The First Section of Tokyo Stock Exchange: 8359

The 43rd Information Meeting
The 31st Long-Term Management Plan

Dare to Change; Create the Next Generation（April 2018 ~ March 2021)

May 16, 2019

・This document has been prepared for information purpose only so it should not be construed as
an offer or solicitation to buy or sell any securities.
・This document includes statements concerning future business results. These statements do notguarantee future business results, but contain risks and uncertainties. Please note that futurebusiness results may differ from projections for reasons such as changes in the businessenvironment.
・Information contained herein may be changed or revised without prior notice.

＜For inquiry＞
Planning & Coordination Dept. Investor Relations
TEL：026-224-5512
FAX：026-226-5077
E-mail： irtantou@82bank.co.jp
THE HACHIJUNI BANK,LTD. The43rd Information Meeting

Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

1
All Rights Reserved.

Hachijuni Bank’s Profile
Company nameTHE HACHIJUNI BANK, LTD.

Head Office

Nagano City, Nagano Prefecture

Date ofestablishments

August 1st, 1931

Network

Domestic 151 (in Nagano:131, outside
Nagano:20)
Overseas Branch: 1 (Hong Kong)
Representative Offices: 4（Dalian,Shanghai, Bangkok, Singapore）

No. of employees

3,216

Capital stock¥52.2bn

Issued shares

511,103 thousand shares

Total asset¥10,394.6bn

Net asset¥707.8bn

Deposits¥6,746.8bn

Loans¥5,310.5bn

Total capital ratio(Basel Ⅲ)

Consolidated: 19.82％ (preliminary)Non-consolidated: 19.10％ (preliminary)Ratings

S&P Global Ratings： A
R&I： A+
JCR (obtained in Apr)： AA(As of Mar 31, 2019)

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

CDP（Climate Change）

Top rank in Japan for 3 straight years

Our replies to CDP(Climate Change)
rewarded with No.1 rank
in the Japanese banking
sector for 3 straight
LED lighting of office buildings
years.
Our long-term goal
relating to climate change
and steady reduction of
GHG emissions werehighly evaluated.

Head Office
Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

2

All Rights Reserved.

IndexMain Volume

P.4〜26

１．Outlines of FY2018 Financial Results and FY2019 Forecasts
２．Major Accounts and Main Figures
３．Progress in the 31st Long-Term Management Plan

Our cost reduction efforts made steady progress.

Topics（¥100mn)

3/20093/20103/20113/20123/20133/20143/20153/20163/20173/20183/2019G&A
expenses

603

604

605

600

586

587

583

561

579

563

547

Personnel

302

304

304

303

299

297

291

287

287

282

288

Non
personnel

273

273

274

271

261

264

261

243

256

245

226

3
THE HACHIJUNI BANK,LTD. The43rd Information Meeting

Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

Outline of the FY2018 Financial Results■ Consolidated■ Non-Consolidated（¥100mn)

3/20183/2019ChangeConsolidated grossbusiness profit

992

983

▲8

Profit on interest

702

690

▲12

Profit on fees &commissions

138

134

▲3

Trading profit

29

20

▲8

Profit from otherbusinesstransactions

122

138

16

3/20183/2019ChangeFrom※
Projections

3/2020

866
700
83

868
688
79

2
▲12
▲4

57
30
▲13

814
662
85

80

99

19

40

64

73
563

90
547

16
▲15

50
▲19

54
559

228
302

229
320

1
17

24
75

200
255

Net business profit（A-C-D)

302

▲30
350

▲30
47

105

3
252

Gains/losses related tostocks（E）

39

17

▲22

7

56

Disposal of NPL

9
0

▲41
47

▲51
46

46

6

Reversal of allowance forloan losses

4

-

▲4

▲12

-

19
▲15
348
▲21
227
▲3

290
11
218
17

▲19
15
▲58
33
▲8
21

30
18
28

290
200
9

113

108

▲5

58

110

（¥100mn)
Gross business profit（A）
Profit on interest
Profit on f&c
Profit from other business
transactions
Gains/losses related tobonds（B）
G&A expenses（C）
Core net business profit（A-B-C)
Actual net business profit（A-C）

