The Chiba Bank Integrated Report 2019 The Chiba Bank, Ltd. Integrated Report 1-2, Chiba-minato, Chuo-ku, Chiba-shi, Chiba 260-8720, Japan Phone: 81-43-245-1111 https://www.chibabank.co.jp/ 2019 005_9326487911909.indd 1-3 2019/09/26 11:52:20 Introduction Our Philosophy Corporate Data The Chiba Bank, Ltd. As of March 31, 2019 Aiming to be Principal Shareholders Introduction the “best retail” banking group The ten largest shareholders of the Bank and their respective shareholdings as of March 31, 2019 were as follows: Number of Shares Percentage of Total (in thousands)*1 Shares Issued*2 (%) The Master Trust Bank of Japan, Ltd. (Trust Account) 52,123 6.84 that provides top-class satisfaction Japan Trustee Services Bank, Ltd. (Trust Account) 36,583 4.80 Nippon Life Insurance Company 26,870 3.52 and is highly regarded by The Dai-ichi Life Insurance Company, Limited 26,230 3.44 Sompo Japan Nipponkoa Insurance Inc. 18,537 2.43 Meiji Yasuda Life Insurance Company 18,291 2.40 Summary customers of the region SUMITOMO LIFE INSURANCE COMPANY 17,842 2.34 MUFG Bank, Ltd. 17,707 2.32 STATE STREET BANK AND TRUST COMPANY 505223 15,001 1.97 Japan Trustee Services Bank, Ltd. (Trust Account 5) 13,702 1.79 Excluded from the figures above are 79,121 thousand treasury shares in the name of the Chiba Bank, Ltd. (Excludes one thousand shares which, although registered in the name of the Chiba Bank, Ltd. on the shareholder list, are not actually owned by the Bank.) *1 Rounded down to the nearest thousand Management Policy *2 Rounded down to two decimal places “Sustainable Management” Growth Strategy for As a regional financial institution based in Chiba Prefecture, our role and mission are to “meet the needs of regional customers and contribute to regional development by Corporate Profile Established March 1943 providing financial services.” We will continue to maintain this stance and the entire 182 branches Chiba Bank Group will work together to develop activities that improve customer (158 head office and branches, 5 special sub branches, 16 sub branches, 3 virtual branches) satisfaction, such as providing high quality financial services and products, while also Domestic 3 money exchange counters Network 49,479 off-branch ATM locations Addressing Social Issues to Achieve actively contributing to the development of the regional community. Through these “Sustainable Management” (including 12,377 E-net ATM locations at convenience stores, 23,367 ATM locations efforts, we will work to gain support from our shareholders and stakeholders. jointly with Seven Bank, Ltd., 13,441 ATM locations jointly with Lawson Bank, Inc.) 3 branches (New York/Hong Kong/London) Overseas 3 representative offices (Shanghai/Singapore/Bangkok) Number of Employees*1 4,224 Total Assets ¥14,891.6 billion (Non-Consolidated) Deposits (including NCD) ¥12,915.2 billion (Non-Consolidated) Loans and Bills Discounted ¥10,136.8 billion (Non-Consolidated) Capital Stock ¥145.0 billion Management Base to Support “Sustainable Management” Total Capital Ratio (BIS guidelines) 12.63% (Consolidated) 12.04% (Non-Consolidated) Authorized Number of Shares 2,500,000 thousand Number of Issued Shares 840,521 thousand Number of Shareholders*2 30,001 Stock Listing (Code) Tokyo Stock Exchange (8331) JAPAN SECURITIES AGENTS, LTD. Transfer Agent 1-2-4, Nihonbashi Kayabacho, Chuo-ku, Tokyo 103-8202 Figures as shown are rounded down in principal. *1 Number of employees includes transferred employees but excludes temporary staff and one-year contract employees. Financial and Corporate Data *2 Shareholders with fewer than one unit (100 shares) are excluded 1 The Chiba Bank Integrated Report 2019 The Chiba Bank Integrated Report 2019 80 005_9326487911909.indd 1-80 2019/09/26 11:52:21 Introduction Basic Management Policy Contents Our Website Introduction Introduction English 01 Our Philosophy ………………………………… https://www.chibabank.co.jp/english/ 01 Message from the President ………………… 03 Japanese (Company Overview / Investor Relations) Summary https://www.chibabank.co.jp/company/ 07 History of the Chiba Bank Group……………… 07 Main Data of the Chiba Bank Group ………… 09 Financial Highlights …………………………… 10 Summary Non-Financial Highlights ……………………… 12 Non-Financial Capital Supporting Growth Operating Area and Customer Base ……… 13 Development and Utilization of Diverse Human Resources ………………… 15 Note on Forward-looking Statements Group Management Structure ……………… 17 “Sustainable Management” This report contains forward-looking statements, including 19 Growth Strategy for financial outlook. They are based on future outlook, “Sustainable Management” Growth Strategy for assumptions and forecasts that form the basis for Medium Term Management Plan ……………… 19 plans, which the Bank deems reasonable at the time of Financial Results and Conditions ……………… 20 publication. They do not constitute a promise by the Bank Value Creation Process ………………………… 25 that these will be realized. Actual results may differ from Businesses for Corporate Customers ………… 27 those expressed in the forward-looking statements due to Businesses for Individual Customers ………… 29 Inheritance-Related Services and Trust Business … changes in conditions. 