Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed"
FinancialFinancial ResultsResults forfor FYFY 20032003 endedended MarchMarch 31,31, 20042004
June 3, 2004 1 (Projection) (Projection) (Projection) 73.0 30.0 21.0 ¥27.5 bil. Consolidated Impairment loss wImpairment rite-off securities on costs Credit 0.6 31.5 30.9 25.7 68.4 71.5 8.9 505 15.6 34.8 Net Income 67.8 33.8 77.5 111.3 (26.7) Real Net Business Income Real 5.1 70.5 55.3 50.2 13.1 Credit Costs & Write-offsCredit of Securities 00/3 01/3 02/3 03/3 04/3 05/3 2.9 62.7 38.1 00/3 01/3 02/3 03/3 04/3 05/3 16.2 00/3 01/3 02/3 03/3 04/3 05/3 35.2 *Real net business income = Net business income - Net transfers to general reservelosses for possibleloan *Credit costs = Disposal of non-performing loans + Net transfers to general reserve for possible loan losses 0 0 80 70 60 50 80 40 40 20 Impairment loss write-off on securities write-off loss Impairment 120 (¥Billion) (¥Billion) (¥Billion)
Foreword plan, “100 Weeks of ness Income decreased year, leading to a further rforming loans turned the e-offs of investment y, we would like to customers’ needs are nt of commercial ecting the slow recovery ecting the slow recovery hit a record ¥25.7billion, ng loans and investment cutting expenses, was cutting expenses, us change, quick and us change, financial condition. financial onsol.) reached 7.1%, an onsol.) reached 4.3%, to ¥68.4billion, refl 4.3%, to ¥68.4billion, we must which is an issue business, in corporate fiscaladdress in the next year. in profitability our restructuring we are how outline of 100 weeks, via the time frame a limited Innovation and Speed”. business such as housi trust sales, as well Real Net Busi successful, to responses appropriate the key to success. Toda medium-term management securities fell sharply. sharply. securities fell Tier I capital ratio (c increase of 0.5% year on in our improvement as the disposal of non-pe corner and losses on writ In an era of continuo In an era Although the enhanceme Net Income for FY2003 ■ ■ ■ 2 ng Corporate Governance
Section IIISection Sheet Balance Up Robust Building 2004 of Fiscal Year NPLs at end NPLs Reducing Aggressively Net Business Income Costs less than Real Credit Effect of Price Decline Has Lessened Land 24 Effect of Interest Rate RiseConditions Maintain & Improve Financial Sound 22 25 27 23 Appendix 26 Appendix I Strengtheni Appendix II Regional Economy Appendix III Indicators Management Table of Contents eral Consumer Loanseral 12 Intensification of Profitability Intensification Steady Increase in Fee-based Business in Fee-based Steady Increase Plaza” Style of Branch “Consulting New Sales Product of Financial Further Enhancement to SMEsLoans Increase in 15 Staff Specialist to Key AreasAssigning 13 to Customer Needs Responses Speedy 14 CLOChiba Services Financial Provide Integrated 17 18 16 20 19 Section I of Financial Results Summary Results(1)(2) Summary of Financial PlanManagement Target Indicators in the for FY2004 Projections Earnings Section II of Reform Structural 6 4 Profitability Higher Achieving Loans in Housing Steady Increase Pursuing Convenience by New Channels 7 of Non-Collat Enhancement 11 10 9 Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed" Summary of Financial Results FY2003 ended March 31, 2004 4 2H 1.1 2.2 56.9 60.2 FY2003 1H 1.1 2.9 60.5 56.5 Foreign currency Others (JPY) Loans (JPY) FY2003 2H 1.2 2.4 61.2 57.7 e in credit costs & e in credit costs & FY2002 Net Interest Income Net Interest Net Interest Income Net Interest 1H 1.3 3.5 income has halted 58.7 63.6 income has halted FY2002 Decline in Net interest Decline in Net interest Billion) ￥ 66 62 58 54 ( ly thanks to the decreas ly ly thanks to the decreas ly ment securities, while Real net business ment securities, while Real net business 4.98.9 2.0 (2.9) 25.7 16.8 (6.3) (0.0) 6.2 15.175.6 16.838.8 74.133.0 1.7 37.171.5 (1.5) 33.268.3 (1.6) 68.4 0.1 67.277.8 (3.1) (1.1) 68.441.1 (9.3) 31.0 (10.1) 18.6 40.3 21.6 (b) (a) (a)-(b) (59.2) (28.1)(13.8) 31.0 1.4 15.2 147.2124.9 142.5 120.8 (4.6) (4.0) 2003/3 2004/3 the previous year end. the previous year the previous year end. the previous year Billion> ￥ < eneral reserve for possible loan losses loan eneral reserve possible for g Summary of Financial Results (1) (P/L) Net interest income interest Net Fees and commissions Non-personnel expenses Disposal loans non-performing of stocks to related (Losses) Gains Retirement benefit expenses write-offs of impairment losses on invest income decreased from Ordinary profit & Net income increased great write-offs of impairment losses on invest income decreased from Ordinary profit & Net income increased great Gross businessprofit Expenses expenses Personnel Realnet business income income business net Core Net transfer to income business Net Net non-recurrentincome and losses Ordinary Profit Net income 5 22.4 5,678.1 115.9 120.8 (17.5) (a)-(b) (94.6) (94.6) Overseas Public sectors Midsize Major & companies Medium-sized & Small companies Partial direct write-offs 485.5 (a) 5,511.3 1,180.1 7,177.0 2004/3 16.0 702.7 628.7 4,425.1 503.1 (b) 5,395.3 1,157.6 7,056.2 18.9 2003/3 +3.6% 707.6 688.5 5,768.5 5,772.7 4,353.3
(9.3) 29.3 38.7 (b) (a) (a)-(b) 2003/3 2004/3 Deposits have also grown, Deposits have also grown, Loans to Small & Medium-siz Loans Loans to Small & Medium-siz Loans Billion> ￥ < Summary of Financial Results (2) (B/S) Call LoansCall LoansSecurities assets tax Deferred deposit of certificates Negotiable 190.0 116.6 75.1 stock 172.6Capital 5,606.4 1,346.4 surplus (17.3) Capital 73.3 99.4 5,678.1 1,458.7 earningsRetained 112.2 (43.3) 24.3 71.7 121.0 98.1 97.4 121.0 119.1 98.1 - 21.6 0.0 Net unrealized gains on other securities other on gains unrealized Net AssetsLiability Deposits 8,012.0 equityStockholders' 8,217.8 205.7 7,691.8 7,174.9 320.1 7,837.4 7,266.4 380.3 145.5 91.5 60.2 6 (¥Billion) 8% 8% Below 8% 8% Below Around Around Around 06/3 75.0 36.0 50% Around Around Around 06/3 36.0 75.0 50% 0.4% 0.4% (¥42.8) 32.0 32.0 forecast forecast Over Over Over Over 7% 7% 7% 7% Around Around 05/3 30.0 73.0 Around 50% Around 05/3 30.0 73.0 50% 0.3% 0.3% (¥35.6) Targets 6% 7% 6% 7% 04/3 Around Around Around Around 25.0 70.0 04/3 Around 52% Around Around Around 25.0 70.0 52% 0.3% 0.3% (¥29.7) 04/3 27.5 68.4 04/3 27.5 68.4 (¥32.7) 6.77% 6.91% 0.31% 0.31% 6.77% 6.91% 52.44% 52.44% et indices for FY2003, except Real net et indices for FY2003, except Real net Results 8.7 8.7 03/3 71.5 03/3 71.5 (¥10.4) 0.11% 2.80% 6.45% 0.11% 2.80% 6.45% 52.43% 52.43% transfers to general reserve for possible loan losses loan for possible transfers to general reserve Tier I ratio Tier I ratio for Consolidated net income) for Consolidated Overhead ratio Overhead ratio Net income ROE Net income ROA Net income ROE Net income ROA Consolidated net income Consolidated net income Real net business income* Real net business income* Management Indices Management Indices Target Indicators in the Management Plan (Consolidated net income per share) per income net (Consolidated Profit Profit Non-consolidated base (except base (except Non-consolidated *Real net business income = Net business income -business income Net = income *Real net business Net Efficiency Efficiency business income. Chiba Bank met all the management targ business income. Chiba Bank met all the management targ Soundness Soundness 7 4.5 1.7 1.7 0.3 4.6 3.8 0.0 4.6 5.1 9.7 4.3 (0.1) (0.8) (1.4) (1.1) (9.9) (10.0) (a) (b) (a)-(b) (Results) (Projection) 4.98.9 2.0 25.7 0.9 30.0 (6.3) (0.0) 0.0 15.175.638.8 16.833.0 74.171.5 37.168.3 18.5 33.2 74.0 68.477.8 36.2 67.2 33.6 41.1 73.0 68.4 71.0 31.018.6 73.0 21.0 40.334.8 50.0 30.9 21.0 (59.2)(13.8) (28.1) (23.0) 1.4 0.0 147.2124.9 142.5 120.8 147.0 122.5 2003/3 2004/3 2005/3 (A) s transfers to general reserve for possible loan losses loan for possible transfers to general reserve business income – income business on bonds Profit/loss Billion> ￥ < Ordinary Profit= ¥50 billion, Net income= ¥30 billion Ordinary Profit= ¥50 billion, Net income= ¥30 billion Earnings Projections for FY 2004 Net interestNet income Fees and commissions Non-personnel expenses Disposal of non-performing loans stocks to related (losses) Gains Retirement benefit expenses (B) *Core net business income = Real net = income *Core net business *Real net business income = Net business income -business income Net = income *Real net business Net Gross business profit Expenses expenses Personnel Real net business income Core net business income loan losse possible for reserve general (from) to transfer Net income business Net Non-recurrent income and losses Ordinary Profit Net income costsCredit (A)+(B) Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed" Structural Reform of Intensification of Profitability 9 Business Business Corporate Corporate Realize Realize Restructuring Restructuring
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100 Weeks of Innovation and Speed”
100 Weeks of Innovation and Speed”