629

609

▲19

Credit related
expenses

2

18

15

Gains/losses related
to stocks

39

18

▲20

Gains/losses onmoney held in trust

9

▲41

▲51

Ordinary profit

415

343

▲71

Net income attributableto owners of parent

258

224

▲33

Ratio of consolidated profits
to parent company’s profits(times)

1.137

1.030

▲0.107◆ FY2019 Forecasts

Transfer to general reserve forpossible loan losses（D）

Temporary profit/losses

General &administrative
expenses

Gains/losses on money heldin trust

Reversal of general reserve
Reversal of specific reserve

Ordinary profit
Extraordinary gains/losses
Net income

Ordinary profit¥32.0bn

Net income attributable to owners ofparent¥22.0bn

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

Credit related expenses
Profit/losses related tosecurities（B+E）※ Change from the 1st projections disclosed in Apr 2018
Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

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Outline of FY2018 Financial Results and FY2019 Forecasts■ Review of FY2018 Financial Results (Consolidated)
Ordinary profit was ¥34.3bn (▲¥7.1bn from FY2017) due to decreases in gains/losses on money held in
trust (▲¥5.1bn) and gains/losses related to stocks (▲¥2.0bn), and the increase in credit related
expenses (+¥1.5bn) despite the decrease in G&A expenses (▲¥1.9bn).
Net income attributable to owners of the parent was ¥22.4bn (▲¥3.3bn).

■ FY2019 Full Year Forecasts【Consolidated】
Ordinary profit will be ¥32.0bn (▲¥2.3bn from FY2018) due to the decrease in profit on interest andthe increase in G&A expenses despite the decrease in credit related expenses.

【Non-Consolidated】
Ordinary profit will be ¥81.4bn (▲¥5.4bn) due to decreases in profit on interest by higher funding costs(▲¥2.6bn) and gains/losses related to bonds (▲¥3.6bn).
General & administrative expenses will be ¥55.9bn (+¥1.2bn) due to the increase in non personnel
expenses mainly by the increase in outsourcing expenses.
Gain/losses related to stocks will be ¥5.6bn (+¥3.9bn) reflecting unwinding of cross-holding of shares,
credit related expenses will be ¥0.9bn (▲¥0.8bn).
Net income will be ¥20.0bn (▲¥1.8bn).
THE HACHIJUNI BANK,LTD. The43rd Information Meeting5
Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

Gross Business Profit (Non-Consolidated)
Profit on interest decreased by ¥1.2bn from FY2017 due to the increase in funding cost of foreign
currencies.

◆ FY2018 Increase/Decrease factors■ Gross Business Profit(¥100mn)
906
Profit fromobt
Profit on
f&c

Profit oninterest

886
53
99

751

868

866
66
80

738

814

80

99

83

700

64

79

85

688

(¥100mn)

3/20183/2019Profit oninterest

700

688

▲12

See page 7

Profit on fees&
commissions

83

79

▲4

See page 8

Profit fromotherbusinesstransactions

80

99

19

See page 9

ChangeFor reference◆ FY2019 (3/2020) Forecast
662

Profit on interest: ▲¥2.6bn from FY2018
・decrease in interest & dividends on securities
・increase in funding cost of foreign currencies
Profit on f&c: +¥0.6bn from FY2018

3/20163/20173/20183/2019THE HACHIJUNI BANK,LTD. The43rd Information Meeting

3/2020（forecast）

6
Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

Profit on Interest (Non-Consolidated)
Interest on loans increased from the previous fiscal year for the first time in 11years.
The pace of the decline in interest on loans of domestic area will become moderate.
3/20173/20183/2019

738

700

688

482

466

474

Domestic

460

443

433

International

21

23

41

Interest & dividends on
securities

343

295

302

Domestic

248

199

202

International

95

95

100

Interest on deposits

▲38

▲25

Domestic▲11

International
Interest payment oninterest rate swaps(¥100mn)

