 billion Another bright spot is the growth in the prefecture’s to ¥10,121.8 billion. As a result, consolidated ordinary population which rose year-on-year in April 2014, income increased ¥5.4 billion over the previous year to reversing a downtrend in the wake of the Great East ¥78.2 billion. Consolidated net income rose ¥2.2 billion Japan Earthquake. Looking ahead, there are firm to ¥46.4 billion, marking the fifth consecutive year of an expectations the population will continue expanding increase in income. The consolidated capital ratio was due to the ongoing construction of large-scale housing 13.69% as we continued to maintain a high level of developments within the prefecture. soundness. 2 The Chiba Bank, Ltd. Pursuing Business Vigorously under the As a Regional Financial Institution New Medium Term Management Plan The Chiba Bank will further enhance its functions as an The Aim of the New Medium Term information coordinator within the region. We gather a variety of information as we engage in business with Management Plan a wide range of customers in the region. Through our At the beginning of the current fiscal year, we started involvement in such business activities as attracting our new medium term management plan “Best Bank enterprises to the prefecture and participating in 2020 - 3 years of value creation.” The name of this regional development, we aim to utilize this information plan embodies two meanings. The first is to become for creating new businesses and invigorating the region. the “best” bank for our customers. To do so, we will at all times take the perspective of customers and Responses to Individual Customers provide them with even more convenient and secure services. Second, the term “2020” means we will put First of all, we will raise the quality of our services and the emphasis on making preparations for the medium strive to be a bank that makes customers feel “I’m glad and long terms. The Chiba Bank will strive to respond I chose the Chiba Bank.” quickly to such issues as the aging society and At the same time, we will strengthen our efforts declining birth rates and the advance of globalization. toward business focused on the aging society, such By 2020, we aim to become the “best retail” banking as business succession and inheritance. In 2013, the group providing top-class satisfaction and being highly Chiba Bank began offering the “Chibagin Educational regarded by our regional customers, centering on Funds Donation Special Account,” becoming the first individuals and small and medium-sized enterprises regional bank to offer such an account. This account (SMEs). has been earning high acclaim. To meet the needs of elderly customers, in April 2014 the Chiba Bank also Key Points of the Strategy began offering the “Chibagin Reverse Mortgage,” which allows customers to borrow funds as needed In view of the continuing break away from a within set limits using their home as collateral. deflationary economy, we will intensify our vigorous stance in the favorable market of Chiba Prefecture. In Human Resources Development doing so, we will promote three key initiatives, namely “Creating new corporate value,” “Further improving Human resources development is extremely important staff training,” and “Building a sustainable management for financial institutions as well as a key issue in our structure.” medium term management plan. In particular, offering highly sophisticated proposals is an essential element Specific Initiatives in all our businesses and the development of human resources with specialized expertise is the key to Besides actively responding to funding needs as a meeting this requirement. financial institution, we will focus on making proposals In addition, we believe that promoting active roles that help improve the businesses and lives of our for women is also crucial. To date, the Chiba Bank has customers. For example, the advance of globalization actively deployed women at sales locations, and there has been accompanied by a steady rise in the need are many women employees whose performance for customers to set up overseas business operations. results have exceeded those of men, or who work as The Chiba Bank already operates an overseas branch managers or in management-level positions network that is top class among regional banks and at headquarters. We will continue initiatives in this provides various types of support. Going forward, we area and will strive to realize satisfying and rewarding will further expand and upgrade this network as well as workplaces for current employees and for women our know-how. joining the Chiba Bank in the future. Annual Report 2014 3 The Chiba Bank Strides Forward “Chibagin Subsidy Scheme for Technology Research Together with the Regional Community and Development” in collaboration with Chiba University and Chiba Institute of Technology. Social Contribution Activities Playing a Role in Regional Development