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St M M Seminar Held 03/12 Established Long-term Foreign Currency Time Deposits 03/11 Started Establishing Investment Consulting Corner Establishing Started 03/11 9 9 Risk Limited Investment Trusts Further Further 03/10 Additional Establishment of Loan Plaza & of Loan Center Establishment Additional 03/10 Business 03/12 Implementedin Chiba Pref. Educational Loans in Partnership with Universities Business 9 9 03/10 Active Use of Telephone & Facsimile for of Consumer of Consumer 03/6 Sales of Sales 03/6 reinforcement reinforcement 9 9 03/4 Investment Consulting Principal Measures Undertaken in Principal Measures Undertaken in 9 10 10% 5% 0% 9.9% 1,625.6 Consumer business Consumer Consumer business Consumer 6.8% 1,478.9 additional loan plazas/centers additional loan plazas/centers 8.3% 1,385.1 of housing loans of housing loans 8.8% 1,279.3 th in past 6 years due to th in past 6 years due to Term-end balance Term-end balance 8.1% 1,176.1 Annual growth rate (vs. previous year) previous (vs. Annual growth rate Annual growth rate (vs. previous year) previous (vs. Annual growth rate Steady Increase in Housing Loans 9.0% Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 1,088.2 *figures before partial direct write-offs partial *figures before ） bil. ¥ （ 1,800 1,600 1,400 1,200 1,000 Highest increase in annual grow Highest increase in annual grow 11 135.0 (planned) 170.0 41.3% 46.1 111.7 152.1 Consumer business Consumer Consumer business Consumer 26.4 91.9 161.3 New Housing Loans Housing New 22.2 89.4 130.3 ed on expansion of housing loans ed on expansion of housing loans New housingNew loans whichof newly for built housing whichof handled byLP/LC 15.1 70.3 1H02 2H02 1H03 2H03 1H04 122.3 0 80 60 40 20 200 180 160 140 120 100 (¥bil.) Employees1719203750 Loan Plazas22233 Loan Loan Centers222610 Loan Narita LC Oami LC ● ● open on holidays, mainly focused on equipped with counters with equipped companies housing for customers Yachiyo LC Yachiyo Chiba-Chuo LP ● Loan Centers (LC) Loan Plazas (LP) Plazas Loan ● ● → ● → Makuhari LP Makuhari Ichihara LC Ichihara ● Tsudanuma LC Tsudanuma ● Kashiwa LP Kashiwa Funabashi LC ● ● ● Matsudo LC Ichikawa LC Ichikawa LC ● ● Urayasu Urayasu Increase in Loan Plazas/Centers contribut Increase in Loan Plazas/Centers contribut Locations of Loan Plazas/Centers of Loan Locations Pursuing Convenience via New Channels ● Tokyo LC Tokyo ● 12 Consumer business Consumer Consumer business Consumer coverage of refinances) coverage internet universities customers potential credit increasing customers and new limits for existing customers to expand Cards Mobit coverage of refinances) coverage internet universities customers potential credit increasing customers and new limits for existing customers to expand Cards Mobit - in brought model scoring New - purposes (additional Broadened - to fax and channel sales Shifting - Interest campaign rate discount - with local partnerships Expanding - to of direct advertisements Utilization - customers loan to housing Cross-selling - for applications phone Starting to use - in brought model scoring New - purposes (additional Broadened - to fax and channel sales Shifting - Interest campaign rate discount - with local partnerships Expanding - to of direct advertisements Utilization - customers loan to housing Cross-selling - for applications phone Starting to use Expansion of Education Loans Expansion of Card Loans Increasing Auto Loans Increasing Auto Loans Expansion of Education Loans Expansion of Card Loans (including card loans guaranteed by “Mobit”) (including card loans guaranteed by “Mobit”) guaranteed loans card (including 6.2 2.4 2.0 1.7 30.1 42.6 consumer loans increasing consumer loans increasing 5.2 2.1 2.0 1.7 29.8 41.0 unsecured consumer loans 2.9 1.9 1.9 1.9 29.2 38.0 2.3 2.9 2.1 2.2 29.3 39.0 Highly-profitable unsecured unsecured Highly-profitable Highly-profitable unsecured unsecured Highly-profitable Auto loans loans Education Loans domestic refurbishments for refurnishing & unspecifiedLoans purposes for loans Card 2.9 3.0 2.2 2.4 29.2 00/3 01/3 02/3 03/3 04/3 39.9 Balance of main types Balance *The amount of card loans shown is the total of ‘Card Loan 10, 30, 50, 100, 200, Mobit Cards, JACCS Cards 48 44 40 36 32 28 24 (¥bil.) Enhancement of Unsecured Consumer Loans 13 7.96 19.88 27.85 5.05 19.48 24.54 Consumer business Consumer Consumer business Consumer 1.57 19.11 20.68 1.02 19.93 Trusts and Annuity Insurance Trusts and Annuity Insurance Fee and Commission Income Fee and Commission 0.68 00/3 01/3 02/3 03/3 04/3 F & C on new C & F products services & (Investment Trusts, Annuities, Personal etc.) on conventional C products & F services & (money transfers, fees, ATM etc.) 18.90 18.91 19.58 30 25 20 15 10 (¥bil.) iven by sales of Investment iven by sales of Investment 5.97 2.12 3.84 3.67 1.13 2.53 Trusts and Personal Annuities F & C on Personal Annuities Personal & CF on F & C Investment on Trusts 02/3 03/3 04/3 0.48 0.48 Fees and Commissions on Investment on Investment Fees and Commissions Fees and commissions income dr Steady Increase in Fee-based Business Fees and commissions income dr 7 6 5 4 3 2 1 0 (¥bil.) 14 (concept) ATM Credit Cards Credit (Chibagin JCB & ChibaginDC) Reception Foreign Foreign currency Consumer business Consumer Consumer business Consumer Securities (Chuo Securities) (Chuo Library Entrance Loan Plaza Loan (concept) nding contact points with customers nding contact points with customers Money Plan stic consumer finance plaza. stic consumer finance plaza. customer segments Land Owners Land Salaried persons Salaried Retired persons Company owners & Doctors, Lawyers 9 9 9 9 A multi-functional and futuri A multi-functional A multi-functional and futuri A multi-functional line of business Bank’s group companies Bank’s group weekends. on opening and hours business Bank’s group companies Bank’s group weekends. on opening and hours business Chibagin Consulting Plaza Consulting Chibagin customer for personal branch Specialized business consulting 1. Chiba for functions on consulting Concentrate 2. weekday extending by hours contact Expand From 9:00 to 19:00 Weekdays: From 10:00 to 17:00 Weekends: (Excludingfunctions) certain Chibagin Consulting Plaza Consulting Chibagin customer for personal branch Specialized business consulting 1. Chiba for functions on consulting Concentrate 2. weekday extending by hours contact Expand From 9:00 to 19:00 Weekdays: From 10:00 to 17:00 Weekends: (Excludingfunctions) certain 1st Floor Investment Consulting Loans Housing Floor 2nd Management Property (Private Banking) Integrating group functions and expa Integrating group functions and expa New Style of Branch: “Consulting Plaza” Type Hours Name Type Hours Name Opening Opening Features Opening Opening Features 15 OTC sales ratioOTC (by amount) OTC sales ratioOTC (by account) OTC sales ratioOTC (by amount) OTC sales ratioOTC (by account) 130 Consumer business Consumer Consumer business Consumer ent Trusts Sold ent Trusts Sold Of which OTCOf sales which Of which OTC sales OTC Of which 54.8 Amount of Investm Amount of Amount of Investm Amount of 60.5% 44.1% 123.8 ugh customer satisfying product lines ugh customer satisfying ugh customer satisfying product lines ugh customer satisfying 47.8 55.1% 39.7% 120.0 and improvement of sales skills and improvement of sales skills Sales of Investment Trusts and Personal Annuities Sales of Investment Trusts and Personal 31.6 2H02 1H03 2H03 1H04 47.8% 31.1% 102.9 Strengthening Over-the-Counter Sales thro Strengthening Over-the-Counter Sales thro 80 60 40 20 180 160 140 120 100 (¥bil.) Further Enhancement of Financial Product Sales 16 8% 4% 0% -4% -8% -12% -16% -20% CLO amount Off-balanced Off-balanced CLO amount Off-balanced Off-balanced 20.6 1.4% 2,460.5 Corporate business Corporate business -6.4% 2,425.7 increased channels and new products increased channels and new products -5.8% 2,592.4 -3.5% 2,751.8 Year on year increase rate rate increase year Year on Year on year increase rate rate increase year Year on Increase in Loans to SMEs Balance of loans to Balance of loans Balance of loans to Balance of loans small & medium sized companies small & medium small & medium sized companies small & medium 6.5% Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 2,850.8 *figures before partial direct write-offs partial *figures before Loans to SMEs have turned upward due to Loans to SMEs have turned upward due to (¥bil.) 3,000 2,900 2,800 2,700 2,600 2,500 2,400 2,300 17 1,400 1,200 1,000 800 600 400 200 0 (Number) 42.0 1,163 Corporate business Corporate business in Chiba (Apr-03) Assigned Assigned 20 forces 913 36.0 726 26.4 in Tokyo (Dec-02) Assigned 12 forces New Corporate Customers Customers New Corporate New corporateNew loans(amount) corporate new Number of loans 769 28.4 1H/02 2H/02 1H/03 2H/03 55 50 45 40 35 30 25 20 (¥bil.) Narita ● CBD: Corporate Banking Dept. *Asof March 2004 Yotsukaido Kamatori lizing in new borrowers in new lizing ● ● Chuo & Chiba Chuo CBD ● Goi ● Tsudanuma Ekimae ● ● Kamagaya 20 forces in Chiba 12 forces in Tokyo ● Inage Kashiwa Kashiwa & Kashiwa CBD ● Funabashi CBD Funabashi ● Abiko ● ● Ichikawa ● ● ● Matsudo ● Assigning Specialized Staff to Key Areas ● Shinurayasu Koiwa ● Strengthened development of new customer business, by assigning skilled staff of new customer business, by Strengthened development Strengthened development of new customer business, by assigning skilled staff of new customer business, by Strengthened development Urayasu ● Kanamachi Location of staff specia Location Kinshicho
Akihabara 18 1.5 1.0 0.5 0.0 (¥bil) Amountof New Loans New 3.2 1.3 25.3 2.2 0.8 23.6 Term-end Balance Term-end Balance Corporate business Corporate business 21.9 Product Product Feb. 2004 Feb. Revision of Revision Feb. 2004 Feb. Revision of Revision 0.3 0.3 19.8 Business Loan Business 1.8 1.8 1.8 13.5 Dash 5000 (Term-end Balance) 5000 (Term-end Dash 2.0 0.2 0.2 5.1 03/10 03/11 03/12 04/1 04/2 04/3 Amount of New Loans Amount of New Loans 03/10 03/11 03/12 04/1 04/2 04/3 financial needs by implementing financial needs by financial needs by implementing financial needs by 0 4.0 3.5 3.0 2.5 2.0 1.5 1.0 30 20 10 (¥bil) (¥bil) Balance Term-end scoring method for credit screening scoring method for credit screening (20 stages) (20 (20 stages) (20 ～ ～ Quick response by using by using Quick response for model scoring credit screening no third party No collateral, guarantors required Quick response by using by using Quick response for model scoring credit screening no third party No collateral, guarantors required with Chiba Guaranty Corporation ・ ・ with Chiba Guaranty Corporation Quick response by using by using Quick response no third party No collateral, ・ ・ Quick response by using by using Quick response no third party No collateral, credit scoring model for model scoring credit screening guarantors required credit scoring model for model scoring credit screening guarantors required “Dash 5000” ・ ・ “Dash 5000” ・ ・ Quickly responding to customers’ Quickly responding to customers’ “Business Loan” “Business Loan” Speedy Responses to Customer Needs Character: Since New Oct. 2003 Loan Product, in cooperation Amount:Period: million Up to ¥50 Character: Up to 5 years Feb. 2004 Revision of Product Amount:Period: million Up to ¥30 Interest rate:2.5% Up to 3 years Character: Since New Oct. 2003 Loan Product, in cooperation Amount:Period: million Up to ¥50 Character: Up to 5 years Feb. 2004 Revision of Product Amount:Period: million Up to ¥30 Interest rate:2.5% Up to 3 years 19 CLO Loans: Chiba Bank: 750 cases/ billion ¥20.6 (Total: ¥22.4 