Profit on interest

Yield (%)
3/20203/20173/20183/2019Yield on loans

1.00

0.93

0.90

0.88

Domestic

0.99

0.90

0.84

0.82

1.00

0.94

0.88

0.87

1.33

1.76

2.81

3.07

Yield on securities

1.44

1.28

1.29

1.20

▲32

Domestic

1.27

1.06

1.04

0.94

▲6

▲5

International

2.20

2.34

2.46

2.36

▲27

▲19

▲27

Funding costs

0.15

0.11

0.13

0.15

▲41

▲20

▲23

Domestic

0.06

0.02

0.02

0.00

Domestic

▲30

▲13

▲15

International

1.13

1.14

1.64

1.93

International

▲10

▲7

▲8

Yield on deposits

0.06

0.04

0.04

0.05

Domestic

0.01

0.01

0.01

0.00

International

1.33

1.35

1.90

2.22

Interest on loans(¥100mn)
Loans to the Japanese
government(Average balance)

3/20163/20173/20183/20193/2020(forecast)

187

808

1,743

2,335

2,500

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

Excl. loans to theJapanesegovernment

International（forecast）

7
Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

Profit on Fees & Commissions (Non-Consolidated)
Consulting income in corporate banking (CB) marked record high because the issuance of Regional
Revitalization Support PPBs (private placement bonds) remained solid.
Income from investment type products in personal banking (PB) decreased by ¥0.2bn from FY2017
due to the deterioration of investors mind.
◆ CB: Consulting Income (¥1mn)(¥100mn)

3/20173/20183/2019Profit on f&c

80

83

79

Fees & commissions

168

174

173

CB: consulting income

18

20

21

10

11

13

Derivatives related

1

2

2

M&A related

5

5

6

31

35

33

〈Major items〉

Syndicated loans, PPBs
etc.

PB: income from investment
type products (ITP)
Life & non-life
insurances
Investment trusts
Financial instrumentsintermediary/introduction
services (FIIS)

Foreign currency
deposits (FCD)

Fees & commissions
payments
Fees related to payment
loans

8

6

8

13

15

11

4
4

7
6

88

90

94

62

64

67

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

1,810

1,769
Syndicated loans,
PPBs etc.

1,007

1,097

Derivatives
related141

147

M&A related

621

564

3/20163/2017

1,316

1,189

292

227

591

618

3/20183/2019◆ PB: Income from ITP (¥1mn)
Public bonds

4,574
63

L&nl
insurances

1,800

3,542

3,140
47

4
8

2,163

2,074

31

3,340

615

827

833
Investment
trusts

1,510

1,561

761

490

FCD

389

464

3/2016

1,142

1,306

FIIS

3/2017

20

764

470

622

881

3/2018

Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

3/20198All Rights Reserved.

Profit/Losses Related to Securities (Non-Consolidated)
Profit/losses related to securities decreased by ¥0.5bn from FY2017.
Average balance of securities increased by ¥49.6bn due to increases in municipal bonds and corporate bonds.

■Profit/Losses Related to Securities(¥100mn)■Average Balance of Securities(¥100mn)

23,73923,307

Others113

P/L related
to stocks

22

JGBs

39

80

10,635

11,79012,671

11,948563/20163/20179073

3/2018¥0.9bn3/2019▲¥4.1bn

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

2,602

2,345
3/20173/2016▲¥64.1bn

3/2017▲¥18.2bn

2,355

2,268

3/20183/2018▲¥3.1bn

CHSs

3/2017¥1.0bn3/2016
Valuation G/L on
interest rate swap
with hedge

Stocks3/2020(forecast)

CHSs

3/2019CHSs

Stocks3/2018

2,688

2,363

1,639

2,794
125
313

Stocks

647

CHSs

Bonds

1,653

3/2016¥0.1bn3/2019

3,060
36
335

406
Stocks54

StocksG/L on money
held in trust

10,0463/2018

2,853
82

2,460
Others160

55

3/2017

10,199(after interest rate swap hedge) CHSs: Cross-holding stocks

62

3/2016

13,346■Valuation Gains/Losses on Securities

24（¥100mn)
P/L related
to bonds

12,695

110

108
17

84

23,392

22,8953/20193/2019▲¥13.7bn

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Market Investment (Yen-Denominated Bonds)■Holding Amounts■Profit/Losses(Outstanding Balance)(¥100mn)(¥100mn)

Valuation
gains/losses
before hedge

600

369

443

Valuation
gains/losses
after hedge

444

344

297

Total
realized P/L

156

167

137

18,372
15,641

15,3974,523

Corporate
bonds

2,755

2,876

Municipal
bonds

1,856

2,550

450

Gains on salesof bonds

264
3,838

70

141

Interest on
bonds

97

88
-3
-12
-7

-174
JGBs

Cancellation loss on
asset swaps etc.

