The Juroku Bank
33 rd Financial Results Briefing[Fiscal year ended March 2019]

June 7,2019

TSE・NSE partial listing（8356）

Contents
Overview of Results for FY 2019/3
Overview of Results for FY 2019/3
Capital ratio

4-10
11

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

13

Recent business activities
Proactive involvements in regional issues

15

Launch of Juroku Tokai Tokyo securities

16

Comprehensive business tie-up with Tokai Tokyo FH

17External collaboration in asset succession

18

Participation in iBank alliance and capital business
partnership

19

Business process reform
ESG activities

20
21-23

FY 2020/3 business forecasts
FY 2020/3 business forecasts

25

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 FY 2019/3

3

Overview of Results for FY 2019/3
Non-consolidated（Unit: 100 million yen)
2017/3

2018/3 A

2019/3 B

Overview of non-consolidated results

B-ACore gross operating profit

616

581

584

3

Net interest income

550

486

498

12

Fees and commissions

56

84

90

6

Other operating profit

10

10

△4

△ 14

511

487

443

△ 44

Personnel expenses

285

270

243

△ 27

○Expenses (△4.4 billion yen YoY）

Non-personnel expenses

197

189

174

△ 15

Net core operating profit

105

93

140

47

Cost control from the previous term
contributes over the full year

Net business income

55

61

139

78

△ 22

22

20

△2

△ 49

△ 32

△0

32

27

55

21

△ 34

Credit costs

△ 28

△5

21

26

Ordinary profit

119

122

146

24

Net income

91

93

99

6

(except profit on JGBs and other debt securities)

ExpensesProfit related to securities investment
Profit on JGBs and other debt securities

Profit on equities

Consolidated○ Core gross operating profit（ +0.3 billion yen YoY）
・Fund profit reversal
・Fees and commissions remained
steady○Profits

Ordinary profit ＋2.4 billion yen （YoY）

Net profit

Both increased in two consecutive terms

Overview of consolidated results（Unit: 100 million yen)
2017/3

2018/3 A

2019/3 B

B−A【6 major group companies

Core gross operating profit

683

645

650

5

Expenses

547

532

494

△ 38

100
million yen

Ordinary profit
17
11

11

18/3

19/3

Net core operating profit

135

113

155

42

Ordinary profit

145

139

162

23

10

100

99

106

7

parentTotal profit amount】

20
15

Interim net income attributable to owners of the＋0.6 billion yen （YoY）

Net profit
16

5
0

4

Overview of Results for FY 2019/3
Main measures implemented during the medium-term management plan
14th Medium-term Management Plan（2017/4〜2020/3）

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 frombranches to create time for branch staffs to consult withcustomers
Sales strengthen by staff relocation

Strategy effection(as of Mar 2019) compared with Mar 2017
reduction of back office operations▲420 thousand hours
Corporation solution related revenue+0.7 billion yen

Me

As a result of branch reform project, stafff relocation isaaccelerated, and more staff work in a sales division.

Indivisual related revenue+1.7 billion yensuscommissions+3.4billion yen②Decrease
Cost and Expenses▲6.8 billion yen③Efficiency

Branch Activity Process Evaluation Systemre①Increase
Fees and

Other revenue+1billion yen

Abolished sales quota, customer-oriented sales process ishighly evaluated.
Launch of 'Corporation Solution Team'
Beyond the framework of products, to a new sales structure
to find customers' true needs and realize more speedy
proposals from various angles.

Number of personnel(non-consolidated)▲ approx. 500 staﬀs(personnel expenses ▲4.2 billion yen)Staff relocation to expanding businessapprox. +340 staffs
Non personnel expenses▲2.3 billion yen

Core OHR▲7.0point④Profitability
Profit of customer
services+10.3 billion yen④Profitability
Net income+0.8billion yen

5Overview of Results for FY 2019/3（non-consolidated）
Factors to increase or decrease of
net core operating profit