billion) Trust Sales: Investment billion ¥4.4 Chiba Bank: billion) ¥4.5 (Total: Corporate business CLO Loans: Chiba Bank: 750 cases/ billion ¥20.6 (Total: ¥22.4 billion) Trust Sales: Investment billion ¥4.4 Chiba Bank: billion) ¥4.5 (Total: Corporate business First regional financial institution to arrange a CLO single-handedly. CLOs were sold to as an investors personal Trust Investment First regional financial institution to arrange a CLO single-handedly. CLOs were sold to as an investors personal Trust Investment ■ ■ ■ ■ ■ ■ ■ ■ Remarks Results Personal Investors Investors (local residents) Investors Personal Investors (local residents) Institutional Institutional trusts ABCP Investment Trust SPC Trust SPC , , the success of “Chiba CLO” as Arranger the success of “Chiba CLO” as Arranger etc etc Banks Banks Chiba CLO Trust Banks Chiba CLO Trust Banks Chiba CLO Chiba Bank Chiba Bank capital flows in the region capital flows in the region Chiba CLO Flow (Outline) Chart Loss compensation Loss Chiba CLO Flow (Outline) Chart Guarantee Chiba City Chiba City Corporation Making progress towards enhancing Corporation Making progress towards enhancing (SMEs) Sales Scheme:to small andloansSecuritize medium-sized companies and sell them as investment trust to residents in Chiba Prefecture. (SMEs) Sales Scheme:to small andloansSecuritize medium-sized companies and sell them as investment trust to residents in Chiba Prefecture. Borrowers Chiba Prefecture Credit Guaranty Credit Borrowers Chiba Prefecture Credit Guaranty Credit Skills Skills Chiba Bank contributed greatly to Chiba Bank contributed greatly to Scheme Planning Origination Power Strong Points Close cooperation with local with local cooperation Close & local governments financial institutions. & know-how skills Use of the in accumulated treasury & overseas sections, and in the section. domestic sales Meeting the financial financial needs the Meeting small medium-sized and of new companies through structure financing Wide individual customer customer Wide individual baseto sell investmenttrusts. ・ ・ ・ Investment Trust Sales Investment Trust ・ 20 Future Plans Plans Future Considering strengthening Chibaits cooperation with agency securities as Bank be to is business deregulated. Reinforce card credit business, ascards credit are corethe at retail business, foreseeing the of Bank potentiality Chiba cards. credit issuing and Expand transactions corresponding reinforce customer leasing needs by cooperation strengthening Bank. Chiba with by profitability Enhance relationshipsstrengthening with local governments whichcomprise 50% ofits sales. ries and their Characteristics Characteristics Characteristics 11 Branches in Chiba Pref. Pref. Chiba in Branches 11 Topof class stock share Pref. Chiba transactions in accounts. active 45,000 Holds The largest Franchisee JCB amongfranchisees owned by banks. regional 300,000 approx. holders: Card 14,000 approx. Associated outlets: 170,000 approx: holders: Card 25,000 Associated outlets: in company leasing largest The year billion ¥45 with Chiba Pref. balance. amount contract end to business leasing Reinforce profit. enlarge seeking customersAggressively local as such Group the outside governments andcompanies, local haswhich ratio brought the of customers Chiba excluding Bank to 85%. top Financial Services’ top Financial Services’ Company Chuo Chuo Securities Chibagin JCB Card Chibagin Card DC Chibagin Leasing Chibagin Computer Service Business Principal Consolidated Subsidia Principal Consolidated Securities Card Credit Leasing System Development by materializing ‘One-s by materializing ‘One-s (Projection) Make continuous expansion in consolidated net income Make continuous expansion in consolidated net income 1.7 -2.1 Providing Integrated Financial Services -0.5 2002 2003 2004 2005 3.0 2.0 1.0 0.0 Net income of Consolidated Subsidiaries (¥bil.) -1.0 -2.0 -3.0 Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed" Building Up a Robust Balance Sheet 22 ) ％ 10 9 8 7 6 5 4 3 2 1 0 ( (projection) ) ) ｓ ｓ 4.5 ｓ 34.1 258.9 110.1 114.7 6.2 NPL ratio to total claims total ratio to NPL 39.4 NPL ratio to total claims total ratio to NPL 361.4 150.3 171.5 After partial direct write-off direct After partial (after partial direct write-off direct (after partial (after partial direct write-off direct (after partial Substandard Doubtful Bankrupt Substantially and Bankrupt conducted conducted Write-off amountWrite-off in case 9.2 (96.3) Write-off amountWrite-off in case (7.6) partial direct write-offs were were direct write-offs partial 528.6 177.0 151.3 200.2 partial direct write-offs were were direct write-offs partial under the Financial Reconstruction Law ｓ 9.4 556.4 152.9 177.7 225.8 Before partial direct write-off direct Before partial ) ) ｓ ｓ 7.8 452.6 148.3 183.6 120.7 NPL ratio projected to reach mid 4% NPL ratiolevel projected to reach mid 4% at end of FY 2004 NPL ratio projected to reach mid 4% NPL ratiolevel projected to reach mid 4% at end of FY 2004 NPLs at end of Fiscal Year 2004 NPL ratio to total claims total ratio to NPL NPL ratio to total claims total ratio to NPL 6.0 28.2 Balance & Proportion of DisclosedBalance Claims 347.2 172.6 146.3 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 (before write-off direct partial (before write-off direct partial 0 bil.) 900 800 700 600 500 400 300 200 100 ￥ 1,000 ( ｓ 23 After 102.5 Net write-off 25.9 partial direct △ decrease 15.8 △ 181.6 Off-balancing Year end △ decrease 99.0 etc. △ 66.8 △ ojection for FY 2004 +79.1 New NPLs Upgrades Collections, ｓ year After 36.1 write-off partial direct Beginning of truction Law ; results and projections 700 650 600 550 500 450 400 350 300 250 200 (¥bil.) wer upgrades and off-balance sheet activities wer upgrades and off-balance sheet activities ｓ 167.1 After Net 36.1 Year end write-off △ partial direct decrease 94.6 write-offs △ 269.2 Partial direct Partial △ decrease 33.6 Off- balancing △ 61.4 etc. △ Aggressively Reducing NPLs 79.6 △ Result for FY 2003 for Result Pr Decreasing NPLs based on Financial Recons NPLs based on Financial Decreasing +102.1 New NPLsNew Upgrades Collections, ｓ year Before 52.9 write-off partial direct Beginning of Reducing NPLs by ¥100 bil. through borro Reducing NPLs by Reducing NPLs by ¥100 bil. through borro Reducing NPLs by 700 650 600 550 500 450 400 350 300 250 200 (¥bil.) 24 20 loans loans 75 36bp to total to total 36bp 36bp to total to total 36bp 21 (projection) 73 30.9 loans loans 68.4 54bp to total to total 54bp 54bp to total to total 54bp 34.8 71.5 77.5 income income business Real net 67.8 business Real net 50.2 70.5 rve for rve losses possible loan 35.2 62.7 t Business Income, and decreasing t Business Income, and decreasing Credit costs Credit Credit costs Credit 110.5 59.8 transfers to general reserve for possible loan losses loan for possible transfers to general reserve 157.2 Net transfers to general rese Net transfers to
65.3 54.1 Real Net Business Income and Credit Costs Income Real Net Business 63.3 94.4 64.1 of non-performing loans + loans non-performing of 34.0 51.6 28.9 Credit costs are within Real Ne Credit costs are within Real Ne 94 95 96 97 98 99 00 01 02 03 04 05 06 40.6 0 Real Income = Net Net business Business -income Net 80 60 40 20 Credit costs = Disposal Credit costs = 180 160 140 120 100 (¥bil.) Credit Costs less than Real Net Business Income 25 -7.0 ％ ％ ％ -8.6 14.9 9.9 4.9 -9.1 ～▲ -9.2 ％～ ％～▲ ％～▲ -10.0 15.0 10.0 5.0 ▲ ▲ ▲ '99 '00 '01 '02 '03 '04 -9.1 Trend of land price in Chiba Ibaraki Proportion to total loans Head Office % 2004.1.1) ： 65% 17% of land price decline improves of land price decline improves West of Chiba-City Other Chiba Based on Land Price of Based on Land (As of MOLT 18% Tokyo Movements in residential land prices by cities Outside Chiba 6.0 (projection) 21.0 8.1 30.9 Credit Costs has lessened as rate Credit Costs has lessened as rate 12.9 Credit Costs Credit 34.8 15.3 77.5 Credit Costs 20.0 (Land price effect) FY00 FY01 FY02 FY03 FY04 50.2 Effect of Land Price Decline Has Lessened Effect of land price decline in Credit Costs 0 80 60 40 20 (¥bil.) Effect of land price decline in price decline in Effect of land Effect of land price decline in price decline in Effect of land 26 FB) 2.5 ･ 2.9 billion billion Fixed ¥2.1 ¥2.1 Floating 2.2 2.9 ¥3.4 trillion less than 3 than yrs) less *Parallel shift (Remaining period:(Remaining 10 basis point value Weighted average life average Weighted TB life(excl. average Weighted 10 basis point value 2.6 2.9 Approximately Approximately 1.6 2.6 Fixed Floating Fixed ¥1.6 trillion 3.8 3.3 less than 3 than yrs) less 00/3 01/3 02/3 03/3 04/3 Housing Loans Corporate Loans Over 3 yrs) (Remaining period:(Remaining Loans by interest rate type (As of March 2004) March (As of type rate interest by Loans (Remaining period: 4 3 2 1 0 Weighted average life of Yen denominated securities denominated Yen life of Weighted average *Remaining periods are based on interest rate maturity (Years) rate rise on profits is limited rate rise on rate rise on profits is limited rate rise on Effect of Interest Rate Rise Negative effect of interest Negative effect of interest 90 percent of new housing loans are fixed rate for the first 3 years. loans of new housing 90 percent rate maturity 3 have interest less than of housing loans 90 percent years. rate maturity 3 have interest less than of corporate loans 90 percent years. monitoring Appropriate daily to as chairman, President with the ALM Committee held monthly, appropriate agree current market trends and and review positions policy. Weighted average life of Yen denominated securities: 2.9 years life of Yen denominated average Weighted → → → → → → Carefully consider Interest rate risks on Bond Investments Promote housing loans with shorter interest rate maturity Build corporate loan portfolio with high sensitivity to market rate changes Organize management system to monitor interest rate risks 27 (Target) 8.0% 1.5% Tier I 3.9% 7.1% Tier II Deferred tax assets 11.0% 21.8% 21.8% Deferred tax Proportion of of Proportion Deferred tax y improving by accumulating profits Proportion of of Proportion y improving by accumulating profits assets in Tier in I assets assets in Tier in I assets 2.5% 3.8% 6.6% 10.4% Consolidated Capital Ratio (BIS Guidelines) 2.4% 99/3 03/3 04/3 06/3 3.3% 5.9% 9.2% Capital Ratio & Tier I steadil Capital Ratio & Tier I steadil 8% 6% 4% 2% 0% 12% 10% Maintain & Improve Sound Financial Conditions Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed" Appendix 1 19 20 21 22 23 24 25 27 28 29 30 32 33 34 35 36 37 38 39
