THE GUNMA BANK REPORT 2020 the GUNMA BANK REPORT Integrated Report
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Disclosure magazine [main part] magazine [main Disclosure Integrated Report Integrated The Gunma Bank, Ltd. THE GUNMA BANK REPORT 2020 THE GUNMA BANK REPORT Integrated Report Disclosure magazine [main part] Published in July 2020 Edited by Public Relations Office, Corporate Planning Department, The Gunma Bank, Ltd. 194 Motosojamachi, Maebashi, Gunma 371-8611, Japan Phone: +81-(0)27-252-1111 (key number) The Gunma Bank, Ltd. Corporate Philosophy It is our mission to take actions that will foster the development of regional communities. As a member of the regional community, we are committed to strengthen- ing a relationship of trust with all community members and playing a central role in promoting prosperity within local regions. To this end, we will strive to improve financial services and continue healthy growth while expanding our areas of activity. Our primary goal is to support regional communities in their efforts to develop industries, promote culture and build a prosperous life. The foundation of our business is to strengthen a creative relationship with our customers. We highly value close ties with our customers and always strive to create what we believe is best for them. Our job starts at this point by pursuing what we can do to support them. It is our goal to establish a future together with our customers. Our operations are based on the motto “Be a good citizen first to become a good entrepreneur.” Our first goal is for each employee to be a good citizen. It is the first step in building empathy and trust with our customers. In doing this, we can actively take part in society by acting as honorable people. We work each day under the principle of good citizenship. Our corporate culture is based on the value of face-to-face communication within our organization. We endeavor to create an efficient organization where each employee’s personality traits are best used. To achieve this, we respect each individual’s personality and place high importance on opportunities where individuals can perform at their full potential as well as the generation of accurate performance reviews. These measures allow us to establish a corporate culture assuring a good work environment. Kazuo Saito Akihiko Fukai Chairman President Editorial Policy Coverage of Reporting Inquiries The Gunma Bank created the “The Gunma Bank Report 2020 (Integrated Duration: Fiscal 2019 (from April This report acts as a main part of the disclosure magazine (explanatory doc- Public Relations Office, Report)” to give our stakeholders an overview of our Bank Group, the devel- 2019 to March 2020) uments pertinent to business and financial status) prepared pursuant to the Corporate Planning Also includes some in- opment of our marketing strategies and its management base from the two Banking Act Article 21. When using this report as a disclosure magazine, please Department, formation for April 2020 refer, at the same time, to “The Gunma Bank Report 2020 (Annex).” The Gunma Bank, Ltd. perspectives of financial information and non-financial information. and later. When editing the report, we referred to the “International Integrated This report includes “descriptions about future performance” relating to Scope: The Gunma Bank, Ltd. and the financial situation and operating results of the Gunma Bank and its Group Reporting Framework” released in December 2013 by the International Inte- its subsidiaries (The Gunma 194 Motosojamachi, Companies. These descriptions have been based on the information available grated Reporting Council (IIRC) and the “Guidance for Integrated Corporate Bank Group) Maebashi, Gunma 371-8611, Disclosure and Company-Investor Dialogues for Collaborative Value Cre- at the date when this material was prepared, and the outlook that might influ- Japan Phone: +81-(0)27-252-1111 ation” formulated by the Japanese Ministry of Economy, Trade and Industry. ence future results in addition to some preconditions (assumptions). They do Date of Publication (key number) This integrated report was confirmed by our management to be appropri- not guarantee the described future results of the Bank and its Group and may ately created and information disclosed according to our “disclosure policy.” July 2020 involve risks and uncertainties. 