The Yamanashi Chuo Bank,Ltd. the 32Nd Analyst Meeting(PDF:2.5MB)
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The Yamanashi Chuo Bank, Ltd. The 32th Analyst Meeting ・Fiscal 2016 Business Results ・Forecasts for the Current Term (FY2017) ・Medium-Term Management Plan “S.T.E.P. up 2019” Progress Report June 7, 2017 (Wed) Contents Profile 2 I Fiscal 2016 Business Results and Ⅲ Medium-Term Management Plan Forecasts for the Current Term (FY2017) “S.T.E.P. up 2019” Progress Report Fiscal 2016 Business Results (Summary) 4 Diagram of “S.T.E.P. up 2019” 23 Earnings Forecasts for the Current Term (FY2017) 5 Basic Strategies and Financial Targets of iiiMedium-Term Management Plan “S.T.E.P. up 2019” 24 Deposits 6 Individual Strategies Based on Basic Strategy I 25 Loans 7 Strengthen retail solution banking 25 Securities 9 Strengthen corporate solution banking 26 Fees and Commissions 11 Strengthen coordination with industrial, Operating Expenses and OHR 12 government, and academic funds 28 Credit Cost 13 Individual Strategies Based on Basic Strategy II 31 Yields & Interest Margins 14 Optimal distribution of management resources, Advanced IT utilization, Fundamental operational Capital Ratio (Non-Consolidated Basis) 15 reforms 31 Return to Shareholders 16 Western Tokyo Bloc Strategy 32 II Economic Trends in Yamanashi Prefecture Business Trends 18 Yamanashi Prefecture Economic Topics 19 Local Industries in Yamanashi Prefecture 20 Preparations for High-Speed Transportation Network 21 - 1 - Profile ■ Profile (as of March 31, 2017) ・ Predecessor Founded: April 1877 ・ Established: December 1941 ・ Head Office: 20-8, Marunouchi 1-Chome, Kofu, Yamanashi ・ Common Stock: ¥15,400 million ・ Employees: 1,685 ・ Branches (including sub-branches): 91 (74 in Yamanashi Pref., 16 in Tokyo, 1 in Kanagawa Pref.), Representative Office: 1 (Hong Kong) Head Office Our Mission Region-Based Operations and Sound Management Maintaining a close relationship with the communities in the region where we operate, we will contribute to the prosperity of the region and the development of its economy, with a commitment to sound management that enjoys the trust of our customers, while bolstering our business operations. - 2 - Ⅰ Fiscal 2016 Business Results and Forecasts for the Current Term (FY2017) - 3 - Fiscal 2016 Business Results (Summary) ( ¥ billion, %) FY15 FY16 YoY change [%] (analysis of factors) difference (analysis FY16 (¥ billion, %) YoY change [%] Balance Yield Operating income ( ) 50.9 50.9 0.0 0.1 Fund operations 33.4 (2.6) ( (7.2) ) 0.5 (3.1) Gross banking profit 38.6 37.7 (0.9) ( (2.4) ) Interest income Interest on loans 16.6 (1.4) ( (8.0) ) 0.4 (1.9) Interest income 34.2 31.3 (2.8) ( (8.4) ) Interest on securities 16.5 (1.1) ( (6.3) ) (1.7) 0.5 Fees and commissions 4.5 4.2 (0.3) ( (7.9) ) Call loan, etc. 0.2 (0.0) ( (8.0) ) 0.2 (0.2) Other operating income (0.6) (2.1) (1.4) ( (221.1) ) Fund procurement 2.1 0.2 ( 15.4 ) 0.0 0.2 Gross banking prof it