Net core operating profit
Net business income
100 million yen
150

Net core operating profit

V:Balance factor

Net business income
100 million yen

Both improved significantly

180
Deposit Securities
Loaninterest interest interest
+20
+5
△1

160

100

R:Yield factor
Non- Others
personnel △25
expenses
Personnel+15
expenses+27

tax 2
Other interest
income △12
Other operating
profits △14

140

140 139
50

105

120

93
61

55

100

0
17/3

18/3

Personnel expenses
Non-personnel expenses
100 million yen

Personnel expenses

300

Non-personnel expenses

19/3

Main decreasing factor○System depreciation △0.5bn○ Advertising expense △0.1bn○ Administration fee△0.1bn○ Deposit premium△0.1bn○ Land and building rent △0.6bn

80

%
120

200

285

270
197

Total 418

V:△0
R:＋5

80

140

V:＋0
R:+20

2019/3

Change of regional bank net core operating
profit from previous fiscal year
3rd in improvement ratio
4th in improvement amount
The Juroku Bank
49.5%

20
0
△ 20

243
189

V:+14
R:△15

100

40

Total 46093
2018/360

Total 483

Fees andcommissions
+6

△ 40

174

△ 60
△ 80

6 regional banks in Tokai area

△ 100

100
17/3

18/3

19/3

6

Overview of Results for FY 2019/3（non-consolidated）
Net interest income
JPY loans and deposits

JPY securities investment

Foreign currencies

100 million yen
600

Bottomed out

550

500

55

106
400

486

498

27

40

78

76

Average balance and yield of JPY loan
Average balance

Average yield

100 million yen
45,000

1.042

0.974

0.959

1.400

0.919

0.912

43,00042,266378
18/3

Fees and commissions
100 million yen

Individual-related

90

Corporate-related

84

80

22

70
60
50
40
30

56

-0.400-0.600-0.80019/3-1.000
17/3

Others90

million yen
1,500

M&A fees

Business matching fees

14

701

52

224
279

0

20
19/3

1,416
444

337

53
18/3

19/3

Private Placement Bond fees

1,205

35
17/3

18/9

Syndicated loans and Commitment fees

23

500

49

18/3

Corporate solution related revenue

13
7

17/9

1,000

12

0.600

-0.20037,000
17/3

0.800

0.000

39,137

377

300

1.000

0.200

39,000

386

1.200

0.400

40,841

41,000

%

144
17/3

296

325
245
18/3

364

252

355
19/3

7

Overview of Results for FY 2019/3（non-consolidated）
Profit related to securities investment
100 million yen

Bonds

Average balance and yield of securities investment

Stocks

Net

60

20

22
27

△ 40

20

△0

△22

△32

△49

△ 60
17/3

18/3

Confirmed losses as aresult of replacing low
yield U.S treasury bonds
with high yield bonds
following rise of U.S.
10year yield
19/3

Valuation gains and losses of securities
StocksOther securities
700

670

736

8,000

745

0.808

△ 100

59

17/3

18/3

19/3

1.000

18/3

2,282

0.000

19/3

Balance of securities investment
13,429
1,422
1,564

JGBs

Local government bonds

Corporate bonds

stocksOthersForeign currency securities

Total

13,046
1,690
1,281

13,505
2,630

1,380

8,000

2,563

2,275

2,042

2,336

2,659

4,456

3,993

3,493

17/3

18/3

19/3

6,000

2,000

1,468

Foreigncurrency

1,444

10,000

4,000
50
△ 59

10,513
0.729

0.500

17/3

12,000

77
△ 55

1.500

1,715

0

9

689

11,027
0.708

4,004

14,000

300

100

2.500
2.000

13,168

4,000

757

500
649

3.000

2.572

2.132

1.886

100 million yen

JPY bonds

100 million yen

12,000

%

21

0
△ 20

16,00055

40

JPY securities
Foreign currency securities
JPY average yield
Foreign currency average yield

