Information Meeting. The Bank of Yokohama, Ltd. Appendix. December 2, The Best Regional Bank that is strongly supported by customers and a

Transcription

1 Information Meeting Appendix The Bank of Yokohama, Ltd. December 2, 2005 The Best Regional Bank that is strongly supported by customers and a that continues to evolve

2 Table of Contents Our Home Market Card Business Market Share in Kanagawa Prefecture Asset Quality Added Value Equity Portfolio Loan Yields Investment in Bond Securities Transition of Fees & Commissions Deferred Tax Assets Breakdown of Fees & Commissions Number of Employees 1

3 Our Home Market (1)Potential of Kanagawa Prefecture Population(2005) 8.64 million (3rd/47 prefectures) (Tokyo, Osaka, Kanagawa) Number of Businesses (2004) 285 thousand (4th/47 prefectures) (Tokyo, Osaka, Aichi, Kanagawa) Gross Prefectural Product (FY2002) JPY30.1 trillion (4th/47 prefecture) (Tokyo, Osaka, Aichi, Kanagawa) Manufacturing Output (2004) JPY18.5 trillion (2nd/47 prefectures) (Aichi, Kanagawa) Retail Sales (2002) JPY8.5 trillion (3rd/47 prefectures) (Tokyo, Osaka, Kanagawa) Kanto Area ($10Bn) Comparison of of GDP (FY2003) Osaka Aichi Tokyo (Note) Source Population, # of Businesses: Ministry of Public Management, Home Affairs, Posts and Telecommunications Gross prefectural product: Each Prefecture Manufacturing Output, Retail Sales: Ministry of Economy, Trade and Industry Kanagawa Switzerland Sweden Austria Hong Kong Belgium Kanagawa Norway 2

4 Our Home Market (2)Major Projects <Projects below include those that are not finalized > Tokyo Kanagawa New Station (Shinkansen) Kohoku New Town Area MM21Area Keihin Area MM21Area HQ of Nissan Motors to be relocated Large Commercial facilities Large Hotels High rise condos Tourist Spots Kohoku New Town Area Condos New municipal subway Large commercial facilities Keihin Area R & D facilities Logistics Facilities Academic & Industrial facilities (%) (%) Change in in Loans Loans outstanding (YoY) (YoY) Kanagawa Kanagawa Other Areas Second Tomei Highway (Mid Kanagawa) Sagami Jyukan Highway (Mid Kanagawa South & mid Yokohama) Third Metropolitan Airport(Offshore of Haneda Airport) New Station for Shinkansen(Samukawa) Yokohama City Loop Line National National Average Average May-04 Sep-04 JAN-05 May-05 Sep-05 (Note1)Source: Bank of Japan (Note2)Change: shown YoY 3 month moving average 3

5 Our Home Market (3)Kanagawa s superiority to the rest of the Kanto area ~ Relative Position (Indexed Average of Tokyo, Tochigi, Gunma, Ibaragi, Chiba, Saitama and Kanagawa) = 100 Population Growth(2000~04) 144.6(2.85%) Source:Ministry of Public Management, Home Affairs, Posts and Telecommunications New Business Formation (2004) Source:Ministry of Public Management, Home Affairs, Posts and Telecommunications (4.88%) (JPY4.05Mn) Taxable Income(2004) (per tax payer) Source:Japan Marketing Education Center 108.0(JPY17.44Mn) Housing Starts(2004) Source:Ministry of Land, Infrastructure and Transport (101.1 thousands) Savings(1999) (per household) Source:Ministry of Public Management, Home Affairs, Posts and Telecommunications 4

6 Market Share in Kanagawa Prefecture Market Share in in Kanagawa Prefecture<Sep-05> Co-op Co-op Banks Banks 19% 19% Trust Trust Banks Banks etc. etc. 2% 2nd 2% 2nd Regionals Regionals 5% 5% Regional Regional Banks Banks 4% 4% E E Group Group 7% 7% D D Group Group 4% 4% Loans (BoY (BoY Loans: Loans: JPY6.2Tn) BoY 27.8% A A Group Group 13% 13% B B Group Group 13% C 13% Group Group 6% 6% Deposits Co-op Co-op Banks Banks 19% 19% Trust Trust Banks Banks etc. etc. 4% 2nd 4% 2nd Regionals Regionals 5% 5% Regional Regional Banks Banks 4% 4% E E Group Group 4% D 4% D Group Group 14% 14% (BoY (BoY deposits: JPY8.4Tn) BoY 22.3% A A Group Group 13% 13% B B Group Group 11% 11% C Group Group 4% 4% Co-op Co-op Banks Banks 40% 40% Trust Trust Banks Banks etc. etc. 2% 2% # of of Branches 2nd 2nd Regionals Regionals 10% 10% Regional Regional Banks Banks 6% E 6% E Group Group 4% 4% (BoY (BoY Branches: 170) 170) BoY 18.7% A A Group Group 7% 7% B B Group Group C Group Group 5% 5% 3% 3% D D Group Group 5% 5% (Note1) Source: Bank estimates (Note2) MTFG and UFJ, merged as MUFG as of Oct. 1, 2005, are counted separately on graphs above. 5