on core operations 38.1 33.4 (4.7) ( (12.3) ) Interest on deposits 0.9 (0.5) ( (36.4) ) 0.0 (0.5) JGBs and other bond transactions 0.5 4.3 3.7 ( 696.3 ) Call money, etc. 1.1 0.8 ( 261.2 ) 0.2 0.6 Interest income Expenses 27.9 26.9 (0.9) ( (3.3) ) 31.3 (2.8) ( (8.4) ) - - General provision to loan loss reserve 1.6 (0.1) (1.7) ( (106.9) ) FY16 YoY change Fees and Fees commissions (¥ billion) Net business profit ( ) 9.1 10.8 1.7 19.1 Revenues 7.1 0.1 Net business profit on core operations ( ) 10.2 6.4 (3.7) (36.9) Investment trusts 0.8 (0.1) Non-operating losses 3.7 (1.9) (5.6) ( (151.1) ) JGBs held by individuals 0.0 0.0 Gains on rev ersal of prov ision to loan ( ) loss reserv e --- - Life insurance 0.8 0.1 Reversal of loan loss reserve 0.0 0.5 0.4 ( 520.2 ) Others 5.4 0.1 Equity share and similar transactions 5.2 4.5 (0.6) ( (12.9) ) Cost 2.8 0.4 Fees and commissions 4.2 (0.3) Of which, loss on dissolution of investment trusts 1.8 5.2 3.3 ( 178.7 ) Ordinary profits 12.8 8.9 (3.8) ( (30.2) ) (¥ billion) FY16 YoY change Extraordinary income (losses) ( ) Expenses (0.1) (0.2) (0.1) (153.4) Personnel 15.4 0.2 Income before income taxes 12.7 8.6 (4.0) ( (31.9) ) Premises and equipment 10.1 (1.1) Income taxes - basic 3.9 2.1 (1.8) ( (46.1) ) Taxes 1.3 (0.0) Income taxes - deferred 0.0 (0.1) (0.2) ( (430.6) ) Expenses 26.9 (0.9) Net income 8.7 6.7 (2.0) ( (23.2) ) - 4 - Earnings Forecasts for the Current Term (FY 2017) (¥ billion, %) FY16 FY17 YoY change [%] FY17 (forecast) of factors) difference (analysis (¥ billion, %) (forecast) YoY change [%] Balance Yeild Operating income 50.9 42.2 (8.7) ( (17.2) ) Fund operations 32.4 (0.9) ( (2.9) ) 0.4 (1.4) Interest income Gross banking profit 37.7 32.6 (5.1) ( (13.3) ) Interest on loans 16.3 (0.3) ( (1.8) ) 0.2 (0.5) Interest on Interest income 31.3 29.5 (1.8) ( (5.7) ) 15.7 (0.8) ( (5.1) ) (0.7) (0.0) securities Fees and commisions 4.2 5.4 1.2 ( 27.7 ) Call loan, etc. 0.4 0.1 ( 69.1 ) 0.0 0.0 Other operating income (2.1) (2.2) (0.1) ( (4.5) ) Fund procurement 2.9 0.8 ( 38.1 ) 0.0 0.7 Gross banking profit on Interest on 0.5 (0.4) ( (45.5) ) 0.0 (0.4) core operations 33.4 32.6 (0.8) ( (2.1) ) deposits JGBs and other bond Call money, etc. 2.4 1.2 ( 107.8 ) 0.5 0.7 transactions 4.3 - (4.3) ( (100.0) ) Expenses 26.9 27.4 0.5 ( 1.6 ) Interest income 29.5 (1.8) ( (5.7) ) - - General provision to loan FY17 loss reserve (0.1) 0.0 0.1 ( 146.0 ) Fees and Fees commissions (¥ billion) (forecast) YoY change Net business profit 10.8 5.2 (5.6) ( (52.2) ) Revenues 8.0 0.9 Net business profit on core operations 6.4 5.3 (1.1) ( (17.7) ) Investment trusts 0.9 0.0 Non-operating losses (1.9) (0.1) 1.8 ( 91.1 ) JGBs for individual investors 0.0 0.0 Reversal of loan loss reserve 0.5 0.5 0.0 ( 0.5 ) Life insurance 1.0 0.3 Equity share and similar Others 6.0 0.6 transactions 4.5 1.2 (3.3) ( (72.4) ) Of which, loss on dissolution Cost 2.6 (0.2) of investment trusts 5.2 - (5.2) ( (100.0) ) Fees and commissions 5.4 