100 million yen

1,386
1,890
JPY

0

8

Overview of Results for FY 2019/3（non-consolidated）
Core OHR(%)
85

Core OHR

82.9

Profit of customer services

Personnel expenses OHR

Non-personnel expenses OHR

100 million yen

83.8
75.9

75
65

35

20

29

0

▲7.9% improvement

△30

△ 20

55
45

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

46.2

46.5

32.0

32.5

17/3

18/3

41.6

△ 40

29.9

△ 60

25
19/3

Loan-deposit Interest margin

△74

△ 80
17/3

18/3

%

0.120

0.160

0.115
0.081

0.080

0.068

0.080

0.000

0.000

△ 0.040
18/3

0.095

0.052

0.040

0.040

17/3

19/3

Net interest margin

%

0.120

Turned positive

19/3△0.008

17/3

18/3

19/3

9

Overview of Results for FY 2019/3（non-consolidated）
Non-performing loans

Ratio of non-performing loans（ Financial Revitalization Act basis ）100 million yen
Bankrupt and quasi-bankrupt assets

Doubtful assets

Substandard loans

列1

1,200
1,000

%
3.0

101

55

2.86
2.5

800
600

2.60

68
867

38
837
590

400

504

24

2.0
1.97

481

1.5

1.60

200
0

1.46
154

147

146

145

141

15/3

16/3

17/3

18/3

19/3

Credit costs

1.0
15/3

16/3

17/3

18/3

19/3

100 million yen

Factors to increase or decrease loan-loss
reserves○2017/3
Reversal in upgrade of large credit○2018/3
Reversal in upgrade of large credit○2019/3
Increase of indivisual allowance for doubtful
accounts
・decrease of upgraded customer
・increase of CF subtraction customer
・decrease of collection

10Capital
Capital ratio（non-consolidated）
CapitalCapital ratio (Domestic rule)
Capital ratio (Domestic Basel III fully implemented basis)

100
million
yen
3,500

9.22

8.57

%

2,707

2,656

9.08

17/3

18/3

3,000

8.84

2,500

2,988

200

200

2,710
210

14/3

18/3

19/3

Subordinated financing
Common shares

2,739

2,729

180

100

2,656

310

2,304

5.00

Preferred shares

3,000
2,814

2,905

2,953

8.00

7.00

17/3

Capital ratio（non-consolidated）
2,785

8.71

2,000

19/3

Improvement in capital quality

100
million yen

8.60

6.00

5.00

13/3

%
10.00

6.00

2,000

2,000

Capital ratio (Domestic Basel III fully implemented basis)

8.00

8.35

8.33

2,729

2,195

9.88

9.15

7.00

390

Capital ratio (Domestic rule)

10.00
9.00

8.49

2,500

2,500

Capital100
million
yen
3,500

9.00
8.54

3,000

Capital ratio（consolidated）

2,707

2,500

2,559

2,629

2,656

2,707

15/3

16/3

17/3

18/3

19/3

Core capital consists of
only Tier1 capital as ofthe end of March 201811

14 th Medium-term Management Plan

12

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

（March 2019）

Current Position

14 th Medium-term Management Plan

End March 2020

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）

2019/3（Actual）

Targets for
final FY (2020/3)

Net profit (consolidated)

10 billion yen

9.9 billion yen

10.6 billion yen

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

Presence in local economy

9,350 billion yen

9,624 billion yen

9,822 billion yen

10 trillion yen

Deposit average balance

5,410 billion yen

5,501 billion yen

5,550 billion yen

5,700 billion yen

Loan average balance

3,939 billion yen

4,123 billion yen

4,272 billion yen

4,300 billion yen

Capital ratio (consolidated)

8.84%

8.60%

8.71%

Around 8.7%

Before the plan（2017/3 Actual）

2018/3（Actual）

2019/3（Actual）

Long-term target

3.00%

2.94%

3.05%

5.00% or above

Contents
Earning
capability
Growthpotential（Customer
base）
Financialsoundness

Domestic Basel III fully implemented basis

Long-term target
Contests
Earning
capability

ROE (consolidated)

13

Recent business activities

14

Proactive involvements in regional issues
Business succession problems shared by wide range of staffs

All branch managers are involved in this matter and leadthe regional improvement and business chance.
Business Succession Office
8 staffs(4 staffs experienced
branch manager ）1,553 staffs of The Juroku Bank certificated by｢Business succession・Ｍ＆Ａ Expert」（⼀般社団法⼈⾦融財政事情研究会認定）（June,2019）

Cooperation with branch

Supports forcooperation withindustry,
government,
academia

Business
matching
Derivatives
trading

Business
succession
M＆A

Business succession fund
『じゅうろく企業価値成長
投資事業有限責任組合』
Alliance business with Tokai Tokyo FH

Humanresource
introduction

The Juroku Bank Group s support systemin the regional community

Customers various issues and needs
Shortage of successor and workers,
sluggish sales etc.