7 Added Value Sep-05: Share of Smaller Corporations in Pref. accounts for 25% Residential loans accounts for 60%, of total added value. Continue to focus on these sectors. Added Value by by Sector (Sep-05) Yield Yield on on Loans Loans (Actual) (Actual) 6% 6% Added Added Value Value Ratio Ratio 2.50% 2.50% Yield Yield (%) (%) 2.00% 2.00% 1.50% 1.50% 1.00% 1.00% Added Added Value Value Guideline Level Level 4% 4% 2% 3% 2% 3% Added Added Value Value % of of Total:25% Added Added Value Value % of of Total: Total: 60% Risk Risk Charge Charge Credit Credit Cost Cost Ratio Ratio Expense Expense Ratio Ratio 0.50% 0.50% 0.00% 0.00% 1 Out Out Pref Pref In In 1Pref Out 1 1 Out Pref Pref In In Pref 1 Pref Residential 1 Residential Loans Loans Consumer Consumer \0.5trillion \0.5trillion\0.3trillion \0.3trillion\0.6trillion \0.6trillion \2.1trillion \2.1trillion \3.0trillion \3.0trillion \0.4trillion \0.4trillion (8%) (8%) (4%) (4%) (9%) (9%) (30%) (30%) (44%) (44%) (5%) (5%) Large Large && Medium Medium sized sized Corporations Corporations Smaller Smaller Corporations Corporations Individuals Individuals Funding Funding Cost Cost Ratio Ratio Total Total \6.9trillion \6.9trillion (100%) (100%) (Monthly (Monthly Average Average balance) balance) (Note1) Corporations = normal borrowers (excluding no ratings) + claims in need of caution other than in need of special caution. Smaller corporations =capital under 1Bn(Large & Medium sized ccorporations =capital more than 1Bn) (Note2) Funding cost ratios is calculated from market rates corresponding to interest maturities of each loan. (Note3) Credit cost ratio is calculated from Estimated Loss Ratio (Estimated default ratio Estimated collection ratio). (Note4) Risk Charge is calculated from Credit risk Target ROE 10% (before taxes:17%). 6

8 Loan Yield Continuous efforts to Improve Interest Margin since FY97 ~ ROA Promotion RAROA Promotion Added Value Promotion Average loan yield for the month of Sep-05: against City Banks %, against Regional Banks %. How Loan Yields changed (%) (%) (Non-consolidated basis) basis) Average Average of of Major Major Regional Regional Banks Banks <vs. <vs. Regional Regional Banks> Banks> % % BoY BoY Average Average of of City City <vs <vs. City City Banks> Banks> Banks % Banks % Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Sep-05 Mar-07 (Note1) Source: Bank of Japan (Note2) Contracted interest rates for all loans are the average interest rates of each month. 7

9 Fees & Commissions(Domestic Operations) Expanded Fees & Commission business through Non-Deposit Products(Investment Trust, Annuity Insurance). Fees & Commissions increased to JPY 17.8Bn in FY05 1st Half(up JPY 2.9Bn, +19.4% from FY04 1st Half), Fees & Commissions Ratio increased to 17.5%. Forecast for FY05: Expected to go up to JPY36.5Bn(Fees & Commission Ratio to be 17.9%). (JPY (JPY Bn) Bn) Fees and and Commissions (Domestic) (Non-consolidated basis) basis) 17.9% Fees Fees and and Commissions Ratio Ratio 14.6% 13.9% 13.4% 13.2% % Forecast Forecast nd nd Half Half st 1st Half Half (FY) (FY) (%) (%) (Note) Fees and Commissions Ratio =Fee Income (Domestic) Gross Operating Income (excluding gains and losses on sales and redemptions of both bonds). In FY05, Gross Operating Income does not exclude them. 8

10 Fees & Commissions Income(Domestic Operation) Breakdown of of Fees Fees & Commissions Income(FY05-1st) (Non-consolidated basis) basis) (JPY (JPY Bn) Bn) Change Change in in the the breakdown of of Fees Fees & Commissions Income Income during during the the last last 33 years years (Non-consolidated basis) basis) Private Private Placement Placement Bonds Bonds 3% 3% Syndicated Syndicated Loans Loans 11% 11% Others Others 7% 7% Remittances Remittances Business Business 31% 31% Investment Investment Trusts Trusts 11% 11% Total Total JPY22.2Bn Annuity Annuity Insurance Insurance 12% 12% Settlement Settlement 12% 12% ATM ATM 13% 13% Investment Investment Trust Trust Annuity Annuity Insurance Insurance Syndicated Syndicated Loans Loans Private Private Placement Placement Bonds Bonds Settlement Settlement ATM-related ATM-related (Note)Changes represent those between FY02 1st Half and FY05 1st Half. 9