11,03010,011

9,971-33

Swap interest
payment
Loss on salesof bonds

3/20173/2018

-15
-5

-330

3/2019-72
3/20173/20183/2019※ The above figures were based on ALM accounting so they weredifferent from the figures on Financial Statements.
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Market Investment (Foreign Currency-Denominated Bonds)■Holding Amounts■Profit/Losses(Outstanding Balance)(¥100mn)
Valuation
gains/losses
before hedge

▲5

▲8

37

Valuation
gains/losses
after hedge

3

▲5

27

40

13

Gains on salesof bonds

2,883

Denominatedin EuroTotal
realized P/L

2,749

53

837

Interest on
bonds

61

1,809

1,441

Funding
costs

-21

-23

-12

-3

-7

Swap interest
payment
Loss on sales ofbonds

3/2019THE HACHIJUNI BANK,LTD. The43rd Information Meeting

57

-37
-1

-50

-34

3/20173/201846

50

Cancellation losses on
asset swap etc.

3/2017

14
25

884

2,046

44

Cancellation
profit on asset
swaps etc.

2,692

1,308

Denominatedin USD(¥100mn)

3/2018-18

3/2019※ The above figures were based on ALM accounting so they weredifferent from the figures on Financial Statements.
Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

-4

11

All Rights Reserved.

General & Administrative Expenses (Non-Consolidated)
Personnel expenses increased by ¥0.6bn, non personnel expenses decreased by ¥1.8bn, and tax decreasedby ¥0.3bn from FY2017.
The decrease in non personnel expenses was partly offset by the increase in personnel expenses because of
the merger with Hachijuni Business Services Co., Ltd.

■ G&A Expenses
Tax

561

Non
personnel
expenses

579
31

243

35

256

■ Depreciation and Investment Amounts（¥100mn）

563
36

245

559

547
32

34

235

226

(¥100mn)

287

287

282

289

288

3/20173/20183/20193/2020(plan)◆ FY2019 (3/2020) Forecast
・ Personnel expenses: the same level as FY2018
・ Non personnel expenses: +¥0.9bn due to increases in
outsourcing expenses such as cash transport andsystem-related costs

THE HACHIJUNI BANK,LTD. The43rd Information Meeting（plan）

42.4

40.2

Investment
amounts（original plan：51.9）（original plan：73.2）*Instant issuancemachine of card
*Next phased
system*Next phased
system*Tablets forpaperless

45.1

38.5
72.0

32.8

*Reconstructionof branches*Next phased
system◆ FY2018 Increase/Decrease Factors(¥100mn)

3/20163/20203/2019Depreciation

Main
investments

Personnel
expenses

3/2018Personnel
expenses

3/20183/2019Change

282

288

6

Non
personnel
expenses

245

226

▲18

Tax

36

32

▲3

Main factors
・Increase in wages
・Increase in temporary
employment costs

・Decrease in outsourcing
expenses・Decrease in advertisingexpenses・Decrease in consumption
tax

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12
All Rights Reserved.

Credit Related Expenses (Non-Consolidated)Though credit related expenses increased from FY2017 owing to declines of large borrowers’ ratings, outstandingbalance of NPLs and NPL ratio decreased as a result of rises of other borrowers’ ratings through business improvement
supports, and the progress of the disposal of NPLs.
Credit related expenses of 3/2020 will decrease to ¥0.9bn as some large borrowers’ ratings will rise according to theimprovement of their business performance despite a downward pressure on the Bank’s loan portfolio affected by aeconomic slowdown.