Appendix Financial Reconstruction Financial Law gement Indicators Appendix III: Mana Management Indicators Efficiency Management Profitability Enhance Interest Yields Assets and Liabilities Working Domestic Loans (1)(2) Deposits Domestic Securities Stock Portfolio Personal and Deposits Trusts,Investment Foreign-Currency Annuities the Financial Self-Assessment and Under Disclosed Loans (1)(2) Reconstruction Law by Industry Classified Loans the Claims Under Disclosed Sheets from Balance NPLs Removed the of Disposal Collateral Branch Network of Stockholders Composition of Stockholders Composition in Changes Recent News 3 4 5 6 7 9 10 11 12 13 14 16 17 Table of Contents ing Corporate Governance Corporate ing Appendix I: Strengthen Corporate Governance Strengthening Appendix II: Regional Economy Survey Index (1) Business Conditions Economic Revision of the Headquarters Organization of theRevision Headquarters Revision of the Personnel System (CSR) to the Region Contribution Banking Relationship (2) Loans Conditions Economic Increase (3) Population Conditions Economic Bankruptcies (4) Corporate Conditions Economic Chiba within Institutions of Financial Business Share (1)(2) Prefecture for Chiba Indicators Economic Prefecture in Chiba Price Trends Land Prefecture Chiba Key Data for Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed" Strengthening Corporate Governance 3
Appendix (of which 8 are also Directors) 8 are also (of which Directors) 5 are also (of which (of which 8 are also Directors) 8 are also (of which Directors) 5 are also (of which General Meeting of Stockholders) Meeting of General (including 0 External Auditors*) 0 External (including Auditors*) 2 External (including Auditors*) 2 External (including (including 0 External Auditors*) 0 External (including Auditors*) 2 External (including Auditors*) 2 External (including Past After June 2004 Since June 2003 No. of Directors: 17 No. of Directors: No. of Auditors: 5 No. of Directors:13 Officers:15 No. of Executive No. of Auditors: 5 No. of Directors:11 Officers:14 No. of Executive No. of Auditors: 5 (After authorization at Annual at Annual (After authorization No. of Directors: 17 No. of Directors: No. of Auditors: 5 No. of Directors:13 Officers:15 No. of Executive No. of Auditors: 5 No. of Directors:11 Officers:14 No. of Executive No. of Auditors: 5 *External Auditors are based on the revised Commercial Code the revised on are based Auditors *External 2002. as of May forming the Management Structure ness units such as Sales sible for all branch offices sible for all branch Screening and Management utive Officer System (From April 2003) (From manager to assure the flexibility of flexibility assure the manager to Enhance Corporate Vitality by Re Strengthening Corporate Governance Separate responsibility for business execution from from for business execution responsibility Separate management responsibility. Activate management meetings. and certain headquarters busi Promotion Unit and Credit Separate responsibility for business execution from from for business execution responsibility Separate management responsibility. are officers executive business areas, In major appointed as general and to area suitable for the respective operations strengthen business authority. respon officers are Executive Unit. ¾ ¾ ¾ ¾ ¾ Adoption of the Exec Establishment of a “Board Designated Directors” and “Board of Directors Executive Officers” (From April 2003) ■ ■ 4
Appendix General Secretariat General Public Relations Div. Corporate Planning Div. Corporate Established on Apr. 2003 Credit PlanningCredit Div. Credit PlanningCredit Div. -Audit & Inspection Div. Div. Inspection & -Audit Planning Div. -Corporate Relations Div. -Public Div. Administration -General Secretariat -General Div. -Personnel - -Audit & Inspection Div. Div. Inspection & -Audit Planning Div. -Corporate Relations Div. -Public Div. Administration -General Secretariat -General Div. -Personnel - Corporate Staff Unit Corporate Staff Unit lity for Execution and Results Personnel Div.Personnel Audit & Inspection Div. Inspection Audit & General Administration Div. Administration General Corporate Service Unit Service Corporate -Treasury Operation Div. Planning Div. -Operation Div. System -EDP Corporate Service Unit Service Corporate -Treasury Operation Div. Planning Div. -Operation Div. System -EDP IPS Div. EDP System Div.EDP System Operation Planning Div. Operation Treasury Operation Div. Establishing Clear Accountabi Board of Managing Directors Board of Board of Managing Directors Board of Board of Designated Directors Designated Board of Board of Designated Directors Designated Board of Credit Div. Credit Div. II Credit Div. Credit Screening and Management Unit Div. -Credit II Div. -Credit Div. Supervisory -Credit Credit Screening and Management Unit Div. -Credit II Div. -Credit Div. Supervisory -Credit Business Operation Unit Business Business Operation Unit Business Credit Supervisory Div. Credit Supervisory Revision of the Headquarters Organization Treasury Div. Treasury Established on Apr. 2003 Past Corporate Baking Div. Corporate Direct Channel Div. Direct Present Consumer Banking Div. Consumer Direct Channel Div. Direct Prompter Decision-making and Sales Promotion Unit Div. Coordination -Business Banking Div. -Corporate Banking Div. -Consumer Div. -Treasury - Sales Promotion Unit Div. Coordination -Business Banking Div. -Corporate Banking Div. -Consumer Div. -Treasury - Business Coordination Div. Business Coordination 5
Appendix officers Management Management Manager Manager (at branch offices) (at branch Manager Manager Deputy General Manager General Deputy Deputy General Manager General Deputy Senior Deputy General Manager Senior Deputy General Manager Staff Staff Staff Staff Asst Mgr Asst Asst Mgr Asst General Manager General Manager Staff Staff Staff Staff Manager General Manager A Flatter Organization Manager General Manager Staff Staff Staff Staff Staff Staff Staff Staff Senior Deputy General Manager Asst Mgr Asst Senior Deputy General Manager Asst Mgr Asst Staff Staff Staff Staff Manager Manager Senior Deputy Senior Deputy General Manager General Manager Past Present Staff Staff Staff Staff Deputy General Manager General Deputy Deputy General Manager General Deputy ) of the Bank’s Human Resources th specialized skills (Reduction in positions & titles in (Reduction ＞ Structure to Make the Most Revision of the Personnel System Salaries have been changed to be based on the employee of each contribution and responsibilities or age. of seniority instead is being posts for managerial salary increase The annual for non- salary increases annual and abolished managerial posts are being limited. up decision-making. speeds A flatter organization approach towards timely a more flexible and This allows of staff into account without taking the positioning or age. seniority their to perform recruits system to enable a training Build at an early stage. competently and duties independently Bank, Chiba for training in/outside Receive applications skills so that the Bankfoster staff can with specialized for study & learning. culture & atmosphere create a and ¾ ¾ ¾ ¾ ¾ ¾ A more merit-oriented approach stressing A flatter organization staff wi Fostering bank responsibilities and achievements Effective from April 2003 ＜ ■ ■ ■ 6
Appendix l Financial Institution nued since Apr. 2003) ri beach in June 2003) 2003 & Oct. 2003) tion” (Mar. 2003) Head Office building, etc. uments and use recycled papers and on counters) (conti cate staff to support venture business companies (Dec. 2003) (Dec. staffcate companies to support venture business the Region as a Regiona Venture business started at Chiba University) Venture business Support for Management Problems Chiba Pref. (Mar. Regional Companies” (Feb. 2004), etc. Environment Founda (Clean-up walk at Kujuku s to save energy in the r Early Business Revival ed documents, digitalize doc Contribution to the Region (CSR) Provide support for venture business (Dec. 2003: for (Dec. 2003: venture business Provide support SME Revival Fund “Revival Scheme of Strengthen credit screening classified by industry. classified by industry. screening Allo credit Strengthen Take Positive Actions fo Enhance Support for Establishing Business and Enterprises Enhance Customer Consultation & ・ ・ Voluntary clean-upVoluntary campaign Donation to “Chiba Prefecture Efforts to reduce print Use of “Eco-cars” and effort Tree-planting & flower campaigns (around offices Tree-planting in forests and parks in and parks in forests Tree-planting ・ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ Contribution to the Regional Economy Environmental Activities & Corporate Social Responsibility ■ ■ Corporate Social Responsibility: Contribution to 7
