Medium Term Business Plan
FY2005 to FY2007

THE JOYO BANK, LTD.

JOYO BANK
Targets for FY2005〜FY2007

1Main objective → Increase ‘gross business profit’
Financial
Financial targets
targets

FY04

FY07(planned)

Gross business profit

118.2

136.0

Core net business income

49.0

65.0

Ordinary profit

41.5

53.0

Net income after tax

26.1

32.0

ROE

7.46%

OHR※１

56.8%

Capital ratio

11.63%(Y Bn)

Operational
Operational targets
targets
Loans to SMEs & consumers ratio

64.2%

Balance of assets under custody

675

Fees & commissions ratio

12.6%

Credit expense ratio

16ＢＰ

Loan share in Ibaraki(excluding public sector)※２36.4

Driving
Drivingforce
forceforforincreasing
increasing
grossbusinessgross businessprofit
profit①Increase①Increasemarket
marketshare
shareof:of:•housing
loans•housing loans•consumer•consumerloans
loans•SMEloans•SME loans②Strengthenasset
assetmanagement
management
approx.8% ②Strengthenbusinesses
businesses
approx.52% •Focus•Focusononhighhighpotential
potentialcustomers
customers•Strengthen
sales
promotions
approx.11% •Strengthen sales promotions③Business③Businessexpansion
expansion•Expandoperating•Expand operatingareas
areas→neighboringareas
approx.66% → neighboring areasalong
alongTsukuba
TsukubaExpress(businesstocommenceExpress (business to commenceinin
1,100Aug.
Aug.2005)
2005)•Launch•Launchofofnew
newbusinesses
businesses
approx.14% →Consumer finance→Consumer finance•Broadeninvestment areas
approx.20ＢＰ •Broaden investment areas
approx.40%（※１）Core net business income basis（※２）on 09/2004

JOYO BANK
Action plan (1)2Achieve sustainable growth in residential loans by increasing new housing loans inIbaraki and cultivating new markets in neighboring areas
Increase
Increase sharesshares ofof newnew housing
housing loans
loans inin Ibaraki
Ibaraki◎Areas along Tsukuba Express have large potential
in consumer businesses（Y Bn）

1,500（number of customers）
90,000Residential loans (volume & number of customers)

1,400※Housing starts after the commencement of Tsukuba Express is likely toreach around 16,000.

1,300•Allocate more resources to potential areas
Focus on key areas along Tsukuba Express•Form business alliance with house builders

1,200

76,991◎Target neighboring areas（Tochigi, Fukushima, Chiba）◎Increase rebuilding loans in alliance with local housebuilders

1,300

68,978 70,383

1,100

1,031
964

1,000

Cultivate new business opportunities outside Ibaraki

79,928

900
815
800

760

700

02/3
Cross-selling
Cross-selling◎Increase cross-selling to 80,000 households with housing loans
outstanding•Offer products best suited for each borrower’s life stage•Launch new product specially developed for cross-selling

03/3

04/3

05/3

．．．

08/3

JOYO BANK
Action plan (2)3Start full-scale consumer finance service to meet potential needs of young generation●Credit card issuance⇒ Issue private label credit cards
from 12/2005 with two brands(DC, JCB)①ＤＣ (Diamond Credit)•250,000 cardholders throughJoyo Credit (Joyo’s subsidiary)②ＪＣＢ (Japan Credit Bureau)•80,000 cardholders throughIbaraki JCB (JCB’s subsidiary)

TargetTargetinin2009/3
2009/3##ofofcard
holders：500,000
card holders：500,000•Outstanding•Outstandingloans
loans：Y：Y13Bn
13Bn•Annualcardshopping：Y•Annual card shopping：Y40Bn
40Bn●Card loans throughpartnership with consumer
finance company
Improve effectiveness ofconsumer finance operation＜Conditions＞•Interest rate ： 15〜18%•Limit： Y 2million•Application ： 24hours a day
through Telephone & web site
•Launch ： 09/2005 (planned)

TargetTargetinin2008/3
2008/3•Outstanding•Outstandingloans
loans：Y：Y7Bn
7Bn●Promote auto loans•Currently 5% share in Ibaraki,
which has 100 billion yen of
potential car owners•Strategic alliance with local
dealers and car insurancecompanies•Use of ‘Bank agency system’

TargetTargetinin2008/3
2008/3•Outstanding•Outstandingloans：Yloans：Y30Bn
30Bn•MarketshareinIbaraki：30%•Market share in Ibaraki ：30%

JOYO BANK
Action plan (3)4Enhance asset management service to attract potential wealthy
customers
預り資産残高の目標（Y Bn）

Deposits
Deposits && assets
assets under
under custody
custody

1,200

Assets under custody
1,000

1 trillion yen-mark（FY2004）

Anuity insurance（FY2007(planned)
Yen deposits

Over 30mm

Public bonds

800

Assets under custody

Foreign denominated deposits

25%

675

30%

Investment trusts

114

600
341

400

26240

200
0

78
77
85
3/02

108

446
68
154

115

114

92

109

3/03

3/04

259

10〜30mm

190

15%
3/05

70%

75%

111．．．

23%

3/08◎Achieve more than 1.1 trillion yen of assets undercustody in FY07 （approx.1.7 times of FY04 figures）•Attract affluent customers is the key