Proactive involvements in regional issues
Supports foroverseas
expansion

Revitalizationof the regional economy

Supports forstartups

Creating
shared value

Inheritance
Building up
assetsFinancialsupportSupports for
management
improvement
and business
revitalization

Improvement of profitability
in The Juroku Bank s Group15

Launch of Juroku Tokai Tokyo securities
Launch of joint venture subsidiary for securities
Juroku Tokai Tokyo securities has started operation
based on a comprehensive partnership signed in March,
2018.

June 3 rd, 2019 Start-up

Capital3 billion yen
Shareholder composition

Business area

Gifu prefecture

The Juroku Bank 60%
Tokai Tokyo FH 40%（Office: Gifu Ogaki Tajimi Nakatsugawa） 110 Staffs
about 10,000 accounts

about 100 billion yen assets deposited

Juroku TT securities

The Juroku Bank

Opening ceremony

Business of security company
Fundinvestment

Bonds

ETF

REIT

Equitysecurities

Capture asset management needs
deposited products
for youth

Domestic
investment trust

asset transfer needs for the next generation

Marketinfo

Various products
and know-how
Joint store of bank and securities（Ogaki office）

According toneeds,
introduce
customers toeach other.

inheritance

New added
value

Life
insurance

Strong customer
relationship16

2.
⼗六TT証券との連携
Comprehensive
business tie-up with Tokai Tokyo FH
Realizing synergy effect through the tie-up
With the launch of joint venture subsidiary for securities business as a firststep, we will improve the presence in each business area by making thebest use of both companies resources.

【 Asian Business Seminar 】

１．Composition of funds『Juroku Asia Latest Report 2019 spring』○Joint investment in funds that supports businesssuccession of customers（1 billion yen in total , in April）
Investment ratio○The Juroku Bank 45%○Others
10%○Tokai Tokyo Investment45%

２．Product development○Released a dedicated management productfor our group in commemoration of the launch・Juroku TT securities Opening Commemorative Fund
（Mutual fund）

３． Cooperation in the seminar etc.
○Co-hosting of joint briefing session for job
hunting students （February）○Support for the Asian Business Seminarsponsored by the Juroku （April）○Communications between both companies
trainees（September, December, January）【 Dedicated management product 】『 Juroku TT securities Opening Commemorative Fund 』

17

External collaboration in asset succession
Asset succession business

Strengthen business area of the inheritance and asset succession
Commercial trust
Testament substitute trust

Toward proper asset management and smooth asset
succession in old age, we ve strengthened initiatives in
the area of asset succession by collaboration andpartnership with external specialized agencies.

First in Japaneseregional bank

As an agent of Sumitomo Mitsui Trust Bank, we are involved from the productdevelopment stage about our original products scheduled to be handled and haveconsidered unique products.

Testament trust, inheritance arrangement businessStarted handling as an agent of Sumitomo Mitsui Trust Bank.

Domestic

No.1

trust bankSupporting gift tax

Under the advisory of Sumitomo Mitsui Trust Bank, we organize the products.

Civil trust
Opening of trust accounts for trustees

Sharing of know-how, examination of account opening by cooperation with a civil trust
officer etc.

Trustee loans・Support for trust formation

Under consideration in the future.

Professionalgroup oflawyers andjudicial
scriveners

By providing high quality products and services at the top of the region, we will
support the inheritance and asset succession for customers to connect the feelings
towards the family.

18

Participation in iBank alliance and Capital and business partnership
Participation in iBank allianceto provide new customer experiences and values in linewith the smartphone / mobile first era.
Overview ofiBank business3 platforms
that make up iBank

Money
Management「Wallet+」Balanc e

SeeWallet+（Financial function）
・Money management
・Purpose-specificdeposits
etc.