Appendix en no significant en no significant ying to achieve its aims ying to achieve ying to achieve its aims ying to achieve to revitalize SMEs financing’to revitalize and to revitalize SMEs financing’to revitalize and ring the ‘intensive improvement improvement ring the ‘intensive ring the ‘intensive improvement improvement ring the ‘intensive Relationship Baking Functions” There have be There have be has been making steady progress as has been making steady has been making steady progress as has been making steady know us better’. know us better’. . The Bank has been tr . The Bank has been tr lts, Chiba for Action to Promote ‘Committee Bank’s lts, Chiba for Action to Promote ‘Committee Bank’s scheduled, towards being the most trusted financial most trusted being the scheduled, towards scheduled, towards being the most trusted financial most trusted being the scheduled, towards better and let them better and let them ery item in its programs ‘Measures ery item ery item in its programs ‘Measures ery item Banking’ by the end of FY 2004, du onal measures when necessary. Banking’ by the end of FY 2004, du onal measures when necessary. regularly (4 times in total) regularly (4 times in total) Relationship Banking ogram concerning enhancement of undness and improve profitability’, undness and improve profitability’, s or schedules. s or schedules. Progress in “Action Pr Making progress as scheduled All measures are being initiated Holding regular meetings to monitor progress & promote action Making progress as scheduled All measures are being initiated Holding regular meetings to monitor progress & promote action period’. Chiba Bank has been making constant progress, as as progress, constant Chiba Bank has been making ‘Relationship institution regarding Chiba Bank has initiated action on ev ‘Measures to ensure so resu and improve on progress attention careful To keep Banking’Relationship has met planned. The Bank will take additi through the slogan ‘Know our customers changes to plan Chiba Bank has been making constant progress, as as progress, constant Chiba Bank has been making ‘Relationship institution regarding period’. Chiba Bank has initiated action on ev resu and improve on progress attention careful To keep Banking’Relationship has met ‘Measures to ensure so planned. The Bank will take additi through the slogan ‘Know our customers changes to plan ¾ ¾ ¾ ¾ ¾ ¾ Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed" Regional Economy 9 3.9 8.0 0.0 3.5 3.0 5.0 4.6 11.1 13.7 (4.3) (1.3) (8.4) (9.4) (2.7) Appendix (21.4) (11.7) (20.6) Apr.- Forecast 2004 5.0 4.2 5.6 11.6 10.4 18.2 (6.7) (6.8) (8.8) (5.0) (8.7) (4.9) (7.9) (30.8) (28.1) (11.7) (14.8) Jan.-Mar. 3.2 0.0 8.3 0.0 3.9 4.6 11.1 (8.3) (8.8) (4.5) (5.2) (2.6) (20.0) (15.8) (10.0) (20.0) (20.4) Actual Oct.-Dec. 2003 7.2 0.0 0.0 (7.4) (7.0) (9.3) (2.7) (3.9) (15.0) (17.6) (12.5) (10.5) (14.3) (11.6) (15.0) (13.5) (20.0) Jul.-Sep. Totals Trend of BSI Index (By Industry) Trend of BSI Index (By As at: Apr. 2004 Apr. As at: Answers: 779 enterprises surveyed, 350 effective answers Source: Chiba Economy in Center Chiba "BSI survey 2004)" (Jan. to Mar. * Surveyees: Enterprises with a head office and/or an office in Chiba Food Petrochemical Plastics Glass Steel, Non-ferrous metals Metals Machinery Electrical machinery Transportation machines Other manufacturing Construction Transportation Wholesaling Retailing Hotels Services g Recovery in their Businesses Forecast g Recovery in their Businesses Actual Executives in Chiba Pref. Feelin Executives in Chiba Pref. Feelin Business Index Survey Trend of BSI Index (All Industries) BSI: Business Survey Index, is an index of executives' business sentiment and actual condition with a choice from "upward/ increase/improve" ,"no change", and "downward/decrease/worsen". BSI = ( "upward/ increase/improve" - "downward/decrease/worsen" ) x1/2 BSI: Business Survey Index, is an index of executives' business sentiment and actual condition with a choice from "upward/ increase/improve" ,"no change", and "downward/decrease/worsen". BSI = ( "upward/ increase/improve" - "downward/decrease/worsen" ) x1/2 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Economic Conditions (1) Business Survey Index 0 30 20 10 (10) (20) (30) 10
Appendix 04/2 se compared to the month same a year earlier se compared to the month same a year earlier (Compared tomonth the year before) (Compared the same associations (Shinkin & Shinyo kumiai), JA Bank. Div., Policy & Planning Dept. of Chiba Pref. Chiba & Planning Dept. of Policy Div., Rate of Increase/decrease in Loans in Chiba Pref. in Loans Chiba Pref. Rate of Increase/decrease Economic Conditions (2) Loans Made by Chiba Bank with data from Statistics from data Chiba Bank with by Made 00/3 00/9 01/3 01/9 02/3 02/9 03/3 03/9 *Term-end balance of total loans from banks, credit 2.0% 2.0% 1.0% 0.0% Loans in Chiba Prefecture have begun to increa Loans in Chiba Prefecture have begun to increa (1.0%) (2.0%) (3.0%) (4.0%) (5.0%) (6.0%) 11
Appendix 1,865 (thousands)
Osaka:Hokkaido:+1,049 +1,637 Hyogo:Aichi: +851 +708 Posts and Telecommunications
2 6 ,8
1
1 Source: Ministry of Public Management, Home Affairs, (2003) 832 Ibaraki +10,954 Net inflow of population
6 Hyogo 176 7 Fukuoka 110 8 Shiga 72 9 Okinaw a 66 10 Shizuoka 48 9
Nationw ide
1 6 2 6 7 1,792 Inflow/outflow of Population Saitama Tokyo Prefectures Increase Prefectures Increase Kanagawa Top 10 prefectures by Toppopulation by 10 prefectures growth 1Tokyo445 2 Kanagaw a 379 3Aichi255 4 Saitama 242 5 Chiba 196 From 1995 to 2002 inuously increasing in Chiba Pref. ntinuously increasing in Chiba Pref. 2,500 2,000 1,500 1,000 500 0 (Thousand Households) 2,300 6,030 2,170 5,920 2,010 5,790 om "monthly report on population of Chiba") report on om "monthly 1,810 5,550 1,570 5,140 Population households of No. Population & No. of households are cont Population & No. of households are co 1,410 1980 1985 1990 1995 2000 2004/3 4,730 Population & No. of Households in Chiba Pref. Economic Conditions (3) Population Increase 7,000 6,500 6,000 5,500 5,000 4,500 4,000 (Thousands) Source: National census (Mar. 2004 data fr data (Mar. 2004 census Source: National 12
Appendix 100 80 60 40 20 0 (Case) 39 35.1 48 105.2 45 32 107.3 9.6 40 5.0 34 9.1 39 7.8 33 16.0 42 19.0 39 15.2 39 6.4 40 7.3 43 15.1 58 26.4 47 11.6 In Feb. & Mar., Large Bankruptcies occurred Bankruptcies Large & Mar., Feb. In Feb.: Golf course companies (2 cases/¥80 billion) Mar.: City development corporation (1 case/¥75 billion) No loans from Chiba Bank 50 8.1 46 19.8 54 8.8 67 18.0 (02/10) 50 15.1 47 59.5 (02/8) 47 30.6 43 19.3 45 11.5 s are trending downwards in downwards s are trending Chiba Pref. s are trending downwards in downwards s are trending Chiba Pref. 45 49.2 54 22.7 59 55.7 49 39.7 43 40.5 48 29.1 52 19.9 41 9.5 34 15.7 46 12.1 61 24.5 61 Default cases/amounts in Chiba Pref. 16.0 52 Amounts Cases 10.6 48 13.7 41 49.3 47 6.2 43 9.9 54 10.7 56 34.9 31 5.0 47 726.1 47.3 53 50 13.0 Number of cases default and amount Number of cases default and amount 42 4.5 Economic Conditions (4) Corporate Bankruptcies 37 8.7 00/4 00/10 01/4 01/10 02/4 02/10 03/4 03/10 04/4 0 Source: Made by Chiba Bank with data from Shoko Research 80 60 40 20 160 140 120 100 (¥Bil.) 13
Appendix 1.2% Credit 7.0% banks, etc. banks, Credit banks, etc. banks, Bank Bank Chiba Chiba 42.0% 35.9% banks 17.5% 2nd-tier regional banks 14.0% 2nd-tier regional 03/3 ¥11.0 trillion 03/3 ¥11.0 33.1% 03/3 ¥19.2 trillion 03/3 ¥19.2 25.5% City banks City banks banks banks 10.0% 13.8% Regional Regional (excluding (excluding Chiba Bank) Chiba Bank) 2.1% Credit banks, etc. banks, 6.0% Credit banks, etc. banks, Bank Chiba Bank 36.0% Chiba 41.2% banks 17.3% 2nd-tier regional banks 14.6% 2nd-tier regional 31.7% 00/3 ¥17.3 trillion 00/3 ¥17.3 City banks City 26.9% City banks banks 12.5% banks 11.7% Regional Regional (excluding (excluding Chiba Bank) Chiba Bank) Chiba Bank’s Share of Loans Rising Steadily Chiba Bank’s Share of Loans Rising Steadily 2% Credit 0.9% Credit banks, etc. banks, banks, etc. banks, Bank Chiba 37.8% 37% Bank Chiba banks 15.3% 2nd-tier regional 18% banks 2nd-tier regional 29.8% City banks 28% Business Share of Banks Operating within Chiba banks 16.2% 93/3 ¥10.9 trillion93/3 ¥10.9 trillion 00/3 ¥11.8 93/3 ¥13.8 trillion 93/3 ¥13.8 Regional 15% (excluding City banks City banks Chiba Bank) Regional (excluding Chiba Bank) Loans Deposits Source: Made by Chiba Bank with data from Monthly KINYU JOURNAL from Monthly data Chiba Bank with Source: Made by 14
Appendix New Starts Housing ) 2 －－ Ministry Infrastructure Land, and of Transport/Building Control Div. of Chiba Pref. Floor Area Building Construction Starts (Thousand m (Thousand 8,997 19,423 726 4,822 Corporation New Car Chiba Toyota Motor Chiba Toyota Registrations － Pref. Consumer Price Index Statistics Policy Div., & Planning Chiba of Dept. Large users Million KWhMillion 2,985 1,009 Tokyo Electric Power Total Company, Chiba Branch Chiba Company, Electric Power consumption Producers' Inventory Ratio Inventory 2000 = 100 －－－ －－－－－－ Industrial Production Index Production Shipment Total Population As of Oct. 1 2000 = 100 (Total) Statistics Div., Policy & Planning Dept. of Chiba Pref. 1993199419951996 5,748,9191997 5,789,2751998 5,797,7821999 5,826,019 94.02000 5,855,963 96.62001 100.0 5,888,8802002 104.8 5,919,0312003 91.5 *5,926,349 110.0 96.7 100.0 5,963,514 97.7 106.0 6,001,020 96.4 122.1 100.0 112.6 6,028,315 103.6 100.0 94.9 97.6 29,362 99.2 93.6 100.0 97.2 31,745 32,664 93.8 92.9 11,062 33,081 110.8 96.5 100.0 11,620 12,073 33,929 100.5 95.0 93.3 11,986 34,099 114.1 99.3 35,240 11,338 34,492 100.0 106.2 99.9 11,591 104.4 225,454 35,345 11,588 98.9 233,604 11,355 223,369 100.5 35,559 35,820 10,618 242,480 101.1 11,532 232,780 100.0 10,916 9,636 100.6 11,409 195,718 11,920 84,326 10,426 151,837 149,093 87,278 71,729 9,985 99.1 98.1 73,805 9,211 146,967 97.5 8,668 66,649 8,527 150,818 61,187 145,103 59,652 58,257 8,594 8,148 7,582 58,456 57,669 52,934 Economic Indicators for Chiba Prefecture (1) Source 2003/032003/042003/052003/06 6,002,7042003/07 5,999,4612003/08 6,015,1062003/09 6,017,865 94.52003/10 6,020,313 91.82003/11 6,021,872 93.92003/12 6,025,698 93.3 92.02004/01 6,028,315 92.8 91.22004/02 6,030,959 93.0 93.92004/03 6,033,003 89.2 102.4 94.52004/04 6,033,266 93.6 104.4 93.6 6,032,934 94.4 103.7 94.3 6,032,503 90.6 2,994 103.7 91.2 6,028,649 93.5 2,942 103.6 94.4 94.8 2,865 105.4 94.6 1,002 2,796 107.0 91.9 2,924 103.9 96.2 996 1,057 3,119 106.2 95.6 1,051 3,123 109.5 97.5 2,869 101.1 994 97.7 2,814 101.6 98.0 996 20,301 2,907 97.6 985 3,249 997 11,125 9,389 97.4 1,005 3,123 12,369 97.5 485 975 97.5 13,245 961 97.6 510 97.0 630 928 8,409 3,737 566 12,918 97.2 11,089 10,638 620 97.2 4,116 4,738 97.0 4,421 643 10,772 619 10,314 4,529 817 690 12,684 4,317 4,496 725 5,673 545 4,846 494 4,446 4,538 4,122 For further information, please visit the web-site of Chibagin Research Institute (http://www.crinet.co.jp) Economic Indicators for Chiba Prefecture Chiba for Indicators Economic *Source: Population Census FY 2000 Census Population FY *Source: 15