11 Card Business Bank Card (4 (4 functions in in 1 card) Card Loan for for Consumer Cash Card International Credit Card Loan Card (JPY0.1~3.0Mn, Interest rate of of 13.1%) Debit Card Quicky(QYQY) (Started Apr-02) Unmanned channel Same-day response Loans of of JPY0.1~ 0.5Mn Interest rate of of 17.6% BoY's Proprietary Model No Business Alliance (Apr-05) Additional service & Service Points by forming Alliance with Sumitomo Mitsui Card (Oct-05) Cash Card equipped with IC Card (Apr-06) Measures taken for strengthening Bank Card Exempted Annual Fee (FY06 1st Half) Launch new Gold Card Number of Bank Card Holders Mar-05 Sep-05 Change 605.7thousand 635.6thousand +29.9thousand 10

12 Asset Quality (JPY (JPY Bn) Bn) Number Number and and Amount Amount of of Loans Loans to to Large Large Borrowers Borrowers (Non-consolidated basis) basis) Transition of of Borrowers by by category (Mar-05 Sep-05) ## of of Large Large Borrowers Borrowers (Loan Amount) Sep-05 M a r r 0 5 AA BB C Total Total AA 99.8% 0.2% 0.0% 100.0% BB 9.7% 87.2% 3.0% 100.0% C 0.3% 5.5% 94.2% 100.0% Loans Loans Outstanding (( (the (the# of of Borrowers) Sep-05 M a r r 0 AA BB C Total Total AA 99.9% 0.1% 0.0% 100.0% BB 12.1% 83.8% 4.2% 100.0% Mar-03 Mar-03 Mar-04 Mar-04 Mar-05 Mar-05 Sep-05 Sep C 1.7% 1.4% 96.9% 100.0% 5 A: A: Normal B: B: In In need of of special caution C: C: Possible/Virtual/Legal bankruptcy (Note) Large Borrowers: those categorized as problem claims and claims in need of caution other than in need of special caution with more than JPY5Bn in loans. (Note)Transition is based on change from Mar-05 to Sep

13 Equity Portfolio (JPY (JPY Bn) Bn) Equity Securities Held (%) (%) (Non-consolidated basis) basis) % 81% 59% 59% 49% 49% Equity Equity securities held(book value) value) Shareholder's Equity Equity Equity Equity securities held held (book (book value) value) Unrealized gain gain (loss) (loss) 29% 29% 25% 25% 25% 25% Equity Equity securities held held (market value) value) Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Sep BoY Criteria for the Devaluation of Equity Securities % decline Normal More than 50% 30 to 50% Less than 30% In Need of Caution Possible Bankruptcy Virtual or Legal Bankruptcy FY04 FY05 1st Half Loss on Devaluation of Securities JPY 0.1Bn JPY 0.6Bn Evaluation Gain (Loss) on Other Securities +JPY43.8Bn +JPY62.6Bn Equity Securities +JPY42.5Bn +JPY64.0Bn Bonds +JPY1.3Bn -JPY1.4Bn 12

14 Investment in Bond Securities (JPY (JPY Bn) Changes Bn) in in Balance, Duration and and Unrealized gain of of Bonds Held (Non-consolidated basis) basis) 1,400.0 Duration shifts within the the range centered on on 2 years 1, ,118.5(Mar-03) 954.2(Mar-01) 1, (Mar-05) (Mar-04) (Sep-05) (Mar-02) Unrealized gain gain (Modified (Modified Duration: Duration: Year) Year) 13

15 Deferred Tax Assets (JPY (JPY Bn) Bn) Deferred Tax Tax Assets (Non-consolidated basis) basis) (%) (%) 31.7% 29.1% 26.2% Percentage share share of of DTA DTA versus versus Shareholders' Equity Equity % % 8.2% (17.6) (17.6) Deferred Tax Tax Assets Assets (8.4) (8.4) (0) (0) (0) (0) Net Net Business Business Profit Profit (Before (Before Provision Provision (Reversal) (Reversal) of of General General Allowance Allowance for for Possible Possible Loan Loan Losses) Losses) (0) 51.4 (0) (0) (0) Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Sep (Note1) Deferred Tax Assets, excluding deferred tax liabilities for net unrealized gains on available-for-sale securities (Note2) Balance of loss carried forward in brackets (Note3) Net Business Profit in Sep-05 denotes forecast for FY05 14

16 Number of Employees Until Mar-05:The number of employees was on steady decrease centered on personnel in Headquarters. From now on:plan to increase the number of sales personnel by hiring mid-careers, etc. (# (# of of Employees) Number of of Employees (Non-consolidated basis) basis) 5,000 4,000 4,815 4,269 3,869 3,431 3,382 3,456 3,000 2,000 4,136 4,136 Branches, Loan Loan Centers & etc. etc. 3,648 3,648 3,373 3,373 3,061 3,061 2,999 2,999 3,055 3,055 1,000 0 Headquarters Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Sep-05 15

17 Copyright 2005 The Bank of Yokohama, Ltd. This document may not be reproduced or distributed to any third party without prior written consent of The Bank of Yokohama, Ltd. This document has been prepared for information purposes only and does not form part of a solicitation to sell or purchase any securities. Information contained herein may be changed or revised without prior notice. This document may contain forward-looking statements as to future results of operations. No forward-looking statement can be guaranteed and actual results of operations may differ from those projected.