31 Initiatives for Digitalization ……………………… 33 Approach to Regional Revitalization ………… 35 Addressing Social Issues to Achieve “Sustainable Management” Strategic Alliances ……………………………… 37 Operational Reforms …………………………… 39 Initiatives to Improve Customer Satisfaction … 41 Policy on Fiduciary Duties……………………… 43 Measures for Maintaining Asset Soundness and Reconstruction Support ………………… 45 47 Addressing Social Issues to Achieve “Sustainable Management” Management Base to Support “Sustainable Management” Materiality in “Sustainable Management” …… 47 Working to Solve Social Issues ……………… 49 Editorial Policy Communication with Stakeholders …………… 53 This document has been edited in order for 55 Management Base to Support stakeholders to easily understand our initiatives “Sustainable Management” aimed at achieving “Sustainable Management.” Corporate Governance ………………………… 55 We hope that by reading this report you can Compliance …………………………………… 61 Risk Management ……………………………… 63 Financial and Corporate Data understand our basic concept as we aim to Internal Audit …………………………………… 68 become the “best retail” banking group. Directors, Audit & Supervisory Board Members and Executive Officers ………………………… 69 Message from Outside Directors ……………… Reporting Period : April 2018 – March 2019 72 (The document includes some information from Financial and Corporate Data April 2019 onwards.) 73 The Chiba Bank Integrated Report 2019 2 010_9326487911909.indd 2 2019/09/25 11:04:01 Introduction Message from the President Realizing “Sustainable Management” Hidetoshi Sakuma President, Group CEO Profile Joined the Bank in 1976. Director since June 2003 and President since March 2009, after serving as General Manager of Treasury Division and Corporate Planning Division. Business Environment issues, including business succession due to the lack of successors. It is important for us to come face-to-face with customers and Chiba Prefecture, the primary base of our provide beneficial proposals and support operations, continues to see an increase in them to solve those issues. We are working to population, largely in urban areas. There are improve productivity through fundamental also development projects of transportation operational reforms in order to offer products infrastructure, including the Ken-O and services valuable to customers. Expressway and the Tokyo-Gaikan Through such efforts, we aim to further Expressway, as well as progress in the improve the potential of the region and strengthening of the airport function and contribute to the revitalization of the regional urban development toward an international economy. medical city in Narita area. As the Tokyo Olympic and Paralympic Games will have a positive economic impact, the prefecture is expected to maintain a high growth trend. Meanwhile, our customers, who lead the regional economy, face various management 3 The Chiba Bank Integrated Report 2019 010_9326487911909.indd 3 2019/09/25 11:04:03 Introduction Message from the President Best Bank 2020 Final Stage securities subsidiary’s new branch and expansion of life insurance retail stores that – 3 years of value co-creation Introduction sell protection-type insurance policies. Furthermore, we are promoting inheritance- Under our medium term management plan, related services and trust business to enable “Best Bank 2020 Final Stage – 3 years of the smooth succession of the assets of value co-creation,” covering the three years to customers. March 2020, we aim to become the “best retail” banking group that provides top-class Initiatives to Digitalization satisfaction and is highly regarded by our regional customers, both individuals and SMEs, and to create value together (value In response to the rapid digitalization of Summary co-creation) with diverse stakeholders, in face society, the Bank offers a wide variety of of difficult changes in the business financial products and services. In February environment. 2019, we began offering a digital passbook (a Now that two years have elapsed since the smartphone app) to improve customer beginning of the plan, we have made steady convenience. We are expanding non-face-to- face channels that use the Internet and progress in measures based on the key “Sustainable Management” smartphones in order to increase contacts issues: “co-creating customer value,” Growth Strategy for “realizing work style