Appendix Manufacturing Real Wage Index (No. of(No. 30 or employees: more) All industriesAll 2000 = 100 Manufacturing －－－－ (No. of(No. 30 or employees: more) Regular Employment Index Statistics Div., Policy & Planning Dept. of & Chiba Pref. Policy Div., Statistics All industries All Effective opening rate openings Effective job Labor Market －－－－－－－ Chiba Labor Bureau Effective labor supply mil.) ￥ million) ￥ ( Total Debt Total 39 35,167 No. of Tokyo Shoko Research, Shoko Tokyo Ltd., Chiba Branch (Companies headquarteredin (Companies Business Bankruptcies Chiba wChiba debt over total ith companies million) －－ ￥ ( Export Import (Chiba Port & Kisarazu & Port) Port (Chiba Chiba Customs Branch Trade Customs clearance Trade Customs Economic Indicators for Chiba Prefecture (2) 1993199419951996 622,1121997 568,268 1,553,5471998 610,724 1,546,5481999 685,129 1,687,9932000 884,134 2,096,700 399 1,059,0852001 2,220,297 396 1,680,4812002 920,266 116,163 5182003 901,210 1,649,288 428 82,841 874,106 135,077 2,121,206 57,633 495 1,125,808 638 174,619 2,157,092 2,163,284 67,262 987,012 142,376 72,018 453 38,024 322,846 2,505,248 74,856 560 33,842 145,319 77,654 574 34,526 90,871 606 889,791 41,034 0.67 247,651 98,679 504 42,511 350,456 38,912 0.50 97,444 0.48 100.6 147,524 104,905 97,106 37,207 0.55 46,475 0.55 100.3 0.43 100.0 98,389 49,037 52,738 100.5 110.1 0.38 108.6 105.8 54,313 0.48 97.5 100.0 108.3 0.47 0.54 128.4 98.2 123.4 117.4 100.0 107.3 100.0 0.55 107.1 100.2 101.1 99.4 104.1 102.8 103.5 100.0 110.2 100.0 104.8 100.2 97.1 101.6 94.9 100.0 92.7 95.1 100.8 102.9 99.2 95.7 100.0 100.7 100.4 100.1 102.8 Source 2004/04 2003/032003/042003/052003/06 94,6652003/07 82,975 R223,3312003/08 85,373 R206,1152003/09 78,236 R202,8632003/10 84,047 R189,757 582003/11 72,634 R228,499 432003/12 98,571 R190,459 402004/01 75,942 26,417 R205,111 392004/02 69,970 15,195 R200,297 392004/03 78,580 R202,618 97,983 7,341 106,271 107,369 42 R237,709 6,481 P227,641 33 82,695 15,237 107,387 54,139 102,679 39 54,836 19,003 105,111 P188,265 104,106 P234,237 34 16,037 52,345 40 98,458 51,717 0.53 7,806 32 53,398 0.54 98,054 9,197 45 53,252 0.54 5,046 48 98,672 102.5 9,674 56,824 0.54 104.2 91,468 107,324 0.54 105,266 84,048 59,598 104.2 84,836 0.55 101.0 57,030 85,974 105.0 102.3 0.57 91,029 106.0 55,166 57,334 102.2 0.59 105.7 58,856 61,214 102.7 87.2 0.59 105.6 101.9 82.3 0.62 106.3 0.63 101.4 82.5 0.63 147.7 106.3 0.64 100.3 81.6 114.8 83.6 107.5 106.9 99.9 107.1 82.4 87.3 153.3 117.0 99.5 82.1 99.5 97.4 82.4 96.4 82.8 87.7 82.1 187.5 84.9 83.2 81.2 91.6 198.2 92.6 84.2 Economic Indicators for Chiba Prefecture Chiba for Indicators Economic Note: FiguresNote: for Effective labor supply Effective and openings job are for the average each month. 16
Appendix (8.9) (7.0) (8.6) (11.0) (9.1) Residential Commercial (13.3) (9.2) (14.2) (15.8) (10.0) (9.1) (14.9) (4.8) (12.6) (4.9) (14.5) Data from MLIT Data Asof Jan. 1 96 97 98 99 00 01 02 03 04 (7.8) Published Land Price (Chiba Pref.) Price Land Published (17.9) (%) 0.0 (5.0) (10.0) (15.0) (20.0) steadily improving since 2000 steadily improving since 2000 (9.5) (11.8) (13.4) (10.4) Residential Commercial (14.6) (10.3) (15.5) (10.8) (15.3) (10.2) Land price trend has been Land price trend has been (6.8) (12.9) (4.4) (12.7) Land Price Trends in Chiba Prefecture Land Price Survey (Chiba Pref.) 96 97 98 99 00 01 02 03 Data from Chiba Pref. from Chiba Data 1 Jul. of As (6.8) (16.3) (Year) (Year) 0.0 (%) (5.0) (10.0) (15.0) (20.0) 17
Appendix Tokyo Osaka Income ¥26 trillion ¥51 trillion ¥27 trillion Kanagawa Prefectural ¥18 trillion (ranked 6th nationwide) starts Tokyo Osaka 54,000 98,000 87,000 175,000 Number of Kanagawa new housing (ranked 6th nationwide) Tokyo Osaka ons, Statistic Bureau (As of Oct. 2002) Oct. Bureau (As of ons, Statistic Savings ¥46 trillion ¥56 trillion Balance of Kanagawa ¥30 trillion ¥102 trillion (ranked 7th nationwide) 2 2 2 2 binet Office (FY 2001) (FY Office binet Niigata Liveable land area Hokkaido 4,127km 4,563km 3,450km 26,753km Fukushima (ranked 6th nationwide) nancial Services Information (As of Mar. 2003) Mar. (As of Information Services nancial Home Affairs, Posts and Telecommunicati Posts and Home Affairs, Research Institute, Ca Institute, Research Land, Infrastructure and Transport (FY 2002) (FY Transport and Land, Infrastructure Tokyo Osaka Population Kanagawa 8.63 million 8.82 million 6.00 million (ranked 6th nationwide) 12.22 million Key Data for Chiba Prefecture No. 1 No. 2 No. 3 Chiba nationwide nationwide nationwide Number of new housing starts: Ministry of Ministry housing starts: Number of new Social Economic and Income: Prefectural Sources: Sources: of Public Management, Ministry Population: Council for Fi Central The Balance of Savings: Creating New Value Medium-term Management Plan "100 Weeks of Innovation and Speed" Management Indicators 19
Appendix Bil.) ￥ ( bonds + Expenses) + bonds fer to general reserve for possible loan losses possible reserve for fer to general – on Gains/losses erage customers’erage and guarantees) acceptances for liabilities s income + Net transfer + Net s income losses loan for possible to general reserve + Net transfer Management Indicators 59.8 29.7 62.7 32.5 70.5 34.5 67.8 36.8 71.5 33.5 68.4 (49.3) 11.1 18.3 7.6 13.1 5.9 (25.4) 9.1 8.7 11.7 27.5 99/3 99/9 00/3 00/9 01/3 01/9 02/3 02/9 03/3 03/9 04/3 (0.7%) 0.27% 0.21% 0.18% 0.16% 0.10% (0.3%) 0.23% 0.11% 0.29% 0.31% except for Consolidated net income. except for (17.3%) 6.53% 5.11% 4.19% 3.58% 2.39% (8.1%) 5.61% 2.80% 6.74% 6.77% 58.79% 57.01% 55.62% 54.87% 53.48% 53.03% 53.80% 52.09% 52.43% 52.62% 52.44% *2 *1 *5 *4 *3 *2 Real net business income = Net busines = income *2 Real net business *1 Above figures are non-consolidated are non-consolidated figures *1 Above *3 ROA = Net income / Average total assets (excluding Av total assets (excluding / Average Net income *3 ROA = *4 ROE = Net income / Average Stockholders’ / Average Net income *4 ROE = equity trans + Net business income / (Net = Expenses ratio *5 Overhead Consolidated net income Overhead ratio ROE ROE Real net business income ROA ROA Capital ratio (BIS guidelines)(BIS ratio 9.08% Capital 9.48% 9.53% 10.22% 10.45% 10.18% 10.06% 10.39% 10.24% 10.52% 10.83% ratio I Tier 5.78% 6.10% 6.24% 6.34% 6.99% 7.05% 6.35% 6.63% 6.45% 6.71% 6.91% 20
Appendix 60% 55% 50% 45% 40% 35% 30% 3.6 74.1 33.2 37.1 52.4% 3.7 75.6 33.0 38.8 52.4% 4.1 77.8 33.2 40.4 53.8% Tax OHR 78 4.2 32.5 41.2 53.5% Personnel expenses Personnel Non-personnel expenses Non-personnel Low Cost Operation Low Cost Operation 4.1 81.4 34.9 42.3 55.6% Overhead Ratio & Expenses 4.6 99/3 00/3 01/3 02/3 03/3 04/3 83.8 36.2 42.9 58.8% 80 60 40 20 120 100 (¥Bil.) 3,498 3,623 3,760 th fewer employees th fewer employees Management Efficiency 3,892 (full time employees only) (full time employees 4,024 Total No. of Employees 99/3 00/3 01/3 02/3 03/3 04/3 4,153 Efficient Operation wi Efficient Operation wi (persons) 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 21
Appendix Total RACC (100%) RACC Capital cost Credit cost Expenses Funding cost ¥5.1 trillion ¥5.1 Actual yield of lending of Actual yield 0.11% 1.64% 0.29% 0.15% (2%) ¥0.1 trillion ¥0.1 Consumer Loans 5.50% 3.33% 3.33% Insurance fee included in expenses for housing loans (30%) 0.22% 0.42% 0.59% 0.97% 0.02% 0.97% ¥1.5 trillion ¥1.5 Housing Loans 2.22% s into Consumer Business s into Consumer Business (53%) 0.23% 1.19% 0.57% 0.26% ¥2.7 trillion ¥2.7 Return After Capital Cost (RACC) Cost Capital After Return by business segment for FY 2003 by 0.11% 0.11% Small and medium-sized Small and Enhance Profitability ost C Shift Management Resource Shift Management Resource 2.36% apital C fter A (15%) 0.41% 1.28% 0.24% 0.19% 0.8 trillion enterprises eturn Large & midsized & midsized Large R 1.15% 0.98% 0.98% ▲ ▲ RACC = loans Average Average balance of balance of (Proportion) 22
Appendix
0.98% 2.33% 2.33% 1.68% 1.00% 2.09% 1.99% 0.69% 0.99% 0.02% 1.01% 0.62% 2.01% 2.11% 1.70% 0.94% 2.37% 2.35% 1.72% 1.04% 2.10% 2.00% 0.69% 0.99% 0.02% 1.01% 0.66% 2.02% 2.12% 1.70% 1.13% 2.47% 2.41% 1.79% 1.09% 2.16% 2.06% 0.70% 1.03% 0.03% 1.07% 0.77% 2.09% 2.19% 1.77% 1.14% 2.56% 2.43% 1.85% 1.13% 2.18% 2.08% 0.73% 1.01% 0.04% 1.06% 0.88% 2.12% 2.22% 1.79% 1.25% 2.59% 2.46% 1.93% 1.17% 2.22% 2.15% 0.72% 1.10% 0.09% 1.19% 0.79% 2.24% 2.31% 1.91% 1.39% 2.75% 2.49% 1.92% 1.28% 2.24% 2.19% 0.75% 1.09% 0.11% 1.20% 0.89% 2.30% 2.35% 1.95% 2.22% 2.85% 2.56% 2.03% 1.43% 2.23% 2.22% 0.77% 1.15% 0.18% 1.34% 1.15% 2.40% 2.41% 2.11% - - 00/300/901/301/902/302/903/303/904/3 00/300/901/301/902/302/903/303/904/3 2.21% 2.23% 2.85% 2.57% 2.01% 1.50% - 2.20% 0.74% 1.15% 0.18% 1.37% 1.31% 2.38% - 2.11% Interest Yields (excluding loans to MOF) Expense ratio 1.23% Average yieldAverage on deposits and NCD 0.24% Average yieldAverage on loans and bills discounted Average yieldAverage on securities 1.90% Average yieldAverage on loans and bills discounted 2.45% (excluding loans to MOF) Difference between average yieldDifference between average on loans and deposits Public sectorsPublic 2.47% Consumer loans 2.92% Smallmedium-sized and companies 2.53% Mid-sized companiesMid-sized 2.05% Contract Rate by Borrowers Type of companiesMajor 1.40% Average interestAverage rate spread 0.76% Average yieldAverage on interest bearing liabilities 1.53% Average yieldAverage on interest earning assets 2.29% Domestic Operations yieldDifference between average on loans and deposits 23
Appendix Bil.) Bil.) ￥ ￥ ( ( (est.) (est.) FY 04 FY 04 FY FY 02FY 03 FY 02FY 03 FY (est.) (est.) FY 04 FY 04 FY Average balanceAverage Interest yield balanceAverage Interest yield 5 5,734.6 5,791.7 2.09% 2.01% 2.00% 0 5,690.6 5,749.6 2.09% 2.01% 2.00% FY 02FY 03 FY 02FY 03 FY Working Assets and Liabilities Loans and bills discounted 5,760. Loans and bills discounted 5,697. SecuritiesDepositsBorrowed money 1,256.5 129.1 1,309.5 7,171.2Securities 1,428.8 130.6 7,222.5Deposits 7,428.6 1.29% 112.5Borrowed money 1.15% 0.07% 2.07% 1.11% 0.04% 1.88% 982.6 0.03% 77.9 1.94% 6,980.2 1,054.5 7,046.7 1,176.4 79.9 7,235.8 0.77% 76.8 0.03% 0.62% 2.01% 0.02% 0.57% 1.71% 0.01% 1.76% Overall Domestic Operations Interest-bearing Assets 7,472.5 7,400.5 7,501.4 1.85%Interest-bearing Assets 1.77% 1.77% 7,184.8 7,125.4 7,209.1 1.77% 1.70% 1.69% Interest-bearing Liabilities 7,503.6 7,570.3 7,797.6 0.18%Interest-bearing Liabilities 0.14% 0.13% 7,217.9 7,299.1 7,523.4 0.06% 0.03% 0.02% 24