■Outstanding Balance of Reserve for■Credit Related Expenses

Loan Losses
440(¥100mn)(¥100mn)

1

General reserve

47
Transfer to generalreserve

29
15

5

0

▲25

0
▲19

▲79

3/20163/20173/201803

03/20193/2020(forecast)Creditrelatedexpenses

▲48

▲23

▲3

17

9

351

231
3/2017

171

169

211

181

3/20183/2019■Non-Performing Loans (NPLs)(¥100mn)

▲30

383
167

256

3/2016

2

Transfer to specificreserve

183

Specific reserve

Others398

3/20163/20173/20183/2019Bankrupt and quasibankrupt assets

109

101

120

101

Doubtful assets

729

640

542

492

Substandard assets

274

226

207

167

Total

1,113

967

869

761

NPL ratio

2.34％

1.94%

1.68%

1.41％

2.22％

1.83%

1.53%

1.30％

After partial direct
charge-oﬀ※※Partial direct charge-off was not executed. This figure was disclosed
only for the reference.
THE HACHIJUNI BANK,LTD. The43rd Information Meeting

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Return to Shareholders
Dividend payout ratio of FY2018 achieved “over 30%”, which is one of the target of 31st Long-Term
Management Plan.
Dividend per share of FY2019 (3/2020) will be ¥14.0 and consolidated payout ratio will be 31.5%.
(¥100mn)

3/20163/20173/20183/20193/2020（forecast）

75

70

65

69

69

¥15.0

¥14.0

¥13.0

¥14.0

¥14.0

¥6.0

¥6.0

¥6.0

¥6.0

¥6.0

30

0

29

28

―

Shareholder returns
③＝①＋②

105

70

95

98

―

Net income

277

231

227

224※

220※

Dividend payout ratio(non-consolidated) ①÷④

27.2%

30.6%

28.9%

30.9%※

31.5%※

Ratio of shareholder
returns (non-consolidated)
③÷④

37.9％

30.6％

41.9％

43.7％※―※

Annual dividends①
Dividend per share (full year)
Interim dividend
Purchase of own stocks②(non-consolidated) ④

Note※: Consolidated basis
Note: Based on the resolution of Feb 2018
THE HACHIJUNI BANK,LTD. The43rd Information Meeting

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14
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Major Accounts (Loans/Deposits)
Loans and deposits continued to increase, hitting new record highs.
Loans both inside and outside Nagano increased firmly and the increase trend will continue.

■Average Balance of Loans(¥100mn)

46,451

OutsideNaganoInsideNagano48,05921,96924,4813/201650,146

22,81325,2453/201752,47424,09826,0483/201854,183(¥100mn)

63,36662,392

25,482

26,9913/2019THE HACHIJUNI BANK,LTD. The43rd Information Meeting■Average Balance of Deposits

OutsideNagano6,272

InsideNagano56,12064,43867,242

66,170

5,880

5,752

6,428

5,908

56,94058,531

26,43160,41861,361

27,752

3/2020(forecast)

3/20163/20173/20183/2019Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

3/2020(forecast)

15

All Rights Reserved.

Main Figures (Business Loans)
Business loans increased by ¥100.7bn from FY2017 because demand for funds of capital investment
increased both inside and outside Nagano.
Business loans to SMEs increased by ¥15.2bn, mainly in loans inside Nagano.

■Business Loans by District■Business Loans to SMEs※(Outstanding Balance)（¥100mn)

OutsideNagano30,83029,82329,17328,943

18,415

18,293(Outstanding Balance)

19,58018,791

The ratio of SME loans to total business loans

50.0%(¥100mn)

15,000

47.7%
46.6%

14,500InsideNagano10,758

10,6493/20163/20173/20183/2019■Business Loans for Real Estate Sector(Outstanding Balance)
3/20163/20173/20183/2019Inside Nagano

1,521

1,549

1,658

1,712

Total

3,420

3,495

3,732

3,969

1,246

1,136

1,212

1,348

（¥100mn)(Loans to large
companies)

14,315

11,24911,031

47.9%
46.9%

48.0%

14,467

46.0%
44.0%

13,94414,00013,50842.0%

13,50013,00040.0%3/20163/20173/20183/2019※ SMEs (excl. local public entities) + self-employed company owner16※ Large companies: ¥1bn or more capital with 300 or over employees
THE HACHIJUNI BANK,LTD. The43rd Information Meeting

38.0%

Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

All Rights Reserved.

