Leading company creating a path to the future
Results for the First Half of Fiscal
Year Ending March 31, 2023
IR Presentation
Materials were prepared for the Bank's presentation of its results for the first half of fiscal year ending March 31, 2023 held on December 6, 2022.
December 6, 2022
Contents
1. First Half Financial Summary | ... 2 |
2. Projected Performance | ... 11 |
3. Business Strategy | ... 14 |
4. Sustainability | ... 37 |
The 77 Bank, Ltd. | First Half of Fiscal Year Ending March 31, 2023 | 1 |
01
First Half
Financial
Summary
The 77 Bank, Ltd. | First Half of Fiscal Year Ending March 31, 2023 | 2 |
1. First Half Financial Summary (Summary of profits and losses)
(Unit: JPY bn, %) | ||||||||||||||||
Summary of profits and losses | FY2021 | FY2022 | YoY change | |||||||||||||
(Non-consolidated) | 1H | 1H | Increase/decrease | Rate of change % | ||||||||||||
Gross operating income | 38.5 | 42.6 | 4.1 | 10.6 | ||||||||||||
[ | Core operating income | ] | [ | 44.4 | ] | [ | 44.4 | ] | [ | 0.0 | ] | [ | (0.1) | ] | ||
Interest income | 37.7 | 39.0 | 1.3 | 3.4 | ||||||||||||
Interest on loans and bills discounted | 20.9 | 22.5 | 1.6 | 7.3 | ||||||||||||
Interest and dividends on securities | A | 16.7 | 16.2 | (0.5) | (3.1) | |||||||||||
Fees and commissions | 6.4 | 6.3 | (0.1) | (1.4) | ||||||||||||
Other operating income | (5.6) | (2.7) | 2.9 | |||||||||||||
Gain (losses) on bonds | B | (5.9) | (1.8) | 4.1 | ||||||||||||
Gain (losses) on forex transactions | (0.8) | |||||||||||||||
(0.1) | (0.7) | |||||||||||||||
Expenses | 24.8 | 23.5 | (1.3) | (5.2) | ||||||||||||
Substantial operating income | 13.7 | 19.1 | 5.4 | 39.4 | ||||||||||||
[ | Core operating income | ] | [ | 19.6 | ] | [ | 20.9 | ] | [ | 1.3 | ] | [ | 6.3 | ] | ||
[ | Core operating income | ] | [ | 13.1 | ] | [ | 16.5 | ] | [ | 3.4 | ] | [ | 25.8 | ] | ||
(excl. gains (losses) on cancellation of investment trusts) | ||||||||||||||||
Provision of general reserve for loan losses | [1] | 2.1 | (1.0) | (3.1) | ||||||||||||
Operating income | 11.6 | 20.1 | 8.5 | 72.4 | ||||||||||||
Special income and losses | 5.9 | (0.6) | (6.5) | |||||||||||||
Bad debt disposals (-) | [2] | 0.3 | 3.6 | 3.3 | ||||||||||||
Gains on reversal of reserve for loan loss | [3] | 0.0 | 0.0 | 0.0 | ||||||||||||
Gain (losses) on stocks | C | 5.5 | 3.4 | (2.1) | ||||||||||||
Gains (losses) on investments in money held in trust | D | 1.3 | 0.2 | (1.1) | ||||||||||||
Ordinary income | 17.5 | 19.5 | 2.0 | 11.2 | ||||||||||||
Extraordinary income | - | - | - | |||||||||||||
Extraordinary loss | 0.4 | 0.3 | (0.1) | |||||||||||||
Income taxes (incl. deferred taxes) | 5.3 | 6.2 | 0.9 | |||||||||||||
Net income | 11.8 | 13.0 | 1.2 | 10.1 | ||||||||||||
Credit-related expenses [1] + [2] - [3] | 2.4 | 2.6 | 0.2 | |||||||||||||
Total gains (losses) from securities [A + B + C + D] | 17.6 | 18.0 | 0.4 | |||||||||||||
After excluding foreign currency-denominated procurement costs | 17.3 | 16.8 | (0.5) | |||||||||||||
Summary of profits and losses | ||||||||||||||||
(Consolidated) | ||||||||||||||||
Ordinary income | 18.4 | 19.8 | 1.4 | 7.4 | ||||||||||||
Net income attributable to owners of the parent | 12.2 | 13.0 | 0.8 | 6.4 | ||||||||||||
< Core operating income >
In addition to an increase in interest income, factors such as a decrease in expenses resulted in an increase in income of JPY 1.3 billion year-on-year.