Appendix (￥Bil.) (￥Bil.) Af ter partial Af ter partial direct write-of f s direct write-of f s 04/3 04/3 04/3 04/3 Bef ore partial Bef ore partial direct write-of f s direct write-of f s 03/9 01/9 02/3 02/9 03/3 Domestic Loans 00/3 00/9 01/3 00/3 00/9 01/3 01/9 02/3 02/9 03/3 03/9 4,490.9 4,489.8 4,441.3 4,416.9 4,365.0 4,301.9 4,269.3 4,353.3 4,425.1 4,338.8 2,850.8 2,844.5 2,751.8 2,696.7 2,592.4 2,496.7 2,425.7 2,446.5 2,460.5 2,383.6 Small and medium-sized companies medium-sized and Small Consumer loans 1,392.7 1,430.7 1,473.5 1,504.7 1,554.3 1,587.1 1,632.9 1,699.3 1,766.4 1,761.5 Small and medium-sized companies Major companiesMajor Mid-sized companies 550.0 204.4 541.0 218.8 551.2 208.9 517.8 208.5 540.6 197.3 539.9 184.5 530.2 175.2 Chiba PrefectureIn 529.7 177.9Others 527.8 174.9 524.4 170.2 4,874.8 4,875.9 4,834.3 4,775.2 4,734.7 4,682.7 4,639.8 4,695.9 722.1 4,718.9 761.3 4,638.3 736.4 910.8 994.3 978.7 948.8 1,053.6 1,037.7 1,024.0 Public sector 351.5 387.5 369.2 542.8 626.0 634.9 613.8 688.5 628.7 628.7 Domestic loans 5,597.0 5,637.3 5,570.8 5,686.0 5,729.0 5,661.4 5,588.6 5,749.6 5,756.7 5,662.3 Domestic loans 5,597.0 5,637.3 5,570.8 5,686.0 5,729.0 5,661.4 5,588.6 5,749.6 5,756.7 5,662.3 25
Appendix ( ): Increase/decrease (+115.9 billion) (+115.9 (+120.8 billion) (+120.8 (+¥62.5 billion)(+¥62.5 ¥2,618.8 billion ¥5,511.3 billion auto-salary transfer auto-salary Personal Deposits Personal As of Mar. 2004 Accounts withAccounts auto- pension-transfer and ¥7,177.0 billion Domestic Deposits d to increase steadily d to increase steadily the personal customer base the personal customer base Chiba Bank Deposit Balances at Domestic Deposits (1) Domestic deposits continue Domestic Domestic deposits continue Domestic thanks to the expansion of thanks to the expansion of ¥2,565.2 billion¥2,565.2 ¥5,395.3 billion ¥5,395.3 Personal Deposits ¥7,056.2 billion auto-salary transfer auto-salary As of Mar. 2003 Accounts withAccounts auto- pension-transfer and Domestic Deposits (The number of pension payment accounts increased to 302K (as of Mar. 2004) from 284K(as of Mar. 2003) and 2003) and of Mar. from 284K(as (as of Mar. 2004) to 302K increased payment accounts of pension (The number from 755K (as of Mar. 2003)) of Mar. 2004) to 776K (as increased accounts receipt of payroll the number 26
Appendix Bil) Bil) ￥ ￥ ( ( 2000/3 2000/9 2001/3 2001/9 2002/3 2002/9 2003/3 2003/9 2004/3 2000/3 2000/9 2001/3 2001/9 2002/3 2002/9 2003/3 2003/9 2004/3 Domestic Deposits (2) PersonalCorporateNon-profit organizationsFinancial institutionsNational and local governmentBank Japan of PersonalCorporate 355.3 79.5Non-profit organizationsFinancial institutions 4,779.6 319.8National and local 55.0 government 1,179.6 148.3Bank Japan of 4,855.4 1,184.2 309.3 35.4Personal 57.3 4,994.1 1,191.6 42.9Corporate 225.2 271.5 5,155.3 32.9Non-profit organizations 152.5 1,161.7 41.4Financial institutions 11.2 1,843.2 5,291.1 109.0 468.7National and local 31.3 government 1,166.8 60.3 107.6 669.3 35.8 1,914.2 5,324.7Personal 1,162.8 192.7 371.9 25.7 22.0Corporate 138.9 2,031.6 5,395.3 676.5 23.6 42.9 1,157.6Non-profit organizations 29.9 122.2 117.0 366.7 2,157.6 46.6 5,480.9Financial 10.9 institutions 34.3 715.7 1,174.7 87.5National and local government 75.6 11.2 2,918.3 2,526.3 5,511.3 187.9 25.7 424.9 282.9 1,180.1 8.8 88.0 35.3 506.5 700.8 152.7 33.7 2,920.6 2,655.1 86.2 308.8 345.8 25.7 97.1 23.3 2,943.1 2,787.1 504.6 831.8 33.7 107.0 12.1 8.3 28.2 7.8 118.3 0.0 307.1 149.0 2,971.2 2,884.1 10.9 30.4 472.1 868.3 14.9 76.3 25.4 18.0 2,720.8 2,957.0 7.1 24.5 252.7 22.8 67.8 0.0 43.6 3.6 35.3 456.0 883.7 20.3 2,623.1 21.4 321.4 5.0 132.5 20.6 8.9 22.3 19.4 2.0 2,570.1 330.3 903.4 63.0 12.1 0.0 3.0 20.5 2,547.3 87.6 19.2 12.3 29.6 0.0 289.5 913.2 5.4 1.7 59.4 25.4 0.5 2,493.0 3.6 19.6 26.3 266.9 19.4 0.0 30.1 0.2 1.2 8.9 0.0 4.9 20.1 261.1 43.9 24.3 0.0 0.0 12.3 1.0 257.7 19.3 0.0 4.5 46.3 0.0 0.0 0.8 38.0 0.0 4.9 0.0 0.0 0.9 49.4 0.0 6.9 0.0 0.0 61.2 10.1 0.0 0.0 9.0 Liquid depositsTime deposits 2,845.0 2,793.4 3,023.7Foreign currency deposits 3,095.9 3,932.9 3,602.6 3,987.5 3,709.7 44.3 4,093.8 3,553.4 4,211.4 3,654.8 51.5 4,311.2 3,118.0 42.3 2,997.5 2,917.2 37.2 2,859.7 2,795.4 48.6 51.3 45.0 59.6 70.3 in ChibaPrefecture Others 6,245.7 6,320.1 6,384.8 6,567.4 246.4 6,876.2 234.6 6,827.4 234.7 6,840.8 6,911.8 220.6 6,973.1 223.3 208.9 215.3 219.0 203.9 Domestic deposits 6,492.1 6,554.7 6,619.5 6,788.0 7,099.6 7,036.4 7,056.2 7,130.8 7,177.0 Domestic deposits 6,492.1 6,554.7 6,619.5 6,788.0 7,099.6 7,036.4 7,056.2 7,130.8 7,177.0 27
Appendix ) ) (5.3) +66.5 +64.8 JGB 41% Change ) ) (1.2) 49.2 46.6 Mar. 04 10% bonds Local gov. (4.0) (15.6) (19.9) Mar. 03 1% ¥852.8 bil. ¥852.8 Others 5% Corporates Limited Credit Risks Limited Credit Risks 29% (¥Billion) Yen Denominated Bonds by Issuers 14% Bonds Stocks Financial corps institutions Effect on Unrealized Gains/Losses Other securities Other Municipal Effect on Unrealized Gains/Losses The unrealized losses on securities in FY 2003 (due (due FY 2003 in securities losses on The unrealized by than offset were more rates) market rise in the to stocks. gains on in unrealized increase the 2.9 2.5 billion billion 2.9 2.2 Bond Portfolio ¥2.1 ¥2.1 10 basis point value 10 basis point 10 basis point value 10 basis point *in the case of parallel shift 2.9 2.6 Approximately Approximately Average life Average life (excluding G.B.) Short-term 2.6 1.6 Average life of YenAverage Bonds 3.8 3.3 00/3 01/3 02/3 03/3 04/3 Limited Interest Rate Risks in Securities Limited Limited Interest Rate Risks in Securities 4 3 2 1 0 (Year) 28
Appendix 100% 80% 60% 40% 20% 0% 46.6 43.4% 145.5 192.1 (19.9) 48.7% 148.7 128.8 Amount of stocks held (on B/S) (on held stocks of Amount value booked Actual gains/losses Unrealized I Tier to held stocks of amount of Ratio 8.5 52.8% 163.5 172.0 10.6 Amount of Stocks Held and Tier I Ratio and of Stocks Held Amount 01/3 02/3 03/3 04/3 58.8% 199.9 210.6 Amount of Stocks Held (Term-end Balance) Amount of Stocks Held (Term-end Balance) 0 50 (50) (¥Bil.) 400 350 300 250 200 150 100 Stock Portfolio 0.6 2.6 41.4 7.0 38.8 15.6 Yearly amount Yearly 31.8 5.0 33.8 26.7 5.1 10.2 Amount of Stocks Sold Amount Cumulative amount Reduction in Stocks Held Devaluation Losses on Securities Devaluation Reduction in Stocks Held 16.4 2.9 8.0 FY99 FY00 FY01 FY02 FY03 FY99 FY00 FY01 FY02 FY03 0 0 (¥Bil.) 40 30 20 10 50 40 30 20 10 (¥Bil.) 29
Appendix Bil.) Bil.) Bil.) ￥ ￥ ￥ ( ( ( cy Deposits and Personal Annuities Bond fundsStock fundsBond fundsStock funds 80.0Non-financial customers 3.9 100.6Personal 21,467Corporate 93.7 24,904 6.3 2,693Non-profit organization 23,276 21.6 113.9Financial institutions 6,096 25,278 9.8 and localNational governments 17,425 23.7 86.3 19,796 27,924 11.6 17,064 7.8 22.9 36,357 72.1 0.0 13,653 53,156 22.0 11,220 22.8 31.8 14.9 53.4 annuitiesVariable 65,176 18.0 11,179 0.0 78.0Fixed annuities 83,026 3.6 19.4 48.5 40.6 20.6 5.0 97,431 121.8 0.0 51.3 3.0 36.7 5.4 19.2 181.6 0.0 0.5 228.7 44.9 26.3 3.6 0.2 0.0 59.5 - 0.0 43.9 4.9 0.0 0.0 70.2 - 46.3 0.0 4.5 - 0.0 0.0 38.0 0.0 - 4.9 0.0 49.4 0.0 - 0.0 6.9 0.0 61.2 - 0.0 0.0 - 10.1 0.0 - 9.0 - - - - 6.2 42.9 11.4 81.3 22.8 131.9 Term-end ofInvestment trustsNumber of investment trusts 24,160 2000/3 83.9 31,000 2000/9Term-end of 40,701 106.8 2001/3Foreign currency deposits 53,202 2001/9 103.5 56,153 2002/3 70,220 125.5 2002/9 78,829 2003/3 108.3 44.3 94,246 2003/9 108,610 150.1 51.5 2004/3 2000/3 175.2 2000/9 42.3 222.3 2001/3Term-end of 2001/9 37.2Personal annuities 265.5 2002/3 48.6 2002/9 2003/3 51.3 2003/9 2004/3 45.0 2000/3 59.6 2000/9 - 2001/3 70.3 2001/9 2002/3 - 2002/9 2003/3 2003/9 - 2004/3 - - - 49.2 92.8 154.7 Investment Trusts, Foreign-Curren 30
Appendix Bil.) Bil.) ￥ ( ￥ ( Construction Law (Non-consolidated) 347.2 464.1 452.6 438.4 556.4 529.4 528.6 477.1 361.4 00/3 00/9 01/3 01/9 02/3 02/9 03/35.98% 7.91% 03/94.89% 7.80% 6.39% 04/3 7.43% 6.10% 9.37% 5.66% 9.05% 7.72% 9.17% 7.25% 8.06% 7.62% 7.73% 6.66% 6.23% 146.3 175.2 183.6 182.6 177.7 176.0 151.3 132.3 39.4 00/3 00/9 01/3 01/9 02/3 02/9 03/3 03/9 04/3 Self-Assessment Results (Non-consolidated) are after partial direct write-offs. are after partial Disclosed Claims Under the Financial Assets Requiring CautionPotentially Bankrupt Assets 1,277.7 1,185.9 1,071.2 172.6 994.0 163.3 907.3 148.3 848.3 134.2 869.3 152.9 946.8 134.6 893.9 177.0 175.9 171.5 Bankrupt and Effectively Bankrupt Assets Bankrupt and Effectively Bankrupt Bankrupt and Substantially Bankrupt Claims Bankrupt and Substantially Bankrupt 146.3 ClaimsDoubtful 175.2 ClaimsSubstandard 183.6 182.6 177.7 176.0 151.3 132.3 39.4 172.6 28.2 163.3 125.6 148.3 120.7 134.2 121.4 152.9 225.8 134.6 218.7 177.0 200.2 175.9 168.7 171.5 150.3 *Including loans with no debtor classification. with loans *Including claims disclosed Mar. 2004, *For as of AssetsRequiring Caution worse or 1,596.7 1,524.5 1,403.1 1,311.0 1,237.9 1,159.0 1,197.7 1,255.1 1,104.9 Normal Assets*Total 4,206.4 4,341.9 4,396.0 4,586.7 4,695.9 4,685.8 4,564.0 4,657.5 5,803.1 4,695.9 5,866.4 5,799.2 5,897.7 5,933.9 5,844.8 5,761.7 5,912.7 5,800.8 DisclosedClaims under the Financial Reconstruction Law Proportion to total claims(bef ore partial directwrite-of f s) write-offs) direct partial (after claims total to Proportion Normal ClaimsTotal 5,455.9 5,402.2 5,346.5 5,459.3 5,377.4 5,315.4 5,233.1 5,435.6 5,439.4 5,803.1 5,866.4 5,799.2 5,897.7 5,933.9 5,844.8 5,761.7 5,912.7 5,800.8 Loans Disclosed Under Self-Assessment and the Financial Reconstruction Law (1) 31
Appendix
(¥Bill.) Total Total 5,800.8 5,800.8
795.3 4,695.9 4,982.0 4,695.9 4,695.9 4,695.9 *Normal
Normal 5,439.4 Other 702.3 180.2 522.0 946.8 946.8 23.4 18.4 25.4 191.6 173.1 150.3 Requiring Caution 63.8% Substandard Substandard - 77.6 70.4 23.4 57.9 171.5 171.5 Claims 86.3% Doubtful Bankrupt Potentially - - 8.3 8.3 30.1 30.1 21.8 Bankrupt Effectively Effectively 39.4 4.4 35.0 100.0%
- - Substantially Bankrupt and 9.3 1.4 7.8 Bankrupt Disclosed Claims under the Financial Reconstruction Law Reconstruction the Financial under Claims Disclosed Bankrupt 195.7 361.4 outstanding
I II Classification of III IV 78.4% obligors and amounts obligors and amounts Classification of Reserves 87.8 Reserves Coverage ratio ratio Coverage
Coverage collateral by obligors and amounts outstanding and guarantees Classification type by
Reconstruction Law Law Reconstruction
under the Financial Financial the under Self-Assessment Disclosed Claims Claims Disclosed Self-Assessment Results and Non-consolidated * Including assets with no classification of debtors. debtors. of classification no assets with * Including Loans Disclosed Under Self-Assessment and the Financial Reconstruction Law (2) 32
