The Juroku Banknd
32 Financial Results Briefing[First half of the fiscal year ending March 2019]

November 28, 2018

Contents
Overview of results for 2018/9
Overview of results for 2018/9

4-9

Capital ratio, ROE, Dividend payout ratio

10

14 th Medium-term Management Plan
14 th Medium-term Management Plan: Current status

12

Recent business activities
Participation in “iBank” alliance

14

Comprehensive business tie-up with Tokai Tokyo FH

15Strengthening fee business

16

Improvement of presence in Aichi Prefecture

17

Business process reform

18

Channel efficiency and customer convenience19

ESG activities

20-24

2019/3 business forecasts
2019/3 business forecasts

26

Earnings forecasts and other future-related statements made in this document are based on information available at the timeof publication and a certain level of assumptions that are considered to be reasonable. Actual results may differ significantly
due to a wide range of factors.
2

Overview of results for 2018/9

3

Overview of results for 2018/9
Non-consolidated（Unit: 100 million yen)
2016/92017/9 A

2018/9 B

B－A

Overview of non-consolidated resultsCore gross operating profit increased by
1.0 billion yen YoY to 28.9 billion yen , due toCore gross operating profit

317

279

289

10

an increase in Net interest income and Fees and

Net interest income

280

239

250

11

commissions

Fees and commissions

25

38

40

2

11

1

△1

△2

259

252

227

△ 25

Personnel expenses

144

140

124

△ 16

Non-personnel expenses

98

95

88

△7

Net core operating profit increased by 3.6

Net core operating profit

57

26

62

36

billion yen YoY to 6.2 billion yen

Profit related to securities investment

26

19

10

△9

26

6

△2

△8

Profit related to securities investment

0

12

13

1

decreased by 0.9 billion yen YoY to 1.0 billion

Credit costs

9

△ 11

8

19

yen, as a result of promoting replacement ofOrdinary profit

86

62

72

10

low yield US dollar bonds in US interest rates

Interim net profit

61

46

52

6

upward trend

Other operating profit(except profit on JGBs and other debt securities)

ExpensesProfit on JGBs and other debt securities

Profit on equities

Consolidated
2017/9 A

2018/9 B

expenses and Non-personnel expenses

Credit costs increased by 1.9 billion yen YoY

B－A

to 0.8 billion yen, due to no upgrades of large

Core gross operating profit

350

310

323

13

Expenses

277

273

252

△ 21

Net core operating profit

72

37

70

33

Ordinary profit

97

72

79

7

64

49

54

5

of the parent company

22.7 billion yen, due to decrease in Personnel（Unit: 100 million yen)
2016/9Interim net profit attributable to shareholders

Expenses decreased by 2.5 billion yen YoY toborrowers unlike the previous year

Ordinary profit increased by 1.0 billion yen
YoY to 7.2 billion yen

Interim net profit increased 0.6 billion yen
YoY to 5.2 billion yen

4Overview of results for 2018/9 （non-consolidated）
Net interest income

Fees and commissions

JPY loans and deposits(100 million yen)

300
250

280
28
55

200

JPY securities investment(100 million yen)

Foreign currencies

50

Individual-related
Corporate-related
Others

250

239
12

41

36

30

9

10

25

5

150

5
7

20
100

40

38

40

19

195

189

3

188

50

25

22

10
14
0

0
16/9

17/9

16/9

18/9

17/9

18/9

Average balance and yield of securities investment

Average balance and yield of JPY loan

JPY securities

Average balance(100 million yen)

45,000

Average yield

1.070

(%)
1.200

0.974

0.919

Foreign currency securities(100 million yen)

JPY average yield
Foreign currency average yield

15,000

2.563

1.000

(%)

3.000
2.500

1.984

42,5000.800
40,0000.400

13,3375,000

40,25937,50038,7930.200

35,000

0.000
16/9

17/9

18/9

2.000
1.500

0.600
41,9051.866

10,0000.834

11,117

10,589
0.654

1,570
16/9

1.000
0.500

3,891
0

0.776

17/9

2,239
0.000
18/9

5

Overview of results for 2018/9 （non-consolidated）
Balance of securities investment(100 million yen)