< Ordinary Income and net Income >
Although credit-related expenses increased slightly, ordinary income and net income increased JPY 2.0 billion and JPY 1.2 billion year-on-year respectively, thanks partly to an improvement in gain (losses) on bonds.
Income from customer services*
Income from customer services
Income from customer services (after excluding foreign currency-denominated procurement costs)
(Unit: JPY bn)
4.5 3.9
1.8 1.7
(1.3) | (1.6) | ||
FY2020 | FY2021 | FY2022 | |
1H | 1H | 1H |
*Operating income from services for customers=
(Average balance of loans and bills discounted × Loan to deposit spread) + Fees and commissions - Expenses (Retirement benefit costs incl.)
The 77 Bank, Ltd. | First Half of Fiscal Year Ending March 31, 2023 | 3 |
1. First Half Financial Summary (Interest income)
(Unit: JPY bn)
FY2021 | FY2022 | |||||||||||||
1H | 1H | YoY change | ||||||||||||
Interest income | 37.7 | 39.0 | 1.3 | |||||||||||
Investment income | 38.0 | 39.4 | 1.4 | |||||||||||
[ Interest on loans and bills discounted | ] | [ | 20.9 | ] | [ | 22.5 | ] | [ | 1.6 | ] | ||||
[ | Interest and dividends on securities | ] | 16.7 | 16.2 | (0.5) | |||||||||
[ | ] | [ | ] | [ | ] | |||||||||
Fund procurement costs | 0.3 | 0.4 | 0.1 | |||||||||||
[ | Interest on deposits | ] | [ | 0.1 | ] | [ | 0.1 | ] | [ | 0.0 | ] | |||
(Unit: JPY bn) | ||||||||||||||
Major accounts (average balances) | FY2021 | FY2022 | ||||||||||||
1H | 1H | YoY change | ||||||||||||
Loans and bills discounted | 5,071.6 | 5,346.6 | 275.0 | |||||||||||
Securities | 2,995.8 | 3,025.4 | 29.6 | |||||||||||
Deposits and certificates of deposits | 8,636.9 | 8,864.3 | 227.4 | |||||||||||
(Unit: %) | ||||||||||||||
Interest rates | FY2021 | FY2022 | ||||||||||||
1H | 1H | YoY | ||||||||||||
Loans and bills discounted interest rate | 0.82 | 0.83 | 0.01 | |||||||||||
1.06 | ||||||||||||||
Securities interest rate | 1.11 | (0.05) | ||||||||||||
Interest rate on deposits | 0.00 | 0.00 | 0.00 | |||||||||||
Interest income increased JPY 1.3 billion year-on-year as a result of an increase in interest on loans and bills discounted thanks to an increase in yen-denominated loans and bills discounted and an increase in yield on foreign currency- denominated loans and bills discounted.
Change factors in interest income
Yen-denominated: +0.8
Factors in loans | Foreign currency-denominated: +0.8 | |||
+1.6 | Average | (Unit: JPY bn) | ||
balances | ||||
Yield | ||||
Average | +0.2 | |||
+0.4 | Others | |||
balances | +0.2 | |||
+1.2 | ||||
Yield | FY2022 | |||
(0.7) | ||||
1H | ||||
Factors in securities | Interest | |||
income | ||||
(0.5) | ||||
FY2021 | 39.0 | |||
1H | ||||
Interest | Yen-denominated: (1.7) | |||
income | Foreign currency-denominated: +1.2 | |||
37.7 |
[Reference] Investment and procurement | 2.57% |
denominated in foreign currencies |
Yield on foreign | 1.59% | +0.96% | |
currency-denominated | |||
investments | 1.01% | ||
+0.58% | 1.61% | ||
Procurement yield on | 1.01% | +0.64% | |
foreign currency- | |||
denominated* | |||
0.37% |
FY2020 | FY2021 | FY2022 |
1H | 1H | 1H |
*Foreign currency-denominated procurement yield includes foreign currency-denominated procurement | ||
The 77 Bank, Ltd. | First Half of Fiscal Year Ending March 31, 2023 | recorded in other operating income | 4 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
The 77 Bank Ltd. published this content on 03 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2023 08:39:06 UTC.