Appendix Bil.) Bil.) ￥ ￥ ( ( Change Change 105.2 79.6 7.1% 2003/3 2004/3 2003/3 2004/3 10 Total 302.0 279.9 (7.3%) Total 1,143.0 1,126.3 100.0% Details of Loans to the Construction Industry companiesMajor Mid-sized companiesSmall and medium-sized companies 247.2 231.8 (6.3%) 53.3Apartments and condominium rentals 1.3Public corporations 46.9 560.3 (11.9%) 1.1Offices and commercial rentals 566.8 (15.6%) Home construction and development 50.3% and management rental agency, Real estate 83.7 176.3 176.0 87.6 15.6% 217.5 7.8% 216.2 19.2% Details of Loans to the Real Estate Industry Bil.) ￥ (
Composition 7.9% 0.4% 4.9% 0.1% 0.4% 2.2% 10.1% 3.3% 19.8% 8.7% 7.2% 34.5% 100.0% 2003/3 2004/3 448.2 22.6 279.9 7.0 25.1 128.7 574.6 190.0 1,126.3 493.3 410.8 1,955.2 5,662.3 Loans Classified by Industry Total 5,588.6 ‘Others’ includes consumer loans and overdrafts. Domestic Operations ManufacturingAgriculture, Forestry, Fishery and MiningConstruction 24.6 Electricity, Gas, Supply Heat and WaterInformation and CommunicationsTransport 6.9 Wholesale and Retail Trade 458.8 Finance and Insurance 22.2 Real Estate 302.0 Various Services 591.3 Government and Local Public SectorOthers Consumer (Mainly Loans) 164.6 390.5 123.2 1,843.5 1,143.0 517.5 33
Appendix (¥Bil.) Payment 107.4 75.1 11.3 Assets Assets +24.5 Caution Normal Requiring FY 2003 44.2 Downgraded 209.9 30.0 (from Mar. 2003 to Mar. 2004) to (from Mar. 2003 New made Loans Payment 128.4 3.4 37.0 of Assets Requiring Caution Assets Assets (37.9) Caution Normal Requiring FY 2002 Downgraded 103.7 205.2 22.5 (including Substandard loans) (from Mar. 2002 to Mar. 2003) to (from Mar. 2002 New made Loans Payment 153.2 18.1 75.1 Analysis of yearly net change Assets Assets Caution (163.8) Normal Requiring FY 2001 Downgraded 92.7 114.3 24.8 (from Mar. 2001 to Mar. 2002) to (from Mar. 2001 New made Loans Disclosed Claims Under the Financial Reconstruction Law 34
Appendix Bil.) ￥ (
211.0 41.2 8.2 32.9 138.5 1.2 2.2 9.3 90.2 24.8 10.4 308.3 308.3 33.2 8.9 24.2 53.2 11.5 0.0 10.2 0.0 27.0 4.3 328.3 328.3 11.8 68.4 80.3 0.6 2.3 20.2 5.0 29.6 4.7 62.5 310.6 2H/01 1H/02 2H/02 1H/03 2H/03 310.6 17.7 35.1 52.9 0.0 0.3 16.0 0.4 36.5 19.4 72.9 330.6 NPLs Removed from the Balance Sheets Bankruptand Substantially BankruptClaims Doubtful Claims 22.0 65.0 Disposal by borrowers' liquidationDisposal by reconstructionLoan sales to secondary marketWrite-offsCollection/repayment 4.1 inImprovement debtors' performance 11.2 22.1 12.6 23.2 0.0 Balance at the the end of period 330.6 Increase (newly occurred) 87.1 Decrease 73.4 Balance at the beginning the of period 316.9
Appendix 400 300 200 100 0 (Number) 99 4.0 154 178 4.4 104 5.0 261 172 6.5 294 241 212 6.0 303 5.1 239 343 212 4.7 (Included in theleft-hand chart) 222 Amount of recoveries of Amount recoveries Number of auction to bring taken to properties Legal actions 3.8 190 161 Recoveries through Auctions 2.5 209 134 2H/99 1H/00 2H/00 1H/01 2H/01 1H/02 2H/02 1H/03 2H/03 Bil) 8 6 4 2 0 ￥ 16 14 12 10 ( ） 500 450 400 350 300 250 200 150 100 50 0 Number （ 363 11.2 386 10.2 463 10.8 Number of recoveries 453 11.3 Disposal of Collateral 466 10.4 410 10.3 399 10.7 Recoveries through Sale Amount recoveries of 317 8.7 284 8.1 2H/99 1H/00 2H/00 1H/01 2H/01 1H/02 2H/02 1H/03 2H/03 Bil.) 8 6 4 ￥ ( 16 14 12 10 36
Appendix 2002/3
e compared with Increase/decreas No. of * branches (As of March 31, 2004) March of (As MTFGSMFG 18 (2) 24 (8) Keiyo Bank 114 (2) Chiba Bank 148 (5) UFJ HoldingsUFJ 10 (4) Name of bank Mizuho HoldingsMizuho 36 (1) Resona Holdings 15 - Chiba Kogyo Bank 70 - Number of Offices in Chiba Pref. in Chiba Offices of Number *Including branches 2 virtual Chuo Securities ▲ (Other 3 offices are outside Chiba & Tokyo) are outside (Other 3 offices Branch Network Chiba Bank’s Branch Network (Domestic) 37
Appendix Shre- 71,813 51,536 25,678 15,767
holdings
Number of shares (in thousands) Number of shares Number of Units (1 unit = 1000 shares) unit = 1000 Number of Units (1 Japan Trustee Services Bank (Trust Account) Account) (Trust Japan of Bank Trust Master The Dai-ichiThe Mutual Insurance Life Company Association Shareholding Employees' Bank Chiba Shre- 39,166 37,847 25,678 18,780 Insurance NIPPONKOA Company 28,905 holdings Life Insurance Nippon Company Yasuda Life Insurance Meiji Company 29,691 18,498 Bank UFJ 12,893 The Bank of Mitsubishi Tokyo 38,893 Sumitomo Life Insurance Company 14,533 Proportion Proportion Proportion Mar. 2002 Mar.2003 Mar. 2004 The Master Trust Bank of Japan (Trust Account) (Trust Japan of Bank Trust Master The Japan Trustee Services Bank (Trust Account) Dai-ichiThe Mutual Life Insurance Company Japan Trustee Services Bank (Trust Account) Shre- 29,259 28,107 25,678 holdings Insurance NIPPONKOA Company 28,905 Life Insurance Nippon Company Sumitomo Life 29,691 Insurance Company 21,294
The Bank Mitsubishi of Tokyo Bank UFJ 38,893 Life Insurance Meiji Company 38,893 19,079 Composition of Stockholders Mar. 2002Mar. 2003 Mar. 2004 Mar. Total 838,348 100.00% 838,697 100.00% 838,830 100.00% Trust banksTrust 177,550 21.18% 183,893 21.92% 204,934 24.43% Financial institutionsNational and localgovernment companiesFinancial others*companiesSecurities and Other Foreign investors 16 Individuals 479,694 57.22% Inc. Center, Depository 14,533 1.74%Securities Japan stoks and stocks at includes treasury 480,778 and others' 57.32% 0.00%*'Individuals 121,757 14.52% 456,147 54.38% 14,234 1.70% 122,306 14.58% 159,872 19.07% 24 118,886 14.17% 149,173 17.79% 8,819 1.05% 62,476 141,645 16.89% 0.00% 7.45% 16 72,182 0.00% 8.61% 113,317 13.51% Principal Stockholders NIPPONKOA InsuranceNIPPONKOA Company 28,905 The Bank of Mitsubishi Tokyo 38,893 TrusteeJapan Services Bank (Trust Account) (Trust Co. TrustAccount)Mitsubushi and Banking Dai-ichiThe Mutual Life Insurance Company UFJ BankUFJ Life InsuranceNippon Company TrustUFJ Bank (Trust Account A) 30,670 30,015 Sumitomo Life Insurance Company Life InsuranceMeiji Company 38,893 21,294 19,079 38
Appendix Trust Banks Trust Banks
Foreign
Foreign
16.8 4 14.0
Investors
24.4 13.5 30.9 Investors 0 /
H
2
17.5 3
23.9 10.4 32.5 15.4 0 /
H
1
17.7 3
8.6 14.5
21.9 37.0 0 /
H
2
18.8 2
7.3
21.2 0 /
H
1
7.4 2 14.5 14.7
19.0
21.1 37.7 37.7 0 /
H
2
19.7 1
8.0
14.4
20.1 37.6 0 /
H 1
18.4
14.8 1
10.6 36.0 19.9 Share sell-offs 0 /
H
2
4.9 0 16.0
16.5
40.2 22.1 0 /
H
1
5.9 0
14.2
16.8 40.6 22.3 0 /
H
2
3.0 9
17.0 10.5 46.1 23.1 9 /
H
1
9.6 9 4.8
15.5 47.1 22.7 9 /
H
2
4.4 8
15.7 10.0 23.2 9 /
H
1
9.7 8 4.6
15.5 46.5 46.5 9 /
H
2
9.8 7
15.2 47.0 23.4 23.4 9 /
H
1
4.4 4.4 7
10.2 46.5 9 /
H
2
4.7 6
14.9 14.9 10.3 46.1 23.7 23.7 9 /
H 1
Domestic enterprises Domestic enterprises
6
15.2 10.4 45.9 24.1 9 /
H
2
9.2 5 4.2 4.2
15.4 46.3 24.7 9 /
H
1
8.9 5 3.9
15.7 46.4 24.9 9 /
H
2
3.8 4
15.8 25.2 9 /
H (excl. trust banks, (excl. trust 1 (excl. trust banks, (excl. trust
Financial institutions
Financial institutions
8.6 8.6 4 3.3
25.6 Personal investors, others investors, Personal 9
Personal investors, others investors, Personal /
incl. securities companies) incl. securities
incl. securities companies) incl. securities H
2
Changes in Composition of Stockholders 3
8.2 3.2
16.0 16.0 46.2 46.3 46.3 26.1 9 /
H 1 5 0 50 45 40 35 30 25 20 15 10 (%) 39
Appendix ) Ⅱ SME Revival Fund SME Revival e Strategy(within Credit Div. Support Team Banking Dept., Corporat Recent News (“Nanohana Venture Competition 2003” Competition Venture (“Nanohana Kinada Mountain” on “Tree-planting and in March) performed Also established Chiba Chuo Loan Plaza, Loan Centers in Matsudo, in Centers Loan Plaza, Chiba Chuo Loan Also established Ichihara. Urayasu and Tsudanuma, June, Ohdonoi Sub-branch in July) in Sub-branch Ohdonoi June, headquarters of revision personnel system, new of adoption system, Officer Executive of Introduction Channel Div.) Direct Planning Div., Credit of (establishment Contracted “Business Cooperation Agreements” Cooperation “Business Contracted Japan Bank of Development with Oct. 1 Regional Corporate Established Apr. 1Apr. Speed” and Innovation Weeks of “100 Plan Management New Medium-Term the of Launch Feb. 5Feb. FY 2003 for Results Quarter 3rd Disclosed Jul. 11Jul. resolved Ltd. Co. Business Support Chibagin Loan of Dissolution Oct. 30Oct. 1) (Series Bonds Callable Subordinated of bil. ¥10 Issued Apr. 18Apr. in Kiyomidai Sub-branch May, in Sub-branch Okitsu followed: closings (more Sub-branch Closed Kobayashi May 22 FY 2002 for Financial Results Announced Jan. 19Jan. “Pay-easy”’ service Payment Charges ‘Chibagin Tax & Started Jan. 23Jan. Plan Management New Medium-Term the for Teams Project Established Mar. 31Mar. establishment of Anniversary 60th Mar. 26Mar. resolved Ltd. Co. Management Chibagin General of Dissolution Feb. 23Feb. Cooperation” Business on “Memorandum Contracted Small Business for Corporation Finance Japan with 19Feb. Regional Companies”for “Revival Scheme establishing on Agreed activating Nov. 21Nov. FY 2003 for Results Financial Interim Announced Jul. -Jul. 16 shares) (37 mil. shares Sell-off of Mar. 1 - 1 Mar. 17 (Nanohana)” CLO Fund “Chiba billion of ¥4.5 Sold Feb.- Mar. Investor Meetings overseas 2004 May 21 FY 2003 for Financial Results Announced 2003 26 Dec. Chinese Yuan exchanging Started 40
Appendix These statements are not represented as providing a are not represented These statements Investor Relations Tel: (81) 43-301-8147 Fax: (81) 43-242-9121 e-mail: [email protected] Corporate Planning Division The Chiba Bank, Ltd. Inquiries related to this presentation should be addressed This is an English an translation of theis This Japanese original. Please be advised that there may be some disparities due to that are inherent nuance differencesto thein difference as things in languagessuch although the English translation is prepared tothe Japanese mirror original as accurately as possible. guarantee of the Bank’s future performance, and actual results may be subject to risks may be subject results actual and of the Bank’s future performance, guarantee and uncertainties. in the to changes owing here from the may be different views presented that future performance note Please factors. and other environment operating This material contains forward-looking statements. forward-looking contains This material