Information
content

Purpose-specificdeposits
Start

Find

Coupons

Launcher

Achieve

Front
page
Use
Exchange
PointsCollaboration withpartner companies

Asset
management

Increase

Loans
Achievenow

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

Wallet+（Non-financial function）
・Coupon・Adds
・Information contents

Financial information
Non-financial information
Analysis tools

First in the
Chubu area

Service linkage via iBankbusiness○To provide 「Wallet+」, smartphone dedicatedapplication developed by iBank marketingcompany, for our account holders, we ve sent
our staffs to iBank marketing company sinceApril in 2019.
Plan to start providing services in winter 2019.
○Capital business partnership (Investment) has
completed in May, 2019.
19

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 with customers

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）

ActualApprox. 420,000
hours reduction（in one year）

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

Measures that have been implemented
Review or abolition of back office works

Centralizing back office works
Review of loan statement and attacheddocuments

Measures after the first half of FY2019
Plan

Expansion of RPA covered works

370,000
hours Actual
420,000
hours

17/3

17/3

18/3

18/9

Introduction of electronic contract
Introduction of tablet device for sales
activities

19/3
19/3

20/3

20/3

Centralization and simplification of credit
fating works

Strengthening of group-wide earning capacity by replacement of staffs
Staffs created by the above efforts are relocated properly for various business area.

Reductionof workvolumeBranch（about 220 clerks）
Head quarters（about 230 clerks）（2019/3）

Growth area
Relocation
Of staffs（Securities・Lease etc.）（about 220 clerks）

Centralized
processing in HQ（about 120 clerks）

Strengthening
profitability【Consolidated】

Profitincrease

Net core operating profit+2.0 billion yen
Ordinary profit+1.7 billion yen
Net profit +0.6 billion yen（FY 2017/3）

20

ESG activities
SocialContribution to revitalization of local economy

Regional revitalization（Juroku × Curio Inc.× H.I.S）

SocialSharing issues in the community

Barrier-free tour「4 days-trip through Gifu」

Start of staffing businessHolding a new sightseeing tour where major travel agency andregional bank and local business operator have collaborated.

Juroku Research Institute Company ltd.
has started 「staffing business」

H.I.S has recruited as a plan of Universal Tourism where
people with disabilities and the elderly can enjoy travel without
hesitation.
Curio Inc., a local business operator who has developed
electric wheel chair SCOO provided test rides to theparticipants during the trip over sightseeing spots in theprefecture (Gifu City, Gujo City, Gero City, Takayama City, etc.)

We have appealed barrier-free
acceptance in Gifu and theattraction of SCOO .

SocialCommunity development

Approach to town development of Gifu city central area
Composition of Juroku Gifu city Town Development Fund

○ Limited liability business association, Juroku Gifu city Town
Development Fund has formed by joint investment with the
General Public Private Corporation Urban Development Promotion
Organization.
Through the financing ofrenovations etc. for idle realestate in the central area ofGifu city where hollowing out,
we aim to improve local
value and create mediumand long-term bustling••

Local SMEs, our business partner,
have important management issues
such as securing human resources
who should play a central role inmanagement, like managers,
engineers and professionals.
By the entry into this business, we canprovide comprehensive consulting
services for the issues and suggest
specific solutions, etc.

SocialPromotion of the attractiveness of our region（Juroku Group × ANA Strategic Research Institute Co.,Ltd. )Cooperation for ONSEN・Gastronomy walking
ONSEN・Gastronomy walking
It is a new tourism aimed at enjoying the charm of local foods,
local nature and local history etc. by walking through a hot
spring area full of Japanese charm.
When held in Nakatsugawa in May, we treated theparticipants enjoying local specialties, local sake and tomato juice
under the fine weather.

