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Investor Presentaiton

Overview of profit/loss in FY2019 Overview of profit/loss (Billion yen) FY2019 YoY change (Change rate) Net interest income 68.3 0.2 Interest on loans 61.9 0.2 Interest and dividends on 12.7 0.1 securities Deposits NCD interest (-) 1.9 -0.3 External procurement costs, etc. 4.5 0.5 (-) Net fees and commissions 15.4 -1.8 income Investment banking business 3.4 -0.3 Asset management business 6.1 -0.5 Personal loan-related -5.0 -0.6 Foreign exchange 1.5 0.2 Traditional fees and 9.4 -0.5 commissions income Gross income from core businesses 83.7 -1.6 Expenses (-) 52.7 0 Net income from core businesses 31.0 -1.6 ( -4.7%) Net income from core businesses (not including gains/losses from cancellation of investment trusts) 31.0 -1.6 -4.7%) Gains/losses related to government 3.6 1.8 bonds and other bonds Effective business gains/losses 34.7 0.3 Gains/losses related to equities, etc. 5.6 1.9 Credit costs (-) 4.2 1.1 Other temporary gains/losses 1.3 0.4 Ordinary profit 37.4 1.5 4.3%) Extraordinary gains/losses -3.3 -3.1 Net income 24.1 -1.2 -4.8%) -1.8%) -0.1%) . • Key points Despite increased interest on loans, net income from core businesses fell by 1.6 billion yen on a year-on-year basis to 31 billion yen, due mainly to decreases in net fees and commissions income. Despite increased securities-related gains, net income fell by 1.2 billion yen on a year-on-year basis to 24.1 billion yen due to various factors, including the recording of impairment losses on property, plant, and equipment marked for disposal. Profit attributable to owners of the parent fell by 1.3 billion yen on a year-on- year basis to 24.2 billion yen. Net interest income Net interest income rose by 200 million yen year-on-year to 68.3 billion yen due to factors such as an increase in interest on loans accompanying an increase in loan balances. Net fees and commissions income . • • • Net fees and commissions income fell by 1.8 billion yen year-on-year to 15.4 billion yen due to various factors, including decreased gains on the asset management business resulting mainly from lower commissions on sales of insurance. Expenses Expenses were largely unchanged year-on-year (down slightly), at 52.7 billion yen. Personnel expenses fell, due mainly to lower retirement benefit costs, although non- personnel expenses and taxes increased as a result of factors including increased depreciation costs and the consumption tax increase. Other (credit costs, etc.) Gains/losses related to equities, etc. rose by 1.9 billion yen year-on-year to 5.6 billion yen due to the sale of cross-shareholdings. This was despite the recording of 1.7 billion yen in losses on devaluation of stocks and other securities (impairment) following the decline in equities markets due to COVID-19. Credit costs, including provision of defensive reserves (approx. 1.5 billion yen) in preparation for future business conditions and other factors, rose by 1.1 billion yen on a year-on-year basis to 4.2 billion yen. Impairment losses on property, plant, and equipment marked for disposal (3.2 billion yen in total) were recorded as extraordinary losses. Consolidated ordinary profit 38.9 1.9 5.3% Profit attributable to owners of the 24.2 -1.3 -5.1%) parent Dividends/share (yen) 22.5 2.5 Consolidated payout ratio 28.8% 4.5%pt Dividends (Annual) dividends of 22.5 yen/share are planned as the result of revisions to the payout table in February 2020 (see p. 6 for details). 3
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