Main Figures (Personal Loans)
Personal loans increased by ¥42.7bn from FY2017 to ¥1,214.2bn (record high).
Housing-related loans increased by ¥41.4bn to ¥1,134.7bn (record high) due to the increase of demand
for funds of new homes.

■ Personal Loans■ Apartment Loans, Other Loans(¥100mn)(¥100mn)(Outstanding Balance)(Outstanding Balance)

11,38011,053

795

782

762

747

Other loans

12,142

11,7151,750

Apartment loans

3/20163/20173/2018

480

502

302

293

1,108

1,119

11,347

10,932

10,617

10,305304

297

Card loans
Housing-related
loans

458

450

Others

1,914

1,890

1,831

3/20193/2016

1,069

1,003

3/20173/20183/2019※ Loans to corporates were excluded from the above figures.
THE HACHIJUNI BANK,LTD. The43rd Information Meeting

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17

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Main Figures (Investment Type Products in Personal Banking)
Outstanding balance (market price) of investment type products in personal banking decreased by ¥26.0bn
from FY2017 due to the decrease in sales as products became less attractive in recent conditions of lower
interest rates.
Income from investment type products decreased by ¥1.1bn due to the slump of sales of the Bank andHachijuni Securities Co., Ltd.(HS), reflecting volatile market conditions.

■ Income from ITP■ Investment Type Products(Bank+HS) ※after deduction of the Bank’s intermediary fee(Outstanding Balance)

FCD

6,697
158

FIIS

332

1,113

795

1,682

168
311

5,533

653

1,604

156
210
551

1,558

Trust fees
Sale ofinvestment
trusts3,103

3/20173/20183,071

3/20193/20173/20183/2019No. of IIT accounts

11,721

18,691

22,17525,676

-

-

2,675

5,460

203

247

361

480

(Installment NISA）
Monthly installments(¥1mn)THE HACHIJUNI BANK,LTD. The43rd Information Meeting

12.0
37.9

4.8

2.1
24.6

9.4

3.0

3.0
7.3

7.3

3/2016

15.3
2.6

28.3

45.7

3/201731.4

35.4

3/2018

Copyright （C） 2019 THE HACHIJUNI BANK,LTD.

Bank

3/2016

9.1

61.7

2.5

Bank

投信積⽴

23.3

21.0

56.0

Bank

◆ Installment–type Investment Trusts (IIT)

2.8

Bank

3/20163,288

2.2（ PB: Income from investment type products)

3,365

9.2

HS

1,545

Structured
bonds

StocksLife
insurance

73.3

69.1

HS

Investment
trusts

5,793

HSPublic bonds

162(¥100mn)HS

379(Market price: ¥100mn)
6,181

3/201933.4

18

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Market Investment (the Change in Outstanding Balance of Securities)
Promoting diversified investment while continuing yen-denominated securities investment

Bonds

Direction of
FY20193/20179/20173/20189/20183/2019Interest-bearing JGBs

8,295

8,309

8,013

8,684

8,413

→

Floating-rate JGBs

1,855

1,845

1,656

1,256

1,101

→

Inflation-protected JGBs

365

350

0

11

167

→

Other domestic bonds

3,797

4,862

4,651

4,816

7,236

→

Yen-denominated securitized products

701

624

581

582

598

→

Structured bonds etc.

30

156

126

59

87

→

30

26

46

39

67

→

（Cost basis, ¥100mn)

Domestic stocks

1,173

1,150

1,148

1,162

1,138

↑

Domestic ETF

144

191

161

184

165

→

J-REIT

213

219

263

273

268

→

Other investment trusts

1,676

1,733

1,796

1,740

2,047

↑

Union-type of funds etc.