20,00015,00018,593
4,570
1,475
1,288

10,000

3,069
2,341

5,000
5,848

Valuation gains and losses of securities

JGBs

Local government bonds

Corporate bonds

stocksOthersForeign currency securities

13,301

13,897

1,493
1,264
1,456

2,546

2,641

2,044

2,198

2,425

4,247

3,985

1,384
1,510

Foreigncurrency

1,000

881

800

85

757

750

746

794

49

21

-37

-65

17/9

18/9

600
530

400
200

JPY

264
0

0

-200
16/9

17/9

18/9

16/9

Cross-held stocks（ book value basis ）Average duration and yield of securities
investment(year)
8

7.30

Duration(JPY bonds/Left axis)
Duration(Foreign currency bonds/Left axis)
Yield(JPY bonds/Right axis)
Yield(Foreign currency bonds/Right axis)
5.76

6

5.76

(%)
8.000

4

0.834

1.984
0.654

3.49

6.000

1,000

Percentage against core capital

800

400
2.000

0.776
0.000

17/9

18/9

(%)
24.00
23.00

21.6

4.000

2.563

0
16/9

Cross-held stocks

600
3.48

1.866

(100 million yen)

23.0

4.44

2

JPY bonds
StocksOther securities(100 million yen)

22.00
20.8

883
573

551

200

546

0

21.00
20.00
19.00

09/3

・・・

16/9

17/9

18/9

6

Overview of results for 2018/9 （non-consolidated）
Expenses

Core ＯＨＲ
Personnel expenses(100 million yen)

300

(%)

Non-personnel expenses

259

250

16

100

taxes

252

90

227

16

98

70

95
88

150
100
144

140

81.7

78.4

60
50

50

90.4

80

15

200

Core OHR
Personnel expenses OHR
Non-personnel expenses OHR

45.4

40
124

30

30.9

50.4
42.8
34.1

30.3

20

0
16/9

17/9

16/9

18/9

Profit of customer services(100 million yen)

20

17/9

18/9

Net interest margin

Profit of customer services = loan average balance × difference ininterests rates for depositors and borrowers + net income from fees andcommissions－ operating costs

(%)
0.120

0.080

10

4

0.080

0.055

0
0.040

-10
-20

-27
-40

0.000

-0.057-30-0.040-40-50-0.080
16/9

17/9

18/9

16/9

17/9

18/9

7

Overview of results for 2018/9 （non-consolidated）
Loan balance（by region）
Gifu Prefecture(100 million yen)

Aichi Prefecture

41,742

39,66140,000

Others

Large companies

43,279(100 million yen)

39,661

5,006

4,779

4,685

Loan balance （by sector）

40,00030,00021,523

20,264

18,62520,00010,0004,246

14,56815,834

16,396

17,154

17,167

5,724

5,893

6,032

16/9

17/9

18/9

13,416

10,00016,74916,69916,351

0

16/9

17/9

18/9

Loan-to-deposit ratio and loan ratio to SMEs andindividuals
Loan-to-deposit ratio

77.00
76.00

41,742

Local governments

43,27920,0000(%)

Individuals

4,126

4,124

30,000

SMEs

Loan ratio to SMEs and individuals

75.99

76.25
76.10

75.16

Credit costs and ratio of non-performing loans（Financial Revitalization Act basis）
Ratio of non-performing loans

15

2.45
9

1.80

8

0
74.00

73.73

-5

73.00

(%)
3.00

10
5

75.00

Credit costs(100 million yen)

2.00

1.52
1.00

-11

-10

72.45

72.00
16/9

-15
17/9

18/9

0.00
16/9

17/9

18/9

8

Overview of results for 2018/9 （non-consolidated）
Home mortgage balance（except apartment loan）
Gifu Prefecture(100 million yen)

Aichi Prefecture

Others

20,00015,000Apartment loan balance
10,00012,87438

10,0008,445

14,025(100 million yen)

15,295
48

44

9,418

10,486

5,000

5,000
4,391

4,564

4,760

16/9

17/9

18/9

Deposit balance (by region)
Gifu Prefecture(100 million yen)

2,104

16/9

17/9

18/9

Aichi Prefecture

Deposit balance (by sector)
Others(100 million yen)