1 Content Gunma Bank Image Song You can listen to the song on our website: 1 T h e G u n 1. The Gunma Bank m https://www.gunmabank.co.jp/info/song/ a Profile and History of The Gunma Bank �� 4 B a Company Overview/ n Financial Information Highlights ����� 6 k Message from the President �������� 10 You can also obtain a variety of information from Interview with an Outside Director ���� 16 our official SNS sites. Value Creation Process at the Gunma Bank � 18 2 2. Mid-Term Business Plan M 2019 Mid-Term Business Plan i d “Innovation New Dimension” - T - Toward delivering value - �������� 20 L I N E I D : USER ID: e r @gungin @gunma_bank m Basic Policies and Strategic Themes ���� 22 B Consolidated Quantitative Target u s as of the Final Fiscal Year of the Plan i n (fiscal year ending March 31, 2022) ���� 24 e s s Long-Term Target ������������� 25 P l Major Quantities for Achieving the Targets � 26 a n 3. ESG Initiatives Declaration of SDGs and Priority Issues �� 36 Environmental Initiatives ��������� 38 Social Contribution Activity Initiatives ��� 40 3 Non-Financial Information Highlights E (ESG/SDGs) ��������������� 42 S G Corporate Governance ���������� 44 I n i Executives ���������������� 48 t i a Compliance Management System ����� 52 t i v Risk Management������������� 54 e s Response to the Novel Coronavirus Infection � 60 Communication with our Shareholders and Investors ��������������� 61 Service Network ������������� 63 2 3 1. The Gunma Bank Profile and History of The Gunma Bank 1 GUNM AN ISTORY 1 T 群馬銀行についてh e History of Integration and Reorganization ■February 1970 Tokyo Stock Exchange, Inc. (Listing changed to the first section) G It is 142 years since the original bank started, 88 years since the foundation of the current bank, u n and 65 years under the name of The Gunma Bank. m a September 1932 ■Trend of business performance B The Gunma Prefecture Kinyu, Ltd. was established Consolidated net profit attributable to owners of the parent a n with the aim of integrating small and middle-sized (Unit: Hundred millions of yen) k financial institutions in Gunma Prefecture. The origin bank Establishment of the Bank Name changed 300 286 283 259 263 233 222 206 198 200 187 The 39th The Integration The Gunma 2 National and Gunma 100 M reorganization Daido Bank i Bank Bank d - T 0 e FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 r m 1878 Establishment November 1932 1955 B of the origin bank The name was changed to The u Gunma Daido Bank after an ■Recent Mid-Term Business Plans s i absorption-type merger of two banks n e (Gunma and Joshu). Strengthen Value-proposition s s Foundation of the Bank P l a “V-Plan” “Value for Tomorrow” n Around April 203 April 2016 1926 1932 1944 - Evolution to a bank that - Value proposition toward tomorrow - 1915 March 2016 enables value proposition - March 2019 Establish a sustainable business model for While continuing our tradition of “tomorrow” through the creation of new opportunities for revenue. Ordinary, savings (24 banks) (7 banks) 6 banks “Improvement in the quality of service,” and commercial were this concept has evolved to that of banks in Gunma integrated “Value Proposition.” Prefecture (About 40 banks) 3 E S G I n i t Jun. 1989 Dec. 1998 Aug. 2005 Aug. 2008 i a Finance futures trading OTC sales of securities Securities Inheritance-related service t i Start of investment trust intermediary v e service s Business Apr. 1961 Apr. 1983 Jan. 1994 Apr. 2001 Feb. 2007 Nov. 2016 Foreign exchange business OTC sales of public bonds Trust business OTC sales of Issuing of credit cards by the Bank’s main body Leasing intermediary service insurance products 1960 1970 1980 1990 2000 2010 2016 2018 22 1981 New Banking Act 1993 Financial System Reform Act 1998 Financial System Reform Act <Monetary Policy> Apr 2013 Financial liberalization (Establishment of securities (Investment and insurance Introduced quantitative and qualitative monetary easing policy From Jan 2016 Establishing fully started subsidiary, bank enters trust ) window sales lifted) Changed to minus interest rate policy and Investing Feb. 1971 Mar. 1982 Feb. 1991 Feb. 2016 Apr. 2018 Gunma Chuo Kogyo Co., Ltd. The Gungin Card Co., Ltd. Gunma Finance (Hong Kong) Ltd. Gungin Securities Co., Ltd. Gungin Consulting Co., Ltd. in Subsidiaries Transportation of goods, Credit card services Financing and securities dealing in Hong Kong Securities dealing Customer consulting services maintenance of automated and the Like Equity method affiliate Consolidated subsidiary Consolidated subsidiary Consolidated subsidiary teller machines (ATM) Expansion of the of Expansion Business of Scope Consolidated subsidiary Sept. 1983 Jul. 2016 (capital participation) Jun. 2018 Gunma Shinyo Hosyo Co., Ltd. Sky Ocean Asset Management Co., Ltd. FinX DIGITAL Co., Ltd. Loan guarantee business Investment trust management business Promotion of digitalization Consolidated subsidiary Equity method affiliate Joint investment by seven regional banks Oct. 1973 Jul .1986 Gungin Lease Co., Ltd. Gungin System Service Co., Ltd. Providing consulting proposals with highly specialized expertise based on the Leasing Software development and sales collective strengths of the Group. Consolidated subsidiary Equity method affiliate 4 5 Company Overview Major Shareholders (as of March 31, 2020) Name: The Gunma Bank, Ltd. (as of March 31, 2020) Date of establishment: September 1932 Number of Shareholding ratio Name shares held 1 Location of head office: 194 Motosojamachi, Maebashi, Total assets: 8,403.1 billion yen (%) 1 (in thousands) Gunma Deposits: 7,050.1 billion yen Capital: 48.6 billion yen T Loans and bills discounted: 5,602.3 billion yen The Master Trust Bank of Japan, Ltd.