152

159

185

178

193

→

Hedge funds

147

166

224

229

238

→

Hedge funds

50

50

47

50

49

→

Yen-denominated foreign bonds

79

206

342

352

357

→

Foreign stocks, ETF etc.

39

108

103

87

105

→

2,775

3,216

2,492

2,499

2,123

→

123

274

263

398

533

→

0

0

0

0

0

→

Total

21,614

23,62022,052

22,55824,885

Bond durations (years)

4.17

3.94

3.62

3.68

3.62

Foreign securities

StocksYen-denominatedinvestment trusts

CLO

Foreign currency-denominated bonds
Foreign currency-denominatedsecuritized products
Foreign currency-denominated CLO

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

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Outline of the 31st Long-Term Management Plan

“Dare to change; Create the Next Generation”
April 2018 ~ March 2021

⇒ P.23◆ Strengthening quantity in “face-to-face sales”◆ Strengthening quality in “face-to-face sales”◆ Expansion of the scope of “face-to-face sales”◆ Strengthening “face-to-face sales” of thewhole Hachijuni Group⇒ P.25◆ Reorganization of operational sections(change of organization, review of business,outsourcing)◆ Reduction of operational processes◆ Increasing operational efficiency by IT◆ Review of structure (branch/staff)◆ Reducing burden on the customer/
improving convenience⇒ P.24◆ Career path/program of nurturing human resources◆ Staff support system according to their age◆ Personnel exchanges within the Hachijuni Group◆ Nurturing human resources in specialized fields◆ Work style reformTHE HACHIJUNI BANK,LTD. The43rd Information Meeting

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Progress in the 31st Long-Term Management Plan 【Numerical Targets】
Management Targets

Environmental Targets
FY2018Targets
Net income
attributable toowners of the parent¥25.0bn

Ratio of consolidated
profits to parent
company’s profits

1.25 times

Dividend payout ratio(consolidated)¥22.4bn（FY2020)（FY2020）

1.03 times

Over 30％（annual）

30.9％

FY2018Targets（3/2019)

Amount of greenhouse gas
emissions reduced(compared to FY2013)
No. of new contracts forelectronic delivery services:
cases
No. of new contracts for andrenewals to e-livret: cases
No. of environmental
investments and loans:
cases（3/2019)

15％（FY2020)

14.4％

3,000

3,655

100,000

44,8763,000982（over 3 years)（over 3 years)（over 3 years）

Regional Vitality Targets

No. of new business launches : companies

Targets

FY2018（3/2019）

1,000

374

6,000

2,064

500

283

1,000

435

（over 3 years）

No. of cases through business matching (sales channel
development, etc.)（over 3 years）

No. of cases utilizing private placement bonds, funds,
etc.

（over 3 years）

No. of business successions, M&As, andchange/discontinuation of businesses（over 3 years）

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

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Progress in the 31st Long-Term Management Plan
【Challenge Targets/Long-Term Management Guideline】
Challenge Targets
FY2017

Targets

Target Year

FY2018（3/2019)

Business loans to SMEs
(outstanding balance)¥1,431.5bn¥2,000bn

FY2027¥1,446.7bn

No. of SME borrowers

25,77730,000

FY2027

26,250

Income from investment typeproducts (Bank + HS)¥6.8bn¥10.0bn

FY2022¥5.4bnOHR （gross business profit basis)

65.0％

Under
60％

FY2022

63.1％

Amount of greenhouse gas
emissions reduced (compared to
FY2013)

11.2％

30％

FY2030

14.4％

Long-Term Management Guideline

ROE

Guideline

FY20185％ or higher

3.06%（3/2019）22
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Progress in the 31st Long-Term Management Plan ①
Theme① Strengthening and Expansion of “Face-to-Face Sales” in Order to Realize Customer Profits

Providing financial services most suited to customer needs

Introduction of Tablet Terminals
Expansion of paperless
Aug 2018: applications/cancellations of investment trusts,
applications of life insurance
Apr 2019: 5 transactions including account opening, changeof registered items, etc.
Reducing burden on the customer as well as enhancing
operational efficiency/soundness, creating more time for
consultation with customers
Reducing Burden on the Customer