60,00054,37955,22056,038

498

411

378

50,00014,87014,681

14,75450,00040,00040,00030,00030,00020,000

2,062

0

0

60,0001,981

39,011

40,12540,904

Individuals

Corporates

Local governments

54,37955,22056,038

3,235

2,943

3,128

14,93915,325

15,511

36,20436,95137,397

16/9

17/9

18/9

20,00010,00010,000

0

0
16/9

17/9

18/9

9

Capital ratio, ROE, Dividend payout ratio
Capital ratio (non-consolidated)
Capital ratio (Domestic rule)

(%)

10.00

9.64

8.00

8.50
8.61

8.40

11.00

8.00

9.68
9.13

8.87

8.29
7.00

6.00

6.00

5.00

Capital ratio (Domestic Basel III fully implemented basis)

9.00

7.00

8.67

8.64

17/9

18/9

5.00
16/9

17/9

18/9

16/9

Dividend payout ratio

ROE
3.81

Dividend payout ratio(non-consolidated)(%)

ROE（non-consolidated）

(%)
4.00

10.35

10.00

9.03

9.00

Capital ratio (Domestic rule)(%)

Capital ratio (Domestic Basel III fully implemented basis)

11.00

Capital ratio (consolidated)

Dividend payout ratio(consolidated)
36.22

40.00

ROE（consolidated）

35.00
3.50

3.70

33.84

30.00
3.15
2.96

3.00

25.01
25.00

3.14

21.30

23.86

20.00
2.86

20.19
15.00

2.50
16/9

17/9

18/9

16/9

17/9

18/9

10

14 th Medium-term Management Plan

11

14 th Medium-term Management Plan : Current status
Start April 2017

Midpoint

September 2018

End March 2020

14 th Medium-term Management Plan
Major actions since the start of the plan
Establishment of customer-oriented business operation
Sales
structurereformIntroduced “Branch Activity Process Evaluation System” which evaluates efforts to establish long-term relationships withcustomers instead of seeking short-term profits

Improvement of profitability

Enhancement of financial intermediaries function

Promoting loans to SMEs based on “evaluation of customers’ business potentials”, promoting corporate solution sales,
promoting deposit asset sales, preparing for launch of joint venture subsidiary for securities business

Promotion of business process re-engineering
Business
processreformEfficient branch operation

Promoting “Branch Reform Project”, slimming down Headquarter functions, expanding replacement of large scale full-banking
type branches with less human compact branches

Actions aiming at achieving core OHR 60% level
Reducing costs through proper placement of human resources, cutting advertising expenses and software development
expenses etc.

Numerical targets of 14 th medium-term management plan
Before the plan（2017/3 Actual）

2018/3（Actual）

2018/9（Actual）

Targets for
final FY (2020/3)

10 billion yen

9.9 billion yen

5.4 billion yen

10 billion yen（deposit average balance + loan average balance）

9,350.1 billion yen

9,624.2 billion yen

9,801.0 billion yen

10 trillion yen

Deposit average balance

5,410.8 billion yen

5,501.0 billion yen

5,565.6 billion yen

5,700 billion yen

Loan average balance

3,939.3 billion yen

4,123.1 billion yen

4,235.4 billion yen

4,300 billion yen

8.84%

8.60%

8.64%

Around 8.7%

Before the plan（2017/3 Actual）

2018/3（Actual）

2018/9（Actual）

Long-term target

3.00%

2.94%

3.15%

5.00% or above

Contents
Earning
capability
Growthpotential

Net profit (consolidated)
Presence in local economy（Customer
base）
Financialsoundness

Capital ratio (consolidated)

Domestic Basel III fully implemented basis

Long-term target
Contents
Earning
capability

ROE (consolidated)

12

Recent business activities

13

Participation in “iBank” allianceContracted basic agreement on start of negotiations for “iBank” alliance (November 2018)

App for smartphone

First attempt in Central-Japan area

Financial functions

iBank service alliance“Wallet+”Non-financial functions

Balance

Cash flow

Deposit

My coupon

Information

Notification

Loan

Investment

PointsOthersThe Bank of Fukuoka
The Kumamoto bank
The Shinwa Bank
The Bank of Okinawa
Hiroshima Bank
The Nanto BankThe Yamanashi Chuo BankThe Juroku Bank