85%

77%

under 10mm

6%

●Sale force shift to over-the-counter sales (90employees)●Improve CRM and call centers●Launch securities intermediary business （05/2005〜）

13%

94%

※Financial Assets＝Yen deposits ＋ Investment trusts ＋ Foreign deposits ＋ Government bonds ＋ Annuity insurance

87%

JOYO BANK
Action plan (4)5Strategic allocation of resources to meet various financial needs●Shift●Shift some
some 2020 employees
employees totosouthernpartofTochigi
Areasouthern part of Tochigi Area
withwith considerable
considerable businessbusiness
potentials
potentials

Tohoku Highway
Tohoku shinkansen express

Joban line

Kan-etsu Highway

Joban Highway
Tsukuba Express

North Kanto Highway●Ibaraki●Ibaraki areaarea•Increase•Increase staffing
staffing toto achieve
achieve 40%
40%
marketmarket share(excluding
share(excluding publicpublic sector)
sector)①Increase①Increase recruitment,
recruitment, allocate
allocate HQ
HQ
staff
staff asas newnew sales
sales force
force forfor potential
potential
borrowers
borrowers②Assign②Assign retired
retired seniors
seniors toto potential
potentialsmallbusinessownerssmall business owners•Additional•Additional plans
plans
StrongStrong support
support fromfrom HQs,
HQs, on-site
on-site sales
sales
at
at thethe office
office space
space ofof potential
potential clients,
clients,
alliance
withoutside
expertalliance with outside expert
organizationsorganizations such
such asas organizationsorganizations ofoftax
tax advisors
advisors

East Kanto Highway

Tokyo metropolitan area

●Allocate●Allocate 100
100 employees
employees toto southernsouthern part
part ofof Ibaraki,Ibaraki,
ChibaandSaitamaalongTsukubaExpressand
Chiba and Saitama along Tsukuba Express andJoban
Joban lineline•Key•Key area
area withwith highhigh businessbusiness potential
potential inin housing
housing
industryindustry

JOYO BANK

6

Effective utilization of capital
CapitalY Bn、figures in （ ）shows changes from 03/2004

Dividends
Capital requiredfor 4% of risk assets

151.4（※）(▲18.9)

Capital（※）Risk asset * 4%436.8
Capital for use(29.1)

283.1

Credit risk294(▲30)

Market(Interest)

284 (▲6)Market(Price)
Operational risk

500 (▲142)

Unused capital

1,590 (646)163 (▲6)(46.2)‘Effective Use of capital’
Expand investment areas& optimize asset allocation⇒ Enhance profitability＊as of 03/2005

Return on equity
Y Bn

10%

40

Ne t pro fit afte r t ax
Ｒ ＯＥ

7 .4 6 %8%30

Deploy capital to increase returnto shareholders

20⇒ Improve capital efficiency

appro x. 8 %6 .8 0 %6%
32
234%(approx.11% of capital adequacy ratio）

26
1082%

2 .4 9 %FY 2 0 0 20
FY 2 0 0 3

FY 2 0 0 4．．．

FY 2 0 0 7

Realize solid organizational strength

JOYO BANK

7Strategic allocation of human resources to the areas with substantial business
opportunities
Numberof employees ※excluding head office
employees

Specialized staffs
Part timers
Ordinary staffs

Number of employees

5000
4,147

4,300

4,123

3,982

1,377

1,400

1,400

2,600

4000
1,295

Planned

3000

300

2000
2852

2746

2582

3/03

3/04

3/05

1000

◎Increase◎Increase sales
sales force
force byby approx.
approx. 300
300 (estimate)(estimate)
・Increase・Increase recruitments
recruitments
・Utilize・Utilize thethe retired
retired・Shift・Shift skilled
skilled staff
staff fromfrom HQs
HQs toto thethe key
key areas
areas

0．．．

3/08

●Enhance sales promotion in Ibaraki•New housing loans along Tsukuba Express•New SME loans•Consumer finance business etc.
●Cultivate new customer base outside Ibaraki•Increase financial specialists at branch offices
and establish new business base ‘Loan plaza’JOYO BANK

Inquiries related to this presentation should be addressed toThe Joyo Bank, Ltd.
Corporate Planning Division
Investor Relations
TEL : (81)29-300-2603
FAX : (81)29-300-2602
e-mail : ir@joyobank.co.jp
http://www.joyobank.co.jp/

This material contains forward-looking statements. These statements are not be represented as providing aguarantee of the Bank’s future performance, and actual results may be subject to risks and uncertainties.
Please note that future performance may differ from the views presented here owing to changes in the operating
environment and other factors. Information contained herein may be changed or revised without prior notice.
Copyright© 2004 The Joyo Bank, Ltd.
This document may not be reproduced or distributed to any third party without prior written consent to The Joyo
Bank, Ltd.