New Small Branch ”Hachini-no-Madoguchi”
Nov 2018: “Hachini-no-Madoguchi”, the first small branch opened
after the integration of branches in Ueda City.
Operation staff: 1~2 staff
ATMs: deposit/withdrawal, and transfer
Original tablets: other transactions such as account opening, change ofregistered items

Achieving both customer convenience and efficient sales promotion
structure of the Bank
Open 9：3０〜15：30 (weekdays)※ close 12：30〜13：30

THE HACHIJUNI BANK,LTD. The43rd Information Meeting

No. of Integrated Branches : 7 (as of Mar 31, 2019)by Branch-in-Branch Integration
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Progress in the 31st Long-Term Management Plan ②
Theme②

Expansion of Investment in Developing “Human Resources” and More Opportunities for
Their Active Participation

Creating personnel system focused on each staff’s growth and worthwhileness of working

Financial Professional Group Trusted by Customers
Supporting career formation and extension of eachstaff’s capability in order to improve satisfaction andconfidence of customers.
New 15 training seminar were added in Apr 2018.
Expansion of opportunities for dispatching trainees ofyoung staff to external organizations and expansion of
personnel exchanges within group companies

Overseas trainees(tie-up banks)
KASHIKORNBANKThaiPT Bank CIMB Niaga Tbk

Indonesia

BDO Unibank, Inc.

Philippines

Joint stock Commercial
Bank for Foreign Trade ofVietnamVietnam

27 Trainees Dispatched to 23 External Organizations (as of Mar 31, 2019)

Work Style Reform (Trial of Telecommuting/Satellite Office)
Trial of telecommuting by arranging appropriate
environment in which staff can make or submit reports
outside the officeStarted utilization of unnecessary space that weregenerated through the reorganization of operational
sections
The Bank continues to support flexible work style by making
use of ICT.
Work Style Unconstrained by Time and Location
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Progress in the 31st Long-Term Management Plan ③
Theme③ Reform of Sales Promotion Structure and Operational Processes

Reinforcement of counter sales structure by raising operational efficiency

Introduction of RPA
RPA※ was introduced for routine works from May 2018.
Labor-saving by RPA: 10 operations (approximately 15,000-hour burden)
were reduced from the process of loan document preparations andinvestment trusts settlements by the end of Mar 2019.
※Using robot technology incorporated in software, RPA automated routine works andenhanced business efficiency.

The range of using RPA will be expanded to promote the automation inbusiness operation.
Creating More Time for Consultation with Customers<Labor-saving>

FY2018【full year】

10 operations

15,000 hours/a year
FY2018【1H】

６ operations

4,250 hours/a year

Operation Reform Project
All officers & employees, in a body, promote the rationalization ofbusiness operation through “Operation Reform Project” started in
Apr 2018.
“Operation Reform Project” achieved the significant reduction ofwork volumes by the end of Mar 2019: about 4,900 of staffs’requests were summarized to 800 issues, leading to the reductionof 318 operations (approximately 180,000-hour work volumes)

Reducing 180,000-Hour Work Volumes/a year
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Progress in the 31st Long-Term Management Plan ④
Deepening of Environmental Management
CDP2018 (Climate Change) : Rating “B (management)”

No.1 rank in Japanese banks
for 3 straight years”Hachijuni Bank Group SDGs Declaration” (Apr 2019)
The Bank, as a top runner of the CSR activity focusing on
environmental management, published its Hachijuni Bank Group SDGs
Declaration.
All officers and employees are committed to contributing to the 17
goals of SDGs through their ongoing business activities. The Bank
makes efforts to realize the sustainable society together with regional
communities.
The 1st company
in Nagano Pref.

The 2nd “Eco-First Company” in Japanese Banks (Aug 2018)
In August 2018, the Bank was certified as an “Eco-First Company” by the
Ministry of Environment, highly evaluated the Bank’s advanced andsustainable programs.
High level of the FY2030 target of GHG emissions
Biodiversity protection such as forest maintenance work called “Hachijuni-no-Mori”
activities and extermination of bur cucumber etc.

Challenge Target●GHG emissions of FY2030:
30% reduction comparedto FY2013
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