十六銀行の関連サービス

THEO+
十六銀行

ウォレットプラスに登録している十六銀行の貯蓄預金口座へキャッシュバック

十六銀行

Considering capital participationand deployment of our employees

14Comprehensive business tie-up with Tokai Tokyo FH
Realizing synergy effect through the tie-up
Will launch joint venture subsidiary for securities business as a first step, and provide next-generation’s financial
services to customers by making the best use of both companies’ resources

The Juroku Bank
Business succession
M&A

Product development

Regional fund

Joint venture subsidiary

Fund operation

FinTechHigh-net-worth

Progress of the tie-up
Started derivatives trading(currency option)

Developing loan product for customers of
TTFH

Developing joint operation scheme
for business succession fundCo-hosting seminars

Communications between both companies’
employees

15Strengthening fee business
Ratio of fee revenue （fees and commissions + derivative related revenue ) to core gross operating profit
Aiming to raise the ratio to 20% as early as possible from current 15% level to realize strong profitability againstinterest rate market volatilities
Ratio of fee revenue to core gross operating profit(%)(100 million yen)

8,000

30

to 20% as early as possible

20

10

Balance of individual client assets（ Investment type product ）

14.8

6,000
4,000

0
17/9

18/9

Corporate solution related revenue
1,049

Derivatives
Private Placement Bond fees

798

M&A fees

300

0

205

157

74
114

466

140

155

107

132

Business matching fees

600

172

7,494
251

4,774

5,218

5,833

1,672

1,594

1,409

16/9

17/9

18/9

2,000

Syndicated loans and Commitment fees

900

166

Bonds

8.3

16/9

1,200

6,614

Insurance

6,985

15.8

0

(million yen)

Investment trust

179
21
49
108
16/9

123

499

244
17/9

18/9

Corporate solution related revenue grows
steadily due to the effect of strengthening
sales structure of setting up a “Corporate
Solution Team” at headquarter in January
2018.
Derivative revenue is strong“Custom-made FX risk hedging product”,
with which customers can adjust amountand timing of cash flow flexibly,
successfully captured customer needs.
FX risk hedging product TARF（Target
Accrual Redemption Forward), which was
released in 2017, also grows steadily.
16Improvement of presence in Aichi Prefecture
In terms of net interest income on loans and deposits, Aichi exceeds Gifu.

Loan average balance

Net interest income onloans and deposits(100 million yen)

Gifu

Aichi

92

100

Tokyo・Osaka
92

90

91

87

Gifu

(100 million yen)

Aichi

Tokyo・Osaka

25,00083

21,383

19,95780

20,00060

15,00040

10,00018,527

13

12

15

4,542

5,000

4,621

4,455

0

0
2016/92017/92016/92018/9Market shares of loans in Aichi Prefecture(%)

2017/92018/9

Tokyo・Osaka

Aichi

40

20

20

Gifu

(100 million yen)30

16,34816,196

15,953

Fees and commissions

10

28

27

15
9

8

8
1

2

2

2016/92017/92018/90

The Juroku Bank has been second among the regionalbanks in Aichi Prefecture since March 2016.

8.0
Juroku Bank

7.0
6.0

6.1

5.0
4.0

4.4

4.7

4.8

2009/3

2010/3

5.0

5.2

5.8

6.4

6.5

6.9

A BankB Bank

5.9

C BankD Bank

3.0
2008/3

2011/3

2012/3

2013/3

2014/3

2015/3

2016/32017/3

2018/3(Compiled by The Juroku Bank based on the “Financial Mapping” published by the Financial Journal Co. Ltd.)

17

Business process reform
Branch reform project
By centralizing back office works at branches to headquarter, reviewing complicated work procedures and documents,
utilizing IT, etc., eliminate back office operations from branches to create time for branch staffs to consult withcustomers

Changes in time required for back office works at branches by “Branch reform project”
Before project start
Approx. 1.8 million hours(in one year)

ActualApprox. 190,000
hours reduction（in one year）

Plan
Approx. 370,000
hours reduction（in one year）

Plan
Approx. 840,000
hours reduction（in one year）

17/3

18/9

19/3

20/3

Centralizing back office works
Processing center at headquarter undertakes back office
works from branches in bulk
BranchBranchBranchBranch・・・