1.2 Ordinary profits 8.9 5.1 (3.8) ( (43.1) ) Net income 6.7 3.5 (3.2) ( (47.8) ) FY17 (¥ billion) (forecast) YoY change Expenses Dividends Personnel 15.6 0.1 FY15 FY16 FY17(plan) Premises and equipment 10.4 0.2 Dividend per share (annual) ¥10.00 ¥9.00 ¥7.00 Taxes 1.4 0.0 End of FY3/17 End of FY3/18 (estimate) Exprenses 27.4 0.5 Nikkei Stock Average ¥18,909 ¥18,909 - 5 - Deposits Deposit (average balance) Balance by Customer Segment (average balance) +18.6 +1.8 (billion)(¥ billion) ( (¥billion) billion) (+0.6%) (+0.0%) Total 3,000 2,813.2 2,834.2 2,852.8 2,854.6 3,000 Total 2,717.8 2,631.3 187.4 Local 2,852.8 2,854.6 243.4 239.3 212.1 2,834.2 236.3 government 2,813.2 2,500 230.5 68.3 70.0 65.5 Tokyo Bloc 586.1 bodies 2,717.8 78.6 562.1 558.1 587.5 540.1 2,631.3 82.1 517.1 263.7 273.6 267.6 Western 2,000 Corporate 72.5 264.0 Tokyo Bloc customers 2,500 252.0 237.7 1,500 Gunnai 447.5 452.5 460.0 439.4 Area 2,053.2 2,080.9 1,000 1,941.3 2,007.6 2,036.7 Individuals 422.4 1,883.7 406.1 2,000 500 Results Plan 0 FY12 FY13 FY14 FY15 FY16 FY17 1,500 Deposit Shares in Yamanashi Prefecture (term-end) 100% 1.7% 1.8% 1.7% 1.8% 1.7% Semi-government 12.6% 12.7% 12.9% 13.0% 13.1% institutions 1,000 2,031.0 2,054.6 2,056.7 2,061.3 Agricultural 1,914.9 1,961.2 Kuninaka Area cooperatives 28.5% 28.0% 28.0% 27.7% 28.6% Shinkin banks/ credit unions 7.5% 7.3% 7.2% 7.1% 7.0% 50% 500 Major banks (0.8)P Results Plan 49.7% 50.2% 50.2% 50.4% 49.6% Yamanashi Chuo Bank 0 ゆうちょ銀行 FY12 FY13 FY14 FY15 FY16 FY17 0% を除く FY12 FY13 FY14 FY15 FY16 - 6 - Loans(1) Loan (average balance) Balance by Customer Segment (average balance) +24.3 (\ billion) 1,800 (billion)(¥ billion) +36.7 (+1.6%) 1,522.6 Total (+2.5%) 1,459.3 1,461.6 1,498.3 1,500 1,446.9 1,447.7 258.1 National 235.3 298.2 257.6 300.6 315.8 and local 1,600 government 1,522.6 1,498.3 bodies Total 1,000 1,459.3 1,446.9 1,447.7 1,461.6 848.1 867.1 173.4 Loan assets 808.4 767.2 768.1 819.3 Private- 185.9 1,400 138.4 under the 141.1 178.0 sector 166.9 control of 500 corporations head office departments* 375.9 380.8 379.9 377.5 380.7 397.3 Individuals 1,200 330.2 345.0 325.3 318.5 304.3 304.8 Tokyo 0 Bloc FY 12 FY13 FY14 FY15 FY16 FY17 1,000 Results Plan 198.1 219.0 Western 159.7 166.5 168.2 173.8 Tokyo Bloc 800 Loan Shares in Yamanashi Prefecture (term-end) 112.2 111.6 110.0 106.7 102.7 107.0 Gunnai Area 100% 9.1% 9.1% 9.2% 9.3% 9.2% Semi-government institutions 600 7.3% 7.3% 7.3% 7.1% 6.7% Agricultural cooperatives 33.6% 33.8% 33.5% 32.3% 34.2% Kuninaka Shinkin banks/ 400 credit unions 703.8 702.1 698.1 698.1 692.8 692.8 Area 50% 8.9% 8.9% 9.2% 9.5% 8.8% Major banks 200 (0.7)P Yamanashi Results Plan 41.1% 40.9% 40.8% 41.8% 41.1% Chuo Bank 0 FY12 FY13 FY14 FY15 FY16 FY17 0% FY12 FY13 FY14 FY15 FY16 *Note: Loan assets under the control of head office departments refers to loans to the Ministry of Finance, loans made under loan participation agreements and financial receivables transferred from other industries.