21

ESG activities
SocialHuman resource ・Regional revitalization

Support for Asian students

Contribute to legal system of Asia

Support Asian students

Collaboration

Improvement of humanity

SDGs for a newly hired employee

Juroku Bank s Scholarship for Asian students
The Juroku Bank

SocialNagoya University Graduate
School of Law
Support Asian legal system

Contribute to reduction of legal risks by supporting humanresources on legal system of Asia where many of ourcustomers are engaged in business
FY 2018 scholarship students
Nagoya University Graduate
School of Law

Spread SDGs knowledge to a newly
hired employee
Cooperation with JICA(business tie-up in2017),
・experience school meals in Uganda.
・attend SDGs business support course
in SME

2 Vietnamese students(total 9 students since 2014)
SocialSupport of entrepreneur（Juroku×Nomura securities×Deloitte Touche Tohmatsu）

NOBUNAGA21；Business plan Grant system

NOBUNAGA21；Private initiative venture support
network

Two type of grant system

Regional revitalization
Reserch of local municipalities, and transmission of
information
SocialJuroku Reseach Institute Company Limited assigned
senior resercher to the Hidatakayama satellite ofice in
Sep 2017.

○ 「NOBUNAGA21 first stage」
for enterpreneur○ 「New business plan grant system」
for business development
For the past 14 contests, 50 companies became a prize winner,it leads the increase of customers staged in start up.

Since then, he has approached to engagement withadministration and private.
As a result of his effort, he has got commissioned as"Takayama Economis and Policy adviser" from Takayama cityin May 2019.

22

ESG activities Environmental conservation・Governance
Environment

Environmental conservation activities

Contribute to development of sustainable society through ourenvironmental conservation activities, aiming to grow with thelocal society.
Participated inlocal volunteer activities

Nagara River clean up project（Gifu）

Forest protection activity
Activity at

Juroku Bank s Forest MITAKE

Enlightenment activities
Let s protect the global environment through ecologicalactivities.
Environment

Poster contest to raiseawareness regarding ecologicalactivities

Investment in Green BondFirst investment for us.

○ Investment○ amount in 2018
0.9 billion yen（２bonds）

Management Advisory Council
Ensure transparency and fairness of the Board of
Directors
GovernanceManagement 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

Outside Director 1
Inside Director 2
Outside Expert 1

Advisory matters• Matters concerningcompensation etc. of directors• Matters concerning evaluation ofeffectiveness of the Board of
Directors• Other management matters

AML/CFT
Strengthen anti-money laundering and combating thefinancing of terrorism
GovernanceActions so far○ Established Anti-Money Laundering Desk in Risk Management
Division (June 2018)○ Identified and evaluated risks (July to September 2018）○ Tighten up oversea remittance（Stop cash hadling）（August 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

23

2020/3 business forecasts

24

2020/3 business forecasts
Non-consolidated（unit : 100 million yen）
2019/32020/3（actual）（forecast）(100
millionyen)

YoY

Core gross operating profit

584

597

13

Net interest income

498

504

6

Fees and commissions

90

98

8

△4

△5

△1

443

424

△ 19

Personnel expenses

243

232

△ 11

Non-personnel expenses

174

165

△9

Net core operating profit

140

173

33

Profit related to securities investment

20

10

△ 10

Profit on JGBs and other debt securities

△0

0

0

21

10

△ 11

Credit costs

21

40

19

Ordinary profit

146

147

1

Net profit

99

100

1

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

ExpensesProfit on equities

Consolidated
Ordinary profit
Net income attributable to owners ofparentFactors to increase or decrease
net core operating profit

Nonpersonnel
Personnel expenses
expenses
+9

180
Loan
interest

160

+10

120

140

+1

Deposit+11
interest Securities Fees andinterest commissions
+2

△8

140
V:+10
R:±0

Others

V:△0
R:＋2

+8

V:△5
R:△3

173

V:Volume factor
R:Rate factor

100
2019/32020/3（unit : 100 million yen）
2019/32020/3（actual）（forecast）

162

163

1

106

107

1

YoY

25

Improving
management
efficiency tosurvivecompetition

Ensuring customeroriented approach

Expanding contact
points withcustomers
Offering solutions
above and beyond
expectations

Engagement
First

Basic Policy
Exploring corebusiness operations
deeperTaking on newrevenue-generating
opportunities

Addressingchanges ofexternal
environment
swiftly

Contributing to
the growth ofcustomers andlocal economy

Building
strategies byregionHelping each
employee
improveperformanceLong-term vision

Positive
cycle

Actively getting
involved incommunity
tasks

Building a stable andindefinite revenuegenerating structure to
support local
communities

Improving fundmanagement
capacity26