Back office works
Centralized
processing

Improve efficiency

Processing center at HQ

Measures after the first half of FY2018○ Further reduction of branch back office works byreassessment of decision authorities○ Centralization and automation of credit rating works○ Expansion of RPA covered works○ Introduction of electronic contract

Headquarter

Example of RPA covered work
Consolidated B/S spreadsheet
Automatic creation by RPA○ Introduction of tablet device for sales activity

18

Channel efficiency and customer convenience
Low cost branch operation and efficient sales activity
Expand compact branches with less human resources by reassessing branches with full-banking functions, and realize
sales strength and efficiency by removing duplications of sales areas
10 branches with less humanresource (BLHR)

Specializes in individual loans and wealth management, enables to be operated
with less human resources than full-banking type branch

As of September 2018

Further 20 to 30 full-banking type branches will be replaced with BLHRs by March 2020
Image of transformation to BLHR
Neighboring area
Current

A branch
Full-banking typeDuplication ofsales area

Enhancement of sales strength and efficiency by removing duplication

B branch
Full-banking typeCo-operation

A branch
Full-banking typeB branch
BLHR

Flexible staff
deployment according
to business fluctuation

Less HRSpecializes inindividual loans andwealth management

Promotion of digitalization
Promote customer convenience and business efficiency by digitalization of channels and settlements
App for account opening

Launched March 2018

Account opening via smartphone

Juroku JCB debit card

Launched April 2018

Passbook-less accountWill be launched January 2019 Passbook function to Web

Promote cashless settlements

No need to visit, improvecustomer convenience
Reduce cash related cost such as
ATM’s
Improve customer convenience,
reduce management cost

19

ESG activities Environmental conservation
The Juroku Bank will actively address ESG related issues
and aim to realize a sustainable community

Basic philosophy
The Juroku Bank Group recognizes that the whole society needs tobe responsible for environmental conservation activities. As a good
corporate citizen that serves local communities, we will contribute to
the formation of a sustainable society and create corporate value by
diligently addressing environmental issues through our businessactivities.
Guidelines
１．We will comply with environmental laws, regulations, agreements etc.
２．We recognize that effort to conserve the environment is one of our top

SocialEnvironment

Our environmental policy

management priorities, and strive to disclose information on our activities.

３．We will accurately grasp the environmental impact of our own corporate

Governance
Environmental conservation activities

activities and work to reduce the environmental impact through energy saving
and resource saving etc.
４．We will support customers’ environmental conservation efforts through thedevelopment and provision of environment friendly financial products andservices.
５．Based on a long-term perspective, we will promote contribution to society
through wide range cooperation with community members.
６．We will educate our employees to improve their environmental awareness.

Environment

Contribute to development of sustainable society through our environmental conservation activities, aiming to grow with the local society.

Participated in local volunteer activities
Nagara River clean up project（Gifu）

Toki River clean up activity（Gifu）

Forest protection activity

Investment in Green Bond

Activity at “Juroku Bank’s Forest MITAKE”○ Issuer

Mitsubishi UFJ Lease○ BondGreen Bond #1○ Date of issue

April 11, 2018

○ Amount 400 million yen

20

ESG activities Contribution to revitalization of local economy“Gifu Brand” appeal project in Tokyo area
Contribution torevitalization of local
economySocial

Gifu Prefecture government’s project to promote Gifu products in Tokyo area for
Gifu Brand’s recognition and revitalization of local economy
At the request of Gifu Prefecture government, support expansion of Gifu
products’ channels in Tokyo area
Project since August 2018

Gifu Prefecture

Creating
shared value

Gifu Prefecture government

The Juroku
Bank

RequestSupportAichi Prefecture

Growth of local
economy contributes toJuroku Bank’s
profitability

Hold business fairs

Support

Reverse Expo type business fair “Supplier searching service”
Suppliers in Gifu
Prefecture
Outcomes

Community development

The Juroku Bank

SocialActively support community cheering events to increase inflow ofpeople to the community and promote local economy

Support for community cheering events○ “Visit 16 Sake breweries at Nagara River” event
From June to December 2018
Tourism to visit to Sake breweries at Nagara River
Gifu prefecture is 7th place in terms of number of Sake breweries（2016年12月取扱い開始）○ “World’s TAMAMIYA Bar Ticket” event
From August 2018
Support sales of tickets for local Sake and foodsin “TAMAMIYA” area where bars and restaurants
gather densely○ “Nationwide entertainment festival” August 2018
Sub-culture event at YANAGASE shopping street in Gifu city
90 companies and groups participatedApprox. 30,000 people visited

Business fair

5 business fairs
105 business meetings

Buyers in Tokyo area
Major department stores, hotels,
airlines etc.

