Nanto Bank : Nara Prefecture’s Potential (273kb)

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Nara Prefecture's Potential

Group-wide efforts to generate regional earning power

Nara prefecture, the Nanto Bank Group's main market, is an inland prefecture with a tall mountain range referred to as the "roof of the Kinki region" in the south. It is located in the middle of the Kii Peninsula, which itself lies near the center of Japan. Although the prefecture has no airport or port facilities, it is characterized by strong resistance to natural disasters such as earthquakes and typhoons. The Group has set the goal of increasing Nara prefecture's GDP by 10% (approximately 350 billion yen) in its commitment to revitalizing the prefecture and solving challenges facing the regional community.

Overview of Nara prefecture

Economy and industry

In the national economy and industry statistics, Nara Prefecture's ranks just 40th among Japan's prefectures in the number of private business establishment, a factor indicating the depth of the corporate market, and 41st in per capita income, while its (real) GDP ranks just 37th in Japan.

GDP (real)	3,638.5 billion yen	37th
Japan
			place in
Number of		46 thousand	40th
private businesses	Japan
			place in
Number of		486,777	42nd
employed residents	Japan
			place in
Per capita	2,632 thousand yen	41st
income	Japan
			place in
Agricultural		40.3 billion yen	45th
output		Japan
			place in
Ratio of forest area	76.8%	6th
Japan
			place in

Human resources

When it comes to human resources, Nara prefecture has the best- educated population in the nation, as shown by its young people's high university enrollment rate and its education-related expenditures. As this suggests, the prefecture is fertile ground for nurturing outstanding human resources. Since the number of private businesses is relatively low, however, as indicated under "Economy and industry" at left,

it suffers from an outflow of these excellent human resources to neighboring cities such as Osaka and Kyoto.

Percentage of high school		7th
graduates obtaining		61.8%
	place in
higher education		Japan
Education-related	33,927yen	4th
expenses (monthly)	Japan
			place in
Nara prefecture's overall	71.2%	46th
employment rate		Japan
			place in
Ratio of women		42.4%	47th
in the labor force		Japan
			place in

Tourism resources

Nara is one of Japan's most richly endowed prefectures in terms of historical and cultural resources. It is the home of many World Heritage Sites, National Treasures, and other famous historical sites and attractions.

Household finances and living conditions

The residents of Nara prefecture enjoy a relatively affluent standard of living, with the second highest level of financial assets per household in Japan and a high percentage of owner-occupied houses.

Financial assets		2nd
per household 15,645 thousand yen	Japan
		place in
Ratio of owner-occupied	74.1%	6th
households	Japan
		place in
Percentage of households	85.1%	13th
with smartphones	Japan
		place in

World Heritage Sites		3	inNo.1Japan
National Treasures/		1,328	3rd
Important Cultural Properties	place in
Japan
Historic sites and		146	No.1
natural monuments		in Japan
Number of rooms		9,735	45th
in Japanese inns and hotels	Japan
			place in
Number of	26.23 million
annual tourists

Sources: "State of Nara Prefecture 2021" / Nara Prefecture, " 2018 Nara Prefecture Economic Performance," Statistics Bureau, Ministry of Internal Affairs and Communications, "2019 National Survey of Family Income and Expenditure," "2020 Household Survey"

12 Nanto Report 2022, the integrated report of Nanto Bank

Organizational overview Business model	Risks and	Strategies and	Performance	Outlook
and external environment	opportunities	resources allocation

Special capabilities for contributing to regional community development

Since the Nanto Bank Group's establishment, the regional community and its customers have entrusted it with a large share of the prefecture's deposits and loans.

The Group's unique strengths include information capabilities cultivated over many years through many points of contact with customers and others in the region. Our unconventional human resources are adept at leveraging these strengths to help individual customers deal with such issues as business succession, including successor selection, as well as at deploying the Group companies to solve a wide range of challenges facing the region.

Comprehensive Group strengths

The Nanto Bank Group comprising the Bank, 11 consolidated subsidiaries, and two equity method affiliates provides customers with a comprehensive range of financial services, including banking, securities, credit card, and leasing services. We support their efforts to improve productivity by grasping the real issues they face and leveraging our Group's wealth of information resources to provide consulting services that extend to appropriate human resources introduction and expertise in financial enhancement.

In addition to these services, we collaborate with specialized institutions and a wide range of business partners in the community to resolve a variety of customer issues.

Solving customers' issues

Unconventional human resources

	Non-financial	Friendly
	services	corporations
	Consulting services	Think tanks
	IT services	Insurance and
	Commercialization	real estate brokerage
Finance	support
Banking			Business partners
Leasing
Securities	Information	and external
organizations

Credit cards	capabilities
Investment

Strong customer base

Dominant share of Nara prefecture's deposit and loan market

Nanto Bank enjoys an unrivaled share of both deposits

Human resources

Unconventional human resources

Nanto Bank personnel consult actively with customers concerning the real concerns unique to each, giving them

and loans in Nara Prefecture.

Trust banks 2.3%

Credit unions

17.5%Deposits Regional banks

3.5%

Metropolitan banks 26.3%

Trust banks 0.0%

Credit unions
21.5%	Funds used
Regional banks	in lending
9.0%
Metropolitan banks
18.5%

Nanto Bank

50.1%

Nanto Bank

50.8%

the necessary capabilities to realize their goals.

P.34

Number of personnel with qualifications related to vitality creation

		(Persons)
		700
	559
458
		Planned
2020	2021	2022 (Fiscal year)

(As of end March 2022 among banks and credit unions in Nara prefecture, excluding Japan Post Bank, agricultural cooperatives, etc.)

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