Infrastructure development

SocialFinancially support Gifu Prefecture government’s large scale
infrastructure projects, and promote revitalization of local economy
through the region’s network infrastructure development
Gifu Prefecture government’s large scale infrastructure projects○ Tokai Loop Expressway West Route development
Budget 20.2 billion yen（FY 2018）○ Highways development
Budget 32.4 billion yen (FY 2018）
Financially support the projects by underwriting Gifu Prefecture
Government bonds

Actual underwriting in 1H FY 2018 19.8 billion yen

21

ESG activities

Engagement first

Enhancement of financial intermediaries function

SocialEncourage engagement with customers, promote loan products which create strong relationships and commit long term supports

Loan product “Active Loan”

Loan product “Growth Loan”（Since December 2016）（Since March 2018）

Product features

Product features○ Main target is middle risk class○ Subject to create customers’ business potentials evaluation sheet○ Subject to create business plan, set more than 3 KPIs, createcustomers’ business potentials evaluation sheet○ 7 years of maximum term（tail-heavy repayment equivalent to 15
years amortization possible）○ 10 years of maximum term（tail-heavy repayment equivalent to15 years amortization possible)

Actual（as of September 2018）

Actual（as of September 2018）○ Number of execution：1,042○ Number of execution：12○ Total amount：26.4 billion yen○ Total amount：2.1 billion yen○ Average interest rate：1.579%○ Average interest rate：1.692%

Engagement with customers by young employees

SocialYoung employees of branches support customers’ exhibition at Expo and expansion of business channels, which leads to deeper
understanding of business contents of the customers
Hong Kong “Food Expo 2018”

Regional Bank Food Selection 2018

In August 2018, at “Food Expo 2018” hosted by Hong Kong Trade
Development Bureau, we provided supports to our customers suchas recruiting exhibitors, holding preliminary meetings, reserving
exhibition booths, assisting half of exhibition fees, creating PR
brochures etc.

In October 2018, at the "Regional Bank Food Selection 2018" heldat Tokyo Big Sight, we provided supports to our customers such as
recruiting exhibitors, advising on improvement of products etc.

Young employees supported customers, strengthened engagement

Young employees supported customers at Food Selection

22

ESG activities
Support tourism business

Promotion of regional tourism
SocialAiming to realize revitalization of local economy by promoting tourism with abundant local tourism resources
Rebirth of old Japanese folk house Supporting rebirth project of vacant old folk house to Japanese paper showroom with accommodations
Mino city, famous for its Japanese paper
Old townscapePrivate business operator

VacantOld Japanesefolk house

Paper wholesaler’shouse built about100
years ago

The Juroku Bank
Capital participation
SupportRenovation

Japanese paper showroom
with accommodations

Fund
ALL-JAPAN Tourism Fund（MUFG Bank and 31 regional banks jointly invested）

Appeals to the world as a center ofJapanese paper

etc.

Gastronomy tourism
Four-party collaboration agreement on gastronomy tourism (April 2018)
The Juroku Bank

Juroku Research Institute

Alliance on gastronomy tourism
ANA strategic
research institute

ONSEN & Gastronomy
tourism association

What is gastronomy tourism?
It is a tourism aimed at enjoying the charm of local foods, local nature and local history etc.
It is popular around the world mainly in Europe and the United States.
23

ESG activities Human resource & GovernanceSupport for Asian students

Support for womenSocialSocialJuroku SDGs Private Placement Bond

SocialContribute to legal system of Asia

Set numerical target on female appointment

Renewed former Juroku CSR Private Placement Bond

Juroku Bank’s Scholarship for Asian students

Numerical targets○ Double the number of female employees
in assistant manager positions or higher
from 87 as of the end of FY 2014 to 174
by the end of FY 2020

Renewed former Juroku CSR Private
Placement Bond, newly launched Juroku
SDGs Private Placement Bond“tsunagarukokoro” in November 2018

Support Asianstudents

The Juroku Bank
Collaboration
Nagoya University Graduate
School of Law

Support Asian legal
systemContribute to reduction of legal risks by supporting
human resources on legal system of Asia where
many of our customers are engaged in business
FY 2018 scholarshipstudents
Nagoya University
Graduate School of Law

Actual 118 as of September 2018
○ Raise the ratio of female employees inleader positions or higher to 20% by theend of FY 2020

Juroku SDGs Private
Placement Bond

Actual 15.3% as of September 2018

Issuer※”Leader positions” are “assistant manager or higher”,“Back office work leader”, and “FA leader”

2 Vietnamese students(total 9 students since 2014)

Management Advisory Council

Governance

Ensure transparency and fairness of the Board of Directors
Management Advisory Council （Since November 2015）
Human Resource
Advisory Committee

Compensations and Others
Advisory Committee

Chairman Outside Director

Chairman Outside Director

MemberMemberOutside Director 1
Inside Director 2
Outside Expert 1

Advisory matters• Matters concerning candidates
for directors• Matters concerning candidates
for auditors• Matters concerning selectionof executive directors

Financially support efforts to solve social
problems in the region, and work withissuers to realize sustainable society

Outside Director 1
Inside Director 2
Outside Expert 1

Advisory matters• Matters concerningcompensation etc. of directors• Matters concerning evaluationof effectiveness of the Boardof Directors• Other management matters

AML/CFT

Donates partof the issuancefeeSchools
Local governments
Public companies
Social welfare entities
NPOs etc.

Governance

Strengthen anti-money laundering and combating the financing of terrorism

Actions so far○ Established “Anti-Money Laundering Desk” in Risk Management
Division (June 2018)○ Identified and evaluated risks (July to September 2018）○ Established “Anti-Money Laundering Policy” (October 2018)○ Formulated risk reduction measures (November 2018)○ Amended Risk Assessment Report（November 2018）
Actions hereafter○ Educate employees○ Establish “Anti-Money Laundering Committee” where management
members participate○ Evaluate effectiveness regularly by PDCA cycle

24

2019/3 business forecasts

25

2019/3 business forecasts
Non-consolidated（unit : 100 million yen ）2018/3

2019/3（actual）（forecasts）

581

590

9

Net interest income

486

499

13

Fees and commissions

84

94

10

10

△3

△ 13

(except profit on JGBs and other debt securities)

Expenses

487

448

△ 39

Personnel expenses

270

244

△ 26

Non-personnel expenses

189

177

△ 12

Net core operating profit

93

142

49

Profit related to securities investment

22

15

△7

Profit on JGBs and other debt securities

△ 32

△ 12

20

55

27

△ 28

Credit costs

△5

19

24

Ordinary profit

122

145

23

Net profit

93

100

7

Profit on equities(million yen)

40
20
0

Profit of customer services

Profit of customer services = loan averagebalance × difference in interests rates fordepositors and borrowers + net income
from fees and commissions－ operating
costs

33

（forecasts）(million yen)

139

151

12

99

102

3

Factors to increase or decrease of net core
Nonpersonnel
expenses Others
Personnel+12－26
expenses+26

operating profit

200

Securities
Interest
Deposit+23
loanInterest
Interest
+4
+0

150

100

50

YoY

V:+16
R:－15

V:－0
R:+4

V:+0
R:+23

Fees andCommissions
+10

142

93
V:Volume factor
R:Rate factor0
2018/3

2019/3(%)

Core OHR

90.00

0.08

0.05

80.00

82.9

83.8

Plan

0.00

-80

-0.10
19/3Plan

75.9

70.00

-0.01

-0.05

-60

18/3

（actual）

of the parent company

Plan

-74

17/3

2019/3

Net income attributable to shareholders

Net interest margin

0.10

2018/3
Ordinary profit

0.06

-30

-20
-40

Plan

(%)

（unit : 100 million yen ）YoYCore gross operating profit

Other operating profit

Consolidated

60.00
17/3

18/3

19/3Plan

17/3

18/3

19/3Plan26